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1 Public Financial Management Reform Programme (PFMRP) Joint Supervision Mission 2015 AIDE MEMOIRE (REPORT) 08 Sept – 07 Oct 2015 December, 2015
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Public Financial Management Reform
Programme (PFMRP)
Joint Supervision Mission 2015
AIDE MEMOIRE (REPORT)
08 Sept – 07 Oct 2015
December, 2015
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List of Acronyms (Not exhaustive)
AccGen
Accountant General
AFROSAI-E African Organisation of Supreme Audit Institutions – English speaking Africa
BoT
Bank of Tanzania
CAG
Controller and Auditor General
CPAD
Commissioner for Policy Analysis Division
CSOs
Civil Society Organisations
DAHRM Division for Administration and Human Resource Management
DASIP District Agricultural Sector Investment Programme
DCF Development Cooperation Framework
DEV
Development
DFIMS
Director of Financial Information Management Systems
DGAM
Director of Government Asset Management
DPs
Development Partners
EFT
Electronic Fund Transfer
GBS
General Budget Support
GCU Government Communication Unit (MoF)
GDP
Gross Domestic Product
GLGGA Government Loans Grants and Guarantees Act
GoT
Government of Tanzania
HCMIS
Human Capital Management Information System
IAS
International Accounting Standards
ICT
Information Communication & Technology
IFMS
Integrated Financial Management System
IMF
International Monetary Fund
IPSAS
International Public Sector Accounting Standards
ISSAI
International Standards of Supreme Audit Institutions
JAST
Joint Assistant Strategic Framework
KPA
Key Policy Action
KRA
Key Result Area
LGA
Local Government Authority
M&E
Monitoring and Evaluation
MDAs
Ministries, Departments and Agencies
MoF
Ministry of Finance
MoHSW
Ministry of Health and Social Welfare
MNRT
Ministry of Natural Resources and Tourism
MTEF
Medium Term Expenditure Framework
MTSPBM
Medium Term Strategic Planning and Budgeting Manual
NAO
National Audit Office
OC
Other Charges
OI
Outcome Indicator
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PAC
Public Accounts Committee
PAF
Performance Assessment Framework - General Budget Support
PBB
Program Based Budgeting
PEFA
Public Expenditure and Financial Accountability
PE
Procuring Entities
PFA
Public Finance Act
PFM
Public Financial Management
PIM Public Investment Manual
PMIS
Procurement Management Information System
PFMRP
Public Financial Management Reform Programme
PMO-RALG
Prime Minister’s Office - Regional Authorities and Local Government
PO-PC President’s Office – Planning Commission
PO-PSM
President's Office - Public Service Management
PPA
Public Procurement Act
PPRA
Public Procurement Regulatory Authority
RAs
Regional Administrative Secretariat
SP
Strategic Plan
TISS
Tanzania Interbank Settlement System
TR
Treasury Registrar
TRA
Tanzania Revenue Authority
TWG
Technical Working Groups
VFM
Value for Money
WB
World Bank
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Table of Contents
Table of Contents ....................................................................................................................................................... 4
1. EXECUTIVE SUMMARY ................................................................................................................................... 5
2. METHODOLOGY ........................................................................................................................................... 11
3. KEY RESULTS AREAS – STATUS REPORT ..................................................................................................... 13
3.1. KRA 1 - Revenue Management ........................................................................................................................... 14
3.2. KRA 2 - Budgeting and planning .......................................................................................................................... 17
3.3. KRA 3 - Budget Execution, Transparency and Accountability ................................................................................. 20
3.4. KRA 4 - Budget Control and Oversight ................................................................................................................. 24
3.5. KRA 5 - Change Management, Program Management and Communication............................................................. 27
3.6 KRA 6 – LGA PFM Reform .................................................................................................................................. 30
3.7 PFMRP IV Midterm Evaluation ............................................................................................................................. 32
3.8. Financial Performance of the Programme ............................................................................................................. 33
4. PFM IN THE CONTEXT OF GBS ...................................................................................................................... 34
5. CONCLUSION AND RECOMMENDATIONS ..................................................................................................... 37
ANNEX A: PFMRP IV M&E RESULT FRAMEWORK AS AT SEPT 2015 ......................................................................... 39
ANNEX B: PERFORMANCE ON BURNING ISSUES 2014-15 ...................................................................................... 68
ANNEX C: BURNING ISSUES IDENTIFIED FOR 2015-16 ........................................................................................... 70
ANNEX D: TORS OF THE PFMRP JOINT SUPERVISION MISSION 2014 .................................................................... 72
ANNEX E: MISSION PARTICIPATION FROM GOT .................................................................................................... 75
ANNEX F: MISSION PARTICIPANTS FROM DEVELOPMENT PARTNERS .................................................................. 79
ANNEX G: FINAL MEETING SCHEDULE FOR 2014 JOINT SUPERVISION MISSION .................................................. 80
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1. EXECUTIVE SUMMARY
The PFMRP IV is the fourth phase of the Government of Tanzania`s PFM reform agenda and runs from July
2012 to June 2017. Every year in September a Joint Supervision Mission with the aim of reviewing
programme implementation and reform progress takes place. The 4th Joint Supervision Mission of Phase IV
of the PFMRP took place from 24 Aug 2015 to 7 Oct 2015 and the Mission Team consisted of Government
of Tanzania officials, members of the Development Partners PFM Group and the PFM GoT Secretariat. This
report provides a comprehensive assessment of programme progress of the 36 months of implementation of
PFMRPIV, with a particular focus on activities implemented in FY 2014-15, as well as identifies key priorities
for the following year. The report also incorporates the assessment of GBS Underlying principle number 3
on “Continually strengthened budgeting and public financial management systems”.
Highlights
At an overall level there is continuous improvement in the PFM environment in Tanzania.
Progress is reported in domestic revenue mobilization with new regulations (VAT act) that took
effect from 1st July 2015. MNRT completed integration of its revenue collection systems and
recorded continuous improvement in revenue collection. Further work still needed to strengthen
revenue reporting systems, especially from LGAs.
GoT has made some notable progress in the area of Planning and Budgeting with enactment of the
Budget Act and finalization of its regulations and development of a strategy for clearance of arrears.
But progress on programme based budgeting has been delayed.
In terms of budget execution, accountability and transparency steps are being made in
strengthening the Debt Management Office (DMO) capacity and conducting of a Debt Sustainability
Analysis internally. However, amendments of the Government Loans Grants and Guarantees Act
(GLGGA) continue to be delayed. E-procurement action plan has been developed and significant
progress has been made in the valuation of government assets.
Continuous improvements have been observed in the functions of the oversight institutions.
Treasury Registrar has recorded an increased non-tax revenue collection to the government from
executive agencies, however transparency remains a challenge and proposed TR act continues to
be delayed. Quarterly Internal audit reports have been institutionalized for improvement of internal
controls.
Good progress is being made in strengthening PFM in LGA. Roll out of revenue management
system (i-tax) has commenced and the role of PMO – RALG in oversight and management of LGAs
in PFM has significantly improved.
Findings from the Joint Supervision Mission
The Joint Supervision Mission concluded that PFM reforms under PFMRP IV are making satisfactory
progress. Some milestones have already been achieved; majority are on track, some have been delayed
while a few remain pending. Performance across different KRAs varies. Activities related to Revenue
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Management (KRA 1), Budget Control and Oversight (KRA 4) and LGA PFM Reform (KRA 6) show good
progress; while those related to Planning & Budgeting (KRA 2), Budget Execution (KRA 3) and Change
Management (KRA 5) show mixed progress. Overall 43% of the milestones have been achieved and 31%
are on track.
Burning Issues
Out of 9 identified burning issues for 2014-15, 6 of the issues were partially addressed by the programme
and 3 remain unaddressed. All Burning issues remain valid for the FY 2015/16.
- Issues that are partially addressed includes Budget credibility; limit and control pace of
accumulation of arrears; Budget documentation, comprehensiveness and transparency; Insufficient
monitoring of contingent liability; strengthen oversight of parastatals; and, Inadequate follow up and
compliance by auditees on audit recommendations.
- Issue that remain not addressed includes clear LGA budget allocation process; Lack of
integration/interface between key financial systems; and weaknesses in the intergovernmental fiscal transfer
process.
For 2015-16, all 9 previous year’s burning issues remain relevant. Activities related with most of the issue
have been planned. These are:
1. Budget credibility remains weak
2. Continued need to limit and control the pace of accumulation of arrears, and also the need to clear
existing stock of arrears.
3. Budget documentation, comprehensiveness and transparency could be improved to meet
international standards
4. Quality of service delivery is not optimal without clear LGA budget allocation process
5. Unreported government operations and insufficient monitoring of contingent liabilities lead to fiscal
risk
6. Oversight of parastatals need to be strengthened
7. Inadequate follow-up and compliance by auditees on audit recommendations (internal & external)
8. Lack of integration/interface between key financial systems
9. The inter-governmental fiscal transfer process has several weaknesses
Revenue Management (KRA 1)
At an overall level and based on the progress on the 19 milestones under KRA 1, there has been
satisfactory achievement in this key result area. As of Sep 2015, 13 milestones have been achieved, 2
milestones are on track and 4 milestones are delayed.
There has been good progress in some areas under Revenue management. One key piece of legislation
that had been pending; the VAT Act, was approved by Parliament and the President and takes effect from 1
July, 2015.
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MNRT performed exceptionally well beyond set target in integration of computerized revenue collection
systems for major sources of revenue. EFD continued with training of new AMP users and periodic reporting
of Aid trend. The Amp report for 2013/14 – 2014/15 is in final stages of preparation. Further, has finalized
the Development Cooperation Framework (DCF) for approval in the Ministry Management before
submission to the Cabinet. Due to lack of release of (GoT) funds PAD could not undertake the planned
“review (of) the sources of budget financing”. Due to general lack of clarity on the interpretation of the
milestone it was agreed to reformulate the milestone and budget for FY 2015/16: “to undertake phase II of
MAC – MOD to run simulations and update data with new rebased GDP and poverty data”.
Planning & Budgeting (KRA 2)
There was mixed progress on KRA 2. Out of 20 milestones under KRA 2, 6 milestones were achieved, 4
milestones are on track, 7 are delayed and 3 milestones are pending. However, progress has been noted in
some areas. MoF finalized a new Budget Law and regulation which was enacted and put into effect from 1
July 2015. The Act has institutionalized the new budget cycle and established a Parliamentary Budget Office
(PBO) which will assist the parliamentary budget committee. However budget documentation and reporting
have not improved as compared with the previous year.
The revision of budget allocation formulae for LGAs has been completed, although with delays. However,
GoT approval for revised formulae is pending and it was not applied for FY 15-16. The transition to Program
– based budgeting has been delayed. 8 pilot ministries prepared shadow budgets, however these could not
be tabled due to time limitation during the parliamentary budget debate in 2015. There was limited progress
in the training on the revised Medium Strategic Planning and Budgeting Manual (MTSPBM) due to delayed
approval of the document.
Budget Execution (KRA 3) In general there is mixed progress in the areas of budget execution under KRA3-wise performance. Out of the 43 milestones under this KRA, 18 are achieved, 13 are on track, 9 are delayed and 3 are pending. Progress in cash management is being recorded with the expanded use of TISS and EFT, better control and monitoring of payment arrears and the ongoing transition to IPSAS accruals. However there is limited information disclosed on the progress of the roadmap. The cash rationing system continues to hamper efficient expenditure management at MDAs and LGAs. Important steps towards the strengthening of public debt management capacity have been taken with the approval by the PO-PSM for the new Debt Management Office (DMO) and its staffing structure, recruitment process is ongoing, continuous training and the conduct of a Debt Sustainability Analysis (DSA), the completion and publication of the country’s medium-term debt strategy and finalization of the draft national debt policy. However, there is delay in the amendment to the Government Loans, Guarantees and Grants Act (GLGGA). In the area of government assets management, there is forward progress on the valuation of assets in a wide range of MDAs and RSs. In the area of procurement, following the operationalization of the PPA, 2011 there have been considerable improvement in procurement discipline evidently from the improvement in procurement Audit report.
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However some challenges have been observed in implementation of some sections. PPPD is in the process of going through stakeholders complains. An action Plan on implementation of PPA has been prepared.
Budget Control and Oversight (KRA 4)
KRA4 overall performance is good. Out of 43 milestones, 13 are achieved, 21 are on track, 6 are delayed and 3 are pending. All the components – Internal Auditor General’s Division, National Audit Office, Treasury Registrar’s Office and Public Procurement Regulatory Agency recorded satisfactory progress.
Capacity building by IAGD for internal auditor stakeholders is in progress, including workshops for 604 staff conducted. NAO has carried out reviews on the Laws governing Public Audit and finally submitted the reviews to the Attorney General for further action. Various trainings for auditors including risk based audit, international audit standards and audit software are in progress. Five performance audits were carried on Management of Urban Planning in Tanzania, Enforcement of environmental control system in the mining sector in Tanzania, Management of Government buildings maintenance in Tanzania, Provision of extension services to farmers in Tanzania and Management of demand forecasting and distribution of essential medicines and medical supplies to health facilities in Tanzania. TR database (TRIMS) on parastatals is now in use and lodged at TR offices and further work to integrate data from the parastatals is ongoing. Capacity building for parliamentary committees has been conducted, including on understanding CAG reports and interrogation skills and expenditure tracking site visits. Change Management (KRA 5) Progress in the KRA 5 milestones is mixed. Out of 37 milestones, 18 have been achieved, 10 are on track, 8 are delayed and 1 is pending. Activities in Zanzibar have been delayed for various reasons (communication challenges, different procurement issues and pending legislations’ approval). Only 5 out of 11 planned activities were implemented in the FY 14/15 on Training on PBB, Training of Auditors on Computerized Audit and IFRS. An agreement to develop an M&E framework for Zanzibar PFM reform milestone has been agreed to be developed in FY 2015/16. Activities to be implemented in FY 2015/16 were agreed and efforts to strengthen the communication will be implemented. Strengthening PFM in the Local Government
Overall performance after one years of implementation is satisfactory. All 13 milestones for PMO-RALG are on track although some of the milestones commenced with delay. The performance of regions on their respective milestones is also similar, and most regions have progressed significantly.
Roll-out of a revenue management system (I-Tax) has commenced and extensive training to practitioners has been conducted. On the job training, operationalisation of the Regional PFM teams and training of the PFM champions have significantly strengthened the PFM capacity at the regions. Quality of oversight and technical support to LGAs has been significantly strengthened across different PFM areas – monitoring of fund flows, financial benchmarking, preparation of financial statements, monitoring of audit compliance and follow-up, training on fraud prevention etc. The role of PMO-RALG as the nodal ministry for oversight and management of LGAs on PFM matters has improved through better coordination and technical assistance. Finally, technical assistance to PMO-RALG and regions has helped improve technical expertise as well as financial management practices.
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Budget Performance
In 2014-15, the programme received 67% (32.9 bn Tsh) of the total approved budget (49. 1 bn Tsh). Low
budgetary outturns were mainly on the account of insufficient releases from the government funds (30% of
the approved Local budget). 93% of the foreign component was disbursed to implementing components in
2014-15. KRA-wise budget performance is given in the table below.
Approved Budget Fund Released Fund Release as %
of approved
budget
Total Expenditure
+ Commitment
Total Expenditure +
Commitment as % of
Approved budget
KRA 1 1,926,350,000 1,386,350,000 72% 1,352,212,158 70%
KRA 2 1,404,570,000 436,250,000 31% 259,327,791 18%
KRA 3 6,161,970,000 5,351,970,000 87% 4,281,874,664 69%
KRA 4 22,048,918,561 14,052,783,561 64% 13,604,875,799 62%
KRA 5 14,603,160,000 9,021,360,000 62% 7,055,810,734 48%
KRA 6 2,956,760,000 2,601,360,000 88% 2,531,360,000 86%
Total 49,101,728,561 32,850,073,561 67% 29,085,461,146 59%
Programme Audit
Financial Audit: For 2013-14, the financial statements of PFMRPIV were audited by the Controller and
Auditor General (CAG) and an unqualified opinion was issued.
Procurement Audit: PPRA conducted procurement (compliance) audit and performance (value for money)
audit for FY 2013/2014 & FY 2014/2015 for three components (i.e NAOT, MoF and PMO-RALG) that
implement the program. The overall assessment of the programme’s procurement activities in terms of
efficiency, competitiveness, accountability, openness, fairness and value for money was fairly good for all
the three Procuring Entities (PEs). NAOT had average compliance levels of 82%, MoF had compliance level
of 77.5% while PMO-RALG had compliance level of 73%. Red Flag check list analysis for each PE were
significantly low for NAOT and PMO-RALG at 1.3% and 5.7% respectively while MoF recorded an overall
score of 17%. Results from all components indicate a low likelihood of possible symptoms of fraud and
corruption.
Mid Term Review PFMRP IV
Findings from the Mid Term evaluation of PFMRP IV found that the program is regarded as “extremely
important” and critical to the future development of PFM Tanzania. The review concludes that recorded
progress is in line with overall expectation. However, the review identified a number of areas around
strategic aspects where the programme faces a number of challenges, such as establishment of clear
distinction between PFM cycles of GoT, LGAs and Zanzibar taking into account different legal processes,
focus on issues critical to overall PMF environment, ownership of each initiative by implementing
components, sustainability and improvement of PFM in longer term, ensuring outputs are consistent with
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good practice, measurement of impacts of capacity building activities, maintaining good relationship with
stakeholder and improving the role of PFMRP Secretariat.
PFM in the Context of GBS
The assessments completed during this supervision mission will feed into the GBS Annual Review, including
the assessment of PFM as an underlying principle. The overall conclusion points to continuous
improvements generally in the PFM systems. Issues that need intervention from high-level policy decision
makers include the area of budget credibility, oversight of parastatals, and the lack of compliance with
recommendations from the Controller and Auditor General. The GBS Performance Assessment Framework
(PAF) 2014 had one indicator on PFM related to domestic revenue mobilisation. The indicator “domestic
revenues (tax + non tax) as a share of GDP (MoF-PAD)” approximately achieved the target of 18% (17.9
percent of GDP). Due to the GDP rebasing exercise of 2014 and the 30 % change in GDP, the indicator will
be revised for FY 2015/16.
Conclusion
The main conclusions from the Joint Annual Supervision Mission are:
PFM reforms under PFMRP IV are continuing to make progress. Of the total 160 milestones, 68
(43%) were achieved; a majority are on track (31%), while some have been delayed (21%).
Performance across the KRAs varies. Activities related to Domestic Revenue Mobilisation (KRA 1),
Budget Execution (KRA 3) & Budget Control and Oversight (KRA 4) show satisfactory or good
progress, Planning & Budgeting (KRA 2), and Change Management (KRA 5) show mixed progress.
The performance in KRA6 Strengthening LGA PFM systems shows promising performance.
Although progress is noted in many areas, none of the burning issues identified for 2014-15 have
been completely addressed, even though they were already carried forward from the previous year.
There is, therefore, need for continued engagement by component managers throughout the year
for the programme to achieve its objectives.
There is urgent need for government to ensure that the government's share of the budget is
provided fully and in a timely manner, as this will reflect its commitment to PFM reforms.
Given the fact that several PFM issues have multiple causes and cross-cutting implications that go
beyond specific components, there is need for technical discussions at a more strategic level with
key decision-makers.
It is important that PFMRP strengthens its collaboration with different stakeholders to build and
sustain momentum on PFM reform agenda.
Although the mid-term evaluation indicates that the programme is making good progress and
contributing to improving PFM systems, it also highlight key challenges that the programme needs
to address.
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2. METHODOLOGY
The Supervision Mission Team consisted of Government of Tanzania officials, members of the Development
Partners PFM Group, and the PFM GoT Secretariat. This supervision mission provides an opportunity to
share knowledge, jointly assess progress, identify challenges at an early stage, discuss and chart the way
forward.
Objectives of the Supervision Mission
The 4th Joint Supervision Mission of Phase IV of the PFMRP was successfully conducted from 08 Sept to
7th Oct 2015. The objectives of the mission were to:
- To assess and agree on the overall progress and results from the implementation of the high-
impact/burning issues as agreed during the 2014 JSM.
- To assess and agree on progress in the implementation of the action plans of PFMRP IV during the
last FY (2014/2015) against the agreed milestones in the M&E framework.
- To assess and agree on the overall progress and results from the implementation PFMRP IV since
the last supervision mission in Sept 2014.
- To propose possible adjustments to the M&E framework and the Operations Manual in order to
keep these documents current and relevant. .
- To identify issues, challenges and opportunities that needs to be considered or addressed in the
future in order to enhance and improve the PFM outcomes under each KRA.
The documents used as guidance for the mission were the PFMRP IV Strategy, its Monitoring and
Evaluation Framework and the Operations Manual, the Annual Progress Report, Annual work plan for FY
2015/16 and Draft Midterm Evaluation Report.
The mission activities were structured around the 6 Key Result Areas (KRAs) that are articulated in the
Phase IV Strategy and the Monitoring and Evaluation Framework and Sub Program Strategic document on
strengthening PFM in Local Governments. The KRAs are as follows:
KRA 1: Revenue Management
KRA 2: Budget and Planning
KRA 3: Budget execution, Transparency and Accountability
KRA 4: Budget control and Oversight
KRA 5: Change management, Program Monitoring and Communication
KRA 6: Strengthening of PFM in Local Government
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The primary methodology used during the mission was the Technical Working Groups (TWG) consisting of
the key PFMRP Component Managers and DP representatives where extensive discussions were
undertaken and initial feedback from these meetings has been very positive. In most cases, the discussions
provided valuable opportunities for learning and information sharing that was specifically directed at
improving the shared understanding on the status of key PFM reform activities together with any challenges
and constraints that are impacting performance.
A special meeting with all KRA 6 implementing components was held in Dodoma. This provided a good
opportunity to see PFM-related improvements in Local Governments that have occurred in the first year of
implementation of the sub-program.
Further, apart from the direct participating departments and agencies, the mission also held discussions with
the Bank of Tanzania which is not a direct beneficiary of the programme but is a key implementer in the
reform process. These meetings provided the opportunity for discussions that focused on the impact of
reforms, status of reform implementation and challenges in relation to spending and income generating
entities face given the reform environment.
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3. KEY RESULTS AREAS – STATUS REPORT
The following section provides an overview of the results of the Technical Working Group discussions within each KRA. As highlighted in the methodology, the M&E framework was the guiding document with the discussions on the milestones and outputs focussed on progress of implementation as at September 2015. The TWG also outlined the challenges and opportunities for further reform or redirection in reform. The figure below attempts to give an overview status of implementation of milestones across the KRAs covering varied outputs. The mission has noted some revisions to current milestones, deletion of redundant/unclear milestones, and addition of a few milestones including from KRA 6. Overall, the programme has achieved 42% of milestones so far, 31% of milestones are on track, 21% are delayed and 6% are pending. About 73% of the milestones are either on track or achieved.
Detailed findings have been captured in the milestone matrix which is attached as Annex A.
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3.1. KRA 1 - Revenue Management
Strengthened systems, processes and procedures for improving the operational capability of the revenue collection by June 2017 Output 1.1 Improved quality of forecasting of fiscal aggregates for three years on a rolling basis
Output 1.2 The Government improves efficiency in domestic revenue mobilization both at the policy and the administration levels by updating legal instruments towards international best practices
Output 1.3 Strengthened capacity of local government authorities to collect revenue by 2015
Output 1.4 Increase of donor funding that flows through the exchequer system by 2016
Burning Issues
No burning issue have been identified for KRA1 for FY 2014/15. Detailed Findings:
Tax Revenue Mobilisation & Revenue Forecasting: The VAT Act and Regulations came into force by 1 July 2015. The Act is expected to have a significant positive impact on domestic revenue mobilisation. The responsibility for forecasting revenues is vested with the Policy and Analysis Division and based on collaboration with the TRA for tax revenues and relevant
Overall KRA1 Summary Through the assessment of the 19 milestones under KRA 1, there is satisfactory progress registered in the FY 2014/15. As of Sep 2015, 13 milestones been achieved, 2 milestone on track, 4 milestones are delayed. There has been good progress in some areas:
The VAT Act and regulations were approved by Parliament and came into effect from 1 July
2015.
MNRT has harmonized its major revenue collection systems. Three main systems on Tourism registration licencing (TALA), hunting tourism and photographic tourism systems have been harmonized and plans to incorporate other smaller system in the coming year is in place.
The AMP continues to be in use and currently generates quarterly reports. Reconciliation of information is being done with data from the AcGEN; however frequency in data entry from DPs remains a challenge
As a proportion of total funds released, 98% were spent and/or committed. This amounted to 1,352.2 million Tsh out of 1,386.4 million Tsh that was disbursed for the year out of a budget of 1,926.4 million Tsh.
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MDAs and Regions for non-tax revenues. Addressing the real causes for the gap between targets and revenue collected in recent years and finding correct measures and activities for improving the quality of forecasting within the Policy Analysis Division and formulating adequate milestones has been a challenge. However, following lack of clarity of the milestone and taking into account the rebased GDP and new poverty data the component will restructure the milestone to implement Phase II – MAC-MOD to run simulations and incorporate new data. Non-Tax Revenue Mobilisation: Following the completion of the study on Non-Tax revenue, the action plan for its implementation was prepared by February 2015 and costed. It is expected to be implemented in the financial year 2015/16. Three revenue collection systems on hunting tourism management, photographic tourism management and tourism registration and licencing (TALA) have been integrated. All system users have been trained on the use of the integrated system and preliminary result indicate improvement in revenue collection. The MNRT is commended for the good efforts in implementing its activities and it has exceeded its target of computerised revenue collection of 50%. Going forward MNRT should consider automation of its revenue reporting system preferably through Epicor. LGA Own-Source Revenue Mobilisation: The implementation of the action plan that contains the recommendations of the completed study in 2014/15 on revenue potential assessment is progressing albeit slowly. About 514 local government officers have been trained on the revenue collection plan. Revenue database i-Tax has started to be rolled out in about 16 RS and review and streamlining of various pieces of legislation (Local Government finance Acts 289 and 290, Land Law, Urban and Tourist Act) have been conducted and a Cabinet bill to amend the Local Government Finances Act of 1982 has been prepared and proposed sections of CAP 290 amended and ready to be used. However, due to the ongoing political process the approval process will likely be delayed.
Management of Donor Funding: The EFD has finalized the new multi-year government development cooperation strategy, the Development Cooperation Framework (DCF) for approval through the MoF management before approval by the Cabinet. However given the current ongoing political process the final approval is likely to come in the new government. The revised user guideline for Aid Management Portal (AMP) have been prepared and communicated to stakeholders including the Donors. The office is continuing with periodic training for the new users upon request. The Aid Management Platform which was launched in 2008 has continued to improve to better incorporate reporting and dissemination of relevant data. EFD is in the final stages of compiling report on analysis of aid financing trend for FY 2013/14 and 2014/15. MoF continues to organizing regular trainings on AMP for DP AMP Focal Points. Budget Performance
Overall, 72% (1.39 bn Tsh) of the approved budget (1.93 bn Tsh) was released in 2014-15. Out of the total funds disbursed, 98% were expended or committed to be expended. Component-wise, expenditure was highest for MNRT (100%), followed by PMO-RALG (100%), PAD (98%) and EFD (87%).
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Tanzania – Value Added Tax (VAT) Act 2014
The VAT Act 2014 and supporting Regulations came into effect from 1 July 2015.
Core features of VAT
VAT is charged on taxable supplies made by registered businesses, and on taxable imports. Businesses can offet VAT
they charge on supplies against VAT on purchases. The ultimate VAT charge falls on the final consumer of goods or
services, and the VAT they pay includes the value added in the supply chain. VAT is a broad-based tax: the core
principle is that supplies of goods or services are taxed unless there is a specific relief. It is common to have low or no
VAT on essential goods or services such as food, healthcare, water, power, and services relating to homes.
The VAT Act 2014
The VAT Act 2014 follows the core features of VAT models set out above. The key change from the previous Act is the
removal of a significant number of exemptions and special reliefs. Existing social exemptions are more tightly defined:
for example, the exemption for food applies to unprocessed food (maize, rice, eggs, meat, etc), while processed food is
taxable. This means that the poorest are unlikely to pay VAT on most of their purchases.
The Act largely removed the power of the Minister of Finance to add new exemptions other than by amending the Act
itself. This change is intended to stop ‘exemption creep’ by special pleadings. Exemptions granted under the previous
regime for investments under the Economic Processing Zones Act and the Special Investment Processes Zones Act
continue to apply, but the Act does not provide for new exemptions, or for continuity for exemptions under the Tanzania
Investment Act.
Overall, the Act broadens the tax base while protecting the poorest in society, and reduces opportunities for reliefs to be
made other than through the parliamentary process. However challenges have been made to the removal of some
exemptions and this is a matter that warrants further discussion.
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3.2. KRA 2 - Budgeting and planning
Strengthened capacity of planning and budget management, including results and program based budgeting, within MOF, MDAs and LGAs by June 2017.
Output 2.1: Strengthened capacity of MDAs, RSs and LGAs in implementing program based budgeting by June 2016.
Output 2.2: Increased effective utilization of Planning and budgeting tools by 2016
Output 2.3: Strengthened capacity of LGAs for MTEF preparation by 2015
Burning Issues Following the Supervision mission of 2014, several burning issues were identified under KRA 2. Progress on these burning issues is outlined in the table below.
a) Budget lacks credibility Partially Addressed. The new Budget Act will provide guidance in matters relating to Budget and instil budget discipline and credibility and put in place a legal framework that considers different aspects of the budget and the process as well as recognizing the legal roles and responsibility of different key stakeholders. It remains to be seen how the Budget Act works in practice.
b) Continued need to limit and control the pace of accumulation of arrears, and also the need to clear
Partially Addressed. A strategy of clearance of arrear is in place. A circular has been issued to all government institution to take stock of all the arrears and how they will be cleared. Quarterly evaluation of arrears is being conducted by ACGEN office. A total of TZS 600 bn has been allocated in FY 2015/16 to clear verified
Overall KRA2 Summary There was mixed progress on KRA 2 in 2014-15. Out of 20 milestones under KRA 2, 6 milestones have been achieved, 4 milestones are on track, 7 milestones are delayed and 3 are pending. There has been progress in some areas under Planning & budgeting including.
The New Budget Act has been enacted by Parliament and the attendant regulations have also been finalised.
A strategy for clearance of arrears has been developed; verification of arrears has been completed up until FY 14-15 and. Tsh 600 bn has been budgeted to settle verified arrears in FY 2015-16.
A new budget allocation formulae for LGAs has been proposed, but is not yet approved by Government and therefore not yet in operation.
The transition to programme-based budgeting remains a challenge. Shadow budgets on PBB for 8 pilot ministries were prepared for FY 2015/16 budget, however could not be discussed in the Parliamentary budget debate due to time limitations. This has now been rescheduled for the 2016. As a proportion of total fund released, 59.4% were spent and/or committed. This amounted to 259.3 million Tsh out of 436.3 million Tsh that was disbursed for the year out of a total budget of 1,404.6 million Tsh.
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existing stock of arrears. arrears. However, continued cash constraints pose serious problems to clearance of arrears.
c) Budget documentation, comprehensiveness and transparency could be improved to meet international standards
Partially Addressed. Some progress is noted on this count. Apart from the budget books, citizens’ budget, details on parastatals revenue and expenditure were also published. However, detailed budgets of executive agencies could not be published together with the National budget FY 2015/16 due to ongoing harmonisation on fiscal years between the executive agencies and Government. For the first time, GoT has published the consolidated financial statement for FY 2013/14.
d) Quality of service delivery is not optimal without clear LGA budget allocation process
Not Addressed. Report on revised LGA budget allocation formulae has been completed. However, GoT approval for revised formulae is pending and it was not applied for FY 15-16.
Detailed Findings Planning & Budgeting process: GoT continued to successfully implement the new budget cycle in FY2015/16. The New Budget Law was approved legislating the new budget cycle and putting in place the Parliamentary Budget Office (PBO) to support the Budget Committee. A circular was issued to take stock of arrears and register how they will be cleared. A total of 600 billion Tsh have been budgeted for in FY 2015/16 budget for clearance of verifiable arrears. Training on the revised MTSPBM is still pending for a second year due to delayed approval of the final document. Programme-based Budgeting: The Budget Division continues to make progress, albeit with delays in some activities, towards the introduction of Program Based Budgeting (PBB). The PBB action plan is still under review to adjust the timeline. Shadow budget for pilot ministries were finalize, however could not be tabled in the last Parliamentary budget session due to time limitation.
Budget Transparency: The transparency of the budget process remains similar to that in last year. Although budget guidelines, approved budget books, citizen’s budget are uploaded in MoF website, there is significant delay in publication of quarterly budget execution reports. Revenue estimates (Vol. I) was published (for FY 2014/15) for the first time. While the government has has published all tax exemptions and profit and loss position of all PA&OBs, detailed budgets of executive agencies as annexes to budget book volume II have not been published due to differences in financial years. Within a period of three years all agencies are now required to align their fiscal years with Government fiscal year.
LGA Budget Allocation: PMO-RALG completed the study on LGA budget allocation formulae. The recommendations include revised allocation formulae for OCs and LGDG. Approval from the government is awaited; therefore the revised formulae could not be applied for FY 15/16.
Budget Performance: Overall, 31% (436.2 Mn Tsh) of the approved budget (1.40 bn Tsh) was released in
2014-15. Out of the total funds disbursed, only 59% (259.3 Mn Tsh) were expended or committed to be
expended. Component-wise, expenditure was highest for PMO-RALG (100%) and only 55% for Budget
Division.
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The Budget Act 2015 – Salient features
The new Budget Act was enacted in May 2015 and came into operation from 1st July 2015. The Act has 9 parts and 75
sections.
The salient features of the Act are outlined below.
Part II of the Act lays down the principles of fiscal responsibility and the fiscal policy objectives
Part III elaborates on the roles and responsibilities of the key stakeholders in Budget Management – this
includes the role of the national Assembly, Parliamentary Budget Committee, Minister of Finance, Minister of
Planning, Permanent Secretary and Pay Master General, Planning Commission, Treasury Registrar and
Accounting Officers
Part IV formalises the Budget Preparation and Approval Process that includes processes related to planning
and budgeting guidelines, submission of budget estimates, expenditure appropriation, submission of finance
bill, administration of the contingency fund, reallocation of funds and submission of supplementary budget
Part V pertains to Budget Execution, Monitoring, Evaluation and Reporting which provides for commitment
control and reporting, in-year execution reports, compliance reporting to the National Assembly and
submission of quarterly financial statement.
Part VI deals with Revenue Management and includes principles for management of revenues and
responsibility in revenue collection and management.
Part VII contains key provisions for budgetary and financial management oversight of Public Entities and
Extra-Budgetary Agencies.
Part VIII and Part IX contain General Provisions and Consequential Amendments respectively. The National
Assembly Act is amended to include the establishment of a Parliamentary Budget Office
The attendant regulations supplement the Act provisions and elaborate on the related institutional mechanisms through
which the Act will be implemented.
These provisions in the Budget Act 2015 are expected to significantly improve the overall budget process through (a)
prudent fiscal management (b) stronger legislative scrutiny on all aspects of budget making and execution (c) formalised
monitoring and reporting structures and processes (d) inclusion of other public entities and extra-budgetary agencies
and (e) enhanced legislative capacity through the new Parliamentary Budget Office. Effective implementation of the Act
will go a long way in ensuring fiscal prudence, budget credibility and financial discipline.
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3.3. KRA 3 - Budget Execution, Transparency and Accountability
Improved utilization of public resources in a more effective, efficient and transparent manner by June 2017
Output 3.1:Strengthened public sector procurement by June 2015
Output 3.2: Strengthened capacity of MDAs, RSs and LGAs in Cash management by 2015
Output 3.3: Strengthened public debt management capacity by 2015
Output 3.4: Improved integrity and content of government financial statements and the migration from IPSAS cash to IPSAS accrual accounting for all government accounts is progressing in accordance with plans.
Output 3.5:Improved accountability in management of Government Assets for supporting migration to IPSAS Accrual
Overall KRA3 Summary
In general there is a mixed in KRA 3. Achievement has been recorded in the areas of budget execution, accountability and transparency even though some activities were delayed. Overall on KRA 3 (Budget Execution), performance was rated as mixed. Out of the 43 milestones under this KRA, 18 have been achieved, 13 are on track, 9 are delayed and 3 are pending. - In the area of procurement, following the operationalisation of the PPA 2011 there has been some
improvement in procurement discipline, although some challenges have been observed in implementation of some sections. An e-procurement action plan has been developed by a multi-stakeholder group led by PPRA. PPPD has completed a procurement training needs assessment and updated the procurement staff database to include two more regions.
- Progress in cash management is being recorded with the expanded use of TISS and EFT, better control and monitoring of payment arrears and the ongoing transition to IPSAS accruals. However there is limited information disclosed on the progress of the roadmap. The cash rationing system continues to hamper efficient expenditure management at MDAs and LGAs.
- Important steps towards the strengthening of public debt management capacity have been taken with the approval by the PO-PSM for the new Debt Management Office (DMO) and its staffing structure, the conduct of a Debt sustainability analysis (DSA), the completion and publication of the country’s medium-term debt strategy and finalization of the draft national debt policy. However, there is delay in the amendment to the Government Loans, Grants and Guarantees Act (GLGGA).
- In the area of government assets management, there is forward progress on the valuation of assets in a wide range of MDAs and RSs.
As a proportion of total funds released for this KRA, 69% were spent and/or committed. This amounted to 4,281.9 million Tsh out of 5352 million Tsh that was disbursed for the year out of a budget of 6,162 million
Tsh.
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Burning Issues – status
a) Unreported government operations and insufficient monitoring of contingent liabilities leads to fiscal risk
Partially addressed. There is a delay in finalizing the amendment of Government Loans, Guarantees and Grants Act. However, important steps towards the strengthening of public debt management capacity have been taken with the approval by the PO-PSM for the new Debt Management Office (DMO) and its staffing structure, the conduct of a Debt sustainability analysis (DSA), the completion and publication of the country’s medium-term debt strategy and finalization of the draft national debt policy.
Detailed findings:
Debt Management: In general, some progress has been recorded with MoF’s effort to strengthen the country’s public debt management capacity. Training on Debt Sustainability Analysis (DSA) is ongoing and MoF is in the process of finalizing a report on DSA.
The President’s Office-Public Sector Management (PO-PSM) approved the establishment of the new Debt Management Office (DMO). However, the new DMO will become operational only after the enactment by Parliament of the revised Government Loans, Guarantees and Grants Act (LGGA) legislation. Government has finalized their recommendation on the review of LGGA and Debt Policy. Both documents are in the approval process by the MoF Management to be sent to the cabinet secretariat.
In monitoring of PA&OBs contingent liabilities, an agreement has been made between TR, DMO and ACGEN on transfer of the information on guarantees from TR to DMO. Familiarization/stocktaking of the existing information is ongoing before transfer. In short term depending on the pace of establishing the DMO some debt are now recorded in the ACGEN books of accounts.
Procurement: Implementation of the PPA 2011 and related regulations has continued in a satisfactory manner; the new procurement Act has led to an increased discipline among public procurement staff in the conduct of public procurement transactions; this should show in the form of improved future procurement audit scorings; although a few challenges have been reported: some stakeholders, have complained about difficulty encountered in the implementation of some sections of the new Act. PPRA also led a multi-stakeholder group to develop an action plan for implementation of e-procurement system in Tanzania. In this regard, it undertook a study visit to South Korea. Bidding documents for inviting the private sector for development of the e-procurement system have been finalised. Training needs assessment (TNA) exercises have been carried out for MDAs and LGAs. Some of the TNA findings include the shortage of staff and/or the weakness of capacity of existing ones in several PMUs: for example, Dar es Salaam and other urban cities have well-staffed PMUs, while rural areas lack an adequate number of staff to carry out public procurement transactions. The strategy to develop PMU structures in public sector was completed and submitted to Management, and is awaiting Cabinet approval. PPD staff capacity continued to be strengthened through their participation in several foreign study visits and training programs. Some of the lessons learned from these trainings relate to the empowerment of local businesses to engage and compete in the bidding processes for public procurement transactions, and also
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the conduct of e-procurement. PPD had also received a number of capacity building requests from PEs and in response, has conducted several tailor-made courses and trainings. Government Procurement Services Agency (GPSA) has been playing an increasing role in the coordination and management of the procurement of commonly used items. The procuring of vehicles and gasoline by PEs through GPSA is expected to yield important savings for the Government.
Cash Management: The AcGen has continued the program of building the capacity of MDAs and LGAs staff in the areas of cash management. This has resulted in the sensitization of accounting officers in MDAs and LGAs against the opening of bank accounts in commercial banks. Thus, more than 1,883 dormant bank accounts owned by MDA and LGAs in commercial banks have been closed this fiscal year alone and an aggregate of more than 32,000 dormant bank accounts have been closed so far since 2010. One of the challenges encountered in this area stems from the practice of some donors to request the openings of special accounts in commercial banks through which they can channel their (projects) aid proceeds to the Tanzanian government. The process of reviewing Public Finance Act 2001 and regulations has been completed by the Legal team and is awaiting Cabinet approval. Arrears reporting to AccGen has improved as a result of which monthly monitoring of arrears is being undertaken. The migration to IPSAS accruals is proceeding according to AcGen’s Action plan, and the government is has been able to issue the consolidated financial statement for 2013/14, which has also been published. Several planned activities in the areas of staff trainings for FY2015/16 have been scaled back or postponed altogether due to the budget difficulties which led to an across-the board cuts in the budget resource allocation to several government entities, including the AcGen.
Case 1: Training Need Assessment (TNA) exercise for the Procurement Cadre in LGAs and MDAs
A Training needs assessment (TNA) exercises was carried out for MDAs and LGAs based on the findings from Audit
reports by PPRA and the CAG regarding public procurement. The findings highlight significant weaknesses in
procurement undertaken by many procurement entities. Through PFMRP a TNA was conducted for procurement and
supplies cadre in both LGAs and MDAs. A consultant was engaged to establish and identify specific gaps between the
existing performance capabilities and what is desired.
The exercises identified gaps at the system and institutional levels. The findings indicated lack of a National Training
Policy, Government management performance standards, staff succession plan, and lack of procurement capacity
building strategy for the Public Procurement and Supplies Staff. Other areas of concern included strategic procurement
skills (cost benefit analysis, risk management and e-procurement). Most staff rated themselves as having average or
below average competency in construction procurement, contract preparation and management as well as the
information technology.
The assessment recommended on the building of capacity in the planning and post contract phases. Further, the
assessment has outlined a number of trainings to the procurement staff, which includes not only tradition classroom
structured technical training but emphasized on-job training through coaching and mentoring, attachment and self-
learning as remedy to the identified Gaps. PPD is expecting to start training 30 public procurement and supplies staff in
managing risk in procurement undertakings and 60 on E-procurement in FY 2015/16 and more training to be rollover to
the coming years on the account of fund availability.
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Government Assets Management: GAMD had continued the process of valuation and uploading assets information into SAGE; so far, valuation and asset information for 51 MDAs has been completed; the undertaking of valuation of lands and buildings for 50 MDAs has been delayed due to procurement process-related issues. The process will be launched once a consulting firm is retained through a procurement regulation compliant process. A few challenges that may slow down the implementation of this activity stem from the request from the Ministries of Lands and of Works for greater involvement in the lands and building valuation process. The assets management (tracking) software had been installed and had become operational. The final version of the assets management policy was completed. Meeting with various stakeholders are scheduled during the year in order to draft the related assets management strategy. Budget Performance Overall, 87% (5.35 bn Tsh) of the approved budget (6.16 bn Tsh) was released in 2014-15. Out of the total funds disbursed, 80% (4.28 bn Tsh) were expended or committed to be expended. Component-wise, expenditure ratio was highest for ACGEN (100%) followed by GAMD (76%), PAD (69%) and PPPD (66%).
Case 2: PPAA exercise on complaint response mechanisms
During the Financial Year 2014/15, the Public Procurement Appeals Authority (PPAA) through PFMRP developed a
stakeholders Complaint Response Mechanism (CRM). The CRM Project was designed following the 2013 PEFA. The
PPAA CRM focused on assessing the effectiveness/inadequacy of the existing mechanism and proposing alternative
measures for improvement. The output of the exercise is a tool that will be used in assessing Complaint Response
Mechanisms in Tanzania Public Procurement system while at the same time providing solutions to the lacuna of the
existing procurement laws in the area.
Following multiple stakeholders meetings during the exercise the following findings were observed to be addressed:
a) At the Procurement Entity it was observed that time allocated for tenderers to lodge claim was too long (28
days), inexistence of standardized format for submitting complains, no specific remedies are provided under
the law in which the accounting officer may invoke in making his decision and lack of impartiality as the
Accounting officer is the judge of his own institution.
b) At the PPAA level there is confusion on time for lodging an appeal, difficulties in enforcement of the PPAA
ruling, lack of standardized formula for payment of compensation as ruled by PPAA, absence of feedback
mechanism on decision issued by PPAA, lack of knowledge on the existence of the Authority and lack of zonal
office which has made it difficult for tenderers outside Dar es Salaam.
The report has provided recommendations for amendments of the Law upon consultation with the Line ministry.
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3.4. KRA 4 - Budget Control and Oversight
Improved adherence and enforcing of MDAs and LGAs to financial internal controls, rules, laws, regulations and audit recommendations by June 2017
Output 4.1: Increased coverage and quality of the internal audit functions
Output 4.2: Strengthened External audit functions
Output 4.3: Improved transparency on audit reports (central, local and Parastatal levels) to strengthen scrutiny and accountability.
Output 4.4: Improved oversight of Parastatals’ performance
Output 4.5: Strengthened capacity of oversight functions of Parliamentary Accounts Committee in Tanzania Mainland
OUTPUT 4.6: Improved oversight of public sector procurement
Burning Issues:
a) Oversight of parastatals need to be strengthened
Partially Addressed. Statement of liabilities and statement of guarantees for parastatals were prepared by TR and shared with ACGEN, thereby enabling the preparation of consolidated financial statement on accrual basis. However, the proposed TR Act continues to be delayed and has not been enacted.
b) Inadequate follow-up and compliance by auditees on audit recommendations (internal & external)
Partially Addressed. NAOT has upgraded the Teammate software for tracking implementation of audit recommendations. It has developed a database of all audit recommendations up until 2012-13. However, this database will need to be merged with the proposed Teammate module and audit recommendations for FY 2013/14 also needs to be included.
Overall KRA 4 Summary There is notable progress in the areas of budget control and oversight. Overall KRA4-wise performance can be rated as good. Out of the 43 milestones under this KRA, 13 have been achieved, 21 are on track, 6 are delayed and 3 are pending.
There has been progress in areas including: IAGD has been able to institutionalise quarterly internal audit reports and this has enabled
better reporting and oversight on internal and external audit recommendations. NAO has carried out reviews on the Laws governing Public Audit and finally submitted the
reviews to the Attorney General for further action. Various trainings for auditors including risk based audit, international audit standards and audit software have been in progress.
The Treasury Registrar reported that non-tax revenue from parastatals increased to t.sh 161.6 Billion 2014/15 as compared to t.sh 84.1Billion in 2013/14.
Capacity building for parliamentary committees has been conducted, including on understanding CAG reports and interrogation skills and expenditure tracking site visits.
PPRA conducted procurement audit on a sample 52 selected PEs, and it has been mandatory that procurement plans to be part of strategic plan and budget in new PP Act.
As a proportion of total funds released for this KRA, 97% were spent and/or committed. This amounted to 13.6 billion Tsh out of 14.1 billion Tsh that was disbursed for the year out of a budget of 22.0 billion Tsh.
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Detailed Findings: Internal Audit: As the central entity for developing internal audit policies/standards and enhancing capacity of internal auditors and audit committees across the public sector, IAGD’s activities under PFMRP-IV over the last term was generally on track. As IAGD previously developed a series of manuals/guidelines (Code of Ethics; IA Charters; IA Handbook; IA Manual; Quality Assurance and Improvement Program (QAIP) Manual; Audit Committee Guidelines; Risk Management Framework Guidelines, etc.), it has been in a phase of providing trainings for internal audit stakeholders based on these manuals/guidelines, in order to have more effective internal audit functions that meets international standards in all MDAs and LGAs. As to the training of internal auditors on the QAIP, which is to improve the quality of internal auditors to meet the international standard (the International Professional Practices Framework: IPPF), 150 Internal Auditors from MDAs and LGAs have been trained so far towards the target of 450 by June 2016. Independent quality assurance assessment of internal audit units (IAUs) in MDAs/LGAs will be conducted by the end of FY2016/17. In order to establish functional and effective IAUs and audit committees (ACs) across MDAs/RSs/LGAs, IAGD has been striving to manage information/data about internal auditors as well as to train IAUs, ACs and stakeholders on the functions/mandates they are supposed to perform. 375 AC members were trained on Audit Committee Guidelines, and a workshop to raise awareness of stakeholders on the role of internal audit was attended by 955 from MDAs and RSs. IDEA software (mainly for data analysis e.g. of debt verification) has been procured and 60 internal auditors were trained (target 150 by Jun 2015). Procurement of TEAM-MATE (same software as that used in NAO) for enabling computerised audit is in the final stage. Technical audits were conducted for 41 projects (target 100 by Jun 2016) and 200 internal auditors from RSs/LGAs were trained. To improve the follow-up by auditees on internal/external audit recommendations, in previous years IAGD prepared reporting template, established in IAGD a unit responsible for the follow-up and instructed IAUs to report on time. The number of quarterly audit report that incorporate implementation status of audit recommendations an improvement is expected to improve in coming years (in FY2014/15, in total 126 reports (out of 680 expected: 19%) submitted timely from MDAs&RSs, 326 (out of 664: 49%) from LGAs). Trainings on risk based audit for 282 internal auditors and on risk management process for 419 stakeholders have been completed (total 601 against target 550). 117 heads of departments were trained on Guidelines for Fraud Risk Management Framework and 97 of them on Enterprise Risk Management and M&E Framework (totalling 214 against target 300 by Jun 2016). It is recommended: that IAGD utilises and focuses its limited resources on developing basic auditing skills/processes step by step so that it can gradually reach a higher level of IIA’s Capacity Model; and that IAGD develops a comprehensive training master plan that clearly states the goals of the various trainings with a clear picture of what internal auditors can benefit from the trainings. External Audit & Scrutiny: NAOT has continued showing good progress during the period. It has also done very well in capacity building to its staff by completing various training that were set in their annual work plan. These include trainings on auditing standards, team mate modules, quality assurance, and specialized project evaluation. However, training of auditors on audit commanding language (ACL) and other audit based software was delayed. Currently, only selection of consultant to undertake the assignment has been completed and funds
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committed. This is expected to be held in FY 2015/16. NAOT produced and distributed the Citizen Audit report for the second year in a row. The reports were well received by the general public and brought in more awareness and transparency on public expenditure. Another area is office accommodation where NAOT has completed the construction of a number of office buildings in various regions including 8 storeys building in Dodoma which is designated to be NAOT HQs. We have noted that only 50% of the NAOT approved budget was released by GoT, thereby calling for the GoT in fulfilling their contributions. NAOT managed to conduct awareness workshop to members of Parliamentary Accounts Committees (PAC, LAAC) on understanding of the CAG report, skills on interrogating the accounting officers, and elementary understanding of financial statements. All these in effect assisted the MPs in executing of their oversight functions. Laws governing Public Audit were reviewed and report submitted to the Attorney General for further action and a Conference for legal officers from AFROSAI-E member countries was conducted in April 2015. Other worth noting observations include activation and customization of four Teammate modules; updating of RAM; introduction of time recording system; development of NAOT Internal control manual and performance of five audit projects that were completed and submitted to the President of URT in March 2015 and finally tabled in Parliament in May 2015. Procurement Oversight: As the procurement oversight agency, PPRA has made significant progress in the last period. In the pursuit of the objective of improving performance in public procurement, PPRA had conducted procurement audit among 47 PEs with PFMRP support at the time this report was being finalized. With the help of a consultant, procurement implementation tools were reviewed. PPRA has widened the PMIS network and so far 383 out of 493 PEs have been connected. A fully functional PMIS in all PEs will make it easier for PPRA to electronically access information on procurement transactions by PEs. Dissemination of the new PP Act and regulations to stakeholders is still ongoing through holding of workshops. New PP Act requires all PEs to make procurement plan a mandatory element of the budget process and Budget Guidelines for 2014/15 also emphasised this requirement. GPSA had been given the mandate to update the database on unit costs for commonly used goods where by a survey to update database on unit costs for common activities in construction works has been done in 7 regions in FY 2014/15. Progress is being made in introduction of e- procurement. Learning visits were conducted in Korea and India on their e-procurement systems. Feasibility study was conducted and implementation plan as well as bidding document have been prepared. PPRA together with e-GA (which will host the system) conducted awareness session to PE through workshops. The first phase has been commenced through a tender that was initiated by PoPSM for implementing e-procurement for the Medical Stores Department (MSD) (funded by WB through RCIP project). Treasury Registrar: Office of Treasury Registrar (TR) is mandated as the central oversight institution for parastatals. Monitoring of Parastatal has continued to improve and results are being recorded. A total of Tsh 161.6 billion was collected during the FY2014/15 corresponding to an increase of 92.2% compared to 2013/14. As of June 2015 an evaluation of the technical proposal for developing a M&E framework was completed to be done in 2015/16. Training on the TRIMs database was conducted to 120 staff (users) who are now using the database. Although with delays a draft of New TR bill and its regulations has been completed to be submitted to the Inter ministerial committee for approval before submission to the cabinet. As of June 2015 11 performance contracts were signed with parastatals against of target of ten although was achieved with delays.
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3.5. KRA 5 - Change Management, Program Management and Communication
Improved management practices with increased accountability and leadership to better manage performance of PFMRP by June 2017
Output 5.1: Coordinate Integration, interfacing and rationalization of Government financial systems.
Output 5.2: Utilization of EPICOR modules Increased from seven to ten
Output 5.3: All software development and module upgrades are coordinated with the overarching plans for ICT integration.
Output 5.4: Improved communication and public access to key fiscal information to stakeholders
Output 5.5: Coordination and Standardization of PFM Training Achieved.
Output 5.6: PFMRP component Managers are being guided by detailed multi-year operating plans.
Output 5.7: PFM activities are effectively planned and implemented
Output 5.8: Effective coordination of activities and support provided to the program implementers
Output 5.9: PFM Program oversight and review is being guided by clearly defined Milestones derived from an agreed M&E framework,
Output 5.10: All major PFM reforms have been coordinated with and informed by the relevant government and DP stakeholder groups
Output 5.11: PFMRP implemented efficiently and effectively through result based management approach.
Output 5.12: National systems and processes for intergovernmental transfers to LGAs streamlined and rationalized
Output 5.13: Strengthened Public Financial Management Reforms in Zanzibar by 2016
Overall KRA 5 Summary
Overall there is mixed progress under this KRA. Out of 37 milestones under KRA 5, 18 have been
achieved, 10 are on track, 8 are delayed and 1 is pending.
Key achievements under the KRA include:
An agreement between MoF and PMO-RALG to start the process of linking IFMS to PMO-RALG so as to capture all exchequer transfers to RS and LGAs was reached.
Capacity building of about 80 officials on change management issues and development of a strategic plan for capacity building
The PFMRP components completed a successful study visit to South Africa.
Norway has decided to join the basket with funding earmarked for Zanzibar. The funding will be additional to the PFMRP budget funds allocated for Zanzibar. Norway will also take leading role for PFM Zanzibar.
As a proportion of total funds released for this KRA, 78% were spent and/or committed. This amounted to 7,056 million Tsh out of 9,021 million Tsh that was disbursed for the year out of a budget of 14,603 million Tsh.
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Burning Issues
a) Lack of integration/interface between key financial systems
Not Addressed. Although a detailed plan has been developed for integration of 7 key financial systems, activities were delayed in 2014-15 and are now expected to be undertaken in 2015-16.
b) The intergovernmental fiscal transfer process has several weaknesses
Not Addressed. Lack of transparency, untimely and lack of predictability in fund flows continue to plague the system.
Detailed Findings: Integration, interfacing and rationalisation of government financial systems: A review study of the
Electronic Financial Management Systems infrastructure has been carried out including user requirements
that will inform development of the new system. MoF and PMO-RALG have signed the MoU to link MoF and
PMO-RALG IFMS for easy capturing the approved budget and all other transfers to RS and LGA. The MoU
stipulates the data that are of particular interest to be linked. An assessment was also conducted to gauge
the effectiveness of operation of Epicor as is being used to the LGAs. A sensitization workshop on
managing EFMS was conducted and a standard document to control software acquisition was elaborated.
19 FISM officers were trained on Data management. The operationalization including how to ensure that
involved stakeholders understand and adopt the standard of the FISM has not yet started.
Utilization of EPICOR modules increased from seven to ten: Capacity building trainings have been conducted to the staff under ACGEN and IFMS end users where a total of 18 staff and 531 end users have been trained. This is expected to enhance the utilization of the modules in the ACGEN and for the end users. Improved communication and public access to key fiscal information to stakeholders by 2016: Some
progresses have been registered such as publishing of information like volume 1 of the budget, DP related
information and budget execution reports on the MOF-website. More over a communication strategy and its
associated action plan are at the advanced stages of development. It was noted that there are some
significant challenges on the roles and responsibility among various units of MoF responsible for the
implementation of this output such as ineffective distribution of key staffs to various units given the roles and
responsibility of the unit and delays in the process of approval and uploading of information to the website
making the information outdated by the time uploaded. Offline dissemination of information has been done
during national events such as trade fair celebrations.
Coordination and Standardization of PFM Training achieved: The procurement of a consultant to undertake the impact assessment of PFM training activities was delayed. A consultant has now been identified and the assignment is expected to be completed in FY2015/16. The draft PFM Monitoring and evaluation training framework will be shared with DPs. Various outputs related to coordination, implementation and monitoring of PFMRP activities: There are no specific issues with regards to these outputs. Generally the secretariat is now full-fledged with
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needed staff and some working tools; process for purchasing a motor vehicle is at advanced stages. Trainings to various implementing officers were conducted on various topics such as change management, strategic planning and results managements. The monitoring and evaluation framework has been reviewed and program results framework developed. The implementation of the recommendations from the inter government fund transfer (IGFT) study have started to be implemented. Strengthening public financial management in Zanzibar by 2017: Activities in Zanzibar have been delayed for various reasons (communication challenges, different procurement issues and different PFM framework). 5 out of 11 planned activities were implemented in the FY 14/15. These activities were concentrated on training of Public Debt Staff, a study tour (preparation of PBB) and Training on PBB, Training of Auditors on Computerized Audit and IFRS. Furthermore, ToR for a consultant to review the Public Investment Act was prepared. The review of Public Investment Act has been incorporated in the FY 2015/16 budget. Due to challenges encountered in the implementation of Programme Based Budgeting, a PBB study tour is planned. 7 staff from the Core PBB Team will go to Mauritius for learning on PBB implementation. 7 staff from the CAG office will go to South Africa to learn on how to Audit PBB. Norway will take a leading role on Zanzibar within the PFM DPG after its decision to join the PFMRP Basket. Funding from Norway will be earmarked for supporting activities in Zanzibar above the 4.5% of PFMRP Basket share to Zanzibar. MoF – Zanzibar will elaborate the M&E results framework to include milestones and expectations in terms of various outputs under the PFM strategy in Zanzibar. Remaining activities related to the Public Finance Act which has not yet been passed in the parliament could not be implemented as planned. The first reading of the act is expected to be January 2016 and second reading in April, 2016. Only about 40% of the budget was spent and the reminder returned to the Holding Account. Observed Challenges An observed communication gap between MoF – Zanzibar and the PFMRP secretariat has created delays
in disbursements. With the aim of resolving the differences, the secretariat had a meeting with the MoF –
Zanzibar and agreed on the way forward include having a closer communication on a regular basis and
ensuring participation of Zanzibar in key events. Furthermore, the procurement regulations in Zanzibar and
Tanzania Mainland are governed with different legislations. It was agreed through the meeting with the
secretariat for the Procurement specialist to have a direct and close communication with procurement
person in MoF – Zanzibar to ensure adequate advice and Q&A on procurements
Overall Budget Performance Overall, 61.8% (9.02 bn Tsh) of the approved budget (14.6 bn Tsh) was released in 2014/15. Out of the total
funds disbursed, 78% were expended or committed to be expended in 2015/16. Component-wise,
expenditure was highest for PMO-RALG (100%), followed by PD (91%). It was lowest to FIMS at 49%.The
underspending is essentially linked to the delay in implementation of the IT systems action plan (FISM) and
the delayed impact assessment of trainings undertaken by various PFMRP components (DAHRM).
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3.6 KRA 6 – LGA PFM Reform
Improved PFM systems and outcomes in LGAs
Output 6.1: Resource Allocation, Planning & Budgeting in LGAs improved by June 2017
Output 6.2: Improved budget execution and financial reporting by LGAs by June 2017
Output 6.3: Improved oversight and financial accountability in LGAs by 2017
Burning Issues
For 2014/15, no burning issues were identified on KRA 6.
Detailed Findings
Resource Allocation, Planning and Budgeting in LGAs The fiscal transfer template for monitoring fund flows from LGAs to LLGs has been developed and the web
portal is under development with support from the TA team which will be integrated into the PMO-RALG
website. Although progress has been delayed due to the template not being finalized, Regional Experts
Overall KRA 6 Summary
The overall performance on this KRA was very good. All 13 milestones for PMO-RALG are on track although some of the milestones commenced with delay. The performance of regions on their respective milestones is also similar, and most regions have progressed significantly. Technical assistance has been procured by DFID and effectively deployed in PMO-RALG and Regional Secretariats.
- Roll-out of a revenue management system (I-Tax) has commenced. Four five-day training workshops on I-Tax conducted for 110 practitioners from PMO-RALG and regional secretariats have been conducted.
- PFM capacity at regions has been strengthened with the training and operationalisation of the Regional PFM teams and training of 100 PFM champions.
- Quality of oversight and technical support to LGAs has been significantly strengthened across different PFM areas – monitoring of fund flows, financial benchmarking, preparation of financial statements, monitoring of audit compliance and follow-up, training on fraud prevention etc.
- Role of PMO-RALG as the nodal ministry for oversight and management of LGAs on PFM matters
has improved through better coordination and technical assistance.
- Technical assistance to PMO-RALG and regions has helped improve technical expertise as well as financial management practices.
As a proportion of total funds released for this KRA, 97% were spent and/or committed. This amounted to
2,531 million Tsh out of 2,601 million Tsh that was disbursed for the year out of a budget of 2,956 million
Tsh.
31
have been proactive in conducting manual assessments of resource flows from LGAs and LLGs. They have
worked with Regional Secretariat (RS) staff and LGAs to undertake training in the analysis of strategic
linkages to budgets, with 53 of the 67 LGAs being reviewed and eighteen RS staff being trained by Regional
Experts and PFM Champions.
Roll-out of a revenue management system (I-Tax) has commenced. Four five-day training workshops on I-
Tax conducted for 110 practitioners from PMO-RALG and regional secretariats have been conducted. The
short-term Expert procured to conduct the training will now develop an implementation plan for roll-out of I-
Tax, review existing training materials, identify requirements for the creation of an I-Tax Help Desk and
develop monitoring guidelines for PMO-RALG to undertake reviews.
Budget Execution and Financial Reporting by LGAs
100 staff from regions, which were identified as PFM champions, have been provided with initial training. For
more systemic and detailed capacity building efforts, a team of short-term Experts were procured to review
and develop training modules in six key areas of PFM: financial management and reporting, internal and
external audit, loans and investments, planning and budgeting, procurement and revenue enhancement. It is
expected that the new training modules will be available by mid-September 2015, and that training of PMO-
RALG staff and PFM Champions will be undertaken thereafter.
The tool to enable financial benchmarking of LGAs was reviewed by the TA and then comprehensively
discussed at a meeting of PMO-RALG staff in May 2015. The material will be sent to the regions shortly. In
the interim, all ten regions used the draft financial assessment (benchmarking) tool currently being
developed by PMO-RALG as a pilot to conduct quarterly financial benchmarking on matters related to
procurement, bank reconciliation and imprest retirement. LGA Financial Statement Guidelines were
amended and PMO-RALG is working towards improving reporting through IFMIS. A Monitoring checklist
was developed and implemented to enable all LGAs to submit appropriate annual financial reports for CAG
audit. Regional PFM champions have trained LGA staff on generating financial reports from IFMIS and
using them.
Oversight and Financial Accountability of LGAs
Regional Experts have worked with regions to undertake assessments on CAG recommendations in 38
LGAs, and training has been provided to 27 internal auditors. Regional Experts have also worked directly
with their regional PCCBs to conduct training and workshops on fraud awareness and fraud prevention
action plans across all regions. On transparency and financial disclosures, the TA team is working closely
with PMO-RALG. A short-term Expert has been procured to help finalise the financial disclosure norms.
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3.7 PFMRP IV Midterm Evaluation
PFMRP IV is in its 3rd year of its implementation. In order to assess PFMRP implementation progress to
inform the way forward, Government of Tanzania commissioned an Independent Mid Term Review (MTR).
During the joint supervision mission this review team had finalized a final draft report. The review covered all
components and activities undertaken in a period of two and a half years of program implementation (phase
IV).
The review generally concluded in respect to the reform program, that PFMRP IV is “Extremely important,
and indeed critical, to the future development of public financial management in the Government of
Tanzania”. Despite spending being below plans, the report estimated that more than 63% of the program
milestones have been achieved by 50% or more with above 42% being achieved by/over 95%. The review
indicates that recorded PFMRP IV is “progressing in line with its overall expectations of planned
achievements”
The review however highlights some critical strategic aspects where PFMRP IV faces challenges which
need to be addressed.
a. Clear distinction between the PFM cycles of GoT, LGAs and Zanzibar should be established to respect the separate institution arrangements
b. Critical issues affecting PFM across GoT
c. Ownership of each reform initiative by individual component managers
d. Sustainability of the reform programme to improve PFM in long-run
e. Identification of critical and priority initiatives
f. Consistency of PFMRP IV outputs with good PFM practice
g. Availability of development expenditure at end of financial year
h. Effective arrangements to facilitate measurement of impacts of training, studies and other initiative undertaken by the programme
i. Stakeholder arrangements that facilitates achievement of PFMRP objectives j. Proactive positioning of PFMRP secretariat.
Following observed challenges the team provided a number of recommendations for consideration.
Identified recommendations focus on strengthening programme management to ensure sufficient attention
is given to priority initiatives, ownership (of?) and elimination of duplication, designing program initiative(s) to
sustain reform, establishing linkages, benchmarking of expected outputs, improving communication to
stakeholders and strengthening the role of the PFMRP secretariat.
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3.8. Financial Performance of the Programme
In FY 2014-15, the programme received 67% (32.9 bn Tsh) of the total approved budget (49.1 bn Tsh). The
low budget performance was mainly on the account of insufficient releases from the local component (only
30% of the approved Local funds was disbursed). 99% of the approved foreign component budget was
disbursed in 2014-15.
Table 1: KRA-wise budget performance is given in the table below for FY 2014 - 15
Approved Budget Fund Released Fund Release as %
of approved budget
Total Expenditure +
Commitment
Total Expenditure +
Commitment as %
of Funds Released
KRA 1 1,926,350,000 1,386,350,000 72% 1,352,212,158 98%
KRA 2 1,404,570,000 436,250,000 31% 259,327,791 59%
KRA 3 6,161,970,000 5,351,970,000 87% 4,281,874,664 80%
KRA 4 22,048,918,561 14,052,783,561 64% 13,604,875,799 97%
KRA 5 14,603,160,000 9,021,360,000 62% 7,055,810,734 78%
KRA 6 2,956,760,000 2,601,360,000 88% 2,531,360,000 97%
For FY 2013-14, the financial statements of PFMRPIV were audited by the Controller and Auditor General
(CAG). The CAG gave an unqualified opinion for the financial year ending 30th June, 2014.
New Components
The Government Procurement and Supplies Authority has joined the program for the FY 2015/16.
GPSA has assumed an increasing role in the coordination and management of the procurement of
commonly used items.
The President’s Office – Planning Commission (PO-PC) also joined the PFMRP programme in 2015/16.
The programme will support PO-PC to undertake trainings on the Public Investment Manual (PIM) and
help to scope a management information system (MIS) for managing investment proposals.
Donor Coordination
There is a visible improvement in coordination of efforts by the Donor community in support of PFM reforms
in Tanzania. Through the PFM DPG, an opportunity is provided for information sharing around PFMRPIV,
other PFM related donor programmes and thematic discussions around PFM in general. A number of donor
missions have taken place in the last year with donor HQ staff/consultants meeting with PFM DPG members
to provide insights. The PFM DPG membership goes beyond the 6 basket donors and includes bilateral and
multilateral donors. When relevant, CSOs have been called upon to make presentations to DPG group. The
division of labour among the PFM active donors has also been enhanced around KRA participation with a
view to keep the working groups technically focussed, strategic and progressive. A PFM Coordinator has
been recruited to manage the PFM DP group and to liaise with the PFMRP GoT Secretariat. The PFM DPG
is currently co-chaired by DFID and Denmark and the group is supported by DP secretariat.
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4. PFM IN THE CONTEXT OF GBS
The assessments completed during this supervision mission will feed into the GBS Annual Review, including
the GBS Annual Report 2015. The will include the assessment of PFM as an underlying principle. The main
conclusion and proposed dialogue points resulting from the PFM UP assessment are summarised below:
UP Key Concerns to Raise in Dialogue
Continually
strengthened
budgeting and public
financial management
systems
Overall, there are credible signs of continuous improvements to the public
financial management systems and there are constructive technical exchanges
between the Government and DPs. The below concerns reflect issues that need
intervention from high-level policy decision makers:
(a) Budget Credibility
(1) Previous years' budget execution outturns reveal that the budget process
continues to deliver a budget which is not comprehensive and lacks credibility.
Poor budgeting is resulting in a vast number of reallocations over the year, and,
together with weaknesses in commitment controls, it has also recently led to an
important accumulation of arrears. The Government has however taken some
measures to address arrears management through a new Circular on the
reporting of payment arrears which is in the making, and the budget guidelines
for FY 2015-16 includes a strategy for the clearance of stock and prevention of
future arrears. Implementation of the new Budget Act and the VAT Act will be
very important in this regard.
The budget credibility in terms of predictability has continued to be an issue of
concern through the supervision. Delays in budget disbursements to the service
delivery units, severe budget cuts which reflect some challenges in the accuracy
of revenue forecasting and significant reallocations have been observed during
the supervision mission. This reduces budget credibility and severely affects the
implementation of the approved work plan.
(b) Oversight of Parastatals
(1) The oversight of the government on parastatals needs to be reinforced to
monitor
a) their financial situation, b) the actual servicing of liabilities for which the
government has given guarantee (contingent liabilities), and c) the remittance of
revenues and dividends to the consolidated fund; an important step for this is
the enactment of the amendments to the Treasury Registrar Act, which came
into force July 2015.
(2) Unreported government operations (i.e. the budget and accounts of public
authorities that receive funding from the central government) limit the
comprehensiveness of the budget. Further disclosure is necessary to ensure
35
the budget books/financial statements represent a complete picture
c) Key recommendations from the Controller and Auditor General are not
systematically being followed.
(1) The CAG notes several cases of non-compliance to internal controls and
procurement systems, resulting in wastage and inefficiencies. Recently actions
plan to monitor the implementation of recommendations have been drafted for
MoF, PPRA, PMO-RALG and NAOT which should enable a closer follow-up on
implementation. (2) Delay in having an operational Debt Management Office
limits capacity of GoT to strengthen quality of debt management
Conclusions:
Since the last PEFA report (September 2013) and the last assessment of the UP (Nov 2014 and its
updated version of May 2015), tangible improvements have been observed in the following areas,
which conclude to a continuous improvement of public financial management systems in the
country:
1. Revenue Mobilisation measures were announced in the FY 2014/2015 budget and 2 important acts (the
Tax Administration Act and the VAT Act) were presented to Parliament in November 2014. However,
opposition from private sector actors and need for further consultations led to the postponement of
these acts which has offset the impact on revenues originally expected from January 2015.
2. A special budget of TSH 60 billion was released in the 1st quarter of the FY 2014/2015 to start clearing
arrears. The government has also set up a committee in charge of developing a strategy for clearing
further arrears and preventing accumulation of arrears; this should notably use recommendations
coming out of the PER dedicated study on arrears. Additional transparency and tracking of arrears will
be made possible thanks to an important improvement brought to the IFMS system in July 2014:
commitments exceeding the monthly cash limit will now finally be allowed into the system, preventing a
parallel accumulation of arrears on which the Accountant General did not have full visibility.
3. The operationalization of stricter public procurement regulations led to the revision of an important
number of procurement guidelines and documents for the use of procurement entities, which have
continued to receive intensive training by the PPRA. The PPRA is leading a cross-government team on
a e-procurement action plan which should be ready by June 2015
4. A Public Debt Policy has been drafted and presented to Cabinet (?) in the coming months, which should
be the first step in the finalisation of the revised Loans, Grant and Guarantees Act (LGGA) which is
eminently needed to strengthen debt management and allow the Debt Management Office to operate
within the MoF (the act is planned to be tabled before the end of FY 2014-2015).
5. The government has prepared a new Budget Act to Parliament which was approved in February 2015.
The Act is complementary to Public Finance Act, and will notably pave the way for the setting-up of a
Parliamentary Budget Office to support the Budget Committee in the analysis of the budget and the
formulation of recommendations. The Budget Act will put in place a legal framework which is expected
to clarify and set in stone the budget calendar, budget process and budget publication requirements,
and enable stronger legislative scrutiny. .
36
6. Some notable improvements have been made in the transparency of the budget, with publication for the
first time (for FY 2013/2014) of end-year reports (together with the last quarter reports) and the
publication for the first time of Volume I Budget document.
7. The Public Finance Act is under review and is expected to include guidelines on the IPSAS standards,
management of government assets, aspects related to the Internal Auditor general’s office, etc.
8. Public Investment Manual and guidelines are in place and related capacity building activities are due to
commence soon.
However, multiple PFM weaknesses persist, which contribute towards the lack of budget credibility. These
include weaknesses in the budget preparation system (over-budgeting in the development budget, under-
budgeting in some areas of recurrent expenditure) and the budget execution system (cash rationing due to
resource uncertainty, lack of commitment controls). As a result expenditure arrears have been
accumulating, which are paid out of budgets in following years at the expense of planned service delivery. At
this stage, three major concerns have been identified (see box above). While there is evidence that these
concerns are being addressed, there is a need to go beyond technical measures. High level commitment
and continuous dialogue with partners on these concerns are necessary for this underlying principle to
continue being assessed as satisfactory.
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5. CONCLUSION AND RECOMMENDATIONS
In conclusion, the joint assessment concluded that PFM reforms under PFMRPIV are making
satisfactory progress. The Supervision Mission has noted several programme achievements in the last
year, which confirm that the reform programme is credible and delivering expected results. However, it must
be noted that some key milestones have been delayed and/or are pending and there must be a significant
thrust given to ensure that such milestones are achieved soon.
The joint assessment agreed on the continued relevance of the `burning issues’. Although progress is
noted in many areas, none of the burning issues identified for 2014-15 have been completely
addressed, although most of them were already carried forward from the previous year. Out of the 9
issues prioritised in 2014-15, 6 issues were partially addressed and 3 remain unaddressed. The status of
progress on the burning issues is outlined in Annex A and all the 9 burning issues remain relevant for 2015-
16, as indicated in Annex B.
The TWG discussions confirmed that component managers are engaged and that activities are
implemented and developed further. At the same time the volume of work that is scheduled for completion in
the next 12 to 24 months remains ambitious. It was also observed that there was generally slow uptake of
programme activities in the first half of the financial year. There is, therefore, need for continued
engagement by component managers throughout the year for the programme to achieve its
objectives.
It was observed that implementation of many of the activities across KRAs was delayed due to insufficient /
late release of government funds. Overall disbursal by the government stood at less than 30% for 2014-15.
Needless to say, lack of predictable and complete fund flow affects the overall budget execution, both in
quantitative and qualitative ways. It is also critical that the reform management focuses solely on funding
reform activities being supported under PFMRPIV. Due to scarce budget resources there is a tendency
among components to use PFMRPIV funds for recurrent activities. There is urgent need for government
to ensure that the government's share of the budget is provided fully and in a timely manner, as this
will reflect its commitment to PFM reforms.
The management arrangements as part of the programme design enable robust technical discussions on
PFM issues, particularly during the mid-year review and during the annual joint supervision mission.
However, these technical discussions are generally confined within the technical working groups. There is
limited strategic engagement and discussions at higher administrative levels within MoF or beyond. Given
the fact that several PFM issues have multiple causes and cross-cutting implications that go beyond specific
components, there is need for technical discussions at a more strategic level with key decision-
makers.
38
The continued strengthening of PFM systems is a critical element for accountability, transparency and
ultimately good governance. As such, the overall performance of PFMRP as a reform program and the
results that it produces will continue to be under close scrutiny by Government and Development Partners. It
is important that PFMRP strengthens its collaboration with different stakeholders to build and
sustain momentum on PFM reform agenda.
A mid-term review of the programme has recently taken place. The review exercise was an opportunity for
the programme to assess the impact of the reform activities undertaken as well as to identify challenges to
be faced in the future. Although the mid-term evaluation indicates that the programme is making good
progress and contributing to improving PFM systems, it also highlight key challenges that the
programme needs to address.
PFMRPIV stands at a critical juncture. After three years of making good progress, it is well poised to deepen
and institutionalise PFM reforms, both at central as well as in local government levels. There is strong
commitment from the donor group to PFM reforms. Similar engagement and commitment within all levels of
the government will help PFMRPIV reach a higher trajectory of reform.
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ANNEX A: PFMRP IV M&E RESULT FRAMEWORK AS AT SEPT 2015
PFMRP ANNUAL MILESTONES STATUS OF UP TO FY 2014/15 PFMRP IV M&E RESULT FRAMEWORK 2012 -2017
STATUS AS AT 30th JUNE 2015 CODE: MILE STONE DESCRIPTIONS STATUS COMMENTS ON THE STATUS RESPONSIBLE
COMPONENT
KRA 1: Revenue Management
Output 1.1: Improved quality of forecasting of fiscal aggregates for three years on a rolling basis
1.1.1 Undertake a study to identify ways of improving tax revenue forecast and an action plan by June 2014 – this milestone to be revised to focus on the PER study by World Bank.
Delayed Milestone to be change to base on the MACMOD simulation and update of information with new poverty and GDP data
PAD
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.
Achieved with delay
The final report discussed and action plan developed in February 2015.
PAD
1.2.2 Action plan to implement the recommendations from review of non-tax collection developed by June 2015
Achieved Action plan to implement the recommendations from review of non-tax collection was developed in February 2015.
PAD
1.2.3 Costed action plan incorporated in FY 2015/16 for implementation
Achieved The developed non-tax revenue action plan was costed and will be implemented starting in FY 2015/16.
PAD
1.2.4 Submission of a bill to Parliament to enact Tax Administration Act for the purpose of establishing a common tax procedure among different taxes collected by Tanzania revenue authority (TRA) by February 2014
Achieved Tax Administration Act was presented to Parliament for the first reading in June 2014
PAD
1.2.5 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 Laws, rules and regulations for local government revenue system reviewed to improve LGA own sources.
PMO-RALG
1.2.6 Take policy action to improve revenue mobilization from natural resource sectors by June, 2014
Achieved Review of antiquity entrance fee is completed MNRT
Review of Forest loyalty charges for forest product has been done and new charges are in use
Review of photographic tourism regulation is in final stage and Collection of tourism development levy started (TRA collected on behalf of MNRT)
1.2.7 Computerized revenue collection to at least 50% from MNRT by June 2016
Achieved 80% of the revenue collection systems have been integrated and the Ministry anticipates to complete all systems by FY2015/16.
MNRT
1.2.8 Review the current system of tax exemptions with the Achieved The VAT Act was passed in November 2014. Regulation that PAD
40
CODE: MILE STONE DESCRIPTIONS STATUS COMMENTS ON THE STATUS RESPONSIBLE COMPONENT
value-added Tax (VAT) regime and amend the VAT Act with a view to be in line with international best practices by November 2014
contain detailed rules on implementation of the Act were enacted by 1st July, 2015.
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
Achieved The action plan will be discussed in PMO-RALG management meeting scheduled before the end of September.
PMO-RALG
1.3.2 Local Authorities Tax administration teaching and practice modules established and TOT completed for all finance management staff at the regional levels by June 2015
Delayed 514 Local Government Revenue Officers, Treasures and Economist trained for five days on revenue collection plans. Training Modules are currently being finalized.
PMO-RALG
1.3.3 PMO - RALG staff and Finance Management Officers at RS are trained in tax revenue plans and budgets to spearhead LGAs tax reviews and reforms, June 2014
Achieved 25 PMO-RALG and 25 RS Finance Management Officers were trained on:
PMO-RALG
1) Introduction to revenue planning
2) Revenue situation analysis, vision and mission, objectives and targets
3) Revenue forecasting
4) Overview of revenue budgeting in Public Sector
5) LGA revenue budget preparation process
6) MTEF budgeting
7) Preparation of LGA Tax revenue Plans and Budgets
8) LGA revenue budget implementation, monitoring and control
9) Scrutinizing LGA plans and budgets
1.3.5 Establishment of known and clear revenue data base by each source of revenue, presence of trained personnel and a clear follow up arrangement at PMORALG and RS levels by June, 2015
Delayed 150 staffs (Revenue Accountants, Cashiers, Treasurers, IT experts and FMOs) from LGAs, RSs and PMORALG were trained on I-Tax System configurations and application. I-tax software procured.
PMO-RALG
Contract to procure computers, Printers, scanners and other computer related equipment’s for roll out of i-Tax system to the designated Regions and LGAs was signed. Funds committed pending on completion of supplies of the Computers.
LGAs Section at PMO-RALG was facilitated to monitor capacity on LGAs & RSs revenue collection. CFR and CDR consolidated and reported. 168 LGAs Plans and Budget for year 2015/2016 scrutinization conducted.168 LGAs responses and action plan on CAG reports for the year 2013/14 scrutiny done
1.3.6 Completed study on the effectiveness, relevancy and Achieved A draft report of LGAs Finance Act Amendments has been PMO-RALG
41
CODE: MILE STONE DESCRIPTIONS STATUS COMMENTS ON THE STATUS RESPONSIBLE COMPONENT
sufficiency of the provisions of the Local Government Finances Act No. 9 by June, 2014
with delay prepared and shared to stakeholders. Stakeholders meeting to discuss the proposed amendments on the Local Government Legislation (Act No. 7, 8 and 9) conducted.
1.3.7 A bill for an act to amend the Local Government Finances Act No.9 of 1982 is finalized and submitted to the Cabinet by June 2014
Achieved with delay
A Cabinet bill of an Act to amend the Local Government Finances Act No. 7, 8 & 9 of 1982 was prepared and some proposed sections of CAP 290 were amended and ready to be used by LGAs.
PMO-RALG
1.3.8 Improvement of Financial Management in LGAs by June 2015
On track Routine Inspection was conducted on LGAs Procurement, Revenue Enhancement and Asset Management, Loans and investment to 24 LGAs for the purpose of determining legal compliance, fit for purpose, policy adherence and value for money achieved by respective LGAs.
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 (Development Cooperation Framework, DCF) reviewed, disseminated and put in operation by March 2014
Delayed The DCF document is in Government approval process EFD
1.4.2 Revised AMP user guideline clearly communicated to both parties by December 2014
Achieved Aid Management Platform (AMP) user guidelines were updated in line with the upgraded system and disseminated to MDAs and DP AMP focal points. Moreover, AMP administrators from the EFD and DFIMS were trained on AMP new version.
EFD
1.4.3 Analysis of the trends of the direct project fund portfolio disbursed via exchequer system published and shared annually by June 2015
Achieved Collection, compilation and analysis of data have been done. The draft 2013/14 and 2014/15 Official Development Assistance (ODA) report is being finalized and will be ready for sharing in October, 2015.
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
Delayed A roadmap for implementing is on finalization processes and the chart of accounts as well by EASTAFRITAC will be available in October, 2015.
GBD
2.1.2 Chart of Accounts modified to accommodate program based budgeting by Aug 2013
Achieved Chart of accounts has been modified to accommodate PBB. GBD
2.1.3 MTEF reviewed to make program based budget compatible by September 2016
On track Working session with the pilot MDAs prepared PBB templates to review the MTEF from the existing MTEF budgets was conducted. Budget officers from pilot ministries in collaboration with technical experts from EASTAFRITAC (IMF) consolidated and populated the template of PBB using 2014/15 budget data
GBD
42
CODE: MILE STONE DESCRIPTIONS STATUS COMMENTS ON THE STATUS RESPONSIBLE COMPONENT
being a model for 2015/16 budget.
Training for 15 budget officers who are PBB core group was held for two weeks in South Africa.
2.1.4 Progress on the PBB Action plan implementation annually Delayed Currently, the PBB budget preparation is on underway but several activities are delayed
GBD
2.1.5 Completed phased training for all MDAs and RSs by September 2016
Pending The training for MDAs and RSs will be conducted upon the completion of developing an action plan.
GBD
2.1.6 Completed phased training for all LGAs by September 2016
Pending The training for LGAs will be conducted upon the completion of developing an action plan.
GBD
Output 2.2:Increased effective utilization of Planning and budgeting tools by 2016
2.2.1 MTSPBM reviewed by June 2015 Achieved MTSPBM has been reviewed and the draft document has been produced and updated. Guideline will be used for planning and budgeting.
GBD
2.2.2 Sixty MDAs, 21 RSs and 133 LGAs trained in MTSPBM by December 2014
On track MTSPBM was reviewed in December 2014; SBAS tool to enable MDAs and RSs prepare for the 2015/16 budget was upgraded and MDAs used the upgraded tool to prepare the said budget.
GBD
2.2.3 Reviewed MTSPBM to be applied during FY 2013/14 Delayed To be applied to prepare budget for FY 2014/15 GBD
2.2.4 Annexes to budget book volume II for Executive Agencies completed by June 2014
Delayed MTEF books from 130 Government Agencies were scrutinized by a team of experts from central ministries. This is an important step towards preparation of annexes to Volume II of Budget Books which will improve transparency on financial management among executive agencies.
GBD
2.2.6 At least 10 PER Main Dialogue meetings held by June 2016
On track The PER meeting conducted. GBD
2.2.7 Phased training to MDAs, RSs and LGAs Budget Committees on resources prioritization and planning
delayed Training to MDAs, RSs and LGAs on the reviewed Planning and Budgeting manual is awaiting approval of the draft document.
GBD
2.2.9 Budget reallocation warrants published by September every year
delayed 2014/15 budget reallocation will be published in MoF website. GBD
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
Achieved The process of collecting, scrutinizing and submitting all LGAs own source budget information to National Budget guideline Committee has successful been done.
PMO-RALG
2.3.2 Recommendations of various studies on LGAs budget allocation formula reviewed by January 2014
Achieved The analysis on budget allocation formula has been completed and final report submitted in March 2015.
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 2014
Achieved with delay
A budget allocation formula was reviewed and report disseminated to key stakeholders (PMO- RALG, MoF, PO-PSM, RSs, LGAs and Sectors) for comments and a Cabinet paper to
PMO-RALG
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present the recommendations prepared.
2.3.4 All LGAs budget allocation formulae reviewed by June, 2014
Achieved with delay
LGAs budget allocation formulae reviewed PMO-RALG
2.3.5 All reviewed LGAs budget allocation formulae applied in the budget preparation during 2014/15 for the FY 2015/16 budget.
Delayed Some recommendations provided by a consultant have been considered for implementation. The use of budget allocation formulae in budget preparation awaits Cabinet approval.
PMO-RALG
2.3.6 Monitoring arrangements are in place for measuring deviations in actual releases against all formula-based allocations to LGAs by June 2015.
Pending Pending achievement of above milestones PMO-RALG
Output 2.4: Quality and comprehensiveness of budget documentation as well as public access to key fiscal information
2.4.1 Public Access to key fiscal information: Timely publication of key fiscal information as
On track Budget guidelines, budget books and citizen budget published but quarterly budget execution reports are delayed.
GBD
Budget guidelines published by December every year
Executive budget proposal (Vol I to IV) as submitted to Parliament Published by June every year
Approved budget (all volumes) published by September every year
Quarterly budget execution report published within a month after end of quarter
Year-end budget execution report published by October every year
Citizens budget published by November every year
KRA 3: Budget Execution, Transparency and Accountability
Output 3.1 Strengthened public sector procurement by June 2015
3.1.1 Action Plan for implementing Public Procurement Act is developed by December 2014
Achieved The action plan for implementation of PPA, 2011 was approved by a steering committee comprised Heads of Institutions (PPRA, PPD, PPAA, PSPTB, POPSM, eGA, PCCB and MSD).
PPRA
3.1.2 New public procurement regulations prepared and issued by June 2013
Achieved with delay
Public Procurement Regulations 2013 prepared, signed and gazetted on December 2013.
PPD
3.1.3 Procurement training needs assessment exercise completed by Dec 2014
Achieved TNA reports and Training Plans for LGA's, and MDA's Procurement and Supplies staff have been completed and submitted.
PPD
3.1.4 Procurement Plans aligned with MDAs, LGAs and Parastatals Institutional Strategic Plans by June 2015
Achieved It has been mandatory that Public Procurement plan to be part of the strategic plan and budget in the new PPA. A 3 days’ workshop was conducted for chairpersons of LGAs council committees for Finance and planning do deliberate on various procurement issues. 150 participants attended the workshop.
PPRA
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3.1.4 [300] procurement staff trained on public procurement by June 2017 as per TNA.
Pending The action plan for training procurement staff has been developed as per TNA recommendations, the plan will be implemented starting FY 2015/16.
PPD
3.1.5 Strategy to develop Procurement Management Unit (PMU) structures in Public Sector by June 2015
Delayed Proposed Procurement Management Unit Structures submitted to approving authority.
PPD
3.1.6 Procurement and supplies staff database maintained and updated by December, 2015
On track Particulars for 2261 procurement and supplies staff for Arusha (180); Kilimanjaro (268); Dodoma (179); Singida (114); Pwani (139); Ruvuma (115); Lindi (175); Mtwara (152); Rukwa (66); Tabora (41); Kigoma (53), Manyara (69), Dar es Salaam (599) and Geita (111) regions have been verified and registered.
PPD
3.1.7 National procurement policy draft is finalized by Dec 2014 Achieved Draft National Public Procurement Policy (for the whole public sector) finalized and submitted to IMTC for approval. In order for this policy to be submitted to the cabinet, it has to be accompanied with a strategy, the finalization of the latter being expected for the end of October 2014.
PPD
3.1.8 Stakeholders’ comments incorporated by June, 2013 Achieved Stakeholders’ meeting conducted and comments incorporated in the draft National Procurement Policy.
PPD
3.1.9 PPDs’ office and staff capacity enhanced by June, 2017 On track ● 4 PPD staff attended 7th East African Procurement Forum in Kenya under the theme of “Promoting Sustainable Socio Economic Development through Public Procurement” in November 2014
PPD
● 7 PPD officers attended a study visit on monitoring and evaluation of public procurement policy implementation in Zambia, while preparations for another 7 PPD officers to attend study visit has been completed
3.1.11 Annual Procurement Performance Evaluation Report prepared and published annually
Achieved Annual Performance Evaluation Report for FY 2011/12 was prepared and submitted to the Minister in October, 2012.This report was submitted to the Parliament, PEs and published PPRA website.
PPRA
3.1.12 National procurement policy (NPP) strategy developed and implemented by June 2015
Delayed Draft National Procurement Policy Implementation Strategy has not been completed.
PPD
3.1.14 National procurement policy and procurement law synchronized by June, 2015
Delayed A consultative workshop with stakeholders to review Public Procurement Act, 2011 and its regulations conducted in April, 2015 and comments provided. Comments are incorporated and the synchronization will be done upon approval of procurement policy.
PPD
3.1.15 Monitoring the implementation of the National procurement policy by June, 2016
On track No objection for TORs on evaluation of the efficiency for the public procurement system in Tanzania has been granted by
PPD
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DPs.
3.1.17 1000 Stakeholders acquainted with the National procurement Policy by June, 2016
Pending Awaiting the launch of the National Public Procurement Policy. PPD
3.1.18 Strategy on raising stakeholders’ awareness on contract award, complaints/disputes developed and implemented by June 2016
On track ●580 members attended stakeholders meeting on how to develop complaint responsive mechanism in Arusha, Iringa, Kilimanjaro, Mbeya, Njombe, Tanga, Manyara, Katavi, Lindi, and Mtwara.
PPAA
●Final Draft Complaint Responsive Mechanism document has been prepared and is under compilation.
Output 3.2: Strengthened capacity of MDAs Rs and LGAs in Cash Management by 2015
3.2.1 600 staff of MDAs and LGAs Trained on cash Management using standardized materials by June 30 2015
On track 185 staff from MDAs and LGAs trained in cash management (Preparations of Cash flows and Banking arrangements) in FY 2014/15. A total of 541 staffs have been trained to date.
ACGEN
3.2.2 Six bank accounts operated by each LGA by December, 2013
Achieved Each LGA is now operating with six bank accounts; the seventh a/c for water was being opened.
ACGEN
3.2.3 ACCGEN to present a monthly report on payment arrears to ceiling committee effective Dec 2013
Achieved Reports are prepared monthly and presented to Commissioner for budget. Worthwhile, this is not yet an agenda in the ceiling committee
ACGEN
3.2.8 Stakeholders’ comments incorporated in the NPP by June 2013
Achieved Stakeholders meeting conducted and comments incorporated in the draft National Procurement Policy
PPD
Output 3.3: Strengthened public debt management capacity by 2015
3.3.1 The agreed actions arising from the Feb. 2012 World Bank debt management report shared with key stakeholders by July 31, 2012
Achieved The report has been shared and it is available in the Ministry of Finance website
PAD
3.3.2 Debt management policy developed and shared by June 2014
Achieved The National Debt Strategy was reviewed and National Debt Management Policy was developed and the Mid Term Debt Strategy will be produced in annual basis.
PAD
3.3.3 Capacity of 50 Public Debt Management Staff enhanced to undertake DSA on external, domestic debt and contingent liabilities by June 2014
Delayed 20 staffs were trained on monitoring and handling of PA&OBs contingent liabilities in June 2015, stakeholders were sensitized on functions of Debt Management Office. DSA is on-going and the report will be completed in September.
PAD, ACCGEN
3.3.4 Reviewed Government Loans, Guarantees and Grants Act submitted to the Cabinet by June 2014
Delayed The Government loans, Guarantee and Grants Act No. 30 of 1974 was reviewed.
PAD
3.3.5 Debt Management department established by June 2016. On track Establishment of DMO office approved by PO PSM in May 2014 and recruitment process is on-going.
PAD
Output 3.4: Improved Integrity and content of government financial statements and migration from IPSAS cash Basis to IPSAS accrual is progressing in accordance with the plans.
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3.4.1 The agreed actions arising from Feb 2012 World Bank Debt Management report shared with keys stakeholders by July 31, 2012
Achieved The report has been shared and it is available in the Ministry of Finance website
PAD
3.4.2 Training to MDAs, RSs and LGAs accounting officers to develop awareness on IPSAS Accrual by June 2014
Achieved with delayed
636 staff (Chief Accountants from MDAs, Public Accounts Committee (PAC) members, staff from foreign embassies and permanent secretaries) trained in IPSAS Accrual.
ACGEN
3.4.3 Capacity building to 250 staffs from MDAs, RSs and embassies to enhance skills in IPSAS Accrual by 2014.
Achieved 250 staff from MDAs and Embassies trained in IPSAS accrual. ACGEN
3.4.4 Public Finance Act. of 2001 and regulations reviewed to address migration to IPSAS accrual by 2016
On track Public Finance Act has been reviewed and stakeholders’ comments incorporated and 36 ACGEN staff were trained in FY 2014/15 thus a total of 352 staff trained on the same.
ACGEN
3.4.5 Consolidated template of financial statements to include MDAs, Rs, LGAs, Controlled entities and GBEs developed by June 2016
On track Currently the template of financial statement of MDAs and RS has been completed. The rest of entities will be taken on board (GBEs and LGAs).
ACGEN
3.4.6 Quarterly Monitoring of contingent Liabilities of PA&OBs conducted by June 2015
Delayed Quarterly monitoring of contingent liabilities of PA&OBs was not conducted but 20 staff were trained on Monitoring and handling of PA&OBs contingent liabilities in June 2015
PAD
3.4.7 Annual Monitoring of Guarantees approved by GoT for PA&OBs and for PPP financed projects monitored annually by June 2015
Delayed Due to non-availability of local funds, the activity was not done. PAD
3.4.8 Plan for migration towards IPSAS Accrual accounting is completed by December 2013.
Achieved The 5 year road map is in place and often reviewed to be fully compliant to IPSAS.
ACGEN
3.4.9 Plan is approved for execution and stakeholder information sessions have been completed by January 2014
Achieved The plan has been approved and is in use. Raising to some stakeholders awareness has been done (e.g. PAC members). Other stakeholder will follow.
ACGEN
3.4.10 All legislative and policy supports have been identified by 31st Dec.2014
Delayed Some of the legislative and policy supports have been identified such as accounting policy, PFA and Accounting manual.
ACGEN
3.4.11 Milestones for the transition have been identified and approved (E.g. Public Finance Act of 2001 and Regulations) amendments by October 2014
Pending Pending the completion of milestone 3.4.5 (Review of PFA and its Regulations) Some milestones have been identified
ACGEN
3.4.12 Consolidated accounts with IPSAS Accrual by June 2017 On track Chart of accounts in use by LGAs has been reviewed; the harmonization to integrate with central government chart of accounts process is on-going. Preparation and communication of reporting templates for consolidation has been completed.
ACGEN
3.4.13 ACGEN to compile and produce financial statements disaggregated on the basis of economic classification and by sectors
On track This need to involve the Budget setup in order to change the current format of CoFoG
ACGEN/CB
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Output 3.5: Improve accountability in management of Government asset management for supporting migration to IPSAS Accrual
3.5.1 Uploading of 70 additional MDAs in EPICOR by June 2017
On track 51 MDAs and Regional secretariats uploaded in SAGE. GAMD
3.5.2 Asset Management (tracking) software installed, tested and users are trained on use of software by June 2015
Achieved Assets information software acquired installed and tested; 20 Region stock verifiers trained on the uses of SAGE.
GAMD
3.5.3 GAM capacity enhanced on asset management function by June 2016
On track Eighteen (18) GAMD officers attended short courses on risk based inspection and
GAMD
34 computers and UPS acquired and distributed to all regional offices.
3.5.4 Asset Management Policy prepared and submitted by June 2015
Delayed Final Draft of Public Assets Policy Framework (PAPF) and Standard operation procedures were submitted. Preparation of Stakeholder's meeting scheduled to be conducted in financial year 2015/2016.
GAMD
3.5.5 Valuation of Government assets in 34 MDAs and RSs completed by June 2017
On track Valuation of Government Assets in Nine (9) MDAs has been completed and Valuation of Government assets in 50 MDAs is expected to commence after contract signed
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 Achieved Operation Plan for 5 year 2013 – 2017 approved and disseminated to all Internal Audit Units.
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
Achieved a) The manual was prepared. Consultant is incorporating comments from stakeholders.
IAG
b) Quality assurance and improvement program procedures (QAIP) manual was prepared, approved and disseminated.
c) Consultant for preparing Audit Committees guidelines selected.
d) 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 was produced for guidelines on quality assurance. Stakeholders’ consultation conducted.
4.1.3 450 Internal Auditors trained on Quality Assurance and Improvement programme Procedures Manual by June 2016
On track 150 internal auditors from MDAs and LGAs trained on QAIP procedural manual.
IAG
4.1.4 Independent Quality Assurance Assessment of (Internal Audit Units) IAUs in MDAs and LGAs by June 2016
Pending Implementation of this milestone is subject to completion of milestone 4.1.3 above. Independent evaluator will be engaged in
IAG
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FY 2015/16.
4.1.5 Effective IAU and audit committee established and internal auditors conduct compliance audit and evaluate effectiveness of internal control in MDAs and LGAs by June 2016
On track a) Internal auditor’s database established. IAG
b) 152 internal auditors trained on business processes of EPICOR, professional courses (CIA, CFE and CPA) and HCMIS
c) 375 members of Audit Committee form MDAs and RSs were trained on Audit Committee Guidelines.
d) Internal Auditor General Division Operational Plan was reviewed.
e) A workshop on awareness of roles of Internal Auditors was conducted to 955 stakeholders from MDAs and RSs.
153 members of Finance Committee and 38 Head of Internal Audit Units have been trained on their responsibilities and relationships
4.1.6 Acquisition of audit software and training of audit software conducted to 150 IA staff by June 2015.
Achieved a) The IDEA software has been procured and 60 Internal Auditors from Northern, Southern and Central Zones in Arusha, Mtwara and Morogoro were trained on how to use the Software. The software has been used centrally at IAG office to conduct data analysis in various engagements such as verification of Government Debts etc.
b) Following upgrade of IDEA V 8.5 to V 9.2 training of three Internal Auditors were trained as System Administrators form IAGD
c) Procurement of TEAM-MATE Software with all five components active is in the final stage of signing the contract. The software will mark the end of traditional ways of manual auditing to computerise auditing in which time to be involved in planning of audit engagements and producing audit reports in terms of financial and human will be reduced as compared to manual auditing.
IAG
4.1.7 Roll-out of Computerized Audit is done by June 2017 Pending IAG Training of 15 champions from IAG office who will be conducting training to other Internal Auditors has been conducted.
4.1.8 Technical Audits are conducted for 100 Projects by 2016 On track 200 Internal Auditors from LGAs and RSs-Northern and Central zones were trained on basics of conducting Technical audits on development projects. And 51 development projects have been audited (FY 2013/14 -30 and FY 2014/15 - 21) respectively.
IAG
4.1.9 Implementation status of corrective measures for internal On Track a) Template for report preparation issued, IAU in MDAs and IAG
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and external audits (CAG recommendations) submitted by all the IAUs in MDA/LGA to IAGD on quarterly basis by June 2014
LGAs instructed to report on time. A Unit within IAGD to report on National Audit recommendations have been established.
b) Submission of quarterly report from MDAs and RSs
Q1-33 reports were received
Q2-34 reports were received
Q3-39 reports were received
Q4-20 reports were received
c) Submission of quarterly reports from LGAs
Q1-97 reports were received
Q2-83 reports were received
Q3-85 reports were received
Q4-61 reports were received
4.1.10 550 internal auditors and other stakeholders trained in risk management process and risk based audit by June, 2016.
On track a) 601 Internal auditors and other stakeholders have been trained on risk based and risk management process from MDAs, RSs and LGAs as follows
IAG
i) 282 Internal Auditor trained on risk based audit
ii) 419 Head of Department trained on Risk management process
Monitoring the Implementation of Risk Management Guidelines was conducted to 57 MDAs/RS and 113 LGAs
4.1.11 300 Accounting Officers, Head of Departments, Audit Committee members and internal Auditors trained on the guideline for Fraud Risk management, Internal control, Risk Management Monitoring and Evaluation by June 2017 (Target: 100 persons/year)
On track a) Awareness to 117 Heads of Departments from 45 MDAs and 56 from 19 LGAs on the Guidelines for Enhancing Internal and Fraud Risk Management Framework
IAG
b) Awareness to 97 Heads of Departments from 20 MDAs from 19 LGAs on the Enterprise Risk management, Monitoring and Evaluation framework
4.1.12 Study to assess the ICT needs for effective internal audit management and control by June 2015
Delayed The activities under this milestone were not implemented because the Government was in the process of integrating all its system. The funds were reallocated to training of Heads of Departments and Audit committee members and internal auditors on Risk Management.
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
Achieved An AFROSAI-E team elevated NAOT to level 3 of AFROSAI-E capability model in early 2013. The ambition is now to move towards level 4. As such, a report on need to revise the Laws and Policies was submitted to the Attorney General’s Office for action, however with the ongoing Constitutional review, the
NAOT
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amendment of various laws will follow after the new Constitution. NAOT submitted to the Constitutional Review committee NAOT views on Articles related to NAOT meanwhile addressing Independence of the CAG.
4.2.1 Maintain and enhance CAG independence by June 2016 On track The attainment of this milestone is depending much on the new constitution but laws governing Public Audit were reviewed and report submitted to the Attorney General for further action and a Conference for legal officers from AFROSAI-E member countries was conducted in April 2015 at Giraffe Hotel on SAIs independence.
NAOT
4.2.2 100% of auditors are moved from auditee premises to NAO offices by 2016
On track 80% of the work has been completed to ensure auditees are moved to NAO premises. Drawings for Iringa and Mara projects have been prepared, contactors identified and contracts awarded. Construction of Dodoma building was completed in September 2014. A new contractor for Sumbawanga project has been identified and awarded with a contract
NAOT
4.2.3 300 Auditors trained on Risk Based Audit and 200 in IT audit by 2014
Delayed 200 auditors trained on risk based audit NAOT
4.2.4 Five Value for Money audit reports to be produced each year by NAO staff without technical assistance from external consultant by June 2016
Achieved Five performance audit projects have been completed submitted to the President of URT in March 2015 and finally tabled in Parliament in May 2015. Four (4) NAOT staff trained on specialized Project evaluation in Kampala-Uganda.
NAOT
4.2.5 600 Auditors trained on international standards of auditing and full adoption of International Audit Standards by June 2016
On track 300 Auditors trained on international standards of auditing and full adoption of International Audit Standards.
NAOT
Audit methodology in line with ISSAIs guidelines adopted by June 2013
Achieved Alignment of audit methodology is progressing well, with guidelines already in place.
NAOT
4.2.7
4.2.8 Scoping study to ascertain the parameters of the outstanding matters Database is completed by November 2015
On track 47 auditors from Shinyanga, Simiyu, Mwanza, Kagera and Kigoma were trained on the system of tracking outstanding matters raised in CAG reports
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 June 2015.
Delayed Team Mate software has been upgraded to meet the demand of functions required. Baseline data regarding CAG recommendation has been collected, analysed and first draft report submitted to NAOT management and discussed. Comments have been submitted to a consultant and data entry will follow after consensus and acquisition of software.
NAOT
4.2.10 600 Auditors trained on audit commanding language Delayed 120 Auditors were trained on ACL in September 2014. The NAOT
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(ACL) and other audit based software by June 2014 training helped auditors to audit computerized systems on quality review. This makes a total of 320 auditors been trained on ACL.
4.2.11 NAO Headquarter is connected to 10 Regional offices using WAN annually
Achieved Currently 16 NAOT regional offices out of 25 connected to NAOT headquarters. Local Area Network (LAN) for the four (4) regions has been established. The WAN installation is ongoing by TTCL and a self-assessment exercise was conducted in May 2015 under PO-PSM facilitation and supervision. The draft has been prepared and submitted to NAOT for review and comments.
NAOT
4.2.12 Two of five Team mate modules applied in auditing by June 2016
On track Four Teammate modules activated and customized with support from CCH (Teammate vendors) and the application will start on October.
NAOT
(2) 100 auditors has been trained on how to use the additional Teammate models
(3) 100 auditors trained on updated RAM and introduction of time recording system. Currently 3 departments have been subjected to the pilot study on application of time recording system.
(4) NAOT Internal control manual developed (5) 105 Auditors have been trained on quality assurance.
Output 4.3: Improved transparency on audit report (Central, Local and Parastatals levels) to strengthen scrutiny and accountability)
4.3.1 Citizen audit reports published annually for the 5 General audit reports two months by June 2017
On track NAOT simplified and translated 5 CAG Annual General Audit Reports into Swahili language for FY 2012/13 to enable citizens to understand the reports and contribute in the audit process. A total of 6000 copies of the Citizen Audit Reports were printed and 3570 were distributed.
NAOT
Output 4.4:Improved Performance of Parastatals by June 2016
4.4.1 Ten (10) Parastatals signed Performance Contracts with TR by December 2014
Achieved with delay
Eleven Board Chairpersons of parastatal signed performance contract with TR. The boards include : Gaming Board of Tanzania; Tanzania Port Authority; Tanzania Communication Regulatory Authority; Tanzania Insurance Regulatory Authority; Energy and Water Utilities Regulatory Authority; Surface, Marine and Transport Regulatory Authority; Arusha International Conference Centre; Tanzania Civil Aviation Authority; National Health Insurance Fund; Tanzania Agriculture Development Bank; and Tropical Pesticides Research Institute. In that regard, the oversight and performance of TRO in supervising of
TR
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parastatals improved
4.4.2 Database on Parastatals set up and functioning by December 2014
Achieved The TR’s database (TRIMS) developed need to be transferred to the New TR Office at Samora and updated.
TR
4.4.3 M&E mechanism for measuring Parastatals compliance rate set up, reviewed and implemented by June 2015
Delayed Contracts for developing M & E mechanism for measuring parastatals compliance rate set is expected to be signed in the Mid - August, 2015.
TR
4.4.4 New TR's Bill presented to the Parliament by June 2014 Delayed Preparation of the 1st Draft of the New TR Bills and its Regulations has been completed. The Draft will be submitted to the Inter Ministerial Committee (IMTC) for their approval before submission to the Cabinet
TR
4.4.5 150 Parastatals Act Reviewed to be in line with the New TR Act by June 2014
Pending Awaiting for the New TR Bill to be in place TR
4.4.6 TR's Office Capacities enhanced by June 2015 On track A Review of Training Needs Assessment was undertaken which enabled the preparation of a Training Programme for 65 staff. In addition, 24 staff were attended various courses on investment, Result based Management and management audit. Additionally, 120 staff trained on TRIMS.
TR
4.4.7 Closing of books of accounts for Parastatals harmonized and audit modalities agreed by 2016
On track This milestone has been shifted to TR from NAOT but the implementation is subject to availability of new TR Act.
TR
Output 4.5: Strengthened Capacity of oversight functions of Parliamentary Accounts Committees by 2016
4.5.1 Capacity building interventions to PACs conducted annually
Achieved Accountability conference for three committees (PAC, LAAC and Budget Committee) was conducted in November 2014 in Bagamoyo and two accounts committees (PAC&LAAC) conducted expenditure tracking visits for projects implemented in rural and urban areas; a study tour in Uganda for twenty (20) members of PAC and LAAC was conducted.
NAOT
Output 4.6: Improved public procurement performance by PEs by 2015
4.6.1 Annual PPRA audit results confirm positive trend on a yearly basis
On track 16 contracts to carry out procurement audits comprising of 47 PEs have been signed. Execution of the contracts is on progress.
PPRA
4.6.2 Revised Procurement Implementation and monitoring tools issued by March 2014
Achieved PPRA in collaboration with TANROADS HQ and financial analysis expert from the University of Dar es salaam had a retreat in Bagamoyo from 19th to 23rd December 2014 to review the procurement implementation tools
PPRA
4.6.3 New Public Procurement Act, 2011, Regulations and Tools disseminated to major PE's and other key stakeholders by December 2015
On track Three (3) dissemination workshops on PPA 2011 and its regulations conducted. PPRA attended the 7th East African Procurement forum under the theme “Promoting Sustainable
PPRA
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Socio-economic Development through Public Procurement” held at Jomo Kenyatta International Convention Center (KICC), Nairobi Kenya.
4.6.4 Procurement Plans aligned with MDAs, LGAs and Parastatals Institutional Strategic Plans by June 2015
Achieved It has been mandatory that Public Procurement Plan to be part of the strategic plan and budget in the new PPA 2011.
PPRA
4.6.5 Value for money procurement enhanced by Framework contracts for common use items and services by June 2017
On track A survey to update database on unit costs for common activities in construction works has been done in 7 regions.
PPRA
4.6.6 PPRA operational and outreach capacity strengthened by June 2015
On track 173 Publications procured for the Library and Documentation centre
PPRA
152 editions of Tanzania Procurement Journal prepared, printed and circulated namely TPJ Vol. VII no. 26 -52 and Vol. VIII no. 1 -25
3 PPRA staff attended short course training on Revenue Forecasting.
Furniture for Zonal Offices procured
4.6.7 All (493) PEs will have a fully functional PMIS as a reporting tool for procuring entities to report back to PPRA by Nov 2015
On track 475 officers from 315 PEs trained on PMIS. Moreover, the number of PEs connected to use the system is 383 out of 474.
PPRA
4.6.8 e-procurement will start functioning as pilot stage by Nov. 2016
On track 1) A study visit for 9 staff to Korea is scheduled to take place from 20th to 30th July 2015 for participating entities that will be involved in the e-procurement pilot stage namely PPRA, GPSA and MSD.
PPRA
2) An approach was changed to take advantage of funding from World Bank (RCIP project) for the tender that was initially advertised by POPSM for MSD only and later changed to a unified national e-procurement system in accordance with requirement of laws. Feasibility study was conducted and implementation plan as well as bidding document prepared.
3) PPRA in collaboration with e-GA enhanced PEs awareness on e-procurement during annual procurement governance workshop
4) 433 procurement students sensitized through seminars on e-procurement issues under PPA 2011.
Output 4.7. HCMIS entrenched in service delivery points in selected sectors and its sustainability attained
4.7.1 User requirements, gap analysis and infrastructure Achieved The user requirements were identified and gaps analysis was PO-PSM
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CODE: MILE STONE DESCRIPTIONS STATUS COMMENTS ON THE STATUS RESPONSIBLE COMPONENT
requirements identified for 160 SDP undertaken by October 2014
conducted by visiting SDPs, reports were prepared; infrastructure requirements for 40 LGAs identified, contract signed and payments has been made; it is awaited for suppliers to deliver the infrastructures.
4.7.2 Installation of HCMIS at 160 SDP by June 2016 On track The installation of HCMIS to SDP is in progress, the delay of getting funds on time has resulted to a slow implementation.
PO-PSM
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
Achieved with delay
Using the draft report from the consultant, it was decided to continue the work in-house using a taskforce (drawn from PMORALG, BoT, MoF, NBS, and PO-PSM) led by FISM. To complete the report.
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
Achieved with delay
Stakeholders meeting was conducted to discuss issues arising from mapping exercise and a draft action plan was prepared.
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
Achieved with delay
The drafted action plan was prepared with the estimated cost to implement the recommendations on matters arising from mapping exercise, training on how to undertake a review on GoT infrastructure was conducted. A Project paper to undertake the milestone needs to be prepared and shared by October 2014.
FISM
5.1.4 Integration/Interfacing plan is engaged and series of planned actions are being executed and completed by October, 2015
Delayed GoT Electronic Financial Management Systems infrastructure has been reviewed, a requirement specifications document for proposed infrastructure was developed which will be used as a guide for designing integration architecture and the security requirements specifications for implementation in the integration of EFMS were developed.
FISM
5.1.5 IFMS infrastructure installed to new 35 LGAs, RSs and PMORALG institutions and connected to central server at Dodoma and MoF by Dec 2014
Delayed Contract with a consultant to install IFMS infrastructure to new 35 LGAs has been signed, delivery of procured hardware is in progress. Funds to carry on the task are committed and will be paid upon completion of delivery. Follow up to sample New LGAs to survey for IFMIS installation conducted.
PMO-RALG
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 2014.
Delayed Meeting between PMO-RALG and Ministry of Finance to discuss type of Data to be shared conducted. The contract for designing the solution for Data exchange interface between MoF IFMS-Epicor and PMO-RALG IFMS -Epicor have been signed. Funds to undertake the assignment is committed and will be paid upon completion of the service.
FISM/PMO-RALG
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CODE: MILE STONE DESCRIPTIONS STATUS COMMENTS ON THE STATUS RESPONSIBLE COMPONENT
5.1.7 Completed capacity building to key users of IFMS from all LGAs, RS and PMORALG institutions by June 2013.
Achieved 1) One CSA from new RS/LGAs has been trained in support, installation, planning and reporting database
PMO-RALG
2) Five accountants from new RS/LGAs have been trained on financial management information system
3) One District Treasurer has been trained on financial management information system
5.1.8 Audit of IFMIs in LGAs conducted by June 2015 Achieved An assessment to 133 LGAs on the effectiveness of the operation of IFMS-Epicor 9.05 & Six bank accounts at LGAs by PMO-RALG, MOF & RSs staff was conducted.
PMO-RALG
Output 5.2: Utilization of EPICOR modules increased from seven to ten
5.2.1 EPICOR system upgrade complete by December 2014 Achieved EPICOR system has been upgraded from version 7.3.5 to version 9.05 with 10 modules installed of which 6 have been activated. Inventory (asset) model on the way to be updated.
ACGEN
5.2.2 ACGEN Staff capacity enhanced by Dec.2014 On track 18 staffs were trained on Certificate course in Web Development at NIIT Ltd New Delhi India and South Africa.
ACGEN
5.2.3 Training for IFMS end users on the upgraded modules conducted by Dec 2014
Achieved 531 end users staffs were trained on the new version of EPICOR.
ACGEN
Output 5.3: All software development and module upgrades are coordinated with the overarching plans for ICT integration
5.3.1 FISM is operationalized and controls are put in place to manage software acquisition and development by June 2015
Delayed A sensitization workshop on developing a control strategy for managing Electronic Financial Management Systems was conducted.
FISM
5.3.2 FISM staff capacity enhanced by June, 2015. On track 19 FISM and other GoT staffs have been trained on Data Centre installation course, Database Management Systems, System Integration, IT Management and Data Centre infrastructure set up.
FISM
Output 5.4: Improved communication and public access to key fiscal information to stakeholders by 2016.
5.4.1 Support the Budget Division to publish the relevant documents and fiscal information
On track The relevant documents and fiscal information published on website.
GCU
5.4.2 MoF Communication Strategy developed and implemented by June 2013
Achieved with delay
MoF communication strategy developed and proposed action plan for communication strategy completed.
GCU
5.4.5 Fiscal Information and Budget Transparency Publication Cycle developed and implemented by June 2014
Delayed GCU
5.4.6 Develop an action plan to modernize MoF website (structure, content and user friendliness) by June 2015
Achieved Action plan for modernizing MoF website structure, layout and contents developed.
GCU
Output 5.5: Coordination and Standardization of PFM Training Achieved
5.5.1 Training mapping exercise completed by Dec 2012 Achieved The training mapping exercise is completed and the final report is in place.
DAHRM
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CODE: MILE STONE DESCRIPTIONS STATUS COMMENTS ON THE STATUS RESPONSIBLE COMPONENT
5.5.2 Capacity building Plan developed and shared with key Stakeholders by February 2014.
Pending It is waiting the implementation of milestone 5.5.3 DAHRM
5.5.3 An impact assessment of PFM training is conducted to measure staff performance following various trainings by June 2015
Delayed The Consultant to undertake the assignment has been identified. The assignment will be completed in FY 2015/16 Meanwhile, a draft PFM M & E training framework developed and shared to stakeholders for comments.
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 annually
Achieved PFMRP Annual Work plan and budget for FY 2015/16 was prepared and approved by JSC for implementation.
PD
Output 5.7: PFM activities are effectively planned and implemented
5.7.1 Training on Change Management and Strategic Planning completed by December 2014
Achieved Eighty (80) staffs were trained on Change Management and Strategic Planning at ESAMI Arusha.
PD
5.7.2 Results Based Management training has been delivered to 60 PFMRP Component managers by June 30, 2014.
Delayed 32 PFMRP component staffs were trained on results based management at ESAMI Uganda.
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 Achieved with Delay
The secretariat has all needed staff for programme support. PD
5.8.2 Secretariat work plan is completed annually alongside the PFMRP annual work plan
On track The Secretariat work plan for FY 2014/15 was prepared and coordinated its implementation. The work plan for FY 2015/16 will be completed when the components work plan are approved by JSC.
PD
5.8.3 PFMRP Co-ordination secretariat facilitated annually. On track The PFMRP Secretariat was facilitated through provision of office equipment and consumables. Acquisition of a motor vehicle is underway; it will be delivered in FY 2015/16.
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
Achieved M&E framework has been reviewed and a Program Result Framework developed.
PD
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 June 2014 IAG action plan, ACGEN’s Plan to transition to Accrual Accounting
Achieved ICT study completed. The TWGs agreed to hold awareness/information sessions on various PFM themes (migration to IPSAS accrual and creation of DMO). The information sessions were not performed as planned.
PD, IAG, ACGEN
5.10.2 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 distributed during Nanenane exhibitions CGCU
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CODE: MILE STONE DESCRIPTIONS STATUS COMMENTS ON THE STATUS RESPONSIBLE COMPONENT
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
Achieved The annual report FY 2013/14 and Semi Annual report for FY 2014/15 for PFMRP were prepared and approved by JSC
PD
5.11.2 Annual supervision mission are conducted by Sept 30 of each year commencing 2012.
On track The 2014 Joint Supervision Mission was carried out successfully, report prepared and the program rated as Satisfactory.
PD
5.11.3 Independent program evaluations are completed towards end in 2014/15
Delayed A consultant for undertaking programme’s mid-term review was engaged. Final report expected in Sept. 2015.
PD
5.11.4 Dialogue structures are working as evidenced by combined DP/GoT surveys/independent evaluation to ensure effective program implementation
On track Dialogues under JSC, PMC and TWG platforms were done as evidenced by JSM report, mid-year reports, meeting minutes. The dialogues have enhanced transparency, coordination and had provided solutions on the encountered challenges.
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 The ToR was completed and the consultant procured. PD
5.12.2 Mapping commences September, 2012 Achieved The inception report for Mapping exercise was submitted on February, 2013. The consultant is the field collecting data
PD
5.12.5 Reports for implementation of IGFT action plan to be produced annually by end September
On track The implementation of the IGFT study action plan started, reports will be produced.
PD
Output 5.13: Strengthened Public Financial Management Reforms in Zanzibar by 2017
5.13.1 Support to jointly (DPs, ZNZ and MoF) agreed Strategic plan on PFM reform in Zanzibar) – this milestone to be reviewed
On track The action plan developed and agreed was implemented as follows:
ZANZIBAR
2 Public Debt staff trained on Data Analysis and key issues on Debt Sustainability management
81 members of HoR, 160 Accounting Officers, 44 Directors of Planning, 160 Accountants and auditors and 10 Ministerial PBB core team have been trained on PBB and a study tour to learn on PBB was done by three (3) staff
85 auditors from CAG office were trained on the application of International Financial Reporting Systems (IFRS)
5 auditors attended a training on computerized audit in Rwanda
ToR for procuring a consultant to review public investment Act has been prepared, passed by Ministry’s Tender Board and submitted to the PFMRP Secretariat for further actions.
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KRA 6: LGA REFORM PROGRAMME
CODE: MILE STONE DESCRIPTIONS STATUS COMMENTS ON THE STATUS RESPONSIBLE REGION
Output Code and Description: 6.1: Resource Allocation, Planning and Budgeting improved by June 2017
6.1.2 Monitoring of resource flow from LGAs to LLGs
On track PFM Champion conducted assessment of resources flow from LGAs to LLG in all 6 LGAs for the first to third quarter, the fourth quarter the activity is on- going and expected to be completed by 10 July, 2015.
Geita
On track Resource flow monitoring from LGAs to LLG done in 7 LGAs in Kigoma Region
Kigoma
On track Followed- up details of transfers to LLGs in all 6 LGAs and, in consultation with TA, reviewed procedures at a workshop. However, a common template for this is awaited from PMO-RALG.
Njombe
Delayed The resource flow template being developed by PMO-RALG; LGAs have been introduced to concept and requirements so as to launch implementation as soon as template is approved.
Ruvuma
On track Developed pilot resource flow monitoring tool from LGAs to LLGs. Assessment and monitoring undertaken in 4 LGAs and selected LLGs
Rukwa
On track Developed pilot resource flow monitoring tool from LGAs to LLGs. Assessment and monitoring undertaken in 4 LGAs and selected LLGs
Katavi
On track Monitoring of resource flows from 8 LGAs to LLGs were done up to third quarter, various sources of funding were assessed.
Mara
Achieved Resource flow monitoring from LGA’s to LLG’s done in 6 LGA`s on quarterly basis.
Simiyu
On track Follow-up and supervision mission on resource flow from LGAs to LLG in all 7 LGAs to LLGs has been done by RS PFM team. The RS PFM team visited 5-7 wards/village from each LGA during the supervision mission. The team used a pilot tool developed by the RS PFM Team under the guidance and support from the TA.
Mtwara
On track Financial benchmarking template have used as a monitoring to track resource flow from LGAs to LLGs.
Dodoma
6.1.3 All LGAs updates their strategic plans and align their budget with updated strategic plans for 2015/16
Achieved GPFM Champion Conducted assessment on link between 6 LGAs strategic plans and their 2015/16 budget where recommendations for improvement were provided. The recommendations reflected in 6 LGAs 2015/16 budgets.
Geita
On track Strategic Plan for 4 LGAs in Kigoma reviewed by PFM Champions, weaknesses identified for improvement. 3 LGAs (new ones) don’t
Kigoma
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CODE: MILE STONE DESCRIPTIONS STATUS COMMENTS ON THE STATUS RESPONSIBLE REGION
have SP but they considered it in their next year budget
On track Provided intensive training for 6 LGAs on how to update their plans and SP. Newly established Councils are yet to develop SP.
Njombe
Achieved All LGAs were successfully assisted in the preparation of plan and budget for the F/Y 2015/2016 according to their strategic plans.
Ruvuma
On track Reviewed Strategic Plan, CDR and CFR of 4 LGAs and identified areas to focus. Trained 32 staff from 4 LGAs including DTs, Accountants and Planning Officers. Reviewed Councils revenue enhancement plan, for 3rd and 4th Quarter. Nkasi DC and Sumbawanga MC started updating their plans
Rukwa
On track 40 staff in 4 LGAs (10 HoDs from each LGA) were trained in CDR, CFR and supported in preparation of budgets 2015/2016. Training on strategic plan for 4LGAs is planned on 8 – 12 July 2015 and funds are committed for the activity.
Katavi
Achieved Strategic Plan for 8 LGAs reviewed by PFM Champions, weaknesses identified for improvement. 8 LGAs were also supported in the preparation of plans and budget for FY 2015/2016. The activity was done on 03 – 06/02/2015
Mara
Achieved 4 LGAs in Simiyu region have updated Strategic Plans (SP) with the assistance of PFM Champions.
Simiyu
On track 7 LGAs were trained and instructed on updating their SP during SP review training. Masasi DC managed to develop a new council SP. The remaining 6LGAs updated their existing SP.
Mtwara
On track One LGA (Chemba) has set aside budget to prepare SP in 2015/2016 budget. Two LGAs (Bahi and Kongwa) have set aside budget to update their SPs. Four LGAs (Kondoa, Dodoma, Mpwapwa and Chamwino) have SPs ending in 2015/2016 financial year.
Dodoma
6.1.4 Taxpayer database rolled-out across selected LGAs On track PFM Champion conducted assessment on preparation of using electronic system in revenue collections in 6LGAs. Geita Town Council used MRECOM to collect property tax others Councils use direct banking for some sources of revenue. This activity will be completed after ongoing I –tax training by PMO RALGPFM Champion conducted assessment on preparation of using electronic system in revenue collections in 6LGAs. Geita Town Council used MRECOM to collect property tax others Councils use direct banking for some sources of revenue. This activity will be completed after ongoing I –tax training by PMO RALG
Geita
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CODE: MILE STONE DESCRIPTIONS STATUS COMMENTS ON THE STATUS RESPONSIBLE REGION
On track Kigoma Ujiji already started using LGRCIS. The rest LGAs will commence it on 1st July 2015.
Kigoma
Delayed The activity will be implemented after i-Tax training being organized by PMO RALG
Njombe
Delayed Waiting for a training by PMO-RALG Ruvuma
On track The RS FMO and ICT, and 2 LGAs core staff (Nkasi DC and Sumbawanga DC) DT, Cashier and Revenue Accountant attended I-Tax training 19-26 June 2015. The rollout of I-Tax system in 2 Councils is contingent upon installation and configuration of I-Tax system.
Rukwa
Pending The RS FMO and ICT, and 2 LGAs core staff (Mpanda and Mlele) DT, Cashier and RA were trained in I-Tax system training conducted on 19-26 June 2015. The training is a key milestone for rollout of I-Tax system in the 2 earmarked LGAs, dependent on installation of I-Tax systems. Training is planned to be conducted in July, 2015 and funds are committed for this activity.
Katavi
Pending The activity will be done after completion of central training on i-Tax organized by PMO-RALG. Therefore the funds have been committed. The activity will be done on early July, 2015
Mara
Delayed Rollout will commence after training of LGA’s staff in I-TAX database.
Simiyu
On track 21 Revenue Accountant from 7 LGAs were trained on using i-Tax system Version 1.6. Also IT staffs from RS and 2 LGA, 2 Treasurers, 2 Cashiers, 2 Revenue Accountant and 2 Accountant attended i-Tax Training organized by PMORALG.
Mtwara
On track PFM Champions and PFM Teams have been equipped with I-Tax knowledge necessary to roll-out taxpayers database.
Dodoma
Timely and complete disbursement of development funds
On track 134 participants from Regional Secretariats and selected 12 LGAs were trained on planning and budgeting for 3 days in Morogoro and a consultant was engaged to develop an electronic system which will be used to transfer information on funds released for respective LGAs.
CB
Output Code and Description: 6.2: Improved Budget execution and financial reporting by LGA by June 2017
6.2.1 Create a cadre of Regional PFM Champions Achieved An intensive training to 100 PFM champions at RS provided on general and specialized PFM thematic areas done. Existing training materials for PFM team reviewed and training modules for PFM champions to be used by other decision makers at RS and LGAs
PMORALG
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CODE: MILE STONE DESCRIPTIONS STATUS COMMENTS ON THE STATUS RESPONSIBLE REGION
developed.
6.2.2 Improve PFM practices in LGAs – including bank reconciliation, imprest retirement, compliance with procurement norms, financial benchmarking
Achieved PFM champions managed to perform Financial Management Benchmark in Bukombe, Chato, Geita, Nyang`hwale and Mbogwe Districts Councils and Geita Town Council. Recommendations were provided in all areas that need improvement including bank reconciliation and clearance of outstanding items, imprest management, updating of fixed assets register and assets valuations.
Geita
On track Regional PFM Champions undertook financial management benchmarking in 7 LGAs in KIGOMA as planned
Kigoma
On track Regional PFM champions undertook quarterly financial management benchmarking reviews in all 6 LGAs, noting areas to be followed up closely in future reviews.
Njombe
On track PFM Champion conducted assessment on preparation of using electronic system in revenue collections in 6LGAs. Geita Town Council used MRECOM to collect property tax others Councils use direct banking for some sources of revenue. This activity will be completed after ongoing I –tax training by PMO RALGPFM Champion conducted assessment on preparation of using electronic system in revenue collections in 6LGAs. Geita Town Council used MRECOM to collect property tax others Councils use direct banking for some sources of revenue. This activity will be completed after ongoing I –tax training by PMO RALG
Ruvuma
On track Pilot financial benchmarking tool circulated and assessment conducted to 4LGAs
Rukwa
Assessment results revealed areas to focus including late retirement of imprest, late bank reconciliations, stores not taken to ledgers charged.
Councils instructed to rectify issues.
On track Financial benchmarking assessment was conducted in 4 LGAs using a pilot tool developed financial benchmarking checklist.
Katavi
Assessment on record keeping in accounting and procurement was conducted in 4LGAs using developed checklists tools on 22nd to 25th June, 2015.
Councils were directed to regularize late imprest retirement, late bank reconciliation and ensure proper record keeping.
On track Regional PFM Champions undertake quarter 1, 2 and 3 financial Mara
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CODE: MILE STONE DESCRIPTIONS STATUS COMMENTS ON THE STATUS RESPONSIBLE REGION
management benchmarking in 8 LGAs as planned, whereby areas of weaknesses were advised accordingly to management teams and remarkable areas with good performance were shared between Councils as best practice for improvement. We have experienced much improvement from our LGAs.
Achieved Regional PFM Champions conducted financial benchmarking in 6 LGA’s on quarterly basis.
Simiyu
On track With the support from the TA, RS PFM Champion managed to conduct quarterly Financial benchmarking in all 7 LGA using the Pilot Tool.
Mtwara
Achieved PFM Practices have been improved as:- Dodoma
: Imprest is timely retired.
: Bank reconciliation is timely done.
: Procurement norms and financial benchmarking are adhered to by all LGAs.
6.2.3 Utilization of financial reports from IFMIS by LGAs improved
Achieved PFM Champions conducted training and assessment on preparation of financial reports from IFMS in 3 LGAs. The remaining three councils are operating without IFMS whereby operation of six accounts was assessed. Monitoring of preparation of finance reports from IFMS in 3 LGAs was done.
Geita
On track On Job Training to LGAs staff on IFMIS financial reports was conducted in the 4th quarter
Kigoma
On track All 6 LGAs were trained on utilization of financial reports from IFMS but 2 newly LGAs (Wanging’ombe DC and Makambako TC) are yet to initiate the process of installing IFMS -Epicor.
Njombe
On track Staff in 6 LGAs trained on utilization of financial reports from IFMS. However, one LGA i.e. Nyasa District Council is not connected to IFMS database.
Ruvuma
On track Trained 32 staff in 4 Councils including DTs, Accountants, and Planning Officers on utilization of financial reports from IFMIS.
Rukwa
Except for Kalambo DC, monitoring and assessment was undertaken in 3 Councils with installed IFMIS.
On track 40 staff in 4 LGAs (10 HoDs from each LGA were trained on IFMIS - Mpanda TC and Mpanda DC on 26-27 February 2015, Nsimbo and Mlele DC on 25-26 May 2015.
Katavi
Except for Mlele and Nsimbo, monitoring of utilization of IFMIS reports was conducted in 2 LGAs Mpanda DC and Mpanda TC.
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CODE: MILE STONE DESCRIPTIONS STATUS COMMENTS ON THE STATUS RESPONSIBLE REGION
Achieved 2 Accountants each from 8 LGAs (16 Accountants from LGAs) were trained on utilization of financial reports from IFMS. The activity was done on 15 – 16/11/2014. Now LGAs are using generated reports from IFMS which seems to be useful for decision making.
Mara
Achieved 12 Accounts staff from 6 LGAs trained on utilization of financial reports from IFMIS for 2 days after identification of training gaps.
Simiyu
On track 22 LGA Internal Auditor and 14 Accountants were trained on How to generate CFR, Monthly Revenue and Expenditure Report from Epicor 9.05.
Mtwara
Achieved All 7 LGAs prepare financial reports and expenditures from IFMS (Epic or 9.0 & CFR).
Dodoma
All LGAs maintained electronic books of account like General Ledger, Vote books and Cash Registers.
6.2.4 All LGAs submit appropriate annual financial reports for CAG audit
On track PFM Champions managed to conduct training on preparation of CFR and CDR to a total of 103 Heads of Departments/Units from 6LGAs.Training on Preparation of financial statements which comply with IPSAS accrual basis is rescheduled due to ongoing i tax training, Therefore the activity expected to be completed on 10 July, 2015.
Geita
Achieved 7 LGAs submitted appropriate Annual Financial Reports for CAG audit
Kigoma
On track Council Treasurers and one Accountant in each of 6 LGAs trained on preparation of appropriate financial reports by CAG staff. A review of audit reports and management letters indicates progress is happening, but more sustained efforts required.
Njombe
On track All LGAs were capacitated on the appropriate submission of annual financial reports to CAG. All LGAs submitted their financial reports timely during the financial year 2014/2015. However, in some cases submitted FS had to be resubmitted after correcting material errors.
Ruvuma
On track Reviewed quality of 4 LGAs CDR, CFR and CAG audit queries on Council AFS and identified areas to focus.
Rukwa
Trained 32 staff in 4 Councils including DTs, Accountants, and Planning Officers on CDR / CFR.
Councils directed to focus on quality of financial reports.
On track Reviewed 4 LGAs CDR, CFR and CAG audit queries on LGAs and directed Councils to focus on quality of financial reports.
Katavi
40 staffs in 4 LGAs (DT/CT, DA, DE, DPLO and other HoDs from
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CODE: MILE STONE DESCRIPTIONS STATUS COMMENTS ON THE STATUS RESPONSIBLE REGION
each LGA) were trained on CDR and CFR - Mpanda TC and Mpanda DC on 26-27 February 2015, Nsimbo and Mlele DC on 25-26 May 2015.
Achieved Council Treasurers, Planning Officer and one Accountant in 8 LGAs were trained on preparation of CFR and CDR and its applications. The emphasis was put on challenges facing on production of the reports, various utilization of reports and matching of reports especially on financial matters. The activity was done on 12 – 13/11/2014. Submitted reports have a lot of improvement than before.
Mara
Achieved All 6 LGAs submitted appropriate annual financial reports for CAG Audit.
Simiyu
On going Accountant from 7 LGAs were trained on preparing Annual Financial Report basing on IPSAS Accrual Based for closing FY 2014/2015.
Mtwara
Achieved CFR are submitted to PMO-RALG via RS quarterly which constitute annual financial reports.
Dodoma
LGAs submit appropriate annual financial reports to CAG Office.
Output Code and Description:6.3: Improved Oversight and Financial Accountability in LGA by June 2017
6.3.1 Implementation of internal and external audit recommendations by LGAs improved
Achieved Follow up on implementation of CAG Audit reports for 2012/13 in 4 LGAs conducted. The remaining two Councils are newly established Councils with no CAG reports for the F/Y ended June 2013.
Geita
On track Assessment on implementation of CAG recommendations done in 4 LGAs. Also implementation of internal Auditor recommendations was assessed in 7 LGAs. , CAG Audit reports for 4 LGAs were scrutinized and analyzed
Kigoma
On track Assessment on implementation of CAG recommendations done in 6 LGAs. Also implementation of internal auditor recommendations was assessed in 6 LGAs. CAG audit reports for 6 LGAs were scrutinized and analyzed. Hence some previous issues were acted upon. However, closer monitoring and backstopping by RS is recommended.
Njombe
On track There has been a good improvement and success in the implementation of internal and external audit recommendations. The number of audit queries has been reduced greatly. Improvements required in timeliness of implementing recommendations
Ruvuma
On track Developed an audit query tool for tracking and monitoring Rukwa
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CODE: MILE STONE DESCRIPTIONS STATUS COMMENTS ON THE STATUS RESPONSIBLE REGION
implementation status of CAG and internal auditor recommendations.
Assessment of implementation status of internal and external auditor conducted in 4 Councils.
Directed 4 Councils to expedite implementation of pending audit recommendations.
On track Reviewed 4 Councils CAG and internal auditor recommendations and implementation plan.
Katavi
Assessment of implementation status of auditor’s recommendations was conducted in 4 LGAs and the Councils were directed to close all pending audit issues.
Oriented LGAs internal auditors on IAG guide for improved quality of audit work
On track Assessment on implementation of internal auditor recommendations done in 8 LGAs. Audit reports were scrutinized and analyzed for all LGAs; either LGAs management teams were advised concerning remedy actions to clear and close audit issues. Number of raised audit queries are not much now but also LGAs management teams responds to audit reports within specified period.
Mara
On track Internal and External Audit recommendations partially implemented since some of the recommendations need time to be addressed.
Simiyu
On track -27 LGA Internal Auditors were trained on analyzing audit report and complying with approved format by AIG. The RS PFM Champion with the support from the TA made follow-up on the implementation of audit recommendations.
Mtwara
Achieved Internal Audit reports are submitted quarterly to RC’s Office for further action
Dodoma
Internal Audit recommendations are submitted and discussed by Finance and Planning Committee monthly.
Internal Audit reports are reviewed by PFM-Champions quarterly.
6.3.2 Improved accountability measures implemented by LGAs (Fraud Prevention Action Plan)
Achieved Regional PFM Champions conduct fraud awareness training to 110 Heads of departments/Units from 6 Council of the Region. The training covered perception about fraud, fraud indicators and system of internal control.
Geita
On track Orientation to Council Directors and Head of Sections of RS – Kigoma conducted and activities for implementation of fraud prevention plan considered in their budget 2015/16
Kigoma
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CODE: MILE STONE DESCRIPTIONS STATUS COMMENTS ON THE STATUS RESPONSIBLE REGION
On track A training workshop was organized for all 6 LGAs (and some RS staff) on frauds prevention plans and monitoring of its implementation. PCCB provided resource persons for the training. Each LGA is required to prepare/ finalize action plans for implementation.
Njombe
Achieved In collaboration with Prevention and Combat of Corruption Bureau (PCCB), awareness raising workshop was conducted to various staff to all LGAs.
Ruvuma
On track Reviewed Fraud Prevention Plan in all 4 LGA, identified areas to improve.
Rukwa
Training on fraud prevention plan is planned in early July 2015 and funds are committed for the activity.
On track Orientation on fraud prevention action plan and monitoring framework is planned on 2-3 July 2015. and funds are committed for the activity
Katavi
On track Orientation on fraud prevention plans and monitoring of its implementation together with how to develop and implement council risk management framework was done to Risk Coordinators and Internal Auditors for all 8 LGAs. The activity was done on 27 – 28/03/2015 and LGAs should have Risk Management Framework in place for implementation on 1st July, 2015.
Mara
Monitoring of implementation of standard financial disclosure norms was done in all 8 LGAs; various issues were examined during the exercise such as sharing of income and expenditure reports in village assemblies, publication of CAG and other financial reports on public. The team observed there is a tremendous improvement
Achieved Training on frauds prevention plan to 30 LGAs staff conducted and monitored.
Simiyu
All 6 LGAs are in different stages of preparing of Council fraud prevention plans.
On track 84 LGAs Staff from Financial Department, Internal Audit, PMU and Planning and Coordination were Trained on frauds Prevention, Financial Risk Management, Public Expenditure Financial Accountability, adherence to Public Procurement Act and Contract Management In their working area.
Mtwara
Achieved Fraud prone areas has been identified Dodoma Fraud sensitization meeting was held Fraud prevention plan has been prepared
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CODE: MILE STONE DESCRIPTIONS STATUS COMMENTS ON THE STATUS RESPONSIBLE REGION
6.3.3 Financial Transparency in LGAs improved On track Assessment on transparency in Procurement process was done in 6LGAs. Financial transparency is ongoing activities in all 6 LGAs, Monitoring of implementation of standard financial disclosure norms by 6LGAs conducted as planned.
RSs
6.3.4 Local PEFA Assessment undertaken Achieved A consultant to undertake the LGA PEFA has been engaged; reports for the assignment have been prepared and shared for comments.
PMORALG
Quality of report and quarterly submission of Internal Audit report from LGAs by June 2016
On track 273 members of finance committees and 38 head of internal unit from Mtwara, Lindi, Dodoma, Morogoro, Coastal and Dar es Salaam regions have been trained on internal audit functions and financial procedures.
IAG
69 internal auditors from Lake Zone’s LGAs were trained on audit process and report writing.
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ANNEX B: PERFORMANCE ON BURNING ISSUES 2014-15
Burning Issue PFMRP IV related
output
Status of Progress by 30th June 2015
Justification/remark
KRA
2
1. Budget credibility
2. Continued need to limit and control the pace of accumulation of arrears, and also the need to clear existing stock of arrears.
3. Budget documentation, comprehensiveness and transparency could be improved to meet international standards
4. Quality of service delivery is not optimal without clear LGA budget allocation process
a) and b) Output 2.2 - Increased effective utilisation of planning and budgeting tools by 2016 (milestone 2.2.10)
c) Output 2.4 - Quality and comprehensiveness of budget documentation as well as public access to key fiscal information
d) Output 2.3 Strengthened capacity of LGAs for MTEF preparation by 2015
Partially Addressed. The new Budget Act will provide guidance in matters relating to Budget and instil budget discipline and credibility and put in place a legal framework that considers different aspects of the budget and the process as well as recognizing the legal roles and responsibility of different key stakeholders. It remains to be seen how the Budget Act works in practice. Partially Addressed. A strategy of clearance of arrear is in place. A circular has been issued to all government institution to take stock of all the arrears and how they will be cleared. Quarterly evaluation of arrears is being conducted by ACGEN office. A total of TZS 600 bn has been allocated in FY 2015/16 to clear verified arrears. However, continued cash constraints pose serious problems to clearance of arrears. Partially Addressed. Some progress is noted on this count. Apart from the budget books, citizens’ budget, details on parastatals revenue and expenditure were also published. However, detailed budgets of executive agencies could not be published together with the National budget FY 2015/16 due to ongoing harmonisation on fiscal years between the executive agencies and Government. For the first time, GoT has published the consolidated financial statement for FY 2013/14. Not Addressed. Report on revised LGA budget allocation formulae has been completed. However, GoT approval for revised formulae is pending and it was not applied for FY 15-16.
KRA
3
5. Unreported government operations and insufficient monitoring of contingent liabilities lead to fiscal risk
b) Output 3.3 Strengthened public debt management capacity by 2015 (Milestone 3.3.4)
Partially Addressed There is a delay in finalizing the amendment of Government Loans, Guarantees and Grants Act. However. Important steps towards the strengthening of public debt management capacity have been taken with the approval by the PO-PSM for the new Debt Management Office (DMO) and its staffing structure, the conduct of a Debt sustainability analysis (DSA), the completion and publication of the country’s medium-term debt strategy and finalization of the draft national debt policy.
69
KRA
4
6. Oversight of parastatals need to be strengthened
7. Inadequate follow-up and compliance by auditees on audit recommendations (internal & external)
a) Output 4.4 Improved performance of parastatals by June 2016 (milestone 4.4.4)
b) Output 4.1 Increased coverage and quality of internal audit functions by 2016 and 4.2 Strengthened external audit functions by 2016 (milestones 4.1.7, 4.1.8 & 4.2.9)
Partially Addressed. Statement of liabilities and statement of guarantees for parastatals were prepared by TR and shared with ACGEN, thereby enabling the preparation of consolidated financial statement on accrual basis. However, the proposed TR Act continues to be delayed and has not been enacted. Partially Addressed. NAOT has upgraded the TeamMate software for tracking implementation of audit recommendations. It has developed a database of all audit recommendations up until 2012-13. However, this database will need to be merged with the proposed TeamMate module and audit recommendations for FY 2013/14 also needs to be included.
KRA
5
8. Lack of integration/interface between key financial systems
9. The inter-governmental fiscal transfer process has several weaknesses
a) Output 5.1 Coordinate integration, interfacing and rationalisation of government financial systems
b) Output 5.12 National systems and processes for intergovernmental transfers to LGAs streamlined and rationalised
Not Addressed.
Although a detailed plan has been developed for integration of 7 key financial systems, activities were delayed in 2014-15 and are now expected to be undertaken in 2015-16.
Not Addressed.
Lack of transparency, untimely and lack of predictability in fund flows continue to plague the system.
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ANNEX C: BURNING ISSUES IDENTIFIED FOR 2015-16
Burning Issue PFMRP IV related
output Target for FY 2015-2016 Justification/remark
KRA
2
1. Budget credibility
2. Continued need to limit and control the pace of accumulation of arrears, and also the need to clear existing stock of arrears.
3. Budget documentation, comprehensiveness and transparency could be improved to meet international standards
4. Quality of service delivery is not optimal without clear LGA budget allocation process
a) and b) Output 2.2 - Increased effective utilisation of planning and budgeting tools by 2016
c) Output 2.4 - Quality and comprehensiveness of budget documentation as well as public access to key fiscal information
d) Output 2.3 Strengthened capacity of LGAs for MTEF preparation by 2015
New milestone: 2.2.10 amended to read "New Budget Law and Amended PFA presented to Cabinet by June 2015"
New milestone proposed: "A strategy for arrears management in in place before June 2015, including a budget provision for clearance of arrears"
New milestone: 2.2.4 to read "Full budget details regarding executive agencies will be made available for 2015-16 budget"
Milestone 2.3.4 and 2.3.5: "LGA Budget allocation formulae revised and applied for FY 15/16 budget"
These two issues are also impacted by other KRA including revenue mobilisation and budget execution.
This issue was earlier
under KRA3.
KRA
3
5. Unreported government operations and insufficient monitoring of contingent liabilities lead to fiscal risk
b) Output 3.3 Strengthened public debt management capacity by 2015
Need to speed up Milestone 3.3.4: "Revise the Government Loans, Guarantees and Grants Act, and submission to Parliament for approval before the June 2015"
Action is needed to centralize the operations of public debt management, to address the problem of public debt growth and to monitor and control the pace of growth of contingent liabilities from PA&OBs
KRA
4
6. Oversight of parastatals need to be strengthened
a) Output 4.4 Improved performance of parastatals by June 2016 (milestone 4.4.4)
Milestones 4.4.3 and 4.4.4: "The New Treasury Registrar Act needs to be enacted. M&E mechanism
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7. Inadequate follow-up and compliance by auditees on audit recommendations (internal & external)
b) Output 4.1 Increased coverage and quality of internal audit functions by 2016 and 4.2 Strengthened external audit functions by 2016 (milestones 4.1.7, 4.1.8 & 4.2.9)
for measuring Parastatals compliance needs to be developed"
Milestone 4.1.9: "IAGD to institutionalise quarterly internal audit reports from MDAs and LGAs that follow-up compliance on both internal and external audit recommendations"
Milestone 4.2.9 "NAO to set up a database for tracking CAG audit recommendations and outstanding audit matters"
KRA
5
8. Lack of integration/interface between key financial systems
9. The inter-governmental fiscal transfer process has several weaknesses
a) Output 5.1 Coordinate integration, interfacing and rationalisation of government financial systems
b) Output 5.12 National systems and processes for intergovernmental transfers to LGAs streamlined and rationalised
Milestones 5.1.3 and 5.1.4 clarified with the target for this year; "at least two projects aimed at integrating/interfacing key financial systems are approved and implemented under the leadership of FISM by June 2015"
Milestones 5.12.4 and 5.12.5, i.e. "The IGFT action plan is implemented timely, and in particular the budget allocation formula is revised"
The same issues are kept for next year as burning issues, requiring particular attention (see conclusion chapter)
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ANNEX D: TORS OF THE PFMRP JOINT SUPERVISION MISSION 2014
2015 JOINT SUPERVISION MISSION TERMS OF REFERNCE
1. Background
The Public Financial Management Reform Programme PFMRP Phase IV, (PFMRP IV) commenced on the 1st July 2012 and will run for five years up to FY 2016/17. The strategy strives at enhancing revenue mobilization, planning and budgeting, transparency, accountability, efficiency and effectiveness in the use of resources and implementation is through 6 Key Result Areas (KRAs) of the PFM system; 1) Revenue management, 2) Budget and Planning, 3) Budget execution, Transparency and Accountability, 4) Budget control and Oversight, 5) Change management, Programme monitoring and Communication and 6) Strengthening PFM in Local Government. Each year, GoT and DPs have agreed to jointly undertake a Supervision Mission to assess progress in PFM reforms against the objectives set out in the M&E framework. This supervision mission marks the 6th since 2010 when the review mechanism was embarked and the fourth since the commencement of PFMRP IV in July 2012. More specifically, the mission will take stock of progress since Sept 2014 and allow for necessary adjustments in setting targets for the coming year. But also it will review the progress in the implementation of KRA 6 which focuses on strengthening PFM in Local Governments.
Demonstrating sound progress on PFM reforms is a critical condition for DPs’ provision of General Budget Support (GBS) and other funding through GoT systems. PFM reform progress therefore forms a key part of the assessment within the GBS Performance Assessment Framework (PAF).
The 2014 Joint Supervision Mission (JSM) agreed upon a list high-impact/burning issues (drawn from the M&E framework), that were considered critical for reform implementation for FY 2014/15. It is expected that close monitoring and follow up of implementation of these issues is a priority and that the 2015 JSM will assess the progress towards these issues.
Further, following several diagnostic work under PFM (several studies and action plans produced in the last year) and the more recent CAG’s audit reports for FY2013/14, the 2015 Joint Supervision Mission provides the opportunity for GoT to practically outline remedial solutions for persistent issues that have been identified as critical for improved PFM at all levels (MDAs, PAOBs and Local Government). Discussions of CAG recommendations and the PMG response/follow-up plan will also be discussed during this mission.
2. Objectives and Scope of the Mission The 2015 PFMRP Joint Supervision mission has the following objectives, noting some overlap between them:
1) To assess and agree on the overall progress and results from the implementation of the high-impact/burning issues as agreed during the 2014 JSM. This will include a particular focus on progress since the last Supervision Mission in September 2014. This will also lead to the identification of high-impact/burning issues for the FY 2015-2016, which will be included in the conclusion chapter of the JSM Aide-Mémoire
Reference document: 2014 JSMAide Mémoire/report – Annex B pages 45
2) To assess and agree on progress in the implementation of the action plans of PFMRP IV during the last FY (2014/2015) against the agreed milestones in the M&E framework. The basis for this assessment will be the draft annual report FY 2014/15 ending June 2015.
Reference document: PFMRP IV –Annual Progress Report 2014-2015
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3) To assess and agree on the overall progress and results from the implementation PFMRP IV since the last supervision mission in Sept 2014. This will include a particular focus on updating the M&E framework since the last Supervision Mission in September 2014.).
Reference document: 2014 JSM Aide Mémoire/report Annex A – PFMRPIV M&E framework Sept 2014 update
4) To propose possible adjustments to the M&E framework
Reference document: PFMRP IV –M&E Framework, KRA 6)
5) To consider PFM issues in relation to the General Budget Support discussions
6) To identify issues, challenges and opportunities that needs to be considered or addressed in the future in order to enhance and improve the PFM outcomes under each KRA. This should result in a revised set of "high-impact/key burning issues" for the period FY 2015/2016 to be included in the Conclusion chapter of the JSM Aide Mémoire.
The 2015 JSM will provide recommendations for implementation of the roadmap from the independent mid-term review/evaluation of the PFMRPIV
7) To have a strategic `high-level’ discussion on key PFM issues identified in the technical working group discussions / mid-term review
3. Methodology The review will be carried out through technical working group discussions with Key Result Area (KRA) and Component Managers, beneficiaries (for example, PMORALG, POPSM, MDAs, LGAs and Zanzibar) and other key stakeholders (for example, BoT, TRA etc). There will also be a desk review of key documents.
The GoT will also have the opportunity to make more in-depth presentations of topics of importance for the PFMRP IV strategy under each KRA such as findings of a study/diagnostic work, presentation of an action plan, progress against an action plan, outline of a proposed legislation, etc. On-site visits or demonstration of equipment/facilities purchased under the programme could also be organised.
In due time before the mission, and during the mission as needed, GoT will provide the review team with all the supporting documents for review. Some key documents (such as annual report) should highlight both achievements made and challenges faced. The proposed schedule and detailed TWG schedule of meetings are annexed to this ToRs.
4. Duration and Phasing Following an inception/kick-start meeting in the last week of August 2014, the Mission will take place from the 1– 30 September 2015 and will aim to coordinate as best as possible with other review missions held at this time to ensure beneficial synergies and minimize transaction costs for both GoT and DPs.
A workshop/presentation of the initial mission outcome will be undertaken following the end of the TWGs at a wrap up meeting where the draft aide-memoire/report will be shared.
The Final aide-memoire/report will be completed and presented two weeks after the draft report in order to have sufficient time for the PMC and JSC meetings.
74
5. Review Teams The aggregated Review Team will be composed of representatives from GoT and DPs. It will be co-led by DSPFM MoF and DP Co-Chairs (DFID/Denmark) who will be responsible for providing guidance and overall dialogue. The aggregated Review Team will also be split into smaller sub-teams. Each sub-team will be assigned a joint GoT-DP lead as per the agreed division-of-labour for KRAs – see Annex B. These sub-team leads will be responsible for drafting the progress report for the KRA and providing comments to feed into the Final Report. The PFMRP GoT & DP secretariats will provide support in organisation of meetings, follow-up and reporting.
6. Reporting/Outputs As noted above, the aggregated Review Team will share its initial findings before the end of the Mission. A draft report/aide memoire (maximum 35 pages plus supporting annexes) that meets the objectives of the Mission will also be completed before the end of the Mission.
The final report/aide-memoire will be completed and approved in sufficient time for the follow up PMC and JSC meetings.
It is expected that the Supervision Mission delivers or confirms the following documents for approval at the subsequent PFMRP Joint Steering Committee:
1. Supervision Mission final report/aide-mémoire including conclusion on high impact-burning issues for the FY 2015/2016
2. PFMRP IV Annual Progress report for FY 2014/2015
7. Documents to be consulted/Information required (but not limited to) i. All PFMRP IV Core Documents including the Strategy, M&E Framework, Operations Manual and 5-Year
Work Plan and Budget, Annual procurement plans. ii. Draft PFMRP IV Annual report FY2014/15 iii. List of high-impact/burning issues for FY 2015/2016; iv. NAO audit reports FY2013/14 – (as posted on the NAO website); v. Summary of recommendations by the CAG for discussion during JSM; vi. PMG/Treasury consolidated action plan (response to audit queries); vii. PPRA Annual report FY2013/14; viii. GBS PAF and Progress Reports for 2014/15; ix. Joint Supervision Mission (JSM) Aide Mémoire/Report 2014; x. Internal audit report (sample); xi. Budget execution reports (detailed and summary); xii. Mid Term Evaluation Report. xiii. 2015 LGA PEFA Reports and its Action Plan xiv. KRA 6 Implementation Reports
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ANNEX E: MISSION PARTICIPATION FROM GOT
S/N Name Designation Institution
1 Dr Servacius B. Likwelile PST MOF
2 Dr Hassan Mwinyimvua DSPFM MOF
3 Alex Mpangala FMO EFD
4 Alex Mwakisu FMO EFD
5 Mukajungu Kamuzora Economist EFD
6 Ezra Msanya DGAM GAMD
7 Harrieth Chamuriho ADGAM/IC GAMD
8 Michael Luzigah SV I GAMD
9 Mohamed Mdoka SV II GAMD
10 Sixbert Qamdiye ADGAM/AC GAMD
11 Wenceslaus Sobayi SSV GAMD
12 Josephat S. Mwabega CEO GPSA
13 Malik Aram Manager Business GPSA
14 Alphonce Muro Auditor IAG
15 Joshua Kisanga System Developer MNRT
16 Kevin Mtei IT Officer MNRT
17 Martha Delphinus Accountant MNRT
18 Adam Mshangama Incharge SDU/Tec. MOF
19 Alex Haraba ACPPPD MOF
20 Alexander Lweikila CS- PFMRP MOF
21 Alfred Dede Assist HR Director MOF
22 Alfred Misana ACPAD MOF
23 Awezaye Nyambi SO MOF
24 Aziz H. Kifile AAG-FS MOF
25 B. Lyamuya Incharge Revenue MOF
26 Buji Emmanuel S/Economist MOF
27 David Dotto Incharge CMU MOF
28 Dr. Frederick Mwakibinga Commissioner – PPD MOF
29 E.L. Lovililo AAG-FMGT MOF
30 Elimu Sekeni CSA – FISM MOF
31 Elisaraweki Macha FMO – PD MOF
32 Emmanuel M. Tutuba Ag. CB MOF
33 Emmanuel Subbi AIAG MOF
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S/N Name Designation Institution
34 Eng. Sabato Tarimo P/Engeneer MOF
35 Eva Valarian IO MOF
36 Gillian Makule Accountant MOF
37 Grace Sheshui Assist HR Director MOF
38 Hamza Kombo SO MOF
39 Hamza N Rashid ADFISM (NFR0) MOF
40 Herrieth E. Chamuriho ADGAM/IC MOF
41 Hilda Segere SO MOF
42 Ingiahedi Muma CGCU MOF
43 Ishmael Kasemwa Ag. ACGEN MOF
44 Ishmael Kasemwa Ag. ACGEN MOF
45 Juma S. Maguru AD-M& E MOF
46 Linus Kakwesigabo Financial Expert-PFMRP MOF
47 Mariana Lamosai PCSA MOF
48 Melkiory Paschal Ag. CA/FMGT MOF
49 Mohamed Mtonga IAG MOF
50 Monica Moshi Senior ADM Officer MOF
51 Morice G.L Garigo PSV MOF
52 Mwajuma Mbogoyo CA/Vote 23 MOF
53 Onesmo Mbekenga Internal Auditor MOF
54 P. Mshangila DFISM MOF
55 Ramadhani Kissimba IO MOF
56 Richard Mkumbo DPD MOF
57 Sebastian Ndandala PC- PFMRP MOF
58 Semroki Musa Mwanyika AIAG-LG MOF
59 Shongolo Msangi Ag. CPAD MOF
60 Stanley Mlula PCSA MOF
61 Stanley N. Haule ADFISM/OP MOF
62 Stanslaus W. Mpembe AIAG-B&P MOF
63 Vick Jengo PFMO MOF
64 Vitus Paul AAG – LG MOF
65 Wilbroad Chimwaga PFMO MOF
66 William Mhoja P/Economist MOF
67 Williard Kalulu Ag.CA/Consolidation MOF
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S/N Name Designation Institution
68 Stephen Mahendeke Computer Analyst Bank of Tanzania
69 Kariba Busigara Computer Analyst Bank of Tanzania
70 Achiwa Seif Achiwa Budget Officer MOF - Zanzibar
71 Bihindi N. Khatib CEF MOF - Zanzibar
72 Emmanuel Mashimba CSU &PI MOF - Zanzibar
73 Faki M Faki MoF Zanzibar MOF - Zanzibar
74 Hamad B Said DPPR Dept MOF - Zanzibar
75 Juma A Hafidhi Deputy PS MOF - Zanzibar
76 Khatibu M. Khatibu MoF Zanzibar MOF - Zanzibar
77 Mwanaidi A Ahmad Budget Officer MOF - Zanzibar
78 Mwita M Mwita CB MOF - Zanzibar
79 Saumu Khatibu Haji MoF – Zanzibar MOF - Zanzibar
80 Seif S. Seif CSU &PI MOF - Zanzibar
81 Shekha J. Karama DPPR Dept MOF - Zanzibar
82 Simai A. Simai PFM Coordinator MOF - Zanzibar
83 Fatima M. Said Controller & Auditor General CAG - Zanzibar
84 Saleh H. Abar Auditor CAG - Zanzibar
85 Malima Nkilijiwando H/PU NAOT
86 Mligo Musa Accounting Officer NAOT
87 Denis Mihayo M&E Specialist PFMRP MOF
88 Archibold Kundasai CSA PMORALG
89 Ismail Y. Chami FMO PMORALG
90 Jeremia E. Mtawa Senior Accountant PMORALG
91 Johnson Nyingi PC-LGRP PMORALG
92 Joseph Zakaria Accountant PMORALG
93 K.L.Luanda DLG PMORALG
94 Lucas G. Mrema Accountant PMORALG
95 Mtani Yangwe PCSA PMORALG
96 Mustapha S. Yusuph Accountant PMORALG
97 Salum K. Nyoni Accountant PMORALG
98 Shomari O. Mukhandi ADLG PMORALG
99 Pendo Mangali Senior Finance Mgt Officer PMO-RALG
100 Angela Shayo Ag. Executive Secretary PO – PC
101 Anna Kimwela Economist PO – PC
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S/N Name Designation Institution
102 Nyangee Lugoe Economist PO – PC
103 Emmanuel Mlay DHCM PO – PSM
104 Jean Frida Mushumbusi Ag. AS. DIRECTOR PO – PSM
105 Leonard K. Mchau ADHCM PO – PSM
106 Leonard Tumua Budget Officer PO – PSM
107 Leopold Shayo AD-DICTS PO – PSM
108 Hamis Omari Tika Legal Officer PPAA
109 Ole-Mbille Kissioki Ag. Executive Secreatary PPAA
110 Toni S. Mbilinyi Legal Officer PPAA
111 Dr. Laurent M. Shirima CEO PPRA
112 Hannah Mwakalinga DCS PPRA
113 Adolpf Ndunguru MPF TRA
114 Gloria Ngoitiko S/Accountant TRA
115 I. K. Liguo Principal Economist TRO
116 Jones Mwalemba As. TR TRO
117 Joseph Ruta Head _ Legal Unit TRO
118 Mihalale, E.P Mwakibinga Acting TR TRO
119 Nicolaus Mhonnyiwa Head _ ICT Unit TRO
120 Patrick Gamara PFMO TRO
121 Philbert Lutale Ag. DAP TRO
122 Tatu Isike Senior HRO TRO
123 Thabit Dokodoko FMO TRO
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ANNEX F: MISSION PARTICIPANTS FROM DEVELOPMENT PARTNERS
S/N Name Organisation
1 Godfrey Kaijage AfDB
2 Jean Jose Padou CANADA
3 Louise Liberte CANADA
4 Mette Melson Denmark
5 Oscar Raphael Mkude Denmark
6 Marie Wolf Denmark
7 Vivek Misra DFID
8 Phillip Schattenmann GIZ
9 Achim Blume GIZ
10 Khasiani Kubai IMF East Afritac
11 Allen Killewo Irish Aid
12 Aran Corrigan Irish Aid
13 Joseph Nyamboha JICA
14 Yoshisuke Kondoh JICA
15 Svein Olav Svoldal Norway
16 Christian Shingiro UNDP
17 Denis Biseko WB
18 Victor Molel EU Delegation
19 Virginie De Ruyt EU-Delegation
21 Kati Manner Finland
22 Venla Voutilainen Finland
23 Frits Raijmakers BTC
24 Simon Moshy PFM DPG Coordinator
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ANNEX G: FINAL MEETING SCHEDULE FOR 2014 JOINT SUPERVISION MISSION
Time Issues For Discussion Meeting Location
GOT components
GoT Focal person
Review Team- DPs
Mon 24 Aug. 2015
12.00 Kick start meeting (chaired by PST): Presentation of overview of 2014 JSM mission
MoF All All All (see key for DP KRA teams
list).
Mon 07 Sept 2015
09.00 – 10.30
Oversight, registry and M&E of parastatals towards new TR act as well as capacity building
TR office TR, PAD – Debt Acting TR
CPAD
DP KRA 1,3 + 4 teams led by
Denmark,
JICA and CIDA
Tue 08 Sept 2015
09.00 – 11.00
PAF tax related indicator, Tax collection, revenue forecast, exemptions, Division of Labor between PAD and TRA, Budget transparency, Capacity building and support from other sources
Debt management (establishment of DMO and
capacity building, PDM legislation)
New Hazina Conference Room No. 1,
MoF
PAD, TRA
PAD
ACGEN
BoT
CPAD
Assistant Commissioner
PAD Debt; ACGEN;
BoT
DP KRA 1: Denmark, World Bank, JICA and Norway, DFID
DP KRA 3 team:
CIDA, EU, DFID and World Bank
11.30 – 13.00
Program based budgeting, Planning and budgeting tools including MTEF, budget legal framework, budget calendar, budget transparency
MoF Budget Division
PAD
CB
CPAD
DP KRA 2:
DFID, East
AFRITAC, IMF
Wed 09 Sept 2015
09.00 – 10.00
Asset management (valuation of govt assets, capacity building, policy development)
DGAM office
Sukari House
GAMD DGAM DP KRA 3 team
14.00 – 15.00
1Presentation on Progress of the Audit Database and Compliance to Audit Recommendations
NAOT Conference
Room
All All
Thur 10 Sept 2015
09.00 – 10.30
Capacity building, towards AFROSAI 4, extending the audit coverage incl. Follow up audits, database on
PSPF Golden Jubilee Tower
NAOT CAG DP KRA 4:
Ireland, DFID, Denmark,
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Time Issues For Discussion Meeting Location
GOT components
GoT Focal person
Review Team- DPs
outstanding matters, Citizen audit report
Building – Wing B, 14th Floor, Ohio
Street
JICA, Sweden and GIZ
11:00 – 13:30
Internal Audit capacity building and mandate, relations to other accountability institutions (NAO and PPRA), follow up of audit matters
PSPF Golden Jubilee Tower
Building – Wing B, 14th Floor, Ohio
Street
IAG
NAOT
IAGD Deputy CAG
DP KRA 4 team: JICA, Denmark, Ireland and DFID
Fri 11 Sept 2015
09.00 – 11.00
Public procurement capacity, reviewing M and E.
Procurement compliance, capacity building, e-procurement
Complaints monitoring framework
PPAA
Conference Room, Sukari House
PPD
PPRA
PPAA
GPSA
PPD
DP KRA 3 team:
CIDA, World Bank and AfDB
DP KRA 4:
JICA and AfDB
11.30 – 13:30
Flow of funds, IFMIS EPICOR (Capacity building and connectivity), Closing of accounts, Towards accrual accounting,
AccGen Conference
room
AcGEN,
PMORALG,
TRA,
BoT
AcGEN
DP KRA 3, 5 and 6.
Mon 14 Sept 2015
14.00 – 15.00
2Presentation on ”Implementation of the Budget Act”.
All All
Tue 15 Sept 2015
09.30 – 11.00
TISS, EFT, Connectivity, Closing bank account and reconciliation, Debt management, transfer of funds
BOT Meeting Room
BoT
ACGEN
ACGEN
BoT
DP KRA teams 3 and 5
Wed 16 Sep. 2015
Travel to LGAs and arrival in Dodoma
Thurs 17 Sep. 2015
09.00 – Program based budgeting, Planning and budgeting tools, LGA formula, Flow of funds, Closing of accounts, roll out of IFMIS/EPICOR and
DODOMA PMO-RALG
ACGEN
IAGD
Budget Division
PS – PMORALG
IAG
BC
DP KRA 1, 2, 5 and 6
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Time Issues For Discussion Meeting Location
GOT components
GoT Focal person
Review Team- DPs
connectivity, Work plan for KRA 6
Fri 18 Sep. 2015
09.30 – 12.30
PIM meeting RAS & LGA perspective
Dodoma
Region
RAS
LGAs
RAS DODOMA and DED, LGA
DP KRA 1, 2, 5 and 6
Mon 21 Sept 2015
09.00 – 10.00
Change and program management: link between PFMRPIV and other GoT initiatives (BRN, etc)
Planning Commission
meeting room
Planning Commission,
Planning Division
Executive Secretary
DP KRA 5: EU and DFID
10.30 – 12.00
Communication Strategy CGCU Office
CGCU CGCU DP KRA 5:
EU, KfW and DFID
Tues 22 Sep. 2015
11.00 – 12.00
Change management: Personnel management (distribution across country/formulas, payroll management), Incentives and payroll structure, capacity building (co-ordination/systematization of training)
POPSM meeting
room
POPSM POPSM DP KRA 4: World Bank and
DFID
Wed 23rd Sep. 2015
09.00 – 10.30
DCF and Aid Management Platform, DP funding on GoT system
EFD conference
room
EFD CEF DP KRA 1:
Denmark, UNDP
11:00– 12.00
Income generating Tax PFMRP Secretariat
Office
TRA Permanent Secretary
DP KRA 1:
Denmark and DFID
14.00 – 15.30
Public procurement capacity, reviewing M and E.
Procurement compliance, capacity building, e-procurement
Complaints monitoring framework
PPRA
Conference Room, 8th Floor, PPF
Tower
PPRA
PPRA
DP KRA 3 team:
CIDA, World Bank and AfDB
DP KRA 4:
JICA and AfDB
Wed 30th Sep. 2015
9.30 – 12.30
Zanzibar (PFM strategy) Zanzibar MoF
MoF ZNZ
Planning
PS
DPD
DP KRA 5:
EU, KfW and
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Time Issues For Discussion Meeting Location
GOT components
GoT Focal person
Review Team- DPs
Division DFID
Thur 1st Oct. 2015
09.00 – 10.30
Capacity building plan DAHRM office
MoF
DAHRM DAHRM DP KRA 5:
EU, KfW and DFID
11.00 – 12.30
ICT/IFMIS (ICT mapping action plan, capacity building)
FISM Office FISM DFISM DP KRA 5:
EU, KfW and DFID
14.00 -15:00
Change management and Cross Cutting Issues
DPD Office Planning Division
DPD DP KRA 5:
EU, KfWand DFID
Fri 13 Nov. 2015
By email
Submission of draft aide-memorie/draft report to MoF
Tue 01 Dec. 2015
TBC Wrap up meeting & JSC MoF
All All All
