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Annual Quality Assurance Assessment (AQAA) of LGCDP II LGCDP II Annual Quality Assurance Assessment (AQAA) 30 June 2015 Final version AQAA Team: Mr. Rune Qvale, Team Leader Ms. Kanta Singh, Governance Expert Mr. Bishwa Basaula, PFM Expert List of Acronyms AMEP Annual Monitoring and Evaluation Plan LGCDP Local Governance and Community Development Programme AQAA Annual Quality Assurance Assessment LGRC Local Governance Restructuring Commission ASIP Annual Strategic Implementation Plan LGAF Local Governance Accountability Facility ATAP Annual Technical Assistance Plan LIP Livelihood Improvement Plan AWP Annual Work Plan LLP Local Level Planning CAC Community Awareness Center LSGA Local Self Governance Act CD Capacity Development LSGR Local Self Governance Regulation CFLG Child Friendly Local Governance LSP Local Service Provider CMC Community Mediation Center MCPM Minimum Condition and Performance Measures CSO Civil Society Organization M&E Monitoring and Evaluation DAG Disadvantaged Group MoFALD Ministry of Federal Affairs and Local Development DDC District Development Committee MTBF Medium Term Budget Framework DIMC Decentralization Implementation MNCs Municipalities Monitoring Committee D/MSMC District/Municipality Social Mobilization NAC National Advisory Committee Committee DP Development Partner NPPR Nepal Portfolio Performance Review DTCO District Treasury Controller Office NSP National Service Provider DTO District Technical Office OAGN Office of the Auditor General Nepal EDR Eastern Development Region OSR Own Source Revenue EFLG Environment Friendly Local Governance PAF Poverty Alleviation Fund EMP Environment Management Plan PCU Programme Coordination Unit EO Executive Officer PETS Public Expenditure Tracking Survey FAMP Financial Administration and Management PPMO Public Procurement Monitoring Office Package FCA Foreign Currency Account ProDoc Programme Document FCGO Financial Comptroller General Office PPSF Programme and Policy Support Facility FMR Financial Monitoring Report QA Quality Assurance FRA Fiduciary Risk Assessment RCU Regional Coordination Unit FRRAP Fiduciary Risk Reduction Action Plan REFLECT Regenerated Frierean Literacy through Empowering Community Technique FY Fiscal Year RRRSDP Rural Reconstruction and Rehabilitation Sector Development Program GESI Gender Equality and Social Inclusion SALGp Strengthening the Accountability of Local Governance programme GoN Government of Nepal SIP Strategic Implementation Plan GGS Good Governance Section SM Social Mobilizer GRB Gender Responsive Budgeting SNRTP Strengthening the National Rural Transport Program ICT Information and Communication SPMP Strengthening Public Management Technology Programme IPFC Integrated Plan Formulation Committee TA Technical Assistance IPT Integrated Property Tax TAF Technical Assistance Framework JFA Joint Financing Arrangement TASC Technical Assistance Sub-Committee JFTA Joint Financing Technical Assistance ToR Terms of Reference LBs Local Bodies U/DGE Urban/District Governance Expert LBFC Local Body Fiscal Commission VDC Village Development Committee LBRMMOG Local Body Resource Mobilization and VER Vital Event Registration Management Operational Guideline LDF Local Development Fund WBRS Web Based Reporting System LDTA Local Development Training Academy WCF Ward Citizen Forum AQAA - June 2015 Final version Page 2 of 54 Table of Contents EXECUTIVE SUMMARY ........................................................................................................................................... 4 INTRODUCTION ..................................................................................................................................................... 6 METHODOLOGY ..................................................................................................................................................... 6 PROGRAMME PROGRESS ....................................................................................................................................... 8 OUTPUT 1: CITIZENS AND COMMUNITY ORGANIZATIONS ARE EMPOWERED TO ACTIVELY PARTICIPATE AND ASSERT THEIR RIGHTS IN LOCAL GOVERNANCE ...................................................................................................................................................... 8 OUTPUT 2: ACCOUNTABILITY MECHANISMS FOR LOCAL GOVERNANCE ARE IN PLACE ............................................................... 13 OUTPUT 3: LOCAL BODIES’ ACCESS TO RESOURCES INCREASED ........................................................................................... 15 OUTPUT 4: PUBLIC FINANCIAL MANAGEMENT SYSTEM IMPROVED ..................................................................................... 18 OUTPUT 5: INSTITUTIONAL AND HUMAN RESOURCE CAPACITIES OF LBS AND CENTRAL LEVEL AGENCIES INVOLVED IN LOCAL GOVERNANCE STRENGTHENED ........................................................................................................................................ 23 OUTPUT 6: ACCESS TO AND QUALITY OF LOCAL INFRASTRUCTURE AND OTHER SOCIO-ECONOMIC SERVICES ADMINISTERED BY LBS ARE IMPROVED.................................................................................................................................................................. 25 OUTPUT 7: STRENGTHENED INTEGRATED PLANNING, BUDGETING, MONITORING AND EVALUATION AND COORDINATION AMONGST LOCAL GOVERNANCE ACTORS ......................................................................................................................................... 28 OUTPUT 8: REFINED POLICY ON LOCAL GOVERNANCE AND IMPROVED INTER-AGENCY COOPERATION .......................................... 32 OUTPUT 9: POLICIES DEVELOPED FOR DEVOLUTION AND FEDERALISM .................................................................................. 33 LGCDP II PROGRESS REPORTING .................................................................................................................................... 34 PROGRAMME MANAGEMENT AND EXECUTION .................................................................................................. 35 JFA COMPLIANCE ........................................................................................................................................................ 35 POLICY COMMITMENTS ................................................................................................................................................ 37 INTERNAL QUALITY ASSURANCE AND CONTROL ................................................................................................................. 37 ANNUAL PLANNING ..................................................................................................................................................... 38 EFFECTIVENESS AND QUALITY OF INPUTS .......................................................................................................................... 40 CONCLUSION AND NEXT STEPS ............................................................................................................................ 42 ANNEXES ............................................................................................................................................................. 44 ANNEX 1: TOR FOR AQAA TEAM ................................................................................................................................... 44 ANNEX 2: FIELD VISIT SCHEDULE ..................................................................................................................................... 47 ANNEX 3: CENTRAL LEVEL INTERACTIONS ......................................................................................................................... 49 ANNEX 4: JFA COMMITMENTS ....................................................................................................................................... 51 ANNEX 5: POLICY COMMITMENTS .................................................................................................................................. 53 ANNEX 6: ASIP TIMELINE ............................................................................................................................................. 54 AQAA - June 2015 Final version Page 3 of 54 Executive Summary The purpose of the Annual Quality Assurance Assessment (AQAA) is to give LGCDP II stakeholders an independent assessment of implementation progress against output indicators as reported by the programme and an assessment of the extent programme management and execution is implemented consistent with its design. Thus the AQAA should be seen as a diagnostic tool, which highlights how far the LGCDP II implementation and management are on or off track and identifying areas for improvement. LGCDP II is being implemented in a challenging environment where civil servants are operating without local elected councils since their mandate expired in 2002. The local governance structure is complex with 75 District Development Committees (DDCs), 191 Municipalities following announcement of 133 new Municipalities in two rounds in 2014, and 3,276 Village Development Committees (VDCs). The nature of the sub-national governance structure causes strain on government finances and are considered administratively weak, especially in VDC level and in new Municipalities. This structure is likely to change following the recent political agreement on establishing an eight-province federal model. The establishment of the Ward Citizen Forums (WCFs) by LGCDP has introduced an interim arrangement to undertake many
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