International Fertilizer Development Center (IFDC)

Reporter
(Jan 22, 2025)

Terms of Reference (TOR) for Annual Financial Audit of IFDC- International Fertilizer Development Center Ethiopia  Country Office

1. Introduction

This Terms of Reference (TOR) outlines the requirements for an annual financial audit for the IFDC Ethiopia Office. The audit aims to ensure the integrity and transparency of the organization’s financial practices and compliance with applicable laws and regulations.

2. Background

The International Fertilizer Development Center (IFDC) is a nonprofit, Public International organization based in the U.S. that focuses on innovative research, market systems development, and strategic partnerships to spread sustainable agricultural solutions. Our work aims to improve soil health, food security, and livelihoods around the world. IFDC plays a critical role in tackling these global problems through the development and transfer of affordable, effective fertilizer technologies. IFDC’s solutions span a wide spectrum of research and development work, including production process research, applied research on soil systems, development of innovative fertilizer products and application technologies, market systems development to strengthen input and output value chains, and policy analysis to enable fertilizer importation, business development, and smallholder adoption of fertilizer and other soil fertility technologies.

3. Objectives of the Audit

  • To provide an independent opinion on the fairness and accuracy of the financial statements of IFDC Ethiopia
  • To assess compliance with applicable accounting standards and regulatory requirements.
  • To evaluate the effectiveness of internal controls and risk management practices.
  • To identify areas for improvement in financial processes and systems.

4. Scope of Work

The audit shall cover the following:

  • Review of the financial statements for the fiscal year ending 31 December 2024.
  • Examination of accounting records, internal controls, and supporting documents.
  • Evaluation of compliance with donor agreements and relevant legal requirements.
  • Assessment of the adequacy of financial policies and procedures.
  • Preparation of a final audit report with recommendations.

 5. Methodology

The audit shall be conducted in accordance with the International Standards of Auditing (ISA) as well as local audit regulations in Ethiopia. It should include tests and procedures as the auditors consider necessary to express an independent professional opinion such as: Risk assessments to identify key areas for focus.

6. Deliverables

The auditor is expected to deliver:

  • An independent auditor’s report.
  • A management letter detailing findings, recommendations, areas for improvement,t and classification severity (e.g., high, medium, low).
  • A presentation of findings to the Country Director and Finance team.

7. Timeline

  • Proposal Submission Deadline: 31 January 2025
  • Tentative Audit Start Date: 03 February 2025
  • Draft Report Submission: 20 February 2025
  • Final Report Submission: 03 March 2025
  •  Presentation to Country Director and Finance Team: 03 March 2025

8. Supervision and Reporting

The Audit Team will be expected to work independently but with close support provided on the ground by the National Finance Officer (NFO) and supervision by the Internal Auditor.

IFDC Ethiopia and Headquarters will provide the relevant information to support the assignment. The Audit firm will be reporting to the Global Finance Manager.

9. Proposal Submission Requirements

Interested firms should submit a proposal that includes all the documents in sealed envelope:

  • Overview of the firm, including relevant experience in auditing INGOS.
  • Profiles of key personnel who will conduct the audit.
  • A detailed methodology for conducting the audit. Proposed timeline and fee structure.
  • References from similar organizations.

10. Evaluation Criteria

The following criteria will be used to evaluate and rank the proposal submitted. Offers that score the height mark on technical approaches & fit within the IFDC budget will be awarded a service contract

Selection Criteria

Points

Technical approaches and methodology

70%

Financial Proposal

30%

Total Point

100%

11. Financial proposal

Please submit your quotation for this assignment clearly indicating the cost in (Local Currency) and USD of the same including applicable taxes in a Sealed Stamped Envelope.

12. Terms of payments

IFDC-Ethiopia shall pay the Audit firm upon mutual agreement as follows:

  • 50% on Commencement of assignment.
  • 50% upon approval of the final reports.

13.13.Conclusion

We look forward to receiving proposals from qualified auditors to support our commitment to transparency and accountability in our financial operations.

14. Office Adress and Contact Information
Location Address: IFDC Ethiopia Axum Building] Near Urael | Ghana Road | P.O. Box 2363 | Addis Ababa, Ethiopia +251 11-522-6522 / www.ifdc.org. For questions or further information, please contact the IFDC Ethiopia Office, finance team.