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THE UNITED REPUBLIC OF TANZANIA

MINISTRY OF FINANCE

PUBLIC FINANCIAL MANAGEMENT REFORM PROGRAMME

(PFMRP PHASE IV)

MID-YEAR PROGRESS REPORT FOR FY 2012/13

(JULY – DECEMBER 2012)

CONTACT:

Permanent Secretary

Ministry of Finance

P.O.Box 9111

Dar es Salaam

April, 2013

1

TABLE OF CONTENTS

LIST OF ABBREVIATIONS ................................................................................................................................. 2

Executive Summary ................................................................................................................................................ 3

Chapter 1.0 BACKGROUND AND INTRODUCTION ........................................................................................ 4

Chapter 2.0 PROGRESS ON IMPLEMENTATION OF PLANNED ACTIVITIES IN FY 2012/13 ................... 7

Chapter 3.0 BUDGET EXECUTION ................................................................................................................... 19

Chapter 4.0 CHALLENGES AND RECOMMENDATIONS FOR NEXT PERIOD .......................................... 24

Annexes:

- Annex 1: Procurement progress report ended 31st December, 2012

- Annex 2: Detailed assessment of milestone status as at Dec 2012 based on M&E

Framework for 2012 – 2017

- Annex 3: Report of the 2012 PFMRP IV Joint Supervision Mission

2

LIST OF ABBREVIATION

AG Attorney General

CAG Controller and Auditor General

ICT Information & Communication Technology

IPSAs International Public Sector Accounting Standards

LAAC Local Authority Accounts Committee

LGAs Local Government Authorities

JSC Joint Steering Committee

KRA Key Result Area

MCA – T Millennium Challenge Account - Tanzania

MCC Millennium Challenge Cooperation

MDAs Ministries, Departments and Agencies

M&E Monitoring and Evaluation

MIS Management Information System

MKUKUTA Mkakati wa Kukuza Uchumi na Kupunguza Umaskini Tanzania

MoF Ministry of Finance

MTEF Medium Term Expenditure Framework

PAC Public Accounts Committee

PEFA Public Expenditure Framework for Assessment

PFMRP Public Financial Management Reform Program

PMU Procurement Management Unit

PO-PC President’s Office – Planning Commission

PO- PSM President’s Office – Public Service Management

RSs Regional Secretariat’s

SMTB Secretary for Ministerial Tender Board

TRA Tanzania Revenue Authority

TRMIS Treasury Registrar Management Information System

TWG Technical Working Group

3

EXECUTIVE SUMMARY

PFMRP Phase IV was officially launched in June, 2012 and its implementation started on 1st

July, 2012. The Programme is designed to consolidate and build on achievements of the previous

phases in line with National policy objectives stated in the Tanzania Development Vision 2025,

the Five Year Development Plan (FYDP) 2011/12 - 2015/16 and the MKUKUTA/MKUZA II

aimed at fostering economic growth and the reduction of poverty in the country. PFMRP IV aims

at strengthening and improving public financial management in a more coordinated manner in

order to meet the current fiscal policy challenges.

PFMRP Phase IV implementation is organized in five Key Result Areas (KRAs) of the PFM

system; namely 1) Revenue management, 2) Budget and Planning, 3) Budget execution,

Transparency and Accountability, 4) Budget Control and Oversight, 5) Change management,

Program Monitoring and Communication. The KRAs are structured to ensure that all the

different aspects and dependencies of a sound PFM are managed during the program

implementation. The strategic actions are facilitated through the results-based management,

program based budgets, accountability and performance audits, transparency and

communication.

The approved budget for FY 2012/13 is Tshs 33,597,704,853 of which Tshs 3,996,904,853 are

Project funds1, Tshs. 16,250,000,000 Government funds and Tshs. 13,350,800,000 Basket

Funds2. During the period a total of Tshs. 4,902,205,444 was released of which Tshs.

2,058,325,000 from GoT; Tshs. 36,835,194 from Project funds and Tshs. 2,807,045,250 from

Basket Funds. Actual expenditure as at 31st December, 2012 amounted to Tshs. 1,456,163,521

being 30% of the funds released. Expenditure by source was GoT Tshs. 592,775,065 being 29%

of the released funds; Project Tshs. 36,835,194 being 100% of the released funds and Basket

Funds Tshs. 826,553,262 being 29% of the released funds.

In procurement, activities which were at contracting stage including on-going activities from

financial year 2011/12 were Tshs. 11,701,520,000 representing 59.5% of the total procurements

1 Bilateral project funds include AfDB and World Bank

2 DFID, CIDA, Denmark, Ireland and KFW have signed a Memorandum of Understanding with the GoT establishing a pooled

funding mechanism.

4

value of Tshs. 19,674,640,000. Out of these Tshs. 10,520,000,000 are for two works project and

Tshs. 1,181,520,000 are for five consultancy activities. During the period under review, 11

activities estimated value of Tshs. 2,081,000,000 representing 10.6% of the total procurement

estimates were at various procurement stages. 41 activities estimated to cost Tshs.

5,892,120,000 being 30% of the total procurement estimates had not been started. Detailed

procurement progress report is displayed under Annex A1.

The programme recorded fairly satisfactory progress whereby 15 milestones were achieved and

87 milestones were on track. Notable achievements are: chart of accounts have been modified

to accommodate program based budgeting; EPICOR system was upgraded from version 7.3.5 to

9.05; Approved National Budget and Citizens Budget were published on MoF website; and Joint

Supervision Mission was conducted and report approved. However, there was low absorption of

funds during the period under review due to late release of funds.

The remaining period of the work plan (Jan – June 2013), the respective component managers

are committed to fast track the implementation of activities and will utilize the TWGs to discuss

and resolve emerging issues. It is envisaged that through enhanced information sharing there will

be smooth coordination to achieve milestone targets. The PEFA Central and Local government

will be important exercises for the PFMRP.

5

CHAPTER ONE

BACKGROUND AND INTRODUCTION

1.0 Background

The Government of Tanzania has been implementing Public Financial Management Reform

Programme (PFMRP) for the past two decades in different phases aiming at improving Public

financial management systems across all levels. Phase I was implemented from 1998-2004 with

an objective of controlling expenditure, introducing aggregate fiscal discipline and contributing

to stable macro-economic growth. Phase II was implemented from 2004 to 2008 with an

objective of progressively modernizing the processes, procedures and systems involved in PFM

through the implementation and use of ‘best practice’ tools, techniques and methodologies to

improve revenue forecasting and resource allocation for strategic priorities. Phase III was

implemented from 2008 to 2011 with the objective of ensuring greater predictability and

availability of medium term resources to executing agencies.

1.1 Introduction

PFMRP IV was launched in June 2012 and its implementation started on 1st July 2012. PFMRP

Phase IV is designed and implemented to complement efforts to achieve national policy

objectives stated in Tanzania Development Vision 2025, Five Year Development Plan (FYDP)

2011/12-2015/16 and MKUKUTA/MKUZA II so as to achieve economic growth. The

overarching goal of attaining sound financial management and discipline in public service

delivery for sustainable development will be achieved through implementation of PFMRP IV

five Key Results Areas which are: Revenue management; Budget and Planning; Budget

execution, Transparency and Accountability; Budget Control and Oversight; and Change

management, Program Monitoring as well as Communication. Table 1.1 gives a summary of

KRA overview.

The Public Financial Management reform is implemented in line with the on-going reforms in

the Public Sector which aim at improved performance, efficiency and effectiveness in service

delivery for sustainable economic growth. In doing so, PFMRP IV will address interventions

which will be:

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Comprehensive, to include the various key reform activities in the PFM systems as well as

the cross-cutting issues related to capacity building, improving infrastructure for service

delivery, and reviewing the institutional policy and regulatory frameworks;

Captured in a well defined Monitoring and Evaluation framework, sequenced to manage

priorities and ensure a more accurate cash forecasting and achievement of results;

Linked and inter-dependent with clear demarcation of responsibilities and accountability

Better standardized and automated systems to ensure attainment of desired results in financial

recording and reporting;

Well managed, with effective institutional arrangement to support implementation of the

programme

Focused, aiming at supporting agencies and initiatives which are likely to have a great cross

cutting impact on the PFM system.

Table 1.1 KRA and components overview

Key Result Area (KRA) Major Component, Department and

KRA-TWG

KRA 1: Revenue Management

Leader: CPAD

Focus: improving revenue forecasting and resources mobilization and reviewing &

streamlining existing revenue policies, laws and regulations. The intervention aims

at developing appropriate model for revenue forecasting to improve cash flow

forecasting to spending units. Also the KRA will continue to improve external

resource management, review retention schemes and enhance capacity for managing

public investments.

Commissioner for Policy Analysis

Department (CPAD) – MoF

Treasury Registrar (TR) - MoF

Prime Minister’s Office – Regional

Administration and Local Government

(PMO-RALG)

Commissioner External Finance - MoF

MDAs

KRA 2:Planning and Budgeting

Leader: BC

Focus: improving macro-fiscal policy, planning, MTEF credibility, enhancing

budget classification by adopting GFS 2001 and CoFoG standards, facilitate

program based budgeting, broadening the scope of the chart of accounts, enhancing

monitoring, reporting and accountability and review of the Medium Term Strategic

Planning & Budgeting Manual (MTSPBM) to enable the national development

planning and budgeting system to articulate national policy priority targets with the

desired institutional results.

Commissioner for Budget (CB) – MoF

CPAD – MoF

PMO-RALG

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KRA 3: Budget Execution, Transparency and Accountability

Leader: ACCGEN

Focus: achieving greater predictability of resources to spending units; strengthening

capacity on procurement, cash and debt management; and improving the scope and

quality of financial recording and reporting

Public Procurement Regulatory Authority

(PPRA)

Public Procurement Policy Unit

Accountant General (ACCGEN) - MoF

CPAD - MoF

Government Asset Management - MoF

KRA 4: Budget Control and Oversight

Leader: IAG

Focus: strengthening capacity on audit functions (internal and external) as well as

oversight function of the Parliament. The interventions involves providing technical

guidance and capacity building to MDAs and LGAs in the areas of internal audit and

to facilitate timely independent external examination of financial and performance

auditing and report to the public

Internal Auditor Department - MoF

National Audit Office (and Parliament

PACs)

TR

KRA 5:Change Management Programme Monitoring and Communication

Leader: DPD

Focus: cross cutting issues including capacity building on change management,

Monitoring and Evaluation, stakeholders’ communication, coordination and

leadership for efficient and effective programme implementation.

Department for Financial Management

Information System (DFMIS) - MoF

Government Communication Unit - MoF

Department for Planning Division – MoF

Support to Zanzibar

PMO – RALG

ACGEN - MoF

DAHRM - MoF

Layout of the report

This report comprises of an executive summary followed by five chapters which are: Chapter

one provides background information and introduction; Chapter two covers progress on

implementation of the planned activities; Chapter three reports the budget execution; Chapter

four highlights on challenges and recommendations for next period; Annex 1: Procurement

Progress report for the period ended 31 December 2012; Annex 2: Detailed assessment of

milestone status as at Dec 2012 based on M&E Framework for 2012 – 2017

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CHAPTER TWO

PROGRESS ON IMPLEMENTATION OF PLANNED ACTIVITIES IN FY

2012/13

The Fiscal Year 2012/13 being the first year of PFMRP phase IV implementation is focusing on

activities that lay foundation for the attainment of milestones as outlined in the M&E Framework

as well as Performance Assessment Framework (PAF) 2012 key policy actions.

2.1 Highlights on Targets/Outputs and Implementation Status of Milestones as Per M&E

Result Framework

167 milestones are included in the work plan and budget for FY 2012/13. Out of 167 milestones,

achievement was realized in 11 (7%) milestones. Satisfactory progress was recorded as on track

in 115 (69%) milestones. Delayed and pending milestones were 29 (17%), these involves

activities that could not be initiated before getting specific inputs from stakeholders. 12 (7%)

milestones were at risk of implementation. Milestones on track include those in areas of

consultancy for various studies, works, training and review of legal instruments. Status of

milestones per KRA as at 31st December, 2012 is in table 2.1 while detailed information on each

milestone is outlined in Annex 2. Progress toward achieving the output under each KRA is

presented in the next part.

Table 2.1: Cumulative Milestone Status FY 2012/13 – December, 2012

KRA Achieved On

Track

Pending/Delayed At Risk Total

KRA 1 0 13 5 6 24

KRA 2 1 15 3 1 20

KRA 3 5 39 4 4 52

KRA 4 1 21 3 0 25

KRA 5 4 27 14 1 46

TOTAL 11 115 29 12 167

Percentage 7 69 17 7 100

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KRA 1 Revenue Management:

Objective: Strengthened systems, processes and procedures for improving the operational

capability of the revenue collection by June 2016

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:

Non-tax revenue study on Integration and harmonization of revenue collection is in

progress. A consultant is continuing with a study.

A draft of Tax Administration Bill has been submitted to the cabinet for approval. It is

expected that Cabinet approval and Attorney General Verification will be done early in

third quarter for the draft Act to be submitted to Parliament in April, 2013.

The first draft of new TR Bill has been submitted to Cabinet Secretariat for an initial

review. The bill is expected to be sent to parliament by June, 2013

Implementation Status of Milestones as Per M&E Result Framework

The implementation status on the 24 milestones was fair satisfactory of which 13 (54%) were on

track, 5 (21%) pending and 6 (25%) at risk. Figure 1 below depicts schematic presentation of

KRA 1status as at December, 2012.

Achieved, 0%

On Track, 54%Pending, 21%

At Risk, 25%

Figure 1: KRA Milestone Status

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Milestones at risk include the amendment of the Local Government Finance Act as well as the

assessment of revenue potential for LGAs.

Delayed milestones include revision of the JAST (DCF) and AMP user guidelines. Concerted

efforts may change status on pending milestones once a way forward is agreed to address factors

that are hindering the implementation process.

KRA 2 Budgeting and planning

Objective: Strengthened capacity of planning and budget management, including results and

program based budgeting, within MOF, MDAs and LGAs by June 2016.

Output 2.1: Strengthened capacity of MDAs, RSs and LGAs in implementing program based

budgeting by June 2016.

Programs and sub-programs have been (tentatively) defined and objectives, outputs and

performance indicators were developed from MKUKUTA II and FYDP. Six ministries

were involved in training as a part of pilot phase in fiscal year 2012/13.; these ministries

are Community Gender and Children, Ministry of Finance, Ministry of Education and

Vocational Training, Ministry of Health and Social Welfare, Ministry of Agriculture,

Food Security and Cooperatives and Ministry of Water.

The chart of account has been modified to accommodate Program Based Budgeting.

Continued to implement Program Based Budgeting (PBB) action plan.

Output 2.2: Increased effective utilization of Planning and budgeting tools by 2016

Studies were undertaken in view of a specific budget law and recommendations on legal

review were made.

PER Annual National Policy Dialogue was conducted

Training on resource prioritization and planning was undertaken for members of budget

committee in selected RSs and LGAs.

Implementation Status of Milestones as Per M&E Result Framework

During the period under review one milestone (5%) was achieved, 15 milestones (75%) were on

track, 3 milestones (5%) were pending and one (5%) milestone was at risk out of 20 Milestones

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in this KRA. Figure 2 below depicts the schematic presentation for KRA 2 status as at

December, 2012.

At Risk5%

On Track, 75%

Pending 15%

Achieved5%

Figure 2: KRA 2 Milestone Status

The milestones at risk and delayed include those relate to agreement on the improvement of

LGAs allocation formula.

KRA 3: Budget Execution, Accountability and Transparency

Objective: Improved utilization of public resources in a more effective, efficient and transparent

manner by June 2016

Output 3.1: Improved public procurement performance by PEs by 2015

Annual audit conducted and preliminary results indicated positive trend based on

compliance and Value for Money (VfM) audits in 30 PEs.

Circular has been issued to Procurement Entities (PEs), which makes mandatory Public

Procurement Plan to be part of Strategic Plan.

About 302 PEs out of 393 have been connected with PMIS as reporting tool for procuring

entities to report back to PPRA

Feasibility study was carried out to move from paper based to e-procurement.

With the exception of PEs within newly established districts, 393 PEs were audited by

2012.

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Output 3.2: Strengthened public sector procurement by June 2015

A draft of the public procurement regulations 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.

The staff database has currently registered 824 procurement and supply staff in central

and Local government

Development of the National Procurement Policy is under way and a consultant has

submitted a framework paper for discussion among stakeholders. Finalization is foreseen

before June 2013.

Output 3.3: Strengthened capacity of MDAs, RSs and LGAs in Cash management by 2015

Each LGAs now operates only 6 bank accounts with the substantial amount of dormant

bank accounts to be closed.

Output 3.4: Strengthened public debt management capacity by 2015

The draft debt management report from WB Debt management mission and action plan

on steps towards establishment of Debt management has been shared within GoT to all

relevant stakeholders (technical and national debt committees). A structure of a unified

debt management office had been submitted to PO-PSM for approval.

Output 3.5: 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.

Action plan for migration towards IPSAS Accrual accounting has been prepared.

Opening balances for the financial year 2012/2013 for all MDAs were established in order

to facilitate the implementation of IPAS Accrual;

A draft of revised PFA has been circulated to stakeholders’ for comments. This revised

PFA provides for migration to IPSAS accrual among others.

250 accountants from MDAs, Regions were trained on migration to IPSAS Accrual;

13

Output 3.6: Improved accountability in management of Government Assets for supporting

migration to IPSAS Accrual

Valuation of Government assets in 16 MDAs has been conducted. ToR for consultancy

for the next phase has been drafted and waiting fund release to embark on tender process.

The ToRs for the drafting of the asset policy management have been shared. They are

approved at Government Asset Management Division (GAMD) level, and are circulated

among other stakeholders.

Implementation Status of Milestones as Per M&E Result Framework

Out of 52 milestones achievement was realized in 5 (8%) milestones, which include Procurement

Plans being a mandatory requirement for strategic and budget plans for MDAs, LGAs and

Parastatal Institutions as well as each LGA now operates only bank accounts. Satisfactory

progress (on track) was recorded in 39 (75%) milestones. These are in areas related to

compliance to 2004 PPA; review of procurement regulations to achieve Value for Money in

public procurement; capacity building to PPRA; preparation for e-procurement; development of

National Public Procurement Policy; capacity building on Cash Management; updating IPSAS

guidelines from Cash to Accrual accounting; and improvement on accountability in Government

Asset Management.

About four (8%) milestones were at pending status due a number of factors including the action

plan for implementing the 2011 PPA, training strategy and plan for public procurement cadre as

well as approval of TORs for the uploading 16 MDAs in EPICOR. Establishment of Debt

Management Department was awaiting approval of PO -PSM. Four (8%) milestone were at risk.

Figure 3 below depicts the schematic presentation for KRA 3 status as at December, 2012.

14

Achived 10%

On Track 75%

At Risk 8%

Pending 8%

Figure 3: KRA 3 Milestone Status

KRA 4: Budget Control and Oversight

Objective: Improved adherence and enforcing of MDAs and LGAs to financial internal controls,

rules, laws, regulations and audit recommendations by June 2016

Output 4.1: Increased coverage and quality of the internal audit functions by 2016

Internal audit operational plan for 2012/13-2016/17 have been developed and submitted

to PS for approval.

Internal Audit manuals for LGAs and MDAs to ensure consistency with the International

Practice Framework (IPPF) have been reviewed.

Survey to identify weaknesses of MDAs audit committees was conducted.

Training Needs Assessment and training plan in risk management and risk based audit

has been developed. Guidelines on implementation of institutional risk management

framework were being developed.

20 champions were trained on audit systems as well as 20 champions were trained on risk

management in the Public Sector

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Output 4.2: Strengthened External audit functions by 2016

The report which outlined the findings and recommendations on the legal amendments

(existing laws) which impede independence of the NAOT has been submitted to the

Attorney General’s Office

An AFROSAI-E team undertook an assessment of NAO`s performance in September,

2012. It is anticipated that the official response from AFROSAI-E upgrading NAO to

AFROSAI-E level 3 will be received in the next quarter.

5 Performance audits were conducted using internal coaching

Alignment of audit methodology is progressing well, with ISSAIs guidelines already in

place

The scoping study to ascertain the parameters of the outstanding matters database was

on-going with completion foreseen in the fourth quarter.

National Audit Office Head Quarter is now connected to its 10 Regional Offices.

Action plan for activating four Team Mate modules to increase its application in auditing

was developed.

The Training Needs Assessment has been undertaken and training policy has been shared

to stakeholders

Output 4.4: Improved performance of parastatals by June 2016

The 10 pilot which will sign the performance contract have been selected based on the

turnover, size and strategic importance.

Database on parastatals has been designed and currently data has been entered into the

Treasury Registrar Information System (TRIMS). However, the reports are expected to

be issued at the end of current year

Implementation Status of Milestones as per M&E Result Framework

During the period, one milestone (4%) was achieved, 21 milestones (84%) were on track and

three (12%) was pending. Milestone achievement was recorded in area of production of Value

for Money audit reports annually. Milestones at on track status included areas of increasing areas

of internal audit functions, development of Internal Audit Manual, capacity building in

computerized auditing, enhancing accountability on parastatals performance and production of

citizen audit reports. Figure 4 below depict milestone status for KRA 4 by mid-year 2012/13.

16

KRA 5 – Change Management, Programme Monitoring and Communication

Objective: Improved management practices with increased accountability and leadership to

better manage performance of PFMRP.

Output 5.1: Coordinate Integration, interfacing and rationalization of Government financial

systems.

The selection of the consultant for the ICT mapping study will be finalized by January

2013 and thereafter the inception report will be prepared.

Output 5.2: Utilization of EPICOR modules increased from seven to ten

EPICOR system has been upgraded from version 7.3.5 to version 9.05 with 7 modules

installed of which 6 are activated

Training to 40 ACCGEN staff and 381 end users was undertaken on the new version of

EPICOR.

Output 5.3: All software development and module upgrades are coordinated with the

overarching plans for ICT integration

The three year operational plan is in place and training for 15 DFIMS staff was

undertaken

17

Output 5.4: Improved communication and public access to key fiscal information to

stakeholders

The approved National Budget was published on Ministry of Finance website by

September 2012 and Citizens budget October, 2012

Draft MoF Communication Strategy was prepared;

Output 5.5: Coordination and Standardization of PFM Training Achieved.

ToRs for conducting a PFM training mapping exercise were prepared and a study will be

conducted in the third quarter covering 29 ministries, 14 regions and 28 district councils

from those selected regions.

Output 5.6: PFMRP Component Managers are being guided by detailed multi-year

operating plans

A five year operating work plan has been developed and is intended to be updated when

preparing the next financial years plans.

Output 5.11: PFMRP implemented efficiently and effectively through result based management

approach.

The Joint Supervision Mission for 2012 was conducted in September as scheduled. The

report was prepared and approved by JSC.

Output 5.12: National systems and processes for intergovernmental transfers to LGAs

Streamlined and rationalized

Preparation of ToRs was completed by end of July 2012 and advertisement calling for

interested consultant appeared in the news paper on August 2012. The consultant for the

mapping study was hired early December 2012.

Implementation Status of Milestones as Per M&E Result Framework

Achievement was recorded in four milestones (9%) covering areas of upgrading EPICOR

software, transparency in budget management through publication on MoF website (National

budget, citizen budget, end-year budget out-turn report); coordination of plans for ICT

integration; timely update of MoF website and; consultative PFM Reform management process

through annual supervision mission.

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Satisfactory progress on milestones represented as on track were by 27 (59%). These cover the

areas of capacity building and linking MoF IFMIS to PMO-RALG IFMS for immediate

capturing of budget and exchequer transfer to RSs and LGAs respectively; development of

MoF Communication Strategy; development of a comprehensive training programme on change

management and result based management and; timeliness of PFMRP dialogue structure.

14 (30%) milestones were on pending status. These included those related to delay such as ICT

mapping exercise; MoF training mapping exercise; prolonged Secretariat recruitment exercise;

Development of Action Plan on transition to accrual accounting by IAG and ACGEN and;

mapping of system and process for intergovernmental transfer of funds. One (2%) milestone is

on risk status. Figure 5 below depicts the schematic presentation for KRA 5 status as at

December, 2012.

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CHAPTER THREE

BUDGET EXECUTION

3.1 Funds Disbursement and Release

The approved budget for FY 2012/13 is Tshs. 33,597,704,853 of which Tshs. 3,996,904,853 is

Project funds, Tshs. 16,250,000,000 is Government funds and Tshs. 13,350,800,000 is Basket

Funds. Source of Basket Funds and the status on disbursement is shown in table 3.1 below.

Table 3.1: Basket Funds Disbursement by Development Partners FY 2012/13

July – December 2012

DP

DPs Local

Currency

(Million)

Amount

in (USD

Million)

Amount

in (Tshs.

Million)

Actual Disbursement

Date

Amount

USD

Amount in

(Tshs.

Million)

DFID 2.00GBP 3.20 4,960.00 29.11.2012 1.60 2,530.27

KFW 0.69EUR 0.92 1,426.00 24.12.2012 1.06 1,673.06

Canada 1.00CAD 1.00 1,550.00 - - -

DANIDA 13.01DKK 2.19 3,394.50 11.10.2012 1.99 3,140.16

Ireland 1.00EUR 1.34 2,077.00 05.10.2012 1.29 2,036.95

Total 8.65 13,407.50 5.95 9,380.44

3.2 Fund flows

The available Basket Fund in the holding account was Tshs. 10,461,078,608 of which Tshs.

886,496,043 was opening balance, Tshs. 194,142,145 was unspent balance returned by

components and Tshs. 9,380,440,420 was disbursement by DPs. The amount released to

components was Tshs. 2,807,045,250 as detailed in table 3.2 below.

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Table 3.2: PFMRP Basket Fund Flows FY 2012/13

July – December 2012

Date Description Amount in

USD

Amount in

Tshs

01.07.2012 (a) Opening Balance 568,483 886,496,043

Add Inflows

Returned Unspent Balances

20.07.2012 Natural Resources 7,850 12,237,667

25.07.2012 Accountant General's Department 116,680 181,904,479

(b) Unspent Balance Total 124,530 194,142,145

DP Releases

05.10.2012 Ireland 1,292,300 2,036,949,106

11.10.2012 Royal Danish 1,992,197 3,140,160,677

29.11.2012 DFID 1,601,601 2,530,273,324

24.12.2012 KFW 1,059,467 1,673,057,313

(c) DP Release Total 5,945,565 9,380,440,420

Funds Available (a+b+c) 6,638,578 10,461,078,608

Less Outflows BF `

31.08.2012 Ministry of Finance-Vote 50 349,452 545,000,000

31.08.2012 Ministry of Finance-Vote 21 64,127 100,000,000

31.10.2012 PMO-RALG 63,932 100,000,000

09.11.2012 Ministry of Finance-Vote 21 47,310 74,000,000

14.11.2012 PMO-RALG 37,624 58,865,250

14.11.2012 Ministry of Finance-Vote 50 684,939 1,071,625,000

19.11.2012 Ministry of Finance-Vote 50 228,312 357,555,000

29.11.2012 National Audit Office 319,653 500,000,000

Amount Transferred to Exchequer 1,795,349 2,807,045,250

Balance in The Holding Account as at 31

December,2012

4,843,229 7,649,588,948

Note: Holding Account Balance have been translated at Tshs. 1,579.44 per US $ as at December, 2012

21

During the period a total sum of Tshs 4,902,205,444 was released to components from

Government Funds, Basket Funds as well as Bilateral Projects. The release by sources was GoT

Tshs 2,058,325,000, Bilateral Projects Tshs. 36,835,194 and Basket Fund Tshs. 2,807,045,250

3.3 Actual Expenditure

During the period actual expenditure amounted to Tshs. 1,456,163,521 being 30% of the total

funds released. Actual expenditure by source was GoT Tshs. 592,775,065 being 29% of the

released funds; Project Tshs. 36,835,194 (100%) and Basket Funds Tshs. 826,553,262 being

29% of the released. Table 3.3 below summarizes the overall funds release against actual

expenditure for July to December 2012 period while table 3.4 shows the summary breakdown by

component recipients.

Table 3.3: PFMRP IV Fund Release and Actual Expenditure FY 2012/13

July – December 2012

SOURCE OF

FUNDS

APPROVED

BUDGET FY

2012/13

CUMMULATIVE

RELEASE

CUMMULATIVE

EXPENDITURE

% ON

RELEASE

GOT 16,250,000,000 2,058,325,000 592,775,065 29%

P 3,996,904,853 36,835,194 36,835,194 100%

BF 13,350,800,000 2,807,045,250 826,553,262 29%

GRAND

TOTAL 33,597,704,853 4,902,205,444 1,456,163,521 30%

22

Table 3.4: PFMRP IV Fund Release against Expenditure by component FY 2012/13 July –

December 2012

S/N COMPONENT SOURCE

OF FUND

APPROVED

BUDGET FY

2012/13

CUMMULATIV

E RELEASE

CUMMULATIV

E

EXPENDITURE

% ON

RELEAS

E

1 POLICY ANALYSIS DIVISION GOT 500,000,000 252,000,000 118,829,760 47%

P 1,372,610,557 0%

BF 268,000,000 100,000,000 2,948,000 3%

SUB TOTAL 2,140,610,557 852,000,000 621,777,760 73%

2 PMO-RALG GOT 300,000,000 - - 0%

BF 745,000,000 158,865,250 3,120,000 2%

SUB TOTAL 1,045,000,000 158,865,250 3,120,000 2%

3 EXTERNAL FINANCE

DIVISION

GOT 150,000,000 12,500,000 - 0%

P 95,530,473 - -

BF 115,000,000 24,000,000 0%

SUB TOTAL 360,530,473 36,500,000 - 0%

4 GOVERNMENT BUDGET

MANAGEMENT

GOT 1,500,000,000 98,800,000 - 0%

BF 470,000,000 50,000,000 0%

SUB TOTAL 1,970,000,000 148,800,000 - 0%

5 MINISTRY OF NATURAL

RESOURCES AND TOURISM

BF 127,000,000 - 0%

SUB TOTAL 127,000,000 - 0%

6 ACCGEN GOT 3,500,000,000 875,000,000 346,977,505 40%

BF 2,622,840,000 357,555,000 238,118,850 67%

SUB TOTAL 6,122,840,000 1,232,555,000 585,096,355 47%

7 PUBLIC PROCUREMENT

REGULATORY AUTHORITY

GOT 100,000,000 50,000,000 - 0%

P 2,032,520,000 36,835,194 36,835,194 100%

BF 1,317,188,000 275,000,000 89,336,412 32%

SUB TOTAL 3,449,708,000 361,835,194 126,171,606 35%

8 GOVERNMENT ASSET

MANAGEMENT

GOT 200,000,000 15,400,000 0%

BF 1,378,572,000 120,000,000 0%

SUB TOTAL 1,578,572,000 135,400,000 - 0%

23

9 INTERNAL AUDITOR

GENERAL DIVISION

GOT 300,000,000 - 0%

BF 1,323,050,000 350,000,000 - 0%

SUB TOTAL 1,623,050,000 350,000,000 - 0%

10 NATIONAL AUDIT OFFICE GOT 7,500,000,000 -

P 469,097,486 -

BF 1,654,850,000 500,000,000 343,030,000 69%

SUB TOTAL 9,623,947,486 500,000,000 343,030,000 69%

11 FINANCIAL INFORMATION

SYSTEMS MANAGEMENT

GOT 600,000,000 146,750,000 0%

BF 243,000,000 75,000,000 0%

SUB TOTAL 843,000,000 221,750,000 - 0%

12 GOVERNMENT

COMMUNICATION UNIT

GOT 200,000,000 88,500,000 34,667,800 39%

BF 276,000,000 -

SUB TOTAL 476,000,000 88,500,000 34,667,800 39%

13 ADMINISTRATION AND

GENERAL

GOT 173,500,000 3,500,000 0%

BF 107,000,000 10,000,000 0%

SUB TOTAL 280,500,000 13,500,000 - 0%

14 PLANNING DIVISION GOT 864,000,000 348,375,000 92,300,000 26%

P 27,146,337 - -

BF 1,348,500,000 486,625,000 150,000,000 31%

SUB TOTAL 2,239,646,337 835,000,000 242,300,000 29%

15 TREASURY REGISTRAR GOT 300,000,000 150,000,000 0%

BF 372,800,000 120,000,000 0%

SUB TOTAL 672,800,000 270,000,000 - 0%

16 PUBLIC PROCUREMENT

POLICY DIVISION

GOT 62,500,000 17,500,000 0%

BF 482,000,000 30,000,000 0%

SUB TOTAL 544,500,000 47,500,000 - 0%

17 ZANZIBAR BF 500,000,000 150,000,000 0%

SUB TOTAL 500,000,000 150,000,000 - 0%

GRAND TOTAL 33,597,704,853 4,902,205,444 1,456,163,521 30%

24

CHAPTER FOUR

CHALLENGES AND RECOMMENDATIONS FOR NEXT PERIOD

Challenges

1. Late release of funds delayed the start of some critical activities. The DP disbursements

were received between October and late December, 2012. However, implementation of

some activities went on and the programme was in full swing by the end of December,

2012. As such, actual expenditure will be captured in the next report. The challenges on

delays of operational funds release to components at the beginning of the fiscal year is

anticipated to be resolved under the new government budget cycle whereby, by end of

June, the Government Budget and Appropriation Bill will be approved by the Parliament

for execution from July 1st of each financial year.

2. The absence of the PFMRP GoT Secretariat to Support coordination. Given the absence,

the component managers showed dedication to ensuring activities were undertaken,

challenges addressed and information shared in TWGs and adhoc meetings.

Recommendations for next period (Jan – June 2013)

1. To build on the pace of PFMRP implementation, TWGs will continue to meet on a

regular basis to review emerging implementation constraints. Information sharing is to be

enhanced for smooth coordination to streamline Action Plan and Cash Flows.

2. Components are encouraged to undertake comprehensive capacity assessment in terms of

working tools and technical skills for the work load and nature of activities as per

milestone targets.

3. Linked to above, all stakeholders will begin to prepare the ground work (agreements) on

the possible revision of targets in the M&E framework so as to ensure that the process is

completed in

4. Given that a number of reform areas are dependent on legislative amendments, the TWGs

will endeavor to list their pending respective legislative so that top management can be

informed to take appropriate action.

25

It is anticipated that flow of operational funds to components will improve in the third quarter

and thus implementation pace will have fully picked up. Government is committed to strengthen

and improve coordination of PFM reform agenda and stakeholders are encouraged to take an

active role to support and embrace results-oriented reforms interventions. The DPs, basket fund

and project contributors, share a common interest in ensuring synergy of efforts and resources in

a view to facilitate a smooth implementation of the programme.

An important development and exercise for the next period will be the repeat (third) assessments

of the PFM system at both central and local government through the PEFA assessments. The

GoT, jointly with the DPs, is committed to applying PEFA as a means of monitoring

improvements in Public Finance Management (PFM) in the country. The assessment process and

the PEFA report will be monitored and endorsed by the PFMRP through the Joint Steering

Committee (JSC) with PEFA secretariat verification checks along the process.

26

Annex A1

PROCUREMENT MID-YEAR PROCUREMENT REPORT

FOR FY 2012/13

A: CONSULTANCY SERVICES

S/N Description Local (Tzs) Foreign

(Tzs)

Total

amount

(Tzs) Sel

ecti

on

Met

hod

Implementation status as

on 31th December, 2012

1.01 Development, installation and operationzalize of a

non taxed revenue collection system

- 58,000,000 58,000,000 IC Draft of TOR done

1.02 Undertake a study to identify major revenue

sources at LGAs

- 150,000,000 150,000,000 QCBS Not initiated

1.03 Undertake 10 PER thematic studies conducted - 80,000,000 80,000,000 CQ Not initiated

1.04 Revise Standard Bidding documents and other

Procurement Implementation tools in line with

PPA, 2011

- 36,350,000 36,350,000 IC EOI received on 5.12.2012,

short listing process on

progress

1.05 Carry out procurement audits to determine the

level of compliance to the PPA

-

934,750,000

934,750,000

IC EOI received on 5.12.2012,

short listing process on

progress

1.06 Survey and update database on average prices of

goods and services in collaboration with GPSA

- 55,900,000 55,900,000 IC EOI received on 5.12.2012,

short listing process on

progress

27

1.07 Prepare JAST II and AMP user guidelines and

disseminate

115,000,000 - 115,000,000 ISS Not initiated

1.08 Conduct Training Needs Assessment for TRs - 142,800,000 142,800,000 QCBS Not initiated

1.09 Conduct capacity and training needs assessment

for Procurement and Supplies Staff in the

Government Sector

19,000,000

159,000,000

178,000,000

QCBS Draft TOR prepared

1.10 Develop human resource structure for

procurement and supplies staff in the public sector

8,000,000 65,000,000 73,000,000 CQ Not initiated

1.11 Preparation of Public Procurement Policy 10,000,000 33,000,000 43,000,000 On-

Going

On-going

1.12 Review public procurement systems - 20,000,000 20,000,000 IC Not initiated

1.13 Provide Consultation and training on debt

management legal framework

- 278,000,000 278,000,000 QCBS Not initiated

1.14 Development of Assets Management Policy 15,700,000 150,000,000 165,700,000 QCBS RFP Submitted to user dpt

1.15 Valuation of Government assets 15,700,000 866,000,000 881,700,000 QCBS On-going

1.16 Uploading 16 MDAs in EPICOR 16,000,000 50,000,000 66,000,000 SS RFP Submitted to user dpt

1.17 Review and streamline Risk Management process

in PFA

-

71,000,000

71,000,000

CQ Preparation of TORs

1.18 Conduct mapping exercise on software and

hardware infrastructure

155,000,000 157,000,000 312,000,000 QCBS Contract Preparation

1.19 Develop MoF communication strategy 200,000,000 66,000,000 266,000,000 QCBS RFP Submitted to user dpt

28

1.20 Conduct TNA and mapping exercise for PFM

training

15,000,000 80,000,000 95,000,000 CQ Not initiated

1.21 Conduct annual financial Audit - 45,000,000 45,000,000 CQ Not initiated

1.22 Conduct annual procurement Audit - 50,000,000 50,000,000 CQ Not initiated

1.23 Conduct Surveys to ensure the KRA teams and

JSC Members are actually working

-

88,000,000

88,000,000

CQ Preparation of TORs

1.24 Undertake study and review the system and

process of fund transfers to MDAs, RSs and

LGAs

- 224,000,000 224,000,000 QCBS Contract Preparation

1.25 Train internal auditors on how to audit

development projects

- 20,000,000 20,000,000 IC Not initiated

1.26 Facilitate 3 stakeholders workshop on the new TR

draft Bil

- 15,000,000 15,000,000 IC Not initiated

1.27 Facilitate consultative meeting with key

stakeholders to identify legislative and policy

supports

- 14,000,000 14,000,000 IC Not initiated

1.28 Facilitate PFMRP Co-ordination Unit - 700,000,000 700,000,000 IC Not initiated

1.29 Improvement of Financial reports in LGAs - 200,220,000 200,220,000 QCBS Will be undertaken

internally. Justification to

be submitted

29

1.30 Set out systems to ensure proper management and

control of revenue collections and reporting in the

LGAs

-

169,000,000

169,000,000

QCBS Draft TOR prepared

1.31 Development of Debt Management Policy - 263,200,000 263,200,000 QCBS Not initiated

1.32 Engage a consultant for the development and

implementation of the plan (to move from IPSAS

Cash Basis to IPSAS Accrual)

- 50,000,000 50,000,000 IC Not initiated

1.33 Build capacity on development of business

operations and support for the Government IFMS

-

202,520,000

202,520,000

QCBS On-going

1.34 Train IFMS end users on the upgraded modules - 94,000,000 94,000,000 SS Not initiated

1.35 Construction of two office buildings 400,000,000 - 400,000,000 On-

going

On-going

1.36 Train 200 auditors on Risk based audit - 154,000,000 154,000,000 CQ Not initiated

1.37 Train 100 auditors on IT audit - 146,000,000 146,000,000 IC Not initiated

1.38 Conduct special audit of National budget - 123,000,000 123,000,000 CQ Not initiated

1.39 Establish system (electronic database) for

tracking ongoing and outstanding audit

recommendations

- 150,000,000 150,000,000 QCBS Not initiated

1.40 Develop and implement Zanzibar PFMRP Strategy - 500,000,000 500,000,000 QCBS Not initiated

30

B: GOODS

S/N Description Local (Tzs) Foreign

(Tzs)

Total

amount

(Tzs)

Select

ion

Meth

od

Implementation status as

on 31th December, 2012

2.01 Servers and computer software for

operationzalization of a non taxed revenue

collection system

- 60,000,000 69,000,000 NCB Not initiated

2.02 Information technology and office equipment - 175,000,000 175,000,000 NCB Not initiated

2.03 Information technology and office equipment - 12,000,000 26,500,000 NCB Not initiated

2.04 Furniture - 6,000,000 6,000,000 NS Not initiated

2.05 Information technology and office equipment - 18,000,000 19,500,000 GPSA Not initiated

2.06 Scientific Equipment - 9,000,000 9,000,000 NS Not initiated

2.07 Information technology and office equipment - 45,000,000 GPSA Not initiated

2.08 Office equipment and furniture - 6,500,000 GPSA Not initiated

2.09 Motor vehicles 100,000,000 100,000,000 NCB Evaluation of Bids

2.10 Motor vehicles 100,000,000 100,000,000 NCB Not initiated

31

C:NON- CONSULTANCY SERVICES

S/N Description Local (Tzs) Foreign

(Tzs)

Total amount

(Tzs)

Sel

ecti

on

Met

hod

Implementation status as

on 31th December, 2012

3.01 Acquisition of software and installation

of Assets Management(tracking)

software-ASSET AUDITOR

4,000,000 118,000,000 122,000,000 NCB Not initiated

3.02 Update SBAS tool to enhance

resources allocation

- 20,000,000 20,000,000 On-

going

Not initiated

3.03 Acquisition of audit software tools and

license fees

- 140,000,000 140,000,000 NCB Not initiated

3.04 Installation and connection of gadgets

for Wide Area Net work to regional

Offices

- 177,000,000 177,000,000 NCB Preparation of schedule of

requirement on progress

3.05 Install and service set up and

connection of the system

- 79,000,000 79,000,000 NCB Not initiated

3.06 Upgrading of Epicor from version 7.3.5

to version 9.05 with three additional

modules

- 350,000,000 350,000,000 SS Not initiated

32

D: WORKS

S/N Description Local (Tzs) Foreign

(Tzs)

Total amount

(Tzs)

Sel

ecti

on

Met

hod

Implementation status as

on 31th December, 2012

4.01 Refurbishment of Zonal offices in

Arusha, Iringa and Mwanza

100,000,000

- 100,000,000 NCB Not initiated

4.02 Construction of two office buildings

7,000,000,000

- 7,000,000,000 ICB Sumbawanga 6%, Dodoma

20% of works

accomplished

4.03 Construction of office accommodation

in Dodoma Sub-Treasury

3,500,000,000

- 3,500,000,000 On-

going

95% of construction

completed

33

Annex 2: PFMRP SEMI-ANNUAL REPORT 2012/13

PFMRP IV M&E RESULT FRAMEWORK 2012 – 2017

STATUS AS AT 31 DECEMBER 2012

KRA 1: Revenue Management

CODE: MILE STONE DESCRIPTIONS STATUS COMMENTS ON THE STATUS

RESPONSIBLE

COMPONENT

Output 1.1: Improved quality of forecasting of fiscal aggregates for three years on a rolling basis

1.1.1 Study on forecasting targets and actual revenue

collection by June 2013

Pending Pending subject to the review of the milestone. The

supervision mission of Sept 2012 agreed that there is a

need to review Output 1.1 (June 2013) (no budget

envisaged) and that there is a need for reviewed

milestones and activities to be formulated.

PAD

1.1.2 Recommendations from study on forecasting targets

and actual revenue collection informs budget

preparations for budget 2014/15.

Pending Pending subject to the review of the output and the

milestone above.

PAD

1.1.3 A team of trainers in revenue forecasting developed

by June 2014 (The milestone to be reviewed in line

with recommendation from the study)

On track Target within reach. Priority will be given to those

MDA’s with higher revenue potential (5 MDA’s

suggested to be chosen (including MEM and MNRT).

Training for LGA’s is also found to be very important,

but potentially also costly. With limited resources, there

PAD

34

is need for prioritization and possibly sequencing on

LGA level. Ambition is to train (abroad) 2 persons

from MoF and 2 from TRA in order to hold training

sessions for other staff in-house.

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

1.2.1 The study on Non Tax Revenue (NTR) -“Integration

and Harmonization of Revenue Collection Systems”

completed by November 2013.

On track Non-tax revenue study is progressing. An inception

report has been discussed with key stakeholders

(income-generating MDA’s).

PAD

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

November 2013

On

Track.

Cabinet approval process is on-going. Comment from

first presentation incorporated for second round

presentation to Inter-ministerial Technical Committee

(Permanent Secretaries). It is expected that Cabinet

approval and Attorney General verification will be done

early in third quarter for the draft Act to be submitted to

Parliament in April, 2013. ( These activities are

supported by Norwegian Funding)

PAD

1.2.3 Review laws, rules and regulations for local

government revenue system to improve LGA own

sources in line with best practice by June, 2016

On-Track The review of LGA legislation is treated below in

output 1.3

PMO-RALG

1.2.4 Take policy action to improve revenue mobilization On-Track Target within reach. MNRT

35

from natural resource sectors by June, 2014

1.2.5 The action plan to implement the recommendations

from review of non tax collection developed and

implemented by June 2016

At risk Milestone needs to be revised. Agreed to include an

interim milestone in order to track progress, so that the

action plan should be developed by June 2014, while

implementation of the plan is still assessed in 2016.

PAD

1.2.6 Computerized revenue collection to at least 50% of

participating MDAs and LGAs by 2016

On track A clearer definition of computerization is required

while MDA’s and LGA’s clearly see the need for

increased use of ICT as collection method. The non-tax

study (see above milestone) partly addresses the issue,

yet the milestone needs to be revisited once the study is

finalized and the action plan developed.

According to MNRT, the TORs for the non-tax revenue

collection study (photographic) were developed using

OC budget and shared with MoF - Planning Division. It

should be noted that a non-tax automated system for

hunting collection has been in use since July 2012

financed by OC funds.

PAD/MNRT

1.2.7 New TR's Bill presented to the Parliament by June

2013

On Track The draft has been sent to Cabinet for an initial review. TR

1.2.8 150 Parastatals' Act Reviewed to be in line with the

New TR Act by June 2014

On Track Once the TR bill is passed the Review of individual

parastatals’ Acts will begin. However, areas of conflict

TR

36

between TR Act and the various legislations have been

identified.

1.2.9 TR's Office Capacities enhanced by June 2015 On Track TR has requested approval of 50 specialized staff on

top of the current 56 staff as the organizational structure

provides for 205. The need for a medium and long-term

capacity development, office retooling and training plan

was underlined.

TR

1.2.10 M& E system for Parastatals reviewed and

implemented by June 2015

On track There is no progress on this milestone as the TR bill is

in process. However, it was recommended that TR

reviews this milestone together with 4.4.3 and 4.4.4 as

these three milestones seem to refer to the same

monitoring framework/M&E system

TR

1.2.11 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 The process of amending the VAT act is progressing

with TA being provided by IMF (missions in July and

Oct 2012). The revised Act is expected to be approved

by cabinet by November 2013. It is recognized that

incorporation of changes in the FY 2013/2014 budget

will be unlikely. It has further been decided to conduct

a broader PER on the costs and benefits of tax

exemptions. This study will probably be available from

May/June 2013.

CPAD

37

Output 1.3: Strengthened capacity of local government authorities to collect revenue by 2015

1.3.1 Completed assessment and evaluation of revenue

potential for major sources of revenue to all LGAs by

June 2014

At risk The draft ToRs for hiring a consultant were prepared.

Given the limited budget, it was found not possible to

assess all sources in all LGA’s. As such, a

representative sample selection is being considered and

the PMORALG will undertake the assessment in house.

PMO-RALG

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, June 2013

On Track PMORALG is in contact with TRA about using

consultants from the Tax Training Institute to carry out

the training in revenue plans and budgets. Budget

constraints might put the milestone at risk.

PMO-RALG

1.3.3 Local Authorities Tax administration teaching and

practice modules established and TOT completed for

all finance management staff at the regional levels.

At Risk This activity depends on the activity above concerning

Training through TRA

PMO-RALG

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 in every

two years.

Pending The planned training on own sources of revenue will

only start after the study/assessment is done

PMO-RALG

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

At risk The database is supposed to be developed based on the

study outcomes and will encompass sources, rates,

potentials, budget, and collection methods among

others. However, the activity is only scheduled to be

PMO-RALG

38

implemented in the next FY.

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

At risk The PMO-RALG directorate of Legal services has

started to review Local Government Finance Act. By

Dec 2012, there was taskforce appointed to analyze the

weaknesses of the current Local Government Finance

Act.

PMO-RALG

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 February 2014

At Risk This activity depends on the finalization of the study on

the effectiveness, relevancy and sufficiency of the

provisions of the Local Government Finances Act.

PMO-RALG

Output 1.4: Increase of Donor funding that flows through the exchequer system by 2016

1.4.1 National framework for managing development

cooperation (JAST) be reviewed and put in operation

by December 2012

Delayed The Development Framework Contract - DCF

(successor to JAST I) process was on-going but the

need for broad consultations has required that the

deadline is rescheduled to Nov 2013.

EFD

1.4.2 Revised JAST and AMP user guideline clearly

communicated to both parties by December 2012

Delayed The content of the proposed revision of DCF and AMP

needs to be further defined and the milestone should

possibly be split into two separate activities – one is the

AMP guidelines, which are updated every year and

needs to continuously be disseminated to DP’s, MDA’s,

LGA’s, RS’s, NSA’s etc. The other activity being the

action plan for the DCF.

EFD

39

1.4.3 Analysis of the trends of the direct project fund

portfolio disbursed via exchequer system published

and shared annually by June 2015

On Track The annual report of trends will be available already

this year (target was 2015) as it can now be generated

from the AMP and published every year in October.

EFD

KRA 2: Planning and Budgeting:

Output 2.1: Strengthened capacity of MDAs, RSs and LGAs in implementing program based budgeting by June 2016.

2.1.1 All Sub programs, program objectives and

performance indicators defined by December 2012

On Track Programs and sub-programs have been (tentatively)

defined and objectives, outputs and performance

indicators were developed from MKUKUTA II and

FYDP

GBD

2.1.2 Chart of Accounts modified to accommodate program

based budgeting

Achieved Done GBD

2.1.3 MTEF reviewed to make program based budget

compatible by September 2014

On Track Target within reach GBD

2.1.4 Progress on the PB Action plan implementation On Track Action Plan to move to PBB (Program Based

Budgeting) is in place and the work has started.

GBD

2.1.5 Completed phased training for all MDAs and RSs by

June 2014

On track Will be conducted next year GBD

2.1.6 Completed phased training for all LGAs by June 2014 On track Refer action plan GBD

Output 2.2:Increased effective utilization of Planning and budgeting tools by 2016

2.2.1 MTSPBM reviewed by June 2013 On track SBAS tool updated and used for 2013/14 budget

preparation.

GBD

40

2.2.2 Sixty MDAs, 21 RSs and 133 LGA trained in

MTSPBM by June 2014

On track Review will be followed by change of manual and

training of stakeholders. Training will be done by

facilitation team;

GBD

2.2.3 Reviewed MTSPBM to be applied during FY 2013/14 On track Some of the features MTSPBM has been applied for

FY 13/14. Review is expected in the last quarter of the

financial year because of new budget cycle has affected

completion of the activity.

GBD

2.2.4 Annexes to budget book volume II for Executive

Agencies completed by June 2014

On Track GoT will introduce more details on expenditures of

public institutions that partially depend on GoT budget

such as TRA, University, etc

GBD

2.2.5 Action plan on implementation of recommendations

on budget legal framework completed by June 2013

On track Studies have been undertaken in view of a specific

budget law.

GBD

2.2.6 At least 10 PER Main Dialogue meetings held by June

2016

On Track PER Main dialogue process conducted that culminates

at the annual meeting held in November 2012.

GBD

2.2.7 Phased training to MDAs, RSs and LGAs Budget

Committees on resources prioritization and planning

On Track Training on resources prioritization and planning was

undertaken for members of budget committee in

selected RSs and LGAs

GBD

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)

On track It was agreed to take PEFA study 2009/10 and PEFA

methodology paper as starting point. Upcoming PEFA

study March 2013 guided by a Task Force includes

MoF staff for capacity building.

GBD

41

established by June 2013

Output 2.3: Strengthened capacity of LGAs for MTEF preparation by 2015

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.

Pending This milestone has to be reviewed PMO-RALG

2.3.2 Recommendations of various studies on LGAs budget

allocation formula reviewed by December, 2012

Delayed The consultancy to conduct a review study is yet to be

initiated to enable revision and full application of LGA

budget allocations formulae. The ToRs are to take into

account the intended transition to PBB. The funding of

this activity was delayed.

PMO-RALG

2.3.3 Agreement on improvement of LGAs budget

allocation formulas among the sector Ministry

(PMORALG, MOF, PO-PSM and Sectors) completed

by June 2013

At risk Delayed awaiting completion of Recommendations of

various studies on LGAs budget allocation formula.

However, no funds were received for this activity by

Dec 2012. Consultation done with PMO – RALG

technical advisors to see how best the activity can be

conducted.

PMO-RALG

2.3.4 All LGAs budget allocation formulae reviewed by

June, 2014

Pending Awaiting completion of recommendations of various

studies on LGAs budget allocation formula.

Implementation is scheduled for next FY.

PMO-RALG

2.3.5 All reviewed LGAs budget allocation formulae applied

in the budget preparation during 2014/15 for the FY

On track Awaiting completion of recommendations of various

studies on LGAs budget allocation formula.

PMO-RALG

42

2015/16 budget. Implementation is scheduled for later years.

2.3.6 Monitoring arrangements are in place for measuring

deviations in actual releases against all formula-based

allocations to LGAs by June 2015.

On track Awaiting completion of recommendations of various

studies on LGAs budget allocation formula.

Implementation is scheduled for other FY

PMO-RALG

KRA 3: Budget Execution, Transparency and Accountability

Output 3.1 Improved public procurement performance by PEs by June 2015

3.1.1 Annual PPRA audit results confirm positive trend on a

yearly basis

On Track Annual audit results indicate positive trend based on

compliance (status 2012: 74%)

PPRA

3.1.2 Revised Procurement Implementation and monitoring

tools issued by December 2013

On track Implementation and monitoring tools based on new

regulations prepared.

PPRA

3.1.3 New Public Procurement Act, 2011, Regulations and

Tools disseminated to major PE's and other

stakeholders by December 2015

On Track Procurement Regulation and implementation tools will

be revised to align with the new Act expected to be

ready by late 2013.

PPRA

3.1.4 Procurement Plans aligned with MDAs, LGAs and

Parastatals Institutional Strategic Plans by June 2015

Achieved It has been made mandatory that Public Procurement

Plan to be part of Strategic Plan and Budget Plan.

PPRA

3.1.5 Value for money procurement enhanced by

Framework contracts for common use items and

services by June 2017

On Track The on-going Audit has conducted Value for Money

Audit for 30 PEs. Selection of consultant to undertake a

study on average pricing as part of the activity will be

completed on May 2013.

PPRA

3.1.6 PPRA operational and outreach capacity strengthened

by June 2014

On Track There is on-going recruitment of staff and providing

training to existing staff. Moreover, PPRA expects to

PPRA

43

open zonal offices and employ up to 141 staff from

current 52 staff. Recruitment of 1 manager for

performance contracts undertaken.

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

On Track About 302 PEs have been connected. PPRA has a plan

of providing tender portal, which is within PMIS

(funded by AfDB).

PPRA

3.1.8 e-procurement will start functioning as pilot stage by

Nov. 2016

On Track A feasibility study was carried out to move from paper

based to e-procurement. Inputs provided to MoF on

regulations on e-procurement. The draft TOR have

prepared for consultancy on details of e-procurement

system.

PPRA

3.1.9 393 PEs audited by June 2013 Achieved Done with the exception of PEs within newly

established districts.

PPRA

3.1.10 Follow up audit of 100 PEs to be done annually by

2016

On Track With expected zonal offices and staff easy to make

follow up audit.

PPRA

3.1.11 Annual Procurement Performance Evaluation Report

prepared and published annually

On Track Issued all reports on all 106 PEs and also VfM audits

for 136 projects in 30 PEs. Actual Annual procurement

performance evaluation report has been submitted to

the Minister.

PPRA

Output 3.2: Strengthening public sector procurement by June 2015

3.2.1 Action Plan for implementing Public Procurement Act Delayed Pending written action plan. Collaboration between PPRA

44

is developed by December 2012 (Milestone to be

revised after finalization of action plan)

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.

3.2.2 New public procurement regulations prepared and

issued by June 2013

On Track Parliament passed the law in 2011 and the draft

regulations prepared which are currently with the

Attorney General’s office for verification. The Minister

will then finalize the regulations, present them before

the Parliamentary Committee responsible for Finance

and Economic Affairs. The regulations become

effective after being gazetted.

PPD

3.2.3 Procurement training needs assessment exercise

completed by June, 2013

On Track A ToR has been written for a consultant to do the

training needs assessment exercise

PPD

3.2.4 [300] procurement staff trained on public procurement

by June 2017 as per TNA.

Pending The numbers and type of training will be revisited

depending on the findings and the recommendations of

the TNA.

PPD

3.2.5 Strategy on public procurement human resource

management developed and disseminated by June,

2015

Pending Focus on strategy to be revised to focus on how

organizational structures within procurement

management units should look. However, there is a

proposal to correctly phrase the milestone as “Strategy

PPD

45

to develop PMU structures in Public Sector by June, 2015”

3.2.6 Procurement and supplies staff database maintained

and updated by December, 2015

On Track The staff database already exists and has registered

about 824 procurement and supplies staff in central and

local government. This is a continuing task as it will be

updated periodically.

PPD

3.2.7 National procurement policy draft is finalized by June

2013

On Track The national procurement policy draft will explain the

PPA and covers central and local government. A

consultant has been hired from University of Dar es

Salaam and has submitted a framework paper.

PPD

3.2.8 Stakeholders’ comments incorporated by June, 2013

On track After discussion of framework paper, a first draft for

comments will be circulated. Comments will be sought

using meetings, websites and newspapers.

PPD

3.2.9 PPDs' office and staff capacity enhanced by June, 2013 On Track PPD will offer training on public procurement policies

for those with relevant responsibilities. PPD currently

has 18 staff. Training foreseen for following quarters.

PPD

3.2.10

-

3.2.17

The following milestones are related to the final

national procurement policy:

20 members of PPD staff equipped with skills on

public policy formulation, implementation and

evaluation by June, 2013

National procurement policy developed and shared

On track Waiting for the processes on draft procurement policy

to be finalized.

PPD

46

by December, 2014

National procurement policy (NPP) strategy

developed and implemented by June 2015

Printing and uploading the NPP on the website by

June, 2015

National procurement policy and procurement law

synchronized by June, 2015

Monitoring the implementation of the National

procurement policy by June, 2015

Evaluation and feedback of the implementation of the

National procurement policy by June, 2016

1000 Stakeholders acquainted with the National

procurement Policy by June, 2016

Output 3.3:Strengthened capacity of MDAs Rs and LGAs in Cash Management by 2015

3.3.1 600 staff of MDAs and LGAs Trained on cash

Management using standardized materials by June 30

2014( Milestones to be reviewed and aligned after the

East AFRITAC recommendations on Cash and

Banking Arrangement Mission)

On Track Milestone is within reach. However the focus for the

period was for staff to update database.

ACGEN

3.3.2 Six bank accounts operated by each LGA by

December, 2013

Achieved Each LGA operates six accounts ACGEN

47

Output 3.4: Strengthened Public Debt Management Capacity by 2015

3.4.1

The agreed actions arising from the Feb. 2012 World

Bank debt management report shared with key

stakeholders by July 31, 2012

Achieved The debt management report from WB Debt

management mission and action plan on steps towards

establishment of Debt management has been shared

within GoT to all relevant stakeholders (technical and

national debt committees). Accomplished by Sept 2012.

PAD

3.4.2 Debt management policy developed and shared by

June 2013

At risk Currently, awaiting the approval of new MoF structure

from PO-PSM to undertake activities. There is a need

to consider possible conflicting legal frameworks under

PPP Act and Loans and Guarantees Act. The unit has a

policy, the idea was to develop a strategy and not a

policy (Milestone has to be revised)

PAD

3.4.3 Capacity of 50 Public Debt management staff

enhanced by June 2014

At risk For ACCGEN part, Debt Management training needs

will be decided after establishment of the debt

management office (DMO). This milestone will kick

off in FY 2013/14

PAD,

ACCGEN

3.4.4 Reviewed Government Loans, Guarantees and Grants

Act by June 2014

At risk Currently, awaiting the approval of new MoF structure

from PO-PSM to undertake activities. There is a need

to consider possible conflicting legal frameworks under

PPP Act and Loans and Guarantees Act.

PAD

3.4.5 Debt Management department established by June On Track Currently, awaiting the approval of new MoF structure PAD

48

2016. from PO-PSM to undertake activities

Output 3.5: Improved Integrity and content of government financial statements and migration from IPSAS cash Basis to

IPSAS accrual is progressing in accordance with the plans.

3.5.1 Completed review of the IPSAS guideline issued by

PMORALG in 2008/09 to accommodate the recent

IPSAS updates by June 2013

On Track The ACCGEN, DGAM, RSs and LGAs clearly

demonstrated, (under ACCGEN leadership) that work

was roughly on track to transition to accrual

accounting. This strategy embraces an analysis of

strength and weaknesses of the past implementation of

IPSAS accrual at local level. However, there is a need

to relook this milestone as an Accounting manual is still

necessary while no IPSAS guideline available.

ACGEN

3.5.2 Training to MDAs, RSs and LGAs accounting officers

to develop awareness on IPSAS Accrual by 2013

At risk Training will be undertaken in the FY 2013/14. As for

the funds available now the priority is to train staff

directly involved in the preparation of Financial

Statements in the MDAs involved in the project so that

target on IPSAS accrual accounting is met.

ACGEN

3.5.3 Capacity building to 250 staffs from MDAs, RSs and

embassies to enhance skills in IPSAS Accrual by 2014.

On track Target within reach ACCGEN

3.5.4 Public Finance Act.No.6 of 2001 and regulations

reviewed by 2016

On track A draft of the revised PFA is ready and currently is

being circulated for Stakeholders’ comments since

August 2012.

ACGEN

49

3.5.5 Consolidated template of financial statements to

include MDAs, Rs, LGAs, Controlled entities and

GBEs developed by June 2016

On track Up to Dec 2012, the work on the Financial Statements

templates was still going on .It is expected that by June

2013 the templates for MDAs and Rs will be ready.

ACGEN

3.5.6 250 government accountants in MDAs /LGAs trained

in IPSAS accrual and accrual modules for Epicor by

September 2013

achieved Done ACGEN

3.5.7 Plan for migration towards IPSAS Accrual accounting

is completed by December 2013.

On track Roadmap and consolidated tree is in place ACGEN

3.5.8 Plan is approved for execution and stakeholder

information sessions have been completed by January

2014

On track Plan has been approved and awareness been done to

some of the stakeholders (e.g. PAC members). Other

groups will follow

ACGEN

3.5.9 All legislative and policy supports have been identified

by 31st Dec.2014

On track Some of the legislative and policy supports have been

identified as accounting policy, PFA, Accounting

manual, LGF act and TR act.

ACGEN

3.5.10 Milestones for the transition have been identified and

approved E.g. Public Finance Act No.2001 and

Regulations amendments by October 2014

On track Some milestones have been identified ACGEN

3.5.11 Plan to integrate all Rs and LGAs operation into

centralized IPSAS accrual architecture is completed

and PMO-RALG is fully engaged as stakeholder by

31st Dec.2014

On track Roadmap and consolidated tree is in place ACGEN

50

Output 3.6: Improve accountability in management of Government asset management for supporting migration to IPSAS

Accrual

3.6.1 Uploading of 16 additional MDAs in EPICOR by

December 2012

Delayed Waiting for approval of ToRs to start uploading the 16

MDAs, which were valued before the division entered

into the programme (PFMRP).

NOTE: 36 MDAs were valued and but only 20 were

uploaded in EPICOR, these was before GAMD joined

the programme.

GAMD

3.6.2 Asset Management (tracking) software acquired by

March 2013

On Track ToRs drafted and shared. Will depend on access to

financial resources at due time.

GAMD

3.6.3 40 staff(25) regional heads(RSVs) and 15 from HQ)

trained on asset management function by December

2013

On track Training programme prepared, awaiting release of

funds

GAMD

3.6.4 Asset Management Policy prepared and submitted by

June 2015

On Track The ToRs for the drafting of the asset policy

management have been shared. They are approved at

DGAM level, and are circulated among other

stakeholders.

GAMD

3.6.5 Valuation of Government assets in 34 MDAs and Rs

completed by June 2016

On track ToRs for consultancy drafted and waiting for fund

release to embark on tender process.

NOTE: The 5-year valuation plan prepared to value government

assets in 7 MDAs on average each financial year

GAMD

51

3.6.6 Progress against target reported annually On track Target within reach (to be reported at the end of FY) GAMD

KRA 4: Budget Control and Oversight,

Output 4.1: Increased coverage and quality of the internal audit functions by 2016

4.1.1 Operational plan developed and approved by June,

2013

On track Operational plan for 2012/13-2016/17 developed and

awaiting approval from PS.

IAG

4.1.2 Internal Audit manual/guidelines, standards and

quality assurance improvement programme in line

with International Standards will be in place by June,

2013

On track Manuals for LGAs and MDAs have been reviewed by

consultants (August 2012) to ensure consistency with

the International Practice Framework (IPPF), training

has been provided on IPPF and inception report

produced for guidelines on quality assurance.

Stakeholders’ consultation conducted.

IAG

4.1.3 Effective internal audit units and audit committees

established to all MDAs and LGAs by June, 2016

On track Survey has been conducted to identify the weaknesses

of MDAs audit committees (members drawn from

management teams) comprise of lack of understanding

of role of committees, training and charters explaining

responsibilities and duties.

IAG

4.1.4 The Pilot stage of Computerized Audit will be

finalized by June 2014

On track Staffs were trained on payroll software. Acquisition of

the audit software is in process. Pilot in 3 MDAs and 2

LGAs would be conducted by June 2013.

IAG

4.1.5 Computerized Audit in place by June 2016. On track Target within reach. IAG

52

4.1.6 550 internal auditors and other stakeholders trained in

risk management process and risk based audit by June,

2017.

On Track Needs assessment undertaken and training plan

developed (July 2012), 20 champions trained by JICA

on audit systems (drawing on existing internal audit

handbook and process guide). In addition, 20

champions trained on risk management. Guidelines on

implementation of institutional risk management

framework being developed.

IAG

4.1.7 Technical Audits are conducted for 70 Projects by

2016

On track This milestone consists of 3 activities: undertaking the

baseline survey; consultant to undertake the training for

IAs who will conduct the technical audits (recruitment

ongoing) and undertaking the technical audits (none as

at Dec 2012). The baseline survey and the process to

recruit the consultant are ongoing.

IAG

Output 4.2: Strengthened External audit functions by 2016

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

programs conducted by December 2012

Delayed Report ready to be submitted to the Attorney

General’s Office. Legal officers have been working

on laws which impede independence of the NAOT

with a view to incorporating independence of the

NAOT into the constitution using Uganda’s

constitution as an example. Other issues relate to

NAOs budget, recruitment and salary structure.

NAOT

53

An AFROSAI-E team undertook an assessment of

NAO`s performance in September 2012, focusing on

institutional assessment, performance audits and

regularity audit

4.2.2 50% of auditors to be accommodated in NAO own

offices by 2014

On Track The CAG has accommodated its auditors in 11 (9

owned and 2 rented) of the 25 regions. Some funds

have been received for construction but are limited.

This should kept under review with increasing staff

numbers

NAOT

4.2.3 300 Auditors trained on Risk Based Audit and 200 in

IT audit by 2014

On track No staff trained by Dec 2012. However, 40 champions

existed before FY2012/13.

NAOT

4.2.4 Two Value for Money audit reports to be produced

each year by NAO staff without technical assistance

from external consultant by 2014.

Achieved 5 performance audits p.a are being carried out using

internal coaching provided by Swedish NAO, providing

a base to build on.

NAOT

4.2.5 300 Auditors trained on international standards of

auditing and full adoption of International Audit

Standards by 2014

On track No training but the existing Champion Group is

practicing (12 people within office plus 3 seconded

from other Government Institutions (TRA and TTCL).

NAOT

4.2.6 Closing of books of accounts for Parastatals

harmonized and audit modalities agreed by 2014.

On track The Treasury Registrar is in charge of parastatals, and

as such NAOT has to follow up with TR on this

milestone. However NAO has played a key role in

determining which institutions are true parastatals and

NAOT

54

this is made complicated by the process of privatization

of state owned companies and GoT majority

shareholdings. Despite these challenges, 176 parastatals

were audited by NAO by Dec 2012.

4.2.7 Audit methodology in line with ISSAIs guidelines

adopted by June 2013

On track Alignment of audit methodology is progressing well,

with guidelines already in place.

NAOT

4.2.8 Scoping study to ascertain the parameters of the

outstanding matters Database is completed by

November 2012

Delayed The scoping study is on-going though details of exact

scope need to be clarified. Given the time constraints,

the assignment to be completed in April 2013.

NAOT

4.2.9 Establish a database that will separate findings

(monetary and non monetary) and recommendations

including by age, and record follow up actions by

December 2013.

Delayed Creation of database is pending completion of scoping

study (see above)

NAOT

4.2.10 200 Auditors trained on audit commanding language

(ACL) and other audit based software by 2014

On track No training undertaken as at Dec 2012. 100 to be

trained between April – June 2013.

NAOT

4.2.11 NAO Headquarter is connected to 10 Regional

offices using WAN by 2014

On track NAO HQ is now connected to all its 10 (owned

buildings) regional offices.

NAOT

4.2.12 Two of five Team mate modules applied in auditing

by October 2014

On track Application of Team Mate modules on track. Action

plan in place to activate four modules with support

from NAO Development project and PFMRP.

NAOT

55

Output 4.3: Improved transparency on audit report (Central, Local and Parastatals levels) to strengthen scrutiny and accountability)

4.3.1 Citizen audit reports available for the 4 General audit

reports by June 2013

On track Preparation of citizen audit is waiting the publication of

the General audit report. Haki Elimu and TWAWEZA

will prepare citizen audit reports and TWAWEZA

maintains the NAO’s website for free. A link to the

citizens report can be put on NAO’s website

NAOT

Output 4.4:Improved Performance of Parastatals by June 2016

4.4.1 Ten (10) Parastatals signed Performance Contracts

with TR by June 2014

On Track All “commercial enterprises”, of which there are more

than 50, are to have performance contracts. The ten

pilot parastatals have been selected based on turnover,

size, strategic importance etc. (further details to be

made available). Contracts will include performance

targets to be measured by the TR, though consistency is

needed with parent MDAs. Among others,

performance incentives are provided for in the 2010 TR

Act.

TR

4.4.2 Database on Parastatals set up and functioning by

December 2014

On track Technical and user-friendliness issues discussed last

year and temporarily have been resolved. Data is

currently being entered into TRIMs (Treasury Registrar

Information System). The system will be deemed fully

functional once it is able to issue reports, now expected

TR

56

by the end of current FY.

4.4.3 Monitoring framework for Parastatals set up by June

2014

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. TR to review

this milestone together with 1.2.10 and 4.4.4 below

TR

4.4.4 Mechanism for measuring Parastatals’ compliance rate

developed by June 2014

On track Performance is to be based on accounts tables and

whether parastatals comply with circulars and

directives issued by the TR, which also conducts

management audits. The new TR Bill includes clauses

on measuring compliance rates. Optimism that the

mechanism to monitor compliance rates will be set up

by the deadline. TR to review this milestone together

with 1.2.10 and 4.4.3 above

TR

Output 4.5: Strengthened Capacity of oversight functions of Parliamentary Accounts Committees by 2016

4.5.1 Capacity building interventions to PACs conducted On track Discussions confirmed that support for Parliamentary

Committees has lagged and requires early attention

during phase 4. Follow up is needed to identify and

agree an appropriate action plan for PFMRP support to

parliamentary committees. First steps in this process

have begun but support needs to be defined and

NAOT

57

coordinated with other stand-alone programs.

KRA 5: Cross-Cutting Issues (Change Management and Programme Monitoring),

Output 5.1: Coordinate Integration, interfacing and rationalization of Government financial systems.

5.1.1 ICT mapping exercise showing location and owners of

all and peri-financial software commenced with

inception report published by December 2012

Delayed The TORs for the mapping were prepared and the

process to select the consultant was on going with

finalization foreseen by Jan 2013.

FISM

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

Delayed To follow after the completion of the study. FISM

5.1.3 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

At risk To follow after the completion of the study. FISM

5.1.4 Integration/Interfacing plan is engaged and series of

planned actions are being executed and completed by

October, 2015

On track To follow after the completion of the study. FISM

5.1.5 IFMS infrastructure installed to new 34 LGAs, RSs

and PMORALG institutions and connected to central

server at Dodoma and MoF by June 2013

On track All 133 old LGAs and RSs are connected to the IFMIS

system through the Dodoma server network. New 34

will be connected in the next year plan. The planned

PMO-RALG

58

budget is not enough to implement this activity. Once

the fund received, it will be used to procure initial

equipment for installation.

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.

On track DFMIS and PMO-RALG indicate that the June 2013

target should be achieved.

FISM/PMO-

RALG

5.1.7 Completed capacity building to key users of IFMS

from all LGAs, RS and PMORALG institutions by

June 2013.

On Track Target within reach but needs attention. PMO-RALG

5.1.8 Audit of IFMIs in LGAs conducted by June 2017 On Track This activity was not planned to be implemented in this

current year 2012/2013

PMO-RALG

Output 5.2: Utilization of EPICOR modules increased from seven to ten

5.2.1 EPICOR system upgrade complete by December 2014 On track Seven (7) modules installed and so far six have been

activated.

ACGEN

5.2.2 ACGEN Staff capacity enhanced by Dec.2014 On track Training on going with 40 staff trained on EPICOR 9 ACGEN

5.2.3 Training for IFMS end users on the upgraded modules

conducted by Dec 2014

On track Training ongoing with 381 end users trained in

EPICOR 9. The MDA training on new version of

EPICOR is planned for completion before June 2013.

ACGEN

5.2.4 EPICOR is able to provide real-time information to all

LGAs on flow of funds by July 2015

On track PMO-RLG and Softech have agreed on how this target

can be met in time.

PMO-RALG

59

Output 5.3: All software development and module upgrades are coordinated with the overarching plans for ICT integration

5.3.1 DFISM is operationalized and controls are put in

place to manage software acquisition and development

by December, 2012.

Achieved Activities are being guided by a 3 year operational plan FISM

5.3.2 DFISM staff capacity enhanced by June, 2015. On track Training for 16 DFMIS staff completed by Dec 2012. FISM

Output 5.4: Improved communication and public access to key fiscal information to stakeholders by 2016.

5.4.1 The Approved National Budget is published on MOF

website by September each year

Achieved Budget was published on the website in September.

2012

GCU

5.4.2 Publish Citizens Budget by November each year Achieved Citizen Budget published in October 2012 GCU

5.4.3 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

On track The budget outturn report will be produced by adding

annexes in the annual execution report that will reflect

additional information as discussed in the Technical

Working Group (TWG) in the BUDGET DIVISION.

GCU

5.4.4 MoF Communication Strategy developed and

implemented by June 2014

On track Draft communication strategy prepared and is being

shared among stakeholders for comments including

mechanism for information verification, control over

source data and policy support.

GCU

5.4.5 Fiscal Information and Budget Transparency

Publication Cycle developed and implemented by June

2014

On track Milestone to be clarified as TWGs on Budget, CPAD

and GCU did not seem to have details on this

milestone.

GCU

5.4.6 MoF website timely updated by June 2017 On track MoF website updated GCU

60

Output 5.5: Coordination and Standardization of PFM Training Achieved

5.5.1 Training mapping exercise completed by Dec 2012 Delayed Using In-house expertise, ToRs were developed for the

mapping exercise and finalized by Dec 2012. The

questionnaire to be used to undertake the exercise was

also developed. The mapping will cover 29 ministries,

14 regions and 28 district councils from those selected

regions.

DAHRM

5.5.2 Capacity building Plan developed and shared with key

Stakeholders by June 2013.

Pending This milestone will be implemented after the mapping

is completed

DAHRM

5.5.3 Two tracer studies conducted to measure the impact of

training and documented by June 2014 and 2016

Pending Planned for FY2013/14 DAHRM

Output 5.6: PFMRP Component Managers are being guided by detailed multi-year operating plans

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

On track A five year operating work plan has been developed

and is intended to be updated when preparing the next

financial years plans. Through TWGs and PMC

meetings the necessary guidance provided to

component managers.

PD

Output 5.7: PFM activities are effectively planned and implemented

5.7.1 Capacity building Plan developed and shared with key

Stakeholders by Dec. 31, 2012

Delayed See above for 5.5.1 PD/DAHRM

61

5.7.2 Training on Change Management and Strategic

Planning completed by Dec.31/13

On track To be implemented in the 3rd

and 4th

Quarter PD

5.7.3 Results Based Management training has been delivered

to 60 PFM RP Component managers by June 30, 2013.

On track To be implemented in the 3rd

and 4th

Quarter PD

Output 5.8: Effective coordination of activities and support provided to the programme implementers

5.8.1 Secretariat procurement process completed by July

2012

Delayed The Secretariat recruitment was done and contract

negotiation for signing was ongoing as at the end of

December, 2012 for 4 out of 6 positions that received

qualified applicants. Re- advertised the post of PFM

expert and M&E specialist in October, 2012.

PD

5.8.2 Secretariat work plan is completed and approved by

JSC by December 2012

Delayed The implementation of this milestone will be done after

hiring of full Secretariat team

PD

5.8.3 PFMRP Co-ordination secretariat facilitated annually. On track Pending contract signing ACGEN, PD

Out Put 5.9: PFM programme oversight and review is being guided by clearly defined milestones derived from an agreed M&E framework

5.9.1 Annual review and amendment of the M&E

framework to ensure ongoing congruence and

relevance annually by Nov 2012

On track The supervision mission was undertaken in Sept 2012

which led to the updating and review of the M&E

framework. (the revised M & E framework is

attached to this report)

PD

62

Output 5.10 All major PFM reforms have been coordinated with and informed by relevant government and DP stakeholders groups

5.10.1 PFM information session completed to disseminate

results of: ICT mapping exercise, ICT Harmonization

Integration Plan by March 2013

Delayed The information session is likely to take place before

June 2013 as some of the elements are not ready such

as the results of the ICT integration mapping (to be

finalized in June 2013.)

PD

5.10.2 IAG action plan, ACGEN’s Plan to transition to

Accrual Accounting

Pending Milestone to be revised IAG ,

AcGEN’s

5.10.3 Minimum of one PFM reform information day

conducted for CSOs , DPs and GoT during Public

Service day annually by Dec.31st each year

On track Information day will conducted in the last quarter. PD

Output 5.11: PFMRP implemented efficiently and effectively through result based management approach.

5.11.1 PFMRP implemented according to annual work plan

and milestones are being met

On track Linked to milestone 5.6.1 (Five Year Work Plan).

There is clearly a shared responsibility with all

participating components in terms or producing timely

information and reports.

PD

5.11.2 Annual supervision mission are conducted by Sept 30

of each year commencing 2012.

on track The supervision mission was undertaken in Sept 2012. PD

5.11.3 Independent program evaluations are completed in

2014

On track Mile stone within reach PD

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5.11.4 Dialogue structures are working as evidenced by

combined DP/GoT Survey results (Survey 1-March

2013, Survey 2-March 2015 for effective program

implementation improved)

On track TWG dialogues are effectively maintained and produce

mutually beneficial yields for the participants within the

framework of PFMRP. However, the survey will

commence in the fourth quarter

PD

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.

On Track TWG dialogues are effectively maintained and produce

mutually beneficial yields for the participants within the

framework of PFMRP. However, the survey will

commence in the fourth quarter

PD

Output 5.12: National systems and process for intergovernmental transfer to LGAs streamlined and rationalized

5.12.1 TORs (for Streamlining and rationalizing National

systems and processes for intergovernmental transfers

to LGAs) completed by July 2012.

Achieved Preparation of ToRs was completed by end of July

2012 and advertisement to call for interested

consultants to proposals to undertake mapping was

placed in August 2012.

PD

5.12.2 Mapping commences September, 2012 Delayed The consultant for the mapping study hired early

December 2012

PD

5.12.3 Review and mapping of the systems and processes for

intergovernmental transfers initiated with inception

report finalized by October 2012,

Delayed Based on the delays in completing the selection of

consultant, the inception report is foreseen for Jan/Feb

2013.

PD

5.12.4 Comprehensive and sequenced action plan on a

recommendation of the mapping exercises on the

intergovernmental transfers finalized by June 2013.

On Track The action plan is expected to be prepared and ready

before June 2013.

PD

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5.12.5 Reports to be produced annually by end September Pending Milestone to be clarified PD

Output 5.13: Strengthened Public Financial Management Reforms in Zanzibar by 2017

5.13.1 Milestones developed and agreed after discussion with

Zanzibar and thereafter decide on the support by

September 2012

Delayed Discussions with Zanzibar are yet to take place as

planned. The intent is to identify a mutually acceptable

and coordinated entry point for PFMRP to support PFM

reform in Zanzibar.

ZANZIBAR

5.13.2 Zanzibar PFMRP Strategy developed by June 2013 On track Target still within reach. ZANZIBAR