Undertaking Fiduciary Risk Assessment in Somaliland, Puntland and South Central for the transfer and Management Funds for the JPLG

The JPLG works to ensure transparent, accountable and efficient local service delivery, by working at the following different enabling levels : Improving the legislative and regulatory framework for decentralized service delivery in all three zones of Somalia; Improving the capacity of existing and upcoming district councils; Providing funding for service delivery through districts councils; and Developing the capacity of communities to generate the demand side governance at the local level. The JPLG plans to cover all areas of service delivery which have been assigned to the districts councils from basic social services to conflict resolution and land dispute settlement. Special emphasis has been placed on ensuring the rights of women and addressing gender issues in the JPLG2.6 Decentralization in Somalia is a response to the wide spread rejection of the centralized system of Somalia’s last central governments of 1961 – 1969 and 1969 -1991. Since the early nineties the establishment of local governance structures has proceeded at different paces and depth across the country. Today’s vision of local governance is the establishment in all Somalia of effective local governance systems and the support to existing systems that are participatory, that facilitate the delivery of good quality, reliable, affordable and sustainable services to Somali people - and that locally elected bodies at the district level are accountable and transparent to the people. In June 2011 DFID informed the JPLG that new funds for JPLG from DFID would not be able to be spent on the LDF until a fiduciary risk assessment was undertaken. Subsequent agreements were made with DFID that in addition, the DFID funds available to UNCDF in 2011/2012 could only be spent on conducting such an assessment, that the DFID funds to UNDP were not to be spent on direct transfers to ministries, that the risk assessment would commence in 2011 once the new DFID funds arrived and that this fiduciary risk assessment must cover the following elements: The transfer of district based basket funds from UNDP in 2009 and 2010 and then LDF funds from UNCDF from 2011 onwards to the respective District located Dahabshiil accounts The transfer of funds from UNDP to respective ministries’ Dahabshiil accounts in south central Somalia, Somaliland and Puntland The transfer of central government funds in Somaliland and Puntland, using the central bank system to JPLG target districts. Therefore these terms of reference have been prepared to contract a company which can undertake this fiduciary risk assessment.

Duties and Responsibilities

National Consultant (one for each zone PL,SL and SC) The Consultant will also hold meetings with respective UN Agencies to hear their concerns or areas to pay more attention to, and with officials of the District and National level institutions, to understand how cooperation with the UN Agencies is managed, and any issues of concern they may have. Upon completion of the draft report, the Consultant should first hold a debriefing meeting with the District and National level institutions to discuss findings and recommendations for future improvements, as well as to seek their feedback thereon. The Consultant will then meet with the Agencies to discuss the draft report prior to its finalization. Through interviews and review of progress reports prepared by the District and National level institutions, establish whether activities were implemented as planned, and where activities (timeliness, type, quantity) deviated significantly from the original AWP(s), establish why. Review the systems of monitoring progress and review of reports, including field monitoring visit reports and progress reports, to assess whether the District and National level institutions met its responsibilities for monitoring as described in the AWPs. Review whether recommendations recorded in field/project monitoring reports or minutes of meetings between the District and National level institutions and the Agency(ies) have been implemented. Identify gaps in the ability to design household surveys. Justification as well as data collection instruments such as questionnaires, focus groups sessions, key informants and participant observation etc. Identify weaknesses and capacity gaps in terms of staff qualifications; human resources base and financial skills levels, including recommendations on required skills mix and trainings for staff development; Specific tasks that will facilitate an overall review of the District and National level institution’s capacities in financial management Access to the Institutions’ Documentation: The consultant should have full and complete access at any time to all records and documents (including books of account, legal agreements, minutes of committee meetings, bank records, invoices and contracts etc.) and all employees of the District and National level institutions. The consultant should be advised that he/she has a right of access to banks and depositories, consultants, contractors and other persons or firms engaged by the programme/project management. If the consultant is not given unrestricted access to any records, person or location during the course of the assessment, this restriction should be clearly defined, with reasons, in the report. Upon commissioning, the consultant will be briefed by UNCDF who will also supervise the assignment on a daily basis. The mission team will be expected to study the listed documents. The consultant will hold consultations with relevant stakeholders and officials at national and district levels cutting across the four stakeholder groups of public officials, development partners and the private sector and Civil Society. The consultant will present the draft Project document to an internal UNCDF meeting for quality assurance. A validation meeting will be held with a wider constituency of stakeholders to consider the proposed interventions. Participants will include representative from the central ministries, agencies and Local Government officials, Civil Society, NGOs and the Development Partners. Outputs 1. Inception report – within the first 10 days of the assignment which includes how the consutlant’s will address the TOR and their detailed workplan and schedule. 2. A draft technical Fiduciary Report on the key institutions involved in the management and implementation of the public financial system especially those with specified roles in the management of the LDF. The report should cover their system of accounting, reporting, auditing, and internal controls, and concludes with a statement of the overall risk related to cash transfers; the risk rating can be low, moderate, significant or high. The report must include: a. Executive Summary – one page b. Brief on the situation of the Public Financial Management system in Somalia c. A summary of the LDF process and Management – d. Selected institutions for the assessment and the rational e. Details of the Risk assessment process f. Result for each institutions g. Recommendations and h. Conclusion. Time Frame and Work Load Period: From 15 November2011. Estimated work load: 50 working days for each of the three consultants. Mission days (estimate, including travel): Puntland 10 days, Somaliland 10 days, South-Central 3 days, Nairobi 5 days. The bidding consultants can propose alternative mission arrangements. Interested and qualified companies should forward their CVs indicating references and requested daily fees (in US$). All further enquiries should be directed to: Anka Kitunzi Kodjo Mensah-Abrampa Chief Technical Adviser Snr. Regional Technical Adviser UNCDF, Somalia UNCDF, Southern &Eastern Africa Nairobi Johannesburg Anka.kitunzi@uncdf.org Kodjo.mensah-abrampa@uncdf.org Details Terms of Reference can be found at: http://www.uncdf.org/english/uploads/ToR_Somalia_Fudiciary_Assesment_international.pdf Vacancy announcement for International consultants (2) is posted separately.

Competencies

Understanding of the sector development approach to building inclusive financial sectors/systems Sound knowledge and awareness of issues related to gender and social inclusion. Thorough understanding of key elements of results-based programme management. Demonstrated capacity for strategic thinking. Excellent analytical and writing skills. Strong task management and for Team Leader, team leading competencies. Country/regional experience relative to the programme to be evaluated an advantage.

Required Skills and Experience

National Consultant (one for each zone PL,SL and SC) Education: A minimum of Bachelor’s Degree in Financial Management, Economics, Social Science, Business/ Public Administration or any subject of relevance. Experience: 2 years of proven experience in Research and Consultancy in the areas of Financial Management, Project Development and Management, Local Economic Development and any other relevant areas Be familiar with the workings with Partner Institutions in Joint Programmes and Results-Based Management Framework. Ability to appreciate and understand the operation of public institutions in fragile countries Be very conversant with the operations of the Regions and District Councils in Somalia. Knowledge of the decentralisation process in Somalia, and familiarity with the JPLG and Financing Decentralized in Somalia would be an asset. Language Requirements: Fluent in English and Somali language (Knowledge of Somali would be an asset).

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.

Undertaking Fiduciary Risk Assessment in Somaliland, Puntland and South Central for the transfer and Management Funds for the JPLG