REQUEST FOR PROPOSALS FOR THE INDEPENDENT EVALUATION OF A FINANCE DEVELOPMENT PROJECT IN IRAQ At Norwegian Red Cross

The Norwegian Red Cross is part of the Red Cross Red Crescent Movement, which consists of 191 National Societies, The International Federation of Red Cross and Red Crescent Societies (IFRC) and The International Committee of the Red Cross (ICRC). The Red Cross Red Crescent Movement is the world’s largest humanitarian network and represents an estimated 14 million volunteers in 191 countries.

I. Background & Evaluation Objectives

In the aim of promoting results-oriented decision making and a learning culture at the Red Cross and Red Crescent (RCRC) movement, an evaluation to the first phase of the Finance Development project conducted at the Iraqi Red Crescent is being assessed according to this Terms of Reference.

The project, initiated in 2018 and supported by a consortium comprising International Committee of the Red Cross (ICRC), Danish Red Cross, German Red Cross, Finnish Red Cross and Norwegian Red Cross aims at building the finance management capabilities of the national society through providing the required technical support via a third-party consulting firm.

The project involves (not limited to) the installation of an Accounting software, restructuring of the Iraqi Red Crescent finance department, finance staff recruitment and training, procurement of IT equipment and working on HR, payroll and asset management.

The General Objectives of the evaluation are as follows;

1- Validate the finance development needs, gaps and recommendations listed in the diagnostic assessment exercise and the relevance of the actions undertaken to build the capacities at IRCS

2- Assess the effectiveness of the implementation process and the efficiency of the services provided during the period 2018-2020

3- Evaluate the impact of the accomplished modules including “Financial Management”, “Budget and Donation Management”, “Purchases” and “Purchases and “Stores and Inventory”

4- Provide recommendations on future steps required to build further and more sustainably the finance development capabilities at IRCS

5- contribute to the informing of the design stage of the next phase of the project.

II. Evaluation Criteria and Questions

The assessment is expected to provide comprehensive analysis and recommendations on the below areas categorized according to the 5 DAC criteria; relevance, effectiveness, efficiency, impact and sustainability. The evaluator, guided by the information being received from the key stakeholders, can expand beyond the questions raised in this TOR. Furthermore, it will be an added value to provide observations on success and gaps observed in the different stages of the program cycle to further strengthen the process in the future.

Relevance:

• The methodology employed to conduct the diagnostic assessment exercise including (not limited to) adequate consultations with key stakeholder and suitability of tools applied.
• The accuracy of the highlighted gaps listed in the diagnostic assessment report and the relevance of the recommendation provided to promote the financial management capabilities of IRCS.
• The fitness of the hardware and software installed to boost the capabilities of the relevant technical teams in effectively accomplishing their duties.
• The relevance of trainings conducted to improve the capacities of the staff and promote efficiency and productivity.
• The suitableness of the IRCS staff and departments/units selected to be involved in both the developmental and capacity building initiatives

Effectiveness:

• The compatibility of the needs highlighted and proposed road map in the diagnostics assessment exercise with the planned/achieved interventions during the design and implementation phases
• The timely and successful completion of the decided upon initiatives listed in the plan of action and agreements, including (not limited to) the following modules; Financial Management, Budget and Donations Management, Purchases and Purchases, stores and inventory
• The ability to purchase and properly install the required hardware and software according to the required specifications
• The adequate and accurate reporting of the project progress by the implementers
• The availability of a technical system to monitor the implementation and channel feedback from internal and external stakeholders

Efficiency:

• The cost-effectiveness of the human resources (including number of consultants and experience level), services provided, initiatives implemented, in addition to the procured items
• The level of the internal and external stakeholders’ awareness and comprehension of the gaps in the financial management system and their level of support to improve the internal capabilities
• The efficiency of the coordination and flow of information among all involved parties and according to the signed agreements and coordination structures established; these include the national society, the implementors and the relevant RCRC partners
• The adequacy of communication initiatives achieved to advocate for financial management development and promote the achievements of the project
• The ability of key relevant staff at IRCS involved in the project to balance between developmental and operational tasks

Impact:

• Overall observed changes in the frequency, comprehensiveness, accurateness of financial reports provided to partners, and in conformity with the RCRC movement and international standards
• The direct and indirect impact of the completed components of each (separately) the “Financial Management”, “Budget and Donation Management”, “Purchases” and “Purchases, Stores and Inventory” modules on the overall financial management system, the strategic financial planning, the humanitarian operations, the efficiency of the staff and departments, the financial documentation and reporting to partners.
• The direct consequences of the developmental process on achieving financial transparency and accountability within IRCS
• The knowledge gained from trainings and peer to peer support conducted to the IRCS staff and its impact on their productivity

Sustainability:

• The efficacy and requirements of the current institutional knowledge approach employed at IRCS and the ability to preserve the capacities gained during the developmental process and capacity building initiatives
• The forecasted risks identified and mitigation actions required to be able to proceed with future finance development initiatives
• The key positions prioritized to secure the impact of the project and knowledge gained by IRCS and the incentives required to limit relevant staff turnover

III. Methodology

The evaluation will utilize a mixed-methodology approach including both qualitative and quantitative data. The aim is to triangulate information, provide empirical evidence on the observations and descriptive feedback from key stakeholders.

The information should be extracted from multiple sources to ensure comprehensiveness and reliability of the information, this will include (not limited to); Senior Management of IRCS, finance and accounting staff, representatives of other departments/units at the HQ level indirectly impacted by the project, finance focal points at branches and centres, representatives of the national society partners involved in the project, etc.

The key project documents comprising proposals, agreements, MOUs, plans of action, progress reports, organizational chart, etc. will be used to provide a broad understanding of the financial management needs, the plans devised and executed project initiatives.

A perception survey will be administered to collect quantitative information on the opinions of staff regarding the finance development process and its impact on their work, productivity and results. The survey should include HQ and field staff, and the results will be analysed according to the previously mentioned disaggregation. Other quantitative secondary data could also be used to validate observations and recommendations, such as training tests and assessments, accounting records, financial information and reports, etc.

The main source of data will rely on the qualitative initiatives, including both KIIs and FGD. The former is expected to be applied on key employees such as senior and middle management positions, employees at the finance and accounting department and representatives of the partner national society. As for the FGDs, the targeted positions will be staff from different departments indirectly benefiting from the project, in addition to staff from the branches and centres.

IV. Deliverables

NorCross expects the following deliverable from the evaluator(s) in accordance with the timetable proposed in the inception report and the final deadline listed in this TOR;

1- Inception Report providing sufficient information on the methodology that will be used, questions that will be answered in the study, the evaluation interventions and timetable, in addition to the qualitative and quantitative assessment tools

2- A draft report structured according to the DAC criteria and including all observations and recommendations

3- A validation session with key IRCS and partner national society representatives to discuss the findings and collect feedback

4- A final report that includes the input collected from the validation session

V. Timeframe

The evaluation timeline is expected to be kicked off 15^th November 2021 and concluded in 15^th December 2021 by submitting the final deliverables requested above.
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VI. Evaluation quality and ethical standards

The evaluators should take all reasonable steps to ensure that the evaluation is designed and conducted to respect and protect the rights and welfare of people and the communities of which they are members, and to ensure that the evaluation is technically accurate, reliable, and legitimate, conducted in a transparent and impartial manner, and contributes to organizational learning and accountability. Therefore, the evaluation team should adhere to the evaluation standards and specific, applicable process outlined in the IFRC Framework for Evaluation. The IFRC Evaluation Standards are:

1- Utility: Evaluations must be useful and used.

2- Feasibility: Evaluations must be realistic, diplomatic, and managed in a sensible, cost effective manner.

3- Ethics & Legality: Evaluations must be conducted in an ethical and legal manner, with particular regard for the welfare of those involved in and affected by the evaluation.

4- Impartiality & Independence; Evaluations should be impartial, providing a comprehensive and unbiased assessment that takes into account the views of all stakeholders.

5- Transparency: Evaluation activities should reflect an attitude of openness and transparency.

6- Accuracy: Evaluations should be technical accurate, providing sufficient information about the data collection, analysis, and interpretation methods so that its worth or merit can be determined.

7- Participation: Stakeholders should be consulted and meaningfully involved in the evaluation process when feasible and appropriate.

8- Collaboration: Collaboration between key operating partners in the evaluation process improves the legitimacy and utility of the evaluation.

It is also expected that the evaluation will respect the seven Fundamental Principles of the Red Cross and Red Crescent: 1) humanity, 2) impartiality, 3) neutrality, 4) independence, 5) voluntary service, 6) unity, and 7) universality. Further information can be obtained about these principles at: www.ifrc.org/what/values/principles/index.asp

VII. Evaluator(s) qualifications

To be eligible to respond to this Request for Proposal (RFP), the proposer must demonstrate sufficient capacity, resources and experience to cover the scope of work. Any proposer that fails to meet all the requirements will not be evaluated.

The composition and make-up of the team needs to take cognizance of the expected deliverables and have sufficient professional and technical expertise including knowledge of the financial, legal, technical and risk elements that need to be covered. There must also be a general awareness of the existing institutional and policy environment that frames the context within which humanitarian response organizations work.

At a minimum, the consultant/firm should:

i) Have experience in previous evaluations, especially those related to organizational change and institutional development

ii) Include a team leader/member, possessing a CPA/ACCA or equivalent finance/accounting qualification with a minimum of ten years working experience in developing financial systems for organizations working in the humanitarian/development sector. Red Cross Red Crescent experience will be an added advantage.

iii) Proof of experience providing similar services with organizations similar to IRCS.

iv) A minimum of at least three references of clients to which they have provided similar services within the last five (5) years.

v) A core team made up of experts in the areas of: Accounting, financial management, budgeting, donor reporting, internal controls, audit and institutional development.

vi) Team members who are fluent in English. The knowledge of Arabic would be highly desirable.

Conflict of Interest

All firms/consultants should identify any Conflict of Interest or Independence matters and how these will be addressed. Conflicts of Interest can arise in the following circumstances:

· In the case where the firm is a statutory auditor of IRCS; and

· In the case where the firm is a statutory auditor of a major partner/donor of IRCS.