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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