YEAR 1 ANNUAL REPORT – PAKISTAN CDS TASK ORDER 2 – FMSS-KP

The project aimed to provide financial and management support services to the Provincial Reconstruction, Rehabilitation, and Settlement Authority (PaRRSA) in relation to KPRP, the Federally Administrative Tribal Areas (FATA) Secretariat in relation to FIP, and the Local Government, Elections, and Rural Development Department (LGE&RDD) Project Management Unit (PMU) in relation to MSP-KP and applicable allied departments. The project's objectives included providing short-term support for establishing and improving systems and procedures to manage USAID-funded activities, enhancing capacity primarily of personnel to procure, monitor, and manage infrastructure-related services and its inherent risks, and establishing standard operating procedures and developing tools for various elements of project management using Government of Pakistan (GoP) practices. The project also aimed to ensure operation of necessary and adequate financial and management capabilities and competitive procurement policies and systems, ensure an effective monitoring and evaluation system is in place, and USG assistance is used in compliance with the terms and conditions of the USAID Agreements. The FMSS-KP team provided targeted technical assistance to help programs in the areas of financial management, procurement, and internal auditing. The team assisted the Saidu Group of Teaching Hospitals (SGTH) in ongoing procurement of medical equipment, including all aspects of the procurement cycle. The team facilitated SGTHs in carrying out the technical and financial evaluation for the medical equipment, which was carried out efficiently and accurately. The team also facilitated one of the allied departments of KPRP, SGTHs, in recording transactions pertaining to import of medical equipment in the books of accounts. The team assisted the hospital staff in recording the transactions and then preparing the reconciliation between the books of accounts and the balance in the banks. The team identified errors pertaining to wrong postings and misclassification to the tune of PKR 167 million (USD 1.04 million) which were rectified. The FMSS-KP team also provided technical assistance to Saidu Group of Teaching Hospitals in developing the responses to the questions raised by the Office of Inspector General (OIG) on the costs incurred to procure medical equipment. The team assisted FIP and MSP in preparing the Fund Accountability Statements (FAS) for the year ending in June 2020 in the revised format. The team facilitated FIP and MSP by reviewing the financial records maintained from the start of the Programs until June 2020 and helped in preparing the FAS. The team conducted the baseline survey for FIP, KPRP, and MSP in the areas of governance, finance, procurement, monitoring and evaluation, and internal audit. As part of the baseline survey, the team conducted a human resource gap analysis for all three counterpart programs. The project developed standard operating procedures with FIP, KPRP, and MSP, including updating financial management, procurement, and internal audit manuals for FIP and MSP, that aligned with both GoP and USAID rules and regulations. The FMSS-KP team developed/updated job descriptions of the staff for FIP, KPRP, and MSP to ensure clarity in roles and responsibilities in positions related to accounts and finance, internal audit, and procurement. The team assisted in developing appropriate responses to the questions raised by the Office of Inspector General (OIG) on the costs incurred by the Burns and Trauma Center (BTC), one of the allied departments of KPRP. The project's achievements included facilitating the Saidu Group of Teaching Hospitals in carrying out the technical and financial evaluation for the medical equipment, recording transactions pertaining to import of medical equipment in the books of accounts, and preparing the reconciliation between the books of accounts and the balance in the banks. The team also assisted in developing the responses to the questions raised by the Office of Inspector General (OIG) on the costs incurred to procure medical equipment and prepared the Fund Accountability Statements (FAS) for the year ending in June 2020 in the revised format. The FMSS-KP team's efforts contributed to the improvement of financial management, procurement, and internal auditing systems in the Programs. The project's achievements demonstrated the effectiveness of the FMSS-KP team in providing targeted technical assistance to help programs in the areas of financial management, procurement, and internal auditing.