Background

Public Finance for Development (PFD) programme has been established in 2009 by the Ministry of Finance of the Slovak Republic and UNDP with the aim to assist the partner countries in their efforts to reform public finance and set up the effective public finance management (PFM). Programme is based on Slovak and other international expertise and experiences gained during the major reforms and follow up PFM developments and UNDP presence and deep knowledge of countries.

The project is implemented by the UNDP North Macedonia with the support of IRH-based Project Team and the Donor (Slovak Ministry of Finance). The Republic of North Macedonia became beneficiary of the Programme in 2019. The aim of the intervention in North Macedonia is to provide technical assistance to the Ministry of Finance (MF) and other institutions in improving overall financial management and ensuring good governance in managing public resources.

The project Support to Public Finance Management Reform in the Republic of North Macedonia in  international taxation, local taxes and fight against tax evasion and informal economy is aligned with the measures and activities of the Draft Public Finance Management Reform Programme “Smart Finance” of North Macedonia 2022-2025 and the long-term vision and efforts of the Ministry of Finance of the North Macedonia to maintain stable fiscal stance over the long run while keeping on delivering better services to the citizens and private sector. In addition, the project activities are also directly and indirectly linked with the Government priorities set in the latest Economic Reform Program 2022-2024.

The main goal of the project is to support the Ministry of Finance of North Macedonia, the Public Revenue Office and the State Audit Office in strengthening the transparent and accountable public finance management on both, central and local level. The project focuses on improving the administrative capacities of the Ministry of Finance, the Public Revenue Office and the State Audit Office to develop effective business processes in information exchange for tax purposes and tax collection, and to improve the quality of services to taxpayers; to reinforce the capacities of the Ministry in the administration and information exchange and to improve the overall administration of taxes on central and local level institutions.

The intervention is aimed at supporting the State Audit Office (SAO) and the Ministry of Finance of North Macedonia (MoF) in the implementation of the Public Finance Management (PFM) Reform Programme aimed at strengthening the public finance system by promoting transparency, accountability, fiscal discipline and efficiency in the management and use of public resources, and improved delivery of service and economic development, with special emphasis on accrual financial statements.

Duties and Responsibilities

Under the assignment the International Consultant in coordination with the National Consultant is expected to support the State Audit Office and the Ministry of Finance of North Macedonia in strengthening their capacities to audit full range of accrual financial statements as well as transition to producing financial information on accrual basis. In that regard, the International Consultant supported by the National Consultant is expected to develop an analysis to support the introduction of the accrual accounting, conduct analyses for improving the methodological tolls as well as to develop a training programme for the state auditors in auditing accrual financial statements. Through this assignment, support will be provided to the MoF and the SAO to implement the provisions of the new Law on Performing Accounting Activities.

The International Consultant should fulfill the following tasks:

1.Develop a training programme and conduct training materials for auditing of accrual financial statements

The International Consultant supported by a National Consultant should develop a three-day training programme, prepare materials and literature, and conduct the training for auditing of the accrual financial statements. The focus of the training programme should be to strengthen the capacities of the SAO to audit the full range of accrual financial statements, with particular focus on the public enterprises and joint stock companies owned by the state and municipalities.

The Consultants in cooperation with the SAO shall produce a brief needs assessment, based on which through co-creation with the SAO will develop the training programme. The International Consultant along with the National Consultant and shall prepare the agenda for the trainings in accordance with the training programme. The trainings are planned to be delivered during the first week of June.

2.Prepare initial analysis to support the  introduction of the accrual accounting in the Republic of North Macedonia

The International Consultant supported by the National Consultant shall prepare an Analysis to support the introduction of the accrual accounting in the Republic of North Macedonia evaluating the current situation in the country in the of accrual accounting, proposing recommendations for introducing accrual accounting in the country with focus on public enterprises and joint stock companies owned by the state and municipalities. The Analysis should point out the critical steps during the process of implementation with examples and practices from other countries that have implemented such accounting. The Analysis will be developed in close cooperation with SAO and MoF.  The Analysis should include recommendations for legal changes of the national legislation in order to be complied with the IFRS requirements.

3.Prepare analyses for improving the methodological tolls for accrual financial statements audit

The International Consultant in cooperation with the National Consultant shall conduct analysis for improving the methodological tolls and software’s for preparation of audits on accrual financial statements. Supported by the SAO, the International Consultant shall conduct analyses and provide the recommendations for improvements of the methodological tools to be used by the SAO for conducting audit on accrual financial statements. Additionally, the International Consultant shall provide the recommendation for improvement of the software for conducting audit on accrual financial reports.

EXPECTED OUTPUTS AND DELIVERABLES:

The consultancy is expected to deliver the following outputs:

Payment schedule

The payment will be done on lump-sum basis, upon successful completion of deliverables in three instalments:

• First payment after successful submission of deliverable 1;
• Final Payment after successful submission of deliverable 2 and 3;
• Reimbursement of travel and allowance expenses for one 5-day mission in Ohrid and one 3-day mission to Skopje subject to travel restrictions enacted by the Government of North Macedonia in relation to the COVID–19 pandemic (Air ticket and DSA)

Institutional arrangment

The consultant will work under direct supervision by the Project Manager and in a team of two consultants. He/she will be in regular communication with the supervisor through e-mail and will provide regular progress reports on monthly basis. All communication and reports will need to be prepared in English language. All training materials will be property of UNDP.

In course of performing his/her job, the consultant will need to work with the State Audit office. The UNDP office will assist with scheduling the meetings.

Duration of the ASSINGMENT

The duration of the Consultant’ is estimated 40 working days in the period May 2022 to December 2022.

IV.Duty station and travel

The assignment will be home-based with one 5-day (overnight) mission to Ohrid, and one 3-day mission to Skopje, North Macedonia. All expenses related to travel of the consultant to Ohrid (air ticket and DSA) should be included in her/his offer.

Competencies

• Strong interpersonal skills, communication and diplomatic skills, teamwork ability;
• Ability to work under pressure and stressful situations;
• Strong analytical, reporting and writing abilities;
• Good time management, meeting deadlines.

Required Skills and Experience

Academic Qualifications/Education: A MA degree in Economics, Public Finance Management, Corporate Finance, or related discipline is required. A PhD is a strong asset.

Experience:

• At least 8 years of professional experience in auditing accrual financial statements;

• Proven experience in capacity building (trainings, workshops, mentoring) in auditing finance statements (at least two similar assignments);
• Previous experience in applying auditing of accrual finance statements in Republic of Slovakia is a strong asset;
• Possessing a license for certified accountant or auditor is a strong asset;

Language skills:

• Excellent language proficiency in both written and oral English.

CRITERIA FOR SELECTION OF BEST OFFEr

The award of the contract shall be made to the offeror whose offer has been evaluated and determined as:

1. Being responsive/compliant/acceptable, and
2. Having received the highest score based on the following weight of technical and financial criteria for solicitation as per the schedule below:

* Technical criteria weight: 70%

* Financial criteria weight: 30%

Only candidates obtaining a minimum of 49 points (70%) in the technical evaluation shall be considered for the financial evaluation.

For the considered offers in the financial evaluation only, the lowest price offer will receive 30 points. The other offers will receive points in relation to the lowest offer, based on the following formula: (Pn / Pl) * 30 where Pn is the financial offer being evaluated and Pl is the lowest financial offer received.

Technical Criteria:

DOCUMENTS TO BE SUBMITTED

Interested offerors are invited submit the following documents/information to be considered:

1. Offeror’s letter, as per the following form LINK
2. Most updated CV with focus on required qualification as well as the contact details of at least three (3) professional references;
3. Financial Proposal The financial proposal must be expressed in the form of a lumpsum all-inclusive cost, supported by breakdown of costs as per template provided in USD for this consultancy.

The financial proposal must take into account various expenses that will be incurred during the contract, including: the daily professional fee; cost of travel out of duty station (if required); communications, any other expenses related to this assignment.