REPORT

PFMRP Joint Supervision Mission

17-28 September 2012

November 20, 2012

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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

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

GDP

Gross Domestic Product

GoT

Government of Tanzania

HCMIS

Human Capital Management Information System

IAS

International Accounting Standards

ICT

Information Communication & Technology

IFMS

Integrated Financial Management System

IMF

International Monetary Fund

IPSAS

International Public Sector Accounting Standards

ISSAI

International Standards of Supreme Audit Institutions

JAST

Joint Assistant Strategic Framework

KPA

Key Policy Action

KRA

Key Result Area

LGA

Local Government Authority

M&E

Monitoring and Evaluation

MDAs

Ministries, Departments and Agencies

MoF

Ministry of Finance

MoHSW

Ministry of Health and Social Welfare

MoNRT

Ministry of Natural Resources and Tourism

MTEF

Medium Term Expenditure Framework

MTSPBM

Medium Term Strategic Planning and Budgeting Manual

NAO

National Audit Office

OC

Other Charges

OI

Outcome Indicator

PAC

Public Accounts Committee

PAF

Performance Assessment Framework - General Budget Support

PBB

Program Based Budgeting

PEFA

Public Expenditure and Financial Accountability

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PE

Procuring Entities

PFA

Public Finance Act

PFM

Public Financial Management

PFMRP

Public Financial Management Reform Program PMO-RLG

Prime Ministers Office - Regional Authorities and Local Government

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

1. SUMMARY AND INTRODUCTION ....................................................................................................................... 5

2. METHODOLOGY .................................................................................................................................................. 6

3. FINDINGS ............................................................................................................................................................. 6

PAF 2012 ....................................................................................................................................................................... 6

Key Results Areas – Status Report ............................................................................................................................ 9

KRA 1 Revenue Management ...................................................................................................................... 10

KRA 2 Budgeting and planning ..................................................................................................................... 11

KRA 3 Budget Execution, Transparency and Accountability ............................................................................ 12

KRA 4 Budget Control and Oversight ............................................................................................................ 13

KRA5 Change Management, Program Management and Communication ........................................................ 15

PMO-RALG ................................................................................................................................................ 16

4. SUMMARY AND COMMENTS ........................................................................................................................... 18

ANNEX A: PFMRP IV MONITORING AND EVALUATION RESULT FRAMEWORK 2012-2017 –September

2012 ......................................................................................................................................................... 19

ANNEX B: ToRs of the PFMRP Joint Supervision Mission 2012 ............................................................... 67

ANNEX C: Mission Participation from GoT (not exhaustive) ................................................................... 70

ANNEX D: Mission Participants From Development Partners ................................................................. 72

ANNEX E: Final meeting schedule ............................................................................................................ 74

ANNEX F: Draft terms of reference for PEFA study on Central and local level ........................................ 80

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1. SUMMARY AND INTRODUCTION

PFMRP IV is the fourth phase of the Government of Tanzania`s PFM reform agenda and runs from July

2012 to June 2017. This report describes the findings of the first in a series of annual Joint Supervision

Missions intended to evaluate results being achieved, and where necessary revise strategic directions to

ensure effective delivery. The present review focuses on the first 3 months of implementation of PFMRPIV

and feeds into the annual GBS review via assessment of the PAF by 31 October.

The mission´s main observations are organised under five Key Results areas (KRAs) relating to: (i)

Revenue management (ii) Budget and planning (iii) Budget execution, transparency and accountability (iv)

Budget control and oversight and (v) Change management, programme monitoring and communication.

The joint assessment concluded that PFM reforms are making tangible progress. In regard to the PAF

2012 assessments, PFM as an underlying process has been rated as satisfactory with 90% achievement.

Three of four assigned KPAs were not achieved although work has been initiated on all KPAs and progress

will continue to be followed under the M&E framework. Three of the five PFM RP outcome indicators were

achieved while targets were not met for the remaining two.

The PFMRPIV M&E framework includes 160 detailed milestones. The majority of these were found to be

broadly on track where “on track” is defined as an activity that is planned and in process or that is

considered achievable based on the deadline established in the M&E. A small number have already been

achieved; others are considered to be at risk, in need of revision or delayed. Further details are contained in

the main body of the report and M&E matrix. A series of actions were identified during the mission that

require follow up by the Technical Working Groups within the respective KRAs.

Objective of the Supervision Mission

A Joint Supervision Mission of Phase IV of the PFMRP was successfully conducted from September 17th to

28th, 2012. The objective of the mission was to:

Assess progress against the jointly agreed General Budget Support (GBS) Performance

Assessment Framework (PAF) indicators,

Assess the implementation status of PFMRP under each Key Results Area (KRA) based on the

milestones that have been established in the Phase IV M& E framework

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.

To establish the dialogues within the Technical Working Groups for each Key Result Area (KRA)

and to establish the ongoing engagement of these groups as the focal point for the collaboration

and engagement between the DPs and the GoT component managers.

To develop the Terms of Reference for the 2012-13 PEFA Study (see draft tors in annex E)

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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 DPG Secretariat. One consultant was engaged to coordinate and

facilitate the process. It was agreed that this Supervision Mission should not take the form of a performance

audit but rather it should be used as an opportunity to share knowledge, jointly assess progress, identify

challenges at an early stage, discuss and chart the way forward.

The documents used as guidance for the mission were the PAF 2012 Document together with the PFMRP

IV Strategy, its Monitoring and Evaluation Framework and the Operations Manual. A selection of other

documents including PEFA reports, recent CAG reports and recent IMF and WB reviews were also used to

inform discussions during the mission.

The mission activities were structured around the 5 Key Result Areas (KRAs) that are articulated in the

Phase IV Strategy and the Monitoring and Evaluation Framework.

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

Technical Working Groups (TWG) consisting of the key PFMRP Component Managers and DP

representatives have been formed under each KRA. The TWG will share the responsibility for their

respective Key Result Areas, under supervision of the PFMRP secretariat and leadership of the MoF

Permanent Secretary. The TWG discussions were the primary methodology used during the mission 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. Discussions with other stakeholder groups including CSOs were

also conducted during the mission to ensure that the interests and representations of these groups were

considered in the review.

3. FINDINGS

PAF 2012

The assessments completed during this supervision mission will feed into the GBS Annual Review, including

the GBS 2012 Report. The assessment will include the rating of PFM as an underlying process together with

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the performance against 4 key Policy Actions and 5 outcome indicators. The results of this assessment are

summarized below:

The PFM Reform Program Underlying Process was rated as satisfactory based on an achievement of 90%

of the indicators.

One out of four KPAs was rated as achieved during the Supervision Mission. While action on the remaining

three KPAs had been initiated, the milestones established in PAF 2012 were not achieved. These KPAs

were derived from the PFM RP M&E framework and progress will be followed by the Technical Working

Groups.

The outcome indicator related to the average level of compliance on procurement audits has been rated as

achieved despite the 74% result which is marginally below the 75% target. The underlying rational for the

rating is based on materiality considerations related to the lower average scores produced by the LGAs. The

final results from the PPRA audits for the top 20 procuring entities scored 67.7% which is the baseline for

targets in the 3 coming years. Of the five outcome indicators, three were achieved while the outcome

indictor related to the reduction in outstanding audit matters and the tax exemption ratio against GDP was

not achieved. It should be noted that responsibility for the failed outcome indicator on outstanding audit

matters has to be shared by the DPs. Complications related to definitions and access to data were not

adequately considered in the development of these outcome indicator for PAF 2012. It is expected that

these issues will be resolved with baselines and targets established for subsequent years.

Table 1: General Budget Support Performance Assessment Framework

Underlying Process

PFM Reform Successful Status Comments

Improving consolidation and reporting of GOT cash balances by closing numerous bank accounts held by spending units

Six bank accounts operated in each LGAs by July 2012

Achieved 10%

Dormant accounts continues to be reconciled and closed

i) Dormant accounts identified ii) Closed accounts verified by

letter from AccGen to BoT to close dormant accounts.

i)Achieved ii)Achieved

10%

Towards Treasury single account and allowing overnight sweeping implying increased

Capacity building on TISS. i)Plan on capacity development to all present and future users ii)sample of reports form training iii)register of staff attended training

i) Achieved ii)Achieved iii)Achieved

10%

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usage of EFT and TISS

Progress against action plan on TISS connectivity to regions and Sub-treasuries

Achieved 10%

Steps Towards a comprehensive Debt Management Office

Debt management report from WB Debt management mission and action plan on steps towards establishment of Debt management office circulated before 1st of September 2012

Not Achieved 0% GoT have sent the draft report to WB in October requesting it to be finalised and are awaiting WB approval.

Submit request to Public Service Management for approval to Commission a new Debt management Department in the MoF

Achieved 10%

Progress towards a completed asset valuation of MDAs and RAs

i)Completed valuation of 16 MDAs ii)TOR for asset management policy approved by DGAM iii) 5 year plan for valuation of 34 MDAs approved by DGAM

i) Achieved ii) Achieved iii) Achieved

10%

PFM Reforms continues smoothly

Annual and end-report of PFMRP III

Achieved 10% The draft Annual and end report for PFMRP III has been prepared and approved for a positive rating. Revisions and adjustments have been agreed with dead-line attached

All Phase IV guiding documents are finalized/approved with 2012-13 annual work plan under execution

Achieved 20%

Key Policy Action

Interface central and local government ICT with technical control and new software acquisition, and all new software developed becomes centrally coordinated

Not achieved Procurement process expected to be finalised in November

Increase budget transparency and public access to key fiscal information

A) Budget Guidelines - achieved B) Executive Budget – not achieved C) Approved Budget - achieved

Achieved To note; C: Volume 1 not posted on webpage but available. Parliament decision inconsistent and GoT awaits corrective mandate. Citizen Budget published.

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D) Citizen Budget – pending

Streamline and rationalize national systems and processes for intergovernmental transfers to LGAs

Not achieved Procurement process expected to be concluded in November.

The Government enhances domestic tax revenue (tax and non-tax) mobilization with better transparency and business environment

Not achieved The bill is formulated and in process but not submitted to parliament.

Outcome Indicators

Average level of compliance of:

i) All audited procuring entities and – ii) The top 20 procuring entities with the (revised) Procurement Act 2010

Achieved i) 74% (target 75%) ii) 20 top procuring entities

was 67.7%. The future compliance targets for the 20 top procuring entities will be as follows; FY 2012/13 : 71.1% FY 2013/14 : 74.5% FY 2014/15 : 77.9%

Non-salary (OC-DEV) funds released to RAS and LGAs by end Q3, as percentage of the Resources Available3 (OC+DEV) for the year

Achieved 60.1% of originally approved budget against target of 60%

Reduction in outstanding audit matters

i) Reduction in cases from last year ii) Targets for 2013 and 2014 by June – not met

Not met NAO reports that the data is available but not in desired format. The targets have not been set by GoT. It is recognised by DPs, NAO and GoT the development of this indicator has been more challenging than anticipated.

Domestic tax revenue + non-tax revenue as a share of GDP

Achieved 17. 5% against target of 17.6% (considered as achieved) for the purpose of this report.

Value of tax exemptions as a share of GDP

Not met 3,8% against target of 1,9%

Key Results Areas – Status Report

The following section provides an overview of the results of the Technical Working Group discussions within

each KRA. These discussions were guided by an agenda which included the review of PAF 2012 indicators,

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the status of and progress achieved against the milestones set out in the M& E framework together with a

discussion of any challenges or obstacles that have been experienced by the component managers.

These findings are summarized in the chart below:

Note: 1. The X- axis represent the status on the implementation of milestones, where as the Y- axis

represent a number of milestones in the PFMRP IV M&E Result Framework.

2. On track refers to milestones that are in the process of being implemented or for which there is no

known impediments toward being achieved.

The detailed findings have been captured in the M&E framework which is attached as Annex A.

Where required in support of the PAF 2012 appropriate documentation has been collected and provided to

the PFM DPG secretariat.

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

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It was jointly agreed during discussions that the milestones established for output 1.1 needs to be defined

further and the activity should be held in abeyance until clarification was obtained. The methodology for

training in revenue forecasting is under discussion however budgets will limit training in 2012.

The non-tax revenue study is in process and the draft report is being developed at this time. The Draft Tax

Administration Act has been submitted to the inter-ministerial committee for approval and is expected to be

submitted for cabinet approval in October. It is not expected that the bill will be submitted to parliament in

November. Some further definition of the longer term milestones attached to the non-tax revenue study will

be required.

The new TR Act is expected to be submitted to Cabinet in October. Once this bill is passed the revision of

Parastatal Acts can begin. TR’s capacity development plans which include much needed increased staff

levels and specialized training have been submitted for approval and needs to be reviewed in tandem with

act being approved.

Revenue training for PMO RALG staff appears to be on track. The LGA own source revenue study is yet to

begin. Training on own source revenue and the development of the own source database will follow on the

completion of the study. The review of the LGA Finance Act is underway but amendments will likely not go

to cabinet prior to June 2014.

The revision of the JAST II is underway but the December deadline for implementation of the new guidelines

will not be met. There is lack of clarity on the planned revision of the JAST II guidelines and further

discussion would be needed prior to completion. The report on the trends of donor project funds using the

exchequer system will be available in 2012 and each October thereafter – ahead of the target date.

The need to continue technical working group discussion involving multiple components were suggested by

several component managers and backed by the DPs. Challenges going forward includes sequencing of

activities (studies, legislative changes, capacity building and training etc.), identifying and quantifying

different sources of revenue at various levels, coordinating and standardizing training and harmonizing

revenue collection methods (at both central and local levels).

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

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The Program Based Budget (PBB) action plan has been developed with support of East Afritac and is

currently in process of implementation. The definition of programs-/sub programs required for this process

have started and is well on its way and the chart of accounts has been modified with indicators extracted

from the MKUKUTA and five year development plans. PBB will be piloted in 5 MDAs. The plan to train

MDAs, RSs and LGAs staff on PBB has not been developed to date and will require a follow up.

The review of the MTSPBM, undertaken by a team of MDAs representatives, is projected to be completed

by February 2013 for application in 2013-14. The revision of the budget cycle, initiated by the PAC, is

waiting for cabinet approval and should be in place for budget year 2013-14. IMF East Afritac has provided

to GoT the recommendations to review the PFM legal framework. The government is still reviewing the

recommendations. Training on resource prioritization for RSs and LGAs started in 2012 with PMO RALG

involvement. During the mission it was jointly agreed that further discussion is required to clarify an

appropriate methodology for quality assurance on quarterly budget performance reports.

The development of ToRs by PMO - RALG for the in depth review of budget allocation formula had not been

initiated prior to the mission. This process will need to be accelerated in order to meet the proposed

December 2012 deadline. It should be noted that progress on this activity may be impacted by delays in

PMO- RALG’s access to basket funding.

While generally satisfactory progress is evident in all areas follow up discussions in the Technical Working

Group are recommended to ensure that there is appropriate engagement and division of labour between

PMO - RALG and other Ministries on the budget allocations, the transition to Programme Based Budgeting

and capacity development issues.

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 Improved public procurement performance by PEs by 2015

Output 3.2 Strengthened public sector procurement by June 2015

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

Output 3.4 Strengthened public debt management capacity by 2015

Output 3.5 Improved integrity and content of government financial statements and the migration from IPSAS cash to IPSAS accrual accounting for all government accounts is progressing in accordance with plans.

Output 3.6 Improved accountability in management of Government Assets for supporting migration to IPSAS Accrual

The results of annual procurement audits were published in Nov.2012 with an average compliance rate of

74%. The new compliance targets under output 3.1 are expected to be established in November 2012. The

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development of new procurement implementation and monitoring tools and the dissemination of the new

procurement regulation is on track for completion by December 2012.

The Action Plan for implementing the PPD as per the Public Procurement Act (PPA) was completed. The

finalization of the PPA regulations and the development of the National Procurement Policy are on track.

The draft policy is expected by June 2103. Capacity development for the Procurement Policy Department

staff has not yet started but the ToRs for the training needs assessment have been completed and this

activity is on track for completion by June 2013. A database of procurement staff is in place.

The Acc Gen had completed cash management training for 200 staff. A total of 16,760 bank accounts have

been closed to date and an additional 8256 dormant accounts have been identified for closure. All LGAs

are using the prescribed 6 accounts for operations with effect from July 1, 2012.

The agreed action plan from the World Bank debt management review has not been formally shared;

however, actions are underway to establish the new unified debt management division. The proposed

structure of the new debt management office has been endorsed by the National Debt Management

Committee and is expected to be passed at the next meeting of the Civil Service Commission. No further

development activity can be completed until this approval is in place. The development of the national debt

management policy by June 2013 may be impacted if the approval is delayed. The MoF now maintains the

debt database.

The Accountant General’s plan for the transition to accrual accounting has not been shared but discussions

suggest that the activity is on track. Training at the MDAs level has started and all MDAs have been advised

to provide accurate closing balances for 2012 to support the first steps in the transition. The Accountant

General’s office confirmed that draft MDAs financial statements including the major accrual balances were

at hand. Valuation of asset to 36 MDAs have completed and assets for 20MDAs are already uploaded to

EPICOR and the completion of the remaining institutions is planned and considered on track.

Technical Working Group discussions with the Accountant General and CPAD should be scheduled for early

November in order to update the status on the major KRA 3 outputs.

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 by 2016

Output 4.2 Strengthened External audit functions by 2016

Output 4.3 Improved transparency on audit reports (central, local and Parastatal levels) to strengthen scrutiny and accountability.

Output 4.4 Improved performance of Parastatals by June 2016.

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Output 4.5 Strengthened capacity of oversight functions of Parliamentary Accounts Committee in Tanzania Mainland

The internal Auditor General’s operational plan is awaiting approval and the process to develop the

necessary manuals and guidelines is on track and expected to be completed by June 2013. Surveys have

been undertaken to identify weaknesses in MDAs audit committees and the plan to acquire and pilot audit

software is on track and expected to be completed in 2014. A training needs assessment and plan was

completed and training of champions and senior management personnel is underway. Technical audits have

now been completed for 30 projects. Progress towards the amendment of the Local Government Finance

Act giving the IAG authority over the LGAs internal audit function should be followed by PFM RP as a critical

element for output 4.1

The report on the legal amendments required to move the NAO to AFROSAI level 3 is on track for

submission to the Attorney General by December. 2012. The plan to move 50% of the NAO staff to

independent accommodation is on track but challenges may develop as a result of increased staff numbers

and funding constraints. The NAO have completed five performance audits (VFM) this year and are well on

track to reach target on producing reports without external assistance. The training of auditors on IAS

standards, using a Champions group, is on track. The alignment of audit methodology with ISSAIs is also on

track for completion by June 2013.

The NAOs transition to the use of automated audit systems and software is on track with the completion of a

training needs assessment and the plan to activate four additional modules in TEAM MATE. Work on the

Citizen’s Audit reports by two CSOs is reportedly underway at this time.

The Treasury Registrar’s (TR) plan for the harmonization of Parastatals financial years and audit coverage

has not been completed to date. Follow up TWG discussions will be scheduled to ensure this activity is

supported and facilitated by the NAO and other stakeholders. The TR has selected 10 Parastatals to pilot

performance contracts and follow up TWG discussions will focus on the details of these contracts. TR has

started to input data into the Treasury Registrar Information System and plans to develop a monitoring

framework and compliance mechanism once the TR bill has been enacted.

It has been agreed that the output related to parliamentary committees and parliament office will be revised

following discussion with committee members in order to define PFMRP support that is coordinated with

other donor support programs.

Discussions confirmed that satisfactory progress has been made against most major milestones, but several

require further definition and the technical working groups should aim to meet regularly to clarify and

maintain momentum. A common understanding on how the value of outstanding audit findings is calculated

has not been reached but the NAO has agreed to set these out in writing and is committed to creating a

comprehensive database. Follow up meetings will be held with Donor Partners during October. Setting

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targets for 2013 and 2014 – critical for the PAF - will require further discussion with NAO, the Internal Audit

General and Accountant General as a matter of priority

KRA5 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

KRA 5 includes a relatively diverse group of outputs related to the management of change within PFM RP,

the coordination and management of the program, ICT integration, LGA fund flow architecture and other

matters that have cross cutting implications. The PAF 2012 includes 2 KPAs related to the completion of the

first steps in the ICT integration (5.1) and fund flow (5.12) outputs. It is unlikely that either of these KPAs will

be achieved by the target dates.

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The Technical Working Group discussions with the responsible component managers suggest that little

attention has been given to the sequential planning of activities under these outputs beyond the mapping

studies and follow up TWG discussions are required.

Outputs 5.5, 5.7 and 5.11 related to PFM, change management, strategic planning and Result Based

Management capacity development have been assigned to the MOF Human Resources department. The

TWG discussions with the Director suggest that activity planning for these outputs is complete and the major

milestones should be achieved on schedule.

The recruitment of the PFM secretariat (5.8) is well behind schedule but 4 of the 6 core positions are likely to

be filled by the end of October, 2012. The remaining 2 positions will have to be re advertised. It is

acknowledged that the secretariat personnel will come under significant performance pressure from the

outset and will require support and guidance to develop detailed work plans prior to the December, 2012. A

fully functional secretariat has implications for the whole program. In this regard the development of effective

internal / external communication and the execution of program coordination activities should receive

focused attention.

The leadership provided by the Planning Division, MoF, is a necessary element for the successful

implementation of the key outputs under KRA 5. The effectiveness of this leadership and the absence

PFMRP secretariat during the start-up period have been raised as a concern in most TWG discussions. It

was observed that the schedules of the senior program management personnel prevented them from

participating in the supervision mission. This restricted the time and scope of TWG meetings related to

program and change management. There is still opportunity to intensify the effort directed towards program

management and coordination in order to ensure the effective and timely execution of key KRA 5 activities.

Follow up TWG discussions with DFMIS, Planning Division and the Administration and Human Resources

Division within MoF should be scheduled for early November.

The incorporation of Zanzibar into PFMRP Phase IV will require further discussion between the relevant

Zanzibar and DP representatives. The PFMRP DPs have planned a review trip to Zanzibar in October,2012

to start the discussions with a view to identifying appropriate areas for support that are coordinated with

other donor support to PFM reform.

PMO-RALG

Representatives of the PFMRP supervision mission met with PMORALG staff in Dodoma in order to

improve the overall understanding of the current and potential areas of PFM RP’s engagement with PMO-

RALG and the LGAs. The major outcome of these meetings was an acknowledgement that current support

levels do not reflect the levels of funding that needs to be directed to PMO RALG in order to support their

PFM reform initiatives. It was agreed that the PFMRP would conduct follow up discussions with PMO- RALG

in order to develop a more appropriate funding and activity plan. It was further recognised that consultation

and coordination with PMO-RALG on PFMRP IV activities that have a direct or latent impact on LGA

operations requires improvement. The TWG discussions with PMO RALG should include Planning Division,

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PMO- RALG and representatives from the relevant Central Government Departments and should be

scheduled to get underway by mid-November at the latest.

Technical Working Groups

The TWG discussions confirmed that the PFM component managers under KRAs are engaged and working

towards the achievement of the PFM objectives that have been defined in the M&E framework. These

discussions also confirmed the underlying value of the TWGs as the format for the continued engagement

between PFMRP DPs and the individual component managers. There are a number of clear gains for both

the component managers and the DPs in using these groups strategically to keep the reform on track and to

keep essential information channels open so that the broader DP community has more up to date access on

PFM Reform progress and issues. This will require that the both the DPs and the GoT ensure the continuity

of the TWG members and it is recommended that TWG membership be formalized under each KRA. The

counterpart managers identified the need to periodically widen TWG discussions to include the component

managers that are engaged in common and interrelated activities.

Program Management - Coordination

The coordination of the PFMRP Phase IV program has been raised as an issue in discussions with the

component managers and amongst the DPs. The issues that have been elevated during the mission focus

on the weak planning and execution of essential program coordination activities including communication

and collaboration amongst the stakeholders, the preparation of activity and financial reports and the

dissemination of PFMRP IV documents and manuals to the stakeholder group. A number of component

managers expressed frustration regarding accessing fund in the first quarter.

It is recognized that starting implementation of PFMRP phase IV requires the presence of a new PFMRP

Secretariat to be in place by 1st July 2012. The absence of PFMRP Secretariat has been a challenge for the

GoT in implementing PFMRP IV. Efforts to recruit PFMRP secretariat is at final stages and thus it is

expected that PFMRP IV will be smoothly implemented after that secretariat has been put in place. In order

to address communication challenges encountered in the previous phases, the new secretariat will have a

communication specialist responsible for communicating and liaising with different stakeholders on PFMRP

interventions and achievements.

Donor Coordination

Discussions with the component managers and senior officials have confirmed that the Donor community is

not doing enough to internally coordinate their activities within the overall scope of PFM reforms. The

overlap of missions, each of which creates time demands on the same PFM component managers has been

recognized as a problem. Issues have also been identified with donors moving ahead to develop and plan

PFM reform activities without reference to the joint PFMRP program group. This has obvious implications for

18

duplication of effort and the overall cohesion of PFM efforts. There is a similar issue related to the provision

of technical and advisory supports to PFMRPs component managers that ultimately lead to action plans.

These plans are not being communicated or shared with PFMRP so that they can be coordinated with or

factored into the existing program structure and the M&E framework. The correction of this weakness will

require the coordinated effort of all DPs in different sectors.

4. SUMMARY AND COMMENTS

The review of progress against the M&E framework would suggest that PFMRP Phase IV started fairly. The

TWG discussion confirmed that component managers are engaged, activities have been defined and work

is underway to advance the key PFM agendas under most KRAs. At the same time the volume of work that

is scheduled for completion in the next 12 to 24 months is quite ambitious. It is important to note that a

number of the key PFM reform initiatives are dependent on the amendment of Acts which require approval

of the Parliament. The parliament being an independent organ with its procedures of approving different acts

and such procedure can not be questioned by the Government.

Discussions also highlighted that the complexities of some PFM initiatives may not have been fully reflected

in the M&E framework and adjustments will be required to more accurately define the milestones and

schedule associated with these initiatives. The broad scope of the PFM program remains a concern in terms

of programme coordination and management, resources mobilization to finance programme activities and

linkage with interrelated reforms. Program coordination and the early identification of emerging challenges

will be critical to ensuring that the momentum of the major cross cutting initiatives is maintained.

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.

Given the slow start up on some of the activities, the review of progress at the mid year will help to identify if

there is any improvement in the areas highlighted in this report.

5. ANNEXES

ANNEX A: PFMRP IV MONITORING AND EVALUATION RESULT FRAMEWORK 2012-2017 –September 2012

KRA 1 Revenue Management:

Strengthened systems, processes and procedures for improving the operational capability of the revenue

collection by June 2016

Outputs Performance

Indicators

Indicator Baseline

2011

Indicator Target 2017 Milestones Comments from

Supervision Mission

2012

Output 1.1: Improved

quality of forecasting of

fiscal aggregates for

three years on a rolling

basis

Aggregate revenue

out-turn compared

to original approved

budget (PEFA: PI-3)

Actual domestic

revenue collection was

below 92% of

budgeted domestic

revenue estimated in

no more than one of

the last three years.

(PEFA: C)

Actual domestic

revenue collection is

below 94% of budgeted

domestic revenue in no

more than one of the

last three years. (PEFA:

B)

Study on forecasting targets and actual revenue collection by June 2013

Needs to be revised. The mission agreed that there is a need to review Output 1.1 (June 2013) (no budget envisaged) and that there is a need for additional and solid milestones and activities to be formulated. There is a general need for capacity building in terms of forecasting also within MoF. There is also room for improvement on the Non-tax revenue forecasting.

20

Recommendations from study on forecasting targets and actual revenue collection informs budget preparations for budget 2014/15.

Subsequently to be revised. One element to be considered is a revision of the model used by MoF to capture both newer aspects within tax such as regional elements and the non-tax elements.

Increase in number

and quality of

participating MDAs

and LGAS with staff

capable providing

accurate, realistic

revenue projections

Less than 5% of

participating MDAs

and LGAS providing

accurate, realistic

revenue projections in

2010/11

50% of participating

MDAs and LGAS

providing accurate,

realistic revenue

projections by 2017

A team of trainers in revenue forecasting developed by June 2014 (milestone to be reviewed in line with recommendations from the study)

On track – target within reach. Priority will be given to those MDA’s with higher revenue potential (5 MDA’s suggested to be chosen (including MEM and MNRT). Training for LGA’s is also found to be very important, but potentially also costly. With limited resources, there is need for prioritization and possibly sequencing on LGA level.

Output 1.2: The

Government improves

efficiency in domestic

revenue mobilization

both at the policy and

the administration

levels by updating legal

instruments towards

Increase in collection

of Total and non-tax

revenues as

percentage of GDP

Total revenue

collection was 16.5 %

of GDP in 2010/11

Non-tax revenue was

1.2% of GDP in

Total revenue collection

will be at least 17.8% of

GDP by 2013/14-

Non-tax revenue will

be at least 1.9% of GDP

by 2013/14

The study on Non Tax Revenue (NTR)-“Integration and Harmonization of Revenue Collection Systems” completed by November 2013.

On track. Non-tax revenue study is progressing. An inception report has been discussed with key stakeholders (income-generating MDA’s). The actual report is under development.

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international best

practices

2010/11

Submission of a bill to Parliament to enact Tax Administration Act for the purpose of establishing a common tax procedure among different taxes collected by Tanzania revenue authority (TRA) by November 2013

Review Laws, rules and Regulations for Local Government revenue system to improve LGA’s own sources in line with best practices by June, 2016.

Take policy action to improve revenue mobilisation from natural resource sectors by June 2014

At risk. Cabinet approval process is on-going. Currently submitted to Inter-ministerial Technical Committee (Permanent Secretaries) awaiting a date for discussion. Expect Cabinet approval mid-October with the aim of submitting a draft Act to Parliament in November. Before this can happen, it needs to go through the Attorney General.

The review of LGA legislation is treated below in output 1.3.

On track –target within reach. Policy action on non-tax revenue – to be defined. This does not necessarily have to stem from non-tax study as this deal with collection. Relevant actions should be discussed with MNRT, where many initiatives are already

22

The action plan to implement the recommendations from review of non tax collection developed and implemented by 2016

Computerised revenue collection to at least 50% of participating MDAs and LGAs by 2016

on-going.

On track – target within reach. Agreed to include an interim milestone in order to track progress, so that the action plan should be developed by June 2014, while implementation of the plan is still assessed in 2016.

Needs to be revised. Computerization: needs a clearer definition. MDA’s and LGA’s clearly found a need for increased use of ICT as collection method. The non-tax study partly addresses the issue and the milestone could therefore be revisited once the study is finalised and the action plan developed. MNRT are already planning a pilot in this area and lessons should be drawn from this.

Increase in Revenue

from Parastatals as

percentage of

Approved domestic

Revenue from

Parastatals was 0.55 %

of total approved

domestic revenue

Revenue from

Parastatals will be 4%

of total approved

domestic revenue

New TR's Bill presented to the Parliament by June 2013

On track. The final draft Bill is being submitted to Cabinet in October. Aim for presenting the Bill to

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revenue collection

collection in 2010/11 collection by June 2014

150 Parastatals’ Acts Reviewed to be in line with the New TR Act by June 2014

TR’s Office Capacities enhanced by June 2014

parliament in October (or February if October is not possible).

On track. The Review of individual parastatal Acts begins after the Bill is passed. Several pieces of legislation have been identified as needing revision after the Bill is passed. This will begin shortly after. The need for early planning and budgeting of such activities was underlined.

At Risk. Capacity building at TR (human and office) was recognised as a priority and a big task. TR has currently 56 staff but the organisational structure provides for 205. It is acknowledged that this cannot happen at once due to limitations in terms of salary, office equipment etc. There are plans for 50 this year, but it still needs central approval.

24

M& E system for Parastatals reviewed and implemented by June 2015

Training of new and existing staff (mainly in specialised functions) was also underlined. There is need for highly specialised training as well as more routine training. The need for a long-term capacity development and training plan was underlined. Further, an overview should be provided of what is realistic in terms of hiring, training and equipment this FY year.

On track – target within reach

Tax exemptions as a

percentage of GDP

2.2% Target :

2012 ; 1.9%

2013; 1.6%

2014: 1.2%

Review the current system of tax exemptions with the value-added Tax (VAT) regime and amend the VAT Act with a view to be in line with international best practices by

On track. The process of amending the VAT act is progressing. TA is provided by IMF. A mission in July will be followed up by a mission in October working on the revised Act. The Act is expected to be

25

November 2014 approved by cabinet by November 2013. It is recognized that incorporation of changes in the FY 2014 budget will be unlikely. It has further been decided to conduct a broader PER on the costs and benefits of tax exemptions. This study will probably be available from March 2013 to feed into the 2013/14 budget.

Output 1.3:

Strengthened capacity

of local government

authorities to collect

revenue by 2015

Local Government

Own source revenue

to GDP

Actual revenue

collection by LGAs

2010/11: Tsh 158,280

million and 0.46 % of

GDP

Local Government Own

source revenue will be

1.5% of GDP

Completed assessment and evaluation of revenue potential for all major own sources of revenue to all LGAs by June 2013

PMO - RALG staff and Finance Management Officers at RS to be trained in tax revenue plans and budgets to spearhead LGAs tax

At risk. The assessment of revenue potential was found to be crucial. ToRs should be drafted soon. Due to limited budget, it may not be possible to assess all sources in all LGA’s, so a representative selection should be considered to begin with.

On track. PMORALG is in contact with TRA about using consultants from the Tax Training Institute to carry out the training in revenue plans and budgets.

26

reviews and reforms. June 2013

Local Authorities Tax administration teaching and practice modules established and TOT completed for all finance management staff at the regional level. June 2013.

Four (4) Revenue Accountants, 3 Council management team members and 1 FMO from each LGA and RS are trained on own source revenue management by June 2014.

Establishment of known and clear revenue database by each source of revenue, presence of trained

Budget constrains might put the milestone at risk.

At risk. No update was given concerning the training modules and TOT.

Need to be revised. The planned training on own sources of revenue will only start after the study/assessment is done. However it is already in the budget for this FY – agreed that is should be removed and money can be spent on other activities, i.e. the study. Step-by-step approach is envisaged and should be reflected in AW&B: Study Train PMORALG and RS Develop training modules Train LGA.

On track. The database

is supposed to be

developed based on

the study and

encompass i.e.

sources, rates,

27

personnel and a clear follow up arrangement at PMORALG and RS levels by June, 2014.

potentials, budget,

and collection

methods.

Local Government

legislation reviewed

by 2016 (Act No. 7, 8

and 9)

The last amendment of

the Local Government

Finances Act No.9 of

1982 was done in year

2002. The act does not

adequately address

issues of equity,

change of technology

and other

administrative issues

to enhance local

revenue mobilization

considering the

present and future

LGAs circumstances.

Local Government

Finances Act No. 9

reviewed by 2014

Completed study on the effectiveness, relevancy and sufficiency of the provisions of the Local Government Finances Act No. 9 by June, 2013.

A bill for an act to amend the Local Government Finances Act No.9 of 1982 is finalized and submitted to the Cabinet by February, 2014

On track. This FY the review of Local Government Finance Act ongoing.

At risk. The discussions concluded that the actual amendments will probably not go to cabinet before June 2014. Stakeholder workshops will be very important.

Output 1.4: Increase of

donor funding that

flows through the

exchequer system by

2016

Percentage of

disbursement of

direct project fund

portfolio via the

exchequer

20% 50% National framework for managing development co-operation (JAST) reviewed and put in operation by December 2012

At risk. The JAST II process is rolling. A draft concept note expected in October to be discussed among key stakeholders after which a draft JAST II will be developed and presented for broad consultations. Final draft is expected to need cabinet

28

Revised JAST and AMP user guideline clearly communicated to both parties by December 2012

Analysis of trends of the direct project fund portfolio disbursed via the exchequer system published and shared annually by June 2015

approval. The discussion concluded that the deadline December 2012 will probably not be met (June 2013 more likely).The output/ target might need to be revised.

To be revised. The content of the proposed revision of JAST and AMP needs to be further defined and milestone should possibly be split into two separate activities – one is the AMP guidelines, which are updated every year and needs to continuously be disseminated to DP’s, MDA’s, LGA’s, RS’s, NSA’s etc.

On track. The annual report of trends will be available already this year (target was 2015) as it can now be generated from the AMP and published every year in October.

29

KRA 2 Budgeting and planning:

Strengthened capacity of planning and budget management, including results and program based budgeting,

within MOF, MDAs and LGAs by June 2016.

Outputs Performance Indicator Indicator Baseline

2011

Indicator Target

2016

Milestones Comments from

Supervision Mission

2012

Output 2.1:

Strengthened

capacity of MDAs,

RSs and LGAs in

implementing

program based

budgeting by June

2016.

Presence of Programs-based

budget classification (PI-5)

The 2008/09 budget

formulation and

execution is based

on administrative

and GFS –

compatible

economic

classification. There

is no CoFoG-based

functional

classification and

budget

documentation and

reporting system

(PI-5C)

The budget

formulation and

execution will be

based on

administrative ,

economic and

functional

classification

(Using at least the 10

main CoFoG

functions), using

GFS/CoFoG standards

or a standard data can

produce consistent

documentation

according to those

standards

All sub programs, objectives and performance indicators defined by Dec 2012

Chart of accounts Modified to accommodate program based budgeting by August 2013 (ACCGen)

MTEF reviewed to make program based budget compatible by

On track. Programs and sub-programs have been (tentatively) defined and indicators are fed in by strategic documents like MKUKUTA II and FYDP. The MoF, MoE, MoHSW, MoAgr and MoW will be piloted.

Achieved

On track - target within reach

30

(PI-5B) September 2014

Progress on the PB Action Plan implementation

On track. Action Plan to move to PBB (Program Based Budgeting) is in place and the work has started. PMO RALG and LGAs representatives are in the process of being included into the work as this has not been initiated yet. The LGAs autonomy in the budgeting process needs to be preserved and needs to be recognised. DPs and GoT agreed to have a follow up meeting on PBB.

Increase in number of MDAs and

RSs with skilled staff for

implementing a program based

budgeting

In 2011, there are

no staff in MDAs and

RSs with necessary

skills to implement

program based

budgeting

95 % of MDAs and RSs

have staff with

necessary skills to

implement program

based budgeting

Completed phased training for all MDAs and RSs by 2014

Completed phased training for all LGAs by 2014

On track. Training involving staff from MDAs, RSA and LGAs are programmed.

On track. Synergies can be sought with LGRP II.

Output 2.2:

Increased

effective

utilization of

Planning and

budgeting tools

Percentage increase in number

of MTEF budgets meeting the

MTSPBM requirements by 2016

In 2011, less than

75% of MTEF

budgets are meeting

the standards of

MTSPBM

98% of MTEF budgets

are meeting the

MTSPBM standards

MTSPBM reviewed by June 2013

On track. MTSPBM is planned to be reviewed to accommodate the FYDP. A National facilitation team is to undertake the

31

by 2016

Sixty MDAs, 21 RSs and 133 LGA trained in MTSPBM by June 2014

Reviewed MTSPBM to be applied during FY 2013/14

Annexes to budget book volume II for Executive Agencies completed by June 2014

review. It consists of representatives of MoF, PoPSM, PMO RALG, PM Office, Planning Commission. The work has not started but GoT is confident it will be finalized by February 2013.

On track. Review will be followed by change of manual and training of stakeholders. Training will be done by facilitation team;

On track. Application of new MTSPBM in FY 13/14 is foreseen.

On track. GoT will introduce more details on expenditures of public institutions that partially depend on GoT budget such as TRA, University, etc

Orderliness and participation in

the annual budget process by

2016 (PI-11)

i) A comprehensive

budget calendar

exists but delays are

sometimes

experienced. MDAs

have 6 – 8 weeks to

submit their budget

i)A clear annual

budget calendar exists,

is generally adhered to

and allows MDAs

enough time (at least

six weeks from receipt

of budget circular) to

meaningfully

Action plan on implementation of recommendations on budget legal framework completed by June 2013

On track. Studies have been undertaken in view of a specific budget law. A specific budget law might be obsolete in a wider legal review. Recommendations

32

ii) A comprehensive

budget circular and

budget preparation

guidelines are issued

but the MDAs

ceilings are not

always approved by

cabinet before issue

(B)

completes their

detailed estimates on

time

ii) A comprehensive

and clear budget

circular is issued to

MDAs which reflect

ceilings approved by

cabinet or equivalent

prior to the circular

distribution to

MDAs(A)

At least 10 PER Main Dialogue meetings held by June 2016

on legal review have been submitted by AFRITAC.

On track. PER Main dialogue process has started.

Percentage reduction in

deviation of actual expenditure

from approved budget

In 2011, the

percentage of

deviation of actual

recurrent

expenditure MDAs

budget at vote level

compared to

approved budget

but excluding salary

adjustments,

contingency and

debt service was at

13.7%

Actual expenditure

deviated from

budgeted expenditure

by an amount

equivalent to not

more than 10%

Phased training to MDAs, RSs and LGAs Budget Committees on resource prioritization and planning

On track. Training was done to selection of RS and LGAs in 2012 on how to plan and implement.

Quality and timeliness of in-year

budget report (P-24) by 2016

Comparison to

budget is possible

only for main

administrative

headings.

Expenditure is

Classification allows

comparison to budget

but only with some

aggregation.

Expenditure is covered

at both commitment

Mechanism for quality

assurance of

Quarterly Budget

Performance Reports

(level of detail,

At risk: It was agreed to take PEFA study 2009/10 and PEFA methodology paper as starting point for coming discussions.

33

captured either at

commitment or at

payment stage (not

both)

Reports are

prepared quarterly(

Possibly excluding

first quarter), and

issued within 8

weeks of end of

quarter

There are some

concerns about the

accuracy of

information, which

may not always be

highlighted in the

reports, but this

does not

fundamentally

undermine their

basic usefulness (C+)

and payment stages.

Reports are prepared

quarterly and issued

within 6 weeks of end

of quarter

There are some

concerns about the

accuracy, but data

issues are generally

highlighted in the

reports and do not

compromise overall

consistency/usefulness

(B)

timeliness, accuracy,

consistency and

usefulness to decision

makers, as well as for

budget transparency

to citizens)

established by June

2013

Follow up meetings are foreseen.

Output 2.3:

Strengthened

capacity of LGAs

for MTEF

preparation by

2015

Comprehensiveness of

information included in budget

documentation (PI-6)

Currently there no

sufficient

information on LGAs

revenue planning

and budgeting

which is included in

the budget

documentation.

Supportive and

verifiable revenue

data and information

to be included in the

LGAs budget

documentation.

Proposal for budget information to be included in the Budget guideline to be submitted to National Budget Guideline committee by October annually.

Recommendations

To be reviewed.

At risk (Sequence

34

of various studies on LGAs budget allocation formulas reviewed by December, 2012 which will include recommendations to be made by the fiscal decentralization taskforce in LGRPII by June 2014. The M&E framework under LGRPII included performance indicator to measure application of formulae based allocations to actual fund transfers.

Agreement on improvement of

needs to be revised). The revision and full application of LGA budget allocations formulas is a challenging process involving numerous stakeholders (MoF, PMO-RALG, sector ministries, PO-PSM). From the discussions, it was confirmed that PMO-RALG is expected to initiate the process through a consultancy. PMO-RALG would then prepare a Cabinet paper recommending formal approval. It was recognised that ToRs for such study should be prepared urgently in order to achieve PFMRP IV milestone. The ToRs should take into account the intended transition to PBB. Access to funding from the basket for this activity has been delayed.

On track pending above actions.

35

LGAs budget allocation formulas among the Sector Ministries (PMO-RALG, MOF, PO-PSM and Sectors) completed by June, 2013

Various studies in fiscal transfers

and decentralization process in

Tanzania indicates that Budget

allocation to LGAs reflects a more

inequitable distribution of

resources to LGA, and that the

allocation formulae are not fully

applied. There is a need to revisit

all the existing budget allocation

formulae to clearly reflect

equitable allocation of financial

resources by June 2016.

Currently budget

allocation formula

follow, population,

land area and

poverty level,

Budget allocation

formula reflects

resource needs,

distances from service

facilities, special area

diseases, number of

projects to be

implemented, number

of orphans etc.

All LGAs budget allocation formulae reviewed by June, 2014

All reviewed LGA budget allocation formulae applied in the budget preparation during 2014/15 for the FY 15/16 budget.

Monitoring arrangements in place for measuring deviations in actual releases against all formula-based allocations to LGAs for FY 15/16.

All on track pending actions above.

KRA:3 Budget Execution, Accountability and Transparency:

Improved utilization of public resources in a more effective, efficient and transparent manner by June 2016

Outputs Performance

Indicator

Indicator Baseline

2011

Indicator Target

2016

Milestones Comment

36

Output 3.1:

Improved public

procurement

performance by

PEs by 2015

Average level

of compliance

of i) all

procuring

entities (for

follow-up

audits) and ii)

the top 20

procuring

entities with

the (revised)

Procurement

Act 2011

Competition,

value for

money and

controls in

procurement

(PI – 19)

Old target

(63%+75%)/2=68%

i. 66 % of tenders under open tendering process were advertised in fiscal year 2006/2007 (B)

ii. Using less competitive procurement methods is allowed with justification. PPRA audits in 2008/09 show that the great majority of contracts now use the correct methods (B)

iii. A comprehensive complaints mechanism operates, but for unknown reasons the number of complaints has declined (B)

Target will be

based on new set

of indicators +20%

of baseline (new

BL by October

2012)

i) Accurate data on the method used to award public contracts exists and shows that more than 75% of contracts above the threshold are awarded on the basis of open competition(A)

ii) Other less competitive methods when used are justified in accordance with clear regulatory requirements (A)

iii) A process (defined by legislation) for submission and timely resolution of procurement process complaints is operative and subject to oversight of an external body with data on resolution of

Annual PPRA audit results confirm positive trend on a yearly basis

Revised procurement implementation and monitoring tools issued by December 2013

New Public Procurement Act, 2011, Regulations and Tools disseminated to major PEs and other key stakeholders by December 2015

Procurement plans aligned with MDAs, LGAs and parastatal Institution Strategic plans by June 2015

Value for money procurement enhanced through Framework contract in procurement of common use items and services by June 2017

PPRA operational and outreach capacity strengthened by June 2014

On track. Apparently annual audit results indicate positive trend based on compliance and Value for money audits. Final figures due in October.

On track, implementation and monitoring tools to be in place after the on-going new audit report is ready and being approved by the end of 2012.

On track, Procurement Regulation will be out at the end of 2012 and in 2013/14 PPRA will plan for milestones. New Public Procurement Act, not yet in use; it is waiting for regulations to be approved. But, expect to be ready by late 2013.

On track. It has been made mandatory that Public Procurement Plan to be part of Strategic Plan and Budget Plan.

On track. The on-going Audit has conducted Value for Money Audit for 30 PE. The final report of the referred audit will inform on the progress

On track. There is on-going recruitment of staff and providing training to existing staff. Moreover,

37

complaints accessible to public scrutiny (A)

PPRA expects to open new zonal offices and employ up to 141 staff from current 52 staff. The Government has set aside budget to recruit PPRA staff

Increase in

number of PEs

using e-

procurement

system (PMIS)

Currently, 203 PEs are

using PMIS

(Procurement

Management

Information System)

393 PEs will have a

functional PMIS and

pilot e-procurement

system will start

functioning by Nov

2016.

All (393) PEs will have a fully functional PMIS as a reporting tool for procuring entities to report back to PPRA by Nov 2014

e-procurement will start functioning as pilot stage by Nov 2016

On track. PMIS progresses well (PPRA have a plan of providing tender portal, which is within PMIS and it has budget).

On track, the survey has been conducted on how to move online (there are initiatives in place) and e-procurement will be achieved by April, 2013).

Increase in

number of PEs

reached for

procurement

audit

Currently 330 PEs have

already been audited.

In June 2012 all 393

PE’s will be audited,

then beyond F/Y

2012/2013 will be “

Follow-up Audits

(should be repeatedly

process especially on

Top 20 PE’s

393 PEs audited by June 2012

Follow up audit of 100 PEs

to be done annually by

2016

Annual Procurement Performance Evaluation Report prepared and published Annually

Achieved. Done with the exception on newly PE within established District.

On track, with expected new zonal offices and staff easy to make follow up audit.

On track. Annual procurement performance evaluation report will be published on PPRA Journal and Website.

Output 3.2:

Strengthened

public sector

procurement by

June 2015

Number of

Public

procurement

regulations

issued

None( to be established

after baseline study)

% increase in number

of Public procurement

regulations issued

Action plan for

implementing PPA is

developed by December

2012 (Milestones to be

revised after finalization of

the action plan)

On track pending written

actionplan. To implement

the PPA, PPPD will conduct

training with government

procurement service

agents, and information

38

Number of

Skilled

procurement

staff

None( to be established

after baseline study)

% increase in number

of skilled Procurement

personnel in PEs

New public procurement

regulations prepared and

issued by June 2013

Procurement training

needs assessment exercise

completed by June, 2013

[300] procurement staff

trained on public

procurement by June, 2017

as per TNA

Strategy on public

procurement human

will be disseminated,

including on their website

The PPA regulations are on

track. Parliament passed

the law in 2011 and the

minister has prepared the

draft regulations. These are

currently with the Attorney

General’s office for

verification. The Minister

will then finalise the

regulations, present them

to Parliament and they will

become effective. This

could happen any time

now.

A ToR has been written for

a consultant to do the

training needs assessment

exercise. This is on track.

PPRA will conduct the

training of procurement

staff. It was agreed that the

number will be revisited.

Focus on strategy to be

revised to instead focus on

how organizational

structures within

procurement management

units should look.

On track. The staff

database already exists and

has about 2000 people on

39

resource developed and

disseminated by June, 2015

Procurement and supplies

staff database maintained

and updated by December,

2015

it. This is a continuing task

as it must be updated.

On track – target

within reach

Presence of

procurement

policy draft by

June, 2013

PPDs’ capacity

enhanced by

June, 2013

National

procurement

policy and

procurement

law

None

None

None

National procurement

policy developed and

disseminated to

stakeholders

i) Motor vehicle

and office

equipment

acquired

ii) Short training

for 20 members

of PPD staff

conducted

Public Procurement

Act 2011 reviewed

National procurement

policy draft finalized by

June, 2013

Stakeholders’ comments

incorporated by June, 2013

PPDs’ capacity enhanced by

June, 2013

20 members of PPD staff

equipped with skills on

public policy formulation,

implementation and

On track. The national

procurement policy draft

will explain the PPA and

covers central and local

government. A consultant

has been hired from Dar Es

Salaam University.

On track. The consultant

has submitted a framework

paper and after discussion

of this, a first draft for

comments will be

circulated. Comments will

be sought using meetings,

websites and newspapers.

On track. PPD will offer

training on public

procurement policies for

those with relevant

responsibilities. There

currently 18 staff currently

The 2014 onwards targets

for the national

procurement policy are all

on track – targets within

40

synchronised

Stakeholders

acquainted

with the

National

procurement

policy

National

procurement

policy

strategy in

place by

December,

2013

None

None

None

800 Stakeholders

acquainted with the

National procurement

policy

National procurement

policy strategy

implemented

evaluation by June, 2014

National procurement

policy developed and

shared by December, 2014

National procurement

policy strategy developed

and implemented by June

2015

Printing and uploading the

NPP on the website by

June, 2015

National procurement

policy and procurement law

synchronised by June, 2015

Monitoring the

implementation of the

National procurement

policy by June, 2015

Evaluation and feedback of

the implementation of the

National procurement

policy by June, 2016

1000 Stakeholders

acquainted with the

National procurement

Policy by June, 2016

reach.

Output 3.3: Increase in 10 staff with cash 610 staff with cash 600 staff of MDAs and LGAs Trained on cash

On track. 200 have been trained already from the 21

41

Strengthened

capacity of MDAs,

RSs and LGAs in

Cash management

by 2015

number of

staff with

adequate

skills on cash

management

management skills management skill Management using standardized materials by June 30 2014 (Milestones to be reviewed and aligned after the East AFRITAC recommendations on Cash and Banking Arrangement Mission)

regions (now 25). Training modules (in house) developed from Afritac hand out on banking arrangement, credible cash flow,,,. In house training made by AccGen personnel, with support of BoT and Afritac. Recommendations from E-AFRITAC not seen.

Decrease in

the aggregate

number of

bank accounts

operated by

LGAs by 2015.

The aggregate number of

bank accounts operated

by LGA are 4,736 in 2011

3938 bank accounts

will be closed by

December 2013

Six bank accounts operated

by each LGAs by December

2013

Milestone Achieved. Since July 1

st 2012, 6 bank

accounts per LGA are now operated. A substantial reduction of bank accounts will thus be possible during the F/Y 2012/2013 as bank accounts needs to be dormant for at least 6 month before closed.

Output 3.4:

Strengthened

public debt

management

capacity by 2015

Recording and

management

of each cash

balance, debt

and debt

guarantees

(P1-17) by

2016

i) The various databases

containing debt data are

currently in the process

of being merged. Data

quality is considered fair

and minor reconciliation

problems occur. For the

data entered in CS DRMS,

statistical reports are

regularly produced (B)

i) Domestic and

foreign debt records

are complete, updated

and reconciled on a

monthly basis with

data considered of

high integrity.

Comprehensive

management and

statistical reports

(cover debt service,

stock and operations)

are produced at least

quarterly (A).

The agreed actions arising from the Feb. 2012 World Bank debt management report shared with key stakeholders by July 31, 2012 (Milestones to be reviewed)

Delayed. Significant progress has been made. The draft debt management report from WB Debt management mission and action plan on steps towards establishment of Debt management has been shared within GoT to all relevant stakeholders (technical and national debt committees). A formal response to WB is in pipeline and circulation to DPs is awaited. A structure has been worked out and is

42

ii) The balances of several

government bank

accounts in commercial

banks are not

consolidated, though

there is a plan to do so

(D).

iii) Contracting of loans

and issuing guarantees is

approved by Minister of

MOF in line with rules,

but there are no ceilings

(C)

ii) Calculations and

consolidation of most

government cash

balances take place at

least monthly, but the

system used does not

allow consolidation of

bank balances (C).

iii) Central

Government’s

contracting of loans

and issuance of

guarantees are made

within limits for total

debt and total

guarantees (B).

Debt management policy developed and shared by June 2013

Capacity of 50 Public Debt staffs enhanced by June 2014

Review of Government Loans, Guarantees and Grants Act by June 2014

Debt Management department established by June 2016

due for approval in MoF management committee before request is submitted to Public Service Management for approval. Global objective is to have a unified debt office.

All other milestones beyond January 2013 are on track as far as the mission can assess.

Output 3.5:

Improved integrity

and content of

government

financial

statements and

the migration

from IPSAS cash to

IPSAS accrual

accounting for all

government

accounts is

Quality and

timeliness of

annual

financial

statements

(PI-25)

i) Central Government final accounts include revenue, expenditure and bank balances, and since 2007/08 data on most financial assets and liabilities are disclosed with few exceptions. (B)

ii) Financial Statement are submitted for external audit within 6 months of the end of fiscal year. (A)

i) Central Government final accounts disclose full information on revenue, expenditure and bank balances, financial assets and liabilities (A)

ii) Target for 2013 -125 staff and 2014-125

iii) (ii)Financial Statements are

Completed review of the IPSAS guideline issued by PMORALG in 2008/09 to accommodate the recent IPSAS updates by June 2013

Training to the MDAs, RSs and LGAs accounting

On track. The AccGen, DGAM, RSs and LGAs clearly demonstrated, (under AccGen leadership) that work was roughly on track to transition to accrual accounting. This strategy embraces an analysis of strength and weaknesses of the past implementation of IPSAS accrual at local level.

Training has started but

43

progressing in

accordance with

plans.

iii) Cash basis IPSAS has been applied since 2007/08. (B

submitted for external audit within 6 months of the end of fiscal year. (A)

IPSAS applicable to all

financial statement

officers to develop awareness on IPSAS Accrual by 2013

Capacity building to 250 staffs from MDAS and RSs and Embassies to enhance skills in IPSAS accrual by 2014

Public Finance Act No.2001 and Regulations reviewed to address migration to IPSAS accrual by June 2016

Consolidated template of financial statements to include MDAs, Rs, LGAs, Controlled entities &GBEs developed by 2016

details were not available at the review mission date.

On track – target within reach

On track – target within reach

On track

Stage of the

transition

confirmed

against

approved

action plan.

Reports of the

Auditor

General

confirm

improvement

The decision to transition

all government accounts

to full accrual accounting

has been made but

detailed action plan has

not been finalized or

approved.

2009-10 Government

accounts received an

adverse opinion.

Central Government final

accounts include

revenue, expenditure

and bank balances, and

since 2007/08 data on

IPSAS Accrual

migration action plan

has been completed

approved and is in

process of execution.

Implementing

migration plan as

targeted.

Quality and integrity of

government financial

statements is

improved as evidenced

by the reports of the

250 government accountants in MDAs /LGAs trained in IPSAS accrual and accrual modules for Epicor by September 2013

Plan for migration towards IPSAS Accrual accounting is completed by December 2013.

Plan is approved for execution and stakeholder information sessions have been completed by January 2014

All legislative and policy supports decisions have been identified by December 2014

Milestones for the transition have been

On track. Training plans have not been shared but discussions indicated that training would be completed by the target date

On track. Action plan in place.

On track – valid for all subsequent targets within reach.

44

most financial assets and

liabilities are disclosed

with few exceptions. (B)

Financial Statement are

submitted for external

audit within 6 months of

the end of fiscal year. (A)

Cash basis IPSAS has

been applied since

2007/08. (B)

Auditor General

Financial Statements

are submitted for

external audit within 6

months of the end of

fiscal year. (A)

identified and approved Eg Public Finance Act No.2001 and Regulations amendments by October 2014

Plan to integrate all RSs and LGAs operations into the centralized IPSAS accrual architecture is completed and PMO RALG is fully engaged as a stakeholder by December 2014

Output 3.6:

Improved

accountability in

management of

Government

Assets for

supporting

migration to

IPSAS Accrual

Number of

MDAs which

are now

reporting

their financial

position

through IPSAS

Accrual

Number of

MDAs which

have been

valued and

uploaded in

the EPICOR

None

20 MDAs( 28%) have

been valued and

uploaded in EPICOR

% increase of MDAs

reporting their

financial position

through EPICOR asset

management module

by 2016 (Targets to be

set after migration

action plan towards

IPSAS Accrual

Accounting is

completed)

% increase of MDAs

valued and uploaded

in EPICOR by June

2016 (Targets to be

set after migration

plan towards IPSAS

Accrual Accounting is

completed)

Uploading of 16 MDAs in EPICOR by December 2012

Asset Management (tracking) software acquired by March 2013

40 staff (25 regional heads (RSVs) and 15 from HQ)) trained on asset management by December 2013

Asset Management Policy prepared and submitted by June 2015

Valuation of Government assets in 34 MDAs and RSs completed by June 2016

Progress against target reported annually.

On track. Valuation of 16 additional MDAs done (now 36 valued in total),

On track. ToRs drafted. Will depend on access to financial resources at due time.

On track but with risk of being delayed, depending on access to financial resource at due time (not in the PFMRP work plan).

On track. The ToRs for the drafting of the asset policy management have been shared. They are approved at DGAM level, and are circulated among other stakeholders.

On track – see above.

On track. Progress reported.

45

KRA: 4 Budget Control and Oversight:

Improved adherence and enforcing of MDAs and LGAs to financial internal controls, rules, laws, regulations and

audit recommendations by June 2016

Outputs

Performance

Indicator

Indicator Baseline

2009

Indicator Target

2016

Milestones

Comments from Supervision

Mission 2012

Output 4.1: Increased

coverage and quality of

the internal audit

functions by 2016

Percentage

increase in

unqualified

opinion in the

external audit

report for MDAs

and LGAs

54% of MDAs and

65% LGAs obtained

unqualified opinion

in 2009/2010

65% MDAs and 75%

LGAs will get

unqualified opinion in

2015/2016

Operational plan developed and approved by June, 2013

Internal audit manual/guidelines, standards and quality assurance improvement programme, which complies with international standards and best practices, will be in place by June 2013

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

Strengthening of Internal Audit on track. Manuals for LGAs and MDAs have been reviewed by consultants (August 2012) to ensure consistency with the International Practice Framework (IPPF), training has been provided on IPPF and inception report produced for guidelines on quality assurance.

46

Effectiveness of

internal audit (PI-

21)

i) Internal audit function exists in most MDAs, and it is estimated that 20 percent of staff time is allocated to system based reviews and high risk areas (C)

ii) Reports are issued for Most MDAs but these are not copied to NAO (C)

iii) To some degree actions are taken by management on major issues but often with delays (C)

i) Internal audit is operational for all Central and Local government entities, and generally meet professional standards. At least 50%

of staff time

is allocated

to system

based

reviews and

high risk

areas.

ii) Reports

adhere to a

fixed

schedule

and are

distributed

to the

audited

entity,

Ministry of

Finance and

NAO (B)

ii) Action by

Effective internal audit units and audit committees established to all MDAs and LGAs by June 2016

The Pilot stage of Computerised Audit will be finalized by June 2014.

Computerised Audit in place by June 2016.

550 internal auditors and other stakeholders trained in risk management process and risk based audit by June, 2016

Preparatory steps on track. Survey conducted to identify weaknesses of MDAs audit committees (these include members drawn from management teams) including lack of understanding of role of committees, training and charter explaining responsibilities and duties.

Computerised audit on track. Software to audit IFMIS data expected to be acquired next year for piloting in 3 MDAs and 2 LGAs in 2014 (currently IAG audit is manual using hard copy reports submitted by internal auditors). Software for payroll audit (IDEA) already in place and 3 staff trained.

On track –target within reach.

Preparation for training on track. Needs assessment undertaken and training plan developed (July 2012), 20 champions trained by JICA on audit systems (drawing on existing internal audit handbook and process guide). Guidelines on implementation of institutional risk management framework being developed.

47

management on internal audit findings will be taken within one month after issuing a report and should be comprehensive across Central and Local government entities (B)

Number of staff

equipped with

skills on risk-based

audit

100 staff trained in

risk based internal

audit

Technical Audits

conducted for 20

Projects in 2011

550 internal audit

staff are trained in

risk based audit

70 Technical Audit

conducted by 2016

Technical Audits are conducted for 70 Projects by June, 2014

Internal audit unit on track to train internal auditors on risk-based audit. Training has started with management (Directors of policy and planning, HR management, Chief Accountants and Chief Internal auditors) in 16 MDAs to create awareness of risks in the Public Sector. Technical audits carried out for 30 projects.

Output 4.2: Strengthened

External audit functions

by 2016

NAO reaches

AFROSAI-E

Level 3

Level 2

NAO did not reach

at level 3 in 2010 as

planned because of

lacking two criteria.

Out of 10 criteria,

NAO cleared

NAO to reach Level 3

by 2016

Capacity of NAO

audit service

strengthened by 2016

The committee report on needs of legal amendments (existing laws) to contribute towards reaching level 3 submitted to the attorney General and awareness by

Report on track to be submitted to the Attorney General’s Office. An AFROSAI-E team undertook an assessment of NAO`s performance in September 2012, focusing on institutional assessment, performance audits and regular audit. Legal officers have been working on laws which impede

48

Increase in

number of NAO

staff capable of

issuing audit

reports as per

international

technical and

professional

practices

Value for Money

Audits to be

conducted by NAO

8criteria. Other 2

criteria are (1) NAO

staff should not be

Civil Servants, and

(2) Appointment of

CAG by the

Parliament. The

2005 assessment

scored NAO as level

1.

A committee was

formed to conduct

legal review and will

submit a report on

needs of legal

amendments to

reach at level 3.

The committee

members visited

South Africa, Kenya

and Uganda.

Most Auditors are

accommodated in

Auditees premises

80% of Auditors to

have be

accommodated in

own offices

800 Auditors trained

on Risk Based Audit

and 400 in IT audit

Five value for money

audit reports to be

produced each year

by NAO staff without

technical assistance

from external

consultant

800 auditors trained

on International

standards of auditing

and Full adoption of

International audit

standards

December 2012

50% of Auditors to be accommodated in NAO own offices by 2014

300 Auditors trained on Risk Based Audit and 200 in IT audit by 2014

2 Value for Money audit reports to be produced each year by NAO staff without technical assistance from external consultant by 2014

300 Auditors trained on

independence of the NAO with a view to incorporating independence of the NAO into the constitution using Uganda’s constitution as an example. Other issues relate to NAOs budget, recruitment and salary structure.

Accommodation is on track but discussions revealed that this should be kept under review with increasing staff numbers. CAG is renting offices in 11 of the 25 regions and fewer funds are being received for construction than allocated.

Value for Money audit on track. More than 5 performance audits p.a. are being carried out using internal coaching, providing a base to build on.

Training milestones on track. Champion group created – details below.

Champion Group created and carrying out training. Training development done for 12 peop1e within office plus 3 seconded from other Government Institutions (TRA and TTCL). Further details on

49

staff with

minimum

technical support

by external

Consultant

Adoption and

application of

International

auditing Standards

in all audit

assignments

100 Auditors trained

on Risk Based Audit

One VFM report is

produced by NAO

staff each year

without technical

assistance by

external Consultant

200 auditors trained

on International

standards on

auditing (ISSAI,

IPSAS.ISSAI,IFRS,ISA)

international standards of auditing and full adoption of International Audit Standards by 2014

training below.

Number of MDAs.

LGAs and

Parastatals

reached for

financial audit

All 86 MDA, 134

LGAs and about 122

Parastatals were

covered by Financial

Audits.

All MDA, LGAs and

Parastatals are

covered by Financial

Audits by 2016

Closing of books of accounts for Parastatals harmonized and audit modalities agreed by 2014.

On track – target within reach. The Treasury Registrar is in charge requiring follow up with TR. CAG will also follow up. NAO will have a key role in determining which institutions are true parastatals. This is made complicated by privatization of state owned companies and GoT majority shareholdings.

Scope, nature and

follow-up of

external audit (PI-

i) In the last three years, the audit

i) Audit reports are submitted to the President within 9 months (per the

Audit methodology in line with ISSAIs guidelines

Alignment of audit methodology is on track and progressing well, with guidelines already in place.

50

26) by 2016

report, including consolidated financial statements of government, was presented to the legislature six months after the receipt of financial statements (B)

ii) No electronic system currently exists to consolidate and easily access data regarding outstanding audit findings and recommendations, including their age.

Public Audit Act) of after the end of the financial year.

ii) Fully operational and easily accessible database to support Government’s efforts to reduce outstanding matter(findings and recommendations) .

adopted by June 2013

Scoping study to ascertain the parameters of the outstanding matters database is completed by November 2012

Establish a database that will separate findings (monetary and non monetary) and recommendations including by age, and record follow up actions (i,e matters closing) by December 2013.

On track. The scoping study is on-going though details of exact scope need to be clarified.

On track – target within reach. Creation of database is pending completion of scoping study (see above).

Increased

application of ICT

in auditing and

connectivity (by

Wide Area

Network ) of NAO

offices

20 staff trained on

ICT application in

auditing

NAO offices are not

connected

One TeamMate

module (Electronic

600 Auditors trained

on Audit

Commanding

Language (ACL) and

other audit based

software

NAO Headquarters is

connected by all 21

regional offices using

200 Auditors trained on audit commanding language (ACL) and other audit based software by 2014

NAO Headquarter

Training on track. NAO has carried out a training assessment and developed a training policy and strategy to be shared with DPs. A large amount of basket resources is spent on training and the importance of VfM is recognised. A training impact assessment will be carried out by end-2012 to be shared with DPs. In the longer term NAO plans to establish its own training institute.

NAO HQ connections on track, Several already made using

51

working papers) is

applied in auditing

WAN by 2016

All five Teammate

modules applied in

auditing by 2016

is connected to 10 Regional offices using WAN by 2014

Two of five Team Mate modules applied in auditing by October 2014

fiber optics

Application of Team Mate modules on track. Action plan in place to activate four modules with support from NAO Development project and PFMRP.

Output 4.3: Improved

transparency on audit

reports (central, local and

parastatal levels) to

strengthen scrutiny and

accountability.

“Citizen Audit

Report”(simplified

audit reports

accessible by the

general public) are

published

4 Consolidated audit

reports (central,

local, POABs and

VfM/Performance)

are publicly

available on the

NAO website after

tabling.

NAO set up a booth

at Trade Fair (Saba

Saba) and Public

service week where

general audit

reports are

distributed to

visitors.

All General audit

reports are

accompanied by a

‘citizens audit report’

(short summary of

the key audit findings

and

recommendations, in

both Swahili and

English) and are

available in a timely

manner (within 4

weeks after tabling)

on the NAO website

and at NAO offices all

over the country by

2016.

Citizen audit reports available for the 4 General audit reports by June 2013 and onwards on annual basis.

On track. Haki Elimu and TAWEZA are writing citizen audit reports. TAWEZA maintains the NAO’s website for free. A link to the citizens report can be put on NAO’s website

Output 4.4: Improved

performance of

parastatals by June 2016.

Increase in

number of

Parastatals

implementing

2 Parastatals (TRL &

TPA) were

implementing

Performance

All Parastatals will be

implementing

Performance

Contracts by June

Ten Pilot Parastatals Signed Performance contracts with TR

On track. All “commercial enterprises”, of which there are more than 50, are to have performance contracts. The ten pilot parastatals have

52

performance

contracts by June

2016

contract in 2009 2016 by June 2013 been selected based on turnover, size, strategic importance etc. (further details to be made available). Contracts will include performance targets to be measured by the TR, though consistency is needed with parent MDAs. Performance incentives are provided for in the 2010 TR Act e.g. seniors can be removed to deal with under-performance while bonuses can be made where targets are surpassed.

Oversight of

aggregate fiscal

risk from other

public sector

entities (PI-9) by

2016

There is weak

Monitoring of

Parastatals as their

final number is still

to be established

and their

consolidated

overview is missing

(PI-9: D)

All Parastatals will

submit fiscal reports

including audited

account to TR and

consolidates overall

fiscal risk issues into

an Annual TR

Financial Statements

(B)

Database on Parastatals set up and functioning by December 2014

Monitoring framework for Parastatals set up by June 2014

On track. Technical and user-friendliness issues discussed last year have been resolved. Data is currently being entered into TRIMs (Treasury Registrar Information System). The system will be deemed fully functional once it is able to issue reports, now expected by the end of current FY.

On track. Establishment of monitoring framework is reliant on the enactment on the new TR Bill. Given the timeframe for the Bill there is optimism that the framework will be set up by June 2014.

Increase

compliance rate

on TR’s Act by

Parastatals by

Compliance rate on

TR’s Act by

Parastatals is below

70% in 2010/11

Compliance rate on

TR’s Act will be 100%

by June 2016

Mechanism for measuring Parastatals’ compliance rate developed by June 2014

On track. Performance is to be based on accounts tables and whether parastatals comply with circulars and directives issued by the TR, which also conducts management audits.

53

June 2016 The new TR Bill includes clauses on measuring compliance rates. Optimism that the mechanism to monitor compliance rates will be set up by the deadline

Output 4.5: Strengthened

capacity of oversight

functions of

Parliamentary Accounts

Committee in Tanzania

Mainland

Number of PAC

members trained

Evidence of PAC

members making

follow-up on financial

audit

recommendations in

the respective MDAs

and LGA

Capacity building interventions to PACs conducted

Requires revision. Discussions confirmed that support for Parliamentary Committees has lagged and requires early attention during phase 4. Follow up is needed to identify and agree an appropriate action plan for PFMRP support to parliamentary committees. First steps in this process have begun but support needs to be defined and coordinated with other stand-alone programs.

KRA:5 Change Management and Programme Management:

Improved management practices with increased accountability and leadership to better manage performance of

PFMRP:

Outputs

P-Indicator

Indicator Baseline 2011

Indicator -Target

Milestone

Comments from

Supervision Mission

2012

Output 5.1: Coordinate Interface central MDA /LGA IFMIS systems DFISM with overarching ICT mapping At Risk as of Sept.

54

Integration, interfacing

and rationalization of

Government financial

systems.

and local

Government

financial

management

system and tools

are not harmonized and or

integrated and are not

being centrally managed.

Stand alone software

continues to be acquired

and implemented.

technical control for all

government IFMIS

systems is fully staffed

and operational.

ICT Infrastructure

capable of supporting

approved systems

architecture is in place

All Government

financial systems (

SBAS, PlanRep, RIMKU,

IFMS) have been

integrated and

interfaced and financial

data is smooth

exchanged between

systems.

162 LGAs, 25 RSs and 3

institutions under PMO

RALG connected with

IFMIS by Dec.2015

exercise showing location and owners of all and peri-financial software commenced with inception report published by December 2012. (refer PAF 2012)

Stakeholder coordination meetings held to gather input and agree on cross functional responsibilities for financial systems Planning held on by December, 2012

Sequenced, prioritized and costed action plan to bring all GoT financial and peri-financial software under one common Government financial systems

25/12. The selection of the consultant for the mapping study is reportedly in the final stages however it remains to be seen if a jointly agreed / approved inception report can be finished by the October 2012 target date.

At Risk. The above risk could potentially delay the other key elements in this activity chain starting with the stakeholder collaboration meetings scheduled to occur in December. The PFM RP component managers and other impacted agencies mentioned the lack of consultation on this process as a matter of concern.

These milestones are considered at risk due to delay on the completion of the study. Discussions suggest that planning for activities beyond the mapping process have not been

55

architecture with supporting technical, infrastructure and management structures completed and approved by the GoT by June, 2013

Integration/ Interfacing plan is engaged and series of planned actions are being executed and completed by October, 2015

considered at this time. This activity line is being led by the DFMIS and progress towards the December 2012 and subsequent indicators will be followed through the KRA 5 Technical Working Group.

On track – target within reach.

133 LGAs are connected to

the IFMS

167 LGAs, 25 RSs and 3

institutions will be

connected to the IFMS

IFMS infrastructure installed to new 34 LGAs, RSs and PMORALG institutions and connected to central server at Dodoma and MoF by June 2013

On track. DFMIS indicate that progress towards this objective is on track and the June 2013 target should be achieved. Note that all LGAs and RSs are connected to the IFMIS system through the Dodoma server network

Evidence of

analytical reports

generated from

the system

available at MDAs

and LGAs level

133 LGAs, 21 RSs and 3

PMORALG institutions

could produce.

Operation Reports, and

Management Reports

162 LGAs, 25 RSs and 3

Institutions will be able

to produce;

Operation Reports

Management

MoF IFMS linked to PMO-RALG IFMS to the immediate capture of the Approved Budget and all Exchequer transfers to RSs

On track- DFMIS and PMO-RLG indicate that the June 2013 target should be achieved.

56

Reports

Final account reports (Financial Statements), and

Other reports like Council financial and development report s (CFR & CDR), Mkukuta strategies implementation report by target, etc.

and LGAs respectively by June 2013.

Completed capacity building to key users of IFMS from all LGAs, RS and PMORALG institutions by June 2013.

Audit of IFMIs in LGAs conducted by June 2015

On track – target within reach but needs attention.

On track – target within reach

Output 5.2: Utilization of

EPICOR modules

Increased from seven to

ten

Upgraded version

of EPICOR with ten

modules in-place.

The new modules

are:

Multi – Site Management.

Replication Server License.

Advanced Financial Report Designer

EPICOR module are not

fully utilized

Upgraded EPICOR with

ten modules in-place

EPICOR system upgrade completed by December 2014

Achieved . Subsequent upgrades may be required as software enhancements become available. Output needs to be reviewed. Soft tech DFMIS and AccGen suggest that there is some confusion about the number of EPICOR modules that are available and that will be brought into use. At present 6 modules are part of the package paid for but not all modules are fully utilised. Revision of target should be done by

57

ACGEN staff capacity enhanced by December 2014

Training for IFMS end users on the upgraded modules conducted by December 2014.

EPICOR is able to provide real-time information to all LGAs on flow of funds by July 2015

mid term review and against a longer term vision of Epicor/ICT roll out.

On track. Training ongoing.

On track. MDA Training on new version of Epicor is planned for completion before June 2013. Training ongoing. But specific plans are currently not in place.

On track. According to PMO-RLG and meeting with Softech this target can be met at an earlier stage.

Output 5.3: All software

development and module

upgrades are coordinated

with the overarching

plans for ICT integration.

Number of

systems that are

linked into an

IFMIS platform

and available for

common use

ICT Planning is single

purpose and not

coordinated with other

harmonization activities

All software

development is

integrated within a fully

rationalized ICT

architecture.

DFISM is operationalized and controls are put in place to manage software acquisition and development by December, 2012.

DFISM staff capacity enhanced by June, 2015.

Achieved. The DFMIS dept within MoF has been operationalised with the mandate to control and manage all financial software within the GoT. Activities are being guided by a 3 year operational plan

On track. 16 DFMIS staff are receiving

58

training.

Output 5.4: Improved

communication and

public access to key fiscal

information to

stakeholders

Public access to

key fiscal

information:

1. Annual budget

documentation,

2. In-year budget

execution reports,

3. Year-end

financial

statements,

4. External audit

reports,

5. Contract

awards,

6. Resources

available to

primary service

delivery units (PI-

10)

The government makes

available to the public 5 out

of 6 types of information,

but two of them are not

complete: in-year budget

execution reports and

contract awards. Resources

available to primary service

providers are not published

(A)

Special surveys were

undertaken within the last

three years, but their

results and methodologies

used have not been seen

(D)

The government makes

available to the public 5

out of 6 types of

information- (A)

Special surveys

undertaken within the

last 3 years have

demonstrated the level

of resources received in

cash and in kind by

either primary schools

or primary health

clinics covering a

significant part of the

country OR by primary

service delivery units at

local community level

in several other sectors

(C)

The Approved National Budget is published on Ministry of Finance website by September each year.

Publish Citizens Budget by November each year.

A Year-End Report (budget out turn) comparing the actual budget execution to the enacted budget is published on Ministry of Finance website by October each year.

MoF Communication Strategy developed and implemented by June 2013

Fiscal Information and Budget Transparency Publication Cycle developed and implemented by June 2014

Achieved Budget published in September.

On track. Draft in progress.

On track but approaching target date.

On track. Communications dept. is implicated in this output however they have no control over source data and policy support.

On track

59

MoF website timely updated by June 2017

On track - see above.

Output 5.5: Coordination

and Standardization of

PFM Training Achieved.

Number of trained

staff in PFM

Quality of service

delivery from

trained staff.

None

None

........... of staff trained

Presence of trained

staff providing quality

service.

Training mapping exercise completed by December 2012

Capacity building Plan developed and result measurement framework shared with key Stakeholders by June 2013

Two tracer studies conducted to measure impact of training and documented by

At risk. The HR Department within MoF indicate that work on the Terms of reference for this study is in process. It will be combined with a training needs assessment and the plan is expected to be finalized prior to the target date. A copy of the plan will be provided. Follow up meeting of the KRA 5 Technical working group should take place in November 2012 to check on progress.

Subsequently at risk.

On track – target within reach

60

June 2014 and June 2016

Output 5.6: PFMRP

component

Managers are being

guided by detailed multi-

year operating plans.

Program

components are

completed in

sequence based

on priority and the

reform is keeping

pace with the

agreed milestones

PFMRP component

activities are not always

derived from and/or

described within the

context of detailed

component operating plan

Relevance, sequence and

costs are difficult to assess

PFM activities are

governed by multi-year

component operating

plans that provide

context for relevance,

sequence and cost.

All activities presented for inclusion in PFMRP annual work plan are presented within the context of a detailed, multi year operating plans by June 2013

At risk. Not known if component managers are guided by operating plans. This output and indicators requires further definition to move beyond “in principle” status.

Output 5.7: PFM activities

are effectively planned

and implemented

Component

managers have

capacity to

develop and

manage strategic

operational plans.

Component

managers have

developed

capacity in the use

RBM methodology

Component managers have

not had the necessary level

of capacity development in

strategic planning and

results based management

150 staff from KRAs

trained on change

management and

strategic planning

.

60 staff trained on RBM

methods

Capacity building Plan developed and shared with key Stakeholders by December by 2012

Training on Change Management and Strategic Planning completed by December by 2013

Results Based

At risk. The HR department within MoF indicate that this will be done. Technical working Group follow up in November is recommended to ensure that the plan is developing on schedule.

On track. Planning Divisions role in coordinating this and the subsequent execution of SP and RBM training needs to be more closely defined.

61

Management training has been delivered to 60 PFM RP Component managers by June 2013

Same comment as above

Output 5.8: Effective

coordination of activities

and support provided to

the program

implementers

Secretariat

support is

facilitating

program

performance.

Under resourced

secretariat with short term

contract

Functional secretariat

providing a range of

needs based program

supports

Secretariat procurement process completed by July 2012

Secretariat work plan is completed and approved by JSC by December 2012.

PFMRP

Delayed. Target not achieved. The Secretariat recruitment is ongoing as at Sept. 2012. Contracting and start dates are not known at this time. Only 4 out of 6 positions received qualified applicants which may necessitate re advertisement for PFM and M7E specialists.

At risk as the secretariat is not recruited yet. Full orientation and completion of the secretariat Work Plan should be given priority as soon as hiring of the coordinator has been completed. Follow up through KRA 5 TWG will be required in

62

coordination secretariat facilitated annually.

October.

At risk

Output 5.9: PFM Program

oversight and review is

being guided by clearly

defined Milestones

derived from an agreed

M&E framework,

Performance

expectations for

each component

are clearly defined

and understood

by all

stakeholders.

Performance expectations

are not clear and the

absence of context makes

qualitative aspects of

program oversight difficult.

Approved M&E

framework sets out

clear and relevant

performance

expectations

Annual review and amendment of the M&E framework to ensure ongoing congruence and relevance annually starting November 2012.

On track. It has been agreed that the M&E will be opened for amendment and adjustment. Recommendations for change should come by way of the TWGs under each KRA and should have unanimous support. Given the short time since start up no amendments will be considered in the 2012 review

Output 5.10: All major

PFM reforms have been

coordinated with and

informed by the relevant

government and DP

stakeholder groups

Stakeholders have

knowledge of

reforms and

change initiatives

that will impact on

them or their units

and are

collaborating or

supporting

implementation.

Stakeholders have

adequate time to

Coordination of major

reforms with stakeholder

groups is not prioritized.

Significant information and

capacity gaps exist.

Major PFM reforms are

all supported by a

communication /

collaboration strategy

which ensures that all

stakeholders have the

opportunity to provide

input and to receive

necessary information

in time to adapt to the

change.

PFM information session completed to disseminated results of: ICT mapping exercise, ICT Harmonization Integration Plan by March 2013

At risk. The procurement of the consultants has been delayed. From TWG discussions it appears that this activity is not at the planning stage. There appears to be a clear overlap of ownership between DFMIS and the Planning Division. The MoF communications unit and the PFMRP Secretariat will likely be implicated in

63

develop the

necessary

adaptive capacity.

Change resistance

is minimized

IAG action plan, AcGEN’s Plan to transition to Accrual Accounting

Dec.31st each year Minimum of one PFM reform information day conducted for CSOs , DPs and GoT during Public Service day annually

designing and coordinating the sessions.

At risk. Nothing firm has been planned for this activity for 2012 or 2013.

On track but could be at significant risk if planning does not start immediately. Agreement to participate and provide information on their plans will need to negotiated with the sponsoring agency well in advance of the session date. Support may be required in terms of material preparation etc. KRA 5 TWG follow up is recommended for Oct. Nov. 2012.

Output 5.11: PFMRP

implemented efficiently

and effectively through

result based management

approach.

Comprehensive

annual work plan

and budget

Progress report on

place on 15th day

after end of

Approved by August

annually

Progress report in place

Work plans and

budgets are approve by

June annually

Funds are released by

July 1/annually

PFMRP implemented according to annual work plan and milestones are being met

On track. The Supervision mission for 2012 is on track however some PAF KPA activities are behind schedule. While the primary owner of this output and activities is the Planning Division there is clearly a

64

quarter

Strong and

effective dialogue

structure

Number of

coordinated

dialogue meeting

Weak dialogue structure

6 meeting

Periodic report

prepared quarterly

Presence of strong and

effective dialogue

structure as per MoU.

Working Group and

Joint Steering

Committee meetings

are attended by KRAs

decision makers

KRA teams are meeting

monthly schedule.

Donor representatives

are well informed on

reform initiatives.

Annual supervision mission are conducted by Sept 30 of each year commencing 2012. Independent program evaluations are completed in 2014

Dialogue structures are working as evidenced by combined DP/GoT Survey results (Survey 1-March 2013/ survey 2 – March 2015for Effective program implementation Improved.

Surveys to ensure that teams (KRA Teams and JSC members)are actually working completed, March 2013, March 2015 and results informed to JSC for action

shared responsibility with all participating components in terms or producing timely information and reports.

On track.

On track. The PFM DPs will share responsibility for ensuring that the TWG dialogues are effectively maintained and produce mutually beneficial yields for the participants within the framework of PFM RP.

On track. The dialogue structure / survey activities should feature prominently in the PFM secretariat’s work plan.

65

Output 5.12: National

systems and processes for

intergovernmental

transfers to LGAs

Streamlined and

rationalized

System and

processes are

documented with

target timelines

for each process

step.

Share of Non-

salary (OC+DEV)

funds released to

RSs and LGAs by

end Q3, as

percentage of the

No overall view of systems

and processes for

intergovernmental

transfers. Flow of funds and

information on the same is

not in parallel and tied to

one system.

In 2010 it took 7days for

funds to reach MDAs and

RSs (after receipt of

complete set of fund

request).

42.1% of resources

available to RSs and LGAs at

Q3

Effectiveness and

efficiency of the system

has increased

X XX Number of key

actions implemented

(Target to be set after

mapping exercise)

Decreased number of

days of fund transfer

time to RSs LGAs and

MDAs

70% of resources

TORs completed by July 2012.

Mapping commences September 2012.

Review and mapping of the systems and processes for intergovernmental transfers initiated with inception report finalised by October 2012

Comprehensive and sequenced action plan on a recommendation of the mapping exercises on the intergovernmental transfers finalized by June 2013.

Reports to be produced annually

Achieved. This activity line is being led by the Planning Division and progress towards the December 2012 and subsequent indicators will be followed through the KRA 5 Technical Working Group.

Delayed as at September. The selection of the consultant for the mapping study is reportedly in the final stages.

At risk based on the delays in completing the recruitment.

At risk. Discussions suggest that planning for activities beyond the mapping process have not been considered at this time

Delayed and Not Achieved. This is a

66

Resources

budgeted and

available

(OC+DEV) for the

year

available to RSs and

LGAs at Q3by 2014

by end September.

PAF 2012 OI. Reports were not available as at end September 2012.

Output 5.15:

Strengthened Public

Financial Management

Reforms in Zanzibar by

2016

Milestones developed and agreed after discussion with Zanzibar and thereafter decide on the support by September 2012

Zanzibar PFMRP Strategy developed by June 2014

Delayed. Discussions with Zanzibar are planned to take place over the next two months. The intent is to identify a mutually acceptable and coordinated entry point for PFM RP to support PFM reform in Zanzibar.

On track. Target still within reach.

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ANNEX B: ToRs of the PFMRP Joint Supervision Mission 2012

Background

The Public Financial Management Reform Programme (PFMRP) Phase III was developed and launched

in November 2008. It came to an end in June 2012. Implementation of a follow-on phase, PFMRP Phase IV, commenced on the 1st July 2012 and will run for five years.

Each year, GoT and DPs have agreed to undertake a Supervision Mission to assess progress on PFM reforms against its objectives. To date, Supervision Missions have been held in both September 2010 and 2011.

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).

Objectives and Scope of the Mission

The 2012 PFMRP Supervision mission has the following objectives, noting that there is overlap between them:

1) To assess and jointly agree progress against the General Budget Support Performance Assessment Framework (GBS PAF) for underlying processes (UP), Key Policy Actions(KPAs) and outcome indicators(OI) that are PFM related (see PAF at Annex A).

2) To assess and agree overall progress and results from PFMRP Phase III to enable DPs to complete Project Completion Reports. This will include a particular focus on progress since the last Supervision Mission in September 2011.

3) To assess and agree progress in the implementation of Phase IV so far against its agreed M & E framework.

4) If necessary, to propose possible adjustments to the M & E framework and the Operations Manual in order to keep these documents current and relevant going forward.

5) To formalize the drafting of the next PEFA ToRs - a PEFA mission has been agreed to take place in 2013 for an assessment on the 2011/2012 FY.

The review will be carried out through interviews with Key Result Area (KRA) and Component Managers, beneficiaries (for example, PMORALG, POPSM, MDAs, LGAs and Zanzibar) and other key stakeholders (for example, BoT). There will also be a desk review of key documents.

In due time before the mission, and during the mission as needed, GoT will provide the review team with supporting documents for review. These should highlight both

68

achievements made and challenges faced. In due time before the mission, GoT will also provide a tentative schedule of meetings.

Duration and Phasing

The mission will take place from the 17th – 28th September 2012 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 at which the team would share its initial findings will be held in the second week of the mission. A draft aide-memoire will be completed before the end of the mission and discussed at a wrap up meeting. The final Aide Memoire will be finalized in sufficient time for the GBS Troika Plus pre-GBS Review preparatory meeting with Permanent Secretaries and DPs.

Review Teams

The aggregated Review Team will be composed of representatives from GoT and DPs. It will be co-led by DPS-PFM MoF and DP Co-Chair-Canada, 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 Aide Memoire. If necessary, additional consultants may provide support throughout the Mission. This will be confirmed before the start of the Mission.

Reporting

As noted above, the aggregated Review Team will share its initial findings before the end of the Mission. A draft aide-memoire (maximum 30 pages plus supporting annexes) that meets the objectives of the Mission will also be completed before the end of the Mission.

The final Aide Memoire will be finalized in sufficient time for the GBS Troika Plus pre-GBS Review preparatory meeting with Permanent Secretaries and DPs.

Documents to be consulted/Information required (but not limited to)

1. All PFMRP IV Core Documents including the Strategy, M&E Framework, Operations Manual and 5-Year Work Plan and Budget.

2. All core PFMRP III Documents, including the Strategy and M & E Framework. 3. GBS PAF and Progress Reports 4. Agreed 2012 assessment of PFM Underlying process and referenced documents

therein 5. Supervision Mission Report 2011 6. NAO audit reports – (as posted on the NAO website a special follow up of the

performance report of IFMS should be provided) 7. Tanzania PEFA 2009 report 8. Internal audit report (sample) 9. Treasury memorandum and action plan (response to audit queries)

69

10. Budget execution reports (detailed and summary) 11. Means of verification as identified in matrix on PFM underlying process 12. PFMRP Phase IV strategic documents 13. PEFA documents (Methodology, best practice)

ANNEX A: Budget Support Performance Assessment Framework

ANNEX B: Review Teams in line with Objectives and PFMRP IV KRAs

Stakeholders1 (Note: May be subject to change)

Overall leads GoT lead: DPS PFM DP lead: Canada GoT’s PFMRP and PFM DPG secretariat on support KRA 1 GoT lead: CPAD DP lead/team: Denmark (with support from Belgium) KRA 2 GoT lead: CB DP lead/team: Sweden (with support from Belgium, Ireland and Germany) KRA 3 GoT lead: AccGen DP lead/team: EU (with support from Belgium and Canada) KRA 4 GoT lead: IAG DP lead/team: DFID (with support from AfDB, Germany, Japan and Ireland) KRA 5 GoT lead: DPD DP lead/team: Canada (with support from Belgium, EU and Sweden). ANNEX C: Meeting schedule (To be produced at later stage)

1 IMF East Afritac to back stop on relevant objectives and KRAs

70

ANNEX C: Mission Participation from GoT (not exhaustive)

PFMRP JOINT SUPERVISION MISSION SEPTEMBER 2012-PARTICIPANTS

S/NO FULL NAME INSTITUTION TITLE/DEPARTMENT

1 R.M. Khijjah MOF PST

2 S.B. Likwelile MOF DPSPFM

3 B.A. Shallanda MOF CPAD

4 Dr. Frederick Mwakibinga MOF CPPPD

5 Shogholo .C. Msangi MOF ACP/Fiscal Policy

6 Augustine Ollal MOF ACP/Macro Policy

7 J.M. Cheyo MOF ACB/ Wage Bill

8 P.M. Mponzi MOF ACB/ Budget Techniques

9 J. Mwilima MOF ACB/ RSs and LGAs

10 Adam .A.Msumule MOF Acting ACB/ Expenditure Tracking

11 D.R. Makani MOF DAHRM

12 Aziz Kifile MOF Ass. ACGEN/ System

13 I. Kasekwa MOF Ass ACGEN/ Public Debt

14 Victus Paul MOF Ass. ACGEN/ LGAs

15 Sixbert H.Q MOF Ass. Director/ Govt Asset Mgmt

16 Bunare Daniel MOF ACPPD/ Policy Development

17 Alex John MOF ACPPD/ Capacity Development

18 Fatima S. Kiongosya MOF Director for Planning Division-MoF

19 Juma S. Maguru MOF Ass. Director/ MEPR

20 S.W. Mpembe MOF Ass. IAG/B&P

21 Wenceslaus Sobayi MOF Govt Asset Management Division

22 Mgonya Benedicto MOF

23 Lambo Mayenga MOF External Finance Division

24 Geofrey Mponda MOF SAO/ AHRM

25 Mohamed Bwanga MOF TR

26 Vicky Jengo MOF IAGD

27 Anthony Kibopile MOF Policy Analysis Division

28 Ibrahim .K. Liguo MOF Planning Division

29 Siraji Majura MOF Policy Analysis Division

30 F.Makama MOF Govt Budget Division

31 I. Chuwa MOF Govt Budget Division

32 P.E. Sulley MOF Govt Budget Division

33 Emmanuel Tutuba MOF Govt Budget Division

34 Ezekiel .L. Mpanda MOF Govt Budget Division

35 George Kanyama MOF Govt Asset Management Division

36 Buji Emmanuel MOF Planning Division

37 Elisaraweki Macha MOF Planning Division

38 Ernest Laiton MOF Planning Division

39 Eva Valerian MOF Government Communication Unit

71

40 Farida Mtatula MOF TR

41 Frank Mtosho MOF PA/PST

42 Patrick Robert Gamara MOF TR

43 Alex Mwakisu MOF External Finance Division

44 Alice Matembele MOF External Finance Division

45 Moris Ngaka MOF ACGEN Department

46 Simeon Maingu MOF ACGEN Department

47 B. Lyamuya MOF ACGEN Department

48 Chogoro Rodney MOF ACGEN Department

49 A. Dede MOF SAO/ AHRM

50 Harry M Kitillya TRA Commisioner General

51 Tonedeus .K. Muganyizi TRA Directorfor Research and Policy

52 Mary Maganga TRA P&M Programme Manager

53 Dr. R. Mlinga PPRA CEO

54 Longinus Rutasitara Planning Commision Deputy Executive Secretary

55 Omary H. Juma Planning Commision Principal Economist

56 Emmanuel Mahinga PMORALG Ag. DICT

57 Shomari Mukhandi PMORALG ADLG(F)

58 Maganga M.W.F PMORALG Principal Accountant

59 Dennis Mbilinyi PMORALG FMO

60 Khery Mlonja PMORALG Accountant

61 Ismail Y Chami PMORALG Accountant

62 Lucas .G. Mrema PMORALG Accountant

63 Pendo Mangali PMORALG FMO

64 Elisa Rwamiago PMORALG FMO

65 Joseph .F. Masanja PMORALG Principal Accountant

66 Stella Stewart PMORALG FMO

67 Eng.Michael J. Mrema KIBAHA DISTRICT

68 Obadiya Malima KIBAHA DISTRICT

69 Ikombo Jokatani KIBAHA DISTRICT

70 Amora Kileto KIBAHA DISTRICT

71 Sailanga Samwel BAGAMOYO DISTRICT

72 Gideus Nyangitwa BAGAMOYO DISTRICT

73 Felista Masamba BAGAMOYO DISTRICT

74 Issack Mwang'onda TEMEKE MINICIPAL Municipal Internal Auditor (MIA)

75 Linus Linda TEMEKE MINICIPAL Expenditure Accountant

76 Mashaka Kipande TEMEKE MINICIPAL PMU

77 Eric Kilangwa TEMEKE MINICIPAL MPSO

72

78 Stephen Mulisa TEMEKE MINICIPAL MRA

79 Saidi Kaguzi TEMEKE MINICIPAL Ag. Treasurer

80 Salum Mwamfula MKURANGA DISTRICT Ag. DPLO

81 Kombo H. Juma MKURANGA DISTRICT Accountant

82 Hosea Kibakaya MKURANGA DISTRICT District Internal Auditor (DIA)

83 Athuman Kingu MKURANGA DISTRICT Expenditure Accountant

84 Bernard Lubogo Ministry of Natural Resources

85 Lugaganya J.S

Ministry of Natural Resources

ADME Policy and Planning

86 Mugure Wambura

Ministry of Natural Resources

Economist Policy and Planning

87 Stephen E. Msemo

Ministry of Natural Resources Senior Beekeeping Officer

88 Martha Delphinus

Ministry of Natural Resources Accountant - Finance and Accounts

89 Edrick Killenga

Ministry of Natural Resources

Senior Accountant - Finance and Accounts

90 Captain Minjawa

Ministry of Natural Resources Principle Game Officer - Wildlife Division

91 Daniel W. Gumbo

Ministry of Natural Resources Game Warden - Wildlife Division

ANNEX D: Mission Participants From Development Partners

Name Organisation

1 Godfrey Kaijage AfDB

2 Gauthier De Woelmont BTC

3 Jim Halliday (Co-Chair) CIDA

4 Sandra Hadler DANIDA Consultant

5 Signe S. Winding Denmark

6 Kerry Nelson (Co-chair) DFID

7 Nick Highton DFID

8 Katherine Newall DFID

9 Guillaume Barraut EU-Delegation

10 Oliver Coupleux EU-Delegation

11 Fenohasina Maret Irish Aid

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12 Aran Corrigan Irish Aid

13 Joseph Nyamboha JICA

14 Janne Rajpar KFW

15 Olav Lundstol Norway

16 Johan Kiessling Sweden

17 Niels Knudsen UNDP

18 Denis Biseko WB

19 Chiara Bronchi WB

20 Emanuel Mgnasi WB

21 Hija Balozi AfDB On Support

22 Kalle Hellman DP PFM secretariat (EU funded)

23 Mari Martinsen CIDA Consultant

24 Guy Andersson IMF E-AFRITAC

25 Tawfik Ramtoolah IMF E-AFRITAC

26 Mr. Onesmus Ayaya East AFRITAC

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ANNEX E: Final meeting schedule

Final Timetable for PFMRP Joint Supervision Mission 17 – 28 September 2012

Time and status

Issues For Discussion Meeting Location

Meeting

with- GOT

Review Team- DPs

Monday - 17/09/2012

14.00-15.30

Done

Opening meeting, Overview of mission

All All (see key for DP KRA teams last). () indicates

interests from other KRA DP teams

Tuesday - 18/09/2012

09.00-11.00

Done

Program based budgeting, Planning and budgeting tools including MTEF, budget legal framework, budget calendar, budget transparency, LGA formula

CB DP KRA team 2:

Germany, Ireland,

Sweden, Belgium, WB

09.00-11.00

Done

Internal Audit capacity building and mandate, relations to other accountability institutions (NAO and PPRA), follow up of audit matters,

IAG Office, Sukari House, 5th

floor

IAG DP KRA 4 team: AfDB, Belgium, Denmark, UK/DFID, EU-Delegation (support), Germany, Ireland, Japan, WB Institutional division of labor: NAO: KFW, AfDB, Denmark PPRA: Japan/AfDB IAG: Japan/IAG Parliament: DFID, Ireland

75

Time and status

Issues For Discussion Meeting Location

Meeting

with- GOT

Review Team- DPs

09.00-11.00

Done

Flow of funds, IFMIS EPICOR (Capacity building and connectivity), Closing of accounts, Towards accrual accounting, audit response. (continues after lunch break)

AccGen Conference room

AccGen DP KRA 3 and 5. DP

KRA team 3: Belgium, Canada/CIDA, EU-

Delegation, Ireland, WB

13.00-15.00

Done

Program based budgeting, Planning and budgeting tools including MTEF, LGA formula

PFMRP secretariat PC

room.

PMO-RALG

DP KRA 2

13.00-15.00

Done

PAF tax related indicators, Tax collection, revenue forecast, exemptions, Division of Labour between CPAD and TRA, Debt Management, Budget transparency including budget calendar, Capacity building and support from other sources,

CPAD office, MoF building, 3rd floor, room 339

CPAD DP KRA 1 DP KRA team

1: Denmark, Belgium, Japan, WB (with interests

from team 2 and 3)

13.00-15.00

Done

Procurement compliance, capacity building

PPRA Office PPRA DP KRA 4

Wednesday - 19/09/2012

09.00-11.00

Done

Public procurement capacity, reviewing M and E.

Public Procurement

Office

Sukari House

Public Procureme

nt Unit

DP KRA 3 (4)

09.00-11.00

Done

Oversight, register and towards new TR act

TR office TR DP KRA 1

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Time and status

Issues For Discussion Meeting Location

Meeting

with- GOT

Review Team- DPs

10:30-12:00

Done

Change management and Cross Cutting Issues

DPD Office DPD DP KRA 5

13.00-15.00

Done

Capacity building, towards AFROSAI 3, extending the audit coverage incl. Follow up audits, database on outstanding matters, Citizen audit report

NAO conference room

NAO DP KRA 4

13.00-15.00

Done

Flow of funds, Closing of accounts, roll out of IFMIS/EPICOR and connectivity

PFMRP sec. Co-ordinator room

PMO-RLG DP KRA 3 and 5

Thursday - 20/09/2012

09.00-11.00

Done

Asset management DGAM office DGAM DP KRA 3

09.00-10.30

Done

ICT/IFMIS DFMIS office DFMIS DP KRA 5

09.00-11.00

Done

Parliament Office/Secretariat, Support under PFMRP IV, objectives, targets and milestones

Parliament Office,

Dar Es Salaam

Parliament Secretariat

DP KRA 4

10:30-11:30

Done

Change management and Capacity building

DAHRM office

MoF 3rd Floor, room 9

DAHRM

DP KRA 5

12:00-13:00

Dept Management DP KRA 5

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Time and status

Issues For Discussion Meeting Location

Meeting

with- GOT

Review Team- DPs

Done

13.30-15.00

Done

JAST and Aid Platform, DP funding on GoT system

EFD conference room

CEFD DP KRA 1

13.00-15.00

Done

Change management: Personnel management (distribution across country/formulas, payroll management), Incentives and payroll structure, capacity building (co-ordination/systematisation of training)

POPSM meeting room

POPSM DP KRA 5

15:00-16:00

Done

TISS, EFT, Connectivity, Closing bank account and reconciliation, Debt management, transfer of funds

BoT meeting room,

BoT PD KRA 5 (3)

Friday - 21/09/2012

09:00-10:00

Done

Mid-mission stocktaking MoF Conference Room

DPD All team

09.00-11.00

Done

PAF tax related indicators, Tax collection, revenue forecast, exemptions, Division of Labour between CPAD and TRA, Division of Labour between LGA and TRA, support from other sources

TRA Office TRA

DP KRA 1

11.00-12.00

Change management, Communication

CU office MoF Communic

DP KRA 5

78

Time and status

Issues For Discussion Meeting Location

Meeting

with- GOT

Review Team- DPs

Done ation Unit

12.30-14.00

Done

Demand side of PFM Danish Embassy CBOs/NGOs

All Teams

Monday - 24/09/2012

09.00-11.00

Done

Change and program management, PFMRP IV as a core reform program,

Planning Commission

meeting room

Executive Secretary

DP KRA 5

09.00-11.00

Possible follow up meeting reserve

13.00-15.00

Done

Reform Co-ordination Office, co-ordination of core reforms

RCU office RCU PFM DPG Co-chairs

13.00-15.00

Possible follow up meeting reserve

Tuesday - 25/09/2012

09:00-11:00

Spending MDAs, Budget planning and execution, Flow of funds

Ministry of Health and Social

Welfare

Permanent Secretary

DP KRA 2,5

09.00-11.00

Income generating MDAs, Tax and non-tax revenues, Flow of Funds

Ministry of Energy and

Minerals

Permanent Secretary, Commissio

ner for Minerals,

Chief Accountant

DP KRA 1, 3

13.00- Spending MDAs, Budget planning and execution, Flow of

Mo Education Permanent DP KRA 2,5

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Time and status

Issues For Discussion Meeting Location

Meeting

with- GOT

Review Team- DPs

15.00 funds meeting room Secretary

13.00-15.00

Income generating MDAs, Tax and non-tax revenues, Flow of Funds

MNRT meeting room

Permanent Secretary

DP KRA 1,

Wednesday - 26/09/2012

07:30 PFMRP IV with focus: Flow of funds and information, ICT and connectivity, follow up of audits.

PMORALG

Dodoma

Permanent Secretary

KRA Leads

10.00-12.00

LGA perspective Kibaha

RAS Coast Region, Regional

Accountant, and

Internal Auditor

LGA visit team 2

14.30-16.00

LGA perspective Bagamoyo

DED, Treasurer,

and Internal Auditor

LGA visit team 2

Thursday - 27/09/2012

Draft Aide Memoire CIDA Appointed counterparts

Friday - 28/09/2012

14:00-16:00

Wrap-up MoF Conference Room

ALL All teams

Meetings conducted after wrap up: Softech (3rd October), LGA visit Mkuranga and Temeke (4th October)

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ANNEX F: Draft Terms Of Reference for PEFA study on Central and Local Level

Discussion Draft - Terms of Reference

Public Expenditure and Financial Accountability (PEFA) Assessment of

Central and Local Government F/Y 2011/2012

Proposed Start Date – Feb 2013

1. Introduction

Within the framework of the programming of the Public Financial Management reforms and the

discussions on good governance, the Government of Tanzania is committed to the implementation of a

third Public Expenditure and Financial Accountability (PEFA) Assessment. The first PEFA assessments

were carried out in 2006 and 2009 and its results are available in the PEFA secretariat website

(www.pefa.org).

A group of development partners support the GoT in implementing public finance reforms.

The GoT, jointly with the development partners, is committed to applying PEFA as a means of

monitoring improvements in Public Finance in the country. The PFM DPG together with the MoF under

the auspices of the PFMRP 4, officially launched in June 2012 ahead of the budget speech by the PM,

would like to retain the services of a Team of experts to undertake a third PEFA exercise. The assessment

process and the PEFA report will be monitored and endorsed by the Public Finance Management Reform

Program as represented by the Joint Steering Committee. (JSC)

The third PEFA mission requires the services of a Team of up to seven Experts with a proposed input of

150 days over a period of three calendar months. The core team will be recruited by a Team appointed

by the JSC. Funding sources and the recruitment process will be defined in discussions between the

Government and the Donors. It is expected that once the Team Leader is recruited, he/she will be

consulted, as much as possible, in the selection of the additional team members, beyond the core team

of experts.

2. Background

The Government of Tanzania (GoT) is pursuing a national development agenda that seeks to instil sustained economic growth and reduce the high incidence of poverty. Out of a number of

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strategic documents, the PRSP process (Mkukuta) and the 5 years development plan are the medium term ones that sustain development policies in Tanzania.

The PFM reform is instrumental in the fight against wasteful spending and corruption as it improves

access to financial data, audit related to risks and results, open and competitive procurement processes

and commitment control.

The GoT hired a secretariat alongside the PFMRP to serve as a focal point to coordinate PFM reforms

under the coverage of a Reform Coordination Unit (RCU). To translate the above vision into reality, PFM

CU coordinated the development of a Public Finances Management Strategy with the other core reforms.

The PFM strategy was based on several diagnostic and analytical works carried out by Government and

Development Partners. The strategy also benefited from a wide range of consultations within

Government, civil society and development partners.

Key elements of the PFM reform programme identified within the strategy are organized around 5 Key Results Areas with specific outcomes:

KRA1: Revenue management

KRA2: Budgeting and Planning

KRA3: Budget Execution, Transparency and Accountability

KRA4: Budget Control and Oversight

KRA5: Change management, Program management and Communication.

A number of development partners are providing or are in the process of providing support to the PFM

reform.

DFID, CIDA, Denmark, Ireland and KFW have signed a Memorandum of Understanding with the

Government of Tanzania establishing a pooled funding mechanism.

PEFA has the 3 following components:

i) An external diagnosis on public financial management;

ii A country-led agenda;

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iii A coordinated programme of institutional support on the basis of the action plan

prepared by the national authorities;

The three components are closely connected. It is important to note that in order to encourage partner

country ownership of the reform process the external diagnosis does not include any recommendation or

action plan.

The core of PEFA consists of the analysis of the indicators which are referred to as "high level" because

they cover the six essential dimensions to be analysed in an evaluation of public financial management.

These dimensions are:

1. The credibility of the budget - the budget is realistic and implemented as intended;

2. Comprehensiveness and transparency - the budget and the fiscal risk oversight are

comprehensive and fiscal and budget information is accessible to the public;

3. Policy-based budgeting - the budget is prepared with due regard to government policy;

4. Predictability and control in budget execution - the budget is implemented in an orderly and

predictable manner and there are arrangements for the exercise of control and stewardship in

the use of public funds;

5. Accountancy, recording, and reporting – adequate records and information are produced,

maintained, and disseminated to meet decision-making control, management and reporting

purposes;

6. External scrutiny and audit – arrangements for scrutiny of public finances and follow up by the

executive are operating.

The PEFA evaluation is an external validation exercise which requires a strong implication of the partner

country and, ideally, should be repeated every 3 years. In this connection the

PEFA report is not co-written with the partner country or that, for example, the score on the indicators

be negotiated.

It is important to underline that there is no implicit link between the outcome of the PEFA assessment

and eligibility for budget support. The last PEFA in Tanzania was carried out in 2009, and both

development partners and the Tanzanian Government see the value added by performing a third PEFA to

follow-up on progress on the indicators and on the PFM reform. This assessment will provide the GoT

with an independent assessment of the status and progress achieved in the implementation of PFM

systems. PEFA indicators have been used as baseline and to set the major performance targets for PFM

RP Phase IV.

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3. The Objective of the 2011-12 PEFA assessment

The mission will draft a comprehensive “Public Financial Management – Performance Report” (PFM-PR)

prepared according to the PEFA methodology. This will provide the basis for the analysis of the overall

performance of the PFM systems of Tanzania.

The PEFA assessment is intended to be used as a tool to enhance the effectiveness of the funds

channelled through the Tanzanian PFM systems. In the short-term, the PEFA assessment will follow–up

on progress against the PEFA indicators from the 2009 assessment and will be used as a basis for

information and monitoring so as to:

(i) assist the Government in strategizing and prioritising the implementation of PFM Reforms and systems

enhancements.

ii) inform the dialogue on PFM between Government and Development partners;

(ii) Verify the degree to which the general or specific PFM conditions for ongoing budget support

programme have been met.

4. Stakeholders: development partners and national authorities

The PFMRP Joint Supervision Mission Team was tasked by the JSC with the responsibility to draft the

Terms of Reference and timetable for the PEFA assessment of fiscal 2011-12 during the September 2012

review mission. This discussion draft is now put forward by the Mission Team to start the discussions and

finalization of Terms of Reference with the Government.

The Government of Tanzania will lead the 2013 PEFA exercise under the auspices of the PFMRP Joint

Steering Committee chaired by the Principal Secretary of the Ministry of Finance. The Joint Steering

Committee will appoint a small team of Government Officials and Donor Partners to Coordinate and

oversee the PEFA assessment on behalf of the JSC. The PFM Donors will provide financial assistance for

the exercise.

This team will:

Finalize the Terms of Reference and proposed timetable for the PEFA Assessment by Nov. 30, 2012.

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Identify the source of funding and contracting modality for the Team of Experts who will carry out the PEFA assessment.

Ensure that contracting of the Team of Experts consistent with the Level of effort indicated in the ToRs is completed effectively adn on time.

Assist with the coordination and organization of the mission.

Provide ongoing liaison with the PEFA Expert Team during the mission adn will monitor the quality of the report in consultation with the PEFA Secretariat and the Government;

The Government of Tanzania will:

provide the names of the officials (Ministry of Finance MoF) who will be the primary contact point for the PEFA Experts during the assessment;

provide the names of government officials will accompany the PEFA Experts during the mission;

Ensure that all relevant stakeholders within the government will review and provide comments on the draft and final reports to the PEFA Experts and the Joint Oversight Team appointed by the PFM RP Joint Steering Committee.

The PFMRP Joint Steering Committee will approve and issue the final PEFA reports ensuring that broad

stakeholder briefing sessions are conducted to disseminate the results.

Other State structures:

The Government focal point will specify the modalities for the involvement of other state structures

with an interest in the PEFA assessment before mission start. These include but are not limited to the

Tanzanian National Audit Office (NAOT), the Public Accounts Committees of the National Assembly, The

Tanzania Revenue Authority (TRA), and the Public Procurement Regulatory Authority (PPRA) which is

largely responsible for public procurement and its oversight within Tanzania.

Local Government Authorities

The proposed PEFA, based on the 2011/2012 F/Y, will encompass the local government authorities who

also manage public finance. The main Government interlocutor for coordinating this segment of the

assessment will be PMORALG whose assistenace will be sought in defining the sample of LGAs on the

basis of which the assessment will be made. The level of efforts will depend on this sampling but the

sample should involve a minimum of 8 LGAs, based on:

Geographical spread (zones)

Rural/Urban

Organisational structure (Municipal, Disctrict)

Political representation (government and opposition)

CAG reports for Financial Year 2010-11.

LGDG Annual performance assessment for FY 2012-2013 (August 2012)

5. Specific tasks in the preparation of the PFM-Performance Report

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In order to meet the objective of the assessment mission the following tasks shall be carried out:

Documentation. Before the mission in Tanzania the experts will consult on the PEFA website

(www.pefa.org) and collect all basic documentation that they deem necessary for the mission’s work in-

country. They will also let the Government know, through the Government Focal Point and the Lead DP,

any need for additional information.

The experts will specify the time-span they deem necessary between the date of reception of this basic

documentation and the actual start of the mission in-country, especially taking into account the

organisation of the training/information workshop to be held upon arrival in Dar es Salaam. The PFMRP

Team will follow up this issue with the National Authorities so as to minimize the risk of disrupting the

mission which could be entailed by an important delay in providing this basic documentation.

Work-plan: On arrival the experts will submit to the national authorities and the PFMRP Team a work-

plan describing the main steps of the mission, notably specifying the list of the interlocutors to meet, the

tentatively scheduled meetings and the list of required information not yet collected and to be provided

in-country. The work-plan will also need to take into account the Government staff who will be closely

involved in the PEFA assessment (see below). This work-plan may foresee a mid-term meeting gathering

all the stakeholders so as to report on the work’s progress and possible difficulties faced. A final

debriefing session presenting the aide-mémoire will be planned.

Capacity Building: Two officials appointed from the Government, will work closely with the mission in

order to build capacity in the Government for PFM assessment and reporting.

Information gathering and analysis: The Experts will collect and analyse the required information, hold a

training/information workshop, hold meetings with key stakeholders, and prepare an aide-mémoire

which will be presented to key stakeholders at the end of the field mission.

Training/information workshop.

The mission in-country will start with a 1 - 2 days information/training workshop gathering all the

stakeholders and enabling the latter to understand the challenges and the modalities of the PEFA

assessment and how it relates with PFM. This workshop will be run by the experts and its organisation

and financing will be taken care of by the successful consortium. The pedagogical material used by the

experts will be that worked out by the PEFA Secretariat and posted on its website. This workshop is

expected to comprise: (i) a general session with all the stakeholders aiming at providing a general

understanding of what PFM and a PEFA assessment is about; (ii) a technical session with the national

authorities (government and external control body) to explain the indicators and (iii) a technical session

with the GoT counterparts to discuss data requirements. At the end of the assignment, the experts will

also organise a 1 day workshop in Tanzania where the Government, other key local institutions and

development partners will analyses the PEFA Report and discuss possible options for addressing the

indentified weaknesses. The workshop will include an information session on PFM reform. The Expert will

produce minutes of the workshop, which will be forwarded to the Government.

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The Consortium will be responsible for the logistics of the workshop and will be assisted as far as possible

by the counterpart (to be nominated by the PS Finance) and the lead DP and the other participating DPs.

7. Methodology

Reference Documents: the experts, in close coordination with government services involved, will

undertake the required analysis while rigorously following the structure, the methodology and the

guidelines (annexes 1 § 2) of the document adopted by the PEFA Steering Committee and entitled “

Public Financial Management – Performance Measurement Framework”, the related amendments and

clarifications subsequently adopted, as well as the document entitled “Guidance on evidence and sources

of information to support the scoring of the indicators” These documents can be found on the website

www.pefa.org. (The original version of this document is in English). In addition the WB Report on the

Observance of Standards and Codes on Fiscal Transparency (ROSC) for Tanzania of April 2005 will be

useful reference material and can be found on the website

http://www.worldbank.org/ifa/rosc_aa_tza_0405.pdf

The quality of public financial management (PFM) at the local government level will be evaluated

according to the Guidelines for application of the PEFA Performance Measurement Framework at Sub

National Government Level (Volumes 1 and 2: Main Guidelines and annex), available on the website

www.pefa.org. The evaluation will be based on the standard PEFA methodology; using the 31 PEFA

standardized criteria as adjusted for the Sub National level; and including the new PEFA indicator on HLG-

1: Predictability of Transfers from Higher Level of Government.

Differences in Methodology. If the particular situation of the country requires the addition of specific

indicators and/or, for some indicators, to diverge from the prescribed methodology, this shall be duly

justified by the experts and require the agreement, during the mission, of the lead DP and the

participating DPs. In any case, only a very limited number of additional indicators would be acceptable. In

this case, as well as for any possible proposed difference in methodology, the experts will ask for the

written opinion of the PEFA Secretariat in Washington. In Tanzania for example, last PEFA exercise

reported that the Tanzanian budget is highly centralised, but there is a growing significant part of the

budget that is decentralised. This PEFA exercise will need to pay attention on decentralised budgets, the

policy issues around fiscal decentralisation, and audit and reporting of the same The methodology at

local level will in any case be considered including comments of colleagues at local level, including the

possibility of having stand alone assessments per LGA, depending on the sampling exercise.

Interpretation. Any question on the interpretation of the guidelines, which the experts cannot resolve

with the available documentation, should be addressed to the PEFA Secretariat and/or to the lead DP

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Supporting information. In the report the experts will justify the scoring and describe, in an annex, for

each indicator, the analytical work which has been carried out mentioning the sources of information and

documentation used. Furthermore, for each indicator, the experts will mention the any possible

difficulties encountered during the assessment, the approach used to overcome these difficulties, and, as

appropriate, the additional investigative work judged necessary to complete the analysis carried out.

8. Reporting

Reporting requirements are set out below:

In view of the final session of debriefing at the end of the mission, the experts will provide the

government and the DPs with an report (10 pages maximum, excluding annexes), in 20 copies and

electronic copy, indicating the main findings and reflections which will be developed in the draft report.

This report will be complemented an annex containing the detailed analysis of the 31 indicators of the

PFM-PR.

The detailed analysis of the PFM-PR will be presented separately for the central and local levels of

government. With respect to Local Government, the results from the sampled Local Government

Authorities will be presented in both disaggregate and aggregate formats. The Performance Report will

cover the institutional relationship between central and local government. The aide memoire will include

a statement on the impact of central government practices on LG PFM performance.

Within one week after the end of the mission in-country, the experts will send to the Government and

the DPs a draft PFM-Performance Report, in 10 copies and electronic copy, based on Annexes 1 and 2 of

the above-mentioned PEFA document.

The Government and other stakeholders will then have 4 weeks to consider the draft report and send

their comments to the experts.

Within 1 week after the reception of the comments, the experts will revise the report taking into

account the comments received. The Final Report will be discussed during the final workshop and the

expert will make a final revision according to possible comments from the workshop. The latter version

will be sent in 20 copies and electronic copy to the government and the DPs. It will contain, in an annex,

the observations of the government on the points where the latter disagrees with the findings of the

experts.

The report will be written in English, the Got will deal with its translation in Kiswahili.

The final report with be published in the MoF website and the DPG main website.

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9. Calendar (see annex 1)

Mission duration: The mission should start at the end of March 2013 and covers 3 calendar months:

Global calendar of the team of experts:

o Preparation phase: 3 days including one day briefing by the Joint PFMRP Team. The Team Leader and

Expert 2 will prepare the workshop and the schedule of meetings, collect the necessary information, and

finalise the work plan for the study.

o Mission in-country: maximum duration of 2 weeks. This will include the information/ training workshop

and an end-of-mission debriefing meeting presenting an aide-mémoire.

o Report drafting: 4 days of input over a period of 3 months. After the field mission, the experts will have

one week to finalise and submit the draft report.

The Government will be given up to 1 month to consider the report and submit comments. The experts

will then have one week to revise the report according to comments received.

o Training/workshop: one day for the Team Leader in Tanzania to present and facilitate discussions

around the PEFA Report

o Final debriefing at PMC level : one day for the Team Leader only after having submitted the Final

Report.

The TOR include, for each week of work, a tentative table indicating the dates and key steps in

preparing the PFM-PR (see annexe 1).

10. Composition and professional profile of the core team

Proposed Level of Effort2:

Team Leader

Project Planning 4 days

Literature review - research

Field Work 21 days

Briefings, consultation with stakeholders and beneficiaries ,preparation of draft final report and

debriefing session 2 Indicative, depending on the sample size of the local public finances assessment

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Preparation of Final Report 5 days

Presentation of Final Report 2 days

Total 32 days

Team Members

Field Work 21 days (x6) 126 days

Briefings, literature review, consultation with stakeholders and beneficiaries

Preparation of draft final report and debriefing session s

Preparation of Final Report 3 days (x6) 18 days

Report Finalization 1 days (x6) 6 days

Total 25 days (x3) 150 days

Total Level of Effort = 182 days

The core team will be composed of six experts.

The team leader, international expert, will have at least 10 years of experience in public finance

management, of which 7 years should be on analysis and/or audit of PFM in developing countries.

It will be of great added importance if the team has great country knowledge (or has a member on

team with country knowledge).

It will be of added advantage if a member of the last PEFA exercise would be part of the team.

The other experts will have at least 5 years of experience in the area of PFM.

The cumulated experience of the experts should ensure that the team is able to cover the analysis of

the different areas of the PFM-Performance Report.

The international experts will have an excellent command of English

It would be an asset for one of the experts to have good prior knowledge of the specific budget and

PFM situation in Tanzania, or at least in Anglophone countries with similar PFM system.

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Experience in conducting PFM assessment using the PEFA methodology is indispensable (at least for

the team leader).

University degree in economics or related field is required

The team must possess good organisational, communication and relational skills

Other Administrative information

Most in country mission will be based in DSM, however an intercity budget should be foreseen for

missions in regions, specifically to cover local public finances.

Two workshops with stakeholders to be organised and budget should be foreseen for their

organisation. A maximum of 40 participants per workshop can be expected.

Management Arrangements

Equipment

The contractor is required to ensure that all experts are equipped with own computers (laptops) and

telephones at the contractor's cost.

Fees, per diems and working hours

The duration of the assignment is defined as the “total engagement including holidays and weekends”.

Fees will be paid for the working days (on which a service is provided). Per diems will be paid for the

duration of the stay in the beneficiary country (excluding any leave days) at the rate applicable at the

time of request (see Europe Aid website). Days taken as annual leave are not considered as working days.

The expert may wish to take leave during the assignment (as agreed with the Head of NAO Support Unit)

or reduce the length of assignment by foregoing the leave entitlement.