GUATEMALA LOCAL GOVERNANCE PROJECT QUARTERLY REPORT (OCTOBER-(APRIL-(JULY- SEPTEMBER, JUNE DECEMBER 2012) 2011) 2011) OCTOBERJULY 2012 2011 This publication was produced for review by the United States Agency for International DevelopmentDevelopment. Itand was was prepared prepared by b ARD,y ARD, Inc. Inc. Prepared by the Guatemala Local Government Project for the United States Agency for International Development, under the Sustainable Urban Management II Indefinite Quantity Contract (No. EPP-I-04-04-00035-00). ARD Principal Contacts: Alexandra Forrester Donald Peterson Project Manager Senior Technical Advisor/Manager ARD, Inc. ARD, Inc. Burlington, Vermont Washington, DC Tel.: 802-658-3890 Tel.: 703-807-5700 [email protected] [email protected] GUATEMALA LOCAL GOVERNANCE PROJECT QUARTERLY REPORT (APRIL-JUNE 2012) JULY 2012 DISCLAIMER The authors' views expressed in this publication do not necessarily reflect the views of the United States Agency for International Development or the United States Government. GUATEMALA LOCAL GOVERNANCE PROJECT: QUARTERLY REPORT (APRIL-JUNE, 2012) i ACRONYMS AND ABBREVIATIONS AGAAI Asociación Guatemalteca de Alcaldes y Autoridades Indígenas AGEXPORT Asociación Guatemalteca de Exportadores ANAM Asociación Nacional de Municipalidades CAM Commission of Municipal Affairs (of Congress of the Republic) CMM Municipal Commission of Women COCODE Consejos Comunitarios de Desarrollo CODEDE Consejos Departamentales de Desarrollo COMUDE Consejos Municipales de Desarrollo COP Chief of Party DAFIM Dirección de Administración Financiera Integrada Municipal DEMUCA Fundación para el Desarrollo Local y el Fortalecimiento Municipal e Institucional de Centro América y el Caribe DMP Dirección Municipal de Planificación FtF Feed the Future GIS Geographical Information System IGSS Instituto Guatemalteco de Seguridad Social INFOM Instituto Nacional de Fomento Municipal IR Intermediate Result IUSI Impuesto Único sobre Inmuebles IVA Impuesto al Valor Agregado LED Local Economic Development LGP Local Governance Project LLR Lower Level Result MINFIN Ministerio de Finanzas NIM Número de Identificación Municipal OMM Municipal Office of Women OMA Municipal Offices of Water PDM Municipal Development Plans RIC Registro de Información Catastral (Cadastral Information Registry) GUATEMALA LOCAL GOVERNANCE PROJECT: QUARTERLY REPORT (APRIL-JUNE, 2012) ii SAN Food & Nutritional Security SCEP Secretaría de Coordinación de la Presidencia SEGEPLAN Secretaría General de Planificación y Programación de la Presidencia SIAF Sistema Integrado de Administración Financiera SIAF-Muni Sistema Integrado de Administración Financiera Municipal USAID United States Agency for International Development GUATEMALA LOCAL GOVERNANCE PROJECT: QUARTERLY REPORT (APRIL-JUNE, 2012) iii CONTENTS ACRONYMS AND ABBREVIATIONS ……………………………………………………………… ii CONTENTS…………………………………………………………………………………………… iv EXECUTIVE SUMMARY……………………………………………………………………………. 1 RESUMEN EJECUTIVO …………………………………………………………………………… 11 1.0 NARRATIVE REPORTING OF SUB-IRS, LOWER LEVEL RESULTS (LLR), AND SPECIAL ACTIVITIES……………………………………………………………………………… 22 1.1 SUB-IR 2.1: MORE TRANSPARENT SYSTEMS FOR MANAGEMENT OF PUBLIC RESOURCES BY LOCAL GOVERNMENTS……………………………………………….. 22 1.1.1 Lower Level Result (LLR) 2.1.1: Municipalities use transparent financial management processes, procedures, and systems…………………………………………………………………...……...… 22 1.1.2 LLR 2.1.2: All selected municipalities sustainably increase own-source revenues…………… 23 1.1.3 LLR 2.1.3: Municipalities practice responsible indebtedness…………………………………… 29 1.1.4 LLR 2.1.4: Selected municipalities/Mancomunidades improve basic services………………. 30 1.1.5 LLR 2.1.5: Municipalities improve the enabling environment for local economic development … 37 1.2. SUB-IR 2.2: MORE EFFECTIVE ADVOCACY OF MUNICIPALITIES FOR LOCAL CITIZEN PRIORITIES WITH NATIONAL GOVERNMENT………………….………………………….. 38 1.2.1 LLR 2.2.1 Municipal associations effectively represent their constituencies……………….. 39 1.2.2 LLR 2.2.2 ANAM is financially capable to carry out its mission……………………………… 41 1.2.3 LLR 2.2.3 ANAM improves its service delivery capacity………………………………………. 42 1.3 SUB-IR 2.3: MORE INCLUSIVE AND TRANSPARENT POLITICAL PROCESSES………..... 43 1.3.1 LLR 2.3.1: Mechanisms for citizen participation strengthened in each selected municipality………………………………………………………………………………. 43 1.3.2 LLR 2.3.2: Improved public communication mechanisms at the local level regarding municipal processes. …………………………………………………………………….. 45 1.3.3 LLR 2.3.3: Increased participation of women and indigenous people in selected municipalities… 45 1.4 SPECIAL ACTIVITIES………………………………………………………………………………..….. 46 1.4.1 Coordination with other donors, partners, and/or USAID Projects………………………..……. 46 GUATEMALA LOCAL GOVERNANCE PROJECT: QUARTERLY REPORT (APRIL-JUNE, 2012) iv 2.0 CROSS-CUTTING THEMES: GENDER, INDIGENOUS PEOPLES, AND LOCAL ECONOMIC DEVELOPMENT…………………………………………………………………………………………… 47 2.1 GENDER AND INDIGENOUS PEOPLES………………………………………………………….. 47 2.2 LOCAL ECONOMIC DEVELOPMENT……………………………………………………………… 48 3.0 MONITORING AND EVALUATION PLAN…………………………………………………………….… 49 3.1 M&E QUARTERLY REPORT…………………………………………………………………………... 49 4.0 SMALL GRANTS PROGRAM…………………………………………………………………………….. 62 5.0 RAPID RESPONSE FUND………………………………………………………………………………… 64 6.0 TRAINING AND SHORT-TERM TECHNICAL ASSISTANCE………………………..………………... 65 7.0 SPECIAL REPORTING…………………………………………………………………………..…………. 66 7.1 PROJECT MANAGEMENT……………………………………………………………………………. 66 7.2 FINANCIAL REPORT………………………………………………………………………………………. 67 7.3 BUDGET REALLOCATIONS………………………………………………………………………… 68 8.0 ACTIVITY PLAN FOR NEXT QUARTER: JULY-SEPTEMBER 2012…..………………………..….. 69 9.0 ANNEXES / OTHER REPORTS…………………………………………………………..……………… 75 GUATEMALA LOCAL GOVERNANCE PROJECT: QUARTERLY REPORT (APRIL-JUNE, 2012) v EXECUTIVE SUMMARY During the quarter ending June 30, 2012, LGP intensified its field work to move on after the conclusion of transition activities in the target municipalities. The LGP technical assistance has resulted in improved levels of administrative organization after new authorities took office. While new municipal authorities’ first priority was to get acquainted with municipal procedures and responsibilities and reorganizing municipal staff, they have now begun to focus on particular projects. In this context, LGP has taken the opportunity to work on aspects of program implementation that were temporarily suspended. A new board of directors for ANAM and the decision of the new President to dismiss key personnel financed by LGP created a critical situation in the first quarter of 2012. However, an assertive approach and close cooperation between LGP and ANAM, particularly with the new President, has resulted in program progress. In addition, as explained in the previous report, another successful nationwide training event was held for municipal officers and vacancies were filled through a formal and public selection process. This is important to mention because it has set the tone for further cooperative work with ANAM’s new authorities, as will be explained in the following pages. This report will focus on the progress made assisting municipalities to strengthen their capacity to: improve own-source revenue ensure accountability and financial reporting as required by law improve service delivery – particularly drinking water collect for services provided support citizen participation efforts in the region SUB‐IR 2.1: MORE TRANSPARENT SYSTEMS FOR MANAGEMENT OF PUBLIC RESOURCES BY LOCAL GOVERNMENTS Lower Level Result (LLR) 2.1.1: Municipalities use transparent financial management processes, procedures, and systems LGP training focused on assisting staff from Dirección de Administración Financiera Integrada Municipal (DAFIM), Dirección Municipal de Planificación (DMP), members of quoting and evaluation commissions, and members of the municipal council. Two important topics addressed were the Ley de Contrataciones del Estado y su Reglamento (law that regulates government purchases) and its regulations, as well as how to input purchase information into the Guatecompras system. Transparent systems for management of public resources are closely related to following established quoting and purchase procedures. LGP worked with municipal staff to ensure they understand and follow the required procedures and record them appropriately. The use of checklists was encouraged to guarantee appropriate records are kept for projects carried out either directly by the municipality or by the Departmental Development Council – CODEDE - . GUATEMALA LOCAL GOVERNANCE PROJECT: QUARTERLY REPORT (APRIL-JUNE, 2012) 1 LGP continues to encourage all target municipalities to charge for municipal services and to define cost-effective rates, as a means to improve their own-source revenue. Historically, services were not charged for and for those that are, rates are outdated. Real examples of how to calculate these rates were dealt with during the regional training workshop “Preparing the 2013 Municipal Budget, Module 1: How to calculate the cost of municipal public services”. Staff from 10 of the 13 target municipalities attended the workshop, which also attracted staff from the municipalities of Ipala and Quetzaltepeque, Chiquimula, not LGP targets. Obstacles LGP’s major training obstacle has been the turnover among technical and administrative staff, which has required providing special attention and assistance to new and inexperienced staff. Little progress was possible in Sansare, where the