National Consultant: Harmonized Approach to Cash Transfers (HACT)

Consultancy work for HACT based in Jakarta to conduct spot checks for IPs identified by the office, review and finalize micro assessment and scheduled audit reports conducted by UNICEF LTA, review and finalize spot check reports conducted by UNICEF LTA and roster and conduct training to build capacity of IPs in managing UNICEF fund as maybe required.

Title:   National Consultant: Harmonized Approach to Cash Transfers (HACT)
Type of Contract:  SSA (Special Service Agreement)
Duty Station:   Jakarta
Duration:   17 July 2017 until 16 June 2018 (120 working days)

Please indicate the expected monthly rate/ total lump sum fee in your application. Application without proposed fee may not be considered.

BACKGROUND
UNICEF and other United Nations Agencies use the United Nations Agencies Development Group (UNDG) Harmonized Approach to Cash Transfers (HACT) framework when transferring cash to implement projects. Based on this framework, UNICEF and other United Nations Agencies are required to assess new Implementing Partners (IPs) and to conduct spot checks on those IPs who have received direct cash transfer (DCT) to implement agreed projects. See the link here to obtain more information about HACT Framework

(https://undg.org/wp-content/uploads/2016/09/HACT-2014-UNDG-Framework-EN.pdf)

The HACT framework consists of four processes: (1) macro assessments and (2) micro assessments, (3) cash transfers and disbursements, and (4) assurance activities. Assurance activities include planning, periodic on-site reviews (spot checks), programmatic monitoring, scheduled audits and special audits.

This consultancy covers the following processes and activities: 1. Micro Assessment, 2. Spot Check, 3. Scheduled Audit.

Each is further explains below:

Micro Assessment
Purpose
The micro assessment assesses the IP’s financial management capacity (i.e. accounting, procurement, reporting, internal controls, etc.) to determine the overall risk rating and assurance activities. The risk rating, along with other available information, is also taken into consideration when selecting the appropriate cash transfer modality for an IP, based on each agency’s business model. This assessment applies to both governmental and non-governmental IPs.
The two primary outputs of the micro assessment are:
(a) An overall risk rating related to cash transfers to IPs (low, moderate, significant or high); and
(b) The appropriate type and frequency of assurance activities and cash transfer modality based on each agency’s business models.
The micro assessment is viewed as a component of the standard overall assessment of an IP, in addition to other available sources of information (e.g. history of engagement with the agency, previous audit reports, etc.).

Periodic On-site Reviews (Spot Checks)
Purpose
Periodic on-site reviews (spot checks) are performed to assess the accuracy of the financial records for cash transfers to the IP and the status of programme implementation (through a review of financial information), and to determine whether there have been any significant changes to internal controls. The spot check is not an audit.
Spot checks involve:
Checking the IP’s internal controls with respect to financial management, procurement and/or other controls required to implement the activities defined in the work plan; and
Reviewing a sample of expenditures to confirm that documentation supports the expenditures and that they are in accordance with the work plan and other United Nations regulations.
Spot checks are work plan or project based, meaning that for an IP implementing multiple work plans, a spot check is performed over FACE form(s) for each work plan, unless otherwise documented by the agency. The scope of work plans, and therefore the controls that are being relied on, may vary. For example, some may rely on the IP’s procurement controls and others on human resource controls.

Scheduled Audits
Purpose
A scheduled audit is used to determine whether the funds transferred to IPs were used for the appropriate purpose and in accordance with the work plan.

As one of the requirement of HACT Framework, UNICEF Indonesia develops the Assurance Plan to identify which IP that need to be assessed and are due for micro assessment, spot check and scheduled audit.  To be able to meet the targeted plan, UNICEF uses Global and Local Long Term Agreement (LTA) to conduct the Micro Assessment, Spot Checks and Scheduled Audit. 

In addition, for Spot Checks UNICEF also develop a roster from internal staff.

Based on this plan the field works were executed, the spot checks were started in May 2017 using internal roster. While Micro Assessments, Spot Checks that are to be conducted by the local and global LTA started in June.   As such the requirement for review and follow up of the HACT assurance activities is expected to increase.

The function to follow up, review and ensure timely completion of the reports produced from HACT assurance activities (Micro Assessment, Spot Check and Scheduled Audit) lies with Finance unit.   However, given the volume of work to be generated by the implementation of the assurance activities, there is a need to engage the services of a consultant to augment the current human resource capacity in finance for HACT-related activities as well as provide quality assurance in the timely review and finalization of the reports.  UNICEF ICO is seeking a consultant who has the expertise and experience with HACT to fulfil the gap.

WORK ASSIGNMENT
Under the supervision of Chief of Operations and work closely with PME and Finance Unit, the consultant is expected to perform the following major tasks:

1. Conduct spot checks for IPs identified by the office.
2. Review and finalize micro assessment and scheduled audit reports conducted by UNICEF LTA.
3. Review and finalize spot check reports conducted by UNICEF LTA and roster.
4. Conduct training to build capacity of IPs in managing UNICEF fund as maybe required.

The estimated number of spot checks and reports to be reviewed and finalized will be based on the monthly updated assurance plan.

Consultant will work for a total of 120 days (6 months) over an 11 month period (15 July 2017 to 14 June 2018).  The consultant will be compensated based on the actual number of work days which will be confirmed at the beginning of each month. 

IDEAL PROFILE OF THE CONSULTANT:
• Bachelor degree in accountancy or finance.
• Knowledge of HACT Framework.
• Prior experience conducting micro assessments.
• Prior experience conducting spot checks.
• Knowledge of PEDUM (General Guidelines on the implementation of the cooperation program between the Government of Indonesia and UNICEF) is an added value.

Disclaimer: The screening of your application will be conducted based on the information in your profile. Before applying, we strongly suggest that you review your profile to ensure accuracy and completeness.