Government of Nepal
Ministry of Finance
Public Expenditure and Financial Accountability (PEFA) Secretariat
Strengthening Public Financial Management Systems Project
(Grant No. TF 010452)
Anamnagar, Kathmandu
Terms of Reference
For
The Study on the Training Need Assessment for PFM staffs
of Government of Nepal
1. Background : Over view of Nepalese PFM System
A sound public financial management (PFM) system is essential for
the effective implementation of policies and achievement of
development results. It will also support aggregate fiscal discipline,
strategic allocation of resources and efficient service delivery.
There is a wider consensus that effective institutions and systems
of PFM play constructive role for implementation of national
development policies and ultimately helping the overreaching
goal of poverty reduction. Recent fiscal reforms include planning
for enactment of the fiscal responsibility legislations and the
introduction of the new budgetary practices that would map
outlays to quantifiable deliverables, outcomes objectives and
states the risk profile of Government programs. The ongoing
governance and fiscal reforms emphasizes on the enhancement
of transparency and accountability.
The PEFA initiative has developed a robust tool for measuring PFM
performances and providing sound assessment of the quality of
PFM for countries of all income levels. Nepal has conducted PEFA
assessment based on in 2005/06 data against PEFA indicators
(PEFA assessment Report 2008) and adopted an action plan that
serve as the national policy for the overall improvement in PFM
system, processes and institutions. Effective implementation of
action plan contributes to improve PFM performances that
1
eventually help achieve better service delivery and efficiency in
public expenditure.
The Government of Nepal (GoN), following the PEFA Assessment
Report 2008 decided to establish PEFA Secretariat in 2009 to
enhance the overall performance of Public Financial Management
(PFM) and accountability in Nepal by coordinating PFM reform
activities.
PEFA Secretariat is a government agency working under the
Ministry of Finance. It works under the overall guidance of PEFA
Steering Committee chaired by Finance Secretary. The PEFA
Steering Committee is responsible for providing overall
leadership, coordination and strategic direction of the PFM reform
programme. PEFA Secretariat is coordinating the PFM reform
activities of GoN and monitoring the the implementation of the
PFM Strategy.
The main roles of the PEFA Secretariat are to develop the Overall
Framework of the Public Financial Management Reform
Programme (PFMRP), development of a capacity building
programme, develop measurable milestones for monitoring
progress, assessing and reporting progress over time, organizing
seminars and workshops on various thematic issues relating to
PFM reform, coordinating review meetings of the progress made
in various sectors and sharing major outcomes, liaisoning with
development partners, disseminating the PFMRP activities within
Government/Media/Civil Society based on Communication and
Reporting Strategy; and knowledge sharing by awarding the best
PFMRP performers, developing PEFA website and publishing
PEFA/PFM newsletter and conducting small research on PFM
innovation. Presently it is coordinating the repeat PEFA
assessment (2014) in Nepal.
The Government of Nepal has received a grant from World Bank
managed /administered Multi Donor Trust Fund (MDTF) towards
Strengthening Public Financial Management (PFM) Project, and it
intends to apply part of the proceeds of this grant to payments
under the Contract for this assignment.
2
2. Current Situation and Problems.
1. Existing arrangements as regards to trainings provided by
existing the National Public Financial Management Institutes:
In Nepal there are two training institutes working in the public
sector. One is Revenue Administration Training Centre (RATC)
and the other one is Nepal administrative Staff College (NASC).
RATC was established in 2037 B.S. (1980 AD) with a aim of
conducting career development and capacity development
trainings to the personnel of Revenue and Financial
administration which imparts trainings of short term and inservice (consists 30 working days period)trainings and conducts
short duration seminars and workshops etc. This institution is not
fully autonomous and its instructors are not fully professions as
well as generally work only for two years time period (not
interested to work for the long run / long time) which is hindering
to function in the global / changed context by covering emerging
concepts of Revenue and Financial administration. The training
programmes are also more theoretical and they are not directly
being tied with the field offices/field works and which are unable
to cover the emerging concepts of PFM related researches,
innovations etc.
The other training institute is NASC which was established on 27th
September, 1982 (11 Aswin, 2039 B.S.). This later institution i.e.
NASC is providing trainings in the field of Administration,
Management and Development to the personnel of Government
of Nepal (GoN) and public enterprises and also involved in
undertaking problem-oriented
research, consulting and
information service programmes for preparing training materials
and making training more useful. But this institution also is not
focusing on its training programmes to the emerging concept of
PFM or PFM related areas in the context of globalization and
3
adoption of International Public Sector Accounting Standards
(IPSAS) –International Financial Reporting Standards (IFRS)
/Nepal Public Sector Accounting Standards (NPSAS) –Nepal
Financial Reporting Standards (NFRS).
3. Objectives of the Consulting Service :
The main objective of the study is to conduct training need
assessment of PFM staffs of Government of Nepal (GoN) with
necessary structural reform measures in order to enhance their
capacity for effective public financial management system.
The specific objectives of the study are as follows:
 To conduct training need assessment of PFM Staffs of
GoN;
 To assess the adequacy of the training institutions for
PFM related areas in the public sector and suggest for
other alternative institutional arrangements of other
sectors
(like
universities,
research
and
other
autonomous training institutions etc).
 To
suggest
for
institutional
arrangements,
organizational and operational modalities in connection
with the establishment of autonomous National Public
Financial Management Institute, if deemed necessary.
4. Scope of Services
The scope of study / research is to conduct a study on the
training need assessment of the PFM Staffs of Government of
Nepal to make them familiar with the modern techniques of
Public Financial Management which will strengthen the
institutional and operational capacity of the Government of
Nepal by assisting in consolidating ongoing PFM reform
initiatives within the government system and contributing
further expanding PFM related reform initiatives with a view to
upgrade overall PFM systems. Also the researcher should focus
on different in-service and refresher and other training courses
4
by revisiting the PFM system of GoN and the introduction and
internalization of best practices in the field of PFM in light of
the introduction of TSA while assessing training needs of PFM
Staffs. The study should also cover the existing system and
practices of PFM system of GON, its sufficiency and gap and
identifying the feasible / potential solution which will fall under
the sphere of the well designed Public Financial Management
System. The researcher should submit a complete study report
to PEFA Secretariat for the study on the training need
assessment for PFM Staffs of GoN. Besides these, she/he
should also consider the following aspects during the
performance of her/his assignment:
 Assessing the adequacy of the training institutions for
PFM related areas in the public sector and suggesting
for other alternative institutional arrangements of other
sectors
(like
universities,
research
and
other
autonomous training institutions etc).
 Suggesting
for
institutional
arrangements,
organizational and operational modalities in connection
with the establishment of autonomous National Public
Financial Management Institute, if deemed necessary.
The researcher also should suggest the potential institutional
model to conduct PFM training.
5. Suggested Methodology:
1. Review of literature and other research work done in this area;
2. Review of the existing roles and structure of the training
institutes that are directly conducting trainings on Public
Financial Management by considering the newly introduced TSA
system and application of newly introduced Financial Reporting
System. Also pin point the roles of PFM staffs at central and
district level.
3. Develop questionnaire to find out the existing gaps in the
performance of PFM staffs of Government of Nepal (GoN) and
carry out survey of at least 20 PFM Staffs of GoN in three
5
ecological regions based on the set questionnaire; and identify
feasible solution for reform
4. Analysis of survey data/outcomes to draw conclusion and
recommendation for improvement;
5. Conduction of one day Workshop of stakeholders for the Study
on the Training Need Assessment for PFM staffs of Government of
Nepal in the central level (minimum 2 times).
6. Presentation of findings and recommendations of this study to
National PFM Steering Committee.
5. Specific Duties and Responsibilities to be performed by
the researcher (consulting firm/ individual) :
The researcher shall be responsible to perform the following
tasks and responsibilities under the technical direction and
supervision of PEFA Secretariat by considering the given
objectives of the study:
 Conduct a study on the training need assessment of PFM
Staffs of GoN covering necessary institutional and structural
arrangements by preparing a research report based on the
following format :
1. Background of the Study;
2. Statement of the Problem;
3. Significance of the Study;
4. Objectives of the Study;
5. Limitation of the Study;
6. Methodology;
7. Analysis and Findings;
8. Summary, Conclusions and Recommendation;
9. References;
10. Appendix;
11. Acronyms.
12. Glossary
6

6.
The Researcher / Consultant will work under direct
supervision of PEFA Coordinator. Furthermore, s/He should
work together with the Member Secretary and other staffs of
PEFA Secretariat.
Availability of other support (Related Information) :
The consultant / researcher shall be made available the
following supports for the accomplishing the obligations under
the assignment:
 IEC materials published
Resource Center.

by
PEFA
Secretariat
and
its
Other reports/documents produce by the PEFA Secretariat.
 Publications of FCGO.
8. Output:
The key output of the consulting service will be as follows:
 Research & study Report on the training need assessment of
PFM Staffs of GoN will be prepared.
9. Researcher / Consultant's Qualifications and
Experience:
The Researcher / Consultant should have the following
qualification and experience to carry out the assignment:
9.1 Academic Qualification:
 At
least
Master's
Degree
in
Management/
Economics/Finance/Public
Financial Management or
Development Management related Discipline.
7
 Advance study in Management/ Economics/Finance/Public
Financial Management or Development Management related
Discipline will be an extra advantage.
9.2 Experience
 General Experience: The consultant /PFM researcher /
research firm should have a minimum of 1 (one) year
experience in Government or Autonomous Agencies Sector
with good knowledge in the following areas (at least one): O
and M, Training, Administration and Financial Management.
 Specific Experience: Feasibility Study / Research in PFM
areas will be an extra advantage.
9.3 Special Requirement: Excellent IT knowledge; and
communication skills both in English and Nepali; proven skills in
project proposals/concept notes/reports writing and monitoring &
supervision of programs/projects.
10. Duration of Services:
 The service period of the consultant shall be for 45 (forty
five) days.
11. Reporting Requirements and Deliverables:
The consultant should report during or at the completion of the
assignment the following reports and deliver the following outputs
in hard copies (two in number) and soft copies within given time
schedule:
 Inception Report: The consultant should submit Inception
Report, relating to the study on the training need
assessment of PFM Staffs of GoN, covering the above
8
mentioned issues in detail, within one month after the date
of the signing the contract agreement.
 Draft Final Report: The consultant should also submit draft
final report, relating to the study on the training need
assessment of PFM Staffs of GoN, covering the above
mentioned issues in detail, within forty five days after the
date of the signing the contract agreement.

Final Report: The consultant should also submit final
report, relating to the study on the training need assessment
of PFM Staffs of GoN, covering the above mentioned issues
in detail, within two months after the date of the signing the
contract agreement.
9