MDTF-S MA TOR
Terms of Reference for the Monitoring Agent for the
Southern Sudan Multi Donor Trust Fund
1. Background
Following the signing of the Comprehensive Peace Agreement, in April 2005
development partners met in Oslo and pledged funds totalling US$4.5 billion for
the reconstruction and development of Sudan. Within the framework of a
decentralised system of governance, a portion of funds pledged (about US$551
million), have been allocated to finance pro-peace and development projects and
programs1 via the National Multi Donor Trust Fund (MDTF-N) and Southern
Sudan Multi Donor Trust Fund (MDTF-S).
The MDTF-N targets the war affected areas in northern states; where as the
MDTF-S is directed at the ten states of Southern Sudan. Recipients of MDTF-N
and MDTF-S funds include the Government of National Unity (GoNU) and
Government of Southern Sudan (GoSS)2 as lead agencies; UN agencies, NGOs,
private sector firms and civil society / community based organisations contracted by
Governments as sub-grant recipients; UN agencies and NGOs contracted directly by
the funds’ administrators as grant recipients in their own right. Recipients of
program funds will, among other things, be required to maintain an appropriate
financial management system.
Governance arrangements for both trust funds have been operational since
August 2005. In particular:

The MDTFs are administered through two Technical Secretariats,
one for each fund. Each Technical Secretariat (TS) is supported by
task teams comprising technical, fiduciary and safeguards
specialists. The TS works with the GoNU/GoSS and other
stakeholders to review project/program proposals and monitor
implementation progress;

Two Oversight Committees (OCs) with representatives from
GoSS/GoNU, development partners and the World Bank review and
1
As elaborated through the Joint Assessment Mission (JAM) which was comprised of the UN,
the World Bank, the Government of Sudan and the SPLM. The JAM document identifies eight
clusters: (1) institutional development and capacity building; (2) rule of law; (3) economic policy;
(4) productive sectors; (5) basic social services; (6) infrastructure; (7) livelihood and social
protection; and (8) information and technology. It also identifies four cross-cutting themes: (1)
environment; (2) conflict prevention; (3) HIV/AIDS; and (4) gender.
2 GoSS refers to the Government of South Sudan whose official creation was agreed in the
Power Sharing Agreement Protocol of May 26, 2004 in Naivasha, Kenya.
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approve project/program proposals; set guidelines for MDTF
operations; and agree resource ceilings.
As at the end of July 2007, the World Bank and Government/UN agencies had
signed grant agreements (GAs) for a total of 19 projects of which 7 and 12
are/will be financed by the MDTF-N and MDTF-S respectively. All of 19 projects
were effective (see Table 1). Furthermore as at July 31, 2007:

To enable some of the effective projects to be expanded,
supplemental FPPs were under preparation;

Under the MDTF-N four FPPs were under preparation namely: Blue
Nile start-up, livestock, agriculture and public service reform;

The FPP for the agriculture and forestry development project,
HIV/AIDs project and core fiduciary project for the states are at
various stages of preparation and will be due for submission to the
OC responsible for approval of Southern Sudan projects/programs
on completion.
Table 1: Effective projects as at 31 July 2007
MDTF-N financed
1. Technical Assistance Facility (TAF)
2. Community Development Fund (CDF)
3. Fifth National
Population Census
4. Capacity Building of the Judiciary
5. Decentralised Health
System Development Project (DHSDP)
6. National Emergency Transport
Rehabilitation Project (NETREP)
7. National Currency Project
MDTF-S financed
1. Rapid Impact Emergency Project (RIEP)
2. Sudan Emergency Transport and
Infrastructure Project (SETIDP)
3. Core Fiduciary Systems Support Project
4. Southern Sudan Health Umbrella
Program
5. Multi Donor Education Rehabilitation
Project
6. South Sudan Census Support Project
Phases I and II
7. Capacity Building, Institutional and
Human Resource Development
8. Rural Water and Sanitation Program
9. Police and Prisons Support Project
10. Livestock and Fisheries Development
Project
11. Private Sector Development Project
12. National Currency Project
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2. Assignment objectives
The MDTFs are accounted for separately from the World Bank’s own resources. To
this end, the Bank has agreed specific financial and administrative arrangements
with co-financing from bilateral and multi-lateral agencies, that ensure it manages
funds and supervises MDTF interventions in the same manner as it does with
respect to its own resources. These arrangements are specified in legally binding
administrative agreements entered into with participating development partners 3.
In order to ensure that contribution funds are utilised only for purposes specified
in administrative agreements, the World Bank will engage a suitably qualified and
experienced independent firm the Monitoring Agent (MA). In particular, the MA
will assist the World Bank to fulfil its fiduciary obligations with respect to
procurement and financial management. The GAs signed with the GoNU/GoSS
specify that the MA’s role will include the following:
“To monitor expenditures related to the activities financed under the Grant.
The responsibilities of the Monitoring Agent will include monitoring the
procurement of the goods, services and other items, screening and
recommending withdrawal applications for IDA’s approval and payment,
monitoring all expenditures financed under the Grant, and screening the
financial management capacity of the Recipient so as to ensure that the
proceeds of the Grant are disbursed only for the intended purposes and
according to applicable IDA procedures”.
3. Scope of services
The consultant must undertake all such activities necessary to meet the above
objectives and as explained below.
With regard to financial management (FM), the World Bank's policies require that
for each project there are adequate financial management arrangements (i.e.,
budgeting, accounting, internal control, funds flow, financial reporting, and
auditing arrangements) to ensure that proceeds of the grant are used for the
purposes intended. The World Bank's FM Manual, dated November 3, 2005
provides detailed guidance on the above areas. The consultant's work would be
guided by and adhere to the FM Manual's standards/requirements. For projects
under preparation, the consultant would review and comment to the World Bank
on the adequacy of the system and any actions that the project agencies need to
3
Contributors to one or both of the MDTFs include the: European Commission; Netherlands;
United Kingdom; Norway; Sweden; Canada; World Bank; Iceland; Greece; Germany; Finland;
Egypt, Italy, Spain, Arab League and Denmark,.
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further take. For projects under implementation, the consultant would review
and comment to the World Bank on the continuing adequacy of the FM system,
and any actions that the agencies need to take. The consultant would assist
the project agencies during project preparation and implementation to establish
and maintain adequate FM systems, including training of agency staff.
With regard to procurement the World Bank policies require that under Bank
financed Projects or whenever Bank procedures apply, procurement and
selection of consultants should follow the policies described under the Guidelines
for Procurement under IBRD Loans and IDA Credits (for goods, works and non
consulting services) and Guidelines for the selection and Employment of
Consultants by World Bank Borrowers. The MA will follow the Methodology
attached to these TORs, will assess the adequacy of the systems in place to
conduct procurement and test them through the detailed review of a set of
transactions and physical inspections. In light of this analysis, the consultant will
provide an opinion and recommend actions for the project agencies to improve
their systems and conduct procurement in accordance with the principles
established in the above mentioned Guidelines and captured in the Legal
agreements and procurement plans approved by the Bank
The consultant would consult with and coordinate closely with the World Bank's
Financial Management Specialists (FMSs) and Procurement Specialists (PSs) in
supporting the Bank's work. Before the beginning of each quarter of their work,
the consultant would prepare and agree with the concerned FMS and PS the
consultant’s specific planned activities for each project under preparation and
supervision, and the estimated usage of key consultant personnel’s time during
the quarter. This would ensure that the consultant's work does not duplicate, but
rather adds value in terms of enhanced supervision and preparation assistance
required in the Sudan context.
Activities include but will not be limited to the following:
a) Reviewing and commenting on project/program/entity financial
management procedures, to ensure that implementing agencies (including
states and counties in projects with decentralized entities) have put in
place adequate systems including opening relevant books of account,
systems of accounting, internal controls and reporting arrangements, and
providing training to make them ready for project implementation;
b) Carry out periodic review at decentralized locations to ensure that
procedures put in place are working as planned, support decentralized
staff to improve their FM and procurement systems and where appropriate
liaise with the Procurement Agent and Accounting Agent and the World
Bank to carry out training for such staff;
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c) Monitoring the status of compliance with legal covenants in respective
GAs – including compliance conditions for: effectiveness; disbursement;
withdrawal; reporting; audit etc. The MA will flag any exceptions identified
to enable the World Bank and GoSS/UN agencies to institute timely
corrective measures;
d) Review monthly or quarterly project/program progress reports and/or
financial Monitoring reports (FMRs) submitted by GoSS/UN agencies and
other implementing partners. Also review expenditures claimed under the
Statement of Expenditure (SOE) method and by implementing entities to
ensure their eligibility and that they are incurred for project purposes. With
respect to these (FMRs and SOE reviews) the MA is responsible for.:
i.
Agreeing opening and closing bank and cash balances to bank
statements (or reconciliations) and the previous month's FMR;
ii.
Tracing receipts during the month to approved WAs;
iii.
Verifying the accuracy of interest income earned on pooled
accounts;
iv.
Agreeing sample payments to supporting documents, ensure
expenditure/payments are authorised, eligible, conform with the
GA and are properly classified by component and expense
category (i.e. works, goods, consultants and operating costs);
v.
Ensuring the share of expenses between GoSS and MDTF-S
conform to GA;
vi.
Confirming the accuracy of bank reconciliations;
e) Undertaking physical monitoring on a sample basis as would be agreed
with Fund Manager or his designate. Physical monitoring activities will
include checking the quality of output, ensuring that works carried out and
goods supplied are to agreed specifications and quantities. Timely
notifying the beneficiary Ministry and other implementing agencies to take
immediate action to correct any identified errors;
f) Follow up on agreed recommendations and report on the extent of
compliance. In this regard, every quarter end, the MA will assist the TS in
ensuring that the output/results matrices for projects are appropriately
updated;
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g) Participating (at the request of the World Bank FMS) in World Bank-led
project/program appraisal and supervision missions. In addition, the MA is
expected to allocate time between missions following up issues arising
after or preceding each mission;
h) On a selective basis, at the World Bank Fund Manager’s request, carrying
out any special tasks relating to the project portfolio;
i) On the basis of a plan agreed with the World Bank’s Regional
Procurement Manager or his designate., conducting independent post
procurement reviews/audits of projects/programs on a sample basis. In
particular, the MA will review one in every five contracts on the basis of
size, nature, complexity, category of procurement, geographical location
etc. Reviews will among other things entail:
i. Determining whether adequate systems are in place for
procurement planning, implementation, and monitoring and
documents are maintained as per the required standards, and can
be relied on;
ii. Verifying the procurement processes and contracting procedures
and processes followed to confirm that they were carried out in
accordance with the GA and procurement plan;
iii. Checking compliance with the World Bank’s guiding principles of
economy, efficiency and equal opportunities;
i) Assessing technical compliance, physical completion, and price
competitiveness of each contract in the representative sample;
ii) Reviewing the capacity of implementing agencies/units in handling
procurement efficiently;
iii) Commenting on the quality of procurement and contracting; and
identify reasons for delays, if any;
j) Undertaking special monitoring activities at the request of the World Bank
which take stock of financial management, procurement, project
administration and other issues adversely affecting project/program
implementation;
k) Providing advice on what needs to be done to remove bottlenecks,
including but not limited to the provision of assistance to government
institutions, including project implementation units, in the resolution of
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implementation problems in the areas of FM, procurement and contract
management;
l) Validating and discussing the findings of the activities above with the
agency responsible for project/program implementation and the
representatives from the TS to determine any corrective actions required,
identify the relevant action officers, and agree corresponding targets dates
for their resolution;
m) Supporting Bank specialist teams to run financial management and
procurement capacity building workshops for project/program
beneficiaries.
It is worth drawing attention to the fact that under the Sudan MDTF, UN agencies
are permitted to follow their own procedures. Procurement decisions under UN
executed contracts for projects under MDTF South are not subject to Bank
review.
Regardless of how UN agencies are contracted under the Sudan MDTF (i.e.
direct grant agreements between the WB and UN agencies or subsidiary
agreements between the Government of Sudan and UN agencies), the MA's role
will be limited to (i) checking and commenting on the implementation reports
prepared by the UN agencies; and (ii) physical verification (i.e. performance
audits) on a sample basis.
4. Outputs and reporting
The MA will report directly to the relevant MDTF Administrator. The Bank will
inform the OC and development partners of changes in the terms of reference of
the work of the MA. Upon completion of the activities financed under the MDTF,
an independent review of the performance of the MA will be conducted and
report of its findings provided to development partners.
Reports and other outputs by the MA will include, but not limited to, the following
(see Table 2):
Table 2: Summary of reports and outputs by the MA:
Report/ output
Submission date
Memo on review of each FMR and SOE
2-3 days of receipt of FMR / SOE
Procurement review/ audit report
5 days of completion of review
Field visit report
5 days of completion of field visit
Monthly financial report
15 days following end of the month
Quarterly Executive Summary
15 days following end of quarter
Quarterly progress report
Draft to TTLs 30 days following end of
quarter; 5 days for review by TTLs; and final
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report 40 days following the end of the
quarter
To be agreed for every report requested
Ad-hoc reports
a) Report on independent review of financial monitoring Reports (FMR) and
Statement of Expenditures (SOE) carried out by the MA, a memo to the
MDTF Administrator which documents procedures performed, findings
and recommendations;
b) Reports of independent procurement reviews/audits (annual or ad hoc as
needed) detailing quality of systems in place, successes and deficiencies
any associated recommendations to remedy the deficiencies.
Recommendations should also extend to cover: pending actions from
previous post procurement reviews; the need to revisit current prior review
thresholds upwards or downwards; possible improvements in the project
procurement processes in the light of deficiencies. The MA must adhere to
the methodology (including the templates) provided by the Regional
Procurement Manager or his designated staff responsible for Sudan;
c) On return from every field visit a summary report to feedback findings;
d) Monthly reports summarising disbursements to each project, a
consolidated expenditure statement for the entire portfolio, and any key
issues arising during the month;
e) Quarterly reports which summarizes (and addresses any feedback
received) the results of the MA’s activities specified above. The Aidememoires and reports of the World Bank task teams will be used by the
MA in preparing this report. A draft will be provided to the respective Task
Team Leaders (TTLs) for their comments (comments due in 5 working
days), and thereafter the MA would submit a final report. To ensure
timeliness of feedback, the MA will submit an executive summary within
15 days following the end of a quarter covering:
i. Flow of funds during the quarter
ii. Overall progress
iii. Key issues arising
f) The framework of the report shall be the monitoring of progress of the
project as a whole and various project components against the overall
plan and project procurement plans, with clear statements as to the
achievements (including any quality assurance findings), the actual
quantified slippage against plans, the reasons for the slippage, the actions
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being taken to address the slippage and the comments/recommendations
of the Monitoring Agent
Full quarterly progress report will be submitted within 30 days after end of
quarter. In addition to feedback on results of MA’s activities and all the
topics described under the framework, the report must contain:
o Details of the overall operations under the MDTF for the period,
including expenditures reimbursed, the status of WAs in
process, status of the utilisation of funds deposited in
project/program special accounts, eligible and ineligible
expenditures claims along with detailed explanations for
ineligible expenditures;
o Any systemic implementation issues identified and specific
recommendations on how they can be addressed;
o Summary of key legal covenants and extent of compliance;
o The ratings each project’s performance;
o A risk assessment, recommended mitigating actions and status
at the end of the quarter.
In addition, there will be a monthly or quarterly face to face meeting with the MA
for presentation of the issues, trends and ways forward.
The consultant's report would provide sufficient and detailed analysis on any
problems highlighted as to enable suitable corrective measures to be identified
5. Host government undertaking
The GoSS shall facilitate the Bank and the MA’s ready access to all relevant
personnel, records and accounts of the GoSS related to the utilisation of the
resources of the South Sudan MDTF.
6. Qualifications of the MA’s team
The MA will form a team as they see fit. However, it is expected that the team
composition will include members with the following competencies, levels of
expertise and exposure:
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
The overall team leader should be a professionally qualified and
experienced individual in the area of financial management or
procurement. He/she should have a minimum of five years post
qualification experience. Previous leadership of multi-disciplinary
teams as team leader is essential;

Financial management specialists/monitoring team members
must be professionally qualified accountants and/or hold equivalent
degrees in public finance or economics. Previous experience of
undertaking monitoring in the field and managing a database for
analysing data is an advantage;

Procurement specialists should possess practical experience of
World Bank4 and government procurement guidelines/regulations
(including using independent judgment in interpreting them), be
professionally qualified, hold at least a Masters degree (e.g. in
engineering), and have previous procurement audit experience in a
public sector environment;

Engineers should be professionally qualified and have extensive
experience of overseeing/monitoring the construction of works (e.g.
buildings, sewage systems, roads etc.);

Team members should have experience in similar countries and
under conditions like those prevailing in Sudan. The ability to speak
local languages is an advantage.
As noted earlier, the estimated usage of each team member’s time will be agreed
with the FMS and PS before the beginning of each quarter. Timesheets of actual
work performed by project will be provided along with the MA’s invoices.
Conflict of interest
Firms interested in this assignment should not have any existing or future conflict
of interest arising from their being involved in supporting the budget execution
process of the GoNU/GoSS. Firms responding the invitation should provide an
undertaking that they would not be involved in such conflict of interest during the
term of the contract, or such period thereafter as may be mutually agreed to
between the World Bank and the MA.
4
"Guidelines for Procurement under IBRD Loans and IDA Credits" and the "Guidelines for the
Use of Consultants by World Bank Borrowers and by the World Bank as Executing Agency", as in
effect at the date of the relevant Sub-grant agreement (hereinafter collectively referred to as the
"Bank’s Guidelines").
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Attachment:
Procurement Methodology and template for reporting;
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