SMALLHOLDER AGRICULTURE DEVELOPMENT PROJECT II – EXPRESSION OF INTEREST :

REQUEST FOR EXPRESSION OF INTEREST

Kingdom of Lesotho

MINISTRY OF AGRICULTURE AND FOOD SECURITY

SMALLHOLDER AGRICULTURE DEVELOPMENT PROJECT II

REQUEST FOR EXPRESSION OF INTEREST: ENGAGEMENT OF INDIVIDUAL CONSULTANT TO UNDERTAKE EXTERNAL PROCESS AUDIT OF THE SADP GRANTS PROGRAM FOR SADPII 2022

(CONSULTING SERVICES- INDIVIDUAL CONSULTANTS SELECTION METHOD)

LOAN NO                   :    P164486

CREDIT NO               :     IDA -63580 -LS

ASSIGNMENT TITLE:   ENGAGEMENT OF INDIVIDUAL CONSULTANT TO UNDERTAKE EXTERNAL PROCESS AUDIT OF THE SADP GRANTS PROGRAM FOR SADPII 2022                           

REFERENCE NO      :     LS-MAFS-431775-CS-INDIV

DURATION                :     FIVE (5) WEEKS

REPORTING TO       :    PROJECT DIRECTOR  

BACKGROUND

External process audit of the SADP grants program

The Government of Lesotho is currently implementing the Smallholder Agriculture Development Project (SADP) with funding from the World Bank and the International Fund for Agricultural Development (IFAD).  The project includes a program of grants provided on a competitive basis to farmers and rural businesses to grow their business introducing technological innovations and improved business practices.  The project enters into an agreement with the beneficiaries. The Recipient shall open and maintain an account or subaccount (the Grant Account), and may withdraw from there for expenditures in respect of the reasonable cost of goods, works and services required for the Activities and financed out of the proceeds of the Grant in accordance to Annex II of this Agreement (Project Budget). Expenditure of grant funds must adhere to the terms and items defined the grant recipient’s approved grant agreement. When transfers among the items of the approved budget become necessary and the estimated change is more than 20% of the value approved in the agreement’s budget, the grant recipient should request the approval of the Project Management Unit (PMU) in coordination with the Matching Grants Committee (MGC). When the grant recipient wishes to establish a new line item that affects the technology or business initiative, he/she/it shall promptly request in writing authorization from the PMU/MGC and all such records are to be kept at the PMU in a file folder maintained for each grant beneficiary.

The Grants program is regulated by a Grant Manual which identifies the various actors in the process of grant approval and implementation. The Matching Grants Committee (MGC) holds right to terminate grants that do not follow the principles lined out in the grant manual.

In the external audit of SADP 2 of 2022, the Accountant General has identified grants for which the measures defined in grant manual and the grant agreement were not systematically followed.

OBJECTIVE OF THE ASSIGNMENT

The objective of this assignment is to get a better handle of the application of the processes defined in the grant manual and the formulation of the grant agreements with each beneficiary and the extent to which the principles and clauses in the agreement are not followed and the documentation contained in the file folders of each beneficiary. The project would like to get a better sense of the frequency with which there is misapplication of the grant agreement and the grant manual and measures that would need to be taken to correct such occurrences.   As such, the assignment will verify whether expenditures funded over the project implementation period are eligible as outlined in the grant agreements; whether funds have been used for the purpose intended with due regard for economy and efficiency; and whether the grants processes and controls sufficiently address the risk of fraud and corruption in the administration and payment of grants.

SADP 2 is looking for a consultant to look into this issue, prepare a detailed report that will be submitted to the Government of Lesotho, World Bank and IFAD management to make an informed decision. The consultant will report to the Project Manager in the PMU but will also communicate directly with the World Bank team should the latter have any questions on the engagement. The World Bank team should be copied on communications from the consultant to the PMU. 

TASKS TO BE UNDERTAKEN:

The assignment consists of reviewing the processes leading to the grants for beneficiaries under SADP starting on June 30, 2020.  Utilising a combination of document analysis, stakeholder interviews, workflow observations, and applying unbiased assessment practices to ensure the integrity and transparency of the audit process; the following activities that need to be performed:

• review the progress reports of a sample of grant beneficiaries no less than 20 percent of the total number of grants(310 grants)  selected on a risk basis, including amount received and amount of money spent and goods and works installed as part of grant financing.
• accompanied by the project accountant dedicated to grants, he/she will review all the invoices attached and reconcile them with the budget items in the grant agreement.
•   independently interview beneficiaries about the process and determine any deviations from the grant manual and grant agreement focusing on processes and documentation and determine the level of irregular expenditures and the reasons for their occurrences.
• propose measures such as the review of the grant manual, update of the grant agreement format or any training or modification of processes to improve transparency and record keeping of the grant program.
• Finally, prepare a report with the necessary attachments illustrating findings with recommendations to mitigate future occurrences and reduce irregularities or issues to be raised in future audits that will be shared with the Bank for review.
•  Where suspected cases of fraud, corruption and other sanctionable practices are identified, these should be reported to the World Bank for deciding the proper course of action, having each case being detailed in the addendum to the final report…

Working papers and supporting documentation should be prepared by the consultant and retained to properly document and evidence the audit procedures performed and the findings.

Should the consultant encounter challenge in obtaining the required records and information during the performance of the assignment, they will immediately advise the World Bank’s lead for the project.

REPORTING

• The consultant will prepare a comprehensive report in English that describes the results of the above analysis.
• The report will be shared with the World Bank, the Project Director, the grant manager as well as with the financial Manager who will get a chance to comment on the report.
• The report should include details and supporting documents for any potentially ineligible expenditures identified by the review.

QUALIFICATIONS OF THE CONSULTANT

1. Master’s in financial management or CPA with experience in auditing processes and evaluating effectiveness of grant programs. 
2. The consultant must possess the ability to communicate effectively with a wide range of stakeholders including beneficiaries and farmers, staff of implementation agencies of donor-funded projects, and local and central government officials. 
3. An International Consultant with Previous experience with World Bank and or IFAD-funded projects and an understanding of their projects and processes would be preferred.

DELIVARABLES & TIMELINE

The work is expected to start at the end of July, 2024 and will encompass a total of around 5 weeks of work

1. Location (geographical coverages) of the assignment: Maseru, Lesotho however the beneficiaries are based in the  10 districts of Lesotho.
2. Client Assignment Performance Management and governance arrangement information

The Individual consultant will be reporting directly to the Project Director, inline with the timelines and deliverables stipulated in the table above.

3. Data, Services, and facilities to be provided by the Client and quality assurance information.
4. SADPII will provide the individual consultant with relevant supporting documentation, system-based information and information about stakeholder location and contact information to facilitate interviews
5. Office space, Computer, printer, and internet will be the responsibility of the individual consultant.

    4. Contract type: Lump-sum

CONTRACT DURATION AND CONDITION

•           Contract duration is Five (5) weeks.

FACILITIES TO BE PROVIDED BY THE CLIENT

The client shall render the consultant with all such facilities as may be reasonably required to enable the consultant to discharge his/her duties that is office space laptop/computer, internet, and transport project-related duties.

The short-listed candidate will be requested to participate in personal interviews and submit the names and contact details of personal referees who can attest to their abilities. A pre-employment screening and background check will be done on all short-listed candidates. The successful candidate must understand the objectives and delivery mechanisms of the project’s portfolio.

The attention of interested Consultants is drawn to Section III paragraph 3.14 to 3.17 of THE WORLD BANK’S Procurement Regulations for IPF Borrowers, PROCUREMENT IN INVESTMENT PROJECT FINANCING Goods, Works, Non-Consulting and Consulting Services, Fourth Edition, November 2020, setting forth the World Bank’s policy on conflict of interest. A consultant will be selected in accordance with selection of Individual Consultants Method set out in Procurement Regulations.

SUBMISSION

Expressions of interest accompanied by detailed CV must be delivered in a written form to the address below by 16:00hrs local time on 2^nd July 2024 clearly marked ‘’ EXPRESSION OF INTEREST FOR  ENGAGEMENT OF INDIVIDUAL CONSULTANT TO UNDERTAKE  EXTERNAL PROCESS AUDIT OF THE SADP GRANTS PROGRAM FOR SADPII 2022 ”

To: Project Director SADP

Ministry of Agriculture and Food Security

Department of Livestock Services -Moshoeshoe 11 

              P.O. Box 24

Maseru 100 Lesotho.

Only shortlisted candidates will be notified.