REF: MoEWT/NRM/01/2016/PTB/105/2016

TERMS OF REFERENCE

Development of Integrated Financial Management System (IFMS)

Consultancy for Design, Installation and Training of Integrated Financial

Management System (IFMS)

1.0 PROJECT BACKGROUND & SUMMARY

In Puntland, degradation of rangeland resources has continued to put pressure on traditional pastoral
production. Many traditional forms of natural resource management and control systems have been abandoned
or ignored resulting in overutilization and increase in resource based conflicts. Serious environmental concerns
in Puntland include wanton clearing of trees for charcoal production, gully erosion and development of sand
dunes. Trees such acacia are critical for livestock to survive long periods of drought. If rangeland degradation
continues at the same pace, the Horn of Africa by and large will be at risk of desertification, pushing hundreds
of thousands of already struggling Somali pastoralists and agro-pastoralists into abject poverty.

Deegaankaagu waa noloshaada -“Your environment is your life”, is a four years project funded by the
European Union, implemented by CARE International and African Development Solutions (ADESO) in
partnership with the Ministry of Environment, Wildlife and Tourism (MoEWT). It aims to combat rangeland
degradation in Puntland State of Somalia. More specifically, improved and sustainable use of rangeland
resources will contribute significantly to achieving MDG 1, target C, in Puntland State of Somalia, by addressing
the livelihoods of pastoralists, agro-pastoralists and other vulnerable rural people. Restored (and the restoration
of) rangelands will provide productive employment to rural populations through revived rangeland-based
livelihoods and Cash for Work opportunities.

In addition to improving rangeland conditions and promoting sustainable use of rangeland resources, the
initiative also aims to empower local community structures to take charge of NRM issues in their locale,
strengthen institutional capacity of the Ministry of Environment, Wildlife and Tourism (MoEWT) to develop and
implement a policy framework for effective management of rangeland resources.

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2.0 CONSULTANCY BACKGROUND

Preparing financial reports and communicating key administrative and financial information is a necessary and
critical aspect of the smooth functioning of any entity. Administrative and Financial statements are
management tools used in making decisions, in monitoring the achievement and performance of objectives, and
as a standard method for providing information to interested parties and information end-users.

Automated integrated financial management system serves as the vehicle to ensure effective and efficient
information flow in the recording, processing, reporting and analysis of financial and other administrative
resources management of the public sector institutions. Effective and efficient information flow enhances
managerial decision-making, thereby increasing the entity’s ability to achieve institutional objectives.

Using automated systems can save entity’s personnel and management plenty of time. Automated systems
allow faster data entry than manual record keeping and allow collating and printing statements and reports
swiftly and accurately. Because of its efficiency and ease of use, computerized management systems also allow
improving inventory control, expenditure control, budget monitoring, tracking of receivables, thus saving time
and improving cash flow and robust control environment.

Therefore, as part of the Institutional Development component of the Deegaankaagu waa Noloshaada Project,
an institutional capacity assessment carried in 2014 recommended – among other things – the development
automated systems for the management of financial, human resources and procurement aspects of the
Ministry. In the light of this, it has been deemed imperative that MoEWT requires strengthening the public
financial management and other administrative resources management systems and processes of the Ministry,
in particular developing a tailor-made Integrated Financial Management System (IFMS) which entails
assessment, design, installation, trouble-shooting and on the job training of the relevant personnel. The IFMS
system development will result in an interlocked system that combines Accounting, HR and Procurement
information into MoEWT’s financial reporting.

3.0 OBJECTIVES OF THE CONSULTANCY:

The consultancy is expected to achieve the following objectives:

 To design, install and activate tailor-made Integrated Financial Management System (IFMS)
commensurate with the size and scope of the MoEWT financial management, accounting,
asset management, procurement and human resources management needs.
 To improve the systems for accounting and financial reporting for better quality accounting and
timely financial reporting.
 To transform the currently single entry cash based MoEWT accounting system into a double-
entry modified cash basis (a hybrid method that combines the features of both cash basis and
accrual basis of accounting), which complies with the International Public Sector Accounting
Standards (IPSAS).
 To provide on-the-job training to the Finance, Administration, Procurement and Human
Resources Departments’ staff on the use, operation and trouble-shooting of the IFMS system.

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 4.0 SCOPE OF WORK

The Puntland Ministry of Environment, Wildlife & Tourism is seeking the services of a reputable consulting firm
or individual consultants with vast skills and knowledge in accounting, financial management, human resources
management and public procurement to develop and design a tailor-made computerized integrated financial
management system (IFMS) for MoEWT. The system will have capacity to produce various accounting books
and records, statements of accounts, general ledger, journal entries, asset/inventory and stock/supplies reports,
financial reports, trail balance, income statement, statement of financial position, cash flow statement etc. The
system has to comply with International Public Sector Accounting Standards (IPSAS), based on principles of
double-entry bookkeeping.

Similarly, the IFMS system is expected to provide the following Human Resources Management functions:
personnel records, payroll, staff communication, employee administration, training and development,
management of all employees information, reporting and analysis of employee information, benefits
administration, status changes, personal information updating, complete integration payroll with finances,
performance management, training received, disciplinary action, etc.

The system should likewise have automated features that integrate procurement of supplies (goods), services
and works with the functions of finances and human resources management. These -among other things- will
include the following: purchase requisitions , LPOs, supplier registration, automated vendor and consignments
follow up , delivery deadlines and lead-times), commitments and payables, receipt of goods and completion of
works and services, contract management and so forth.

The consultant/consulting firm is expected to:

 Conduct software requirement analysis to define detailed MoEWT IFMS requirements in transaction
recording, account categories, chart of accounts, financial reporting, information flow, types of reporting
contents and formats, access controls, integration of human resources management and public
procurement function to the financial system, among other things.
 Review the existing MoEWT Financial, HR management and Procurement systems and practices.
 Design and install a customized IFMS software package tailored to the needs of MoEWT.
 Test the functionality of the developed accounting software to ensure that the software is operational.
 Provide on-the-job training to the MoEWT Finance & Administration, Human Resources and
Procurement Departments’ staff on the operation, maintenance and use the IFMS system.
 Select a system that have adequate internal control features to ensure posted transactions are not
deleted and that the system has a controlled access and is password protected; self-diagnostic checks
to ensure system’s integrity; data backup and system maintenance procedures.
 Select a system that has adequate features for generating various periodic and timely reports to
MoEWT management and other stakeholders on MoEWT’s financial performance. Reports should,
inter alia, include: monthly, quarterly and annual statements; and all the reports to be used by the
MoEWT management to make necessary management decisions, strengthen the internal control
system and monitor performance.

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  The design and installation of a simple, user-friendly IFMS system tailored to the MoEWT needs. (To
be more economical, adaptation of an existing software package would be more appropriate);

5.0 QUALIFICATIONS AND INPUTS

The consultant/consultancy firm will have the following qualifications:

 The design and customization of the IFMS software should be carried out by qualified
consultant(s)/consulting firm with experience in establishing automated public financial management
systems. More specifically, the consultant(s)/consulting firm should have:

For individual consultants:

 Training and experience in financial management, accounting, human resources and procurement
systems design;
 Experience in similar assignments with proven track record of development of IFMS software and
database applications;
 Knowledge and understanding of public sector financial management, human resource management
and public procurement;
 Knowledge of international public sector accounting standards (IPSAS);
 Experience in the applications of internal control systems and procedures, along with the ability to
assess such systems and to recommend remedial actions where necessary;
 Excellent communication skills and ability to write in English and Somali

For consulting firms:

 CVs of sufficient pool of experienced core professionals specialized in developing IFMS systems;
Financial Management, Human Resources Management & Public Procurement.
 Updated Company Profile;
 Proven track record and experience in undertaking similar assignments;
 Legal establishment for minimum of two years in Puntland;
 Company Registration and license;
 Financial Statements of last reporting period;
 Most Recent Bank Statement;
 Project Completion Certificates from clients for similar undertakings;

6.0 DELIVERABLES

The Consultant/Consulting firm is required to deliver the following:

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  Designed, installed, tested and fully operational tailor-made IFMS system
 On-the-job-training conducted for the MoEWT Administration & Finance, HR and Procurement
Staff;
 Final report summarizing the outcomes of the consultancy with recommendations on future
incremental developments (as necessary) to upgrade the software;
 The original IFMS software package installed to four (4) MoEWT Desktop Computers and a
complete set of software back-up provided;
 Support services provided for one year after installation the system;
 Software Training Manual in both electronic/soft and hardcopy submitted;

7.0 HOW TO APPLY

Interested qualified candidates and consulting firms are required to submit the following documents in a sealed
and stamped envelope to the MoEWT Procurement Unit not later than Wednesday 21 st of September 2016,
11:00 AM:

 Technical Proposal (covering technical specifications, methodologies, outputs etc)

 Financial Proposal
 CV of the consultant(s)
 Work-plan
 Consulting firms legal and financial documents (profile, registration/license, financial statement for the
last reporting period, latest bank statement, project completion certificates for similar projects/activities.