Presented byPresented by

Chris UmebeseChris Umebese

30 November 200530 November 2005

Workshop on Development of LEEDS Workshop on Development of LEEDS Plan in Apapa Iganmu LGA, Lagos Plan in Apapa Iganmu LGA, Lagos

StateState

2005Workshop on Development of LEEDS Plan 2

Agenda

1. Workshop Objectives

2. Understanding NEEDS, SEEDS and LEEDS

3. LEEDS Development Approach

4. The Challenge of Capacity in LEEDS Development

5. LEEDS Framework

6. Tasks to be Accomplished(Charting a Road Map)

- Legal Responsibilities

- Specific Services

- Budgeting

- Budget Ceiling

- Committed Expenditure

- Consultation

- Publication

2005Workshop on Development of LEEDS Plan 3

Workshop Objectives

The workshop has the following objectives:

   to help top local government officials who should lead and direct the development of LEEDS to identify all the issues they will face and to give ideas on how they can be tackled;

   to agree a framework for designing and implementing LEEDS; and

   to offer practical advice on how to implement LEEDS effectively.

 

UNDERSTANDING NEEDS, SEEDS AND LEEDS

What are the linkages?

NEEDS and SEEDS depend upon implementation of Local Empowerment and Economic Development Strategies (LEEDS) to achieve a measure of success. Why?

LGA closer to grassroots

Grassroots experience high poverty rate

Development indices are better measured at the grassroots.

LEEDS Development Approach

A three-stage approach to initiating LEEDS could be adopted:

Defining and clarifying responsibilities;

Specifying resource allocations and sticking to them; and

Developing a support mechanism for the development of LEEDS.

The Challenge of Capacity in LEEDS Development

LGA capacity is not great.

They lack the minimal autonomy required to be an effective tier of government.

Generally they encounter funding problems. But most authorities either have poor local revenue generation opportunities or else exhibit a poor record of collection.

They lack skill and capabilities in basic areas of development.

 

LEEDS Framework

The LEEDS framework places emphasis on developing a budget which describes the resources allocated to achievement of specified policy output targets.

It should provide the basis for publication of government plans and for public monitoring of income and expenditure performance, therefore making government more transparent and accountable.

It also provides a basis for potential re-structuring of the Council so that its staff arrangements are devoted to achievement of outputs.

2005Workshop on Development of LEEDS Plan 8

The LEEDS Framework

1.Set Policy TargetsFor example, by date “x”• No floods during wet season• Incidence of go-slows reduced to “X”• No illegal market stalls • Water-born disease incidence down

from 700 per 100,000 to 350• Waste collected weekly from house

2. Develop StrategiesFor example, to deliver target 1• Clear drains• Administer building regulations• Implement maintenance schedule• Reconcile responsibility confusions• …….. Plus others depending on

analysis

3. Resource AllocationsHuman Resources• Numbers, costs, structures,

development

Financial Resources• Capital and Recurrent Allocations• A balanced budget

4. Budget Implementation

• Project and Service Management

• Due Process• Accounts control• Community involvement

5. Monitoring and Evaluation

• Management, accounts and value for money audit

• Project evaluation• Policy and budget revision

Pilot ProjectsEach pilot provides

lessons and illustration to help change other

parts of the system

1

2

3

Feedback to revise policy targets given resource constraints

Participation

Party Policy

National Policy Guidelines

Need for Civil Service Reform

Need for Budget Reform

A FRAMEWORK FOR LEEDS

Information

Participation

Functional Analysis

The LEEDS Process

-     The LEEDS Framework (the 5 steps cycle)

-          The Supporting Framework

-          Organizing stakeholders’ consultative forum

-          Inauguration of LEEDS Committees and Subcommittees

-          Responsibilities of Committees and subcommittees

-          Data collection and analyses

-          Drafting of the strategy document – issues for consideration

-          Pilot projects

-          Implementation imperatives

 

2005Workshop on Development of LEEDS Plan 10

Tasks to be Accomplished (charting the road map)

           Review and understand an overall purpose and structure for LEEDS;•·         Review and agree, especially in context of legislation, the major functional responsibilities of the council;•·         Produce a list of service areas for which the council is responsible (or in which it has a shared responsibility);•·        Consider and agreed some basic policy (output or deliverable) targets to be delivered under each• service responsibility heading;•·         Develop outline strategy proposals and action plans for achievement of all (or selected) targets;·         Describe the main areas of management reform required to facilitate these strategies, including:

• Retrenchment and restructuring programme;• Reform to revenue strategy and collection;• Improvements to local and State Government relationships and cooperation; and• Management system improvements and stream-lining;

•·   Outline basic capital and recurrent budgets to the targets, based mainly upon projected income, • but including possible extra assistance required;•·         Describe the basic elements of a media programme to publicize the plans; and•·         Agree a plan for carrying the plans to a wider range of stakeholders, at first those administratively and• politically internal to the Council, followed by public interest groups.

Legal Responsibilities

Before identifying key service target areas it is necessary to list the responsibilities of the council. These may include the following:

              Cemeteries;

                   Homes for the destitute and infirm;

                   Slaughter houses;

Legal Responsibilities cont’d

                   Markets;

                   Motor parks;

                   Public conveniences;

                   Roads

                   Street lighting;

                   Tertiary and some secondary drains;

 

Legal Responsibilities cont’d

Parks;

                   Names and numbers;

                   Sewage;

                   Refuse;

  Regulation of outdoor advertising, movement of pets, shops, kiosks, restaurants, and liquor licensing;

                   Maintenance of primary schools;

                   Development of natural resources;

                   Primary health care.

Budget Ceiling

How much money is available?

What was last years projected external allocation and sources?

What are the expectations this year?Annual allocation

Share of VAT

Stabilisation fund

State allocation

Committed Expenditure

Identify them

Specific Services

Identify them e.g.

roads and lighting, refuse collection, clearing drains, etc.

Assess their working conditions

Cost what it will take to fix them

Policy Targets

Identify major outcomes from policy targets e.g.

     No garbage on the streets;

     No flooding;

     No potholes; and

     Streets are lit.

Consultation

Once the plan is complete (in draft) it will be necessary to take it to other stakeholders. There are two sets:

  First it needs to be discussed and refined with council employees, particularly because they will be responsible for implementing the plan, and because changes in the way of operation are likely to effect their lives substantively;

 Second with stakeholders around Apapa and Iganmu areas, including political, economic, social and community representatives.

Agreement of Council employees

There may be some resistance to change from some council employees. LEEDS is likely to mean changes in employment establishments as well as the practice of work for those who remain in the service.  

It is likely that initially the plan will require a considerable reduction in training. This is because there is no point in training personnel unless there is a clear task-related (job specification) requirement for it. Until the organisation is restructured therefore, any training is likely to be misdirected.

Publication

The LEEDS plan will specify, amongst other things:

·    Sources of revenue, including those passed via the state government;

·     Expected outputs; and

·     The means by which these will be delivered, including budget allocations.

If these are published, and if a public budget monitoring committee is established, then public pressure may be brought to bear upon the council (both its politicians and its employees) and the state government to deliver on their commitments. This will yield improved accountability and transparency, and should encourage good performance.

2005Workshop on Development of LEEDS Plan 21

Why MTEF?

The Medium Term Expenditure Framework (MTEF) approach was developed to address a number of weaknesses in policy and budget planning in developing countries including:

Lack of prioritisation of expenditure allocation in line with LGA and sectoral policies Funds are allocated on an annual incremental basis, i.e. by adding a percentage to

the previous year’s budget allocation rather than on the basis of clear prioritisation and trade off between sectors. This also means that expenditures tend to increase from year to year, rather than being assessed on the basis of whether funds are being used to achieve government objectives.

Fragmentation of planning and budget systems LGA plans may be prepared for a medium term period (usually five years) without

a mechanism for linking the plans to the annual budget. This often results in LGA plans being unaffordable and budgets are prepared

without any reference to LGA plans. The budget process does not involve an assessment of alternative means of

achieving objectives nor on cost efficiency and effectiveness. Further fragmentation of systems in that Recurrent and Capital/Development

budgets are planned and implemented separately, so that recurrent costs are not planned for when new infrastructure is included in the budget.

Recurrent Budgets are planned on an incremental basis, so that the impact of these expenditures is not assessed as part of the Budget process.

2005Workshop on Development of LEEDS Plan 22

WHY MTEF - cont’d

Donor funded projects are often planned outside the scope of government plans, so that they are often seen as “donor driven” and governments cannot be held accountable for the allocation and use of these funds.

The MTEF seeks to improve the planning and allocation of resources within a three-year framework so that available resources (both from Government and donors) are divided amongst the different sectors on priority basis.

The MTEF can also be described as: a process for matching limited resources with unlimited needs. An integrated system through which all resources from both government and donors are allocated on the basis of priorities; an approach that involves a medium term focus, so as to plan ahead for changes in policy and expenditure reallocations; a process that provides spending agencies with increased predictability in the flow of resources.

2005Workshop on Development of LEEDS Plan 23

The MTEF Process

An MTEF process involves: Developing realistic macroeconomic projections of total resources. Developing comprehensive sector ceilings for a three-year period early in the

process, so that LGA departments and units can prepare their budgets on the basis of these ceilings, thereby avoiding the usual “game” of budget negotiations.

These ceilings need to be based on the top down decisions (ideally by LGA Executive Council) of how resources should be allocated between sectors based on its priorities, and bottom up information on the requirements in each sector to meet these objectives (Figure 1).

The budget preparation process focusing on estimating the resources required to meet government objectives, through clear definition and costing of LGA’s plans, thereby moving away from the incremental approach to budget preparation.

From the bottom up, the LGA estimates the resources required to achieve government objectives in its sectors. Traditional incremental approaches to budget preparation do not enable LGAs and spending agencies to develop these resource estimates and therefore the MTEF needs to include the introduction of processes to define and cost the achievement of government objectives at the sector level.

2005Workshop on Development of LEEDS Plan 24

Figure 1. The MTEF Process Top-down: Ministry of Finance, Executive Council and House of Assembly Bottom-up: Sector Ministries

Macroeconomic framework

Ceilings Ministry ceilings developed base on bottom-up requirements.

Cabinet Debates ceilings based on governments priorities

Three(3)year estimates Ministries finalise estimates based on approved ceiling for three-year period.

National Assembly Approves first year estimates, two forward years indicative

Sector Review Ministries define their objectives, result indicators, activities and costs for three-year period based on policies and priorities

End of Presentation

Thank you for listening and GOD bless