Subsidiary Auditor at Village Enterprise Ethiopia

1. Introduction

Village Enterprise Fund, hereinafter referred to as “Village Enterprise”, is an international nonprofit organization committed to ending extreme poverty through entrepreneurship and innovation. We operate programs across multiple countries in Sub-Saharan Africa and maintain a U.S. headquarters in California, which oversee global finance, compliance and governance.

We are inviting proposals from qualified audit firms in Ethiopia to serve as Referred-to Auditors for our Ethiopian subsidiary for the fiscal year ending June 30, 2025. The engagement will support the overall Group Audit, which is led by a U.S.-based Group Auditor.

2. Village Enterprise Ethiopia Program

Village Enterprise was registered in Ethiopia in 2022 as a Foreign Organization under the Civil Society Organizations Proclamation No. 1113/2019. The Country Office is in Addis Ababa, with program operations based in Melkadida, covering the Kobe, Melkadida, and Hilaweyn refugee camps in the Somali Region.
For the Financial Year 2025 (1st July 2024 – 30th June 2025), the organization expended approximately Birr 195 million. All financial and operational records for this period are maintained at the Melkadida office in the Somali Region.
Additionally, in the previous financial year (FY 2024), Village Enterprise received an unqualified (clean) audit opinion, demonstrating strong financial controls and compliance with both statutory and donor requirements.

3. Scope of Work

The Subsidiary Auditor will be responsible for:
a. Referred-to/Subsidiary Audit

• Conduct an independent audit of the Village Enterprise Ethiopia Program in accordance with International Standards on Auditing (ISAs), IPSAs, Proclamation No. 1113/2019, and other applicable Ethiopian laws and regulations, as well as any directives from the Group Auditor.
• Assess compliance with statutory and regulatory obligations, including requirements of the Agency for Civil Society Organizations (ACSO), the Ethiopian Revenue and Customs Authority (ERCA), and applicable laws such as the Income Tax Proclamation, VAT Proclamation, Employment and Pension Proclamations, and any other applicable requirements.
• Evaluate adherence to donor requirements and the organization’s internal policies and
  procedures.
• Issue an audit opinion on the financial statements prepared under the relevant financial reporting framework and in accordance with applicable Ethiopian laws.
• Identify and report, in the Management Letter, any internal control deficiencies, non- compliance issues, or other significant findings, along with practical and actionable recommendations for improvement.

b. Support to Group Auditor

• Collaborating with the Group Auditor by responding to their instructions, providing access to audit documentation and completing any required questionnaires or memos.
• Ensuring audit work is sufficient and appropriate to support the Group Auditor’s opinion on the consolidated financial statements.
• Assisting in identifying significant risks, transactions or compliance matters relevant to group- level reporting.

4.Deliverables

• Audit Report for Village Enterprise Ethiopia for the year ending 30th June 2025, prepared in accordance with ISAs, based on financial statements prepared under IPSAS and in compliance with Proclamation No. 1113/2019, to be submitted to ACSO by 30th September 2025.
• Management Letter summarizing key internal control and compliance issues with recommendations.
• Group Audit Documentation, including questionnaires, memos, and supporting schedules as required by the Group Auditor. Exit Meeting with management and the Group Auditor to present findings and confirm follow- up actions.

5. Key Dates

Proposal Requirements

Interested firms should submit a written proposal that includes the following components:

• Firm Profile: Provide a brief overview of the firm, including legal registration, valid audit license from the Accounting and Auditing Board of Ethiopia (AABE), Trade license (Renewed for the current year) TIN and VAT registration Certificate, Office location in Ethiopia and highlights of your experience auditing NGOs of similar size and complexity as Village Enterprise.
• Audit Methodology: Outline of the proposed audit approach, including risk assessment, compliance with International Standards on Auditing (ISAs), and how the methodology aligns with instructions from the Group Auditor.
• International Network Membership (Mandatory): Specify affiliation with a recognized international audit network as part of your proposal submission. Please note that this is a mandatory requirement
• Group Audit Experience: Evidence of prior work as a Referred-to Auditor within a group audit, including coordination with international audit teams.
• Engagement Team: List key audit team members, outlining their roles, professional qualifications and experience within the non-profit sector and statutory audits.
• References: At least two references from recent audits of NGOs in Ethiopia with similar size and operational scope, including contact information.
• Fee Proposal: Clear itemization separating audit fees from other costs (e.g., taxes, travel, disbursements).
• Assumptions and Support Needed: Any assumptions made, and specific support expected from Village Enterprise and the Group Auditor.

Evaluation Criteria

Proposals will be evaluated based on the following criteria:

• Audit Licensing: Possession of a valid AABE license, business registration, VAT and TIN licenses.
• NGO Audit Experience: Demonstrated experience auditing donor-funded NGOs in Ethiopia, especially those regulated under Proclamation No. 1113/2019.
• Audit Methodology: Sound and efficient audit approach that aligns with ISAs and supports group audit processes.
• Group Audit Capability: Membership of an internationally recognized network and proven ability to function as a Referred-to (Subsidiary) auditor, including experience in submitting group audit documentation and engaging with international auditors.
• Team Qualifications: Technical competence, professional certification, and relevant audit experience of key team members.
• Regulatory Knowledge: Understanding of ACSO reporting and audit submission requirements, Ethiopian tax laws (Income Tax Proclamation, VAT, PAYE, etc.).
• Client References: Strength and relevance of feedback from recent NGO audit clients.
• Fee Structure: Reasonableness, clarity, and value-for-money of proposed fees.
• Responsiveness to Requirements: Clarity of assumptions, understanding of support needs, and completeness of the proposal in addressing all requirements.