Country: Republic of Lebanon
Name of Project: Strengthening Lebanon COVID 19 Response Project
Contract Title: External Financial Audit
Loan No.: IBRD 94280
RFB Reference No.: LB-MoPH-473136-CS-LCS
 
The Government of Lebanon has received financing from the World Bank towards the cost of the Strengthening Lebanon COVID-19 Response Project (SLCRP). The project is being implemented by the Ministry of Public Health (MoPH). The MOPH intends to apply part of the proceeds for consulting services.

The consulting services (“the Services”) includes the carrying out of Financial Audit of SLCRP over the period starting January 2024 till December 2025, throughout the grace period till April 2026.

The detailed Terms of Reference (TOR) for the assignment can be found attached to this procurement notice below.

The MoPH now invites eligible consulting firms (“Consultants”) to indicate their interest in providing the Services. Interested Consultants should provide information demonstrating that they have the required qualifications and relevant experience to perform the Services. The shortlisting criteria are: (a) core business and years in business, (b) relevant experience, (c) technical and managerial capability of the firm. Key Experts will not be evaluated at the shortlisting stage.

The attention of interested Consultants is drawn to Section III, paragraphs, 3.14, 3.16, and 3.17 of the World Bank’s “Procurement Regulations for IPF Borrowers” September 2023 (“Procurement Regulations”), setting forth the World Bank’s policy on conflict of interest. 

Consultants may associate with other firms to enhance their qualifications, but should indicate clearly whether the association is in the form of a joint venture and/or a sub-consultancy. In the case of a joint venture, all the partners in the joint venture shall be jointly and severally liable for the entire contract, if selected.

A Consultant will be selected in accordance with the Least Cost selection method set out in the Procurement Regulations.

Further information can be obtained at the address below during office hours [10:00 to 14:00].

Expressions of interest must be delivered in a written form to the address below (in person, or by e-mail) by February 25, 2025.

Att.: Mr. Saad Abdallah
Procurement Officer
SLCRP Project
Email: lhr.covid19@gmail.com  
Ministry of Public Health
Phone: 01/830300 – ext. 750
Jnah Area, MOPH Building    
 
 
Terms of Reference
Strengthening Lebanon COVID-19 Response (SLCRP)
Financial Audit
Proc. Ref.: LB-MOPH-473136-CS-LCS
Project Background
 
The Ministry of Public Health is implementing a three-years project under the title of “Stregthening Lebanin COVID-19 Response” financed by the World Bank. The project is funded by a loan through a non-concessional financing from the International Bank of Reconstruction and Development (IBRD Loan 94280) and a concessional financing Trust Funds (TF B8782/ TF B8614). The implementation period will cover FY23 – FY25. The development objective the Project is strengthen the capacity of public hospitals and MoPH to respond to any future pandemics or health emergencies, and to strengthen the country’s system for public health preparedness.

The project consists of the following components:

Component One: Procurement of COVID-19 vaccines and deployment (US$ 500,000) 
This component will support the purchase of COVID-19 vaccines and related deployment activities.

Subcomponent 1.1: Procurement of Vaccines and Vaccines Supplies:) This subcomponent will support the procurement of (i) COVID-19 vaccine doses that meet the World Bank’s Vaccine Approval Criteria (VAC) and (ii) relevant vaccination consumables (diluents, syringes, etc.) to meet Lebanon’s vaccination needs, in accordance with the prioritization and eligibility criteria of the NDVP.

Subcomponent 1.2: Vaccine deployment: This subcomponent will support the relevant deployment activities, including inter alia: (i) behavior change communications to increase vaccine awareness and reduce vaccine hesitancy; (ii) mobile vaccination units to vaccinate hard-to-reach populations (e.g., in remote areas) especially those climate-vulnerable; (iii) large-scale vaccination marathons to improve vaccine uptake; (iv) operational costs of vaccination sites; (v) support to energy-efficient cold chain equipment and other vaccine-related logistics.  Activities under this component will include, when relevant, climate considerations in the development of Standard of Procedures and policy guidelines

Component 2 – COVID-19 prevention, detection, and case management (US$ 11 million):This component will support other COVID-19 prevention, detection and case management activities. This may include, inter alia: (i) payment of hospitalization bills from COVID-19 and related health conditions to public hospitals and eligible private hospitals, using provider payment methods (i.e., fee for service, per capita, etc.) as  agreed with the World Bank; (ii) procurement of pharmaceuticals, equipment and supplies needed for the prevention, detection and case management of COVID-19 and related health conditions for public hospitals; and (iii) capacity building and technical assistance in COVID-19 prevention, detection and case management. For COVID-19 treatment, the project can finance therapeutics which are recommended by WHO’s COVID-19 treatment guidelines. 

Component 3 – System Strengthening, Monitoring and Management (US$ 6.5 million)

Subcomponent 3.1: Monitoring and Project Management (US$ 2.50 million): This subcomponent will finance the project management unit, which includes at least: (i) financial management officers (FM), (ii) procurement and due diligence team; (iii) environmental and social officer; (iv) monitoring and evaluation officer and v) Coordination.  This component will also finance (i) the Vaccination Technical Audit to ensure transparent, fair and equitable vaccine deployment, with an emphasis on the WB financed vaccines as well as (ii) the Treatment Technical Audit to ensure the same for hospitalization bills from COVID-19 and related health conditions (as defined in the POM). The technical auditors will be contracted by the MoPH in accordance with World Bank’s procurement guidelines and procedures.

Subcomponent 3.2: System Strengthening (US$ 4.00 million): The subcomponent will support activities aimed at strengthening the health system in critical areas such as information systems, public health surveillance capacity, supply management/logistics, and expansion of primary health care settings.  This subcomponent could also finance the procurement of energy-efficient solutions (e.g. cold-chain or solar panels) to help ensure continued clean energy supply for functioning of equipment critical for the management of COVID-19 in public hospitals.
 
Objective and Scope of the Assignment
 
The objective of the audit of the Project Financial Statements (PFS) of the SLCRP is to enable the auditor to express at the end of each fiscal year or any other period specified by the World Bank, a professional opinion as to whether the Financial Statements and supplementary information present fairly, in all material respects, the financial position of the SLCRP at the end of each specified period, and of the funds received and expenditures incurred.

The two periods that will be covered during this audit are as follows:

The audit shall also include a separate opinion on the accuracy and reliability of the internal control procedures of the Statements of Expenditures (SOEs) submitted during the period under audit to support related withdrawals; a separate opinion reconciling opening and closing balances of the Designated Account (DA); In addition to a separate opinion stating whether the World Bank’s Procurement Regulations and the Project's Loan agreement have been properly complied with. The auditor shall carry out such tests and controls of the underlying records as the auditor considers necessary under the circumstances.

The Project's accounts provide the basis for the preparation of the Project Financial Statements (PFS) and are established to reflect the financial transactions in respect of the project, as maintained by the project implementing agency, in this case the Ministry of Public Health.
The original contract to be signed with the consultant shall cover the period stated above. The price of the contract is to cover the whole period.
 
Engaging Authority
 
The client for this audit is the Ministry of Public Heath (MoPH), the implementing agency for the SLCRP, which is required to furnish to the World Bank a copy of the Audit Report and Audited Financial Statements for each Fiscal Year no later than six (6) months after the end of the fiscal year under audit or any period otherwise specified by the World Bank.
 
Project Financial Statements
 
According to section 5.09(b) of the World Bank’s General Conditions for Loans, referred to in Section B – “3” of the Financing Agreement IBRD 94280 and TF B8782 / GPGTF B8614, the Ministry of Public Heath, the implementing agency for this Project, shall ensure that a financial management system is maintained and Financial Statements are prepared in accordance with consistently applied accounting standards  acceptable to the World Bank, both in a manner adequate to reflect the operations, resources and expenditures related to the project; and in accordance with the provisions of the Loan Agreement which states that the Financial Statements should be periodically audited by independent auditors acceptable to the World Bank, in accordance with consistently applied auditing standards acceptable to the World Bank; and the Financial Statements, as so audited, should be furnished to the World Bank no later than six (6) months after the end of the fiscal year under audit or any other period specified by the World Bank, together with other information concerning the audited Financial Statements and such auditors, as the World Bank may from time to time reasonably request.

The Project Management Unit (PMU) at the Ministry of Public Health holds the responsibility for the preparation of the set of Financial Statements relating to the SLCRP on which the Independent Auditor shall report. The PMU will ensure that all the necessary records are available for the audit, all the accounting entries and adjustments have been made, and all the necessary actions have been taken to allow the auditors to issue the final report on time.  The Project Financial Statements (PFS) are comprised of the following:

a) Project sources and uses of funds, for the fiscal year under Audit and cumulative;
b) Uses of funds by components, category and activities, for the period  under Audit and cumulative;
c) Contract expenditures, for the period  under audit and cumulative; 

d) Statement of Expenditures (SOE) by components and activities, for the period  under Audit and cumulative;
e) Designated Account Reconciliation Statement, showing opening and closing balances including transfers to and payments from the account by loan components and activities for the period  under Audit;
f) A comprehensive list of fixed assets acquired under the project which will include a description, status, amount, purchase date, user and location of each fixed asset. 

Audit Scope
 
The Audit should be carried out in accordance with internationally accepted auditing standards such as the International Standards of Auditing (ISA) issued by the International Federation of Accountants (IFAC) and the Generally Accepted Auditing Standards (GAAS) Issued by the American Institute of Certified Public Accountants (AICPA) or the Auditing Standards published by the International Organization of Supreme Audit Institutions (INTOSAI); with regard to the relevant Loan Agreement and World Bank Guidelines.

The auditor should apply audit procedures, tests and controls that the auditor considers necessary under the circumstances and, when relevant, the auditor should indicate any material differences from international accounting standards IFAC’s and International Public Sector Accounting Standards (IPSAS) under the cash basis of accounting, and their effect on the annual financial statements. In conducting the audit, special attention should be paid to the following:
 

a) The Project funds have been used, accounted for and classified in accordance with the conditions of the relevant Loan Agreement (signed December 20, 2022 and subsequent amendment signed June 26, 2024), with due attention to economy and efficiency and only for the purposes for which the financing was provided; 
b) Goods and Services financed have been procured in accordance with the relevant Loan Agreement; and all goods purchased exist, are recorded in the fixed assets register with variances  identified and explained through a year-end physical count, and are being used for the project purposes ; 
c) All necessary supporting documents, records and accounts have been kept in respect of all project ventures, including expenditures reported via Statement of Expenditures (SOEs), Project Financial Statements (PFSs), and the Designated Account (DA). Clear linkages should exist between the books of accounts and reports presented to the Bank; 
d) Where Designated Accounts (DA) have been used; that they have been maintained in accordance with the provisions of the relevant Loan Agreement; the auditor should verify that the transactions have been properly recorded, the account was used exclusively for eligible expenditures, monthly reconciliation of the account was made and  the accuracy of account balances; 
e) The auditor must identify whether Generally Accepted Accounting Principles have been consistently applied; and whether the project accounts and Project Financial Statements (PFSs) have been prepared in accordance with International Accounting Standards IFAC’s or International Public Sector Accounting Standards (IPSAS), under the cash basis of accounting and give a true and fair view of the financial situation of the project and of resources and expenditures at the end of the period  under audit; 
f) The auditor must verify the eligibility of expenditures claimed under the Statements of Expenditures (SOEs) against the accounting records, supporting documents, and physical inspection of the goods and services procured. The auditor must also determine whether the expenditures included in the requests for replenishment are eligible for financing under the Loan Agreement; 
g) Adequate internal control structure has been developed and maintained. For this end, the auditor should evaluate and obtain a sufficient understanding of the project's internal control structure, evaluate control risks and identify reportable conditions, including material weaknesses in the design and operation of internal control; 
h) The auditor should provide a separate opinion on the accuracy and reliability of internal control procedures of the Statements Of Expenditures (SOE's) submitted during the period  under audit to support related withdrawals; 
i) The auditor should perform necessary tests to determine if the Ministry of Public Health has complied, in all material respects, with the terms of the Loan Agreement with the Bank. All instances of noncompliance, as well as all indications of illegal acts must be identified and reported; 
j) Verify that all fixed assets have been registered in the system and that a comprehensive list of these fixed assets is available showing a description, status, amount, purchase date, user and location of each fixed asset purchased under the project. 

Although the auditor is not responsible for preventing or detecting irregularities including fraud, which is the responsibility of the Project Management Unit (PMU), the audit should be planned and conducted to give the auditors a reasonable expectation of detecting material misstatements in the accounts resulting from irregularities including breach of regulations, fraudulent or illegal acts and expenditures. If such evidence exists, the auditor must report in writing to the Project Management Unit (PMU) at the Ministry of Public Health and to the World Bank without delay. In addition, The auditor will be expected to review all correspondence with the World Bank in relation to the project including copies of Aide Memoires, Mission reports, and assess progress on all financed projects issues.
 
Audit Deliverables
 
There are three main deliverables of the audit assignment

(A) Engagement Letter: The auditor should prepare an Engagement Letter, to help avoid misunderstandings, and send it to the Ministry of Public Health at the commencement of the assignment. The Letter should state the responsibility of the Project Management Unit (PMU) for specifying the timing and nature of Project Financial Statements, and disclosing requirements or other information that is expected to be provided under the audit arrangements. The Letter should also establish a time table for providing the audit opinion and reports and estimate staff time and audit fees as an indication of the intensity of the audit effort and the level of staff engaged on the assignment.
 
(B) Audit Report: The report should be submitted no later than five (5) months after the end of the period under audit in order to give the Ministry of Public Health enough time to review the report and request the Auditor to make necessary changes if any before sending the final audit report to the World Bank no later than six (6) months after the end of the period under audit. The Audit Report should include:

a) A reference to the Project Financial Statements (PFS) being audited and a statement that those financial statements are the responsibility of the Project Management Unit (PMU) and that the auditors responsibility is to express an opinion on them; 
b) A statement that the audit was conducted in accordance with International Standards on Auditing and a reference to the procedures used and the requirements of those standards; 
c) A separate reference to the Statement of Expenditures (SOEs) for the period audited. The auditors must issue an explicit professional opinion on the eligibility of the expenditures submitted to support related withdrawals and whether they are adequately reflected on the Project Financial Statements (PFS); 
d) A separate opinion reconciling opening and closing balances of the Designated Account (DA) and stating whether the DA statement adequately reflects the flow of funds during the period audited, and if these have been only for the purposes intended under the project; 
e) A separate opinion on the accuracy and reliability of internal control procedures including the identification of reportable conditions (those that have an impact on the Project Financial Statements) and material weaknesses in the internal control structure of the Project Management Unit (PMU); 
f) A separate reference to the compliance of the Ministry of Public Health with the terms of the Loan Agreement and applicable laws and regulations related to the Project Management Unit (PMU's) financial activities. The instances of material noncompliance must be reported and discussed along with the impact of the exceptions on the PFS and the recommendations that will aid in correcting the deficiencies; 
g) An explicit professional opinion on whether the Project Financial Statements give a true and fair view of the Project's financial position at the end of the period under audit. 

 
(C) Management Letter:

In addition to the Audit Report, the auditor will prepare a Management Letter, at the end of the period  under audit, in which the auditor will:

a) Give comments and observations on the accounting records, systems, and controls that were examined during the course of the audit; 
b) Identify specific deficiencies and areas of weakness in Internal Control Systems and make recommendations for their improvement; 
c) Report on the degree of compliance of each of the financial covenants on the Loan Agreement and give comments, if any, on internal and external matters affecting such compliance; 
d) Communicate matters that have come to attention during the audit which might have a significant impact on the implementation of the project; and 
e) Bring to the Ministry of Public Health’s attention any other matters that the auditor considers pertinent. 

The letter, with recommendations to address the situation and insufficiencies should be made available to the Ministry of Public Health in time. In the second audit year, as annex to the Management Letter, the auditor will mention whether or not recommendations issued on the previous Management Letter have been considered by the Ministry of Public Health and the Project Management Unit (PMU).
 
Auditor Qualifications
 
The Auditor should have the following qualifications:

 
General Audit Requirements
 
Other aspects related to the audit engagement include:

a)The Financial Statements including the Audit Report should be received by the World Bank no later than six (6) months after the end of the period under audit; 
b)The Auditor will be given access to all the books, accounts, legal documents, correspondences and any other information associated with the project and deemed necessary by the auditor. Confirmation should also be obtained of amounts disbursed and outstanding at the World Bank. The Bank Task c)Team Leader can assist in obtaining these confirmations; 
c)The Auditor should become familiar with a copy of the World Bank's", "Disbursement handbook", and "Procurement Guidelines". Those documents will be provided by the Project Manager along with copies of the Loan Agreement, Disbursement Letter, Project Paper and the Project Operational Manual (POM) especially the Project Appraisal Document (PAD) which detail the project's financial controls agreed upon with the Ministry of Public Health; 

In turn, the World Bank representatives have the right to meet with the Auditor at the Auditor's premises, to review the audit working papers and files and discuss the work performed and conclusions reached by the Auditor. The Auditor should not limit access in any way and should reply to all inquiries raised by the World Bank. Failure to comply with this provision may disqualify the auditor from dealing with projects funded or administered by the World Bank. Formal discussions should be arranged through the Project Management Unit (PMU).

Reporting Schedule
 
The External Auditor should provide the following deliverables as described below:

For each period under consideration the consultant shall furnish the following:

Firm Qualifications Requirements

Staffing Requirements

Terms of Payment