Financial Management Training Course Fortanzania Zonal Health Resource Centres and Health

Financial Management Training Course forTanzania Zonal Health Resource Centres and Health Training Institutions

Participant Handbook

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, Hospital 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, Washington98104USA

I-TECH Tanzania

P.O. Box 72868

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

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

© 2010 University of Washington.

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...... 19

Session 2: Internal Controls for Cash, Banking and Payments...... 41

Session 3: Budgeting, Accounting and Financial Reporting...... 65

Session 4: Auditing...... 107

Session 5: Development Partner Relations and I-TECH Per Diem Policies...... 131

Session 6: Public Procurement Environment and Legal Framework in Tanzania...... 149

Session 7: Procurement and Tendering Methods...... 175

Session 8: Annual Procurement Plans, Procurement Contracts, and Contract Management.201

Session 9: Stores and Supplies Management...... 237

Session 10: Income Generating Activities (IGAs) and Resource Mobilisation...... 237

Appendices

Appendix I: Financial Self-Assessment Tool...... 279

Resources and References...... 285

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 (PresentationPart 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
Session 9: Stores and Supplies Management
8:30-10:30 / Session 10:Income Generating Activities (IGAs) and Resource Mobilisation (Presentation Part 1, Activity 1)
10:30-11:00 / Tea Break
11:00-13:00 / Session 10: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 adaptedto 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. Also a 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 Store Management, 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 writtenpre 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 TrainingParticipant Handbook

Session 0: Course Introduction1

Session 0Introduction to Course

/ Total Session Time:50 minutes

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

Slides

Slide 1 /
Slide 2 /
Slide 3 /
Slide 4 / / Theparking 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.
The parking lot 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.
Slide 5 /
Slide 6 /
Slide 7 / / 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, 20011 whereby pilot revisions were incorporated to the materials afterwards.
• In particular, the procurement sessions were re-written to incorporate key material form Tanzania’s Public Procurement Act.

Slide 8 /
Slide 9 /
Slide 10 /
Slide 11 / / This is a participatory course that lasts 5 days. Participants will extensively practise various skills during this course.
Slide 12 /
Slide 13 / / Participant Handbook contains copies of all of the PowerPoints and handouts that are necessary for this training.
This serves as the primary textbook for this course.This handbook was developed to enhance learning and participation in the course.
Slide 14 / / 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). This 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.
Slide 15 /

Financial Management TrainingParticipant Handbook

Session 0: Course Introduction1