TERMS OF REFERENCE (TOR) for Conversion of Financial Systems of Link Community Development Ethiopia to IPSAS

About LINK COMMUNITY DEVELOPMENT

Link Community Development International (Link) is an International NGO based in the UK working to transform education for children and communities across impoverished rural areas of Ethiopia, Ghana, Malawi, Rwanda and Uganda through innovative, low-cost and replicable models. Link Community Development Ethiopia (registered in Ethiopia as a foreign NGO). It is registered with Agency For Civil Society Organizations with licence number 1017 is a branch of Link Community Development International and is implementing the Supporting Transition of Adolescent Girls through Enhancing Systems (STAGES) project as part of the United Kingdom’s Department for International Development’s (DFID) Girls’ Education Challenge-Transition (GEC-T) in the Wolaita Zone of the Southern Nations Nationalities and Peoples Region (SNNPR).

Link aims do conversion its financial systems and Financial management procedures in to International Public Sector Accounting Standards (IPSAS) by revising and updating of the existing Financial Systems.

Therefore, Link Community Development Ethiopia (LCDE) is seeking to employ competent Firms who are interested to carry out IPSAS conversion.

Objective of Assignment

The main objectives of the assignment are:

• To support implementation of IPSAS in preparing the annual financial statements of LCDE by providing required technical assistance, detail gap analysis building on the previous exercises, develop Road map for IPSAS implementation,
• Providing required capacity building and recommending modifications in information system/ software, policy, processes and other required changes as deemed necessary.
• Work with LCDE in preparing the annual financial statements of the Year ended 31 December 2019 based on IPSAS.

General Scope of the Assignment

• Conduct Gap analysis and develop Roadmap for IPSAS implementation
• Exercise a detail diagnosis and identify gaps for IPSAS adoption.
• Analyse all relevant aspects – capacity, policies, procedures, regulatory, information system/ software etc. including review of existing chart of accounts and alignment with IPSAS adoption.
• Develop comprehensive roadmap with specific actions, timeline incorporating all relevant aspects as above.
• Further support LCDE in consultation external auditors and get unqualified audit opinion with regards to IPSAS conversion including standards that are not effective yet and can allow early adoption and thereafter incorporate the comments given and finalize the financial statements.
• Develop manuals/ guidelines/ templates/ checklists as required to guide IPSAS implementation.
• Assist LCDE in preparing IPSAS based annual financial statements for FY 2019 with required opening balances/ conversions.
• Training and workshops
• Develop training materials including training modules.
• Train accountants and other relevant personnel for IPSAS adoption.
• Team Composition & Qualification Requirements for the Key Experts (and any other Requirements

Consultant's Qualifications and Experience

• Consulting Firm: -The consulting firm should have the following qualifications and experience to carry out the assignment
• Renewed Company/Firm/Business registration certificate
• VAT registration
• Tax clearance certification
• General experience: At least of 3 Years in the field of financial accounting and Auditing in the public/ private sector
• Specific experience: The consultant must have considerable experience in the field of international public/ private sector financial reporting standards (i.e. IPSAS/ IFRS) and at least 2 years of experience (during job or as independent) in the field of development /application of accounting.
• Special Requirement as advantage: Consultant having experience with similar assignments (IPSAS conversion) shall have added advantage.

 Qualification of Team members

• Team Leader (One)
• Chartered Accountant, CPA, ACCA or equivalent.
• IPSAS professional qualification from the Chartered Institute of Public Finance and Accountancy (CIPFA) or similar recognized body will an added advantage.
• Experience: At least of 10 years’ experience in the field of financial accounting and auditing of which at least 5 years in the public/private sector. Should have experience of at least one assignment as team leader/project manager in the last three years.

Expert (One)

• Chartered Accountant, CPA, ACCA or equivalent.
• IPSAS professional qualification from the Chartered Institute of Public Finance and Accountancy (CIPFA) or similar recognized body will be an added advantage.
• Experience: At least of 5 years’ experience in the field of financial accounting and auditing of which at least 2 years in the public sector. Should have experience of at least one similar assignment in a key position.

The consulting firm may engage additional support staff in proportion to the work as assessed by them.