TERMS OF REFERENCE FOR PREPARATION OF FINANCE AND ACCOUNTING POLICY MANUAL FOR NANNETTE INVESTMENT LIMITED

I. NANNETTE INVESTMENT LIMITED

Nannette Investment Limited is a Zambian agro-processing and Aggregation enterprise domiciled in Kasama along Luwingu Kasama road. Nannette Investment Limited contracts farmers to produce paddy rice, purchases and processes paddy rice, as well as produces certified seed. The Company is implementing an out-grower scheme with rice farmers in Mungwi District Chambeshi flood plains. The company was established in April 2017 and has been in operation since then. The company contracts 290 rice farmers into an out-grower scheme and provides these with inputs, mechanization tools to aid production and improve productivity. The farmers are contracted to produce a total of 3000MT cultivated on 330ha of land. The company provides formal contracts to 10 lead farmers with demonstrated potential to cultivate large tracks of land. It later purchases the produced rice which is aggregated and sold to millers and some of it is processed at its Kasama processing plant and sold on wholesale to retailers in Lusaka, Copperbelt and on the local market in Kasama. The milled rice is packaged in 25kg, 10kgs, 5kgs, 2kgs and 1kg packages and is retailed to the public. Some of the milled rice is sold to companies that have supply contracts with Shoprite and is branded in their various packages and finds itself on the Shoprite shelves.
In its quest to improve its business operations and management capacity, the company would like to strengthen its financial management capacity and document its processes. This includes the company improving its capacity to produce financial statements that are externally audited as well as improving its ability to use these statements to make sound financial and management decisions that will move the company forward.

Thus, Nannette Investment Limited invites eligible individuals and Zambia Institute of Chartered Accountants registered Non-Auditing Firms to submit their proposals for undertaking a review of the current Financial and Accounting procedures and develop a Financial Policy and Procedures Manual tailored to the company’s business in line with the current existing practices and standards.
The evaluation criteria will be based on Quality and Cost Based Selection procedures described in this Request for Proposals (RFP).

II. OBJECTIVES OF THE ASSIGNMENT

The objective of this assignment is to review the existing procedures with the view to strengthen the finance and accounting systems in the organization so as to ensure that: – Consistent and uniform accounting policies are followed by the various departments within the organization.

III. SCOPE OF WORK FOR CONSULTANTS

Nannette Investment Limited is seeking professional services from reputable consultants (individuals and Zambia Institute of Chartered Accountants registered Non-Auditing Firms) to submit proposals for the review, design and development of the Finance and Accounting Policy Manual. The objectives, detailed scope, timelines and other terms for the assignment are outlined in the sections below. Further, the assignment requires development of comprehensive finance policies and procedures in terms of policy general, procedure general, document control procedures, responsibilities, and change control.

Review and/or development of a Delegation of Authority are required. There is a clear delegation of responsibility matrix available – Processes are in line with International Financial Reporting Standards (IFRS) – Processes are in line with the statutory requirements. – Efficient, accurate processing and accounting of transactions with adequate controls are in place. – A process-based approach is followed to identify, account and monitor revenue and costs. – A proper fixed assets register is kept at all times and that these assets are tracked and secured. – A proper process is in place related to the acquisition and disposal of assets in accordance with statutory guidelines. – A robust financial management information system is in place. – There is Key Relationship Management.

IV. SCOPE OF SERVICES

The scope of services would inter-alia include: Hold consultative meeting with the Nannette Investment Limited Board and Management. Review of existing finance and accounting procedures currently in use. Developing policy manuals for the following functions: – Finance and Accounting – Payroll Operations – Liquidity Management – Cash – Fixed Assets acquisition, update, maintenance, security and disposal – Budgeting for all departments – Staff training to ensure that the procedures as set out in the Manual are understood and can be carried out in line with Nannette Investment Limited expectations. Detailed sub activities to be covered in the above processes inter-alia includes:

1. Finance and Accounting – shall include but not limited to the following areas: – Cash and Bank Accounting – Contracts Accounting – Expense Accounting – Purchasing and Storeroom Accounting – Management Accounts and monthly reports.
2. Payroll Operations – shall include but not limited to the following areas: – Accounting for Employees’ Remuneration and Benefits including leave pay, end of service benefits and Gratuity – Payroll processing (including additions and terminations)
3. Liquidity Management – shall include but not limited to the following areas: – Treasury Management (Fund Planning, Working Capital Management, Treasury Related Accounting).
4. Fixed Assets Policy – Fixed Asset and Depreciation Accounting – Physical verification of Assets and Storing
5. Budgets and Budgetary Control Policy – budgetary system prescribing the following: – Roles and responsibilities for preparation of budget estimates and budget revision. – Budget heads and linking with the account codes. – Budget compilation, finalization, approvals and monitoring process – Budget formats – Appropriation and re-appropriation policy of budget estimates – Budget monitoring reports to be generated (to be part of Financial MIS) – Interface with the financial management and accounting system.
6. Financial Management Information System – Financial MIS, prescribing the following: – Objectives – Types of Reports – Formats – Frequency – Distribution – Responsibility for preparation – Source of data
7. Revised Chart of Accounts so that it fully covers all aspects of Nannette Investment Limited operations as well as linking it to the International Chart of Accounts.
8. Include the requirements of the Enterprise Risk Management (ERM) Programme that is to be implemented. The Finance and Accounting Policy Manual shall also cover the following aspects: – Accounting policies – Key accounting controls – List of documents /records to be maintained – Formats of the accounting documents/records. – Procedure for compliance with all statutory provisions. – Guidelines for the preparation of annual audits. – Closing Guidelines for finalization of Annual Accounts – Implementation of International Financial Reporting Standards (IFRS) accounting only as it relates to the operations of Nannette Investment Limited.
9. Grant funding management, establish procedures for the management of grant funds, including proposal development budgeting, grant financial reporting, and compliance monitoring. Coordinate with program managers and finance teams to integrate grant funding into overall financial management processes.
10. Procumbent and contract management, develop procurement policies and procedures to govern the acquisition of goods and services in a transparent and cost-effective manner. Implement contract management processes to monitor vendor performance, ensure compliance with contractual terms, and mitigate procurement-related risks. Maintain a vendor database and conduct periodic reviews to assess vendor qualifications and performance.

V. TRAINING AND IMPLEMENTATION SUPPORT

The consultants would be required to Conduct a training programme for Nannette Investment Limited Finance and Accounting staff such that they would be proficient in all aspects of the Manual. The consultants would develop in detail the training program and conduct it.

VI. OTHER ASPECTS

Nannette Investment Limited shall make available to the consultant office working space and will avail staff and Board members to sit with the consultant in this participatory review of all current practices and procedures for timely completion of the Manual. The Manual shall cover the activities performed by the Finance and Accounting Department including interfaces with other departments.

VII. TIME FRAME

The Firm / Consultant will have a total of ten (10) working days to conduct this assignment. However, Nannette Investment Limited will requires that this assignment be completed with signed copies of the Manual submitted to the organization no later than two (2) Weeks from the date of execution of the contract.

VIII. ELIGIBILITY CRITERIA FOR CONSULTANTS

The consultant should be a professionally qualified individual or a professional firm and have been providing related consultancy services for a minimum period of five (5) years. The following eligibility criteria are mandatory, non-fulfilment of which will lead to disqualification of the bid: The consultant should have experience in providing advisory services across a range of services in the area of financial management information systems, including design, development and implementation of manuals as well as knowledge of accounting software. The consultant should submit a complete profile of the firm to include CVs of the lead partners or in the case of individuals, details of qualifications as well as reference of related assignments that they have completed.

To be specific,

• Firms: Company / Consultancy Profile.
• Individuals: Curriculum Vitae showing relevant academic qualifications with minimum of 5 years relevant professional accounting and/or business management experience and valid practice registration with ZICA and any other regulatory body.
• Quotation and pricing of services.
• Traceable experience managing a similar assignment will be an added advantage.
• Knowledge on Financial Laws and Taxation is mandatory.
• Excellent writing and analytical skills with commitment to stick to deadlines.

In addition, the following qualifications will be expected for individuals and Key staff for professional firms

• ACCA, CIMA,ZICA, CPA a degree in accountancy, or other relevant qualifications with valid ZICA practicing license as a fellow member

The closing date for submission of proposals is November 18, 2024 at 17.00 hours. The bids should be dropped in a box at Nannette Investment Limited in Kasama at Plot No. 2619 Luwingu Road, Kasama, in the Rice Shop, or be sent to the following email address: emandamag@gmail.com by the date stated above. All queries need to be sent in to the same email address by the 18th November 2024.

IX. CONFIDENTIALITY

All deliberations relating to preparations of the Manual including all information collected from various meetings/documents, primary & secondary data etc. shall be kept confidential and shall not be divulged to any third party either verbally or in writing or in any other form.

X. PRICE BASIS

Lump sum price inclusive of taxes and other disbursements etc. is to be quoted for the preparation of the Finance and Accounting Policy Manual.

XI. PAYMENT TERMS

An advance payment of 25% of the contracted sum within three days of execution of the agreement at which time synopsis and a schedule for preparation of the Manual is to be submitted. First instalment of 25% of the fee within three days of submission of 1st Draft of Finance and Accounting, Payroll Operations, Liquidity Management, Cash Management, Fixed Assets Policy sections of the Manual, Budgets and Budgetary Control Policy, Financial Management Information System section and Revised Chart of Accounts. Second instalment of 25% of the fee within three days of submitting the second draft of the manual that includes NIL comments of the First Draft. Final instalment of 25% of the fee after One week from the date of acceptance of Manual by Nannette Investment Limited.

XII. REPORTING

The consultant(s) will report to the Managing Partner – Finance and Operations and shall work closely with Nannette Investment Limited accounts team, and any relevant NIL team members.

XIII. Conclusion

This Terms of Reference document serves as a roadmap for the development of a comprehensive Finance Policy Manual tailored to the specific needs and operational environment of Nannette Investment ltd. By standardizing financial procedures and enhancing internal controls, the Finance Policy Manual aims to support the company’s growth objectives while ensuring sound financial management practices.