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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. e 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.

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Page 1: FISCAL AND PROCUREMENT REFORM PROJECT …pdf.usaid.gov/pdf_docs/PA00MZ6Q.pdf · Key Project Information ... Integrated Financial Management Information System ... This report presents

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.

e

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.

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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

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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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CONTRACT NO. AID-OAA-12-00037/AID-TO-17-00002

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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CONTRACT NO. AID-OAA-12-00037/AID-TO-17-00002

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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CONTRACT NO. AID-OAA-12-00037/AID-TO-17-00002

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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CONTRACT NO. AID-OAA-12-00037/AID-TO-17-00002

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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FISCAL AND PROCUREMENT REFORM PROJECT YEAR 1 WORKPLAN 12

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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FISCAL AND PROCUREMENT REFORM PROJECT YEAR 1 WORKPLAN 13

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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CONTRACT NO. AID-OAA-12-00037/AID-TO-17-00002

FISCAL AND PROCUREMENT REFORM PROJECT YEAR 1 WORKPLAN 34

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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CONTRACT NO. AID-OAA-12-00037/AID-TO-17-00002

FISCAL AND PROCUREMENT REFORM PROJECT YEAR 1 WORKPLAN 35

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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CONTRACT NO. AID-OAA-12-00037/AID-TO-17-00002

FISCAL AND PROCUREMENT REFORM PROJECT YEAR 1 WORKPLAN 36

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

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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

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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

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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

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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

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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

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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

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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

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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

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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.

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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.

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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.

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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

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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

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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