Invitation to BID for Conversion of Kefeta Youth SACCO financial reporting from GAAP to IFRS

About Amref Health Africa:

Amref Health Africa is the largest African-based and led international health development organization serving over 30 million people annually across 35 countries in sub-Saharan Africa. Strategically engaging with communities, governments, and local partners for the past 65 years, we work through our European and North American network of sister organizations on program implementation, advocacy, fundraising and partnership. Our subsidiaries include Amref Flying Doctors, Amref Enterprises Limited, and the Amref International University.

Our organization is driven by its vision to bring lasting health change in Africa and its mission to catalyze and drive community-led and people-centered health systems while addressing social determinants of health. Amref believes that the power to transform Africa’s health lies within its communities and therefore strives to ensure that health systems are functioning at an optimal level and communities are empowered to hold these systems accountable for the delivery of high-quality and affordable health care.

Amref has been active in Ethiopia since the 1960s and became fully operational as of 2002. We have been partnering with the Ethiopian government and local communities to co-create solutions and implement diverse health and development project portfolios throughout the country for over twenty years. Aligning with the national Health Sector Transformation Plan II (HSTP II), we work to ensure health equity by serving women and children, reaching the most disadvantaged, inaccessible communities including pastoralist communities and placing an emphasis on youth development.

Our programs are designed to support community level interventions while strengthening health systems at the regional and national levels. With an integrated and multi-sectoral approach, Amref strategically addresses cross-cutting issues through these programmatic focus areas.

. For more information, visit our website www.amref.org.

1.1 Background:

Kefeta Youth SACCO is a youth-owned, youth-led, and youth-managed financial institution established under Ethiopian Cooperative Proclamation No. 985/2016. The SACCO launched its first branch in Hawassa in July 2022 and was officially registered at the national level on February 14, 2024 – making it the first national youth SACCO in Ethiopia. It currently operates across 18 cities and serves over 13,500 members.

Established with support from USAID through the Integrated Youth Activity Project, implemented by AMREF Health Africa in Ethiopia, Kefeta Youth SACCO promotes youth-led economic development and financial empowerment. As a member of the Federal Cooperative Commission, the SACCO aligns its operations with cooperative principles and national financial inclusion objectives.

Currently, kefeta Youth SACCO prepare its financial statements in accordance with Generally Accepted Accounting Principles (GAAP). However, development partners, auditors, and financial stakeholders such as banks require financial statements prepared in accordance with International Financial Reporting Standards (IFRS) to enhance transparency, accountability, comparability, and financial sustainability.

Therefore, Amref Health Africa seeks to engage a qualified consultant to support the structured conversion of Kefeta youth SACCO financial reporting from GAAP to IFRS, while ensuring compliance with cooperative regulatory requirements.

2.0 Objectives

The overall objective is to support the successful transition of kefeta youth SACCO financial reporting from GAAP to IFRS, ensuring compliance, transparency, and strengthened institutional financial management capacity.

The specific Objectives include:

1. To assess gaps between existing GAAP-based accounting practices and IFRS requirements applicable to kefeta youth SACCO
2. To develop and implement kefeta youth SACCO-specific IFRS accounting policies and procedures
3. To prepare IFRS-compliant opening balances, comparative information, and first-time adoption financial statements
4. To strengthen the capacity of kefeta youth SACCO management, finance staff, boards, and control committees on IFRS reporting
5. To ensure audit readiness and sustainability of IFRS reporting beyond the consultancy period

3.Methodology

The consultant will begin by conducting a comprehensive assessment of the SACCO’s current GAAP-based financial statements, accounting policies, and reporting processes, identifying key differences between GAAP and IFRS as they relate to SACCO operations, including loans, savings, reserves, and other financial instruments. Based on this assessment, the consultant will map GAAP accounts to IFRS accounts and develop a step-by-step conversion plan, detailing adjustments for opening balances, prior periods, and reconciliations. The consultant will then restate prior period financial statements and prepare IFRS-compliant financial statements with explanatory notes, highlighting all significant adjustments. Concurrently, the finance team will be trained on IFRS principles, reporting formats, and procedures to ensure sustainable compliance, supported by practical manuals and guidelines. Finally, the consultant will submit a comprehensive report documenting the conversion process, challenges encountered, key accounting adjustments, and recommendations for ongoing IFRS reporting. The assignment is expected to be completed over approximately 6 weeks, with milestones for assessment, mapping, statement preparation, training, and final reporting.

4. Expected Deliverables

The consultancy firm shall deliver:

1.IFRS Conversion Inception Report

A comprehensive inception report outlining the conversion approach, scope of work, applicable IFRS standards for kefeta youth SACCO, implementation timeline, staffing plan, risk assessment, stakeholder engagement strategy, and detailed work plan approved by kefeta youth SACCO management.

2.GAAP–IFRS Gap Analysis and Impact Assessment Report

A detailed diagnostic report comparing current GAAP-based accounting policies and practices with applicable IFRS requirements. The report shall identify gaps, quantify financial impacts, and highlight kefeta youth SACCO-specific issues such as loan impairment (ECL), member shares classification, revenue recognition, fixed assets, and financial statement presentation.

3.IFRS Accounting Policies and Procedures Manual

A customized IFRS accounting policy manual aligned with IFRS 1 (First-time Adoption) and other applicable standards. The manual shall include kefeta youth SACCO-specific policy elections, measurement bases, recognition principles, disclosure requirements, and board-approved accounting treatments.

4.Revised Chart of Accounts and System Mapping Document

An updated IFRS-compliant chart of accounts mapped from existing GAAP accounts, including guidance for system configuration, internal controls, and reporting structures to support IFRS-based financial reporting.

5.Opening IFRS Statement of Financial Position

A complete and reconciled opening IFRS balance sheet at the transition date, including all required adjustments to assets, liabilities, equity, income, and expenses, supported by detailed working papers and reconciliation schedules from GAAP to IFRS.

6.Restated Comparative Financial Statements

IFRS-compliant restatement of prior-period GAAP financial statements for comparative purposes, including reconciliation statements explaining material differences between GAAP and IFRS figures.

7.IFRS-Compliant Financial Statements and Disclosures

A full set of kefeta youth SACCO IFRS financial statements including statement of financial position, statement of surplus or deficit, statement of changes in equity, statement of cash flows, and comprehensive notes and disclosures.

8.Capacity Building and Knowledge Transfer Outputs

Delivery of structured IFRS training sessions for finance staff, management, board members, and control committees, supported by training materials, job aids, and practical examples tailored to kefeta youth SACCO operations.

9.Audit Support and Issue Resolution Report

Technical support provided during external audit or regulatory review of IFRS financial statements, including responses to audit queries and documentation of resolved issues.

10.IFRS Sustainability and Compliance Roadmap

A post-conversion roadmap outlining ongoing compliance mechanisms, required policy updates, staff capacity needs, system improvements, and monitoring of new or amended IFRS standards relevant to kefeta youth SACCO.

Total Duration: 45 days (6 weeks).

Total Duration: The assignment is expected to be completed within 6 weeks starting from the sign date of the agreement.

5. Specific tasks to be done by the consultant

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

• Conduct an inception phase including stakeholder consultations and review of existing financial systems, policies, and reports
• Perform a comprehensive GAAP-to-IFRS gap analysis and financial impact assessment relevant to SACCO operations
• Develop kefeta youth SACCO-specific IFRS accounting policies in accordance with IFRS 1 and applicable IFRS/IAS standards
• Review and revise the chart of accounts and accounting system mappings to support IFRS reporting
• Prepare the opening IFRS statement of financial position at the transition date
• Restate comparative financial information in compliance with IFRS requirements
• Prepare a full set of IFRS-compliant financial statements with required disclosures
• Deliver capacity-building training for finance staff, management, boards, and control committees
• Provide technical support during external audit and regulatory review processes
• Develop a sustainability roadmap for ongoing IFRS compliance and institutionalization

6. Period for Submission and deliverables

• The consultancy firm or team should follow the overall time frame of 6 weeks starting from signing of the agreement to the finalization of report (incorporating all changes and requests from Amref and kefeta Youth SACCO).
• The consultancy firm will submit and present the inception report (deliverable 1) that clearly defines the methodologies, work plan and team structure in the first week following signing the contract.
• A detailed diagnostic report comparing current GAAP-based accounting policies and practices with applicable IFRS requirements (deliverable 2) and a customized IFRS accounting policy manual aligned with IFRS (deliverable 3) will take place in the second week following signing of the contract.
• By the end of the fifth week, deliverables 4 to deliverable 5 will be completed.
• By end of sixth -week capacity building support or training will be provided and final completion report along with recommendation will be submitted to Amref and Kefeta youth SACCO.
• The consultant shall report to Kefeta Youth SACCO CEO and work under the strategic oversight of designated steering committee by Amref health Africa.
• The consultant will provide regular progress updates on key deliverables and work progress to Amref health Africa.

7. Required Experience

The consulting firm must demonstrate:

• Professional qualification in accounting or finance (ACCA, CPA, CA, or equivalent)
• Demonstrated expertise in IFRS implementation for SACCOs
• Proven experience in financial reporting or advisory services for SACCOs, cooperatives, MFIs, or financial institutions

Key Expert Requirements

• Lead IFRS Expert with at least 5 years of relevant professional experience
• Strong knowledge of IFRS and financial reporting
• Experience in delivering training and capacity-building for non-bank financial institutions
• Strong analytical, communication, and report writing capabilities
• The proposal should include team leader profile and at least four key expert CV and their roles

Eligibility Requirements and Technical Specifications

Any interested bidder shall provide, in its submission in response to this TOR, sufficient documentary evidence of adherence to the eligibility and minimum qualification criteria detailed below. Amref Health Africa will assess the documents submitted by the applicants in response to this TOR;

Preliminary Evaluation Criteria

Bids will be evaluated based on the criteria below.

Bids lacking any of the documents below will be considered as non-responsive and therefore will be eliminated at this stage.

 

No.	Particulars	Marks	Compliant	Non-compliant
1.	Provide a copy of valid TIN Certificate	1 or 0
2.	Provide a copy of valid business Trading License.	1 or 0
3.	Provide a copy of valid VAT certificate	1 or 0

 

Note: Bids missing any of the 3 mandatory requirements above will be considered as non-responsive bid and therefore will be eliminated at this stage.

 

Technical evaluation criteria (70%)

	Title of the task	Technical proposal to …………………..
	Name of consultant
	Dimensions	Description	Wt	Score	Remark
1	Methodology, work plan (25)	Understanding of the assignment	15
		Clear work plan and time table to conduct the assignment- How specifically explained	10
2	Team composition (20)	4 or more professional team relevant to the work done	20
		3 or more professional team relevant to the work done	15
		2 or more professional team relevant to the work done	10
		1 or more professional team relevant to the work done	5
3	Experience on IFRS for SACCO (20)	At least 4 and more relevant attached experience	20
		3 relevant attached experience	15
		2 relevant attached experience	10
		1 relevant experience	5
		None (0) and records of unsuccessful assignment	0
4	Work schedule (5)	Work schedule was prepared as Per the ToR	5
	Total Score = (70)		70
NB: The pass mark for technical evaluation will be 60%. Bidders who score below the pass mark will be considered non-responsive and will not move to the next evaluation stage (financial evaluation).

The Financial Proposal (30%)

This should be an outline and is indicative only at this stage. Bidders are requested to develop a more detailed budget proposal as part of the final stage of the process.

Description	Amount in ETB
Financial Quotation – Indicative budget to accomplish the task (Detailed cost proposal in ETB for the consultancy)
All Applicable Taxes
Total Amount in ETB