USAID CAPACITY BUILDING ACTIVITY FY 2018 ANNUAL REPORT

The activity's objectives include improving the Ministry of Education's (MoE) systems and procedures, increasing transparency and accountability, and strengthening the education sector's capacity to deliver quality education services. In its second year of implementation, CBA made significant progress towards accomplishing its objectives. The activity worked closely with the MoE through five Technical Working Groups (TWGs) and a Steering Committee chaired by the MoE Deputy Minister for Finance and Administration. The CBA achieved several key results during the year, including: Improving the Education Management Information System (EMIS) to increase data accuracy. The EMIS data accuracy increased from 52% to 62% (a 10% increase) during the year. Capacity building plans, data collection, verification, validation, and entry guidelines were developed and implemented at the MoE central, Provincial Education Directorate (PED), and District Education Office (DEO) levels. A system is being developed by a third-party to address the MoE's needs for analyzing and using the EMIS data collected. Improving teacher recruitment with greater gender parity. CBA trained 182 MoE General Directorate of Human Resources (GDHR) employees in merit-based recruitment at the central MoE and PED levels. A full-fledged training center was established at the MoE GDHR, enabling the MoE to conduct in-house capacity development programs. Four teacher recruitment training manuals were created, including recruitment and selection, job description development and job evaluation, training assessment matrix, and teacher induction manual. The MoE's teacher recruitment forms and templates were standardized, coded, and used by the MoE for all 34 provinces. Improving the payroll system to increase accountability and reduce corruption. CBA completed the payroll data cleaning and verification in its five targeted provinces, plus Parwan and Nangarhar provinces, resulting in a decrease in errors from 23% to 2%. The activity also identified 1,868 employees to be retired, deactivated 1,177 employees from the payroll system, and identified 1,363 employees who have been employed based on the off-scale system (Old 12 Steps System), which is now illegal. The Payroll Standard Operating Procedures (P-SOPs) were developed and implemented across the central MoE and in Bamyan province, and 267 employees were trained in P-SOPs, data cleaning, and data verification. Strengthening regular, effective audit systems. CBA developed an Internal Audit Procedures Manual & Toolkit, Internal Audit Charter, Code of Ethics, and Terms of Reference for the Audit Committee. These are expected to be effective as of January 2019, and 120 Internal Audit staff from the MoE central and five CBA-covered PEDs were trained on the use of Internal Audit Charter, Code of Ethics, as well as audit planning, risk assessment, audit sampling, and internal control system evaluation. Strengthening effective resource planning, allocation, and execution in the education sector. As a result of CBA interventions, the MoE has decentralized fiscal responsibilities to the PEDs on budget preparation and signing contracts worth up to AFN 499,999 (previously, the PEDs were only authorized to sign contracts up to AFN 50,000). Five CBA target provinces submitted their provincial development project plans and budgets to be included in the MoE national annual budget, and PED inputs were considered by the MoE and submitted to the Ministry of Finance (MoF). CBA supported the MoE in establishing an initial financial management system involving the PEDs and DEDs in annual budget preparation and using a unified financial mechanism that includes standardization of financial reporting at PED level and establishment of a reporting mechanism at DED level. The CBA's achievements during the year demonstrate the activity's impact and progress towards its expected results. The activity's continued support to the MoE will be crucial in sustaining the progress made and addressing the challenges that remain.