CALL FOR PROPOSAL (CFP)
Automated financial management System for BRA, Mogadishu

Date of issue: November 13, 2012

Closing date: November 30, 2012

Closing time: at 5:00PM, November 30, 2012

1. Background

Benadir Regional administration (BRA) in partnership with IOM’s Transitional Initiative for Stabilization (TIS) is planning to establish an automated financial management and reporting system that will result in increased revenue collection, efficient financial reports and improved transparency

IOM TIS undertook assessment on the existing financial management requirement of the municipality. The assessment focused primarily on accounting & budgeting practices, internal control & audit Procedures, human resources availability, financial reports generated, availability of infrastructure. The assessment revealed that “BRA uses old financial accounting guidelines from Italian administration times. There is no formal legal framework available for municipal roles and responsibilities. The chart of accounts, types of ledgers prepared, monthly and yearly reports prepared are very basic. It is difficult to get a clear picture of current financial position of the municipality and almost impossible to evaluate previous year’s performance. There is, therefore, need to establish and implement a transparent financial management system to bring clear checks and balances and improve the municipality’s accountability”

IOM TIS is therefore calling proposals from interested companies to develop and install automated financial management software in BRA. The software should be user friendly and easily adoptable by the municipality staff. At present most of the users in the municipality are not speaking English. The software should, therefore, be able to display interface in Somali language.

Detailed system analysis should be carried out before the actual implementation of the software. The software should be customised to incorporate the accounting formats in use, and tax tariffs in place. The system should thoroughly be tested before deploying to the computers.

  • 2. Scope of the assignment under this CFP

The Scope of the assignment is as follows;

    • 2.1 Establishment of an Automated Accounting & Revenue Collection systems with the following minimum functions
    • a. Accounting Functions
    • b. Payroll Functions
    • c. Revenue Collection Functions
    • 2.2 Equip the municipality with the required hardware, software and Local Area Network to support the automated system. The following are recommended:
  • a. Database : 1 Centralised Server
  • b. Accounting Section : 2 Work stations (Computer, UPS, Printer)
  • c. Revenue Collection Section : 3 Work Stations (Computer, UPS, Printer)
  • d. Local Area Network : The components should be connected in Local Area Network
  • e. Software : The computers should run on Current Microsoft Operating System
  • f. Relational Databases should be used for storage of Data
    • 2.3 Training of finance staff in BRA on International Accounting Standards

The municipality is currently using very old accounting procedures defined during the Italian administration. The accounting staff should be extensively trained on the correct standards in accountancy to be followed. The training should consist of at least the following:

  • · Double Entry Accounting Standards
  • · Chart of Accounts
  • · Journals & Ledgers
  • · Preparation of Financial Statements
  • · Budgeting
  • · Cash Management
  • · Procurement & Payments
  • · Concept of Cost Centres
    • 2.4 Training of finance staff on Basic IT Concepts & Troubleshooting

The municipality has recently started training its staff in Information Technology. Refresher training on Basic IT concepts and troubleshooting should be provided to the municipality staff. The training should at least contain the following:

  • · Concepts of Hardware & Software
  • · Operating Systems (Windows XP/Windows 7)
  • · Office Applications (Excel, Word, Access, Power Point)
  • · Concepts of Local Area Networking
  • · Concepts of Internet

    • 2.5 Training of staff on Automated Financial Management System

Provide a comprehensive training on the introduced Financial Management system for the Finance Department Staff, Audit department and Cashier section. The roles and responsibilities should be clearly defined for the usage of the system. Necessary authorizations and work-flows should be incorporated and trained to users. The training should consist of at least the following:

Managing Chart of Accounts, Definition of Budget, Transaction Processing (Revenue Receipts, Payment Vouchers), Cash & Bank Reconciliation and Preparation of Financial Reports (Cash Book, Ledgers, Income & Expenditure Report, Balance Sheet Report)

    • 2.6 Training to Senior Management

IT awareness for the senior management staff is critical for the success of implementation of automated Systems. Management should be made understand the advantages and benefits of having an automated system and increase their participation in the usage of these tools, to build their efficiency in decision making.

The Training should consider the following:

  • · Monitor and Understand the Tax Payers Database (Property Tax, Business Licenses etc.)
  • · Tariff Settings for Various Taxes & Fees
  • · Reconciliation of Daily Collections
  • · Setup Procedures for Outstanding Debit Collection
  • · Introduction of Incentives based on performance
    • 2.7 Operations and maintenance Support

Provide adequate on-site and remote support to users on the new automated systems during the initial 3 months of implementation as the users are very new to the automated Systems. Ad-hoc training should be provided as and when required by the users during the first 6 month of implementation.

3.0 Awards and Funding

Through this RFA, IOM-TIS will award contract to one company or individual to undertake the automated financial management System for Benadir Regional Administration in Mogadishu, Somalia

4.0 Eligible organizations

Applications are invited from the full range of private sector firms active in Kenyan and Somalia with expertise and capacity in financial management especially municipal finance as well as information technology. IOM-TIS also seeks to encourage the participation of individual consultants that may be working in the field of municipal finance management with previous work experience with local government institutions in Somalia

5.0 Applications and Evaluation Process

5.1 Applications

Applications in response to this CFP must be received by the IOM-TIS no later than 5:00 p.m. on 30th November 2012, for consideration. It is not anticipated that late applications will be reviewed. However, IOM-TIS reserve the right to consider any application for review at its discretion.

Application Papers shall consist of:

• A completed application cover page

• Program concept (maximum 1 pages) detailing how the assignment will be done;

• A one page summary budget; and

• A copy of the organization’s registration certificate either in Kenya or Somalia or both

Applicants shall submit an original and signed one (1) copy of their concept paper, in English, in font no smaller than size 12, to the address below as well as an electronic version of the application to the following addresses: [email protected]

All application papers must be signed with an original signature by a representative authorized to commit the resources of the organization. Applicants are encouraged to write clearly and concisely and limit the narrative project concept to no more than 5 pages and one (1) page summary budget.

5.2 Evaluation process

The TIS IOM will establish a review panel that includes representatives from IOM Somalia. The committee will include 3 reviewers and evaluation will be based on the criteria set forth below. The review panel, using the criteria detailed below, will rate applications and make awarding recommendations to the IOM-TIS management.

All technical reviewers will be subjected to a screening process to eliminate any conflict of interest. IOM will instruct the technical review committee to evaluate all applications according to the criteria established in this section and weighted as follows:

  • 1. Valid registration in Kenya/Somalia or both
  • 2. Previous experience in development, installation of and training on municipal financial management system in Somalia
  • 3. Organizational capacity to manage the assignment in terms of human resources capacity, financial capacity and ability to travel to Mogadishu to undertake the assignment

5.3 Instructions to the Applicant

Applications must be received on or before 5:00 p.m. Nairobi, Kenya time on November 30, 2012 to the following address:

TIS IOM Nairobi Support Office

Procurement/logistics unit, TIS IOM

Transition Initiatives for Stablization (TIS)

International Organization for Migration(IOM)

Gitanga Groove-Off Gitanga Road

PO Box1810-00606

Nairobi, Kenya