Program Review Board (PRB) Minutes - Sep 13, 2003

Program Review Board (PRB) Minutes - Sep 13, 2003 Attendees: *David Oliver Chair, Director of CPA Office of Management & Budget Sherri Kraham Director, Program Review Board *Lewis Lucke Deputy Director, US Agency of International Development *Heidi Venamore Representative of the Australian Govemment Representative of the UK Government *Nick Harvey COL Paul Hough CPA Comptroller CPA - Head of Contract Activities COL Tony Bell *COL Michael Toner Coalition Joint Task Force-7 Comptroller Coalition Joint Task Force-7 Deputy Comptroller LTC Terry Ross CPA Chief Financial Officer Al Runnels Representative of National Security and Defense *Gerald Thompson CPA Director of Operations *Andy Bearpark *Suzanne Schaffrath Representative of CPA - Governance *Marek Belka Director of Council for Int'l Cooperation James Carrera Representative - Pentagon Management Liaison Cell Ali Khedery CPA - Amb Kennedy's Office H. Bassford Regional Coordinator of CPA's Baghdad Regional office Larry Howard Representative of CPA's Baghdad Regional office J. Lemmon Representative from Amb Bremer's Office R. Meldonian Defense Contract Audit Agency. CDR Kevin Waskow Representative of CPA - Comptroller Andrew Goledzinowski Representative of Council for International Cooperation *Voting Members The Chair briefed the Board on the status of the supplemental appropriation request. Deputy Secretary of State and Treasury will go to Capitol Hill Tuesday. Deputy Secretary of Defense has already testified. Spent morning with Congressional delegation to push for appropriation. Previous minutes approved. Status of Funds: The CFO briefed that the total funds available $1.3B. DFT $1.3B, totaling salaries and budget operations, will go on through November, not including projected expenditures. IRRF are fully committed and there are multiple claimants against funds. Oliver: If include expected oil revenues; will only make it to December. The following Funding Requests were considered by the Board for recommendation to the Administrator: #463 - Commander's Emergency Response Program, S60M Oliver: In the long run, would like to implement this program through civilian authorities in regions. Pragmatically, Andy still building regional representatives and military is spending money with results now. Would like to fund $10M for rest of September; S20M each for October and November in that they pay FPS salaries; and $10M for December. Put $8M/ per month in next years budget. Kraham and Bearpark to get with CJTF-7 to work out a plan for transitioning this for going through regions. Amb Bremer seeing too many results with military to transition now. Funding would be DFI. Runnels: Have 90M in euros, trying to convert in either Kuwait or Europe to US dollars, would be additional seized funds, would like to continue CERP with seized for as long as funds are available. Approved, $60M. #453 - Prisons Development Program, S11.5M Gilman: Department of Justice to bring in team of top-level management to train corrections officers for transitioning prisons from US military to Iraqi control. Critical mission due to absence of rule of law in Iraq. Oliver: How much can be funded from ministry budget? S10M still available. Intend to take funds from Iraqi prison budget; need to approve something for 3 new ministries, make fixes for Oil-for-Food program that stops on 21 Nov; will bring new supplemental. First thing is to partially fund from money that prisons have not spent, take and redeploy. Hough: S112M site security. Oliver: Proposal, for whatever money we can't get; will do this through new money that is available. Runnels: New money is for CPA overhead type expenses. Oliver: This works because we classify as an overhead, since they're U.S. personnel can attach to CPA. Approved, $11M. #486 - Sadr City Interim District Advisory Council, $1.1M Bassford: Project is to increase credibility and legitimacy of councils. Trying to put influence of power in the country (specifically in Sadr City) in the councils. Neighborhood councils will work with 103 sectors dividing S10K per sector to do projects identified by sector committees (assisted by the neighborhood councils) to do anything they want (community centers, daycare), no payment for salaries. If sectors want to participate and provide skilled labor (plumbers or electricians), must be voluntary basis. Once project selected and agreed to, memorandum of understanding between sector committee and neighborhood council (ultimate authority for approving projects) completed. Project forwarded through 1* AD before forwarding to district office for funds disbursement. 50% disbursed in beginning, won't disburse more until first $5000 is disbursed and report received. Oliver: Essentially, funding for pilot project in pursuit of democracy. Kraham: A sector is a subdivision of a neighborhood; if several sectors want to join forces to do a neighborhood project, they can combine funds. Runnels: Program resembles CERP, put money out in sectors, large potential for misuse. CERP has system in place; this project does not. Bassford: Funding controls planned, both oversight by military battalions and district, which have fund managers and supervisors. Neighborhood councils have a specific interest and want to ensure resources go to support their neighborhood, control by Iraqis for Iraqis. Actually, think we're over controlling. Oliver: Report received conceming Baghdad Central Iraqis engaging in fraud. Directed Runnels to have auditors take a look. Consider a pilot; get back to the board. When fraud is reported, we have to investigate, have to be attentive. Approved, $1.1M. #458 - Security for Governing Council Compound- $712,000 Khedery: Two instances of TED activation, lucky on both instances. Concern of security at various levels. Oliver: Providing outer two-layers of barriers. Approved, S712K. Oliver: New request for S50K, for justified items identified for Amb Kennedy for governing council. Essentially gives authority to spend S50K without having to come to the board. Bearpark: Real problem, have a request (currently going through the system) for $1000 for the Governorate Coordinators to do their jobs but if Governorate Coordinators can't have flexible funds, why give that authority to the Governing Council. Kraham: The problems with Governorate request, essentially representational funds (indicated on document) not appropriate use of Iraqi funds this is operating/entertaining costs. Won't consider now, will take up at next meeting. #456 - CPA Regional Programs, $28.5M Kraham: This has come around before. Assessed allocations based on current spending patterns and amount in accounts already. Baghdad did not receive Construction Initiative fund, others have between half and almost the full amount available to them. Big spender South Central has depleted $15M, ready immediately for a plus up; would like to expand per project authority to $200K. Regional directorates maintain administration of programs until the Program Review Committee (CFO, Comptroller and contracting) can certify ensuring appropriate procedures are in place for governorate teams to administer programs. Authority to cover emergency response programs and infrastructure and construction projects contained in the construction initiative. If they choose, can do long-term projects (S1M for city councils) if they want to spend their money that way. $5M per month for South Central who is currently spending at an increased rate, $1.5M per month for all other regions. Figures based on current spending, can reevaluate later. Bell: Have contract officer in Basrah, money in regions tied to CERP and DERP. Projects may be handed to them, trained contract officers. Approved for seized funds if available, $28.5M.