USAID LP Training - September 22, 2021
USAID Local Implementing Partner Training:Expenditure Reporting
September 22, 2021
Christy Knight & Erin Dunlap
USAID/OHA Expenditure Reporting Branch
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USAID LP Training - September 22, 2021
Welcome and Agenda
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★ ER Overview★ What’s new in FY21 and beyond★ ER Resources★ Financial Data Use★ Common Questions, Challenges, and Best Practices:
Templates and tools for translating partner tracking into Expenditure Reporting
★ Q&A and Discussion
USAID LP Training - September 22, 2021
Introduction to the PEPFAR Financial Framework: Expenditure Reporting
Increase reliability, usability, and timeliness of financial data to achieve program impact
Improve accountability and efficiency of PEPFAR programs
Clarify linkages between COP/ROP (Country Operational Plan/Regional Operational Plan) and central funding budgets, program implementation, budget execution and financial management and reporting
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USAID LP Training - September 22, 2021
Process Flow of Annual Financial Planning and ReportingTrack financial information from budgeting to work plan budget to expenditure reporting using same classification
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1. COP Strategy and Budget• Determine full year amount
for each mechanism• Determine funding level for
interventions --Program Area and Beneficiaries
2. Work Plan Budget • IM interventions further
elaborated by Cost Category
3. Expenditure Reporting• Expenditures reported against
the interventions identified in the work plan budget
USAID LP Training - September 22, 2021
Implementing Mechanism (IM)-Level Budget & Expenditure Components
INTERVENTIONDetermined by USAID field teams and approved by S/GAC during COP20/FY21 process and should be provided by the USAID A/COR
for workplan development
Further disaggregated by partners into cost categories = “what we are buying”
COP20/FY21Budget
in PEPFAR Financial Classification Structure
Program Area Beneficiary Cost Category
USAID LP Training - September 22, 2021
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Classification: Program AreaProgram : Distinct organization of resources directed toward a specific strategic objective, or, alternatively, a set of activities that achieve a common outcome.
USAID LP Training - September 22, 2021
Intervention ExamplesIntervention 1 Intervention 2 Intervention 3 Intervention 4
Program Area Testing Socio-economic Care & Treatment Above-site
Subprogram Area
Community-based – Service
delivery
Education assistance –
Service delivery
HIV clinical services – Non-service delivery
HMIS, surveillance and
research
BeneficiaryGroup Key Pops OVC Non-targeted Non-targeted
Sub -Beneficiary Group
Sex Workers OVCNot
disaggregatedNot
disaggregated
Inte
rven
tions
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For complete definitions of program areas, beneficiaries, and cost categories please refer to the ‘PEPFAR Classification Reference Guide” found on datim.zendesk.com.
USAID LP Training - September 22, 2021
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• USAID takes varying approaches to selecting interventions• “Split” interventions to highlight breadth and depth of
programmatic activities• “Lump” interventions to demonstrate a more cohesive picture
Maximum 35 interventions (including one for program
management) can be entered on the template
No way to disaggregate in every possible way, especially
for comprehensive IMs
Level of Detail
USAID LP Training - September 22, 2021
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Classifications: Cost Category
• Object: What is the Implementing Partner purchasing with their PEPFAR money?
USAID LP Training - September 22, 2021
PEPFAR Expenditure Reporting Process BasicsMethodology
• Capture all expenditures for the fiscal year that just ended COP20/FY21 (Oct 1, 2020 – Sept 30, 2021)
• Cash basis• Reported annually in USD ($)• Only PEPFAR funding (e.g. do not count USAID malaria $, or Gates HIV $)• Prime partner is responsible for reporting all expenditures (including
subrecipients)
For complete definitions of program areas, beneficiaries, and cost categories please refer to the ‘PEPFAR Financial Classification Reference Guide” found on datim.zendesk.com.
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USAID LP Training - September 22, 2021
One (1) template per Implementing Mechanism (IM) per Operating Unit (OU)
• An IM that operates in 2 OUs must submit 2 templates, one for each OU– E.g. The fictional “Clinical Services Project” IM implements in both Burundi & Rwanda (Prime IP
must submit 2 templates)
• IPs with multiple IMs in an OU must prepare 1 template for each IM, you cannot combine expenditures for all IMs in a given OU– E.g. The fictional IP “Burundi Centre for Health” implements 3 different PEPFAR IMs in Burundi
(Mechanism A , Mechanism B, & Mechanism C) and therefore submits 3 ER templates
What about Regional Programs?• Same regional groupings as COP19/FY20 reporting• Submit one (1) template per IM, per country
PEPFAR Expenditure Reporting Process Basics
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USAID LP Training - September 22, 2021
What’s New for COP20/FY21 Q4 Expenditure Reporting
• Minor/Administrative Updates– Financial classification reference guide v.7.6.21 (download from
DATIM Zendesk)
– New DATIM warnings on impossible combinations:
• Site level HCW expenditure allocated to Above Site program area• International travel or construction expenditures for Service
Delivery (SD)– IPs will be prompted to enter optional narratives for certain
combinations, such as HCW and NSD intervention.
• These narratives are optional, and these warnings will not prevent successful upload/submission.
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USAID LP Training - September 22, 2021
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COP20 / FY21 Expenditure ReportingCOP Cycle Implementation Year/FY Annual Q4 Reporting Dates
COP20/FY21 (Approved May 2020) Oct 1, 2020-Sept 30, 2021 Oct 1, 2021-Dec 17, 2021
COP21/FY22 (Approved May 2021) Oct 1, 2021-Sept 30, 2022 Oct 1, 2022-Dec 2022
What resources do I need to complete the ER template?
1.COP20/FY21 budget by intervention2.Clean COP20/FY21 template
downloaded from datim.zendesk.com3.Classification reference guide
(datim.zendesk.com)
USAID LP Training - September 22, 2021
COP20/FY21 Q4 Expenditure Reporting Timeline
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Data Collection
Data Cleaning
USAID LP Training - September 22, 2021
DATIM.org Upload & Submission
IP users will login to datim.org to upload & submit ER templates:
Upload/Submit/Approve :• IPs will upload in the ERB Processor app• IPs will submit in the Data Approval app• USAID will approve in the Data Approval app
USAID LP Training - September 22, 2021
DATIM Accounts & Submission
• At least one person from each organization will need to have a registered ER/Budget DATIM.org account in order to successfully upload and submit an ER template in DATIM
• If you have submitted a COP21/FY22 work plan budget template and/or logged into DATIM the past 95 days:
– Access will be granted to DATIM automatically as account has not been deactivated due to lack of activity
• If you have not submitted a COP21/FY22 work plan budget template: – Users without existing DATIM accounts, or expired accounts (not logged in for
95+ days) will need to request a new account. • Register at https://register.datim.org/
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USAID LP Training - September 22, 2021
Looking Ahead to COP21/FY22 Reporting...
• Disaggregated subrecipient reporting will phase in with the COP21/FY22 ER cycle, starting October 2022
– Each subrecipient with COP21/FY22 expenditures greater than $25,000 will be required to complete an ER template.
– Subrecipients with COP21/FY21 expenditures less than $25,000 will continue to report expenditures as in FY19-21: not disaggregated by cost category, but still reported by intervention to the prime partner.
– COP21/FY22 ER reporting will require 1 prime partner ER template and x number of subrecipient templates. All templates will be submitted by the prime partner.
– By reporting expenditures in a separate template, subrecipients eligible to report will provide full cost category detail on their expenditures in addition to the program area and beneficiary information that was previously reported.
– Utilize this information now to prepare for next year!23
USAID LP Training - September 22, 2021
Expenditure Reporting Available Resources: Guidance
Resources Available:
1. COP20/FY21 ER template
2. Classification Reference Guide version July 2021
3. What’s New for COP20/FY21 Reporting?
Navigate to datim.zendesk.com, PEPFAR Guidance 26
USAID LP Training - September 22, 2021
Expenditure Reporting Resources: Submission in DATIM
Step-by-Step Guides Available:1. Instructions for IP Users:
template completion & submission
2. Instructions for Agency Field users: reviewing, approving, or rejecting ER data
3. How to clear common errors
4. Approval statuses and actions
5. Requesting a DATIM user account
Navigate to datim.zendesk.com, DATIM Training & Tutorials, for step-by-step DATIM submission tutorials 27
USAID LP Training - September 22, 2021
Expenditure Reporting Resources: Help Desk Tickets
Reasons to Contact the Help Desk1. Invalid template upon
upload and cannot clear the error after checking DATIM tutorials
2. Mechanism is missing in DATIM
3. Cannot upload/submit4. Cannot reject/recall a
template5. Username/password
issues6. Technical glitches or
questions navigating the system
Navigate to datim.zendesk.com, Submit a Request 28
USAID LP Training - September 22, 2021
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Prior ER Webinar Recordings
ASAP-hosted COP19/FY20 Expenditure Reporting Webinars (September 2020, January 2021)
https://www.intrahealth.org/pepfar-expenditure-reporting-repeat
Additional details on Financial Framework, Expenditure Reporting process, and Data Use
USAID LP Training - September 22, 2021
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USAID-Specific Resources
1. COP20/FY21 COP Budgets (access through activity manager)2. Additive Data Reporting Guidance*3. Best Practices for Partner Reporting* 4. Data Quality Framework*
* To be distributed the first week of data collection via USAID Field Teams or can reach out to [email protected]
USAID LP Training - September 22, 2021
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Technical Assistance for Local PartnersThrough ASAP, consultants will be available to support USAID local partners, located in Africa only, throughout the ER process
LPs will be notified shortly of their designated consultant POC
Consultants can help with:
• Categorizing and allocating expenditures• Understanding the financial framework as outlined in the PEPFAR
Classification Reference Guide• Reviewing data for completeness and accuracy prior to submission• Resolving errors and warnings from data validation checks• Navigating data submission process
Local partners based in Asia and the Western Hemisphere will still have technical assistance available through USAID/HQ backstops, and [email protected]
USAID LP Training - September 22, 2021
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Technical Assistance for USAID IPs and OUsEach OU USAID team will have a HQ-based USAID ER Backstop to support the ER process.
• Backstops will provide oversight and high-level technical assistance, particularly around data analysis and use
• Questions regarding categorizations, or definitions of program areas/cost categories can also be routed to your A/COR, and/or you can contact someone from the EA team at OHA by emailing [email protected].
All questions related to DATIM submissions (error upon upload, forgotten password, IM does not appear in DATIM, data approval app isn’t visible, etc.) please contact technical support at DATIM Zendesk.
USAID LP Training - September 22, 2021
What is the Purpose of the Spend?Are we focusing our resources on the right strategies to reach our targets?
What types of activities/program areas should we be investing in order to get closer to epidemic control? Do we see that in the data? Do we invest too much in case finding and not enough in linkage and retention for care and treatment?
IPs that operate where there is better treatment and testing coverage might show higher expenditures in non-service delivery activities than service delivery, that reflects the program might be nearing a point of epidemic control (i.e. greater spend in Non-Service than Service Delivery) 35
USAID LP Training - September 22, 2021
Who Are We Serving?Are we focusing our resources on the right populations?
“Females: Young Women & Adolescent Females” (DREAMS) and “Males: Adult Men” are some of the priority PEPFAR populations
We can triangulate the expenditures of some of these priority beneficiary groups with other PEPFAR indicators to determine if we are investing at the right amounts for the groups of people we are targeting in our testing, linking them to treatment, and reaching them through prevention programs
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USAID LP Training - September 22, 2021
How Are We Spending Our Resources?What are we buying?
Are we spending our resources on the right things to meet our program goals/targets? Are different implementation models reflected with different spending patterns?How should we potentially shift investments in the next fiscal year to achieve greater program success?
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USAID LP Training - September 22, 2021
Data Triangulations:How did we execute the budget, what did we achieve?
Key QuestionsHighlights where there may be issues with spending and achieving
ConsiderationsWhy did we not achieve 100% of targets and yet we expended 100% of the budget? Was service delivery disrupted or more costly than anticipated?
Are we seeing efficiencies over time as IMs mature from start-up?
Can we improve our budget projections for next year?
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USAID LP Training - September 22, 2021
Accessing ER Data: IPs Can Download IM-Level Financial Data on PEPFAR Panorama Spotlight
• Spotlight is PEPFAR’s public data source
• Budget amounts are aggregated to the mechanism ID, budget code, and planning year level.
• PEPFAR partner expenditures are shown at the total mechanism level PEPFAR Panorama Spotlight:
https://data.pepfar.gov/additionalData 39
USAID LP Training - September 22, 2021
PEPFAR Panorama Spotlight Dashboards
• Financial management visuals look at total funding and expenditure
• Partners can review their budget execution at partner/IM level
PEPFAR Panorama Spotlight: https://data.pepfar.gov/dashboards40
USAID LP Training - September 22, 2021
What is your biggest challenge from prior ER cycles or your greatest concern for the upcoming reporting?
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Please answer the following question in the chat box:
USAID LP Training - September 22, 2021
Common Questions and Challenges
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How should IPs use the data?
How is the USG using the data?
Under which category should XYZ activity be
counted?
How are MER and ER data linked?
Are there acceptable rates or variances for budget versus
expenditure?
How should expenditures be aligned to budgets?
Are there expectations for certain thresholds (e.g.
%of budget for PM)? How do I get started?
What is the best way to map our expenditures to the ER
framework?How should expenditures be
allocated to various beneficiaries?
How can we translate our cost categories into the ER-defined
cost categories?What are the best ways to allocate staff time to
interventions?
What if we haven’t paid an invoice before Sept 30?
What is the last date to report FY21 expenditures?
Expenditure Reporting: Experiences and Perspectives from an Implementing Partner
Sushant MukherjeeDirector, Economic Analysis
Elizabeth Glaser Pediatric AIDS Foundation (EGPAF)Sept. 22, 2021
ER Approach: Guiding Principles• “Don’t let the perfect be the enemy of the good”: this is a complex and
dynamic exercise; obtaining thoughtful estimates that reasonably represent the reality of project’s spending is a more realistic goal than trying to rebuild systems from scratch to capture this data at a high level of precision.
• Dialogue and Collaboration: ER necessarily involves a wide range of stakeholders, including finance, programs, M&E, grants; reports should not be completed without close collaboration from all stakeholders, as well as clear dialogue with donor throughout ER process.
• Learning: As much as feasible, EGPAF is committed to using ER data to learn about its programs, including whether it is adequately investing in certain program areas, over-resourced in areas that are no longer strategic priority, using ER data to have more informed dialogues with donor, etc.
Methodology at a Glance• Directly Assigned Costs: Where feasible to directly assign expenses, we will do so. For example, if we
purchase Cervical Cancer supplies, we can clearly assign to a Cervical Cancer intervention under Supplies-Health.
• Salaries: Staff time for non-operations staff is assigned to specific interventions based on Level of Effort (LOE) estimation, as undertaken by senior programs staff.
• Sub-grantees: Sub-recipient costs are assigned to specific interventions based on estimation of which interventions relate to their technical scope.
• Other cross-cutting costs that benefit more than one intervention (the majority of our costs) are allocated using one of a number of possible strategies:
o LOE (e.g. we often allocate travel costs by LOE of program staff, since, for large projects, it is not feasible to code each site visit expense with a specific intervention, plus labor is seen as an appropriate proxy for travel).
o Technical Allocation (senior program staff will determine the most appropriate distribution of certain costs by intervention)
o Patient Volume (e.g. we may allocate certain costs by volume of patients related to a given intervention)
ER Reporting ProcessBuild / Update
Internal ER Tool
Develop Allocations for Personnel, Subs, Other
Expenses
Pull in Expenditures and Compile First
Draft of ER
Conduct Analysis / “Reality Check” relative
to COP (FAST), and adjust.
Review of Complete ER Draft
Revise ER based on Feedback
Upload / Submit ER File into
DATIM
Can start before all expenses captured.
Must involve senior leadership.
A Multi-Disciplinary Approach is Essential
Programs
Finance/ Operations
M&E / SI&E
Expenditure Reporting • Technical allocations
for staff and subs• Help to define cross-
cutting allocations –e.g. we renovated a waiting area – what intervention(s) benefited?
• Triangulating with MER data – e.g. we report MER data on VMMC and HTS_INDEX but no costs reported for HTS or VMMC.
• Ensuring total $ align with spending during reporting period.
• Coding / tagging individual transactions to interventions.
Lessons Learned and RecommendationsStaff: Having senior management develop allocations for all staff elicits better data
quality than asking individuals to disaggregate timesheets by intervention.
Sub-Grantees: Grants and technical teams can work together to determine which interventions are relevant for a sub-award based on its technical scope. In FY22, when ER moves to sub-level reporting, prime should develop internal guidance and an internal training for sub partners to ensure subs have same understanding of ER guidance.
Communicate with Donor / Mission regularly: Critical to reach out proactively to missions about ER prior to submission, including any advice they have on how to handle inevitable deviations between $ by intervention in the ER and the COP allocations / FAST tool. Also reach out to USAID HQ liaisons for ER reporting, who can play a key role interfacing between missions and partners.
Lessons Learned and Recommendations Radical changes in coding and capturing data is not always necessary or
advisable. Focus more on how you can adapt existing systems / procedures to capture better data, and less on rebuilding systems from scratch, or hiring additional human resources, to focus exclusively on ER. Examples of changes we made include:
o Rather than trying to find new accounting software, or fundamentally change how we capture financial data, we used a field in QB to start tagging expenditures that could be directly assigned (e.g. program supplies, trainings), with ER interventions.
o We modified budget template to clarify which staff and contracted workers are Clinical vs Ancillary vs “Other.”
Lessons Learned and Recommendations State your assumptions. Allocations and assumptions are fine, but clearly state and
document assumptions in any internal template you are using. This will also help to ensure consistency in reporting.
SD versus NSD? Just do your best, and focus on getting the program area right. For SD versus NSD distinctions, FAST / COP allocations typically do not provide funding to sufficient NSD interventions. E.g. you do training and supervision on HTS, but only intervention for HTS is SD. If mission will not allow you to add an intervention, just classify NSD spending under SD for the appropriate program area.
Start early. Most work related to ER reporting can be completed well before all expenditure data is captured. For annual ER reporting, EGPAF typically begins revisiting assumptions, updating allocations, and compiling initial spending data as early as August.
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