ACKNOWLEDGEMENT. MASAF III Operational Manual Monday, 20 October
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1 ACKNOWLEDGEMENT This Operational Manual (OM) is a product of a collaborative effort that involved many stakeholders. The MASAF Programme Preparation Team (PPT) led the preparation process that involved nation-wide stakeholder consultations. The stakeholders included communities, Traditional Authorities, Councillors, Members of Parliament, District Executives, Non Governmental Organizations (NGOs) and Private Sector organizations. The MASAF Management Unit (MU) coordinated the various drafting teams of Operational Handbooks that provided input into the writing of this OM. It is not possible to mention by name all the individuals who worked tirelessly throughout the MASAF III preparation process. However, mention should be made of Mr Sam Kakhobwe, the Executive Director of MASAF for his guidance and management support during the design process, Mr Randson Mwadiwa from Office of the President and Cabinet for ably chairing the PPT, and all the individual members of the Team 1 that worked professionally to put together the vital inputs to this OM. The Secretarial staff of MASAF are greatly appreciated for their dedication to duty, meticulous and efficient service rendered to the PPT throughout the preparation process. 1 Mr G R Z Jere-Ministry of Finance, Mr Y E Kamphale-Ministry of Finance, Mr L Kachikopa-National Economic Council, Mr S Sentala- Department of Local Government, Mr S Chirambo-Department of Local Government, Mrs G Hiwa-Ministry of Justice, Mr C E Mandala- MASAF, Mrs I T W Manjolo-MASAF, Mrs C Kamwendo-MASAF, Mr L Mithi-MASAF, Mrs B Chibwana-MASAF, Mr E Zenengeya-MASAF, Mr E Chidzungu-MASAF. MASAF III Operational Manual Monday, 20 October
2 PREFACE This Operational Manual (OM) is about the Community Empowerment and Development Project (CEDP) to be implemented by the Malawi Social Action Fund (MASAF). CEDP will be a platform for the implementation of multi-sectoral Community Driven Development (CDD) interventions within the District Planning Framework. The OM has been prepared to provide guidance on the implementation of CEDP as well as management of the MASAF. The OM gives, among other details, the overall MASAF Programme background and rationale, mandate and legality of the MASAF, institutional and management structure, objectives and implementation strategy of the CEDP, its components, implementation arrangements within the Decentralisation Framework, project cycle processes, environmental considerations and procurement procedures. The OM is in accordance with the agreement between the Government of Malawi (GOM) and the International Development Association (IDA), and confers upon the MASAF the Government s delegated authority to manage public resources for the purpose of achieving specific developmental objectives, primarily using participatory and demand driven approaches. While aiming at delivering infrastructure facilities, availing employment opportunities, transferring cash to the poor people, and offering social support services to vulnerable persons, the underpinning thrust of the CEDP will be to cultivate and nurture a culture of transparency and accountability in those entrusted with management and delivery of public resources and services. To this effect Community Empowerment and Accountability occupies centre stage in the operations of CEDP. The implementation of CEDP will be staggered in line with the phased ten-year execution plan of the Decentralisation Programme in Malawi. Project implementation will be guided by a number of Handbooks that principally draw from this OM in terms of ensuring consistency, coordination, and coherence in project operations across the various components, and specifically that there should be consistency, transparency and accountability on the part of those involved in managing and implementing the CEDP. Operational Handbooks: 1. Community Development Programme (CDP) Handbook guides MASAF Management Unit (MU), Zone Offices, DEC and other stakeholders on the design and management procedures of the Community and Local Assembly Managed Projects. 2. Social Support Programme (SSP) Handbook provides operational guidelines to Project Implementation Agencies (PIAs), MASAF Staff and other stakeholders to assist in the management of the Social Support Projects (SSP) component. 3. Community Savings and Investment Promotion (COMSIP) Handbook: provides detailed description of the COMSIP with regard to its basic design principles, the institutional and management roles, and project cycle procedures and processes. 4. Community Project Management Handbook is a hands-on instructional guide to Project Management Committees (PMC) on how to successfully implement their projects. MASAF III Operational Manual Monday, 20 October
3 Technical Handbooks: 5. Infrastructure Handbook: provides technical guidelines on development and management of infrastructures. It has sub-handbooks that give step-by-step instructions on how to construct structures primarily for use by Technical Supervisors and Community Contractors at implementation level. 6. Procurement Handbook: provides guidelines on IDA procurement of goods, services and works at community, district and MU level. Service Handbooks: 7. Financial Management and Accounting Handbook: provides principles, procedures and controls for ensuring consistency and accountability in financial management of MASAF related activities. 8. Internal Audit Handbook: provides principles and guidelines for the implementation of the Internal Audit function within the MASAF Programme. 9. Administration and Management Handbook: details the organizational and management structure and functions, administrative procedures, job descriptions and conditions of service for MASAF staff at all levels. Accountability Handbooks: 10. Transparency and Accountability Handbook: provides overall community empowerment accountability framework for the MASAF Programme. 11. Development Communication Handbook: aims at equipping MASAF staff, district level staff and other practitioners with knowledge and skills required for Development Communication functions. 12. Management Information Systems Handbook: provides guidelines and procedures for implementing the Management Information System. 13. Research, Monitoring and Evaluation Handbook: provides guidelines for conducting research, monitoring and evaluation within MASAF at community, district and national levels, and 14. Training Handbook: provides policy and guidelines on training for MASAF staff and stakeholders involved in the management and implementation of the MASAF Programme. MASAF III Operational Manual Monday, 20 October
4 1.1 Introduction CHAPTER I: BACKGROUND AND JUSTIFICATION The Malawi Social Action Fund (MASAF) was established in 1995, as part of meeting the Government s objectives of Poverty Alleviation. From its inception to the present time, the Project has evolved in its design, structure and procedures in order to respond effectively to the demands of its clients. MASAF has been implemented in two phases, the first phase ran from 1995 to 1998 with a funding of US$56 Million from a World Bank Credit, while the second ran from 1998 to 2003 with a credit amounting to US$66 million. By July 2003, MASAF had financed a total of 4,916 projects and a variety of Capacity Enhancement activities countrywide, reaching about 5 Million Malawians. Capacity Enhancement activities included training of communities, project committees and facilitators in participatory development approaches and project management skills including asset maintenance skills. The following major targets have been achieved in the various sectors: education (4,697 classrooms, 1,481 staff houses, 96,733 desks, 7,693 Ventilated Improved Pit latrines), 5,440 communal water points (boreholes, kiosks, shallow wells), 1,118 bridges (construction and rehabilitation), 80 health units; 13,839.6 kilometres of road constructed/rehabilitated and other facilities such as postal agencies, rural markets and community halls. In addition 898,000 marginalized and vulnerable persons have benefited from the social support component of the Project. With respect to capacity building MASAF has empowered more than 92,000 people through training and other skills development initiatives. Despite these achievements and several other Government investments in social development, poverty still remains the biggest challenge to development in the country. The 2000 UNDP Human Development index ranks Malawi one of the least developed countries in the world (positioned as low as 170th out of 174 countries). An estimated 65.3 percent of the population is below the poverty line. Poverty is more endemic and widespread in the rural areas than in urban centres. It is estimated that 66.5 percent of the rural population is below the poverty line with 28.2 percent living in dire-poverty. About 54.9 percent of the urban population lives below the poverty line 2. The major factors that cause poverty in Malawi include low economic productivity of land, labour and capital. Constraints on land productivity are rapid environmental degradation and limited access to land while constraints on labour include generally low levels of education, poor health status, inadequate off-farm employment and rapid population growth. The key constraint on capital is lack of access to credit. These constraints have been further compounded by the general weak institutional capacity at various levels of society as well as policy implementation in the public sector where, for instance, weaknesses have been observed in the application of the Medium Term Expenditure Framework (MTEF) to manage and track public expenditures as desirable, and least of all to achieve value-for-money in service delivery. 3 Further to this, illiteracy levels in Malawi are still high, estimated at 40.8 percent (36.2 percent males and 54.7 percent females). Life expectancy is estimated at 37 years while infant and child mortality rates are estimated at 104 and 189 per 1,000 respectively while maternal rate has more than doubled between 1992 and 2000 from 620 to 1,200 per 100,000. An estimated 43 percent of the population does not have access to safe water supplies 4. The HIV/AIDS pandemic has aggravated the poverty situation. Like many countries in the Sub-Saharan Africa, Malawi has a 2 Malawi Integrated Household Survey Medium Terms Expenditure Framework Phase Two: Consolidation and Revitalization Government of Malawi, September, Data source for social, economic and health indicators: Malawi Demographic and Health Survey 2000 MASAF III Operational Manual Monday, 20 October
5 high HIV/AIDS prevalence, which currently stands at 15 percent nationwide with urban rates running as high as 23 percent. The pandemic has resulted in loss of life mainly of those in the productive age groups of 15 to 49 years 5. It has further created a lot of orphans and put a strain on resources in the health delivery system. 1.2 The New Policy Directions The MASAF Programme has evolved while Government was pursuing new policy initiatives to effectively address the issue of poverty in the country. These new policy directions have guided the conceptual thrust and design of MASAF III - CEDP. Central to this process were the Malawi Poverty Reduction Strategy Paper adopted in April 2002, the National Safety-Nets Strategy adopted in 2001, and the Decentralisation Policy of October The current design of the MASAF Programme has fully embraced the principles of the Community Driven Development (CDD) approach. These are: Empowering Communities, Empowering Local Governments, Re-aligning the Centre, Improving Accountability, and Building Capacity. Based on the experiences of MASAF I and II and the CDD approach, Government decided to maintain MASAF as an instrument for realising the Malawi Poverty Reduction Strategy and Millennium Development Goals (MDGs) which were agreed to at the Millennium Declaration signed for in September 2000 by 189 Heads of State including Malawi Malawi Poverty Reduction Strategy (MPRS) In April 2002, Government adopted the Malawi Poverty Reduction Strategy (MPRS) as an overarching development framework. The MPRS is now the basis for all future Government development activities and also provides the guiding framework for development assistance to the country by various development partners. The overall goal of MPRS is to achieve sustainable poverty reduction through social, economic and political empowerment of the poor. The MPRS also recognizes the importance of crosscutting issues of HIV/AIDS, Gender, Environment and Technology and how these impact on poverty. The strategy focuses on the poor as masters of their own development with Government and the development partners role being that of creating an enabling environment for the reduction of poverty. The MPRS has the following four pillars: (a) (b) (c) (d) Sustainable pro-poor economic growth economically empowering the poor by ensuring access to credit and markets, skills development and employment generation; Human capital development ensuring the poor have the health status and education to lift themselves out of poverty; Improving the quality of life for the most vulnerable providing sustainable safety nets for those who are unable to benefit from the first two pillars; Good governance, political will and mindset ensuring that the public and civil society institutions and systems protect and benefit the poor. 5 HIV/AIDs Sentinel Survey, (National AIDs Commission, 2001) MASAF III Operational Manual Monday, 20 October
6 The underlying principle of the MPRS is that sustainable development can only come about if people are empowered to take an active role in the management of their own development. In this regard, decentralization and the Medium Term Expenditure Framework (MTEF) are seen as the major management and implementation frameworks within which such development will be achieved Decentralization In October 1998, Government approved the Decentralization Policy, which called for the establishment of elected Assemblies in district and urban centres and devolution of significant central Government functions. The objectives of decentralization, as stated in the National Decentralization Policy are:- (a) (b) (c) (d) To create a democratic environment and institutions for governance and development at the local level, which will facilitate the participation of grassroots in decision-making; To eliminate dual administrations (field administration and local government) at the district level, with the aim of making the public service more efficient, economic and cost-effective; To promote accountability and good governance at the local level, in order to help Government reduce poverty; and To mobilize the masses for socio-economic development at the local level. The Decentralisation Policy provides the overall implementation framework for the MASAF Programme Community Driven Development (CDD) Within the World Bank s country portfolio, the success of MASAF has been accredited to its Community Driven Development (CDD) approach. In promoting the CDD approach MASAF has been working: directly with communities, through District-level institutions and NGOs. At the national level MASAF collaborated with Sector Ministries and Departments. However, the following deficiencies were experienced at community, district and national levels respectively:- (a) (b) (c) Participatory Rural Appraisals )were not elaborately conducted due to lack of capacity at community and district levels. Local Assemblies could not efficiently account for resources channelled through them and there existed inadequate collaboration with the Department of Local Government. Poor collaboration in ensuring sectoral recurrent support for community driven sectoral investments. MASAF III Operational Manual Monday, 20 October
7 Through a deliberate and comprehensive capacity enhancement programme MASAF will therefore, continue to support the communities, LAs and national level sectors to overcome the above shortfalls and help to improve service delivery and public accountability in line with the CDD principles. It is in this context that MASAF will support, among other aspects, new initiatives related to use of participatory techniques to appraise, monitor and evaluate projects, with particular emphasis to enhance transparence and public accountability Millennium Development Goals (MDGs) The Millennium Development Goals are a set of goals, targets and performance indicators relating to poverty reduction. The goals were adopted by all 189 United Nations member states in the 2000 Millennium Declaration. The eight goals are:- 1. Eradicating extreme poverty and hunger 2. Achieving universal primary education 3. Promoting gender equality and empowering women 4. Reducing child mortality 5. Improving maternal health 6. Combating HIV/AIDS, malaria and other diseases 7. Ensuring environmental sustainability 8. Building a global partnership for development MASAF takes cognizance of these MDGs and will use 12 out of the 48 MDG indicators (See Annex 1) that relate to defined community service packages (See Annex 2), which are a set of interventions that are manageable and sustainable at the community level. The process towards the attainment of the MDGs targets will involve implementing these community service packages within agreed sub-project delivery benchmarks and requirements of sectoral norms at the district level. The achievement of MDGs is expected to be a gradual process. MASAF will provide technical assistance to the LAs to develop baselines and to set their own targets up to MASAF and respective LAs will comply with specified reporting mechanisms stipulated in a Memorandum of Understanding (MOU) to be signed between the two parties. 1.3 The Rationale for MASAF III The MPRS calls for national action to enable people overcome constraints to their development and to foster higher broad-based growth. It observes that past reliance on top-down growth strategies paid little attention to the strengthening of the human resource capital and economic empowerment of the poor. Poverty reduction, thus remains the prime objective of the Governments development efforts. In attempting to address this problem, Government is faced with a number of development challenges, which require long-term strategic planning and interventions including:- (a) Mobilizing internal and external resources for development; (b) Prioritising developments at both national and community levels to ensure optimum allocation of resources and avoid spreading thinly the limited resources; (c) Providing social protection to the vulnerable groups in society; and MASAF III Operational Manual Monday, 20 October
8 (d) Developing human capacity at the national, district and community level to address the poverty constraints and development demands. In this regard, the MASAF Program has been designed as a long-term intervention with multisectoral objectives that subscribe to the achievement of the MPRS goal through support to:- (a) creation and management of socio-economic infrastructure and services; (b) implementing labour intensive public works for income transfers; (c) promotion of community savings and investment activities; (d) provision of productive-enhancement skills and safety-net activities for raising the welfare of vulnerable and marginalized persons; and, (e) facilitation of community empowerment and accountability management across all actors in the development process. MASAF III Operational Manual Monday, 20 October
9 CHAPTER II: THE MASAF MANDATE 2.1 Background The design of the MASAF Programme has been premised on three major factors: the challenges and experiences of the preceding MASAF phases, views from the nation-wide comprehensive stakeholder consultations and the recent Government policies of MPRS, National Safety-Nets Strategy and Decentralization. The nationwide stakeholder consultations established the need to extend and deepen the scope of MASAF II in terms of number of components, nature of activities covered as well as the need to re-focus the objectives of some of the existing components. 2.2 The MASAF Mandate and Legality MASAF III has been designed as an instrument for the attainment of Community Empowerment and Accountability (CEA). This is a long-term goal requiring institutional changes at various levels of society community, district, national as well as public and private sectors. In this regard, the design of MASAF has taken a long-term institutional perspective to allow an adequate timeframe to facilitate the harmonization of community approaches with the MPRS and the Decentralization process. The creation of a legally autonomous MASAF will not only support the development of a sustainable CEA instrument, but also ensure that: (a) A range of capacity building instruments are developed and made available for use by various agencies working with communities. (b) A full range of rules governing the delivery of resources to communities through direct financing can be enforced, with appropriate incentives and sanctions put in place to make CEA a permanent feature of public sector development interventions. (c) Adequate research is commissioned to inform the CEA processes, develop adequate monitoring and evaluation instruments, and produce regular independent status reports on community efforts towards the alleviation of poverty. In this legal framework, MASAF will assist communities develop mechanisms for relating to the three arms of government: the Executive, Judiciary, and Legislature, so that they can receive and use resources in a transparent, apolitical, and sustainable manner by tapping on the gains of social capital in communities. As a legal entity, MASAF would be able to enter into agreements with various development partners within its legal statute and the framework defined by the Government of Malawi as a reflection of its interest and commitment in fostering long-term CEA as a basis for tackling poverty in Malawi. 2.3 MASAF Funding and Implementation Plan The MASAF Programme is open to financing by different funding agencies depending on the type of activities/components they would be interested in. MASAF III Operational Manual Monday, 20 October
10 With respect to the CEDP, the Government of Malawi has agreed with the World Bank to finance this operation using the Adaptable Programme Loan (APL), which is a long-term lending facility (See Box 1). This facility has been chosen due to a number of reasons: (a) That the implementation plan for CEDP will need to take a long-term perspective in order to appropriately subscribe to the MPRS long-term goal of sustainable poverty reduction through social, economic and political empowerment of the poor, thereby ultimately contributing to the realisation of the Millennium Development Goals. (b) That, according to the Decentralisation Implementation Plan, it will take ten years for the LAs to develop adequate capacity for taking over implementation management of most activities that MASAF will have been supporting; (c) That MASAF will undergo a progressive institutional transformation marked by three critical stages corresponding to attainment of certain management capacities by the LAs to assume and effectively discharge the specific devolved sectoral functions and services to the communities in the district. (d) That LAs will follow the MTEF in their planning and budgeting process, and that projects submitted to MASAF for funding will come from the District Development Plans that clearly reflect the recurrent expenditure commitments with respect to the proposed annual investment plans. (e) That funding allocations to districts will be based on annual investment plans to be guided by indicative planning figures; and (f) That annual disbursements of funds will be based on fulfilment of sub-project delivery benchmarks that will include effective completion of previously funded projects. Box No 1: Adaptable Programme Loans (APLs) Adaptable Programme Loan (APL) Adaptable Programme Loans (APL) provide phased support for long-term development programmes. They involve a series of loans that build on the lessons learned from the previous loan(s) in the series. An APL involves agreement on (1) the phased long-term development programme supported by the loan, (2) sector policies relevant to the phase being supported, and (3) priorities for sector investments and recurrent expenditures. Progress in each phase of the programme is reviewed and evaluated, and additional analysis undertaken as necessary, before the subsequent phase can be initiated. APLs are used when sustained changes in institutions, organizations, or behaviour are key to successfully implementing a programme. Source: World Bank Adaptable Programme Lending Brochure MASAF will work with the LAs to enhance their development management capacities and thereby strengthen the phased implementation of the Decentralisation Programme. By working with and through the local level structures of Village Development Committees (VDCs) and Area Development Committees (ADCs), MASAF will aim at strengthening local governance and community participation in decision-making and management of the development process. MASAF III Operational Manual Monday, 20 October
11 CHAPTER III: DESCRIPTION OF THE PROJECT Within the overall MASAF Programme, a Community Empowerment and Development Project (CEDP) has been designed for funding by the World Bank and the Government of Malawi (GOM). The Project will be a platform for the implementation of multi-sectoral Community Driven Development (CDD) interventions in the areas of education, health, water, transport, communication, environment, natural resources, energy, agriculture, irrigation, and community services. 3.1 Development Goal and Objectives The Goal of the CEDP is to contribute towards poverty reduction by empowering local communities to manage their socio-economic development and demand accountability within the decentralised planning system for improved access to services, incomes and good governance. This is consistent with the MPRS goal of empowering the poor socially, economically and politically. The specific objectives of CEDP are as follows: (a) To improve access to and utilisation of social-economic services by the communities in urban and rural areas; (b) To transfer cash income to the poor households and individuals through creation of community assets; (c) To improve the quality of life for the most vulnerable persons; (d) To increase poor communities access to savings and investment opportunities; and (e) To develop and strengthen capacities of communities, Local Authorities and Civil Society Organisations for improved development management and local governance. 3.2 Design Principles The design principles of CEDP are as follows: (a) Autonomy and flexibility in project management, procurement and disbursement procedures; (b) Promoting accountability and transparency in resource management and service delivery at community, district and national levels; (c) Leveraging the use of public resources in favour of the poor; (d) Fostering community empowerment through direct financing and participatory project management within the District Development Planning System (DDPS); (e) Enhancing capacities of members of local development structures, facilitators and service providers for effective implementation management of development projects; MASAF III Operational Manual Monday, 20 October
12 (f) Promoting equitable distribution of resources for development on the basis of population and poverty indicators agreed with the Local Authorities. 3.3 Target Groups The CEDP will target its activities towards the following:- (a) Poor community groups (the ordinary poor). (b) Vulnerable households, especially those headed by females (the able bodied vulnerable poor). (c) Vulnerable persons such as orphans, street children, the aged, people with disabilities, and HIV/AIDS infected or affected persons (the marginalized vulnerable poor). (d) Economic active poor. (e) Implementing agencies: traditional, political and civic leaders; civil society institutions, Local Authorities and sector ministries. 3.4 The CEDP Strategy The CEDP will build on the experiences of MASAF I and II and support the realisation of the Malawi Poverty Reduction Strategy objectives through the CDD approach. Its major contribution is to enhance service delivery in respect to community empowerment and accountability as guided by the four pillars of the MPRSP. See figure 3.1 below: Figure: 3.1 CEDP WITHIN MPRS ECONOMIC EMPOWERMENT HUMAN CAPITAL DEVELOPMENT CEDP Outcomes - Enhanced community empowerment. - More responsive Local Governments. - More responsive Sector Ministries. - Economically more productive communities. - Improved development management. - Strengthened institutions. QUALITY OF LIFE GOOD GOVERNANCE MASAF will, in this strategy, support LAs to enhance their capacities and strengthen the phased Decentralisation implementation process. While the ultimate objective is to let LAs assume full oversight responsibility for community driven development, the implementation of the CEDP will adopt selective implementation management strategies for different target groups. The flow of plans and funds will also vary depending on the implementation strategy under each of the components (described in Chapter 9). MASAF III Operational Manual Monday, 20 October
13 There are four (4) major categories of agencies involved in the implementation of activities funded under the CEDP namely, Project Management Committees (PMCs) for Community Managed Projects, District Executive Committees (DECs) for Local Authority Managed Projects, and Civil Society Organizations (NGOs/CBOs) for Social Support Projects, and groups and clubs for Community Savings and Investment Promotion activities. These are described in Chapters 5-7 below Key Elements of the Strategy In order to achieve the functionality of the assets created through participatory community development efforts all CEDP funded activities will be required to comply with sectoral norms, standards and specifications. Hence LAs will be required to observe a set of benchmarks in the planning and implementation process that stipulate minimum performance requirements with a view to ensuring relevance, efficiency, effectiveness, impact and sustainability of the services on the benefiting communities. (a) Appraisal Benchmarks: Under the District Development Planning System, communities will identify projects through an open PRA process that will generate Village Action Plans (VAPs). At the beginning of CEDP it is expected that some districts will already have District Development Plans produced through a PRA process. In such districts, projects submitted for MASAF funding will be subjected to an extended PRA process, which is meant to address MASAF s specific funding requirements and determine the service levels against sector standards. Extended PRAs will go beyond the Village Action Plans to generate Community Actions Plans (CAPs), which would be appropriately targeted in respect to community needs and serviceability of those needs by the sector concerned. The appraisal benchmarks are as follows:- (i) Community Service Package Community Service Packages guide communities on activities that are eligible for funding and support under MASAF. These comprise a minimum set of interventions that are affordable and suited to community level management and maintenance within national sector norms. (ii) Sector Benchmarks Sector benchmarks drive district level appraisal and approval processes as well as national level reviews. They comprise minimum thresholds for and standards of service delivery, which will guide LAs in appraising and approving projects. (iii) Subproject Delivery Benchmarks The subprojects delivery benchmarks measure the performance of all actors involved in the implementation of all community sub projects with respect to time, cost, quality and quantity. The common thread that binds all actors in the process is the requirement to achieve agreed targets and ultimately the realisation of the MDGs. See figure 3.2 on the interfaces. MASAF III Operational Manual Monday, 20 October
14 Figure 3.2 : BENCHMARKS Communities National- Sector Ministry A Sector Benchmarks B Community Service package Benchmarks C Subprojects Delivery Benchmarks + MDGs D Sector Benchmarks Local Authorities (b) (c) Devolution of functions: Government is in the process of implementing a phased program of decentralisation to Local Authorities. This entails, among other things, devolution of sectoral functions to the districts. MASAF will likewise phase its operations and gradually relinquish its functions to respective district sector directorates over a period of time. Full project management oversight will be transferred to those Local Authorities that successfully graduate from a series of annual performance assessments within the MTEF. MASAF will assist the Local Authorities through the Transparency and Accountability Programme (TAP), to attain the necessary capacities, with emphasis on ensuring transparency and accountability in resource management and service delivery to communities. Resource allocation and targeting: Resources to the districts will be allocated using population and other poverty indicators as required by the National Local Government Finance Committee (NLGFC) resource allocation formula. At the district level, the Social Economic Profiles and other poverty indicators will guide intra-district resource targeting. MASAF III Operational Manual Monday, 20 October
15 (d) (e) (f) (g) Indicators: While MASAF I and II concentrated on tracking input, process and output indicators, MASAF III will, in addition, emphasise tracking the projects outcomes and impacts on the target groups with respect to management of service delivery, asset utilisation and maintenance. Performance indicators will play a dual function of measuring performance as well as determining the allocation of subsequent resources. Accountability: MASAF will institute and implement management support systems and mechanisms intended to make operations more effective, transparent and accountable at community, district and national levels. These systems and mechanisms will include training, research, technical standards, monitoring, evaluation, participatory community monitoring (community report and score cards), performance audit, management information, development communication, a knowledge and information sharing system and other institutional development initiatives. Social Compact: Through partnership among MASAF, UNICEF, LAs, sectors, CSOs and communities CEDP will aim to strengthen management of community services at local level and to improve their effectiveness. The social compact in MASAF will be an integral part of the TAP to be achieved through community-based participatory monitoring. Environment: MASAF will actively integrate environmental issues into project processes to ensure sustainable development management. Consequently, a deliberate strategy for mainstreaming environmental concerns into MASAF operations has been instituted (See Chapter 11). All non- afforestation subprojects funded by MASAF will have a tree-planting element. This requirement is applicable to all non-afforestation projects funded by MASAF in all components. 3.5 Components The CEDP has the following operational components: (i) Community Development Programme (CDP), comprising Community Managed Projects (CMPs) and Local Authority Managed Projects (LAMPs); (ii) Social Support Programme (SSP); (iii) Community Savings and Investment Promotion Programme (COMSIP) and (iv) Transparency and Accountability Programme (TAP). The components have been designed in such a way that they provide synergies to address poverty in a holistic manner. Figure 3.3 below illustrates the component linkages, and Chapters 5-8 describe each component in detail. MASAF III Operational Manual Monday, 20 October
16 FIGURE 3.3: Component Linkages and Information Flow Chart. MASAF BOARD MASAF Management Unit Cei CMP LAMP SSP COMSIP C M P DEC NGOs, CBOs MFI Poor beneficiaries PMC Vulnerable poor beneficiaries Marginalized and vulnerable poor Savings Clubs Savings and Investment Activities CAPACITY ENHANCEMENT Key: Flow of information Component linkages Supervision External linkages MASAF III Operational Manual Monday, 20 October
17 CHAPTER IV: INSTITUTIONAL AND MANAGEMENT STRUCTURE 4.1 Introduction The institutional and management structure of MASAF is deliberately designed to promote effective participation of beneficiaries in development management and to exert social and public accountability on those offering public services. The following sections present the institutional framework of the MASAF with descriptions of the major management functions and their respective levels of authority. Figure 4.1 below depicts the institutional and functional linkages with partner institutions. 4.2 MASAF Board There shall be a MASAF Board, which will meet at least quarterly to provide overall policy guidance on MASAF operations. The Board will have two standing committees namely, the National Technical Advisory Committee (NTAC) and National Advocacy Committee for Community Empowerment and Accountability (NACCEA). The Office of the President and Cabinet will chair the Board while the Executive Director of MASAF will be Secretary to the Board MASAF Board Membership (i) Office of the President and Cabinet (ii) Representative from the Traditional Leadership (iii) Executive Secretary for National Local Government Finance Committee (iv) Secretary to the Treasury (v) Secretary for Economic Planning and Development (vi) Independent Member (Financial) (vii) Independent Member (Legal) (viii) Executive Director MASAF Functions of the Board (a) Provide overall policy guidance on the management of the Project; (b) Provide MASAF MU with directives and guidance on the interpretation of the sector policies; (c) Approve MASAF MU s annual work plans; (d) Review quarterly and annual reports and semi-annual and annual audit reports; (e) Review, as part of the impact and sustainability of the Project, the adequacy of sector ministries budgetary allocations to cover recurrent expenditures; (f) Approve the three-year and annual Indicative Planning Figures (IPFs) (Resource Allocation) for LAs; (g) Receive and consider reports by NTAC and NACCEA. MASAF III Operational Manual Monday, 20 October
18 4.3 MASAF Board Sub-Committees National Technical Advisory Committee (NTAC) shall comprise twelve members and is chaired by the Ministry of Finance. National Advisory Committee for Community Empowerment and Accountability (NACCEA) shall comprise seven members and will be chaired by Ministry of Economic Planning and Development NTAC Membership (i) Ministry of Finance (ii) Executive Secretary for CONGOMA (iii) Ministry of Education, Science and Technology (iv) Ministry of Health and Population (v) Ministry of Water Development (vi) Ministry of Transport and Public Works (vii) Ministry of Commerce and Industry (viii) Ministry of Agriculture, Irrigation and Food Security (ix) Ministry of Gender and Community Services (x) Ministry of Local Government (xi) Representative from National Local Government Finance Committee (xii) Director of Finance MASAF (Secretary) Functions of NTAC (a) (b) (c) (d) To review and recommend to the Board approval of projects; To advise on sector devolution action plans; To ensure adherence to sector norms and standards; To ensure adequate budgetary provision for recurrent costs NACCEA Membership (i) Ministry of Economic Planning and Development (ii) Representative from Decentralisation Secretariat (iii) Director for Centre for Social Research (iv) Representative from UNICEF (v) Representative from DFID (vi) Representative from Gender Network (vii) Director of TAP MASAF (Secretary) Functions of NACCEA (a) (b) (c) (d) (e) To review the M&E reports; To monitor adherence to accountability benchmarks; To disseminate results of community, LA and sector performance in respect to the attainment of the selected MDG indicators; To recommend to the Board graduation of successful LAs to assume full MASAF functions; To determine and recommend LA capacity building requirements. MASAF III Operational Manual Monday, 20 October
19 FIGURE 4.1: MASAF INSTITUTIONAL AND FUNCTIONAL LINKAGES FRAMEWORK GOVERNMENT OF MALAWI (OPC) MINISTRY OF ECONOMIC PLANNING & DEV. Technical oversight of MASAF MINISTRY OF FINANCE Donor coordinating Reporting Disbursements BOARD Policy guidance Approve IPFs Approval of workplans Review progress and special reports NTAC Review projects Recommend for Board s approval NACCEA Review M&E reports Monitor adherence to accountability benchmarks SECTOR MINISTRY Enforcement of sectoral norms and standards Provide sector benchmarks Policy direction and monitoring MASAF/MU Management Evaluation Funding approval Internal Audit LA Approve resource targeting and projects Oversee projects progress and accountability DEC Appraise projects Implement LAMPs Supervise CMPs ZONE LEVEL Technical backstopping to LAs Ensure accountability at LA and Community level Link LA to MU on monitoring, evaluation and reporting ADC & VDC Project identification Preparation Implementation Accounting and reporting COMMUNITY AEC Facilitate general and extended PRAs Monitoring implementatio n progress Supervision FIELD OFFICE Facilitate quality control and timely reporting MASAF III Operational Manual Monday, 20 October
20 4.4 The MASAF Management Unit The MASAF shall have a Management Unit (MU) that will be responsible for the day-to-day operations of the Fund governed by the provisions of the Operational Manual, and other appropriate legal instruments agreed to between the Government of Malawi (GOM) and the donor. The MASAF MU will be supported by three Zone Offices (ZO) and nine Field Offices (FO). The ZO and FO will provide technical backstopping to LAs. The Executive Director is the Chief Executive and is responsible for overall management of the Programme including liaison with Government and donors. The ED will be supported by five Directors responsible for CDP, SSP, TAP, Finance and Internal Audit. See Figures 4.2, 4.3 and 4.4 for the institutional structure, management functions and staff compliment of the MASAF respectively. MASAF III Operational Manual Monday, 20 October
21 FIGURE 4.2: MASAF INSTITUTIONAL STRUCTURE 6 MASAF BOARD EXECUTIVE DIRECTOR OFFICE MANAGER CDP SSP TAP FIN IA ADMIN, HRM & HRD PROCURE MENT ZONES COMSIP DCU MIS TS ME & R TRAINI NG FIELD OFFICE LOCAL AUTHORITIES KEY Technical reporting Administrative reporting Staff reporting 6 KEY: AA: Administrative Assistant; CDP: Community Development Programme; COMSIP: Community Savings and Investment Program; DCU: Development Communication Unit; ED: Executive Director; HRM: Human Resources Management; IT: Information Technology; IA: Internal Audit; JO: Justification Officer; MIS: Management Information System; ME&R: Monitoring, Evaluation and Research; PO: Projects Officer; TS: SSP: Social Support Programme; Technical Services; TO: Technical Officer; TAP: Transparency and Accountability Programme; ZAA: Zone Accounts Assistant; ZOM: Zone Operations Manager; MASAF III Operational Manual Monday, 20 October
22 FIGURE 4.3: MASAF MANAGEMENT STRUCTURE AND FUNCTIONS MASAF BOARD - Provide overall policy guidance on the management of the Project; - Approve MASAF MU s annual work plans; - Review quarterly and annual reports and semi-annual and annual audit reports; - To receive and consider committees reports by NTAC and NACCEA. EXECUTIVE DIRECTOR - Liaison with Government and Donors - Provide overall executive direction and leadership - Office Management - Staff appointment, etc. CDP - Develop strategic plans and coordination of CDP operations - Liaison with LAs, Zones Sectors and other stakeholders - Overall management of the programme portfolio SSP - Develop strategic plans and coordination of SSP operations - Liaison with PIA, Zones LAs and other stakeholders. - Overall management of the programme portfolio COMSIP - Facilitating development of policies and procedures - Managing portfolio development and performance improvement. TAP - Direct MASAF s cross functional programme and institutional development strategies/needs. - Manage strategic linkages with stakeholders. - Facilitate knowledge management and sharing. FINANCE - Administering the DCA - Controlling disbursements - Provide financial advice INTERNAL AUDIT - Ensure internal organizational efficiencies - Conduct financial and management audits DCU - Initiating Development Communication policy and strategy - Maintaining media and Public Relations - Managing documentation and the Resource Centre. MISU - Managing IT resources - Initiating and manage the various subsystems that constitute the MASAF MIS - Train users. - Manage Local Area - Networks (LAN). ENGINEERING SERVICES - Coordinate production of technical design documents. - Quality control - Liaison with sector ministries at national level - Backstopping field engineers on technological options. ZONE OFFICE - Offer technical backstopping to LAs - Coordinate with DEC - Link LAs and MU on programme implementation and performance. - Ensure accountability at district and community levels. M E&R - Initiating formulation of M&E and Research Policies, Systems and Procedures. - Planning & Coordinating Research, M&E activities. - Reviewing progress reports and advising management on progress towards performance targets. TRAINING - Undertake capacity and institutional development audit - Coordinate and facilitate implementation of the training programme. ADMIN, HRM & HRD - Develop and manage HRM & D policies & systems. - Administering conditions of service. - Coordinate staff development & training. FIELD OFFICE/DISTRICT - Facilitate quality control and timely reporting PROCUREMENT - Coordinate development of procurement plan - Solicit procurement contracts & ensure their proper administration - Monitor & advise on all procurement activities. OFFICE MANAGEMENT - Manage communication between ED and Board, and ED and Management - Manage MASAF Website and public relations. MASAF III Operational Manual Monday, 20 October
23 FIGURE 4.4: MASAF MANAGEMENT STRUCTURE: STAFF COMPLIMENT EXECUTIVE DIRECTOR 1 x Office Manager 1 x Personal Assistant ADMIN, HRM & HRD 1 x AHRM 1 x AO 1 x AA/Personnel 9 x AAs 2 x RCs 10 x Drivers 1 x Receptionist 1 x Commissionaire 1 x Reprographic Asst. 3 x OA PROCUREMENT 1 x PM CDP 1 x Director 2 x Assistant Directors SSP 1 x Director 1 x Assistant Director COMSIP 1 x Manager 1 x Assistant Manager TAP 1 x Director FINANCE 1 x Director 2 x Accountants 2 x Ass Accts 4 x Accts Ass INTERNAL AUDIT 1 x Director 1 x Audit Manager 4 x Auditors DCU 1 x DC Specialist 2 x DC Officer MISU 1 x MIS Specialist 1 x MIS Officer 1 x MIS Assistant ENGINEERING SERVICES 1 x Senior Engineer ZONE OFFICE X 3 1 x Zone Operations Manager 2 x PRA/IEC Officers 2 x Engineers 1 x Accountant 1 x M&E Officer 1 x MIS Officer 1 x Justification Officer 2 x AAs 5 x Drivers 1 x OA M E & R 1 x ME&R Specialist 1 x Research Officer TRAINING 1 x Training Manager FIELD OFFICE X 9 9 x Technical Officers 9 x Office Assistants LOCAL AUTHORITIES 40 Justification Assistants *20 Justification Assistants funded by Department For International Development MASAF III Operational Manual Monday, 20 October
24 4.5 Structure of Zone Offices MASAF will operate with three (3) Zones and nine (9) Field Offices based on scaled down current Zones, to support Local Authorities with technical and management backstopping as LAs deliver according to agreed benchmarks. The three Zone Offices will provide a comprehensive staff compliment to work directly with Local Authorities through DECs. The Field Offices will fold up as Local Authorities graduate to fully take over the management of MASAF-CEDP operations. Figure 4.5: Zone Structure for MASAF 3-CEDP 1 x ZONE OPERATIONS MANAGER 2 x PRA/IEC OFFICERS 1 x ZONE ACCOUNTANT 1 x MIS OFFICER 2 x ENGINEERS 1 x M&E OFFICER 1 x JUSTIFICATION OFFICER 2 x AA 1 x OA 5 x DRIVERS FIELD OFFICE 1 x Technical Officer 1 x Driver 1 x Office Assistant LOCAL AUTHORITY 1 x Justification Assistant per Assembly MASAF III Operational Manual Monday, 20 October
25 Each of the three Zone Offices will have the following staff compliment:- a Zone Operations Manager supported by two PRA/IEC Officers, one Planning/M&E Officer, one MIS Officer, one Zone Accountant, two Engineers, one Justification Officer, two Administrative Assistants, five Drivers and one Office Assistant. Box No. 2: Zones, Field Offices, and Local Authority coverage Zone Office Field Offices Local Authorities covered Mzuzu Karonga Chitipa, Karonga, Karonga Town. Lilongwe Blantyre Mzuzu Kasungu Salima Lilongwe Liwonde Zomba Blantyre Luchenza M mbelwa, Mzuzu City, Rumphi, Nkhatabay and Likoma. Kasungu, Kasungu Town, Ntchisi and Nkhotakota. Salima, Salima Town, Dedza, Dedza Town, Ntcheu. Lilongwe City, Lilongwe Rural, Dowa, Mchinji. Mangochi, Mangochi Town, Machinga, Liwonde Town, Balaka, and Balaka Town. Zomba, Zomba Municipality, Chiradzulu and Phalombe. Blantyre City, Blantyre Rural, Mwanza, Neno, Chikwawa and Nsanje. Mulanje, Luchenza Town, Thyolo Functions and Responsibilities of Zone Offices The roles of the zones are to (i) offer technical backstopping to LAs to deliver according to agreed benchmarks; (ii) ensure accountability at district and community levels; and (iii) link the districts to the MU on monitoring, evaluation, and reporting. Specifically, Zone and Field Office staff will:- (a) (b) (c) (d) (e) (f) (g) (h) (i) facilitate extended PRAs; backstop district financial management; supervise community accountability systems; facilitate training of project implementing agencies; ensure project launching procedures; facilitate development communication (IEC); ensure adherence to community contracting and procurement procedures; supervise, monitor and evaluate programme performance; facilitate participatory community monitoring and reporting; 4.6 Sectoral Linkages MASAF will work with national level sectoral departments with respect to policy direction, and enforcement of standards and norms. Key line ministries will be represented in the technical committees of the MASAF Board. At the district level MASAF will work with the District Executive Committee (DEC) that includes all sectoral heads at that level. Each sector is expected to spell out certain benchmarks as standards for LA performance within the MTEF. A Memorandum of Understanding (MOU) MASAF III Operational Manual Monday, 20 October
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