The World Bank Report No: ISR6250 Implementation Status & Results Afghanistan Public Financial Management Reform II (P120427) Public Disclosure Copy Operation Name: Public Financial Management Reform II (P120427) Project Stage: Implementation Seq.No: 2 Status: ARCHIVED Archive Date: 20-Sep-2011 Country: Afghanistan Approval FY: 2011 Product Line: Recipient Executed Activities Region: SOUTH ASIA Lending Instrument: Technical Assistance Loan Implementing Agency(ies): Key Dates Board Approval Date 23-Jun-2011 Original Closing Date 31-Dec-2014 Planned Mid Term Review Date Last Archived ISR Date 20-Sep-2011 Effectiveness Date 09-Aug-2011 Revised Closing Date 31-Dec-2014 Actual Mid Term Review Date 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? Yes No Component(s) Component Name Component Cost Reform Management 2.95 Procurement Reform 21.47 Audit Reform and Performance 24.70 Financial Management Reform 23.88 Overall Ratings Public Disclosure Copy Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating High Implementation Status Overview Satisfactory Locations Page 1 of 5 The World Bank Report No: ISR6250 No Location data has been entered Results Public Disclosure Copy Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Number of functions carried out by regular Number Value 0.00 0.00 20.00 ministry staff Date 01-Sep-2011 07-Mar-2012 01-Sep-2011 Comments Specific position absorbed in MOF has not changed. Should be reflected in new FY. % of of procurement done by LM using stand- Percentage Value 0.00 20.00 50.00 alone procurment Date 01-Sep-2011 01-Sep-2011 31-Dec-2014 Comments 3 LM are now certified.These 3 MEd, MAIL and MPH represent 20 % of civilian expenditure. PEFA ratings for external audit (P26) improve Number Value 2.00 2.00 3.00 to B (3) Date 01-Sep-2011 07-Mar-2012 31-Dec-2014 Comments Some progression but too early to affect PEFA rating. Donors shift 20% of off-budget ODA to on- Percentage Value 0.00 2.00 20.00 budget Date 01-Sep-2011 01-Sep-2011 31-Dec-2014 Comments Increase in donor contributions to ARTF reflected above; final figures only know after Fiscal year end. Public Disclosure Copy PEFA Ratings for internal audit (P-21) improve Number Value 2.00 2.00 3.00 to B (3) . Date 01-Sep-2011 01-Sep-2011 31-Dec-2014 Comments Good progress in MOF and in 7 line ministries; impact will be calculated after fiscal year end. Intermediate Results Indicators Page 2 of 5 The World Bank Report No: ISR6250 Indicator Name Core Unit of Measure Baseline Current End Target Internal Audit - no of staff trained Number Value 112.00 112.00 360.00 Date 01-Sep-2011 07-Mar-2012 31-Dec-2014 Public Disclosure Copy Comments Workshops given in interim but no full courses. Disaster recovery plan and testing Text Value no plan in place no in place plan in place and tested Date 01-Sep-2011 07-Mar-2012 31-Dec-2014 Comments this delayed due to delay in IT site in Treasury Timeliness and quality of audited statements to Text Value Sept 22 just budget execution No yet due Sept 22 budget execution and Parliament IPSAS compliant Financials Date 01-Sep-2011 07-Mar-2012 31-Dec-2014 Comments Legal Framework for Accounting Profession is Text Value no legal or oversight no progress , not a funded Legal framework agreed and established framework component training underway Date 01-Sep-2011 01-Sep-2011 31-Dec-2014 Comments Freebalance V 7 implemented Text Value not implemented not yet due, not implemented implemented for all sites Date 01-Sep-2011 07-Mar-2012 22-Mar-2013 Comments Treasury has purchased the software. Timeliness, quality of in-year execution reports Text Value 30 days from month end 25 days 14 days Date 01-Sep-2011 07-Mar-2012 31-Dec-2014 Comments Treasury continues to improve timeliness. External audit - no done to ISA Text Value Just WB grant audits grant audits not due and LM All WB grant audits and 9 audits not funded regulatory audits Date 01-Sep-2011 07-Mar-2012 31-Dec-2014 Public Disclosure Copy Comments Internal audit - no of audits evaluated as done Text Value 4 evaluation of current year not 34 to acceptable std yet done Date 01-Sep-2011 01-Sep-2011 31-Dec-2014 Comments LM PFM assessment Text Value 2 assessments underway 6 LM dones 14 assessments completed Date 01-Sep-2011 01-Sep-2011 31-Dec-2014 Comments in line with plan Page 3 of 5 The World Bank Report No: ISR6250 No of HR staff trained Number Value 0.00 77.00 75.00 Date 01-Sep-2011 07-Mar-2012 31-Dec-2014 Comments good progress on HR training. Public Disclosure Copy No of staff completing procurement training Number Value 0.00 680.00 1800.00 and accredited. Date 01-Sep-2011 07-Mar-2012 31-Dec-2014 Comments In line with plan. No of Procurement units of LMs and provincial Number Value 7.00 7.00 61.00 offices restructured Date 01-Sep-2011 01-Sep-2011 31-Dec-2014 Comments Data on Financial Performance (as of 12-Dec-2011) Financial Agreement(s) Key Dates Project Loan No. Status Approval Date Signing Date Effectiveness Date Closing Date P120427 TF-10024 Effective 09-Aug-2011 09-Aug-2011 09-Aug-2011 31-Dec-2014 Disbursements (in Millions) Project Loan No. Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P120427 TF-10024 Effective USD 73.00 73.00 0.00 7.00 53.00 10.00 Disbursement Graph Public Disclosure Copy Page 4 of 5 The World Bank Report No: ISR6250 Key Decisions Regarding Implementation The ARTF MC approved the proposal for $ 73 million but funding of only $ 60 million was assigned with $ 13 million pending further contributions later in this FY. As agreed with MOF, activities on the full range of project components in line with the original plan will get underway and a request of the balance of the funding will be made in the 4th Qrt. Public Disclosure Copy As the current contractor, and first ranked firm in the new selection process, has declined to negotiate a new contract for their services beyond their current contract, the Treasury Advisor contract will be negotiated with the second ranked firm and this is in process. MOF has taken steps to cover any delay in mobilization of the consultants. Expenditures incurred before PFMRII effectiveness of Aug, 2011 relating to on-going direct support exceed PFMR available balance so a retro active financing provision for PFMRII is required for $ 2,000,000 Restructuring History There has been no restructuring to date. Related Projects There are no related projects. Public Disclosure Copy Page 5 of 5