KRA 1: Revenue Management Outputs P-Indicators Indicator Baseline 2011

Transcription

1 KRA 1: Revenue Management Outputs P-Indicators Indicator Baseline 2011 PFMRP IV REVISED MONITORING AND EVALUATION FRAMEWORK Indicator Target 2017 Milestones 2012/ /14 Milestone 2014/15 Output 1.1: Improved quality of forecasting of fiscal aggregates for three years on a rolling Aggregate revenue out-turn compared to original approved budget (PEFA: PI-3) Actual domestic revenue collection was below 92% of budgeted domestic revenue Actual domestic revenue collection is below 94% of budgeted Undertake a study to identify ways of improving tax revenue forecast and action plan by June 2014 basis estimated in no more domestic revenue than one of the last in no more than three years. (PEFA: C) one of the last three years. (PEFA: B) Increase in number and quality of participating MDAs and LGAS with staff capable providing Less than 5% of participating MDAs and LGAS providing accurate, realistic revenue projections in 50% of participating MDAs and LGAS providing accurate, realistic A team of trainers in revenue forecasting developed by June 2014 (milestone to be reviewed in line with recommendations from the study) accurate, realistic 2010/11 revenue revenue projections projections by 2017 Output 1.2: The Government improves efficiency in domestic revenue mobilization both at the policy and the administration levels by updating legal Increase in collection of Total and non-tax revenues as percentage of GDP Total revenue collection was 16.5 % of GDP in 2010/11 Non-tax revenue was 1.2% of GDP in 2010/11 Total revenue collection will be at least 17.8% of GDP by 2013/14- Non-tax revenue will be at least 1.9% of GDP by The study on Non Tax Revenue (NTR)- Integration and Harmonization of Revenue Collection Systems completed by November Submission of a bill to Parliament to Action plan to implement the recommendations from review of non-tax collection developed by June Costed action plan incorporated in FY2015/16 for implementation

2 instruments towards international best practices 2013/14 enact Tax Administration Act for the purpose of establishing a common tax procedure among different taxes collected by Tanzania revenue authority (TRA) by Feb Take policy action to improve revenue mobilization from natural resource sectors by June Review Laws, rules and Regulations for Local Government revenue system to improve LGA s own sources in line with best practices by June, Computerized revenue collection to at least 50% from MNRT by 2016 Tax exemptions as a percentage of GDP 2.2% Target : 2012: 1.9% 2013: 1.6% 2014: 1.2% Review the current system of tax exemptions with the value-added Tax (VAT) regime and amend the VAT Act with a view to be in line with international best practices by November 2014 Output 1.4: Increase of donor funding that flows through the exchequer system by 2016 Percentage of disbursement of direct project fund portfolio via the exchequer 20% 50% National framework for managing development co-operation (Development Cooperation Framework, DCF) reviewed, disseminated and put in operation by March National framework for managing development co-operation (Development Cooperation Framework, DCF) reviewed, disseminated and put in operation by June Revised AMP user guideline clearly communicated to both parties by Dec Analysis of trends of the direct project fund portfolio disbursed via the exchequer system published and shared annually by June

3 KRA 2: Planning and Budgeting Outputs P-Indicator Indicator Baseline 2011 Indicator Target 2016 Milestones-2012/ /14 Milestone 2014/15 Output 2.1: Strengthened capacity of MDAs, RSs and LGAs in implementing program based budgeting by June Presence of Programs-based budget classification (PI-5) The 2008/09 budget formulation and execution is based on administrative and GFS compatible economic classification. There is no CoFoG-based functional classification and budget documentation and reporting system (PI- The budget formulation and execution will be based on administrative, economic and functional classification (Using at least the 10 main CoFoG functions), using GFS/CoFoG standards or a standard data can produce consistent documentation according to those standards (PI-5B) All sub programs, objectives and performance indicators defined by Dec Chart of accounts Modified to accommodate program based budgeting by August MTEF reviewed to make program based budget compatible by September Progress on the PBB Action Plan implementation annually 5C) Increase in number of MDAs and RSs with skilled staff for implementing a program based budgeting In 2011, there are no staff in MDAs and RSs with necessary skills to implement program based budgeting 95 % of MDAs and RSs have staff with necessary skills to implement program based budgeting Completed phased training for all MDAs and RSs by Sept Completed phased training for all LGAs by Sept 2016 Output 2.2: Increased effective utilization of Planning and budgeting tools by 2016 Percentage increase in number of MTEF budgets meeting the MTSPBM requirements by 2016 In 2011, less than 75% of MTEF budgets are meeting the standards of MTSPBM 98% of MTEF budgets are meeting the MTSPBM standards Sixty MDAs, 21 RSs and 133 LGA trained in MTSPBM by June Reviewed MTSPBM to be applied during FY 2013/ MTSPBM reviewed by June Sixty MDAs, 21 RSs and 133 LGA trained in MTSPBM by December

4 Orderliness and participation in the annual budget process by 2016 (PI- 11) i) A comprehensive budget calendar exists but delays are sometimes experienced. MDAs have 6 8 weeks to submit their budget ii) A comprehensive budget circular and budget preparation guidelines are issued but the MDAs ceilings are not always approved by cabinet before issue (B) i)a clear annual budget calendar exists, is generally adhered to and allows MDAs enough time (at least six weeks from receipt of budget circular) to meaningfully completes their detailed estimates on time ii) A comprehensive and clear budget circular is issued to MDAs which reflect ceilings approved by cabinet or equivalent prior to the circular distribution to MDAs(A) Annexes to budget book volume II for Executive Agencies completed by June Action plan on implementation of recommendations on budget legal framework completed by At least 10 PER Main Dialogue meetings held by June 2016 Percentage reduction In 2011, the Actual expenditure Phased training to MDAs, RSs and in deviation of actual percentage of deviated from budgeted LGAs Budget Committees on resource expenditure from deviation of actual expenditure by an prioritization and planning approved budget recurrent expenditure amount equivalent to MDAs budget at vote not more than 10% level compared to approved budget but excluding salary adjustments, contingency and debt service was at 13.7% 4

5 Quality and timeliness of in-year budget report (P-24) by 2016 Comparison to budget is possible only for main administrative headings. Expenditure is captured either at commitment or at payment stage (not both) Reports are prepared quarterly( Possibly excluding first quarter), and issued within 8 weeks of end of quarter There are some concerns about the accuracy of information, which may not always be highlighted in the Classification allows comparison to budget but only with some aggregation. Expenditure is covered at both commitment and payment stages. Reports are prepared quarterly and issued within 6 weeks of end of quarter There are some concerns about the accuracy, but data issues are generally highlighted in the reports and do not compromise overall consistency/usefulness (B) Mechanism for quality assurance of Quarterly Budget Performance Reports (level of detail, timeliness, accuracy, consistency and usefulness to decision makers, as well as for budget transparency to citizens) established by June 2013 reports, but this does not fundamentally undermine their basic usefulness (C+ Increase budget credibility (Minimise deviations in Aggregate Out-turn and Composition Government approves actions for improving budget credibility based on a review of reallocation warrants in the past four years - by Feb Budget reallocation warrants published by September every year. Variance) Output 2.4 Quality and comprehensiveness of Public Access to key Action plan for improving quality Public Access to key fiscal information: Timely publication of key 5

6 budget documentation as well as public access to key fiscal information (shifted from KRA 5.4) fiscal information and comprehensiveness of budget documentation based on PEFA assessment developed by December 2013 fiscal information as listed below: a. Budget guidelines published by December every year b. Executive budget proposal (Vol. I to IV) as submitted to Parliament published by June every year c. Approved budget (all volumes) published by September every year d. Quarterly budget execution report published within a month after end of quarter. e. Year-end budget execution report published by October every year Citizen s budget published by November every year Changes in quality and comprehensiveness of budget documentation reflected in budget documentation KRA 3: Budget Execution, Accountability and Transparency Outputs P- Indicator Indicator Baseline 2011 Indicator Target 2016 Milestones 2012/ /14 Milestone 2014/2015 Output 3.1: Number of Public None( to be % increase in number New public procurement Action plan for implementing 6

7 Strengthened public sector procurement by procurement regulations issued established after baseline study) of Public procurement regulations issued regulations prepared and issued by June 2014 PPA is developed by Dec 2014 June 2015 Number of Skilled procurement staff None( to be established after baseline study) % increase in number of skilled Procurement personnel in PEs Procurement training needs assessment exercise completed by Dec [300] procurement staff trained on public procurement by June, 2017 as per TNA Strategy to develop Procurement Management Unit (PMU) structures in Public Sector by June, Procurement and supplies staff database maintained and updated by December, 2015 Presence of procurement policy draft by June, 2013 PPDs capacity enhanced by June, 2013 None None National procurement policy developed and disseminated to stakeholders i) Motor vehicle and office equipment acquired Stakeholders comments incorporated by June, Twenty (20) members of PPPD staff equipped with skills on public policy formulation, implementation and evaluation by June, National procurement policy draft finalized by Dec PPPDs capacity enhanced by June National procurement policy developed and shared by December, National procurement policy ii) Short training for strategy developed and National procurement policy None 20 members of PPD staff 7 implemented by June Printing and uploading the NPP

8 and procurement law synchronised Stakeholders acquainted with the National procurement policy National procurement policy strategy in place by December, 2013 None None None conducted Public Procurement Act 2011 reviewed 800 Stakeholders acquainted with the National procurement policy National procurement policy strategy implemented on the website by June, National procurement policy and procurement law synchronised by June, Monitoring the implementation of the National procurement policy by June, Evaluation and feedback of the implementation of the National procurement policy by June, Stakeholders acquainted with the National procurement Policy by June, Strategy on raising stakeholders awareness on contract award, complaints/disputes developed and implemented by June 2016 Output 3.2: Strengthened capacity of MDAs, RSs and LGAs in Cash management by 2015 Increase in number of staff with adequate skills on cash management 10 staff with cash management skills 610 staff with cash management skill staff of MDAs and LGAs Trained on cash Management using standardized materials by June The 2012 supervision mission noted that the milestone may need to be reviewed and aligned after the East AFRITAC recommendations on Cash and Banking Arrangement Mission. ACGEN to confirm if this is done. 8

9 Decrease in the The aggregate number 3938 bank accounts will Six bank accounts operated by aggregate number of of bank accounts be closed by December each LGAs by December 2013 bank accounts operated by LGA are 2013 operated by LGAs by 4,736 in Strengthen monitoring of payment arrears ACGEN to present a monthly report on payment arrears to ceiling committee effective Dec 2013 Output 3.3: Strengthened public debt management capacity by 2015 Recording and management of each cash balance, debt and debt guarantees (P1-17) by 2016 i) The various databases containing debt data are currently in the process of being merged. Data quality is considered fair and minor reconciliation problems occur. For the data entered in CS DRMS, statistical reports are regularly produced (B) i) Domestic and foreign debt records are complete, updated and reconciled on a monthly basis with data considered of high integrity. Comprehensive management and statistical reports (cover debt service, stock and operations) are produced at least quarterly (A) Debt management policy developed and shared by June Capacity of 50 Public Debt management staff enhanced to undertake DSA on external, domestic debt and contingent liabilities by June Review of Government Loans, Debt Management department established by June 2016 Indicator: DSA, risk analysis, Revised Act (ceiling provisions annually) ii) The balances of several government bank accounts in commercial banks are not consolidated, though there is a plan to do so (D). ii) Calculations and consolidation of most government cash balances take place at least monthly, but the system used does not allow consolidation of bank balances (C). Guarantees and Grants Act by June

10 iii) Contracting of loans and issuing guarantees is approved by Minister of MOF in line with rules, but there are no ceilings (C) iii) Central Government s contracting of loans and issuance of guarantees are made within limits for total debt and total guarantees (B). Management of risk emanated from Contingent liabilities created by PA & OB's by June Quarterly detailed report on public debt published on disclose on its website with information on both domestic and external debt, all outstanding loans guarantees Quarterly monitoring of contingent liabilities of PA&OBs Annual monitoring of guarantees approved by GoT for PA&OBs and for PPP financed projects Detailed and quarterly debt report prepared and published. granted by the GOT, all liabilities of those PA&OBs owned by the GOT, and outstanding borrowings by PA&OBs from the Public Pension Funds with GOT guarantee Output 3.4: Improved integrity and content of government financial statements and the migration from IPSAS cash to IPSAS accrual Quality and timeliness of annual financial statements (PI-25) i) Central Government final accounts include revenue, expenditure and bank balances, and since 2007/08 data on most financial i) Central Government final accounts disclose full information on revenue, expenditure and bank balances, financial assets and Completed review of the IPSAS guideline issued by PMORALG in 2008/09 to accommodate the recent IPSAS updates by June 2013 (MOVED TO PMO-RALG) Public Finance Act of 2001 and Regulations reviewed to address migration to IPSAS accrual by June Consolidated template of financial statements to include MDAs, Rs, LGAs, Controlled 10

11 accounting for all government accounts is progressing in accordance with plans. assets and liabilities are disclosed with few exceptions. (B) ii) Financial Statement are submitted for external audit within 6 months of the end of fiscal year. (A) iii) Cash basis IPSAS has been applied since 2007/08. (B liabilities (A) ii) Target for staff and iii) (ii)financial Statements are submitted for external audit within 6 months of the end of fiscal year. (A) IPSAS applicable to all financial statement Training to the MDAs, RSs and LGAs accounting officers to develop awareness on IPSAS Accrual by June Capacity building to 250 staffs from MDAS and RSs and Embassies to enhance skills in IPSAS accrual by 2014 entities &GBEs developed by June 2016 Stage of the transition confirmed against approved action plan. Reports of the Auditor General confirm improvement The decision to transition all government accounts to full accrual accounting has been made but detailed action plan has not been finalized or approved Government accounts received an adverse opinion. Central Government final accounts include revenue, expenditure and bank balances, and since 2007/08 data on most financial assets and liabilities are disclosed with few exceptions. (B) IPSAS Accrual migration action plan has been completed approved and is in process of execution. Implementing migration plan as targeted. Quality and integrity of government financial statements is improved as evidenced by the reports of the Auditor General Financial Statements are submitted for external audit within 6 months of the end of fiscal year. (A) government accountants in MDAs /LGAs trained in IPSAS accrual and accrual modules for Epicor by September Plan for migration towards IPSAS Accrual accounting is completed by December Plan is approved for execution and stakeholder information sessions have been completed by January All legislative and policy supports decisions have been identified by December Milestones for the transition have been identified and approved (e.g. Public Finance Act.2001 and Regulations amendments) by October Consolidated accounts with IPSAS Accrual by June ACGEN to compile and produce financial statements disaggregated on the basis of economic classification and by sectors 11

12 Financial Statement are submitted for external audit within 6 months of the end of fiscal year. (A) Cash basis IPSAS has been applied since 2007/08. (B) Output 3.5: Improved accountability in management of Government Assets for supporting migration to IPSAS Accrual Number of MDAs which are now reporting their financial position through IPSAS Accrual Number of MDAs which have been valued and uploaded in the EPICOR None 20 MDAs (28%) have been valued and uploaded in EPICOR % increase of MDAs reporting their financial position through EPICOR asset management module by 2016 (Targets to be set after migration action plan towards IPSAS Accrual Accounting is completed) % increase of MDAs valued and uploaded in EPICOR by June 2016 (Targets to be set after migration plan towards IPSAS Accrual Accounting is completed) Asset Management (tracking) software installed, tested and users are trained on use of software by June Uploading of asset information for 70 additional MDAs in SAGE by June GAM capacity enhanced on asset management function by June Asset Management Policy and Strategy developed and submitted by June Valuation of Government assets in 34 MDAs and RSs completed by June 2017 KRA 4: Budget Control and Oversight Outputs P-Indicator Indicator Baseline 2009 Indicator Target 2016 Milestones 2012/ /14 Milestone 2014/15 12

13 Output 4.1: Increased coverage and quality of the internal audit functions by 2016 Percentage increase in unqualified opinion in the external audit report for MDAs and LGAs 54% of MDAs and 65% LGAs obtained unqualified opinion in 2009/ % MDAs and 75% LGAs will get unqualified opinion in 2015/2016 % of IAUs conforming with IAGD guidelines which are based on international standards Internal audit manual/guidelines, standards and quality assurance improvement programme, which complies with international standards and best practices, will be in place by June Internal auditors trained Quality Assurance and Improvement Programme Procedures Manual by June Independent quality assurance assessment of (Internal Audit Units) IAUS in MDAs and LGAs completed by June 2016 Effectiveness of internal audit (PI-21) i) Internal audit function exists in most MDAs, and it is estimated that 20 percent of staff time is allocated to system based reviews and high risk areas (C) ii) Reports are issued for Most MDAs but these are not copied to NAO (C) iii) To some i) Internal audit is operational for all Central and Local government entities, and generally meet professional standards. ii) At least 50% of staff time is allocated to system based reviews and high risk areas. iii) Reports adhere to a fixed schedule and are distributed to the audited entity, Ministry of Finance and NAO (B) The Pilot stage of Computerised Audit will be finalized by June Effective IAU and audit committee established and internal auditors conduct compliance audit and evaluate effectiveness of internal control in MDAs and LGAs by June The Pilot stage of Computerised Audit will be finalized by June Computerised Audit in place by June

14 degree actions are taken by management on major issues but often with delays (C) iv) Action by management on internal audit findings will be taken within one month after issuing a report and should be comprehensive across Central and Local government entities (B) Technical Audits conducted for 20 Projects in Technical Audit conducted by Technical Audits are conducted for 70 Projects by June, 2016 Ensure agreed corrective measures in response to audit findings are taken Improve adherence to financial regulations and controls - Continue to monitor compliance with IA benchmarks Number of staff equipped with skills on risk-based audit 31 (10%) IAUs in MDAs and LGAs have submitted quarterly reports with reference to CAG follow-up 100 staff trained in risk based internal audit % of MDAs and LGAs have submitted quarterly reports with reference to CAG follow-up 550 internal audit staff are trained in risk based audit Implementation status of corrective measures for internal and external audits (CAG recommendations) submitted by all the IAUs in MDA/LGA to IAGD on quarterly basis by June internal auditors and other stakeholders trained in risk management process and risk 14

15 Capacity enhancement on guidelines for Fraud Risk Management, Internal Control, Risk management Monitoring and Evaluation 300 Accounting Officers, Head of Departments, Audit Committee members and internal Auditors on the guideline for Fraud Risk management, Internal control, Risk Management Monitoring and Evaluation Study based audit by June, To train 300 Accounting Officers, Head of Departments, Audit Committee members and internal Auditors on the guideline for Fraud Risk management, Internal control, Risk Management Monitoring and Evaluation by June Study to assess the ICT needs for effective internal audit management and control by June recommendations to inform next course of action Output 4.2: Strengthened External audit functions by 2016 NAO reaches AFROSAI-E Level 3 Increase in number of NAO staff capable of issuing audit reports as per Level 2 NAO did not reach at level 3 in 2010 as planned because of lacking two criteria. Out of 10 criteria, NAO cleared 8criteria. Other 2 criteria are (1) NAO staff should not be Civil Servants, and (2) Appointment of CAG by the Parliament. The 2005 assessment scored NAO as level 1. A committee was formed to conduct NAO to reach Level 3 by 2016 Capacity of NAO audit service strengthened by % of Auditors to have be accommodated in own offices 800 Auditors trained on Risk Based Audit and 400 in IT audit Five value for money audit reports to be produced each year by Auditors trained on Risk Based Audit and 200 in IT audit by Two (2) Value for Money audit reports to be produced each year by NAO staff without technical assistance from external consultant by Auditors trained on international standards of auditing and full adoption of International Audit Standards by Auditors trained on international standards of auditing and full adoption of International Audit Standards by % of auditors are moved from auditee premises to NAO offices by

16 international technical and professional practices Value for Money Audits to be conducted by NAO staff with minimum technical support by external Consultant legal review and will submit a report on needs of legal amendments to reach at level 3. The committee members visited South Africa, Kenya and Uganda. Most Auditors are accommodated in Auditees premises NAO staff without technical assistance from external consultant 800 auditors trained on International standards of auditing and Full adoption of International audit standards Adoption and application of 100 Auditors trained on Risk Based Audit International auditing Standards in all audit assignments One VFM report is produced by NAO staff each year without technical assistance by external Consultant 200 auditors trained on International standards on auditing (ISSAI, IPSAS.ISSAI,IFRS,ISA) Number of MDAs. LGAs and Parastatals reached for financial audit All 86 MDA, 134 LGAs and about 122 Parastatals were covered by Financial All MDA, LGAs and Parastatals are covered by Financial Audits by Closing of books of accounts for Parastatals harmonized and audit modalities agreed by Closing of books of accounts for Parastatals harmonized and audit modalities agreed by

17 Audits. Scope, nature and follow-up of external audit (PI-26) by 2016 Increased application of ICT in auditing and connectivity (by Wide Area Network ) of NAO offices i) In the last three years, the audit report, including consolidated financial statements of government, was presented to the legislature six months after the receipt of financial statements (B) ii) No electronic system currently exists to consolidate and easily access data regarding outstanding audit findings and recommendations, including their age. 20 staff trained on ICT application in auditing NAO offices are not connected i) Audit reports are submitted to the President within 9 months (per the Public Audit Act) of after the end of the financial year. ii) Fully operational and easily accessible database to support Government s efforts to reduce outstanding matter(findings and recommendations). 600 Auditors trained on Audit Commanding Language (ACL) and other audit based software Audit methodology in line with ISSAIs guidelines adopted by June Scoping study to ascertain the parameters of the outstanding matters database is completed by November Establish a database that will separate findings (monetary and non monetary) and recommendations including by age, and record follow Up actions (ice matters closing) by December Auditors trained on audit commanding language (ACL) and other audit based software by NAO Headquarter is connected to 10 Regional offices using WAN by Scoping study to ascertain the parameters of the outstanding matters database is completed by November Two of five Team Mate modules applied in auditing by October 2015 One TeamMate module (Electronic working papers) is applied in auditing NAO Headquarters is connected by all 21 regional offices using WAN by 2016 All five Teammate 17

18 modules applied in auditing by 2016 Output 4.3: Improved transparency on audit reports (central, local and parastatal levels) to strengthen scrutiny and accountability. Citizen Audit Report (simplified audit reports accessible by the general public) are published 4 Consolidated audit reports (central, local, POABs and VfM/Performance) are publicly available on the NAO website after tabling. NAO set up a booth at Trade Fair (Saab Saba) and Public service week where general audit reports are distributed to visitors. All General audit reports are accompanied by a citizens audit report (short summary of the key audit findings and recommendations, in both Swahili and English) and are available in a timely manner (within 4 weeks after tabling) on the NAO website and at NAO offices all over the country by Citizen audit reports published annually for the 5 General audit reports two months by June 2017 Output 4.4: Improved performance of parastatals by June Increase in number of Parastatals implementing performance contracts by June Parastatals (TRL & TPA) were implementing Performance contract in 2009 All Parastatals will be implementing Performance Contracts by June Ten Pilot Parastatals Signed Performance contracts with TR by June Ten Pilot Parastatals Signed Performance contracts with TR by December 2014 Oversight of aggregate fiscal risk from other public sector entities (PI-9) by 2016 There is weak Monitoring of Parastatals as their final number is still to be established and All Parastatals will submit fiscal reports including audited account to TR and consolidates overall Database on Parastatals set up and functioning by December M&E mechanism for measuring Parastatals compliance rate set

19 Increase compliance rate on TR s Act by Parastatals by June 2016 their consolidated overview is missing Compliance rate on TR s Act by Parastatals fiscal risk issues into an Annual TR Financial Statements (B) Compliance rate on TR s Act will be 100% by June 2016 up, reviewed and implemented by June is below 70% in 2010/11 (PI-9: D) Increase in Revenue from Parastatals as percentage of Approved domestic revenue collection Revenue from Parastatals was 0.55 % of total approved domestic revenue collection in 2010/11 Revenue from Parastatals will be 4% of total approved domestic revenue collection by June New TR's Bill presented to the Parliament by June Parastatals Acts Reviewed to be in line with the New TR Act by June TR s Office Capacities enhanced by June 2015 Output 4.5: Strengthened capacity Number of PAC members trained Evidence of PAC members making Capacity building interventions to PACs conducted annually of oversight functions follow-up on financial of Parliamentary audit recommendations Accounts Committee in in the respective MDAs Tanzania Mainland and LGA Output 4.6: Improved public procurement performance by PEs by 2015 Average level of compliance of i) all procuring entities (for follow-up audits) and ii) the top 20 procuring entities with the (revised) Procurement Act Old target (63% +75%)/2=68% i. 66 % of tenders under open tendering process were advertised in fiscal year 2006/2007 (B) Target will be based on new set of indicators +20% of baseline (new BL by October 2012) i) Accurate data on the method used to award public contracts exists Revised procurement implementation and monitoring tools issued by March PPRA operational and outreach Annual PPRA audit results confirm positive trend on a yearly basis New Public Procurement Act, 2011, Regulations and Tools disseminated to major PEs and other key stakeholders by 19

20 2011 Competition, value for money and controls in procurement (PI 19) Increase in number of PEs using e- procurement system (PMIS) ii. Using less competitive procurement methods is allowed with justification. PPRA audits in 2008/09 show that the great majority of contracts now use the correct methods (B) iii. A comprehensive complaints mechanism operates, but for unknown reasons the number of complaints has declined (B) Currently, 203 PEs are using PMIS (Procurement Management Information System) and shows that more than 75% of contracts above the threshold are awarded on the basis of open competition(a) ii) Other less competitive methods when used are justified in accordance with clear regulatory requirements (A) iii) A process (defined by legislation) for submission and timely resolution of procurement process complaints is operative and subject to oversight of an external body with data on resolution of complaints accessible to public scrutiny (A) 393 PEs will have a functional PMIS and pilot e-procurement system will start functioning by Nov capacity strengthened by June 2014 December Procurement plans aligned with MDAs, LGAs and parastatal Institution Strategic plans by June Value for money procurement enhanced through Framework contract in procurement of common use items and services by June PPRA operational and outreach capacity strengthened by June All (493) PEs will have a fully functional PMIS as a reporting tool for procuring entities to report back to PPRA by Nov e-procurement will start functioning as pilot stage by Nov 2016 Increase in number of PEs reached for procurement audit Currently 330 PEs have already been audited. In June 2012 all 393 PE s will be audited, then beyond F/Y 2012/2013 will be Follow-up Completion of audits of one-third of all PEs annually (current total PEs: 493) Follow up audit of 100 PEs to be 20

21 Audits (should be repeatedly process especially on Top 20 PE s done annually by Annual Procurement Performance Evaluation Report prepared and published Annually Output 4.7. HCMIS entrenched in service delivery points in selected sectors and its sustainability attained HCMIS ownership at SDP for effective accountability, HR Management, Budget expenditure and Payroll in the relevant sectors. Human error and checks and balances reinforced in the management of payroll through improved systems User requirements, gap analysis and Infrastructure requirements identified for 160 SDP undertaken by October Installation of HCMIS at 160 SDP by June 2016 KRA 5: Change Management and Programme Monitoring and Communications. Outputs P-Indicator Indicator Baseline 2011 Indicator Target Milestone ( ) Milestone (2014/15) Output 5.1: Coordinate Integration, interfacing and rationalization of Government financial systems. Interface central and local Government financial management system and tools MDA /LGA IFMIS systems are not harmonized and or integrated and are not being centrally DFISM with overarching technical control for all government IFMIS systems is fully staffed and operational Integration/ Interfacing plan is engaged and series of planned actions are being executed and completed by October, 2015 managed. Stand alone software continues to be acquired and implemented. ICT Infrastructure capable of supporting approved systems architecture is in place All Government 21

22 financial systems ( SBAS, PlanRep, RIMKU, IFMS) have been integrated and interfaced and financial data is smooth exchanged between systems. 162 LGAs, 25 RSs and 3 institutions under PMO RALG connected with IFMIS by Dec.2015 Evidence of analytical reports generated from the system available at MDAs and LGAs level 133 LGAs are connected to the IFMS 133 LGAs, 21 RSs and 3 PMORALG institutions could produce. Operation Reports, and Management Reports 167 LGAs, 25 RSs and 3 institutions will be connected to the IFMS 162 LGAs, 25 RSs and 3 Institutions will be able to produce; Operation Reports Management Reports Final account reports (Financial Statements), and Other reports like Council financial and development report s (CFR & CDR), Mkukuta MoF IFMS (EPICOR) linked to PMO-RALG IFMS to the immediate capture of the Approved Budget and all Exchequer transfers to RSs and LGAs respectively by June Completed capacity building to key users of IFMS from the new 35 LGAs, RS and PMORALG institutions by June IFMS infrastructure installed to new 35 LGAs, RSs and PMORALG institutions and connected to central server at Dodoma and MoF by Dec IFMS infrastructure installed to new 35 LGAs, RSs and PMO-RALG institutions and connected to central server at Dodoma and MoF by Dec Audit of IFMS in LGAs conducted by June

23 Output 5.2: Utilization of EPICOR modules Increased from seven to ten Upgraded version of EPICOR with ten modules in-place. The new modules are: Multi Site Management. Replication Server License. Advanced Financial Report Designer EPICOR module are not fully utilized strategies implementation report by target, etc. Upgraded EPICOR with ten modules in-place EPICOR system upgrade completed by December ACGEN staff capacity enhanced by December Training for IFMS end users on the upgraded modules conducted by December Output 5.3: All software development and module upgrades are coordinated with the overarching plans for ICT integration. Number of systems that are linked into an IFMIS platform and available for common use ICT Planning is single purpose and not coordinated with other harmonization activities All software development is integrated within a fully rationalized ICT architecture FISM is operationalized and controls are put in place to manage software acquisition and development by FISM staff capacity enhanced by June, Output 5.4: Improved communication and public access to key fiscal information to stakeholders Public access to key fiscal information: 1. Annual budget documentation, 2. In-year budget execution reports, 3. Year-end financial statements, The government makes available to the public 5 out of 6 types of information, but two of them are not complete: in-year budget execution reports and contract awards. The government makes available to the public 5 out of 6 types of information- (A) Special surveys undertaken within the last 3 years have MoF Communication Strategy developed and implemented by June Support the Budget Division and Policy Analysis Division to publish the relevant budget documents and fiscal information Develop an action plan to modernise MoF website (structure, content and user friendliness) by 23

24 4. External audit reports, 5. Contract awards, 6. Resources available to primary service delivery units (PI-10) Resources available to primary service providers are not published (A) Special surveys were undertaken within the last three years, but their results and methodologies used have not been seen (D) demonstrated the level of resources received in cash and in kind by either primary schools or primary health clinics covering a significant part of the country OR by primary service delivery units at local community level in several other sectors June 2015 (C) Output 5.5: Coordination and Standardization of PFM Training Achieved. Number of trained staff in PFM Quality of service delivery from trained staff. None None... of staff trained Presence of trained staff providing quality service Capacity building Plan developed and shared with key Stakeholders by Feb An impact assessment of PFM training is conducted to measure staff performance following various trainings by June 2015 Output 5.6: PFMRP component Managers are being guided by detailed multi-year operating plans. Program components are completed in sequence based on priority and the reform is keeping pace with the agreed milestones PFMRP component activities are not always derived from and/or described within the context of detailed component operating plan Relevance, sequence and costs are difficult PFM activities are governed by multi-year component operating plans that provide context for relevance, sequence and cost All activities are presented for inclusion in PFMRP annual work plan are presented within the context of a detailed multi-year operating plans annually to assess 24

25 Output 5.7: PFM activities are effectively planned and implemented Component managers have capacity to develop and manage strategic operational plans. Component Component managers have not had the necessary level of capacity development in strategic planning and results based management 150 staff from KRAs trained on change management and strategic planning. 60 staff trained on RBM methods Training on Change Management and Strategic Planning completed by December Results Based Management training has been delivered to 60 PFM RP Component managers by June 2015 managers have developed capacity in the use RBM methodology Output 5.8: Effective coordination of activities and support provided to the program implementers Secretariat support is facilitating program performance. Under resourced secretariat with short term contract Functional secretariat providing a range of needs based program supports Secretariat work plan is completed annually alongside the PFMRP annual work plan PFMRP coordination secretariat facilitated annually. Output 5.9: PFM Program oversight and review is being guided by clearly defined Milestones derived from an agreed M&E framework, Performance expectations for each component are clearly defined and understood by all stakeholders Performance expectations are not clear and the absence of context makes qualitative aspects of program oversight difficult. Approved M&E framework sets out clear and relevant performance expectations Annual review and amendment of the M&E framework to ensure ongoing congruence and relevance annually Output 5.10: All major PFM reforms have been coordinated with and informed by the relevant government and DP stakeholder groups Stakeholders have knowledge of reforms and change initiatives that will impact on them or their units and are collaborating or Coordination of major reforms with stakeholder groups is not prioritized. Significant information Major PFM reforms are all supported by a communication / collaboration strategy which ensures that all stakeholders have the PFM information session completed to disseminated results of: ICT mapping exercise, ICT Harmonization Integration Plan by March 2013; IAG action plan, ACGEN s Plan to transition to Accrual Accounting 25

26 supporting implementation. Stakeholders have adequate time to develop the necessary adaptive capacity. and capacity gaps exist. opportunity to provide input and to receive necessary information in time to adapt to the change Dec.31st each year Minimum of one PFM reform information day conducted for CSOs, DPs and GoT during Public Service day annually Change resistance is minimized Output 5.11: PFMRP implemented efficiently and effectively through result based management approach. Comprehensive annual work plan and budget Progress report on place on 15th day after end of quarter Strong and effective dialogue structure Number of coordinated dialogue meeting Approved by August annually Progress report in place Weak dialogue structure 6 meeting Work plans and budgets are approve by June annually Funds are released by July 1/annually Periodic report prepared quarterly Presence of strong and effective dialogue structure as per MoU. Working Group and Joint Steering Committee meetings are attended by KRAs decision makers PFMRP implemented according to annual work plan and milestones are being met Annual supervision mission are conducted by Sept 30 of each year commencing Independent program evaluations are completed towards end 2014/ Dialogue structures are working as evidenced by combined DP/GoT surveys/independent evaluations to ensure effective program implementation. KRA teams are meeting monthly schedule. 26

27 Donor representatives are well informed on reform initiatives. Output 5.12: National systems and processes for intergovernmental transfers to LGAs Streamlined and rationalized System and processes are documented with target timelines for each process step. No overall view of systems and processes for intergovernmental transfers. Flow of funds and information on the same is not in parallel and tied to one system. In 2010 it took 7days for funds to reach MDAs and RSs (after receipt of complete set of fund request). Effectiveness and efficiency of the system has increased Number of key actions implemented (Target to be set after mapping exercise) Decreased number of days of fund transfer time to RSs LGAs and MDAs TORs (for Streamlining and rationalizing National systems and processes for intergovernmental transfers to LGAs) completed by July Mapping commences September Review and mapping of the systems and processes for intergovernmental transfers initiated with inception report finalized by October Reports to be produced annually by end September. Share of Non-salary (OC+DEV) funds released to RSs and LGAs by end Q3, as percentage of the Resources budgeted and available (OC+DEV) for the year 42.1% of resources available to RSs and LGAs at Q3 70% of resources available to RSs and LGAs at Q3by Comprehensive and sequenced action plan on a recommendation of the mapping exercises on the intergovernmental transfers finalized by June Output 5.13: Strengthened Public Financial Management Support to jointly (DPs, ZNZ and MoF) agreed Strategic plan on PFM reform in Zanzibar 27

28 Reforms in Zanzibar by 2016 KRA 6: LGA REFORM SUB PROGRAMME Outputs P-Indicator Indicator Baseline 2011 Indicator Target Milestone ( ) Milestone (2014/15) Output 6.1: Strengthened capacity of local government authorities to collect revenue by 2015 Local Government Own source revenue to GDP Actual revenue collection by LGAs 2010/11: Tsh 158,280 million and 0.46 % of GDP Local Government Own source revenue will be 1.5% of GDP Completed assessment and evaluation of revenue potential for all major own sources of revenue to all LGAs by June Local Authorities Tax Establishment of known and clear revenue data base by each source of revenue, presence of trained personnel and a clear follow up arrangement at PMORALG and RS levels by June, 2015 administration teaching and practice modules established and TOT completed for all finance management staff at the regional level by June PMO - RALG staff and Finance Management Officers at RS to be trained in tax revenue plans and budgets to spearhead LGAs tax reviews and reforms. June Four (4) Revenue Accountants, 3 Council management team members and 1 FMO from each LGA and RS are trained on own source revenue management by June Local Government legislation reviewed by 2016 (Act No. 7, 8 The last amendment of the Local Government Finances Local Government Finances Act No Completed a study on the effectiveness, relevancy and A bill for an act to attend the Local Government Finances Act No.9 of 1982 is finalized and 28

29 and 9) Act No.9 of 1982 was done in year The act does not adequately address issues of equity, change of technology and other reviewed by 2014 sufficiency of the provisions of the Local Government Finances Act No. 9 by June 2014 submitted to the Cabinet by Nov Improvement of Financial management in LGAs by June 2015 administrative issues to enhance local revenue mobilization considering the present and future LGAs circumstances. Output 6.2: Strengthened capacity of LGAs for MTEF preparation by 2015 Comprehensiveness of information included in budget documentation (PI-6) Various studies in fiscal transfers and decentralization process in Tanzania indicate that Budget allocation to LGAs reflects a more inequitable distribution of resources to LGA, and that the Currently there no sufficient information on LGAs revenue planning and budgeting which is included in the budget documentation. Currently budget allocation formula follow, population, land area and poverty level, Supportive and verifiable revenue data and information to be included in the LGAs budget documentation. Budget allocation formula reflects resource needs, distances from service facilities, special area diseases, number of projects to be implemented, number of orphans etc Recommendations of various studies on LGAs budget allocation formulas reviewed by June Agreement on improvement of LGAs budget allocation formulas among the Sector Ministries (PMO-RALG, MOF, PO-PSM and Sectors) completed by June, Proposal for budget information to be included in the Budget guideline to be submitted to National Budget Guideline committee by October annually All LGAs budget allocation formulae reviewed by June, All reviewed LGA budget allocation formulae applied in the budget preparation during 2014/15 for the FY 15/16 budget Monitoring arrangements in place for measuring deviations in actual releases against all formula-based allocations to LGAs for FY 15/16. allocation formulae 29

30 are not fully applied. There is a need to revisit all the existing budget allocation formulae to clearly reflect equitable allocation of financial resources by June Output 6.3: LGA (and LLGs) receive 40% of development budget allocation within five months of financial year and 90% of development budget within 10 months of financial year by June 2017 Output 6.4: Own revenue mobilization by LGAs doubled in three years by June 2017 Output 6.5: PFM capacity in Improve the fiscal transfer mechanism and monitoring of Fiscal Transfers from Central Government to LGAs Monitoring of resource flows from LGAs to LLGs Tax payers database (i-tax) rolled out across all LGAs Create a cadre of regional PFM champions