sipu annual report 2012

ANNUAL REPORT2012

SIPU staff 2012

annual report 2012 • SIPU International AB

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Contents

Two Decades of Public Service Development 2

The SIPU Story 3

Our Business 4

Our Corporate Family 5

Where We Work 6

SIPU Projects 2012 – Ongoing and Finalised 8

Bringing the World to Sweden 10

Strengthening the Voice of Society 12

New Challenges for Urban Planners 14

Building Effective Institutions & Governments 15

Finding out What Works and Why 16

Stewarding Public Resources for Public Good 18

Professional Training for Swedish Civil Servants 20

Managing Sustainability 23

Gender Equality – a Human Right 23

Supporting Inclusive Economic Growth 24

Annual Report for the Period 1 January – 31 December 2012 25

SIPU International 1992 – 2012 36

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12

16

14

20

24

36

editorial notes

manuscript SIPU International AB

graphic design Viera Larsson, Ordbildarna AB

cover and staff photos Nicholas John Stevens

printed at Temo Mailer AB

contact

SIPU International ABpostal address Box 45113, SE-104 30 Stockholm, Sweden

visiting address Dalagatan 7

website www.sipuinternational.se • e-mail [email protected]

phone +46 (0)8 698 06 00 • fax +46 (0)8 698 06 10


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We are now reporting on 2012, the 20th year in the life of SIPU International. We are proud of our history and we dedicate a special section in this

report to our anniversary in which we try to depict the growth and development of SIPU into what it is today. It is a story about 5 civil servants who became entrepreneurs, overnight and not fully by their own will. By delivering quality services, upholding an ambitious level of corporate growth and applying a sensible recruit-ment policy, they made the company grow and develop to what it is today. Faint traces of public administration culture can still be spotted, but on the whole the transformation to a contempo-rary consultancy company is accomplished. What about the next 20 years? SIPU will continue to develop its offer to the public sector, be it in Sweden, Europe or other parts of the world. We will become smarter, sharper and more versatile in our ability to assist our clients, who will be found in a wider spectrum than today. In Sweden, SIPU is mostly known for our professional training of civil servants on central and local levels. We are constantly improving our market position and our offers. We are now the leading Swedish provider of training in such areas as eu-trainings, legal aspects of civil service and public procurement. In the last few years we have strengthened our position on the Swedish market by acquiring framework agreements and assignments for an increasing number of Swed-ish public agencies. Internationally, we will continue to support reform and facilitate change in the public sector as a contractor to the main donors in develop-ment cooperation. But we will also take on new roles. For example, in 2012 we became the only Swedish company and one of few international organisations, accredited to conduct validations for the Extractive Industries Transparency Initia-tive (eiti).

Two Decades of Public Service Development

We are since 2007 part of a Finnish-owned international corporate group, FCG. This brings opportunities to SIPU that we have only just begun to take full advantage of. The next 20 years will witness an increasing number of joint ventures and systematic cooperation between the companies of the group. Together we will develop new products and services and venture into new markets. The most recent effort is the staff surveys SIPU is now launching for Swedish municipalities. It is a service which is exclusively designed for local government and meant to facilitate continuous work with the psycho-social work environment as well as sustainability issues in the workplace. By building up a database with a large majority of Swedish municipali-ties, the opportunities for benchmarking and analysis will be endless. The service can easily be expanded to Finland and other Nordic countries which will also enrich its usefulness. After 20 years, SIPU International is more dy-namic than perhaps ever before. This is accentu-ated by the fact that we are also in the middle of a generation shift, and all the new staff are bringing new ideas and experience to the table. Small wonder that I am looking forward to the next two decades.

Anders OlinManaging Director,SIPU International AB

photo Nicholas John Stevens


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The SIPU Story

SIPU InternAtIonAl is Scandinavia’s leading consultancy and training organisation specialis-ing in public sector development. Our clients include national, regional and local governments, parliaments as well as private companies and non-governmental organizations. Our assignments and projects are commissioned by donor organisations such as Sida, the European Union, the World Bank, and others.

As development consultants we allow for the clients’ experiences, competencies and values to determine our role. Depending on our clients’ needs and priorities, we can be advisors, change managers, hands-on experts, who »get things done«. We adjust our assistance to our clients’ own path to improve knowledge, skills and capacity. Having expertise in-house for our core areas is our warranty for quality.

Our training events take place in Sweden with Swedes, or abroad with multinational groups. We are known for our innovative and dynamic approach to training. We recognize that every participant has his or her own knowledge and experience. By working with different participa-tory techniques for problem solving and training we tap the diversity of personal perspectives and resources to enhance learning and development.

SIPU International employs 40 staff in head-quarters and another 50 in project offices abroad. We also have an extensive international network of experienced and senior short-term experts and partner organisations in all areas of public sector development and related fields. Currently operating in more than 20 countries, SIPU has lent its expertise to over 90 countries across the globe.

Our History

1979 SIPU is established as the central public agency

for training of civil servants

1981 SIPU’s first step on the international arena is taken

in Sub-Saharan Africa: Botswana

1990 SIPU starts working in Eastern Europe in a series

of projects addressing the transition process in the

Baltic countries and Russia

1991 A cooperation between SIPU and The Mongolian

Institute of Administration is established as SIPU’s

first project in Asia

1992 The public agency SIPU is privatised and

SIPU International AB is established

2001 The first project in Latin America is started

in El Salvador

2007 SIPU International AB joins FCG Group

2010 SIPU International AB starts providing professional

training in Sweden

2012 SIPU proudly looks back at 20 years as

a private company


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Our Business

WhAt We do

SIPU International has a wide range of services which are organised into business areas. In 2012, Civil Society Development has dominated in terms of turnover, followed by Good Governance and PAR and Public Finance Management. Mar-ket Development and Evaluations both represent a fair share. Up and coming in 2013 and onwards will be Environmental Management and Urban Development.

Swedish Professional Training is an important and growing area which we will now split into subdivisions as business areas. SIPU will from now on offer both training and consulting in Public Procurement, eu Project Cycle Manage-ment, Planning and Technical Management and Administration & Law.

Where We Work

The major trend in our geographic presence over the last few years is a concentration to Europe. Our increased operations in Sweden and the neighbourhood programmes outside the eu are behind this development.

Our presence in Africa decreased slightly in 2012 but we see East and Southern Africa, as well as the mena-region, as key growth areas for SIPU in the coming years.

Who We Work for

In our international assignments we are often contracted by an international donor agency to work with a beneficiary organisation in a given country. Often, the contracting client and beneficiary are the same. The chart illustrates the distribution of clients. The beneficiaries for each assignment are listed on page 8 and 9.

57% of our business is with Sida, our oldest and largest client. This share has increased from last year mainly due to the large cso assessment assign-ment. Also increased from 2012 both in relative and absolute terms are the Swedish public and private organisations. This is in line with SIPU’s strategy for growing both in Sweden and abroad.

Europe EU 11%

Global Programmes 21%

Near & Middle East 2%

Asia & Pacific 6%

Latin & Central America 2%

Africa 9%

Europe non–EU 49%

Market Development

11%

Good Governance & Public Administration

Reform 15%

Gender Equality 3%

Natural Resources & Environmental Management 6%

Local Government & Urban Development 1%

Civil Society Development 26%

Swedish Professional Training 10%

Evaluation & Project Cycle Management

12%

Public Financial Management

16%

Swedish Public & Private Organisations 11%

Other 7%

Sida 57%

EU 25%

As % of turnover 2012




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Our Corporate Family

SIPU International is one of seven international subsidiaries of FCG – Finnish Consulting Group; a multi-industry consulting company operating worldwide.

fCG ProdUCe ServICeS ranging from decision-making support and operational devel-opment to community planning with attention to environmental values.

The strategy is to provide services tailored to meet the specific needs and requirements of FCG’s various clients. This is done by combin-ing core project management capabilities with substance expertise, in cooperation with a variety of expert organisations globally. These partner-ships include universities and other educational establishments, economic and social research organisations, public sector organisations, private consultancies and other companies, ngos and independent consultants.

FCG have been involved in creating well-being in more than 5 000 projects across the world with the experience of implementing complex, large-scale development projects in all our main sectors.

The turnover of 2012 was 66,5 million Euros for FCG. The number of FCG Group’s employees is approximately 700. The Managing Director of FCG is Mr. Ari Kolehmainen, M.Sc. (Adm.). FCG’s main owner is the Association of Finnish Local and Regional Authorities with ownership of 94%.

FCG’s subsidiaries operate directly under the parent company. FCG’s international subsidiaries are:• AnzdecLtd,NewZealand• OüInvicta,Estonia• FinnishConsultingGroupSRL,Romania• SIPUInternationalAB,Sweden• POVVIKAD,Bulgaria.

The domestic subsidiaries in Finland are: • FCGTrainingandConsultingLtd• FCGDesignandEngineeringLtd• FCGKnowledgeManagementLtd• FCGInternationalLtd.

»FCG – Working for well-being«


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Where We WorkAfghanistan

AlbaniaAlgeriaAngola

ArmeniaBangladesh

BelarusBenin

BhutanBolivia

Bosnia-HercegovinaBotswana

BrazilBurkina Faso

CambodiaChina

ColombiaCosta Rica

CroatiaDem. Rep of Congo

DenmarkDominican Republic

East TimorEcuador

EgyptEl Salvador

EstoniaEthiopiaFinlandGambiaGeorgiaGhana

GuatemalaGuyana

HaitiHondurasHungary

IndiaIndonesia

IraqIsrael

JamaicaJordanKenya

KosovoKyrgyzstan

LaosLatvia

LebanonLesotho

LiberiaLithuania

MacedoniaMalawi

MaliMauritiusMoldova

MongoliaMontenegro

MorrocoMozambique

NamibiaNepal

NicaraguaNorth Korea

NorwayPakistanPalestinePanama

PeruPoland

RomaniaRussia

RwandaSenegal

SerbiaSeychelles

Sierra LeoneSlovakiaSlovenia

South AfricaSri Lanka

SudanSweden

SwitzerlandSyria

TajikistanTanzaniaThailand

TunisiaTurkey

UgandaUkraine

United StatesUruguay

West Bank & GazaVietnamZambia

Zimbabwe

See

also

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ipui

nter

natio

nal.s

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SIPU’s Presence 1992 – 2011SIPU’s Presence 2012

ANNUAL REPORT 2012 • SIPU International AB

AlbAniA: SiPU is supporting the Albanian ombudsman to protect

and promote human rights and the rule of law in Albania.

See page 15.

nicArAgUA: in nicaragua and two other countries in 2012, SiPU piloted a »reality-check« approach to evaluation, which involves immersion in the communities receiving Swedish support. See page 16–17.


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Where We Work

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ANNUAL REPORT 2012 • SIPU International AB

Sweden: in 2012 SiPU greatly expanded its popular courses offering to Swedish civil servants. See pages 20–23.

UkrAine: in Ukraine SiPU is running a 4 year budget reform and Aid Management (bAM) project, together with the Ministry of Finance. See pages 18–19.

VietnAM: in 2012, 80 public officials from South and east Asia came to Stockholm for training in local environmental Management in Urban Areas. See page 23.

tUrkey: SiPU is leading the technical Assistance to civil Society Organisations (tAcSO) project, developed to strengthen the role of civil society in the western balkans and turkey. See pages 12–13.

kenyA: SiPU helped develop a national Urban development Policy for the Ministry of local government. See page 14.


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Project title country client Financier(s)Value of contract

in eur

Evaluation FWC: Mid-Term Review of the Malonda Program, July 2010 – June 2013

Mozambique Sida Sida (call off) 99 000

PA/Demo, PFM Support in Liberia Liberia Sida Sida (call off) 246 200

Support to the Development of Market & Value Chains in Agriculture in Liberia

Liberia Sida Sida 100 000

EDF – Long-Term Technical Assistance to the General Auditing Commission, Liberia

LiberiaGeneral Auditing Commission

EC 800 000

PA/Demo, Support African Union Advisory Board Against Corruption

Ethiopia, Tanzania

Sida Sida (call off) 50 967

MD-FWC: Consultancy Support to the Ministry of Agriculture to Conduct a Survey on Value Chains for the Agricultural Sector Development Support Programme (ASDSP)

KenyaThe Government of Kenya

Sida (call off) 81 000

Evaluation FWC: Evaluation of Liberia Dujar Association Liberia Sida Sida (call off) 32 859

Evaluation FWC: Review of Two Facilitators – The Swedish Geological Survey (SGS) and the Swedish Trade Council (STC)

South Africa Sida Sida (call off) 26 022

MD FWC: ToR Development to the Project Maghreb Re-gional Project – Public Employment Services in Algeria, Morocco and Tunisia

Regional Sida Sida (call off) 3245

NIMES National Integrated Monitoring and Evaluation System

KenyaThe Government of Kenya

Sida 1 055 635

PFM Reform Strategy Kenya Sida Sida 66 752

Support to Audit Services, Sierra Leone Sierra Leone Auditor General Dfid 956 926

Consultancy Support to EDM Mozambique Mozambique Sida Sida 37 085

National Urban Development Policy in Kenya KenyaMinistry of Local Government

Sida 115 349

Strengthening IFAPAs Municipal Training Mozambique Local government NUFFIC 38 745

ITP – Local Democracy and Self-GovernanceRegional/Africa

ICLD Sida 2 186 393

ITP – Human Rights Towards Gender Equality, MENA Region

Regional/MENA

Sida Sida 1 556 502

Evaluation FWC: Evaluation of Sida’s Support to Bir ZeitUniversity Media Development

Palestine territories

Sida Sida (call off) 59 900

Strengthening of the State Audit and Administrative Control Bureau

Palestine territories

State Audit and Administrative Control Bureau

EU 66 752

Development of a Master Programme in Public Administration

Vietnam Uppsala UniversityUppsala University

309 412

Implementation of a Master Programme in Public Management

Vietnam Uppsala UniversityUppsala University

793 405

Technical Assistance to Implement One-Stop Shop Public Service Delivery in Bhutan

BhutanThe Government of Bhutan

Swiss Development Cooperation

177 331

Danish Support to the Albanian Ombudsman AlbaniaAlbanian Ombudsman

DANIDA 661 186

Support to the Albanian Ministry of Interior (MOI) /Albanian State Police (ASP) on Community Policing

AlbaniaAlbanian State Police

Sida 2 803 793

Lot 11, Support to the Treasury Service of the Ministry of Finance of Georgia

GeorgiaMinistry of Finance, Georgia

EC (call off) 89 746

PA/Demo, Sector Support to Education and Forestry in Kosovo

KosovoSwedish Embassy, Kosovo

Sida (call off 315 053

EU-Ukraine Advisory Services, (PA/Demo FWC) Ukraine Sida Sida 214 585

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SIPU Projects 2012 – Ongoing and Finalised


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Project title country client Financier(s)Value of contract

in eur

TACSO – Capacity Building of Civil Society in the IPA Countries (Western Balkans and Turkey) PHASE 2

Regional/Balkan

EU EU 6 908 676

Capacity Building of Georgian Leadership Georgia

Georgian Founda-tion for Strategic & International Studies

Sida 739 064

State Tax Service of Ukraine Ukraine Sida Sida 513 205

Public Administration Reform SerbiaMinistry of Local Government

Sida 936 854

Capacity Development of the Entity Associations of Municipalities and Cities

Bosnia & Herzegovina

Sida Sida 133 000

Budget Reform and Aid Management in Ukraine UkraineMinistry of Finance

Sida 2 450 980

Fostering Interventions for Rapid Market Advancement (FIRMA)

Bosnia & Herzegovina

USAID & Sida USAID & Sida 3 282 949

Governance Accountability Project (GAP) 2Bosnia & Herzegovina

Chemonics International

Sida 85 350

ITP – Environmental Governance and Management with EU Focus

Regional/Balkan

Sida/ Natur-vårdsverket

Sida/ Natur-vårdsverket

52 073

Training Courses for the Swedish Public Sector SwedenVarious public sector clients

Various public sector clients

835 557

Customised Education and Training SwedenVarious public sector clients

Various public sector clients

213 440

Course Administrative and Mentor Support SwedenThe Swedish Public Employ-ment Service

The Swedish Public Employ-ment Service

183 500

Evaluation FWC: Review of Sida’s Program for Development Research (U-forsk)

Sweden Sida Sida (call off) 38 521

Organisational Assessments of Civil Society Organisa-tions (CSO) in View of Possible Qualification as Sida’s Framework and/or Strategic Partner Organisation

Sweden Sida Sida 2 808 989

MD FWC: M4P (Making Markets Work for the Poor) Training

Sweden Sida Sida (call off) 92 255

Mid-Term Review of the Swedish Programme Global Development Cooperation in the Area of Chemicals

SwedenSwedish Chemicals Agency (Kemika-lie-inspektionen)

Swedish Chemicals Agency

112 506

SCB International Payroll Services Sweden SCB SCB 92 988

ITP – Administration Services National Employment Agency 3

Sweden

Swedish National Employment Agency (Arbets- förmedlingen)

Swedish National Employment Agency

26 679

Evaluation FWC: Evaluation of Support to Political Parties in Bolivia

Bolivia Sida Sida (call off) 67 838

Dominican Republic IDOMDominican Republic

Government of Dominican Republic

EC 18 487

CSO Reality Check: A Multi-Year Results-Oriented Evaluation of Sida’s Support to Civil Society Actors in Developing Countries via Swedish CSOs

Global Sida Sida 591 716

MD FWC: Support to PIDG Sweden Sida Sida (call off) 12 400

Evaluation of the Danida’s Fellowship Programme (DFP) Global DANIDA DANIDA 190 532

ITP – Local Environmental Management in Urban Areas Global Sida Sida 2 813 895

ITP – Human Rights Towards Gender Equality, Global Global Sida Sida 2 903 836

ITP – Private Sector GrowthRegional/Africa

Sida Sida 1 993 750

ITP – Strategic Business ManagementRegional/Africa

Sida Sida 1 984 000

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Bringing the World to Sweden

Before I came here I could only see the tip of the iceberg. Participant, Local Environmental Management in Urban Areas

The planning of the programme is very relevant to my professional needs.

Participant, Local Environmental Management in Urban Areas

By orGAnISInG ItP ProGrAMMeS, SIPU International supports and strengthens the participants’ home institutions in their efforts for change at organisational and sector levels. In all training-related services, we apply a highly participative approach where all partici-pants contribute their respective experience and knowledge.

International Training Programmes (ITPs) are financed by the Swedish International Development Cooperation Agency (Sida), as part of its

bilateral development assistance. The programmes are designed for key individuals qualified to participate in important reform processes in

their home countries.

BUSINESS AREA: INTERNATIONAL TRAINING PROGRAMMES

● SIPU International in collaboration with sweco Environment executes an International Training Programme on Local Environmental Management in Urban Areas targeted at Countries in South East Asia. Previously the programme targeted Africa and Eastern Europe.

By combining expert lectures on the Swedish experience, environmental management methods and global trends with field trips and group work and discussions, the programme aims at strengthening the participants’ capacity in the field of Local Environmental Management in Urban Areas with a main focus on increasing participants’ ability to prioritise where resources are scarce.

The programme supports participating

organisations’ own plans for change by offer-ing participants a Swedish mentor with expert knowledge on change management and environ-mental management.

The programme draws participants from local or regional environment administrations or other local/regional authorities, where environ-mental management is a key element of the work. The programme also welcomes partici-pants from private sector firms that collaborate with local environmental authorities or ngos working locally.

Project countries: China, Cambodia, Bangladesh, India,Indonesia,NorthKoreaandVietnam.●

project brief ITP Local Environmental Management in Urban Areas

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The planning of the programme is very relevant to my professional needs.

Participant, Local Environmental Management in Urban Areas

The programme gave me knowledge of practical tools and strategies required to affect change in my own organisation.

Participant, Private Sector Growth

project brief ITP Advanced International Training Programmes in Private Sector Development

● The world is rapidly changing and business leaders are at the sharp edge of this transforma-tion. New technology, changing consumer preferences and globalization of markets are creating challenges and opportunities for busi-nesses everywhere.

SIPU International, in close collaboration with Jarskog Konsult, executes two new Inter-national Training Programmes in Private Sector Development: Private Sector Growth and Strate-gic Business Management. The objective of these programmes is to contribute to the development of a dynamic and sustainable private sector, and to strengthen collaboration between the private and public sectors for better functioning markets and improved integration in world trade.

The programmes support individuals and teams in their work to develop plans for change and combine international, regional and Swedish perspectives on how to promote private sector development.

Private Sector Growth targets key officials work-ing with national private sector development and Strategic Business Management is designed for business leaders. The training programmes are interlinked running parallel with common sessions opening up for dialogue between the two groups.

Target countries: Africa: Kenya, Tanzania, Uganda, Rwanda, Ethiopia; Europe: Bosnia & Herzegovina, Kosovo, Moldova, Ukraine, Georgia. ●

project brief ITP Local Environmental Management in Urban Areas

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Strengthening the Voice of Society

SIPU InternAtIonAl has during the last ten years acquired substantial experience of assist-ing and facilitating civil society development, through measures aimed at strengthening the institutional framework for civil society actions as well as through capacity development of individual organisations. On the request of Sida, SIPU International has also developed a meth-odology for assessment of civil society organisa-tions’ capacity.

project brief Strengthening civil society in Western Balkans and Turkey● A strong Civil Society plays a key role in the European harmonisation process, representing, as it does, a wide range of interests and alterna-tive views in society. Civil Society Organisations (csos) can help transform their societies by pro-moting basic values of democracy, human rights, good governance and the rule of law. They can drive forward required reforms that will assist the countries concerned in their aspirations to become eu members.

The Technical Assistance to Civil Society Organisations (tacso) project is a large scale effort to support civil society in all eight ipa countries. SIPU International, together with four European ngo partners was awarded this ec contract in 2009. Services are provided during

Civil society has the potential to contribute to development and the further democratisation in many countries. Civil society organisa-

tions have reached different levels of development and effectiveness, and they exhibit diversity with regards to type of activity and degree

of capacity development. At the same time, they share a number of key challenges to becoming significant actors in the development of their own country, whether as legitimate advocates with and for citizens, as partners of government in policy dialogue or as participants in the wider process of societal reform.

a period of four years until August 2013. Based on the success created by tacso, the European Commission has decided to extend the project through a third phase of cooperation. The pro-ject involves over 30 professionals in ten offices all over the region. Coordinated from a hub in Sarajevo, project activities span from institu-tional framework interventions (policies, legal improvements, funding mechanisms, etc.) to training and advocacy campaigns, covering both regional and national issues and dimensions.

Each country programme is firmly based in the local civil society context and is governed by a local advisory board with stakeholder repre-sentation including national csos, government bodies and donors. This approach ensures that the programmes are relevant and addresses the actual needs and challenges of the csos in each national setting, and that the results are sustaina-ble. Needs assessments conducted by the project show that currently csos have limited influence in decision-making processes. Concrete action will spur others and create a momentum to de-velop a sense of common agenda and strengthen cohesion in the third sector.

Although there are many strong organisa-tions, insufficient organisational capacity is com-mon, especially among organisations in rural areas. The project has access to both regional and international experts who assist the organisations in the further strengthening of their capacities.

BUSINESS AREA: CIVIL SOCIETy DEVELOPMENT

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The project reaches out and provides assistance also to smaller organisations in remote areas.

The most advanced csos, based in capitals, and with developed programmes, benefit from regional meetings and trainings together with like-minded organisations from the other ipa countries and eu member states. Another im-portant instrument of learning and information-sharing is the regional web portal with links to eight national web sites.

The main expected outcomes of this project are:• Strengthenedcapacityofcsos to further

their agenda, and thereby• Increasedinfluenceofcsos in democratic

decision-making processes• Improvedcapacityofcsos in service delivery• Strengthenedcooperationandnetworking

among the csos and between external stakeholders and csos

• Raisedpublicawarenessofcivilsocietyandits organisations.

The primary means of assistance are capacity-building activities such as trainings, e-learning, exchange of experience, advising, coaching, etc. and networking activities such as kick-offs, partnerships and information events both at the national and regional level. The first training topics include Fundraising for csos, Develop-ing and managing eu funds, Advocacy and

lobbying, Civil participation in the decision making process and cso management. Particular attention has been given to the task of designing support schemes which are flexible enough to respond to both the needs of more advanced and the less developed csos. As project imple-mentation has progressed, issues concerning the institutional framework for civil society as well as regional networking have become increasingly important. ●

the enlargement of the european Union has been pursued as the

principal means of ensuring last-ing peace and stability. today, this

strategy is focused on assisting the countries of South-east europe

for accession to the eU. the eU has created the Instrument for

Pre-accesion (IPA) for this purpose. the instrument finances projects

in Albania, Croatia, Bosnia and herzegovina, kosovo under UnSCr 1244/99, fyr of Macedonia, Monte-

negro, Serbia and turkey.

technical Assistance to Civil Society organisationsWestern Balkans and turkey, european Commission, August 2009 – August 2013 for further information visit www.tacso.org.

During TACSO tenure we have delivered over 200 trainings on various topics. In all our trainings, we applied a partici-pative approach using inclusive methodologies and encouraging dialogue and debates.

Palle Westergaard Team Leader TACSO

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SIPU’S APProACh to urban development is that it is an integrated process in which the eco-nomic, social, environmental and geographical/ spatial factors are planned. Local government development is usually broader and involves support to the entire governance structure, its administrative support systems as well as sup-port to service delivery areas.

Recent services provided by SIPU include:• Integratedmunicipaldevelopment,builton

comprehensive urban planning• Townshipupgradingandcommunity

development• Innovativeandecologicalsolutionstolow

cost housing, including housing support centres

• Participatoryplanning• Environmentalurbansustainability• Localareaplanning• Institutionaldevelopmentandhuman

resources management• Municipalfinancialmanagementand

budgeting• Developmentofservicedeliveryonlocal

level and coordination of service delivery mandates for other public sectors.

New Challenges for Urban Planners

project brief National Urban Development Policy for Kenya● SIPU has, in collaboration with a Kenyan Consultant, provided support to the Ministry of Local Government to facilitate and backstop a stakeholder-driven process leading to the formu-lation of a National Urban Development Policy (nudp). The purpose of the policy is to enhance the role and contribution of urban centres to national socio-economic development and to strengthen governance, development planning, urban investments, delivery of infrastructure and relatedservicestocontributetoKenya’sVision2030. The Government of Kenya has emphasised the need for a nation-wide consultative process and much of the work has focussed on this ambition.

SIPU has taken part in and supported all parts of the process, such as thematic work groups, consultative meetings, dissemination of the preparation process, as well as in the draft-ing of the entire nudp. We have provided input to the communication strategy and conducted benchmarking visits.

This policy has been endorsed by Cabinet and passed by the National Legislature.

What remains to be done is the dissemination of the new urban policy, to make it happen. ●

Effective and service oriented local government makes a difference for poor people. SIPU supports the development of local govern-

ment institutional frameworks and governance structures, effective support systems and gives advice regarding the scope and content of

service delivery. Strategic urban planning is a tool for the management structure. Such a sustainable plan integrates the spatial development, environmental conditions, social needs and economic development under one accepted vision, based on the specific urban profile. It sets out the principles for decision making.

BUSINESS AREA: LOCAL GOVERNMENT AND URBAN DEVELOPMENT

15


Building Effective Institutions & Governments

project brief Community Policing in Albania● Since March 2012 SIPU runs a project together with the Albanian State Police (asp) on Commu-nity Policing. The project is sponsored by Sida and will go on until 2015.

The project aims at improving asp’s ability to provide security and safety with the citizens’ needs in focus. Furthermore it aims at increasing the public trust in asp and willingness to cooper-ate to reduce crimes.

The project has three goals: 1. The implementation of an evidence-based

Performance Management System. This will allow the asp to track their performance and be able to strategically deploy suitable resources to support activities in an effective and efficient manner.

2. The police are able to solve and prevent more crimes with the assistance and coop-eration of the public. Increased trust and level of cooperation between the asp, local government, central government, ngos and communities.

3. Stakeholders dealing with domestic violence, including the asp, are better able to deliver services to reduce incidents of domestic violence. Improved coordination between the asp and other actors to ensure adequate treatment of domestic violence cases

The project is coordinated by a Project Manage-ment Team (pmt) with a staff of six. In addition to pmt’s own capacity a number of project activi-ties is being implemented by local partners that

The state, rule of law and accountability are the basis of political order. A strong state counterbalanced by a strong civil society helps to ensure accountability upwards as well as downwards and creates conditions for democracy to function. Political and economic institu-tions that are inclusive contribute to making socioeconomic development sustainable and fair and equitable for all citizens.

are contracted to the project. Project activities entail a number of studies, awareness campaigns, trainings, seminars and also the establishment of a small grant scheme for strengthening relations between the police and the public. ●

project brief Support to the Albanian Ombudsman● SIPU and Danish Institute for Human Rights (dihr) has been awarded a Danida funded pro-ject in support for the Albanian Ombudsman. The project will run for four year and includes cooperation in the fields of strategic planning, cooperation with media and civil society, prison monitoring and the ombudsman presence at the local government level. ●

BUSINESS AREA: GOOD GOVERNANCE AND PUBLIC ADMINISTRATION REFORM

Albanian Ombudsman Mr Igli Totozani (in the middle)

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Evaluation has a central role to play in today’s international develop-ment cooperation. It is promoted and advanced as a key tool for

ensuring development effectiveness, transparency and accountability in policy-making, social and organisational learning.

Finding Out What Works and Why

When SIPU InternAtIonAl carries out evalu-ations, professionalism is our guiding value. To us, this means that: • Highqualityevaluationsshouldbebasedon

well-grounded methodologies and carried out by professionals. We only work with qualified evaluation consultants with proven track records in carrying out evaluations.

• Highqualityevaluationsshouldbeuseful.Understanding the information needs of our clients/commissioners is therefore a primary focus when designing and carrying out evaluation assignments. Through a close dialogue with the commissioner, and by involving main stakeholders throughout the evaluation process, we ensure utility of our evaluations.

Evaluation has become a core competence for SIPU International and is today one of our fastest growing business areas. In 2012, we established an Evaluation Unit with three full-time staff committed to constantly improv-ing our evaluation work, expanding our services across clients, thematic areas and methodologies. The unit brings a comprehensive expertise in this business area guaranteeing quality design, implementation and qa of evaluation projects. With close connections and contacts with lead-ing experts and research centres within the global evaluation community, the Evaluation Unit staff have extensive experience of both managing and conducting all from rapid assessments to large-scale, complex evaluations.

BUSINESS AREA: EVALUATION AND PROJECT CyCLE MANAGEMENT

● In spring 2012, SIPU International – in colla-boration with Oxford Policy Management – carried out an evaluation of Danida’s Fellowship Programme (dfp).

The objective of the dfp is to support capac-ity development in developing countries through the organisation of a wide variety of different types of training activities, including both short

courses and longer-term postgraduate study. The purpose of the evaluation was to document and assess the activities supported by Danida, and related results, with an aim to contribute to both accountability and learning. To this end, the evaluation assessed the different achievements of the programme, as well as the framework and processes for achieving the results. ●

project brief Evaluating Danida’s Support to Capacity Development in Developing Countries

17


● Swedish popular movements have been key players since the emergence of the Swedish Government’s bilateral development cooperation work. Support via csos has represented approxi-mately ten per cent of Sida’s total funds since he 1980s. The system of framework agreements was established in order to grant these organisa-tions greater freedom, to support long-term approaches to the planning and implementation of activities, as well as to allow for continuous dialogue with Sida concerning policy and methodological work.

Starting in the summer 2012, SIPU Interna-tional carried out organisational assessments of 17 csos seeking to qualify for framework agree-ments with Sida. The assessments will be used as support in Sida’s upcoming decisions concerning the possible qualification of these organisations as framework organisations.

As of 2012, csos are assessed against a number of qualification criteria. As part of the assignment, these criteria were operationalised by SIPU International in order to be applied in the organisational assessments. ●

● In June 2012, SIPU International – in collabora-tion with the Institute of Development Studies (ids) and iod parc – was contracted by Sida to carry out a multi-year results-orientated evalua-tion of Sida’s support, via Swedish Civil Society Organisations (csos), to civil society actors in developing countries. The main purpose of the evaluation is to explore how and why (or why not) this support contributes to the overall objectives of Swedish support – that is, to create conditions to enable poor and discriminated people to improve their living conditions and quality of life.

This innovative evaluation is using a bottom-up perspective (a so-called Reality Check) where the voices of poor and discriminated people are at the very centre. To collect these voices, the evaluation team uses immersions (i.e. overnight stays in people’s homes or nearby), participant observation and listening. Transparency in the method, the process and the results is integral.

The evaluation started in August 2012 with a pilot study in Nicaragua, Pakistan and Uganda and will continue with two follow-ups in 2013 and in 2014, in order to observe changes. ●

project brief Civil Society Organisations’ Qualification as Sida’s Framework Organisations

project brief A Multi-Year Evaluation Based on Poor People’s Perspectives

Members of a household in chinandega, nicaragua during the pilot phase of the reality check evaluation.

18


Stewarding Public Resources for Public Good

SIPU InternAtIonAl AdoPtS an integrated approach to Public Financial Management. With an integrated approach we are able to combine strengthened public finance management in systems and organisations with a sector perspec-tive and its objectives. SIPU International has a clear understanding of the relationships between political and institutional processes and policy reform, not least the links between policies, budget and expenditure management and institutional and organisational change. Assess-ing these links is a key aspect to a successful implementation of any reform process, especially within public financial management.

SIPU International has a strong track record in all sub areas of pfm such as budget formulation and mtefs, performance budgeting, audit and internal control and revenue management. Effective Public Fi-nancial Management has a strong potential to contribute to poverty reduction by among other things improving the alloca-tive efficiency of the state budget.

Public Finance Management (PFM) is about ensuring that public resources are used effectively. It entails the development of systems,

organisations and frameworks which should enable effective, efficient and transparent management of public finances. It is not an end in itself

but a means to enhance the benefits and development of other areas such as social service delivery, natural resource management, effective governance and democracy, accountability and transparency.

project brief Supporting Budget Reform and Aid Management in Ukraine● In Ukraine SIPU runs the Budget Reform and Aid Management (bam) project, together with the Ministry of Finance. The four year project, ending 2013, has two components: aid management and budget reform. The first aims at enhancing the Ministry’s capacity to man-age external resources. This has been done by introducing a new programming cycle for donor coordination (including external monitoring systems, donor coordination procedures and a procedures manual) and various capacity build-ing activities.

The support for reforming the budget process includes introduction of a comprehensive macroeconomic and budgetary forecasting model (adapted to Ukrainian conditions), improved strategic planning by elaboration of new forms and instructions for budget requests, plans of activities, annual work plans and budget instruc-tions (described in a methodological booklet), revision of the annual budget calendar (to include Medium Term Expenditure Framework, mtef) and capacity building (by delivering a series of seminars and workshops).

The bam project is financed by Sida and is implemented by a team of six permanent staff and more than ten temporarily engaged experts. ●

BUSINESS AREA: PUBLIC FINANCE MANAGEMENT

19


● Improvements in Public Financial Management is also a means to enhance aid effectiveness as well as external control and accountability for donor funded projects. SIPU international assist donor agencies in assessing and managing fiduciary risks as well as setting up more effective donor coor-dinated mechanisms with joint frameworks for expenditure management, risk assessments, results frameworks and monitoring and evaluation.

In Kosovo SIPU International has assisted the Ministry for Education, Science and Techno-logy (mest) in adopting a Sector Wide Approach (swap) for its entire operation. First the support was directed to enhance the capacity in plan-ning and budgeting though a road map for the education sector. Thereafter the capacity building and education reform project aimed at designing a programme based approach and to assist and support the Ministry in elaborating essential building blocks and mechanisms for a swap to education. An important result of this support was the elaboration and adoption of a Kosovo Education Strategic Plan for the Education Sector 2011–2016 – the kesp. In the Strategic Plan the Government states that the objective is to channel

all significant funding to the education sector towards supporting the government priorities and interventions. With a Strategic Plan in place on-going and future external support to the Ministry is aligned to the plan. This has helped to achieve better coordination of efforts and enhance the quality and effectiveness of the education system. Every year a sector progress report is developed reporting on progress made and challenges ahead. A Joint Annual Review was organised for the first time in 2012. The review was a two day confer-ence, which SIPU International helped organise. It gathered most of the important stakeholders of the sector from government, development partners and civil society organisations. These stakeholders jointly reviewed progress made and identified main priorities for the coming year and beyond. This joint approach has led to increased coordination of sector activities, strengthened ownership on behalf of the government and further alignment of donor support to national priorities. The Education Sector is among the first Sector Wide Approach in Kosovo and has served as an example also for other sectors in adopting similar approaches. ●

project brief A Sector Wide Approach to Education in Kosovo

● A country’s ability to generate revenues is an important aspect of public financial management and a key element towards ensuring government accountability, service delivery and sustained growth. SIPU International has longstanding experience working within revenue management, in particular through supporting organisational development of tax agencies. Work has primarily been focused on organisation change, capacity building and the development of it systems. Revenue management related to extractive indus-

tries is an area of growing importance in many developing countries. The Extractive Industries Transparency Initiative (eiti) is a global standard for revenues from natural resources which aims to strengthen governance by improving transpar-ency and accountability in the extractives sector. In 2012, SIPU International became the only Swedish Consultancy firm accredited to carry out validations at country level within the Extractive Industries Transparency Initiative. ●

project brief Increasing Transparency in Extractive Industries

20


Professional Training for Swedish Civil Servants

An efficient public administration requires continuous training and capacity development of its staff. National and local administrations

need to stay up-to-date on administrative rules and regulations, but also in inter-related areas such as project and personnel management,

public procurement and office administration. SIPU offers a comprehensive selection of professional courses focused on improving and sustaining an efficient public administration. Clients may send personnel to our open courses or contract us for tailor made training in their own premises. This provides the clients an opportunity to receive training tuned to their own needs.

● eu funding offers opportunities to implement development projects that may not otherwise have been possible in public administration offices or municipalities. eu projects boost pro-fessional network building, create transnational collaboration opportunities and add significant value to participating organisations. Managing an eu financed project, however, is very demand-ing; rules and regulations are numerous and financial controls stringent.

SIPU offers eu courses that help applicants and project managers avoid the most common traps and to develop realistic projects with achiev-able goals, while complying with audit require-ments. Participating in our eu courses is relevant for project managers as well as project team members, financial officers and administrators.

In May 2012 we started a new major training programme, comprising of 40 full days of tailor made eu training delivered to officials in municipalities, universities, county councils

and regional authorities in South Sweden. This training reaches 260 participants in 8 different training programmes, between September 2012 and June 2013.

Examples of open eu courses offered by SIPU in 2012• Applyingforeu funding – from idea to

successful grants application• Planninganeu project – reach goals through

strategic project and communications plan-ning

• Managinganeu project – from start to final reporting

• Financialmanagementofeu projects – from budgets to audit

• Archivinganeu project – documentation and secure archiving

• eu funds – how to find the right funding for your project. ●

BUSINESS AREA: SWEDISH PROFESSIONAL TRAINING

business area: EU Project Cycle Management

Exceeded expectations. It made me want to go on more SIPU courses. Or even to work there!

Participant, SIPU’s Public Administration & Law course

21


● SIPU is a well-known provider of training in public administration and law for officials in public administration and government offices in Sweden. The Administration and Law courses offer expert presentations combined with opportunities for individual questions and case discussions. They target a broad spectrum of professionals, whether employed as officers, managers, legal advisors/solicitors, assistants or registrars, regardless of the number of years in a specific position.

There is a steady demand for training in this area, partly because of personnel changeover, but also because legislation and practice is continu-ously changing. Officials need to keep up-to-date in order to possess proficiency in the handling of cases, especially having good knowledge of the complicated legislation related to open access to public documents and rights to privacy, confi-dentiality and secrecy.

In 2012 SIPU’s Public Administration and Law courses were more popular than ever before.Examples of courses in Public Administration and Law provided in 2012:• Administrativelawformanagersinthe

public sector• Managingandprocessingadministrative

cases• Processingandpresentingadministrative

cases• Publicaccessandsecrecyforlegalpractitioners• Newsandcasesinpublicaccessandsecrecy

for legal practitioners• Publicaccessandsecrecyforregistrars• Advancedcourseonpublicaccessand

secrecy for registrars• Systematicpreventioninpublicadminis-

tration of corruption, bribery and other irregularities. ●

business area: Public Administration and Law

● SIPU is one of Sweden’s largest training providers in public procurement and offers open courses as well as tailored training from basic to advanced levels. SIPU has run training courses on procurement since the Public Procurement Act (lou) came into force in 1992. Even before that, SIPU as a statutory organisation ran procurement training.

Public procurement is an expanding area today. The requirement that public authorities follow lou exactly is increasingly enforced. No authority wants to be held responsible for impermissible procurement, or for the use of tax revenues in a careless manner. Currently there is a significant generational shift that leads to newly recruited staff with great training needs. We believe that there will continue to be a major demand for training in this sector.

Examples of courses within the public procurement business area are:• Basicandcontinuationcourseinpublic

procurement• Clearspecificationsandeffectiverequire-

ments definition• Procurementofconsultantsandservices

• Competitivedialogue• Publicprocurementofbuildingcontractors• Practicalcontractlaw• Procure,measureandevaluatequalityin

health and social care service procurement under LOU

• Strategicprocurementforpurchasingauthorities

• Contractadministrationinpractice.●

business area: Public Procurement

22


SIPU has worked with personnel and organisa-tional development at national and local gov-ernment levels since the 1970s, and has wide experience from Sweden as well as from our international work. The year 2012 saw the launch-ing of a new initiative in the form of staff surveys for municipalities. Through a combination of the company’s long experience and a new specially designed survey instrument we can now offer municipalities a unique support tool for both personnel and work environment development.

The staff survey is specifically designed with municipalities’ reality in mind. The survey’s accurate and relevant results create the condi-tions for successful improvement programmes.

SIPU collects and collates all the information in a database. As municipalities join the system, the database grows and provides an increasingly valu-able statistical base for comparative and trend analyses. Municipalities will be able to compare one another against common benchmarks and learn from one another’s best practices.

The instrument has been developed during 2012 and will be provided as an established service during 2013, available to all Swedish municipalities. Our vision is to provide munici-palities throughout the country the possibility of developing knowledge collectively, and make available to them practical examples, research findings and information.

● SIPU has offered courses in urban develop-ment and technical management since 2010. Today SIPU has a broad range of high quality courses in this area. Since 2010, almost 500 people have been through SIPU’s highly regarded courses in urban development and technical management. The business area continues to see great demand and today we have some of Sweden’s leading authorities in their respective areas as course leaders.

Some examples of our most popular courses • Landdevelopmentagreements• Coastlineprotection• Strategiclocalresourceplanningforflexible

and functional school premises• Exteriorpropertymanagementandclient

management• Estimatingandprice-settingofcontractsand

in-house contract work• Efficientwintermaintenanceandquality-

assured urban and street cleaning• Strategiclocalresourceplanningforhigh

quality housing for the elderly. ●

business area: Urban Development and Technical Management

staff surveys for swedish municipalities

The Workplace of the Future – Development and Learning in Municipalities

23


Managing Sustainability The year saw continuing evidence of the impacts of climate change and challenges in raw mate-rial supplies. Continued rapid urban growth is testing the capacities of local governments to respond satisfactorily to residents’ expectations for safe and healthy living conditions, and for secure income.

SIPU International provides services in both urban and rural settings in response to these challenges. Our natural resource and environmental management activities appear in a number of guises, such as urban sustainability reviews and domestic and international train-ing in this sphere. SIPU has conducted three international programmes in Local Environment Management in Urban Areas with specific focus on Asia. Coastline Protection in Municipal Planning is an example of a course targeting the Swedish market.

Gender equality and women’s empowerment are essential for meeting the aspirations of inclusive and sustainable development. Gender equality means that all human beings have equal rights, responsibilities and opportunities in life and enjoy equality in law, regardless of whether they are born male or female. SIPU seeks to incorpo-rate gender-approaches and methodology into all our projects, whilst also carrying out projects with gender equality as the main objective.

At SIPU, we believe that the core of all gender equality work is change management. Changing social structures and norm systems is not an easy task, and calls for cross-cutting actions to be carried out by highly-skilled practi-tioners in partnership with our stakeholders and target groups. We believe that bringing gender-perspectives and tools into all our development work helps obtain far better results.

project brief International training Programme in human rights towards Gender equality● Gender equality is fundamentally a human rights issue. It is both an objective in itself as well as a necessity for long-term sustainable development. During 2012 SIPU International completed one of its largest International Train-ing Programs: Human Rights towards Gender Equality. From 2007 the program has trained and strengthened over 200 change agents in decision making roles in institutions and organisations in the field of human rights and gender equality. Each of these change agents has implemented at least one change project in order to effect and change social and institutional structures that lead to increased gender equality. Over 200 change projects have been implemented in eleven countries. ●

Gender Equality – a Human Right

BUSIneSS AreA: nAtUrAl reSoUrce & envIronmentAl mAnAgement • genDer eqUAlIty

24


Supporting Inclusive Economic Growth

the PrIvAte SeCtor And PUBlIC InStItU-tIonS both play important roles in bringing about economic development for all – inclusive economic development is only possible with effective and transparent institutions that are responsive to citizen’s needs.

SIPU has a long tradition of working in projects for public reform and institutional capacity building, areas of importance in creat-ing an enabling business environment as well as promoting a more dynamic, innovative, diverse and fair private sector. SIPU’s approach lies in applying these core competencies in engaging a diverse range of actors ranging from business

enabling institutions and entrepreneurs, regulatory bodies and civil society organisa-tions. Constantly building upon its strengths whilst developing innovative and forward-thinking initiatives, SIPU is a strong partner in market development – an area that is increas-ingly viewed as a key component of the global development agenda.

Economic growth is an important contributor to development, lead-ing not only to increased incomes and access to markets for individ-

uals but also to increased resources for the governments for spending on institutional reform, infrastructure, education and health care.

BUSINESS AREA: MARKET DEVELOPMENT

project brief

Continuous Support to Sida’s work With Market Development

● SIPU International is the lead firm in a consor-tium providing Sida with on-going strategic and policy guidance as well as undertaking specialist technical assistance assignments. Support provided by SIPU has been diverse in nature, ranging from providing training in the m4p approach for Sida staff, advising on new public-private co-financing initiatives to developing terms of reference for technical assistance projects and carrying out evaluations and studies. ●

project brief Fostering Interventions for Rapid Market Advancement● SIPU, in consortium with Cardno EmergingMarkets Group, is involved in the Fostering Inter-ventions for Rapid Market Advancement (firma) project. This 5 year project is jointly funded by Sida and usaid and aims at developing and estab-lishing international competitiveness within three selected sectors in Bosnia and Herzegovina (wood, metals and tourism) as well as to strengthen the ca-pacity of business sector membership organisations. The overall objective of the project is to put Bosnia and Herzegovina on the road to eu accession by helping to develop a more competitive and robust private sector. Gender equality has been a central focus throughout the project, through activities that promote female entrepreneurship, increase oppor-tunities for women in the labour market and raise awareness of gender equality issues at work. ●

FirMA supported furniture suppliers exhibiting at the international furniture fair in cologne.


25

contents

Administration Report 26

Income Statement 27

Balance Sheet 28

Cash Flow Statement 29

Notes, with accounting principles 30

The Board of Directors and Managing Director of

SIPU International ABCorporate Identity Number 556448-4771

hereby present the

AnnUAl rePortfor the Period

1 January – 31 December 2012

Annual reportSIPU International AB • Corporate identity number 556448-4771

AnnuAl report 2012 • SIPU International AB

26

Administration ReportoperationsSIPU International AB was founded in 1992 and since that time has undertaken international consulting and training for the development of, primarily, the public sector in developing and transition countries. Our largest clients are Sida and the EU. In Sweden, the Company has just over 40 employees; world-wide there was an average of 62 employees during the year. We also contract a large number of sub-consultants in order to execute short or long-term assignments. In many of the assignments, we cooperate with other Swedish, international and local consulting organisations.

2012 was a good year. We started the year with a strong backlog of orders and succeeded in maintain-ing a good level of profitability in the international operations. The training course operations have also developed well, with a stable inflow of clients during the entire year and with several new products on the market.

Results and financial position 2012 2011 2010 2009 2008

Operating income 128,111 134,906 130,690 95,256 94,398

Profit after financial items 3,466 2,453 5,667 2,710 3,295

Balance sheet total 102,306 91,699 82,562 72,513 48,709

Equity/assets ratio (%) 18 19 22 24 36

Return on assets (%) 19 14 31 16 19

Return on equity after tax (%) 14 10 22 10 13

Change in sales (%) -5 3 37 1 -24

Average number of employees 62 55 55 35 32

pRoposed appRopRiation of pRofits

Retained earnings 9,660,725

Net profit for the year 1,953,626

total 11,614,351

the Board of directors proposes that profits brought forward be appropriated as follows

To be distributed to the shareholders 5,800,000

To be carried forward 5,814,351

total 11,614,351

BoaRd’s statement on the pRoposed dividendThe proposed dividend will reduce the company’s equity ratio to 13%. The equity ratio is set in light of the company’s continued profitability. The liquidity of the company is expected to be maintained at a satisfac-tory level.

The Board believes that the proposed dividend will not prevent the company from fulfilling its obligations in the short and long term, nor that the necessary investments will be affected. The proposed dividend can be justified with reference to what is stated in Chapter 17, section 3 § 2–3. (prudential rules).



27

Income StatementAmounts in TSEK

note1 Jan 2012

– 31 dec 20121 Jan 2011

– 31 dec 2011

opeRating income

Net sales 1, 2 126,944 128,506

Other operating income 1,167 6,400

128,111 134,906

opeRating expenses

Direct project costs -76,463 -82,802

Other external expenses 2, 3 -11,836 -10,817

Personnel costs 4, 5, 6, 7 -33,790 -35,937

Depreciation/amortisation 8 -644 -527

Other operating expenses -1,104 -2,081

-123,837 -132,164

opeRating pRofit 4,274 2,742

Interest income 23 30

Interest expenses -831 -319

pRofit afteR financial items 3,466 2,453

Appropriations 9 -650 -237

Tax -863 -641

net pRofit foR the yeaR 1,953 1,575



28

Balance SheetAmounts in TSEK

note 31 dec 2012 31 dec 2011

fixed assets

intangible fixed assets

Goodwill 8 1,574 525

tangible fixed assets

Equipment 8 683 893

financial non-current assets

Participations in Group companies 15 238 224

Investments held as fixed assets 16 3 3

total fixed assets 2,498 1,645

cuRRent assets

current receivables

Accounts receivable – trade 23,019 16,797

Current income taxes recoverable 1,277 285

Other receivables 716 400

Accrued, non-invoiced income 10 48,605 53,108

Other interim receivables 11 1,536 939

75,153 71,529

cash and Bank Balances 18 24,655 18,525

total cuRRent assets 99,808 90,054

total assets 102,306 91,699

equity 12

Restricted equity

Share capital (12,000 shares with a quotient value of SEK 100) 1,200 1,200

Statutory reserve 266 266

non-restricted equity

Retained earnings 9,661 9,086

Net profit for the year 1,953 1,575

total equity 13,080 12,127

untaxed ReseRves 13 7,619 6,969

cuRRent liaBilities

Accounts payable – trade 8,583 5,473

Liabilities to Group companies 1,147 3,050

Advance payments from customers 55,169 51,732

Other current liabilities 7,505 2,839

Other interim liabilities 14 9,203 9,509

total cuRRent liaBilities 81,607 72,603

total equity and liaBilities 102,306 91,699

memoRandum items

Pledged assets 17 27,991 45,387

Contingent liabilities None None



29

Cash Flow StatementAmounts in TSEK

1 Jan 2012–31 dec 2012

1 Jan 2011–31 dec 2011

opeRating activities

Operating profit before financial items 4,274 2,742

Depreciation/amortisation 644 527

Other non-cash items 4 0

4,922 3,269

Interest received 21 30

Interest paid -204 -319

Income tax paid -1,855 -831

Changes in working capital

Increase/decrease in work in progress 4,503 -4,338

Increase/decrease in accounts receivable – trade -6,222 10,157

Increase/decrease in other current receivables -913 523

Increase/decrease in accounts payable – trade 3,207 671

Increase/decrease in other current operating liabilities 5,797 9,440

cash flow fRom opeRating activities 9,256 18,602

investing activities

Investments in intangible fixed assets -1,309 0

Investments in tangible fixed assets -178 -50

Sales of tangible fixed assets 0 0

Investments in other financial non-current assets -14 -13

Disposals of other financial non-current assets 2 0

cash flow fRom investing activities -1 499 -63

financing activities

Repayment of debt -627 0

Increase/decrease in current financial liabilities 0 -2,941

Dividend paid -1,000 0

cash flow fRom financing activities -1,627 -2,941

Cash flow for the year 6,130 15,598

Cash and cash equivalents at the beginning of the year 18,525 2,927

cash and cash equivalents at yeaR-end 24,655 18,525



30

Notes and CommentsAmounts in TSEK

Accounting principlesThe annual report has been prepared in accordance with the Swedish Annual Accounts Act and the general advice and guidelines of the Swedish Accounting Standards Board, with the exception of BFNAR 2008:1, Annual reports in small limited liability companies (the K2 rules). The accounting principles remain unchanged compared with the previous year. Assets and liabilities have been valued at acquisition cost, unless otherwise stated. SIPU International AB does not prepare consolidated accounts, as the Company and all of its subsidiaries are included in the consolidated accounts prepared by the superior Parent Company.

IncomeThe Company renders fixed price service assignments for which income is recognised in pace with the execution of the assignment in accordance with the percentage of comple-tion method. Depending on the customer, the percentage of completion is determined either on the basis of the number of worked and invoiced hours/days or on the basis of delivered products (milestones). Of these two determination methods, the former is the most common. Net sales includes invoiced out-of-pocket costs.

Income taxReported income tax includes tax which is to be paid or received, regarding the current year, and adjustments concerning the previous years’ current taxes and changes in deferred tax. All income tax liabilities and assets are valued at their nominal amount according to the tax regulations and tax rates that have been decided or that have been announced and are likely to be adopted. In the case of items reported in the income statement, related tax effects are also reported in the income statement. The tax effects of items that are accounted for directly against equity are also reported directly against equity. Deferred tax is calculated according to the balance sheet method on all temporary differences arising between the reported value and the tax value of the assets and liabilities. Due to tax regulations, the Parent Company reports deferred tax liabilities on untaxed reserves as untaxed reserves.

translation of receivables and liabilities in foreign currencyReceivables and liabilities in foreign currency are reported at the closing rate of exchange, with the exception of advance payments from customers are translated reported at the historical rate of exchange. Exchange rate gains and losses on receivables and liabilities relating to operations are reported under ‘Other operating income’ or ‘Other operat-ing expenses’.

Intangible assets Goodwill is comprised of the amount by which the acquisi-tion cost exceeds the fair value of the acquired company’s net assets on the acquisition date. Intangible fixed assets are amortised on a straight-line basis over the asset’s estimated useful life. An amortisation period of 5 years is applied for goodwill.

tangible fixed assetsTangible fixed assets are reported at acquisition cost less depreciation. The depreciation period for depreciation according to plan is 3 years for computer equipment and 5 years for office equipment. In terms of tax treatment, the Company applies the supplementary rule.

financial non-current assetsFinancial assets which are intended to be held over a long period of time are reported at acquisition cost. If, on balance sheet date, a financial fixed asset has a lower value than its book value, the asset is written-down to the lower amount if the decrease in value can be considered permanent.

Accounts receivable – tradeProvisions for doubtful debts have been determined on the basis of individual assessment.

definitions of key ratiosEquity/assets ratioAdjusted equity as a percentage of the balance sheet total.

Return on capital employedProfit after net financial items plus financial expenses as a percentage of average capital employed. Capital employed consists of the balance sheet total less non-interest-bearing liabilities including deferred tax in untaxed reserves.

Return on equity after taxProfit after net financial items less tax payable for the year incl. deferred tax on appropriations as a percentage of adjusted equity.

Change in salesChange to operating income in comparison to the previous year.

otherIn the following notes and descriptions, information in brackets refers to the previous year.



31

Notes and CommentsAmounts in TSEK

note 1 • Distribution of net sales per market

Region 2012 2011

Eastern Europe and NIS 57,589 58,175

Latin America 2,668 1,968

Africa 11,727 13,721

MENA 1,867 44

Asia 297 4,643

EU 52,796 49,955

TOTAL 126,944 128,506

field of activity 2012 2011

Development Consulting 93,465 90,947

International Training Programs 21,123 27,052

Training (Sweden) 11,356 10,507

TOTAL 126,944 128,506

The Company has included overhead expenses for SCB’s personnel administration for foreign-based personnel under sales for 2012. These expenses amount to TSEK 7,814 and have been reported under EU. The corresponding amount for 2011 was TSEK 11,240.

Note 2 • Purchases and sales between Group companies

2012 2011

Purchases from Group companies 884 616

Sales to Group companies - -

note 3 • Remuneration to auditors

2012 2011

Audit engagement, PwC 150 108

Other services, PwC 128 60

TOTAL 278 168

note 4 • Average number of employeesThe average number of FTEs for 2012 was 62 (55), distributed by land/region as follows

2012 2011

land Men Women Men Women

Sweden 16 19 17 18

Eastern Europe and NIS 6 15 3 14

Africa 3 2 3 0

Latin America 1 0 - -

TOTAL 26 36 23 32



32

note 5 • Absence due to illness (%)

2012 2011

Total absence due to illness 0 1

Absence due to illness, men 0 1

Absence due to illness, women 0 2

Absence due to illness, 29 years of age or younger 0 2

Absence due to illness, 30-49 years of age 0 1

Absence due to illness, 50 years of age or older 0 1

Proportion of absence due to illness referring to absence for a period of 60 or more consecutive days 0 0

This information refers to personnel in Sweden.

Note 6 • Gender distribution among senior executives

2012 2011

Men Women Men Women

Board of Directors, incl. MD 3 2 4 1

Management, incl. MD 2 2 3 1

Note • 7 Personnel costs

2012 2011

salaRies and RemuneRation Md other Md other

Sweden 782 14,967 852 15,348

Other EU - 3,291

Eastern Europe and NIS 4,304 5,935

Latin America 1,288 -

Africa 2,602 1,259

MENA 843 10

North America - 199

TOTAL 782 24,004 852 26,042

social secuRity contRiButions 2012 2011

Pension costs 164 2,201 167 1,873

Other social security contributions 308 5,092 331 5,076

472 7,293 498 6,949

TOTAL 1,254 31,297 1,350 32,991

salaries and other remuneration to the managing director and Board of directorsSalaries and other remuneration to the MD and Board of Directors during 2012 amounted toTSEK 782 (852), of which bonus TSEK 0 (0).

pensions and similar benefits to the managing director and Board of directors Pensions to the MD and Board of Directors during 2012 amounted to TSEK 164 (167).

agreed severance payThe MD has a term of notice of 6 months.



33

note 8 • Intangible and tangible fixed assets

goodwill 31 dec 2012 31 dec 2011

Acquisition cost

Opening value 750 750

Purchases 1,309 -

Sales/disposals - 1

Closing value 2,059 750

Amortisation

Opening value -225 -75

Amortisation for the year -260 -150

Sales/disposals - -

Closing value -485 -225

closing Residual value 1,574 525

inventoRies 31 dec 2012 31 dec 2011

Acquisition cost

Opening value 2,521 2,471

Purchases 178 209

Sales/disposals -446 -159

Closing value 2,253 2,521

Depreciation

Opening value -1,628 -1,406

Depreciation for the year -384 -381

Sales/disposals 442 159

Closing value -1,570 -1,628

closing Residual value 683 893

note 9 • Appropriations

2012 2011

Reversal of tax allocation reserve 482 576

Transfer to tax allocation reserve -1,090 -813

Change in accelerated depreciation/amortisation -42 -

TOTAL -650 -237

note 10 • Accrued, non-invoiced income

2012 2011

Accrued, non-invoiced income 48,605 53,108

TOTAL 48,605 53,108

note 11 • Prepaid expenses and accrued income

2012 2011

Prepaid insurance expenses 207 149

Prepaid rental 514 508

Internal projects in progress 529 -

Other prepaid expenses and accrued income 286 282



34

Note 12 • Change in equity

Share capital

Statu-tory

reserve

Retained earnings

Net profit for the year TOTAL

Opening balance 1,200 266 9,086 1,575 12,127

Adjustment of previous year’s net profit 1,575 -1,575 0

Dividend according to resolution of annual general meeting

-1,000 -1,000

Net profit for the year 1,953 1,953

AmOunT AT yeAr-end 1,200 266 9,661 1,953 13,080

Note 13 • Untaxed reserves

2012 2011

Tax allocation reserve, tax assessment year 2007 - 482

Tax allocation reserve, tax assessment year 2008 1,749 1,749


Tax allocation reserve, tax assessment year 2010 918 918


Tax allocation reserve, tax assessment year 2012 814 814

Tax allocation reserve, tax assessment year 2013 1,090 -

Accumulated excess depreciation 42 -

7,619 6,969

deferred TAx 1,676 1,833

Note 14 • Accrued expenses and deferred income

2012 2011

Accrued project expenses 6,484 6,976

Other accrued liabilities 653 196

Holiday pay liability 947 1,093

Social security contributions 709 726

Special employer’s contribution on pensions 410 518

TOTAL 9,203 9,509

Note 15 • Participations in Group companies

Name/Corporate Identity Number Participation Nominal value Book value

SIPU AB, 556446-3577 60 % 62 238

Note 16 • Investments held as fixed assets

Name/Corporate Identity Number Participation Nominal value Book value

FCG Ukraine LLC, 343428424, Ukraine 10 % 4 3

Note 17 • Pledged assets

2012 2011

Assets pledged for guarantees (Tacso I and II) 19,491 36,887

Floating charges 8,500 8,500

TOTAL 27,991 45,387

Note 18 • Bank overdraft facilitiesUnused bank overdraft facilities amounting to 7 MSEK.

The tax rate for 2012 and 2011 was 26.3%. As of 2013, the tax rate will be 22%.



35

Birgitta BjelkbergAuthorised Public Accountant

Stockholm, 6 March 2013

Anders Olin Ari Kolehmainen Anette Vaini-Antila Katrina Harjuhahto-MadetojaMD Chairman

Our audit report was presented on 9 April 2013Öhrlings PricewaterhouseCoopers AB


36 SIPU International 1992 – 2012

Göran Andersson managing director 1992 – 1994

sipu’s mds oveR the yeaRs

we work with people for people!Thus far you have seen examples of what SIPU does, in Sweden and worldwide; and sometimes how we do it. But it’s a well-known fact that things don’t get done by themselves. A wide range of people have been involved in SIPU’s activities over the last 20 years. This section will switch focus, and not only look at the things SIPU has done; but also high-light some of the people that through their hard work made them happen. We can but give you a few snapshots, but we wish anyway to pre-sent some of the individuals that have helped to make SIPU what it is today.

I became Man-aging Director

when we formed the company back in May 1992. The biggest uncertainty was whether we were going to be al-lowed to take over the contracts we had with Sida. Interestingly enough during this period of privatisation – the government,

through the Ministry of Fi-nance, was completely uninter-ested in what happened to the organisation.

We managed to negotiate good terms with Sida and could take over the contracts that we had at the time. The major projects we had then were in Botswana, ZimbabweandTanzania.Projects

in the Baltics and Asia were on the way. Our contract partners had no objections to us becom-ing a private company.

The transition went so smoothly probably because we knew the business well, we were well prepared both mentally and competence-wise. When I look back at the successful develop-

ment since its inception, I believe that part of this success is due to the fact that we came at a time when management development and »good governance« rose up as key areas of international development cooperation. It suited our profile perfectly.

Partners from the beginning

We had the pleasure of becoming a partner to SIPU International in a series of development programmes and projects starting way back in 1988. And we are still partnering. We have in fact served under all SIPU International’s managing directors, – which has been a great learning experience. It is easy for us to team up with SIPU because we believe we share the same values and guiding principles for sustainable development. We provide complementing services in the fields of capacity development for continuous learning. This includes a range of training and editorial work for effective communication, knowl-edge sharing and bridging the knowing-doing gaps in organisations. Most of our assignments involve human resources and organisa-tional development including leadership and management training.

Bengt-Göran Carlsson, OrdBildarna, a Swedish consultancy company


37SIPU International 1992 – 2012

Bo Synnerholm managing director 1994 – 2003

A lot of political development took

place in the 1990s, the Soviet Union was abolished, South Africa got its first demo-cratic government and a number of new nations were born. This coincided with SIPU International expanding into new countries, areas and issues. We had been working in Mongolia but not in many other Asian countries. An

assignment at the Prime Minister’s office in Thailand was followed by many others for the Thai govern-ment and in many other Asian countries. A large project on hrm inVietnamstartedin1997andcontinued into the mid 2000’s. Our successful cooperation with Mongolia lasted for 20 years.

SIPU was also entrusted to assist the new government in South Africa 1994. Sweden with

its credentials as supporter to the anti-apartheid movement was well received.

But it was not until 1995, when Sweden became member of the European Union that SIPU got its first eu consultancy by assisting the Ministry of Finance in Slovenia with rules and regulations on procurement.

SIPUs first project in Latin America was the development of a

revolving fund »Frama« for coffee farmers in Nicaragua after the dev-astating hurricane »Mitch« in 1998. The same year SIPU developed a Peace Centre for the Municipality of Bethlehem adding the Middle East as an active region.

This was also years when profit allowed the company to recruit and develop new staff, try new ideas and methods.

When I worked in kosovo in the mid-2000s, the government had recently decided to introduce a property tax. The tax was important because it would provide a framework for municipal self-funding. However, it was very difficult to pay the tax and it was unclear how much to pay. It was also quite easy to avoid paying. Each municipality had the responsibility to gather the tax as well, which also complicated matters. Politically speaking, this property tax was highly sensitive because property ownership was strongly associated with the ethnic tensions stemming from the conflict a few years earlier. SIPU’s consultant Finn Hedvall came down and did a study which was quite thick and complicated, but it managed to pin-point exactly how to go about designing Sida support. The Swedish Tax Agency then took this study to build a project around. After only 1 – 2 years revenues from property taxes began to increase rapidly in Kosovo. This income was di-rected towards roads, playgrounds and other municipal services and infrastructure. SIPU did a great job as a »pioneer« in this difficult area.

Robert Backlund was Sida’s Country Coordinator in Kosovo

I have many very fond memories from SIPU. I was given the opportunity to travel quite a bit with senior consultants which was a great learning experience. Finn Hedvall was one of them. Finn worked extremely hard but he had one rule: he would always have one

day off in a week and if it was possible he would go and see some of the surroundings. Another great memory is all the trainings and meetings we had with development partners about pfm and aid efficiency. We helped the participants to see the broader picture; like the importance of institutions and how aid, in worst cases if not implemented carefully, could bypass and even undermine a country’s institutions such as the budget cycle and accountability mechanisms.

Kristin Sinclair, Swedish Ministry of FinanceKirstin worked for SIPU International from 2006 to 2009 as pfm consultant

the number one Project

In the mountains of Sri Lanka there are many Tea Plantation communities. The workers are mostly Tamil people. Between 1980 and 1990, Sida facilitated the building of 520 schools in socially disadvantaged communities. But with no funds al-located by the Singales central government the buildings started to deteriorate. So Sida facilitated a soft loan of 50 million sek to repair the school facilities. SIPU was asked to coordinate and secure the proper use of the granted loan. SIPU sent me and consultant Karl Heli to take on the challenge. At the time Sri Lanka was involved in a civil war and travelling in the rural areas was not safe. In local terms Karl was considered the Enormous Swede and I was the small South-American Swede. First we had to secure the full participation of officials, teachers and community members by an integrated and participative approach concerning school maintenance. And that Tamil schools would have a yearly budget allocation for maintenance works. The combination of Karl’s technical and administrative expertise and my experience in education and construction paid off. The project was soon named The project Number One by the people working at the Swedish Embassy. The impact was big in the Provincial Administrations and also at School level. The Tea Plantation communities started to show signs of housing improvements. Tamil children obtained better school results and for the first time some of them qualified for school bursaries.

The Sri Lanka schools project followed the SIPU motto »We work with people for people«.

Gabriel Marin Castro Senior Consultant at SIPU


39SIPU International 1992 – 2012



sonta kauti – making a difference

When Sonta Kauti attended the 2009 run of

SIPU and Sidas Interna-tional Training programme, Local Environmental Management in Urban Areas; he was working as a solid waste management officer. Being employed by Coppoerbelt Solid Waste Management Co. (HK Kitwe) in Luanshya, Zambia.

One of the problems he encountered on a daily basis was the enormous heaps of wood waste that was accumulated by the forest industry in the region. Adding to this was

another local problem; the villagers where using coal fuelled stoves to cook food indoors, which was not only health hazardous but also a serious environmen-tal problem for the region.

Sonta thought these two problems through, and came up with an idea. He was convinced it was pos-sible to convert the wood waste into pellets. And then use the pellets as fuel for new and cleaner stoves. When the programme was finished he contacted the Swedish Embassy and was eventually able to present his idea to the Swedish com-pany Vagga till vagga AB.

They liked it so much they wanted to invest in the pellet production.

Today Sonta is running a successful pellet produc-ing business and thereby alleviating the municipality of the waste as well as pro-viding the local community with clean fuel.

– Sonta Kautis project effectively combined two existing problems into one sustainable solution. It is a perfect illustration of how a successful project of change really can make a differ-ence, says Cecilia Norgren, Project manager at SIPU.

I joined SIPU in January 2010. My first mission was an evaluation commissioned by Sida, where we went for field visits in Egypt, Jordan and Morocco. I think this was a very good introduction to the consultancy world for me – despite the fact that we were working under some very tight deadlines there was enough knowledge, enthusi-asm and commitment in the team to allow us to deliver the evaluation in time and in line with expectations. This did, however, require that we were working throughout break-fasts, lunches and dinners dur-ing the whole field visit. I still cannot remember this as nega-tive or burdensome, but rather as a very interesting project and fun collaboration …

Having worked at SIPU for more than three years now, I can conclude that this means working in a constantly mov-ing environment where things are happening fast. It means working with clients and col-laborators to meet jointly agreed objectives. It means meeting deadlines and it means ensuring good quality deliverables. In all, it is challenging yet very motivating. Viktoria Hildenwall Business Area Coordinator – Evaluations, at SIPU since 2010

Taking over as managing direc-

tor meant taking over a large and consistent project portfolio. Sida projects dominated, but were in terms of volume gradually replaced by eu and World Bank financed projects.

Sida changed its focus in terms of projects developed and managed from Head Quarters to projects steered from the different Embassies and Sida being more of a co-financier of multilateral projects. During my time as md SIPU adapted to these new scenarios. Putting

emphasis on a professionalised tender organisation whilst keep-ing a strong base of key SIPU consultants.

The owners of SIPU – 12 partners – decided in 2007 that SIPU needed a strong external owner. FCG International became the final choice. My last

year was focussed on steering SIPU International through this process of adapting to financial and administrative procedures applied to all companies within the FCG sphere, to identify and develop commonalities and synergies and finding new business opportunities.

Björn Bengtson managing director 2003 – 2008

SIPU International 1992 – 2012

Two seemingly contradicting

developments have characterised my watch as Managing Director. On the one hand, SIPU International has become more international than ever before by becoming part of an international company

group, and also less dependent on Sida as a client as we have successfully offered our services to other donors. During the same time period, we have be-come more Swedish, or at least more visible in Sweden than we have ever been before, with the acquisition of the Swedish

training business in 2010 and a conscious effort to win contracts for Swedish public agencies. I am very happy with this devel-opment and we will continue to use our Swedish experience strengthen our international business and vice versa. As it happens, I have now

the opportunity to have both the first and the last word in this year’s annual report. I hope that you as a reader has enjoyed it and learnt something new about SIPU. I look forward to hear from you, if you have any questions or comments on the contents, or just to have a chat.

Anders Olin managing director 2008 – today

When Leif Wisén – one of the founders of SIPU International – passed away in 2008 we lost our foremost ideologi-cal partner, a person with a very personal involvement in applying SIPU principles in projects to meet development challenges.

Good Governance includes hard and soft elements. The hard elements like RBM, steering for results, systems development – such aspects are the focus of the skilled technocrats. For them, »good« is qualifying if instru-ments and systems are of good/ high quality.

For Leif, the focus was on making good and being good. Such an approach touches on values, ethics, and standards for service delivery that improve the lives of the poor. Hence, what is the meaning of »Good« and

what are the means to im-prove goodness, what does it mean in various projects and for different people? Leif was people oriented and he was our main proponent for working with people, through people – a leading principle for SIPU and for Leif when he took on his differ-ent projects.To work with people it is essential to be interested and engaged in people. This came natural to him.

To define what is good in the specific project sense requires that all involved share a vision of where to go and what to change – and what it takes to change. Leif had a basket of methodologies

and approaches to drive such a change process. His SIPU room was stacked with books and pamphlets. But methodologies are not enough if the change teams do not believe that the en-gagement is sincere; this was perhaps Leif’s most important contribution. People believed in his sincere engagement to

strive for what is better than today and to engage people in the projects to make change happen. Change for the better needs true commitment.

One must be a good person to

be recognised to sincerely work for the good. Leif was a good person and this is his heritage and contribution to the SIPU values.

Björn Bengtson

Leif Wisén & Good Governance – a colleague to remember

SIPU hascarried out morethan 500 projectsand assignments

in over 100countries since

1992.

SIPU International ABpostal adress Box 45113SE-104 30 Stockholm, Swedenvisitng adress Dalagatan 7e-mail [email protected] +46 (0)8 698 06 00fax +46 (0)8 698 06 10www.sipuinternational.se

sipu annual report 2012

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