1. Public Discussion, 24th of June, 2010 in Ndola, Savoy Hotel “Public Finance Management in Local Government (Use of Public Funds in Councils)?”.

2. Public Discussion, 24th of June, 2010 in Ndola, Savoy Hotel Presentation by German Development Cooperation 24.06.2010 SDI Capacity Development Alignment with National Aims: This involves identifying development problems, designing solutions and successfully testing and implementing these. The stakeholders combine and coordinate political will, interests, knowledge, values and financial resources in order to achieve their own development goals. DIP Component National Level Institutional and Human Resource CD Legal and Regulatory Framework Local Development Planning and Budgeting Financial Management and Accounting Sensitisation And Civic Education Service Provision and Sector Devolution Fiscal Decentralisation and Revenue Mobilisation Sub- National Level DS to conduct Sensitisation and Civic Education Planning and Budgeting Act Amendme nt of the Rating Act GVD and DS in MLGH and Budget Office in MoFNP develop necessary HR CD Assistance to Training Institutes Implementati on at District Level Guidelines for MTEF/ABB and Rolling Out Integrated Development Plans Implementati on of MTEF/ABB at District Level Finance and Audit Manual Software LAMIS Implementati on at District Level Formula Based Grant System Amendment of the Rating Act Revenue Enhancement Strategy DS develops Sector Devolution Plans Service Delivery Manageme nt of Service Delivery Coordinatio n thru Sector Advisory Group, JTWGs TWGs Programme Management E&M

3. Public Discussion, 24th of June, 2010 in Ndola, Savoy Hotel Presentation by German Development Cooperation 24.06.2010 SDI Capacity Development: Up scaling Development and testing of Manuals/ Best Practices: e.g. Financial Management, Audit Service delivery Medium Term Expenditure Framework, Activity Based Budgeting Stakeholder Participation Focal Councils Selection, Preparation of Documentation Design of roll-out process Training of trainers Update of curricula and training courses of Chalimbana Local Government Training Institute and other Institutions Involvement of other Partners MLGH and MoFNP Training of relevant council staff Institutionalization of manuals/ best practices into work processes Dissemination (Knowledge database and direct assistance) All 73 councils nationwide Sub-sector goal: The Zambian government uses harmonized strategies and tested concepts for improved service delivery at sub-national level for the successful implementation of the National Decentralization Policy Needs assessment together with Councils, Province Administration, MLGH and MoFNP

4. Public Discussion, 24th of June, 2010 in Ndola, Savoy Hotel Presentation by German Development Cooperation 24.06.2010 Challenges Debt situation in councils serious Indirect and untimely grant transfers to councils Accountability and transparency – lack of downward accountability Lack of transparency has its impact on the revenue generation e.g. Budget of Ndola City Council of 2009 around 38 billion Kwacha, Collection 2009 29 billion Kwacha Service Provision around 8.5 billion Kwacha in 2009 Main revenue source for Ndola are Rates (22 billion Budget, 14.5 billion Actual) Overall funding system is not in balance Poor linkage between expenditure and revenue assignments Major tax assignments and revenues withdrawn from local councils (over past 20 years) Persistent lack of autonomy of councils to improve on the own source revenues Decisions impacting on LG expenditure without sufficient compensation

5. Public Discussion, 24th of June, 2010 in Ndola, Savoy Hotel Presentation by German Development Cooperation 24.06.2010 How can we improve the Use of Public Funds in Councils? Important Requirements (a) empower local communities by devolving decision making, function and resources from the Centre to the lowest level with matching resources in order to improve efficiency and effectiveness in the delivery of services; (b) design and implement a mechanism to ensure a "bottom up" flow of integrated development planning and budgeting from the District to the Central Government; (c) enhance local political and administrative authority in order to effectively and efficiently deliver services; (d) promote accountability and transparency in the management and utilisation of resources; (e) develop the capacity of Local Authorities and communities in development planning, financing, co-ordinating and managing the delivery of services in their areas; (f) build capacity for development and maintenance of infrastructure at local level; (g) introduce an integrated budget for district development and management; and (h) provide a legal and institutional framework to promote autonomy in decision making at local level.