Bid Announcement _ IPSAS Adoption – Ethiopian Diabetes Association, Ethiopia

Background

The Ethiopian Diabetes Association was a nongovernmental resident Charity organization which established on January 23, 1984 G.C and re-registered with certificate number 0894 in 2019 as per the new charities and society proclamation of 1113/2019. 

Ethiopian Diabetes Association needs to outsource the process of transitioning from the current practice of using Generally Accepted Accounting Practices (GAAP) to International Public Sector Accounting Standards (IPSAS) in order to comply with Proclamation No 847/2014.

Objectives

• To provide required technical assistance on the implementation of IPSAS in preparing the annual financial statements, conduct detail gap analysis building on the previous exercises, and develop Roadmap for full conversion to IPSAS.
• To provide required capacity building and recommending modifications in information system/ software, policy, processes and other required changes as deemed necessary.
• To work with Ethiopian Diabetes Association in preparing the annual financial statements for FY 2020 and 2021 based on IPSAS requirements.
•  To work with Ethiopian Diabetes Association in preparing the annual financial statements of 2022 based on IPSAS requirements.

Scope

Conduct Gap analysis and develop Roadmap for IPSAS implementation that:

• Exercise a detail diagnosis and identify gaps for IPSAS adoption.
• Analyze 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 for Ethiopian Diabetes Association 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 Ethiopian Diabetes Association in preparing IPSAS based annual financial statements for FY 17/18 and 18/19 with required opening balances/ conversions.
• Assist Ethiopian Diabetes Association in preparing IPSAS based annual financial statements for FY 19/20
• Technical Assistance Ethiopian Diabetes Association finance team during the adoption process.
• The firm shall engage competent consultants and must provide a continuous support to in-house IPSAS conversion team.
• The consultant must clear all audit comments related to IPSAS implementation for the period covering first IPSAS based Financial Statements

Deliverables

Ethiopian Diabetes Association expects to receive the below deliverables from this assignment

Soft and hard copy of revised Ethiopian Diabetes Association Finance Policy/Manual

• Detail diagnosis, diagnostic report including Gap Analysis and road map to IPSAS conversion
• IPSAS based accounting Policies/Manuals/ Guidelines/Templates/Checklists and training  materials
•  Prepare IPSAS based draft reports for FY 2020 FY 2021 & FY 2022
• Ongoing support and updates up- to the closing of Financial statements, Rectifying external auditor comment and secure unqualified audit report with regard to IPSAS conversion
• Closure Report with summary of activities carried out, lessons learnt and recommendations

EVALUATION CRITERIA

Composition of Technical and Financial Proposal

The technical and financial proposals of the consultant shall be submitted in separate envelope

Technical Proposal Scoring Criteria Points

• Consultant’s experience specific to assignment 30
• Approach and methodology for the assignment 30
• Work Plans 10
• Organization and staffing 10
• Relevance and qualification of team leader 10
• Other staff’s qualification 10
• Total 100

Note that the technical criteria shall take 70% of the total, while financial offer shall take the remaining 30%.

Timelines

The consultant is expected to come up with a realistic plan to finish the process in a shortest time possible.

Eligibility Criteria

Profile of the firm

• General experience: At least of 3 Years in the field of financial accounting and accounting in the NGO sector.
• Specific experience: The consultant must have considerable experience in adopting and implementing International Financial Reporting Standards (IFRS) including IPSAS for minimum of two years
•  Consultant having experience in the application of IPSAS in non-governmental organizations/NGO shall have added value
• Applicant firms that pass the preliminary eligibility criteria must present their conversion approach to the bid evaluation team of Ethiopian Diabetes Association as part of the technical evaluation.
• Applicant firm shall provide the following business documents:
• Renewed professional license of the principal
•  VAT registration certificate
•  Renewed trade license
•  Profession certificate of key personnel

NB. (Evidence of previous work-related IPSAS manual development should be submitted with the) Consultant’s team composition.

• The team leader must have ACCA/CPA and at least of 10 years’ experience in the field of financial accounting and auditing of which at least 5 years in NGO sector
• The team leader and the other consultant’s requirements:
•  Registered/recognized by AABE or accrediting institution to provide training on IPSAS.
• BA degree in Accounting with qualified ACCA/CPA, with experience in financial management
• Have at least 2 years’ experience in the implementation of IFRS/IPSAS.
• Have experience in carrying similar assignments (testimonials for similar past work in an NGO setting to be attached with the technical proposal)
• IPSAS profession qualification from recognized body will have an added advantage.
•  Consultants must have PHD/MSC/ACCA/CPA and at least of 3 years’ experience in the field of financial accounting experience in NGO sector is a plus.