USAID/ Honduras Local Governance Activity Quarterly Performance and Financial Report January 1, 2019 – March 31, 2019

Activity Title: Honduras Local Governance Activity Sponsoring USAID Office: Democracy and Governance Office IDIQ Number: AID-OAA-1-14-00061 Task Order Number: AID-522-TO-17-00001 Contractor: DAI Global LLC. Date of Submission: March 31, 2019

This report is made possible by the generous support of the American People through the United States Agency for International Development (USAID). The contents are the responsibility of DAI and do not necessarily reflect the views of USAID or the United States Government.

ii | FY 2019 // QPFR 2 TABLE OF CONTENTS

Executive summary 1 Result 1 - Civil Society Influence, Through Evidence Increased 2 Sub-Result 1.1 Citizen participation in service delivery decision-making strengthened 2 Sub Result 1.2 Evidence-based citizen oversight of service delivery increased 4 Result 2 Local Service Provider Performance Improved 5 Sub Result 2.1 Accountability of Service Providers Increased 5 Sub Result 2.2: Service Provider’s Capacity to Manage Service Delivery Improved 10 Sub Result 2.3 Local Government administrative management capacity increased 17 Coordination with USAID IMs, IPs and Other Donors 20 Crosscutting Themes 22 Collaborating, Learning and Adapting (CLA) Agenda 25 Financial Report 30 Annex 1: Technical Assistance Summary by Sector (FY 2019 Q2) 32 Annex 2: Progress by Sub-Activity, divided by Sector 33 Annex 3: Municipal Regulation on Patronatos – La Labor 34 Annex 4: Total RENTCAM registrations supported by the Activity since FY 2017 34 Annex 5: Status of Infrastructure Designs 35 Annex 6: Lower Level Indicators 35 Annex 7: Coordination with other IMs (Lower Level Indicator 10) 35 Annex 8: Success Stories 35 Annex 9: Consolidated CLA report (Spanish) 36

iii | FY 2019 // QPFR 2 ACRONYMS

ACS Alliance for the Dry Corridor ACJ* Alliance for Christian Youth AIN -C* Integral Community Attention to Childhood AJAAM* Association of Municipal Water Management Boards AMHON* Association of Honduran Municipalities APF* Parents and Family Association ASJ* Alliance for a More Just Society ATM Municipal Technical Assistants CAM* law Municipal Administration Career law CEN Nutritional Training Centers CEB* Basic Education Center CCT* Citizen Transparency Commissions CLA Collaborating, Learning and Adapting CM Municipal Commissioner COMAS* Municipal Commissions of Water and Sanitation COMIPRONIL* Mixed Co -op of North Intibucá Producers CONADEH* National Commissioner of Human Rights CONASA* National Advisory on Water and Sanitation CONEANFO* National Commission for Non -Formal Education in Honduras CSO Civil Society Organization DDE* Departmental Education Directorate DME* Municipal Education Directorate DME* Municipal Education Directorate DO2 Development Objective 2 DR Director of School Networks EROC* Regional Space for western Honduras ERSAPS* Regulating Entity for Potable Water and Sanitation Services FHIS* Honduran Fund for Social Investment FUNDAUNAH* Foundation of the National Autonomous University of Honduras FUNIDE Initibucan Foundation for Development* FY Fiscal Year GEMA* Governance in Ecosystems, Livelihoods, and Water Activity

iv | FY 2019 // QPFR 2 HLG Honduras Local Governance Activity HR Human Resources HRA Honduras Reading Activity IAIP* Institute of Access to Public Information ICT Information and Communications Technology IDECOAS* Institute for Community Development, Water and Sanitation IM Implementing Mechanism INAM* National Women’s Institute IP Implementing Partner IQS Indefinite Quantity Subcontract ISO International Organization for Standardization IT Information Technology LED Local Economic Development LEPP Local Education Performance Plan LGBTI Lesbian, Gay, Bisexual, Transgender and Intersex MESCLA Monitoring and Evaluation Support for Collaborative Learning and Adapting M&E Monitoring and Evaluation MOU Memorandum of Understanding NGO Non -Governmental Organization OCAT Organizational Capacity Assessment Tool OCDIH Christian Organization for Integrated Development of Honduras ODK Open Data Kit OMM* Women’s Municipal Office ONADICI* National Office of Integral Development and Internal Control ONCAE* National Procurement and Acquisitions Regulatory Office PDM* Municipal Development Plan POA* Annual Operating Plan Q1 First Quarter Q2 Second Quarter Q3 Third Quarter Q4 Fourth Quarter QRMA Quality Reading Materials Activity Red ITC Community Technical Institute Network RENTCAM* National Registry of Municipal Administration Career Technicians RFA Request for Applications

v | FY 2019 // QPFR 2 SAFT* Integrated System for Municipal Financial Tributary Management SAMI* Municipal Administration System SANAA* National Autonomous Aqueduct and Sewage Service SEDUC* Secretariat of Education SESAL Secretariat of Health SETCAM* Technical Secretariat for the Municipal Administration Career SIARED* Educational Networks Administrative System SIARH* Integrated System of Administration of Human Resources SGJD* Secretariat of Governance, Justice and Decentralization SMI Service Management Index TRC* Regulation and Control Technician TSC* National Audit Institution UDEL* Unit of Local Economic Development UGD* Unit of Decentralized Management UMA* Municipal Environmental Unit USAID U.S. Agency for International Development USCL* Supervision and Local Control Unit USG United States Government WMB Water Management Board

*Acronyms with an asterisk are in Spanish. The meaning of most Spanish acronyms has been translated for the clarity of this report.

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Executive summary At the close of the second quarter (Q2) of fiscal year 2019 (FY 2019), the Activity has reached the mid-point of its period of performance. The results observed this quarter demonstrate that when citizens are capable of influencing service providers and local governments based on evidence, and when local governments and service providers have the skills to execute their duties and respond to citizen demand, real change can begin to occur to improve service delivery. In addition to adapting to citizen influence, service providers and local governments continue to institutionalize the management skills and tools promoted by the Activity. The Activity will capture these improvements to management capacity next quarter through the mid-term application of the Service Management Indexes (SMI). The Activity adapted to a changing political context during the quarter in response to the influx of irregular Honduran migrants to the United States. Due to this migration spike, USAID/Honduras has requested all Implementing Mechanisms (IMs), including the Activity, to increase focus on activities that will directly contribute to deter illegal migration. While working at the local level to improve service delivery and thus decrease poverty already targets the root causes of migration, the Activity has also initiated a case study, involving four (4) municipalities with the highest volume of migrants/returnees. The case study aims to assist these local governments to develop local solutions that address this phenomenon. The Activity continues to strengthen a diverse, and active civil society to enable adequate representation of citizen needs. This quarter, 119 civil society organizations (CSOs) including patronatos (neighborhood associations), women's networks, indigenous organizations, youth committees, among others advocated for service improvements resulting in 47 new public policies and participation in 259 decision-making events. Through 53 citizen oversight exercises, citizens continued to evaluate service providers and local governments producing 52 documents containing recommendations. Whether it is a health center installing suggestion boxes in response to citizen oversight recommendations, or a local government investing in improvements to education, the coordination and communication among citizens, service providers, and local governments is evident. Service provider accountability events allowed water management boards (WMBs), decentralized health providers, education officials, and mancomunidades to inform citizens in accordance to their regulatory framework, but also provide detailed information on financial and management performance. Actors took advantage of the public spaces to review and respond to citizen recommendations and discuss ways to further improve service delivery. Through technical assistance to 251 service providers, the Activity not only strengthened accountability practices, but supported the use of important tools for improved planning, financial management, human resources, among others. For example, decentralized health providers and WMBs developed annual operating plans (POAs) and budgets that emphasized ways to improve service delivery. Municipal and school network education officials began using the Local Education Performance Plan (LEPP) monitoring tool to assess school performance in an efficient and transparent manner. Education officials also improved coordination with local governments to align priorities and increase investment in service improvements. Mancomunidade s continued to improve their relationship with member municipalities and streamline management processes, enabling greater sustainability of their role. Bolstering the Activity’s efforts in the region was continued coordination with other USAID Development Objective 2 (DO 2) IMs as well as other international donors, implementing partners (IPs), and national level Government of Honduras (GoH) institutions. Local governments continued implementation of Municipal Transparency Plans, taking decisive steps to provide citizens with greater access to public information. Strengthened capacities and tailored technical allowed local governments to identify un-paid taxes and work to close gaps and increase own-source revenue. More civil servants were registered in the National Registry of Municipal Administration Career Technicians (RENTCAM) demonstrating political will to implement transparent and equitable human resource (HR) practices. Underlying each action and advance are cross-cutting initiatives to increase gender equality and social inclusion, promote the use of innovative Information Communication Technology (ICT) tools, and collaborate with other USAID IMs. This quarter, the Activity amplified its focus on gender equity and social inclusion, particularly focused on attention to at-risk youth to prevent illegal migration to the United States. From public policies for

1 | FY 2019 // QPFR 2 youth inclusion to the Internship for Inclusion program, the Activity continues to promote youth involvement to increase local opportunity. By the close of the quarter, the United Stated Government announced plans to dramatically reduce aid to Central American countries, including Honduras. If this plan is approved, it may further impact the Activity’s implementation in ways have not yet been identified. The following report presents key advances from January 1 to March 31, 2019. For detailed reports on technical assistance provided and advances by sub-activities, refer to Annex 1 - technical assistance summary by sector, and Annex 2 - progress by sub-activity.

HONDURAS LOCAL GOVERNANCE ACTIVITY: QUARTERLY PERFORMANCE AND FINANCIAL REPORT

Result 1 - Civil Society Influence, Through Evidence Increased This quarter, more CSOs representing the diverse interests of citizens demonstrated their capacity to advocate for their needs in decision-making spaces, while also using evidence to monitor service provider performance. Civil society influence through evidence not only resulted in more approved public policies or citizen oversight exercises, but it is also beginning to change how vital basic services are managed and delivered in western Honduras. The following section details advances in both citizen participation and evidence-based oversight during the quarter.

Sub-Result 1.1 Citizen participation in service delivery decision-making strengthened This quarter, 119 CSOs including Citizen Transparency Commissions (CCTs) and CSOs representing vulnerable populations participated in advocacy interventions during the quarter, bringing the FY 2019 total to 266 and surpassing the Activity’s target for the year. While this active participation is already an achievement, it is the impact and influence of this participation on service providers and local governments that is leading to tangible results. CSOs representing vulnerable groups gain influence and catalyze change across Western Honduras. Since October 2018, the Activity has worked with organizations such as patronatos (neighborhood associations), women's networks, indigenous organizations, youth committees, among others to provide tailored technical assistance as needed to strengthen their internal organization, adhere to their respective regulatory framework, and identify ways to participate in public spaces to advocate for their needs.1 For example, p atronatos, despite having a significant presence in municipalities, lacked formal recognition from municipalities through a Municipal Regulation (reglamento municipal) and therefore did not have clear guidelines on their role and capabilities as an advocacy organization. The Activity supported 15 patronatos and one network of patronatos (representing 11 organizations) in three municipalities (La Labor, Camasca, and Intibucá) to work with their local government to develop these regulations. The regulation in La Labor was approved this quarter (See Annex 3). Complementing this advance, close to twice as many patronatos participated in advocacy interventions the quarter (17) in comparison to last quarter (9). In total , 21,320 individuals (10,922 men and 10,398 women) participated in decision-making events, which represents 6.0% of the population in the Activity’s area of intervention (more than double the participation of Q1). Notably, two organizations that participated in advocacy opportunities this quarter, the Honduran Federation of Lenca Indigenous People (FHONDIL) and the Cucuyagua Sports Association, had not actively participated in public decision-making spaces prior to receiving technical assistance from the Activity. Highlight from this Quarter: In Intibucá (Intibucá), intensive technical assistance was provided to the local youth network through an immersive camp. During this assistance, the youth network identified a critical need for greater economic opportunities to reduce unemployment and migration from the municipality. The youth network used the skills acquired from Activity support to begin working with local officials to promote a public policy on youth participation and develop a proposal for the local government and private

1 The technical assistance and training provided to these organizations was adapted from the training modules delivered to Citizen Transparency Commissions during FY 2018.

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sector to generate more opportunities through an internship program. Throughout the next quarter, the network will continue to work with officials to turn the proposal into action, thus taking steps toward increasing opportunities locally for youth at risk of migrating. Six CSO Leaders on a path toward sustained impact by improving information security, financial, and strategic communications capacity. Since launching six grants with leading CSOs in western Honduras, the Activity has implemented a local capacity development program according to results from the Organizational Capacity Assessment Tool (OCAT), applied in February 2018.2 The initial OCAT identified three principal weaknesses— information security, strategic communications, and financial management—that could inhibit the potential of these CSOs to continue activities following the grant term. Over a period of 12 months, the Activity provided intensive technical assistance in these three areas. Technical assistance resulted in the development of internal and external communication strategies, advocacy plans, financial plans, information security policies, among others. The Activity applied the second OCAT in March. While the results are still being consolidated, preliminary data shows improvements in most grantees in relation to related indicators of the OCAT. With increased internal capacity, these CSOs will be better able to provide continuous support to civil society actors across western Honduras to carry out citizen oversight exercises and ensure that citizen recommendations turn into local government and service provider action. These organizations will also be better positioned to present future proposals and manage donor funds, allowing them to maintain and grow their impact in each region. Local and Regional Citizen Agendas provide a platform for strategic alliances and coordinated action between CSOs. The Activity has identified approximately 600 CSOs in its area of intervention. In any given municipality, between five and ten civil society organizations can co-exist. While the active presence of CSOs signals great potential for citizen influence, it also can result in conflicting or duplicated efforts. During the quarter, the Activity worked to facilitate coordination and collaboration among CSOs such as patronatos, CCTs, women’s networks, water management boards (WMBs), through local citizen agendas. The agendas aim to unify CSOs needs and align proposals in a municipality so that they can establish priorities and continue to generate spaces for dialogue with the local government and service providers. In (La Paz), for example, the draft citizen agenda outlines a plan to promote ordinances or policies to increase protection of natural resources and facilitate a favorable environment for improved territorial development (See Exhibit 1). Just as organizing actors at the municipal level will permit greater citizen influence Exhibit 1: Citizen Agenda - locally, the Activity is promoting coordination at the regional level to develop strategic Chinacla alliances between CSOs across municipalities. In Copán, , Santa Barbara and Lempira, the Activity worked with CSO leaders the Christian Organization for Integrated Development of Honduras (OCDIH), Regional Space for western Honduras (EROC), and the Mennonite Social Action Commission (CASM) to discuss and explore various regional efforts such as a regional CCT network and Departmental Transparency Commissions. These initiatives aim to establish spaces where CSOs can share lessons learned, achieve greater integration of CSO actions, and increase sustainability of citizen influence in the region. The Activity will continue to develop both local and regional agendas during the next quarter and expects CSOs to move beyond the planning and drafting phase, to joint, integrated implementation.

Citizen influence on public policies leads to changes in service delivery . The Activity continues to support CSOs, service providers, and local governments to use public policies as a tool to obtain improvements to service delivery. This quarter, 47 public policies in as many municipalities were approved ranging from Municipal Transparency Plans (multiple) to agreements to tackle alcoholism, school desertion, and youth unemployment (Caiquín, Lempira). The Activity has supported these municipalities to develop public policies that are actionable and attainable so that they can respond to citizen demand and close gaps in service delivery. Municipal Transparency Plans, also considered a legal instrument per the Law of Municipalities, for example have already allowed for decisive changes in the way municipalities hold themselves accountable to citizens (discussed under sub-result 1.2). Highlight from this quarter: In Copán Ruinas, education officials presented data during an open council meeting demonstrating a desertion rate following sixth grade of 71.47%.3 Desertion after primary school can cause numerous problems for children including difficulty finding employment and ultimately increase

2 CASM -Copán, Initibucan Foundation for Development (FUNIDE), OCDIH, CASM-Santa Bárbara, Hermandad de Honduras, Alliance for Christian Youth (ACJ). 3 Extracted from Public Policy on Education, Copa Ruinas. Original Source: INE Volume 43, Municipality of Copán Ruinas 04-04, Copán Department, General Characteristics of the population and households.

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the likelihood of migration. Upon seeing the data, citizens quickly agreed that action was needed and positively influenced the decision to approve a public policy in education. Since the approval of the policy in January 2019, the local government has worked with education officials to implement commitments made under the policy and has expanded the coverage of a non-formal education program for those who previously did not want to return to school. Using municipal funds and support from another international donor, this program registered over 200 students in programs, thus reducing desertion rates and the potential that these young adults migrate to other cities or the US (See Annex 8 for Success Story). The municipality of Cabañas (Copán) is currently in the process of replicating the success achieved in Copán Ruinas.

Sub Result 1.2 Evidence-based citizen oversight of service delivery increased Citizens completed 53 additional oversight exercises this quarter, bringing the total number of oversight exercises to 280 and producing 274 documents with recommendations for service improvements. These advances provide citizens with numerous opportunities to continuously monitor service provider performance using evidence. Whether it is the implementation of a transparency plan or a series of recommendations to improve a health center, citizens are now equipped with the tools and knowledge to identify areas for improvement in service delivery and ensure that providers and local governments respond adequately to recommendations. Citizens take a leadership role in the preparation and monitoring of Municipal Transparency Plans. This quarter, the Activity continued efforts to support the development, approval, and implementation of Municipal Transparency Plans following the diploma program held during FY 2018 with the Institute for Access to Public Information (IAIP – more information under Sub-Result 2.1). Civil society’s active participation is critical to realizing the potential of each plan and is a fundamental step in the process established during the IAIP diploma program. If citizens do not contribute to the plan or understand how to properly monitor the plan’s implementation, the ability to increase transparency is limited. Citizens and Local Government s working Building on momentum from the previous quarter, five additional together for greater transparency transparency plans were developed, socialized, and approved with I feel empowered. I now know the importance of citizen participation, bringing the total number of approved plans to evidence. Once you can get close to the 35. In contrast with previous years, CCTs and Municipal municipality, you can see how it really functions Commissioners (CMs) from Camasca, , Santa Cruz, and you can investigate or request information , and Las Flores were key contributors in the preparation directly. When you do not have this relationship, and approval of the plans (See Annex 8 - Success Stories). To ensure you are only criticizing without understanding. the sustainability of citizen’s role in monitoring transparency plans, the Pedrina Mancía, Municipal Commissioner, Activity developed a practical guide for citizen to “Construct and Mercedes, Ocotepeque Monitor Municipal Transparency Plans.” Citizen oversight efforts and evidence-based recommendations transform citizen demand into service provider and local government action. Whether it is a decentralized health provider in Jesus de Otoro (Intibucá) purchasing an electric generator, or the San Marcos school network in Caiquín (Lempira) including parent’s associations into the LEPP planning process, this quarter the Activity monitored the continued impact of the 280 citizen oversight exercises conducted to date. While the primary impact of these efforts can be seen in decisive actions taken by service providers and local governments to address citizen demands, the oversight and monitoring process also permits a continuous, evidence-based conversation between citizens and public officials with the goal of improved service delivery. This cycle of oversight to action will continue to produce lasting impact as new exercises take place, and existing recommendations are monitored and implemented. Highlights of recommendations implemented this quarter:  WMB Rio Lindo (El Paraíso, Copán) coordinates with Municipal Environment Unit to deliver trainings on proper water use in school networks  Copán Ruinas health center installs suggestion box  Mancomunidad CAFEG supports municipality of (Lempira) to share advances in the implementation of the National School Nutrition Program (PNAE) Piloting digital recommendation monitoring tool, SOCIAL, reveals opportunities and challenges for innovation with civil society. To date, 12 CSOs have piloted the SOCIAL mobile application when monitoring the implementation of recommendations produced by citizen oversight exercises. SOCIAL was designed to facilitate evidence-based analysis of service provider or local government responses to oversight. During the

4 | FY 2019 // QPFR 2 quarter, the Activity provided technical assistance to CCTs and CMs selected for the pilot process. While many users noted the ease and efficiency of using the application, others demonstrated resistance to incorporating technology into the process. The Activity is examining these cultural and technological barriers to determine whether these digital tools can be scaled up successfully. Activities to be initiated or intensified next quarter.  Continue to conceptualize and initiate process to establish Citizen Consultation Centers (CCCs). This has been postponed based on observations regarding citizen’s use of technology. (1.1.2.b)  Provide follow-on grants to CSO grantees to support innovative efforts to monitor and ensure implementation of social audit recommendations (1.2.3)

Result 2 Local Service Provider Performance Improved Building off advances made during Q1, service providers continued to demonstrate management practices that will allow for more transparent, accountable, and effective service delivery in nutrition, water and sanitation, and education sectors. The following section details advances under Result 2: Local Service Provider Performance Improved.

Sub Result 2.1 Accountability of Service Providers Increased Accountability is a key characteristic of good governance and strong, democratic institutions. Despite the Access to Public Information Law, Municipalities Law, and Open Government Partnership (OGP) commitments, accountable management is not common practice in Honduras. This quarter, the Activity continued to support local governments and service providers to change that reality. Whether it is a school network in Lempira holding their first ever accountability event or a decentralized health provider in Ocotepeque establishing a transparency mural and suggestion box in response to a citizen oversight exercise, actors are taking small, but important steps to build stronger institutions that better represent the needs of citizens. This improved dialogue between citizens, service providers, and local governments will allow local institutions to identify and resolve the key issues that lead to citizen dissatisfaction and migration.

LOCAL GOVERNMENTS Strengthening civic engagement among local governments and civil society, municipalities hold Accountability Day in January. While preparing civil society to engage with local governments under Result 1, the Activity is also supporting municipal authorities to better understand and implement accountability and transparency best- practices. In compliance with Article 59-D of the Law of Municipalities, this quarter the Activity supported 82 municipalities as they demonstrated their commitment to transparency by presenting their 2018 financial and project execution reports. 4 While these accountability events are required by law, the Activity is working with local governments to take advantage of the public space to present clear data on municipal performance so that citizens can be informed and influence decision-making based on evidence. As explained by (La Paz) Mayor, Pablino Orellana, “ we have always been accountable, and we provide information to citizens, but through the support of the Activity we now have better-prepared personnel and the necessary tools to increase the professionalism with which we present data transparently to citizens. ” The role of civil society in these events was prominent and demonstrated a growing collaboration with local governments. CCTs and CMs of numerous municipalities took a leadership role during the events and presented progress achieved in the implementation of Municipal Transparency Plans (more information below). Furthermore, citizens took advantage of these spaces to propose public policies. In Lepaera, Piraera and Santa Cruz (Lempira), for example, citizens proposed public policies to support inclusion of vulnerable groups. In 12 municipalities of La Paz, citizens and local governments agreed to solidify transparency as a municipal priority going forward through public policies on transparency. 5

4 Two municipalities did not conduct accountability events: Yamaranguila (lack of political will) and Concepcion (completed during the previous quarter. The remaining five municipalities completed events, but without Activity support. 5 Many municipalities included public policies on transparency as an activity within their Municipal Transparency Plans. Transparency Plans only cover one year of activities, whereas public policies have an indefinite duration and will promote a continued focus on transparency beyond the duration of the transparency plan.

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Turning training into action, IAIP diploma program leads to approval and implementation of more Municipal Transparency Plans setting the bar for the second class of participants. As mentioned under sub-result 1.2, the Activity continues to support the approval and implementation of Municipal Transparency Plans both citizens and local governments following the FY 2018 Institute of Access to Public Information diploma program “Transparency and Right of Access to Public Information with a Focus on Municipal Administration .” Since the first 40 municipal Public Information Officers (OIP) graduated, 35 Municipal Transparency Plans have been approved (five new plans in Q2).6 Currently, 17 municipalities are implementing the plans successfully and presented advances during the accountability events mentioned above. In (Lempira), for example, the municipality is establishing transparency murals and updating its profile on the IAIP’s transparency portal. Each step of plan development, approval, and implementation gives way to greater transparency and accountability. Exhibit 2 demonstrates that the process to establish the plans permits citizens participation and evidence-based decision- making, thus strengthening commitment to accountability and transparency between local governments and citizens. Exhibit 2: Impact of Transparency and Access to Information Diploma Program

In March, the Activity launched the second edition of the diploma program with 38 municipal OIPs. By request from the Association of Honduran Municipalities (AMHON), one OIP from the municipality of Campamento (Olancho), one AMHON technical staff member, and three technical staff members from mancomunidades AMFI, GUISAYOTE and MANCURISJ were also included.7 By incorporating AMHON and members from three mancomunidades the Activity aims to promote sustainability in the skills and knowledge acquired during the course. Just as the first cohort, these participants will be learning about the Access to Public Information Law and will be required to transmit their knowledge to their corresponding CCT and other key local stakeholders from their municipalities. Most importantly, these OIPs will work with these actors to lead the development of a municipal transparency plan. 8 Activities to be initiated or intensified next quarter.  Promote the use of tools and mechanisms for accountability and transparency to improve communication between local governments and civil society (Activity 2.1.1b).

6 Although this is the second cohort the Activity supports, it is the fourth cohort that participates in this program that initiated before the Activity began coordinating with the IAIP. 7 The president of the board of AMHON is the mayor of Campamento and asked for his municipality and one representative of AMHON to be included in the diploma program. 8 For the development of transparency plans, diploma program participants consult with extended CCTs, as the law indicates. “Extended CCT” refers to a group made up by both the organization’s members, the Municipal Commissioner and other citizens.

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NUTRITION AIN-C accountability assemblies spark joint decision-making between local health monitors, decentralized health providers, and citizens to ensure progress towards improving the nutrition of young children. Since FY 2018, the Activity has supported the expansion and implementation of the AIN-C strategy to sustainably improve and increase access to quality nutrition services (See Annex 8 – Success Stories). Community assemblies, held every four months, are a key element of the strategy and promote three-way communication between the local health monitors, decentralized health providers, and citizens based on clear data. This quarter, the Activity continued the training-of-trainers methodology with the remaining 11 Decentralized Health Providers (eight were assisted during Q1) so that they could work with local health monitors to hold assemblies in additional communities. Community assemblies allow citizens to provide feedback and recommendations based on evidence, while also allowing service providers to present on progress in the implementation of the AIN-C strategy. For example, during the first community assembly held in November 2018 in the El Rodeíto community of (Lempira), participants analyzed indicators on the number of cases of children who remain under the height and weight standards for their ages. Upon seeing the data, the monitors and citizens came to an agreement that that specialized support would be given to specific children to help them reach adequate development levels and that updated data would be presented during the next assembly in March 2019. Upon review during the next assembly, the monitors provided follow up information to the families, and while no substantial improvement was seen in the short time period, the monitors renewed their commitment to provide special attention to these families. The Activity will continue to provide support to decentralized health providers, but with a focus on strengthening coordination between health providers and health monitors to facilitate consistent transparency and accountability in the implementation of the AIN-C strategy. From accountability events to results, Decentralized Health Providers respond to citizen demands. While accountability events are required under each decentralized health provider’s agreement with the Secretariat of Health (SESAL), providers were often unable to provide accurate information during events or were not open to receiving citizen feedback. With Activity support, these events are transitioning from routine to impactful as health providers use accountability events to report on performance with data and citizens use tools such as oversight exercises, social audits, and citizen charters to influence improvements. This quarter, 10 Decentralized Health Providers conducted accountability events offering citizens the opportunity to access health provider performance information and to propose recommendations for improvement based on their needs. Highlight from this quarter: In Belen Gualcho (Ocotepeque), the Health Provider reported on advances in response to demands and demonstrated visible results to service users. During the accountability event, the provider first addressed an outstanding recommendation from a FY 2018 social audit by presenting a clear process for installing suggestion boxes in health centers. Now, citizens have a clear path to requesting a suggestion box in health centers where a box is lacking. The health provider then reviewed the recommendations from a social audit carried out at health center Aydé Bueso .9 This review led to several commitments, including the establishment of a suggestion box and agreements to improve maternal and infant healthcare services. Third, the health provider presented a transparency mural showing progress in the implementation of the AIN-C strategy. At the end of the meeting, this provider demonstrated further commitment to improving services by applying a poll during the event to gather citizen opinions of services provided. As demonstrated in Belen Gualcho, accountability events are key opportunities for Decentralized Health Providers to provide citizens with adequate data on performance, receive citizen feedback, and report on advances in response to previous citizen demands. The Activity will continue to work with the remaining health providers to hold these events, thus complying with their agreement with SESAL while also enabling them to continue the cycle of sharing information, listening to citizen demands, and responding by implementing service improvements. Through a citizen charter, Decentralized Health Provider, local government, and civil society align priorities and develop an action plan to address key health issues in the municipality. To date, the Activity has developed

9 Aydé Bueso is the main facility that provides services in the urban area of Belen Gualcho

7 | FY 2019 // QPFR 2 two citizen charters related to health in Tomalá and (Lempira), both in coordination with Decentralized Health Provider MANCOSOL. 10 While implementation of the Tomalá citizen charter began during Q1, the charter in Tambla was finalized and approved this quarter. The Tambla charter was developed during inter- sectoral roundtable meetings in the municipality, allowing MANCOSOL to incorporate diverse perspectives from citizens –including health volunteers and representatives of School Network Parent’s Associations –and the local government into the charter. This charter is accompanied by an action plan that outlines the timeline for activities such as forums on contraceptive methods directed at high school students, and a study to determine current family-planning practices. The two citizen charters established in Lempira (Tomalá and now Tambla) have a two-fold purpose: improving MANCOSOL’s performance as a health provider by addressing specific citizen-demands and increasing this provider’s transparency by enabling citizens to oversee progress with clear indicators. Next quarter, the nutrition team will carry-out an evaluation on the implementation of the Tomalá charter to determine progress and impact. Activities to be initiated or intensified next quarter.  N/A; all activities have been initiated and will continue next quarter. EDUCATION More school networks hold accountability events, informing citizens and leading to decisions for service improvements at the local level. While departmental education officials have integrated accountability into their operating practices through “Accountability Day”, this custom rarely occurred at the municipal and school network level where most citizens interact with service providers and receive education services. Building off the successful implementation of school network accountability events during the previous quarter, the Activity continued supporting the institutionalization of accountability practices at the local level. Through 59 additional events, dispersed throughout Copán, Santa Barbara, and Intibucá, school network officials presented performance and management data related to human resources, financial reports, education indicators, and advances on projects established in the LEPP. Many networks also incorporated data from the Activity’s SMI into their presentations. Like last quarter, these events created communication and decision-making opportunities among citizens, education officials, and local governments that led to new commitments to improve service delivery. In San Andres (Lempira), school network Brisas del Valle, identified four key areas for improvement during their accountability event, including: 1) review the LEPP since it had not been updated since 2015; 2) incorporate parent’s associations and other members of school governance into the board of directors since it currently is only composed of teachers; 3) for the first time, use a record book to document financial information; 4) develop an internal policy on coordination with the community. Following this accountability event, the school network held a community assembly where they demonstrated that all four action items we being addressed 56 school networks use LEPP digital application to evaluate performance. During the quarter, the Activity moved out of the pilot phase and into live use of the LEPP monitoring application that was developed in close coordination with local, municipal, and departmental education officials during FY 2018. School networks with an up-to-date LEPP applied the monitoring app, resulting in 56 complete evaluations. 11 These evaluations are carried out by municipal and school network directors, and provide insight into progress as dictated by the different classroom performance and operational requirements outlined in the LEPP (See Exhibit 3). These results provide a benchmark for improvement throughout the year both for the school networks, and municipal and departmental officials of SEDUC. As more networks continue to use the app, SEDUC will be able to analyze regional differences and identify ways to strengthen the school network model. Next quarter, the Activity will expand LEPP monitoring with the app to more school networks and will also provide assistance to school network directors so that they can share the results during accountability events in June 2019. The Activity also plans to deliver server equipment to Departmental Directorates of Education (DDEs) so that they can

10 A citizen charter is a management tool that works to improve the transparency and quality of service delivery by permitting open communication and coordination between citizens and the service provider to identify areas for improvement and prioritize the needs of the community. The charter also lays out a clear action plan, indicators, and commitments that citizens can easily monitor with evidence and service providers can use to demonstrate improvement. 11 The Activity identified that numerous school networks were operating with an outdated LEPP or lacked a plan entirely. As an initial step to enable all school networks to use the application, the Activity assisted these networks to develop or update LEPPS (see more under Sub-Result 2.2). Assisting school networks with having a plan in place first is necessary so they can have a plan to monitor through the app, which in turn allows them to obtain the necessary data for accountability and service improvement purposes.

8 | FY 2019 // QPFR 2 store data generated by the application and allow school networks to generate dashboards like the example below to analyze their performance (See Annex 8 – Success Stories). Exhibit 3: Snapshot of HLG Internal LEPP tracking dashboard 12

Education service providers deliver on commitments to apply the Code of Ethics at the municipal and school network level. During FY 2018, the Activity worked with education officials at the three levels of management (departmental, municipal and school networks) to develop and implement an easy-to-understand reference booklet on the existing Code of Ethics for Public Servants. The Code is an actionable tool that allows education service providers to identify tailored ways to improve ethics and transparency based on the needs of each Departmental Directorate of Education (DDE), Municipal Directorate of Education (MDE), and school network. During the quarter, the Activity supported municipal and school network officials to implement the code. To date, 25 municipal directors, have established murals or bulletins in schools which serve as constant references on financial data, indicators, and how civil society can become involved in influencing performance. These 25 municipal directors have also each replicated the Activity’s training on the code with school network directors. At the school network level, 51 network directors have also replicated trainings to ensure teachers understand the norms and have established code of ethics murals in each network. By both increasing understanding of ethical and transparent management practices, and implementing the commitments made in each school networks’ code of ethics, the Activity aims to Staff of school network Los Sesesmiles institutionalize transparency and accountability at each level of education prepares a Code of Ethics mural. service management. Activities to be initiated or intensified next quarter.  N/A, all activities have been initiated and are under way. WATER AND SANITATION Greater accountability provides opportunities for WMBs to improve service quality. Using the streamlined accountability tool developed by the Activity during Q1, 75 WMBs held accountability events during the quarter, complying with their regulatory framework and providing service users with data to influence decision- making. 13 These events provided water users and service providers with an opportunity to review both financial and performance-related data, streamlined by the accountability tool. For example, WMB Sesesmil 1 in Copán Ruinas agreed to purchase a new water source, accelerate progress to achieve legal registration, and transparently elect a new board of directors. Upon presenting financial data, citizens and the WMB El Aguacatal (San Jose) agreed to increase monthly fees from L30.00 to L60.00 to allow for more service improvements. In El Níspero, the urban WMB also committed to providing users with a discount if they could pay for a year of water services up front. These actions will allow the WMBs to take steps towards improving service

12 This graphic represents progress as of 4/11/2019. The dashboard is updating in real time and was not captured at the close of the quarter. Between 3/31 and 4/11, two additional school networks applied the tool. 13 In some cases, citizens asked WMBs to clarify information or add additional information and did not approve accountability reports during the first event. Since this was the first experience presenting more comprehensive reports, some WMBs did not properly provide back-up. The Activity will continue to work with these WMBs so that they can improve going forward.

9 | FY 2019 // QPFR 2 management and quality during the year. In addition to the 75 WMBs that held events this quarter, a total of 110 WMBs received assistance to prepare accountability reports and will hold events next quarter. In eight WMBs in La Paz, the Activity encountered difficulties when providing assistance to service providers operating in predominately indigenous Lenca communities. While WMBs agreed to hold accountability events, they did not want to provide the Activity with any follow-up documentation. The Activity is assessing this barrier and will develop a set of tools via a case study that will aim to improve collaboration with indigenous communities so that they can also benefit from strengthened water resource management and service provision. This case study will draw from the indigenous populations strategy developed by the Activity this quarter (see Gender and Inclusion for more information). Activities to be initiated or intensified next quarter.  N/A, all are under way MANCOMUNIDADES Mancomunidades achieve greater stakeholder buy-in and organizational sustainability through improved accountability. Mancomunidades were established to provide technical services to municipalities to promote good governance. While they are considered NGOs, they manage public funds through contributions from municipalities. Due to a lack of transparency and accountability tools, however, many mancomunidades do not receive consistent financial support from member municipalities and are therefore limited in their capacity to provide sustained technical assistance. As mancomunidades are key providers of technical assistance to municipalities, they must be leaders and promote transparency best practices with their member municipalities. During the quarter, six mancomunidades held accountability events in accordance with their approved Mancomunidad Transparency Plan, joining ten organizations that held events during Q1. Events brought together members (mayors and municipal councils) of associated municipalities, civil society, and other local institutions. These exercises, which prior to Activity support did not occur, address two principal weaknesses. First, these events allow mancomunidades to transparently share data on technical and financial management performance. Second, they provide the mancomunidad with the opportunity to demonstrate leadership and market their services to member municipalities. While in each event, mancomunidades achieved greater financial and programmatic transparency with their stakeholders, three mancomunidades took dramatic steps towards a more sustainable and productive future. Exhibit 4 demonstrates key commitments CAFEG, MAMUNI, and PUCA achieved from member municipalities during accountability events. Exhibit 4 - Highlights from this quarter: Results from accountability events in CAFEG, PUCA, and MAMUNI Mancomunidad Results from accountability events

 After 12 years, CAFEG was finally able to bring together all seven municipal councils and civil society. CAFEG  Each municipality increased their monthly contribution by  New internal statutes approved during the meeting to establish greater internal cohesion. PUCA  Member municipalities increased contribution by  Member municipalities agreed to automatically dedicate 2.5 % of the central government transfer to the MAMUNI mancomunidad that would bring the organization’s budget t Before, the mancomunidad operated solely off income generated as a decentralized health provider.

These accountability events are just one effort outlined in the approved Mancomunidad Transparency Plans to ensure that transparency is not only a once-per-year occurrence. Next quarter, the Activity will work to develop a website and virtual transparency hub that each mancomunidad can use to consistently provide information on on-going initiatives. Also, during the next quarter, the Activity will support mancomunidades to evaluate the implementation of their respective plans. Activities to be initiated or intensified next quarter.  Support the updating or creation of mancomunidad Transparency Website. (2.1.4.a)

Sub Result 2.2: Service Provider’s Capacity to Manage Service Delivery Improved During the quarter, service providers in nutrition, education, and water and sanitation, as well as mancomunidades continued to implement new tools and skills acquired through Activity assistance to improve the delivery of vital basic services. From improved coordination between local government and education officials, to nutrition and water and sanitation service providers using annual operating plans (POAs) to establish

10 | FY 2019 // QPFR 2 a clear plan and budget for annual service delivery, service providers are taking steps to ensure continuous and sustainable improvements to service provision. The following section discusses key advances made under Sub- Result 2.2. NUTRITION With the goal of improving nutrition service management, decentralized health providers strengthen internal administration through the development of POAs. The decentralized health provision model at the local level has historically had a limited focus on nutrition, lacked clear processes, and been impacted by high turnover of personnel. These three issues contribute to inadequate service delivery and limit potential for improvement. The Activity’s SMI demonstrated these weaknesses and therefore are at the center of the nutrition implementation strategy. During this quarter, the Activity continued to support decentralized health providers to incorporate more targeted actions related to nutrition in their POAs. To date, 18 of the 19 decentralized health providers supported by the Activity have clearly outlined activities and budgets will allow the health providers to allocate sufficient funds to nutrition-promotion programs, as well as to internal strengthening activities, such as staff trainings on AIN-C. 14 Process manuals streamline management processes for Decentralized Health Providers through step-by-step instructions. Complementing support in the development of POAs, the Activity also worked to customize nutrition process manuals this quarter with nine Decentralized Health Providers. The process manuals respond directly to findings in the SMI related to planning and budgeting, procurement and supplies, and community management. Each manual providers clear, systematic instructions on how to complete essential management functions. These manuals will facilitate continuous improvement and continuity of management functions despite staff turnover. The manuals also streamline key processes that allow the health providers to negotiate and renew their contract with SESAL (see Exhibit 5), contributing to their ability to provide sustained health and nutrition services. Next quarter, the Activity will support the remaining decentralized health providers to develop and approve their process manuals. The second application of the SMI will assess whether these manuals have improved health provider management processes. Exhibit 5: Process to establish legal agreement with SESAL

Strengthened Inter-Sectoral Health Roundtables increase stakeholder collaboration and lead to initiatives for continuous improvement in the delivery of health and nutrition services. Inter-sectoral roundtables allow Decentralized Health Providers, local government, other service providers, and community representatives with a space to discuss and define needs and priorities related to nutrition, as well as leverage resources to execute improvements to service provision. Of the 36 roundtables that have received continuous support from the Activity in areas such as planning, budgeting, among others, eight have already used their improved capacity to increase the transparency, management, and quality of nutrition services. 15 Last quarter, the Activity began to see the impact Inter-Sectoral Health Roundtables could achieve as the Tambla roundtable began development of a citizen service charter, the El Paraíso roundtable began drafting a public policy, and the

14 One health provider was unable to schedule technical assistance prior to delivering their POA to SESAL. 15 The Activity initiated support with 45 intersectoral roundtables during FY 2018. This year, however, the Activity consolidated support to the 36 roundtables that demonstrated the greatest commitment to improve and act.

11 | FY 2019 // QPFR 2 roundtable in Belen Gualcho socialized recommendations from a citizen oversight exercise. This quarter, more roundtables demonstrated their capacity to promote actions that improve nutrition service delivery by facilitating open council meetings, participating in the formation of new public policies, and completing a learning exchange (see Exhibit 6).

Exhibit 6: Activities led by Intersectoral Roundtable to date N Roundtable FY 2018 Initiatives FY 2019 Q1 Initiatives FY 20 19 Q 2 Initiatives

 Promoted ordinance  Socializing citizen to improve AIN-C 1 Belén Gualcho oversight implementation. recommendations  Nutrition fair 2 Tambla  Begin development of  Continue development of Citizen Service Citizen Service Charter Charter  Open council meeting on health 3 Valladolid  Developed transparency mural  Open council meeting on health  Developed transparency mural 4 Guarita  Forum on gender and inclusion in health targeting youth  Began public policy on 5 El Paraíso  Continued public policy development nutrition 6 San Isidro  Contributed to public policy on youth  Experience exchange with the Belen 7 Gualcho intersectoral health roundtable to discuss successful activities  Commitment to replicate training on 8 Protección gender equity, inclusion, and new masculinities. The Activity is working to position the intersectoral roundtables as a stakeholder for sustained improvement in service delivery. To ensure continuity of roundtable actions, the Activity also provided eight roundtables with assistance in POA development –a tool these groups had never before developed— that will facilitate execution of more activities to improve service delivery throughout the year. 16 Two in-kind grant kits will equip health service providers as they expand access to quality health services and reduce child malnutrition. To support decentralized health providers in their efforts to improve service provision, the Activity is pairing targeted technical assistance with two in-kind grants. The first in-kind grant, AIN-C kits, was delivered to the Unit of Decentralized Management (UGD) of SESAL during Q1. By the end of this quarter, all AIN-C kits had been transferred from the decentralized health providers to local health monitors in 26 prioritized communities. These kits will provide 119 health monitors with the tools to provide nutrition services to up to 526 children under five and 136 pregnant mothers. As discussed under Sub-Result 2.1, the Activity continues to provide training and technical assistance to decentralized health providers so that health monitors can properly use the kits and provide accurate data on AIN-C implementation to citizens during accountability events. By the end of the year, health providers will measure annual nutrition statistics that will demonstrate any potential impact of increased access to nutrition services in the 26 communities. The Activity is also preparing to deliver equipment to establish seven Nutritional Exhibit 7: Santa Ana Training Centers (CENs) in four municipalities La Paz –Yarula, , Santa Elena, CEN Agreement and Santa Ana. CENs are community spaces where parents can obtain developmental evaluations for children under two years-old, as well as obtain training to improve their child’s nutrition. The in-kind grant will include more than 50 key items for each center, including pans, cutlery, tables, baby chairs, storage furniture, and cleaning supplies. The Activity selected decentralized health provider MAMLESIP as the first provider to receive the equipment (see Annex 6: low level indicator reporting). The CENs, once established, have the potential to facilitate improved nutritional health for up to 443 children under age five and 838 families. For these CENs to be sustainable, the Activity worked with both local governments, civil society, and

16 The roundtables that received assistance in POAs for Q2 include: El Paraíso (Copán), Guarita, Lepaera, La Unión, Piraera, San Andrés, San Rafael, and Valladolid (Lempira).

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Decentralized Health Provider MAMLESIP to ensure that the CENs had the resources needed to operate. As a result, each of the four municipalities receiving CENs signed an agreement to allocate funds to each center to provide specific nutrients and supplies, and work with civil society and the decentralized health provider to ensure that the centers were functioning properly (See Exhibit 7). The total combined contribution of the four municipalities is approximately L.50,300 or USD $2095. The Activity anticipates delivering the CENs during early Q3. 17 The Activity has worked with USAID IM Alliance for the Dry Corridor (ACS) to first identify potential locations for CENs within the municipalities served by MAMLESIP. The two IMs also coordinated trainings in each school network where CENs will be established on how to use the equipment and provide related service (See Annex 7 – Coordination with other IMs). With this joint support, MAMLESIP is on track to expand and improve service delivery and serve as a model for replication with other Decentralized Health Providers. Activities to be initiated or intensified next quarter.  Continued technical assistance to improve internal administration capacities of decentralized health providers through the development of POAs and Process Manuals, and initiation of internal financial control workshops (2.2.7.a).  Deliver CENs to MAMLESIP and prepare additional in-kind grants for new CENs in other municipalities (Activity 2.2.11) EDUCATION More school networks create or update LEPP establishing a clear path toward improvements in education service delivery and providing a basis for measuring progress. The LEPP establishes goals and benchmarks for school networks, allowing for improved planning, monitoring and evaluation, and supervision. This quarter, the Activity continued technical assistance to 72 school networks and 30 MDEs to develop or update LEPPs. By the end of the quarter, the majority of school networks had updated LEPPs. Next quarter, the Activity will work with these networks to update the revised LEPP to the national School Network Administrative System (SIARED) as required by regulation so that SEDUC can provide networks with a rating depending on their performance according to the LEPP. 18 This quarter, six networks from Santa Bárbara successfully uploaded plans onto SIARED. Developing or updating LEPPs will allow school networks to have a clear path toward improved service delivery and enable them to collect more accurate data when using the LEPP monitoring application discussed under Sub-Result 2.1. 19 SEDUC prepares to implement education supervision model by establishing the inter-institutional supervision roundtable. Under the leadership of the Supervision Unit, SEDUC established an inter-institutional roundtable to oversee the implementation of the new supervision model developed by the Activity. This roundtable brings together different international donors such as Catholic Relief Services, GIZ, and HLG to discuss the implementation and oversight of education supervision at the central and regional level. Through this roundtable, the Activity and GIZ agreed to implement joint workshops on supervision with MDEs during the next quarter. The Activity continues to develop the digital toolkit based on the supervision model and will socialize the tools with the roundtable once they are finalized. Citizen recommendations lead to service improvements in school networks across western Honduras. For citizen oversight efforts to be effective, service providers must understand recommendations and commit to make changes. Both under Result 1 and Result 2, the Activity is working to strengthen this relationship to enable visible improvements to service delivery in response to citizen influence. To date, the Activity has supported 59 citizen oversight efforts in school centers and networks. Of these exercises, 27 have initiated changes in response to recommendations. For example, in Macuelizo (Santa Barbara), citizens found that construction plans for the CEB of school network Unidos por la Educación had not contemplated sidewalks and ramps for students with disabilities and recommended that they be added. Upon receiving this recommendation, the school center adapted the original plan, thus ensuring that the building would be accessible for students with disabilities. In El Paraiso (Copán), the school network Buena Vista developed a

17 Despite having completed the procurement process of the goods to be delivered in early Q2, equipment providers were unable to provide the goods on time due to low stock in country. 18 Ratings awarded range from A to E, with an A meaning excellent functionality. 19 These school networks are: Luchando para Triunfar (Arada), Sanricachín (), Barnisanc (El Níspero), Hacavavicel (), Porvenir de Flores (San Nicolás), and Nuestro Sueño (Trinidad).

13 | FY 2019 // QPFR 2 training plan for parent’s associations so that they could prepare and monitor school lunch distribution. The implementation of these recommendations shows that citizen influence can result in service improvements when service providers accept recommendations and commit to taking action in response. Increased coordination among citizens, local governments and municipal and school networks education officials leads to more investments to improve service delivery. During FY 2019, the Activity has worked to build the relationship between local governments and local education officials so that these actors could align priorities and identify opportunities for improvements. The previously mentioned Public Policy on Education in Copán Ruinas demonstrates the product of this coordination as both education and local government actors identified school desertion as a possible contributor to irregular migration; by working with key actors to improve education services, the Activity is contributing to deter migration root causes. Through two different initiatives –learning exchanges and open council meetings –the Activity facilitated coordination and communication between local governments and education officials resulting in substantial investments that will improve access to quality education services. 1. Learning exchanges: This quarter school networks and local government representatives from Copán, Intibucá and Santa Bárbara participated in learning exchanges to explore successful experiences related to municipal investment, accountability, community outreach, and gender equity and inclusion. Bringing together both government and education officials allowed local governments to better understand barriers to improved education and take action to support the local education officials. For example, in Concepción (Copán) the local government made a commitment to assign funds to future learning exchange trips. The Activity will continue to promote learning exchanges for improved management and coordinate with other USAID IMs if opportunities arise for exchanges focused predominately on teaching quality. 20 Highlight from this Quarter: Following an accountability event La Labor (Ocotepeque), the local government agreed to allocate for school networks Esfuerzo Educativo, Visión Educativa Guisayote, and Visión Laboreña to invest in classroom and office equipment, textbooks, entrepreneurial endeavors for self-sustainability, and infrastructure improvements. This quarter, the local government followed through on this commitment by transferring approximately to school networks in support of construction activities, school

2. Open council meetings: During seven open council meetings in education held this quarter, municipal education officials and citizens presented proposals to mayors and municipal councils that reflected the needs of their local school networks. The Activity has worked closely with APFs, MDEs, and local governments to make service improvements integrated and attainable through collaboration. In Copán, two municipalities used these open council meetings to follow up on the implementation of public policies approved during Q1. The San Agustín local government confirmed that it would make a series of investments including the provision of: transportation for children who live far from their school networks, uniforms for children, teaching materials, and guard services at specific school networks. In Concepción, the municipal council approved a budget allocation to print monthly exams, support teacher trainings, and approved a Municipal Education Commission (COMDE) proposal to invest in service improvements. In Intibucá, local governments donated 520 kits with teaching to all school networks in the municipality (4). These investments demonstrate the rapid impact that can be achieved if local governments, citizens and school officials are mutually informed and can collaborate based on priorities. Activities to be initiated or intensified next quarter.  Technical assistance to strengthen the administrative capacity of the six psycho-pedagogical teams of DDEs, to develop an inclusion assistance model (2.2.2.a).  Evaluate the implementation of standard internal controls developed by the Activity (2.2.3.a).  Continue to evaluate and strengthen HR capacities of DDEs through the digital HR management formats (2.2.3.b).

20 In Concepción (Copán), the local government requested Activity support to contribute additional resources to send teachers on a learning exchange. Since this activity would be focused more on service quality, rather than service management, the Activity notified USAID IM Honduras Reading Activity of the opportunity.

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 Continue to evaluate and strengthen the implementation of standard supervision tools (2.2.3.c). WATER AND SANITATION WMBs identify gaps in knowledge and skills to improve water quality. As reported last quarter, the Activity continues to replicate the model experience in Yamaranguila (Intibucá) to improve water quality and therefore reduce gastrointestinal diseases. 21 The quarter, the Activity worked to finalize the three remaining diagnostics (Valladolid, San Juan de Opoa and Macuelizo) of the six municipalities participating in the replication process and began the development of improvement plans. The diagnostics will be delivered in early Q3. The diagnostic process renewed many WMBs desire to use existing tools to improve their capacity to deliver quality water. In San Miguelito, for example, WMBs realized that while they had chlorination supplies in stock, they did not know how to use the materials. In coordination with the municipal Technician in Regulation and Control (TRC) and the decentralized health provider, the Activity trained 14 WMBs on how to use chlorine disinfection tablets. In the coming months, the Activity will provide follow up assistance on a different chlorination mechanism (grain chlorine). In Yamaranguila, the Activity finalized the sustainability plan that will allow the municipality to maintain and continue improving water quality with reduced external assistance. For the first time, WMBs outline annual plans and budgets permitting improved operations, maintenance, and water quality. As discussed under the nutrition section, POAs are useful tools required by law that service providers can use to identify key actions to delivery satisfactory services for the year and assign the necessary budget to ensure that they have sufficient resources. While POAs are required in the National Water and Sanitation Law, no manual or guide for their preparation exists. As a result, WMBs developed planning timelines, but they lacked detail and did not include related budgets. This quarter, the Activity provided technical assistance to seven WMBs to develop POAs. During the POA development process, two WMBs, El Nispero (Santa Barbara) and San Juan Planes (Trinidad), realized that they did not have enough income to cover required system improvements. As a result, these WMBs proposed increases to monthly fees during accountability assemblies with users (described under Sub-Result 2.1). Upon seeing the proposed actions and transparent data on WMB income and expenses, users approved the proposed increase as it would result in better services in their communities. The Activity will continue this support to more WMBs next quarter to develop their POAs. The Activity analyzes opportunities for ICT tools to improve water service management. In the FY 2019 work plan, the Activity identified the opportunity to develop a digital management tool for municipal TRCs to assist their data collection and reporting tasks and enable local governments to have up-to-date data on quality, coverage, frequency, and water production in their municipalities. This tool could collect data that would be useful to inform systems such as SIASAR and SIRAPS, used by National Advisory on Water and Sanitation (CONASA) and Regulating Entity for Potable Water and Sanitation Services (ERSAPS), respectively. To responsibly develop any ICT tool, it is first important to assess available resources (i.e. internet, computers, smart phones), target-user comfort with technology, existing tools or software, and importantly the potential for host-country ownership. During the quarter, the Activity began this analysis by conducting an inventory of the resources available to the TRCs in their respective municipalities. The results varied, showing that some TRCs had access to computers, but not to consistent internet, while others had access to internet, but did not have a dedicated computer. In the coming months, the Activity will explore different options for digital tools, such as ODK, and analyze possible institutions that could support and ultimately manage the tool beyond the life of the Activity. The Activity continues to consider the possibility that not all TRCs could adopt a digital tool due to literacy levels and will make a final determination during the next quarter. Activities to be initiated or intensified next quarter.  Finalize operation and planning workshops with all WMBs (completion of FY 2018 activity, 2.2.17)

21 Between 2014 and 2017, Yamaranguila –with the support of the mancomunidad MANCURISJ, NGOs, and other USAID IMs— began a chlorination program that addressed the issue of chlorination from a health, governance, and social perspective. The results of the program speak for themselves; by 2016 cases of diarrhea in children under 5 years old had dropped by over 50% in comparison to data from 2012. HLG identified this program as a model to replicate and make sustainable.

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 Intensify technical assistance on water quality, frequency, production, and maintenance (Activity 2.2.16)  Prepare in-kind grant package and EMMP for Chlorine Banks taking into account existing debates on water chlorination (2.2.20) MANCOMUNIDADES Mancomunidades continue to streamline internal financial and administrative processes through the implementation of a Manual on Internal Controls and Accountability Standards . Last quarter, 15 mancomunidades presented their Manual on Internal Controls and Accountability Standards for review and subsequent approval by their Boards of Directors. This quarter, the Activity finalized the remaining three manuals in HIGUITO, MANCORSARIC and MAVAQUI, while also supporting the 15 mancomunidades to properly implement stronger internal controls according to each manual. These manuals will allow the mancomunidades to standardize internal controls and financial management processes to ensure greater transparency and compliance with their legal framework. The Activity began to see the impact of these manual during the quarter as CAFEG established statutes clarifying the role of the board of directors and for the first time convened a general assembly (discussed under Sub-Result 2.1). During the next quarter, the Activity will monitor the implementation of the manuals and provide tailored technical assistance to each mancomunidad to institutionalize these internal controls so that they can continue to improve internal management. With more cohesive leadership, mancomunidades adopt inclusive decision-making practices. Many mancomunidades exhibit a disconnect between the Board of Directors and technical staff when determining organizational priorities and budgets. This lack of communication and coordination inhibits strategic decision- making and results in many Boards being unable to garner approval from their own municipal councils to increase investment and utilize mancomunidad services. With Activity support, mancomunidades have continued to take steps towards more compliant and cohesive management practices. These advances include:  17 mancomunidades holding workshops with technical staff and their Board of Directors;  18 boards of directors operating in accordance to internal regulations and statues;  15 community assemblies, instead of the board of directors, approve annual operational, financial, and administrative plans (discussed under sub-result 2.1) These steps have allowed mancomunidades to demonstrate a consolidated strategic vision to both technical staff and member municipalities during accountability events. As mentioned under sub-result 2.1, in three cases (PUCA, CAGEG, and MAMUNI) this has contributed to increased investment from member municipalities. Mancomunidad Higuito sets the example for other organizations as it advances in the implementation of a quality management system. As mancomunidad Higuito continues to design and implement a quality management system, it is already showing potential to serve as a reference for other mancomunidades. For the first time, the mancomunidad has established indicators that will allow it to consistently monitor performance. These indicators, coupled with a new catalog of services, and an institutional reorganization that clearly defines responsibilities and functions, will result in a more effective and sustainable organization capable of providing quality services to member municipalities and continuously improving. Exhibit 8: Mayor Also, during this quarter, Higuito participated in a training on best practices for Orlando Costa good governance, led by former mayor of Bragado, Argentina Orlando Costa. This event, attended by members of Higuito including mayors, deputy mayors, municipal council members and technical staff, discussed the importance of quality management systems, optimizing municipal administration, and ways to continuously improve sustainability of local government actions (see Exhibit 8). Mayor Costa also presented to AMHON and the Secretariat for Governance, Justice, and Decentralization (SGJD) on the importance of quality management systems, emphasizing the importance of an integrated emphasis on quality management, not only applicable to mancomunidades , but also to central and municipal government entities. Next quarter, technical assistance will continue with trainings for internal auditors and the completion of an internal audit to determine the efficacy of the newly established quality management system.

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Eight mancomunidades submit applications under the Activity’s Annual Program Statement (APS) to provide tailored technical assistance to member municipalities. Key to the Activity’s technical assistance strategy this year is incorporating mancomunidades as technical assistance providers to strengthen service delivery in member municipalities. After launching the APS during Q1, this quarter eight organizations submitted comprehensive applications, of which seven received comments for improvement, and one was submitted and approved by USAID (MAVAQUI). The Activity is providing significant feedback to ensure that future grants build off advances achieved to date. The grant review process is also another opportunity to increase the capacity of mancomunidades to respond to requests of other USAID IMs and international donors. Exhibit 9 details the status of each application and the respective sector of intervention.22 Exhibit 9: Status of APS applications received to date.

Comments sent to Applications Pre- Application Number Service to be addressed applicant by evaluation approved by Evaluation Approved by USAID Evaluated by HLG committee Committee

1 Water and sanitation. X X

2 Municipal Finance X X X X (MAVAQUI)

3 Nutrition X X Water and sanitation, 4 X X X Nutrition. 5 Nutrition. X X 6 Municipal Finance X X 7 Municipal Finance X 8 Water and sanitation. X X

Activities to be initiated or intensified next quarter.  Participatory preparation of an Institutional Sustainability Plan for mancomunidades. (2.2.13.b)  Participatory preparation of a Quality Policy for the technical services provided by the mancomunidades. (2.2.13.e)  Automate accounting processes and financial indicators in mancomunidades. (2.2.13.g)  Provide in-kind grants to support organizational capacity of mancomunidades (2.2.14.a)

Sub Result 2.3 Local Government administrative management capacity increased Local governments continued to improve their capacity to efficiently and effectively manage public resources in order to increase own-source revenue and strengthen local service delivery systems. Close collaboration with central level institutions such as the SGJD, AMHON, and SETCAM permitted important advances in areas such as local economic development, implementation of the financial management system SAFT, and registering more public servants in the National Registry of Municipal Administration Career (RENTCAM) system in compliance with the CAM law. Tailored technical assistance also resulted in 12 municipalities identifying tax debt and in one case correcting inaccurate tax calculations, allowing the municipality to collect an additional in tax revenue. The goal of these interventions is to strengthen local government capacity so that they can develop and implement their own solutions to development problems such as illegal migration to the US and inadequate public service delivery. 12 municipalities improve tax management, increasing opportunity for greater own-source revenue collection. Out-of-date tax payer databases and inadequate tax collection inhibit a municipality’s capacity to increase own- source revenue and therefore invest in service improvements. In 12 municipalities in Ocotepeque and Lempira, the Activity supported municipal staff to identify tax debt, update taxpayer databases, and begin charging

22 The name of the applicant has been removed as it is procurement-sensitive.

17 | FY 2019 // QPFR 2 delinquent taxpayers with the goal of reducing tax deficits. These municipalities were prioritized for technical assistance based on their poor performance on the SMI and if they had untrained staff. Although technical assistance was finalized recently in Ocotepeque and Lempira, municipalities area already seeing opportunities to increase revenue. Belen (Lempira), for example, has identified 40% of taxes that have not been paid, totaling L.187,145 or 18% of its total budget of own-source revenue (L. 1,047,953). While this demonstrates an alarming situation in the municipality, it also shows potential for substantial growth. The municipality has already followed up with tax payers and collected 4% of owed taxes. Belen was also able to add 100 new taxpayers to its database. Demonstrating similar advances, Las Flores (Lempira) identified 90% of owed-taxes, representing 6% of their total budget. To date, 14% or L.15,957 has been collected. The Activity will continue to monitor these municipalities as they close gaps in tax recovery. At the end of this quarter, technical assistance also began in Copán. Next quarter, assistance will begin in La Paz. Highlight from this quarter: Despite technical assistance only beginning this quarter in Trinidad (Copán), the municipality uncovered that taxes had been calculated improperly resulting in reduced revenue. Up r 8 percent of their budget). Through strategic partnership with the AMHON, six municipalities improve understanding and use of financial information system, SAFT. In 15 municipalities selected for assistance under a grant with AMHON, manual financial management increased the likelihood for human error and could potentially lead to fines from the National Audit Institution (TSC). This quarter, AMHON provided technical assistance to six municipalities on important modules of the SAFT system: tax control, cadaster, public services, accounting, security, and management.23 This technical assistance, which ranges from installation of the system to trainings on use and management has had an immediate impact in the municipalities. In Concepción del Sur (Copán), for example, municipal staff are using the system to develop invoices for services on line. This change increases the accuracy of these invoices and reduces the likelihood that a service user is charged either too little or too much for services. Implementation of SAFT will facilitate transparent and efficient tax collection, calculation of service rates and fees, and will also allow each municipality to prepare and submit reports to central level institutions on time and accurately. During the next quarter, AMHON will continue support to the remaining municipalities. Also, under the grant with AMHON, the Activity is exploring the possibility of creating a link between the SAFT and SAMI financial management systems. SAMI is a platformed developed by the Secretariat of Finance (SEFIN) and is required for central level reporting. This quarter preliminary conversations took place between the Activity, AMHON, and SEFIN to discuss this potential activity. Conversations will continue next quarter. Municipal auditors put new skills to use as they implement an Internal Audit Action Plan. During FY 2018, the Activity supported the TSC to carry out an intensive diploma program on internal controls and municipal auditing. This quarter, the 14 participants from as many municipalities began to implement the action plan developed during the diploma program. Each action plan included steps such as establishing a POA, conducting internal audits, reviewing internal controls of financial and administrative units, and if applicable responding to TSC audit observations. In (Ocotepeque), this diploma program allowed the municipal auditor to comprehensively understand their role and responsibilities in the municipality. In a progress report, the participating auditor from San Francisco del Valle explains that prior to the diploma program, he had only been trained twice on aspects of his job. Now, he reports that he understands his role and has garnered greater confidence and trust from the mayor and municipal council. He has established clearer internal controls in areas such as treasury, accounting, and tax management and is in the process of auditing these units to identify any weaknesses. In Mercedes (Ocotepeque), the auditor evaluated internal controls and implemented improvements based on weaknesses identified. For example, the municipality formed a Committee on Integrity and Public Ethics, began paying minimum wage to full-time employees that were previously underpaid, and updated the organizational chart of roles and responsibilities. The Activity continues to monitor these 14 municipalities to assess improvements following their participation in the diploma program. During Q2, the Activity initiated a second diploma program on the evaluation of internal controls and municipal auditing with 24 municipal auditors, plus a UFIM (Inter-municipal Financial Unit) technician from the Higuito

23 Municipalities assisted: Santa Bárbara (Concepción del Sur), Lempira (Piraera and San Andrés) and Copán (San Juan de Opoa, Trinidad and Veracruz)

18 | FY 2019 // QPFR 2 mancomunidad . In this second edition, the duration of the diploma program will be five months (February to June 2019) and will be held in the city of Comayagua. More local governments usher in a new era of municipal management by applying the Municipal Administrative Career (CAM) Law. This quarter, the Activity continued to work closely with the Technical Secretariat of the Municipal Administration Career Law (SETCAM) to implement the CAM Law and professionalize the municipal civil service in western Honduras. With 75 additional municipal employees registered in the National Registry of Municipal Administration Career Technicians (RENTCAM) this quarter, now 20% (219) of employees subject to the law have been registered, demonstrating a ground-breaking commitment from local governments (see Annex 4 – RENTCAM registration). Municipalities such as Valladolid and have registered at least 80% of their employees subject to the CAM law to date, demonstrating impressive political will and commitment to safeguarding municipal civil servants. Not only were more employees registered, but municipalities continued to adopt the processes required by the law, such as employee recruitment and performance evaluations, updating employee files and installing a human resource (HR) management system, and establishing local citizen committees that supervise law compliance. To date, the Activity has supported CAM implementation in 45 target municipalities. These improved HR practices aim to contribute to a smooth transition of local governments during the upcoming 2021 elections. To institutionalize CAM law implementation as a pillar of good governance, the Activity is working directly with SETCAM through a grant with AMHON. SETCAM provides specialized technical assistance in technical areas such as: recruitment processes, personnel evaluations, firing procedures, and implementation of the digital HR system. In specific cases, SETCAM has provided trainings for municipal councils and Personnel Administration Units (UMAP) when the municipality is hesitant to implement the law. At the national level, SETCAM is also working with the TSC, National Council for Anti-Corruption (CNA), and the Secretariat of Labor to socialize the law. Following an institutional diagnostic, SGJD receives recommendations to improve administrative capacity. During Q1, the Activity completed a comprehensive institutional diagnostic of the SGJD that assessed eight units within the Secretariat. This quarter, specific recommendations for strengthening and improving internal processes were finalized and presented to the institution, providing the SGJD with a path toward improved management and oversight of local governments. Examples of recommendations range per department, but include: 1. Overall recommendation : Additional internet bandwidth SGJD units assessed by the to support all departments within the organization; diagnostic: 2. Directorate of Decentralization : Review the technical 1) Direction for the Decentralization of structure, budget, and personnel capacities and the State responsibilities to analyze efficiency and efficacy of actions. 2) Direction of Municipal Strengthening 3) Direction of Local Economic 3. General Secretariat: Review existing logistical and Development technological needs following the separation of the 4) Direction for the Departmental Secretariat of Human Rights from the SGJD. Regime 5) Direction for Planning and Local 4. Directorate of Municipal Strengthening : Develop an Governance integrated system for processing municipal transfers that 6) Interinstitutional Commission of permits more efficient process times. Territorial Delimitation 5. Directorate for Local Economic Development : Add 7) Direction of Regulation, Registration and Monitoring of Civil Associations more staff to the team who are specialized in LED and can 8) General Secretary complete a training and certification process. The Activity also supported the SGJD to prioritize recommendations so that the institution can begin developing an action plan and identify possible funding sources for improvement projects. In addition to providing the SGJD with the complete diagnostic results, the Activity provided the Secretariat with a series of documents that set the institution up for success, including: A Quality Manual, a proposal to leverage human resources, a Procedures Manual, and a Proposal for Institutional Improvement. These documents will guide the Secretariat as it continues to improve its internal organization, with the goal of making the oversight of local governments more efficient and effective. SGJD improves data management with new IT infrastructure. The Activity is already supporting the response to one recommendation from the above-mentioned diagnostic: the need for improved IT infrastructure

19 | FY 2019 // QPFR 2 following the separation of the Secretariat for Human Rights. In conversation with the Secretariat following the division of the two institutions, the Activity provided a kit of IT equipment to improve the functionality of seven units supporting municipal management within the SGJD. This equipment, delivered at the close of FY 2018, included items such as computers, printers, and a new server to protect confidential and critical information related to municipal finances. During the quarter, the Activity completed a follow up visit to assess the impact of this in-kind grant. Improvement could be seen in various processes, such as increased document storage, a centralized file management system, searchable archives, digitized documents, and the flexibility provided by mobile workstations (laptops and tablets) in carrying out collaborative work among employees. The IT equipment also allowed the SGJD to establish an institutional email address for the first time, improving internal cohesion and coordination. Municipalities take the lead on increasing local economic development (LED) to promote greater prosperity and reduce the intention to illegally migrate to the US. In coordination with the SGJD, the Activity is providing targeted technical assistance to eight municipalities with the goal of strengthening efforts to improve economic development. This quarter, Corquín (Copán) continued to implement its LED agenda (developed during Q1), by holding the second environmental entrepreneurship fair ( Feria Verde Empresarial ). This initiative aimed to provide a platform for small and medium local businesses and to develop synergies and agreements among entrepreneurs, citizens, and the local government. This fair, held on March 30, benefitted small businesses owners like coffee producers and women’s networks, and concluded in an official agreement between the Municipality of Corquín, the Municipal Commissioner, and a representative of small business owners to support the local LED committee by promoting joint initiatives. Next quarter, the Activity will continue technical assistance to develop and establish LED agendas and committees in three additional municipalities included in the pilot: Cucuyagua (Copán), Lepaera (Lempira) and La Labor (Ocotepeque). By having a clear agenda and action plan, these municipalities will be able to create new opportunities for citizens locally, reducing their need to migrate. The Activity also launched two additional efforts this quarter that will support LED with the goal of reducing migration. The first is a joint activity with the USAID Transforming Market Systems Activity (TMS) to develop business enabling environments through the “one-stop shop” model. The second is a case study on migration in four municipalities that will identify comprehensive actions that a local government can take to reduce migration. These two activities are discussed further in the Coordination and Gender and Inclusion sections, respectively. Activities to be initiated or intensified next quarter. 1. Provide assistance to eight selected municipalities for the modernization of urban and rural cadaster and provide specialized technical assistance to 10 municipalities (2.3.3). 2. Initiate technical assistance in taxation legislation with the remaining municipalities in La Paz (2.3.4). 3. Initiate joint technical assistance for SAFT implementation through AMHON’s grant (2.3.5). 4. Support the National Audit Institution (TSC) with an in-kind grant to strengthen its institutional capacity (2.3.9.b).

Coordination with USAID IMs, IPs and Other Donors This quarter, the Activity continued joint efforts with other USAID IMs, Implementing Partners, and other donors. While the Activity consistently works to align strategic priorities, integration is ultimately achieved through coordinated implementation that amplifies USAID’s impact in western Honduras. This quarter, seven coordinated events or joint technical assistance occurred ranging from the delivery of over 1 million teaching supplies and text books to school networks, to collaboration to establish business-enabling environments in six municipalities through the Ventanilla Única model. For more information on Coordination with other IMs, refer to Annex 7 ). Three USAID IMs support the SEDUC Departmental Technical Teams (ETI) to clarify their mission and vision for improved education management and quality. ETIs are the strategic branch of each DDE and provide technical support to different areas within each office to enable departmental, municipal, and local education officials to achieve indicators, continuously improve, and provide quality education throughout western

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Honduras. For each USAID IM, the ETI represents a key stakeholder for sustainability. ETIs are capable of complementing USAID’s efforts, and continuing initiatives after each activity ends. Following a commitment made during a coordination meeting held in December 2018, the Activity, Honduras Quality Reading Materials Activity (QRMA), and the Honduras Reading Activity (HRA), held a joint meeting with the six ETIs from each DDE. The purpose of this meeting was to clarify the mission and vision of each ETI, identify the main challenges in education service provision in each department, discuss how the ETIs can facilitate improvements to education management and quality, align ETI and USAID IM work plans, and define coordination and integration mechanisms to improve education management. The meeting resulted in important commitments that will not only improve coordination among the three IMs and the ETIs, but also will result in stronger ETIs that are capable of promoting improvements to education delivery and quality going forward. Importantly, the ETIs agreed to establish internal coordination mechanism within the DDEs where ETI performance will be analyzed and decisions can be made to ensure that key results are being achieved and if not, adaptive measures will be taken. Additionally, the actors agreed to hold quarterly meetings with USAID IMs and other international donors to monitor the implementation of an integrated work plan. Leveraging geographic coverage, the Activity supports Honduras QRMA in the distribution of over 1,700,000 teaching and education materials across western Honduras. Coordination between IMs is not only necessary to align technical strategies and complement activities, it is also a tool to expand USAID’s geographic reach. In addition to the coordination efforts mentioned above, the Activity assisted Honduras QRMA to distribute didactic materials including textbooks and teaching supplies designed and printed by the IM to improve teaching quality. The Activity was able to contribute both manpower and logistical support to deliver these materials and document their reception. Combined, over 1,494 school networks received materials and will be better able to provide quality instruction to youth in western Honduras. Since the Activity included variables in the LEPP monitoring app on teaching quality, the impact of this donation will be measured by school networks with Activity support. Six municipalities agree to implement a “one-stop shop” to jump-start economic development and create more opportunities locally. One-stop customer service windows, known in Spanish as Ventanilla Única , allow citizens to obtain permits and other procedures in a single place, as opposed to visiting multiple offices. For example, if a citizen is looking to build a home they currently need to visit multiple offices to obtain required documents such as land use and environmental evaluations, to eventually present them for municipal approval. With a Ventanilla Única , all documents would be requested and approved at a single location, decreasing processing time to one or three days maximum and increasing customer satisfaction. The Activity is supporting USAID IM Transforming Market Systems (TMS) to establish six Ventanilla Únicas in Intibucá and Jesús de Otoro (Intibucá), (La Paz), Lepaera (Lempira), San Marcos (Ocotepeque), and Trinidad (Santa Bárbara). In this joint initiative, the Activity will leverage its ongoing efforts in local economic development to provide technical assistance. The Activity will support local government officials to streamline the process for obtaining construction and business permits while TMS will work to simplify processes related to employment. This quarter, the Activity and TMS met with municipal authorities of to discuss the Ventanilla Única model (see Exhibit 10). Next quarter, the two IMs will carry out a diagnostic of current processes and citizen satisfaction. This data will be used to develop redesigned processes, train personnel, test and adapt the Exhibit 10 new systems, and finally, officially launch the a Ventanilla Única in each municipality. The combined efforts of the Activity and TMS aim to expedite citizen-government transactions, while also providing municipalities with updated data on local cadaster and businesses. Ultimately, these one-stop shops have the potential to create more economic opportunity in each municipality thus increasing prosperity and reducing the need to illegally migrate to the United States.

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Other coordination actions that occurred during the quarter:  GEMA and HLG met with mayors in Copán and Lempira to analyze results, define the methodology, and distribute tasks to reach continue the development of the inter-municipal public policy to protect micro-watershed El Suctal (reported during Q1)  With ACS, train teachers, school network directors and health provider supervisors on the use of the seven Nutritional Training Centers (CENs) that will be established in four La Paz municipalities (Opatoro, Santa Ana, Santa Elena and Yarula).  With Access to Markets, coordinate training to strengthen the administrative and self-sustainability capacity of school networks from La Labor Ocotepeque  Continued coordination with FHIS regarding Infrastructure Designs (see Infrastructure section under Cross-cutting Themes)  Coordination with GIZ and CRS in Inter-Institutional Supervision Roundtable (discussed under Sub- result 2.2)  With Honduras Reading Activity, coordinate decision-making activities for teachers and Departmental Education Directors (14 La Paz municipalities, 29 school networks).

Crosscutting Themes APPLICATION OF MID-TERM SERVICE MANAGEMENT INDEX The Activity plans to apply the mid-term SMI in May and June of this fiscal year to measure improvements in service delivery management and local governance. This quarter, the Activity advanced in key preparatory steps including the identification of the Team Lead and data enumerators. Based on lessons learned from the first application in FY 2017, the Activity plans to incorporate an improved ICT tools to allow for near real-time analysis of data collection. Additionally, the Activity has identified a team of 12-15 high-capacity university interns currently participating in the Internship for Inclusion program to serve as data enumerators. Not only will this be an important experience in their professional development, but it is a cost-effective solution to often costly data collection. INFRASTRUCTURE 10 designs on track to construction following approval this quarter. The design approval process requires two steps of approval. First, USAID must approve the design, and then it is sent to Honduran Social Investment Fund (FHIS) for certification. This quarter, six designs were approved by USAID, of which three were also certified by FHIS. Additionally, FHIS certified four designs that were approved by USAID during Q1 (see Annex 5 for status of infrastructure designs). These designs will lead to construction projects for improved service delivery including: expansion of education centers and health centers, and one latrines project. The Activity also submitted and received approval from USAID for five pre-design studies. In total, the Activity aims to complete 16 designs this quarter. Coordination with FHIS is essential to guarantee that designs are compliant with GoH requirements. As a result, the Activity and FHIS met numerous times during the quarter to review designs, make corrections, and review the design certification process to ensure efficient review times (see Annex 7 - Coordination with other IMs). INFORMATION COMMUNICATION TECHNOLOGY The Activity advanced on numerous ICT-related actions during the quarter and initiated new projects. Particularly with the use of digital application such as the LEPP monitoring application and SOCIAL, the Activity has noticed varying opinions and acceptance of technology. The LEPP tool, for example, has been received positively by most school network directors and municipal directors, whereas some members of civil society has displayed hesitation and reluctance when piloting SOCIAL. The Activity continues to explore the use of digital tools and is incorporating lessons learned as it evaluates whether to build more tools such as the application for municipal TRCs, discussed under Sub-Result 2.2). Current ICT efforts include: On-going:  SOCIAL : application launched with pilot group of CSOs. (refer to Sub-Result 1.2)

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 LEPP monitoring application : Application being used by 25% of school networks (refer to Sub-Result 2.1) New:  Honduras Local Governance Activity Web Page: Following approval by USAID, the Activity developed a prototype and shared it with USAID for feedback. The site will be launched officially during the next quarter and will be a resource hub for both USAID and local stakeholders. All public dashboards will be available through the site.  Digital toolbox: The Activity is preparing to deliver the digital toolbox to USAID at the end of FY 2019. This toolbox will house all tools developed by the Activity to date and systematize successful experiences such as the IAIP diploma program, Internship for Inclusion program, Service Management Index process, among others. This quarter, many Result 1 tools were finalized in preparation for the toolbox including: 1. Modular Series: Empowering Civil Society, Promoting Citizenship, Building Local Governance with Citizen Influence, Generating Culture of Transparency and Citizen Advocacy 2. Systematization: Citizen oversight of the Transition and Transfer of Local Governments in western Honduras. 3. Methodological Guide for Oversight and Social Auditing 4. Methodological Guide for Construction and Development of Citizen Agendas 5. Methodological Guide of Civil Society Influence local public policies. GENDER AND INCLUSION Gender equality and new masculinities: Using a training-of-trainers methodology, citizens of western Honduras tackle gender inequality. Gender stereotypes pervade social and professional spaces in western Honduras and often lead to exclusion of women and girls from obtaining economic stability, thus perpetuating a cycle of poverty. Continuing efforts from FY 2018, the Activity held a series of training-of-trainers workshops with members of WMBs, municipal women’s and youth offices, mancomunidades staff, and decentralized health providers. Whereas last year, the Activity predominately focused on gender equality and women’s participation in decision-making, this year the Activity added a component on new masculinities. Workshops addressed the inherent privileges that traditional masculinity offers men and boys, the cost of gender inequality for girls and women, and what men can do to promote gender equality. Participants also identified and deconstructed gender roles and stereotypes. Following each training, participants were encouraged to replicate the workshop with colleagues within their respective sectors. These replicas resulted in 206 individuals trained on gender inclusion and new masculinities. Ultimately, these trainings aim to promote a culture of equity and women’s empowerment to break the cycle of inequality faced by women in the region.

Gender equality in Water Management Board leadership. Through the development of the Activity Gender Inclusion and Vulnerable Populations strategy, as well as through numerous social audits, the Activity identified that most members of WMB boards of directors are men. During the quarter, the Activity updated its database of WMB board of directors and confirmed that of the 738 WMBs in the Activity’s area of implementation, approximately 78% of board of director’s members are men and only 22% are women. This imbalance inhibits inclusive decision-making and can result in service delivery that is biased toward the needs of men. To close this gap, the Activity is supporting various activities to promote gender equality. In Santa Barbara, for example, the Activity assisted in the development of an ordinance aimed at increasing representation of women on WMB boards of directors to 50%. In Intibucá, the Activity is working with WMBs to include a similar clause into internal regulations that requires 40% of management positions to be held by women. These internal regulations also establish that women are equal owners of the water resources in their household. This provides them with the right to participate and vote in management decisions. By the end of the year, the Activity will update its database again to assess any improvement in gender equality and measure the efficacy of the different interventions being carried out across regional offices.

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Indigenous populations: Comprehensive approach developed to better support indigenous populations in western Honduras. Lenca and Maya Chortí indigenous groups have a presence in at least 51 municipalities supported by the Activity, yet they are often excluded from decision-making due to cultural conflicts. Following an in-depth study, the Activity developed an implementation strategy for working with indigenous populations. This strategy is a complementary tool to the Gender Inclusion and Vulnerable Populations Strategy and seeks to provide data and recommendations that the Activity and other USAID IMs can use to better promote the active participation and social, political and cultural inclusion of the Lenca and Maya Chortí indigenous groups. As discussed under Sub-Result 2.1, conflicts with indigenous populations are particularly prevalent when related to water resource management. Next quarter, the Activity will use this strategy to develop a case study for working with indigenous groups to improve water and sanitation service delivery.

Youth and Illegal Migration to the United States: Creating local solutions to illegal migration. While the Activity already targets some of the root causes of migration, this quarter the Activity developed a case study with four municipalities to target the recent spike in illegal migration in Macuelizo (Santa Barbara), Copán Ruinas (Copán), Gracias (Lempira), and San Marcos (Ocotepeque). This case study proposes that (1) if local governments are informed and can design and implement targeted actions to benefit returned migrants/at-risk youth; (2) if local governments improve the coordination among service providers, the private sector, NGOs, international organizations, and GoH institutions to increase returned migrants/at-risk youth access to quality services and local economic development opportunities; and (3) if returned migrants/at-risk youth are further incorporated into civil society organizations so that they can better participate in local decision-making opportunities, then the intention to illegally immigrate in each municipality will decrease. During the quarter, the Activity received COR technical concurrence to use its Activity Modifier Fund (AMF) for the case study. At the close of the quarter, the Activity had submitted the request to use the AMF to the CO and was awaiting approval. The Activity will accelerate implementation of the case study next quarter. Promoting youth as leaders for change in western Honduras. According to average data from the National Center for Social Sector Information (CENISS), approximately 78 percent of migrants apprehended at the border are under the age of 30. Of these individuals, 95% cite the lack of economic opportunities as their principal motivation for illegally migrating to the US. These statistics demonstrate that youth feel that their needs are not being met locally. To address this, the Activity is promoting the active participation of youth networks in decision-making so that they are equipped to successfully advocate for their needs and reduce factors that accelerate migration. As mentioned under Sub-Result 1.1, the Activity held a youth camp in Intibucá (Intibucá) to strengthen the advocacy and leadership skills of organized youth networks. Approximately 101 youth participated in the three-day event. As a result of the event, the local government and the youth networks are working together to draft a youth participation policy and have also presented a proposal for an internship program. In San Isidro (Intibucá), the Activity is supporting the development of a similar youth policy. During workshops with the local youth network, one Activity intern led a discussion session on the importance of youth participation to improve local governance and service delivery. Development of both public policies in Intibucá will continue next quarter. Internship for Inclusion program continues as it welcomes the second class of Tegucigalpa interns and conducts the mid-term evaluation of the regional interns. In March 2019, the Activity launched the second class of university interns in the Tegucigalpa office, making this the fourth overall class of interns supported by the Activity. The six interns selected will become integral members of the Tegucigalpa team and support areas such as grants and subcontracts, finance, ICT/GIS, monitoring and evaluation, and the technical team. Similar to their predecessors, they will receive intensive mentoring to prepare them personally and professionally to enter the work force following the year-long internship. Exhibit 11 shows the breakdown of selected interns. The previous cohort of interns finalized their internship in February. Of this group, three interns left early upon receiving full-time employment opportunities. The remaining three all had either full-time or part-time employment opportunities upon finishing.

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Exhibit 11: Profile of six interns selected for fourth class of Interns for Inclusion

From March 26-28, the 29 youths participating the Activity’s regional Internship for Inclusion program completed a three-day workshop to evaluate the progress they have achieved during their first six months of the program. The mid-term evaluation is an opportunity for the interns and the Activity to pause and reflect to ensure that year-long experience propels the 29 participants towards success. During the evaluation, the interns had the opportunity to share their experiences with USAID Honduras Democracy and Governance Director, Craig “Beyond providing us with economic Buck. During the conversation, the interns expressed how this stability, this internship program has opportunity has transformed their lives, giving them the allowed us to learn and grow personally experience they need to excel in the workforce. Many cited how and professionally in ways we could have they had struggled previously to find jobs because employers never achieved before.” almost always ask for previous experience. Now, these interns Adasha Castillo, Copán Regional not only are able to add to their professional experiences, but Office Intern. most have used this opportunity to further their university studies or establish a small business.

Activities to be initiated or intensified next quarter.  Continue promoting the development of the 26 municipal agendas in coordination with SGJD (2.3.10).

Collaborating, Learning and Adapting (CLA) Agenda AGENDA ACCOMPLISHMENTS The Activity’s CLA Agenda outlines opportunities throughout the year to collaboratively pause and reflect so challenges, lessons learned, and adaptive measures can be identified on a continuous basis. The CLA agenda focuses on pinpointing the “why” behind results or lack thereof. To achieve this, the Learning and Adapting team facilitates CLA meetings, which are held at two levels: regional office management (monthly) and sector teams (quarterly). This quarter, a total of 19 meetings were held, helping the team identify successes and areas of improvement, and leading them to specific adaptation commitments. Annex 9 provides an overview of all CLA meetings held, as well as key lessons learned, and adaptive measures identified. Challenges and Remedial Actions. The following table presents a collection of the most relevant challenges found by regional office staff this quarter, along with the respective remedial actions that were taken or have been proposed.

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Challenges and Remedial Actions

Regional No. Challenge Found Remedial Action Office Authorities were open to discussing CAM Law implementation, and actually requested presentations on the Authorities of the municipality of Cucuyagua were law from HLG to become better-informed. The 1 Copán hesitant to register employees in RENTCAM. presentations clarified the intent of the law and convinced authorities about the benefits, enabling the registration of 56 percent of employees (nine out of 16). There is an over-saturation of Water and It is necessary to share more information of dates and 2 La Paz Sanitation activities carried out by HLG, GEMA, timelines so that each IM/project can develop more accurate ACS and Water for People. calendars. The regional office has made greater efforts to raise WMBs of Santa María have perceived HLG awareness about the true intent of HLG assistance, accountability assistance as complicity with the 3 La Paz explaining that the goals are compliance with the Law of municipality to privatize the service or have the Water and Sanitation and increased accountability to service municipality become the service provider. users, all meant to improve service delivery. Two social audits carried out to OMMs evidence that, despite receiving technical assistance from The regional office has planned a joint workshop with HLG and other donors, they continue to have 4 Lempira Women's Networks for these and other two local OMMs issues in budget execution, not receiving approval that were also audited and reflect similar difficulties. for their POAs, or they are unaware of the municipal budget.

Local APFs have faced annual changes and COMDEs are made up of local government and The regional office promoted the integration of the CCT Secretariat of Education representatives, which has within the COMDE, which was achieved. Once APFs are 5 Lempira limited HLG in finding civil society representatives consolidated for this year, citizens will be better able to within these CSO structures to support citizen influence education service improvements. participation in decisions to improve education.

Many CSO members in rural municipalities have Efforts are being made to expand the civil society members low levels of education, which limits their ability to 6 Ocotepeque involved to encourage more dialogue and understanding for participate in more elaborate participation tools the construction of said tools. like Citizen Agendas. Education service providers no longer had the LEPP monitoring application on their mobile Assistance was provided in downloading the application and phones and/or did not prepare the necessary 7 Ocotepeque using it, highlighting the importance of carrying out LEPP evidence prior to using the application for the first monitoring. time, which resulted in them not carrying out the exercise. The municipalities of Chinda and Concepción del Norte do not have CCTs, and this is linked to the Meetings will be carried out with the corresponding local 8 Santa Bárbara low citizen participation accomplished in these governments to explain the importance of establishing CCTs. locations. The Personnel Administration Units of most Dedicated workshops and technical assistance will be municipalities requires strengthening, as they have 9 Santa Bárbara provided to strengthen these units, so that CAM Law shown to have limited capacity in achieving the implementation can improve. implementation of the CAM Law.

School network directors from Chinda, , Protección and San Marcos may not continue HLG is supporting the appointment of new directors to 10 Santa Bárbara employment due to work licenses and retirement, establish communication with the new figures and get them which negatively impacts the continuation of the up-to-speed with the work the Activity has been promoting. assistance HLG has provided since FY 2018. Some school network directors have limited Assistance to find a solution was provided, which has 11 Santa Bárbara knowledge in technology and are unable to use the resulted in these directors delegating this responsibility to LEPP monitoring app. assistant teachers within the school network. Most communities do not have Educational Development Councils (CDEs), and the existing The Activity has coordinated with the Honduras Reading 12 Santa Bárbara ones are not active, which prevents the Activity Activity, as one of their objectives is to ensure every from carrying out work according to the community has these structures. corresponding Work Plan activity.

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Lessons Learned. The following are lessons that have been learned in the field throughout work with beneficiaries this quarter.

Lessons Learned

No. Regional Office Lesson

It is important to keep municipal councils informed regarding the assistance the Activity is providing to different municipal staff members so that they are aware of actions being carried out. For example, the municipal council of Corquín requested inclusion in the processes to prepare the local citizen agenda and education public policy 1 Copán because it was unaware that municipality staff members had been participating as authorized by the mayor or vice mayor. The regional office determined that it would send a letter at the end of every month so that it can be read during the municipal council's meeting and inform them of upcoming assistance. Taking initiative in seeking coordination with USAID Implementing Mechanisms is an effective method to 2 La Paz expand the Activity's coverage, as this has been particularly favorable to further work in the education, nutrition, local governments and with civil society. Taking a holistic approach to executing activities (technical assistance, oversight mechanisms, follow-up, 3 Lempira strengthening local actors) helps identify opportunities to achieve goals simultaneously as opposed to carrying out actions separately, allowing for more progress. Collaborative planning among IMs to pitch ideas to beneficiaries in attractive manners is effective to get their 4 Ocotepeque cooperation. This was learned following the HLG and TMS joint presentation to the Municipality of San Marcos, which expressed greater interest to implement DEL initiatives and is now advancing in doing so. As evidenced in Chinda and Macuelizo, inv iting women's networks to participate in town hall meetings is effective for them to propose and achieve agreements and become informed of municipal resources they can 5 Santa Bárbara seek to leverage, such as the 5 percent of the municipal budget that is allocated to the Municipal Women's Office (OMM).

School Network accountability assemblies are effective at jump -starting improvement towards education 6 Santa Bárbara indicators, but it is necessary for education authorities, APFs and other CSOs to follow-up on the agreements made at these events to ensure commitment and progress.

It is key to address the topic of immigration, given that the reduction of enrollment has become evident in 7 Santa Bárbara some School Networks because families are migrating.

Activities to be initiated or intensified next quarter.  Mid-term application of Service Management Index (SMI) to service providers to measure progress against baseline (2.2/3). Monitoring and Evaluation: Progress Measured by Indicators. This quarter, most indicators show favorable performance, and some have been fulfilled beyond expectations. For example, Indicator 1.1.2 that measures the number of CSOs that received technical assistance for advocacy shows performance beyond the annual target, given that the Activity worked with new CSOs to improve their institutional strengthening and prepare them to participate in advocacy and decision-making events for service delivery improvements. As a result, CSOs carried out 53 oversight mechanisms and prepared 52 documents with recommendations, which in turn also led indicators 1.2.1 and 1.2.2 to reach accomplishment beyond annual targets (114 percent and 117 percent, respectively). This also led CSOs to advocate for public policies to be adopted and approved, leading Indicator 1.2 to reach 89 percent of accomplishment. Out of the indicators that measure progress for Result 1, two of them require special attention to ensure the annual targets are reached: Indicator 1.3 that measures the percentage of oversight mechanism recommendations implemented, and Indicator 1.1.1 that measures the rate of citizen participation in service delivery decision-making (72 percent and 76 percent progress achieved, respectively). It is important to note that substantial progress was achieved for Indicator 1.1.1 through the local government Accountability Day events held in January, where CSOs presented proposals to improve local services. Out of the indicators that track progress for Result 2, Indicator 2.2.1 that measures the number of service providers receiving assistance to improve performance shows 97 percent progress, as HLG focused on providing assistance to guarantee that providers can improve their SMI scores and contribute to Indicator 2.1.1, which measures the percentage of good accountability practices implemented by them. The Activity also continued assisting local governments in human resource management improvement through RENTCAM

27 | FY 2019 // QPFR 2

employee registrations (Indicator 2.3.2). Considering FY 2018 registrations along with those that have been achieved thus far during FY 2019 for this cumulative indicator, 100 percent of the annual target has been reached. Another indicator that surpassed the annual target was 2.3.3- number of sub-national government entities receiving USG assistance to improve performance- due to the variety of technical support provided. The Activity’s objectives also include supporting gender equality and female empowerment in public or private sector roles, which is measured by Indicator CC1 that shows 96 percent of progress. This was achieved through a series of trainings on female empowerment, gender and new masculinities. The only indicator under Result 2 that shows performance below 25 percent is the one measuring the number of infrastructure projects designed and supervised, which is advancing slowly due to the extensive process required to develop designs. The following table shows the specific progress accomplished under all Activity indicators:

FY 2019 Q2 FY 2019 Current # Indicator Perfor FY 2019 Cumulative Target Previous mance

Baseline Q2 Q1 HLG GOAL: Local Service Systems Improved Percentage of citizens satisfied with the PG1 81% n/a n/a n/a n/a n/a local services. Education n/a n/a n/a n/a n/a Percentage of citizens that Health n/a n/a n/a n/a n/a PG2 improve their perception n/a 24 of service quality. Nutrition n/a n/a n/a n/a n/a Water n/a n/a n/a n/a n/a Result 1. Civil Society influence, through evidence, increased Civil society influence index for local 1.1 34.8 25 n/a n/a n/a 39.8 n/a service improvement. Number of public polices introduced, 1.2 adopted, repealed, changed, or 0 33 47 80 90 89% implemented consistent with citizen input. Percentage of recommendations being 1.3 implemented that have been subject to 0 9% 14.3% 21% 26 30% 72% external oversight mechanisms. Sub -Result 1.1 Citizen participation in service delivery decision -making strengthened Citizen’s participation rate for decision 1.1.1 10% 2.4% 6.0% 27 8.4% 11% 76% 28 making related to the provision of services. Number of CSOs receiving USG assistance 1.1.2 0 147 119 266 200 133% engaged in advocacy interventions. Sub -Result 1.2: Evidence based citizen oversight of service delivery increased Number of documents with recommendations to improve service 1.2.1 0 222 29 52 274 240 114% delivery presented by CSOs that comply with a quality checklist. (Cumulative)

24 Since Indicator PG2 refers to the percentage of citizens that improve their perception of service quality, HLG estimated the percentage of citizen that fall into each perception category defined in the PIRS. This base value will be used to measure improvement for the 2021 indicator calculation. 25 Estimated value according to the MELP modification approved by USAID in January 2019. 26 This percentage does not correspond to the sum of Q1 and Q2 values since the total of recommendations in the denominator of Q1 is less than the total forQ2. 27 Total participation for Q2 is 21,320 people. 28 Indicator performance for Q2 is 76 percent in relation to the established target to FY 2019. 29 Cumulative indicator, 182 documents with recommendations from FY 2018 and 40 from FY 2019 Q1.

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Number of mechanisms for external 1.2.2 oversight of public resources use supported 0 227 30 53 280 240 117% by USG assistance. (F) cumulative. Result 2. Local service providers’ performance improved Local 40.5% n/a n/a n/a 45.5% n/a Governments School Networks 33.8% n/a n/a n/a 38.8% n/a

Change in the Service DDE 46.1% n/a n/a n/a 51.1% n/a Providers’ 2.1 DME 39.8% n/a n/a n/a 44.8% n/a Management Capacity Index. 31 Health Service 44.7% n/a n/a n/a 49.7% n/a Providers Mancomunidades 56.5% n/a n/a n/a 61.5% n/a WMB 37.2% n/a n/a n/a 42.2% n/a Sub -Result 2.1: Accountability of services providers increased Percentage of good accountability practices 2.1.1 implemented by the service providers n/a 32 n/a n/a n/a 20% n/a supported by HLG. Sub -Result 2.2: Service provider’s capacity to manage service delivery improved Number of service providers receiving 2.2.1 0 445 252 696 720 97% assistance to improve their performance. Number of small infrastructure projects 2.2.2 supported by HLG to improve local 0 0 0 0 10-25 0% services. Sub -Result 2.3: Local government’s administrative management capacity increased Percentage change in municipal service 2.3.1 -7% n/a n/a n/a n/a n/a investment. Percentage of municipal career servant positions that are included in the national 2.3.2 0 11.6% 9% 20% 33 20% 100% system of registration of municipal employees (CAM). Number of sub -national government 2.3.3 entities receiving assistance to improve 0 84 4 88 80 110% their performance.

Number of persons trained with USG assistance to advance outcomes consistent with gender equality or female 152M 330M 482M 600M CC1 0 96% empowerment through their roles in public 475F 482F 957F 900F or private sector institutions or organizations.

30 Cumulative indicator, 189 mechanisms for external oversight from FY 2018 and 38 from FY 2019 Q1. 31 In accordance with the first MELP modification, a simple average disaggregated by service provider is being used. 32 Since Indicator 2.1.1 refers to the percentage increase in the use of good accountability practices, HLG collected all data on accountability practices for all targeted service providers in 2018. This base value will be used to measure improvement for the 2019 indicator calculation. 33 The total number of employees registered in RENTCAM to date is 219 of 1,078 required at the end of FY 2019 Q2.

29 | FY 2019 // QPFR 2

Contract Deliverables and Fee Report. The following table shows the status of deliverables as of Quarter 2, showing those that have been submitted thus far pertaining to FY 2019. Approved/Agreed Document Submitted Uploaded to DEC/DDL Upon One every two weeks from October 12, Submissions approved Not applicable (NA) Bi-weekly Updates to TOCOR 2018- September 27, 2019 (14) Annual Work Plan (Y3) August 1, 2018 September 25, 2018 NA Environmental Mitigation and Umbrella EMMPs for Nutrition and NA NA Monitoring Plan Education Activities approved Version 1 submitted: January 20, 2017 Version 1 approved: NA September 29, 2017 Monitoring, Evaluation, and Learning Version 2 submitted*: September 28, Plan Revision 2018 Version 2 approved: January 15, 2019 *based on implementation during FY2017/2018, the Activity submitted a modified MELP QPFR 1- January 30, 2019 February 25, 2019 Pending Quarterly Performance and Financial QPFR 2- April 30, 2019 Pending approval Upon approval Reports (3) QPFR 3- Not yet due Not yet due Upon approval Newsletter 1- April 30, 2019 Submitted April 30 Upon approval (pending approval) Semi-Annual Newsletter (2) Newsletter 2- Not yet due Upon approval Not yet due

Annual Performance Report Not yet due Not yet due Upon approval Annual Report on Non-Expendable Not yet due Not yet due N/A Property

Financial Report

30 | FY 2019 // QPFR 2

31 | FY 2019 // QPFR 2

Annex 1: Technical Assistance Summary by Sector (FY 2019 Q2)

Please click on each icon to see each sector’s file: Technical Assistance Summary by Sector (FY 2019 Q2) Civil Society Mancomunidades

TA_Civil Society.xlsx TA_Mancomunidade s.xlsx

Education Water and Sanitation

TA_Education.xlsx TA_Water and Sanitation.xlsx

Nutrition Local Governments

TA_Nutrition.xlsx TA_Local Governments.xlsx

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Annex 2: Progress by Sub-Activity, divided by Sector

Please click on each icon to see files by sector

Progress by Sub-Activity divided by Sector

Civil Society Mancomunidades Education

Result 1 Civil Sub-Activities_Manc Sub-Activities_Educat Society.docx omunidades_Q2.docx ion_Q2.docx

Water and Sanitation Nutrition Local Governments

Sub-Activities_Water Sub-Activities_Nutriti Sub-Activities_Local and Sanitation_Q2.docx on_Q2.docx Governments_Q2.docx

Crosscutting Initiatives

Sub-Activities_Crossc utting_Q2.docx

33 | FY 2019 // QPFR 2

Annex 3: Municipal Regulation on Patronatos – La Labor

1407_RglmentoMunp lPatrontos.pdf

Annex 4: Total RENTCAM registrations supported by the Activity since FY 2017 Positions Employees Registered in Department Municipality Subject to CAM RENTCAM Law San Pedro de Copán 11 8 73% Concepción 9 4 44% San Agustín 12 4 33% Copán Cabañas 16 11 69% San Juan de Opoa 13 6 46% Dolores 9 6 67% Cucuyagua 16 9 56% Jesús de Otoro 20 14 70% San Marcos de Sierra 16 9 56% Intibucá Yamaranguila 9 5 56% Camasca 8 6 75% Cabañas 11 7 64% Santa Elena 10 6 60% Yarula 11 5 45% Opatoro 7 5 71% La Paz Santa María 10 5 50% Chinacla 9 7 78% Santa Ana 10 1 10% San Pedro de Tutule 10 8 80% Valladolid 9 8 89% Tomalá 10 1 10% Lempira Gracias 26 16 62% San Marcos de Caiquín 9 3 33% San Sebastian 8 5 63%

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Las Flores 13 6 46% Lepaera 17 7 41% San Andrés 7 1 14% San Francisco del Valle 16 11 69% Mercedes 13 9 69% Ocotepeque San Marcos de Ocotepeque 21 1 5% 9 5 56% San Nicolás 11 4 36% San Vicente de Centenario 9 3 33% Santa Bárbara El Níspero 10 6 60% Nuevo Celilac 9 4 44% Santa Rita 10 3 30% Total 36 424 219 52%

Annex 5: Status of Infrastructure Designs

LISTADO 16 PROYECTOS EN DISENO.xlsx

Annex 6: Lower Level Indicators

Low_Level_Ind.xlsx

Annex 7: Coordination with other IMs (Lower Level Indicator 10)

Annex_Coordination with IMs IPs and Other Donors.docx

Annex 8: Success Stories

Newsletter ENG - FINAL.pdf

35 | FY 2019 // QPFR 2

Annex 9: Consolidated CLA report (Spanish)

Informe CLA Consolidado_Q2.docx

36 | FY 2019 // QPFR 2