Financial and procurement management is crucial for any organization. It ensures transparency,
accountability, and efficiency in resource utilization. Acknowledging the need for improvement,
MID-P, through DRC DANIDA civil society engagement programming supporting the sustainability of
equitable and strategic Partners, engaged a consultant to review and update its Finance and
Procurement Manual. The consultancy aligned existing policies with the current best practices,
regulatory requirements, and emerging financial and procurement trends, ultimately enhancing
internal controls and governance.

The last review of the Manual was done in 2017; it was outdated and requires updates to reflect
the latest compliance requirements and operational efficiency strategies. Key areas such as indirect
cost recovery (ICR), procurement of goods and services, and financial reporting have not been
adequately addressed. This created operational challenges, including inefficiencies in procurement
processes, risks of non-compliance with donor regulations, and limited clear guidance on emerging
financial management aspects. Additionally, staff members encountered difficulties in navigating
procurement procedures, leading to inconsistencies and inefficiencies in supplier selection,
contract management, and cost optimization. The absence of standardized guidelines also made it
difficult to ensure accountability and transparency of financial transactions.

The updated Finance and Procurement Manual now incorporates critical areas such as Indirect
Cost Recovery (ICR), procurement of goods and services, financial reporting standards, contract
and supplier management, internal control mechanisms, and digitization and automation. These
updates ensure that administrative costs are effectively managed and recovered, procurement
processes are streamlined to enhance compliance, cost-effectiveness, getting value for money and
financial reporting aligns with donor expectations and regulatory requirements.

The revised manual introduces clear guidelines on supplier vetting, contract negotiations, and
performance monitoring, enhancing efficiency in procurement operations. Strengthened internal
control mechanisms help mitigate risks associated with fraud, misallocation of funds, and
inefficiencies in budget utilization. The adoption of financial management software further reduces
manual errors, improves accuracy, and increases efficiency in financial transactions. These
improvements have led to more efficient service delivery, enhanced compliance with donor and
government regulations, and better financial decision-making processes. The recent review of the
finance and procurement manual has significantly boosted the finance team’s confidence in
managing financial and procurement processes, thanks to the structured and clear operational
guidelines. This improvement contributed to successful resource mobilization, with the finance
team scoring 76% in the Mercy Corps due diligence assessment, an achievement that led to the
onboarding of MID-P as a Local Implementing Partner under the RANGE project.

“The updated manual has captured trending and emerging aspects such as Indirect Cost Recovery
(ICR) and the procurement of goods and services. These updates have strengthened our financial
and procurement operations, making them more efficient and compliant with best practices. With
these improvements, we now have clearer guidelines that streamline our processes and minimize
financial risks,” stated Abdirizack Golicha, Finance and Administration Officer.

With the updated Finance and Procurement Manual in place, MID-P is now better equipped to
manage its financial resources effectively. Moving forward, several initiatives will be undertaken
to maximize the benefits of this update. Internal staff training sessions will be held to ensure all
personnel understand and follow the new guidelines. To keep the manual relevant, annual reviews
will be performed to include emerging trends, donor requirements, and regulatory changes. Plans
are also underway to implement digital financial management systems, which will enhance
efficiency, accuracy, and accountability in financial operations. This milestone marks a step
toward improving financial accountability and operational efficiency. “By strengthening financial
and procurement policies, the organization is ensuring sustainability, improved service delivery,
and a foundation for future growth and development,” shared Salad Godana, Finance and
Administration Manager.