Mercy corps invites competent audit firms to participate in the bid process whereby it will select a firm for the audit of its books of accounts.



  • Category : Auditing Related
  • Posted Date : 10/21/2022
  • Phone Number : 0111110777
  • Source : Reporter
  • Closing Date : 10/28/2022


Terms of Reference for Statutory Audit Financial Year 2022-2024

Established itself in Ethiopia in the year 2004, as a Foreign Charity Organization, Mercy Corps Ethiopia has since developed a diverse set of programmes with umbrella goal of ensuring that households and communities in Ethiopia are engaged in rewarding and sustainable livelihood activities within a secure    environment.  Currently, it is implementing programs such as, Resilience in Pastoral Areas (RiPA), Livelihood Improvement for Women and Youth in Addis Ababa(LI-WAY), Stimulating economic opportunities and job creation for refugees and host communities in Ethiopia in support of the comprehensive refugee response framework, Humanitarian Assistance and Recover Program (HARP) for IDPs and Drought Affected Communities in Somali, Oromia and Southern Nations and Nationalities People’s (SNNP) Regions, Delivering Resilient Enterprises and Market Systems for refugees in Ethiopia(DREAMS), Drought Response and Recovery Program (DRRP) in Somali Region, Humanitarian Response to the Crisis in Afar (HURECA), Innovative Approaches to Building Resilience for Refugees and Host Populations in Gambella Region, etc.

Mercy corps is implementing these programs through a country office in Addis Ababa and field offices in, Gambella, Negelle Borena, Diredawa, Jijiga,  Gode,Dollo,Semera and Konso Offices. It operates in Southern Nations and Nationalities Regional State, Oromiya Regional State, Somali Regional state, Gambella Regional state, and Afar Regional state .

Mercy Corps Ethiopia is funded mainly by USAID, WFP, BHA,SIDA ,EC,  and private donors. The annual budget of the organization is increasing from year to year, and the spending for the fiscal year 2022(January1, 2022 to December 31, 2022) is reaching >USD13M.

The total number of box files for this period reaches 325

Mercy Corps Ethiopia now wants to perform statutory audit of its books of accounts for the fiscal year ending Dec. 31, 2022, and subsequent two financial years according to international auditing standards, IPSAS and USAID Grant Policy and Regulation of A-133 audit requirement.

Therefore, it invites competent audit firms to participate in the bid process whereby it will select a firm for the audit of its books of accounts.

To participate in this bid the audit firms:

  • Should be classified as “Grade A” according to office of the Auditor General classification.
  • must have well established experience in auditing national and international NGOs
  • It is also highly preferable that the audit firms have evidenced working relationships and quality assurance mechanisms with known and well-accredited international audit firm.

As we are retaining all records and backing documents in Addis Ababa in the country office, the audit will be conducted in Addis Ababa at Mercy corps office; but there could be a chance to travel to the field offices.


Audit report of the accounts of Mercy Corps for the financial year 2022 (1st January 2022 – 31st Dec 2022) and   associated management letter.  Same deliverables are expected for each subsequent two financial years’ audit.

The audit report should be in three copies and also the firm is expected to complete the audit work within 30 days starting from the date the contract is signed.

Bidders can submit their bid documents considering the following conditions:

  1. Requirements to be fulfilled by the prospective bidder:
  • Certificate of Professional Competence issued by a recognized body having a legal mandate to give such certification
  • Current and renewed trade license as per the Ethiopian Trade regulation
  • Taxpayer registration and VAT Certificate
  • Bidders are required to submit a Technical Proposal and a Financial Proposal in two separate and clearly marked sealed envelopes.
  •  The Bid documents must be received by Mercy Corps Ethiopia, Country office ON OR BEFORE November 23rd, 2022, during working hours from 08:00AM-5:00PM (Monday-Friday) at our Addis Ababa office.
  • Any proposals received after the deadline will be rejected and returned to the bidder unopened.
  1. The bidder achieving the highest combined score in the Technical and financial evaluation will be the winner and be invited to sign contract agreement.
  2. Conditions that result in automatic rejection of bids
  • Bidders that do not fulfill the requirements mentioned in No.1 above shall be automatically rejected at the time of the bid opening.
  1. Mercy Corps reserves the right to reject any or all bids and specifically reserves the right to make the award in the best interests of Mercy Corps.

Evaluation methodology

  1. The weights given to the Technical and Financial Proposals are
  • Technical 70.0 points
  • Financial 30.0 points

2.The number of points assigned to Technical evaluation is distributed as follows

Parameters for Evaluations Points
1.Qualification and experience of the assigned auditors in relation to the assignment 15(21.4%)
2.Experience of the firm in auditing 15(21.4%)
3.Work plan and methodology 15(21.4%)
4.Good past performance(as evidenced by audit clients) 10(14.3%)
5.Insitutional Capacity of the audit firm 10(14.3%)
6.Reasonable time to complete the assignment 5(7.1%)
Total Points 70(100%)

The minimum requirement to pass the Technical Evaluation is 42.0 point (i.e. 60% of the weight assigned to the Technical Evaluation)

  1. The Financial proposal of bidders that qualify in the Technical Evaluation will be opened and evaluated. The lowest financial offer will be awarded a maximum of 30.0 points. The other financial offers will be awarded points based on their ratio to the lowest offer.
  2. Technical proposal

The Technical proposal shall provide the following information.

  • A description of the Bidder’s Organization detailing experience of the bidder in auditing and the grade (level) of the firm
  • A detailed work plan, a description of the methodology by which the firm intends to execute the work and the estimated time to complete the audit.
  • The composition of the proposed staff team, and the tasks that would be assigned to each team members. This should be segregated by teams engaged in the planning, supervision and directing the audit work and report writing, team members who will be doing the audit work at Mercy Corps office, etc.
  • CVs of team members to be assigned for this audit work
  1. If the successful bidder fails to sign the contract agreement within 5 days of the announcement of winning, the bid shall be cancelled. Mercy Corps may award to the next level high standing bidder or re-advertise.
  2. Bidders must avoid conflict of interest. The organization shall reject any bid or terminate the contractual agreement if it assumes that conflict of interest may arise.
  3. All questions regarding the Tender shall be forwarded to Mercy Corps Ethiopia’s Finance Department at:

Mercy Corps Ethiopia

P.O.Box 14319

Addis Ababa, Ethiopia

Tel:  +251-011-111-0777

Fax:  +251-011-111-0701