The World Bank Report No: ISR11846 Implementation Status & Results Philippines Strengthening the Capacity of Public Sector Internal Audit (P120390) Public Disclosure Copy Operation Name: Strengthening the Capacity of Public Sector Internal Audit Project Stage: Implementation Seq.No: 3 Status: ARCHIVED Archive Date: 05-Oct-2013 (P120390) Country: Philippines Approval FY: 2010 Product Line: Institutional Development Fund Region: EAST ASIA AND PACIFIC Lending Instrument: Implementing Agency(ies): Key Dates Board Approval Date 31-Mar-2010 Original Closing Date 04-Jun-2013 Planned Mid Term Review Date Last Archived ISR Date 09-Jul-2012 Effectiveness Date 04-Jun-2010 Revised Closing Date 04-Jun-2013 Actual Mid Term Review Date Project Development Objectives Project Development Objective (from IDF Proposal) The objective of the Grant is to strengthen the institutional framework and enhance the capacity of the public sector internal audit in the Philippines. This grant will have its vital contribution to ensure continuity of the challenging reforms in the critical Public Financial Management area and assist the government to implement its strategy on reforming the internal audit. The Grant will provide critical funding and technical support to the Department of Budget Management (DBM) to enable it to become a fully functioning and effective oversight for the internal audit function and also enable it to work with development partners to facilitate the implementation of IA function across the government agencies. The grant will also strengthen the IA unit of DENR according to the Philippines Government's Internal Audit Manual (PGIAM) as agreed upon among the Government and the Bank and in view of achieving a path towards international standards. The assistance to this implementing agency can be considered as a pilot supporting the overall system of IA function. The support provided by the grant will be twofold: (i) establish systems and mechanisms for the implementation of the internal audit framework, and (ii) capacity building to ensure effective running of internal audit operations. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Public Disclosure Copy Review of internal audit reform activities 0.00 Capacity development 0.00 Audit 0.00 Development of on-line resources system 0.00 Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Unsatisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Unsatisfactory Page 1 of 5 The World Bank Report No: ISR11846 Previous Rating Current Rating Overall Risk Rating Public Disclosure Copy Implementation Status Overview The objective of the Grant is to strengthen the institutional framework and enhance the capacity of the public sector internal audit in the Philippines. This grant will have its vital contribution to ensure continuity of the challenging reforms in the critical Public Financial Management area and assist the government to implement its strategy on reforming the internal audit. The overall implementation progress was slow due to delay in procurement process for selection of consultants. Locations Country First Administrative Division Location Planned Actual Philippines National Capital Region National Capital Region ✔ Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Internal audit strategy endorsed by DBM Date Value Date 31-Oct-2010 04-Jun-2013 04-Jun-2013 Comments Partially completed. DBM agreed to shoulder the remaining 35% of the activities under the consultant's contract that were not delivered by the closing date. Baseline assessment of the IAS of DBM and Date Value Empty Empty Empty DENR to ensure compliance with the NGICS, Sub Type Date 31-Oct-2010 04-Jun-2013 04-Jun-2013 PGIAM and other related issuances/applicable Breakdown Comments Completed. Completed international standards and practices. Baseline assessment reports were produced on selected Public Disclosure Copy Internal Control Systems of DBM, and DENR. DBM: (i) Cash collection and deposit; and (ii)Payroll approval and payment. DENR: (i) Cadastral survey operations; (ii) Project management of the Philippines Climate Change Adaptation Project Phase I; and (iii) Project management Page 2 of 5 The World Bank Report No: ISR11846 and procurement processes in the Management Information Systems Division. Develop of an Internal Audit strategy, including Date Value Empty Empty Empty Public Disclosure Copy conducting seminar for the purpose, to help Sub Type Date 31-Oct-2010 04-Jun-2013 04-Jun-2013 effective implementation of the internal audit Breakdown Comments Not yet completed DBM agreed to complete this reform. activity after the closing date. DBM will provide counterpart funds for the remaining 35% of the activities under the consultant's contract that were not delivered by the closing date. Endorsement by DBM to use the fine-tuned Date Value Empty Empty Empty PGIAM Date 31-Oct-2010 04-Jun-2013 04-Jun-2013 Comments Partially Completed. DBM agreed to complete this Baseline assessment reports activity after the closing date. were produced on selected DBM will provide counterpart Internal Control Systems of funds for the remaining 35% DBM, and DENR. of the activities under the DBM: (i) Cash collection and consultant's contract that deposit; and (ii)Payroll were not delivered by the approval and payment. closing date. DENR: (i) Cadastral survey operations; (ii) Project management of the Philippines Climate Change Adaptation Project Phase I; and (iii) Project management and procurement processes in the Management Information Systems Division. Capacity Development Date Value Empty Empty Empty Public Disclosure Copy Date 31-Oct-2012 04-Jun-2013 04-Jun-2013 Comments Ongoing Ongoing 1) The training materials were developed; 2) Ongoing classroom training provided to internal auditors in line agencies; 3) On-the- job training provided to theDBM and DENR's Internal Page 3 of 5 The World Bank Report No: ISR11846 Audit Service personnel in the conduct of a baseline assessment of the Internal Control Systems on the Public Disclosure Copy following functional areas: - DBM: (i) Cash collection and deposit; and (ii)Payroll approval and payment. - DENR: (i) Cadastral survey operations; (ii) Project management of the Philippines Climate Change Adaptation Project Phase I; and (iii) Project management and procurement processes in the Management Information Systems Division. Use of online resources system by internal Date Value Empty Empty Empty audit staff Date 31-Oct-2012 04-Jun-2013 04-Jun-2013 Comments Dropped Data on Financial Performance (as of 17-Jun-2010) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P120390 TF-96641 Closed 14-May-2010 04-Jun-2010 04-Jun-2010 04-Jun-2013 04-Jun-2013 Disbursements Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P120390 TF-96641 Closed USD 0.30 0.30 0.00 0.00 0.30 0.00 Public Disclosure Copy Disbursement Graph Page 4 of 5 The World Bank Report No: ISR11846 Public Disclosure Copy Key Decisions Regarding Implementation There is no major or critical issues except for the delay in procurement process. Restructuring History There has been no restructuring to date. Related Projects There are no related projects. Public Disclosure Copy Page 5 of 5