Mercy Corps is a global team of humanitarians working together on the front lines of today’s biggest crises to create a future of possibility, where everyone can prosper.

Our mission: to alleviate suffering, poverty and oppression by helping people build secure, productive and just communities.

REQUEST FOR EXPRESSIONS OF INTEREST

(CONSULTING SERVICES – FIRMS SELECTION)

COUNTRY: Sudan

NAME OF PROJECT: Sudan – Enhancing Community Resilience Project (THABAT AF)

Credit No./ Grant No.: TF-C7102

Assignment Title: Annual External Audit of THABAT AF1 Project

Reference No.: SD-MC-540205-CS-LCS

The Mercy Corps has received financing from the World Bank toward the cost of Enhancing Community Resilience Project (THABAT AF), and intends to apply part of the proceeds for consulting services.

The consulting services (“the Services”) include conducting an annual financial audit of the project for the period of January 20, 2025, to December 31, 2025, to express an independent professional opinion on whether the financial statements present fairly the project's position. The audit will verify that funds were utilized in accordance with the Grant Agreement (TF C7102) and World Bank procurement guidelines, while also evaluating the effectiveness of internal controls over financial reporting. Additionally, the Consultant will perform Agreed-Upon Procedures (ISRS 4400) to verify specific eligibility of expenditures and ensure the accuracy of the Designated Account and Statement of Expenditures (SOE) submitted during the period. The engagement is expected to be completed within a total duration of four to six weeks, with final signed reports due no later than June 22, 2026.

The detailed Terms of Reference (TOR) for the assignment can be seen at the end of this notice.

The Mercy Corps Europe 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:

1. Core Business and Service Longevity: The firm must be a legally registered and licensed audit practice with a demonstrated long-term standing in the audit and assurance profession.
2. Relevant Project Experience: The firm should demonstrate a proven track record of successfully conducting external financial audits for international donor-funded projects or public sector entities. Specific experience with World Bank-financed operations or similar complex development projects will be a distinct advantage.
3. Technical and Managerial Capability: The firm must provide evidence of its organizational structure and technical capacity to deploy a qualified audit team. This includes demonstrating that the firm has a pool of professionally certified staff (CPA, ACCA, or CA) available to meet the project's timeline and deliverables.
4. Compliance & Independence: The firm must demonstrate that it is an independent, external auditor and maintains a valid practicing license from the relevant national or international professional accounting body.

Note: The Qualifications and Experience of Key Experts shall not be included in the shortlisting criteria at this stage. Key Experts will not be evaluated during the shortlisting process.

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/latest edition), 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 (LCS) method set out in the Procurement Regulations.

Further information can be obtained at the address below during office hours (09:00 to 17:00 hours).

Expressions of interest must be delivered in a written form to the address below by e-mail by April 16, 2026.

Mercy Corps Sudan Attn: James Wandera, Procurement Manager

Address: House No. 88, Aljubarab East District 

City/Country: Gedaref, Sudan

Tel: +249900700790

E-mail: sd-tenders@mercycorps.org

Terms of Reference for Annual External Audit of Thabat AF1 (Previous Name: SOMOUD II) Project

1. Introduction 

Mercy Corps Europe wishes to engage the services of an audit firm for the purpose of auditing the above project as stipulated in the agreement between Mercy Corps Europe and The Bank. The audit shall be carried out in accordance with international audit standards issued by IAASB. The audit shall be carried out by an external, independent and qualified auditor.

2. Objectives and Scope of the Audit

The objective is to audit the annual financial report for the period 20-Jan-2025 to 31-December- 2025 as submitted to The World Bank and to express an audit opinion according to ISA 800/805 on whether:

• The financial report prepared by Mercy Corps Europe for the project is in accordance with The Bank’s instruction for financial reporting as stipulated in the agreement including appendices between The Bank and Mercy Corps Europe.
• The Project funds provided by The Bank have, in all material respects, been used in conformity with the applicable Contractual Conditions

3. Additional Assignment: According to the Agreed Upon Procedures ISRS 4400, review the following areas in accordance with the Terms of Reference below

Determining the sample size:

The Expenditure Coverage Ratio (‘ECR’) represents the total amount of expenditure verified by the Auditor expressed as a percentage of the total amount of expenditure reported by Mercy Corps Europe in the financial report. The auditor ensures that the overall ECR is at least 30%.

If the auditor finds an exception rate of less than 10% of the total amount of expenditure verified (i.e. 3%) the auditor finalizes the verification procedures and continues with reporting.

If the exception rate found is higher than 10% the Auditor extends verification procedures until the ECR is at least 40%. The auditor then finalizes verification procedures and continues with reporting regardless of the total exception rate found.

Preparation of annual financial statements

The project is responsible for the preparation of financial statements including adequate disclosure. It is also responsible for the selection and application of accounting policies; the project would prepare the PFSs in accordance with applicable financial reporting standards

The auditor is responsible for forming and expressing opinions on the financial statements. The auditor would carry out the audit of the project under the International Standards on Auditing (ISA), as promulgated by the International Federation of Accountants (IFAC). As part of the audit process, the auditor may request from the implementing agency written confirmation concerning representations made in connection with the audit.

Mandatory assignments:

The following mandatory assignments will be undertaken, and apply to all expenditure reported in the financial report, including Mercy Corps and implementing partner expenditure:

1. Reviews Terms and Conditions of Grant Agreement and Annexes to obtain a sufficient understanding of the project and of the Terms and Conditions of the Grant Agreement and Annexes and the Project Implementation Manual (PIM).
2. Verifies that the Financial Report complies with the conditions of the Grant Agreement notably with the special clauses of the Grant Agreement, with due attention to economy and efficiency, and the use of the project funds only for the purposes for which the financing was provided.
3. Performs analytical review of expenditure headings/groupings/sector in the Financial Report and verifies that expenditure for a transaction has been classified accordingly following the format in the approved budget.
4. Examines whether the financial report includes a comparison, for every budget heading, between the actual costs/expenditures of activities and the budgeted costs/expenditures as approved by The Bank for the period, and that expenditure is incurred in line with contractual budget flexibility.
5. Verifies that the correct exchange rates have been applied for currency conversions where applicable following the conditions of the Grant Agreement or Mercy Corps Europe policy.
6. Based on materiality and risk, examines whether there is supporting documentation related to incurred costs. Regardless of materiality of the findings the auditor shall quantify the amount for costs lacking sufficient supporting documentation.
7. Examines whether the project flow of funds complies with the agreement terms and financial reporting prepared by Mercy Corps Europe.
8. Reviews if outgoing balance for previous period is the same as incoming balance for the current period. 
9. Verifies the unspent balance at the end of the financial year against accounting records and its supporting documentation.
10. Verifies the unspent balance that shall be repaid to The Bank in the final report of the last agreement year. (Only applicable in the final report of the last agreement year)
11. Verifies Mercy Corps Europe’s compliance with the applicable tax legislation with regard to taxes and social security fees.
12. Verifies whether Mercy Corps Europe has adhered to the procurement guidelines annexed or referred to in the agreement.
13. Counterpart funds/matching funds (if any) have been provided and used following the relevant financing agreements, with due attention to economy and efficiency, and only for the purposes for which they were provided.
14. All necessary supporting documents, records, and accounts have been maintained in respect of all project activities, including expenditures reported using the Interim Unaudited Financial Reports (IFRs) method of reporting. The auditor is expected to verify that respective reports issued during the period agreed with the underlying books of account.
15. Assets procured from project funds exist and there is verifiable ownership by the Project implementing unit (PIU) or beneficiaries in line with the financing agreement.
16. In complying with International Standards on Auditing, the auditor is expected to pay particular attention to the following matters:

1. Fraud and Corruption: Consider the risks of material misstatements in the financial statements due to fraud as required by ISA 240: The Auditor’s Responsibility to Consider Fraud in an Audit of Financial Statements. The auditor is required to identify and assess these risks (of material misstatement of the financial statements) due to fraud, obtain sufficient appropriate audit evidence about the assessed risks; and respond appropriately to identified or suspected fraud.
2. Laws and Regulations: In designing and performing audit procedures, evaluating and reporting the results, consider that noncompliance by the implementing agency with laws and regulations may materially affect the financial statements as required by ISA 250: Consideration of Laws and Regulations in an Audit of Financial Statements;
3. Governance: Communicate audit matters of governance interest arising from the audit of financial statements with those charged with governance of an entity as required by International Standards on Auditing 260: Communication of Audit Matters with those Charged with Governance.
4. Risks: To reduce audit risk to an acceptable low level, determine the overall responses to assessed risks at the financial statement level, and design and perform further audit procedures to respond to assessed risks at the assertion level as required by Internal Standard on Auditing 330: the Auditor’s Procedures in Response to Assessed Risks.

17. The auditor should also examine eligibility and correctness of:

• Financial transactions during the period under review.
• Account balances at the end of such a period.
• The adequacy of internal controls for the type of disbursement mechanism.

4. Project Financial Statements (PFSs)

The auditor should verify that the project PFSs have been prepared in accordance with the agreed accounting standards (as indicated above) and give a true and fair view of the financial position of the project at the relevant date and of resources and expenditures for the period ended on the project closing date.

The Project Financial Statements (PFSs) should include:

(a)   A statement of funds received, showing funds from the World Bank and of expenditures incurred.

(b) A Summary of the principal accounting policies that have been adopted, and other explanatory notes.

(c) A list of material assets acquired or procured to date with project funds

As an Annex to the PFSs, the auditor should prepare a reconciliation of the amounts as “received by the Project from the World Bank”, with those shown as being disbursed by the Bank.

Optional assignments to be included where applicable:

Follows up on whether Mercy Corps Europe has implemented the following recommendations from the previous audit of the project: [xxx], [xxx] and [xxx].

Limitation to the above:

Within the project budget, for the budget lines section ‘HQ/Regional Program Support Costs’ related to global and regional team support, the verification of the financial report related to these budget lines will be limited in scope to a verification that the actual total expenditure allocated to ‘HQ/Regional Program Support Costs’ does not exceed the overall budget for those budget lines. The Bank confirmed in the Agreement and Annexes that the purpose of auditing the overall amount in the budget section ‘HQ/Regional Program Support Costs’ is to ensure that Mercy Corps’ total actual expenditure does not exceed the overall budget amount and that no detailed audit of the expenditure within these budget lines is required. There will be no sampling or audit needed of supporting documentation for the expenditure within these budget lines.

5. Follow up of funds that are channeled to implementing partners

In addition to the above mandatory assignments which also apply to expenditure reported by implementing partners:

1. Review whether Mercy Corps Europe has signed sub agreements with its implementing partner organizations.

2. Review whether Mercy Corps Europe has followed up on grants according to the requirements under the Grant Agreement and Appendices to the agreement. 

3. Review whether there is an unbroken chain of financial reports according to the requirements as stipulated in the agreement between Mercy Corps Europe and The Bank, for funds disbursed the previous year.

6. The Reporting 

The reporting shall be signed by the responsible auditor (not just the audit firm) and shall include the title of the responsible auditor. 

The reporting from the auditor shall include an independent auditor’s report in accordance with the format in standard ISA 800/805 and the auditor’s opinion shall be clearly stated. The independent auditor’s report shall clearly stipulate that the audit has been conducted in accordance with ISA 800/805. The reporting shall also include a Management Letter that discloses all audit findings (significant and other findings), as well as weaknesses identified during the audit process. The financial report that has been subject of the audit shall be attached to the audit reporting. The auditor shall make recommendations to address the identified findings and weaknesses. The recommendations shall be presented in priority order. 

If the auditor assesses that no findings or weaknesses have been identified during the audit that would result in a Management Letter, an explanation of this assessment must be disclosed in the Management Letter itself as no reportable instances of irregularities were come to the auditor’s notice.

The Management Letter should:

(a)   Identify specific deficiencies or areas of weakness in systems and controls and make recommendations for their improvement.

(b)   Communicate matters that have come to his/her attention during the audit which might have a significant impact on the implementation of the project.

(c)   Give comments on the extent to which outstanding issues/qualifications issues have been addressed.

(d)   Bring to the recipient’s attention any other matters that the auditor considers pertinent, including ineligible expenditures.

(e)   Give comments on previous audits’ recommendations that have not been satisfactorily implemented.

(f)    Bring to the recipient’s attention any other matters that the auditor considers pertinent, including ineligible expenditures.

(g)   Give comments and observations on the accounting records, systems and controls that were examined while the audit.

(h)   Include responses from the implementing entity’s management to the issues highlighted by the auditor.

Measures taken by the organization to address weaknesses identified in previous audits shall also be presented in the Management Letter. 

7. Available Information

The auditor should have access to all legal documents, correspondences, and any other information associated with the project and deemed necessary by the auditor. The auditor will also obtain confirmation of amounts disbursed and outstanding at the Bank. Available information should include copies of the relevant: project appraisal document; financing agreement; financial management assessment reports; supervision mission reports and implementation status reports, project financial management manual, Procurement manual, Project Implementation Manual, and TPI contract agreement.

8. Additional Assignment

The additional assignment according to the agreed upon procedures ISRS 4400 under section II, shall be reported separately in a “Report of factual findings”. The size of the sample reviewed shall be stated in the report.

9. Auditor’s Qualifications

The audit firm shall propose a suitably qualified audit team with the minimum structure and credentials outlined below:

• Engagement Partner: Professionally qualified (CPA, ACCA, or CA) with at least 10 years of post‑qualification audit experience, including a minimum of 3 years leading audits of World Bank or any donor‑funded projects. The Engagement Partner shall have overall responsibility for the assignment and shall sign the audit opinion.
• Audit Manager: Professionally qualified (CPA, ACCA, or CA) with at least 7 years of relevant audit experience, including experience managing public‑sector or any donor‑funded audit assignments.
• Audit Supervisor / Senior Auditor: Professionally qualified or finalist with a minimum of 4 years of relevant audit experience.
• Audit Associates: Appropriately qualified audit staff with relevant academic background and practical audit training.

The technical proposal shall include curriculum vitae (CVs), copies of professional certifications, and a responsibility matrix clearly indicating the proposed level of effort for each team member.

Estimated Professional Inputs

For proposal comparability purposes, the Client provides the following indicative level of effort for the assignment. Bidders may propose alternative allocations with appropriate justification:

Remark: The above professional inputs are indicative only; hence, the audit firm is free to propose additional personnel which they deemed necessary to carry out the required service.

10. Duration of the Audit Engagement

The audit engagement is expected to be completed within a period of four (4) to six (6) weeks from the agreed fieldwork start date, following contract signature and the kick‑off meeting.

11. Deliverables and Reporting Schedule

• Kick‑off meeting: Within 5 business days of contract award.
• Audit planning and PBC (Provided by client) request list: Within 2 weeks of contract signature.
• Fieldwork completion: Between weeks 2 from contract signature.
• Submission of draft audit report, draft project financial statements, draft management letter, and agreed‑upon procedures report: Within 15 calendar days after completion of fieldwork.
• Management responses: Within 10 calendar days of receipt of draft reports.
• Final signed audit reports: Within 10 calendar days after receipt of management responses and no later than 22 June 2026.