Transparent, Effective and Accountable Municipalities (USAID TEAM) Activity in Kosovo

The activity began in 2017 with a Needs Gap Analysis conducted in March of that year, which identified challenges in the public procurement system, including limited access to and use of the e-procurement system, particularly among private sector economic operators and internal auditors. The analysis also revealed that only 20% of audit recommendations are addressed, on average, and identified new capacity building needs in fraud detection and forensic auditing within the National Audit Office (NAO). The Corruption Vulnerability Assessment, conducted in conjunction with the Needs Gap Analysis, highlighted 19 key risks within the 32 steps of the procurement process, including the need to aid municipalities in developing comprehensive procurement activity plans and supporting their implementation. In response to these findings, USAID TEAM has structured interventions to address these gaps, including training economic operators and internal audit staff on the benefits and proper use of the e-procurement system. The project has also shifted resources to focus on high-priority areas of intervention, such as supporting municipalities to develop comprehensive action plans for audit recommendations and helping them to fully address those recommendations. The activity management plan describes USAID TEAM's approach to adaptive management, which involves systematically applying new knowledge and learning to respond quickly, effectively, and iteratively to programmatic dynamics. The adaptive system approach, bolstered by learning tools, enables USAID TEAM to understand and work within each municipal system as well as the multiple, interlinked decision-makers, influencers, and spoilers that exist from the local level all the way up to the national level. The project has also established a data-based approach to identify new or emerging entry points and design interventions accordingly through the continuous monitoring of changing dynamics. The activity management plan has undergone revisions since its original submission in April 2017. Several indicators have been refined or eliminated, including Indicator #6: Cost of municipal procurement corruption, which proved too difficult to measure with a satisfactory level of statistical significance. The project has also modified Indicator #10: from % Use of “Price Quotations-Minimal Value” Procedures to % Use of “Price Quotations-Value” procedures conducted by municipal procurement departments, as the original indicator prescribes two different procedures that are not aligned with the Public Procurement Law in Kosovo. The adaptive management approach will enable USAID TEAM to respond to changing dynamics and make adjustments to the activity as needed. The project will continue to use a data-based approach to identify new or emerging entry points and design interventions accordingly. The activity management plan provides a framework for the project to achieve its objectives and make a positive impact on the transparency, effectiveness, and accountability of municipal governments in Kosovo.