**Terms of Reference **

Basic Financial and Administration Training to Non-Financial Managers 2022

Context:

Samyukta Safai Jagaran (SASAJA) is a non-governmental, non-profit making, non-political organization established by the groups of informal waste workers in 2014. SASAJA focuses on the recognition, rights, and advocacy for IWWs. SASAJA want to advocate to the government especially on recognizing their contribution to waste management, government trust funds for IWWs and access to social health insurance. SASAJA is providing monthly education to their group members focusing on savings and credit and solid waste management.

SASAJA in collaboration with Green Path Nepal (GPN) and Kathmandu Metropolitan City (KMC) is implementing “Healthy Waste Workers for Sustainable Waste Management” project funded by Médecins du Monde (MdM). This project has three main expected outcomes: 1) Formalization of IWWs through non-profit enterprises and increasing their recognition in integrated solid waste management in urban cities, 2) Increase risk mitigation and promotion of decent safe work opportunities in current activities and through innovation, 3) Increase access to quality health services for IWWs and the community through promotion of Urban Health Promotion Centre.

Key objectives of the consultancy

The overall objective of this training is to enhance partner organization’s/ beneficiaries’ capacity on financial management. An estimated 20 to 25 participants from partner organizations and beneficiaries will attend this training. We consider 2 modules as per training objective:

Module 1: Deliver the knowledge, skills, and tools of financial management to project beneficiary empowering them to develop and manage profit making entrepreneurship/ businesses.

Module 2: Deliver the knowledge, skills, and tools of financial and administrative management to project staffs and managers, entrepreneurs of the non-profit making organizations.

The details of each module are as following:

Module 1: Deliver the knowledge, skills, and tools of financial management to project beneficiary empowering them to develop and manage profit making entrepreneurship/ businesses. (2 to 3 days)

The specific objectives of the training/consultancy are as follows:

1. To provide basic financial and administrative skill to project beneficiaries to develop or/and operate their businesses/ enterprises including small business registration or replication of business in another location.

2. To be able to keep the basic financial record of the business and generate necessary financial information.

3. To understand the basic compliance of the organizational operation including the prospective of tax compliance, labor laws, renewals, fines, local government administration, audit etc.

Basics of entity operation

• Registration – options and different prospective (proprietorship, partnership, company, firm etc.)
• Legal environment of operation and compliance - tax compliance, labor laws, renewals, fines, local government administration, audit etc

Accounting

• System of record keeping
• Basic accounting principles
• Transaction and Reporting
• Accounting cycle, cut off and fiscal closing
• Communication and report generation
• Managing audit

Finance

• Budgeting & Budget Control
• Managing liquidity, or ready access to cash.
• Managing your business risks
• Investing your money & Financing large purchases
• Planning and analysis
• Break even and Return analysis

Tax planning

Financial Analysis

• Cashflow analysis
• Reading and understanding financial statements or financial reports
• Gross profit analysis
• Debt / Equity analysis
• Loans/Debts: Securing easy loans
• Working capital analysis

HR and Administrative Management

• Understanding HR prospective and Leadership
• Understanding general HR administration
• Motivation and Performance Management
• Recruitment, placement, promotion, retention

Basic Logistics, procurement, and inventory

• Understanding basic procurement procedure
• Logistics support service
• Inventory – recording, controlling, safeguarding of assets

Module 2: Deliver the knowledge, skills, and tools of financial and administrative management to project staffs and managers, entrepreneurs of the non-profit making organizations. (2 to 3 days)

FINANCIAL MANAGEMENT FOR NGOS

Why is Financial Management important for NGOs?

What is Financial Management?

What is Financial Control?

Who is Responsible for Financial Management?

The Seven Principles of Financial Management

The Four Building Blocks of Financial Management

The Tools of Financial Management

GETTING ORGANISED

Systems Design

Financial Accounting vs. Management Accounting

The Chart of Accounts

Cost Centres and Cost Structures

Financial Policies and Procedures, What is a Finance Manual? Standard Forms

Work Planning

FINANCIAL PLANNING

The Financial Planning Process

What is a Budget? Who needs Budgets? Types of Budget

Budget Structures, Techniques, Terminology, Budgeting Process

Good Practice in Budgeting, Using a Budget Worksheet

What makes a good budget?

Consolidation Process, The Challenge of Core Costs

The Challenge of Multiple Donor Programmes

UNDERSTANDING ACCOUNTS

Accounting Methods, Cut Off/ Fiscal Year

Accounting Records to Keep & Supporting Documentation

Bank Book and Petty Cash Book

Bank Reconciliation Analysis

Bookkeeping Systems

What is Depreciation?

FINANCIAL REPORTS

Who needs Financial Reports? What are the Annual Accounts?

Interpreting Financial Statements: What is a Trial Balance? What are Financial Statements? Income and Expenditure Report, Balance Sheet, Notes to Accounts and Accounting Policies

Ratio Analysis, Management Reporting

The Cashflow Analysis

The Budget Monitoring and Forecast Reports

Analysing Budget Monitoring Reports

Variance Analysis techniques

Action Planning

GRANT MANAGEMENT

Understanding Restricted Fund and Unrestricted Funds

Effective Grant Management

Grant Management Cycle – Pre award, award, post award

Lead Recipient Vs Sub-Recipient

Accounting for Shared Costs and Co-Finance

Capital Grant and Grant Income

Direct Costs Vs Indirect Costs

Reporting to Donor Agencies – meeting deadlines and quality of delivery

Grant Monitoring and Evaluations

Reporting to Beneficiaries

INTERNAL CONTROL SYSTEM

What is Internal Control System? Understanding the Importance

Internal Control System: Policies, Procedures and Practices

Effective Internal Control System - Managing Internal Control & Risks

Good Governance

Documentation – clean, complete, concise, and balance

Various elements – Personnel, Travel, Procurement, Contracts, Assets, Activities, Administration

Information, Communication, Transparency and Confidentiality

Managing Audit and Evaluations

Delegated Authority, Separation of Duties

The Procurement Process: Step by Step

Safety and Security - SOPs

Physical Controls – Safeguarding of Assets

Tips on the Warning Signs of Fraud, Dealing with Fraud, and Irregularities

MANAGING AUDIT

What is an Audit?

Issues and Challenges of Financial Audit

Internal Audit vs External Audit

Social Audit

Proposed Methodology

The consultant will develop a detail training content in consultation with SASAJA and its partners considering needs of partner organizations. The targeted trainee-participants are from non-financial backgrounds or having very low financial literacy. A standard training content for non-government, non-profit organization is expected from the consultant. The content should also include internal control system, procurement management, tax and other applicable compliances and HR management and payroll among others. The training delivery method should be participatory, reflective, and empowering and based on actual case scenario and question-answers. We expects a team of two trainers for effective and efficient training delivery.

Profile of firm/consultant

The trainers to be involved in this assignment should have at least Master’s degree in finance and/or accounting/Chartered Accountancy (CA) and more than ten (10) years of experience in delivering financial management training to NGOs. The firm should have ability to provide competent human resources for this task.

Documents for submission

Interested consulting firm or individuals can apply by submitting the following:

A technical proposal including

• Description of how your skills and experience match the TOR requirements,
• Proposed methodology and work plan
• A financial proposal: should include a detailed budget sheet with breakdowns
• CV of lead consultant
• Profile/experience of the consultancy firm
• PAN/VAT registration certificate
• Tax clearance certificate 2077/78
• Contact detail (Name, designation, organization, email ID and phone no.) of 2 referees

A Financial proposal with per unit cost breakdown of trainer’s fee, training materials/ stationaries, venue+snacks for participants etc. for each module separately.

Submission process: Interested consultants/Firms can submit their applications/proposal with an estimated budget at [email protected] no later than 5 April 2022