Terms of Reference (TOR) for IPSAS Consultancy Service 47 views

Introduction

Ethiopian Society of Sociologists, Social Workers and Anthropologists (ESSSWA) is a professional association of Sociologists, Social Workers and Anthropologists, founded in 1996. Since its establishment, ESSSWA has successfully managed different projects and currently has been implementing two big projects in collaboration with USAID, UNICEF and government partners with the objective of establishing a responsive social service system all over the country.

Ethiopia has already embarked on adopting International Financial Reporting Standards (IFRS) and International Public-Sector Accounting Standards (IPSAS) formally in its accounting system by issuing proclamation No.847/2014 for financial reporting and regulation No. 332/2014 “for the establishment and determination of the procedure of the accounting and auditing board of Ethiopia.”

As per the IFRS adoption roadmap determined by the Accounting and Auditing Board of Ethiopia, transition to IFRS/IPSAS adoption and reporting for all not-for-profit organizations operating in Ethiopia is scheduled to take place starting 2010/2011 Ethiopian Fiscal Years, respectively. These legislation and rules, therefore prescribe the country’s legal framework for preparation of the Annual Financial Statements (AFS) which have been consistently applied over time.

To meet the revised reporting requirement using IPSAS, ESSSWA is looking for a consulting firm for the conversion to IPSAS.

Objective of the consultancy Work

The main objectives of the assignment are:

• To support implementation of accrual basis IPSAS in preparing the annual financial statements of ESSSWA by providing required technical assistance, detail gap analysis, develop roadmap for accrual basis IPSAS implementation.
• To support implementation of cash basis IPSAS in preparing the annual financial statements of ESSSWA by providing required technical assistance, detail gap analysis building on the previous exercises, develop Roadmap for Cash-basis IPSAS implementation,
• Providing required capacity building and recommending modifications in information system/software, policy, processes and other required changes as deemed necessary.
• To introduce the theory and principles of IPSAS to ESSSWA staff about the International Public Sector Financial Reporting Standards requirements and Government of Ethiopia financial reporting proclamation.
• Provide capacity building training to ESSSWA finance staff on IPSAS so that ESSSWA will be able to comply to all standard provisions, reporting requirements, reporting schedules, and documentations in the forthcoming reporting periods.

Expected Deliverables

Technical assistance to ESSSWA

• Conduct Gap analysis and develop Roadmap for IPSAS implementation that:
• Build on benchmarking exercise and identifying gaps for Cash-basis IPSAS adoption.
• Analyze all relevant aspects – capacity, policies, procedures, regulatory, information system/ software etc.
• Develop comprehensive roadmap with specific actions, timeline and responsible agencies incorporating all relevant aspects as above.
• Analyzes pre-requisites for accruals IPSAS adoption in the longer term and recommends measures, on aspects as above, to be taken for preparation of such adoption in the longer term.
• Assist ESSSWA in providing handholding support on implementation of the developed roadmap.

Training and workshops

• Develop training materials including e-training modules based on requirement of the Department of Public Accounts/Ministry of Finance.
• Train accountants and other relevant personnel of ESSSWA’s staffs.

• General experience: A minimum of 3 Years in the field of financial accounting and accounting in the NGO sector particularly NGO’s experience is preferred.
• Specific experience: The consultant must have considerable experience in adopting and implementing International Public-Sector Accounting Standards (IPSAS) and/ or International Financial Reporting Standards (IFRS) for minimum of two years.
• Consultant having experience in the application of IPSAS in non-governmental organizations/NGO shall have added value.
• Consultants having trade license renewed and VAT registration number and tax identification number.