USAID-PFM Quarterly Performance Report (FY23 Q1)

Agency for International Development (USAID) awarded a contract to Deloitte Consulting LLP to manage the USAID Public Financial Management (USAID-PFM) activity in Nepal. The five-year activity aims to strengthen Public Financial Management (PFM) functions, performance, and accountability at the federal, provincial, and local levels of government, and also strengthen PFM institutions and systems at the national level. Key personnel were successfully deployed and employment agreements were put in place with local staff, including the Chief of Party, Objective 1 Lead, Objective 2 Lead, Lumbini Province Lead, Madhesh Province Lead, GESI Specialist, MEL Specialist, Senior Finance & Compliance Manager, Finance Specialist, and HR Administration & Logistics Specialist. Additionally, a full team of advisors from the US offices was identified and engaged, including the Engagement Director, Project Manager, Technical Advisor & Startup Specialist, Project Coordinator, and Startup Specialist. The activity finalized important operational components, including registering with the Local Ward, securing an office space, and registering with the Social Security Fund. Key procurements were initiated, including securing a vehicle, procuring laptops for staff, and procuring insurance and IT equipment. The activity created SharePoint and MS Teams sites for enhanced collaboration and established a temporary office space within the partner, WSP's office. Stakeholder consultations were conducted with a variety of government entities, including national organizations in Kathmandu and provincial organizations in Madhesh and Lumbini Provinces. Key organizations consulted included the Chief Minister, Principle Secretary, and MoF Secretaries for Madhesh and Lumbini Provinces, Financial Comptroller General Office (FCGO), Office of the Auditor General (OAG), Public Expenditure and Financial Accountability Secretary (PEFA), Ministry of Federal Affairs and General Administration (MoFAGA), Provincial and Local Governance Support Program (PLGSP), Local Development Training Academy (LDTA), Nepal Administrative Staff College (NASC), Public Financial Management Training Center (PFMTC), Public Procurement Monitoring Office (PPMO), Public Account Committee (PAC), and Institute of Chartered Accountants of Nepal (ICAN). The results of these consultations were incorporated into a report submitted on December 15th and will also be incorporated into the First Annual Work Plan and Monitoring, Evaluation and Learning (MEL) Plan, which will be delivered during the second quarter of 2023. The team discussed the co-design workshop deliverable in depth with USAID and developed a plan for conducting the workshop in Quarter 2. Looking towards Quarter 2, the activity will work to bring additional staff onboard, finalize remaining subcontracts, and secure a long-term office space. The co-design workshop will co-create the First Annual Work Plan that will then drive initial technical activities. The elections of November 2022 concluded without violence, and the new government has taken office. The country is currently in a transition period, with the new government working to establish its priorities and policies. The USAID-PFM activity will work closely with the new government to support the strengthening of PFM functions, performance, and accountability. The activity has made significant progress in assembling the team, establishing an operational presence in Nepal, and beginning technical discussions and planning. The team has successfully deployed key personnel, initiated key procurements, and conducted stakeholder consultations with government entities. The results of these consultations will be incorporated into the First Annual Work Plan and MEL Plan, which will be delivered during the second quarter of 2023. The activity will continue to work closely with the government and other stakeholders to support the strengthening of PFM functions, performance, and accountability. The co-design workshop will be conducted in Quarter 2 to co-create the First Annual Work Plan that will drive initial technical activities. The activity will also work to bring additional staff onboard, finalize remaining subcontracts, and secure a long-term office space. The USAID-PFM activity is committed to supporting the strengthening of PFM functions, performance, and accountability in Nepal. The activity will continue to work closely with the government and other stakeholders to achieve this goal.