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Public Financial Management Reform
Programme (PFMRP)
Joint Supervision Mission
AIDE MEMOIRE (REPORT)
FINAL
16 Sept – 1 Oct 2013
4 Dec 2013
2
List of Acronyms (Not exhaustive)
AccGen
Accountant General
AFROSAI-E African Organisation of Supreme Audit Institutions – English speaking Africa
BoT
Bank of Tanzania
CAG
Controller and Auditor General
CPAD
Commissioner for Policy Analysis Division
CSOs
Civil Society Organisations
DAHRM Division for Administration and Human Resource Management
DASIP District Agricultural Sector Investment Programme
DCF Development Cooperation Framework
DEV
Development
DFIMS
Director of Financial Information Management Systems
DGAM
Director of Government Asset Management
DPs
Development Partners
EFT
Electronic Fund Transfer
GBS
General Budget Support
GCU Government Communication Unit (MoF)
GDP
Gross Domestic Product
GoT
Government of Tanzania
HCMIS
Human Capital Management Information System
IAS
International Accounting Standards
ICT
Information Communication & Technology
IFMS
Integrated Financial Management System
IMF
International Monetary Fund
IPSAS
International Public Sector Accounting Standards
ISSAI
International Standards of Supreme Audit Institutions
JAST
Joint Assistant Strategic Framework
KPA
Key Policy Action
KRA
Key Result Area
LGA
Local Government Authority
M&E
Monitoring and Evaluation
MDAs
Ministries, Departments and Agencies
MoF
Ministry of Finance
MoHSW
Ministry of Health and Social Welfare
MNRT
Ministry of Natural Resources and Tourism
MTEF
Medium Term Expenditure Framework
MTSPBM
Medium Term Strategic Planning and Budgeting Manual
NAO
National Audit Office
OC
Other Charges
OI
Outcome Indicator
PAC
Public Accounts Committee
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PAF
Performance Assessment Framework - General Budget Support
PBB
Program Based Budgeting
PEFA
Public Expenditure and Financial Accountability
PE
Procuring Entities
PFA
Public Finance Act
PFM
Public Financial Management
PMIS
Procurement Management Information System
PFMRP
Public Financial Management Reform Programme PMO-RALG
Prime Minister’s Office - Regional Authorities and Local Government
PO-PC President’s Office – Planning Commission
PO-PSM
President's Office - Public Service Management
PPA
Public Procurement Act
PPRA
Public Procurement Regulatory Authority
RAs
Regional Administrative Secretariat
SP
Strategic Plan
TISS
Tanzania Interbank Settlement System
TR
Treasury Registrar
TRA
Tanzania Revenue Authority
TWG
Technical Working Groups
VFM
Value for Money
WB
World Bank
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Table of Contents
Table of Contents ....................................................................................................................................................... 4
1. EXECUTIVE SUMMARY ................................................................................................................................... 5
2. METHODOLOGY ............................................................................................................................................ 9
3. OVERVIEW OF PFM TRENDS IN MAINLAND TANZANIA ............................................................................... 11
4. KEY RESULTS AREAS – STATUS REPORT ........................................................................................................ 16
4.1. KRA 1 - Revenue Management ............................................................................................................... 17
4.2. KRA 2 - Budgeting and planning.............................................................................................................. 18
4.3. KRA 3 - Budget Execution, Transparency and Accountability ................................................................. 20
4.4. KRA 4 - Budget Control and Oversight .................................................................................................... 22
4.5. KRA 5 - Change Management, Program Management and Communication .......................................... 24
5. PFM IN THE CONTEXT OF GBS ...................................................................................................................... 28
6. CONCLUSION ............................................................................................................................................... 33
ANNEX A: PFMRP IV M&E FRAMEWORK SEPT 2013 UPDATE .................................................................................... 37
ANNEX B: CHANGES TO PFMRPIV MILESTONE MATRIX BASED ON PEFA 2013 FINDINGS ...................................... 103
ANNEX C: CHANGES TO PFMRPIV MILESTONE MATRIX FOLLOWING JOINT SUPERVISION MISSION 2013 ............. 106
ANNEX D: PENDING PRINCIPAL PFM LEGISLATIONS .............................................................................................. 136
ANNEX E: TORS OF THE PFMRP JOINT SUPERVISION MISSION 2013 ..................................................................... 139
ANNEX F: MISSION PARTICIPATION FROM GOT (NOT EXHAUSTIVE) ...................................................................... 142
ANNEX G: Mission Participants From Development Partners ................................................................................ 145
ANNEX H: Final meeting schedule for 2013 Joint Supervision Mission ................................................................... 146
ANNEX I: LGA EPICOR IMPLEMENTATION: ACHIEVEMENTS & CHALLENGES – Snapshot Report ........................... 150
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1. EXECUTIVE SUMMARY
The 2nd Joint Supervision Mission of Phase IV of the PFMRP was conducted from 16 Sept to 1 Oct 2013
and the Mission Team consisted of Government of Tanzania officials, members of the Development
Partners PFM Group, and the PFM GoT and DPG Secretariats. PFMRP IV is the fourth phase of the
Government of Tanzania`s PFM reform agenda and runs from July 2012 to June 2017. This report provides
a comprehensive assessment of programme progress of the 12 months of implementation of PFMRPIV as
well as identifies key priorities for the following years. The report feeds also into the annual GBS review via
assessment of the PAF.
Brief Update on PFM Trends in Tanzania
Before outlining the progress on programme activities, a brief update on PFM trends in Tanzania is
provided. This is based on the findings of the PEFA 2013 and various other official documents. The key
highlights on PFM trends are provided below:
Overall, there has been significant improvement in PFM systems in Tanzania over the last 4-5
years.
Credibility of the budget, however, remains weak. While aggregate revenue out-turn performance of
GoT shows an improving trend, aggregate expenditure out-turn has tended to fluctuate. The
composition of expenditure out-turn presents a significant PFM weakness.
On planning and budgeting, Tanzania performs at an above average level. While significant
improvement has been made on orderliness and participation in the annual budget process
including a new budget cycle from 2013-14, there remain many areas of further improvement.
Tanzania has made significant progress on revenue management recording significant increase in
revenue mobilisation year after year, along with widening of the tax base. However, tax exemptions
have continued to increase significantly.
Several weaknesses persist in budget execution. High level of reallocations and lack of predictability
in fund flow distort the execution of the budget. Accumulation of expenditure arrears in a cash
constrained environment has also weakened internal controls. However, there has been significant
improvement on payroll control and quality of debt management.
Tanzania continues to show improvement in the functioning of its oversight institutions. The PEFA
notes significant improvement in effectiveness of internal audit. Oversight over parastatals has
improved in recent years and most PA&OBs report quarterly and annually to Treasury Registrar.
The NAO has continued to professionalise and improve its functioning. Quality of procurement has
also seen significant improvement with active oversight by PPRA.
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Findings from the Joint Supervision Mission
The joint assessment concluded that PFM reforms under PFMRPIV are making good progress. Some of the
milestones have already been achieved; a majority are on track, while a few of them have been delayed.
Performance across different KRAs varies. Activities related to Planning & Budgeting (KRA 2), Budget
Execution (KRA 3) & Budget Control and Oversight (KRA 4) show good progress, while those on Revenue
Management (KRA 1) and Change Management (KRA 5) show mixed progress.
Revenue Management (KRA 1)
The Tax Administration Act, which intends to establish a common tax collection procedure by TRA, is being
revised and will be resubmitted to Cabinet committee before seeking Parliament approval. The Draft VAT
Bill is being revised with support from IMF and after due process, the Bill would be sent to Cabinet, AG and
then submitted to Parliament. The Policy Analysis Division is undertaking a study on non-tax revenue with
the objective of integrating and harmonising non-tax revenue collection systems and an action plan to
follow-up on recommendations is expected to be in place by June 2014. For improving revenue forecasting,
better coordination between PAD and TRA is essential for agreeing a common approach.
On local government revenue, a study on revenue potential assessment for LGAs has been completed by
PMO-RALG. Terms of reference for training a cadre of trainers from RS and LGAs on revenue management
are being finalised. However, there is need to agree on the intermediate steps to be taken for establishment
of a revenue database for LGAs.
Planning & Budgeting (KRA 2)
A positive achievement in this area has been the successful transition to the new budget cycle (starting
FY2013/14). This is likely have a positive impact on timeliness and completeness of fund flows to service
delivery units at the local level.
The Budget Division continues to make good progress towards the introduction of Program Based
Budgeting (PBB) with an action plan in place. Currently, PBB tools are being used to capture information
and working sessions with 8 pilot Ministries. The PBB will be gradually rolled out to MDAs, regions and
LGAs and this is expected to be completed by September 2016. With regard to the effective utilisation of
planning and budgeting tools, there is a delay in reviewing the MTSPBM. However, progress is underway
with respect to preparation of annexes to budget book Vol. II concerning Executive Agencies and publication
is expected for part of the Public Entities by June 2014.
There is good progress on LGAs’ own source budget information. This was reflected substantially in the
2012-13 National Budget Guidelines. However, there is significant delay in the review of the LGAs budget
allocation formulas and the whole sequence of milestones linked to this activity is at risk.
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Increased budget transparency is a key process action in PAF 13. The target is likely to be met as three
budget books out of four (with the exception of Volume I) have been published on MoF website. For the first
time, end-of-year execution report is planned to be ready and published by Mid-November. Further, the
citizen’s budget report is under preparation.
A fundamental issue highlighted by the PEFA is the lack of budget credibility. In addition the PEFA also
notes the need to improve the quality and comprehensiveness of the budget documentation as well as
public access to key fiscal information. Currently the PFMRPIV only partially addresses these issues.
Accordingly, it was agreed during the supervision mission for two new milestones on budget credibility and a
new output focussing on quality and comprehensiveness of budget documentation and public access to key
fiscal information. At the same time, it must be mentioned that there are several non-technical factors that
impact on budget credibility and which are beyond the control of the MoF.
Budget Execution (KRA 3) Almost half (286) of the targeted 600 central government staff have been trained on cash management. However, the PEFA 2013 findings show that PFRMRP IV does not sufficiently address cash management issues, and the related issues of commitments entered outside of the financial management system, frequent reallocations between MDAs and the consequent build-up of arrears having to be paid at the expense of planned service delivery. In this regard, a new milestone proposed is that ACGEN presents a monthly report on payment arrears to the cash ceiling committee starting December 2013 with the intention of minimising arrears. The mission also suggests that a more robust and regular cash flow forecast analysis by the cash management unit, informing the cash ceiling committee remains necessary.
Although GoT has also enabled the closure of significant number of dormant bank accounts, demands from
certain development partners supporting projects (water - AfDB and DASIP – AfDB/WB), each LGA is now
required to open 2 more accounts in addition to the existing 6 bank accounts.
Good progress has been made on debt management. The President’s office has agreed to establish a centralized Debt Management Office (DMO) within MoF. With a technical support from the World Bank and the East African MEFMI, MOF has conducted a debt sustainability analysis (DSA), which covers both domestic and external debt. The external debt databases have been consolidated into a single debt database currently maintained in AccGEN office. MoF has also been working on the revision of the current Loans Act to incorporate provisions that will insure a greater control of public indebtedness growth, and limit fiscal risks stemming from contingent liabilities. Further, there is progress in the development of a debt management strategy draft which will inform the Public Debt Management policy.
The Five Year Road Map on the migration to International Public Sector Accounting Standards (IPSAS) accrual is in place and is being upgraded to be fully compliant with changing IPSAS guidelines. A key step for successful migration is the preparation of the fixed asset register on which Government Assets Management is making progress.
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Budget Control and Oversight (KRA 4)
The mission found that the performance of oversight agencies (IAGD, NAO, Parliamentary Committees, TR, PPRA and PPA) is generally improving. Steps to improve capacity are progressing through a combination of training, codification of new procedures and awareness rising, though in some cases have been delayed by factors beyond the control of individual agencies. Obstacles relate to the pace at which new legislation and regulations are being approved, and severe staffing constraints in some cases. Lack of effective follow up to audit findings remains an important area of underperformance. Steps were agreed during the mission to strengthen measures to ensure follow up by MDAs and LGAs. Further, the NAO is working on a monitoring mechanism as well as establishing a database as regards outstanding audit matters.
Change Management (KRA 5)
KRA 5 includes a diverse group of outputs related to the management of change within PFMRP IV, the coordination and management of the programme, ICT integration, communication, LGA fund flow architecture and other matters that have cross cutting implications.
The study on intergovernmental fund transfers progress has been completed and submitted to Government; however there is significant delay in the ICT mapping study. On other fronts, initial steps have been taken by PMO-RALG for IT connectivity with procurement of IT infrastructure for the central server in Dodoma to accommodate the 35 new LGAs. However, there was no fund available for the local area network, connectivity, hardware equipment. Substantial achievements have been made through the upgrading of EPICOR software, with 6 modules out of 10 in operation. Its extension to all LGAs is likely to have a positive impact on financial planning and reporting, as monitored centrally by PMO RALG.
PFM in the Context of GBS
With regard to the GBS PAF 2013, two of the KPAs (on budget transparency and intergovernmental fund transfer action plan) are likely to be achieved; 1 KPA (ICT integration action plan) will most likely not be achieved and 1 KPA (legislation towards enhanced tax revenue mobilization) will not be rated. Out of the 4 Outcome Indicators, only 1 (outstanding audit matters) will not be rated. However, efforts are being made to make progress towards these key elements.
It is important to highlight that some of the temporal blockages in the PFM process are linked to pending legislative procedures. With the parliament due to discuss the draft Constitutional Review in October/November, various legislative pieces/ bills (TR Act, VAT Act, Loans & Guarantees, Tax Administration, Public Finance Act, Local Government Finance Act) are unlikely to be tabled until February 2014 at the earliest.
In conclusion, the joint assessment concluded that PFM reforms under PFMRPIV are making good progress. Some of the milestones have already been achieved; a majority are on track, while a few of them have been delayed. Performance across different KRAs varies. Activities related to Planning & Budgeting (KRA 2), Budget Execution (KRA 3) & Budget Control and Oversight (KRA 4) show good progress, while those on Revenue Management (KRA 1) and Change Management (KRA 5) show mixed progress.
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2. METHODOLOGY
The Supervision Mission Team consisted of Government of Tanzania officials, members of the Development
Partners PFM Group, and the PFM GoT and DPG Secretariats. It was agreed that this Supervision Mission
should not take the form of a performance audit but rather it should be used as an opportunity to share
knowledge, jointly assess progress, identify challenges at an early stage, discuss and chart the way forward.
Objectives of the Supervision Mission
The 2nd Joint Supervision Mission of Phase IV of the PFMRP was successfully conducted from 16 Sept to 1
Oct 2013. The objectives of the mission were to:
1) To assess and agree on the overall progress and results from the implementation of the action plans of PFMRP IV FY 2012/13. This will include a particular focus on progress since the last Supervision Mission in September 2012.
2) To assess and agree on progress in the implementation of PFMRP IV so far against its agreed milestone in M & E framework. This will be in view of the draft annual report FY 2012/13 ending June 2013.
3) To propose possible adjustments to the M&E framework and the Operations Manual in order to keep these documents current and relevant. This will specifically address any adjustments in relation to the PEFA recommendation action plan. Further, as discussed at the JSC held on 9 th July, 2013 a list of milestones to be reviewed will be discussed and finalised in the TWGs in this period.
4) To assess and jointly agree progress against the General Budget Support Performance Assessment Framework (GBS PAF) for underlying principles (UP), Key Policy Actions (KPAs) and outcome indicators(OI) that are PFM related (see PAF 2013 at Annex A).
5) To identify issues, challenges and opportunities that needs to be considered or addressed in the future in order to enhance and improve the PFM outcomes under each KRA.
The documents used as guidance for the mission were the PFMRP IV Strategy, its Monitoring and
Evaluation Framework and the Operations Manual, as well the Annual progress report and PAF 2013. The
mission took the opportunity of the recently completed PEFA 2013 exercise on central government and the
Bagamoyo PEFA follow-up retreat outcomes to improve the PFMRP M&E framework. Other documents
such as the Division action plans, recent CAG reports, GBS evaluation report and PAF progress reports
were also used to inform discussions during the mission.
The mission activities were structured around the 5 Key Result Areas (KRAs) that are articulated in the
Phase IV Strategy and the Monitoring and Evaluation Framework.
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The KRAs are as follows:
KRA 1: Revenue Management
KRA 2: Budget and Planning
KRA 3: Budget execution, Transparency and Accountability
KRA 4: Budget control and Oversight
KRA 5: Change management, Program Monitoring and Communication
The primary methodology used during the mission was the Technical Working Groups (TWG) consisting of
the key PFMRP Component Managers and DP representatives where extensive discussions were
undertaken and initial feedback from these meetings has been very positive. In most cases, the discussions
provided valuable opportunities for learning and information sharing that was specifically directed at
improving the shared understanding on the status of key PFM reform activities together with any challenges
and constraints that are impacting performance.
Apart from the direct participating departments and agencies, the mission also held discussions with other
key stakeholders such as BoT, TRA, 3 ministries (MoHSW, MoE and MEM), who are not direct beneficiaries
of the programme but are key implementers in the reform process. These meetings provided the opportunity
for discussions that focused on the impact of reforms, status of reform implementation and challenges that
spending and income generating entities face given the reform environment.
Given the limited time, it was not possible to visit the RAS and/or LGAs and it was decided that a dedicated
and extensive visit to selected RAS and LGAs will be undertaken before end 2014.
A feature that draw extensive attention from PFM practitioners and PFM reform supporters was a
presentation by the Accountant General’s Division on the GoT’s migration roadmap to IPSAS accrual which
was attended by various DPs, MoF divisions and other agencies. The presentation provided an opportunity
for stakeholders to gain some useful insights into the GoT’s plans towards a consolidated accrual statement.
Some of the key milestones in this roadmap form an important cornerstone in the PFMRP M&E framework.
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3. OVERVIEW OF PFM TRENDS IN MAINLAND TANZANIA
Drawing on the findings from the PEFA 2013 report and other official documents, this section provides a
brief overview of the trends in PFM reform in Tanzania. An attempt has also been made to provide an
understanding of how PFMRPIV links across different PFM reform areas. For ease of understanding, this
section has been segregated into the following five critical PFM dimensions, under which a brief update of
reform highlighted by critical PFM indicators has been provided along with a short summary of PFMRPIV
activities.
1. Overall Assessment of PFM Reform
2. Budget Credibility
3. Planning & Budgeting
4. Revenue Management
5. Budget Execution
6. External Scrutiny and Oversight
3.1. Overall Assessment of PFM Reform
The PEFA Report 2013 indicates significant improvement in PFM systems since 2009. Out of 31 PIs, 12 ratings improved, 5 are in process of improving, 9 PIs have not changed and 2 have fallen. PFM aspects that have improved include effectiveness of internal audit, annual budget process and legislative scrutiny, effectiveness of payroll controls, procurement oversight and external audit. On the other hand, there remain significant PFM weaknesses in cash flow management and payment arrears, internal controls, fiscal risk posed by PA&OBs, budget documentation and compliance with audit recommendations.
3.2. Overall Budget Credibility
A key PFM outcome relates to overall budget credibility, which not only reflects the quality of planning and budgeting but also quality of budget execution. It requires actual budgetary releases to be similar to voted budgets and requires appropriate fiscal discipline to be in place. The table below examines three key indicators on budget credibility.
Sl. No.
Performance Indicator 2009-10 2010-11 2011-12
1. Aggregate expenditure out-turn compared to original approved budget
98% 91.2% 94.1%
2. Composition of expenditure out-turn compared to original approved budget
16% 8% 18.8%
3. Aggregate revenue out-turn compared to original approved budget
89% 93% 103%
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Overall, the budget credibility is weak. While aggregate revenue out-turn performance of GoT shows an improving trend, aggregate expenditure out-turn has tended to fluctuate. The composition of expenditure out-turn presents a significant PFM weakness, which GoT has failed to address. As noted by the PEFA report, there are multiple PFM weaknesses which contribute towards the lack of budget credibility. These include weaknesses budget preparation system (over-budgeting in the development budget, under-budgeting in some areas of recurrent expenditure) and the budget execution system (cash rationing due to resource uncertainty, lack of commitment controls). As a result expenditure arrears have been accumulating, which are paid out of budgets in following years at the expense of planned service delivery. PFMRPIV, therefore, deems it appropriate to engage in multiple areas in order to enhance the credibility of the budget. Although the programme did address many of the areas identified in the PEFA report 2013, the joint supervision mission has also identified new/revised milestones to address existing gaps in programme delivery. At the same time, it must be mentioned that there are several non-technical factors that impinge on budget credibility, and which are beyond the control of the Ministry of Finance.
3.3. Planning & Budgeting
Planning and budgeting is a critical aspect of the budget cycle. A streamlined process can enable rational and realistic budgeting with a medium term horizon. It is equally important for the budget documentation to be comprehensive and to be available in the public domain.
Sl. No.
Performance Indicator PEFA Rating
1. Orderliness and participation in the annual budget process B+
2. Medium term perspective in budgeting C
3. Quality & comprehensiveness of budget information B
4. Public access to key fiscal information B
On planning and budgeting, Tanzania performs at an above average level. Although there has been significant improvement, as highlighted in the PEFA, particularly on orderliness and participation in the annual budget process resulting in a new budget cycle from 2013-14, there remain many areas of further improvement. With the current system of cash rationing, multi-year budget forecasts remain a challenge even though the process is duly followed by MDAs and LGAs. There is significant scope for improvement in budget documentation – currently 5 out of 9 PEFA requirements are met. In addition, public access to key fiscal information, Tanzania scored 47 out of 100 on the open budget index in 2012, up from 35 in 2008. PFMRPIV supports a wide range of activities related to planning and budgeting including support for programme based budgeting, effective utilisation of planning and budgeting tools, MTEF preparation by MDAs and LGAs and budget transparency. In addition, several new milestones have been agreed upon to improve planning and budgeting, particularly aimed at improved budget documentation and budget transparency.
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3.4. Revenue Management
Revenue Management in Tanzania assumes critical importance given that it is still highly dependent on foreign aid for development spending. Better revenue realisation can go a long way in making Tanzania less aid dependent as well as make available more funds for development expenditure.
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Performance Indicator 2009-10 2010-11 2011-12 2012-13
1. Revenue as a proportion of GDP 14.6% 15.2% 15.7% 16%
2. No. of Registered Taxpayers - TIN registered - VAT registered
617,877 13,253
845,737 16,848
1,035,281
17,860
1,611,520
21,362
3. Tax exemptions as a proportion of total revenue collection
15% 19% 27% -
On this account, Tanzania has made significant progress in recent years. Between 2001 and 2011/12, revenue receipts grew eight times at a compound average growth rate of 21%; as a result the revenue yield in 2012-13 stood at 16% compared to 14.6% in 2009-10. At the same time the cost of revenue collection has declined from 3.8% in 2008-09 to 2.1% in 2012-13. The tax base has also increased by more than 150% for TIN-registered tax payers and 60% for VAT-registered tax payers between 2009-10 and 2012-13. However, tax exemptions have continued to increase significantly. From 15% of total revenue collection in 2009-10, it increased to 27% in 2011-12. PFMRPIV supports GoT, particularly Policy Division and PMO-RALG, in improving revenue forecasting and in revenue mobilisation particularly non-tax revenue and local revenue. Given that a separate DP basket fund provides support to TRA on a wide range of revenue management reforms, the scope of work under PFMRPIV has been kept limited in order to avoid duplication. It is important to highlight that revenue management is essential for longer term sustainability of the country’s financial situation and ensuring adequate fiscal space for financing development activities in the future.
3.5. Budget Execution & Control
Budget execution has generally been a weak area in the PFM system in Tanzania. Given the cash-constrained environment, predictability of fund flows has been weak and this has a cascading effect on the entire expenditure cycle.
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Performance Indicator 2009-10 2010-11 2011-12 2012-13
1. Reallocation warrants as a proportion of total government budget
2. Stock of expenditure arrears as proportion of expenditure - 5.6% 3.7% 8.5%*
3. Predictability in the availability of funds for commitment of expenditures
C
4. Internal Controls - Payroll - Expenditure
B
D+
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5. Compliance with Procurement Controls (Avg) - MDAs - LGAs
- -
57% 50%
65% 56%
77% 67%
6. Debt to GDP ratio 35% 37% 40% 44%
7. Quality of Debt Recording and Management B
8. Quality and timeliness of budget execution reports - In year reporting - Annual financial statements
C+ B+
*at end of March 2013
From the table above, it is evident that while GoT has made good progress in some areas, significant weaknesses remain. High level of reallocations and lack of predictability in fund flow tends to distort the execution of the budget. With the accumulation of expenditure arrears and application of cash ceilings, some spending units often resort to commitments outside IFMIS, thereby weakening internal controls. The report of the CAG for 2011/12 confirms that corrective measures in response to audit findings are not adequately taken to circumscribe non-compliance. At the same time, it is also evident that GoT has made good progress on payroll control. Since November 2011, GoT has enabled complete integration and reconciliation between personnel records and payroll through the HCMIS and Payroll cleansing has led to a large decrease in the number of ghosts. Quality of procurement has also seen significant improvement with active oversight by PPRA with improved compliance by MDAs and LGAs, although there remain key issues related to contract management and transparency. The quality of debt management has also improved. Based on the updated DSA, Tanzania’s debt indicators are expected to remain below indicative, country-specific thresholds. Debt recording and monitoring has improved with the consolidation of the external debt data base maintained by Bank of Tanzania (BoT) through CS-DRMS into the external debt data base maintained in ACGEN. Monthly and quarterly debt reports are prepared for management purposes. A comprehensive Annual Public Debt Bulletin and a Quarterly Public Debt Newsletter are also published. However, a key area of concern relates to the fiscal risk of PA&OBs over which the government has limited oversight and control. Quality and timeliness of budget execution reports (quarterly and annual) have improved, particularly with the advent of IFMIS, although the data quality in quarterly budget execution reports can be improved further. Budget execution is a key area of intervention under PFMRPIV. The programme supports improvement in public procurement, cash management, debt management and financial reporting.
3.6. External Scrutiny and Oversight
Tanzania has established and continues to strengthen several independent oversight institutions for
strengthening external scrutiny and oversight (such as NAO and PPRA).
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Performance Indicator 2009-10
1. Effectiveness of Internal Audit B
2. Legal & Regulatory Framework for Public Procurement B
3. Oversight over Parastatals C
4. Scope and Quality of External Audit B
5. Follow-up on External Audit C
6. Legislative scrutiny of external audit reports D+
The PEFA notes significant improvement in effectiveness of internal audit. Reports prepared by IAUs are issued quarterly for all entities and distributed to the Audit Committees, MDA management, the Permanent Secretary of MoF and to the CAG. Management response has improved considerably and corrective measures are increasingly being taken. The current legal and regulatory framework for public procurement in Tanzania meets four of the six PEFA benchmarks. However, once the regulations under the 2011 PPA have been gazetted, it is likely to meet all requirements. Oversight over parastatals has improved in recent years and most PA&OBs report quarterly and annually to Treasury Registrar and the CAG audits them. The TR prepares annual reports on the financial situation of PA&OBs although the non-submission of reports by 30% of PA&OBs reduces the scope of its reports. The legal framework was revised in 2010 to reinforce the powers of TR but it does not require TR to prepare a consolidated budget and annual financial statements for all PA&OBs, to report on performance and to prepare an annual consolidated statement of fiscal risks. The proposed new TR Act is expected to further enhance the powers of the TR and streamline governance requirements of PA&OBs.
The NAO has continued to professionalise and improve its functioning. It achieved AFROSAI level 3 in 2012 - the second supreme audit institution to do so in Africa. Audit coverage of expenditures of all government MDAs, public entities and corporations with majority government interest increased to 100% in 2011/12 from 88% in 2008/09. Annual audit reports of CAG are submitted to the National Assembly 9 months after the end of the financial year in accordance with the Public Finance Act 2008. The follow-up on audit recommendations, however, need to be strengthened to ensure effective audit compliance. Legislative scrutiny of the audit reports is rated low primarily becasue it takes more than 12 months for PAC to review CAG audit reports and issue its report (recommendations) to the National Assembly for consideration and adoption. With the amendment to the Public Audit Act, this is likely to cause further delay, although the Parliamentary Oversight Committees can examine the CAG report and the management response from PMG at the same time.
PFMRPIV is strongly engaged across all the above mentioned areas and provides dedicated support to these oversight institutions.
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4. KEY RESULTS AREAS – STATUS REPORT
The following section provides an overview of the results of the Technical Working Group discussions within
each KRA. As highlighted in the methodology, the M&E framework was the guiding document with the
discussions on the milestones and outputs focussed on progress of implementation as at September 2013.
For relevant TWGs, progress on meeting targets around the PFM related PAF 2013 indicators was
discussed (see section 5). The TWG also outlined the challenges and opportunities for further reform or
redirection in reform.
The figure below attempts to give an overview status of implementation of milestones across the KRAs
covering varied outputs. The mission has noted a number of revisions to current milestones, deletion of
redundant/unclear milestones and addition of milestones given the need to accommodate a number of
PEFA underlying recommendations. As such, the year by year comparison of overview status of the M&E is
not practical for noting progress.
The detailed findings have been captured in the M&E framework which is attached as Annex A.
Achieved 17%
On track 53%
Pending 6%
Delayed 12%
At risk 2%
New 10%
Summary of status of milestones as at Sept 2013
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4.1. KRA 1 - Revenue Management
Strengthened systems, processes and procedures for improving the operational capability of the revenue collection by June 2017 Output 1.1 Improved quality of forecasting of fiscal aggregates for three years on a rolling basis
Output 1.2 The Government improves efficiency in domestic revenue mobilization both at the policy and the administration levels by updating legal instruments towards international best practices
Output 1.3 Strengthened capacity of local government authorities to collect revenue by 2015
Output 1.4 Increase of donor funding that flows through the exchequer system by 2016
Revenue forecasting is vested with Policy Analysis Division and TRA. The PEFA reaffirms the need to improve revenue forecasts at disaggregated levels. However, there are different views on where the problems lie with regard to revenue forecasting. PAD pointed out the need to examine model per se and address their capacity constraints while TRA emphasised on the need for better disaggregated data. Better coordination between PAD and TRA is essential for agreeing a common approach to improve revenue forecasts. The Tax Administration Act, which intends to establish a common tax collection procedure by TRA, was submitted to the Cabinet and Attorney General for verification in June 2013. The Attorney General requested that the Legal department in MoF review certain provisions. The revised draft will be resubmitted to Cabinet committee before proceeding to parliament. With the parliamentary due to discuss the draft Constitutional Review in October/November, the bill is unlikely to be tabled until February 2014 at the earliest. The Draft VAT Bill is being revised with support from IMF. It is expected that, after due process, the Bill would be sent to Cabinet, AG and then submitted to Parliament. The Mission identified a need for greater clarity of implications of the PER tax exemptions study for the new VAT Act under revision. As such, the mission strongly encourages this so that the new VAT Act reflects the changes suggested by the tax exemptions report which are supported by GoT. The Policy Analysis Division is undertaking a study on non-tax revenue with the objective of integrating and harmonising non-tax revenue collection systems. This is expected to be finalised by November 2013 and an action plan to follow-up on recommendations is expected to be in place by June 2014.
The PEFA suggests that use of country PFM systems by donors has improved. However, there is scope
for further improvement. Towards this end, the new national “Development Cooperation Framework” (DCF)
(formerly JAST) is in the final stages of development with subsequent national consultations to follow; a final
Cabinet endorsed DCF is expected to be put into operation in March 2014. New guidelines for the Aid
Management Platform (AMP) are under development. The upgraded version of AMP is expected to
significantly improve aid data quality and thereby planning and budgeting processes facilitated by MoF and
MDAs.
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On local government revenue, a study on revenue potential assessment for LGAs has been completed by
PMO-RALG and the draft report will be shared with stakeholders in Mid-October. Terms of reference for
training of RS and LGA staff on revenue management is being finalised. This will be done in ToT mode and
also help develop training modules. This is now envisaged to be completed by June 2014, after which
training of LGA staff will be undertaken by trained trainers. There is need to agree on the intermediate steps
to be taken for establishment of a revenue database.
4.2. KRA 2 - Budgeting and planning
Strengthened capacity of planning and budget management, including results and program based budgeting, within MOF, MDAs and LGAs by June 2017.
Output 2.1 Strengthened capacity of MDAs, RSs and LGAs in implementing program based budgeting by June 2016.
Output 2.2 Increased effective utilization of Planning and budgeting tools by 2016
Output 2.3 Strengthened capacity of LGAs for MTEF preparation by 2015
A positive achievement in this area has been the successful transition to the new budget cycle (starting
FY2013/14) with the Parliament passing the Finance and Appropriation Acts in time allowing for the
implementation of the Budget FY2013/14 to start on 1 July 2013, much earlier than in previous years.
The Budget Division in MoF continues to make good progress towards the introduction of Program Based
Budgeting (PBB) with an action plan in place that will include a Policy Paper in order for the Cabinet to
formally authorise the use of PBB. In the meantime, the PBB tools (template, indicators, etc) are being used
to capture information and working sessions with 8 pilot Ministries (Ministries of Finance, Water, Works,
Transports, Education, Health, Community Development and Agriculture) are in progress. Following the pilot
phase, the PBB will be gradually rolled out to MDAs, regions and LGAs and this is expected to be completed
by September 2016. Concerning LGAs, the compatibility of PBB with allocations based on formulae needs
to be looked into.
With regard to the effective utilisation of planning and budgeting tools, there is a delay in reviewing the
MTSPBM. The review, which implies collaboration between PO-PC and Budget Division, is expected this
financial year. Also, progress is underway with respect to preparation of annexes to budget book Vol. II
concerning Executive Agencies. Publication is foreseen for some of the Public Entities by June 2014.
A fundamental issue highlighted by the PEFA is the lack of budget credibility. In addition, the PEFA also notes the need to improve the quality and comprehensiveness of the budget documentation as well as public access to key fiscal information. Currently the PFMRPIV only partially addresses these issues.
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However, the existing weaknesses have been discussed with the Budget Commissioner and two new milestones have been agreed on budget credibility under Output 2.2 as below:
1. Budget reallocation warrants published by September every year. 2. Government approves actions for improving budget credibility based on a review of
reallocation warrants in the past four years - by June 2014
Although these will contribute to improving budget credibility, there are many other contributory factors beyond the control of the Ministry of Finance. A new output has also been agreed focussing on quality and comprehensiveness of budget documentation as well as public access to key fiscal information (shifted from KRA 5.4). Three new additional milestones have been agreed as listed below:
1. Public Access to key fiscal information: Timely publication of key fiscal information as listed
below:
a. Budget guidelines published by December every year b. Executive budget proposal (Vol. I to IV) as submitted to Parliament published by June
every year c. Approved budget (all volumes) published by September every year d. Quarterly budget execution report published within a month after end of quarter. e. Year end budget execution report published by October every year f. Citizen’s budget published by November every year
2. Action plan for improving quality and comprehensiveness of budget documentation based
on PEFA assessment developed – by December 2013 3. Changes in quality and comprehensiveness of budget documentation reflected in 2014-15
budget documentation
The review of the Public Finance Act is on-going but this is likely to be delayed in the context of the ongoing
Constitutional Review.
There is good progress on LGAs’ own source budget information and this was reflected substantially in the
2012-13 National Budget Guidelines.
There is significant delay in the review of the LGAs budget allocation formulas and the whole sequence of
milestones linked to this activity is at risk. It was agreed that implementation steps should be fast-tracked
and the review completed by Jan 2014 to ensure that revised allocation formulae are applied in budget
preparation during 2014-15 for the FY 2015-16 budget. It was further agreed that the analytical review
should include proposals for monitoring deviations from formula based allocations and look into the impact
of the transition to PBB on the allocation of LGAs resources.
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4.3. KRA 3 - Budget Execution, Transparency and Accountability
Improved utilization of public resources in a more effective, efficient and transparent manner by June 2017
Output 3.1 Strengthened public sector procurement by June 2015
Output 3.2 Strengthened capacity of MDAs, RSs and LGAs in Cash management by 2015
Output 3.3 Strengthened public debt management capacity by 2015
Output 3.4 Improved integrity and content of government financial statements and the migration from IPSAS cash to IPSAS accrual accounting for all government accounts is progressing in accordance with plans.
Output 3.5 Improved accountability in management of Government Assets for supporting migration to IPSAS Accrual
On public sector procurement, the gazetting of the PPA 2011 has been delayed due to the finalisation of
the new Procurement regulations which are currently waiting endorsement by AG and subsequent approval
by Minister of Finance. In parallel, the action plan of implementation of the Public Procurement Act will be
jointly prepared PPD and PPRA. This is need for an MOU which clearly lays out on the division of labour.
PPD is also working on a national procurement policy, a draft of which has been developed. The national
procurement policy will explain the PPA and covers central and local government.
There is progress made on human resources management with HR database of more than a 1000
procurement staff recorded and the consultancy for the TNA is still under way for MDA and LGAs. This
database is currently been verified and updated. The proposed PMU structure for the public sector has
been developed and discussed with head of procurement units after which it will be forwarded to the Ministry
and POPSM for approval.
Turning to cash management, almost half (286) of the targeted 600 central government staff have been trained on cash management using standardised materials by the end of last financial year. The training is now carried out in-house, based on East-AfriTAC methodology.
There has been a step backwards with regards to the rationalisation of bank accounts at LGA level with
each LGA is now required to open 2 more accounts s (water - AfDB and DASIP – AfDB/WB) in addition to
the existing 6 bank accounts following requests from development partners.
The PEFA 2013 findings show that PFRMRP IV does not sufficiently address cash management issues.
MDAs tend to accumulate arrears because of insufficient budget allocation and cash rationing that drive
them to make commitments outside EPICOR. The PEFA also highlights the need for stronger monitoring of
arrears. In this regard, a new milestone proposed is that ACGEN presents a monthly report on payment
arrears to the cash ceiling committee starting December 2013 with the intention of minimising arrears.
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With regard to public debt management, the President’s office has agreed to establish a centralized Debt
Management Office (DMO) within MoF. Before the DMO can be operational, a formal approval is awaited
which will spell out a detailed staffing plan.
With a technical support from the World Bank and the East African MEFMI, MOF has conducted a debt
sustainability analysis (DSA), which covers both domestic and external debt. The DSA output is expected to
serve as key inputs for the country’s new Public Debt Management (PDM) Strategy that will guide the
government borrowing policy going forward. It is expected to be finalized by the end of October 2013. .
On public debt legislation, the MoF has been working on the revision of the current Loans Act to incorporate
provisions that will insure a greater control of public indebtedness growth, and limit fiscal risks stemming
from contingent liabilities. The new Loan and Guaranteed Act, whose draft the MOF expects to finalize and
submit to Cabinet by June 2014, will include provisions for a yearly ceiling on the amount of direct public
borrowing and a limit on the amount of loan guarantees GOT can grant to other public entities such as
Public authorities and other bodies (PA&OBs). It will also contain provisions for a greater control by MOF of
those projects financed under the Public Private Partnership framework that may have fiscal implications for
the GOT.
In light of 2013 PEFA assessment report, one milestone will be revised to capture the need to monitor
contingent liabilities and account for the risk stemming from guarantees granted by GOT to PA&OBs and
from PPP financed projects. An additional milestone is proposed to ensure quarterly reporting and
publication of public debt.
The Five year road map on the migration from IPSAS Cash to IPSAS accrual is in place and is being
upgraded to be fully compliant with changing IPSAS guidelines. A key step for successful migration is the
preparation of the fixed asset register on which Government Assets Management is making progress.
Currently, valuation work has been partially been completed for 34 MDAs.
Awareness and capacity building on IPSAS accrual is continues with 320 staff (MDAs, Public Accounts
Committee (PAC) members and Tanzanian embassies) have been trained.
Further, an asset management policy is being developed to support drawing of laws, regulations and
directives pertaining to management of public assets. It will covers all asset categories (31 classes)
according to IPSAS and IFRS and the final draft is expected in Feb 2014.
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4.4. KRA 4 - Budget Control and Oversight
Improved adherence and enforcing of MDAs and LGAs to financial internal controls, rules, laws, regulations and audit recommendations by June 2017
Output 4.1 Increased coverage and quality of the internal audit functions
Output 4.2 Strengthened External audit functions
Output 4.3 Improved transparency on audit reports (central, local and Parastatal levels) to strengthen scrutiny and accountability.
Output 4.4 Improved oversight of Parastatals’ performance
Output 4.5 Strengthened capacity of oversight functions of Parliamentary Accounts Committee in Tanzania Mainland
OUTPUT 4.6 Improved oversight of public sector procurement
The Internal Auditor General`s operational plan (2013-17) was approved in March 2013 and is being implemented satisfactorily. Preparation of necessary manuals and guidelines is on track. Stakeholder comments have been incorporated into the internal audit manual will be finalised in October, the quality assurance and improvement manual has been completed and disseminated to all internal audit units and preparation of Audit Committee guidelines is on-going. Steps to establish effective internal audit units and committees are progressing. Awareness workshop to
340 internal audit stakeholders (mayors, council chairpersons, audit committee chairpersons, heads of
internal audit units) has been conducted. However training for 550 internal auditors on risk based audit and
training on technical audits has been deferred. Key data on Audit Committees has been collected, ready for
incorporation into a database to provide a baseline for monitoring progress.
The PEFA report has reaffirmed difficulties with follow-up to audit findings by MDAs and LGAs. The review
mission agreed new milestones to enable IAGD to monitor and follow-up on CAG recommendations,
including quarterly reporting by MDAs and LGAs on the status of corrective measures and annual review of
compliance.
With regard to External Audit, significant progress has been achieved. A highlight has been NAO`s
achievement of AFROSAI level 3 (late 2012), the second supreme audit institution to do so in Africa. NAO
was also conferred best audit award in East Africa region.
Alignment of audit methodology with ISSAIs guidelines through adoption of the regulatory audit manual
(RAM) is now complete. With support from PFMRP NAO has carried out extensive staff training in areas
such as risk based auditing and IT audit. Twelve NAO offices are now connected with WAN fibre optics. By
the end of this financial year it is expected that four additional offices will be connected to WAN and most
NAO staff will have moved from the auditee premises (GoT offices) to NAO premises. Progress on the
establishment of a database on audit recommendations has been slow, although manual consolidation of
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past audit queries and recommendations from resident auditors is on-going. NAO is looking for alternative
options for developing appropriate software for tracking outstanding audit queries.
To foster greater transparency and to make its reports user-friendly NAO produced and disseminated its first
Citizen’s Audit Report (2011-12) in July 2013.
On the legislative front, it is yet to be seen how the February 2013 amendment to the Public Audit Act will be
applied in practice. The Paymaster General`s response to the 2011/12 CAG report has been given to
Parliament though discussion has yet to take place. The amendment causes some delay since it requires
the Paymaster General response to be provided concurrently with the CAG report. It may also allow for
more substantive discussions in the oversight Parliamentary Committees (PACs).
PFMRPIV has provided on-going capacity building support to the Public Accounts Committee (PAC),
Local Government Accounts Committee (LAAC) and Parastatals Organisations Accounts Committee
(POAC) – prior to its dissolution - through the NAO over the period under review. Members have been
received training in interrogation skills, CAG reporting and financial statements, and support for regular
project monitoring visits.
In February 2013 the POAC was dissolved and its functions integrated into the PAC. A sub-group dealing
with parastatals has been created however the number of MPs on the PAC remains unchanged and it is
unclear how effective oversight of parastatals will be ensured. The mission was not able to meet with the
Parliamentary Committees to review the configuration of future support though PFMRPIV. It is
recommended that plans are revitalised to hold a workshop with the Parliamentary Committees to obtain a
clearer understanding where support should fit within the broader context and draw up a medium term plan.
Participation should include the PAC chairs, Clerks, Parliament Office, NAOT, MoF and DPs.
Moving on to Performance of Parastatals & Treasury Registrar, this segment is a consolidated report on
milestones linked to the office of the Treasury Registrar (under KRA 1 & KRA 4)1. The key issue pertaining
to parastatals is finalisation of the new TR bill which remains under review and is expected to be enacted by
June 2014. The Act will enhance TR’s mandate for regulation and oversight of parastatals through
performance contracts, harmonisation of closure of books of accounts, and monitoring and reporting. In view
of delays, performance contracts with 10 Parastatals are now expected to be partially done by June 2014
and completed by June 2015.
The TR has identified areas where the TR Act conflicts with other parastatal Acts and updated the parastatal
database (TRIMS), providing a basis for follow-up plans to revise 150 Parastatal’s Acts. Staff have been
relocated to a new office in anticipation of their new mandate and a training programme developed based a
training needs assessment carried out by the TR.
1 It has been decided that the outputs pertaining to parastatals will be covered under KRA 4
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On procurement oversight2, the annual review of procurement compliance is on track and the report is
expected to be published in October 2013. The overall trend appears positive across all assessment
categories. It was agreed during the mission that the milestone relating to numbers of PEs reached (3.1.9) in
the review process should be redefined to reflect an annual rate of completion of one-third of all enterprises
(current total: 434).
The provisions of the new Public Procurement Act (PPA 2011) have been disseminated to procuring
entities. Completion of implementation and monitoring tools is awaiting approval of new regulations and is
deferred to March 2014. Nevertheless the majority of draft regulations are ready and providing the basis for
preparatory work. For example around 299 PEs are now registered and using PMIS, with plans in place to
increase this to 434 PEs by end of 2014. Training on the use of the system has begun and is due to be
completed in December. Alignment of procurement plans with institutional strategic plans by MDAs and
LGAs is now mandatory.
An on-going concern is that procurement entities are not always receiving quotes from suppliers which
reflect market rates. To enhance Value for Money for commonly used items PPRA and GPSA are
undertaking annual average price surveys of goods and services and GPSA is undergoing a procurement
compliance audit. Competitive pricing will also be supported by e-procurement for which detailed system
requirements are expected to be completed this financial year.
In terms of operational capacity, plans to establish five zonal offices are at an advanced stage. However
PPRA continues to be constrained by inadequate staffing (approximately 2/3 of posts unfilled) for reasons
which lie beyond its control. Requests for additional staffing are under discussion with POPSM.
4.5. KRA 5 - Change Management, Program Management and Communication
Improved management practices with increased accountability and leadership to better manage performance of PFMRP by June 2017
Output 5.1 Coordinate Integration, interfacing and rationalization of Government financial systems.
Output 5.2 Utilization of EPICOR modules Increased from seven to ten
Output 5.3 All software development and module upgrades are coordinated with the overarching plans for ICT integration.
Output 5.4 Improved communication and public access to key fiscal information to stakeholders
Output 5.5 Coordination and Standardization of PFM Training Achieved.
Output 5.6 PFMRP component Managers are being guided by detailed multi-year operating plans.
Output 5.7 PFM activities are effectively planned and implemented
2 It has been decided that output related to procurement oversight (under PPRA) is moved from KRA 3 to KRA 4
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Output 5.8 Effective coordination of activities and support provided to the program implementers
Output 5.9 PFM Program oversight and review is being guided by clearly defined Milestones derived from an agreed M&E framework,
Output 5.10 All major PFM reforms have been coordinated with and informed by the relevant government and DP stakeholder groups
Output 5.11 PFMRP implemented efficiently and effectively through result based management approach.
Output 5.12 National systems and processes for intergovernmental transfers to LGAs Streamlined and rationalized
Output 5.13 Strengthened Public Financial Management Reforms in Zanzibar by 2016
The overall objective of KRA 5 is to improve management practices with increased accountability and
leadership to better manage performance of PFMRP. KRA 5 includes a relatively diverse group of 13
outputs related to the management of change within PFMRP IV, the coordination and management of the
programme, ICT integration, communication, LGA fund flow architecture and other matters that have cross
cutting implications.
The Planning Division (PD) is responsible for several outputs under this KRA, progress on which is mixed.
The study on intergovernmental fund transfers progress has been completed and submitted to Government
and a road map will be developed for implementation of recommendations. The secretariat has been very
effective in coordinating and facilitating dialogue. However, there was significant delay in the recruitment of
secretariat staff and some reorganisation is under consideration.
There is significant delay in the completion of ICT mapping study. The draft mapping study is yet to be
shared with stakeholders for necessary input and/or comments. A detailed schedule has been agreed during
the mission to make sure stakeholder consultations take place in October and a road map is developed.
Given that the e-Government Agency has plans to undertake a government-wide ICT integration, it is
important that the ICT mapping study is accommodated within the overall e-Governance strategy.
Initial steps have been taken by PMO-RALG for IT connectivity with procurement (expansion) of IT
infrastructure for the central server in Dodoma to accommodate the 35 new LGAs. However, funds for the
local area network, connectivity, hardware equipment and training on LGAs ground were not available to
PMO-RALG.
Terms of Reference are under preparation for developing an interface between MoF IFMS (Epicor) and
PMORALG IFMS (Epicor) in order to capture approved budget and transfers to RSs and LGAs. This critical
activity will enable real-time information flow on fund transfers to LGAs.
Substantial achievements have been made through the upgrading of EPICOR software, with 6 modules out
of 10 in operation. Its extension to all LGAs is likely to have a positive impact on financial planning and
reporting, as monitored centrally by PMO RALG.
Progress has been made in regard to access to key fiscal information through publication of budget
documents on the MoF website. Steps have been agreed to further enhance access as described under
KRA 2. However, the MoF Communication Unit will continue to extend support support/work closely with the
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Budget Division to publish the relevant budget documents. A three-year MoF communication strategy has
been developed by GCU. It is currently being revised in light of comments from various stakeholders. An
additional milestone is also proposed for developing an action plan to modernise MOF website (content,
structure, user-friendliness).
DAHRM, with the support of POPSM, conducted a PFM training mapping exercise covering 29 MDAs and
selected LGAs. This is intended to lead to development of a comprehensive training programme. On change
management, 30 component managers undertook training on change and result-based management. The
supervision mission identified the need for a better overview of the disparate PFM training activities,
particularly in the Ministry of Finance. Follow-up discussions with the Planning Division and DAHRM remain
essential.
In regard to Zanzibar’s PFM Reform activities it was decided that a coordinated approach would be
pursued by the development partners active or interested (PFMRP donors, Norway, UNDP, IMF East
Afritac) taking the Zanzibar three-year strategic PFM plan as a starting point.
As KRA 5 covers important cross-cutting issues as ICT, communication, EPICOR and other programme
management aspects, the progress made above is crucial for the entire PFMRP. It needs to be noted that
most activities need extensive coordination and communication among different Government departments
and institutions. This has proven to be difficult due to the time and capacity constraints in the MDAs. Most of
the activities under KRA 5 will show positive impact in a long term perspective.
Program Management Issues
The leadership provided by the Planning Division is a critical element for the successful implementation of
the outputs of KRA 5 and the entire PFMRP. The overall engagement of the PD was visible, however, senior
program management schedules did not allow for extensive discussions on KRA 5 and other issues during
the mission.
Out of the foreseen positions in the PFMRP IV secretariat, a procurement advisor, a financial advisor and a
communication specialist have been recruited and started working in January 2013.The programme has
been smoothly implemented since, PEFA central government exercise has been supported efficiently and
the 2013 supervision mission was well prepared. The fact that MoF has officially accommodated the DP
secretariat in the GoT secretariat (within MoF) has also proven a very positive element in facilitating
dialogue between DPs and GoT as well as in supporting the overall coordination function of the secretariat.
A programme coordinator, an M&E advisor as well as a PFM advisor are still outstanding. In a meeting with
the PS MoF, the staffing of the secretariat was discussed and some reorganisation has been proposed
and/or been considered. The recruitment of the M&E advisor is at an advanced stage while it was decided
that the PFM advisor position will be deleted.
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Financial Performance/ Monitoring
Turning to financial performance, the mission found that there is need for a review of the PFMRP working
documents (such as Operational Manual and MoU) with regard to the internal budget scrutinization,
management of budget in-year reallocations, procurement and other financial management issues. Given
the limited budget of PFMRPIV, prioritisation in planning is of paramount importance.
It is understood that the budgets for FY2012/13 and FY2013/14 were speedily approved without internal
scrutiny process given the fast approval of FY2012/13 and the adjustment time for new budget cycle for
FY2013/14.
The mission recommended that a way forward is designed to ensure the budget credibility of the PFMRPIV.
Recommendations of the mission:
- Guideline for reallocations based on a detailed analysis and value for money principles.
- Finding possible solutions to problem of delays in fund releases in the PFMRP.
Donor Coordination
There is a visible improvement in coordination of efforts by the Donor community in support of PFM reforms
in Tanzania. Through the PFM DPG, an opportunity is provided for information sharing around PFMRPIV,
other PFM related donor programmes and thematic discussions around PFM in general. A number of donor
missions have taken place in the last year with donor HQ staff/consultants meeting with PFM DPG members
to provide insights. The PFM DPG membership goes beyond the 5 PFMRPIV basket donors and includes
bilateral and multilateral donors. When relevant, CSOs have been called upon to make presentations to
DPG group. The PFM DPG is currently co-chaired by DFID and KfW and the group is supported by DP
secretariat that is accommodated in MoF.
The division of labour among the PFM active donors has also been enhanced around KRA participation with
a view to keep the working groups technically focussed, strategic and progressive.
Nevertheless, there remains a challenge to improve coordination with other actors such as USAID and IMF
East AFRITAC.
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5. PFM IN THE CONTEXT OF GBS
The assessments completed during this supervision mission will feed into the GBS Annual Review, including
the GBS Annual Report 2013. The assessment will include the rating of PFM as an underlying process
together with the performance against 4 key Policy Actions and 3 outcome indicators. The results of this
assessment are summarized in the table below showing the status on PFM’s PAF related KPA and
outcome indicators.
S/N KPA Assessment method agreed at sector leads
Comments Progress
7 Interface central and local government ICT with technical control and new software acquisition, and all new software developed becomes centrally coordinated 2013: Bring all GoT financial and peri-financial software under 1 common architecture with technical support structures. GoT policy prohibiting acquisition and introduction of stand alone software approved 2014: Milestones for 2014 to 2016 are taken from approved action plan and jointly agreed by GoT and DPs
Sequenced prioritized and costed action plan to bring all GoT financial and peri-financial software under one common Government Financial systems architecture with supporting technical infrastructure and management structures completed and approved by the GoT by June 2013.
Not achieved.
The ICT study is still in draft form. The study has been shared with other stakeholders. However, discussions between GoT and consultants still necessary before the report can be finalized. Further analysis needs to be done before GoT can decide which of the recommended models coming out of the report will be the most suitable one before a sequenced and costed action plan can be drafted.
8 Increase budget transparency and public access to key fiscal information
Based on the new budget cycle for FY2013/14, the Government ensures publication of the budget with: (i) the executive budget proposal [Volumes I-IV] as submitted to the Parliament published on the Ministry of Finance website, June 2013 (ii) the approved budget [all volumes] published on Ministry of Finance website by September, 2013 (iii) citizens budget published by November, 2013 (iv) budget execution report (year-end report) preliminary budget out turn published on Government of Tanzania websites by November 15, 2013
Achieved The executive budget proposals as submitted to Parliament II-IV have been published in June. Volume I is missing. All other deadlines have not yet passed. However, judged by last year’s performance on the KPA it is likely to be met.
Executive Budget proposal as submitted to parliament II-IV have been published in June except volume I
Approved budget to be published
Citizen budget under preparation with Policy Forum (CSO) as previous years
BER end-of-year report to be published
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9 Streamline and rationalize national systems and processes for intergovernmental transfers to LGAs
Comprehensive and sequenced two-year work plan, including a time-bound M/E framework with defined roles and responsibilities, to address shortcomings of the systems and processes of intergovernmental transfers finalized by June 2013. Key actions starting to being implemented by October 2013.
Achieved Final report has been discussed among stakeholders in October. A detailed action plan has been developed and the draft has been agreed on technical and director’s level. Discussion on management level of respective ministries has to follow as well as a political decision for some of the recommended actions. PMO RALG and MoF are coordinating closely their work in this area.
10 The Government improves efficiency in tax revenue mobilization both at the policy and the administration levels by updating legal instruments towards international best practices
2013: i) Submission of a Bill to Parliament to enact Tax Administration Act for the purpose of establishing a common tax procedure among different taxes collected by Tanzania Revenue Authority by end-April 2013 ii) Study on Non-Tax Revenue – “Integration and Harmonization of Revenue Collection Systems” in place by November 2013, and action plan to follow-up on recommendations by June 2014 iii) Submission of a new VAT Bill in line with best practice to Parliament by end-April 2013
Not achieved
i) A draft of Tax Administration Bill has been approved by Cabinet and has been submitted to Attorney General for verification. Attorney General submitted comments to the Legal department in MoF. Resubmission to AG is planned for early November. Once ready, the revised draft will be resubmitted to Cabinet committee for constitutional and laws before proceeding to parliament. The Bill is likely to be tabled in February 2014 to Bunge session.
ii) An inception report has been discussed with key stakeholders (income-generating MDA’s). A draft has been submitted end of October to MoF. Discussions with stakeholders will follow to finalize report by end of November 2013. This indicator will be achieved.
iii) Concept paper to amend act is been submitted to cabinet. Draft Bill is still been worked on by IMF and MoF after 1
st submission to
Cabinet. Draft Bill will be shared to internal stakeholders for comments. Recommendations from the soon to be finalised PER study on tax exemptions in the new VAT act will also be looked at before submitting to Cabinet and AG.
Two out of three indicators have not been achieved yet as per agreed deadlines, even though progress has to be noted. The 3
rd indicator (study) is
likely to be achieved within the agreed deadline.
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Cluster IV
S/N Outcome Indicator Target Assessment method as submitted by
sector leads
Data source and frequency
Comments Progress
1 Average level of compliance of: The top 20 procuring entities with the (revised) Procurement Act 2010. (MOF-PPRA)
BL+5% of baseline (71.1%)
In each fiscal year PPRA will rank all PEs based on the volume of procurement projected in the approved annual procurement plan (APP). The 20 PEs that rank the highest in volume will be selected for audit by PPRA during the annual audit cycle. PPRA will provide the following information in support of the outcome indicator: a) The list of the top 20 PEs based on the volume of procurement from the approved APP. b) The total of the procurement completed by the top 20 PEs expressed as a percentage of the total from the approved APPs. c) The total of the procurement completed by the top 20 PEs as a percentage of the total procurement completed within government for that fiscal year. Calculation: The average level of compliance for the top 20 PEs will be calculated as: the total of the “average compliance scores” from the audits of the
The average score along with supporting documentation on the Top 20 PEs will be provided to the Ministry of Finance, Planning Division, by Oct.31 annually. Basis of Audit - Compliance / Performance Indicators. The audit requested will be a full procurement audit and the revised compliance – performance Indicators approved for use in 2011 and will be the standard of measure used for the audit and reporting of results for the top 20 PEs. Results of special audits will not be accepted for use in calculating this outcome indicator.
Targets 2011-12 Baseline = 67.7% 2012-13 Target = 71.1% 2013-14 Target = 74.5 %
Average compliance 2012-2013 for the top 20 procuring entities is reported as 71.9% by PPRA – therefore target achieved
31
top 20 PEs divided by 20. The result will be a simple average without considerations of weighting based on the relative procurement volume of the Top 20 PES.
3 Reduction in outstanding audit matters (MOF-NAO)
TBC Reduction in value of last year’s baseline for "Payments made without proper supporting documents (Improperly vouched expenditure)" at central and local levels
Baseline and targets set and communicated. NAOT annual reports (at both central and local levels)
Not been rated
The indicator cannot be rated. The outstanding audit matters are collected by the respective resident auditors individually and manually. There is no central electronic data base to list outstanding audit matters per year and per auditee. NAO has collected background data from resident auditors and undertake currently data cleaning. What remains is decision what type of software to be used for data base and analysis. This however, takes time due to staff and time constraints at the NAO and could not be finalized until now.
6 Domestic tax revenue + non-tax revenue as a share of GDP (MOF-BUDGET)
17.8% Total tax and non-tax revenues (not including grants or privatization proceeds) for the fiscal year, but including dividends from BoT and SOEs including Regulatory Authorities, divided by GDP for the fiscal year
Tax revenue from TRA monthly, non-tax from MOF monthly. GDP from NSD quarterly
This will come out of the RBA
7 Value of tax exemptions as a share of GDP (MOF-PAD)
1.6% Value of all tax exemptions (VAT, excise, CIT, PIT) for the fiscal year, as calculated by TRA, divided by GDP for the fiscal year.
TRA, annually This will come out of the RBA
32
Looking forward towards the PAF 2014, Discussions with senior MoF management shows that MoF does
not want a PFM related indicator in PAF 14 as PFM related issues will be sufficiently assessed during the
UP3 assessment and discussion will take place within the framework of GBS high level dialogue. However,
this largely depends on the rules of the game defined in GBS framework. The Ministry of Finance has
proposed specifically that a short (one page) summary of key PFM issues including points for discussion is
prepared jointly by GoT and DPs at technical working level. This would be used as a briefing paper for
participants in a high level discussion to be scheduled as part of GBS Annual Review e.g. as a distinct side
event.
This does not of course preclude elaboration of PFM indicators to inform discussions and reporting whether
under UP3 or PFMRP.
33
6. CONCLUSION
The review of progress against the M&E framework suggests that PFMRP Phase IV is now in full swing. The
TWG discussion confirmed that component managers are engaged, activities are implemented and
developed further. At the same time the volume of work that is scheduled for completion in the next 12 to 24
months is still ambitious. It is important to highlight that some of the temporal blockages in the PFM process
are linked to pending legislative procedures. With the parliament due to discuss the draft Constitutional
Review in October/November, various legislative pieces/ bills (TR Act, VAT Act, Loans & Guarantees, Tax
Administration, Public Finance Act, Local Government Finance Act) are unlikely to be tabled until February
2014 at the earliest.
The broad scope of the PFM program remains a concern in terms of programme coordination and
management, resources mobilization to finance programme activities and linkage with interrelated reforms.
Program coordination and the early identification of emerging challenges will be critical to ensuring that the
momentum of the major cross cutting initiatives is maintained. It is also critical that the reform management
focuses solely on funding reform activities been supported under PFMRPIV. Due to scarce budget
resources there is a tendency among components to use PFMRPIV funds for recurrent activities.
In terms of limited funds for all reform activities management also has to emphasize that funding needs
clearly be guided by value for money aspects and a measurable impact on achieving objectives. It has been
noted that many capacity building activities have been included in the workplan. However, it will not be
possible to finance all necessary training initiatives even though the need for continuous capacity building is
clearly recognized by the mission. However, continuous training is clearly a recurrent expenditure and not a
reform activity. It is proposed to decide clearly what training costs can be covered and a clear cap on
training costs is strongly recommended.
It was also observed that implementation of many of the activities in KRA 5 was delayed due to late release
of basket funds in the fiscal year 12/13. The late approval of programme documents for the new phase IV
was a reason for these delays.
The continued strengthening of PFM systems is a critical element for Accountability, Transparency and
ultimately Good Governance. As such, the overall performance of PFMRP as a reform program and the
results that it produces will continue to be under close scrutiny by Government and Development Partners. It
is important that PFMRP strengthens its collaboration with different stakeholders to build and sustain
momentum on PFM reform agenda.
In conclusion, the joint assessment concluded that PFM reforms under PFMRPIV are making good
progress. Some of the milestones have already been achieved; a majority are on track, while a few of them
have been delayed. Performance across different KRAs varies. Activities related to Planning & Budgeting
34
(KRA 2), Budget Execution (KRA 3) & Budget Control and Oversight (KRA 4) show good progress, while
those on Revenue Management (KRA 1) and Change Management (KRA 5) show mixed progress.
WAY FORWARD:
Linked to UP assessment and in view of ensuring that key areas of risk are monitored and managed, the
mission proposes that the dedicated effort is given to the following areas:
Burning issues/Quick wins for the next period
KRA MAIN ISSUE OUTPUT MILESTONE TARGET FOR FY
2013/2014
COMMENT/RISK/LEVEL OF
DIALOGUE
KRA 1 Key legislation needs
to be enacted to allow
targets on revenue
mobilisation to
materialise
Output 1.2 The
Government improves
efficiency in domestic
revenue mobilisation
both at the policy and
administration levels
by updating legal
instruments towards
international best
practice
1.1.1, 1.2.8 +
1.3.6
These legislative changes have been
pending for a while
KRA 2 a) Budget lacks
credibility
b) Budget
documentation and
comprehensiveness
could be improved to
meet international
standards
c) Public acces to key
fiscal information could
be improved
a) 2.2 Increased
effective utilisation of
planning and
budgeting tools by
2016
b) Output 2.4 Quality
and
comprehensiveness
of budget
documentation as
well as public
access to key fiscal
information
(shifted from KRA
5.4)
c) Output 2.4 (see
above)
a) 2.2.9 + 2.2.10
b) 2.4.2 and 2.4.3
c) 2.4.1.
a) These are new milestones. This is
a critical issue that MoF needs to
raise with all MDAs – in order for
them to make realistic budgets
and to enforce greater discipline
in budget execution.
b) These are new milestones. This
can be a potential quick win –
requires better consolidation,
streamlining and structuring of
budget documents
c) This milestone has been
revised. This can be another
potential quick win.
35
d) Quality of service
delivery is not optimal
without clear LGA
budget allocation
process
d) Output 2.3
Strengthened
capacity of LGAs for
MTEF preparation by
2015
d) 2.3.4 All LGAs
budget
allocation
formulae
reviewed by
June, 2014
d) This activity has been delayed.
This has great significance for
quality of service delivery.
KRA 3 a) Public Procurement
Regulations are not
gazetted and therefore
PPA 2011 is not being
implemented
b) Lack of credibility in
cash flow management
leads to commitment
controls being by-
passed leading to
arrears and
reallocations
c) Un-reported
government operations
and insufficient
monitoring of
contingent liabilities
lead to fiscal risk
a) Output 3.1.
Strengthened Public
Sector Procurement
by June 2015
b) Output 3.2.
Strengthened
capacity of MDAs,
RSs and LGAs in
cash management by
2015
c) Output 3.3
Strengthened public
debt management
capacity by 2015
a) 3.1.2
B) New milestone
needs to be agreed
on cash flow
management and
strengthening the
cash management
unit and 3.2.3
c) 3.3.6 and 3.3.7
and 3.3.8
a) This reform can significantly
strengthen procurement controls and
oversight. Many activities linked to
this milestone have been delayed as
a result
b) This is a fundamental issue since it
affects the entire budget cycle.
Requires concerted action on two
fronts: 1/better cash flow forecasting
& management and 2/stronger
monitoring of payment arrears
c) It is critical for GoT to enhance
capacity and improve process to
monitor fiscal risk better
KRA 4 a) Oversight of
parastatals need to
be strengthened
b) Inadequate
follow-up and
compliance by
auditees on audit
recommendations
(internal & external)
a) Output 4.4
Improved
performance of
parastatals by June
2016
b) Output 4.1
Increased coverage
and quality of internal
audit functions by
2016 and 4.2
Strengthened external
audit functions by
2016
a) 4.4.4 New TR's
Bill presented to
the Parliament
by June 2014
b) 4.1.7 and 4.1.8
and 4.2.9
a) Legislation is still pending
b) This issue has been raised by
the CAG each year in the Annual
Audit Reports. Effective
monitoring of compliance by
IAGD and CAG is required
36
KRA 5 a) Lack of
integration/interface
between key
financial systems
b) The inter-
governmental fiscal
transfer process has
several weaknesses
a) Output 5.1
Coordinate
integration, interfacing
and rationalisation of
government financial
systems
b) Output 5.12
National systems and
processes for
intergovernmental
transfers to LGAs
streamlined and
rationalised
a) 5.1.3 and 5.1.4
b) 5.12.4
a) ICT mapping study has been
significantly delayed. There is
need to ensure that the process is
expedited.
b) The action plan needs to be
finalised and targets to be agreed
with MoF, PMO-RALG and sector
ministries
ANNEX A:
PFMRP IV MONITORING AND EVALUATION RESULT FRAMEWORK 2012-2017
September 2013 UPDATE
KRA 1 Revenue Management:
Strengthened systems, processes and procedures for improving the operational capability of the revenue collection
by June 2016
Outputs Performance
Indicators
Indicator Baseline
2011
Indicator Target
2017
Milestones Comments from Supervision
Mission 2013
Output 1.1: Improved
quality of forecasting
of fiscal aggregates
for three years on a
rolling basis
Aggregate
revenue out-turn
compared to
original approved
budget (PEFA: PI-3)
Actual domestic
revenue collection
was below 92% of
budgeted domestic
revenue estimated in
no more than one of
the last three years.
(PEFA: C)
Actual domestic
revenue
collection is
below 94% of
budgeted
domestic
revenue in no
more than one
of the last three
years. (PEFA: B)
1.1.1 Undertake a study to identify ways of improving tax revenue forecast and action plan by June 2014
Pending. Technical discussions with TRA and PAD and other stakeholders are on-going as there seems to be a need for PAD and TRA to agree on a roadmap and nature of the problem to be addressed in the study. This study can be a combined effort of internal and external assessment.
The PEFA retreat helped to reformulate a way forward and new milestone combining the previous 1.1.1 and 1.1.2 to a new milestone (Undertake a study to identify ways of improving tax revenue forecast and action plan by June 2014.
As such, it is expected that the
38
recommendations from study informs budget preparations for budget 2015/16 given the delay.
Increase in
number and
quality of
participating
MDAs and LGAS
with staff capable
providing
accurate, realistic
revenue
projections
Less than 5% of
participating MDAs
and LGAS providing
accurate, realistic
revenue projections
in 2010/11
50% of
participating
MDAs and LGAS
providing
accurate,
realistic
revenue
projections by
2017
1.1.2 A team of trainers in revenue forecasting developed by June 2014 (milestone to be reviewed in line with recommendations from the study)
On track. The implementation of this activity was planned to be done between April and June 2013. However, it was postponed to July, 2013 due to other pressing activities in regards to Budget preparation. Two TRA and 1 external consultant are on board to train the 5 selected trainees. The study still remains an important output in terms of improving the training. PAD to confirm this information as TRA discussions revealed that two types are training on revenue forecasting (MACMOD and specific to sector, i.e., natural resources forecasting tools)
Output 1.2: The
Government
improves efficiency in
domestic revenue
mobilization both at
the policy and the
administration levels
by updating legal
instruments towards
international best
practices
Increase in
collection of Total
and non-tax
revenues as
percentage of GDP
Total revenue
collection was 16.5 %
of GDP in 2010/11
Non-tax revenue was
1.2% of GDP in
2010/11
Total revenue
collection will be
at least 17.8% of
GDP by
2013/14-
Non-tax
revenue will be
at least 1.9% of
GDP by 2013/14
1.2.1 The study on Non Tax Revenue (NTR)-“Integration and Harmonization of Revenue Collection Systems” completed by November 2013
1.2.2 Action plan to
implement the recommendations from review of non-tax collection developed by June 2014
On track. Consultant submitted an interim report and this will be shared in MoF and stakeholders meeting. Finalization is foreseen in this quarter. PAD is confident that the action plan to follow-up on recommendations will be ready by June 2014.
On track. The action plan will be developed once the study is finalized. Revised milestone and an interim (new) milestone have been developed and renumbered next to non-tax study: “1.2.2 Action plan to
39
1.2.3 Costed action plan
incorporated in FY2015/16 for implementation
1.2.4 Submission of a bill to
Parliament to enact Tax Administration Act for the purpose of establishing a common tax procedure among different taxes collected by Tanzania revenue authority (TRA) by Feb 2014
1.2.5 Review Laws, rules and
Regulations for Local Government revenue
implement the recommendations from review of non-tax collection developed by June 2014” and “1.2.3 Costed action plan incorporated in FY2015/16 for implementation.”
New milestone
At risk. A draft of Tax Administration Bill had been submitted for Cabinet approval and Attorney General for verification. However, Attorney General Verification submitted its reservations for the Legal department in MoF to rework. Once ready, the revised draft will be resubmitted to Cabinet committee for constitutional and laws before proceeding to parliament. Given the change in the parliamentary calendar, it will not be possible to table the Bill in the Oct/Nov constitutional parliament session. The Bill is only likely to be tabled in February 2014 Bunge session.
On track. Progress on Local Government Finance Act revision as per milestone 1.3.6
40
system to improve LGA’s own sources in line with best practices by June, 2016.
1.2.6 Take policy action to
improve revenue mobilisation from natural resource sectors by June 2014
and 1.3.7 As the LGAs are governed by different laws (such as The Local Government (District Authority) Act CAP 287, The Local Government (Urban) Act CAP 288 and the Urban Authority (Rating) Act CAP 289) and other rules and regulations such as the Local Government Financial Memorandum, these may also need to be amended/reviewed to accommodate the changes made under Local Government Finances Act No. 9.
On track. ToRs for consultancy to recommend policy action have been developed and await availability of funds. However, MNRT has some made progress: review of different fees and charges chargeable for different services (antiquities, royalty fee for forest products) to reflect the market price; introduction of Tourism Development Levy (TDL) with first collection started this year expecting to contribute the increase of revenue by about 10 billion TSZ; grading of hotels in Dar es Salaam, Arusha and Manyara regions which facilitates correct charge of TALA License as well as improving tourism facilities database; follow - up visits to revenue collection areas and
41
1.2.7 Computerized revenue
collection to at least 50% from MNRT by 2016
training to about 230 revenue collectors on the regulations governing revenue collection in natural resources sector, rules and regulations of revenue collection as per Public Finance Act 2001 (Revised 2004).
On track. MNRT has recorded almost 50% computerised revenue collection mainly in Wildlife and Tourism. Computerization of revenue collection is as a result of recommendations of non-tax studies done over the years. Using recurrent budget, MNRT has 2 Computerized Revenue Collection Systems now in us: Photographic Tourism and Hunting Tourism. Hunting Tourism system was operationalised in July, 2012 while Photographic Tourism System in July, 2013. Now in last stages of completion is the Logs Tracking System which will be used by Tanzania Forest Services. By FY 2013/2014, MNRT is expecting to establish Tourism Operators Licensing System for system to be in use by January, 2014. (Milestone to be changed following forestry moving to separate agency: link to LGA revenue collection was with forestry department).
42
Tax exemptions as
a percentage of
GDP
2.2% Target :
2012: 1.9%
2013: 1.6%
2014: 1.2%
1.2.8 Review the current system of tax exemptions with the value-added Tax (VAT) regime and amend the VAT Act with a view to be in line with international best practices by November 2014
On track. Draft of Bill submitted by consultant (IMF) is currently being reworked after 1
st submission. Draft Bill
will be shared to internal stakeholders for comments. It was expected that Bill will be sent to Cabinet and then submitted to AG before final submission to Parliament. There could be a possibility incorporate the recommendations from the soon to finalised PER study on tax exemptions in the new VAT act.
Output 1.3:
Strengthened
capacity of local
government
authorities to collect
revenue by 2015
Local Government
Own source
revenue to GDP
Actual revenue
collection by LGAs
2010/11: Tsh
158,280 million and
0.46 % of GDP
Local
Government
Own source
revenue will be
1.5% of GDP
1.3.1 Completed assessment and evaluation of revenue potential for all major own sources of revenue to all LGAs by June 2014
1.3.2 Local Authorities Tax
administration teaching and practice modules established and TOT
Delayed. With orientation from Mzumbe University, PMORLAG undertook the assessment to identify major revenue potentials in 30 LGAs
3. More
time has been required to analyse the data. The draft report will be shared with stakeholders in Oct and a joint workshop would be held in Nov 2013. Target date changed to June 2014.
On track. The training modules and TOT are yet to be developed.
3 Shinyanga MC, Tabora MC, Magu DC, Urambo DC, Kahama/Ushetu DC, Bunda DC, Mtwara MC, Lindi MC, Mtwara DC, Newala DC, Nachingwea DC, Ruagwa DC, Songea
MC, Mbeya CC, Iringa MC, Mbinga DC, Mbarali DC, Mufindi DC, Ilala MC, Morogoro MC, Mpwapwa DC, Mvomero DC, Kibaha TC, Bagamoyo DC, Arusha CC, Moshi MC,
Monduli DC, Siha DC, Korogwe TC and Muheza DC.
43
completed for all finance management staff at the regional level by June 2014.
1.3.3 PMO - RALG staff and
Finance Management Officers at RS to be trained in tax revenue plans and budgets to spearhead LGAs tax reviews and reforms. June 2014
1.3.4 Four (4) Revenue
Accountants, 3 Council management team members and 1 FMO from each LGA and RS are trained on own source revenue management by June 2014.
1.3.5 Establishment of known and clear revenue data base by each source of revenue, presence of trained personnel and a clear follow up arrangement at PMORALG and RS levels by June, 2015
Delayed. Training has not been undertaken yet. The TORs for the consultant to conduct the training are yet to be shared and training is expected to complete before Dec 2014. A TOT team of 8 personnel will be trained: 8 staff from PMORALG and 4 staff from RAS. (Target date changed to June 2014)
On track. The ToT will facilitate
training of LGA staff as a Step-by-
step approach: Study
Develop training modules Train
the ToT team (PMORALG and RS)
Train LGA.
On track. There is need to agree on the intermediate steps to be taken for establishment of a revenue database and for PMORALG to unpack this milestone to reflect the work that needs to be covered on the ground. The database is supposed to be developed based on the study and encompass sources, rates, potentials, budget, and
44
collection methods. Target date moved to June 2015
Local Government
legislation
reviewed by 2016
(Act No. 7, 8 and 9)
The last amendment
of the Local
Government
Finances Act No.9 of
1982 was done in
year 2002. The act
does not adequately
address issues of
equity, change of
technology and other
administrative issues
to enhance local
revenue mobilization
considering the
present and future
LGAs circumstances.
Local
Government
Finances Act
No. 9 reviewed
by 2014
1.3.6 Completed study on the effectiveness, relevancy and sufficiency of the provisions of the Local Government Finances Act No. 9 by June, 2014
1.3.7 A bill for an act to amend the Local Government Finances Act No.9 of 1982 is finalized and submitted to the Cabinet by Nov 2014
1.3.8 Improvement of Financial Management in LGAs by June 2015
Delayed. No funds released to
finance this activity. However,
PMORALG to provide more
details on status of the study,
i.e., TORs development, etc.
Target date: June 2014
At risk. This activity is dependent on the study (milestone above) completion. The mission recommends that date is moved to Nov 2014.
New milestone that exists in FY2013/14 under KRA 5 for ACGEN but has not been included on milestone table. ACGEN requested that the milestone and its activities is moved to PMORALG.
Output 1.4: Increase
of donor funding that
flows through the
exchequer system by
2016
Percentage of
disbursement of
direct project fund
portfolio via the
exchequer
20% 50% 1.4.1 National framework for managing development co-operation (Development Cooperation Framework, DCF) reviewed, disseminated and put in operation by March 2014
Delayed. The roadmap to move DCF approval forward includes consultation with Heads of Departments with Zanzibar to be involved for inputs. A NSA workshop as well as a Joint Mainland-ZNZ PSs meeting is foreseen. By end Sept, consultation with DPs will be undertaken. The final doc is expected to be sent to parliament (4 selected
45
1.4.2 Revised AMP user
guideline clearly communicated to both parties by Dec 2014
1.4.3 Analysis of trends of the
direct project fund portfolio disbursed via the exchequer system published and shared annually by June 2015
committees) and cabinet paper approval with launch expected Nov/Dec 2013. The TWG discussed the potential delays and readjusted the milestone to March 2014.
Delayed. AMP user guidelines to be shared as soon as it completed. Training on updated AMP was conducted to obtain feedback from the users. This feedback will be used to improve the user guidelines which are being revised. Further, the milestone was revised to relate only to AMP guidelines and not revised JAST (DCF) guidelines.
On track. The annual report of trends was published. The PEFA 2013 report positively highlights that the use of country PFM systems by donors has improved. However, both the PEFA and the EFD emphasised that there is more that needs to be done particularly in creating a clear understanding to both DPs and Sector Ministries/Project implementing agencies on the importance of having project funds on government budget. The mission was informed that the PER secretariat intend to commission a study on analysis of trends.
46
KRA 2 Budgeting and planning:
Strengthened capacity of planning and budget management, including results and program based budgeting,
within MOF, MDAs and LGAs by June 2016.
Outputs Performance
Indicator
Indicator Baseline
2011
Indicator Target
2016
Milestones Comments from Supervision
Mission 2013
Output 2.1:
Strengthened
capacity of MDAs,
RSs and LGAs in
implementing
program based
budgeting by June
2016.
Presence of
Programs-based
budget
classification (PI-5)
The 2008/09 budget
formulation and
execution is based on
administrative and
GFS –compatible
economic
classification. There
is no CoFoG-based
functional
classification and
budget
documentation and
reporting system (PI-
5C)
The budget
formulation and
execution will
be based on
administrative ,
economic and
functional
classification
(Using at least
the 10 main
CoFoG
functions), using
GFS/CoFoG
standards or a
standard data
can produce
consistent
documentation
according to
2.1.1. All sub programs, objectives and performance indicators defined by Dec 2012
2.1.2. Chart of accounts
Modified to accommodate program based budgeting by August 2013
On track. PBB template developed and MoF organised a working session end of August 2013 with 8 pilot Ministries (Ministries of Finance, Water, Works, Transports, Education, Health, Community Development and Agriculture). The assignment to MDAs was to convert FY 13/14 budget into PBB format. Another session will take place last week of October / first of November.
Achieved. Modification of the Chart of Accounts has been done (one segment added). However, it has not yet been implemented.
47
those standards
(PI-5B)
2.1.3. MTEF reviewed to make program based budget compatible by September 2016
2.1.4. Progress on the PBB
Action Plan implementation annually
On track. However, the initial timeline (Sept 2014) won’t be met as FY 14/15 won’t be PBB yet (work on budget guidelines has already started). The reviewed MTEF will build on the existing one. MDAs and LGAs have been informed on the coming change, preparation has begun. . It was agreed to move the timeline for all MDAs and LGAs to be compatible to September 2016 but with a continuous follow-up of the roll-out.
On track. Existing PBB Action Plan will be reviewed after the October working session with pilot Ministries. It will include a Policy Paper in order for the Cabinet to formally authorise the use of PBB. PBB will be implemented in a stepwise fashion starting with a number of Pilot ministries and then move to other MDAs, regions and LGAs. All MDAs and LGAs to be compatible by September 2016.
48
Increase in number
of MDAs and RSs
with skilled staff for
implementing a
program based
budgeting
In 2011, there are no
staff in MDAs and
RSs with necessary
skills to implement
program based
budgeting
95 % of MDAs
and RSs have
staff with
necessary skills
to implement
program based
budgeting
2.1.5. Completed phased training for all MDAs and RSs by Sept 2016
2.1.6. Completed phased
training for all LGAs by Sept 2016
On track. The training is still
at a pilot phase (technical
staff). BUDGET to provide
more exact figures of trained
people to date. It was agreed
to move the timelines for the
completed phased training of
all MDAs to September 2016
but with a continuous follow-
up of the roll-out.
On track. LGAs so far are not part of the pilot. An issue was raised as to the compatibility of PBB with LGA formula-based allocations. It is not clear whether the decision to include PMO-RALG in the PBB working sessions to reflect the specificities of LGA formula-based budgeting has been taken. It was agreed to move the timelines for the completed phased training of all LGAs to September 2016 but with a continuous follow-up of the roll-out.
Output 2.2:
Increased effective
utilization of
Planning and
budgeting tools by
Percentage
increase in number
of MTEF budgets
meeting the
MTSPBM
In 2011, less than
75% of MTEF budgets
are meeting the
standards of
98% of MTEF
budgets are
meeting the
MTSPBM
2.2.1 MTSPBM reviewed by Dec 2014
Delayed. However, initial
timeline won’t be met as
MTSPBM is planned to be
reviewed this financial year
(2013/2014). It requires joint
49
2016 requirements by
2016
MTSPBM standards 2.2.2 Sixty MDAs, 21 RSs and
133 LGA trained in MTSPBM by June 2014
2.2.3 Reviewed MTSPBM to
be applied during FY 2014/15
2.2.4 Annexes to budget
book volume II for Executive Agencies completed by June 2014
work with the Planning
Commissioner.
On track. However,
completion may be delayed
as MoF is only at the stage of
developing a Training Budget
Manual.
On track. However, the mission agreed that milestones 2.2.1 + 2.2.2 + 2.2.3 need to be reformulated and/or new timelines provided. BUDGET to advise.
On track. This milestone will be partially achieved by timeline, as only some of the 133 public agencies will be covered by June 2014. It will be included in the PBB Action Plan, the level of detail required for these annexes is still under discussion. MoF plans to organise training on MTEF to public agencies
Orderliness and
participation in the
annual budget
process by 2016 (PI-
11)
i) A comprehensive
budget calendar
exists but delays are
sometimes
experienced. MDAs
have 6 – 8 weeks to
i)A clear annual
budget calendar
exists, is
generally
adhered to and
allows MDAs
2.2.5 Action plan on implementation of recommendations on budget legal framework completed by xxx (revised date)
Delayed mainly due to external constraints. Review of the Public Finance Act is under process but the new Constitution is likely to further delay it. The Local Government Finance Act will also need to be changed, as
50
submit their budget
ii) A comprehensive
budget circular and
budget preparation
guidelines are issued
but the MDAs
ceilings are not
always approved by
cabinet before issue
(B)
enough time (at
least six weeks
from receipt of
budget circular)
to meaningfully
completes their
detailed
estimates on
time
ii) A
comprehensive
and clear
budget circular
is issued to
MDAs which
reflect ceilings
approved by
cabinet or
equivalent prior
to the circular
distribution to
MDAs(A)
2.2.6 At least 10 PER Main
Dialogue meetings held by June 2016
it currently doesn’t include IFMS. The PPP Act will also be changed. In parallel, the Parliamentary Budget Committee is pushing to have a separate Budget Act. Budget to advise on new timeline.
On track. The PER process has been strongly revitalised since June 2012. The PER Champion Group has had regular meetings on the on-going 5 studies and an annual dissemination workshop is planned for beginning of October 2014.
Percentage
reduction in
deviation of actual
expenditure from
approved budget
In 2011, the
percentage of
deviation of actual
recurrent expenditure
MDAs budget at vote
level compared to
approved budget but
excluding salary
Actual
expenditure
deviated from
budgeted
expenditure by
an amount
equivalent to
not more than
2.2.7. Phased training to MDAs, RSs and LGAs Budget Committees on resource prioritization and planning
On track. Training for MDAs on Prioritization and Planning was carried out and also MDAs were oriented to the New budget cycle for their comments and implementation. However, at risk revenue collection for FY 2013/2014 has already encountered problems during
51
adjustments,
contingency and debt
service was at 13.7%
10% the July-August-September period, thus already leading to possible revenue shortfalls. MoF is currently drafting a paper to inform the Cabinet MoF acknowledged that budget credibility as significant challenge and of high priority. There is a need to completely reformulate the milestone, building on PEFA recommendations.
Quality and
timeliness of in-
year budget report
(P-24) by 2016
Comparison to
budget is possible
only for main
administrative
headings.
Expenditure is
captured either at
commitment or at
payment stage (not
both)
Reports are prepared
quarterly( Possibly
excluding first
quarter), and issued
within 8 weeks of end
of quarter
There are some
concerns about the
accuracy of
Classification
allows
comparison to
budget but only
with some
aggregation.
Expenditure is
covered at both
commitment
and payment
stages.
Reports are
prepared
quarterly and
issued within 6
weeks of end of
quarter
There are some
concerns about
2.2.8. Mechanism for quality assurance of Quarterly Budget Performance Reports (level of detail, timeliness, accuracy, consistency and usefulness to decision makers, as well as for budget transparency to citizens) established by June 2013
On track, as end-of-year
report is planned to be
published on MoF website by
Mid-November. However,
there is need to reformulate
this milestone as the terms
“mechanism for quality
assurance” is not clear.
52
information, which
may not always be
highlighted in the
reports, but this does
not fundamentally
undermine their basic
usefulness (C+
the accuracy,
but data issues
are generally
highlighted in
the reports and
do not
compromise
overall
consistency/usef
ulness (B)
Increase budget
credibility
(Minimise
deviations in
Aggregate Out-turn
and Composition
Variance)
2.2.9. Budget reallocation warrants published by September every year.
2.2.10. Government approves actions for improving budget credibility based on a review of reallocation warrants in the past four years - by June 2014
New milestone under BUDGET responsibility following PEFA finding.
New milestone under BUDGET responsibility following PEFA finding.
Output 2.3:
Strengthened
capacity of LGAs for
MTEF preparation by
2015
Comprehensiveness
of information
included in budget
documentation (PI-
6)
Currently there no
sufficient information
on LGAs revenue
planning and
budgeting which is
included in the
budget
documentation.
Supportive and
verifiable
revenue data
and information
to be included in
the LGAs budget
documentation.
2.3.1. Proposal for budget information to be included in the Budget guideline to be submitted to National Budget Guideline committee by October annually
Achieved. LGAs’ own source revenue budget information has been substantiated and shared with the National Budget Guideline Committee. This was reflected in the 2012-13 National Budget Guidelines. In order to demonstrate the significance of the progress made, PMO-RALG committed to share by 11
th October its
submissions to the National Budget Guideline Committee
53
2.3.2. Recommendations of
various studies on LGAs budget allocation formulas reviewed by January 2014
4.
2.3.3. Agreement on
improvement of LGAs budget allocation
for the last two fiscal years.
Delayed. There are significant delays in the review of the LGAs budget allocation formulas. Analytical review has not started yet, which puts at risk the whole sequence of milestones. It was agreed that implementation steps should be fast-tracked to ensure that all reviewed LGAs budget allocation formulae are applied in the 2014-15 budget preparation for the 2015-16 budget as per milestone 2.3.5. It was further agreed that the analytical review should be decision-oriented, include proposals on arrangements for monitoring deviations from formula based allocations (milestone 2.3.6), and look into the impact of the transition to PBB on the allocation of LGAs resources on a formula-basis. The timeline for the milestone was proposed to be shifted to January 2014. PMO-RALG to share draft ToRs.
Delayed. Pending achievement of 2.3.2. The timeline for the milestone was proposed to be
4 This will include recommendations to be made by the fiscal decentralization taskforce in LGRPII by June 2014. The M&E framework under LGRPII included
performance indicator to measure application of formulae based allocations to actual fund transfers
54
formulas among the Sector Ministries (PMO-RALG, MOF, PO-PSM and Sectors) completed by June, 2014
shifted to June 2014. The new formulas are expected to be used in FY15/16.
Various studies in
fiscal transfers and
decentralization
process in Tanzania
indicates that
Budget allocation
to LGAs reflects a
more inequitable
distribution of
resources to LGA,
and that the
allocation formulae
are not fully
applied. There is a
need to revisit all
the existing budget
allocation formulae
to clearly reflect
equitable allocation
of financial
resources by June
2016.
Currently budget
allocation formula
follow, population,
land area and
poverty level,
Budget
allocation
formula reflects
resource needs,
distances from
service facilities,
special area
diseases,
number of
projects to be
implemented,
number of
orphans etc.
2.3.4. All LGAs budget allocation formulae reviewed by June, 2014
2.3.5. All reviewed LGA budget allocation formulae applied in the budget preparation during 2014/15 for the FY 15/16 budget.
2.3.6. Monitoring arrangements in place for measuring deviations in actual releases against all formula-based allocations to LGAs for FY 15/16.
Pending achievement of 2.3.3
Pending achievement of 2.3.4
Pending achievement of 2.3.2. While the timeline for the milestone is June 2015, it was agreed that implementation should be fast-tracked, taking advantage of the analytical review under 2.3.2.
Output 2.4 Quality and comprehensiveness of budget documentation as
Public Access to key
fiscal information
2.4.1. Public Access to key fiscal information: Timely publication of key fiscal information as listed below:
a. Budget guidelines
New output and milestone under BUDGET responsibility following PEFA finding.
55
well as public access to key fiscal information (shifted from KRA 5.4)
published by December every year
b. Executive budget proposal (Vol. I to IV) as submitted to Parliament published by June every year
c. Approved budget (all volumes) published by September every year
d. Quarterly budget execution report published within a month after end of quarter.
e. Year-end budget execution report published by October every year
f. Citizen’s budget published by November every year
2.4.2. Action plan for improving quality and comprehensiveness of budget documentation based on PEFA assessment developed – by December 2013 2.4.3 Changes in quality and comprehensiveness of budget documentation reflected in 2014-15 budget documentation
New milestone under BUDGET responsibility following PEFA finding.
New milestone under BUDGET responsibility following PEFA finding.
56
KRA:3 Budget Execution, Accountability and Transparency:
Improved utilization of public resources in a more effective, efficient and transparent manner by June 2016
Outputs Performance
Indicator
Indicator Baseline 2011 Indicator Target 2016 Milestones Comments from Supervision
Mission 2013
Output 3.1:
Strengthened
public sector
procurement by
June 2015
Number of
Public
procurement
regulations
issued
Number of
Skilled
procurement
staff
None( to be established
after baseline study)
None( to be established
after baseline study)
% increase in number
of Public procurement
regulations issued
% increase in number
of skilled Procurement
personnel in PEs
3.1.1. Action plan for
implementing PPA
is developed by
Dec 2014
3.1.2. New public
procurement
regulations
prepared and
Delayed. The PPRA/PPPD
are yet to iron out the
development of the action
plan as part of their
cooperation agenda.
Collaboration between
PPPD and PPRA will be
necessary to draw this
action plan. To implement
the PPA, PPRA will conduct
training with government
procurement service
agents, and information
will be disseminated,
including on their website.
Implementation depends
on the gazetting of the PPA
2011. Milestones could be
revised after finalization of
the action plan
Pending. Parliament passed
the law in 2011 and the
draft of the public
procurement regulations
57
issued by June
2013
3.1.3. Procurement
training needs
assessment
exercise completed
by Dec 2014.
3.1.4. [300] procurement
staff trained on
public
procurement by
June, 2017 as per
TNA
has been prepared and
submitted to the Attorney
General’s office for
verification. Following the
minister’s finalization, the
regulation will be
submitted to responsible
parliamentary committee
responsible for Finance and
Economic Affairs.The
regulations become
effective after being
gazetted.
Delayed. The inception
report on training needs
assessment in LGAs has
been completed, while the
assessment at MDA and
RAS level remains in
progress with ToRS
developed and shared.
Target date shifted to Dec
2014.
Pending. Will be done after
completion of TNA
exercise. It was agreed that
the number and type of
training will be revisited
depending on the findings
and recommendations of
58
3.1.5. Strategy to
develop
Procurement
Management Unit
(PMU) structures
in Public Sector by
June, 2015
3.1.6. Procurement and
supplies staff
database
maintained and
updated by
December, 2015
the TNA. There may be
need to prepare for
training modules given the
TNA recommendations..
On track. Zero draft for
proposed PMU structure in
the Public Sector has been
prepared using internal
means. Draft is sent to
POPSM. The milestone was
revised to reflect to the
correct focus.
On track. The data base
with information for 1,022
Public Procurement and
Supplies Staff (covering
Tanga and Morogoro
regions) has been verified
and updated. PPPD intends
to roll out to 8 more
regions (Mara, Mwanza,
Kagera, Geita, Rukwa,
Iringa, Mbeya and Katavi)
and complete data inputs
in 2 months.
Presence of
procurement
policy draft by
None National procurement
policy developed and
disseminated to
3.1.7. National
procurement
policy draft
Delayed. National
procurement policy draft
has been prepared.
59
June, 2013
PPDs’ capacity
enhanced by
June, 2013
National
procurement
policy and
procurement
law
synchronised
None
None
None
stakeholders
i) Motor vehicle
and office
equipment
acquired
ii) Short training
for 20 members
of PPD staff
conducted
Public Procurement
Act 2011 reviewed
800 Stakeholders
acquainted with the
finalized by Dec
2014
3.1.8. Stakeholders’
comments
incorporated by
June, 2013
3.1.9. PPPDs’ capacity
enhanced by June
2017
However, the process
requires the MoF to submit
to committee of PSs
(IMTC), an implementation
plan which includes the
policy strategy (can be
done in-house: seeking
reallocation). Afterwards,
the policy draft will be
submitted to the Cabinet
for approval. New target
date: Dec 2014
Achieved. Stakeholders’
meeting conducted and
comments incorporated in
the draft National
Procurement Policy
Dissemination will follow.
On Track. 8 PPPD staff
capacity enhanced with
skills on public policy
formulation,
implementation and
evaluation. Another 8 staff
will be trained. Currently,
PPPD has 18 staff.
60
Stakeholders
acquainted
with the
National
procurement
policy
National
procurement
policy
strategy in
place by
December,
2013
None
None
National procurement
policy
National procurement
policy strategy
implemented
3.1.10. Twenty (20)
members of PPPD
staff equipped
with skills on
public policy
formulation,
implementation
and evaluation by
June, 2014
3.1.11. National
procurement
policy developed
and shared by
December, 2014
3.1.12. National
procurement
policy strategy
developed and
implemented by
June 2015
3.1.13. Printing and
uploading the NPP
on the website by
June, 2015
3.1.14. National
procurement
policy and
procurement law
synchronised by
June, 2015
3.1.15. Monitoring the
The 2014 onwards targets
for the national
procurement policy are all
on track – targets within
reach.
61
implementation of
the National
procurement
policy by June,
2015
3.1.16. Evaluation and
feedback of the
implementation of
the National
procurement
policy by June,
2016
3.1.17. 1000 Stakeholders
acquainted with
the National
procurement
Policy by June,
2016
Output 3.2:
Strengthened
capacity of MDAs,
RSs and LGAs in
Cash management
by 2015
Increase in
number of
staff with
adequate
skills on cash
management
10 staff with cash
management skills
610 staff with cash
management skill
3.2.1. 600 staff of MDAs and LGAs Trained on cash Management using standardized materials by June 2015
5
On track. 286 staff from MDAs have been trained on cash management using in-house means based on East-AfriTAC methodology.
5 The 2012 supervision mission noted that the milestone may need to be reviewed and aligned after the East AFRITAC recommendations on Cash and Banking
Arrangement Mission. ACGEN to confirm if this is done.
62
Decrease in
the aggregate
number of
bank accounts
operated by
LGAs by 2015.
The aggregate number of
bank accounts operated
by LGA are 4,736 in 2011
3938 bank accounts
will be closed by
December 2013
3.2.2. Six bank accounts
operated by each
LGAs by December
2013
Achieved. Since July 1st
2012, 6 bank accounts per LGA are now operated However, at the request of donors (World Bank + AfDB), it was authorized to add 2 more accounts (water and DASSIP projects). The ACGEN TWG added that If NMB is able to extract financial information on specific project, then the move back to 6 bank accounts should be advocated for as the current practice is step backwards with regards to the rationalisation of bank accounts at local levels.
Strengthen monitoring of payment arrears
3.2.3. ACGEN to present a monthly report on payment arrears to ceiling committee effective Dec 2013
New Milestone following PEFA finding on need to limit commitment outside the IFMIS (i.e. towards contractual obligation to service only with LPO coming from IFMIS)
Output 3.3:
Strengthened
public debt
management
capacity by 2015
Recording and
management
of each cash
balance, debt
and debt
guarantees
(P1-17) by
2016
i) The various databases
containing debt data are
currently in the process of
being merged. Data
quality is considered fair
and minor reconciliation
problems occur. For the
data entered in CS DRMS,
statistical reports are
i) Domestic and foreign
debt records are
complete, updated and
reconciled on a
monthly basis with
data considered of
high integrity.
Comprehensive
management and
statistical reports
3.3.1 The agreed actions arising from the Feb. 2012 World Bank debt management report shared with key stakeholders by July 31, 2012 (Milestones to be reviewed
Achieved. Report published on MoF website and shared
63
Indicator: DSA, risk analysis, Revised Act (ceiling provisions annually)
regularly produced (B)
ii) The balances of several
government bank
accounts in commercial
banks are not
consolidated, though
there is a plan to do so
(D).
iii) Contracting of loans
and issuing guarantees is
approved by Minister of
MOF in line with rules,
but there are no ceilings
(C)
(cover debt service,
stock and operations)
are produced at least
quarterly (A).
ii) Calculations and
consolidation of most
government cash
balances take place at
least monthly, but the
system used does not
allow consolidation of
bank balances (C).
iii) Central
Government’s
contracting of loans
and issuance of
guarantees are made
within limits for total
debt and total
guarantees (B).
3.3.2 Debt management policy developed and shared by June 2014
3.3.3 Capacity of 50 Public
Debt management staff enhanced to undertake DSA on external, domestic debt and contingent liabilities by June 2014.
On track. With technical support from the World Bank and the East African MEFMI, MOF has conducted a debt sustainability analysis (DSA), which covers both domestic and external debt. The DSA output is expected to serve as key inputs for the country’s new Public Debt Management (PDM) Strategy that will guide the government borrowing policy going forward. Work is underway on the draft of this new PDM Strategy, which MOF expects to finalize by the end of October 2013. Target date: June 2014
Pending. Despite funds not being available, capacity continues adhoc basis (such as secondment of GoT to MEFIM on risk management and another to WB) while waiting for PO PSM approval of new structure of DMO when a capacity building assessment will inform the capacity needs. The new structure would include a middle office - MO (PAD),
64
3.3.4 Review of
Government Loans, Guarantees and Grants Act by June 2014
3.3.5 Debt Management
department
front office -FO (BoT) and Back Office- BO (ACGEN)
On track. MOF has also been working on the revision of the current Loans Act to incorporate provisions that will insure a greater control of public indebtedness growth, and limit fiscal risks stemming from contingent liabilities. The new Loan and Guaranteed Act whose draft the MOF expects to finalize and submit to Cabinet by June 2014 will include provisions for a yearly ceiling on the amount of direct public borrowing and a limit on the amount of loan guarantees GOT can grant to other public entities such as Public authorities and other bodies (PA&OBs). It will also contain provisions for a greater control by MOF of those projects financed under the Public Private Partnership framework that may have fiscal implications for the GOT
On track. In anticipation of the establishment of the
65
established by June 2016
centralized DMO, MOF has identified several areas of needs for which MOF will seek GOT and Development Partners support. These include among others:
Capacity building of the new DMO staff in various aspects of public debt management, including risk management, issuance of treasury securities for cash management, and conduct of DSA; it is worth mentioning that so far, training on public debt management activities has been conducted on an ad-hoc basis by each of the various entities involved in PDM (BOT, ACCGEN, PAD);
Ability of the new DMO to attract and retain skilled staff in public debt management;
Acquisition of hardware and software for public debt management
“Management of risk emanated from Contingent liabilities created by PA
Quarterly detailed
report on public debt
published on disclose
on its website with
information on both
3.3.6. Quarterly monitoring of contingent liabilities of PA&OBs
3.3.7. Annual monitoring
New milestone as at Sept 2013 (following PEFA 2013 findings). PAD to take the lead with support from TR.
New milestone as at Sept 2013 (following PEFA 2013
66
& OB's by June 2017”.
domestic and external
debt, all outstanding
loans guarantees
granted by the GOT, all
liabilities of those
PA&OBs owned by the
GOT, and outstanding
borrowings by PA&OBs
from the Public
Pension Funds with
GOT guarantee
of guarantees approved by GoT for PA&OBs and for PPP financed projects
3.3.8. Detailed and quarterly debt report prepared and published.
findings). PAD and later DMO to take the lead with support from TR.
New milestone as at Sept 2013 (following PEFA 2013 findings). PAD and later DMO to take the lead with support from TR.
Output 3.4:
Improved integrity
and content of
government
financial
statements and
the migration
from IPSAS cash to
IPSAS accrual
accounting for all
government
accounts is
progressing in
accordance with
plans.
Quality and
timeliness of
annual
financial
statements
(PI-25)
i) Central Government final accounts include revenue, expenditure and bank balances, and since 2007/08 data on most financial assets and liabilities are disclosed with few exceptions. (B)
ii) Financial Statement are submitted for external audit within 6 months of the end of fiscal year. (A)
iii) Cash basis IPSAS has been applied since 2007/08. (B
i) Central Government final accounts disclose full information on revenue, expenditure and bank balances, financial assets and liabilities (A)
ii) Target for 2013 -125 staff and 2014-125
iii) (ii)Financial Statements are submitted for external audit within 6 months of the end of fiscal year. (A)
IPSAS applicable to all
financial statement
3.4.1 Completed review of the IPSAS guideline issued by PMORALG in 2008/09 to accommodate the recent IPSAS updates by June 2013
3.4.2 Training to the MDAs, RSs and LGAs accounting officers to develop awareness on IPSAS Accrual by June 2014
3.4.3 Capacity building to
250 staffs from MDAS and RSs and Embassies to
At risk. As the milestone was not understood for ACGEN, it has been moved to PMORALG.
On track. 320 people (chief accountants from MDAs, Public Accounts Committee (PAC) members and staff from foreign embassies) have been trained and 86 accounting officers are scheduled to receive training in the financial year 2013/2014.
Achieved. 250 staff from MDAs and Embassies were trained on IPSAS accrual.
67
enhance skills in IPSAS accrual by 2014
3.4.4 Public Finance Act of
2001 and Regulations reviewed to address migration to IPSAS accrual by June 2016
3.4.5 Consolidated template of financial statements to include MDAs, Rs, LGAs, Controlled entities &GBEs developed by June 2016
On track. The review of the Public Finance Act is still ongoing, with major stakeholders such as the ACGEN having already commented on a draft. Since the budget cycle was put forward, this process has somehow been slowed down. Future feedback to be provided by legal service department
On track. Much progress towards the consolidation of financial statements has been the harmonisation in all entities of the Chart of Accounts, reviewed to follow GFS 2010 standards. By June 2014, the chart of accounts will be completed accommodating all. Entities will therefore be able to produce reports in similar formats. However, effective consolidation will require additional steps, such as a fixed asset register completion. IPSAS allows provision for 5 years to ensure all assets are identified and valued before process of consolidation.
68
Stage of the
transition
confirmed
against
approved
action plan.
Reports of the
Auditor
General
confirm
improvement
The decision to transition
all government accounts
to full accrual accounting
has been made but
detailed action plan has
not been finalized or
approved.
2009-10 Government
accounts received an
adverse opinion.
Central Government final
accounts include revenue,
expenditure and bank
balances, and since
2007/08 data on most
financial assets and
liabilities are disclosed
with few exceptions. (B)
Financial Statement are
submitted for external
audit within 6 months of
the end of fiscal year. (A)
Cash basis IPSAS has
been applied since
2007/08. (B)
IPSAS Accrual
migration action plan
has been completed
approved and is in
process of execution.
Implementing
migration plan as
targeted.
Quality and integrity of
government financial
statements is
improved as evidenced
by the reports of the
Auditor General
Financial Statements
are submitted for
external audit within 6
months of the end of
fiscal year. (A)
3.4.6. 250 government accountants in MDAs /LGAs trained in IPSAS accrual and accrual modules for Epicor by September 2013
3.4.7. Plan for migration towards IPSAS Accrual accounting is completed by December 2013.
3.4.8. Plan is approved for execution and stakeholder information sessions have been completed by January 2014
3.4.9. All legislative and
policy supports decisions have been identified by December 2014
3.4.10. Milestones for the transition have been identified and approved (e.g. Public Finance Act.2001 and Regulations amendments) by October 2014
Achieved. Training was conducted on IPSAS Accrual basis to MDAs, RS & Embassies accountants.
Achieved. The 5 year road map is in place and often upgraded to be fully compliant to IPSAS.
Achieved. The plan has been approved and is in use. Awareness been done to some of the stakeholders (e.g. PAC members). Other groups will follow
On track. Some of the legislative and policy supports have been identified such as accounting policy, PFA, Accounting manual, LGF act and TR act. The committee is still collecting opinions from various stakeholders.
On track. Some milestones have been identified
69
3.4.11. Consolidated
accounts with IPSAS Accrual by June 2017.
3.4.12. ACGEN to compile and produce financial statements disaggregated on the basis of economic classification and by sectors
Pending. Currently the Government (Central) is migrating to accrual basis of accounting before considering moving in centralized IPSAS Accrual architecture with all stakeholders. Plan is that by 2017, to be compliant with consolidation
New milestone as at Sept 2013 (following PEFA 2013 findings).
Output 3.5:
Improved
accountability in
management of
Government
Assets for
supporting
migration to
IPSAS Accrual
Number of
MDAs which
are now
reporting their
financial
position
through IPSAS
Accrual
Number of
MDAs which
have been
None
20 MDAs( 28%) have
been valued and
uploaded in EPICOR
% increase of MDAs
reporting their
financial position
through EPICOR asset
management module
by 2016 (Targets to be
set after migration
action plan towards
IPSAS Accrual
Accounting is
completed)
% increase of MDAs
3.5.1. Uploading of 70 additional MDAs in EPICOR by June 2016
On track. Before establishment of GAMD, 20 MDAs were integrated in EPICOR, as such an additional 16 MDAs were uploaded (using in-house expertise) in EPICOR making to total 36. As such, the task of verifying assets importation documents after testing and final uploading in EPICOR is scheduled to be completed by August, 2013.
70
valued and
uploaded in
the EPICOR
valued and uploaded
in EPICOR by June 2016
(Targets to be set after
migration plan
towards IPSAS Accrual
Accounting is
completed)
3.5.2. Asset Management (tracking) software installed, tested and users are trained on use of software by June 2014.
3.5.3. GAM capacity
enhanced on asset management function by June 2016.
3.5.4. Asset Management
Policy prepared and submitted by June 2015
On track. Installation is ongoing at GAMD HQ (web based) but with unlimited users and linked to EPICOR with a cloud backup. Need to look at need for purchase of bar codes scanners and computers. The contractor will provide training of trainers on use of ASSET software. There will be a need for interface with EPICOR..
On track. 4 staff scheduled to attend training on asset management. Training programme available
On Track. Contract has been awarded and ongoing. Draft policy is scheduled to be received by February 2014. The draft policy will be shared with other stakeholders before submission to IMTC and Cabinet secretariat. Policy will support drawing of laws, regulations and directives pertaining to management of public assets. Covers all asset categories (31 classes) of IPSAS and IFRS
71
3.5.5. Valuation of Government assets in 34 MDAs and RSs completed by June 2017
On track. The 5-year
valuation plan is in place
for valuation of
government assets in 7
MDAs on average each
financial year. A consultant
has been engaged to assist
with valuation of
Government assets and to
verify inception report.
After data cleaning, an
interim document (GA
guide) will give MDAs
depreciation methods, etc
for preparation of asset
statements each year. The
idea to include a
counterpart staff to
accompany the consultant
in the valuation exercise.
NOTE: Previous milestone (3.5.6. Progress against target reported annually) deleted as the TWG did not find it useful.
72
KRA: 4 Budget Control and Oversight:
Improved adherence and enforcing of MDAs and LGAs to financial internal controls, rules, laws, regulations and
audit recommendations by June 2016
Outputs
Performanc
e Indicator
Indicator Baseline 2009
Indicator Target
2016
Milestones
Comments from Supervision
Mission 2013
Output 4.1:
Increased
coverage and
quality of the
internal audit
functions by 2016
Percentage
increase in
unqualified
opinion in
the
external
audit
report for
MDAs and
LGAs
54% of MDAs and 65%
LGAs obtained
unqualified opinion in
2009/2010
65% MDAs and
75% LGAs will get
unqualified opinion
in 2015/2016
% of IAUs
conforming with
IAGD guidelines
which are based on
international
standards
4.1.1. Operational plan developed and approved by June, 2013
4.1.2. Internal audit manual/guidelines, standards and quality assurance improvement programme, which complies with international standards and best practices, will be in place by June 2013
4.1.3. 450 Internal
auditors trained Quality Assurance
Achieved. Operation Plan for 5 year 2013 – 2017 approved and disseminated to all IAUs.
Achieved: The internal audit manual was prepared and consultant is incorporating comments from stakeholders; Quality assurance and improvement program procedures (QAIP) manual was prepared, approved and disseminated.
New Milestone following the PEFA finding on IAGD to continue monitoring
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and Improvement Programme Procedures Manual by June 2015
4.1.4. Independent quality assurance assessment of (Internal Audit Units) IAUS in MDAs and LGAs completed by June 2016
compliance with IA benchmarks
New milestone. The baseline survey can be used as a database. Enough information on MDAs.
Effectivene
ss of
internal
audit (PI-
21)
i) Internal audit function exists in most MDAs, and it is estimated that 20 percent of staff time is allocated to system based reviews and high risk areas (C)
ii) Reports are issued for Most MDAs but these are not copied to NAO (C)
iii) To some degree actions are taken by management on
i) Internal audit is operational for all Central and Local government entities, and generally meet professional standards.
ii) At least 50% of staff time is allocated to system based reviews and high risk areas.
iii) Reports adhere
to a fixed
schedule and
are distributed
to the audited
4.1.5. Effective IAU and audit committee established and internal auditors conduct compliance audit and evaluate effectiveness of internal control in MDAs and LGAs by June 2016
On track. Survey report (conducted by Mzumbe university) on effectiveness of Audit Committee and Internal Audit units in LGA is ongoing. Survey on MDAs audit committee is ongoing. The Audit committee guidelines are being developed by M/S Ernst & Young and 1st draft was sent out for comments on Sept 2013. The training to 350 audit committees will be conducted by M/S Consonet which will accommodate the recommendations of survey and utilise the
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major issues but often with delays (C)
entity, Ministry
of Finance and
NAO (B)
iv) Action by
management
on internal
audit findings
will be taken
within one
month after
issuing a report
and should be
comprehensive
across Central
and Local
government
entities (B)
4.1.6. The Pilot stage of
Computerised Audit will be finalized by June 2014.
guideline. The recommendation to accommodate the legal provision on the composition of audit committees. Further, training on IPSAS to internal auditors is underway by M/S Kepler Associates and Training on the business model of EPICOR was conducted to 80 internal auditors.
An awareness workshop to 340 IA stakeholders (mayors, council chairpersons, chairperson of Audit committees, Heads of IAUs. Need for an internal control for public sector.
On track. Acquisition of the audit software is in process. The intention is to pilot in 3 MDAs and 2 LGAs would be conducted by June 2014. Training will be conducted after procurement of audit software. Further, 3 staff
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4.1.7. Computerised
Audit in place by June 2016.
were trained on payroll software and are using it to undertake a payroll audit
On track. Roll out to follow after completion of pilot.
Technical Audits
conducted for 20
Projects in 2011
70 Technical Audit
conducted by 2016
4.1.8. Technical Audits are conducted for 70 Projects by June, 2016
On track. The baseline survey (construction, water + irrigation projects.) has been done and report is available. The training on technical audits to IAs who will undertake the technical audit to be conducted from July 2013 and the consultant is already engaged. In FY2012/13, additional 13 technical audits were undertaken using other funds
Ensure agreed corrective measures in response to audit findings are taken
31 (10%) IAUs in MDAs
and LGAs have
submitted quarterly
reports with reference
to CAG follow-up
% of MDAs and
LGAs have
submitted
quarterly reports
with reference to
CAG follow-up
4.1.9. Implementation
status of corrective measures for internal and external audits (CAG recommendations)
New Milestone following PEFA finding which recommends that agreed corrective measures in response to audit findings are taken. It is important to note that the IAGD will
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Improve adherence to financial regulations and controls - Continue to monitor compliance with IA benchmarks
submitted by all the IAUs in MDA/LGA to IAGD on quarterly basis by June 2014
monitor and follow up to MDAs, RSs and LGAs implementation of CAG recommendations through interaction with accounting officers.
Number of staff equipped with skills on risk-based audit
Capacity enhancement on guidelines for Fraud Risk Management, Internal Control, Risk management Monitoring and
100 staff trained in risk
based internal audit
550 internal audit
staff are trained in
risk based audit
4.1.10. 550 internal auditors and other stakeholders trained in risk management process and risk based audit by June, 2016
On track: The contract for consultancy service to train 150 Head of departments and Audit committee Members from MDAs and LGAs on risk management process has been signed and training preparation is on process. The contract for consultancy service to train 160 internal auditors from MDAS and LGAs on risks based audit, Governance and Controls has been signed and training preparation is on process. Technical team for review and streamline Risk Management process in PFA has been selected;
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Evaluation
300 Accounting
Officers, Head of
Departments, Audit
Committee
members and
internal Auditors
on the guideline for
Fraud Risk
management,
Internal control,
Risk Management
Monitoring and
Evaluation
Study
recommendations
to inform next
course of action
4.1.11. To train 300
Accounting Officers, Head of Departments, Audit Committee members and internal Auditors on the guideline for Fraud Risk management, Internal control, Risk Management Monitoring and Evaluation by June 2017
4.1.12. Study to assess
the ICT needs for effective internal audit management and control by June 2015.
Preparation for monitoring the implementation of the Institutional Risk Management Framework in 20 MDAs and 30 LGAs is on process; Piloting in 10 LGAs for developing a risk based plan.
New Milestone
New milestone. This milestone will look at the follow-up mechanism for CAG recommendations and risk management as a comprehensive audit tracking software.
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Output 4.2:
Strengthened
External audit
functions by 2016
NAO
reaches
AFROSAI-E
Level 3
Increase in
number of
NAO staff
capable of
issuing audit
reports as
per
international
Level 2
NAO did not reach at level
3 in 2010 as planned
because of lacking two
criteria. Out of 10 criteria,
NAO cleared 8criteria.
Other 2 criteria are (1)
NAO staff should not be
Civil Servants, and (2)
Appointment of CAG by
the Parliament. The 2005
assessment scored NAO as
level 1.
A committee was formed
to conduct legal review
and will submit a report on
needs of legal
amendments to reach at
level 3.
The committee members
visited South Africa, Kenya
and Uganda.
NAO to reach Level 3
by 2016
Capacity of NAO
audit service
strengthened by
2016
80% of Auditors to
have be
accommodated in
own offices
800 Auditors trained
on Risk Based Audit
and 400 in IT audit
Five value for money
audit reports to be
produced each year
by NAO staff without
technical assistance
from external
consultant
4.2.1. The committee report on needs of legal amendments (existing laws) to contribute towards reaching level 3 submitted to the attorney General and awareness by December 2012.
4.2.2. 100% of auditors are moved from auditee premises to NAO offices by 2015
Achieved. An AFROSAI-E team elevated NAOT to level 3 of AFROSAI-E capability model in early 2013. The ambition is now to move towards level 4. As such, a report on need to revise the Laws and Policies was submitted to the Attorney General’s Office for action, however with the ongoing Constitutional review, the amendment of various laws will follow after the new Constitution. NAOT submitted to the Constitutional Review committee NAOT views on Articles related to NAOT meanwhile addressing Independence of the CAG.
On track. Construction of Dodoma (80%) and Rukwa (50%) on going. Procurement process for identification of a Consultant to supervise construction of two office buildings in Iringa and Mara regions is in final stage. Meanwhile CAG is renting offices in 5 regions (Tabora, Mwanza, Iringa, Tanga and Dar es Salaam) and there are 11 own offices in Dar es Salaam, Morogoro, Dodoma, Singida, Shinyanga, Kilimanjaro, Arusha, Manyara, Ruvuma, Mbeya an Lindi regions
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technical
and
professional
practices
Value for
Money
Audits to be
conducted
by NAO staff
with
minimum
technical
support by
external
Consultant
Adoption
and
application
of
International
auditing
Standards in
all audit
assignments
Most Auditors are
accommodated in
Auditees premises
100 Auditors trained on
Risk Based Audit
One VFM report is
produced by NAO staff
each year without
technical assistance by
external Consultant
200 auditors trained on
International standards on
auditing (ISSAI,
IPSAS.ISSAI,IFRS,ISA)
800 auditors trained
on International
standards of auditing
and Full adoption of
International audit
standards
4.2.3. 300 Auditors trained on Risk Based Audit and 200 in IT audit by 2014
4.2.4. Two (2) Value for Money audit reports to be produced each year by NAO staff without technical assistance from external consultant by 2014
4.2.5. 300 Auditors
trained on international standards of auditing and full adoption of International Audit Standards by 2014
On track. 200 auditors have been trained on enhanced Risk Based Audit and 100 auditors have been trained on IT audit. At the same time the office has created a group of IT auditors who eventually will form IT audit unit. IT audit in Sept/Oct 2013 to be undertaken using Sweden and GoT funds. New milestone on support to new IT unit from NAOT to follow.
Achieved. More than 5 performance audits p.a. are being carried out using internal coaching, providing a base to build on. Last financial year audit won AFROSAI award for East Africa region.
On track. 200 auditors have been trained on International Standards of auditing and 100 senior officers have been trained on quality (supervision) assurance. The NAOT Regularity Audit Manual has been up dated to comply with International Standards. Training undertaken by 12 champions. In addition, an Auditors conference took place in June 2013. A training impact assessment will be undertaken.
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Number of
MDAs. LGAs
and
Parastatals
reached for
financial
audit
All 86 MDA, 134 LGAs and
about 122 Parastatals
were covered by Financial
Audits.
All MDA, LGAs and
Parastatals are
covered by Financial
Audits by 2016
4.2.6. Closing of books of accounts for Parastatals harmonized and audit modalities agreed by 2014.
On track. Forum with CEOs of Public bodies to discuss on harmonization of closing of books of accounts and round table with Board of Directors of Parastatals was conducted. Decision to harmonize closing of books of accounts needs time and more discussion at technical level. Despite this, 176 parastatals were audited by Dec 2012. Two more are expected for next FY (NIDA and …). Harmonisation depends on the TR Act as such the NAOT has to follow up with TR with regard to this milestone.
Scope,
nature and
follow-up of
external
audit (PI-26)
by 2016
i) In the last three years, the audit report, including consolidated financial statements of government, was presented to the legislature six months after the receipt of financial statements (B)
ii) No electronic system currently exists to consolidate and easily access data regarding outstanding audit findings and recommendations, including their age.
i) Audit reports are submitted to the President within 9 months (per the Public Audit Act) of after the end of the financial year.
ii) Fully operational and easily accessible database to support Government’s efforts to reduce outstanding matter(findings and recommendations) .
4.2.7. Audit methodology in line with ISSAIs guidelines adopted by June 2013
4.2.8. Scoping study to ascertain the parameters of the outstanding matters database is completed by November 2012
4.2.9. Establish a database that will separate findings (monetary and non monetary) and recommendations including by age, and record follow up actions (i,e
Achieved. Guidelines already in place
Delayed. The scoping study has been completed. Data for the outstanding audit recommendations has been collected and analysis is on- going.
At risk. Creation of data base for tracking outstanding audit recommendations is ongoing. Data has been collected, analysis including preparations of software requirements is ongoing. There is need to conduct training and support on the system of tracking
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matters closing) by December 2013.
outstanding matters raised in CAG reports by June 2014.DFID offered support on development of software and its requirements.
Increased
application
of ICT in
auditing and
connectivity
(by Wide
Area
Network ) of
NAO offices
20 staff trained on ICT
application in auditing
NAO offices are not
connected
One TeamMate module
(Electronic working
papers) is applied in
auditing
600 Auditors trained
on Audit
Commanding
Language (ACL) and
other audit based
software
NAO Headquarters is
connected by all 21
regional offices using
WAN by 2016
All five Teammate
modules applied in
auditing by 2016
4.2.10. 300 Auditors trained on audit commanding language (ACL) and other audit based software by 2014.
4.2.11. NAO Headquarter is
connected to 10 Regional offices using WAN by 2014
4.2.12. Two of five Team
Mate modules applied in auditing by October 2014
Achieved. 200 Auditors has been trained on ACL (part of IT training). There are 50 licences on ACL. The office has created a group of IT auditors who eventually will form IT audit unit. The NAO discussed the need to take accounting officers on board. Long term plans are for a training institution that could be converted into to AFROSAI training institution with possible Chinese funding for the infrastructure
Achieved. 12 NAOT offices have been connected with WAN fiber optics, the office is currently using intranet for internal communication with the help of WAN. 4 more to be connected.
On track. Application of 1 (electronic working paper) Team Mate module . Action plan in place to activate four modules with support from NAO Development project and PFMRP
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Output 4.3:
Improved
transparency on
audit reports
(central, local and
parastatal levels)
to strengthen
scrutiny and
accountability.
“Citizen
Audit
Report”(sim
plified audit
reports
accessible by
the general
public) are
published
4 Consolidated audit
reports (central, local,
POABs and
VfM/Performance) are
publicly available on the
NAO website after tabling.
NAO set up a booth at
Trade Fair (Saba Saba) and
Public service week where
general audit reports are
distributed to visitors.
All General audit
reports are
accompanied by a
‘citizens audit report’
(short summary of
the key audit findings
and
recommendations, in
both Swahili and
English) and are
available in a timely
manner (within 4
weeks after tabling)
on the NAO website
and at NAO offices all
over the country by
2016.
4.3.1. Citizen audit reports available for the 4 General audit reports by June 2013 and onwards on annual basis.
On track. The citizen audit report (FY 2011/12) for 5 General audit reports in Kiswahili language has been prepared internally and printed. Dissemination was undertaken in July/Aug 2013.
Output 4.4:
Improved
performance of
parastatals by June
2016.
Increase in
number of
Parastatals
implementin
g
performance
contracts by
June 2016
2 Parastatals (TRL & TPA)
were implementing
Performance contract in
2009
All Parastatals will be
implementing
Performance
Contracts by June
2016
4.4.1 Ten Pilot Parastatals Signed Performance contracts with TR by June 2013
Pending. The templates are yet to be agreed with the 10 parastatals.
Oversight of
aggregate
fiscal risk
from other
public sector
There is weak Monitoring
of Parastatals as their final
number is still to be
established and their
consolidated overview is
All Parastatals will
submit fiscal reports
including audited
account to TR and
consolidates overall
4.4.2 Database on Parastatals set up and functioning by December 2014
Achieved. The TR’s database (TRIMS) has been developed. However, since TR has moved from MoF, discussions are ongoing on its actual location.
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entities (PI-
9) by 2016
Increase
compliance
rate on TR’s
Act by
Parastatals
by June 2016
missing
Compliance rate on TR’s
Act by Parastatals is below
70% in 2010/11 (PI-9: D)
fiscal risk issues into
an Annual TR
Financial Statements
(B)
Compliance rate on
TR’s Act will be 100%
by June 2016
4.4.3 M&E mechanism for measuring Parastatals compliance rate set up, reviewed and implemented by June 2015.
On track. Establishment of monitoring framework is reliant on the enactment on the new TR Bill. Given the timeframe for the Bill there is optimism that the framework will be set up by June 2014. Further, TR undertook review of 31 financial regulations, 31 staff regulations, 32 schemes of service, 3 voluntary agreements and 12 strategic plans. The mission was informed that the TR Act will be more stringent on compliance.
NOTE: The TWG recommended that TR merges the previous milestones: “4.4.3 - Monitoring framework for Parastatals set up by June 2014” and “4.4.3. Mechanism for measuring Parastatals’ compliance rate developed by June 2014” together with milestone on “1.2.10 “M& E system for Parastatals reviewed and implemented by June 2015” as these three milestones seem to refer to the same monitoring framework/M&E system.
Increase in
Revenue
from
Parastatals
as
Revenue from Parastatals
was 0.55 % of total
approved domestic
revenue collection in
Revenue from
Parastatals will be
4% of total approved
domestic revenue
collection by June
4.4.4 New TR's Bill presented to the Parliament by June 2014
Delayed. The draft of the TR Bill was discussed by IMTC in August 2013 instructing the TR to rework and resubmit to their level. If accepted, it will be submitted to the Cabinet
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percentage
of Approved
domestic
revenue
collection
2010/11 2014 4.4.5 150 Parastatals’
Acts Reviewed to be in line with the New TR Act by June 2014
4.4.6 TR’s Office
Capacities enhanced by June 2014
level (Ministers and President). The target date has been be readjusted to Nov/Dec 2013 for Cabinet submission and the Bill is expected to be approved by June 2014.
On track. When the Bill has passed by Parliament, TR will individually revise the 150 Parastatal’s Acts. In the meantime, areas of conflict between TR Act and the various legislations have been identified and incorporated in the new TR Act. TR to share the list.
On track. 33 TR Staff attended short courses in 2012/13 based on the TNA undertaken. In addition, the TR is now accommodated in their own offices (not based in MoF). However, capacity constraints may need to be addressed. As noted last mission, training of new and existing staff and for highly specialised training is key. TR to provide more clarity on the long-term capacity development and training plan. TR has currently 56 staff but the organisational structure provides for 205.
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Output 4.5:
Strengthened
capacity of
oversight functions
of Parliamentary
Accounts
Committee in
Tanzania Mainland
Number of
PAC
members
trained
Evidence of PAC
members making
follow-up on financial
audit
recommendations in
the respective MDAs
and LGA
4.5.1. Capacity building interventions to PACs conducted annually
On track. The training to members of Parliamentary Accounts Committees (PAC and LAAC) on interrogation skills was undertaken, as well as training on understanding CAG reports and elementary knowledge of financial statements. PFMRPIV facilitated the PACs MPs regular monitoring visits of projects. However, the mission did not meet with the parliamentary committees. The mission recommends that a dedicated workshop (with PAC chairs, Clerks, Parliament Office, NAOT, MoF, DPs) is held as an opportunity for PACs to draw medium term plans in order to have a clearer understanding of PFMRPIV support fits within this broad context and discuss how more effective this support can be.
Output 4.6:
Improved public
procurement
performance by
PEs by 2015
Average
level of
compliance
of i) all
procuring
entities (for
follow-up
audits) and
Old target
(63%+75%)/2=68%
i. 66 % of tenders under open tendering process
Target will be
based on new set
of indicators
+20% of baseline
(new BL by
October 2012)
i) Accurate data on
4.6.1. Annual PPRA audit results confirm positive trend on a yearly basis
On track. The results of the annual review of procurement compliance are due by end September. The overall trend appears positive across all assessment categories. The VfM audits have been carried out on selected construction projects including in the water
86
ii) the top 20
procuring
entities with
the (revised)
Procurement
Act 2011
Competition,
value for
money and
controls in
procurement
(PI – 19)
were advertised in fiscal year 2006/2007 (B)
ii. Using less competitive procurement methods is allowed with justification. PPRA audits in 2008/09 show that the great majority of contracts now use the correct methods (B)
iii. A comprehensive complaints mechanism operates, but for unknown reasons the number of complaints has declined (B)
the method used to award public contracts exists and shows that more than 75% of contracts above the threshold are awarded on the basis of open competition(A)
ii) Other less competitive methods when used are justified in accordance with clear regulatory requirements (A)
iii) A process (defined by legislation) for submission and timely resolution of procurement process complaints is operative and subject to oversight of an external body with data on resolution of complaints accessible to public scrutiny (A)
4.6.2. Revised
procurement implementation and monitoring tools issued by March 2014
4.6.3. New Public
Procurement Act, 2011, Regulations and Tools disseminated to major PEs and other key stakeholders by December 2015
4.6.4. Procurement plans
aligned with MDAs, LGAs and parastatal Institution Strategic plans by June 2015
and irrigation sector
On track. A consultant has been hired to develop Procurement Implementation tools in line with the PPA 2011 and new regulations which awaits approval of the Minister. Consultant is using the draft PPA regulations in completing the monitoring tools.
On track. PPA 2011 has been disseminated in June and July 2013 to 85 Board of Directors and 189 Accounting officers of Public Entities. However, there has been delay in approval of the regulations. Some amendments are needed to better accommodate the needs of public-private partnerships, however the majority of draft regulations are ready.
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4.6.5. Value for money procurement enhanced through Framework contract in procurement of common use items and services by June 2017
4.6.6. PPRA operational
and outreach capacity strengthened by June 2014
On track. A survey to update database on average prices of goods and services in collaboration with GPSA is underway. This annual survey will help to set a base for average prices. Further, a Compliance audit at GPSA should help to sieve pricing problems identified.
On track. PPRA expects to open new zonal offices and employ up to 141 staff from current 52 staff. It was not clear from POPSM how this process works. However, PPRA plans to have 5 zonal offices and currently, the Dar es Salaam old office building is under rehabilitation, while Dodoma staff are housed in MoF building and Arusha office space is still under process.
Increase in
number of
PEs using e-
procurement
system
(PMIS)
Currently, 203 PEs are
using PMIS (Procurement
Management Information
System)
393 PEs will have a
functional PMIS and
pilot e-procurement
system will start
functioning by Nov
2016.
4.6.7 All (393) PEs will have a fully functional PMIS as a reporting tool for procuring entities to report back to PPRA by Nov 2014
4.6.8 e-procurement will
start functioning as pilot stage by Nov 2016
On track. 610 Users from 299 PEs are now registered and use PMIS. Training on PMIS has begun and is due for completion in December, and a fully functional PMIS as reporting tool is still expected by November 2014
On track. Terms of reference for a consultancy has been developed but will be finalized after approval of the new
88
regulations of PPA, 2011. A study tour (India) will also be done by the Board to learn from experiences of other countries
Increase in
number of
PEs reached
for
procurement
audit
Currently 330 PEs have
already been audited.
In June 2012 all 393
PE’s will be audited,
then beyond F/Y
2012/2013 will be “
Follow-up Audits
(should be
repeatedly process
especially on Top 20
PE’s
4.6.9. Completion of audits of one-third of all PEs annually (current total PEs: 493)
4.6.10. Follow up audit of
100 PEs to be done annually by 2016
4.6.11. Annual
Procurement Performance Evaluation Report prepared and published Annually
Achieved. All PEs (493) were audited. The TWG recommended that milestone be revised to reflect an annual rate of completion of one-third of all enterprises (current total: 434).
On track. This procurement
audit for 2012/13 started in
April 2013 and it is ongoing
until end of August 2013
Achieved. 2011/12 Annual procurement performance evaluation report was published on PPRA Journal and Website. The 2012/13 is expected to ready in Sept ad published in Feb 2014.
Output 4.7. HCMIS entrenched in service delivery points in selected sectors and its sustainability attained
HCMIS ownership at SDP for effective accountability, HR Management, Budget expenditure and Payroll in the relevant sectors.
4.7.1. User requirements, gap analysis and Infrastructure requirements identified for 160 SDP undertaken by October 2014 4.7.2. Installation of HCMIS at 160 SDP by June 2016
New milestone to be agreed by TWG.
New milestone to be agreed by TWG.
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Human error and checks and balances reinforced in the management of payroll through improved systems.
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KRA:5 Change Management and Programme Management:
Improved management practices with increased accountability and leadership to better manage performance of
PFMRP
Outputs
P-Indicator
Indicator Baseline 2011
Indicator –Target
Milestone
Comments from Supervision
Mission 2013
Output 5.1:
Coordinate
Integration,
interfacing and
rationalization of
Government
financial systems.
Interface
central and
local
Government
financial
managemen
t system and
tools
MDA /LGA IFMIS systems
are not harmonized and or
integrated and are not
being centrally managed.
Stand alone software
continues to be acquired
and implemented.
DFISM with
overarching technical
control for all
government IFMIS
systems is fully
staffed and
operational.
ICT Infrastructure
capable of
supporting approved
systems architecture
is in place
All Government
financial systems (
SBAS, PlanRep,
RIMKU, IFMS) have
5.1.1. ICT mapping exercise showing location and owners of all and peri-financial software commenced with inception report published by December 2012. (refer PAF 2012)
5.1.2. Stakeholder
coordination meetings held to gather input and agree on cross functional responsibilities for financial systems Planning held on by December, 2012
5.1.3. Sequenced, prioritized and
Achieved. The consultant has submitted and presented a final draft report on mapping exercise which is being reviewed. However, it seems that there may be need to look at coordination with e-government agency study as part of stakeholder consultation.
Delayed. A stakeholder workshop (Oct 2013) will be held to discuss the report and recommendations arising from mapping exercise in view of paving the way for a comprehensive action plan towards integration option.
Delayed. It awaits a feasibility study report on ICT mapping on
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been integrated and
interfaced and
financial data is
smooth exchanged
between systems.
162 LGAs, 25 RSs and
3 institutions under
PMO RALG connected
with IFMIS by
Dec.2015
costed action plan to bring all GoT financial and peri-financial software under one common Government financial systems architecture with supporting technical, infrastructure and management structures completed and approved by the GoT by June, 2013
5.1.4. Integration/ Interfacing plan is engaged and series of planned actions are being executed and completed by October, 2015
all GoT financial and peri-financial software from the consultant.
On track – target within reach. Awaits the process of action plan.
133 LGAs are connected to
the IFMS
167 LGAs, 25 RSs and
3 institutions will be
connected to the
IFMS
5.1.5. IFMS infrastructure installed to new 35 LGAs, RSs and PMORALG institutions and connected to central server at Dodoma and MoF by Dec 2014
On track. The process of selecting supplier and the signing of contract terms for supplying IFMS infrastructure was completed. The assignment was expected to be completed at the end of August 2013 with 163 LGAs as at 1
st July. There is no funding
for computers, connectivity between LAN within the local authorities, procurement of infrastructure and training
Evidence of
analytical
133 LGAs, 21 RSs and 3
PMORALG institutions
162 LGAs, 25 RSs and
3 Institutions will be
5.1.6. MoF IFMS (EPICOR) linked to PMO-RALG
Pending. There is need to
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reports
generated
from the
system
available at
MDAs and
LGAs level
could produce.
Operation Reports, and
Management Reports
able to produce;
Operation Reports
Management Reports
Final account reports (Financial Statements), and
Other reports like Council financial and development report s (CFR & CDR), Mkukuta strategies implementation report by target, etc.
IFMS to the immediate capture of the Approved Budget and all Exchequer transfers to RSs and LGAs respectively by June 2014
5.1.7. Completed capacity building to key users of IFMS from all LGAs, RS and PMORALG institutions by June 2014
5.1.8. Audit of IFMIs in LGAs conducted by June 2015
recruit a consultant to create
an interface between the two
EPICOR system.
On track. A manual was
prepared for LGAs (93 key staff
from new LGAS) and training
undertaken using the manual
systems (hardware tools not
yet available). The training will
be completed by end of Sept
2013.
On track – target within reach
Output 5.2:
Utilization of
EPICOR modules
Increased from
seven to ten
Upgraded
version of
EPICOR with
ten modules
in-place. The
new
modules are:
Multi – Site Management.
EPICOR module are
not fully utilized
Upgraded EPICOR
with ten modules in-
place
5.2.1. EPICOR system upgrade completed by December 2014
5.2.2. ACGEN staff capacity enhanced by
Achieved. EPICOR system has been upgraded from version 7.3.5 to version 9.05 with 10 (among others: multi-planner, executive analysis and material management) modules installed of which 6 are activated. The asset module has been activated with 34 MDAs valuation information been uploaded (see more information under asset management).
On track. Training to 40 ACCGEN staff on EPICOR 9
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Replication Server License.
Advanced Financial Report Designer
December 2014
5.2.3. Training for IFMS end users on the upgraded modules conducted by December 2014.
On track. Training (using in-house trainers) in progress with 381 end users trained n EPICOR 9 (110 ends users from regions). ACGEN to confirm number.
NOTE: Previous milestone 5.2.4 – EPICOR is able to provide real-time information to all LGAs on flow of funds by July 2015 “ was deleted as decided by TWG.
Output 5.3: All
software
development and
module upgrades
are coordinated
with the
overarching plans
for ICT integration.
Number of
systems that
are linked
into an
IFMIS
platform
and
available for
common use
ICT Planning is single
purpose and not
coordinated with other
harmonization activities
All software
development is
integrated within a
fully rationalized ICT
architecture.
5.3.1. FISM is operationalized and controls are put in place to manage software acquisition and development by 2015.
5.3.2. FISM staff capacity enhanced by June, 2015.
Delayed. Server room has modification (civil work and electronic work) is almost complete to manage acquisition of software and development. Data and cooling works will be undertaken later. FISM yet to report on policy as regards development of strategy to control the growth of standalone financial software.
On track. FISM has 65 staff. 7 staffs have been trained on Data Center Infrastructure Specialists, ICT Security, Database Management and Data Center Operations Specialists. FISM to provide more information on training plan with costed details.
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Output 5.4:
Improved
communication
and public access
to key fiscal
information to
stakeholders
Public access to key fiscal information:
1. Annual budget documentation,
2. In-year budget execution reports,
3. Year-end
financial
statements,
4. External
audit
reports,
5. Contract
awards,
6. Resources
available to
primary
service
delivery
units (PI-10)
The government makes
available to the public 5
out of 6 types of
information, but two of
them are not complete: in-
year budget execution
reports and contract
awards. Resources
available to primary
service providers are not
published (A)
Special surveys were
undertaken within the last
three years, but their
results and methodologies
used have not been seen
(D)
The government
makes available to
the public 5 out of 6
types of information-
(A)
Special surveys
undertaken within
the last 3 years have
demonstrated the
level of resources
received in cash and
in kind by either
primary schools or
primary health clinics
covering a significant
part of the country
OR by primary service
delivery units at local
community level in
several other sectors
(C)
5.4.1 Support the Budget Division and Policy Analysis Division to publish the relevant budget documents and fiscal information.
5.4.2 MoF Communication Strategy developed and implemented by June 2013
5.4.3 Develop an action plan to modernise MoF website (structure, content and user friendliness) by June 2015
Revised milestone. Given that the previous milestones (The Approved National Budget is published on Ministry of Finance website by September each year; Publish Citizens Budget by November each year; A Year-End Report (budget out turn) comparing the actual budget execution to the enacted budget is published on Ministry of Finance website by October each year and Fiscal Information and Budget Transparency Publication Cycle developed and implemented by June 2014) are produced by BUDGET and Policy Analysis Divisions, the key milestones have been moved to KRA 2 and a supporting milestone for publication on website maintained for Communication Unit.
Delayed. The draft communication strategy in progress.
On track. TWG discussed with GCU on the development of an interface on PFM as part of website redesign.
.
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Output 5.5:
Coordination and
Standardization of
PFM Training
Achieved.
Number of
trained staff
in PFM
Quality of
service
delivery
from trained
staff.
None
None
........... of staff
trained
Presence of trained
staff providing
quality service.
5.5.1. Training mapping exercise completed by December 2012
5.5.2. Capacity building
Plan developed and result measurement framework shared with key Stakeholders by Feb 2014
5.5.3. An impact assessment of PFM training is conducted to measure staff performance following various trainings by June 2015
On track. Using in-house expertise, ToRs were developed for the mapping exercise and finalized by Dec 2012. The mapping covered all 29 Ministries and selected districts within each region targeting procurement, accounts and planning staff. It started early April 2013 and undertaken by a team of PO-PSM staff, DAHRM officers and other MoF staff. The final report will be ready in first quarter 2013/14 for discussion with stakeholders.
On track. This milestone will be worked out in 2013/14 as the ambition is to come up with training programme after mapping and needs assessment is completed
Pending. Milestone to be revised to reflect the monitoring of the plan and considers other elements as part of feedback process besides undertaking studies, i.e., manager’s assessment of staff performance following training.
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Output 5.6: PFMRP
component
Managers are
being guided by
detailed multi-year
operating plans.
Program
components
are
completed in
sequence
based on
priority and
the reform is
keeping
pace with
the agreed
milestones
PFMRP component
activities are not always
derived from and/or
described within the
context of detailed
component operating plan
Relevance, sequence and
costs are difficult to assess
PFM activities are
governed by multi-
year component
operating plans that
provide context for
relevance, sequence
and cost.
5.6.1. All activities are presented for inclusion in PFMRP annual work plan are presented within the context of a detailed multi-year operating plans annually
On track (rolling activity). The 2012/13 PFMRP Annual Work plan (as well as 5 year provisional work plan) includes activities that are continually verified to be aligned with component operational plans.
Output 5.7: PFM
activities are
effectively planned
and implemented
Component
managers
have
capacity to
develop and
manage
strategic
operational
plans.
Component
managers
have
developed
capacity in
the use RBM
methodolog
Component managers
have not had the
necessary level of capacity
development in strategic
planning and results
based management
150 staff from KRAs
trained on change
management and
strategic planning
.
60 staff trained on
RBM methods
5.7.1. Training on Change Management and Strategic Planning completed by December 2013
5.7.2. Results Based
Management training has been delivered to 60 PFM RP Component managers by June 2013
On track. The Change Management Training was conducted at ESAMI HQ to 150 staff from various MDAs. Meanwhile, 30 Top Management staff from various ministries was trained on the same by ESAMI in Dodoma during Bunge Session in June, 2013. NOTE: Previous milestone 5.7.1. linked to development plan deleted.
Delayed. Training will be conducted in 2013/14
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Output 5.8:
Effective
coordination of
activities and
support provided
to the program
implementers
Secretariat
support is
facilitating
program
performance
.
Under resourced
secretariat with short
term contract
Functional
secretariat providing
a range of needs
based program
supports
5.8.1 Secretariat procurement process completed by July 2012
5.8.2 Secretariat work
plan is completed annually alongside the PFMRP annual work plan
5.8.3 PFMRP coordination secretariat facilitated annually.
On track. M&E specialist recruitment is under way. DPs proposed that given the commendable performance of the current team and the prolonged inconclusive negotiation with PC candidates, a clear decision on the need for the PFM coordinator and PFM advisor posts be made. Discussion was elevated to PST (JSC chair) and it was concluded that the PFM advisor post would be scraped off and current secretariat would be reorganized (Procurement Specialist to take over PC role) and additional relevant support hired. A note will be developed this effect.
On track. For FY2012/13, there was no written work plan as the secretariat is guided by the work plan FY2012/13. For FY2013/14, a secretariat workplan would be developed
On track (rolling activity). The PFMRP Secretariat was facilitated through provision of office equipment, consumables, salaries, computers and office.
Output 5.9: PFM
Program oversight
and review is being
guided by clearly
Performance
expectations
for each
component
Performance expectations
are not clear and the
absence of context makes
qualitative aspects of
Approved M&E
framework sets out
clear and relevant
performance
5.9.1. Annual review and amendment of the M&E framework to ensure ongoing congruence and
On track. Even though the 2012 supervision mission did not thoroughly review the M&E framework, the 2013 supervision used the PEFA
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defined Milestones
derived from an
agreed M&E
framework,
are clearly
defined and
understood
by all
stakeholders
.
program oversight
difficult.
expectations
relevance annually starting November 2012.
2013 results to sharpen the M&E framework. A retreat in Bagamoyo was held to make PEFA follow-up. The results of the retreat were inputs for the review of the M&E framework.
Output 5.10: All
major PFM reforms
have been
coordinated with
and informed by
the relevant
government and
DP stakeholder
groups
Stakeholders
have
knowledge
of reforms
and change
initiatives
that will
impact on
them or
their units
and are
collaboratin
g or
supporting
implementat
ion.
Stakeholders
have
adequate
time to
develop the
Coordination of major
reforms with stakeholder
groups is not prioritized.
Significant information
and capacity gaps exist.
Major PFM reforms
are all supported by a
communication /
collaboration
strategy which
ensures that all
stakeholders have
the opportunity to
provide input and to
receive necessary
information in time
to adapt to the
change.
5.10.1. PFM information session completed to disseminated results of: ICT mapping exercise, ICT Harmonization Integration Plan by March 2013; IAG action plan, ACGEN’s Plan to transition to Accrual Accounting)
5.10.2. Dec.31st each year Minimum of one PFM reform information day conducted for CSOs , DPs and GoT during Public Service day annually
On track. The Information session for the ICT mapping exercise and ICT Harmonization Integration Plan were not carried out due to the delay in the finalisation of the ICT mapping and integration plan. It was agreed that there was a need to harmonize the process with e-government agency plans on ICT integration across government. AcGEN made presentation on IPSAS in Oct 2013 and other presentations were made (PEFA workshop, etc). The secretariat work plan is expected to outline feasible presentations for FY2013/14.
On track. No event held in Dec due to the programme being new but the PFM information session is planned to take place with before December 2013. The ambition s to conduct during annual policy week or GBS review.
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necessary
adaptive
capacity.
Change
resistance is
minimized
Output 5.11:
PFMRP
implemented
efficiently and
effectively through
result based
management
approach.
Comprehensi
ve annual
work plan
and budget
Progress
report on
place on
15th day
after end of
quarter
Strong and
effective
dialogue
structure
Approved by August
annually
Progress report in place
Weak dialogue structure
Work plans and
budgets are approve
by June annually
Funds are released by
July 1/annually
Periodic report
prepared quarterly
Presence of strong
and effective
dialogue structure as
per MoU.
5.11.1. PFMRP implemented according to annual work plan and milestones are being met
5.11.2. Annual supervision
mission are conducted by Sept 30 of each year commencing 2012
5.11.3. Independent program evaluations are completed towards end 2014/2015
5.11.4. Dialogue structures are working as evidenced by combined DP/GoT surveys/independent evaluations to ensure effective
On track (rolling). The PFMRP Annual work plan was implemented as per the plan with some areas suffering some delays.
On track (rolling). The 2012 Supervision Mission was carried out successfully and the program rated as Satisfactory.
On track. It was agreed to undertake a mid-term evaluation towards the end of 2014/15.
On track – within reach. The dialogue has been on-going and working as required within the PFMRP structure. It was agreed to look at this during the independent evaluation and combine it with Surveys to
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Number of
coordinated
dialogue
meeting
6 meeting
Working Group and
Joint Steering
Committee meetings
are attended by KRAs
decision makers
KRA teams are
meeting monthly
schedule.
Donor
representatives are
well informed on
reform initiatives.
program implementation.
ensure that teams (KRA Teams and JSC members)are actually working completed (previous milestone 5.11.5 deleted).
Output 5.12:
National systems
and processes for
intergovernmental
transfers to LGAs
Streamlined and
rationalized
System and processes are documented with target timelines for each process step.
No overall view of systems
and processes for
intergovernmental
transfers. Flow of funds
and information on the
same is not in parallel and
tied to one system.
Effectiveness and
efficiency of the
system has increased
X XX Number of key
actions implemented
5.12.1. TORs (for Streamlining and rationalizing National systems and processes for intergovernmental transfers to LGAs) completed by July 2012.
5.12.2. Mapping
commences
Achieved. The ToR were developed and the consultant (TANSCOTT) procured to undertake the study.
Achieved. The mapping exercise commenced with an
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Share of Non-salary (OC+DEV) funds released to RSs and LGAs by end Q3, as percentage of the Resources budgeted and available (OC+DEV) for the year
In 2010 it took 7days for
funds to reach MDAs and
RSs (after receipt of
complete set of fund
request).
42.1% of resources
available to RSs and LGAs
at Q3
(Target to be set
after mapping
exercise)
Decreased number of
days of fund transfer
time to RSs LGAs and
MDAs
70% of resources
available to RSs and
LGAs at Q3by 2014
September 2012.
5.12.3. Review and
mapping of the systems and processes for intergovernmental transfers initiated with inception report finalised by October 2012
5.12.4. Comprehensive and
sequenced action plan on a recommendation of the mapping exercises on the intergovernmental transfers finalized by June 2013.
5.12.5. Reports to be
produced annually by end September.
inception report submitted in Feb 2013 and a draft report submitted in June 2013. Stakeholders will meet in Sept/Oct to discuss the way forward on the recommendations in view of 5.12.4
On track. Stakeholders will meet in Sept/Oct to discuss the way forward on the recommendations in view of 5.12.4. A technical meeting will be followed by a senior GoT officials meeting for final decision so a costed action plan can be finalised.Target date: 3
rd quarter 2013.
Delayed. Pending above process.
Pending. Reports to be produced following the implementation of the action plan starting Sept 2014
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Output 5.13:
Strengthened
Public Financial
Management
Reforms in
Zanzibar by 2016
5.13.1. Support to jointly (DPs, ZNZ and MoF) agreed Strategic plan on PFM reform in Zanzibar
Delayed. Joint DP discussions with Zanzibar and MoF draw the conclusion that as Zanzibar is preparing its 3 year PFM strategic plans (following a comprehensive evaluation of PFM and support on PFM from Norway, among others), this would be the basis for PFMRPIV support in lieu of preparing a new strategy. Once joint DP, MoF and ZNZ agreement is made. The joint DP discussions would include DPs that are actively supporting PFM reforms in Znz: IMF EAST AFRTIAC, Norway, UNDP and USAID. The previous milestones are now merged.
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ANNEX B: CHANGES TO PFMRPIV MILESTONE MATRIX BASED ON PEFA 2013 FINDINGS
Sl. No.
PEFA 2013 Findings Changes to PFMRPIV Milestone Matrix
Under KRA 1 – Revenue Management
1. Improve revenue forecasting and revenue out-turn
No changes suggested. Already addressed in PFMRPIV under Output 1.1 and Output 1.2
2. Review and limit tax exemptions No changes suggested. Study on tax exemptions by PER Secretariat will inform GoT policy. PFMRPIV currently provides support for enactment of Tax Administration Act as well as amendment to the VAT Act.
3. Strengthen enforcement on tax registration
No changes suggested. Support to TRA being provided by DPs through a separate basket fund.
4. Continue to improve use of country systems by donors
No changes suggested. Already being addressed in PFMRPIV under Output 1.4.
Under KRA 2 – Planning & Budgeting
1. Improve Budget Credibility – Minimise deviations in Aggregate Out-turn and Composition Variance
Two new milestones have been agreed on budget credibility under Output 2.2.
- Budget reallocation warrants published by September every year.
- Government approves actions for improving budget credibility based on a review of reallocation warrants in the past four years - by June 2014
2. Need to improve budget transparency and access to key fiscal information
A new output has also been agreed focussing on quality and comprehensiveness of budget documentation as well as public access to key fiscal information (shifted from KRA 5.4). Three new additional milestones have been agreed. 1. Public Access to key fiscal information: Timely publication
of key fiscal information as listed below: a. Budget guidelines published by December every year b. Executive budget proposal (Vol. I to IV) as submitted to Parliament
published by June every year c. Approved budget (all volumes) published by September every year d. Quarterly budget execution report published within a month after
end of quarter. e. Year-end budget execution report published by October every year f. Citizen’s budget published by November every year
2. Action plan for improving quality and comprehensiveness of budget documentation based on PEFA assessment developed – by December 2013
3. Changes in quality and comprehensiveness of budget documentation reflected in 2014-15 budget documentation
3. Quality and Comprehensiveness of Budget Documentation – many areas of improvement
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Sl. No.
PEFA 2013 Findings Changes to PFMRPIV Milestone Matrix
4. Improve quality of Medium-Term Planning
No changes suggested. Already addressed in PFMRPIV under Output 2.1 and Output 2.2
Under KRA 3 – Budgeting Execution
1. Strengthen monitoring of payment arrears
Under Output 3.3, new milestone will be included for monthly report on payment arrears to be provided to the cash ceiling committee by ACGEN. This is also being addressed by IAGD under KRA 4 as well as under KRA 5 through training on EPICOR.
2. Improve commitment controls under EPICOR
3. Improve cash flow forecasting / cash management unit and Review system of cash rationing
4. Financial reporting by economic classification, by sectors
Under Output 3.3, new milestone will be included for ACGEN to compile and produce financial statements disaggregated on the basis of economic classification and by sectors
5. Enable closure of commercial bank accounts
No changes suggested. ACGEN already has dedicated team working on this issue.
6. Better management of imprests
No changes suggested. Seen primarily as an issue in LGAs, but there has been significant improvement through EPICOR..
7. Strengthen Debt Management
New milestone under Output 4.4 will help monitor contingent liabilities and account for the risk stemming from guarantees granted by GOT to PA&OBs and from PPP financed projects. An additional milestone is proposed to ensure quarterly reporting and publication of public debt. The programme also provides support for strengthening the Office of the Treasury Registrar to exercise oversight over PA&OBs.
8. Assess fiscal risk posed by PA&OBs - Monitoring guarantees and commitments under PPPs
9. Establish a single Debt Management Office
No changes suggested. This is already included under Output 3.4
10. Continue to monitor compliance with benchmarks
No changes suggested. These are already included under Output 3.1 and 3.2
11. Notify amended PPA 2011
12. Enhance transparency in public procurement
Under KRA 4 – Budgeting Control and Oversight
1. Improve adherence to financial regulations and controls - Continue to monitor compliance with IA benchmarks
IAGD undertakes compliance audit annually. A new milestone under Output 4.1 is suggested for IAGD to monitor implementation of corrective actions by MDAs/LGAs on a quarterly basis
2. Ensure corrective measures in response to audit findings are taken
A new milestone to be incorporated under Output 4.1 to enable IAGD to monitor and follow-up on CAG recommendations
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Sl. No.
PEFA 2013 Findings Changes to PFMRPIV Milestone Matrix
3. Ensure timely and effective management response to audit reports
This was considered beyond the immediate scope of the programme. However, this issue can be influenced by engaging with Parliamentary Audit Committees.
4. Strengthen CAG capacity to monitor audit compliance
No changes suggested. This is already included under Output 4.2.
5. Strengthen capacity of Parliamentary Audit Committees to review and report on CAG reports in a timely manner
No changes suggested. This is already included under Output 4.5
The PFMRPIV programme has attempted to amend its activities in line with the findings of the PEFA Report 2013 as best as it can. However, it must be mentioned that some of the areas of improvement will need concerted action by stakeholders other than the Ministry of Finance. These involve PFM reform areas such as overall budget credibility, legal/policy changes, follow-up on audit recommendations etc. on which a wider set of stakeholders need to be engaged including MDAs, higher administrative authorities, political executive and Parliament.
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ANNEX C: CHANGES TO PFMRPIV MILESTONE MATRIX FOLLOWING JOINT SUPERVISION MISSION 2013
Rationale for Change
Previous output/ milestone
Revision - SEPT 2013
PEFA 2013 finding Other (TWG)
KRA 1 – Revenue Management
. OUTPUT 1.1
The PAD TWG saw the need
to formulate a more concrete
milestone and as the
recommendations of the
study are expected to inform
the budget preparations for
budget 2015/16, the
milestone 1.1.2 was merged
into the revised milestone.
1.1.1 Study on forecasting targets and actual revenue collection by June 2013
NEW milestone combing the previous 1.1.1 and 1.1.2: 1.1.1. Undertake a study to identify
ways of improving tax revenue forecast and an action plan by June 2014
1.1.2 Recommendations from study on forecasting targets and actual revenue collection informs budget preparations for budget 2014/15.
Milestone merged as above in 1.1.1
OUTPUT 1.2 The PAD TWG noted that
given the change in the
parliamentary calendar, it will
not be possible to table the
Bill in the Oct/Nov
constitutional parliament
session. The Bill is only likely
to be tabled in Feb 2014.
1.2.2. Submission of a bill to Parliament to enact Tax Administration Act for the purpose of establishing a common tax procedure among different taxes collected by Tanzania revenue authority (TRA) by Nov 2013
Revised target date 1.2.4. Submission of a bill to Parliament to enact Tax Administration Act for the purpose of establishing a common tax procedure among different taxes collected by Tanzania revenue authority (TRA) by Feb 2014
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Rationale for Change
Previous output/ milestone
Revision - SEPT 2013
PEFA 2013 finding Other (TWG)
The PAD TWG agreed that there was need for the milestone to be revised as two milestones are involved in the current formulation. A new milestone is also formulated and both milestones should be renumbered next to the non-tax study.
1.2.5 The action plan to implement the recommendations from review of non tax collection developed and implemented by 2016
Revised milestone (text and renumbering):
1.2.2. Action plan to implement the recommendations from review of non-tax collection developed by June 2014
N/A NEW milestone: 1.2.3. Costed action plan incorporated in FY2015/16 for implementation.
The MNRT TWG noted that due to change in forestry department moving to a separate agency, this milestone needs to be corrected as revenue collection by LGAs was linked to the forestry sector.
1.2.6 Computerised revenue collection to at least 50% of participating MDAs and LGAs by 2016
Revised milestone (text and renumbering): 1.2.7 Computerized revenue collection to at least 50% from MNRT by 2016
The TR Bill is expected to be submitted to parliament in 1st semester 2014 as the draft bill will mostly likely be submitted to Cabinet in Nov/Dec 2013 for Cabinet. Further, The TR TWG agreed to cover all TR related output and milestones under KRA 4, Output 4.4
1.2.7. New TR's Bill presented to the Parliament by June 2013
Milestone target date changed and subsequently moved to KRA 4 output 4.4 (as milestone 4.4.5 ) 4.4.4. New TR's Bill presented to the Parliament by June 2014
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Rationale for Change
Previous output/ milestone
Revision - SEPT 2013
PEFA 2013 finding Other (TWG)
The TR TWG agreed to cover
all TR related output and
milestones under KRA 4,
Output 4.4
1.2.8. 150 Parastatals’ Acts Reviewed to be in line with the New TR Act by June 2014
Milestone moved to KRA 4 output 4.4 (as
milestone 4.4.5 )
1.2.9. TR’s Office Capacities enhanced by June 2014
Milestone moved to KRA 4 output 4.4 (as
milestone 4.4.6 )
The TR TWG recommended that TR reviews this milestone together with milestone on 4.4.3 “Monitoring framework for Parastatals set up by June 2014” and4.4.4.4 “Mechanism for measuring Parastatals’ compliance rate developed by June 2014” under KRA 4 below as these three milestones seem to refer to the same monitoring framework/M&E system. Further, The TR TWG agreed to cover all TR related output and milestones under KRA 4, Output 4.4.
1.2.10. M& E system for Parastatals reviewed and implemented by June 2015
Milestone merged with previous 4.4.3 and
4.4.4 and moved to KRA 4 under output
4.4 as milestone 4.4.3.
4.4.3. M&E mechanism for measuring
Parastatals compliance rate set up, reviewed
and implemented by June 2015
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Rationale for Change
Previous output/ milestone
Revision - SEPT 2013
PEFA 2013 finding Other (TWG)
OUTPUT 1.3
Given that the exercise was undertaken in-house and more time was needed to analyse the inputs from the field assignment, the PMORALG TWG agreed to move the target date to June 2014.
1.3.1. Completed assessment and evaluation of revenue potential for all major own sources of revenue to all LGAs by June 2013
Revised target date: 1.3.1. Completed assessment and evaluation of revenue potential for all major own sources of revenue to all LGAs by June 2014
The PMORALG TWG agreed to
move the target date to June
2014 and for the sequencing in
the framework: teaching
modules to precede the actual
training.
1.3.2 PMO - RALG staff and Finance Management Officers at RS are trained in tax revenue plans and budgets to spearhead LGAs tax reviews and reforms by June 2013
Revised target date and sequencing: 1.3.2 Local Authorities Tax administration teaching and practice modules established and TOT completed for all finance management staff at the regional levels by June 2014
1.3.3 Local Authorities Tax administration teaching and practice modules established and TOT completed for all finance management staff at the regional levels by June 2013
Revised target date: 1.3.3 PMO - RALG staff and Finance Management Officers at RS are trained in tax revenue plans and budgets to spearhead LGAs tax reviews and reforms by June 2014
The PMORALG TWG agreed to
move the target date to June
2015 given the various actions
that may need to be undertaken
before the full operationalisation
of database and knowledge
management
1.3.5. Establishment of known and clear revenue data base by each source of revenue, presence of trained personnel and a clear follow up arrangement at PMORALG and RS levels by June, 2014
Revised target date:
1.3.5. Establishment of known and clear revenue data base by each source of revenue, presence of trained personnel and a clear follow up arrangement at PMORALG and RS levels by June, 2015
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Rationale for Change
Previous output/ milestone
Revision - SEPT 2013
PEFA 2013 finding Other (TWG)
Given the delay in the study and
the need for a number of
intermediate steps to be
completed, the PMORALG TWG
agreed to move the study target
date to June 2014 and the Bill to
Nov 2014.
1.3.6 Completed study on the effectiveness, relevancy and sufficiency of the provisions of the Local Government Finances Act No. 9 by June, 2013
Revised target date: 1.3.6 Completed study on the
effectiveness, relevancy and sufficiency of the provisions of the Local Government Finances Act No. 9 by June, 2014
1.3.7. A bill for an act to amend the Local Government Finances Act No.9 of 1982 is finalized and submitted to the Cabinet by June 2014
Revised target date: 1.3.7. A bill for an act to amend the Local Government Finances Act No.9 of 1982 is finalized and submitted to the Cabinet by Nov 2014
New milestone that already
exists in FY2013/14 budget
under KRA 5 for ACGEN but
has not been included on
milestone table. ACGEN
requested that the milestone
and its activities is moved to
PMORALG.
N/A New milestone (already budget in FY2013/14): 1.3.8: Improvement of Financial Management in LGAs by June 2015
OUTPUT 1.4 The roadmap to move DCF
approval forward includes
important consultantive process
across GoT, ZNZ and
stakeholders (NSA, DPs, etc).
As such, the final doc is
1.4.1. National framework for managing development cooperation (JAST) be reviewed and put in operation by December 2012
Revised milestone (text and target date) 1.4.1. National framework for managing development co-operation (Development Cooperation Framework, DCF) reviewed, disseminated and put in operation by March 2014
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Rationale for Change
Previous output/ milestone
Revision - SEPT 2013
PEFA 2013 finding Other (TWG)
expected to be sent to
parliament (4 selected
committees) and cabinet paper
approval with launch expected
Nov/Dec 2013. The EFD TWG
discussed the potential delays
and readjusted the milestone
date to March 2014
The EFD TWG agreed to
adjust the milestone to reflect
the situation. The Further, the
milestone was revised to
relate only to AMP guidelines
and not revised JAST (DCF)
guidelines.
1.4.2. Revised JAST and AMP user guideline clearly communicated to both parties by December 2012
Revised milestone (text and target date) 1.4.2. Revised AMP user guidelines clearly communicated to both parties by Dec 2014
KRA 2: Budgeting and Planning
OUTPUT 2.1 PBB will be implemented in a stepwise fashion starting with a number of Pilot ministries and then move to other MDAs, regions and LGAs. The BUDGET TWG agreed that all MDAs and LGAs to be compatible by September
2.1.3. MTEF reviewed to make program based budget compatible by September 2014
Revised target date: 2.1.3. MTEF reviewed to make program based budget compatible by September 2016
112
Rationale for Change
Previous output/ milestone
Revision - SEPT 2013
PEFA 2013 finding Other (TWG)
2016.
The BUDGET TWG agreed to move the timelines for the completed phased training of all MDAs and LGAs to September 2016 but with a continuous follow-up of the roll-out.
2.1.5 Completed phased training for all MDAs and RSs by 2014
Revised target date 2.1.5. Completed phased training for all MDAs and RSs by Sept 2016
2.1.6 Completed phased training for all LGAs by 2014
Revised target date 2.1.6. Completed phased training for all LGAs by Sept 2016
OUTPUT 2.2
The BUDGET TWG agreed to change target date to xxx given that MTSPBM is planned to be reviewed this financial year (2013/2014) and it requires joint work with the Planning Commissioner. Further, the mission agreed that milestones 2.2.1 + 2.2.2 + 2.2.3 need to be reformulated and/or new timelines provided. BUDGET to advise.
2.2.1. MTSPBM reviewed by xxx Revised target date 2.2.1 MTSPBM reviewed by xxx
The mission agreed that milestones 2.2.1 + 2.2.2 + 2.2.3 need to be reformulated and/or new timelines provided. BUDGET to advise.
2.2.2. Sixty MDAs, 21 RSs and 133 LGA trained in MTSPBM by June 2014
Revised milestone:
The mission agreed that milestones 2.2.1 + 2.2.2 + 2.2.3 need to be reformulated and/or new timelines provided.
2.2.3. Reviewed MTSPBM to be applied during FY 2013/14
Revised milestone:
113
Rationale for Change
Previous output/ milestone
Revision - SEPT 2013
PEFA 2013 finding Other (TWG)
BUDGET to advise.
The TWG agreed to set a feasible date for completion of training.
2.2.7. Phased training to MDAs, RSs and LGAs Budget Committees on resource prioritization and planning
Revised milestone:
The TWG agreed to adjust the milestone with regard to clarifying the term quality assurance.
2.2.8. Mechanism for quality assurance of Quarterly Budget Performance Reports (level of detail, timeliness, accuracy, consistency and usefulness to decision makers, as well as for budget transparency to citizens) established by June 2013
Revised milestone:
The BUDGET TWG noted that while the Review of the Public Finance Act is under process but the parliamentary focus on the Constitution is likely to further delay it. The mission recommends that Budget advises on a feasible target date.
2.2.5. Action plan on implementation of recommendations on budget legal framework completed by June 2013
Revised target date: 2.2.5. Action plan on implementation of recommendations on budget legal framework completed by xxx
Improve Budget Credibility – Minimise deviations in Aggregate Out-turn and Composition Variance
N/A NEW milestone under Output 2.2. 2.2.9 Budget reallocation warrants published by September every year.
114
Rationale for Change
Previous output/ milestone
Revision - SEPT 2013
PEFA 2013 finding Other (TWG)
N/A NEW milestone under Output 2.2. 2.2.10. Government approves actions
for improving budget credibility based on a review of reallocation warrants in the past four years - by June 2014
OUTPUT 2.3
The BUDGET TWG agreed for timeline of the milestone to be shifted to January 2014 given the significant delays in the review of the LGAs budget allocation formulas. The BUDGET TWG agreed for timeline of the milestone to be shifted to June 2014 given the significant delays in the review of the LGAs budget allocation formulas
2.3.2. Recommendations of various studies on LGAs budget allocation formulas reviewed by December 2012
Revised target date: 2.3.2. Recommendations of various studies on LGAs budget allocation formulas reviewed by January 2014.
2.3.3. Agreement on improvement of LGAs budget allocation formulas among the Sector Ministries (PMO-RALG, MOF, PO-PSM and Sectors) completed by Dec 2012
Revised target date: 2.3.3. Agreement on improvement of LGAs budget allocation formulas among the Sector Ministries (PMO-RALG, MOF, PO-PSM and Sectors) completed by June, 2014
NEW OUTPUT 2.4
Quality and comprehensiveness
New output under KRA 2 is required to address PEFA finding on the need for: Quality and
N/A
NEW milestone under new OUTPUT 2.4 2.4.1 Public Access to key fiscal
information: Timely publication of key fiscal information as listed below: a. Budget guidelines published
by December every year b. Executive budget proposal
115
Rationale for Change
Previous output/ milestone
Revision - SEPT 2013
PEFA 2013 finding Other (TWG)
of budget documentation as
well as public access to key fiscal information
comprehensiveness of budget documentation as well as public access to key fiscal information (shifted from KRA 5.4)
(Vol. I to IV) as submitted to Parliament published by June every year
c. Approved budget (all volumes) published by September every year
d. Quarterly budget execution report published within a month after end of quarter.
e. Year-end budget execution report published by October every year
f. Citizen’s budget published by November every year
NEW milestone under new OUTPUT 2.4
2.4.2 Action plan for improving quality and comprehensiveness of budget documentation based on PEFA assessment developed – by December 2013
NEW milestone under new OUTPUT 2.4
2.4.3 Changes in quality and comprehensiveness of budget documentation reflected in 2014-15 budget documentation
KRA 3: Budgeting Execution, Accountability and Transparency
116
Rationale for Change
Previous output/ milestone
Revision - SEPT 2013
PEFA 2013 finding Other (TWG)
OUTPUT 3.1
The mission recommended that all 11 (3.1.1 to 3.1.11) milestones related to procurement oversight (PPRA) under Output 3.1 to be moved to KRA 4 as output 4.6
3.1.1. Annual PPRA audit results confirm positive trend on a yearly basis
Milestone moved to KRA 4, Output 4.6 as milestone 4.6.1
The mission recommended that all 11 (3.1.1 to 3.1.11) milestones related to procurement oversight (PPRA) under Output 3.1 to be moved to KRA 4 as output 4.6. The PPRA TWG agreed adjusted date> March 2014.
3.1.2 Revised procurement
implementation and monitoring tools issued by December 2013
Milestone moved to KRA 4, output 4.6 and revised target date: 4.6.2. Revised procurement
implementation and monitoring tools issued by March 2014
The mission recommended that all 11 (3.1.1 to 3.1.11) milestones related to procurement oversight (PPRA) under Output 3.1 to be moved to
3.1.3 New Public Procurement Act, 2011, Regulations and Tools disseminated to major PEs and other key stakeholders by December 2015
Milestone moved to KRA 4, Output 4.6 as milestone 4.6.3
3.1.4 Procurement plans aligned with MDAs, LGAs and parastatal Institution Strategic plans by June 2015
Milestone moved to KRA 4, Output 4.6 as milestone 4.6.4
117
Rationale for Change
Previous output/ milestone
Revision - SEPT 2013
PEFA 2013 finding Other (TWG)
KRA 4 as output 4.6 3.1.5 Value for money procurement enhanced through Framework contract in procurement of common use items and services by June 2017
Milestone moved to KRA 4, Output 4.6 as milestone 4.6.5
3.1.6 PPRA operational and outreach capacity strengthened by June 2014
Milestone moved to KRA 4, Output 4.6 as milestone 4.6.6
3.1.7 All (393) PEs will have a fully functional PMIS as a reporting tool for procuring entities to report back to PPRA by Nov 2014
Milestone moved to KRA 4, Output 4.6 as milestone 4.6.7
3.1.8 e-procurement will start functioning as pilot stage by Nov 2016
Milestone moved to KRA 4, Output 4.6 as milestone 4.6.8
The PPRA TWG recommended that milestone should be redefined to reflect an annual rate of completion of one-third of all enterprises (current total: 434).
3.1.9 393 PEs audited by June 2012
Milestone revised and moved to KRA 4, Output 4.6 as milestone 4.6.9: 4.6.9. Completion of audits of one-third of all PEs annually (current total PEs: 493)
The mission recommended that all 11 (3.1.1 to 3.1.11) milestones related to procurement oversight (PPRA) under Output 3.1 to be moved to KRA 4 as output 4.6
3.1.10 Follow up audit of 100 PEs to be done annually by 2016
Milestone moved to KRA 4, Output 4.6 as milestone 4.6.10
3.1.11 Annual Procurement Performance Evaluation Report prepared and published Annually
Milestone moved to KRA 4, Output 4.6 as milestone 4.6.11
118
Rationale for Change
Previous output/ milestone
Revision - SEPT 2013
PEFA 2013 finding Other (TWG)
OUTPUT 3.2 The PPRA and PPPD TWGs agreed to revise the timeline for the action plan to be developed. PPPD to advise after meeting with PPRA.
3.2.1. Action Plan for implementing Public Procurement Act is developed by December 2012 (Milestone to be revised after finalization of action plan)
Revised target date and numbering: 3.1.1. Action Plan for implementing Public Procurement Act is developed by Dec 2014
The PPPD TWG agreed to adjust the timeline to Dec 2014 given that ToRs for MDA (phase II) have only recently been finalised. Reports on the LGAs (phase I) are under preparation.
3.2.3 Procurement training needs
assessment exercise completed by
June, 2013
Revised target date and numbering:
3.1.3 Procurement training needs
assessment exercise completed by Dec
2014
Given the move of the previous output 3.1. under PPRA to KRA4, the following milestones (as above have been renumbered)
3.2.4. [300] procurement staff
trained on public procurement by
June, 2017 as per TNA
Milestone renumbered as milestone 3.1.4
The PPPD TWG agreed to amend the milestone to provide the correct understanding of the milestone.
3.2.5. Strategy on public procurement human resource developed and disseminated by June, 2015
Revised milestone (text and numbering):
3.1.5 Strategy to develop Procurement
Management Unit (PMU) structures in
Public Sector by June, 2015
119
Rationale for Change
Previous output/ milestone
Revision - SEPT 2013
PEFA 2013 finding Other (TWG)
Given the move of the previous output 3.1. under PPRA to KRA4, the following milestones (as above have been renumbered)
3.2.6. Procurement and supplies staff
database maintained and updated by
December, 2015
Milestone renumbered as milestone 3.1.6
Given the move of the previous output 3.1. under PPRA to KRA4, the following milestones (as above have been renumbered)
3.2.7. National procurement policy
draft finalized by June, 2013
Revised target date and numbering
3.1.7 National procurement policy
draft finalized by Dec 2014
The PPPD TWG agreed to adjust the timeline. PPPD to advise possible finalisation of pending implementation plan to accompany the Cabinet submission.
3.2.8. Stakeholders’ comments
incorporated by June, 2013
Milestone renumbered as milestone 3.1.8
The PPPD TWG agreed to adjust the timeline in line with feasible training.
3.2.9. PPDs' office and staff capacity enhanced by June, 2013
Revised target date and numbering 3.1.9. PPDs' office and staff capacity
enhanced by June 2017
Given the move of the previous output 3.1. under PPRA to KRA4, the following milestones (as above and below) have been renumbered.
3.2.10 Twenty (20) members of PPPD
staff equipped with skills on
public policy formulation,
implementation and evaluation
by June, 2014
3.2.11 National procurement policy
developed and shared by
December, 2014
3.2.12 National procurement policy
Milestone renumbered as milestones 3.1.10 to
3.1.17.
120
Rationale for Change
Previous output/ milestone
Revision - SEPT 2013
PEFA 2013 finding Other (TWG)
strategy developed and implemented by June 2015
3.2.13 Printing and uploading the NPP
on the website by June, 2015
3.2.14 National procurement policy and
procurement law synchronised
by June, 2015
3.2.15 Monitoring the implementation
of the National procurement
policy by June, 2015
3.2.16 Evaluation and feedback of the
implementation of the National
procurement policy by June,
2016
3.2.17 1000 Stakeholders acquainted
with the National procurement
Policy by June, 2016
OUTPUT 3.2 (former 3.3)
Cash Management
The ACGEN TWG agreed to adjust the timeline given the large number to be trained. The milestone also needs to be renumbered.
3.3.1 600 staff of MDAs Trained on cash Management using standardized materials by June 30 2014
Revised target date and numbering: 3.2.1. 600 staff of MDAs Trained on cash Management using standardized materials by June 2015
Given the move of the previous output 3.1. under PPRA to KRA4, the milestone (as above and below) have been renumbered
3.3.2. Six bank accounts operated by each LGAs by December 2013
Revised numbering as milestone 3.2.2
121
Rationale for Change
Previous output/ milestone
Revision - SEPT 2013
PEFA 2013 finding Other (TWG)
Strengthen monitoring of payment arrears
N/A New milestone Under Output 3.2: 3.2.3. ACGEN to present a monthly report on payment arrears to ceiling committee effective Dec 2013
OUTPUT 3.3 Debt Management
(former 3.4)
Given the move of the previous output 3.1. under PPRA to KRA4, the milestone (as above and below) have been renumbered
3.4.1. The agreed actions arising from the Feb. 2012 World Bank debt management report shared with key stakeholders by July 31, 2012 (Milestones to be reviewed)
Revised numbering as milestone 3.3.1
The PAD Debt management TWG agreed to adjust the milestone in line with plans to complete the DSA which will feed the Public Debt Management (PDM) strategy.
3.4.2. Debt management policy developed and shared by June 2013
Revised target date and numbering: 3.3.2. Debt management policy developed and shared by June 2014
The PEFA report recommended the need to revise the current milestones on public debt management to account specifically for the fiscal risks posed by contingent liabilities.
The TWG agreed to emphasise for the DSA on external, domestic debt and contingent liabilities to be undertaken. The milestone is also renumbered.
3.4.3. Capacity of 50 Public Debt staffs enhanced by June 2014
Revised text and numbering: 3.3.3 Capacity of 50 Public Debt management staff enhanced to undertake DSA on external, domestic debt and contingent liabilities by June 2014.
The TWG agreed to rephrase the milestone to show that the MoF would make all relevant efforts to submit to Cabinet by June 2014. The milestone is renumbered.
3.4.4. Review of Government Loans, Guarantees and Grants Act by June 2014
Revised text and numbering: 3.3.4. Reviewed Government Loans, Guarantees and Grants Act submitted to the Cabinet by June 2014.
122
Rationale for Change
Previous output/ milestone
Revision - SEPT 2013
PEFA 2013 finding Other (TWG)
3.4.5. Debt Management department established by June 2016
Revised target date and numbered as 3.3.5
MOF continues with the publication of its quarterly detailed report on public debt that should disclose on its website information on both domestic and external debt, all outstanding loans guarantees granted by the GOT, all liabilities of those PA&OBs owned by the GOT, and outstanding borrowings by PA&OBs from the Public Pension Funds with GOT guarantee.
N/A New milestone under output 3.3: 3.3.9. Quarterly monitoring of contingent
liabilities of PA&OBs
Assess fiscal risk posed by PA&OBs - Monitoring guarantees and commitments under PPPs
N/A New milestone under output 3.3: 3.3.7. Annual monitoring of guarantees approved by GoT for PA&OBs and for PPP financed projects
Strengthen Debt Management
N/A New milestone under output 3.3: 3.3.8. Detailed and quarterly debt report prepared and published.
123
Rationale for Change
Previous output/ milestone
Revision - SEPT 2013
PEFA 2013 finding Other (TWG)
OUTPUT 3.4 (former 3.5)
Migration towards IPSAS ACCRUAL
The TWG ACGEN was not clear
on if the review is related to the
financial statement as there is
no IPSAS guideline issued by
PMORALG or if the milestone
relates to the need for the
accounting manual or template.
It was suggested that
PMORALG handles this
milestone and it is rephrased.
The milestone is renumbered.
3.5.1. Completed review of the IPSAS guideline issued by PMORALG in 2008/09 to accommodate the recent IPSAS updates by June 2013
Revised target date, text and numbering: 3.4.1. Completed review of the IPSAS guideline issued by PMORALG in 2008/09 to accommodate the recent IPSAS updates by June 2013
The TWG agreed to shift the target date to complete training to end FY 2013/14. The milestone is renumbered.
3.5.2. Training to the MDAs, RSs and LGAs accounting officers to develop awareness on IPSAS Accrual by 2013
Revised target date, text and numbering 3.4.2. Training to the MDAs, RSs and
LGAs accounting officers to develop awareness on IPSAS Accrual by June 2014.
Given the move of the previous output 3.1. under PPRA to KRA4, the milestone (as above and below) have been renumbered
3.5.3. Capacity building to 250 staffs from MDAs, RSs and embassies to enhance skills in IPSAS Accrual by 2014.
Revised numbering as milestone 3.4.3
Given the move of the previous output 3.1. under PPRA to KRA4, the milestone (as above and below) have been renumbered
3.5.4. Public Finance Act.No.6 of 2001 and regulations reviewed by 2016
Revised numbering as milestone 3.4.4
124
Rationale for Change
Previous output/ milestone
Revision - SEPT 2013
PEFA 2013 finding Other (TWG)
Given the move of the previous output 3.1. under PPRA to KRA4, the milestone (as above and below) have been renumbered
3.5.5. Consolidated template of financial statements to include MDAs, Rs, LGAs, Controlled entities &GBEs developed by 2016
Revised numbering as milestone 3.4.5
Given the move of the previous output 3.1. under PPRA to KRA4, the milestone (as above and below) have been renumbered
3.5.6. 250 government accountants in MDAs /LGAs trained in IPSAS accrual and accrual modules for Epicor by September 2013
Revised numbering as milestone 3.4.6
Given the move of the previous output 3.1. under PPRA to KRA4, the milestone (as above and below) have been renumbered
3.5.7. Plan for migration towards IPSAS Accrual accounting is completed by December 2013.
Revised numbering as milestone 3.4.7
Given the move of the previous output 3.1. under PPRA to KRA4, the milestone (as above and below) have been renumbered
3.5.8. Plan is approved for execution and stakeholder information sessions have been completed by January 2014
Revised numbering as milestone 3.4.8
Given the move of the previous output 3.1. under PPRA to KRA4, the milestone (as above and below) have been renumbered
3.5.9. All legislative and policy supports decisions have been identified by December 2014
Revised numbering as milestone 3.4.9
Given the move of the previous output 3.1. under PPRA to KRA4, the milestone (as above and below) have been renumbered
3.5.10. Milestones for the transition have been identified and approved Eg Public Finance Act No.2001 and Regulations amendments by October 2014
Revised numbering as milestone 3.4.10
125
Rationale for Change
Previous output/ milestone
Revision - SEPT 2013
PEFA 2013 finding Other (TWG)
As the TWG noted, the Government (Central) is migrating to accrual basis of accounting before considering moving in centralized IPSAS Accrual architecture with all stakeholders. Plan is that by 2017, to be compliant with consolidation.
3.5.11. Plan to integrate all RSs and LGAs operations into the centralized IPSAS accrual architecture is completed and PMO RALG is fully engaged as a stakeholder by December 2014
Revised text and numbering: 3.4.11. Consolidated accounts with IPSAS Accrual by June 2017.
Accurate Financial reporting by economic classification, by sectors
N/A New milestone under Output 3.4 as: 3.4.12. ACGEN to compile and produce financial statements disaggregated on the basis of economic classification and by sectors
OUTPUT 3.5 (former 3.6)
Asset management
The GAMD TWD revised the milestone target to reflect the GMAD action plan targets. The milestone is also renumbered.
3.6.1. Uploading of 16 additional MDAs in EPICOR by December 2012
Revised text and numbering: 3.5.1. Uploading of 70 additional MDAs in EPICOR by June 2017
The GAMD TWG revised the milestone to include testing of software and training of users. The milestone is also renumbered
3.6.2. Asset Management (tracking) software acquired by March 2013
Revised text and numbering 3.5.2. Asset Management (tracking)
software installed, tested and users are trained on use of software by June 2014.
The GAMD TWG revised the milestone to broaden the scope of capacity building implied. The milestone is also renumbered.
3.6.3. 40 staff (25 regional heads (RSVs) and 15 from HQ)) trained on asset management by December 2013
Revised text and numbering 3.5.3. GAM capacity enhanced on asset
management function by June 2016.
126
Rationale for Change
Previous output/ milestone
Revision - SEPT 2013
PEFA 2013 finding Other (TWG)
Given the move of the previous output 3.1. under PPRA to KRA4, the milestone (as above and below) have been renumbered
3.6.4. Asset Management Policy
prepared and submitted by June 2015
Revised numbering as milestone 3.5.4
Given the move of the previous output 3.1. under PPRA to KRA4, the milestone (as above and below) have been renumbered
3.6.5. Valuation of Government assets in 34 MDAs and RSs completed by June 2016
Revised text and numbering 3.5.5.Valuation of Government assets in 34 MDAs and RSs completed by June 2017
The GAMD TWG did not find the milestone useful.
3.6.6. Progress against target
reported annually
Milestone deleted
KRA 4 – Budgeting Control and Oversight
The IAGD TWG recommended to add these milestones.
N/A New milestone: 4.1.3. 450 Internal auditors trained on implementation of Quality Assurance and Improvement Program procedures Mannual by June 2015
Improve adherence to financial regulations and controls - Continue to monitor compliance with IA benchmarks
N/A New milestone: 4.1.4. Independent quality assurance assessment of (Internal Audit Units) IAUS in MDAs and LGAs completed by June 2016
127
Rationale for Change
Previous output/ milestone
Revision - SEPT 2013
PEFA 2013 finding Other (TWG)
The IAGD TWD recommended that the milestone is moved under risk based audit.
4.1.6. 550 internal auditors and other stakeholders trained in risk management process and risk based audit by June, 2016
Revised numbering as 4.1.10
The IAGD TWG recommended that the milestone includes conducting of compliance audits
4.1.3. Effective internal audit units and audit committees established to all MDAs and LGAs by June 2016
Revised text and numbering: 4.1.5. Effective IAU and audit committee established and internal auditors conduct compliance audit and evaluate effectiveness of internal control in MDAs and LGAs by June 2016
The milestone is renumbered given the sequencing of milestones.
4.1.4. The Pilot stage of Computerised Audit will be finalized by June 2014.
Revised numbering as 4.1.6
4.1.5. Computerised Audit in place by June 2016.
Revised numbering as 4.1.7
4.1.7. Technical Audits are conducted for 70 Projects by June, 2014
Revised target date and renumbering as 4.1.8 4.1.8. Technical Audits are conducted for 70
Projects by June, 2016
Ensure agreed corrective measures in response to audit findings are taken
N/A New milestone: 4.1.9. Implementation status of corrective
measures for internal and external audits (CAG recommendations) submitted by all the IAUs in MDA/LGA to IAGD on quarterly basis by June 2014
128
Rationale for Change
Previous output/ milestone
Revision - SEPT 2013
PEFA 2013 finding Other (TWG)
The TWG IAGD agreed on the following additional milestones.
N/A 4.1.10. To train 300 Accounting Officers, Head of Departments, Audit Committee members and internal Auditors on the guideline for Fraud Risk management, Internal control, Risk Management Monitoring and Evaluation by June 2017
N/A New milestone 4.1.11. Study to assess the ICT needs for
effective internal audit management and control by June 2015.
OUTPUT 4.2 External Audit
The NAO TWG agreed to adjust
the milestone target and
timeline. NAO to advise on new
date.
4.2.2. 50% of auditors are moved from auditee premises to NAO offices by 2014
New milestone: 4.2.2. 100% of auditors are moved from auditee premises to NAO offices by 2015
The NAO TWG agreed to adjust
the milestone target and
timeline.
4.2.5. 300 Auditors trained on international standards of auditing and full adoption of International Audit Standards by 2014
Revised text and target date: 4.2.5. 600 Auditors trained on international
standards of auditing and full adoption of
International Audit Standards by June
2016
129
Rationale for Change
Previous output/ milestone
Revision - SEPT 2013
PEFA 2013 finding Other (TWG)
The NAO TWG agreed to adjust
the milestone target.
4.2.10. 200 Auditors trained on audit commanding language (ACL) and other audit based software by 2014
Revised text 4.2.10. 300 Auditors trained on audit
commanding language (ACL) and other audit based software by 2014
OUTPUT 4.3
The NAO TWG agreed to revise
the milestone to an annual
target.
4.3.1. Citizen audit reports available for the 4 General audit reports by June 2013
Revised text: 4.3.1. Citizen audit reports published annually for the 5 General audit reports two months by June 2017
OUTPUT 4.4 Treasury Registrar
The TWG recommended that
TR reviews these milestones
together with milestone on “
1.2.10 “M& E system for
Parastatals reviewed and
implemented by June 2015 ” as
these three milestones seem to
refer to the same monitoring
framework/M&E system
4.4.3 - Monitoring framework for Parastatals set up by June 2014
Revised milestone under output… merging previous 1.2. 10, 4.4.3 and 4.4.4 4.4.3. M&E mechanism for measuring
Parastatals compliance rate set up, reviewed and implemented by June 2015
4.4.4 - Mechanism for measuring Parastatals’ compliance rate developed by June 2014
Merged as above
See page 3 above 1.2.7. New TR's Bill presented to the Parliament by June 2014
See page 3 above.
130
Rationale for Change
Previous output/ milestone
Revision - SEPT 2013
PEFA 2013 finding Other (TWG)
See page 3 above 1.2.8. 150 Parastatals’ Acts Reviewed to be in line with the New TR Act by June 2014
See page 3 above.
See page 3 above 1.2.8. TR’s Office Capacities enhanced by June 2014
See page 3 above.
See page 3 above 1.2.9. M& E system for Parastatals reviewed and implemented by June 2015
See page 3 above.
OUTPUT 4.6 (former 3.1)
Procurement oversight
The mission recommended that all 11 (3.1.1 to 3.1.11) milestones related to procurement oversight (PPRA) under Output 3.1 to be moved to KRA 4 as output 4.6
See pages 10 – 12 on output 3.1 See pages 10 – 12 on output 3.1
NEW OUTPUT Output 4.7. HCMIS entrenched in service delivery points in selected sectors and
its sustainability attained
POPSM has proposed new milestones that need to be agreed at TWG level.
N/A New milestones: 4.7.1. User requirements, gap analysis and Infrastructure requirements identified for 160 SDP undertaken by October 2014 4.7.2. Installation of HCMIS at 160 SDP by June 2016
KRA 5 - Cross-Cutting Issues (Change Management and Programme Monitoring)
131
Rationale for Change
Previous output/ milestone
Revision - SEPT 2013
PEFA 2013 finding Other (TWG)
OUTPUT 5.1 The TWG PMORALG noted that more time was needed to achieve this milestone.
5.1.5. IFMS infrastructure installed to new 35 LGAs, RSs and PMORALG institutions and connected to central server at Dodoma and MoF by June 2013
Revised text and target date: 5.1.5. IFMS infrastructure installed to new 35 LGAs, RSs and PMORALG institutions and connected to central server at Dodoma and MoF by Dec 2014
5.1.6. MoF IFMS linked to PMO-RALG IFMS to the immediate capture of the Approved Budget and all Exchequer transfers to RSs and LGAs respectively by June 2013
Revised target date: 5.1.6. MoF IFMS (EPICOR) linked to PMO-RALG IFMS to the immediate capture of the Approved Budget and all Exchequer transfers to RSs and LGAs respectively by June 2014
The TWG PMORALG noted that more time was needed to achieve this milestone.
5.1.7. Completed capacity building to key users of IFMS from the new 35 LGAs, RS and PMORALG institutions by June 2013
Revised target date: 5.1.7. Completed capacity building to key users of IFMS from the new 35 LGAs, RS and PMORALG institutions by June 2014
OUPUT 5.2 The TWG PMORALG decided to delete the milestone.
5.2.4 EPICOR is able to provide real-time information to all LGAs on flow of funds by July 2015
Milestone deleted
OUPUT 5.3 The TWG FISM recommended that a feasible date is set. FISM to advise.
5.3.1. DFISM is operationalized and controls are put in place to manage software acquisition and development by Dec 2012.
Revised text and target date: 5.3.1. FISM is operationalized and controls are put in place to manage software acquisition and development by 2015.
132
Rationale for Change
Previous output/ milestone
Revision - SEPT 2013
PEFA 2013 finding Other (TWG)
OUTPUT 5.4 The TWG jointly decided that the milestones on budget transparency and fiscal information would be shifted to KRA 2 to reflect actual responsibility of the milestones. A new milestone in the form of GCU extending support/working closely with Office of Budget Commissioner to publish the relevant budget documents can instead be inserted under KRA 5.4
5.4.4 The Approved National Budget is published on Ministry of Finance website by September each year
Milestones merged and revised text: 5.4.1. Support the Budget Division and Policy Analysis Division to publish the relevant budget documents and fiscal information.
5.4.5 Publish Citizens Budget by November each year.
5.4.6 A Year-End Report (budget out turn) comparing the actual budget execution to the enacted budget is published on Ministry of Finance website by October each year
5.4.6. Fiscal Information and Budget Transparency Publication Cycle developed and implemented by June 2014
Given the deletion of other milestone, the milestone is now renumbered.
5.4.5. MoF Communication Strategy developed and implemented by June 2013
Revised numbering: 5.4.2. MoF Communication Strategy developed and implemented by June 2013
The TWG agreed to revise the milestone to reflect the need for a more modern MoF website. The PFMRP interface would also be reviewed.
5.4.6. MoF website timely updated by June 2017
Revised milestone and numbering: 5.4.3. Develop an action plan to modernise MoF website (structure, content and user friendliness) by June 2015
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Rationale for Change
Previous output/ milestone
Revision - SEPT 2013
PEFA 2013 finding Other (TWG)
Output 5.5 The TWG DaHRM recommended to set a feasible date.
5.5.2. Capacity building Plan developed and shared with key Stakeholders by Dec 2012
Revised target date: 5.5.2. Capacity building Plan developed and shared with key Stakeholders by February 2014
The TWG DahRM recommended that the milestone reflects the monitoring of the plan and considers other elements as part of feedback process besides undertaking studies, i.e., manager’s assessment of staff performance following training. DAHRM to provide revised milestone
5.5.3. Two tracer studies conducted to measure impact of training and documented by June 2014 and June 2016
Revised milestone: 5.5.3 An impact assessment of PFM training is conducted to measure staff performance following various trainings by June 2015
OUTPUT 5.6 The TWG Planning recommended that the milestone is revised to reflect the annual work plan
5.6.1. All activities are presented for inclusion in PFMRP annual work plan are presented within the context of a detailed multi-year operating plans by June 2013
Revised milestone: 5.6.1. All activities are presented for inclusion in PFMRP annual work plan are presented within the context of a detailed multi-year operating plans annually
OUTPUT 5.7 The TWG Planning recommended to delete the milestone as it is a duplication of 5.5.2 above.
5.7.1. Capacity building Plan developed and shared with key Stakeholders by December by 2012
Milestone deleted.
Given the above deletion, the milestones are renumbered.
5.7.2. Training on Change Management and Strategic Planning completed by December by 2013
Milestone renumbered as 5.7.1.
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Rationale for Change
Previous output/ milestone
Revision - SEPT 2013
PEFA 2013 finding Other (TWG)
5.7.3. Results Based Management training has been delivered to 60 PFM RP Component managers by June 2013
Milestone renumbered as 5.7.2
OUTPUT 5.8 The TWG Planning recommended that the work plan for the secretariat is done concurrently with programme work plan
5.8.2. Secretariat work plan is completed and approved by JSC by December 2012
Revised milestone: 5.8.2. Secretariat work plan is completed annually alongside the PFMRP annual work plan
OUTPUT 5.9 The TWG Planning recommended to set a feasible date.
5.9.1 Annual review and amendment of the M&E framework to ensure ongoing congruence and relevance by Nov 2012
Revised target date: 5.9.1. Annual review and amendment of the M&E framework to ensure ongoing congruence and relevance annually by Nov
OUTPUT 5.10 The TWG Planning recommended to set a feasible date.
5.10.1. PFM information session completed to disseminate results of: ICT mapping exercise, ICT Harmonization Integration Plan by March 2013
Merged milestone: 5.10.1. PFM information session completed to disseminate results of: ICT mapping exercise, ICT Harmonization Integration Plan by June 2014 IAG action plan, ACGEN’s Plan to transition to Accrual Accounting
The mission recommends to revise the milestone to reflect the need for secretariat support in organising sessions (presentations, etc) for profiling of PFM activities/issues.
5.10.2 IAG action plan, ACGEN’s Plan to transition to Accrual Accounting
OUTPUT 5.11 The TWG agreed to adjust the date given the recent PEFA, etc.
5.11.3. Independent program evaluations are completed in 2014
Revised text: 5.11.3. Independent program evaluations are completed towards end 2014/2015
The TWG agreed to revise the
5.11.4 Dialogue structures are working as evidenced by combined DP/GoT
Revised milestone:
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Rationale for Change
Previous output/ milestone
Revision - SEPT 2013
PEFA 2013 finding Other (TWG)
milestone and combine the assessment of the dialogue structure and surveys on KRA teams and JSC arrangements preferably to be undertaken as part of independent evaluation.
Survey results (Survey 1-March 2013/ survey 2 – March 2015 for Effective program implementation Improved)
5.11.4. Dialogue structures are working as evidenced by combined DP/GoT surveys/independent evaluation to ensure effective program implementation
5.11.5. Surveys to ensure that teams (KRA Teams and JSC members)are actually working completed, March 2013, March 2015 and results informed to JSC for action
Milestone merged in 5.11.4
OUTPUT 5.13 (Zanzibar)
The TWG ZNZ agreed to combine the two milestones as Zanzibar is already preparing its 3 year strategic plans following a comprehensive evaluation of PFM system (support from Norway). As such, once agreed by joint DP, MoF and ZNZ agreement is made, PFMRPIV support will be aligned to strategic plan. he previous milestones are now merged
5.13.2. Milestones developed and agreed after discussion with Zanzibar and thereafter decide on the support by September 2012
5.13.3. Zanzibar PFMRP Strategy developed by June 2014
Milestones merged and revised as 5.13.1: 5.13.1 Support to jointly (DPs, ZNZ and MoF) agreed Strategic plan on PFM reform in Zanzibar
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ANNEX D: PENDING PRINCIPAL PFM LEGISLATIONS
PFM Scope Act Rationale Progress Tabling to Parliament (Tentative
date)
Revenue Management
Tax Administration (new) Establishing a common tax procedure among different taxes collected by Tanzania revenue authority (TRA)
A Bill has been submitted to the cabinet for approval. It is expected that Cabinet approval and Attorney General Verification will be done in time for the Bill to be submitted to parliament.
Feb, 2014
Value Added Tax (VAT) – (revised)
To review the current system of tax exemptions with the value-added Tax (VAT) regime which will lead to the amendment of the VAT to be in line with international best practices
The Cabinet paper for the VAT Act is being prepared with support from IMF consultant. The draft bill will shared to internal stakeholders for comments.
April, 2014
Debt Management
Government Loans, Guarantees and Grants Act (revised)
To incorporate provisions that ensure a greater control of public indebtedness growth, and limit fiscal risks stemming from contingent liabilities and also consider possible conflicting legal frameworks under PPP Act and Loans and Guarantees Act among others
Review in progress. Team is drafting the revised Act (combined with work on strategy).
April, 2014
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Treasury Registrar Act (new)
Empowers and Defines new roles and responsibilities of TRO
It has been submitted to Cabinet Secretariat for an initial review, and now TRO is incorporating comments from the cabinet secretariat.
June, 2014
Budget Execution
Local Government Finances Act (revised)
- Do -
PMOLARG have completed the review of the LG finance act. in the review, they have identified areas that need amendments. however, they have a challenge on funding because they need fund to organize a wider stakeholder's workshop to share the identified areas and collection of the comments from stakeholders
June, 2014.
Public Finance Act (revised) To include provisions for migration to IPSAS Accrual and other considerations including CAG and others
The work is in progress. The committee is still collecting opinions from various stakeholders. A draft of the revised PFA is ready and currently is being circulated for Stakeholders ‘comments since August 2012.
June, 2014
Process for approval of an Act:
1. Respective Department or Division prepares a draft Bill
2. Ministry’s legal department vets the draft Bill
3. Ministry submits to IMTC (Inter-ministerial Technical Committee - Permanent Secretaries) and in parallel with Attorney General
4. Approval of Bill by Attorney General
5. The Ministry submits the Bill to Cabinet
6. The Cabinet submits Bill to the Parliament
7. Following approval at all stages/readings (1st
, 2nd
and 3rd
) in Parliament, the Bill is enacted
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8. The Act is signed by the President
9. The Act is gazetted and becomes enforceable
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ANNEX E: TORS OF THE PFMRP JOINT SUPERVISION MISSION 2013
PFMRP IV 2013 Joint Supervision Mission
Terms of Reference
1. Background The Public Financial Management Reform Programme PFMRP Phase IV, (PFMRP IV) commenced on the 1st July 2012 and will run for five years up to FY 2016/17. The strategy strives at enhancing revenue mobilization, planning and budgeting, transparency, accountability, efficiency and effectiveness in the use of resources and implementation will be through 5 Key Result Areas (KRAs) of the PFM system; 1) Revenue management, 2) Budget and Planning, 3) Budget execution, Transparency and Accountability, 4) Budget control and Oversight, 5) Change management, Programme monitoring and Communication.
Each year, GoT and DPs have agreed to jointly undertake a Supervision Mission to assess progress in PFM reforms against the objectives set out in the M&E framework. This supervision mission marks the 4th since 2010 that this exercise takes place. More specifically, the mission will take stock of progress since Sept 2012 and allow for necessary adjustments. However this supervision mission marks the second since the commencement of PFMRP IV in July 2012.
Demonstrating sound progress on PFM reforms is a critical condition for DPs’ provision of General Budget Support (GBS) and other funding through GoT systems. PFM reform progress therefore forms a key part of the assessment within the GBS Performance Assessment Framework (PAF).
Further, the PEFA 2013 central government was undertaken and its final report was circulated to stakeholders. The PEFA 2013 assessment provides an opportunity for the GoT and Development Partners to reassess the milestone set in PFMRP IV and be used as a baseline for monitoring progress and future PEFA assessments. As such, the 2013 joint supervision mission provides the opportunity for GoT to pragmatically outline its action plan to the recommendations of the PEFA 2013. Thorough discussions of PEFA response/follow-up plan will be a key element for this mission.
2. Objectives and Scope of the Mission
The 2013 PFMRP Joint Supervision mission has the following objectives, noting some overlap between them:
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6) To assess and agree on the overall progress and results from the implementation of the action plans of PFMRP IV FY 2012/13. This will include a particular focus on progress since the last Supervision Mission in September 2012.
7) To assess and agree on progress in the implementation of PFMRP IV so far against its agreed milestone in M & E framework. This will be in view of the draft annual report FY 2012/13 ending June 2013.
8) To propose possible adjustments to the M&E framework and the Operations Manual in order to keep these documents current and relevant. This will specifically address any adjustments in relation to the PEFA recommendation action plan. Further, as discussed at the JSC held on 9th July, 2013 a list of milestones to be reviewed will be discussed and finalised in the TWGs in this period. (The list is provided as part of key documents).
9) To assess and jointly agree progress against the General Budget Support Performance Assessment Framework (GBS PAF) for underlying principles (UP), Key Policy Actions (KPAs) and outcome indicators(OI) that are PFM related (see PAF 2013 at Annex A).This could also provide the opportunity to discuss the potential PAF 2014.6
10) To identify issues, challenges and opportunities that needs to be considered or addressed in the future in order to enhance and improve the PFM outcomes under each KRA.
3. Methodology
The review will be carried out through interviews with Key Result Area (KRA) and Component Managers, beneficiaries (for example, PMORALG, POPSM, MDAs, LGAs and Zanzibar) and other key stakeholders (for example, BoT). There will also be a desk review of key documents.
In due time before the mission, and during the mission as needed, GoT will provide the review team with supporting documents for review. Some key documents (such as annual report) should highlight both achievements made and challenges faced. The proposed schedule and detailed TWG schedule of meetings are annexed to this ToRs.
4. Duration and Phasing
The mission will take place from the 16 September – 04 October, 2013 and will aim to coordinate as best as possible with other review missions held at this time to ensure beneficial synergies and minimize transaction costs for both GoT and DPs.
A workshop/presentation of the initial mission outcome will be undertaken following the end of the TWGs at a wrap up meeting.
6 However, this depends on the status of preliminary discussions on the scope of the PAF 2014 being finalised by the
time of the supervision mission embarks.
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The Final aide-memoire will be completed and presented two weeks after the draft report in order to have sufficient time for the GBS Troika Plus pre-GBS Review preparatory meeting with Permanent Secretaries and DPs envisaged for 19 November 2013.
5. Review Teams
The aggregated Review Team will be composed of representatives from GoT and DPs. It will be co-led by DPS-PFM MoF and DP Co-Chairs (DFID/KfW), who will be responsible for providing guidance and overall dialogue. The aggregated Review Team will also be split into smaller sub-teams. Each sub-team will be assigned a joint GoT-DP lead as per the agreed division-of-labour for KRAs – see Annex B. These sub-team leads will be responsible for drafting the progress report for the KRA and providing comments to feed into the Final Report. The PFMRP GoT & DP secretariats will provide support in organisation of meetings, follow-up and reporting.
6. Reporting
As noted above, the aggregated Review Team will share its initial findings before the end of the Mission. A draft final (maximum 35 pages plus supporting annexes) that meets the objectives of the Mission will also be completed before the end of the Mission.
The final aide-memoire will be completed and approved in sufficient time for the GBS Troika Plus pre-GBS Review preparatory meeting with Permanent Secretaries and DPs (envisaged for 19 November 2013).
6. Documents to be consulted/Information required (but not limited to)
i. All PFMRP IV Core Documents including the Strategy, M&E Framework, Operations Manual and 5-Year Work Plan and Budget.
ii. Draft PFMRP IV Annual report FY2012/13, iii. GBS PAF and Progress Reports for 2012/13; iv. Agreed 2013 assessment of PFM Underlying process and referenced documents
therein; v. Supervision Mission Report 2012; vi. NAO audit reports – (as posted on the NAO website, a special follow up of the
performance report of IFMS should be provided); vii. Tanzania PEFA 2013 Central government assessment report and its draft
response/follow up plan; viii. List of milestones to be reviewed as agreed at JSC of 9 July 2013 ix. Internal audit report (sample); x. Treasury memorandum and action plan (response to audit queries); xi. Budget execution reports (detailed and summary); xii. Means of verification as identified in matrix on PFM underlying process.
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ANNEX F: MISSION PARTICIPATION FROM GOT (NOT EXHAUSTIVE)
NAME DESIGNATION INSTITUTION
Dr SB Likwelile Permanent Secretary Ministry of Finance
Mr. Sebastian Ndandala Ag. PC - PFMRP MOF - PFMRP Secretariat
Mr. Linus Kakwesigabo Finance Exp Administration MOF - PFMRP Secretariat
Mr. Alexander Lweikila Comm. Specialist MOF - PFMRP Secretariat
Mr. Adrian Njau Principal Economist Ministry of Finance
Ms Fatima Kiongosya Director – Planning Ministry of Finance
Mr Juma Maguru Assistant Director – Planning Ministry of Finance
Ms. Elisaweki Macha Finance Management Officer (Planning)
Ministry of Finance
Ms. S. Majura P/Economist Ministry of Finance – PAD
Mr. W. Chimwaga Principal Finance Management officer Ministry of Finance – PAD
Ms. A. Mbelwa Principal Finance Management Officer Ministry of Finance - ??
Mr. E. Laiton Finance Management Officer Ministry of Finance – Planning
Mr. Augostine Ollal Ag. CPAD Ministry of Finance – PAD
Ms. Bertha G. Malambugi Principal Analyst MOF – TRO
Mr. Aidan G.P. Makalla Senior Financial Management Officer MOF – TRO
Mr. Peter Kaungo Financial Management Officer MOF – TRO
Mr. Mohamed Bwanga Financial management Officer MOF – TRO
Mr. Peter Gragilo Principal Finance Officer TR-Office
Ms. Aisha Mponezya Senior Management Analyst Treasury Registrar Officer
Mr. R. Masudi Ag. ATR(R) TR Office
Mr. W. Buhunire Ag. ATRM Treasury Registrar
Ms. Tatu S. Issike Human Research Office Treasury Registrar
Mr. Mzalalila Statistician Treasury Registrar Office
Ms. Hilda E.Segele Public Procurement Policy Analyst Ministry of Finance PPD-
Mr. Awezae Juma Public Procurement Policy Analyst Ministry of Finance- PPD
Mr. Morice G.L. Garigo Public Procurement Policy Analyst Ministry of Finance- PPD
Mr. Benedict Kagizo Public Procurement Policy Analyst Ministry of Finance- PPD
Mr. Rodgers Mapeghe Public Procurement Policy Analyst Ministry of Finance
Mr. Yoswam Nyongea Director of Procurement POSA
Mr. Malik Aam Director of Business Support Services PSPTB
Ms. Florida Mapunda Legal officer PPAA
Mr. Ole-Mbille Kissioki Ag, Executor Sect. PPAA
Mr. Godfred B. Mbanyi Director of Professional Development PSPTB
Mr. Petter Shilla DIS-PPRA PPRA
Mr. Robert Kitalala HPMU PPRA
Ms. Hannah Mwakalinga DCS PPRA
Mr. Laurent Shirima Ag. CEO PPRA
Ms. Bertha Lipindi MME PPRA
Mr. Ezra Msanya DGAM Ministry of Finance – DGAM
Mr. Sixbert H.Q ADGAM/Ac MOF - DAMD
Ms. Herrieth E. Chamriho ADGAM/IC MOF - GAMD
Mr. George Kanyawa PSV MOF - GAMD
Mr. Wenceslaus Sobayi SSV MOF - GAMD
Ms. Vicky Jengo Principal Financial Management Officer Ministry of Finance - IAG
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Mr. Sabatho Tarimo Internal Auditor/Principal Engineer Ministry of Finance -IAGD
Mr. Stansilau Mpembe AIAG (B & P) Ministry of Finance
Mr. E.M. Subbi AIAG (RM & C) Ministry of Finance - IAG
Mr. Adolphina Lugand IA Ministry of Finance- IAG
Mr. Mantum Dau IA Ministry of Finance- IAG
Mr. Omari A. Msuya IA Ministry of Finance- IAG
Mr. Nikundiwe Kibaja IA Ministry of Finance- IAG
Mr. A. Misana ACP/D Ministry of Finance-
Mr. Joseph Nyansiro HICT Ministry of Natural Resources and Tourism
Ms. Emiliana Mallya ACCT Ministry of Natural Resources and Tourism
Ms. Martha Delphinus ACCT Ministry of Natural Resources and Tourism
Mr. Tarish M.K. PS Ministry of Natural Resources and Tourism
Mr. Layson Mwanjisi CA Ministry of Natural Resources and Tourism
Mr. Benjamin Mashauri DAG(PA) NAOT
Mr. Francis Mwakapalile Ag.CAG NAOT
Mr. Malima Nkilijiwando H/Planning NAOT
Mr. Athuman Selemani DAG(NA) NAOT
Mr. Henry Kitambwa PLO NAO
Mr. Anselm Tairo Auditor-TSSU NAO
Mr. Kuki G. Tarimo Economist MOHSW
Mr. Amandus M. Rutaihwa Senior Procurement MOHSW
Mr. Slivesta Njelekea Economist MOHSW
Mr. Buji Emannuel Economist Ministry of Finance- Planning
Mr. Bernard Konga Assistant Director Budget MOHSW
Ms. Stella Malya Ag. Chief Accountant MOHSW
Mr. Nick Bain PFM Advisor MOHSW
Mr. Daniel Mhando Accountant MOHSW
Ms. Mwanaidi Mtanda ACGEN Ministry of Finance- ACGEN
Mr. Azizi H. Kifile AACGEN Ministry of Finance - ACGEN
Mr. Victus Paul AACGEN Ministry of Finance- ACGEN
Ms. Irene B, Kasambala AACGEN Ministry of Finance- ACGEN
Ms. Mwajuma Mbogoyo Ag.CA/V.23 Ministry of Finance- ACGEN
Mr. williard.Y, Kalulu Ag.CA Consolidate Ministry of Finance - ACGEN
Mr. Adam Msangama SDU(T) Incharge Ministry of Finance - ACGEN
Mr. Rodney Chogoro SA/Rev Ministry of Finance - ACGEN
Ms. Mariana Lawosi SDU(A) Incharge Ministry of Finance - ACGEN
Mr. Maurice Ngaka Incharge CMU Ministry of Finance - ACGEN
Mr. James Lupembe Incharge B/RECO Ministry of Finance - ACGEN
Ms. Jane L. Mollel Incharge CPO ACGEN
Mr. Simeon J. Maingo Ag.CA/SMGT ACGEN
Mr. G.A. Nkonoki Director/Planning POPSM
Mr. Emmanuel Mlay DHCM PO-PSM
Mr. Priscus Kiwango DICTS PO-PSM
Mr. Elisante.M.Mbwib AD/HRD PO-PSM
Ms. Fatima S. Kiongosya Director of Planning Division Ministry of Finance
Mr. Juma S. Maguru Assistant - DPD Ministry of Finance- Planning
Ms. Deodatha R. Makani DAHRM Ministry of Finance- DAHRM
Mrs. Visensia Kagombora ADHRM Ministry of Finance-DAHRM
Mr. G.A. Manambo ADHRM Ministry of Finance- DAHRM
Mr. A. Dede PHRO Ministry of Finance- DAHRM
Mr. Bernard Dadi Ag. Director-NPS Bank of Tanzania
Mr. Filbert Sumaye- BoT-NPS Bank of Tanzania
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Mr. John Sausi BoT – MIS BoT
Mr. Halim Minja BOT –BKG BoT
Mr. Balairesh Mohamed BOT –BKG BoT
Ms. Sauda Msemo Senior Financial Analysist BoT
Mr. Maurice Ngaka Accountant Ministry of Finance - Acgen
Ms. Leticia Ng’wandu Acting Chief Accountant-PD Ministry of Finance - Acgen
Mr. Jumanne A.Sagin PS PMO-RALG
Mr. Ignas Chuwa S/ Economist Ministry of Finance
Ms. Anna W. Mtani Director PMO-RALG
Mr. Erick Kitali Asst Director PMO-RALg
Mr. Shomari Mukhandi Assist Director PMO-RALG
Mr. Samataba Z. M DPS (Ed) PMO-RALg
Mr. E.N. Mchome DLG PMO-RALG
Mr. Paison Mwanyasi S. Auditor Ministry of Finance - IAG
Mr. Lucas G. Mrema Accountant PMO-RALG
Ms. ElisaJ. Rwamiago Financial Management Officer PMO-RALG
TRA
TRA
TRA
TRA
TRA
TRA
TRA
Ms. Ingiahed Mduma CGCO Ministry of Finance
Ms. Eva Valerian Communication officer Ministry of Finance
Mr. I.K. Liguo Economist Ministry of Finance
Mr. Petter Msangila DFISM Ministry of Finance
Ms. Zubeda Mahugu ADFISM Ministry of Finance
Mr. Hamza Rashid ADFISM Ministry of Finance
Ms. Faith Didas PCSA Ministry of Finance
Ms. Diana Mjema CSA Ministry of Finance
Mr. Kelvin Mndeme SCSA Ministry of Finance
Mr. Abuu Msati SCSA Ministry of Finance
Mr. A. W. Mwambene Ass Director DPP MoEVT
Mr. C.N. M. Iraba Principal Finance Management Officer MoEVT
Mr. Erick S. Gama Accountant MoEVT
Mr. Singi R. Madata Coordinator RCU
Mr. Apolinary Tamaayamali Assistant Coordinator RCU
Mr. Pius M. Mponzi Asst.Commissioner Ministry of Finance - CB
Mr. Charles A, Mwamwiga Ag.ACB/R Ministry of Finance
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ANNEX G: Mission Participants From Development Partners
Name Organisation
1 Gauthier De Woelmont BTC
2 Jean Jose Padou CIDA
3 Christine John Denmark
4 Mette Melson Denmark
5 Nick Highton (Co-chair) DFID
6 Vivek Misra DFID
7 Guillaume Barraut EU-Delegation
8 Virginie De Ruyt EU-Delegation
9 Allen Killewo Irish Aid
10 Estelle Cholet Irish Aid
11 Joseph Nyamboha JICA
12 Yoshisuke Kondoh JICA
13 Janne Rajpar (co-chair) KFW
14 Ann- Lena Müller KFW
15 Johan Kiessling Sweden
16 Niels Knudsen UNDP
17 Denis Biseko WB
18 Victoria Cunningham WB
19 Paddy Siyanga Knudsen DP PFM secretariat
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ANNEX H: Final meeting schedule for 2013 Joint Supervision Mission
Time Issues For Discussion Meeting Location
GOT component
Review Team- DPs
Saturday, 14/09/2013 (following PEFA retreat)
Agreement on overview of mission
Oceanic Bay, Bagamyo
All All (see key for DP KRA teams list)
Monday, 16/09/2013
8.30 – 10.30
PAF tax related indicators, Tax collection, revenue forecast, exemptions, Division of Labour between CPAD and TRA, Budget transparency including budget calendar, Capacity building and support from other sources,
CPAD office, MoF building, 3
rd
floor, room 339
CPAD DP KRA 1 team: Denmark, Japan
11.00 – 13.30
Oversight, registry and M&E of parastatals towards new TR act as well as capacity building
TR office TR DP KRA 1 + 4 teams:
Denmark and DFID
14.00 – 16.00
JAST and Aid Platform, DP funding on GoT system
EFD conference room
CEFD DP KRA 1
Denmark, UNDP
Tuesday - 17/09/2013
8.30 – 10.30
Program based budgeting, Planning and budgeting tools including MTEF, budget legal framework, budget calendar, budget transparency, LGA formula
MoF CB DP KRA team 2: Sweden,
Ireland, Belgium
11.00 – 13.30
Procurement compliance, capacity building, e-procurement
PPRA Office PPRA DP KRA 4:
DFID and AfDB
14.00 – 16.00
Public procurement capacity, reviewing M and E.
Public Procurement
Office
Sukari House
Public Procurement
Policy Department
DP KRA 4 team:
DFID and AfDB
Wednesday - 18/09/2013
8.30 - 10.30
Debt management (establishment of DMO and capacity building)
CPAD office, MoF building, 3
rd
floor, room 339
CPAD DP KRA 3 team:
CIDA, EU and World Bank
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Time Issues For Discussion Meeting Location
GOT component
Review Team- DPs
11.00 – 13.30
Asset management (valuation of govt assets, capacity building, policy development)
DGAM office
Sukari House
DGAM DP KRA 3 team
14.00 – 16.00
Internal Audit capacity building and mandate, relations to other accountability institutions (NAO and PPRA), follow up of audit matters
IAG Office, Sukari House, 5
th
floor
IAG DP KRA 4 team: DFID, Ireland, Japan
Thursday - 19/09/2013
8.30 – 10.30
Capacity building, towards AFROSAI 4, extending the audit coverage incl. follow up audits, database on outstanding matters, Citizen audit report
NAO conference room
NAO DP KRA 4:
DFID, Ireland and Denmark
11.00 – 13.30
ICT/IFMIS (ICT mapping and action plan, capacity building)
DFMIS office DFMIS DP KRA 5:
KfW and DFID
14.00 – 16.00
Communication (strategy, publications)
CU office MoF Communicati
on Unit
DP KRA 5:
KfW and DFID
Friday - 20/09/2013
14.00-15.30
Income generating MDAs, Tax and non-tax revenues, Flow of Funds
MNRT meeting room
Permanent Secretary
DP KRA 1
(Denmark and DFID)
Monday - 23/09/2013
8.30 – 10.30
Change management and Cross Cutting Issues
DPD Office DPD DP KRA 5:
KfW and DFID
11.00 – 13.30
Flow of funds, IFMIS EPICOR (Capacity building and connectivity), Closing of accounts, Towards accrual accounting, audit response.
AccGen Conference room
AcGEN DP KRA 3 and 5.
14.00 – 16.00
Spending MDAs, Budget planning and execution, Flow of funds
Ministry of Health and Social
Welfare
Permanent Secretary
DP KRA 2,5
Tuesday – 24/09/2013
8.30 – 10.00
Capacity building plan DAHRM office
MoF 3rd
Floor, room 9
DAHRM
DP KRA 5:
KfW and DFID
14.00 – 15.00
Change management: Personnel management (distribution across
POPSM meeting room
POPSM DP KRA 5
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Time Issues For Discussion Meeting Location
GOT component
Review Team- DPs
country/formulas, payroll management), Incentives and payroll structure, capacity building (co-ordination/systematisation of training)
15.30 – 18.00
Change management and Cross Cutting Issues
PMU Conference Room
DPD DP KRA 5:
KfW and DFID
Wednesday – 25/09/2013
14.00 - 15.30
TISS, EFT, Connectivity, Closing bank account and reconciliation, Debt management, transfer of funds
BoT meeting room,
BoT DP KRA 5 (3)
Thursday – 26/09/2013
11.30-12.30
Income generating MDAs, Tax and non-tax revenues, Flow of Funds
Ministry of Energy and
Minerals
Permanent Secretary,
Commissioner for Minerals,
Chief Accountant
DP KRA 1, 3
14.00 – 15.00
PPRA follow-up meetings PPRA Office PPRA DP KRA 4:
DFID and AfDB
14.00 –
16.00
PAF tax related indicators, Tax collection, revenue forecast, exemptions, Division of Labour between CPAD and TRA, Division of Labour between LGA and TRA, support from other sources
TRA Office TRA
DP KRA 1
14.00-15.30
Spending MDAs, Budget planning and execution, Flow of funds
Ministry of Education
meeting room
Permanent Secretary
DP KRA 2,5
Friday - 27/09/2013
8.30 – 10.30
Zanzibar (PFM strategy) TBC DPD/
Zanzibar (POPEF)
DP KRA 5:
KfW, Belgium and DFID
10.00 – 11.00
Follow-up meeting MoF CB DP KRA team 2: Sweden,
Ireland, Belgium
Monday – 30/09/2013
9.00 – 11.00
Communication (strategy, publications)
CU office MoF Communicati
on Unit
DP KRA 5:
KfW and DFID
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Time Issues For Discussion Meeting Location
GOT component
Review Team- DPs
14.00 – 18.00
Program based budgeting, Planning and budgeting tools including MTEF, LGA formula, Flow of funds, Closing of accounts, roll out of IFMIS/EPICOR and connectivity
Dar-Es-Salaam PMO-RALG DP KRA 1, 2 and 5
Tuesday – 01/10/2013
09.30 – 10.30
Parliament Office/Secretariat, Support under PFMRP IV, objectives, targets and milestones
Parliament Office,
Dar es Salaam
Parliament Secretariat
DP KRA 4
12.00-13.00
Reform Co-ordination Office, co-ordination of core reforms
RCU office RCU PFM DPG Co-chairs
14.00 – 15.30
Presentation on ACGEN plan for migration IPSAS Accrual
MoF AcGen All
15.30 – 16.30
Follow-up meeting
Tuesday – 21/10/2013
Submission of draft aide-memoire to MoF
MoF
DPs
Tuesday – 29/10/2013
14.00 -17.00
Wrap up meeting MoF
All All
150
ANNEX I: LGA EPICOR IMPLEMENTATION: ACHIEVEMENTS & CHALLENGES – Snapshot Report