Projekti Mbështetje Teknike për MASHT (FBSA) Kosovë Ministria e Arsimit, Shkencës dhe Teknologjisë Ministry of, Science and Technology Ministarstvo Obrazovanja Nauke i Tehnologije Technical Assistance to MEST (ESPF) Kosovo Project Review of Expenditure Programs Structure in Sector Proposal for Expenditure Programmes Structure at Sector- Wide and Budget Organization Level March 2015
Contents Introduction... 1 Medium Term Expenditure Framework of, Science and Technology Sector... 1 Ministry of, Science and Technology... 1 Kosovo Academy of Science and Arts... 1 University of Prishtina... 1 Comparision of the Budget Structure with Regional Countries.... 2 Sector Budget Structure in Albania, Budget 2015.... 2 Sector Budget Structure, Montenegro, 2015 Budget... 2 Budget Structure in Sector, Macedonia, 2015 Budget... 3 Budget Structure of the Sector, Serbia, 2014 Budget... 4 Budget Structure of the, Kosovo, 2015 Budget... 5 Linkage to the Integrated Planning System... 5 Proposed Sector-Wide Structure, with an emphasis on MEST... 6 Përmirësimet e mundshme të menjëhershme.... 9 Ndërlidhja e strukturës së re të propozuar mbarësektoriale me indikatorët e performancës...11 Shtojca 1: Draft Struktura e KASH-it Sektorial...13 Shtojca 2: Struktura e Propozuar për Ministrinë e Arsimit, Shkencës dhe Teknologjisë...14 Shtojca 3: Struktura e Propozuar e Buxhetit për ARsimin në Nivelin Komunal...15 Shtojca 4: Struktura e Programit...16
Introduction, Science and Technology sector in Kosovo is managed by three central level Budget Organizations, as well as by municipalities at the local level. Sector Midterm Expenditure Framework, as in the past, is prepared at the budget organization level, and strategic resources for the mid-term budget are allocated to budget organizations rather than to sectors or policies implemented by the sector. The same situation is noted in Midterm Framework 2015-2017, where resources for, Science and Technology Sector are allocated to three budget organizations at central level (KASA, MEST and UP) and to municipalities in-grants designated for education. Medium Term Expenditure Framework of, Science and Technology Sector Ministry of, Science and Technology The Ministry of, Science and Technology in the Medium Term Expenditure Framework 2015-2017 introduced the following objectives: 1. Comprehensiveness and quality assurance in pre-university education; 2. Increase of participation and quality assurance in higher education, and the promotion of scientific research; 3. Qualitative management and development of the education sector. In addition to this, the Ministry of, Science and Technology presented performance indicators at the programme level in MTEF. Kosovo Academy of Science and Arts In Medium Term Expenditure Framework 2015-2017, Kosovo Academy of Science and Arts presented the following objectives: 1. Implementation of the project Encyclopaedic Dictionary project with the Encyclopaedia of Kosovo (long term project); 2. Publishing activity of Academy (publication of the scientific research results); 3. Long-term activity of the Interacademic Council for the Albanian Lanaguage (in cooperation with the Academy of Sciences of Albania). It s worth mentioning that the objectives are set at the budget organization level, which in 2015 is equivalent to a budget line (programme and sub-programme). University of Prishtina University of Prishtina, in 2015-2017 MTEF, has presented the following objectives: 1. Increase of studying and teaching quality 2. Advancement of scientific researches in UP transformation of University in an institution of high education and scientific researches; 3. Extension and maintenance of high education facilities; 4. Improvement and advancement of informative system. 1
Similar to KASA, objectives in MTEF are set at budget organization level, which in 2015 budget is equivalent to budget line (programme and subprogramme). However, based on on the, Science and Technology Sector Gap Assessment Report prepared by the MEST Technical Assistance project, the MTEF and budget under current structure is not adequate to support sector budgeting based on policies. The 2015 budget needs further improvement toward adequate medium term planning. Therefore, considering such situation, it has become apparent the need to review the current education sector budget structure in order to achieve several objectives, us as: a) Linking the budget structure with strategic objectives of the sector; b) Further upgrade of the strategic planning process in education sector; c) Possibilities to find saving from the budget programme restructuring. Furthermore, in line with good practices in planning the education sector, we recommend for the current budgetary programmes structure to be revised in order to ensure a direct link with strategic objectives in the sector and at the same time the implementation of the certain budget programmes to be toward the achievement of the sector goals. Comparison of the Budget Structure with Regional Countries. The structure of the budget of the education institutions in the regional countries by budget programmes is presented below. Sector Budget Structure in Albania, Budget 2015. The Republic of Albania, the only regional country with successful in budgetary reform, has a very simple education sector budget programmes structure, which is policy based. The same structure is used in Medium Term Budget Program (MTEF equivalent) and the annual budget. The budget of the education sector in the Republic of Albania is managed within one institution with seven budget programmes as in the table below: Budget Institution Ministry of and Sports Budget Programme Planning, Management and Administration Basic (including Pre-school) Secondary (general) Secondary (professional) University Funds for Science Development of Sports Sector Budget Structure, Montenegro, 2015 Budget In Montenegro, the Ministry is in charge to manage the education budget at programme level, which in 2015 was found to be simple yet comprehensive. One specific in this country is that the project for construction of education and science infrastructure is budgeted within the Ministry for Sustainable Development. As such, we may conclude that the education budget in the Republic of Macedonia is managed by two budget institutions, broken down to 10 budget programmes as provided in following table: 2
Budget Institution Ministry of Ministry of Sustainable Development Budget Programmes Preschool Basic Secondary Teaching and Students Standards Institution for Textbooks and educational materials Higher and Research Construction and Reconstruction of and Science Facilities Budget Structure in Sector, Macedonia, 2015 Budget The sector budget in the Republic of Macedonia is planned and managed by one budgetary institution, and within the 11 programmes with a total of 32 sub-programmes. Such a structure, similar to Ministry of, Science and Technology in Kosovo, is extensive, based on functional classification, which is not necessarily in line with national policies. Budget institution Budget programme Budget sub-programme Ministry of and Science Administration Administration Support for Implementation of the Strategy for Roma Basic Basic Basic projects Secondary Secondary Secondary projects Secondary projects Support to Roma`s Higher Higher University of Skopje University of Manastir University of Tetovo University of Ohrid Construction of the Faculty of Informatics and Computer Engineering and the Faculty of Physical Culture Pupils standards Pupils standards Student standards Science Decentralization Public Administration Reform European Integration sector investments Student standards Scientific research Scientific institutions National Agency for Nuclear Technology Lab programmes Project for translation of distinguished Authors Books Transfer of Competences for ELS Training and Capacity Building Transition Assistance and Institution Building Construction of Primary Schools Reconstruction of Primary Schools 3
Construction of Secondary Schools Reconstruction of Secondary Schools Reconstruction of sports halls in secondary schools Construction and reconstruction of student dormitories Budget Structure of the Sector, Serbia, 2014 Budget Ministry of in the Republic of Serbia has a budget structure which can be considered as most complex in comparison with other neighbouring countries sampled in this study. In general, the budget structure is as follows: Budget institution Ministry of Chapter Function Programme N/A Basic research EU-IPA Component 1 - Transition Assistance and Institution Building (N.E.C) Regulation and Oversight of System Basic Preschool and Primary Preparatory and Preschool Programme Primary EU-IPA Component 1 - Transition Assistance and Institution Building Support Services Support Services Secondary Support Services Support Services Higher Support Services Support Services Students Support Services Support Services Standards Promotion Institute Institute for Quality Assessment (N.E.C) (N.E.C) Regulation and Oversight of System EU-IPA Component 1 - Transition Assistance and Institution Building Regulation and Oversight of System 4
Budget Structure of the, Kosovo, 2015 Budget Kosovo, similar to the Republic of Macedonia and the Republic of Serbia, has an extensive structure of budget lines, which can be suitable for the control of expenses at the expenditure accounting items (economic categories), however, it is not suitable for budgeting policies and priorities well defined and formulated. The following shows the education sector budget structure which consists of 3 central budget organizations, and by one programme and four subprogrammes (budget lines) for each local level budget organization. Budget institution Programme Sub-programme Ministry of, Science Higher and Science Student Centre and Technology Bilateral agreements University of Prishtina Institute of Albanology University of Peja University of Gjakova University of Mitrovica Capital Investments in Higher and Science Pre-university education National Qualification Authority Special Needs Teacher training Curricula Development Basic Program VET Agency Capital Investments in Preuniversity education Co-financing with the Municipal Assemblies Co-financing with the Municipal Assemblies in North Services of the Administration Central Administration Minister`s Office Inspectorate University of Prishtina University of Prishtina University of Prishtina Academy of Sciences and Academy of Sciences and Arts Academy of Sciences and Arts Arts Various municipalities and Science Administration Preschool education Primary Secondary Linkage to the Integrated Planning System As stated above and as is found in sector gaps research, this budget structure adopted in the 2015 Budget does not sufficiently support education sector policies presented in MTEF 2015-2017, and budgeting is more based on institutions priorities rather than educational policies known as input based budgeting. This implies, that this budgeting does not allow direct measurement of inputs related to the implementation of a policy/programme level and the corresponding cost. Such a situation brought questioned effectiveness of public expenditures and difficult measurement of success/performance of a particular policy towards the funds spent for the particular policy. The Integrated Planning System roadmap, in context of planning process proposals, proposes a two level coordination and management structures. 5
Strategic Management Committee Highest policy and administrative level, and Programme Committees administrative and specialists level that coordinates and implements strategic decisions. In order to advance the policymaking, policy prioritization, ensuring their implementation at all education sector levels, the proposed programmer committees structure in IPS report should be fully linked with the proposed new budget structure. Such a structure would enable direct "communication" of relevant committees with proposed policies and will enable tracking of their implementation and measuring by corresponding indicators. In this context, under the proposal to establish Programme Committees, the establishment of a Programme Committee on Capital Investments shall be reconsidered, on the grounds that in certain cases capital investments in infrastructure must be directly related to the implementation of any of the programmes in other fields. Proposed Sector-Wide Structure, with an emphasis on MEST With regards to a performance based structure, there is no specific rule, however as a general rule, the programme structure should be based on the national policies, and that it should be practical to provide better information that would be used on prioritization, budgeting, execution, monitoring and evaluation. Based on policy documents approved up to date, such as the Government Programme, and Science is an important pillar of the policy prioriorites of the Government of the Republic of Kosovo. On this grounds, it would be more practical that the development, planning, execution and monitoring of policies related to the development of knowledge in Kosovo to be performed within the Sector. Sector on which the policies on development of knowledge in Kosovo would be planned, developed, and executed to be named, Science and Technology. Whereas, specific policy areas within this sector to be developed within sub-sectors such as: 1. Science and Technology; 2. Higher ; 3. Pre-University and general education; 4. Vocational ; 5. Planning and Administration. Figure 1: Sector and Subsector Composition Overview Sector, Science and Technology Sub-Sectors Science and Technology Higher General Pre-University Vocational Planning and Administration Budget Organization s Academy of Science and Arts Ministry of, Science and Technology Ministry of, Science and Technology University of Prishtina Ministry of, Sicence and Technology Municipalities Ministry of, Science and Technology Municipalities Ministry of, Science and Technology Municipalities KASA??? UP???? 6
The list shows that different organizations and organizational units operation within each subsector/programme, which are identified as such in the budget structure adopted in 2015 Budget. For example: Proposed Sub-sector/programme Science and Technology shall include as follows: - Budget Organization: 231 KASA o Programme: 175 KASA Sub-programme: 913 KASA. - Budget Organization: 2013 MEST o Programme: 110 Higher and Science Sub-programme: 970 Institute of Albanaology - Prishtina 971 Institute of History - Prishtina 972 Leposavic Institute 918 Pedagogical Institute 982 Higher and Science Capital Investments (note: only investment projects for relevant sub-sector) Proposed Sub-sector/programme Higher shall include as follows: - Budget Organization: 208 MASHT o Programme: 110 Higher and Science Sub-programme(s): 917 Bilateral Agreements 919 University of Prizren 973 Accreditation Agency 974 University of Peja 977 University of Gjilan 978 University of Gjakova 979 University of Mitrovica 982 Higher and Science Capital Investments (note: only investment projects for relevant sub-sector) - Budget Organization: 242 University of Prishtina o Programme: 112 University of Prishtina Sub-programme: 904 University of Prishtina Proposed Sub-sector/programme Pre-university and General shall include as follows: - Budget Organization: 208 MEST o Programme: 111 Pre-University Sub-programme: 900 National Qualification Authority 908 Special Needs 910 Teachers Development 911 Curricula Development 925 Basic Program 7
981 Pre-university Capital Investments (note: only investment projects for relevant sub-sector) - Budget Organization: 6xx Municipalities o Programme: 92x and Science Sub-programme: 922xx Pre-primary education and Kindergartens 930xx Primary 942xx Secondary Proposed Sub-sector/programme Vocational shall include as follows: - Budget Organization: 208 MASHT o Programme: 111 Pre-university Sub-programme: 975 VET Agency 981 Pre-university Capital Investments (note: only investment projects for relevant sub-sector) - Budget Organization: 6xx Municipalities o Programme: 92x and Science Sub-programme: 942xx Secondary (Vocational) The above at the same time can be expenditure programmes to which the sector-wide resources can be allocated in MTEF, and would be used for planning and development of subsector policies in form of programme policy. Whereas, another proposed programme Planning and Administration would include common organizational functions, hence, support functions to other programmes such as: Administration, Procurement, Human Resources Management, Finance, sector level policymaking, etc. In principal, programme Planning and Administration preferably should not be planned at output level, since the activities undertaken do not provide direct services to the public, however, they support the creation of outputs within other programmes. E.g. carrying out a tendering procedure for construction, or renovation project, etc. Below is presented a coordination scheme between the proposed Integrated Strategic Planning System at the Government level and ISP at the sector level. In this context, "Strategic Planning Committee", proposed to be established at the Government level, would have the primary responsibility for determining priorities for both policies and budget allocations per sector. Inter alia, this Committee, in case of Science and Technology Sector will be responsible for reviewing the plans submitted by the Sector Strategic Management Committee, a committee that will communicate directly with Programme Committees responsible for setting objectives within each sub-sector/programme while observing budgetary ceiling predetermined by the, Science and Technology Sector Strategic Management Committee. 8
Potential immediate improvements. Givern the legal constrains of the Law on Public Financial Management and Accountability (as amendmended), the transition from current planning and budgeting practices to the sector wide level takes time, and requires changes to the above law. This implies the need to find a structure which is in harmony with the existing legislation, however poses no future obstacle to achieve sector planning goals. Therefore, the authors propose that some changes at budget organization level are necessary to ensure improvement in linking the budget with policies considering good budgeting practices. Such improvements may be as follows: At Ministry of, Science and Technology level: Current MEST Budget Structure Programme: Higher and Science Sub-programme: Student Centre Bilateral Agreements University of Prizren Institute of Albanaology - Prishtina Leposavic Institute Accreditation Agency University of Peja University of Gjilan University of Gjakova University of Mitrovica Higher and Science Capital Suggested Structure Programme: Science and Technology In the following structure: - Institute of Albanaology - Prishtina - Institute of History - Prishtina - Leposavic Institute - Pedagogical Institute All the above may include small capital and non-capital projects. - Large scale capital projects for Science and Technology (large scale capital and non-capital projects) 9
Investments Programme: Pre-university Sub-programme: National Qualification Authority Special Needs Teachers training Curricula Development Kosovo Pedagogical Institute Basic Program VET Agency Pre-university Programme: Capital Investments Co-financing with Municipal Assemblies Sub-programme: Co-financing with MA in North Programme: Services of the Administration Sub-programme: Central Administration Minister`s Office Kosovo Inspectorate Programme: Higher In the following structure: - Bilateral Agreements; - Accreditation Agency; - University of Prizren; - University of Peja; - University of Gjilan; - University of Gjakova; - University of Mitrovica; - Large scale capital and non-capital projects in Higher. Programme: Pre-university General In the following structure: - National Qualification Authority; - Special Needs ; - Teachers Development; - Curricula Development; - Basic Program; The above may include small scale capital and non-capital projects. - Large scale capital and non-capital projects Programme: Vocational In the following structure: - VET Agency - Large scale capital and non-capital projects in Vocational Programme: Planning and Administration - Central Administration - Minister`s Office Kosovo Inspectorate One possible improvement could also be done through modification of the budget structure of municipal budgets. Such modification would be in harmony with sector and sub-sector priorities set at central level, through which the so-called minimum standards are defined and for which the intergovernmental transfer in form of Earmmarked Grant is made. On these grounds, we propose that municipal budget structure to be modified as in following: Current Municipal Level Budget Structure Programme: and Science Sub-programme: Administration Proposed Structure Programme: Sub-programme: Planning, 10
Preschool and Kindergartens Primary Secondary Administration General (Primary and Secondary), Vocational Link of New Sector-Wide Structure with Performance Indicators In the MTEF 2015-2017, Ministry of, Science and Technology introduced key performance indicators which are divided by aggregated programmes "Pre-university ", "Higher and Science" and "Services of the Administration". Although this introduction has been a good step to measure the MEST progress in certain policies, however within each programme there were indicators that will fully enable the measurement of implementation of a specific objective related to certain programme. E.g. in the case of the first objective related to Inclusion and quality improvement in preuniversity education, if considered only the Inclusion, set indicators are focused only on the inclusion of students with special needs, but not other key indicators to measure the overall inclusion of pupils in education as can be pupils dropout rate or indicator on the primary pupils enrolment rate or similar. In this case, such indicators could accurately show the achievements and improvements in inclusion of children in pre-university education, including the inclusion of children with special needs and minorities. In accordance with the new Sector-wide structure, and in order to link this structure with measurable indicators, and also referring to the findings of the "Progress Report 2014 - Annual Joint Review - Kosovo Strategic Plan" recommended the inclusion of an additional number of key performance indicators that will directly linked with proposed above sub-programmes: Programme/ Sub-sector General preuniversity Higher Indicators 1 Enrolment rate of children in preschool education (3-5) 2 Primary pupils enrolment rate 3 Number of children with special needs 4 Number of teachers with special needs 5 Pupil/class ratio 6 Pupils dropout rate 7 Pupil/teacher ratio 8 Achievements in Matura test 9 Number of licensed teachers 10 Number of schools that implement new curriculum 11 Percentage of schools operating in shifts 1 Average annual expenditure per student capita 11
2 Average annual operational expenditure per student capita expressed as a percentage of GDP per capita 3 No. of Students in University 4 Student/academic personnel ratio 5 Participation in Higher of age group 18-25 6 Number of students per 100,000 inhabitants 7 Number of graduates within one academic year 8 No. of short-term mobility 9 No. of annual PhD Grants 10 Graduate employment outcomes* Science and Technology Vocational 1 Science and Technology Expenditures as a percentage of GDP 2 No. Science personnel 3 No. of overall scientific publications 4 No. of scientific publication by KASA 5 No. of scientific publication by Institute of Albanology 6 No. of scientific publication by Institute of History - Prishtina 7 No. of scientific publication by Leposavic Institute 1 Number of pupils and internship time spent in enterprises 2 The number of enterprises engaged in providing internship 3 Schools with appropriate equipment 4 No. schools with career guidance 12
Annex 1: Draft Sector MTEF Structure Sector -Wide MTEF structure Draft for Discussion, Science and Technology Science and Technology Higher Pre-university General Vocational Planning and Administration 231 Sciences and Arts Academy 175 Sciences and Arts Academy 913 Sciences and Arts Academy 208 110 MEST Higher and Science 970 Institute of Albanology Prishtina 905 Students Centre 971 Institute of History Prishtina 917 Bilateral Agreements 972 Institute of Leposavic 919 University of Prizren 982 Capital Investments in Higher 973 Accreditation Agency 918 Kosovo Pedagogical Institute 974 University of Pejas 982 Capital Investments in HE and Science 977 University of Gjilan 978 University of Gjakova 979 University of Mitrovica 982 Capital Investments in HE and Science 111 Pre-university 900 National Qualification Authority 975 VET Agency 908 Special Needs 981 Capital Investments in Pre-university 910 Teachers Development 911 Curricula Development 925 Basic Program 981 Capital investments in Pre-university 155 General Administration 113 General Administration 114 980 Minister`s Office Inspectorate in Kosovo 242 University of Prishtina 112 University of Prishtina 904 University of Prishtina 6xx Municipalities 6xx and Science 924 xx Pre-primary 942 xx Secondary ( 56 %) 920 xx Administration 933 xx Primary (44 %) 942 xx Secondary (44 %) 13
Existing Structure Annex 2: Proposed Structure for Ministry of, Science and Technology Science and Technology Proposed MEST Budget Structure 208 Ministry of, Science and Technology Proposed Structure Science and Technology Higher Pre-university and General Vocational Planning and Administration 110 Higher and Science 970 Institute of Albanaology Prishtina 905 Students Centre 971 Institute of History Prishtina 917 Bilateral Agreements 972 Leposavic Institute 919 University of Prizren 982 918 9 xx Capital investments in Higher Kosovo Pedagogical Institute Capital projects in Science and Technology 973 974 977 978 Accreditation Agency University of Peja University of Gjilan University of Gjakova 979 University of Mitrovica 9xx Capital Projects in Higher 111 Pre-university 900 908 910 National Qualification Authority Special Needs Teachers Development 975 9xx VET Agency Capital Projects in Vocational 911 Curricula Development 925 Basic Program 9xx Capital Projects in Gen.. Pre-u. Edu. 155 General Administration 113 General Administration 114 Minister`s Office Inspectorate 980 in Kosovo 14
Struktura Ekzistuese Annex 3: Proposed Structure oof Municipal Level Budget, Science and Technology Proposed Structure of Municipal Level Budget 6xx Municipalities Proposed Structure 920 Planning and General 920 xx 922xx Administration Pre-un.. 933 xx Vocational 920 and Science 920 xx Administration 924xx Preschool and Kindergartens 945 xx Vocational 933xx Primary 945xx Secondary 15
Annex 4: Programme Structure Usually the programme structure is set pursuant to the needs of policymakers and requirements on public finances monitoring and control. However, a good programme structure, should suite best to decision-makers since it enables easier management of policies within the programme, and ensures that policy goals are achieved through the mid-term objectives and products/services planned within budget, and reflected in the Ministry`s Work Plan as well as in Ministry`s Annual Procurement Plan. A programme should include activities and work related to a policy field, which in the case of, Science and Technology, these fields are relevant subsectors. Below are some of the programme requirements:: Title Description Level Programme Policy Description Presents an overview of the main methods that the programme intends to use in order to achieve its goals and objectives. Here can be described any Strategic/Policymaking management arrangements that sector/ministry chooses to policy Outcomes Programme Goals and Medium Term Objectives management within the programme. These should be defined in a specific and measurable way, however, their achievement is more desired, since relates to long-term goals. Their clear determination, facilitates performance indicators determination. Such desired goals would be: Growth of Matura test passing to x% by 2020. The decrease of dropout rate by x% by 2022 Etc. Medium Term objectives should be SMART and formulated for a medium term. Medium term objectives are only intermediate steps toward achieving goals or outcomes, however, they should be within the available, distinguishes from goals, and turn them not in desire, but into a specific aim to be 'achieved. E.g. Elimination of third shift by 2019. Third shift usually is caused by overload of school facilities, and such a phenomenon usually occurs in urban areas. As a solution could be, the construction of new spaces that can be arranged as a project, and the provision of transport services for the transportation of students to schools with lower number of students in 16 Strategic/Policymaking Strategic/Policymaking / Operational (3 years)
Outputs Activities comparison to the space available. This leads to the determination of outputs. Products implies goods and services to be created or produced to achieve the objectives and goals. If we take the previous example, a product may be: Construction of xx m2 of school facilities in the 1st, 2nd, and 3rd year. Xx scientific publications in different subjects in year 1, xx in year 2, xx in year 3. Specific actions carried out to produce or create a product, e.g. - The announcement of the call for research - Selection ; - Scientific outcome analysis, - Publishing, etc. It is the activities which consume resources, such as human resources as well as materials, and care should be given while budgeting by using properly the charter of accounts. Operational (1-3 years) Operational 1 year. 17