Decentralization Support Activity Project

Transcription

1 Report of the DSA Project Activities: July 1 st to September 30 th, 2006 Project Report: Q 38 January 12, 2007 Decentralization Support Activity Project THE NETHERLANDS MINISTER FOR DEVELOPMENT COOPERATION

2 The DSA project is implemented by Harvard University and funded by Irish Aid, The Netherlands Minister for Development Cooperation and the United States Agency for International Development (USAID)

3 CONTENTS ACRONYMS...3 I. KEY ACTIVITIES OF THE REPORTING PERIOD...4 II OUTSTANDING ISSUES...5 Reduction of DSA activities due to funding... 5 Afar Introduction of the Accounts Reform... 5 Gambella Introduction of the Accounts Reform... 5 Somali Introduction of the Accounts Reform... 6 Reporting in Somali Region... 6 Outstanding IT Issues... 6 III. CORE ACTIVITIES...8 A. ACCOUNTS REFORM... 8 Accounts Reform at the Federal Government... 8 Accounts Reform in SNNP Region Accounts Reform in Tigray Region Accounts Reform in Amhara Region Accounts Reform in the Dire Dawa Administrative Council Accounts Reform in Oromia Region Accounts Reform in the Addis Ababa City Administration Accounts Reform in Benishangul Gumuz Region Accounts Reform in Harari Region B. BUDGET REFORM Budget Reform at the Federal Government Budget Reform in Tigray Region Budget Reform in SNNP Region Budget Reform in Amhara Region Budget Reform in Oromia Region Budget Reform in the Dire Dawa Administrative Council Budget Reform in Harari Region Budget Reform in the Addis Ababa City Administration Budget Reform in Benishangul Gumuz Region Budget Reform in Afar Region Budget Reform in Somali Region DSA Quarterly Report 38: July to September

4 Budget Reform in Gambella Region C. EXPENDITURE PLANNING REFORM Planning Reform in Oromia The Tigray Transfer Formula The SNNPR Transfer Formula D. INFORMATION TECHNOLOGY IT activities in the Federal Government IT activities in SNNPR IT activities in Tigray Region IT activities in Amhara Region IT activities in Oromia Region IT activities in the Addis Ababa City Administration IT activities in Benishangul Gumuz Region IT activities in the Dire Dawa Administrative Council IT activities in Harrari Region IT activities in Somali Region IT activities in Afar Region IT activities in Gambella Region IBEX activities Other ANNEX 1 SUPPORT TRIPS CONDUCTED DURING THE REPORTING PERIOD ANNEX 2 THE STATUS OF THE DSA DESIGNED IT SYSTEMS...38 ANNEX 3 GOVERNMENT STAFF TRAINED DURING THE REPORTING PERIOD ANNEX 4 NEW REPORTS PRODUCED DURING THE REPORTING PERIOD A. ACCOUNTS REFORM B. BUDGET REFORM E. PUBLIC INVESTMENT/EXPENDITURE REFORM G. TRAINING STRATEGY FOR ACCOUNTS AND BUDGET PLANNING H. MISCELLANEOUS REPORTS I. PROJECT QUARTERLY REPORTS J. INFORMATION TECHNOLOGY M. OUTSIDE REPORTS INVOLVING THE DSA PROJECT DSA Quarterly Report 38: July to September

5 ACRONYMS BDA 3 (A) BDA 3 (B) BIS BOFED CAD COA EMCP FY IBEX MOFED OFED PBS RSB STS SNNP WPA UAT Budget Disbursement and Accounts System for the new chart of accounts and existing single entry cash accounting system Budget Disbursement and Accounts System for the new chart of accounts and double entry bookkeeping, and modified cash accounting system Budget Information System Bureau of Finance and Economic Development Central Accounts Department of the Ministry of Finance and Economic Development Chart of Accounts Expenditure Management and Control Sub Program Fiscal Year Integrated Budget Expenditure System Ministry of Finance and Economic Development Office of Finance and Economic Development Protecting Basic Services Region Sector Bureau Single Treasury System Southern Nations, Nationalities and Peoples Wereda Performance Agreement User Acceptance Testing DSA Quarterly Report 38: July to September

6 I. KEY ACTIVITIES OF THE REPORTING PERIOD A technical and cost proposal was prepared for the extension of Phase 4 of the DSA project. The budget manual has been revised and the draft budget manual distributed to the members of the MOFED Budget Design Team for review and comments. The consolidated countrywide accounts for FY1995 was printed and distributed. The IBEX Accounts Module was piloted in Tigray region with the closing of FY 1998 accounts and the processing of FY 1999 accounts. The accounts manual and training module for city sector bureaus were designed by DSA and the accounts reform team of Addis Ababa Afar region submitted the FY 1996 accounts to MOFED. Oromia, Amhara and Dire Dawa submitted the FY 1997 accounts to MOFED The FY 1999 budgets have been approved by all Regional Councils in all jurisdictions. Budget preparation training for 1,319 newly recruited/assigned staff was delivered in Amhara region. Assessments were conducted in Somali and Afar regions on the effectiveness of the budget execution and the findings were discussed with senior officials at BOFED. SNNP region conducted its fifth bi annual Financial Management Conference was held in Wolaita for 450 participants to identify, discuss and resolve financial management issues. DSA Quarterly Report 38: July to September

7 II OUTSTANDING ISSUES Reduction of DSA activities due to funding The DSA project was forced to scale back its operations for a period of six weeks due funding issues. The funds required for completing the phase 4 activities planned for the period August to November 2006 are now secured. However, the absence of definitive commitments from its stakeholders on what activities would be funded in the extension period less than two months from the current contract end date is a concern to the project. The scale back of DSA operations has adversely impacted the project s planned activities from being implemented on schedule and delayed important post implementation support to regions. Afar Introduction of the Accounts Reform The DSA project notified the Ministry of Finance and Economic Development over a year ago, that the following policy decisions need to be made and implemented as prerequisites to implement the accounts reform in regions: o Implementation of the single pool system at wereda and zone o Approval and implementation of the single treasury structure o Recruitment of qualified (degree/diploma) accountants to ensure that each budget institution and wereda has at least two qualified accountants The region has been consulted on several occasions to expedite the above process. To stress the importance and urgency of these issues it may be helpful for MOFED to discuss them with the region. Gambella Introduction of the Accounts Reform The DSA project notified the Ministry of Finance and Economic Development over a year ago, that the following policy decisions need to be made and implemented as prerequisites to implement the accounts reform in regions: o Implementation of the single treasury structure o Recruitment of qualified (degree/diploma) accountants to ensure that each budget institution and wereda has at least two qualified accountants The region has been consulted on several occasions to expedite the above process. To stress the importance and urgency of these issues it may be helpful for MOFED to discuss them with the region. DSA Quarterly Report 38: July to September

8 Somali Introduction of the Accounts Reform The DSA project has been reminding the Ministry of Finance and Economic Development for a period of well over one year that the following policy decisions need to be made and implemented and issues related to the closure of accounts be resolved as a prerequisite to implement the accounts reform: o Recruitment of qualified (degree/diploma) accountants to ensure that each budget institution has at least two qualified accountants o Closure of FY 1997 accounts o Strengthening the implementation of the single treasury structure The region has been consulted on several occasions to expedite the above process. To stress the importance and urgency of these issues it may be helpful for MOFED to discuss them with the region. Reporting in Somali Region None of the weredas have submitted any monthly reports for FY 1998 to BOFED. In addition, the region has a significant backlog in the closure of FY 1997 accounts. The accounts reform cannot be introduced unless the region demonstrates the ability to close the FY 1997 and 1998 accounts on a timely basis. The region has been consulted on several occasions and numerous follow up visits have been conducted to expedite the above process. The BOFED needs to demonstrate commitment by taking a more active role in ensuring the timely closure of accounts. Outstanding IT Issues To date, the project does not have a clear direction from MOFED as to the strategy it wants to adopt for the handover of the IT systems to the Government. While the project continues to try and work on as many activities as possible with MOFED, the lack of a clear strategy is still hampering the handover of IT systems to the Government. DSA Quarterly Report 38: July to September

9 No. Region or Administrative Council No. of zones in FY 1996 CHANGE IN NUMBER OF WEREDAS IN EACH REGION No. of weredas in FY 1996 No. of zones in FY 1999 No. of weredas in FY Oromia SNNPR Amhara Remarks 39 weredas created in FY97 46 weredas were created in FY98 and will be functional from FY99 19 urban weredas created in FY97 29 weredas were created in FY98 and will be functional from FY99 5 urban weredas created in FY97 19 weredas were created in FY98 and will be functional from FY99 4 Tigray urban weredas created in FY96 5 Benishangul Gumuz Gambella weredas will be functional from FY99 7 Afar weredas were created in FY98 and will be functional from FY99 8 Somali Expected to be discussed in next council meeting 9 Harari 9 Kebeles Kebeles created in FY97 10 Dire Dawa 9 Kebeles Kebeles created in FY97 11 Addis Ababa 10 sub cities 100 Kebeles 10 sub cities 100 Kebeles Note: Total number of weredas in FY1999: 733 DSA Quarterly Report 37: April to June

10 III. CORE ACTIVITIES A. Accounts Reform Accounts Reform at the Federal Government Countrywide Consolidation The consolidated countrywide accounts for FY 1995 was printed and distributed. The consolidation of the countrywide accounts for FY 1996 is in progress. CAD is using the IBEX accounts consolidation module this consolidation. Reporting for FY 1996 and FY 1997 The audit of FY 1996 Federal accounts is completed. For FY 1997, all 163 reporting units of the federal government have submitted their accounts to CAD. The draft accounts for FY 1997 are under review. Reporting for FY 1998 Of the 159 reporting entities: 87 have submitted monthly reports up to June. 51 have submitted monthly reports up to May. 4 have submitted monthly reports up to April. 3 have submitted monthly reports up to March. 1 has submitted monthly reports up to February 3 have submitted monthly reports up to January 1 has submitted monthly reports up to December. 1 has submitted monthly reports up to October. 3 have submitted monthly reports up to September. 5 have not submitted any monthly reports. CAD is using the IBEX Accounts Module to process the FY 1999 accounts and close FY 1998 accounts. DSA Quarterly Report 38: July to September

11 Status of Accounts Closure: Federal and Regional Governments Accounts closure status (Year) Federal Oromia Amhara Tigray SNNP Afar Gambella Harari A/A D/D Somali BGumuz Note: (1) Tigray, Oromia, Amhara and Dire Dawa regions have closed and submitted their FY 1997 accounts to MOFED. These regions as well as MOFED are currently working on the closure of the FY 1997 accounts. National consolidation status FY 1995: work completed FY 1996: work in progress DSA Quarterly Report 38: July to September

12 Accounts Reform in SNNP Region Reporting for FY 1997 It is expected that the FY 1997 accounts will be submitted to MOFED in the next quarter. Reporting for FY 1998 All region sector bureaus have reported up to June. Of the 136 weredas: 44 weredas have submitted reports up to June 32 weredas have submitted reports up to May 39 weredas have submitted reports up to April 21 weredas have submitted reports up to March BOFED and the zones are processing their accounts using BDA 3(B). Reporting for FY 1999 Of the 49 region sector bureaus: 13 have submitted reports up to August 25 have submitted reports up to July 11 have not submitted any reports Financial Management Conference The 5 th bi annual Financial Management Conference was held in Wolaita zone, Wolaita Sodo, from September 4 to 7. Participants included 450 representatives from weredas, special weredas, zones, town administrations, regional offices, Regional Council, Regional Council Budget Standing Committee, the BOFED Coordination Bureau, Capacity Building Bureau, Civil Service Commission, Auditor General s Office, Gambella regional BOFED, Pension and Social Security Authority and the MOFED EMCP Coordination Office. The conference was opened by the Deputy Administrator of Wolaita zone and closed by H.E. Ato Tsegaye Mamo, Vice President of the SNNP region. The objectives of the conference were to: Evaluate the performance of reform activities Identify issues that negatively impact the preparation of the FY 1999 budget preparation and closure of FY1997 and 1998 accounts. Discuss financial management and administrative issues DSA Quarterly Report 38: July to September

13 The 4 day conference concluded passing important declarations such as: 1. Submit the FY1999 budget to BOFED before September 20, Submit the FY 1999 performance contract agreements to BOFED by October 10, Submit on a timely basis the monthly financial reports. 4. Strengthen the single treasury system to enhance efficiency and economy. 5. Provide quality socio economic and financial data that is essential for planning and resource allocation All thirteen declaration points and details of the conference are described in project report M 86. Action plan DSA advisors visited the region and discussed with senior staff at BOFED issues such as the FY 1999 budget preparation, closure of FY 1997 and FY 1998 accounts, training for staff at newly created weredas, operations of the Wereda Support Unit and expenditure planning issues. The minutes of the meeting are documented in project report M 81. STS Training for staff at newly created weredas Staff at the 29 newly created weredas need to be trained in the single treasury system. However, staff assignment and recruitment at the new weredas are not finalized. The training will be delivered after staff assignments are finalized. The weredas will then notify their training requirements to their respective zones, and, the zones will compile zonal requirements and notify BOFED. BOFED will in turn compile the total number of weredas and zones staff requiring training and notify the DSA project of the requirements. Accounts Reform in Tigray Region Reporting of FY 1998 accounts All of the 46 weredas have submitted monthly reports up to June. Of the 42 region sector bureaus: 40 RSBs have submitted monthly reports up to June. 2 RSBs have submitted monthly reports up to May. BOFED is reconciling the accounts with regional reporting units and weredas. DSA Quarterly Report 38: July to September

14 Reporting of FY 1999 accounts Of 46 weredas: 29 weredas have submitted reports up to August 7 weredas have submitted reports of July 10 weredas have not submitted any monthly report Of 42 region sector bureaus: 34 RSBs have submitted reports up to August 4 RSBs have submitted reports up to July 4 RSBs have not submitted any monthly report Implementation of IBEX accounts module BOFED is using the IBEX Accounts Module to process the FY 1999 accounts and close the FY 1998 accounts. Additional training Additional accounts training to new recruits will be supported by The DSA project once exact requirements are compiled by BOFED. Accounts Reform in Amhara Region Reporting of FY 1997 accounts BOFED has submitted its FY 1997 accounts to MOFED. Reporting of FY 1998 accounts All weredas have submitted monthly reports up to June to zones. Currently zones are processing the accounts using BDA 3(B). All regional reporting units have submitted reports up to June. BOFED has started the reconciliation of accounts with regional reporting units. Reporting of FY 1999 accounts Of the 45 region sector bureaus: 41 RSBs have submitted monthly reports up to August DSA Quarterly Report 38: July to September

15 4 RSBs have not submitted any monthly report The region is processing the accounts for FY 1998 and FY 1999 using BDA 3(B). Action plan The training material prepared for the accounts refresher training for region sector bureau sub agencies was translated by the region. The training strategy for delivery of the refresher training will be finalized during the next quarter. STS training for staff at newly created weredas Staff at the 19 newly created weredas needs to be trained in the single treasury system. However, staff assignment and recruitment at the new weredas are not finalized. The training will be delivered after staff assignments are finalized. The weredas will then notify their training requirements to their respective zones, and, the zones will compile zonal requirements and notify BOFED. BOFED will in turn compile the total number of weredas and zones staff requiring training and notify the DSA project of the requirements. Accounts Reform in the Dire Dawa Administrative Council Reporting of FY 1997 accounts BOFED has submitted its FY 1997 accounts to MOFED. Reporting of FY 1998 accounts Of the 33 region sector bureaus: 31 RSBs have submitted reports up to the end of June 2 RSBs have submitted reports up to the end of May Reporting of FY 1999 accounts Of the 33 region sector bureaus: 11 RSBs have submitted reports up to the end of August 6 RSBs have submitted reports for the month of July 16 RSBs have not submitted any monthly report The region is processing the FY 1998 and FY 1999 accounts using BDA 3(B). DSA Quarterly Report 38: July to September

16 Post implementation support Support teams visited public bodies to provide on the job training. In addition, a three day refresher training program is planned to be delivered to 150 accountants after the Ramadan fasting period to improve the quality of reporting. Additional accounts training to new recruits will be delivered after the requirements are compiled by BOFED and notified to the DSA project. Accounts Reform in Oromia Region Reporting of FY 1997 accounts BOFED has submitted its FY 1997 accounts to MOFED. Reporting of FY 1998 accounts Out of the 40 region sector bureaus: 37 RSBs have submitted monthly reports up to June RSBs have submitted monthly reports up to May Out of the 236 weredas: 161 weredas have submitted reports up to June 52 weredas have submitted reports up to May 13 weredas have submitted reports up to April 8 weredas have submitted reports up to March 4 weredas have submitted reports up to February Reporting of FY 1999 accounts Out of the 39 region sector bureaus: 26 RSBs have submitted monthly reports up to August. 5 RSBs have submitted monthly report of July 8 RSBs have not submitted any monthly report Out of the 284 weredas: 34 weredas have submitted monthly reports up to August. 41 weredas have submitted monthly report of July 209 weredas have not submitted any monthly reports DSA Quarterly Report 38: July to September

17 BOFED and ZOFED are processing the FY 1998 and FY 1999 accounts using BDA 3 (B). Starting FY 1999, the zones are recording the treasury transactions using the Transaction Register Module of the BDA to reduce the workload and improve the reporting efficiency. STS Training for newly created weredas Staff at the 48 newly created weredas and 3 zones needs to be trained in the single treasury system. The staff assignments at these jurisdictions should be completed and the training requirements compiled by BOFED and notified to the DSA project. Post implementation support Teams comprising staff from DSA and Oromia BOFED visited the 14 zones from September 4 through to September 27 to provide technical assistance in the following areas: To load the FY 99 budget structure in the BIS To provide support in using the Transaction Register module of the BDA To solve technical issues and provide on the job training. Post implementation support was provided to weak weredas located in different zones to improve the quality of reporting as detailed below: Zones East Shewa, Southwest Shewa, West Shewa, Borena, East Hararge and East Wellega North Shewa, South West Shewa, East Shewa and East Wellega Jurisdictions visited 7 zones 19 weredas 4 zones 14 weredas Dates July 07 to August 13, 2006 September 13 to October 1, 2006 Refresher training on BIS was conducted from August 21 24, 2006 to 24 budget experts from the 14 existing zones and 3 newly created zones of Oromia. DSA Quarterly Report 38: July to September

18 Accounts Reform in the Addis Ababa City Administration Reporting of FY 1997 accounts All RSBs and sub cities have submitted reports up to June. The draft accounts for FY 1997 are under review and will be submitted to MOFED in October. Reporting of FY 1998 accounts Out of the 29 region sector bureaus: 13 RSBs have submitted reports up to June 10 RSBs have submitted reports up to May 4 RSBs have submitted reports up to April 1 RSB has submitted reports up to March 1 RSB has not submitted any monthly report All sub cities have completed recording transactions up to May. Accounts reports of sub cities are closed and submitted to BOFED only on an annual basis. The sub cities and BOFED are processing the FY 1998 and FY 1999 accounts using BDA 3(B). Preparation of Accounts Manual and Training Module Staff from DSA and the BOFED accounts reform team revised the existing city sector bureau accounts manual and training module and prepared a draft accounts manual and training module. Senior staff at BOFED is reviewing the organizational structure, job responsibilities of accounts staff and some new forms proposed in the new accounting system. Accounts Reform in Benishangul Gumuz Region Reporting of FY 1997 accounts BOFED is expected submit accounts to MOFED in the month of October. Reporting of FY 1998 accounts Out of the 22 region sector bureaus: 21 have submitted report sup to June has submitted reports up to May Out of the 20 weredas: DSA Quarterly Report 38: July to September

19 19 weredas have submitted reports up to June 1 has submitted reports up to March Reporting of FY 1999 accounts Out of the 22 region sector bureaus: 10 have submitted reports up to August have submitted reports up to July Out of the 20 weredas: 8 have submitted reports up to August 2 have submitted report up to July 10 have not submitted any monthly reports The region is processing the FY 1998 and FY 1999 accounts using BDA 3(B). Accounts Reform in Harari Region Reporting of FY 1997 accounts It is expected that the region s FY1997 accounts will be submitted to MOFED in the next quarter. Reporting of FY 1998 accounts Of the 30 region sector bureaus: 7 RSBs have submitted reports up to the end of June 21 RSBs have submitted reports up to the end of May 2 RSBs have submitted reports up to the end of April The region is processing the FY 1998 accounts using BDA 3(B). Reporting of FY 1999 accounts Of the 32 region sector bureaus: 15 RSBs have submitted reports up to the end of August 17 RSBs have submitted reports up to the end of July DSA Quarterly Report 38: July to September

20 Post implementation support Support teams visited public bodies and kebeles to provide post implementation support. A three day refresher training program is planned to be delivered to 160 accountants after the Ramadan fasting period to improve the quality of reporting. DSA Quarterly Report 38: July to September

21 B. Budget Reform Budget Reform at the Federal Government FY 1999 budget The FY 1999 Negarit Gazette has been sent for printing. Revision of Budget Manual The draft revised budget manual has been distributed to the members of the Budget Design Team for review and comments. The budget manual will be finalized during the next quarter. The revised manual incorporates changes to the budget classification scheme, chart of accounts and includes a new chapter summarizing the legal framework for public financial management in Ethiopia. New sections have also been incorporated to describe the IBEX budget module. Budget Reform in Tigray Region FY 1999 budget Weredas have notified the approved budgets to their respective sector offices with copies to BOFED for consolidation. The regional budget is being consolidated using the IBEX budget module and the budget book will be printed next quarter. Budget Reform in SNNP Region FY 1999 budget Weredas and zones are in the process of approving their respective budgets. Four zones and seven special weredas have submitted the approved budgets to BOFED. Zones are using BIS to process the FY 1999 budget. The regional budget is being consolidated using the IBEX Budget Module. DSA Quarterly Report 38: July to September

22 Budget Reform in Amhara Region FY 1999 budget Weredas and zones are in the process of approving their respective budgets. Six zones finalized and submitted the approved budgets to BOFED. Zones are using BIS to process the FY 1999 budget. The regional budget is being consolidated using the IBEX Budget Module. Training Budget preparation training for 215 trainers was delivered from July 13 to July 16. Subsequently, region wide budget preparation training was delivered to 1,104 wereda and zone staff from July 19 to 28. Budget Reform in Oromia Region FY 1999 Budget Preparation Weredas and zones are in the process of approving their respective budgets. Two zones finalized and submitted the approved budgets to BOFED. Zones are using BIS to process the FY 1999 budget. The regional budget is being consolidated using the IBEX budget module. Budget Reform in the Dire Dawa Administrative Council FY 1999 budget The FY 1999 Negarit Gazette has been published. The budget consolidation is in underway using BIS. Budget Reform in Harari Region FY 1999 budget The FY 1999 budget has been approved by the regional council. BOFED has notified the approved budget to city sector bureaus and kebeles. The draft Negarit Gazzetta was sent to the Council for ratification. The FY 1999 budget consolidation is underway using BIS. DSA Quarterly Report 38: July to September

23 Budget Reform in the Addis Ababa City Administration FY 1999 budget The FY 1999 Negarit Gazette is sent for printing. The city budget was processed and consolidated using IBEX. The budget book will be printed during the next quarter. Budget Reform in Benishangul Gumuz Region FY 1999 budget Weredas and zones are in the process of approving their respective budgets. 14 weredas finalized and submitted the approved budgets to BOFED. BOFED is using BIS to process the FY 1999 budget. Budget Reform in Afar Region FY 1999 budget 15 out of 29 weredas have submitted budget notifications to their respective sector offices with copies to BOFED. The Region budget is being processed using BIS. FY 1996 accounts BOFED has submitted the accounts to MOFED. FY 1997 accounts All region sector bureaus and all weredas have submitted monthly reports to BOFED up to June. BOFED has started the reconciliation of accounts with all reporting units. FY 1998 accounts Of 39 region sector bureaus: 1 RSB has submitted monthly reports up to June 31 RSBs have submitted monthly reports up to May 4 RSBs have submitted monthly reports up to April. 1 RSB has submitted monthly reports up to March. DSA Quarterly Report 38: July to September

24 1 RSB has submitted monthly reports up to February. Of the 29 weredas required to submit monthly reports for FY weredas have submitted monthly reports up to June 15 have submitted monthly reports up to May 4 wereda has submitted monthly reports up to April. 2 weredas have submitted monthly reports up to March. 2 weredas have submitted monthly reports up to February. Regional Assessment An assessment of the budget execution process was made from July 12 to July 22 in 18 weredas. The findings were discussed with senior officials. Based on these discussions the following key steps were agreed to by BOFED: Issue directives to solve technical and administrative issues Establish support units to provide technical support to weredas in maintaining their records using the directives issued to help the processing of FY 1999 accounts. Finalize refresher training materials and deliver refresher training to accountants The findings of this assessment are documented in project report M 86. Five teams were established including DSA staff to visit and support all 29 weredas from October 8 to October 30. Refresher training A refresher training program is planned to be delivered to 300 accountants after the Ramadan fasting period to improve the quality of reporting. Budget Reform in Somali Region FY 1999 budget preparation Budget preparation training was delivered for 534 trainees (461 from weredas and 73 from RSBs) during the period July 20 to September 21. Only 29 out of the 45 region sector bureaus have submitted their budget requests to BOFED. No wereda has submitted copies of the budget notification to BOFED. DSA Quarterly Report 38: July to September

25 An assessment of the budget preparation was conducted from August 1 to 18 at 10 weredas and 15 region sector bureaus. The findings of this assessment are documented in project report M 80. Discussions were held with the officials of the BOFED. DSA advisors also made regular visits to BOFED, region sector bureaus and weredas to provide technical and management support to speed up the budget preparation, process and closure of accounts. FY 1997 accounts All of the 47 RSBs have submitted monthly reports up to June. Of the 52 weredas: 22 weredas have submitted reports up to June 30 weredas have not submitted any monthly report. FY 1998 accounts Of the 47 region sector bureaus: 2 RSBs have submitted monthly reports up to June 5 RSBs have submitted monthly reports up to April 2 RSBs have submitted monthly reports up to March 1 RSB has submitted monthly reports up to February 6 RSBs have submitted monthly reports up to January 2 RSBs have submitted monthly reports up to December 4 RSBs have submitted monthly reports up to November 3 RSBs have submitted monthly reports up to October 5 RSBs have submitted monthly reports up to September 1 RSB has submitted monthly reports up to August 1 RSB has submitted monthly reports up to July 15 RSBs have not submitted any monthly repots None of the 52 weredas have submitted any monthly reports for FY During the reporting period, DSA staff provided the following support to BOFED: Conduct of regional assessment DSA Quarterly Report 38: July to September

26 Visits to region sector bureaus to resolve technical issues and provide onthe job training for the closure of FY 1997 and the processing of FY 1998 accounts. Discussions on key policy decisions that are required to be taken by the region, namely the recruitment of qualified staff and the approval and implementation of the single treasury structure to implement the accounts reform. Supervision of the region wide budget training Support of the FY 1998 budget consolidation Discussions on the FY 1999 budget preparation Budget Reform in Gambella Region FY 1999 budget preparation The FY 1999 budget has been approved by the regional Council. BOFED has notified the approved budget to sector bureaus and final subsidies to weredas. FY 1997 accounts The draft accounts for FY 1997 are prepared and are under review. FY 1998 accounts 42 RSB s have prepared and submitted reports to BOFED. 2 out of 3 zones and 4 out of 7 weredas have submitted their reports to BOFED Refresher Training Refresher training materials on budget execution under the single pool system for FY 1999 is under preparation. Refresher training on budget execution will be delivered during the next quarter. DSA advisors made regular and consistent visits to region sector bureaus and weredas and provided technical support to speed up the budget preparation, processing and closure of accounts. DSA Quarterly Report 38: July to September

27 C. Expenditure Planning Reform Planning Reform in Oromia The Oromia BOFED is also using a needs based transfer formula and the region seems to be currently comfortable with the system. Because of staff shortages and limited time however, the Oromia BOFED is still not focusing on the design and implementation of the PEP and Performance Agreements. Understandably, the regional structure is in a state of flux (i.e., 46 weredas and 3 zones added for FY1999) and it is hard for the BOFED to focus on the planning reform. The Tigray Transfer Formula As presented in the previous quarterly report, a unit cost fiscal allocation formula was designed for use in the Tigray region. The regional cabinet has accepted the general methodology and some revisions to the draft formula will be undertaken to better reflect regional concerns. Work on the updating of the transfer formula is expected to resume in the next quarter. However, the Tigray BOFED needs to assign full time, dedicated planning staff for better achievements. The SNNPR Transfer Formula The SNNPR BOFED has been using a needs based formula driven allocation system to assign regional revenues to weredas. The Regional Cabinet approved an interim modified transfer formula for FY1999, in which primary transfers are made to zones and zones transfer to weredas. The primary transfer is largely based on the previous system weighted significantly for population, while the secondary transfer to weredas is reported to be made on a needs based system along the lines of previous years transfers. The two systems are not however compatible and some weredas are reported to anticipate difficulties in meeting their current obligations. The SNNPR transfer system needs to be revised. DSA Quarterly Report 38: July to September

28 The updated design is based on the following principles: (a) Revenues are regional revenues, and no taxes are assigned to sub regional governments. If this changes, then the transfer system must change. (b) Expenditure assignments are made (according to the constitution) by the regional council and the council is responsible for ensuring that they constitute funded mandates. (c) Where sub regional governments have constitutionally mandated responsibilities they must have protected resources to permit them to fulfill their mandates. The transfer formula is integrally related to the structure of performance and the PEP. The constitution does not provide full guidance on how accountability (as opposed to the flow of resources) might be structured, and a number of options are issued for discussion. The project s Planning Advisor will return in December 2006 with the particular objectives of continuing support to the changes taking place in the SNNPR. For details around the SNNPR transfer formula, please refer to project reports M 74 and M 75. DSA Quarterly Report 38: July to September

29 D. Information Technology IT activities in the Federal Government Following the completion of the Federal FY 1999 budget, the DSA project assisted this quarter in facilitating the distribution of the approved budget to all federal reporting units. At the beginning of each year, the approved budget must be exported from the IBEX Budget module and imported into the standalone BDA 3(B) installation at all reporting units for use in budget execution. To reduce the dependence on technical support for this process, the project developed a simple import tool that can be used by reporting units. Using this tool all reporting units were able to come to MOFED, collect their approved budget which was exported from IBEX, and then return to their offices and automatically import their approved budgets. This operation proved to be highly successful and has reduced the need for technical support for a recurring process. The government achieved a major milestone this quarter in launching the IBEX Accounts Module pilot in the CAD and the Finance and Administration departments of MOFED. The launch was on August 14, MOFED is one of the two pilot sites, the second being Tigray region. The IBEX Accounts Module, which comprises the Budget Adjustment Module, the Accounts Module and the Budget Control Module is being used in MOFED to process FY 1999 accounts. BDA 3(B) continues to be used to close the FY 1997 and 1998 accounts. 23 people from CAD and the Finance and Administration Department in MOFED were trained in two batches. In addition, the project worked closely with the MOFED IT department in supporting IBEX users in MOFED. This is an important step in the process of handing over the IT systems to the Government. Another major milestone that was completed this quarter is the completion and printing of the consolidated national accounts for FY 1995, using the IBEX Consolidation Module. Consolidation of the FY 1996 accounts also started in this quarter. Additional federal activities this quarter included the implementation of BDA in the Dire Dawa Transport Authority, including training for 2 staff. This reporting unit was brought under the jurisdiction of the Federal government this budget year. DSA also assisted the Ethiopian Customs Authority implement BDA 3(B) in all its branch offices by providing training for 22 staff. The project also provided training for 13 IT staff from the Ethiopian Customs Authority who will be installing and supporting the application in the branch offices. DSA Quarterly Report 38: July to September

30 IT activities in SNNPR The DSA project supported the SNNPR region this quarter with the closure of its FY 1996 accounts. Most of this support was provided at BOFED where the project helped identify and resolve data problems in the FY 1996 accounts. The region is expected to close FY 1996 accounts shortly. During this quarter, the project also completed a support trip to all zones in the SNNP region to help start zones prepare their FY 1999 budget, to assist in importing the FY 1999 budget structures so that accounts processing can continue and to assist in the closure of FY 1997 accounts. The project also took this opportunity to make any necessary software upgrades and resolve any outstanding issues. The IBEX Budget Module was implemented in SNNPR BOFED on July 26, 2006, for the preparation of the FY 1999 budget. The project provided training to BOFED staff and installed the IBEX servers in the SNNPR BOFED. A support staff was also assigned full time for a period of a week following the implementation to support users in the application. IT activities in Tigray Region In a major milestone for the project, the IBEX Accounts Module pilot was launched in the Tigray BOFED on July 18, In addition, the IBEX Budget Module was also launched immediately after, making the Tigray BOFED the first fully integrated (budget and accounts) implementation of IBEX. The launch of the IBEX Accounts Module pilot followed many weeks of intensive training, user acceptance testing and incorporation of feedback gathered into the application. The main goal of this pilot is to test the IBEX Accounts Module in a production environment in order to iron out any remaining issues and confirm the suitability of the application for full scale rollout to other regions in the country. During this quarter, the Tigray region also closed and submitted their FY 1997 final accounts to the MOFED. IT activities in Amhara Region The project completed a support trip to all zones in the Amhara region this quarter. The objectives of this support trip were to assist zones in the preparation of the FY 1999 budget and to help start the processing of the FY 1999 accounts by importing the budget structures for the new fiscal year. The opportunity was also used to update all necessary software in zones. DSA Quarterly Report 38: July to September

31 The IBEX Budget Module was implemented in Amhara BOFED on July 26, 2006, for the preparation of the FY 1999 budget. The project provided training for all budget staff and for system administrators. A support staff was also assigned full time for a period of a couple of weeks following the implementation to support users in the application. The project also supported the Amhara BOFED this quarter in consolidating and closing its FY 1997 accounts. Amhara region closed and submitted their FY 1997 accounts to MOFED this quarter. IT activities in Oromia Region The project supported Oromia with the closure of their FY 1997 accounts. The support included a trip to all zones to resolve outstanding issues, assist in closing FY 1997 and install necessary software upgrades. The project also assisted in consolidating and closing FY 1997 accounts at BOFED, although notably, BOFED completed most of the work independently. Oromia region achieved a significant accomplishment this quarter by being one of the first regions to close their FY 1997 accounts. The project also assisted all zones in Oromia in starting the preparation of the FY 1999 budget. While the original plan was to visit all zones to perform this function, due to funding issues for the project, support teams were unable to travel to zones. Instead, all zones brought their computers into the DSA offices for support. Following the resolution of the funding issues, a support trip to all zones in Oromia was completed to start them processing their FY 1999 accounts. During this trip on site refresher training was given where necessary and any necessary software updates were installed. The project worked this quarter to train, equip and implement BIS and BDA in three new zones created in Oromia region. Computers and equipment was provided by the project and BIS was installed and started to be used to prepare the FY 1999 budget. The implementation of BDA 3(B) was postponed to the next quarter due to delays in funding for the project. IT activities in the Addis Ababa City Administration The project provided extensive support to Addis Ababa BOFED and the 10 subcities to help with the closure of FY 1997 accounts. Significant progress was made, and FY 1997 accounts are expected to be closed in the first half of the next quarter. DSA Quarterly Report 38: July to September

32 The project also provided support to BOFED and all sub cities by importing the FY 1999 approved budget data into BDA 3(B), thus enabling them to begin processing their FY 1999 accounts. During this quarter, the project also started discussions with Addis Ababa BOFED regarding the piloting of the IBEX Accounts Module in Addis Ababa and its sub cities. Addis Ababa has been selected as a pilot site because of the WAN connecting its sub cities to BOFED, thus providing a good proof of concept for the distributed computing abilities of IBEX. A demonstration of IBEX functionality was given to officials from BOFED and the sub cities. IT activities in Benishangul Gumuz Region The project visited the Benishangul Gumuz BOFED to provide support in starting the preparation of the FY 1999 budget. During the same visit, support was provided in the closing of FY 1997 accounts. In order that the BOFED could continue to work on both FY 1997 (single entry) and FY 1998 (double entry) accounts, the project also set up separate installation of BDA 3(A) and BDA 3(B). This set up will only be necessary until FY 1997 accounts have been closed and submitted. During this trip, other necessary software upgrades were also completed. IT activities in the Dire Dawa Administrative Council The project visited Dire Dawa BOFED to provide support in starting the preparation of the FY 1999 budget and make necessary software upgrades. IT activities in Harrari Region The project visited Harrari BOFED to provide support in starting the preparation of the FY 1999 budget and make necessary software upgrades. IT activities in Somali Region The project visited Somali BOFED to provide support in starting the preparation of the FY 1999 budget and make necessary software upgrades. IT activities in Afar Region The project visited Afar BOFED to provide support in starting the preparation of the FY 1999 budget and make necessary software upgrades. DSA Quarterly Report 38: July to September

33 IT activities in Gambella Region The project visited Gambella BOFED to provide support in starting the preparation of the FY 1999 budget and make necessary software upgrades. IBEX activities In this quarter, significant effort was devoted to supporting and monitoring the IBEX pilots in Tigray and MOFED. On the development side, the Accounts Closing Utility, which is part of the Accounts Module, was designed and is under development. Other development activities include a Bank Reconciliation function in the Accounts Module. The IBEX development team has also been working on different migration tools that will be used to migrate data between BIS/BDA, standalone IBEX implementation and the distributed IBEX application. The project, together with MOFED, has been discussing plans with the Information Communication Technology Development Authority (ICTDA) regarding the use of WeredaNET for the distribution of IBEX to weredas throughout the country. Our plans and products were well received and support for testing the application on WeredaNET was forthcoming. We also raised some technical connectivity issues with the ICTDA regarding connectivity between MOFED and regional BOFED. The ICTDA has been working closely with us to help fulfill these requirements. Other The project discussed handover strategies with MOFED. A consultant has been hired by MOFED to explore the options and recommend a strategy. A new Project Manager has also been hired in MOFED to strengthen the MOFED IT Department. DSA Quarterly Report 38: July to September

34 ANNEX 1 SUPPORT TRIPS CONDUCTED DURING THE REPORTING PERIOD TRIP NO. REGION VISITED SITES VISITED VISITING STAFF NAME PROJECT/ ORGANIZATION TRIP PURPOSE TRIP DATES TRIP DURATION 1 OROMIA Modjo Abaya Terfassa James Joseph DSA PROJECT Oromia Awareness Workshop for senior officials July 2, days 2 SNNPR BOFED James Warner DSA PROJECT Discuss SNNPR transfer formula status July 4 to 6, days 3 DSA DSA Project Paulos Tesfaye OROMIA BOFED Discuss issues related to WSU operation July 5, day 4 BENISHANGUL GUMUZ Assosa Biniyam Belete DSA PROJECT Support closing of 97 accounts July 6 to 9, days 5 OROMIA Ilu Aba Bora, Jimma East and West Wellega, Borena, East Hararge, East, West and South West Shewa zones Paulos Tesfaye OROMIA BOFED Post implementation support to weak weredas July 10 Aug. 13, days 6 TIGRAY Weredas Hadush G/Michael TIGRAY BOFED Rollout of the latest BDA version to weredas July 10 to 14, days 7 TIGRAY BOFED James Warner DSA PROJECT Discuss Tigray transfer formula status July 12 to 15, days DSA Quarterly Report 38: July to September

35 TRIP NO. REGION VISITED SITES VISITED VISITING STAFF NAME PROJECT/ ORGANIZATION TRIP PURPOSE TRIP DATES TRIP DURATION 8 AMHARA Dessie Debre Markos and Bahir Dar Almaz Mekonnen Essayas T/Giorgis DSA PROJECT To supervise the budget preparation training in Amhara region. July 12 to 17, days Debre Berhan Neguss Kebede July 13 to 16, days Chifra, Ewa, Gulina Dalifage, Dewe and Telalak weredas Abaya Terfassa Melaku Abeje July 12 to 21, days 9 AFAR DSA PROJECT Assessment of the budget execution Elidar, Afambo, Asaita Buremudaitu, Dulecha and Argoba weredas Alemu Kidane Samuel G/Medhin July 12 to 22, days 10 AMHARA Bahir Dar Mohan Joseph Dereje Mekonnen DSA PROJECT Assess the accounts closing procedures in Amhara region July 13 to 14, days 11 TIGRAY Tigray BOFED Adam Abate Eric Chijioke DSA PROJECT Review User Acceptance Testing (UAT) issues July 17 to 18, days Mohan Joseph July 17 to 23, days Moyale Neguss Kebede Supervision of the region wide budget training (Liben Zone) July 18 to 25, days 12 SOMALI Shinile Shumye Tessema DSA PROJECT Supervision of the region wide budget training (Shinile Zone) July 18 to 26, days Gode Essayas T/Giorgis Supervision of the region wide budget training (Gode Zone) July 18 to 24, days DSA Quarterly Report 38: July to September

36 TRIP NO. REGION VISITED SITES VISITED VISITING STAFF NAME PROJECT/ ORGANIZATION TRIP PURPOSE TRIP DATES TRIP DURATION North/South Gonder East/West Gojam and Awi zones Biniam Belete Yassin Teshome Demeke Mulugeta Ayalew Atnafu DSA PROJECT AMHARA BOFED July 18 to August 9, 2006 July 20 to August 6, days 17.5 days 13 AMHARA North Shewa, Oromia North and South Wello and Wag Himra zones Ayalew Bimerew Beniyam Bekele Yassin Teshome Demeke Mulugeta Ayalew Atnafu DSA PROJECT AMHARA BOFED BDA upgrade and budget preparation support July 18 to August 9, 2006 July 20 to August 7, days 18.5 days Ayalew Bimerew 14 SNNP SNNPR BOFED Mebrahtu Araya DSA PROJECT To discuss the FY99 action plan July 27 to 28, days 15 SNNP SNNPR BOFED 16 SOMALI Jijiga, Kebribeya, Awbrea, Babile, Gursum, Shinile, Erer, Aisha, Moyale and Hudet weredas Dereje Mekonnen July 27 to 28, days IBEX Budget Module Data Migration and DSA PROJECT Mesele Tadesse operational support July 27 to Aug. 4, 8.5 days 2006 Melaku Abeje Essayas T/Girogis Niguss Kebede Shumye Tessema DSA PROJECT August 1 to 6, 2006 Assessment of the budget reform in region sector bureaus and accessible weredas August 1 to 18, days 17.5 days 17 AMHARA Amhara BOFED Dereje Mekonnen DSA PROJECT FY97 accounts closing and FY99 budget processing support August 23 to September 8, days DSA Quarterly Report 38: July to September