Summary of Technical FM Discussions for Kenya Social and Economic Inclusion Project & Kenya National Safety Net Program February 4 - 9, 2019 I. Introduction 1. As part of the overall mission for the Kenya Social and Economic Inclusion Project (KSEIP) & National Safety Net Program (NSNP) technical discussions were held related to financial management (FM). The primary purpose for the FM discussions were to (i) take stock of the progress made in the implementation of the agreed critical FM actions detailed in the Consolidated Action Plan (CAP) for the NSNP; and (ii) review the FM implementation arrangements for KSEIP and agree on an action plan and implementation support to further progress the KSEIP implementation. II. Key Findings 2. The following are the highlights and key messages from the discussions: Priority FM Action Items from CAP (NSNP) 3. It was noted that important progress has been made on most of the progress indicators of the Priority FM actions (see Annex II) and it was noted that SDSP has achieved 80 percent of the agreed actions (DLI11 under NSNP) and SDSP is in the process of formally submitting the evidence to National Treasury for onward transmission to the World Bank by February 22, 2019. Another 10 percent has been achieved and evidence is expected to be submitted by end of March. The following is the status of the actions achieved: (a) Reconciliation Module (Action item # B.2 to B.4): The design of the new Consolidated Cash Transfer MIS (CCTP-MIS) now include a reconciliation module. A review of this module was undertaken in a test environment using sample data and also live data, and it appears that it serves the intended use. It takes into account clawback amounts, funds requested, beneficiary payments (successful payments), commissions and ending balances as per the MIS. These balances are compared with balances as per the bank statements of holding project accounts for each of the PSPs and any differences explained. Task B.1 (FM Manual for NSNP) was already completed and verified in the previous missions and disbursements has already been made against the DLI. After verification of the evidence submitted by the Ministry for the Completion Indicators in relation to tasks B.2, B.3 and B.4 during the mission, MLSP is entitled for an additional 25 percent of the funding assigned to DLI 11. (b) PSP Contracts (Action item # E.1): The new contracts signed with the multiple PSPs adopts a performance-based formula to calculated commissions to PSPs. Commissions will only be paid to PSPs when beneficiaries have withdrawn their entitlements wholly or partially. Ministry compiled the evidence to support this and the completion indicators were successfully verified by the World Bank during the mission. After verification of the evidence submitted by the Ministry for the Completion Indicators in relation to this task during the mission, MLSP is entitled for an additional 8 percent of the funding assigned to DLI 11. (c) Payments to Un-carded Beneficiaries (Action item # G): Under the old payment model, there were instances where payrolls to KCB would include un-carded beneficiaries leading to loss of funds in form of commissions paid to PSPs for funds that will not be collected given that the related beneficiaries do not have payment cards. Under the new payment model, the key requirement in place is that payment cannot be made to a beneficiary if they do not have an active bank account. After verification of the evidence submitted by the Ministry for the Completion Indicators in relation to this task during the mission, MLSP is entitled for an additional 3% percent of the funding assigned to DLI 11. d) Amendment in the Payment Procedures (Action item # H): The procedure has been duly amended in the polices and procedure manual to included only those benefits who have bank accounts. The same workflow has been incorporated in the new CCTP-MIS. The manual was approved last year and the CCTP-MIS is now in live environment. After verification of the evidence submitted by the Ministry for the Completion 1 Indicators in relation to this task during the mission, MLSP is entitled for an additional 3 percent of the funding assigned to DLI 11. 4. In addition to the achieved actions, it was also confirmed that the following actions have been partially completed: (a) Deployment of the Project Accountant and Payment Officer (Action item # C.1 to C.4): Some progress under this action item has been reported. However, no withdrawal can be claimed until all tasks are completed under this action item. The current status is as follows: - i. HR Plan (task C.1) and the job descriptions (task C.2) of the existing and proposed positions have been developed. Two assistant payment officers have been engaged and are assisting the Payments Officer in the Payments function (task C.4). Evidence for C.1 and C.2 has been submitted while for C.4 will be presented by March 31, 2019. ii. The mission reemphasized that it is critical to have a full-time deployment of the Project Accountant and Payment officer to SAU (task C.3). The Head of Accounts has indicated that the Ministry Accounts department is currently understaffed and as such cannot deploy the current Programme Accountant on a full-time basis. Similarly, a letter for full-time deployment of the payments officer is still pending. SAU agreed to follow up with the HR unit of the Ministry to have the letter finalized by March 31, 2019. (b) Improvements in the Existing MIS (Action item # D.1-D.7): Progress on many tasks under this action item has been reported. However, no withdrawal can be claimed until all tasks are completed under this action item. The current status is as follows: - i. The task D.1 (Pre-payroll review enhancement to include National Single Registry data validation) is ‘Achieved,' subject to submission of evidence for task completion. A draft pre-payroll verification protocol including validation from the national Single Registry data is in place in the MIS. Evidence to support task completion will be compiled and submitted to World Bank by March 31, 2019. ii. The tasks D.2, D.3 & D.4 (secure data transfer with PSPs) is ‘Achieved,' subject to submission of evidence for task completion. Under the new CCTPMIS, payroll data files are shared through a secure portal using a checksum process that eliminates exchange through emails and loose data sets. Payrolls are now fully encrypted when being sent to service providers. Data updates to the MIS by PSPs is real time using an API including transfer to the beneficiary accounts and account numbers of the new beneficiaries. Because of the improved process for funds transfer, the payrolls will only include those beneficiaries who are carded given that payments will be made directly to beneficiary bank accounts and a prerequisite for this in new solution is beneficiary to be issued with a card. Also, new CCTPMIS has been designed such that beneficiaries without active bank accounts will be flagged up as exceptions and will therefore not filter into the payroll. Evidence to support task completion will be compiled and submitted to World Bank by March 31, 2019. iii. The task D.7 (MIS HR Assessment) is ‘Achieved,' subject to submission of evidence for task completion. MIS Strategy has been developed and approved. Documentation exists addressing system access rights, formal user authorization mechanism, and MIS Database controls. Besides, Training Needs Assessment for SAU, including MIS, is already done for existing staff and a framework proposed for future engagements. There is also a training/ capacity building plan for SAU is in place. Evidence to support task completion will be compiled and submitted to World Bank by March 31, 2018. iv. Implementation of remaining tasks namely D.5 (Disaster Recovery Management Plan) and D.6 (Succession planning for MIS) require support from development partners. A formal TA request to the development partners will be made by the Ministry by March 31, 2019 and agree on a completion time lines of before June 30, 2019; (c) Internal Audit (Action item # F.1 to F.3): Some progress under this action item has been reported. However, no withdrawal can be claimed until all tasks are completed under this action item. The current status is as follows: - i. The Training Calendar (Task F.1) was prepared for 2017, but it was never submitted formally. It has been now agreed that a three-year calendar (2018-2021) will be made which will be reviewed 2 from time to time and the same will be submitted as evidence of completion for this task by March 31 2019. ii. The Audit Committee (Task F.2) has still not been constituted. The Ministry should take immediate steps to ensure the timely appointment of the Audit Committee. The new date for the task completion is June 2019. iii. The Principal Secretary has notified process for obligating the funds for the internal audit by the Principle Secretary. Therefore, the status for Task F.3 is ‘Achieved,' subject to submission of evidence for task completion. Evidence to support task completion will be compiled and submitted to World Bank by Match 31, 2019. 5. It was agreed that the Ministry would continue to work intensely towards achieving the FM actions and adhere to agreed deadlines. The most immediate action agreed is to compile all the evidence for completed actions (full or partial) and submit them to the World Bank by March 31, 2019, for approval to enable disbursement and for record purposes. 6. Adoption of the New Payment Protocols: The first payroll for the three NSNP programs using the new MIS and the new payment protocols will be processed in February 2019. 7. As agreed during the previous mission, the Tier one (1) reconciliation using the previous payment mechanism with KCB and ECB have been completed covering the period from January 2018 to December 31, 2018. The Ministry will submit the reconciliation to the PSP’s by February 15, 2019. This will conclude the ‘financial closure’ of current accounts with the PSP using the previous payment mechanisms and allow the PSPs to start a “Clean Slate’ before using the new payment mechanism, where the tracking of payments is limited to the transfer of funds to the beneficiary account, and no beneficiary withdrawals are recorded in the system. 8. Agreements on Action Items to be included in Extended Comprehensive Action Plan (eCAP): Building upon the excellent learning experience from the implementation of the CAP which is now 80% complete and expected to by 95% complete before June 2019, there is a need to agree on additional tasks that are required to enhance transparency, accountability and efficiency of the FM systems. The Ministry is in the process of drafting an Extended Comprehensive Action Plan (eCAP) while keeping the procedure for monitoring the progress the same as for the original CAP, i.e. using progress and completion indicators. 9. During the mission, the WB FM team met senior representatives of the Ministry from the MIS team, WFP, Development Pathways (software development firm for CCTP-MIS funded by WFP) and OPM (TA firm for Social Protection funded by DFID). Following tasks have been identified during our discussion to be part of the eCAP: (a) Enhancements to the Tier-2 Reconciliation: The MIS is now operational in live environment. Certain enhancements have been agreed in the system to give added support to the end user during processing of the payroll. This includes, introducing the concept of ‘Unreconciled’ difference in the Monthly Activity Report. This will allow the report to be processed any time and the unreconciled difference can be monitored regularly until the difference is zero and the Payroll can achieve the status of ‘financial closure’. This task is proposed to be funded by WFP and a formal request will be submitted by February 19, 2019. (b) Payroll Verification: To give added information about the current payroll at the time of payroll approval, it is recommended that the system should create a report reconciling the current payroll with last processed payroll. This will allow the approver of the payroll to get additional insight to the data by comparing what has changed since the last payroll was processed. This task is proposed to be funded by WFP and a formal request will be submitted by February 19, 2019. (c) NSNP Program Dash Board: The need of a program dashboard by combining the transactional level data of all cash transfer programs under NSNP using Business Intelligence (BI) technology for big data has been long felt to improve monitoring of the program and support evidence-based decision making for the program. Now that the ministry has the new CCTP-MIS operational this is just the right time to roll out the dash board. The Ministry is very keen to take this forward. This task is proposed to be funded through the TA firm (OPM) hired by DFID and a formal request will be submitted by February 19, 2019. 3 10. Below is a list of people who participated in these technical discussions. Progress update on CAP based on the feedback and agreements reached during the mission is attached as Annex-I. FM discussion participants Name Organization Mr. James Odour CEO, NDMA Mr. Sidney Achia Payments, SAU Mr. Hashim Adan Director Corporate Services, NDMA Ms. Patricia Mumo Ag. Finance Manager, NDMA Mr. Franklyn Makhulu MIS, SAU Mr. Paul Njoroge MIS, SAU Mr. Moses Muga Accountant, ML& SP Mr. Brian Magara Payments, SAU Mr. Stanley Waweru MIS, SAU Mr. Timothy Njoroge MIS, SAU Mr. Boniface Kibicho Development Pathways Ms. Consolata Nkatha Development Pathways Mr. David Kamau WFP Mr. Fred Mertens OPM Ms. Agha Hussein World Bank Consultant Mr. Charles Kabuthu World Bank Consultant Ms. Emma Mistiaen World bank Mr. HenryAmuguni World Bank Ms. Nadia Selim World Bank 4 Annex I: Priority FM actions – Status Update (80% Complete) Achieved (Previously or during this mission) Achieved (Previously or during this mission) – Pending evidence compilation Pending and submission A: Reconciliation of the Payroll # Tasks Assigned Time Progress Indicators Status update Completion of reconciliation of the backlog in Program September Reconciliation statements duly signed Previously Achieved A.1 the Kenya Commercial Bank (KCB) holding Accountant 30, 2017 by: bank account from the inception of the • Respective ICT Accounts Evidence submitted to the World program and initiation of periodic Head (Nyaoke & Allan) from Bank reconciliation of each payment cycle. PSPs • Head of Social Assistance Unit (SAU) A.2 Completion of beneficiaries’ level Program Reconciliation statements duly signed reconciliation between the payroll and the Accountant by: PSPs for the backlog and initiation of a • Respective ICT Accounts periodic process for each payment cycle going Head (Nyaoke & Allan) from forward. PSPs • Head of SAU A.3 Resolution of the reconciliation differences Program September Financial Closure for the payroll Previously Achieved with each PSP to manage the financial closure Accountant 30, 2017 jointly signed by: Evidence submitted to the World of the past payrolls and initiation of a periodic • Respective ICT Accounts Bank process for each payment cycle going Head (Nyaoke & Allan) from forward. PSPs • Head of SAU A.4 Management decisions available on: Head of July 31, Official Notification from SAU Previously Achieved a) Policy on the beneficiaries benefiting Targeting, 2017 specifying policy decision on each from more than one cash transfer SAU case (a to d). Evidence submitted to the World program Bank b) Uncarded Beneficiaries Updated Operational Manual to ensure c) Beneficiaries with no National IDs. that there are in-built systems to d) Caregivers with same OVCs. identify cross-program beneficiaries. Completion Indicators: • Two consecutive monthly reconciliation of the holding account as at the date of the review • Reconciliation of the past payrolls disbursed as at the time of the evaluation 5 A: Reconciliation of the Payroll # Tasks Assigned Time Progress Indicators Status update • Financial closure of at least 75% of the payroll disbursed as at the time of the review • Approved operational manual with the updates under A4. B: Development of Financial Policies and Procedures Manual for the Program and Development of a Reconciliation Module # Tasks Assigned Time Progress Indicators B.1 Development of Financial Policies and TA November 30, 2017 Draft available to SAU by end Previously Achieved Procedures manual for the program October 2017. Approval of the manual through Evidence submitted to the World a notification by SAU by end Bank November 2017. B.2 Development of specifications and the TA June 30, 2018 Achieved now – Evidence to be software for the reconciliation module submitted A reconciliation module has been incorporated into the design of the new CCTMIS that has been undertaken by Development Pathways. The designed module takes into account any opening balances with PSPs, transfers to PSPs, successful Midterm presentations payments/ credits to beneficiaries, PSP commissions, claw back amounts and ending bank account balance. SAU MIS and Development Pathways took the WB team through the module at it appears adequate. Evidence to be submitted to World Bank by November 30, 2018. B.3 Dry Run of the software TA September 30, 2018 Achieved now - Evidence to be User Acceptance Certificates submitted 6 B: Development of Financial Policies and Procedures Manual for the Program and Development of a Reconciliation Module # Tasks Assigned Time Progress Indicators A dry run of the designed Module has been undertaken and is performing as per expectations. User Acceptance Certificates to be provided by SAU to demonstrate achievement of this. Evidence to be submitted to World Bank by November 30, 2018. B.4 Payroll generation and reconciliation using TA October 31, 2018 Achieved now – Evidence to be the new reconciliation module submitted Evidence of the system-based Software Acceptance reconciliation to be submitted by Certificate December 31, 2018. Evidence to be submitted to World Bank by November 30, 2018. Completion Indicators: • Approved Financial Policies and Procedures manual • Reconcile two (2) consecutive ‘cycles’ using the new software. Submit system generated reports, substantiating the verification, data upload to PSPs, reconciliation, and financial closure of each payroll processed using the new system. C: Human Resource Deployment in Accounting # Tasks Assigned Time Progress Indicators C.1 Finalization of HR plan for additional resources Martin HR September 30, Achieved now – pending evidence required together with the justification, job 2017 compilation and submission descriptions, and hiring plan. HR Plan has been developed and Submission of the HR Plan for has already been shared with the the World Bank's technical team World Bank. review. Evidence to be Submitted to the World Bank by March 31, 2019 7 C.2 Amended job descriptions of the existing staff Martin HR/ September 30, Achieved now – pending evidence segregating the duties between processing, Meeme 2017 compilation and submission verifying, approvals, financial approval for Job descriptions have been disbursement to PSPs, reconciliations and financial developed and included as part of closure of the payroll. The role of the internal audit the above HR plan. These have department should be in the post disbursement Amended Job descriptions for already been shared with the World stage and be clearly defined in the document. the World Bank's technical team Bank. review. Evidence Submitted by the World Bank. Evidence to be Submitted to the World Bank by March 31, 2019. C.3 Full-time deployment of the Project Accountant Martin HR/ September 30, Pending and Payment officer to SAU who are currently Charity 2017 Head of Accounts has indicated that allocating their time between SAU and the other the Ministry Accounts department departments of the Ministry. Revised date is currently understaffed and as March 31, Notification from: such cannot deploy the current 2019. a. Head of Accounts for Programme Accountant on a full- Project Accountant time basis. This effort needs to be b. Principal Secretary (PS) for escalated to PS for further Payment Officer guidance and direction. A letter for full-time deployment of the payments officer not yet done. SAU following up with HR unit of the Ministry to have this finalized by November 30, 2018 C.4 Deployment of additional HR resources is Martin HR September 30, Achieved now – pending evidence complete, if applicable 2017 compilation and submission Two (2) Assistant payment officers and an assistant accountant are Joining Report of additional HR already on Board and are currently resources, if applicable. working in SAU. Evidence to be Submitted to the World Bank by March 31, 2019. 8 Completion Indicators: • The Job descriptions of the key resources for the accounting and MIS resources have been approved by Head of SAU. • Notification for full-time deployment of the Project Accountant (Moses) by the Head of Accounts • Notification for full-time deployment of the Payment Officer (Sydney) by the PS\ • The hiring process of the new employees as per the HR plan initiated/request for no objection to engaging new consultants has been submitted to the World Bank D: Improvements in the Existing MIS # Tasks Assigned Time Progress Indicators D.1 Pre-payroll review enhancement to include Franklyn/ September 30, Achieved now – pending evidence National Single Registry data validation. Paul 2017 compilation and submission A draft pre – payroll verification protocol now including National Single Registry data validation is Protocols submitted to the World in place. Duly approved protocol Bank's technical team review. yet to be provided to the World Bank. Evidence to be Submitted to the World Bank by March 31, 2019. D.2 Development of secure data transfer protocol and Franklyn/ September 30, Achieved now – pending evidence the design of the encryption tool for exchanging Paul 2017 compilation and submission payroll data between the program and the PSP. For old CCTPs, secure data transmission already in place for KCB. Payroll files are shared with KCB through an upload on an online portal which is secure. For Protocols submitted to the World EBL, an encryption tool is already Bank's technical team review. in place and being used to transfer files to PSP. A write up on the encryption tool and the process to be submitted to the WB by November 30, 2018. Under the new payment solution, secure transmission of files (70 9 D: Improvements in the Existing MIS # Tasks Assigned Time Progress Indicators plus) to the four PSP is already in place through an online portal that is secure. Evidence to be Submitted to the World Bank by March 31, 2019. D.3 Development, testing, and implementation of the Franklyn/ September 30, Achieved now – pending evidence Encryption tool. Paul 2017 compilation and submission User Acceptance Report See update on D.2 above submitted to the World Bank's technical team review. Evidence to be Submitted to the World Bank by March 31, 2019. D.4 Approvals and formal adoption of the protocols Franklyn/ March- 30, Achieved now – pending evidence for data exchange, live data feeds from the core Paul 2018 compilation and submission banking system of the PSP’s, adjusting the a) Approvals and formal excess amount paid to the beneficiaries by PSP’s, adoption of the protocols for pre-payroll validation with Single National data exchange – See update on Registry through updating the operational D2 above manual. b) Protocols for live data feeds from the core banking system of the PSP's has already been included in the contracts Updated operational manual signed with PSPs in March submitted to the World Bank's 2018. This MIS is already technical team review. working with the 70+ cohort of beneficiaries and after that be applied to all the beneficiaries under CCTPS. Payments for the remaining CCTPs under the new solution are expected to start in January 2019. c) Approvals and formal adoption of the protocols for adjusting the excess amount 10 D: Improvements in the Existing MIS # Tasks Assigned Time Progress Indicators paid to the beneficiaries by PSP’s – This issue has mainly been with KCB and not with EBL. The Ministry, KCB, and the World Bank held a meeting on 6 February 2018 to discuss the issue of over/underpayments to beneficiaries as a result of delayed uploads of transactions data by some paying agents. The meeting resolved that going forward, KCB will provide a listing of all delayed uploads to the Ministry by at least five (5) days before the next payroll run. The Ministry will then formally approve this adjustment, via letter to KCB, that the delayed upload transactions to be incorporated in the next payroll by KCB as a separate line item and without amending the payroll amount sent by the Ministry, in their core banking system. In addition to this, the Ministry has in March 2018 signed contracts with PSPs for implementation of a new payment solution that will help address the issue of 11 D: Improvements in the Existing MIS # Tasks Assigned Time Progress Indicators over/underpayments to beneficiaries under the new solutions, and approved entitlements will be credited directly to beneficiary bank accounts with no refunds of uncollected funds by PSPs. The issue of delayed uploads by paying agents will, therefore, be eliminated. d) Approvals and formal adoption of the protocols for pre-payroll validation with Single National Registry through updating the operational manual - See update in D.1 above, Evidence to be Submitted to the World Bank by March 31, 2019. D.5 Approval and formal adoption of a Disaster Franklyn/ March 30, 2018 Pending Recovery Management Plan and updating the Paul SAU to work on Single Registry operational manual. New Updated operational manual DRM plan already in place and submission submitted to the World Bank's customize it to its operations. deadline technical team review. Document to be finalized and March 31 2019 shared with World Bank by 31 January 2019. D.6 Develop and adopt strategies to ensure the Franklyn/ March 30, 2018 Pending effectiveness, sustainability, and continuity of the Paul MIS Strategy already developed A succession plan for the MIS MIS/IT operations in the event of: New and approved, and this will be submitted to the World Bank's a. a key resource planned or unplanned submission shared with the World Bank by 31 technical team review. absence or departure deadline January 2019. b. the contract with the existing MIS firm 31 March 2019 comes to an end or terminated. 12 D: Improvements in the Existing MIS # Tasks Assigned Time Progress Indicators This would also include developing an IT/MIS ICT register being done – to be Governance and framework which would finalized by the end of January include: 2019. (i) IT/MIS strategy; (ii) ICT Assets Register; (iii) ICT Policies and procedures; (iv) documented WFP will liaise with Development change management procedures; (v) IT General Pathways to have documentation on item number (iv) – MIS change Controls; (vi) System access rights; (viii) formal management user authorization mechanism and (ix) MIS Database controls SAU MIS and Ministry ICT unit to work on item numbers (iii) - ICT Policies and procedures and (v) - IT General Controls There is an already existing document addressing item numbers (vi) - System access rights; (viii) formal user authorization mechanism and (ix) MIS Database controls – MIS to share this with World Bank for Review by November 30, 2018. Succession plan: Need to rethink this in line with how Government succession matters normally work. This to include formalizing the ways the Ministry engages with Consultants and Technical Assistance. D.7 A rapid assessment of the HR of the MIS Franklyn/ December 31, Achieved now – pending evidence department by carrying out the following Paul 2017 HR review report submitted to the compilation and submission activities to identify capacity gaps, the need for World Bank's technical team Training Needs Assessment for new hires and training needs: review. SAU, including IMS, already done in the last phase – for existing staff 13 D: Improvements in the Existing MIS # Tasks Assigned Time Progress Indicators a. Performance Appraisal of the existing and a framework proposed for staff. future engagements. To be b. Training Needs Assessment (TNA) provided to World Bank formally c. Capacity Building Plan for the MIS staff. by November 30, 2018. Training/ Capacity Building plan for SAU this year – To be provided to World Bank formally by November 30, 2018 Performance appraisal: There is an existing performance appraisal mechanisms within the Ministry. Evidence to be Submitted to the World Bank by March 31, 2019. Completion Indicators: • Successfully running two (2) consecutive cycles using the encryption protocol. • Approved operational manual with policies and procedures regarding pre-payroll data validation test with the Single National Registry, data transfers using encryption tool and DRM. • Approved Succession Plan for MIS from PS. • Implementation plan on the recommendation of the Rapid Assessment report for MIS HR review. E: Contracts with PSPs # Tasks Assigned Time Progress Indicators E.1 The new contracts should incorporate the Payment June 30, 2018 Achieved now – pending evidence following amendments: Officer with compilation and submission a. the commission will be based on actual support The Ministry has in March 2018 payments to beneficiaries account from FSD Submission of the proposed signed new contracts with PSPs. b. adopting a performance-based formula to performance-based formula for the Under the new contracts, calculate commission to the PSPs World Bank's technical team commissions to PSPs will be based review. on monthly unique withdrawal reports showing actual amounts withdrawn by beneficiaries. This will initially apply to the 70+ cohort 14 E: Contracts with PSPs # Tasks Assigned Time Progress Indicators of beneficiaries and thereafter be applied to all the beneficiaries (expected start date is March 2018 for 70+ and January 2019 for all other existing beneficiaries under the CCTP. Evidence to be Submitted to the World Bank by March 31, 2019. Completion Indicator: a. Provision for performance-based payment mechanism incorporated in the new contracts of the PSPs. F: Internal Audit / Quality Assurance # Tasks Assigned Time Progress Indicators F.1 A ‘Training Calendar' on Social Safety Nets for Moses/ September 30, Pending 2017-18 for the internal audit department listing Joseph 2017 A training calendar had been specific training (international and local) for the New prepared for the financial year staff. submission 2017/2018. Submission of the Training Calendar deadline for the World Bank's technical team March 31, 2019 A new one for the 2018/2019 review. financial year needs to be prepared and approved by the PS and submitted to the World Bank by January 31, 2019. F.2 The Audit Committee needs to be constituted at Moses/ September 30, Pending the earliest. Joseph 2017 The process was initiated in 2017 but not finalized. With the change New in Ministry Cabinet Secretary and List of finalized members for the submission also split of the former Ministry Audit Committee. deadline into two, the process will start March 31, 2019 afresh. The committee is expected to be in place by the end of January 2019. 15 F: Internal Audit / Quality Assurance # Tasks Assigned Time Progress Indicators F.3 Formal approval from the PS of the process for Moses/ September 30, Achieved now – pending evidence obligating the funds for the internal audit Joseph 2017. compilation and submission function and reporting, as follows: These have been finalized and a. The Annual Audit plan for SAU along signed by the PS. with the budget should be submitted by the Internal Audit Unit to the Audit Evidence to be submitted to World Committee in the fourth quarter for the Bank by November 30, 2018. Submission of the procedure for the next fiscal year operations. World Bank's technical team review. b. Once approved by the Audit Committee, Evidence to be Submitted to the the PS will allocate budget for the World Bank by March 31, 2019. internal function and will be made available the requisite funds to the internal audit department on demand. c. Protocol in place for reporting of internal audit. Completion Indicator: - Formal Notification from the PS on Adopting the Training Calendar with Budget - Formal Notification on Audit Committee from PS - Formal Notification from the PS on adopting the Financial and Procedures (Manual) entailing procedures relating to obligating of funds for the Internal Audit as well as the reporting protocol. G: Transfer of funds to KCB Status # Tasks Assigned Time Progress Indicator G.1 Payroll should only include those beneficiaries Achieved – Evidence Submitted who are carded. Sidney 30 April 2017 For OPTC and PWSD, payrolls to KCB only include those beneficiaries who are carded. OVC is however yet to implement Payrolls to PSPs to include only this. Some beneficiaries who are carded beneficiaries not carded are included in the payroll. This matter is now resolved, with the new payment solution 16 G: Transfer of funds to KCB Status deployed fully in all the CT programmes by January 2019, the only beneficiary with active bank accounts and have cards will be included in payrolls. For the 70+ cohort of beneficiaries, this is already working. Completion Indicator Payrolls to PSPs to include only those beneficiaries who have been carded H: Commission to KCB # Tasks Assigned Time Progress Indicators H.1 Ministry to amend procedures to avoid loss of Sidney 30 April 2017 Achieved – Evidence Submitted public funds. For OPTC and PWSD, payrolls to KCB only include those beneficiaries who are carded. OVC is however yet to implement this. Some beneficiaries who are not carded are included in the payroll. SAU MIS to ensure that cards data Payrolls to PSPs to include only provided by the PSPs on carded carded beneficiaries – hence beneficiaries will be taken into commission only based on account in the preparation of payroll carded beneficiaries for the upcoming payment cycles. This matter is now resolved, with the new payment solution deployed fully in all the CT programmes by January 2019, the only beneficiary with active bank accounts and have cards will be included in payrolls. For the 17 H: Commission to KCB # Tasks Assigned Time Progress Indicators 70+ cohort of beneficiaries, this is already working. Completion Indicator Charles to obtain evidence from t Payrolls to PSPs to include only those beneficiaries who have been carded I: Refund by Equity Bank Limited (EBL) # Tasks Assigned Time Status I.1 Reconcile outstanding amount not yet refunded Sidney/Henry July 30, 2017 Previously Achieved – Evidence by EBL Submitted Ministry has already shared evidence of the completion with the World Bank How Resolved Completion Indicator: The Ministry has reconciled the outstanding amount, based on XML file from EBL. 18