PUBLIC SECTOR SYSTEMS STRENGTHENING (PS3) IN TANZANIA

January 31, 2016

This publication was produced for review by the United States Agency for International Development. It was

prepared by the Public Sector Systems Strengthening (PS3) Activity located in Dar es Salaam, Tanzania, under

Contract AID-621-C-15-00003 with USAID/Tanzania.

PUBLIC SECTOR SYSTEMS STRENGTHENING

(PS3) IN TANZANIA YEAR 2 QUARTER 1 REPORT

OCTOBER 1 – DECEMBER 31, 2016

The USAID/Tanzania Public Sector Systems Strengthening Activity (PS3)

USAID/Tanzania Public Sector Systems Strengthening Activity (PS3) overarching goal is to support the

Government of Tanzania to strengthen the public system to promote the delivery, quality, and use of

services, particularly for underserved populations. Led by Abt Associates, PS3 is implemented in

partnership with Benjamin William Mkapa HIV/AIDS Foundation, Broad Branch Associates, IntraHealth

International, Local Government Training Institute, Tanzania Mentors Association, and University of Dar

es Salaam and Urban Institute.

January 2017

Contract No: AID-621-C-15-00003

Submitted to: Shannon Young, Contracting Officer Representative

Cover Photo: A section of PS3 members of staff at the orientation for new Regional Program Managers and

Mentors that was held in Tanga in November, 2016. (Photo: PS3)

DISCLAIMER

The contents of this report are the sole responsibility of the PS3 Activity and do not necessarily reflect

the views of USAID or the United States Government.

CONTENTS

Contents ............................................................................................................ vii

Acronyms ........................................................................................................... ix

Executive Summary and Quarterly Achievements ........................................ 12

1. Governance and Citizen Engagement .............................................. 16

1.1 Strengthening Citizen Engagement and the Functioning of LGA

Committees .......................................................................................... 16 1.2 Strengthening PFM Systems ................................................................ 19

2. Human Resources .............................................................................. 21

2.1 Strengthen HR Planning and Distribution ............................................. 21 2.2 Strengthen HR Retention ...................................................................... 24 2.3 HR Efficiency, Productivity and Performance Management ................. 25 2.4 HR Knowledge Generation and Advocacy ............................................ 27

3. Finance ................................................................................................ 31

3.1 Support Introduction of Single National Health Insurance (SNHI) ........ 31 3.2 Improve Service Payment Systems ...................................................... 31 3.3 Strengthen Intergovernmental Fiscal Transfers from Central

Government to LGAs ............................................................................ 35 3.4 Strengthening Facility-Level Financial Management and Resource

Tracking ................................................................................................ 35

4. Information Systems .......................................................................... 38

4.1 Support Improvement of ICT /LAN and Operations at Regional/LGA

Level ..................................................................................................... 38 4.2 Improving Interoperability and Efficiency of Information Systems ......... 38

5. Operations Research .......................................................................... 45

6. Cross Component Interventions ....................................................... 47

6.1 Gender Sensitivity and Integration ........................................................ 47 6.2 Public-Private Sector Dialogue ............................................................. 48

7. Communications and Knowledge Management .............................. 50

7.1 Contractually required reporting ........................................................... 50 7.2 Outreach and communications capacity building .................................. 50 7.3 Internal knowledge management and documentation .......................... 51

8. Monitoring and Evaluation ................................................................. 52

9. Project Management ........................................................................... 55

9.1 RPM and Mentor Hiring and Organization ............................................ 55 9.2 RPM and Mentor Orientation ................................................................ 56 9.3 RPM and Mentor Deployment .............................................................. 57 9.4 Establishment of Regional Offices ........................................................ 58

10. Challenges .......................................................................................... 59

10.1 MOHCDGEC Support for POA ............................................................. 59 10.2 Communication with POPSM ............................................................... 59

viii

10.3 Program Management and Systems .................................................... 59

ix

ACRONYMS

AP Action Plan

BRN Big Results Now

CAG Controller and Auditor General

CDC Centers for Disease Control and Prevention

CHF Community Health Fund

CHMT Council Health Management Team

CHSSP Community Health and Social Welfare System Strengthening Program

COP Chief of Party

COSTECH Commission for Science and Technology

DC District Commissioner

DC District Council

DCOP Deputy Chief of Party

DHIS District Health Information System

DPG Development Partners’ Group

eGA e-Government Agency

eLMIS Electronic Logistics Management Information Systems

GOT Government of Tanzania

HCMIS Human Capital management Information Systems

HLG Higher Local Government

HMIS Health Management Information Systems

HR Human Resources

HRH Human Resource for Health

IAG Internal Auditor General

ICT Information and Communication Technology

IPSAS International Public Sector Accounting Standards

IS Information Systems

JSI John Snow Inc.

LGAs Local Government Authorities

LGRCIS Local Government Revenue Collection Information System

LGTI Local Government Training Institute

x

LISA Local Government Institutional Self Appraisal

LLG Lower Local Government

LOE Level of Effort

M&E Monitoring and Evaluation

MC Municipal Council

MDAs Ministries, Departments and Agencies

MOALF Ministry of Agriculture, Livestock and Fisheries

MoHCDGEC Ministry of Health, Community Development, Gender, Elderly and Children

MOFP Ministry of Finance and Planning

MoU Memorandum of Understanding

MSD Medical Stores Department

MTSP Medium Term Strategic Plan

NBS National Bureau of Statistics

NeHSC National eHealth Steering Committees

NGOs Non-Governmental Organizations

NHA National Health Accounts

NHIF National Health Insurance Fund

OC Other Charges

OR Operational Research

OPRAS Open Performance Review and Appraisal System

PIRS Project Indicator Reference Sheets

PLANREP Planning and Reporting software

PMT Project Management Team

POA Priority Optimization Analysis

POPSM President’s Office – Public Service Management

PORALG President’s Office, Regional Administration and Local Government

POS Point of Sale

PS3 Public Sector Systems Strengthening

RAS Regional Administrative Secretary

RC Regional Commissioner

RBF Results-Based Financing

RITA Registration Insolvency and Trusteeship Agency

RPM Region Program Manager

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RS Regional Secretariat

SNHI Single National Health Insurance

SP Strategic Plans

SPSS Statistical Package for Social Sciences

TA Technical Assistance

TASAF Tanzania Social Action Fund

TC Town Council

TMA Tanzania Mentors Association

TOR Terms of Reference

UCC University Computing Centre

USAID United States Agency for International Development

USG United States Government

WDC Ward Development Committees

WISN Workload Indicators Staffing Need

EXECUTIVE SUMMARY AND QUARTERLY ACHIEVEMENTS

The purpose of the Public Sector Systems Strengthening Activity (PS3) is to support the Government of Tanzania (GOT) to strengthen national systems to promote the delivery, quality, and use of public services, particularly for underserved populations. PS3 also strengthens key multi-sectoral components of Local Government Authority (LGA) systems as part of the approach to promote inclusive and evidenced-based planning, management, and implementation of services. PS3 is a five-year USAID-funded activity with five components or systems functions that work across multiple sectors: Governance and Citizen Engagement, Human Resources, Finance, Information Systems, and Operations Research. PS3 is led by Abt Associates in partnership with Benjamin William Mkapa Foundation (BMF), Broad Branch Associates, IntraHealth International, Local Government Training Institute (LGTI), Tanzania Mentors Association (TMA), University of Dar es Salaam (UDSM), and Urban Institute. This Year 2 Quarter 1 (Y2Q1) Quarterly Report covers the project period of October 1, 2016 – December 31, 2016.

Building on the foundational work in Year 1, PS3 substantially invested in further development and realization of the regional/LGA operations strategy. During Y2Q1, PS3 fully operationalized the strategy which resulted in the doubling of the project staff, staff on the ground in all 13 regions, and the deployment of over 30 PS3 mentors with technical expertise in governance, human resources (HR), finance and information systems (IS). This activity required the resources, time and people power of all PS3 staff and was a major accomplishment of Y2Q1, and has resulted in both the reach and momentum necessary to deliver the expansive vision of PS3.

In Y2Q1, PS3 continued to establish 13 small regional offices and organized its regional/LGA staff into 6 geographic management units covering all 13 PS3 regions. Each management unit consists of two to three Regional Program Managers (RPMs) and one mentor cluster. Each mentor cluster consists of governance, HR, finance and IS mentors to ensure support and integration of all PS3 technical interventions. The RPM and mentor management unit will share resources, monthly operation plans and develop a common action calendar. This team based approach supports comprehensive systems strengthening and service delivery improvement through integration and coordination of interventions at the regional/LGA level.

Prior to deploying teams to the field, all PS3 staff including RPMs and mentors participated in a comprehensive PS3 orientation, including both on and off site sessions. The offsite orientation was held November 7-12, 2016 and featured a blend of management, technical and operational sessions. This intense week was carefully designed to inform and align all PS3 staff with the overall vision and goals, implementation strategy and sequencing, and culture of the project, while also providing in depth technical sessions on both component program interventions and

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the support functions of contract and financial management, communications, and monitoring and evaluation (M&E). Led by the Chief of Party and component team leads, the week-long orientation also built strong collegial relationships and fostered a sense of shared commitment and purpose, which will be critical as teams disperse to the regions and tackle the significant work that awaits them as well as the challenges of maintaining project integration and cohesiveness from different geographic locations. RPMs and mentors then convened for one week at the PS3 office in Dar es Salaam to deep dive into their individual responsibilities and technical areas as well as plan for the logistics of their deployment.

Following the orientation in November, PS3 deployed the six RPM and mentor management units to the field to introduce the new RPMs and mentors. The PS3 deployment teams met with the Regional Secretariats of the 13 PS3 regions, as well as Phase I LGAs in each region. PS3 worked with the regional and LGA focal persons to inform the Regional Administrative Secretaries (RASs) as well as District Executive Directors (DEDs) of the arrival of the new PS3 team members in their respective region. The deployment approach proved to be successful and strengthened relations between PS3 and the regional and LGA council staff.

PS3 has identified three key interventions to ensure that broad systems strengthening is also focused and concentrated on critical results shifting human and financial resources to service providers to improve service delivery especially in underserved areas. In Y2Q1, significant progress was achieved in all three key interventions of PlanRep redesign, introducing HR prioritization and optimization (POA) analysis to better allocate and distribute staff at service provider level, and creating a new intersection of public finance management (PFM) and sector service financing and payment systems.

The joint and fully integrated PORALG ICT and PS3 team continued to make rapid headway on PlanRep redesign. The opportunity for PS3 to support PORALG in this major and critical undertaking has evolved rapidly, been designated a key PS3 intervention, and if successful will significantly improve LGA level planning, budgeting and reporting resulting in substantial multi-sector systems strengthening, management improvements, and efficiency gains contributing to service delivery improvement. In Y2Q1, PORALG, PS3 and other stakeholders worked to define the programmatic requirements, design the architecture, and begin the development process. Agreement was reached on a standard web-based IT platform for all sectors and a project charter document was developed. Agreement was also reached to add service provider codes and service provider outputs, a milestone in systems strengthening to improve service delivery. The development process will continue through Y2Q4, and is anticipated that the launch of the redesigned PlanRep will take place early in Year 3.

In Y2Q1, top-down or national and regional POA activities continued to move step-by-step towards President’s Office – Public Service Management (POPSM) using POA prioritization of staffing to service provider level as official GOT methodology for staff permit allocation. PS3 and Touch supported Ministry of Health, Community Development, Gender, Elderly and Children (MoHCDGEC) in the workload indicators of staffing need (WISN) plus POA exercise by producing a Mwanza region report and a regional training and data collection exercise in Mbeya region. A significant PS3 and Touch Foundation collaboration achievement in Y2Q1 was

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adding bottom-up POA activities focused on empowering LGAs to use POA to better request, distribute and redistribute staff. POPSM allocates staff permits but LGAs have the right to allocate staff at LGA level such that they are the primary player in staff distribution and redistribution. In Y2Q1, PS3 and Touch Foundation began LGA level POA activities in Mwanza region by meeting with regional and LGA stakeholders to disseminate POA report and engage in dialogue on staff requests and distribution. Mwanza region and LGAs committed to use the WISN plus POA report to determine their most needed types of staff or HR cadres when planning and requesting permits for 2017/18, and also initiated a process to redistribute surplus staff from one health facility to another health facility with a critical HR shortage based on the POA report prioritizing staff allocation.

A Y2Q1 significant achievement in the key intervention of creating a new intersection of PFM and sector service payment systems was design of the payment system for health basket fund (HBF) shift to output-based payment directly to facility bank accounts. PS3 supported two activities contributing to this achievement: dialogue at the RMO’s meeting in Dodoma in October 2016 where support for the HBF shift to output-based payment directly to health facility bank accounts was solidified and an output-based provider payment system workshop where preliminary HBF payment system design and a draft implementation plan were developed.

While the operationalization of the regional/LGA strategy required intensive efforts from the entire team and all PS3 staff supported one or more key interventions, other broad PS3 systems strengthening activities also continued to pick up speed. As with the 26 Phase I LGAs, PS3 will use LGA councilor training to start-up activities in the 67 Phase II LGAs. In Y2Q1, PS3 converted the LGA councilor training materials from 4 days to 2 days and continued to implement the successful councilor training. Ten Phase II LGAs in Shinyanga and Mwanza were trained, building councilor capacity and kicking off citizen engagement and strengthening committee functioning interventions. This exercise will continue throughout the year, targeting 67 LGAs and over 3,000 councilors.

HR component activities in addition to POA also progressed in Y2Q1 including a task force workshop producing a written draft of the new LGA staff orientation manual; joint POPSM, PORALG, and PS3 field work on records management in Kilolo district in Iringa region resulting in agreement on a strategy to support extension of the mandated key word classification system for records management to the LGA level as a pre-condition for records automation; and conducting an HR assessment in education, agriculture and water sectors to identify HR challenges in these sectors and inform GOT and PS3 interventions. Finance component activities into addition to the key intervention of HBF and output-based payment system design included support for “RBF week” and development of a suite of management instruments to enable efficiency increases and streamlining in RBF roll-out; RBF workshop to address RBF data errors; star rating reassessment in Shinyanga; and LGA level resource tracking exercise to increase understanding of the relationship between funds flow and service provider outputs. The OR component made substantial progress in the development of intergovernmental fiscal transfers and complaints handling mechanism OR studies.

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To ensure efficient revenue collection, GOT requires the use of a computerized information system called Local Government Revenue Collection Information System (LGRCIS) for the collection of revenues at the LGA level. In partnership with the World Bank and PORALG, PS3 built LGA staff capacity to use the LGRCIS mobile app for revenue collection. PS3 trained over 900 LGA staff including accountants and cashiers from 13 regions on the use of the LGRCIS mobile app. In the process, PS3 built relationships with Treasurers in all 93 LGAs which is expected to pay dividends at both LGA and national level including relationships with Ministry of Finance and Planning (MOFP).

In Y2Q1, PS3 supported POPSM, e Government Agency (eGA), and PORAG to develop the Government Website Framework (GWF). The GWF is a standard website template which will serve as a platform to inform citizens, private sector, other GOT stakeholders, and DPs; 2) facilitate development of profiles and data dashboards; and 3) develop and link management databases and other management improvements and efficiency increases.

In Y2Q1, PS3 initiated development of a number of program management and communication improvements. These are proactive management improvements and system efficiency increases in response to the large increase in staff coupled with start-up of regional/LGA operations including the management complexities of work in 13 regions and 93 LGAs, and explosive growth of technical interventions and program implementation that will put pressure on PS3 program management and systems.

This Quarterly Report further describes the project’s progress during its first quarter of Year 2 implementation. Section 2 presents overall highlight and accomplishments; Section 3 describes activities by technical component; Section 4 addresses the project’s monitoring and evaluation plan and activities; Section 5 summarizes the management and administration of the project; and Section 6 presents the challenges encountered.

1. GOVERNANCE AND CITIZEN ENGAGEMENT

1.1 Strengthening Citizen Engagement and the Functioning of LGA Committees

1.1.1 Capacity Building for Councilors In Year 1, LGA councilor training served to start-up PS3 in 26 Phase I LGAs, increased the capacity of newly elected councilors, and served as the kick-off for the two interventions of citizen engagement and strengthening committee functioning. In Y2Q1, PS3 modified the four-day Phase I LGA councilor training materials to create two-day Phase II LGA councilor training curriculum. The four-day to two-day training modification was done as an evolution from Phase I to Phase II or robust to standard LGAs to reflect efficiency gains in the training, manage level of effort and program costs, but also enable LGA councilor building in all PS3 LGAs.

This quarter, PS3 conducted training in ten Phase II LGAs in Shinyanga and Mwanza. As with Phase I LGAs, the Phase II LGA councilor training started-up PS3 activities in standard LGAs, built councilor capacity and kicked off citizen engagement and strengthening committee functioning interventions. The standard action plan format together with a menu of activities developed in Phase I LGA councilor training was shared and will be used as a basis for ongoing interventions. A booklet containing an inventory of councilor responsibilities and activities has been developed, presented to councilors, and was warmly received during the training. This booklet will assist councilors to keep a proper record of their activities and will a helpful tool for PS3 mentors.

Ms.Hobokela Mwandenga, Investigation Officer II for PCCB (The

Prevention and Combating of Corruption Bureau) Mwanza, explaining to

Councilors the effects of corruption to the community, during the

Councilors training conducted by PS3 in Mwanza

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The table below shows the LGA councilor training schedule and estimated number of councilors to be trained every month from December 2016 to June 2017. In Y2Q1, Shinyanga and Mwanza LGAs were trained as planned (coded in red color). Next quarter activities are LGA training in the regions and LGAs (coded in green color). In Year 2, PS3 expects to train almost 3,000 LGA councilors while starting-up PS3 and kicking off citizen engagement and strengthening committee functioning in 67 Phase II LGAs in the process.

LGA Councilor Training Schedule in Phase II LGAs

Dec 2016 Jan 2017 Feb 2017 Mar 2017 Apr 2017 May 2017 June 2017

5th - 15th 10th-11th 8th - 9th 9th -10th 4th-5th 11th - 12th 5th - 6th

SHINYANGA & MWANZA

MARA KIGOMA DODOMA IRINGA MBEYA MTWARA

Msalala DC Ushetu DC Shinyanga MC Kahama MC Ukerewe DC Buchosa DC Magu DC Misungwi DC Ilemela MC Mwanza CC

Serengeti DC Bunda DC Musoma DC Musoma DC Bunda TC Tarime TC Tarime DC

Kasulu TC Kasulu DC Kigoma MC Kigoma DC Kakonko DC Kibondo DC 13th - 14th BUKOBA Bukoba DC Bukoba MC Muleba DC Misenyi DC Karagwe DC Ngara DC

Dodoma MC Kondoa TC Kongwa DC Mpwapwa DC Kondoa DC Chamwino DC 13th - 14th MOROGORO Mvomero DC Ulanga DC Kilombero DC Malinyi DC Morogoro DC Ifakara TC 16th - 17th, 2017 Morogoro MC

Mafinga TC Iringa MC Mufindi DC Ludewa DC Makambako TC Njombe DC Njombe TC

Mbeya CC Mbarali DC Kyela DC Rungwe DC Mbeya DC Sumbawanga MC Nkasi DC

Newala TC Newala DC Mtwara MC Mtwara DC Tandahimba DC Nanyumbu DC Masasi DC 8th - 9th LINDI Lindi MC Lindi DC Nachingwea DC Liwale DC

Total LGAs scheduled for training per month

10 7 12 13 7 7 11

Estimated total number of Councilors to be trained per month

293 187 360 443 167 265 371

Total LGAs to be trained Dec 2016 to June 2017

67

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1.1.2 Strengthen the Functioning of LGA Committees In Year 1, PS3 national and LGA dialogue, regional launches and activities generated evidence on a number of governance challenges at both higher and low local government levels. PS3 is strengthening the functioning of both levels by supporting the GOT to ensure that LGA committees are properly constituted and that they execute their mandated functions according to existing standing orders, guidelines, rules, and regulations.

In Y2Q1, PS3 continued to support the improvement of LGA committee standing orders and guidelines. As one of their first tasks, governance mentors began the process of identifying gaps in LGA standing orders and gathering guidelines. During Y2Q1, mentors identified existing draft bylaws which guide local lower government committees. These draft bylaws were shared with PORALG for approval prior to dissemination to LGAs. Mentors also received model standing orders from PORALG, which will be used to guide the improvement of LGA standing orders. Next quarter’s activities will continue investigation and development of LGA standing orders and guidelines.

Next quarter activities:

Continue to identify gaps in LGA standing orders, guidelines and bylaws

Access and clarify with GOT existing legal documents (e.g. standing orders, guidelines, bylaws) which govern functioning of lower level governments

Develop LGA committee standing orders, guidelines, and bylaws with GOT

Finalize work plans with Phase I LGAs to strengthen committee functioning

Mentor RS, CMT and committee clerks on their roles and responsibilities in relation to the committees and related LGA management

In Phase I LGAs, develop plans to strengthen existing reference libraries to improve use of information

1.1.3 Strengthening citizen engagement In Y2Q1, PS3 worked to developed LGA web application systems including LGA websites which are critical for sharing information with citizens and increasing transparency and accountability. PS3’s role is to engage in dialogue with LGAs to promote benefits of sharing information with citizens, support LGAs to decide which documents to upload to the LGA website, and develop mechanisms to maintain and sustain this process.

In Y2Q1, PS3 met with Policy Forum, Civil Society Organizations (CSOs) and Kiabakari Secondary School students numbering desks

contributed by parents through efforts done by councilors in

sensitizing citizens’ engagement in development activities

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private sector organizations in Iringa DC and Kilolo DC on their demand for information. An overall observation made by all consulted stakeholders was that availability of information, and especially key documents such as budgets and program reports, would reduce transaction costs related to acquiring information for CSOs, the private sector and individual citizens. In Y2Q2, PS3 will convene meetings with government officials to agree on documents that LGAs can upload without violating government or privacy regulations.

Also in Y1Q2, PS3 and POPSM conducted a rapid assessment (discussed under OR component section) on the complaints handling mechanisms at LGA level. The results will inform both POPSM and PS3 interventions and next steps for Y2Q2 and beyond.


Engage PORALG, RS, LGAs, ALAT, etc. to identify documents to be included on LGA websites

Share lessons learned and success stories with GOT and DP stakeholders

1.2 Strengthening PFM Systems

In Y2Q1, PS3 supported a package of interventions intended to create a new intersection between PFM systems and sector service payment systems, including service provider codes in Epicor. PS3 also supported joint interventions targeted at facility level financial management and strengthening local government revenue collection information system (LGRCIS) including mobile applications and making LGRCIS and Epicor interoperable.

In Y2Q1, PS3 organized a meeting in Morogoro with PORALG, SoftTech (company with Epicor license), and UCC on technical aspects of revising chart of accounts to add service provider codes into Epicor, enabling extending accounting or booking of expenditures to the service provider level to improve accounting and management and increase transparency and accountability. It was agreed that Epicor chart of accounts can be adapted to include service provider codes to account for expenditures at the service provider level. In addition, technically the Epicor asset management module can be operationalized including the asset register template.

In Y2Q1, during deployment of regional program managers and mentors to regions and LGAs, PS3 began to collect data on the LGA current asset registers. Current asset registers were collected in Chunya and Biharamulo district councils in Mbeya and Kagera regions, respectively. A comparison of how LGAs are currently maintaining asset registers and the asset register required by Epicor will contribute to development of step-by-step plans to activate the Epicor asset management module, which will enable councils to generate their financial report in compliance with the IPSAS.

PS3 participated in a Public Finance Management Reform Program IV (PFMRP IV) review of regional/LGA PFM interventions held in Mtwara in November 2017. Major findings or impressions were that there is currently little or no direct linkage between public finance

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management (PFM) reform and service delivery improvement, and there are opportunities for PS3 to collaborate with PFMRP IV national, regional, and LGA level technical assistance to both strengthen PFM and create the new PFM and sector service payment system intersection intended to improve equity, efficiency and service delivery. PS3 also presented to the PFM Development Partner Group (DPG) which could lead to expanding PS3 collaboration with DPs and contribute to the design of PFMRP V. In addition, PS3 met with the European Union to discuss the intersection of PFM and sector service payment systems and its potential to improve service delivery. This collaboration will continue and PS3 will engage in dialogue related to development of a new European Union PFM project. Finally, PS3 participated in the health PFM technical working group (TWG) meeting where upcoming health sector Public Expenditure and Financial Accountability (PEFA) assessment was discussed and PS3 will continue to collaborate with this exercise.


Determine Epicor customization costs to include service provider codes in Epicor and activate asset management module

Together with PORALG, SoftTech, and UCC, engage in dialogue with MOFP on including service provider codes in Epicor and activating asset management module

Compare LGA current asset register collections and Epicor asset register based on asset data collected from selected LGAs

Further develop collaboration with PFMRP IV international technical assistance

Liaise with Ardhi University to facilitate land valuation for LGAs and collaborate with PFMRP IV to leverage strengthening land valuation and separation of cost of land and buildings to reduce qualified audit opinions

Conduct IPSAS training for remaining 67 phase II LGAs to strengthen use of international standards in accounting systems, improve final accounts, and reduce qualified audit opinions

Dialogue with PPRA on issues related to procurement using funds in facility bank accounts including thresholds stipulated by guidelines

Develop plans to support RS and LGAs to improve transparency and accountability through formal and documented internal controls by training auditors in the use of the internal audit computerized packages (ADEA and Teammate)

2. HUMAN RESOURCES

2.1 Strengthen HR Planning and Distribution

2.1.1 WISN plus POA in the health sector Y2Q1 HR planning and distribution activities focused on the key intervention of workload indicators of staffing need (WISN) plus prioritization and optimization (POA) intended to better allocate staff permits, distribute and redistribute staff to the LGA service provider level. Continuation of regional WISN plus POA activities and initiation of LGA level distribution and redistribution activities informed by POA are described in the sections below.

WISN plus POA in Mwanza Region

After completion of the WISN training and data collection exercise in Mwanza in Year 1, Touch Foundation and PS3 entered data into the POA program to determine staff allocation priorities to the service provider level. In Y2Q1, PS3 and Touch Foundation presented POA findings for Mwanza region to MoHCDGEC with some complexities arising in this policy dialogue as described in the Challenges section.

WISN plus POA in Mbeya Region

In Year 2, the PS3 and Touch Foundation collaboration will support MoHCDGEC to scale up WISN plus POA to other BRN regions. In Y2Q1, MoHCDGEC supported the WISN training and data collection exercise in Mbeya region. Four participants from each Mbeya LGA were trained on WISN and POA followed by data collection. PS3 and Touch contributions to the training were aimed at sensitizing participants on POA; enhancing participant understanding of evidence-based permit allocation requests; introducing optimal use of available human

District Human Resources Officer for Misungwi District Council, Ms.

Mariam Makomba, explaining her experience in reallocation of staff in

Misungwi during the WISN plus and POA dissemination report meeting

in Mwanza

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resources through LGA distribution and redistribution; and stressing the importance of good quality data to support portraying the actual situation on the ground in relation to staff workload.

PS3 and Touch had identified a need to improve WISN report structure and content and agreed with MoHCEGEC on a joint report writing process, also linked to improving MoHCDGEC ownership of POA. PS3 supported and facilitated a report writing workshop that was held in Bagamoyo in December 2016. The quality of draft WISN reports has improved in terms of content, with some LGAs beginning to identify priority facilities and cadres for distribution and redistribution.

LGA Level Distribution and Redistribution

National and regional level WISN plus POA intervention is intended to move step-by-step towards POPSM using POA prioritization of staffing to service provider level as official GOT methodology for staff permit allocation. However, this is a long process that may not pay dividends for years. In addition, LGAs have the right to allocate staff at LGA level such that they are the primary player in staff distribution and redistribution. During the quarter, PS3 in collaboration with Touch Foundation began the process of working with LGAs to inform them about POA and support them to begin to develop staff distribution and redistribution strategies and plans.

In Y2Q1, PS3 and Touch Foundation developed and disseminated Mwanza region reports to regional and LGA human resource planners and managers. The team engaged in dialogue with RHMT, and LGA CHMTs, district human resource officers, district health secretaries, and health management information systems (HMIS) focal persons from three LGAs, namely, Sengerema DC, Nyamagana and Ilemela Municipalities. The dialogue aimed to:

Present WISN plus POA report and the redistribution report

Guide LGAs in preparation of HR redistribution plan and budget

Demonstrate how to use the WISN plus POA report to develop and submit their HR request to POPSM

Prepare for distribution of newly recruited HR

The feedback received from this engagement was very positive. RHMT and CHMTs agreed to use WISN plus POA report to develop staff permit requests, distribution and redistribution. Also, they committed to use the WISN plus POA report to determine their most needed types of staff or HR cadres when planning and requesting permits for 2017/18. Evidence of the potential for small redistribution successes that cumulatively could have a significant impact in underserved areas is the RMO instructed the Regional Health Secretary to write an official letter to Magu’s district director to redistribute surplus staff (as presented from WISN plus POA findings) to one facility with a critical HR shortage.

The Mwanza RMO requested PS3 and Touch Foundation support for another two-day workshop in early January 2017 to bring together LGA HR planners and managers (district human resource officers, district medical officers, health secretaries, HMIS focal persons) to review and align all

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planned recruitment permit requests using WISN plus POA recommendations. According to the Ministry of Finance budget guideline, January is the time for staff and personnel emolument revision by RHMT and CHMT before they resubmit to POPSM. The RMO also recommended that the RHMT quarterly HR review meetings monitor HR data and provide updates on progress on agreed action points related to HR availability and shortages. PS3 and Touch Foundation also plan to use these quarterly meetings to monitor regional and LGA progress is improving staff allocation, distribution and redistribution to service provider level.

POA IT Platform Refinement

In Y2Q1, PS3 HR and IS components began technical discussions with Touch Foundation on refining and increasing user friendliness of the IT platform for operations, institutionalization, and increasing MoHCDGEC ownership of POA.

WISN plus POA next quarter activities (in collaboration with Touch Foundation)

Complete Mbeya region WISN plus POA report

Scale up of WISN plus POA in Morogoro Region

Obtain data from prior WISN exercises in other regions to produce WISN plus POA reports

Support January 2017 follow-up Mwanza meeting to review and align permit allocation requests to POPSM

Develop and disseminate Mbeya POA findings and begin to engage in regional and LGA level dialogue in Mbeya based on the experience in Mwanza

Develop IT platform refinement strategy and plans

Continue USAID, PS3, and Touch POA strategy development taking into account experience with top-down and bottom-up approach, ongoing national policy dialogue with all stakeholders, and specific activities to increase MoHCDGEC involvement and ownership

Regional Health Secretary for Mwanza Region Mr. Danny Temba

emphasizing to participants to be fully engaged in the sessions during the

WISN Plus and POA dissemination Report meeting held in Mwanza

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2.1.2 POA in other sectors Expanding POA across sectors is an intervention intended to maximize PS3’s multi-sectoral comparative advantage and enable national implementation as meetings with POPSM have made it clear that POPSM wants POA to be across sectors and may be reluctant to implement POA only in the health sector. In Y2Q1, PS3 invited officials from education and agriculture to the Mbeya WISN plus POA exercise to get early buy-in from these two sectors and start thinking about methodology for determination of need and POA algorithm in other sectors. The HR assessment described in the HR Knowledge Generation and Advocacy section below will also contribute to design and development of methodology for determination of need and POA algorithm in other sectors.

2.2 Strengthen HR Retention

2.2.1 Strengthen LGA New Staff Orientation In Year 1, PS3 engaged in dialogue with PORALG and agreed to collaborate on development of a new LGA staff orientation manual and process. The manual and orientation process will address one of the key HR challenges that emerged from discussions in PS3 regional launches: the absence of a clear guideline for orienting new local government staff. This core orientation is required for all staff in all sectors. PORALG established a task force including representatives from POPSM, sector ministries, RS, and LGA to develop the new LGA orientation manual and process. The task force engaged in a number of process steps including developing plans, field visits to assess situation and requirements gathering, and design of the manual. In Y2Q1, PS3 supported a task force workshop to complete writing of the new LGA staff orientation manual. The task force completed its assignment in December 2016.


Finalize new LGA staff orientation manual including joint GOT and PS3 marking and branding

Submit new LGA staff orientation manual to PORALG for approval, and manual approved

Print and disseminate the manual to LGAs

HR mentors begin to support RS and LGAs to test and use the new LGA staff orientation manual

2.2.2 Strengthen monetary and non-monetary incentives for retention

In Year 2, PS3 will take a two-pronged approach to strengthening monetary and non-monetary incentives for retention: 1) at the national level, engage in dialogue and support POPSM and PO-RALG to develop plans and other mechanisms or systems to operationalize National Pay and Incentive Policy; and 2) at the LGA level, support LGAs to develop and implement customized incentive packages to address their unique challenges. In Y2Q1, PS3 initiated dialogue with POPSM on monetary and non-monetary incentives for retention. POPSM has developed a

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guideline and template that assists LGAs to develop customized monetary and non-monetary incentives for retention. This guideline and template will be helpful when PS3 initiates support to LGAs to develop customized incentive packages following the deployment of HR mentors. In addition, the HR assessment described in the HR Knowledge Generation and Advocacy section below included exploration of current practices of monetary and non-monetary incentives for retention in the LGAs.


At the national level, engage in dialogue with POPSM, Remuneration Board, and PORALG to develop a roadmap for institutionalization of customized monetary and non-monetary incentives for retention

HR mentors begin to facilitate and support Phase I LGAs to develop customized monetary and non-monetary incentives for retention

2.3 HR Efficiency, Productivity and Performance Management

2.3.1 Improve HR Personnel Records Management and IS improvements

Based on a request from PORALG in September 2016, PS3 will support POPSM and PORALG to improve records management particularly HR personnel records management including automation. GOT use of manual or hard copy personnel records contributes to many system challenges including a filing mess, and results in inefficiency and inability to effectively place and manage staff. Strengthening records management including automation has potential to address many systems challenges and substantially increase efficiency and productivity as records and information becomes more accessible and usable.

Left: Files randomly kept on wrong boxes, and right: Records room used as store room with old computers

and flags

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In Y2Q1, PS3 supported the President’s Office-Records and Archives Management Department (PORAMD) and PORALG to improve HR personnel records management and record keeping in LGAs. The team conducted a ‘fact finding’ exercise in Iringa and Kilolo DC and found that files were kept in used old boxes, records were not organized, and files were not securely stored per GOT standards. In addition, LGAs are using the alpha numerical system, an outdated filing system and not compatible with the file movement register system. Following the visits, PORAMD, PORALG, LGAs, and PS3 agreed on a strategy to support extension of the mandated key word classification system for records management to the LGA level (it has already been implementation at national and regional level), which is a pre-condition for automation of records management.


Finalize records management plans with PORAMD and PORALG

Train Kilolo DC on the use of the keyword file classification system

2.3.2 Strengthen HR performance management including OPRAS In Year 1, PS3 learned about OPRAS challenges during regional launches and other LGA level policy dialogue forums and developed a two-pronged strategy to first improve OPRAS goal setting as the first step driving HR performance management and review, and then improving the entire OPRAS cycle. However, OPRAS policy and guidelines require that OPRAS goals come from LGA strategic plans which creates problems in LGAs without updated strategic plans and also because the nature and specification of objectives in strategic plans are not intended to serve the same purpose as the specification of staff goals or competencies. Internal PS3 brainstorming resulted in the idea to develop HR frameworks specifying HR objectives and competencies to translate strategic plans into OPRAS goals for staff performance management.

In December 2016, PS3 met with POPSM, Public Service Commission, and PORALG to further discuss OPRAS challenges, engage in dialogue on development of an HR framework translating strategic plans to OPRAS goals, and develop concrete steps for OPRAS improvement. Capacity challenges raised were inadequacies in conceptualization, understanding, and management of the OPRAS cycle. Systemic challenges mentioned were issues with the rationale and status for current accountability procedures, efficiency and effectiveness of OPRAS as the tool is considered cumbersome to different cadres of staff, lack of relevancy of OPRAS to other performance management processes (e.g. promotions). On incentives and motivation, there was agreement on the need to assess factors that motivate and demotivate staff from implementing OPRAS and also the effectiveness of compliance and enforcement mechanisms. While the dialogue about OPRAS challenges and system improvements was very productive, opinions varied on whether the main problem is largely capacity with a corresponding solution of capacity building or is largely systemic with a corresponding solution of improving the OPRAS system and procedures. POPSM, Public Service Commission, PORALG, and PS3 agreed to continue to work together with a next step of an LGA fact finding mission to solidify conclusions and plans to improve OPRAS.

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Conduct a fact finding field visit to assess the status of OPRAS in LGAs

Continue to engage in dialogue and generate knowledge about OPRAS improvements and systems strengthening

2.4 HR Knowledge Generation and Advocacy

2.4.1 HR Situational Analysis in Education, Agriculture and Water Sectors

In Y2Q1, PS3 initiated an assessment of the HR situation in other sectors including education, agriculture, and water. The HR knowledge base is extensive in the health sector but less well developed in other sectors. The assessment or situational analysis is intended to serve many purposes or contribute to many PS3 interventions including general HR planning; POA and HR distribution in other sectors; HR retention; HR performance management; institutionalizing into GOT systems information on staffing at service provider for sustainable service delivery improvements; and knowledge on short-term tracking of staffing to service provider level for both PS3 technical interventions and M&E indicators.

The assessment of the HR situation followed a systematic process commencing with conceptualization and designing a vision or roadmap on how to develop insight into HR issues to inform PS3 activities and bring the attention of relevant sector and central ministries to HR challenges, particularly at the service provider level. Prior to the LGA level assessment, consultative meetings with Ministries of Education, Agriculture and Water were conducted to engender stakeholder engagement and to learn stakeholder HR perspectives. Relevant documents like BEST and data sets from the government information portal were reviewed to determine gaps that required active information search in the Phase 1 LGAs. Forms that were tailor-made to capture appropriate information per each sector were designed. These were validated in a pre-fieldwork meeting whose participants included: PORALG, POPSM, MOEST, MALF, TEA, TIE, Commission, LGA focal persons, district HR Officers,

Villagers in Kiwanja, accessing clean water from the water point,

while the chairman of the water users association explaining how

water usage is managed

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and PS3. The meeting also reached consensus on information gaps, especially at service provider level.

All 13 PS3 regions participated in the assessment that focused on Phase 1 LGAs. In each region, one LGA was randomly selected for field work. For the education sector, 4 schools in each LGA participated in the assessment with 2 primary and 2 secondary schools, and 2 schools nearest and 2 schools farthest from LGA headquarters. Similarly, for agriculture and water sectors, irrigation and water users associations were assessed respectively. A team of 5 to 7 people was assembled for the assessment in each LGA comprised of the sector ministries and LGA officers for water and agriculture.

The assessment data was collected in a period of 10 working days in each of the 13 Phase 1 LGAs. Initially, meetings were held with the district executive director and department heads to appraise them of the task and to obtain the necessary support including LGA personnel to work with the data collection teams. Assessment tools were reviewed and data sources (documents and officials) were identified. Schedules for visiting LGA workforce at service delivery points were planned and executed. Facilities visited included primary schools, secondary schools, irrigation projects and water service delivery points. Both qualitative and quantitative information was gathered including pictures. Various methods were used to gather information including extraction from electronic systems (LGRCIS, Lawson systems), interviews with heads of departments at LGA level and heads of schools, focus group discussions with teachers at each selected school, water user association, and irrigation scheme together with beneficiaries of irrigation schemes. The assessment focused on broad areas of HR availability, shortages, permits, distribution, service outputs, challenges impacting on service delivery and the feasibility of tracking health workforce down to service delivery level.

Next quarter activities

Finalize data analysis, write report, and disseminate findings to Tanzanian stakeholders to inform development of plans to improve HR planning, retention and management in education, agriculture and water sectors.

Housing Scheme for retention for teachers at Ifumbo in Chunya.

Each block has 4 self contained units

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Use HR assessment information to further design and develop PS3 interventions including POA across sectors, service provider codes and service provider outputs for PlanRep redesign and sector service payment systems, development of strategies and plans to improve Lawson system, improving HR retention and management at service provider levels, and developing methodology to collect data for M&E plan impact indicator tracking PE changes at service provider level.

2.4.2 HR Advocacy In November 2016, PS3 attended the joint annual health sector review policy forum (JAHSR) to advocate for adoption and inclusion of WISN plus POA into the national health sector policy priorities for the financial year 2017/2018. The JAHSR is a forum that takes place once every financial year and is organized by MoHCDGEC to set policy priorities for the health sector. In this annual policy forum, PS3 shared WISN plus POA findings and results with the JAHSR stakeholders. As a result, two recommendations were adopted in FY2017/18 health sector HR policy priorities: use of evidence based HR redistribution using WISN plus POA results and ring fencing the incentives for newly employed staff. This will enable LGA level implementation of the newly developed staff orientation manual and LGA customized incentive packages.

Also in Y2Q2, PS3 met with ministries and other stakeholders from education, agriculture, and water sectors to share information and experiences on HR challenges and successes, and identify common HR challenges across the three sectors. Professional associations such as Tanganyika Farmers Association (TFA), Agricultural Council of Tanzania, Tanzania Pastoralists Association, Tanzania Commercial Farmers Association, Tanzania Horticultural Association, Tanzania Home Economics Association (TAHEA), Mathematical Association of Tanzania (MAT), Young Scientists Tanzania, Agriculture Non-State Actors, Tanzania Society of Agriculture Extension and Education, Tanzania Teacher's Union (TTU) and Tanzania National Nursing Association (TANNA) also attended.

Observations raised and discussed by the participants include:

There is 57% national shortage of required HR in the agriculture sector

Poor working environment is a low motivation and retention factors for teachers in remote LGAs

A good number of teachers abandon their careers and move to other professions which has been draining HR from the education sector

There are critical shortages of specific cadres in the education sector including science teachers, mathematics teachers, English language teachers, and laboratory technicians

Most of the incentives provided at LGA level such as housing allowances, utilities, car loans, motorcycles, and free housing favor senior level staff over lower level cadres who are often critical to service delivery

LGAs experience delays in getting staff employment permits from the central government

Recruitment is done centrally by national government, hence LGAs often receive staff who do not fit the job

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Develop HR materials to inform LGA committees and central level about key cross-sector HR issues

Targeted LGA level advocacy related to POA, pay and incentive packages, improving OPRAS, and other PS3 priorities

3. FINANCE

3.1 Support Introduction of Single National Health Insurance (SNHI)

In Y2Q1, PS3 continued to follow the Single National Health Insurance (SNHI) act and heath financing strategy (HFS) approval process. Two acts have been submitted to the Cabinet Secretary and are under review. PS3 participated in a field visit with GOT Community Health Fund (CHF) implementers in Moshi in October 2016 to learn from the implementation experience of improved CHF by Pharm Access. This was part of the process of strengthening the national CHF model to evolve towards SNHI and better function by establishing clear definitions of purchaser and provider roles. In addition, PS3 initiated dialogue with National Health Insurance Fund (NHIF) on the modalities of reforming NHIF payment systems to move towards better output based payment systems required for SNHI purchasing of health services.

Next steps:

Coordinating closely with USAID, PS3 will continue to follow SNHI act and HFS bill and address any questions or comments from the cabinet secretariat and the cabinet as requested

PS3 in collaboration with GIZ and MoHCDGEC will organize an iCHF workshop that aims at disseminating the design of iCHF to wider stakeholders including service providers

3.2 Improve Service Payment Systems

3.2.1 Support Results Based Finance (RBF) implementation

Planning and Support for RBF Roll -out – RBF Week

In Y2Q1, PS3 participated in the World Bank-hosted “RBF Week” in Dar es Salaam and Mwanza. RBF week participants included GOT (MoHCDGEC, NHIF, MSD, and PORALG), World Bank, USAID, and USAID’s funded Global Health Supply Chain (GHSC) project. PS3 provided support leading up to, during and after RBF Week. Specifically, PS3: 1) consulted with World Bank organizers to help define the objectives and agenda of RBF Week; 2) consulted with World Bank data analysts to take stock of known performance successes and challenges; 3) participated in RBF week discussions; 4) took notes and provided written summaries of discussions; 5) provided technical input into revisions to CHMT indicators and PORALG’s health facility planning guidelines; and 6) engaged in dialogue with the National RBF Coordinator to develop a concept note for concrete activities.

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Following “RBF week,” in Y2Q1 PS3 collaborated with GHSC to develop instruments for MoHCDGEC and PORALG RBF Units to enable RBF roll-out and support management of the RBF system. Leaders and implementers of RBF can benefit from a set of instruments that will support them in managing the streamlining and efficiency gains required for successful RBF roll-out, different phases and activities in RBF, tracking RBF implementation and identifying and addressing inevitable bottlenecks, monitoring RBF outputs and outcomes, and sharing knowledge and learning within and across regions on effective roll-out strategies. The management suite includes flowcharts to map RBF processes and identify key bottleneck and critical path points, critical path logic model and dashboards featuring select critical path indicators, and roll-out and implementation tracking spreadsheets to facilitate the tracking of RBF-related activities by these key actors.

Facilitation of Data Management Workshop

In collaboration with the World Bank and the University of Dar es Salaam Computing Engineering, PS3 designed and facilitated a six-day data management workshop for 55 participants drawn from MoHCDGEC, PORALG, RHMTs from Shinyanga and Mwanza regions, and CHMTS from five LGAs in Shinyanga and eight LGAs in Mwanza regions. The workshop engaged participants through group sessions focusing on real facility data aimed at identifying causes, challenges and solutions for facility data errors from DHIS2 that affect RBF data and impact RBF program implementation. In addition, participants were oriented on data analysis.

The workshop took place in Mwanza region, and was also attended by Mwanza RMO Dr. Leonard Subi, and new Program Manager for Primary Health Care System Strengthening from MoHCDEC, Dr. Georgina Msemo. During the workshop, participants discussed system bottlenecks such as inability of DHIS2 to archive approved RBF invoices and developed plans to address them. Moreover, it was agreed that the HMIS focal person should make sure that facilities have a catchment population taken from National Bureau of Statistics (NBS) as calculation and comparison of RBF indicators (not to mention planning and management of service delivery) is hard without a consistent population denominator. Upon completion of the workshop, all participants were required to sign a letter of commitment indicating that they will use this knowledge to improve quality of facility data for RBF program implementation.

In keeping with an overall commitment to improve the quality of data and efficiency on reporting, PS3 and MoHCDEC agreed on the following:

PS3 mentors will work collaboratively with regional HMIS focal persons to develop and implement a mentorship activities across all councils in Shinyanga and Mwanza. PS3 mentors already provided access to DHIS2 access to identify critical issues that will guide capacity building process

Further discussed with MoHCDEC ICT officer, feasibility and process to develop and utilize the use of mobile Apps that will allow facilities to directly enter and report facility data into the DHIS2. The parties agreed to begin this process in early 2017

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Support Star Rating Re-Assessment in Shinyanga Region

In Y2Q1, PS3 in collaboration with DANIDA provided support to the MoHCDEC quality assurance department to carry out a star rating re-assessment of 53 health facilities in all LGAs in Shinyanga region. The purpose was to re-assess zero star health facilities to determine whether they should be upgraded and become eligible to be enrolled in the RBF program, and also to gain experience and document lessons learned to guide development of a cost effective way to re-assess health facilities in other regions. A total of 43 health facilities with zero star were re-assessed, of which 39 facilities will be enrolled in the RBF program. In addition, 12 facilities selected on “quick win criteria” were re-assessed to determine if there has been a significant improvement after initial assessment and implementation of RBF program. Findings included that leadership and supportive supervision play a major role in the improvement of facilities. Shinyanga DC presents the best example as some facilities were able to emerge from star zero to star two or three.


Dialogue to finalize development and begin implementation of management suite and other interventions to solidify and streamline RBF program in preparation for roll-out

Support further strengthening of all aspects of RBF data including reducing data entry errors, performing RBF data analysis, dialogue on development of an RBF invoicing and financial management module and DHIS2 mobile application

Present star rating re-assessment results and experience on cost effective ways to conduct star rating reassessment in the remaining regions to health financing technical working group, RHMT and CHMT meetings and other technical forums, and support RBF unit to develop procedures to enroll health facilities with upgraded star ratings into the RBF program

Continue to promote and develop mechanisms to further link RBF to PFM realignment and other health purchasing improvements on the road to SNHI

3.2.2 Support improvement in public sector service payment systems

Health Basket Fund (HBF) Dialogue

During this quarter, PS3 continued engagement with key HBF implementing partners to discuss design of the new HBF modality of shifting to output-based payment directly to service providers’ bank accounts. PS3 had initially developed a concept note proposing an approach of PHC capitation payment for PHC providers, including adjustments needed to address equity. The concept note also highlighted required PFM realignments.

PS3 presented and discussed this concept note with select regional medical officers (RMOs), district medical officers (DMOs), representatives from PORALG and MoHCDGEC and HBF partners during the RMO’s meeting in Dodoma on October 17, 2016. Participants suggested that service providers must be given autonomy to decide how they will allocate HBF funds across priority services and there should not be limitations in terms of what services should be

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financed by HBF. In addition, the participants suggested prioritization of facility level financial management support in order to get service providers ready for the new modality of disbursing HBF funds. Following the Dodoma meeting, in Y2Q1, PS3 continued engaging the HBF coordinating team of the MoHCDGEC in order to refine design, including participating in a meeting with the MoHCDGEC Director of Policy and Planning to explain PS3 support to HBF and other interventions that require engagement of the MoHCDGEC.

Output-Based Provider Payment System Workshop

In December 2016, PS3 supported an output-based provider payment system workshop in Bagamoyo for participants from MoHCDGEC, NHIF, PORALG and PS3 governance, finance, and IS component staff. The purpose of the workshop was technology transfer of output-based payment methodologies and preliminary design of new payment systems for Tanzania. Methodologies for which technology was transferred included cost accounting; payment system specification of set absolute fee schedules or tariffs vs. budget neutral formula-based payment systems including base rate, relative weights and payment adjusters; and PHC and hospital payment system practical principles, design steps, and impact simulation. Preliminary design and a draft implementation plan were developed for the HBF output-based payment system discussed above, and for a refinement of the NHIF payment system that will allow strategic health purchasing under SNHI.

Automated Excel and Access systems and programs developed or adapted during the workshop were also transferred to GOT participants including cost accounting, HBF payment system design, and initial NHIF hospital payment analysis and refinement. The Access HBF program included all parameters of the preliminary payment system design with options to revise the system design built into the automated system. The NHIF payment system analysis included a conversion of the absolute fees to formula-based relative payment weights, and analysis and preliminary recommendations for refinement of payment groups.


Write-up and submit to MoHCDGEC and PORALG the draft HBF payment system specification and implementation plan developed during the output-based provider payment system workshop

Write-up and submit to MoHCDGEC and PORALG the draft NHIF payment system refinement and implementation plan developed during the output-based provider payment system workshop

Conduct a workshop with MoHCDGEC to further develop design of HBF facility financing modality. This workshop will be held in parallel with the facility financial management workshop that will be conducted in February. There is a close link between the need to build financial management capacity at service provider level and the implementation performance of the new HBF modality.

Engage in dialogue with MMoHCDGEC and NHIF on next steps in NHIF payment system refinement, integrating and strengthening information and claims management systems, and building NHIF strategic purchasing capacity

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3.3 Strengthen Intergovernmental Fiscal Transfers from Central Government to LGAs

Based on ongoing internal and external dialogue during the quarter, PS3 is consolidating finance component intergovernmental fiscal transfer (IGFT) activities and the OR IGFT study in the short-term (also see OR component section). IGFT technical interventions and implementation steps are not yet clear and it is expected that the OR study will inform them. The OR study will explore key issues relating to strengths and challenges of the IGFT system in Tanzania and provide recommendations for later translation into GOT and PS3 interventions in support of strengthened systems for management of IGFT.

3.4 Strengthening Facility-Level Financial Management and Resource Tracking

3.4.1 Strengthening service delivery-level financial management and reporting

In Y2Q1, PS3 initiated dialogue with PORALG on the need to develop a simple standardized financial accounting and reporting system at service provider level. Dialogue resulted in the conclusion that a workshop was needed to bring together stakeholders who are providing or responsible for financial management support at service provider level in order to share best practices and develop a standardized system across sectors (most likely starting in health facilities and schools). The workshop is scheduled to take place in February 2017. The workshop is expected to develop preliminary design of the simple standardized financial accounting and reporting system, and develop an action plan for implementation of the system including training and mentoring of LGAs and service providers.

To make service providers more visible in GOT systems and improve financial management and service delivery, the finance component team is collaborating with the IS and PFM teams to support PORALG to redesign PlanRep including introducing service provider codes and clear links between fund flows and service outputs. In this case, it will be easier in the future for service providers to provide detailed financial reports because plans, budgets, and budget execution or payment will be done at the service provider level.


Conduct a facility financial management systems workshop to develop standardized accounting and reporting systems that will be used across sectors with PORALG, selected LGAs and service providers, MoHCDGEC, and other partners

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3.4.2 Resource tracking In Y2Q1, PS3 conducted a resource tracking exercise in three regions, involving six LGAs. The objective was two-fold: first to analyze expenditure in health and education sectors pertaining to sources of funds, management of funds, types and objectives of the respective expenditures; and second to qualitatively analyze challenges facing the health and education sectors with respect to resource allocation and utilization using qualitative information from service providers.

Key findings from the exercise indicate that as expected, central government financing accounts for the largest proportion of LGA funding for both health and education sectors. The share of LGA own source revenue in total financing is small. A large proportion of funds were reported to be spent on primary service providers in both sectors (i.e. primary schools and dispensaries and health centers) in most LGAs. For example 83% of total expenditure in Uvinza DC was spent on primary schools while secondary school spending was 17% in financial year 2014/15. There were huge variations across LGAs in terms of the allocation of funds to dispensaries and health centers. For example, while Buhigwe DC spent about 57% of their total LGA spending on dispensaries, Chunya DC only spent 17% of total LGA expenditure on dispensaries. In this case, there are some inequities in the allocation of funds across service providers when comparing LGAs.

PS3 also explored how different sectors define service providers and services that are produced by the service providers to directly link the resource tracking exercise to informing PlanRep redesign, service provider codes in Epicor, and sector service payment system improvements. It was observed that the definition of service providers was very clear in both education and health sectors. However, there were varying opinions in terms of what are the service outputs provided in the two sectors. The definition of service providers and service outputs in other sectors proved to be a bit challenging. Some suggestions from the respondents on what should be service providers and service outputs in other sectors are as follows:

Community owned water supply organizations (COWSOs) and the LGAs themselves for the water sector, private contractors and the LGAs themselves are service providers in the infrastructure or works sector. LGAs and agents for fertilizer and seeds supply were considered to be service providers in agriculture sector.

Service outputs provided by the water sector were suggested to be supply of water, identification of water sources, , and maintenance and repair services. Service outputs in the works sector are road and building construction and maintenance undertaken by private contractors. Service outputs in the agriculture sector are extension services, supervision of cooperative societies and distribution of seeds and fertilizers. It is clear that some of the aspects that were mentioned as service outputs are actually inputs to facilitate service output delivery. For example, supply of seeds and fertilizer is a clear input that helps to produce crops. Also, identification of water sources may be considered as input.

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The objective of exploring definitions of service providers and service outputs across LGAs and sectors was to assess whether there is a match between flows of resources and service outputs (except in RBF facilities that have quarterly action plans which is among the conditions for securing RBF funds). Most service providers had no clear annual plans that explain the intended service outputs for each year. In this case, budgets that are prepared by LGAs and service providers have no clear match with intended service outputs.

While service providers are making efforts to follow proper procedures in using their financial resources, there is no standard format of financial accounting and reporting. This is an area that requires immediate intervention, especially at the time when the country is adopting improved output based payment systems.

Finally, PS3 also supported the revision of NHA 2013/14 and 2014/15 tables. These have now been shared to the MoHCDGEC and circulated to stakeholders.


Finalize LGA level resource tracking exercise, disseminate and solidify link to other PS3 interventions requiring information on service providers and service outputs including PlanRep redesign, service provider codes in Epicor, and creating a new intersection between PFM and sector service payment systems

Support the MoHCDGEC to complete two NHAs analysis reports, and begin analysis of NHA 2015/16

Initiate dialogue to institutionalize NHA and resource tracking expertise and process within other academic institutions (i.e. Mzumbe and KCMC universities)

4. INFORMATION SYSTEMS

4.1 Support Improvement of ICT /LAN and Operations at Regional/LGA Level

In Y2Q1, PS3 with PORALG, eGA and other stakeholders completed the categorization of LAN requirements needed to strengthen LANs in PS3 93 LGAs and the 13 RS. In Y2Q2, information system mentors will work with LGAs to develop implementation plans to expand or install the LAN. Findings from the PS3 and PORALG ICT assessment categorized LAN requirements into four groups:

Description LGA/RS Category

LGAs with no LAN at all 18 1

LGAs with bad semi LAN and no access to important systems 12 2

LGAs with semi LANs & limited access to important systems 71 3

LGAs with fully structured LANs 5 4

The investment required is estimated by category. These estimates will guide LAN investments at the LGA level in Year 2:

CATEGORY No COST PER LGA/RS TOTAL COST

1 18 $4,825 $86,860

2 12 $4,048 $48,856

3 71 $1,412 $100,265

4 5 $0 $0

106 $242,319


Support GOT to determine investment plan for LGA with other development partners

Identify LGAs to be supported by PS3 and begin LAN procurement process

4.2 Improving Interoperability and Efficiency of Information Systems

4.2.1 Support PlanRep redesign PlanRep was developed to assist LGAs in planning, budgeting, actual program implementation and financial and non-financial reporting. PlanRep acts as the main information system for development and integration of LGA annual and strategic plans. Within PlanRep, LGA Councils

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are able to define their Medium Term Expenditure Framework (MTEF) in relation to their strategic plans, which include objectives, targets, and activities.

Despite the ongoing improvements in the LGA level planning and budgeting systems, there are still significant challenges. PlanRep is currently being distributed as a standalone tool and each user accesses the system locally on his/her workstation. As a result, users often have different versions of PlanRep, which results in producing data in different formats and inconsistent database structure. These issues interfere with the uploading of budgets into the SBAS, the Ministry of Finance and Planning’s budgeting system. It also impacts the data being uploaded into the Epicor IFMS at PORALG. As a result, LGAs must manually upload their annual budgets into Epicor and the SBAS, a process that takes months and is riddled with human errors.

Due to limitations of the current PlanRep, the MoHCDGEC contracted the University of Dar es Salaam Computing Centre (UCC) to develop PlanRep into a web-based system that supports the health sector to prepare CCHPs. This version of PlanRep still faces operational problems and has not been extended to other sectors, meaning GOT does not have a standard and well-functioning LGA level planning and budgeting system. To address these issues, PORALG requested PS3 support to improve the existing standalone reporting tool and web based PlanRep for health in order to improve efficiency, accountability, consistency, uniformity and quality of LGA planning, budgeting, and reporting. The joint PORALG and PS3 team working together during each step in the long process will redesign, develop and implement an easy-to-use centralized web based planning, budgeting and reporting system, which will integrate with the current Epicor-IFMS, MOFP-SBAS, LGRCIS, HCMIS, DHIS2 systems and other sector systems.

The opportunity for PS3 to support PORALG in this major and critical undertaking has evolved rapidly, been designated a key PS3 intervention, and if successful will result in substantial multi-sector systems strengthening, management improvements, and efficiency gains contributing to service delivery improvement.

In Y2Q1, PORALG (with RS and LGA representation), MoHCDGEC, other key stakeholders, and PS3 embarked on a series of activities that involved dialogue, meetings (decision and technical) and workshops for the purpose of developing detailed plans for PlanRep redesign and actually starting the redesign process. During the last quarter, PlanRep redesign proceeded on two tracks. The first track is the development of the software and platform to produce a web-based system that links core information systems including Epicor, LGRCIS, and HCMIS. The second track consisted of the programmatic aspects of PlanRep and resulted in the decision to extend LGA planning to the service provider level by adding service provider codes and service provider outputs which is a milestone in systems strengthening to improve service delivery. The main accomplishment in Y2Q1 is the development of a GOT PlanRep redesign project charter. The comprehensive charter details the number of phases or stages including project initiation, requirement gathering and analysis, system designing, and system development. It also outlines key roles and responsibilities of stakeholders in the development, testing and roll-out.

PS3 and PORALG convened a variety of stakeholders in Morogoro in October 2016 to define the requirements needed to improve PlanRep. This exercise was conducted for 20 days at

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Morogoro and included a number of different key stakeholders from PORALG (all Departments, Directorates and Units), Ministry of Agriculture, POPSM, and MoHCDGEC. The participants brought a variety of skills and experiences to contribute ranging from planning, information and communication technology, public administration, health secretaries, economics and finance. Requirement gathering and analysis process involved participants from PORALG (and representatives from PS3.

LGAs began by explaining the current practice of developing plans and budgets using the existing version of PlanRep. LGAs identified challenges at each stage of the process which were included in the documentation. Other participants including PORALG, RS, LGAs, programs and other stakeholders also identified additional needs and challenges. Users discussed the challenge of managing plans, budgets and expenditures at service provider level and the inability to link plans, budgets with service outputs. All stakeholders agreed on the incorporation of the service provide codes as a key improvement. LGA representatives also highlighted challenges that they face when preparing quarterly and annual reports. A major issue is the lack of interoperability between PlanRepo and Epicor. It was agreed that PlanRep needs to be interoperable with other systems such as LGRCIS and Epicor. The process of requirement gathering took into account experience from UCC, who are in the process of developing a web-based PlanRep for the MoHCDGEC.

Following the requirements gathering exercise, the design team gathered again in Morogoro with the objective to translate the requirements document into actual design before moving to fully development stage. The system design document tracks all the necessary information required to effectively define the architecture and system design to give the development team guidance on the architecture of the system to be developed. The Design document is incrementally and iteratively produced during the system development life cycle. Its intended audience is the project manager and development team. This exercise resulted in the PlanRep design document which will be used during development sprints.

One of the mmbers of the PlanRep design term during the meeting

in Morogoro

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Finalize formatting and marking and branding of PlanRep documents developed to date, disseminate widely, and promote active involvement in PlanRep redesign by all stakeholders

Joint PORALG and PS3 teams continue to support all aspects of PlanRep redesign consistent with the charter and other documents

4.2.2 Mobile Version of LGRCIS To ensure efficient revenue collection and control revenue leakage, GOT requires the use of a computerized information system called Local Government Revenue Collection Information System (LGRCIS) for the collection of revenues at the LGA level. The system contains a database of all taxpayers for the revenue sources that are classified as permanent sources, as well as functionalities for the sources classified as miscellaneous sources. LGRCIS is operated from the main central server located at PORALG headquarters in Dodoma.

Until recently, revenue collection was largely done through point of sales (POS) machines. On average, each LGA needs at least 100 POS machines to cover all revenue collection points. One POS machine costs an average of 1,300 USD. Most LGAs do not have sufficient financial

resources to buy enough POS to cover all revenue collection points. In order to increase coverage of the revenue collection points, PORALG with support from the World Bank has developed a LGRCIS mobile application for android-based ‘smart phones’ and smart POS machines. Smart phones are less expensive than POS machines, allowing LGAs to cover more revenue collection points through the purchase of smart phones. When connected to a mobile printer, taxpayers can receive real-

time printed receipts and/or demand notes. The LGRCIS mobile app is able to substantially increase revenue

collection in LGAs by increasing both gross revenue by covering more revenue collection points and net revenue by reducing the administrative costs of collecting revenue.

Following dialogue on how best to support, expand, and leverage the PORALG and World Bank collaboration, PORALG and PS3 agreed to work to the comparative advantage of PS3 by collaborating on LGA staff capacity building and training on the use of the LGRCIS mobile app for revenue collection.

Liwale DC ICT Officer, Simon G. Seja, making settings on the

POS after receiving training

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In Y2Q1, these extensive capacity building and training activities were implemented training teams from PORALG and PS3 mentors. A total of 13 teams were formed and dispatched to the regions where all 93 PS3 LGAs were visited and over 900 LGAs staff were trained. An average of 10 LGA staff from Treasurer,

business and license and revenue office including accountants, cashiers, and building engineers were given practical training on the use of the LGRCIS mobile app. In the process, PS3 built relationships with Treasurers in all 93 LGAs which is expected to pay dividends at both LGA and national level including relationships with MOFP.


At national level, provide technical assistance to PORALG to implement and maintain the LGRCIS mobile app. As the current contract between PORALG and DayOne is about to end and the system will be commissioned to PORALG, PS3 will continue to support the GOT to facilitate a smooth transition to ensure sustainability

At LGA level, continue to build capacity and mentor LGRCIS users (web-based and mobile app) to fully implement and institutionalize improved revenue collection

Given the large number of development partners with activities related to revenue collection and LGRCIS mobile app including PFMRP IV technical assistance (e.g. DFID, Danida), GIZ, and USAID-funded ASPIRES project, support GOT to host a development partner collaboration to enhance investment efficiency and coordination

4.2.3 Improve function and use of Epicor One of the underlying challenges to full automation of financial management in LGAs is the inability to obtain a final financial account report using the Epicor system. Currently, Epicor 9 (which is being used by 133 LGAs) is not configured to use the asset management module, hence LGAs have to use other mechanisms to compile the final financial account reports which is the source of errors and an issue in audit reports.

In Y2Q1, PORALG and PS3 facilitated three meetings with SofTech (Epicor Vendor) for dialogue on how to improve Epicor system functionality to ensure the objective of full automation of financial management at LGAs is realized. The underlying issues discussed were service provider codes, chart of accounts, activation/implementation of the asset management module, and linkages with other systems such as PlanRep and LGRCIS. During the quarter, Epicor 10 was released including the asset management module and it will be rolled out in 52

Participants during the LGRCIS training that was held in Morogoro

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new LGAs. In addition, as the Epicor system is flexible and scalable, it can accommodate changes that include service provider codes which will have to be reflected into the current chart of accounts.


Engage in dialogue with GOT on how to optimize the functionality of Epicor 10 including asset management module and linkages with other systems

Support PORALG and LGAs on the implementation of Epicor 10

Continue dialogue with SoftTech and other stakeholders on the inclusion of service provider codes in Epicor

4.2.4 Support improvements for additional IS systems In Y1Q2, PS3 supported the extraction and analysis of RBF data, and initial dialogue to develop mobile apps to allow providers to directly report facility RBF data into the DHIS2 system. Also in Y2Q1, IS component contributed to PS3 and Touch Foundation initial brainstorming on refining the POA IT platform.


PORALG and PS3 engage in dialogue about Local Government Management Database and its relationship to LGA web application systems including LGA website and associated management databases

Continue to support dialogue, design and development of IS system strengthening related to component technical interventions including POA, RBF, and records management

4.2.5 Support Implementation of LGA web application systems In Y2Q1, PS3 supported POPSM, eGA, and PORAG in development of the Government Website Framework (GWF). The GWF is intended to be a standard template from which all RS and LGAs will customize their websites in accordance with their specific needs and then use the RS and LGA website to: 1) serve as a platform to inform citizens, private sector, other GOT stakeholders, and DPs; 2) facilitate development of profiles and data dashboards; and 3) develop and link management databases and other management improvements and efficiency increases.

In Y2Q1, PS3 supported the entire cycle of GWF development which followed an agile methodology approach involving different phases including project initiation (planning), requirement gathering and analysis, design, development, testing and deployment. To date, the following steps have been executed towards GWF with PS3 support: requirement specification, project plan development, GWF database & system design, coding, system testing, GWF architectural document, user & technical manual development and production of the project report.

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In Y1Q2, PS3 facilitated the requirement gathering and analysis stage where three teams with composition from PORALG, eGA and Ministry of Information, Culture, Arts and Sports (MICAS), and PS3 were involved with MICAS serving as an invitee to the entire process. Following completion of the requirement gathering and analysis stage, design and development of the GWF website commenced and was completed on 5th December, 2016 which is a significant PS3 achievement. It can be accessed at the URL link http://egatest.go.tz/gwf.


Obtain approval of GWF or standard LGA website template

Train LGAs on the development of the GWF and initiate work with LGAs to install and use LGA website

Coordinate with governance component and LGAs on uploading of documents to inform citizens, private sector, GOT, and other stakeholders

Support PORALG, RS and LGAs to develop plans for maintenance and management of their websites

http://egatest.go.tz/gwf

5. OPERATIONS RESEARCH

PS3 Y2Q1 progress on OR studies and rapid assessments is described below.

Intergovernmental fiscal transfers

In Y2Q1, PS3 worked to develop an OR study on intergovernmental fiscal transfers (IGFT). The OR study will be anchored within PORALG Directorate of Local Government Finance that expressed interest in having key findings of the OR study published as a PORALG Annual Local Government Fiscal Review. Initial raw data was obtained from PORALG for the last three fiscal years consisting of CFRs for approximately 98% of all LGAs in Tanzania (i.e. 2013/14, 2014/15 and 2015/16). The OR team observed a number of irregularities and a process for data cleaning was agreed with PORALG. Data cleaning is expected to be completed by Y2Q2, to be followed by analysis and report development.

Complaints handling mechanism

In Y2Q1, PS3 initiated a rapid assessment to identify what information was available on the complaints handling mechanism at the LGA level before proceeding with the OR study. The rapid assessment involved visits to three LGAs: Misungwi District Council and Ilemela Municipal Council in Mwanza region and Kigoma Municipal Council in Kigoma region. The sectors covered by the rapid assessment were health and education. In these councils, activities related to Open Government Partnership (OGP) were also being implemented at a more heightened pace. For example, a “Mobile Tool for Monitoring Client Satisfaction on Services” (also called Afya Maoni) was being piloted under the OGP in Misungwi and Ilemela District Councils, while Kigoma Municipal Council had just joined the international OGP initiative, which is being implemented by 15 subnational governments around the world. Transparency through OGP and complaints handling mechanism are mutually reinforcing, hence the selection of these LGAs as good cases from which to learn how both OGP and complaints handling mechanisms were working.

Preliminary lessons learnt from the rapid assessment are as follows:

With the exception of complaints related to land in Misungwi and Ilemela Councils, there is currently no systematic way of handling citizen complaints or using them to stimulate efforts to improve services. Land received special attention because it is generally a perennial problem in LGAs

Complaints are submitted through various means including informal or verbal complaints submitted to government officials at LGA and facility levels, and complaints submitted at various forums including public and committee meetings. Submission of opinions through mobile phones and written exit interviews in health facilities were

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other ways in which complaints were submitted. In general, suggestion boxes were the least used way to submit complaints

At the LGA level, land is the main topic of complaints; at the village level it is mostly about family welfare issues. At the facilities, complaints are related to the quality of services, the delays, and the lack of resources, medicines and infrastructure

Based on these preliminary findings, the rapid assessment will tease out lessons to inform PS3 planned interventions as well as the planned OR study. PS3 will also seek to explore some of the best practices in complaints handling available in Tanzania and compare findings with practices at LGA level. The OR study concept note, which has been developed, is now being refined in the light of the findings of the rapid assessment. The OR study will be initiated in Y2Q2.

Effectiveness of the Facility Governing Committees

PS3 plans to conduct an OR study to inform interventions aimed at strengthening facility-governing committees in health, education and water. Similar to the issues on the functioning of the complaints mechanisms, the poor functioning of the facility governing committees emerged from the LGAs regional launches and was confirmed during the baseline data collection in Phase I LGAs. This OR study will be launched in Y2Q2.

A rapid assessment explored LGA progress in implementing the GOT directive on allocation of 10% of own source revenue to public services focusing on women and youth needs. As a result of the findings, PS3 will continue to engage in dialogue at LGA level about the directive on allocation of own source revenue, and also explore addressing gender equity in public services through advocating for ‘adjusters’ within the framework of the ongoing PS3 interventions on strengthening service payment systems and PlanRep redesign. The OR team also collaborated with the gender team on exploration of gender budgeting processes in Morogoro municipal council as described in the gender section below.

6. CROSS COMPONENT INTERVENTIONS

6.1 Gender Sensitivity and Integration

6.1.1 PS3 internal gender mainstreaming activities PS3 project culture values gender sensitivity and integration. In Y2Q1, all PS3 Abt staff participated in an online sexual harassment course. Since PS3 is implemented through full integration with other consortium members, PS3 will disseminate sexual harassment materials to other PS3 implementing partners in February 2017 during the first quarterly meeting. This is an important element of PS3 internal gender mainstreaming, given that PS3’s credibility in addressing gender inequality relating to systems strengthening and service delivery (external gender mainstreaming) will be enhanced if PS3 leads by example, i.e. addressing gender inequality is also reflected in its workplace policies.

6.1.2 Development and piloting of gender assessment/auditing tool

In Y2Q1, PS3 developed a gender assessment/auditing tool that was piloted in Morogoro District Council. The tool will be used in the 26 Phase I LGAs to determine how the public sector systems support gender integration in the relevant sector policies and service delivery. The aim is to identify how to strengthen the local public systems to deliver gender-sensitive programs; how this is happening/applied in real life-actual programs and projects that operationalize policies; and identify possible improvements together with opportunities to achieve them.

6.1.3 Orientation of RPMs and Mentors on gender issues RPMs and mentors were oriented on the PS3 gender strategy at the Tanga Orientation. PS3 gender strategy includes consistent commitment in incorporating gender in PS3 internal practices and culture; gender assessment on how the public systems support gender integration in service delivery; raising awareness on gender issues in service delivery and adapting the activities based on a gender analysis; collaboration with other development partners and civil society organizations; and fostering gender-sensitive systems, processes and monitoring, including collection and analysis of gender-disaggregated data.

6.1.4 Engagement on gender sensitive dialogues Meetings were held with special seat councilors in Mwanza and Mara regions during the LGA councilor training. Special seat councilors raised concerns about their exclusion in playing the role of acting chairperson in the Ward Development Committees (WDC) in the absence of the

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chairperson. Special seat councilors observed that they are prohibited from presiding over meetings in the WDC because the law does not treat them as equally as the elected councilors. The current practice is that even when the ward councilor is absent, the special seat councilors – if present – cannot preside in the WDC because the law does not allow it. Section 31 sub section 2 provides that the councilor representing the ward shall be the chairman or in his/her absence members shall elect a presiding chairman from amongst the village chairmen.

In addition, there are sometimes clashes between special seat councilors and elected councilors. Perhaps this is due to lack of clarity on the roles assigned to special seat councilors. PS3 is addressing this gap during the ongoing LGA councilor trainings by clarifying the roles and disseminating the legal provisions regarding the positions of special seat councilors. If councilors reflect and represent views and needs of local citizens, then PS3 will support special seat councilors to present the view and needs of women as a special group in the LGAs. PS3 will conduct a rapid assessment to explore the issues on council interpretation of the limits, rights and obligations of special seat councilors.

6.1.5 Development of gender specific finance indicators Lessons drawn from international experience suggest that gender equity in public expenditure can be furthered or achieved by making national planning and payment systems more result-oriented or by better matching payment to priority services especially when policies, priority services and benefits are relatively gender sensitive as they are in Tanzania. In other words, supporting GOT to strengthen systems to improve service delivery is inherently gender sensitive. A PS3 assumption is that LGA use of the redesigned PlanRep containing service provider codes and service outputs provides a great opportunity to make GOT budgets more sensitive to public service needs of the poor and special groups including women and youth. Shifting to output-based payment and adding adjusters to the payment systems will allow GOT to fund service outputs that are specific to women and other special groups. Next quarter activities will include initiate dialogue and/or conduct a rapid assessment within the Tanzania gender responsive budget stakeholders to define service outputs that are particularly important for addressing needs of special groups, specifically women and youth.

6.2 Public-Private Sector Dialogue

PS3 supports systems strengthening across public sectors. In Year 1, PS3 engaged in dialogue with GOT and development partners on the best way to contribute to improving public sector support to the agriculture sector – a key program area identified by USAID and GOT in PS3 regional launches and other policy dialogue forums.

In Y2Q1, GOT requested USAID implementing partners to support the implementation of the country’s Agricultural Sector Development Program (ASDP-2). ASDP-2 is the main policy and program for transforming the agricultural sector into a modern, commercial and competitive sector. The main objective is to create an enabling and favorable environment for improving productivity and profitability of the agricultural sector and increase farm incomes, thus reducing Tanzania’s wide-spread poverty and enhancing household food security. In this

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regard, ASDP-2 envisages forging collaboration with the private sector and agribusinesses during implementation, while making substantial policy and institutional reforms to ensure sustainable use of land resources, water for irrigation and supportive transportation and marketing infrastructure.

In response to the GOT request, four USAID implementing partners: Africa Lead, ASPIRES, ENGINE and PS3 met several times to discuss the vision and nature of a collaboration to support dissemination and implementation of ASDP-2, roles of each partner as well as financial and operating modalities that would take into account each partner’s comparative advantages and mandate. During these meetings, a strategy emerged to use ASDP-2 as a vehicle to support and leverage both program implementation and improving public-private sector dialogue in the agriculture sector. Africa Lead and ASPIRES would take the lead on agriculture content also supported by PS3 expertise, and ENGINE and PS3 would take the lead in strengthening and improving public-private dialogue which creates an effective mechanism for ENGINE and PS3 collaboration.

In Y2Q1, the four USAID implementing partners met with USAID and agreed on the basic principles of this collaboration. Led by Africa Lead and ASPIRES, the USAID implementing partner collaboration began engaging in dialogue with GOT including Ministry of Agriculture, Livestock, and Fisheries, and PORALG on the exact modalities and specific activities of the collaboration to support implementation of ASDP-2 and strengthen public-private sector dialogue. The dialogue is ongoing with GOT suggesting large national or zonal ASDP-2 dissemination workshops and the four USAID implementing partners suggesting phased regional workshops starting with high priority agriculture regions where all USAID partners are working (Dodoma, Iringa, Mbeya, and Morogoro). In addition, PS3 plans to support future LGA level activities including strengthening systems to make public sector agriculture service providers and service outputs more visible in GOT systems, and strengthening committees at district, ward and village levels to advance good governance as well as facilitate public-private sector dialogue and collaboration in ASDP-2 implementation.

7. COMMUNICATIONS AND KNOWLEDGE MANAGEMENT

7.1 Contractually required reporting

In Y2Q1, PS3 submitted its required documentation as outlined in the contract to report activities, successes and challenges to USAID. These contractual deliverables included:

Year 1/Y1Q4 Annual Report

Events Calendar

Councilors Training Success Story

In addition, PS3 worked with the USAID/Tanzania communications team to develop standardized templates and forms for future reporting as well as technical reports. This included revising the PS3 Branding and Marking plan to include an allowance for co-branding with the Government of Tanzania. Additionally, PS3 developed a set of standard templates for the following contractual requirements: Quarterly and Annual Reports, Success Stories, Newsletter, and Events Calendar. The Year 1 Annual Report was uploaded to the Development Exchange Clearinghouse (DEC) per the contractual requirement.

7.2 Outreach and communications capacity building

In Y2Q1, PS3 developed and led a series of trainings for the PS3 staff during PS3 Orientation for Mentors held in November 2016. As PS3 grows and expands into the region, it will be critical that the regional teams are equipped with the right tools, template and resources to effectively do their jobs. The Communications orientation and training included: communication protocols with the government and stakeholders, branding and marking requirements, required reporting and templates, as well as general information on the difference between a success story and a report, and the basics of photography, including focus and lightning. In Y2Q2, PS3 will begin working with the regional teams to build their capacity in developing LGA communication plans as well as working with regional teams to document and share the successes of the work at the regional level.

In addition, PS3 also finalized the templates and names for a variety of other products including policy briefs, technical reports, participation certificates as well as PowerPoint presentations. Having standardized templates helps PS3 standardize the quality and appearance of all project related materials.

Next Quarter Activities:

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Engage in dialogue with the Ministry of Information on the possibility of having a standardized communication plan/strategy for all regions and LGAs

Conduct a communications needs assessment to PS3 regions/LGAs

Together with the IS component, engage with eGA on a TOT for uploading content to the newly established LGA websites

Produce a project newsletter for external sharing

7.3 Internal knowledge management and documentation

Following the agreement with USAID/Tanzania in Year 1, PS3 will not develop an external facing website. However, PS3 continues to prioritize the sharing of information amongst the project team, particularly as the work at the regional level expands. In Y2Q1, PS3 built an internal facing platform called ‘Jamvi’ which is the Kiswahili word for mat. Jamvi includes a variety of features accessible to regional teams, subcontractors as well as Dar and US based staff: a dynamic events calendar, working files and folders for teams, as well as a technical reference library. Jamvi will be released for all PS3 staff in February 2017, following a series of beta and user tests.

8. MONITORING AND EVALUATION

Following USAID approval of the M&E plan in June 2016, PS3 strategy and technical interventions significantly evolved and solidified largely due to dialogue and agreements with GOT (e.g. PlanRep redesign, IT infrastructure including LAN). In Y2Q1, PS3 revised M&E plan indicators to be consistent with Year 2 workplan and reflect further development and agreement with GOT on PS3 technical interventions. While PS3 will continuously adapt over the life of the project and will not need to revise the M&E plan for every small program change or realignment, the evolution over the last few months has been substantial and requires recalibration or harmonization of M&E plan indicators.

In Y2Q1, Performance Indicator Reference Sheets (PIRS) were also revised based on lessons learned from the baseline data collection exercise in PS3 Phase I LGAs. For example, during Y2Q1, a data quality assurance procedure was performed for finance indicators. It required regional staff to verify data with bank accounts of individual LGAs. During the exercise it was determined that if performed for all LGAs, the data quality assurance method might not be cost effective. Hence the M&E plan revision also encompasses practical adjustments to the PIRS. Corresponding M&E systems and processes are also being updated based on experience from Phase I LGA baseline data collection and regional/LGA operations start-up. Revised results framework indicator worksheet and PIRS were submitted to USAID in Y2Q1 and revised M&E plan narrative will be submitted in Y2Q2.

8.1.1 Baseline data collection and analysis PS3 completed the Phase I LGA baseline data analysis in Y2Q1 and submitted the report to USAID in October 2016. The data collection for 26 Phase I LGAs was completed in Year 1, a complex exercise that engaged all PS3 staff, LGA focal persons and PORALG.

The baseline data collection and analysis process also shed light onto some of the systems issues at the LGA level, and findings from this exercise have been used to further inform PS3 interventions.

Not all LGAs are using Epicor as the main source of finance data. Where in use, data was incomplete when compared with the data from the Council Finance Report (CFR).

While there is a significant amount of aggregate data related to service providers, individual service provider level data is not disaggregated. PS3’s intervention to support inclusion of service provider codes in Epicor is a move in the right direction, as it will facilitate availability of individual service provider level data at LGA level.

Accessing HR data from the Lawson system proved to be a challenge. Due to privacy issues, only authorized LGA staff have access to this data and PS3 is reliant on their ability to extract the required information. However, a number of District Human

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Resource Officer (DHRO’s) could not access Lawson either due to lack of capacity to interact with the system and/or lack of internet connectivity. Baseline data collection for indicators that relied on DHRO’s access to Lawson is delayed and will need to be revised to resolve issues of access to Lawson system. Related dialogue revealed there may be growing interest in GOT to extend Lawson system to service provider level consistent with PlanRep redesign and service provider codes in Epicor.

The involvement of the Regional level in the baseline data collection process facilitated data collection, particularly in tracking timeliness of the report submitted to them by the LGAs.

A significant number (71%) of Phase I LGAs received their approved budgets from the national level. However, most fund transfers were delayed. The OR study on Intergovernmental Fiscal Transfers will shed light on the issues related to delays in transfer of approved budgets, as well as highlight factors leading to variance between approved budgets and actual disbursements.

Some indicators e.g., functioning of LGA committees declined. For example, 84% of Phase I LGAs, having functioning committees during the baseline year to only 69% LGAs in Year 1. This decline might be attributable to Year 1 being an election year.

While PS3’s focus was on formal complaints mechanism, a finding of interest was that LGAs embrace a complex system of both formal and informal mechanisms for receiving complaints. Nevertheless, complaints channeled through both formal and informal mechanisms are required to be recorded in complaint registry and responded to by responsible officers in the LGAs. While fewer than 36% of Phase I LGAs had a functioning complaint mechanism in the baseline year, the number with a functioning complaint mechanism had risen to 53.9% in Year 1. PS3 OR study on complaint handling mechanism as well as follow up by governance mentors will shed more light on the reasons for this variation, as well as investigate further the state of affairs for complaints mechanisms in Phase I LGAs.

Baseline data established that while many LGAs submitted complete reports to higher levels of government, timeliness of the submissions emerged as a challenge.

8.1.2 Ongoing M&E plan indicator data collection, analysis, and reporting

In Y2Q2, PS3 began developing LGA and regional level indicator analysis using data from the Phase I LGAs baseline data collection exercise. The data analyses includes data visualization which will be helpful for mentors and team leads to further investigate and/or refine interventions. These analyses will be distributed to the RPMs and mentors during the first quarterly meeting scheduled for Y2Q2. Results from the baseline were also used to inform the development of OR studies (e.g. complaint mechanisms, intergovernmental fiscal transfers), rapid assessments, and technical intervention design.

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8.1.3 Other internal M&E activities In Y2Q1, PS3 further developed internal monitoring systems and strengthened linkages between M&E team and technical components, communications and finance and administration teams. PS3 designed and began programming a combined capacity building/training and participant per diem database that will increase PS3 efficiency by linking programmatic tracking of capacity building including training, and finance and administration team management of participant per diems. As discussed in the Communications section above, PS3 will use an internal website or platform called Jamvi for project knowledge management. In Y2Q1, the M&E team contributed to design of the internal working and reference elements of Jamvi and will work to its comparative advantages to manage this PS3 technical information sharing function in the future.

9. PROJECT MANAGEMENT

In Y2Q1, the PS3 project management focus was on start-up of regional/LGA operations. The sections below describe finalizing regional program manager (RPM) and mentor staff hiring and organization, RPM and mentor orientation, RPM and mentor deployment, and establishment of regional offices.

9.1 RPM and Mentor Hiring and Organization

In Year 1, PS3 began the process of recruiting, selecting, and hiring RPMs and the remaining mentor positions. PS3 received over 2,700 applications for 31 posted positions and the extensive level of effort required to create a short list of candidates, interview candidates, and select RPMs and mentors was largely completed in Year 1. In Y2Q1, Abt Associates, BMF, and TMA as the PS3 partners employing regional/LGA level staff negotiated with selected candidates and completed the hiring process. The vast majority of candidates accepted offers and the few who did not were replaced by the next candidate from the ordered list created based on the interview process.

PS3 substantially invested in regional/LGA operations strategy in Year 1 and this work continued and was largely finalized in Y2Q1. After the strategy shift from zonal offices to small regional offices, one RPM will be based in each regional office. Optimal staffing would be governance, HR, finance and IS mentor in each region to cover all LGAs in the region meaning a total of 52 mentors. As this is not possible due to both level of effort and budget constraints, PS3’s 32 mentors will on average cover two regions. In addition, mentors will be combined into mentor clusters to ensure comprehensive systems strengthening and service delivery improvement through coordination and integration of governance, HR, finance and IS interventions. In Y2Q1, further developed regional/LGA operations and RPM and mentor organizational structure including the following operational principles:

Mentor clusters consisting of governance, HR, finance and IS mentors will operate across 2-3 regions (individuals will sometimes work beyond these regions if they have specialized technical expertise required to support other LGAs or national activities)

One mentor cluster will operate with two or three RPMs, and they will form one RPM and mentor management unit

The RPM and mentor management unit will meet once a month to plan next month’s activities in detail, write the monthly report, and perform other program management tasks as necessary

The RPM and mentor management unit will share resources, monthly operation plans and develop a common action calendar

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RPM and mentor management unit and cluster members will complement each other and not compete among themselves

In Y2Q1, PS3 finalized determination of geographic pairing of regions to establish RPM and mentor management units including mentor clusters. Establishing geographic areas and specific mentor locations was not an easy task as it is complicated by factors such as geographic barriers, roads and transportation systems, a balance of regional and LGA level mentor postings, and attempting to assign staff to their preferred geographic locations. The six geographic RPM and mentor management units including mentor clusters shown in the map below are: East Southern Highlands area (Iringa and Njombe), West Southern Highlands area (Mbeya and Rukwa), Central area (Dodoma and Morogoro), Southern area (Mtwara and Lindi), Western area (Kigoma and Kagera), and Eastern Lake (Mwanza, Shinyanga and Mara).

9.2 RPM and Mentor Orientation

An offsite orientation that featured a blend of management, technical and operational sessions was held for all PS3 staff from November 7-12, 2016. The intense week was carefully designed to align all PS3 staff with the overall vision and goals of the project, implementation strategies, culture and family of the project, in addition to in depth technical sessions on each component. Led by the Chief of Party and component leads, the week-long orientation also built strong collegial relationships and fostered a sense of shared commitments and purpose, which will be critical as teams disperse to the regions and tackle the significant work that awaits them. Over

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There were 99 participants which included all PS3 staff from Dar es Salaam office, as well as representatives from local partner organizations BMF, University of Dar es Salaam (UDSM), TMA and Local Government Training Institute (LGTI).

Following the offsite orientation, RPMs and mentors convened for one week at the PS3 office in Dar es Salaam to deep dive into their individual responsibilities and technical areas as well as plan for the logistics of their deployment.

9.3 RPM and Mentor Deployment

In Y2Q1, six deployment teams organized by geographic RPM and mentor management unit traveled to all PS3 regions and selected LGAs to deploy RPMs and mentors. The teams visited the Regional Secretariats of the 13 PS3 regions, and the two Phase I LGAs in each region. Each deployment team was comprised of at least ten people, and received a very warm welcome in all regions and LGAs. PS3 invested in preparation, especially the involvement of the regional and LGA focal persons, who informed the Regional Administrative Secretaries (RASs) as well as District Executive Directors (DEDs) of the visit, prior to the arrival of the teams. In general, the deployment exercise was very successful, and further reinforced that it is critical to continuously maintain and nurture relationships between PS3 and regional and LGA staff.

After the deployment, PS3 teams debriefed to identify lessons learned including the following:

The regional launchers were critical to set the stage for the regional deployment. Regions were prepared and ready to welcome the deployment teams, RPMs and mentors.

Engaging the focal persons has been central to the success and buy-in of PS3 activities. Regional focal persons have played a key role in orienting GOT at the regional level. However, some Council officials do not know the PS3 LGA focal persons, so it is important that they share PS3 activities at their LGA council meetings.

Every region has allocated office space for the PS3 team. This shows the commitment of regions and councils to work with PS3.

Some concern was expressed by officials at the regional level that PS3 teams, especially mentors, are there to take over their jobs. PS3 concluded it will be necessary to

PS3 staff in group discussions during the orientation that was held in

Tanga

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continuously reinforce by words and actions that project staff will not substitute but rather support and complement the government by investing in systems strengthening.

The Iringa and Njombe deployment team benefited from the participation of USAID, specifically Joan Mayer who coordinates all USAID-funded projects in Iringa and Njombe. Ms. Mayer participated fully in all the meetings, from

the first one held at the Iringa Region office, to the last meeting held at the Wanging’ombe District Council. One of the messages she kept stressing to members of the Regional Secretariat and Council Management Team was that PS3 RPMs and mentors were not there to replace government staff, rather to complement them by investing in sustainable public sector systems strengthening improving service delivery for the benefit of the citizens of Tanzania.

9.4 Establishment of Regional Offices

RPM and mentor deployment also provided the opportunity to further discuss and confirm GOT commitment to provide PS3 with office space. Regions have allocated office space for the PS3 staff who will be based there, and two Phase I LGAs have provided offices for the mentors who based there. During deployment visits, the teams saw the allocated offices, and also discussed arrangements to make the offices functional. During Y2Q1, the process of procuring necessary furniture and equipment for regional offices continued.

Members of the Eastern-South Highlands Cluster team during the

deployment activity. From left: Joel Shimba (Governance), Jackson

Mengele (HR), Hellen Nyagwa (Finance), Anthony Kilale (RPM), and

Susan Muro (IS)

10. CHALLENGES

10.1 MOHCDGEC Support for POA

In early November 2016, MoHCDGEC and PS3 met to review progress and continue to plan joint activities using POA to improve HR allocation, distribution and redistribution. MOHCDGEC HR Department head was supportive but the HR specialists/WISN trainers expressed some concerns. For example, there was a lack of understanding about the difference between WISN and POA statistics; lack of clarity about the POA algorithm or how staff allocation is prioritized; and not wanting to change the current WISN process. In addition, in a parallel meeting POPSM reinforced the importance of MOHCDGEC involvement and the need to extend POA across sectors. PS3 decided on two strategies to try to increase MOH ownership: perform the WISN plus POA analysis jointly with MOH, and portray specifics of the POA algorithm as well as consider joint improvement of POA IT platform to be more user friendly and institutionalized.

10.2 Communication with POPSM

A meeting between Minister of POPSM and USAID Mission Director raised some issues about the role of PS3 and activities PS3 is implementing to support POPSM. In Y2Q1, a meeting was held with USAID, PS3 and POPSM Deputy Permanent Secretary and department heads. USAID provided POPSM with background on the project, PS3 presented current and expected activities supporting POPSM, discussion was productive, and agreement reached on blocks of interventions that PS3 would support POPSM to design, develop, and implement. Collaboration with POPSM is essential to the success of PS3, the meeting was positive and addressed the issues, plans and process were developed, and PS3 will follow-up with POPSM on the intervention blocks.

10.3 Program Management and Systems

In Y2Q1, RPMs and mentors joined PS3, essentially doubling the number of PS3 staff. This large increase in staff coupled with start-up of regional/LGA operations including the management complexities of work in 13 regions and 93 LGAs, and explosive growth of technical interventions and program implementation, puts pressure on PS3 management and systems. In response, PS3 has identified the need and began development of strengthened internal program management systems. Program management and systems improvements in process include solidifying financial management systems in general and processes for component leaders and RPMs to submit budget requests in particular, internal website Jamvi to improve knowledge management, combined

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training and participant per diem database, improving communication mechanisms, and solidifying organizational and team relationships. All program management and system improvements are intended to increase efficiency in program implementation and enable the financial and administrative team to support technical activities while ensuring compliance with USAID, Abt, project policies and procedures.

PUBLIC SECTOR SYSTEMS STRENGTHENING

(PS3) IN TANZANIA

Documents

PUBLIC SECTOR SYSTEMS STRENGTHENING (PS3) IN TANZANIA