Public Disclosure Copy The World Bank Implementation Status & Results Report Capacity Building for MNAO through Establishing a Countinuing Professional Development Strategy and Program (P155305) Capacity Building for MNAO through Establishing a Countinuing Professional Development Strategy and Program (P155305) EAST ASIA AND PACIFIC | Mongolia | Governance Global Practice | Recipient Executed Activities | Investment Project Financing | FY 2016 | Seq No: 1 | ARCHIVED on 29-Jun-2016 | ISR24462 | Implementing Agencies: Mongolia National Audit Office Key Dates Key Project Dates Bank Approval Date:22-Jan-2016 Effectiveness Date:04-Feb-2016 Original Closing Date:30-Aug-2018 Revised Closing Date:30-Aug-2018 Project Development Objectives Project Development Objective (from Project Appraisal Document) The main objective of the proposed project is to strengthen MNAO’s capacity, primarily in financial audit and audit firm contracting and oversight. To achieve this objective a comprehensive and systematic continuing professional development strategy together with a time-bound action plan that is needs-driven, tailored and sustainable will be developed and implemented. For this purpose, the current capacity strengths and gaps in financial audit and related areas will be independently assessed by a peer SAI. In parallel to this assessment, MNAO personnel will be surveyed and participate in focus groups to identify their requests for and perceptions of their professional development needs and alternative means to achieve these objectives. The results of the financial audit peer review and the knowledge and learning needs assessment to be carried out under this proposed project, as well as the 2010 performance audit peer review, will feed into development of a CPD strategy for the institution that will then be developed into a 3-year knowledgeand learning program. Furthermore, as part of the project, tailored training materials will be developed and actual training will be delivered to MNAO staff as per the CPD strategy and the knowledge and learning program. While the specific content and depth of topics to be covered under the CPD program are largely to be identified and tailored as per the assessments to be carried out, an early indication of capacity gaps reveals such areas as MNAO staff’s knowledge and understanding of the relevant standards, i.e. IPSAS and the newly translated ISSAIs, quality control, contracting and quality assurance of private audit firm engagements, and audit of the consolidated financial statements of the Government. 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  --  Satisfactory 6/29/2016 Page 1 of 6 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Capacity Building for MNAO through Establishing a Countinuing Professional Development Strategy and Program (P155305) Overall Implementation Progress (IP)  --  Satisfactory Implementation Status and Key Decisions Since the effectiveness of the project declared on February 4, 2016, the project has made a satisfactory progress and has so far carried out the following activities. On March 16, a half-day inception workshop was organized for the relevant officials of MNAO including the Auditor-General, members of the project steering committee as well as staff and mangers from the relevant departments e.g. the Strategy and Management Department as the main implementing body as well as the Financial, Performance and Compliance Audit Departments. The purpose of the workshop was to bring everyone on the same page with regards to the planned activities of the project, clarify roles and responsibilities of the different players at MNAO in implementation of the project and to hear any comments from the MNAO staff for more effective and better implementation of the project. Following the inception workshop, the Bank team then had another more detailed technical meeting with the managers of the Strategy and Management Department of MNAO to discuss the project overall work plan and the terms of references for the consulting services to be procured in the immediate future including the one for the peer review activity, which is a prerequisite for the remaining planned activities. In due course, a final draft project work plan was prepared by MNAO together with a detailed budget and was submitted to the Bank's review and no objection after the Bank team's comments have been reflected on the initial drafts. Furthermore, the terms of reference for the financial audit peer review has been prepare and finalized as of the ISR date. The UK National Audit Office (NAO) has been identified as a potential peer reviewer for MNAO and the Bank team is currently discussing with the UK NAO on the proposed dates of the peer review that is currently planned to take place in the fall of 2016. Upon completion of the peer review and provision of the recommendations, the remaining project activities will take shape as planned. The project has withdrawn its initial advance of USD 75,000 from the Bank on June 15, 2016. 6/29/2016 Page 2 of 6 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Capacity Building for MNAO through Establishing a Countinuing Professional Development Strategy and Program (P155305) Risks Overall Risk Rating Risk Category Rating at Approval Previous Rating Current Rating Overall  Moderate  --  Moderate Comments There has been no change to the project risk assessment at this time. The main risks of the project remain associated with MNAO's capacity to manage the project effectively to ensure the timely and efficient implementation and completion of the planned project activities. Results Project Development Objective Indicators PHINDPDOTBL MNAO has made demonstrable progress in implementing the targeted improvements which emerge from the financial audit peer review (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 25.00 Date 11-Jan-2016 -- 28-Jun-2016 31-Aug-2018 PHINDPDOTBL MNAO auditors have been trained in the priority areas identified by the CPD strategy and action plans (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 50.00 Date 11-Jan-2016 -- 28-Jun-2016 31-Aug-2018 PHINDPDOTBL MNAO has utilized a strengthened procedure for selection of private audit firms contracted to conduct audits of government entities (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N -- N Y 6/29/2016 Page 3 of 6 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Capacity Building for MNAO through Establishing a Countinuing Professional Development Strategy and Program (P155305) Date 11-Jan-2016 -- 28-Jun-2016 31-Aug-2018 Overall Comments The project implementation is on track and it has not yet reached the time in its implementation to meet the target results. Intermediate Results Indicators PHINDIRITBL Apeer review report including recommendations for improvement of MNAO’s financial audit capabilities submitted (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N -- N Y Date 11-Jan-2016 -- 28-Jun-2016 31-Aug-2018 PHINDIRITBL Report on MNAO training needs assessment (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N -- N Y Date 11-Jan-2016 -- 28-Jun-2016 31-Aug-2018 PHINDIRITBL CPD strategy and an action plan have been developed and adopted (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N -- N Y Date 11-Jan-2016 -- 28-Jun-2016 31-Aug-2018 6/29/2016 Page 4 of 6 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Capacity Building for MNAO through Establishing a Countinuing Professional Development Strategy and Program (P155305) PHINDIRITBL Materials developed for 50% of the courses included in the CPD action plan (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 50.00 Date 11-Jan-2016 -- 28-Jun-2016 31-Aug-2018 PHINDIRITBL Selection procedure for private audit firms that would perform contracted audits developed (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N -- N Y Date 11-Jan-2016 -- 28-Jun-2016 31-Aug-2018 Overall Comments The project implementation is on track and it has not yet reached the time in its implementation to meet the target results indicators. Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P155305 TF-A1838 Effective USD 0.38 0.38 0.00 0.08 0.31 20% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P155305 TF-A1838 Effective 22-Jan-2016 04-Feb-2016 04-Feb-2016 30-Aug-2018 30-Aug-2018 Cumulative Disbursements 6/29/2016 Page 5 of 6 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Capacity Building for MNAO through Establishing a Countinuing Professional Development Strategy and Program (P155305) Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 6/29/2016 Page 6 of 6 Public Disclosure Copy