Kaduna State Government

Kaduna State Government Process Guidelines Ministry of Economic September, 2013

Table of Contents Abbreviations and acronyms... 3 Section 1: Introduction... 4 1.1 Background... 4 Figure 1: State Level Cycle... 5 Section 2: Fiscal... 6 2.1 Medium Term... 6 2.2 Activities, Tasks and Responsibility... 7 Section 3: Annual... 11 3.1 Introduction... 11 3.2 Activities, Tasks and Responsibility... 11 Section 4: Preparation... 15 4.1 Introduction... 15 4.2 Activities, Tasks and Responsibility... 15 Section5: Execution and Control... 19 5.1 Introduction... 19 5.2 Activities, Tasks and Responsibility... 19 Section 6: Performance Monitoring, Evaluation and Reporting... 21 6.1 Introduction... 21 6.2 Activities, Tasks and Responsibility... 21 Annex 1: Stakeholders in the Process... 22 2

Abbreviations and acronyms AIE Authority to Incur Expenditure CSOs Civil Society Organisations DPRS of Research and Statistics EXCO Executive Council FSP Fiscal Strategy Paper KSDP Kaduna State Development Plan MDAs Ministries, s and Agencies Ministry of Economic MTEF Medium Term Expenditure Framework MTSS Medium Term Sector Strategies NGOs None Governmental Organizations NPC National Commission SAVI State Accountability and Voice Initiative SEC State Executive Council SHoA State House of Assembly 3

Section 1: Introduction 1.1 Background In the recent past Kaduna State Government has embarked on several initiatives aimed at improving its preparation process, with the support of international development partners. In order to effectively achieve the objectives of ing, various functions, activities and tasks of the process have to be properly managed. This requires that different activities and tasks have to be clearly identified, deadlines for the activities and tasks specified and adhered to, and the responsibility for delivery specified. This Process Guidelines consolidate identified existing process activities and tasks in order to ensure that the processes in the State accommodate all internationally acknowledged best practices. The guidelines document functions, activities, tasks, deadlines and responsibility to be followed by the Kaduna State Ministry of Economic () and Ministries, s and Agencies (MDAs) in the preparation and implementation of annual s. A is a plan expressed in monetary terms which outlines Government policies, programmes, projects and activities usually within a fiscal year. It is also a statement of intent regarding revenue to be generated, activities to be committed and the benefits or results expected over the given fiscal period. The provides the means by which strategic objectives of the State Government are translated into services, programmes and activities that meet the social and economic needs of citizens. ing enables the State Government to implement and achieve the goals stated in its development policy document, such as the Development Plan, in a particular fiscal year. These guidelines would facilitate the effective and efficient management of the process of Kaduna State. ing is undertaken annually and the process has to be managed to achieve its objectives. The process involves the following broad stages: Fiscal ; Annual ; Preparation; Execution and Control; Performance Monitoring, Evaluation and Reporting. The process is illustrated in Figure 1. The guidelines documented are aimed at providing guidance for linking policy making, planning and ing, stakeholders participation in the process as well as performance monitoring, evaluation and reporting. 4

Figure 1: State Level Cycle Cycle Step 5: Monitoring & Evaluation Step 1: Fiscal Step 4: Execution & Control Step 2: Annual Step 3: Preparation 5

Section 2: Fiscal 2.1 Medium Term Fiscal planning lays the foundation for effective and efficient resource allocation, utilisation and management. It positively impacts on ary outcomes of the State at three levels as follows: Aggregate fiscal discipline; Allocation of resources based on strategic priorities; Effective and efficient utilisation of resources in the implementation of strategic priorities. Kaduna State undertakes strategic planning based on the Medium Term Expenditure Framework (MTEF) which has the following components: Realistic multi-year macro-economic projections of total resources; Top-down comprehensive multi-year sector resource envelopes or ceilings; Bottom-up sector strategies, targets and priority initiatives that are costed, i.e. medium term sector strategies (MTSS); Multi-year expenditure estimates of spending MDAs derived from allocation of total resources based on priorities. Kaduna State utilises a revenue forecast template to effectively undertake multi-year macroeconomic projections of total resources and medium term fiscal planning. Also, a template for sector resource ceilings is used to prepare comprehensive multi-year sector resource envelopes or ceilings for annual ing. In addition, the States embarks on multi-year ing with the presentation of three years revenue and expenditure estimates on a rolling basis. The linking of MTEF and annual process is illustrated in Figure 2. 6

Figure 2: Linking MTEF and Annual Process Medium Term Framework Setting 3-Year Fiscal Targets Allocation of Resources to Strategic Priorities Economic and Fiscal Update Fiscal Framework Statement Policy Statement MTSS Call Circular Preparation of Proposals Negotiation/Defense State Compilation of Portfolio Proposals Reconciliation State Treasury State EXCO - State Assembly MDAs 2.2 Activities, Tasks and Responsibility Activities and tasks of the fiscal planning sub-process are as follows: Key functions Determination of Government policy and broad strategies; Estimation of the total revenue of the year and presentation of the revenue profile to the State Executive Council (EXCO) for approval; Development of a Fiscal Strategy Paper (FSP) and presentation to EXCO for approval; Presentation of Fiscal Strategy Paper to the State House of Assembly (SHoA). 7

Steps, Output, Responsibility and Timeline S/No Main function/activity 1 Determination of government policy Task/Step Main Output Responsibility When Due Policy May framework i. Define the policy direction of the government and produce a policy framework ii. Organise retreat for planning/ officers in the state on planning functions and activities. iii. Collection and collation of policy documents from MDAs/National Commission (NPC) and also familiarization visits to NPC and other states. iv. Organise sensitization workshop for Legislators, State Executive Council, Permanent Secretaries, Directors Research and Statistics of MDAs on policy issues. v. Production and distribution of harmonised report on all sector policies. Retreat for all planning/ officers organised Policy document collated / Policy guide Policy makers sensitized on policies Policy document published / Schedule officers, State June June 2 Estimation of the total revenue of the year and presentation of the revenue profile to the State Executive Council (EXCO) for approval. i. Half year revenue performance review ii. Sensitisation workshop on revenue generation iii. Issuance of revenue call circular to MDAs MDAs half-year performance report All revenue collecting MDAs sensitised Call circulars produced and distributed to MDAs August Septem ber June 8

iv. Analysis of revenue proposal submitted by MDAs to be used by Estimate Committee Members at revenue defense v. Estimate Committee meet with revenue generating agencies to defend their revenue proposal vi. Estimate Committee meets to draft revenue profile and MDAs sectoral expenditure ceiling. vii. Collection and preparation of first draft viii. Disseminate call circular and ceiling based on revenue projected to all MDAs Analysed revenue proposals Revenue proposals Draft Revenue profile First draft Call circular/sector ceilings Estimates Committee / August 3 Development of a Fiscal Strategy Paper (FSP) for presentation for EXCO approval i. Development or review of state development plan (SDP) ii. Organise State Economic Summit to articulate on fiscal environment, economic conditions and fiscal projections iii. Training of MDAs on MTSS Revised Kaduna State Development Plan (KSDP) Harnessed exploration investment opportunity report. MDAs Trained on MTSS / SPARC March- June April iv. Review, printing and distribution of Kaduna 2020 v. Production of investment opportunity document iv. Articulation of fiscal and economic assumptions v. Organise sensitisation training on translation of state development plan to annual vi. Organise sensitisation and advocacy to State House of Assembly, State Executive Published Kaduna vision 2020 MDAs trained on SPR Fiscal and economic assumptions to support FSP Policy makers sensitized on policies Advocacy visit report May May May August 9

Council, Permanent Secretaries, Director Research and Statistics (DPRs) on incorporation of MTSS into Annual. vii. Organise review meetings with MDAs, DPRSs on KSDP viii. Production and distribution of harmonised report on all sector policies. v. Prepare or revise fiscal strategy paper Medium Term Sector Strategy (MTSS) sensitization report Revised Kaduna State Development Plan (KSDP) Published Policy document Revised fiscal strategy paper May 4 Presentation of Fiscal Strategy Paper to the State House of Assembly (SHoA) i. Notification of SHoA through relevant committee ii. Submission of FSP to the House iii. Agreement on date for interactive section between Ministry of Economic and State House of Assembly iv. Revision of FSP based on state assembly s comments. Acknowledged notice by SHoA Acknowledged notice by SHoA Acknowledged notice by SHoA Revised FSP August 10

Section 3: Annual 3.1 Introduction Kaduna State has made significant achievements in planning in the past few years. These are in the areas of issuance of revenue call circulars with revenue template and adequate information to guide MDAs in the preparation of revenue proposals, preparation and issuance of indicative sectoral expenditure ceilings to MDAs for the MTSS process, etc. However, adherence to the specified calendar has been a major challenge. In most cases the calendar is not followed and process activities and tasks are completed several weeks after the deadlines. 3.2 Activities, Tasks and Responsibility Below are activities and tasks of the planning sub-processes: Key functions Analysis of immediate Past Year s Performance; Review of Calendar; Preparation and issuance of Revenue Call Circular to MDAs with template on revenue proposals; Preparation and submission of revenue proposals by MDAs; Analysis of revenue proposals submitted by MDAs; Preparation of timetable for defense of revenue proposals by MDAs Defense of revenue proposals of MDAs to the Estimates Committee; Consolidation of revenue proposals from MDAs and compilation of total internally generated revenue; Estimation of recurrent expenditure and determination of resource to be transferred to the Capital Development Fund; Drafting of indicative Sectoral Expenditure Ceilings based on revenue forecast and priorities of Government and presentation to EXCO for approval; Issuance of indicative Sectoral Expenditure Ceilings to MDAs for the development of MTSS; Conduct of Preparation Workshop for MDAs. 11

Steps, Output, Responsibility and Timeline S/ Main No function/activity 1 Analysis of immediate past year s performance Task/Step Main Output Responsibility When Due i.carry out performance trend analysis for 3 years ii. Compilation and analysis of prior year releases iii. Collection and collation of all special releases, expenditure returns and monthly review performance returns from all MDAs iv. Matters arising from analysis of immediate past year s performance discuss by stakeholders Analysed 3 years performance Compiled releases Analysed monthly returns Stakeholders comments on performance trend / State / State / State / State May March Monthly April 2 Review of calendar i. Review approved annual calendar for previous year ii. Determine necessity for amending calendar based on current realities iii. Stakeholders agreement on proposed amendment to calendar iv. Revised calendar incorporating stakeholders input. Reviewed previous year calendar Areas of amendment in annual calendar identified Approved amendment to calendar by stakeholders Revised calendar produced HE / April April April April 3 Preparation and issuance of revenue call circular to MDAs with template on revenue proposals. i. Production and distribution of revenue call circular Revenue call circular distributed June 12

ii. Issuance of revenue circular to MDAs iii. Issuance of circular to MDAs with final ceiling and using CDs Call circulars produced Final call circulars with ceiling June September 4 Preparation and submission of revenue proposals by MDAs i. Conduct workshop on preparation for all MDAs ii. Half year performance review iii. Final day for MDAs to submit detailed proposal MDAs sensitized on preparation Reviewed MDAs half-year performance proposals by MDAs August August September 5 Analysis of revenue proposals submitted by MDAs Analysis of revenue proposal submitted by MDAs to be used by Estimate Committee Members at revenue defense Analysed revenue proposals Estimates Committee / MOEP 6 Preparation of timetable for defense of revenue proposals by MDAs Issuance of revenue call circular to MDAs specifying timeline for defense of revenue proposals Revenue Call circulars. June / 7 Defense of revenue proposals of MDAs to the Estimates Committee Defense of revenue proposals by MDAs Draft revenue proposal Estimates Committee/ 8 Consolidation of revenue proposals from MDAs and compilation of total internally generated revenue i. Aggregation of revenue statistics provided by MDAs ii. Determination of projected internally generated revenue for the state iii. Collection and preparation of first draft Aggregated state revenue statistics Total projected internally generated revenue for the state First draft prepared / State s June / June / 13

9 Estimation of recurrent expenditure and determination of resource to be transferred to the Capital Development Fund i. Compilation and analysis of prior year releases ii. Collection and collation of all special releases, expenditure returns and monthly review of returns from MDAs. iii. Negotiation of recurrent expenditure with MDAs based on past statistics iv. Determination of excess in consolidated revenue fund account and transfer to Capital Development Fund Compiled releases Expenditure returns Recurrent expenditure ceilings for MDAs Capital Development Fund / State s / State departments. March Monthly September September 10 Drafting of indicative sectoral expenditure ceilings based on revenue forecast and priorities of government and presentation to EXCO for approval. Issuance of guidelines with indicative MDAs envelop guidelines 11 Issuance of indicative sectoral expenditure ceilings to MDAs for the development of MTSS Training of MDAs on MTSS MDAs Trained on MTSS / Training Manual. Indicative ceilings April 12 Conduct of preparation workshop for MDAs i. Sensitisation workshop on revenue generation ii. Conduct workshop on preparation for all MDAs All MDAs sensitised / Training Manual MDAs sensitized on preparation September August 14

Section 4: Preparation 4.1 Introduction Some achievements have been made by the State in preparation. circulars issued by are robust and address most of issues with respect to information provided to MDAs on the preparation of proposals. The circulars issued annually to MDAs for the submission of proposals include sector resource ceilings. 4.2 Activities, Tasks and Responsibility preparation involves the following activities and tasks: Key functions Issuance of call circular with final sectoral expenditure ceilings approved by EXCO to MDAs; Preparation and submission of recurrent and capital proposals by MDAs; Analysis and integration of proposals; Preparation of timetable for defense of proposals; Setting of modalities for MDAs defense by Estimate Committee Holding of meetings for defense of recurrent and capital expenditure ; Consolidation of draft of estimated revenue and expenditure; Presentation of draft to Governor for review and comments; Effecting adjustments and corrections based on comments by Governor; Preparation of Governor s Speech; Presentation of draft to EXCO through a Council Memo; Presentation of Draft and Governor s Speech to SHoA in the form of an Appropriation Bill; Defense of proposals at SHoA Committees; Review and approval of ; Harmonisation of changes to effected by SHoA Assent by the Governor; Public presentation and analyses of ; Production and distribution of copies of Approved to MDAs and other parties. 15

Steps, Output, Responsibility and Timeline S/N Main function/activity Task/Step Main Output Responsibility When Due 1 Issuance of call circular with final sectoral expenditure ceilings approved by EXCO to MDAs Issuance of call circular to MDAs with final ceiling and using CDs Final call circulars with ceiling. September 2 Preparation and submission of recurrent and capital proposals by MDAs i. Sensitization workshop on revenue generation ii. Conduct workshop on preparation for all MDAs iii. Collation and compilation of capital proposals for all sectors iv. Compilation and analysis of contractual commitment and other releases for the preceding year v. Conduct half year performance review vi. Prior years capital performance analysis vii. Final submission of detailed proposal by MDAs All MDAs sensitised MDAs sensitized on preparation Draft capital produced Compiled contractual commitment MDAs halfyear performance report Capital performance report Final proposal / State / State MDAs / August - March August February September 3 Analysis and integration of proposals i. Collation and preparation of first draft First draft prepared / State 16

ii. Presentation of draft to His Excellency for perusals, comments& input iii. Effecting corrections/amendme nt by ministry of economic planning vide His Excellency s observations& inputs Memo to HE forwarding draft Amended draft Hon. Commissioner November 4 Preparation of timetable for defense of proposals i. Final day for MDAs to submit detailed proposal ii. Analysis of MDAs proposals MDAs proposals MDAs proposal. MDAs/ September September 5 Holding of meetings for defense of recurrent and capital expenditure Submission of all MDAs proposal Collation & Submission / State 6 Consolidation of draft of estimated revenue and expenditure Organise defence of proposal defended by MDAs Estimate Committee 7 Presentation of draft to Governor for review and comments Collection and preparation of first draft after defense Production of first draft prepared 8 Defense of proposals at SHoA committees i. Presentation of draft to His Excellency for perusals and comments ii. Effecting correction/amendment s by Ministry of Economic vide His Excellency s observations Draft submitted to His Excellency Amended draft Hon. Commissioner November 9 Preparation of Governor s Review and approval of proposal by the Approved SHoA November 17

speech State House of Assembly 10 Analysis and integration of proposals i. Collection and collation of proposals from MDAs ii. Reviewing proposals from MDAs to ensure that they are within the indicative ceiling proposals Agreed proposal 11 Preparation of timetable for defense of proposals Preparation of timetable for defense of proposals Defense timetable / August 12 Defense of proposals at SHoA committees Defense of proposals at SHoA committees SHoA November/ December 13 Review and approval of Review and approval of Final draft / SHoA December 14 Harmonisation of changes to effected by SHoA Harmonisation of changes to effected by SHoA Amended / House Committee December 15 Assent by the Governor Assent by the Governor Assented HE December 16 Public presentation and analysis of Public presentation and analysis of summary January 17 Distribution of copies of approved to MDAs and other parties Distribution of copies of approved to MDAs and other parties Distributed books (working copies) February 18

Section5: Execution and Control 5.1 Introduction This section of the Process Guidelines documents the activities, tasks and responsibility for ensuring that actual expenditure reflects priorities and sound expenditure accountability is achieved. 5.2 Activities, Tasks and Responsibility The following activities and tasks are undertaken during execution and control: Key functions Preparation and issuance of Guidelines for implementation as soon as the Appropriation Law is passed; Issuance of Releases of Monthly Salaries, Overheads Cost and standing orders for all MDAs Preparation and issuance of general expenditure warrants, i.e. authority to incur expenditure by the Accountant General; Preparation of Supplementary when there is additional revenue or re-allocation of funds; Preparation of Revised based on review. Steps, Output, Responsibility S/No 1 Main function/activity Preparation and issuance of guidelines for implementation as soon as the appropriation law is passed Task/Step Main Output Responsibility When Due i. Prepare guideline for implementation. ii. Produce and distribute to MDAs implementation guideline February 2 Issuance of releases of monthly salaries, overheads cost and standing orders for all MDAs Analysis and make available all necessary approvals with respect to salaries & standing order Monthly releases Monthly 3 Preparation and issuance of financial warrants, i.e. authority to incur expenditure by the Prepare and distribute to MoF, Auditor General & Attorney General authority to incur Financial warrants February 19

Accountant General expenditure (AIE) for implementation 4 Preparation of supplementary when there is additional revenue or reallocation of funds Analyse the current & obtain approval from HE for any additional funds Supplementary and s When necessary 5 Preparation of revised based on review Analysis of implementation for the current year Revised and s August 20

Section 6: Performance Monitoring, Evaluation and Reporting 6.1 Introduction This section of the guidelines describes activities, tasks and responsibility that would enhance the capacity of the State for monitoring, evaluation and reporting. 6.2 Activities, Tasks and Responsibility Activities and tasks undertaken under performance monitoring, evaluation and reporting are: Key functions Monthly collection and collation of all special releases, expenditure returns performance review returns from all MDAs; Quarterly reconciliation of releases and actual payments; Preparation of quarterly, mid-year and annual performance reports. Steps, Output, Responsibility and Timeline S/No. Main Function/ Activity Task/Step Main Output Responsibility When due 1. Monthly collection and collation of all special releases, expenditure returns performance review returns from all MDAs 2. Quarterly reconciliation of releases and actual payments Produce template for analysis of implementation Analysis of provision & releases implementation report performance report & State / MoF Monthly Quarterly 21

Annex 1: Stakeholders in the Process A. Internal Stakeholders: Ministries, s and Agencies (MDAs); B. External Stakeholders: The State House of Assembly International Development Partners; Local Governments Professional Organisations; Civil Society Organisations/Non-Government Organisations (CSOs/NGOs); Gender and Social Groups; Trade Unions; Traditional and Religious Institutions; Community Development Associations; Youth Organisations; Association of Physically Challenged Persons etc. 22