Multi-Tier Government Synchronization (MTGS)

1. Multi-Tier Government Synchronization (MTGS) Accountability in sub-national fiscal transfers

2. Agenda • Expanding the governance agenda • Sub-National Fiscal Transfers Challenges • Barriers to Implementation • Solutions ? • Closing

3. PFM and Service Delivery Increasing effectiveness and good governance

4. Public Service Delivery National Government Provincial / State Local Government

5. Global Monitoring Report - 2006 • Sustainability • “Checks and balances institutions are important for the sustainability of effective governance… and (includes) accountable local governments.” • Scaling up aid: Moving the agenda forward • “Governance is a critical part of this agenda.” • “transparent budget, administrative (systems) … are key to a well functioning governance system – and provide a straight forward basis for support (from donors).”

6. Public Service Delivery Budget National Government Provincial / State Local Government

7. $ $ $ FA FA FA FA FA FA FA FA FA $ $ $ $ $ $ $ $ $ FA FA FA Fiscal Flows Central Government Provinces Provinces Provinces Cities Cities Cities Cities Cities Cities Cities Cities Cities

8. Sub-National Fiscal Transfer Challenges

9. One size ? • Accountability, Transparency and Timeliness • Public Administration • Policies and Procedures • Financial Management • HR • ICT

10. Accountability Transparency Timeliness Budget National Government Provincial / State Local Government Public Administration

11. Policies and Procedures • Clear rules on assignment, delegation, devolution, authority and responsibility • Financial Management practices • Processes applicable at a central level may need to be more flexible at lower tiers • Capacity differences • Flexibility to streamline based on efficiencies

12. HR • Does fiscal decentralization also includes personnel • Remuneration, retention and meritocracy • Capacity and sustainability a significant challenge • Variability in capabilities across functional sectors and geographic/demographic regions

13. One Version – Standard policies, procedures and controls Districts States Provinces States Ver 3 Version 2 Version 1 Version 2 Version 2 Version 2 Version 4 Version 4 Districts Districts Districts Districts Districts Local Government Local Government Local Government Local Government Communes Communes Communes Communes Communes Communes Communes Communes Communes Communes ICT IFMIS IFMIS IFMIS IFMIS IFMIS IFMIS Districts Local

14. Barriers to Implementation Complexity and the Competition for scarce resources

15. Competition Capacity and Sustainability

16. Leverage Custom Capacity Complexity $ Time

17. Approaches?

18. Major Thematic Drivers • Stand-alone installation capability • Configurable business rules per implementation • Standardized information flow • To Provinces / Central Government • From Central Government/Provinces to Local Government • Multiple capacity versions with growth

19. Stand-alone but configurable

20. COA COA COA Bi-directional fiscal flows

21. Full IFMIS ... but constrained

22. Success Factors … some highlights • Technical • Ability to operate in mixed ICT environments • Designed for multiple scenarios • Functional • Product designed only for governments • Integrated fiscal, budgeting and commitment capabilities • Product designed based on switches

23. Success Factors (continue) • Services • Personnel with extensive government specific experience • Builds on prior successful implementations • Capacity • Designed for mixed capacity • Training is government specific. Order of magnitude in absorption rates. • Retention less an issue because of government only solution

24. Leverage Custom Capacity Complexity $ Time

25. Closing thoughts • Complexity • Capacity • Sustainability

26. Thank you!