Project Report: February 2005 - Harvard University · PDF fileExpenditure Management and Control Program Assessment Report of Somali Region TABLE OF CONTENTS ... Project at the Federal

Assessment Report of

Somali National Regional State

Project Report: February 2005

Decentralization Support Activity Project

The DSA Project is implemented by Harvard University and funded by USAID, Ireland Aid and Netherlands Minister for Development Corporation

CIVIL SERVICE REFORM

Expenditure Management and Control Program

Assessment Report of

Somali Region

TABLE OF CONTENTS Section 1: Background and Purpose 1 Section 2: Findings 3 Section 3: Recommendations 6 Section 4: Action Plan 7

Assessment of Somali People’s Regional State

February 2005 1

SECTION 1: BACKGROUND AND PURPOSE 1. Introduction The DSA Project is providing technical assistance to the Government of Ethiopia’s Civil Service Reform in the areas of budget, accounts and expenditure planning. The DSA Project is implemented by Harvard University and funded by USAID, Development Cooperation of Ireland and the Netherlands Minister for Development Cooperation. The Budget Reform has so far been implemented with the support of the DSA Project at the Federal Government and in Tigray, SNNP, Oromia, Amhara and Beneshangul/Gumuz regions. The Accounts Reform has so far been implemented with the support of the DSA Project at the Federal Government and in Tigray, SNNP and Amhara regions. A part of the work plan agreed with the Ministry of Finance and Economic Development envisages that the budget and accounts reforms are introduced in Somali region in the FY 1998-99. An assessment of the region was required as amongst the first few key steps in the reform process. Accordingly, the DSA Project conducted an assessment of the Somali Regional State in January 2005 with the following objectives:

• To obtain a full understanding of the region in areas such as devolution,

restructuring, status of the FY 1997 budget, status of accounts closure, staffing, and its impact on the Budget and Accounts Reform.

• To identify whether adequate technical staff capacity exists to effectively implement the reforms.

• To identify other constraints that may negatively impact the introduction of Budget and Accounts Reform.

• To identify recommendations to overcome the issues and constraints

• To develop an action plan and strategy to introduce the Budget Reform. Whilst the assessment found a number of areas that require improvement, it also recognizes the significant efforts of the regional staff in preparing the regional budget and closure of accounts. We fully acknowledge the support provided by staff members of the Region to assist with the assessment.


February 2005 2

1.1 Jurisdictions Assessed The jurisdictions assessed included BOFED and two Regional Sector Bureaus. The jurisdictions assessed are listed below:

1. Bureau of Finance and Economic Development - Treasury

2. Region Sector Offices:

- Education Bureau

- Bureau of Health

The remainder of this report is structured as follows:

• Findings

• Recommendations

• Action Plan


February 2005 3

SECTION 2: FINDINGS 2. Introduction The assessment and findings were documented using the following approach:

• A questionnaire was developed and used in the field visits.

• BOFED selected the sample jurisdictions and budgetary institutions to be visited.

• DSA and BOFED staff conducted interviews with senior staff of the selected sample of budgetary institutions.

• The findings were discussed with senior staff from BOFED. 2.1 Overview of the Region The Somali Regional State has a three-level administrative structure:

• Regional Council

• Region Sector Offices

• Weredas The region has implemented devolution. The Region has 9 zones, 52 weredas and 42 regional sector offices. Each wereda has 17 Public bodies and is served by a single pool. From FY 1997, the regional council approves block grants to weredas. Other regional information is tabulated below

Number of Region Sector Offices 42 Number of Pools at Region 6 Number of Zones 9 Number of Weredas 52 Number of Public Bodies at Wereda 17 Number of Sub-Agencies in a Wereda 27 Number of pools at Wereda 1


February 2005 4

The Region Sector Offices are pooled under six Coordination Offices: • Bureau of Finance and Economic Development • Pastoral Development Coordination Office • Office for Capacity Building • Justice, Administration, & Security Coordination Office • Trade, Transport, Industry, works, & Urban Development Coordination

Office • Community Mobilization Coordination Office All zones in the region are non-jurisdiction zones. 2.2 Budget The Somali Regional State has not introduced Budget Reform at any level. The Region is using the old system, (old chart of accounts, old budget forms, old budget structure, old budget execution forms, old registers and old reporting formats), for both budget preparation and execution purposes. 2.3 Accounts

FY 1995 Accounts Accounts have been finalized and reports submitted to MOFED. FY 1996 Accounts

The status as regards the closure of FY 1996 accounts is as follows:

• 5 Region Sector Bureaus are yet to submit final reports. • At the zonal level finalization and closure of 5 zonal accounts is in

progress whilst the process is yet to commence in the remaining 4 zones. The devolution process has resulted in staff reassignment without proper handover and has caused further delays in closing FY 1996.


February 2005 5

2.4 Inadequate Technical Capacity at Weredas The Region has carried out staff reassignments. BOFED stated that efforts were made to assign as many qualified staff in the weredas as possible. Details of the number of staff (excluding cashiers) assigned to Budget and Accounts and their qualifications are listed below.

Number of Weredas Number of staff and qualification 4 Weredas 4 staff are Economic Graduates 4 staff are Diploma holders 7 staff have completed 12 grade 32 Weredas 32 staff are Diploma holders 64 staff have completed 12 grade 15 Weredas 19 staff have completed 12 grade 1 Wereda To be determined

2.5 Single Pool System Somali region is in the process of implementing the single pool systems in all its weredas starting FY 1997. 2.6 Training of Senior Officials Senior officials in the Region have not received any orientation about the reforms. BOFED officials understand the importance and necessity of the orientation. 2.7 Accessibility and Security At present, 5 of the 52 Weredas are not easily accessible because of security problems and bad roads. These 5 weredas are Selehad, Legehida and Mymuruck in Fique zone, situated about 800 kilometers from JiJiga; and, East Imi in Gode zone and West Imi in Afder zone situated about 1,400 kilometers from JiJiga. As regards security, the BOFED Head stated the situation has improved over the past years.


February 2005 6

2.8 Reform Management BOFED has proposed a seven-member Reform Steering Committee with the Head of BOFED as the Chairman of the Committee. BOFED has also proposed a four-member Budget Reform Team.


February 2005 7

SECTION 3: RECOMMENDATIONS This section details the overall recommendations based on the findings of the assessment. 3.1 Staffing At least two additional qualified staff (Accounting BA or Diploma) should be recruited for each wereda to implement the budget preparation and execution. 3.2 Training of Senior Officials An awareness creation workshop for Senior Officials should be conducted to ensure they understand and support the reform. 3.3 Reform Management Committee The list of members proposed for the Reform Management Steering Committee and the Budget Reform Team should be formalized with terms of reference. 3.4 Closure of FY 1996 Accounts

The FY 1996 accounts should be closed as soon as possible to prevent backlogs. 3.5 Training on Single Entry - Old Chart of Accounts Training should be delivered to wereda staff to enhance their understanding of the accounting system in order to facilitate the closure of FY 97 accounts. 3.6 Procurement of Forms BOFED should procure all types of new budget execution forms for FY 98 and distribute it to weredas to facilitate the budget execution process. 3.7 Pool Guidelines The single pool guidelines should be finalized and distributed to weredas as soon as possible.


February 2005 8

SECTION 4: ACTION PLAN 4.0 Introduction This Section contains an action plan to implement the Budget Reform in the Somali People’s Regional State. 4.1 Key Milestones

The key milestones to implement the action plan include:

• Prepare and implement single pool guidelines.

• Complete staff assignment with qualified accountants for positions related to budget and accounts, especially at each Wereda.

• Define budget training strategy

• Finalize Budget Manual and Module.

• Deliver budget preparation training.

• Finalize Budget Structure for RSBs and the Weredas.

• Print Budget Preparation Forms for FY 1998

• Design and print Budget Execution Forms.

• Conduct briefing on Budget and Accounts Reforms to the Regional Cabinet.

• Reduce number of bank accounts at RSBs to keep only the active and necessary accounts.


February 2005 9

4.2 Action Plan for Budget Reform

Key Tasks Timing Responsible Finalize Budget Training Strategy February DSA/BRT Finalize Budget Structure February DSA/BRT Finalize Budget Reform Manual & Training Module February DSA/BRT Create Awareness for Senior Officials March BOFED Prepare and implement pool guidelines March BOFED Close FY 1996 Accounts April BOFED Print & Distribute Budget Training Materials Complete printing March DSA Distribute training materials - region-wide April BOFED Print & Distribute Budget Preparation Forms Complete printing March DSA Complete distribution of forms – region wide April BOFED Complete Budget and Accounts staff assignment March BOFED Print and Distribute Budget Execution Forms Define quantities to be printed February BRT Complete printing May BOFED Distribute execution forms - region-wide June BOFED Deliver Budget Preparation Training Conduct training for core trainers April DSA Conduct region wide training April/May TOT/BOFED


February 2005 10

4.2 Action Plan for Budget Reform (Continued)

Key Tasks Timing Responsible Issue Budget Call with Estimated Ceilings to RSBs Finalize: Covering letter with instructions March BOFED Ceiling by source of finance March BOFED Copies of budget structure & budget calendar March BOFED Copies of sector policies March BOFED Copies of principles for preparing cap & rec budgets March BOFED Issue estimated ceilings to RSBs March BOFED Issue Estimated Subsidies to OFEDs Finalize: Covering Letter with Instructions March BOFED Subsidies by source of finance March BOFED Copies of Budget Structure & Budget Calendar March BOFED Copies of Sector Policies March BOFED Copies of principles for preparing cap & rec budget March Issue estimated subsidy to OFEDs and DOFEDS March BOFED BIS Prepare data processing plan April DSA Identify users to be trained on BIS April BOFED Deliver BIS training April DSA Enter budget data May BOFED Monitor BIS data entry operations May-June DSA Prepare Budget Book Aug - Oct BOFED Consolidate & Approve Budget Requests: Region Notify actual ceilings to RSBs May BOFED Submit budget requests to BOFED June RSBs Review/approve all budget submissions June BOFED Consolidate RSB budgets June BOFED Obtain Cabinet approval June BOFED Obtain Regional Council’s approval July BOFED


February 2005 11

4.2 Action Plan for Budget Reform (Continued)

Key Tasks Timing Responsible

Consolidate & Approve Budget Requests: OFED Notify actual ceilings to WSOs May OFED submit Budget Requests to OFEDs June WSO Review/approve budget requests June OFED Consolidate WSO Budgets June OFED Obtain final recommendation from Wereda Cabinet June OFED Obtain Wereda council Approval July OFED Recruit qualified accountants at weredas and zones June BOFED Notify Budgets: Region, OFED Notify budget to RSB using BIS July BOFED Notify WSO of Councilʹs Approval July OFED Submit Notification Forms to BOFED August OFED Consolidate Region & Wereda Budget August BOFED Print Budget Books August BOFED Publish Negarit Gazette September BOFED

Reduce the number of Bank Accounts July BOFED

TRAINING STRATEGY

A. Number of Trainees

The Region should provide a core team of 24 trainers. 4 of these core trainers should be from BOFED/RSB to train staff from the region, and, 20 of the core trainers should be from the Weredas and Zones to deliver training at their respective Zone/Wereda.

B. Training Materials & Training Days

The training materials comprise the Budget Reform Manual, Budget Training Module, set of Annexes and the Solutions to Exercises (for use by trainers only). The budget preparation training is for duration of 4 days.

C. Total Number of Trainees

Weredas Offices Staff # Total Finance Office 6 6 Wereda Sector Offices 17 2 34 Total # of staff to be trained at each Wereda 40 # of Weredas 52 Total # of staff to be trained at 52 Weredas 2,080

Zones Public Bodies 8 2 16 # staff to be trained at each Zone 16 # of Zones 9 Total # of staff to be trained at 9 Zones 144

Region Finance Office 10 10 Public Bodies 41 3 123 Total # of staff to be trained at Region 133

Grand Total 2,357

D. Total Participants/Class Size/Training Sessions/Timing/Venue

Group # Class Size

Sessions Timing Venue

Core Trainers 24 24 1 April Addis Ababa Level-2 TOT 104 37 3 April 3 Zonal towns Regional Trainees 129 43 3 April Jijiga Wereda & Zonal Trainees 2,100 42 1 April Wereda Total 2,357


February 2005 1

QUANTIFICATION OF BUDGET PREPARATION FORMS

For FY 1998 Budget Preparation Type of Form # Wereda # Zone #RSBs Total

Me/Beme -1 7,000 1,000 1,000 9,000 Me/Bema - 2 7,000 1,000 1,000 9,000 Me/Bema - 3 7,000 1,000 1,000 9,000 Me/Bema - 4 10,500 1,000 1,000 12,500 Me/Bema - 5 1,500 - 500 2,000 Me/Bema - 6 6,500 100 500 7,100 Me/Bema - 7 32,000 300 3,500 35,800

Bema - 10 1,500 - 300 1,800 Me/Bema - 11 4,000 - 300 4,300

Ge/Be/We - 14/1 50,000 2,000 5,000 57,000 Bema - 1 20,000 300 10,000 30,300

Ka/Bema - 1 6,000 - 700 6,700 Ka/Bema - 2 6,000 - 700 6,700 Ka/Bema - 3 6,000 - 900 6,900 Ka/Bema - 4 9,000 - 1400 10,400 Ka/Bema - 6 1,000 - 100 1,100 Ka/Bema - 7 1,000 - 100 1,100

For Training Exercises

Type of Form # Per Trainee Total Add 20% Grand Total Me/Beme -1 2 2,360 472 2,840 Me/Bema - 2 2 2,360 472 2,840 Me/Bema - 3 2 2,360 472 2,840 Me/Bema - 4 2 2,360 472 2,840 Me/Bema - 5 2 2,360 472 2,840 Me/Bema - 6 55 64,900 12,980 77,880 Ka/Bema - 1 1 1,180 240 1,420 Ka/Bema - 2 1 1,180 240 1,420 Ka/Bema - 3 1 1,180 240 1,420 Ka/Bema - 4 1 1,180 240 1,420

# Trainees = 2,357. # Trainees in one group = 2


February 2005 2

QUANTIFICATION OF TRAINING MATERIALS Total number of Trainees = 2,485 Type of Manual Trainees BOFED Zone Wereda DSA Total Budget Guide 2,357 10 9 104 10 2,490 Training Modules T-version 2,357 5 - - 10 2,372 Solutions 128 - - - 5 133 Annex 2,357 5 9 52 5 2,428


February 2005 1

REGION BUDGET STRUCTURE

# PB Pr SA Description

1 111 Regional Council 01 Legislative 01 Administration and General Service

2 113 Office of the Auditor General 01 Support and Advisory 01 Administration and General Service

3 115 Office of Regional Administration 01 Support and Advisory 01 Administration and General Service 02 Jijiga Zone Administration 03 Shinille Zone Administration 04 Degehabour Zone Administration 05 Fique Zone Administration 06 Godae Zone Administration 07 Afdaer Zone Administration 08 Qorahae Zone Administration 09 Wardaer Zone Administration 10 Liben Zone Administration

4 119 Women’s Affairs Office 01 Support and Advisory 01 Administration and General Service

5 121 Bureau of Justice 01 Support and Advisory Service 01 Administration and General Service 02 Jijiga Zone Justice Department 03 Shinille Zone Justice Department 04 Degehabour Zone Justice Department 05 Fique Zone Justice Department 06 Godae Zone Justice Department 07 Afdaer Zone Justice Department 08 Qorahae Zone Justice Department 09 Wardaer Zone Justice Department 10 Liben Zone Justice Department


February 2005 2

# PB Pr SA Description 6 122 Supreme Court 01 Support and Advisory 01 Administration and General Service 02 Jijiga Zone Supreme Court 03 Shinille Zone Supreme Court 04 Degehabour Supreme Court 05 Fique Zone Supreme Court 06 Godae Zone Supreme Court 07 Afdaer Zone Supreme Court 08 Qorahae Zone Supreme Court 09 Wardaer Zone Supreme Court 10 Liben Zone Supreme Court

7 127 Police Commission 01 Crime Prevention 01 Administration and General Services

8 129 Prison Administration 01 Prison Administration 01 Administration and General Service

9 133 Admin., Justice, & Security Affairs Coord. Office 01 Support and Advisory Services 01 Administration and General Services 02 Jijiga Zone Coordination Office 03 Shinille Zone Coordination Office 04 Degehabour Coordination Office 05 Fique Zone Coordination Office 06 Godae Zone Coordination Office 07 Afdaer Zone Coordination Office 08 Qorahae Zone Coordination Office 09 Wardaer Zone Coordination Office 10 Liben Zone Coordination Office 12 Sheria Court 13 Office for Affairs of Neighboring Regions

10 134 Office of the Militia 01 Conflict Prevention 01 Administration and General Services


February 2005 3


11 152 Bureau of Finance & Economic Development 01 Support and Advisory Services 01 Administration and General Services

12 153 Bureau of Information, Culture & Tourism 01 Information Dissemination 01 Administration and General Services

13 155 Civil Service Commission 01 Support and Advisory Services 01 Administration and General Services

14 156 Revenue Administration 01 Support and Advisory 01 Administration & General Services

15 175 Community Mobilization Coordination Office 01 Support and Advisory Services 01 Administration and General Services

16 211 Bureau of Livestock and Agriculture Development 01 Support & Advisory 01 Administration and General Services 02 Protection Programs (?) 01 Plant/Crop Protection Dept. (?) 03 Livestock Development (?) 01 Livestock and Animal Health Dept. (?) 04 Extension Programs 01 Livestock Extension Dept. (?) 05 Natural Resource Development & Conservation 01 Soil, Water, Forestry and Wild Life Conservation &

Development Department (?) 17 213 Agro-Pastoral Research Institute

01 Support and Advisory 01 Administration and General Services

18 215 Pastoral & Agriculture Devt. Coordination Office 01 Support and Advisory 01 Administration and General Services

19 216 Bureau of Coop. Promotion, Organization 01 Support and Advisory 01 Administration and General Services


February 2005 4

#

PB Pr SA Description

20 221 Water & Mining Resource Devt. Bureau 01 Support and Advisory 01 Administration and General Services

21 231 Bureau of Trade, Transport, Industry & Communication

01 Support and Advisory 01 Administration and General

22 235 Investment Office 01 Investment Promotion and Development 01 Administration & General Services

23 272 Bureau of Works and Urban Development 01 Support and Advisory 01 Admin. & General Service - Transport

24 273 Rural Roads Authority 01 Support and Advisory 01 Administration and General Services

25 278 Trade Transport Industry Works & Urban Dev Coordination Office

01 Support and Advisory 01 Administration and General Services

26 311 Education Bureau 01 Support and Advisory 01 Administration and General Service 02 Primary Education 01 Primary Education (1 - 8) 03 Secondary Education 02 High School Education (9-10) 03 Pre-College Education (11 –12) 04 Higher Education 05 Technical Vocational Education 01 Jijiga Technical Vocational School 02 East Jijiga Technical Vocational School 06 Teacher’s Training Education 01 Jijiga Teachers Training Institute 07 Non-formal Education 08 General Education


February 2005 5

#

PB Pr SA Description

27 318 Office of Capacity Building 01 Support and Coordination Services 01 Administration and General Service 11 Civil Service Reform Office

28 319 Regional Management Institute 01 Human Resource Training and Development 01 Administration and General Services

29 331 Bureau of Youth, and Sport 01 Support and Advisory Services 01 Administration and General Service

30 341 Health Bureau 01 Support and Advisory 01 Administration and General Services 02 Primary Health Care 01 Health Centers Clinics, Health Posts 03 Hospital Affairs and Services 01 Jijiga Hospital 02 Degehabour Hospital 03 Gode Hospital 04 Kebri-Dehar Hospital 04 Health Training 01 Jijiga Nursing College 05 Disease Control 01 HIV/AIDS 02 Malaria 06 Public Health 07 Drug and Health Products

31 351 Labor & Social Affairs Bureau 01 Support and Advisory 01 Administration and General Services

32 353 Population Office 01 Support and Advisory 01 Administration and General

33 361 Disaster Prevention & Preparedness Office 01 Prevention and Preparedness 01 Administration and General Services


February 2005 6


34 362 Food Security Office

01 Support & Advisory 01 Administration and General Services

35 462 Provision for Salary & Operating Expenses 36 463 Provision for Bank Charges

Note: Since the zones are non-jurisdiction zones, the zonal department offices are treated as sub-agencies of their respective Region Sector Bureau.


February 2005 7

APPENDIX 1: WEREDA BUDGET STRUCTURE

# PB PR SA Description

100 ADMINISTRATION & GENERAL SERVICE 1 111 Wereda Council 01 Legislative 01 Administration and General Service

2 115 Office of Wereda Administration 01 Support and Advisory 01 Administration and General Service

3 119 Women Affairs Desk 01 Women’s Affairs Development 01 Administration and General Service

4 121 Wereda Justice Office, Public Persecutorʹs Office 01 Support and Advisory 01 Administration and General Service 14 Wereda Police 15 Wereda Militia Office

5 122 Wereda Court 01 Support and Advisory 01 Administration and General Service

6 133 Admin, Justice, & Security Coordination Office 01 Support & Advisory Services 01 Administration and General Service

7 152 Office of Finance and Economic Development 01 Support and Advisory 01 Administration and General Services

8 175 Public Participation, Org & Coordination Office 01 Civil Society Coordination 01 Administration and General Service


February 2005 8


200 ECONOMIC

9 211 Livestock & Agriculture Devt. Office 01 Support and Advisory 01 Administration and General Services 02 Agricultural Devt. & Extension Program (?) 01 Agri. Extension & Devt. Unit (?) 03 Livestock Devt. & Animal Health 01 Livestock Devt. & Animal Health Section 04 Natural Resource Devt. & Conservation Program 01 Forestry, Wildlife, Soil and Water

10 215 Pastoral & Rural Devt. Main Office 01 Support and Advisory 01 Administration and General Services

11 216 Cooperative Promotion Office 01 Support and Advisory Services 01 Administration and General Service

12 221 Water Resource Desk 01 Water & Mining Resource Development & Conservation 01 Administration and General Service

13 231 Trade, Industry, & Urban Development Desk 01 Support and Advisory

300 SOCIAL 14 311 Education Office

01 Support and Advisory 01 Administration and General Services 02 Primary Education 01 Primary Education (0-8) 03 Secondary Education 01 High School, (9 - 10) 02 Pre-College Education, (11-12) 05 Technical Vocational Education 06 Teacher’s Training Ed. 07 Non-Formal Education 08 General Education


February 2005 9


15 318 Capacity Building Coordination Office

01 Support & Coordination 01 Administration and General Service

16 341 Health and HIV/AIDS Office 01 Support and Advisory 01 Administration and General Service 02 Primary Health Care 01 Clinics & Health Posts, Health Stations 03 Hospital Affairs and Services 04 Health Training 05 Disease Control 01 HIV/AIDS 02 Malaria 06 Public Health 07 Drugs and Health Products

17 361 Disaster Prevention & Food Security Desk 01 Prevention & Preparedness 01 Administration and General Service

18 462 Provision for Salary & Operating Expenses 19 463 Provision for Bank Charges


February 2005 10

APPENDIX 2: ZONE AND WEREDA CODES

Somali Regional Code 05

Zone code Zone Name Wereda code Wereda Name 01 Jijiga Zone 001 Jijiga Wereda Wereda

002 Kebri-Beyah 003 Aw-Bere 004 Harshi 005 Babille 006 Gursum 007 Ejer-Sagoro

02 Shinille Zone 008 Shinille Wereda 009 Errer 010 Afdom 011 Aysha 012 Meʹesso 013 Dembel

03 Dege - Havbour

014 Degehabour

015 Aware 016 Gashammo 017 Dege-Hamddo

04 Fique Zone 018 Fique Wereda 019 Selehad 020 Gerbbo 021 Hamerro 022 Dehon 023 Seggeg 024 Legehida 025 Mymiruck

05 Godie Zone 026 Godie Wereda 027 Dhahnan 028 Adorlle 029 Kelaffo 030 Mustahil 031 East Immi 032 Ferfer


February 2005 11

Zone code Zone Name Wereda code Wereda Name

06 Afder Zone 033 Hargelle wereda 034 Cheritti 035 Elkerre 036 Barre 037 West Immi 038 Gurra-Damolle 039 Dollo-Bay 040 Gorro-Bekeksso

07 Qorrhae Zone 041 Qorrahae Wereda 042 Shekosh 043 Shillabo 044 Dhobewoin

08 Warder Zone 045 Warder Wereda 046 Galladi 047 Boh 048 Dannot

09 Liben Zone 049 Filttu Wereda 050 Moyalle 051 Dollo-Oddo 052 Huddat

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Project Report: February 2005 - Harvard University · PDF fileExpenditure Management and Control Program Assessment Report of Somali Region TABLE OF CONTENTS ... Project at the Federal