This policy note analyzes thecomposition of public expenditures that support devolvedservices (including the resource allocation decisions thatsupport these expenditures), an assessment of the quality oflocal service delivery based on available local data, and anevaluation of the interactions between various publicentities that finance and provide local services. The reportincludes reviews of local capital investments, local roadsector, and the local health sector. The findings from thecase studies suggest the need for the rationalization,harmonization, and simplification of local planning andbudgeting requirements prescribed by national governmentoversight agencies. There is also strong need for thenational government to clarify the assignment ofadministrative responsibility for local roads in order toimprove the planning and coordination of investments.Finally, the Department of Health should continue to buildon its comprehensive reform agenda, which is focused oncreating incentives for the local government unit'shealth sector performance and strengthening systems of localaccountability for the province-wide health system.