SOS Children’s Villages Zambia: Consultancy – Preparation of Finance and Accounting Policy Manual

TERMS OF REFERENCE (TORs)

TERMS OF REFERENCE FOR PREPARATION OF FINANCE AND ACCOUNTING POLICY MANUAL FOR SOS CHILDREN’S VILLAGE ZAMBIA

I. ABOUT SOS CHILDREN’S VILLAGE ZAMBIA

SOS Children’s Villages Zambia is a registered non-profit organization in the Republic of Zambia and is an affiliate to SOS Children’s Villages International which has a presence in 134 countries and territories. SOS Children’s Village Zambia has been operational in Zambia since 1999 and has 4 villages operating in Lusaka, Kitwe, Livingstone and Chipata. The programmes run by SOS Zambia include the following:

• Alternative Care programming;
• Community-based Family Strengthening Programme;
• Youth Vocation Training Centre

SOS Children’s Village Zambia has budgeted for consultancy services in the 2020 budget and it intends to apply part of these funds towards the consultancy services to review and update the SOS Financial and Accounting manual.

SOS now invites eligible individuals and Zambia Institute of Chartered Accountants registered Non Auditing Firms to submit their proposals for undertaking a review of the current Financial and Accounting procedures manual and update the same in line with the current existing practices and standards.

The evaluation criteria will be based on Quality and Cost Based Selection procedures described in this Request for Proposals (RFP).

II. OBJECTIVES OF THE ASSIGNMENT

The objective of this assignment is to review the existing procedures with the view to strengthen the finance and accounting systems in the organization so as to ensure that: – Consistent and uniform accounting policies are followed by the various departments within the organization.

III. SCOPE OF WORK FOR CONSULTANTS

The SOS Children’s Village Zambia is seeking professional services from reputable consultants (individuals and Zambia Institute of Chartered Accountants registered Non Auditing Firms) to submit proposals for the review, design and development of the Finance and Accounting Policy Manual. The objectives, detailed scope, timelines and other terms for the assignment are outlined in the sections below. Further, the assignment require development of comprehensive finance policies and procedures in terms of policy general, procedure general, document control procedures, responsibilities, and change control.

Review and/or development of a Delegation of Authority are required. There is a clear delegation of responsibility matrix available – Processes are in line with International Financial Reporting Standards (IFRS) – Processes are in line with the statutory requirements. – Efficient, accurate processing and accounting of transactions with adequate controls are in place. – A process based approach is followed to identify, account and monitor revenue and costs. – A proper fixed assets register is kept at all times and that these assets are tracked and secured. – A proper process is in place related to the acquisition and disposal of assets in accordance with statutory guidelines. – A robust financial management information system is in place. – A payroll processing system is in place. – There is Key Relationship Management.

IV. SCOPE OF SERVICES

The scope of services would inter-alia include: Review of existing finance and accounting procedures to include the accounting and financial management software currently in use. Developing policy manuals for the following functions: – Finance and Accounting – Payroll Operations – Liquidity Management – Cash – Fixed Assets acquisition, update, maintenance, security and disposal – Budgeting for all departments – Staff training to ensure that the procedures as set out in the Manual are understood and can be carried out in line with the SOS Children’s Village Zambia expectations.  Detailed sub activities to be covered in the above processes inter-alia includes:

1. Finance and Accounting – shall include but not limited to the following areas: – Cash and Bank Accounting – Contracts Accounting – Expense Accounting – Purchasing and Storeroom Accounting – Management Accounts and monthly reports.

2. Payroll Operations – shall include but not limited to the following areas: – Accounting for Employees’ Remuneration and Benefits including leave pay, end of service benefits and Gratuity – Payroll processing (including additions and terminations)

3. Liquidity Management – shall include but not limited to the following areas: – Treasury Management (Fund Planning, Working Capital Management, Treasury Related Accounting).

4. Fixed Assets Policy – Fixed Asset and Depreciation Accounting – Physical verification of Assets and Storing

5. Budgets and Budgetary Control Policy – budgetary system prescribing the following: – Roles and responsibilities for preparation of budget estimates and budget revision. – Budget heads and linking with the account codes. – Budget compilation, finalization, approvals and monitoring process – Budget formats – Appropriation and re-appropriation policy of budget estimates – Budget monitoring reports to be generated (to be part of Financial MIS) – Interface with the financial management and accounting system.

6.  Financial Management Information System – Financial MIS, prescribing the following: – Objectives – Types of Reports – Formats – Frequency – Distribution – Responsibility for preparation – Source of data

7. Revised Chart of Accounts so that it fully covers all aspects of SOS Children’s Village operations as well as linking it to the International Chart of Accounts.

8. Include the requirements of the Enterprise Risk Management (ERM) Programme that is to be implemented. The Finance and Accounting Policy Manual shall also cover the following aspects: – Accounting policies – Key accounting controls – List of documents /records to be maintained – Formats of the accounting documents/records. – Procedure for compliance with all statutory provisions. – Guidelines for the preparation of annual audits. – Closing Guidelines for finalization of Annual Accounts – Implementation of International Financial Reporting Standards (IFRS) accounting only as it relates to the operations of SOS Children’s Village Zambia

V. TRAINING AND IMPLEMENTATION SUPPORT

The consultants would be required to recommend a training programme for SOS Children’s Village Zambia Finance and Accounting staff such that they would be proficient in all aspects of the Manual. The consultants would describe in detail the manner in which training should be provided.

VI. OTHER ASPECTS

SOS Children’s Village shall make available to the consultant office working space and all internal office policies, circulars, manuals etc. necessary for review and for timely completion of the Manual. The Manual shall cover the activities performed by the Finance and Accounting Department including interfaces with other departments.

VII. TIME FRAME

SOS Children’s Village Zambia requires that this assignment be completed with signed copies of the Manual submitted to the organisation no later than two (2) months from the date of execution of the contract.

VIII. ELIGIBILITY CRITERIA FOR CONSULTANTS

The consultant should be a professionally qualified individual or a professional firm and have been providing related consultancy services for a minimum period of five (5) years. The following eligibility criteria are mandatory, non-fulfilment of which will lead to disqualification of the bid: The consultant should have experience in providing advisory services across a range of services in the area of financial management information systems, including design, development and implementation of manuals as well as knowledge of Navision Accounting software. The consultant should submit a complete profile of the firm to include CVs of the lead partners or in the case of individuals, details of qualifications as well as reference of related assignments that they have completed.

The closing date for submission of proposals is April 15, 2020 at 17.00 hours. The bids should be dropped in a box at the SOS Children’s village National office Reception. No electronic copies will be accepted.

IX. CONFIDENTIALITY

All deliberations relating to preparations of the Manual including all information collected from various meetings/documents, primary & secondary data etc. shall be kept confidential and shall not be divulged to any third party either verbally or in writing or in any other form.

X. PRICE BASIS

Lump sum price inclusive of taxes and other disbursements etc. is to be quoted for the preparation of the Finance and Accounting Policy Manual.

XI. PAYMENT TERMS

An advance payment of 25% of the contracted sum within fifteen days of execution of the agreement at which time synopsis and a schedule for preparation of the Manual is to be submitted. The first installment of 25% of the fee within fifteen days of submission of 1st Draft of Finance and Accounting, Payroll Operations,  Liquidity Management, Cash Management,  Fixed Assets Policy sections of the Manual,  Budgets and Budgetary Control Policy, Financial Management Information System section and Revised Chart of Accounts. Second instalment of 25% of the fee within fifteen days of submitting the second draft of the manual that includes SOS comments of the First Draft. Final installment of 25% of the fee after Two weeks from the date of acceptance of Manual by SOS Children’s Villages Zambia.