The World Bank Implementation Status & Results Report Public Financial Management Reforms for Institutional Strengthening (P165000) Public Financial Management Reforms for Institutional Strengthening (P165000) WESTERN AND CENTRAL AFRICA | Liberia | Governance Global Practice | IBRD/IDA | Investment Project Financing | FY 2020 | Seq No: 9 | ARCHIVED on 06-Oct-2023 | ISR57450 | Implementing Agencies: Ministry of Finance and Development Planning, Republic of Liberia Key Dates Key Project Dates Bank Approval Date: 16-Jul-2019 Effectiveness Date: 01-Aug-2017 Planned Mid Term Review Date: 30-Sep-2021 Actual Mid-Term Review Date: 10-Sep-2021 Original Closing Date: 31-Oct-2024 Revised Closing Date: 31-Oct-2024 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The project development objective (PDO) is to improve domestic revenue mobilization systems, and strengthen financial control and accountability in public finances. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name 1: Enhancing DRM Sources and Systems:(Cost $8.00 M) 2: Stabilizing and Strengthening Performance of Financial Controls and Systems:(Cost $8.00 M) 3: Improving Public-Sector Capacity for Enhanced Oversight and Accountability:(Cost $2.82 M) 4: Improving Upstream and Downstream PFM Systems in Selected Sectors:(Cost $4.30 M) 5: Project Management:(Cost $2.49 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Unsatisfactory Overall Risk Rating Substantial Substantial Implementation Status and Key Decisions Progress toward the overall Project Development Objective (PDO) is rated Moderately Satisfactory. Implementation progress (IP) is, however, rated as Moderately unsatisfactory. During the period under review, the Government met some critical milestones, significant progress was made across all components, and the project is on track to achieve the Project Development Objectives. However, it was noted with concern that the users are not fully utilizing the reforms. For example, despite the Government's investments, the Electronic Funds System is not being used despite the system being ready, the 10/6/2023 Page 1 of 9 The World Bank Implementation Status & Results Report Public Financial Management Reforms for Institutional Strengthening (P165000) same as the Civil Servant Module (CSM) and the Donor Financed Projects (DFP) module. It is also disheartening to note that the Government does not have a PFM strategy to implement the PFM reforms in the country. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance High High High Macroeconomic Substantial Substantial Substantial Sector Strategies and Policies Substantial Substantial Substantial Technical Design of Project or Program Substantial Moderate Moderate Institutional Capacity for Implementation and Substantial Substantial Substantial Sustainability Fiduciary High Substantial Substantial Environment and Social Low Low Low Stakeholders Substantial Substantial Substantial Other -- -- -- Overall Substantial Substantial Substantial Results PDO Indicators by Objectives / Outcomes 1: Improved online on time filing for large and medium taxpayers IN01329142 ►ITAS Online, on time, large and medium taxpayer filing ratio for income tax, excise tax , and Goods and Services Tax (GST) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 20.00 60.00 55.00 Date 29-Nov-2018 01-May-2023 30-Jun-2023 21-Oct-2024 Over 5,544 taxpayers have used the LITAS, and about 14,843 tax returns were filed for large and medium taxpayers, and a total of US$201.8 million was paid through the system to file and pay Income, GST, and Excise taxes. 55%, 54%, and 70% of corporate income, Goods and Services, and Excise taxpayers filed Comments: tax returns for 2022 quarter IV (Oct–Dec) and 2023 quarter I (Jan – Mar), respectively. The average of these numbers is 60%, and that means the end-of-project target of 55% has been exceeded. 10/6/2023 Page 2 of 9 The World Bank Implementation Status & Results Report Public Financial Management Reforms for Institutional Strengthening (P165000) 2: Increased use of IFMIS in PFM and implementation of e-Procurement IN01328865 ►MACs submitting to CAG quarterly financial statements using IFMIS data in a timely fashion (within 15 working days from end of quarter) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 25.00 55.00 67.00 79.00 Date 18-Apr-2018 31-Mar-2023 30-Jun-2023 21-Oct-2024 The end target of 79% represents the percentage of MACs on IFMIS. Progress could be faster and perform better. 63 MACs reported on time for the quarter ended Dec 31, 2022, 69 for March 31, 2023, and Comments: 67 for June 30, 2023. Th e current data is 24 short of the Year 4 target of 91 and 29 short of the end-of- project target of 96 MACs (90% of 107 MACs). 3: Improved timeliness in review of audited reports of Government accounts IN01329141 ►Frequency of PAC follow-up through GAC on implementation of annual performance audit observations and recommendations (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 4.00 4.00 10.00 Date 29-Nov-2018 01-May-2023 30-Jun-2023 20-Oct-2024 The unit formed at GAC is working on the audit recommendation follow-ups and has met several MACs. A cons olid Comments: 2024. Intermediate Results Indicators by Components 1: Enhancing Domestic Revenue Mobilization Sources and Systems IN01329146 ►1: Online ITAS Filing Services available (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Yes Yes Yes Date 29-Nov-2018 01-May-2023 30-Jun-2023 20-Oct-2024 MET. The LITAS pilot went live at the headquarters in September 2022 and was extended to Buchanan in Comments: December of the same year. This milestone meets the 2022 go-live target. 2: Stabilizing and Strengthening Performance of Financial Controls and Systems IN01329143 10/6/2023 Page 3 of 9 The World Bank Implementation Status & Results Report Public Financial Management Reforms for Institutional Strengthening (P165000) ►2: IFMIS launched in 35 additional MACs (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 50.00 84.00 84.00 85.00 Date 18-Apr-2018 01-May-2023 30-Jun-2023 20-Oct-2024 MET. IFMIS is being launched in 34 additional MACs. EDMS is also being deployed in 24 MACs. Before the deployment, Local Area Network installation and upgrade for 84 MACs was completed, and dark fiber connectivity to 48 IFMIS MACs was completed. The remaining one is in the hard-to-reach area, with no internet and very low transactions areas, and will not be launched. The investment is not worth it for now. Comments: IN01329148 Number of MACs using the civil service module (CSM) (Number, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 29.00 IN01329149 ►3: Intermediate Indicator 3: e-Procurement modernization roadmap developed (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Yes Yes Yes Date 10-Jan-2019 01-May-2023 30-Jun-2023 20-Oct-2024 MET. The final copies of the e-GP Strategy, e-Catalogue, and Technical and Functional specifications have been delivered to the PPCC. Comments: IN01329152 ►E-procurement system functional in Ministries of Finance,Health and Education (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target The e-GP Strategy The e-GP Strategy and and the e-GP the e-GP Business, Business, technical technical and Functional and Functional No e-procurement Specifications were E-procurement system Specifications were Value system functional in the finalized. The bidding functional in the finalized. The bidding MFDP, MOE and MOH document was finalized, MFDP, MOE and MOH document was and Government will be finalized, and finalizing the Bidding Government will move evaluation report. to the next step. Date 10-Jan-2019 01-May-2023 30-Jun-2023 20-Oct-2024 The e-GP Strategy and the e-GP Business, technical and Functional Specifications were finalized. The bidding document was finalized, and Government will move to the next step. Comments: IN01329155 ►Professionalization of staff in MACs that are benefiting from the beneficiary proportion of which is female (number) (Number, Custom) 10/6/2023 Page 4 of 9 The World Bank Implementation Status & Results Report Public Financial Management Reforms for Institutional Strengthening (P165000) Baseline Actual (Previous) Actual (Current) End Target Value 1.00 3.00 4.00 5.00 Date 06-Sep-2021 01-May-2023 30-Jun-2023 31-Oct-2024 3: Improving Public-Sector Capacity for Enhanced Oversight and Accountability IN01329144 ►4: Number of MACs and government policies/programs subject to Performance Audit (Number) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 1.00 8.00 8.00 7.00 Date 18-Apr-2018 01-May-2023 30-Jun-2023 20-Oct-2024 MET. This target has been achieved. The GAC has published eight performance audit reports since. The reports are ( i) Collection & Disposal of Solid Waste in Monrovia, (ii) Custom Cargo Clearance Processes at the Sea Port and Land Borders, ( iii) Generation of Revenue from Artisanal Mining Activities in Liberia, (iv) Report on the Management of Prisons System in Liberia, (v) Report on the Road Maintenance and Comments: Rehabilitation in Liberia, (vi) Report on the Regulation of River S and Mining Activities in Liberia, (vii) Report on the Effectiveness of Government of Liberia's Response to COVID -19 and; (vii i)Report on the Adequate Procurement and Distribution of Medical Supplies. IN01329150 ►5: Number of citizens and CSO representatives that participate in annual budget discussions and are updated on the implementation of the year prior’s citizen recommendations to budget (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 235.00 367.00 350.00 Date 18-Apr-2018 01-May-2023 30-Jun-2023 21-Oct-2024 MET Pre-budget consultations were held in Montserrado, Nimba, Grand Bassa, Gbarpolu Counties on 5 of the 11 budget sectors (Transparency and Accountability, Health, Education, Social Development, Comments: Agriculture, & Security, and the Rule of Law) IN01329154 Citizen participating in annual budget discussions proportion of which is female (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 50.00 50.00 50.00 IN01329156 Citizens participating in annual budget discussions, proportion of which are from outside of Monrovia (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 40.00 67.00 40.00 4: Improving Upstream and Downstream PFM Systems in Selected Sectors IN01329145 ►DLI1: Increase the percentage of (a) County Facility Level and (b) County Health Team Levels submission of financial reports to MoH within ten (10) working days of the end of each quarter (Text, Custom) 10/6/2023 Page 5 of 9 The World Bank Implementation Status & Results Report Public Financial Management Reforms for Institutional Strengthening (P165000) Baseline Actual (Previous) Actual (Current) End Target Value 7%, 10% 90%100% 90%100% 94%, 90% Date 15-Apr-2019 30-Jun-2022 30-Jun-2023 30-Jun-2023 Between 47% and 73% of the 15 CHTs received quarterly allotments during 2022, and all those received were reported on time – thanks to the reporting software (Netsuite) available to all CHTs. The updates in Comments: the “actual” is a percent of the CHTs and County Facilities that received allotments during the year. IN01329147 ►DLI2 - Increase in percentage of MoH units that are Participating in Planning and Budgeting Processes (Percentage, Custom, PBC) Baseline Actual (Previous) Actual (Current) End Target Value 9.00 100.00 100.00 75.00 Date 19-Dec-2018 30-Jun-2022 30-Jun-2023 30-Jun-2023 Target has been exceeded 30 out of 30 Units, sections, and programs in the health sector participated in the FY 202 Comments: verification). IN01329151 ►DLI3: MoE HR Database checked and reconciled through verification of HR personnel records at the public schools (Text, Custom, PBC) Baseline Actual (Previous) Actual (Current) End Target MoE HR Database has At least 50% of the At least 75 not been checked and At least 50% of the public public schools have (cumulative) of the reconciled through schools have been Value been checked to vet public schools have verification of HR checked to vet personnel personnel data been checked to vet personnel records at the data [baseline 0%] [baseline 0%] personnel data public schools. Date 15-Apr-2019 30-Jun-2022 30-Jun-2023 30-Jun-2023 MoE reports personnel records of 50% of public schools were vetted. The report is subject to IVA Comments: verification. IN01329153 ►DLI4 - Improved Personnel Management of the education sector to improve teachers monitoring (Text, Custom, PBC) Baseline Actual (Previous) Actual (Current) End Target Conduct an analysis of Personnel Database at least 100 percent of No automated Personnel Database with with twelve (12) critical teachers’ payroll data reconciliation between twelve (12) critical fields fields and populated in public schools and Value HR databases for MoE; and populated using using existing data publish the CSA and the respective existing data was was achieved for Year consolidated results of public schools. achieved for Year One. One. the analysis on annual basis. Date 19-Dec-2018 30-Jun-2022 30-Jun-2023 30-Jun-2023 The Ministry submitted to the PMU a detailed report as proof that it analyzed at least 75% of teachers’ payroll data in public schools and published the consolidated analysis results. Subject to IVA verification, Comments: this report satisfies the target for the current year. 10/6/2023 Page 6 of 9 The World Bank Implementation Status & Results Report Public Financial Management Reforms for Institutional Strengthening (P165000) Performance-Based Conditions IN01329157 ►PBC 1 DLI1: Increase the percentage of (a) County and (b) County Heath Team level financial reports to MOH within ten (10) working days of the end of each quarter (Text, Outcome, 1,000,000.00, 0.00%) Baseline Actual (Previous) Actual (Current) June 30, 2023 Value 7%, 10% 90%,100% 90%,100% 94%, 90% Date -- 30-Jun-2022 30-Jun-2022 -- IN01329158 ►PBC 2 DLI2 - Increase in percentage of MoH units that are Participating in Planning and Budgeting Processes (Percentage, Intermediate Outcome, 1,000,000.00, 0.00%) Baseline Actual (Previous) Actual (Current) June 30, 2023 Value 9.00 100.00 100.00 -- Date -- 30-Jun-2022 30-Jun-2023 -- IN01329159 ►PBC 3 DLI3: MoE HR Database checked and reconciled through verification of HR personnel records at the public schools (Text, Outcome, 1,000,000.00, 0.47%) Baseline Actual (Previous) Actual (Current) June 30, 2023 MoE HR Database has not been checked and At least 50% of the public At least 50% of the public reconciled through schools have been schools have been Value -- verification of HR personnel checked to vet personnel checked to vet personnel records at the public data [baseline 0%] data [baseline 0%] schools. Date -- 30-Jun-2022 30-Jun-2023 -- IN01329160 ►PBC 4 DLI4 - Improved Personnel Management of the education sector to improve teachers monitoring (Text, Intermediate Outcome, 1,000,000.00, 0.47%) Baseline Actual (Previous) Actual (Current) June 30, 2023 No automated Personnel Database with Personnel Database with Value reconciliation between HR twelve (12) critical fields twelve (12) critical fields -- databases for MoE; CSA and populated using and populated using 10/6/2023 Page 7 of 9 The World Bank Implementation Status & Results Report Public Financial Management Reforms for Institutional Strengthening (P165000) and the respective public existing data was existing data was schools. achieved for Year One. achieved for Year One. Date -- 30-Jun-2022 30-Jun-2023 -- Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P165000 IDA-D5060 Effective USD 19.00 19.00 0.00 19.11 0.03 100% P165000 IDA-V1080 Closed USD 3.86 0.00 3.86 0.00 0.00 0% P165000 TF-B3178 Effective USD 1.99 1.99 0.00 1.99 0.00 100% P165000 TF-B8901 Effective USD 2.05 2.05 0.00 0.33 1.72 16% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P165000 IDA-D5060 Effective 16-Jul-2019 28-Aug-2019 15-Sep-2019 31-Oct-2024 31-Oct-2024 P165000 IDA-V1080 Closed 26-Jul-2017 01-Aug-2017 01-Aug-2017 01-May-2018 31-Oct-2019 P165000 TF-B3178 Effective 11-Aug-2020 04-Sep-2020 04-Sep-2020 31-Oct-2024 31-Oct-2024 P165000 TF-B8901 Effective 14-Jun-2022 15-Sep-2022 15-Sep-2022 31-Oct-2024 31-Oct-2024 Cumulative Disbursements 10/6/2023 Page 8 of 9 The World Bank Implementation Status & Results Report Public Financial Management Reforms for Institutional Strengthening (P165000) Restructuring History There has been no restructuring to date. Related Project(s) P172654-AF - Liberia: Public Financial Management Reforms for Institutional Strengthening ,P176779-Public Financial Management Reforms for Institutional Strengthening Project - AF 10/6/2023 Page 9 of 9