Download Resource Tracking Template_Abuja

Expenditure & Budget Tracking Process
COUNTRY: NIGERIA
Overview of Immunization Expenditure
Tracking Process in NIGERIA
•
•
-
Summary of existing country expenditure tracking process for the routine immunization program
Appropriation/Financial Resource Requirements (FRR)
Recording, analysis and reporting of expenditure
Budget Performance Review
Statutory Audit
Dimensions of expenditure tracking
Vouching & Journalizing expenditure,
Preparation of Ledgers & Trial Balance
Reporting of expenditure through the statutory financial statements,
Audit of financial statement/report by the Auditor General and make recommendations to
National/state Assembly Committee on Public Accounts (PAC),
- PAC conduct thorough investigations into any case(s) of abuse or misappropriation with a view to
recovering any funds lost.
• Bottlenecks and solutions
THE BUDGET CYCLE - OVERVIEW
5. BUDGET
MONITORING &
1. MTSS/MTEF
PREPARATION
& APPROVAL
EVALUATION
-warrants/release of
funds
-monitoring
4. BBUDGET
IMPLEMENTATION
(Appropriation Act,
budget announcement)
2. PREPARATION
OF BUDGET
PROPOSAL BY
MDAs (using
MTEF)
3. BUDGET PROPOSAL
DEFENCE & APPROVAL
(Ministry, Executive,
Legislative)
Expenditure Tracking at LGA/State/Federal Levels
Existing mechanisms
Responsibility
1.
Collection & reporting of immunization expenditures at each level:
Federal/State: The Director of Finance and Accounts,
LGA: Treasurer of the Local Government
1.
Mechanisms

Reporting forms for capturing immunization expenditures include:
• Vouchers, Departmental Vote Allocation book, Cashbook, Journal books and Ledgers.
Aggregate expenditure is published in the Annual statutory financial statements.
Immunization expenditure easily identified in records
• Expenditures are reported separately since immunization exists as a separate line item in
the annual appropriation Act.
3. Technology
 Reporting and analysis of immunization expenditures are conducted with PCs using
Microsoft excel and other appropriate software
•
4. Sources
 System distinguishes government from other immunization
expenditures (domestic private, external)
The annual statutory financial statements contain expenditure on
government fund only.
5. Shared Costs
No shared cost approach exists for vehicles and human resources
6. Frequency
Expenditures are reported and analyzed at each level annually.
WHO/UNICEF Joint Reporting Form (JRF) Process
Some Issues to Consider
1. Importance. The annual JRF financial reports are the only direct
measure of country immunization investments.
2. Responsibility

Financial section of the WHO/UNICEF Joint Reporting Form (JRF) is completed by
the ICC Finance Committee
 Review and submission to the WHO Country Office: Inter Agency
Coordinating Committee (ICC)
3. Strategy


Identification and compilation of public routine immunization expenditures is
accomplished by collating expenditure returns from the national, states and local
government/ward levels.
Sources of expenditure data used include Paid vouchers, adjustment vouchers,
Journal, ledger and Trial balance.
4. Under-reporting
a. The current reporting system does not capture shared costs e.g. personnel cost.
b. Can be resolved by apportioning costs using acceptable time ratios or number of
immunization personnel at each level
Sabin SIF budget flow analysis
Some Issues to Consider
• Purpose. To document and analyze annual immunization budget
flows
• Utility. Reveals bottlenecks in the annual budget execution,
documents budget credibility. Provides unaudited information for
empirical budgeting, advocacy, management improvement.
• Users. MoH EPI teams. (Data are not externally reported.)
• Frequency. Ideally performed each year.
Sabin SIF budget flow analysis tool
Country:
Fiscal Year:
Budget
Processes
Description
Start: XXX
Accounting concepts
Amount in US$
End: XXX
Local Currency
exchange rate to US$ =
1
The initial projected immunization program budget (from current
cMYP, amount of routine recurrent government projected costs,
Spreadsheet 4. Financing)
Projected government R.I. budget
2
The adjusted proposed immunization budget after review by the
Ministry of Health, Council of Ministers or other budget review
institution(s). The amount that was submitted for parliamentary
approval.
Immunization budget proposed by MOH
3
The final immunization budget that was approved by parliament.
Immunization budget approved by parliament
4
Additional in-year funds approved for immunization. Any additional
(supplemental) increases to the budget during the fiscal year.
Total in-year immunization budget increase(s) approved
by parliament
Cash Hoarding
5
The amount of funds disbursed by Treasury to the Ministry of Health
for immunization.
Amount disbursed against approved immunization
budget by Treasury to MOH
Misclassification
6
Amount of funds in Box 5 actually allocated by the Ministry of Health
to the immunization program.
Amount of disbursed budget actually allocated to
immunization program
Budget Credibility
Phase-IV:
Expenditure
7
Amount of actual public routine immunization program expenditures.
Includes expenditures against in-year supplementary budgets.
Total immunization expenditures as of end fiscal year
Phase-V:
Reporting
8
Amount of government routine EPI expenditures reported for
Indicator 6730 of the WHO/UNICEF Joint Reporting Form (JRF) for the
reporting year.
Phase-I:
Proposed
Budget
Phase-II:
Approved
Budget
Public Expenditure and Financing
Accountability (PEFA)
Framework
Indicators
PEFA Indicator Key
Formula Guide
[ ((Box 3 + Box 4) - Box 5) /(Box 3+ Box 4) ] x 100
[ (Box 5 - Box 6) / Box 5 ] x 100
Phase-III:
Disbursement
Absorptive Capacity
Reporting Accuracy
(Box 7 /(Box 3+ Box 4 ) x 100
(Box 7 / Box 6 ) x 100
If Box 7 > Box 8, then (Box 8/ Box 7) x 100
If Box 7 < Box 8, then (Box 7/ Box 8) x 100
Bottlenecks & Solutions
• Areas for Improvement.
• Timely implementation of budget cycle: delay in passing appropriation bill,
cumbersome procurement procedures –delay in project excution
• Tracking of sub-national expenditures needs improvement to be more robust and
transparent
• No cash backing and release of budgeted funds
• Potential Solutions
• Introducing public expenditure tracking survey, learning from ongoing pilot in Ekiti and
Niger States.
• Zero budgeting method as opposed to current incremental budgeting method
• Bottom – up approach in planning, budgeting & tracking
• Institute transparent and reproducible accounting system at all levels
• Regular internal and external supervision
• Transiting from paper based system to electronic system
• Cash backing dependent on macroeconomic environment of the country.
Implementing Authority (State and non State Actors)
• Federal: Federal Ministry of Finance (Budget Office of the Federation),
National Assembly, CSOs etc
• State: Budget & Planning commission, State House of Assembly, CSOs, etc
• LGA: Needs to introduce a tracking mechanism that will operate/function at
this level
• Health facility: Needs to introduce a tracking mechanism that will
operate/function at this level
INNOVATIONS
• Introduction of Single Treasury Accounts (TSA)
• Introduction of new planning horizon new budgeting technique (ZBB)
• ZBB is a method of budgeting in which all expenses must be justified for
each new period, (every year)
Starts from a "zero base"
Analyzes every function within an organization for its needs and costs
Often builds budgets around what is needed for the upcoming year
regardless of whether the budget is higher or lower than the previous one
• Clearly linked to Government’s policy priorities
• Allows top-level strategic goals to be linked to the budgeting process by
• Tying them to specific functional areas of the organization, where Costs can
be first grouped
• ZBB is an improvement on the envelope system,
• The flexibility of the concept allows for easy adaptation to country
peculiarities
INNOVATIONS
• Introduction of Single Treasury Accounts (TSA)
• Introduction of new planning horizon new budgeting technique (ZBB)
• ZBB is a method of budgeting in which all expenses must be justified for
each new period, (every year)
Starts from a "zero base"
Analyzes every function within an organization for its needs and costs
Often builds budgets around what is needed for the upcoming year
regardless of whether the budget is higher or lower than the previous one
• Clearly linked to Government’s policy priorities
• Allows top-level strategic goals to be linked to the budgeting process by
• Tying them to specific functional areas of the organization, where Costs can
be first grouped
• ZBB is an improvement on the envelope system,
• The flexibility of the concept allows for easy adaptation to country
peculiarities
Next Steps
• Engagement of implementing authority to introduce proposed solution
• Proper advocacy and sensitization of the relevant stakeholders with involvement of
CSOs
• Peer review mechanism for states (using the PHC scorecard)
• Awareness creation through media and communication
• Regular policy and technical briefs
• Community sensitization to create demand for immunization services
THANK YOU