SIPU Annual Report 2009

Page 1

ANNUAL REPORT 2009


Annual Report 2009 SIPU International AB


Dear Reader, This report is the story of SIPU International in 2009. It gives the facts and figures but also tells the human story behind the figures through some of our assignments around the world. We would love to hear from you! info@sipuinternational.se


SIPU International AB

“Having a sense of meaning, feeling that we contribute to a better world, is a very important driving force of our staff.�


Working for Results What are the driving forces in a company like SIPU international? What makes a SIPU consultant tick? According to our latest staff satisfaction survey having good co-workers, stimulating work tasks and having responsibility ranked highest among factors that make people enjoy working at SIPU. Salary levels were deemed much less important in this context. In other words, in our company it is important to maintain these factors in order keep motivation on top. We do this by decentralising day to day decision making to the lowest possible level. We put trust in our consultants and project managers, which generates initiatives, creates responsibility and spurs learning. Having a sense of meaning, a feeling that we contribute to a better world, is another very important driving force of our staff. The projects that we work in are important and our efforts make a valuable contribution. When you can see the fruits of your labour, regardless if you are a midwife, carpenter or a consultant, your work becomes meaningful. When we, as consultants or trainers, see results from our efforts, it makes our day. The results that are most obvious are not always the ones that are most important, however. Training a group of coastal villagers how to plant mangrove trees and sea grass may result in a very visible new forest of several hectares in size. Is this a result? Yes it is, but far more important are the almost immediate increases in income from crab fishing, and the long term effects of more sustainable income from fishing, and protection of the shoreline. These in turn strengthen the community’s own sustainability, robustness and resilience in the face of natural and economic shocks. Looking back later, measuring the specific contribution of the training to the long term results is difficult, maybe impossible. Other factors have also played a part. However, the consultant/trainer can do many things to maximise the probability of achieving long term impacts by keeping them, rather than short term outputs, in mind throughout the project cycle.

In Sweden, a heated debate is going on regarding results in development cooperation. In one corner we have the Minister for Development cooperation Gunilla Carlsson, seconded and supported by various bloggers and opinion makers asking questions about the actual impact, and whether taxpayers are getting the right bang for their buck. In the other corner, Sida and and its partners, including consultants like SIPU International, are trying to answer those questions. So far, both questions and answers leave room for improvement. But perhaps a continued debate will lead to a better understanding and a more constructive debate. The examples of ongoing or finalised projects in 2009, which are presented in this report has been written with this debate in mind. Special attention has been paid to the actual impact or results achieved. At the same time, they show the range of services SIPU International provides as well as our geographic coverage. 2009 was a year of transformation for SIPU International. We have made progress on many important fronts. We have made a breakthrough on the EC market by winning two substantial EC contracts during the year. At the same time, we have gone from word to action in terms of widening our business to include clients outside our traditional sector, development cooperation. We have also developed and consolidated a number of internal processes aimed at making us more robust and assuring quality in all stages of the production. This work is far from done, but it is steadily increasing our awareness and maturity in these realms. For all of the reasons above, I really enjoy working for SIPU International and I am looking forward to new results in the coming years.

Anders Olin Managing Director


SIPU International SIPU International is a Swedish consultancy and training organisation specializing in capacity building and institutional development in transitional and developing countries. We are one of Scandinavia’s leading consultants in the area of public service development. SIPU has a long history of successful implementation of technical assistance projects, with beneficiaries both in the public sphere and civil society. Our clients include National, Regional, and Local Governments, Parliaments and nongovernmental organisations, and the projects are commissioned by donor organisations such as Sida, the World Bank, the European Union and others. We strive to form long-term partnerships with our clients and are known for our high level of competency, quality of services and reliability. Since 2007, SIPU forms part of FCG Group in Finland. FCG is a multidisciplinary consultancy company covering a wide range of services, including training and international development consulting. FCG has subsidiaries also in Estonia, Romania, Bulgaria Russia and New Zealand. The FCG context provides SIPU with added financial strength and synergies with our sister companies.


Our History 1979

SIPU is established as a public agency for training of civil servants

1983

SIPU’s first steps on the international arena starts in Sub-Saharan Africa: Botswana.

1991

A cooperation between SIPU and the Mongolian Institute of Administration and Management Development begins, as SIPU’s first project in Asia.

1992

SIPU is privatized and SIPU International Ltd is established

1992

After the fall of the Soviet Union, SIPU starts to work in Central and Eastern Europe by supporting the creation of a new public administration in Estonia.

2001

The first project in Latin America is started in El Salvador.

2007

SIPU joins FCG Group


Our Services At SIPU International, three business groups cover the range of services. Each group handles their separate portfolios of projects and assignments in a number of defined business areas. Marketing, sales and production is done within each group, although cooperation across boundaries is common and encouraged in order to maintain flexibility and responsiveness in the organisation. Public Finance Management

Group contribution to 2009 turnover Other Sida

Administration

Other Commission European

27 % 38%

Sida European Commission

27 % 35 %

Managing Director

38%

35 %

Democratic Governance

Training Programmes

Democratic Governance Asia

14 %

8%

MENA

1%

Asia Africa

40 %

8% 1214%%

1% 25 %

MENA Latin America 40 %

Africa CEE & NIS Latin America Europe

12 % 25 %

CEE & NIS Europe

Popular control over public decision making and decision makers is often used as a definition of democracy. In practice, there are mediating values through which democracy is realized, such as; participation, representation, accountability, transparency, responsiveness, efficiency and equity. In SIPU’s business group for Democratic Governance the values and the rhetoric come to life through our interesting and challenging projects. In Mongolia thousands of civil servants have been trained to become better leaders, and in Bosnia we are involved in the promotion of small businesses. In Zimbabwe we work with the opposition on the local level to prepare the politicians for an active and constructive role in the development of their society, and we have had an extensive engagement in the effort to improve the rule of law in El Salvador. Our projects relate to the development of a modern public administration as well as an active civil society. Both are crucial in democratic governance.


Public Finance Management Public Finance Management (PFM) is about ensuring that resources are used effectively. A sound PFM system is a precondition for a long-term and sustainable poverty reduction, enabling the partner country to manage its own development. SIPU International is a leading PFM consultant providing policy analysis and advice to both donors and beneficiary countries. SIPU has also been involved in technical assistance to PFM reform programs such as Tax reform in Mongolia, Former Yugoslav Republic of Macedonia, Montenegro, budget reform in Kyrgyzstan, South Africa and Serbia, and strengthened financial control institutions in Sierra Leone, Ghana, and Bosnia and Herzegovina. Our services are increasingly being demanded in the preparation for programmatic support in line with the Paris and Accra agenda, and we carry out specialized studies such as public expenditure reviews and assessments.

Training Programmes SIPU believes that training is an important component for change and development, and we want to provide a learning experience that will make a difference. This business area is highly dynamic at the moment, and SIPU International is widening its range of training services to include open, market oriented short courses as well as formal education. The Sida contracted ITP (International Training Programmes) still dominates the portfolio. Already in our four ongoing ITPs, more than 500 professionals have gone through in-depth training and coaching for change management. In collaboration with academic institutions in Sweden and Vietnam, SIPU International has also established a successful Master programme on Public Sector Management in Vietnam. Furthermore, in 2009, we decided to use our training and international experience to create a platform for competence development for Swedish organizations active in development cooperation programs. SIPU Academy offers a number of tailor-made practical courses for practitioners and project managers. This first step into the Swedish market will be followed by others.


SIPU Presence 2009 During 2009, SIPU was working in more than 140 projects and as­ signments in 40 countries, including four International Training Pro­ grammes with participants from many more countries and regions all over the world. On this map all the countries in which we were active are marked with a dot, and some example projects are highlighted. Further on in this report you will find extended descriptions of a selection of projects. The projects are mainly funded by Sida, the EU, the World Bank and other major international donors.

Project: Review of Experiences of Swedish human rights and democracy support in Haiti. Country: Haiti Funding: Swedish International Development Cooperation Agency (Sida) Project period: Dec 2003 - June 2009

Project: The Second Urban Environmental Sanitation Project Country: Ghana Funding: World Bank Project period: July 2006 – April 2010

Project: CONAMU “Strengthening local capacity for insertion of gender in planning, budgeting and management of the municipal and sectional governments of Sucumbíos, Esmeraldas and Imbabura, Ecuador” Country: Ecuador Funding: Swedish International Development Cooperation Agency (Sida), KTS Project Period: June 2007 - Dec 2009

Our donor clients as percentage of 2009 turnover Other 7%

7%

Sida 39 %

WB, NORAD, AfDB) Other (SDC, European Commission 27 %

38%

Sida

54 %

39 %

European Commission

35 %

27 % 38%

54 % 35 %


Where we work (as % of turnover)

14 %

12 %

8% 14 % 1%

Project: Public Financial Management Training Country: Moldova Funding: World Bank Project period: May 2007 - June 2010

Project: Technical Assistance for Civil Society Organisations (TASCO) Country: Western Balkans and Turkey Funding: European Commission Project period: July 2009 – April 2011

8%

MENA 1% 40 %

12 % 25 %

Asia

25 %

40 %

Africa

Africa

Project: Training Mongolian Managers in Leadership Country: Mongolia Funding: Swedish International Development Cooperation Agency (Sida) Project period: Oct 2006 - Dec 2010

Project: Training Materials in Poverty, Gender Equality and Grassroots Democracy Country: Vietnam Funding: Ninh Binh PAR Project Project period: April 2009 - Dec 2009

Project: Human Resource Management and Institution Building and HIV / AIDS in the Workplace Country: South Africa Funding: Swedish International Development Cooperation Agency (Sida) Project period: Dec 2003 - June 2009

MENA

Latin America Latin America CEE & NIS CEE & NIS Europe Europe

Project: Kenya Municipal Programme Institutional Strengthening Assesment Country: Kenya Funding: Sida / Kenya Ministry of Local Governance Project period: Aug 2009 - Oct 2009

America

Asia


International Training Programmes Capacity building at the individual and institutional levels has always been at the heart of SIPU International’s operations. The forms and contexts have varied greatly. One of the most direct and structured capacity development mechanisms has been the Sida-financed advanced International Training Programmes (ITP). SIPU International has been awarded four such contracts since 2004, with a total of about 20 distinct training cycles.

The common aim of the ITPs is to increase capacity to promote and facilitate strategic change and institutional development in the participants’ organisations. Most immediately, change is achieved through specific projects for change that participants themselves implement during the training cycle. Common for all ITP is that training and individual coaching on project design and management is provided. The projects form a core around which the main topics are explored. They provide subjects for mutual discussion and support among the participants, and a means to enhance the impact of the training in the participants’ home organisations and countries.SIPU monitors the results of the training as perceived by the participants themselves. These results are often quite remarkable, and sometimes even surprising. In the following we let participents themselves comment on their experience.

“I have learned that it is possible to change masculine norms and create better understanding, tolerance and acceptance between men and women and between parents and children if we socialize and raise our children in a healthy and culturally sensitive manner.” Participant

The International Training Programme ‘Human Rights and Gender Equality’ has as its main objective to provide the participants with tools and concepts for how to promote human rights and gender equality, and gender mainstreaming. The programme is carried out as a global programme with participants from Ethiopia, Kenya, Tanzania, Laos and Vietnam. It has been duplicated into a programme for six countries in the Middle East and Northern Africa (MENA) region.

It is not only participants themselves that benefit from the training course. One Ethiopian participant started ‘peer education groups,’ and one member of that group commented:

“The network and my new friends have really given me new insights and ideas for my project. This is the most valuable part of belonging to the ITP training”.

Participant “I had wrong attitudes toward men who engaged in kitchen work. But I learned that we contributed to the nonexistence of gender equality. At this moment I have understood that a man who is confident and capable in kitchen work; he is the real man for me”. She also said that, “I am happy to be part of this group, because it allowed me to develop my skills of communication and confidence for my future relationship. I was restricted to openly discuss with my parents about any issue. Specially, “Because the methodolmy father was strict, he ogy employed in the prodo not allow us to be ourgramme is adaptable to selves. However, with the any institution, whether help of the discussion fopublic or private, its conrums organized on differtents are easily accepted ent issues now, my father in institutions, companies is changed. We are now and non-formal groups able to discuss any issues that welcome the openwith my family openly ness and participation which gave me courage that the programme aland confidence”. lowed us to learn”. Participant


River in Zambia

The International Training Programme ‘Local Environmental Management for Urban Areas’ starts two training cycles per year, one targeting African countries, the other Western Balkans and Eastern European nations. It provides a unique opportunity for local environmental professionals and managers to pick up new technology, working methods, and learn from colleagues in other countries. One participant led a change project with teachers, children and their parents to learn about and introduce energy saving technology in their school, lowering monthly electricity bills by 30% in the first month. Another worked on formulating and passing national legislation in Uganda regulating the use of plastic bags. In Zambia participants, one from a Forestry research institute and the other from a power corporation met on the course, found they were approaching a common concern from different perspectives, and started institutional cooperation to deal with mountains of sawmill wastes in peri-urban areas while developing cheap and effective stoves for poorer residents in informal settlements. A participant from Macedonia is establishing a new environmental management unit in his municipality, while another one from

Serbia is working to improve the conditions of three Roma communities that are involved in waste recycling. All SIPU’s International Training Programmes have developed networks for the participants to share information and exchange experience. One advantage of these networks is the mix of professionals from government, NGO and the private sector. For example, in Kenya a Gender “We have established NGO has developed from these relationships that go benetworks, and is now setting its yond the web, many of us own agenda outside the proshare dreams and tasks. gramme, and in Ethiopia a speFor example my group, cific association has evolved. that with small steps tries to meet at least 5 or 6 times a year, are establishing a NGO that soon will be our shelter” . Participant


Serving the citizens

Changing the way things work at the Attorney General In 2009, SIPU International concluded two long term projects at the Attorney General and the Supreme Court aiming at building public confidence in the justice system of El Salvador. The Attorney General project was a second phase of a previous initiative intending to improve the internal (electronic) communication. The Attorney General is the primary source for certificates of birth or marriages, and up until now the waiting periods have been long and the service uneven. In order to improve the quality of service the project aimed at mapping and improving its working processes. Another aim was to increase transparency and improve communication with citizens and make use of feedback data and public opinion about the quality of services. While a review and improvement of internal processes has been at the core of the project, equally important has been to work with the awareness and attitudes of staff. The methodology throughout the project has been based on learning by doing. Between training sessions, involved staff implemented assignments in their respective departments. Another critical success factor has been the creation of local working groups which have been the engine of the entire project. And unlike so many projects before, this project created mixed teams of legal officers and administrators, making the two categories of staff aware of their complementary roles in the organisation. Participants of project activities were exposed to issues, concerns, activities of the other departments which lead to a greater understanding among all of the context and purpose of the Attorney General as an institution.

Among the results achieved in the project, the following are noteworthy: • Working processes of the Attorney General have been described and documented; • Information is now more accurate and accessible, which makes work processes swifter; • A cadre of in-house trainers have been trained and they can now continue the work after the project is finished; • The Attorney General has a process for continually measuring the quality of its services; and • It has been shown that the Attorney General has improved its services to the population in terms of providing access to documents and issuing of certificates.

Project: Technical Assistance for the Modernisation of the Attorney General of El Salvador Location: El Salvador Funding: Swedish International Development Cooperation Agency (Sida) Project period: Feb 2008 - Dec 2009


Interview with Aída de Membreno Manager of the Planning Department of the Attorney General. What benefits / positive impacts has the project had on the Attorney General? -SIPU International’s systematic learning approach has been a key factor in achieving results which stand a chance of becoming sustainable. Through the new structures of communication and innovative working modalities, the Attorney General has become more transparent, effective and efficient. What benefits / positive impacts has the project had on users / citizens? - The Attorney General is now more focused on end users. We are working actively to improve services for users and with the website we have created new avenues of access to information. According to Aída de Membreno, Manager of the Planning Department of the Attorney General, the participatory and flexible work process provided by SIPU International, which actively engaged a total of 120 staff members, has been a critical success factor of the project.

Aída de Membreno


Sustainability Review of Visakhapatnam, India How does one measure the sustainability of a large, rapidly growing industrial city? Can cities be sustainable at all, given that most are dependent on resources beyond their control? Is sustainability as applied in such situations simply a case of improving the efficiency of resource use? SIPU International was assigned the task of conducting a sustainability review of Visakhapatnam, India’s busiest port by volume of goods handled, and a major steel, petro-chemical, pharmaceutical, naval and IT centre on the eastern coast, in the State of Andhra Pradesh.

near coast marine eco-systems that are the basis for the livelihoods of traditional fisherfolk. Introduction of light rail services will reduce traffic congestion, simultaneously reducing air pollution, and beyond that provide the basis for a healthier society.

The Swedish International Development Cooperation Agency, Sida, has been developing a special approach to urban development that aims at focusing on cities’ long term sustainability, particularly in the face of increasing competition for the world’s finite supply of material resources. The task given to SIPU was in part to test the applicability of the conceptual approach in a real situation.

Governance was a key focus. All identified problems could be traced back to shortcomings in institutional arrangements. And the advanced solutions based on inter- and intra-sectoral synergies are predicated on improvements in inter-institutional cooperation. The project arranged the first ever formal meeting between the National Railway authority and the State bus company to lay the foundation for future efforts to coordinate schedules, and capacities for the benefit of travellers and commuters.

SIPU’s team of 5 Swedish experts worked with an independently contracted Indian professor from Andhra University, and the Greater Visakhapatnam Municipal Corporation. A rapid review of recent development plans, and on-going programmes was followed by a large inter-sectoral workshop that identified a number of focal issues for more detailed study. These focal issues became the subject for additional workshops and investigations. Special attention was given to symbiotic linkages between sectors and sub-sectors. The city’s serious air pollution problem can be partially ameliorated by substituting fossil fuels with methane derived from organic waste, both liquid and solid. Not only will this also address a variety of waste management problems, it will also reduce Visakhapatnam’s emission of green house gases, and its dependence on imported fuels. The investment in improved sanitation and solid waste treatment will have additional benefits for the

The work also included a study tour by local politicians and senior municipal staff to Sweden to investigate appropriate Swedish approaches, technologies and possible twinning with a Swedish municipality. The result was a series of approved recommendations on future steps, and an interest in continued interaction with Swedish players.

Project: Sustainability Review for the City of Visakhapatnam Location: India Funding: Swedish International Development Cooperation Agency (Sida) Project period: Oct 2008 - April 2010


Tankers loaded with Petro-Chemicals


Strengthening civil society in Western Balkans and Turkey – our new project TACSO A strong civil society plays a key role in the European harmonisation process, representing as it does, a wide range of interests and alternative views in society. Civil Society Organisations (CSOs) can help transform their societies by promoting basic values of democracy, human rights, good governance and the rule of law. They can drive forward required reforms that will assist the countries concerned in their aspirations to become EU members.

The TACSO project is a large scale effort to support civil society in all eight IPA countries (see box). SIPU International, together with four European NGO partners was awarded this EC contract in 2009. An initial two year project period could be followed by an extension of the same duration. The project involves over 30 professionals in ten offices all over the region. Coordinated from a hub in Sarajevo, project activities span from training interventions to advocacy campaigns, covering both regional and national dimensions. Each country programme is firmly based in the local civil society context and is guided by an advisory board with stakeholder representation including national CSOs. This approach ensures that the programmes are relevant and addresses the actual needs and challenges of the CSOs in each national setting, and that the results are sustainable. Needs assessments conducted by the project show that currently CSOs have limited influence in decision-making processes. Concrete action will spur others and create a momentum to develop a common agenda and strengthen cohesion in the third sector.

What is IPA? The enlargement of the European Union has been pursued as the principal means of ensuring lasting peace and stability. Today, this strategy is focused on assisting the countries of South-East Europe for accession to the EU. The EU has created the Instrument for Pre-accesion (IPA) for this purpose. The instrument finances projects in Albania, Croatia, Bosnia and Herzegovina, Kosovo under UNSCR 1244/99, FYR of Macedonia, Montenegro, Serbia and Turkey.

Although there are many strong organisations, insufficient organisational capacity is common, especially among organisations in rural areas. The project has access to national, regional and international experts who assist the organisations in the further strengthening of their capacities. Thus, the project is able to reach out and provide assistance also to smaller organisations in remote areas.

Project: Technical Assistance for Civil Society Organisations Location: Western Balkans and Turkey Funding: European Commission Project period: Aug 2009 - Aug 2011


The city of Istanbul

The most advanced CSOs, based in capitals, and with developed programmes, benefit from regional meetings and trainings together with likeminded organisations from the other IPA countries and EU member states. Another important instrument of learning and information-sharing is the regional web portal with links to eight national Web sites. The main expected outcomes of this project are: • Strengthened capacity of CSOs to further their agenda, and thereby • Increased influence of CSOs in democratic decision-making processes;

The primary means of assistance are capacitybuilding activities such as trainings, e-learning, exchange of experience, advising, coaching, as well as networking activities and information events both at the national and regional level. The first training topics include fundraising for CSOs, developing and managing EU funds, advocacy and lobbying, civil participation in the decision making process and CSO management. The challenge is to find the complementary ground with other ongoing initiatives in order to avoid overlapping and duplication, as well as to design support schemes which are flexible enough to respond to both the needs of more advanced and the less developed CSOs.

• Improved capacity of CSOs in service delivery; • Strengthened cooperation and networking among the CSOs and between external stakeholders and CSOs; • Raised public awareness of civil society and its organisations.

For further information visit the project web site: www.tacso.org.


Improving accountability in Sierra Leone Capacity building at the Audit Service Sierra Leone (ASSL) The Civil war (1991-2002) caused the death of tens of thousands, displacement of millions and destruction of most of the country’s infrastructure. Huge progress has been made since. The country is now peaceful, democracy is slowly being re-established and the economy is growing. In spite of this Sierra Leone remains one of the poorest countries in the world and what has been achieved so far could easily be squandered by corrupt practices and bad governance. Effective public financial management, not least a functioning audit service is vital for accountability, good governance as well as for poverty reduction. Furthermore, a respected public audit function can effectively influence the political agenda and bring issues to the fore in a constructive manner, which facilitates public debate and decision-making. SIPU and the British firm PKF has since 2008 been involved in a capacity building project at the Audit Service in Sierra Leone (ASSL). By strengthening the ASSL’s capacity to conduct audits of the performance of the public sector and through more effective Parliamentary oversight of the audit results, the project aims at creating a more effective external scrutiny of how public resources are used at both a national and local level. The main focus has been on on-the-job training directed mainly to managers and division heads. SIPU’s consultants have delivered training to staff in their respective divisions and helped the ASSL to develop and implement adequate audit methodologies. A mentorship model has been developed, in which the consultants help their counterparts to apply the methods they have been taught from manuals and training courses. This has made it possible to reduce the time it takes to go through the different steps of the audit process. It has also clarified responsibilities and made it easier to identify training needs. In financial audit, the main aim has been to improve audits of local councils and parastatals. New methods have been developed and they have been implemented uniformly. Manuals with concrete guidelines for the audits of parastatals have also been developed. In performance audit a draft manual has been compiled which guides the auditors through the performance audit process and will be revised in line with experiences gained. A new format for documentation of working papers has been established and implemented.

The project has already increased the level of competence and helped to improve quality and reduced the time for completing the work. The annual report of ASSL for 2008 was completed and tabled in parliament before the end of 2009, and the first ever Performance Audit Report has been finalized for tabling in parliament. The report identifies a number of problems in Sierra Leonean schools and comes up with a number of recommendations for change. The responsible ministry has accepted the criticism, but whether they will act on it remains to be seen. A foundation has been laid for further performance enhancement of the ASSL. It is being strengthened by new recruitments and improved office facilities and close contacts have been established with the Public Accounts Committee of Parliament. DFID has also announced that it will continue its support to the Audit Service Sierra Leone for another three years starting in July 2010. For more information see the website of the Audit Service Sierra Leone http://www.auditservice-sl.org/

Project: Support to the Audit Service, Phase I - III Location: Republic of Sierra Leone Funding: UK Department for International Development (DIFID) Date: Juni 2008 – May 2010


Peaceful street in Sierra Leone


Public Finance Management Support to Municipalities in FYROM The Former Yugoslav Republic of Macedonia (FYROM) has been moving towards EU-membership since 2001; getting a step closer by each reform of the public administration and its activities. Decentralisation is a key aspect of EU-alignment as well as democratic transition overall. By devolving responsibility to the municipalities, the power comes closer to the citizens and their needs. But this also implies a number of new and sometimes challenging tasks for the municipalities.

An ambitious decentralization reform programme started in 1999, and since then an increasing number of municipalities find themselves in charge of managing schools, healthcare institutions and cultural sites and heritage as well as physical planning and much more. The capacity of the municipalities, especially the small ones, to take on all the newly devolved tasks and responsibilities is limited both from a financial and administrative point of view and this is where SIPU comes into the picture. Commissioned by EU, a team of SIPU-consultants supported the Government of Macedonia and specifically the Ministry of Finance to assist the municipalities that experienced difficulties. The immediate objective of this project was increased capacity in the area of tax administration, budget management, accounting and internal audit, all for the sake of facilitating the municipalities in mastering the challenges of decentralisation.

SIPUs capacity building methodology is firmly based on a learning-by-doing approach, in which the specific needs and context of the beneficiaries is key. Therefore, the trainings in the project were all on-the-job trainings and specifically tailored workshops, working in close interaction with the trainees in the municipalities. In the end, 87 tax administration officers, 75 budget officers, 31 accounting officers and 31 auditors were trained in their respective fields. A number of manuals for procedures were developed or updated and important administrative procedures harmonized all over the country. One of the concrete results of the project was that 17 of the 34 municipalities in question became capacitated enough to enter into the next stage of the decentralisation process. The other half has undergone important developments, but is struggling with arrears and will probably not be able to go further in the process without political measures being taken.

Project: Public Financial Management Support to the Municipalities Location: FYR Macedonia Funding: European Commission Project period: April 2008 - March 2009


Training session in the project Public Finance Management Support to Municipalities in FYROM



















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