Terms of Reference


Professional services relating to the Preparation of Finance, Accounts and Audit Manuals of Max Foundation Bangladesh Country Office

Organization Max Foundation, Bangladesh Country Office
Duration of Assignment September 19, 2019 – November 07, 2019
Expected Start Date September 19, 2019
Position Type Consultancy
Title of Assignment Professional services relating to the Preparation of Finance, Accounts and Audit Manuals of Max Foundation Bangladesh Country Office
Reportable to Senior Accounts and Finance Manager, Max Foundation, Bangladesh Office

1. Who we are and what we do

Who we are

Max Foundation is a fast-growing business-driven international non-government organization established in 2005 by Joke and Steven Le Poole who lost their eight-month-old son Max to a rare viral infection in the Netherlands. Steven and Joke wanted something positive to come out of Max’s death; to prevent other children dying from easily preventable diseases as well as let Max continue to live and grow through the work of the Foundation. After a global search, they concluded that working on Healthy Child Growth issue using integration of WASH, Nutrition, SRHR and Governance in Bangladesh. We want to create the largest impact with our programs to reduce child mortality in a effective and efficient way. We are a continuous learning organization and use our brain and heart to maximize impact.

Vision and mission

Our vision is a world in which easily preventable diseases are no longer a cause for child mortality amongst children under the age of five.

The mission of Max Foundation is to save as many children’s lives as possible and provide them with a healthy start in life. We want to do this in the most effective and sustainable way.

Max Foundation already reached over 1 million people in rural and urban slums areas in Bangladesh with its MaxNutriWASH projects. Our ambition is to reach an additional 3 million people by the end of 2025 in Bangladesh with our Stunting Free Nation approach.

2. Scope of Work for Consultants

Presently, Max Foundation is implementing its program in Bangladesh through partner NGOs using Payment by Result (MaxPbR) method. For better Financial Management of Max Foundation, Bangladesh as well as Financial Management for partners in SMART way, it becomes inevitable to review its existing MaxPbR and Country Office Finance and Accounts Policy Manuals.  Therefore, Max Foundation needs a Comprehensive Handbook using SMART indicators covering Finance, Accounts and Audit procedure to better implement our programs and management strategy.

Max Foundation is seeking professional services from reputed consultants (Individual/Firm) to design and develop financial/Accounts/Audit manual for Max Foundation Bangladesh Country Office and MaxPbR. The objectives, detailed scope, timelines and other terms etc. for the assignment are outlined in subsequent parts of this document.

3. Objectives of the Assignment:

The objectives of this assignment are:

  • Review and develop a Comprehensive Handbook of Finance, Accounts and Audit management for Max Foundation Bangladesh Country Office using SMART indicators.
  • Review MaxPbR financial management method and develop a Comprehensive Handbook of MaxPbR for Finance and Accounts Management of Partner NGOs using SMART indicators.
  • Develop tools for Financial Data Visualization and financial reporting.
  • Provide training to the MF staff/s on the developed Manuals

The guiding principles of this assignment are to streamline the financial management function in the organization so as to ensure that:  

  • Consistent and uniform accounting policies are followed across all locations (i.e. Country Office, Regional Offices and at PNGOs Level);
  • Clarity with respect to transactions accounted with regard to personnel functions;
  • Clear delegation of power matrix available;
  • Processes are in line with the statutory requirements;
  • Efficient, accurate processing and accounting of transactions with adequate control in place;
  • Process based approach is followed to identify, account and monitor budget and expenditure for the organization;
  • Robust management information system;

4. Scope of Services:

The scope of services would inter-alia include:

A) Review of the existing policies:

  • Review of the existing Finance and Administrative manual
  • Review of the existing Financial Management Policy for PNGOs
  • Review of the existing Payment by Result (PbR) Financing model for PNGOs

B) Developing a Comprehensive Handbook of Finance, Accounts and Audit management for Max Foundation Bangladesh Country Office using SMART indicators for the following functions:

  1. Finance and Accounts
  2. Budgeting and MIS
  3. Internal Audit
  4. Financial MIS

Detailed sub activities to be covered in the above processes inter-alia includes:

1) Finance and Accounts policy Manual – the finance and accounts policy manual shall include the following areas:

  • Fixed assets management.
  • Travel management.
  • Cash and Bank Accounting.
  • Contracts Accounting.
  • Expense Accounting.
  • Accounting for Employees’ Remuneration and Benefits including EPF and Gratuity in the Books of Max Foundation.
  • Procurement, Purchase and Store Accounting.
  • Advance/Loan Accounting
  • Treasury Management (Fund Planning, Monitoring/Working Capital Management, Fund Related Accounting).
  • Investment Accounting (EPF and Gratuity)
  • Financial Reporting (Periodic & Annual).
  • Chart of Account (The chart of Accounts shall be provided by the consultants which should be compatible with the ERP environment to be implemented by Max Foundation).
  • Incorporation of Guidelines relating to finalization of accounts.
  • Interpretation of relevant Accounting Standard applicable to the Non-profit organization.
  • The Consultant may consider the implication of ERP solution pertaining to financial management and other matters as Max Foundation is in the process of introduction of ERP package.
  • Impact of change due to implementation of IFRS.
  • Procedure for compliance of all Statutory provisions including Income Tax Act, 1984, NGOAB Act-43, 2016, Service Tax, Labor Law, 2006 etc. applicable to Max Foundation

The accounting manuals shall cover the following aspects:

  • Accounting policies.
  • Key accounting controls
  • List of documents /records to be maintained.
  • Formats of the accounting documents/records.

2) Budget Policy Manual – 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 accounting system.

3) Internal Audit Manual  

  • Foundation of Internal Audit including background of Internal Audit, Role of Auditors etc.
  • Managing Internal Audit (Organizing the department, Audit Staff, Engagement Memorandum).
  • Check list of Audit Programme
  • Audit Reports Replies & Communications (Form & Content of Audit Report).
  • Relationship Management (Audit Committee, working with external auditors)

4) Financial MIS - Financial MIS, prescribing the following:

  • Objectives
  • Types of Reports
  • Formats
  • Frequency
  • Distribution
  • Responsibility for preparation
  • Source of data

The finance and accounts manual should be prepared keeping in view compliance to statutory obligations/provisions, various accounting and auditing standards issued by ISA/BSA, IAS/BAS, IFRS/BFRS, approved policies of Max Foundation as relevant.

C) Develop a Comprehensive Handbook of MaxPbR for Finance and Accounts Management of Partner NGOs using SMART indicators as to lead the following functions:

D) Develop tools for Financial Data Visualization and financial reporting

  • Monthly/Quarterly/Bi-annually/Yearly Financial Progress Report
  • Quarterly/Bi-annually/Yearly burn rate
  • Quarterly/Bi-annually/Yearly budget matrix
  • Quarterly/Bi-annually/Yearly Financial Risk Matrix and Risk mitigation plan

E) Training and implementation support

The consultants would conduct an impact training to Max Foundation’s staff (Maximum 10 persons) for the manuals. The consultants would describe in detail the manner in which training would be provided.

5. Support/ input from MF:

In order to complete the assignment properly and within due time, MF will provide access to the relevant documents, records, and statement for due analysis and supplying copy of required documents when necessary. The major records and documents that should be reviewed will include, but not limited to, the followings:

  • Existing Financial and administrative policy;
  • Finance and Accounting guideline for PNGOs;
  • Existing Assets Management Policy for PNGOs;
  • Contributory Leverage Guideline for PNGOs;
  • Guideline for Payment by Result (PbR) Financing to PNGOs;
  • Books of accounts and registers (e.g., fixed asset register, cheque issue register, accounts receivable register, accounts payable register, advance register etc.);
  • Latest Organogram of MF; and
  • Other related documents when necessary.

6. Deliverables:

The consultant (Individual/Firm) will deliver the following deliverables according to the ‘’Scope of services’’ under clause no. 4, Section A, B, C ,D and E of this document:

  1. A brief review report of the existing policies
  2. A Comprehensive Handbook of Finance, Accounts and Audit management for Max Foundation Bangladesh Country Office using SMART indicators
  3. A Comprehensive Handbook of MaxPbR for Finance and Accounts Management of Partner NGOs using SMART indicators
  4. Develop tools for Financial Data Visualization and financial reporting
  5. An impact training to Max Foundation’s staff for the manuals.
  6. MFB’s readiness and process to implement New Manuals

7. Time frame:

The assignment should be completed within 06 (Six) weeks from the start of work at client’s office.

8. Roles and responsibilities of the Consultant and Max Foundation 

The consultant is expected to complete all activities listed under clause no. 4 (Scope of services), Section A, B, C, D and E in consultation with the Max Foundation Bangladesh Team, within the given timeframe (Section 7). The Senior Accounts and Finance Manager of Max Foundation Bangladesh will be the main contact person for the consultant. It is expected that the consultant will inform the progress of the activities to MFB time to time. Technical input and support will also be provided by the MFB’s Senior Accounts and Finance Manager.

9. Payment for the assignment:

In this section, assignment cost will be finalized after receiving and selecting the RFQ with a financial proposal from the different consultant/s (Individual/Firm).

The Consultant/s (Individual/Firm) is/are requested to provide time plan for the assignment mentioned in the Clause 4 (Scope of Services) and provide section (A, B, C, D and E) wise fee including VAT and Tax.

10. Eligibility of the individual Consultant/Firm

  • At least 05 years of experience in the related field (professional services).
  • Expert knowledge and practical experience on financial management system review of a commercial entity, NGO and donor organization.

11. Submission of Application

Interested Individual/Firm/ Organization is requested to submit an electronic application to: hrmmfb@gmail.com  , no later than 18 September 2019 by 05:00pm, late application submissions will be rejected.

Application Package:

  • Individual/Firm/Organizational profile (not more than 3 pages)
  • Application letter explaining why the Individual/ firm/organization/ is the most suitable for the work;
  • CV of the team including team leader and copies of educational qualifications and relevant experience;
  • Financial proposal. The financial proposal shall specify a total lump sum amount breaking down the professional fee and relevant cost, if any. Attach price offer (in BDT) with electronic signature;
  • A Sample of copy previous Manuals developed (electronic or hard copy is okay – both are not necessary);
  • For individual attach TIN and for firm/organisation attach organization trade license/registration, VAT and TIN registration;
  • Attach your financial, technical proposal, necessary papers, CV, profile etc. as required with the mail and in one zip folder

Note: Max Foundation reserves the right to accept or reject the RFQ with the financial proposal without any derogation.