Public Disclosure Copy The World Bank Implementation Status & Results Report Public Financial Management Reform II (P120427) Public Financial Management Reform II (P120427) SOUTH ASIA | Afghanistan | Financial Management Global Practice | Recipient Executed Activities | Technical Assistance Loan | FY 2011 | Seq No: 7 | ARCHIVED on 02-Feb-2015 | ISR17820 | Implementing Agencies: Key Dates Key Project Dates Board Approval date:23-Jun-2011 Effectiveness Date:09-Aug-2011 Planned Mid Term Review Date:01-Nov-2013 Actual Mid-Term Review Date:01-Nov-2013 Original Closing Date:31-Dec-2014 Revised Closing Date:31-Dec-2015 Project Development Objectives Project Development Objective (from Project Appraisal Document) The proposed PDO is to strengthen public financial management through effective procurement, treasury and audit structures and systems in line with sound financial management standards of monitoring, reporting and control. Has the Project Development Objective been changed since Board Approval of the Project Objective? No PHRPDODEL Components Name Reform Management:(Cost $2.95 M) Procurement Reform:(Cost $22.47 M) Audit Reform and Performance:(Cost $25.70 M) Financial Management Reform:(Cost $24.88 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO  Moderately Satisfactory  Moderately Satisfactory Overall Implementation Progress (IP)  Moderately Satisfactory  Moderately Satisfactory Overall Risk Rating  --  Moderate 2/2/2015 Page 1 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Public Financial Management Reform II (P120427) Implementation Status and Key Decisions Moderately satisfactory 1. Procurement. The Government has expressed its intention to centralize procurement but technical assistance is currently aligned to support decentralized procurement. Clarification of Government’s intentions is urgently needed before technical assistance activities in the new fiscal year get underway. 2. AFMIS Data Center. MOF has made a significant investment in IT and now has a data center that would provide higher performance and support i read-only access to AFMIS via the internet. MOF has yet to effect the transition to the new center which should be a priority for Q1 of 2015. 3. Internal Audit. The Internal Audit Dept of MOF is carrying-out work to a high std of ministries identified for the ARTF Incentive Program of World Bank Grants. Otherwise this great capacity is not being used to select and audit areas of high risk which would be an enormous contribution to management oversight of the new Government. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance  --  --  Substantial Macroeconomic  --  --  Substantial Sector Strategies and Policies  --  --  Moderate Technical Design of Project or Program  --  --  Moderate Institutional Capacity for Implementation and Sustainability  --  --  Moderate Fiduciary  --  --  Moderate Environment and Social  --  --  Low Stakeholders  --  --  Low 2/2/2015 Page 2 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Public Financial Management Reform II (P120427) Other  --  --  Low Overall  --  --  Moderate Results Project Development Objective Indicators PHINDPDOTBL  PEFA Ratings for internal audit (P-21) improve to B (3) . (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 2.00 2.00 2.00 3.00 Date 01-Sep-2011 29-May-2014 21-Dec-2014 31-Dec-2015 Comments Internal audit of the MOF is limited by law to its own ministry but in practice it has carried out audits to a high std of other ministries for the ARTF Incentive Program and of World Bank grants. If the legal provisions are lifted the project could meet the PDO goal by end of 2015. This change is in the Gov plans annouced at the London Conference. PHINDPDOTBL  Donors shift 20% of off-budget ODA to on-budget (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 20.00 57.60 20.00 Date 01-Sep-2011 29-May-2013 21-Dec-2014 31-Dec-2015 Comments The advance toward the PDO indicator of “Donors shift 20% of their off-budget official development assistance to Afghanistan to on- budget” is satisfactory. While ODA has fallen since the base year of 1390, in relative terms on-budget aid grew significantly as Donors had a total of 18.0 % of their aid on-budget in 1390 and it is estimated that will come to 57.6 % for FY 1393. PHINDPDOTBL  PEFA ratings for external audit (P26) improve to B (3) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 2.00 2.50 2.50 3.00 Date 01-Sep-2011 29-May-2014 21-Dec-2014 31-Dec-2015 2/2/2015 Page 3 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Public Financial Management Reform II (P120427) Comments The Office of the Audtor General ( SAO) with the technical assistance of CoWaters for the compliance audits and S.N. Nanda for the World Bank grant audited approx 68% of government operations in 2014, based on SY 1392 expenditures, this is very near the 75% criteria set for PEFA PI 26 rating of B. PHINDPDOTBL  % of of procurement done by LM using stand-alone procurment (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 48.00 48.00 50.00 Date 01-Sep-2011 29-May-2014 21-Dec-2014 31-Dec-2015 PHINDPDOTBL  Number of functions carried out by regular ministry staff (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 17.00 17.00 20.00 Date 01-Sep-2011 29-May-2014 21-Dec-2014 31-Dec-2015 Overall Comments Intermediate Results Indicators PHINDIRITBL  No of Procurement units of LMs and provincial offices restructured (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 7.00 13.00 47.00 61.00 Date 01-Sep-2011 29-May-2014 21-Dec-2014 31-Dec-2015 Comments All HQ units (45) and 2 provinces. 2/2/2015 Page 4 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Public Financial Management Reform II (P120427) PHINDIRITBL  No of staff completing procurement training and accredited. (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1400.00 1917.00 1800.00 Date 01-Sep-2011 29-May-2014 21-Dec-2014 31-Dec-2015 PHINDIRITBL  No of HR staff trained (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 120.00 1020.00 750.00 Date 01-Sep-2011 29-May-2014 21-Dec-2014 31-Dec-2015 Comments Originally only HR staff targeted but this has expanded to all staff and general management training now covered. This has contributed to overall goals of the project. PHINDIRITBL  LM PFM assessment (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target 14 Value 2 assessments underway 14 14 assessments completed Date 01-Sep-2011 29-May-2014 21-Dec-2014 31-Dec-2015 PHINDIRITBL  Internal audit - no of audits evaluated as done to acceptable std (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 4 4 15 34 Date 01-Sep-2011 29-May-2014 21-Dec-2014 31-Dec-2015 Comments Under the ARTF IP program MOF IA submitted 15 audit reports which are all considered to meet requisite stds. These related to 3 different fiscal years and 15 ministires. No considered in this total are the internal audits of WB projects which could be considered before project completion. 2/2/2015 Page 5 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Public Financial Management Reform II (P120427) PHINDIRITBL  External audit - number done to ISA (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target All WB grant audits and 9 Value Just WB grant audits 6 7 compliance audits Date 01-Sep-2011 29-May-2014 21-Dec-2014 31-Dec-2015 Comments Under the ARTF IP SAO with the expert input of UNDP funded advisor in FY 1392 and CoWaters in FY 1393 completed the compliance audit of 7 ministries whose work has been accepted by the WB as meeting INTOSAI stds as follows: MoEd, MOPH, MOPW, MDLSA, MoI, MoD, MRRD. Similarly, all WB grants have been carried out to acceptable stds in SY 1393 on SY 1392 financials. PHINDIRITBL  Timeliness, quality of in-year execution reports (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 30 days from month end 25 days 20 days 14 days Date 01-Sep-2011 29-May-2014 21-Dec-2014 31-Dec-2015 PHINDIRITBL  Freebalance V 7 implemented (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Test version of FB V7 Visit to FB for now set-up in Kabul and implemented Value not implemented configuration of demo tests to be run in Q1 , for all sites version set for August 2015 Date 01-Sep-2011 29-May-2014 21-Dec-2014 31-Dec-2015 2/2/2015 Page 6 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Public Financial Management Reform II (P120427) PHINDIRITBL  Legal Framework for Accounting Profession is established (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target NSC has been Legal established and English framework no legal or oversight Value NSC has not yet met. version of draft law agreed and framework prepare. Dari version to training go to NSC in Q1 of 2015 underway Date 01-Sep-2011 29-May-2014 21-Dec-2014 31-Dec-2015 PHINDIRITBL  Timeliness and quality of audited statements to Parliament (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Sept 22 budget On track to present 1392 Qatia send to execution and Sept 22 just budget Value 1392 Qatia on time to Parliament within limit IPSAS execution Parliament set by PEFM Law compliant Financials Date 01-Sep-2011 29-May-2014 21-Dec-2014 31-Dec-2015 PHINDIRITBL  Disaster recovery plan and testing (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target temp site in place but plan in place Value no plan in place temp site in place detailed procedures and tested pending Date 01-Sep-2011 29-May-2014 21-Dec-2014 31-Dec-2015 PHINDIRITBL  Internal Audit - no of staff trained (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 112.00 134.00 184.00 360.00 Date 01-Sep-2011 29-May-2014 21-Dec-2014 31-Dec-2015 Comments 50 additional IA of line ministries were trained in the comprehensive ATP II course. Not reflected here is the total of 25 of staff given specilized training coursed. 2/2/2015 Page 7 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Public Financial Management Reform II (P120427) Overall Comments Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P120427 TF-10024 Effective USD 73.00 73.00 0.00 49.81 23.19 68% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P120427 TF-10024 Effective 09-Aug-2011 09-Aug-2011 09-Aug-2011 31-Dec-2014 31-Dec-2015 Cumulative Disbursements Restructuring History Level 2 Approved on 01-Sep-2014 2/2/2015 Page 8 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Public Financial Management Reform II (P120427) Related Project(s) P150632-Second Public Financial Management Reform 2/2/2015 Page 9 of 9 Public Disclosure Copy