Federal Republic of Somalia

Position of Auditor General

Terms of Reference (ToR) 

Issue date: August 14, 2013

Closing Date: August 24, 2013

A.    Background

1.                  Building robust Public Financial Management (PFM) systems and processes will be an essential step in making the Federal government a more effective institution that is able to deliver basic public services to the people of Somalia. To date there has been a lack of reliable information regarding the functioning of government PFM systems, further exacerbated by the absence of a modern public finance management (PFM) legal framework, weak compliance with laws that are in place. However, H.E. President Hassan Sheikh Mohamud has clearly prioritized enhancing public financial integrity institutions as one of the top three priorities of the new Federal Government (along with adequate security and enhancing the capacity of the Judiciary system and other public institutions to deliver services).

2.                  The Minister of Finance and Planning (Mohamoud Hassan Suleiman) presented the FRS PFM self-assessment report and proposed PFM strengthening initiative (2013-2016) to Development Partners on April 4 2013. The PFM self-assessment reported revealed the following key weakness: inadequate controls for revenue management; absence of long term planning and policy analysis to underpin annual budget formulation; budget execution and procurement processes lack adequate transparency and efficiency; inadequate banking supervision mechanisms by the Central Bank; lack of comprehensive reporting on the use of state resources; weak Parliamentary oversight over PFM functions; absence of a truly independent Auditor General; the existing PFM legal framework is inadequate and requires modernization; and  human resource and logistics challenges

3.                  The overall PFM reform objective is “to improve the efficiency and effectiveness of public financial management processes, and systems in order to provide timely, transparent and accurate financial information across the public sector to underpin policy formulation and inform Government decision making in support of service delivery”. In addition to achieving the expected budgetary outcomes of (i) aggregate fiscal discipline; (ii) strategic allocation and use of public resources; and (iii) efficiency of service delivery and probity. The reforms specifically aim to: improve transparency and openness of the national budget process; enhance fiscal discipline through internal and external controls; focus public expenditure on priority areas of Government programs; enhance efficiency and effectiveness of public expenditures; and strengthen overall financial management and accountability.

4.                  The Somalia ‘PFM Reform Architecture’ is underpinned by the Government’s “Foundations of New Beginning: Six Pillar Policy”; particularly pillar one that deals with good governance. The PFM reforms are anchored on four platforms: (i) instituting PFM fundamentals for budget credibility; (ii) effective budget execution and financial accountability; (iii) improved policy formulation, planning and budget preparation; and (iv) institutional structures; Strategic Human Resource Management (SHRM); Financial Management Information Systems (FMIS); and cross-cutting issues.

5.                  The extant PFM legal framework comprise of: the Financial and Accounting procedure of the State, 1961 as amended, Regulations for the Accounts of the State, and Stores Regulations; which regulate public financial transactions. These regulations were promulgated in 1961 with some amendments made in 1971. There are also, custom regulations (1965) that form the basis for the assessment of custom duties. In accordance with Article 26 of the Financial and Accounting procedure of the State, 1961 as amended, the Minister of Finance shall prepare the annual accounts and shall have the accounts submitted to the Magistrate of Accounts for audit in accordance with Article 90 of the Constitution, not later than the 30th of April of the year following that to which the said Annual Accounts relate.  Article 27 of the Financial and Accounting procedure of the State, 1961 as amended further provides that “the annual accounts approved by the council of Ministers and accompanied by a report of the Minister and a report of the Magistrate of Accounts on his audit shall be presented to the National Assembly for approval not later than 30th June following year to which the accounts relate”.

6.                  Article 1 of Law 34 of 1972, the Law on the Magistrate of Accounts creates the office of the Auditor General. This law provides that the Auditor General shall be appointed by the President and is placed under the Presidency. Article 10 of Law 34 of 1972, the Law on the Magistrate of Accounts require that no later than 31st May each year, reports on the annual accounts shall be transmitted to the secretary of state for finance. These provisions of the law practically weaken the independence and effectiveness of the Office Auditor General to function as a Supreme Audit Institution.  An Audit Law is therefore required to transform the Magistrates of Accounts consistent with the core principles on SAI. The chief aim of the Lima Declaration of Guidelines on Auditing Precepts adopted in October 1977 is to call for independent government auditing by a Supreme Audit Institution (SAI).

7.                  Article 26 of the Financial and Accounting procedure of the State, 1961 as amended require that the composition and organization of the Office of the Magistrate of Accounts and the guarantees of the independence of its members shall be governed by a separate law. To kick-start the PFM reforms whilst an Audit Bill is being developed; the Auditor General shall be appointed by the National Assembly through vetting by the Public Accounts Committee (PAC) and ratified by the President who shall determine the conditions of employment, including an appropriate salary, allowances and other benefits consistent with the position of a Chief Justice. The remuneration of the Auditor General would be a first line charge on the Consolidated Revenue Fund and will form part of the budget for the Office of Auditor General. The budget for the Office of Auditor General would be maintained under a separate budget head under his/her administrative control with an independent auditor appointed by the National Assembly.

B.     Job Description

8.                  The Auditor-General is the head of the SAI of the Federal Republic of Somalia with full legal capacity and independence subject only to the Constitution and the Public Audit Act (to be enacted[2]) and is accountable to the National Assembly. In the exercise of his/her duties; the Auditor-General must be impartial and must exercise the powers and perform the functions of office without fear, favour or prejudice in accordance with the International Organisation of Supreme Audit Institutions (INTOSAI) Code of Ethics for auditors in the public sector and the Auditing Standards. The SAI's audit objectives of legality, regularity, economy, efficiency and effectiveness of financial management in the public sector will be achieved by the Auditor General reporting to the National Assembly with the following responsibilities:

(i)          providing general leadership for the public sector auditing cadre and ensure strategic human resource management with continues professional development for all staff;

(ii)        preparing a Strategy and Development Action Plan (SDAP) that covers the following:

a.       Institutional and regulatory reforms necessary for the reinforcement of independence

b.      Strengthening financial autonomy

c.       Rationalization and improvement of management structures. Modern governance, strategic planning, budget setting, and monitoring arrangements

d.      Professional leadership

e.       Modern human resource management and change management capability including recruitment, staff performance, allocation of staff to emerging activities, management of underperformance, pay and remuneration, succession planning

f.       Communication strategy with National Assembly, MDAs, Judiciary, Police, business community, civil society organizations, media (public hearings), and staff

(iii)      approving all external auditing manuals and ensure adherence to the International Standards for Supreme Audit Institutions (ISSAIS) - http://www.intosai.org/issai-executive-summaries.html;

(iv)      establishing an audit risk management framework;

(v)        evaluating the effectiveness of internal controls in budgeting entities; and

(vi)      coordinating and cooperate with Internal Auditors in the Public Sector.

C.    Qualification and experience  

9.                  The suitable candidate should possess the following knowledge, skills, ability and other characteristics (integrity, ethics etc) marked as Essential (E) or Desirable (D) [3].

Knowledge

(i)     Be knowledgeable in Public Financial Management with a relevant university degree (E)

(ii)   A relevant academic degree from a reputable university and must be a professionally qualified auditor with current membership of a professional accounting body that is a member of the International Federation of Accountants (E). An MBA will be an added advantage.

(iii) Conversant with audit procedures and investigations and the expectations of the client (E);

Experience

(i)     At least ten (10) years post-qualification auditing experience in the private or public sector in a reputable organization (E);

(ii)   Familiarity with financial statements prepared in accordance with International Public Sector Accounting Standards (IPSAS) (E);

(iii) Be skilled in issues surrounding the use of package-based information management solutions (E);

(iv) Demonstrated ability to lead a multi-disciplinary project management team (D); and

(v)   Must have extensive experience in using practical techniques for change management (D)

Personality

(i)     Charismatic and visionary leader (D);

(ii)   Excellent interpersonal skills (E);

(iii) Ability to communicate effectively with junior and senior government officials, politicians, the general public and development partners (E); and

(iv) Organised and confident with ability to work under pressure (D)

F.         KEY DELIVERABLES

(i)                 SAI Strategy and Development Action Plan (SDAP)

(ii)               Publication of audit report on the financial statements of public entities by the statutory deadline

(iii)             Publication of special audit and investigative reports

(iv)             Audit risk management framework

(v)               Motivated and highly skilled and experienced auditing cadre  

(vi)             Follow-up on audit findings and National Assembly recommendations

Salary and general conditions of service are expected to be very attractive and at the same time considerate to the rules and regulations of the Civil Service Commission.

Interested and qualified candidates are requested to submit online applications only according to the following procedure

 An updated CV; and an application letter which should include contact information for three work-related referees.

 Hand delivered applications will no longer be accepted.

 Applications that do not meet the above requirements will be disregarded

 Only shortlisted candidates will be contacted.

 Send your application on the following email: [email protected]  and [email protected]

QUALIFIED FEMALE CANDIDATES ARE PARTICULARLY ENCOURAGED TO APPLY