The World Bank Implementation Status & Results Report Project to Strengthen budget execution and financial reporting systems (P163131) Project to Strengthen budget execution and financial reporting systems (P163131) EAST ASIA AND PACIFIC | Marshall Islands | Governance Global Practice | IBRD/IDA | Investment Project Financing | FY 2018 | Seq No: 10 | ARCHIVED on 30-Oct-2023 | ISR58151 | Implementing Agencies: Ministry of Finance, The Republic of the Marshall Islands Key Dates Key Project Dates Bank Approval Date: 30-May-2018 Effectiveness Date: 01-Oct-2018 Planned Mid Term Review Date: 29-Oct-2021 Actual Mid-Term Review Date: 18-Oct-2021 Original Closing Date: 25-Sep-2023 Revised Closing Date: 25-Jun-2024 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The objective of the project is to improve the completeness, reliability and timeliness of Government’s annual financial statements, and the availability of reliable socioeconomic statistics. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Strengthening the Public Financial Management Environment:(Cost $0.50 M) Financial Management Information System (FMIS):(Cost $4.48 M) Change Management and Human Resource Development:(Cost $0.97 M) Household Income and Expenditure Survey (HIES) Implementation:(Cost $0.65 M) Project Management:(Cost $2.40 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Moderate Moderate Implementation Status and Key Decisions Since the March and April 2023 mission, there have been several notable progresses made in the project such as the preparation of the draft Procurement Regulations and Draft Procurement Capacity Building Plan, the completion of the FMIS system phase II rollout and training in late June 2023, a training plan has been developed for the IT teams of the Ministry of Finance, Public Service Commission (PSC), and Public Service System (PSS), the training plan is linked to the Competency Framework. Additionally, an Internal Audit Charter drafted. Despite these accomplishments, there has been a slow down in project momentum since the project manager left the project in June. Recruitment of other key personnel such as the HRD Specialist, PFM Advisor and Legislative Officer have been delayed. Proactivity in procurement and financial management is needed. Two of three PDO indicators have been achieved, but continuation of capacity building is needed to support sustainability 10/30/2023 Page 1 of 7 The World Bank Implementation Status & Results Report Project to Strengthen budget execution and financial reporting systems (P163131) of the reforms. The delayed rollout of the FMIS resulted in a condensed training period on use of the system. Users require continued training and support and continue to identify customization needs. Further training and support on US GASB is also required due to its complex requirements. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Moderate Low Low Macroeconomic Moderate Moderate Moderate Sector Strategies and Policies Moderate Moderate Moderate Technical Design of Project or Program Moderate Moderate Moderate Institutional Capacity for Implementation and Substantial Substantial Substantial Sustainability Fiduciary Substantial Substantial Substantial Environment and Social Low Low Low Stakeholders Moderate Moderate Low Other -- Low Low Overall Substantial Moderate Moderate Results PDO Indicators by Objectives / Outcomes To improve the completeness, realiability and timeliness of Government’s annual financial statements IN01350370 ►PDO-1: Completeness, quality and timeliness criteria met for Annual Financial Statements by MoF (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Year 4 target delayed, Single audit submission Year 4 target delayed, AFS for FY2022 FY23 will be the first deadline (9 months after FY23 will be the first year submitted for audit by Value year AFS can be year-end) not met AFS can be produced Dec 31, 2022 produced through the through the system. system. Date 29-Jun-2018 04-Apr-2023 20-Oct-2023 30-Jun-2023 IN01350407 ►PDO-3: New FMIS used for preparation of budget and recording of revenue and expenditure transactions (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target 10/30/2023 Page 2 of 7 The World Bank Implementation Status & Results Report Project to Strengthen budget execution and financial reporting systems (P163131) New FMIS used for recording revenue and Accounting software 4- expenditure Value Gov in use but being Achieved Achieved transactions and phased out preparation of budget for FY2024 Date 29-Jun-2018 04-Apr-2023 20-Oct-2023 31-Jul-2023 To improve the availability of reliable socioeconomic statistics IN01350406 ►PDO-2: Production, publication of statistical abstract featuring key findings from the HIES (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Statistical abstract No HIES data available Value Achieved Achieved featuring key findings since 2002 from HIES published Date 29-Jun-2018 04-Apr-2023 20-Oct-2023 31-Mar-2021 Intermediate Results Indicators by Components Strengthening the Public Financial Management Environment IN01350408 ►IR-1: Procedures Manual updated with detailed guidance (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Procedures Manual in Year 2 partially achieved place with detailed Year 3 delayed Year 4 Year 2 achieved Year guidance for budget delayed: Updates to MoF 3 delayed Year 4 formulation, As-is manuals for three Value SOP Manual (2015) delayed: accounting, internal functions available promulgated controls, payroll, fixed assets, cash management and financial reporting Date 29-Jun-2018 04-Apr-2023 20-Oct-2023 31-Mar-2022 IN01350412 ►IR-2: New chart of accounts adopted to facilitate management, financial and statistical reporting (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target “D” score in 2012 PEFA PI-5; economic classification used for New COA meets execution and reporting, Value Achieved Achieved criteria for "A" score for but not for preparation PI-4 and appropriation. No functional or sub- functional classification. Date 29-Jun-2018 04-Apr-2023 20-Oct-2023 30-Dec-2020 IN01350415 10/30/2023 Page 3 of 7 The World Bank Implementation Status & Results Report Project to Strengthen budget execution and financial reporting systems (P163131) ►IR-3: Update to Public Procurement Code and Implementation Guidance issued (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Year 4 delayed: To be Updated Public Code in need of update completed April-May Year 3 and 4 in Procurement Code Value and no implementation since bill has been progress. and IRR in use for guidance available passed. public procurement Date 29-Jun-2018 04-Apr-2023 20-Oct-2023 30-Jun-2023 Financial Management Information System IN01350409 ►IR-4: Financial data integrity achieved to meet “B” score for PI-27 (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Year 1 partially achieved. Year 2 not achieved – Year 1 partially “D” score in 2012 PEFA PEFA assessment achieved. Year 2 not PI-22. Bank account needed. Year 3 yet achieved. Requires reconciliation and Criteria for “B” score Value achieved. Year 4 further capacity clearance of suspense for PI-27 fully met delayed: assessment to building. and advance accounts be completed by PFM . delayed and incomplete Specialist. Date 29-Jun-2018 04-Apr-2023 20-Oct-2023 31-Dec-2022 IN01350413 ►IR-5: In-year budget reports prepared and published by MoF to meet PEFA Framework “B” score of PI-28 (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target MoF Budget Division currently provides two in- year budget reports MoF Budget Division In-year budget reports (Reports 134 & 240) on a currently provides two prepared and cleared quarterly basis but also in-year budget reports for publication on MoF provides these on an ‘on (Reports 134 & 240) In-year budget reports website meeting a request basis. Year 3 on a quarterly basis Value not prepared and not criteria for timing, delayed – assessment to but also provides published accuracy, coverage be completed by PFM these on an ‘on a and comparability to Specialist. Year 4 request basis. Year 3 meet criteria of “B” delayed – assessment to and delayed. score for PI-28 be completed by PFM Specialist. Date 29-Jun-2018 04-Apr-2023 20-Oct-2023 30-Jun-2023 Change Management and Human Resource Development IN01350410 ►IR-6: Competency framework with gender targets adopted for PFM related jobs across govt (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target 10/30/2023 Page 4 of 7 The World Bank Implementation Status & Results Report Project to Strengthen budget execution and financial reporting systems (P163131) Competency framework specifying minimum skillsets required adopted for No competencies for PFM related jobs PFM related roles Value Year 4 in progress Year 4 in progress across government defined. Gender targets and used for not identified. recruitment and training to build gender-balanced workforce Date 29-Jun-2018 04-Apr-2023 20-Oct-2023 30-Jun-2023 IN01350414 ►IR-7: Number of staff completing external training programs in PFM related disciplines (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 62.00 129.00 50.00 Date 29-Jun-2018 04-Apr-2023 20-Oct-2023 30-Sep-2023 IR-7: Achieved Comments: IN01350416 ►IR-8: Gender-sensitive communications conducted for the project for awareness and building ownership (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target MoF website enhanced and Year 1 has not yet No communication Year 1 has not yet regularly updated with started Year 2 partially strategy; regular updates started Year 2 partially information for achieved Year 3 Value and information not achieved Year 3 partially government staff and partially achieved Year released for government achieved Year 4 delayed. citizens with 4 delayed. staff and citizens. functionality developed for capturing and summarizing feedback. Date 29-Jun-2018 04-Apr-2023 20-Oct-2023 30-Jun-2023 IN01350417 ►IR-9: Transparency and citizen engagement in budget preparation and execution (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value MoF website exists but Year 3 partially achieved Year 3 partially MoF website includes does not provide platform Year 4 delayed achieved Year 4 functionality to capture for receiving citizen delayed citizen feedback. feedback. Information on budget preparation stages, final budget and quarterly updates on budget execution posted regularly including: a) Summary presented in a citizen-friendly format understandable by non-technical audience; 10/30/2023 Page 5 of 7 The World Bank Implementation Status & Results Report Project to Strengthen budget execution and financial reporting systems (P163131) b) Summary of citizen feedback received and government response Date 30-Apr-2018 04-Apr-2023 20-Oct-2023 25-Jun-2024 IN01350418 ►IR-10: Training plan developed to meet standards set in competency framework and address skills gaps (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Training plans in place Value No training plans in place Achieved Achieved for MoF staff Date 29-Jun-2018 04-Apr-2023 20-Oct-2023 31-Jan-2022 IN01350419 ►IR-11: Number of external training program partnerships for certification and degree courses in PFM (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Four (4) external training program No external training partnerships for Value program partnerships in Achieved Achieved certification and place degree courses in PFM related disciplines Date 30-Jun-2018 04-Apr-2023 20-Oct-2023 30-Jun-2023 Household Income and Expenditure Survey (HIES) Implementation IN01350411 ►IR-12: Household Income and Expenditure Survey (HIES) fieldwork and data cleaning completed (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target HIES data cleaning HIES not conducted Value Achieved Achieved completed and since 2002 documented Date 30-Jun-2018 04-Apr-2023 20-Oct-2023 31-Dec-2020 Performance-Based Conditions Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P163131 IDA-D3220 Effective USD 9.00 9.00 0.00 5.06 3.32 60% Key Dates (by loan) 10/30/2023 Page 6 of 7 The World Bank Implementation Status & Results Report Project to Strengthen budget execution and financial reporting systems (P163131) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P163131 IDA-D3220 Effective 30-May-2018 18-Jul-2018 01-Oct-2018 25-Sep-2023 25-Jun-2024 Cumulative Disbursements Restructuring History Level 2 Approved on 31-May-2023 Related Project(s) There are no related projects. 10/30/2023 Page 7 of 7