Careers
Consultancy (Kenya)
Development of an integrated financial accountability toolkit that will focus on integrated annual financial reports analysis with special focus on gold, green energy transitional minerals and rare earth minerals.
About Global Financial Integrity
GFI is a Washington, DC-based think tank, producing high-caliber analyses of illicit financial flows, advising developing country governments on effective policy solutions, and promoting pragmatic transparency measures in the international financial system as a means to global development and security. GFI aims to address the harms inflicted by trade misinvoicing, transnational crime, tax evasion and kleptocracy. By working with partners to increase transparency in the global financial system and promote Trade Integrity, GFI seeks to create a safer and more equitable world. GFI has been a leader in the policy debate surrounding illicit financial flows, and in particular, trade-related illicit financial flows. Our work is routinely cited at the highest levels: by international institutions such as the United Nations, the OECD and the African Development Bank. GFI is committed to constructively engaging with policymakers worldwide to develop effective, pragmatic policy solutions to address illicit financial flows. We take pride in basing our analysis on the highest quality research and expertise.
Background and Introduction
The mining industry, encompassing both large-scale industrial mining operations and artisanal and small-scale mining (ASM), is a significant contributor to global GDP and employment. The extraction and trade of minerals, particularly gold, green energy transitional minerals, and rare earth minerals, play a crucial role in driving economic growth and development. However, it is also associated with various social, environmental, and economic risks, including environmental degradation, human rights abuses, and revenue mismanagement.
Gold, green energy transitional minerals (such as lithium, cobalt, and nickel), and rare earth minerals are of particular interest due to their critical role in various industries, including electronics, renewable energy technologies, and electric vehicles. The increasing demand for these minerals, driven by technological advancements and the global transition towards a low-carbon economy, has led to a surge in mining activities in Africa.
Despite their importance, the extraction and trade of these minerals are often characterized by opacity, complex supply chains, and a lack of transparency in financial reporting. This opacity creates opportunities for illicit financial flows, tax evasion, and unethical practices, undermining the potential benefits of mining for host countries and local communities. there are significant challenges related to financial accountability and transparency within the mining industry. Illicit financial flows, tax evasion, and corruption often plague this sector, hindering its ability to contribute effectively to sustainable development goals.
To address these challenges and promote greater accountability, transparency, and sustainability in the mining industry, there is a pressing need for an integrated financial accountability toolkit. This toolkit will serve as a comprehensive resource for stakeholders involved in the analysis of integrated annual financial reports (IAFRs) of mining companies, with a specific focus on gold, green energy transitional minerals, and rare earth minerals.
About the Project
Global Financial Integrity is implementing a project titled ‘’Improving revenue collection and reducing IFF risks from gold, green energy transition, and rare earth minerals under the Finland Grant which seeks to improve corporate and financial transparency in the mining sector. The specific objectives of the project are;
Improved corporate and financial transparency in the mining sector (i.e. creation of beneficial ownership laws/ regulations/ registries).
Increased revenue collection and supply chain integrity from the mining sector.
Regional advocacy to ensure improved domestic resource mobilization and reduce illicit financial flows
International advocacy to ensure improved domestic resource mobilization and reduce illicit financial flows
The Integrated Financial Accountability Toolkit aims to empower stakeholders with the knowledge and tools needed to promote responsible mining practices, mitigate financial risks, and maximize the positive impacts of mining on economic development and sustainable growth.
Objectives;
Guidance on Financial Analysis: The toolkit will provide guidance on how to analyze integrated annual financial reports (IAFRs) of mining companies, including key financial indicators, revenue recognition practices, and accounting treatments specific to the mining industry.
Sector-Specific Insights: Specialized modules will focus on the unique characteristics and challenges of gold, green energy transitional minerals, and rare earth minerals, providing stakeholders with in-depth insights into the financial dynamics and risks associated with each sector.
Risk Assessment Framework: The toolkit will include a risk assessment framework to identify and evaluate key financial risks, including those related to tax evasion, transfer pricing, corruption, and regulatory compliance.
Best Practices and Case Studies: Case studies and best practices from leading mining companies will be included to illustrate effective strategies for promoting financial accountability, transparency, and sustainability in the mining sector.
Stakeholder Engagement Tools: Guidance on stakeholder engagement strategies will be provided to facilitate dialogue and collaboration between mining companies, governments, civil society organizations, and local communities.
Scope of Work;
The toolkit will identify possible illicit financial flows (IFFs), analysing the financial statements of mining companies published across jurisdictions. As such, a careful reading of the balance sheet, the income statement, the cash flow statement, and the statement of changes in equity will provide key information in identifying red flags as how the company conduct its business and report on its activities. The comparative analysis across jurisdictions will identify the impact of double tax agreements in reducing their tax burden in certain countries, especially in presence of complex corporate arrangements with the use of subsidiaries, trusts, and joint ventures. Comparison with industry standards may also assist in shedding light to the analysis.
In developing the toolkit, special analysis will be given to the following elements:
Check for Consistency and Accuracy, to identify trends and patterns, and highlight possible anomalies- Identification of trends and patterns on balance sheets, income statements and cash flow statements.
Examine revenue recognition policies and practices, which can lead to reduced tax liabilities when revenues are underreported.
Analyze costs of operations, which can be increased to reduce taxable base.
Compare costs of goods sold with international spot and futures prices.
Evaluate operational, financial and investment cash flow statements against company assets.
Analyze the sources and terms of financing and determine its impact on its financial reporting and tax liabilities.
Scrutinize related party transactions and the respect of the arm-length principle.
Compare the information compiled with tax disclosures to identify divergences.
Inception Report: Provide a comprehensive overview of the project objectives, including the development of an integrated financial toolkit for analyzing the financial performance, governance practices, and sustainability efforts of mining companies. Inception report detailing the research methodology, data collection tools, a list of key informants and work plan.
Research and Analysis: Conduct a thorough review of existing financial analysis frameworks, tools, and best practices relevant to the mining industry. Analyze regulatory requirements, reporting standards, and industry guidelines related to financial reporting and accountability in the mining sector. Identify key financial indicators, metrics, and methodologies for assessing the financial performance and sustainability of mining companies, with a focus on gold, green energy transitional minerals, and rare earth minerals. Interim report presenting preliminary findings and analysis. Draft research report encompassing the research findings, analysis, conclusions, and recommendations.
Toolkit Development: Develop a structured framework for analyzing Integrated Annual Financial Reports (IAFRs) of mining companies, including guidance on financial statement analysis, revenue recognition practices, and accounting treatments specific to the mining industry. Design specialized modules and templates for the mining sector (gold, green energy transitional minerals, and rare earth minerals), incorporating sector-specific insights, key performance indicators, and risk assessment tools. Incorporate best practices, case studies, and examples of financial analysis from leading mining companies to illustrate effective strategies for promoting financial accountability, transparency, and sustainability.
Risk Assessment and Mitigation: Develop a risk assessment framework to identify and evaluate key financial risks associated with mining operations, including tax evasion, transfer pricing, corruption, regulatory compliance, and environmental liabilities. Provide guidance on risk mitigation strategies and internal controls to address identified risks and strengthen financial governance within mining companies.
Documentation and Reporting: Document the development process, methodologies, and findings of the project in a comprehensive report. Prepare user manuals, toolkits, and other educational materials for stakeholders to facilitate the adoption and implementation of the integrated financial toolkit. Provide ongoing support and guidance to stakeholders through the dissemination of updates, resources, and technical assistance.
Final research report incorporating feedback from stakeholders and experts.
Presentation of findings during the validation and the launch of the toolkit.
A comprehensive report of the assignment.
The study is expected to be conducted over a period of 6 months (40 Working days), commencing on 10th May, 2024.
Profile of the Consultant(s)
The consultant must possess the following qualifications:
Master’s in Political science, Public Administration, Law or any other related field;
Advanced knowledge and experience in financial analysis, including proficiency in analyzing financial statements, identifying key financial indicators, and assessing financial performance.
Familiarity with accounting principles, financial reporting standards, and industry-specific regulations relevant to the mining sector;
Strong project management skills, including the ability to plan, organize, and execute complex projects within established timelines and budgets.
Experience leading multidisciplinary teams, coordinating resources, and managing stakeholder expectations throughout the project lifecycle.
Proficiency in financial reporting and accounting practices specific to the mining industry, including revenue recognition, asset valuation, depreciation methods, and impairment testing.
Knowledge of international financial reporting standards (IFRS) and other relevant accounting frameworks applicable to extractive industries.
Demonstrated experience in conducting research, particularly in the African context;
Proficiency in qualitative and quantitative research methods;
Relevant experience of at least 10 years;
Ability to work independently within strict timeframes;
High level of professional integrity and;
Good communication skills.
The Consultant(s) is required to submit a technical and financial proposal as part of their application.
- The technical proposal should include a summary of the applicant’s qualifications, experience and a detailed methodology, outlining how they will approach and complete the quantitative and qualitative aspects of the assignment within the timeframe outlined. The technical proposal should also contain CVs of key team members and professional references.
- The financial proposal should indicate the all-inclusive fixed total contract price and be supported by a breakdown of costs by activities i.e. a detailed budget outlining all anticipated costs, including those to borne by the Client as part of the proposal.
- The proposal should be sent to careers@gfintegrity.org cc dkabia@gfintegrity.org before 29th April 2024, 5PM EAT.
- The application subject line should clearly indicate “Development of an integrated financial accountability toolkit that will focus on integrated annual financial reports analysis with special focus on gold, green energy transitional minerals and rare earth minerals.”
- Any clarification should be emailed to enyabicha@gfintegrity.org before 25th April 2024 by 5PM EAT
N/B: The call is open to competent individual consultants and firms, firms will be required to share profiles of the team, comply with all statutory obligations in Kenya and submit proof thereof.
No phone calls please.
No internships are available yet.
This year, Global Financial Integrity, Academics Stand Against Poverty and Yale’s Global Justice Program will be awarding the eleventh annual Amartya Sen Prizes to the two best original essays examining one particular component of illicit financial flows, the resulting harms, and possible avenues of reform. Essays should be about 7,000 to 9,000 words long. There is a first prize of USD 5,000 and a second prize of USD 3,000. Winning essays must be available for publication in Journal Academics Stand Against Poverty. Past winners are not eligible.
Illicit financial flows are explicitly recognized as an obstacle to achieving the Sustainable Development Goals and singled out as target #4 of SDG 16. They are defined as cross-border movements of funds that are illegally earned, transferred, or used – such as funds earned through illegal trafficking in persons, drugs or weapons; funds illegally transferred through mispriced exchanges (e.g., among affiliates of a multinational firm seeking to shift profits to reduce taxes); goods misinvoiced or funds moved in order to evade taxes; and funds used for corruption of or by public or corporate officials.
Components of illicit financial flows can be delimited by sector or geographically. Delimitation by sector might focus your essay on some specific activity, business or industry – such as art, real estate, health care, technology, entertainment, shipping, weapons, agriculture, sports, gaming, education, politics, tourism, natural resource extraction, banking and financial services – or on an even narrower subsector such as the diamond trade, hunting, insurance, or prostitution. Delimitation by geography might further narrow the essay’s focus to some region, country, or province.
Your essay should describe the problematic activity and evaluate the adverse effects that make it problematic. You should estimate, in quantitative terms if possible, the magnitude of the relevant outflows as well as the damage they do to affected institutions and populations. This might include harm from abuse, exploitation and impoverishment of individuals, harm through subdued economic activity and reduced prosperity, and/or harm through diminished tax revenues that depress public spending.
Your essay should also explain the persistence of the harmful activity in terms of relevant incentives and enabling conditions and, based on your explanation, propose plausible ways to curtail the problem. Such reform efforts might be proposed at diverse levels, including supranational rules and regimes, national rules, corporate policies, professional ethics, individual initiatives, or any combination thereof. The task is to identify who has the responsibility, the capacity and (potentially) the knowledge and motivation to change behavior toward effective curtailment. Special consideration will be given to papers that provide a detailed description of how change may come about in a particular geographical or sectoral context.
We welcome authors from diverse academic disciplines and from outside the academy. Please send your entry by email attachment on or before 31 August 2024 to Tom Cardamone at SenPrize@gfintegrity.org.
While your message should identify you, your essay should be stripped of self-identifying references, formatted for blind review.