LOTFA IV-Project ID: 00052084, Annual Project Report (1386)

United Nations Development ProgrammeAfghanistan

Law and Order Trust Fund for Afghanistan(LOTFA-Phase IV)

(Afghan Calendar1386)01-04-2007 / 31-03-2008

Annual Project Report

Project ID:Duration: Component (MYFF):Total Budget:Unfunded: Implementing

0005208424 Months 2.7 Public Administration Reform and Anti-CorruptionUS 197,965,728None

Partners/Responsible parties

Ministry of Interior & Ministry of Finance

LOTFA Donors

USA

United Kingdom

Germany Canada EC

Finland

Iceland

Italy

Latvia

The Netherlands

Switzerland

Table of Contents

Acronyms...............................................................................................................4Executive Summary...............................................................................................51. Context............................................................................................................72. Performance Review........................................................................................82.1 Progress Review...............................................................................................8Overall progress towards the ANDS benchmark(s).................................................8Overall progress towards the UNDAF outcome......................................................8Overall progress towards the CPAP outcome and output(s)...................................8Capacity Development...........................................................................................9Impact on direct and indirect beneficiaries............................................................92.2 Implementation strategy review......................................................................9Participatory/consultative processes......................................................................9Quality of partnerships.........................................................................................10National Ownership..............................................................................................10Sustainability........................................................................................................102.3 Management effectiveness review.................................................................11Quality of monitoring............................................................................................11Timely delivery of outputs....................................................................................11Resource Allocation..............................................................................................11Cost-effective use of inputs..................................................................................113. Project Results Summary...............................................................................12Output1: Improved integrity, reliability and image of police personnel and force12Output 2: Responsiveness, mobility, and visibility of the police force increased country-wide........................................................................................................12Output 3: Increased efficiency and morale of the police force through improvement of their working and living conditions...................................................................12Output 4: Higher standards, a more competent and representative police force, promoted..............................................................................................................12Output 5: The police force and the activities are better supported by the MoI....154. Implementation Issues...................................................................................185. Lessons Learnt and Next Steps......................................................................185.1.Lessons learnt and Recommendations...........................................................186. Financial Status and utilisation.........................................................................206.1 Financial Status..............................................................................................206.2 Financial Utilisation........................................................................................22

AnnexesAnnex 1: Annual Work Plan

AcronymsAIAF Afghanistan Interim Authority FundANCOP Afghan National Community Order PoliceANDS Afghanistan National Development StrategyANP Afghan National PoliceANAP Afghan National Auxiliary PoliceCPAP Country Programme Action PlanCSTC-A Combine Security Transition Command – AfghanistanEFT Electronic Fund TransferEPS Electronic Payroll SystemFRU Family Response UnitFY Fiscal YearGMS General Management SupportHQs Head QuartersJCMB Joint Coordination and Monitoring BoardLOTFA Law and Order Trust Fund for AfghanistanMoI Ministry of InteriorMoF Ministry of FinanceMYFF Multi Year Funding FrameworkSDC Swiss Agency for Development and CooperationUNAMA United Nations Assistance Mission to AfghanistanUNDP United Nations Development Programme

Executive SummaryRebuilding the national civilian police force for national security and recovery represents one of Afghan Government’s highest priorities. The Afghanistan National Development Strategy (ANDS) envisions a professional, disciplined and reinvigorated police force that is responsible and loyal to MoI, widely visible to and respected by the public, and capable of protecting rights, insurgency and drug trafficking.

International community’s support for rebuilding the Afghan police force started from the beginning of the establishment of the Afghan Interim Government in 2002, as stipulated by the Bonn Agreement. In May 2002, at the request of the Government and United Nations Assistance Mission to Afghanistan (UNAMA), United Nations Development Programme (UNDP) established a Law and Order Trust Fund for Afghanistan (LOTFA) to enable the police to return to operation throughout the country. The current phase of the project i.e. phase IV was commenced on 01 April 2006 for two years. Police remuneration is the first priority activity of the project. During Fiscal Year (FY) 1386 (01 April 2007—31 March 2008) LOTFA continued to pay salaries of over 78,000 Afghanistan National Police (ANP) in all 34 provinces of Afghanistan on a regular basis. During the reporting period, LOTFA transferred a total of 140.8 million to the Ministry of Finance (MoF). Regular payment of police has ensured a functioning police on the ground. At the same time, the government and the international community recognizes that the efforts on accountability and transparency, in regard to the disbursement of police salaries in provinces, need to be significantly strengthened.

Implementation of Electronic Payroll System (EPS) showed considerable progress during the reporting period. EPS has now been deployed in 33 provinces of Afghanistan out of which 28 provinces have been delivering electronic payroll reports to MoI at the center. In addition, the system was also installed in 65 locations at various departments of MoI and police stations of Kabul.

During the year, 160 staff members of MoI and Kabul police were trained in computerization of payroll and personnel data entry. Individual Payment, using Electronic Fund Transfer (EFT), with a full support of EPS was introduced in MoI. As a result, 28,407police officers received their salaries through payments to individual bank accounts i.e. EFT.

The implementation of the support to Gender Mainstreaming at MoI was also one of the major activities of LOTFA. A total of 182 new female joined police during the year as a result of campaigns for female recruitment in police force. In addition, Gender Mainstreaming Unit was established in MoI and three women were deployed in the unit. Both on the job and theoretical trainings were conducted for capacity development of Gender Mainstreaming Unit. Moreover, due to support of LOTFA, the Family Response Unit (FRU) has become operational in Kabul Provincial Police HQs.

Monitoring missions were conducted to the provinces selected randomly. The Joint monitoring missions including representatives of MoI, UNDP, and LOTFA visited 10 provinces to ensure proper accountability and transparency of expenditures at the provincial level. Findings of LOTFA missions were shared with the National Director as well as reported to the project Steering Committee (SC).

As LOTFA Phase IV was to be completed in March 2008, the consultation on phase V was initiated and draft project document was developed and shared with LOTFA donors for their feedback. The donors, following series of discussions and communications, provided their feedback and comments.

While there is progress, there are implementation challenges with regard to predictability of resources in the Trust fund. Last year, funding shortfall resulted in delays in disbursements to MoF. The need for predictable and sustainable funds for payment of police salaries cannot be overemphasized.

Insufficient ownership of the process by MoI undermines the sustainability of results and increase dependency of the national institution on external support. In particular, the project faced reluctance of the provincial police HQs to utilize EPS for generating police payroll. In addition, some of the police officers trained in EPS were relocated from their duty stations. These factors resulted in MoI continue to manually process police payroll. Following the LOTFA request, MoI senior management sent orders to the provincial police requesting them to apply EPS to generate police payroll. This resulted in increased efforts for utilization of EPS at provincial level.

1. Context

Afghanistan is a country where war has affected all sectors, including infrastructure, education, police, military and agriculture during the last two decades, which caused tremendous loss to the economy of the country. It is evident that Afghanistan urgently needs extensive rehabilitation and reconstruction, but to fill this gap a safe environment is an essential prerequisite. The re-establishment of a national civilian police force is an essential element for security and the rule of law in Afghanistan.

The threats to Afghanistan’s security and stability are numerous and include terrorist/insurgent attacks, availability of weapons with armed militia groups, trade of weapons, narcotics and violation of human rights, with the result that the re-establishment of law and order becomes more difficult. Maintaining law and order in the country is primarily the responsibility of the national police force. Despite the need for a strong and well equipped police force, currently the national police personnel operate under severe constraints due in part to limited human and material resources. The ANP has expanded due to the growing insecurity but the quality of the police remains in question. Joint Coordination and Monitoring Body (JCMB) has underlined that without an improvement in the security situation, disaffected parts of the Afghan population can become a fertile source of new anti-government recruits. Insecurity, particularly in the South and South-East of the country, prevents sustainable development and diverts attention and resources from comprehensive security sector reform.

International community’s support to rebuild Afghan police force started from the beginning of establishment of Afghan Interim Government in 2002 as envisaged by the Bonn Agreement. Donors’ resources covered the salaries of police in Kabul for the first six months of 2002 through the UNDP managed Afghanistan Interim Authority Fund (AIAF). In May 2002, at the request of Afghan Government and UNAMA, UNDP established LOTFA to enable the police to return to operation throughout the country. The Trust Fund has provided a mechanism for

accumulating contributions from many donors with the principle purpose to cover police salaries.

LOTFA since its establishment has been implemented in phases approved for a particular period of time. Current phase of LOTFA was started on 01 April 2006 for a period of two years till 31 March 2008. Hence, phase IV of the project was completed by the end of 1386 (31 March 2008). LOTFA is nationally managed through the Ministry of Interior. LOTFA is an instrument envisaged to cover Government’s police-related costs and undertake project activities in the following order of priorities:

1) Remuneration and payment of police;2) Procurement, operations and maintenance of non-lethal police equipment;3) Rehabilitation, reconstruction, operations and maintenance of police facilities;4) Gender orientation (selection, recruitment and training of police); and 5) Institutional development.

The ANDS clearly points out that Afghanistan still faces a number of serious challenges before it can assume full responsibility for its own security. LOTFA has made significant contribution in building the ANP and ANDS has underlined the need for ANP to enforce rule of law on a country wide basis.

LOTFA has supported United Nations Development Assistance Framework (UNDAF) through improving the presence of police force contributing towards better security which is an essential pre-requisite for the achievement of development goals outlined in UNDAF.

Regular payment of salaries of ANP and support to institution building has helped to achieve the CPAP outcome and especially the output on law and order i.e. “Law and order institutions at national and sub-national levels strengthened and security of the population improved”.

There are, however, development challenges which remain. These include predictable funds for LOTFA, greater ownership of security sector reforms by the government and international community, prioritization of institutional building of police, increase in transparency and accountability in disbursements, financial management and procurement processes.

Helping to promote national security trough LOTFA is one of the priorities set forth in the UNDP Administrator’s Note to the Executive Board “UNDP Assistance to Afghanistan 2004-2007”. LOTFA continued to receive donor contributions during FY1386 as well. The donors that contributed to the fund were the European Commission (EC), the United States of America (USA), the United Kingdom (UK), Canada, the Netherlands, Germany, Switzerland, Finland, Iceland, Latvia and Italy and are key stakeholders in providing strategic direction to LOTFA.

2. Performance Review

2.1 Progress Review LOTFA continued to support MoI during FY 1386 to ensure that it is able to meet its costs agreed to be provided via the Trust Fund. Visible progress towards different

development outcomes was made. An overview of the performance and progress is provided below:

Overall progress towards the ANDS benchmark(s)The expected results from LOTFA were pursued in line with the security sector of ANDS with a focus on the bench mark “By end-2010, a fully constituted, professional, functional and ethnically balanced Afghan National Police and Afghan Border Police with a combined force of up to 62,000 (increased to 82,180 by JCMB) will be able to meet the security needs of the country effectively and will be increasingly fiscally sustainable”.

Even though security sector reform is beyond the scope of LOTFA the project has been contributing to this by supporting the pay and rank reform process. Through a consultative process with the government, donors and international community various reform issues affecting police have been taken up. In addition, support to women recruitment in police and payment of incentives to them during training has resulted in inclusion of women in police force. Moreover, implementation of electronic payroll system, training on utilization of the system as well as support on financial management has resulted in greater improvement in the performance of police departments.

Overall progress towards the UNDAF outcomeLOTFA contributed to the outcome 2 of UNDAF i.e. “By 2008, an effective more accountable and more representative public administration is established at the national and sub-national levels, with improved delivery of services in an equitable, efficient and effective manner (area of cooperation Governance, rule of law and human rights)”. There has been progress in regard to accountability of MoI as it has established EPS for tracking and reliable reporting on salaries paid to the police.

Overall progress towards the CPAP outcome and output(s)LOTFA made continuous progress towards relevant outcome and output of Country Porgramme Action Plan of UNDP. The Trust Fund contributes towards outcome number 2 of the plan that states “the democratic state and government institutions strengthened at all levels to govern and ensure quality public services through advocacy, policy advice and capacity development” and output number 2.2 i.e. Law and order institutions at national and sub-national levels strengthened and security of the population improved.

The activities of the project are aligned and resources have been applied towards the output of CPAP. The project continued to support the payment of remuneration of police on timely basis to ensure that there is functioning police on the ground. In addition, improvement in system of payment of salaries to police was also sought through implementation of EPS and EFT so that transparency and accountability in the payment of police salaries could be improved. Furthermore, MoI was supported in recruitment of female police to enhance gender balance.

Capacity DevelopmentCapacity building is the corner stone of sustainable development. LOTFA, therefore, focused on capacity development activities. The MoI responsible for ensuring internal security is the National Implementing Partner of LOTFA whose capacity to manage LOTFA in 1386 was improved especially in terms of financial management and monitoring. As part of the implementation of EPS, both on the job and theoretical trainings were provided to MoI staff. It resulted in operationlization of the system in 28 provinces and center.

Support to Gender Mainstreaming Unit (GMU) continued through out the reporting period. Apart from theoretical trainings, Gender unit staff was involved in practical session planning and participation in seminars, trainings and workshops. The staff members of GMU were continuously supported to actively participate in different gender related forums. There has been a visible improvement in the capacity of GMU staff in utilization of computer applications. In addition, they are more active in their participation in gender forums they participate in.

Impact on direct and indirect beneficiaries The project’s direct beneficiaries are ANP officers and personnel, who benefit from the timely and accountable payment of salaries and provision of food allowance apart from investment in their capacities and construction of police facilities. Capacity of MoI, as a direct beneficiary, has also improved to pay remuneration of uniformed personnel on timely basis.

The establishment of GMU in MoI was also an important achievement for MoI. The Ministry needed support in regard to Gender Mainstreaming. LOTFA not only supported the establishment of GMU but also provided capacity development opportunities for the staff of the unit. On the other hand, much needed female recruitment was accelerated by LOTFA. Apart from the impact on direct beneficiaries, Afghan nation, as indirect beneficiaries benefited from improved law and order situation. Particularly, women benefited from presence of female police. With new recruits, Afghan women will have a reliable source within the police structure to refer to whenever needed.

2.2 Implementation strategy review

Participatory/consultative processesTo ensure co-ordination among the main stakeholders and effective, efficient and transparent utilization of the inputs made available to the project, project Steering Committee (SC) was established. The SC, which meets quarterly, is chaired by the MoI, with representation from MoF, UNAMA, UNDP and all LOTFA donors. The SC is a group responsible for making executive management decisions for the project when guidance is required by the Project Manager (PM), including approval of project revisions. The SC guided and oversaw the project implementation, approved administrative procedures and operational strategy and standards, defined roles and responsibilities of the various partners, and ensured broad participation and transparency in decision-making. Project assurance reviews by this group were made at designated decision points during the course of the year. During 1386 four SC meetings were held. The participation of the LOTFA donors has been critical in providing strategic direction to LOTFA where important issues regarding monitoring at provincial level, recruitment of an independent Monitoring Agent (MA), EPS and EFT implementation, transparency and accountability in payment of police salaries, shortage of funds have been raised. In order to resolve issues, small group meetings of key LOTFA donors were held to reach conclusions. Secondly, important decisions on back-pay for ANP, severance pay, ANP food allowance parity, establishment of DIAG cell and payment of uniformed personnel of Central Prison Department were made.

During the reporting period, the consultation process for phase V of LOTFA was initiated. All donors actively contributed to the development of project strategy.

Quality of partnerships The project collaborated with other donors’ initiatives being implemented at MoI so that synergies are formed and as such the effectiveness is improved. Partnership between the government and international community supporting LOTFA has been strengthened through effective consultation resulting in exchange of ideas in key LOTFA areas. Over the last two years, MoI supported by the international community vigorously worked on the reform of ANP. LOTFA also played an active role in the process and remained in close coordination with UNAMA, donors and all other involved stakeholders. The restructuring of MoI includes significant changes to the current pay and rank structure of the police. The pay and rank reform process was completed in 1386.

Collaboration with UNAMA was improved through coordinating on several issues concerning security sector with a bearing on LOTFA activities including International Police Coordination Board (IPCB) review of police reforms and envisaged evaluation of phase IV of LOTFA.

The MoF acts as an implementing partner for the purpose of reimbursement of National Budget expenditures and the individualized payment to police personnel. Police salaries are paid by the Treasury Department of MoF in accordance with the Afghanistan Government financial procedures. Upon receiving and reviewing the Quarterly Financial Report and Quarterly Financial Forecast, UNDP releases the required advance into the appropriate bank account indicated by the Treasury Department of MoF. The Treasury Department of MoF processes and accounts for these funds vis-à-vis the Government budget, and releases funds to the Ministry of Interior accordingly. Closer coordination with MoF ensured that police around the country were remunerated on timely basis.

National OwnershipUnder National Implementation Modality (NIM), the Islamic Republic of Afghanistan retains overall responsibility for LOTFA through its designated institutions i.e. MoI and MoF. The Implementing Agency (MoI) is therefore responsible for the overall achievements of the results, and the full involvement of the relevant departments in the project activities. Hence, MoI remains the paramount decision making body and makes decisions in consultation with SC.

During reporting period, extensive discussions were held on conduct of the police reform issues with a bearing on LOTFA funding. Government of Afghanistan was in the lead of these discussions where the Government presented the background papers in consultation with International Community. LOTFA Management Support Unit (MSU) was involved in the preparation of the Annual Work Plan (AWP) for LOTFA. The Government, with UNDP, has been leading the joint monitoring visits to the provinces.

SustainabilityLOTFA was intended to fund recurrent costs of MoI during the transition and consolidation period, with this coverage ceasing when domestic revenue is able to recover the cost. The Bonn agreement foresees the “return to normality” occurring during the period 2006-2011. The Afghanistan Compact envisages that the transformation of Afghan National and Border Police into a fully constituted, professional, functional, ethnically balanced and increasingly fiscally sustainable force will be completed by 2010. However, as the Government of Afghanistan does not have the ability to cover core remuneration costs for ANP from its revenue sources, LOTFA would continue to support MoI till Afghan Government is able to

meet the cost from its internal revenue. The discussion on phasing out of food allowance was initiated in SC meetings held during the reporting period. The phase V of LOTFA will utilize the LOTFA SC forum for initiating discussion between the Government of Afghanistan and donors and determine a time frame for gradual phasing out of reimbursement of police salaries. Good progress was made in institutionalization of certain processes and systems as seen with regard to financial management and Gender Mainstreaming. Regular trainings and support resulted in increased improvement of EPS as electronic payrolls were regularly produced. Moreover, support to Gender Mainstreaming unit has resulted in visibility of the unit with the Ministry as well as to external sources. Continued support to the unit over the next phase of the project would result in sustainability of GMU. Furthermore, enhanced capacity of EPS operators would ensure that the system would remain operational even after the phasing out of LOTFA.

2.3 Management effectiveness review

Quality of monitoringUNDP monitored the project in line with its Results Based Management (RBM) principles on a regular basis to oversee the quality, quantity and timeliness of progress towards delivering intended results and benchmarks identified in the Results and Resource Framework and Annual Work Plan.

All project implementation issues were recorded in the progress reports and critical issues were brought to the attention of the SC members by LOTFA PM on a regular basis. Quarterly progress reports were submitted by the PM to UNDP for Project Assurance and to project SC.  This annual project report was also produced with more focus on the extent to which progress is being made towards results. Field monitoring has been an essential part of LOTFA. During the reporting period, joint monitoring missions by MoI, UNDP and LOTFA were conducted to 10 provinces that include Kabul, Nangarhar, Bamyan, Balkh, Takhar, Kunduz, Samangan, Panjshir, Parwan and Kapisa. The findings and recommendations of the monitoring missions were recorded in monitoring mission reports and major findings were shared with the National Director for further follow up. Findings were also reported to the SC and discussed extensively by the LOTFA stakeholders. Some of issues regarding effective implementation of EPS were taken up.

In order to address the need of more in depth monitoring and support to financial management and accountability practices until capacity of the MoI is built in these areas, recruitment of an independent MA was proposed by UNDP and the international community. Extensive discussions were conducted around the issue that resulted in agreement of all donors to the deployment of MA. The independent MA is planned to be recruited during phase V of LOTFA.

Timely delivery of outputsThe project’s intended outputs are in line with the five priorities of LOTFA as outlined in the “Context” part of the report. All project activities proceeded in accordance with the annual work plan and as such, delivery of outputs was timely. However, intended progress on construction work of police gymnasium could not be made and the progress was hampered by severe weather conditions. The construction work is intended to be completed during year 1387. There was also delay in establishment of the GMU in MoI which was subsequently achieved.

Resource AllocationDuring the year 1386, total expenditure of LOTFA was USD 146,411,833. Of the spent amount, 429,705 were spent towards administrative support cost of the project. The analysis of development activities cost and project management cost reveals that only 0.29% of the total expenditure was spent on project management. Hence, the operating cost of the project remained very low. Cost-effective use of inputsThe available inputs – staff, transport, equipment, etc- have been used in a highly efficient manner, as shown in the constant rate of expenditure. It is important to note that the number of internationals was limited in the project and national capacities were utilized. Hence, inputs were utilized in the best possible manner.

3. Project Results Summary

Output1: Improved integrity, reliability and image of police personnel and forceThe first priority of LOTFA is reimbursement of remuneration of ANP to the MoF. The expenditure eligible for remuneration comprises salaries in cash and payments for the provision of food for police (salaries in kind). The actual payment of police remuneration took place through the regular government payroll and non-salary payment system. The funds were channelled to provinces by the Treasury Department of MoF.  The amount eligible for reimbursement was based on the actual expenditure derived from the Afghanistan Financial Management Information System (AFMIS) maintained by MoF, which was verified by the LOTFA MSU.  During FY1386, the combined expenditure for police salaries and food allowance totalled USD140,861,968 .

During the reporting period, a mechanism for verification of payment of salaries established. The process was commenced towards the latter part of the year in which the provincial financial reports of MoI is cross checked with EPS reports and data generated by Afghanistan Financial Management Information System (AFMIS) of MoF. This has resulted in greater transparency and accountability in the payment of police salaries.

The monitoring missions, during visits to provinces, focused whether the salaries were released on timely basis. It was found that salaries were paid on timely basis which resulted in greater confidence of police force Government of Afghanistan.

It is important to note that the international community has raised concerns in regard to payment to police on the ground and a decision was taken to recruit an independent MA. The MA would monitor and review disbursements and payment of police salaries and food allowance, accounting systems and reporting for LOTFA activities. The MA will carry out physical verification of the personnel on payroll.

Output 2: Responsiveness, mobility, and visibility of the police force increased country-wideProgress remained restricted on this activity due to lack of funding availability for the priority. In June 2007, LOTFA SC approved the procurement of one armored vehicle for the MoI Chief of Staff, who was also performing duties of LOTFA National Director. The Presidential approval for the procurement was also received and following the bidding process, the contract was awarded to an Afghan company. The vehicle was delivered in December 2007 and handed over to MoI.

Output 3: Increased efficiency and morale of the police force through improvement of their working and living conditionsMoI has designated a site for the construction of police sports facilities at the Central Region Command Centre (CRCC).  The facility will be used to improve the physical conditions of police force. The feasibility study of the facility has already been completed. The tender for the construction will soon be announced so that construction work of the facility is commenced. In addition, LOTFA renovated a two-storey building at the MoI compound. The building is renovated to accommodate EPS computer training centre with the capacity of 15 computer training stations. The building also accommodated LOTFA MSU. It is also expected that the MoI female staff involved in Gender Mainstreaming will be relocated to these premises.

Output 4: Higher standards, a more competent and representative police force, promotedThis component is funded by the Swiss Agency for Development and Cooperation (SDC) and was expected to achieve the flowing outputs:

Recruit 300 women into the Afghan National Police in 2 years; Establish a gender unit in the MOI within the recently established Human

Rights Department; Create a gender statistical system for planning and evaluation purposes; Assist in replicating the pilot Family Response Unit already in existence in

District 10, Kabul, and 5 FRUs in five provinces (regional centres);

It is also expected that this project will improve access to justice for female victims of violence.

Recruitment Campaign Recruitment campaign focuses on recruitment of women in police. Drafting of a Women recruitment strategy was one of the major achievements of the activity. The strategy was an effort to persuade women join police force and contained three main work streams namely (i) formation of two active national female police recruitment teams (ii) a recruitment campaign action plan (iii) payment of incentives to female recruits during training period.

As part of the recruitment campaign, identification of 18 provinces for women recruitment was made in consultation with MoI officials. The criteria for selection of provinces were based on security situation of the province and potential for identification of women for recruitment.

Media was used as a main tool for women recruitment. Two TV spots of about one minute duration in Pashto and Dari languages were developed that were regularly telecasted by four private local television channels. In addition, a tour film of National Police Academy in Kabul having duration of 15 minutes, focusing on female police, was also developed and telecasted. Moreover, a documentary film of 25 minutes portraying five female police working on different police ranks and comments of women parliamentarians about them was also developed.

In addition to electronic media, print media was utilized for the purpose of women recruitment. Materials containing flip charts, brochures, billboards and stickers were developed and distributed among masses for their persuasion to join police

force. In addition, a telephone info-line was established to provide women with information on the process of joining police force.

Recruitment campaign and telephone info line were successful and found major success components of the project. The campaigning for women recruitment in police resulted in recruitment of 182 women in police during the year. In addition, 40 women were registered through info line for different police rank trainings.

Table 1: Statistical Overview of Female Police New Recruits 1386

13861385RankLocation

088OfficerBorder Police5116Sergeant11110Solder110OfficerReserve-101Sergeant000Solder14039OfficerCentral Ministry113524Sergeant220Solder000OfficerCentral Battalion 297Sergeant110Solder000OfficerIn copes000Sergeant000Solder044OfficerStandby Police-16016Sergeant000Solder-101OfficerHighway Police000Sergeant000Solder4-1317OfficerCentral Region Police

H.Q 176750Sergeant11121Solder1-45OfficerKandahar Regional

Police H.Q 9134Sergeant396Solder044OfficerHerat Regional Police

H.Q 15194Sergeant47470Solder1-1415OfficerNorthern Region

Police H.Q 374710Sergeant294718Solder000OfficerGardiz Regional Police

H.Q 011Sergeant440Solder182423241Grand Total

As above table indicates, during year 1386 a total of 182 female were hired in police. The breakdown of the new recruits reveals that 7 of the total are officer cadets, 96 are sergeants and 79 are patrolwomen. These recruits have increased the total number of women in police to 423 from 241.

A total of Afs 831,472 (USD 16,629) was paid to 89 women during the year. The incentives of recruits who are under training are paid by this component. The women, who are deployed directly on duty, are paid through monthly payroll as part of police remuneration.

Gender MainstreamingGender Mainstreaming activity of LOTFA also remained in progress as other project activities during the year. A GMU was established within structure of MoI and office space was allocated for the unit. LOTFA Gender team assisted MoI in developing an action plan for Gender Mainstreaming, roles and responsibilities as well as terms of reference development for key positions in GMU. Implementation of Gender Mainstreaming process commenced during the year. Gender Mainstreaming awareness raising material for MoI has been developed. Moreover, preparation of an awareness raising workshop for MoI headquarters has begun.

As mentioned above, a GMU was established in MoI. Two female officers were appointed within the Human Rights Department to oversee Gender Mainstreaming issues at the Ministry. As part of capacity development efforts, LOTFA has started building the capacity of two deployed staff members in Gender Mainstreaming, languages and computer skills through regular classes and on-the-job training. Besides, staff of GMU of MoI was trained on Convention on elimination discrimination against women. United Nations Security Counsel Resolution 1325, mentoring skills, research skills and methodologies, guidance on planning and complaints resolution, problem solving skills, leadership skills, communications skills, gender budgeting, and gender rights and harassment policies.

In addition to the above trainings, MoI Gender Mainstreaming staff members were helped to participate in international Islamic police women conference, AREU Gender mainstreaming seminar, regular gender focal points meeting at Ministry of Women’s Affair and Gender Budgeting Training (Hyderabad- India).

LOTFA Gender Mainstreaming team, in addition to capacity development, assisted the MoI GMU in undertaking a review of issues facing female personnel and police working at MoI. The results of the assessment will be submitted to the Minister/ First Deputy Minister of MoI so that the problems could be resolved.

Gender Mainstreaming issues were also supported to be published in regular MoI publications. Following lobbying from LOTFA Gender team, the MoI public relations office allocated a portion of the monthly police magazine for the subjects related to gender mainstreaming. Consequently, police force, via the monthly magazine, regularly receives gender related information.

LOTFA gender team also provided logistical and administration support to the first International Islamic Police Women Conference which was organized from 21 October to 25 October 2007.

Support to the Family Response Units (FRU) is also part of Gender Mainstreaming Activities. There are 12 functioning Family Response Units in Kabul and 10 in different Provinces. LOTFA provided logistic support to a number of FRUs. The FRUs that received logistic support included Kabul, Kunduz, Mazar, Herat and Jalalabad. In

addition, LOTFA funded renovation of FRUs at Kabul and police Headquarters and police stations in districts.

Output 5: The police force and the activities are better supported by the MoI

This priority includes two major activities:

a) Management Support Unit;b) Electronic Payroll System

a) Management Support Unit LOTFA MSU is established to support MoI in implementation of LOTFA. Four national finance specialists were recruited to provide assistance to the MoI financial staff both in the centre and provinces in improving the system of budgeting, accounting, cash management, payment processing and addressing other issues of financial management. They also provided on-the-job training on financial, budgeting and accounting procedures as well as promoted and improved computer literacy of the MoI staff.

In addition, MSU also supported LOTFA National Director and Mol in management and implementation of project activities. All project activities were facilitated by the unit that resulted in timely implementation of project activities.

b) Electronic Payroll System (EPS) International Community has been monitoring deficiencies in the process of salary payments of police working for MoI. This has resulted in initiating EPS to meet the challenges regarding policy development and implementation of payroll for police, aimed at reducing the length of salary distribution process.

The EPS, financially supported by the SDC, is a significant activity towards the support of LOTFA Project. The objective of EPS is to ensure timely and accurate police salary payment to the legitimate staff, through sustainable cost effective payroll payment procedures. EPS implementation involves EPS training, EPS installation and implementation of Electronic Funds Transfer (EFT). An overview of each sub-activity is provided below:

(i) EPS Training: EPS training contained both theoretical and on the job training for MoI staff. During the reporting period, 32 finance officers and computer operators of Afghanistan Border Police were trained during a 20 days workshop covering basic computer skills and EPS. Five finance officers of Afghanistan National Community Order Police (ANCOP) attended a 10-day EPS and basic computer training course. LOTFA also conducted a 10 days training for 11 police officers (1 from Kandahar and 1 from Nooristan province, 3 from Counter Narcotics Brigade, 3 From MoI Transportation Brigade and 3 from UN Protections Police Department). The last three departments have just come under MoI payroll.

LOTFA also conducted a comprehensive two-day workshop for 101 provincial finance officers that resulted in the coverage and receipt of electronic payroll reports from 30 provinces. In addition, LOTFA EPS staff conducted one day training for 32 DynCorp mentors in two sessions. The purpose of the training was to help the mentors assist the police departments to forward the reports in timely manner to headquarters.

The EPS operators were provided with on-the-job training during installation and updating missions. On ad hoc basis, training and technical support was also provided to EPS operators as required.

(ii) Installation: In addition to training, implementation of EPS was also conducted during the year. The system has already been successfully installed in 33 provinces. In addition, it has been installed in 65 locations at MoI departments, Kabul city police stations and police stations of Kabul province. EPS was implemented in 33 new stations and it reached to 115 stations nationwide, covering all MoI.

LOTFA also provides IT equipment and required office furniture for EPS operation. Below are the items that were distributed to different MoI finance departments both in center and provinces.

Table 2: IT Equipments S/N Item Name Unit Distributed Qty1 Dell Optiplex Branded Latest Version Computer

(CPU, Monitor, Mouse, Key Board)Set 96

2 UPS 1000 Watt Set 973 Printer HP 1320 Set 984 USB Flash Drive at least 256 MB Set 1835 Power Generator Honda Elemax 7000 Set 196 Copier Machine Toshiba 2860 or 1560 or Canon

7161Set 18

7 Computer Desk PCs 428 Revolving Chair PCs 429 Motorized Power Stabilized 2000 Watt PCs 9610 Power Extensions PCs 14511 Generator Power Extensions Cables Meter 35012 A4 White Paper for printers Ream 1500

Table 3: Office Furniture and related items S# Items Unit Kabul Kundoz Maza

rHera

tJalalaba

dTota

l1 Office Desk Two 6 6 4 4 2 222 Office Chair Two 6 6 4 4 2 223 Cell Phone One 3 3 2 2 1 114 Desktop

ComputerTwo 6 6 4 4 2 22

5 Printer Two 6 6 4 4 2 226 Paper Shredder One 3 3 2 2 1 117 Sofas One 3 3 2 2 1 118 File Cabinets Two 3 3 2 2 1 119 File Cabinets Two 3 3 2 2 1 1110 Digital Camera One 2 211 Telephone 3 3 2 2 1 1112 Memory Sticks

512 MBTwo 6 6 4 4 2 22

13 Video Projector 2 214 Video Camera 2 215 UPS

(uninterrupted power supply)

6 6 4 4 2 22

S# Items Unit Kabul Kundoz Mazar

Herat

Jalalabad

Total

16 Stabilizers Two 6 6 4 4 2 2217 Heater

(Gas/Electric)3 3 2 2 1 11

18 File Chart 3 3 2 2 1 1119 Laptop Computer 2 220 Screen 2 221 Software Win XP 2 2

Some of the implementation challenges faced in the EPS operation include reluctance of the provincial police HQs to utilize EPS for generating police payrolls. Further, some of the police officers trained in EPS were relocated from their duty stations. These issues were taken up in SC meetings and communicated to MoI. The involvement of senior official of MoI resulted in utilization of the system. while the progress was slow, improvements were observed as provinces started sending their reports to MoI.

(iii) Electronic Funds Transfer (EFT): The process of paying police officers through EFT, and payment of salaries through Pay by the List (PBL) from Da Afghanistan Bank (DAB) is a joint initiative of MoI, MoF, CSTC-A, MoI ID Cards Project, Kabul Bank and LOTFA. EFT ensures that police force receive their salaries in their personal bank account. However, in the areas where commercial banks are not functional, the salaries are paid to individuals by DAB directly.

The EPS team plays leading role in EFT process at MoI. Its responsibilities include:

Production of monthly payroll of police via EPS; Producing monthly bank reports to credit the individual accounts; Provision of data to commercial banks for establishment of individual bank

accounts and implementation of EFT; Registration of police officers for bank account opening; Collection of police data (personal information, photo and signature) from

DynCorp ID card project based on the registered police IDs, and provision of it to commercial bank for account opening.

By the end of the FY 1386, a total of 82 stations (in 17 provinces) came under EFT system resulting in 28,407 uniformed police being paid their salaries through EFT to their individual bank accounts opened in the commercial banks after the verification of police through IDs and registration numbers.

Table 4: Details of Bank Accounts

S/N LocationNumber of Police Enrolled in EFT

1 Kabul(65) Payroll stations 139662 Border Police (HQ, KIA, Brigade 1,

Brigade 2 and Brigade 7)1934

3 Balkh 13104 Hirat 26015 Nangarhar 23706 Parwan 11107 Baghlan 6158 Kunduz 892

S/N LocationNumber of Police Enrolled in EFT

9 Takhar 35510 Kandahar 18111 Badakhshan 16012 Khost 89213 Kunar 30214 Jawzjan 24215 Faryab 45716 Bamyan 16617 Ghazni 11818 Laghman 736Total 28407

4. Implementation Issues

Although, there have not been major issues that could hamper progress of the project, some issues remained areas of concern. While 12 countries provided funding to LOTFA IV, the fund is still heavily dependant on the two major donors, namely the EC and the United States. The project experienced funding shortage during third quarter and managed to secure sufficient funding to cover police remuneration in 1386 FY only due to the additional (US $40 million) contribution from the United States. The issue of shortfall was regularly shared with the donors via formal letter as well as in SC meetings. The need for predictable and sustainable fund for police salaries and other priorities is critical for smooth operation.

Delays in implementation of EPS also remained an issue that was regularly discussed with Mol. The delays mainly occurred due to volatile security situation in some of the provinces, making it difficult for LOTFA staff to approach the provinces and help operationlization of EPS. In addition, in some of the provinces, EPS operators were transferred to other positions. However, MoI demonstrated increased sense of ownership of EPS and made efforts to make it functional in all provinces. New EPS operators are going to be trained so that the vacuum created by lack of EPS operators could be filled.

The issue of payment of physical serving police has been raised as a concern by the international community. In order to address the concern, an independent Monitoring Agent is planned to be recruited in phase V of LOTFA. This would ensure extended field monitoring and physical verification.

As different stakeholders were involved in Gender Mainstreaming process in MoI, LOTFA was initially unable to proceed and conduct its activities as per its work plan. However, LOTFA gender team started coordinating with all stakeholders that resulted in establishment of more synergies and as such resulted in smooth implementation of LOTFA activities.

5. Lessons Learnt and Next Steps

5.1. Lessons learnt and Recommendations

LOTFA has proven to be an efficient mechanism for accumulating donor contributions and channeling them to police. It is in line with the Paris Declaration on aid effectiveness. The Trust Fund arrangement enabled the Government to mobilize financial resources and helped in better management of pooled resources from multiple donors where the Government participates. The Fund is strategically positioned to play a vital role in achieving benchmarks and targets promulgated both in ANDS and Afghanistan Compact. In particular, LOTFA is crucial for expediting implementation of police reform and addressing the issue of gender mainstreaming in the police force. At this stage, the Government of Afghanistan does not have the ability to cover core remuneration costs for ANP from its revenue sources. Therefore, the continuous, increased donor funding of police through LOTFA is a vital element in ensuring the continued operation of national police. Insufficient donor funding support might make it difficult to achieve LOTFA objectives, outputs and outcomes.

Continued collaboration should be conducted with all donors and they should regularly be informed about the funding status of LOTFA so that timely contributions could be ensured. Moreover, MoI should be supported to address the concerns of donors.

It was learnt during the year that involvement of senior management of MoI increases the sense of ownership of a process at different levels of hierarchy. The implementation of EPS was faced with delays and officials at provincial level were reluctant to implement the system. LOTFA MSU, as a remedial action, fully involved MoI senior management in implementation of the system. The follow up of the implementation of EPS was led by His Excellency MoI Minister resulting in gradual improvement in functionalizing of the system. The approach would be followed in future as well so that the system is fully functional and pay reports are produced on a regular basis.

MoI and MoF needs to take greater leadership in pursuing reform and addressing issue of transparency and accountability as it has implications for contributions to LOTFA by donors. At the same time, the international community needs to proactively engage in the police reform process.

Greater priority must be accorded to institutional development and capacity building in the MoI. This issue is now prioritized in phase V of LOTFA.

Clear benchmarks are needed to capture the measurable results under LOTFA as well as increase in overall transparency and accountability should be underlined.

The need to establish system for auditing payments of salaries to physically serving police has been strongly felt for increasing transparency and accountability. The decision to recruit an independent MA was to monitor financial management and accountability practices until the capacity of MoI and MoF is developed in these areas.

6. Financial Status and utilisation6.1 Financial Status Table 5: Contribution Overview [1 April 2007 – 31 March 2008]

DONOR NAMECONTRIBUTIONS CONTRIBUTI

ON BALANCECommitted Received

Opening Balance 1386 -

20,822,914  

Canada 24,821,710

24,821,710

0

EC 60,471,976

49,041,298

11,430,678

Finland 2,841,046

2,103,583

737,463

Netherlands 12,500,000

12,499,970

30

Italy 1,474,926

1,474,926

-

USA 80,000,000

80,000,000

-

Germany 2,949,852

2,949,852

-

Switzerland 280,000

280,000

-

Iceland 100,000

100,000

-

Latvia 20,000

20,000

-

United Kingdom 3,646,295

3,646,295

-

USA from 2003 (unbudgeted)  

94,489  

Belgium from 2004 (unbudgeted)  

1,353  

Canada from 2003 (unbudgeted)  

45,958  

UNDP - Core Fund 63,380

63,380

-

TOTAL 189,169,186197,965,72

912,168,172

LOTFA IV-Project ID: 00052084, Annual Project Report (1386)

Table 6: Funding Status

Donor

Budget Expenditure

Project Balance

Earmarked

Available

Funding Opening Balance

Received Total

Period Prior to the

Reporting Year

Reporting Year Only

Total

Australia   1,550,

388 1,550,

388 1,

550,388 -

1,550,388

-  

-

Canada   29,132,

055 29,132,

055 4,

310,345 24,821

,709 29,132,

054

1  

1

European Commission 490,513 80,661,

851 81,152,

364 24,1

90,908 13,317

,961 37,508,

869 43,643,

495   43,643,

495

Finland 146,

885 2,885,

694 3,032,

579

33,063 2,269

,687 2,302,

750 729,

829 Activity 3  729

,829

Germany   9,537,

467 9,537,

467 6,

587,615 2,949

,853 9,537,

468

(1)  

(1)

Japan   6,000,

000 6,000,

000 6,

000,000   6,000,

000 -  

-

Iceland   100

,000 100

,000 -

100,000

100,000

-  

-

Italy   1,474,

926 1,474,

926 -

1,414,427

1,414,427

60,499   60,499

Latvia   20

,000 20

,000 -

20,000

20,000

-  

-

Netherlands   25,111,

682 25,111,

682 12,6

11,712 12,499

,970 25,111,

682 -  

-

Norway 468,

022   468

,022

187,828 -

187,828

280,194 Activity 3 

280,194

Switzerland 968,

485 1,030,

000 1,998,

485

527,404 50

5,313 1,032,

717 965,

768 Activity 4 &

6  965

,768

United Kingdom   8,907,

250 8,907,

250 5,

260,955 1,992

,040 7,252,

995 1,654,

255   1,654

,255

USA 9,369,

767 120,000,

000 129,369,

767 38,8

34,218 86,410

,183 125,244,

401 4,125,

366   4,125

,366  94 94     94   94

Donor

Budget Expenditure

Project Balance

Earmarked

Available

Funding Opening Balance

Received Total

Period Prior to the

Reporting Year

Reporting Year Only

Total

USA from 2003 (unbudgeted) ,489 ,489 - ,489 ,489 Belgium from 2004 (unbudgeted)  

1,353

1,353  

1,353

1,353

-  

-

Canada from 2003 (unbudgeted)  

45,958

45,958  

45,958

45,958

-  

-

UNDP - Core Fund   63

,380 63

,380 -

63,380

63,380 -   -

Total 11,443

,672 286,53

8,614 297,06

0,165 100,

094,436 146,41

1,833 246,50

6,269 51,553

,896 51,553

,451

6.2 Financial UtilisationTable 7: Annual Expenditure by Activity [1 April 2007– 31 March 2008]

Activity TitleBudget

Expenditure Balance Delivery

Rate

Activity01: Police Remuneration

188,238,865

140,861,968

47,376,897 74.83%

Activity02: Procurement of Non-Lethal Equipment

130,000

130,000

- 100.00%

Activity03: Construction 883,339

12,010

871,329 1.36%

Activity04: Gender Mainstreaming 943,372

193,788

749,584 20.54%

Activity05: Project Staff & Support

1,210,301

429,705

780,596 35.50%

Activity06: Electronic Payroll System 471,575

296,366

175,209 62.85%

Activity07: Audit & Evaluation 156,569

97,543

59,026 62.30%

GMS 3% 5,931,708

4,390,453

1,541,254 74.02%

Total197,965,

728146,411,

833 51,553,895 73.96%

Table 7: Annual Expenditure by Donor [1 April 2007 – 31 March2008]

Donor Activities Budget Expenditure BalanceDelivery

Rate

BELGIUM

Police Remuneration 1,312

1,312

- 100.00%

GMS 3% 41

41

- 100.00%

BELGIUM Total 

1,353

1,353

- 100.00%

CANADA

Police Remuneration 44,580

44,580

- 100.00%

GMS 3% 1,378

1,378

- 100.00%

CANADA Total   45,958

45,958

- 100.00%

FINLANDPolice Remuneration

2,040,476

2,040,476

- 100.00%

Procurement 130,000

130,000

- 100.00%

Construction 451,493  

451,493 0.00%

Project Staff & Support 196,618

  196,618

0.00%

Donor Activities Budget Expenditure Balance Delivery Rate

Audit & Evaluation 91,654

31,120

60,534 33.95%

GMS 3% 89,275

68,091

21,185 76.27%

FINLAND Total 

2,999,516

2,269,687

729,829 75.67%

ITALY

Police Remuneration 1,430

,678 1,371,994 58,684 95.90%

GMS 3% 44,248

42,433 1,815 95.90%

ITALY Total   1,474,926 1,414,427

0 95.90%

NETHERLANDS

Police Remuneration

12,124,971

12,124,971

(0) 100.00%

GMS 3% 374,999

374,999

(0) 100.00%

NETHERLANDS Total  

12,499,970

12,499,970

(0) 100.00%

NORWAY

Construction 272,321  

272,321 0.00%

GMS 3% 7,873

-

7,873 0.00%

NORWAY Total   280,194  

280,194 0.00%

SDC

Gender Mainstreaming 943,372 193,788 749,584 20.54%

Electronic Payroll System

471,575

296,366 175,209 62.85%

GMS 3% 56,134

15,159

40,975 27.01%

Donor Activities Budget Expenditure Balance Delivery Rate

SDC Total   1,471,081

505,313

965,768 34.35%

USA

Police Remuneration

86,906,654

83,388,173

3,518,481 95.95%

Project Staff & Support 1,013,683

429,705

583,978 42.39%

GMS 3% 2,709,700

2,592,305

117,395 95.67%

USA Total  

90,630,037

86,410,183

4,219,854 95.34%

EC

Police Remuneration

55,035,092

12,839,988

42,195,104 23.33%

Construction 159,525

12,010

147,515 7.53%

Audit & Evaluation 64,915

66,424

(1,509) 102.32%

GMS 3% 1,701,924

399,539

1,302,385 23.48%

EC Total  

56,961,456

13,317,961

43,643,495 23.38%

CANADA - DFAIT

Police Remuneration

24,077,059

24,077,058

1 100.00%

GMS 3% 744,651

744,651

0 100.00%

CANADA - DFAIT Total  

24,821,710

24,821,709

1 100.00%

Iceland Police Remuneration 100.00%

Donor Activities Budget Expenditure Balance Delivery Rate

97,000 97,000 -

  GMS 3% 3,000

3,000

- 100.00%

Iceland Total   100,000

100,000

- 100.00%

Latvia Police Remuneration 19,400

19,400

- 100.00%

  GMS 3% 600

600

- 100.00%

Latvia Total   20,000

20,000

- 100.00%

United Kingdom Police Remuneration 3,536,906

1,932,279

1,604,627 54.63%

  GMS 3% 109,389

59,761

49,628 54.63%

United Kingdom Total  

3,646,295

1,992,040

1,654,255 54.63%

Germany Police Remuneration 2,861,356

2,861,357

(0) 100.00%

  GMS 3% 88,496

88,496

(0) 100.00%

Germany Total   2,949,852

2,949,853

(1) 100.00%

UNDP Project Staff & Support 63,380 63,380 100%

UNDP Total

63,380 63,380 100%

Grand Total197,965,

728 146,411,833 51,553,895 73.96%