Baseline Survey Report for Municipal Services Program Khyber Pakhtunkhwa: Financial and Management Support Services to KPRP, FIP and MSP-KP (FMSS-KP)

The program is funded by the United States Agency for International Development (USAID) under the government-to-government mechanism. The goal of MSP-KP is to enhance the capacity of LGE&RDD PMU to manage USAID-funded activities, procure, monitor, and manage infrastructure-related services, and establish standard operating procedures. The program's objectives include providing short-term support for establishing and improving systems and procedures, enhancing capacity of personnel to procure, monitor, and manage infrastructure-related services, establishing standard operating procedures, ensuring operation of necessary financial and management capabilities, and ensuring an effective monitoring and evaluation system is in place. The program also aims to develop/update the Quality Assurance and Quality Control (QA/QC) procedure manual, ensure mitigating actions against identified risks, and ensure USAID is billed for only allowable, allocable, and reasonable costs. The baseline survey report was conducted by KPMG Taseer Hadi & Co. as a subcontractor to Chemonics International. The survey serves as a benchmark to assess the current state of MSP-KP and identify areas for improvement. The report provides an overview of the program's structure, governance, finance, procurement management, monitoring and evaluation, and internal audit functions. The report highlights several key findings, including inconsistencies in the Project Implementation Letter (PIL) and contract milestones, delays in payment to contractors and suppliers, and discrepancies in the composition of tender evaluation committees. The report also identifies areas for improvement, including the need to establish a functional heat map, implement potential mitigation measures, and conduct a detailed assessment of the program's functions. The program's geographic focus is on Khyber Pakhtunkhwa Province, Pakistan, and the software used for the report is Microsoft Word for Office 365. The total contract value for the program is USD 1,635,817, and the project's implementation period is from August 1, 2020, to July 31, 2021, with options to extend. The report provides a comprehensive overview of the MSP-KP program, highlighting its objectives, structure, and key findings. The report serves as a benchmark for assessing the program's current state and identifying areas for improvement, which can inform future program development and implementation. The program's governance structure includes the Project Steering Committee (PSC), Project Implementation Committee (PIC), and Project Management Unit (PMU). The program's finance function is responsible for managing the program's budget, ensuring compliance with USAID regulations, and providing financial reports to stakeholders. The program's procurement management function is responsible for procuring goods and services, ensuring compliance with USAID regulations, and managing contracts with suppliers. The program's monitoring and evaluation function is responsible for tracking program progress, identifying areas for improvement, and providing recommendations for future program development. The program's internal audit function is responsible for ensuring the program's internal controls are in place, identifying areas for improvement, and providing recommendations for future program development. The program's risk management function is responsible for identifying, assessing, and mitigating risks that could impact program implementation. The report provides a detailed assessment of the program's functions, highlighting areas for improvement and recommendations for future program development. The report serves as a benchmark for assessing the program's current state and identifying areas for improvement, which can inform future program development and implementation.