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: SACBD | Responsible Unit: ESAG1 IBRD/IDA | Program-for-Results Financing | FY 2019 | Team Leader(s): Suraiya Zannath, Khuram Farooq, Nazmus Sadat Khan Seq No: 9 | ARCHIVED on 21-Oct-2022 | ISR53431 | Created by: Aleksandar Kocevski on 16-Oct-2022 | Modified by: Aleksandar Kocevski on 20- Oct-2022 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 Despite the challenges imposed by the ongoing COVID-19 pandemic with series of lockdowns, the ongoing Public Financial Management (PFM) Program for Results (PforR) is making progress. Key progress to date with 51 percent disbursement ratio includes: (i) the macro- forecasting model which will improve the realism of the budget with more attainable revenue projections and spending estimates; (ii) Debt Bulletin is now periodically published to improve debt transparency; (iii) publication of budget execution reports; (iv) the reduction of three to one month for release of budget from departments to frontline service delivery units will improve budget execution for critical services to the citizenry; (v) 100 percent electronic funds transfer (EFT) to pensioners; (vi) approval of State-owned Enterprises (SOE) Independent Performance Evaluation Guideline that will be used to develop turnaround strategies; (vii) policy and procedures to monitor SOEs’ debt and contingent liabilities (DCL) will provide fiscal space for strategic budget allocation to critical infrastructure and social services; and (viii) comprehensive database of financial and non-financial data to monitor SOEs including publication of audited financial statement. At the Program implementation midpoint, 22 percent or ten out of the forty-five Disbursement Linked Results (DLRs) have been verified as fully achieved. Ten DLRs (i.e., 22 percent) have been partially achieved; twenty DLRs (i.e., 44 percent) are in progress, and five DLRs (i.e., 11 percent) are off-track. - The Institute of Public Finance (IPF) needs to make and sustain progress towards becoming a knowledge hub for PFM reforms. The World Bank advised IPF to finalize and implement the high-level draft roadmap developed at the workshop on “driving the knowledge agenda through an IPF roadmap, knowledge exchanges and PFM research” held at Cox’s Bazaar (February 8-9, 2019). - 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. Change management, citizen engagement and strategic communication. While all Program stakeholders acknowledge the importance of change management, PITs have included relevant activities to varying degrees. PITs will benefit from planning their change management activities more systematically and strategically. Stakeholder engagement approaches tend to rely heavily on workshops and information dissemination. The Program is yet to link citizen engagement, outreach and communication of results achieved under the Program. 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. Going forward, PITs will 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. Furthermore, the Program could strengthen channels for communicating achievements (Disbursement Linked Results 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. 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. A clear implementation plan using the responsible, accountable, consult and inform (RACI) model will help to pinpoint accountability for the expected results. 10/21/2022 Page 1 of 23 The World Bank Implementation Status & Results Report Bangladesh Strengthening PFM Program to Enable Service Delivery (P167491) 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 51.51 49.71 51% 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 30-Jun-2024 DLI Disbursement Achievement Disbursed amount in Disbursement % for DLI ID DLI Type Description Coc DLI Amount Status Coc DLI Loan: IDA63680-001 DLI1 Use of Imp Fis Proj Partially 1 Regular XDR 7,250,000.00 1,812,500.00 25 % Bud Making Achieved DLI2 Imp Bud Align, Bttr 2 Regular XDR 10,100,000.00 Not Achieved 0.00 Perf of BMCs DLI3 Red No of days DDO Partially 3 Regular XDR 4,350,000.00 3,640,950.00 84 % to rc budg inMDA Achieved DLI4 Rel Pymt of Sal, TSA Partially 4 Regular XDR 6,500,000.00 1,511,665.00 23 % Auto Pymnts Achieved DLI5 Impr Pen Ser Facili of Partially 5 Regular XDR 7,250,000.00 6,500,000.00 90 % Pymnts EFT Achieved DLI6 SOE Auto Bod Debt Partially 6 Regular XDR 5,050,000.00 1,450,000.00 29 % Cont Liab Pol Mak Achieved DLI7 Impr Perf SOE Sec Partially 7 Regular XDR 7,950,000.00 1,450,000.00 18 % Red Subs Pc Total Achieved DLI8 Bud Hold MDA eff n Partially 8 Regular XDR 8,700,000.00 4,944,500.00 57 % trans use FI Achieved DLI9 Act tak Int Ext Audit 9 Regular XDR 5,050,000.00 Not Achieved 0.00 in MMDAs, PP DLI10 PFM Action Plan Partially 10 Regular XDR 10,100,000.00 2,416,666.67 24 % 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 10/21/2022 Page 2 of 23 The World Bank Implementation Status & Results Report Bangladesh Strengthening PFM Program to Enable Service Delivery (P167491) Technical Finance Division Recurrent Continuous Completed Completion Measurement PECT and PITs are in place throughout the Program implementation Seven Program Executive and Coordinators (PECs) are in place as of February 2022. State Owned Enterprises’ Comments Governance (component 9) and PFM Reforms Leadership, Coordination, and Monitoring (component 14) are jointly managed by one PEC. 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 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 so far submitted two verification reports each to Office of Comptroller and Auditor Comments General (OCAG) and PricewaterhouseCoopers (PwC). 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 10/21/2022 Page 3 of 23 The World Bank Implementation Status & Results Report Bangladesh Strengthening PFM Program to Enable Service Delivery (P167491) 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 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 but recruitment of a procurement specialist is pending. 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 10/21/2022 Page 4 of 23 The World Bank Implementation Status & Results Report Bangladesh Strengthening PFM Program to Enable Service Delivery (P167491) 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 Macroeconomic Moderate -- Moderate Sector Strategies and Policies Moderate -- Moderate Technical Design of Project or Program Moderate -- Moderate Institutional Capacity for Implementation and Moderate -- Moderate Sustainability Fiduciary Substantial -- Substantial Environment and Social Low -- Low Stakeholders Moderate -- Moderate Other -- -- -- Overall Moderate -- Substantial RiskComments Comments This is an interim ISR in which all Program risk ratings are maintained as per the previous (April 2022) ISR. The task team will file a full-fledged ISR by end November, upon fielding an implementation support mission for the Program, and update the risk ratings as necessary. Results PDO Indicators by Objectives / Outcomes Improve fiscal forecasting and resource allocation consistent with Government priorities IN01202545 ►Use of improved fiscal projections for budget-making (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target 10/21/2022 Page 5 of 23 The World Bank Implementation Status & Results Report Bangladesh Strengthening PFM Program to Enable Service Delivery (P167491) Value No No No Yes Date 31-Oct-2018 14-Mar-2022 16-Oct-2022 30-Jun-2024 The requirements for the Macroeconomic model have been finalized and approved by the Finance Division in June 2021. The full dataset of macroeconomic variables for the real, monetary, external and fiscal sectors has been completed. Training program is ongoing on the macroeconomic model for improved projections. It is expected that model will be used for FY2022-23 budget preparation. Comments The Debt Bulletin has been published - https://mof.gov.bd/site/page/9466b739-2f5c-4914-ba82- b204af6a594e/Debt-Bulletin. The Medium Term Debt Strategy (MTDS) will be published soon. IN01202561 ►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 20.00 Date 01-Oct-2018 14-Mar-2022 16-Oct-2022 30-Jun-2024 Consultative workshop to finalize the Peer Review Guideline for the Budget Management Committee (BMC) Scorecard was held on December 2, 2021.The Peer Review Guideline sets the principles to assess performance of BMCs of ministries/divisions/other institutions. Objectives of peer review are as follows:  Measure performance of BMCs of ministries/divisions using a scorecard;  Share the best practices among the ministries/divisions/other institutions;  Improve the functioning of the BMCs in the areas such as, budget preparation, execution and Comments monitoring, disposal of audit objections and capacity development. The scorecard is designed on the assumption of linking policy, planning and budgeting under medium-term budget framework (MTBF). For this reason, the functions of BMCs are divided in four areas: (a) Alignment of MTBF with policies and strategies, (b) Budget Review & Approval (c) Monitoring, Evaluation & Audit Disposal; and (d) Capacity Development of BMCs and Miscellaneous. IN01202562 ►Reduced number of days for DDOs to receive budget in selected MDAs (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 56.97 56.97 60.00 Date 01-Oct-2018 14-Mar-2022 16-Oct-2022 30-Jun-2024 56.97 percent of Drawing and Disbursing Officers' (DDOs) FY2021-22 budget was released by July 31, 2021. 59.99 percent and 67.99 percent were released up to September and December 2021 respectively. Comments Improve budget execution in service delivery MDAs IN01202543 ►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 10/21/2022 Page 6 of 23 The World Bank Implementation Status & Results Report Bangladesh Strengthening PFM Program to Enable Service Delivery (P167491) - 85% (1.3 million) - 85% (1.3 million) transactions are done transactions are done through EFT. EFT is through EFT. EFT is used mainly for pay bill used mainly for pay bill and pension purposes. and pension purposes. During the mission the During the mission the team reiterated that team reiterated that DDO DDO online bill - 40% EFT online bill submission EFT used for officers’ submission includes - 30% DDOs includes vendor invoices salaries only. No online vendor invoices on submitting online bills on which there has been bills submission. Stock which there has been - Number of new Value limited progress so far. take of special accounts & limited progress so far. (outside TSA) special EBFs will be done. accounts opened - 21,000 of the 36,000 - 21,000 of the 36,000 annually reduced by DDOs are submitting DDOs are submitting 40% staff pay bill online. The staff pay bill online. The task for developing a full- task for developing a fledged DDO with full-fledged DDO with provision for submitting provision for submitting all types of bills online is all types of bills online is on-going. on-going. Date 01-Oct-2018 14-Mar-2022 16-Oct-2022 30-Jun-2024 One of the benefits of improving cash management through the Treasury Single Account (TSA) is that the impact on the determination of borrowing requirements will be improved by consolidating cash balances. Reduction in costs of borrowing to the government will increase fiscal space for allocation to service delivery Comments and prompt settlement of government obligations will increase confidence in the payment system. DLI 4 will enable the reduction of cash held outside of the TSA and modernize payment processes. Promote enhanced transparency of the budget execution and enable timely accountability IN01202544 ►Budget holders in selected MDAs effectively and transparently use financial information (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 70.00 70.00 50.00 Date 01-Oct-2018 14-Mar-2022 16-Oct-2022 30-Jun-2024 Budget execution reports are available for 70 percent DDOs. Need to assess the ease of generation and Comments use of budget execution reports (BERs) by a sample group of users from "selected MDAs. Intermediate Results Indicators by Results Areas Improve budget execution in service delivery MDAs IN01202563 ►SOE and autonomous bodies' debt and contingent liabilities statement prepared and submitted to the policy makers (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target - SOE debt and contingent - Virtual stakeholder - Virtual stakeholder - Policy and liabilities are not workshop held on June workshop held on June procedures to regulate effectively controlled 28, 2021 and November 28, 2021 and November SOEs’ debt and Value - Partial data of SOEs 28,2021 in presence of 28,2021 in presence of contingent liabilities profitability published in the Senior Secretary of the Senior Secretary of (including an upgraded the annual Economic FD to finalize the FD to finalize the framework for Survey of Bangladesh Procedure to Regulate Procedure to Regulate reporting by SOEs to 10/21/2022 Page 7 of 23 The World Bank Implementation Status & Results Report Bangladesh Strengthening PFM Program to Enable Service Delivery (P167491) - Fiscal risks assessments the Debt and Contingent the Debt and the Finance Division) have not been conducted Liabilities of State-Owned Contingent Liabilities ofhave been drafted and Enterprises State-Owned issued by MoF. (SOEs)/Autonomous Enterprises - 100 SOEs and Bodies (ABs). Finally, the (SOEs)/Autonomous autonomous bodies procedure was approved Bodies (ABs). Finally, have published their by the Senior Secretary the procedure was audited financial of FD on 28 December approved by the Senior statements (covering 2021 and official Secretary of FD on 28 the relevant Fiscal Government Order (GO) December 2021 and Year for which the issued on December 30, official Government DLR is being 2021. Order (GO) issued on assessed). December 30, 2021. - SOE debt and - As of November 2021, contingent liabilities SOE-MC provided a list - As of November 2021, statement (covering of 84 SOEs for which SOE-MC provided a list the relevant Fiscal validation is ongoing to of 84 SOEs for which Year for which the ascertain publication of validation is ongoing to DLR is being their financial statements ascertain publication of assessed) has been on individual websites. their financial prepared by MoF for statements on individual all SOEs and websites. submitted to policy makers. Date 01-Oct-2018 14-Mar-2022 16-Oct-2022 30-Jun-2024 Currently, financial information on a few number of SOEs is published in the annual Economic Survey of Comments Bangladesh, SOE fiscal risks are not assessed and debt and contingent liabilities are not effectively controlled. This indicator seeks to improve the monitoring and reporting of SOEs. IN01202566 ►Improved performance of the SOE sector and reduced subsidies as a percentage of total public sector spending (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value SOEs are not classified as - Independent - Independent - SOE performance commercial and non- Performance Evaluation Performance Evaluation evaluation guidelines commercial. Guideline (IPEG) that will Guideline (IPEG) that have been developed There is some cover 166 SOEs/ABs has will cover 166 by the Finance performance monitoring of been approved and SOEs/ABs has been Division, with clear SOEs, but not systematic Government Order was approved and scoring criteria. and independent. issued in March 2021. Government Order was - A policy and Grants to SOEs are not issued in March 2021. procedures manual divided into different - Membership of the that enables an categories. Independent - Membership of the effective review of Partial data of SOEs Performance Evaluation Independent grants to SOEs has profitability published in Committee (IPEC) for Performance Evaluation been drafted and the annual Economic conducting the Committee (IPEC) for issued by the Finance Survey of Bangladesh. independent conducting the Division. performance evaluation independent - At least 10 SOEs was officially approved performance evaluation have undergone an on November 14, 2021 was officially approved independent and evaluation is on November 14, 2021 performance expected to start on the and evaluation is evaluation, in first set of 10 SOEs/ABs. expected to start on the accordance with the first set of 10 SOE performance - The following 10 SOEs SOEs/ABs. evaluation guidelines have been selected to developed. undergo an independent - The following 10 SOEs - Turnaround performance evaluation have been selected to strategies have been in accordance with the undergo an developed for at least approved SOE independent 10 non-performing independent performance evaluation SOEs. in accordance with the 10/21/2022 Page 8 of 23 The World Bank Implementation Status & Results Report Bangladesh Strengthening PFM Program to Enable Service Delivery (P167491) performance evaluation approved SOE - The ratio of SOE guidelines (IPEG). independent transfers to total public 1. Chittagong Port performance evaluation spending (in the Authority (CPA) guidelines (IPEG). relevant Fiscal Year in 2. Bangladesh Bridge 1. Chittagong Port which the DLR is being Authority (BBA) Authority (CPA) assessed) has been 3. Bangladesh Overseas 2. Bangladesh Bridge reduced by 15%. Employment and Service Authority (BBA) Limited (BOESL) 3. Bangladesh 4. Khulna Development Overseas Employment Authority (KDA) and Service Limited 5. Bangladesh Inland (BOESL) Water Transport 4. Khulna Development Authority (BIWTA) Authority (KDA) 6. Bangladesh Small and 5. Bangladesh Inland Cottage Industries Water Transport Corporation (BSCIC) Authority (BIWTA) 7. Bangladesh Power 6. Bangladesh Small Development Board and Cottage Industries (BPDB) Corporation (BSCIC) 8. Bangladesh Petrolium 7. Bangladesh Power Corporation (BPC) Development Board 9.Bangladesh Shipping (BPDB) Corporation (BSC) 8. Bangladesh 10. Bangladesh Forest Petrolium Corporation Industries Development (BPC) Corporation (BFIDC) 9.Bangladesh Shipping Corporation (BSC) 10. Bangladesh Forest Industries Development Corporation (BFIDC) Date 01-Oct-2018 14-Mar-2022 16-Oct-2022 30-Jun-2024 While there is some performance monitoring of SOEs there is no systematic and independent monitoring. Comments DLI7 seeks to improve the monitoring and evaluation of SOEs through the completion of independent performance evaluation. Promote enhanced transparency of the budget execution and enable timely accountability IN01202564 ►Improved pension service (disaggregated by gender) through the EFT no later than the following pension payment cycle after retirement (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target - The Pension Service - The Pension Service - The GP Fund Module and GPF Module of and GPF Module of and the Pension - Long process often iBAS++ have been iBAS++ have been Service Module of results in a significant implemented and is implemented and is iBAS++ have been delay after retirement to operational. operational. implemented and are prepare a Pension Disbursement for partial Disbursement for partial operational. Value Payment Order achievement has been achievement has been - A centralized pension - All pension and GP fund made. Verification for the made. Verification for roll with EFT payment records are manual and next disbursement is in the next disbursement capability has been prone to human errors process. is in process. established and is operational. - Disbursement has been - Disbursement has - A government-wide made on the been made on the annual GPF and 10/21/2022 Page 9 of 23 The World Bank Implementation Status & Results Report Bangladesh Strengthening PFM Program to Enable Service Delivery (P167491) achievement of all the achievement of all the Pension Service report DLRs’ except DLR 5.3. DLRs’ except DLR 5.3. has been produced. The CAO Pension & The CAO Pension & - The number of cases Fund Management team Fund Management of delayed pension has been generating team has been payments is reduced GPF and Pension reports generating GPF and by 50%. which will be submitted to Pension reports which - 90% of new OCAG for verification will be submitted to pensioners are paid soon. OCAG for verification through EFT no later soon. than the pension - All the new pensioners payment cycle have been linked to the - All the new pensioners following their employee/payroll have been linked to the retirement. database and their employee/payroll monthly pension and database and their allowances are paid monthly pension and through EFT from the allowances are paid first month of retirement. through EFT from the first month of - Using NID, electronic retirement. Pension Payment Order (ePPO) has been made - Using NID, electronic fully operational. Pension Payment Order (ePPO) has been made - Deduction of GPF fully operational. Subscription and Loan Repayment are linked - Deduction of GPF with Budget Execution Subscription and Loan Module. Repayment are linked with Budget Execution - Pension backlog has Module. been reduced and at present the of cases are - Pension backlog has less than 200. been reduced and at present the of cases are less than 200. Date 01-Nov-2018 14-Mar-2022 16-Oct-2022 30-Jun-2024 This indicator measures the timely processing of pension cases and expedient and convenient payment through EFT. Pension processing is cumbersome for both the Government of Bangladesh (GoB) and the pensioners, there is an urgent need to modernize the system through (i) establishment of a dedicated pension office (ii) the use of EFT and (iii) strengthened accounting and monitoring systems by linking with Comments (iBAS++), this IR seeks to streamline pension processing and payment system by undertaking immediate priority and interdependent actions which are necessary for improved service delivery concerning civil servant pension. IN01202567 ►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 Value Internal audit units are not - It was agreed that - It was agreed that - The Model Internal effective. internal audit units will be internal audit units will Audit Charter and the Internal audit activities established at be established at Risk-based Internal consist primarily of ex-post departmental-level departmental-level Audit Manual have reviews focused on starting with high-risk and starting with high-risk been issued by the financial compliance. high-spending and high-spending Finance Division. departments. MOF held a departments. MOF held - A system for annual virtual sensitization a virtual sensitization procurement planning meeting followed by a meeting followed by a and post-review has 10/21/2022 Page 10 of 23 The World Bank Implementation Status & Results Report Bangladesh Strengthening PFM Program to Enable Service Delivery (P167491) face to face workshop to face to face workshop been established by discuss the objective of to discuss the objective the Finance Division the intervention and to of the intervention and and training on the understand the current IA to understand the system has been practices in the pilot current IA practices in conducted. departments and their the pilot departments - Internal audit reports, challenges. Recruitment and their challenges. prepared in process of consultants is Recruitment process of accordance with the on to provide strategic consultants is on to Model Internal Audit guidance to the provide strategic Charter and the Risk- departments and to guidance to the based Internal Audit prepare Audit Charter departments and to Manual issued, have and Risk based Audit prepare Audit Charter been issued to the Manual. The and Risk based Audit heads of departments departmental internal Manual. The and principal audit units will report departmental internal accounting officers of functionally to the audit units will report any two departments Principal Accounting functionally to the in any of the Selected Officer (PAO), who Principal Accounting MDAs. according to section Officer (PAO), who - The relevant Audit 19(a) of the 2009 Public according to section Committees resolve Moneys and Budget 19(a) of the 2009 Public 50% of: (i) audit Management Act Moneys and Budget recommendations for (PMBMA) is responsible Management Act each of the Selected “to ensure efficient and (PMBMA) is responsible MDAs, other than the transparent financial “to ensure efficient and Finance Division and management and internal transparent financial (ii) audit control processes at the management and recommendations and relevant Ministry or internal control procurement post- Division or Other processes at the reviews in Finance Institution”. relevant Ministry or Division, based on the Division or Other stock of total audit - The internal audit Institution”. recommendations and ‘structure’ established at procurement post- Finance Division, will be - The internal audit reviews, as applicable, responsible for the ‘structure’ established at pending for each of the development of a model Finance Division, will be relevant Selected internal audit charter, responsible for the MDAs and the Finance guidelines, risk-based development of a model Division respectively, audit manual, quality internal audit charter, at the beginning of the assurance and guidelines, risk-based relevant Fiscal Year in continuous training. A audit manual, quality which the DLR is being consulting firm will be assurance and assessed. hired to provide technical continuous training. A assistance including consulting firm will be conduct of post- hired to provide procurement reviews. technical assistance including conduct of - It was agreed that post- post-procurement review of procurement reviews. will be conducted at the procurement cell, - It was agreed that established in the post-review of program office under procurement will be SPFMS program and conducted at the entrusted for entire procurement cell, procurement of the established in the program. program office under SPFMS program and entrusted for entire procurement of the program. 10/21/2022 Page 11 of 23 The World Bank Implementation Status & Results Report Bangladesh Strengthening PFM Program to Enable Service Delivery (P167491) Date 01-Oct-2018 14-Mar-2022 16-Oct-2022 30-Jun-2024 Internal audit (IA) is ad hoc and unstructured with isolated single audits and the applied standards are not based on International Standards for the Professional Practice in Internal Audit issued by The Institute of Internal Auditors (IIA ). Focus is more on pre-audit of documents and transactions for accuracy and compliance; outputs are dependent upon the skills of specific individuals holding the position as part of the Comments larger organizational unit with no specific professional practices and capabilities established; funding is approved by management as needed; enabling infrastructure is absent with no or minimal use of information technology. DLI 9 seeks to establish a modern internal audit function in selected large spending and high-risk departments as part of the suite of internal controls using risk-based audit methods concentrating on systemic issues and providing independent and objective advice to management. Establish an enabling environment for improved PFM outcomes IN01202565 ►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 - Three PFM Action Plan - Three PFM Action - Two PFM Action Semi-annual progress Plan Semi-annual Plan progress reports report has been progress report has (prepared on a semi- approved by the SC. been approved by the annual basis in a SC. Fiscal Year) have been - All three Independent submitted by the PECT Verification Agencies are - All three Independent to the Steering on board. Verification Agencies Committee. are on board. - Two PFM Action - IPF has finalized 5 Plan stakeholder research topics. REoI - IPF has finalized 5 retreats conducted to was published in research topics. REoI review the respective September 2021, EoI was published in semi-annual PFM received for three September 2021, EoI Action Plan progress research papers and received for three reports prepared under technical sub-committee research papers and DLR 10.1 in a Fiscal of 3 members headed by technical sub-committee Year. Dr. Md. Tarique, Director, of 3 members headed - The PFM Learning PFM reform Bangladesh Institute by Dr. Md. Tarique, Hub has produced at implementation, Governance & Director, Bangladesh least 3 research monitoring, and course- Management (BIGM) is Institute Governance & papers on PFM reform correction are not ongoing. Management (BIGM) is lessons and published Value adequately coordinated, ongoing. the said reports and a comprehensive - A consortium led by the through its website. change management CIPFA engaged to - A consortium led by - 6 field inspections to approach needs to be support the IPF has the CIPFA engaged to government service implemented delivered: (i) the support the IPF has delivery centers to development of a PFM delivered: (i) the identify PFM-related Competency Framework; development of a PFM issues have been (ii) a training needs Competency carried out. assessment (TNA) and; Framework; (ii) a - The PECT has (iii) a Code of Conduct training needs prepared a report for PFM professionals. assessment (TNA) and; evaluating the (iii) a Code of Conduct performance of - Field inspection - How for PFM professionals. coaches, facilitators to Note has been and/or implementation approved and circulated. - Field inspection - How support consultants to Note has been engaged to support the - Five field inspections to approved and implementation of the Natore, Kishorgonj, circulated. PFM Action Plan. Khulna, and Bagerhat - 100 civil servants have been conducted. - Five field inspections (with data to Natore, Kishorgonj, disaggregated by - Nine ISCs have been Khulna, and Bagerhat gender) have assigned with the have been conducted. completed specialized 10/21/2022 Page 12 of 23 The World Bank Implementation Status & Results Report Bangladesh Strengthening PFM Program to Enable Service Delivery (P167491) responsibilities of 14 PFM-related components of PFM - Nine ISCs have been courses/certifications. Action Plan. assigned with the responsibilities of 14 - 19 officials have components of PFM enrolled for master’s Action Plan. degree in different universities. - 19 officials have enrolled for master’s degree in different universities. Date 01-Oct-2018 14-Mar-2022 16-Oct-2022 30-Jun-2024 DLI 10 supports a series of change management activities that are carefully articulated to analyze and learn from both successes and failures during the program implementation and improve approach to tackle the PFM problems. These change management activities include the key elements of program’s governance, implementation, and M&E systems, such as enabling progress reports to the Steering Committee and that these are reviewed in a broad-based program retreat encouraging results monitoring and mutual Comments accountability. DLI10 also seeks to establish a sustainable PFM learning environment with strengthened capacity of the Institute of Public Finance as a learning hub and institutionalizing the PFM research, field inspections, and problem-solving facilitation/ coaching. Annual performance reviews and DLI verification will enable a qualitative analysis of the enabling environment for PFM reforms so evolved and recommend improvements, as appropriate. Disbursement Linked Indicators DLI_IND_TABLE ►DLI 1 Use of improved fiscal projections for budget-making (Outcome, 10,000,000.00, 0%) Baseline Actual (Previous) Actual (Current) FY2022 - The macroeconomic - The macroeconomic model requirements have model requirements have been finalized (DLR 1.1) been finalized (DLR 1.1) and approved by the and approved by the Finance Division in June Finance Division in June 2021. 2021. - The full dataset of - The full dataset of macroeconomic variables macroeconomic variables for the real, monetary, for the real, monetary, external, and fiscal sectors external, and fiscal has been completed. A sectors has been DLR 1.5 Projections training has been Static revenue and completed. A training has from the upgraded conducted on the use of expenditure estimates been conducted on the Macro-Economic Value World Bank’s Macro- restrict effective policy use of World Bank’s Model have been Fiscal Model (MFMOD). making. Macro-Fiscal Model used for MTMF and The procurement of the (MFMOD). The budget preparation. software is ongoing. procurement of the software is ongoing. - The Debt Bulletin has been published - - The Debt Bulletin has https://mof.gov.bd/site/pag been published - e/9466b739-2f5c-4914- https://mof.gov.bd/site/pa ba82-b204af6a594e/Debt- ge/9466b739-2f5c-4914- Bulletin. The Medium ba82- Term Debt Strategy b204af6a594e/Debt- (MTDS) will be published Bulletin. The Medium soon. Term Debt Strategy 10/21/2022 Page 13 of 23 The World Bank Implementation Status & Results Report Bangladesh Strengthening PFM Program to Enable Service Delivery (P167491) (MTDS) will be published - Stakeholder consultation soon. on the draft Medium Term Debt Strategy was held on - Stakeholder January 12, 2022. A consultation on the draft second workshop on the Medium Term Debt final draft was help on Strategy was held on February 17,2022. The January 12, 2022. A MTDS will be finalized second workshop on the within next two months. final draft was help on February 17,2022. The MTDS will be finalized within next two months. Date -- 14-Mar-2022 16-Oct-2022 -- A training has been conducted on the World Bank’s Macro-Fiscal Model (MFMod). An initial model has been prepared in this regard using the current macro data. Second round of the training is planned for June 2022. Comments After the model will be completed and adopted. ►DLI 2 Improved budget alignment with development strategy and gender, social, and climate considerations through better performance of BMCs (Outcome, 14,000,000.00, 0%) Baseline Actual (Previous) Actual (Current) FY2022 - ToRs of BMCs and - ToRs of BMCs and BWGs approved and BWGs approved and Government Order Government Order issued issued in June 2021. in June 2021. - Consultative workshop - Consultative workshop DLR 2.4 The to finalize the Peer to finalize the Peer Review average Review Guideline for the Guideline for the Budget performance score BMCs are not fully Budget Management Management Committee of BMCs evaluated functional and require Committee (BMC) (BMC) Scorecard was through inter- additional capacity and Scorecard was held on held on December 2, ministerial peer- empowerment. Gender December 2, 2021. 2021. reviews has disaggregated budget improved by at least Value summary is produced. - Most recent available - Most recent available 25% ($2.5m) DLR Average spending on the public data for FY2019- public data for FY2019-20 2.5 The Social Infrastructure for last 20 show 24.32 percent show 24.32 percent Government’s two years is 28.87%. spending on social spending on social expenditure on infrastructure that is infrastructure that is within Social Sectors has within the boundary of the boundary of the increased to 29.25% the Financing Agreement Financing Agreement of total actual public definition of social sector. definition of social sector. expenditure ($2.5m) Data on actual spending Data on actual spending for FY2019-20 is 24.3 for FY2019-20 is 24.3 percent. percent. Date -- 14-Mar-2022 16-Oct-2022 -- Comments The peer review guideline should be approved by March 2022. So, by June 2022, it is possible to have 15 percent of BMC that have undertaken inter-ministerial peer-reviews for DLR 2.2. to be achieved by September 30, 2022. Allocation for the medium-term will need to be increased to achieve the target of 29 percent actual spending on Social Sectors compared to total actual public expenditure. Since different MDAs contribute to social sector, the Budget Speech needs to incorporate the comprehensive list from a functional perspective so that 10/21/2022 Page 14 of 23 The World Bank Implementation Status & Results Report Bangladesh Strengthening PFM Program to Enable Service Delivery (P167491) execution reports can be consistent with the Budget Speech. As part of the proposed restructuring, the definition, baseline, and targets for social sector spending will need to be reviewed and more precisely defined based on standardized government classifications. ►DLI 3 Reduced number of days for DDOs to receive budget in selected MDAs (Outcome, 6,000,000.00, 0%) Baseline Actual (Previous) Actual (Current) FY2022 - A circular was issued - A circular was issued on on 12 April, 2020 to ease 12 April, 2020 to ease the the fund release process fund release process for for 4th tranche of the 4th tranche of the ‘grant in ‘grant in aid’ given to aid’ given to autonomous autonomous bodies and bodies and private Currently the budget private institutions under institutions under release and distribution to Operating Budget. Operating Budget. DDOs takes around 2 months for the first quarter. - 56.97 percent of DDOs - 56.97 percent of DDOs Budget release from the FY2021-22 budget was FY2021-22 budget was MoF to line ministry is no released by 31 July Value released by 31 July 2021. -- longer required from this 2021. 59.99 percent and 59.99 percent and 67.99 year. Average budget 67.99 percent were percent were released up release delay for quarter 3 released up to to September and and 4 is 2.3 months for September and December 2021 health sector December 2021 respectively. respectively. Date -- 14-Mar-2022 16-Oct-2022 -- Design the iBAS++ monitoring report on budget release status by sector and disaggregated line- directors/DDOs. Conduct awareness and hands-on training for the line-directorates on budget Comments distribution/release reiterate that budget utilization report is not a mandatory requirement for budget release. ►DLI 4 Timely and reliable payments of salaries and vendor invoices with a strengthened TSA and automated payment system (Outcome, 9,000,000.00, 0%) Baseline Actual (Previous) Actual (Current) FY2022 Value EFT used for officers’ - DLR 4.2 (At least 50% - DLR 4.2 (At least 50% DLR 4.4 The salaries only government payment government payment number of new No online bills submission transactions are made transactions are made special accounts through EFT) has been through EFT) has been (outside the TSA) partially achieved. EFT is partially achieved. EFT is opened (in the used mainly for pay bill used mainly for pay bill relevant Fiscal Year and pension purposes. and pension purposes. in which the DLR is DDO online bill DDO online bill being assessed) has submission includes submission includes been reduced by vendor invoices on which vendor invoices on which 50% there has been limited there has been limited progress so far. progress so far. - Initial data on bank - Initial data on bank deposits of government deposits of government 10/21/2022 Page 15 of 23 The World Bank Implementation Status & Results Report Bangladesh Strengthening PFM Program to Enable Service Delivery (P167491) sector collected revealed sector collected revealed 454,823 bank accounts. 454,823 bank accounts. - 21,000 of the 36,000 - 21,000 of the 36,000 DDOs are submitting DDOs are submitting staff staff pay bill online. The pay bill online. The task task for developing a full- for developing a full- fledged DDO with fledged DDO with provision for submitting provision for submitting all all types of bills online is types of bills online is on- on-going. going. Date -- 14-Mar-2022 16-Oct-2022 -- By June 2022, report from the bank account portal on comprehensive stock-take of government bank accounts and balances including extra-budgetary funds and donor-funded projects by June 2022. DDO online bill submission to include vendor invoices. Implement Procure-to-Pay (P2P) through integration Comments with eGP to support end-to-end digitalization of vendor transactions – See Figure 2 on page 17 of June 2021 aide memoire. ►DLI 5 Improved pension service (disaggregated by gender) through the EFT no later than the following pension payment cycle after retirement (Outcome, 10,000,000.00, 0%) Baseline Actual (Previous) Actual (Current) FY2022 Value Long process often results - The Pension Service - The Pension Service DLR 5.5 90% of in a significant delay after and GPF Module of and GPF Module of new pensioners are retirement to prepare a iBAS++ have been iBAS++ have been paid through EFT no Pension Payment Order implemented and is implemented and is later than the All pension and GP fund operational. operational. Disbursement pension payment records are manual and Disbursement for partial for partial achievement cycle following their prone to human errors achievement has been has been made. retirement made. Verification for the Verification for the next next disbursement is in disbursement is in process. process. - 69.40% pension back - 69.40% pension back log cases have been log cases have been resolved. resolved. - Since September 1, - Since September 1, 2019, all the new 2019, all the new pensioners have been pensioners have been linked to the linked to the employee/payroll employee/payroll database and their database and their monthly pension and monthly pension and allowances are paid allowances are paid through EFT from the through EFT from the first first month of retirement. month of retirement. - Using NID, electronic - Using NID, electronic Pension Payment Order Pension Payment Order (ePPO) has been made (ePPO) has been made fully operational. fully operational. - Deduction of GPF - Deduction of GPF Subscription and Loan Subscription and Loan Repayment are linked Repayment are linked with with Budget Execution Budget Execution Module. Module. 10/21/2022 Page 16 of 23 The World Bank Implementation Status & Results Report Bangladesh Strengthening PFM Program to Enable Service Delivery (P167491) Date -- 14-Feb-2022 16-Oct-2022 -- To raise awareness on new streamline and expedited pension processing procedures, several outreach programs are planned to include the use of communication tools such as electronic and social media. An educational film/video will be prepared explaining the pension payment process. Like the cumulative balance shown on the GPF Summary Slip, for consistency, the GPF Statement and Subsidiary Ledger reports should be improved to also show the cumulative balance. The updated report will be used for the purpose of verification. Comments Gradually rest of the pensioner (264,398) will be brought under the supervision of CADO-F&FM. The target is to complete this process for 70,000 pensioners initially. The face detection-based Life Verification App that is under piloting phase at more than 100 Pay-points for checking accuracy and performance to be made operational by June 2022. Determine the pension service standard and communicate same to pensioners. ►DLI 6 SOE and autonomous bodies’ debt and contingent liabilities statement prepared and submitted to policy makers (Output, 7,000,000.00, 0%) Baseline Actual (Previous) Actual (Current) FY2022 - Virtual stakeholder workshop held on June - Virtual stakeholder 28, 2021 and November workshop held on June 28,2021 in presence of 28, 2021 and November the Senior Secretary of 28,2021 in presence of the FD to finalize the Senior Secretary of FD to Procedure to Regulate finalize the Procedure to the Debt and Contingent Regulate the Debt and Liabilities of State-Owned Contingent Liabilities of Enterprises State-Owned Enterprises (SOEs)/Autonomous (SOEs)/Autonomous Bodies (ABs). Finally, the Bodies (ABs). Finally, the procedure was approved procedure was approved by the Senior Secretary by the Senior Secretary of of FD on 28 December - SOE debt and contingent FD on 28 December 2021 2021 and official liabilities are not effectively and official Government Government Order (GO) controlled Order (GO) issued on issued on December 30, - Partial data of SOEs December 30, 2021. 2021. profitability published in the Value -- annual Economic Survey of - As of November 2021, - As of November 2021, Bangladesh SOE-MC provided a list of SOE-MC provided a list - Fiscal risk assessments 84 SOEs for which of 84 SOEs for which have not been conducted validation is ongoing to validation is ongoing to ascertain publication of ascertain publication of their financial statements their financial statements on individual websites. As on individual websites. at time of the mission in As at time of the mission February 2022, 46 SOEs in February 2022, 46 have uploaded audited SOEs have uploaded financial statements for audited financial FY2020/21 on their statements for respective websites. FY2020/21 on their respective websites. 10/21/2022 Page 17 of 23 The World Bank Implementation Status & Results Report Bangladesh Strengthening PFM Program to Enable Service Delivery (P167491) Date -- 14-Mar-2022 16-Oct-2022 -- The draft comprehensive database of financial and non-financial data and financial monitoring template to be approved by March 2022. Populate database as part of transition to the web-site system. Comments SOE-MC to prepare a Debt and Contingent Liability Statement (DCLS) for the SOEs/ABs using their audited financial statements within nine months of end of each FY. ►DLI 7 Improved performance of the SOE sector and reduced subsidies as a percentage of total public sector spending (Outcome, 11,000,000.00, 0%) Baseline Actual (Previous) Actual (Current) FY2022 Value - SOEs are not classified as - Independent - Independent DLR 7.5 The ratio of commercial and non- Performance Evaluation Performance Evaluation SOE transfers to commercial Guideline (IPEG) that will Guideline (IPEG) that will total public spending - There is some cover 166 SOEs/ABs has cover 166 SOEs/ABs has has been reduced performance monitoring of been approved and been approved and by 15% SOEs, but not systematic Government Order was Government Order was and independent issued in March 2021. issued in March 2021. - Grants to SOEs are not divided into different - Membership of the - Membership of the categories Independent Independent Performance - Partial data of SOEs Performance Evaluation Evaluation Committee profitability published in the Committee (IPEC) for (IPEC) for conducting the annual Economic Survey of conducting the independent performance Bangladesh independent evaluation was officially performance evaluation approved on November was officially approved 14, 2021 and evaluation is on November 14, 2021 expected to start on the and evaluation is first set of 10 SOEs/ABs. expected to start on the first set of 10 SOEs/ABs. - The following 10 SOEs have been selected to - The following 10 SOEs undergo an independent have been selected to performance evaluation in undergo an independent accordance with the performance evaluation approved SOE in accordance with the independent performance approved SOE evaluation guidelines independent (IPEG). performance evaluation 1. Chittagong Port guidelines (IPEG). Authority (CPA) 1. Chittagong Port 2. Bangladesh Bridge Authority (CPA) Authority (BBA) 2. Bangladesh Bridge 3. Bangladesh Overseas Authority (BBA) Employment and Service 3. Bangladesh Overseas Limited (BOESL) Employment and Service 4. Khulna Development Limited (BOESL) Authority (KDA) 4. Khulna Development 5. Bangladesh Inland Authority (KDA) Water Transport Authority 5. Bangladesh Inland (BIWTA) Water Transport 6. Bangladesh Small and Authority (BIWTA) Cottage Industries 6. Bangladesh Small and Corporation (BSCIC) Cottage Industries 7. Bangladesh Power Corporation (BSCIC) Development Board 7. Bangladesh Power (BPDB) Development Board 8. Bangladesh Petrolium (BPDB) Corporation (BPC) 8. Bangladesh Petrolium 9.Bangladesh Shipping Corporation (BPC) Corporation (BSC) 10/21/2022 Page 18 of 23 The World Bank Implementation Status & Results Report Bangladesh Strengthening PFM Program to Enable Service Delivery (P167491) 9.Bangladesh Shipping 10. Bangladesh Forest Corporation (BSC) Industries Development 10. Bangladesh Forest Corporation (BFIDC) Industries Development Corporation (BFIDC) - Data collected for establishment of baseline - Data collected for to reduce the ratio of SOE establishment of baseline transfers to total public to reduce the ratio of spending by 15% by SOE transfers to total FY22. Ascertaining the public spending by 15% comprehensiveness of the by FY22. Ascertaining raw data collected to the comprehensiveness match with the 166 SOEs of the raw data collected that are within the scope to match with the 166 of SOE-MC. SOEs that are within the scope of SOE-MC. Date -- 14-Mar-2022 16-Oct-2022 -- Stakeholder sensitization workshops to be conducted on the Independent Performance Evaluation Guideline (IPEG). Sufficient number SOEs/ABs to be evaluated so that five SOEs can be rewarded and ten SOEs can Comments be selected for turn around strategies. ►DLI 8 Budget holders in MDAs effectively and transparently use financial information (Outcome, 12,000,000.00, 0%) Baseline Actual (Previous) Actual (Current) FY2022 Value -The previous classification - Budget of FY2018-19, - Budget of FY2018-19, DLR 8.6 60% of chart limits financial 2019-20 and 2020-21 2019-20 and 2020-21 Budget Holders reporting and analysis; and released using new released using new generate 10 or more budget controllers do not BACS. The option in the BACS. The option in the monthly iBAS++ use financial reports accounting tab named accounting tab named reports for budget effectively “DDO Budget release “DDO Budget release execution decisions -As at June 2018, the status” shows that status” shows that budget monthly report (in pdf. budget had been had been released format) on fiscal position released through iBAS++ through iBAS++ in DDO’s available on FD website in DDO’s end. end. was for December 2017 (six months behind). - iBAS++ Interfaces - iBAS++ Interfaces -Annual Accounts are completed with completed with produced with a significant Bangladesh Bank, Sonali Bangladesh Bank, Sonali delay and follow the old Bank, MoPA, Social Bank, MoPA, Social templates of finance and Safety net. Work is Safety net. Work is appropriation accounts ongoing to interface with ongoing to interface with eGP and NID/TIN eGP and NID/TIN databases. databases. - A technical report on - A technical report on eGP interface with brief eGP interface with brief System Requirements System Requirements Specification (SRS) has Specification (SRS) has been prepared and been prepared and several meetings have several meetings have been arranged between been arranged between iBAS++ and eGP iBAS++ and eGP (CPTU). (CPTU). - At present, there is - At present, there is backlog of three years for backlog of three years for submission of annual submission of annual financial statements to the 10/21/2022 Page 19 of 23 The World Bank Implementation Status & Results Report Bangladesh Strengthening PFM Program to Enable Service Delivery (P167491) financial statements to Office of the Comptroller the Office of the and Auditor General of Comptroller and Auditor Bangladesh (OCAG). General of Bangladesh Finance Account for (OCAG). Finance FY2017/18 was submitted Account for FY2017/18 to OCAG in November was submitted to OCAG 2021 (i.e., 41 months after in November 2021 (i.e., the year-end). Civil Audit 41 months after the year- Directorate conducting end). Civil Audit audit on Finance Accounts Directorate conducting for FY2016-17 and audit on Finance FY2017-18. New format of Accounts for FY2016-17 Finance Accounts was and FY2017-18. New approved by Honorable format of Finance President on December Accounts was approved 28, 2021. by Honorable President on December 28, 2021. - Six SAEs use iBAS++ on a real-time basis with - Six SAEs use iBAS++ detailed transaction on a real-time basis with capturing; these SAEs are detailed transaction Public Works Department; capturing; these SAEs Roads and Highways; are Public Works Department of Public Department; Roads and Health Engineering; Highways; Department of Controller General of Public Health Defense Force; Forest Engineering; Controller Department and Railways. General of Defense In addition to the SAEs, Force; Forest Bangladesh missions in Department and Abu Dhabi, Dubai, New Railways. In addition to Delhi and Singapore are the SAEs, Bangladesh now using iBAS++. missions in Abu Dhabi, Dubai, New Delhi and - FD has started Singapore are now using publishing budget iBAS++. execution reports on MoF’s official website - FD has started (https://mof.gov.bd/site/re publishing budget ports/a4cf6d30-2002- execution reports on 492e-97eb- MoF’s official website ba3e42840ab6). (https://mof.gov.bd/site/re ports/a4cf6d30-2002- 492e-97eb- ba3e42840ab6). Date -- 14-Mar-2022 16-Oct-2022 -- Comments Need to monitor that budget is released consistently by July 31 of each year to front-line service units. Improve the interface with NBR for use in importing data related to revenue receipts of the government. Also establish interface to improve Revenue Accounting at the Taxpayer level by facilitating reconciliation between VAT returns and collections recorded in the Integrated VAT Administration System (IVAS). Improve the timeliness of submission of annual government-wide financial statements for FY2021/22 to within six months of the year-end and improve thereafter to within three months of each year-end. Roll-out the Integrated Budget and Accounting System Project Management Accounting Portal (IBAS-PMAP) for donor-funded projects and establish API with iBAS++ to support seamless generation of comprehensive financial reports. Improve timeliness, user-friendliness, and level of disaggregation of the published budget execution reports. To facilitate budget execution decisions and assurance of accuracy and comprehensiveness of financial 10/21/2022 Page 20 of 23 The World Bank Implementation Status & Results Report Bangladesh Strengthening PFM Program to Enable Service Delivery (P167491) reports, this DLR will be assessed against PEFA PI 28 ‘in-year budget reports’ to meet the following minimum requirements: (i) coverage and classification of data allows direct comparison to the original budget; and (ii) budget execution reports are prepared quarterly and issued within four weeks from the end of each quarter. ►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) FY2022 Value -Internal audit units are not - It was agreed that - It was agreed that -- effective. internal audit units will be internal audit units will be -Internal audit activities established at established at consist primarily of ex-post departmental-level departmental-level starting reviews focused on starting with high-risk and with high-risk and high- financial compliance high-spending spending departments. -Audit follow-up takes long departments. The The departmental internal time departmental internal audit units will report audit units will report functionally to the functionally to the Principal Accounting Principal Accounting Officer (PAO), who Officer (PAO), who according to section 19(a) according to section of the 2009 Public Moneys 19(a) of the 2009 Public and Budget Management Moneys and Budget Act (PMBMA) is Management Act responsible “to ensure (PMBMA) is responsible efficient and transparent “to ensure efficient and financial management and transparent financial internal control processes management and internal at the relevant Ministry or control processes at the Division or Other relevant Ministry or Institution”. Division or Other Institution”. - The internal audit ‘structure’ established at - The internal audit Finance Division, will be ‘structure’ established at responsible for the Finance Division, will be development of a model responsible for the internal audit charter, development of a model guidelines, risk-based internal audit charter, audit manual, quality guidelines, risk-based assurance and continuous audit manual, quality training. A consulting firm assurance and will be hired to provide continuous training. A technical assistance consulting firm will be including conduct of post- hired to provide technical procurement reviews. assistance including conduct of post- - It was agreed that post- procurement reviews. review of procurement will be conducted at the - It was agreed that post- procurement cell, review of procurement established in the program will be conducted at the office under SPFMS procurement cell, program and entrusted for established in the entire procurement of the program office under program. SPFMS program and entrusted for entire procurement of the program. 10/21/2022 Page 21 of 23 The World Bank Implementation Status & Results Report Bangladesh Strengthening PFM Program to Enable Service Delivery (P167491) Date -- 14-Mar-2022 16-Oct-2022 -- Finalization and approval of Model Internal Audit Charter and Risk Based Internal Audit Manual by June 2022. Analysis of different options for recruitment of Internal Auditors and decision on the right mix of expertise and Comments sourcing. Need to meet with all the selected MDAs to sensitize them on the formation of Internal Audit Units. ►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, 0%) Baseline Actual (Previous) Actual (Current) FY2022 Value PFM reform - Three PFM Action Plan - Three PFM Action Plan DLR 10.6 100 civil implementation, monitoring, Semi-annual progress Semi-annual progress servants (with data and course-correction are report has been report has been approved disaggregated by not adequately coordinated, approved by the SC. by the SC. gender) have and a comprehensive completed change management - All three Independent - All three Independent specialized PFM- approach needs to be Verification Agencies are Verification Agencies are related implemented on board. on board. courses/certification s. - - IPF has finalized 5 - - IPF has finalized 5 research topics. REoI research topics. REoI was was published in published in September September 2021, EoI 2021, EoI received for received for three three research papers and research papers and technical sub-committee technical sub-committee of 3 members headed by of 3 members headed by Dr. Md. Tarique, Director, Dr. Md. Tarique, Director, Bangladesh Institute Bangladesh Institute Governance & Governance & Management (BIGM) is Management (BIGM) is ongoing. ongoing. - A consortium led by the - A consortium led by the CIPFA engaged to support CIPFA engaged to the IPF has delivered: (i) support the IPF has the development of a PFM delivered: (i) the Competency Framework; development of a PFM (ii) a training needs Competency Framework; assessment (TNA) and; (ii) a training needs (iii) a Code of Conduct for assessment (TNA) and; PFM professionals. (iii) a Code of Conduct for PFM professionals. - Field inspection- How to Note has been approved - Field inspection- How to and circulated. Note has been approved and circulated. - Five field inspections to Natore, Kishorgonj, - Five field inspections to Khulna, and Bagerhat Natore, Kishorgonj, have been conducted. Khulna, and Bagerhat have been conducted. - Nine ISCs have been assigned with the - Nine ISCs have been responsibilities of 14 assigned with the components of the PFM responsibilities of 14 Action Plan. components of the PFM Action Plan. 10/21/2022 Page 22 of 23 The World Bank Implementation Status & Results Report Bangladesh Strengthening PFM Program to Enable Service Delivery (P167491) - 19 officials have enrolled - 19 officials have for master’s degree in enrolled for master’s different universities. degree in different universities. Date -- 14-Mar-2022 16-Oct-2022 -- Automation of annual work plan process to ensure effective monitoring of the implementation progress. Arrange for the 2nd PFM Action Plan stakeholder consultation. Comments Select the firm(s) to support the Institute of Public Finance (IPF) to publish at least 3 research papers on PFM reform lessons. 10/21/2022 Page 23 of 23