Mekong Delta Region Urban Upgrading Project

Contract Reference No: MoC 09. No 25/2014/HDTV-BQLPTDT

Scope of Contract: The main objective of this consultancy is to build capacity of Internal Audit of the existing government staff assigned to do Internal Audit work for the Project at the PCU in MOC and the 6 PMUs under the MDR-UUP and for other WB funded projects owned and implemented by MOC and the provinces. In addition, this consultancy will provide Internal Audit services for the (four semi-annual Internal Audit reports) and provide quality assurance for the remaining Internal Audit reports for next year's Consultant contract (for the fiscal year up to 31/12/2016).

1. Prepare a Gap analysis report and Recommendation report of the Internal Audit for the Project on the basis of Internal Audit gap analysis report approved by the Ministry of Finance through World Bank-financed projects;
2.   Developing a risk based Internal Audit methodology that is (i) in compliance with International Standards on Internal Auditing of Institute of Internal Auditors (IIA) and (ii) tailored to the urban sector. This methodology must be developed on the basis of consideration of prevention measures for risk and fraud which were approved and implemented by the MOC and WB for similar projects;
3. Developing risk based IA strategic plan and detailed IA programs for the Project. The strategic plan should be developed for the entire project life and the detailed programs should cover at least for the first two years of Project implementation (for year 2013-2014);
4.   Supporting the PCU in revising the Task  of Internal Audit at MOC and provincial levels in appendix 1 attached;
5. Review the PMU's procurement performance against the procurement requirements stipulated in the Financing Agreement and World Bank Procurement/Consultant Guidelines and elaborated in the Project Implementation Manual identifying any noncompliance, irregularities (including allegations of fraud and corruption), delays, or bottlenecks and recommending measures to address such issues (for the first years of Project implementation (for year 2013-2014)

6. Review the PMU's management of contracts against the terms and conditions of the signed contracts identifying any noncompliance, irregularities (including allegations of fraud and corruption), delays, or bottlenecks and recommending measures to address such issues (for the first years of Project implementation (for year 2013-2014);
7.   Preparing a training plan, developing materials, organizing and delivering training courses including a study tour for the assigned Internal Audit personnel of the PCU and the 6 project PMUs on (i) the revised mandate of provincial inspectorate or relevant agency, (ii) Risk based Audit methodology for Urban Sector and (iii) Audit Strategic Plan and Audit Programs for the Project. The training plan should include training courses and workshop;
8.   Preparing  a detail Internal Audit Manual for the Project based on the Internal Audit manual that has been issued by the Ministry of Finance through World Bank-financed projects. The content of Manual includes but not limited to the main following issues: Introduction about Internal Audit; Guidelines on Internal Audit procedure; Guidelines on the management of Internal Audit activities; Guideline on management and improvement of Internal Audit quality; some templates and illustrations of Internal Audit procedure in some upgrading and development urban project. This Internal Audit manual needs to be approved by the WB and MUDP;
9.   Conducting the first four semi –annual internal audits of the Project according to the approved Audit Strategic Plan and Audit Program; and directly providing training to the assigned Internal Audit personnel of the PCU and PMUs through domestic training courses, study tours and actual work. Moreover, the Consultant is also responsible for handing over of IA skills to the auditors who will be responsible for the Project Internal Audit in the following years. Specifically, the consultant will be required to:
·      In the first two years of Contract implementation, lead the team comprising of consultant and assigned Internal Audit personnel to conduct the Internal Audit at PCU and all PMUs. The consultant would be responsible for leading the team, performing the audit of high risk sections and providing hands on training to other team members for the first  four semi- annual internal audits.
·      In the Internal Audit Reports for the initial years of Project implementation (for year 2013-2014), in the Internal Audit report. The consultant shall provide a separate chapter discussing the specific findings and recommendations on the performance of procurement and contract management.
·      In the following years of the Contract, the role of the Consultant would be mainly on quality assurance of the Internal Audit Reports which will be mainly conducted by the assigned Internal Audit personnel of the PCU and all PMUs and providing further hands on training when necessary.
10. The Consultant must co-ordinate with the Independent Financial Audit consultant (if any) during plan-making process and hand-over the internal auditing skill to the designated internal auditors;
11. The Consultant must co-operate with WB Task Team during contract implementation.