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Investor Presentaiton

Uganda introduced performance contracting & a budget monitoring & reporting unit geared towards the effective implementation of government projects Uganda חיווי Context MINISTRY OF FINANCE, PLANNING AND ECONOMIC DEVELOPMENT, UGANDA Lack of accountability mechanisms for government funded projects Sector spending units had no Proper work plans with quarterly plan and resource needs Ownership for misallocation of funds or not achieving stated goals What did Uganda country do? Created performance reporting contracting to monitor how different sector indicators¹ fair against stated targets over time · • . Performance contract signed between spending agency & Ministry of Finance (MoF2), declaring use of funds Annual performance contract states quarterly work plan Each quarterly performance report³ submitted to MoF outlining progress against work plan Launched budget monitoring & accountability unit to monitor prio. projects . Physically inspects & verify info. in performance contracts & reports Draw up semi-annual & annual performance reports Research reasons for underperformance & communicates with Ministry 1. Short, medium, long term indicators listed in the budget framework 2. Ministry of Finance; 3. Covers financial and physical performance Source: Uganda Ministry of Finance article; BCG Analysis Key successes Helps improve accountability Frequent measuring of progress against work plan Regular inspections by budget & monitoring unit Sectors required to submit written response explaining underperformance Annual performance report used to influence proceeding years budget cycle This helps improve service delivery to projects that are efficient at allocating budgets & reaching stated goals Learnings for Plateau State Look to introduce performance contracting for sector spending units Detail quarterly work plan & key KPI's that can be measured KPI's should include financial & physical plans & goals • Ensure they have the skills & tools to produce these reports Create dedicated monitoring & accountability unit for priority projects To do physical inspections Helps to verify progress of projects versus what sectors report Ensures the semi-annual & annual perf. report they give to MoF² is credible to use as a base for budget decision making Find ways to incentivize key projects underperformance vs. always cutting back on spend allocation 260 Copyright 2019 by Boston Consulting Group. All rights reserved.
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