OFFICE OF THE

CONTROLLER GENERAL OF ACCOUNTS

DIRECTORATE GENERAL MIS/FABS, Islamabad.

CORRIGENDUM (E0I-26)

In continuation of our Expression of Interest "(E01-26-Selection of Consulting firm to Revise New Accounting Model-NAM) published in "The Daily News", "The Daily Jang" and "The DAWN" on 15-09-2019 (Sunday) for which Revised date for submission of E0I-26 documents may be read as 18-10-2019 (Friday) instead of 02-10-2019 (Tuesday)".

The remaining text body, terms and conditions of the original E0I-26 will remain the same.

Director General

Directorate General MIS/FABS, Department of the CGA

Old Federal Bank for Cooperative building, Ground Floor,

Ataturk Avenue, Sector G-5/2, Islamabad, Pakistan

Tel: + 0092 -51 - 9214620 /Fax +0092-51-9208896

Email: dgmis@cga.gov.pk

Donate for Diamer-Basha & Mohmand Darn

OFFICE OF THE

CONTROLLER GENERAL OF ACCOUNTS DIRECTORATE GENERAL MIS/FABS, Islamabad.

ift..0.00=10 EXPRESSION OF INTEREST (EOI-26)

FOR SELECTION OF CONSULTING FIRM TO REVISE NEW ACCOUNTING MODEL OF PAKISTAN (NAM)

The Office of the Controller General of Accounts through its Directorate General MIS invites Expression of Interest (E0I-26) from the consultant firms for Revision of New Accounting Model of the Government of Pakistan in a year time period. The firms who are on Active Taxpayers List (ATL) of the Federal Board of Revenue, having presence in major cities of all four provinces, with given below qualification and expertise mentioned in para 7 to undertake the assignment for Revision of New Accounting Model (7 books) for completion in a year with probable start of the assignment from Dec-2019. The Method for hiring/selection of firm will be "Quality and Cost Based Selection" under "Two Stage bidding procedure" in a compliance to PPRA Consultancy Regulations 2010, PPRA Rules 2004, PPRA Consultancy Guidelines and PPRA Ordinance 2002. /. Background: With support from the World Bank, the Government of Pakistan has initiated a reform program called "Public Financial Management and Accountability to Improve Service Delivery Program-for-Results (PforR)". This program supports the Public Financial Management (PFM) Reform Strategy (2018-2027) of the Government of Pakistan. The pforR program aims to improve PFM through various measures, inclusive of: a PFM law; strong cash management; timely and comprehensive financial reporting; improved federal-provincial coordination; timely release of funds; streamlined payroll and pension systems; efficient and transparent procurement; timely processing of payments, and user-friendly reports for citizen engagement.

Purpose: An important initiative envisaged under the PforR program pertains to revision of the New Accounting Model (NAM). under which financial accounting and reporting functions of the government are being carried out. NAM was initiated in Pakistan in the year 1998 using the Generally Accepted Accounting Standards as suggested in the INTOSAI guidelines for the governments' financial reporting and international good practices. The salient features of existing NAM include: modified cash basis of accounting, double-entry book keeping, a multi-dimensional Chart of Accounts, GFS- COFOG reporting, asset accounting and commitment accounting. NAM comprises: a) Manual of Accounting Principles (MAP); b) Handbook of Accounting Guidelines; c) Accounting Policies and Procedures Manual (APPM); d) Financial Reporting Manual; e) Accounting Code for Self-Accounting Entities; 0 Accounting Policies and Procedures Forms; g) Chart of Accounts. Purpose of the consultancy assignment is to develop a revised NAM to meet current and future financial reporting requirements of the government and to align it with international good practice.

Scope: A key area of consideration for revision of NAM would be the extent to which financial reporting system of the country should adopt features of accrual accounting. A detailed action-plan for such transition would have to be laid out. Government's budgeting and accounting processes are now being run on SAP-ERP based GFMIS called Financial Accounting and Budgeting System (FABS). This shift to IT systems also necessitates updating of NAM, particularly its Accounting Policies and Procedures Manual of NAM. There is a requirement to link FABS with databases of other government entities, to capture timely financial information from entities outside of GFMIS. The processes and procedures for reporting and recording such data, any changes in Chart of Accounts, and impact on current practices of reconciliation would need to be evaluated and reflected.

Under NAM certain entities were categorized as exempt entities, which were treated as outside the purview of accounting responsibilities of CGA. While updating NAM, comprehensive coverage of public sector entities under the ambit of financial reporting function of CGA needs to be addressed. To implement Treasury Single Account (TSA), cash balances of government in commercial banks also need to be reported into the FABS. Accounting and reporting framework for TSA would need to be accommodated in NAM, there is a need to incorporate business process

modifications in NAM. These would include, online submission of payment claims to accounting offices; Electronic Fund Transfer (EFT) of payments to employees/vendors; e-procurement system; reporting in terms of geographic location of entities; and in thematic areas like climate change, nutrition, Sustainable Development Goals, immunization and other development concerns of the government. Any allied changes for incorporation of above-mentioned reforms/ improvements in other books of rules and procedures of the government would need to be highlighted.

6. Hard and soft copies to be delivered to focal person (mail and email address):

Nasir Ali Khan, Asstt. Accounts Officer (Proc & CM), MIS/FABS Directorate General MIS/FABS, Department of the CGA, Old Federal Bank for Cooperative Building, Ground Floor, Ataturk Avenue, Sector 0-5/1 Islamabad, Pakistan Tel: + 0092 -51— 9203219, 051-9214620 /Fax +0092-51-9208896, nasirali@cga.gov.pk

7. Qualification Criteria for Shortlisting: Interested firms must provide information indicating that they are qualified to perform the

services (brochures, description of similar assignments, experience in similar conditions, availability of appropriate skills among staff, etc. for firms) as per qualification below:

Registered as legal entity for the last 10 years in providing Consultancy Services of similar nature or related assignments. (Certificate of Incorporation issued by relevant authority). Audited financial reports or other credible financial documents for three years (2016 to 2019) with positive Net Worth. Experience for a minimum of executing two similar type and nature of contract with value of PKR 80 Million or US$ 0.5 Million each contract (equivalent to Pakistani Rupees Eighty Million Only) having been executed during any of the last 5 years indicating the duration, value and years of performance to determine strength of firm to undertake work. The consultant has successfully completed at least two projects, covering: a) development of legal architecture (Act, Rules, Regulation. Manuals etc.) for public financial management; b) development of large IT-based budget and accounting system. In case of JV, the principal bidder shall meet the minimum requirement of (a, b, and c) above. For subconsultant the above requirement does not apply. The Consultant while describing the assignment(s) for similar experience should furnish the following details to explain in what way the executed assignment(s) was/were relevant to the current assignment and explain the exact role played by the Consultant in the assignment, if the assignment was carried out in association with other firms as JV or in sub-consultancy. Consultant should be well-versed with IT environment of the government, working of ERP-systems, working of government's Finance and Accounting offices, reporting requirements of donors, public financial management context of the country; experience of similar assignment at regional/international level shall be preferred.

8. Supporting documents related to assignment mailable at given link website:

Public Financial Management Act (www. finance. gov. pk/Pu bl icFinanceManagementAct2019.pdf) Project PfbrR Appraisal Report (www.projects.worldbank.org) Existing New Accounting Model- 7 books (vvww.fabs.gov.pk/downloads)

9. Expressions of interest must reach to the focal person (in person, or by post) at the address mentioned above under para 6 on or before 1100 hours on October 1st , 2019 (Tuesday) which shall be opened on same day at 1130 hours in the presence of representatives of consulting firms who may choose to be present in Committee Room of CGA Office, 6th Floor, Sector, Old FBC Building, Opposite Nespak Office, Sector 0-5/2, Islamabad. The detailed E01 is available FREE OF COST from MIS Directorate, 0/o the CGA and also available on the websites: i) www.cga.gov.pk, ii) vvwvv.fabs.gov.pk iii) wvvw.ppra.org.pk.

Director General Directorate General MIS/FABS, Department of the CGA

Old Federal Bank for Cooperative building, Ground Floor, Ataturk Avenue, Sector 0-5/2, Islamabad, Pakistan

Tel: + 0092 -51 - 9214620 /Fax +0092-51-9208896, Email: dgmis@cga.gov.pk

CHECK LIST OF DOCUMENTS

FOR SHORT LISTING OF CONSULTANCY FIRM

UNDER EOI-26- REVISION OF NAM (7 Books)

S# Short listing Requirement

Documentary Proof Attached Bid (Yes)

Page Yes

with /

#

01

Legal status: Registration

Existence

Firm or JV

Certificate of Registration (COR)

10 Years Yes

status Yes

02 Financial Standings: Audited Financial Statements

OR Credible financial document

For three (03) years only (any 03 reports from 2016 to 2019)

Yes

03

Experience

Two similar type and nature of contract with value of NCR 80 Million or US$ 0.5 Million each contract having executed during any of the last 5 years

Yes

04 Projects (at least 02 in Number)

Development of legal architecture (Act, Rules, Regulation, Manuals etc.)

Yes

Development of large budget and accounting IT system.

Yes

05 Qualification criteria Principal bidder meets (clause a.b.c) of qualification criteria while for sub consultant above does not requires.

Yes

06 Describe the Relevance Executed assignments relevant to NAM revision.

Yes

Exact role played by consultant (Change Agent/Trainer/Implementation/manual writing/system development/Architecture)

Yes

07 Firm's understanding with IT Environmental background

Should be well-versed with IT Environment

Yes

Government of Pakistan Finance and Accounting Offices working environment

Yes

Donors reporting requirements Yes

Public Financial Management (PFM) Yes

Some regional experience is desirable Yes

Signature by bidder:

Name/Designation:

Email:

Contact No: