The World Bank Implementation Status & Results Report Ethiopia PFM Project (P150922) Ethiopia PFM Project (P150922) AFRICA | Ethiopia | Governance Global Practice | IBRD/IDA | Investment Project Financing | FY 2016 | Seq No: 9 | ARCHIVED on 20-Apr-2020 | ISR41181 | Implementing Agencies: MOF-ETHIOPIA, Ministry of Finance (MoF) Key Dates Key Project Dates Bank Approval Date: 26-Feb-2016 Effectiveness Date: 18-May-2016 Planned Mid Term Review Date: 27-Jul-2018 Actual Mid-Term Review Date: 13-Jun-2018 Original Closing Date: 07-Apr-2020 Revised Closing Date: 07-Apr-2021 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The PDO is to improve efficiency, transparency and accountability of public expenditure at the federal and regional levels. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Expenditure Management amd Information Systems Support:(Cost $22.45 M) Strengthening Accountability Institutions:(Cost $9.41 M) Project Management, Monitoring and Evaluation:(Cost $1.14 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 Overall Risk Rating Substantial Substantial Implementation Status and Key Decisions Overall Implementation Performance: The Bank team notes the important progress made by the project authorities since last ISR of October 2019 in terms of enhanced oversight, coordination, staffing capacity, etc. The project made important progress in the roll-out of the IFMIS (the building block around which the Bank technical assistance takes place). IFMIS has been now rolled out to 147 sites with the finalization of cycle 6 roll out of 29 sites and cycle 7 roll-out for 30 sites has commenced which was planned to be completed in April 2020. In addition good progress has been made in implementation of number of important PFM reforms that underpin the IFMIS such as program budgeting, debt management, and treasury single account. Institutionalized Trainings are being conducted at Federal level and in regions and in EFY 2012 about 5,800 participants were trained on PFM, 47% of them were female. In addition, the Project is progressing in the development and initiation of the e-government 4/20/2020 Page 1 of 8 The World Bank Implementation Status & Results Report Ethiopia PFM Project (P150922) procurement system. Slower progress has been made regarding the Component 2-"Strengthening Accountability Institutions”. Some activities have slowed due to the COVID 19 crisis, and the Bank is engaging with the project team to address business continuity. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Moderate Substantial High Macroeconomic Moderate Substantial Substantial Sector Strategies and Policies Moderate Substantial Substantial Technical Design of Project or Program Moderate Moderate Moderate Institutional Capacity for Implementation and Substantial Substantial High Sustainability Fiduciary Moderate Substantial Substantial Environment and Social Moderate Low Low Stakeholders Moderate Moderate Moderate Other -- -- -- Overall Moderate Substantial Substantial Results PDO Indicators by Objectives / Outcomes Improve efficiency, transparency and accountability of public expenditure at fed and regional levels IN00825521 ►Reduced cash float for the Federal and Regional Governments (in percent of the annual federal budget) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 22.00 10.15 15.70 18.70 Date 30-Dec-2015 28-Jun-2019 06-Apr-2020 07-Apr-2021 The data is collected from 2010 EFY Financial statements of the federal government. Data of the Federal cash amount on EFY 2010 shows birr 36,561,338,397.57 and the total adjusted budget approved was birr 360,338,330,217.20. Therefore 36,561,338,397.57 / 360,338,330,217.20 X 100 = 10.15 % In addition to this, overall those public bodies which are not following the rules and Comments: procedures of PFM laws were accounted by the newly enacted penalty directive. According to this until this report is prepared 150 public bodies were penalized for not adhering to reporting related to budget performance reporting, account and internal audit report submission, audit finding rectification and others. These strengthened and have substantial effect on the PFM system as well. The 2011 EFY result is 15.7% 4/20/2020 Page 2 of 8 The World Bank Implementation Status & Results Report Ethiopia PFM Project (P150922) IN00825522 ►Timely disclosure of key fiscal/budget documents (Months, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 24.00 11.00 11.00 9.00 Date 30-Dec-2015 28-Jun-2019 06-Apr-2020 07-Apr-2021 MOF provided the following explanations : Timely disclosure of key fiscal /budget documents: PEFA PI-10 This indicator was calculated on the disclosure of key fiscal/budget specified on PEFA PI-10 only the audit Comments: financial statement disclosure. This has been prepared and posted on MoF’s website www.mofed.gov.et and send also to publicize on the newspaper of Addis Zemen. IN00825523 ►Target agencies progressively increase number of contracts awarded within agreed benchmark of 180 days for works contrcts > US$5million & Goods >US$500,000 (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 10.00 74.50 74.50 50.00 Date 30-Dec-2015 28-Jun-2019 28-Jun-2019 07-Apr-2021 MOF provided the following explanations: In 2009 EFY (FY17) out 39 ERA projects 29 of them are awarded with less than 180 days, Ministry of Agriculture awarded one of its projects with 132 days. PPDS awarded out of 19 projects 11 of them are Comments: awarded less than 100 days. In general, out of 51 projects 38 of them are awarded less than 180 days. Therefore, it was calculated as 38/51*100= 74.5 The 2010 and 2011 data is not available IN00825524 ►Increase in the percentage of audits conforming to International Standards of Supreme Audit Institutions (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target MOFEC /OFAG MOFEC /OFAG provided provided a progress a progress update on the update on the audits audits (details are in the Value NA (details are in the NA attached AM results attached AM results matrix- annex 1, matrix- annex 1, attachment 1) attachment 1) Date 30-Dec-2015 28-Jun-2019 28-Jun-2019 31-Dec-2020 MOFEC /OFAG provided a progress update on the audits but no percentages of change in the use of international standards has been provided. AFROSAI-E carried out the audit quality reviews each year but did not present a percentage change in the application of standards to the number of audits produced. Comments: The OFAG selected some indicators and follow up on the progress. End targets have not been set either. this will also be considered as part of the M&E monitoring to update all baselines, targets and actuals. IN00825525 ►Direct Beneficiaries, who are recipients of the training provided by the project (disaggregated by Gender) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target 4/20/2020 Page 3 of 8 The World Bank Implementation Status & Results Report Ethiopia PFM Project (P150922) Value 47,000.00 66,797.00 72,600.00 84,000.00 Date 30-Dec-2015 28-Jun-2019 06-Apr-2020 07-Apr-2021 In 2009 EFY(2017) 5250 were trained with 39.35% female participation. In 2010 EFY (2018) overall 7465 trainees were trained at federal and regional level with 33.8% of female participation. Therefore, the cumulative rolling data shows 59,715 were trained. As per the information in up to July 7/2018. In 2011 (9 months) 7,082 trained with 59.4% female participation.so, the cumulative rolling data shows 66,797. In EFY 2012 up to April 2020 about 5803 participants were trained with a 47.35% female participation. So, the cumulative rolling data shows 72,600. The following were areas training were delivered so far:  PFM Institutional Training at Federal and Regional, Comments:  Short term training on PFM at regional and Federal Level,  IFMIS and IBEX training,  Professional Training on procurement and Property administration  Woreda council members training  Woreda Ethics officers training  Fraud and corruption complaint handling and resolution, disclosure of asset  Accounting and auditing standards training Intermediate Results Indicators by Components Expenditure Management and Information Systems Support IN00825526 ►Increase in budget execution rate in targeted sectors (Health, Education, Agriculture, and Water) - in percent of budgeted expenditure in sector at the Regional level (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 55.00 92.91 87.37 75.00 Date 30-Dec-2015 18-Dec-2018 06-Apr-2020 07-Apr-2021 MoF reports The targeted agencies budget execution rate for 2009 EFY was 90.45%. The 2009 EFY total adjusted budget the selected sectors was birr 100,497,810,000 and the actual expenditure was birr 90,899,900,000. Therefore the executing rate becomes 90,899.90/100,497.81*100 = 90.45% And in 2010 EFY the performance shows 92.91 % which was calculated as actual expenditure over the sectors approved budget. i.e. (75,153,829,000*100)/80,887,905,000=92.91%. The 2011 EFY performance shows 87.37% as follows: Intermediate Result Indicator One 2011 EFY Comments: In million Type Sector Budget Utilization Capital Agriculture 7714.6 3396.7 Water 10468.9 9588 Health 5248 2853.2 Education 6843.5 5396.5 4/20/2020 Page 4 of 8 The World Bank Implementation Status & Results Report Ethiopia PFM Project (P150922) 30,275.0 21,234.4 0 0 Recurrent Agriculture 14820.6 11464.9 Water 3609.2 3415.2 Health 23737.3 21738.8 Education 48337 47672.4 90,504.1 84,291.3 0 0 120,779.1 105,525.7 Total 87.37 0 0 IN00825528 ►Rolling out of the new Chart of Accounts at the Federal Level to facilitate expenditure reporting by PBB (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Only approved budget 123 federal entities are 147 federal entities are Value 100 federal entities disclosed on PBB basis on IFMIS. on IFMIS. Date 30-Dec-2015 28-Jun-2019 06-Apr-2020 07-Apr-2021 MoF Reports: In 2009 EFY Agencies using new COA were 17. As of July/2018 59(fifty nine) Federal public bodies and 8 branch offices use the new chart of accounts for budget administration, cash management, and account reporting and property administration through the implementation of IFMIS system. Comments: In 2011 EFY (9 months) including branches 123 sites are using the new IFMIS and hence new COA. According to MoF, in EFY 2012 up to April 2020, about 147 sites are using the new IFMIS and hence the new COA Strengthening Accountability Institutions IN00825527 ►Percent of contracts awarded using competitive procurement methods in targeted agencies. (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 50.00 94.91 56.90 70.00 Date 30-Dec-2015 28-Jun-2019 06-Apr-2020 07-Apr-2021 MoF Reported: This data was reported by FPPA and PPDS has use 89%, ERA 98% and MoANR 98%. The average becomes 95% for EFY 2009 (FY17) from the three but 57% from the 5 agencies (the agencies are stated in the PAD). The two missed agencies will be requested to submit their reports and the result may be Comments: updated for the ongoing FY. For FY 2010(2018), the results is going to be revised when the annual report for EFY2010 (2018) is submitted by the agencies. In 2011 reported by 3 agencies and their average becomes 94.91. However, since the other target entities are not reporting the data and did not submit the data, the average for the all target agencies will become 56.9%. 4/20/2020 Page 5 of 8 The World Bank Implementation Status & Results Report Ethiopia PFM Project (P150922) There is no reporting in EFY 2012. IN00825529 ►e-GP developed and installed at FPPA and in all E-GP target agencies at Federal level (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 100.00 Date 30-Dec-2015 28-Jun-2019 06-Apr-2020 07-Apr-2021 The e-GP manager and communication consultant are hired and started their preliminary duties. the software is selected, and additional; requirements identified. The developer is recruited and detailed plan is drawn. The e-GP is expected to be piloted in 6 institutions (that is 100% if target) by the project closing. Comments: So currently there are no institutions using e-GP. The final target will be achieved by end of project no intermediate partial implementation. IN00825530 ►IT and Forensic audits completed by OFAG (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 5.00 5.00 15.00 Date 30-Dec-2015 29-Dec-2017 29-Dec-2017 07-Apr-2021 Last year 5 IT and Forensic audits were completed by OFAG last year. However all are using their own resources. The TA firm did not conduct training to the OFAG to improve these audits. Comments: There is no information from OFAG or MOF on the current year data. So last year data is retained IN00825531 ►Issuance of national professional accountancy qualification certificate at least at a Technician level (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 100.00 Date 30-Dec-2015 28-Jun-2019 06-Apr-2020 07-Apr-2021 Not yet due. Progress include:  In 2010 AABE received 171 Applicants who wanted to become authorized Accountant and Auditor. Out of which 167 Applied to become Authorized Accountant and the rest applied to become Authorized Auditor. The board has given firm licenses to 21 Authorized Accountants and 4 Authorized Auditors.  In 2018 AABE has renewed the license of 839 Authorized Accountants and 241 Accounting firms. Meanwhile 136 Authorized Auditors and 15 Auditing firms renewed their license in the same year. Comments:  In 2018 AABE renewed 1034 individual competency certificates and 113 firm level certificates of Authorized Accountants  In 2018 AABE renewed 158 individual competencies Certificates and 6 firm level certificates of Authorized Auditors  In 2019 Board establishment is endorsed by the AABE Board. The detail bylaws and constitution are under consultation. Once established the PAO is expected to issue certifications as agreed with the Bank. Thus there is no issuance of Ethiopian Certified Public Accountant or Technician IN00825532 ►Woredas whose Finance and Budget Standing Committee members are trained to undertake audit follow-up (Percentage, Custom) 4/20/2020 Page 6 of 8 The World Bank Implementation Status & Results Report Ethiopia PFM Project (P150922) Baseline Actual (Previous) Actual (Current) End Target Value 10.00 75.00 75.00 85.00 Date 30-Dec-2015 28-Jun-2019 28-Jun-2019 07-Apr-2021 In 2009 EFY (FY17) 25% of the Woredas Budget and Finance Standing Committees (BFSCs) have been trained and in 2010 the execution is underway to reach 75 %. Comments: In May 2018 and 2019, 75 % of the Woredas BFSCs have been trained and no current information since then. IN00825533 ►Woredas posting simplified budget and execution reports to the citizens (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 90.00 93.65 93.65 95.00 Date 30-Dec-2015 28-Jun-2019 28-Jun-2019 07-Apr-2021 Out of 1023 Woredas, 983 of them posted the simplified budget and execution reports for citizens on bill boards according to the regional BoFEDs report. In 2011 EFY 93.65% woredas are posted simplified Comments: budget execution reports to the citizens. No current info for EFY 2011 Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P150922 IDA-57660 Effective USD 33.00 33.00 0.00 27.19 5.86 82% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P150922 IDA-57660 Effective 26-Feb-2016 17-Mar-2016 18-May-2016 07-Apr-2020 07-Apr-2021 Cumulative Disbursements 4/20/2020 Page 7 of 8 The World Bank Implementation Status & Results Report Ethiopia PFM Project (P150922) Restructuring History Level 2 Approved on 26-Nov-2019 Related Project(s) There are no related projects. 4/20/2020 Page 8 of 8