DSA Report of Project Activities: July 1 st to September 30 th, 1998

Transcription

1 DSA Report of Project Activities: July 1 st to September 30 th, 1998 Project Report: Q-6 October 19, 1998 Decentralization Support Activity Project Ministry of Finance & Ministry of Economy Development and Cooperation

2 Addis Ababa I. CORE ACTIVITIES A. Accounts Reform Procedural Reform During the period the DSA the accounts design team prepared an accounts policy paper and an issues paper for submission by the Vice-Minister of Finance to the Civil Service Reform Steering Committee. The accounts design team continued to review of the FGE accounting system. The team completed a draft of the Description of the Ethiopian Government Accounting System (A-13, A-14). This draft summarizes the existing FGE accounting system as organized under the Financial Regulations of The draft will be circulated to federal public bodies and regional finance and economic development planning bureaus for review and comment. Eventually this document will be modified by the reforms and will provide a basis for preparing an accounting procedures manual. During September, 1998, the accounts design team visited Southern Region to review the accounting practices at the region and sub-region level. The team also met with the Director of the Southern Regional Management Institute and discussed what additional financial management training the team could develop on behalf of the RMI for delivery by the RMI to zone and woreda council members. Accounting for AID Professor Jim Yardley prepared a report on Donor Accounting (A-12) as part of his assignment to develop module 2 of the specialist accounts training. Module 2 will cover donor accounting. B. Budget Reform Preparation of Version 2 of the Budget Manual During the reporting period, the budget design team completed a draft of Budget Manual Version 2 (B-7). This draft was presented at a workshop in early July to the staff of the Ministries of Finance and Economic Development and Planning. The workshop produced a number of recommendations to the draft and the design team incorporated these recommendations during the reporting period. The budget design team has revisited the proposed item of expenditure codes and held meetings with staff preparing the national accounts and budget staff from select public bodies to ensure that the codes meet their requirements. The items of expenditure have been 1

3 revised and a memorandum on pending issues regarding the codes has been prepared for review by the Ministry. One recommendation from the July workshop on the budget reform manual is the need for the budget team to review both expenditure and revenue codes. Up to this point, revenue codes were not part of the terms of reference of the team since the budget component was under the Expenditure Management and Control Committee of the Civil Service Reform. The budget design team has thus expanded the coverage of Version 2 of the Budget Manual to include revenue codes and treasury codes. C. Public Investment/Expenditure Reform PIP Data Base Management System Documentation of the PIP data base management system was completed and training on the system was held during the period August Orientation sessions were held for Heads of the Sector, Multilateral and Bilateral Departments; and the PIP Design Team Members. More detailed training was provided for MEDaC staff in the Development Finance and Budget Department and Computer Services. Documentation of the system is covered in 6 reports: Getting Started (T-14); PIP Users Guide (T-15); PIP Technical Guide (T-16); LDS--Language Dictionary System Users Guide (T-17); SAM--Systems Administration Module (T-18); and PIP Sample Reports (T-19). Oromia Regional Assessment Members of the PIP Design Team conducted an in-depth review of the applicability and the capacity to implement the Federal PIP format in the Oromia Region. The assessment included meetings with 7 Regional Bureaus; 7 Zone Departments in Arsi Zone; and the Woreda Office in Dodota-Sire. A report on the assessment was produced and discussed with the Head of the Oromia State Planning Bureau (P-14). Further assessments are planned in other Regions and on completion, a workshop/meeting with the Heads of the Planning Bureaus will be held to decide the best approach for introducing the PIP in the Regions PIP Because work on the PIP and the 1991 capital budget overlapped, priority was given to completion of the capital budget. During August, renewed efforts were made to have Federal public bodies complete the data for the PIP and to enter the data in the PIP data base management system. By the end of September, primary data entry was nearly complete, but work was ongoing on translations of project notes from Amharic to English. The PIP Design Team agreed on the format 2

4 of the PIP report, and by the end of September, considerable progress had been made on analyzing the data and creating the summary tables required for the report. Because of the delays in finalizing the PIP design and manual, it was recognized that the PIP would not serve the purpose of providing the framework for the 1991 capital budget. However, it was agreed to proceed in order for all parties involved to gain experience and to develop a database that would assist in the preparation of the Federal PIP. The Report will provide a basis for feed-back from senior policy makers on the future directions for the PIP. Lessons learned and the data base that has been created will provide valuable input into preparation of the PIP PIP During September, work started on the preparation of the macro-economic and fiscal framework for the PIP. Due to delays in receiving data, it could not be finalized, but the intent is to issue a PIP call letter in October. D. Training 1. In-Country Training In-service training in accounting A primary objective of the accounts reform project in the Civil Service Reform is designing and delivering training programs for building capacity in accounting. Dr. James Yardley provided 48 days of consultancy services in developing the in-service training program for accounts (A-11). The terms of reference of Dr. Yardley s consultancy consisted of three objectives: A. Revision of Module 1 for Specialist Accounts Training B. Training of Trainers in the delivery of Module 1 Specialist Accounts Training C. Initial development of Module 2 of Specialist Capacity Training in Accounts on Aid Management A. Revision of Module for Specialist Accounts Training Dr. Yardley prepared a comprehensive set of training materials for Module 1 in Specialist Accounts training. He substantially revised the draft training manual (T-2) and prepared a trainee (T-8) and trainer version (T-7) of the training manual. He was assisted in this revision by the accounts advisor. Additional training materials were prepared to assist the trainers in delivering the course to guide and test trainees in the material. These materials included: a Guide for Trainers 3

5 (T-10), and Workbook for Trainees (T-9), Overheads for Trainers, (T-12), Form (Overheads) for Trainers, (T-11), and Tests and Solutions for Trainers, (T-13). B. Training of Trainers in the delivery of Module 1 Specialist Accounts Training Dr. Yardley designed and delivered a three week training of trainers course to the resource staff from the Ethiopian Civil Service College and the Regional Management Institutes and training staff from Oromia Region (this region does not have a management institute). Twelve trainers are now ready to deliver the course at four regions and the College. The training program for the trainers consisted of two parts: instructing the trainers in the FGE accounting system; and, instructing the trainers in how to train. Approximately two weeks was spent on the first part and one week on the second part of this task. C. Initial development of Module 2 of Specialist Capacity Training in Accounts on Aid Management The additional effort required to prepare parts A and B of his consultancy meant that Dr. Yardley did not prepare training Module 2 in full. He did prepare a report on accounting for donor funds (A-12) which provides the basis for the development of Module 2. Schedule of training for Module 1 of the specialist accounts training At the conclusion of the training of trainers course, a schedule for implementing the training program in the regions was prepared. The schedule provided for the preparation of the training materials (translation and production) and time for the trainees to familiarize themselves with the regional accounts department. The schedule was discussed and agreed to with the Regional Management Institutes and the Ethiopian Civil Service College. Translation of Module 1 of the specialist accounts training During the reporting period, the DSA Project contracted locally with an individual to translate the accounts training materials from English to Amharic. The project has also placed bids for translation of the materials into Tigrinian and Oromigna. Staff from all of the Regional Management Institutes are also participating in a familiarization program of working with the Regional Finance Bureau accounts departments. Certification of training The President of the Civil Service College requested assistance in developing a plan for certification of training in accounts. Project staff met with the President and discussed various options for certification. Professor Yardley explained the process 4

6 of certification in the United States. It was noted that the DSA training strategy proposed in-service training not professional certification. The President agreed that professional certification for the public sector was not needed at this time and was costly. It was recommended that certification of in-service training be promoted. Recruitment of an in-service training coordinator The growth of the in-service training program is taxing the project staff and their design team counterparts. To promote effective development of training partnership, the project proposed recruitment of a locally hired training coordinator. The position was agreed to by USAID, the Ethiopian Civil Service College and the Ministry of Finance. Terms of reference were prepared and recruitment commenced. 2. External Training Training for Budget Experts from MEDaC and the MoF During the reporting period, Teferi Demeke of the PIP design team and Meskerem Abebe of the budget design team attended the Workshop on Budgeting in the Public Sector held at Harvard University from June 22 nd to July 31 st The project has also identified suitable external training courses for accounts staff and a candidate from the accounts department has been identified. E. Policy Support to the Prime Minister s Office Consultancy on the strategy for policy assistance Policy advising to Minister Gebre-ab Newai in the Prime Minister s office is one of the activities of the DSA project. This activity is implemented with short term consultants. Progress in this area during the reporting period was disrupted because of security concerns for American nationals travelling to the regions. Professor Dwight Perkins of Harvard University was scheduled for a one week consultancy in August to review the DSA s strategy of assistance in the policy area. This consultancy has been rescheduled for February Consultancy on wages and productivity Professor David Lindauer of Wellesley College also cancelled his consultancy scheduled for August and this has been rescheduled for December In addition, Professor Lindauer is preparing a background paper on wages and productivity for Minister Newai. Consultancy on the coffee market Dr. Mike Westlake completed his scheduled consultancy on the coffee sector. He worked in Ethiopia for approximately a month in August-September and will submit 5

7 his final report in October The project negotiated a sub-contract with an expert (Mr. Kerry Muir) on the trends of the international coffee market which was requested by Minister Newai. Mr. Muir s report will be consolidated with Dr. Westlake s final report. II. ASSISTANCE TO NON-CORE ACTIVITIES Cash Management Consultant The DSA project will provide a short term consultant to assist the government in defining the terms of reference for the cash management project. In the previous reporting period, the project negotiated with three consultants who then cancelled their consultancies. Cash management has been added as a core component of the project s extension. During the reporting period, the project prepared a terms of reference for a cash management consultant and has begun recruiting. Briefing Donors and consultants on CSR financial management reforms The project provided a number of briefs to international donor agencies on the reforms in financial planning, budgeting and accounts. The project was requested to review the consultancy reports on donor reporting for the sector investment programs. The project also reviewed the latest revision of the terms of reference for the Financial Information System. III. OUTSTANDING ISSUES Project Extension During the reporting period, the project submitted to USAID a projection of expenditures for the first phase of the project and a budget for the extension. USAID is currently preparing the extension. The project forecasts a surplus of approximately $200,000 at the end of the first two years. The surplus is from savings on advisor emoluments due to delay in placing advisors and from savings in the local training budget. The local training program is now underway and will more than exhaust the budget planned for the second phase. The project would like to reallocate the surplus to local training in the second phase. External Training A member of the budget design team who was sent for training this summer has not returned to their duties. The return is now so delayed that it appears that the staff 6

8 member is not returning. In light of this development, does the steering committee have any recommendations regarding future training policy? 7

9 ANNEX 1 PROJECT REPORTS A. Accounts Reform Code A-1 Report of Visits to Regions: Assessment of Training Needs in accounting, by James Yardley, August 1, A-2 Assessment of Training Needs in Accounting & Accounting Practices, by James Yardley, August 1, A-3 Accounts Reform Project Training Strategy, by James Yardley, August 12, A-4 Financial Reporting End State, by James Yardley, August 18, A-5 Accounting Specialist Training: Training for Accountants in a Self- Accounting Unit, by James Yardley, August 19, A-6 Trip Report to Region 1, January 5, A-7 Trip Report to Southern Nations January 5, A-8 Trip Report to Amhara Regional State January 5, A-9 Trip Report to Dire Dawa Administrative Council, Harar and Somalia Regional States, January 7, A-10 Trip Report to Afar Region Government. Jan. 12 to Feb A-11 Report of Consultancy by James Yardley, 22 June - 22 August, A-12 Donor Accounting by James Yardley, 21 August, A-13 Description of the Ethiopian Government Accounting System: Accounting Cycles and Processes, 28 September, A-14 Description of the Ethiopian Government Accounting System: Government Accounting Form, 28 September,

10 B. Budget Reform Code B-1 Budgeting Basics: Introduction, March 14, B-2 Draft Budget Policy Paper, December 23, B-3 Draft Budget Issues Paper, December 23, B-4 Budget Manual Version 1: Budget Processes & Preparation, January 15, B-5 Defining Public Bodies, June B-6 The Process of Parliamentary Appropriation and Approval of the Budget, June, B-7 Budget Manual Version 2: Budget Classification, Expenditure Codes and Budget Formats, July, C. Public Investment/Expenditure Reform Code P-1 Organization, staffing & Management of the Capital Planning Process at Federal, Sectoral and Regional Levels, May 20, P-2 Public Investment Program Design, May 26, 1997, Updated June 19, P-3 Outline: Macro Frame, August 27, P-4 Policy Paper on the Public Investment Program, December 1997 P-5 Issues Paper on the Public Investment Program, December P-6 Manual for the Preparation on the Public Investment Program, January P-7 System Requirements & Terms of Reference for a Consultant on Data Management for the Public Investment Program February,

11 P-8 Expenditure Programming During the PIP Period March P-9 Developing Indicative Planning Figures for Treasury and External Funding for the PIP Period FY March P-10 PIP Preparation: an Example Based on the Ethiopian Roads Authority March P-11 Indicative Planning Figures, May P-12 Forecast of External Funding Available to Ethiopia, May P-13 A Note on Flexibility and Relationship to the Capital Budget, June, 1998 P-14 Assessment of the Applicability of the Federal PIP Format to the Oromia Regional State, August D. Policy Advice to the Prime Ministers Office Code PA-1 The Potential for Cereal Exports from Ethiopia, by Richard Goldman, October 16, 1997 PA-2 The Results of the Visit to Ethiopia, by Dwight Perkins, December 19, 1997 PA-3 Trip Report: My Visit to Ethiopia by Malcolm McPherson, February 14, 1998 PA-4 PA-5 A Macroeconomic Model for Ethiopia, by Malcolm McPherson & Tzvetana Rakovski, February 7, 1998 A Note on Macroeconomic Management in Ethiopia, by Malcolm McPherson, March 3, 1998 E. Training Strategy for Accounts, Budgets, Public Investment/Expenditure Planning 10

12 Code T-1 The Training Strategy for Accounts, Budget and Financial Planning Under Civil Service Reform. September 10, 1997 T-2 Trip Report: Assessment of the Region 1 Management Institute, November 14, 1997 T-3 Brief on the Training strategy for Accounts, budgets, and Financial Planning. T-4 Trip Report: Assessment of the Region 3 Management Institute, December 3, 1997 T-5 Training Module 1: The FGE System of Accounting. By Frank Cajthaml, March 12, T-6 Meeting on In-Service Training in Financial Management at the Ethiopian Civil Service College, June 16, 1996 T-7 Training Manual (Trainer Version), July 24, 1998 T-8 Training Manual (Trainee Version), July 24, 1998 T-9 Workbook for Trainees, August 3, 1998 T-10 Guide for Trainers, August 3, 1998 T-11 Forms (Overheads) for Trainers, August 3, 1998 T-12 Overheads for Trainers, August 3, 1998 T-13 Tests and Solutions for Trainers, August 3, 1998 T-14 Getting Started: Public Investment Program, June 1998 T-15 PIP Users Guide, June 1998 T-16 PIP Technical Guide, June T-17 LDS Language Dictionary Systems Users Guide, June T-18 SAM Systems Administration Module, June T-19 PIP Sample Reports, June

13 F. Miscellaneous Reports Code M-1 Technical Proposal: Decentralization Support Activity, November 27, M-2 Performance Monitoring Plan, for USAID/Ethiopia, September 30, 1997 M-3 Regional financial Presentation, March 29, 1997 M-4 Government Financial Registration and Report, March 29, 1997 M-5 Using dbase IV with Government Accounting Package: Version 1, December 1, 1997 M-6 DSA Project Deliverables, December 3, 1997 M-7 Previous Version - Basic Job Training Accounts. May 1988 (Amharic) M-8 Schedule of DSA Project Deliverables, February 15, 1998 M-9 Proposed Extension of the Decentralization Support Activity Project, June 12, 1998 G. Project Quarterly Reports Code Q-1 Report of project Activities, February 10 th to June 30 th 1997 Q-2 Report of Project Activities, July 1 st to September 31 st 1997 Q-3 Report of Project Activities, October 1 st to December 31 st 1997 Q-4 Report of Project Activities, January 1 st to March 31 st 1998 Q-5 Report of Project Activities, April 1 st to June 30 th, Q-6 Report of Project Activities, July 1 st to September 30 th,

14 H. Minutes of the Project Steering Committee Code MSC-1 Minutes of the DSA Project Steering Committee, December 4, MSC-2 Minutes of the DSA Project Steering Committee, for the Fourth Quarter (January 1, 1998 to March 31, 1998, June 4 th, MMT-1 Minutes of the Management Team, April 15, MMT-2 Minutes of the Management Team, June

15 Quarterly Report # 6 October 17,