Income Generation Activity (IGA)
Grant Management and Implementation Manual
EDUCATION QUALITY IMPROVEMENT PROGRAMME IN TANZANIA
EQUIP-Tanzania
TheUnitedRepublicofTanzania
President’sOffice–RegionalAdministrationandLocalGovernment
MinistryofEducationandVocationalTraining
FundedbyDepartmentofInternationalDevelopment(DFID)
Glossary
DC DistrictCouncil
DED DistrictExecutiveDirector
DEO DistrictEducationOfficer
DFID DepartmentforInternationalDevelopment
EQUIP-T EducationQualityImprovementProgrammeinTanzania
FO FundOfficer,EQUIP-T
IGA IncomeGenerationActivity
LGA LocalGovernmentAuthority
PTP ParentTeacherPartnership
REO RegionalEducationOfficer
SC SchoolCommittee
SDP SchoolDevelopmentPlan
WEO WardEducationOfficer
Education Quality Improvement Programme in Tanzania
IGA Grant Management and Implementation Manual – page 2
1 Introduction
ThisManualhasbeenpreparedtoassistSchoolCommittees(SC),Teachers, ParentsandCommunitiestoeffectivelymanageandimplementtheIncome GenerationActivity(IGA)Grant,onintentionofdevelopingaprofit generatingbusinessthatsupportschools.
TheIGAGranthasbeenintroducedtosupportIGAinitiativesattheschool level.ThegrantwillbeprovidedanddisbursedbytheresponsibleLocal GovernmentAuthority(LGA)tospecificqualifiedschools.
TheIGAisaschoolbasedinterventionwhichaimsto:
Developpupils’lifeskillsandunderstandingofabusinessenvironment, aswellasgainingsubjectknowledgefortheactivity;
Generateadditionalschoolrevenuewhichcancontributetoimplement theactivitiesidentifiedintheSchoolDevelopmentPlans(SDP);
Enhance the effectiveness and the motivation of the voluntary School Committees;
Improvetherelationsbetweenschoolsandthecommunity,and;
Learnhowtoeffectivelymanageschoolgrants.
2 Eligibility and Size of the IGA grant
Every government primary school in the 51 target districts within the seven regions of Dodoma, Kigoma, Simiyu, Shinyanga, Tabora, Mara and Lindi can applyfortheIGAgrant.
TheIGAGrantwillbedisbursedtoschoolsasaone-timepayment.
The maximum grant valueis TZS 1,500,000.Thiswillbepaidtoamaximum of50%ofschoolsthathavereceivedIGAtrainingandsubmitteda successful business proposal totheDEOoffice.
3 Cycle from design to implementation of the IGA grant
Theentirecyclefromdevelopingtoawarding,implementing,andmonitoring theIGAGrantisdepictedinthediagrambelowandelaborateduponinthis chapter.
I. Training and submitting IGA business proposals by schools:
Provide IGA training to all EQUIP-Tanzania primary schools (4 school representatives), all WEOs, and eight DEOs in each of the 51 EQUIP-T LGAs.
Development of business proposals based on EQUIP-T training guidelines,followingtheformatasprescribedintheapplicationmanual distributedtoalleligibleprimaryschools.Thisformatincludesasetof questions in relation to the relevance of the IGA intervention, its marketability,sustainability,andprofitability.
II. Reviewing and scoring IGA business proposals by LGAs and validation by Regional Secretariats:
SchoolssubmittheirbusinessproposalstotheLGAoffice.
The DEO office team assess the proposals. The assessment is made by trained LGA officers who score IGA proposals submitted by schools. The scoring is based on established criteria following the IGA applicationmanual.
The LGAs recommend 50% of the schools to qualify for the IGA Grant. The LGAs will forward the recommended business proposals to the Regional Secretariat to validate and endorse the recommended proposals.
In case of any observations, the Regional Secretariats will provide written comments against LGA recommended individual business proposals.Thesecommentswillneedtobeaddressedbeforethegrant canbereleasedtotheseschools.
III. Compliance Assessment by Fund Officers:
ToensuretheabovestepswerefollowedineachLGA,andtohighlight the importance of the activity, all EQUIP-T Fund Officers conduct a complianceassessmentontheIGAreviewandselectionprocess.
This compliance assessment is based on a sample review of business proposals (25% of recommended and 12.5% of rejected proposals) with the aim to assess whether the LGAs and Regions have correctly
applied the selection criteria and recommended viable commercial activitiesforonwardgranting.
IV. Feedback Loop:
EQUIP-T Fund Officers will report on their findings to the Regional Secretariats. This will not include specific references to individual business plans, as the compliance assessment is sample-based. However, the reports may contain general guidance to be addressed before the grant can be released (e.g. on type of projects/review processetc.).
Regional Secretariats will inform LGAs on the outcome of their own assessment and on any critical issues reported by the EQUIP-T Fund Officers.
LGAs will get back to those schools that require strengthening of their business proposals as advised by the Regional Secretariat and/or throughtheFOscomplianceassessments.
SchoolswithsupportfromtheLGAs(WECs,DEOs,TradeAdvisers,etc.) will be given an additional 10-days’ time to strengthen their business proposalsandresubmitthesetotheirLGA.
LGAswillforwardtherevisedbusinessproposalstotheRegional Secretariats,whowilleitherrecommendorrejectthese.
EQUIP-TRegionalOfficewillprovidesupporttotheLGAandRegional Secretariatduringallstagesofthisfeedbackprocess.
V. Announcing and registering the Grant:
RegionalSecretariatsformallyannouncetheschoolsthatwillbe providedwiththeIGAGrant.TherespectiveDEOswillcommunicate theresultstotheschoolsandreturnthesuccessfulproposalsand associatedscoringtothem.TheDEOandREOwillretainonecopyof theIGAproposaltobeusedtomonitorIGAactivitiesandspending.
RegionalSecretariatswillalsoissuealettertoallschoolsthathavenot beenqualified.Theproposalwillbereturnedtotheschoolwith
associatedscoring.Schoolsmaydecidetocontinueimplementationof theIGAproposals,thoughthe(start-up)fundingwillnotbeprovided byEQUIP-T Fundingfromothersourcescouldbesoughtfor implementationoftherejectedIGAproposals.
RegionalSecretariatswillprovideacopyofthefinalresultstoEQUIP-T highlighting all schools that have qualified and will receive the IGA grants.
Thelistofallqualifiedschoolswillalsobeannouncedinthelocal newspaper(listofqualifiedschoolonappendix1)
VI. Training on Grant implementation:
BeforereleasingtheGrant,WEO/WECwillorganisetrainingforthe SchoolCommitteesoftheselectedschoolsonhowtomanageand implementtheGrant.
ThistrainingwillbebasedontheGrantManagementand ImplementationManualandrelatedmonitoringguidelinesandtools issuedbytheProgramme.
VII. Releasing the Grant:
All IGA Grants with a maximum amount of TZS. 1.5 million. Will be transferred as a one-time payment from the LGAs to the school CapitationGrantBankAccount
VIII. Monitoring the Grant:
MonitoringtheIGAGrantwillbedoneatvariouslevels,including:
o SchoolCommitteemonitoring
o WEOmonitoring
o LGAmonitoring
o RegionalSecretariatmonitoring
o EQUIP-Tanzaniamonitoring
Rolesandresponsibilitiesforthesestakeholdersareelaborateduponin chapter8.
4 Activities supported and not supported by the IGA Grant
The IGA grant will be used to support activities highlighted in the school business proposals and related budgets. If any major changes occur to the approved activities and budget they require approval from the School CommitteeandDEOoffice.
ExpensesonqualifiedIGAbusinessproposalsmayinclude:
√ PurchaseofmaterialsorequipmentfortheIGA;
√ ProcurementofservicesfortheIGA;
√ DevelopmentofinfrastructurerelatedtotheIGA;
√ Purchase of inputs like seeds, fertiliser or livestock and pesticides;
√ Purchaseofstock,likesuppliesforshops,and;
√ AnyotherexpensesasreflectedintheIGAbusinessproposals.
Profit from the IGA may be re-invested in the IGA or spent on any item approvedbytheSchoolCommittee,inlinewiththeschooldevelopmentplans (SDP).
The IGA grant should not be used for anything that is not supporting the developmentoroperationoftheIGA,suchasthefollowingactivities:
No payments related to activities that are not part of the recommended IGA business proposals, unless agreed by the SchoolCommitteeandDEOOffice;
No payments that have not followed the payment process as describedinchapter5B;
No purchase of school or academic supplies not directly supportingtheIGA,and;
No paymentsorgiftstoteachers,Districtofficers,schoolstaff, WardEducationOfficer(WEO)andothergovernmentofficials.
5 How to release and use the IGA grant
Once schools received the information from the LGAs that their business proposals have been recommended for the IGA grant (Appendix 1), the followingarethestepsthatschoolsshouldfollow:
A.ReleasingtheGrantfromLGAstoSchools:
i. TheHeadTeachershallcompleteaFundsRequestForm(Appendix 2A) requesting for the full amount of funding (in most cases the max. amount of TZS. 1.5 mln.). This Fund Request Form will also need to be signed by the SC Chairperson before forwarding to the DEO.
ii. TheDEOwillsigntheFundRequestFormtoapprovethefunds.
iii. The DEO Office will transfer the full IGA amount to the school CapitationGrantBankAccount
B.UsingtheIGAGrantbySchools:
i. TheSchoolCommittee(SC)willreportonprogressandspendingof theactivitiesfinancedthroughtheIGAGrantthroughtheQuarterly SCmeetings.ItisadvisedfortheWEOtoparticipateinthese meetingsasanobserver.
ii. Duringthesemeetings,theSCwillalsopresentontheupcomingIGA activitiesandrelatedbudgetforthenextquarter. Theseactivities andbudgetwillfollowtheIGAbusinessproposal.Ifnot,the proposedactivitiesandbudgetrequireapprovalfromtheSCand DEOoffice.
iii. TheSCChairpersonwillendorseproposedactivitiesandapprove theIGAfundingrequest.AllproposedIGAactivitiesandspending shallberecordedinthemeetingminutesoftheSCmeetings.
iv. BasedontheapprovedactivitiesandbudgetfortheIGAactivities forthenextquarter,theHeadTeachershallcompletea Fund Request Form (sampleattachedinAppendix2B).
v. TheSCChairpersonwillsignthe Fund Request Form toapprove thefunds.
vi. TheHeadTeacher/teacherinchargeofschoolfinanceswillthen prepareapaymentvoucherandachequeandgetthemsignedby theChairpersonoftheSchoolCommittee;
vii. TheHeadTeacher/teacherinchargeofschoolfinanceswillcashthe chequeandprocesspaymentstosuppliersorserviceprovidersand obtainreceipts/taxinvoices;
viii. TheHeadTeacher/teacherinchargeofschoolfinanceswillfileand keepthepaymentsupportingdocuments,includingthepettycash vouchers,fundrequestforms,SCmeetingminutes,andreceipts/tax invoicesinachronologicalorder.
6 Record keeping for the IGA grant
The Head Teacher/ teacher in charge of school finances will maintain the followingrecordsonreceiptsanduseoftheIGAgrant:
i. A Separate Cashbook: for recording of both Income and Expenditure. As pre-printed cashbooks are available, each school is expectedtopurchasethecashbookfromstationaryshops.Asample oftherecommendedCashbookisattachedinappendix3,and;
ii. Quarterly Bank Reconciliations: this will require the Head Teacher to obtain hard copies of bank statements on a quarterly basis to be reconciled with the Cashbook. A template of the Bank ReconciliationStatementisattachedinappendix4.
7 Reporting for the IGA grant
ThefollowingshallbethereportingprocedurefortheIGAgrant:
i. At the end of each quarter, the Head Teacher will complete the Quarterly School Financial Report attached as appendix 5. This includes information on budgeted amounts and actual income/expenditure for the IGA Grant The Quarterly Bank Reconciliation Statement forIGAshallbeattachedtotheReport.
ii. The SC Chairperson will sign the “remarks column” against IGA activities to certify the reported goods and services have been received,qualityisacceptable,andexpenditureiscorrect.
iii. The Head Teacher shall forward the Quarterly School Financial ReporttotheSCChairpersonandlaterontoWEOforreview.
iv. WEOwillforwardtheQuarterlySchoolFinancialReportto theDEO for approval and return a copy to the Head Teacher for record keepingandlearning.
It is important that schools convene quarterly meetings. During these meetings, the income and expenditure of the IGA activities need to be discussed, administered and reported. For transparency reasons, the IGA project activities, expenditure, and income (profit) will also need to be displayedonthenoticeboards.
Anyprofitgenerated,willneedtobeusedtoimprovethequalityofeducation inthespecificschool.Useofthisprofitneedstobereportedon.Theprofitcan be used for either: (i) reinvestment to the IGA interventions, or; (ii) implementationofactivitiesthatarerelatedtotheSchoolDevelopmentPlan, andapprovedbytheSchoolCommittee.
8 Roles and responsibilities on managing the IGA Grant in Schools
WhenimplementingtheIGAGrant,thevariousstakeholdersshouldperform thetasksasidentifiedbelowinordertofacilitatetheeffectiveandefficiency wayofrunningBusinessesatschool:
1. School(HeadTeacher,SchoolCommitteeandPTPmembers)
HeadTeacher/teacherinchargeofschoolfinance:
o RequestforthemaximumallocatedIGAgrant(mostcases TZS1.5million.)toDEOOffice,usingtheFundRequest Form,Appendix2A.
o Timelycompletionofthequarterlyschoolfinancialreport.
o MaintainanupdatedCashBookandquarterlyBank ReconciliationStatement.
o Preparemeetingminutesofthequarterlyschoolcommittee meetings.
o DisplayIGAactivities,expenditure,andprofitontheschool noticeboard.AlsoindicatehowtheIGAprofitwillbeused (e.g.reinvestinIGA,orimplementationofactivitiesrelated totheschooldevelopmentplan).
o Responsibletoproperrecordkeeping,documentationand reportingontheprogressoftheschoolproject
SchoolCommittee:
o EnsuretimelyandqualityimplementationoftheIGAGrant followingthebusinessproposal.
o UseIGAGrantinlinewiththeproceduresmentionedin Chapter5B.
o ConvenequarterlySchoolCommitteemeetings.
o SignoffonIGAactivitiesmentionedinthequarterlyschool financialreport.
o Analyseandapprovingthebudget
o Monitorandevaluatetheprogress
2. WEOrole
VisitqualifiedschoolstogetherwithLGATradeOfficersoonafter releasingtheIGAgrantstotheschools.
Duringthisvisit,supportandtraintheSchoolCommitteeson howtousethisGrantManagementandImplementationManual.
MonitortheIGAactivitiesduringimplementation(includingthe processestobefollowedasoutlinedinthisManual)
Quarterlyreportandevaluate progressionofIGAinschooltothe districtofficialFollowingthedesignedWEOmonitoringtools
3. LGArole(DEO/LGATradeOfficer)
Signoffontheone-timeIGApaymentforrecommendedschools
VisitqualifiedschoolstogetherwithWEOsoonafterreleasingthe IGAgrantstotheschools
ProvideadviceonhowtobestimplementtheIGAactivitiesfrom atechnical/marketingpointofview
Providefollow-upsupportoncasetocasebasis(e.g.forthose schoolslaggingbehindinimplementation,funddisbursement, and/ormakinglimitedornoprofit.)
Reviewandsignoffonquarterlyschoolreportsandfollow-up whennecessary(throughWEOs)
CoordinateexchangeofexperiencesonIGAGrantsamongschools (e.g.throughsharingbestpractices)
4. RegionalSecretariat(REO/RegionalTrade/CooperativeOfficer
Conductmonitoringvisitsaspartofregularactivitiesandreview implementationofIGAstatusduringthesevisits
Providetechnicalsupporttoselectedschoolsandfollow-upon casebycasebasis.
IdentifylinkagesbetweenvariousIGAactivitieswiththeaimto addadditionalvaluetotheDistrictandRegionalindustries.
ProvideoversightroleofmaintenanceoftheIGAgrantsinschool
5. EQUIP-T(RegionalOffice/FundOfficers)
PreparetheIGAGrantManagementandImplementationManual
ProvidetrainingtoWEOsonhowtousethismanual,withthe objectiveforWEOstotrainandsupportSchoolCommitteeswith effectiveimplementationoftheIGAGrant.
ConductregularmonitorandsupportvisitstoRegional Secretariats,LGAs,andschools,toverifyIGAGrant implementationprogress.