Terms of Reference for an Individual National Consultant to conduct the testing of the TrackFin Methodology in Uganda.
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1 Terms of Reference for an Individual National Consultant to conduct the testing of the TrackFin Methodology in Uganda 21 July, 2017 Introduction: The Ministry of Water and Environment (MWE) is implementing the TrackFin Initiative in Uganda. This is a globally accepted methodology led by the World Health Organization (WHO) that aims to track financing for drinking-water, sanitation and hygiene at the national and decentralised levels, which helps to facilitate better resource allocation and evidence-based decision-making. Using standard classifications, the method enables countries to comprehensively track financing to the sector, identifying how funds are allocated and used at national, district, and local levels on a regular basis. The output is a set of WASH-related accounts and indicators, referred to as WASH accounts, which clearly depict WASH financing in the country. These WASH accounts build on the experience of the development of health accounts. Objectives of the assignment The overall objective of the assignment is to define and test TrackFin initiative methodology in Uganda. Specifically, the assignment will aim to answer four basic questions that include: 1. What is the total allocation and total expenditure in the sector (from various sources government, development partners, CSOs/NGOs, private sector)? 2. How are the funds allocated and spent to the different WASH services and expenditure types, such as capital expenditure, operating and maintenance expenditure, direct and indirect costs cost of loan servicing)? 3. Who pays for WASH services, and how much? 4. Which entities are the main channels of funding for WASH; what is their share of total spending? Testing the TrackFin initiative in Uganda The Ministry of Water and Environment will lead the testing of the TrackFin initiative methodology in Uganda and will through IRC International Water and Sanitation Centre recruit an Individual National Consultant (INC) to conduct the testing. The testing process and what the Individual National Consultant is required to do 1. Pre-testing arrangements (before the data collection): Conduct preliminary work to collect available information and identify key issues for the application of the proposed methodology to Uganda context. Conduct the data inventory to identify available data, using the data inventory sheet available in the TrackFin Guidelines document. Interview key informants in selected stakeholder institutions to identify the extent to which data is available within those organizations Discuss alternative methodologies for collecting the data with the TrackFin Champion and TrackFin Task Team Define a data collection plan and budget for data collection and analysis Present and inception report to a national-level workshop to which all members of the national stakeholder group will be invited, together with a broader range of actors if available (such as decentralised governments). 1
2 2. Collecting financial data The data collection will be defined based on the analytical framework presented in section 2 of the guidance document. The INC will need to answer three basic questions in order to collect the data: Which services are consumed? How are services provided and by whom? How much do these services cost and how are they financed? This requires: (a). Collecting qualitative data to determine the WASH sector boundaries in terms of services The INC will propose a classification of WASH services that will be used for the testing exercise so as to clarify the WASH services that will be taken or not into account. The INC will identify the classifications and categories of WASH services that are being used in Uganda. This assessment will be done looking at the data sources identified and national and decentralised WASH sector reporting standards, if such reporting exists. The INC will then analyse the similarities and differences with international classifications (such as COFOG and ISIC, see Table MN1.4 of the guidance document). The NC will assess whether the same categories can be used, depending on the importance of the service category and the way data is collected in Uganda (using or not these categories). Based on this analysis, the INC will then state very clearly which activities are included in the WASH sector definition, by reference to the international classifications. The definition of these categories will be used to collect data directly according to them if possible or based on aggregate categories (e.g. water supply services, sanitation services, construction services, support services). (b). Identifying the main WASH sector actors, map service provision and financial flows The INC will identify and define a classification for WASH actors and financing that are being used in Uganda. The NC will thereafter analyse similarities and differences with the classifications in the Guidance Document (See Table 2). The INC will assess whether the same categories can be used, depending on the importance of the service category and the way data is collected in the country (using or not these categories). Based on this analysis, the INC will then state clearly the classifications of WASH actors and financing sources that will be used for the testing exercise, by reference to Table 2, and will organise actors and financing sources into categories using the proposed classification. The INC will then use the information collected on WASH sector actors and service provision to map out the financing of the WASH sector, with the actors and financing flows schematised for each of the four sub-sectors identified in Table 1 (if necessary, i.e. if there are substantial differences between them). This mapping exercise can be done following the example of the graphical representation on the Figure 4 of the TrackFin Guidance document. (c). Collecting quantitative data to quantify the financial flows and capital stocks The INC will first identify which data is required to answer any policy questions so as to make sure that the data collection process is focused on answering these questions in priority. The INC will particularly look at data sources that are already collecting financial data from the WASH sector on a regular basis, such as the Sector Performance Reports, the Uganda Bureau of Statistics, Budget Monitoring Unit of the Ministry of Finance, Planning and Economic Development, and others. The INC will review the other approaches used in collecting the financial data so as to assess whether aggregated data collected can then be allocated in the defined categories. The INC will gather financing data at source, starting with the approach that allows generating the most comprehensive data set (i.e. either Financing Source Approach or Service Provider 2
3 Approach ). Both approaches will need to be applied in parallel as they provide complementary information, particularly needed to allocate costs to types of services. For financing flows, this will be done according to the time period (3 financial years) The INC will enter the data records in the data base and allocate WASH-A classification codes to all data entries. Once the main data sources have been collected, the INC will identify remaining data gaps in the information and recommend (and conduct) any supplementary primary data gathering (such as additional surveys). 3. Analysing financial data The data will be compiled in standard WASH Accounts Tables and indicators as detailed in the TrackFin Guidance Document. This is to make the information comparable between Uganda and other countries or within Uganda between the national and decentralised levels. These tables aim to reflect the financing flows that are circulating in the national economy between financiers, producers and consumers of WASH services. The INC will identify the tables and indicators from the list presented in the TrackFin Guidance document (Methodological Note 6), based on which are most relevant to answer the country s policy questions. The INC will undertake background calculation with the data collected in the database and compile the WASH Accounts Tables. The INC will also calculate the WASH Accounts indicators and create new ones to answer to the policy questions asked by the TrackFin Task and Core Teams. All this compilation process, the hypothesis used and the calculation made will need to be thoroughly documented so as to enable the production of the WASH Accounts tables following the same methodology and compiling comparable data in subsequent years. 4. Interpreting and disseminating findings This step is crucial as it will enable to extract and disseminate meaningful findings from the data collected. The INC will analyse the data collected in the WASH Accounts tables and interpret the data using other data sources and non-financial information to answer to the policy questions. The INC will produce a summary report presenting the main results and findings of the WASH Accounts (including key WASH Accounts tables and indicators). To the extent possible, the WASH Accounts consolidated reports should contain the following elements: Country background information to provide context for understanding the WASH Accounts findings; The tables and indicators proposed above, plus extra ones if need be, to inform the GLASS report and national policy; Results of the analysis for the specific country; Policy recommendations that can be inferred from the results of the analysis; Information on data collection and estimation methods (in an Annex); and Documentation of the WASH Accounts data sources and any methodological information that is important to properly interpret the WASH Accounts results (in an Annex). The NC will also write concise and user-friendly policy briefs for decision makers focused on a specific policy question to disseminate the WASH Accounts findings. These notes will be circulated as widely as possible across WASH policymakers, high level members of the government, WASH advocates, NGOs and international organizations in the country. This is crucial not only to share the findings of the WASH Accounts, but also to raise awareness, gain support and create future demand for such financial information. 5. Providing feedback on methodological development Finally, the INC will produce a short note drawing out lessons learned at national level with the implementation of the guidance document, focus on specific areas, in particular methodological issues where feedback is expected particularly such as on: The appropriateness of the proposed classifications to define the WASH sector and the way it is financed; 3
4 The feasibility to collect such data in the country; The methodology proposed to value the financing flows and capital stocks; Potential modifications to improve both the classifications and the methodology; Feedback on the overall process to conduct the exercise from an organisational point of view. In this report, the INC will answer to the questions stated in the Provide Feedback section (Figure 1 below). It will give recommendations to the WHO secretariat with respect to how the global methodology could be improved or modified. Deliverables The INC is expected to produce: 1. An inception report before launching the data collection; 2. A national-level WASH Accounts report; 3. Short policy briefs to be determined by the TrackFin Core team; 4. A Lessons learned on the implementation of the guidance document note. The INC will address the inception report to the TrackFin Champion, TrackFin Task Team, TrackFin Core Team and WHO TrackFin Team Leader. It will outline the work plan and data collection methodology and process, as well as the data sources and the challenges identified. It will show how the data collected will enable to answer the policy questions. The national-level WASH Accounts report will be developed based on a common format specified below. The report should be a maximum of a 60-page long, with any additional relevant detail presented in Annexes, and with an Executive Summary. This report should be structured as follows: 1. Introduction Context, Objectives of WASH Accounts Policy objectives Structure of the report 2. Country background (Socioeconomic profile, political and macroeconomic environment), 3. The WASH sector in Uganda Access to WASH services (key figures) The WASH sector institutional and service provision framework (main wash sector policy that impact WASH provision and financing, and mapping main institutional stakeholders and service providers and there functions); WASH sector financing (how is the sector financed and by whom?) 4. The conceptual framework of the WASH Account Definition of WASH sector boundaries used Definition of the WASH sector actors and financing flows categories used 5. WASH Accounts findings Summary indicators What is the total expenditure in the sector? WASH services, service providers and users: How are funds distributed to the WASH sector and who uses them? Financing Sources: Who pays for WASH services? Financing Agents: How is funding channelled in the WASH sector? 6. Summary of findings and Policy recommendations Summary of Findings 4
5 Policy Implications and Recommendations (with reference to the policy questions asked) Recommendations for Further Analysis Conclusion Annex 1: WASH Accounts tables and key indicators Annex 2: Methodology of the data collection process and WASH Accounts data sources; Annex 3: Estimation methods of the WASH Accounts tables (Documentation of estimation methods and any methodological information that is important to properly interpret the WASH Accounts results) The short policy briefs will be determined by the TrackFin Task Team. These will be short 6 page maximum documents addressed to decision makers that will answer specific policy questions with the findings from the WASH Accounts. The Lessons learned on the implementation of the guidance document note will be a 20 page document addressed to WHO secretariat. It will be structured as follows: 1. Introduction 2. General comments on the overall organizational process and data collection Provide feedback on the overall process to conduct the exercise from an organisational point of view 3. Step 2.1- Defining WASH sector boundaries in terms of services Is the proposed list (see Table MN1.4.) usable and useful in your country to define sector boundaries? What would be the ideal level of aggregation of data that would answer policy questions and be easily collected at the same time? Can WASH data based on international classifications be found in your country? Would it be necessary, in your opinion, to refine existing classifications in order to better match WASH sector needs? Suggest modifications to improve the classifications. 4. Step Defining WASH Accounts classifications for WASH sector actors and financial flows For each classification, the report will assess the appropriateness of the proposed classifications to define the WASH sector in the country and the way it is financed; o Would it be necessary, in your opinion, to refine existing classifications in order to better match WASH sector needs? o Do the proposed global classifications cover all identified actors at country level? o Do they need to be modified to better adjust to the country s context? Indicate whether a common classification of WASH actors and financing sources is useful Report on any difficulties encountered in carrying out the exercise to classify actors and financing flows and ways to address them Suggest modifications to improve the classifications 5. Step Estimating financial flows and capital stocks Assess the feasibility to collect such data in the country; Assess the feasibility to follow the methodology proposed to value the financing flows and capital stocks; o Are the costs categories usable and useful in the country? o Appropriateness of using a balance sheet/fixed assets accounting approach o When using a balance sheet approach: on methods for asset valuation and on whether to deal with liabilities alongside assets o Suggest modifications to improve the methodology 5
6 6. Step 3 - Analysing financial data and using WASH Accounts tables Indicate the appropriateness of the suggested tables to collect meaningful financial information in a way that can be used to answer to the policy questions. 7. Step 4 Interpret and disseminate findings Provide feedback on ways to disseminate findings: what format was used and did it reach the intended audience? 8. Summary recommendations to improve the guidance documents Duration The project will be implemented from August 2017 to November The table and figure below present the deadlines for deliverables and key milestones Planned Procurement schedule (Subject to changes) is as follows: Activity Date a. Publication of EOI 03 rd August, 2017 b. EOI closing date 17 th August 2017 c. EOI Evaluation process Within 7 days after receipt of EOI d. Shortlist Within 5 days after TrackFin Task Team approval (15 th August 2017) e. Interviews 18 th August 2017 f. Contracting 24 th August, 2017 Planned testing period Deliverables Date of submission Inception report 7 th September, 2017 Mid-term study report 10 th October, 2017 Final study report 10 th November, 2017 Six Short policy briefs 24 th November, 2017 Document on Lessons learned on the 30 th November, 2017 implementation of the guidance document Qualifications for the Individual National Consultant 1. WASH sector economics and finance expert 2. At least 10 years of experience working in the WASH sector, public expenditure management and public accounting fields, WASH sector financing, statistics, cost analysis, public finance and national accounting 3. Excellent and solid understanding of the WASH sector, the key current policy and governance issues and decisions under debate, as well as the management of the issues 4. Experience in data collection and analysis 5. Strategic thinking and planning as demonstrated by participation in past or existing international expert groups, advisory committees or similar endeavours; 6. Ability and experience in writing policy briefs 7. Strong oral and written communication skills in English. The short listing criteria will include: A detailed profile of the INC Evidence from the INC in carrying out similar assignments, Evidence from the INC of an assignment with a Government institution. Evidence of appropriate qualifications and skills for the INC 6
7 Work arrangements and reporting Contracting of the Individual National Consultant will be done by IRC on behalf of the Ministry of Water and Environment. The INC will be under the direct supervision of the TrackFin Champion who will be supported by members of the TrackFin Task Team including the MWE TrackFin Focal Point Person, MWE TrackFin Coordinator, WHO Uganda representative, UWASNET and IRC. The INC will share with them progress, issues encountered and decisions to take from the inception stage and throughout the data collection process. The TrackFin Task Team will help the INC to identify any potential stumbling blocks encountered. Recommended reference documents 1. Local Government Budgets & Performance 2. Local Government Releases 3. Ministry of Finance, Planning and Economic Development budgets and expenditure documents 4. Ministry of Water and Environment Annual Expenditure Reports 5. Ministry of Water and Environment Sector Annual Plans and Budgets 6. Ministry of Water and Environment Sector Institutional Framework 7. Ministry of Water and Environment Sector Performance Reports 8. National Budget Documents 9. National Budget Performance 10. Sector Budgets & Performance 11. Spending Agency Budgets & Performance 12. Uganda Bureau of Statistics Statistical Abstracts 13. UN-Water GLAAS TrackFin Initiative Tracking financing to sanitation, hygiene and drinking-water at the national level - Guidance document 14. UN-Water GLAAS TrackFin Initiative Tracking financing to sanitation, hygiene and drinking-water at the national level - Guidance document summary for decision-makers 15. Any other relevant documents 7
8 Figure 1: Overview of proposed methodology to track WASH financing at the national level 8
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