MINISTRY OF ECONOMY AND FINANCE

PUBLIC FINANCIAL MANAGEMENT (PFM) REFORM PROGRAM

MULTI-PARTNER PFM TRUST FUND

Terms of Reference

Post title:Financial Consultant

Duty station:Reform Committee Secretariat, Ministry of Economy and Finance

Starting date:As soon as possible

Background

The Royal Government of Cambodia has launched an ambitious program to reform public financial management systems and capacities. The program was formally launched in December, 2004 and is commenced in February 2005.

The Program tackles a wide range of improvements in budgeting, accounting, auditing and control systems as well as related capacity development, organizational and motivational measures. Further information can be found on the MEF web site [MEF.GOV.KH ].

The Program is led by the Royal Government of Cambodia and supported by a wide range of development partners. Both the Government and partners are concerned to see that the program is developed on a holistic basis and using a fully integrated management structure so that the program maintains coherence.

The major activities which the Program will fund are:

(a)Technical Assistance consultancies – short and long term, national and international consultants;

(b)Merit Based Pay Incentives (paid on a monthly basis);

(c)Workshops and training;

(d)Equipment and office supply; and

(e)other goods and services

Sound financial management is essential to enable successful achievement of program objectives. The Program funds, which consist of grant funds from development partners and government funds, will be managed by the Reform Committee Secretariat of MEF. Within the Secretariat, the Manager, Accountant and Procurement officers will be the primary staff involved in the financial accounting and management of program funds, transactions and assets. MEF Departments will have responsibility for initiating financial transactions and certifying the receipt of goods and services.

The Ministry is currently seeking a consultant to assist the Ministry and Secretariat to:

  • Define and implement an appropriate financial system, procedures and internal controls to properly account, manage and report on the Program’s funds, expenditures and assets
  • Document the financial programs in a Program specific Finance Manual (based on the Government’s Standard Operating Procedures and Finance Manual for ADB/World Bank projects)
  • Train Secretariat and relevant MEF departmental staff in the finance system and procedures

Request Services and Scope of Services

The Consultant will:

  • Analyze the accounting and financial management requirements of the Program, Program and develop and recommend an appropriate financial system to ensure proper processing, accounting, management and reporting of project funds and transactions. It is envisaged the Program’s finance system will consist of both a computerized accounting application and manual processes. The system must be capable of:

-Recording the Program budgets and reporting progress against budget

-Recording receipt of funds from donors and the government

-Recording and reconciling of multiple bank accounts

-Recording purchase, contract information and producing contract registers

-Recording and report expenditure payments for general goods and services against contracts and supplier

-Recording and reporting expenditure payments against contracts and suppliers

-Recording payroll entitlements by employee

-Recording expenditures by both source of funds and program expense categories to support the preparation of Statements of Expenditures in formats acceptable to the World Bank

-Recording and reporting for fixed assets

-Generating regular financial management reports for the Program in formats acceptable to management and the World Bank

  • Purchase and install the agreed computerized accounting application and tailor to the Program’s requirements. This will involve, but not be limited to, developing the chart of accounts, defining the accounts and records to be maintained, developing reporting formats for both operational requirements and financial management reporting, establishing appropriate security of system access, accounts and records, back up processes. Relevant application licenses must be registered in the name of the MEF and must include suitable and appropriate support arrangements for problem solving and future system upgrades.
  • Establish appropriate documentation retention and storage arrangements relating to financial transactions.
  • Document the Program’s policies, processes and procedures in a Program Finance Manual
  • Develop and undertake training of the Reform Secretariat staff and key staff of MEF departments in the Program finance procedures, and train Reform Secretariat staff in the operation, administration and maintenance of the computerized accounting system

Consultancy Deliverables

The Consultant is required to deliver the following:

  • Interim Report evaluating options and setting out the recommended financial system for the Program
  • Installed and fully operational tailored computerized financial application
  • Program Finance Manual
  • Training
  • Final report summarizing the outcomes of the consultancy and making recommendations on future developments (as necessary) considered desirable.
  • Provide support services for one year after installation the system

Commencement and Duration of the Consultancy

The consultancy is planned to commence in April and to be completed within 6 weeks.

The consultant will report directly to Reform Committee Secretariat Manager of MEF. The Reform Committee Secretariat will provide administrative support, office space, and all relevant documents to the consultant.

Consultant’s Profile

The consultant will have the following qualifications:

  • Demonstrated experience in the design and implementation of financial systems
  • Demonstrated experience in developing finance processes and procedures and documenting these in suitable Manuals
  • Knowledge and understanding of government public financial management and World Bank project requirements, including familiarity with budgeting, accounting, reporting
  • Knowledge of international public sector accounting standards and reporting standards
  • Demonstrated ability and experience working as a consultant in developing countries;
  • Excellent communication skills and ability to write in English and Khmer

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