REVIEW OF DEVELOPMENT ASSISTANCE AND MAJOR FUNDING MECHANISM

REVIEW OF DEVELOPMENT ASSISTANCE AND MAJOR FUNDING MECHANISM OF THE NATIONAL AIDS RESPONSE Dr R L Adupa January 31 st, 2006 Funding Mechanism 1

OBJECTIVES OF FUNDING MECHANISM REVIEW OBJECTIVES – to review performance and contribution of development assistance and major funding mechanisms VS international agreements – to examine challenges and consider ways of improving harmonization and alignment of funding mechanisms to national planning and budgeting processes PARIS COMMITMENTS/GTT RECOMMENDATONS – Ownership and Leadership – Alignment – Harmonization – Managing for Results – Mutual Accountability January 31 st, 2006 Funding Mechanism 2

OWNERSHIP AND LEADERSHIP • • • Leadership in National AIDS Response Ownership Annual Priority Action Plan Support for Integration of AIDS into PRSP Economic Consequences of AIDS and Macroeconomic and Public Expenditure Framework – USE OF SYSTEMS & TOOLS TO OWN, LEAD AND COORDINATE DEVELOPMENT ASSISTANCE ON HIV/AIDS IS WEAK January 31 st, 2006 Funding Mechanism 3

Leadership in National Response UAC = National AIDS Coordinating Authority by Act of Parliament – Political commitment at highest level – UAC Board and UAC Secretariat – Partnership mechanism for coordination – 12 SCEs, PC and PF – Focal Point Persons – Line ministries and districts – District Task Force – Coordination Committees at line ministries and districts – Policy Committees: SC-MAP; NCC-GF and AC-PEPFAR – UAC Statue being revised – HIV/AIDS overarching Policy developed – NSF to be revised early 2006 January 31 st, 2006 Funding Mechanism 4

Leadership in National Response • Concerns – Differentiation in roles of Chair of Board and of DG not clear – 70% of staff are in administration and support services – TAs not seriously involved in capacity building – Weak internal management and coordination – Complaints in operations of 3 Policy committees – Overlap in membership to 3 Policy committees • Recommendations – Clarify lines of authority and accountability – UAC Board, Secretariat, OOP, PMO, MOH, Partnership Mechanism, Coordination Committees and Project management – High profile leadership of the Commission and of Secretariat, Partnership and coordination structures to be revamped – Decide on retaining all 3 policy committees, having one steering committee or subsuming them in Partnership Committee January 31 st, 2006 Funding Mechanism 5

OWNERSHIP - cont ISSUES MAP GF PEPFAR Nature Loan Grant Contribution 5% by GOU - - Negotiations MOFPED, Parliament, UAC, MOH - - Mechanism Budget Support Non-budget support Design/Proposals GOU agencies, CSOs, districts US-Country Team and US-Agencies Principal Recipient MOFPED/UAC MOFPED/MOH US-Agencies CONCERNS • Different ownership • Proposal driven by availability of funds RECOMMENDATION S • UAC to continue advocacy on ownership January 31 st, 2006 Funding Mechanism 6

Annual Priority Action Plan • Annual work plans: by FP persons • Annual Plans approved by differently – no harmonization • No strategic plans for many sectors/districts – Contribution of MAP and AIM/UPHOLD • First Annual AIDS Action Plan – JAR; January 06 -June 07 • Recommendations – Harmonize plans of MAP, GF and PEPFAR – Sectors and districts develop strategic plans = NSF and respective sector and district long term strategies – UAC, sectors and districts to develop annual plans with vertical and horizontal linkages January 31 st, 2006 Funding Mechanism 7

Integration of AIDS in PRSP • PRSP=PEAP – HIV/AIDS is cross-cutting in PEAP • PEAP to National Plans – Plans developed by Sectors: HIV/AIDS=MOH • HIV/AIDS is multi-sectoral- affects MOH’s ceiling • MOH can’t address non-health issues – UAC working on shared planning for HIV/AIDS • Pre-supposes HIV/AIDS mainstreaming January 31 st, 2006 Funding Mechanism 8

Integration of AIDS in PRSP - cont Constraints to Mainstreaming HIV/AIDS • Inconsistent understanding • Opportunistic planning • Inadequate capacity of Focal points • Inadequate support by UAC • Lack of donor support • SWGs in general: – Not HIV/AIDS competent – Inadequately equipped with evidence based strategic information on HIV/AIDS and development in context of each sector • Recommendations – UAC to develop a comprehensive capacity building strategy for mainstreaming – ADP and UAC should increase advocacy for mainstreaming of HIV/AIDS in public sector and support production and harmonization of action plans January 31 st, 2006 Funding Mechanism 9

ALIGNMENT Multilateral institutions and international partners work with national AIDS coordinating authorities to align support with national strategies, policies, systems, cycles and annual priority AIDS action plans • • Public Financial Management and Audit Procurement system Parallel Management Units Capacity building ALIGNMENT IS WEAK AND SYSTEMS NEED REFORM January 31 st, 2006 Funding Mechanism 10

FINANCIAL AND AUDIT SYSTEMS ISSUES MAP GF PEPFAR Financial System Government US-Agency & CSO’s Disbursements to CSOs Problematic at district Lead Agencies Problematic Not problematic Response Time (Disbursement/Ac count) • PCT slow • Slow Accountability • PMU slow • IAs slow • US-Agencies prompt • IAs prompt Diversion Sometimes diversion by Gov Agency Possible with CSOs Auditor General USG Approved auditors January 31 st, 2006 Funding Mechanism 11

Financial Management and Audit Systems • Issues – Diversion of funds – Access to funds by CSOs is problematic – CAOs not involved in resource allocation and accountability of CSOs – Capacity of AG’s Office is inadequate – US-Agencies accountability/audit report not shared – IFMS most welcome • Recommendations – Accounting officers enforce financial discipline – Donors support capacity building and sharing of information on FM and audit January 31 st, 2006 Funding Mechanism 12

PROCUREMENT SYSTEM ISSUES MAP GF PEPFAR System Gov & WB Gov Guidelines Provided to IAs Not provided to IAs Own guidelines Procurement Plan Drawn but not adhered to Plan by IA Restrictions None Some: ARVs, Travel Distribution Delays? No delays Procurement of TAs Participatory? By US-Agency January 31 st, 2006 Funding Mechanism US-Agency & CSOs with TA provided 13

Procurement -- cont Concerns • Procurement laws good but slow • Lack of procurement policy on HIV/AIDS supplies • Overlap in procurement across projects • NMS performance is low • Pooling system vs project procured supplies • Lack of participation in proc of TAs • Off-shore procurement debate Recommendations • Gov comes with clear policy on proc of HIV/AIDS supplies • All spending agencies should adhere to agreed procurement plans • Use of NMS and pooling system need to be rationalized • Stock at NMS need to be distributed expeditiously • Off-shore procurement be further explored by MOFPED, MOH, UAC and ADPs January 31 st, 2006 Funding Mechanism 14

Parallel Management Units • MAP: PCT, TRN, $600, 000 per annum • GF: PMU, HIV/AIDS Technical working Group; $? • PEPFAR: PEPFAR Secretariat, US-Country Team; USAgencies; Unknown amount in mgmt in USA+US-Agencies • • Institutional memory lost No continuity and use of experience High administrative/transaction costs Duplication of processes and systems – resource implications? Recommendation • Current opportunities for streamlining parallel structures need to be utilized January 31 st, 2006 Funding Mechanism 15

CAPACITY BUILDING • MAP: Advisor to MOGLSD; training project driven; civil work allowed • GF: Long term TA? ; Training donor driven; civil work? • PEPFAR: TA to UAC – PEPFAR Secretariat; training project driven; civil work minimal • Low capacity in programmes, finances, M&E • Lack of coordinated national strategy • Donors hard on long term training and civil works Recommendations • UAC to produce comprehensive CB strategy while synchronizing current CB efforts of MAP, GF and PEPFAR • Donors consider supporting selective long term & civil January 31 st, 2006 Funding Mechanism works 16

HARMONIZATION Global Fund, WB and other multilateral institutions and international partners committed to harmonizing and better coordinating their programming, financing and reporting. • Selection of Grantees • Funding Mechanism • Joint Activities LITTLE EFFORT HAS BEEN MADE FOR HARMONIZATION OF MODALITIES OF ADPS January 31 st, 2006 Funding Mechanism 17

SELECTION OF CSO GRANTEES ISSUES MAP GF PEPFAR CSO • National CSOs • CHAI Groups • Lead Agencies • CSOs • US-Agency & CSOs Gov Involvement • PCT • District AIDS Comm. • PMU • CAOs sign proposals • US-Country team • Not clear Criteria • Own criteria • Limited adherence • Own criteria • Strict adherence Affirmative Action • National component • CHAI component January 31 st, 2006 • 46% of Round 1 • CSOs major HIV/AIDS to CSOs beneficiary Funding Mechanism 18

Grantees - cont. • Lack of coordination and sharing of strategic information on support to CSOs • Duplication: questionable synergy, complementarity • Many unsynchronized criteria with limited adherence • Many CSOs whose roles vs Gov and comparative advantage not known • Poor geogrpahic and thematic coverage Recommendations • Donors, gov and CSOs agree on roles of CSOs vs Gov agencies • Modalities for engaging different types of CSOs be rationalized and adhered to January 31 st, 2006 Funding Mechanism 19

FUNDING MECHANISM ISSUES MAP GF PEPFAR Mechanism Budget support Non-Budget support Public sector support • Health Sector ceiling vs nonhealth funds • MOH vs Oo. P for UAC • None CSO Frustrated by districts Frustrated by Lead Agencies Frustrated sometimes by USAgencies January 31 st, 2006 Funding Mechanism 20

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FUNDING MECHANISM • Recommendations – UAC should document experiences in channeling funds through various mechanisms by GF, MAP and PEPFAR – ADPs should explore further a virtual Uganda AIDS Funds at UAC with an agreed modality for access by CSOs – The mandate of UAC to coordinate HIV/AIDS response including funds should be strengthened and supported January 31 st, 2006 Funding Mechanism 22

JOINT ACTIVITIES • • MAP: Joint supervision mission & Reviews of MAP GF: ? ? ? PEPFAR: Jointly with other US funded support on SO 8 Joint Annual reviews of sectors not including HIV/AIDS • SCEs (UN Agencies & Bilaterals) & ADPG with TOR • JAR jointly supported by ADPs taking place now Recommendations • A mechanism for promotion and provision of incentives for harmonization among stakeholders be worked out by UAC • ADPs need to publicize, advocate for and adhere to their TOR and mutually monitor its implementation • UAC to insist on joint activities by ADPs January 31 st, 2006 Funding Mechanism 23

MANAGING FOR RESULTS Multi-laterals and partners strengthen national M&E mechanisms and structures for oversight and problem-solving MANAGING FOR RESULTS IS STILL WEAK • • UAC lacks M&E staff M&E framework not operationalized • • • MAP: strong capacity for M&E; in-house software GF: weak capacity for M&E; no system PEPFAR: stronger capacity for M&E through subcontracting; webbased platform Recommendations • UAC spearheads capacity building in M&E • M&E systems be synchronized between projects and gov departments January 31 st, 2006 Funding Mechanism 24

MUTUAL ACCOUNTABILITY National AIDS coordinating authorities to lead reviews of performance of multi-laterals and international partners and national stakeholders • Involvement of Parliament • Funding Commitment and Predictability • Joint Review MUTUAL ACCOUNTABILITY IS WEAK January 31 st, 2006 Funding Mechanism 25

Involvement of Parliament • • • SCE-Parliament Standing Committee on HIV/AIDS in Sessional Social Services Committee Standing Committee visits to MAP project Chairperson of Standing Committee on HIV/AIDS is member of 3 -SCs • Standing committee visit/oversight on project basis • Budget Act 2001 provision on accountability of AID not enforced Recommendations • Facilitate a coordinated visit of Parliamentarians to HIV/AIDS projects/programmes • The two Committees should demand accountability as stipulated January 31 st, 2006 Funding Mechanism 26

Funding Commitment and its Predictability • MAP – WB support to GOU mainly through PRSP that has been reduced from $150 m-135 m per annum • PEPFAR – $142 m for 2006 – Support beyond 2008? • Other Partners – Basket funding – ADPs e. g. DCI Euros 1. 97 m to 2 m; January 31 st, 2006 Funding Mechanism 27

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MUTUAL ACCOUNTABILITY cont Joint Review • Partnership Forums held annually – this being 4 th one • JAR held in December 2005 to provide technical input to Partnership Forum Recommendations • MOFPED and UAC should advocate for short and medium term funding; UAC should facilitate process by annually tracking availability, allocation, utilization and accountability of funds to both public and CSOs • Donor to be more transparent in their commitments and disbursements • GOU needs to begin reflecting on sustainability issues • UAC to institutionalize JAR in order to influence planning, resource mobilization and allocation, management of resources and implementation for results January 31 st, 2006 Funding Mechanism 29

Costs of Continued Weakness in Ownership, Alignment, Harmonization, Managing of Results and Accountability Credibility of the national response is compromised By-passing central government by providing aid through vertical projects Agenda becomes donor-driven and often inconsistent with the “one national framework”. Impossible to scale-up the response in this environment Distortions in human capacity, policy dialogue, focus, partnership… Undermine quality of governance and capacity of the public sector & CSOs Stakeholder confidence levels fall January 31 st, 2006 Funding Mechanism 30

FOOD FOR THOUGHT Dr Peter Piot – UNAIDS Executive Director in December 2005 at ICASA Conference in Abuja Nigeria observed that • “We need to make money work for the people on the ground and reach every single person with effective HIV/AIDS prevention and control programme. ” This requires: • “. . all of us to be trully committed to inclusive ownership, efficient management, transparency, accountability and coordination” • “Donors to stop funding grants for AIDS programmes without a strong capacity building component and governments and CSOs should stop accepting them”. NATIONAL OWNERSHIP/LEADERSHIP, ALIGNEMENT, HARMONIZATION, MANAGING FOR RESULTS AND MUTUAL ACCOUNTABILITY January 31 st, 2006 Funding Mechanism 31

THANK YOU ALL January 31 st, 2006 Funding Mechanism 32