Predstavništvo Checchi and Company Consulting Inc. Beograd
GAI supports the City of Kragujevac to advance local budgeting by improving transparency, public engagement in budget preparation, and enabling better budget oversight. Within that effort, GAI intends to provide support for the improvement of program budgeting by standardizing performance measurement.
Program budgeting at the level of local governments was introduced in 2015 and based on the Ministry of Finances (MoF) Instructions for program budget development from 2014. This type of public budget includes defining programs/projects that will be financed from the local budget, with a clear set of elements that should enable transparent and comprehensive oversight of budget spending. Besides goals and activities, each program/project should contain measurable indicators to be used both for budget monitoring and evaluation, i.e., for obtaining information on whether and to what extent each program/project fulfills goals defined at the beginning of the process. In 2017, MoF published Instructions for program budget monitoring, evaluation, and reporting in order to help public entities to track program budget performance. In 2018, the MoF developed a form for reporting on program budget performance for local governments. Since this is a relatively new mechanism, local governments lack sufficient capacities and knowledge to implement it properly. In addition, this form is related to reporting from local governments to MoF and not to the public. Therefore, there is a need to improve this process not only because of the obligation of local governments toward central level institutions but also for the purpose of enabling the public to be informed about the performance of the local budget and to take an active role in its oversight. Besides the improvement of budget performance, technical assistance in this area should also improve program budgeting in general, since performance measurement cannot be done properly if previous steps (defining programs/projects, goals, activities, and indicators) are not being developed in a way to enable the budget performance evaluation.
Tasks and Methodology
The Subcontractor is expected to provide the following services:
• Assess the program budgeting process in the City of Kragujevac.
Assessment should include at least two of the latest program budgeting cycles and should consider whether and to what extent the budgeting process is complied with MoF requirements given in Instructions for program budget development and with Instructions for program budget monitoring, evaluation, and reporting.
• Provide recommendations to improve performance measurement in the City of Kragujevac.
• Prepare and deliver training for the representatives of the City of Kragujevac that should include, at the minimum:
1. General experience in using performance measurement in budget processes in the public sector, in different levels of governance.
2. Use of performance measurement in LSG program budget cycles (preconditions, obstacles, steps in implementation, impact on the efficiency of the budget process, etc.). The subcontractor should explore and present examples of budget performance measurement at the level of local governments.
3. Recommendations for improvement of the use of the performance measurement in program budgeting in the City of Kragujevac (in the planning phase, in the implementation phase, in the control and evaluation phase).