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1
THE UNITED REPUBLIC OF TANZANIA
MINISTRY OF FINANCE
PUBLIC FINANCIAL MANAGEMENT REFORM PROGRAMME
(PFMRP PHASE IV)
MID – YEAR PROGRESS REPORT FOR FY 2013/14
(PERIOD: JULY – DECEMBER 2013)
CONTACT:
Permanent Secretary
Ministry of Finance
P.O. Box 9111
Dar es Salaam
June, 2014
2
TABLE OF CONTENTS
LIST OF ABBREVIATIONS ................................................................................................................................ 3
Executive Summary................................................................................................................................................ 5
Chapter 1.0 BACKGROUND AND INTRODUCTION........................................................................................ 7
Chapter 2.0 PROGRESS ON IMPLEMENTATION OF PLANNED ACTIVITIES .......................................... 11
Chapter 3.0 BUDGET EXECUTION .................................................................................................................. 25
Chapter 4.0 CHALLENGES AND RECOMMENDATIONS FOR NEXT PERIOD ...................................... 31
Annexes:
a) Annex 1: Detailed assessment of milestone status as at Dec 2013 based on M&E Framework for
2012 – 2017..................................................................................... 32
b) Annex 2: Fund use by milestone for the mid-year 2013/2014 ................................... 62
c) Annex 3: Procurement progress report for the mid-year 2013/2014.......................... 101
3
LIST OF ABBREVIATIONS
AG Attorney General
CAG Controller and Auditor General
FY Financial Year
ICT Information & Communication Technology
IPSAs International Public Sector Accounting Standards
LAAC Local Authority Accounts Committee
LGAs Local Government Authorities
JSC Joint Steering Committee
KRA Key Result Area
MDAs Ministries, Departments and Agencies
M&E Monitoring and Evaluation
MIS Management Information System
MKUKUTA Mkakati wa Kukuza Uchumi na Kupunguza Umaskini Tanzania
MoF Ministry of Finance
MTEF Medium Term Expenditure Framework
PAC Public Accounts Committee
PEFA Public Expenditure Framework for Assessment
PFMRP Public Financial Management Reform Programme
PMU Procurement Management Unit
PMIS Procurement Management Information System
PMORALG Prime Minister’s Office Regional Administration and Local Government
PO-PC President’s Office – Planning Commission
PO- PSM President’s Office – Public Service Management
RSs Regional Secretariat’s
SMTB Secretary for Ministerial Tender Board
TRA Tanzania Revenue Authority
TRMIS Treasury Registrar Management Information System
TWG Technical Working Group
4
EXECUTIVE SUMMARY
This report covers the period of first half of the FY 2013/14 in the second year of PFMRP Phase IV
implementation which was launched in June 2012. PFMRP Phase IV complements efforts to realize
national policy objectives stated in Tanzania Development Vision 2025, Five Year Development Plan
(FYDP) 2011/12-2015/16 and MKUKUTA/MKUZA II by ensuring achievement of the following:
(i) Economic growth and poverty reduction achieved through policy-based budget management and
resource mobilization and allocation, improved fiscal discipline and sustainable budget
balance;
(ii) Service delivery improvement through the introduction of result-based management, program
based budgets, accountability and performance audits;
(iii) Good governance through improved transparency, accountability and efficient controls.
PFMRP IV is designed to be an enabler towards enhancing revenue mobilization; improving planning
and budgeting; ensuring transparency, accountability, efficiency and effectiveness in the use of
resources and implementation will be through five Key Results Areas which are: Revenue management;
Budget and Planning; Budget execution, Transparency and Accountability; Budget Control and
Oversight; and Change management, Program Monitoring and Communication. Table 1.1 gives a
summary of the KRA overview.
The approved budget for FY 2013/14 is Tshs. 46,398,324,415 out of which Tshs. 2,730,783,800 are
Project funds, Tshs. 22,557,295,000 local Government contribution and Tshs.21, 110,245,615 Basket
Funds. As at Dec 2013, a total of Tshs.14,073,082,040 was released out of which Tshs. 3,000,415,000
from GoT; Tshs.961,301,040 from Project fund and Tshs. 10,111,366,000 from Basket Fund. Actual
expenditure and commitment as at 31st December, 2013 amounted to Tshs. 15,124,212,175 being 107%
of the fund released1. Expenditure by source was GoT Tshs. 9,591,295,774 equivalent to 68% of the
released funds; Project Tshs. 509,910,857 being 3.6% of the released funds and Basket Fund Tshs.
5,023,005,545 being 36% of the released funds.
1 Expenditure and Commitment include commitment of GoT for construction NAO Headquarters in Dodoma three years ago
and the full amount is yet to be released.
5
On the part of procurement, on 31st December, 2013 total procurement amounted to Tshs.
19,378,000,000 equivalent to 73% of the total planned procurements, all at different stages of
procurement process. Postponed procurement activities amounted to Tshs. 1,175,000,000 which
includes Tshs. 950,000,000 and Tshs. 225,000,000 which were planned to be used to procure
communication network equipment and software for integration of systems respectively. NAO is
implementing construction works for regional offices in Dodoma, Rukwa; Mara and Iringa the total
budgeted amount was Tshs. 13,650,000,000. Activities estimated to costs Tshs. 6,031,080,000
representing 25% of the total estimated had not been initiated. Most of them will be procured in the
second half of the financial year. Detailed procurement progress report is displayed under Annex 3.
The programme recorded fairly satisfactory progress whereby 28 milestones (out of 153) were
achieved while 101 milestones were on track and 24 milestones (16%) recorded no progress. Key
achievements during the period include submission of draft bills (VAT and Tax Administration) to
Cabinet secretariat; draft of national procurement policy draft; installation of asset management
software; capacity building for internal audit as well as external audit functions (NAOT); modification
of server room at MOF to prepare for ICT integration and finalization of action plan for streamlining
and rationalizing the national processes and systems for intergovernmental transfers to LGAs.
Though it is not a milestone under PFMRPIV M&E framework, one of the most notable achievements
of the period was the undertaking and finalization of PEFA covering Central Government. The report
revealed steady improvement in PFM systems since the 2010 PEFA assessment with a significant
influence from PFMRP implementation. Out of 31 PIs, 12 ratings improved, 5 are in process of
improving, 9 PIs have not changed and 2 have fallen. Weaknesses revealed in the PEFA exercise
resulted into fine-tuning of the PFMRPIV M&E framework which was one of the key objectives of the
Sept 2013 Joint Supervision Mission. New milestones were identified; others were merged while others
were improved to make them more “SMART”.
Report Layout
This report comprises of four chapters: Chapter one provides background information and introduction; Chapter
two covers progress on implementation of the planned activities for six months (July–December) 2013; Chapter
three reports the budget execution and Chapter four highlights on challenges and recommendations for next
period of implementation. Annex 1 give detailed assessment of milestone status as at the end of December, 2013
based on M&E Framework for 2012 – 2017; annex 2 gives a detailed of financial status per component as of
December 2013 and 3: Procurement Progress report for the period ended December, 2013.
6
CHAPTER ONE
INTRODUCTION
1.0 Introduction
PFMRP Phase IV which was launched in June 2012 complements efforts to achieve national policy
objectives stated in Tanzania Development Vision 2025, Five Year Development Plan (FYDP) 2011/12-
2015/16 and MKUKUTA/MKUZA II by ensuring achievement of the following:
(i) Economic growth and poverty reduction achieved through policy-based budget
management and resource mobilization and allocation, improved fiscal discipline and
sustainable budget balance;
(ii) Service delivery improvement through the introduction of result-based management,
program based budgets, accountability and performance audits;
(iii) Good governance through improved transparency, accountability and efficient controls.
PFMRP IV is designed to be an enabler towards enhancing revenue mobilization, improving planning
and budgeting; ensuring transparency; accountability; efficiency and effectiveness in the use of
resources and implementation will be through five Key Results Areas which are: Revenue management;
Budget and Planning; Budget execution, Transparency and Accountability; Budget Control and
Oversight; and Change management, Program Monitoring and Communication. Table 1.1 gives a
summary of KRA overview.
The Public Financial Management Reform Program is implemented in line with the on-going reforms in
the Public Sector which aim at improved performance, efficiency and effectiveness in service delivery
for sustainable economic growth. In doing so, PFMRP IV will address interventions which will be:
i. Comprehensive to include the various key reform activities in the PFM systems as well as the
cross-cutting issues related to capacity building, improving infrastructure for service delivery,
and reviewing the institutional policy and regulatory frameworks;
ii. Captured in a well defined Monitoring and Evaluation framework, sequenced to manage
priorities and ensure a more accurate cash forecasting and achievement of results;
iii. Linked and inter-dependent with clear demarcation of responsibilities and accountability;
7
iv. Better standardized and automated systems to ensure attainment of desired results in financial
recording and reporting;
v. Well managed, with effective institutional arrangement to support implementation of the
programme;
vi. Focused, aiming at supporting agencies and initiatives which are likely to have a great cross
cutting impact on the PFM system.
Table 1.1 KRA and components overview
Key Result Area (KRA) Major Component,
Department and KRA-
TWG
KRA 1: Revenue Management
Leader: CPAD
Focus: improving revenue forecasting and resources mobilization and
reviewing & streamlining existing revenue policies, laws and regulations.
The intervention aims at developing appropriate model for revenue
forecasting to improve cash flow forecasting to spending units. Also the
KRA will continue to improve external resource management, review
retention schemes and enhance capacity for managing public investments.
1. CPAD – MoF
2. TR - MoF
3. PMO-RALG
4. External Finance -
MoF
5. MDAs
KRA 2:Planning and Budgeting
Leader: BC
Focus: improving macro-fiscal policy, planning, MTEF credibility,
enhancing budget classification by adopting GFS 2001 and CoFoG
standards, facilitate program based budgeting, broadening the scope of the
chart of accounts, enhancing monitoring, reporting and accountability and
review of the Medium Term Strategic Planning & Budgeting Manual
(MTSPBM) to enable the national development planning and budgeting
system to articulate national policy priority targets with the desired
institutional results.
1. CB – MoF
2. CPAD – MoF
3. PMO-RALG
8
KRA 3: Budget Execution, Transparency and Accountability
Leader: ACCGEN
Focus: achieving greater predictability of resources to spending units;
strengthening capacity on procurement, cash and debt management; and
improving the scope and quality of financial recording and reporting
1. PPRA
2. PPPD
3. ACCGEN - MoF
4. CPAD - MoF
5. DGAM - MoF
KRA 4: Budget Control and Oversight
Leader: IAG
Focus: strengthening capacity on audit functions (internal and external) as
well as oversight function of the Parliament. The interventions involves
providing technical guidance and capacity building to MDAs and LGAs in
the areas of internal audit and to facilitate timely independent external
examination of financial and performance auditing and report to the public
1. IAG - MoF
2. NAO (and
Parliament PACs)
3. TR
KRA 5:Change Management Programme Monitoring and
Communication
Leader: DPD
Focus: cross cutting issues including capacity building on change
management, Monitoring and Evaluation, stakeholders’ communication,
coordination and leadership for efficient and effective programme
implementation.
1. DFMIS - MoF
2. GCU - MoF
3. DPD – MoF
4. PMO – RALG
5. ACGEN - MoF
6. DAHRM - MoF
7. Zanzibar
9
CHAPTER TWO
PROGRESS ON IMPLEMENTATION OF PLANNED ACTIVITIES
There is notable progress with regard to some milestones, but the report also highlights some delays in
implementation in other milestones and reveals that other milestones remain at risk for implementation
if remedial action is not taken.
2.1 Highlights on Targets/Outputs and Implementation Status of Milestones as per M&E
Framework
The number of assessed milestones has been reduced because some milestones have been merged, a few
new milestones have been created, the implementation of which will commence during FY 2014/15. The
number of milestones has been reduced from 167 to 153. Thus, the review was done on the 153
milestones budgeted for implementation in FY 2013/14 showed that, 28 milestones (18%) had been
achieved. However, 101 milestones (66%) recorded a satisfactory implementation progress (on track)
while 9 milestones (6%) are pending, 13 milestones (9%) delayed in implementation and 2 (1%) are at
risk. Pending and delayed milestones were dependent on the accomplishment of other milestones. For
milestones reliant on diagnostic work/studies, the formulations of action plans for the implementation of
the recommendations are an example for delayed progress. Status of implementation of milestones per
KRA as at 31st December, 2013 is displayed in Table 1 below and the detailed information on each
milestone is outlined in Annex 1. Progress toward achieving the output under each KRA is presented in
the next part.
Table 1: Cumulative Milestone Status for FY 2013/14
KRA Achieved On Track Pending Delayed At Risk Total
KRA 1 - 17 1 - 1 19
KRA 2 2 8 5 3 - 18
KRA 3 9 30 - - 1 40
KRA 4 8 25 2 2 - 37
KRA 5 9 21 1 8 - 39
TOTAL 28 101 9 13 2 153
Percentage 18 66 6 9 1 100
10
KRA 1 Revenue Management:
Objective: Strengthened systems, processes and procedures for improving the operational capability of
the revenue collection by June 2016.
Output 1.2: The Government improves efficiency in domestic revenue mobilization both at the policy
and the administration levels by updating legal instruments towards international best practices.
Achievements include:
i. A draft of Tax Administration Bill has been submitted to the cabinet for approval. It is expected
that Cabinet approval and Attorney General Verification will be done in time for the draft Act to
be submitted to parliament.
ii. The first draft of new TR Bill has been submitted to Cabinet Secretariat for an initial review.
Implementation Status of Milestones as Per M&E Result Framework
The implementation status on the 19 milestones was fairly satisfactory of which 17 (89.4%) were on
track with 1 pending and 1 at risk.
Figure 1 below depicts schematic presentation of KRA 1 status as at June, 2013.
89.40%
5.30% 5.30%
Fig 1: KRA 1 Milestone Status
Achieved
On Track
Pending
Delayed
At Risk
A milestone assessed to be at risk is the Bill for an act to amend the Local Government Finances Act No.
9 of 1982 (Milestone 1.3.7). The delayed milestones are 1.1.1 and 1.1.2 which were merged to form a
new milestone on undertaking a study to identify ways of improving tax revenue forecast and action
plan by June 2014.
11
The table below highlights the mid-year expenditure in KRA 1.
Component Name
Sources
of
Fund
Approved Budget Fund Released Total Commitment
and Expenditure
% of
expenditure
against fund
released
% of
expenditure
against budget
1 2 3 4 7 9 10
POLICY
ANALYSIS DEPARTMENT
GoT 100,000,000 53,700,000 52,700,000 98% 53%
BF 228,000,000 86,000,000 86,000,000 100% 38%
Project 56,597,600 - - 0%
TOTAL FOR
COMPONENT
384,597,600 139,700,000 138,700,000 99% 36%
MINISTRY OF NATURAL
RESOURCES
AND TOURISM
BF
162,250,000 90,000,000 28,027,000
31% 17%
TOTAL FOR
COMPONENT
162,250,000 90,000,000 28,027,000 31% 17%
EXTERNAL
FINANCE
GoT 100,000,000 - - 0%
BF 379,060,000 162,060,000 158,658,980 98% 42%
Project 25,000,000 0%
TOTAL FOR
COMPONENT
504,060,000 162,060,000 158,658,980 98% 31%
PMO-RALG GoT - - -
BF 600,930,000 435,430,000 77,652,500 18% 13%
TOTAL FOR
COMPONENT
600,930,000 435,430,000 77,652,500 18% 13%
TOTAL KRA 1 1,651,837,600 827,190,000 403,038,480 49% 24%
KRA 2 Budgeting and planning
Objective: Strengthened capacity of planning and budget management, including results and program
based budgeting, within MoF, MDAs and LGAs by June 2016.
Output 2.1: Strengthened capacity of MDAs, RSs and LGAs in implementing program based
budgeting by June 2016. Achievements include:
i. The Chart of accounts has been modified to accommodate Program Based Budgeting (PBB) and
the .
ii. Training for MDAs will be done after third quarter with LGAs to be decided after review of the
action plan.
Output 2.2: Increased effective utilization of Planning and budgeting tools by 2016. Achievements
include:
12
i. The PER process has been strongly revitalized, the PER Group has continued to conduct regular
meetings on the on-going 5 studies and an annual dissemination workshop is planned to be done
in October 2014.
ii. Training for MDAs on Prioritization and Planning and on the new budget cycle was carried out.
Implementation Status of Milestones as Per M&E Result Framework
During the period under review, 2 milestones (11%) were achieved, 8 milestones (44%) were on track, 5
milestones (28%) were pending and 3 milestones (17%) delayed in implementation. Figure 2 below
depicts the schematic presentation for KRA 2 status as at December, 2013.
11%
44%28%
17%
Fig 2: KRA 2 Milestone Status
Achieved
On Track
Pending
Delayed
The milestones delayed are those related to action plan for budget legal framework and MTSPBM.
13
The table below highlights the mid-year expenditure in KRA 2.
Component Name
Sources
of
Fund
Approved Budget Fund Released Total Commitment
and Expenditure
% of
expenditure
against fund
released
% of
expenditure
against budget
1 2 3 4 7 9 10
GOVERNMENT
BUDGET
DIVISION
GoT 1,500,000,000 525,390,000 - 0% 0%
BF 470,400,000 343,600,000 -
0% 0%
TOTAL FOR
COMPONENT
1,970,400,000 868,990,000 - 0% 0%
PMO-RALG GoT - - -
BF 44,000,000 44,000,000 - 0% 0%
TOTAL FOR
COMPONENT
44,000,000 44,000,000 - 0% 0%
TOTAL KRA 2 2,014,400,000 912,990,000 - 0% 0%
KRA 3: Budget Execution, Accountability and Transparency
Objective: Improved utilization of public resources in a more effective, efficient and transparent manner
by June 2016
Output 3.1: Improved public procurement performance by PEs by 2015. Achievements include:
i. 120 PEs were audited and the results indicated the compliance level of 64%.
ii. PPA 2011 has been disseminated to 85 Board of Directors and 189 Accounting officers of
Public Entities.
iii. A survey to update database on unit costs for common activities in construction works
undertaken in 7 regions.
iv. PMIS is in fully functional in 364 PEs with 699 registered users.
Output 3.2: Strengthened public sector procurement by June 2015. Achievements include:
i. Verification and update of the database for 1,109 Public Procurement and Supplies Staff (now
includes Tanga, Morogoro and Lake Zone).
ii. Draft of the National procurement policy is in place and the stakeholders’ inputs in the draft
National Procurement Policy.
Output 3.3: Strengthened capacity of MDAs, RSs and LGAs in Cash management by 2015.
Achievements include:
i. 163 LGA are operating 7 bank accounts.
ii. 271 staff from MDAs trained on cash management.
14
Output 3.5: Improved integrity and content of government financial statements and the migration from
IPSAS cash to IPSAS accrual accounting for all government accounts is progressing in accordance with
plans. Achievements include:
i. Action plan for migration towards IPSAS Accrual accounting is under implementation with the
opening balances for the financial year 2012/2013 for all MDAs established in order to facilitate
the implementation of IPAS Accrual;
ii. 250 accountants from MDAs and Regions were trained on migration to IPSAS Accrual.
iii. PFA has been reviewed by stakeholders and awaits to be tabled to Parliament for enactment.
Output 3.6: Improved accountability in management of Government Assets for supporting migration to
IPSAS Accrual. Achievements include:
i. An interim report for valuation of Government assets in 34 MDAs and RSs is available for
discussion;
ii. Asset management software is installed and tested while training of 40 staff will be undertaken
in fourth quarter of FY 2013/14.
Implementation Status of Milestones as per M&E Result Framework
Out of 40 assessed milestones in KRA 3, achievement was realized in 9 (22.5%) milestones, which
include finalization of National procurement policy draft, the preparation and issuing of public
procurement regulations. Satisfactory progress (on track) was recorded in 30 (75%) milestones and
1(2.5%) milestone was at risk.
Figure 3 below depicts the schematic presentation for KRA 3 status as at December, 2013.
15
22.50%
75%
2.50%
Fig 3: KRA 3 Milestone Status
Achieved
On Track
Pending
Delayed
At Risk
The table below shows the expenditure in KRA 3 as at December 2013
Component Name
Sources
of
Fund
Approved Budget Fund Released Total Commitment
and Expenditure
% of
expenditure
against fund
released
% of
expenditure
against budget
1 2 3 4 7 9 10
ACCOUNTANT
GENERAL DEPARTMENT
GoT 400,000,000 - - 0%
BF 4,355,547,615 1,947,250,000 1,250,607,908
64% 29%
TOTAL FOR
COMPONENT
4,755,547,615 1,947,250,000 1,250,607,908 64% 26%
GOVERNEMNT ASSET
MANAGEMENT
DIVISION
GoT 500,000,000 120,000,000 - 0% 0%
BF
2,010,000,000 1,490,500,000 155,476,647
10% 8%
TOTAL FOR
COMPONENT
2,510,000,000 1,610,500,000 155,476,647 10% 6%
PUBLIC
PROCUREMENT
POLICY DIVISION
GoT 100,000,000 30,000,000 - 0% 0%
BF 776,000,000 505,000,000 118,368,683
23% 15%
TOTAL FOR
COMPONENT
876,000,000 535,000,000 118,368,683 22% 14%
POLICY ANALYSIS
DEPARTMENT
GoT - - -
BF 800,000,000 - -
0%
TOTAL FOR
COMPONENT
800,000,000 - - 0%
TOTAL KRA 3 8,941,547,615 4,092,750,000 1,524,453,238 37% 17%
16
KRA 4: Budget Control and Oversight
Objective: Improved adherence and enforcing of MDAs and LGAs to financial internal controls, rules,
laws, regulations and audit recommendations by June 2016
Output 4.1: Increased coverage and quality of the internal audit functions by 2016. Achievements
include:
i. Internal Audit manual/guidelines, standards and quality assurance improvement programme in
line with International Standards developed.
ii. A consultant is already engaged for conducting technical audits for 70 projects.
iii. Survey to identify weaknesses of MDAs audit committees was conducted.
iv. Training on roles of internal auditors for 226 stakeholders (Mayors, Council Chairpersons and
Internal Audit) was conducted.
v. Training on roles of internal auditors to 114 audit committees’ chairpersons was conducted.
Output 4.2: Strengthened External audit functions by 2016. Achievements include:
i. 12 NAOT offices have been connected with WAN.
ii. The study on two of five Team Mate modules is completed. The activation of the Two of the five
Team Mate modules will be conducted.
iii. The Citizen Audit report for 5 General Audit Reports in Kiswahili language has been prepared
internally and printed.
Implementation Status of Milestones as per M&E Result Framework
During the period, 8 milestones (21.6%) were achieved, 25 milestones (67.6%) were on track, 2 (5.4%)
pending and 2 (5.4%) milestones delayed.
Figure 4 below depict milestone status for KRA 4 by December, 2013.
17
21.60%
67.60%
5.40% 5.40%
Fig 4: KRA 4 Milestone Status
Achieved
On Track
Pending
Delayed
The table below shows the expenditure in KRA 4 as of December 2013
Component
Name
Sources
of Fund Approved Budget Fund Released
Total Commitment
and Expenditure
% of
expenditure
against fund
released
% of
expenditure
against budget
1 2 3 4 7 9 10
INTERNAL
AUDITOR GENERAL
DIVISION
GoT 750,000,000 105,000,000 105,000,000 100% 14%
BF 1,589,000,000 844,810,000 576,103,000
68% 36%
TOTAL FOR
COMPONENT
2,339,000,000 949,810,000 681,103,000 72% 29%
NATIONAL
AUDIT OFFICE2
GoT 15,250,000,000 1,334,375,000 9,058,462,305 679% 59%
BF 2,422,000,000 786,075,000 786,075,000 100% 32%
TOTAL FOR
COMPONENT
17,672,000,000 2,120,450,000 9,844,537,305 464% 56%
PPRA
GoT 950,000,000 151,000,000 33,140,151 22% 3%
BF 1,117,188,000 343,906,000 333,191,391 97% 30%
Project 2,616,895,000 961,301,040 509,910,857 53% 19%
TOTAL FOR
COMPONENT
4,684,083,000 1,456,207,040 876,242,399 60% 19%
TREASURY
REGISTRAR
GoT 600,000,000 70,000,000 69,333,949 99% 12%
BF 1,028,800,000 758,100,000 309,707,699 41% 30%
TOTAL FOR
COMPONENT
1,628,800,000 828,100,000 379,041,648 46% 23%
TOTAL KRA 4 26,323,883,000 5,354,567,040 11,780,924,352 220% 45%
2 The commitment shown is for the construction of Dodoma office building which is designated to be NAOT Head quarters.
The construction contract was signed some three years ago with the value of TShs. 15bn. The constructors have finished
their work and the building is expected to be handed over in June, so far the committed amount need to be paid and the
Government is yet to release the full amount
18
KRA 5 – Change Management, Programme Monitoring and Communication
Objective: Improved management practices with increased accountability and leadership to better
manage performance of PFMRP.
Output 5.2: Utilization of EPICOR modules increased from seven to ten. Achievement includes:
i. 381 end users trained on EPICOR new version (9.05).
Output 5.3: All software development and module upgrades are coordinated with the overarching plans
for ICT integration. Achievements include:
i. The MoF server room has been modified to manage acquisition of software and development.
Output 5.4: Improved communication and public access to key fiscal information to stakeholders.
Achievements include:
i. The final draft of communication strategy has been submitted to the MoF Head of Departments
for comments.
Output 5.5: Coordination and Standardization of PFM Training Achieved. Achievements include:
A PFM training mapping exercise finalized and the draft report is under discussion.
Output 5.12: National systems and processes for intergovernmental transfers to LGAs streamlined and
rationalized. Achievements include:
The finalization of action plan for streamlining and rationalizing the national processes and
systems for intergovernmental transfers to LGAs. Implementation of some actions in the short
term started in FY 2013/14 and others will be included in FY 2014/15.
133 LGAs are all operating its accounts by using Epicor 9.05
Implementation Status of Milestones as per M&E Result Framework
In KRA 5, achievement recorded in 9 milestones (23.1%), 21 milestones (53.8%) recorded a satisfactory
progress, 1 milestone (2.6%) was pending and 8 (20.5%) milestones delayed for implementation.
Figure 5 below depicts the schematic presentation for KRA 5 status as at December, 2013.
19
23.10%
53.80%
2.60%
20.50%
Fig 5: KRA 5 Milestone Status
Achieved
On Track
Pending
Delayed
The table below shows the expenditure in KRA 5 as at December 2013
Component Name
Sources
of
Fund
Approved Budget Fund Released Total Commitment
and Expenditure
% of
expenditure
against fund
released
% of
expenditure
against budget
1 2 3 4 7 9 10
FINANCIAL
INFORMATION
MANAGEMENT SYSTEM
GoT 750,000,000 230,000,000 46,749,369 20% 6%
BF
1,744,000,000 325,000,000 92,480,038 28% 5%
TOTAL FOR COMPONENT 2,494,000,000 555,000,000 139,229,407 25% 6%
PMO-RALG GoT - - -
BF 786,270,000 79,610,000 - 0% 0%
TOTAL FOR COMPONENT 786,270,000 79,610,000 - 0% 0%
ADMNISTARTION
DEPARTMENT
GoT 200,000,000 140,000,000 27,660,000 20% 14%
BF 207,000,000 90,000,000 10,000,000 11% 5%
TOTAL FOR COMPONENT 407,000,000 230,000,000 37,660,000 16% 9%
GOVERNEMNT
COMMUNICATION
UNIT
GoT 300,000,000 64,900,000 22,200,000 34% 7%
BF 323,500,000 262,725,000 116,600,230 44% 36%
TOTAL FOR COMPONENT 623,500,000 327,625,000 138,800,230 42% 22%
PLANNING
DEPARTMENT
GoT 1,057,295,000 176,050,000 176,050,000 100% 17%
BF 1,566,300,000 1,217,300,000 924,056,469 76% 59%
Project 32,291,200 - - 0%
TOTAL FOR COMPONENT 2,655,886,200 1,393,350,000 1,100,106,469 79% 41%
ZANZIBAR BF 500,000,000 300,000,000 - 0% 0%
TOTAL FOR COMPONENT 500,000,000 300,000,000 - 0% 0%
TOTAL KRA 5 7,466,656,200 2,885,585,000 1,415,796,106 49% 19%
20
CHAPTER THREE
BUDGET EXECUTION
3.1 Funds Disbursement and Release
The approved budget for FY 2013/14 is Tshs. 46,398,324,415 out of which Tshs. 2,730,783,800 are
Project funds, Tshs. 22,557,295,000 Government funds and Tshs. 21,110,245,615 are Basket funds. Out
of the committed funds (Tshs.16,217,888,000), Basket fund donors disbursed Tshs. 14,463,386,303.
Basket Funds and the status of disbursements is shown in table 3.1 below.
Table 3.1: Basket Funds Disbursement by Development Partners for July-December 2013/14
DPs Commitment Actual Disbursement Difference
DP
DPs Local
Currency
Amount in
(US )
Amount in
(Tshs.) Date
Amount
USD Amount in Tshs.
Amount
USD
Amount in
Tshs.
DANIDA DKK 11,876,870 2,064,200 3,302,720,000 22.07.2013 1,896,844 3,041,608,322
167,356
261,111,678
KFW EUR 600,000 777,180 1,243,488,000 28.07.2013 787,863 1,263,818,917
(10,683)
(20,330,917)
Canada CAD 2,024,903 1,975,900 3,161,440,000 18.10.2013 1,927,897 3,075,987,846
48,003
85,452,154
DFID GBP 2,661,463 4,023,600 6,437,760,000 30.08.2013 3,097,702 4,968,188,168
925,898
1,469,571,832
Ireland EUR 1,000,000 1,295,300 2,072,480,000 05.09.2013 1,318,300 2,113,783,049
(23,000)
(41,303,049)
Sub
Total 10,136,180 16,217,888,000 9,028,606 14,463,386,303
1,107,574
1,754,501,697
3.2 Fund flows
The available Basket funds in the holding account was Tshs. 21,274,239,543 out of which Tshs.
1,661,787,834 was opening balance, Tshs. 5,149,065,406 was unspent balance returned by components
and Tshs. 14,463,386,303 was disbursement by DPs. The amount released to components was Tshs.
10,111,366,000 as detailed in table 3.2.
21
Table 3.2 Movement in Holding Account with the Bank of Tanzania from July-December 2013/14
PFMRP BASKET FUND HOLDING ACCOUNT No. 9931206081
Date Description
Amount in
USD Amount in Tshs.
01.07.2013 (a) Opening Balance 1,042,082 1,661,787,834
Add Inflows
Returned Unspent Balances
02.08.2013 Vote 21 (Budget & External Finance)
341,401 550,460,000
02.08.2013 Zanzibar
303,506 491,674,075
16.08.2013 Vote 50
500,962 811,377,873
11.09.2013 Vote 50 1,241,685 2,011,145,137
11.09.2013 Vote 21 (CPAD)
81,555 132,108,150
04.12.2013 Vote 23 (ACGEN)
11,202 18,060,747
16.12.2013 Vote 23 (ACGEN)
395,709 637,530,598
20.12.2013 Vote 50
310,050 496,708,825
(b) Unspent Balance Total 3,186,069 5,149,065,406
DP Releases
22.07.2013 Denmark 1,896,844 3,041,608,322
28.07.2013 KfW
787,863 1,263,818,917
30.08.2013 DFID 3,097,702 4,968,188,168
08.09.2013 Ireland 1,318,300 2,113,783,049
18.10.2013 CIDA 1,927,897 3,075,987,846
(c) DP Release Total 9,028,606 14,463,386,303
Funds Available (a+b+c) 13,256,757 21,274,239,543
Less Outflows `
23.08.2013 Accountant General
546,902 877,025,000
23.08.2013 PMO-RALG
220,077 352,920,000
23.08.2013 Vote 7,21 and 50 2,008,144 3,220,308,000
04.09.2013 NAOT
490,277 786,075,000
23.10.2013 Ministry of Natural Resources and Tourism 90,000,000
22
56,426
26.11.2013 Vote 7,21 and 50 2,194,386 3,508,693,000
26.11.2013 Accountant General
669,334 1,070,225,000
12.12.2013 PMO-RALG
129,170 206,120,000
Amount Transferred to Exchequer 6,314,716 10,111,366,000
Balance in The Holding Account as at 31 December,2013 6,942,041 11,076,199,184
Note: Holding Account Balance have been translated at Tshs. 1,595.5248 per US $ at 31 December 2013
3.3 Actual Expenditure and Commitment
During the reporting period, actual expenditure and commitment amounted to Tshs. 15,124,212,175
equivalent to 107% of the total funds released. Actual expenditure and commitment by source was GoT
Tshs. 9,591,295,774 equivalent to 320% of the released funds3; Project Tshs. 509,910,857 (53%) and
Basket Funds Tshs. 5,023,005,545 equivalent to 50% of the released funds. Table 3.3 below is the
summary of overall funds release against actual expenditure for July 2013 to December 2013 while table
3.4 shows the summary breakdown by component recipients.
Table 3.3: PFMRP IV Summary of Fund Release and Actual Expenditure and Commitment for July-
December 2013/14
SOURCE OF FUNDS
APPROVED
BUDGET
CUMMULATIVE
RELEASE
CUMMULATIVE
EXPENDITURE
AND
COMMITMENT
% ON
RELEASE
GOT 22,557,295,000 3,000,415,000 9,591,295,7744 320%
PROJECT 21,110,245,615 10,111,366,000 5,023,005,545 50%
BF 2,730,783,800 961,301,040 509,910,857 53%
GRAND TOTAL 46,398,324,415 13,399,074,040 15,031,732,138 117%
3 The over expenditure and commitments is caused by NAO see Note 1& 2
4 The over expenditure and commitments is caused by NAO see Note 1 & 2
23
Table 3.4: PFMRP IV Fund Release against Expenditure and Commitment by component for FY 2012/13
Component Name
Sources
of
Fund
Approved Budget Fund Released Expenditure to
date
Commitments to
Date
Total
Commitment and
Expenditure
Fund Balance Budget Balance
% of
expenditure
against budget
1 2 3 4 5 6 7 8 9 10
POLICY
ANALYSIS
DEPARTMENT
GoT 100,000,000 53,700,000 52,700,000 - 52,700,000 1,000,000 46,300,000 53%
BF 1,028,000,000 86,000,000 86,000,000 - 86,000,000 - 942,000,000 8%
Project 56,597,600 - - - - - 56,597,600 0%
TOTAL FOR COMPONENT 1,184,597,600 139,700,000 138,700,000 - 138,700,000 1,000,000 1,044,897,600 12%
MINISTRY OF
NATURAL
RESOURCES AND
TOURISM
BF 162,250,000 90,000,000 28,027,000 - 28,027,000 61,973,000 72,250,000 17%
TOTAL FOR COMPONENT 162,250,000 90,000,000 28,027,000 - 28,027,000 61,973,000 72,250,000 17%
EXTERNAL
FINANCE
GoT 100,000,000 - - - - - 100,000,000 0%
BF 379,060,000 162,060,000 85,398,980 73,260,000 158,658,980 3,401,020 217,000,000 42%
Project 25,000,000 25,000,000 0%
TOTAL FOR COMPONENT 504,060,000 162,060,000 85,398,980 73,260,000 158,658,980 3,401,020 342,000,000 31%
BF 1,431,200,000 559,040,000 77,652,500 - 77,652,500 481,387,500 872,160,000 5%
TOTAL FOR COMPONENT 1,431,200,000 559,040,000 77,652,500 - 77,652,500 481,387,500 872,160,000 5%
GOVERNMENT
BUDGET
DIVISION
GoT 1,500,000,000 525,390,000 - - - 525,390,000 974,610,000 0%
BF 470,400,000 343,600,000 - - - 343,600,000 126,800,000 0%
TOTAL FOR COMPONENT 1,970,400,000 868,990,000 - - - 868,990,000 1,101,410,000 0%
Component Name
Sources
of
Fund
Approved Budget Fund Released Expenditure to
date
Commitments to
Date
Total
Commitment and
Expenditure
Fund Balance Budget Balance
% of
expenditure
against budget
1 2 3 4 5 6 7 8 9 10
ACCOUNTANT
GENERAL
DEPARTMENT
GoT 400,000,000 - - - - - 400,000,000 0%
BF 4,355,547,615 1,947,250,000 850,607,908 - 1,250,607,908 - 2,408,297,615 29%
TOTAL FOR COMPONENT 4,755,547,615 1,947,250,000 850,607,908 - 1,250,607,908 - 2,808,297,615 26%
PPRA
GoT 950,000,000 151,000,000 - 33,140,151 33,140,151 117,859,849 799,000,000 3%
BF 1,117,188,000 343,906,000 59,401,380 273,790,011 333,191,391 10,714,609 773,282,000 30%
Project 2,616,895,000 961,301,040 509,910,857 - 509,910,857 451,390,183 1,655,593,960 19%
TOTAL FOR COMPONENT 4,684,083,000 1,502,699,040 569,312,237 306,930,162 876,242,399 626,456,641 3,181,383,960 19%
GOVERNEMNT
ASSET
MANAGEMENT
DIVISION
GoT 500,000,000 120,000,000 - - - 120,000,000 380,000,000 0%
BF 2,010,000,000 1,490,500,000 155,476,647 - 155,476,647 1,335,023,353 519,500,000 8%
24
TOTAL FOR COMPONENT 2,510,000,000 1,215,000,000 155,476,647 - 155,476,647 1,059,523,353 1,295,000,000 6%
PUBLIC
PROCUREMENT
POLICY DIVISION
GoT 100,000,000 30,000,000 - - - 30,000,000 70,000,000 0%
BF 776,000,000 505,000,000 93,878,308 24,490,375 118,368,683 386,631,317 271,000,000 15%
TOTAL FOR COMPONENT 876,000,000 535,000,000 93,878,308 24,490,375 118,368,683 416,631,317 341,000,000 14%
INTERNAL
AUDITOR
GENERAL
DIVISION
GoT 750,000,000 105,000,000 105,000,000 - 105,000,000 - 645,000,000 14%
BF 1,589,000,000 844,810,000 481,633,000 94,470,000 576,103,000 268,707,000 744,190,000 36%
TOTAL FOR COMPONENT
2,339,000,000
949,810,000
586,633,000
94,470,000
681,103,000
268,707,000
1,389,190,000
29%
NATIONAL AUDIT
OFFICE
GoT 15,250,000,000 1,334,375,000 1,312,036,182
7,746,426,1235 9,058,462,305 (7,724,087,305) 13,915,625,000 59%
BF 2,422,000,000 786,075,000 786,075,000 - 786,075,000 - 1,635,925,000
32%
TOTAL FOR COMPONENT 17,672,000,000 2,120,450,000 2,098,111,182 7,746,426,123 9,844,537,305 (7,724,087,305) 15,551,550,000 56%
TREASURY
REGISTRAR
GoT 600,000,000 70,000,000 69,333,949 - 69,333,949 666,051 530,000,000 12%
BF 1,028,800,000 758,100,000 309,707,699 - 309,707,699 448,392,301 270,700,000 30%
TOTAL FOR COMPONENT 1,628,800,000 828,100,000 379,041,648 - 379,041,648 449,058,352 800,700,000 23%
FINANCIAL
INFORMATION
MANAGEMENT
SYSTEM
GoT 750,000,000 230,000,000 46,749,369 - 46,749,369 183,250,631 520,000,000 6%
BF 1,744,000,000 325,000,000 84,534,038 7,946,000 92,480,038 232,519,962 1,419,000,000 5%
TOTAL FOR COMPONENT 2,494,000,000 555,000,000 131,283,407 7,946,000 139,229,407 415,770,593 1,939,000,000 6%
ADMNISTARTION
DEPARTMENT
GoT 200,000,000 140,000,000 27,660,000 - 27,660,000 112,340,000 60,000,000 14%
BF 207,000,000 90,000,000 10,000,000 - 10,000,000 80,000,000 117,000,000 5%
TOTAL FOR COMPONENT 407,000,000 230,000,000 37,660,000 - 37,660,000 192,340,000 177,000,000 9%
GOVERNEMNT
COMMUNICATION
UNIT
GoT 300,000,000 64,900,000 22,200,000 - 22,200,000 42,700,000 235,100,000 7%
BF 323,500,000 262,725,000 116,600,230 - 116,600,230 146,124,770 60,775,000 36%
TOTAL FOR COMPONENT 623,500,000 327,625,000 138,800,230 - 138,800,230 188,824,770 295,875,000 22%
PLANNING
DEPARTMENT
GoT 1,057,295,000 176,050,000 176,050,000 - 176,050,000 - 881,245,000 17%
BF 1,566,300,000 1,217,300,000 238,928,184 685,128,285 924,056,469 293,243,531 349,000,000 59%
Project 32,291,200 - - - - - 32,291,200
5 The commitment shown is for the construction of Dodoma office building which is designated to be NAOT Head quarters. The construction contract was
signed some three years ago with the value of TShs. 15bn. The constructors have finished their work and the building is expected to be handed over in June, so
far the committed amount need to be paid and the Government is yet to release the full amount
25
TOTAL FOR COMPONENT 2,655,886,200 1,393,350,000 414,978,184 685,128,285 1,100,106,469 293,243,531 1,262,536,200 41%
ZANZIBAR
BF 500,000,000 300,000,000 - - - 300,000,000 200,000,000 0%
TOTAL FOR COMPONENT 500,000,000 300,000,000 - - - 300,000,000 200,000,000 0%
TOTAL FOR PROGRAM 46,398,324,415 14,073,082,040 5,785,561,230 8,938,650,945 15,124,212,175 (1,747,772,228) 32,243,644,775 33%
TOTAL BY
SOURCE
GoT 22,557,295,000 3,000,415,000 1,811,729,499 7,779,566,274 9,591,295,774 (6,590,880,774) 19,556,880,000 43%
BF 21,110,245,615 10,111,366,000 3,463,920,874 1,159,084,671 5,023,005,545 4,391,718,363 10,998,879,615 24%
Project 2,730,783,800 961,301,040 509,910,857 - 509,910,857 451,390,183 1,769,482,760 19%
TOTAL FOR PROGRAM 46,398,324,415 14,073,082,040 5,785,561,230 8,938,650,945 15,124,212,175 (1,747,772,228) 32,325,242,375 33%
26
CHAPTER FOUR
CHALLENGES AND RECOMMENDATIONS
During the period, program implementation encountered challenges including:
(i) Late submission of reports from some components: The delay in submission of reports
from some components is one of challenges the Secretariat has been facing. The
components do not submit reports timely, which results in delays in the finalisation of a
consolidated report for sharing with stakeholders.
(ii) Lack of M&E Specialist: The delay in having in place the Monitoring and evaluation
specialist for the programme contributed to the inadequate follow-up of M&E framework
and reporting. The M&E Specialist was recruited at the end of reporting period.
(iii)Delays in ToRs/procurement approval process: There are some cases in which
components provide incomplete or unsatisfactory information in the draft ToRs for
recruitment of services/programme inputs. This has resulted in significant delays in DPs
granting “no objection” to the undertaking of some activities impacting on milestone
progress.
(iv) Lack of GoT disbursements: DPs have expressed concern over the low level of
disbursement from the GoT side. As at Dec 2013, this represented only 13% of the funds
committed. This affected a number of components in undertaking their activities.
Recommendations
(i) Component managers have to appoint officers who will be responsible for preparing and
submitting the report timely to PFMRP secretariat. These officers will work with the
M&E specialist to ensure reporting is according to best practice.
(ii) The components should ensure that comprehensive Terms of Reference are submitted to
the secretariat in good time to allow for the due procurement process from no objection
stage to actual steps required by procurement regulations.
(iii)The recently agreed quarterly financial and procurement reporting should facilitate the
stakeholders to discuss and seek remedial solutions for red flags and challenges identified
during the quarter.
27
Annex 1
PFMRP MID-YEAR REPORT FOR FY 2013/14
PFMRP IV M&E RESULT FRAMEWORK 2012 – 2017
STATUS AS AT 30TH
DECEMBER 2013
CODE: MILE STONE DESCRIPTIONS STATUS
(State
whether
Achieved, On
track,
Delayed
Pending, At
Risk)
COMMENTS ON THE STATUS RESPONSIBLE
COMPONENT
KRA 1: Revenue Management
Output 1.1: Improved quality of forecasting of fiscal aggregates for three years on a rolling basis
1.1.1 Undertake a study to identify ways of
improving tax revenue forecast and action
plan by June 2014
Pending The study is yet to be conducted. There is need to
develop capacity development plan to have trainers
(ToT) who are well equipped on revenue forecasting
PAD
1.1.2 A team of trainers in revenue forecasting
developed by June 2014 (The milestone to be
reviewed in line with recommendation from
the study)
On track A study/training to 15 staff on macroeconomic
diagnostic was conducted in December 2013. The
received funds in Q3 will be used to conduct more
traning. If training is done appropriately, the ToT can
train MDAs.
PAD
28
Output 1.2:The Government improves efficiency in domestic revenue mobilization both at the policy and the administration levels by
updating legal instruments towards international best practices
1.2.1 The study on Non Tax Revenue (NTR) -
“Integration and Harmonization of Revenue
Collection Systems” completed by November
2013.
On track Draft report of the study has been circulated to
stakeholders for comments and inputs. Stakeholders
workshop held in Dec 2013 and comments shared
with the consultant. Final report due in April 2014.
PAD
1.2.2 Action plan to implement the
recommendations from review of non-tax
collection developed by June 2014
On track The action plan will be developed once the study is
finalized. To be included in FY2014/15 so that
stakeholders are called to work on action plan. There
is also a possibility to draw on DPs who can assist
with action plan workshop so that it is finalized
before June 2014.
PAD
1.2.3 Costed action plan incorporated in FY
2015/16 for implementation
Pending This milestone depends on the completion of
milestone 1.2.2
PAD
1.2.4 Submission of a bill to Parliament to enact
Tax Administration Act for the purpose of
establishing a common tax procedure among
different taxes collected by Tanzania revenue
authority (TRA) by February 2014
On track The Tax Administration Bill drafted and submitted to
Attorney General’s Office for vetting. Now waiting
for Parliament for approval hopefully in next budget
session. Harmonizing of tax procedures due to EAC
commitments.
PAD
1.2.5 Review laws, rules and regulations for local
government revenue system to improve LGA
own sources in line with best practice by
June, 2016
On track
Stakeholders meeting to review local government
finance Act No 7,8 and 9 of 1982 and urban
rating Act has been done.
Preparation of Cabinet Bill of an Act to amend
the Local Government Finance Act No. 7, 8 and 9
of 1982 and submit to the cabinet are scheduled
PMO-RALG
29
to be implemented in FY 2014/15
1.2.6 Take policy action to improve revenue
mobilization from natural resource sectors by
June, 2014
On track Review of antiquity entrance fee is completed
Review of Forest loyalty charges for forest
product has been done and new charges are in use
Review of photographic tourism regulation is in
final stage
Collection of tourism development levy started
(TRA collected on behalf of MNRT)
MNRT
1.2.7 Computerized revenue collection to at least
50% from MNRT by June 2016
On track The Ministry has developed and started using
Tourism Hunting Management System, Photographic
Tourism Management System & Tourism Business
Registration and Licensing System. Training on
Tourism Business Registration and Licensing System
has been done to 21 users of the system.
MNRT
1.2.8 Review the current system of tax exemptions
with the value-added Tax (VAT) regime and
amend the VAT Act with a view to be in line
with international best practices by November
2014
On track
The Cabinet paper for the VAT Act is being prepared
with support from IMF consultant. The draft cabinet
paper will be shared to stakeholders for comments.
Draft concept submitted to Cabinet in Dodoma and it
now approved. Estimated to bring in more revenue
(about TZS1.1 trillion per year). Balance of activity
to be shared in FY2014/15. PAD to share roadmap
PAD
Output 1.3: Strengthened capacity of local government authorities to collect revenue by 2015
30
1.3.1 Completed assessment and evaluation of
revenue potential for major sources of
revenue to all LGAs by June 2014
On track The assessment and evaluation is completed and draft
report will be shared to stakeholders in the next
quarter
PMO-RALG
1.3.2 Local Authorities Tax administration teaching
and practice modules established and TOT
completed for all finance management staff at
the regional levels by June 2014
On track The milestone was planned to be implemented using
Local funding. Fund for this milestone was not
released. The milestone dismissed.
PMO-RALG
1.3.3 PMO - RALG staff and Finance Management
Officers at RS are trained in tax revenue
plans and budgets to spearhead LGAs tax
reviews and reforms, June 2014
On track The ToR has been prepared and submitted to DPs for
no objection. Request. The training will be conducted
upon approval from the DPs.
PMO-RALG
1.3.4 Four (4) revenue accountants, 3 Council
management team members and 1 FMO from
each LGA and RS are trained on own source
revenue management in every two years.
On Track The milestone planned activities scheduled to be
implemented in FY 2014/15.
PMO-RALG
1.3.5 Establishment of known and clear revenue
data base by each source of revenue, presence
of trained personnel and a clear follow up
arrangement at PMORALG and RS levels by
June, 2015
On track The milestone is planned to be implemented during
FY 2014/15, I-tax revenue database to be
implemented.
PMO-RALG
1.3.6 Completed study on the effectiveness,
relevancy and sufficiency of the provisions of
the Local Government Finances Act No. 9 by
June, 2014
On track The Finances Act No.9 was reviewed and areas to be
amended were identified and a report is in place. The
report is to be shared with other stakeholders.
Stakeholders meetings will be carried in FY 2014/15.
PMO-RALG
1.3.7 A bill for an act to amend the Local
Government Finances Act No.9 of 1982 is
finalized and submitted to the Cabinet by June
At risk The milestone will be implemented in F Y 2014/15. PMO-RALG
31
2014
Output 1.4: Increase of Donor funding that flows through the exchequer system by 2016
1.4.1 National framework for managing
development cooperation (Development
Cooperation Framework, DCF) reviewed,
disseminated and put in operation by March
2014
On track Development Cooperation Framework (DCF) final
draft is already shared with Government stakeholders
and DP’s. DP’s comments are waited to be
incorporated.
EFD
1.4.2 Revised AMP user guideline clearly
communicated to both parties by December
2014
On track AMP user guidelines to be shared with stakeholders.
Training of EFD staff on AMP New Version awaiting
release of funds.
EFD
1.4.3 Analysis of the trends of the direct project
fund portfolio disbursed via exchequer system
published and shared annually by June 2015
On Track Collection and compilation of data have been done,
the analysis of which is expected to be undertaken in
the fourth quarter of FY 2013/14.
EFD
KRA 2: Planning and Budgeting:
Output 2.1: Strengthened capacity of MDAs, RSs and LGAs in implementing program based budgeting by June 2016.
2.1.1 All Sub programs, program objectives and
performance indicators defined by December
2014
Delayed Programs Based Budgeting (PBB) template
developed and MOF organized a working session end
of August 2013 with 8 pilot Ministries (Ministry of
Finance, Water, Works, Transports, Education,
Health, Community Development and Agriculture).
The assignment to MDAs was to convey FY 13/14
budget into PBB format. Another session will be
conducted in third quarter in this FY.
GBD
2.1.2 Chart of Accounts modified to accommodate Achieved Chart of accounts has been modified to accommodate GBD
32
program based budgeting by Aug 2013 PBB.
2.1.3 MTEF reviewed to make program based
budget compatible by September 2016
On track The reviewed MTEF will build on the existing one.
MDAs and LGAs have been informed on the coming
change, preparation began. It was agreed to move the
timeline for all MDAs and LGAs to be compatible to
September 2016 with continuous follow-up of the
roll-out. The MTEF will partly be reviewed in the
fourth quarter of FY 2013/14.
GBD
2.1.4 Progress on the PBB Action plan
implementation annually
Delayed The activities lagging behind will be dealt with in the
FY 2013/14
GBD
2.1.5 Completed phased training for all MDAs and
RSs by September 2016
On track Existing PBB Action Plan will be reviewed after the
third quarter working session with pilot Ministries. It
will include a Policy paper in order for the Cabinet to
formally authorize the use of PBB. PBB will be
implemented in stepwise fashion starting with a
number of Pilot ministries and then move to other
MDAs, regions and LGAs. All MDAs and LGAs to
be compatible by September 2016. The training to
selected MDAs will be conducted after the review.
GBD
2.1.6 Completed phased training for all LGAs by
September 2016
Pending The pilot for MDAs is still ongoing. The training for
LGAs will be decided at a later stage.
GBD
Output 2.2:Increased effective utilization of Planning and budgeting tools by 2016
2.2.1 MTSPBM reviewed by June 2013 Delayed It is not done yet as it requires a joint work with the
Planning Commissioner. However, initial timeline
won’t be met as MTSPBM is planned to be reviewed
this financial year (2013/2014).
GBD
33
2.2.2 Sixty MDAs, 21 RSs and 133 LGAs trained
in MTSPBM by June 2014
On track However, completion may be delayed as MoF is only
at the stage of developing a Training Budget Manual.
GBD
2.2.3 Reviewed MTSPBM to be applied during FY
2013/14
Pending To be applied in FY 2014/15 GBD
2.2.4 Annexes to budget book volume II for
Executive Agencies completed by June 2014
On track This milestone will be partially achieved by timeline,
as only some of the 133 public agencies will be
covered by June 2014. It will be included in the PBB
Action Plan; the level of detail required for these
annexes is still under discussion. MoF plans to
organize training on MTEF to public agencies.
GBD
2.2.5 Action plan on implementation of
recommendations on budget legal framework
completed by June 2013
The milestone to be shifted to Planning
Division and CB to share the AFRITEC
report with Planning Division.
Delayed Mainly due to external constraints. Review of the
Public Finance Act is under process but the new
Constitution is likely to further delay it. The Local
Government Finance Act will also need to be
changed, as it currently doesn’t include IFMS. The
PPP Act will also be changed. In parallel, the
Parliamentary Budget Committee is pushing to have
a separate Budget Act.
GBD
2.2.6 At least 10 PER Main Dialogue meetings held
by June 2016
On track The PER process has been strongly revitalized since
June 2012. The PER Champion Group has had
regular meetings on the on-going 5 studies and an
annual dissemination workshop is planned for
beginning of October 2014.
GBD
2.2.7 Phased training to MDAs, RSs and LGAs
Budget Committees on resources
prioritization and planning
On track Training for MDAs on Prioritization and Planning
was carried out and also MDAs were oriented to the
New budget cycle for their comments and
GBD
34
implementation
Output 2.3: Strengthened capacity of LGAs for MTEF preparation by 2015
2.3.1 Proposal for budget information to be
included in the Budget guideline to be
submitted to National Budget Guideline
committee by October annually.
Achieved The process of collecting, scrutinizing and submitting
all LGAs own source budget information to National
Budget guideline Committee has successful been
done.
PMO-RALG
2.3.2 Recommendations of various studies on
LGAs budget allocation formula reviewed by
June 2014
On track ToR developed and shared to stakeholders, it will be
carried in the third and fourth quarters of FY
2013/14. The no objection was granted.
PMO-RALG
2.3.3 Agreement on improvement of LGAs budget
allocation formulas among the sector Ministry
(PMORALG, MOF, PO-PSM and Sectors)
completed by June 2014
Pending Pending achievement of 2.3.2. PMO-RALG
2.3.4 All LGAs budget allocation formulae
reviewed by June, 2014
Pending Pending achievement of 2.3.3 PMO-RALG
2.3.5 All reviewed LGAs budget allocation
formulae applied in the budget preparation
during 2014/15 for the FY 2015/16 budget.
Pending Pending achievement of 2.3.4 and the activity is
planned to be conducted in the FY 2014/15.
PMO-RALG
2.3.6 Monitoring arrangements are in place for
measuring deviations in actual releases
against all formula-based allocations to LGAs
by June 2015.
Pending Pending achievement of above milestones PMO-RALG
Output 2.4: Quality and comprehensiveness of budget documentation as well as public access to key fiscal information
KRA 3: Budget Execution, Transparency and Accountability
35
Output 3.1 Strengthened public sector procurement by June 2015
3.1.1 Action Plan for implementing Public
Procurement Act is developed by December
2014
On track Regulations for implementing PPA, 2011 have been
approved for use from December, 2013. Action plan
for implementing the Act will be developed in
collaboration with other key stakeholders in the
fourth quarter of FY 2013/14.
PPRA
3.1.2 New public procurement regulations prepared
and issued by June 2013
Achieved Regulations prepared, signed and gazetted PPD
3.1.3 Procurement training needs assessment
exercise completed by Dec 2014
On track ToRs for TNA in MDAs developed and shared to
stakeholders for comment.
PPD
3.1.4 [300] procurement staff trained on public
procurement by June 2017 as per TNA.
On track It will be done after completion of TNA exercise. It
was agreed that the number and type of training will
be revisited depending on the findings and
recommendations of the TNA. There may be need to
prepare for training modules given the TNA
recommendations.
PPD
3.1.5 Strategy to develop Procurement Management
Unit (PMU) structures in Public Sector by
June 2015
On track Stakeholders’ meeting (compromised Head of PMUs)
was held to provide comments on proposed PMU
structure. At the moment the PPD is incorporating
comments provided by stakeholders and will be
presented to DAHRM for further actions.
PPD
3.1.6 Procurement and supplies staff database
maintained and updated by December, 2015
On track Data base information for 1,109 Public Procurement
and Supplies Staff have been verified (in Tanga,
Morogoro and Mwanza region) and updated.
PPD
36
3.1.7 National procurement policy draft is finalized
by Dec 2014
Achieved Draft National Public Procurement Policy finalized
and submitted to PS MOF for further actions.
PPD
3.1.8 Stakeholders’ comments incorporated by
June, 2013
Achieved Stakeholders’ meeting conducted and comments
incorporated in the draft National Procurement
Policy.
PPD
3.1.9 PPDs' office and staff capacity enhanced by
June, 2017
On Track PPD
3.1.10 -
3.1.17
The following milestones are related to the
final national procurement policy:
20 members of PPD staff equipped with
skills on public policy formulation,
implementation and evaluation by June,
2013
National procurement policy developed and
shared by December, 2014
National procurement policy (NPP) strategy
developed and implemented by June 2015
Printing and uploading the NPP on the
website by June, 2015
National procurement policy and
procurement law synchronized by June,
2015
Monitoring the implementation of the
National procurement policy by June, 2015
Evaluation and feedback of the
implementation of the National procurement
On track
On track
On track
Eight PPD staff capacity enhanced with skills on
public policy formulation, implementation and
evaluation. The training for another 8 PPD Staff is
scheduled in the fourth quarter.
The fund re-allocation request for implementing the
said milestone was submitted, a response is awaited.
Will be done after completion of the National Public
Procurement Policy. The 2014 onwards targets for
the national procurement policy are all on track –
targets within reach.
PPD
37
policy by June, 2016
1000 Stakeholders acquainted with the
National procurement Policy by June, 2016
Output 3.2: Strengthened capacity of MDAs Rs and LGAs in Cash Management by 2015
3.2.1 600 staff of MDAs and LGAs Trained on cash
Management using standardized materials by
June 30 2015
( Milestones to be reviewed and aligned after
the East AFRITAC recommendations on Cash
and Banking Arrangement Mission)
On track 271 staff from MDAs trained on cash Management.
100 staff from MDAs will be trained in cash
management on the third quarter of FY 2013/14
ACGEN
3.2.2 Six bank accounts operated by each LGA by
December, 2013
Achieved Each LGA is now operating with six bank accounts ACGEN
Output 3.3: Strengthened public debt management capacity by 2015
3.3.1 The agreed actions arising from the Feb. 2012
World Bank debt management report shared
with key stakeholders by July 31, 2012
Achieved The report has been shared and it is available in the
Ministry of Finance website
PAD
3.3.2 Debt management policy developed and
shared by June 2014
On track
With technical support from the World Bank and the
East African MEFMI, MOF conducted a debt
sustainability analysis (DSA) in September 2013,
which covers both domestic and external debt. The
DSA report will be published by March 2014.
PAD
38
3.3.3 Capacity of 50 Public Debt Management Staff
enhanced to undertake DSA on external,
domestic debt and contingent liabilities by
June 2014
On track
Despite funds not being available, capacity continues
adhoc basis (such as secondment of GoT to MEFIM
on risk management and another to WB HQ) while
waiting for administrative measures to be completed
on the approval of DMO structure. The structure
would include a middle office - MO (PAD), front
office -FO (BoT) and Back Office- BO (ACGEN)
PAD, ACCGEN
3.3.4 Reviewed Government Loans, Guarantees
and Grants Act submitted to the Cabinet by
June 2014
On track
Review in progress. The Government Loans,
Guarantee and Grants Act, No.30 Cap. 134 (R.E
2004) reviewed; and the medium Term Debt Strategy
reviewed too.
PAD
3.3.5 Debt Management department established by
June 2016.
On track
Establishment of DMO office is awaiting approval
from PO-PSM
PAD
Output 3.4: Improved Integrity and content of government financial statements and migration from IPSAS cash Basis to
IPSAS accrual is progressing in accordance with the plans.
3.4.1 Completed review of the IPSAS guideline
issued by PMORALG in 2008/09 to
accommodate the recent IPSAS updates by
June 2013
At risk The milestone is not clear to ACCGEN
ACGEN
3.4.2 Training to MDAs, RSs and LGAs accounting
officers to develop awareness on IPSAS
Accrual by June 2014
On track 320 people (chief accountants from MDAs, Public
Accounts Committee (PAC) members and staff from
foreign embassies) have been trained. 172 accounting
officers are expected to be trained in fourth quarter of
FY 2013/14.
ACGEN
39
3.4.3 Capacity building to 250 staffs from MDAs,
RSs and embassies to enhance skills in IPSAS
Accrual by 2014.
Achieved 250 staff from MDAs and Embassies were trained in
IPSAS accrual.
ACCGEN
3.4.4 Public Finance Act. of 2001 and regulations
reviewed to address migration to IPSAS
accrual by 2016
On track The work is in progress. The Public Finance Act has
been reviewed by stakeholders. It is waiting to be
tabled to the Parliament for enactment.
ACGEN
3.4.5 Consolidated template of financial statements
to include MDAs, Rs, LGAs, Controlled
entities and GBEs developed by June 2016
On track Currently the template of financial statement of
MDAs and RS has been completed. The rest of
entities will be taken on board as per the road map.
ACGEN
3.4.6 250 government accountants in MDAs /LGAs
trained in IPSAS accrual and accrual
modules for Epicor by September 2013
Achieved Training was conducted on IPSAS Accrual basis to
MDAs, RS & Embassies accountants.
ACGEN
3.4.7 Plan for migration towards IPSAS Accrual
accounting is completed by December 2013.
Achieved The 5 year road map is in place and often upgraded to
be fully compliant to IPSAS.
ACGEN
3.4.8 Plan is approved for execution and
stakeholder information sessions have been
completed by January 2014
Achieved The plan has been approved and is in use. Awareness
been done to some of the stakeholders (e.g. PAC
members). Other groups will follow
ACGEN
3.4.9 All legislative and policy supports have been
identified by 31st Dec.2014
On track Some of the legislative and policy supports have been
identified such as accounting policy, PFA,
Accounting manual, LGF act and TR act. The
committee is still collecting opinions from various
stakeholders
ACGEN
40
3.4.10 Milestones for the transition have been
identified and approved (E.g. Public Finance
Act of 2001 and Regulations) amendments by
October 2014
On track Pending the completion of milestone 3.4.5 (Review
of PFA and its Regulations) Some milestones have
been identified
ACGEN
3.4.11 Consolidated accounts with IPSAS Accrual
by June 2017
On track Chart of accounts in use by LGAs has been reviewed;
the harmonization to integrate with central
government chart of accounts process is on-going, the
process is planned to be completed in March 2014.
Preparation and communication of reporting
templates for consolidation is completed.
ACGEN
3.4.12 ACGEN to compile and produce financial
statements disaggregated on the basis of
economic classification and by sectors
Output 3.5: Improve accountability in management of Government asset management for supporting migration to IPSAS
Accrual
3.5.1 Uploading of 70 additional MDAs in
EPICOR by June 2017
On track Currently, 35 MDAs and RS already uploaded in
SAGE and it is anticipated that more 7 MDAs will be
uploaded in SAGE for FY 2013/14.
GAMD
3.5.2 Asset Management (tracking) software
installed, tested and users are trained on use
of software by June 2014
On track Assets management (tracking) software installed and
tested, it is planned that at the end of June 2014, 40
staff will be trained on the same.
GAMD
3.5.3 GAM capacity enhanced on asset
management function by June 2016
On Track 40 staff scheduled to attend training by June 2014. GAMD
3.5.4 Asset Management Policy prepared and
submitted by June 2015
On Track Contract has been awarded and ongoing. The
consultant has submitted an inception report and
feedback provided by the client will be incorporated
for submission of an interim report.
GAMD
41
3.5.5 Valuation of Government assets in 34 MDAs
and RSs completed by June 2017
On Track A consultant has submitted an interim report and
feedback provided by the client will be incorporated
by the submission of draft final report.
GAMD
KRA 4: Budget Control and Oversight
Output 4.1: Increased coverage and quality of the internal audit functions by 2016
4.1.1 Operational plan developed and approved by
June, 2013
Achieved Operation Plan for 5 year 2013 – 2017 approved and
disseminated to all Internal Audit Units.
IAG
4.1.2 Internal Audit manual/guidelines, standards
and quality assurance improvement
programme in line with International
Standards will be in place by June, 2013
Achieved a) The manual was prepared. Consultant is
incorporating comments from stakeholders.
b) Quality assurance and improvement program
procedures (QAIP) manual was prepared,
approved and disseminated.
c) Consultant for preparing Audit Committees
guidelines selected.
d) Manuals for LGAs and MDAs have been
reviewed by consultants (August 2012) to ensure
consistency with the International Practice
Framework (IPPF), training has been provided on
IPPF and inception report was produced for
guidelines on quality assurance. Stakeholders’
consultation conducted.
IAG
4.1.5 Effective IAU and audit committee
established and internal auditors conduct
compliance audit and evaluate effectiveness
of internal control in MDAs and LGAs by
June 2016
On Track a) Data base of internal auditors and members of
audit committees established. Training on
business processes of EPICOR for 38 internal
auditors in MDAs was conducted and 20 internal
auditors undertook professional courses (CIA,
CFE and CPA).
b) To date awareness workshop on roles of internal
IAG
42
auditors for 351 stakeholders (Mayors, Council
Chairpersons and Internal Audit) conducted.
c) Training on roles of internal auditors to 264 audit
committees’ chairpersons conducted.
4.1.6 The Pilot stage of Computerized Audit will be
finalized by June 2014
On track -Procurement of audit software is at tendering stage.
-Training will be conducted after procurement of
audit software
IAG
4.1.7 Computerized Audit in place by June 2016.
Pending IAG
4.1.8 Technical Audits are conducted for 70
Projects by 2016
On track Technical Audits for 8 projects will be conducted in
quarter three of FY 2013/14.
4.1.10 550 internal auditors and other stakeholders
trained in risk management process and risk
based audit by June, 2016.
On track a) 121 stakeholders have been trained on risk based
management process.
b) 138 internal auditors staff from MDAs and LGAs
have been trained in risk based audit.
c) IAGD is underway to hire a consultant to develop
a risk management M&E framework
IAG
Output 4.2: Strengthened External audit functions by 2016
4.2.1 The committee report on needs of legal
amendments (existing laws) to contribute
towards reaching level 3 submitted to the
attorney General and awareness programs
conducted by December 2012
NEW MILESTONE:
Maintain and enhance independence of CAG
by 2016 (Issues related to New Constitution,
AFROSAI-E)
Achieved An AFROSAI-E team elevated NAOT to level 3 of
AFROSAI-E capability model in early 2013. The
ambition is now to move towards level 4. As such, a
report on need to revise the Laws and Policies was
submitted to the Attorney General’s Office for action,
however with the ongoing Constitutional review, the
amendment of various laws will follow after the new
Constitution. NAOT submitted to the Constitutional
Review committee NAOT views on Articles related
to NAOT meanwhile addressing Independence of the
NAOT
43
CAG.
4.2.2 100% of auditors are moved from auditee
premises to NAO offices by 2015
On track Construction of Dodoma and Rukwa on going,
Dodoma (80%), Rukwa (50%). Procurement process
for identification a Consultant to supervise
construction of two office buildings in Iringa and
Mara regions is in final stage.
NAOT
4.2.3 300 Auditors trained on Risk Based Audit
and 200 in IT audit by 2014
On track The milestone will be achieved in the fourth quarter
of FY2013/14 as the plan is to train 300 auditors on
Risk Based Audit and 200 in IT audit.
NAOT
4.2.4 Two Value for Money audit reports to be
produced each year by NAO staff without
technical assistance from external consultant
by 2014.
Achieved More than 5 performance audits p.a. are being carried
out using internal coaching, providing a base to build
on.
NAOT
4.2.5 600 Auditors trained on international
standards of auditing and full adoption of
International Audit Standards by June 2016
Achieved 300 Auditors trained on international standards of
auditing and full adoption of International Audit
Standards.
NAOT
4.2.6 Closing of books of accounts for Parastatals
harmonized and audit modalities agreed by
2014.
On track Forum with 176 CEOs of Public bodies to discuss on
harmonization of closing of books of accounts and
round table with Board of Directors of Parastatals
was conducted. Decision to harmonize closing of
books of accounts needs time and more discussion at
technical level. A follow up will be held on the fourth
quarter of FY 2013/14.
NAOT
4.2.8 Scoping study to ascertain the parameters of
the outstanding matters Database is
completed by November 2012
Delayed The scoping study has been completed. Data for the
outstanding audit recommendations has been
collected, analysis is on- going. The analysis will be
completed in FY 2013/14
NAOT
44
4.2.9 Establish a database that will separate
findings (monetary and non monetary) and
recommendations including by age, and
record follow up actions by December 2013.
On track Creation of data base for tracking outstanding audit
recommendations is ongoing. Data for last two years
has been collected analysis including preparations of
software requirements is ongoing
NAOT
4.2.10 300 Auditors trained on audit commanding
language (ACL) and other audit based
software by 2014
On track 200 Auditors has been trained on ACL. The office
has created a group of IT auditors who eventually
will form IT audit unit.
NAOT
4.2.11 NAO Headquarter is connected to 10
Regional offices using WAN by 2014
Achieved 12 NAOT offices have been connected with WAN
fiber optics, the office is currently using intranet for
internal communication with the help of WAN
NAOT
4.2.12 Two of five Team mate modules applied in
auditing by October 2014
On track The study on Two of five Team Mate module
completed by internal staff. The activation of the
Two of five Team Mate module and elementary
training to 40 team mate champion will be conducted
and completed by June 2014.
N