Public Disclosure Copy The World Bank Implementation Status & Results Report LS-PFM Reform Support Project (P143197) LS-PFM Reform Support Project (P143197) AFRICA | Lesotho | Governance Global Practice | IBRD/IDA | Investment Project Financing | FY 2014 | Seq No: 7 | ARCHIVED on 29-Jun-2018 | ISR33230 | Implementing Agencies: Ministry of Finance, Ministry of Finance Key Dates Key Project Dates Bank Approval Date:06-Feb-2014 Effectiveness Date:25-Jul-2014 Planned Mid Term Review Date:08-Apr-2016 Actual Mid-Term Review Date:24-May-2016 Original Closing Date:03-Jul-2017 Revised Closing Date:03-Jun-2019 Project Development Objectives Project Development Objective (from Project Appraisal Document) The project development objective (PDO) is to improve the quality and timeliness of public financial management information in support of the Government’s PFM Reform Action Plan (PFMRAP) to improve budget execution. Has the Project Development Objective been changed since Board Approval of the Project Objective? No PHRPDODEL Components Name Support for improving the stability and reliability of exisitng IFMIS:(Cost $0.53 M) Support for modernization of IFMIS platform:(Cost $2.94 M) Support for change management, training and project management:(Cost $1.51 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO  Moderately Unsatisfactory  Moderately Unsatisfactory Overall Implementation Progress (IP)  Moderately Unsatisfactory  Moderately Unsatisfactory Overall Risk Rating  Substantial  Substantial Implementation Status and Key Decisions 6/29/2018 Page 1 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report LS-PFM Reform Support Project (P143197) Upgrading of the Integrated Financial Management Information System (IFMIS) has commenced with the successful go-live in a very short space of time of the Central Budget Management System, through which the FY 2018/19 budget as tabled in Parliament during February 2018 was prepared. Critical activities to advance the upgrade of the core IFMIS has also been substantially completed during the period under review - the design of the upgraded IFMIS ICT infrastructure and launching of an international bid for the servers and workstations; business process review; initiation of change management activities and development of the training plan. Contractual matters that have affected the deployment of the vendor team has been resolved and imminent mobilization will provide impetus to the initial configuration of the upgraded IFMIS, system testing, training and preparation of data required as opening balances in the upgraded IFMIS. Government has been advised to deepen its oversight and support for the remaining key actions that have a direct bearing on further improving implementation performance, and achievement of the development objective. These are: 1 . Initial operational acceptance of the upgraded IFMIS. With the substantial completion of Government’s business process review, and scope revision at the time of restructuring now contractually fixed with the vendor, it is essential to quickly mobilize the vendor team and to complete the initial configuration of the upgraded IFMIS by the end of September 2018. 2 . Change management and training plans resourced and initiated. The change management process has been initiated, and the training plan is close to finalization. Training materials have been received from the vendor, and the final program needs to be announced and initiated. 3 . The procurement and contracting of servers and end-user equipment for the upgraded IFMIS are underway, and expected to be finalized by the end-September. 4 . Agree on the process to validate opening balances for financial assets and liabilities for take-on in the upgraded IFMIS. The upgraded IFMIS will require opening balances for financial assets and liabilities when it goes live. It is recommended that a specific process be agreed with the Auditor- general to validate such key opening balances in the new IFMIS. 6/29/2018 Page 2 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report LS-PFM Reform Support Project (P143197) 6/29/2018 Page 3 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report LS-PFM Reform Support Project (P143197) Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance  --  Substantial  Substantial Macroeconomic  --  Substantial  Substantial Sector Strategies and Policies  --  Moderate  Moderate Technical Design of Project or Program  --  Moderate  Moderate Institutional Capacity for Implementation and Sustainability  --  Substantial  Substantial Fiduciary  --  Moderate  Moderate Environment and Social  --  Low  Low Stakeholders  --  Moderate  Moderate Other  --  --  -- Overall  --  Substantial  Substantial Results Project Development Objective Indicators PHINDPDOTBL  1. Improved reliablity of in-year budget execution reports from IFMIS (Text, Custom) 6/29/2018 Page 4 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report LS-PFM Reform Support Project (P143197) Baseline Actual (Previous) Actual (Current) End Target Steps have been taken Steps have been taken In-year budget by Government to by Government to execution improve the reliability improve the reliability of reports from the of data in the IFMIS, data in the IFMIS, upgraded including including In-year budget execution IFMIS have no operationalization of operationalization of reports from IFMIS are material new TSA expenditure new TSA expenditure generally considered not to concerns bank accounts and bank accounts and their be reliable, due to lack of regarding data Value their reconciliation with reconciliation with the bank accounts reliability, since the CBL, and piloting of CBL, and piloting of reconciliations and no month-end month-end closing month-end closing month-end closing of the closures are procedures for the procedures for the IFMIS. operational and IFMIS. In-year budget IFMIS. In-year budget TSA bank execution reports have execution reports have reconciliations been developed, but been developed, but are are done are not yet published not yet published on the monthly. on the web. web. Date 30-Nov-2012 04-Dec-2017 14-May-2018 03-Jun-2019 PHINDPDOTBL  2. Improved timeliness and completeness of annual financial statements (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target The FY2018/19 Government eradicated Government eradicated annual financial the 3-year backlog of the 3-year backlog of statements for annual financial annual financial budgetary statements, and the statements, and the central Three-year backlog in the consolidated annual consolidated annual government preparation of annual financial statements for financial statements for continue to be financial statements - 2016/2017 were 2016/2017 were submitted to 2008/09, 2009/10, and submitted within the submitted within the the Office of the 2010/11. IFMIS data to legal timeframe to the legal timeframe to the Auditor-general support annual financial Value Office of the Auditor- Office of the Auditor- within the legal statements for budgetary general. IFMIS general. IFMIS timeframe by central government lacks continues to lack continues to lack 31 August balances for financial complete balances for complete balances for 2019, and assets and financial financial assets and financial assets and contain data liabilities. financial liabilities to financial liabilities to from the support annual support annual financial upgraded financial statements for statements for IFMIS on all budgetary central budgetary central financial assets government. government. and financial liabilities. Date 30-Nov-2012 04-Dec-2017 14-May-2018 03-Jun-2019 PHINDPDOTBL  3. Stock of expenditure arrears available in IFMIS (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target 6/29/2018 Page 5 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report LS-PFM Reform Support Project (P143197) Stock of IFMIS data on the stock expenditure There is no IFMIS data on There is no IFMIS data of expenditure arrears arrears is Value the stock of expenditure on the stock of will only be available available online arrears. expenditure arrears. when the upgraded in the upgraded IFMIS goes live. IFMIS. Date 30-Nov-2012 04-Dec-2017 14-May-2018 03-Jun-2019 PHINDPDOTBL  4. New Treasury Single Account (TSA) bank balances in the IFMIS (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target New TSA recurrent and New TSA recurrent and New TSA bank development development accounts are expenditure bank expenditure bank operational and No new TSA balances are accounts are in Value accounts are in carried forward available in the IFMIS. operation since operation since October into the October 10, 2017, and 10, 2017, and is being upgraded is being reconciled with reconciled with the CBL. IFMIS. the CBL. Date 30-Nov-2012 04-Dec-2017 14-May-2018 03-Jun-2019 Overall Comments Intermediate Results Indicators PHINDIRITBL  1. Improved wide-area network uptime (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 71.42 97.14 97.50 98.50 Date 30-Nov-2012 12-Jun-2017 14-May-2018 03-Jun-2019 6/29/2018 Page 6 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report LS-PFM Reform Support Project (P143197) PHINDIRITBL  2. Improved IFMIS server uptime (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 92.86 97.17 97.80 98.50 Date 30-Nov-2012 12-Jun-2017 14-May-2018 03-Jun-2019 PHINDIRITBL  3. IFMIS users trained (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 40.00 60.00 65.00 80.00 Date 30-Nov-2012 12-Jun-2017 14-May-2018 03-Jun-2019 PHINDIRITBL  4. Line ministry revenue transactions not captured in the IFMIS (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Non-tax Non-tax revenues Bank reconciliation of revenue Bank reconciliation of collected by line ministries revenue transactions transactions revenue transactions are not routinely captured since 2009 for all are recorded since 2009 for all key Value in the IFMIS, and there is except 7 Ministries reliably in the Ministries have been ineffective monitoring at have been completed IFMIS, completed through to Treasury to ensure that through to end March supported by end September 2017. this happens. 2017. timely bank reconciliations. Date 30-Nov-2012 06-Dec-2017 14-May-2018 03-Jun-2019 PHINDIRITBL  5. Business process review completed (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Business Business process Business process review Business process review process review review to support to support configuration of to support configuration to support configuration of the Value the new version of IFMIS of the new version of configuration of new version of IFMIS contracted by not yet IFMIS substantially the new version contracted by not yet started complete. of IFMIS started completed Date 23-Jun-2017 06-Dec-2017 14-May-2018 03-Jun-2019 6/29/2018 Page 7 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report LS-PFM Reform Support Project (P143197) PHINDIRITBL  6. IFMIS servers upgraded (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Servers for new Bidding for servers for Servers for new upgraded Servers for new upgraded new upgraded version of Value version of IFMIS not yet upgraded version of version of IFMIS launched on June procured IFMIS not yet procured IFMIS 6, 2018 operational Date 23-Jun-2017 06-Dec-2017 06-Jun-2018 03-Jun-2019 PHINDIRITBL  7. End-user equipment upgraded (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Bidding for end-user End-user End-user equipment to End-user equipment to equipment to operate equipment Value operate upgraded IFMIS operate upgraded upgraded IFMIS upgraded to not yet procured IFMIS not yet procured launched on June 6, work on new 2018 IFMIS Date 23-Jun-2017 06-Dec-2017 06-Jun-2018 03-Jun-2019 PHINDIRITBL  8. Change management plan initiated (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Change management Change Change management plan Change management Value plan developed and management not yet developed plan not yet developed initiated plan delivered Date 23-Jun-2017 06-Dec-2017 14-May-2018 03-Jun-2019 6/29/2018 Page 8 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report LS-PFM Reform Support Project (P143197) PHINDIRITBL  9. Initial operational acceptance of the upgraded IFMIS (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target IFMIS upgrade CBMS configured, and Initial contracted and business process review operational IFMIS upgrade contracted initiated. CBMS substantially completed. Value acceptance of but not yet started configured and in Vendor team reviewing the upgraded process of being in order to do initial IFMIS achieved deployed. configuration. Date 23-Jun-2017 04-Dec-2017 14-May-2018 03-Jun-2019 Overall Comments Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P143197 IDA-53550 Effective USD 5.50 5.50 0.00 1.78 3.33 35% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P143197 IDA-53550 Effective 06-Feb-2014 24-Feb-2014 25-Jul-2014 03-Jul-2017 03-Jun-2019 Cumulative Disbursements 6/29/2018 Page 9 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report LS-PFM Reform Support Project (P143197) Restructuring History Level 2 Approved on 30-Jun-2017 Related Project(s) There are no related projects. 6/29/2018 Page 10 of 10 Public Disclosure Copy