Income Generation Activity (IGA) - EQUIP Tanzania · Parents and Communities to effectively manage and implement the Income Generation Activity (IGA) Grant, on intention of developing

Education Quality Improvement Programme in Tanzania IGA Grant Management and Implementation Manual – page 1

Income Generation Activity (IGA)

Grant Management and Implementation Manual

EDUCATION QUALITY IMPROVEMENT

PROGRAMME IN TANZANIA

EQUIP-Tanzania

The United Republic of Tanzania

President’s Office – Regional Administration and Local Government

Ministry of Education and Vocational Training

Funded by Department of International Development (DFID)


Glossary

DC District Council

DED District Executive Director

DEO District Education Officer

DFID Department for International Development

EQUIP-T Education Quality Improvement Programme in Tanzania

FO Fund Officer, EQUIP-T

IGA Income Generation Activity

LGA Local Government Authority

PTP Parent Teacher Partnership

REO Regional Education Officer

SC School Committee

SDP School Development Plan

WEO Ward Education Officer


Contents

1 Introduction 4

2 Eligibility and Size of the IGA grant 4

3 Cycle from design to implementation of the IGA grant 4

4 Activities supported and not supported by the IGA Grant 9

5 How to release and use the IGA grant 10

6 Record keeping for the IGA grant 11

7 Reporting for the IGA grant 11

8 Roles and responsibilities on managing the IGA Grant in Schools 12

Appendix 1 - List of schools Approved for IGA Grant funding 15

Appendix 2A - Funds Request Form for transferring the IGA Grant to the school account 16

Appendix 2B - Funds Request Form for IGA Grant implementation by schools 17

Appendix 3 - Cashbook Template 19

Appendix 4 - Quarterly Bank Reconciliation Statement Template 20

Appendix 5 - Quarterly school financial reporting template 22


1 Introduction

This Manual has been prepared to assist School Committees (SC), Teachers, Parents and Communities to effectively manage and implement the Income Generation Activity (IGA) Grant, on intention of developing a profit generating business that support schools.

The IGA Grant has been introduced to support IGA initiatives at the school level. The grant will be provided and disbursed by the responsible Local Government Authority (LGA) to specific qualified schools.

The IGA is a school based intervention which aims to:

Develop pupils’ life skills and understanding of a business environment,

as well as gaining subject knowledge for the activity;

Generate additional school revenue which can contribute to implement

the activities identified in the School Development Plans (SDP);

Enhance the effectiveness and the motivation of the voluntary School

Committees;

Improve the relations between schools and the community, and;

Learn how to effectively manage school grants.

2 Eligibility and Size of the IGA grant

Every government primary school in the 51 target districts within the seven regions of Dodoma, Kigoma, Simiyu, Shinyanga, Tabora, Mara and Lindi can apply for the IGA grant.

The IGA Grant will be disbursed to schools as a one-time payment.

The maximum grant value is TZS 1,500,000. This will be paid to a maximum of 50% of schools that have received IGA training and submitted a successful business proposal to the DEO office.

3 Cycle from design to implementation of the IGA grant

The entire cycle from developing to awarding, implementing, and monitoring the IGA Grant is depicted in the diagram below and elaborated upon in this chapter.


Figure 1. School Income Generating Activities: from design to implementation


I. Training and submitting IGA business proposals by schools:

Provide IGA training to all EQUIP-Tanzania primary schools (4 school representatives), all WEOs, and eight DEOs in each of the 51 EQUIP-T LGAs.

Development of business proposals based on EQUIP-T training guidelines, following the format as prescribed in the application manual distributed to all eligible primary schools. This format includes a set of questions in relation to the relevance of the IGA intervention, its marketability, sustainability, and profitability.

II. Reviewing and scoring IGA business proposals by LGAs and validation by Regional Secretariats:

Schools submit their business proposals to the LGA office.

The DEO office team assess the proposals. The assessment is made by trained LGA officers who score IGA proposals submitted by schools. The scoring is based on established criteria following the IGA application manual.

The LGAs recommend 50% of the schools to qualify for the IGA Grant. The LGAs will forward the recommended business proposals to the Regional Secretariat to validate and endorse the recommended proposals.

In case of any observations, the Regional Secretariats will provide written comments against LGA recommended individual business proposals. These comments will need to be addressed before the grant can be released to these schools.

III. Compliance Assessment by Fund Officers:

To ensure the above steps were followed in each LGA, and to highlight the importance of the activity, all EQUIP-T Fund Officers conduct a compliance assessment on the IGA review and selection process.

This compliance assessment is based on a sample review of business proposals (25% of recommended and 12.5% of rejected proposals) with the aim to assess whether the LGAs and Regions have correctly


applied the selection criteria and recommended viable commercial activities for onward granting.

IV. Feedback Loop:

EQUIP-T Fund Officers will report on their findings to the Regional Secretariats. This will not include specific references to individual business plans, as the compliance assessment is sample-based. However, the reports may contain general guidance to be addressed before the grant can be released (e.g. on type of projects/review process etc.).

Regional Secretariats will inform LGAs on the outcome of their own assessment and on any critical issues reported by the EQUIP-T Fund Officers.

LGAs will get back to those schools that require strengthening of their business proposals as advised by the Regional Secretariat and/or through the FOs compliance assessments.

Schools with support from the LGAs (WECs, DEOs, Trade Advisers, etc.) will be given an additional 10-days’ time to strengthen their business proposals and resubmit these to their LGA.

LGAs will forward the revised business proposals to the Regional Secretariats, who will either recommend or reject these.

EQUIP-T Regional Office will provide support to the LGA and Regional Secretariat during all stages of this feedback process.

V. Announcing and registering the Grant:

Regional Secretariats formally announce the schools that will be provided with the IGA Grant. The respective DEOs will communicate the results to the schools and return the successful proposals and associated scoring to them. The DEO and REO will retain one copy of the IGA proposal to be used to monitor IGA activities and spending.

Regional Secretariats will also issue a letter to all schools that have not been qualified. The proposal will be returned to the school with


associated scoring. Schools may decide to continue implementation of the IGA proposals, though the (start-up) funding will not be provided by EQUIP-T. Funding from other sources could be sought for implementation of the rejected IGA proposals.

Regional Secretariats will provide a copy of the final results to EQUIP-T highlighting all schools that have qualified and will receive the IGA grants.

The list of all qualified schools will also be announced in the local newspaper (list of qualified school on appendix 1)

VI. Training on Grant implementation:

Before releasing the Grant, WEO/WEC will organise training for the School Committees of the selected schools on how to manage and implement the Grant.

This training will be based on the Grant Management and Implementation Manual and related monitoring guidelines and tools issued by the Programme.

VII. Releasing the Grant:

All IGA Grants with a maximum amount of TZS. 1.5 million. Will be transferred as a one-time payment from the LGAs to the school Capitation Grant Bank Account

VIII. Monitoring the Grant:

Monitoring the IGA Grant will be done at various levels, including:

o School Committee monitoring o WEO monitoring o LGA monitoring o Regional Secretariat monitoring o EQUIP-Tanzania monitoring

Roles and responsibilities for these stakeholders are elaborated upon in chapter 8.


4 Activities supported and not supported by the IGA Grant

The IGA grant will be used to support activities highlighted in the school business proposals and related budgets. If any major changes occur to the approved activities and budget they require approval from the School Committee and DEO office.

Expenses on qualified IGA business proposals may include:

√ Purchase of materials or equipment for the IGA;

√ Procurement of services for the IGA;

√ Development of infrastructure related to the IGA;

√ Purchase of inputs like seeds, fertiliser or livestock and pesticides;

√ Purchase of stock, like supplies for shops, and;

√ Any other expenses as reflected in the IGA business proposals.

Profit from the IGA may be re-invested in the IGA or spent on any item approved by the School Committee, in line with the school development plans (SDP).

The IGA grant should not be used for anything that is not supporting the development or operation of the IGA, such as the following activities:

No payments related to activities that are not part of the recommended IGA business proposals, unless agreed by the School Committee and DEO Office;

No payments that have not followed the payment process as described in chapter 5B;

No purchase of school or academic supplies not directly supporting the IGA, and;

No payments or gifts to teachers, District officers, school staff, Ward Education Officer (WEO) and other government officials.


5 How to release and use the IGA grant

Once schools received the information from the LGAs that their business proposals have been recommended for the IGA grant (Appendix 1), the following are the steps that schools should follow:

A. Releasing the Grant from LGAs to Schools:

i. The Head Teacher shall complete a Funds Request Form (Appendix 2A) requesting for the full amount of funding (in most cases the max. amount of TZS. 1.5 mln.). This Fund Request Form will also need to be signed by the SC Chairperson before forwarding to the DEO.

ii. The DEO will sign the Fund Request Form to approve the funds.

iii. The DEO Office will transfer the full IGA amount to the school Capitation Grant Bank Account.

B. Using the IGA Grant by Schools:

i. The School Committee (SC) will report on progress and spending of the activities financed through the IGA Grant through the Quarterly SC meetings. It is advised for the WEO to participate in these meetings as an observer.

ii. During these meetings, the SC will also present on the upcoming IGA

activities and related budget for the next quarter. These activities and budget will follow the IGA business proposal. If not, the proposed activities and budget require approval from the SC and DEO office.

iii. The SC Chairperson will endorse proposed activities and approve

the IGA funding request. All proposed IGA activities and spending shall be recorded in the meeting minutes of the SC meetings.

iv. Based on the approved activities and budget for the IGA activities

for the next quarter, the Head Teacher shall complete a Fund Request Form (sample attached in Appendix 2B).

v. The SC Chairperson will sign the Fund Request Form to approve

the funds.


vi. The Head Teacher/ teacher in charge of school finances will then

prepare a payment voucher and a cheque and get them signed by the Chairperson of the School Committee;

vii. The Head Teacher/teacher in charge of school finances will cash the

cheque and process payments to suppliers or service providers and obtain receipts/ tax invoices;

viii. The Head Teacher/teacher in charge of school finances will file and

keep the payment supporting documents, including the petty cash vouchers, fund request forms, SC meeting minutes, and receipts/ tax invoices in a chronological order.

6 Record keeping for the IGA grant

The Head Teacher/ teacher in charge of school finances will maintain the following records on receipts and use of the IGA grant:

i. A Separate Cashbook: for recording of both Income and Expenditure. As pre-printed cashbooks are available, each school is expected to purchase the cashbook from stationary shops. A sample of the recommended Cashbook is attached in appendix 3, and;

ii. Quarterly Bank Reconciliations: this will require the Head Teacher to obtain hard copies of bank statements on a quarterly basis to be reconciled with the Cashbook. A template of the Bank Reconciliation Statement is attached in appendix 4.

7 Reporting for the IGA grant

The following shall be the reporting procedure for the IGA grant:

i. At the end of each quarter, the Head Teacher will complete the Quarterly School Financial Report attached as appendix 5. This includes information on budgeted amounts and actual income/expenditure for the IGA Grant. The Quarterly Bank Reconciliation Statement for IGA shall be attached to the Report.


ii. The SC Chairperson will sign the “remarks column” against IGA activities to certify the reported goods and services have been received, quality is acceptable, and expenditure is correct.

iii. The Head Teacher shall forward the Quarterly School Financial Report to the SC Chairperson and later on to WEO for review.

iv. WEO will forward the Quarterly School Financial Report to the DEO for approval and return a copy to the Head Teacher for record keeping and learning.

It is important that schools convene quarterly meetings. During these meetings, the income and expenditure of the IGA activities need to be discussed, administered and reported. For transparency reasons, the IGA project activities, expenditure, and income (profit) will also need to be displayed on the notice boards.

Any profit generated, will need to be used to improve the quality of education in the specific school. Use of this profit needs to be reported on. The profit can be used for either: (i) reinvestment to the IGA interventions, or; (ii) implementation of activities that are related to the School Development Plan, and approved by the School Committee.

8 Roles and responsibilities on managing the IGA Grant in Schools

When implementing the IGA Grant, the various stakeholders should perform the tasks as identified below in order to facilitate the effective and efficiency way of running Businesses at school:

1. School (Head Teacher, School Committee and PTP members)

Head Teacher / teacher in charge of school finance: o Request for the maximum allocated IGA grant (most cases

TZS 1.5 million.) to DEO Office, using the Fund Request Form, Appendix 2A.

o Timely completion of the quarterly school financial report. o Maintain an updated Cash Book and quarterly Bank

Reconciliation Statement. o Prepare meeting minutes of the quarterly school committee

meetings.


o Display IGA activities, expenditure, and profit on the school notice board. Also indicate how the IGA profit will be used (e.g. reinvest in IGA, or implementation of activities related to the school development plan).

o Responsible to proper record keeping, documentation and reporting on the progress of the school project

School Committee: o Ensure timely and quality implementation of the IGA Grant

following the business proposal. o Use IGA Grant in line with the procedures mentioned in

Chapter 5B. o Convene quarterly School Committee meetings. o Sign off on IGA activities mentioned in the quarterly school

financial report. o Analyse and approving the budget o Monitor and evaluate the progress

2. WEO role

Visit qualified schools together with LGA Trade Officer soon after

releasing the IGA grants to the schools. During this visit, support and train the School Committees on

how to use this Grant Management and Implementation Manual. Monitor the IGA activities during implementation (including the

processes to be followed as outlined in this Manual). Quarterly report and evaluate progression of IGA in school to the

district official Following the designed WEO monitoring tools

3. LGA role (DEO / LGA Trade Officer)

Sign off on the one-time IGA payment for recommended schools Visit qualified schools together with WEO soon after releasing the

IGA grants to the schools Provide advice on how to best implement the IGA activities from

a technical/marketing point of view Provide follow-up support on case to case basis (e.g. for those

schools lagging behind in implementation, fund disbursement, and/or making limited or no profit.)

Review and sign off on quarterly school reports and follow-up when necessary (through WEOs)


Coordinate exchange of experiences on IGA Grants among schools (e.g. through sharing best practices)

4. Regional Secretariat (REO/ Regional Trade /Cooperative Officer

Conduct monitoring visits as part of regular activities and review implementation of IGA status during these visits

Provide technical support to selected schools and follow-up on case by case basis.

Identify linkages between various IGA activities with the aim to add additional value to the District and Regional industries.

Provide oversight role of maintenance of the IGA grants in school

5. EQUIP-T (Regional Office / Fund Officers) Prepare the IGA Grant Management and Implementation Manual Provide training to WEOs on how to use this manual, with the

objective for WEOs to train and support School Committees with effective implementation of the IGA Grant.

Conduct regular monitor and support visits to Regional Secretariats, LGAs, and schools, to verify IGA Grant implementation progress.


Appendix 1 - List of schools Approved for IGA Grant funding The following schools have submitted IGA proposals, and have been assessed by LGAs IGA trainers in accordance with IGA guidance criteria. These schools have been assessed as successful in their applications and therefore eligible for IGA Grant from EQUIP Tanzania: District Name: …………………………………………..

Checked by: DEO’s Name …………………………………..…………………. Signature ………………………………………… Telephone number.................................................................. Date ………………………………………………. Approved by DEO’s Name ………………………………………………………………... Signature ………………………….. Telephone number.......................................................................... Date ………………………………..

Name of School

Ward Proposed Project Review Score

Mature period of the Business

Head teachers Signature


Appendix 2A - Funds Request Form for transferring the IGA Grant to the school account

After receiving a letter from the Regional Secretariat indicating that your school has been recommended for the IGA Grant, the following Fund Request Form should be filled by the Head Teacher / person in charge of school finance, and sent to the DEO Office to request transferring the full IGA Grant to the school capitation Grant Bank Account. This form should be filled in duplicate

School Details:

School name …………………………………………………..…………

Village ……………………….…..…Ward ………………………….......

District……………………………...Region ……………………………

Amount Requested:

Amount requested (TZS)…………………………………………………

School Account Number……………………………………………………………

Requested by: Head Teacher and School Committee Chairperson

Telephone number Head Teacher................................................ Signature Head Teacher……………..

Telephone number School Committee Chairperson ............. Signature SC Chairperson……………..

Date: …….…/…../………….

Approved by: District Education Officer (DEO)

Telephone number DEO.................................................................. Signature DEO ……………………….

Date: …….…/…../………….


Appendix 2B - Funds Request Form for IGA Grant implementation by schools

The following Funds Request Form should be filled by the Head Teacher / person in charge of school finance, and sent to the Chairperson of the School Committee to certify that the planned IGA interventions have been approved. The fund request form should be prepared together with payment voucher and the cheque for approval and endorsement by the Chairperson of the School Committee. This form should be filled in duplicate

School Details:

School name …………………………………………………..…………

Village ……………………….…..…Ward ………………………….......

District……………………………...Region ……………………………

Amount Requested:

Remaining IGA grant balance to date (TZS)……………………………

Amount requested (TZS)…………………………………………………

Cheque Number……………………………………………………………

Requested by: Head Teacher

Telephone number .................................................................................... Signature………..

Date: …….…/…../………….

Approved by: School Committee Chairperson

Telephone number .......................................................................................Signature ……….

Date: …….…/…../………….


Funds are requested to implement the following School Income Generation

Activities during this period: (indicate the reporting quarter)

Description of activities Number of units

Cost per unit

(TZS)

Total cost

(TZS) Income Generation Activities:

Grand Total


Appendix 3 - Cashbook Template

PRIMARY SCHOOL (name)

IGA GRANT CASHBOOK DEBIT SIDE (Revenue) CREDIT SIDE (Expenditure)

Date Particulars Amount

(Tshs)

Total

income

to date

(Tshs)

Date Particulars Amount

(Tshs)

Total

expenditure

to date

(Tshs)

Balance brought forward XX XX IGA business expenses

Repairs and maintenance

Procurements

Labour costs

XX

XX

XX

XX

XXX

XXXX

IGA Grant Fund request XX XXX Use of IGA income/profit

Debate clubs expenses

Exchange visits with other

schools

XX

XX

XXXXX

XXXXXX Other income received

IGA profit

XX

XX

XXXX

XXXXX

* Balance brought forward relates to total balance from the last page of the cashbook.


Appendix 4 - Quarterly Bank Reconciliation Statement Template

District …………….…………………………………………………..……………………….……………..…...

Ward………………………………………………………………………………………………..…………..…..

Name of school……………………………………………………………………………………….………....…

Name of bank …………….……………………………………………………….…………………………..…...

Account number ………………………………………………………………………..…….……………………..

Account name…………………………………………………………………………………………………………

Quarter (months and year)………………………………………………………………………………………..…

Balance per Bank Statement XXX

Description Date Particulars Amount

Add: (i) Uncredited Receipts (receipts in the cashbook not indicated in the bank statement)

Donations from community groups not yet banked XX

(ii) Unrecorded payments (payments indicated in the bank statement not recorded in the cashbook) Bank charges XX XX


Less: (i) Unpresented cheques (payments in the cashbook not indicated in the bank statement) XYZ Supplier XX

(ii) Unrecorded receipts (receipts indicated in the bank statement not recorded in the cashbook e.g. interest) Interest income XX (XX)

Expected balance as per cashbook XXX

Actual balance as per cashbook XXX

Difference -

Prepared by: Head Teacher …………………………………………. Telephone number ............................................................................................... Signature

……………………………………… Date: ………/………../……....

Verified by: School Committee Chairperson ……………………… Telephone number ...............................................................................................

Signature ……………………………………… Date: ………/………../……....

Approved by: Ward Education Coordinator ……………………….. Telephone number ...............................................................................................

Signature ……………………………………… Date: ………/………../……....


Appendix 5 - Quarterly school financial reporting template

District …………….………………………………………………………………………….………….

Ward………………………………………………………………………………………………...……

Name of the school …………….……………………………………………………………...……….

Reporting period…………………………………………………………………………………………

Attach copy of the Quarterly Bank Reconciliation Statement This form should be filled in duplicate Income Generated Expenditure Items Annual

budget

(TZS)

Funds received to

date

(TZS)

Total expenditure beginning of

quarter (TZS)

Expenditure for this

quarter

(TZS)

Total expenditure to date

(TZS)

Balance

(TZS)

Remarks

A B C (D = B + C) E = (A – D) DEVELOPMENT GRANT

Classrooms

Teachers’ houses

Major works

Latrines

Desks

SUB-TOTAL

CAPITATION GRANT


Income Generated Expenditure Items Annual budget

(TZS)

Funds received to

date

(TZS)


quarter (TZS)


quarter

(TZS)


(TZS)

Balance

(TZS)

Remarks

A B C (D = B + C) E = (A – D) Books

Teaching and learning

materials

Administration

Examinations

Minor works

SUB-TOTAL

IGA GRANT

IGA Activity costs

School development

activities

Example: Repair and

maintenance

Purchase of furniture

PTP related activities

Example: Exchange visits

Inter-class sports


Income Generated Expenditure Items Annual budget

(TZS)

Funds received to

date

(TZS)


quarter (TZS)


quarter

(TZS)


(TZS)

Balance

(TZS)

Remarks

A B C (D = B + C) E = (A – D) competitions

SUB-TOTAL

Total amount

Generated

GRAND TOTAL

Prepared by: Head Teacher ……………………………………………… Telephone number ...............................................................................................

Signature………………………………………. Date: ………/………../………

Verified by: School Committee Chairperson ………………………… Telephone number ...............................................................................................

Signature ……………………………………… Date: ………/………../………

Reviewed by: Ward Education Officer ………………………………… Telephone number ...............................................................................................

Signature ……………………………………… Date: ………/………../……

Reviewed by: District Education Officer …………………………… Telephone number ...............................................................................................

Signature ……………………………………… Date: ………/………../……


Appendix 6 - Annual Summary Performance and Expenditure Report

Description of planned activities Status of Implementation Annual Budget

(TZS)

Total Expenditure

(TZS)

School Development Activities

Sub-total (A)

PTP/ school club Related Activities

Sub-total (B)


Description of planned activities Status of Implementation Annual Budget

(TZS)

Total Expenditure

(TZS)

IGA Activities

Sub-total (C)

Grand Total (A + B+ C)

Prepared by: Head Teacher …………………………………………………… Telephone number .....................................................................

Signature ……………………………………… Date: ………/………../…………..

Verified by: School Committee Chairperson ……………………………Telephone number .....................................................................

Signature ……………………………………… Date: ………/………../…………..

Documents

Income Generation Activity (IGA) - EQUIP Tanzania · Parents and Communities to effectively manage and implement the Income Generation Activity (IGA) Grant, on intention of developing