ToR - STTA Budget and Planning Preparation Manuals for LGs
Detailed Job description / requirements:
USAID Public Financial Management (PFM)
Terms of Reference for Short-Term Technical Consultant
Developing Budget and Planning Preparation Manuals for LGs and Supporting Citizen Engagement in Budgeting based on the Manuals
TYPE OF EMPLOYMENT
Short-Term Technical Assistance (STTA)
NO. OF POSITION
LEVEL OF EFFORT
90 days inclusive of travel
BASE OF OPERATIONS
Kathmandu with travel to Madhesh and Lumbini Provinces
Deloitte Consulting and WSP, together with Georgia State University and the Niti Foundation are implementing a five-year USAID funded Public Financial Management Program (USAID PFM) whose purpose is to provide technical assistance and strengthen Public Financial Management (PFM) functions, performance, and accountability of targeted agencies at the federal, provincial, and local levels of government, and to provide targeted assistance to the Government of Nepal (GON) aimed at strengthening national PFM institutions and systems to sustainably advance PFM.
The project commenced in October 2022 and will run for a five-year period to October 2027. The major stakeholders of the project are selected Federal Agencies including Ministry of Finance (MOF), Ministry of Federal Affairs and General Administration (MOFAGA), Financial Comptroller General’s Office (FCGO), PEFA Secretariat, National Natural Resources and Fiscal Commission (NNRFC), National Planning Commission (NPC), Office of the Prime Minister and Council of Minsters (OPMCM), Public Procurement Monitoring Office (PPMO), Provincial Governments of Madhesh and Lumbini Province, and Local Governments located in these two provinces.
The objectives of the Project are to provide technical assistance and strengthen PFM functions, performance, and transparency and accountability of targeted agencies at the federal, provincial, and local levels of government, and to provide targeted assistance to the GON aimed at strengthening national PFM institutions and systems to sustainably advance PFM. The Project’s two objectives and key activities are:
In general, the expected outcomes of the Project are to enhance transparency and accountability by accomplishing:
- Selected PFM related laws or policies or regulations or standards or norms or guidelines or tools or manuals developed.
- Selected local governments have increased their own resource revenue.
- Elected and Government officials trained on public financial management system.
- Selected PFM institutions, governments and agencies adopted improved public financial management system.
- Selected local governments have improved gender-responsive budgeting.
- Coordination mechanisms for coordination are established.
- Standardized training modules in the PFM disciplines are developed.
The purpose of this assignment is to engage a short-term consultant to work with the concerned Government of Nepal (GON) Counterparts and the USAID PFM to develop Budget and Planning Preparation Manuals and Supporting citizen engagement in budgeting based on the Manuals for the Local Governments (LGs). This is to help to strengthen the budget and planning process and citizen engagement therein to establish robust and sequential linkages between strategic and periodic plans, MTEF, and annual budget and programs with purposeful citizen engagement.
(Please note that the ToR is subject to change slightly per the Government Counterpart’s requirements which will be informed to the applicants prior to selection)
All Local Governments must prepare and implement their annual plan and budget within its jurisdiction for local development in addition to periodic, mid-term expenditure framework and sectoral strategies. The main basis for local level planning and budgeting are the Nepal Constitution, Local Government Operation Act, 2074, National Natural Resource and Fiscal Commission Act, 2074, Inter-governmental Fiscal Management Act, 2074, Policy, acts and standards issued by Federal and Provincial Governments, Federal and Provincial Periodic Plans, Federal and Provincial Economic Policy, and international commitment and convention. A number of budget relevant provisions have been articulated in these legal frameworks.
Additionally, many circulations and guidelines have been issued by pertinent entities in respect of planning and budget formulation to the LGs. Most importantly, two manuals already exist for this purpose. However, these documents only cover the required activities and tasks to be carried out in respect of planning and budget formulation as specified in the legal frameworks. A manual is urgently needed for elected and government officials of the LG which would present the methodical, self-explanatory and stepwise actions and functions required for planning and budget formulation. Moreover, the manual should explain methods, processes, and tools required to perform those actions and functions. The manual should cover the prerequisite documents and information and all the aspects of planning and budget formulation and be based on prevailing legal frameworks and international best practices. In view of this, the development of a more comprehensive manual is a priority for most of LGs.
Citizen engagement in the budget/planning process and fiscal policies of any local government is an effective tool for transparency. Moreover, access of citizens and relevant actors to the timely and useful information of the local government ensures the transparency in its financial management functions which will lead to enhancing fiscal discipline and to reducing fiduciary risks. Hence, developing a methodical and explanatory planning and budget preparation manuals that has provision on how to engage with citizens on budget would be helpful in improving PFM functions of the LGs with respect to service delivery to public and optimum utilization of limited resources. Citizen engagement can include formal steps like open public hearings, citizens’ councils among others or informal engagement through civil society organizations, business groups, academics, policy groups
The methodology to be undertaken for this assignment shall be as follows:
- Consultation meetings with concerned officials of federal MoF, federal and provincial planning commissions, NNRFC, MOFAGA, FCGO, selected District Treasury Comptroller Offices (DTCOs), Provincial Ministry of Finance, Provincial Treasury Comptroller Offices (PTCOs), selected LGs, Inter-Local Government PFM Coordination Committees (ILGPFMCCs) and others.
- Collection of relevant data, information, and views from concerned agencies through primary sources such as questionnaires, interviews and secondary sources i.e., published documents through appropriate sources. The consultant should prepare the minutes of meeting / interview and include the photographs of consultation meetings.
- Triangulate the collected data, information, views, feedback with the consultation meetings and published materials collected from the concerned sources as well as validation workshops with concerned officials or representatives of federal, provincial and local governments, professional institutions, and development partners.
This work assignment is to develop Budget and Planning Preparation Manuals for LGs that includes detailed provisions to support citizen engagement in the budget process. The assignment has the following scope of work and tasks that must be carried out to achieve the said objective:
- Review and understand the executive rights and duties of LGs related to public finance including planning, budgeting, resource mobilization and allocation, public expenditure, public debt.
- Consider the three outcomes of public finance, i.e., efficient allocation of resources, distribution of income, and macroeconomic stability.
- Review and understand the existing legal provisions regarding strategic and periodic planning formulation, annual plan/program, and budget (revenue and expenditure) preparation, MTEF development.
- Consider project bank guidelines and project selection/prioritization procedures.
- Review the prevailing circulations and instructions issued by MoF, MoFAGA, NPC, NNRFC to the LGs.
- Review and analyze the provisions and practice of citizen engagement in planning and budgeting process.
- Review and analyze the current practices of planning and budgeting process adopting by the LGs.
- Determine methodical, explanatory, and step-wise procedures required for annual program and budget preparation considering the following elements:
- Formal Budget Calendars
- Top-down Budgeting and/or Bottom-up Techniques
- Budget Policy/Strategy Setting: Resource Estimation, Expenditure Ceiling, Program Prioritization, Budget Guidelines
- Linkage of Annual Plan and Budget with Strategic/Periodic Plan, MTEF, and Project Banks
- Citizen Engagement in Planning and Budget Formulation
- Contents of Planning and Budgeting Documents
- Budget Review, Negotiations and Reconciliation
- Budget Submission and Approval
- Have intensive consultations and discussions on determined procedures with the officials of selected LGs.
- Conduct consultative meetings and discussions with the officials of relevant federal and provincial government entities, civil society, and professional entities.
- Prepare a draft manual for comments and suggestions from the concerned Government Counterpart and USAID PFM.
- Manage and conduct workshops in order to validate, qualify, and finalize the developed manual.
- Develop and submit the concluding Budget and Planning Preparation Manual in the form of Final Report incorporating the comments from the concerned Government Counterparts and USAID PFM Project and/or as stated in the deliverables; and
- Support in rolling out the developed manuals focusing citizen engagement by managing 2 training programs, 1 in each province.
- Submit an Inception Report with detailed work plan in English language within 10 days of the agreement.
- Submit the First Draft Report in Nepali within 50 days of the agreement.
- Conduct Validation workshops / meetings within 10 days after the submission of the First Draft Report, utilizing presentations and/or other methods to facilitate discussion. Nepali materials shall be used to facilitate clear discussions.
- Submit the Final Report in Nepali within 75 days of the agreement incorporating the comments / suggestions received from the workshops/meetings.
- Conduct 2 training programs (1 in each province) within 15 days of the submission of the Final Report.
- Summary Consultant's Work Completion Report describing actions taken to fulfill the above deliverables and provide observations/recommendations for any additional next steps in the process of rolling out of the Guidelines/manuals in English.
All deliverables shall be submitted in editable Microsoft documents, in electronic format. The final report shall also be provided in at least two hard copies and PDF format.
7. Period of Performance:
The duration of this assignment will be 90 days. The anticipated start date will be on or about the second week of June 2023, and the completion date will be September 15, 2023.
8. Technical Directions/Supervision:
- The Consultant will work under the direction and supervision of the Objective 1 Lead (Lead PFM Expert).
- The Project COP and DCOP will also monitor the Consultant’s work as and when required.
- The Consultant shall carry out her/his tasks in close collaboration and coordination with the concerned Government Counterparts and the Project team.
All deliverables required hereunder will be reviewed and approved by the COP/DCOP and Objective 1 Lead (Lead PFM Expert)
9. Required Qualifications and Experience of the Consultant:
The Consultant should at a minimum have the following qualifications:
- Master’ Degree in Business Administration or Public Administration or Management or Economics.
- A minimum of 10 years’ specific experience in the government planning and or related field
- Good communication skills (oral and written) in Nepali and English languages
- Good report writing skills
- Have completed at-least two project study/assessment experience in PFM field
- Proficiency in Microsoft Office software (Word, Excel, PowerPoint, etc.), and
- Ability to work in a multi-cultural environment and exhibit good inter-personal skills.
10. Facilities/Utilities and Logistics to be provided:
The Consultant shall be expected to spend time at the selected government entities, Project Office and from home. As deemed necessary, the Project will provide working space, internet connection, printing and photocopy facilities as required to complete the assignment. The consultant must provide her/his own computer, including Microsoft Office software to produce compatible documents for review.
All the required field visits, consultative meetings and workshops shall be arranged in coordination with the concerned Government, whereas logistics and allowances shall be managed by the Project
11. Contractual Amount and Payment Terms:
This will be a fixed price assignment awarded in Nepali Rupees. Payments shall be made in Nepali Rupees in the following manner.
- 25 percent payment upon submission and acceptance of the inception report, including a detailed work plan for the assignment; (Deliverable 1)
- 35 percent payment upon submission of first draft Guidelines/Manuals which is ready to be presented at validation workshop; (Deliverable 2), and
- 40 percent payment after completion of the validation workshop, submission, and acceptance of final report (Guidelines/Manuals for Audit Irregularities Settlement for Local Governments) and the Consultants’ Work Completion Report (Deliverables 3, 4, 5 and 6).
Travel costs, including the number of trips and length of trips should be estimated. Travel will be arranged and approved in advance by the Project, and actual costs will be reimbursed based on the Project’s standard practices and rates for hotel, per diem, and other billable costs (e.g., meeting costs).
Workshop costs shall be borne directly by the Project. Necessary arrangements for workshop costs (To Be Decided/Determined) if necessary, will be arranged by the project.
12. Application Instructions:
Only individual consultants will be considered for this opportunity.
Interested and qualified individuals should email the following documents to email@example.com with subject line “TOR-OBJ1-2023-06 Developing Budget and Planning Preparation Manuals for LGs and Supporting Citizen Engagement in Budgeting based on the Manuals.”
- Cover letter
- Recent CV
- Dates of availability
- Contact information of three professional reference
- Daily rate. A biodata form may be asked of the successful candidate in order to verify the daily rate, and
- VAT Registration certificate
Application deadline: May 31, 2023
Only shortlisted candidates will be contacted. The organization reserves the right to reject any/all applications without assigning any reason.