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The author’s views expressed in this publication do not necessarily reflect the opinions of the
United States Agency for International Development or the United States Government.
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FISCAL AND PROCUREMENT REFORM
PROJECT
YEAR 1 WORK PLAN
CONTRACT No. AID-OAA-12-00037/AID-TO-17-00002
April 2017
This document was produced for review by the United States Agency for International Development. It was
prepared by DAI.
CONTRACT NO. AID-OAA-12-00037/AID-TO-17-00002
FISCAL AND PROCUREMENT REFORM PROJECT YEAR 1 WORKPLAN 2
FISCAL AND
PROCUREMENT REFORM
PROJECT
YEAR 1 WORK PLAN
Project Title: Fiscal and Procurement Reform Project (FPRP)
Sponsoring USAID office: USAID/Guatemala
Contract Number: AID-OAA-12-00037/AID-TO-17-00002
COR: Yassin Osman
Contractor: DAI Global, LLC
Submission date: April 7, 2017
Re-submission date: May 31, 2017
Approval date: June 2, 2017
Amendment date: August 28, 2017
CONTRACT NO. AID-OAA-12-00037/AID-TO-17-00002
FISCAL AND PROCUREMENT REFORM PROJECT YEAR 1 WORKPLAN 3
TABLE OF CONTENTS
ACRONYMS .............................................................................................................. 4
I. INTRODUCTION AND BACKGROUND ...................................................... 6
PROJECT GOALS AND OBJECTIVES .................................................................................... 6
MANAGEMENT AND ADMINISTRATION ............................................................................. 7
GOVERNMENT OF GUATEMALA PARTNERS ........................................................................ 9
CRITICAL ASSUMPTIONS AND RISKS ................................................................................ 10
II. PROJECT APPROACH ................................................................................ 12
THEORY OF CHANGE ................................................................................................... 12
OVERALL APPROACH .................................................................................................... 12
DONOR AND PROJECT COORDINATION ............................................................................ 13
III. PROJECT ACTIVITIES ................................................................................ 14
COMPONENT 1: DOMESTIC RESOURCE MOBILIZATION ...................................................... 14
Activity 1.1 Business process reengineering of SAT’s prioritized core tax administration areas .................................................................................................................................................. 15 Activity 1.2 Improve the integrity of the Taxpayer Registry (RTU) and Taxpayer Current Account (TCA), and enhance the effectiveness of select Tax Audit and Control processes ..... 17 Activity 1.3 Develop and implement a citizen perception survey, taxpayer satisfaction survey, and gender and social inclusion tax impact analysis ............................................................... 18 Activity 1.4 Implement the exchange of information agreement SAT-MINFIN ....................... 20 Activity 1.5 Improve tax modeling capacity and policy analysis at MINFIN and SAT .............. 20 Component 1 Key Milestones and Deliverables for Year One .................................................. 22
COMPONENT 2: EXPENDITURE MANAGEMENT AND PROCUREMENT REFORM ........................ 23
Activity 2.1. Transform Guatecompras into a transactional management system ................. 23 Activity 2.2 Create the General Registry for Government Procurement .................................. 25 Activity 2.3 Develop the public works’ transparency indicators conceptual model ................. 28 Activity 2.4 Improve the use of framework contracts for government emergency procurements ........................................................................................................................... 28 Activity 2.5 Conduct human and institutional strengthening of the General Directorate for Public Procurement (DGAE) ...................................................................................................... 29 Component 2 Key Milestones and Deliverables for Year One .................................................. 31
IV. PROJECT SUPPORT ................................................................................... 32
SHORT-TERM TECHNICAL ASSISTANCE (STTA) ................................................................ 32
Technical STTA Pool .................................................................................................................. 32 Operational STTA Pool ............................................................................................................. 32
INTERNATIONAL TRAVEL PLANS ...................................................................................... 33
TRAINING PLAN .......................................................................................................... 33
ENVIRONMENTAL COMPLIANCE AND MONITORING ........................................................... 34
MONITORING, EVALUATION, LEARNING ......................................................................... 35
REPORTING ............................................................................................................... 35
ESTIMATED YEAR ONE LOE BY ACTIVITY ......................................................................... 36
ANNEX A. FPRP IMPLEMENTATION MATRIX ................................................................... 37
ANNEX B. SELECT DONOR ACTIVITIES AND AREAS FOR COORDINATION AND COLLABORATION . 45
ANNEX C. TECHNICAL STTA POOL ................................................................................. 48
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FISCAL AND PROCUREMENT REFORM PROJECT YEAR 1 WORKPLAN 4
ACRONYMS
BPMN 2.0 Business Process Model and Notation (BPMN) Version 2.0
CCN Cooperating Country Nationals
COP Chief of Party
COR Contracting Officer’s Representative
CoST Iniciativa de Transparencia en el Sector de la Construcción
Transparency Initiative in the Construction Sector
CSMS Case Selection Management System
CSO Civil Society Organization
DAPF Dirección de Análisis y Política Fiscal
Fiscal Policy and Analysis Directorate
DGAE Dirección General de Adquisiciones del Estado
General Directorate of Public Procurement
DNCAE Dirección Nacional de Contrataciones y Adquisiciones del Estado
National Directorate of Public Procurement
DTI Dirección de Tecnologías de Información del Ministerio de Finanzas
Information Technology Directorate of the Ministry of Finance
DTP Dirección Técnica del Presupuesto del MINFIN
Technical Budgetary Office of the Ministry of Finance
FPRP Fiscal and Procurement Reform Project
FUNDESA Fundación para el Desarrollo de Guatemala
GIZ German Technical Cooperation Agency
GOG Government of Guatemala
Guatecompras Guatemala’s electronic public procurement platform
ICP Información Clave del Proyecto
Key Project Information
IDB Inter-American Development Bank
IMF International Monetary Fund
IT Information Technology
LAC Latin America and Caribbean
LOE Level of Effort
LTTA Long-term technical Advisor
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FISCAL AND PROCUREMENT REFORM PROJECT YEAR 1 WORKPLAN 5
M&E Monitoring and Evaluation
MAGA Ministerio de Agricultura, Ganadería y Alimentación
Ministry of Agriculture, Livestock and Food
MCIV Ministerio de Comunicaciones, Infraestructura y Vivienda
Ministry of Communications, Infrastructure and Housing
MEL Monitoring, Evaluation, and Learning
MINFIN Ministry of Finance
MIPYMES Micro, pequeña y mediana empresa
Micro, small and medium-sized enterprises
MSPAS Ministerio de Salud Pública y Asistencia Social
Ministry of Health and Social Assistance
MTFF Medium-Term Fiscal Framework
OSCE Organismo Supervisor de las Contrataciones del Estado del Perú
Supervisory Agency for National Procurement of Perú
OTA U.S. Treasury Office of Technical Assistance
PAC Plan Annual de Compras
Annual Procurement Plan
RTU Registro Tributario Unificado
Unified Taxpayer Registry
SAT Superintendencia de Administración Tributaria
Tax and Customs Administration
SEGEPLAN Secretaría de Planificación y Programación de la Presidencia
Presidential Secretariat of Planning and Programming
SIAF Sistema Integrado de Administración Financiera
Integrated Financial Management Information System
SICOIN Sistema de Contabilidad Integrada
Integrated Accounting System
STTA Short-Term Technical Advisor
TAMIS Technical and Administrative Management Information System
TCA Taxpayer Current Account
TCN Third Country Nationals
TIN Taxpayer Identification Number
TOT Training of Trainers
USAID U.S. Agency for International Development
VAT Value Added Tax
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FISCAL AND PROCUREMENT REFORM PROJECT YEAR 1 WORKPLAN 6
I. INTRODUCTION AND
BACKGROUND
This report presents the first annual work plan for the USAID/Guatemala-funded Fiscal and
Procurement Reform Project (FPRP). It covers the period from January 20, 2017, to January 19,
2018. The Activity, funded through the Public Financial Management IDIQ, is a two-year contract, with an optional third year.
The first year work plan is of critical importance to build a strong foundation of the project’s
activities, establish expected results, and outline the critical activities, dependencies, and assumptions
that can impact implementation and outcomes. This is particularly relevant given the role that any
changes in the Ministry of Finance (MINFIN) and the Tax and Customs Agency (Superintendencia de
Administración Tributaria–SAT) must be initiated and led from within the government agencies
themselves. As such, this Year 1 Work Plan reflects inputs and feedback from numerous meetings
with different stakeholders and iterative discussions and brainstorming with USAID, MINFIN, SAT,
the donor community, and others.
This report is divided in four sections. The first section, “Introduction and Background” provides
overall background on the project objectives, expected results, management and administrative
structure, partners, and critical assumptions and risks that may affect achievement of results. Section
two, “Project Approach”, outlines the overall theory of change, approach, and methodology. Section
three, “Project Activities”, provides an overview of the proposed activities, by component, including
key milestones and deliverables. Section four, “Project Support”, covers training plans, STTA,
expected travel, donor and project coordination, environmental compliance and monitoring, and monitoring, evaluation, and learning.
At the end of the report Annex A, Implementation Matrix, provides and overview of the key
activities, labor, outputs/deliverables, and activity budget. Annex B, Select Donor Activities and
Areas for Coordination and Collaboration, provides descriptions of related donor and/or other
projects supporting thematic areas that FPRP supports, including examples on how FPRP may
coordinate and collaboration to achieve or accelerate results. Lastly, Annex C, Technical STTA Pool,
provides a list of technical expertise expected to support the FPRP through short-term technical
assistance.
PROJECT GOALS AND OBJECTIVES
The goal of FPRP is to improve the Government of Guatemala’s (GoG) ability to invest in health,
education, nutrition, infrastructure and other public services through more efficient tax collection,
lower levels of corruption, and improved public expenditure management. Through a demand-driven
approach, the project will support on-going reforms in public financial management (PFM), tax
administration, operations and small and medium-sized business participation in public procurement.
The main counterparts for the activity are MINFIN and SAT. FPRP focuses in two areas: Domestic
Resource Mobilization (DRM), and Expenditure Management and Procurement Reform. Figure One outlines FPRP’s Results Framework and expected results for each of the project’s components.
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FISCAL AND PROCUREMENT REFORM PROJECT YEAR 1 WORKPLAN 7
Figure 1. FPRP’s Results Framework
MANAGEMENT AND ADMINISTRATION
Chief of Party (COP) Dr. Eunice Heredia-Ortiz will lead the overall project as well as Component 1,
Domestic Resource Mobilization (DRM). Dr. René Montijo leads Component 2, Expenditure
Management and Procurement Reform (EM/PR). IT expertise is provided by TBD, and Monitoring
and Evaluation will be covered by Mr. Luis Fernando Ramirez. The bulk of technical expertise will be
provided by short-term technical assistance (STTA).
Providing critical operations support are Maria Luisa Salvatierra, the Deputy Chief of Party (DCOP).
She is supported by the Acting Finance and Administration Manager, Marielos Leon. An project
accountant, a procurement and logistics specialist and an administrative & communications specialist
provide additional operational and cross-cutting support to the project.
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FISCAL AND PROCUREMENT REFORM PROJECT YEAR 1 WORKPLAN 8
Each component will be embedded in their respective agencies: the DRM team, along with the
operations and administration staff, will be located in the SAT offices; the EM/PR and IT staff will be
at MINFIN.
Figure 2: Organizational Chart
In addition to the field-based team, DAI provides both management and technical support
from the home office (HO). HO staff may take on STTA activities in the field when there is
a demonstrated need for support that goes beyond typical technical and management
backstopping. Table 1 provides an overview of the HO roles and personnel supporting FPRP.
Table 1: Home office support team
Person Role Linkages
Regional Managing
Director
Sani Daher
Oversees Global portfolio and
monitors FPRP performance and
quality.
Communicates with COP and USAID as needed.
Project Team
Director
Noemi Danao-Schroeder
Oversees overall technical, financial,
and contractual quality and compliance
for all aspects of FPRP. Supervises
COP and monitors FPRP’s
performance.
Maintains communication with COP. Serves as a
technical resource and advocate for FPRP. Holds
check-in calls with project leadership, quarterly
project reviews, and periodic meetings with
USAID staff on project performance.
Project Manager
Travis Snow
Serves as the primary point of contact
for field staff. Ensures that
resources/expertise are mobilized
effectively. Ensures compliance with
DAI/USAID policies, regulations, etc.
Interacts with field staff to troubleshoot issues,
exchange progress reports on tasks, and
coordinate input of home office support units.
Supports work-planning, budgeting, and related
tasks.
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FISCAL AND PROCUREMENT REFORM PROJECT YEAR 1 WORKPLAN 9
Person Role Linkages
Project Associate
Lauren Zinser
Ensures timely, accurate processing of
payments, contractual actions, and
logistical/recruitment requests.
Maintains link between field staff and home office
support departments such as contracts, finance,
accounting, payroll, and IT. Supports timely
fielding of consultants.
PFM Practice Manager
TBD
Serves as technical advisor to the
COP and project staff.
Channels best practices, lessons learned from
DAI PFM projects to field staff. Responds to
technical inquiries about approach, methodology,
tools. Reviews/ comments on technical products
as needed.
Contracts
Administrator
Tigran Yeghyan
Ensures compliance with DAI/USAID
policies and regulations, interprets
prime contract requirements,
contributes to risk mitigation,
communicates w/the USAID CO.
Interacts with field team to provide guidance on
procurement, grants and overall contractual
compliance.
GOVERNMENT OF GUATEMALA PARTNERS
FPRP partners with GoG’s key governments institutions to implement activities laid out in this
workplan. For Component 1, Domestic Resource Mobilization, FPRP supports the Superintendency
of Tax Administration (SAT) on tax administration modernization activities, working in close
coordination with the SAT’s Office of Projects which manages the SAT’s modernization projects’
portfolio as well as donor and multilateral-funded technical assistance. Implementation of FPRP’s
activities will require working with multi-disciplinary teams in SAT’s core tax administration areas.
Furthermore, FPRP’s Component 1 activities support advancing tax modeling and policy analysis
capacities, working with the MINFIN’s Fiscal Policy and Analysis Directorate (DAPF) and SAT’s
Directorate of Planning and Institutional Development.
For Component 2, Expenditure Management and Procurement Reform, FPRP primarily supports
MINFIN’s Dirección Nacional de Contrataciones y Adquisiciones del Estado (National Directorate of
Public Procurement, DNCAE) within the Vice-Ministry of Revenue and Fiscal Evaluation.
Implementing activities related to integrating Guatecompras with the public financial management
system will require close coordination with other PFM modernization activities led by other vice-ministries and their respective directorates at MINFIN, including:
Office of the Ministry
Directorate of Planning and Institutional Development
Vice-Ministry of Revenue and Fiscal Evaluation:
Directorate of Public Procurement
Directorate of Providers Public Registry (to be created)
Vice-Ministry of Financial Management:
Directorate of Budgeting
Directorate of Accounting
Directorate of Treasury
Vice-Ministry of Internal Management and Systems Development:
Directorate of Information Technology
Specific public procurement related activities will also require close coordination with other government ministries and agencies, such as:
Small and medium enterprise promotion area at the Ministry of Economy.
Public works construction provider’s registry area at the Ministry of Communication,
Infrastructure and Housing
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FISCAL AND PROCUREMENT REFORM PROJECT YEAR 1 WORKPLAN 10
Contract provider’s registry area at the General Comptroller Agency
Consulting provider’s registry area at the General Planning Secretariat, SEGEPLAN
The FPRP project will promote activities that help sensitize the different stakeholders within
MINFIN, SAT, and others involved in the reform process, improving the understanding of the goals
and objectives of the project, increasing visibility toward activities, with the purpose of increasing
commitment and buy-in toward the reform process across the various MINFIN and SAT directorates, and beyond.
CRITICAL ASSUMPTIONS AND RISKS
FPRP’s assessment of the overall risks to implementing activities in this workplan and achieving the
targets and expected results is high. Some of these risks are related to the political and governance
environment of the Guatemalan administration. Although the current administration is committed to
improving transparency and accountability and after persistent corruption scandals and ongoing
investigations and arrests, tackling the issues related to transparency and accountability as stated in
this workplan represent some complex and highly sensitive reforms in tax, customs, and public
procurement. Furthermore, this workplan has been developed based on expressed needs and
priorities of the SAT and MINFIN. Any changes to the policy and strategic priorities, as well as
ministerial and technical staff delays and/or interruptions in integrating technical work teams, can hinder the ability to sustain and institutionalize reform initiatives over time.
Based on international experience in tax administration and procurement reform, DAI will advance
in supporting activities laid out in this workplan, taking into consideration that sustaining and
institutionalizing changes of the kind FPRP will support require effort and time that may go beyond
FPRP’s project life. FPRP will stress the importance of supporting the SAT and MINFIN managing
time and resources efficiently and effectively, relying also on the assumption that validity and
approvals of reform changes by government counterparts will be timely and opportune.
Furthermore, FPRP’s Year 1 activities focus on developing detailed conceptual models,
implementation roadmaps, and counterparts’ capacity building, to facilitate reform sustainability in
subsequent years and beyond the life of the FPRP project. When possible, and in coordination with
government counterparts, DAI will place emphasis on accelerating implementation of reform activities laid out in this workplan.
Some support activities, particularly those related to the SAT, for example those involving the
redefinition of processes and procedures, may affect the way the SAT does its core business, the
organizational structure of the institution, and other areas across the organization, which may prove
challenging to implement. Particularly, business processes that cut across Intendencias (SAT’s
management units) and across areas such as information technology, may prove once again to be
challenging due to any organizational fragmentation within the SAT. FPRP will make every effort to
create multi-disciplinary work teams that are constantly involved in business process analysis and redefinition, contributing to diminishing risks related to area silos and fragmentation.
Lastly, obtaining the results expected under this contract may be hindered not just by the risks
described above, but also by other internal and external factors that may affect their achievement.
For example, Component 1 contains expected results related to increased revenue collection and
tax compliance levels. These high level results are affected by any shocks to economic performance,
but can also be affected by the type of activities that FPRP implements. Based on SAT’s expressed
needs and priorities for the FPRP assistance, the FRPRP team will support mostly activities related to
business process reengineering, cleansing of the RTU and current account, and tax modeling and
analysis. Nevertheless, FPRP will seek windows of opportunity to support initiatives that combat tax
evasion and informality that can have a greater impact on revenue mobilization, in close coordination
with the SAT, and the multiple donors and multi-laterals already working in the tax audit and control areas.
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FISCAL AND PROCUREMENT REFORM PROJECT YEAR 1 WORKPLAN 11
Below we present specific identified external risks, including probability of risk occurrence, impact,
and risk mitigation actions that FPRP will proactively take into consideration during the
implementation of activities in this workplan. Risk is assessed via the following:
Probability of occurrence: Scale from one (1) to five (5), with one representing the
lowest probability of occurrence.
Impact of risk: Rated as High, Medium, or Low.
Table 2. FPRP Key Risks
Description of the
Risk
Probability Impact Risk Mitigation Actions
Not meeting established
deadlines for project
activities and goals
(2)
High
Establish a monthly project monitoring plan, and promote
activities that gain buy-in of the plan with government
counterparts
Limited institutional
capacity to assign staff to
serve in counterpart
work teams
(3)
High
Define scope and number of counterpart team members
required; request that the Superintendent (SAT) and Vice
Minister (MINFIN) assign the required personnel
Once work teams are
assigned, they do not
have sufficient time
available to attend to
FPRP related activities
(3)
High
Carefully plan all activities to be carried out by the
counterpart team and provide timely follow-up. Closely
coordinate with other donor activities to ensure that the
same staff is not assigned to simultaneous reform
activities
Political Economy
Environment: Change in
Political Leadership
(2)
Medium
Identify and document all the strategic decisions that may
affect FPRP during the life of project, in coordination with
the relevant GoG authorities and USAID (signed MOU)
Delays in gaining required
approvals for proposed
conceptual models and
business process changes
(3)
High
Ensure that work teams are multi-disciplinary and that
key technical core area personnel have full understanding
and endorsement on the proposed changes to be
submitted for high level approval. Provide ongoing
updates on progress to high level officials who can make
timely approvals
Resistance to change in
implementation of
business process and
procedures updates at
the SAT
(2)
High
Require SAT’s technical core teams be involved in the
redefinition of business processes. Support the SAT in
developing a change management strategy, capacity
building and training plan to facilitate appropriate
communication on changes. Fill technical gaps due to
changing functions and responsibilities of personnel
Resistance to change in
processes, procedures
and the Guatecompras
platform, by GOG
entities’ procurement
units
(3)
High
Incorporate a representative sample of procurement
executing units to contribute to the validation process of
the new transactional management model. Support the
DNCAE to develop a change management strategy to
properly communicate changes and specific activities that
can promote understanding and acceptance.
Changes in
Guatecompras IT
platform standards
(2)
Low
Identify the work team responsible for defining the
standards that will be used by FPRP, and maintain
communication with this team to ensure that the project
is aware of any potential changes. Initiate the
development of the first PAC formulation module using
the current MINFIN’s DTI standards.
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Description of the
Risk
Probability Impact Risk Mitigation Actions
Change in Strategy for
the SIAF 4 Project
(2)
Medium
Request approval signatures from the Vice Ministers of
Revenue and Financial Management on the strategies for
the design and development of the Guatecompras
transactional modules and SIAF 4.
Insufficient resources to
implement the new
General Registry for
Government
Procurement
(3)
High
Coordinate with the relevant MINFIN authorities to
ensure that the necessary resources are allocated for the
design and implementation of the new Registry.
Resistance toward
adopting the new
General Registry for
Government
Procurement, by external
stakeholders
(3)
High
Undertake a political economy analysis to analyze the
complex set of political and institutional dynamics, to
identify relevant stakeholders, their interests and power
dynamics, and design strategies to mitigate the risks and
address concerns in the design of the new Registry.
II. PROJECT APPROACH
THEORY OF CHANGE
The theory of change for FPRP holds that if the GOG is able to raise tax revenues through
improved DRM and reduced corruption, and if the GOG is able to improve expenditure
management through public procurement reform, then the GOG will improve its ability to invest in health, education, nutrition, infrastructure, and other public services meeting citizen demand.
OVERALL APPROACH
DAI’s envisions three distinct phases required for successful implementation of the project: needs
assessment and planning; negotiation of detailed interventions; and adaptive implementation. Now
that the first two stages have been completed (with some modifications expected during the life of
project), through close collaboration with USAID and counterparts at the SAT and MINFIN, DAI
can focus on adaptive implementation of activities, continuing to incorporate the following key
elements:
Demand-driven. Through its proposed Year 1 activities, DAI will continue to apply to FPRP a
demand-driven technical approach that will allow the project to focus on identified needs within the SAT and MINFIN that can be achieved within FPRP’s objectives and timeframe.
Flexible programming. DAI’s approach to developing activities has fully accounted for shifting
priorities at the SAT and MINFIN, changes in the political economy, and the impact of other donor
involvement on project activities, as reflected in the proposed activities for Year 1 and collaborative process utilized to develop them.
Ensure local leadership and ownership. Each proposed activity clearly lays out close
collaboration with GoG counterparts in the SAT and MINFIN, articulating how the project will
utilize national and international expertise to transfer knowledge and best practices to government personnel and enhance local leadership and capacity.
Measure performance deliberately and effectively. DAI will use proven capacity assessment
frameworks, tax benchmarking methodologies, surveys, and the indicators in our Monitoring,
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Evaluation, and Learning (MEL) Plan to assess actual improvement and citizen perceptions of
improvement in tax reform and public procurement. The MEL has been carefully developed in close
coordination with project activities to ensure maximum integration.
Maximize forward momentum of reform. The present workplan anticipates that FPRP is a
transitional program paving the way for a larger National Institutional Strengthening Program.
Proposed activities focus on providing high-impact technical assistance to the SAT and MINFIN
during this critical time, maximizing the forward momentum of reforms and facilitating a smooth
transition process to the next program.
Inclusive and gender-responsive reforms. FPRP will integrate gender considerations into all
proposed activities, guided by the Gender Assessment and Integration Plan. Furthermore, the
project will undertake a Gender and Social Inclusion Tax Impact Analysis focusing on the analysis of
disproportionate costs of tax compliance based on gender, ethnicity, and geographical location
(rural-urban). Results from this analysis will help inform reform activities at the SAT with a view to
contribute to actionable policies and activities that can tackle identified issues. For public
procurement, we will explore prospects to make public procurement gender-sensitive, creating
opportunities for women-owned, indigenous, or disadvantaged small businesses, and to make it
more accessible to youth entrepreneurs. Performance indicators will be disaggregated by gender where relevant.
DONOR AND PROJECT COORDINATION
FPRP support will take place within a complex international donor environment, with many other
entities working simultaneously on similar and/or related areas in tax and budget modernization
through different interventions. FPRP will take a key role around donor coordination efforts,
working in close coordination with government partners at the SAT and MINFIN, to ensure ongoing
dialogue, complementarity, and collective efforts to maximize impact and resources. FPRP’s COP
will take a lead role in convening regular meetings, through thematic working groups that compile
relevant donor reports, findings, recommendations, while promoting knowledge sharing, learning
and adaptation across donor programs and thematic areas. DAI will seek options for ease of
communication across working groups including the creation of WhatsApp groups and/or Drop
Box-type folders for assembling relevant documentation.
The following key projects have been targeted for prioritized collaboration and coordination, but
also the more comprehensive list of relevant projects found in Annex B—Select Donor Activities
and Areas for Coordination and Collaboration—including details about proposed FPRP actions for
enhanced coordination and collaboration across projects.
Millennium Challenge Corporation (MCC) and U.S. Treasury Office of Technical
Assistance (OTA): Security and Justice Sector Reform Program, providing customs and
non-customs support.
World Bank: Transparency and Efficiency in Tax Administration Project (forthcoming),
focused on SAT’s governance; tax collection function; tax intelligence and enforcement;
software and hardware updates.
International Monetary Fund (IMF): Centro Regional de Asistencia Técnica para
Centroamérica, Panamá y la República Dominicana, related to tax control, VAT evasion,
customs, and the medium-term fiscal framework.
Inter-American Development Bank (IDB): Has supported the conceptual model
design of an e-procurement system. Support in tax administration modernization.
Fundación para el Desarrollo de Guatemala (FUNDESA): Strengthening public
procurement in the health sector.
German Technical Cooperation Agency (GIZ): - Good Financial Governance Project
(PROFI), supporting revenue administration; tax paying culture; subnational taxation.
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Open Government Partnership: National Action Plan for Open Government 2016-
2018, advancing tax transparency, modernizing the taxpayer registry; and supporting efforts
to comply with international taxation standards.
III. PROJECT ACTIVITIES
COMPONENT 1: DOMESTIC RESOURCE
MOBILIZATION
Guatemala’s tax revenue to GDP at 10.4% in 2016 is significantly below the Latin America and
Caribbean (LAC) average of 16.9%. Low levels of revenue are mostly due to narrow bases and low
tax rates for certain taxes, but also due to widespread evasion, fraud, high levels of informality, lack
of transparency, and weak monitoring and controls. Guatemala’s modest tax collection is also due to
persistently low levels of compliance resulting from outdated core business processes in tax
administration. Furthermore, the taxpayer registry and current account—a fundamental step in
administering taxes—does not provide accurate, reliable taxpayer information, nor does it facilitate
knowledge of the potential taxpayer base.
The objective of Component 1 is to support GoG reforms in the areas of tax policy, administration,
registration, audit, human resources, compliance, customs, and other areas related to domestic
resource mobilization as identified by the Ministry of Finance and SAT and aligned to their strategic
plans and PFM modernization strategies. The main objectives are to raise tax revenues, reduce
corruption, and enhance transparency, while encouraging broad-based economic growth. As per the FPRP scope of work, the expected results for the life of project include:
Improved efficiency in tax collection
Increased tax revenues
Public perception of SAT improved
Tax compliance improved
In preparation for this workplan, the project team held a two-week scoping mission (March 20-31,
2017), engaging an inter-disciplinary team of tax administration modernization experts to gain
greater understanding of the “core business” within the context of the SAT. The scoping mission
explored processes in core tax areas of the SAT, including registration, current account, tax audit
and control, tax collection, taxpayer service, personnel capacity building, and IT. Based on the
findings of the scoping mission, in consultations and consensus with the SAT’s Office of Projects, and endorsement by the SAT’s Superintendent, activities for Year 1 will focus on the following areas:
1. Business process reengineering of SAT’s prioritized core tax administration areas.
2. Improving the accuracy and reliability of the Taxpayer Registry (RTU) and Current Account,
and the effectiveness of select Tax Audit and Control processes.
3. Development and implementation of SAT’s citizen perception survey, taxpayer satisfaction
survey and cost of tax compliance with a focus on gender and social inclusion.
4. Implementation of the MINFIN-SAT agreement on exchange of information.
5. Tax modeling capacity and policy analysis at MINFIN and SAT.
The following section outlines the specific sub-activities and tasks to be carried out in each area, organized by activity.
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Activity 1.1 Business process reengineering of SAT’s prioritized core tax administration areas
A priority of the SAT’s modernization plan is to update
core business processes in core tax administration areas,
with the objective of optimizing the SAT’s operations and
minimizing the resources required to complete tasks.
Reengineering business processes requires an integral
vision of the SAT, guided by the SAT’s strategic
objectives and long-term vision. The FPRP team’s
approach for this activity follows the business process
reengineering cycle shown in Figure 3, coordinating with
work teams at the SAT in prioritized core tax areas,
following 4 stages: (1) identify and map current “as is”
processes; (2) review and analyze the “as is” guided by
questions such as: Why do we do what we do? Why do we
do it as we do? Which is the starting point “as is” and where
are we headed “to be”?; (3) design the “to be” processes;
and (4) test and implement “to be” processes.
1.1.1 Identify and map “as is” business processes in prioritized core tax administration areas of the SAT
During the first five months of Year 1, the project will focus on mapping the current “as is” business
processes in prioritized core tax administration areas under the Business Process Model and
Notation (BPMN) standard, Version 2.0. The SAT’s Office of Projects has developed an initial
inventory of processes. Based on this inventory, the project and the SAT have prioritized the mapping of the following seven core processes:
1. Registry Management
2. Tax Collection and Management
3. Tax Audit and Control
4. Customs (processes related to the registration of importers and auxiliaries of the public
function, based on customs assessment of June 2017)
5. Taxpayer Service
6. Legal Management 7. Management of legal files and documents
A team of FPRP’s tax administration experts in the prioritized core areas will undertake the business
process mapping working jointly with SAT’s work teams in each core process, supported by experts
in the BPMN 2.0 standard. SAT’s work teams will be trained in the BPMN 2.0 standard and process
modeling prior to beginning the mapping task to improve capacities and understanding of their
business processes in graphical notation, as well as the ability to communicate these in a standard
manner. Furthermore, the graphical notation will facilitate understanding of business transactions
across the SAT. This will ensure that different core areas will understand each other’s functions and
will enable adjustments to new internal circumstances quickly. The project expects to have the first set of “as is” business processes mapped by July 31st and the next set by September 30th.
1.1.2 Conduct analysis of current business processes, identify gaps, design
and propose “to-be” processes
After mapping the current “as is” processes in the prioritized core areas, the project will conduct
gap analysis focused on reviewing and analyzing the current processes, within the SAT’s long-term
vision and strategy while taking into consideration optimization through integrity, traceability,
integration, cross-cutting flows, among other. The analysis will identify problem areas, bottlenecks,
Figure 3. The Business Process
Reengineering Cycle
Identify and map "as is" processes
Review and undertake gap
analysis
Design "to-be" processes
Test & Implement
"To-be"
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and reveal potential areas for improvement. It will answer questions such as: how much paper is used
in this process? How many copies of the same document are made? How many person hours are required to
complete the process? Of those hours, how many are spent doing redundant or extraneous work? Where does the process stall and why? When do errors occur?
The business process reengineering work teams will separate the essential from the non-essential
tasks, and will integrate business solutions that apply information technology to automate when
possible, overhaul document-based and manually-based processes, and alleviate concerns over
human error. When necessary, and for more complex processes such as tax audit and control, and
tax collection, the project will conduct a regional study tour—subject to approval—to inform “to-
be” proposals based on good international practices. For example, the project may consider visiting
the Salvadoran tax administration to analyze the country’s Case Selection Management System
(CSMS), which optimizes risk-based audit selection through data mining, automatically assigns tax
audit cases, facilitates tax audit workflows for auditors, and provides a comprehensive performance
management information system to track productivity and effectiveness.
Once work teams develop recommendations on changes to business processes and prepare
proposals on “to-be” processes, these will be presented to SAT’s decision-makers who will validate
and approve per SAT’s protocol. If any proposed changes require SAT’s Directorate’s approval,
FPRP will work closely with the SAT’s Office of the Superintendent to ensure that proposals are
communicated effectively as to minimize delays in approvals. Once approval is gained on new
processes, business process maps will be updated in BPMN 2.0. The timing of these updated maps
will depend upon length of discussions on “to-be” processes as well as time spent in obtaining
approvals. The project aims to obtain approvals for at least two prioritized core processes by the end of FPRP’s first year.
1.1.3 Harmonize information and technological tools in prioritized areas in accordance with reengineered business processes
During the two-week scoping mission to inform the workplan, FPRP got a head start in developing
an initial inventory of the different information and technological tools available at the SAT. Based on
this initial inventory, and in close coordination with the SAT’s Information and Technology
Directorate and the core work teams, FPRP’s IT Systems Architect will lead the analysis of
information and technological tools that will be harmonized to business process reengineering based
on core area users’ needs. A concept model of the proposed changes will be made available which
will include, for example, business process automation, database cross-referencing, exchange of information, etc.
1.1.4 Develop change management strategy as a guide to implementing
changes in business process reengineering
In order to support effective, sustainable reforms implemented at the SAT through business process
reengineering, FPRP will support the development of a change management strategy. This strategy
will serve as a guide to implementing changes in core processes, supporting the SAT’s leadership as
well as the SAT’s planning office and the Office of Personnel training, to communicate “pain and
gain” messages to personnel, articulating the differences between the old versus the new model, and
providing an overall training and capacity building strategy to fill technical gaps that may arise due to
the changing business processes. FPRP’s change management advisor will support the development
of such change management strategy, working in close coordination with the technical work teams
and the new SAT’s Personnel Training Management Directorate, mentoring and advancing SAT’s
staff capacity to manage change.
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1.1.5 Training SAT’s selected teams on BPMN 2.0 standard
Select SAT work teams will be trained on the use of the BPMN 2.0 standard prior to initiating the
mapping of current “as is” processes. This will facilitate knowledge with the notation standard to facilitate the mapping process and understanding of the processes flows across areas.
Activity 1.2 Improve the integrity of the Taxpayer Registry (RTU)
and Taxpayer Current Account (TCA), and enhance the effectiveness of select Tax Audit and Control processes
A fundamental initial step in administering taxes is to ensure consistent, clean, and up-to-date
taxpayer records through the Unified Taxpayer Registry (RTU) and the Taxpayer Current Account
(TCA). For example, registration and numbering of each taxpayer underpins key administrative
processes associated with filing, payment, assessment, collection, and reporting to government. In
the first year, the FPRP project will support the SAT to improve the integrity of the RTU and the
TCA, and in close coordination with the SAT’s Office of Projects and other donors, will seek
windows of opportunity to enhance the effectiveness of the SAT’s tax audit and control processes, aimed at tax revenue mobilization.
1.2.1 Assessment of the RTU, TCA, and tax audit and control, and development of an implementation plan
As an initial step in supporting improvements to the RTU and TCA, the FPRP will assess the status
of the RTU and TCA, led by experienced STTA advisors that have led similar processes in other
countries. In close coordination with the SAT’s core areas, the team will develop a strategy and an
implementation plan, which will include the creation of work teams within SAT, identifying required
information and technology tools to support the cleaning of the RTU and TCA, and developing any training needed prior to implementing the changes.
1.2.2 Implement changes to the RTU
The initial FPRP scoping of the SAT identified that cleaning of the SAT’s RTU may involve the
following tasks:
(1) Cleansing of the SAT’s registries available since the creation of the SAT by determining tax
payment due in accordance with the expiration of the competences of the entities, under
the tax control and collection processes.
(2) Consolidating and establishing whether there is a tax obligation among the 6.7 million
administrative taxpayer identification numbers (TIN) issued, through cross-referencing of
third-party information reporting and data matching to help establish any taxable economic
activity related to those TINs.
(3) Updating key features of the taxpayer registration IT system to help maintain a database of
sufficient, accurate and reliable identifying information to assist interactions with taxpayers
and tax intermediaries (i.e. tax advisors and accountants).
(4) Undertaking initiatives to detect the informal sector (unregistered businesses and
individuals), including the use of third-party information (e.g. information on government
providers from Guatecompras) to identify new business start-ups and economic activity of existing businesses that have failed to register; censuses; and the use of labor force data.
1.2.3 Implement changes to the TCA
Similar scoping of the SAT’s taxpayer current account (TCA) identified the need to tackle the
following:
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(1) Cleansing of tax declarations that lack fiscal interest due to expiration of the SAT’s
legislative provision to collect on tax due.
(2) Complementing information from banking transactions with the incorporation of debits
arising from enforcement and control actions such as hearings, resolutions, court
judgements, etc. Requires legal analysis to determine events that generate obligated
payments. (3) Incorporating credits due to tax resolutions arising from audit events.
1.2.4 Implement changes to the Tax Audit and Control Area
As part of this activity, the FPRP team will explore windows of opportunity to support the
implementation of improvements in the tax audit and control, in close coordination with the SAT
and other donors working in this area. Based on the initial scoping that informed this workplan, the
team of experts identified ways in which the SAT could better exploit the use of data mining
techniques to capture taxpayers’ evasion and avoidance, by closely monitoring taxpayers’ economic
activity using data obtained by the SAT and third-party sources. For example, the focus on a
proposed tax control initiative may include a three-tiered framework of (1) specialized audits for
large taxpayers; (2) massive audits for medium and small taxpayers; and (3) forensic audits to target
informality. Furthermore, assistance may include support to improve the selection of audit cases as
well as the execution of audit cases, both of which are critical for improving the effectiveness and
productivity of audit and control activities.
1.2.5 Assess, design and implement required IT updates to accompany improvements to the RTU, TCA and select tax audit and control areas
Implementing changes to the RTU, TCA and select Tax Audit and Control areas will ultimately
require updates to the information and technological tools available to core area users of the
information and SAT’s technological systems. As such, FPRP’s IT Systems Architect, in conjunction
with the tax administration STTA advisor and SAT’s work teams, will analyze needs in the IT area,
and will define a conceptual model and implementation plan of the new IT systems required to
implement the cleaning of the RTU and TCA and improve select Tax Audit and Control area
processes. This implementation plan may include the design of improvements such as in the form of
use cases developed, as well as any support in software development required to support changes. The specific tasks may be identified once the detailed assessment has taken place.
1.2.6 Strengthen the capacity of SAT’s personnel on par with changing business processes in the RTU, TCA and select tax audit and control
areas
In close collaboration with the SAT’s core area work teams and the Personnel Training Directorate,
FPRP’s RTU, TCA, and change management advisors will support the analysis of technical gaps in
technical profiles in these core areas. This gap analysis will inform the development of training and
capacity building curricula necessary to fill knowledge gaps, while supporting the development of select training modules and training of trainers (ToT), informed by the change management strategy.
Activity 1.3 Develop and implement a citizen perception survey,
taxpayer satisfaction survey, and gender and social inclusion tax
impact analysis
Promoting voluntary compliance and public confidence in the tax system requires the SAT to adopt
a service-oriented attitude toward taxpayers, ensuring that taxpayers have the information and
support they need to meet their obligations and claim their entitlements under the law. Monitoring
taxpayer perceptions of trust, satisfaction with service, and taxpayer cost of compliance are critical tools to help inform reform initiatives.
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1.3.1 Support the design and implementation of a public perception survey
Following the recent corruption scandals in the Government, a major challenge is building a
sustainable tax culture among Guatemalans and improving voluntary compliance. The lack of a tax
culture of compliance stems from the perception of weakness and lack of transparency of public
institutions in general, also affecting the SAT. In 2016, Guatemala recorded the highest social
justification for tax evasion among LAC countries based on Latinobarómetro’s 2016 public
perception surveys.1 FPRP will support the SAT to develop a public perception survey to serve as a
baseline to measure the degree of citizen’s trust, and will support the SAT in developing a
communications strategy for survey results. This activity will be coordinated with the World Bank’s
Transparency and Efficiency in Tax Administration Project (forthcoming) which also involves the
implementation of a public perception survey. FPRP could initially design and implement the first
round of the public perception survey and the Work Bank Project can support subsequent surveys.
1.3.2 Review and improve current taxpayer satisfaction surveys
The SAT, through its Taxpayer Service Office, already seeks taxpayer’s views and feedback in
relation to its delivery of taxpayer service. The SAT has expressed the need to review the current
survey instruments used, such as the methodology, sampling, use, and frequency, and provide
recommendations on improvement. The FPRP team, led by the project M&E expert, will support the
SAT during June and July to review current practices, provide recommendations, and support the
implementation of new survey instruments to obtain feedback from taxpayers on the standard of
services provided. Furthermore, FPRP will support the SAT to communicate survey results internally
so that taxpayer input is considered in the design of administrative processes and products.
1.3.3 Undertake ‘Gender and Social Inclusion Tax Impact Analysis’ with a focus on women and marginalized communities
The SAT, as part of an institutional commitment, has initiated a series of efforts to promote work
environments free of violence. Since 2016, a proposal for new internal regulations include concepts
of harassment on grounds of sex, discrimination, and employment, including institutional sanctions.
To guarantee equality of opportunities for women and men, the SAT increased recruitment of
women in decision-making positions. Currently, the SAT is pending Directorate’s approval to
establish a Gender Unit and which will be responsible to develop the Institutional Gender Policy to guide actions that tackle persistent gender inequalities.
However, the issue of gender inequality and social inclusion related to taxation extends beyond
internal institutional issues at the SAT. A fiscal incidence analysis based on the 2009-2010 National
Survey of Family Income and Expenditures reveals that the current fiscal (tax and transfers) system
does little to reduce inequality and overall poverty.2 Joining SAT’s current efforts in gender, the
FPRP’s COP and M&E expert supported by STTA experts will conduct a Gender and Social Inclusion
Tax Impact Analysis focusing on measuring disproportionate costs of tax compliance based on
gender, and other underserved populations by ethnicity and along rural-urban lines. This study may
improve understanding of the any disproportionate compliance costs through surveys, focus groups,
and through gathering information from other USAID projects that work at regional levels such as
USAID/Nexos Locales and USAID/Improved Urban Municipal Governance. This study may result in
1 Results from the 2016 Latinobarometro may be found at the following website address: http://www.latinobarometro.org/latNewsShow.jsp
2 Cabrera Maynor, Lusting Nora and Moran Hicias E. (2015); Fiscal Policy, Inequality, and the Ethnic Divide in Guatemala; Center for Global Development, Working paper 397, March 2015
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a gender and social inclusion strategy that identifies, for instance, the most important factors
affecting compliance costs by type of population, by geographical location, which the SAT can use to
inform its Gender Policy as well as the redesign of business processes that may facilitate engaging with women and other underserved populations.
Activity 1.4 Implement the exchange of information agreement SAT-MINFIN
On October 24, 2016, the SAT’s Superintendent and MINFIN’s Minister signed the institutional
exchange of information agreement between the SAT and MINFIN. Operationalizing the agreement
requires supporting the SAT’s Planning and Institutional Development Directorate and MINFIN’s
Fiscal Policy and Analysis Directorate (DAPF) to: (1) define the conceptual model and identification
of criteria for the exchange of information; (2) design the technical requirements for the automatic
exchange of information; and (3) support any software development based on the conceptual model.
FPRP will provide advisory support to develop the criteria that meets the agreement’s standards
such as the appropriate protocols, formats, standards, including fulfillment with data confidentiality
requirements. FPRP’s IT System Architect will further support the design of technical requirements
and software developments involved in operationalizing the automatic exchange of information.
FPRP’s COP will advise on the data technical requirements that can mutually serve SAT’s and
MINFIN’s purposes, such as SAT’s use of the Guatecompras’ registry of governments providers and
contracts as input for tax control initiatives, as well as MINFIN’s use of tax return level data to
support the development of a formal revenue projection model and micro-simulation model that can
estimate current and future changes to tax legislation for internal taxes (income and VAT) and trade taxes.
Activity 1.5 Improve tax modeling capacity and policy analysis at
MINFIN and SAT
FPRP has identified the need to bolster the skills, capacity and confidence of tax policy analysts at
MINFIN and SAT, providing them with the skills and tools necessary to do tax modeling and to
translate evidence into solid policy proposals. The FPRP team will work with analysts at MINFIN and
SAT to develop key tax models, produce policy analysis, fostering their sense of ownership and
entrepreneurial spirit in tax reform proposals. Revenue forecasting and micro-simulation modeling
will use MS Excel, which is widely used and is considered the most appropriate based on analysts’
capacities. MINFIN’s DAPF has expressed that they lack the appropriate licenses to use MS Office to
run the model, with the appropriate data analysis tools in MS Excel, and to write the reports
required in MS Word. FPRP will support the purchase of MS Office licenses required by MINFIN’s
personnel, thereby supporting access to software to properly run and use the models and report on
results.
1.5.1 Develop a micro-simulation model to estimate revenue yield for current tax law and proposed changes to current law
The FPRP’s economic modeling advisor and COP will support the MINFIN and SAT to develop a
microsimulation model to serve as a tool for estimating the impact of current tax law (i.e. income,
VAT and trade taxes) and tax change proposals on taxpayers and revenue yields. FPRP will support
the different stages in developing such a model while building the capacities at MINFIN and SAT to
(1) update the data set based on income and VAT tax return data and macro variables; (2) update
and run the tax calculator for computing taxes, and (3) develop policy briefs using the model that
may inform evidence-based policy discussions. The project will provide appropriate user guides and
training on the use of model to ensure in-house capacities on the use and interpretation of the model and results.
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1.5.2 Develop tax revenue projections model to serve as input for the Medium-Term Fiscal Framework (MTFF)
The FPRP’s economic modeling advisor and COP will strengthen the economic modeling capacities
at the MINFIN and SAT by supporting the development of a revenue projections model to serve as
input into the Medium-Term Fiscal Framework (MTFF). Furthermore, FPRP will strengthen the
capacities at MINFIN and SAT to update and run the model, and present and defend results, building
confidence in their use by senior decision-makers. MINFIN’s Fiscal Policy and Analysis Directorate
(DAPF) currently produces revenue forecasts that inform the medium-term fiscal framework, using
basic extrapolation methods as the main forecasting method, where significant discretionary
adjustment may take place. This activity will support MINFIN and SAT to improve the formality of
the forecasting methodology, will explore the use of disaggregate data by producing quarterly
revenue forecasts, and will introduce formal revisions and adjustments, while improving the
transparency of results between MINFIN and SAT.
1.5.3 Undertake select tax studies focused on tax base broadening and revenue mobilization impact
To inform and prioritize tax reforms, FPRP’s COP will work with MINFIN and SAT, other donors
and multi-laterals, and local resource partners (i.e. think tanks), to identify and prepare select tax
studies that can provide viable, evidence-based proposals to broaden the tax base and promote
revenue mobilization. For example, such studies may follow-up to the International Monetary Fund’s
tax policy assessment and follow up on identified tax measures for revenue mobilization; and/or
studies my also focus on new DRM initiatives such as how to incorporate and tax the informal
sector; quantify and analyze income tax evasion; conduct a cost-benefit analysis framework for new
tax incentive proposals; or undertake a VAT gap analysis. FPRP will place considerable emphasis on
developing the internal capacity of policy analysts at MINFIN and SAT to undertake tax analysis and to draft and evaluate tax policy recommendations.
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Component 1 Key Milestones and Deliverables for Year One
Milestones and Deliverables Deadline Output
1.1 Prioritized core tax areas “as is” processes
mapped in BPMN 2.0 standard
Sept. 30, 2017 Document
1.1 At least 2 prioritized core tax areas with gap
analysis and “to-be” proposals developed
Jan. 20, 2018 Document
1.1 Change management strategy developed to
guide implementation of new business
processes
Jul. 30, 2017 Document
1.1 Select SAT work teams trained on BPMN 2.0
standard
Jul. 30, 2017 Number of SAT
personnel trained
1.2 Conceptual model and implementation plan
for cleansing of the RTU and Current Account
developed
Aug. 30, 2017 Document: concept
model and
implementation plan
1.2 50 % cleaning of the defined sample from RTU
and Current Account
Jan. 20, 2018 Number of records
cleansed
1.2 Information and technology system conceptual
model developed to support RTU and
Current Account cleansing
Sept. 30, 2017 Document
1.3 Perception survey implemented, including
study protocol and final report
Sept. 30, 2017 Document
1.3 Gender and Social Inclusion Strategy
Developed
Oct. 30, 2017 Document
1.4 Exchange of information SAT-MINFIN use
cases developed based on approved
conceptual model
Aug. 30, 2017 Use cases document
1.4 Exchange of information SAT-MINFIN module
developed (beginning of exchange of
information between institutions)
Jan. 20, 2018 Module
1.5 Microsimulation clean data set developed for
VAT and income tax
Sept. 30, 2017 Excel file with data
set
1.5 Revenue projections clean data set developed
for VAT and income tax
Nov. 30, 2017 Excel file with data
set
1.5 One tax study developed focused on base
broadening and revenue mobilization
Jan. 20, 2018 Document
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COMPONENT 2: EXPENDITURE MANAGEMENT AND
PROCUREMENT REFORM
The objective of Component 2 is to improve expenditure management and further procurement
reform efforts. As per the FPRP scope of work, the expected results for the life of project include:
Enhanced competitiveness in public procurement.
Improved transparency of procurement processes.
Strengthened controls and safeguards in the procurement process Business sector confidence improved in the public tendering process.
In preparation for this workplan, the project team held numerous, ongoing consultations with
MINFIN to determine the desired focus, activities, and results for Year 1 of FPRP. Based on these
consultations, activities for Year 1 will focus on the following areas:
1. Transform Guatecompras into a transactional management system
2. Create the General Registry for Government Procurement
3. Develop the public works’ transparency indicators conceptual model
4. Improve the use of framework contract for emergency government procurements
5. Human and institutional strengthening of the General Directorate of Public Procurement (DGAE)
The following section outlines the specific activities to be carried out in each area, organized by area.
Activity 2.1. Transform Guatecompras into a transactional management system
Guatecompras is a system that has been functioning as a repository of information generated
throughout the procurement process. While this represents a positive step in terms of
transparency, there is room for improving the public procurement process as well as the
Guatecompras electronic platform itself. FPRP will support the MINFIN to improve public
procurement, prioritizing the development of a transactional platform for Guatecompras, integrating
it into the public financial management system, creating a General Registry for Government
Procurement, and strengthening the capacities of the public procurement directorate to meet targets and legal deadlines by law.
2.1.1 Review public procurement normative and legal framework, and
conduct process gap analysis
Based on input from the National Directorate of Public Procurement (DNCAE,), there is a need to
reform relevant laws, regulations and procedures related to Guatecompras. While updating
processes and procedures of the system itself are important, improved efficiency and compliance
with the amendments to the National Procurement Law (Decree 46-2016 of October 27, 2016)
must also be incorporated.
A work team of three DNCAE technicians led by Component 2 lead, will begin the gap analysis
activity in April 2017. The team will review the processes and procedures for the entire acquisition
cycle, defining the gaps with the prior analysis of current laws and regulations governing acquisition.
STTA public procurement specialist Alex Rivera and the Component 2 lead will develop the
strategic and transactional model for all phases of the procurement cycle. This activity will be
implemented in parallel with the design of use cases (activity 2.1.7), providing needed information on Guatecompras processes and procedures to the IT team responsible for software development.
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2.1.2 Business process redefined based on gap analysis
Following the results and recommendations of the gap analysis, the team will work with DNCAE to
redesign business processes for improved efficiency and transparency, focusing on processes for the
Annual Procurement Plan (PAC) and the General Registry for Government Procurement. The new
redesigned business processes will be updated in the initial maps using the BPMN 2.0 standard,
providing a notation that is intuitive to business users yet able to represent complex process semantics.
2.1.3 Develop Guatecompras implementation roadmap
The Guatecompras implementation roadmap will outline the activities, timeline, milestones, and
support needed to streamline system use. The road map will take into consideration the redefined
business processes as well as the conceptual transactional model for Guatecompras, the strategy for IT integration, and the PAC formulation software to be designed and constructed.
2.1.4 Design conceptual transactional model for Guatecompras
With the inputs generated from activities 2.1.1 and 2.1.2, the project will prepare a conceptual
transactional model for Guatecompras. This will require a detailed analysis of relevant financial
processes (SICOIN and SIAF 4) to establish the information flows, from budget formulation to
budget execution, including treasury and accounting. The new Guatecompras transactional model
will incorporate international best practices in the field of e-procurement, for example by
transforming a reporting platform into a transactional platform, starting with the PAC, and compiling
government entities’ procurement needs codified through a catalogue compatible with the UN
standards for classifying goods and services that is integrated to the GOG’s budget account classifiers’ catalogue.
FPRP advisors will support the creation of a new UN-Budget Goods and Services Catalogue that
integrates procurement items with the appropriate budget classification. This Catalogue is a
requirement for the PAC formulation and will also serve as the basis for entering information into
the new Registry to classify the types of goods and services that a provider offers. Currently,
MINFIN has a catalogue of goods only, based on an older version of the UN Catalogue, which has
been contaminated by duplicate entries of the same item by allowing executing units the flexibility to
create new entries at their discretion. The FPRP team will support DNCAE to create such UN-
Budget Catalogue based on the United Nations Standard Products and Services Code (UNSPSC).
FPRP will facilitate access to the latest version of the UNSPSC Catalogue (requires a fee payment) to serve as basis for the new catalogue creation.
2.1.5 Validate and approve conceptual model of Guatecompras
Obtaining approval from the highest authorities in the Ministry of Finance (specifically the Vice-
Minister of Revenue and Fiscal Evaluation) is a key element to progress in the first phase of the
Guatecompras conceptual model. Once validation and approval is gained, the next step is to develop the IT strategy for integrating Guatecompras into the public financial management system.
2.1.6 Develop strategy for IT platform integration of Guatecompras and the Integrated Financial Management Information System
It is essential for Guatecompras to define the strategy for development and integration of IT
platforms and standards, as this provides a foundation for software development and its integration
with the public financial management system. Toward this, the project proposes creating a team of
technicians from MINFIN (DTP, DNCAE and DTI), with the support of the project’s procurement
specialist consultant and FPRP’s IT Systems Architect. As a first step, the project will propose a
model that is flexible and autonomous—meaning the integration between Guatecompras and the
financial management system currently used in Guatemala’s public sector. As a second step, and
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provided that the GOG advances in the upgrade of the SIAF 3, FPRP will advance the automatic
integration between Guatecompras and the new SIAF 4 system. This will facilitate flexible
connection and integration with any platform for SIAF 4 in the processes of budget formulation,
treasury and accounting (including checking budget availability and registering budget commitments,
budget accrual and payment). Flexible integration will allow Guatecompras to advance within the
times proposed for the implementation and stabilization of the software, without limitations from the SIAF 4 project.
2.1.7 Design use cases for PAC Formulation Module of the Guatecompras
This first phase will be designed by the project with support of the DNCAE counterpart team,
utilizing the use cases methodology. This will contain the diagrams of screens and detailed business
rules to determine all features expected in the new PAC formulation module. These use cases will
be developed with the DNCAE counterpart team. Use cases should consider the functionalities for
the different steps and actions needed to submit procurement requests and apply the codification of
the catalogue. This will facilitate consolidation of different requests by grouping them into
contracting processes according to criteria established by the National Procurement Law. For the
PAC approval process, financial areas will need to be incorporated in an automated manner with the
approved budget allocations. With this step, the PAC can be moved to approval and will be
published automatically in Guatecompras, allowing for a more transparent estimate of the demand
for goods, services, and public works.
2.1.8 Develop PAC Formulation software in Guatecompras
It is essential for the Guatecompras’ activity to define the IT strategy for development and
integration of platforms and standards. This strategy will be used to guide the software development
and its integration with the public financial management system. To advance this activity, the project
proposes establishing a team of technicians from MINFIN (DTP, DNCAE and DTI) with the support
of FPRP’s IT Systems Architect. As a first step, the project team will propose the standards and
technology to be addressed. As an initial recommendation on the use of standards for software
development of Guatecompras’ modules, the FPRP team proposes to move forward with the
current standard at MINFIN (Visual Studio .NET and Oracle database) for the development of the
first phase (PAC formulation). This recommendation is justified by (a) the capacity and command of
the standard (Visual Studio .NET and Oracle database) by DTI of MINFIN; and (b) greater certainty
for obtaining short-term results. In future phases, a new standard of development could be adopted
resulting from the team’s proposal and approved by the highest authorities of MINFIN. The team expects to have the PAC Formulation module software fully developed by January 2018.
Activity 2.2 Create the General Registry for Government
Procurement
Currently, the registration of government providers that wish to sell goods, services or public works
to the GOG is distributed among three different entities. These are (1) the Registry of Construction
Contractors at the Ministry of Communications, Infrastructure, and Housing; (2) the Registry of
Consultants at the Planning Secretariat; and (3) the Registry of Contracts at the General
Comptroller agency. The latest reform on the National Procurement Law establishes that all these
registries must be integrated and managed by MINFIN through creating the new General Registry for Government Procurement which must be functional by December 31, 2018.
2.2.1 Design conceptual model for the General Registry for Government
Procurement
FPRP advisors will support the MINFIN in the design of the new conceptual model for the General
Registry for Government Procurement. Designing the new Registry based on the legal framework
per the new Public Procurement law and unifying the existing registries of pre-qualified providers is a
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critical activity that MINFIN must achieve by December 31, 2018. FPRP advisors will work closely
with MINFIN’s Planning Directorate and DNCAE to identify the inventory of the law, regulation,
processes, and procedures related to the new Registry as well as the organizational and functional aspects to ensure the establishment of the Registry and the new area at MINFIN.
2.2.2 Develop business processes for Registry
FPRP will support MINFIN’s DIPLANDI to develop business processes for the new General
Registry for Government Procurement. The new business processes will be modeled using
the BPMN 2.0 standard, to assist business users to establish a common understanding of the
processes and to guide the design of use cases for the Registry.
2.2.3 Validate and approve conceptual model of the General Registry for
Government Procurement
Obtaining approval from the highest authorities in the Ministry of Finance is a key element to
progress in the first phase of the new General Registry for Government Procurement conceptual
model. Once validation and approval is gained, the next step is to design use cases and software
development.
2.2.4 Design use cases for General Registry for Government Procurement module
The conceptual design of the General Registry for Government Procurement will address all the
features and administrative and legal controls established in Article 71 of the National Procurement
Law, which states that "the General Registry of government procurement is ascribed to the Ministry of
Finance. It aims to register individual or legal persons, national or foreign, to be enabled as contractors or
suppliers of the State, in the modalities of public procurement set out in the law. The registry shall verify the
financial and technical capacity as well as the needed experience and specializations to be a contractor or
supplier of the State and to conduct related business with the concerned state. It contains interdisciplinary
staff and resources to meet its goals with objectivity and quality."
Furthermore, "the registry is responsible for the controls, updates, security, certainty and publication of
information and rights of registered persons. Registration is electronic and will use up-to-date technological
means to ensure compliance with the Law of Access to Public Information, as well as disqualification or
disabilities…The Ministry of Finance shall have the right to regulate tariffs to charge its users, which are
proprietary for the operation, strengthening and modernization of the same."3
FPRP, with the support of STTA consultants and a team of MINFIN counterparts, will present the
proposal for a conceptual model and use cases to design the new General Registry for Government
Procurement. The model must satisfy the functionalities and characteristics established in the
National Procurement Law, as well as the functionality of a portal for electronic transactions where
3 The Law further states: Linkages or functional and technological integrations that the new Registry should contain include "registration
will be interconnected for the purpose of obtaining and cross-referencing information with other entities and records, including but not limited to: the General Property Registry (El Registro General de la Propiedad), the General Mercantile Registry of the Republic (El Registro Mercantil General de la República), the National Registry of Persons (El Registro Nacional de las Personas), the Unified Tax Registry (el Registro
Tributario Unificado), the Registry of Legal Persons (El Registro de las Personas Jurídicas), The judiciary (El Organismo Judicial), the National
Institute of Statistics (El Instituto Nacional de Estadísticas), the Guatemalan Institute of Social Security (El Instituto Guatemalteco de Seguridad Social), the Supreme Electoral Tribunal (El Tribunal Supremo Electoral), the Auditor-General (la Contraloría General de Cuentas), the Ministries and Secretariats of State (Los Ministerios y Secretarias de Estado), decentralized and autonomous entities, among others."
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providers can obtain information to develop and present offers and access notifications, and in general increase the participation of government providers in public procurement.
2.2.5 Develop job profile recommendations for the new Directorate of the
General Registry for Government Procurement
The institutional structure that will support and manage the new General Registry for Government
Procurement is essential to ensuring quality, timely and reliable information on public procurement
of goods, services, and public works in the Guatemala government. FPRP proposes forming a team
of technical counterparts at the to-be created Directorate of the General Registry for Government Procurement, with the support of the project’s expert consultants.
The project will start by analyzing and developing recommendations for the various technical
position profiles and an organizational structure within the new General Directorate of National
Procurement, which is proposed to be part of the new Vice-Ministry of National Procurement. The
new structure for the Directorate of the General Registry for Government Procurement will
respond to best practices in management, such as needed competencies and soft skills, as well as specialized expertise in national contracting and electronic public records.
2.2.6 Software development for the General Registry for Government Procurement’s module
The FPRP project will support software development of the new module for the General Registry
for Government Procurement, based on the conceptual model and use cases designed in activity
2.1.7. The standards and platform for the development of the new Registry will be aligned with the
implementation of the new system for transactional management in Guatecompras. It will be
integrated with the procurement transaction cycle where potential bidders will be sent an invitation
to submit technical and cost proposals, based on the level of expertise required in the notices of
public procurement. MINFIN teams with support from FPRP advisors will then test and implement the new registration modules by phases.
2.2.7 Upload and integrate other providers’ registries into the new General Registry for Government Procurement, including MIPYMES
The FPRP team will support MINFIN to feed the new General Registry for Government
Procurement with records from other existing registries, such as the registry of prequalified
contractors currently administered by the Ministry of Communications, Infrastructure and Housing;
data from the registry of pre-qualified consultants currently managed by SEGEPLAN; and the registry
at the SAT. The new General Registry for Government Procurement module will allow, for the first
time, to classify government providers as micro, small and medium-sized enterprises (MIPYMES
acronym in Spanish), according to the parameters defined by the Ministry of Economy (MINECO)
based on the Government Agreement 211-2015 of September 25, 2015.4 The MIPYMES classification
is only available through the SAT’s registry, and therefore data from the SAT will be cross-
referenced with providers’ NITs and sales information reported to the SAT. This information will be
added for each provider, and the classification will be encoded using the standard supply catalogue,
which will be used as the standard catalogue for the generation of procurements managed through
4 A Microenterprise is one that has 1 to 10 workers and annual gross sales not to exceed a total 190 non-agricultural minimum wages, between Q 2,530.34 and Q 480,764.60 in 2015. A small business, between 11 and 80 workers, with
annual gross sales between 190 and 3,700 minimum wages, equivalent to Q 483,294.94 and Q 9,362,258.00 respectively.
Medium-sized enterprises to have between 81 and 200 workers and annual sales between 3,701 and 15,420 minimum non-
agricultural wages, between Q 9,364,788.30 and Q 39,017,843.00 in 2015. Those that exceed these parameters are
considered big companies.
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the new Guatecompras system. This will create a baseline of government providers that can
automatically be invited to participate in electronic procurement. The FPRP will work in close
coordination with MINECO-MINFIN’s MIPYMES initiative to support the onboarding of MIPYMES as
government providers into the new Registry, initially focused on the food service and auto repair shop service providers.
Activity 2.3 Develop the public works’ transparency indicators conceptual model
A high proportion of the budget allocated to government procurement is used to finance
construction of public infrastructure in Guatemala. Improving information available on public works’
contracts, that is quantifiable, user-friendly, and available to the public, contributes to improved transparency and accountability on the use of public funds.
2.3.1 Design conceptual model for transparency indicators in public works
In order to develop a conceptual model of transparency indicators for public works, FPRP will
review the Construction Sector Transparency Initiative (CoST) methodology, an international, multi-
sectoral initiative to increase transparency and accountability in the construction sector through the
establishment of Key Project Information – Información Clave del Proyecto (ICP). FPRP will further
engage with key stakeholders working on fiscal transparency-related matters in public works
including the Open Government Partnership and relevant CSOs to inform this conceptual model.
The resulting project information will allow stakeholders to better understand the cost and quality of public infrastructure investments.
This conceptual model is critical to ensure that the development of the Guatecompras as a
transactional platform takes into consideration any required information and processes that need to
take place to ensure systematic and timely disclosure of information once the new Guatecompras
transactional system is implemented. The conceptual model may, for example, require that executing
units follow specific steps (i.e. uploading of documents, filling out required data fields, etc.) during
the procurement cycle to ensure that transparency information becomes available through the Guatecompras Portal.
Activity 2.4 Improve the use of framework contracts for government emergency procurements
Guatemala is a country subject to high risk from natural disasters. In the event of a disaster and/or
emergency, the GoG requires the ability to help those affected to procure goods and services in a
quick and effective manner. The FPRP team will support MINFIN in developing a strategy to improve the process of conducting emergency procurements in the case of an unfortunate emergency event.
2.4.1 Conduct study tour to Peru to envision a framework contract
mechanism for emergency procurements
The project proposes conducting a study tour to Peru to learn about the experiences of the
Organismo Supervisor de las Contrataciones del Estado del Perú (Supervisory Agency for National
Procurement of Peru, OSCE) and the Central de Compras Públicas (Public Procurement Center,
PERUCOMPRAS) regarding the implementation and latest advances in contracting and procurement
via framework agreements, particularly on supplies for national emergencies such as natural
disasters. Participants of the study tour – which would include staff from DNCAE,
USAID/Guatemala, and the FPRP team – would learn about best practices and successful experiences in framework agreements and framework contracts for this purpose.
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2.4.2 Develop first draft of emergency procurement purchase list under framework contract mechanism
Following the study tour in Peru to learn about the experiences of OSCE and PERUCOMPRAS, the
DNCAE, with support from FPRP experts, will develop a proposal of bidding rules and a list of
critical supplies of goods and services to execute the contracting procedures under a framework
contract (contrato abierto) mechanism, with the objective to inform the preparation of framework
contracts for emergency procurements in 2018. This activity will require coordination among different national entities involved in the Guatemalan emergency committee.
2.4.3 Develop implementation roadmap for emergency procurement framework contracts
The government emergency procurement implementation roadmap will outline activities and a
timeline that may guide MINFIN to ensure that emergency procurement framework contracts are
implemented in 2018. The roadmap will take into consideration lessons from Peru’s study tour, the
emergency purchase list and the procedures to establish an open contract framework that facilitates
procurement process in the case of an unfortunate emergency event. Currently, implementation of a
framework contract follows three phases: (1) preparation phase; (2) award phase; and (3)
contracting phase. The implementation roadmap will take into considerate the phases in framework contracting allowing proper planning for implementation in 2018.
Activity 2.5 Conduct human and institutional strengthening of the General Directorate for Public Procurement (DGAE)
Organizational and human resources capacity are key to improving the government procurement
processes. According to the National Procurement Law, a new organizational structure will be put
in place to replace the actual DNCAE. Definition of job profiles and a training plan are aimed at filling the structure with capable personnel.
2.5.1 Deliver BPMN 2.0 training
Mapping of improved business processes under the BPMN 2.0 standard will require training on the
methodology of MINFIN personnel assigned to work teams. FPRP expects to deliver this training in May 2017, immediately preceding the business process mapping activity (2.1.1).
2.5.2 Recommend change management strategy
As part of the institutional strengthening plan for the DGAE, FPRP will support development of a
change management strategy incorporating a Specialized Training and Education Plan to define and
implement strategies for change management and capacity building. The goal of this activity is to
facilitate the adoption of the changes and updates stemming from improved processes and
procedures and the use of the new Guatecompras, particularly for GoG entities responsible for
adopting the new procurement processes and system. The Plan will include content and a timeline
consistent with FPRP programming.
2.5.3 Conduct gap analysis of current DNCAE structure
This activity will help determine any gaps between the current organizational structure of DNCAE
and the new structure of the state procurement governing body, as established in Article 15 of the
Ley de Contrataciones del Estado, which states that the new General Directorate for Public
Procurement (DGAE) is the public procurement governing body responsible for facilitating
processes and proposing and approving relevant regulations. The objective of the new DGAE is to
ensure that public procurement is developed within a general framework of transparency,
accountability, efficiency, and competency. Its priority functions include design, administrate,
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regulate, and implement policies for the development of Guatecompras; establish procedures for the
proper application of public procurement legislation; coordinate the open tender mechanism, and
certify public officials and employees.
The new structure of the DGAE is currently under design by MINFIN. FPRP will support MINFIN’s
work team in this area to support the definition of the new structure, which is key to advancing the
implementation of a sustainable reform process. Given the FPRP project timeline, implementation and stabilization of the new Guatecompras will be the responsibility of the MINFIN.
2.5.4 Recommend technical job profiles for the new DGAE
The DGAE, with support from FPRP project experts, will conduct the analysis and provide
recommendations on technical job profiles and proposed organizational structure for the new
DGAE. The new DGAE is proposed to be part of the new Vice Ministry of National Procurement (Viceministerio de Adquisiciones del Estado).
2.5.5 Develop training and capacity building plan
FPRP will strengthen the skills of DGAE personnel to implement the improved Guatecompras
system. Additionally, the project will provide technical assistance to develop a training and capacity
building plan for the users at the public procurement institutions, as well as to the governments
providers. Training will be delivered through the training of trainers approach, ensuring enhanced capacities of DGAE personnel to lead the training of GOG entities nation-wide.
2.5.6 Design and implement citizen perception survey for government
procurement
FPRP will measure the level of trust that citizens have on government procurement processes, to
establish a base line that can be used in Year 2 to measure the impact of the project’s activities on
business sectors’ perception on public procurement reform and Guatecompras. Results from this
survey can inform key MINFIN personnel about current and new initiatives that take into
consideration valuable feedback from the business sector.
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Component 2 Key Milestones and Deliverables for Year One
Milestones and Deliverables Deadline Output
2.1 Public procurement normative and legal
procedures: PAC formulation and
Procurement Registry
Sept. 29, 2017 Recommendations
report
2.1 Conceptual transactional model for
Guatecompras
Jul. 31, 2017 Document
2.1 Guatecompras and Integrated System for
Financial Management platforms integration
plan
Aug. 31, 2017 Recommendations
report
2.1 Use cases completed for PAC formulation
module.
Aug. 31, 2017 Use cases document
2.1 PAC formulation module in Guatecompras Jan. 20, 2018 Guatecompras PAC
formulation module
2.2 Use cases for General Registry for
Government Procurement completed
Oct. 31, 2017 Use cases document
2.2 Procurement Registry module developed and
integrated into Guatecompras
Jan. 20, 2018 Procurement
Registry module
2.2 Initial providers’ information entered in the
Procurement Registry based on migration of
information from current external registries
Jan. 20, 2018 Data base
2.3 Indicators model for transparency in public
investment
Jan. 20, 2018 Document
2.4 Emergency purchase list under framework
agreements developed
Nov. 30, 2017 Document
2.4 Road map on Emergency purchase list under
framework agreements developed
Nov. 30, 2017 Document
2.5 Recommendations developed for job profiles
within new Directorate of Government
Providers
Jan. 20, 2018 Recommendations
report
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IV. PROJECT SUPPORT
SHORT-TERM TECHNICAL ASSISTANCE (STTA)
Technical STTA Pool
To maximize project resources, ensure appropriate phasing of work, and optimize matching of
expertise to counterpart needs, the full-time project team will use the services of technical experts
to carry out distinct scopes of work (SOWs). Many have worked with DAI in El Salvador, Jordan,
Liberia, and elsewhere implementing PFM reforms, and have established records of success in
supporting government institutions in tax policy, administration, and audit, as well as
media/communications, IT engineering and administration, public procurement, and business process re-engineering.
Our STTA pool includes Business Process Reengineering Experts, Tax and Customs Modernization
Experts, IT Programmers, Public Procurement Experts, Private Sector/SME Experts, IT Engineers, IT
Database Administrators, Gender/Inclusion Experts, Training and Capacity-Building Experts, Tax
Policy Experts, Tax Modelling Experts, Tax Attorneys, Tax Audit Experts, and Taxpayer Service
Experts.
For a complete list of expected technical STTA, their areas focus, purpose and estimated LOE please
see Annex C, Technical STTA pool.
Operational STTA Pool
In addition to short-term technical needs, DAI’s home office team for FPRP will provide operational support and technical guidance to the project staff via STTA.
Personnel Focus area Purpose Proposed
LOE Year 1
Jaime
Crawford
Project
Management
TAMIS Specialist
Maintain the TAMIS system based on project
specific technical implementation data tracking
needs
Train project staff on its functions and use
15 days
TBD FAS Specialist Train project staff on Field Accounting System (FAS)
to support successful project financial management
20 days
Lauren
Zinser
Project Associate Maintain link between field staff and home office
support departments such as contracts, finance,
accounting, payroll, and IT
Provides operational support and training to project
staff
14 days
TBD IT Specialist Support the configuration of IT systems in country,
train Local IT support, and provide troubleshooting
support from the HO
7 days
TBD PFM Practice
Manager Serve as technical advisor to the COP and project
staff
TBD
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INTERNATIONAL TRAVEL PLANS
FPRP will conduct select study tours to learn from the regional experience in implementing similar
tax and procurement reform activities as those the GOG is embarking. Study tours will allow SAT
and MINFIN counterparts to analyze the reform activities and approaches followed in other
countries that have successfully implemented similar reform; will help them calibrate those changes
by adapting these to the Guatemalan context; and will guide the implementation of sustainable reform activities.
FPRP will follow regulation ADS 253 and 252 for any training and international travel plans in
compliance with exchange visitors’ requirements. Any study tour to take place in a third country will
be communicated to the USAID mission on a timely manner to meet appropriate procedures and
approvals prior to any travel taking place.
In year one, FPRP envisions delivering two study tours, subject to USAID approval, one for the SAT and one for the public procurement reform area:
Component 1: Conduct one regional study tour to inform “to be” proposals in business
process reengineering based on good international practice. The purpose of this study tour
is for select SAT personnel to learn from the experience in business process reengineering
in core tax administration areas. Options include: El Salvador’s experience with taxpayer
registry and current cleansing, and Chile’s implementation of tax audit and control
techniques, including strategic large taxpayers’ investigation and controls.
Component 2: The purpose of this study tour is for select DNCAE personnel to learn from
regional experience in procurement modalities and techniques in response to national
emergencies such as natural disasters. Options include: Peru’s experience with emergency
government procurements via framework contracts (contrato abierto).
Table 4. List of study tours
CAPACITY BUILDING TRAINEES
ESTIMATED
PERIOD OF
PERFORMANCE
Component 1: Domestic Resource Mobilization
Study tour to inform “to be” proposals in business
process reengineering based on good international
practice
3 SAT employees, 2 DAI
consultants, 1 USAID employee –
Up to 6 participants
August and
November/2017
Component 2: Expenditure Management and Procurement Reform
Study tour to Peru to envision the framework
contract modality related to emergency procurements
3 MINFIN employees, 2 DAI
consultants,1 USAID employee –
Up to 6 participants
July/2017
TRAINING PLAN
FPRP will place considerable emphasis on ensuring local leadership and ownership in the
implementation of activities in this workplan through carefully crafted capacity building and training
activities. As stated in this workplan, FPRP will support our counterparts at SAT and MINFIN to
develop change management strategies complemented by capacity building and training plans. These
strategies and plans will contribute to build the capacity of counterparts to manage the reform
process sustainably, ensuring that not only technical capacities are filled but also that acceptance and
buy-in are gained. FPRP technical advisors will be embedded at both the SAT and MINFIN, and will
be constantly supporting counterpart teams, but will not substitute for the capacity of government
employees or set in to perform their duties.
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FPRP will provide capacity building assistance through local and international STTA. Training and
capacity building plans will provide the guidance to develop and deliver effective training activities.
For example, training courses will be developed based on gap analysis of current technical profiles
versus the new technical skills required to perform the job. These technical gaps will then inform the
development of course curricula and ultimately training modules. FPRP will place emphasis on on-
the-job-learning, training of trainers (TOT) as facilitators of learning, and coupling training initiatives
with specific practical application of learning, such as specifying specific resulting outputs,
contributing to more sustainable capacity building activities.
Capacity building and training plans will be closely coordinated with personnel training departments
at counterparts, SAT and MINFIN, and will be coordinated and shared with other donors working
on similar areas of assistance to avoid conflicting schedules or duplication. FPRP’s gender assessment
will inform specific quotas in training participation such as in gender and other critical factors of
inclusion. Furthermore, any training provided will follow ADS 253 requirements and will be
recorded in the TraiNet online participant tracking system.
The proposed schedule of capacity building and training activities is summarized in the following
table based on the workplan activities, and will begin in April 2017. FPRP will present the proposed
schedule to counterparts’ work teams at SAT and MINFIN who will ultimately confirm their
availability.
Table 3. List of Capacity Building and Training Plan activities
CAPACITY BUILDING AND TRAINING PLAN TRAINEES
ESTIMATED
PERIOD OF
PERFORMANCE
Component 1: Domestic Resource Mobilization
Deliver training to SAT’s work teams in prioritized core areas on the
business process mapping standard BPMN 2.0
SAT personnel
(45 participants) May and July/2017
Develop and train on change management strategy as a guide to
implementing changes in business processes and procedures
SAT personnel
(10 participants) July/2017
Develop Training and Capacity building plan on par with changing
business processes and per change management strategy
SAT personnel
(20 participants) July/2017
Develop selected training modules to fill in technical gaps identified in
from technical profile gap analysis - Training of Trainers
SAT personnel
(10 participants) January/2018
Deliver training on micro-simulation modeling to SAT and MINFIN
staff - including training materials and user guide
SAT personnel
(20 participants)
October and
November/2017
Deliver training on revenue projections model- including training
materials and user guide
SAT personnel
(10 participants) January/2018
Component 2: Expenditure Management and Procurement Reform
Deliver training to MINFIN’s DNCAE work teams on the business
process mapping standard BPMN 2.0
MINFIN personnel
(14 participants) May/2017
Develop Training and Capacity Building Plan to support changes to
public procurement processes, the registry and the new
Guatecompras modules - Training of Trainers
MINFIN personnel
(20 participants) January/2018
ENVIRONMENTAL COMPLIANCE AND MONITORING
A comprehensive environmental plan considers and complies with basic requirements of Law 22
CFR 216 for new projects that break land or in any other way impact the use and/or quality of
natural resources. An Initial Environmental Examination (IEE) has been approved for the Project
funding this Task Order. The IEE covers activities expected to be implemented under this contract.
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The results of this IEE have determined that a Categorical Exclusion applies to the proposed
technical assistance activities. DAI has reviewed its proposed first year activities and believes that
none of them fall outside the scope of the approved Regulation 216 environmental documentation.
MONITORING, EVALUATION, LEARNING As per contract, FPRP has a separate Monitoring, Evaluation and Learning (MEL) Plan. The MEL
outlines the milestones, outputs, and outcomes, and indicators associate with the different project
activities, and should be considered a companion to the workplan.
REPORTING
In order to keep USAID fully informed of project technical and financial progress, the project will
submit the following deliverables during Year 15, per the terms of section F.3.2 of the FPRP Task Order.
Annual Work Plan (this document) – April 7, 2017
Monitoring, Evaluation and Learning Plan (MEL) – April 7, 2017
Weekly Updates – Weekly (ongoing)
Quarterly Progress Reports – April 30, 2017, July 30, 2017
U.S. Foreign Assistance Performance Plan and Report results – Aligned with US
fiscal year
Annual Progress Report – October 30, 2017
Gender Assessment and Integration Plan – July 24, 2017
Gender and Social Inclusion Tax Impact Analysis – October 20, 2017
Quarterly Financial Reports – April 30, 2017; July 30, 2017; October 30, 2017
Accruals – June 15, 2017; September 15, 2017; December 15, 2017; and with any request
for incremental funding
Annual Monitoring and Evaluation Reports – October 30, 2017
Success Stories – TBD with COR
Consultant Reports – Within two weeks after each consultant completes short-term
consultancy assignment
Technical Reports, Analyses, Plans, and Strategies – TBD in coordination with COR
5 Additional deliverables including the Final Report and Close-out plan will be submitted in future project years.
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ESTIMATED YEAR ONE LOE BY ACTIVITY
Budget Assumptions and Notes:
All figures, particularly specific LOE levels for each activity, are tentative and represent DAI’s
best estimates with information currently available regarding activity implementation.
LTTA LOE does not add up to 100% for COP to account for overall management
responsibilities not allocable to any specific activity, and for M&E Expert and IT Architect to
account for their start dates as well as other non-specific component related responsibilities
such as overall project administration and reporting
LOE for a Tax and Customs Modernization Expert is included in the TCN STTA column (supporting Activities 1 – 4 in Component 1)
CO
P/C
om
po
nen
t 1
Lead
Co
mp
on
en
t 2 L
ead
IT A
rch
itect
M&
E E
xp
ert
EX
PA
T
ST
TA
(T
CN
)
Sr. Sr. Sr. Med. Jr.
Activity 1: Business Process reengineering of SAT’s
prioritized core tax administration areas 15% 30% 0% 0 237 160 105 0
Activity 2: Support improvements to the Taxpayer
Registry (RTU) and Current Account10% 15% 0% 0 168 58 70 522
Activity 3: Development and implementation of
citizen perception survey, taxpayer service
satisfaction survey, and cost of compliance with a
focus on gender and social inclusion (SAT)
5% 15% 25 30 85 0 0
Activity 4: Support the implementation of exchange
of information agreement MINFIN-SAT10% 10% 5% 0 13 85 0 0
Activity 5: Strengthen tax modeling capacity and
policy analysis at MINFIN and SAT15% 5% 20 70 0 0 0
Component 1 Subtotal 55% 0% 55% 25% 45 518 388 175 522
Activity 1: Transform Guatecompras into a
transactional management system45% 10% 5% 0 70 0 592 280
Activity 2: Create a General Registry for
Government Procurement25% 10% 0 70 40 388 0
Activity 3: Develop the Public Work's
Transparency Indicators Conceptual Model10% 0 0 0 0 0
Activity 4: Improve the use of Framework
Contracts for government emergency procurements5% 10%
Activity 5: Human and Institutional Strengthening
of the General Directorate for Public Procurement10% 0 80 95 0 0
Component 2 Subtotal 5% 100% 20% 5% 0 220 135 980 280
MEL 10% 45%
Gender Assessment 15 0 0 0 0
Sub Total MEL 10% 45% 15 0 0 0 0
Total 70% 100% 75% 75% 60 738 523 1155 802
ACTIVITIES
ST
TA
(C
CN
)
LTTA –
Percentage time
STTA - Days LOE
CONTRACT NO. AID-OAA-12-00037/AID-TO-17-00002
FISCAL AND PROCUREMENT REFORM PROJECT YEAR 1 WORKPLAN 37
ANNEX A. FPRP IMPLEMENTATION MATRIX
Fiscal and Procurement Reform Project (FPRP) Activities by Result Labor
Outputs/ Deliverables
Notes/ Travel/ ODCs
Schedule/Timeline
Year 1
Relevant Indicator/Milestone
JA
N
FE
B
MA
R
AP
R
MA
Y
JU
N
JU
L
AU
G
SE
P
OC
T
NO
V
DE
C
JA
N
PY
2
Component 1: Domestic Resource Mobilization
Objectives: Raise tax revenues, reduce corruption, and enhance transparency, while encouraging inclusive economic growth
Expected Results:
Improved efficiency in tax collection and improved revenue mobilization
Reduced corruption and improved public perception of SAT
Enhanced transparency in revenue management
Activity 1.1: Business process reengineering of SAT’s prioritized core tax administration areas
1.1.1 Identify and map current business
processes in prioritized core tax
administration areas of the SAT,
using the standard Business Process
Model and Notation (BPMN 2.0)
TCN STTA; CCN
STTA; IT Architect;
Tax & Custom
Modernization Expert;
SAT’s work teams
Documented current
processes in BPMN 2.0
for prioritized core tax
areas
-July 31: First set of
prioritized areas “as is”
processes mapped
-September 30: Second set
of prioritized areas mapped
1.1.2
Conduct analysis of current business
processes, identify gaps, design and
propose “to-be” processes and
procedures
TCN STTA; CCN
STTA; IT Architect;
Tax & Custom
Modernization Expert;
SAT’s work teams
- Gap analysis
- Proposed “to be”
processes and procedures
for select prioritized
areas
- Sept 30, Nov 30, Jan 20: at
least 50% of priority areas’
processes with gap analysis
and proposed “to be”
processes
Focus group
expenses
Conduct one regional study tour to
inform “to-be” proposals in business
process reengineering based on good
international practice
SAT personnel; DAI;
USAID
Study tour for business
process reengineering of
select prioritized areas
-Observations and
recommendations document
to serve as input for “to be”
processes proposals
Study tour
expenses
Map newly approved business
processes and procedures taking into
consideration changes that optimize
resources and results
TCN STTA; CCN
STTA; IT Architect;
Tax & Custom
Modernization Expert;
SAT’s work teams
Updated new processes
mapped in BPMN 2.0 for
prioritized areas
-Newly approved processes
“mapped” in BPMN 2.0
(dependent upon approvals,
aim at 2 by end of Y1)
1.1.3 Harmonize information and
technological tools in prioritized
areas in accordance with
reengineered business processes
IT Architect; Tax &
Customs
Modernization Expert
Analysis of IT systems
inventory and proposed
conceptual model of new
IT systems
-Concept models for new IT
systems per new processes
CONTRACT NO. AID-OAA-12-00037/AID-TO-17-00002
FISCAL AND PROCUREMENT REFORM PROJECT YEAR 1 WORKPLAN 38
Fiscal and Procurement Reform Project (FPRP) Activities by Result Labor
Outputs/ Deliverables
Notes/ Travel/ ODCs
Schedule/Timeline
Year 1
Relevant Indicator/Milestone
JA
N
FE
B
MA
R
AP
R
MA
Y
JU
N
JU
L
AU
G
SE
P
OC
T
NO
V
DE
C
JA
N
PY
2
1.1.4 Develop change management
strategy as a guide to implementing
changes in business processes
TCN STTA Change Management
Strategy document
-Change management
strategy developed and
approved
1.1.5 Training SAT’s select work teams
from core areas on BPMN 2.0
standard
Subcontract SAT teams trained from
the 7 7 business macro-
process areas
-At least 40 SAT personnel
trained in BPMN 2.0 in
three rounds
Activity 1.2: Support implementation of changes to the Taxpayer Registry (RTU), Current Account and tax audit and control processes
1.2.1 Assessment of the RTU, TCA and
Tax Audit and Control, conceptual
model and implementation plan
TCN STTA; IT
Architect; Tax &
Custom Modernization
Expert; COP; SAT’s
work teams
-Conceptual Model and
implementation plan for
cleansing of the RTU and
Current Account
- Conceptual model and
implementation plan
developed and
-Work teams conformed
1.2.2 Implement improvements to the
RTU (to ensure the integrity of the
taxpayer registry)
TCN STTA; IT
Architect; Tax &
Custom Modernization
Expert; COP; SAT’s
work teams
-# of cleaned taxpayer
records out of the 6.7
million in the registry
without tax obligations
-50% cleaning of the defined
sample from RTU
1.2.3 Implement improvements to TCA
(to ensure consistent, clean, and up-
to-date taxpayer records)
TCN STTA; IT
Architect; Tax &
Custom Modernization
Expert; COP; SAT’s
work teams
-Implement conditions for
the cleaning process,
incorporate missing data
that causes the system to
be outdated
-50% cleaning of the defined
sample from Current
Account
1.2.4 Implement changes to Tax Audit and
Control process (in close
coordination with SAT and other
donors)
TCN STTA; IT
Architect; Tax &
Custom Modernization
Expert; COP; SAT’s
work teams
-TBD based on analysis of
detailed analysis of
processes and
coordination with other
donors working in this
same area
-Percent increase in the
number of effective
taxpayers
1.2.5
Assess required IT updates to
accompany improvements to the
RTU, TCA and select Tax Audit and
Control areas
TCN STTA; IT
Architect LTTA; Tax &
Customs
Modernization Expert
IT conceptual model by
process (RTU, TCA, Tax
Control)
-IT Conceptual Model and
implementation plan
approved
-Work teams identified
Design of IT systems following
conceptual model
IT Architect LTTA; Tax
& Customs
Modernization; CCN
STTA
Use cases developed (#
TBD)
-# of use cases developed
CONTRACT NO. AID-OAA-12-00037/AID-TO-17-00002
FISCAL AND PROCUREMENT REFORM PROJECT YEAR 1 WORKPLAN 39
Fiscal and Procurement Reform Project (FPRP) Activities by Result Labor
Outputs/ Deliverables
Notes/ Travel/ ODCs
Schedule/Timeline
Year 1
Relevant Indicator/Milestone
JA
N
FE
B
MA
R
AP
R
MA
Y
JU
N
JU
L
AU
G
SE
P
OC
T
NO
V
DE
C
JA
N
PY
2
Software development of IT systems
based on use cases
IT Architect LTTA;
CCN STTA
Modules developed (#
TBD)
-# of modules developed
and implemented
1.2.6
Training and Capacity building plan
on par with changing business
processes and per change
management strategy
TCN STTA; SAT’s
Office of Personnel
Training
Training and capacity
building plan per process
-Training and Capacity
building plan approved
-ToT identified
Gap analysis of technical profiles for
each process and curricula
development
TCN STTA; CCN
STTA; SAT’s Office of
Personnel Training
-Gap analysis document
-New curricula document
-Updated technical profiles
-Curriculum framework
Development of select training
modules to fill in technical gaps
identified in SAT personnel
TCN STTA; Tax &
Customs
Modernization Expert;
SAT’s Core areas and
Personnel Training
Training module
documents and
presentations
- # of training modules
developed
Activity 1.3: Development and implementation of citizen perception survey, taxpayer service satisfaction survey, and cost of compliance with a focus on gender and social
inclusion (SAT)
1.3.1
Support the design and
implementation of citizen public
perception survey
TCN STTA; M&E
Expert; Subcontract
-Conceptual model for
citizen perception survey
-Survey instrument
designed
-Concept model approved
-Sampling methodology
defined
-Questionnaire designed
Execute the survey throughout the
country
Subcontract -Execution of the survey -# of complete survey
responses received
Data processing and analysis of
results
Subcontract - Analysis of results - Citizen’s level of trust on
the SAT
-% increase after baseline
year
Communications strategy of results
and follow-up
Subcontract; M&E
Expert
-Communications strategy
document
- # of follow up items
1.3.2 Review and improve current
taxpayer service satisfaction surveys
CCN STTA; M&E
LTTA
-Recommendations on
improving survey design
and sampling
-Revised survey
instrument
- # of recommendations
approved for
implementation
Support implementation of revised
taxpayer service satisfaction survey
CCN STTA; M&E
Expert
-Analysis of results
document
- Level of taxpayer
satisfaction
CONTRACT NO. AID-OAA-12-00037/AID-TO-17-00002
FISCAL AND PROCUREMENT REFORM PROJECT YEAR 1 WORKPLAN 40
Fiscal and Procurement Reform Project (FPRP) Activities by Result Labor
Outputs/ Deliverables
Notes/ Travel/ ODCs
Schedule/Timeline
Year 1
Relevant Indicator/Milestone
JA
N
FE
B
MA
R
AP
R
MA
Y
JU
N
JU
L
AU
G
SE
P
OC
T
NO
V
DE
C
JA
N
PY
2
including data processing and analysis
of results
1.3.3 Undertake Gender and Social
Inclusion Tax Impact analysis with a
focus on identifying and measuring
the cost of tax compliance for
women and marginalized
communities
TCN STTA; CCN
STTA; Subcontract for
implementation of cost
of compliance survey
- Gender and Social
Inclusion Tax Impact
Analysis
- Cost of Compliance
Survey (Aug 30)
- Focus groups (4)
-Gender and Social Inclusion
Strategy developed (Oct.
30)
- Taxpayer cost of
compliance level (in # of
hours, in Quetzales per
year)
-Focus Groups
-Travel outside
Guatemala City
Activity 1.4: Implementation of the exchange of information agreement SAT-MINFIN
1.4.1 Define conceptual model and
identification of criteria for exchange
of information
CCN STTA; COP; IT
Architect; Tax &
Customs
Modernization Expert
-Conceptual model
document
-Technical criteria defined
- Conceptual model and
criteria approved
1.4.2 Design technical requirements for
the exchange of information
MINFIN-SAT
IT Architect; Tax &
Customs
Modernization Expert;
CCN STTA
-Use case development
for data exchange
interface
- # of use cases developed
1.4.3 Support software development for
supporting the exchange of
information
IT Architect; CCN
STTA
-Software development - # of modules, interfaces
implemented
Activity 1.5: Strengthen tax modeling capacity and policy analysis at MINFIN and SAT
1.5.1 Develop micro-simulation model to
estimate revenue yield for current
tax law and proposed changes to
current law
TCN STTA; COP
Construction of the data set based
on tax return data and macro-
variables
TCN STTA; COP -Cleaned data set Sept 30
Developing the tax calculator for
computing taxes, by type of tax
TCN STTA; COP -Micro-simulation model
(Excel-based)
Nov 30
Deliver training on micro-simulation
modeling to SAT and MINFIN staff
TCN STTA; COP -User Guide, training
documents and materials
Dec 20
CONTRACT NO. AID-OAA-12-00037/AID-TO-17-00002
FISCAL AND PROCUREMENT REFORM PROJECT YEAR 1 WORKPLAN 41
Fiscal and Procurement Reform Project (FPRP) Activities by Result Labor
Outputs/ Deliverables
Notes/ Travel/ ODCs
Schedule/Timeline
Year 1
Relevant Indicator/Milestone
JA
N
FE
B
MA
R
AP
R
MA
Y
JU
N
JU
L
AU
G
SE
P
OC
T
NO
V
DE
C
JA
N
PY
2
Develop policy briefs using the model COP -Policy Briefs (every
quarter after model
established)
Dec 20
1.5.2 Develop tax revenue projections
model to serve as input into the
medium term fiscal framework
TCN STTA; COP Design approach and
methodology
10 MS Office Software
license
Purchase MS
Office software
license
Construction of revenue projections
data set
TCN STTA; COP -Quarterly and annual
dataset
Nov 30
Develop revenue projections model
and user guide
TCN STTA; COP -Revenue projections
model (excel file)
-User guide
Dec 30
Presentation & analysis report on
revenue forecasts and results
TCN STTA; COP -Analysis report Jan 20
Deliver training on model including
training materials
TCN STTA; COP -Training documents and
materials
Jan 20
1.5.3 Undertake select tax studies focused
on tax base broadening and revenue
mobilization impact
TCN STTA; COP -One per year Jan 20
Component 2: Expenditure Management and Procurement Reform
Objective: Improve expenditure management and further procurement reform efforts of the GOG
Expected Results:
Enhanced competitiveness in public procurement
Improved transparency of procurement processes
Strengthened controls and safeguards in the procurement process
Business sector confidence improved in the public tendering process
Activity 2.1: Transform Guatecompras into a transactional management system
2.1.1 Review public procurement
normative and legal framework,
process gap analysis and support for
development of procedures manual
based on new Procurement Law
TCN STTA;
Component 2 lead;
MINFIN’s DNCAE
Gap analysis report on
processes based on new
legislation
September 30
2.1.2 Business process redefined based on
gap analysis and recommendations
TCN STTA; CCN
STTA; Component 2
Redefined Processes,
mapped out in BPMN 2.0
June 30: Processes mapped
for PAC formulation
CONTRACT NO. AID-OAA-12-00037/AID-TO-17-00002
FISCAL AND PROCUREMENT REFORM PROJECT YEAR 1 WORKPLAN 42
Fiscal and Procurement Reform Project (FPRP) Activities by Result Labor
Outputs/ Deliverables
Notes/ Travel/ ODCs
Schedule/Timeline
Year 1
Relevant Indicator/Milestone
JA
N
FE
B
MA
R
AP
R
MA
Y
JU
N
JU
L
AU
G
SE
P
OC
T
NO
V
DE
C
JA
N
PY
2
lead; MINFIN’s
DNCAE
Nov 30: Processes mapped
for remaining modules
2.1.3 Develop Guatecompras
implementation roadmap
TCN STTA;
Component 2 lead;
MINFIN’s DNCAE
Roadmap document Roadmap document
completed
2.1.4 Design conceptual model for the new
transactional Guatecompras,
including creation of new Catalog
UN-Budget
TCN STTA; CCN
STTA; Component 2
lead; MINFIN’s
DNCAE
-Guatecompras
Conceptual Model
-Products and Services
Catalog UN-Budget
Conceptual model
completed
Products and
Services UN
Catalog license
2.1.5 Validate and approve conceptual
Model of Guatecompras
TCN STTA;
Component 2 lead;
MINFIN’s DNCAE
Approval Document Approval
2.1.6 Strategy for IT platform integration:
Guatecompras and Integrated
Financial Management System
TCN STTA;
Component 2 lead; IT
Architect; MINFIN’s
DTI & DTP
Strategy document Strategy approved
2.1.7 Design Use Cases for PAC
Formulation Module of
Guatecompras
TCN STTA;
Component 2 lead; IT
Architect; CCN STTA;
MINFIN’s DTI
Use cases design
document
PAC formulation module
use cases designed
2.1.8 Software development PAC
Formulation module in
Guatecompras
IT Architect; CCN
STTA
Guatecompras
transactional module
PAC Formulation module
developed
Activity 2.2: Create the National Registry of Government Providers
2.2.1 Design conceptual model for the
General Registry for Government
Procurement
TCN STTA;
Component 2 lead;
MINFIN’s DNCAE
General Registry for
Government
Procurement Conceptual
Model
Conceptual model
completed
2.2.2 Develop business processes for
Registry
TCN STTA; CCN
STTA; Component 2
lead; MINFIN’s
DNCAE & DIPLANDI
Mapped processes in
BPMN 2.0 standard
Sep 30: Mapped processes
for Registry
CONTRACT NO. AID-OAA-12-00037/AID-TO-17-00002
FISCAL AND PROCUREMENT REFORM PROJECT YEAR 1 WORKPLAN 43
Fiscal and Procurement Reform Project (FPRP) Activities by Result Labor
Outputs/ Deliverables
Notes/ Travel/ ODCs
Schedule/Timeline
Year 1
Relevant Indicator/Milestone
JA
N
FE
B
MA
R
AP
R
MA
Y
JU
N
JU
L
AU
G
SE
P
OC
T
NO
V
DE
C
JA
N
PY
2
2.2.3 Validate and approve conceptual
Model of General Registry for
Government Procurement
TCN STTA;
Component 2 lead;
MINFIN’s DNCAE
Approval Document Approval
2.2.4 Design Use Cases for the General
Registry for Government
Procurement Module
TCN STTA;
Component 2 lead; IT
Architect LTTA;
MINFIN Registry
Directorate
Use cases design
document
Aug 31: First draft of use
cases completed; Oct 31:
Final draft of use cases
completed
2.2.5 Develop job profiles
recommendations for the new
Directorate of the General Registry
for Government Procurement
CCN STTA; TCN
STTA; Component 2
lead; MINFIN Registry
Directorate
Recommendations report # of technical profiles
identified and developed
2.2.6 Software development for the
General Registry for Government
Procurement module
IT Architect; CCN
STTA (Software
developers); MINFIN’s
DTI team
Provider’s Registry
module
# of modules developed
2.2.7 Upload and integrate other
providers’ registries into the new
Registry, including MIPYMES
IT Architect; MINFIN’s
DTI
External registries’
database integrated into
the Registry
# of registries integrated
Activity 2.3: Develop the Public Works’ transparency indicators conceptual model
2.3.1 Design conceptual model for
transparency indicators in public
works
TCN STTA;
Component 2 lead; IT
Architect
Conceptual model
document
Jan 19
Activity 2.4: Improve the use of Framework Contracts for government emergency procurements
2.4.1 Study tour to Peru to envision the
framework contract modality related
to emergency procurements
MINFIN (3); DAI (2);
USAID (1)
Study tour report July 3 Study tour
expenses
2.4.2 Develop the first draft of emergency
purchase list under framework
contract modality to respond
Guatemalan national emergencies
Component 2 lead;
MINFIN’s DNCAE
List of emergency
purchases
Oct 31
2.4.3 Develop implementation roadmap
for emergency purchase framework
contract
Component 2 lead;
MINFIN’s DNCAE
Implementation Roadmap Dec 20
CONTRACT NO. AID-OAA-12-00037/AID-TO-17-00002
FISCAL AND PROCUREMENT REFORM PROJECT YEAR 1 WORKPLAN 44
Fiscal and Procurement Reform Project (FPRP) Activities by Result Labor
Outputs/ Deliverables
Notes/ Travel/ ODCs
Schedule/Timeline
Year 1
Relevant Indicator/Milestone
JA
N
FE
B
MA
R
AP
R
MA
Y
JU
N
JU
L
AU
G
SE
P
OC
T
NO
V
DE
C
JA
N
PY
2
Activity 2.5: Conduct human and institutional strengthening of the General Directorate for Public Procurement
2.5.1 BPMN 2.0 Training delivery Subcontract May
2.5.2 Change Management Strategy
development and implementation
TCN STTA;
Component 2 lead
Recommendations for
change management
strategy and competency
gaps
Oct 31: Change
Management Strategy report
2.5.3 Gap analysis of the current
organizational structure DNCAE
versus the new proposed DGAE
structure
CCN STTA;
Component 2 lead
Gap analysis document Dec 30
2.5.4 Recommendations for job profiles for
new DGAE
CCN STTA;
Component 2 lead
Recommendations on
updated job profiles
Jan 20
2.5.5 Training and Capacity Building Plan TCN STTA Plan document Jan 20
2.5.6 Define and implement citizen
perception survey on government
procurement
TCN STTA;
Subcontract; M&E
LTTA
-Concept model,
Questionnaire and
Results report
July 31
Reporting and Contract Deliverables
3.1 Annual Work Plan Year 1 Work Plan
Year 2 Work Plan
April 7
Dec 8
3.2 Monitoring, Evaluation and Learning
(MEL)
MEL Plan April 7
3.3 Quarterly Progress Report April 30
July 30
Oct 30
3.4 Quarterly Financial Report April 30
July 30
Oct 30
3.5 Gender Assessment and Integration Plan
TCN STTA; CCN STTA; M&E Expert;
COP
July 24
3.6 Gender and Social Inclusion Tax
Impact Analysis
See above in
component 1
Analysis Report Oct 20
CONTRACT NO. AID-OAA-12-00037/AID-TO-17-00002
FISCAL AND PROCUREMENT REFORM PROJECT YEAR 1 WORKPLAN 45
ANNEX B. SELECT DONOR ACTIVITIES AND AREAS FOR COORDINATION AND
COLLABORATION
Donor/Project Area of Support Illustrative Coordination and Collaboration
National Action Plan for
Open Government
2016-2018 -
Commitment 20
Advancing tax
transparency;
modernizing the
taxpayer registry; and
efforts to comply with
international taxation
standards
FPRP will complement actions already underway through the National Action Plan for Open Government by
contributing to the modernization of the taxpayer registry (RTU), improving revenue management through
development of a revenue projections model, and complying with international taxation standards by
supporting the business process reengineering in core tax administration areas according to international best
practice and standards. FPRP will coordinate efforts with the Open Government Partnership team to find
synergies to promote implementation of FPRP supported activities.
Millennium Challenge
Corporation and U.S.
Treasury Office of
Technical Assistance/
Security and Justice
Sector Reform Program
Customs and non-
customs support
MCC is supporting short-term technical assistance by OTA on customs valuations, voluntary compliance,
anticorruption, and taxpayer audit capacity building. Assistance will target approximately 14 areas of capacity
within the SAT, including account management, compliance, internal controls, and customs, with the goal of
reducing corruption. FPRP will collaborate with MCC/OTA efforts during the business process reengineering
of core tax areas where OTA supports and will explore windows of opportunity to further enhance current
efforts in fiscal intelligence, data mining and tax controls.
German Technical
Cooperation Agency
(GIZ) - Good Financial
Governance (PROFI)
Revenue administration;
tax paying culture;
subnational taxation
Through an embedded full-time advisor, GIZ is supporting SAT and MINFIN to apply existing tax laws
consistently to strengthen revenue collection. It has a public education component to encourage a tax paying
culture. It is also piloting an initiative to improve the abilities of selected municipalities to collect property tax.
FPRP will coordinate efforts with GIZ to promote improved taxpayer compliance culture in the development
of a citizen perception survey on the SAT.
IMF and CAPTAC
Centro Regional de
Asistencia Técnica para
Centroamérica, Panamá
y la República
Dominicana
Multiple; tax control and
VAT evasion; customs;
MTFF
CAPTAC supports the SAT to improve revenue collection and along with the IMF supports the development
and implementation of the SAT’s Plan Emergente para el Control del IVA (PEMCIVA), which details 89 actions
needed to improve VAT control. Also provides technical assistance for institutional development initiatives in
customs; modernization of non-tax revenue; and expenditure frameworks and medium-term fiscal
frameworks. To coordinate with these activities, FPRP will coordinate on the status of support on tax control
area—PEMCIVA—to complement actions to date and look for opportunities to further advance tackling tax
evasion not just through VAT controls but also tackling informality. FPRP will further coordinate efforts
related to customs support to prioritize business process reengineering of the customs area; and coordinate
the development of a revenue projections model within the MTFF conceptual model.
CONTRACT NO. AID-OAA-12-00037/AID-TO-17-00002
FISCAL AND PROCUREMENT REFORM PROJECT YEAR 1 WORKPLAN 46
Donor/Project Area of Support Illustrative Coordination and Collaboration
EU/Technical Assistance
for Customs Capacity
Building and Risk
Management
Customs; Data mining
and tax fraud
investigation
The EU is supporting initiatives in data mining to identify customs fraud and other opportunities to increase
DRM. FPRP will explore windows of opportunities to support the internal revenue tax controls and would
require performing data mining activities, including cross-referencing customs data and fraud cases that may
also affect internal revenue evasion.
World
Bank/Transparency and
Efficiency in Tax
Administration Project
(forthcoming)
SAT’s governance; tax
collection function; tax
intelligence and
enforcement; software
and hardware updates
The World Bank loan project will promote increasing levels of compliance with tax and customs obligations,
supporting improvements in SAT’s governance, upgrading the ICT platform, strengthening core processes of
tax collection and control functions in both internal and customs revenue, and strengthening tax enforcement,
control, legal services, and appeals procedures. FPRP will closely coordinate with the WB project to avoid
duplicity, and will find value add to WB’s activities to enhance FPRP’s activities, and vice versa. Particularly,
business process reengineering in tax collection and technical assistance in tax control areas will require close
coordination and collaboration.
Inter-American
Development Bank
(IDB) support on tax
administration
modernization
(forthcoming)
TBD; expected to focus
on improving
information and
technology
The IDB loan will support tax administration modernization core areas with emphasis on modernizing
information, communication and technology platforms. FPRP will close coordinate with IDB assistance in core
tax administration areas to redefine business process but also to harmonize information and technology
platforms according to needs of the core business areas.
National Action Plan for
Open Government
2016-2018 -
Commitment 19
Advancing the use of
framework contracting
(contrato abierto)
FPRP will complement actions by contributing to updates to Guatecompras, implementing open data
standards, and promoting the use of framework contracting for emergency government procurements. The
creation of the registry of providers and training on its use will further support achievement of targets
according to the deadlines laid out in the new National Procurement Law. Furthermore, FPRP will seek
windows of opportunity during the formulation of the next National Action Plan to incorporate specific
actions that can facilitate the implementation of specific initiatives, such as the PAC formulation module by
central government executive agencies.
FUNDESA – Fundación
para el Desarrollo de
Guatemala: Proyecto
MSPAS-MINFIN-
FUNDESA
Public procurement;
focus on health sector
The project seeks to optimize public procurement processes in the health sector to improve competitiveness
and availability of medicines, medical-surgical equipment, and non-personnel services in selected hospitals,
strengthening value-chain supplies working in collaboration with the Ministry of Health and Social Assistance
(MSPAS). FPRP will coordinate efforts to potentially select the MSPAS as a pilot ministry for implementing
new processes and procedures, and for implementing the PAC formulation module under the new UN-
budget Catalog of supplies.
Inter-American
Development Bank
(IDB)
E-procurement IDB developed initial conceptual model for modernizing Guatecompras. This initial conceptual model has
served as input for FPRP’s initial scoping and developing the roadmap for assistance in Guatecompras. The
IDB may continue supporting the MINFIN on public procurement, at which time, the FPRP team will closely
coordinate activities as to avoid duplication.
CONTRACT NO. AID-OAA-12-00037/AID-TO-17-00002
FISCAL AND PROCUREMENT REFORM PROJECT YEAR 1 WORKPLAN 47
Donor/Project Area of Support Illustrative Coordination and Collaboration
USAID/Nexos Locales
(DAI-implemented)
Subnational PFM; rural
and marginalized
communities
Nexos Locales is providing assistance and training to strengthen PFM and public procurement at the
subnational level. FPRP will advise the Nexos team on relevant changes to national PFM systems that affect
the subnational level, and provide guidance on how to address these through their trainings. Furthermore, the
Nexos team can provide feedback on major challenges facing municipalities in preparing their annual
procurement plans to inform business processes improvements. FPRP may further coordinate with the Nexos
team on activities related to gender and social inclusion based on knowledge of challenges of indigenous and
rural communities in the Western Highlands.
USAID/Improved Urban
Municipal Governance
(Tetra Tech-
implemented)
Subnational PFM; urban
communities
Working with the GOG and local civic groups, this project will support the strengthening of public financial
systems and the development of service delivery plans for local governments to promote improved
governance practices in the region. FPRP will find opportunities to inform and promote process
improvements in public procurement in urban municipalities. FPRP will also coordinate activities related to
gender and social inclusion affecting populations in urban communities.
USAID/Civil Society for
Accountable
Governance Project
Transparency/ anti-
corruption
The USAID/Civil Society for Accountable Governance Project is implementing citizen- and CSO-led efforts to
address accountable governance and corruption issues, including convening a network of CSOs to monitor
and report on the GOG’s progress under its current Open Government Plan of Action, which includes a
significant tax transparency objective. To support these activities, FPRP will provide support to MINFIN and
SAT officials to interact with civil society counterparts to provide information on MINFIN and SAT’s progress
in implementing tax and public procurement transparency reforms.
USAID/Health and
Education Plus Project
Health Sector Reform,
Quality in Education
policies support
The USAID/HP+ Project, named the Health and Education PLUS (HEP+) project, supports the government’s
targeted health sector reform efforts while focusing on civil society and governance and central level-planning
and policies in education, nutrition, and health sectors. One of the areas in which will operate is in providing
technical assistance in health financing, governance, and health management information systems. To support
these activities, FPRP will coordinate activities with HEP+ to support health financing policies.
CONTRACT NO. AID-OAA-12-00037/AID-TO-17-00002
FISCAL AND PROCUREMENT REFORM PROJECT YEAR 1 WORKPLAN 48
ANNEX C. TECHNICAL STTA POOL
Area of
Expertise
Purpose Required Experience Proposed
LOE
Year 1
Tax and Customs
Modernization
Expert
Lead business process reengineering of SAT’s
prioritized core tax administration areas, including
identifying, analyzing, mapping, and harmonizing current
business processes in prioritized tax administration
areas.
Lead implementation of changes to the Taxpayer
Registry (RTU), Current Account and tax audit and
control processes, including assessing, implementing,
updating, and training staff on changes to the RTU,
TCA, and Tax Audit and Control areas.
Facilitate the exchange of information agreement
between SAT-MINFIN, including defining the
conceptual model and exchange information criteria,
and developing the technical requirements.
At least 15 years of experience in developing, implementing, and
managing tax and customs reform programs
Experience with business process reengineering for tax and
customs areas
Experience supporting tax reforms including IT systems and
software for tax administration
Extensive experience working with relevant government
ministries in on tax and customs modernization.
Previous experience with providing technical assistance to fiscal
reform projects through donors, USAID preferred
Native Spanish fluency, and advanced written and oral English
preferred
180 days
Taxpayer Registry
and Current
Account Advisor
Develop conceptual model and implementation plan for
changes to the RTU, Taxpayer Current Account and
Tax Control Processes
Identify data and information needs and integrate
required IT updates to accompany improvements to
the RTU, TCA and select Tax Aurist and Control areas
Supervise the implementation of improvements to the
RTU and Taxpayer Current Account
At least 15 years of experience in reforms related to the
improvement of tax administration, particularly in the areas of
taxpayer registry, current account, and tax audit and control
Previous experience with providing technical assistance to fiscal
reform projects through donors, USAID preferred
Experience supporting tax administration modernization in the
region, particularly the tax registration, tax collection, and current
account management
TBD
Tax Audit and
Control Conduct analysis of current SAT business processes,
identify gaps, design and propose “to be” processes and
procedures
Provide recommendations on key areas of tax audit
and control following international best practices
Support the cleansing of the taxpayer current account
At least 20 years of experience in reforms related to the
improvement of tax audit and collection
Previous experience with providing technical assistance to fiscal
reform projects through donors, USAID preferred
Experience supporting tax administration modernization in the
region, particularly the tax audit and control areas, particularly
supporting domestic resource mobilization initiatives
50 days
CONTRACT NO. AID-OAA-12-00037/AID-TO-17-00002
FISCAL AND PROCUREMENT REFORM PROJECT YEAR 1 WORKPLAN 49
Area of
Expertise
Purpose Required Experience Proposed
LOE
Year 1
Taxpayer Service Contribute to the scoping of the SAT’s core functions
related to taxpayer service
Make an inventory of the SAT’s current processes and
procedures and to analyze, identify gaps and make
recommendations for their redefinition, elimination,
and/or improvement
Previous experience with providing technical assistance to fiscal
reform projects through donors, USAID preferred
Experience supporting tax administration modernization in the
region, particularly the tax audit and collection areas
At least 10 years of relevant professional experience
50 days
Customs Advisor Contribute to the scoping of the SAT’s core functions
related to customs
Develop recommendations for improvements to core
functions and processes in the customs area
Support the mapping, analysis and redesign of select
customs area processes
Previous experience with providing technical assistance to fiscal
reform projects through donors, USAID preferred
Experience supporting customs modernization in the region
At least 10 years of relevant professional experience
TBD
Public
Procurement and
e-Procurement
Complete an initial scoping of the MINFIN’s public
procurement function and e-procurement
(Guatecompras)
Provide a map of current processes and procedures,
identifying those that require adjustment and making
recommendations on a phased implementation plan
including the required changes to the Guatecompras
platform
Support the design and implementation of
Guatecompras transformation into a transactional
system
At least 10 years of experience in budget and/or public financial
management reforms
At least 5 years of experience in public procurement and e-
procurement processes and systems
Experience supporting the integration of procurement and
contracting systems with the public financial management systems
Experience in supporting public finance reform projects through
donors and/or other international cooperation organizations,
preferred
Experience in public finance reforms in the Latin America and
Caribbean region, preferred
122 days
Gender and
Social Inclusion Undertake Gender and Social Inclusion Tax Impact
analysis with a focus on identifying and measuring the
cost of tax compliance for women and marginalized
communities
Conduct Gender Assessment and Integration Plan
At least 15 years of experience with Gender and Social Inclusion,
including areas such as at-risk youth, social crime prevention,
democracy, human rights, civil society and vulnerable populations
Experience in supporting international donor funded projects,
preferred
Experience in the Latin America and Caribbean region, preferred
TBD
Core business
processes
mapping expert
Support the mapping of business processes in
prioritized core tax administration areas of the SAT as
well as those related to public procurement, using the
At least 5 years of experience in core business process mapping
with the BPMN 2.0 standard
TBD
CONTRACT NO. AID-OAA-12-00037/AID-TO-17-00002
FISCAL AND PROCUREMENT REFORM PROJECT YEAR 1 WORKPLAN 50
Area of
Expertise
Purpose Required Experience Proposed
LOE
Year 1
standard Business Process Model and Notation (BPMN
2.0) Experience in supporting public finance reform projects through
donors and/or other international cooperation organizations,
preferred
Change
Management and
Capacity Building
and Planning
Develop change management strategy as a guide to
implementing changes in business processes and
procedures
At least 20 years of relevant change management and capacity
building experience
Experience in supporting public finance reform projects through
donors and/or other international cooperation organizations,
preferred
Experience in public finance reforms in the Latin America and
Caribbean region, preferred
TBD