Background

The consultancy is planned within the Local Integrated Development (LID) Project (2016 – 2018) and the the Economic Governance for Growth (EGG) Project (2018-2021). LID is primarily funded by the European Union and co-funded and implemented by United Nations Development Programme (UNDP) in Bosnia and Herzegovina (BiH). As part of the UNDP BiH’s Rural and Regional Development Sector’s portfolio, the LID Project has an overall objective to raise the standards of living and improve social cohesion in BiH through inclusive sustainable socio-economic development. LID interventions are streamlined along two main pillars: governance, and economic development and job creation. LID works with 21 selected local governments, grouped together in 4 geographic clusters in the areas primarily affected by floods and areas with a large percentage of returnees/internally displaced persons. The main beneficiaries of the project are local governments, 30 MSMEs and 300 rural households, 50 civil society organizations and grass-root citizens’ groups in target communities, 5,000 members of socially excluded and vulnerable groups, and 3 relevant higher government level institutions. The main partners are the BiH Ministry for Human Rights and Refugees and the two entity governments. EGG project is primarily funded by the Government of the Kingdom of Norway and co-funded and implemented by United Nations Development Programme (UNDP) in Bosnia and Herzegovina (BiH). As part of the UNDP BiH’s Rural and Regional Development Sector’s portfolio, the EGG Project has an overall objective to improve economic development in BiH and create employment opportunities in prospective industrial sectors. Project activities include support to start-up development in the advanced technologies area and strengthening education system to respond to modern economy labour force needs.

The purpose of the consultancy is to contribute to improved municipal expenditure management through the preparation of a comprehensive financial review that will result in recommendations for better utilization of budgetary resources. While organizational structure and administrative capacity of local governments are key for the overall effective service delivery, the financial management capacity is another important factor determining their efficiency side. This activity will seek to instigate sustainable reduction of local government operating budgets (by at least 3 % measured against the annual operating budget at the end of 2018), so as to free up financial resources for local development. The main objective of the consultancy is to deliver a detailed financial review report for selected local governments, including an in-depth expenditure analysis as well as a set of recommendations aimed at maximising the impact of available financial resources. In this regard, two local Municipal Expenditure Management Consultants (hereinafter the Consultants) will be engaged to work as a team.

Duties and Responsibilities

The review will be undertaken for the benefit of 10 local governments, out of which 7 previously participated in a similar exercise. For those local governments, previous financial reviews[1] will be used as a baseline.

10 selected local governments will be grouped together in 2 geographic clusters:

• Cluster 1: (Banja Luka, Doboj, Gradiška and Modrica) – maximum 24 expert days;
• Cluster 2: (Orašje, Odžak, Tešanj, Žepce, Stari Grad Sarajevo, Centar Sarajevo) – maximum 36 expert days;

One Consultant will perform the financial review for one cluster only. However, the Consultants will work as a team, exchanging information and providing feedback to each other. In their applications, interested Consultants are expected to indicate for which cluster they apply, specifying accompanied costs. Interested Consultants may apply for both clusters but can be selected to conduct the review for one cluster only.

The Consultant will conduct thorough review of municipal budget expenditures, including, but not limited to: (1) operational costs (printing, IT services, procurement approach, etc.); (2) utilities’ expenditures (electricity, heating, water costs, etc., in municipal-owned buildings), (3) infrastructure/assets management improvement and reduction of related costs; (4) selected service-delivery related systems (street lightening, water supply, etc.). Each review will provide a set of concrete recommendations and cost-efficiency measures, to be considered by local governments. In the end, the reviews will contribute to increasing transparency and accountability of local governments, improving revenue collection and expenditure performance, optimizing budget allocation procedures, and strengthening local governments’ role and position in intergovernmental fiscal considerations and empowering local development.

In this context, the Consultant will perform the following tasks:

1. In-depth budget analysis, based on pre-existing methodology;
2. Producing and presenting a financial review report.

• [1] The financial reviews have been prepared for Banja Luka, Doboj, Gradiška, Modrica, Orašje, Odžak and Žepce in 2016.

Task 1 – Administer in-depth budget analysis for the selected local governments:

As part of the assessment process foreseen through the methodology, the Consultant will:

• Get acquainted with the local government financial review methodology;
• Analyse the way local governments raise, allocate, and manage their financial resources for last three years at least and present trends;
• Analyse and present the composition/structure of local governments revenues;
• Create a work plan through desk review of budgets and other relevant documents, as well as documents and legal acts related to the disbursement of budgetary funds allocated for local development;
• Develop a detailed questionnaire covering the structure of current budget expenditures and implement relevant survey among selected local governments;
• Analyse and present the composition of municipal expenditures by function (general public services, housing, public order, environment, defense, economic affairs, recreation culture and religion, health, education, social protection and other);
• Conduct thorough reviews of municipal budget expenditures (economic categories), including, but not limited to: (1) operational costs (printing, IT services, procurement approach, etc.); (2) utilities’ expenditures (electricity, heating, water costs, etc., in municipal-owned buildings), (3) infrastructure / assets management improvement and reduction of related costs; (4) selected service-delivery related systems (street lightening, water supply, etc.);
• Conduct in-person interviews with representatives and relevant employees from selected local governments. Any specific follow-up consultations and clarifications can be done by telephone, e-mail, etc.
• Explore the priority cost-reduction measures identified within partner local governments;
• On the basis of the desk review, questionnaires, and interview recommend tailor-made, concrete and precise recommendations for each local government geared towards cost-optimisation measures;
• Collect local governments feedback and identify on-site technical assistance package.

Task 2 - Producing and presenting the financial review report:

On the basis of the findings obtained through Task 1, the Consultant will:

• Draft a comprehensive review (in one of the BiH languages) containing detailed analysis, findings, recommendations and comments for selected local governments. The review will also provide a set of concrete recommendations and cost-efficiency measures, to be considered by local governments;
• Deliver a structured financial review for each local government including, but not limited to:
  • Financial background;
  • Composition and structure of the revenues;
  • Detailed composition and structure of expenditures (functional and economic classification);
  • Cost-optimisation measures;
  • Identified technical assistance package;
  • Set of recommendations.
• Present the findings of the analysis to the Project Team, along with the submission of the draft document;
• Following approval of draft report by UNDP, present findings and recommendations to local government officials and facilitate relevant discussion;
• Update final draft report as a result of discussions with local stakeholders, as needed. 

Deliverables/outputs

The Project Team will closely oversee service provision, working in continuous coordination with the Consultant.

The service deliverables, including papers and all relevant materials, will be available for future use within the EGG Project and by the relevant stakeholders, as well as by UNDP and other projects in the field of local governance. The entire service will be delivered in official languages of BiH.

The Consultant is responsible for the following deliverables:

Cluster 1:

Task 1 – Administer in-depth budget analysis for the selected local governments:

• Budget analysis conducted 20 expert days - by end of June 2019, 70%;

Task 2 - Producing and presenting the financial review report:

• Final report approved and presented 4 expert days - by end of September 2019, 30%;

Cluster 2:

Task 1 – Administer in-depth budget analysis for the selected local governments:

• Budget analysis conducted 30 expert days - by end of June 2019, 70%;

Task 2 - Producing and presenting the financial review report:

• Final report approved and presented 6 expert days - by end of September 2019, 30%.

Competencies

Corporate competencies:

• Demonstrates integrity by modelling 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
• Treats all people fairly without favouritism;
• Fulfils all obligations to gender sensitivity and zero tolerance for sexual harassment.

Functional competencies:

• Demonstrates professional competence to meet responsibilities and post requirements and is conscientious and efficient in meeting commitments, observing deadlines and achieving results;
• Results-Orientation: Plans and produces quality results to meet established goals, generates innovative, practical solutions to challenging situations;
• Communication: Strong analytical, reporting and writing abilities, including the ability to convey complex concepts and recommendations, both orally and in writing, in a clear and persuasive style tailored to match target audiences;
• Team work: Ability to interact, establish and maintain effective working relations with a culturally diverse team;
• Client orientation: Ability to establish and maintain productive partnerships with national partners and stakeholders and pro-activeness in identifying of beneficiaries and partners’ needs and matching them to appropriate solutions.
• Proven skills and expertise in participatory and inclusive policy development, planning, project design;
• Proven communication, facilitation and advocacy skills, and ability to work in an environment requiring liaison and collaboration with multiple actors including government representatives, donors and other stakeholders.

Required Skills and Experience

Academic Qualifications/Education:

• University degree in economics, public finances or public administration.
• Master’s degree will be considered an asset.

Experience:

• 10 years of relevant experience in the field of financial policy planning, public finance management, strategic development or sustainability management;
• Experience in working with government authorities;
• Proven ability to undertake professional research using both quantitative and qualitative methods;

Languages Requirements:

• Excellent writing and oral communication skills in in the official languages in Bosnia and Herzegovina and in English.

Other Requirements:

• Excellent computer skills (MS Office applications) and ability to use information technologies as a tool and resource.

Award Criteria: The consultancy will be awarded to the highest qualified applicant through the combination of technical qualifications and financial offer.

Qualification Requirements:

• University degree in economics, public finances or public administration - Weight: 50%, Maximum points: 50;
• Previous experience in similar assignments - Weight: 50%, Maximum points: 50;

Only candidates obtaining a minimum of 90 points would be considered for Technical Evaluation.

Technical Evaluation:

• Qualification Score - Weight:10%, Maximum points:10'
• 10 years of relevant experience in the field of financial policy planning, public finance management, strategic development or sustainability management - Weight: 45%, Maximum points: 45;
• Experience in working with government authorities - Weight: 35%, Maximum points: 35;
• Experience in preparation of professional researches using both quantitative and qualitative methods - Weight: 10%, Maximum points: 10;

Only candidates obtaining a minimum of 70 points would be considered for the Final Evaluation.

Final Evaluation:

The final evaluation score will be based on Combined Scoring Method where technical evaluation will be weighted a maximum of 70% and combined with the financial offer which will be weighted a maximum of 30%.

IMPORTANT NOTE: Consultants are expected to indicate for which cluster they apply, specifying accompanied costs. Interested Consultants may apply for both clusters but can be selected to conduct the review for one cluster only.

EVALUATION

Individual consultants will be evaluated based on the following methodology:

Cumulative analysis

When using this weighted scoring method, the award of the contract should be made to the individual consultant whose offer has been evaluated and determined as:
a) responsive/compliant/acceptable, and
b) Having received the 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%

Applicants are required to submit an application including:

1. Proposal:

• Explaining why they are the most suitable for the work;

2. Completed and signed the Offeror’s template Confirming Interest and Availability (please follow the link: https://popp.undp.org/_layouts/15/WopiFrame.aspx?sourcedoc=/UNDP_POPP_DOCUMENT_LIBRARY/Public/PSU_%20Individual%20Contract_Offerors%20Letter%20to%20UNDP%20Confirming%20Interest%20and%20Availability.docx&action=default);

3. Latest personal CV, including past experience from similar projects, and email, telephone and any other contact details for references;

4. Financial proposal which will separately specify professional fee, indicating number of anticipated working days, travel costs (air-ticket or use of private vehicle), living allowance, and all other applicable costs.

Please scan all above mentioned documents and upload as one attachment only online through this website.

Note:

• For an assignment requiring travel, consultants of 65 years or more require full medical examination and statement of fitness to work to engage in the consultancy.
• Due to large number of potential applicants, only competitively selected candidates will be contacted for remaining steps of the service procurement process.