Financial Management Training Course for Tanzania Zonal Health Resource Centres and Health

Financial Management Training Course for Tanzania Zonal Health Resource Centres and Health Training Institutions

Facilitator Guide

Acknowledgements

This document was developed by the University of Washington International Training and Education Center for Health (I-TECH), with funding from the President’s Emergency Plan for AIDS Relief (PEPFAR) through the U.S. Department of Health and Human Services, Health Resources and Services Administration (HRSA) Cooperative Agreement No. 6 U91 HA 06801, in collaboration with the U.S. Centers for Disease Control and Prevention’s Global AIDS Program (CDC/GAP) Tanzania. Its contents are solely the responsibility of the authors and do not necessarily represent the views of CDC or HRSA.

Portions of this document were adapted from “Practical Financial Management for NGOs,” a training course developed by Management Accounting for Non Governmental Organisations (Mango).

The Ministry of Health and Social Welfare would like to extend special thanks to the following individuals for their contribution towards the development of the Financial Management Course materials:

Ministry of Health and Social Welfare

Dr. Gozibert Mutahyabarwa, Assistant Director, Continuing Education, MOHSW

Mrs. Agnes Kinemo, Coordinator, Continuing Education, MOHSW

Mr. Walid Mussa, Accountant, MOHSW

Mr. Sospeter Muhizi, Procurement Officer, MOHSW

Mr. Damian Mwamwongi, Health Administrator, PHC Iringa

Mzumbe University

Mr. Paul Nsimbila, Lecturer, Materials Management

Mr. Erasmus Kipesha, Lecturer, Finance and Accounts

International Training and Education Center for Health Tanzania Project Staff

Jann Vhugen, MBA, CPA, MPH, Financial Advisor

Maureen Sarewitz, Training Development Associate

Liz Stevens, MSW, Director CPM

Martin Kalowela, HRHS Program Manager

Monica Macha, Finance Director

Hilda Missano, Training Director

Neema Gabriel, ZHRC Program Coordinator

Yovitha Mrina, Training Design Associate

Stephanie Askins, Training Design Manager

Stephanie Smith, Training Development Specialist

Flavian Magari, MD, Country Director

Alyson Shumays, MPH, Country Program Manager

I-TECH

University of Washington

901 Boren Avenue, Suite 1100

Seattle, Washington 98104 USA

I-TECH Tanzania

P.O. Box 72868

Block 6; Plot 1
Ali Hassan Mwinyi /Kilimani Roads
Next to French Embassy
Kinondoni, Dar es Salaam
TANZANIA

Tel: +255 22 2664171
Mobile: 0787 534 657
Fax: +255 22 2664179

Please seek the permission of I-TECH before reproducing, adapting or excerpting from this report.

Table of Contents

Acknowledgements ...... 3

Table of Contents ...... 5

Course Timetable ...... 7

Course Background and Overview ...... 11

Sessions

Session 0: Introduction to Course...... 13

Session 1: Financial Management Overview...... 21

Session 2: Internal Controls for Cash, Banking and Payments...... 47

Session 3: Budgeting, Accounting and Financial Reporting...... 77

Session 4: Auditing...... 125

Session 5: Development Partner Relations and I-TECH Per Diem Policies...... 153

Session 6: Public Procurement Environment and Legal Framework in Tanzania...... 175

Session 7: Procurement and Tendering Methods...... 209

Session 8: Annual Procurement Plans, Procurement Contracts, and Contract Management.243

Session 9: Stores and Supplies Management...... 285

Session 10: Income Generating Activities (IGAs) and Resource Mobilisation...... 285

Appendices

Appendix I: Financial Self-Assessment Tool...... 333

Resources and References...... 339

Time Table for Financial Management Training Course

Day 1

Time / Topic / Resp. Person
8:00-8:30 / -Registration
-Welcome Remarks
8:30-9:00 / Pre-Test / Participants
9:00-10:00 / Session 0: Introduction to Course (Introductions, Expectations, Course Background, Goals and Agenda)
10:00-10:30 / Tea Break
10:30-13:00 / Session 1: Financial Management Overview
13:00-14:00 / Lunch
14:00-16:15 / Session 2: Internal Controls for Cash, Banking and Payments (Presentation Part 1, Activity 1, Presentation Part 2)
16:15-16:30 / Tea Break
16:30-17:30 / Session 2: Internal Controls for Cash, Banking and Payments (Activity 2)
17:30-17:45 / Daily Evaluation and Closing of Day 1
17:45-18:15 / Facilitators Meeting

Day 2

Time / Topic / Resp. Person
8:00-8:30 / Respond to issues raised in Daily Evaluations
8:30-10:00 / Session 3: Budgeting, Accounting, Financial Reporting (Presentation Part 1, Activity 1)
10:00-10:30 / Tea Break
10:30-12:30 / Session 3: Budgeting, Accounting, Financial Reporting (Presentation Part 2, Activity 2)
12:30-13:30 / Lunch
13:30-15:30 / Session 4: Auditing (Presentation Part 1, Activity 1)
15:30-15:45 / Tea Break
15:45-16:45 / Session 4: Auditing (Presentation Part 2, Activity 2)
16:45-17:00 / Daily Evaluation and Closing of Day 2
17:00-17:30 / Facilitators Meeting

Day 3

Time / Topic / Resp. Person
8:00-8:30 / A-Z Review Activity
8:30-10:30 / Session 5: Development Partner Relations and I-TECH Per Diem Policies
10:30-11:00 / Tea Break
11:00-13:00 / Session 6: Public Procurement Environment and Legal Framework in Tanzania (Presentation Part 1, Activity 1, Presentation Part 2)
13:00-14:00 / Lunch
14:00-16:00 / Session 6: Public Procurement Environment and Legal Framework in Tanzania (Activity 2)
16:00-16:15 / Tea Break
16:15-16:30 / Daily Evaluation and Closing of Day 3
16:30-17:00 / Facilitators Meeting

Day 4

Time / Topic / Resp. Person
8:00-8:30 / Cabbage Ball Review Activity
8:30-10:00 / Session 7: Procurement Methods and Tendering Methods (Presentation Part 1, Activity 1)
10:00-10:30 / Tea Break
10:30-12:30 / Session 7: Procurement Methods and Tendering (Presentation Part 2, Activity 2)
12:30-13:30 / Lunch
13:30-16:00 / Session 8: Annual Procurement Plans
16:00-16:15 / Tea Break
16:15-16:30 / Daily Evaluation and Closing of Day 4
16:30-17:00 / Facilitators Meeting

Day 5

Time / Topic / Resp. Person
8:00-8:30 / Post-It Review Activity
8:30-10:30 / Session 9: Income Generating Activities (IGAs) and Resource Mobilisation (Presentation Part 1, Activity 1)
10:30-11:00 / Tea Break
11:00-13:00 / Session 9: Income Generating Activities (IGAs) and Resource Mobilisation (Presentation Part 2, Activity 2)
13:00-13:30 / Post-test / Participants
13:30-14:30 / Lunch
14:30-15:00 / -Post-test marking by facilitators
-Focus Group Discussion (6-8 participants)
15:00-15:30 / Post-test validation and return
15:30-16:00 / Wrap-up Discussion and Closure
16:00-16:30 / Final Evaluation
16:30-16:45 / Tea Break
(Departure for participants)
16:45-17:15 / Final Facilitators Meeting

I. Course Background and Overview

The International Training & Education Center for Health, in collaboration with MOHSW, conducted a financial assessment of the ZHRCs from September 2008 to February 2009. This assessment examined current financial systems in place at the ZHRCs, with the goal of enabling the ZHRCs to be more financially independent, with the ability to attract development partners and accept grants from in-country and international funders. Included was an assessment of the training needs of the ZHRC financial staff. This workshop was developed and first conducted in March, 2010 to address the training needs identified during the assessment visits and at the subsequent report dissemination meeting which took place in December 2009.

After the first workshop, the course was adapted to more fully address financial management practices in Tanzania. A Technical Working Group, sponsored by I-TECH in collaboration with MOHSW, was convened in Dar es Salaam in September 2010 to revise the content, followed by piloting of the materials at Amabilis Centre – Morogoro in March, 2011 whereby pilot revisions were incorporated to the materials afterwards. In particular, the procurement sessions were re-written to incorporate key material from Tanzania’s Public Procurement Act and new session regarding Stores and Supplies Management was added to the package.

Goal of the Course: To build the capacities of the ZHRCs/HTIs in financial management.

Course Objectives:

By the end of the workshop, participants will be able to:

Better manage funds of ZHRCs/HTIs
Develop stronger internal controls and financial processes in ZHRCs/HTIs which will attract development partner funding and involvement
Develop and expand income generating activities (IGA) in ZHRCs/HTIs
Share best practices and challenges and continue peer education and communication among ZHRCs/HTIs post-workshop

II. Course Organisation

A variety of approaches to teaching and learning will be used during this workshop. It is assumed that the participants are adult learners who will take considerable responsibility for their own learning. The focus will be on active learning and teamwork, and should emphasise the key knowledge and skills needed for conducting assessments.

The course is a trainer-led program and consists of 5 days of highly participatory training activities. The course outline is as follows:

Day 1: Learn an overview of financial management, internal controls for cash, banking and payments, and practice creating a bank statement reconciliation.
Day 2: Learn about budgeting, accounting and financial reporting, study a case about strategic planning, learn about auditing.
Day 3: Learn about development partner relations, per-diem policies, and public procurement & legal framework in Tanzania.
Day 4: Learn and discuss about different procurement and tendering methods, learn about annual procurement plans, and review tools for procurement.
Day 5: Learn about Income Generating Activities (IGAs) and resource mobilisation, plan an IGA, and develop resource mobilisation strategies.

III. Course Evaluation

This course will be evaluated using daily evaluation form, final evaluation form, and a written course evaluation completed by participants daily on course subject matter and presenters. Participant learning will be assessed through a written pre and post-test.

IV. Course Materials

Course materials include a participant manual including, slide sets and handouts for group work. Other resource materials will be made available to participants at the workshop.

Financial Management TrainingFacilitator Guide

Session 0: Course Introduction1

Session 0 Introduction to Course

/ Total Session Time: 50 minutes (30 minutes for lecture/discussion, 20 minutes for group activity)

Course Goal: To build the capacities of the ZHRCs/HTIs in financial management.

Course Objectives: By the end of the workshop, participants will be able to:

Better manage funds of ZHRCs/HTIs
Develop stronger internal controls and financial processes in ZHRCs/HTIs which will attract development partner funding and involvement
Develop and expand income generating activities (IGA) in ZHRCs/HTIs
Share best practices and challenges and continue peer education and communication among ZHRCs/HTIs post-workshop

Session Overview

Step / Time / Activity/
Method / Content / Resources
Needed
1 / 20 minutes / Presentation, Introduction Activity / Introduction to Course, Introductions to Each Other (Slides 1-2) / LCD or Overhead Projector
Ball/rolled paper
2 / 05 minutes / Presentation, Brainstorm / Ground Rules/Norms, Parking Lot, Housekeeping (Slides 3-5) / LCD or Overhead Projector
3 / 20 minutes / Presentation / Course Background & Rationale, Course Goal & Objectives, Targeted Participants, Outline, Materials, Assessment (Slides 6-14) / LCD or Overhead Projector
4 / 05 minutes / Presentation / Key Points to Remember (Slide 15) / LCD or Overhead Projector
/ Resources Needed
• Flip Chart, paper, and markers
• LCD or Overhead Projector
• Slides
• Ball/rolled paper

Beginning the Session

/ Trainer Instructions: Step 1 (20 minutes)

Present Slides 1-2 using trainer notes and a ball/rolled paper to guide the presentation.

Slide 1 / / WELCOME participants to the training.
Remember that during the first day both participants and facilitators are strangers to one another and that it is important to establish a friendly, welcoming, and safe learning environment.
INTRODUCE course to participants.
Slide 2 / / CHOOSE an introduction activity and
CONDUCT it so that all participants are able to introduce themselves and answer the questions listed on the slide.
REMEMBER that movement and activities enhance adult learning.
RECORD participants’ expectations on a flip chart or blackboard. If participants have expectations that will not be met by the course, discuss these with the group.
PLACE the flip chart sheet with the participants’ expectations within sight and refer to it throughout the course.
/ Trainer Instructions: Step 2 (05 minutes)

Present Slides 3-5 using the trainer notes to guide the presentation and brainstorm activity.

Slide 3 / / Instructions for Activity
EXPLAIN to participants that ‘ground rules’ are expectations of both the participants and the trainers on what they should do to help the training go smoothly and meet the course objectives.
TELL participants that the ground rules will be used throughout the training and new rules can be added to the training as needed.
BRAINSTORM ground rules with participants. Record the responses on a flip chart or blackboard and post where everyone can see.
Possible ground rules:

USE BOTH ENGLISH AND KISWAHILI
Arrive on time for the beginning of each session and after each break (both trainers and participants).
Keep each session on time.
Switch off mobile phones while in the training room.
See each others as equals in the training room. Any past hierarchies and politics are to be left at the door.
Share experience and expertise. Many participants have previous experience and background in training.
Feel free to ask questions at any time.
Only one person should speak at a time (this especially important when interpretation is being done).
Provide everyone the opportunity to contribute to ensure that the quieter voices are heard. Everyone has something important to contribute and it is important that we have the opportunity to hear from everyone.
No side-bar conversations. Comments should be made to the whole group.
Provide constructive feedback to each other.
No smoking in the training room.
Agree on when to use Swahili vs. English.
Respect each other’s opinions and contributions.

Slide 4 / / INTRODUCE the idea of a ‘Parking Lot’ after the ground rules have been established and posted.
EXPLAIN to participants that the parking lot is a way of acknowledging and recording discussions, themes, or ideas that might take too much time to fully explore, or are related to, but not critical for, the discussion. These topics are usually important to the participant.
POST a piece of flip chart paper at the front of the room. Tell participants that this is the parking lot and that this is where the group will put interesting topics or questions that are taking up too much time or are related to but not critical to the discussion. The topics are written on paper and sit in the ‘parking lot’ until time is available to discuss them at the end of the training or during breaks.
EXPLAIN to participants that every training should start with similar elements to this training, including: introductions, learning objectives, course overview, ground rules/norms and a parking lot.
Slide 5 / / REVIEW the location of toilets and rooms for meals.
EXPLAIN when and how per diem will be paid.
/ Trainer Instructions: Step 3 (20 minutes)

Present Slides 6-14 using the trainer notes to guide the presentation.

Slide 6 /
Slide 7 / / EXPLAIN to participants that after the first workshop, the course was adapted to more fully address financial management practices in Tanzania. A Technical Working Group, sponsored by I-TECH in collaboration with MOHSW, was convened in Dar es Salaam in September 2010 to revise the content, followed by piloting the materials at Amabilis Centre Morogoro in March, 2011 whereby pilot revisions were incorporated to the materials afterwards. In particular, the procurement sessions were re-written to incorporate key material from Tanzania’s Public Procurement Act. Also a new session regarding Stores and Supplies Management was added to the package.
Slide 8 /
Slide 9 /
Slide 10 /
Slide 11 / / REVIEW the course outline with participants.
EXPLAIN to participants that this is a participatory course that lasts 5 days. Participants will extensively practise various skills during this course.
Slide 12 / / REFER the participants to the training schedule in their Participant Handbook for greater detail on the daily schedule.
Slide 13 / / REVIEW the course materials with participants.
EXPLAIN to participants that the Participant Handbook contains copies of all of the PowerPoints and handouts that are necessary for this training.
REVIEW the sections of the Participant Handbook, which serves as the primary textbook for this course. This handbook was developed to enhance learning and participation in the course.
Slide 14 / / REVIEW the various types of course assessments that will be used during this course. This includes:
Oral Feedback —The lead trainer will review the day’s activities and conduct an oral feedback process for assessing what participants liked the most, the least, and collect suggestions for modifying the course.
Written Evaluation—In addition, a written evaluation will be conducted (refer to the evaluation form among the course materials). Review the evaluation form, and explain that they will be provided with time at the end of each day to complete the evaluation form. It is often easier to complete the form while the sessions and presenters are fresh in your mind rather than waiting until the course is complete.
Pre/post test – will be conducted at the beginning and end of course on the knowledge-based topics presented during the course.
/ Trainer Instructions: Step 4 (5 minutes)

Present Slide 15 using the trainer notes to guide the presentation.

Slide 15 / / REMIND participants that they already know a lot and that this training is designed to integrate their knowledge and experience.

Financial Management TrainingFacilitator Guide

Session 0: Introduction to Course1