MALAWI LOCAL GOVERNMENT ACCOUNTABILITY AND PERFORMANCE FIRST QUARTERLY REPORT FISCAL YEAR 2018 October 2017 to December 2017 Prepared by DAI Malawi LGAP Quarterly Report FY2018, Quarter 1 | 1 MALAWI LOCAL GOVERNMENT ACCOUNTABILITY AND PERFORMANCE (LGAP) Quarterly Report First Quarter - Fiscal Year 2018 October 2017 – December 2017 Program Title: Malawi Local Government Accountability and Performance (LGAP) Contract Number: AID-OAA-I-14-00061/AID-612-TO-16-00004 Sponsoring USAID Office: USAID/Malawi Contractor: DAI Date of Publication: January 31, 2018 On the cover: Community members in Zomba District prepare their Village Action Plan (VAP) report out. Photo credit: Jessica Benton Cooney CONTENTS ACRONYMS AND ABBREVIATIONS ................................................................................ IV EXECUTIVE SUMMARY........................................................................................................ 6 Overall ObJective ................................................................................................................. 7 Program Strategy ................................................................................................................ 8 PART I: ACHIEVEMENTS IN KEY RESULT AREAS ....................................................... 10 Result Area 1: Increasing Local Government Performance and Transparency .......... 10 R1.1 District Development Planning, Budgeting, and Implementation Process .............................................. 11 Sub-Result 1.2 Accountability, PFM, and Oversight of Public Expenditures Improved .................................. 16 Sub-Result 1.3: Capacity of Councilors to Serve as Effective Representatives Improved ............................. 17 Sub-Result 1.4: Own-Source Revenue and Local Economic Development Increased .................................... 19 Sub-Result 1.5: USAID Activities are Better Integrated in District Planning and Budgeting ........................ 20 Result Area 2: Demand for Accountable Government Strengthened at the Local Level ............................................................................................................... 21 Sub-Result 2.1: Citizen Participation in Local Government Planning and Policy Development Increased 21 Sub-Result 2.2: Social Accountability and Transparency of Public Expenditure Management and Service Delivery Improved ...................................................................................................................................... 23 Sub-Result 2.3: USAID Support is Better Integrated in Social Accountability Activities ................................ 25 Result Area 3: Decentralization Policy Environment and Systems Improved – Policy Interface ................................................................................................................... 25 Sub-Result 3.1: Select Policies and Legal Reforms Related to Decentralization Supported ........................ 26 Sub-Result 3.2: Public Financial Management Systems Improved ...................................................................... 29 Sub-Result 3.3: Human Resources and Key Management Systems Improved ............................................... 30 Sub-result 3.4 USAID Sectoral Support for Policy Reforms Coordinated, Reinforcing Decentralization .. 31 Integration .......................................................................................................................... 31 USAID IP-to-IP Integration .............................................................................................................................................. 32 Construction Plans for the Next Quarter ....................................................................... 32 Lessons Learned, Problems Encountered and Proposed Remedial Actions ................ 33 Success Stories ................................................................................................................... 33 PART II: RELEVANT ACTIVITIES BY SECTOR .............................................................. 34 Education ............................................................................................................................ 34 Health .................................................................................................................................. 35 Agriculture .......................................................................................................................... 36 PART III: PROGRESS BY INDICATOR AND MONITORING AND EVALUATION ... 37 Activity Performance Monitoring and Evaluation Plan .................................................. 37 Monitoring and Evaluation .............................................................................................................................................. 37 Collaboration, Learning and Adaptive Management (CLA) Strategy .................................................................. 37 Monitoring and Evaluation Plan for the Council with MLGRD ............................................................................. 38 PROJECT MANAGEMENT AND ADMINISTRATION .................................................... 46 STTA in the Reporting Period .......................................................................................... 46 Staffing ................................................................................................................................ 46 ANNEX 1: SELECTED CASES DEMONSTRATING PROGRESS IN PFM AT THE DISTRICT LEVEL .................................................................................................. 50 ANNEX 2: SUCCESS STORY ............................................................................................. 55 Malawi LGAP Quarterly Report FY2018, Quarter 1 | iii ACRONYMS AND ABBREVIATIONS ADC Area Development Committee AEC Area Executive Committee CDCS Country Development Cooperation Strategy CDF Constituency Development Fund COP Chief of Party COR USAID Contracting Officer’s Representative CPS Citizen Perception Survey CBO Community-Based Organization CLA Collaborative Learning and Adaptive CSO Civil Society Organization DADO District Agriculture Development Officer DC District Commissioner DCOP Deputy Chief of Party DDB District Data Bank DDP District Development Plans DDPF District Development Planning Framework DDPS District Development Planning System DEC District Executive Committee DEM District Education Manager DHO District Health Officer DHRMD Department of Human Resource Management and Development DNCC District Nutrition Coordinating Committee DMECC District Monitoring and Evaluation Coordinating Committee DOF Director of Finance DPD Director of Planning and Development EPAs Extension Planning Areas EP&D Department of Economic Planning and Development EWs Establishment Warrants FISP Fertilizer Input Subsidy Programme FY Fiscal Year GIS Geographical Information System GOM Government of Malawi GUC Grants under Contract HACs Health Advisory Committee HR Human Resources HRM Human Resources Management HRMIS Human Resources Management Information Systems HAS Health Assistant Surveillance ICT Information and Communications Technology IFMIS Information Finance Management Integrated System KPA Key Performance Area LAPA Local Authority Performance Assessment LASCOM Local Authority Service Commission LDF Local Development Fund LGA Local Government Accountability LGSC Local Government Service Committee MALGA Malawi Local Government Association M&E Monitoring and Evaluation ME&L Monitoring, Evaluation, and Learning MGDS 111 Malawi Growth and Development Strategy 111 MISA Media Institute of Southern Africa MJCA Ministry of Justice and Constitutional Affairs Malawi LGAP Quarterly Report FY2018, Quarter 1 | iv MLGRD Ministry of Local Government and Rural Development MP Member of Parliament MSCE Malawi School Certificate of Education NAO National Audit Office NGO Non-Governmental Organization NICE National Initiative for Civic Education NORC National Opinion Research Center NLGFC National Local Government Finance Committee OPC Office of the President and Cabinet ORT Other Recurrent Transactions PAC Public Affairs Committee PEA Political Economy Analysis PFM Public Financial Management PMEP Performance Management and Evaluation Plan PIRS Performance Indicator Reference Sheet PTA Parent-Teacher Association SDGs Sustainable Development Goals SEP Social Economic Profile SMS Short Message Service STTA Short-Term Technical Assistance TA Traditional Authority TAMIS Technical Administrative Management Information System TD-PFMA Technical Director for Public Financial Management and Accountability TORS Terms of Reference USAID United States Agency for International Development VDC Village Development Committee Malawi LGAP Quarterly Report FY2018, Quarter 1 | v EXECUTIVE SUMMARY This report presents progress made on the Local Government Accountability and Performance Program (LGAP) as planned in the Annual Work Plan for its second year of implementation, FY2017/ 2018. It highlights activities conducted toward the outcomes and outputs, as well as toward achieving the targets. The report also makes a deliberate effort to capture and present challenges in implementation and the lessons learned as they inform program priorities and adjustments on the program to achieve its objectives moving forward. During the first quarter, LGAP concluded several interventions. Under Result Area 1, the project supported the completion of District Socio Economic Profiles (SEPs)