TERMS OF REFERENCE (TOR)
A. Project Title : Conducting a Review of the Assessments of a Country’s Public Financial Management (PFM) System
B. Project Description
Consistent with the ongoing and continuing UN Reform, the United Nations System in the Philippines is prepared to comply with the mandate of the UN Development Group to simplify and harmonize the systems and procedures for transferring cash to its programme implementation partners in the country.
The same is demanded by donors consistent with the harmonization principle of the Paris Declaration for Aid Effectiveness.
The key messages behind the harmonization and simplification of cash transfer are, as follows :
3. Decreases complexity of procedures; and
4. Reduces transaction costs for governments.
The four modes of cash transfers which may apply under various UN programmes in the country are as follows :
3. Reimbursement to national partners for incurred expenditures; and
4. Direct Agency Implementation in support of activities agreed in the Annual Work Plan.
The first activity under the effort to harmonize the procedure for cash transfer is the conduct of a macro-assessment of the country’s public financial management.
The UN is therefore in need of an expert who will conduct this study, with the intention of achieving the following :
The review establishes the capacity of the Supreme Audit Institution (SAI) or locally known as the Commission on Audit (COA) to undertake audits of cash transfers provided to low risk Implementing Partners.
For NGO partners, the macro assessment should be able to evaluate the existing NGO certification process, including UN agencies’ internal accreditation processes, on whether or not this can be utilized to assess risk related to implementation of UN programmes.
The study will also look into existing tools of government or NGO that could provide information for a risk assessment.
The study does not intend to provide pass or fail to implementing partners, nor provide a risk rating to Implementing Partners, but rather to provide a background info for micro-
assessments, and to determine whether or not the National SAI can conduct audits of implementing partners.
C. Scope of Work
The assessment is based primarily on work on PFM conducted by development partners. Examples of such reports include :
Assessments by the World Bank
It evaluates how effectively the PFM system achieves the desirable budget outcomes of aggregate fiscal discipline, strategic allocation of resources, and efficient service delivery.
based assessment of the PFM system and a common basis for identifying priority areas for improvements.
The review covers : areas of the national budget development and execution process, the functioning of the public sector accounting and internal control mechanisms, audit and oversight, and financial recording systems and staff qualifications.
Part of the study would be an evaluation of the capacity of COA, DBM, DOF, and existing NGO certification process to make a credible risk assessment of partners.
New tools of government should be evaluated.
The assessment begins with the collection of existing PFM reviews and will also consider the Agencies’ own experience and knowledge of the PFM.
The assessment reviews the existing documentation and Agencies’ experience to address the issues raised in the checklist in this annex.
A draft report should be prepared, and then shared and validated with government officials and the institutions who provided the materials used in the review.
D. Expected Outputs and Deliverabl
Target Due Dates
Review and Approvals Required (Indicate designation of person who will review output and confirm acceptance)
1 week after contract signing
HACT Working Group (HWG) and Head of Agencies (HOAs)
2 weeks after submission of inception report
2 weeks after presentation to UNCT
HWG and UNCT
1. Inception Report detailed proposal with methodology and timetable
2. Draft and final reports of about four pages (excluding annexes) and conclude with a completed table of the risk areas.
The report should include :
3. A briefing on the results of the assessment
E. Institutional Arrangement
a) Specific authorities who will directly supervise the Contractor, and to whom he / she will be directly responsible to, reporting to, seeking approval / acceptance of output from :
For project supervision HACT Working Group
For reporting / seeking approval of output HACT HOAs
b) This contract is output-based (please refer to chart on deliverables); draft and final reports will be presented during the regular UNCT Meeting, if required
c) The Contractor is expected to liaise / interact / collaborate / meet with the following agencies in the course of performing the work
1. Commission on Audit (COA)
2. Department of Budget and Management (DBM)
3. Department of Finance (DOF),
4. Philippine Council for NGO Certification, as appropriate
d) The project will not provide any facilities, support personnel, support service, or logistical support to the consultant
F. Duration of the Work
The consultant will be expected to remain engaged for a period of four to eight weeks, depending on the volume and availability of data.
G. Duty Station
As this is a desk review , duty station is not applicable. Since this consultancy is output-based, contractor will not be required to report regularly.
Required Skills and Experience
Qualifications of the Successful Individual Contractor
a) The area of specialization / field of expertise of consultant : Economics or Finance
PhD in the same fields of specialization will be an advantage. In lieu of a Master’s Degree, at least 8 years minimum experience
c) The minimum number of years of work experience on the preferred field of practice : Eight years work experience in Economics, Public Finance or related fields
d) Special skills / experience and other qualifications
I. Scope of Price Proposal and Schedule of Payments
Schedule of Payments :
20% - upon satisfactory acceptance of the inception report
60% - upon satisfactory presentation and acceptance of 1st draft
20% - upon satisfactory acceptance of final report
J. Recommended Presentation of Offer
The following documents are required from the consultant :
c) Brief description of why the individual considers him / herself as the most suitable for the assignment, and a methodology, if applicable, on how they will approach and complete the assignment.
A methodology is recommended for intellectual services, but may be omitted for support services.
d) Financial Proposal that indicates the all-inclusive fixed total contract price, supported by a breakdown of costs, as per template provided.
If an Offeror is employed by an organization / company / institution, and he / she expects his / her employer to charge a management fee in the process of releasing him / her to UNDP under Reimbursable Loan Agreement (RLA), the Offeror must indicate at this point, and ensure that all such costs are duly incorporated in the financial proposal submitted to UNDP.
K. Criteria for Selection of the Best Offer
Combined Scoring method where the qualifications and methodology will be weighted a max. of
70%, and combined with the price offer which will be weighted a max of 30%
L. Annexes to the TOR
Annex 1. Macro Assessment Checklist
Annex 2. Risk consideration checklist
Annex 3. Letter of Confirmation of Interest and Availability and Financial Proposal
Annex 4. P11 Personal History Form
Please email applications to procurement.ph undp.org by 15 June 2018. Please make sure emails do not exceed 4MB.
UNDP is committed to achieving workforce diversity in terms of gender, nationality and culture. Individuals from minority groups, indigenous groups and persons with disabilities are equally encouraged to apply.
All applications will be treated with the strictest confidence.