FCS Fragile and Conflict Affected States PKI Private Key Infrastructure FM Financial Management RPO Recovery Point Objective FR Financial Regulations RTO Recovery Time Objective GoSL Government of Somaliland SBD Standards Bidding Documents GRS Grievance Redress Service SCoA Standard Chart of Accounts HLACF High Aid Coordination Forum SLA Service Level Agreement HRM Human Resource Management SL-FMIS Somaliland Financial Management Information System HS Codes Harmonized System SMEs Subject Matter Experts HWA Hargesia Water Agency TA Technical Assistance IATI International Aid Transparency Initiative TIN Taxpayers Identification Numbers IBRD International Bank for Reconstruction and Development TOR Terms of Reference ICB International Competitive Bidding ToT Training-of-Trainers ICBF Institutional Capacity Building Framework TPPA Third Party Procurement Agents ICT Information and Communication Technology TSA Treasury Single Account IDA International Development Association TSC Technical Steering Committee IEC Information, Education and Communication TTL Task Team Leader IFAC International Federation of Accountants TWG Technical Working Groups IFRS International Financial Reporting Standards UAT User Acceptance Testing IMF International Monetary Fund UNCITRAL United Nations Commission on International Trade Law INTOSAI International Organization of Supreme Audit Institutions UNCITRAL United Nations Commission on International Trade Law IPFM International Public Financial Management UNCTAD United Nations Conference on Trade and Development IPPF International Professional Practices Framework UNCTAD United Nations Conference on Trade and Development IPSAS International Public Sector Accounting Standards UNDP United Nations Development Programme IPSASB International Public Sector Accounting Standards Board UNDP United Nations Development Programme IR Intermediate Result UNDSS United Nations Department for Safety and Security ISN Interim Strategy Note UNOPS United Nations Office for Projects Services
ANNEXES Annex 1: Results Framework and Monitoring SOMALIA: Second Public Financial Management Capacity Strengthening Project (P151492) The Project Development Objective (PDO) is to establish and strengthen institutional capacity for the management of public funds in central finance agencies and targeted sectors. PDO Level Results Indicators* Core Unit of Measure Baseline Target Values Frequency Data Source/ Methodology Responsibility for Data Collection Description (indicator definition etc.) 2016 2017 2018 Indicator One Reduced variance between actual primary expenditure and the originally budgeted primary expenditure. % 45 FG: 40 PL: 50 45 FG: 40 PL: 50 35 FG: 30 PL: 40 25 FG: 20 PL: 30 Annually FMIS and published budget documents and Annual Financial Statements Accountant General’s Department Aggregate fiscal discipline Indicator Two Time elapsed (in months) between end of period covered and submission of audit reports to the legislature. Months 12 12 9 6 Annually Auditor General’s Report to Parliament Office of Auditor General Transparency for the use of public finds Indicator Three Increase in real terms of domestic revenue collection. Amount (US$ million) 95 FG: 96 PL: 0.72 120 FG: 120 PL: 1 144 FG: 144 PL: 1.3 172 FG: 172 PL: 1.5 Annually Annual Financial Statements Tax Department Resource mobilization INTERMEDIATE RESULTS Intermediate Result (Component One): Revenue mobilization, planning and budget preparation Improved realism of the budget and fiscal discipline.
application of International Public Sector Accounting Standards (IPSAS) – cash basis. arrears; and cash flow statement Intermediate Result indicator Percentage of contracts competitive procurement methods. % 0 20 30 60 Annually Transparency, competition and complaints mechanisms in procurement MoF (Tender Board) Public confidence in transparency of procurement processes and systems Intermediate Result Indicator Four Procurement, installation and commissioning of core banking and accounting systems with an basic payment system. - Text Banking operations manual with no written procedures and incomplete reports. Regional payment system Gathering functional and technical for core banking system and of services for supply and Installation, and stabilization of core banking and accounting solution including the ICT infrastructure Basic payment system operational Annually Central bank project management reports Central bank Public confidence in transparency & accountability of central bank Intermediate Result (Component Strengthening the integrity pillars Strengthened key integrity pillars to hold government accountable for the use of public funds. Intermediate Result indicator One Percentage of expenditures represented by the government entities audited in total public expenditure. % 0 50 60 75 Annually External Audit reports Office of Auditor General Independent oversight and accountability for use of public funds
Intermediate Result indicator Two Percentage of audit recommendations for which there is evidence of % 0 10 20 40 Annually External Audit reports External Audit reports Fiduciary Assurance Intermediate Result (Component Four): PFM Professionalization Number of PFM accredited staff Intermediate Result indicator One Number of students completing certificate and diploma stages. Number (persons) 0 10 Certificates FG - 5 PL - 5 SL - NA 20 Certificates FG - 5 PL - 7 SL - 8 20 Diplomas FG - 5 PL - 7 SL - 8 Plus 10 ITC-ILO diplomas Annually PFM Academy PFM Academy in participating universities records PFM Academy in participating universities PFM knowledge, skills and competencies Intermediate Result (Component Six): Demand-driven Just-in-time services (Bank Executed) Demand-driven Just-in-time Services (Bank Executed). Intermediate Result indicator One Number of PFM reviews and actionable advisory notes. Number - 1 1 1 Annually PEFA Framework/ Fiscal ROSC Customs Assessment Trade Toolkit (CATT) PETS Bank Task Team Just-in-time analysis and advice
Figure 6: PFM Reform Governance Framework The project administration mechanisms are explained in the governance framework in the Table 3 below. Table 3: Roles and Responsibilities for the PFM Reforms Governance Framework Institutions Strategic orientation / Roles and responsibilities Composition SDRF Steering Committee The SDRF Steering Committee plenary session will provide joint oversight (donor and government) of the strategic direction, implementation, and results of the SDRF windows, including the MPF. At the plenary level, the SDRF Steering Committee will have no role in the approval or review of individual MPF grants. Decisions will be on a consensus basis. With a broader set of stakeholders, the Steering Committee in its plenary format will provide a platform for policy dialogue between the FGS and the international community. Membership of the Steering Committee will include line ministries, donors, window administrators (the WB, AfDB, UN, Norway/SFF). Observers from civil society and the private sector. Presidency or Office of Prime Minister PFM (ROC) The PFM ROC will provide updates at the SDRF Steering Committee plenary meetings The ROC will be aligned with the PSG5-WG structure Sets the political tone for the broad governance reform agenda and manage resistance. Address linkages with wider aid management issues and impact on overall development agenda. Manage relationships with development partners and the international community Using institutional convening power; guides and presents PFM issues at cabinet level, the highest decision making organ in Government to get Chair: Prime Minister (for Federal Government) and Office of the President (for Puntland) Heads of the various PFM institutions. Governor of Central Bank of Somalia Minister of Planning chairpersons of Parliamentary Committees on Planning, Budget, Finance and oversight. Chamber of Commerce Representative of Non-state actors PSG 5 PFM Working Group chair and co-chair
the political support required to drive the PFM reform agenda. The ROC shall meet at least quarterly to evaluate progress of the reforms. Commitment of human and financial resources and approve Annual Work Plans (AWP) to underpin the reform budget and provide framework for monitoring of the reform activities. Ministry of Finance (TSC) The TSC will be responsible for providing technical guidance for meeting the platform objectives and ensuring cohesion and coordination of the various components. Reviews and endorses component AWPs and budgets. The TSC shall meet at least monthly to evaluate progress of the reforms. Project Task Team will hold meeting with Government TSC in Mogadishu, Garowe and Hargeisa at least quarterly (on separate dates). The TSC will be aligned with the PSG PFM-SWG structure Will provide progress reports to the SDRF Operations Sub-Committee Minister of Finance Heads of the various PFM institutions and line ministries representing key front-line service delivery. Director of Banking, Central Bank Project Coordinators from FGS, PL and SL Project Task Team Leader PSG 5 PFM Working Group chair and co-chair Public Financial Management Reform Coordinating Unit (PFMRCU) Component Implementation Teams (CIT) Responsible for day-to-day coordination of the reform activities and serve as key interlocutors to consultants in ensuring proper sequencing of activities. Director General Ministry of Finance and Planning will provide strategic guidance The CITs shall meet at least weekly to review work packages. Prepares component AWPs and budgets. CIT Chairs: To be determined depending on functional aspects of the component. Subject Matter Experts from various departments Technical Assistants (TA) - mix of individual consultants and/or firms Co-opted PSG 5 PFM Working Group Subject Matter Experts (SME)
4 NCB (Goods and non-consulting services) 500,000 Less than 5 Shopping (Works) 300,000 Equivalent or less 6 Shopping (Goods and non-consulting services) 100,000 Equivalent or less 7 Direct Contracting Any value 8 UN Agencies Any value Table 8: Prior Review Thresholds for Goods and Non-consulting Services Procurement Method Prior Review Threshold(US$) Comment 1 ICB works and services) All contracts 2 NCB and non-consulting Services) 500,000 Equivalent or more (The NCB under each category will be under prior review) 3 NCB 5,000,000 Equivalent or More (The first NCB will be under prior review) 4 Direct Contracting (Goods, works and non-consulting services) All contracts 5 UN Agencies All contracts 6 Shopping (Goods and Works and non-consultancy services) None (See comment) The First shopping under each category will be under prior review. Table 9: Selection Methods and Thresholds for Consultants Selection Method Threshold(US$) Comment 1 QCBS, QBS, FBS and LCS Any value Selection method shall depend on nature and complexity of assignment. 2 CQS 300,000 Equivalent or less generally, however, may be permitted for higher value in appropriate cases as identified in Procurement Plan. 3 Individual Consultant Any value 4 SSS (for individual/ firm) Any value 10: Prior Review Threshold for Consultants Selection Method Threshold(US$) Comment
The following skills mix is required for implementation support: Skills Needed Number of Staff Weeks Number of Trips Comments Winston Percy Onipede Cole Sr. Financial Management Specialist (Task Team Leader, 12 Weeks/year 6/year Nairobi based Thilasoni Benjamin Musuku Sr. Financial Sector Specialist 4 Weeks/year 4/year Washington based Stephen Mugendi Mukaindo Counsel 1 Staff Week/year 1/year Nairobi based Adenike Sherifat Oyeyiola Sr. Financial Management Specialist (GGODR) 2 Weeks/year 2/year Juba based Leonard Mutuku Matheka Financial Management Consultant (GGODR) 4 Staff Weeks/year 4/year Nairobi based Christiaan Johannes Nieuwoudt Finance Office Staff Week/year 1/year Nairobi based Anjani Kumar Sr. Procurement Specialist (GGODR) 4 Staff Weeks/year 4/year Juba based John F. A Etidau Procurement Consultant (GGODR) 4 Weeks/year 4/year Nairobi Hugh Riddell Sr. Operations Officer (AFCE4) 1 Staff Week/year 2/year Nairobi based Ikechi B. Okorie Sr. Operations Officer (GGODR) Week/year 1/year Washington based Handley Consultant (GGODR) 4 Staff Weeks/year 2/year Nairobi based Matthias Mayr ET Consultant (AFCE4) 3 Staff Week/year 1/year HQ based Wolfhart Pohl Adviser (GCFDR) 1 Staff Week/year 1/year HQ based Timothy John Charles Lead ICT Policy Specialist (DECWD) 3 Staff Week/year 2/year HQ Ousman Abdulahi Ali Consultant (GPVDR) 4 Weeks/year 2/year Nairobi Caroline Nelima Wambugu Team Assistant (AFCE2) 2 Staff Weeks/year 1/year Nairobi based Salome Aganda E T Temporary 2 Staff Weeks/year 1/year Nairobi based