LHW Systems Review - Oxford Policy Management

Salaries and payments systemThe POL allowance, repairs and maintenance of vehicles, stationery, postage and courierservices, telephone charges (in some districts), and miscellaneous expenses are disbursedby the DPIU.Efficiency If the process is working well, funds should be released quarterly according toGoP procedures and flow through to the FPIU, the PPIU, and the DPIU. However, the FundFlow and Expenditure Tracking Study of January 2005 found that the transfer of funds to thedistrict level took 88 days in FY 2003/04 and 59 days in FY 2004/05. 56 Salaries for the sameyears took 76 days and 67 days, respectively. The reasons for the delays were analysed inthis report as being:• the sanction process at the controlling federal ministries;• delays at AGPR and its provincial sub-offices; and• defective methods of processing the salaries and stipends at commercial banks.The report presented detailed findings and recommendations on how to improve theprocess.7.3.2 Monitoring and management information3rd Evaluation results The survey revealed serious problems in the performance of thesalary payments system. Only one third of the LHWs had been paid in the month precedingthe survey; one third had not received their salary for four months or more. In addition,almost one fifth of LHWs received less money in their salary than their entitlement, the mainreason being the bank deducting a handling charge. Only half of the LHSs had received anyof the POL allowance in the previous month. The 3rd Evaluation did not cover payment oftraining allowances or project allowances. However, despite the delays in salary payment, itwas not found to be a factor that would contribute to differences in performance betweenLHWs. Presumably they were used to delays, and had faith that payment would ultimatelycome.Monitoring Essentially, the salaries and payments system is integral to financialmanagement but is not a part of the financial management system. Monitoring of the systemis typically undertaken by a designated FPO at the federal level and by Deputy Coordinatorsat the PPIU.The performance of the systems is subject to external evaluations by measuring delays insalary payments and allowances, and observing whether payments are received in full.Management information The salary pro-forma records the LHWs who are to be paid theirsalary. This is consolidated, and should be available from the PPIUs and the FPIU. TheStatements of Expenditure record the total allowances provided from each level of theProgramme.7.4 Planned systems development, 2003-08The Programme planned to review, with the MoH, the remuneration and allowancespackage for Programme staff, including LHWs and LHSs. Pay scales were to be reviewedand deputation allowances for senior Programme staff reinstated. 57 The plan was tocomputerise the payroll system for LHWs, LHSs, and drivers at the district level.56Fund Flow and Expenditure Tracking Study, 2005.57Strategic Plan, LHWP: 20.45