TERMS OF REFERENCE – FRAME CONSULTANCY CONTRACT
Background
Tanzania has for several decades been among the development partners of Norway and is at
present one of Norway’s main partner countries. The focus of the Norwegian support is to
contribute to Tanzania’s economic growth and poverty reduction. The support focuses mainly
on General Budget Support, Good Governance, Natural Resource Management/ Environment,
Energy and Health.
The administration of Norwegian development cooperation is to a high degree delegated to
the Norwegian Embassy in Dar es Salaam. Each cooperation partner is obliged through the
programme or project agreement to furnish the Embassy with budgets, work plans, financial
statements and audit reports on the use of the support provided by Norway. The Embassy has
identified a need to secure a thorough understanding and proper follow-up among its
programme officers regarding such matters. To strengthen their capacity, the Embassy will
enter into a frame contract for assistance in analysing and following up such documents, as
well as related tasks.
As part of the support to the Natural Resource Management/Environment, the Embassy plans
to enter into agreements with a substantial number of grant recipients. Experience shows that
many grantees have limited capacity for accounting and sound financial management. The
Embassy therefore wishes to use the frame contract to assist the grantees to improve their
financial management practices.
The purpose of the frame contract is to ensure quick access to consultancy services in this
area, without having to enter a new contract for each individual assignment. It is anticipated
that the frame contract will bolster the Embassy’s capacity and also contribute to increase the
ability of Tanzanian cooperation partners to manage development cooperation resources in a
satisfactory manner.
Assignments
The contract will cover two types of assignments:
1. Assignments related to advising the programme officers at the Embassy.
2. Assignments related to assisting grant recipients to improve their financial
management practices
The two types are described in greater detail below:
1. Advising programme officers at the Embassy
The contract will cover ad-hoc assignments related to advising the programme officers in
developing, analyzing and running programs. It is expected that the assignments will fall into
three main categories:
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a. Fiduciary risk assessments of institutions and analyses of programme documents,
examples of possible assignments:

Give advice and possibly perform an assessment in order to establish whether
potential or actual recipients have the necessary internal control and administrative
procedures to ensure that granted funds will be utilised in an accountable and
transparent manner.

On request, provide advice on the quality routine controls of the partner institution.

Assess whether the control routines are adequate for financial monitoring of
programmes.

Give advice on the use of local auditors, and on the role, integrity, qualifications,
and competence of different local auditors.
b. Assistance in relation to analysis of work plans and budgets, progress reports,
financial statements, and audit reports, examples of possible assignments:

Review selected audit reports, management letters and accounts in order to help
the Embassy in the assessment of their quality, and propose necessary follow-up.

Advise and if called upon, perform on-the-job training of Embassy in the field of
auditing and financial management.
c. Assistance in connection with special audits and investigations, examples of possible
assignments:

Give assistance and advice in case of suspected or real fraud, mismanagement or
corruption related to support administered by the Embassy.

Provide quality assurance on Terms of Reference for special audits.

Conduct special audits in cases of suspected fraud, mismanagement or corruption.
2. Assisting Grant recipients to improve their financial management practices
As mentioned, the company that is awarded the frame contract will be asked by the Embassy
to work with grantees to improve their financial management practices. This will include, but
not be limited to:

Visiting grantees on a regular basis to oversee accounting and offer assistance in
improving accounting practices and systems if needed.

Organise in service training in financial management for accounting staff and
management in selected institutions.
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
Assist in the preparation of manuals and guidelines where such do not exist or are
inadequate for the tasks being performed at the specific institution.

Report to the Embassy on performance and possible needs for additional follow up
to improve grantee administrative capacity.
Capacity and experience
The selected firm needs to have detailed knowledge and experience from public financial
management at central and district levels, accounting regulations and practices in private
sector and Non Governmental Organizations. The incumbent company should have sufficient
staff to undertake several assignments and follow a number of grantee programmes at the
same time. It is also crucial to have diplomatic tact and skills to work with a variety of
partners in a spirit of cooperation and building internal capacity, while at the same time being
alert regarding improper or illicit financial management practices.
Reporting
All reporting will be in writing. Additionally, the company may be requested to produce
reports or other material as part of a larger assignment. Any such reporting obligations will be
described in the ToR for the assignment in question.
Time schedule
It is anticipated that the frame contract will be awarded and signed before 1 July 2009. The
frame contract will provide the legal basis for ordering consultancy services. The individual
assignments will be agreed in exchange of emails between the Embassy and the Consultant on
a case-by-case basis. This includes the tasks to be carried out, the number of hours to be used
and the deadline for delivery.
Duration and budget
The Embassy will enter into a frame contract with duration of up to three years. The contract
will be reviewed every year and the Embassy reserves the right to terminate the frame
contract with three month’s notice if performance is deemed unsatisfactory.
The contract will have an upper limit of NOK 3 million (approx. USD 460,000).
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