Minsitry of Finance Budget Adviser Deadline 24 October 2008

REPÚBLICA DEMOCRÁTICA DE TIMOR-LESTE

MINISTÉRIO DAS FINANÇAS

PLANNING AND FINANCIAL MANAGEMENT CAPACITY BUILDING PROGRAM

Terms of Reference

Job Title: Budget Adviser (2)

Reporting to: Director, Budget Directorate
Senior Management Advisor, Program Services Branch

Counterpart staff: Manager Budget Coordination

Duration: Twelve months, with the possibility of a renewal based on satisfactory performance and continuing need of the Program

Location: Ministry of Finance, Dili – Timor Leste

I. BACKGROUND

Planning and Finance Management Systems in Timor-Leste

Since the restoration of independence in 2002, the Government of Timor-Leste (GoTL) has made steady progress in building its Planning and Finance Management (PFM) systems, but significant challenges remain. Institutions responsible for planning, budgeting, budget execution, revenue collection, internal control and reporting are particularly weak in a context of rapidly accumulating revenues and expansion of the state budget. The PFM system is characterized by extremely low budget execution on a cash basis, caused by low capacity within the civil service and weaknesses in planning, budgeting, procurement, implementation and project management. Progress to convert existing resources into economic growth and tangible service delivery improvements is slow.

Strengthening PFM in any country is a long-term agenda. Sound PFM requires government wide systems and processes that operate in a fully integrated manner; weak links must be addressed in a systematic manner. Areas requiring immediate attention include:

- Linking planning and budgeting
- Reform of procurement and devolution to the line agencies
- Improving cash planning and cash management to prevent excessive Treasury liquidity
- Strengthening core IT systems to support the budget process
- Improving internal and external controls and monitoring
- Implementation of a comprehensive program of capacity building and professional development for civil servants including delivery of incentive and reward reforms.

The GoTL is conscious of the key role of PFM systems for growth, service delivery and poverty reduction, and has commenced implementation of a Planning and Finance Management Capacity Building Program (PFMCBP) to assist to secure these objectives.

The Planning and Financial Management Capacity Building Program

The PFMCBP aims to achieve sustainably strengthened planning, budgeting, public expenditure management and revenue administration for growth and poverty reduction, with emphasis on efficiency, effectiveness, accountability, integrity, service culture, and transparency.

Funded through a World Bank multi-donor trust fund, the PFMCBP is a five year coordinated program of targeted capacity building in planning and financial management. The key GoTL implementing agency is the Ministry of Finance (MoF), but PFMCBP also includes support for financial management staff in the line ministries and districts. The program comprises four major components, encompassing: (a) public expenditure management; (b) revenue administration and macro-economic management; (c) support for executive management and other cross cutting activities; and (d) support for program implementation.

Early capacity building initiatives in the MoF focused largely on getting the public financial management system up and running without fully addressing the capacity shortfalls of civil servants.

This has created a system that remains heavily reliant on the presence of international advisers, who have largely focused on in-line performance and, to a limited extent, on the transfer of skills.

Through PFMCBP the GoTL wants to move beyond the transitional substitution of international for local expertise, to an integrated approach to institution building that relies on three pillars: skills and knowledge; systems and processes; and attitudes and behaviours. Based on the three-pillar framework, the objectives for the PFM function are (i) improved service delivery, both to internal clients and to the population; and (ii) to create a sustainable PFM system that would be increasingly managed and run by national staff, with the number of advisers decreasing over time as national staff take on increasing responsibility. To achieve this, the Program has adopted a “platform” approach under which first steps and foundations are consolidated before more advanced steps are attempted.

PFMCBP faces two central challenges in the near term. The first challenge will be to creatively and flexibly support elaboration and implementation of the change management strategy by the RWG, task teams and senior management team. It will take time to define and communicate elements of the change process: it must not proceed too quickly, or according to a technical blueprint. The second challenge will be to ensure the program does not lose focus on the pressing need to improve the Ministry’s core public finance management responsibilities and maintain operations. Government capacity is already limited and there is a risk that dramatic changes may divert focus. PFMCBP should target activities that improve service delivery, support economy and employment outcomes, and underpin government’s efforts to establish its legitimacy.

Program Management

The program is managed and implemented by the MoF through a dedicated Program Implementation Unit (PIU), led by the Program Implementation Officer (PIO). Comprising a core group of TA management specialists, the PIU ensures best practice capacity building efforts throughout the program. The PIU is located within the Aid Effectiveness Secretariat of the Ministry of Finance, and is designated part responsible for supporting the aid effectiveness function of the MoF, together with associated PIUs lodged in the Ministry.

A Steering Committee chaired by the Minister of Finance and involving senior managers, key line agencies and district representatives as appropriate will provide the strategic direction for the program and ensuring that the program progresses in line with the Government’s development and public financial management objectives.

A Supervisory Committee Chaired by the Minister of Finance and comprising the World Bank and one or more development partners will monitor progress in program implementation and make recommendations to the Steering Committee on issues affecting the successful achievement of the program’s objectives. The Supervision Committee will provide a forum for continuous policy dialogue and will oversee and advice on the integration of all activities and advisers within the program framework, including coordination and consultation with donors involved in parallel financing and co-financing

All Technical Advisers recruited to the PFMCBP are contracted by, and accountable to, the Minister of Finance. Senior Management Advisors will be responsible for planning and monitoring the quality of performance of TA assigned to their respective branches and units.

Ministry of Finance Reform

The Ministry of Finance is the Government body responsible for the design, execution, coordination and assessment of the finance policies defined and approved by the Council of Ministers, particularly in the areas of budget and finance, and the Government’s annual planning and monitoring of their programs.

In 2008, the Ministry of Finance has commenced a process for institutional reform that aims to improve the quality of services the Ministry provides to policy-makers, line ministries and districts. A restructure of the Ministry and drafting of new Organic Law are underway, providing some of the conditions necessary to improve performance, in particular at senior management level. Plans are also underway to: establish a group of experienced managers; address issues of staff reward and incentives; review skills and proper job placement of existing staff; preparation of a program for the professional development (PDP) of ministry staff; systematically communicate planned changes to existing Ministry staff; and improve the Ministry’s facilities, IT and other related infrastructure. As an initial step in this restructuring process, a Senior Management team has been established to transmit reform messages and lead performance improvements within the Ministry. The team is composed of the Minister, the Chief of Staff, the Directors (yet to be appointed) and their Senior Advisers, as the case may be, of the four (4) major proposed management modules (branches) in the Ministry, including: i) Program Services ; ii) Revenue Services ; iii) Policy Analysis and Research Services; iv) Corporate Services. The Senior Management Advisory Team provides counterparts to the Senior Managers.

II. ROLE OF THE BUDGET DIRECTORATE UNDER THE PROGRAM SERVICES BRANCH

The National Directorate of Budget is responsible for the coordination, preparation, monitoring and up-dating of the Annual Budget of the State. Among others, the Directorate performs the following functions:

• Coordinate, supervise, consolidate and prepare the draft Budget and corresponding draft annual Appropriation Law on behalf of the MOF, for consideration by the Council of Ministers

• Establish necessary procedures for Budget preparation, review, alteration and updating

• Coordinate and prepare Budget updates and alterations to the annual State Budget law

• Participate in the preparation of the Government Budget

• Follow-up and asses the budget’s physical and financial execution and ensuring accountability, transparency and sustainability of public finances

• Analyze, propose and give advice to the Minister of Financen on any budget alterations that must be pursued

• Collect and develop financial information according to the current needs of Government and disseminate them to all concerned stakeholders

• Analyze and provide advice on proposals that may have budgetary and financial implications to the Minister of Finance

• Provide support to line ministries and agencies of the Government, including other specialized entities of the State in order to familiarize them with the budget processes

• Contribute to the preparation and draft legislation and regulations aimed at the budget control and monitoring, as well as the preparation of outcomes statement in the safeguard of public spending

• Develop the budget process and suggest guidance for the budget policy operation

III. OBJECTIVES OF THE ASSIGNMENT

The Budget Adviser will work closely with his/her counterpart, the Manager of Budget Coordination, in the National Directorate of Budget. Activities will involve a mixture of capacity building efforts and capacity support (operational activities) to contribute towards the development of a sustainable budget process with a sound policy basis and transparent documentation. This will include building the capacity of staff to manage the budget process (including the budget related outputs of line-ministries) but will also require, from time to time, the provision of capacity support in the actual day to day operations.

IV. DUTIES AND RESPONSIBILITIES

A. Core tasks

With counterparts, manage the day to day operations of Budget Unit:

• Build the capacity in local staff to produce appropriate budget outputs, including the preparation, management and execution of an accurate and timely Budget

• Build up the capacity of local staff to oversee the management of line Ministry budgets and build the capacity of the team to work closely with other areas of the Ministry in providing an integrated approach to line Ministries

• Simplify budget systems for budget office and line agencies and assist with the integration of the MoF services to Line Ministries in the areas of budgeting, planning, treasury functions and procurement

• Develop user friendly documentation outlining systems and processes in English (translated into local languages Portugal and Tetun) in particular revise the existing budget manual

• Assist National Budget Directorate Office staff to provide advice to the GoTL on portfolio budget issues

• Contribute to the development of a robust planning and budgeting system, while working
towards the alignment and synchronisation of planning and budgeting processes

• Support Budget Office staff to strengthen relationships between Budget Office and line ministries including facilitating regular consultation between stakeholders on Budget process and feedback sessions on Budget outcomes and execution data

• In consultation with the Professional Development Program director, identify training needs for staff in the National Directorate of the Budget and Planning and develop strategies to secure the necessary skills needed to ensure the long term viability of the National Budget Directorate

• Perform such other technical and inline functions as may be required by the Program Services Directorate or the Ministry of Finance.

B. Capacity building functions

The Adviser will be expected to incorporate the three pillar approach to capacity building in all aspects of his/her work with Timorese counterparts. The Adviser shall model transparency and accountability in his/her own behavior, and by focusing on development of skills and systems, together with support to behavioral and attitudinal change, the adviser shall help to build capacity:

• Jointly with the Program Implementation Officer and the Adviser HR & Capacity Building, develop an agreed capacity building workplan (based on the Adviser’s own workplan), to incorporate operational activities and capacity building into the core specific activities to be undertaken. Regularly review and revise the workplan;

• Agree on specific tasks within activities for which national counterparts will be responsible; agree on methodology and monitorable indicators for assessing progress on agreed tasks, and for providing feedback to staff;

• Increase, incrementally, the level and number of tasks for which national incumbents are responsible, commensurate with progress/improvements in technical and functional capabilities.

C. Deliverables

Within the first three (3) weeks of the assignment, the Adviser shall prepare a Workplan based on the objectives of the assignment and specific functions for approval by the Director – Budget Directorate prior to implementation, copy furnished to the Program Services Director and the PIOPFMCBP.

Within the first six (6) weeks of the assignment, the advisor shall prepare a capacity building workplan, as outlined above. This will be prepared in consultation with human resource development staff and specialist advisers in the ministry.

The Adviser shall then provide a duly endorsed monthly Workplan Progress Report to the Director Budget Directorate; copy furnished to the PIO-PFMCBP, on the progress and /or completion of the activities outlined in the Work Plan.

The Adviser shall discuss and submit to the Budget Director, no later than five (5) working days
before the end of the current contract, an end of assignment Workplan Progress Report summarizing work undertaken against the Workplan, the degree to which the work has concluded, and a statement of outstanding tasks.

In addition, the Adviser shall be required to deliver the following:

• Weekly progress report on the closure of carryover liabilities.

• Reports and memoranda recommending required actions (including legal action)

V. QUALIFICATIONS AND COMPETENCIES

These competancies shall also form the basis of the selection criteria.

Education

Bachelor’s or master’s degree from a recognized institution in a field relevant to the position or equivalent work experience in the relevant field.

Experience

Experience in working in developing country Government Budget division is essential.

Other Qualities /Competencies

• At least five years experience in a public financial work environment, within a central agency a Treasury or Budget Unit.

• Ability to work with national staff to build cooperative and productive team and individual relationships (with national staff and other advisors), incorporating capacity building approaches.

• Excellent oral and written communications and with good command of the English language. Fluency to communicate both verbally and written in Tetum and/or Portuguese would be an advantage. Willingness to undertake further language training in at least one of the two.

Capacity Building Competencies and Experiences

The Adviser should be familiar with the principles and techniques involved with adult learning, and understand capacity building methodologies. The adviser must posess excellent oral and written communication skills and be experienced in designing and providing on-the-job training. The adviser should be able to demonstrate experience in developing and delivering outcomes based capacity building activities, from the needs analysis stage through to execution, evaluation and analysis of ongoing support requirements.

In addition:

• A commitment to supporting Timorese staff to achieve the outcomes and objectives of the Ministry;

• Committed to training and promoting the professional development of the Ministry’s staff;

• Recognition and respect of peers, and a demonstrated ability to interact effectively and collegially with peers at all levels;

• Demonstrated ability to make sound judgments on capacity issues that will require management referral and guidance;

• Demonstrated ability to work effectively in a mentoring role;

• Demonstrated ability to communicate ideas and analyses clearly and tactfully, both orally and in writing;

• Demonstrated ability to assist and support the development of useful processes and procedures within the unit to implement effectively the work program;

• Demonstrated ability to transfer skills and knowledge – previous training or teaching experience a plus;

• Demonstrated ability to adapt to challenges in the workplace, including finding creative solutions; and,

• Familiarity with Timor-Leste and Timorese culture and/or willingness to acquire it.

VI. PERFORMANCE EVALUATION

Ongoing performance shall be assessed by the Programme Implementation Unit (PIU) in accordance with the functions and agreed deliverables in the TOR and performance review framework for advisors; and be subject to inputs and recommendations from the Steering and Supervisory Committees, joint supervision missions and the World Bank Task Team as appropriate. This position is subject to performance evaluations every six (6) months to ensure satisfactory progress in the implementation of the functions of the position.

Satisfactory execution of the indicated technical and capacity building functions mentioned above consistent with the Program’s objectives as evaluated by a Supervisory Review Committee at the end of the engagement. Where a contract extension is required, performance assessment results will be taken into consideration.

VII. SELECTION CRITERIA to be addressed in the application

1. Bachelor’s or master’s degree in a field relevant to the position or equivalent work
experience of at least 5 years in the relevant field

2. Experience in working in a developing country, preferrably Timor Leste, Pacific or Asia in a
government budget division

3. Proven operational experience in managing the budget cycle including the alignment of planning and budgeting processes and the development of user-friendly documentation

4. Significant experience in the alignment and implementation process of budgets across line agencies

5. Demonstrated ability to plan and conduct capacity building strategies for staff including adult learning methodologies for the transfer of skills and knowledge

6. Proven track record in the development of strategies, processes and plans to improve operational effectiveness

7. Proven ability to approach problem solving in a culturally sensitive manner to ensure cooperation, owenership and acceptance

8. Language Requirements:

Fluency in English Essential
Fluency Tetum and/or Portuguese Desirable

APPLICATION PROCEDURE

Please visit our website at www.mof.gov.tl/ to learn about our recruitment process and your application
requirements.

Applications need to be sent to our Programme Implementation Officer-PFMCBP at email address,
pfmcbp@mof.gov.tl, no later than 17:00hours Timor-Leste time on 24 October 2008.

Only short-listed candidates will be contacted. Please note that applications received after the
deadline will not be considered.