Financial Audit Report

Objective of the Assignment

The objective of this audit is to enable the auditor to express an independent professional opinion on whether the financial statements present a true and fair view of the financial position of Al Majmoua in accordance with:

• International Financial Reporting Standards (IFRS)
• Lebanese laws and regulations

Scope of Work

The selected audit firm will be required to:

1. Audit the annual financial statements of Al Majmoua for the fiscal year ending 31 December 2025.
2. Examine accounting records, internal controls, and supporting documents, ensuring compliance with internal policies, Lebanese regulations, and IFRS.
3. Review key operational and financial processes, including but not limited to:
   • Loan portfolio and provisioning
   • Revenue recognition
   • Cash and bank reconciliations
   • Fixed assets and depreciation
   • Payroll and HR processes
4. Assess internal control systems and provide recommendations for improvement.
5. Prepare an Audit Report, containing:
   • Independent auditor’s opinion
   • Statement of financial position
   • Statement of activities
   • Cash flow statement
   • Notes to the financial statements
6. Provide a Management Letter detailing findings, risks, and recommendations.
7. Attend meetings (virtual or onsite) with Al Majmoua’s management and board (when required) to discuss draft and final findings.

Deliverables

The audit firm shall provide:

1. Draft Audit Report.
2. Final Audit Report — approved and signed by the licensed auditor in LBP and USD.
3. Management Letter with observations and recommendations.
4. Any additional reports required by donors or regulatory bodies, if applicable.

Timeline

The expected timeline is as follows:

• Kickoff Meeting: January 2026
• Fieldwork: January–February 2026
• Draft Report Submission: March 2026
• Final Report Submission: April 2026

Dates may be adjusted in coordination with Al Majmoua.

 Proposal Requirements

Interested audit firms should submit:

1. Technical Proposal, including:
   • Company profile
   • Understanding of the assignment
   • Proposed methodology and audit plan
   • Team composition and qualifications
   • Relevant experience and references
2. Financial Proposal, including:
   • Detailed cost breakdown
   • VAT considerations
   • Any additional fees
3. Legal and Administrative Documents, such as:
   • Company registration
   • Tax compliance documents
   • Auditor license

Evaluation Criteria

Proposals will be evaluated based on:

• Experience and expertise in NGO/microfinance audits
• Methodology and workplan
• Qualifications of proposed team
• Cost competitiveness
• References and past performance