Terms of Reference (TOR) For IPSAS Conversion Project for First Consult Development

1. BACKGROUND

First Consult Development (FCD) is a local non-profit organization established in 2022 to improve the lives and livelihoods of disadvantaged citizens, create employment opportunities, increase economic productivity, competitiveness and support women and children.

Our multidisciplinary teams leverage local expertise to drive enterprise growth, improve access to finance, and foster skill development. With a proven track record, we’ve successfully created jobs, generated wealth, and attracted investments, ultimately leading to the formation and growth of thriving businesses.

The purpose of this Terms of Reference (TOR) is to outline the objectives, scope, responsibilities, and timelines for the conversion of financial reporting from the generally accepted accounting principles (GAAP) to the International public sector accounting Standards (IPSAS).

2. OBJECTIVE OF THE ASSIGNMENT

The primary objective of the assignment is to ensure compliance with globally accepted accounting standards by transitioning from generally accepted accounting principles (GAAP) to IPSAS. This transition aims to improve transparency, comparability, and reliability of financial statements for internal and external stakeholders, while simultaneously providing necessary training and technical support to staff to facilitate a smooth transition to IPSAS. This TOR outlines the key aspects of the IPSAS conversion project and sets the foundation for a structured and systematic approach to ensure a successful transition. Regular review and adjustments will be made as necessary to achieve the project’s objectives within the agreed timelines.

3. SCOPE OF WORK

• The service provider shall perform the following tasks:
• Review current accounting policies, procedures, and systems to identify areas requiring changes or modifications to align with IPSAS.
• Assess the impact of IPSAS adoption on financial statements, including balance sheets, income statements, cash flow statements, and related disclosures.
• Develop an implementation plan outlining key milestones, tasks, and responsible parties for the conversion process.
• Conduct training sessions for relevant staff members to ensure understanding and proficiency in applying IPSAS principles.
• Perform a comprehensive risk assessment to mitigate potential challenges during the conversion process.
• Communicate progress updates and key findings to stakeholders at regular intervals.

4. SPECIFIC ACTIVITIES

• Provide overall guidance, support, and necessary resources for the successful completion of the IPSAS conversion project.
• Oversee and coordinate all project activities, ensuring adherence to timelines and objectives.
• Review existing accounting policies and procedures, analyze the impact of IPSAS on financial statements, and assist in the implementation process.
• Assess and make necessary changes to accounting systems to accommodate the transition to IPSAS.
• Develop and conduct training programs to equip staff with the required skills and knowledge for IPSAS compliance.
• Provide expertise, guidance, and support in interpreting and applying IPSAS principles.

5. TIMELINE

All deliverables shall be completed based on the detailed project schedule proposed by the Firm in the inception report and formally signed off by both parties.

6. WORKING ARRANGEMENT AND REPORTING

The service provider will be working under a contract with First Consult Development (FCD). They will report directly to the Finance Manager.

Progress reports shall be submitted to the management on a regular basis, highlighting achievements, challenges, and upcoming milestones. The service provider is expected to work within the required deadlines and be available in accordance with schedule, which can be adapted as needed.

7. EVALUATION CRITERIA

• Candidates who scored below 50% on the technical evaluation will not be considered for financial evaluation.

9. INSTRUCTIONS FOR THE TECHNICAL AND FINANCIAL PROPOSAL

Interested firms shall send a technical and financial proposal detailing the experience and qualifications of the firm to execute the assignment. The potential firm should prepare a budget based on the proposed methodology and resources required for the assignment.