1. Expenditure & Budget Tracking Process COUNTRY: NIGERIA

2. Overview of Immunization Expenditure Tracking Process in NIGERIA Summary of existing country expenditure tracking process for the routine immunization program -Appropriation/Financial Resource Requirements (FRR) -Recording, analysis and reporting of expenditure -Budget Performance Review -Statutory Audit Dimensions of expenditure tracking -Vouching & Journalizing expenditure, -Preparation of Ledgers & Trial Balance -Reporting of expenditure through the statutory financial statements, -Audit of financial statement/report by the Auditor General and make recommendations to National/state Assembly Committee on Public Accounts (PAC), -PAC conduct thorough investigations into any case(s) of abuse or misappropriation with a view to recovering any funds lost. Bottlenecks and solutions

3. THE BUDGET CYCLE - OVERVIEW 1. MTSS/MTEF PREPARATION & APPROVAL 2. PREPARATION OF BUDGET PROPOSAL BY MDAs (using MTEF) 3. BUDGET PROPOSAL DEFENCE & APPROVAL (Ministry, Executive, Legislative) 4. BBUDGET IMPLEMENTATION (Appropriation Act, budget announcement) 5. BUDGET MONITORING & EVALUATION -warrants/release of funds -monitoring

4. Expenditure Tracking at LGA/State/Federal Levels Existing mechanisms Responsibility 1.Collection & reporting of immunization expenditures at each level: Federal/State: The Director of Finance and Accounts, LGA: Treasurer of the Local Government 1.Mechanisms  Reporting forms for capturing immunization expenditures include: Vouchers, Departmental Vote Allocation book, Cashbook, Journal books and Ledgers. Aggregate expenditure is published in the Annual statutory financial statements. Immunization expenditure easily identified in records Expenditures are reported separately since immunization exists as a separate line item in the annual appropriation Act. 3. Technology  Reporting and analysis of immunization expenditures are conducted with PCs using Microsoft excel and other appropriate software

5. 4. Sources  System distinguishes government from other immunization expenditures (domestic private, external) The annual statutory financial statements contain expenditure on government fund only. 5. Shared Costs  No shared cost approach exists for vehicles and human resources 6. Frequency Expenditures are reported and analyzed at each level annually.

6. WHO/UNICEF Joint Reporting Form (JRF) Process Some Issues to Consider 1.Importance. The annual JRF financial reports are the only direct measure of country immunization investments. 2.Responsibility  Financial section of the WHO/UNICEF Joint Reporting Form (JRF) is completed by the ICC Finance Committee  Review and submission to the WHO Country Office: Inter Agency Coordinating Committee (ICC) 3.Strategy  Identification and compilation of public routine immunization expenditures is accomplished by collating expenditure returns from the national, states and local government/ward levels.  Sources of expenditure data used include Paid vouchers, adjustment vouchers, Journal, ledger and Trial balance. 4.Under-reporting a.The current reporting system does not capture shared costs e.g. personnel cost. b.Can be resolved by apportioning costs using acceptable time ratios or number of immunization personnel at each level

7. Sabin SIF budget flow analysis Some Issues to Consider Purpose. To document and analyze annual immunization budget flows Utility. Reveals bottlenecks in the annual budget execution, documents budget credibility. Provides unaudited information for empirical budgeting, advocacy, management improvement. Users. MoH EPI teams. (Data are not externally reported.) Frequency. Ideally performed each year.

8. Sabin SIF budget flow analysis tool

9. Bottlenecks & Solutions Areas for Improvement. Timely implementation of budget cycle: delay in passing appropriation bill, cumbersome procurement procedures –delay in project excution Tracking of sub-national expenditures needs improvement to be more robust and transparent No cash backing and release of budgeted funds Potential Solutions Introducing public expenditure tracking survey, learning from ongoing pilot in Ekiti and Niger States. Zero budgeting method as opposed to current incremental budgeting method Bottom – up approach in planning, budgeting & tracking Institute transparent and reproducible accounting system at all levels Regular internal and external supervision Transiting from paper based system to electronic system Cash backing dependent on macroeconomic environment of the country.

10. Implementing Authority (State and non State Actors) Federal: Federal Ministry of Finance (Budget Office of the Federation), National Assembly, CSOs etc State: Budget & Planning commission, State House of Assembly, CSOs, etc LGA: Needs to introduce a tracking mechanism that will operate/function at this level Health facility: Needs to introduce a tracking mechanism that will operate/function at this level

11. INNOVATIONS Introduction of Single Treasury Accounts (TSA) Introduction of new planning horizon new budgeting technique (ZBB) ZBB is a method of budgeting in which all expenses must be justified for each new period, (every year) -Starts from a "zero base" -Analyzes every function within an organization for its needs and costs -Often builds budgets around what is needed for the upcoming year regardless of whether the budget is higher or lower than the previous one Clearly linked to Government’s policy priorities Allows top-level strategic goals to be linked to the budgeting process by Tying them to specific functional areas of the organization, where Costs can be first grouped ZBB is an improvement on the envelope system, The flexibility of the concept allows for easy adaptation to country peculiarities

12. INNOVATIONS Introduction of Single Treasury Accounts (TSA) Introduction of new planning horizon new budgeting technique (ZBB) ZBB is a method of budgeting in which all expenses must be justified for each new period, (every year) -Starts from a "zero base" -Analyzes every function within an organization for its needs and costs -Often builds budgets around what is needed for the upcoming year regardless of whether the budget is higher or lower than the previous one Clearly linked to Government’s policy priorities Allows top-level strategic goals to be linked to the budgeting process by Tying them to specific functional areas of the organization, where Costs can be first grouped ZBB is an improvement on the envelope system, The flexibility of the concept allows for easy adaptation to country peculiarities

13. Next Steps Engagement of implementing authority to introduce proposed solution Proper advocacy and sensitization of the relevant stakeholders with involvement of CSOs Peer review mechanism for states (using the PHC scorecard) Awareness creation through media and communication Regular policy and technical briefs Community sensitization to create demand for immunization services

14. THANK YOU