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Sector Grant and Budget Guidelines FY 2017/18 THE REPUBLIC OF UGANDA MINISTRY OF HEALTH Sector Grant and Budget Guidelines FINANCIAL YEAR 2017/18 1 Sector Grant and Budget Guidelines FY 2017/18 Foreword These guidelines are issued by the Ministry of Health to Local Governments to provide information about the sector conditional grants in preparation of Local Government budget estimates for the Health sector. The guidelines consist of; the national policies for the sector, the role and mandate of Local Governments in the sector, an overview of Central Government grants to Local Governments, an explanation of how these are allocated to each Local Government, and budget requirements for FY 2017/ 18. In FY 2017/18, a total of 512 Billion was appropriated to Local Governments for FY 2017/18 for the delivery of primary health care services. These funds comprise of District PHC Wage of UShs. 291.4 Billion, PHC Non Wage of Ushs. 39.92 Billion, PHC Development of 11.9 Billion, and Medicines budget of UShs. 168.3 Billion. The UShs. 6.7 Billion allocated for Health Sub District (HSD) / Constituency Task Force activities in FY 2016/17 was appropriated under the non wage recurrent budget of public General Hospitals, HC IVs and IIIs. Arising out of that change; i. Each public HCIV was allocated an additional UShs. 7,540,107, ii. Each public HC III was allocated an additional UShs. 2,865,854, and iii. Each Government General Hospital was allocated an additional UShs. 31,023,732 to cater for operational costs. iv. The balance of UShs. 573 million was allocated to some Local Governments to mitigate the effects of the new allocation formula. This is in addition to the FY 2016/17 PHC non wage grant allocations to these health facilities. Following the request by the medical bureaus, 50% of the funds allocated to PNFP health facilities in FY 2016/17 was appropriated under Ministry of Health and constitute a medicines credit line facility at Joint Medical Stores for FY 2017/18. The PNFP health facilities are required to order for essential medicines and health supplies from JMS based on quarterly budgets, and guidelines from Joint Medical Stores and Ministry of Health. I therefore call upon all Local Government Accounting Officers to ensure that the health sector detailed work plans including budget allocations to health facilities are finalized on time in line with these Sector Grant and Budget guidelines for FY 2017/18. Dr. Diana Atwine PERMANENT SECRETARY 2 Sector Grant and Budget Guidelines FY 2017/18 Table of Contents Foreword ................................................................................................................................. 2 Table of Contents ................................................................................................................. 3 Chapter One .......................................................................................................................... 5 1.0 Introduction ................................................................................................................................ 5 1.1 National Sector Policy Priorities ........................................................................................... 5 1.2 Roles, responsibilities and mandate of Local Government ......................................... 5 1.3 Purpose of the Guidelines ...................................................................................................... 6 1.4 Health Sector Strategic approaches to improve Health Service Delivery ............... 6 1.5 Reform on Consolidation of Local Government Fiscal Transfers .............................. 7 1.6 Role of the Ministry of Health in the Management of LG Transfers ......................... 8 1.7 Role of Sector Ministries and Agencies in the Management of LG Transfers ........ 9 Chapter Two ......................................................................................................................... 11 2.0 Overview of the PHC Service Delivery System ............................................................... 11 2.1 Mandates of Local Governments ........................................................................................ 12 2.2 Role of the District Health Office ....................................................................................... 12 2.3 Role of the Municipal Health Office .................................................................................. 14 2.4 Role of the Heath Sub-District ........................................................................................... 15 2.5 Role of the Community / VHT (HC I) ................................................................................ 16 2.6 Role of Health Centre II ......................................................................................................... 16 2.7 Role of Health Centre III ....................................................................................................... 17 2.8 Role of Health Centre IV ....................................................................................................... 17 2.9 Role of the General Hospital ................................................................................................ 17 Chapter Three ..................................................................................................................... 19 3.0 Health Sector Grants and Allocation Formula/ Guidelines FY 2017/18 ............. 19 3.1 Overall Structure and Purpose of transfers and Overall Allocations ..................... 19 3.2 Grant Allocation Formula..................................................................................................... 20 3.3 Grant Utilization Guidelines ........................................................................................ 21 3.3.1 PHC Conditional Wage Recurrent Grant ...................................................................... 21 3.3.2 PHC Conditional Non Wage Recurrent Grant ............................................................. 22 3.3.3 PHC Development Grants ................................................................................................. 25 3 Sector Grant and Budget Guidelines FY 2017/18 3.3.4 Development Project Implementation ........................................................................... 27 3.3.5 Changes in projects to be implemented ................................................................... 27 3.3.6 Development Project Progress Reports ......................................................................... 27 Chapter Four ....................................................................................................................... 28 4.0 Public Subsidies for PNFPs and PHPs ............................................................................ 28 4.1 Criteria / Guidelines for Access of Public Subsidies by PNFPs and Private Health Providers ...................................................................................................................... 28 Chapter Five ........................................................................................................................ 31 5.0 Medicine Procurement, Supply and Management for Public Health Facilities... 31 5.1 Guidelines on Medicine Procurement, Supply and Management for public health facilities......................................................................................................................... 31 5.2 Guidelines on Medicine Procurement, Supply and Management for Private Not For Profit health facilities ..................................................................................................... 33 Chapter Six .......................................................................................................................... 36 6.0 ANNEXES .................................................................................................................................. 36 Annex I: Copy of the MOU Between the GoU and PNFP Health Service Providers 36 Annex II: Copy of Memorandum of Understanding between the DLG and PNFP Health Service Providers for FY 2017/18 ...................................................................... 44 Annex III:............................................................................................................................................ 48 Copy of MOU between the GoU and the JMS for EMHS Credit Line for the Private Not for Profit Health Sector .................................................................................................. 48 Annex IV: Planning and Budget Calendar for LG Institutions ................................. 49 Annex V: Indicative Planning Figures for FY2017/18 ............................................... 52 Annex VI: Breakdown of PHC Non-Wage Recurrent (NWR) to Health Facilities and District/ Municipal Health Offices ........................................................................... 58 Annex VII: Transitional Development Health Ad Hoc Beneficiary Health Facilities for FY2017/18 ......................................................................................................................... 61 Annex VIII: PHC Non-Wage Grants Detailed Health Facility Allocations (Direct Transfers) For FY 2017/18 .................................................................................................. 62 Annex IX: PHC NWR Funds for PNFP Health Facilities at JMS for Medicines FY 2017/18 ..................................................................................................................................
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