Planning, Budgeting and Implementation Guidelines for Local Governments for the Education Sector

1. Planning, Budgeting and Implementation Guidelines for Local Governments for the Education Sector MINISTRY OF EDUCATION AND SPORTS

2. STRUCTURE • Background • Structure of grants under Education Sector • Allocation formula and allocation process • Non-Wage Grant • Development Grant • Procurement process • Construction supervision • School level budgeting • Grievance Redress

3. A:BACKGROUND Over the disbursement period of four years, World Bank is expected to disburse Ushs.710bn for Health and Education of which, Ushs.460bn (65%) shall go towards the Education Sector as illustrated in below • The loan shall finance components of Non-Wage Recurrent and Development. • The Non-Wage component will address the low unit cost of funding operations of the schools to improve learning outcomes. • The Transitional Development Grant which has been funding adhoc investments under the Sector such as Presidential Pledges will be included into the main Development Grant and allocation will also be subject to the agreed formula with the World Bank. • Under the Development grant, the loan is supposed to finance the capital development works of secondary schools as directed by cabinet.

4. B: Overall Structure and Purpose of Sector Grants

5. C: Allocation Formula (Non-Wage)

6. Allocation Formula (Development)

7. Process of developing and applying the allocation formulae An annual performance assessment will be conducted for each Local Government and those Votes that score above average (the mean score) in this assessment will receive a larger share of the development grant relative to other Local Governments in the next fiscal year as a reward for effective utilization of the funds.

8. D:NON-WAGE (CAPITATION GRANTS): • UPE has a threshold component of Ushs.1.35million per school per year and a variable of Ushs.8,000 per pupil. • Special Needs Unit Cost includes costs for Vocational Training and Boarding expenses • Capitation grants and inspection take first call on the Non-Wage budget • Capitation grants for UPE in hard to reach areas may be supplemented by a hard-to-reach capitation of up to Ushs 2,000 per learner.

9. Non-Wage (Management and Oversight): • LGs have a statutory responsibility to provide support supervision, monitoring and inspection of education service with the aim to improve learning outcomes and attract more learners to schools. • DEO’s/MEO’s expenses for monitoring of all schools and institutions in the Local Government at least once per year and must be allocated a minimum of a fixed rate of UShs 4.5 million per Local Government, plus UShs 100,000 per school, the level of the former DEO monitoring grant • At a minimum, inspection must be allocated a fixed rate of UShs 4 million per Local Government, plus UShs 336,000 (6 inspections at Ushs 56,000) per school for the 3 terms.LGs are encouraged to make use of the Associate Assessor Model (AAM) to supplement their staff to achieve that 6 inspections are achieved. • After allocations for school capitation and the education management, inspection and monitoring functions could be allocated additional funds, up to 5% (but not exceeding UShs 50 million) of the remaining NWR budget, if any. This may be used to top up management activities under outputs 078401 and 078402. The balance (95%) must be allocated towards outputs 078404 (maintenance), and 078403 (Sports & Co-Curricular Development Services).

10. Non-Wage (Sports, Co-curricular and Maintenance): • Facilitate students to participate in regional or national sports competitions and co-curricular activities. • Monitor and support schools to ensure that school physical education and co-curricular activities are incorporated within the academic program. • The LG is responsible for ensuring schools are maintained according to the minimum condition standards specified by the MoES. • Works that can be considered under this component; • Maintenance work based on priorities identified from condition assessment • Emergency repairs of school infrastructure affected by natural disasters. • Supporting schools to meet pressing/critical furniture needs

11. E: DEVELOPMENT GRANT: The Education Development Budget will be either used for capital investments and capacity development as follows: • At least 85% of development budget will be used for capital investments and investment service costs and, to fund rehabilitation or construction of service delivery and administrative infrastructure. • Up to 10% (but not exceeding UShs 50 million) of the development budget may be used for eligible capacity development for the education department. • Up to 5% (but not exceeding UShs 50 million) is for investment related costs. The following capital investments can be budgeted for in the development budget • Construction of Seed Secondary schools, as captured in Annex 2a of these guidelines, should take first call on the available funds. • Outstanding Presidential Pledges for primary or secondary schools as captured in Annex 2b and the MoES database for presidential pledges should take the second call on the available funds • Construction and rehabilitation of infrastructure and facilities, which are below the national Minimum Quality Standards

12. Development Grant (capacity devt): Capacity building should take place at two levels: • District Education Office Capacity Development– focusing on areas of poor performance as identified in the Annual Performance Assessment • School Performance Improvement– focusing on improvement of the performance of schools measured by exam results and inspection activities. • Courses which may not be undertaken using this component include: • Undergraduate qualifications (degrees, diplomas etc) • Post-graduate qualifications • PhD’s • Training courses that are not relevant to the function of the post of the staff concerned d. Courses which are eligible include: • Short courses e.g. focused on improving the LG’s education management capacity. • Procurement of training equipment, e.g. computers • Capacity building focusing on performance improvement at the school level

13. Development Grant (executing capital investments): Bulk of the consolidated development grant is for construction of Seed Secondary Schools (This stem is not linked to a,b,c) • To guide prioritization of new school constructions, the Ministry shall provide a list of all sub-counties earmarked for construction of Seed Secondary schools • The Ministry shall also provide outstanding Presidential Pledges for primary or secondary schools • New constructions for seed secondary school shall be undertaken in two phases as shown in the table below. But where funds cannot complete a full package I phase 1, classroom blocks, among others should be prioritized.

14. Development Grant (executing capital investments):

15. Development Grant (executing capital investments): Please note that local governments cannot embark on any new school constructions prior to completing all activities in the above two phases, as well as implementing any outstanding presidential pledges.

16. F: PROCUREMENT PROCESS: All procurements must be done in accordance with PPDA Regulations 2014 and guiding criteria provided by MoES. • The Ministry will offer general guidance to the Local Governments on what to prioritise • The Ministry will choose the beneficiary sub county/ school based on a criteria from the Ministry. LGs will prepare/update their procurement plans accordingly. • Ministry shall Cluster various Local Governments into lots who will choose the lead LG • The construction designs and Bills of Quantities will be issued by the MoES • The BoQs should incorporate measures to mitigate social and environment impacts. • The lead LG will approve the bid documents before publication. Bids will be submitted to one agreed upon (lead) Local Government per cluster on behalf of the LGs in the cluster. • The MoES in coordination with the LG will jointly run a procurement notice. • Bids shall be opened publicly on the closing date and all bidders are free to attend. • Evaluation of the bids. Each LG in a cluster shall be represented at the evaluation with approval of the respective Contracts Committees. A joint evaluation shall be undertaken together with representatives from line Ministries. • Award of contracts. Individual contracts committees shall make the contract award decisions since each LG shall be represented at bid evaluation. • Each Accounting Officer should sign a separate contract with the successful contractor for projects to be paid under their votes. • Local Governments will certify and pay the contractor but the Engineering Assistant shall participate in the Certification • Each Accounting Officer shall maintain contract registers and procurement activity files. • Administrative reviews shall be handled by Accounting Officers of Respective Local Governments.

17. G. CONSTRUCTION SUPERVISION: • The LG Accounting Officer shall nominate the Project Manager, who shall be responsible for supervising the site at least at the stages of works considered for payment and issue payment certificates. • The LG Accounting Officer shall also nominate the contract manager (preferably the DEO and/or CDO) whose major role shall be to ensure a smooth implementation of the Project • Construction supervision should, among others, ascertain compliance with the Technical Requirements, Environmental guidelines, Transparency & Accountability and Social Safe guards • In addition to providing support supervision, ministries (MoES, MoFPED, MoLG and President’s Office) shall be responsible for the monitoring & evaluation of construction projects across the country • Specifically, the MoES Engineering Assistant attached to each LG alongside the District/Municipal LG Engineers are responsible for monitoring and evaluating the performance of schools and contractors in implementing construction projects at district / municipality level.

18. H: SCHOOL LEVEL BUDGETING: • Annually, LGs make a budget provision for non-wage recurrent grants that are transferred directly to schools • The purpose of these grants is to fund the operational/running costs of schools in execution of education service delivery. • Each primary or secondary school is required to prepare an annual budget and financial statement capturing funds from all sources to the school and expenditures incurred from those sources. • The Budget and reports should ensure that ; • shows all planned activities and matches expected revenues to planned expenditure for the new financial year. • Shows funds received and expenditures for the previous financial year and actual expenditures and activities. • The Budget and Annual Financial Statement must include funds from (a) the previous financial year which were not spent; (b) the recurrent non-wage grant for the new FY; (c) revenue and expenditure funded by donors directly to schools; and (c) all other sources, if any. This includes donations received from well-wishers both in cash, in kind (values to be imputed) from fundraising efforts etc.. This ensures that there is no duplicate funding for activities in schools by government and the off-budget donors. • The section provides guidance to schools on various eligible Expenditures non-wage grants.

19. I: GRIEVANCE REDRESS: • The grievance redress mechanism (GRM) describes avenues, procedures, steps, roles and responsibilities for managing grievances and resolving disputes. • Every aggrieved person should be able to engage this mechanism to quickly resolve their complaints. • The purpose of the grievance redress mechanism is to: • Provide affected people with avenues for making a complaint or resolving any dispute that may arise during implementation of school activities; • Ensure that appropriate and mutually acceptable corrective actions are identified and implemented to address complaints; • Verify that complainants are satisfied with outcomes of corrective actions; • Avoid the need to resort to judicial (legal court) proceedings unless it is warranted

20. J: OTHER ISSUES: • On-going civil works at the Local Governments: Local Governments are advised to continue implementation of on-going civil works within the SFG budget ceilings of FY 2018/19. All resources over and above this ceiling are for implementation of the IGFTR program. 2) Finalisation of BoQs: MoES will customize all BoQs for sites where Seed Secondary Schools are to be constructed to accommodate the unique aspects that might affect the cost. 3) Harmonization of Investment Service Costs with MoH: This has been done and it was agreed that the ceiling should be put at 5% (not exceeding Ushs.50million) of the Consolidated Development Grant. 4) Irregular Transfer of Teachers from Seed Secondary Schools: This has been a concern and the Ministry has undertaken steps to address the complaints from the Local Governments. However Local Governments should be keen on forged transfer letters

21. OTHER ISSUES (Cont…..): 5) Wrong Placement of Schools The Ministry has received a number of complaints on the placement of schools/institutions in wrong Local Governments which has made payment of both capitation grants and wage a challenge. All Local Governments with such cases should communicate/report to the MoES, MoFPED, MoLG and MoPS for a technical supplementary before 5th October 2018 . 6) Delay in processing of retirement benefits for teachers There are a number of cases of teachers delaying to access retirement benefits. • It was agreed that Local Governments should train potential retirees on how to apply for pension to ensure that their files are in order. • LGs are advised to initiate requests for retirement benefits 6 months to the officers retirement date.

22. OTHER ISSUES (Cont…..): 7) Coding of Community Schools The Ministry has received and continues to receive many requests for grant aiding. Whereas grant aiding is important for improving access to education and signifies the demand for Education Services in an area, it is not budget neutral (subject to availability of wage and operational funds). • In the FY 2018/19, 100 secondary schools were grant aided. The Ministry will continue to engage with the Ministry of Public Service and the Ministry of Finance, Planning and Economic Development on the provision wage and operation requirements for grant aiding. In the event that resources are identified, the Ministry prioritizes community schools in sub counties and parishes without secondary and primary schools.

23. Thank You