Terms of Reference Audit Service

Who We Are

Girl Effect is an international non-profit organization dedicated to addressing challenges faced by adolescent girls and youth in Ethiopia. Operating in the country since 2013, the organization leverages Social and Behavior Change (SBC) strategies, combining media and on-the-ground interventions to tackle various societal issues and empower young people. Girl Effect Ethiopia created the youth brand Yegna in 2014 and since then has reached over 10 million people through multiple products, outreach programs, girl networks, and research pieces done all for the betterment of adolescent lives.

We create safe spaces for girls, sharing facts and answering questions about health, nutrition, education, relationships, etc. And we use innovative technology so we can reach girls at scale. We arm girls with the skills to negotiate and redefine what they are told is possible, so every girl can choose to be in control of her body, her health, her learning and livelihood.

When a girl unlocks her power to make different choices that change her life, it inspires others to do so too. She starts a ripple effect that impacts her family, community, and country. 

That’s the Girl Effect.

What we are looking for

We are currently looking for an Audit firm that will provide an external audit service of our financial documentation for the fiscal year 2025, as we are required to submit the IPASA-based financial audit report to the responsible governmental office, i.e. Civil Society Organization, in fulfilment of the procedure. 

Context of Assignment

The scope of the audit will cover all funds related to Girl Effect activities for the financial year from January 2025 to December 2025 (12 months).

The audit will involve obtaining sufficient and appropriate evidence regarding the amounts and disclosures in the financial statements to provide reasonable assurance that the statements are free from material misstatement, whether due to fraud or error.

The audit of Girl Effect’s financial statements—which include the statement of financial position as at 31 December 2025, the statement of profit or loss, the statement of changes in net assets/equity, the statement of cash flows for the year then ended, and the accompanying notes (including a summary of significant accounting policies and other explanatory information)—is conducted for the purpose of expressing an opinion on whether these financial statements present a true and fair view, in all material respects, of the Organization’s financial position, financial performance, and cash flows in accordance with International Public Sector Accounting Standards (IPSAS), as adopted by management, as well as applicable local laws and regulations.

Special attention should be given by the auditor to whether:

1. Girl Effect funds have been used with due attention to efficiency and economy, and only for the purposes for which funding was provided
2. An appropriate management structure, internal controls and record-keeping systems are maintained and can be relied upon. 
3. Procurements have been carried out in accordance with the relevant procedures, taking into account value for money.
4. All necessary supporting documents, records and accounts have been kept in respect of Girl Effect funds for the funding period. Clear linkages should exist between the books of accounts and relevant supporting documentation.
5. The accounting and overall management control system is adequate and effective in monitoring disbursements.
6. Issued in soft copy for circulation to Partners, and 4 hard copies will be produced and delivered to Girl Effect. Components of the reports are: 
• Statement of Financial Position,
• Statement of Income and Expenditure,
• Statement of Change in Equity, 
• Statement of Cash Flow,
• Notes to the Financial Statements.
7. Express an opinion on whether the Girl Effect Financial Statements are a true and fair representation of its activities, assets and liabilities.
8. On a sample basis, determine whether the Programme is getting value for money on its purchases of goods and services by comparing costs incurred with the prevailing market prices, physical verification of some of the procured goods to ensure that they exist, and authentication of documents used for drawing funds from the Programme; and 
9. Produce a detailed management letter specifying observations and recommendations based on the audit findings. 

The audit should include a rigorous examination of the system of internal controls, including organization structure, authority levels, staff competence, accounting records and supporting documentation, segregation of duties, and monitoring arrangements. Where certain controls are impracticable, appropriate compensating controls should exist. The auditor should plan the audit so that there is a reasonable expectation of detecting material misstatements in the accounts resulting from fraud, error or non-compliance with laws and regulations as may be necessary. If the auditor’s suspicions are aroused, she/he must inquire into all the circumstances until satisfied.

Expected commitment 

The Auditor is expected to perform the Final Audit of the organization covering the months of the year (January 2025 to December 2025), which should commence by the beginning of February 2026. Also, please note that we have 25 box files for the Audit firm to work on.

Timeframe

1. Terms of reference published: Tuesday, 16th December 2025
2. Deadline for responses: Wednesday, 24th December 2025
3. Supplier selection, contracting and briefing: January 6, 2026
4. Project commencement: 1st February 2026

Scope of Work 

The audit scope will include all transactions relating to Girl Effect activities for the 12 months from January 2025 to December 2025. The organisation processed approximately a total of 5,679 transactions, including but not limited to:

1. Accounts Payable  (1,700) 
2. Tax  (570)
3. Expenditure transactions (1,500)
4. Payroll transactions  (720)
5. Bank transactions (1,100)
6. Other transactions (80)

The audit will involve obtaining evidence on the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or errors.  The audit will be carried out in accordance with international standards on auditing and applicable local laws and will include such tests and auditing procedures as the auditor considers necessary under the circumstances.

Key deliverables

The Audit firm is expected to perform the Final Audit of the organization covering the months of year (January 2025 to December 2025, which should commence by the first week of February 2025 and should not last more than three weeks, with the below mentioned key deliverables.

• Audit Report Covering January 2025 to December 2025

The opinion expressed in the IPASA-based financial audit report  will address whether:

• • The financial statements present a true and fair view of the financial position of Girl Effect. In expressing this opinion, the auditor must case, and whether the financial statements agree with these records. 
  • Girl Effect funds have been used in accordance with the relevant local and global policies and procedures of civil society.
  • The auditor shall make a statement confirming they have complied with these terms of reference in the introduction to the management letter. In particular, they will confirm that they have complied with each of the points raised under the scope of work above.

Besides a primary opinion on the Financial Statements, the audit report should also include a separate paragraph commenting on the accuracy and propriety of expenditures.

• Management Letter 

In addition to the IPASA-based financial audit report, the auditor will prepare a “Management Letter” which will:

• • Give comments and observations on the accounting records, systems, and controls that were examined during the audit.
  • Identify specific deficiencies or areas of weakness in systems and controls and make recommendations for their improvement.
  • Communicate matters that have come to the auditor’s attention that might have a significant impact on the operations of Girl Effect. 
  • Refer to any other matters that the auditor considers relevant.
  • In all cases, a management letter MUST be issued. If no issues have arisen during the audit, the auditors must issue a management letter stating that no issues have arisen.
  • Include a high, medium or low prioritization on all issues arising in the management letters. Ranks should be allocated according to the following criteria:

• • • “A” - a major weakness or a recurring issue that must be addressed soon
    • “B” - an important matter that will significantly improve the control environment, the accounting system or the operations of the business, but is not so serious or prevalent as to be considered a major weakness
    • “C” - a minor (or isolated) weakness that should nevertheless be addressed to improve the control environment, the accounting system or the operations of the business

Who You Are

Eligible bidders are only those Audit Firms categorized as experienced and recognized audit firms in Ethiopia, and who fulfil the following minimum criteria.

• Renewed professional license from the Accounting and Audit Board of Ethiopia (AABE)
• Certificate of Professional Competence issued by the Accounting and Audit Board of Ethiopia (AABE)
• Tax Identification Number (TIN) and Value Added Tax (VAT) certificate
•  Renewed trade license and tax clearance for the current physical year
• Experience in audit of IPSAS compliant financial statements and engaged in conversion of IPSAS  compliant financial statements at least for five INGOS of similar size with TCCE
• Must have a minimum of five years of audit experience with an INGO

Management

The supplier will report to GEE’s Senior Finance Manager.

Proposal submission

Qualified audit firms are invited to submit a brief proposal (max 10 pages) that includes the following: 

1. Qualification and experience of the firm. 
2. Current practising certificates 
3. Certificate of good standing with AABE
4. The approach and methodology to undertake this assignment underpinned by a demonstration of value for money.
5. Previous experience and engagement in line with the ‘Who You Are’ section above.
6. A fee quote (cost in ETB) and work plan. 
7. The financial and technical proposals should be sent separately.

In their proposal, the bidder must demonstrate an understanding of the requirements described in the TOR and demonstrate how the bidder will meet the requirements of the evaluation criteria.

GE is not liable for any cost incurred during the award/contract preparation, submission, or negotiation of the award/contract. All submitted documentation and/or materials shall become and remain the property of GE.

VALIDITY of the proposal shall be for 90 days from the date of bid closure.

Evaluation Criteria

Technical Evaluation (60%)

• Demonstrate a detailed understanding of the services and the deliverables required  (10%)
• Experience in audit of IPSAS compliant financial statements and has a minimum of five years of audit experience with an INGO  (25%)
• Provide a list of experienced personnel to perform the required duties and adequate resources to handle assigned responsibilities  (25%)

Financial Evaluation 

• Value for money of the proposed fee (40%)

How To Apply

To apply for this opportunity, please submit a proposal by email with the subject line “Audit Services- Ethiopia” to suppliers@girleffect.org  by December 24, 2025.

Copyright

All materials/documents arising from this consultancy work shall remain the property of Girl Effect.

Equal Opportunities

Girl Effect is committed to equal opportunity regardless of race, color, ancestry, religion, sex, national origin, age, marital status, disability, gender or expression. We are proud to be an equal opportunity workplace.

We are committed to building an organization that is truly representative of the communities that we serve. To this end, due regard will be paid to procuring consultancy services of organizations and individuals with a deep understanding and experience of our programming markets and diverse professional, academic and cultural backgrounds.

Safeguarding

You may be required to undertake safeguarding checks. Shortlisted consultants will be assessed on our organizational values at the interview stage. The successful consultant will be expected to adhere to our safeguarding policy. We encourage you to read and understand our safeguarding policy, the executive summary of which can be found here. We have zero tolerance for all forms of violence against children, beneficiaries and staff. 

Tax

Girl Effect Ethiopia is obliged by the Ethiopian tax authorities to ensure all taxes are charged where applicable. Applicants are advised to ensure that they have a clear understanding of their tax position regarding provisions of Ethiopian tax legislation when developing their proposals.

Disclaimer

GE reserves the right to determine the structure of the process, the number of shortlisted participants, the right to withdraw from the proposal process, the right to change this timetable at any time without notice and reserves the right to withdraw this tender at any time, without prior notice and without liability to compensate and/or reimburse any party. GE shall inform the ONLY successful applicant(s). The process of negotiation and signing of the contract with the successful applicant(s) will follow.

Please note: We will evaluate only proposals submitted following the application process outlined in the TOR and using our specified email address (suppliers@girleffect.org).