REVISED CMA III - Ministry of Health

in DPs’ governments and/or policies, changes in sector structures or systems and
emergence of new types of sector partners.
Sector Budget Support Funds
Sector Budget Support is the MOH’s preferred modality for external support to its SMTDP. The
SBS Framework Memorandum of February 2008 sets out the key principles underlying the
provision of SBS, which intends to align signatory DPs’ policies and procedures to GoG priorities.
It also intends to improve policy dialogue among all stakeholders in the health sector, minimise
transaction costs, increase the predictability of funding by signatory DPs, reduce tied aid,
promote accountability for service delivery, and improve harmonisation of support provided by
signatory DPs. In implementing the SBS, signatories are committed to focus on results, using the
Performance Assessment Framework (PAF) to measure progress towards achieving the sector
development goals and the annual targets.
SBS is not yet fully integrated into the health sector financial management system. In particular, it
is currently reported and tracked separately from GOG funds in planning and financial reporting,
and is subject to the same bureaucratic mode of access as GOG Item 3 funds, with each individual
drawdown having to be applied for and justified. Under this CMA, key sector partners agree in
respect of Sector Budget Support:
1. To ensure that MOH, MOFEP and SBS DPs collaborate to minimise delays in disbursement
of SBS funds from MOFEP to the sector, by clarifying justification procedures and setting
targets for timeliness in disbursement by both SBS DPs and MOFEP.
2. To agree mechanisms for monitoring performance and enforcing sanctions for non-­‐
compliance.
3. To prepare and submit to MOFEP a plan for integrating SBS funds into GOG funds in
expenditure management at the earliest possible date, while maintaining the reporting of
separate sources of funds for accountability purposes.
Health Fund/Donor Pooled Fund
In spite of the reduced level of its utilisation at present, it is agreed that there is value in retaining
the Health Fund as a mechanism for new partners who may find merit in using a disbursement
mechanism that enables them to disburse directly to the health sector, rather than through
MOFEP as is the case with SBS. The objectives stated above for SBS also apply to the Health Fund,
with the proviso that in the case of Health Fund DPs the role of MOFEP in disbursement and
financial management is minimised or eliminated altogether. The scope of eligible expenditures
from the Health Fund may need to be reviewed, to bring it into line with the scope of SBS eligible
expenditures.
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