Finance Department
Provincial Program Support Office, DSP
Specific Objectives
Provide support to Finance Department in developing systems and capacity of LFA department to
enable it to perform functions as per PLGO 2001
Orient LFA department to the new audit paradigm and provide necessary support for changing
over to the new regime.
Suggest options for short, medium and long-term capacity development of LFA department
Key Deliverables:
Institutional Situation Analysis Report
Training Needs Assessment Report
Draft module
Report of pre-testing workshop
Finalized module
Reports of training workshop
AWP 2005 1
Government of the Punjab
Finance Department
Provincial Program Support Office, DSP
A. Project Information
1 Overview
(2 pages) Provide situation analysis (background), justification and broad scope of the TIP
Background
Under the provisions of Government of India Act 1935 and rules made there under, the audit of
accounts of local funds and public and quasi public bodies were devolved upon the provincial
governments. Since the provincial governments had no audit agency of there own at that time,
the audit of the accounts of local bodies was entrusted by the provincial governments to the
Auditor General of India on consent basis. In 1944, however, the entire control of the Local Fund
Audit Department was transferred back to the provincial governments. Audit fees were recovered
from the auditees and credited into the provincial exchequer. On the dissolution of one unit in
1970, the Department of Local Fund Audit (Punjab) was established under the administrative
control of the Finance Department of the Provincial Government of Punjab.
As per the Government of the Punjab Rules of Business, 1974, Local Fund Audit (LFA)
Department is an Attached Department of the Finance Department, Punjab, which conducts
various kinds of audit i.e. pre-audit, post-audit and special audit of local councils, provincial
autonomous bodies, educational institutions, universities and miscellaneous funds in accordance
with the specific provisions of various enactments and provisions of the local government
ordinance and other laws for the time being in force in the Punjab and reports to the government
with reference to the auditee departments’ financial control, management and disciplines. Under
the Punjab Local Government Ordinance 2001 LFA continues to conduct pre and post audit of
the TMAs and Unions.
Following the promulgation of PLGO 2001, this Department has posted Resident Auditors in the
Tehsil/Town Municipal Administrations throughout the province. Circle audit parties are also
constituted for annual audit of those auditees having small volumes of budget.
Justification
The principles laid down in the Punjab Local Councils (Audit) Rules 1981 saved under Section
196 of Local Government Ordinance 2001 provide guidelines, object and purpose of audit of
Town/Tehsil Municipal Administration and Union Administration and initiation of action on the
findings and recommendations of audit carried out by the staff of Local Fund Audit Department.
Given the existing situation and need for higher level of skills in LFA to provide audit assurance
not only for TMAs but other provincial bodies, an institutional assessment of the Local Fund Audit
department needs to be undertaken to study the role played by them at the Tehsil and Town
Municipal Administration and Union Administration level and to determine how well they have
delivered. Additionally, to determine that how can their working and performance be improved.
Reasons for inefficiency and ineffectiveness (if any) of the audit function need to be determined
and addressed. At the same time it is important to see if there are any capacity gaps that should
be filled. For example, are accounts being kept properly at these levels? How many TMAs are
being audited annually? Is independence of the audit function being observed? Is audit effective?
AWP 2005 2
Government of the Punjab
Finance Department
Provincial Program Support Office, DSP
Whom should audit be accountable to? Is the cadre of auditors professional compared with other
audit cadres? What is the role of the Accounts Committees in the changed scenario? Are they
functional? Do provinces provide local audit reports to the local councils in accordance with
PLGO 2001? How aware are the local citizens about the issues addressed in audit reports? The
institutional assessment will provide insights into the role of LFA with regard to access to
information.
The proposed TIP falls under DSP thematic area “Audit”. Options need to be studied over the
short, medium, and long term scenarios. This is specially so because their requirements over the
short term seem to be pegged in the legacy system already working there. Over the short term
therefore, it is envisaged that the TIP will assess and augment the existing capacities and system
in vogue in the Tehsil/Town and Union levels. However, the medium term period will be the
transition phase whereby LFA will be, in a phased way shifting towards the new audit paradigm.
In the long term their user requirements will be as per the holistic integrated budget and financial
accounting model and its auditing which might evolve in accordance with international practice
and learning. Their capacity needs will likewise be assessed vis-à-vis the timeframe under
consideration. Short and Long-term benefits would have a bearing on improvement in service
delivery.
Proposed Intervention:
With the implementation of decentralization through the promulgation of PLGO, 2001 a paradigm
shift has taken place in the way local governments have been organized in this country. The
functioning and organization of LFA Department has not yet been rationalized to meet the new
demands and challenges. The capacity of LFA department to carry out their function effectively in
the new system needs to be addressed. Additionally, to help them align their audit methodology
to match the changing paradigms accepted and practiced in the world and increasingly being
adopted by the Auditor General of Pakistan is the need of the hour. Their working need to be
upgraded and updated to help them transform to effectively adapt to the changing scenario, and
be able to perform a useful role under the new system whereby modified cash accounting and
computer assisted auditing techniques are being introduced.
Specific Objectives
Provide support to Finance Department in developing systems and capacity of LFA
department to enable it to perform functions as per PLGO 2001
Orient LFA department to the new audit paradigm and provide necessary support for
changing over to the new regime.
Suggest options for short, medium and long-term capacity development of LFA department
Outcomes:
AWP 2005 3
Government of the Punjab
Finance Department
Provincial Program Support Office, DSP
Improved auditing function at TMA/Union level in accordance with the new audit paradigm
and international best practices
LFA fully capacitated to conduct effective audit at TMA and union levels
Enhanced accountability and transparency at local level
Improved service delivery at TMA and union level
Deliverables
Institutional Situation Analysis Report
Training Needs Assessment Report
Draft module
Report of pre-testing workshop
Finalized module
Reports of training workshop
(1 page – table)
3 Beneficiaries
(0.5 page) Describe who and how many will be involved:
Total number:
The institutional analysis will be done by involving officers of Finance and LFA Departments. The
capacity building of LFA will target the following officers:
Designation Number
Divisional Directors 10
Assistant Directors 31
Auditors 190
Audit Officers 69
Total 300
4 Implementation Methodology
(2 pages) Describe how the outcomes/deliverables will be achieved focusing on a clear
description of the key activities and the features of implementation without providing fine detail of
every step. Leave room for the consultant firm to formulate.
AWP 2005 4
Government of the Punjab
Finance Department
Provincial Program Support Office, DSP
As per directions of NPSC the office of the Accountant General will be associated in the
implementation of this TIP. An individual consultant will be hired to carry out the situation
analysis, which will include but not limited to the following:
The analysis may include focus group discussions, personal interviews, sample surveys,
meetings etc. The consultant will finalize the methodology in consultation with the PSO. The
report of the consultant will give an assessment of the situation as it exists on the ground, and
provide recommendations for improving the working and functioning of LFA Department under
the PLGO, 2001.
The Training Needs Assessment report will form the basis for development of training modules’
for the select target audience. A training methodology will be firmed up along with a training
monitoring mechanism. For the purpose of costing 20 participants have been considered.
Training Module
The training module will be developed by a team of experts on public sector auditing and capacity
development specialists in consultation with the Provincial DG (Local Audit). The areas to be
covered in the module will be identified on the basis of TNA. However, some of the indicative
areas are given below:
1. LG System as it exists under PLGO, 2001 with special focus on TMAs and UAs
2. LG Accounting System with special reference to PIFRA, NAM and new CoA
3. Treasury and Sub-Treasury Rules
4. Budget Rules 2003
5. PFR Vol.–I
6. Purchase Manual
7. Works Rules
8. DFR (Dept. Financial Rules)
9. Accounts Code Vol. – III
10. Pay and Pension Rules
Team Leader will submit an indicative list of subjects to the PSO for approval. The module will be
designed keeping in view the international best practices of experiential learning and principles of
androgogy. The focus of the module must be on case studies, practical exercises, group work
and discussions and less emphasis on lecturing, so that the participants are able to assimilate
better, and can put the knowledge gained to practice in their places of work. The staff of LFA will
not only be trained in the areas for which modules’ have been developed, but also in on-job
learning techniques.
AWP 2005 5
Government of the Punjab
Finance Department
Provincial Program Support Office, DSP
The Capacity Development Specialist will prepare and add trainers’ notes to the module to assist
trainers in conducting their trainings.
Services of resource persons may be hired for the development of this module as it involves a
highly technical subject.
Pretesting of Module
The training modules will be pre-tested by the Consultant on a sample population. The pretesting
will also involve officers from Finance and LFA departments. For costing of activities 15 officers
will be invited to the workshop. The consultant will suggest alternate methodologies for pre-
testing of module to the PSO.
Finalization of Module
The module will be finalized by the consultants on the basis of feedback from the pretesting
workshop and hard and soft copies will be submitted to PSO.
Printing of Module
The printing of module will be carried out by the PSO through a separate contract. The PSO will
provide detailed specification of the printing job. A total of 500 copies of modules will be printed.
Separate cost provision has been made for the purpose.
Monitoring Mechanism
A monitoring framework for TIP will also be prepared and submitted to the PSO for approval. This
format will be used by the PSO / ADTA for monitoring different activities of the TIP. Monitoring
will be done by M&E staff of PSO and Effectiveness Evaluation Assistants of ADTA.
A Training Specialist may be hired separately as a Resource Person from the market to monitor
the quality of training being imparted keeping in line with the monitoring mechanism developed.
Cost for the purpose has been provided in the TIP.
AWP 2005 6
Government of the Punjab
Finance Department
Provincial Program Support Office, DSP
(1 page – table)
Outcomes
Improved auditing function at TMA/Union level in accordance with the new audit paradigm
and international best practices
LFA fully capacitated to conduct effective audit at TMA and Union levels
Enhanced accountability and transparency at local level
Improved service delivery at TMA and union level
Indicator
The detailed implementation arrangement is provided under item 4 above. The following
additional points are given below.
AWP 2005 7
Government of the Punjab
Finance Department
Provincial Program Support Office, DSP
Coordinate with PPSO, Finance and LFA departments during the implementation of the TIP.
Supervise and guide the capacity development specialist in conducting the TNA based on institutional
situation analysis
Undertake the development of Training Module with the assistance of other consultants
Supervise the pretesting of the module
Supervise and conduct the 12 Training Workshops of LFA department in accordance with a schedule
finalized in consultation with PSO and LFA department
Any other related task assigned by the PSO
Deliverables
i. Inception Report
ii. Draft Report on Institutional Analysis of LFA department
iii. Final Report on Institutional Analysis of LFA department
iv. Training Need Assessment Report
v. Draft Module for Training of LFA officers
vi. Report of Pre-testing of Module Workshop
vii. Finalized module
viii. Schedule of Training Workshops for LFA Department
ix. M&E framework for monitoring the trainings
x. Report of Training Workshops
xi. End of Project Report
Requirements
i. At least a Master degree holder in social sciences or MBA / MPA degree holder.
ii. At least 8 years experience of conducting similar activities.
iii. Good knowledge of public sector organizations in Pakistan preferably Local Fund Audit Department
iv. Strong demonstrable organization, management and conflict resolution skills.
v. Excellent communication skills.
AWP 2005 8
Government of the Punjab
Finance Department
Provincial Program Support Office, DSP
Assist the capacity development specialist in conducting the TNA based on institutional situation
analysis
Develop Training Module with the assistance of Capacity Development Specialist
Pre-test the Training Module on a sample of officers
Submit finalized module on CD Rom to PSO
Conduct 12 Training Workshops of LFA department with the assistance of Capacity Development
Specialist
Any other related task assigned by the PSO
Deliverables
i. Inception Report
ii. Draft Report on Institutional Analysis of LFA department
iii. Draft Module for Training of LFA officers
iv. Finalized module
v. M&E framework for monitoring the trainings
vi. Report of Training Workshops
Requirements
i. At least a Master degree holder in social sciences or MBA / MPA degree holder.
ii. At least 5 years experience of conducting similar activities.
iii. Good knowledge of public sector organizations in Pakistan preferably Local Fund Audit Department
iv. Strong demonstrable organization, management and conflict resolution skills.
v. Excellent communication skills.
Responsibilities
i. Assist the Team Leader in undertaking the assignment, and ensuring that the deliverables are of
specified quality.
ii. Suggest a methodology for conducting TNA
iii. Conduct Training Needs Assessment on the basis of Institutional Assessment of LFA department.
iv. Prepare a list of topics / areas for inclusion in the training module
v. Suggest different training methodologies for conducting trainings of LFA department officers
vi. Develop Training Module for LFA department officers
vii. Pre-test the Training Module on a sample of officers from LFA department
viii. Finalize the training module based on the input received from the pre-testing
ix. Train the Trainer on Training module
x. Conduct Trainings of LFA officers with the assistance of other consultants
xi. Prepare report of each workshop
xii. Develop an M&E framework for training workshops
AWP 2005 9
Government of the Punjab
Finance Department
Provincial Program Support Office, DSP
xiii. Any other task assigned by the PSO for meeting the objectives of this assignment
Deliverables
i. Report on methodology of conducting TNA of LFA department
ii. Training Need Assessment Report
iii. Outline of Training Module
iv. Draft Training Module
v. Report of Pretesting workshop
vi. Finalized module
vii. Workshop reports
viii. M&E framework for monitoring workshops
Requirements
i. At least a Master degree holder in social sciences or MBA / MPA degree holder.
ii. At least 6 years experience of organizing similar activities, and 5 years experience of working on
similar tasks such as module development.
iii. Strong demonstrable organization, management and conflict resolution skills.
iv. Excellent communication skills.
i. Assist the Team Leader in undertaking the assignment, and ensuring that the deliverables are of
specified quality.
ii. Conduct Trainings of LFA officers with the assistance of other consultants
iii. Prepare report of each workshop
iv. Assist the CD Specialist in development of an M&E framework for training workshops
v. Any other task assigned by the PSO for meeting the objectives of this assignment
Deliverables
i. Workshop reports
ii. M&E framework for monitoring workshops
Requirements
i. At least a Master degree holder in social sciences or MBA / MPA degree holder.
ii. At least 5 years experience of conducting trainings.
iii. Strong demonstrable organization, management and conflict resolution skills.
iv. Excellent communication skills.
AWP 2005 10
Government of the Punjab
Finance Department
Provincial Program Support Office, DSP
9 Inputs
(0.5 page) Brief description of the inputs including personnel (number, specialties),
materials, and other relevant inputs
Individual Consultants
AWP 2005 11
Government of the Punjab
Finance Department
Provincial Program Support Office, DSP
Four individual consultants will be hired. These include Subject Specialists (2) Capacity
Development Specialist and a Trainer. The PSO may also hire Resource Persons for designing
and implementing the intervention.
Training venue
The consultants will be required to arrange venues for holding workshops
Material
These include stationery and other material for the workshops
Equipment
The equipment required is as follows:
Multimedia
Computer
Overhead projector
Printer
AWP 2005 12