Terms of Reference (ToRs) for a Consultant to Development a Comprehensive Finance and Administration Manual 

PURPOSE

Caritas Zambia (CZ) is seeking an external consultant or consulting firm to provide technical assistance in reviewing and revising its cost structure and policy. The goal is to ensure the appropriate classification of costs as either direct or indirect. CZ aims to establish a standard procedure for allocating direct and indirect costs to project contracts and document this process in the Indirect Cost Recovery (ICR) and Cost Allocation policies. These policies are intended to enable Caritas Zambia to recover full overhead costs, strengthen the organization’s financial management and viability, secure adequate funding for unrestricted income, enhance resilience, and ultimately improve long-term sustainability and preparedness. The implementation of the ICR and Cost Allocation policies and procedures will enhance Caritas Zambia’s financial management, transparency, and accountability, while also increasing compliance with international and local donor requirements. This will assist the organization in fulfilling its mandates more effectively and efficiently. The policies will standardize finance and accounting practices related to cost allocation and recovery, ensuring consistency and providing guidance to management and finance staff in achieving full recovery of both direct and indirect costs. Additionally, the policies will encourage a high level of compliance with established procedures. Any analysis of the cost structure, as well as the ICR and Cost Allocation policies and related documents produced, will be the property of Caritas Zambia. The organization reserves the right to make modifications, amendments, and additions as needed without requiring external permission or approval.

OBJECTIVES

The primary objective of this consultancy is to develop a comprehensive Finance and Administration Manual for Caritas Zambia, including a detailed section on overhead cost allocation policy. The manual should ensure clear and consistent financial and administrative practices, comply with relevant regulations, and support the organization’s financial sustainability.

KEY DELIVERABLES

The consultant is expected to deliver the following:

• An initial assessment report on the current financial and administrative practices.
• A draft Finance and Administration Manual for review, including sections on but not limited to:
  • Financial Management
  • Financial Procedures
  • Procurement and Asset Management
  • Overhead/indirect cost allocation
  • Risk Management and Compliance
  • Information Technology and Data Management
  • Indirect Cost Recovery Policy Cost Allocation Policy
  • Develop a Cost Allocation Policy and the cost allocation method and tool to allow the organization to allocate direct and indirect costs to project contracts.
  • Indirect cost rate calculation method/process
  • Prepare an Indirect Cost rate proposal; define the % of allocated funding needed to cover core mission support administration policies and Monitoring and Evaluation
  • A final finance and administration manual incorporating feedback from Caritas Zambia management and other stakeholders.
  • Training materials and a training session for staff on the new policies and procedures.
  • A final report summarising the consultancy work, including recommendations for future improvements.

KEY WORKING RELATIONSHIPS

The consultant will primarily work with the Caritas Zambia Head of Finance, the Caritas Zambia Head of Programs, and the Caritas Zambia ALLright Fund Program Manager.

TIMETABLE OF ACTIVITIES AND DELIVERABLES

1.Selection process 11th February – 17th February 2025
2. The consultancy is expected to commence on 18th February 2025 and be completed by 14th March 2025
3. The first draft should be submitted by the 28th of February 2025
4 .Second draft by the 14th of March 2025
5 .Final draft by 21st March 2025

The above timeline is tentative; adjustments can be made depending on the offeror’s availability after a discussion with Caritas Zambia. The final timeline will be included in the service agreement between Caritas Zambia and Consultant.

QUALIFICATIONS/EXPERIENCE

Caritas Zambia welcomes applications from an individual or team that has the following experience and skills:

• Good understanding of the NGO context and legal framework in Zambia
• Proven experience in financial management, accounting, or related fields.
• Experience in developing financial and administrative policies and procedures for NGOs or similar organizations.
• Experience in engaging with institutional donors, international organizations, or private foundations would be an advantage
• Experience developing practical and accessible tools for Finance teams to roll out new policies and procedures

EVALUATION CRITERIA

• Administrative Evaluation:
• Mandatory to be 100% responsive to the mandatory requirements:

Eligibility criteria, terms, and conditions of Caritas Zambia.

– Technical Evaluation:
– Qualifications of the firm/previous experience
– Qualification of assigned team/PI
– Responsiveness to the specifications/needs
– Financial Evaluation
– cost & payment terms

APPLICATION PROCESS

Interested candidates should submit the following documents:

• A detailed proposal outlining the approach and methodology for the consultancy.
• A detailed timeline of activities and deliverables.
• A curriculum vitae (CV) highlighting relevant experience and qualifications.
• References from previous clients for similar work.

CONTACT INFORMATION

For further information or to submit your application, please contact: [email protected] and copy [email protected] / [email protected].