FISCAL AND ACCOUNTING SYSTEM OF TUNISIA (FAST) …

This publication was produced by the Fiscal and Accounting System of Tunisia (FAST) Project under Contract No. 7200AA18D00008/72066420F00001

at the request of the United States Agency for International Development. This document is made possible by the support of the American people through the United States Agency for International Development. Its contents are the sole responsibility of DAI and do not necessarily reflect the views

of USAID or the U.S. Government.

FISCAL AND ACCOUNTING SYSTEM OF TUNISIA

(FAST)

MONTHLY REPORT NO. 7

August 2020

This publication was produced by the Fiscal and Accounting System of Tunisia (FAST) Project under Contract No. 7200AA18D00008/72066420F00001

at the request of the United States Agency for International Development. This document is made possible by the support of the American people through the United States Agency for International Development. Its contents are the sole responsibility DAI and do not necessarily reflect the views of

USAID or the U.S. Government.

FISCAL AND ACCOUNTING SYSTEM OF

TUNISIA (FAST)

MONTHLY REPORT NO. 7

August 2020

Program Title: Fiscal and Accounting System of Tunisia (FAST) Project

Sponsoring USAID Office: Middle East Regional Platform (MERP)

Contract Number: 7200AAI8D00008/72066420F00001

Contractor: DAI Global, LLC

Date of Publication: September 15, 2020

Author: FAST Team

USAID.GOV FAST AUGUST 2020 MONTHLY REPORT, NO. 7

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CONTENTS

CONTENTS 1

ACRONYMS AND ABBREVIATIONS 2

EXECUTIVE SUMMARY 4

OBJECTIVE I: ENHANCED CAPACITY OF GOT TO MANAGE PUBLIC FINANCES 5

SUMMARY 5

RFI APPORVAL 5

PFMIS WORKING GROUPS DESIGNATION 5

DEBT MANAGEMENT SYSTEM (SIADE) ASSESSMENT 6

CIMF - IT INFRASTRUCTURE ASSESSMENT 6

MOF TRAINING OF TRAINORS (TOT) 6

CHALLENGES 7

OBJECTIVE 2: ADVANCED REFORMS IN THE BUSINESS CLIMATE 7

SUMMARY 7

PROGRESS RELATIVE TO THE WORKPLAN 7

E-SERVICES PRIORITY REFORMS 7

MOF WEBCASTING COMMUNICATION TOOL 8

CHALLENGES 8

OBJECTIVE 3: IMPROVED COMMUNICATIONS, ENGAGEMENT AND

CONSULTATIONS BETWEEN GOT, PRIVATE SECTOR, AND CIVIL SOCIETY 8

SUMMARY 8

ENTRY POINTS MAPPING DEVELOPMENT 9

COMMUNICATION ENGAGEMENT WITH THE MOF 9

GRAPHIC DESIGN TRAINING CURRICULUM 9

CHALLENGES 10

OPERATIONS & MANAGEMENT 10

REPORTING 10

OPERATIONS 10

PROCUREMENT 10

HR ACTIVITIES 10

ACTIVITIES FOR NEXT MONTH 10

OBJECTIVE 1 10

OBJECTIVE 2 11

OBJECTIVE 3 11

OPERATIONS & MANAGEMENT 11

APPENDIX A. KEY STAKEHOLDERS MEETINGS 12


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ACRONYMS AND ABBREVIATIONS

ABC Arab Banking Corporation

ARP Assembly Representative of the People

BEE Business Enabling Environment

BI Business Intelligence

BPM Business Process Management

CLA Collaboration, Learning and Adapting

CIMF Computer Center of the Ministry of Finance

COPIL PFMIS Steering Committee

CoP Chief of Party

CoR Contractor Officer Representative

DAI DAI Global LLC

DGCPR Directorate General of Public Accounting and Collection

DGI General Directorate of Taxes

EF Expertise France

ENA National School of Administration

EPMT Entry Point Mapping Tool

EY Ernst and Young

FAST Fiscal and Accounting System of Tunisia

FIRST Fiscal Reforms for Strong Tunisia

FY Fiscal Year

GD General Directorate

GoT Government of Tunisia

HO Home Office

HR Human Resources

IT Information Technology

ITIL Information Technology Infrastructure Library

IPTT Indicators Performance Tracking Table

JOBS Jobs, Opportunities and Business Success

KfW German Development Bank

LCP Local Compensation Plan


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MEL Monitoring, Evaluation and Learning

MoF Ministry of Finance

MPH Ministry of Public Health

MTBF Medium Tern Budget Framework

OBL Organic Budget Law

PFMIS Public Financial Management Information System

PFM Public Finance Management

PMGI Performance, Management, Human Resources & Innovation

PMP Project Management Professional

RfI Request for Information

SIADE Support System for External Decisions

SoW Scope of Work

SCU Strategic Communication Unit

TAMIS Technical and Administrative Management Information System (of DAI)

TIA Tunisian Investment Authority

TO Task Order

ToT Training of Trainers

USAID United States Agency for International Development

UXP

USAID.GOV FAST AUGUST 2020 MONTHLY REPORT, NO. 7 | 4

EXECUTIVE SUMMARY

Following the resignation of the previous prime minister Elyes El Fakhfakh on July 15th, the President of the

Tunisian Republic, Mr. Kais Saied nominated Mr. Hichem Mechichi as the new prime minister to form a new

government. On August 24th, Mr. Ali Kooli, the Managing Director at Arab Banking Corporation (ABC) was

nominated as the new Minister of Finance. The Assembly Representative of the People (ARP) will select a date

in September to vote on the new government. If the new government fails to win support from the ARP, new

elections can be expected to take place before the end of 2020.

Tunisia is facing a second wave of coronavirus following the announcement of the official reopening of all

government offices. Consequently, the number of people infected with the virus has continued to climb to

reach a current total of 3,206 cases. 21 people have died since June 27 bringing the total number to 71.

Fragmentation within the ARP and the process of the establishment of the new government complicate the

efforts to respond to the crisis. The formation of the new government and the vote for its approval may have

a direct impact on FAST progress when it comes to high-level decisions within the Ministry of Finance (MoF).

Despite the challenging political, social, and economic situation in Tunisia, FAST continued to implement its

workplan activities. FAST worked on the development of Year 2 Workplan, the Procurement Plan and MoF

Training of Trainers (ToT) and worked closely with the CIMF on the online service platform development and

implementation of the System of the Rationalization of Fiscal and Accounting Action (RAFIC) platform upgrade;

FAST also engaged with the General Directorate for Public Accounting and Collection’s (DGCPR) to conduct

a preliminary assessment on their communication needs and proposes to conduct a training on graphic design.

At the end of August, the FAST project has the following highlights to report:

HIGHLIGHT 1– MOF CAPACITY BUILDING TRAINING

In collaboration with FAST, Ernst and Young (EY) are developing a Scope of Work (SoW) to conduct a training

course designed to build MoF understanding, support, knowledge, and buy-in for the Public Finance

Management Information System (PFMIS). FAST plan to train seven MoF working groups, many general

directors, as well as PFMIS project teams in IT project management, IT custom development methodology,

business process management, and the development of system requirements specifications. EY anticipates the

training course to run from September 2020 through July 2021. Once the training is completed, FAST will work

with the MoF to plan, develop, and implement PFMIS integrated solutions to support the MoF in implementing

the budget and accounting reforms required under the Organic Budget Law (OBL).

HIGHLIGHT 2 – MOF WEBCASTING TOOL

Fiscal Reforms for Strong Tunisia (FIRST) introduced the Webcasting tool to the MoF to use for internal

communication and to increase the quick data exchange between various MoF units. Following the conclusion

of FIRST activities, FAST will take stock of the new system’s operations and status and support its further

expansion to selected MoF units to establish an efficient internal communication system within the ministry for

the future.


HIGHLIGHT 3 – DGCPR COMMUNICATION UPGRADING

FAST conducted consultations with the DGCPR to identify their communication needs, lessons learned from

FIRST efforts, and the communication activities to transition from FIRST to FAST after December 2020. FAST

also conducted a preliminary assessment on the DGCPR communication needs on rebranding and graphic

design and the development of newsletters. FAST proposed to conduct training for the DGCPR to upgrade

their external communications to increase the visibility of DGCPR activities for civil society working on public

finance management (PFM) issues.

OBJECTIVE I: ENHANCED CAPACITY OF THE GOT TO

MANAGE PUBLIC FINANCES

SUMMARY

During August, FAS worked with EY to prepare a plan for MoF staff to enhance their core technical and

functional skills on the management and use of PFMIS.

After the MoF approved the PFMIS Request for Information (RfI), FAST shared the RfI with 40 potential

vendors. FAST is currently discussing extending the submission deadline with the MoF to allow for a

review of the English translation and for additional responses. FAST also discussed with the Steering

Committee (COPIL) the high-level three-year PFMIS delivery activities timeline, including anticipated

challenges and necessary key decisions to ensure that MoF finalizes the plan for implementation of OBL

prerequisites, and establishes teams for the evaluation of the responses to the RfI by end September 2020.

PROGRESS RELATIVE TO THE WORKPLAN

1.2.1: Draft Framework for PFMIS Design

RFI APPROVAL

Following the RfI publication on national and international websites, FAST shared the RfI document with 40

vendors interested in providing the necessary PFMIS components. To date, 27 vendors have expressed interest.

Following the dissemination of the English language version of the RfI, and the ensuing additional interest, FAST

agreed with the Computer Centre of the Ministry of Finance (CIMF) and the MoF to extend the RfI vendor

response submission deadline to September 30 to allow for further vendor responses. MoF’s approval of the

RfI is an important milestone for FAST towards achieving the PFMIS system development. This approach will

affect the MoF’s decision to use either a custom development or Commercial-off-the-Shelf (CoTS) solution

after an assessment of the multiyear costing, resourcing, and maintenance requirements of the different options.

PFMIS WORKING GROUPS DESIGNATION

FAST worked with the MoF and PFMIS Operations Director Mr. Habib Houij to designate the seven PFMIS

working groups and MoF staff who will work with FAST on PFMIS development. The nominated PFMIS working

group team leaders will work strategically with the MoF to align the PFMIS modules with international best


practices and improve internal and external PFMIS operations, procedures, and processes. The working groups

are:

1. Medium Term Budget Framework (MTBF) (10 members)

2. Accounting (20 members)

3. Debt and Cash Management (15 members)

4. Budget Execution (17 members)

5. Revenue Management (12 members)

6. Cash Operations (15 members)

7. Budget Preparation (14 members)

DEBT MANAGEMENT SYSTEM (SIADE) ASSESSMENT

Support System for External Decisions (SIADE) is a GoT public and private external debt management system,

in use from the signing of loan agreements until final repayment. FAST initiated the assessment of SIADE by

detailing its strengths and weaknesses, and the impact of the required budgetary and accounting reforms on

debt management. The FAST assessment of SIADE will enable the CIMF to examine improvements to the

efficiency and real-time monitoring of loan agreements (disbursements, reimbursement, etc.) and will facilitate

the establishment of projections and scenarios for the appropriate assessment of debts. In improving its debt

management systems, the MoF will be able to respond quickly to loan requirements, recognize the most cost-

effective interventions, align the existing platforms with the new PFMIS, and maintain the process improvement

for the integrated PFMIS solutions.

CIMF-IT INFRASTRUCTURE ASSESSMENT

FAST continued its preliminary assessment of CIMF hardware needs and architecture. In consultation with

CIMF leadership, FAST drafted an assessment on the current infrastructure environment including servers,

storage, security, local and wide area networks.

Following the preliminary assessment validation, FAST agreed with the CIMF on the hardware infrastructure

future plan technical analysis to be completed by end 2020, and defined the budget allocated for those activities.

The CIMF-IT infrastructure assessment will also provide FAST with an analysis of the software systems that

are no longer in use by the CIMF that need to be replaced.

1.6: Train MoF Staff

MOF TRAINING OF TRAINERS (TOT)

The Training of Trainers (ToT) program under consideration at this time will cover business process

management, PFMIS business requirements, specification and documentation, and IT project management

methodology. This current training plan is part of a more comprehensive plan to be developed in support of

the OBL and according to the Public Finance Management (PFM) reforms. The current training plan will also

take into consideration the training of 12 MoF staff members to become certified specialists in software project

management such as Project Management Professional (PMP), Prince2 certification, the Information Technology

Infrastructure Library (ITIL), and Business Process Management (BPM). The main objective of the ToT is to

ensure understanding, support, knowledge, and buy-in of the PFMIS platform by the MoF staff throughout the

FAST project life cycle.


In coordination with the MoF, FAST will implement the agreed training plan for the Training of Trainers under

citation no. C.4.1.C.4 as agreed within the project contract.

FAST has drafted a case study to be used as part of the training program on the Budget Preparation module of

PFMIS to reinforce MoF training-on-job functions, system operability, and security in budget reporting and

expenditure management.

CHALLENGES

The COVID-19 crisis, the current political instability and unexpected changes in the government have

presented some challenges. However, FAST has fostered a productive and trust-based relationship with the

MoF and made significant progress in the future design of the PFMIS modules. The team expects to be able to

commence procurement preparation procedures for two modules (Budget Preparation and Debt Management)

in November 2020.

OBJECTIVE 2: ADVANCED REFORMS IN THE BUSINESS

CLIMATE

SUMMARY

FAST worked closely with the CIMF on the online service platform development of RAFIC tax information

platform, and with EY to develop an assessment study on IT requirements for e-service solutions (part of the

overall analysis of MoF/CIMF hardware requirements).

FAST participated in the FIRST Webcasting event at the MoF, during which FIRST showcased its newly installed

internal Webcasting communication tool for MoF staff.


2.2.2: Develop IT requirements for e-service solutions as necessary

E-SERVICES PRIORITY REFORMS

FAST initiated the development of Year 2 activities in consultation with the MoF and related entities and

selected the MoF priority reforms that will align with FAST activities as follows:

➢ Design and implementation of e-filing system (RAFIC upgrade phase2) to integrate other taxes and

duties into the system, and to add other payment methods;

➢ Accelerate the online business registration to facilitate tax identification number generation and

online company status registration. FAST will collaborate closely with Tunisian Investment Authority

(TIA) and Tunisia JOBS as they prioritize this activity at the national level;

➢ Support the MoF to focus on the improvement of tax arrears management and collection. This

process will be integrated with taxpayer accounting to allow businesses to monitor their tax debts

and payment schedules;

➢ Develop a tax debt risk scoring system at the DGCPR level that will interface with the tax payment

and collection system;


➢ Creating a new registration regime for self-employed businesses and the integration of small

businesses into the formal economy, as highlighted in the MoF Tunisian economy rescue plan

announced in late July;

➢ Examine the possibilities to continue FIRST activities related to the Data Warehouse.

MOF WEBCASTING COMMUNICATION TOOL

FAST attended a meeting organized by FIRST at the MoF

on August 24 to launch the USAID funded internal MoF

webcasting system. U.S. Ambassador to Tunisia Mr.

Donald Blome and the (now former) Minister of Finance,

Mr. Nizar Yaïche presided over the meeting and

introduced FIRST’s newly developed Webcasting

communication tool, internal to MoF and its units. FIRST

designed the new video conference system to be used

by the MoF staff to improve communication between the

various MoF units on tax policy issues and reforms. This

modern tool will also support MoF units operating

throughout Tunisia in their daily communications, and

also accelerate quick data exchanges with high

transparency and efficiency. After FIRST closes at the

end of 2020, FAST will support the new system’s functionality and continuous improvement to improve MoF

communications on e-services reforms where needed.

CHALLENGES

FAST is waiting for formal approval of a focal point within the MoF to work closely with FAST on its BEE and

e-Services activities for taxpayers. FAST is also waiting for FIRST to complete its interventions before FAST

can take stock of progress and design its additional schedule of actions for continuity following the activity

transition.

OBJECTIVE 3: IMPROVED COMMUNICATIONS,

ENGAGEMENT AND CONSULTATIONS BETWEEN GOT,

PRIVATE SECTOR, AND CIVIL SOCIETY

SUMMARY

FAST and the Head of the Communication unit at the DGCPR have agreed to build on FIRST project

achievements to establish effective and sustainable communication tools for DGCPR, including the more

efficient use of social media, events organization, internal messaging, and the development of newsletters using

modern graphic design tools and rebranding strategies.

Webcasting event held at the Ministry of Finance (MoF) with

the participation of USAID, FIRST and FAST



3.1.1: Apply entry point mapping tool to identify and assess the existing GOT platforms

ENTRY POINT MAPPING DEVELOPMENT

FAST worked with EY to prepare a SoW to conduct a comprehensive review of the existing entry points for

civil society dialogue with the MoF on PFM policies and to identify and assess the existing GoT platforms and

forums for public-private dialogue. FAST will use the findings from the Entry Point Mapping Tool (EPMT) to

outline the specific topics, forums, and platforms to be used by the MoF to engage with private sector and civil

society actors, and enhance GoT capacity to engage in two-way dialogue with the public and the private sector

about key economic and fiscal policies through public forums and policy discussions.

3.1.2 Support the MOF to Develop Public Engagement Plans

COMMUNICATION ENGAGEMENT WITH THE MOF

FAST is working with the MoF Strategic Communication Unit

(SCU) to strengthen MoF communication tools, including the

assessment and the upgrading of its Facebook page and LinkedIn

account. FAST proposed a range of communications tools to

expand the opportunities for public-private dialogues through the

identification of the appropriate GoT platforms and forums.

Currently, the SCU maintains a Facebook page, but requires a plan

for prioritizing messages. The SCU must also determine the most

effective timing and methods for two-way dialogue that involves

women, youth, and marginalized communities. FAST is actively

working with the MoF Head of the Strategic Communication Unit

to develop engagement methods to reach traditional and new

media, as well as specific metrics for assessing the effectiveness of

MoF outreach efforts to communicate PFM policies.

To consolidate its engagement with the SCU, FAST developed two

newsletter mock-ups for the MoF and proposed the creation of

Twitter and LinkedIn accounts, as well as a social media audit dashboard to help the MoF to assess its

interactions with the public. The MoF welcomed these initiatives and is working with FAST to create and to

upgrade these channels.

GRAPHIC DESIGN TRAINING CURRICULUM

FAST consulted with the DGCPR to identify their communication needs, lessons learned from its engagement

with FIRST, and the communication activities that will transition from FIRST to FAST. FAST plans to support

the DGCPR through the development of a training curriculum on graphic design to improve MoF

communication capacity through customized training, delivered by FAST to the DGCPR (12 trainees) and DGI

(5 trainees). FAST and DGCPR agreed that the graphic design training curriculum will upgrade the DGCPR’s

FAST collaboration with the MoF Strategic

Communication Unit (SCU) to develop cost-

effective communication tools.

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internal communication tools developed by FIRST and will guide DGCPR staff to develop a logo, Facebook

page content, rebranding, a new newsletter for the DGCPR, and video editing through the free platform Canva.

CHALLENGES

Despite the lack of responsiveness and cooperation from the MoF Strategic Communication Unit, FAST is

maintaining daily communication with the MoF to find and implement the best strategies to modernize MoF

communication and outreach.

OPERATIONS & MANAGEMENT

MONITORING, EVALUATION AND LEARNING (MEL)

The FAST MEL Team finalized its draft Indicator Performance Tracking Table (IPTT) and developed the data

management and tracking tools needed to prepare for the upcoming MoF capacity building training.

OPERATIONS

In response to the second wave of the coronavirus pandemic, FAST staff have the option to continue working

remotely to maintain social distancing and to protect FAST staff and visitors. While the pandemic has had no

significant impact on the project activities, FAST is monitoring the Ministry of Public Health website to maintain

up to date information on the pandemic.

PROCUREMENT

Following the publication of the PFMIS RfI on national and international websites, FAST shared the RfI document

by email with 40 vendors who confirmed their interest. Additionally, FAST received the RfI English version in

late August and shared it with interested vendors.

HR ACTIVITIES

Interviews were conducted with the shortlisted candidates for the Change Management and Business Process

Analysts positions. FAST also onboarded the Finance Assistant who joined the team on August 11.

ACTIVITIES FOR NEXT MONTH

OBJECTIVE 1

• Respond to requests for clarifications from vendors on the PFMIS RfI contents;

• Complete the SoW for EY on required training, hardware infrastructure plan, and the PFMIS change

management strategic planning activities for the MoF, as well as for the MoF digital connection

strategy;


• Develop further case studies for training in software requirements specifications necessary for the

MoF training and the launching of the budget preparation and the debt management activities;

• Prepare Year 2 workplan

OBJECTIVE 2

• Coordinate with EY to initiate the MoF digital connection strategy.

• Discuss with the DGCPR cooperation areas with FAST which include the development of risk-based

tax arrears scoring system, the tax information center upgrades, and the development of dashboards

for public expenditures.

• Prepare Year 2 workplan.

OBJECTIVE 3

• Work on the DGCPR graphic design, rebranding, and the development of a training curriculum.

• Prepare Year 2 workplan.

OPERATIONS & MANAGEMENT

• Complete interviews for the Change Management and Business Process Analyst positions – select best

candidates.

• Prepare Year 1 Inventory Report, FAST Procurement Plan, and grants manual.

• Update the MEL plan with the final list of indicators and the approved Year 2 workplan activities.


APPENDIX A. KEY STAKEHOLDERS MEETINGS

OBJECTIVE 1: ENHANCED CAPACITY OF GOT TO MANAGE PUBLIC FINANCES

Date Participants Meeting outcome

August 06 • FAST

• Expertise

France

Exchanged planned coordination modalities and activities to ensure the complementarity of activities between FAST and Expertise France (EY) during the collaboration with the MoF on PFMIS module development.

August 24 • FAST

• CIMF Replied to RfI vendors clarification requests and extended the submission deadline to vendors.

August 25 • FAST

• CIMF

Followed up with the PFMIS Operations Director on the signing of ministerial orders to establish the seven MoF

teams who will work on the PFMIS development and delivery.

August 28 • FAST

• CIMF Finalized FAST presentation on RfI development in consultation with CIMF and the PFMIS Operations Director.

August 28 • FAST

• EY Discussed with EY their feedback on the development of the MoF training Scope of Work (SoW).

August 31 • FAST

• CIMF

• MoF Discussed the planned PFMIS implementation timeline with COPIL.

OBJECTIVE 2: ADVANCED REFORMS IN THE BUSINESS CLIMATE

Date Participants Meeting outcome

August 03 • FAST

• CIMF Discussed priority reforms and the activities to be implemented within the Objective 2 activities timeline.

August 24 • FAST

• FIRST

• MoF Participated in the FIRST Webcasting event.

August 27 • FAST

• FIRST

Discussed the FIRST tax arrears scoring system.


OBJECTIVE 3: IMPROVED COMMUNICATIONS, ENGAGEMENT AND CONSULTATIONS BETWEEN GOT, PRIVATE

SECTOR, AND CIVIL SOCIETY

Date Participants Meeting Outcome

August 18 • FAST

• DGCPR Introduced the FAST project activities and elaborated on a communication assessment plan and training curriculum.