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Introduction to PEPFAR Expenditure Reporting
Erin Dunlap, USAIDASAP Webinar
March 26, 2020
AgendaIntroduction to PEPFAR
Expenditure Reporting (ER)
Budget Formulation
ER Classification
ER Data Use
Submission Process
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PEPFAR’s 3 Guiding Pillars
Active Program and Partner Management
Delivering an AIDS-Free Generation with Sustainable Results
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PEPFAR Data SourcesPEPFAR uses a variety of data inputs in its program planning:
1. MER (Monitoring, Evaluation and Reporting)
2. SIMS (Site Improvement Through Monitoring System)
3. Expenditure Analysis (Now Expenditure Reporting)
4. SID (Sustainability Index Dashboard)
This gives us the clearest picture of the epidemic, as well as allows PEFPAR teams to respond in close to real time to issues in country.
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Partner “Spend”The Difference Between Outlays & Expenditure Data
“Spend” via Outlay “Spend” via Expenditure Reporting
Perspective USG Agencies Partners
Accounting Methodology
Reflects disbursement of money from USG to implementing partners.Depending on type of agreement, this can be before or after an activity is implemented.
Actual expenditures by partners using cash basis of accounting
Level of Detail IM by agency. No budget code level disaggregation.
IM: Program Area x Beneficiary x Cost CateogrySubrecipient: Program Area x Beneficiary
Timeliness Quarterly Annual
Funding Inclusion
OU Reports include COP Only COP + select central funds/initiatives that contribute to site level targets (e.g. DREAMS, VMMC, Contraceptive Fund, etc.)
USG M&O Included Excluded
Relationship to Programmatic Results/Targets
Not directly tied to results or targets. Directly relatable as long as they can be mapped to MER indicators.
Allows for ability to triangulate investment across populations with achievement within those populations.
**USG outlays ≠IP expenditures
Introduction to ER
Increase reliability, usability, and timeliness of financial data to achieve program impact
Build upon PEPFAR’s pillars of transparency, accountability, and impact
Clarify linkages between COP/ROP (Country Operational Plan/Regional Operational Plan) and central funding budgets, program implementation, budget execution and financial management and reporting
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Integrated COP Budgeting and Expenditure Reporting Alignment
COP Budget(FAST Budgeting Tool) Work Plan Budget Annual Expenditure
Reporting
COP 17/ FY 2018 $
COP 18 / FY 2019 Optional $
COP 19 / FY 2020 $ Optional $
COP 20 / FY 2021 $ $ $
Introducing a Harmonized Classification Structure for PEPFAR planning and reporting processes
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Process Flow of Annual Financial Planning and Reporting
COP Strategy and Budget• Determine full year
amount for each mechanism
• Determine funding level for interventions --Program Area and Beneficiaries
Work Plan Budget • IM interventions further
elaborated by Cost Category
Expenditure Reporting• Expenditures reported
against the interventions identified in the work plan budget
Track financial information from budgeting to work plan budget to expenditure reporting using same classification
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Expenditure Reporting Classification System
Part II
ER Methodology Basics• Cash basis, not accrual basis of accounting for reporting
• Only report on USAID/PEPFAR funding-do not include other donor funding or other USAID $$$ spent
• Reported to USG annually by each Implementing Mechanism (IM) in USD to capture all spend from the past USG fiscal year • Upcoming ER20= FY20 USAID/PEPFAR spend from Oct. 1, 2019-Sept. 30, 2020
• Reported at country/OU (Operating Unit) level• Expenditures are not reported by districts or sites
• **Prime partner responsible for reporting all subrecipient funding in one template
• Classification exclusive and comprehensive, no dollar is double counted
**Subject to change for FY20 reporting, stay tuned for more updates! 10
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Putting it Together: How are your IMs funded?
Program Area Beneficiary Intervention
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Classifications Scheme
Goal: To have common classifications across both budgeting and expenditure reporting that will answer the following questions:
1. Organization: Who is spending the money?2. Program: What is the purpose?3. Beneficiary: Who benefits?4. Cost Category: What was purchased?
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Expenditure Reporting Template: Program Area
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Classification: Program AreaProgram: Distinct organization of resources directed toward a specific strategic objective, or, alternatively, a set of activities that achieve a common outcome.
Site Level vs Above Site Level
Above Site Level
Activities that support the broader program or the health system,
including program management, strategic information, surveillance and health systems strengthening
Site LevelActivities that occur at the point of service delivery or facility level, and
are categorized by the implementation of prevention and
treatment activities in specific communities or facilities
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Site-Level Programs: Service vs. Non-Service Delivery• Service Delivery: Direct interaction with beneficiaries
Examples:• Implementing differentiated service delivery models• Linking and referral to treatment services
• Non-Service Delivery: No direct interaction with beneficiary, although money is spent at the site level
Examples: • Technical Assistance and training to site level staff for the
strengthening of HIV services• Provision of data clerks to sites responsible for the completeness and
quality of patient records• Monitoring and Supervision
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Program Area Example: Care & Treatment
Program Area Subprogram Area
Care and treatment
HIV clinical services – Service delivery
HIV clinical services – Non-service delivery
HIV laboratory services – Service delivery
HIV laboratory services – Non-service delivery
HIV drugs – Service delivery
HIV drugs – Non-service delivery
Care and treatment: Not Disaggregated – Service delivery
Care and treatment: Not Disaggregated – Non-service delivery
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Program Area Example: Care & TreatmentProgram Area Subprogram Area
Testing
Facility-based testing – Service delivery
Facility-based testing – Non-service delivery
Community-based testing – Service delivery
Community-based testing – Non-service delivery
Testing: Not Disaggregated – Service delivery
Testing: Not Disaggregated – Non-service delivery
Program Area Subprogram Area
Prevention
Community mobilization, behavior and norms change – Service delivery
Community mobilization, behavior and norms change – Non-service delivery
VMMC – Service delivery
VMMC – Non-service delivery
PrEP – Service delivery
PrEP – Non-service delivery
Condom and lubricant programming – Service delivery
Condom and lubricant programming – Non-service delivery
Opioid substitution therapy – Service delivery
Opioid substitution therapy – Non-service delivery
Prevention: Not Disaggregated – Service delivery
Prevention: Not Disaggregated – Non-service delivery
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Program Area Example: Care & TreatmentProgram Area Subprogram Area
Socio-economic
Case management – Service delivery
Case management – Non-service delivery
Economic strengthening – Service delivery
Economic strengthening – Non-service delivery
Education assistance – Service delivery
Education assistance – Non-service delivery
Psychosocial support – Service delivery
Psychosocial support – Non-service delivery
Legal, human rights and protection – Service delivery
Legal, human rights and protection – Non-service delivery
Socio-economic: Not Disaggregated – Service delivery
Socio-economic: Not Disaggregated – Non-service delivery
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Above-Site Programs• All Above-Site programs = non-service delivery• Usually paired with “Non-Targeted Population” beneficiary class,
but not always
Program Area Subprogram Area
Above-site Programs
Procurement and supply chain management
Health management information systems, surveillance, and research
Human resources for health
Laboratory system strengthening
Institutional prevention
Public financial management strengthening
Policy, planning, coordination and management of disease control programs
Assessing laws, regulations and policy environment
Above Site: Not Disaggregated
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Program: Program Management
• Required reporting• Program Management will be used for:
• Implementing Mechanism management and overhead costs
• Implementing Partner indirect costs• Always associated with non-targeted population
beneficiaryProgram Area Subprogram Area
Program Management Program management
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ER Template: Beneficiary
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Who is a Beneficiary?• Beneficiary: Intended recipient of PEPFAR program
• May belong to more than 1 category
• Related to program outcome, not input
• Targeted during the COP budgeting process by USAID
• Monitoring, Evaluation, and Results (MER) data will include more disaggregated beneficiary information
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Classification: Beneficiary
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Demographic Beneficiary GroupsBeneficiary Sub-Beneficiary Details
Non-targeted
population
Adults 25+ years old
Young people and adolescents 15-24 years old
Children <15 years old
Non-targeted populations: Non Disaggregated Spending is intended to target more than one sub-beneficiary group of non-targeted population
Females
Adult women 25+ years old
Young women and adolescent females 15-24 years old
Girls <15 years old
Females: Not Disaggregated Spending is intended to target more than one sub-beneficiary group of females
Males
Adult men 25+ years old
Young men and adolescent males 15-24 years old
Boys <15 years old
Males: Not Disaggregated Spending is intended to target more than one sub-beneficiary group of males
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Demographic Beneficiary GroupsBeneficiary Sub Beneficiary Details
Key populations
Men having sex with men
Transgender
Sex workers
People who inject drugs
Key populations: Not Disaggregated Spending is intended to target more than one sub beneficiary group of key populations
Pregnant and breastfeeding women Pregnant and breastfeeding women
Priority populations
People in prisons
Military and other uniformed services
Mobile populations Farm workers, miners, migrant workers, truck and commercial drivers
Displaced persons Refugees and internally displaced
Clients of sex workers
Priority populations: Not Disaggregated Spending is intended to target more than one sub beneficiary group of priority populations
Orphans and vulnerable children
Orphans and vulnerable children
OVC care givers
OVC and care givers: not disaggregated Spending is intended to target both sub beneficiary groups of OVC
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Putting it Together: How are your IMs funded?
Program Area Beneficiary Intervention
Intervention ExamplesIntervention 1 Intervention 2 Intervention 3 Intervention 4
Program Area Testing Socio-economic Care & Treatment Above-site
Subprogram
Area
Community-
based – Service
delivery
Education
assistance –
Service delivery
HIV clinical
services – Non-
service delivery
HMIS,
surveillance and
research
Beneficiary
GroupKey Pops OVC Non-targeted Non-targeted
Sub -
Beneficiary
Group
Sex WorkersOVC
Not
disaggregated
Not
disaggregated
Inte
rven
tions
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• USAID takes varying approaches to selecting interventions
• “Split” interventions to highlight breadth and depth of programmatic activities
• “Lump” interventions to demonstrate a more cohesive picture
Maximum 20 interventions (including one for program
management) can be entered on the template
No way to disaggregate in every possible way,
especially for comprehensive IMs
Level of Detail
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ER Template: Cost Category
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Classifications: Cost Category
• Object: What is the Implementing Partner purchasing with their PEPFAR money?
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Classifications: Cost Category• Object: What is the Implementing Partner purchasing
with their PEPFAR money?Object Sub objects Details
Personnel
Salaries, wages –health care workers
MDs, RNs, Pharmacists, Lab technicians, and Social workers who provide clinical services directly to beneficiaries
Salaries, wages – other staff
Technical advisors (potentially MDs, RNs, etc.), data capturers, lay workers, community health workers, and other support personnel; includes salary for trainers
Fringe Benefits
Fringe BenefitsDirect costs of employee fringe benefits
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Classifications: Cost Category• Object: What is the Implementing Partner purchasing
with their PEPFAR money?Object Sub objects Details
Travel
International TravelTransport by IP personnel outside of or to/from the country of implementation
Domestic TravelTransport by IP personnel within the country of implementation
EquipmentHealth equipment
Equipment used for surgical procedures, diagnosis, or disease prevention >$5,000
Non-health equipment All other equipment >$5,000
Supplies
Pharmaceutical Drugs
Health product – non pharmaceuticalMedical supplies, VMMC kits, RTKs, lab reagents, condoms, etc. <$5,000
Other suppliesAll other supplies <$5,000 including in-kind goods to beneficiaries
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Classifications: Cost CategoryObject: What is the Implementing Partner purchasing with their PEPFAR money?
Object Sub objects Details
Contractual
Contracted health care workers
Health care workers contracted to provide services; not IP employees
Contracted interventionsNot named in award document(s) and is NOTsubject to federal regulations of the prime IP
Other contractsAdministrative and management services, continuous charges (i.e. rent, utilities, insurance)
Construction ConstructionConstruction and renovation, including project management fees
Training TrainingTraining, conferences, meetings, including venue, participant transport per diem, contracted trainers
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Classifications: Cost Category• Object: What is the Implementing Partner purchasing
with their PEPFAR money?Object Sub objects Details
Subrecipient SubrecipientNamed in award document(s) and subject to the same federal regulations as the prime IP (FAR, CFR, etc.)
Other
Financial support for beneficiaries
Cash, cash incentives, cash paid for patient travel to clinic, or microloans
OtherOther direct costs that do not fit aforementioned categories
Indirect Indirect
Costs to support the overall operation of the Implementing Partner—both administrative and programmatic (e.g. NICRA)
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Template Completion and Submission
Part III
ER Process Timelines for FY20 Reporting
Timeline: FY 2020 Expenditure Reporting Data Entry
Date Task
Around Sept 14 • FY20 ER Guidance and templates released
October 1 • FY20 expenditure reporting data entry opens in DATIM (online system)
November 6 • IPs upload and submit expenditure reporting templates in DATIM
November 13 • FY20 ER DATIM data entry closes; all templates submitted by IPs and approved by Agency field staff
November 25 • ER visualizations and structured dataset available in Panorama
December 1 • DATIM open for IP cleaning and re-upload of FY20 IM expenditures
December 11 • FY20 ER data cleaning import deadline; all cleaned expenditure reporting templates submitted by IPs and approved by Agency field staff
December 18 • FY20 ER data cleaning period closes
Beginning of January • ER visualizations and structured dataset available in Panorama
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Template Completion
USAID A/CORs and Activity Managers will inform IPs of top-line budgets by intervention after the annual COP budgeting process ends
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Template CompletionUSAID IPs will complete the budget by intervention with cost category and subrecipientdetail during the annual Expenditure Reporting & the annual workplanprocess
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DATIM Interagency Workflow
• DATIM is a system that is used by the broader PEPFAR intragency space to store, enter, and analyze data from various data streams within PEPFAR (i.e. MER, SIMS)
• In September you will request ER DATIM accounts to gain access to the system and upload/submit your ER template.
Technical Assistance Available to USAID IPs & Mission Staff
• Each OU USAID team will have a HQ-based and field-based technical support the ER process:
• USAID/HQ Costing Advisors: Provide oversight and high-level technical assistance, particularly around expenditure classification, data analysis and use
• Field-based USAID A/CORs and Activity Managers: Provide guidance on allocation as the IM expert in that country
• Field-based Technical Assistance Consultants: Support implementation of data reporting and cleaning and provide support to USAID field staff and IPs
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Data Use
Part IV
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What is the Purpose of the Spend?Are we focusing our resources on the right strategies to reach our targets?
IPs that operate where there is better treatment and testing coverage might have expenditures that reflect this point of epidemic control (i.e. greater spend in Non-Service than Service Delivery?
Other OUs may be in “Surge” mode and reflect this point of epidemic control (i.e. greater spend in Service than Non-Service Delivery?
• “Females: Young Women & Adolescent Females” (DREAMS) and “Males: Adult Men” are priority PEPFAR populations
• Very small portion of total FY 19 USAID spend attributed to these two beneficiary groups
• Almost half of total spend attributed to “Non-Targeted Population, Not Disaggregated” beneficiary group
• Highlights need to analyze expenditures alongside MER fine age and sex disaggregates
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Who are we Serving?Are we focusing our resources on the right populations to reach epidemic control?
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How are We Spending Our Resources?
• Are we spending our resources on the right things to meet our program goals/targets?
• How should we potentially shift investments in the next fiscal year to achieve greater program success?
• Purpose• Highlight any mechanism “over”
or “under” spend• Ask
• Is our mechanism prudently spending our budget (generally +/- 10% of budget)?
• Has our mechanism become more fiscally responsible over time?
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Budget vs ExpenditureHow does our spend compare to budget?
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ER Data Use for Budgeting • USG Mission teams have already begun to use this new approach to
budgeting by intervention (program area + beneficiary)• Work planning will occur after COPs are finalized and be in the same
format with an additional disaggregation by cost category• By FY20 all IMs will have an alignment between budgets vs
expenditures by intervention
Snapshot of USG Budgeting Tool (FAST):
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Next Steps & ER Resources
Part V
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• Reach out to your USAID A/COR/AM now to review your COP 2019 budget by intervention and begin tracking spend against interventions
• Think about what your organization can do now/monthly/quarterly?
• Familiarize yourself with the FY19 Resources: ER template and PEPFAR Financial Classifications Reference Guide found on www.datim.zendesk.com
Next Steps to Prepare for FY20 Expenditure Reporting…
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ER Resources
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Questions or Comments?