BANGLADESH Strengthening Public Financial Management Program to Enable Service Delivery (P167491, Credit Number: 6368-BD) Virtual Mid-term Review (MTR) Mission January 24-27, 2022 AIDE MEMOIRE Part 1 A. Introduction and acknowledgments 1. A World Bank (WB) team undertook the mid-term review (MTR) mission for the Strengthening Public Financial Management Program to Enable Service Delivery (SPFMS, P167491) during January 24-27, 2022. The main objectives of the mission were to: (i) review the achievement of the Disbursement Linked Results (DLRs); (ii) evaluate overall Program performance compared to the Program Development Outcome (PDO); and (iii) propose any structural changes to the Program design and results framework that may be needed to enhance the achievement of Program outcomes. The mission met with representatives of the Finance Division (FD), Office of Comptroller and Auditor General (OCAG), Controller General of Accounts (CGA), Planning Commission, and the Economic Relations Division (ERD). The mission also held a debriefing meeting with the Development Partners (DPs) funding the Strengthening Public Expenditure Management Program Bank Executed Trust Fund (SPEMP- BETF): the European Union (EU), the Foreign, Commonwealth & Development Office (FCDO), and Global Affairs Canada. 2. The WB team thanks the Government of Bangladesh (GoB) for their support during the mission. In particular, the team would like to thank Mr. Abdur Rouf Talukder, Senior Secretary, FD and Mrs. Nazma Mobarek, Additional Secretary Budget-1, FD and National Program Director (NPD), for their continued leadership and support for the implementation of the Program. The mission team is also grateful to the Program Execution and Coordination Team (PECT), and all the respective Program Implementation Team (PIT) members for their technical inputs and support during the mission. 3. This Aide Memoire records the agreements between the mission team and the GoB, and will be publicly disclosed under WB’s access to information policy. Status of implementation of the Program Action Plan and Legal Covenants are captured in Annex 1; disbursement projections are in Annex 2; list of the meetings and work sessions held during the mission are in Annex 3; and the list of persons met during the mission are in Annex 4. The key findings and agreement in achieving the Disbursement-Linked Results (DLRs) are in Part 2 of a separate document. B. Key Program data Table 1: Program Data Details Current Board Approval March 1, 2019 Signing date June 27, 2019 Effectiveness July 3, 2019 Closing Date June 30, 2024 Loan Amount US$100 million Program Age 5 years % Disbursed 50.9% (including DLI advance of US$20 million) Overall risk rating Moderate Overall performance rating Satisfactory 4. Despite the challenges imposed by the ongoing COVID-19 pandemic with series of lockdowns, the Program is making progress towards achievement of the PDO. Figure 1 shows the overall status of Disbursement Linked Indicator (DLI) achievement. Outputs to achieve results for DLI 2 and 6 are awaiting approval for them to be submitted for independent verification. Scheme for DLI 9 was approved in September 2021 and awareness raising is ongoing for implementation. 1 of 15 Figure 1: Overall Status of DLI achievement C. Key findings and agreements reached 5. As MTR, only 9 out of the 45 DLRs (representing 20 percent) have been fully met, verified, and disbursed – Figure 2. Eight (DLRs (i.e., 18 percent) are partially met; 20 DLRs (i.e., 44 percent are in progress, and eight DLRs (i.e., 18 percent) are off-track (See Table 4). Disbursement against DLRs met is expected to pick-up to 48 percent in June 2022 and increase gradually thereafter as shown in Figure 3 based on the projections in Annex 2. Figure 2: Status of DLR implementation (Number of DLRs, percentage of DLRs) 2 of 15 Figure 3: DLI disbursement projections Table 4: Off-track Disbursement Linked Results (DLR) # Disbursement Linked Results (DLR) SDR US$ Remarks 1 DLR 2.3 The Government's expenditure on Social Sectors 2,150,000 3,000,000 GoB is still budgeting at below 29 has increased to 29 percent of total actual public percent as per social infrastructure expenditure (US$3 million) classification in published budget documents. 2 DLR 2.5 The Government’s expenditure on Social Sectors 1,825,000 2,500,000 Same as above. has increased to 29.25 percent of total actual public expenditure (US$2.5 million) 3 DLR 4.4 The number of new special accounts (outside the 1,450,000 2,000,000 Stock-take exercise not yet Treasury Signle Account/TSA) opened (in the relevant completed. Need to formulate a Fiscal Year in which the DLR is being assessed) has been Cash Management Policy and reduced by 50 percent comprehensive TSA arrangement. 4 DLR 7.5 The ratio of State Owned Enteprise (SOE) 2,150,000 3,000,000 There are indications that to meet transfers to total public spending has been reduced by 15 certain developmental objectives, percent State-owned Enterprises (SOEs) may be needing more transfers. 5 DLR 8.3 Government-wide unaudited annual financial 1,450,000 2,000,000 Format of Finance Account statements including annual financial statements of SAEs consistent with International Public have been submitted to OCAG within six months of the Sector Accounting Standards Fiscal Year-end (US$2 million) (IPSAS) approved in January 2022. CGA yet to clear backlog of 3 years. 6 DLR 9.3 Internal audit reports prepared in accordance with 1,100,000 1,500,000 Late approval of GoB scheme in the Model Internal Audit Charter and the Risk-based September 2021. Sensitization and Internal Audit Manual issued under DLR 9.1 have been awareness raising on importance of issued to the heads of departments and principal IA ongoing. Charter and manuals accounting officers of any two departments in any of the under preparation. Selected MDAs (US$1.5 million) 7 DLR 9.4 The relevant Audit Committees resolve 50 2,500,000 3,500,000 Same as above percent of: (i) audit recommendations for each of the Selected Ministries, Departments and Agencies (MDAs) other than the FD and (ii) audit recommendations and procurement post-reviews in FD based on the stock of total audit recommendations and procurement post-reviews as applicable pending for each of the relevant Selected MDAs and the FD respectively at the beginning of the relevant Fiscal Year in which the DLR is being assessed (US$3.5 million) 3 of 15 8 DLR 10.3 The PFM Learning Hub has produced at least 1,450,000 2,000,000 Initial selected research topis under three research papers on PFM reform lessons and re-consideration. published the said reports through its website (US$2 million) 14,075,000 19,500,000 D. Areas for management attention and action (i) Timeliness of submission of Finance Accounts for audit - there is a backlog of 3 years for submission of Finance Accounts by the Controller General of Accounts (CGA) as Finance Account for FY2017/18 was submitted to Office of Comptroller and Auditor General (OCAG) in November 2021 (i.e., three and a half years after the year-end). Audited Finance Accounts for FY14/15 was submitted to Parliament four years after the year-end in January 2020. This has resulted in a backlog of 6 years for submission of audited Finance Accounts to Parliament. (ii) Budget reliability. Preliminary result from the Public Expenditure and Financial Accountability (PEFA) assessment covering FY18/19 to FY20/21 shows significant variances which indicate that the budget is not fully implemented as originally approved by Parliament. This means that the policy intent of the budget is not implemented as approved by the Parliament. Overly optimistic revenue forecasts can lead to unjustifiably large expenditure allocations that will eventually require either a potentially disruptive in-year reduction in spending or an unplanned increase in borrowing to sustain the spending level. Also, the composition variance points to inaccuracy of forecasts of the revenue structure or the ability of the government to collect the amounts of each category of revenues as intended. (iii) Use of Macro-Fiscal Model (MFMOD) in next medium-term macro framework (MTMF) and budget preparation to improve realism of revenue projections and expenditure allocations. This will contribute to addressing the current low budget out-turns that are adversely affecting the reliability of the budget. (iv) Electronic Funds Transfer (EFT). While pension, officer and staff pay are extensively paid by EFT, there is limited progress for Drawing and Disbursing Officers (DDOs) to submit vendor bills online for payment by EFT (currently less than 1 percent). Digitalization and direct electronic payment to beneficiaries will usher in an era of greater efficiency and transparency with more people pulled into the financial sector. (v) Readiness for International Standards Organization (ISO) 27001:2013 Information Security Management Services (ISMS) Certification . The information security assessment of iBAS++ was completed and technical support provided by PricewaterhouseCoopers (PwC) to secure iBAS++. Seventy information security related documents, which include Guidelines, Procedures, Work instructions and Templates, were delivered to FD. With only 30 percent of required processes and controls implemented, iBAS++ is not yet in a state of readiness to invite an accredited ISO27001 Certifying Authority. E. MTR recommendations (i) Program oversight. There has been only one steering committee meeting since approval of the program. The steering committee is expected to meet at least once every six months. The legal covenant requires an active steering committee responsible for providing policy guidance and strategic oversight to monitor program implementation, serving as the highest-level coordinating entity, and resolving implementation challenges. The PECT and PIT members are also expected to serve for a sustained period to have positive impact in meeting the program results. (ii) Program Expenditure Framework (PEF). Low utilization of Program funds with 12 percent to date lags cumulative WB disbursement and pose risk of refund at Program closure. If such low spending continues, at Program closure date, Government will be required, as per Section 8.06 of the General Conditions for IDA Financing Program-for-Results Financing Dated July 14, 2017 to refund the difference between disbursement and spending against the eligible expenditure program. The Bank team is available to work with the PECT to recalibrate the expenditure framework to ensure adequacy to support the required activities to achieve the results. (iii) Restructuring/reallocation. The mission during the wrap-up meeting with the Sr. Secretary of Ministry of Finance, acknowledged the implementation challenges based on which a 2-year extension was suggested by FD. The Bank recommended a 1-year extension which will effectively provide 3 more years up to June 2025 for implementation of the lagging activities together with the proposed restructuring/reallocation (Table 5). FD during the mission’s wrap-up meeting held on March 7, 2022 with ERD, informed that they will be submitting a request for 2 years extension that will be contained within the existing 8 components supported by the Program 4 of 15 and will not include OCAG. Indicative areas for scale-up using the reallocated amount are: pension and improvement of the security and functionality of the Integrated Budget and Accounting System (iBAS++). Table 5: Proposed Restructure/Reallocation (vi) Evaluation of training activities. Currently evaluation of training is limited to obtaining feedback on the content, arrangement, and delivery by facilitators. Evaluation of the training program can be improved by focusing on measuring four kinds of outcomes that should result from a highly effective training program: (i) Reaction: what participant thinks of training (ii) Learning: improvements to knowledge and capability; (iii) Behavior: improvements to work performance; and (iv) Results: impact on the organization (Donald Kirkpatrick “Evaluating Training Programs� 1994). F. Coordination and implementation arrangements 6. Seven Implementation Support Consultants (ISCs) have been deployed to support specific Program Implementation Teams (PITs) to strengthen internal implementation arrangements. The second PFM Action Plan Stakeholder Retreat, which was planned for first week of February 2022, has been postponed because of the worsening COVID-19 pandemic. Under the prevailing circumstances, the mission advised to conduct the retreat virtually, possibly for a few hours over a period of 2-3 days. G. Independent Verification Agents (IVA) 7. Three IVAs are in place, as follows: Cabinet Division for DLI 2; PwC for DLIs 1, 6, 7, 9, and 10; and OCAG for DLIs 3, 4, 5 and 8. The Financing Agreement requires IVAs to submit to the Association corresponding verification reports in form and substance agreed with the Association and any information and/or documentation reasonably required for verification of the achievement/fulfillment of the DLRs for disbursement. As most of the DLIs to be verified by OCAG are centered around iBAS++, the composition of the OCAG team will benefit from staff who are proficient in the use of computer aided audit techniques and this will improve efficiency and economy (offsite work). The good practice by other Program for Results (PforR) operations was recommended to be followed going forward: (i) a tripartite meeting between World Bank, PECT and IVA to discuss the draft achievement report and agree on the methodology and verification protocols; and (ii) a tripartite meeting between World Bank, PECT and IVA to discuss the draft verification report before finalization so that the form and substance can be agreed by all parties to fulfill disbursement. H. Monitoring and Evaluation (M&E) 8. The Program has established strong results focus, with the DLRs and DLIs being the reference point for all PIT activities. PITs have effectively framed all activities around the DLRs, and continuously assess the actions and steps needed to attain the relevant targets. PITs submit quarterly progress reports to PECT. In addition, the PECT prepares and publish semi-annual progress reports. The annual work plan (AWP) once approved by the PIT head, is 5 of 15 frozen for the six-months of implementation after which a new annual plan is approved on a rolling basis. The AWP template combines both the planning and actual progress which is reported at the sub-activity level. These reports prepared by the PITs are used by the PECT as an input to prepare the semi-annual progress report on the implementation of the PFM action plan and used for discussion in the semi-annual retreats. At mid-term, the results framework could strengthen its line of sight to the impacts and broader PFM reforms targeted by the PFM action plan. 9. The ongoing Public Expenditure and Financial Accountability (PEFA) assessment will serve as a key opportunity to identify how the Program has contributed to improve PFM performance. A drill-down exercise will be undertaken to identify the root causes of good performance which will be used to strengthen weak area or areas lacking progress or reversal in performance. PITs can also improve monitoring conducted under each component by revisiting the DLI technical notes and sharpening indicator specifications together with the PECT and Bank team. In particular, the definition, baseline and targets for social sector spending will be reviewed by using standardized classification (GoB health, education and social safety budget sectors, or classification of functions of government (COFOG)). I. Change management and strategic communication 10. While all Program stakeholders acknowledge the importance of change management, PITs have included relevant activities to varying degrees. Some components explicitly recognize sources of resistance to implementation, though not all PITs have identified or planned the incentives or disincentives to address resistance. Specific performance incentives are foreseen under component 4 (following the peer review of budget management committees) and component 9 (following the independent reviews of SOEs). Otherwise, PITs may benefit from planning their change management activities more systematically and strategically. Stakeholder engagement approaches tend to rely heavily on workshops and information dissemination. Going forward, PITs need to consider more proactive engagement and determine where champions need to be mobilized, particularly to address more challenging issues, inter-agency coordination, and other issues that could catalyze implementation and expedite achievement of results. 11. Citizen engagement, outreach, and communication - the Program is yet to link citizen engagement, outreach, and communication of results achieved under the Program. The link between the M&E framework and the agreed Program results needs to be strengthened. COVID-19 restrictions impeded organization of in-person events that would have included the Program beneficiaries, donors, civil society and non-state actors. Thus, the Program has relied heavily on its website to share information about the Program. Nonetheless, this forum may not necessarily provide sufficient outreach or be geared towards communicating results beyond most internal government stakeholders. The Program could strengthen channels for communicating achievements (DLRs achieved and why it matters) to the “demand side� such as citizens and civil society groups that would articulate demand for PFM reforms, transparency, and be the ultimate beneficiary of greater resources being directed towards service delivery. Component 8 (on pensions) has established a website with good traffic judging by the number visits. This component also foresees a communication strategy, pension satisfaction survey, and other channels for outreach and communicating with beneficiaries. Shifting behavior to achieve the PFM reform objectives requires not only technical actions (e.g. laws, standards, technology, training) but considerations of the political economy dynamics in the policy arena (e.g. incentives, power relationships, interest, influence) which will require appropriate actions (cooperation, commitment, coordination) to provide the enabling environment. Other change management tools include: stakeholder mapping to determine the ‘change readiness’ which in turn will determine the change approach/path. Force-field analysis will also be useful to identify drivers and barriers for each reform element. A clear implementation plan using the responsible, accountable, consult and inform (RACI) model 1 will help to pinpoint accountability for the expected results. J. Fiduciary matters 12. Scheme approval (Table 6). The Program became effective on July 3, 2019. Except for scheme on PFM Reforms Leadership, Coordination and Monitoring that was approved in May 2019; two schemes were approved as 1 The first cohort of Implementation Support Coaches (ISCs) were trained on this tool during their onboarding session. 6 of 15 late as three months after effectiveness, one scheme after four months, one scheme after six months, one scheme after eight months, and internal audit scheme was approved after two years and three months. In some instances, it took three months to release budget after scheme approval. Table 6: Scheme Approval Status and Fund Release Tracker (US$ million) 13. Low utilization of Program funds with 12 percent to date lags cumulative WB disbursement and pose risk of refund at Program closure. Late approval of GoB schemes and release of budget contributed to slow take-off in implementation and spending. Underspending at only 12 percent of total Program budget is typical of country-level poor budget execution rate. Currently there is a shortfall of US$30 million for Program spending to cover cumulative WB disbursement to date and, if this low execution rate continues, GoB will have to refund the disbursed funds at Program closure. The method of preparing Program budget utilization report is being reviewed to ensure consistency with the principles used in preparing the budget for the various responsible wings. The eligible expenditure program will be recalibrated to ensure that the required resources are available to deliver the expected results by striking a balance between normal recurrent costs and salaries of the responsible wings and cost of new reform items. Table 7: Budget utilization by Program components/schemes as of December 31, 2021 7 of 15 Table 8: Budget utilization by nature of expenses as of December 31, 2021 14. External audit. There are no unresolved audit observations. According to the legal covenant, the Program annual external audit for FY2020/21 will be submitted on or before March 31, 2022. 15. Procurement packages. Notice Board of SPMFS website under “Archive� section contains procurement notifications. Annual Procurement Plan (APP) related information are under the "Procurement" section in the SPFMS website. The mission noted that there are laerge number number of procurement packages. FD will need to improve its capacity to be able to execute such a large number of packages. Furthermore, there is a significant number of individual consultants (Table 9) that need to be closely monitored to ensure that they are focused and contributing to the Program results. The mission advised that the number of consultants in the procurement plan should be reconciled with the workforce approved in the General Orders establishing the various schemes. Table 9: Status of individual consultant packages # Name of schemes No. Staffs Vacant In approved recruited positions progress 1 Improvement of Fiscal Forecasting through Development of Macroeconomic Model 13 5 8 6 2 Strengthening the Capacity of Treasury & Debt Management Wing of Finance Division 16 12 4 0 3 Improvement of Public Financial Services Delivery through Implementation of BACS 89 71 18 18 and iBAS++ 4 Scheme on improving Pension Management system and quality and timeliness of 48 24 24 1 Financial Reporting 5 Scheme on strengthening of State-owned Enterprises’ Governance 36 15 21 6 6 Scheme on PFM Reforms Leadership, Coordination and Monitoring 41 27 14 3 7 Scheme on effective planning and budgeting through capacity enhancement 21 11 10 0 8 Scheme on Internal Audit and Audit Follow-up 13 8 5 3 Grand total 277 173 104 37 16. Grievance Redress Mechanism (GRM). The Program website has a ‘procurement tab’ that includes a form for the grievance redress system (GRS2). This is a welcome move to provide a channel for beneficiary/citizen feedback. The mission advised that the GRM form could be made more visible on the webpage for ease of access by stakeholders. A structured mechanism will need to be in place to monitor complaints/feedback and take objective administrative action and redress when necessary. K. Plan for the fifth implementation support mission 17. The next implementation support mission is tentatively scheduled for June 2022. To compensate for the inability of visiting the Program office as was done almost every week in the past, the Task Team will continue to hold monthly check-in meetings with the NPD and the PECT. The check-in meetings will take stock of implementation progress, address any challenges, and assess readiness to implement the proposed additional financing. 2 https://spfms.gov.bd/forms/form/Grievance%20anagement/- - http://www.spfms.gov.bd/forms/form/1/- 8 of 15 Annex 1: Status of implementation of the Program Action Plan (Annex 6 of PAD) and Legal Covenants Action Description Responsibility Recurrent Frequency Due Date Completion Status Measurement (Update as of February 2022) Ensuring establishment Finance Division Yes CONTINUOUS PECT and PITs are Done: of the PECT and PITs in place throughout PECT and PITs are in (within 3 months of the the Program place within three Effective Date) and that implementation months of the these are maintained effectiveness date. The throughout the Program three vacancies in implementation Program Execution and Coordination Team (PECT) to be filled by August 2021. Strengthen IPF as PFM Finance Division Yes CONTINUOUS IPF strengthened Done: Learning Hub by with the addition of Five permanent staff recruiting three five permanent staff were recruited within permanent staff within six months of the six months of the effective date. Effective Date DLI technical notes are Finance Division Yes YEARLY DLI technical notes The notes will be reviewed and amended are periodically updated based on the from time to time in updated, in MTR findings. consultation with the consultation with the Bank Bank team. Arrange DLI Finance Division Yes YEARLY Submission of DLI Done: verification by the verification reports All three Independent OC&AG, the Cabinet acceptable to the Verification Agencies Division and through a Bank. are on board. The three third-party verification agencies are PwC, agent (to be appointed OCAG and CD. no later than 3 months after the Effective Date) Assign separate Finance Division No 30-Jun-2019 The Program budget Done: organizational budget for FY20 be Under code 10901 for codes to the FD wings distributed by FD Secretariat, Finance responsible for Program wings. Division, there is a implementation (macro- specific code [3200002] economic, SOE, Debt, for overall Program Expenditure etc.) to with scheme-wise enhance managerial separate accountability of funds organizational/impleme allocated to deliver on nnation unit budget the specific DLI codes assigned. schemes at the lowest organizational unit Program to use the Finance Division Yes CONTINUOUS eGP used for all Done: separate standard Program All procurement of document for procurements. goods is being procurement of processed through eGP. permitted works through e-GP system, which does not have the provision of rejecting bids based on above/lower than the estimated cost. For each bid/proposal Finance Division Yes CONTINUOUS Evaluation Done. under the Program, form committees are All committees are in Bid/Proposal evaluation established with place. committees consisting suitably qualified/ of members with the experienced appropriate knowledge members and experience of procurement of similar goods/services. 9 of 15 Assign one trained Finance Division Yes CONTINUOUS Trained officer Done: Government official as designated as the The procurement procurement focal point Procurement Focal consultant who was within six months of Point hired from market Effective Date. resigned in December 2020 and replacment with Government official or from the market is ongoing. Advertisement for this vacanct has been published in June 2021 Maintain a publicly Program Yes CONTINUOUS Website with Done: accessible website Execution and disclosable Publicly accessible where all disclosable Coordination procurement data program website procurement data will Team (http://www.spfms.gov. be available and bd/forms/form/1/-) has regularly updated. been launched in January 2021, however disclosable procurement data are not published on this website. However, procurement opportunities and awards are available on the eGP webiste. FD seeks the advice of Finance Division Yes CONTINUOUS Either in-house Environmental and environmental and social capacity built or social expert will update expert(s) for the assistance sought the assessment for the Program, as needed for from IMED proposed addutional Program activities. finanicing. 10 of 15 Annex 2: Disbursement Linked Results Projections 11 of 15 Annex 3: List of the meetings and work sessions held during the mission Date Dhaka / DC Activity Time Monday Dhaka Time Kick-off meeting with National Program Director (NPD) and Program Execution and January 24 10.00 - 11.30am Coordination Team (PECT) - Mission objectives DC Time - Confirmation of meeting schedule 11.00pm – 12.30am (Status Report on each DLR including the Intermediate Results in the Technical Notes, challenges, proposed solutions, and possible areas for additional support to be shared with Bank by Thursday 20th January 2022) Dhaka Time Meeting with PIT- Component 1: Revenue and Expenditure Forecasting 12.00 - 1.30pm - DLI 1: Use of improved fiscal projections for budget-making DC Time 1.00 – 2.30am Dhaka Time Lunch and Prayer Time 1.30 – 2.30pm Dhaka Time Meeting with Planning Commission 2.30 – 3.30pm - Public Investment Management (PIM) DC Time - Infrastructure Governance (InfraGov) 3.30 – 4.30am Dhaka Time Meeting with PIT Component 3: Debt Management 4.00 - 5:00pm - DLR 1.3 An updated medium-term debt strategy (including a Debt Bulletin and DSA) has DC Time been developed 5:00 – 6.00am Tuesday Dhaka Time Meeting with PIT Component 4: Planning and Budget preparation January 25 10.00 - 11.30am - DLI 2: Improved budget alignment with development strategy and gender, social, and climate DC Time considerations through better performance of BMCs 11.00pm – 12.30am - DLI 3: Reduced number of days taken for DDOs to receive budget in selected MDAs Dhaka Time Meeting with PIT Component 7: iBAS++/Budget and Accounting Classification System (BACS) 12.00 - 2.00pm and Financial Reporting - DLI 4: Timely and reliable payments of salaries and vendor invoices with a strengthened TSA DC Time and automated payment system 1.00 – 3.00am - DLI 8: Budget holders in MDAs effectively and transparently use financial information Dhaka Time Lunch and Prayer Time 2.00 – 3.00pm Dhaka Time Meeting with PIT Component 8: Pension management 3.00 - 5:00pm - DLI 5: Improved pension service (disaggregated by gender) through the EFT no later than the DC Time following pension payment cycle after retirement 4.00 – 6.00am Wednesday Dhaka Time Meeting with Office of Comptroller and Auditor General (OCAG) to discuss the design of the January 26 10.00 - 11.30am External Audit Pillar in line with its Strategic Plan and PFM Action Plan 2018-2023. - Scope of OCAG Results Area for the Program and expected outcome DC Time - Tentative DLI(s)/DLRs, 11.00pm – 12.30am - Eligible Expenditure Program (EEP) - Integrated Fiduciary Systems Assessment (IFSA) - Implementation arrangements considering the independence of OCAG. Dhaka Time Meeting with PIT Component- 10: Internal Audit 12.00 - 1.00pm - DLI 9: Action taken on internal and external audit reports in Selected MDAs and post- procurement reviews in the Finance Division DC Time - Establishment of Central Internal Audit Wing (CIAW) in FD and Departmental Internal Audit 1.00 – 2.00am Unit (DIAU) in line departments - Case to MoPA for IA Cadre - Status of hiring reputable international firm for upstream policy work and individual consultants for deployment as TA to line-departments - Sensitization session for PAOs – value of IA, Audit Committee Structure, Reporting Arrangement, budgetary provision for staff and enabling tools 12 of 15 - Reconsideration of timelines to meet DLRs Dhaka Time Lunch and Prayer Time 1.00 – 1.45pm Dhaka Time Meeting with PIT Component 9: SOE Governance 1.45 – 3.00pm - DLI 6: SOE and autonomous bodies’ debt and contingent liabilities statement prepared and submitted to policy makers DC Time - DLI 7: Improved performance of the SOE sector and reduced subsidies as a percentage of 2.45 – 4.00am total public sector spending Dhaka Time Meeting on Component 14: Leadership, Monitoring and Change Management 3.15 – 4:30pm - DLI 10: PFM Action Plan implementation is effectively led through an adequate governance DC Time structure and an effective change management approach 4.15 – 5.30am Dhaka Time Meeting with IPF, CGA and OCAG on piloting the PFM Competency Framework for the Account 4.45 – 5.45pm and/or Audit Cadre. DC Time 5.45 – 6.45am Thursday Dhaka Time Fiduciary Team Meeting with PECT January 27 10.00 – 11.00am - Wing and component-wise budget execution report for various schemes - Status of procurement packages under the various schemes DC Time - Status of fiduciary measures in Program Action Plan (PAP) 11.00pm – 12am Dhaka Time Meeting with NPD and PECT 11.30 – 12.30pm - Compliance with Covenants and Program Action Plan (PAP) - Program Grievance Redress Mechanism (GRM) DC Time - Statistics on interactive website, citizen feedback and follow-up actions 12.30 – 1.30am - Emerging issues from PEFA findings - Agreement on Action Points Dhaka Time Lunch and Prayer Time 12.30 – 1.30pm Dhaka Time Check-out meeting with Country Management Unit (CMU) 1.30 – 2:30pm - Update on progress, challenges, proposed solutions and agreed action points DC Time - Proposed support to OCAG 2.30 – 3.30am Dhaka Time Wrap-up meeting with Sr. Secretary, Finance (Hoon Soh, Practice Manager will attend) 3.00 – 4.00pm - Update on progress, challenges, and proposed solutions DC Time - Key decisions and policy directions 4.00 – 5.00am Dhaka Time Meeting with Economic Relations Division (ERD) 4.30 – 5.00pm - Update on progress, challenges, proposed solutions and agreed action points DC Time 5.30 – 6.00am Sunday Dhaka Time Meeting with Development Partners January 30 5.00 – 6.00pm - Lessons learnt - Implications to deepen support DC Time 6.00 – 7.00am 13 of 15 Annex 4: List of persons met 1. Mr. Abdur Rouf Talukder, Senior Secretary Finance 2. Mrs. Nazma Mobaral, Additional Secretary, Finance Division and National Program Director (NPD), Strengthening Public Financial Management Program to Enable Service Delivery Economic Relations Division 3. Mr. Abdul Baki, Additional Secretary, World Bank Wing 4. Mr. Mr. Md. Hasan Maruf, Deputy Secretary Program Executive and Coordination Team (PECT) 5. Ms. Saima Shahin Sultana, Program Executive and Coordinator, SPFMS Program 6. Ms. Bilquis Jahan Rimi, Program Executive and Coordinator, SPFMS Program 7. Ms. Fatema Begum, Program Executive and Coordinator, SPFMS Program 8. Mr. Md. Helal Uddin, Program Executive and Coordinator, SPFMS Program 9. Mr. Md. Rafiqul Islam, Program Executive and Coordinator, SPFMS Program 10. Mr. Md. Nazrul Islam, Program Executive and Coordinator, SPFMS Program 11. Ms. Tanima Tasmin, Program Executive and Coordinator, SPFMS Program Scheme Name: Improved fiscal forecasting for effective budget-making 12. Dr. Md. Khairuzzaman Mojumder, Additional Secretary, Finance Division 13. Dr. Mohammad Altaf Ul Alam, Joint Secretary, Finance Division 14. Mr. Manwar Hossein Malla, Deputy Secretary, Finance Division 15. Mr. Abu Daiyan Md. Ahsanullah, Deputy Secretary, Finance 16. Dr. Md. Matiur Rahman, Deputy Secretary, Finance Division Scheme Name: Medium Term Debt Strategy 17. Mr. Biswajit Bhattacharya Khokon, ndc, Additional Secretary, Finance Division 18. Mr. Hasan Khaled Foisal, Joint Secretary, Finance Division 19. Mr. Md. Firoz Ahmed, Deputy Secretary, Finance Division 20. Ms. Homayra Begum, Joint Secretary, Finance Division 21. Mr. Md. Ruhul Amin, Deputy Secretary, Finance Division Scheme Name: Improved budget alignment with development strategy and gender, social, and climate considerations through better performance of BMCs 22. Mr. Sirajun Nur Chowdhury, Joint Secretary, Finance Division 23. Dr. Muhammad Yousuf, Deputy Secretary, Finance Division 24. Mr. Muhammad Faruquzzaman, Deputy Secretary, Finance Division 25. Mr. Muhammad Anisuzzaman, Deputy Secretary, Finance Division 26. Begum Liza Khawaja, Sr. Assistant Secretary, Finance Division Scheme Name: Improvement of Public Financial Services Delivery through Implementation of BACS and iBAS++ 27. Mr. Md. Abdur Rahman Khan, Joint Secretary, Finance Division 28. Mr. Mohammad Manzarul Mannan, Joint Secretary, Finance Division 29. Mr. Mohammad Saiful Islam,Joint Secretary, Finance Division 30. Mr. Muhammad Ali Prince, Deputy Secretary, Finance Division 31. Mr. Md. Touhidul Islam, Deputy Secretary, Finance Division Scheme Name: Improving Pension Management system and quality and timeliness of Financial Reporting 32. Mr. Md. Nurul Islam, Controller General of Accounts 33. Mr. Md. Azizul Hoque, Addl. Controller General of Accounts (Admin) 34. Mr. Md. Mamun-Ul-Mannan, Additional Controller General of Accounts (Accounts and Procedure) 35. Mr. Mohammed Kabir Hossain, CPFA, Deputy Controller General of Accounts (Accounts-1) 36. Mr. Kazi Kaium Hossen, Deputy Controller General of Accounts (Accounts-1) 14 of 15 Scheme Name: Strengthening of State-Owned Enterprises’ Governance 37. Ms. Arefin Ara Begum, Director General (Additional Secretary), Monitoring Cell 38. Mr. Md. Saifullah Panna, Joint Secretary, Financial Institution Division 39. Mr. Md. Hakim Uddin, Additional Director General, Monitoring Cell 40. Md. Amirul Islam, Director, Monitoring Cell, Finance Division 41. Syed Khaled Bin Hafiz, Financial Analyst-1, Monitoring Cell, Finance Division Scheme Name: Internal Audit and Audit Follow-up 42. Mr. Kabirul Ezdani Khan, Additional Secretary, Finance Division 43. Begum Sulekha Rani Basu, Joint Secretary, Finance Division 44. Mr. Chowdhury Ashraful Karim, Senior Assistant Secretary (Expenditure Management-5 Section), Finance Division 45. Mr. Mohammad Azad Sallal, Joint Secretary, Finance Division 46. Mr. Mohamed Ismail, Senior Assistant Secretary, Finance Division Institute of Public Finance 47. Ms. Tahmina Begum, Director General IPF 48. Ms Shahana, Director, Deputy Secretary, IPF 49. Ms. Elish Sharmin, Deputy Director, Research, and International Cooperation, IPF 50. Mr. Khurshid Alam, Director, Administration, IPF Planning Commission 51. Mr. Khondker Ahsan Hossain, Chief, Programming Division, Planning Commission 52. Mr. Md. Sayduzzaman, Addl. Chief, Programming Division, Planning Commission 53. Mr. Md. Anwar Uddin, Joint Chief, Programming Division, Planning Commission 54. Dr. Nurun Nahar, Joint Chief, Programming Division, Planning Commission Development Partners 55. Mr. Mohamed Yusuf, Governance Adviser, FCDO 56. Ms. Kishower Amin, Program Manager, EU Delegation 57. Francesco Elicio, Programme Manager – PFM and labor rights 58. Ms. Sylvia Islam, Senior Development Advisor, Global Affairs Canada 59. Mr. Feroz Faruque, Technical Specialist for PFM, Field Support Services Project, Global Affairs Canada 15 of 15