Individual National Expert оn Internal Control and Audit in the Public Sector

TERMS OF REFERENCE

FOR INDIVIDUAL CONSULTANT

https://jobs.undp.org/cj_view_job.cfm?cur_job_id=104483

1. BACKGROUND

The ongoing conflict in eastern Ukraine has had a direct and highly negative impact on social cohesion, resilience, livelihoods, community security, and the rule of law. Recognizing the need to urgently address reconstruction, economic recovery and peacebuilding needs in areas affected both directly and indirectly by the conflict, in late 2014 the Government of Ukraine requested technical assistance and financial support from the international community to assess priority recovery needs. In late 2014, the United Nations (UN), the World Bank (WB) and the European Union (EU) conducted a Recovery and Peacebuilding Assessment, which was endorsed by the Cabinet of Ministers in mid-2015.

The United Nations Development Programme (UNDP) has been active and present in eastern Ukraine for the past decade, before the conflict, with a focus on community development, civil society development, and environmental protection. Work on addressing the specific conflict-related development challenges discussed above built on this earlier engagement, established partnerships, and started in 2015 through the Recovery and Peacebuilding Programme (RPP). The RPP is a multi-donor funded framework programme formulated and led by the UNDP in collaboration with the Government of Ukraine and in cooperation with a number of partnering UN agencies (UN Women, FAO, UNFPA).

The RPP was designed to respond to, and mitigate, the causes and effects of the conflict. It is based on findings of the Recovery and Peacebuilding Assessment (RPA) and is aligned to the State Target Programme for Recovery as well as to the two oblast development strategies up to 2020. It takes into account the opportunities that have arisen from the Minsk Protocol of September 2014 and the renewal of its cease-fire provisions (the latest cease-fire having been agreed in March 2018) and is also fully adjusted to the humanitarian-development nexus. It is an integral component of the UNDP Country Programme and is therefore fully aligned with the United Nations Partnership Framework (UNPF). It is closely interlinked with the Democratic Governance and Reform Programme, operating nationally and in all of Ukraine’s regions, and is consistent with the SDGs, in particular SDG 16 (Peace, Justice and Strong institutions).

The Programme’s interventions are grouped under the following key Programme components, which reflect the region’s priority needs:

Component 1: Economic Recovery and Restoration of Critical Infrastructure

Component 2: Local Governance and Decentralisation Reform

Component 3: Community Security and Social Cohesion.

The Programme is pooling funds employing a multi-sectoral programme-based approach and is implementing using an area-based methodology and unifying interventions framework for 12 projects funded by 13 international partners.

In October 2018, four UN agencies (UNDP, UN Women, FAO and the UNFPA) had countersigned a new joint project document, funded by the EU. The overall objective of the project is to restore effective governance and promote reconciliation in the crisis-affected communities of Donetsk and Luhansk oblasts of Ukraine, thereby enhancing the credibility and legitimacy of local governments in the government-controlled areas (GCAs) of the oblasts. It will contribute to peacebuilding and prevent further escalation of conflict in Ukraine through effective and accountable decentralisation, gender-responsive recovery planning and equal access to services, as well as enhanced community security and social cohesion.

This endeavour will be achieved through the pursuit of the following specific goals:

1. To enhance local capacity for gender-responsive decentralisation and administrative reforms to improve governance, local development and the delivery of services.
2. To stimulate employment and economic growth by assisting in Micro-, Small- and Medium Enterprise (MSME) development through demand-driven business development services and professional skills training.
3. To enhance social cohesion and reconciliation through the promotion of civic initiatives.
4. To support sector reforms and structural adjustments in health, education and critical public infrastructure to mitigate the direct impacts of the conflict.

Objectives contributing to the achievement of the above-mentioned goals  include, in particular, the creation of a modern and effective system of internal audit in local authorities of the territorial community, as an effective tool of financial management, which focuses on:

- improving the internal control system of local authorities;

- preventing the facts of illegal, inefficient, and ineffective use of budgetary funds and their losses;

- studying the causes of systemic violations and shortcomings and identifying risk areas in the activities of local authorities, as well as developing measures for their prevention.

Internal audit is a basic component of the national and European model of public internal financial control, which has not yet been fully introduced in Ukraine at the local level. Effective work of internal auditors and their impartial and objective recommendations and consultations will contribute to:

- increasing the level of accountability of local authorities of the territorial communities and the transparency of their activities;

- increasing revenues to the local budgets of the territorial communities and searching for budgetary reserves;

- improving the efficiency of mechanisms for the administration of taxes and fees;

- preventing cases of illegal and irrational spending and inefficient management of community property in compliance with the principle of gender equality.

To address the above-mentioned issues, the Programme seeks to engage a qualified Individual National Expert on Internal Control and Audit in the Public Sector (hereinafter – the Expert) to assess the current level of internal audit in the pilot communities (Lyman Territorial Community and Sievierodonetsk Territorial Community) and develop an action plan for the establishment and operation of internal audit structures, as well as an internal audit model at the territorial community level.

2. MAIN OBJECTIVES OF THE ASSIGNMENT

The Expert should achieve the following objectives:

• investigate, analyze, and inform the pilot territorial communities about the requirements of national and international legislation on the organization and implementation of internal audit in local authorities as a tool to ensure the legitimacy and increase the efficiency of their activities;
• establish a dialogue with the local authorities of pilot communities in the development of internal audit activities;
• assess the level of existing internal audit systems in the pilot territorial communities based on the analysis of the current situation and draw appropriate conclusions, taking into account the requirements of the legislation;
• develop an Action Plan for the establishment (or improvement) and operation of internal audit structures in the pilot territorial communities based on the conclusions on the current situation;
• prepare drafts of local administrative documents on internal audit, taking into account the approved Action Plan for each pilot community;
• prepare general recommendations on the model of internal audit at the community level, taking into account the experience gained in the implementation of internal audit activities in the pilot territorial communities;
• share the experience in organizing internal audit at the level of territorial communities among communities of Donetsk and Luhansk oblasts.

3. SCOPE OF WORK

Within the framework of these Terms of Reference (ToR), the following actions are required:

Objective 1. Developing and coordinating with the UN RPP the work plan, which includes a set of indicators reflecting outputs and sequence of key activities as well as methods for achieving goals.

Objective 2. Studying the national and international legislation on internal audit and the best international practices in organizing and exercising internal control at the local level, including their advantages and/or limitations for the possible implementation in Ukraine.

Objective 3. Performing a situational analysis of the internal audit organization and implementation status in the pilot territorial communities.

3.1. Facilitating the creation of target working groups at the level of each pilot community to coordinate and support the implementation of the objectives.

3.2. Assessing the level of compliance of the existing internal audit system with legal requirements.

3.3. Take into account that the minimum number of visits to the pilot communities to analyze the internal control status, conducting focus groups, and processing the results will include 4 (four) offline events (2 (two) events in each community).

Expert will not incur any expenses related to arrangement and conducting of such offline events.

Objective 4. Analysing field and desk research in 2 (two) pilot communities and developing a general analytical report with recommendations in the form of an Action Plan for the establishment (or improvement) and operation of internal audit structures in each pilot territorial community (hereinafter – the Analytical Report); the document should be prepared in Ukrainian (in .docx format and ready to print .pdf versions, at least  20 (twenty) A4 pages,12 Arial fonts, single line spacing), which must be approved by UN RPP and submitted to the pilot communities in a format convenient for partners.

Objective 5. Developing general recommendations on the model of internal audit in the territorial communities, drafts of regulatory documents on internal audit in the pilot communities, and presentation materials.

5.1. Preparing General Recommendations on the model of internal audit at the territorial community level, taking into account the problems that were identified during the analysis of possible options for their solution. The Expert should prepare recommendations in Ukrainian in digital form (.docx format, at least 20 (twenty) A4 pages in 12 Arial fonts with annexes), agree the document with the UN RPP specialist and submit it to UN RPP as a MS Word file.

5.2. Developing regulatory documents in close cooperation with the working groups, which will govern the internal audit activities at the community level and are pre-defined by the Action Plans for the establishment (or improvement) and operation of internal audit structures (2 priority administrative documents for each community).

5.3. Preparing a multimedia presentation of the Internal Audit Model. The Expert should prepare the product, agree it with the UN RPP specialist, and submit to UN RPP in PowerPoint format, in Ukrainian (up to 20 slides).

5.4. The above materials should be discussed at the meetings of the target working groups at the level of each pilot community (2 (two) online events (1 (one) event in each community)), approved by the UN RPP, and submitted to the pilot communities in a format convenient for partners.

Objective 6. Preparing and conducting 2 (two) presentation workshops on the organization and implementation of internal audit for the territorial communities: two (2) online events (one (1) for Donetsk Oblast and one (1) for Luhansk Oblast, at least thirty (30) people from each Oblast). The dates, agenda, and lists of participants of workshops should be coordinated with the UN RPP.

Objective 7. Providing a final report to the UN RPP with an analysis of the lessons learnt and recommendations based on the outcomes achieved. The Expert should prepare a report, agree it with the UN RPP, and submit it to the UN RPP as a MS Word file in Ukrainian.

GENERAL RECOMMENDATIONS:

• The Expert is responsible for ensuring the reference to the UN Recovery and Peacebuilding Programme and the European Union to be included in all products created under the contract. The UN RPP will provide minimum visibility requirements within this contract. All materials/reports/presentations shall be prepared in Ukrainian.
• During the implementation of objectives, the Consultant shall strictly comply with the COVID-19 requirements provided by the Ministry of Health.
• The Contractor will also ensure the mainstreaming of gender equality and women’s empowerment considerations in the field of expertise, promote a safe and enabling environment free of any kind of discrimination and abusive behavior, and use the principles of gender-responsive communications in line with the UNDP corporate standards.

4. EXPECTED PROJECT DELIVERABLES

5. PAYMENT SCHEDULE

UNDP will pay the negotiated amount in 3 (three) tranches:  

• After achieving the result of Output 1 and submission of the Initial Report – 20%.
• After achieving the result of Output 2 and submission of the Interim Report – 50%.
• After complete achievement of all the results and submission of the Final Report – 30%.

6. MONITORING/REPORTING REQUIREMENTS

The Consultant will work under the overall guidance of the Programme Coordinator and direct supervision of the UN RPP Fiscal Decentralization Specialist. The Consultant will report weekly to the UN RPP Fiscal Decentralization Specialist.

Moreover, the Consultant shall provide one initial report, one interim report, and one final report according to the schedule set out in these Terms of Reference. The interim report will include the work progress, as well as issues to be addressed. The final report will include achievements, lessons learned and recommendations for further actions.

All materials/analyses/studies of the UN RPP are submitted electronically (formats of * .docx, * .xlsx, * .pptx, * .pdf) on electronic source or in the form of electronic communication. The materials/studies/reports shall be written in Ukrainian.

The payments will be effected upon the full completion and acceptance of the contract’s obligations followed by the Programme Coordinator’s signing the acceptance certificate.

7. REQUIRED SKILLS AND EXPERIENCE

1. At least Master’s / Specialist degree in financial science or economics, or another relevant field.
2. At least 5 (five) years proven experience in consulting and providing expert support on internal control and audit in the public sector.
3. Proven experience in preparing methodological materials/manuals on finance and audit supervision in budgetary institutions (at least 3 (three) samples).
4. Fluency in Ukrainian.
5. At least 3 (three) years of work experience in state administration bodies or state institutions is an asset.

Competencies of the Expert

Ethics and values:

• Demonstrating and promoting the highest standards of integrity, impartiality, fairness, and incorruptibility in all matters affecting his/her work and status.

Organizational awareness:

• Ability to lead the development, implementation supervision, monitoring, and evaluation of development projects.
• Ability to lead strategic planning, change processes, RBM, and reporting.
• Developing and empowering people, coaching, and mentoring.
• Self-development, initiative-taking.

Working in teams:

• Acting as a team player and facilitating the teamwork.

Communicating information and ideas:

• Facilitating and encouraging open and effective communication within a team.
• Delivering verbal/written information in a timely, clear, organized, and easy-to-understand manner.
• Informing and transparent decision making.
• Accepting responsibility for the quality of the outcome of his/her decisions.

Corporate competencies:

• Demonstrating integrity by modelling the UN’s values and ethical standards.
• Treating all people fairly.

8. DOCUMENTS TO BE INCLUDED WHEN SUBMITTING PROPOSALS

The applicants shall submit the following documents: 

9. FINANCIAL PROPOSAL

☒ Lump-sum contract

The financial proposal shall specify a total lump sum amount and payment terms around specific and measurable (qualitative and quantitative) deliverables (i.e. whether payments fall in instalments or upon completion of the entire contract). The payments are based upon outputs, i.e. upon delivery of services specified in the TOR. To facilitate the Commission’s work when comparing financial proposals, it will include a breakdown of this lump sum amount.

The Consultant will be responsible for all personal administrative expenses associated with undertaking this assignment, including costs for organizing and conducting events, printing, stationery, telephone and electronic communications, as well as report copying. 

☒ Travel costs

All envisaged travel costs shall be included in the financial proposal. This will include all travels to join duty station/repatriation. In general, UNDP shall not accept travel costs exceeding those of an economy class ticket. If the Consultant wishes to travel higher class, he/she may do so at his/her own expense. In cases of unforeseeable travel, the payment of travel costs including tickets and accommodation shall be agreed between the relevant department and Expert before travel.

10. EVALUATION OF APPLICANTS

• Educational background in financial science or economics, or another relevant field – 19 points max.

{Master’s / Specialist Degree – 14 points, PhD Candidate – 16 points, Doctor of Science – 19 points}

• Proven experience in consulting and providing expert support on internal control and audit in the public sector – 18 points max.

{5 years – 14 points, 6-9 years – 16 points, more than 10 years – 18 points}

• Proven experience in preparing methodological materials/manuals on finance and audit supervision in budgetary institutions (at least 3 (three) samples) – 18 points max.

{3 samples – 14 points, 4-6 samples – 16 points, 7 and more samples – 18 points}

• Fluency in Ukrainian – 7 points.
• Proven 3 (three) years of work experience in state administration bodies or state institutions – 8 points.

Maximum available technical score – 70 points.

11. EVALUATION METHOD

Cumulative analysis

Contract award shall be made to the incumbent whose offer has been evaluated and determined as:

1. a) responsive/compliant/acceptable, and
2. b) having received the cumulative highest score out of a pre-determined set of weighted technical and financial criteria specific to the solicitation.

* Technical Criteria weight: 70%

* Financial Criteria weight: 30%

Only candidates meeting the minimum requirements and obtaining a minimum 70% from the maximum available technical score (49 points) would be considered for the Financial Evaluation.

The maximum number of points assigned to the financial proposal is allocated to the lowest price proposal and will equal to 30. All other price proposals will be evaluated and assigned points, as per below formula:

30 points [max points available for financial part] x [lowest of all evaluated offered prices among responsive offers] / [evaluated price].

The proposal obtaining the overall cumulatively highest score after adding the score of the technical proposal and the financial proposal will be considered as the most compliant offer and will be awarded a contract.