CORE REFORMS – NOVEMBER 4 TH, 2009 Development Partners Comments

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

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

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

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

Financial Management & eligible expenses Challenges:  Outdated rules and regulations promote an accountability gap  Adherence and responsibilities to GoT rules & regulations in question  Growth in personnel expenses;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

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

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

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

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

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

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

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

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

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

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

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