Manual of Procedures for Local Governments

The program of decentralisation is intended to reinforce participation, transparency, accountability and a sense of responsibility in the management of local administration. The Manual of Procedures determines the practice and procedures of financial management in decentralised governance in the pursuit of these objectives. It identifies different actors involved in financial management at Local Administration level and defines their roles and obligations. It also outlines strategic linkages with different partners.

The responsibilities and challenges of the Decentralisation Policy require discipline and local management systems which are based on cost-benefit principles in the mobilisation and utilisation of resources and provide value for money services. The Manual of Procedures briefly presents the process of budgeting, which guarantees the participation of different concerned parties from Community Development Committees at the Cell level up to central government level. This process involves public sector, private sector, civil society and community organisations at a local level with a view to achieving integrated development efforts. The "MTEF" (Medium Term Expenditure Framework) budgeting format allows the development of budgetary systems which clearly reflect past performance and future projections and embrace budget management by program and activity. Concerning the management of resources, the Manual defines the sources of revenue and their mode of management. It also indicates the procedures to be followed for expenditures, including the roles and functions of the Tender Board Committees. The procedures related to accounts and auditing are well also explained and based on a process of linking plans of action with periodic reports. For each procedure outlined in the Manual, the formats for the reports and accountability layouts are also given. Finally, the role of the Internal Auditor is also specified including informing civil servants about how financial management is conducted. Adherence to this Manual will promote key mechanisms of checks and balances which are essential for the management of fiscal decentralisation.
The full Manual of Procedures can be downloaded in pdf format by clicking on the link below.