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 | Governance Global Practice | Recipient Executed Activities | Technical Assistance Loan | FY 2011 | Seq No: 10 | ARCHIVED on 21-Jun-2016 | ISR24285 | Implementing Agencies: Ministry of Finance, Ministry of FInance Key Dates Key Project Dates Bank Approval Date:14-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:30-Jun-2017 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? Yes Board Approved Revised Project Development Objective (If project is formally restructured)PHRPDODEL To further strengthen the efficiency and effectiveness of Afghanistan’s procurement, treasury, and audit systems. Components Name Reform Management:(Cost $3.72 M) Procurement Reform:(Cost $32.46 M) Audit Reform and Performance:(Cost $34.27 M) Financial Management Reform:(Cost $39.84 M) Revenue Mobilization:(Cost $3.84 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 6/21/2016 Page 1 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Public Financial Management Reform II (P120427) Overall Risk Rating  Substantial  Substantial Implementation Status and Key Decisions Following the ISM of October 2015 the Project was restructured to extend the closing date to June 30, 2017. Additional financing of $41.125m was subsequently agreed, and project design updated (project paper dated January 27, 2016). The results framework including PDO was revised in the new project paper. A new component on Revenue Mobilization was added. In April 2016, a combined Tax Administration mission was held to cover three related areas of Bank work, Afghanistan Fiscal Policy and Management (P157286), ARTF Incentive Program (P157723), and the Revenue Mobilization component of P120427. This ISR reports on the latter, This ISR relates to the Revenue Mobilization component only. An implementation support mission is planned for the near future to assess implementation progress of all the components, at which stage the results framework will be updated. 6/21/2016 Page 2 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Public Financial Management Reform II (P120427) 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  Substantial Technical Design of Project or Program  --  Moderate  Moderate Institutional Capacity for Implementation and Sustainability  --  Substantial  Substantial Fiduciary  --  Moderate  Substantial Environment and Social  --  Moderate  Low Stakeholders  --  Low  Moderate Other  --  High  High Overall  --  Substantial  Substantial Results Project Development Objective Indicators PHINDPDOTBL  Donors shift their off-budget official development assistance to Afghanistan to on-budget. (Percentage, Custom) 6/21/2016 Baseline Actual (Previous) Actual (Current) End Target Page 3 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Public Financial Management Reform II (P120427) Value 0.00 62.00 62.00 20.00 Date 01-Sep-2011 01-Oct-2015 01-Oct-2015 30-Jun-2017 PHINDPDOTBL  Reduction in number of days taken by the National Procurement Committee (NPC) to dispose of cases presented to it. (Days, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 10.00 10.00 10.00 7.00 Date 31-Oct-2015 01-Dec-2015 01-Dec-2015 30-Jun-2017 PHINDPDOTBL  Establish a database of, and publicly disclose, National Procurement Committee (NPC) decisions. (Days, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 2.00 2.00 2.00 1.00 Date 01-Dec-2015 01-Dec-2015 01-Dec-2015 30-Jun-2017 PHINDPDOTBL  The Supreme Audit Office commences development of a mechanism for citizen participation in audit. (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Preparation for citizen participation in audit during FY16 leading to development of mechanism for citizen participation in No citizen participation in No citizen participation Value -- audits and audit in audit issuance of policy governing citizen participation in public oversight pf public funds by June 30 2017. 6/21/2016 Page 4 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Public Financial Management Reform II (P120427) Date 01-Dec-2015 01-Dec-2015 01-Dec-2015 30-Jun-2017 PHINDPDOTBL  Increased number of functions carried out by regular ministry staff that were previously carried out by contracted staff. (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Plan in place for FY17 to modify Tashkeel to include functions that Plans currently work in Plans currently work in Value -- are currently progress. progress. undertaken by national consultants. Equivalent FY16 Plan implemented. Date 01-Dec-2015 -- 30-Jun-2016 30-Jun-2017 PHINDPDOTBL  Improved coverage and quality of internal audit. (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 49.00 50.00 50.00 50.00 Date 01-Sep-2011 01-Oct-2015 01-Oct-2015 30-Jun-2017 PHINDPDOTBL  Improved coverage and quality of external audit. (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 49.00 74.00 74.00 75.00 Date 01-Sep-2011 01-Oct-2015 01-Oct-2015 30-Jun-2017 Overall Comments 6/21/2016 Page 5 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Public Financial Management Reform II (P120427) Intermediate Results Indicators PHINDIRITBL  Legal framework, legal documentation and disclosure policy completed and Appeal and Review Committee and the dispute resolution system is functioning (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target During this period, NPA Semi-annual has restructured the report on Administrative Review Appeal and Committee; the new Review Legal framework in place committee will be a Committee Value -- but not operational semi-independent activity. committee with Debarment participation of members notices, if any from private sector and publicly Ministry of Commerce. disclosed. Date 01-Sep-2011 01-Oct-2015 01-Oct-2015 30-Jun-2017 PHINDIRITBL  Number of line ministry and mustofiats procurement staff completing duty-specific procurement training. (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 711.00 711.00 7800.00 Date 01-Sep-2011 30-Jun-2015 30-Jun-2015 30-Jun-2017 PHINDIRITBL  Numbers of human resource management staff completing duty-specific training in their respective specialties (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1020.00 1020.00 750.00 Date 01-Sep-2011 21-Dec-2014 21-Dec-2014 30-Jun-2017 6/21/2016 Page 6 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Public Financial Management Reform II (P120427) 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 30-Jun-2015 30-Jun-2015 31-Dec-2015 PHINDIRITBL  Number of internal audits done to acceptable standards. (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 4 34 34 34 Date 01-Sep-2011 01-Oct-2015 01-Oct-2015 30-Jun-2017 PHINDIRITBL  Number of external audits verified as done to international auditing standards (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target All World Bank Audits. All World Bank Audits. All WB grant Four compliance audits Four compliance audits audits and 9 Value Just WB grant audits completed in 1393 and completed in 1393 and compliance five underway this five underway this year. audits year. Date 01-Sep-2011 01-Oct-2015 01-Oct-2015 30-Jun-2017 PHINDIRITBL  Timely dissemination of in-year budget execution reports. (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 30 days from month end 15 days 15 days 14 days Date 01-Sep-2011 01-Oct-2015 01-Oct-2015 30-Jun-2017 6/21/2016 Page 7 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Public Financial Management Reform II (P120427) PHINDIRITBL  AFMIS upgrade to web based version evaluated (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Implementation Assessment of of Assessment of suitability Web based version of suitability of web based recommendatio Value of web based version of AFMIS not implemented version of AFMIS ns of the AFMIS underway underway assessment completed. Date 01-Sep-2011 01-Oct-2015 01-Oct-2015 30-Jun-2017 PHINDIRITBL  Legal framework and structures for development and regulation of an accounting profession drafted and training plans for professional accountants established (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Training of accountants underway. Monitoring Reports, The draft law is The draft law is pending detailing no legal or oversight Value pending with Ministry of with Ministry of Justice performance framework Justice for approval. for approval. against target to be split by gender in order that baseline can be established. Date 01-Sep-2011 01-Oct-2015 01-Oct-2015 30-Jun-2017 PHINDIRITBL  Timeliness and quality of annual audited financial statements submitted to the legislature and donors (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Qatia and Annual Cash Audited Qatia statements Based submitted to National Financial Assembly within 6 months Statements and of the close of the financial info on 1393 Qatia submitted 1393 Qatia submitted on year liabilities, on time.Cash based time.Cash based Value but they do not include assets and financial statements financial statements cash position of cash position prepared for 1393. prepared for 1393. controlled entities, third submitted to party payments and the legislature information about assets & within 6 months liabilities of the close of the financial year. 6/21/2016 Page 8 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Public Financial Management Reform II (P120427) Date 01-Sep-2011 01-Oct-2015 01-Oct-2015 30-Jun-2017 PHINDIRITBL  Disaster recovery plan and testing (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Disaster recovery plan Revised workplan has Revised workplan has Value no plan in place tested and in been submitted. been submitted. place/implemen ted. Date 01-Sep-2011 01-Oct-2015 01-Oct-2015 30-Jun-2017 PHINDIRITBL  Number of internal audit staff trained and accredited (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 112.00 512.00 512.00 546.00 Date 01-Sep-2011 01-Oct-2015 01-Oct-2015 30-Jun-2017 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 114.13 114.13 0.00 73.37 40.75 64% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date 6/21/2016 Page 9 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Public Financial Management Reform II (P120427) P120427 TF-10024 Effective 09-Aug-2011 09-Aug-2011 09-Aug-2011 31-Dec-2014 30-Jun-2017 Cumulative Disbursements Restructuring History Level 2 Approved on 01-Sep-2014 ,Level 2 Approved on 19-Dec-2015 Related Project(s) P150632-Second Public Financial Management Reform Project (PFMRP II) - Additional Financing 6/21/2016 Page 10 of 10 Public Disclosure Copy