Cook Islands: Public Finance Management and Public Sector Performance Review

Sovereign Project | 42389-022

Summary

This policy and advisory TA will be phase 1 and will (i) conduct a government-wide functional analysis to redefine government's size and scope; (ii) review how to include crown agencies under the performance elements of the PSC Act, 2009; (iii) address outer island administration in terms of improving service delivery in an accountable manner; (iv) improve performance management for more collaboration between ministries and agencies and a simplified planning and monitoring process in line with the annual budget and eventually the MTBF and linked to the NSDP; and (v) develop a public service policies, standards, and guidelines manual. Phase 2 will implement phase 1 as well as (i) review and improve the remuneration process, (ii) provide ongoing public administration training, and (iii) develop a performance orientation for SOEs and assess the rationalization prospects of SOEs and other government commercial activities.

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Project Name Public Finance Management and Public Sector Performance Review
Project Number 42389-022
Country Cook Islands
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 7646-COO: Public Finance Management and Public Sector Performance Improvement
Japan Fund for Poverty Reduction US$ 300,000.00
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Partnerships
Sector / Subsector Public sector management - Economic affairs management - Public administration
Gender Equity and Mainstreaming No gender elements
Description This policy and advisory TA will be phase 1 and will (i) conduct a government-wide functional analysis to redefine government's size and scope; (ii) review how to include crown agencies under the performance elements of the PSC Act, 2009; (iii) address outer island administration in terms of improving service delivery in an accountable manner; (iv) improve performance management for more collaboration between ministries and agencies and a simplified planning and monitoring process in line with the annual budget and eventually the MTBF and linked to the NSDP; and (v) develop a public service policies, standards, and guidelines manual. Phase 2 will implement phase 1 as well as (i) review and improve the remuneration process, (ii) provide ongoing public administration training, and (iii) develop a performance orientation for SOEs and assess the rationalization prospects of SOEs and other government commercial activities. The policy and advisory TA will support the adjustments the PSC is making to achieve its mandate and the regulatory framework, processes, and procedures in place to advance public sector management and performance.
Project Rationale and Linkage to Country/Regional Strategy

ADB's country partnership strategy (CPS) for the Cook Islands aligns with Te Kaveinga Nui National Sustainable Development Plan 2007-2010 (NSDP) by focusing on environmentally sustainable economic development and by contributing to four of its eight goals: (i) an innovative and well-managed private sector-led economy; (ii) sustainable use and management of natural resources and the environment; (iii) strengthened and affordable basic infrastructure, transport, and utilities to support national development; and (iv) a safe, secure, and resilient community. The intended outcomes of the CPS are improved economic and social infrastructure and public sector service delivery. The CPS targets are (i) improving public infrastructure to establish the fundamentals for environmentally sustainable private sector-led growth; (ii) building capacity and reforming agencies responsible for delivering infrastructure services; and (iii) improving the performance of public financial management.

A small scale technical assistance was approved in 2008 to carry out a diagnostic analysis of public sector performance and to put in place improved financial management systems and capacity. The SSTA (TA7149-COO) made the following recommendations: (i) conduct a government-wide functional analysis to redefine government's size and scope; (ii) include crown agencies under the performance elements of the PSC Act; (iii) address outer island administration in terms of improving service delivery in an accountable manner; (iv) improve performance management so there is more collaboration between ministries and agencies and simplified planning and monitoring process in line with the annual, and eventually, the multi year budget process and linked to the NSDP; (v) develop a performance orientation for SOEs and assess the rationalization prospects of state owned enterprises and other government services and activities; (vi) develop a public service policies, standards and guidelines manual and review and improve for remuneration process; and (vii) provide ongoing public administration training.

The proposed CDTA for public sector performance and financial management improvement will support the implementation of a public sector reform program and, as needed, support implementation of medium-term budget and fiscal frameworks, essential for underpinning transparent prioritization of infrastructure investments and important building blocks for improved fiscal planning and performance. The CDTA will provide support for strengthening financial management, an important element of the Government's response to the global economic crisis. In the longer term, it will enhance prospects of economic recovery and sustainability.

Impact A government structure that is cost-effective and aligned to national priorities
Project Outcome
Description of Outcome Options for priority public administration reforms available to the government.
Progress Toward Outcome 24 November, 2011: The TA team submitted the functional review report to Cabinet on 22 November 2011. The report has been formally accepted by Cabinet on behalf of the Government who has tasked the Steering Committee to review the proposed implementation plan for discussion by Cabinet on 15 December 2011. The review recommends a new function-based approach to the scope of Government and a proposed plan for implementation.
Implementation Progress
Description of Project Outputs 1. Functional analysis of government agencies completed and adopted, 2. Central government agencies (PSC, MFEM, and OPM) implement a coordinated planning, management, and monitoring system and; 3. Public administrative manual enabling PSC to enforce regulations submitted for approval
Status of Implementation Progress (Outputs, Activities, and Issues) 24 November, 2011: This report presented to the Ministers recognizes the growing capacity within OPSC to continue the functional review process and for OPSC to assist other Ministries with strategic planning and strategy based organizational development and determining of staffing skill requirements. The report also resulted in a depth of understanding on both the horizontal scope of Government as well as the vertical layers of government and how organizations work' and why they don't work.
Geographical Location Rarotonga, Cook Islands
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design The TA will support (i) consolidating, aligning, and simplifying the current different planning, management, and monitoring systems with the NSDP and MTBF; and (ii) strengthening the collaboration between the central agencies (PSC, MFEM, and OPM) so that performance-oriented planning and monitoring is done in an efficient manner using the human resources available and not overburdening ministries and agencies.
During Project Implementation The TA will advance the preparation of standard public service administration policies across government to be submitted for approval and adoption. It will assist the PSC to produce a single operations manual consisting of a set of public service policies, standards, and guidelines in a consolidated manner for all ministries and agencies. Once endorsed for approval, support for implementation, including training for line ministries by the PSC, will be carried out under the proposed phase 2 of the TA.
Business Opportunities
Consulting Services The policy and advisory technical assistance (TA) will (i) conduct a government-wide functional analysis to redefine government's size and scope; (ii) review how to include crown agencies under the performance elements of the Public Service Commission (PSC) Act, 2009; (iii) address outer island administration in terms of improving service delivery in an accountable manner; (iv) improve performance management so there is more collaboration between ministries and agencies and a simplified planning and monitoring process in line with the annual budget and eventually the medium term budget framework and linked to the National Sustainable Development Plan; and (v) develop a public service policies, standards, and guidelines manual. A proposed follow on TA will be the implementation phase and will (i) review and improve the remuneration process, (ii) provide ongoing public administration training, and (iii) develop a performance orientation for state-owned enterprises and assess the rationalization prospects of state-owned enterprises and other government commercial activities.
Procurement

The required consulting inputs for the different clusters and time frames are indicated below:

1. Public Sector Reform and Organizational Development Specialist and Team Leader (international, 8 person-months intermittent over a 12-month period)

(i) Assess the size, cost, and personnel allocations of the various Ministries/departments and Crown Agencies by first determining the necessary functions of respective departments and/or sectors.

(ii) Identify areas where duplication of effort can be eliminated and consolidation, streamlining and contracting out can occur to achieve cost efficiencies and improve Public Service effectiveness.

(iii) Review Outer Island Administration, functions, and roles. With OPSC, identify a more responsive management and accountability approach.

(iv) Realign Government Ministries and Agencies into a more efficient structure and identify organizational structures, functions, personnel, and other needs, at a high level only.

(v) Review the PS Act 2009 to determine approaches to include crown agencies under the PS Act, especially related to accountability sections. Advise on ways to adjust the PS Act, as deemed appropriate.

(vi) Present findings and recommendations to the National Sustainable Development Committee.

(vii) Manage team and liaise with the OPSC and other government stakeholders for the entire project.

(viii) Conduct information gathering and presentation workshops with Public Service Personnel and other relevant stakeholders.

Output/Reporting Requirements:

(i) a functional analysis of Government Agencies completed

(ii) Central Government Agencies (OPSC, OPM and MFEM) endorse a coordinated planning, management and monitoring system for implementation; and

(iii)A Public Administrative Manual enabling OPSC to enforce regulations submitted for approval. Prepare necessary project related reports to include an inception report with a TA work program, monthly status reports, a draft final report, and final report. In addition, a preliminary findings paper during the first stage of the functional analysis and a final National Sustainable Development Committee accepted public administration rightsizing plan.

2. Public Sector Organizational Assessment Adviser (national, 8 person-months over a period of 12 months)

(i) Work with the team leader to conduct government-wide functional analysis.

(ii) Help gather ministry/agency information, assess information, and advise on ministry and agency activities.

(iii) Contribute to preparing a costed redundancy program based on experience in the Cook Islands and country systems and processes.

(iv) Maintain liaisons with key stakeholders in government and civil society. Help conduct project workshops with government participants and other key stakeholders.

(v) Contribute to project reporting as needed.

3. Governance Analyst (National, 8person-months)

(i) Assists in the Government Functional Review

(ii) Review and recommends staffing structures according to functions

(iii) Conducts studies and makes recommendations related to administrative, organizational, operational and management policies

(iv) Makes recommendations based on NSDP, Budget Statement and any departmental reviews, confers with departmental representatives regarding operating methods, and staffing levels

(v) Assists in producing the Public Service Manual

(vi) Assists in dispute resolution and investigation

(vii) Prepares reports, memoranda and correspondence pertaining to various Governance functions, presents research findings and recommendations.

Responsible ADB Officer Maria Melei
Responsible ADB Department Pacific Department
Responsible ADB Division Pacific Subregional Office in Suva, Fiji
Executing Agencies
Ministry of Finance & Economic ManagementMs. Priscilla Maruariki, Acting Financial SecretaryPO box 120 Cook Islands
Timetable
Concept Clearance 20 Apr 2010
Fact Finding 15 Apr 2010 to 18 Apr 2010
MRM -
Approval 12 Nov 2010
Last Review Mission -
PDS Creation Date 07 May 2010
Last PDS Update 29 Nov 2011

TA 7646-COO

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
12 Nov 2010 29 Nov 2010 29 Nov 2010 30 Nov 2011 29 Feb 2012 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
0.00 300,000.00 75,000.00 0.00 0.00 0.00 375,000.00 12 Nov 2010 278,531.22

Safeguard Documents

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Evaluation Documents

See also: Independent Evaluation

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