PFMP
Philippines – Australia
Public Financial Management Program
TERMS OF REFERENCE FOR THE ENGAGEMENT OF A
CONSULTANT
INTERNAL CONTROLS & BUSINESS PROCESSES
ADVISOR AT THE DEPARTMENT OF
EDUCATION (DEPED)
1. BASIC INFORMATION
Activity Title
Engagement of a Internal Controls & Business Processes
Advisor for DepEd
Implementing Agency
Department of Education (DepEd)
Partner Agencies
Department of Budget and Management (DBM), Commission
on Audit (COA), Department of Finance (DOF), Bureau of
Treasury (BTr).
Duration
Two years full-time
2. BACKGROUND
The Government of the Philippines (GOP) launched a comprehensive Public Financial
Management (PFM) reform program in February 2011, as provided for in the Philippine
Public Financial Management Reform Roadmap. This strategic plan for a whole-ofgovernment approach to PFM reforms, aims to clarify, simplify, improve and harmonize
the financial management processes and information systems within the civil service.
Where necessary this includes reengineering business processes, integrating relevant
systems in the Department of Budget and Management (DBM), Commission on Audit
(COA), Department of Finance (DOF) and Bureau of Treasury (BTr), as well as
implementing agencies, and reassigning functions between the oversight agencies. The
desired results are improvements in fiscal discipline, fund allocation efficiency, and
operational efficiency for the effective delivery of public services.
The Public Financial Management Program (PFMP) is a joint initiative of the Governments
of Australia and the Philippines. The Program commenced in October 2011 and directly
assists the Government to implement its PFM Reform Roadmap. Through the Department
of Foreign Affairs and Trade, the Australian Government has committed up to A$30 million
over five years, 2011–2016. The DFAT – Australian Aid directly manages the PFMP.
A Program Steering Committee (PSC) provides strategic oversight to program planning
and implementation and decides funding priorities year to year. It comprises senior
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officials from DBM, DOF/BTr, COA and the Department of Foreign Affairs and Trade –
Australian Aid, and aligns closely with the work of the government’s inter-agency PFM
Committee. The National Economic and Development Authority (NEDA) plays an advisory
role to the Program.
The ambitious reforms envisaged under the Roadmap will involve significant changes
throughout the Administration in the pursuit of improved accountability, transparency
and use of public funds. These changes, in line with the PFM Reform Roadmap and the eGovernment Master Plan, will involve modernization of management information systems,
such as the proposed Government Integrated Financial Management Information System
(GIFMIS), and also lead to major organizational, people and process change. The
implementation of the GIFMIS is the pivotal component of the PFM Reforms, and its
procurement, based on commercial off-the-shelf software (COTS) is now at an advanced
stage. The GIFMIS contractor is expected to be mobilized early in the 3rd Quarter of 2014.
DepEd’s current financial management systems are largely manual and fragmented. The
GIFMIS, when implemented, will automate and integrate financial management processes,
and will represent one of the largest systems implementation projects undertaken in the
Government of Philippines. It will also represent a significant staff capacity building
challenge within each agency particularly for the personnel of the Finance and
Management Services.
Implementation of GIFMIS will be undertaken in a phased manner, initially in the Central
Oversight Agencies, of DBM, COA, DOF and BTr, and piloted in one National Government
(line) Agency, the Department of Education (DepEd). It is envisaged that initial go-live will
take place during late 2015, and implementation in two DepEd pilot sites will be
completed by mid-2016 (the end of this specific assignment). Thereafter, it is envisaged
that the GIFMIS will be rolled out to the remaining Regions and DOs.
Work done to date in this area includes:

Phase I – Documentation of financial management processes and functionalities, which
remains a relevant reference source for the implementation of GIFMIS.

Phase II – Prepare DepEd for GIFMIS through support to implementation of ongoing
PFM reforms, including implementation of the Unified Account Code Structure (UACS),
the Treasury Single Account (TSA) and review the ICT logistical requirements for
GIFMIS, with an inventory of ICT assets for all the key implementing offices. Building
on the FMIS Conceptual Design and Functional Review documents, a more detailed
review was undertaken, mapping DepEd functional and non-functional requirements,
against the GIFMIS Conceptual Design and Functional Requirement Specifications.
Additionally, in recognition of the change implications emanating from the GIFMIS
implementation in DepEd, a Change Management Plan was produced.
Phase III of technical assistance will provide support to DepEd in implementing GIFMIS,
and managing change, in the pilot DepEd sites. An important feature of this phase is the
need to focus on the successful and sustained adoption of GIFMIS by staff throughout
DepEd, and their adoption of the concepts and principles of Managerial Accountability.
The Consultant will play a key role in working with the leadership and management in
DepEd, as well to successfully plan, prepare, transition and implement the changes whilst
reducing associated risk.
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The role assumes extensive engagement from the department and its sub-divisions. This
includes the proactive support of senior leaders and managers and the availability of
sufficient suitable staff to fill co-opted roles to ensure the effective implementation of the
change management framework and the successful implementation of the target change.
3. KEY RESULTS/OBJECTIVES
The overarching objective of this activity is to assist the GOP to improve national budget
management and monitoring, and the accuracy and timeliness of financial reporting linked
to the performance management and physical accomplishments of government as a whole.
The successful implementation and full adoption of the GIFMIS in DepEd is fundamental to
effective public financial management in the Department. Substantial breakthrough
improvements in financial management practice are almost impossible using largely
manual and fragmented systems as information delivery can be unreliable. Ongoing PFM
reforms will provide incremental improvements and create readiness for GIFMIS. The full
benefits of these reforms will only be realized when GIFMIS is fully implemented in the
Department.
The major long-term objectives of this activity are i) to ensure that, in time, DepEd is
capacitated to use and leverage GIFMIS capabilities fully, and ii) the concepts of
managerial accountability are well understood by DepEd management at all levels.
4. SCOPE OF WORK
The Consultant will work closely with the Team Leader, consultant team, counterpart
team, internal and external auditors, in assisting DepEd modernise its internal controls
and business processes in the following activities:

Prior to GIFMIS implementation in the department, plan, lead and manage data takeon activities on budget and brought-forward accounting balances from existing
systems. Advise and provide direction through prioritising areas for investigation,
reconciliation and data cleansing based on risk and materiality assessments, and
specifically:

Ensuring appropriate procedures are followed when extracting data from
existing systems for review and analysis to prevent possible data corruption.

Produce a Data Take-On Plan and manage its implementation in Central Office
and NCR initially.

Train, mentor and coach DepEd operational managers and its implementation
team on data analysis, validation, reconciliation and cleansing, including use of
analysis tools and techniques.

Agree an action plan for institutionalising the cleansing and take-on of data,
and full financial management oversight in the remaining Regions, Divisions
and Implementing Units in readiness for the wider rollout of GIFMIS.

Oversee and lead the validation of data take on into the GIFMIS to ensure
complete and accurate transfer of data.

Facilitate engagement of Internal Audit Service (IAS) and the Commission on
Audit (COA) on agreeing actions and treatments to be undertaken in respect of
long outstanding, un-reconcilable items, which are affecting the integrity of
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information to be brought into GIFMIS, and also to more broadly address
outstanding audit queries.
o
Support DepEd working with the GIFMIS contractor during the design phase, advising
on role-based design and integration with the new business processes, organisational
structure and internal control system, which may include revision of thresholds,
business rules and procedures, workflows; authorisations and approvals and
segregations of duties. It will also include the introduction of compensating systembased controls and elimination of redundant manual controls and procedures where
appropriate. During implementation, overseeing the allocation of staff to roles.
o
Provide training to FMS offices on newly introduced processes and procedures
developed during GIFMIS readiness and oversee their wider rollout in DepEd
(especially in relation to implementation of systems-based controls). This activity will
also entail, facilitating the engagement of IAS and COA in GIFMIS design, configuration,
testing and acceptance processes; and interfacing requirements for ACL, in IAS. It will
also require the strengthening of IAS capacity on electronic data interrogation and
analysis and therefore enhance the overall internal control system of DepEd.
o
Assist the Team Leader on business process review, charting of future to-be processes,
and delivering awareness training of integrated generic processes, change
implications, and collaborative financial management under a fully automated and
integrated environment to build staff capacity and promote GIFMIS adoption.
o
Contribute to the Design Documents, PFM Manual and Financial Accounting Manual,
ensuring sufficient and appropriate control procedures are incorporated. In this, the
Consultant shall assist DepEd to ensure that all activities are coordinated and
approved by the GoP Chief Financial Officer at DBM.
o
Assist the office of the CFOIC to explain and communicate the concept of Managerial
Accountability to management and staff within DepEd, as well as promulgating the
proposed revised regulatory framework on its release.
o
Support the office of the CFOIC to implement a competency framework for staff
responsible for FMC and IA in NGAs. Within DepEd, assist the office of the CFOIC to
coordinate and supervise the establishment of sustainable training arrangements and
of setting practical criteria for the quality requirements of internal auditors, financial
staff and managers at all levels, primarily through professional development, advisory
support mechanisms and mentoring.
5. OUTPUTS
In line with the Scope of Work, the Consultant shall deliver the following specific outputs:
i.
Prepare and deliver training to relevant management and FMS staff on data
analysis, validation, reconciliation and cleansing, using electronic analysis tools
and techniques where possible.
ii.
Prepare an action plan for institutionalising the cleansing and take-on of data, and
full financial management oversight in the remaining Regions, Divisions and
Implementing Units in readiness for the wider rollout of GIFMIS.
iii.
Prepare a schedule of long outstanding, un-reconcilable items, which are currently
affecting the integrity of information to be brought into GIFMIS to engage the
Commission on Audit (COA) for agreeing accounting treatments for such items.
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iv.
Prepare a draft Financial Management Manual for the department to facilitate the
introduction of modern internal controls under the National Government Internal
Control Guidelines (NGICS), and prepare and deliver training and dissemination
workshops thereon for the department in general, and for the two selected GIFMIS
pilot sites in particular.
v.
Prepare and deliver workshops to DepEd senior management (director level and
up) on the concepts and principles of Managerial Accountability to accord with
Presidential Decree No. 1445 and the Administrative Code of 1987.
vi.
Additional outputs as may be identified from time to time, as needed.
6. QUALIFICATIONS AND EXPERIENCE
The Consultant is required to have the following qualifications and experience:

A university degree, or professional equivalent, in finance, economics, accounting,
information systems, public administration, or other related field. A recognised
international professional accounting qualification (CPA, CA, ACCA or CIMA) will
be a particular asset.

Relevant professional international experience of ten (10) years or more in
implementing and/or managing financial accounting and information systems
reforms at a senior level (ministry or central government), preferably in relation
to development of financial management information systems (FMIS).

Previous experience in the re-engineering, introduction and supervision of
business processes will be a considerable advantage.

Knowledge of public sector budgeting and accounting systems and procedures in
the Philippines will be a considerable advantage.

Excellent interpersonal skills and the ability to work in a sensitive cultural
environment.

Strong analytical, oral and written communication skills and commitment to
meeting tight deadlines.

Fluency in English is required.
7. REPORTING AND TIMING
The Consultant will report to the Team Leader for the GIFMIS Implementation in DepEd.
All work will be coordinated with the GIFMIS PIU and the Implementation Team of the
GOP and the selected GIFMIS Contractor/Service Provider. The Consultant will deliver the
following reports:

Inception Report: an Inception Report including draft Workplan for the conduct of
the assignment will be submitted to the GIFMIS Implementation Advisor within three
weeks of commencement. This will be incorporated into the Inception Report of the
GIFMIS Implementation Advisor, to be agreed with the PIU and PFMP. Following that,
any amendments or deviations to the agreed Workplan will be presented to the
PIU/PFMP in advance before such amendments or deviations are effected.

Activity Progress Reports: A Quarterly Progress Report is required, which will be
prepared using a template provided by PFMP. These reports will be coordinated with
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the GIFMIS Implementation Advisor. Reports will summarize progress against the TOR
and key issues affecting implementation. The Reports may also need to include
performance information relevant to the PFMP Monitoring and Evaluation
Framework. Any such requirements will be advised by PFMP during the inception
period. Additional reports may also be required by the relevant GOP Project
Implementation Unit, and these will also be determined in discussion with the PIU
during the inception period.

Final Completion Report: The Final Report will be submitted to the GIFMIS
Implementation Advisor for onwards submission to the PIU/PFMP on the conclusion
of the assignment, with presentation of recommendations for any further assistance
on the implementation of GIFMIS and the introduction of modern internal controls to
the PIU and inter-agency PFM Committee.
The Activity shall commence in July 2014, be conducted in Manila, the Philippines, and run
for a period of two years. This is a full-time position.
The following reporting schedule will be followed by the Consultant:
Report
Date
To Whom
Inception Report
Three weeks from commencement
DepEd/PFMP
Activity Progress Reports
Quarterly from commencement
DepEd/PFMP
Final Report
End of assignment
DepEd/PFMP
8. ASSUMPTIONS AND RISKS
For the successful implementation of the Activity it is assumed the below critical success
factors are in place. Risks associated with the successful completion of this Activity are
reflected in one or more of these assumptions failing to apply.

There is commitment, ownership and effective leadership for GIFMIS implementation,
managerial accountability and PFM change management at senior levels within DepEd.

There is a willingness and capacity on the part of DepEd to provide effective
supervision and support to the Activity, and ensure resources are provided as
required on time.
9. RESOURCE CONTRIBUTIONS
DepEd will provide office space and access to computer network, internet and telephones;
use of conference/training/meeting rooms and related expenses as required; and
travel/per diem expenses of counterpart staff in cases of any field activities arising from
the Activity.
PFMP will provide all other resources as required by the Consultant.
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