One UN Joint Programme on Social Protection

Mozambique

2017-2020

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Overview

Country Mozambique

Programme name One UN Joint Programme on Social Protection

Geographic focus area Nationwide

Expected outcomes 1. By 2020, clear programmes and policy designed to operationalize the ENSSB II

2. By 2020, robust evidence and clear advocacy and communication on key components of the ENSSB II

3. By 2020, MGCAS capacity to coordinate and implement strengthenedDuration 1 September 2017 to 31 December 2020

UK contribution: until 31 March 2020 Sweden contribution: until 31 December 2020 Netherland contribution: until 31 December 2020

Implementing Agencies

Admin Agent: Convening Agent: UNICEF

Participating Agencies: ILO; UNICEF

Pass-through Joint Programming modality

UN contacts UNICEF Representative: Marcoluigi Corsi

ILO Country Director: Alexio Musindo

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Table of Contents

Overview..............................................................................................................................................................2

1. Executive summary......................................................................................................................................5

2. Situation analysis.........................................................................................................................................7

3. Strategies including lessons learned and the proposed joint programme...................................................9

Lessons learned...................................................................................................................................…..9

Proposed Joint Programme strategies....................................................................................................10

4. Results framework.....................................................................................................................................11

5. Programme Implementation......................................................................................................................17

Management and coordination arrangements........................................................................................18

Roles and Responsibilities..........................................................................................................................18

Fund Management arrangements..............................................................................................................19

Financial risk management........................................................................................................................19

6. Monitoring, evaluation and reporting........................................................................................................21

7. Legal context or basis of relationship.........................................................................................................22

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Acronyms

CEDSIF Centre for Development of Information SystemsECASSSB Estrategia de Comunicacao e Advocacia do subsistema de seguranca social básica. E-INAS Electronic management information systemENSSB National Basic Social Security Strategy or Estratégia Nacional de Segurança Social BásicaENDE National Development Strategy (2015-2035)INAS National Institute for Social ActionINGC National Institute for Disaster ManagementIOF National Poverty Assessment ReportMGCAS Ministry of Gender, Children and Social ActionPSSB Basic Social Subsidy Program, or Programa Subsídio Social Básico.PASD Direct Social Support ProgramPASP Productive Social Action ProgramPQG Five Year Programme (2015-2019)PUNO Participating UN OrganisationUNJP United Nations Joint ProgrammeSADC Southern African Development UNJP UN Joint Programme on Social Protection (2017-2020)

Glossary

Basic Social Subsidy Program The PSSB is a social pension for poor households without adults able to work

Productive Social Action Program The PASP is a labour-intensive public works program for poor households with adults able to work

Direct Social Support Program The PASD is a temporary support program for households experiencing idiosyncratic shocks affecting their consumption and income.

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1. Executive summarySocial protection is widely recognized as an effective set of policy interventions to reduce poverty, vulnerability and inequality, and promote inclusive economic growth. Over the past decade, Mozambique’s social protection system was consolidated with the 2010-2014 National Basic Social Security Strategy, however, despite numerous improvements the sector has remained fragmented.

The new National Basic Social Security Strategy, or ENSSB II, covering the period 2016-2024, endorsed by the Council of Ministers in February 2016, provides a unique opportunity to address this fragmentation and better align those involved to deliver an ambitious set of targets. It has four key objectives:

1. Enhance the level of consumption and resilience of the population living in situations of poverty and vulnerability;

2. Contribute towards the development of human capital through improvement of nutrition, access to basic health and education services of the population segments living in poverty and vulnerability;

3. Prevent and mitigate the risks of violence, abuse, exploitation, discrimination and social exclusion through social services, and

4. Develop the institutional capacity of the government sectors that coordinate basic social security.

The Joint Programme has been structured around a coherent package of interventions, all of which are included in the ENSSB II and fully aligned with its Operational Plan around the 38 “Strategic Actions”, but where the UN agencies have the mandate, capacity and strong working relationships with government partners so as to further strengthen the social protection framework. Over the course of the programme (2017-2019), the two UN agencies involved (ILO and UNICEF) will work with partners at national, provincial and district levels to deliver the following results:

1. By 2020, clear programmes and policies designed to operationalize the ENSSB II 2. By 2020, robust evidence and clear advocacy on key components of the ENSSB II3. By 2020, strengthened MGCAS’s capacity to coordinate and implement the ENSSB II.

Given the ambitious beneficiary targets set in the ENSSB II and other key documents, a more modern and integrated social protection system is required, but this will be challenging. Operationalisation of the ENSSB II 2016-2024 comes at an important time in Mozambique as, following a sustained period of growth, the Mozambican economy has contracted significantly given the recent severe economic crisis. However, with challenges come opportunities and the UN Joint Programme, as detailed below, has been constructed around providing critical support to MGCAS and INAS to implement the new ENSSB at a time when vulnerable families require assistance more than ever.

Outcome 1 focusses on the design component and includes the procedural work required for the new/ revised programmes and social welfare services in addition to establishing e-INAS and M&E system. Outcome 2 focusses on generating data and evidence to inform advocacy, policy work and potential programme scale-up. Outcome 3 focusses on the implementation and capacity development necessary to operationalize the new social protection programmes.

The Joint Programme will use a ‘pass through’ modality. This was selected based on the experience in the past as to achieve the most effective, efficient and timely implementation, and to reduce financial and transaction costs for national partners, donors and the UN. The Joint Programme will be overseen by a Steering Committee responsible for strategic guidance and oversight. UNICEF is proposed to act as the Administrative Agent, responsible for transmitting and reporting on received contributions. In addition, UNICEF will serve as the Convening Agent, responsible for bringing the Participating UN Organizations (PUNO) together, supporting the Steering Committee and consolidating narrative reports.The UN agencies will identify and adopt actions to mitigate the effects of internal or external factors that might impair the achievement of expected results (see Annex 2 for additional information). The identified risks will regularly be monitored and assessed and corrective actions taken as the need arises and reported in progress reports.

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The Joint Programme will be monitored through a joint M&E system that will be developed together with the government and development partners. The internal Joint Programme M&E system will monitor and evaluate if and how the programme reached its planned objectives1, in particular it will focus on looking at the effectiveness of the programme in terms of remodelling, knowledge and advocacy, and system strengthening.

Support provided by the UN agencies will consist mainly of technical expertise, capacity building, financial and material support to ensure the capacity of INAS and MGCAS is strengthened to roll out the newly approved social protection programmes in the field in a more effective, reliable and accountable manner.

1 This is different from the M&E system developed to monitor the results of the ENSSB

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2. Situation analysis

Over the past decade, Mozambique has ranked amongst the top ten fastest growing economies in the world. Yet, despite strong economic performance, Mozambique remains one of the poorest countries in the world, ranking 180 of 188 countries in the latest Human Development Report (2015). 2 Mozambique is also one of the most disaster prone countries in the world with events that regularly have a significant effect on the most vulnerable. The 2014/15 National Poverty Assessment3 confirms large differences in wellbeing remain between different socio-economic income groups and geographic areas. The same assessment confirms that, despite a reduction of average poverty rate from 2011, inequality has also increased and, more importantly, the number of poor people has increased despite 10 years of economic growth4. Stalling progress in reducing the number of poor people, and the completely changed macroeconomic scenario, has triggered a policy interest in the importance of having a robust social protection system in place and the role of social transfers to protect the poorest and most vulnerable.

Social protection is widely recognized as an effective set of policy interventions to reduce poverty, vulnerability and inequality, and to promote inclusive economic growth. It requires a solid commitment from Government, and an active role of Civil Society in monitoring and promoting its implementation. Mozambique has had a social protection system in place since 2007 and social protection has become an important element in the political debate in the push for a more inclusive poverty alleviation approach. The Government of Mozambique explicitly recognizes in various strategic documents, such as Five-Year Government Plan (PQG) 2015-2019 and National Development Strategy (ENDE) 2015-2035 the importance of social protection systems in securing the well-being of the population and in fostering economic and social development. Over the past decade, the social protection system in Mozambique has been consolidated, with the establishment of a legal and regulatory framework for basic social protection, and the elaboration and enactment of a National Strategy for Basic Social Security, now in its second incarnation.

The 2010-2014 National Basic Social Security Strategy, known as the ENSSB I, enabled Mozambique to strengthen the social welfare options available to vulnerable groups, and included a set of old (e.g. the Basic Social Security Programme—PSSB) and new (e.g. the Productive Social Action Programme—PASP) non-contributory social protection programmes, all implemented by the National Institute for Social Action (INAS) under the policy guidance of the Ministry of Gender, Child and Social Action (MGCAS). Between 2010 and 2014, there were significant advances: the number of beneficiary households of INAS programmes increased from 254,000 to 427,000; the amount paid by PSSB increased threefold in real terms5; and the PASP—a public works scheme—was introduced to cater for poor, labour-unconstrained households. All these changes implied a substantial increase in government expenditures in the area, which rose from 0.21 per cent to 0.58 of gross domestic product (GDP) between 2011 and 2015.6

However, an evaluation conducted by ILO in 2014 as a preparatory work for the design of ENSSB’s next phase, identified a number of challenges and limitations to be addressed (detailed in the next section) that included i) important coverage gaps as the programmes do not effectively target poor households and; ii) the programmes only reach a small proportion of the population7.

Furthermore, the development of the ENSSB II provided an opportunity to address Mozambique’s overall development context. The ENSSB II 2016-2024 itself recognises that maternal and neonatal survival remains a major challenge, and virtually no progress has been made in reducing chronic under-nutrition with stunting

2 http://report.hdr.undp.org/ 3 Fourth National Poverty Assessment (IOF 2014/2015), MEF p24 A redução das taxas de pobreza entre 2008/09 e 2014/15 foi insuficiente para produzir uma redução da estimativa do número absoluto de pessoas em situação de pobreza que, novamente, subiu para 11,8 milhões” Quarta avaliacao de pobreza, p xvi5 Threefold increase applies to the period 2007 to 2014.6 Social Action Budget Brief, ILO-UNICEF, 2016.7 Only 15% of households that live below the poverty line benefit from social protection programmes (Social Action Budget Brief, ILO-UNICEF).

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Figure 1: Key adjustments in the ENSSB II

rates one of the highest levels in the world (43%)8. Inequalities in gender relations weaken the situation of women and girls and increase risks particularly with regard to early pregnancies, child marriages, gender-based violence, HIV infection, access to inheritance and economic opportunities.

These issues continue to pose a serious challenge not only for child survival but for Mozambique’s development prospects, given the irreparable damage to Mozambique’s human capital. The ENSSB II 2016-2024 also notes that there is an important and synergistic relationship between poverty, climate change, the risks associated with natural disasters and the seasonal fluctuations in food insecurity, which directly and indirectly affects the most vulnerable families. The frequency and impact of natural disasters are exacerbated by long-term climate change, and in a context of high poverty, households’ capacity to prepare for, respond to and to recover from shocks is extremely limited.

To address these challenges, and in line with the social protection results captured in the Five Year Programme (PQG) 2015-2019 and National Development Strategy (ENDE) 2015-2035, the Government of Mozambique developed, with the support of the UN agencies, the National Basic Social Security Strategy (ENSSB II) 2016 to 2024, which was endorsed by the Council of Ministers in February 2016. The ENSSB II has a longer time horizon, effectively reflects an ambitious agenda for non-contributory social protection in Mozambique, specifically to ensure “greater autonomy and resilience of the people living in situations of poverty and vulnerability, prioritising respect for their social rights”.

The ENSSB II has four key objectives:

1. Enhance the level of consumption and resilience of the population living in situations of poverty and vulnerability;

2. Contribute towards the development of human capital through improvement of nutrition, access to basic health and education services of the population segments living in poverty and vulnerability;

3. Prevent and mitigate the risks of violence, abuse, exploitation, discrimination and social exclusion through social services, and

4. Develop the institutional capacity of the government sectors that coordinate basic social security.

The above objectives emphasize the unique nature of the ENSSB II, which moves beyond the provision of cash and in-kind assistance in a protective role, but also seeks to address the multiple social risks and vulnerabilities linked to poverty, deficits in assets and human capital, and social exclusion.

The ENSSB II 2016-2024 operational plan was developed after ENSSB endorsement, and consists of 38 strategic actions, with a differentiated timeframe (2017-2019) to guide the initial period implementation. A “Documento de Programas”9 to adjust the regulatory framework was also produced with ILO support including: 1) the redesign of the PSSB with the gradual introduction of an old age grant, a disability grant and a three-pronged child grant; and the adoption of a targeting approach; 2) recognition that the basic social security system needs to address the needs of the most marginalized and deprived families with regards to shock-response 3) the introduction of a dedicated

8 Demographic and Health Survey, Ministry of Health and National Institute of Statistics, 2011.9 “Programas de Segurança Social Básica no Quadro da Operacionalização da Estratégia Nacional de Segurança Social Básica II (2016–2024)”. This document supports the Decree that approves the new set of Basic Social Protection Programmes under the ENSSB II and guide the revision, creation and adjustment of such set accordingly to the principles of the ENSSB II.

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programme for the delivery of multiple social welfare services at community level; 4) a gradual increase in the value of social transfers; and 5) the strengthening of the institutional, human, physical, technical and financial capacity of INAS and MGCAS, including the decentralisation of INAS personnel at district level and the roll-out of an integrated management and information system for basic social protection programmes (e-INAS).

In sum, given the ambitious beneficiary targets set in the ENSSB II and other key documents (PQG, ENDE 10) a more modern and integrated social protection system is required, but this will be challenging. Mozambique needs to enhance communities’ resilience, and ensure an efficient and effective social protection system is able to reach more of the poorest and vulnerable people. More specifically, modernisation will require being able to better manage the beneficiaries, adopt alternative and efficient payment mechanisms, re-register current beneficiaries and amend operational procedures and guiding programmatic documents accordingly. While integration will require that social protection services are incorporated into a holistic system of social protection for the most vulnerable population targeting both economic and social risks. These requirements, in turn, demand significant strengthening of the programming tools, data and human resources available to support implementation. However, these demands, and the operationalisation of the ENSSB II come at an important time in Mozambique as, following a sustained period of growth, the Mozambican economy has contracted significantly given the recent severe economic crisis. Nevertheless, with challenges come opportunities and the Joint Programme, as detailed below, has been constructed around providing critical support to help operationalise the new ENSSB II at a time when vulnerable families require support more than ever.

3. Strategies including lessons learned and the proposed joint programme

Over the past decade, the social protection system in Mozambique has been consolidated, and a legal and strategic framework for basic social protection established. Furthermore, throughout the implementation of the National Strategy for Basic Social Security (ENSSB) to expand the coverage of eligible households important lessons have been learned, both about Mozambique’s specific social protection requirements and the areas where the joint UN efforts can be improved. These lessons are detailed below and have been used to inform the proposed joint programme.

Lessons learnedFrom the experience of the last ten years, the following lessons have been documented:

Critical to rectify the significant exclusion error, particularly of the most vulnerable given they reside in houses with individuals capable of working.

Low level of coverage provided across multiple areas of the ENSSB11. Specifically the number of households covered is well below the identified needs, reaching only about 15% of the estimated number of poor households, and thus below the targets approved in ENSSB II 2016-2024 and in the other programmatic instruments, such as PQG 2015-2019 or ENDE 2015-2035. This is compounded by the fact that potential beneficiaries are being pre-registered but may stay on a waiting list for years without ever receiving any benefits. 12

High transaction costs for social benefits. An Oxford Policy Management study identifies a highly inefficient payment process with direct cash payment representing a significant drain on staff and district officials’ time, which is not efficient and limits the scope for programme expansion.13

10 PQG sets a target of covering 25% of households in a situation of vulnerability by 2019, and the ENDE, sets the target of ensuring that about 75% of the poor and vulnerable households are benefiting from basic social protection by 2035.11 National Basic Social Security Strategy (2016-24), Government of Mozambique, p12.12 Budget Brief – Social Action, ILO/UNICEF, 2016. p713 McCord, Beazley, Solorzano & Artur. ‘Social Protection and Climate Change in Mozambique with a focus on the role of the PASP: Feasibility and design consultancy‘, OPM, p13 (May 2016)

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Need to strengthen the institutional capacity of the sector14 to deliver results at scale because despite advances, the availability of qualified human resources is not commensurate with the increase in the budget allocation and expansion of programmes.

Importance of new Standard Programme Operational Procedures, including a beneficiary registry system and electronic payment mechanism to improve the efficiency of programme implementation.

Need to avoid fragmentation. In recent years, the sector has been characterised by a very fragmented approach, with different donors and implementing partners supporting initiatives that have not been coordinated and therefore often not properly sequenced. It will be important to strengthen coordination between government, donors, UN agencies and others to better align the programmes and support.15

Limited reliable data. Beneficiary data has been made available through the existing MIS systems (LINDEX), however it was not possible to use the available data to corroborate whether services were targeting the most vulnerable. In addition, as programmes had different databases and there was no harmonised, integrated database and so duplications and exclusions were possible.

Proposed Joint Programme strategiesAs noted above, the sector, particularly in Mozambique, has been characterised by a fragmented approach (between donors, UN Agencies and government) and the ENSSB II provided an opportunity to improve alignment to deliver an ambitious set of targets. The Joint Programme builds on previous support to establish and develop a Social Protection Floor in Mozambique and is informed by the lessons learned noted above. The following strategies (i.e. ‘how’ results will be achieved) will guide implementation with support consisting of technical expertise, capacity building and financial and material support to strengthen the capacity of INAS and MGCAS to roll out social protection programmes in a more effective, reliable and accountable manner.

Specifically, the Joint Programme will incorporate the following:

Effective design of robust programmes that incorporate best practice and a nuanced understanding of the Mozambican context and requirements. The Government has endorsed a clear and comprehensive Strategy and the Joint Programme will provide the tools required for effective implementation. The Joint Programme will also ensure the inter-operability of key components, i.e. that the different elements of the social protection system are compatible and aligned.

Added value of a joint programme. The UN agencies involved will focus where their comparative advantage and technical expertise is greatest. The agencies involved are well placed to support the operationalisation of the ENSSB II given that success will require the achievement of results that go beyond the institutional boundaries of any one implementing partner. Through close collaboration and coordination the joint programme will maximise efficiencies and deliver high quality results.

Evidence generation on the effectiveness, efficiency and impact of social protection interventions. Solid evidence is needed to assess if the social protection interventions are achieving their desired objectives and, if in doing so, are effective and efficient ways to better address social exclusion, alleviate extreme poverty, and promote an inclusive society where development benefits the poorest and most vulnerable populations. Research and evidence will help ensure equity and non-discrimination in the identification of beneficiaries, and minimize inclusion and exclusion errors which render the system inefficient. This strategy will also enable the Joint Programme to assess i) the impact of the system on reducing exclusion, with a specific focus on some of the underlying reasons for exclusion from social protection policies and programmes including gendered dynamics; ii) the adequacy of transfers on tackling the challenges they are meant to address; and iii) the impact social protection schemes have on well-being.

Engaging in technical and political discussions amongst multiple sectors and at the macro level is crucial to scaling up social protection coverage. Social protection incorporates a cross-sectoral set of policies and programme. The agencies involved will support, engage and advocate for improved investment in the

14 The Development of a Social Protection Floor in Mozambique, ILO/UNICEF/WFP, 2015.P1815 Donor coordination mechanisms for key sectors, World Bank, 2017, p32

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provision of social protection interventions with key partners such as MGCAS and INAS, but also other relevant partners with whom the Agencies have a longstanding working relationship including in sectors such as health, nutrition, and have been actively working on advocacy for an enhanced basic social protection system in Mozambique with key policy makers and relevant stakeholders, such as Parliamentarians, journalists, academia and Ministry of Finance.

Efficiency of implementation and economies of transaction. The Joint Programme is fully aligned with government priorities and enables each agency to engage where they have a comparative advantage. The programmatic engagement of the agencies has been sequenced to ensure a logical approach that aligns support provided at a central level with follow up delivered at a provincial and district levels. In terms of transactions, given that the Joint Programme presents one results structure and modality, this will reduce the costs of coordination and negotiation and maximise programmatic coherence.

Strengthen capacity of key implementing partners. As there are not adequate trained personnel at a community or district level to support the levels of outreach and service provision required. This will include support to INAS’ organizational reform and definition of INAS’ “tecnicos” responsibilities and functions at district level.

4. Results frameworkThe interventions and results are fully aligned with the ENSSB II 2016-2024 and its operational plan 16 and further emphasize the unique nature of the ENSSB II, is that by moving beyond the provision of relief in a protective role, the ENSSB II has the potential to be truly “transformative” as it aims to address concerns of social equity and exclusion. The Joint Programme approach through complementarity and aligned implementation has the potential to advance substantial and meaningful improvements to the social protection sector in Mozambique. The Joint Programme will help create clear programmes, evidence for synergistic impact on child and family well-being, and build human capacity to enable government to address economic and social risks and vulnerabilities (i.e. cash and care). The results also contribute to the government’s Plano Quinquenal do Governo, regional frameworks like African Union’s “Social Policy Framework for Africa” and Southern Africa Development Community (SADC) Strategic Framework and Program for Action and to the Sustainable Development Goals.

The Joint Programme will follow the principles of the Universal Social Protection Floor (ILO Recommendation 202) and the strategic areas and principles of cooperation between the United Nations and the Government of Mozambique, as laid down in the recently endorsed United Nations Development Assistance Framework (UNDAF) for the period 2017-2020, and will guide UN interventions towards achieving Outcome 5 of such framework. The One UN Joint Programme on Social Protection will also contribute to the achievement of Sustainable Development Goals (SDGs) in Mozambique, with special focus on Goal 1 (End poverty in all its forms everywhere), Goal 2 (End hunger, achieve food security and improved nutrition, and promote sustainable agriculture), Goal 3 Ensure healthy lives and promote well-being for all at all ages) and Goal 10 (Reduce inequality within and among countries).

The Joint Programme has been structured around a coherent package of interventions, all of which are included in the ENSSB II, but where the UN agencies have the mandate, capacity and strong working relationships with government partners so as to further strengthen the social protection framework. Over the course of the programme (2017-2019), the two UN agencies involved (ILO and UNICEF) will work with partners at national, provincial and district levels to deliver the following results.

Impact

16 Annex 3 the costed activity matrix details the correlation between the 38 “strategic actions” of the ENSSB 2016-2024 and how the Joint Programme will support their implementation.

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By 2020, evidence based and coordinated programmes and capable human resources, effectively reach the most vulnerable segment of the populations

Outcomes

1. By 2020, clear programmes and policies designed to operationalize the ENSSB II 2. By 2020, robust evidence and clear advocacy on key components of the ENSSB II3. By 2020, strengthened MGCAS’s capacity to coordinate and implement the ENSSB II.

The Joint Programme has been designed and structured around a set of core results that are critical to operationalizing the ENSSB II. Outcome 1 focusses on the design component; it includes the procedural work required for the new revised programmes in addition to establishing e-INAS and M&E system. Outcome 2 focusses on generating data and evidence to inform advocacy efforts, policy work and potential programme scale-up. Finally, Outcome 3 focusses on the implementation and capacity development necessary to operationalize the new social protection programmes.

1. By 2020, clear programmes and policies designed to operationalize the ENSSB II

Mozambique has made good progress in developing its social protection coverage, however the programmes need to be adjusted as with the approval of the ENSSB II (2016-2024) the Government committed to move to quasi-universal categorical schemes. PSSB will include 3 different targeting interventions: 1) Child Grant (along principles of cash and care) 2) Old Age grant and 3) Disability and chronic and degenerative disease grant. In addition, the PASD will be redesigned and streamlined in order to simplify eligibility criteria and package of assistance while incorporating support for families facing weather related shocks, and, the PASP will be refined to ensure that components of Public Works better support income generation and enable families to be more resilient to climate change.

Under this outcome, the Joint Programme will support the development of comprehensive, clear programmes, tools and operational processes to enable implementing partners to operationalise the ENSSB II.

Output 1.1 focusses on ensuring that new programmes are designed, as part of one process for all the programs in the ENSSB II, including the new component in the PASSB such as the Child Grant, and the revisions to the Old Age and Disability programmes. 17

One of the critical characteristics of the new ENSSB is that it is child-sensitive and seeks to increase the wellbeing of children such as health, nutrition and protection in Mozambique. The evidence is clear that social protection interventions delivered to children in a developmental manner have the potential to effectively promote both economic growth and social equity in a meaningful and sustainable manner. Furthermore, early interventions during crucial developmental stages generate the highest returns on this investment.18 The ENSSB II includes a Child Grant targeting a) children aged 0-2 years, known as the ‘Subsídio de Primeira Infância’ or early childhood allowance, b) child-headed households and c) orphaned children in poor households.

The Joint Programme (UNICEF) will support the Government of Mozambique (MGCAS and INAS) for developing the child grant component, finalizing the design and test it in at least 2 districts in one or two provinces that meet following conditions: High level of poverty and vulnerability; High level of malnutrition, following particularly stunting and wasting indicators; Basic conditions at province and district level for delivering it (enough capacity of authorities, basic communication infrastructure, etc.)

17 This work will be informed by the Background Papers being developed by ILO (Old age, Disabilities), UNICEF (Child Grant) and WFP (PASD-Emergencies) supported by SIDA as part of extension phase of existing UNJP on Social Protection.18 “Advocating for government led child sensitive social protection in Mozambique”, EPRI, p3 (2015)

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The ENSSB II, including the child grant programme, are based on a scheme of ‘Cash & Care’19 recognizing that cash is not enough to generate accelerated positive results for children. Given that the grant is time-bound (only two years), the design of the child grant will need to find the right modality for quick registration of beneficiaries, almost real time monitoring system, and effective payment modalities. An impact evaluation of the pilot will be conducted that compares beneficiary groups on cash and care, and household control groups to guide MGCAS in the scale up of the Child Grant. The impact evaluation will look at wellbeing outcomes on children within the time of the grant as well as provide information on the process implementation of the grant and its efficiency and effectiveness. Quantitative data collection will include: baseline before the grant starts, after year one, after year 2, plus qualitative data collection on program implementation. The baseline and data collected during the first two years starting phase will provide important information to assess long term impact.

The first 2 years of a child’s life offers a unique window of opportunity to invest in the cognitive development of the child as to promote positive behaviour-change related to adoption of positive nutrition practices, and to ensure the allowance is complemented by health, nutrition and protection counselling.

In order to develop the child grant the Joint Programme (UNICEF) will support MGCAS in a detailed work plan to be finalized by 6 weeks of the UNJP signature. A specific technical working group will be created for this purpose.

A model of cash and careSocial cash transfers have emerged as a primary policy tool across sub-Saharan Africa in the fight against poverty and hunger, and often aim to increase investments in human capital. These programs are motivated by the premise that income poverty has highly damaging impacts on human development, including child development, and that cash empowers families living in poverty to take decisions on how to advance their lives. They have proven effective in improving such things as household food security, consumption, productive activities, aspects of women’s empowerment, and secondary school attendance rates. Yet despite their promise, it is important to realize that social cash transfers alone are rarely, if ever, sufficient to overcome the broad-based and interrelated social and economic risks and vulnerabilities targeted populations face. In fact, an expanding evidence base highlights that the provision of cash in isolation falls short in achieving long-term second-order impacts such as on nutrition or educational outcomes (sources).

The ENSSB II, including the child grant, is therefore based on principles of ‘cash and care’. As a result, UNICEF will, beyond the scope of the UNJP, support MGCAS in strengthening inter-institutional and community-based mechanisms and coordination structures for case management, to ensure a continuum of care and access to basic social services, adding to the transformative potential of programs. The approach will require linkages to social welfare services and a skilled and well-resourced social welfare workforce to identify vulnerable children and families, and deliver and coordinate subsequent care and support (e.g. birth registration, health, nutrition, education, child protection). The approach will be piloted and rigorously evaluated in the context

In terms of the old age grant and disability grant, ILO will support the redesign of these components. For the PSSB-old age programme, ILO will support the modification of current eligibility criteria for access of the elderly to establish 60 as the minimum age of eligibility for men and women, as defined in the ENSSB II. In addition, economic criterion will be applied to the household in which the beneficiary lives and automatic administrative mechanisms to cross-check information with other national systems will be established to avoid duplications. In terms of the PSSB-disability component, ILO will support the design focusing on reviewing the definition of the Eligibility Criteria for Disability Allowance for Children and adults up to 59 years old.

19 For information on the ‘care’ component, see below in case management.

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The design work also provides an opportunity to explore alternative payment mechanisms. Currently, the payments process is highly inefficient. An Oxford Policy Management (OPM) study detailed that “payments were found to be regular and reliable in some, but not all instances, and were found generally to be less frequent than indicated in the manual of operations and as required by good practice. Technicians from INAS drive from district headquarters to communities to pay benefits in cash and each payment involves INAS’s technicians, police and a vehicle, with substantial costs in terms of daily subsistence allowances and fuel .”20 The consequence of this burdensome, expensive and time-consuming payment process is that there are often few remaining resources, or time, left for other activities. UNICEF and INAS will build on the World Bank’s review of different approaches, to look at both the cost efficiencies of the different payment mechanisms (e.g. payments via either cards or mobile phones or a mixed approach), and the influence on consumption behaviour.

Following the design phase, operational manuals and procedures will be developed to provide detail on how these programmes will be rolled-out. The manuals and procedures will detail how new beneficiaries will be selected and targeted, registered, the role of local offices, grievance mechanisms, etc. The manuals and procedures will also provide any required detail on the overall inter-operability between key programmes to ensure alignment and functional efficiency. For the PASP, the graduation component will be further developed, including the development of an operational manual for graduation interventions; for the PASD and PSSB there will be significant modifications required to the existing manuals. UNICEF will contract a consultancy company to review the schemes that comprise the ENSSB II, and prepare and finalise a comprehensive operational manual and associated guideline for each scheme by 2018, having ILO providing technical oversight for the PSSB-old age and PSSB-disabilities programmes. A costed plan for re-registration will be developed based on the upcoming operation decree and its revised targets and inclusion criteria. The costed plan will identify the most effective modalities to migrate beneficiaries into the new IMS system.

Output 1.2 will support the design of programmes for social welfare services and Social Units . The Social Action Policy – the overarching policy document within with the ENSSB II is situated – covers the provision of all social action programmes. In the context of designing new (ENSSB II) programmes it is important to look at existing services and identify gaps and areas to be strengthened.

Finally, output 1.3 covers the design of a comprehensive M&E system for SP programmes in Mozambique, supported by ILO. Given the availability of robust data to guide policy decision making and programming has been limited the weak and fragmented data available on INAS’s programmes, ILO will support INAS to ensure an effective monitoring and evaluation system is put in place to collect evidence on the impact of social protection and on analyse the functionality of some social protection instruments to feed into policy making and improved implementation. ILO will also support the design and development, at central and decentralized levels, of a comprehensive, integrated and effective Monitoring and Evaluation System for basic social protection programmes.

2. By 2020, robust evidence and clear advocacy and communication on key components of the ENSSB II

Investments in evidence building and impact analysis are needed in order to be able to advocate that social protection interventions are an effective and efficient way to alleviate poverty and promote social inclusion. Furthermore, evidence generation on the effectiveness, efficiency and impact of social protection interventions, and the issues those interventions aim to address, is critical for scaling up investment. At the same time, evidence on poverty and vulnerability must provide the context for understanding the needs that underlie a social protection system, and the extent to which the system is child-sensitive. Research and evidence will help ensure equity and non-discrimination in the identification of beneficiaries, and minimize inclusion and exclusion errors which render the system inefficient and unjust.

20 McCord, Beazley, Solorzano & Artur. ‘Social Protection and Climate Change in Mozambique with a focus on the role of the PASP: Feasibility and design consultancy‘, OPM, p13 (May 2016)

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Output 2.1 Specifically, the joint programme will generate evidence on the implementation of key programmes. The joint programme will document the direct and indirect impact of social grants through impact assessments of the various programmes (ILO on the Old - Age grant and Disability grant, and, UNICEF on the Child Grant). The two evaluations, despite being different due to program nature implementation and methodology, will both contribute to the assessment of the impact of the ENSSB The agencies will ensure a feedback loop is in place to inform key decisions around programme design parameters (e.g. targeting methodologies, transfer levels, graduation strategies, etc.) and to feed into advocacy efforts (see below), ongoing policy dialogue and the operationalization of programmes. This will include a strategic approach based on validation process and policy dialogue modalities in using the results of different impact evaluation and research, and guarantee that both positive and less positive results can be used for continuous revision and improvement of the programmes.

UNICEF, in close collaboration with ILO, will also conduct an equity and exclusion error analysis to look, in particular, at the capacity of the new social protection programs to target the increased disparities registered in the country across different domains: by consumption, geographical areas, gender, rural-urban etc. 21 Currently, minimal data is available on the extent to which exclusion errors exist, and it is possible that the current programmes and payment modalities are creating significant barriers to access, i.e. that those who should benefit from social protection are excluded because overly cumbersome and complex processes. The Joint Programme will ensure nobody is systematically excluded and, furthermore, that the most vulnerable are reached. UNICEF and ILO will support INAS to ensure that the programmes are designed to minimise barriers and maximise efficiency, and this might include, for example, minimising the documentation required. In line with the revision of the Operational Manuals, this work will be delivered by 2018. The equity analysis will guide the prioritization of interventions and their design and adjustment of programmes. The equity analysis will be the core element for the assessment of impact of social protection on multidimensional poverty.

Output 2.2 In terms of advocacy related to strengthening key programmes, this will be informed the evidence generated on programme implementation and impact. ILO will support an intensive advocacy with policy makers, civil society, media, journalists, academia in order to increase fiscal space i.e. financing dedicated to basic social protection programmes. ILO will support specific PFM advocacy objectives aiming at issues such as annual increase of transfer amount with regular adjustments to maintain purchasing power of beneficiaries and compensate for effects caused by inflation; increase budget allocations to expand the coverage of social protection services or programmes for children, the elderly and persons living with disabilities. UNICEF will facilitate the links with research forum to engage with national and international academic and research institutions, NGO and donors to promote and share independent and multi-disciplinary research on social protection in Mozambique.

For the last ten years, ILO and UNICEF have supported the development of sector-specific Budget Briefs (for Health, WASH, Education and Protection). These briefs provide a succinct analysis on the sector budget so as to provide universal access to budgetary information and increase transparency of existing public instruments used for budgeting, planning and social policy. In addition, UNICEF also reviews the overall State Budget every year to analyse priorities and allocations. Finally, UNICEF has a Memorandum of Understanding with the international NGO ‘International Budget Partnership’ to collaborate to ensure the provision of budget analysis and advocacy as a tool to improve effective governance and reduce poverty.

Output 2.3 A specific communication strategy will be designed to support the implementation of ENSSB II, producing communication and information material, and supporting effective dissemination and use. It will promote better understanding of the programme and its components, the entitlement approach, as well as modalities to have access to each component. It is essential to make the targeted beneficiaries aware of social protection schemes, benefits, and procedures to register for schemes and avail benefits. A proper communication strategy and implemented activities will be instrumental in facilitating the access of the most 21 An exclusion error is defined as the proportion of those eligible for a social protection program but who are excluded from it as a result of inaccurate targeting. An inclusion error is defined as the proportion of those selected for a program who are not eligible for it.

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excluded part of the population to the programmes. Civil Society will be engaged in ensure that there is a proper understanding of programmes, knowledge of the modalities, as well as dissemination of the research generated, and promotion of the recommendation.

3. By 2020, MGCAS capacity to coordinate and implement strengthened

Despite the focus on and support to the social protection sector in recent years, further investment is required to build an effective, transparent and efficient system, and advocacy to raise support and awareness throughout Mozambican society, to ensure a long term, sustainable implementation of social protection programmes. Operational challenges include the need to strengthen institutional capacity as the availability of qualified human resources is not commensurate with the increase in the budget allocation and expansion of programmes.

This outcome will operationalise the newly designed programmes and ensure that the capacity to deliver timely delivery of social protection services is strengthened. Capacity development will focus on technical, managerial, technological and material capacity of government institutions responsible for programme delivering. The Joint Programme will reinforce coordination mechanisms between key stakeholders involved in responding to individuals and families at risk, including with INGC, SETSAN and INAS/MGCAS, through improving institutional and programme level coordination within the social protection sector and between social protection and other social sectors, including ensuring that basic social services are accessible to the most vulnerable.

In Output 3.1 the Joint Programme will test and implement some of the new programmes. In terms of testing and implementing the child grant targeting 0-2 year-olds, UNICEF will support the implementation and assessment in 2018/19. The first phase will be rolled out by government (MGCAS and INAS) with the technical support of UNICEF in a reduced number of districts supporting children with transfers to their mothers/caregivers). The development of this new modality, including target district, beneficiaries and amount to transfer will be discussed and agreed with Government for having a predesign under PSSB and align with other modalities of the Programme (elderly and disabled).MGCAS and INAS will implement the grant using as possible current structures identifying process and modalities that will address the specific requirement of the 0-2 subsidy in particular: rapid and continuous enrolment of new born, frequent and regular payment, regular care and monitoring; smooth transition at the end of the 2 years, ability to reach the most excluded segment of the population, simplification of process. The intervention will combine cash and social support for beneficiaries. High level standards on delivery of the grant and beneficiaries' support is also, a requirement. UNICEF will provide additional technical support, assistance and closely follow the piloting. During the first year children will be enrolled starting with children under the age of one and new born ones.

Based on the ENSSB II’s operational plan and lessons learned from implementation of this first phase, the programme will be scaled up. The UNJP will cover the cost of the transfer for around 10,000 children per month during the 2 years of the program. Given the dynamic nature of the grant with regular inflow and outflow of beneficiaries the total number of children enrolled during the 2 years will be larger (estimated 14,000). Details on the amount of the transfer, enrolment flows of children per months and detailed workplan of the child grant will be finalized during the inception phase of this programme. An internal Government technical group composed by DNAS, DNC, INAS as well as MISAU-nutrition will support the definition of all the design process. Government support to transfer is planned to start during the second year of the program, increasing the number of beneficiaries up to government targets and supporting children beyond the validity of the UNJP.

Finally, output 3.2 will focus on ensuring that national Social Protection systems is strengthened so as to ensure effective implementation. Central to INAS’s ability to monitor and coordinate implementation of the ENSSB II programmes is to ensure a fully functional Management Information System (MIS), known as e-INAS, that reflects the requirements of the new ENSSB. e-INAS was developed over the last 2 years by ILO and

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UNICEF in collaboration with CEDSIF and INAS22, and is functional and hosted by CEDSIF. However, with the approval of the new ENSSB, the software needs to be updated and adjusted. ILO will support the adjustment of the e-INAS according to the new programmatic operational procedures and rules. All operating aspects of targeting, formal enrolment in the programmes, payment modalities, case management and referrals, grievance mechanisms, as well as monitoring and evaluation methodologies will be updated and adjusted to ENSSB II requirements, ensuring all beneficiaries are managed accordingly to the new operational procedures and rules by the end of 2018. This work will be carried out in tandem with the redesign of the Programme Manuals (output 1.1 described above) to ensure the programmes address all possible bottlenecks in implementation and monitoring/information management and to simplify the overall process to the extent possible.

Another important aspect of strengthening MGCAS and INAS’s is to ensure staff are fully trained. This will be key to ensuring e-INAS is fully functional but it training and capacity building also applies other areas as well. Trainings workshops will cover orientations in the new manuals, operational procedures payment modalities and case management as required. A training plan and methodology will be developed and materials available to INAS staff (electronically and printed) to facilitate their follow-up after the training sessions. The training component will be led by the agency responsible for the content but in close coordination and with inputs, as appropriate, from other agencies. Training will be provided to MGCAS and INAS HQ as well as Delegation-level staff.

Related to that, more specifically, the ILO will support: reinforcement of INAS and MGCAS planning departments to enhance their capacity, including design and implementation of adequate, specifically designed planning and budgeting tools; capacity building of key stakeholders (MGCAS, INAS, MoF, INE) in the area of economic modelling, forecasting and economic analysis for the social protection sector, with a view at exploiting existing survey and administrative data to inform discussions on benefit levels, pace of coverage expansion, fiscal space; and support the improvement of budgetary planning mechanisms of multiform support under PASD in response to situations of specific shocks and natural disasters.

The ILO will also support INAS and MGCAS with institutional and organizational reforms that are necessary to expedite the implementation of the ENSSB II, particularly the decentralization of INAS capacity to district level and the introduction of the new category of Social Action Agents.

Specifically at the Delegation level, UNICEF will complete the physical rehabilitation of remaining delegations not covered by previous interventions, and will provide local monitoring and technical support to the implementation of the strategy and new operation manuals. UNICEF will ensure coaching and mentoring support are available in addition to technical support related to new programme rules, targeting, information management systems, alternative payment modalities, public finance management (PFM), and coordination mechanisms with other institutions, M&E and case management.

In terms of gender equality, the human rights-based approach to social protection requires that the differences in the experiences of men and women are factored in the design, implementation and monitoring of the social protection programmes. At the onset of the joint programme, a comprehensive gender disaggregated analysis of secondary national data will be undertaken to clearly understand the roles/status of men and women in the family. This will ensure that the eligibility criteria used in selecting the beneficiaries of the programmes are gender-sensitive and will consider not only the household income, but also the intra-household distribution of resources that may disadvantage women, in particular girls and older women. The monitoring and evaluation mechanisms will also incorporate gender-disaggregated indicators to assess and improve programmes’ ability to take women’s voices into account

Specifically under outcome 2, the joint programme will also produce Evidence-based Communication for Development (C4D) materials that promote gender equality including targeted advocacy/upstream strategies for policy makers. This will also include supporting awareness-raising, implementing C4D interventions with a gender and vulnerability analysis to address social exclusion, education, and communication initiatives so that women with limited education and access to information are aware of the services and programmes that

22 With financial support from SIDA.

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exist to help them and their children. Quality interaction with men is an important programme component through C4D so as to incite enhanced accountability towards their roles as equal caregivers.

5. Programme ImplementationIn terms of overall implementation, the Joint Programme’s implementation will be guided by the following documentation:

1) The Joint Programme Document;2) Standard Administrative Agreement. Between each bilateral donor and Administrative Agent, normally

follow constitution of the Steering Committee.3) Memorandum of Understanding between the Participating UN Organisations (ILO) and the

Administrative Agent (UNICEF); 4) Annual work-plans, prepared by each PUNO and assembled by the CA is signed by the chairs of the

Steering Committee and submitted by the AA for transfer of resources

Management and coordination arrangementsThe Joint Programme will use a ‘pass through’ modality. This was selected based on the experience in the past as to achieve the most effective, efficient and timely implementation, and to reduce transaction costs for national partners, donors and the UN. This modality keeps overhead costs to a minimum (8% - 1% incurred by the Administrative Agent, 7% by each PUNO) whilst also providing the most efficient way of managing multiple donor contributions (for additional information on the fund management arrangements see next section below).

The Joint Programme will be overseen by a Steering Committee responsible for strategic guidance and oversight chaired by the Ministry of Gender, Children and Social Action and co-led by the UN Resident Coordinator. The members of the Steering Committee will comprise of representatives from MGCAS, MEF, ILO, UNICEF, and donor partners to this Joint Programme. The Committee will meet twice a year to fulfil its role and responsibilities documented in the Terms of Reference.

In addition, a Joint Programme Coordination Group will provide technical and operational direction for agreed priority actions or adjusting implementation as needed. The Coordination Group members will be able to identify and recommend actions that have substantial impact when implemented and will complement to the SAWG (see below). The scope of discussion would be upon the Joint Programme supported activities and may include related parallel support given for the same actions for better clarity and transparency. The group will plan to meet quarterly or more frequently as circumstances may require. The (CA) will coordinate the organization of meetings with the Chair and minute the discussion and decisions.

Roles and ResponsibilitiesIn terms of the implementing UN Agencies, all have collectively and separately been working in the social protection sector in Mozambique for over a decade. They bring technical specialist expertise and knowledge together with a nuanced understanding of the Mozambican context.

ILO has extensive experience supporting policy design and costing policy options, specifically related to social protection, and played a key role supporting the design of the ENSSB II. They have worked closely with MGCAS and CEDSIF to support e-INAS and have been actively assisting the Mozambican Government's efforts to promote the extension of social protection to the excluded populations through advocacy and analytical work.

UNICEF has played an important role enhancing the managerial capacity of government with new business models, and coordinating efforts to enhance transparency and accountability and reduce the administrative workload in social protection programmes. UNICEF also works closely with MGCAS and INAS to support an integrated response to vulnerable households (i.e. case management).

The two agencies will meet on a monthly and ad-hoc basis to jointly plan and work together towards the undertaking of the jointly agreed activities in support of Government. The UN agencies will regularly meet

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with the WB to ensure all programme activities and system building is jointly planned and coordinated, around the PASP programme and INAS’ systems strengthening in particular. The Joint Programme on social protection will serve as one of the core packages of technical, financial and material support to the operationalisation of the ENSSB II and will inform the Social Action Working Group (SAWG) and report to the Steering Committee (noted above).

The Social Action Working Group (SAWG) is led by the Ministry of Gender, Children and Social Action and consists of partners from other line ministries, INAS, UN Agencies, Development Partners, World Bank, national and international civil society organizations. This Group meets on a quarterly basis to plan, coordinate and monitor the support from all interested parties in terms of the operationalization of the ENSSB II, and any other technical issue related to the implementation of ENSSB and programs with MGCAs and INAS. MGCAS calls for these meetings to request input into the annual ministerial plans and solicit the planned contributions to the sector for government to document the support that comes in on-budget, off- budget and through provision of technical and financial support and to be able to coordinate the various interventions. The Social Action National Council (CNAS) was put into place in 2016 by a Decree and has given the authority to the Prime Minister to oversee the implementation of the ENSSB II. This new body needs to be set up and become operational. At INAS’ level, there is a coordination group working to support of basic social protection programmes, the so-called “Grupo de Acompanhamento”. This group, established in 2008, and led by INAS with participation from MGCAS and ILO, DFID, Dutch Embassy, UNICEF, WFP and the WB to coordinate the support to INAS at all levels. This group has become expanded and the composition might have to be reviewed as well as other components of the aid architectural framework for the implementation of the ENSSB II. The support to this restructuring of the governance systems is envisaged to be part of the Joint Programme support package.

Fund Management arrangementsThe specific modality being proposed is a UN Joint Programme ‘pass-through’ mechanism, which includes the roles of an Administrative Agent and Convening Agent.

Administrative Agent (AA) is accountable for effective and impartial fiduciary management and financial reporting. The AA receives donor contributions, disburses funds to each PUNO based on Steering Committee instructions, and prepares the official, certified financial statements for donors. Within this Joint Programme, UNICEF will act as Administrative Agent.

Convening Agent (CA) is accountable for coordination among participating organizations and for consolidating narrative reporting. The CA coordinates the joint programme partners, compiling annual work plans and narrative reports, coordinating monitoring of annual targets and facilitating any audits or evaluation. For this Joint Programme, UNICEF will serve as the CA and ensure agreed functions are fulfilled. A National Programme Officer (NOC) will support coordination between the agencies, with key partners and with field-based positions, fostering collaboration in planning and documentation between the two PUNOs and coordinate the mitigation measures (see below) between PUNOs and implementation partners.

ILO and UNICEF are the participating UN agencies in this Joint Programme who will receive funds to support the government in line with this proposal. The agencies will operate in accordance with their own guidelines, regulations, rules, directives and procedures in commissioning the work that will be done in the context of this Joint Programme for which the two participating agencies will assume full programmatic and financial accountability for the funds pledged by the Development Partners. The transfer of funds between AA and PUNOs will follow the allocation noted below in this Programme Document (Annex 3). Annually, the Steering Committee (see Annex 6, project cycle) will endorse or amend the allocations and, based on the instructions from the Steering Committee, the AA will make the appropriate disbursements. In line with the standard MoU that guides a Joint Programme, neither AA nor the CA has accountability for the financial or programmatic decision of the participating UN agencies. For reporting purposes, each programme year will end the last day of May. Disbursement forecast/plan is describe in the Annex 9.

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Financial risk managementThe UN agencies will identify and adopt actions to mitigate the effects of internal or external factors that might impair the achievement of expected results (see Annex 2 for additional information). The identified risks will regularly be monitored and assessed and corrective actions taken as the need arises and reported in progress reports.

Given the current financial context one of the key concerns is around mitigating the risks associated with using government systems to channel resources. This issue mostly concerns UNICEF given that ILO doesn’t provide significant funds to government or other partners but provides technical assistance or fund very specific activities (seminars, provincial consultations, etc.) that it is involved in. ILO doesn’t disburse funds on a regular basis for government entities to implement activities.

UNICEF, however, does provide significant resources to government for the implementation of agreed activities. In terms of how funds flow, UNICEF provides funds directly to a UNICEF-specific, province-level government bank account. Disbursements to these accounts are based on a detailed request that is tied to/ earmarked for specific activities. Funds are disbursed for three months of activities and must be reported on (‘liquidated’) within the next three months or else subsequent payments are blocked. Following disbursements, UNICEF carries out regular programmatic field monitoring visits and, in addition, government accounts are regularly spot checked which involves an on-site review of the partner’s financial records related to the funds provided.

With regards to how we assess the strength of the government’s public financial management (PFM) systems, as a part of the Harmonised Approach to Cash Transfers (HACT) framework, adopted by UNICEF, a macro assessment is carried out at the beginning of a new Country Programme cycle. This assessment is used to ensure adequate awareness of the PFM environment within which agencies provide cash transfers to implementing partners. A macro assessment is not limited solely to the financial environment but also includes national procurement capacity, exchange rate volatility, presence of informal/black markets, etc. The two primary outputs of the macro assessment are:

An outline of risks related to the use of the PFM for cash transfers to government IPs within the country (individual IP risk is determined through the micro assessment), as well as other country-specific knowledge for non-governmental IPs, such as environmental conditions, exchange rate volatility, presence of black markets, etc.; and

A determination on whether the government’s supreme audit institution (SAI) has the capacity to undertake the scheduled and special audits of government IPs.

In order to ensure funds are used for the intended purposes, HACT allows agencies to manage the potential risks involved in implementation by partners (central, provincial, district-level government partners in addition to various international and national NGOs). UNICEF’s process for selecting civil society implementing partners is rigorous. They are screened on the basis of their technical competencies after which their core values and expertise is screened by either UNICEF HQ (for international NGOs) or the Country Office. UNICEF makes disbursements to implementing partners based on signed work plans and expenditure statements submitted every three months. All implementing partners are subject to a micro assessments by a reputable audit firm when they receive more than $100,000. Implementing partners are also subject to audit, for UNICEF if they receive more than $500,000 during a County Programme.

The micro-assessment provides an overall assessment of the Implementing Partner’s programme, financial and operations management policies, procedures, systems and internal controls. It includes a review of their legal status, governance structures and financial viability; programme management, organizational structure and staffing, accounting policies and procedures, fixed assets and inventory, financial reporting and monitoring, and procurement. The micro-assessment focusses on compliance with policies, procedures, regulations and institutional arrangements that are issued by the Government and the Implementing Partner resulting in a risk rating (low, moderate, significant, high).

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Based on the micro-assessment, UNICEF determines which payment modality is suited to the partner (direct cash transfers, direct payments, and reimbursement) and frequency of assurance activities:

Spot checks of the Implementing Partner’s financial records for provided cash transfers, by the agency or an audit firm, carried out on a routine basis, or when warranted due to concerns about the functioning of a partner’s internal controls for cash transfers.

Programmatic visits of activities supported by cash transfers—following Agencies’ standards and guidance for site visits and field monitoring.

Scheduled audits of Implementing Partners’ financial management systems.

If an implementing partner’s capacity is lower than expected the PUNO will review the payment modality (direct cash transfers, direct payments, and reimbursement) and may change modality to reduce the risk of non-delivery by the partner. In addition, UNICEF look to assist the implementing partner to build their capacity in areas that are relatively weak in order that they reach an acceptable level. This might involve PUNO staff working directly with an implementing agency to strengthen certain areas, as appropriate.

Finally, special audits are undertaken with the approval of the Representative, based on the initiation of the programme sections and recommendation of the Deputy Representative and Chief Operations. Long-term agreements with audit firms are established and available to UN agencies to deliver special audits at short notice to address specific suspected identified weaknesses within the internal control system of the implementing partner.

Finally, if the agency discovers that funds were misused, then the implementing partner would be held accountable. If the misuse relates to the submission of ineligible expenditures, the partner would be requested to reimburse the funds and additional assurance activities/ safeguards would be put in place to avoid further instances. However in the event more serious irregularities are identified the partner could be asked to cease activities (with UNICEF funds) pending a special audit to identify the nature and scope of the misuse.

In terms of disbursing funds to Government, for ILO, the situation is different, as ILO do not disburse significant funds to government but finance Technical Assistance or specific activities. In the limited instances where ILO do disburse funds to government they would be directly involved in the conceptualization and delivery of the particular activity.

6. Monitoring, evaluation and reportingThe Joint Programme will be monitored through a joint M&E system that will be developed together with the government and development partners. There will be official joint review meetings, involving Government, UN and donors, to review progress ahead of the disbursement of the next tranche of funding.

Between the UN agencies involved there will be an internal Joint Programme M&E system to monitor and evaluate if and how the program reached its planned objectives23, in particular it will focus on major questions, for example, asking if the Joint Programme reaching its expected outcomes in terms of effectiveness of remodelling, knowledge and advocacy, system strengthening.

The internal M&E system will:

Identify key performance indicator to effectively monitor the implementation of the program in its 3 outcomes: remodelling, knowledge and advocacy, system strengthening.

Monitor the implementation of all the activities and their sequencing. Monitor the level of implementation at decentralized level (Delegations) Organizing the exchange of information among the agencies and donors creating an interactive,

online repository system

23 This is different from the M&E system developed to monitor the results of the ENSSB II.

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Receive information from other player’s activities (such as the WB or donors) and inform the UN agencies.

Facilitate the identification of possible synergies at research and data collection level. Prepare information to be shared at the SAWG.

On a higher level, evaluations will look at the following key issues related to the program:

the impact of the system on reducing exclusion, with a specific focus on some of the underlying reasons for exclusion from social protection policies and programmes;

the adequacy of transfers on tackling the challenges they are meant to address; the impact social protection schemes have on well-being

A series of evaluations will be carried out by the end of 2019 to guide the scaling up of the programs. A combination of formative and summative evaluations will provide detailed information on the areas were the programs are having major impact, and the ones that may require further adjustment. The evaluations will look at the possible impact of the UNJP in terms of questions such as: Is the targeting more accurate? Are exclusion/inclusion errors addressed? Are the payments more regular? Is the geographical targeting based on transparent criteria? In order to support such an evaluation a baseline of related key elements, particularly related to Outcome 3, will be done at the beginning of the programme.

External consultancies will be activated to cover specific M&E aspects (cost efficiency analysis, impact assessment, formative evaluation etc.)

7. Legal context or basis of relationship

Each of the UN agencies involved in the implementation of this Joint Programme do so based on existing legal agreements approved and endorsed by the Government of Mozambique.

For ILO, a Standard Basic Framework Agreement signed in 1976 between the Government of Mozambique and UNDP. ILO,

For UNICEF, a Basic Cooperation Agreement was signed on the 2nd May 1996 with the Government of Mozambique.

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