“support to local government units for more effective & accountable public financial...

“Support to Local Government Units for More Effective & Accountable

Public Financial Management”DCI-ASIE/2010/022-691

PDF Working Group on Decentralization & Local Government June 25, 2012

Support to Local Government Units for More Effective & Accountable Public Financial Management

Overall Objective:To contribute to the achievement of the MDGs and poverty reduction in the Philippines, in line with the 2011-2016 Philippine Development Plan (PDP), through improved public financial management resulting in improved delivery of basic services by local governments.

Project Purpose:Enhanced capacity of local governments (LGUs) to generate revenue and to allocate and spend public funds more effectively and efficiently.

Support to Local Government Units for More Effective & Accountable Public Financial Management

Project Results

Support to Local Government Units for More Effective & Accountable Public Financial Management

Project Results & Components:A Enhanced capacity of national oversight agencies

I Improved institutional capacities of the oversight bodies at central levelII LGU PFM Policy agenda and action plan developedIII Strengthened capacity of the regional offices

Support to Local Government Units for More Effective & Accountable Public Financial Management

Project Results & Components:B Strengthened local capacity in fiscal and expenditure managementIV Improved revenue generation and management at LGU levelV Improved budget, planning and execution

VI Strengthened internal control systems / internal audit services at LGU levelVII Localized procurement reforms

Support to Local Government Units for More Effective & Accountable Public Financial Management

Project Results & Components:C Strengthened accountability and transparency

VIII Strengthened budget monitoring and evaluation at LGU levelIX Enhanced effectiveness of LGU performance monitoring systemsX Financial management leadership developed at LGU level

Support to Local Government Units for More Effective & Accountable Public Financial Management

Organizational Set-Up

Support to Local Government Units for More Effective & Accountable Public Financial Management

Working TogetherExecuting Authority

active role in reforming the budget process, particularly in the integration of planning and budgeting;

strengthening of LGU revenue generation;

Identification of further reforms in the LGUs through their audit findings and recommendations;

“Support to Local Government Units for More Effective & Accountable Public Financial

Management”

DCI-ASIE/2010/022-691

Inter-Agency MeetingDecember 8, 2011

Support to Local Government Units for More Effective & Accountable Public Financial Management

Project ImplementationPartially decentralized managementAll Contracts shall be concluded by the beneficiary, except for contracts relating to:

• Mobilization of technical assistance;• Monitoring;• External evaluation; and• AuditFollowing EC procurement procedures and subject to ex ante and ex post controls:ex ante controls: procurement contracts > 50,000 Euros & all grant contractsex post controls: procurement contracts < 50,000 Euros

Support to Local Government Units for More Effective & Accountable Public Financial Management

BudgetCategories EU contribution EUR Contracting authority / Paying authority

1. ServicesTechnical assistance 3 500 000 European CommissionMonitoring, evaluation and audit 200 000 European Commission

2. SuppliesEquipment 250 000 DBM / European Commission Software Development 300 000 DBM / European Commission Publications 250 000 DBM / European Commission

3. Operating costsEvents (training, mentoring, coordination) 3 000 000 DBM / European Commission

Office supplies 250 000 DBM / European Commission 4. IEC

Project Information, Education and Communication materials and mass media campaigns

100 000 DBM / European Commission

Communication/Visibility 50 000 European Commission

5. ContingenciesContingencies 100 000 DBM / European Commission

TOTAL 8 000 000

Support to Local Government Units for More Effective & Accountable Public Financial Management

BudgetGOP CONTRIBUTION:Estimated at 700,000 Euros, in kind and will cover:•Logistical costs for hosting TAT;•All tax expenditures incurred by the project;•All costs related to participation of officials in meetings, workshops and other events;•All salaries related to the participation of their staff in the programme;•Any program-related operating costs not included in the EU contribution;