MINISTRY OF FINANCE
PFMRP IV ANNUAL WORK PLAN AND BUDGET
FOR
FINANCIAL YEAR 2014/15
May 2014
2
Table of Contents
1.0 Introduction 3
2.0 Planned activities for FY 2014/15 3
2.1 KRA1 – Revenue Management 3
2.2 KRA 2 – Planning and Budgeting 4
2.3 KRA 3 – Budget Execution, Accountability and Transparency 5
2.4 KRA 4 – Budget Control and Oversight 6
2.5 KRA 5 – Change Management, Programme Monitoring and Communication 9
2.6 KRA 6 – Strengthening PFM in Local Governments 11
3.0 Summary of Estimates bya KRA 14
4.0 Summary of Estimates by Components 16
5.0 Development Expenditure details of Annual Budget ..18
6.0 Five Years Workplan and Budget Revised 164
1.0 Introduction
The PFMRP phase IV started on 1st July 2012 and is a five Year programme which will come to an end on 30th June 2017. The reform agenda is to attain a more effective and efficient budget formulation, implementation, control and oversight in order to contribute to broad-based economic growth through a vibrant private sector development in a sequenced manner. PFMRP IV intends to address the critical limitations in the public financial management systems based on Six Key Result Areas (KRAs) namely: KRA 1- Revenue Management: KRA 2 - Planning and Budgeting: KRA 3 - Budget Execution, Accountability and Transparency;: KRA 4 - Budget Control and Oversight, KRA 5 - Change Management and Programme Monitoring and Communications and the newly established KRA 6 - Strengthening PFM in Local Governments.
The financial year 2014/15 is a third year of implementation of a programme which will focus on activities that contribute to the attainment of milestones as set out in the PFMRP IV strategy under the respective Key Result Areas. In order to implement the planned activities, the programme is estimated to spend a total amount of Tshs. 49,101,728,561. Out of these estimates, the total amount of Tshs. 23,031,120,000 will be contributed by Government of Tanzania; Tshs. 25,470,108,561 will be provided by development partners (DPs) through the Basket Fund and Tshs. 600,500,000 as Project Funds from African Development Bank. The summaries of estimates by KRAs and Components are shown in the tables 2.6 and 2.7 respectively.
2.0 Planned activities for FY 2014/15
The planned activities for components as set out in the respective KRAs are:
2.1 KRA1 – Revenue Management
KRA 1 has four components that aim at improving revenue forecasting, mobilization of resources, and reviewing and streamlining existing revenue policies, laws and regulations. Also the KRA will continue to improve external resource management, reviewing retention schemes and enhancing capacity for managing public investments. The planned activities under this KRA are estimated to cost Tshs. 1.926 billion. The table 2.1 below shows activities for KRA 1.
Table 2.1: Planned activities KRA 1
Policy Analysis Division: Planned Activities FY 2014/15i. To Review the sources of budget financing (budget reliability, predictability, Revenue Forecasting and Budget Credibility) by June 2015.
ii. To review VAT Act by June 2015
Prime Minister's Office - Regional Administration and Local Government: Planned Activities FY 2014/15
i. To conduct 5 days training to 514 Local Government Revenue Officers and Economist, on revenue collection plans by June 2015
ii. 8 PMO-RALG staff 2 PFM champions from 15 selected regions trained on i-Tax system
iii. i-Tax system rolled out to all 25 regions (Initial work for RS to operationalize in selected LGAs)
iv. To facilitate LGA Section at RSs & PMO RALG on monitoring capacity on LGAs revenue collection by June 2014
v. To conduct stakeholders meeting and discuss the proposed amendments on the Local Government Legislation ( Act No. 7, 8 and 9)
vi. To prepare a Cabinet bill of an act to amend the Local Government Finances Act No.7, 8 & 9 of 1982 before submission of a bill to cabinet for approval by February, 201
vii. To conduct inspections on LGAs performance (on value for money, legal compliance, policy adherence and fit for purpose) to 40 LGAs by June 2015
External Finance Division: Planned Activities FY 2014/15
i. To prepare, produce and publish DCF Action Plan and Monitoring Framework by June 2015
ii. To Sensitize DCF to EFD, DPPs, LGAs, MDAs, NSAs, Private Sectors and Members of Parliament by June 2015\
iii. To train 52 MDAs and EFD staff on the use of Aid Management Platform (AMP) by June 201
iv. To train 7 AMP administrators and 3 IT staff on Aid Management Platform (AMP) abroad by June 2015
v. Quarterly Meeting with MDAs and DPs to discuss AMP and aid management challenges
vi. To produce and share report on Aid Flows through GBS, Basket and Project Annually
vii. To train 30 EFD staff on Results Based Project Monitoring and Evaluation by June 2015
viii. To review development projects funds flows process to establish factors that have resulted in actual development funds consistently falling short of approved budget and recommend course of actions to eliminate and/or minimize them
Ministry of Natural Resources and Tourism: Planned Activities FY 2014/15
i. To improve and integrate the revenue collection systems (Tourism Hunting Management System, Photographic Tourism Management System & Tourism Business Registration and Licensing Management System) by June, 2015.
2.2 KRA 2 – Planning and Budgeting
This KRA which has two components focuses on macro-fiscal policy, planning, improving MTEF credibility, and facilitate program based budgeting. It will also broaden the scope of the chart of accounts to improve planning, budgeting, monitoring, reporting, transparency and accountability. The Medium Term Strategic Planning & Budgeting Manual (MTSPBM) will be reviewed to enable the national development planning and budgeting system articulate national targets and institutional plans and link the program goals to the desired institutional results. The planned activities under this KRA are estimated to cost Tshs. 1.405 billion. The table 2.2 below shows activities for KRA 2.
Government Budget Division: Planned Activities FY 2014/15i. To develop performance indicators for program and sub-programme objectives and target through working session involving 25 officers for 14 days by June 2015
ii. To review MTEF to make it program based budget compatible through involving 50 officers for 15 days by September 2015
iii. To train 60 staff for 21 days on PBB from new phased MDAs by June 2015
iv. To train 15 staff for two weeks on Trainer of Trainers course on PBB in SA/Mauritius by June, 201
v. To produce Annexes to budget book (Volume II) for Executive Agencies by 2014
vi. To review MTSPBM by June 2015
vii. To update SBAS tool to be used in resource allocation by June 2015
viii. To undertake phased training to 120 members of Budget Committees for MDAs, RSs and LGAs on resource prioritization and planning by June 2015
ix. To establish gender gap and gender sensitive indicators in the government budget by June 2015
x. To train MoF budget division officers and other selected officers from selected MDAs, RS and LGAs in Gender mainstreaming in the government budget by June 2015
Prime Minister's Office - Regional Administration and Local Government: Planned Activities FY 2014/15
To produce and disseminate budget allocation formulae findings to key stakeholders (PMO-RALG, MOF, PO-PSM, RSs, LGAs and Sectors)
Table 2. 2: Planned activities KRA 2
2.3 KRA 3 – Budget Execution, Accountability and Transparency
The focus of this KRA which has four components is to contribute to achieving greater predictability of resources to spending units, improve procurement capacity, improving cash and debt management, and improving the scope and quality of financial recording and reporting. The planned activities under this KRA are estimated to cost Tshs. 6.162 billion. The table 2.3 below shows activities for KRA 3.
Table 2.3: Planned activities KRA 3
Public Procurement Policy Division: Planned Activities FY 2014/15i. To finalize training needs’ assessment for Procurement and Supplies Staff in MDA'S by June, 2014
ii. To finalize and disseminate PMUs structure to PEs by June, 201.
iii. To develop and maintain PMU staff register in public sector by June, 2015
iv. 14 PPD officers to attend a study visit on monitoring and evaluation of public procurement implementation in Ghana and South Africa by June, 2015
v. To participate in the 7th East African Procurement Forum by June, 2015
vi. To develop National Procurement Policy Implementation Strategy by June, 2015
vii. To conduct 3 consultative workshops to review Public Procurement Act, 2011 and its Regulations by June, 2015
viii. To conduct 8 stakeholders meeting on Public Procurement by June, 2015
ix. To streamline roles of public procurement oversight institutions by June, 2015
x. To conduct study on how efficient is the public procurement system in Tanzania
xi. To monitor and evaluate performance of the public procurement oversight institutions [PPRA,PPAA,PSPTB & GPSA] by June, 2015
xii. To sensitize 500 stakeholders on public procurement policy and strategy by June, 2015
xiii. To conduct stake holders meeting on how to develop Complaints Responsive Mechanism by June, 2015
xiv. To develop and implement stakeholders' Complaint Responsive Mechanism by June, 2015
ACGEN: Planned Activities FY 2014/15
i. To train 358 TISS users from MDAs and RSs on fund transfer by June, 2015
ii. To train 200 Accountants on short term in PFM from MDAs by June 2015
iii. To integrate the system in order to facilitate reconciliation among ACGEN, TRA and BOT by June, 2015
iv. To conduct workshops to 165 LGAs Treasurers on improvement of financial reports in LGAs by 2015
v. To train 300 staffs from MDAs and LGAs on cash Management by June 2015
vi. To conduct workshops to 165 LGAs Treasurers on improvement of financial reports in LGAs by 2015
vii. To carry out consultative meetings with stakeholders for reviewing PFA, 2001 regulations by June, 2015
viii. To conduct workshops to 150 stakeholders to communicate the migration plan on the implementation of IPSAS Accrual basis.
ix. To train 250 Staffs from MDAs , RAS ,LGAs on 2001 GFS Codes and Chart of Accounts by June 2015
x. To conduct meetings with100 key stakeholders to review IPSAS accrual Progress by June 2015
xi. To train 86 accounting Officers and 100 non Financial Staff to develop awareness on IPSAS Accrual by June 2015
Policy Analysis Division: Planned Activities FY 2014/15
i. To sensitize stakeholders on functions of DMO by June 2015
ii. To establish Debt Management Office by June, 2015
iii. To monitor quarterly the contingent Liabilities of PA&OBs by June 2015
iv. To monitor guarantees approved by GoT for PA&OBs and for PPP financed projects by June 2015
v. To train 20 staff on Monitoring and handling of PA&OBs contingent liabilities by June 2015
Government Asset Management Division: Planned Activities FY 2014/15
i. To carry out analysis on data submitted by Valuer's before importation in SAGE by June 2015
ii. To import data in SAGE and provide operational support to GAMD regional offices by June 2015
iii. To train 25 Regional Stock Verifiers on use of asset tracking software by June 2015
iv. To conduct e-verification that update assets information of 35 MDAs by June 2015
v. To acquire 25 computers, 25 barcode scanners and other computer accessories for asset tracking software by June 2015
vi. To conduct short course training for 25 staff on risk-based inspection in asset management by June 2015
vii. To conduct stakeholders meetings for assets management policy by June 2015
viii. To engage Consultant on valuation of Government assets for 7 MDAs by June 2015
ix. To review Consultant's deliverables on valuation of Government Assets and provide feedback by June 2015
2.4 KRA 4 – Budget Control and Oversight
This KRA has five components focusing in strengthening both internal and external audit functions by: providing technical guidance and building capacity of MDAs, RSs and LGAs in the areas of internal audit; facilitating timely carrying out of independent examination of financial and physical performance and report to the public; and improving capacity to oversee the financial management in public enterprises and the oversight function of the Parliament. The planned activities under this KRA are estimated to cost Tshs. 22.049 billion. The table 2.4 below shows activities for KRA 4.
Table 2.4: Planned activities KRA 4
Internal Auditor General Division: Planned Activities FY 2014/15i. To train 200 internal auditors from MDAs, LGAs and RSs on Quality Assurance and Improvement Program procedure Manual (QAIP)by June,2015
ii. To conduct Monitoring on implementation of Quality Assurance and Improvement Program procedure Manual to internal auditors from MDAs, LGAs and RSs by June,2015
iii. To facilitate short course training to 15 IAGD staff on Quality assurance, Budget and Payroll Audit, Technical Audit and Leadership Management by June,2015
iv. To facilitate short course abroad to 2 internal auditors general staff on governance and controls by June 2015
v. To acquire specialized working tools (Laptops, photocopier machine and scanner) to Internal Auditor General Division Staff, Internal Auditors from MDAs, LGAs and RSs by June,2015.
vi. To make follow up on implementation of established Audit committees and Internal Audit units in MDAs and RSs by June,2015
vii. To conduct training on EPICOR to 200 internal auditors from MDAs, LGAs and RSs by June,2015
viii. To review Internal Audit Hand Book Set in lines with developed internal audit Manual by June,2015
ix. To sensitize 150 Accounting Officers on the internal Audit function and the use of Internal audit Manual/guideline, Standards and QAIP by June,2015
x. To conduct workshops to120 members of Finance committees in LGAs on internal audit functions and other PFM related issues by June,2015
xi. To review IAGD operational plan by June 2015
xii. To train 150 internal Auditors from MDAs , LGAs and RSs on usage of audit software tools by 2015
xiii. To train three staff on Audit Software administration by June, 2015
xiv. To acquire audit software tools by June 2014
xv. To rollout audit software tools in 5 MDA's and 5 LGA's by June, 2015
xvi. To carry out technical audit of 20 projects by June,2015
xvii. To train 300 internal Auditors in all MDAs and LGAs on how to audit development projects by June,2015
xviii. To monitor the implementation of risk management guidelines in 10 MDAs,5 RS and 15 LGAs by June 2014