Strengthening Core Reforms: Addressing Challenges in Work Planning, Financial Management, Monitoring & Evaluation, and P

1. Core Reforms – November 4th, 2009 Development Partners Comments

2. Focused discussion • Work Planning Process • Financial Management & Eligible Expenses • Monitoring & Evaluation and Reporting for Results • Procurement • Dialogue process including Review Processes • Late Disbursements

3. Workplan Process Challenges: • Need for a more strategic orientation • Need for stronger ownership • Inclusion of recurrent cost in the workplans • Inordinate delays in workplan revisions • Need to plan more effectively and economically • Work plans do not reflect all funding sources • How are the activities re-profiled from one year to the next? • Quality control

4. Workplan Process Impact of challenges: • Delays in workplan approval and disbursements • Lack of information with regards to reform objectives • DPs not confident that GoT guidelines & systems are being applied or are adequate • Questions as the Value for Money of activities • Calculation errors and inaccuracy

5. Workplan Process Best Practices & Proposed way Forward: • A clear vision is defined • Greater focus on reform-oriented activities • Detailed operational narrative to accompany workplans • Agreed and endorsed standards for planning • Workshops, allowances, miscellaneous costs, foreign training, vehicles • More inclusive workplans (basket and non-basket) • More rigorous quality control

6. Financial Management & eligible expenses Challenges: • Outdated rules and regulations promote an accountability gap • Adherence and responsibilities to GoT rules & regulations in question • Growth in personnel expenses; allowances, honoraria, per diems • DPs forced to overly scrutinize work plans to ensure legitimate expense allocation • CR Units face Financial management human resources constraint • Weak reporting: late, low accuracy & information gaps

7. Financial Management & eligible expenses Impact of Challenges: • Audit queries (both in TZ and DPs headquarters) • Delays in approving reports • Subsequently delays in approving further disbursements • Reputational risk and increase of frustration towards core reform agenda

8. Financial Management & eligible expenses Best Practices & Proposed way Forward: • Design and approve Financial Management Guidelines for all Core Reforms • Revision of GoT rules and regulations • Joint agreement on personnel remuneration with improved regulation and scrutiny • Improvement of audit function • Increased resources and capacity for FM in MDAs • Better predictability in Donor funding and harmonised procedures in reporting requirements

9. Monitoring & Evaluation and Reporting for Results Challenges: • Institutional arrangements and incentive structures not focused on results • Planning and reporting tools are oriented towards input/output instead of towards outcome/impact • Limited knowledge and experience on how to set up M & E systems, reluctancy towards TA • Reliable data not available in many areas e.g. gender disaggregated data

10. Monitoring & Evaluation and Reporting for Results Impact of Challenges: • Core reform management is lacking data to redirect interventions for more effective reform implementation • Weak linkages between strategic plans, resource allocation and results • Displaced priorities and focus in reform implementation • Lack of knowledge for planning • Misdirected Dialogue between GoT & DPs • Broad participation in the monitoring processes endangered

11. Monitoring & Evaluation and Reporting for Results Best Practices & Proposed Way Forward: • Some experiences gained (LSRP, BEST, NACSAP) • Technical Assistance needed? • A systematic approach to review expected results in plans in relation to achieved results and to recommend interventions to improve reform implementation. • Broaden the Dialogue on outcome and impact of core reforms with various stakeholders

12. Procurement Challenges: • High dependence of reform programs on procurement of intellectual services • Lack of procurement staff/expertise and lack of communication to improve the process • Lack of project management skills • Negative incentives for results caused by sitting and statutory allowances • Lack of vertical accountability on results to counteract mis-incentives and vested interests

13. Procurement Impact Challenges: • Delays in implementation • Cost effectiveness compromised • Complaints and court cases over mis-procurement, possibly leading to extra cost for government • Focus on process versus substance/impact • Loss of reform ownership • High operational costs

14. Procurement Best Practices & Way Forward: • Engage decision makers in the process • On the job training on procurement and project management • Improved transparency and communication throughout the stages of procurement • Accountability to time bound results • Penalise members of procurement committees/evaluation committees for slow/bad delivery of procurement

15. Dialogue Challenges: • Key forums for dialogue not timed in conjunction with other planning & budgeting processes • Differing perceptions of the rational/purpose of dialogue • Decisions making leadership absent • Inadequate sharing if information and lack of preparation inhibits high quality dialogue

16. Dialogue Impact Challenges: • Ineffective dialogue • Reporting is constrained • Disbursement difficulties due to inadequate reporting on spending and results • Problem solving delayed

17. Dialogue Best Practices & Way Forward: • Agreement on meeting frequency and held to account • Documentation submission with adequate time for review • Clear agreement on representation • Clear evidenced follow through on agreed actions