Grant Allocation Formula

 

The Grant Allocation Mechanism

The Grant Allocation Mechanism is the most important element of the MDP. This is the first time a performance-based formula has been used in conjunction with infrastructure grants in Palestine. The allocated fund under component 1 was distributed among all municipalities based on this criteria.

The grants are based on 50 percent on performance, 30 percent on population and 20 percent on needs. Municipalities are ranked according to 16 basic accepted “good practices” performance indicators. Funds are allocated based on the municipal rank. Municipalities with higher rankings will be eligible for more funding than those with lower rankings. The MDP works closely with municipal leaders to help those in the lower levels move up to a higher ranking.

Grants Allocation Performance Indicators for MDPII

Rank

Performance Criteria)

Performance Criteria





A++
   

A+

A

Fulfillment of all below indicators in addition to the following:

 5 out of 5

4 out of 5

3 out of 5

  1. Substantial Operation and Enterprise Account Surplus. (more than 15 %)
  2. Unqualified External Audit
  3. Use of an Integrated Financial Management System IFMIS
    1. Satisfactory Service Quality  (Timely delivery of building licenses and clearances; Provided public green space per capita)
    2. Good Collection Efficiency and own Revenue Generation (Specified own revenues > 100 NIS per capita or 10% above last two years’ average)






B++

B+

B

Fulfillment of all below indicators in addition to the following:

 5 out of 5

(3 or 4) out of 5

2 out of 5

  1. Substantial Operation and Enterprise Account Surplus (more than 5%).
  2. Fixed Assets Register in place and updated
  3. Operation and Maintenance Plan in place and updated
  4. Public disclosure of all municipal investments, SDIP execution, and external audit reports

10.  Satisfactory Collection Efficiency and own Revenue Generation (Specified own revenues > 50 NIS per capita or 5% above last two years’ average)







C++

C+

C

Fulfillment of all below indicators in addition to the following:

 5 out of 5

(3 or 4) out of 5

2 out of 5

11.  Municipal Strategic Development and Investment Plan SDIP in place and updated.

12.  Financial Accounting Policies, Procedures and Reports in place.

13.  External Audit according to minimum standards

14.  Public disclosure of budgets, SDIP plan and ranking

15.  Basic collection efficiency and own revenue generation (Specified own revenues > 25 NIS per capita or above last two years’ average)

D

Fulfillment of this indicator

16.  Budget forecast and executed properly submitted and approved by MoLG

E

Minimum requirements not fulfilled

 


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