Presentation of study reports of 5 partner cities in bangladesh by md zahurul islam

PRESENTATION OF STUDY REPORTS OF 5 PARTNER CITY’S RIUD PROJECT, GIZ VENUE : ACCUA MEETING ROOM,GIZ, DHAKA WEDNESDAY, OCTOBER 06, 2016 10:00 AM – 12:00 AM PRESENTERS: MD. ZAHURUL ISLAM, CONSULTANT

OUTLINES OF THE PRESENTATION PART 1:Introduction 1.1 Study purpose 1.2 Study areas 1.3 Study methodologies 1.4 Study limitations 1.5Participants attended PART 2: City wise Consultant’s activities PART 3: Outcomes of 5 Study Reports 3.1 Study findings 3.2 Challenges & Way forwards 2

PART 1: Introduction

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1.1 STUDY PURPOSE

Capacity Needs Assessment of Financial Management of 5 partner cities in Organization Development (OD) aspects

To assess: Key capacity gaps

To identify: Key capacity constraints

To determine: Activities to overcome capacity constraints

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1.2 STUDY AREAS:

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1.3 STUDY METHODOLOGIES FGDs

Observation

Documents Reviews

CDNA outcome Reports

KIIs

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1.4 LIMITATIONS TO STUDY Limited scope of work within the ToR Limited time, in particular for the field days to gather information; Another limitation of this study was the sensitivity of the respondents to share information.

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1.5 WHO ATTENDED IN THE STUDIES At City Corporation (CC) level

At Paurashava (PS) level

Interview with Mayor, CEO, Secretary , Chief Engineer.

Interview with Mayor, Secretary , Executive Engineer.

FGDs with officials concerning to Revenues; Public works & others ; Accounts ; and , City Council Members/SC Members.

FGDs with officials concerning to Revenues, Civil works & others; Accounts; and City Council Members/ SC Members.

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PART 2: CITY WISE CONSULTANT’S ACTIVITIES

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2.1 VISIT AT SATKHIRA PS Visit Date : 09-11 May,2016 Report submit : 23 May’2016 Key activities done: 4 FGDs ( 34 participants) 3 Interviews 5 FYs budget reviews

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2.2 VISIT AT BARISAL CC Visit date

: 7-9 June,2016

Report submit :

19 June’2016

Key activities done: 4 FGDs ( 44 participants) 4 Interviews 5 FYs budget reviews

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2.3 VISIT AT KHULNA CC Visit date : 26-28 July,2016

Report submit :August 4, 2016 Key activities done: 4 Stakeholder mapping sessions 4 FGDs ( 29 participants) 4 Interviews 6 FYs Budget reviews

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2.4 VISIT AT RAJSHAHI CC

Visit date : 16-18 Aug’2016

Report submit: 25 Aug’2016 Key activities done: 4 Stakeholders mapping sessions 4 FGDs ( 30 participants) 3 Interviews 3 FYs budget reviews

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2.5 VISIT AT SIRAJGONJ PS

Visit date

: 29-31 Aug,2016

Report submit : 18 Sep,2016 Key activities done: 4 Stakeholders mapping sessions 4 FGDs ( 32 participants) 3 Interviews

3 FY Budget reviews

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2.6 CONSULTANT’S TOTAL ACTIVITIES AT A GLANCE

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Photo Display, just 2 minutes…….please

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Photo display (cont‌.)

Stakeholders Mapping Khulna CC Rajshahi CC Sirajgonj PS

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Stakeholder mapping: Revenue

Khulna CC

Sirajgonj PS

Rajshahi CC 18

Stakeholders Mapping: Accounts Section

Khulna CC

Sirajgonj PS

Rajshahi CC 19

Stakeholders Mapping: Civil works & others

Khulna CC

Sirajgonj PS

Rajshahi CC 20

Sirajgonj PS

Khulna CC

Rajshahi CC 21

Photo display (cont‌.)

FGDs in 5 Partner Cities with: Revenue Officials Accounts Officials Public Works & other officials City Council members

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FGD with Revenue Officials

Rajshahi CC

Barisal CC

Khulna CC

Satkhira PS

Sirajgonj PS

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FGDs with Accounts Officials

Khulna CC Rajshahi CC

Sirajgonj PS

Barisal CC

Satkhira PS

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FGD with Civil works & other officials

Sirajgonj PS

Khulna CC

Rajshahi CC

Barisal CC Satkhira PS

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FGD with City Council Members

Sirajgonj PS

Rajshahi CC

Khulna CC

Satkhira PS Barisal CC

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Photo display (cont….)

KII in 5 Partner Cities Khulna CC Rajshahi CC Barisal CC Satkhira PS Sirajgonj PS

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Interview at Khulna CC

Interview with CEO, KCC

Interview with Deputy Secretary & Secretary, KCC Interview with Hon’ble Mayor, KCC

Interview with Chairperson, Finance & Est. Standing Committee, KCC

Interviews at Rajshahi CC

Interview with CEO (in-charge), RCC

Interview with Hon’ble Mayor, RCC

Interview with Chief Engineer, RCC

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Interview at Barisal CC

Interview with CEO, BCC

Interview with Executive Magistrate & Secretary In-charge, BCC Interview with Hon’ble Mayor, BCC Interview with Chief Engineer, BCC

Interviews at Satkhira PS

Interview with Executive Engineer, Satkhira PS

Interview with Hon’ble, Satkhira PS Interview with Secretary, Satkhira PS

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Interviews at Sirajgonj PS

Interview with Executive Engineer, Sirajgonj PS

Interview with Hon’ble Mayor, Sirajgonj PS

Interview with Secretary, Sirajgonj PS

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PART 3: 3.1 STUDY FINDINGS 3.2 CHALLENGES & WAY FORWARDS

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PART 3: 3.1 STUDY FINDINGS

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3.1.1 STUDY FINDINGS : ACCOUNTS & REPORTING Key findings

Barisal CC

Khulna CC

Rajshahi CC

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Accounts maintained manually

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Accounts maintained on cash basis single entry system

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Month end financial statement are rarely prepared

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Analytical financial reports not prepared

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Movement of funds neither tracked systematically

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Month end financial report not regularly submitted to the council meeting

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Sirajgonj PS

Satkhira PS

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3.1.2 STUDY FINDINGS : INTERNAL CONTROL & AUDITING Key findings

Barisal CC

Khuln a CC

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Limited understanding on internal control procedures and checklist

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Limited works carried out in areas of strengthening internal control

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Poor Internal checking and lack of supervision

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Separate internal audit department/section or team not in places

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Functions of audit standing committee not visible as mandate by Act

Rajsha hi CC

Sirajgo njPS

Satkhira PS

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3.1.3 STUDY FINDINGS: OWN SOURCES REVENUE S Key findings

Barisal CC

Khuln a CC

Rajsh ahiCC

Sirajgo njPS

Satkhira PS

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Valuation of holding with very low rate than the market

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Majority of review appeals settled down with discount

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Limited efforts to mobilize revenues from existing and new sources

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Minimum visible linkage between taxes and services

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3.1.4 STUDY FINDINGS : EXPENDITURE PRIORITIZATION Key findings

Barisa l CC

Khul na CC

Rajs hahi CC

Sirajg onj PS

Satkhira PS

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Poor internal & external communication to identify the expenditure priorities

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System not institutionalized in expenditure prioritization

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Lack of strategic plan /set up in identifying community priorities

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3.1.5 STUDY FINDINGS: BUDGET PREPARATION Key findings

Barisal CC

Khuln a CC

Rajsh ahiCC

Sirajgo njPS

Satkhira PS

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Preparation of budget on incremental basis

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Internal participation and consultation throughout the organization not adequate

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PART 3 (CONT.): 3.2 CHALLENGES & WAY FORWARDS

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3.2.1 MAJOR CHALLENGES AND WAY FORWARDS: ACCOUNTS & REPORTING Findings

Challenges

Individual

Organizational

Manual basis accounting

Create opportunity of human errors

Departmental performance hampered

Single entry cash basis accounting

Accounts professionals not being developed

Financial analytical report not prepared

Recommendation for way forwards Need accounting software

Need training on accrual basis double entry accounting Accounting information with its multipurpose uses not disseminated

Need analytical reports for decision makings

Movement of funds not tracked out

Bottlenecks of individual works

Burden with liabilities

budget and fund availability checking before expenditure initiatives

Deficit of funds

Losses of selfmotivation and pro-activeness

Losses of creditworthiness

Need smart revenue plan 41

3.2.2 MAJOR CHALLENGES AND WAY FORWARDS: INTERNAL CONTROL AND AUDITING Findings

Challenges Individual

Organizational

Limited understanding on Internal control

Errors and frauds not to be prevented and detected

Non-acceptance of internal control and audit

Not independent internal audit function

Create conflict of interest

Standing committee not capable of doing audit works

Lack of seriousness on audit

Recommendation for way forwards Written internal control checklists and procedures need to be informed all concerns Separate internal audit unit/team; Develop guidelines and tools

Non-activeness of audit standing committee

Technical know-how and logistic support to be ensured

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3.2.3 MAJOR CHALLENGES AND WAY FORWARDS: OWN SOURCE REVENUE INCOMES Findings

Under valuation of taxes Descending collection efficiency

Shortage of technical initiatives to identify new sources and/or to expand existing sources

Challenges

Recommendation for way forwards

Individual

Organizational

Lack of selfmotivation

Proper & timely assessment initiatives

Need more familiar with taxes rules

Dealing with problems with other departments fewer practices

Status review by standing committee and agenda discussion in the council meeting

No strategic planning

Existing rules and procedure to be disseminated so that technical interventions are felt necessary.

Knowledge and skill gap

Shortage of skill manpower

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3.2.4 MAJOR CHALLENGES AND WAY FORWARDS: EXPENDITURE PRIORITIZATION Findings

Challenges

Recommendation for way forwards

Individual

Organizational

Knowledge and skill gap

No policy guidelines in priority setting

Need Up-ward and down ward communication in identifying community needs

Procedures for expenditure prioritizing not started very early stage in budget preparation

No policy guidelines in priority setting

Priorities are to be collected in a topdown approach very early in the budget preparation process

Lack of strategic planning or field setup to identify community needs

Department have no own priorities

Poor communication to identify expenditure priorities

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3.2.5 MAJOR CHALLENGES AND WAY FORWARDS: BUDGET PREPARATION Findings

Challenges

Recommendation for way forwards

Individual

Organizational

Consultative sharing between employees and public representatives in preparation of budget fewer practices

Person loses their empowerment in the organization

Department loses their encouragement to contribute group objectives and shared responsibilities

Public representatives and employees to be more interested in participatory budgeting

Preparation of budget on incremental basis

Employees and public representatives not interested to give much time in budget preparation

Department have no own priorities

Public representatives and employees to be more interested in priority-driven budgeting

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Prepared by: Md. Zahurul Islam Consultant, Organization Capacity Development in Urban Local Government Institutions, Resilient and Inclusive Urban Development (RIUD) GIZ, Dhaka Email: zahir.ucep@yahoo.com

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