Terms of Reference for the position of

External Validator (Consultant)

Designing, Development, Training, and Implementation of

Audit Management Information System (AMIS)

Terms of Reference

May 2013

A. Background

The Purchaser

  1. The purchaser of the Audit Management Information System (AMIS) is Project Director, Project to Improve Financial Reporting and Auditing (PIFRA). PIFRA is supporting modernization of accounting, budgeting, and auditing functions at national and sub-national levels. Information Technology is a pivotal component of this process. As part of this initiative, the Office of the Auditor-General of Pakistan (OAGP) seeks to establish a robust and reliable Audit Management Information System (AMIS) that will not only ensure timely and accurate reporting of observations but also continuous follow-up on audit reports.
  1. The Auditor-General is appointed under, and draws its mandate from the Constitution of Pakistan. The reports of the Auditor-General are laid before the Parliament and reviewed by the Public Accounts Committee at national and sub-national level. The Auditor-General is independent in determining the nature and scope of its work. The OAGP facilitates legislative oversight through its work with support from approximately 5,000 personnel including over 1,000 auditors at various Field Audit Offices (FAOs) across Pakistan. (

Project Stakeholders

  1. Primary stakeholders of the AMIS initiative are the Auditor General of Pakistan, the World Bank, Project Managementand the Field Audit Offices (FAOs). The World Bank and Government of Pakistan have identified need for reforms and providing funds for envisaged changes in the financial management of the country. The AMIS Project Management is coordinating and facilitating project implementation to achieve planned outcomes including AMIS. The users, i.e., the officers and staff of the OAGP, are main stakeholders who will be benefiting from successful and timely completion of the AMIS project. Within this large group, there are 26 FAOs that carry out audits and prepare audit reports for the OAGP. The implementation of AMIS project will enhance effectiveness of the OAGP as it will give this office more control over how audits are being planned and executed at FAO level. The Auditor General of Pakistan is the main sponsor of this project.

Business Objectives - OAGP

  1. The OAGP is committed to promotingtransparency and accountability in governmental operations. It seeks to bring improvements in financial discipline and internal control environment within the executive departments through its audits. The OAGP carries out the following audit activities in accordance with the INTOSAI auditing standards and international best practices.
  1. Financial Attest provided by the DAGP Pakistan covers a very broad range of governmental operations and focuses on audit opinion on the financial statements and the state of internal controls in the audited entities. There are three tiers of government (Federal, Provincial and District) and three types of organizations (those on the central accounting network, self-accounting entities budgeted by the government and public sector entities). Financial attest is provided at all tiers and for all categories, except those entities whose accounts are, by law, auditable by private sector auditors.
  1. Regularity and Compliance Audits are conducted under roll over planning for all organizations at all tiers. The focus of these audits is to review transactions for compliance against rules and regulations. Regularity and Compliance Audits are carried out annually for all tiers of government.
  1. Performance Audits focus on the outcomes of various projects and programmes with special emphasis on social sectors.
  1. Information System Audits have recently been introduced at DAGP. These audits are carried out largely in compliance with ISACA standards.
  1. Special Studies are conducted on the request of audit clients or on the directives of public accounts committee, based on the TORs agreed.
  1. Training, Research and Publications are the main tools of the DAGP to keep abreast of the developments in the profession. It has a network of training establishments spread across the country, where public servants are trained in auditing, accounting, and financial management. Its research operations have produced a Financial Audit Manual, an internationally recognized Performance Audit Methodology with 20 sector specific Guidelines and a series of Research Papers.
  1. The OAGPis based in Islamabad and conducts operations through FAOs each of which is headed by a Director General. Audit methodology used across all FAOs is, on the whole, the same though certain differences in the workflow were highlighted during a process documentation carried out in the past. Presently, the use of technology for audit is limited to word processing and spread sheets, though a culture of using Computer Assisted Auditing Techniques (CAATs) for data analysis, review and sampling is picking up roots in some FAOs that can getfinancial data in electronic form from their clients. Communication between audit parties and their supervisors as well as field audit offices and the headquarters is mainly paper based. So too is the review of field work including drafting of audit paras for reports.No central electronic repository/ database covering past and ongoing audits is established to date. In the absence of such database, information required by the headquarters is collected manually from FAOs as and when required, delaying decision making and weakening quality management function. Working Papers/ Briefs for Public Accounts Committee (PAC) meetings are prepared by FAOs and submitted to headquarter for review and approval. Given this paper-based environment, follow-up on issues flagged in audit numerous reports and directives issued by the PAC remains a major challenge, notwithstanding the fact that every FAO has a small PAC section follow-up on such issues.
  1. The implementation of AMIS would enhance the efficiency and effectiveness of the OAGP by addressing following constraints:
  • Non-availability of timely management information at headquarters forplanning and monitoring of audit activities’
  • Differences in business processes/ workflows in field audit offices;
  • Quality management focusedprimarily on output rather than method;
  • Limited supervision because of insufficient supervisory staff to carry out field monitoring;
  • Delays in approval process;
  • Non-availability of central resource/guidance for auditors on any technical issues especially when they are in the field;
  • Absence of any centralized databank of previous audit reports, working papers and technical literature
  1. The implementation of AMIS will improve the quality, credibility, and timeliness of the OAGP’s reports by:
  • Introducing central, top-down strategic plans to coordinate the activities of FAOs;
  • Strengtheningquality assurance during an audit (focusing on method), rather than after it (focusing on output)
  • Providing technical support and help to its audit teams, wherever they are conducting their audits
  • Cutting down on the cost and time involved in oversight of audit parties, and FAOs and allowing continuous assessment of FAOs against set targets:
  • Increasing auditors’/FAOs’ compliance with the requirements of FAM in audits;
  • Allowing headquarters and FAOs to track compliance with audit recommendations and directives of PAC; and
  • Harmonizing business processes across the OAGP.

B. SCOPE OF SERVICES

  1. The External Validator ( the Consultant) shall be required to perform the following services:
  1. Assist bid evaluation committee in the evaluation of bids for the selection of a Software Development Firm (SDF) as per the requirements laid down in the bid document;
  2. Certify in writing that the selected SDF fully conforms to the technical and general requirements as defined in the bidding documents.
  3. Develop test scripts for the Operational Acceptance Test (OAT) which will be discussed and finalized with the selectedSDFprior to the signing of contract.
  4. Review the hardware requirementsprepared by the SDF and provide assurance that the specifications meet all technical requirements of the AMIS. Hardware for purpose of these TORs means all end user hardware including data center and networking equipment.
  5. Verify and sign off all project deliverables of the SDF. All payments to the SDF will be contingent upon the Consultant and PIFRA project manager signing off on the deliverables.
  6. Oversee, verify and sign off all OATs.
  7. Review and recommend training material prepared by the SDF and oversee its delivery to the OAGP staff;
  8. Assist PIFRA in taking over the AMIS operations from the SDF before the closure of the AMIS project. This will include preparing an exit strategy including preparation of the TORs of technical experts that may be required for running AMIS operations;
  9. Submit a Monthly Progress Report (MPR) to the AMIS project manager indicating progress made vis-à-vis previous month, identifying bottlenecks, and suggesting steps that need to be taken by PIFRA to keep the project on track.
  1. Prepare status updates and presentation for stakeholders on AMIS project as and when required.
  1. Develop contingency plans as necessary.
  1. Submit a project closure report on completion of the AMIS project certifying that all project requirements as agreed with the SDF in the contract have been satisfactorily met.
  1. The activities specified above will cover all project locations across Pakistan. The duration of this assignment is till the final completion of the AMIS project.
  1. Any other task that is relevant to the implementation of AMIS at the direction of the AMIS project manager.

Qualification Criteria:

  1. The interested individuals will be evaluated and prequalified on the basis of the following parameters:
  • Master degree Computer Sciences, Information Technology, Project Management or CA/ACCA. Candidates holding related certifications such as CISSP, CISA, PMP etc. may be awarded additional points;
  • Significant experience of overseeing the development and deployment of a comparable Management Information System;
  • Experience of working for the public sector in Pakistan.

Essential Job Skills & Abilities

  • Skill in planning, maintaining and meeting multiple deadlines.
  • Ability to work independently with considerable aptitude for initiative.
  • Skill in effective verbal and written communications, including active listening skills and skill in presenting findings and recommendations.
  • Generally aware of new developments in industry and processes and has ability to apply them to work as appropriate.
  • Ability to establish and maintain harmonious working relationships with co-workers, staff and external contacts, and to work effectively in a professional team environment.

Remuneration

  1. The remuneration would be in range of PKR 250,000 to PKR 350,000 per month depending on the qualification and experience of the selected individual. The Consultant will be entitled to Travelling Allowance/Daily Allowance as admissible to an officer of BPS-21.
  1. The consultant will be allowed 20 days leave in a calendar year, not to be carried forward. Leave beyond 20 days in a year will be treated as without pay.
  1. Appointment would be for an initial period of one year which would be extendable.

List of Acronyms

AGPAuditor General of Pakistan

AMIS Audit Management Information System

AIR Audit Inspection Report

DAC Departmental Accounts Committee

DAG Deputy Auditor General

DAGPDepartment of the Auditor General of Pakistan

DPs Draft Paras

FAO Field Audit Office

FAM Financial Audit Manual

ITInformation Technology

INTOSAIInternational Standards for Supreme Audit Institutions

OAGP Office of the Auditor General of Pakistan

OATOperational Acceptance Test

PAC Public Accounts Committee

PAO Principal Accounting Officer

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