Public Disclosure Copy The World Bank Implementation Status & Results Report Bhutan Institutional Capacity Development of the Royal Audit Authority Project (P155150) Bhutan Institutional Capacity Development of the Royal Audit Authority Project (P155150) SOUTH ASIA | Bhutan | Governance Global Practice | Recipient Executed Activities | Investment Project Financing | FY 2015 | Seq No: 3 | ARCHIVED on 21-Jun-2018 | ISR33044 | Implementing Agencies: Royal Audit Authority, Ministry of Finance, Royal Government of Bhutan Key Dates Key Project Dates Bank Approval Date:18-Jun-2015 Effectiveness Date:23-Jul-2015 Original Closing Date:30-Jun-2018 Revised Closing Date:30-Jun-2018 Project Development Objectives Project Development Objective (from Project Appraisal Document) The objective of the Project is to enhance the effectiveness of the RAA by improving its operational capacity to produce and disseminate quality audit reports as per ISSAIs. Has the Project Development Objective been changed since Board Approval of the Project Objective? No PHRPDODEL Components Name Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO  Moderately Satisfactory  Satisfactory Overall Implementation Progress (IP)  Moderately Satisfactory  Satisfactory Implementation Status and Key Decisions 1 . The results framework for the project was discussed and following is the current status: 1 . Project Development Objective Indicator: The second year target of PDO indicator of 10% ISSAI based reports issued was achieved. For the third or the final year, RAA has included this indicator in the annual target and results agreed with Government Performance Management Division (GPMD) for FY17/18. 2 . Intermediate Results Indicators: Against the third-year target of 16 SMEs and 20 ETs, RAA has trained 16 SMEs and 54 ETs. Similarly, 6/21/2018 Page 1 of 4 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Bhutan Institutional Capacity Development of the Royal Audit Authority Project (P155150) RAA has developed 12 ISSAI based training materials as against the target of 10. 2 RAA has signed a pro-bono contract with INTOSAI Development Initiative (IDI) for support on ISSAI Implementation Initiative (3i Programme) Phase II Pilot SAI Bhutan. The contract has three components: Component I: Facilitate design and development of ISSAI based course materials for Performance Audit, Compliance Audit and Financial Audit along with six mentors from SAI Bhutan. Component II: Facilitate training of 60 Subject Matter Experts and Training of Trainers co-facilitated by six mentors from SAI Bhutan. Component III: Facilitate and support implementation of ISSAIs in the Royal Audit Authority. While the components I and II have already been implemented, the Component III is expected to be completed by July 2018. 3 Component wise progress: 1 . Component A: Training of Subject Matter Experts (SME) and Expert Trainers (ET): Twelve (12) auditors have been trained as SMEs in Performance Audit, Compliance Audit and Financial Audit and 54 (fifty four) auditors have been trained as ETs with help of IDI at International Centre for Information Systems and Audit (iCISA), Noida, India. Another four (4) auditors were trained as SMEs in HR & Communication Strategies at Bangkok in January 2017. The training of SMEs and ETs stands completed. 2 . Component B: Development of Professional Development Courses based on ISSAIs, training of auditors, pilot audits and audit costs: RAA has developed twelve (12) ISSAI based training materials against the second year target of four (4). These twelve training materials are (a) Planning, Execution and Reporting of Financial Audit, Compliance Audit and Performance Audit and (b) review of Financial, Compliance and Performance audit manuals aligning with ISSAIs. As against 15 pilot audits originally planned, RAA carried out 6 pilot audits since these many audits were believed to be sufficient to meet the overall objective of the Project. The 6 pilot audits were: 1. Financial Audit of National Land Commissions, 2. Financial Audit of Wangduephodrang Dzongkhag, 3. Compliance Audit of Thimphu Thromde 4. Compliance Audit of Department of Medical Service, 5. Performance Audit of provision of drinking Water under Thimphu Thromde and 6. Performance Audit of delivery of health services at JDWNRH. Risks Overall Risk Rating Risk Category Rating at Approval Previous Rating Current Rating Overall  --  Low  Low Results Project Development Objective Indicators PHINDPDOTBL Improved audit approaches and methodologies impacting on the quality of audits and reporting (measured by percentage of ISSAIs complied audit reports issued) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 10.00 40.00 Date 01-Jul-2015 24-Nov-2015 15-Dec-2017 30-Jun-2018 Overall Comments 6/21/2018 Page 2 of 4 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Bhutan Institutional Capacity Development of the Royal Audit Authority Project (P155150) Intermediate Results Indicators PHINDIRITBL SMEs trained (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 2.00 12.00 16.00 16.00 Date 01-Jul-2015 20-Dec-2016 15-Dec-2017 30-Jun-2018 PHINDIRITBL ETs trained (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 10.00 54.00 54.00 20.00 Date 01-Jul-2015 20-Dec-2016 15-Dec-2017 30-Jun-2018 PHINDIRITBL Develop ISSAI based training material (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 12.00 12.00 10.00 Date 01-Jul-2015 20-Dec-2016 15-Dec-2017 30-Jun-2018 Overall Comments Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P155150 TF-A0417 Effective USD 0.28 0.28 0.00 0.27 0.00 99% 6/21/2018 Page 3 of 4 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Bhutan Institutional Capacity Development of the Royal Audit Authority Project (P155150) Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P155150 TF-A0417 Effective 18-Jun-2015 23-Jul-2015 23-Jul-2015 30-Jun-2018 30-Jun-2018 Cumulative Disbursements Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 6/21/2018 Page 4 of 4 Public Disclosure Copy