Consultancy Services for Conversion of GAAP Financials ERP to IPSAS and Preparation for the 2026 Compiled Audit _@Three Roots International Ethiopia

Introduction

Three Roots International (TRI) invites qualified and eligible consulting firms or consultants to submit Technical and Financial Proposals for the provision of consultancy services to support the conversion of its current GAAP Financials ERP accounting and financial reporting framework to the International Public Sector Accounting Standards (IPSAS) and to prepare the organization for the 2026 Compiled Audit.

Three Roots International (TRI) is an international nonprofit organization registered by the Authority for Civil Society Organizations (ACSO) under Registration No. 4931. TRI’s mission is to cultivate community development and economic capacity by empowering families through education, health, and income-generating activities. Since its establishment, TRI has worked in partnership with rural communities to reduce extreme poverty through programs implemented in Ethiopia, particularly in the Bishoftu area.

The consultancy is intended to strengthen TRI’s financial reporting framework by ensuring compliance with IPSAS, enhancing the organization’s financial management systems, supporting audit readiness, and building the capacity of finance staff to sustain IPSAS-compliant financial reporting.

The Terms of Reference (TOR) contained in this document provide the detailed background, objectives, scope of work, expected deliverables, consultant qualifications, proposal submission requirements, evaluation criteria, reporting arrangements, payment schedule, and other conditions governing this consultancy assignment.

Background

Three Roots International (TRI) is a nonprofit organization committed to maintaining high standards of financial management, accountability, and transparency. The organization currently uses GAAP Financials ERP for financial recording and reporting. To strengthen compliance with internationally recognized public sector accounting standards and improve the quality of financial reporting, the organization seeks to transition its accounting and financial reporting framework to the International Public Sector Accounting Standards (IPSAS).

The organization also intends to ensure that its financial records, reporting processes, and supporting documentation are fully prepared for the 2026 compiled audit. Accordingly, TRI seeks to engage a qualified consultant with demonstrated expertise in IPSAS implementation, ERP accounting systems, and audit readiness.

2. Objective of the Consultancy

The overall objective is to support the organization in:

• Converting the accounting records and financial reporting framework from the current GAAP Financials ERP configuration to IPSAS-compliant reporting.
• Reviewing and aligning the Chart of Accounts with IPSAS requirements.
• Preparing IPSAS-compliant financial statements.
• Building the organization’s capacity to sustain IPSAS-compliant financial reporting.
• Preparing complete financial records and supporting documentation for the 2026 compiled audit.

3. Scope of Work

The consultant shall undertake, but not be limited to, the following activities:

A. Assessment

• Review the current accounting policies, procedures, and financial reporting practices.
• Assess the existing GAAP Financials ERP configuration.
• Conduct a gap analysis between current accounting practices and IPSAS requirements.
• Review the current Chart of Accounts and recommend required modifications.

B. IPSAS Conversion

• Develop an IPSAS conversion methodology and implementation plan.
• Reclassify and adjust account balances where necessary.
• Align accounting treatments with applicable IPSAS standards.
• Update accounting policies and procedures to comply with IPSAS.
• Ensure financial statements comply with IPSAS disclosure requirements.

C. ERP Configuration Support

• Recommend changes required within GAAP Financials ERP to support IPSAS-compliant reporting.
• Map existing accounts to the revised IPSAS Chart of Accounts.
• Develop templates and reporting formats required under IPSAS.
• Verify that financial reports generated from the ERP are IPSAS compliant.

D. Audit Readiness

• Review supporting documentation for completeness.
•  Prepare audit schedules and reconciliations.
• Ensure all balance sheet accounts are reconciled.
• Resolve outstanding accounting issues affecting the audit.
• Prepare complete audit working papers.
• Support management during preparation for the 2026 compiled audit.
• Respond to audit queries related to the IPSAS conversion, where required.

E. Capacity Building

• Train finance staff on IPSAS principles and implementation.
• Train staff on IPSAS-compliant reporting using GAAP Financials ERP.
• Provide practical guidance on maintaining IPSAS compliance after completion of the assignment.

4. Expected Deliverables

The consultant shall submit the following deliverables:

1. Inception Report including methodology, work plan, and implementation schedule.
2. Gap Assessment Report identifying differences between current accounting practices and IPSAS.
3. IPSAS Conversion Report detailing all adjustments and conversion entries.
4. Revised IPSAS-compliant Chart of Accounts.
5. Updated Accounting Policies and Procedures Manual.
6. IPSAS-compliant financial statements.
7. ERP account mapping and reporting templates.
8. Complete audit readiness file including reconciliations and supporting schedules.
9. Training materials and user guidance.
10. Final Consultancy Report summarizing activities undertaken, deliverables completed, challenges encountered, and recommendations.

5. Duration of the Assignment

The consultancy is expected to be completed within 8 to 12 weeks from the date of contract signing. A detailed implementation schedule shall be agreed upon during the inception phase.

6. Reporting Arrangements

The consultant will work closely  and report to the Finance and Admin Lead and supporting teams. Progress meetings shall be conducted regularly to review implementation status and address emerging issues with the national Director and with Finance & Admin Lead.

Required Qualifications and Experience

The consultant or consulting firm shall demonstrate the following minimum qualifications and experience:

• Be legally registered and authorized to provide accounting and financial consulting services in Ethiopia.
• Be licensed and in good standing with the Accounting and Auditing Board of Ethiopia (AABE), with a valid practicing license.
• Hold recognized professional accounting qualifications such as ACCA, CPA or other internationally recognized equivalent qualifications.
• Have a minimum of seven (7) years of progressively responsible professional experience in financial management, accounting advisory services, or public sector/nonprofit financial reporting.
• Demonstrate proven experience in the implementation and application of International Public Sector Accounting Standards (IPSAS), including IPSAS conversion assignments.
• Have substantial experience in reviewing, redesigning, and implementing Charts of Accounts aligned with IPSAS and organizational reporting requirements.
• Demonstrate practical experience with ERP-based accounting systems, preferably GAAP Financials ERP or comparable enterprise financial management systems, including system configuration, account mapping, and reporting.
• Have proven experience in preparing IPSAS-compliant financial statements, financial reporting packages, and supporting disclosures.
• Demonstrate experience in audit readiness, including preparation of audit working papers, reconciliations, supporting schedules, and responding to audit queries.
• Have experience providing capacity-building, coaching, and practical training for finance personnel on IPSAS implementation and financial reporting.
• Demonstrate strong knowledge of nonprofit and donor-funded financial management practices, internal controls, and applicable regulatory requirements.
• Possess excellent analytical, problem-solving, report-writing, facilitation, and stakeholder engagement skills.
• Be able to assign qualified personnel with expertise in accounting, ERP systems, IPSAS implementation, and audit support throughout the assignment.
• Demonstrated successful completion of at least three (3) similar IPSAS implementation or financial reporting assignments.
• Availability of a multidisciplinary team with expertise in IPSAS, ERP systems, financial reporting, and audit readiness.
• Ability to provide references and completion certificates or client recommendation letters for similar assignments.

8. Required Proposal Submission

Interested consultants shall submit:

• Technical Proposal describing methodology and work plan.
• Financial Proposal.
• Company profile or consultant profile.
• Curriculum Vitae of key personnel.
• Evidence of similar assignments completed.
• At least three professional references.

9. Evaluation Criteria

Technical proposals will be evaluated based on:

• Understanding of the assignment.
• Methodology and implementation approach.
• Relevant experience with IPSAS implementation.
• Experience with ERP accounting systems.
• Qualifications of proposed personnel.
• Similar assignments successfully completed.
• Financial competitiveness.

10. Confidentiality

The consultant shall maintain strict confidentiality of all financial records, organizational information, and documents accessed during the assignment. No information may be disclosed without prior written authorization from the organization.

11. Payment Schedule

Payments may be linked to successful completion of agreed milestones, for example:

• 30% upon approval of the Inception Report and upon completion of the IPSAS gap assessment and conversion plan.
• 30% upon delivery of IPSAS-compliant financial statements and audit readiness documentation.
• 40% upon submission and acceptance of the Final Report and completion of staff training.

12. Ownership of Deliverables

All reports, financial statements, manuals, templates, working papers, training materials, and other outputs produced under this consultancy shall become the sole property of TRI