Civil Society Influence, Through Evidence Increased

USAID/HONDURAS Honduras Local Governance Activity Annual Performance Report October 01, 2019 - September 30, 2020

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: October 30, 2020

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.

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TABLE OF CONTENTS Executive summary 8 Result 1 - Civil Society Influence, Through Evidence Increased 10 Sub-Result 1.1 Citizen participation in service delivery decision-making strengthened 10 Sub Result 1.2 Evidence-based citizen oversight of service delivery increased 12 Result 2 Local Service Provider Performance Improved 15 Sub Result 2.1 Accountability of Service Providers Increased 15 Sub Result 2.2: Service Provider’s Capacity to Manage Service Delivery Improved 19 Sub Result 2.3 Local Government administrative management capacity increased 21 Local Government Management to Reduce Migration and Promote Local Economic Development 27 Coordination with USAID IMs, IPs and Other Donors 30 Crosscutting Themes 33 Collaborating, Learning and Adapting (CLA) Agenda 35 Grantee Report 42 Financial Report 43 Annual Report on Non-Expendable Property 45 Annex 1: Technical Assistance Summary by Sector (FY 2020) 46 Annex 2: Progress by Sub-Activity, divided by Sector 46 Annex 4: CCTT Social Auditing Tool 46 Annex 5: IAIP Scores 46 Annex 6: Basic Biosecurity Practices Course 46 Annex 7: Status of CAM Law Implementation 46 Annex 8: Lower Level Indicators 46 Annex 9: Success Stories 46 Annex 10: Counterpart Contribution 46

iii | FY 2020 // ANNUAL REPORT 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 BPA Blanket Purchase Agreements CAM* law Municipal Administration Career law CEN Nutritional Training Centers CENISS National Center for Social Sector Information CEB* Basic Education Center CCT* Citizen Transparency Commissions CCTT* Territorial Citizen Transparency Commission CDE * Center for Entrepreneurial Management CIT* Indigenous Transparency Committee CJAS* Youth Social Auditing 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 CRS Catholic Relief Services CSO Civil Society Organization DDE* Departmental Education Directorate DLAL USAID Honduras Reading Activity DME* Municipal Education Directorate DO1 Development Objective 1

iv | FY 2020 // ANNUAL REPORT DO2 Development Objective 2 DR Director of School Networks FHIS* Honduran Fund for Social Investment FONAC National Convergence Forum FUNDAUNAH* Foundation of the National Autonomous University of Honduras FUNIDE Intibucan Foundation for Development* FY Fiscal Year GBV Gender Based Violence GOH Government of Honduras GUC Grants Under Contract 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 INFOP National Institute of Professional Training IOM International Organization for Migration 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 MELP Monitoring, Evaluation and Learning Plan MERECE * Round Table of Cooperators in Education MESCLA Monitoring and Evaluation Support for Collaborative Learning and Adapting M&E Monitoring and Evaluatio n MOU Memorandum of Understanding NAS Network Attached Storage NGO Non -Governmental Organization OCAT Organizational Capacity Assessment Tool

v | FY 2020 // ANNUAL REPORT OCDIH Christian Organization for Integrated Development of Honduras ODK Open Data Kit OIP Public Information Officers 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 PPE Personal Protective Equipment PPLE Public Policies for Education Q1 First Quarter Q2 Second Quarter Q3 Third Quarter Q4 Fourth Quarter QR code Quick Response Code QRMA Quality Reading Materials Activity Red ITC Community Technical Institute Network RENTCAM* National Registry of Municipal Administration Career Technicians RFA Request for Applications SAFT* Integrated System for Municipal Financial Tributary Management SAMI* Integrated 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* School Networks Administrative System SIARH* Integrated System of Administration of Human Resources SINAGER * National Risk Management System SGJD* Secretariat of Governance, Justice and Decentralization SMI Service Management Index UDEL* Unit of Local Economic Development UGD* Unit of Decentralized Management UMA* Municipal Environmental Unit UMAP * Municipal Personnel Unit

vi | FY 2020 // ANNUAL REPORT UMAR Municipal Unit of Attention to Returned Migrants UNAH National Autonomous University of Honduras UNITEC Central American Technical University USAID U.S. Agency for International Development USCL* Supervision and Local Control Unit USINEH * Unit of the National System of Educational Information of Honduras USG United States Government WMB Water Management Board

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

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Executive summary Fiscal Year (FY) 2020 was a year of adaptation. At the start of the year, the Honduras Local Governance Activity (HLG) began preparing to close the project due to funding restrictions. In March 2020, COVID-19 arrived in Honduras and forced the nation into a seven-month and counting quarantine period. The Activity responded to this challenge by adapting its technical assistance model (see Exhibit 13) and redirecting over in donated supplies and medical equipment to support local actors on the frontline of the pandemic (See Sub-Result 2.3, Special Report on HLG’s Pandemic Response). By the close of the year, the Activity had received in additional obligation to support the COVID-19 response and recovery and was again planning to accelerate implementation in the 40 municipalities as well as five new municipalities under Development Objective 1 (DO1). Under Result 1, citizen influence continued to spark local government and service provider action to improve local service delivery. From October to March, civil society played key roles in monitoring local government’s human resource management, participating alongside local governments in decision-making spaces such as the January Accountability Events and monitoring municipal transparency plans. Cumulatively, both before and during the pandemic, the Activity supported citizens, local governments and service providers to implement 105 recommendations stemming from citizen oversight and approve 40 public policies. Many of these recommendations and policies allowed for local governments and service providers to improve quality and/or access to critical services during the pandemic. For example, in the Jesús de Otoro municipality and as a result of the implementation of citizen recommendations, water management boards (WMB) are institutionalizing management mechanisms, such as cleaning schedules and operation plans to provide access to clean water, which is vital to combat COVID-19. Strengthened by four years of technical assistance from the Activity, civil society was prepared to put the learned skills and knowledge in social oversight into practice as they turned their focus to the COVID-19 crisis and the urgent needs of their communities. Citizens provided effective oversight of the distribution of humanitarian aid through the Government of Honduras’ (GOH) Bolsa Solidaria and Fuerza Honduras1 programs. For example, within the Activity’s 40 target municipalities, 38 Citizen Transparency Commissions (CCTs) actively monitored the distribution of donations to ensure essential supplies reached approximately 97,993 households in need. To institutionalize youth participation in the oversight process, the Activity also strengthened seven Youth Social Auditing Commissions (CJAS) and financed a new internship position to coordinate their oversight of local governments’ response to the pandemic. Under Result 2, the Activity continued supporting citizens, local governments, and service providers to work together to build a culture of transparency. Local governments not only implemented Municipal Transparency Plans developed during the prior fiscal year but committed to another year of transparent management by approving the next iteration of the plans with citizen input. Department, municipal, and school network education officials also continued to demonstrate a deepening culture of transparency by applying the approved supervision model through the application developed with the support of HLG. The pandemic compounded the importance of these digital tools. Notably, the Secretariat of Education (SEDUC) implemented virtual class monitoring at the national level by modifying the digital supervision application, leveraging USAID’s investment in training, technical assistance, and development of Information Communication Technology (ICT) tools. The local government of Valladolid similarly capitalized on prior assistance by updating their municipal transparency plan to the context of the pandemic to ensure a more transparent response to the crisis. 82% percent of local governments were able to comply with uploading pandemic-related data to the Institute for Access to Public Information (IAIP) portal. The Activity continued to work with local governments and service providers to strengthen the management and administrative capacities necessary to improve service delivery. Through the Public Policies for Education Framework (PPLE) strong coordination relationships between the education sector, local governments and other donors were established prior to the pandemic, positioning local governments to leverage approximately $363,588 in interinstitutional resources to respond to the crisis and improve education quality. For example, the municipality of San Agustin completed the construction of three new classrooms to benefit 28 students in

1 On July 13, 2020 the Honduras President announced the launch of Fuerza Honduras program to support municipal governments with additional national funds up to $9,926,820 to combat coronavirus by strengthening municipal triage centers. 8 | FY 2020 // ANNUAL REPORT

9th grade and 58 education centers received food donations – improving both infrastructure of education centers and food security during the pandemic. Until the onset of the pandemic in March, the Activity prioritized support to institutionalize the Municipal Administrative Career Law (CAM). Municipal Human Resources (HR) officials began to implement approved CAM Law manuals in coordination with the Technical Secretariat for the Municipal Administration Career Law (SETCAM). As a result, this year 79 municipal employees were registered in the National Registry of Municipal Administration Career Technicians (RENTCAM), bringing the total to 323 cumulatively. During the pandemic, the Activity focused on supporting local governments to respond to the crisis by developing the Municipal Biosafety Protocol and the Virtual Biosecurity course in coordination with the Association of Municipalities of Honduras (AMHON). This course is now available to all municipal employees nationwide. From municipal local economic development (LED) agendas to planning targeted projects in schools to reduce irregular migration, stakeholders came together during the year to discuss the risks of irregular migration and implement strategies to promote community rootedness and local economic growth. In the education sector, 29 targeted projects were developed, focused on preventing irregular migration and promoting rootedness. For example, the school network, Unidos por el Éxito in Jesús de Otoro designed a targeted project to produce, process and market surplus agricultural products, improving the diet of 2,330 students, strengthening students’ capacities for entrepreneurship and incentivizing irregular migration. “The Methodology for the Preparation and Management of Specific Projects focusing on Migration”, co-created by SEDUC and the Activity will be disseminated to all 298 municipalities in Honduras. Given the economic impact of the pandemic, the Activity’s interventions in LED, and the commitment of local actors to continue these efforts, is more important than ever in preventing irregular migration. The Activity supported the development of LED structures and management mechanisms such as LED Agendas and LED roundtables, while sensitizing government and private sector actors on the causes and challenges related to migration. Five municipalities approved their LED Agendas through a participatory process between the local government, private sector, and civil society organizations. As part of a multi-stakeholder collaboration required for economic development, the Activity also invested in three youth entrepreneurship funds, providing economic support to 80 young entrepreneurs to start their own businesses. Not only do these economic opportunities contribute to the reactivation of the national economy, but also promote rootedness in vulnerable youth, helping to curb irregular migration. To further address irregular migration, the Activity implemented the Jovenes Constructores ¡Aquí me quedo! program with partners Catholic Relief Services (CRS) and Community Technical Institute Network (Red ITC). This initiative builds on success from the Activity’s Internship for Inclusion Program, targeting vulnerable youth in six municipalities with technical training to increase employment, entrepreneurship and educational opportunities. Of the 158 youth who graduated, 41 thus far have chosen one of the three solutions promoted by the program: 18 returned to the educational system, 14 launched an entrepreneurship endeavor and nine individuals took both of those actions. Finally, this year’s Annual Performance and Financial Report includes a chapter specifically dedicated to HLG’s COVID-19 response strategy, supporting the work of those on the frontline of the pandemic (See Sub-Result 2.3, Special Report on HLG’s Pandemic Response). The following report presents key advances from October 1, 2019 to September 30, 2020. 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.

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HONDURAS LOCAL GOVERNANCE ACTIVITY: ANNUAL PERFORMANCE AND FINANCIAL REPORT

Result 1 - Civil Society Influence, Through Evidence Increased Theory of Change: For citizens to effectively shape government priorities, CSOs must be organized, understand their role, and be able to analyze and use data effectively to influence decision making.

For local governments and service providers to increase self-reliance in their efforts to reduce poverty and increase prosperity, a continuous, open, and effective dialogue with citizens is critical. This year, civil society continued to employ their skills and knowledge from years of technical assistance to improve service delivery. From overseeing municipal human resource management practices according to the CAM law, local governments executing Municipal Transparency Plans to the delivery of humanitarian aid during the pandemic - citizen oversight mechanisms and management structures mobilized to help ensure transparency. The Activity supported citizens, local governments and service providers to implement 105 recommendations stemming from citizen oversight and approve 40 public policies, achieving 98% of the established annual target and leading to local service improvements. The commitment of civil society actors to continue providing critical oversight work and follow up on the implementation of recommendations and public policies, even during a national emergency, highlights their capacity and commitment to use evidence and data and demand accountable service provision.

Sub-Result 1.1 Citizen participation in service delivery decision-making strengthened Theory of Change: If citizen participate effectively in decision-making processes related to service delivery, then services will better respond to local priorities and contexts and will inspire more effective and transparent relationships between local governments and service providers with their constituencies. Over the year, the Activity supported citizens, local governments and service providers to implement 105 recommendations stemming from citizen oversight conducted during prior years and approve 40 public policies, achieving 98% of the established annual target and leading to local service improvements. Examples range from health centers creating a bathroom cleaning and maintenance schedule to WMB committing to water tank cleaning schedules, annual operation plans and public educational campaigns. Local governments and service providers responded to citizen demand by committing resources to fill gaps in service delivery, notably preparing municipal response before and during the pandemic by improving critical services in health and nutrition, water and sanitation, among other sectors. Citizens’ recommendations improved local service provision, especially in areas critical during the pandemic, such as water, sanitation and health. For any recommendation or public policy to be implemented, it requires sustained citizen participation and continuous monitoring and follow-up. Considering the challenges presented due to the pandemic, civil society demonstrated over the year their commitment to participate in local decision- making to improve service provision. Of the recommendations implemented during the year, several contributed to improved resource and service management which better positioned local governments to respond to the pandemic. The following examples highlight service improvements in water, education and health within four different target municipalities in western Honduras: Jesús de Otoro, La Labor, Dolores and Las Vegas.  Jesús de Otoro, Intibucá: The Camilo Giron Health Center, in coordination with the decentralized health manager of the Mancomunidad de los Municipios del Norte de Intibucá (MAMUNI), responded to recommendations provided by the CCT to improve the health center’s restrooms and management of medications. The decentralized health manager established a cleaning schedule for the restrooms and a maintenance plan to complete repairs when necessary. Additionally, in planning how to execute the center’s budget, the health manager recognized that purchasing medicines needed to be prioritized and planned carefully based on use in order to avoid shortages and the expiration of excess medicines. These improvements to the health center directly benefit 17,000 people and indirectly benefit approximately 54,000 people who are served by the health center in the surrounding area. The implementation of these two recommendations led to improvements in the center’s resource 10 | FY 2020 // ANNUAL REPORT

management and maintenance – two important areas considering the increased demand on health centers during the pandemic.  The Alpes Sector 2 WMB in Jesús de Otoro implemented the citizen recommendation to write and execute an annual operation plan, which includes actionable steps for 2021 to improve water service. For example, the plan includes periodic maintenance activities like cleaning the dam, filters, water conduction line, as well as conducting chlorination and bacterial analysis of the water. Additionally, the plan incorporates provisions to promote spaces for citizen participation including scheduling regular assemblies to discuss current water projects and administration of the WMB, among other topics. The implementation of these two recommendations stemming from citizen oversight improved water service quality, benefitting the 92 people who are served by the Alpes Sector 2 WMB.  La Labor, Ocotepeque: The Dos Pinos WMB complied with three recommendations resulting from civil society oversight to improve water service provision and directly benefit 225 people. As a newly formed water board, it was recommended to write a reinforcement plan to help members enhance their understanding of accountability, legal frameworks and resource management. This knowledge will underpin the WMB’s overall goal of improving the administration of funds and resources, in order to implement water projects that improve service quality. In response to a citizen recommendation, the WMB collaborated with Civil Society Organizations (CSOs), parents and student government representatives to organize an educational campaign for students and parents to guide customers on proper water use, care for water sources, and how to make monthly payments to providers. Additionally, these campaigns provided resources for citizens to contact service providers and schedule meetings, a way to ensure they remain accountable to their customers. The educational campaign was disseminated on local television, radio and through informational pamphlets. Previously, the Dos Pinos WMB had difficulties organizing educational campaigns, an important function to keep the public informed and provide opportunities for citizen participation. As a result, WMB fee collection increased by 25%, as service providers are able to make their monthly payments correctly and on- time.  Dolores, Copán: The Centro Dolores WMB implemented civil society’s recommendation to improve water quality by creating a cleaning schedule for the water tanks, which serves 250 families. The head of the WMB is responsible for confirming that the schedule is followed, with the support of the Municipal Water Unit. Previously, the water tanks were cleaned in an improvised way - without an organized process, established responsibilities or clear guidelines. With the cleaning schedule in place, defining timelines, roles and accountability mechanisms to ensure it is followed, the WMB improves the quality and management of water service in their municipality.  Las Vegas, Santa Bárbara : The QUEANCED school network promoted the creation of 200 family gardens, benefitting six education centers and 534 families with improved access to food. Additionally, as a result of another recommendation from civil society, the school network created a quarterly meetings schedule for teachers, parents and administrators to maintain better organization and family participation in educational events.

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Exhibit 1. Recommendations implemented in FY 2020, stemming from civil society oversight.

Sub Result 1.2 Evidence-based citizen oversight of service delivery increased Theory of Change: If citizens conduct effective oversight of services then they can demand increased accountability and effectiveness, promoting checks and balances within local dynamics. This year, citizen oversight mechanisms and management structures, strengthened by the Activity’s assistance, mobilized to help ensure transparent and accountable service delivery, before and during the pandemic. From October to March, civil society played key roles in monitoring local government’s human resource management, participating alongside local governments in decision-making spaces, by participating in the law mandated Accountability Events, monitoring local government’s adherence to the CAM Law and municipal transparency plans. With the onset of the pandemic in Honduras, civil society turned their focus to the urgent needs of their communities and local governments by overseeing municipal management of emergency funds. The commitment of civil society actors to continue providing critical oversight work even during a national emergency, highlights their self-reliance and full capabilities to demand accountable provision of services. Civil society actors demonstrated their achievements in monitoring the approval and implementation of Municipal Transparency Plans. Each year, local governments are required by the Law of the Municipalities to hold accountability events where they present on expenditures and investments from previous years and share the upcoming fiscal year budget. Assistance was provided to local governments and civil society actors to prepare for the event, which was held prior to the onset of the pandemic. Key highlights in civil society’s participation include:  19 of the 21 local governments who had approved FY 2019 transparency plans prior to the event allowed citizen representatives from CCTs and Municipal Commissioners (CM) to present on efforts undertaken during the previous year. For example, in Cabañas these efforts included citizens continuously monitoring the municipal transparency portal online to verify the local government is regularly updating it with information on municipal spending.  38 local government and citizen representatives collaborated to present FY 2020 Municipal Transparency Plans. In Intibucá’s plan, for example, CSOs are to review WMB accountability reports, participate in oversight of CAM Law implementation, conduct social audits of four WMB and oversee infrastructure projects.

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These public commitments to transparency, coupled with reinforced relationship between citizen and local governments, allow municipalities to continue building a culture of transparency. The situation in Honduras changed drastically since the Accountability Events due to COVID-19, however citizen participation in this year’s events and the apparent strengthened relationship between local government and civil society actors, sets a precedent to be continued in future years. CAM Law monitoring committees improved municipal human resource processes through citizen influence. Municipal human resources management lacking in transparency and meritocracy can result in weaker local government capacity. Through the CAM Law, not only are local governments implementing improved controls and human resources processes, but also allowing for citizen oversight. The Activity worked closely with SETCAM to establish local CAM Law citizen monitoring committees in all 40 target municipalities. Comprised of representatives from local CCTs and CSOs, the citizen monitoring committees as mandated by law were created to institutionalize citizen oversight of municipal human resources management. The committee in each municipality is approved by the mayor and protected by the CAM Law, thereby giving citizens legal protection and a government mandate to provide ongoing feedback on human resources management, and continue this process beyond the life of the Activity. During the first half of the year especially, citizen committees assumed their oversight role and 27 municipalities successfully completed personnel evaluations with citizen oversight. After the onset of the pandemic, technical assistance to the citizen monitoring committees was paused, as it relied on in-person meetings. Additionally, as many members of the monitoring committees also participate in citizen oversight activities, their focus turned to overseeing municipalities’ distribution of humanitarian aid, as described in the following section. Next year, the Activity expects the committees to return to their work overseeing municipal implementation of the CAM law, with technical assistance from HLG. The following examples highlight the impact of citizen oversight of municipal human resources management:  San Pedro de Tutule, La Paz: The citizen monitoring committee detected that a municipal employee was fired without justification. In fact, the committee participated in the employee’s performance evaluation, where the employee received positive feedback. With this information, the citizen monitoring committee explained to the mayor the proper procedures for dismissing an employee within the CAM Law. Knowledge of the CAM law combined with information from continuous oversight empowered the citizen committee to influence the mayor’s decision to re-hire the employee.  Chinacla, La Paz: During a performance evaluation of a municipal employee, the citizen monitoring committee recognized that the Municipal Human Resources Unit demonstrated favoritism toward an individual. The committee intervened in the process to ensure the evaluation remained objective and merit based.  Corquín, Copán: The Deputy Mayor and the head of the Municipal Personnel Unit collaborated with the president of the CCT to determine current weaknesses of 20 municipal staff and develop training plans to strengthen their professional development and improve productivity. Training areas included advanced Excel, budgeting, improving time management, providing quality customer service and writing audit reports. Civil Society exercised their capacity to oversee municipal spending, promoting transparent management of humanitarian aid. In March 2020, COVID-19 emerged in Honduras and the GOH announced the Bolsa Solidaria humanitarian aid relief program to be distributed by local municipalities. Civil society dedicated their efforts to overseeing they delivery of humanitarian aid to prevent corruption and ensure a transparent and accountable donation process. Targeted technical assistance was provided to 40 CCTs, providing training and support to continue their social oversight work. 38 CCT’s actively monitored the distribution of $1,968,688 in essential supplies to 97,993 households through the Bolsa Solidaria program. In order to prevent the misuse of funds, the CCTs reviewed the needs assessment that was completed by the local government and used to determine who would receive the aid. Then, civil society members participated in the delivery process ensuring that those who received the donations, had the greatest need, as determined by the need-based assessment. Furthermore, civil society oversaw the purchasing process of the essential supplies, to ensure adequate competition and quality products, in accordance with procurement documentation (invoices and purchase orders). For example, the CCT in Marcala, continued providing social oversight of the delivery of Bolsa Solidaria well into the last quarter of the year, completing a second round of social auditing. To ensure an inclusive process, the CCT requested support from women’s networks, CJAS, and other CSOs. The Activity strengthened the Marcala CCT’s organizational capabilities by providing trainings on technological tools, such as Google Meet, 13 | FY 2020 // ANNUAL REPORT and designing surveys and checklists to use as a social auditing tool, specifically adapted to the context of COVID-19. Yesamary Rodríguez, coordinator of the Marcala CCT, expressed her gratitude for the skills acquired, “HLG trained us to do this work and today we have the necessary knowledge that we didn’t have before. People see our CCT vests and know that we have credibility and aren’t political. In this emergency, citizens feel safe that the support will arrive in its entirety. Without HLG’s training, this work would be much more difficult.” As an additional example of civil society’s leadership in the social oversight process, the CCT in Santa Ana, La Paz used their approved Municipal Transparency Plan (see Result 2.2) and contacted the Municipal Council to ask for information on the amount of funds allocated specifically to the municipality. With this information the CCT audited and supported the entire process, including the receiving, packaging, and distribution of the food donations. The Santa Ana CCT in coordination with the local government employed their oversight abilities to ensure approximately $53,622 in essential supplies was donated to 2,601 families in need. In addition to offering technical assistance, the Activity supported the safety of the citizens while performing oversight activities with a donation of 122 gallons of hand sanitizer to 41 CCTs (See Sub-Result 2.3, Special Report on HLG’s Pandemic Response). Youth played a key role in overseeing the delivery of humanitarian aid. Stemming from HLG’s 2019 migration case study, this year the Activity continued efforts to promote an increased sense of belonging of youth in civil society. This included assistance to strengthen youth involvement in local decision-making to increase rootedness and ensure that local governments respond to their demands. During previous years the Activity worked to strengthen youth social auditing skills in La Paz through a grant with the Association of Christian Youth (ACJ). Under this grant, ACJ formed and strengthened Youth Social Auditing Committees in 14 municipalities. During FY 2020, CJAS in eight municipalities received tailored trainings to hone their oversight abilities and plan social audits given the current pandemic. As a result, 31 Exhibit 2. CJAS members overseeing the delivery of Bolsa Solidaria. young members of seven CJAS 2 actively participated with CCTs in overseeing the delivery Bolsa Solidaria program, promoting a transparent process and with the aim to ensure that families in need received the donations of essential supplies. Additionally, to further promote the self- reliance of youth oversight mechanisms, Isis Hernández, leader of CJAS in Marcala, received an internship positions to serve as a coordinator of CJAS pandemic response and document best practices of the oversight process. These lessons learned provide the young social auditors with crucial information to continue improving CJAS’ oversight process. The Activity will continue to provide follow-up support to the CJAS, focusing on making the CSOs sustainable beyond the life of the project. Support for CJAS not only institutionalizes the inclusion of youth in social oversight processes and but also reinforces their rootedness to their communities, helping to curb irregular migration. Adapting to oversee Fuerza Honduras donations to triage centers, Civil Society demonstrated versatile social oversight skills . As the COVID-19 emergency evolved, civil society adapted to continue overseeing new aid mechanisms. On July 13, 2020 the Honduras President announced the launch of Fuerza Honduras program to support municipal governments with additional national funds up to $9,926,820 to combat coronavirus by strengthening municipal triage centers. Before and during the crisis, CCTs received training to design and implement social auditing tools, and further enhance their organizational and oversight capacity. Equipped with four years of the Activity’s technical assistance in social oversight, civil society structures in the Activity’s target municipalities were ready to act. For example, in Chinacla, San Andres, San Pedro de Tutule, the CCTs used their acquired auditing skills to work with the National Convergence Forum (FONAC) and lead social oversight of donations provided to three municipal triage centers. The CCTs verified the quantity and current operating conditions of donated items, as well as the biosecurity measures in place. Technical assistance prepared the CCTs to readily collaborate with FONAC, as a national monitoring organization, and promoted their self- reliance as established and credible oversight structures in their municipalities.

2 Of the originally formed 14 CJAS, only 8 remain within HLG’s target municipalities. Of these 8, one CJAS participated but was not able to complete the oversight process. HLG will provide targeted technical assistance to this CJAS, to strengthen their ability to organize as a group and be involved in the oversight process. 14 | FY 2020 // ANNUAL REPORT

As an additional example of civil society applying skills from technical assistance to oversee the Fuerza Honduras program, the Territorial Citizen Transparency Commission (CCTT) formed by the Mancomunidad de Municipios Lencas de la Sierra de La Paz (MAMLESIP) led a social audit of six triage centers. The CCTT is made up of CCTs from six municipalities: Marcala, Santa Ana, Santa Elena, Cabañas, Yarula and Opatoro. Citizens of these municipalities asked for more accountability and public information on the triage centers. Specifically, citizens requested details on the centers’ operations, purchasing processes, patient care and donations from Fuerza Honduras funds. In response to citizen demand, MAMLESIP’s CCTT organized a territorial social audit to assess the service provided by the triage centers in six municipalities. The CCTT received tailored technical assistance to design a social auditing tool, which measures the components of the triage centers: organizational structure, assigned budget, operations, service quality and user satisfaction. The tool consists of a series of checklists, instructions, and organizational templates, which can be adapted and used for different social auditing needs in the future (See Annex 4). By working together with the CCTT to design this social auditing tool, the Activity ensures their sustainability to replicate the process and adapt it as new oversight needs arise. By leading the territorial social audit of six triage centers, the MAMLESIP CCTT demonstrates their self-reliance to work alongside local governments to respond to citizen demand and conduct social oversight, further promoting a sustainable culture of transparency.

Result 2 Local Service Provider Performance Improved Four years of technical assistance strengthened continuous feedback loops between citizens, service providers, and local governments – synergies that proved to be critical in ensuring transparent management and improved service provider capacity. Local governments not only implemented Municipal Transparency Plans, but also improved their use of municipal transparency portals as 82% percent of local governments were able to comply with uploading pandemic-related data to the IAIP portal. Leveraging USAID’s investment in training, technical assistance and ICT tools, the SEDUC led the development and implementation of virtual class monitoring at the national level. Additionally, education authorities leveraged relationships with local and international actors to meet local needs with the implementation of public policies for education and recommendations from civil society. As a result of citizen demand and targeted assistance provided education service providers and local governments continued to improve performance by institutionalizing accountability mechanisms, improving their management and administration capacity. prioritized support to institutionalize the CAM Law with Municipal Human Resources officials in coordination with SETCAM. During the pandemic, the Activity focused on supporting local governments to respond to the crisis by developing the Municipal Biosafety Protocol and the Virtual Biosecurity course in coordination with AMHON and Empleando Futuros. The following section details advances under Result 2: Local Service Provider Performance Improved.

Sub Result 2.1 Accountability of Service Providers Increased Theory of Change: If service providers are more accountable then a more transparent use of resources can be achieved promoting citizens’ confidence in institutions and good governance.

Initiatives under Sub-Result 2.1 include strengthening local governments’ and service providers’ management and administrative capacities to improve service delivery. With in-person classes suspended, SEDUC implemented virtual class monitoring at the national level, leveraging USAID’s investment in training, technical assistance, and development ICT tools, to collect and analyze data to improve the virtual education service offered during the pandemic. Through the PPLE, strong coordination relationships between the education sector, local governments and other donors were established prior to the pandemic, positioning local governments to mobilize interinstitutional resources to respond to the crisis and improve education quality. For example, as a product of virtual class monitoring, SEDUC took action to provide resources to the students who do not have internet access to complete online classes. Through the PPLE framework, ten school networks within the four municipalities received printed school materials from SEDUC and 2,500 books from World Vision. The following section discussing the key advances made this year under Sub-Result 2.1. EDUCATION The Activity donated the last of seven servers to SEDUC, coupled with technical assistance, to improve data collection and analysis. During the second quarter of the year, the seventh and final Network Attached Storage (NAS) server was delivered to SEDUC. A NAS server is a dedicated file storage system, that enables multiple 15 | FY 2020 // ANNUAL REPORT users, in different locations to share and analyze data in a centralized location. Upon delivering the final server, SEDUC assumed total responsibility for the management and use of key tools such as the Local Education Performance Plan (LEPP) and supervision application developed during previous years. This donated equipment valued at , coupled with trainings on its use, improved SEDUC’s data collection, analysis, and management that permits informed decision-making. For example, using LEPP monitoring data, the school network of Gigantes del Saber in the municipality of Santa María worked with the local government to improve school infrastructure, finalizing the refurbishment of a school center in February 2020. The local government invested $25,760 and added another building to the center, allowing more space for 60 students to fit comfortably. The delivery of the equipment and reinforcement of SEDUC skills to use virtual supervision tools was especially timely considering the onset of the pandemic in March 2020, causing the suspension of in-person classes and therefore the SEDUC increased need to use virtual supervision tools. This server system and subsequent trainings on how to use them promoted SEDUC’s self-reliance to lead the analysis of national-level education data to improve local performance. SEDUC led the development and implementation of a national supervision model to monitor virtual classes. Previous technical assistance in the use of digital supervision tools and the Open Data Kit (ODK) platform, positioned SEDUC to take leadership of the Virtual Class Monitoring Strategy, with the coordination of the Inter-Institutional Supervision Roundtable. For seven months, the monitoring of virtual classes was implemented continuously at the national level, with data generated from the 18 Departmental Education Directorates (DDEs). Throughout this process, the Activity provided technical support to promote the institutionalization of educational supervision and the continuous development of data analysis for decision- making. For example, as a result of the data collected using the supervision model, SEDUC decided to extend the school year in favor of children without internet connection, and provide printed educational materials, giving them time and resources to complete classwork. In FY 2020, 311 supervision teams and 2,400 school networks are implementing SEDUC’s virtual supervision strategy, demonstrating substantial buy-in of the supervision tools and commitment to improving the education service. FY 2020 marks SEDUC’s second year of implementing educational supervision with the use of technology, and municipal and departmental directorates are already showing greater autonomy in the use of the systems and methodologies. To support SEDUC’s self-reliance to maintain this virtual supervision, support was provided for a toolbox for the technical team the Unit of the National System of Educational Information of Honduras (USINIEH). The objective of this toolbox is to ensure the sustainability of the virtual supervision model, so that USINIEH has the resources readily available, promoting their self-reliance to continue the process independently. Specifically, the toolbox includes the following resources: a user manual for the installation of ODK software, instructions for LEPP Monitoring, and a manual for using automated systems, written specifically for USINIEH. The empowerment of the education sector at the national level shows that HLG has provided sustainable assistance in the supervision and monitoring process is sustainable. For example, Municipal Education Directorates (DMEs) and school network directors demonstrated their ability to analyze supervision data received from virtual classroom monitoring. For example, based on data analysis, the Innovación Educativa Network of the municipality of Cabañas in La Paz identified the need to increase coverage and integrate parents into educational processes. Based on this, the school network developed “study circles”, which are meetings between family members, students and educators, as well as spaces for teachers to collaborate and exchange best practices to improve family involvement and school performance. This activity began with one school network (Innovación Educativa), benefitting 200 students, but then inspired two more networks (Unidos Por Un Cambio and XIMILATON) to participate. This collaboration between three school networks resulted in involving 60 parents and family members to provide feedback on student’s current realities and guide the development of classes. The extensive use of the ODK platform, which the Activity first introduced to SEDUC, to collect and analyze data nationwide brought the attention of Nafundi, the US based private company that created the ODK. Mr. Yaw Anoka, CEO of Nafundi, contacted SEDUC to ask about featuring their success using the ODK platform in the Honduran education system. Nafundi published a blog post about SEDUC’s experience using the ODK, highlighting that SEDUC was prepared to use the ODK for virtual monitoring of classes due to earlier years of technical assistance provided by the Activity: “This is not the first time SEDUC relied on ODK to measure, analyze, and adapt education management. The Secretariat also uses ODK to monitor the implementation of

16 | FY 2020 // ANNUAL REPORT the Local Education Performance Plan in western Honduras (Proyecto Educativo de Redes- PER) and to implement the national Supervision Strategy.” 3 Social auditing recommendations lead to education improvements for more than 636 students in Santa Rita, Santa Bárbara. In 2018, the Activity began providing technical assistance to CCTs and Municipal Commissioners in western Honduras, to develop a social auditing process and empower civil society to provide recommendations to improve the public services provision (see Result 1.1). Among the recommendations provided by civil society to the municipality of Santa Rita, Santa Bárbara, was the development of an Educational Supervision Plan for the School Network Transformando la Educación, which includes 14 schools and approximately 636 students. With the Activity’s support, this year, Transformando la Educación complied with the recommendation. Technical assistance was provided to develop the supervision plans and to strengthen the network’s organizational and management capacities. For example, the assistance included trainings to the network on technological tools to conduct meetings virtually (such as Google Meets). The Director of the network describes impact of the Activity’s technical assistance, explaining that "Creating and implementing a supervision plan allowed us to increase educational coverage and link parents and teachers in the development of a better service in education, especially now during the pandemic. The technical support provided by HLG, allowed us to grow in knowledge and improve our planning skills”. The following examples highlight improvements as a result of the Educational Supervision Plan:  Increase of students in the network receiving printed materials from SEDUC, from 63% to 94%. Printed materials include worksheets and lesson information related to the current curriculum.  Inclusion of parents in the educational processes through the development of home activities for students to complete with families.  Increased commitment of teachers to strengthen their technological knowledge to provide virtual classes, as they complete and enroll in trainings to learn how to properly use virtual platforms, such as Zoom.  Improved coordination between the school networks, schools and Municipal Education Directorate, as their roles and processes are now defined in the Educational Supervision Plan. Investing the network’s technical and planning skills promotes service improvements, but also institutionalizes Transformando la Educacion’s capabilities and promoting their self-reliance to continue improving the education service. Commitment turns into action – four municipalities leveraged resources to implement public policies for education. Through the PPLE framework, municipal and education authorities with local and international organizations leverage resources and knowledge to meet local needs. In 2019, the Activity supported the approval and began of implementation of PPLE in four municipalities in the department of Copán. During FY 2020, the Activity continued providing integrated technical assistance, supporting the development of public policies, strengthening capacities of the local government and municipal education officials to monitor the policy implementation, and promoting citizen oversight of the execution of commitments. At the conclusion of the year, the four municipalities of Cabañas, Concepción, Copán Ruinas, and San Agustín implemented 80% of their PPLE, leveraging approximately $363,588 in resources from local governments, Non-Governmental Organizations (NGOs) and implementing mechanisms (IMs), such as USAID Honduras Reading Activity (DLAL). The following list highlights the results guided by the PPLE framework, divided by four sectors: Food Security  Family gardens were created for the production of fresh food, benefiting 1,360 students. Additionally, through Merienda Escolar 4, 58 schools received food donations benefiting 4,300 children.

Inclusion and Participation  The Municipal Directorates of Education incorporated 70 presidents of Parents and Family Associations (APF) to participate in the virtual forum, “The importance of community and school participation in the educational process”.

3 Nafundi’s blog post can be found in the following link: https://forum.getodk.org/t/honduran-secretariat-of-education-measures- student-access-to-education-during-covid-19-pandemic/30127 4 Merienda Escolar is a Government of Honduras program that provides students from official pre-basic and basic educational centers with school meals to mitigate malnutrition and encourage school attendance. 17 | FY 2020 // ANNUAL REPORT

Educational quality  100% of the teachers (409) within the ten school networks received training and have completed or are in process of completing trainings from INFOP, International Organization for Migration (IOM), National Autonomous University of Honduras (UNAH) and other NGOs. In addition to contributing to teachers’ professional development, these trainings prepare educators to provide quality virtual education services. Courses cover topics such as using internet and cloud-based systems, teaching, techniques and methodologies for online education, emotional intelligence and cybercrime.  As a product of virtual monitoring, SEDUC determined the need to distribute educational materials to the students who are unable to consistently access the internet. Ten school networks within the four municipalities implementing PPLE have received school materials including 1st to 6 th grade activity booklets from SEDUC and 2,500 books from World Vision.

Municipal Investment and Infrastructure  The Municipality of San Agustín completed the construction of three classrooms, benefitting 28 students in the 9 th grade. In the municipality of Concepción, construction for two new classrooms and a bathroom in the community of Plan Grande began. When completed, this infrastructure project will benefit 85 students in 7 th and 8 th grade.

As demonstrated in the above examples, technical assistance to implement the PPLE framework strengthened synergies between the local government, education sector, community and NGOs. This improved coordination and consensus building between local actors further contributes to the sustainability of education improvements through public policies.

LOCAL GOVERNMENTS Local governments improved their ability to use transparency portals and promote public access of information. Technical assistance was provided to 41municipalities 5 throughout the year to improve their use of the transparency portals, so that citizens have constant access to public information on municipal budgets, procurements, and human resources among others. The Activity’s 40 target municipalities improved their use of the transparency portals. For example, in August 2019 the IAIP reported that only 28 of HLG’s target municipalities uploaded evidence to their portals, while in 2020 all 40 municipalities successfully used their portals (See Annex 5). Municipal capacity to update their transparency portals is especially important in preventing corruption, considering the large amounts of COVID-19 relief funds from the GOH, distributed through local governments. This year August’s IAIP report specifically addressed required information related to COVID-19 emergency fund spending. Even given this new challenge, 82% (33 municipalities) of target municipalities were able to comply with the Transparency Law and correctly uploaded pandemic-related data. The other seven municipalities updated the portal, but still show weaknesses in meeting due dates to update the information. Next year, the Activity will provide targeted technical assistance to help them improve their use of the portals. In addition to the notable improvements, target municipalities stand out in their ability to use the transparency portals, receiving an average score from the IAIP’s April 2020 report of 78%, when the national average was on 62%. Technical assistance strengthened local governments’ commitment and capabilities to provide transparency and access public information. For example, the local government and CCT in Santa María, La Paz collaborated to accurately use their transparency portal. This year the municipality was nationally recognized by the IAIP for receiving a score of 100% on their transparency portal, for the completeness, accuracy, and timeliness of the uploaded information. However, Santa Ana’s commitment and ability to keep the transparency portal updated was not always this strong. In 2016, Santa Ana began using the transparency portal, but it was not updating regularly as the task was not prioritized. Then, Santa Ana participated in a training on transparency and the

5 In June, the municipality of Camasca decided to no longer receive technical assistance, bringing HLG’s target municipalities from 41 to 40. 18 | FY 2020 // ANNUAL REPORT right to public information, launched by the Activity and the IAIP. With this training and subsequent technical assistance, the municipality prioritized the task of updating the transparency portal as an important tool to maintain transparency. The improvement in Santa María’s management of the transparency portal not only demonstrates that the effectiveness of the Activity technical assistance, but also demonstrates that it is sustainable. Santa María was able to apply learned concepts from the Activity’s technical assistance, including the participation of civil society to follow-up on information, to meet 100% of the requirements of the IAIP. Local governments showed self-sufficiency in the development, implementation and adaptation of municipal transparency plans. During the first half of 2020, the Activity provided technical assistance to help 416 municipalities to create and implement municipal transparency plans for the new year. The development of the FY 2020 Transparency Plan was a key opportunity for local governments and citizens to demonstrate their self- reliance as they review progress and lessons learned form 2019 plans and renew their commitment to transparent management. Between the 40 target municipalities, was committed to implement FY 2020 Municipal Transparency Plans. In the example of the municipality of Valladolid, the local government adapted the municipal transparency plan to the reality of the pandemic, demonstrating the importance of this management mechanism. The CCT, Municipal Commissioner and the Public Information Officers (OIPs) in Valladolid, Lempira, built a new municipal transparency plan for September 2020 - September 2021, adapting to the realities of COVID-19. The plan was created through an inclusive and participatory process and included water board representatives, the municipal director of education, and women's network representatives. Due to the requirement of social distancing, the local government published the plan on social networks rather than holding an in-person event to request feedback from the public. For example, one of the new provisions in the plan is the supervision of health centers to ensure correct application of biosafety measures and the compliance of protocols in triage centers. Additionally, the municipality increased the budget for the municipal transparency plan by $1,467.02, 832% FY 2019 budget. Valladolid’s adaptation of their plan and the increased budget shows that the municipality values the municipal transparency plan as an effective and important management mechanism.

Sub Result 2.2: Service Provider’s Capacity to Manage Service Delivery Improved Theory of Change: If providers build their capacity to efficiently and effectively manage service provision, then access and quality of services will increase supporting a better quality of life and more responsive governance. This year, the Activity provided technical assistance improve service management and quality by bolstering their ability to respond to the pandemic and irregular migration. Specifically, HLG trained 86 school networks and 32 municipal directorates to organize biosecurity committees for a safe return to in-person classes, once permitted. SEDUC and the Activity co-created the “Methodology for the Preparation and Management of Targeted Projects focusing on Migration”, training school networks to design targeted projects that encourage community rootedness and socialize the risks of irregular migration, especially in vulnerable populations such as youth from low-income families and returned migrants. To directly improve health providers pandemic response, the Activity donated medical instruments, disinfectant supplies and Personal Protective Equipment (PPE) and office supplies to three hospital in western Honduras, which combined serve approximately 682,482 people. The following section discussing the key advances made this year under Sub-Result 2.2. EDUCATION HLG provided technical assistance to 29 school networks in designing targeted projects to address irregular migration. During this year, SEDUC and the Activity co-created the “Methodology for the Preparation and Management of Targeted Projects focusing on Migration” to promote the creation of policies and projects in education spaces to strengthen rootedness in communities and curb irregular migration. 14 municipalities with high volumes of returned migrants were selected to be trained in this methodology, so that they can use it a tool to address migration at the local level.7 The migration points of contact within each DDE coordinated with education officials to plan the targeted projects. By the end of FY 2020, 29 targeted projects were developed by 29 school networks in 14 municipalities aimed to bolster community rootedness and raise awareness on risks of migration. As an example of municipal commitment to reduce irregular migration, the school network, Unidos por el Éxito in Jesús de Otoro designed a targeted project to produce, process and market surplus

6 This includes the municipality of Camasca, who is no longer one of HLG’s target municipalities since June 2020. 7 According to CENISS data, the selected municipalities are among the highest recipients of returned migrants in western Honduras. 19 | FY 2020 // ANNUAL REPORT agricultural products, improving the diet of 2,330 students from 13 schools. This project addresses irregular migration by strengthening student’s capacities for entrepreneurship while improving basic food access. The implementation of the projects was interrupted by the arrival of COVID-19 in Honduras in March 2020, restricting all in-person events and classes. Despite this, 20 of targeted projects were further socialized to gain buy-in for their implementation from local governments, school networks, and family members of students. For example, 14 projects form Lepaera were discussed with the local government and four projects from San Marcos were presented to Municipal Corporation, requesting funds for implementation. Once implemented, targeted projects will accomplish the following:  Socialize the risks of irregular migration with parents, teachers and students;  Use technological tools to promote entrepreneurship and local economic development;  Promote the use of SEDUC’s Protocol for the Reintegration of Children who are Returned Migrants  Encourage school networks to use data driven decision making when addressing the issue of migration. At SEDUC’s request, seven DDE 8 reviewed and evaluated the utility of the methodology in various contextual settings. SEDUC and HLG incorporated the DDE’s feedback into the methodology. This feedback included adding instructions to upload information on targeted projects to the School Networks Administrative System (SIARED). Additionally, the revision improved the methodology’s description of the evaluation stage, providing more detailed statistical formulas to asses quantitively as well as qualitatively the proposed goals and impact of the activities. In the next year the “Methodology for the Preparation and Management of Targeted Projects focusing on Migration” will be disseminated nationwide as part of SEDUC’s series of documents focusing on migration. Education authorities created and managed biosecurity committees, promoting a safe return to classes. By the close of FY 2020, it remains undefined when in-person schooling in Honduras will recommence. Nevertheless, throughout the year technical assistance continued to strengthen education authorities’ ability to organize and plan for the re-opening of schools. As a member the Roundtable of Cooperators in Education (MERECE), along with DLAL, HLG supported SEDUC in creating a Safe Return to Classes Strategy). This strategy included the requirement the creation of biosecurity committees to oversee biosecurity protocols in education centers. If the committees are not able to successfully organize, ensure the proper safety measures and prepare supplies (such as PPE), SEDUC will not authorize the reopening of those schools. The biosecurity committees consist of family members of students within each school network. To help education authorities address this challenge, 86 school networks and 32 municipal directorates were trained to organize biosecurity committees. This technical assistance included guiding network directors in defining roles and responsibilities of members of the committee and creating a Biosafety Committee Work Plan with the collaboration of education officials, Municipal Directors of Education and Presidents of Biosecurity Committees and directors of school networks. Additionally, PPE was donated to promote the ability of education authorities to safely complete necessary activities, such as the delivering school snacks through Merienda Escolar and distributing printed materials to teachers (See Sub-Result 2.3, Special Report on HLG’s Pandemic Response). MANCOMUNIDADES Mancomunidad Higuito became the first mancomunidad in Honduras to receive international certification for quality management. After one year for technical assistance to strengthen internal management structure and processes, Mancomunidad Higuito was approved for ISO9001:2015 quality management certification by the international certification firm SGS International. Mancomunidad Higuito provides technical services to 13 municipalities in the Copán Department and is a leader in terms of transparency, financial management, administration, and technical support. With this certification, Higuito continues providing quality services in three areas: Internal Management, Technical Processes, and Inter-Institutional Coordination. While Higuito is already a model for other mancomunidades in Honduras, this certification bolsters the organization’s capacity to support municipalities in western Honduras to be more self-reliant and enhances their organizational and financial autonomy.

8 The DDEs who completed this review are from the departments of Cortés, Yoro, Francisco Morazán, Olancho, Choluteca, La Paz and Lempira. 20 | FY 2020 // ANNUAL REPORT

Spotlight 1: HLG supports regional and departmental hospitals to equip specific COVID-19 rooms. While the pandemic spread throughout the year, hospitals continued to prepare designated areas to attend to COVID-19 cases. However, most of them were underequipped and lacked basic PPE for their staff. The Activity provided donations of medical equipment, disinfection supplies, and furniture to equip COVID-19 care rooms in the following hospitals:  Enrique Aguilar Cerrato Hospital in Intibucá This hospital offers coverage to an estimated 265,000 individuals, including a large indigenous population. In this hospital, the Activity equipped the COVID-10 Exhibit 3. Intibucá Hospital staff receiving the donated equipment specific rooms, triage and observation rooms, the that included hospital beds, vital signs monitors, electrocardiographs, pediatric room, the nurses’ station, a dressing room, infusion pumps, among other medical equipment. and the storage room. In addition, the Activity distributed PPE to sanitation personnel who are on the frontline and therefore at high risk of contracting COVID-19.  San Marcos Hospital in Ocotepeque - This hospital serves an estimated population of 165,482 people. The hospital built a new COVID-19 room with resources from Fuerza Honduras program. The Activity equipped the hospital’s new room, delivering equipment such as hospital beds, screens, infusion pumps, vital signs monitors, secretion aspirators, electrocardiograph machines, stethoscopes and other medical equipment. Additionally, HLG provided disinfection supplies and PPE.  Roberto Suazo Cordova Hospital in La Paz – This hospital serves an estimated population of 252,000 people. The Hospital Director made a national request for support, as the hospital was overwhelmed with COVID-19 cases. The Activity equipped a COVID-19 care room, a rest area for medical personnel, and a nurses’ station. The donated equipment included computers, desks, hospital beds, infusion pumps, vital signs monitors, secretion aspirators, electrocardiograph machines, stethoscopes, manometers, and other medical equipment, including disinfection supplies. As part of this donation, the Activity leveraged $1,994 from the private sector by creating an alliance with the Chamber of Commerce to support the hospital. For each hospital, the Activity hosted a live event of the donation delivery and publicized it on Facebook. See Annex 9 for videos of the events related to the donations and Annex 3 for HLG’s COVID-19 redirection proposals. Additionally, the dashboard tracking HLG’s COVID-19 donations can be accessed through this link (See Result 2.3, Special Report on HLG’s Pandemic Response).

Sub Result 2.3 Local Government administrative management capacity increased Theory of Change: If local governments increase their administrative management capacity to identify development sector priorities, increase revenue collection, and make plans and investments accordingly, service delivery will improve . When governments demonstrate improved management capacity, can comply with national audit regulations and preserve talented staff by implementing the CAM Law, they are able to plan an invest in actions to make service improvements in water and sanitation, nutrition, and education. Local governments committed to more transparent human resource practices and exercised their understanding of the CAM Law, as a result from technical assistance. The Activity continued to support the professional development of municipal employees with virtual courses provided through AMHON and registration in the RENTCAM system. Additionally, through a grant with the Activity, AMHON developed the Municipal Biosafety Protocol Manual and the Virtual Biosecurity course, available to all municipal employees and promoting their safety and resilience during the pandemic to continue improving services. The following section discussing the key advances made this year under Sub-Result 2.3.

21 | FY 2020 // ANNUAL REPORT

AMHON strengthened local government’s pandemic response through the Municipal Biosecurity Protocol and the virtual biosecurity course. During this year, the Activity modified an ongoing grant with AMHON to include providing technical assistance to 40 local governments to improve their response to COVID-19. As a result, AMHON created the Municipal Biosecurity Protocol Manual, which will serve as a guide for local governments to develop a safe public management space, through the application of a series of measures to avoid the spread of COVID-19 during day to day activities. The results of the Activity’s grant with AHMON and the creation of the protocol have extended far beyond the Activity’s target municipalities and improved municipal preparedness nationwide. The Secretariat of Labor and National Risk Management System (SINAGER) approved the manual for dissemination to all 298 Honduran municipalities.

HLG through AMHON continued to follow up with target municipalities to ensure Exhibit 4. Municipal Biosecurity their buy-in and promote the protocol’s implementation. For example, to further Protocol. socialize the manual in target municipalities, the Activity held a virtual workshop on September 11 th , to discuss how these measures can be implemented in each municipality. Seven mayors, nine deputy mayors and 21 municipal technicians attended, with participation of USAID, AMHON and the SINAGER. As a direct result of this event, a municipal technician with the Municipal Personnel Unit from Marcala was able to take what he had learned from this event and present the protocol to the municipal corporation, who then agreed to implement the protocol in the municipality. In addition to the Municipal Biosecurity Protocol, the Activity facilitated the coordination between AMHON, SETCAM and USAID Activity Empleando Futuros to launch a virtual course on basic biosecurity practices for mayors and municipal employees in all 298 Honduran municipalities. The course was administered through the SETCAM Virtual Library, which was developed with support from the Activity in 2017. This eight-hour, self- guided course, covers important disinfection and biosecurity practices such as the proper use of masks and gloves, as well as risk management and social distancing standards. To date, 352 municipal employees completed the course, including 216 employees from the Activity’s targeted municipalities. Both of these initiatives originating through AMHON’s grant with the Activity – the Municipal Biosecurity Protocol Manual and the virtual course for municipal employees – will continue to strengthen local governments’ COVID-19 response even beyond HLG’s 40 target municipalities. During FY 2020, the Activity originally planned to take actions to strengthen technical capacities to improve tax management and achieve sustainable increases in revenues and promote self-reliance within local governments. Given the COVID-19 emergency, this intervention was suspended as the activity required in-person technical assistance and it was replaced with the above described grant with AMHON.9 In the coming fiscal year, the Activity will implement interventions to improve local governments’ tax management and revenue generation under Sub-Result 2.3. Spotlight 2: AMHON, in coordination with the Activity, led the Regional Dialogue on the Perspectives of Local Governments facing the impacts of COVID-19. On June 4th, AMHON, in coordination with three USAID IMs, HLG, Nexos Locales (USAID/Guatemala), and Gobernabilidad Municipal (USAID/El Salvador), held the event “the Regional Dialogue on the Perspectives of Local Governments Facing the Impacts of COVID-19”. The Regional Dialogue Event served as a platform for authorities to exchange experiences between countries, highlighting best practices and lessons learned. The virtual event brought together six mayors from Guatemala, Honduras and El Salvador to share best practices and analyze challenges in two panels: “Best practices in sanitation to control the spread of COVID-19” and “Considerations for economic reactivation in the short term”. In addition to over 300 people who participated in the live event, the recording of the event continued to have a great impact on social media, reaching more than 38,000 people. Local governments committed to transparent and compliant human resources management through the continued implementation of the CAM law. Throughout FY 2020, Activity continued to provide technical assistance to both SETCAM and municipal technicians to promote their institutional capacity in municipal and human resource management processes. As a result of the Activity’s assistance, by the end of this year, 323 municipal technicians were registered in RENTCAM. Despite the challenges presented by the pandemic, SETCAM continues to strengthen the capacities of the Municipal Personnel Administration Unit (UMAP)

9 FY 2020 Workplan was modified accordingly and approved by USAID on June 15, 2020. 22 | FY 2020 // ANNUAL REPORT technicians through virtual training and teleworking for the formulation of training and human resource management plans. Through a grant with the Activity, AMHON continued to implement a grant to strengthen SETCAM and municipal employees’ professional development, providing online training to hone their technical skill. The below table outlines the trainings led by AMHON for SETCAM employees, where 39 of the Activity’s target municipality participated in at least one training. 10 These trainings complement the Activity’s technical assistance provided to SETCAM and further cement their self-sufficiency to complete processes to improve management and transparency on their own. For example, the virtual course on the registration of technicians in RENTCAM (see Exhibit 5), had an impact on the municipality of Santa Maria, who now leads the process independently, organizing the files of the municipal technician to be registered in RENTCAM and works directly with SETCAM. Additionally, local governments exercised their improved understanding of the CAM Law and how to implement it. For example, the local government of San Vicente Centenario in Santa Bárbara with the local monitoring commission, assessed roles and positions in the municipality to determine if they were adequately staffed. The local commission identified six key positions11 that were currently filled by temporary staff but needed long-term employees. In accordance with the CAM Law, the local government notified SETCAM. The San Vincente Centenario UMAP led the process of recruitment and selection of candidates, with civil society supervision from the local monitoring commission. At the end of this process, the six positions were filled, four municipal technicians were registered in the RENTCAM and two more are in the process of registering. Mayra Ramos, Deputy Mayor and coordinator of the UMAP in San Vincente Centenario, describes her gratitude for HLG’s assistance: “We are very grateful for the accompaniment of HLG, we had a very good response from civil society. We all feel capable now to carry out this type of process.” The successful completion of this process reflects San Vincente Centenario’s municipal commitment to manage human resources in a transparent and inclusive manner and to provide quality services to the population in western Honduras. Exhibit 5. Trainings developed by AMHON for SETCAM and municipal employees. Local Title of Training Participants Governments Certificates in the municipal level public procurement training 46 26 Virtual recruitment and selection course 42 25 Course on basic biosafety practices 216 32 Virtual course on the technician’s registration process in RENTCAM 27 22 Municipal Biosafety Protocol 37 33 Use of the SETCAM platform and human resources system 35 26 Recommendations on good practices in the framework of the COVID -19 health 29 22 emergency given by the National Council of Anti -Corruption Ethics of the Public Servant and Customer Service 41 3

Spotlight 3: HLG equipped local triage centers, strengthening decentralized health providers’ capacity to detect and care for COVID-19 cases locally. On June 29 th , the Government of Honduras, through SINAGER, requested local governments to strengthen triage centers to lessen the demand for care in hospitals. This national mandate required that local governments identify and use decentralized funds to equip triage facilities. The Activity conducted an assessment to identify if and how the mayors and decentralized health providers were prepared to respond to this mandate. The result of the assessment showed that very few mayors and decentralized health providers had undertaken actions to equip triage facilities or were prepared to act. Municipalities found it difficult to identify resources to allocate to the local triage centers, due to delays in the municipalities’ monthly funds transferred from the central government and since they were unable to collect taxes locally due economic downturn caused by COVID-19. The conclusion of the assessment was that not all decentralized health providers had the same capacity to respond to increased demand at triage centers, nor do all the mayors have the same level of commitment to provide support and resources to the triage centers. To select municipalities to receive in-kind donations, a

10 Corquín was the only one of the Activity’s target municipalities that did not participate in any of the trainings. 11 Each of these roles were identified by the CAM law to be legally appointed as they perform key services for the municipality. 23 | FY 2020 // ANNUAL REPORT

“capacity – commitment” index was created that was applied to targeted municipalities to ensure that the selected municipalities where both capacity and commitment were present within both the decentralized health providers and the local governments. Based on the results of the analysis, the Activity chose to support three triage centers in the following municipalities: 1) San Marcos, Ocotepeque, 2) Macuelizo, Santa Bárbara and 3) the joint triage of Copán Ruinas and Cabañas, Copán. 1. San Marcos, Ocotepeque: This municipality uses mobile triages, where medical teams carry out home visits in the communities in search of positive cases and follow up on positive cases. The Activity supported the municipality in strengthening the mobile brigades by providing PPE that included safety suits, medical gowns, surgical masks, adjustable masks and boot covers, digital thermometers, and oximeters. The donation serves an estimated population of 22,598 people in the municipality. 2. Macuelizo, Santa Bárbara: To support the proper functioning of the triage center, the Activity provided PPE and medical equipment to the Decentralized Health Manager (the municipality of Macuelizo), in order to set up the primary evaluation area for patients. The equipment was also used for the medical brigades that are carried out throughout the municipality. The donation is benefitting a population of 38,000 people. 3. Cabañas/Copán Ruinas, Copán: The municipalities of Copán Ruinas and Cabañas, located in the department of Copán, collaborated to create one triage center and one stabilization center for COVID-19 patients, to serve an estimated population of 59,296 people from both municipalities. HLG provided PPE to ensure the safe operations of these centers and support the mobile medical brigades. Concurrently with the municipalities, decentralized health providers play a crucial role in detecting early signs of COVID-19. Support for these local health providers and municipalities to improve triage centers strengthened the first line of defense against the pandemic and bolstered efforts to conduct community-focused activities to change social behavior, such as hand washing and the use of masks. Resources allocated by the Government of Honduras were not sufficient to cover all the related expenses, support complemented Fuerza Honduras funds to enhance local triage centers. The Activity determined additional triage centers in need of support which will be provided in the upcoming fiscal year. The dashboard tracking HLG’s COVID-19 donations can be accessed through this link (See Result 2.3, Special Report on HLG’s Pandemic Response).See Annex 9 for videos about the Activity’s assistance to the triage centers and Annex 3 for all COVID-19 redirection proposals, Phase I through VI.

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SPECIAL REPORT: HLG’S PANDEMIC RESPONSE HLG improves COVID-19 prevention, detection, and care for the people of western Honduras. The first case of COVID-19 in Honduras was diagnosed on March 10. The country entered a state of total quarantine by March 16. By the end of March, the United States Government (USG) authorized voluntary departure for expatriates that wanted to leave the country due to health concerns. At the same time, the Activity set in place a teleworking plan to guide and support the staff while they adapted to the new way of doing business. The nationwide quarantine was extended through June 29, when a gradual opening of the economy began in some selected locations. However, the reopening only applied to municipalities where cases were not increasing at a dramatic rate. Although each municipality is now in a different phase of re-opening, by the end of the fiscal year, all had begun the re-opening process. Additionally, while airports are operating, and businesses are gradually reopening, movement restrictions remain, as some parts of the country are still experiencing an increase in cases.

According to official data from the SINAGER, Honduras reported 76,900 positive cases of COVID-19, and 2,353 deaths as of September 30, 2020. In western Honduras, where the Activity operates, there were 7,150 positive cases and 220 deaths as of the same date, making up 9% of the national totals. While the COVID-19 cases in western Honduras may seem minor in comparison with the rest of the country, the areas in which the Activity works suffer from weak public health systems and high levels of poverty and rurality, presenting complex challenges in addressing the pandemic.

At the onset of the pandemic, the Activity realized that it was essential to continue supporting local governments, service providers, and civil society organizations, as they still needed to perform their duties and responsibilities given their major role in the pandemic response. The Activity performed a thorough review of the budget to identify savings and/or areas that due to the nationwide lockdown, would produce savings that could be reprogrammed to support the pandemic response. By the end of March 2020, the Activity had prepared a comprehensive plan to mobilize resources in response to the pandemic. USAID/Honduras approved this plan, which included redirecting to support the pandemic response. Once USAID/Honduras approved the redirection of funds, the Activity, in close collaboration with local stakeholders and partners, and in line with the GOH programs in charge of responding to the emergency such as the Bolsa Solidaria and the Fuerza Honduras programs, developed and presented a total of five proposals (phases) to USAID for the use of the approved redirected funds. The USAID/Honduras mission praised the Activity for its rapid response and proactive proposal to address the pandemic.

To better respond to the emergency and ensure the phases were designed to support the most urgent needs, the Activity leveraged its broad geographic coverage and relationships with decentralized health providers, local governments, CCTs, and other local service providers to support GOH response to the COVID-19 emergency by consulting them from day one on their needs and concerns. The Activity also realized that shelters for victims of Gender Based Violence (GVB) and child violence, as well as residences for senior citizens, were facing difficulties in procuring sanitation supplies, and, in line with the Activity’s Gender Strategy, included these populations as beneficiaries of the COVID-19 activities. Based on the above-mentioned consultations and assessments, the Activity’s COVID-19 response was designed three-fold: 1) prevent the spread of COVID-19, 2) detect cases of COVID-19, and 3) care for infected patients. The Activity equipped decentralized health providers, hospitals, and triage centers with basic sanitation supplies, PPE, and key initial diagnostic tools. These tools were used to detect early signs of COVID-19 at the local level and to refer potential cases to larger or more specialized hospitals, while also providing local governments, citizens, and education authorities with PPE and supplies to prevent the spread of the virus. Throughout the year, the Activity’s COVID-19 response strategy evolved and adapted as the pandemic continued and the needs of decentralized health providers and hospitals were further identified.

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While searching for required goods and products, the Activity quickly realized that the local market was capricious, and some products were scarce due to high demand. To ensure the best use of USAID resources in a timely manner, the Activity issued a series of Blanket Purchase Agreements (BPA) to ensure availability, quality, and price in the acquisition of the products. For example, several thermometers and other minor medical equipment where out of stock in Honduras, but the Activity was able to procure them quickly and deliver to the field, thanks to the BPAs. While prices were escalating nationwide, BPAs also permitted the Activity to continue procuring sanitation supplies at the best price, which led to cost savings. To ensure transparency and accountability in the delivery and use of donated goods, the Activity developed an Information Technology (IT) Tool in the ODK12 and added a Quick Response Code (QR code)13, that permitted real time information gathering on the delivery of donated goods and ensured that they were provided to those in most need. The ODK data collection tool also included a live dashboard that showed the donor evidence of delivery, including pictures and disposition of property. Information on this tool can be found at the following link: https://www.glhonduras.org/tableros-digitales/ Due the complexity of travel and transportation in the COVID-19 environment, the Activity decided to conduct most of the deliveries of goods and equipment using their two regional offices as warehouses and distribution centers. For the instances where beneficiaries had difficulties accessing the regional offices, the Activity deployed staff to specific municipalities, health centers, hospitals, and shelters. To avoid spreading the virus and guarantee the safety of both the Activity staff and beneficiaries, the Activity developed a comprehensive and straightforward biosecurity protocol that included measures such as the use of PPE for staff, social distancing, and obligatory use of masks and PPE for beneficiaries. Besides the delivery of equipment, the Activity also reviewed its current grants under contract (GUC) to ensure the best use of resources and safety of grantee beneficiaries. The grant with AMHON was modified to respond to the municipalities’ needs during the pandemic, which included Exhibit 6. HLG biosecurity protocol for providing a virtual training to municipal employees on bio-security good´s delivery. measures, delivering sanitation supplies to targeted municipalities, and developing a bio-security protocol that was adopted nationwide for all municipalities (see Sub-Result 2.3). USAID’s Mission Director participated, along with the AMHON’s President in its launch. Of the total committed and approved allocation by USAID under the redirection of funds, the Activity expended as of September 30, 2020, benefiting a total of 1,519,832 individuals in western Honduras, including those who are outside of the Activity’s target municipalities. By providing support to decentralized health providers and hospitals, the Activity also benefit a total of 2,892 health/medical employees and 215 primary health attention centers in rural and isolated communities. Due to the delays in the construction of a hospital in one of the Phases, cost-savings from efficient purchasing mechanisms such as the BPAs, and great procurement management, by the end of the fiscal year the Activity had a total of remaining. the Activity will use these funds for Phase VI of COVID-19 response. This final phase will focus on equipping eight triage centers in western Honduras and be completed by November 2020.

12 ODK is open-source software for collecting, managing, and using data in resource-constrained environments. It allows for offline data collection with mobile devices in remote areas. The submission of the data to a server can be performed, when Internet connectivity is available. It allows communities to aggregate data with full control over the collected data and the servers where this data is stored. ODK can be applied, when a community wants to collect data with full control over the collected data. Collected data can be stored offline on the mobile device. The collection and aggregation of data from the devices can be performed with Open Source tools according to privacy concerns of the community.

13 QR is a barcode is a machine-readable optical label that contains information about the item to which it is attached. In practice, QR codes often contain data for a locator, identifier, or tracker that points to a website or application. 26 | FY 2020 // ANNUAL REPORT

Local Government Management to Reduce Migration and Promote Local Economic Development During FY 2020, the Activity continued to bolster local governments capacity to reduce irregular migration and promote local economic development. Building off lessons learned from the migration case study in FY 2019, the Activity expanded LED support from four municipalities to fourteen. The municipalities selected are among the highest recipients of returned migrants in western Honduras, but also demonstrated the highest capacity to implement impactful and sustainable initiatives. 14 Specifically, support was provided for the development of LED structure and management mechanisms such as LED Agendas, while sensitizing government and private sector actors on the causes and challenges related to migration. Exhibit 10 below summarizes advances, as well as multi-stakeholder participation in the approval and implementation of LED Agendas and LED processes in the fourteen municipalities. Five LED agendas approved, providing vital support to promote economic development and the reactivate local economies during the pandemic. A key finding from the migration case study completed in FY 2019 demonstrated that when local governments have established LED structures (roundtable, LED commission, municipal LED Unit, and LED Agenda), and can coordinate and leverage resources with local, national, and international actors, then local solutions emerge quickly. During FY 2020, technical assistance was either initiated or intensified with 14 local governments to strengthen or create LED structures that can then implement initiatives like those mentioned. The Activity supported local governments with technical assistance to establish and strengthen local economic development structures in each municipality while sensitizing government and private sector actors on the causes and challenges related to migration. This year, as a result of technical assistance provided by the Activity, five municipalities (San Marcos, Azacualpa, La Labor, Cabañas and Lepaera) approved their LED Agendas through a participatory process between the local government, private sector, and civil society organizations. The agendas seek to promote inclusive investment in the sectors of coffee, tourism, commerce and services, agricultural and livestock, among others. The approval of these LED agendas is timely considering the current pandemic, as they will be used as an essential LED tool to reactivate the economy and create rootedness to curb irregular migration. Since January 2020, HLG accompanied local governments in the formation of their LED commissions, providing guidance on identifying the economic potential of each territory, and trained the technical teams in formulating the agendas. Now with the agendas approved in five municipalities, LED commissions have already identified next steps in implementing the agendas. For example, Lepaera, Lempira proposed in its agenda to promote tourism projects, and by the end of FY 2020 the municipality already began planning the formation of a Chamber of Tourism. Similarly, La Labor, Ocotepeque included a provision in their plan to promote agriculture and is already discussing the opening of local fairs where producers commercialize their products. The approval of these agendas and the readiness of the municipalities to implement them shows that, in building capacities in local actors, HLG strengthens municipalities’ ability to take concrete actions for the development of the municipalities. Municipalities promoted LED initiatives to provide economic opportunity and disincentivize migration, such as providing trainings for youth and subsidies for the agriculture sector. Local governments faced significant challenges to implementing LED initiatives and approving LED agendas during the latter half of 2020 due to the pandemic. While positive cases of COVID-19 in Honduras continued to rise, mayors and municipal units focused their attention on immediate pandemic response, and not necessarily prioritizing LED efforts. However, the Activity provided technical assistance to municipalities on how LED efforts can be an integrated part of a pandemic response strategy and help to re-activate the local economy. The list that follows, provides examples of local governments implementing LED initiatives throughout the year, stemming from LED agendas and active municipal LED structures. See Annex 12 for information on LED actions in each of the 14 municipalities. 1. Training in Lenca Textiles, Gracias: The approved LED agenda defines actions for Gracias to take to improve economic opportunities for vulnerable youth whom are at risk of migrating. The National Commission for the Development of Alternative Education (CONEANFO), the Central American

14 According to CENISS data, the selected municipalities are among the highest recipients of returned migrants in western Honduras. They demonstrate the highest capacity to implement LED initiatives, according to the Service Management Index. 27 | FY 2020 // ANNUAL REPORT

Technical University (UNITEC), and the local government of Gracias, led a training for 17 young women on how to design and create Lenca-inspired clothing to start their own entrepreneurship efforts. The participants come from vulnerable situations that increase their risk of migrating: Eighty percent of participants have family living in the United States, over half (9) expressed intentions to migrate and two are returned migrants. The Activity invested and leveraged an additional $12,654.35 from CONEANFO, the Gracias local government, World Vision and the Municipal Unit of Attention to Returned Migrants (UMAR). To further promote the sustainability of this initiative, the regional employment committee of Gracias will stay in contact with the participants and include them in the local economic development processes to curb irregular migration in the municipality.

2. Workshop on packaging locally produced products, Macuelizo: The local government Macuelizo, in coordination with the Activity, carried out a workshop for 41 youth on packaging sausages and banana, cassava and malanga chips. Macuelizo is a municipality located in the southern side of the department of Santa Bárbara and is part of the country's immigration corridor. Its economic activity is based on agricultural production, including basic grains (beans, rice, corn and coffee), livestock, and trade. The Macuelizo local government, through consensus with civil society and the productive sectors, identified within the LED agenda importance of locally produced products on the municipality’s economy. At the same time, the local government recognized the need to increase economic opportunities for youth at risk of migrating. The training was directed to young people between 16 to 29 years old, with a focus on returned migrants and other vulnerable youth. Of the 41 young people who participants in the workshop, seven were returned migrants and 83% were female.15 The local government’s LED Unit and Municipal Women’s Office led coordination efforts surrounding the training, thereby demonstrating its commitment to increase economic opportunities locally for youth at risk of migrating.

3. Subsidies for agricultural producers, Marcala: The LED Unit in Marcala led initiatives to support the agriculture sector, specifically, by managing and distributing subsidies to more than 200 agriculture producers. Since 2019, HLG provided technical assistance to the LED Office of Marcala, La Paz to strengthen its capacity to mobilize municipal resources and improve the organization of the municipal productive sectors. The LED Office received training on how to lead a strategic proposal for funding and identify specific needs in the municipality. Applying lessons learned from these trainings, the LED Office submitted a proposal to the Secretariat of Agriculture and Livestock requesting the subsidies for the corn production sector in Marcala. The LED Office was able to demonstrate their capacity to effectively use skills installed by the Activity’s technical assistance to advocate for the needs of the municipality. As a result, the LED Office mobilized approximately $ 4,000.00 in subsidies and guaranteed basic supplies to 200 corn producers, bolstering the agricultural sector and improving the livelihoods of the farmers who can sell surplus production to generate income for their families. Three youth entrepreneurship funds, contributing to economic reactivation and community rootedness to curb irregular migration. As part of a multi- stakeholder collaboration to the Activity supported three youth A total of $104,054 is entrepreneurship funds to provide economic opportunity to youth ages 16 and committed between HLG, 29, who are either returnees, have the intention of migrating or youth that are local governments, the in a vulnerable situation. While the entrepreneurship fund in Copan Ruinas was private sector and non- finalized in the first half of the year, both enrollment and implementation of the governmental organizations. funds in Corquín and Intibucá was carried out virtually and will be finalized with As a result of this multi- the delivery of in-kind contributions to the winners during the first quarter of sectoral engagement, 80 FY 2021. The young entrepreneurs who participated in the funds are creating vulnerable youth were new businesses in western Honduras including a bakery, vegetable enterprise, selected to receive welding workshop, a coffee shop, bookstore, production and investment to start their own commercialization of chicken eggs, sale of pork rinds and a mini market. Not business proposals. only do these economic opportunities contribute to the reactivation of the national economy, but also promote rootedness in vulnerable youth, helping to curb irregular migration.

15 34 women and seven men participated in the workshops. 28 | FY 2020 // ANNUAL REPORT

 Copán Ruinas: 42 young entrepreneurs received seed funding through the Copán Ruinas Entrepreneurship Fund, with over half (52%) being women. The winning projects were selected by a jury, out of 150 applicants. Seed funding awarded ranges from to and were delivered in cash or through in-kind donations. The winners are youth in situations of extreme vulnerability, many having expressed the intention to migrate irregularly. Specifically, two winners are migrant returnees and entrepreneurship fund impacted their decisions to remain in Honduras.  Corquín, Copan: 17 youth were selected to receive capital to start their business, 65% (11) of which were women. Ten business proposals were supported financially by the Activity with an investment of and the other seven are supported financially by the local government with an investment of and CESAL16 with a contribution of . The total amount leveraged was . Examples of the winning business proposals include handmade wooden furniture business and a bakery. The winning entrepreneurs will receive their seed funding to start their own business in the first quarter of FY 2021.  Intibucá, Intibucá: Five business proposals involving 21 Exhibit 7. An egg production business was young entrepreneurs17 were selected to receive in-kind developed by seven young entrepreneurs in the village of Panina. contributions. The Activity supported by investing , the local government contributed $ 1,986.00 and Center for Entrepreneurial Management (CDE) contributed $ 8,126.77. The total amount leveraged among the three actors was . The winning entrepreneurs will receive their in-kind contributions to start their own business, in the first quarter of FY 2021. Local actors, including CDE and the municipalities’ LED Units will follow up with winners of each of the entrepreneurship funds, to see their progress in establishing their own businesses. Due to the pandemic, this follow up was delayed until the upcoming fiscal year. In this way, municipal LED Units demonstrate their self-reliance and commitment to independently continue promoting vulnerable youth and local economic growth.

Exhibit 8. Economic contribution for entrepreneurship funds was leveraged between local governments, private sector, academic intuitions, NGOs as well as other international and local actors.

16 CESAL is a NGO working with disadvantage populations to promote employment opportunities and rural development. 17 Out of the 21 entrepreneurs awarded, this included 7 women and 14 men. 29 | FY 2020 // ANNUAL REPORT

Coordination with USAID IMs, IPs and Other Donors For a majority of FY 2020, coordination efforts with other USAID IMs, Implementing Partners (IPs) and donors were centered on supporting local governance pandemic response and continued service provision despite the emergency. For example, in coordination with three USAID IMs, Honduras Local Governance Activity, Nexos Locales (USAID/Guatemala), and Gobernabilidad Municipal (USAID/El Salvador), held the event “Regional Dialogue on the Perspectives of Local Governments Facing the Impacts of COVID-19”. The Activity worked to further develop synergies with non-USAID donors including World Vision, CRS, GIZ, and EUROSAN, to leverage resources and coordinate activities related to LED and education. Exhibit 9 provides information on HLG’s coordination efforts throughout the year.

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Exhibit 9. HLG coordination efforts with USAID IMs, IPs, NGOs and other donors.

Sector IM/IP/Do Coordination/Leverage Next Steps for FY 202 1 Impact nor Education USAID ● DLAL donated 25 tablets each to five DDEs ● Coordinate development of target ● DLAL works closely with school networks and De Lectores overlapping with the Activity (Lempira, projects on Migration teachers to improve teaching quality inside the a Lideres Ocotepeque, Copán, Santa Barbara, and La Paz). ● Support implementation of classroom. By coordinating with this IM, the These tablets were pre-programmed with the supervision model in school Activity has not only leveraged resources, but LEPP and supervision ODK apps and will facilitate networks ensured that HLG’s technical assistance to the DDE’s ability to conduct field monitoring. improve education management complements ● DLAL shared a draft supervision bylaw that would DLAL’s efforts inside the classroom. be adopted by school networks with the Supervision Roundtable (led by SEDUC).

USAID ● Support ed AcL book distribution. ● As needed and feasible, support ● Coordination with AcL has allowed AcL to Avanzando ● Secured space for Ac at a regional meeting of distribution of FY 2021 teaching leverage the Activity’s geographic coverage and con Libros Department Directors during the quarter so that materials. contacts at the local level to support book AcL could discuss their strategy and garner DDE distribution. support. ● Shared LEPP data on teacher performance and availability of teaching materials . CRS & GIZ ● Participation in National Supervision Task Force ● Continue participation in the ● With GIZ and CRS, the A ctivity is leveraging to develop and implement a strategy for rolling National Supervision Task Force. technical assistance and financial resources. GIZ out the new supervision model nation-wide will be able to finance supervision trainings in ● CRS and GIZ will help expand the supervision the upcoming year and both partners will allow model and digital tool beyond western Honduras. the geographic expansion of the supervision model . Local USAID ● Coordinated with two implementing mechanisms ● As needed and feasible, continue ● Each IM leveraged their connections with local Governments Nexos to hold Regional dialogue on the perspectives of promote the sharing of best mayors in Guatemala, Honduras and El Salvador Locales local governments facing the impact of COVID- practices between mayors. to bring together six mayors to share ideas and (Guatemala) 19. best practices. 300 people participated in the and live virtual event and the recording of the event Gobernabili continues to have a great impact on social dad media, reaching over 38,000 people. Municipal (El Salvador) USAID ● Participated in coordination meetings with ● Continue technical assistance for the ● TMS finalized the process simplification Transformin AMHON and TMS to further develop the process implementation of San Marcos’ LED assistance to San Marcos, Ocotepeque and g Market simplification activity in San Marcos, Ocotepeque. Agenda. shared results with the Activity. These Systems TMS overlaps with the Activity in five improvements will strengthen the municipalities: Gracias, Copan Ruinas, Marcala, municipality’s capacity to implement the LED Intibucá, and Lepaera. Agenda by facilitating the creation or ● Shared LED agendas and contacts for each expansion of existing businesses and building municipality to support TMS’ efforts. trust and confidence between public and

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private sectors by establishing clear expectations.

Empleando ● Coordinated with Empleando Futuros, AMHON, ● Continue promotion of the course. ● The virtual course is available to all municipal Futuros SETCAM to launch a virtual course on basic employees in 298 Honduran municipalities and biosecurity practices for mayors and municipal covers important disinfection and biosecurity employees in all 298 Honduras municipalities. practices such as the proper use of marks and social distancing.

World ● Entrepreneurship fund in Corquín, Copan to ● Continue coordination efforts to ● The Activity has leveraged resources of a non - Vision reduce irregular migration. improve governance for reduced USAID donor to complement efforts in several ● Developed training for youth on garment-making migration. municipalities. This has been fundamental to with Lenca textiles. achieving impact when the Activity was operating with reduced resources.

EUROSAN ● Entrepreneurship fund in Copán Ruinas and San ● Continue coordination efforts to ● Same as above. Marcos Ocotepeque to reduce irregular improve governance for reduced migration migration. Water and HELVETAS ● Coordinated with HELVETAS to help the CCT ● Continue coordinated as needed ● CCT of Trinidad is now connected with water Sanitation of Trinidad to implement recommendations and feasible, to help the specialists to help them implement social audit from a social audit during the first quarter of the implementation of recommendation and improve service year. recommendations from social provision. audits. Youth CRS ● Through a grant, coordinate the implementation ● Finalize the grant that implemented ● The JC model was rapidly initiated through of the Municipal Program for the Prevention of Jovenes Constructores. partnership with CRS allowing HLG to scale up Youth Migration its internship program to reach more at-risk youth. If new resources and a new methodology was developed, it would have cost more time and resources.

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Crosscutting Themes INFORMATION COMMUNICATION TECHNOLOGY Especially considering the current pandemic, ICT tools enhanced the Activity’s technical assistance strategy during FY 2020 in many sectors. Given that in-person technical assistance, meetings and trainings were restricted since the beginning of the pandemic, the ability for and its stakeholders to successfully use digital tools was critical this year. From the virtual supervision tools to monitor classes during the pandemic to dashboard tracking and publicizing real-time information on donation deliveries, there were numerous ongoing efforts that involve ICT throughout the year. ICT Initiative St atus 1. SEDUC and Unit of the National System SEDUC and USINEH continue to use the virtual supervision model, using the of Educational Information of Honduras platform first introduced through technical Assistance provided by the (USINEH) develop a strategy for Activity. monitoring virtual classrooms, using the open source ODK application. 2. USINEH and SEDUC assume full At the beginning of FY 2020, the Activity issued a final series of training to responsibility for servers and USINIEH on the use of six servers, installed by HLG, to improve data technology. management. This training proved critical for the development of the virtual monitoring strategy. 3. HLG used electronic monitoring tools The form uses a QR code to identify and track donations i n real time using a to track the delivery of sanitation and Dashboard, which is publicly posted to the Activity’s website to ensure medical supplies to different actors in transparency. The public dashboard received 134 views and was used by western Honduras (See Sub-Result 2.3, beneficiaries as well as HLG staff. Special Report on HLG’s Pandemic Response).

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GENDER AND INCLUSION During FY 2020, the Activity implemented the Jovenes Constructores, ¡Aquí me quedo! program under a grant to Catholic Relief Services (CRS) and the Network of Community Technical Institutes (Red ITC). The program targeted vulnerable youth in the municipalities of San Francisco del Valle, La Labor, San Marcos, Ocotepeque and Macuelizo, Azacualpa, San Marcos, Santa Bárbara with life skills and technical training to increase employment, entrepreneurship and/or educational opportunities. Throughout the year, grantees, RED ITC and CRS, carried out internationally certified training activities that strengthen individuals soft and hard skills, with the goal of creating rootedness in their communities and preventing irregular migration. As part of the enhancement to their soft skills, youth were facilitated through discussions on gender equality, discrimination and gender-based violence.

The Jóvenes Constructores: ¡Aquí me quedo! program exceeded enrollment goal and initial results show it successfully promoted rootedness in youth. Despite the challenges due to COVID-19 during FY 2020, the Jóvenes Constructores: ¡Aquí me quedo! program Gender Total Youth Total Y outh was able to pivot to virtual platforms to Enr olled Graduated successfully enroll youth and implement the Female 84 69 methodology. The first cohort, Jóvenes Male 127 89 Constructores, is a six to eight-month program TOTAL 211 158 with the goal of offering three potential solutions to 180 youth in six municipalities who Exhibit 1 0. Number of youth graduated and enrolled, from the are at-risk of migrating: obtain a job, return to Jóvenes Constructores: ¡Aquí me quedo! program divided by gender. the educational system, or launch an Despite the challenges presented by COVID-19, 75% of youth wh o enrolled successfully completed the program and graduated. entrepreneurship endeavor. The second cohort was implemented under the methodology, Grupos de Auto Ahorro y Prestamo (GAAP). GAAP methodology is for youth graduating with a high school degree in agricultural administration and seek funding for local businesses as a way to reduce irregular migration. The 22-hour program strengthens youth’s capabilities in financial management, giving them skills and knowledge to understand loans, investments, savings as well as maintaining financial records and sustainable investments, promoting transparency and accountability. Between the two cohorts of “Jóvenes Constructores: ¡Aquí me quedo!” program, a total of 211 youth enrolled, which is 117% of the original goal of enrolling 180 youth. Initial results of the program demonstrate its success in strengthening youth’s hard and soft skills to provide economic opportunities and disincentivize irregular migration. Of the youth who enrolled, 75% (158) graduated and 29% (41) of graduates were able to obtain at least one of the favorable outcomes promoted by the program; 18 youth returned to the educational system, 14 launched an entrepreneurship endeavor and nine individuals took both of those actions. This result is especially notable considering the challenges of keeping youth engaged in the virtual format, and youth finding employment, entrepreneurship or education opportunities even amidst the current crisis. The program successfully reached the target vulnerable population of youth at risk of migrating. Through the both cohorts of the program, technical assistance was provided to 13 young returned migrants. From the initial entry survey, 32 youth stated their intention to migrate, and at the end of the program, only 15 expressed their intent to migrate, a reduction of 46%. The program video includes testimonies from participants, highlighting not only the impact of the program on their vocational skills, but also how it encouraged them to stay in Honduras rather than emigrating. Published on Facebook by Exhibit 1 1. Jóvenes Constructores: ¡Aquí me quedo! USAID, this video received 1,706 views and was shared 31 times. Program video. The Jóvenes Constructores: ¡Aquí me quedo! Program video can be accessed through the following link: https://www.youtube.com/watch?v=fpM2ZJ3ERW0&feature=youtu.be . Jovenes Constructores sensitized youth to issues of gender equality and discrimination. In addition to developing their hard skills, Jovenes Constructores methodology instilled soft skills and life values in youth, one of them being

34 | FY 2020 // ANNUAL REPORT how to respect oneself and others. Facilitators guided the participants through discussions on the topic of gender, including gender equality, discrimination, Lesbian, Gay, Bisexual, Transgender and Intersex (LGBTI) rights, and gender-based violence awareness and prevention. Youth learned how to have a respectful dialogue on these topics together, and how to share and learn from each other’s experiences. Gender equality and respect were values promoted repeatedly throughout the program, so that youth not only absorb the information but also learn how to apply it in their own lives. Of the 84 young women who participated in Jovenes Constructores , 82% (69 youth) graduated. By the end of the program, 23 young women achieved at least one of the promoted solutions: five returned to the education system, 11 started their own entrepreneurships (either alone, or in a group) and seven were able to complete both actions.

Spotlight 4: Jóvenes Constructores: ¡Aquí me quedo! program, leveraged investment from the private and public sector to provide opportunities to vulnerable youth. The following examples highlight how this inclusive collaboration provided youth with opportunities and resources to gain employment, start their own businesses, and reintegrate into the educational system. For more information on private sector engagement, see Annex 13.  The agro-energy company, SER- Chumbagua offered 20 scholarships, valued $4,900, to reintegrate program graduates into the education system.  The local government of Azacualpa donated approximately $700 in supplies for 11 young entrepreneurship to begin a vegetable enterprise in Laguna Verde.  The Red-ITC signed a grant agreement with the Lutheran World Relief for $172,392 to continue supporting the new graduates and also those who could not finish due to an internet access.

Collaborating, Learning and Adapting (CLA) Agenda Due to the pandemic and nationwide quarantine, several activities in the approved FY 2020 Work Plan were paused or modified. In the new reality, all implementing partners are faced new challenges in implementing activities, collecting data, and tracking goals and indicators. This required creativity in adapting monitoring and evaluation systems to match both the new reality and the programmatic changes included in the modified FY 2020 Work Plan. A pause and reflect meeting was carried out with regional office managers in order to identify the impact of COVID-19, as well as how to continue reaching annual goals and collecting evidence according to source data as established in the Monitoring, Evaluation and Learning Plan (MELP). Exhibit 12 presents a collection of the most relevant challenges found this year, along with respective actions that were taken or have been proposed to adapt. Exhibit 12. Challenges and adaptations during FY 2020. Learning Adaptation

HLG quickly adapted to coordinating as a team through virtual Due to COVID-19, all HLG offices were means. The team learned and developed a process to provide and closed and in-person activities were register virtual technical assistance to local stakeholders (see Exhibit restricted. 13).

Regional offices analyzed the different communication tools available to local actors, identifying that most of them had basic Given the pandemic, many local actors mobile telephones, some of them with WhatsApp, in other cases were unwilling or unable to receive by email, and a minimum percentage with platforms such as technical assistance either because of a Google Meet or ZOOM. Training was provided on these virtual lack of technology or skills to adapt to platforms to local actors, and in other cases adapted to what working remotely. local actors were willing or able to use, such as phone calls and Whatsapp.

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Due to COVID -19, several activities in the approved FY 2020 Work Plan Revised the FY 2020 Work Plan (approved by USAID on June were paused or modified and impact 15th) to adapt indicator targets and include activities to support the Activity’s capacity to meet local actors on the frontline of the pandemic. indicator targets. Applied a survey to the participating youths’ emotional state and their sense of belonging to the Jóvenes Constructores program. The purpose of this survey was to of identify gaps in the support Need to ensure the efficacy and offered, given the changed context of the country since the quality of the Jóvenes Constructores beginning of the pandemic. This information was successfully program is maintained, despite the used to offer more individualized attention to youth suffering transition to a virtual format. from anxiety and stress and offering resources to maintain their emotional health, in order to keep youth engaged and motivated throughout the program. An agreement was established with the departmental director of education in La Paz to coordinate directly with each DDE technician, and a planning and induction meeting was held for recently assigned staff in areas of school networks and Change in leadership and education supervision, resulting in a rapid adaptation coordination and officials in the La Paz, DDE. support. This close coordination with national-level authorities helped to ensure processes are formalized and documented in guides to promote sustainability of best practices, even with high staff turnover. Without water and sanitation specialists on HLG’s team, the Activity contacted Mancomunidades of Higuito and HELVETAS Continuing water and sanitation to help the CCT of Trinidad to implement recommendations activities within the framework of from a social audit during the first quarter of the year. HLG social audit recommendations. learned to effectively leverage support and resources from other local actors and past technical assistance to implement activities. Using the ODK platform, the Activity created a survey that Technical assistance particpants felt participants can access on their own cell phones and tablets by uncomfortable expressing their scanning a QR code. The Activity was able to collect more data intention to migrant or identifying as on returned migrants and intention to migrate in an anonymous returned migrant. way that participants are comfortable with (See Annex 15 for more details).

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Exhibit 13. HLG adapted to providing virtual technical assistance. The following graphic shows HLG’s process of registering virtual technical assistance during COVID -19 pandemic.

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MONITORING AND EVALUATION: PROGRESS MEASURED BY INDICATORS Exhibit 14 shows progress by high-level indicator, including a justification if performance if 10% above or below the target for the year.

Exhibit 1 4. Progress by high -level indicator.

Color Coding Scale

Greater than Category Less than (%) or equal to (%) Below Expectations 0 50 Needs Improvement 50 75 Acceptable 75 100 Beyond Expectations 100

FY2020

Justification for +/- 10% Achievement # Indicator Previous Current Annual Q1-Q3 Cumulative Performance Q4 Target** Baseline Baseline Percentage of citizens satisfied with the local PG1 81% n/a n/a n/a n/a n/a 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 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 Civil society influence index for local service n/a 1.1 34.8 18 n/a n/a n/a n/a improvement*. Number of public polices introduced, adopted, 1.2 repealed, changed, or implemented consistent with 0 38 2 40 41 98% citizen input.

18 Estimated value according to the MELP modification approved by USAID in January 2019.

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Percentage of recommendations being implemented 100% 1.3 that have been subject to external oversight 0 21.3% 8.7% 30.0% 30%

mechanisms.

Citizen’s participation rate for decision making 1.1.1 10% 0.03% 0.03% 1.97% 19 1.9% 20 102% related to the provision of services.

Due to the context of COVID -19, many CSOs were limited in their ability to receive technical assistance and to follow up on existing policies and recommendations. First, CSOs lacked the technology and skills to adapt to working remotely and receiving technical assistance through virtual means. Second, much of civil society's impact comes from Number of CSOs receiving USG assistance engaged its ability to influence local government 1.1.2 0 69 16 85 100 85% in advocacy interventions. and service provider decision-making in public decision-making spaces such as open council meetings and public forums. The above factors have limited the possibility of advancing advocacy interventions. Nevertheless, the Activity will continue to support CSOs in identifying advocacy actions that can be carried out without agglomeration of people. Number of documents with recommendations to 1.2.1 improve service delivery presented by CSOs that 0 n/a n/a n/a n/a n/a comply with a quality checklist. (Cumulative)* Number of mechanisms for external oversight of 1.2.2 public resources use supported by USG assistance. 0 n/a n/a n/a n/a n/a (F) cumulative*. 2.1 LG 40.5% n/a n/a n/a n/a n/a

19 The accumulated participation is 4,316 people. 20 Target approved by USAID to the MELP third modification in August 2020.

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School Networks 33.8% n/a n/a n/a n/a n/a DDE 46.1% n/a n/a n/a n/a n/a Service Providers’ DME 39.8% n/a n/a n/a n/a n/a Management Capacity Index. Health Service Providers* 44.7% n/a n/a n/a n/a n/a Mancomunidades* 56.5% n/a n/a n/a n/a n/a WMB* 37.2% n/a n/a n/a n/a n/a Percentage of service providers that increase the 2.1.1 n/a n/a use of good accountability practices. n/a n/a n/a n/a Number of service providers receiving assistance to 2.2.1 0 148 13 161 21 155 22 104% improve their performance. Number of small infrastructure projects supported 2.2.2 0 n/a n/a n/a n/a n/a by HLG to improve local services*. Percentage change in municipal service investment. Funding from the central government to the municipalities has been distributed late. By September 2020 the municipalities received the transfer for the month of April and a percentage of the transfer for the month of May, which limited the municipal investment budget. Additionally, the pandemic negatively affected local 2.3.1 -7% n/a -13.8% 23 3% 0% governments ability to collect tax revenue. Both these factors affected n/a municipal investment in targeted service sectors. Additionally, local governments allocated their economic resources to address the health emergency. Health was the only sector that showed a 60% increase in municipal investment. Percentage of municipal career servant positions 2.3.2 that are included in the national system of 0 53% 24 3.1% 25 55.8% 55% 101% registration of municipal employees (CAM). Number of sub -national government entities 2.3.3 0 41 41 41 41 100% receiving assistance to improve their performance.

21 Include 108 RE, 41 DME, 6 DDE and 6 JAA. 22 Target approved by USAID to the MELP second modification. 23 As of the date of this report, 5 investment reports are pending for the third quarter for the same number of municipalities. 24 in the previous quarter the accumulated value was 54, but this was since the total number of employees subject to RentCam (denominator) was lower. 25 The total number of employees registered in RENTCAM to date is 323 of 579 required at the end of FY 2020 to 41 municipalities, 79 employees were registered during the year 4.

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Number of persons trained with USG assistance to advance outcomes consistent with gender equality CC1 or female empowerment through their roles in n/a n/a n/a n/a n/a n/a public or private sector institutions or organizations*. Number of returned migrants receiving USG According to HLG technicians who CC2 0 46 8 54 85 64% assistance applied the survey on migration, Number of beneficiaries who express intention to identifying oneself as a returned migrant is migrate in the next 3 years a delicate issue to address, considering that for personal reasons there is not always an openness on the part of the participants to share this information. Some may not want to answer for fear of being identified as a returned migrant and therefore not be to receive further CC3 0 139 33 172 200 86% assistance provided by the Activity, or other negative ramifications from their community for offering this information. In future sessions, it is recommended HLG gains more confidence with the participants before making inquiries about such sensitive issues, especially with new participants just beginning the technical assistance process.

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Grantee Report

Total Start Date End Date Sub Result Active-Closed No. Grant Name Grants Number Grantee/Beneficiary Purpose amount US$

Sub-Result 1.1: Citizen participation Red de Institutos Grantee RED ITC is carrying out the Internship for Inclusion program under the in service delivery decision-making Internships for Social Inclusion in Six Departments of Técnicos 1 HLG-FAA-2018-008 grant. The primary objective of te grant is to provide hands-on capacity 22-Aug-18 31-Aug-20 strengthened; and Sub-Result 1.2: Closed Western Honduras Comunitarios (Red development opportunities to vulnerable youth in western Honduras. Evidence-based citizen oversight of ITC) service delivery increased

The purpose of the Grant Activity is to strengthen the capacities of a minimum of twelve (12) Civil Society Organizations (CSO´s): six (6) in a first stage and a The West Participates: Facilitation of the Process of Asociación para una Sub-Result 1.2: Evidence-based minimum of six (6) in the second stage of the grant. These capacities will be 2 Learning, Collaboration and Adaptation of Citizen HLG-STG-2018-001 Sociedad más Justa 21-May-18 21-May-20 citizen oversight of service delivery Closed oriented towards developing social aversight to improve the provision of public Veda in the West of Honduras (ASJ) increased services ini nutrition, education, water and sanitation, by increasing citizen influence. Through the FAA grant to Catholica Relief Services (CRA), will provide technical Sub-Result 1.1: Citizen participation Catholic Relief assitance and strengthen the capacities of the Community Technical Institiutes in service delivery decision-making Services-United States Network (RED ITC) to carry-out training activities that strengthen the selected 3 Youth Migration Prevetnion Program HLG-FAA-2019-003 9-Oct-19 31-Aug-20 strengthened; and Sub-Result 1.2: Closed Catholic Conference yotuhs softa and ahrd skills and create rootedness in their communities. HLG seeks Evidence-based citizen oversight of INC to provide 180 youth with hard and soft skills that allow them to join the labor service delivery increased market or re-enter education programs. The HLG Activity objective under this grant is to strengthen the municipalities Strengthening the process of implementing the implementation of the Administration Municipal Career law (CAM) and the financial Asociacion de Sub-Result 2.3: Local government Municipal Administrative Career Law and the Financial and taxation system known as the SAFT. Through this support from the HLG 4 HLG-FAA-2018-009 Municipios de 21-May-18 31-Aug-20 administratice management capacity Closed and Tax Administration Computer System in Activity, the grantee will help municipalities generate the knowledge, skills and Honduras (AMHON). increased municipalities of the HLG intervention area. technical capacbilities needed to contribute to the modernization and transparency of local public management in Western Honduras. MANCOMUNIDAD Through the FAA grant ot the Mancomunidad de Muncipios del Valle de Quimistan DE MUNICIPIOS DEL (MAVAQUI), HLG seeks to strengthen 6 Cadastre and Tax Control units of the Sub-Result 2.2: Service providers' Strengthening of the Cadastre and Tax Units of the 5 HLG-FAA-2019-002 VALLE DE member municipalities belonging to MAVAQUI. The grant shall develop the 9-Oct-19 19-Feb-20 capacity to manage service delivery Closed MAVAQUI Member Municipalities QUIMISTAN capacities and akills of the Mancomunidad, empower municipal technicians and improved. (MAVAQUI) improve the performance of the Cadastre and Tax Control units. Under the In-Kind Grant, the HLG Activity will supply Team Allocation at 6 Departmental Directorates of Education (DDE), through the Secretary of State in the Office of Education that will allow them to have the right equiptment for Sub-Result 1.1: Citizen participation proper operation, and thus improve the provision of the service to the Secretaria de Estado in service delivery decision-making departmental, municipal and educational networks there will be a 7th package that 6 Donation of equiptment to SEDUC HLG-IKG-2018-003 en el Despacho de 1-Jun-19 1-Dec-19 strengthened; and Sub-Result 1.2: Closed will be managed from the HLG ITC / GIS office and subsequently donated to the Educacion Evidence-based citizen oversight of Secretary of State in the Office of Education at a later date. This in-kind grant is service delivery increased closely aligned to the strategic interests and expected results of the HLG Activity and contributes directly to achieve the Objective of Improving the Provision of Local Services.

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Financial Report

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Annual Report on Non-Expendable Property During the year, of non-expendable (NXP) property was disposed to hospitals in western Honduras to aid their response to COVID-19 (See Spotlight 2). The NXP equipment included computers, office furniture and vital sign monitors, among other medical equipment. The remaining of disposed procurement consisted of damaged computer equipment and cell phones. Other notable purchases during the year included PPE, sanitation and other essential supplies for triage centers, hospitals, local education authorities, civil society groups, among other local actors (See Sub-Result 2.3, Special Report on HLG’s Pandemic Response). Change in Non-Expendable Property Vehicles Office Furniture & Furnishings Other Non-Expendable Property Total A. Value of property as of last report B. Transactions during this reporting period 1. Acquisitions (add): a. Purchased by contractor b. Transferred from USAID c. Transferred from others, without reimbursement 2. Disposals (deduct): a. Returned to USAID b. Transferred to USAID - contractor purchased c. Transferred to other government agencies d. Other disposals C. Value of property as of reporting date D. Estimated average age of contractor held property 42 months 42 months 42 months 42 months

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Annexes Please click on each hyperlink to access to document in Google Drive.

Annex 1: Technical Assistance Summary by Sector (FY 2020)

Annex 2: Progress by Sub-Activity, divided by Sector Annex 3: COVID-19 Response Phases Annex 4: CCTT Social Auditing Tool Annex 5: IAIP Scores Annex 6: Basic Biosecurity Practices Course Annex 7: Status of CAM Law Implementation Annex 8: Lower Level Indicators Annex 9: Success Stories Annex 10: Counterpart Contribution Annex 11: Contract Deliverables and Fee Report

Annex 12: Implementation of LED Agendas Annex 13: Private Sector Engagement Annex 14: Annual Performance Plan Report Indicators Annex 15: HLG Migration Data

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