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Introduction to PEPFAR Expenditure Reporting

Erin Dunlap, USAIDASAP Webinar

March 26, 2020

AgendaIntroduction to PEPFAR

Expenditure Reporting (ER)

Budget Formulation

ER Classification

ER Data Use

Submission Process

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PEPFAR’s 3 Guiding Pillars

Active Program and Partner Management

Delivering an AIDS-Free Generation with Sustainable Results

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PEPFAR Data SourcesPEPFAR uses a variety of data inputs in its program planning:

1. MER (Monitoring, Evaluation and Reporting)

2. SIMS (Site Improvement Through Monitoring System)

3. Expenditure Analysis (Now Expenditure Reporting)

4. SID (Sustainability Index Dashboard)

This gives us the clearest picture of the epidemic, as well as allows PEFPAR teams to respond in close to real time to issues in country.

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Partner “Spend”The Difference Between Outlays & Expenditure Data

“Spend” via Outlay “Spend” via Expenditure Reporting

Perspective USG Agencies Partners

Accounting Methodology

Reflects disbursement of money from USG to implementing partners.Depending on type of agreement, this can be before or after an activity is implemented.

Actual expenditures by partners using cash basis of accounting

Level of Detail IM by agency. No budget code level disaggregation.

IM: Program Area x Beneficiary x Cost CateogrySubrecipient: Program Area x Beneficiary

Timeliness Quarterly Annual

Funding Inclusion

OU Reports include COP Only COP + select central funds/initiatives that contribute to site level targets (e.g. DREAMS, VMMC, Contraceptive Fund, etc.)

USG M&O Included Excluded

Relationship to Programmatic Results/Targets

Not directly tied to results or targets. Directly relatable as long as they can be mapped to MER indicators.

Allows for ability to triangulate investment across populations with achievement within those populations.

**USG outlays ≠IP expenditures

Introduction to ER

Increase reliability, usability, and timeliness of financial data to achieve program impact

Build upon PEPFAR’s pillars of transparency, accountability, and impact

Clarify linkages between COP/ROP (Country Operational Plan/Regional Operational Plan) and central funding budgets, program implementation, budget execution and financial management and reporting

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Integrated COP Budgeting and Expenditure Reporting Alignment

COP Budget(FAST Budgeting Tool) Work Plan Budget Annual Expenditure

Reporting

COP 17/ FY 2018 $

COP 18 / FY 2019 Optional $

COP 19 / FY 2020 $ Optional $

COP 20 / FY 2021 $ $ $

Introducing a Harmonized Classification Structure for PEPFAR planning and reporting processes

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Process Flow of Annual Financial Planning and Reporting

COP Strategy and Budget• Determine full year

amount for each mechanism

• Determine funding level for interventions --Program Area and Beneficiaries

Work Plan Budget • IM interventions further

elaborated by Cost Category

Expenditure Reporting• Expenditures reported

against the interventions identified in the work plan budget

Track financial information from budgeting to work plan budget to expenditure reporting using same classification

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Expenditure Reporting Classification System

Part II

ER Methodology Basics• Cash basis, not accrual basis of accounting for reporting

• Only report on USAID/PEPFAR funding-do not include other donor funding or other USAID $$$ spent

• Reported to USG annually by each Implementing Mechanism (IM) in USD to capture all spend from the past USG fiscal year • Upcoming ER20= FY20 USAID/PEPFAR spend from Oct. 1, 2019-Sept. 30, 2020

• Reported at country/OU (Operating Unit) level• Expenditures are not reported by districts or sites

• **Prime partner responsible for reporting all subrecipient funding in one template

• Classification exclusive and comprehensive, no dollar is double counted

**Subject to change for FY20 reporting, stay tuned for more updates! 10

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Putting it Together: How are your IMs funded?

Program Area Beneficiary Intervention

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Classifications Scheme

Goal: To have common classifications across both budgeting and expenditure reporting that will answer the following questions:

1. Organization: Who is spending the money?2. Program: What is the purpose?3. Beneficiary: Who benefits?4. Cost Category: What was purchased?

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Expenditure Reporting Template: Program Area

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Classification: Program AreaProgram: Distinct organization of resources directed toward a specific strategic objective, or, alternatively, a set of activities that achieve a common outcome.

Site Level vs Above Site Level

Above Site Level

Activities that support the broader program or the health system,

including program management, strategic information, surveillance and health systems strengthening

Site LevelActivities that occur at the point of service delivery or facility level, and

are categorized by the implementation of prevention and

treatment activities in specific communities or facilities

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Site-Level Programs: Service vs. Non-Service Delivery• Service Delivery: Direct interaction with beneficiaries

Examples:• Implementing differentiated service delivery models• Linking and referral to treatment services

• Non-Service Delivery: No direct interaction with beneficiary, although money is spent at the site level

Examples: • Technical Assistance and training to site level staff for the

strengthening of HIV services• Provision of data clerks to sites responsible for the completeness and

quality of patient records• Monitoring and Supervision

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Program Area Example: Care & Treatment

Program Area Subprogram Area

Care and treatment

HIV clinical services – Service delivery

HIV clinical services – Non-service delivery

HIV laboratory services – Service delivery

HIV laboratory services – Non-service delivery

HIV drugs – Service delivery

HIV drugs – Non-service delivery

Care and treatment: Not Disaggregated – Service delivery

Care and treatment: Not Disaggregated – Non-service delivery

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Program Area Example: Care & TreatmentProgram Area Subprogram Area

Testing

Facility-based testing – Service delivery

Facility-based testing – Non-service delivery

Community-based testing – Service delivery

Community-based testing – Non-service delivery

Testing: Not Disaggregated – Service delivery

Testing: Not Disaggregated – Non-service delivery

Program Area Subprogram Area

Prevention

Community mobilization, behavior and norms change – Service delivery

Community mobilization, behavior and norms change – Non-service delivery

VMMC – Service delivery

VMMC – Non-service delivery

PrEP – Service delivery

PrEP – Non-service delivery

Condom and lubricant programming – Service delivery

Condom and lubricant programming – Non-service delivery

Opioid substitution therapy – Service delivery

Opioid substitution therapy – Non-service delivery

Prevention: Not Disaggregated – Service delivery

Prevention: Not Disaggregated – Non-service delivery

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Program Area Example: Care & TreatmentProgram Area Subprogram Area

Socio-economic

Case management – Service delivery

Case management – Non-service delivery

Economic strengthening – Service delivery

Economic strengthening – Non-service delivery

Education assistance – Service delivery

Education assistance – Non-service delivery

Psychosocial support – Service delivery

Psychosocial support – Non-service delivery

Legal, human rights and protection – Service delivery

Legal, human rights and protection – Non-service delivery

Socio-economic: Not Disaggregated – Service delivery

Socio-economic: Not Disaggregated – Non-service delivery

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Above-Site Programs• All Above-Site programs = non-service delivery• Usually paired with “Non-Targeted Population” beneficiary class,

but not always

Program Area Subprogram Area

Above-site Programs

Procurement and supply chain management

Health management information systems, surveillance, and research

Human resources for health

Laboratory system strengthening

Institutional prevention

Public financial management strengthening

Policy, planning, coordination and management of disease control programs

Assessing laws, regulations and policy environment

Above Site: Not Disaggregated

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Program: Program Management

• Required reporting• Program Management will be used for:

• Implementing Mechanism management and overhead costs

• Implementing Partner indirect costs• Always associated with non-targeted population

beneficiaryProgram Area Subprogram Area

Program Management Program management

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ER Template: Beneficiary

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Who is a Beneficiary?• Beneficiary: Intended recipient of PEPFAR program

• May belong to more than 1 category

• Related to program outcome, not input

• Targeted during the COP budgeting process by USAID

• Monitoring, Evaluation, and Results (MER) data will include more disaggregated beneficiary information

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Classification: Beneficiary

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Demographic Beneficiary GroupsBeneficiary Sub-Beneficiary Details

Non-targeted

population

Adults 25+ years old

Young people and adolescents 15-24 years old

Children <15 years old

Non-targeted populations: Non Disaggregated Spending is intended to target more than one sub-beneficiary group of non-targeted population

Females

Adult women 25+ years old

Young women and adolescent females 15-24 years old

Girls <15 years old

Females: Not Disaggregated Spending is intended to target more than one sub-beneficiary group of females

Males

Adult men 25+ years old

Young men and adolescent males 15-24 years old

Boys <15 years old

Males: Not Disaggregated Spending is intended to target more than one sub-beneficiary group of males

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Demographic Beneficiary GroupsBeneficiary Sub Beneficiary Details

Key populations

Men having sex with men

Transgender

Sex workers

People who inject drugs

Key populations: Not Disaggregated Spending is intended to target more than one sub beneficiary group of key populations

Pregnant and breastfeeding women Pregnant and breastfeeding women

Priority populations

People in prisons

Military and other uniformed services

Mobile populations Farm workers, miners, migrant workers, truck and commercial drivers

Displaced persons Refugees and internally displaced

Clients of sex workers

Priority populations: Not Disaggregated Spending is intended to target more than one sub beneficiary group of priority populations

Orphans and vulnerable children

Orphans and vulnerable children

OVC care givers

OVC and care givers: not disaggregated Spending is intended to target both sub beneficiary groups of OVC

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Putting it Together: How are your IMs funded?

Program Area Beneficiary Intervention

Intervention ExamplesIntervention 1 Intervention 2 Intervention 3 Intervention 4

Program Area Testing Socio-economic Care & Treatment Above-site

Subprogram

Area

Community-

based – Service

delivery

Education

assistance –

Service delivery

HIV clinical

services – Non-

service delivery

HMIS,

surveillance and

research

Beneficiary

GroupKey Pops OVC Non-targeted Non-targeted

Sub -

Beneficiary

Group

Sex WorkersOVC

Not

disaggregated

Not

disaggregated

Inte

rven

tions

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• USAID takes varying approaches to selecting interventions

• “Split” interventions to highlight breadth and depth of programmatic activities

• “Lump” interventions to demonstrate a more cohesive picture

Maximum 20 interventions (including one for program

management) can be entered on the template

No way to disaggregate in every possible way,

especially for comprehensive IMs

Level of Detail

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ER Template: Cost Category

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Classifications: Cost Category

• Object: What is the Implementing Partner purchasing with their PEPFAR money?

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Classifications: Cost Category• Object: What is the Implementing Partner purchasing

with their PEPFAR money?Object Sub objects Details

Personnel

Salaries, wages –health care workers

MDs, RNs, Pharmacists, Lab technicians, and Social workers who provide clinical services directly to beneficiaries

Salaries, wages – other staff

Technical advisors (potentially MDs, RNs, etc.), data capturers, lay workers, community health workers, and other support personnel; includes salary for trainers

Fringe Benefits

Fringe BenefitsDirect costs of employee fringe benefits

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Classifications: Cost Category• Object: What is the Implementing Partner purchasing

with their PEPFAR money?Object Sub objects Details

Travel

International TravelTransport by IP personnel outside of or to/from the country of implementation

Domestic TravelTransport by IP personnel within the country of implementation

EquipmentHealth equipment

Equipment used for surgical procedures, diagnosis, or disease prevention >$5,000

Non-health equipment All other equipment >$5,000

Supplies

Pharmaceutical Drugs

Health product – non pharmaceuticalMedical supplies, VMMC kits, RTKs, lab reagents, condoms, etc. <$5,000

Other suppliesAll other supplies <$5,000 including in-kind goods to beneficiaries

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Classifications: Cost CategoryObject: What is the Implementing Partner purchasing with their PEPFAR money?

Object Sub objects Details

Contractual

Contracted health care workers

Health care workers contracted to provide services; not IP employees

Contracted interventionsNot named in award document(s) and is NOTsubject to federal regulations of the prime IP

Other contractsAdministrative and management services, continuous charges (i.e. rent, utilities, insurance)

Construction ConstructionConstruction and renovation, including project management fees

Training TrainingTraining, conferences, meetings, including venue, participant transport per diem, contracted trainers

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Classifications: Cost Category• Object: What is the Implementing Partner purchasing

with their PEPFAR money?Object Sub objects Details

Subrecipient SubrecipientNamed in award document(s) and subject to the same federal regulations as the prime IP (FAR, CFR, etc.)

Other

Financial support for beneficiaries

Cash, cash incentives, cash paid for patient travel to clinic, or microloans

OtherOther direct costs that do not fit aforementioned categories

Indirect Indirect

Costs to support the overall operation of the Implementing Partner—both administrative and programmatic (e.g. NICRA)

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Template Completion and Submission

Part III

ER Process Timelines for FY20 Reporting

Timeline: FY 2020 Expenditure Reporting Data Entry

Date Task

Around Sept 14 • FY20 ER Guidance and templates released

October 1 • FY20 expenditure reporting data entry opens in DATIM (online system)

November 6 • IPs upload and submit expenditure reporting templates in DATIM

November 13 • FY20 ER DATIM data entry closes; all templates submitted by IPs and approved by Agency field staff

November 25 • ER visualizations and structured dataset available in Panorama

December 1 • DATIM open for IP cleaning and re-upload of FY20 IM expenditures

December 11 • FY20 ER data cleaning import deadline; all cleaned expenditure reporting templates submitted by IPs and approved by Agency field staff

December 18 • FY20 ER data cleaning period closes

Beginning of January • ER visualizations and structured dataset available in Panorama

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Template Completion

USAID A/CORs and Activity Managers will inform IPs of top-line budgets by intervention after the annual COP budgeting process ends

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Template CompletionUSAID IPs will complete the budget by intervention with cost category and subrecipientdetail during the annual Expenditure Reporting & the annual workplanprocess

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DATIM Interagency Workflow

• DATIM is a system that is used by the broader PEPFAR intragency space to store, enter, and analyze data from various data streams within PEPFAR (i.e. MER, SIMS)

• In September you will request ER DATIM accounts to gain access to the system and upload/submit your ER template.

Technical Assistance Available to USAID IPs & Mission Staff

• Each OU USAID team will have a HQ-based and field-based technical support the ER process:

• USAID/HQ Costing Advisors: Provide oversight and high-level technical assistance, particularly around expenditure classification, data analysis and use

• Field-based USAID A/CORs and Activity Managers: Provide guidance on allocation as the IM expert in that country

• Field-based Technical Assistance Consultants: Support implementation of data reporting and cleaning and provide support to USAID field staff and IPs

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Data Use

Part IV

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What is the Purpose of the Spend?Are we focusing our resources on the right strategies to reach our targets?

IPs that operate where there is better treatment and testing coverage might have expenditures that reflect this point of epidemic control (i.e. greater spend in Non-Service than Service Delivery?

Other OUs may be in “Surge” mode and reflect this point of epidemic control (i.e. greater spend in Service than Non-Service Delivery?

• “Females: Young Women & Adolescent Females” (DREAMS) and “Males: Adult Men” are priority PEPFAR populations

• Very small portion of total FY 19 USAID spend attributed to these two beneficiary groups

• Almost half of total spend attributed to “Non-Targeted Population, Not Disaggregated” beneficiary group

• Highlights need to analyze expenditures alongside MER fine age and sex disaggregates

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Who are we Serving?Are we focusing our resources on the right populations to reach epidemic control?

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How are We Spending Our Resources?

• Are we spending our resources on the right things to meet our program goals/targets?

• How should we potentially shift investments in the next fiscal year to achieve greater program success?

• Purpose• Highlight any mechanism “over”

or “under” spend• Ask

• Is our mechanism prudently spending our budget (generally +/- 10% of budget)?

• Has our mechanism become more fiscally responsible over time?

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Budget vs ExpenditureHow does our spend compare to budget?

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ER Data Use for Budgeting • USG Mission teams have already begun to use this new approach to

budgeting by intervention (program area + beneficiary)• Work planning will occur after COPs are finalized and be in the same

format with an additional disaggregation by cost category• By FY20 all IMs will have an alignment between budgets vs

expenditures by intervention

Snapshot of USG Budgeting Tool (FAST):

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Next Steps & ER Resources

Part V

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• Reach out to your USAID A/COR/AM now to review your COP 2019 budget by intervention and begin tracking spend against interventions

• Think about what your organization can do now/monthly/quarterly?

• Familiarize yourself with the FY19 Resources: ER template and PEPFAR Financial Classifications Reference Guide found on www.datim.zendesk.com

Next Steps to Prepare for FY20 Expenditure Reporting…

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ER Resources

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Questions or Comments?