Terms of Reference (ToR): Statutory Audit Services – FY2026-FY2028 _at International Media Support (IMS), Ethiopia

1. Background

International Media Support (IMS) works to promote media freedom and the safety of journalists globally. IMS has been operational in Ethiopia since its registration with the Authority for Civil Society Organizations (ACSO) on 21 July 2020 under Registration No. 4997.

In Ethiopia, IMS works with implementing partners and independent consultants to strengthen media freedom and improve the safety of journalists. As part of its financial accountability and statutory compliance requirements for FY2026, FY2027 and FY2028 the reporting period is from 1 January to 31 December, IMS seeks to engage an independent and qualified audit firm to conduct the statutory audit of its financial statements and issue the required audit reports.

2. Objectives of the Statutory Audit

The objectives of the audit are to:

1. Express an independent professional opinion on whether the financial statements present fairly, in all material respects, the financial position, financial performance, and cash flows of IMS for the financial year under review.
2. Assess whether proper accounting records have been maintained in accordance with applicable laws and accounting standards.
3. Evaluate compliance with applicable Ethiopian laws, donor requirements, and IMS internal policies.
4. Review the adequacy and effectiveness of the organization’s internal control systems and provide recommendations for improvement.
5. Identify and report material misstatements, significant control weaknesses, irregularities, instances of non-compliance, and other matters identified during the audit.

Applicable Standards

The audit shall be conducted in accordance with:

• International Standards on Auditing (ISA) issued by the International Auditing and Assurance Standards Board (IAASB).
• Applicable Ethiopian auditing standards and regulatory requirements as adopted by the Accounting and Auditing Board of Ethiopia (AABE).
• Authority for Civil Society Organizations (ACSO) requirements.
• The financial statements shall be prepared in accordance with the International Public Sector Accounting Standards (IPSAS)
• Applicable Ethiopian laws and regulations.

Scope of Work

The selected audit firm shall:

1. Plan and perform the audit to obtain reasonable assurance that the financial statements are free from material misstatement.
2. Audit total project expenditures estimated at approximately ETB equivalent of USD 500,000
3. Review accounting records, vouchers, contracts, bank records, payroll, procurement documentation, and supporting documents maintained in approximately 5 box files.
4. Assess the adequacy and effectiveness of internal controls.
5. Verify compliance with applicable laws, donor agreements, contractual obligations, and IMS policies.
6. Identify any material weaknesses, irregularities, or non-compliance and provide practical recommendations for improvement.

5. Reporting and Coordination

1. The selected audit firm will report to the IMS Ethiopia Country Representative or designated IMS Ethiopia Management and will coordinate closely with the IMS Ethiopia Finance and Administrative focal person the assignment.
2. Where necessary, the audit firm may also coordinate with the relevant IMS Ethiopia Finance focal persona regarding financial reporting requirements, accounting policies, and other information required for the completion of the audit.
3. All key communications, audit findings, draft reports, and final deliverables shall be formally shared with IMS Ethiopia and IMS Head Quarter.

6. Timeline and key Deliverables

6.1. Timeline

6.2. Deliverables

The successful audit firm shall submit:

• Independent Auditor’s Report on the financial statements.
• Management Letter detailing audit findings, internal control weaknesses, and recommendations.
• Audited Financial Statements.
• Five (3) original signed and stamped copies of the final audit report.
• Electronic copies (PDF and editable format) of all final reports.

7. Compliance and Professional Conduct

The audit firm shall:

• Comply with all applicable IMS policies relating to ethics, confidentiality, safeguarding, security, and conflict of interest.
• Maintain complete independence and objectivity throughout the assignment.
• Immediately disclose any actual or potential conflict of interest.
• Maintain strict confidentiality regarding all financial and operational information obtained during the engagement.
• Refrain from offering, soliciting, or accepting any payment, gift, or benefit that could be construed as corrupt, fraudulent, or unethical.

8. Qualifications and Experience

The audit firm must meet the following minimum requirements:

• Be licensed and registered by the Accounting and Auditing Board of Ethiopia (AABE).
• Hold a valid business license, Tax Identification Number (TIN), and professional competence certificate.
• Demonstrate at least five (5) years of experience conducting statutory audits for NGOs, international organizations, or donor-funded projects.
• Have qualified audit personnel with relevant professional certifications and experience.
• Demonstrate independence and the absence of any conflict of interest.