Ghana Harmonisation and Aid Effectiveness Action Plan 1

Ghana Harmonisation and Aid Effectiveness Action Plan 1 Group A: Country Environment National strategy (indicator 1) Country Fiduciary Systems (indicator 2a + 2b) Country Results Framework (indicator 11) Group B: Program-based Frameworks Coordinated Technical Cooperation/TA (indicator 4) Program-based aid modalities (indicator 9) Country Analytic Work (indicator 10b) Group C: Transaction Costs Arrangements for sector support (indicator 3) Use of Country Systems (indicator 5a + 5b) Use of Parallel PIUs (indicator 6) Use of tied aid (indicator 8) Predictability of aid (indicator 7) Visiting missions (indicator 10a) Group D: Partnership Framework Mutual Accountability (indicator 12) 1 Please note that these tables are extracted from the country level sections of the Ghana Harmonisation and Aid Effectiveness Action Plam, endorsed by the November 2005 Consultative Group Meeting. 1

Group A: Country Environment #1 (1) Outcomes in GPRS II are reflected in MDAs MTEF GoG revises the GPRS II incorporating recommendations from CG and stakeholder consultations to produce a comprehensive, prioritised, resultsoriented NDPC, MoFEP(EP), Pillar working groups, civil society Dec.2005 Revision of GPRS II incorporated some CG and APRM recommendations, but weak on prioritisation and results orientation. Budget development programme GoG issues Final GPRS II document GoG March Done. Issued February NDPC/MOFEP develop an educational programme NDPC, MoFEP April Communication strategy developed and roll out for MDAs & Parliament on the GPRS II and on institutional roles and best pr actices plan initiated NDPC conducts training as per roll out plan NDPC May-July On-going. District level training to start end NDPC/MOFEP identify leaders in all MDAs with good understanding of the GPRS and how their departments interface with the GPRS II MDAs prepare detailed sector strategic plans/results-based programs (with targets and implementation strategy) and MTEF budgets based on GPRS II (see also Indicator 4) DPs provide to MOFEP annual projections on all donor funded activities supporting GPRS II (see also Indicator 7) NDPC, MoFEP-Budget Division MDAs/MoFEP with DP support May-July : Agriculture Education Health Water 2007: Communicatn Energy Roads Tourism DPs By July 1 each year May, to be followed by MDA training. On-going. Initiated. District planning guidelines issued in April 06 and sector planning guidelines to be issued in June to MDAs. Done. Update completed in preparation for June CG 2

Group A: Country Environment #2 GoG implements Financial Administration and Internal Audit Acts (2a) Ghana PFM CPIA score substantially improves over the period (2a) Ghana PFM CPIA score substantially improves over the period CAGD/IAA finalise and issue Legislative Instruments for Audit, Manuals, Standards, Programmes and Instructions CAGD integrates Treasuries into the MDAs GoG (MoFEP, CAGD, IAA) On-going Financial Administration Act : - treasuries realigned - special Bank accounts opened for all MDAs, RCCs, and MMDAs. - systems in place for decentralised financial management Internal Audit Reform: - a 3-Year Strategic Plan is under implementation - Audit standards and audit programmes are under development for all MDAs and MMDAs (due date Sept 06) - Standard audit manuals & programmes are being developed for adoption by MDAs and MMDAs - Training programmes for Internal Auditors for all MDAs and MMDAs are on-going (230 IAs trained by May 06) CAGD, IAA End - Consultant recruitment for accounting manuals and Departmental accounting instructions is at an advanced stage - Internal Audit regulations being developed (due by Dec 06). CAGD End Done. Bank accounts opened and treasury operations are functional at decentralised level since May (22 for ministries, 10 for regions, 138 for MMDAs = 180 in total) 3

CAGD/MOFEP replace manual processes for Budget Releases with BPEMS to ensure uniform implementation at MDA level CAGD, Budget Division End Done. On-going process (2a) Ghana PFM CPIA score substantially improves over the period CAGD/MOFEP use BPEMS for budget releases & budget reporting at nat l level CAGD rationalises banking arrangements for MDAs at the regional and district levels (consolidated funds, subaccounts for departmental allocations) GoG agrees on Tribunal mechanism and initiates process of establishment CAGD/IAA carry out training programmes on financial administration and internal audit (see also Indicator 4) CAGD, Budget Division End On-going. Key functions of BPEMS are operating in MOFEP, CAGD, and MOH CAGD End Done. Banking arrangements streamlined as part of wider effort to realign treasury functions and improve payment systems. MoFEP, Attorney-General, Judiciary CAGD, IAA End 2007 ongoing activity Not done still under discussion On-going. Training is on-going for: - treasury realignment. - public accounting and Departmental account reporting (sect 40 and 41 of the FAA 654) - internal audit (230 Internal Auditors trained by May ) 4

Group A: Country Environment #2 (2b) Ghana Round Table Procurement score substantially improves over the period GoG implements Public Procurement Act, 2003 PPB develops legislative instruments (LIs) for implementation of Act 663 GoG (MoFEP, PPB) PPB On-going End On-going In process. Draft legislative instruments have been prepared for submission to Parliament PPB designs and establishes standards for monitoring procurement processes PPB issues Operational Manuals to GoG staff PPB monitors selected MDAs using PPME tool and issues quarterly reports As part of Budget Process, MDAs submit Procurement Plan to entity Tender Committee (linked to Expenditure Mgt, Payment and Audit Processes) PPB conducts training programmes in conjunction with IAA and CAGD (see also Indicator 4) PPB establishes Complaints Mechanism PPB End Done. Public Procurement Model of Exellence (PPME) incorporates the OECD Round Table indicators, which are key assessment criteria under the Paris Declaration. PPB End In process. Drafts manuals have been developed in consultation with stakeholders, and will be issued to GoG staff as part of training activities in last quarter PPB Starting March In process. PPME was used for assessing 100 entities (reports are available). The next 100 entities will be assessed by March 2007. PPB/MDAs/IAA On-going Submission of procurement plans by MDAs & MMDAs has not been encouraging. PPB has accordingly written to MoFEP to link release of funds to procurement plans. Response from MOFEP is pending. PPB On-going In process. A joint training programme was initiated in Dec 05 and is on-going. PPB End Not done still under discussion 5

Group A: Country Environment #3 (11) Clear linkages established between GPRS II and annual and multi-annual budget processes GoG and DPs agree on a phased plan for improving results-oriented assessment & reporting frameworks that monitor progress on GPRS II and sector plans (linked to Indicators 1 and 4 and 9) GoG and DPs / harmonisation WG + sector groups : Agriculture Education Health Water Yearly GPRS annual progress review (APR) and annual sector progress reports are released in a timely way and influence budget for subsequent year(s) DPs and GoG discuss harmonisation of indicator types in the context of budget and sector support, in order to facilitate realistic and meaningful results-based reporting DPs will use a single framework of conditions for budget support and for sector wide approaches DPs will use indicators derived from the national development strategy or detailed sector strategies for project assistance GoG DPs + GoG / harmonisation WG 2007: Communicatn Energy Roads Tourism By April of each year By March - Phased plan for results-oriented capacitybuilding at national level being discussed by GoG/DPs (EBPM project) - No formal agreement about phasing of capacity-building at sector level - discussions on-going in Agric & Water sector The draft 2005 APR was circulated in May and final report is expected by end-june. Delays in finalisation were linked to data reporting by MDAs. Annual sector progress reports do not currently have a synchronised reporting cycle. - DP/GoG consensus that MDBS indicators should be harmonised with the GPRS II indicators. - GPRS II indicators were provided to DPs in May and MDBS harmonisation is in progress. DPs/GoG From MDBS PAF being developed as single framework. DPs/MDAs From Sector frameworks not available in many cases 6

Group B: Program-based Frameworks #1 GoG defines capacity building requirements drawing on national and sector strategies MOFEP/MDAs End Capacity-building strategy for MOFEP and its departments is under preparation Lack of information about other national/sectoral (4) Technical cooperation is provided within a coordinated framework supporting national and sector CB requirements GoG and DPs agree on initial list of themes for coordinated TC programs (eg) PFM, PC, M&E, sector programs DPs and GoG exchange views on who is well placed to provide support in priority areas and who will carry the process forward for each coordinated TC programme DPs and GoG develop co-ordinated TA/ training plans to support CB requirements DP-GoG / harmonisation working group DP-GoG / harmonisation working group March March DPs + MDAs By end Not yet started capacity building strategies List of priority themes for coordinated TC programs not yet agreed. Proposal to conduct survey at sector level to collect data on extent of coordinated TC programs. Lead responsibilities not yet agreed pending agreement on priority themes 7

Group B: Program-based Frameworks #2 (9) Increased use of programme-based aid modalities and reduced transaction costs for GoG/MDAs GoG and DPs agree on a timetable for introducing SWAps in all sectors, eg: : Agriculture, Water? 2007: Decentralization, M&E, PSR? 2008: Education, Roads, Energy? GoG, DPs March No agreement on overall timetable, but a clear move towards the implementation of SWAPs in Water and Agriculture has been made at the sector level. A SWAp roadmap was issued in May 06 for the Agric sector and a DP study is to GoG and DPs take stock of current sector groups and compile current list of DP-GoG sector leads GoG and DPs agree on steps to optimize sector group framework (may or may not involve reduction in number of groups) GoG and DPs develop and implement good practice operating procedures for sector / thematic groups (including expectations regarding joint missions) DPs document focus areas and prepare inventory of in-house advisory capacity GoG, DPs / harmonisation working group End January be launched in June 06 for the Water sector Done. List of DP sector leads and GoG sector leads has been compiled. Discussion paper ( guide ) on sector groups was shared with Government in mid-june Technical harmonisation WG March In process. DPs have developed draft proposals for how to strengthen sector groups as a forum for policy dialogue and coordination. Discussion with GoG planned on basis of sector discussion paper. GoG, DPs (thematic groups) May In process. DPs have developed draft proposals for discussion with GoG which are presented in the sector group guide DPs End January Initiated. Inventory process started in May 8

(9) Increased use of programme-based aid DPs increasingly manage funds for other DPs and/or engage them to DPs On-going RNE Health Adviser provides UK with health advice including policy guidance. modalities and reduced perform advisory tasks UK Education Adviser provides RNE and EC trans-action costs for with education advice including policy guidance. GoG/MDAs UK has given GTZ and Danida financial and accounting responsibilities for its assistance in the water sector. EC Transport Adviser will provide UK with sector advice, with UK acting as silent partner. 9

Group B: Program-based Frameworks #3 (10b) Joint country analytic work (CAW) increases. DPs share list of planned DP country analytic work for -2007 with each other and GoG DPs December 2005 DPs and GoG agree on areas for joint country analytic work (CAW), such as: targets, sequencing strategy, and monitoring system at sector level for GPRS II GoG, DPs (sector leads, MOFEP) March - Inventory process started - Agreement to use multi-donor CAW website for central depository of country analytic work Meeting to agree on prioritised CAW list not yet organized PFM and procurement diagnostic reviews (linked to country baseline) - Joint PEFA mission conducted Feb-Mar ; joint report expected June country economic analysis - Series of CAW in transport sector agreed jointly by GoG and DPs joint evaluation of MDBS country environmental assessment (CEA) analysis and consultation process for country assistance strategies GoG and DPs agree on specific TORs for agreed joint analytic reviews and initiate process DPs developing new country assistance strategies in agree to harmonise analysis and consultation processes GoG, DPs (sector leads, MOFEP) CIDA, DfID, EC, Germany, WB June On-going - Joint CEA report findings disseminated in Accelerating Growth workshop in May - Joint analysis and consultation process initiated for JAS in May - PEFA work (see above) based on joint TORs. Joint TORs for JAS process In process. JAS process initiated, with October target date for draft JAS report. Two tier framework for DP participation proposed: Tier 1: analysis and strategic principles (all DPs); Tier 2: joint programming (5 core DPs) 10

Group C: Transaction Costs #1 (3) Aid flows are aligned on national priorities GoG will provide feedback where DP sector support is not sufficiently aligned with GoG funding priorities MOFEP/NDPC March Proposed for discussion at June CG GoG & DPs strengthen Ghana Partnership Strategy (GPS) results matrices as tool for monitoring alignment Using donor mapping, explore scope for streamlining interventions Building on GoG-DP dialogue, initiate programme consolidation where feasible (including joint advisory & delegated funding arrangements) DP sector leads and MDBS co-chairs meet regularly to ensure that Sector and MDBS policy dialogues are consistent and complementary Following the GPRS APR and PRGF/ MDBS reviews, GoG-DPs hold Annual CG Meeting in time to inform the next year s budget cycle DPs-GoG (WB DP lead) June (by CG) Results matrices updated and outcome indicators refined (June ) Sector Groups to use matrices as monitoring framework GoG-DPs/ harmonisation March - Donor mapping deepened in Feb 06 meeting working group - Streamlining under discussion in context of JAS preparation DPs June Discussions starting in context of JAS GoG, DPs, MDBS Co-Chairs quarterly meetings Process initiated. Sector leads-mdbs review meeting (March + May) GoG, DPs (WB + MOFEP lead) June Planned: June 21, 11

Group C: Transaction Costs #2 Country Outcome Activities Responsibilty Target Current Status (5a) DPs increasingly use Ghana public financial systems for channelling aid flows DPs and GoG agree on framework to be used at country level for evaluating quality of PFM and for tracking progress (PEFA/CPIA discussion) GoG, DPs March Done. Agreed to use PEFA framework for country level monitoring. DPs and GoG agree on standards to be met for shifting to use of GoG financial management system (whether CPIA or PEFA based) Diagnostic review/performance assessment is conducted using agreed framework on an annual basis GoG, DPs By June (by next CG) GoG, DPs By March/April each year Done. Agreed to use Paris benchmarking system (CPIA) for target measurement Done: Baseline external review mission completed Feb/Mar. Report expected June (5b) DPs increasingly use Ghana s public procurement system for purchases of goods, GoG shares PPME monitoring tool with DPs to facilitate discussion of whether this framework can provide a harmonised basis for formal PPB March PPB to organize a meeting with DPs to present tool and assessment work underway. services and civil works procurement assessment at the country using aid funds level DPs and GoG agree on framework for formal performance assessment and frequency DPs and GoG agree on standards to be met for shifting to use of GoG procurement system (whether PPME based or Round Table based) First formal review carried out under harmonised framework GoG, DPs By June (by next CG) GoG, DPs By June (by next CG)?? independent evaluators?? By March/April each year Discussions on formal mechanism not started Discussions on tipping point not started 12

Group C: Transaction Costs #3 & 4 (6) Avoid parallel implementation structures DPs and GoG carry out sector by sector inventory of PIUs and PPIUs DPs and GoG agree on exit strategy for PPIUs at sectoral level DPs, MDAs, MOFEP, MPSR DPs, MDAs, MOFEP, MPSR March Dec Inventory process at DP program level starting (May ) No GoG PIU policy guidance available to guide development of sector exit strategies For, DPs and GoG agree on common practices and levels re: local, international and sitting allowances for use in all DP funded programmes DPs, GoG / harmonization working group Feb/March Done. 12 development partners and the UN family of agencies have agreed to a joint framework. The proposal has been shared informally with GoG. Joint letter has been signed and sent to Government. GoG revises allowance framework MOFEP Jan 2007 No progress to date applicable to civil service GoG adjusts allowance framework annually to maintain realism MOFEP 2008, etc. Country Outcome Activities Responsibility Target Outputs (8) Reduction in tied aid Collect baseline data on degree of tied aid to Ghana March Consultant hired and data collection underway Draft report circulated for comment to DPs DPs and GoG develop a programme to progressively untie Aid, including realistic targets December 13

Group C: Transaction Costs #5 (7) A joint DP aid framework (moving DPs schedule their funds for GPRS programmes on a multi-year basis toward multi-year) Overview table. DPs/GoG agree on common format for reporting on projected aid flows over multi-year horizon Each year, DPs provide multi-year, comprehensive information on projected aid flows DPs disburse support according to the schedules indicated in their multi-year projected aid flows submission (including MDBS support) DPs and GoG work to ensure that MDBS support is released by the first quarter of the budget year for which it is intended, or by June at the latest DPs/GoG agree on common format for reporting on programme expenditures DPs submit expenditure report according to agreed format on a quarterly basis DPs + MOFEP + Central Bank Dec 2005 Format not yet agreed DPs Submit by July 1 each year Done. DPs have reported multi-year projected disbursements for the CG DP Support Done. The DP Support Overview table was updated at the beginning of the budget process. DPs and implementing MDAs On-going Information on the timing of actual disbursement vs. planned disbursement for project-based aid is not available; consequently not possible to quantify delay and measure progress. DPs, GoG, IMF Starting Budget Year Harmonised timetable agreed for 2007 and beyond Release for expected by end-june DPs + MOFEP + Central Bank Dec 2005 Format not yet agreed DPs Starting January MoFEP to provide feedback on frequency of reporting. 14

Group C: Transaction Costs #6 (10a) Number of joint missions increases and predictability of visits is improved GoG and DPs will agree on core principles/good practices regarding mission scheduling and joint missions for application at the sector level GoG + DPs /harmonisation WG + sector groups December 2005 GoG and DPs will agree on the mission free period (MFP) to be observed during preparation of the budget each year. GoG and DPs will agree on sectors to pilot implementation of harmonised mission schedules & analytic work, eg: : Agriculture, Water, Energy? DPs implement the harmonised sector mission schedules and the MFP as agreed All DP visiting missions will meet with sector leads and share information with sector theme group DPs create a joint web-site for visiting mission data and agree to update it on a quarterly basis to facilitate coordination and improve annual tracking/reporting to DAC GoG, DPs / harmonisation WG December 2005 GoG, DPs (sector groups) March Not yet started DPs DPs DPs On-going On-going Starting January Draft proposal shared with sector groups and incorporated in sector group report ( guide ) Done. GoG and DPs have agreed that the MFP for budget preparation season will be from Sept 15 Nov 15 each year. Not yet started Ad hoc at present In process. Agreement to use multi-donor website hosted by WB for mission calendar. Mission calendar page under design. 15

Group D: Partnership Framework GoG and DPs form a local harmonisation Working Group to take the aid harmonisation and effectiveness process forward GoG, all DPs (membership at decision-making level) Dec 2005 (12) Progress in increasing aid harmonisation and effectiveness in Ghana is verified through an independent assessment mechanism and areas for improvement are identified. GoG and DPs agree on mutual evaluation mechanism and independent evaluators for monitoring performance on aid effectiveness commitments Independent evaluation for is completed and discussed at 2007 CG meeting GoG and DPs develop a mechanism to strengthen the parliamentary role in GPRS II and MTEF oversight GoG (lead?), DPs (lead?) June (by CG) Independent evaluators June 2007 (by CG) Done. In addition, DPs and GoG.have designated staff members as focal points for Action Plan priority themes Mechanism to be linked to broader JAS process and to MDBS; discussions starting (May ). Not due yet GoG (NGP), DPs March Not yet started 16