At the request of the United States Agency for International Development (USAID) in Liberia, Liberia Strategic Analysis (LSA) contracted an independent team to evaluate pay and payroll processes and related performance management across the Government of Liberia (GOL). This evaluation addresses the following questions:
1. Building on recent donor interventions, what are the current gaps in pay and payroll processes and related key performance management in Liberian Government institutions, with specific focus on the Ministry of Education and Ministry of Health?
2. What are the ways in which USAID can work with the GOL to address these gaps?
3. What institution-building measures, relating to pay and payroll management, can be implemented to facilitate GOL ownership and sustainability of reforms beyond donor assistance?
This evaluation uses a mixed-methods methodology, including review and analysis of 200+ documents, interviews and focus group discussions with 90+ GOL stakeholders at the central and regional levels, and direct observation of GOL processes.
The following evaluation findings critically affect pay and payroll processes:
? A lack of overarching governance accountability structures across the GOL;
? Significant issues with payroll integrity and centralized payroll management processes;
? Gaps in data integrity across almost all GOL data systems examined during the evaluation;1
? Delays and accountability issues in salary disbursement;
? Performance management initiatives across GOL not achieving strong results; and
? Multiple uncoordinated and fragmented donor interventions that have not sufficiently impelled the GOL to fix the core structural issues required to bring pay and payroll processes in line with best practices.
This evaluation explores critical financial incentives for the GOL that underpin a flawed, inflated payroll and undermine the required reforms to bring pay and payroll processes in line with international best practices. As a benchmark for further USAID assistance to the GOL, it is recommended that GOL implement the 2014 Medium-Term Pay Reform Strategy, including eliminating allowance schedules. The GOL must eliminate the incentives for retaining a faulty payroll and find political will at the highest levels to succeed in reforming pay and payroll processes.
