Kaduna State Government

Transcription

1 Kaduna State Government Change Programme 2011/2012 Annual Performance Report Bureau of Public Service Reform Office of the Head of Service May 2013

2 Table of Contents ACRONYMS AND GLOSSARY OF TERMS... 3 EXECUTIVE SUMMARY INTRODUCTION CHANGE PROGRAMME DEVELOPMENT AND OBJECTIVES SUMMARY OF CHANGE PROGRAMME STAKEHOLDERS PURPOSE AND PROCESS OF THE PERFORMANCE REPORT ANALYSIS OF PROGRESS AND PERFORMANCE PUBLIC FINANCIAL MANAGEMENT Summary of Progress and Achievements Key Lessons Learned PUBLIC SERVICE MANAGEMENT Summary of Progress and Achievements Key Lessons Learned POLICY AND STRATEGY (INCLUDING M&E) Summary of Progress and Achievements Key Lessons Learned CHANGE PROGRAMME INSTITUTIONAL ARRANGEMENTS SUMMARY OF PROGRESS AND ACHIEVEMENTS RECOMMENDATIONS FOR ADJUSTING THE CHANGE PROGRAMME PUBLIC FINANCIAL MANAGEMENT General s Specific Dimension s PUBLIC SERVICE MANAGEMENT General s Specific Dimension s POLICY AND STRATEGY (INCLUDING M&E) General s Specific Dimension s PROGRESS AGAINST PLAN PFM Dimension 1: Budget Preparation Dimension 2: Revenue Assessment and Collection Dimension 3: Internal Control and Internal Audit Dimension 4: Expenditure Control and Cash Management Dimension 5: Debt Management Dimension 6: Accounting and Reporting Dimension 7: Payroll and Human Resource Management Dimension 8: IFMIS/BATMIS Dimension 9: Capacity Building at the State House of Assembly Dimension 10: Regulatory Framework Dimension 11: External Audit Dimension 12: Public Procurement P&S/M&E Dimension 1: Development of Medium Term Rolling Plans Dimension 2: Working to Support Political Engagement Dimension 3: Building the Capacity of the Central Ministry of Economic Planning Dimension 4: Spreading MTSS Approaches across Government Dimension 5: Increased Use of Performance Management Processes in Assuring Impact and Effectiveness of Policies, Strategies and Programmes Dimension 6: Increased Availability of Data Analysis and Information for M&E, Policy Formulation and Strategic Planning PSM Dimension 1 mandates, statutory functions and the structure of Kaduna state public service

3 2 Dimension 2 Public service policy and management of public service reform Dimension 3 Public Service Performance Management- Corporate Plans and Service Charters Dimension 4 ICT Policy and Implementation Dimension 5 Human Resources Management Information System and Payroll Database Dimension 7 Employee Performance Management System Dimension 8 Manpower Development Policy and Management System Training and Capacity Building Dimension 9 Salary and Pension Policy... 69

4 Acronyms and Glossary of Terms Term Definition BAC Body of Appeal Commission BATMIS Budget and Treasury Management Information System BC Budget Calendar BIR Board of Internal Revenue BPSR Bureau of Public Service Reform COA Chart of Accounts COFOG Classification of Functions of Government CSO Civil Society Organisation DMC Debt Management Committee DMD Debt Management Department DMO Debt Management Office DPRS Department of Policy, Research and Statistics DSA Debt Sustainability Analysis EPA Eleven Point Agenda ESSPIN Education Sector Support Programme in Nigeria ExCo Executive Council HRMIS Human Resources Management Information System ICT Information and Communications Technology IFMIS Integrated Financial Management Information System GDP Gross Domestic Product KADSEEDS Kaduna State Economic Empowerment Development Strategy KDSG Kaduna State Government KSDP The Kaduna State Development Plan KDSV Kaduna State Vision 2020 KPI Key Performance Indicator MDA Ministries, Departments and Agencies MDG Millennium Development Goals MoA Ministry of Agriculture MoE Ministry of Education MoEP Ministry of Economic Planning MoH Ministry of Health MoJ Ministry of Justice MoF Ministry of Finance MoST Ministry of Science and Technology MTEF Medium Term Expenditure Framework MTSS Medium-Term Sector Strategy M&E Monitoring and Evaluation NGO Non Governmental Organisation OAcG Office of The Accountant General OHoS Office of the Head of Service PATHS2 Partnership for Transforming Health Systems 2 PEFA Public Expenditure and Financial Accountability PFM Public Financial Management PRS Planning, Research and Statistics 3

5 Term PSM P&S SAVI SBS SHoA SGCBP SPARC SPRs SSMP SWOT TOR Definition Public Service Management Policy and Strategy State Accountability and Voice Initiative State Bureau of Statistics State House of Assembly State Governance and Capacity Building Project State Partnership for Accountability, Responsiveness and Capability Sector Performance Reports State Statistical Master Plan Strengths, Weaknesses, Opportunities and Threats Terms of Reference 4

6 Executive Summary In order to deliver the reform Agenda to the public and assure successful implementation of the Kaduna State Development Plan, the public service machinery in Kaduna state must be fit for purpose and effective in carrying out its responsibilities. In order to ensure this is achieved, Kaduna State Government developed a governance reform programme, based on a comprehensive self assessment of its strengths and weaknesses. In February 2012, another set of self assessment was carried out on the three thematic reform areas of the State Government to access progress made and challenges towards achieving set milestones. The resulting Change Programme will consist of three inter-related workstreams: a) Public Service Management, b) Public Financial Management and c) Policy and Strategy, including Monitoring and Evaluation. Overall leadership of the Change Programme reform is provided by the Kaduna State Governance Committee, chaired by the Head of Service, which report to the State Steering Committee, chaired by His Excellency the Governor. Implementation of the Change Programme reforms is being led by the Office of the Head of Service (Public Service Management), the Ministry of Finance (Public Financial Management) and the Ministry of Economic Planning (Policy and Strategy, including Monitory and Evaluation). Pilot sectors for Change Programme reform include Education, Health and Agriculture whilst other sectors will begin to implement Change Programme reforms in a phased manner. This Change Programme Performance Report is a synthesis of analysis of progress recorded in the three workstreams between July 2011 and October 2012 emanating from review discussions held by technical committees of the workstreams. The overarching purpose of the review was to enable further strengthening of the Change Programme. The specific purpose of the review was to reflect on the achievements and challenges of Change Programme implementation and to make recommendations for adjusting Change Programme strategies, plans and budgets. Public Financial Management Workstream Implementation: Within Kaduna State, sub-national public finance is managed by Kaduna State Government and the 23 Local Governments. The Executive of KDSG, headed by the State Governor, is responsible for the Kaduna State Government Budget, and reports on its execution (total value approximately N136 billion in 2011 and N159 billion in 2012) to the Kaduna State House of Assembly. The Local Governments, which received about 43%, 37% and 34% of the revenue of Kaduna State in 2008, 2009 and 2010 respectively, are intended to operate in a similar democratic way. Each Local government council is responsible for its own budget and should report on its execution to the Local Government Service Commission and to the Ministry for Local Government of Kaduna State Government. The following comments are noted: In practice most local government expenditures are executed through joint bank accounts which are under the control of State Government entities but not reported in public financial statements by either the State Government or the Local Governments, thus leaving nearly 50% of expenditure in Kaduna State not properly reported. This is not the case in all Nigerian states. Though the change programme review is not specifically concerned with local government expenditure, except under the two specific indicators PI-8 and PI-9, it has been felt 5

7 6 necessary to comment on the unsatisfactory accounting arrangements for local governments in several places. Public Service Management Workstream Implementation: Particularly good progress has been made in reviewing the mandates of all MDAs in the state, including recommendations for rationalising existing mandates to support a more efficient public service. Building on these reviews, a Corporate Planning process designed to ensure MDAs are fit for purpose was established in MoEP, OHoS, Education, Health and Agriculture Sectors. Implementation in these pilot MDAs have recorded various degrees of successes. A Bureau of Public Service Reforms established in the OHoS is increasingly leading the coordination and implementation of the Change Programme. Progress has been made in finalising the manpower policy and management system training with the development of a training policy which has been approved by the Executive Council. Significant progress has been made in developing a HRMIS and payroll database, staff records across all MDAs and local governments have been verified through a verification exercise. In addition, an increased focus on Information Communication Technology policy is emerging with the establishment of an Information Communication Technology policy team and promotion of e- Government within the civil service. The mandate report has been reviewed in line with recommendations from the policy and restructures committee set up by the State Governor and approved by the Executive Council. Equally, a State Task team on Corporate Planning has been established and institutionalised in BEMST with a view to rolling the process across all MDAs in the State. Performance management has received significant boost through technical supports. A performance management department has been established and institutionalised in the Public Service Office under the Office of the Head of Service. Similarly, Bureau of Establishment, Management Services and Training, Civil Service Commission and Bureau of Public Service Reform have designed an Individual Performance Contract form which replaces the age-long APER form. The form which is being finalised has received the technical approval of the Head of Service for implementation from Key recommendations for the Public Service Management workstream identified during the review process include the need to accelerate the approval of a number of technical outputs by the Executive Council or Office of the Head of Service in order to facilitate the use of these outputs to accelerate reforms across State Government. There is also the need to bring the Ministry of Agriculture to date in the implementation of its Corporate Planning process. A related recommendation is to obtain formal Executive Council approval of the Change Programme which would make implementation of reforms more effective and efficient and reduce the need to obtain approvals for many specific technical outputs planned within the reforms. Other key recommendations include the need to support the production of mandate review guideline and support for the rolling out of the Corporate Planning through technical supports for the established task Team. An overarching recommendation is to technically support the functionality of the State Steering Committee and Coordinating Committees as drivers in the implementation of the Development Corporate Framework.

8 Policy and Strategy/Monitory and Evaluation Workstream Implementation: There is an improvement in Kaduna State s capacity for effective policy making and strategy development over the last years. This is partly due to the support being provided by donor agencies through their various programmes and partly due to the commitment by the state s Executive to improved planning. The state has been able to prepare the early rounds of Medium Term Sector Strategies for four pilot sectors (Agriculture, Education, Water and Health). Similarly, there have been some improvements in reporting sector performance in the four sectors of Agriculture, Education, Water and Health. Through the support of donor agencies, the previously prepared Change Programme which was directed at improving human resources, organizational capacity and systems; and institutional architecture aimed at supporting more effective policy-making and strategy development, was implemented and reviewed. Reform Programme Institutional Arrangements: In order to strengthen the understanding of the Change Programme amongst Kaduna State Government officials, Bureau of Public Service Reform which is saddled with the mandate of leading on the Change Programme must ensure wider sensitisation and awareness creation among Ministries, Departments and Agencies and other stakeholders on the planning and implementation of the Change Programme. There is a need to improve communication between technical teams/core working groups and Executive in order to improve decision making. As part of this, decision making should be streamlined through determining which decisions can be made at the administrative rather than executive levels and through communicating messages more effectively and briefing Commissioners ahead of Executive Council meetings. 7

9 1 Introduction 1.1 Change Programme Development and Objectives Work on the Change Programme began in early 2009 when State Government embarked on a self assessment process to clearly identify the strengths and weaknesses of its public service, and of its policy & strategy processes including Monitoring and Evaluation (P&S/M&E). A similar assessment had already been done in public financial management (PFM) in For each self assessment, a team of senior State Government officials and officers and political office holders gathered for two full days to conduct a holistic and comprehensive assessment of the current situation. Each team then used the self assessment results to prioritize reform areas, define a long-term vision for the reforms and set intermediate goals and objectives. These, together with detailed implementation plans, form the basis of the Change Programme. Consequently in 2012, the results of the 2010 self-assessments were subjected to further review to determine progress recorded in the implementation of milestones with a view to strengthening implementation capacity. The overall objectives of the individual Change Programme workstreams are retained and are summarised as follows: Public Financial Management: Comprehensive PFM management control and information systems, and competent PFM staff, enabling KDSG to mobilise and control the financial resources needed to execute its plans, and provide a strong base for implementing its future development plans. Public Service Management: A professional, motivated, ethical and well-resourced public service in Kaduna State repositioned to effectively and efficiently deliver quality services in a responsive and accountable manner. Policy & Strategy, including M&E: A developed human resources, organizational capacity and systems and institutional architecture for more effective policy making and strategy development as well as effective performance in monitoring and accountability processes. The overall strategy of the Change Programme is to support phased and sequenced institutional development in priority reform areas indentified during the self assessment review process. The three Change Programme workstreams represent discrete but integrated reform areas. They are mutually reinforcing and are work in tandem to first deliver coordinated reforms in key pilot sectors before expanding into additional sectors in subsequent phases. 1.2 Summary of Change Programme Stakeholders Overall leadership of Change Programme reforms to be provided by the Kaduna State Governance Committee, chaired by the Head of Service, with membership drawn from the following MDAs: the Office of the Head of Service, Ministry of Economic Planning, Ministry of Finance, Civil Service Commission, Board of Internal Revenue and the Office of the Auditor General. Implementation of the Change Programme reforms is being led by the Office of the Head of Service through the Bureau of Public Service Reforms. The office of Head of Service takes the lead on (PSM), Ministry of Finance (PFM) and Ministry of Economic Planning (P&S/M&E). Pilot sectors for Change Programme reforms include Education, Health and Agriculture. Other sectors will begin to implement Change Programme reforms in a phased manner. BPSR is helping communicate reforms across the civil service. 8

10 1.3 Purpose and Process of the Performance Report This Change Programme Performance Report is a synthesis of analysis and discussions held in a review meeting by the core team members of the various workstreams. The overarching purpose of the review was to enable further access programme implementation performance with a view to developing change plan using recommendations from the 2012 self assessment review. Specific purposes of the review included: Review the progress made in implementing the Change Programme against agreed output and outcome targets. Identify the Achievements and Challenges in implementing Change Programme plans and institutional arrangements. Individual Change Programme workstream technical teams met and prepared Progress Reports during June-September 2012 and these formed the basis of evidence for assessing level of achievements in each workstreams. This Change Programme Performance report synthesises the findings and recommendations reported in individual workstream developed during the meetings. 9

11 2 Analysis of Progress and Performance 2.1 Public Financial Management Summary of Progress and Achievements A: Budget Preparation B: Revenue Assessment and Collection Measures at improving the revenue basket to include revenues from Generate and Spend MDAs have been achieved. Policy model has been adjusted to include loans and grants by donor agencies. Sensitisation of Political Class and the Civil Servants on the need for expansion of revenue base has also been carried out. Production of Budget guideline and circulation were achieved within the stipulated period in the Budget Calendar. Realistic cash ceiling was produced and circulated to MDAs within the stipulated period in the Budget calendar. Training of MoEP, MoF on BC&CoA has been completed. Incorporating in-year budget for at least the 9 months actual performance of the immediate prior year, and meeting with Donor partners are in progress and to be included in budget. Website is yet to be established. The Consultant to design the website has been engaged and he has installed servers, carried out networking and provided internet services are outputs on forms and tax guides translated into Hausa and printed. Taxpayers enumerated and construction of a robust taxpayer register achieved. Taxpayer education using mass media completed. Establishment of Taxpayer Service Unit, production and distribution of Taxpayer Guide book done. 50% implementation target has been reached on conduct of taxpayer perception survey and tax payer service standard. A draft bill establishing the body of appeal commission has been sent to Ministry of Justice for input before it will be sent to ExCO and SHoA C: Internal Control and Internal Audit D: Expenditure Control And Cash Management Training has been conducted on the internal audit All MDAs now maintain not more than 2 bank manual. accounts. There has been improvement in submission of returns by MDAs due to tighter measures put in place by the Accountant General. Overheads of MDAs are not released by the AG in the event of non-compliance. Regular FAC monthly meetings to consider and approve forecasts are done monthly but at MDA level. Consolidated monthly expenditure plan submitted to H.E. for approval but limited to only the overheads. A policy for defining and accounting arrears, rollovers and liabilities has been developed. Evaluating liabilities and arrears of expenditure across KDSG as at the end of each year has been done. Provision for reducing liabilities and arrears has been incorporated into budget. E: Debt Management F: Accounting and Reporting Commonwealth Secretariat Debt Management Software has been procured and deployed within DMD. Staff training has been provided on its use. Further training on debt sustainability analysis has been provided. Review and update training materials done on Chart of Account. Delivery of training to targeted staff conducted. Quarterly reports from Accountant-General are available online and in hard copy [libraries, newspapers]. 10

12 Sufficient copies of reports published and distributed to all relevant public places and reports are uploaded to the AcGs website ( G: Payroll and Human Resource Management H: IFMIS/BATMIS A functional and process review of Personnel and CoA has been set up within BATMIS Payroll record update processes has been conducted. s for rationalising and adjusting functions and processes in order to ensure consistent updates have been made. Implementing and documenting revised functions and processes of Personnel and Payroll records is on-going. MDA 2012 agreed budgets entered into BATMIS Migration of data from legacy system to BATMIS is complete but data migration into HRMIS is still ongoing Incorporation of validated staff data is in progress Developing functions and processes for auditing the payroll is in progress, though biometric data capture has since commenced and concluded with corrections being made to the payroll. Conducting payroll audit on a yearly basis is institutionalised. Incorporation of all salary tables and staff loans have been submitted Completing transition of all financial management processes from legacy system (e.g. PASTEL Nigeria) to BATMIS has been achieved e.g. Accounting, Expenditure Control and financial reporting Preparing report on payroll audit highlighting inconsistencies and implementing follow up actions to address inconsistencies are on-going. I: Capacity Building at The State House Of Assembly J: Regulatory Framework Capacity building training has been given to SHoA on the scope of a budget review though the budget manual review developed by SAVI has not been adopted. Implementation of SHoA budget review sessions is being achieved. Preparation of budget review report by SHoA is being done. SHoA conducts oversight visit to selected MDAs on quarterly budget performance. Implementation of budget performance sessions by SHoA on quarterly budget performance is done. Preparation of SHoA budget performance review report with recommendations is done. Submission of Auditor Generals reports to PAC is being achieved. 11 Public procurement Bill is completed and draft bill sent to HE. Fiscal responsibility Bill completed, draft bill is with EXCO. Public Finance (Control and Management) Bill completed, draft bill is with EXCO. Stakeholder sensitisation on Audit, Public Procurement, and Fiscal Responsibility and Public Finance bills has been completed PAC convening scrutinising sessions and hearings where required on budget is in progress K: External Audit L: Public Procurement Auditor General ensures provision for payment of All activities under this dimension are predicated on the Audit fees is made by each parastatal. passage of the procurement bill. Capacity of Local Government Treasury staff and other stakeholders has been built. Comparison of new audit manual with existing audit guides achieved, New audit manual updated accordingly

13 Sensitisation on the concepts and techniques in the new audit manual at appropriate levels (e.g. Governor, Commissioners, AG staff, civil service, civil society) carried out. Public Access to Audited Annual Financial Statements increased through the Accountant General s website Key Lessons Learned 1. Continuation of unrealistic estimates undermines efforts to develop a credible budget. 2. There is a need to strengthen the independence of the internal auditors cadre and strengthen confidence in their ability to carry out responsibilities. 3. Budget formulation would be improved if DMC and MoEP were able to determine funding gaps in advance. 4. Budget formulation and implementation could be strengthened by ensuring all MDAs were familiar with the Budget Calendar and Chart of Accounts. 5. Timely implementation of important legislation (e.g. Public Finance, Public Procurement & Fiscal Responsibility Bills) requires the support and understanding of political leadership. 6. The absence of a procurement cadre in the service is a constraint to implementing effective public procurement processes. 2.2 Public Service Management Summary of Progress and Achievements A: Mandates B: Public Service Policy MDAs mandates capturing all MDAs in the State have been reviewed in line with the recommendations of the policy and re-structure committee and approved by EXCO. BPSR has been established, staffed and operational. HoS has made commitment to obtain formal approval letter from EXCO for its establishment before the end of Standing committee inaugurated by the HoS to review the statute books to meet the current trends in the public service administration. C: Public Service Performance Management/Corporate Plans State Task Team on Corporate Planning inaugurated in BEMST in preparation for roll out of CP process to all MDAs. D: ICT Policy Task team on ICT policy has developed a draft ICT policy. Work has begun on Service Charter with HoS leading the process. A service Charter concept paper has been developed and agreed. E: HRMIS and Payroll Database F: Establishment and Work force Planning Every activity under this dimension has been completed Establishment and workforce planning are harmonised however specialised training is to be conducted for with dimension C under the Corporate Planning process. Project Implementation Team (PIT) by the end of Training is to be undertaken by SGCBP II. 12

14 G: Employee Performance Management System H: Manpower Development Policy and Management System Training Performance management department established under Human Resource Development policy drafted and PSO, OHoS. approved by EXCO for implementation. Clear direction and leadership given to the three areas of individuals, organization and sectoral performance management. MDAs mandated to re-establish training committee by end of 2012 Individual performance contract form designed and approved to replace APER and be administered on civil servants from 2013 Organisational performance survey form has been developed and is to be piloted in selected MDAs I: Dimension I: Salary and Pensions Policy A committee is established to study current salary structure and come out with a pay policy for the state by 2 nd quarter of Key Lessons Learned 1. Government partner has the potential of taking initiatives of reform programmes as demonstrated in the design and technical approval of the individual performance contract form in replacement of APER. 2. Commitment attributes of the leadership of PSM sector as led by the Head of Service was instrumental to delivery of some of the pending activities in the workstream 3. A key success factor is the discipline with which MDAs and inaugurated committees responded to agreed tasks under reform programmes. This is also attributed to the discipline demonstrated by the Head of Service and top leadership of the civil service. 4. The idea of obtaining a no objection status on documents to be presented to the EXCO helps the ultimate consideration, discussion and approval of documents for implementation by MDAs. 5. Participative and consultative approaches can be effective at securing ownership of technical outputs within sectors/mdas. 6. A high level retreat on reviewing progress of workstream could be handled in a low key manner. This also promotes the concept of Value For Money (VFM) 2.3 Policy and Strategy (including M&E) Summary of Progress and Achievements A: Development of Medium Term Rolling Plans B: Working to Support Political Engagement EPA has been sufficiently well defined to guide strategic planning within all sectors and policy consistency between EPA and MTSS of pilot sectors of Health, Education, Water and Agriculture Vision 2020 and KSDP considered and approved by EXCO Multiyear budget (2012, 2013 and 2014) approved by EXCO/SHoA The revision of KSDP, incorporating MTEF, consistent with Policy and Restructuring White Paper is in 13 Revenue projections were prepared using revenue projection model. Fiscal strategy paper for 2012 was prepared and presented to EXCO. Sector ceilings were determined and circulated to sector MDAs. Outcome guidelines such as MTSS and sector performance review guidelines were issued to MDAs.

15 progress C: Building the Capacity of the Central MoEP D: Spreading MTSS Approaches Across Government Training and MTSS development review workshop held Health and Education sectors had utilised their annual to update knowledge base of MoEP and MTSS MDAs Sector Performance Reviews (SPRs) for adjusting their staff; and assess the weaknesses and strength in MTSS MTSSs and financing plans. However, others (Agric & development process. Water Resources) were unable to produce their SPRs. MTSSs are fully developed in 4 Pilot MDAs of Education, Health, Agric and Water Resources with the technical support of MoEP. E: Increased Use of Performance Management Processes KDSG performance management framework which specifies MDAs roles has been agreed and to be led by OHoS. A revised MTSS Development Guidelines is in progress and plans are underway to conduct training to boost capacity of MoEP and key staff within sector MDAs. MTSS prepared for 3 sectors - Education, Health and Agric but not yet published and not yet reviewed by EXCO. Corporate planning is being piloted in 5 MDAs and is addressing capacity gaps challenges. Ultimately, it is the plan of government to roll out CP to all MDAs which will ensure sector strategies are consistent with human and organisational capacity to implement plans and programmes. F: Increased Availability of Data Analysis and Information Work on identifying KPIs data needs is currently in progress. Overall KDSG performance management processes agreed and documented but sensitisation of MDAs on overall performance management processes is yet to happen. KDSG and SPARC consultants are currently working together to develop a set of cross government KPIs. Performance reports for education, health and agric have been prepared and published while the Change programme performance report is in progress. Performance reports for Health and Education sectors were used for adjusting their MTSSs and financing plans while the change programme performance review report will be used in adjusting the change programme plans. Health and Education MTSSs and Change Programme were revised based on recommendations from annual performance reviews and published Key Lessons Learned 1. Capacity development for policy and strategy and M&E development has the potential to have greater impact and provide more sustainable results if it takes place within a corporate planning process and not through separate discrete initiatives. 2. Consistency and alignment between over-arching policy statements and state development plans prevents duplication of efforts, reduces wastage of resources and promotes synergy. 14

16 3. Policy and financial decisions are better articulated when political leadership is wellinformed about the macro-economic environment of the state (brought about by the Change Programme). 4. Development planning is more effective when it is directed at addressing real gaps as identified during the initial self-assessments conducted under the Change Programme. 5. There is a growing recognition within the State Government of the need to increase investment in developing the human resources, organisational capacity and systems and institutional architecture for more effective policy making and strategy development and performance management. 6. A lesson learned is that many KDSG officials may not fully understand the goals and objectives of the Change Programme and individual dimensions as they are not involved in its implementation on a day-to-day basis. 15

17 3 Change Programme Institutional Arrangements 3.1 Summary of Progress and Achievements The State Steering Committee (SSC) for reforms is chaired by H.E. the Governor and provides oversight of all reforms taking place in Kaduna State. The SSC reports to H.E. the Governor and ExCo. Membership of the SSC includes senior KDSG leadership and donor representatives. The Governor has indicated interest in ensuring that the committee meet as at when due, this has increased the regular meeting of the Coordinating Committee. The Coordinating Committee for Governance provides overall leadership of governance reforms through leading implementation of the Change Programme. The committee is chaired by the Head of Service with membership consisting of selected senior State Government officials. Similar committees have been established to lead reforms in the Education, Health and Growth and Enterprise sectors. All these committees are expected to report to the SSC on a regular basis. Technical Management Teams have been established for each of the three Change Programme workstreams (PFM, PSM and P&S/M&E) in order to implement Change Programme plans. These teams are led by the Accountant General, MoF (PFM); The Head of Service, OHoS (PSM); and the Permanent Secretary, MoEP (P&S/M&E). Members of these teams are drawn from a number of MDAs. The SSC has had its inaugural meeting and follow up meetings are expected to happen soon. The Coordinating Committee for Governance has yet to meet formally, with communication between members of this committee being more ad-hoc and informal. There have been regular meetings of Technical Management Teams. The PFM team was established under the pre-existing PFM reform programme and is now leading implementation of Change Programme PFM reforms. A specific team was not required for the PSM workstream, where implementation responsibilities have been aligned with existing Government structures. The OHoS provides oversight for the PSM workstream, with the Bureau of Public Service Reform (BPSR) responsible for coordinating implementation. In order to manage the implementation of the P&S/M&E workstream, a core working group was established consisting of representatives from a number of MDAs however, MoEP serves as the leader in this sector. The alignment of the PSM technical team with State Government structures has proved particularly effective at supporting Change Programme implementation. Also, regular meetings of Permanent Secretaries (as part of their normal administrative responsibilities) organised by the OHoS provide the forum through which coordination of the PSM workstream takes place across government. The meeting occurrence has increased tremendously under the administration of the new HoS. PFM and P&S/M&E technical team meetings have not been as frequent or as regular as needed. In addition, membership of the P&S/M&E core working group needs to be reviewed given that participants are drawn from both administrative and technical cadres. There is limited value of having administrative staff attend these meetings given the nature of the P&S/M&E reform initiatives. 16

18 4 s for Adjusting the Change Programme 4.1 Public Financial Management General s 1. A system should be developed for producing clear and regular information on arrears of pensions and gratuities. 2. Reports on budget and actual capital expenditure summarized by administrative unit and economic item should be developed. 3. Reports on budget and actual recurrent expenditure summarized by sub-sector should be developed. 4. The following additional information should be included with the draft budget submitted to SHOA: (i) the projected rate(s) of inflation; (ii) fiscal deficit; (iii) summaries of debt stock (balances); (iv) prior year s actual outturn. 5. An accounting policy should be introduced that all revenue and expenditure from all funds and grants received in cash from other levels of Nigerian government should be fully and consistently recorded in the budget and financial statements of KDSG. 6. MOEP Department of Donor Aid Coordination should devise a system for ensuring that all donors register with them, that a clear and up-to-date register of donor programs and projects is kept. 7. MOEP Planning Department should develop a system for distinguishing between donor amounts received in cash and in those received in kind. In the annual budget estimates, donor amounts receivable in cash should be clearly distinguished from those to be received in kind. Amounts to be received in kind should be dealt with in a separate non-cash section of the budget statement, or included in a note that lists and totals non-cash grants and expenditures. 8. Receipts and payments from all KDSG bank accounts that handle donor cash grants should be included in the annual financial statements. For grants in kind, each donor should be asked to provide at least a broad estimate of the actual value of grant executed in KDSG s financial year, for inclusion in the annual financial statements as part of a non-cash section or note. 9. MOEP should build on its experience of advance revenue forecasting, by focusing on monthly revenue collection results and using these to continuously update revenue forecasts. These updates should be presented to EXCO monthly and should provide the baseline for decisions made by the Revenue Estimates Committee. 10. The next DSA to be carried out should include an assessment of pension liabilities. 11. Those MDAs which are able to describe their capital projects by a more detailed analysis of economic items are encouraged to do so. 12. KADP and PFMU must report all loan drawdown to the AG and DMD as soon as they happen. 17

19 13. The State House of Assembly should be sensitized on the principles, contents and importance of the Procurement Bill. 14. The Accountant General s reconciliation unit should extend its work on suspense accounts and below the line items to MDAs. 15. A meeting should be held to discuss a progressive strategy for generating in-year budget performance reports, using the improved information availability from the accounting and BATMIS systems. The meeting should include Final Accounts Department, MOEP, and representative from MDAs, as well as representatives from the information systems. 16. Details of year end contractual liabilities (analysed by project) should be included as a note to the financial statements. 17. The Budget Scrutiny Manual for SHOA should be completed, using technical assistance. Technical assistance should be conditional on an indication that the Public Accounts Committee is prepared to meet and review reports of the Auditor General Specific Dimension s A: Budget Preparation B: Revenue Assessment and Collection MoEP should devise means of obtaining information on loans and grants by donor agencies from MDAs ahead of budget preparation. MoEP should ensure that the Fiscal Strategy paper is prepared in July / August and presented to both Exco and SHoA before the final budget call circular with ceilings is sent out to MDAs yearly. MoEP should conduct budget sensitisation and early commencement of budget process annually to enable it submit draft budget to the SHoA by September 30 th, and get it approved by December 31 st. MoEP should always ensure that budget calendar is prepared and circulated to MDAs very early in the year and strictly adhered to. OHoS to expedite action on improving its website to accommodate posting of all economic development information of the state. MoF and MoEP should encourage budget profiling and cash forecasting of key sector MDAs e.g. Health, Education e.t.c. to enable MDAs better time their requests for capital expenditure and large irregular recurrent items. C: Internal Control and Internal Audit D: Expenditure Control And Cash Management KDSG should work towards reviewing the law establishing internal audit to enable recommendations for establishing internal audit cadre be made. 18 BOIR should seek for overhead support from HE through the office of the Accountant General to enable it carry out the tax payer perception survey and tax payer service standard. Ministries of Finance and Justice should expedite action on the establishment of Body of Appeal Commission (BAC). MoF and MoEP should collaborate in designing a system that enables MDAs check and assess funds availability before commitments are made BEMST should expedite action to ensure the stores regulations is revised and updated. E: Debt Management F: Accounting and Reporting The Honourable Commissioner and Accountant General Ministry of Finance should fast-track the MoEP and MoF should make budgetary provision for migrating to IPSAS to cover sensitization, soft

20 process of establishing a DMC in accordance with the DMO template for State DMDs in order to strengthen policy direction of DMD operations. ware design and development, and training of personnel. DMD should expedite action to ensure the training on Commonwealth Secretariat Debt Management Software is concluded as soon as possible to allow for definition and development of debt reporting formats and processes G: Payroll and Human Resource Management H: IFMIS/BATMIS I: Capacity Building at The State House Of Assembly J: Regulatory Framework Appropriation Committee in the State Assembly should expedite action on the preparation of a budget calendar for SHoA. Honourable Commissioner Ministry of Finance should follow up with HE to ensure the Public Procurement bill is finalised on time and sent to SHoA. SHoA should adopt the budget review manual supported by SAVI as an operational manual. SHoA should request budget performance reports from MoEP and MoF. PAC should ensure that recommendations are prepared based on findings from sessions and hearings. PAC should ensure that follow up actions, sanctions and proceedings are implemented Honourable Commissioner Ministry of Finance should follow up with Exco to ensure the Fiscal Responsibility bill is finalised on time and sent to SHoA. Honourable Commissioner Ministry of Finance should follow up with Exco to ensure the Public Finance (Control and Management bill is finalised on time and sent to SHoA. KDSG to ensure that once the bills are passed into law, the financial regulations is revised and updated to ensure consistency with the new bills. K: External Audit L: Public Procurement All activities relating to this output cannot be carried out until the procurement bill is passed 4.2 Public Service Management General s 1. ExCo should formally approve the Change Programme in order to make implementation more efficient and effective. 2. Budgetary provision should be made annually for BPSR to cover Change Programme process and implementation. 3. HoS to ensure that mandate reports is published, circulated and sensitised across MDAs as this will ensure that the individual performance contract form becomes operational and effective once mandates and functions of each MDAs across the service is well known. 4. In order to help strengthen the leadership of BEMST in supporting the spread of corporate planning approaches across government, budgetary provision should be made available to support the activities of the Corporate Planning Task Team to deliver on their tasks. 5. Need to clarify the respective roles and responsibilities of OHoS and MoST in driving implementation of the KDSG ICT policy. Related to this is the need to clarify policy on management of MDA websites, including the extent to which these websites should be separate or part of an overall KDSG website. 19

21 4.2.2 Specific Dimension s A: Mandates B: Public Service Policy The reform committee on LGA to oversee the mandates and functions clarifications of the LGAs, draft proposals on LG law amendments and submit to HoS. C: Public Service Performance Management/Corporate Plans HoS to task responsible MDAs (BEMST/CSC, MoEP & PSO) on the performance management issues. HoS to play oversight roles in the implementation of service charters across MDAs in the State. HoS to inaugurate and task the standing committee on the review of statute books to complete review, seek approval, print, circulate and sensitise the civil service on the review books. D: ICT Policy ICT policy, rules and guidelines should be finalised, approved, printed and made available to all MDAs and Public Servants Sensitisation conducted on ICT policy, plans, rules and guidelines. Consultants to support Ministries to develop ICT plans based on analysis of MDAs ICT usage and competence ICT Plans should be agreed and submitted to budget committees for consideration; ICT Procurement Plan developed. On the job training on ICT should be carried out using relevant software for MDAs in line with their mandates and functions. E: HRMIS and Payroll Database F: Establishment and Work force Planning Specialised training programme to be conducted for Merged with Dimension C Project Implementation Team (PIT). Staff salaries should be paid using linked payroll and HRMIS integrated software. G: Employee Performance Management System H: Manpower Development Policy and Management System Training Inaugurated committee to conduct research and consider other best practices on employee performance management and submit report to HoS. Training programme for the new system developed, approved, printed and circulated. Individual performance contract which contained new Job Description signed by each employee in the state should come to force. I: Dimension I: Salary and Pensions Policy Committee should be established to study current salary structure and come out with a pay policy for the state. Manpower Planning Committee reconstituted and positioned in BEMST for proper implementation of HRD policy across MDAs 4.3 Policy and Strategy (Including M&E) General s 1. Executive Council and the Assembly should be considering and making their policy priorities in the context of: (a) Macro-economic and fiscal projections; and (b) A performance review relating to the success or otherwise of last year s programme in achieving its objectives. 2. A sector policy statement (and its supporting strategy) is not legitimate unless it can be demonstrated to be financially feasible. This means that strategies should be assessed for their cost, especially in both capital and recurrent terms, and projected over a period of years (3 years minimum but potentially up to 2015). 20

22 3. Policy statements should be founded on a SMART outcome target so as to ensure that strategies (which may include infrastructure construction for example) actually deliver on service delivery improvements. For example if a hospital is to be built the evaluation question should be, has this had a positive impact upon the health of the population as expressed in outcome targets? If not alternative strategies need to be thought through. 4. In order that strategies devised to achieve policy outcome targets are potentially effective, and make efficient use of resources, there is a need for these to be based upon baseline information and upon research into effective approaches. 5. Most state sectors need to consider the coordination of their strategies with other key actors, especially federal and local government, as well as the private sector or nongovernmental organisations that provide services. 6. There is a need for state policies and strategies to be checked for their suitability for implementation by the civil service agents and organisations that are currently in place. 7. Participation in policy making is a potential means for achieving policy responsiveness by including all interests and underprivileged groups in the consultation process. 8. If a measure of agreement in principle can be achieved between technical administrators and the political leadership with respect to a policy in a given sector, there is then an opportunity to solicit broad-based public support for the measure. 9. Information Management and Monitoring and evaluation systems is an essential part of state accountability mechanisms and can support policy development, strategic planning and program implementation within state Ministries, Departments and Agencies (MDAs). State government can guide and influence the development of Information Management / M&E systems in MDAs by formulating and enforcing effective legislative and regulatory frameworks. These frameworks, together with accountability mechanisms, provide the basis for MDAs to put in place organizational arrangements for providing information for planning, reporting on progress and measuring performance (results, outcomes and impact). 10. In order for MDAs to design, plan and implement effective Information Management / M&E systems across the state in a coordinated and consistent way, it is important that State Government defines its policy for information management / M&E and prepares an appropriate strategy document which provides the basis for individual MDAs to plan and implement their own information management / M&E systems. 11. The organizational capacity of MDAs to effectively implement and carry out Information Management / M&E functions and processes is dependent on a number of factors. M&E functions and processes can be focused within a specialist organizational unit and/or distributed throughout a number of units. The organization should be able to identify internal and external clients or users of M&E information, the processes this information is intended to support and the unit which is responsible for supporting them. 12. The extent to which information, statistics and M&E data can be effectively used to support planning, monitoring and management by the information users in the MDA and other agencies is of course dependent on the data being in the required format, in the appropriate level of detail, of good quality and produced on a timely basis. Thus, a key requirement of this the data is sufficiently disaggregated to support comprehensive analysis that supports 21