Terms of Reference: Evaluation & Revision of Financial Systems and Processes

Background

CLEAR Global is a US non-profit organization supporting people to get information and be heard, whatever language they speak. It is a fully dispersed organization; our team members live in over 40 countries. We have no physical headquarters; there are 4 country offices (Nigeria, Bangladesh, DRC, and Ukraine). Our business model is complex: we have several different types of income: service agreements/contracts, grants of restricted funding mainly from institutional donors, and donations and sponsorships. The service agreements/contracts have 2 distinct business models and fund very different operations (one for language services and one for development of language technology, research, and other products). In addition, we work in multiple currencies, have several bank accounts, and make payments via a range of methods, depending on what is possible.

CLEAR Global is outgrowing its financial systems and processes. Our QuickBooks instance, finance manual, and many of our internal processes worked well for the organization a few years ago. However, our income has increased over 1000% and the complexity of our operations now require an overhaul of the systems.

Objectives

The main objectives of the consultancy are to:

• Evaluate the current financial systems and processes and how they link to procurement and other relevant systems.
• Make recommendations on new systems and processes, possibly including a change of finance software and integration of other systems (CRM, project management, cash flow, banking, expenses, procurement, payroll)
• Revise the Finance Manual and Internal Control Framework in line with the Strategic Plan. This will be in close consultation with the leadership team, Board of Directors and staff, in compliance with partners and donor requirements. This should include:
  • Developing an effective financial management policy
  • Recommending proper systems of delegation of authority for its head and branch offices
• Working with the HR team, and the leadership, develop a change management plan for the organization to move to the new systems and processes smoothly.

The operational scope of this consultancy service will include:

• Evaluate the current system

• Review the current Financial Management Manual and donor requirements

• Evaluate the current finance manual and financial policies against best practice of similar institutions.

• Review related internal policies with the aim of developing consistent finance processes and policies.

• Review internal control documents and develop an internal control framework taking into consideration changes in the internal and external environment.

• Review financial background documents, including audit reports issued in the last two years and any other recommendations from stakeholders

• Make recommendations to improve/change the system

• Meeting with team members (Global/remote and in country offices) to understand needs and expectations for financial management. Where relevant the consultant may interview partners.

• Revise Finance Manual and other relevant policies and processes

• Suggest/recommend a more efficient software/ technology and integrations for better oversight and management of financial resources and integrations with other systems, in consultations with the platform technology team.

• Identify areas of duplication and unnecessary bureaucracy

• Develop financial policies and update existing management manual

• Get agreement from the CFO and CEO on the new policies

• Implement new systems and process

• Finalize policies and manuals based on input from the CFO and CEO

• Work with CFO and platforms team to develop and roll out a new finance system and integrations

• Ensure the systems are able to deliver automated dashboards or reports which provide for timely monitoring of all key organizational metrics (cash flow, accounts receivable, BVA, income, project income (pipeline), financial management reports e.g. monthly organization management accounts, statutory reports, etc.)

• Provide training on recommended policies and procedures and software/technologies on how to use them for those who are directly involved with financial and overall management.

The process will be led by an independent consultancy firm or individual consultant(s) skilled in the field of international non-profit finance and US statutory financial reporting. The consultant will be guided by the Chief Finance Officer and the Chief Executive, with support from the finance team members.

The consultant(s) will ensure that the new systems and processes improve organizational effectiveness and efficiency and are in line with the current trends and standards in the NGO sector. The outputs should ensure that CLEAR Global’s finance systems are:

• Relevant: Meet the requirements of the organization in terms of audit standards, financial management, management reporting, and donor reporting.
• Effective: Ensure accurate, transparent and timely financial reporting that facilitates decision making
• Efficient: Intuitive and easy to use; ensuring that all relevant internal stakeholders have easy access to the financial information they need
• Sustainable: Capable of flexing and adjustment to support organizational growth and financial trends.

Deliverables:

• Deliverable 1: Proposal for work plan and budget.

• Deliverable 2: An internal review exercise report written in English with the following outline:

  • Executive summary
  • Introduction
  • Report on the research and evaluation of the existing manuals
  • Methodology
  • Findings (Relevance, Effectiveness and Efficiency)
  • Recommendations based on the findings.
  • Annexes
    • Clearly mapped out processes for purposes of new finance system configuration -
    • Updated chart of accounts for the new finance system
    • Updated budgeting and program accounting templates

• Deliverable 3: New system(s) and processes, with implementation plan that is agreed by CEO and CFO

• Deliverable 3a: Draft Finance Manual, Procurement manual, and relevant policies for review and inputs by management and Board of Directors (optional).

• Deliverable 3b: The final copies of Revised Finance Manual and relevant policies and SOPs/internal control framework.

• Deliverable 4: implantation of new systems and processes, as agreed.

• Deliverable 5: Training workshop for staff on the updated policies and procedure manuals and report on the same.

Timeframe:

30 January - 30 May 2023. All outputs to be finalized by 30 June 2023

Requirements:

• Minimum of 5 years’ experience in managing/offering advisory services to institutions/programs for effective financial management. This includes, but not limited to development of SOPs and internal control frameworks.
• Proven experience in Enterprise Resource Planning (ERP) including design of financial management information systems (FMIS).
• Knowledge of international development and humanitarian operations
• Knowledge of US statutory financial reporting requirements
• Demonstrated knowledge of government regulations in the US, donor requirements and regulations.

Corrupt or Fraudulent Practices

The call requires that the applicant observes the highest standards of ethics during the procurement process and execution of the contract. The following terms are defined as; a) “corrupt practice” means the offering, giving, receiving, or soliciting of anything of value to influence the action of a public official in the procurement process or in contract execution; and b) “fraudulent practice” means a misrepresentation of facts in order to influence a procurement process or the execution of a contract to the detriment of the organization, and includes collusive practice among (prior to or after tender submission) designed to establish tender prices at artificial non-competitive levels and to deprive the Procuring entity of the benefits of free and open competition; The procuring entity will reject a proposal for award if it determines that the tenderer recommended for award has engaged in corrupt or fraudulent practices in competing for the contract in question.

CLEAR Global Responsibilities:

To facilitate the consultancy work, CLEAR Global will:

• Prepare a consultancy contract with the consultant(s).
• Make financial consultancy payments directly to the consultant(s) in accordance with the contract.
• Inform, and mobilize its CFO, CEO, relevant team members and key stakeholders to participate in the various stages of this exercise.
• Provide all relevant background documents or reference materials including, current manuals and working partner policies etc. to assist in the implementation of the consultancy assignment.
• Organize internal validation meetings of the review exercise and other meetings/training as agreed upon with the Consultant.

Submission

Interested candidates should submit a proposal regarding this consultancy which should include the following:

In one document, uploaded as 'Cover Letter':

• Description of company/organization/personal profile
• Previous relevant experience – listing previous work relating to manuals and standard operating procedures
• Proposed methodology and proposed consultancy work plans

In one document, uploaded as 'Resume':

• Attach 3 copies of similar work done/ contracts or LPOs.
• CVs of person(s) to carry out the assignment and their contact details. The consultants should be members of relevant professional bodies

In the 'References' field:

• Current contact details of three referees. Preferably, referees who can attest to previous support in developing/revising finance systems

In the 'Desired Salary' field:

• Proposed cumulative consultancy fee by deliverable, including a breakdown of the calculation

Please submit all tender documents by 17:00 CET 20 January 2023.