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Citizens’ Voice Project

Quarterly Report

July 1 – September 30, 2011

Contract No. AID-391-C-11-00001

November 2011

This report was produced for the United States Agency for International Development (USAID).

It was prepared by the Trust for Democratic Education and Accountability (TDEA).

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List of Acronyms

AASR Anjum Asim Shahid Rehman – Grant Thornton ASP USAID Assessment and Strengthening Program CBOD Capacity Building and Organizational Development CEO Chief Executive Officer COP Chief of Party GEP USAID Gender Equity Program GFEC Grants, Finance and Compliance HBL Habib Bank Limited IT Information Technology IFES International Foundation for Election Systems KPMG Klynveld Peat Marwick Goerdeler - Taseer Hadi & Co. MIS Management Information Systems M&E Monitoring and Evaluation ME&R Monitoring, Evaluation and Research PMP Performance Monitoring Plan PTCL Pakistan Telecommunications Company Limited SCVPA Strengthening Citizens’ Voice and Public Accountability TAF The Asia Foundation TDEA Trust for Democratic Education and Accountability TNA Training Needs Assessment USAID United States Agency for International Development

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Table of Contents

1. Executive Summary……………………………………………………………………………………………………………………………….. 4 2. Project Background ....................................................................................................................................... 5 3. Key Activities and Accomplishments ............................................................................................................ 6

3.1 Project Structure and Finances ............................................................................................................... 6 3.1.1 Post-Disbursement Conditions ................................................................................................... 6 3.1.2 Sub-contracts .............................................................................................................................. 7 3.1.3 Finances ...................................................................................................................................... 7 3.2 Procurement and Office Setup ............................................................................................................... 7 3.2.1 Procurement ............................................................................................................................... 7 3.2.2 Office Setup ................................................................................................................................. 8 3.3 Human Resources ................................................................................................................................... 8 3.3.1 Key Personnel ............................................................................................................................. 8 3.3.2 Other Personnel .......................................................................................................................... 9 3.3.3 Consultants ............................................................................................................................... 10 3.3.4 Personnel Training .................................................................................................................... 10 3.4 Project Documentation ......................................................................................................................... 11 3.4.1 Annual Workplan ...................................................................................................................... 11 3.4.2 Performance Monitoring Plan (PMP) ........................................................................................ 11 3.4.3 Capacity Building Framework ................................................................................................... 11 3.4.4 Information Strategy and Branding Plan .................................................................................. 11 3.4.5 Grants Tools .............................................................................................................................. 11 3.4.6 Audit and Compliance Tools ..................................................................................................... 11 3.5 Significant Internal and External Meetings ........................................................................................... 12

3.5.1 Assessment and Strengthening Program (ASP) ........................................................................ 12 3.5.2 US Embassy Team and USAID Gender Equity Program (GEP) .................................................. 12 3.5.3 Project Steering Committee Meeting ....................................................................................... 12

4. Pending Approvals/Advice .......................................................................................................................... 13 5. Challenges Encountered ............................................................................................................................. 13

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1. Executive Summary This report covers the second quarter of the United States Agency for International Development’s (USAID’s) Strengthening Citizens Voice and Public Accountability Project (SCVPA), from July 1 to September 30, 2011. The project is being implemented by the Trust for Democratic Education and Accountability (TDEA). The SCVPA project is part of USAID’s broader strategy to award contracts directly to Pakistani implementing partners, rather than through foreign intermediaries. This contract is the largest of its kind in Pakistan – and perhaps one of the largest globally – directly from USAID to an entirely non-governmental, non-profit local entity. TDEA has no technical support from personnel and well-established systems in a foreign-based headquarters office, as is typical for almost all large USAID contracts. Nor does TDEA rely on highly-paid international consultants or personnel. Instead, all systems are being established de novo in Pakistan by TDEA senior management and a newly-hired, all-Pakistani project team. Along the way, many lessons are being learned by USAID and TDEA about mutually-respectful communication, realistic timelines, and adjustments needed to the normal USAID contractual relationships and expectations. During the reporting period, TDEA made very significant progress in establishing formal relationships with two sub-contractors, setting up a project office, recruiting and training project personnel, and drafting key project documents and systems. Several key amendments to TDEA policies were revised and approved by the TDEA Board of Trustees, as required by USAID. Sub-contracts were completed with The Asia Foundation (TAF) and Anjum Asim Shahid Rehman (AASR) – Grant Thornton, to provide support services to the project, as anticipated in the original TDEA proposal to USAID. A project office was established and most office systems were put in place, including work stations and computers, telephone and Internet, as well as banking and security services. Procurement of basic office materials was facilitated by the transfer of assets from an earlier USAID project implemented by the International Foundation for Election Systems (IFES). Most key personnel and other highly-qualified team members were recruited following rigorous procedures and with all necessary USAID approvals. In addition, during the reporting period most essential operating systems and project documents were drafted for review and further refinement by senior managers and USAID. These include a Security Plan, a Performance Monitoring Plan, a Revised Cost Proposal, a Grants Manual, a Branding and Marking Plan, and an Information Strategy and Action Plan. All of these activities and accomplishments during the reporting quarter laid a solid foundation for the initiation of project grant activities during the final quarter of 2011. Those developments will be reported in full in the next quarterly report.

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2. Project Background The contract for the Strengthening Citizens Voice and Public Accountability Project (SCVPA), hereinafter referred to as “Citizens’ Voice Project,” was signed between the United States Agency for International Development (USAID) and Trust for Democratic Education and Accountability (TDEA) on May 27, 2011. The project is intended to improve the links between the government and the governed in Pakistan, and enhance substantive public debate and discussion about key social, economic and policy issues in order to increase accountability and bolster public trust and confidence in government institutions and in civil society. In the context of the project, “Citizens’ Voice” means the capacity of citizens to influence government’s decisions on issues that affect their lives. “Accountability” refers to the obligations of power-holders to take responsibility for their actions and the ability of citizens to scrutinize public actors and institutions in order to hold them to account. The project is being implemented through the disbursement of grants to civil society organizations across Pakistan at federal, provincial and district levels. Organizations that receive grants under the project will implement activities on selected thematic areas between January 2012 and May 2014. In the project’s context, “civil society” is defined as any legally-registered non-state, non-governmental Pakistani organization or network dedicated to promoting principles and practices of good governance and improving the lives of the people of Pakistan. The project is using a range of strategies to provide support, including grants, to non-state entities implementing “Advocacy and Oversight” activities, and to state and non-state entities implementing “Public-Private Partnership” activities. “Organizational Development” activities are implemented by TDEA’s sub-contracted partners, The Asia Foundation (TAF) and Anjum Asim Shahid Rehman (AASR) - Grant Thornton. These partners will provide technical assistance and training services to organizations that receive grants. Each quarter, beginning in the last quarter of calendar year 2011, the project will invite applications for grants on current USAID thematic interests, geographical foci and policy priorities, as well as emerging “hot topics”. The Citizens’ Voice Project has three main objectives:

1. Strengthened Voice (Policy Advocacy and Government Oversight): This component supports civic advocacy and citizens’ oversight within the context of specific policy or program areas.

2. Enhanced Capacity (Organizational Development and Targeted Trainings): Activities implemented under this component aim to enhance the organizational capacity of civil society actors.

3. Improved Accountability (Public-Private Connections): This component promotes activities that bring state and non-state actors together, facilitating the emergence of effective networks and productive partnerships and improving accountability.

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3. Key Activities and Accomplishments Activities and accomplishments of the Citizens’ Voice Project during the second quarter, July 1 – September 30, 2011, are presented below.

3.1 Project Structure and Finances

3.1.1 Post-Disbursement Conditions The TDEA Board of Trustees amended several TDEA policies on July 29, 2011, in order to meet USAID post-disbursement conditions. The Trustees approved resolutions to amend and/or insert the following policies that were either part of the post-disbursement conditions or are relevant to improving financial and human resource management at TDEA.

Sr. No.

Agenda Item Nature of Insertion/Amendment

1. Changing the post of National Coordinator

National Coordinator post changed to Chief Executive Officer (CEO).

2. Appointing External Auditor and Approval of 2009-2010 Audit

KPMG Taseer Hadi & Co. appointed for the audit of TDEA accounts for the year ended June 30, 2011. Trustees also approved the audit for the preceding fiscal year.

3. Project Independence with Oversight

Trust Deed amended to enhance oversight of Trust projects, but also to ensure project management independence.

4. Banking Provisions Trust Deed and TDEA Compendium of Policies and Procedures amended to allow credit line, open SCVPA account, and identify signatories to operate the account.

5. Asset Declaration of TDEA Trustees and Employees

Proactive declaration of assets, income, wealth tax returns of TDEA Trustees, employees and heads of member organizations. TDEA to update monthly transactions with vendors, etc.

6. Human Resource Policies

Amendment 1: Permanent Staff in Categories of Employment Amendment 2: Review of Levels of Appointment Amendment 3: Amendments in Elements of Salary Entitlements Amendment 4: Contributory Provident Fund Committee Amendment 5: Staff Rules of Discipline/Grievance Settlement Amendment 6: Existing Qualification Upgrade Amendment 7: Performance Appraisals Amendment 8: Travel Policy

7. Financial Management Policies

Insertion 1: Costing Policy Amendment 1: Petty Cash Management Amendment 2: Endowment Fund Policy Amendment 3: Depreciation Policy Amendment 4: Procurement Procedures

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8. Definition of IT Policy Various aspects of Information Technology (IT) policy amended to improve data security and software development quality.

3.1.2 Sub-contracts Sub-contracts between TDEA and its partners, The Asia Foundation (TAF) and Anjum Asim Shahid Rehman (AASR) - Grant Thornton, were finalized during the reporting period. Draft sub-contracts were submitted for USAID approval in the first week of the second quarter and revised after meetings with partners on July 23 and July 25, 2011, respectively. The sub-contracts were re-submitted to USAID on August 1-2, 2011. The sub-contract with TDEA-AASR was approved by USAID and signed on August 19, 2011. Further discussions with respect to signing of the TDEA-TAF sub-contract continued for a few weeks. The sub-contract needed to be converted in to Pakistani rupees, which involved resolution of exchange rate questions, among others. Furthermore, TAF needed time to seek input and approval from their San Francisco headquarters. A revised draft was approved by USAID on September 8, 2011. The TDEA-TAF sub-contract was signed in the second week of September, with the contract made effective from September 1, 2011.

3.1.3 Finances The project cost proposal was revised in line with the amended budgets of sub-contract partners. The Revised Cost Proposal was submitted for USAID approval on July 7, 2011. TDEA continued to seek a credit line from the selected bank, Habib Bank Limited (HBL). Account opening forms and other related documents were submitted to HBL during the reporting period. TDEA’s lack of liquid capital temporarily hampered the office setup process. The situation was improved after a TDEA working capital advance request of Rs. 11, 542,058 was released by USAID.

3.2 Procurement and Office Setup

3.2.1 Procurement Meetings were held with International Foundation for Election Systems (IFES), as directed by USAID, to plan the transfer of assets from IFES to the Citizens’ Voice Project office. The transfer of assets from IFES to TDEA was initiated on July 31, 2011, following a survey of IFES assets. The transfer of assets is being carried out in a phased manner in view of space and office requirement considerations. In the first phase, TDEA acquired workstations and other equipment to accommodate 20 personnel, based on the recruitment plan. The shifting of equipment and other office materials from IFES to the project office continued throughout the reporting quarter.

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Office vehicle quotations were received and processed according to USAID procurement procedures. At the end of the reporting period, the process was underway to finalize and place the vehicle orders. In addition, an appropriate company for providing janitors and cleaners was selected and began working in the project office.

3.2.2 Office Setup

Most work was completed to set up the project office during the reporting period. The following office setup activities were undertaken:

Project staff started using the project office at the beginning of the quarter. Air conditioners were installed. Two PTCL (Pakistan Telecommunication Company Limited) landlines were established and

a telephone exchange was setup. Computers and a Nayatal Internet connection were set up. A generator was installed, as were office curtains. Partition work was completed in the basement for a meeting hall and offices. The seating arrangement for AASR staff was completed, and some AASR staff began

working in the project office. The photocopier (transferred from IFES) was repaired. More work stations were set up, including the required partitions, to accommodate newly

recruited staff.

3.3 Human Resources

3.3.1 Key Personnel Recruitment of most key project personnel was completed during the second quarter. The Director for Capacity Building and Organizational Development (CBOD) and the Director for Grants, Finance and Compliance (GFEC) were recruited and available at the beginning of the quarter. However, since they were recruited under the sub-contract with TAF, and due to delays in finalizing the sub-contract, TAF and USAID approved a proposal that the Director CBOD would be hired directly by the project until the sub-contract was formalized. The Director CBOD joined the Project Office on August 8, 2011, and the Director GFEC also joined on September 1, 2011.

A recommendation for the Director for Monitoring, Evaluation and Research (ME&R) was withdrawn at the beginning of the quarter, and the post was advertised in The News on July 31, 2011, with the approval of USAID. After careful scrutiny of the applications received, seven applicants were shortlisted. Five shortlisted candidates were interviewed on August 17, 2011, by a team that included the TDEA Chairperson (Mossarat Qadeem) and CEO (Muddassir Rizvi), Citizens’ Voice Project Chief of Party (COP) (Mukhtar Ahmad Ali), TAF Director of Programs (Shahid Fiaz) and TDEA Human Resource Officer (Aymen Abdullah). Two candidates were

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interviewed the following week, and USAID approved the selected candidate in the second week of September. The candidate was expected to join the project on November 1, 2011.

3.3.2 Other Personnel The process for the appointment of the TDEA Internal Audit Team was initiated in the beginning of the second quarter. The post of Internal Auditor was advertised in The News on June 20, 2011. The short-listed candidates were assessed on July 4, 2011, through a written test assessment and interviews. The interview panel included TDEA Director Operations (Amjad Ali Shah), TAF Human Resource Officer (Muddassir Zaffar), and an external audits and accounting expert (Omair Salim). Two candidates qualified for a second interview, led by the TDEA Chairperson and CEO. Both candidates scored well, and TDEA appointed them both as the TDEA Internal Audit Team. Other posts for the first phase of hiring were identified and shared with USAID at the beginning of the quarter. The Scopes of Work and draft advertisement for these positions were approved by USAID on July 27, 2011, with recommended changes. The advertisement was published in The News on July 31, 2011, for these positions:

Director Monitoring, Evaluation and Research (ME&R)

Manager Grants

Manager Finance

Manager Management Information Systems (MIS)

Manager Monitoring and Evaluation (M&E)

Manager Program Development and Research

Manager Communications and External Relations

Human Resource Officer

Administration and Procurement Officer

Network Administrator

Receptionist Approximately 1,400 applications were received by August 8, 2011, for these positions. Interviews were held in phases before August 20, 2011. Recruitment procedures varied, depending on the nature of each position. In order to ensure hiring of high-quality candidates, multiple strategies were adopted, including written tests, panel interviews, second interview of certain candidates, checking references, and negotiations on job responsibilities and compensation. Suitable candidates for some positions were identified. Documentation of those who accepted conditional offers was sent to USAID for approval. The relevant positions were:

Manager Grants

Manager MIS

Manager M&E

Manager Program Development and Research

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Manager Communications and External Relations

Human Resource Officer

Administration and Procurement Officer USAID approved the Manager Grants, Manager MIS, Human Resource Officer, Administration and Procurement Officer. The Manager Grants left the project two days after being hired. The Manager MIS, Human Resource Officer, and Administration and Procurement Officer joined the project team during the reporting period. The recruitment process also led to issuance of a conditional offer letter for the position of Manager Finance, but the candidate for the position declined. At the end of the reporting period, efforts were underway to identify another appropriate candidate. In addition to the advertised posts, conditional offer letters also were issued for the posts of Senior Program Officer for Program Development and Research and Administrative Assistant. The selected candidates had applied for other advertised positions, but they were found to be suitable for the positions that were offered to them. USAID approved the candidate for Senior Program Officer for Program Development and Research, who joined the team soon after. An Office Assistant was also hired during the second quarter, and four Security Guards with back-to-back shifts were appointed at the project office. In addition, the Receptionist and Network Administrator joined in the first week of October. Following the signing of TDEA-AASR sub-contract, AASR also started recruitment of its project staff. The Manager Capacity Building, Supervisor M&E, and Assistant Manager M&E started their jobs during the reporting quarter, and assessment of applications for the capacity building and compliance sections staff got underway. Preparatory work for the second phase hiring was in process at the end of the second quarter. Job descriptions for the remaining vacant posts were drafted.

3.3.3 Consultants The Scope of Work, USAID Biodata Form 1420, and resume for a Media and Outreach Policy Consultant was sent for USAID approval on July 15 2011. USAID approved, and the consultant started working on the Branding and Marking Plan.

3.3.4 Personnel Training

TDEA gave a presentation on TDEA policies and procedures for Citizens’ Voice Project staff including COP, Directors, Managers and administrative personnel on September 12, 2011. The purpose of this presentation was to develop staff understanding of TDEA policies for the smooth running of the project.

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3.4 Project Documentation

3.4.1 Annual Workplan

The first draft of the Annual Workplan was submitted to USAID on June 10, 2011, and USAID’s feedback on it was received on June 15, 2011. During the reporting period, the Annual Workplan was updated in accordance with the USAID feedback.

3.4.2 Performance Monitoring Plan (PMP) Development of performance indicators for the project continued during the second quarter. A first draft of the Performance Monitoring Plan (PMP) was under review by project senior management during the reporting period. The baseline methodology will be drafted once the indicators are approved by USAID. The ME&R Unit staff also started working on monitoring and evaluation plans for the project.

3.4.3 Capacity Building Framework The Director Capacity Building and Organizational Development (CBOD) began development of plans for the capacity building of both the staff of the project and partner organizations, in order to better equip them to deliver on project objectives.

3.4.4 Information Strategy and Branding Plan

The draft Information Strategy and Action Plan was submitted to USAID for approval on September 7, 2011. The Branding and Marking Plan was submitted the same day.

3.4.5 Grants Tools Thematic areas for the first round of grant solicitations were received from USAID. The project team began research and development of the grant program for each theme. Pending the signing of TDEA-TAF sub-contract, TDEA started working on the Grants Manual, which was originally envisaged to be developed and delivered by TAF. The first draft of the manual was finalized with TAF’s assistance in the second week of September 2011 and shared with USAID.

3.4.6 Audit and Compliance Tools Following the signing of the TDEA-AASR sub-contract, AASR deployed its team at the TDEA office for the development of the Internal Audit Manual to fulfill post-award conditions. The draft manual was submitted by AASR to TDEA during the reporting period.

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AASR also submitted to senior project management the first draft of an M&E framework for grant projects along with a checklist of indicators for pre-award assessments and draft letters for potential grantees. Training Needs Assessment (TNA) tools also were drafted by AASR and submitted for comments to senior project management.

3.5 Significant Internal and External Meetings

3.5.1 Assessment and Strengthening Program (ASP)

A meeting was held on August 22, 2011, with staff from USAID’s Office of Financial Management. The agenda of this meeting was to introduce the USAID Assessment and Strengthening Program (ASP) to TDEA and to discuss ways to facilitate TDEA to strengthen its internal capacities for financial management, procurement, and human resource development. TDEA noted that almost all weaknesses identified during the pre-award assessment have been addressed and invited USAID to ask ASP to review the progress. It was decided that another meeting would be held soon in which representatives from ASP would also be invited to participate.

3.5.2 US Embassy Team and USAID Gender Equity Program (GEP)

At the request of Naeem Mirza of Aurat Foundation, which is implementing USAID’s Gender Equity Program (GEP), the Citizens’ Voice Project COP and colleagues met with a delegation from the US Embassy on September 19, 2011, to discuss justice and police reform issues in Pakistan. The delegation included Brooke Williams (US Department of State Political Officer), Venetta Parker (US Department of State Bureau of Narcotics and Law Enforcement) and Leslie Gonzales (Gender Specialist). Mr. Naeem Mirza and GEP COP Simi Kamal also participated in the meeting.

3.5.3 Project Steering Committee The first Citizens’ Voice Project Steering Committee meeting was planned for September 19, 2011, at the project office to discuss progress on project implementation and next steps. This meeting was postponed at USAID’s request.

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4. Pending Approvals/Advice As of the end of the reporting quarter, approval from USAID was awaited on the following:

Sr.

No. Item

Date Submitted

to USAID

USAID

Response

1. Stationary (Project

Visibility Materials) June 17, 2011

Awaited as of

Sept 30, 2011

2. Security Plan June 30, 2011 Awaited as of

Sept 30, 2011

3. Revised Cost Proposal July 7, 2011 Awaited as of

Sept 30, 2011

4. Reimbursement Request

Submitted August 27, 2011.

Revised September 8, 2011 (at

USAID request).

Awaited as of

Sept 30, 2011

5. Branding and

Marking Plan September 7, 2011

Awaited as of

Sept 30, 2011

6. Information Strategy

and Action Plan September 7, 2011

Awaited as of

Sept 30, 2011

7. Grants Manual September 16, 2011 Awaited as of

Sept 30, 2011

5. Challenges Encountered During the reporting quarter, TDEA encountered the following challenges and addressed issues in the following ways:

Sr.

No. Challenge Resolution / Mitigation

1. Delay in finalization of sub-contracts Resolved during the reporting period

2. TDEA’s lack of liquidity affected the

office setup progress

Situation improved when TDEA’s

requested working capital advance was

released by USAID

3. Some recruited personnel declined

offers Personnel recruitment continues