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FEDERAL GOVERNMENT OF SOMALIA

PUBLIC FINANCIAL MANAGEMENT CAPACITY STRENGTHENING

PROJECT II (P151492)

JUNE 2016 QUARTERLY REPORT

 

 

 

 

 

 

 

 

 

 

 

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Table of Contents Page SECTION 1 – PROJECT PROGRESS REPORT .................................................... 3

1 Introduction ........................................................................................................ 4

1.1 Background on PFM Reform ....................................................................... 4

1.2 PFM 1 Project .............................................................................................. 4

1.3 PFM 2 Project Scope .................................................................................... 5

1.4 Report Structure ........................................................................................... 6

2 Project Implementation Progress ........................................................................ 6

2.1 Public Financial Management Reform Oversight and Governance Arrangements ......................................................................................................... 6

2.2 Component 2: Treasury management, budget execution, procurement, accounting and financial Reporting ....................................................................... 8

2.3 Component 4 - PFM Professionalisation ...................................................... 12

3 Somalia Financial Management and Information System ................................ 18

SECTION 2 – FINANCIAL REPORT ................................................................... 21

1 Project Expenditure by Object Grouping ...................................................... 23

2 Project Expenditure by Component/Activity ................................................ 24

3 Sources and Uses of Funds Report – SFMIS ................................................ 25

4 PFM II Disbursement Status by Contract ..... Error! Bookmark not defined.

5 Detailed Transactions Listing Q2 – DA Payments ...... Error! Bookmark not defined.

6 Detailed Transactions Listing Q2 – Direct Payments .. Error! Bookmark not defined.

7 Budget Utilisation Report as at June 2016 ....................................................... 27

8 Bank Reconciliation Statements – SFMIS .................................................... 28

9a Appendix 1 Bank Statement ......................................................................... 29

9b Appendix 2 – Trial Balance ....................................................................... 32  

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SECTION 1 – PROJECT PROGRESS REPORT

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1 Introduction 1.1 Background on PFM Reform The Federal Government of Somalia’s (FGS) Executive, Legislature and the Presidency have all prioritized security, justice and PFM integrity at the top of the country’s development agenda. This is driven by improved security, regaining of political legitimacy, and need to build citizens’ confidence and relationship with Development Partners (DPs) that public funds will be managed in a transparent, equitable and accountable manner. The Federal Republic of Somalia PFM self-assessment noted that long-term impactful reforms are yet to be undertaken. The Minister of Finance and Planning presented the PFM self-assessment report and proposed PFM strengthening initiative (2013-2016) to Development Partners on April 4 2013. The self-assessment report revealed amongst other issues that budget execution and procurement processes lack adequate transparency and efficiency and that the existing PFM legal framework is inadequate and requires modernization. Human resource and logistics challenges are also a major issue. Combating these weaknesses has been the main thrust behind the PFM reforms strategy being implemented by FGS. The PFM reform effort of the government is currently underpinned by the Somalia PFM Self-assessment report strategy with the following overall objective: “… to improve the efficiency and effectiveness of public financial management processes, and systems in order to provide timely, transparent and accurate financial information across the public sector to underpin policy formulation and inform Government decision making to support effective service delivery”. The specific aims to be achieved by the strategy are; • Improve transparency and openness of the national budget process; • Enhance fiscal discipline through internal and external controls; • Focus public expenditure on priority areas of Government programs; • Enhance efficiency and effectiveness of public expenditures; and • Strengthen overall financial management and accountability  1.2   PFM  1  Project    The World Bank in recognition of the government’s efforts in implementing PFM Reforms approved the Somalia Public Financial Management Capacity Strengthening Project (P146006 – TF16181) on 4th December 2013 at the tune of $4,500,000.00 and was completed by March 2016 and preparatory activities for the final audit of the Project is underway. The audit is expected to be completed before 31st August 2016 in line with the Project Agreement. The Project development objective is “to establish system for more transparent and accountable management and use of public funds in Somalia”. It is intended to catalyse the PFM reform action plan with

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the objective of laying the foundation for longer term reforms by strengthening controls around the basic Ministry of Finance and Planning functions.

The Project has the following components geared to the strengthening of the governments PFM reform activities:

(i) Component 1 – Public Financial Management Reform Oversight – This component supports the oversight and implementation structure in order to provide policy directions for strengthening the PFM systems and take periodic stock of progress by ensuring that key milestones in the PFM reform strategies are kept on track.

(ii) Component 2 – Somalia Financial Management Information System (SFMIS) – This component supports the development, configuration and installation of a user friendly computerised financial management information system focusing on capturing budget, treasury functions, payroll, tax collection and financial reporting.

(iii) Component 3 – Budgeting, Expenditure Controls, Procurement, Accounting and Reporting - The objective of this component is to strengthen controls needed for fiscal discipline and promote transparency and accountability and by extension supports the evolving business processes for budgeting, commitment controls, procurement, internal controls, internal audit, accounting and reporting.

1.3   PFM  2  Project  Scope    In cognisant of its strategic decision to be selective and focus on areas that build upon work already started under the PFM Capacity Strengthening Project 1 (P146006); the Bank gave approval for the second PFM Capacity Strengthening Project in July 2015 The Project is intended to consolidate the gains already achieved under PFM 1 and to address the challenges relating to PFM 1 as well as complementing other ongoing planned PFM activities. The overall Project Development Objective (PDO) is to establish institutional capacity for the management of public funds in Central Finance Agencies and targeted sectors. The project has the following components.

PFM 2 Project components Component Component Objective Sub-Components Component 1: Macro-fiscal policy formulation, revenue mobilization, planning and budget Preparation

The objective of this component is to improve the realism of the budget and instill fiscal discipline

Sub-component 1.1 - Introduction of Medium Term Fiscal Framework (MTFF), planning and budget preparation Sub-component 1.2 - Tax policy, revenue mobilization and tax administration

Component 2: Treasury management, budget execution,

The objective of this component is to strengthen controls needed

Sub-component 2.1 - Treasury management and budget

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Component Component Objective Sub-Components procurement, accounting and financial Reporting

for fiscal discipline and promote transparency and accountability.

execution Sub-component 2.2 - Accounting and Financial Reporting Sub-component 2.3 - Concessions, procurement and contract management Sub-component 2.4 - Financial Management Information Systems (FMIS) Sub-component 2.5 - Records Management Sub-component 2.6 ‘Mobile money’ transfer systems

Component 3: Strengthening the integrity pillars

The objective of this component is to strengthen key integrity pillars to hold government accountable for the use of public funds

Sub-component 3.1 - Foundations for Supreme Audit Institutions (SAI) Sub-component 3.2 - Planning, Finance and Public Accounts Committee (PAC) Sub-component 3.3 - Establishing the internal audit function

Component 4: PFM professionalization

The objective of this component is to build PFM competencies

None

Component 5: Project oversight, coordination and management

The objective of this component is to provide a structured approach to PFM institutional capacity strengthening

None

Component 6: Analytic and Advisory Services (Bank Executed)

The objective is to provide actionable PFM policy notes

Sub-component 6.1- Social Accountability and Open Government Data (OGD) Sub-component 6.2 - Governance/PFM Policy Notes

1.4 Report Structure This report is structured according to project components to allow for structured reporting and by extension systematic flow of accomplishments or non-accomplishment of the project activities. In that regard, the report is based on the implementation progress reports from the component leaders. These reports can be referred to for further details.  

2   Project  Implementation  Progress  2.1 Public Financial Management Reform Oversight and Governance  Arrangements    2.1.1 Project Coordination Unit

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The project implementation Unit headed by the PFMRCU Coordinator continues to coordinate the PFM Reform activities through the development and strengthening of collaboration with all Component Implementation Teams (CITs) including the supervision of the Subject Matter Experts (SMEs) and Technical Assistance Consultants working under various components of the project. The PFMRCU in addition continues to monitor the implementation of various contracts in line with the work plan, implementation timelines and contractual agreements. As the focal point of the project, the PFMRCU coordinator continues to serves as the key point of contact and liaison between the Ministry of Finance of the Federal Government of Somalia and the Bank and vice versa. To ensure the smooth implementation of the project implementation activities, the project coordination office has during the quarter under review provided the required logistical and other support to local and international consultants engaged under the project managed under the PFMRCU. In terms of its oversight responsibilities, PCU has worked closely with the respective component implementation units and consultants to ensure that all relevant reporting requirements including the submission of the first of 2016 reports and other adhoc reports are submitted within the required due dates and in line with the required formats.

2.1.2 PFM Reform Institutional and implementation Arrangements The PFM Reforms Coordinator continues to provide the on-going project monitoring and supervision in line the requirements of the project governance arrangements. In addition to periodic project management meetings (Technical Steering Committee and Component Implementation Team meetings) held during the quarter under review, a number of missions were also conducted by the project staff and the World Bank team in Nairobi to review implementation activities and further to guide the progress of the project activities on a regular basis. Action points agreed during these meetings are being implemented by the respective responsible officials and constant follow up is done by the PFMRCU on regular basis. A project governance framework remains in place and the implementation of the project is being spearheaded and managed by:

i. A PFM Reform Oversight Committee (ROC) chaired by the Prime Minister. The ROC has authority as decision makers responsible for the commitment of human and financial resources needed to implement the strategy successfully. The ROC report to the Office of the President that set the political tone for the broad governance reform agenda and manage any resistance to the reforms

ii. A PFM Technical Steering Committee (TSC) provides oversight of the project and is comprised of the Heads of the various PFM institutions and line ministries representing key front-line service delivery which will be accountable for the success of projects to implement the reform strategy;

iii. Component Implementation Teams (CITs) consisting of representatives from units of MOF to handle the day–to-day activities of the project; The CITS keep the TSC regularly informed at key points in the project.

An External Assistance Fiduciary Section (EAFS) which was established in the Accountant General’s Department continues to provide its harmonization role and coordination of donor

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support activities and thereby reducing duplication, fragmentation and proliferation of donor-specific financial management units. The key functions of the EAFS continue to include planning, budgeting, procurement, accounting and reporting of recipient-executed external assistance. This initiative is aimed at encouraging the use of country systems to reduce the administrative costs and also contribute to the strengthening and building of national capacity rather than fragmenting it through parallel systems that are normally dictated by the different donors. The EAFS continued to be supported by a procurement specialist and an Expenditure Control and Cash Management TAs as part of the skills transfer and capacity building.  

2.2   Component  2:  Treasury  management,  budget  execution,  procurement,  accounting  and  financial  Reporting  

2.2.1 Expenditure Controls, Cash Management, Accounting and Reporting The consultants recruited under this activity continues to provide onsite hands-on support to the EAFS team on daily basis as well as on the job training as part of the capacity building and skills transfer process with a view to eventually streamlining the roles and functions performed by the consultant into the main stream EAFS. He has over the period worked with the government counterparts in a number of areas including but not limited to: A 2015 Audit of the Projects Financial Statements

ü Preparation of Financial Statements - As part of the preparatory activities for the audit, the consultant worked closely with the EAFS team to prepare an IPSAS compliance financial statements on Cash Basis for the PFM I, PFM II and EFGP projects as well as the review of the RCRF II financial statements prepared by the RCRF II Subject Matter Experts (SMEs). In addition to the preparatory support provided to the projects managed directly under the PFMRCU, technical support was provided to the ICT I and CIP Projects Accountant for the preparation of the respective project financial statements in line with the IPSAS cash basis of accounting.

ü Compilation of audit schedules – In addition to the preparation of the financial statements the TA had worked in collaboration with the EAFS team to coordinate the compilation, preparation and verification of schedules of prepared by client listing requested by the auditors. The Director and Head of Accounts Section of EAFS were involved to considerable extent to during this process in order to build their capacity in handling similar requests in future audits of the project. The skills gaps noted during the this process were noted and the training modules will be updated accordingly in order to adequately address these gaps.

ü Technical Discussion and Walk-Through Session – In order to have a smooth execution of field work and also in order to ensure that audit is completed in time for submission to the World Bank, further separate technical discussion and system walk-through sessions were carried out by the Consultant with the Manager-In-Charge of the audit team and Assistant to enhance their understanding of the business processes,

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reporting issues, chart of accounts and documentation. In addition to the prepared by client listing requested by the auditors, additional schedules were prepared and shared with the auditors including the reconciliation of the financial statements to the trial balance, reconciliation of client connection disbursements to SFMIS direct payments, reconciliation of the fixed asset register to the trial balance among others.

ü Review of Bank Reconciliations – The automated bank reconciliation reports for the PFM I, PFM II and EFGP projects were reviewed in respect of the period covering January 2015 to December 2015 and issues noted during the review were compiled and shared with the SFMIS Technical and Report Development team for correction. The review was carried out with the Head of Account Section of EAFS with a view to build his capacity to be able to independently carry out such reviews in future on the automated bank reconciliations statements and by extension be able to initiate the required follow up action with responsible staff to resolve any issues noted during such reviews.

B. Compilation of the Fixed Asset Register – During the quarter under review, the TA worked closely with the responsible staff at the EAFS to compile information and prepare a detailed and comprehensive fixed asset register for PFM 1 and PFM II projects. The register was reconciled to the payment captured in the SFMIS and cross-checked against supporting documents prior to submission of the register to the SFMIS team for uploading into the SFMIS.

C. Closure of PFM I Project - In line with the Project Agreement, the project closed in March 2016 with a grace period to 31st July 2016. In view of this, the TA worked closely with the Project Coordinator and the team to review and analyse all outstanding commitments and ongoing contracts vis-à-vis funds available in the Designated Account and fund balance with the World Bank. In that regard, detailed schedules were prepared outlining the outstanding invoices to be paid from the remaining undisbursed balance of funds with the World Bank and the invoices to be paid from the fund balance in the designated account. In addition, the invoices to transferred and finally paid from the PFM II projects were also analysed and agreed upon accordingly.

D. Training and Capacity Building – As part of the Inception Report, the TA identified a number of training and capacity building issues affecting the EAFS and Accountant General’s staff and having closely worked with the team, he has been able to refine these needs and fine-tuned them to address the issues. In that regards, the TA is in working on comprehensive training documents to address most of the current capacity constraints of the team. Though some focus group and one-to-one training had already taken-off during the quarter under review, most of these trainings are expected to be covered during the next reporting quarter and the last quarter of 2016. The trainings are planned to be delivered in stages including one-to-one training focusing on tasks performed by respective individuals, focus group training which is geared to be broad based but grouping together staff who are assessed to be sharing similar knowledge and experience. These sessions will be followed by and consolidated with workshop type group based

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training. The adoption of this tier based approach is to simplified the training and avoid initially grouping together staff with varying levels of skills and experience and by extension it will help to structure and training and keep it in focus and relevant to the targeted staff.

E. Monitoring of Financial Commitment on Contract – In close collaboration with the procurement team, the consultant has prepared a comprehensive disbursement register for the PFM II and EFGP project to facilitate the monitoring of contract milestones for payments, the disbursement on each contract, the remaining commitment as required under the EAFS Manual.

F. Key Risks and Challenges

During the quarter under review a number of challenges were identified. The key risk and challenges that may require action within the next reporting quarter include:

a. Audit Findings and Recommendation – The audit report identified a number of challenges and controls issues and without proper coordination and follow up on monitoring of the implementation of agreed recommended courses of action, the issues may slip through to the next audit

b. Auto Reconciliation of the Treasury Main Account – The reconciliation report have significant reconciliation difference and overdue reconciling items

c. Low level of Financial Management Capacity at EAFS – During the hands-on training and mentoring of the EAFS team, it has been noted that there are constraints in terms of their accounting, financial management skills and understanding of rules governing donor funded project as well as audit issues. Such skills gap if remained unaddressed could affect the smooth implementation of project implementation activities especially the underlying financial management issues

d. Preparation and publication of Report – lack of systematic coordination of the periodic reports that required to be shared with the donors could result to untimely publication of reports on the MoF websites as agreed with donors

F. Recommendation to mitigate identified risks

a. Audit Findings and Recommendation – To prepare an agreed implementation action plan in respect of the audit recommendations agreed to be implemented by management and assigned respective responsibilities to facilitate follow up and monitoring

b. Auto Reconciliation of the Treasury Main Account – Technical discussion held with the responsible staff of the AGD and was agreed for him to obtain the soft copies of the bank statements in Excel format from CBS from January 2015 to December 2015 and then from January 2016 to June 2016 to enable a comprehensive analysis of the reconciling items.

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c. Low level of Financial Management Capacity at EAFS – One-to-One and group training session on various modules will be conducted during the ensuing quarters. In addition, hands-on and mentoring approach will be adopted to address some of the skills gap noted.

d. Preparation and Publication of Reports – Listing of the required reports, timing and officials responsible to be identified and compiled and a systematic approach of follow up to be instituted through the PCU.

2.2.2 Procurement During the quarter under review, the TA Procurement contracted under AfDB has continued to work closely with the counter-part government team on the PFM II procurement issues and the status report on various contracts are as summarised below:

The following under-listed contracts were finalized during the quarter under review:

• ITCILO - PFM training and education program (procurement) • WYG - PFM training and education program • University tuition services - Puntland based Universities (EAU and Puntland) • University tuition services - Mogadishu based Universities (SIMAD and Mogadishu) • Support the Public Procurement and Concessions Legal, Regulatory and Institutional

Management Reforms • Audit External Services (World Bank funded projects) • Purchase of three vehicles (SFMIS, Revenue and Audit departments)

The SFMIS infrastructural expansion contracted to Dial Up and Affordable Computers were fully executed during the quarter and the project had fully settled the financial commitments in respect of these contracts.

The evaluation reports or sole source requests for the following activities were also completed during the quarter under review.

• Revenue mobilization and Tax administration • Treasury management • SFMIS Training Microsoft Certification Services • TA Procurement operations (individual consultancy services) • TA Procurement policy (individual consultancy services) • TAC Force International (accommodation and logistics services) • Somtel Internet services for Puntland university

In addition to the contract related activities performed during the period, the TA had worked with the procurement team in a number of areas including:

• Coordinated with the Procurement Directorate the compilation of documents to submit to the external auditors

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• Conduct training to the Procurement unit staff members as part of the skills transfer and capacity building

• Prepared procurement implementation plans for planned activities next quarter • Updated contract procurement register list for all donor-funded projects as required

under the EAFS Manual; • Updated Shared Procurement folder, which contains standard bidding documents

(Goods, Works, Services and Consulting services) for AFDB and World Bank-funded projects, guidance notes and model letters and procurement checklists.

• Provided technical assistance to finalize the establishment of Procurement Committee within MOF in conformity with the provisions of the PPDCA;

• Reviewed inception report submitted by EY support to legal procurement reform contract.

2.3 Component 4 - PFM Professionalization The PFM Education and Training is one of the flagship priority implementation activities under PFM aimed at building capacity at the individual level for them to obtain the required skills and capability in handling their respective PFM functions. It targets government staff with financial management responsibilities in planning, budgeting, procurement, accounting, internal and external auditing.

The Somalia Public Financial Management (PFM) Education and Training Programme commenced on July 1, 2014 and continued to be handled through a coordinated effort involving collaboration between the Federal Government of Somalia, universities within Somalia and an international consortium led by WYG International and including the Chartered Institute of Public Finance and Accounting (CIPFA) and Michael Parry Consulting. Through separate contractual arrangements the International Training Centre of the International Labour Organisations (ITC-ILO) is providing procurement training.

2.3.1 PFM Education and Training for Somalia Procurement Stream

Background The International Training Centre of the ILO (ITCILO) is providing consultancy services for the development and implementation of the procurement component for the distance learning certification scheme. This scheme will be implemented in a dual manner, i.e. by (1) a traditional distance learning program and (2) a parallel track as a self-learning program with tutorial support. ITCILO will coordinate activities with the consortium of WYG-International, Michael Parry consultants and the Chartered Institute of Public Finance and Accountancy (CIPFA) –WYGI. The main targeted participants are planning and budget officials, procurement officers, accountants and internal and external auditors.

Objective of the training

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The overall objective of the PFM Education and Training Program is to support the PFM reform of the Government “to improve the efficiency and the effectiveness of public financial management processes and systems, in order to provide timely, transparent and accurate financial information across the public sector to underpin policy formulation and inform Government decision making in support of service delivery”.

Summary of key activities undertaken during the quarter Procurement Stream Training The main activities of the capacity building part of the PFM reform are tutored distance learning courses for Somali civil servants. ITCILO is providing the procurement stream of the courses. This scheme is being implemented in a dual manner, i.e. by (1) a traditional distance-learning programme and (2) a parallel track as a self-learning programme with limited tutorial support.

The summary of delivery status of various activities at the end of reporting quarter is as summarised in the table below1 No Description of Training Activity Status 1 A tailor-made course structure and syllabus for the Certificate level

program of the procurement stream Delivered

2 Learning material for the Certificate level including: Study text book and tutorial material for each Module (PPT presentations, exercises, case studies, hand-outs, etc.); Online learning materials, revision courses, webinars on selected topics (4 webinars co-delivered with WYG); a list of bibliography of relevant reference material per Module/topic; a glossary of procurement terms. This material will be provided in electronic format for uploading to the online distance learning (ODL) PFM website

Delivered

3 The face-to-face training of the university tutors at the certification level will be jointly delivered with the WYGI-C consortium for the duration of 3 weeks. ITCILO is not in charge of organizing the participant’s logistics venue

Delivered

4 Enrolment of students: The pre-requisite for enrolment is the successful completion of the PFM introductory course, including exam, and Government’s approval. In case of no exam foreseen for the PFM introductory course, WYGI-C should put measures in place to ensure an adequate level of English

Delivered

5 Delivery of the ODL Procurement certification course: It will be delivered to those students who have been successfully enrolled; the delivery shall start immediately after the successful enrolment of the above students.

In process (final days of review for exam on 15 July at universities still ongoing)

6 Tutorial and administrative support to tutors and students In process

                                                                                                                         1 Extracted from the Q2 Report of the ITCILO Procurement Stream Training Report

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7 Joint accreditation protocol for examination purposes. The written

examinations shall take place under controlled conditions with a set time limit in accordance with normal examination practice and shall be sent to ITCILO for correction

Delivered

8 An examination and certification process based on the three modules. Students undertaking written examinations at the participating universities, with the papers marked by ITCILO. Upon completion of the Modules, students will have access to their first exam (with two re-sit examinations in case of failure). This will lead to the: Award of Certificate to successful candidates. Exam has been delivered with the universities and is set to take place on 15 July 2016.

In process

9 Development of the Senior Management (PFM for Managers for the Procurement Stream) Training including guidance notes, timetable and questions and answers for on-line self-assessment tests. Program delivery is awaiting nominations from the FGS

Awaiting nominations by the FGS

10 Participation in overall course management and coordination processes.

In process

11 Contribution to progress and final reports on the procurement component

In process

Delivery of Training Programmes at Partner Universities During the period covered under this report (April to June 2016). The certification program is ongoing in the each of the four universities. The universities have organized the class schedule and divided the students in groups, the schedule is relatively similar in all universities with 2 days of part time classes per week. Both Puntland-based universities have enrolled 90+ students counting tutors and assistant tutors, while the Mogadishu-based universities have enrolled around 50 students each. The students have been enrolled in the ITCILOs student management platform. The number of enrollment as time of reporting is summarised in the Table below:

University Students (inclusive of Tutors)

From PFM stream

NEW

Puntland 94 44 50 East Africa 94 44 50 SIMAD 51 4 47 Mogadishu 48 6 42 Total 287 98 189

 

 

Webinars

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After consultation with the PFM coordinators and the experience of the PFM stream, and also taking into consideration the asynchronous start of the program within the universities, the decision was taken to replace the webinars by a series of video lectures.

In the original design of the program it was envisioned to have 4 webinars, this has been transformed into 11 video lectures that touch upon the most contentious aspects of the material presented in the three modules. To aid the students into gaining access to this valuable resource ITCILO has developed a platform for the delivery of the video lectures where the students additionally find all the relevant material of the program. This was done, learning from the PFM stream, with the purpose of the students having a one-stop-shop for the comprehensive viewing of all the videos.

Quality assurance We have persistently endeavoured to aid in the pedagogical delivery of the certification scheme the recommendations of tutors and mentor tutor (Mogadishu and SIMAD) we have updated all the modules to allow for a clearer delivery of knowledge and to aid the self-study of the students this has been done in close collaboration with the procurement experts that helped deliver the training of trainers in Addis and Kampala.

Examination The first edition of the certification program is coming to its end and the certification examination will take place 15 July 2016. We have sent a letter of accreditation to each university allowing them to act as examination centres for the ITCILO and setting out clear rules and conditions that need to be met by the universities.

Platform issues and challenges In this period most of the platform issues that had impacted the delivery of the ITCILO such as the updating of the platform and the omission of the PFMfM procurement stream from the platform have been resolved. While the impact of these delays was limited it did cause suboptimal resource allocation by the ITCILO to have to wait or liaise with the implementing partners when an issue arose with regard to the platform.

One of the most challenging was the addition of the PFMfM procurement stream that was not part of the original website design and close collaboration for the implementing partner’s consortium (WYGI-C) was needed to be able to resolve this issue and to enable ITCILO to deliver this service.

2.3.2 PFM Education and Training - Universities

a. University of Mogadishu The activities conducted in these months include commencement of the revision and final exams for MA, FA and PFM for Somalia modules as well as the introduction of the Procurement Stream. On 31st May 2016, CIPFA exams were started officially at Mogadishu University centre

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for professional exams. On that day, candidates sat for Management Accounting (MA) paper at CIPFA’s certificate level. Forty candidates committed to sit for that paper; however only 33 candidates sat for the exam while the other seven candidates were absent due to illness and other unspecified reasons. On the 1st June, candidates sat for PFM for Somalia. Most candidates attempted this paper during the last sitting and were successful, so only 13 candidates sat for this paper in this exam diet. And there were five absentees. On the final day of exam, the 2nd of June 2016, candidates sat for Financial Accounting. Because 27 candidates had passed this paper in the previous sitting, only 17 candidates were expected to attempt the paper but 9 candidates eventually ended up attending the exam with rest been absent mainly due to the attack on the Ambassador Hotel which led to the closure of roads near the hotel. Since the centre was not far from the attached hotel, this affected the turnout for the exam. The training on the procurement stream modules also kicked-off at the Somali National University and first two modules had been complete, mock exams done results shared with students. On the 26th June 2016, the University started running the revision courses which is expected to run until 7th July 2016 Absence from the examinations is a reoccurring phenomenon and from previous experience there seems to be direct correlation between the rate for absenteeism and the failure rate in exams. Students in most cases tend to claim that they are performing other national duties and thus find it difficult to attend the classes on more regular bases. In that regard the University is asking the respective departments to allow these candidates the necessary time to attend classes, revisions, and the exam. b. Puntland State University Key training activities undertaken by the University during the quarter included:

ü The Module 1 and 2 exams of the procurement has been held ü The classes carried out and completed for both MA and FA during the quarter under

review ü The revision , question banks, and other academic responsibilities have been done before

the exams. ü Module 3 Exam has been Held ü MA , FA exams has been shipped back to CIPFA. ü Revisions of the procurement classes are going on. ü The Procurement students are waiting the 15th July final exam while CIPFA students are

waiting the result of the MA and FA exams.

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One of the key ongoing challenges is the full accreditation of the universities in both the PFM and Procurement Programs. c. East Africa University

e. Simad University Training Activities executed in June 2016

Activities Achievement

Summary of Training Activities executed in June 2016

FA exams Finally FA exam at 2nd June with no incident.

Procurement module Three Exam

Students has attended Procurement module three exam, which is the final one before final exam.

Procurement Revision After finishing FA and MA exams students were busy for procurement revision.

Summary of Training Activities executed in May 2016 Revision Mainly May month is the busiest month of this semester.

Students were engaged revision with the support of tutors

Mock Exam Both MA Mock and specimen text has been taken due to the time constrains.

Procurement module Two

Procurement module two has been finished and test has been taken. Exam attendance was not as high as module one ,but pass rate was good

MA exams Finally did MA exam at 31 May with no incident.

Summary of Training Activities executed in April 2016

Progress test for MA and FA

MA progress test has been done. Results was reasonable although two books were remaining

Registration of FA and MA students

Exam booking has been submitted to Sara Breen all students who would like to take both FA and MA exams in June 2016. Some students would prefer to postpone their exams until September and November

Procurement Exam and Module two

Procurement module two has been started and as well first module exam has been taken. Exam result was good and pass rate was so high

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Final exam of FA, MA and IPFM The final examinations of FA, MA and IPFM were handled accordingly. The scripts of the examinations have been shipped to London for marking. Overall 30 students attempted for the Management Accounting Module the exam whilst 22 attended the PFM for Somalia module.

Training Activities executed in May 2016 STUDY PROGRESS (PFM) Revision of the FA, MA and IPFM for the resit students

continued successfully. In addition to that, tutoring of the procurement stream continued as planned. The contact hours of each course was designed to be 6 hours per week

Mock Exams Mock examinations of both PFM and procurement Stream were successfully handled

Training Activities executed in April 2016 STUDY PROGRESS (PFM) Revision of the FA, MA and IPFM for the resit students

continued successfully. In addition to that, tutoring of the procurement stream continued as planned.

3   Somalia  Financial  Management  Information  System    Apart from the ongoing routine support to the end-users of the system, the SFMIS team continues to provide further technical support to the transaction processing as well further enhancement of the system functionalities and deepening to cover additional business processes. In that, a number of activities including but not limited to the following were undertaken and completed during the quarter ended 30th June 2016. Payroll Bank Direct Deposit

Ø Import of all employee’s bank account information for AG Department and Ministry of Finance employees

Ø Import of all employee positions from the updated NCSC list, currently only 1 employee having Undefined position

Ø Central Bank External Payroll Transfer o Design and development of Central Bank Payroll Transfer function with

workflow approval o Design and development of Central Bank Payroll Transfer report

Ø Creation of an extract for all employee information in support of the WB monitoring agent

Ø Analysis and development of Payroll external transfer to external commercial banks: o Analysis of transfer process

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o Design and development of Excel Sheet extract from the transferred payroll to commercial banks

o Design and development of Excel sheet import to SFMIS after update from commercial banks

o Design and development of Payroll exception report for un-paid salaries o Design and development of correction screen for exception payroll and re-

generation of payroll batch Ø Implementation of the Asset Registry Module

o Most assets (Computers, etc) purchased under the WB programs have now been registered

System Modifications and Report Development Ø Update the Budget Inquiry exported excel sheet to include the description of all COA

segments Ø Development of Cross-Functional Parameter form and Report Ø Analysis & Development of IMF SMP reports.

o Expense & Revenue Trend Report & Excel Sheet o Cash Forecasting & Allotment Report & Excel Sheet o Financial Summary Report & Excel Sheet o Expense Report by MDA & Object Group Report & Excel Sheet o Expense Report by MDA Report & Excel Sheet o Revenue Report & Excel Sheet

Ø Creation and Execution of Payroll Script for one-time deduction. The deduction was meant to support drought victims in the country

o Updated April Payroll for all employees to include the one-time deduction. o Creation of EV for fund transfer of disaster recovery amount o Development of relevant business processes

Ø Payment process efficiency report: Designed, developed and implemented a report to help the MoF executives to analyze the efficiency of the entire payment process from the initial request to the actual payment by CBS

Support Activities

Ø Provide support to the AG and the core users of the system o 34 helpdesk tickets have been resolved over this period o Support to the AG and the EAFS team to produce the monthly and quarterly

reports Key activities planned to be executed as part of the SFMIS activities in the ensuing quarter include:

Ø Development of auto-commitment for payroll

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o Creation of commitment upon submission of payroll o De-Commitment upon payment of payroll o Development of manual commitment form

Ø Development of Contract / Project Management Module o Project Master form o Contract Master form o Project Payment Schedule o Project Payment Generation o Project Financial Reporting

Ø Human Resources Release 2 o Manpower planning o Time Management o Training Register o Employee Self-Service o Performance Appraisal

 

   

 

 

 

 

 

 

 

 

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SECTION 2 – INTERIM FINANCIAL REPORT  

 

 

 

 

 

 

 

 

 

 

 

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FEDERAL GOVERNMENT OF SOMALIA Office of the Accountant General

     

 External Assistance Fiduciary Section

Quarterly Financial Report Quarter Ended 30th June 2016

 

   

SOMALIA PUBLIC FINANCIAL MANAGEMENT CAPACITY STRENGTHENING PROJECT II (P151492)

 

 

 

2016

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1   Project  Expenditure  by  Object  Grouping    P151492- Public Financial Management Capacity Strengthening PROJECT II

Project Expenditure For the Quarter ended 30th June 2016

Description QTR 2 Ended June 2016

           RECEIPTS Receipts from World Bank 985,705 Refunds Paid into DA Total Receipts 985,705.20 Project Expenditure by Object Code: Fuel and lubricants 1,272.00 Repairs and maintenance     1,770.00 Office materials and other consumables 24,009.45 Travel expenses 10,677.50 Training expenses 110,116.46 Consulting and professional fees 116,060.00 Bank commissions 2,420.85 Information and Communication Technology (ICT) 655,597.30

Other fixed assets 119,304.00 Total Expenditure 1,041,227.56 Receipts Less Expenditure During the Quarter (55,522.36) Foreign Exchange Difference _ Opening Balance 320,068.06 Net Cash Available 264,545.70 Closing Cash Balance 264,545.70  

   

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2   Project  Expenditure  by  Component/Activity    P151492- Public Financial Management Capacity Strengthening PROJECT 1

Project Expenditure For the Quarter ended 30th June 2016

Description Quarter Ended 30th June 2016

Cumulative - Over the Project Life

RECEIPTS Receipts from World Bank 985,705.20 1,587,608.90 Refunds in respect paid into the DA 3,985.17 Total Receipts 985,705.20 1,591,594.07 Project Expenditure by Component: Macro-fiscal policy, planning and budget prep. 57,000.00 178,245.70 PFM Reform Oversight 180,636.91 233,725.06 Somalia Financial Mgt Information System (SFMIS) 685,697.30 712,297.30 Treasury Mgt, budget exe., proc., acct and Report. 16,860.00 61,670.00 Strengthening the integrity pillars 57,000.00 89,496.00 Project oversight, coordination and management 2,420.85 10,001.81 Expnditure Control, Procurement, Accounting and Reporting 41,612.50 41,612.50 Total Expenditure 1,041,227.56 1,327,048.37 Receipts Less Expenditure During the Quarter (55,522.36) 264,545.70 Foreign Exchange Difference Opening Balance 320,068.06 Net Cash Available 264,545.70 Closing Cash Balance 264,545.70

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3   Sources  and  Uses  of  Funds  Report  –  SFMIS