KINGDOM OF LESOTHO - UNDP€¦ · LDG Operational Manual for Local Governments 4 The LDG is a key component of the DDP which is striv-ing to work with local Authorities (LAs) and

LDG Operational Manual for Local Governments

MINISTRY OF LOCAL GOVERNMENT, CHIEFTAINSHIP AND PARLIAMENTARY AFFAIRS

KINGDOM OF LESOTHO

EUROPEAN UNION

Deepening Decentralization Programme (DDP) “Strengthening Local Authorities for Sustainable Local Development”

May 2014

List of Content

FOREWORD............................................................................................................................................................................1List of Abbreviations..............................................................................................................................................................21.0 INTRODUCTION................................................................................................................................................................32.0 THE LOCAL DEVELOPMENT GRANT ...............................................................................................................................43.0 LDG ALLOCATION AND FUNDING ARRANGEMENTS...................................................................................................53.1 Annual Allocation...........................................................................................................................................................53.2 Horizontal Allocation across the Local Governments.................................................................................................54.0 CAPACITY BUILDING GRANT..........................................................................................................................................64.1 Eligibility and access criteria for Capacity Building Grant…………………………………..........................................64.2 Beneficiaries of the Capacity Building Grant………………………………………………..............................................64.3 Eligible areas and activities for Capacity Building Grant…………………………………............................................74.4 Procedures for spending the Capacity Building Grant…………………………….................................................7 - 94.5 Accountability for the Capacity Building Grant………………………………….................................................……105.0 INVESTMENT GRANT……..…………………………………………………......................................................…………….115.1 Eligibility for and access to the LDG………………………….............................................……………………………..125.2 Capital Grant…………………...………………………………..............................................................................…13 - 165.3 Inventory of LDG funded projects…………………………..............................................……………………………..…176.0 PERFORMANCE GRANTS.…………….....................................................…………………………………………………..176.1 Minimum Conditions……………..................................................…………………………………………………………...176.2 Performance Grants……………...............................................…………………………………………………………….186.3 Appeal Process…………………………................................................…………………………………………………….187.0 PLANNING AND BUDGETING………............................………….......................…………………………………………..197.1 Principles of Participatory Planning……………………..............................................………………………......…19 - 228.0 PROCUREMENT AND DISPOSAL OF ASSETS……………........................................................…………………………...228.1 Principles of Public Procurement …………………..............................................………………………………………..228.2 Procurement for DDP/LDG at National Level.…….............................................……………………………………….238.3 Procurement at LG Level……………………...............................................………………………………………………238.4 Procurement Planning……………………................................................…………………………………………………238.5 Procurement Implementation…………….............................................………………………………………………….248.6 Disposal of Assets procured using the LDG...............................................................................................................249.0 FINANCIAL MANAGEMENT, INTERNAL CONTROLS AND AUDIT……….....................................................…………..249.1 Administration of the LDG………………………………………………..............................................….………………..259.2 LDG Disbursement to LDG TO LGs…………………………................................................……………………………..259.3 LDG Accountability Requirements……………………….............................................………………………....…25 - 269.4 Bank Reconciliation Statement…………………………...............................................………………………………….279.5 Internal Control……………………………………………..................................................…………………………………279.6 Internal Audit……………………………………………….................................................…………………………………279.7 Identifying fraud…………………………………………….................................................……………………………..…279.8 Identifying Fraud..........................................................................................................................................................2810.0 MONITORING AND EVALUATION………………………..................................................……………………………….2910.1 Planning for Monitoring and Evaluation…………….............................................……………………………........…3010.2 Key areas to monitor and evaluate..................................................................................................................30 - 33Sample format: Education and Training Output/Outcome/Impact Monitoring Report............................................34Sample format: Environment.............................................................................................................................................35Sample format: Water........................................................................................................................................................36Sample format: Environment.............................................................................................................................................37Sample format: Public Works and Transport....................................................................................................................38Sample format: Water........................................................................................................................................................39Sample Format: Health and Social Welfare.....................................................................................................................40Sample format: Agriculture and Food Security................................................................................................................4111.0 ENVIRONMENT, NATURAL RESOURCE AND SOCIAL MANAGEMENT......................................................................4211.2 Screening of projects……………………………………………………….......................................................……42 - 4511.3 Main streaming environment and natural resources……………..............................................…………………….4512.0 INSTITUTIONAL ARRANGEMENTS.........................................................................................................................46 - 47


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FOREWORD


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I wish to inform you that the Ministry of Local Govern-ment, Chieftainship and Parliamentary Affairs (MoLG) received support from the European Union for imple-mentation of the Deepening Decentralization Pro-gramme (DDP) in partnership with the United Nations Development Programme (UNDP) and the United Nations Capital Development Fund (UNCDF). The to-tal funding is 8,880,000 Euros for a period of four years (2012 to 2016). The main purpose of the programme is to promote decentralized service delivery for social and economic growth through the development of transparent funding mechanisms and by improving the accountability of local authorities.

The provision of a Local Development Grant (LDG) un-der the DDP as a discretionary pilot resource is part of the efforts to build a sustainable process for funding service delivery at the local level. This offers an oppor-tunity to the Local Authorities to involve communities in prioritising development needs, facilitate local de-velopment planning and implementation of projects.

The LDG operational manual has been prepared by the MoLG in order to guide Local Governments (LGs) in the implementation, management and utilization of the Local Development Grant. This manual does not re-place the existing laws and regulations governing the operations of LGs. This manual is complementing the

laws and regulations to ensure successful implementa-tion of LDG to the satisfaction of the people/benefi-ciaries, Government and the Development Partners.

The accountability and reporting requirements in the manual are intended to aid MoLG keep track of what each LG is doing with the LDG. LGs which fail to com-ply with the provisions of this manual will be sanctioned while good performance will be rewarded.

It is my duty to call upon all the LGs to internalize this manual and comply with the requirements so as to make the implementation of LDG a success.

The MoLG is grateful to the DDP Technical Team for spearheading the process that resulted into the pro-duction of this Manual. Special appreciation to Ms. Jenifer Bukokhe Wakhungu (PhD), Technical Specialist, UNCDF and Mr. Hoolo Nyane – Programme Manager DDP, UNDP for drafting and consolidating the various inputs into the final product.

Mr. Ntai MakoetjeActing Principal SecretaryMinistry of Local Government, Chieftainship and Parlia-mentary Affairs

List of Content

CB Capacity BuildingCBG Capacity Building GrantCSO Civil Society OrganizationsDCS District Council SecretaryDDCC District Development and Co-ordination CommitteeDDP Deepening Decentralization ProgrammeDSA Daily Safari AllowanceEIA Environment Impact AssessmentESSF Environmental and Social Screening FormEU European UnionFY Financial YearHR Human ResourceLA Local AuthorityLDG Local Development Grant LG Local GovernmentLLDP Lesotho Local Development ProgrammeLPO Local Purchase OrderMC Minimum conditionsM&E Monitoring and EvaluationMoF Ministry of FinanceMoLG Ministry of Local Government, Chieftainship and Parliamentary AffairsMoPS Ministry of Public ServiceMoU Memorandum of UnderstandingMTEF Medium Term Expenditure FrameworkMTR Mid Term ReviewNES National Environment SecretariatNGOS Non-Governmental OrganizationsPAC Public Accounts CommitteePEM Public Expenditure ManagementPFM Public Financial ManagementPM Performance MeasuresTC Town ClerkTOR Terms of ReferenceUNCDF United Nations Capital Development FundUNDP United Nations Development Program


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1.0 INTRODUCTION


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The Government of Lesotho views an effective local government system as the most critical vehicle for ac-complishing its efforts towards decentralization. This is clearly elaborated in the recently approved Decen-tralization Policy 2014.

The Government in partnership with the United Na-tions Development Programme (UNDP), United Nations Capital Development Fund (UNCDF) and European Union (EU) has embarked on deepening decentraliza-tion processes, systems and procedures through a four year programme (2012 to 2016) whose development objective is to contribute to poverty reduction, pro-mote inclusive economic growth and entrench demo-cratic principles through improved decentralized gov-ernance. The total Project budget for the period is EUR 8,880,000.00 of which EUR 8,000,000.00 is from Europe-an Union and EUR 880,000.00 from UNCDF.

The DDP builds upon the achievements of its predeces-sor the Lesotho Local Development Programme (LLDP) and its contributions towards formalization of the na-tional framework for decentralization. Its main focus is to harness the strategic role of Local Authorities in

service delivery by improving systems and procedures for channeling development funding through Lo-cal Authorities, promoting accountability at the local level and building capacities of Line Ministries and Lo-cal Authorities to perform the decentralized functions. The main implementing partner is the Ministry of Local Government, Chieftainship and Parliamentary Affairs MoLG) in collaboration with the Ministry of Finance (MoF) and Ministry of Public Service (MoPS) to ensure smooth implementation of the programme compo-nents. The DDP outputs and activities are listed in Box 1

This Operational Manual has been prepared to guide the Local Governments in the use and management of the Local Development Grant (LDG), which is the en-gine for the Deepening Decentralization Programme (DDP). The Manual should be used in line with the LDG MoU signed between the MoLG, MoF, UNDP and UN-CDF, the basic principles and procedures that guide Local Government level public expenditure manage-ment (described in the Public Financial Management Act 2011, Financial Regulations 1973, Public Procure-ment Regulations 2007, and Local Government Act 1997 as amended).

BOX1

DDP Outputs and activities

Output 1: Improved development funding through local authorities. Activities:1.1 Finalize design of local development funding mechanism including the technical design, conditions, performance measures, etc.1.2 Support adoption of the new system by ensuring that Government counterparts (MoF and MoLG) understand and buy into the concept and are capacitated to adopt the system.1.3 Operationalize the local development funding mechanism by providing technical training to councils to operationalize the system and processes. 1.4 Operate the local development funding mechanism once set up.

Output 2: Decentralization and accountability systems at local level promoted.Activities:2.1. Conduct decentralization assessment and produce inception report2.2. Design the decentralization model (based on findings) including a solid programme of assistance to councils to decentralize and rollout decentralization.2.3 Develop a framework for linking up of inter-governmental transfer system and IFMIS for implementation.

Output 3: Capacities of line ministries to decentralize functions and local authorities enhanced.Activities:3.1 Sensitization and strengthened administrative systems to facilitate the process of decentralization3.2 Facilitate a Human Resource infrastructure, functions and systems to implement the process of decentralization

2.0 THE LOCAL DEVELOPMENT GRANT (LDG)


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The LDG is a key component of the DDP which is striv-ing to work with local Authorities (LAs) and the MoLG in order to facilitate community access to basic servic-es and promote accountable and transparent local governments. Local Authorities are mandated by the Local Government Act 1997 as amended to deliver services indicated in the first and second schedules; however, the LAs have limited discretionary power over resources.

The LDG is a discretionary grant and non-sector spe-cific. It aims to help local authorities to successfully un-dertake their mandate in order to improve the living situation of the population, thus contributing to over-all development and good governance. The LDG is intended for LGs to access funds for investment in lo-cal development and poverty reduction, particularly related to infrastructure improvements and based on their development plans. This will contribute to citizens having more trust in LAs as they respond to the core

needs of community members. The expectation is to see the LDG fully mainstreamed in the Government budget and in the Medium Term Expenditure Frame-work (MTEF).

The main purpose of the LDG is to improve public ser-vice delivery through demonstrating and testing im-proved Public Financial Management (PFM)/Public Expenditure Management (PEM) procedures and sys-tems.

The Specific objectives of the Local Development Grant are to:

a) To develop the capacity of Local Authorities to plan, budget and provide resources for implementa-tion of local development and basic service delivery;

b) To Pilot a discretionary capital fiscal transfer system from central to local level;

3.0 LDG ALLOCATION AND FUNDING ARRANGEMENTS


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c)To act as incentive for decentralisation reforms as the lessons and experiences are documented and systematically fed into the reform process to improve service delivery.

There are three components of the Grant i.e. LDG which is based on meeting minimum conditions, Ca-pacity building grant and Performance grant as an incentive. These will be explained later in the manual.

3.1 Annual LDG AllocationThe total amount available for the LDG every year will be proposed by the DDP Programme Technical Com-mittee. This will be approved and announced by the DDP Programme Steering Committee at the beginning of every calendar year.

• The allocated amount will be included in the annual budget of the Ministry of Finance and an indicative fig-ure will be announced to the LGs.

• The LDG is allocated across LAs based on meet-ing the Minimum Conditions and incentive for perfor-mance. What this means is that the way the LDG is al-located aims to be fair to all LGs, but at the same time allows for rewarding LAs that perform well in the use and management of the LDG.

The actual allocation to each LG will depend on: a) Compliance with the minimum conditions;b) The transparent formulae applied for horizontal allocation across the LGs;c) The fulfilment of the monthly, quarterly and annual requirements for reporting and accountability;d) The absorption capacity i.e. timely use and accountability of funds released.

3.2 Horizontal Allocation across the Local GovernmentsThe largest share of the LDG should be used for small-scale capital investments in service delivery and small scale infrastructure, including up-grading, rehabilita-tion of existing structures and construction of new fa-cilities, roads, markets, classrooms, etc. Experiences have shown a clear need to allow LGs to use a small part of the development grant on investment servicing costs related to planning, project appraisal, monitor-ing and supervision to ensure proper preparation and implementation of projects.

Basic FormulaA simple and transparent formula has been proposed: population (45%), land area (15%) and poverty count (40%). This will be subject to review depending on avail-ability and reliability of data to support the allocation.

The 100% LDG allocation that is distributed across LGs based on the formulae will further be divided into the Capacity building Grant (20%) and the Investment Grant (80%)

4.0 CAPACITY BUILDING GRANT (CBG)


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Twenty Percent (20%) of the LDG will be divided up among the LGs using the proposed formulae to fund the capacity development activities to enhance ef-fective implementation of capital investments.

Capacity building can be defined in various ways. For the purposes of this manual, Capacity building refers to the process of developing and improving upon the ability and capability of the LGs to efficiently deliver services that fall within their mandate and to inter-pret and implement policies. This includes short-term skills-building and training (not more than 9 months) required for promotion or confirmation in a job for im-proved performance by the Local Government.

Capacities in LGs change with the tasks at hand, pol-icy directions and new staff. Evidently, capacity gaps do manifest themselves in LG system as well as in other LG development stakeholders. In either case, the gaps

have a direct bearing on LG operations and service delivery.

The Capacity Building Grant is being made available:a) In recognition of performance gaps that LGs have in certain areas. b) To enable LGs to meet some of their own capac-ity building needs.c) To allow Local Authorities use their discretion to identify and address capacity gaps.d) To enable Local Authorities to meet the capac-ity building needs of key partners within the LG who work closely with the LG to improve people’s liveli-hoods.

The CBG is intended to enhance the capacity of LGs to fulfill their mandates through meeting the capacity building needs of individuals as well as LGs. LGs shall prepare a comprehensive, integrated three-year ca-pacity building plan incorporating Capacity Building needs for Community Councils in its jurisdiction.

4.1 Eligibility and Access Criteria for CBGThe CBG remains available even for LGs that do not

qualify for the LDG as long as minimum conditions for the use of the CBG are in place. The minimum require-ments for accessing the CBG are:

a) Existence of the three year Capacity Building plan; and b) Accountability for the utilization of the previous CBG releases.

4.2 Beneficiaries of the Capacity Building GrantCapacity building needs and programmes should be linked to performance enhancement. The perfor-mance of a given LG depends on the efficiency of its staff and other key stakeholders operating within the LG. The capacity of statutory organs, Civil Society Or-ganisations (CSOs) and Private Sector Organisations is essential.

Therefore, the following categories of actors can ben-efit from the Capacity Building Grant: a) Local Government staff: in order to enhance their efficiency to deliver against key outputs.

b) Local Councillors (political leadership): to equip them with planning, budgeting, monitoring and other critical skills.

c) Statutory bodies such as the Tender Board, the LG Service Commission, the Public Accounts Committee (PAC): to equip them with functional capacities for procurement, recruitment and overseeing duties.

d) Private Contractors and consultants: to equip them with skills on how to prepare proposals, quotations, execution of projects/assignments, report writing and general project delivery.

e) Service Providers such as CSOs including Commu-nity Groups: to equip them with skills so as to effective-ly supplement Local Government efforts and provide peer monitoring.

CBG category Maximum Allocationsa) Career Development Courses Maximum of 20% of the CBGb) Skills development courses for staff, councilors, statutory committees/bodies

Minimum of 40% of the CBG

c) Discretionary Capacity Building Opportunities Maximum of 40% of the CBG


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Career Development (maximum of up to 20% of total CBG)Under “Career Development” the CBG will be used for only courses that:a) Will lead to an officer being substantively appointed and promoted within the LGs;b) Are provided in Lesotho; and c) Are tenable over a maximum of 9 months (one aca-demic year)

Skills Development (maximum of up to 40% of total CBG)Under the skills development the CBG provided to LGs will be used within a menu of specific courses, the tailor made courses using private capacity building provid-ers. The CBG will be restricted to non-sectoral training and skills development.

The LGs should provide training according to the three-year Capacity building plan. Emphasis should be placed on gaining access to a broader range of training personnel and bringing together personnel from different LGs in a training context can contribute to the sharing of experiences and ideas and lay the-basis for future inter-governmental co-operation and collaboration.

Discretionary Capacity Building Activities (maximum of up to 40% of total CBG)The funds under this CB category may be spent on ca-pacity building activities not covered by Career and Skills Development Grants above but are included in the LG capacity building plan.

Indicative activities include; a) Training (Workshops, Seminars, Symposia)b) Attachments (and secondments) whereby particu-lar individuals are temporarily availed with the oppor-tunity to be part of an organisation/system with the purpose of exposure to certain practices.c) Understudies whereby one learns the part of anoth-er so as to be able to deputise or take his/her place at short notice.

d) Study tours/Visits of observation to learning/demon-stration sitese) Performance reviewsf) Short term assessments/researches

4.4 Procedures for expending the Capacity Building GrantThe CBG shall be expended in accordance with the general procedures spelt out in the Financial Regula-tions 1973.

If the capacity building activity is to be undertaken by the LG technical staff, the following procedures shall apply: a) Design and submission of a training program with all the basic details to Accounting Officer b) Assembling of facilitators/trainersc) Preparation of training materials d) Implementation of the activity/training e) Preparation of a report with all the required details f) Submission of acceptable accountability

If on the other hand, the assignment is to be executed by external person to the Local Government e.g. a consultant, the following shall apply: a) The LG shall detail the taskb) Terms of Reference are made available to prospec-tive facilitators/consultantsc) Facilitators prepare and submit technical and finan-cial proposal detailing how they intend to do the task and at what cost.d) The LG shall constitute a technical evaluation com-mittee to evaluate the proposals and select the most suitable bidder/consultant in conformity with the Pro-curement Regulations.e) The LG shall prepare the contractf) The selected facilitator/consultant shall sign a con-tract with the LG.g) Trainers assemble and/or design training materials and implement the training h) Trainer/Consultant compile appropriate reports in-cluding copies of training material, instruments and hand-outs to participants and evaluation form.

4.3 Eligible areas and activities for the Capacity Building GrantCapacity building Grant is meant for functional rather than conceptual interventions, specifically in the aspects of Human Resource Development, Technical Support and Institutional Support.


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The format of the Capacity Building Plan is presented below. NAME OF THE LOCAL GOVERNMENT ---------------------------------------------CAPACITY BUILDING PLAN FOR THE PERIOD-----DATE: MM / YY

TopicObjectives/Purpose

Participants Category (C) Number (N

Type of activity

Key areas

Resource Persons

Duration Cost Remarks

C NM F

Career Development

Skills development

Discretionary CBG

Total

Prepared by Approved by

------------------------------------ ------------------------(name & signature) DCS/TC (name & signature) Date………………………… Date & stamp-------------


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Sample format for the Capacity Building Progress Report

LOCAL GOVERNMENT ---------------------------------------------CAPACITY BUILDING PROGRESS REPORT FOR THE PERIOD-----DATE: MM/YY TopicObjectives & Purpose

ParticipantsCategory (C)Number (N)

Type of activity

Key ar-easR e c o m -menda-tions

R e -s o u r c e Persons

Duration Cost(M)

Remarks

C NF M

Monitoring and Evaluation

1. To train 10 District staff on how to effec-tively monitor and evaluate the projects in the 1st quarter of FY 2014/15

D i s t r i c t Planning unit

6 4 Workshop W h y m o n i t o r projects?W h o s h o u l d monitor?R e c o m -m e n -d a t i o n : S i m p l i f y the M&E forms

Econom-ic Plan-ner and H u m a n Resource Manage

1st –6th June 2014

5,000 R e s i d e n t i a l workshop. Par-ticipants were equipped with basic M&E skills. M&E forms dis-cussed and dis-tributed. Par-ticipants were able to fill the forms on their own.

Total

Prepared by Approved by

------------------------------------ ----------------------(name & signature DCS/TC (name & signature)

Date------------------------------ Date & stamp--------------


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CBG Financial Summary Sheet

Ministry of Local Government, Chieftainship and Parliamentary AffairsCBG Financial Summary Sheet

(a) District/Municipality______________________________________(b) Program: Capacity Building Grant(c) For the period ________________to____________________(d) Currency: (Maluti)(i) (ii) (iii) (iv) (v)

Period Amount Annual Budget Expenditures during the reporting period

Available Balance

(a) Opening Balance(b) Advance Received

c) Available Funds

= (a) + (b)

Expenditure by Description1. Tailored Training & skills Development (40%)2. Career Development (max 20%)3. Discretionary CB Activities (40%) 4. Others e.g. bank charges

(e) Total Expenditure(f) Closing Balance(g) Outstanding Obligations(h) Planned Expenditure(i) Total requirements(j) Less Closing Balance(k) Advance Requested

add 1 to4=(c) - (e)

= (g) + (h)= (f)= (g) - (f

4.5 Accountability for the Capacity Building Grant by LGsLGs are required to account for all the advances of the CBG that is remitted to them. A satisfactory ac-countability acts as a trigger for subsequent releases to the respective LG. Therefore, the following constitute

the mandatory accountability requirements:a) Duly filled financial summary sheet b) Capacity Building progress report c) Bank statementd) Bank Reconciliation sheet e) Capacity Building Plan for the next quarter

Prepared by Certified by Accounting OfficerDate Date_________


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The Form on the previous page must be filled based on the following Guidelines:a) The Name of District/Municipality.b) The programme: DDP - CBGc) The period for which the accountability is being doned) Currency in which the accountability is being done e) Opening balance, this is the cashbook at the be-ginning of the period one is accounting for. If the ac-countability is a proceeding one, this should have been the closing balance of the former one.f) Advances received should only be the amounts re-ceived from the MoF/Central Bank of Lesotho.g) Co-financing; any co-financing banked on the ac-count should feature in this subsection h) Available funds should be the sum of (a) + (b) +(c)i) Total Expenditure is the sum of items 1 to 4j) Closing balance is the difference between available funds and total expenditure. (d)-(e) which should be reconciled with the balance in the cashbook.k) Outstanding Obligations represent the financial commitments such as outstanding contractual com-mitments entered into and not yet fully paid for.l) Planned expenditure represents the amount the LG intends to spend in the coming quarter. These should include new activities for the period and the old activi-ties that the LG did not accomplish in the past quarter.m) Total Requirements are the sum of the obligations and planned expenditure, (g)+(h)

n) Less closing balance, that is (f)o) Advance requested, this represents the total needs or requirements less the amount on the account, that is (g)-(f). Note: LGs accountabilities should be ready by the 15th day of the last month of the quarter.

DCS/TC should submit a consolidated accountability to MoLG by the 30th day of the last month of the quar-ter.

The DCS/TC however, for audit purposes at a later time, should keep the full range of supporting docu-ments at the LG level.

Responsibility for managing the Capacity Building Grant in LGsThe responsible officer for the Capacity Building Grant shall be the DCS/TC in case of the district/Municipal council respectively. However, the District/Municipality shall plan and man-age its funds using the technical expertise of the Hu-man Resource Manager responsible for human re-source development. This person shall be assigned the responsibility to implement and coordinate capacity building activities.

Eighty percent (80%) of the LDG will be distributed to LGs that meet the Minimum Conditions using the pro-posed formulae.

5.1 Eligibility for and Access to the LDG

The 100% investment Grant (which is the 80% of the LDG) will further be divided as follows:RetoolingAll LGs are eligible to receive LDG provided they meet the minimum conditions drawn from the provisions of the Public Financial Management Act 2011, Finan-cial Regulations 1973, Public Procurement Regulations 2007, Local Government Act 1997 as amended and all conditions specific to the program.

Five percent (5%) of the LG investment grant will be allocated to retooling in support of the LDG projects.

Retooling funds will be used by the LGs to procure equipment and tools to facilitate the functionality of the officials in terms of skills. However, LGs which would wish to procure computers should first obtain technical advice from the MoLG with respect to the specifica-tion of the computers. This is to avoid buying obsolete computers, which cannot run current programmes. This can also be used for renovation or upgrading ad-ministration buildings and houses for core staff.This will help ensure that a basic minimum level of facilities are in place for the core administration and the core staff to ensure a conducive work environment for effec-tive planning, budgeting, execution/ implementation and M&E, and to protect the capacity building efforts made under other parts of the program.

5.0 INVESTMENT GRANT


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Five percent (5%) of the investment grant will be al-located to Project Monitoring. Monitoring funds should only be used to fund activities scheduled under the M&E section of the approved LG Development Plan. At the end of every monitoring activity, a LG will pre-

pare a monitoring report following the M&E reporting formats. This report will be the source of information when preparing the quarterly physical progress reports and the quarterly accountability report of the LDG.

Project Monitoring

Example of a LG Quarterly and Annual M&E report formatActivity monitored: Location Quarter Findings/Status RemarksExample: 1 Road con-struction inclusive of the implementation of the related environment miti-gation measures

2 villages (indicate the names of the vil-lages and where the road can be found)

1st quarter E.g. 5 kilometres of road opened; 0.3 km. swamp raised, 5 culverts fixed; de-stroyed grass and trees replanted

Example: Desilt the drains to allow flow of water; control soil erosion of the road

Example2Construction of a valley dam and implementation of related environment mitigation measures

1 village (indicate the name of the vil-lage)

1st quarter E.g. Site restored by replanting trees (20 trees) & grass around and at the edge of the dam

Example: Control soil erosion

Five percent (5%) of the investment grant will be al-located to investment servicing. Investment servicing costs can be used for pre-design facilitation and tech-nical advice, surveys, design and costing of invest-ments, Environment Impact Assessment (screening) of projects while in the field at environment review level (not full EIA which requires a Consultant certified by the National Environment Secretariat (NES), construc-tion supervision, cost of transport hire for materials and preparation of detailed physical plans (not structure plans). Detailed guidelines for the use of the invest-ment servicing costs are provided below.

Items of Expenditure for Investment Servicing Costs

a) Pre-design facilitation and technical advice: This could include provision of assistance to councils in ar-eas of community facilitation and participatory plan-ning being offered by the technical departments or hired consultants. Payments to the district/municipal technical staff would be paid off the district/municipal LDG allocation.

b) Surveys, design and costing of investments: This could include surveying proposed project areas, prep-aration of designs and cost estimates for projects to the level of completed tender documents. This could be done by the district/municipal technical depart-ments or consultants hired by either the district/Mu-nicipal. The payments would be made from the LDG allocation for the Local Government, which owns the investments.

c) Construction and other technical supervision: This could cover the supervision of construction work on projects from inception to project handover. It could be done by the District/Municipal technical depart-ments or hired consultants, but should be done against a clear supervision plan and a documented agree-ment.

d) Supervision of the implementation of environment mitigation measures: The District/Municipal Environ-ment Focal Point Person may use investment service cost to supervise the implementation of the environ-ment mitigation measures.

Investment Servicing


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e) Costs of transport hire for materials: The LG could use part of the fund to cover transport costs for materials for those projects where contractors are providing only labour, or where community contributions entail sup-plying construction materials to the construction sites.

f) Preparation of detailed plans: The LG could use part of the grant to meet expenses associated with prepar-ing the detailed plans for urban areas (please note that these funds will not be used to prepare structure plans).

Note:The payments for pre-design facilitation, technical ad-vice and supervision to the district/municipal technical staff could be done on a project by project basis or on a “retainer” agreement, which may be signed by the two parties for a specified period of time.

5.2 Capital GrantEighty five percent (85%) of the investment grant will be allocated to investments. The LDG investments will be derived from the approved LG annual work plans. This is also guided by the assignment of functions to the Local Authorities in the first and second schedule of the Local Government Act, 1997 as amended and the objectives of the LDG, which are: to improve PEM/PFM systems, procedures and practices, provide funds for small scale investments in needed infrastructure and service delivery according to local needs.

The first and second schedule provides the legisla-tive responsibilities of the Local Authorities; a range of statutory and service delivery functions. In the event that a LG used the LDG to implement activities that are not acceptable, the LG will be required to refund the

grant or cease in future allocation until the case has been rectified.

The service packages provided below are not exhaus-tive. Other projects can be funded as long as they are within the approved annual LG plan and budget, fol-low the principles in the allowed list and are within the legal framework for LG assignments.

It is important that the LG has ensured agreements and/or budget provisions for the operational and maintenance implications of the structures established prior to the start of every project with future cost impli-cations, i.e. clear agreements on who is responsible for the maintenance of a class-room after it is completed, and/ or of a market place. Questions to be answered before the final approval of projects are: who will take care of the required staff in place? Who will cater for current maintenance in terms of e.g. maintenance of the structures?, who will pay for water, electricity etc.? and how will it all be funded over the coming 10-15 years?

LGs will deliver services in conformity with the standards as provided in the laws and regulations. For instance im-plementation of selected activities/investments should be guided by the service delivery packages (SDPs) from the Line Ministries. SDPs are components and ele-ments which make a facility/service fully functional. For example, a classroom to be fully functional (apart from teachers and scholastic materials), it must have pupils’ desks, teachers ‘desks & chairs, blackboards, water and sanitation as well as teachers houses. Where any of these are missing, LGs should consider allocating LDG to the missing components (the new project will be made of missing components).


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Indicative List of activitiesSector LDG can be used for the following LDG cannot be used

for the following Agriculture and Food Security

• Communal small dams for livestock watering with a watering trough or a cattle crush• Establishing commodity outlet centres for bulking, value addition, grad-ing, packaging and branding of farmer produce including appropriate small milk cooling plants• Communal cattle dips• Group marketing facilities such as storage• Provision of foundation seeds for improved crop varieties to farmer groups within communities• Small scale irrigation facilities for communal use• Storage and food processing facilities• Bio-energy development• Provision of foundation stocking materials of improved breeds of live-stock (including poultry) to farmer groups within communities• Provision of support for community based colony rearing for apiculture development• Information centres• Fisheries landing sites• Support to community hatcheries for fish fry and fingerlings• Fish drying kiln• Communal nurseries• Provision of support community based multiplication of planting and stocking materials• School gardens• Establishing information centres to enhance information flow (market and other general information)• Vector control• Mini district agriculture development centre• Slaughter houses/slabs• Valley tanks• Agriculture laboratory

Forestry and Land Reclama-tion

• Restoration of degraded wetlands• Flood protection• Tree Planting• Demarcation of wetland boundaries• Development of alternative use of wetlands•Demonstration of wetland edge gardening, apiary farming, cottage in-dustries from waste products such as cups from clay, crafts from papyrus, craft houses and community training centres, pottery groups.• Provision of walkways• Provision of eco-tourism

Education and Train-ing

• Primary schools• Pupils’ and teachers desks• Pupils and teachers toilets • Kitchen• Class rooms• Teachers chairs and tables• Teachers houses• Administration block/offices• Store• Adult education centres

• Secondary schools• Private schools


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Health and Social Wel-fare

• Primary Health Facilities• Toilets• Incinerators• Maternity Centres• Medical equipment• Staff/doctors houses• Furniture• Outpatient and inpatient blocks/wards• Vaccine refrigeration • Improved energy efficient stoves for sterilisation and cooking• Medical laboratory• Placenta pits• Operating theatre• Drug store• Mortuary• Solar energy• Revolving drug fund• Public Library• Notice boards

• Health education

P u b l i c works and Transport

• Gravel roads/ Rural access roads• Street lighting• Public Transport Parking yards• Roads side walks

• Heavy equipment and plant (Graders, Tractors and Vehi-cles)

P h y s i c a l P l a n n i n g and Urban D e v e l o p -ment

• Detailed planning

Water, San-itation and Waste Dis-posal

• Water supplies• Drainages• Water tanks• Public toilets and Urinals• Sewerage• Protection of wells, shallow wells/boreholes• Solid waste disposal points• Geographical survey before deciding on the location to establish the water yield• Feasibility of the site to identify pollution of the water source such as latrines, kraals, graves, flood plains, ponds, soil conditions and drainage pattern around the spring.• Water quality testing during the design stage of the water facility• A hedge/fence preferably a natural one• An apron and water collection bay• A soak pit for water taps, boreholes and shallow wells• A water harvesting system

• Street cleaning

Trade, In-dustry and co-opera-tives

• Commodity outlet centres for bulking; value addition; grading; pack-aging and branding of farmer produce including appropriate small milk cooling plants • Cottage industries from waste products such as cups from clay, crafts from papyrus, craft houses and community training centres, pottery groups• Market places, Solar energy


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Tourism, culture and Environ-ment

• Community tourism (community centres) • Inter-clan relations, • Culture, • Human rights dia-logue,

Administra-tion

LG Administration blocks (not more than 5% of the LDG) Daily Subsistence Al-lowance (DSA);Refreshments; andSalaries for regular staff.

This list will be reviewed at the end of each year by MoLG, guided by DDP Technical Team.

Triggers for LDG DisbursementThere are a number of triggers, which have to be com-plied with for each disbursement as indicated below:

a) A detailed annual work-plan and budget estimates have been elaborated and approved by the Council. Delays in the submission of the plan and estimate will mean that the LG will not qualify for the LDG during the time of assessment.

b) The DDP Steering Committee has received, re-viewed and approved the results of the independent annual assessment of MCs and PMs to determine the LGs that qualify to receive funding under the LDG. The MoLG has announced the results of the assessments to LGs.

c) The first release of LDG will be triggered by the ap-proved results of the MC.

d) A LG has submitted a request for release of funds, accompanied by its Annual Work Plan and Budget for the year to the MoLG.

e) Quarterly financial and a physical progress reports have been prepared and submitted to MoLG not lat-er than two weeks after the end of each quarter and not later than 3 months after the end of the financial year. The MoLG has checked, confirmed and certified all financial reports coming from the LG and submitted to UNDP/UNCDF and MoF. Quarterly reporting should take place even in cases where no new funds have been allocated to a LG and even if there is no spend-ing.

f) In order to receive the full transfers for a new cycle of the LDG, LGs will have to document (through report-

ing) that they have spent all funds received from the previous year on eligible expenditure and within their annual plan and estimate. However, if a LG has obli-gated the funds in terms of a completed procurement process, but projects are not yet fully implemented and funds are not yet disbursed, the LG can remain with these funds up to a limit of maximum 20 % of the sum of the grant carried forward from the previous cy-cle provided that these funds are committed. Funds, which are not spent and not obligated/committed in excess of this (within the allowed limits), will be deduct-ed in second release of the new LDG cycle

g) First release every FY will go out quickly based on the quarterly reports from last FY and provided that the MCs and triggers are complied with.

h) Subsequent transfer of funds to LGs whose reports have queries will be withheld until the queries have been satisfactorily resolved.

i) The Central Government contribution has been transferred directly to the respective Districts by the MoF and informed the DDP partners.

j) Every LG is required to compile and have an inven-tory of all the investments it has produced in a given FY to take stock of the amount of money disbursed under the programme and the investments it has been spent on.

5.3 Inventory of LDG funded ProjectsAt the end of a financial year, the Planning and Fi-nance Department will take inventory of all LDG fund-ed projects for submission to MoLG. A sample form is provided below:


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REPORT ON INVESTMENT INVENTORIES FOR FY ……………

a) ……………………………………… Name of the Local Governmentb) Project title…………………………………….LG Sector P r o j e c t

d e s c r i p -tion

BudgetActual spent Start date Complete

Yes/noDate of com-pletion

Remarks

LDG Others

Total

Signed (name & signature)…………………………………………….Date…………………Finance Manager

Signature (name and signature)…………………………………………Date………………….(DCS/Town Clerk)

Stamp…………………………………….

6.1 Minimum ConditionsIn order to access the LDG, LGs have to comply with all the minimum conditions defined in the National As-sessment Guideline. These are put in place to safe-guard the use of public funds and to reduce the fiduci-ary risks, ensure that sufficient absorption capacity is available in the recipient LG and introduce stronger incentives continuously to strengthen performance in pertinent areas such as planning, budgeting, account-ing, internal control, procurement and governance.

The requirements in the minimum conditions will be gradually increased over time. In the first year of the assessment, LGs will be assessed on only 3 indicators namely;

• District Annual Work plan for the current FY approved by council.• Complete Final Accounts for the previous FY pro-duced and submitted to the MoLG. Within the given time (3months after the end of the FY). • Fulltime DCS, Finance Manager, HR Manager, Princi-pal Technical Officer (engineer), Procurement officer, and Administration Manager with written job descrip-tionsDuring the second year, three more indicators will be added namely;• District council in place and have met monthly in the

current FY. • Final accounts for the previous FY audited and not qualified (if not the previous FY, then the latest but not more than 2 years back).• LDG cash book establishedIn the third year of the LDG, four additional indicators will be introduced namely;

• Existence of a functional District Procurement Office.• Internal Audit function operational. • Annual Capacity Building Plan in place and ap-proved by council. • The District Local revenue collection has not de-creased in nominal figures from previous FYLGs will be supported from the DDP/LDG in terms of capacity building, technical assistance and training to enable them to address the identified gaps and weak-nesses.

All minimum conditions have to be complied with dur-ing the time of assessment, and there is generally, ex-cept in the rare and well defined cases of timely ap-peals, no room for a “second” chance.

The detailed information about the scoring of Mini-mum Conditions is elaborated in the LG LDG Training Handbook and the Guideline for National Assessment.

6.0 PERFORMANCE GRANT


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6.2 Performance MeasuresAn element of performance will be incorporated into the LDG allocation from the second Assessment of Minimum Conditions to improve performance in core functional areas namely; (i) Functioning of District Council and implementation of the Annual work plan (ii) Financial Management and Internal Audit (iii) Local Revenue Performance (iv) Communication, Transpar-ency and accountability to the Public (v) Staff func-tional capacity and monitoring. By introducing incen-tives to improve performance, the PFM/PEM systems, procedures and practices at the local level will be im-proved.

Twenty percent (20 %) additional allocations will be giv-en to the LGs based upon their weighted performance scores. This means that LGs that have performed well in the past year will be rewarded with a greater pro-portion of the 20% for the following year (i.e. 100% full LDG plus 20% rewards).

The twenty percent (20%) will be divided as follows:a) One percent (1%) of the performance grant will be allocated to administrative support.b) Two percent (2%) of the performance grant will be allocated to basic capacity development.c) Seventeen percent (17%) of the performance grant will be allocated to Capital Investment

Six indicators of performance measures will be intro-duced during the second assessment of minimum con-ditions. These are listed below:

• Regular meeting of District council in the previous FY• Level of Gender responsiveness of LDG sponsored projects. Annual budget reflects budgetary alloca-tions for gender specific interventions to address gen-der issues identified during the planning, monitoring and mentoring• Quarterly financial and narrative Reports for the previous FY prepared and submitted to MoLG• Posting of the Indicative Planning Figures (IPF) and approved projects of LGs for the current FY at the re-spective District headquarters and other public plac-es such as churches, mosques, markets etc.• Marking completed LDG projects, LG name, DDP and year of completion.• Evidence that the district technical staff have been

visiting the Urban/community councils for mentoring purposes.

Three indicators of performance will be added on the six above during the 3rd assessment of minimum con-ditions. These are listed below:• Level of LDG projects completed and made opera-tional• Timely response to queries raised in the financial au-dit report for the previous FY.• Project monitoring report prepared and submitted to MoLG for all LDG projects.Six indicators of performance will be added on the nine during the 4th assessment of minimum condi-tions. These are listed below:• Quality of the District Annual plan in terms of linkag-es with the overall LG vision, development goals and objectives. Clear description of the development planning process with evidence of wide consultations with community councils/members• Adherence to LG procurement thresholds for goods and services• Quality of the Final financial Audit results for the pre-vious FY.• Actual local revenue collection has increased for previous FY compared to previous FY but one.• Percentage of collected local revenue against the planned revenue for the previous FY. • Capacity building progress report for the previous financial year

The detailed information about the scoring of Perfor-mance Measures is elaborated in the LG LDG Train-ing Handbook and the Guideline for National Assess-ment.

6.3 Appeal processIf a LG is not satisfied with the assessment results, it can appeal. The LG will prepare and present an appeal letter to the MoLG indicating areas of disagreement and attach the evidence for verification. MoLG will review the submitted appeal in consultation with the DDP Technical Team. If the situation necessitates an-other independent assessment of that LG, a separate team will be constituted to conduct another assess-ment to verify the report. If the appeal is found to be genuine upon review or by a 2nd assessment then the result will be corrected by MoLG and accordingly in-form the DDP Steering Committee


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The LGs will have to follow the GoL regulations for planning and budgeting in their preparation and im-plementation of activities related to the LDG. The De-centralization Policy 2014; emphasizes the need to fo-cus planning, poverty reduction and equitable local development. This calls for integrated rather than the-matic or sectoral planning. The Government appreci-ates the need to improve coordination between local and national planning in order to efficiently utilise the scarce resources and deliver services for all citizens. The Decentralization Policy states that the Govern-ment will ensure that development planning is inte-grated, participatory, evidence-based, and focused on addressing the priority needs of citizens, taking into consideration, the national strategic priorities and local specific needs and priorities; establish village develop-ment committees, as community structures to inter-face with local technocrats in articulating and trans-lating local people’s needs into action plans; ensure that local planning is results-focused and evidence-based, taking into consideration the locally available resources and capacities

Participatory planning is a process by which a defined community undertakes to reach a common socio-economic goal by systematically reviewing its prob-lems and finding a course of action to resolve those problems. The District Development Plan should be the Councils own creation. Plans prepared by people not living in their community cannot inspire the people to participate in their implementation.

7.1 Principles of Participatory Planninga) Inclusion of poor people and other vulnerable groups in the planning processb) Plans should deliberately promote gender equityc) Plans need to be realisticd) Planning should not be a one off exercise but a continuous processe) Plans should be people focused and empower-ingf) Planning should start from vision and strength/op-portunities not problemsg) Plans should be integrated (including plans from all community councils) comprehensive covering all sectors (holistic) and cross – cutting issues.

h) Planning should promote mutual accountability between the community members and the officersi) Plans should be simple, flexible and learning ori-ented

Disbursements under LDG will be based on the annual work plans approved by the council and submitted to the MoLG. However if a LG wishes to change its work plan in any quarter, it should resubmit the revised work plan and the new cash flow for that quarter. To revise the work plan, which might result into change of pro-jects and budget, the following steps should be fol-lowed:

a) The user Department shall prepare the necessary documents, which may include project profiles (for new projects which were not in the development plan), revised work plan, and the budget by quarter required to implement the project.b) The above revision shall be discussed by the DDCC of the LG and the proceeding of the discus-sion recorded.c) The proposed change as adopted by the DDCC shall be presented to the Council for approval.d) The DCS/TC submits the revised work plan and cash flow to MoLG for funding.

It is important for LGs to ensure that the work plan and the cash flow is within the LDG Indicative Planning Fig-ure for that LG for that FY.

The form below presents the format for the Annual/Quarterly Work Plan and cash flow. It is important to note that the format for this form is the same with the Physical Progress Report Form which will be presented later. The LG should separately show and itemise, in their Annual/Quarterly Work plan – Form, activities for investment service costs, M&E activities and items for re-tooling.

The Annual Work plan will be accompanied by a Reset-tlement and Compensation Plan in the case of those projects in which people will be displaced, lose in-come, livelihood, assets, shelter or access to means of income. A LG Management Environment Plan should also be attached to the work plan.

7.0 PLANNING AND BUDGETING


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DDP/LDG ANNUAL WORK PLANa) Name of the Local Government ……………………………………b) Program/Project title…………………………………….c) For the period (month and year)………………………... to (month and year)…………..SECTOR PROJECT DE-

S C R I P T I O N (quantifiable)

BUDGET PLANNEDEXPENDITURE BY QUARTERS

S O U R C E S OF FUNDS

P R O J E C T COST

April - June July - Sept Oct - Dec Jan – Mar. LDG OTHERS

Investment CapitalE x a m -ple:Educa-tion

Example:Construction of a 2 classroom block (indicate the location)

Re-tooling

Monitoring and Evaluation

Investment Service Costs

TotalSigned (name & signature)…………………… Signed (name & signature)……………………(DCS/TC) (Finance Manager)

Date and Stamp…………………………… Date……………………

The District Economic Planner is responsible for preparing and reviewing the plan before approval and onward submission to the MoLG.

Poorly filled Forms will not be accepted by MoLG.


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QUARTERLY/ANNUAL PROGRESS REPORTING ON THE WORK PLANa) Name of Local Government……………………………………b) Program/Project title…………………………………….c) For the period (month and year)………………………... to (month and year)………….. SECTOR PROJECT

DESCRIPTION (QUANTIFIABLE)

PLANNEDBUDGET

ACTUALEXPENDITURE

SOURCES OF FUNDS Status/Completed

Comments

PROJECT COST

Investment CapitalExample:Education

Example:2 classroom blocks construct-ed (indicate the location)

Re-tooling(for clarity, itemise each activity [(i), (ii), etc)

M&E(for clarity, itemise each activity)

Investment Service Costs (for clarity, itemise each activity)

Total

* Category = District/Municipal InvestmentSigned (name & signature)…………………… Signed (name & signature)……………………(DCS/TC) (Finance Manager)

Date and Stamp……………………………........ Date…….....................................………………

The District Economic Planner is responsible for preparing and reviewing the plan before approval and onward submission to the MoLG.


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Filling Instructions for Annual Work Plan/Reporting – Form

The Annual Work Plan/Report should be filled based on the guideline detailed hereunder in this section:

Sector: In which sector is the project? e.g. road, education, water, health, etc.

Project description: It should be as descriptive and quantifiable as possi-ble. It should mention location, etc. e.g. Construction of a four classroom block at Ha Thaba Tseka, Qacha’s Nek. Do not describe projects in general terms such as construction of classrooms. This is because they do not make any sense as one would be bound to ask how many classrooms. It is therefore very important that each project should be described in a concise man-ner and in a quantifiable term as possible.

Project cost: This is what the project is budgeted to cost.

Planned Expenditure by quarters: Amount of funds planned to be spent by quarter.

Sources of funds: LDG: The LDG column should be filled by entering in how

much funds from the LDG have been budgeted.

Others: Under this column fill in how much money is planned to be used from other sources. If it is in kind e.g. bricks, stones and sand value them (monetise and insert the figure). Mention the source of funding e.g. Community, World vision, etc, in the comments column.

Completed: In this column mention, whether the project has been completed or not completed. Simply write Yes or No. In the last column state the reason as to why the project is not completed e.g. Rains disrupted the work, con-tractor not paid on time, etc (N.B. This is if the project is not complete). One may write any other comment about the project implementation. For example ex-cellent workmanship, Contractor absconded another was hired to complete the work, etc.

Comments: The Officer filling this form should have visited the pro-ject site and therefore able to make comments. These comments should pertain to the status of the project. If the project is uncompleted the comment should state the stage at which it is, whether or not it is on schedule. If not on schedule why not? If completed comment on the utilisation, operation and maintenance of the project.

8.0 LDG PROCUREMENT AND DISPOSAL OF ASSETSProcurement can be referred to as the process of ac-quisition of goods, works and services to satisfy identi-fied needs in the right quantity, quality, time, source and price. The procurement function for LDG interven-tions shall be conducted in accordance with the provi-sions of the Local Government Act, 1997, as amended; the Procurement Regulations, 2007 and the Financial Regulations. The Tender Panels shall demonstrate a high degree of transparency, ethics and integrity.

8.1 Principles of Public ProcurementThe basic principles for procurement of goods, services and works are:a) Promotion of transparency, accountability and fair-ness;b) Achievement of value for money;c) Keeping confidentiality until successful bidder is noti-fied of the award;

d) Following the existing code of conduct;e) Use of open competitive bidding;f) Public accessibility; and g) Award to best evaluated offer

8.2 Procurement for the DDP at the National (MoLG) LevelThe procurement function at Central Government lev-el is categorized into two, namely;

i) Procurement of goods and ii) Procurement of services.

Procurement of goods shall entail procurement of items like motor vehicles, computers, office furniture, office equipment and stationery. Procurement of ser-vices shall entail procurement of services such as en-gaging or recruitment of consulting firms, and hiring of individual consultants.


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Sample Procurement Plan ………………………………………….LGFY………………………………………..Item/D es c r i p -tion

Qty ProcurementMethod

Procurement Process schedule CoWs/S Estimated amount

Cont ract -ed Amount

Bid docs p r e -pared

TOR Adv. BO TE CA D

COWs/S – Certificate of Works/ServicesTOR – Terms of ReferenceAdv. – AdvertBO – Bid openingTE – Technical EvaluationCA – Contract AwardD – Delivery/implementation

8.3 Procurement at Local Government LevelProcurement in the Local Governments shall be car-ried out following the Local Government Act, 1997 as amended and the Procurement Regulations, 2007. The procurement office and the procurement panels at the LG level shall be responsible for the procurement function. The Procurement panels have the powers to award contracts for works, services and goods and to decide on the disposal of assets within their area of jurisdiction. However, there must be value for money.

The procurement function at the LG level is catego-rized in three sections, namely:

a) Procurement of goods/supplies: This entails procure-ment of items like computers, office furniture, school furniture, office equipment and stationery, etc. b) Procurement of works: This shall entail construction of office and staff houses, roads, protection of springs, boreholes, renovations, etc.

c) Procurement of services: This shall entail engaging or recruitment of consulting firms, and hiring of individu-al consultants e.g. for capacity building activities.

8.4 Procurement PlanningThe procurement plans at the LG level shall be pre-pared (as guided by the Procurement Regulations, 2007) as part of the local planning and budgeting pro-cess. The procurement plans shall be prepared on an annual basis.

Procurement planning starts with identification of procurement needs. Each Department within the LG identifies the required goods, services and works and prepares a procurement plan for the department. The Procurement Office prepares a consolidated LG pro-curement plan which is approved by the District Coun-cil as part of the approved Annual development work plan and subsequently reviewed by MoLG.

8.5 Procurement ImplementationThe LG Procurement Units shall liaise with the relevant heads of departments in drafting the bid documents as well as contract administration.

The LG Procurement Units shall be responsible for qual-ity assurance and procedure adherence of all pro-cured documents prior to presentation to the procure-ment panel for approval or contract award.

The Procurement method for each particular contract shall depend on the threshold and category the par-ticular procurement falls in as described in the Procure-ment Regulations, 2007, for example in the case of Dis-tricts, the purchase which is below M30, 000.00, direct method of purchase is used; for purchases above M30, 000.00 and less than M100, 000.00, three quotations are solicited from suppliers, for purchases above M100, 000.00, a tendering method of procurement is used.


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8.6 Tendering ProcessThere are different methods of tendering;• Non-competitive procurement (single tender): It shall be applied where there is only one supplier capable of meeting the requirement. This could be where intellec-tual property rights or patents legally prevent the ap-plication of competition. It shall further be used where additional supplies do not exceed 20% of the value of the initial contract. In addition, the cost of additional works does not exceed 15% of the value of the initial contract and the comparison threshold price.

• Open tendering: An invitation to tender has to be announced, and all interested tenderers shall be given an equal opportunity to participate.Invitation to tender shall bind tenderers to submit the following documents: Tax clearance certificate Trader’s license Bid security (1% or 2% of tender price) Signed certificate of site inspection Power of attorney Joint venture agreement where the bidders have formed a joint venture Any other document that is deemed necessary de-pending on the type of work or service to be provided

date of site visit, closing date and date of tender open-ing

Supervision of LGs in respect to the Procurement Func-tionMoLG shall conduct annual audits of Procurement in LGs. MoLG shall also be at the disposal to LGs for the provision of technical guidance in Procurement as may be required.

8.7 Disposal of Assets procured using the LDGIn situations where the LG decides to sell an asset pro-cured using the LDG, it is important that buildings/structures and other assets improved or procured un-der the LDG, are not sold immediately for the sake of short-term economic gains. Assets acquired under LDG will require screening by the MoLG prior to an eventual sale of the assets.

If these procedures are not followed, the LG may be required to refund the grant used for the improvement of the structures, and/or a reduction in the future grant allocation. Furthermore, when buildings are sold, as a minimum reflect the market value and due process demonstrating that these items are surplus to require-ments or when their disposal provides a positive cost-benefit to an alternative option.

High standards of financial management are a perti-nent feature of the LDG. The LGs will not receive the share of the grants, unless they adhere to the mini-mum conditions in the LDG. The adherence to these standards will be checked by the annual assessment, quarterly review of reports, inspection and supervision, internal audit from MoLG and by the annual external audit carried out by MoF.

The LDG is provided to LGs as a grant to the Capital Development Budget not a loan. The normal LGs ac-counting procedures will therefore apply as detailed in the Financial Regulation, 1973 and the Municipal and Urban Financial Regulations of 1980. Each LG shall use the invoices, delivery notes, LPOs, receipts, vouchers as

and when necessary. However these supporting docu-ments shall be kept by the LG and shall be demanded by Auditors during the general audit of a LG.

Under the Financial Regulation, 1973 and the Munici-pal and Urban Financial Regulations, 1980, LGs are re-quired to have the necessary books of accounts and ensure that they are properly kept. The mandatory books of accounts are:a) A Cash bookb) A Vote bookc) A General Ledgerd) A Journale) Annual Financial Statement f) An Assets register

9.0 FINANCIAL MANAGEMENT, INTERNAL CONTROLS AND AUDIT


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The above books are considered properly kept if they are regularly posted and up dated.

The LGs should make use of the designated Capital development account in a commercial bank to han-dle the in and outflows of the LDG related activities. This has been a common practice with the GoL capital development funds and should continue.

The funds for the LDG should strictly be used to finance investments stipulated in the approved work plans sub-mitted by the LG to the MoLG.

The Capacity Building Grant should be used to finance capacity building activities stipulated in the approved Capacity Building work plan submitted to the MoLG.

9.1 Administration of the LDGAt the LG level the fund shall be managed by the DCS/TC on behalf of the Council of that LG.

9.2 LDG Disbursement to Local GovernmentsThe LGs must submit approved annual Work Plans to the MoLG for analysis to ensure that they are line with this manual. The MoLG will then submit to the MoF an-nual details of LGs requirements and the funds needed for the LDG. The MoF will then transfers the funds direct to LGs. Further releases of funds to LGs are made upon submission of satisfactory accountability for the previ-ous releases to MoLG.

9.3 LDG Accountability RequirementsAccountability to the MoLG shall be done on a month-ly, quarterly and Annual basis in line with the current practice.

The Accountability from a LG to MoLG will have the following documents;

1. Financial Summary Sheet for the LDG2. Financial Summary sheet for the CBG3. Physical Progress Report for the LDG4. Capacity Building Progress Report5. Bank reconciliation statement for the period covered by the report,6. Quarterly Work Plan 7. Quarterly Capacity Building Plan8. Quarterly Project Monitoring Report9. Quarterly Project Inventory Report

At the end of the financial year, together with annual accountability report, the LG shall submit:

i. Duly filled and signed Investment Inventory report; andii. Duly Filled and signed Monitoring report.

Full accountability shall be considered met by a LG if all the above requirements are submitted to MoLG for every month, quarter and Annual. It is the responsibil-ity of the DCS and the Town Clerk to ensure that the reports are submitted not later than 15th of the last month of each quarter so as to give MoLG enough time to submit reports to MoF and UNDP/UNCDF on re-quired dates.


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(I)

(II) (III) (IV) (V)

Period Amount Annual Budget Expenditures during the re-porting period

Available Bal-ance

(a) Opening Balance(b) Advance Received(c) Co-funding(d) Available Funds

= (a) + (b) + (c)

Expenditure by Description1. Capital investments (85%)2. Retooling (5%)3. Monitoring & Evaluation (5%)4. Investment Servicing (5%) 5. Bank Charges(e) Total Expenditure(f) Closing Balance(g) Outstanding Obligations(h) Planned Expenditure(i) Total requirements(j) Less Closing Balance(k) Advance Requested

add 1 to5

= (d) - (e)

= (g) + (h)= (f)

= (g) - (f)

The above Form must be filled based on the following Guidelines:a) The Name of District/Municipality.b) The programme: DDP - LDG as appropriatec) The period for which the accountability is being done.d) Currency in which the accountability is being done e) Opening balance, this is the cashbook at the be-ginning of the period one is accounting for. If the ac-countability is a proceeding one, this should have been the closing balance of the former one.f) Advances received should only be the amounts re-ceived from the Ministry of Finance/Central Bank of Lesotho.g) Co-financing; any co-financing banked on the ac-

count should feature in this subsection h) Available funds should be the sum of (a) + (b) +(c)i) Total Expenditure is the sum of the capital invest-ments, Investments servicing costs, retooling, moni-toring transferred and should be agreeing to the to-tal expenditure in the cashbook. The percentages in brackets represent the maximum amounts of the fund to be used in each category, but when filling the form we should fill in the actual amounts spent which can be less investment servicing cost and allowances but more for fixed assets for that particular period.j) Closing balance is the difference between available funds and total expenditure. (d)-(e) which should be reconciled with the balance in the cashbook.k) Outstanding Obligations represent the financial

Sample Form: LDG Financial Summary Sheet

Ministry of Local Government, Chieftainship and Parliamentary AffairsFinancial Summary Sheet

(a) District/Municipality______________________________________(b) Program: Local Development Grant (c) For the period ________________to____________________ (d) Currency: (Maluti)

Prepared by Certified by Accounting OfficerDate Date_________


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commitments such as outstanding contractual com-mitments entered into and not yet fully paid for.l) Planned expenditure represents the amount the LG intends to spend in the coming quarter. These should include new activities for the period and the old activi-ties that the LG did not accomplish in the past quarter.m) Total Requirements are the sum of the obligations and planned expenditure, (g)+(h)n) Less closing balance, that is (f)o) Advance requested, this represents your total needs or requirements less the amount you have on the ac-count, that is (g)-(f).

9.4 Bank Reconciliation StatementIn addition to the Financial Summary Sheet, the narra-tive Progress Report, each LG is required to submit

the Bank Reconciliation statement for the quarter it is reporting.

9.5 Internal ControlInternal control is the whole system of controls, financial and otherwise, established by the LG management to carry out the tasks of the LG in an orderly manner, to safeguard its assets and to secure as far as possible the accuracy and reliability of its records. The main objec-tives of internal control are:

a) To authorise access to assets;b) To authorize all transactions;c) To ensure that transactions/events are promptly and correctly recorded;d) To ensure that the assets in the Registers actually exist and are used for the intended purposes (s);e) Promotion of efficient operations by reducing waste and duplication of effort;f) Encourage compliance with LG policies and pro-cedures.

The following internal controls will apply to the LDGa) Approval and control of documents since controls may sometimes be abused by those in positions of au-thority.

b) Reconciliation of statementsc) Comparison of cash accounts to the cashbook balanced) Checks on arithmetical accuracy of records since there is always a potential for human error.e) Comparison of internal and external dataf) Maintenance and review of control accountsg) Pre-numbering vouchersh) Limitation of access to accounting records and assets

i) Quality controlj) Personnel procedures – In cases where staff may collude internally or with outsiders to circumvent the controlsa) Stated conflict of interestb) Regular review of areas of great risk

9.6 Internal AuditingAn independent appraisal or monitoring activity es-tablished by the LG management and by the Council for the review of the accounting and internal control systems within the Council. The following internal audit functions will be carried out by the internal auditor.

a) Both pre and post transaction audits of all finan-cial transactionsb) Routine compliance auditing and especially checks on compliance with the law and financial regulationsc) Review of the financial and accounting systems in place to ensure that they are adequate d) Ensure that budgetary control systems are in place and are followede) Assets audited to ensure efficient use and cus-todyf) Regular reviews to ascertain that the LG receives value for money in all its activities.g) On spot cash checksh) Special investigations when necessary

9.7 External AuditThe external Audit will be conducted annually by the Office of the Auditor General.

Audit opinions:Unqualified (Clean or positive) OpinionAn unqualified opinion should be expressed when the auditor concludes that the financial statements give a true and fair view or are presented fairly, in all material respects, in accordance with the applicable financial reporting framework.

Qualified Opinion – a modified (negative) audit opin-ionA qualified opinion should be expressed when the au-ditor concludes that an unqualified opinion cannot be expressed but that the effect of any disagreement with management, or limitation on scope is not so material and pervasive as to require an adverse opinion or a disclaimer of opinion. A qualified opinion should be ex-pressed as being ‘except for’ the effects of the matter to which the qualification relates.


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Disclaimer of opinion – a modified (negative) audit opinionA disclaimer of opinion should be expressed when the possible effect of a limitation on scope is so material and pervasive that the auditor has not been able to obtain sufficient appropriate audit evidence and ac-cordingly is unable to express an opinion on the finan-cial statements.

Adverse – a modified (negative) audit opinionAn adverse opinion is expressed by an auditor when the financial statements are significantly misrepre-sented, misstated, and do not accurately reflect the expenses incurred and reported in the financial state-ments (statement of cash, statement of assets and equipment).

An adverse opinion is expressed when the effect of a disagreement is so material and pervasive to the fi-nancial statements that the auditor concludes that a qualification of the report is not adequate to disclose the misleading or incomplete nature of the financial statements.

9.8 Identifying FraudFraud is the action of deceiving in order to make mon-ey or obtain goods illegally. Corporate fraud is that kind of fraud which is carried out in organizations like LGs mainly by employees.

Common methods of FraudThere are two broad categories:a) Manipulation of financial records and accounts by senior managers of the LG. The intention is to present a false picture of the financial status of the LG so that they may defraud the council in order to gain person-ally or otherwise.b) Direct stealing of council assets by employees for personal gain.

This can be done in a number of ways:a) Making double payments using the same support-ing documentsb) Paying employees using wrong, higher rates of payc) Direct stealing of cash at hand and forging docu-mentsd) Forging cheque signatures

e) Stealing of council storesf) Stealing cash collections and forging receiptsg) Paying contractors and suppliers for no work done and forging documentsh) Stealing cash collections by recording a lower amount on the duplicate copy through carbon slip-ping

Some of the indications of frauda) Extravagant life styles by employees especially those in authoritative positions and or those who have custody of assetsb) Inconsistencies in accounting documents and re-cordsc) Unexplained delays in recording transactions in the accounting recordsd) Messy documents including unexplained filing pro-cedures which make it difficult to retrieve documents when needed (employees could be trying to hide evi-dence)e) Erasures and crossings in supporting documents and accounting recordsf) Refusal of employees to take leave annually (the employee may not wish to have his duties scrutinized by other employees)

Preventive MechanismsSome measures to prevent fraud are:a) Rotating of employees and insisting on employees taking mandatory leave.b) Strong and effective internal audit which ensures regular checks to detect fraudc) Regular bank reconciliations by independent per-sons may act as a deterrentd) Regular direct inspection of stores and other valu-ablese) Use of carbonized receipts to avoid theft by carbon slippingf) Payment of a living wageg) Deterrent penalties – A system of penalizing fraud-sters should be put in place and publicized to all em-ployeesh) Accountability procedures should include the re-quirement for timely accountability of funds


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Monitoring and Evaluation (M & E) is undertaken for the following four reasons:

a) As a management tool: M & E helps LG to know whether a LG is on track with the implementation of its work plans. Through M & E a LG shall be able to make corrective measures to ensure that it achieves the in-tended objectives it had set to achieve.

b) For documenting lessons learnt: A LG can use M & E for purposes of documenting the lessons it is learning in implementing the programme. This helps a LG to iden-tify the good practises for replication and discarding what does not work. This may necessitate change in project or programme modalities in order to improve on its performance.

c) For Policy reforms: Arising from results in (a) and (b) there might be a need for change in policies. This might involve amendments of the laws and regulations to ensure that a LG performance improves.

d) For impact evaluation: This is an activity, which is done to measure the impact of the project or pro-gramme (especially change brought about in the lives of the people). It is important for LGs to note that the Mid Term Review (MTR) of DDP is scheduled for 2015, unless otherwise advised. Each LG should have docu-ment the impact of the DDP interventions implement-ed in the district.

From the above, it is therefore very important that LGs undertake M & E seriously and ensure that proper re-cords of the necessary documents are kept both at Central Government level and district level.

The M&E system is based on verifiable information. In-formation like resolutions made by the council or any other statutory committees and meetings of the tar-get group on project identification and allocation of resources, Budget Framework Paper, Development Plan, posting of accounts data, etc. are important in the M&E system. Hence, documentation and easy retrieval of documents is critical. Furthermore, lessons and experiences gained during the implementation of the Programme can only be captured with efficient recordings and storage.

The following are the M&E activities to be undertaken at the various levels of Government regarding implemen-tation of the DDP and the Local Development Grant

National leveli) Annual National assessment of LGs performance to access the LDGii) Accountability, reporting and reviewing the pro-gram quarterly progress iii) Taking stock of completed projects iv) Reporting on the outputs, outcomes and impact on the programmev) Periodic/Annual review of program progressvi) Programme Mid Term Review vii) Programme Terminal Evaluationviii) Beneficiary satisfaction assessment surveys

District/Municipal Councili) Accountability, reporting and reviewing the pro-gramme monthly, quarterly and annual progress ii) Taking stock of completed projects iii) Periodic M&Eiv) Output and impact monitoring

Given the objectives of the LDG, the key areas to mon-itor and evaluate under LDG includes compliance to the set tasks and standards as provided for in laws and regulations of Lesotho. Adherence to the Environment and Social impact Management Framework, service delivery standards and service delivery packages will be monitored and evaluated. For simplicity and ease of application by LGs, some of these performance standards are embedded into the Assessment Manual of Minimum Conditions and Performance Measures for LGs and in this Operational Manual.

10.1 Planning for Monitoring and EvaluationThe District Development Plan will contain an M&E plan with indicators to monitor its performance along the way as well as its outcomes and impact after im-plementation. As the LGs embark on preparing rolling Development Plans, the starting point is to review and evaluate the performance of the previous Develop-ment Plan. Once a Plan has been rolled, the imple-mentation process must be monitored and evaluated to establish the outputs, the immediate and short term outcomes as well as the long term outcome (impact). For this reason, therefore, the Development Plan must

10.0 MONITORING AND EVALUATION


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contain a clear M&E Plan and this must be one of the attributes of a good Development Plan. When establishing an M&E plan for the District Devel-opment Plan, the stakeholders have to be clear on the following:

a) What exactly do we (stakeholders) want our De-velopment Plan to achieve (the overall goal and de-velopment objective of the Development Plan as well as the specific development objectives of the various sectors and departments? b) What activities shall we do in order to implement the Development Plan so that it achieves its objectives?c) When are these activities supposed to take place? d) What are the inputs (funds, materials, human re-source) required to perform these activities (schedul-ing)?e) What outputs do we expect to result from the activi-ties?f) When do we expect to get the outputs from the ac-tivities?g) What is the target group planned to benefit from the Development Plan and from the specific interventions or projects? h) What benefits do we expect to accrue to the target group?i) What change do we expect to be brought about by the projects outputs?

It is the answers to these questions, which will form a basis for the indicators.

10.2 Key areas to monitor and evaluateThe following are the key areas to monitor:

a) Activities Activities make up the process involved in implement-ing a project. The LG officials will monitor the district work plan to ensure that the planned activities are im-plemented in line with the laws, regulations and pro-cedures. This will give a chance to a LG to identify a shortfall or a problem in time and find a solution or a new and better strategy required to complete the pro-ject processes.

b) Resources (funds, materials, human resource)Monitoring in this area will aim at finding out if the planned resources are adequate, inadequate or there is a deviation. Also check to establish whether the materials delivered and human resource are of the required quality and quantity.

c) TimelinessThe project or the plan implementing persons will mon-itor to establish whether the resources, activities and outputs are being delivered on time and schedule as planned.

d) Target groupIt is important to monitor the project implementation process to ensure that the anticipated outputs are like-ly to benefit the target group. For example, compare the persons receiving the fish fries against the planned target group; check the project site to ensure that the project is located as planned in a place which is most accessible by the majority of the community.

e) Value for money (does the project have the values of Economy, Efficiency and Effectiveness)

A LG and its collaborators will monitor to establish whether the right thing is being done and the right way. Also check to establish whether the project once completed is operational and serving the planned pur-pose.

When measuring the Economy, a LG has to establish whether the financial, human and physical resources consumed in implementing the project are consistent with normally accepted practice and the quality of fin-ished projects is in conformity with the set standards.

To monitor Efficiency, a LG has to establish whether the process through which a project is implemented is consistent with the accepted rules and regulations and is cost effective.

Lastly, a LG has to carry out an evaluation of a project to establish its Effectiveness. That is, whether it is being utilized by the target group to the expected level and has achieved its objective and created an impact.

Examples: Impact LGs have to show in the Development Plan indicators which will show whether the Project has met its goal i.e. whether it has brought about the desired change in the lives of the beneficiaries. Taking education as an example, a good education leads to better grades, employment and hence better quality of life.

OutcomesLGs have to monitor to establish whether the outcomes


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M&E Plan format for DDP ProjectsSector

(1)

Output Indicator

(2)

Outputs(Actual)

(3)

Out-come

Indicator(4)

Out-come

(Actual)(5)

Impact Indicator

(6)

Impact(Actual)

(7)

Baseline

(8)

Achieve-ments FY 2014/15

(9)

Means of Verifica-

tion(10)

A. Edu-cationProject 1:

Con-struction of a five Class-room block

No. of class-rooms con-

structed

C l a s s -r o o m / pupil ra-tio

Im-proved grade (report

on num-ber of grades by cat-egory)

80 pupils per class-

room

40 pupils per class-room

Check records of the school head

teacher

B. HealthProject: 1

Con-struction of a ma-

ternity ward

No. of maternity

wards con-

structed

No. of deliver-ies at a mater-

nity ward (in the

hands of qualified medical

staff)

% reduc-tion in

maternal mortality

10 (10%) 40 (40%) Check records

of the in charge of the health centre

are as per set objectives and whether these objec-tives are still relevant. In the Development Plan, the LG should indicate the expected outcomes from the out-puts. For instance, if a LG has planned to construct two classrooms for 100 students currently schooling under a tree, the output indicator will be the number of class-rooms built. An example of the short term outcome is the improved pupil/class ratio (could be from 85:1 to 70:1), the medium term indicator could be the num-ber of pupils receiving all year round classes/or full time classes. (The impact is likely to be better grades say after a year or two).

OutputsCompletion of the process or activities lined up for each project is expected to lead to an output. Devel-op indicators, which will show whether the Develop-ment Plan has resulted in the planned outputs.

During the planning process, a LG will prepare an M&E plan to be included in the Development Plan. The M&E is the mechanism that will be used to establish whether the Development Plan is meeting its objectives. It con-tains baseline information, output indicators, outcome indicators and impact indicators.


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When monitoring and evaluating the performance of the District Development Plan, fill in columns (3),(5) and(7).

All completed projects should have a Completion Cer-tificate (which is issued by the supervisor) as well as an Environment Certificate by the District Environment Of-ficer (where at planning stage a project was identified as likely to affect the environment).

The Format below is a report on a completed project and is intended to capture project output, outcome

and impact in terms of numbers of facilities created, the size of the structure in case of construction, their outcome and impact on the people, the employment generated by the project and the number of benefi-ciaries.

Although this form is to be submitted at the end of eve-ry the Financial Year (FY), it should be filled immediately on completion of the project and updated at the end of the FY before submission. The update is important to capture changes brought about by the project.

Instructions to filling the output/outcome impact monitoring formA. Project Name: Fill in the project title as given in the Development Plan.FY This is the year being reported on.B. Location Give name of the village, community council and District/town council where

the project is located. Where a project is located in more than one commu-nity council, give all the names of the community councils involved.

C. Completed Project

D. Project in Development Plan

Indicate whether the project is completed or not by ticking yes or no in the box.

If the project is in the Development Plan tick yes.

E. Implementation Duration Indicate the planned and actual start date in terms of day, month and year. Give project completion date as planned and actual giving date, month and year.

F. Project Cost Three figures must be filled. First, the cost as in the Development Plan; second-ly, the contract sum as reflected in the contract document; and the actual cost at project completion.

G. Total Labour Cost Indicate the actual cost of the project to date. If not completed indicate the estimated cost to completion.

H. Meeting National Standards Indicate whether a project has met technical, functionality (appropriate & working) environmental and overall standards by ticking only one of the box-es for each of the aforementioned areas, i.e. highly satisfactory, satisfactory, unsatisfactory or highly unsatisfactory. Check the technical completion cer-tificate by the supervisor and the environment certificate by the Environment Officer.

I. Employment generated Indicate the planned person days (total number of planned days for the em-ployees to work in order to complete project implementation) and the actual person days worked (total number of actual days worked by the employees to complete the project). The project supervisor in collaboration with the con-tractor should always keep track and make records of persons (by gender) employed on the project during its implementation on a weekly basis.

J. Female participation Indicate the planned female person days (total number of planned days for female employees to work in order to complete project implementation) and the actual person days worked (total number of actual days worked by the female employees to complete the project)


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K. Output Indicate the number of facilities created by each project and by unit meas-urement where applicable e.g. 2 classrooms of 48m2 (whereby under col-umn for quantity you indicate the number of classrooms, to be followed by a row on the built area in m2). Indicating the size of the building is very essential in that it will indicate the sitting capacity or the occupancy capacity for struc-tures like halls, classrooms, dwelling units, etc., as well as the unit construction cost (in terms of maloti per square meter).

Beneficiaries Give the number of people directly benefiting from the project as well as those indirectly benefiting from the project. For instance while the students sit on the desks and are hence direct beneficiaries, the parents (are indirect beneficiaries) benefit in that they will spend less on buying soap and water. The teachers are also indirect beneficiaries in that desks will make supervision of students easier and less stressful.

Baseline Give the number of facilities existing before implementation of the project being reported on e.g. 50 classrooms.

Impact Possible options (key sector indicators) are given in sub-column 1 of column 5 but there could be more. If a factor of impact is not given under a column for impact indicators, add it to the list. Report on the relevant indicator(s) in sub-section 2 of column 5.

The form should be dully signed and stamped by the accounting officer. The names of signatories should be given. (Note: This form is for completed projects only).1

The District/Municipal Planner is responsible for reviewing all District M&E reports before onward submission to the MoLG. He/she will ensure that all forms are correctly filled for all completed projects. The number of completed projects can be determined from the Investment Inventory form.

Any form that will be poorly filled will not be accepted by MoLG. This will affect the next disbursements.

1 Other impact can best be determined by a field visit to site. Therefore, the person filling the form should first visit the site before filling in the form. They can utilize the project monitoring budget of LDG to do this).

Sample format: Education and Training Output/Outcome/Impact Monitoring Report Sector/Department: Education & Training (Remember to use the correct sector form) A. Project Name……………………………………………… FY……………………………..

B. Location: Village……………………… Community Council…………….. District/Municipality………………………. C. Completed Project Yes No D. Project in Development Plan Yes No Tender Board Award Yes No E. Implementation Duration Start Date (dd/mm/yy) Completion Date (dd/mm/yy) Planned……/……./………. Planned ……../………/………. Actual……../……./………. Actual ………./………/……….. F. Project Cost 1. Cost in Development Plan (M)………………………… 2. Contract sum: (M)………………… 3. Actual Cost…………………. G. Total Labour Cost of the Project to date: (M)….…… 1. Estimated Cost (at completion): (M) …………………. H. Meeting National Standards Highly Satisfactory Satisfactory Unsatisfactory Highly Unsatisfactory

Technical: Functionality rate:

Environmental: Overall:

I. Employment Generated Planned ………….…Person days Actual ………………….Person days J. Female Participation rates Planned ………….…Person days Actual ………………….Person days K. Output & Impact of the Project Impact Education Unit Qty Beneficiaries Baseline

(Previous FY)

Impact Indicators (pick any or more of the following as appropriate)

Impact (report on the performance of the indicator/change/improvement brought about by the Project)

Direct Indirect -Net Primary School enrolment -Pupil/classroom ratio -Performance at Primary Leaving Examination (grades) -Attendance in terms of hours -Handwriting -Cleanliness -Learning environment/comfort -Others (specify)

1. Classroom No. 2. Classroom M2 3. Desks No. 4. Tables No. 5. Chairs No. 6. Staff houses Dwelling

Units

7. Staff houses M2 8. Staff Offices Room 9. Staff offices M2 7.Others (specify)

Prepared by a) Head of Section…………… Date………….. b) Head of Department

Approved by………………………………

Date……………………… Accounting Officer (DCS/TC), Date & stamp ……………….

Direct Beneficiariesa) Classrooms & Desks : No. of Pupils/ Teachers using the facilityb) Tables, Chairs, Staff houses & offices : No. of Pupils/Teachers using the facilityIndirect Beneficiaries

Classrooms, desks, tables, staff houses & offices : Parents & residents of the catchment areaOther impactTeachers: Reduced turnoverParents: Less soap and less water used; less money spent on soap & water.


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Sample format: Environment Output/Outcome/Impact Monitoring Report

Sector/Department: Environment - Drainage (Remember to use the correct sector form) Project Name………………………… FY…………..

B. Location: Village………………… Community Council…………….. District/Municipality………………………. C. Completed Project Yes No D. Project in Development Plan Yes No Tender Board Award Yes No E. Implementation Duration Start Date (dd/mm/yy) Completion Date (dd/mm/yy) Planned……/……./…... Planned ……../………/………. Actual……../……./….... Actual ………./………/……….. F. Project Cost 1. Cost in Development plan: (M)…………………………. 2. Contract sum: (M)…………………. 3. Actual Cost (M)…………………………… G. Total Labour Cost of the Project: (M)…………… 1. Estimated Cost (at completion): (M) …………………. H. Meeting National Standards Highly Satisfactory Satisfactory Unsatisfactory Highly Unsatisfactory



I. Employment Generated Planned ………….…Person days Actual ………………….Person days J. Female Participation rates Planned ………….…Person days Actual ………………….Person days K. Output & Impact of the Project Drainage Unit Qty Beneficiaries Impact Direct Indirect Baseline

(Previous FY)

Impact Indicators (pick any or more of the following as appropriate)

Impact (report on the performance of the indicator/change/improvement brought about by the Project)

1. Lined Drainage Metre -No. of cases of other sanitation related diseases -No. of Dwelling Units no longer flooding -No. of Commercial properties no longer flooding -No. of roads/path ways no longer flooding -Others (specify)

2. Delisted Drainage

Metre

3. Others (specify)


Approved by ………………………………

Date……………………… Accounting Officer (DCS/TC), Date ………………. Direct Beneficiaries: Community residents leaving within a range 0.5 to 1 km. on either side of the drainage; Population in Dwelling Unit & Commercial Premises which are no longer flooding.Indirect Beneficiaries: Community/catchment area within a range of 1 km. to 5km from the drainage


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Sample format: Water Output//Outcome/Impact Monitoring Report Sector/Department: Water – Water (Remember to use the correct sector form) Project Name…………………………………………………………………………………………………… FY……………………… B. Location: Village……………………… Community Council…………….. District/Municipality………………………. C. Completed projects Yes No D. Project in Development Plan Yes No Tender Board Award Yes No E. Implementation Duration Start Date (dd/mm/yy) Completion Date (dd/mm/yy) Planned……/……./………. Planned ……../………/………. Actual ……../……./………. Actual ………./………/……….. F. Project Cost 1. Cost in Development plan: (M)……………….. 2. Contract sum: (M) …………….. 3. Actual Cost (M)……………………… G. Total Labour Cost of the Project: (M)…………… 1. Estimated Cost (at completion): (M) …………………. H. Meeting National Standards Highly Satisfactory Satisfactory Unsatisfactory Highly Unsatisfactory



I. Employment Generated Planned ………….…Person days Actual ………………….Person days J. Female Participation rates Planned ………….…Person days Actual ………………….Person days K. Output & Impact of the Project Water Unit Qty Beneficiaries Impact Direct Indirect

Baseline (Previous FY)

Impact Indicators (pick any or more of the following as appropriate))

Impact (report on the performance of the Impact indicator /change/improvement brought about by the project)

1. Protected Springs No. -Safe water coverage -Proportion of rural population within 1km. to safe water -Proportion of urban population within 0.25km. to safe water -No. of water borne diseases -No. of cases of diarrhoea diseases in the under 5 years -others (specify

2. Protected Shallow wells

No.

3. Water tanks No. 4. Piped water: Stand pipes

No.

5. Piped water: pipe network

Mtr

6. Borehole No. 7. Gravity water scheme No. 8. Others (specify)


Approved by ………………

Date……………………… Accounting Officer (DCS/TC), Date ………………. Beneficiaries

Urban: Population within 0.25km. Walking Distance to water sourceRural: Population within 1km. walking distance to water sourceIndirect Beneficiaries: Persons who have received tender awards to supply materials, equipment & tools in respect to or construct water facilities, Technicians in water works, producers and traders of machine parts for water sources.


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Sample format: Environment Output//Outcome/Impact Monitoring Report Sector/Department: Environment -Solid Waste (Remember to use the correct sector form) Project Name……………………………………………………………………….. FY……………… B. Location: Village……………………… Community Council…………….. District/Municipality………………………. C. Completed project Yes No D. Project in Development Plan Yes No Tender Board Award Yes No E. Implementation Duration Start Date (dd/mm/yy) Completion Date (dd/mm/yy) Planned……/……./………. Planned ……../………/………. Actual ……../……./………. Actual ………./………/……….. F. Project Cost 1. Cost in Development plan: (M)…… 2. Contract Sum………………… 3. Actual Cost (M)…………………… G. Total Labour Cost of the Project: (M)…………… 1. Estimated Cost (at completion): (M) …………………. H. Meeting National Standards Highly Satisfactory Satisfactory Unsatisfactory Highly Unsatisfactory



I. Employment Generated Planned ………….…Person days Actual ………………….Person days J. Female Participation rates Planned ………….…Person days Actual ………………….Person days K. Output & Impact of the Project Solid Waste Unit Qty Beneficiaries Impact

Direct Indirect Baseline (Previous FY)

Impact indicators (pick any or more of the following as appropriate)

Impact (Report on the performance of the impact indicator/change /improvement brought about by the project)

1. Garbage skips/bunkers

No. -No. of cases of diarrhoea diseases -No. of cases of other sanitation related diseases -Proportion of the population within easy access to garbage disposal facilities (garbage coverage) -Others (specify)

2. Landfill M2 3. Others (Specify)



Date……………………… Accounting Officer (DCS/TC), Date ………………. Direct Beneficiaries : Population of the catchment area e.g. the city, the Town Council

Indirect Beneficiaries : Not applicable


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Sample format: Public Works and Transport Output//Outcome/Impact Monitoring Report Sector/Department: Public Works and Transport – Roads (Remember to use the correct sector form) A. Project Name………………………… FY……………………………… B. Location: Village……………………… Community council…………….. District/Municipality………………………. C. Completed Project Yes No (See Below) D. Project in Development Plan Yes No Tender Board Award Yes No E. Implementation Duration Start Date (dd/mm/yy) Completion Date (dd/mm/yy) Planned……/……./………. Planned ……../………/………. Actual ……../……./………. Actual ………./………/……….. F. Project Cost 1. Cost in Development plan: (M)………………………….. 2. Contract sum: (M) …………….. 3. Actual Cost: (M) ……………. G. Total Labour Cost of the Project: (M)…………… 1. Estimated Cost (at completion): (M) …………………. H. Meeting National Standards Highly Satisfactory Satisfactory Unsatisfactory Highly Unsatisfactory



I. Employment Generated Planned ………….…Person days Actual ………………….Person days J. Female Participation rates Planned ………….…Person days Actual ………………….Person days K. Output & Impact of the Project

Roads Unit Qty Beneficiaries Impact Direct Indirect Baseline

(Previous FY)

Impact Indicators (Pick any or more of the following as appropriate)

Impact (report on the performance of the indicator/change/ improvement brought about by the project)

1. Paved

Km. -No. of vehicles using the road-Improved access to services like hospitals -Improved access to markets by farmers. -Growth of road side markets & market towns/trade centres -Population served by the boat -Others (specify)

2. Gravel (murram) Km. 3. Earth Km. 4. Culverts/M2 No. 5. Bridges/M2 No. 6. Donkey/horse No. 7. Others (specify)

Prepared by a) Head of Section …………… Date………….. b) Head of Department


Date……………………… Accounting Officer (DCS/TC), Date ………………. Direct Beneficiaries: Population of the catchment area in the vicinity of 1- 0.5km. from the road; average num-

ber of Vehicle per day recorded overtime e.g. one month; vendors along the road. Indirect Beneficiaries: Population density of the area served by the road i.e. within a distance of 1 - 5 km. from the road. Population served by the donkey/horse.


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Sample format: Water Output//Outcome/Impact Monitoring Report Sector/Department: Water – Sanitation (Remember to use the correct sector form) A. Project Name………………………… FY…………………. B. Location: Village…………………… Community Council…………….. District/Municipality………………………. C. Completed projects Yes No D. Project in Development Plan Yes No Tender Board Award Yes No E. Implementation Duration Start Date (dd/mm/yy) Completion Date (dd/mm/yy) Planned……/……./………. Planned ……../………/………. Actual ……../……./………. Actual ………./………/……….. F. Project Cost 1. Cost in Development plan: (M)………………………… 2. Contract Sum………………………… 3. Actual Cost: (M) ……………. G. Total Labour Cost of the Project: (M)…………… 1. Estimated Cost (at completion): (M) …………………. H. Meeting National Standards Highly Satisfactory Satisfactory Unsatisfactory Highly Unsatisfactory



I. Employment Generated Planned ………….…Person days Actual ………………….Person days J. Female Participation rates Planned ………….…Person days Actual ………………….Person days K. Output & Impact of the Project Sanitation Unit Qty Beneficiaries Impact Direct Indirect

Baseline (Previous FY)


Impact (report on the indicator performance/ change/improvement brought about by the project)

1. Latrine No. -Latrine coverage (no. of Households (HHs) served by latrines) -No. of HHs covered by adequate sanitation facilities(all forms of excreta disposal) -No. of urban HHs served with adequate waste water facilities -No. of sanitation related diseases (check for decrease) -Other (specify)

- 2. Latrine Stance 3. Urinal (for latrine) No 4. Water borne toilet

No.

5. Waste water drainage

Metre

6. Urinal (water borne)

No

7. Sceptic tank No 8. Sceptic tank M2 8. Bathroom No 9. Sanitation lane Metre 10. Others (specify) Prepared by a) Head of Section…………… Date………….. b) Head of Department


Date …………………… Accounting Officer (CAO/TC), Date & Stamp.............................. Direct Beneficiaries

• Number of people using the latrine or the water borne toilet. The users could be members of the surrounding households. These could be pupils and teachers if the latrine or toilet is meant for the school. This could also be patients and medical staff if the facility is located in a health institution e.g. Health

Centre,etc. • People in households and business premises whose waste water is directly being exposed by the drain-age.• Number of people (in households and business premises using the sanitation lane)


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Sample Format: Health and Social Welfare Output//Outcome/Impact Monitoring Report Sector/Department: Health & Social Welfare – Health (Remember to use the correct sector form) A. Project Name………………………… FY…………………… B. Location: Village…………………… Community Council…………….. District/Municipality………………………. C. Completed Project Yes No C. Project in Development Plan Yes No Tender Board Award Yes No D. Implementation Duration Start Date (dd/mm/yy) Completion Date (dd/mm/yy) Planned……/……./………. Planned ……../………/………. Actual ……../……./………. Actual ………./………/……….. E. Project Cost 1. Cost in Development plan: (M)……………………….. 2. Contract sum: (M) …………….. 3. Actual Cost: (M) ……………. F. Total Labour Cost of the Project: (M)…………… 1. Estimated Cost (at completion): (M) …………………. G. Meeting National Standards Highly Satisfactory Satisfactory Unsatisfactory Highly Unsatisfactory Technical: Functionality: Environmental rate: Overall: H. Employment Generated Planned ………….…Person days Actual ………………….Person days I. Female Participation rates Planned ………….…Person days Actual ………………….Person days Output/Impact of the project Health Unit Qty Beneficiaries Baseline

(Previous FY)

Impact Direct Indirect Health Centre 2 (HC2) No. Impact Indicators

(Pick any or more of the following as appropriate)

Impact (report on the performance of the indicator/change /improvement brought about by the project)

Health Centre 2 M2 -Total number of new OPD attendance at a health Centre -Total number of children immunised against DPT3 HEPB HI (increase) -Total number of deliveries conducted at a health centre -Others (specify)

Health Centre 3 (HC3) No. Health Centre 3 M2 Health Centre 4 (HC4) No. Health Centre 4 M2 Outpatient Department (OPD)

No.

Outpatient Department M2 Maternity ward (MW) No. Staff Houses (SH) Dwellin

g Units

Staff Houses M2 Hospital Beds (HB) No. Hospital equipment (HE) No Ambulance (A) No. Others (specify) Prepared by a) Head of Section........................ b) Head of Department Date……....................

Approved by Accounting Officer………………Date……

Direct Beneficiaries HC2 - Population in a Village, HC3 - Population in a Community Council/TC;MW &OPD - Population in a Community Council, District (depending on the health facility HC 2, HC3, HC4); HB, & HE - benefit from mattresses, beds & equipment; SH - no. of persons living in the Dwelling Units.Indirect Beneficiaries: SH - population in the catchment area could be a community council/District, TC, de-pending on the grade of the facility.


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Sample format: Agriculture and Food Security Output//Outcome/Impact Monitoring Report

Department: Agriculture and Food Security – Production (Remember to use the correct sector form) A. Project Name………………………… FY………….. B. Location: Village…………………… Community Council…………….. District/Municipality………………… C. Completed Projects Yes No D. Project in Development Plan Yes No Tender Board Award Yes No E. Implementation Duration Start Date (dd/mm/yy) Completion Date (dd/mm/yy) Planned……/……./………. Planned ……../………/………. Actual ……../……./………. Actual ………./………/……….. F. Project Cost 1. Cost in Development plan: (M)……………….. 2. Contract sum: (M) ……………. 3. Actual Cost (M)………………….. G. Total Labour Cost of the Project: (M)…………… 1. Estimated Cost (at completion): (M) …………………. H. Meeting National Standards Highly Satisfactory Satisfactory Unsatisfactory Highly Unsatisfactory Technical: Functionality rate: Environmental: Overall: I. Employment Generated Planned ………….…Person days Actual ………………….Person days J. Female Participation rates Planned ………….…Person days Actual ………………….Person days K. Output & Impact of the Project Production Unit Qty Beneficiaries Impact Direct Indirect 1. Cattle No. Baseline

(Previous FY)


Impact (report on the performance of the indicator/change/ improvement brought about by the project)

2. Goat No. -Improved crop yields (specify crops) -No. of animal stock (specify animals) -No. of bird stock (specify birds) -Improved fish yields (fish stock) -No. of farmers within easy access to markets -Improved incomes of the farmers -Stunting among children under 5 -others (specify)

3. Sheep No. 4. Pigs No. 5. Fish Ponds No. 6. Construction of markets

No

7. Cattle deeps No 8. Water troughs No 9. Water dams/M2 No 10. Others (specify) Prepared by a) Head of Section …………… Date………….. b) Head of Department


Date…………………… Accounting Officer (DCS/TC), Date……………. Direct Beneficiaries: Population in the catchment area

e.g. Community Council/Town Council Indirect Beneficiaries: Transporters; producers and traders of pesticides and fertilizers, animal and vet

drugs, animal and fish feeds; producers and traders of animal, fish and agriculture equipment & implements. Number of contract awards and contract value to suppliers and contractors


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11.1 Legal frameworkThe National Environmental Act 2008 regulates environ-mental issues in Lesotho. The Part A of the first schedule in the Act provides a list of projects that require an en-vironmental impact assessment (EIA) to be undertaken prior to project implementation. For example;

• Rural and Urban developments – industrial es-tates, designation of new urban areas, recreational areas, tourist facilities, hotels, shopping centres• Transport – major roads, water transport, bridges• Dams, rivers and water resources – reservoirs, stor-age dams, flood controls schemes, ground water, springs • Mining, Mineral extraction/quarrying – precious stones, mineral, metals, coal, sand, diamonds, lime-stone• Forestry – clearance of forest areas, afforestation, timber harvesting• Agriculture – large scale agriculture, use of agro-chemicals, manufacturing, use of new pesticides• Processing and manufacturing industries – tan-ning and dressing of hides and skins, abattoirs and meat processing, food processing, bulk distribution facilities• Energy and Electricity – electrical generation sta-tions• Waste handling –sites for solid waste disposal, sew-erage treatment and disposal

The Act defines an environmental impact assessment as ‘a systematic examination conducted to determine

whether or not a project will have any adverse impacts on the environment. Potential negative environmental and social impacts due to project activities that are likely to include loss of vegetation, soil erosion, soil and groundwater pollution, air pollution, public health im-pacts such as traffic hazards, noise, dust, and loss of livelihoods must be identified; appropriate mitigating measures defined, costed and incorporated into the projects budgets.

11.2 Screening of ProjectsScreening FormA standardised project brief is submitted by a devel-oper using the Screening Form. The Screening Form re-quires that the developer provides information on the proposed project/activity.

The Environmental and Social Screening Form (ESSF) has been designed to assist in the evaluation of LDG supported activities. The form is designed to place in-formation in the hands of LGs so that impacts and their mitigation measures, if any, can be identified and/or that requirements for further environmental analysis be determined.

The ESSF contains information that will allow the Districts to determine the characteristics of the prevailing local physical and social environment with the aim of assess-ing the potential project impacts on it. The ESSF will also identify potential socio-economic impacts that will re-quire mitigation measures.

11.0 ENVIRONMENT, NATURAL RESOURCE AND SOCIAL MANAGEMENT

Sample Name of the project: …………………………………………………………………………….

Sector of the project: ………………………………………………………

Department implementing the project …………………………………………………

Name of the District/Municipality where the project is to be implemented: …………………………………………….

Name of the Community Council: ……………………………………………………….

Name of Approving Authority ……………………………………………….

Name, job title, and contact details for the person who is responsible for filling out this form.

Name:………………………………………………………………………………………………


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Job Title: …………………………………………………………………………………………

Telephone number: ………………………………………………………………………Fax number: …………………………………………………………………………………...

E-mail address …………………………………………………………………………….

Date:………………………………………………………………………….

Signature:……………………………………………………………………

1. Brief Project Description

Please provide information on the type and scale of the project (project area, area of required land, etc.)______________________________________________________________________________________________________________________________________________________________________________________________________________________

2. The Natural Environment

(a) Describe the land formation, topography, vegetation in/adjacent to the project area (e.g. is it a low lying land, water logged, rocky, swampy or wetland, etc.,)______________________________________________________________________________________________________________________________________________________________________________________________________________________

(b) Estimate and indicate whether vegetation might need to be cleared _____________________________________________________________________________________________________________________________________________________________________________________________________________________

(c) Are there any environmentally sensitive areas or threatened species that could be adversely affected by the project (specify below)?

(i) Intact natural forests Yes______No______

(ii) Riverine forest Yes______No______

(iii) Wetlands (lakes, rivers, seasonally inundated [flooded] areas) Yes______No______

(iv) How far are the nearest wetlands (rivers, seasonally inundated [flooded] areas)? __________________km

(v) Habitats of endangered species for which protection is required under the laws and/or international agreements. Yes______No______

(vi) Others (describe). Yes______No______ (e.g cultural sites, burial places, etc.,)

3. Rivers and Ecology

Is there a possibility that due to construction and operation of the project the river and ecology will be adversely affected? Attention should be paid to water quality and quantity; the nature, productivity and use of aquatic habitats, and variations of these over time.

Yes______No______


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4. Protected areas

Does the project area (or components of the project) occur within/adjacent to any protected areas designated by government (national park, national reserve, world heritage site, etc.,)

Yes______No______

If the project is outside of, but close to, any protected area, is it likely to adversely affect the ecology within the protected area (e.g. interference with the migration routes of mammals or birds)

Yes______No______

5. Geology and Soils

Based upon visual inspection or available literature, are there areas of possible geologic or soil instability (erosion prone, landslide prone, subsidence-prone)?

Yes______No______

Based upon visual inspection or available literature, are there areas that have risks of large scale increase in soil salinity?

Yes______No______

6. Landscape/aesthetics

Is there a possibility that the project will adversely affect the aesthetic attractiveness of the local landscape?

Yes______No______

7. Historical, archaeological or cultural heritage site.

Based on available sources, consultation with local authorities, local knowledge and/or observations, could the project alter any historical, archaeological or cultural heritage site or require excavation nearby?

Yes______No______

8. Resettlement and/or Land Acquisition Will involuntary resettlement, land acquisition, or loss, denial or restriction of access to land and other economic resources be caused by the project implementation?

Yes______No______

9. Loss of Crops, Fruit Trees and Household Infrastructure

Will the project result in permanent or temporary loss of crops, fruit trees and household infrastructure (such as granaries, outside toilets and kitchens, etc.,)?


44

Yes___No_____

10. Noise pollution during Construction and Operations

Will the operating noise level exceed the allowable noise limits?Yes___No_____

11. Solid or Liquid Wastes, including Medical Waste.

Will the project generate solid or liquid wastes, including medical waste?

Yes____ No___

If “Yes”, does the project include a plan for their adequate collection and disposal?

Yes____ No____

12. Pesticides, Insecticides, Herbicides or any other Poisonous or Hazardous Chemicals.

Will the project require the use of such chemicals? Yes___No_____

If, “Yes”, does the project include a plan for their safe handling, use and disposal?

Each project to be implemented by a LG will be sub-jected to an environmental impact assessment/screen-ing. Using the screening form, environmental and so-cial checklists the proposed projects will be screened by their respective implementing LGs to identify any potential adverse impacts. For example, from a so-cial point of view if the screening form identifies land acquisition that would result into involuntary resettle-ment, then the required mitigation measure would be to choose an alternative land site or, the LG prepares an acceptable resettlement and compensation plan.

11.3 Main streaming Environment and Natural ResourcesTo ensure main streaming of environment and natu-ral resource management in LGs, the following will be done:

a) During the planning stage, environment mitiga-

tion measures will be identified for each project where negative environment impact is likely to occur and will be included in the investment profiles for implementa-tion;

b) The responsibility centre for implementation of the mitigation measures will be clearly indicated (this could be a contractor or a community);

c) During the preparation of the bid documents or the specifications, environment mitigation measures should be listed (item by item) in the Bills of Quantities or the specifications and each one costed by the con-tractor. These mitigation measures will be part of the total contact sum and will be executed by the con-tractor;No payment will be effected by the LG accounting of-ficer without a certificate to certify that environment mitigation measures have been implemented.


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12.0 INSTITUTIONAL ARRANGEMENTSRoles and Responsibilities for the LDGKey Stakeholder Indicative Roles and ResponsibilitiesMinistry of Local Government, Chieftainship and Parliamen-tary Affairs

• Propose the formulae for LDG distribution in liaison with MoF;• Reviewing and compiling consolidated District plans and reports ;• Preparation and Authorisation of release of funds to districts;• Coordinating the provision of hands-on support to LGs; • Mentoring and supporting the LGs;• Elaborate Operation and Assessment Manuals for LDG;• Organize and coordinate the annual performance assessment;• Support Districts to meet minimum conditions; • Monitor physical implementation of projects;• Analyse financial requests and reports for District and act promptly.• Prepare and submit progress reports to MoF, UNCDF and UNDP

Ministry of Finance • Open the LDG account through the office of the Accountant General;• Request districts to maintain a Cash book for LDG;• Capture LDG as part of national budget;• Ensure the transfer of LDG to the District Account ; • Conduct quarterly internal audits of LGs• Conduct Annual Audits for the LDG through the Office of the Auditor General ;• Ensure compliance to the financial rules and regulations• Rollout IFMIS

LGs • Develop Annual Development Plans and Budgets as a basis for LDG funding;• LDG management (procurement, physical and progress reporting and M&E)• Prepare financial reports on LDG expenditures on a monthly basis to MoLG• Prepare requests for LDG releases based on documented tranches and supporting documents to MoLG;• Raise own source revenue commitments to the LDG and ensure it is recorded in the LDG cash book;• Ensure accountabilities, transparency and participation is incorporated in LDG processes.

UNCDF and UNDP • Ensure timely transfer of LDG to the LDG account;• Lead programmatic and financial accountability for the funds received;• Conduct thematic studies and qualitative enquiries;• Review and recommend annual work plans;• Analyse opportunities and risks;• Provide strategic guidance;• Appraise the performance of the LDG in the respective areas and advise on further improvements as necessary.

Other Development Partners • LDG financing and Technical Assistance


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Key stakeholder Indicative Roles and ResponsibilitiesDDP Steering Committee • Oversight role of the LDG; Policy and strategic guidance;

• Approving budgets and annual work plans;• Document and discern lessons for informing the development of the Government intergovernmental transfer system;• Review progress and performance of the Programme

DDP Programme Technical Committee

• Advising on resource mobilisation strategy; • Vetting the results of the performance assessment; Provide technical support during preparation of the Minimum Conditions and performance measures; and • Proposing on annual basis the total purse for the LDG

Community members • Participatory identification of community needs;• Participation in validation of annual priorities in the district workplan and reporting meetings;• Participate in monitoring of project implementation;•Generate a demand for downward accountability from LGs.

Private Sector • Contract and general service provisionCSOs/NGOs • Community mobilization, civic education and capacity development;

• Complementary service delivery


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48

NOTES


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NOTES

Ministry of Local Government, Chieftainship and Parliamentary Affairs4th floor, Moposo House

Ms. Maselemeng MokoseDirector Planning

Telephone: (+266) 59002516 / (+266) 22327575Email: [email protected]

United Nations Development Programme (UNDP)Mr. Hoolo Nyane

Programme ManagerTelephone: (+266) 62773320 / 22313790

Email: [email protected]: www.undp.org

United Nations Capital Development Fund (UNCDF)Jenifer Bukokhe Wakhungu, PhD

Technical SpecialistTelephone (+266) 560 48 530 / 22313790

Email: [email protected]: www.uncdf.org

Documents

KINGDOM OF LESOTHO - UNDP€¦ · LDG Operational Manual for Local Governments 4 The LDG is a key component of the DDP which is striv-ing to work with local Authorities (LAs) and