Background

The Government of Malawi, in its determination to improve public finance management (PFM) and the economy in general, with the view to ensuring value for money in its service delivery, wishes to introduce Program Based Budgeting (PBB) as a new approach to budgeting over the medium term. By moving towards PBB, the Government hopes to fully achieve its strategic and policy objectives thereby demonstrating to its citizens how tax revenues and donor assistance are being utilized to achieve development results. The budget is a key instrument through which policy goals are realised provided that its preparation, execution and accounting, reporting and oversight follow good practices. The impact of PBB spans across most of those functions and as such it facilitates the achievement of development outcomes and policy objectives.

Currently ministries and departments are required to prepare Output Based Budgets. Prior to this, Government presented its budget based on input classification. Input based budgets are still found in the detailed budget books. The switch to the Output Based Budget is relatively new and presents a positive step towards Program Based Budgeting. It demonstrates that Malawi is ready to improve its budgeting regime in order to effectively achieve its development goals. However, there are weaknesses to the current output based approach with respect to the definition and costing of outputs, M&E, accountability for results, and links between resources and objectives, which the PBB reform aims to address.

Experience from other countries shows that it takes several years to fully plan and implement PBB, given the complexities of the reform and stringent requirements of the operating environment. The Government of Malawi is, therefore, planning a multi-year program to move towards PBB. For the current 2013-2014 Financial Year (1 July to June 30) its plan is twofold (1) to research into the required changes to the operating environment for PBB and (2) to pilot a draft PBB format with 6 Ministries. IMF East Afritac provides ad-hoc support on targeted areas of budget reform, including PBB, through its missions. A mission in March 2013 assessed the readiness for PBB and recommended a review of the enabling environment for PBB and piloting it in several sectors. A  recent September 2013 Mission ran workshops with both the Ministry of Finance (MoF) and Ministry of Economic Planning and Development (MoEPD) (the core team implementing the reform) and 6 institutions selected for the pilot (MoF, MoEPD, Agriculture, Education, Health, National Audit Office).

In parallel to the PBB reform, with support from the United Nations System the Government is implementing the Development Effectiveness and Accountability Programme (DEAP) whose interventions include institutionalizing Results Based Management (RBM) in the public sector. Consistent with international best practices, the RBM approach seeks to incorporate a strategic planning, performance measurement, and budgeting process that emphasizes use of resources to achieve measurable results, accountability, efficiency, and continuous improvement in Government programs. Completing the RBM cycle is a systematic monitoring system which measures the extent to which the anticipated results have been achieved and allows for analytical review of the applicability of the implementation strategy over time. As strengthening the results focus is seen as a critical and necessary part of the migration and successful implementation of PBB, the two reforms are being coordinated to ensure that they reinforce each other.

Duties and Responsibilities

Objective

The objective of the assignment is to assist the central Government institutions to define changes required in the enabling environment for PBB and to assist with piloting PBB in six institutions.

Duties and Responsibilities

The consultancy will support the core team for PBB and RBM from MoF and MoEPD in planning and piloting a multi-year program to move towards PBB approach which embeds RBM principles. 

Among other duties, the consultant will undertake the following tasks:

  • Make recommendations for required changes in the operating environment and budget law to facilitate the development and implementation of PBB system in Government;
  • Support the core team for PBB and RBM to conceptualize guidelines for PBB which embed RBM requirements and assist in the preparation of associated technical manuals;
  • Make recommendations on the PBB budget template to be used in the pilot institutions;
  • Participate in all planning and preparation sessions (bringing case study examples) and provide practical hands-on support to 6 pilot institutions to prepare a program-based budget;
  • Support consultations to institutionalize PBB with senior officials in Government, parliament, and other key stakeholders.
Deliverables:
  • Inception report that outlines the approach to the consultancy;
  • A report on required changes in operating environment, legislation and procedures;
  • Draft guidelines and technical manuals;
  • Interactive and participatory workshops and hands-on support on PBB to staff in 6 pilot institutions;
  • An analytical report outlining the process taken by the 6 pilots analysing the successes, challenges and lessons learnt from the PBB process and recommendations for improvement when rolled-out to other ministries;
  • Final summary report for the core team for PBB taking into consideration the output of the consultancy and the recommendations for future work.
Implementation arrangements

The consultant is expected to be fully self-sufficient in terms of office equipment and supplies, communication, accommodation and transport. The consultant will work with the core team for PBB and RBM comprising officers from MoF Budget division and MoEPD, and the 6 pilot institutions. The consultant will work closely with the expert for RBM. Activities will be aligned with IMF East Afritac support.

Reporting

The consultant will report to Budget Director in MoF and Directors of Planning and M&E in MoEPD. The consultant will collaborate closely with the PFEM focal point in MoF, DEAP project manager in MoEPD, the core team from MoF and MoEPD and the DEAP advisor. The DEAP Programme Management and Coordination Committee will provide further guidance to the consultant. The consultant should provide regular feedback on the progress of the assignment and should ensure strict adherence to timely delivery of the inception and draft and final reports and expected deliverables.

Timeframe

The assignment is for a maximum of 60 full-time working days from the date the contract is signed. The assignment is expected to be carried out between mid-January 2014 to April 2014.

Competencies

Corporate competencies
  • Demonstrates integrity by modeling the UN’s values and ethical standards;
  • Promotes the vision, mission, and strategic goals of UNDP;
  • Displays cultural, gender, religion, race, nationality and age sensitivity and adaptability;
Functional competencies
  • Knowledge Management and Learning;
  • Actively works towards continuing personal learning and development in one or more Practice Areas, acts on learning plan and applies newly acquired skills;
  • Development and Operational Effectiveness;
  • Ability to implement new systems and affect staff behavioral/ attitudinal change;
  • Ability to apply development theory to the specific country context to identify creative, practical approaches to overcome challenging situations;
  • Strong IT skills, web-based management systems;
  • Builds strong relationships with implementing partners, focuses on impact and result for the implementing partners and responds positively to feedback;
  • Consistently approaches work with energy and a positive, constructive attitude;
  • Demonstrates good oral and written communication skills;
  • Demonstrates openness to change and ability to manage complexities;
  • Remains calm, in control and good humored even under pressure;
  • Excellent negotiation, managerial and analytical skills;
  • Ability to work under stress and pressure.

Required Skills and Experience

Education:
  • At least a Master’s degree in Economics, Development Studies, Public Administration, Political Science, Law or any other related social science discipline.
Experience:
  • At least seven years experience in public financial management in low, middle-income or transition countries;
  • Demonstrated experience in designing and implementing PBB in Government and knowledge of RBM principles.

Language:

  • Fluent spoken and written English.
Application procedure:

Interested individual consultants must submit the following documents/information to demonstrate their qualifications:
  • Personal CV including past experience in similar projects and 3 references;
  • Technical Proposal presenting methodology of work and approach;
  • Financial proposal expressed as a Lump sum for 60 working days ( inclusive of DSA, Ticket and other cost if applicable).
Evaluation criteria:
  • The award of the contract shall be made to the consultant who has received the highest score out of pre-determined technical and financial criteria specific to the solicitation;
  • Technical criteria weight – 70 %;
  • Financial criteria weight – 30 %;
  • Only candidates obtaining a minimum of 70 points and above would be considered for the financial evaluation.
Criteria:
  • Technical – Weight 70%; 10 Points;
  • Educational background – Weight 10%; 10 Points;
  • At least seven years experience in public financial management in low, middle income or transition countries – Weight 30%; 20 Points;
  • Demonstrated experience in designing and implementing PBB in Government and knowledge of RBM principles – 30%; 30 Points;
  • Financial – Weight 30%; 30 Points.
Please note that the online system will only allow you to upload one document, therefore the technical and financial proposal are to be attached to the CV and uploaded together at once.