Terms of Reference For External Audit

1.      General Information and Background

International Media Support (IMS) is an international Non-Governmental Organization (INGO) registered and accorded legal personality by the Agency for Civil Society Organizations (ACSO) with Registry Number 4997 on 21 July 2020 as a Foreign Organization.

IMS, supported by the Swedish and Danish Embassy in Ethiopia and implementing a broad media development programme in Ethiopia (2020-20223). The focus is on strengthening local medias capacity to reduce conflict, strengthen democracy and facilitate dialogue.

2.   Objectives and Scope of Audit

The objective of the audit is to examine IMS-Ethiopia  book of accounts for the period 01 October to 31 December 2020 and  to conduct audit reviews  for consecutive three years as follow:

The auditors shall express an independent professional opinion as to whether the financial statements present fairly, in all material respects, the financial position of IMS is  in accordance with  Generally Accepted Accounting Principles (GAAP) & International best practice in the non-profit industry.

1. The audit shall be carried out in accordance with International Public Sector Accounting Standards (IPSAS) and in accordance with a law of Democratic Republic of Ethiopia agency for civil Society Organizations particularly Proclamation No 1113-2019.
2. The Audit shall establish whether or not appropriate supporting documents, records and books of accounts relating to all activities have been kept. Clear linkages should exist between the books of accounts and the financial statements presented.
3. Produce complete and accurate financial statements of project Income and expenditure during the period under review.
4. Management letter-The Auditors shall prepare a management letter after the completion of the audit in which auditors will:

5. Identify specific deficiencies or areas of weakness in systems and controls, and make recommendations for their improvement;

   • Examine on test basis that appropriateness of supporting documents, records and books of accounts relating to all project activities;
   •  Include management responses to any of  audit findings and recommendations;
   • Point out any matters that come to the auditor’s attention during the audit that might   have a significant impact to the implementation of the program
   • Examine, assess and report on compliance with the terms and conditions of the agreement between funding partners and IMS and applicable laws and regulations within accounting and taxes;
6.  The auditor shall report the identified amount in case there are any missing supporting documents;
7.  Bring to the Management’s attention any other matter that the auditors consider pertinent.

 Evaluation Methodologies

• The technical score wight 60 & the financial 40 points respectively.

 Applicable Terms and Conditions

• The payment for audit work shall be made in installments based on deliverables milestones to be agreed upon based on the consultant’s approved work plan and schedule of deliverables.
• The payment is subject to 15% VAT and other 2% withholding tax deduction as per prevailing government rules. 
• IMS has full right to cancel the bid if necessary, and some details may be subject to change.

Technical Requirements

• Explanation of the approach to performing an external audit, including the audit methodology, nature, timing and extent of audit procedures to be performed;
• Demonstration of experience and expertise of external auditing for non-governmental organizations;
• The firm’s profile, qualification and experience of the audit team.
• List of the staff members who will be deployed in the audit and their profile.
• Professional Certificate (ACCA, CPA,IFRS & etc) from internationally recognize professional body & have permit to operate in the country from
• Renewal trade license, Taxpayer Identification Number (TIN Certificate) & Value Added Tax (VAT) from relevant government body.
• Working experience and proven track record of successfully conducting auditing in other organization
• A document testifying the settlement of the necessary government taxes obligation or tax clearance.
• Required Time to complete the audit and issue final report.