The World Bank Implementation Status & Results Report Uttarakhand Public Financial Management Strengthening Project (P166923) Uttarakhand Public Financial Management Strengthening Project (P166923) SOUTH ASIA | India | IBRD/IDA | Investment Project Financing (IPF) | FY 2019 | Seq No: 13 | Archived on 24-Jan-2025 | ISR03038 Implementing Agencies: Finance Department, Government of Uttarakhand 1. OBJECTIVE 1.1 Development Objective Original Development Objective (Approved as part of Approval package on 07-Mar-2019) The project development objective is to enhance accountability in public finances and increase effectiveness of revenue management systems in Uttarakhand Has the Development Objective been changed since Board Approval of the Project Objective? No 2. COMPONENTS Name Component 1: Strengthening the Public Financial Management Functions:(Cost 20,385,000.00) Component 2: Strengthening Revenue Management Systems:(Cost 7,585,000.00) Component 3: Strengthening PFM in Urban Local Bodies and State-Owned Enterprises:(Cost 4,820,000.00) Component 4: Project Management and Monitoring & Evaluation:(Cost 1,410,000.00) Front end Fees:(Cost 80,000.00) 3. OVERALL RATINGS Name Previous Current Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Moderate Moderate Jan 24, 2025 Page 1 of 19 The World Bank Implementation Status & Results Report Uttarakhand Public Financial Management Strengthening Project (P166923) 4. KEY ISSUES & STATUS 4.1 Implementation Status and Key Decisions The project is in final year of implementation and has reached an overall disbursement of 92 percent. The project has achieved four of the five Project Development Objective (PDO) indicators, with one indicator on Standard Bidding Document (SBDs), linked to Performance Based Condition (PBC), expected to be completed by March 31, 2025. The PDO is rated Satisfactory. The project has met 32 of the 37 PBC targets. Three out of five remaining PBCs are nearly complete and should be disbursed by March 31, 2025. The work on two PBCs, involving SBDs notification and GIS mapping of properties for three cities, are progressing well and expected to be completed by March 31, 2025. The Technical Assistance activities are largely completed. The Implementation Progress rating is retained as ‘Moderately Satisfactory’. 5. SYSTEMATIC OPERATIONS RISK-RATING TOOL Rating at Approval Last Approved Rating Risk Category Approval Package - ISR Seq. 012 - 20 Sep Proposed Rating 07 Mar 2019 2024 Political and Governance Low Low Low Macroeconomic Moderate Moderate Moderate Sector Strategies and Policies Moderate Moderate Moderate Technical Design of Project or Program Substantial Substantial Substantial Institutional Capacity for Implementation and Substantial Substantial Substantial Sustainability Fiduciary Moderate Moderate Moderate Environment and Social Low Low Low Stakeholders Moderate Moderate Moderate Overall Moderate Moderate Moderate Jan 24, 2025 Page 2 of 19 The World Bank Implementation Status & Results Report Uttarakhand Public Financial Management Strengthening Project (P166923) 6. RESULTS 6.1 PDO Indicators by PDO Outcomes Enhanced accountability in public finances Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year (a) Stand- Sep/2018 All targets 11-Aug-2024 All targets 13-Jan-2025 (a) Full state Jun/2025 alone achieved. achieved. accounts applications submitted to for treasury Accountant and budgeting General and manual through IFMIS systems in in paperless Works form, within Complete and timely State departments. ten days from financial reports made (b) Employee close of the available in public domain service records month(b) (Text) PBC are manual Pension and not linked records, Payroll with current and employee payroll service records database and are integrated there are with IFMIS delays in processing of pension data Jan 24, 2025 Page 3 of 19 The World Bank Implementation Status & Results Report Uttarakhand Public Financial Management Strengthening Project (P166923) Improved coverage of 10.00 Mar/2019 60.00 11-Aug-2024 60.00 13-Jan-2025 60.00 Jun/2025 internal audit for high risk auditees (Percentage) (a) Budget Nov/2018 All targets 11-Aug-2024 All targets 13-Jan-2025 (a) Budget Jun/2025 execution except SBDs achieved, reports and reports and approval has except procurement procurement been achieved notification of contract contract SBDs. SBDs awards are awards are not expected to be published.(b) published. (b) notified within SBD notified by Absence of this quarter. Government.(c) Enhanced transparency of Standard GRM key budget and procurement Bidding established(d) information (Text) PBC Documents. (c) Citizen provide Limited citizen inputs to participation budget in budgeting. (d) GRM for procurement not established Improved timeliness in 0.00 Oct/2018 70.00 12-Aug-2024 70.00 13-Jan-2025 70.00 Jun/2025 preparation and publication of AFS of ULBs (Number) PBC Increased effectiveness of revenue management systems Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year Increased property tax 0.00 Mar/2019 35.00 12-Aug-2024 35.00 13-Jan-2025 35.00 Jun/2025 collections of participating Jan 24, 2025 Page 4 of 19 The World Bank Implementation Status & Results Report Uttarakhand Public Financial Management Strengthening Project (P166923) ULBs over baseline (Percentage) PBC 6.2 Intermediate Results Indicators by Components Component 1: Strengthening the Public Financial Management Functions Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year Stand- alone Sep/2018 All targets 12-Aug- All targets 13-Jan-2025 New generation Mar/2024 applications for (including end 2024 (including end IFMIS implemented treasury and target) are target) are New generation FMIS with budgeting and achieved. achieved. enhanced controls and manual systems processes implemented in works (Text) departments. Comments on This indicator tracks the implementation of the new generation software IFMIS and generation achieving targets of complete reports on a timely basis. (a) Sep/2018 All targets 12-Aug- All targets 13-Jan-2025 Pension records, Mar/2024 Computerized (including end 2024 (including end Payroll and payroll system target) are target) are employee service Online HRMIS with with manual achieved. achieved. records are integrated service records interventions(b) integrated with and payroll implemented Service records IFMIS (Text) are maintained manually and not linked to payroll Jan 24, 2025 Page 5 of 19 The World Bank Implementation Status & Results Report Uttarakhand Public Financial Management Strengthening Project (P166923) Comments on This indicator tracks the implementation of HRMIS achieving targets Debt records Sep/2018 Debt Manual 12-Aug- Debt Manual 13-Jan-2025 (a) Debt Jun/2025 are maintained approved by 2024 approved by management manually, Cabinet; Cabinet; software software Medium Term software implemented, implemented. (b) Debt Strategy implemented, training of staff Debt statistical (MTDS) and training of staff completed; and bulletin, MTDS,DSA Public Debt completed; and annual cash and Cash & Statistical annual cash borrowing plan Borrowing Plan Bulletin not borrowing plan implemented. prepared. prepared and implemented. The debt Improved cash and debt Debt The debt statistical bulletin management practices Sustainability statistical published. institutionalised Analysis (DSA) bulletin Medium Term (Text) PBC not conducted published. Debt Strategy Medium Term (MTDS) and Debt Debt Strategy Sustainability (MTDS) and Analysis (DSA) is Debt expected to be Sustainability competed this Analysis (DSA) year. is expected to be competed this year. (a) Weak Sep/2018 Training 12-Aug- Training on 13-Jan-2025 MTEF, Outcome Jun/2024 Improved planning, alignment in conducted on 2024 outcome Budget, and Gender budgeting, and evaluation government outcome budgeting and Budget finalized for framework implemented goals and budgeting and gender budgeting five major (Text) expenditures gender has been departments (b) Limited budgeting. completed. Jan 24, 2025 Page 6 of 19 The World Bank Implementation Status & Results Report Uttarakhand Public Financial Management Strengthening Project (P166923) evaluations Medium Term Development of done post Expenditure MTEF and other budget Framework guidelines is (MTEF) and pending. This other guidelines indicator is yet to be delayed and at developed. This risk. indicator is delayed and is at risk. Comments on This indicator tracks the implementation of new framework for planning, budgeting and achieving targets evaluation. (a) Appraisal Oct/2018 High Value 12-Aug- High Value Capital 13-Jan-2025 a) High Value Mar/2024 guidelines exist Capital Projects 2024 Projects Capital Project but need Dashboard has Dashboard has software/dashboard improvement(b) been developed been developed operationalizedb) Monitoring but not but not Rationalization of system of high operationalized. operationalized. schemes value projects EAP Dashboard EAP Dashboard completedc) needs launched but launched but not Guidelines for Improved appraisal and improvement not being used being used fully appraisal of capital monitoring of high value fully for data for data entry or projects capital projects (Text) entry or review. review. These developedd) EAP The consultancy dashboards will software/dashboard for be integrated operationalized rationalization with PM Gati of schemes has Shakti Portal. progressed well Consultancy for and the final rationalization of report is schemes has been expected by completed and Jan 24, 2025 Page 7 of 19 The World Bank Implementation Status & Results Report Uttarakhand Public Financial Management Strengthening Project (P166923) September final report which will be submitted. The used in the next recommendations budget cycle. will be used in the Project budget cycle of appraisal FY25-26. Project guidelines has appraisal not been guidelines has not developed. been developed. Comments on This indicator tracks the development and operationalization of appraisal guidelines and project achieving targets monitoring dashboard (a) Audit Sep/2018 Key audit 12-Aug- The key audit 13-Jan-2025 Manuals Mar/2024 processes are Manuals 2024 manuals have operationalized, manual (b) High implemented. been staff trained and risk auditees Training implemented, audits completed coverage is provided and with training using these audit around 10%(c) audits provided and manuals Audit Directorate Thematic audit completed. One audits strengthened (Text) not conducted thematic audit successfully completed. QA completed. One has not been thematic audit conducted. has also been conducted. Comments on This indicator tracks the development and implementation of modernized audit manuals and achieving targets training of staff No automated OAMS is OAMS is 60% of ALL Internal Online Audit audit implemented implemented and Audit reports have Management System management and audit audit reports are been issued Implemented (Text) system reports are issued within 2 through OAMS, Jan 24, 2025 Page 8 of 19 The World Bank Implementation Status & Results Report Uttarakhand Public Financial Management Strengthening Project (P166923) presently used issued within 2 months through within two months by the months through the system. from completion of department the system. audit Comments on This indicator tracks the implementation of the OAMS achieving targets (a) Financial Oct/2018 Financial Attest 12-Aug- Financial Attest 13-Jan-2025 Financial Attest Jun/2024 Attest Audit manual 2024 Audits of ULBs Audits for ULBs and (Certification) implemented. and RLBs are RLBs are done on audit started in 90% Audits of ongoing regular basis and FY 2017/18 and ULBs and 40% backlog reduced. Improved coverage of baseline is audits of RLBs Financial Attest Audit of presently not who have Local Bodies (Urban and available (b) submitted Rural) (Text) PBC Financial Attest accounts have Audit manual been presently not completed. available Comments on This indicator measures the audit completion rate for available AFS of local bodies. achieving targets 900 Sep/2018 4,901 12-Aug- 4,901 13-Jan-2025 Total 3000 staff Mar/2024 2024 trained in the Number of staff trained in targeted areas targeted PFM areas Comments on This indicator measures the capacity building of GoUK staff, including female staff, in targeted (Text) achieving targets PFM areas 12 percent of 21 percent 21 percent 25 percent of total Number of Female total trainees trainees staff trained (Text) Comments on This indicator measures the capacity building of GoUk female staff, in targeted PFM areas achieving targets Jan 24, 2025 Page 9 of 19 The World Bank Implementation Status & Results Report Uttarakhand Public Financial Management Strengthening Project (P166923) 0.00 Nov/2018 100.00 12-Aug- 100.00 13-Jan-2025 75.00 Mar/2024 Grievances responded by 2024 project level GRM Comments on This indicator measures the Grievances received and responded by project. (Percentage) achieving targets Component 2: Strengthening Revenue Management Systems Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year 0.00 Sep/2018 0.00 12-Aug- 0.00 13-Jan-2025 14.00 Mar/2024 GIS based Property tax 2024 system implemented in Comments on GIS has been completed in 3 cities but yet to be fully implemented. This indicator measures the participating ULBs achieving targets number of participating ULBs who have implemented GIS for property tax. This indicator will be (cumulative) (Number) measured cumulatively. House hold survey 0.00 6.00 6.00 14.00 completed Comments on This indicator measures the completion of house hold surveys for ULBs. This indicator will be (cumulative) achieving targets measured on a cumulative basis. (Number) ULBs have digitized 0.00 14.00 14.00 14.00 their manual Comments on This indicator measures the digitization of existing property tax registers of ULB. This indicator property tax registers achieving targets will be measured on a cumulative basis. (Number) Dedicated GIS Sep/2018 GIS cell formed 12-Aug- The GIS cell has 13-Jan-2025 (a) GIS training Mar/2024 cell not formed and training 2024 been established provided to staff of and GIS provided. and initial training 14 ULBs(b) GIS cell trainings not However has been fully operational Capacity building on GIS in provided capacity is weak provided. and manages GIS UDD (Text) and staff However, the for ULBs training needs current capacity to be done remains again. Alternate insufficient, Jan 24, 2025 Page 10 of 19 The World Bank Implementation Status & Results Report Uttarakhand Public Financial Management Strengthening Project (P166923) policy note was necessitating not prepared additional staff training. Additionally, an alternate policy note has yet to be prepared. Comments on This indicator measures number of ULBs trained in GIS and operationalization of GIS cell achieving targets Strategic Oct/2018 No progress on 12-Aug- This activity is 13-Jan-2025 Strategic Business Mar/2024 Business plan this indicator 2024 dropped by the Plan approved not developed achieved. client and hence GMVN Business Plan no progress developed (Text) made. Comments on This indicator tracks the development of Strategic Plan for the two selected verticals in GMVN achieving targets and subsequent implementation of the computerized revenue systems Component 3: Strengthening PFM in Urban Local Bodies and State-Owned Enterprises Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year Manual Sep/2018 UMAM 12-Aug- UMAM is 13-Jan-2025 Staff of all ULBs Jun/2024 accounting implemented 2024 implemented, have been trained process and all staff and all staff are in revised UMAM followed in the trained. trained. ULBs institutionally state. Staff not strengthened in Financial trained on Management (Text) accrual based double entry accounting system. Jan 24, 2025 Page 11 of 19 The World Bank Implementation Status & Results Report Uttarakhand Public Financial Management Strengthening Project (P166923) Comments on This indicator measures number of ULBs trained in accounting and software achieving targets 0.00 Sep/2018 70 12-Aug- 70 13-Jan-2025 70.00 Jun/2024 Double Entry Accrual based 2024 computerised accounting Comments on This indicator measures the number of ULBs who have transitioned to Double Entry Accrual system implemented in achieving targets based computerized accounting system. This includes generating final accounts in prescribed ULBs (Number) format from the software. ULBs opening 0.00 93 93 70.00 balance sheet Comments on This indicator measures the number of ULBs who have created opening balance sheet prepared (Number) achieving targets Accounting Dec/2019 Consultant 12-Aug- A consultant was 13-Jan-2025 Double Entry Jun/2024 manual is appointed and 2024 appointed and Accrual based outdated and work started. the work has computerized accounting is Accounting been completed. accounting system done manually manual An accounting implemented across the developed and manual was Double Entry Accrual based company. training developed and computerized accounting completed. training has been system implemented in DEAS has completed. GMVN (Text) started. Double Entry Accounting System has commenced. Comments on This indicator measures the accounting reforms and implementation of Double Entry Accrual achieving targets based computerized accounting system in GMVN 6.3 Performance Based Conditions (PBC) Jan 24, 2025 Page 12 of 19 The World Bank Implementation Status & Results Report Uttarakhand Public Financial Management Strengthening Project (P166923) Actual (Previous) Actual (Current) PBC Name Baseline Closing Period Value Date Value Date All targets achieved: IFMIS All targets achieved: (a) Stand- alone implemented. IFMIS implemented. applications for Accounts submitted Accounts submitted treasury and online to online to Accountant budgeting and Accountant General General within 10 manual systems in 1:Complete and within 10 days. days. Payroll module FD has provided Works departments. timely State Payroll module in in place, with to the public (b) Employee service financial reports Value place, with employee and online access to records are manual made available in employee and 13-Jan-2025 pension data 13-Jan-2025 budget execution and not linked with public domain pension data digitized and reports. current payroll (Text) digitized and salaries/pensions database and there Achieved salaries/pensions paid online. Public are delays in paid online. Public access to budget processing of pension access to budget execution reports data execution reports provided. provided. Allocated 0.00 0.00 500,000.00 Amount PBC allocation 5,600,000.00 a) Audit processes The Cabinet has The Cabinet has 2:Strengthened are manual and notified key audit notified key audit coverage and reports issued with manuals. Audit manuals. Audit Two Thematic improved timeliness Value time lag of 7 months coverage exceeds 13-Jan-2025 coverage exceeds 13-Jan-2025 audits have been of Internal Audit for (b) Audit coverage 60%. One thematic 60%. One thematic conducted high risk auditees was 10 % of total audit has been audit has been and areas (Text) Category A auditees completed, and completed, and Jan 24, 2025 Page 13 of 19 The World Bank Implementation Status & Results Report Uttarakhand Public Financial Management Strengthening Project (P166923) Partially achieved (high risk auditees) another one is another one is during 2016/17 (c) nearing completion. nearing completion. Thematic audits are not conducted Allocated 0.00 0.00 500,000.00 Amount PBC allocation 3,000,000.00 Citizen participates in the annual Citizen participates in budget preparation the annual budget (a) Budget execution process ensured. preparation process reports and Grievance ensured. Grievance procurement Redressal Redressal contract awards are Mechanism (GRM) Mechanism (GRM) 3:Enhanced not published. (b) established. Key established. Key SBDs transparency of key Absence of Standard SBDs submitted to submitted to the Value budget and Bidding Documents. the Government of Government of (c) Limited citizen Uttarakhand 13-Jan-2025 Uttarakhand (GoUK) 13-Jan-2025 procurement information (Text) participation in (GoUK) for for approval. MTFP Partially achieved budgeting. (d) GRM approval. MTFP aligned with State for procurement not aligned with State FRBM and Citizen established FRBM and Citizen Budget disclosed. Budget disclosed. Contract awards Contract awards published publicly. published publicly. Allocated 0.00 0.00 Amount PBC allocation 1,850,000.00 Jan 24, 2025 Page 14 of 19 The World Bank Implementation Status & Results Report Uttarakhand Public Financial Management Strengthening Project (P166923) (a) 50 ULBs have prepared their AFS for FY 2022- 23 according to UMAM within six (a) Accounts of ULBs (6) months from 4:Improved are maintained close of the FY (b) timeliness in manually. (b) Delays Value 70 70 Accounting preparation and in preparing AFS 13-Jan-2025 13-Jan-2025 Software publication of AFS range between 12 to implemented in of ULBs (Number) 24 months 70 ULBs and Achieved accounts for FY 2023-24 has been entered in the software. Allocated 0.00 0.00 1,700,000.00 Amount PBC allocation 3,200,000.00 (a) Property tax assessment, levy and 5:Increased Participating ULBs collection is largely property tax have increased manual (b) Aggregate collections of Value 35.00 35.00 their property tax property tax in 14 participating ULBs 13-Jan-2025 13-Jan-2025 by aggregate 35% participating ULBs for over baseline over baseline FY 2017/18 is INR. (Percentage) 400 million Partially achieved Allocated 0.00 0.00 700,000.00 Amount PBC allocation 3,400,000.00 Jan 24, 2025 Page 15 of 19 The World Bank Implementation Status & Results Report Uttarakhand Public Financial Management Strengthening Project (P166923) (a) 90% FAAR (a) Financial Attest The Financial Attest The Financial Attest issued for ULBs (Certification) audit Audit manual has Audit manual has that have 6:Improved started in FY 2017/18 been approved by been approved by submitted AFS for coverage of and baseline is GoUK. Audits are GoUK. Audits are audit.(b) 40% Financial Attest Value presently not 90% complete for 90% complete for FAAR issued for Audit of Local available (b) Financial 13-Jan-2025 13-Jan-2025 ULBs and 40% for ULBs and 40% for Rural Local Bodies Bodies (Urban and Attest Audit manual RLBs, with reports RLBs, with reports that have Rural) (Text) presently not issued. issued. submitted AFS for Achieved available audit. Allocated 0.00 0.00 1,600,000.00 Amount PBC allocation 3,500,000.00 The Debt Manual The Debt Manual has has been approved been approved by by Cabinet, and the Cabinet, and the software has been software has been Debt records are implemented with implemented with maintained manually, 7:Improved cash staff training staff training Medium Term Debt and debt completed. An completed. An Strategy (MTDS) and management annual cash annual cash DSA has been Public Debt Statistical practices Value borrowing plan is 13-Jan-2025 borrowing plan is 13-Jan-2025 conducted by the Bulletin not prepared institutionalised now in place. The now in place. The FD and Debt (Text) debt statistical debt statistical Sustainability Partially achieved bulletin has been bulletin has been Analysis (DSA) not published. The published. The conducted Medium Term Debt Medium Term Debt Strategy (MTDS) Strategy (MTDS) and and Debt Debt Sustainability Sustainability Analysis (DSA) are Jan 24, 2025 Page 16 of 19 The World Bank Implementation Status & Results Report Uttarakhand Public Financial Management Strengthening Project (P166923) Analysis (DSA) are expected to be expected to be completed this year. completed this year. Allocated 0.00 0.00 225,000.00 Amount PBC allocation 2,450,000.00 Jan 24, 2025 Page 17 of 19 The World Bank Implementation Status & Results Report Uttarakhand Public Financial Management Strengthening Project (P166923) 7. DATA ON FINANCIAL PERFORMANCE 7.1 Cumulative Disbursements 7.2 Disbursements (by loan) Loan/Credit/TF Status Original Revised Cancelled Disbursed Undisbursed % Disbursed IBRD-89280 Effective 31.58 27.42 4.16 25.50 1.92 93.01% 7.3 Key Dates (by loan) Loan/Credit/TF Status Approval Signing Effectiveness Orig. Closing Rev. Closing IBRD-89280 Effective 07-Mar-2019 25-Jun-2019 20-Aug-2019 30-Jun-2024 30-Jun-2025 8. KEY DATES Jan 24, 2025 Page 18 of 19 The World Bank Implementation Status & Results Report Uttarakhand Public Financial Management Strengthening Project (P166923) Key Events Planned Actual Approval 07-Mar-2019 07-Mar-2019 Effectiveness 20-Aug-2019 20-Aug-2019 Mid-Term Review No. 01 30-Sep-2022 19-Sep-2022 Operation Closing/Cancellation 30-Jun-2025 9. RESTRUCTURING HISTORY Restructuring Level 2 Approved on 17-Oct-2024 Restructuring Level 2 Approved on 20-Jan-2023 Restructuring Level 2 Approved on 28-Aug-2024 10. ASSOCIATED OPERATION(S) There are no associated operations Jan 24, 2025 Page 19 of 19