The World Bank Implementation Status & Results Report Bangladesh Strengthening PFM Program to Enable Service Delivery (P167491) Bangladesh Strengthening PFM Program to Enable Service Delivery (P167491) SOUTH ASIA | Bangladesh | Governance Global Practice | Requesting Unit: SACBB | Responsible Unit: ESAG1 IBRD/IDA | Program-for-Results Financing | FY 2019 | Team Leader(s): Suraiya Zannath, Khuram Farooq, Nazmus Sadat Khan Seq No: 12 | ARCHIVED on 26-Apr-2024 | ISR60530 | Created by: Aleksandar Kocevski on 18-Apr-2024 | Modified by: Aleksandar Kocevski on 20- Apr-2024 Program Development Objectives PDO Table Program Development Objective (from Program Appraisal Document) The Program Development Objective (PDO) is to improve fiscal forecasting, budget preparation and execution, financial reporting and transparency to enable better resource availability for service delivery in selected Ministries, Departments, and Agencies. Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Implementation Status and Key Decisions Following the Program restructuring, approved by the World Bank management on June 16, 2023, there has been significant progress in the implementation pace. This includes achievement of three additional Disbursement Linked Results since February 2024 (for a total of 25 achieved DLRs to date) and an uptick in the disbursement rate (from 51 percent to 71 percent). The revised Program implementation plan is on track, with prospects of achieving additional DLRs and further improving the Program disbursements by end-June 2024. Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P167491 IDA-63680 Effective USD 100.00 100.00 0.00 70.31 27.89 72% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P167491 IDA-63680 Effective 01-Mar-2019 27-Jun-2019 03-Jul-2019 30-Jun-2024 28-Feb-2026 DLI Disbursement Achievement Disbursed amount in Disbursement % for DLI ID DLI Type Description Coc DLI Amount Status Coc DLI Loan: IDA63680-001 4/26/2024 Page 1 of 17 The World Bank Implementation Status & Results Report Bangladesh Strengthening PFM Program to Enable Service Delivery (P167491) DLI1 Use of Imp Fis Proj Partially 1 Regular XDR 7,250,000.00 3,987,500.00 55 % Bud Making Achieved DLI2 Imp Bud Align, Bttr Partially 2 Regular XDR 10,100,000.00 2,150,000.00 21 % Perf of BMCs Achieved DLI3 Red No of days DDO Partially 3 Regular XDR 4,350,000.00 4,350,000.00 100 % to rc budg inMDA Achieved DLI4 Rel Pymt of Sal, TSA Partially 4 Regular XDR 6,500,000.00 3,977,000.00 61 % Auto Pymnts Achieved DLI5 Impr Pen Ser Facili of 5 Regular XDR 7,250,000.00 Fully Achieved 7,250,000.00 100 % Pymnts EFT DLI6 SOE Auto Bod Debt Partially 6 Regular XDR 7,200,000.00 2,900,000.00 40 % Cont Liab Pol Mak Achieved DLI7 Impr Perf SOE Sec Partially 7 Regular XDR 5,800,000.00 1,450,000.00 25 % Red Subs Pc Total Achieved DLI8 Bud Hold MDA eff n Partially 8 Regular XDR 8,700,000.00 6,887,500.00 79 % trans use FI Achieved DLI9 Act tak Int Ext Audit Partially 9 Regular XDR 5,050,000.00 1,450,000.00 29 % in MMDAs, PP Achieved DLI10 PFM Action Plan Partially 10 Regular XDR 10,100,000.00 3,625,000.00 36 % Implementation Achieved Program Action Plan Ensuring establishment of the PECT and PITs (within three months of the Effective Date) and that these are Action Description maintained throughout the Program implementation Source DLI# Responsibility Timing Timing Value Status Technical Finance Division Recurrent Continuous Completed Completion Measurement PECT and PITs are in place throughout the Program implementation Comments Eight Program Executive and Coordinators (PECs) are in place as of April 2024. Action Description Strengthen IPF as PFM Learning Hub by recruiting three permanent staff within six months of the Effective Date Source DLI# Responsibility Timing Timing Value Status Technical Finance Division Recurrent Continuous Completed Completion Measurement IPF strengthened with the addition of three permanent staffs Comments The IPF has appointed more than three permanent staffs Action Description DLI technical notes are reviewed and amended from time to time in consultation with the Bank Source DLI# Responsibility Timing Timing Value Status Technical Finance Division Recurrent Yearly Completed 4/26/2024 Page 2 of 17 The World Bank Implementation Status & Results Report Bangladesh Strengthening PFM Program to Enable Service Delivery (P167491) Completion Measurement DLI technical notes are periodically updated, in consultation with the Bank team. Comments DLI technical notes are being updated based on lessons learnt at mid-point and to reflect course correction. Arrange DLI verification by the OC&AG, the Cabinet Division and through a third-party verification agent (to be Action Description appointed no later than 3 months after the Effective Date) Source DLI# Responsibility Timing Timing Value Status Technical Finance Division Recurrent Yearly In Progress Completion Measurement Submission of DLI verification reports acceptable to the Bank and disbursement completed. FD has received five verification reports from Office of Comptroller and Auditor Comments General (OCAG) ,Seven reports from PricewaterhouseCoopers (PwC) and one from Cabinet Division. Assign separate organizational budget codes to the FD wings responsible for Program implementation (macro- Action Description economic, SOE, Debt, Expenditure etc.) to enhance managerial accountability of funds allocated to deliver on the specific DLI schemes Source DLI# Responsibility Timing Timing Value Status Fiduciary Systems Finance Division Due Date 30-Jun-2019 Completed Completion Measurement The Program budget for FY20 be distributed by FD wings Under code 10901 for Secretariat, Finance Division, there is a specific code [3200002] for overall Program with Comments scheme-wise separate organizational/implementation unit budget codes assigned. Program to use the separate standard document for procurement of permitted works through e-GP system, which Action Description does not have the provision of rejecting bids based on above/lower than the estimated cost Source DLI# Responsibility Timing Timing Value Status Fiduciary Systems Finance Division Recurrent Continuous In Progress Completion Measurement eGP used for all Program procurements There aren't any new works under the program. Use of specific documents will be ensured in case of any Comments rehabilitation work. Regular procurement of operational items such as computer equipment, printing materials are done through eGP. For each bid/proposal under the Program, form Bid/Proposal evaluation committees consisting of members with the Action Description appropriate knowledge and experience of procurement of similar goods/services Source DLI# Responsibility Timing Timing Value Status Fiduciary Systems Finance Division Recurrent Continuous In Progress Completion Measurement Procurement committees are suitably qualified/experienced 4/26/2024 Page 3 of 17 The World Bank Implementation Status & Results Report Bangladesh Strengthening PFM Program to Enable Service Delivery (P167491) Procurement committee includes experienced staff members. Some procurement packages have been prepared and Comments published for all DLIs). Action Description Assign one trained Government official as procurement focal point within six months of Effective Date Source DLI# Responsibility Timing Timing Value Status Fiduciary Systems Finance Division Recurrent Continuous In Progress Completion Measurement Trained officer designated as the Procurement Focal Point Procurement cell established and a procurement specialist has been supporting. Two junior consultants and the Comments evaluation committees for the procurement process have been notified. In addition, one PEC is assigned as procurement focal point. Action Description Maintain a publicly accessible website where all disclosable procurement data will be available and regularly updated Source DLI# Responsibility Timing Timing Value Status Fiduciary Systems PECT Recurrent Continuous In Progress Completion Measurement Website with disclosable procurement data Publicly accessible Program website (http://www.spfms.gov.bd/forms/form/1/-) with different procurement sections Comments was launched in January 2021. Annual procurement plan is uploaded in the website and needs to be updated with the latest procurement data Action Description FD seeks the advice of environmental and social expert(s) for the Program, as needed for Program activities Source DLI# Responsibility Timing Timing Value Status Environmental and Social Finance Division Recurrent Continuous Not Yet Due Systems Completion Measurement Either in-house capacity built or assistance sought from IMED Comments So far no need seems to be has arisen, but the Bank team will speak with PECT on this. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Substantial Substantial Substantial Macroeconomic Moderate Moderate Moderate Sector Strategies and Policies Moderate Moderate Moderate 4/26/2024 Page 4 of 17 The World Bank Implementation Status & Results Report Bangladesh Strengthening PFM Program to Enable Service Delivery (P167491) Technical Design of Project or Program Moderate Moderate Moderate Institutional Capacity for Implementation and Moderate Moderate Moderate Sustainability Fiduciary Substantial Substantial Substantial Environment and Social Low Low Low Stakeholders Moderate Moderate Moderate Other -- -- -- Overall Moderate Substantial Substantial Results PDO Indicators by Objectives / Outcomes Improve fiscal forecasting and resource allocation consistent with Government priorities IN01421014 ►Use of improved fiscal projections for budget-making (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Yes Yes Yes Date 01-Oct-2018 17-Oct-2023 18-Apr-2024 28-Feb-2026 Comments IN01421015 ►Improved budget alignment with development strategy through better performance of BMCs (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 29.25 Date 01-Oct-2018 17-Oct-2023 18-Apr-2024 28-Feb-2026 Comments IN01421096 ►Reduced number of days for DDOs to receive budget in selected MDAs (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 94.28 94.28 80.00 Date 01-Oct-2018 17-Oct-2023 18-Apr-2024 28-Feb-2026 Comments Improve budget execution in service delivery MDAs IN01421012 ►Timely and reliable payments of salaries and vendor invoices with a strengthened TSA and automated payment system (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target 4/26/2024 Page 5 of 17 The World Bank Implementation Status & Results Report Bangladesh Strengthening PFM Program to Enable Service Delivery (P167491) (i) Using the newly (i) Using the newly developed online developed online system, system, bank account bank account information information has been has been entered for entered 27,850 government for55675government offices (out of 106,444 offices (out of 106,444 - 50% EFT EFT used for officers’ government offices), government offices), - 40% DDOs salaries only. No online totaling 110,922 bank totaling 110,922 bank submitting online bills bills submission. Stock accounts; and (iii) the accounts; and (iii) the - Number of new Value take of special accounts & bills for 98 percent pay bills for 98 percent pay (outside TSA) special EBFs will be done. and allowances, 98 and allowances, 98 accounts opened percent pension percent pension annually reduced by payments and almost 80 payments and almost 50% percent Social Safety Net 80 percent Social payments are submitted Safety Net payments online and made through are submitted online Electronic Fund Transfer and made through (EFT). Electronic Fund Transfer (EFT). Date 01-Oct-2018 17-Oct-2023 18-Apr-2024 28-Feb-2026 Comments Promote enhanced transparency of the budget execution and enable timely accountability IN01421013 ►Budget holders in selected MDAs effectively and transparently use financial information (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 100.00 100.00 50.00 Date 01-Oct-2018 17-Oct-2023 18-Apr-2024 28-Feb-2026 Comments Intermediate Results Indicators by Results Areas Improve budget execution in service delivery MDAs IN01421097 ►SOE and autonomous bodies’ debt and contingent liabilities statement prepared and submitted to appropriate authority (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target FD conducted several FD conducted several - Policy and rounds of focused rounds of focused procedures to regulate - SOE debt and contingent trainings for SOEs on trainings for SOEs on SOEs’ debt and liabilities are not disclosure of Debt and disclosure of Debt and contingent liabilities effectively controlled Contingent Liabilities Contingent Liabilities (including an upgraded - Partial data of SOEs (DCL) and pre-requisite (DCL) and pre-requisite framework for profitability published in information for SOE information for SOE reporting by SOEs to Value the annual Economic database. The first-cut database. The first-cut the Finance Division) Survey of Bangladesh DCL statements, based DCL statements, based have been drafted and - Fiscal risks assessments on FY22 data for 50 on FY22 data for 50 issued by MoF. have not been conducted SOEs, are expected to SOEs, have been - 100 SOEs and be prepared by October completed and autonomous bodies 31, 2023. preparation of rest 50 have published their SOEs are underway. audited financial 4/26/2024 Page 6 of 17 The World Bank Implementation Status & Results Report Bangladesh Strengthening PFM Program to Enable Service Delivery (P167491) statements (covering the relevant Fiscal Year for which the DLR is being assessed). - SOE debt and contingent liabilities statement (covering the relevant Fiscal Year for which the DLR is being assessed) has been prepared by MoF for all SOEs and submitted to appropriate authority. Date 01-Oct-2018 17-Oct-2023 18-Apr-2024 28-Feb-2026 Comments IN01421100 ►Improved performance, reporting, and public disclosure of the SOEs/ABs (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target - SOE performance evaluation guidelines have been developed by the Finance Division, with clear scoring criteria. - A policy and SOE performance procedures manual for evaluation guidelines property, plant, have been developed SOEs are not classified as equipment and other by the Finance Division, commercial and non- SOE performance assets that enables to with clear scoring commercial. evaluation guidelines ensure the quality of criteria. Several SOEs There is some have been developed by management and have undergone an performance monitoring of the Finance Division, with accounting procedure independent SOEs, but not systematic clear scoring criteria. has been drafted and performance evaluation, and independent. Several SOEs have issued by the Finance in accordance with the Value Grants to SOEs are not undergone an Division. SOE performance divided into different independent - At least 10 SOEs evaluation guidelines categories. performance evaluation, have undergone an developed. Partial data of SOEs in accordance with the independent Performance evaluation profitability published in SOE performance performance of ten SOEs have also the annual Economic evaluation guidelines evaluation, in been completed in Survey of Bangladesh. developed. accordance with the accordance with the SOE performance SOE performance evaluation guidelines evaluation guidelines developed. developed. - Turnaround strategies have been developed for the identified underperforming SOEs. Date 01-Oct-2018 17-Oct-2023 18-Apr-2024 28-Feb-2026 Comments 4/26/2024 Page 7 of 17 The World Bank Implementation Status & Results Report Bangladesh Strengthening PFM Program to Enable Service Delivery (P167491) Promote enhanced transparency of the budget execution and enable timely accountability IN01421098 ►Improved Pension Service (disaggregated by gender) through facilitation of payments through EFT no later than the pension payment cycle following retirement (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target - The GP Fund Module and the Pension Service Module of iBAS++ have been implemented and are operational. - A centralized pension roll with EFT payment capability has been The backlog of delayed The backlog of delayed - Long process often established and is pension cases has been pension cases has been results in a significant operational. reduced by 89 percent reduced by 89 percent delay after retirement to - A government-wide (out of 744 cases in (out of 744 cases in prepare a Pension annual GPF and 2020). The pension Call 2020). The pension Call Value Payment Order Pension Service report Center and grievance Center and grievance - All pension and GP fund has been produced. handling mechanism are handling mechanism records are manual and - The number of cases fully functional and are fully functional and prone to human errors of delayed pension receive high regards by receive high regards by payments is reduced the pensioners. the pensioners. by 50%. - 90% of new pensioners are paid through EFT no later than the pension payment cycle following their retirement. Date 01-Nov-2018 17-Oct-2023 18-Apr-2024 28-Feb-2026 Comments IN01421101 ►Action taken on internal and external audit reports in Selected MDAs and post-procurement reviews in the Finance Division (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target -The Internal Audit -The Internal Audit - The Model Internal Charter and Manual have Charter and Manual Audit Charter and the been finalized and have been finalized and Risk-based Internal approved by the Senior approved by the Senior Audit Manual have Secretary, Finance. Secretary, Finance. been issued by the -Five view exchange -Five view exchange Finance Division. meetings were meetings were - A system for annual Internal audit units are not conducted in the conducted in the procurement planning effective. individual department individual department and post-review has Internal audit activities with the officials of the with the officials of the been established by Value consist primarily of ex-post selected high spending selected high spending the Finance Division reviews focused on Ministries i.e., PWD, Ministries i.e., PWD, and training on the financial compliance. RHD, LGED, DGHS, and RHD, LGED, DGHS, system has been DPE. The topics of the and DPE. The topics of conducted. meetings covered the the meetings covered - Internal audit reports, existing system of the existing system of prepared in internal audit, the present internal audit, the accordance with the status of internal audit in present status of Model Internal Audit the departments, future internal audit in the Charter and the Risk- action plans for the departments, future based Internal Audit 4/26/2024 Page 8 of 17 The World Bank Implementation Status & Results Report Bangladesh Strengthening PFM Program to Enable Service Delivery (P167491) internal audit system, etc. action plans for the Manual issued, have Sr. Consultants had internal audit system, been issued to the submitted five separate etc. Sr. Consultants had heads of departments study reports to the PIT. submitted five separate and principal -From March 9, 2022, to study reports to the PIT. accounting officers of March 29, 2022, training -From March 9, 2022, to any two departments on Risk-based Internal March 29, 2022, training in any of the Selected Audit for Government on Risk-based Internal MDAs. officials was conducted. Audit for Government The relevant Internal This training was jointly officials was conducted. Audit Committees organized by the scheme This training was jointly (IAC) of Ministries/ on Internal Audit and organized by the Divisions prepares an Audit Follow-up and the scheme on Internal action plan to resolve Institute of Internal Audit and Audit Follow- at least 25% of: Auditors Bangladesh up and the Institute of I. Internal audit (IIAB). This training was Internal Auditors observations of the designed especially for Bangladesh (IIAB). This report of two selected the selected 05(five) training was designed departments high-spending MDAs especially for the and (Ministries/ Departments/ selected 05(five) high- II. Procurement Agencies) and Finance spending MDAs post-review findings of Division. MDAs are (Ministries/ SPFMS program of LGED, PWD, RHD, Departments/ Agencies) Finance Division. DGHS, DPE, and FD. and Finance Division. - Senior Consultant MDAs are LGED, PWD, (Procurement) has RHD, DGHS, DPE, and conducted the FD. procurement post review - Senior Consultant of 07 schemes under the (Procurement) has SPFMS program for the conducted the FY2019-20 and 2020-21 procurement post from March 2022 under review of 07 schemes the supervision of the PIT under the SPFMS Head and PEC of IA program for the scheme. The PPR report FY2019-20 and 2020- has already been 21 from March 2022 prepared and shared with under the supervision of the respective schemes. the PIT Head and PEC of IA scheme. The PPR report has already been prepared and shared with the respective schemes. Date 01-Oct-2018 12-Apr-2023 18-Apr-2024 28-Feb-2026 Comments Establish an enabling environment for improved PFM outcomes IN01421099 ►PFM Action Plan implementation is effectively led through an adequate governance structure and an effective change management approach (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target (i) PECT prepared and (i) PECT prepared and PFM reform - Two PFM Action published eight semi- published eight semi- implementation, Plan progress reports annual progress reports; annual progress monitoring, and course- (prepared on a semi- (ii) final report of reports; (ii) final report Value correction are not annual basis) have research paper-1 has of research paper-1 has adequately coordinated, been submitted by the been submitted by the been submitted by the and a comprehensive PECT to the Steering Bangladesh Institute of Bangladesh Institute of change management Committee. Governance Governance 4/26/2024 Page 9 of 17 The World Bank Implementation Status & Results Report Bangladesh Strengthening PFM Program to Enable Service Delivery (P167491) approach needs to be Management (BIGM) and Management (BIGM) - Two PFM Action implemented stakeholders’ and stakeholders’ Plan stakeholder consultation is expected consultation is expected retreats conducted to by October 31, 2023; and by June 2024; and (iii) review the respective (iii) inception report on inception report on semi-annual PFM research paper-2 has research paper-2 has Action Plan progress been submitted by been submitted by reports prepared under Bangladesh Institute of Bangladesh Institute of DLR 10.1. Bank Management Bank Management - The PFM Learning (BIBM). For research (BIBM). For research Hub has produced at paper-3, data collection paper-3, data collection least 3 research is ongoing, and the is ongoing, and the papers on PFM reform research is expected to research is expected to lessons and published be completed by March be completed by June the said reports 2024. Roadmap has 2024. Roadmap has through its website. been developed to been developed to - 6 field inspections to strengthen IPF and strengthen IPF and government service elevate it to a center of elevate it to a center of delivery centers to excellence with excellence with identify PFM-related repository of all PFM repository of all PFM issues have been reform-related records. reform-related records. carried out. - The PECT has prepared a report evaluating the performance of coaches, facilitators and/or implementation support consultants engaged to support the implementation of the PFM Action Plan. - 100 civil servants (with data disaggregated by gender) have completed specialized PFM-related courses/certifications. Date 01-Oct-2018 17-Oct-2023 18-Apr-2024 28-Feb-2026 Comments Disbursement Linked Indicators DLI_IND_TABLE ►DLI 1 Use of improved fiscal projections for budget-making (Outcome, 10,000,000.00, 35%) Baseline Actual (Previous) Actual (Current) FY2026 One DLR (DLR 1.1) has Two (DLR 1.1 and 1.2) been achieved, verified out of five DLRs have and disbursed, one DLR been fully achieved, (DLR 1.3) has been verified and disbursed, Static revenue and partially achieved and one DLR (DLR 1.3) has expenditure estimates Value disbursed, one DLR been partially achieved -- restrict effective policy (DLR 1.2) has been and disbursed, , and the making. achieved, verified and is other two DLRs (DLR 1.4 pending disbursement, and 1.5) are in progress and the other two DLRs and on track for (DLR 1.4 and 1.5) are in achievement by June 30, 4/26/2024 Page 10 of 17 The World Bank Implementation Status & Results Report Bangladesh Strengthening PFM Program to Enable Service Delivery (P167491) progress and on track for 2024. It is expected that achievement by June 30, DLR 1.4 will be achieved 2024. It is expected that upon organizing a training DLR 1.4 will be achieved session for Macro-fiscal upon organizing a Model (MFMOD), which training session for will lead towards Macro-fiscal Model publication of the macro (MFMOD), which will forecasts in the budget lead towards publication announcements of June of the macro forecasts in 2024. The publication of a the budget Debt Sustainability announcements of June Analysis (DSA) is awaiting 2024. The publication of approval from the Minister a Debt Sustainability of Finance. The Treasury Analysis (DSA) is and Debt Management awaiting approval from Wing has expressed the Minister of Finance. interest in publishing the The Treasury and Debt Medium-term Debt Management Wing has Strategy (MTDS) on a expressed interest in regular basis and asked publishing the Medium- for future trainings. term Debt Strategy (MTDS) on a regular basis and asked for future trainings. Date -- 17-Oct-2023 18-Apr-2024 -- Comments ►DLI 2 Improved budget alignment with development strategy and gender, social, and climate considerations through better performance of BMCs (Outcome, 14,000,000.00, 21%) Baseline Actual (Previous) Actual (Current) FY2026 Value BMCs are not fully Among the five DLRs, Among the five DLRs, one DLR 2.5: The functional and require one DLR (DLR 2.1) has DLR (DLR 2.1) has been Recipient’s additional capacity and been successfully successfully achieved, expenditure on empowerment. Gender achieved, verified and verified and disbursed. Social Sectors has disaggregated budget disbursed. DLR 2.3 has The remaining DLRs are increased to 29.25% summary is produced. been achieved and the in progress. Some of the of total actual public Average spending on the verification process for key achievements include: expenditure (in the Social Infrastructure for last disbursement is ongoing. (i) peer-review monitoring relevant Fiscal Year two years is 28.87%. The remaining DLRs are of BMC for selected ten in which the DLR is in progress. Some of the Ministries, Departments being assessed). key achievements and Agencies (MDAs, include: (i) peer-review DLR 2.2) is about to be monitoring of BMC for launched and should be selected ten Ministries, completed by June 2024; Departments and and (ii) capacity building of Agencies (MDAs, DLR BMCs and Budget 2.2) is about to be Working Group (BWGs) is launched and should be in progress and, overall, completed by June 2024; 12 internal trainings, 15 and (ii) capacity building workshops and three of BMCs and Budget foreign trainings have Working Group (BWGs) been arranged. is in progress and, Achievement of DLR 2.4 overall, 12 internal and DLR 2.5 will take at trainings, 15 workshops least one more year, as and three foreign these DLRs are trainings have been respectively dependent on arranged. Achievement 4/26/2024 Page 11 of 17 The World Bank Implementation Status & Results Report Bangladesh Strengthening PFM Program to Enable Service Delivery (P167491) of DLR 2.4 and DLR 2.5 achievement of DLR 2.2 will take at least one and DLR 2.3. more year, as these DLRs are respectively dependent on achievement of DLR 2.2 and DLR 2.3. Date -- 17-Oct-2023 18-Apr-2024 -- Comments ►DLI 3 Reduced number of days for DDOs to receive budget in selected MDAs (Outcome, 6,000,000.00, 84%) Baseline Actual (Previous) Actual (Current) FY2026 Out of two DLRs, one The two DLRs (DLR 3.1 has been fully achieved, and 3.2) have been fully verified and disbursed achieved, verified and (DLR 3.1), while the disbursed. FD has remaining one (DLR 3.2) successfully de-linked the Currently the budget is also fully achieved, budget releases from the release and distribution to verified and pending for fund utilization report DDOs takes around 2 disbursement. Some of submission. months for the first quarter. the key achievements Some of the key Budget release from the include: (i) 94.28 percent achievements include: (i) MoF to line ministry is no Value of DDOs have had their 94.28 percent of DDOs -- longer required from this budget released and have had their budget year. Average budget distributed against the released and distributed release delay for quarter 3 targeted of 80 percent by against the targeted of 80 and 4 is 2.3 months for July 31, 2023; and (ii) percent by July 31, 2023; health sector system-generated report- and (ii) system-generated producing tab for DDO to report-producing tab for ensure effective tracking DDO to ensure effective of fund release status of tracking of fund release respective MDAs is in status of respective MDAs progress. is in progress. Date -- 17-Oct-2023 18-Apr-2024 -- Comments ►DLI 4 Timely and reliable payments of salaries and vendor invoices with a strengthened TSA and automated payment system (Outcome, 9,000,000.00, 23%) Baseline Actual (Previous) Actual (Current) FY2026 Value EFT used for officers’ Out of four DLRs, one Out of four DLRs, two DLR 4.4: The salaries only has been partially DLRs (DLR 4.2 and 4.3) number of Closed No online bills submission achieved and disbursed have been fully achieved projects, Dormant (DLR 4.2), two have and disbursed, and DLR and Inactive Bank been fully and one 4.1 is partially achieved accounts will be partially achieved, and and disbursed (25 determined and disbursement is being percent), and DLR 4.4 is reduced by 50% processed (DLR 4.2, 4.3 in progress. and 4.1), and one DLR is Some of the key in progress (DLR 4.4). achievements include: (i) Some of the key using the newly developed achievements include: (i) online system, bank using the newly account information has developed online system, been entered for 27,850 4/26/2024 Page 12 of 17 The World Bank Implementation Status & Results Report Bangladesh Strengthening PFM Program to Enable Service Delivery (P167491) bank account information government offices (out of has been entered for 106,444 government 27,850 government offices), totaling 110,922 offices (out of 106,444 bank accounts (DLR 4.1); government offices), and (iii) the bills for 98 totaling 110,922 bank percent pay and accounts (DLR 4.1); and allowances, 98 percent (iii) the bills for 98 pension payments and percent pay and almost 80 percent Social allowances, 98 percent Safety Net payments are pension payments and submitted online and almost 80 percent Social made through Electronic Safety Net payments are Fund Transfer (EFT, DLR submitted online and 4.2 and 4.3). made through Electronic Fund Transfer (EFT, DLR 4.2 and 4.3). Date -- 17-Oct-2023 18-Apr-2024 -- Comments ►DLI 5 Improved Pension Service (disaggregated by gender) through facilitation of payments through EFT no later than the pension payment cycle following retirement (Outcome, 10,000,000.00, 90%) Baseline Actual (Previous) Actual (Current) FY2026 Long process often results in a significant delay after retirement to prepare a All respective DLRs have All respective DLRs have Pension Payment Order Value been fully achieved and been fully achieved and -- All pension and GP fund disbursed. disbursed. records are manual and prone to human errors Date -- 17-Oct-2023 18-Apr-2024 -- Comments ►DLI 6 SOE and autonomous bodies’ debt and contingent liabilities statement prepared and submitted to appropriate authority (Output, 10,000,000.00, 32%) Baseline Actual (Previous) Actual (Current) FY2026 Out of three DLRs, two DLR 6.4: An Out of three DLRs, two DLRs (DLR 6.1 and 6.2) integrated database DLRs (DLR 6.1 and 6.2) - SOE debt and contingent have been fully achieved, developed for have been fully and DLR liabilities are not effectively verified and disbursed. SOEs/ABs with 6.3 has been partially controlled FD conducted several financial and non- achieved, verified and - Partial data of SOEs rounds of focused financial information disbursed. FD conducted profitability published in the trainings for SOEs on and interfaced Value several rounds of focused annual Economic Survey of disclosure of Debt and through API trainings for SOEs on Bangladesh Contingent Liabilities (Application disclosure of Debt and - Fiscal risk assessments (DCL) and pre-requisite Programming Contingent Liabilities have not been conducted information for SOE Interface) with (DCL) and pre-requisite database. DLR 6.3 is iBAS++ with piloting information for SOE expected to be achieved of at least two SOEs database. by October 31, 2023. and ABs Date -- 17-Oct-2023 18-Apr-2024 -- 4/26/2024 Page 13 of 17 The World Bank Implementation Status & Results Report Bangladesh Strengthening PFM Program to Enable Service Delivery (P167491) Comments ►DLI 7 Improved performance, reporting, and public disclosure of the SOEs/ABs (Outcome, 8,000,000.00, 25%) Baseline Actual (Previous) Actual (Current) FY2026 Out of five DLRs, one DLR (DLR 7.1) was achieved, verified and disbursed, while the rest are in progress Disbursements for DLR 7.3 (independent performance evaluation, has been submitted for - SOEs are not classified as IVA verification) and 7.4 commercial and non- (performance commercial DLR 7.4: improvement strategy) are - There is some Performance Out of five DLRs, one expected to take place by performance monitoring of Improvement DLR (DLR 7.1) was June 30, 2024. In addition, SOEs, but not systematic Strategies have achieved, verified and DLR 7.2 on preparation of and independent been developed for disbursed, while the rest property, plant and Value - Grants to SOEs are not Under-performing are in progress. Partial equipment manual is divided into different SOEs/ABs based on disbursement for DLR expected to be achieved categories the performance 7.3 is expected by by December 31, 2024, - Partial data of SOEs evaluations December 31, 2023. which will result in profitability published in the mentioned in DLR disbursement of US$1 annual Economic Survey of 7.3 million. The Mission Bangladesh recommends that a stakeholders’ consultation workshop is organized to recognize well-performing SOEs and prepare a comprehensive roadmap for the implementation of PFM reform initiatives included in the PFM Action Plan. Date -- 17-Oct-2023 18-Apr-2024 -- Comments ►DLI 8 Budget holders in MDAs effectively and transparently use financial information (Outcome, 12,000,000.00, 57%) Baseline Actual (Previous) Actual (Current) FY2026 Value -The previous classification Out of six DLRs, two Out of six DLRs, four were DLR 8.6: 10 iBAS++ chart limits financial were fully achieved, fully achieved, verified and reports are reporting and analysis; and verified and disbursed disbursed (DLR 8.1,8.2, developed and budget controllers do not (DLR 8.1 and 8.4), two 8.4 and 8.6), one was made available in use financial reports were achieved and partially achieved and iBAS++ system for effectively submitted to WB for disbursed (DLR 8,5), and budget execution -As at June 2018, the disbursements (DLR 8.2 the last one (DLR 8.3) has decisions monthly report (in pdf. and 8.6), one was been submitted for the format) on fiscal position partially achieved and verification of partial available on FD website disbursed (DLR 8,5), and achievement. Key was for December 2017 the last one (DLR 8.3) is achievements include: (i) (six months behind). in progress. Key the backlog of finance achievements include: (i) accounts from FY17-18 to 4/26/2024 Page 14 of 17 The World Bank Implementation Status & Results Report Bangladesh Strengthening PFM Program to Enable Service Delivery (P167491) -Annual Accounts are the backlog of finance FY20-21 has been produced with a significant accounts from FY17-18 cleared; (ii) audit of these delay and follow the old to FY20-21 has been reports has also been templates of finance and cleared; (ii) audit of these completed; and (iii) appropriation accounts reports has also been International Public Sector completed; and (iii) Accounting Standards International Public (IPSAS)-compliant finance Sector Accounting and appropriation Standards (IPSAS)- accounts format (for Civil, compliant finance and Defense, Post, and appropriation accounts Railway) has already been format (for Civil, Defense, developed. Post, and Railway) has Finance Accounts of already been developed. FY22-23 has been The FY21-22 finance submitted to the Office of accounts are underway. the Comptroller and Auditor General within the prescribed timeline of six months from the year end using data from iBAS++. Date -- 17-Oct-2023 18-Apr-2024 -- Comments ►DLI 9 Action taken on internal and external audit reports in Selected MDAs and post-procurement reviews in the Finance Division (Output, 7,000,000.00, 0%) Baseline Actual (Previous) Actual (Current) FY2026 Value -Internal audit units are not Two DLRs (DLR 9.1 and Two DLRs (DLR 9.1 and DLR 9.4: The effective. 9.2) have been achieved, 9.2) have been achieved, relevant Internal -Internal audit activities verified and disbursed, verified and disbursed, Audit Committees consist primarily of ex-post while the other two DLRs while the other two DLRs (IAC) of Ministries/ reviews focused on (DLR 9.3 and 9.4) are in (DLR 9.3 and 9.4) are in Divisions prepares financial compliance progress. Key progress. Key an action plan to -Audit follow-up takes long achievements include: (i) achievements include: (i) resolve at least 25% time preparation of Model preparation of Model of: Internal Audit Charter Internal Audit Charter and I. Internal and Risk-based Internal Risk-based Internal Audit audit observations of Audit Manual; (ii) Manual; (ii) Department of the report of two Department of Primary Primary Education (DPE) selected Education (DPE) and and Roads and Highways departments Roads and Highways Department (RHD) have and Department (RHD) have been selected for internal II. been selected for internal audit execution and Procureme audit execution and reporting; (iii) the Program nt post-review reporting; (iii) the has commenced the findings of SPFMS Program has recruitment process for an program of Finance commenced the audit firm which will Division recruitment process for provide training to these an audit firm which will two departments on provide training to these internal audit and guide two departments on them in conducting the internal audit and guide first round of internal audit; them in conducting the (iv) risk assessment of first round of internal remaining five audit; (iv) risk departments to execute assessment of remaining Internal Audit Charter and five departments to Manual has been execute Internal Audit completed; (v) annual Charter and Manual has procurement plan been completed; (v) published; and (vi) Post 4/26/2024 Page 15 of 17 The World Bank Implementation Status & Results Report Bangladesh Strengthening PFM Program to Enable Service Delivery (P167491) annual procurement plan Procurement Review published; and (vi) Post (PPR) of 2020-2021is Procurement Review completed and in the (PPR) of 2020-2021is process of approval. To completed and in the achieve DLR 9.4, which is process of approval. To contingent on DLI 9.3, achieve DLR 9.4, which necessary steps should be is contingent on DLI 9.3, taken to establish the necessary steps should Internal Audit Committees be taken to establish the (IACs) in respective Internal Audit MDAs. Committees (IACs) in respective MDAs. Date -- 17-Oct-2023 18-Apr-2024 -- Comments ►DLI 10 PFM Action Plan implementation is effectively led through an adequate governance structure and an effective change management approach (Output, 14,000,000.00, 29%) Baseline Actual (Previous) Actual (Current) FY2026 Out of six DLRs, two were achieved, verified and disbursed (DLR 10.1 and 10.4), and the rest are in progress. Some of the key achievements include: (i) PECT Out of six DLRs, three prepared and published were achieved, verified eight semi-annual and disbursed (DLR 10.1, progress reports; (ii) final 10.4 and 10.4), DLR 10.2 report of research paper- was fully achieved and is 1 has been submitted by pending verification., while the Bangladesh Institute DLR 10.3 is in progress. of Governance PFM training programs Management (BIGM) and DLR 10.6: (i.e., on IPSAS), in-country PFM reform stakeholders’ At least 100 civil and online, have been implementation, monitoring, consultation is expected servants (with data completed and counted and course-correction are by October 31, 2023; and disaggregated by towards the achievement not adequately coordinated, (iii) inception report on gender) have Value of DLR 10.6. On DLR and a comprehensive research paper-2 has completed 10.5, WB has already change management been submitted by specialized PFM arranged the support from approach needs to be Bangladesh Institute of related an international M&E implemented Bank Management courses/certification consultant for (BIBM). For research s development of a paper-3, data collection comprehensive M&E is ongoing, and the framework, to be research is expected to completed by end-June be completed by March 2024, with the first SPFMS 2024. The M&E report expected to implementation of DLR be published by August 10.6 can be expedited by 2024. developing and selecting relevant short courses and training programs for civil servants, while taking into consideration the gender balance of participants. 4/26/2024 Page 16 of 17 The World Bank Implementation Status & Results Report Bangladesh Strengthening PFM Program to Enable Service Delivery (P167491) Date -- 17-Oct-2023 18-Apr-2024 -- Automation of annual work plan process to ensure effective monitoring of the implementation progress. Comments Arrange for the 2nd PFM Action Plan stakeholder consultation. 4/26/2024 Page 17 of 17