IHP+ FM Harmonization and Alignment Update IHP+ Steering Committee 21 June 2016

General Principles Align with country systems whenever they meet the minimum acceptable level. Harmonize among development partners, when all or part of the national Public Financial Management (PFM) system is not sufficiently developed. Agree and support implementation of a joint action plan that strengthens the national systems so as to bring about the necessary changes to make the alignment feasible. Not wait until all problems have been solved, but use a step-wise approach by using elements of country systems as soon as possible as part of the process of improving systems and developing capacity. 01/01/2019

Financial Management Technical Working Group Group formed in June 2014 with the approval of the Steering Committee to advance in-country work on FM harmonization and alignment Membership is open to all IHP+ Partners Current membership: World Bank- Chair, WHO, UNFPA, Global Fund, GAVI, EU, AfDB, KfW, USAID, Ethiopia, Sierra Leone, Senegal, and Nepal. Meet via mostly via audio once every two months

Responsibilities Identify good practices and lessons learned from FM harmonization and alignment efforts in the health sector in partner countries Identify bottlenecks to FM harmonization and alignment among DPs and also at the country level Share good practices and identify principles and options for harmonization and alignment, including Joint Fiduciary Arrangements Review and if needed revise the IHP+ Guidance on Joint FM Assessment Discuss, on an on-going basis, emerging issues in FM harmonization and alignment Assist the IHP+ Core Team in facilitating, on request, support to countries including Joint FM Assessments and identification of suitable Joint Fiduciary Arrangements Other arising responsibilities as decided by the IHP+ Steering Committee

Examples of work done so far Country Description of work Participating DPs Affiliated DPs Status Burundi Conduct joint FM assessment and develop a joint capacity building action plan AfDB, EU, GF, WB Belgium Corporation, GAVI & USAID, Swiss Embassy English and French versions of the report have been completed. A workshop to disseminate the report, agree on an FM improvement action plan, and to draft Joint Fiduciary Arrangements (JFA) in March has been postponed due to the political situation in the country. Senegal Align FM arrangements for DP-financed projects with country systems USAID, WB, GF GAVI For its HSS grant support to Senegal, GF now uses the country system, joining the WB and USAID in the use of country systems DR Congo (1) Develop joint FM procedures for government and DP-financed projects; (2) Leverage WB-led PFM reforms to set a Directorate of Financial Management in MoH GF, WB, BTC, AfDB UNFPA, EU Joint FM Manual has been prepared. The MoH recruited two consultants to help finalize the manual. Donor consultations are on-going. A dissemination workshop is planned for July 2016. Sierra Leone Set up an Integrated Health Projects Administration Unit (IHPAU) within MoHS GAVI, GF, WB WHO Review undertaken in May 2016. Sudan GF, GAVI, WB, UNICEF, UNFPA, UNDP, WHO, DfID JICA, EU Assessment misison planing in progress Liberia UNICEEF, UNFPA, EU, USAID, GAVI, GF, Irish AID & WB TBD JFMA report under preparation Ethiopia Draft a new JFA with DPs support GAVI, AusAID, Royal Dutch Embassy, GF, WB, and USAID   JFA now signed by all major DPs. DPs using joint financial management arrangements There is a pipeline of countries interested in joint FM approaches: Zambia, Myanmar, Malawi, Belize, Haiti

On-going Studies Understanding the costs and benefits of unharmonized and unaligned implementation arrangements in the health sector- funded by IHP+ and World Bank Developing a conceptual framework for PFM in health- Led and funded by the World Bank, in collaboration with WHO. Matrix with JFA 01/01/2019

Challenges Determining entry point for collaboration is difficult due to different DPs support cycles Low bilateral participation Slow decision making process by DPs Weak country leadership at times, makes joint effort supply driven

Opportunities/Areas of Focus Going Forward Intensify in-country work on implementing JFMA recommendations on harmonized arrangements or use of country systems. Use evidence-based research/study to support case for harmonization and alignment Solicit more participation in joint arrangements by bilateral partners and other UN Agencies Seek opportunities for collaboration in other regions other than Africa region