Eight out of Nine Provincial Governments have this year qualified for access to PCDF after meeting all Seven Minimum Conditions (7 MCs) that allow them access to SBD50Million of Provincial Capacity Development Fund (PCDF) of Provincial Governance Strengthening Programme (PGSP) (a programme administered by the Ministry of Provincial Government and Institutional Strengthening (MPGIS)). The Eight Provinces qualified after meeting all the 7 MCs in the annual performance assessment conducted by three independent local consultants from December 2016 to May 2017 for allocation of funds in 2017/18. Only Central Islands Province could not manage to get through this year.

 

The project steering committee or Joint Oversight Committee (JOC) which is chaired by the Permanent Secretary of the MPGIS, Mr Stanley D. Pirione, released the final results of the assessment immediately after the board concluded its meeting in Tulagi in July this year.

 

The capital development fund allocated by SIG to Nine Provincial Governments as performance based grant in 2017/18 stands at SBD50Million. For a Province to access this fund, it will have to prove that it has complied with basic 7 MCs that are assessed by independent assessors administered by the MPGIS through its PGSP programme.

 

In this year’s annual performance assessment, Provincial Governments were assessed on Seven (7) MCs and Eight Performance Measures (PMs) with 100 indicators. For a Province to qualify for funding from the PCDF, it has to meet all Seven MCs (see tables 1 & 2 below). Every indicator is worth SBD250, 000 for the performance assessment. About 50% of the PCDF is allocated to qualifying Provinces based on meeting minimum criteria and 50% based on performance.

Members of the JOC 2017 pose for a shot during deliberations on Provinces’ performances on PCDF at Tulagi. L-R from back row: Mr. Jackson Gege, Provincial Secretary MPG, Mr. Timothy Ngele, Provincial Secretary GPG, Mr. Ambrose Malefoasi, US MEHRD, Mr. Norman Hiropuhi, US Fiscal MoFT, Mr. Selwyn Vasuni, Provincial Secretary IPG, Mr. Roy Mae, US Technical MDPAC, Mr. Nego Sisiolo, Permanent Secretary MPS, Mr. Stanley Pirione, Permanent Secretary MPGIS, Mrs. Ethel Sigimanu, Permanent Secretary MWYC&FA (now Permanent Secretary MJ&LA), Mrs. Karen Galokale, Deputy Secretary to Cabinet (now Permanent Secretary MPNS&CS), Dr. Melchior Mataki, Permanent Secretary MECCDM&M

Table 1: PCDF Annual Performance Assessment Results with Fund Allocation for 2017/18

Item no.	Province	Final PM Scores	PCDF Allocation 2017/18 SBD
1	Makira Ulawa	51	5, 192, 534
2	Malaita	56	12, 647, 326
3	Western	49	7, 580, 065
4	Guadalcanal	36	7, 547, 431
5	Isabel	72	5, 099, 431
6	Central	53	797, 870
7	Temotu	48	3, 733, 047
8	Choiseul	68	4, 943, 856
9	Rennell & Bellona	47	2, 456, 229
Total			50, 000, 000

Isabel benefitted from a bonus point of 10 having had a ‘’qualified audit opinion’’ in its audit report of 2014/15.

 

The objective of the performance based grants of PGSP is to:

 

• To provide funds to Provinces for small scale infrastructures that promote rural economic development;
• Build capacities of Provincial Officers through learning by doing to enable them to support service delivery at rural level;
• Develop capacities of Provincial Officers and elected leaders in Public Expenditure Management system and Good Governance;
• Promote Public Expenditure Management systems and Public Financial Management systems at the Provincial level through incentives.

 

Table 2: The 7 Minimum Conditions (MC) Assessed in April – June 2016 are:

 

MC Description	Comments
Core staffing in place Provincial Secretary or Deputy Provincial Secretary, Provincial Treasurer or Deputy Provincial Treasurer, Chief Planning Officer or Senior Planning Officer who is dedicated to PCDF should be in place.	This MC has been met by all Nine Provinces.
Natural Justice The termination of seconded officers is carried out by following the Principles of Natural Justice as laid out in the Labour Act, PSblic service Regulations and the relevant sections of the General Orders of the Solomon Island Government.	Only Central Islands Province could not meet this MC this year.
Management of Provincial Capacity Development Fund (PCDF) Accounts That PCDF Accounts are not used for any purposes other than PCDF purposes. It is prohibited to pay funds in and out of PCDF Bank Account that is not for the purpose of implementing PCDF projects.	This MC has been met by all Provinces.
Financial reporting The Provincial Government Financial Statements are submitted to the Office of Auditor General on or before 31st December.	This MC has been met by all Provinces.
Bank Reconciliation That the Bank Reconciliations of the Province are up to date at least one month before the assessment team arrives	This MC has been met by all Provinces.
Audit Reports That the most recent Province Audit Reports are tabled before the Provincial Assembly and a strategy is developed of how audit queries shall be dealt with by the Province.	This MC has been met by all Provinces.
Co-funding That the Province pays its own contribution into the PCDF Account during the course of the year. This has to be evidenced in the Bank Statement of the Province.	This MC has been met by all Provinces.

 

Table 3: The Performance Measures (PMs) that were assessed from December 2016 – May 2017

 

Items	Performance Measures (PM)	Indicators
1	Existence of quality of Development Plan and Annual Budget.	18
2	Achievement of Budgeted Estimated Targets and Project Implementation (Budget Performance).	9
3	Revenue Collections Performance and Contribution to Own Development (Sustainability).	8
4	HR Management Capacity and Performance.	6
5	Financial Management.	28
6	Procurement System is followed by all Provinces.	15
7	Transparency and Governance.	10
8	Operation of Assembly and Executive and links to Administration.	6
	Total	100

 

The next assessment to determine who should qualify for PCDF funding in 2018/19 shall be carried out from October 2017 – January 2018. All Provinces are being advised to start proper preparations for the next round of assessment. Support from the MPGIS shall be provided to ensure all Provinces have the capacity to comply and meet the required conditions to ensure proper accountability of public funds.