Terms of Reference for the conversion of Accounting System of Ethiopian Mediation and Arbitration Center

The Ethiopian Mediation and Arbitration Center (EMAC) was established in 2004 to promote and provide Alternative Dispute Resolution (ADR) services throughout Ethiopia. The ADR mechanisms the center promotes have both humanitarian and business related benefits in one hand settling disputes amicably plays the key role for peaceful co-existence of the society. On the other hand acquiring expedites justice for business related disputes make the society attractive for investments. Thus, the center strives to make the cost effective, time saving and flexible ADR services are available to the whole member of the society as an alternative platform to access justice. Besides, EMAC empowers women through various trainings which enable them to make meaningful contribution in peace building and conflict resolution process in the country.

Currently, EMAC is implementing a project titled “Promote Access to Justice and Sustainable Peace for IDPs and Host Communities through Community-Based Mediation Services and Social Cohesion.” with financial support from European Union and Welt Hunger Hilfe. This project, based in Debre Berhan City, aims to enhance the capacity of Internally Displaced Persons (IDPs) and host communities, foster social cohesion, improve access to justice, and promote peaceful conflict resolution.

In this project EMAC is granted finance to transition its accounting system from GAAP to IPSAS. Hence the center is seeking an experienced and qualified accounting firm to assist with the conversion of its accounting system from GAAP to IPSAS. The ideal firm should have a proven track record in:

Objective:

The objective of this engagement is to transition EMAC’s accounting system from GAAP to IPSAS. The goal is to ensure compliance with international financial reporting standards, improve financial reporting processes, and promote transparency and accountability within EMAC’s operations.

Scope of Work:

The selected accounting firm will be responsible for the following tasks:

Assessment of Current Accounting System:

• Review and assess EMAC’s current accounting system, policies, and processes.
• Identify key differences between GAAP and IPSAS, and evaluate the impact of these differences on financial reporting and data conversion.

Conversion Execution:

Assist in mapping and adjusting current accounting data structures to align with IPSAS requirements.

• Oversee the technical aspects of the system conversion, ensuring the accuracy and integrity of data throughout the process.

Support and Guidance During Conversion:

• Provide technical expertise and guidance during the transition, addressing challenges as they arise.
• Ensure full compliance with IPSAS in all aspects of financial reporting, including asset valuation, revenue recognition, and reporting formats.

Training and Capacity Building:

• Provide training to EMAC’s finance team on IPSAS standards, best practices, and system functionalities.

Post Conversion Support:

• Offer post-conversion support to ensure the smooth operation of the new system and address any emerging issues.
• Provide recommendations to optimize the system for future growth and scalability.

Key Responsibilities of the Firm:

• Conduct an initial assessment of EMAC’s current accounting system.
• Guide EMAC through each phase of the transition, ensuring full compliance with IPSAS.
• Provide training and build internal capacity for EMAC’s finance team.
• Ensure the new system is optimized for future financial reporting needs.
• Offer continuous support and troubleshooting post-conversion.

Deliverables:

The selected firm will deliver the following:

• Assessment Report: A detailed report analyzing the differences between GAAP and IPSAS, the current status of EMAC’s accounting system, and a gap analysis.
• Conversion Completion: A fully functional accounting system that complies with IPSAS standards.
• Training Materials: Documentation and resources used during the training sessions for EMAC’s finance team.
• Post Conversion Support Report: A report summarizing the post-conversion support provided and issues addressed.

Qualifications and Experience:

The selected firm must demonstrate:

• Proven expertise in the differences between IPSAS and GAAP.
• The ability to provide both strategic and technical guidance throughout the conversion process.
• A track record of providing effective training and support to accounting system users.
• Prior experience working with non-profit organizations or similar entities is preferred.

Terms and Conditions:

• The selected firm will sign a contract with EMAC that outlines the scope of work, deliverables, timeline, and payment schedule.
• The firm will work closely with EMAC’s internal finance team throughout the project.
• All work must adhere to the highest standards of professional ethics and confidentiality.