TOR: Final and Interim Audits for SHARE and SMART Projects

1. INTRODUCTION

Caritas Austria (CA) has been providing humanitarian aid to vulnerable persons in Lebanon and the MENA region since the mid-1990s. Working through local partners, Caritas Austria’s programmes in Lebanon have been focused with health, mental health, advocacy & human rights, education, protection and emergency response.

Implementing partner:

Amel Association: is a civil, non- sectarian organization established in 1979 that has been working in Lebanon for over 45 years with a mission to advocate for the rights of all in a dignified approach, particularly to the most vulnerable Lebanese, refugees, and migrants. The association has 32 centres in Lebanon, located in the regions of Beirut, Mount Lebanon, the Bekaa Valley, and South Lebanon, with an estimated 1200 workforce. In addition, Amel has 6 Mobile clinics, 2 Educational Mobile Units, and 2 Protection units. Human dignity and solidarity are set at the core of the humanitarian response with a commitment to accountability, sustainability, impartiality, neutrality, gender sensitivity, and transparency.

2. PROJECTS

1. LOT 1: SHARE - Strengthening health, mental health, and resilience in emergencies for at-risk vulnerable older people and crisis-affected communities in Lebanon 
   • CAUT project number: 2409112
   • Implementing partners: Amel association
   • Back donor: Neighbor in Need (NiN)
   • Budget: 271.427,00 Euros
   • Project duration: 01.01.2025 – 31.01.2026
   • Audit reporting period: 01.01.2025 - 31.12.2025
2. LOT 2: SMART – Strengthening Mental health Access and Recovery through Therapy for Crisis-Affected Communities in Lebanon
   • CAUT project number: 2509039
   • Implementing partner: Amel association
   • Back donor: Neighbor in Need (NiN)
   • Project budget: 165.000,00 Euros
   • Project duration: 01.06.2025 - 31.05.2026
   • 1st Audit (interim): covering reporting period: 01.06.2025 - 31.12.2025
   • 2nd Audit (final): covering reporting period: 01.01.2026-31.05.2026

Project descriptions:

SHARE project: The SHARE project is an urgent response project designed to address and mitigate the unmet and immediate psychosocial and health needs of vulnerable older people. This will be done through an emergency response that includes providing a comprehensive package using a mobile methodology for the support of older people in Akkar (North of Lebanon) where a very large number of Internally Displaced Persons (IDPs) are there after the escalating situation in after September 2024, ensuring swift access to essential services. Additionally, Amel will offer immediate mental health support to the older people affected by the crisis in the targeted area. Through these actions, the project aims to alleviate the urgent health and mental health challenges facing vulnerable communities in Lebanon's current emergency context.

SMART project: The SMART project is an emergency initiative aimed at addressing the urgent mental health needs of crisis-affected communities, including refugees, migrants, Lebanese, and humanitarian workers. Implemented through two PHCCs in Sour/Tyr and Bazourieh, as well as several Amel Centres in the South, Beirut, and Mount Lebanon, the project will deliver specialized mental health and psychosocial support to 437 vulnerable individuals and 120 frontline workers. By offering psychotherapy, psychiatric care, and PSS sessions, the project seeks to reduce psychological distress and strengthen resilience, while also contributing evidence to the National Mental Health Program (NMHP).

3. OBJECTIVES OF THE EXPENDITURE VERIFICATION

The objectives of the expenditure verification are:

1. to provide a professional opinion on the quality of processes and accounting practices within the audited organisation and specifically as applied within the project at hand following point 5 (procedures to be performed by the Auditor)
2. to independently verify that the project mentioned above has been implemented in compliance with the requirements of the following documents of reference:

• Legislation: National legislation, with particular attention to:
  • Respective social and labour law (including staff and salary regulations).
  • Regulations on VAT and other taxes
• International standards:
  • ISA - International Standards on Auditing
  • IFAC – International Federation of Accountants
  • Relevant standards of the local accounting profession
  • Local legislation on accounting and reporting
• Project:        Cooperation agreement relative to the project or to the partner organization(s), Project Documents, Terms of Reference (TOR), Budgets.
• Accounting: Accounting documents subject to the expenditure verification, financial and operational reports concerning the project.
• Auditor: The present terms of reference and the related mandate for financial audit.

3. to assess whether the partner has adequate policies and procedures in place relating to the following matters (those matters are not covered by the audit engagement in accordance with ISA as mentioned above):
   1. Existence, adequacy and effectiveness of the Internal Control System (ICS)
   2. Conformity with the project objectives and adherence to the contract conditions
   3. Economical conduct of business and effective use of financial resources
   4. Existence of and compliance with security measures to prevent double invoicing/double funding
4. to provide a professional opinion on the quality of the audited organisation’s financial reporting and its suitability for the requirements of the donors.

4. AUDITOR´S MANDATE

The financial audit is to be carried out at the project location (administrative offices and/or decentralised sites, if applicable). In performing his/her mandate, the auditor shall:

• Verify sound financial management, accuracy and completeness of bookkeeping.
• Audit the accounts on the basis of original vouchers.
• perform accurate controls in order to certify the absence of duplication of funding (i.e.: same costs funded by different donors).
• Verify compliance of expenditures with budget items.
• Verify compliance of expenditures with project duration.
• Verify that there is a clear reconciliation between accounting records, original vouchers and financial data included in the project reports.
• Verify that the financial reports provide a true picture of the project’s finances.
• Provide information on the project revenues, including donor transfers, bank interest and indication of applied exchange rates.
• Verify proper application of the applicable procurement regulations.
• Provide information on the treatment of taxes (especially VAT) in the financial reports.
• Proof of the existence of all capital assets and investments purchased with the project funds according to the inventory presented (carry out random physical assets verification).

5. PROCEDURES to be performed by the AUDITOR

The auditor verifies based on original documents that

1. the project is implemented in accordance with the principles of economy, efficiency and expediency.
2. proper book-keeping and sound financial management have been maintained by the Implementing Partner, the related expenditure practices are correct. Generally Accepted Accounting Standards have been met.
3. the project funds have been used in conformity with the Cooperation Agreement and its annexes, in particular:
   1. the project funds were spent exclusively for project related expenses and solely for the purpose intended.
   2. costs have been incurred during the implementation period.
   3. costs meet the eligibility criteria stipulated in the Cooperation Agreement and its annexes.
4. the financial report presented by the Implementing Partner presents the actual expenditure incurred and the revenue received for the project for the respective reporting period accurately.
5. the project expenditures are allocated to the last approved (allocated) project budget.
6. individual expenditures made from grant funds are clear evident from the project bookkeeping and are assigned to the correct budged items as specified in the approved Grant Application.
7. where expenditure was apportioned, the applied allocation key was based on sufficient, appropriate and verifiable underlying information.
8. over expenditure in budget categories, if any, lies within the thresholds stipulated in the Cooperation Agreement and its annexes.
9. costs declared in the Financial Statement are justified by the relevant supporting documents in form of genuine and original invoices, receipts and vouchers bearing all necessary information; these original supporting documents are clearly associated with the project and the project’s time frame.
10. all expenditures claimed under the financial report have been settled and paid for, no outstanding invoices or accrued costs have been included in the financial report.
11. all necessary supporting documents for employees’ costs are available and these costs are reported correctly. Specifically, the auditor verifies
    4. the existence of employment contracts in accordance with the relevant national legislation.
    5. that the reported employees’ costs are calculated correctly in accordance with the approved budget.
    6. that only actually paid employees’ costs have been claimed under the Financial Report and this has been evidenced by the respective supporting documents.
    7. time sheets specifying the employee's involvement on all projects.
12. accrued interest has been declared.
13. conversion of currency has been calculated correctly, in particularly the conversion into EUR is evidenced by currency exchange receipts and/or respective bank account statements.
14. other revenues originally not foreseen in the financial plan were registered.
15. applicable procurement regulations have been complied with.
16. applicable provisions of social and labour laws in all countries where the project is being implemented have been complied with.
17. applicable provisions of the company and tax laws and regulations have been complied with.
18. regulations on travel expenses have been followed.
19. sub-grants foreseen in the project document have been provided to third parties and have been properly accounted for based on actual costs.
20. requests and recommendations from the previous expenditure verifications regarding any project relevant matters have been considered and implemented.

Additionally

• In case of education and training courses, to examine the relevant invoices, bills, receipts (fees, food, accommodation, transport, etc.) and also the lists of participants.

6. AUDITOR’S REPORT

The auditor shall produce a draft and a final Expenditure Verification Report based on the official project budget and exactly reflecting its budget line structure.

The expenditure verification reports must be written in English and contain at least.

• Implementing organisations’ name and contact details
• Project number and official project title
• Brief description of the project and partner(s)
• Reporting period and currency
• Exchange rates used in the financial report (to Euro), with detailed explanation of their calculation
• Total amount of budgeted and actual expenditures as indicated in the official direct project budget
• Complete list of reported expenditures classified according to the relevant budget lines;
• Total amount of budgeted and actual incomes
• Complete list of project funds transferred, including donors’ names, dates and exchange rates
• Indication on treatment of taxes and especially VAT
• Amount of actual expenditures verified - Expenditure Coverage Ratio
• Objectives, Scope and Description of the procedures performed
• Findings from the expenditure verification
• Recommendations, if applicable
• Follow up of previous recommendations, if applicable
• Other relevant matters
• Reference to contact persons/sources of information from implementing partner organisation during execution of the expenditure verification
• Auditor's name, position, address, phone, fax and e-mail
• Date, auditor's signature
• Inventory list of all goods/equipment procured within the project

7. MANAGEMENT SUPPORT / Contractor’s duties

The contractor will provide the external auditor with the following material and sources of verification:

• ToR for the external audit
• Cooperation Agreement between Caritas Austria and its implementing partner organisation
• Official project budget
• Financial project reports, including complete list reported expenditures
• Original vouchers/receipts
• Access to the used bookkeeping system
• Access to information related to bank and cash statements
• Any other documents required by the auditor for the performance of his/her tasks

The project managers, the accountants and the staff working on the project will be open to collaboration with the auditor.

8. REQUIRED EXPERTISE

1. The financial audit of projects is to be carried out by an independent auditor having the required professional competence and experience, and in accordance with generally accepted international auditing standards.
2. The auditor must not have been involved in the operation’s accounting.
3. The auditor must not personally be connected in any way with the organisation being audited.
4. The auditor must be a registered audit company in Lebanon.

9. WORK PLAN

• The fieldwork (for the 1st lot and the 1st audit of the 2nd lot) shall commence not later than February 28th, 2026.
• The fieldwork for the 2nd audit of the 2nd lot shall commence no later than January 30th, 2027.

The auditor will submit within 15 working days of the conclusion of the field work a draft report to Caritas Austria for comments to be received within 10 working days. Following expiration of this deadline, the auditor will provide the final report to the Coordinator within 10 working days from the receipt of the comments (if any).

10. SUBMISSION OF OFFERS

Interested auditors are requested to send their applications in English language to rana.najib@caritas-austria.at with the subject line “Lebanon NiN audits 2025”

Deadline for reception of offers: 24th of November 2025, 23:59 CET. Applications submitted after the deadline will not be considered.

Applications should include as a minimum:

• Company profile and contact details;
• The methodology, work-plan and timelines for undertaking and completing the audit and the deliverables;
• Financial proposal (in EUR);
• The CV’s of key staff proposed to do the assignment;
• Confirmation of the company understanding of the ToR (Annex 1);
• Proof that the company is registered in national register as the auditing company;
• A confirmation that the consultant will carry out the final review in accordance with the Terms of Reference, Caritas Austria’s “General Conditions of Procurement” (Annex 2) and Caritas Austria’s “Safeguarding Guideline” (Annex 3).
• Signed and stamped “Declaration on data protection” (Annex 4)
• Signed and stamped “Exclusion Criteria” (Annex 5)

Selection criteria

• Tender submission: compliance with the invitation and ToR
• Working according to international auditing standards
• Be a certified and registered auditor in the country
• Technical and professional capabilities / experience

Award criteria

In accordance with Caritas Austria’s procurement rules a selection committee of Caritas staff will evaluate all offers and select the best provider based on price and quality (“best value for money”). Price and quality will be weighted with 40% (quality) and 60% (price). 

All candidates will receive a confirmation of receipt of the offer and will be informed on the outcome of the selection process. The successful bidder will be informed within 8 working days after the deadline for submitting offers.

Contact for clarification requests: rana.najib@caritas-austria.at