Attachment J.6 - Guidance on Reimbursable Costs for Zambian Government Staff.pdf

U.S. EMBASSY, LUSAKA

MANAGEMENT POLICY

Number: MP-060 Title: Daily Subsistence Allowance for GRZ Staff

Date issued or revised:

May 7, 2024

References:

Purpose

This policy replaces the previous policies issued by U.S. Embassy Lusaka in May 2010 and August 2017. It outlines procedures and amounts applicable to the reimbursement of costs for Government of the Republic of Zambia (GRZ) staff for their participation in programs and projects (as defined below) implemented by the U.S.Government (USG). This policy covers daily subsistence allowances (DSA), fuel and transport allowances, honoraria, and sitting fees, among others. This policy applies to all USG agencies operating in Zambia, all funding mechanisms, and at the prime and sub awardee level at any tier.

Background and Context

These guidelines reaffirm the strong collaboration and partnership between the GRZ and the USG in support of the national development priorities through the implementation of programs and projects.

The USG is implementing this policy to cover allowable expenses incurred by GRZ Participants in programs and projects organized by the USG, when such expenses cannot be covered by the

GRZ.

This policy, in support of the GRZ’s commitment for more efficient and effective use of financial resources to yield greater results, is expected to address some of the challenges related to the implementation and monitoring of programs and projects. This policy has been crafted in conjunction with other Cooperating Partners (CPs), including bilateral and multilateral development agencies as well as United Nations (UN) Organizations, to address the application of different rules when it comes to allowances, often leading to inefficiencies, confusion, and adverse incentives among GRZ officials when participating in programs and projects.

This policy aims to remove the room for multiple interpretation of the various policies for allowances. The CPs and UN Organizations have adopted similar policies.

The policy aims to achieve a renewed commitment to reduce overhead and related costs such as travel expenses and DSA from programs and projects and ensure best value for money in effectively delivering program and project activities by allocating more resources to direct implementation and program participants.

Definitions

Programs and Projects: While the terms can be interchangeably used throughout the document, program is a set of projects funded through development assistance and project refers to an activity or a set of activities funded through the USG to achieve the long-term vision and development goals of the GRZ.

Allowances: They represent the non-salary payment made to GRZ Participants to cover travel expenses (meals, accommodation, transport) related to their participation in Events (as defined below).

Events: They represent activities under a program or project funded through development assistance. Events may include, but are not limited to, meetings, seminars, trainings, workshops, study tours, and conferences.

Duty Station: It refers to the city of Lusaka or the district in which the Participant works and is assigned her/his duties on a normal basis.

GRZ Participants: Civil servants of the GRZ, including staff of GRZ constitutional bodies, parastatals, and state-owned enterprises, who may be eligible under this policy for allowable expenses incurred in programs and projects organized by the USG, when such expenses cannot be covered by the GRZ. Ministers and other dignitaries are not considered eligible for the payment of government allowances.

Participants: All persons invited to Events.

Policy

General:

1. When GRZ Participants participate in Events on invitation by a program or project, the GRZ has an interest in being represented to serve public interests in accordance with their institutional mandate.

2. The GRZ is expected to cover all costs related to the participation of GRZ Participants, including DSA, transport reimbursements, and accommodation. Notwithstanding the foregoing, there may be circumstances where the GRZ is unable to cover costs related to the participation of its GRZ Participants. In such cases, the USG may decide to provide transportation, meals, and accommodation in-kind.

3. No other allowances, other than what is identified below, are authorized to be paid.

4. The USG is not obliged by this policy to pay allowances to cover expenses incurred by GRZ Participants while traveling for official purposes.

Events:

1. Any Events must only be organized if there is a genuine and justifiable need. Once the decision is made to organize the Event, the duration and mode must be decided by exploring all means to effectively organize the Event and minimize the costs such as using virtual technology (e.g. virtual or hybrid Events) or holding the Event in the buildings of the USG, GRZ, or partner organizations. The decision and agreement for the duration and mode of an Event must be documented.

2. Event organizers must use reasonable judgment to ensure that all Participants are appropriate both in terms of their qualifications and also their numbers (e.g. GRZ Participants and other Participants should not unnecessarily be removed from their duty stations to attend an Event).

3. The selection of the location of the Event when physical or hybrid must be within the duty station where the majority of Participants are located. For Lusaka Province, the duty station is defined by a 56-kilometer distance1 from the district main post office. For all other provinces, the duty station is defined as the district where the majority of the Participants are located. In the case of hybrid Events, the majority is determined by the number of Participants required to attend the Event in person. In the case of Events where there is no clear location with a majority of Participants, then a location must be chosen that limits, to the maximum extent practicable, the amount of travel for Participants.

4. Only GRZ Participants considered necessary to contribute to the objectives of the Event may be invited. Only GRZ Participants duly invited (or delegated in writing) that are effectively present during the Event will be eligible for allowances. No allowances can be paid for Events located within the duty station as defined above.

5. The National Registration Card (NRC) is the primary source of identification for GRZ Participants to be paid allowances to attend Events. An attendance sheet must be established for each morning and afternoon of the Event to ascertain effective participation with the signature and the identity document number (NRC or other valid ID) of each GRZ Participant on the attendance sheet.

Allowances:

1. GRZ Participants may not receive allowances from other funding sources for costs and expenses already borne by the USG to prevent double dipping.

1 For Lusaka, radius distance is calculated using Google Map Direction by choosing the closest post office within the duty station or where most Participants reside and the destination by indicating the city or the specific location of where the Event will be held. This distance is used to calculate whether the activity is outside the duty station.

2. Any allowances provided pursuant to these guidelines must be made by reimbursement after the GRZ Participant’s attendance is confirmed. Advances are not authorized.

3. These guidelines apply to all funding mechanisms, whether contract, grant or cooperative agreement, and whether at the prime or sub award level (at any tier).

4. Full board vs DSA payment: When Events require travel away from the duty station, full board (breakfast, lunch, dinner) may be provided in-kind depending on the duration of the Event. Accommodation may only be provided when returning to the duty station on the same day is not reasonable. However, in exceptional circumstances only, where meals and accommodation cannot be provided in-kind or where it is clearly established and documented with a cost-benefit analysis that full board in-kind is not a cost-effective option, GRZ Participants may be paid DSA in accordance with the rates set out below.

5. DSA: DSA includes Accommodation, Breakfast, Lunch and Dinner as per the breakdown stipulated below. It is paid only in case of overnight travel away from the duty station when accommodation and meals are not provided during the Event in-kind. When meals (breakfast and/or lunch and/or dinner) are provided, the applicable rate of the DSA must be reduced by the respective amount stipulated below. DSA may only be paid for an Event outside the duty station. The rates are harmonized for all as GRZ Participants are assumed to incur the same costs during official travel irrespective of the status and grade.

ZMW

Duty Stations Breakfast Lunch Dinner Accommodation Incidentals Total

All locations 100 150 150 600 100 1,100

6. Meal allowance is only paid in case of travel away from the duty station for a duration of

8 (eight) hours or more when meals are not provided during the Event.

7. Incidentals: GRZ Participants may be reimbursed for incidentals at the rate in the table above only in the case of overnight travel away from the duty station. When full board in-kind is provided, a Participant is only eligible for incidentals.

Transport:

1. Transport refund: Transport to Events must be organized with the objective of minimizing the costs by using pooled cars (e.g. sharing of vehicles, low consumption vehicles or the use of public transport, etc). Transport refund does not apply for short distance travel of less than 8 kilometers one way or 16 kilometers round trip. Personal vehicles may only be used in case of documented, non-availability of official vehicles and must still follow the requirement to minimize costs above. If GRZ Participants are not able to justify the use of an official or private vehicle, public transportation fares will be used to refund the transport cost based on receipt or the latest available public Transportation Association fare charts issued for specific locations2.

2. When not using public transportation, the transport refund will be only paid to one individual per vehicle and all other GRZ Participants traveling in the same vehicle are not entitled to any transportation refund.

3. The use of a personal or private vehicle can be subject to fuel refund if the request to use a personal or private vehicle was approved prior to travel and the GRZ Participant is able to justify the non-availability of an official vehicle for the travel and the use of a personal or private vehicle. In such an instance , the USG will not be held responsible for the cost of insurance or maintenance nor assume any other liabilities.

4. The amount for transport refund must be supported by documentation and must be reasonable. The maximum amount of transport refund allowed each way is calculated using the below:

Sedan = distance (km) x fuel cost per liter / 8 4x4 Vehicle = distance (km) x fuel cost per liter / 5 Motorcycle = distance (km) x fuel cost per liter / 15 .

Other:

1. Sitting allowance: GRZ Participants to Events shall not be paid sitting allowances.

2. International travel: These guidelines do not apply to travel outside Zambia. In such cases, other USG policies and procedures will apply.

3. Honoraria: GRZ Participants may not receive any payments (e.g. honoraria) for performing duties during Events (e.g. workshop facilitation/presenting papers/etc.) for which they receive a salary. The only exception is for traditional leaders if the item is: (i) of nominal value, (ii) occasional, and (iii) preferably in-kind. If cash is to be given to traditional leaders, the amount must not exceed ZMK500 (the Ministry of Chiefs and Traditional Affairs' flat "honorarium" rate).

4. Salary Top Ups: Unless a waiver is granted pursuant to “Waivers” below, “salary top ups” are not reimbursable by the USG.

5. No other allowances are authorized for reimbursement for GRZ Participants.

6. Inflation: The proposed allowances may be reviewed annually by the CPs to reflect significant changes in the prices, the prevailing inflation, or existing macroeconomic conditions. Any changes in the allowance as a result of CPs review will be considered by the USG for revision.

2 Annex 01 is providing the latest Transportation Associate fare charts following the bus fare reduction dated 13 April 2023: https://www.rtsa.org.zm/wp-content/uploads/2023/04/BUS-FARE-REDUCTION-APRIL-2023.pdf

Waivers

Exceptions to these guidelines may be granted as deemed appropriate by the USG funding agency to the extent permitted by USG laws, regulation, and policy.

Approved: CDA: LWahid

Cleared: USAID: PWiebler (OK)

MGT: NReynolds (OK) Pol/Econ: JArmiger (OK) DOD: TStibral (OK) CDC: Aauld (OK) Peace Corps: TKatz (OK)

Drafted: USAID: RSharma