Somalia: Recurrent Cost and Reform Financing Project Phase III (P173731) Implementation Support Mission February 23 –28, 2025 Aide Memoire I. INTRODUCTION 1. A World Bank team1 held an Implementation Support Mission/Project Management Team (PMT) meeting for the Somalia Recurrent Cost and Reform Financing Project Phase III (RCRF III)2 from February 23 to 28, 2025. The main objectives of the mission were to (a) review the progress on agreed actions from the previous implementation support mission; (b) review the progress of Performance-Based Conditions (PBCs); (c) discuss priorities and agree on the Annual Work Plan for CY2025. 2. The World Bank mission team expresses its gratitude to the representatives of the Ministries of Finance, Education, and Health from the Federal Government of Somalia (FGS) and from each Federal Member State (FMS) for the collaboration they extended to the team. This Aide Memoire (AM), produced collaboratively by relevant government and World Bank teams, was discussed at the wrap- up meeting held with Dr. Saleiman Umar, Director General of FGS Ministry of Finance (MoF) and Mr. Abdulkadir Suleiman, RCRF III Project Coordinator on February 27, 2025. Annex 1 provides the list of participants. II. PROJECT DATA AND RATINGS Table 1. Key Project Data, US$ millions Project Data RCRF III RCRF III AF1 RCRF III AF22 Total Original project amount 68.00 77.00 65.00 210.00 Total disbursement 67.78 44.64 6.66 129.08 (99.7%) (58%) (10%) (61%) Disbursement in FY2025 1.74 9.8 6.66 18.2 Undisbursed balance 0.002 16.8 57.32 79.01 Closing date December 31, December 31, December 31, 2026 2026 2026 Note: The discrepancies in the undisbursed balance are caused by the differences in the XDR/USD exchange rate 3. The Project Development Objective (PDO) is to support the FGS and eligible FMS to strengthen resource management systems, the inter-governmental fiscal framework, and service delivery systems in health and education. Table 2 provides the project ratings. The PDO rating was upgraded to Satisfactory to reflect good progress on PDO indicators, namely improvements in the timeliness of FGS civil salary payments, increase in the number of Female Health Workers (FHWs), and school coverage by the school supervision exercise. More details on the PDO progress and the status of intermediate indicators are provided in Section III and Annex 2. Table 2. Project Ratings Dimensions Previous Current Project Development Objective (PDO) Moderately Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Component 1: Recurrent cost finance to reform Satisfactory Satisfactory resource management systems Component 2: Strengthening inter-governmental Satisfactory Satisfactory fiscal relations 1 The World Bank team was led by Alma Nurshaikhova (Senior Public Sector Specialist and Task Team Leader) and Mohamud Yasin Jama (Senior Governance Specialist). The full list of World Bank staff attending the mission is in Annex 1. 2 The Second Additional Financing for RCRF III (RCRF III AF2) was approved on May 21, 2024, and declared effective on July 12, 2024. Dimensions Previous Current Component 3: Transfers for core government Satisfactory Satisfactory functions and foundational education and health service delivery mechanisms in eligible FMSs Component 4: Citizen engagement and feedback Satisfactory Satisfactory Component 5: Project management Satisfactory Satisfactory Procurement Satisfactory Satisfactory Financial management (FM) Moderately Satisfactory Moderately Satisfactory Environmental and social (E&S) impacts Moderately Satisfactory Moderately Satisfactory III. IMPLEMENTATION PROGRESS AND KEY FINDINGS 4. Overall implementation progress is rated Satisfactory. The following section describes the progress achieved during the period under review, identifies the critical issues, and highlights the most important actions required. Annex 3 presents tables with action points, responsibilities, and deadlines. Component 1: Recurrent cost finance to reform resource management systems 5. Progress on Component 1 remains satisfactory. In 2024, the government financed 86.9% of FGS civil servants’ salaries, up from 85% in 2023, with the RCRF program contributing $4.99 million to a monitored payroll of $38.16 million. The government is on track to meet its 100% baseline financing of FGS civil service target by 2026. Salaries were paid on time for 83% of the year (10 out of 12 months) consistent with the 2024 target. The delayed payments in two months occurred in the RCRF-funded DA-A component due to liquidity shortages and fund code changes. To prevent future delays, the RCRF PIU team will prioritize timely processing of Withdrawal Applications (WAs) and proactive planning. 6. The Office of the Accountant General (AGO) is addressing internal audit recommendations on payroll processes, but additional evidence is needed to comply with Performance Based Condition (PBC) 2.4. Initially, AGO claimed having resolved six of nine audit recommendations. However, the Independent Verification Agent (IVA) report indicates at least five remain unaddressed due to insufficient evidence. The AGO team will provide additional evidence to finalize PBC 2.4, while the Somalia Enhancing Public Resources Management Project (SERP, P177298) will provide support to the implementation of the pending recommendations, which include improving human resources (HR) policies, developing Human Resources Management Information System (HRMIS), and enhancing civil service recruitment. 7. Good progress has been made on PBCs, with 26 of 60 benchmarks met, two missed3, and three partially achieved as of February 28, 2025. The FGS is urged to accelerate progress on domestic revenue, payroll management, wage bill transparency, and biometric attendance monitoring. After several delays, the IVA firm’s contracting is at the signing stage, with an interim individual consultant supporting verification. Going forward, clear role delineation between the IVA firm and the consultant will be essential for verifying complex PBCs. Component 2: Strengthening inter-governmental fiscal relations. 8. Progress on Component 2 remains satisfactory, with key achievements including implementing the FY2024 grant formula, advancing local governance component, and improved self-assessments reflected in FY2024 performance scores. Challenges include delays in adopting a policy brief on agreements for functional and revenue assignment (PBC 3.5) due to political tensions, the need for close monitoring of FY2025 grant allocations implementation and ensuring district governments comply with service delivery agreements and fiscal reporting. To address these, the IGFF-TC will revise grant formula performance parameters, include implementation of the grant funds disbursement using the formula in the Finance Ministers Fiscal Forum (FMFF) upcoming agenda, seek FMFF endorsement of the policy brief, and provide technical support for the pilot transfer to the districts through FMS MOF. 9. Adherence to the Participation Eligibility Criteria (PEC) has improved, although challenges 3 PBC 3.3 FGS’s 2024FY budget provides for appropriations for FGS’s fiscal transfers to FMS/BRA as per an inter - governmentally agreed formula; and PBC4.2 FGS’s fiscal transfers execution rate for the previous FY to FMS/BRA is equal to, or greater than, the outturn rate for FGS’s domestic revenues. exist. FGS and all FMSs, except Puntland, have published their Annual Appropriation Acts and delivered their monthly fiscal data with the FGS on time as per the disaggregated requirement (six digit COA code), allowing for the consolidation of fiscal reports for CY2024. The mission noted a need to improve the timely publishing of quarterly fiscal data disaggregated as per the requirement (Six-digit CoA code), and that the published fiscal data reconciles to the appropriation act. Beyond the fiscal transparency criteria, Galmudug State of Somalia (GSS), Hirshabelle State of Somalia (HSS), and Southwest State of Somalia (SWSS) do not adhere to the criterion of minimum appropriations for their ministries of health, intended to enable capability for management in these ministries. The mission agreed to update the PEC criteria, including the deletion of the female participation in the teacher cadre requirement, given that RCRF discontinued support to the teachers’ salaries. The revised language is included in Annex 5 and should be reflected in the Project Operations Manual by March 31, 2025. 10. The mission discussed the phased strategy for expanding the Eligible Expenditure Program (EEP) for the FMS to enable performance-based financing of FMS civil service salaries starting from January 2025. FMS except Puntland submitted information on temporary workers’ and legislatures’ wage bill processed through relevant FMS Financial Management Information Systems (FMIS) payroll modules on February 24, 2025. Puntland is yet to provide information on its complete civil service wage bill. After the monitoring agent analyzes the information, an agreement will be reached on the scope of the EEP and the next steps, including the need for any additional information. 11. The FMS must take proactive steps to meet PBC 9.5 for 2026 civil service salary financing. This will require the timely publication of key budget documents in accordance with the Open Budget Survey (OBS) framework, including the Draft Appropriations Act, Enacted Budget, and at least one additional OBS-defined document. In addition, FMS must publish quarterly tax performance and expenditure reports within 45 days of quarter-end during 2024 with agreed disaggregation/breakdown of expenditure, along with other fiscal and PFM reports. This transparency is crucial for securing funds for FMS civil service salaries in 2026. Given the risk of non-compliance, efforts will focus on meeting publication and reporting targets. The full list of documents subject to the publication is provided in Annex 6. Component 3: Transfers for core government functions and foundational education and health service delivery mechanisms in eligible FMSs. 12. Progress against Component 3 remains satisfactory. The mission noted the declining scale of input- based financing of FMS civil service salaries under Component 3.1 starting January 2025 and the increasing share of performance-based financing approved through the AF2. At the time of the mission, only Jubbaland submitted the evidence of meeting PBC 9.4, which was verified by the IVA. Other FMS except Puntland submitted the evidence for the next cycle of verification, which is expected by end-April 2025. Provided that the Bank team confirms the achievement of PBC9.4 for four FMS, the funds will be made available in time for the FMS to finance the performance-based share of the civil service salaries. To fill the gaps, it was agreed that in 2025, FMSs would finance non-teacher education staff from PBC8.3 and civil service salaries from PBCs 9.2 and 9.3, which were disbursed in December 2024. 13. RCRF funding for education service delivery is scaling down in line with the National Teacher Initiative (NTI) and the Somalia Education for Human Capital Development Project. Concerns were raised over the achievement of PBC8.6 requiring the absorption of RCRF teachers into the NTI cadre. Of about 1,623 RCRF-financed teachers, only 89 teachers were successfully selected and contracted as NTI teachers during the 2024 selection round, and an additional 267 during the 2023 selection round. To understand the reasons for a low intake a phone survey of RCRF-financed teachers and an administrative assessment of applications and exam results was conducted. 1,122 teachers were reached through the phone survey, of which 844 reported that they applied, and 319 teachers passed the qualification criteria and were admitted to the exam. Only 174 selected teachers managed to pass the exam, while 150 teachers passed the interview and signed the contract. Survey results highlighted key challenges faced by teachers, including lack of understanding of SMS content, limited awareness of the NTI application process, and missed notifications. Specifically, 321 teachers did not apply due to unclear messaging, while 78 teachers missed the end-of-contract SMS, and 119 teachers missed the NTI application SMS. Additionally, 214 teachers expressed interest in applying again if given another opportunity. The administrative review identified systemic issues such as fraudulent higher education certificates, discrepancies in teacher qualifications, and incomplete or inconsistent documentation (e.g., mismatched names on certificates and forms). These challenges complicated verification and selection processes. Puntland teachers have fully transitioned to government payroll. The FGS Ministry of Education, Culture, and Higher Education (MOECHE) raised concerns over the PBC 8.6 non-disbursement decision, while the World Bank team suggested a number of measures, including supporting RCRF-teachers in the 2025 NTI intake process. The full list of agreed actions is listed in Annex 3. 14. The Marwo Caafimaad Program has scaled up to 1,484 (with 200 under training) Female Health Workers (FHWs) and supervisors, with the training and deployment of new FHWs completed in three states and two more (SWSS, GSS) set to finish by May 2025. The selection of additional 700 FHWs is expected in 2025, which will require timely achievement of PBC 7.5 to finance FHW training expected by March 8, 2025.4 Medical supply delays in Puntland State of Somalia (PSS) and HSS are being addressed through new supply agreements and stock management. A no-cost extension of the Health Technical Partner (HTP) contract until February 2026 is under consideration to sustain supplies. Performance data shows 30% of FHWs work at least 75% of the time, while 36% work 50% or less based on the digital data submission. Measures to improve performance include stricter management actions, enhanced supervision, and strength- ened digital monitoring. Non-functional smart phone issues have been resolved with repairs and 400 replace- ments. Transition to DHIS2 for data management is delayed, with the contracting expected by May 2025. The Human Resources for Health (HRH) Policy is set for endorsement in early March, and the updated national Community Health Strategy is expected by April 2025 paving the way for the achievement of PBC 7.5. A FHW program evaluation is planned, with procurement expected to complete by March 31. Discus- sions emphasized the need for sustainable financing beyond project closure, including government and donor support. Component 4: Citizen engagement and feedback 15. The FGS has consolidated its improvements in budget transparency, maintaining its OBS score increase from 20 to 37 points, while also making progress on its previously zero participation score. To further enhance budget reporting, the FGS has developed Terms of Reference (ToR) and begun procuring a firm to improve the content and structure of budget documents, ensuring alignment with OBS requirements. This also includes a second phase of training for media, parliament, and government staff. Additionally, the FGS conducted public budget consultations with registered civil society organizations, resulting in a consultation report that outlines discussions, feedback received, and how input was incorporated. The MoF has also continued its awareness efforts, with a think tank publishing three of four planned budget policy briefs. 16. The Talo Wadaag citizen engagement center has contacted 28,207 citizens, with 13,763 engaged since January 2024. The grievance resolution rate stands at 96.88%, with 61% of beneficiaries receiving responses through the ICT platform. FMSs have used citizen feedback to adjust policies, improve teacher and FHW salary payments, and optimize service provision for marginalized groups. The program has now entered Phase III (February 2025), focusing on campaign expansion, IT optimization, and transitioning the platform to full government ownership. New mass media activities will include public town halls with civil society, government officials, and citizens, as well as social media promotions, animation videos, and documentaries covering health, education, finance, and revenue. Component 5: Project management 17. The mission found the project's disbursement level to be moderately satisfactory, with 63.55% disbursed as of March 6, 2025, including funds from additional financing. Financial reporting is up to date, but a review of the latest interim unaudited financial report (IFR) revealed that a reimbursement of $2.9 million was not reflected in the designated account. The project will reconcile and resubmit financial statements by March 15, 2025. Financial management issues flagged include ineffective spending on translation services, payment delays, missing documentation for Nairobi accommodation costs, and the lack of an internal audit. The government team requested a reassessment of the reported ineffective spending, and the Bank team agreed to review the findings. The FY2023 audit highlighted the absence of an internal audit and an unreported amount of $40,613.56, which must be reconciled. The project is advised to coordinate with the Internal Audit Unit to ensure an audit in FY2025. Preparations for the FY2024 audit 4 As of March 7, FGS Minister of Finance put a freeze on the recruitment of new FHWs due to sustainability concerns. are underway, with submission expected by June 30, 2025. Despite these issues, project accounting capacity is deemed adequate, and the financial management rating remains Moderately Satisfactory, with a substantial FM risk. The disbursement status is detailed in the annexed table 7. 18. The project continues to perform well in procurement, maintaining a satisfactory rating with 13 contracts signed totaling $1.59 million. This amount is 19.4% below budget, driven by lower-than- expected market prices for Third Party Monitoring and Mass Media Campaigns. While price fluctuations in small, volatile markets can be challenging to predict, this presents an opportunity to enhance budget alignment with market conditions and optimize resource allocation. Procurement activities have been timely, ensuring no delays in contract renewals, amendments, and extensions. Key ongoing procurements include consultancy for Budget Transparency, an Independent Review of the Female Health Worker Program, and DHIS2 Development for the Ministry of Health, while upcoming procurements focus on smartphones with solar systems and expanding community engagement as well as the review of the HTP contract. Challenges remain, including delays in procurement execution, consultant selection, contract signing, MOF legal reviews, and gaps in evaluation committee expertise. To address these, the PIU will strengthen follow-up mechanisms, enforce strict timelines for procurement panels and legal reviews, and ensure expert participation in selection committees. The mission emphasized the need to expedite procurement processes, and the World Bank will conduct a post-review of previously unassessed activities, requiring all relevant documents to be uploaded in STEP. Additionally, PIU staff attended contract management training in Nairobi (October 2024) to enhance procurement efficiency. 19. The E&S Performance Rating remains Moderately Satisfactory (MS). The PIU has addressed most previously agreed actions, including tracking the transition of RCRF-financed teachers to FGS and ensuring their access to the project Grievance Mechanism (GM), while ongoing efforts include finalizing the GBV service provider mapping and security training for project staff and contractors. Progress has been made in implementing the Corrective Action Plan following the Kismayo incident reported in April 2024, with continued awareness activities on project operations, community engagement, GM, and GBV protocols. The Bank advised finalizing the awareness manual for Female Health Workers (FHWs) to close the incident. Grievance management is on track, with 65 out of 67 cases closed, including the resolution of protests in BRA related to RCRF teachers’ transition to the FGS National Teacher Initiative. The recruitment of a Social Specialist in Puntland remains pending, with onboarding expected in May 2025, but the Bank urged an expedited process as E&S activities in Puntland are falling behind. Emerging issues include FHW salary increment requests and the limited inclusion of older persons, adolescents, and persons with disabilities (PWDs) into the package of FHW services; the Bank advised managing salary expectations, mapping disadvantaged groups per the Stakeholder Engagement Plan (SEP), and reporting their access to project benefits. The Bank also reiterated the requirement to submit E&S quarterly reports on time and assess progress on medical waste disposal, with Annex 3 outlining actions for immediate attention. Additionally, the PIU provided an overview of Project Security Management to the broader team, emphasizing its integration into operations and preparing a security training to enhance vigilance and risk preparedness. IV. AREAS OF CONCERN AND NEXT STEPS 20. Table 3 lists key areas of concern and steps agreed during the wrap-up meeting. The detailed list of actions agreed during the mission is summarized in Annex 3. Table 3. Areas of Concern and Next Steps No Steps to Be Taken Action by 1. Performance benchmarks: PIU and FGS MoF • Sustain the good progress made on PBCs. • Update detailed action plan with PBCs up till December 2025 • Initiate verification of FMS PBCs upon their achievements avoiding delays in the disbursement 2. Inter-governmental coordination: PIU, Inter- governmental • FMS Ministries of Interior to coordinate with Health, Education, and Coordination Secretariat Environment ministries to support eligible districts during service implementation. • IGFF-TC to review the grant formula and update performance indicators for better intergovernmental transfers. • Finalize and present the Policy Brief on Agreements for Functional and Revenue Assignment at the next IGFF-TC meeting for submission to FMFF. 3. Service delivery: Ministry of Education, • Address teacher transition challenges by improving communication on NTI Culture, and Higher recruitment, resolving compliance issues, and ensuring timely submission Education (MoECHE), of pending teacher payroll (HSS, JSS) Ministry of Health and • Complete FHW recruitment in SWSS and GSS by May 2025, improve Social Services (MoHSS) performance management through enhanced supervision and digital monitoring, and secure sustainable financing for the program beyond project closure. • Medical Supply & Procurement Risks: Finalize supply agreements for PSS and HSS, develop a 2026 procurement plan, and engage donors on sustainable funding solutions. 4. Citizen engagement: PIU, FGS MoF • Finalize procurement of a firm to enhance budget document content and structure, ensuring alignment with OBS requirements and strengthening budget transparency • Expand the Talo Wadaag citizen engagement program in Phase III, optimizing IT systems, increasing public outreach through mass media, and transitioning the platform to full government ownership 6. E&S risk management: PIU, PCU, FGS MoF • Conclude the GBV service mapping exercise in Somalia and hold a virtual session with other projects across the portfolio to disseminate the findings of the exercise with the Bank’s support. -April 30, 2025 • Conclude the PIU-led security training for project staff and contractors. -April 30, 2025 • Prepare the FHWs awareness manual-April 15, 2025 • Onboard the Social specialist Puntland-May 15, 2025 • Map disadvantaged groups in line with the SEP and report on the nature of benefits they are accessing-Starting March 2025 quarter and continuous • Promptly submit the E&S quarterly reports-Starting March 2025 quarter and continuous • Assess the disposal of medical waste-Immediate Annex 1: List of Officials Met and Composition of World Bank Team List of the Participants No. Name Position Entity Ministry of Finance FGS 1 Abdulkadir Suleiman RCRF Project Coordinator Ministry of Finance - FGS 2 Abubakar Mohamud SERP Coordinator Ministry of Finance - FGS 3 Zainab Dhuhulow Finance Accountant Ministry of Finance - FGS 4 Ali Adan Hassan RCRF Project Manager Ministry of Finance - FGS 5 Mustaf Iidow Performance Reporting Ministry of Finance - FGS 6 Hamida Dahir Communication Specialist Ministry of Finance - FGS 7 Idil Liban Senior Project Admin Ministry of Finance - FGS 8 Ahmed Mohamed Hassan Social Safeguard Specialist Ministry of Finance - FGS 9 Liban Abdi Mohamud Finance Accountant Ministry of Finance - FGS 10 Abdullahi Abdirahman Ahmed Finance Accountant Ministry of Finance - FGS 11 Abbas Ismail Addow PFM Advisor Ministry of Finance - FGS 12 Abdirizak Mohamud Hussein EAFS Consultant Ministry of Finance - FGS 13 Abdirahman Bulle Budget Department Ministry of Finance - FGS 14 Salad Araye Addawe Procurement Specialist Ministry of Finance - FGS 15 Abdiaziz Abdullahi Handulle Monitoring & Evaluation Specialist Ministry of Finance - FGS 16 Abdihakim Bishar Security Specialist Ministry of Finance - FGS 17 Hodan Abdullahi Senior Social Safeguard Specialist Ministry of Finance - FGS 18 Simeon Korir Procurement Consultant Ministry of Finance - FGS 19 Ahmed Muktar Ali Intergovernmental Fiscal Federalism Secretariat Ministry of Finance - FGS 20 Abdisamad Abdullahi Mohamed Intergovernmental Fiscal Federalism Secretariat Ministry of Finance - FGS 21 Abdiwahab Omar Jama Intergovernmental Fiscal Federalism Secretariat Ministry of Finance - FGS 22 Abdi Hamud Ahmed Federalism Advisor Ministry of Finance - FGS 23 Ahmed Haji Abdalla Fiscal Federalism Expert Ministry of Finance - FGS 24 Mohamed Ibrahim Office of DG Ministry of Finance - FGS Ministry of Health 25. Muqtar Abdi Shube Director of Public Health - FMOH Ministry of Health- FGS 26 Abdisalam Abdullahi Mohamoud Community Health Program Coordinator Ministry of Health Coordinator-FGS 27 Fatuma Nur Addawe Finance Specialist Ministry of Health- FGS 28 Abdinasir Mohamed Gedi Data Analysist Ministry of Health- FGS 29 Jawahir Adan Abdi MOH Ministry of Health- FGS 30 Faiza Kasim Hassan Public Sector Management Officer Ministry of Health- FGS 31 Harun Ahmed Mohamed Admin & Finance Officer Ministry of Health- FGS 32 Mariam Shiek Nor Community Health Officer BRA Ministry of Health- FGS 33 Abdirahman Mohamoud Omar Monitoring & Evaluation BRA Ministry of Health- FGS 34 Awes Ahmed Moalim Abdullahi Policy and Planning, BRA Ministry of Health- FGS Ministry of Education FGS 35 Faisal Abdullahi Mohamed RCRF Education Coordinator Ministry of Education - FGS 36 Mohamud Ahmed Rage Director of Policy and Planning Ministry of Education - FGS 37 Mohamud Abdikadir Warsame Intergovernmental Advisor Ministry of Education - FGS Puntland State of Somalia 38 Shukri Warsame Project Manager Ministry of Finance - PSS 39 Salma Osman Community Health Coordinator Ministry of Health - PSS 40 Issa Jama Monitoring & Evaluation Ministry of Health-PSS Jubbaland State of Somalia 41 Noor Omar Shalle Director General Ministry of Finance - JSS 42 Hassan Darwish Mohamed Project Manager Ministry of Finance - JSS 43 Faisal Mudey Hassan Head of EAFS Ministry of Finance - JSS 44 Abdirashid Aden Abdi Treasury Director Ministry of Finance - JSS 45 Yusuf Abdi Abdullahi Budget Director Ministry of Finance - JSS 46 Mohamed Moge Mohamed Social Safeguard Specialist Ministry of Finance - JSS 47 Abdikadir Mohamoud Hassan Head of Accounting Section, EAFS Ministry of Finance - JSS 48 Hussein Maalin Ali Direct General Ministry of Health - JSS 49 Shamso Abdirahman Dahir Monitoring & Evaluation Specialist Ministry of Health - JSS 50 Abdirahman Mohamed Ibrahim Community Health Coordinator Ministry of Health - JSS Southwest State of Somalia 51 Hussein Hassan Bunow RCRF Project Manager Ministry of Finance - SWSS 52 Mohamud Mohamed Hassan EAFS Director Ministry of Finance - SWSS 53 Mohamed Dahir Moallim Social Safeguard Specialist Ministry of Finance - SWSS 54 Abdulkadir Abdurahman Ali Project Accountant-EAFS Ministry of Finance - SWSS 55 Abdiaziz Moallim Hussein Budget Director Ministry of Finance - SWSS 56 Kadar Ahmed Mohamed Treasury Director Ministry of Finance - SWSS 57 Ali Abdi Adan Director General MoF Ministry of Finance - SWSS 58 Ibrahim Adam Ali Director General MoH Ministry of Health - SWSS 59 Abdilkadir Mohamed Hassan Community Health Coordinator Ministry of Health - SWSS 60 Ibrahim Ahmed Ibrahim Chief Operating Officer FRS 61 Abdullahi Mohamed Saney Contract Management and M&E Ministry of Health - SWSS Galmudug State of Somalia 62 Abdiwali Mohamed Ahmed Director General Ministry of Health - GSS 63 Abukar Muhudin Ali Director General Ministry of Finance - GSS 64 Abdinasir Abdullahi Said Project Manager Ministry of Finance - GSS 65 Abdullahi Ali Hashi EAFS Director Ministry of Finance - GSS 66 Mohamud Ibrahim Adan Budget Director Ministry of Finance - GSS 67 Abdishakur Isse Hashi Social Safeguard Specialist Ministry of Finance - GSS 68 Mohamed Abdullahi Hassan Head of Accounting Secretary Ministry of Health - GSS 69 Abdihakin Mohamed Dirie Community Health Coordinator Ministry of Health - GSS 70 Abdifitah Salad Tarabi Abdifitah Salad Tarabi Ministry of Health - GSS Hirshabelle State of Somalia 71 Mowlid Khalif Sabriye Project Manager Ministry of Finance - HSS 72 Abdullahi Salah Mudei Director General, MoF Ministry of Finance - HSS 73 Hassan Ahmed Tohob Treasury Director Ministry of Finance - HSS 74 Khalid Hassan Mohamed Budget Director Ministry of Finance - HSS 75 Abdirashid Mohamed Mohamoud EAFS Director Ministry of Finance - HSS 76 Fadumo Abdulle Hilowle Community Health Coordinator Ministry of Health - HSS 77 Feysal Yabarow Sharey Head of Accounting Section, EAFS Ministry of Finance - HSS 78 Hanifa Hassan Abdullahi Director General MoH Ministry of Health - HSS 79 Rahma Omar Social Safeguard Specialist Ministry of Finance - HSS World Bank Group 56 Alma Nurshaikhova Senior Public Sector Specialist & Task Team Leader World Bank 57 Mohamud Yasin Jama Senior Governance Specialist & Co-Task Team Leader World Bank 58 Abdisalam Ahmed Bahwal Health Specialist World Bank 59 Jacinta Achote Murunga Social Development Specialist World Bank 62 Nyabicha Omurwa Onang’o Financial Management Consultant World Bank 65 Vishal Patel Citizen Engagement Consultant World Bank 67 Dahir Warsame Procurement Consultant World Bank 69 Alyssa Louise Davis Community Health Consultant World Bank 71 Ruth Akisa Oriama Governance Consultant World Bank 72 Saad Omer Siddiqui ICT Consultant World Bank 73 Fowzia Ibrahim Hussein Education Consultant World Bank 74 Violet Tsindori Amani Team Assistant World Bank 75 Ousman Abdulahi Ali Economist World Bank 76 Benard Olayo Senior Health Specialist World Bank 77 Peter Okwero Senior Health Specialist World Bank Annex 2. Project Results Framework PDO Indicators by Objectives / Outcomes Recurrent cost finance to reform resource management systems Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Valu Month/Year e Share of civil servants' 80.00 Dec/2019 85.00 20-Dec-2023 86.90 31- December- 100.00 Dec/2026 2024 salaries financed by The share of civil servants’ salaries financed by the government in 2024 is 86.9%. RCRF government financed US$4,989,085 divided by total formalized payroll (monitored) of US$38,164,949. (Percentage) 67.00 Dec/2019 75.00 20-Dec-2023 83.00 31- December- 85.00 Dec/2026 Eligible civil servants salaries 2024 paid on time (Percentage) In 2024, 83% of payments were made within 3 days of the end of the nominal payroll month (10 of 12 months) consistent with FY2024 target. The government is on course to meet the end target value of 85% (11 of 12 months). Strengthen inter-governmental fiscal relations Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Valu Month/Year e Number of FMS signing 0.00 Dec/2019 5.00 20-Dec-2023 5.00 31- December- 5.00 Dec/2026 Service Delivery Transfer 2024 Agreements with FGS Comments on Memorandums of Understanding on functional assignment in the education were signed by (Number) achieving targets 4 FMS Ministries of Educations except Puntland. Updated health service delivery agreement is signed by JSS Ministry of Health. The rest four are expected by March 31, 2025. Transfers for core Govt functions and foundational education and health service delivery mechanisms Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Valu Month/Year e Female Health Workers 354.00 Dec/2019 859.00 20-Dec-2023 1,484.00 31- December- 3,000.00 Dec/2026 2024 11 selected according to Comments on The Community Health Program has expanded to 1,484 Female Health Workers (FHWs) and guidelines, trained, and achieving targets supervisors, with training and deployment completed in three states. Two additional states actively providing services (SWSS and GSS) are expected to complete their deployment by May 2025. The selection of an (Number) additional 700 FHWs is anticipated by December 2025. 1,554.00 May/2020 0.00 20-Dec-2023 1,166.00 31- December- 2,000.00 Dec/2026 2024 Number of schools that are Comments on The number of schools that were supervised in four FMS using digital tools was 1,166 in 2024. supervised using digital achieving targets 850 BRA schools will be supervised in March 2025. The description and the methodology of tools, including self- the indicator was changed to read “every three years” and removes “annually” which means assessment (Number) schools will be supervised once every three years. The cumulative number of schools supervised at least once in three years will be reported in the next ISR. Number of schools that are 0.00 Dec/2019 0.00 20-Dec-2023 80.00 31- December- 320.00 Dec/2026 self-assessed (cumulative) 2024 (Number) Comments on School self-assessment methodology was piloted in 80 schools in 2024 with a plan of further achieving targets 400 schools to be self-assessed in June 2025 at FMS and BRA. Intermediate Results Indicators by Components Component 1: Recurrent cost finance to reform resource management systems Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year Payment process Dec/2019 Business process 20- The MoF has 31- The MoF has Dec/2026 involves parallel review report Dec- developed an Dec- implemented the manual and prepared and 2023 action plan on the 2024 approved electronic steps, endorsed. Special implementation comprehensive multiple approval internal audit on of updated procedures and steps are required, payroll processes has comprehensive issued an Strengthen payment new PFM law not been conducted and procedures, to be implementation process for operational yet reflected in report shared with financed by SERP. status report. At expenditures and payroll Business processes. the World Bank team 6 out of 9 internal least 65 percent (Text) PBC audit findings on of identified audit payroll have been Recommendations submitted for on payroll verification. IVA management are report indicate at addressed with least 5 audit evidence 12 recommendation provided are still not met and require further evidence to confirm they have been achieved. Poor systems Dec/2019 SOMCAS has been 20- PBC 1.1. 31- SOMCAS and ITAS Dec/2026 capacity: piloted in FGS and is Dec- completed - Dec- implemented in organizational, in the process of 2023 SOMCAS system is 2024 FGS technology, HR being piloted in JSS operational in and workflows to by the end of Mogadishu. PBC support effective December 2023. 1.2 completed - and efficient However, in PSS the Manuals are customs process has not adopted and management. begun. In the simplified meantime, the ITAS functional review Quality Assurance of FGS customs firm is being approved. PBC 1.3 contracted on track. The procurement of the third-party company for the Strengthen domestic development of revenue administration ITAS is expected (Text) by May 2025. 13 Comments on The AGO initially reported having addressed six out of nine audit recommendations on achieving targets payroll processes. However, the IVA report confirms that at least five issues remain unresolved due to insufficient evidence. The team is working to provide additional proof to finalize PBC 2.4, with ongoing efforts through SERP to improve HR policies, develop an HRMIS, and strengthen civil servant recruitment. Component 2: Strengthen inter-governmental fiscal relations Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year 0.00 Dec/2019 6.00 20- 12.00 31- 12.00 Dec/2026 Dec- Dec- Consolidated fiscal reports 2023 2024 published online by FGS Comments on FGS Ministry of Finance fully published online the consolidated monthly financial reports for Ministry of Finance achieving targets the year Jan-Dec 2024 consolidated monthly fiscal reports were also published online by the (Number) FGS Ministry of Finance. https://mof.gov.so/publications/consolidated-fiscal-reports 14 While Inter- Dec/2019 The fiscal transfers 20- The FMS 31- FGS’ budget Dec/2026 Governmental formula was Dec- completed self- Dec- provides for Fiscal Transfer endorsed and 2023 assessments for 2024 appropriations for Policy Paper has approved by the FY2023 and FGS’ fiscal been agreed, it Finance Ministries in FY2024. FY 2025 transfers to still requires January 2023. The approved grants to FMS/BRA as per operationalization. draft budget for Federal Member an inter- Current approach FY2024 is expected States reflected in governmentally to distribution of to allocate budget the budget policy agreed formula. funds between support to the FMS Framework paper. FMFF adopts a Strengthen inter- FGS and using the formula. framework for governmental fiscal policy FMS/Benadir the framework (Text) PBC Regional operationalization Administration of the NCC (BRA) is agreement on In equitable. revenue assignment and expenditure responsibilities Comments on The Grant Sharing Formula reviewed, with no changes for 2024 and updates planned for FY achieving targets 2025. FY 2025 approved grants to Federal Member States reflected in the budget policy Framework paper. 15 Selected FMS have Dec/2019 Met for 2022. The 20- Not met for 2023. 31- FGS’s fiscal Dec/2026 minimal sources of execution rate for Dec- The execution Dec- transfers revenue, and fiscal transfers to 2023 rate for the fiscal 2024 execution rate for therefore difficulty FMS for the months transfers to FMSs the previous FY to in sustaining their Jan-December of for FY2023 is 74%, FMS/BRA is equal operations, while 2022 is 112.5%, ($90,928,689 to, or greater FGS collects tax ($107.49m/$95.55m) /$123,130,376.38) than, the out turn and customs, which is greater than which is less than rate for FGS’s partly from goods the outturn rate for the outturn rate domestic Strengthen FGS transfers and services that domestic revenue of for domestic revenues. to FMS (Text) PBC are destined for 105%, revenue of 116%, delivery in FMS. ($262.7m/$250.1m) ($329.5/283.3m). FGS transfers to FMS have been made on an ad hoc basis. Comment: The execution rate for the fiscal transfers to FMSs/BRA for FY2024 is 69.9% ($83,282,527 / $119,073,861), which is less than the outturn rate for domestic revenue of 107% ($369,353,791 / $346,183,627). The calculation is based on the 5A fiscal summary report as well as the FGS budget utilization Excel spreadsheet as of 31 December 2024. The FGS has not met this indicator in FY2023 and FY2024. Efforts will be required to meet it in FY2025. Component 3: Transfers for core government functions and foundational education health service delivery mechanisms in eligible Federal Member States (FMS) Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year 0 Dec/2029 39,247 Dec/202 108,493 31- 60,000 Dec/2026 People receiving quality 3 Dec- health, nutrition, and 2024 population services Comments on Since the start of the data collection, as of 25 Feb 2025, a total of 15,422 pregnant women; (Number of people) CRI achieving targets 93,071 children under 5 years (including girls) were attended by trained Female Health Workers (FHW) which totals 108,493. 16 0 Dec/2023 0 31 0 Dec/2026 People receiving quality Dec- health, nutrition, and 2024 Comments on The sub-indicator cannot be tracked population services achieving targets – Youth (Number of people) CRI People receiving 0 Dec/2029 7,851 Dec/20 23,193 31- 15,000 Dec/2026 quality health, 23 Dec- nutrition, and 2024 population services Comments on The total number of females attended by trained Female Health Workers (FHWs) is 23,193. – Female (Number achieving targets of people) CRI Number of women and 0 Dec/2019 7,851 pregnant 20- 15,422 pregnant 31- 15,000 pregnant Dec/2026 children visited by Female women; 31,396 Dec- women; 93,071 Dec- women; 45,000 Health Workers children under 5 2023 children under 5 2024 children (Text) PBC years years. 0.00 Dec/2019 100.00 20- 100.00 31- 90.00 Dec/2026 Community health service Dec- Dec- delivery plan funds 2023 2024 executed in a timely Comments on Percentage of participating governments meeting indicator. Funds were transferred to manner, in line with achieving targets FMS’ in September 2022, once the activity ascribed in PBC 7.3 was successfully completed. Service Delivery The Financial Reports on the utilization of these funds were submitted by the FMS’ as Agreement (Percentage) ascribed in PBC 7.4 and associated fund were disbursed. The share of FHWs 0.00 Dec/2020 88.90 20- 60 31- 75.00 Dec/2026 complying with the Dec- Dec- monthly requirements of 2023 2024 reporting with the prescribed digital tools (Percentage) 17 Comment on achieving the target The share of FHWs complying with monthly digital reporting requirements has fluctuated due to substantial workforce growth, malfunctioning phones, and supply disruptions. However, the FGS and FMSs have recently established monthly reporting and follow-up HR procedures for non- functioning and low-performing FHWs, which should substantially improve reporting compliance in 2025. A mobile phone repair agency has been contracted to address malfunctioning phones, while new supply agreements have been made to resolve supply delays in PSS and HSS. Limited tools to Dec/2019 Two functional 20- As of February 31- Each FMS (i) Dec/2026 enable assignment Dec- 2025, all Dec- adopts the government to agreements (MoUs) 2023 functional 2024 national student Strengthen education improved were signed in assignment learning service delivery (Text) PBC educational 2023.Puntland is not agreements are assessment quality at school a signatory signed except strategy and level. Limited for Puntland. framework and funds available to The national submits the action support service learning plan on its delivery at school assessment is implementation; level. progressing, (ii) submits a with a mid-2025 report on the pilot planned. implementation of The national the national school school financing financing policy at framework is the FMS level; and (iii) approves under review aggregate FY 2026 and will be budgetary adopted in the appropriations for April-May 2025 MoEs equal to the intergovernmen aggregated tal education Allocated Amounts forum for PBCs 8.10. 18 Share of teachers reporting 0.00 Dec/2019 31.80 20- 67% 31- 70.00 Dec/2026 timely payment of salaries Dec- Dec- through citizen 2023 2024 engagement mechanisms, Comments on A total of 1,049 teachers across FMS and BRA (except PSS) out of 1,430 teachers reached disaggregated by gender achieving targets reported timely payment of salaries in August 2024 through the Citizen Engagement Center, (Percentage) including 164 female teachers (15.6%) and 885 male teachers (84.4%). This represents an improvement from the previous survey conducted, where only 37% of teachers reported timely payments. Share of female teachers 0.00 Dec/2019 31.80 20- 78.8% 31- 70.00 Dec/2026 reporting timely payment Dec- Dec- of salaries through citizen 2023 2024 engagement mechanisms Comments on Among the 206 female teachers engaged in August 2024 across FMS and BRA (except PSS), (Percentage) achieving targets 164 (78.8%) reported receiving their salaries without delays. Component 4: Citizen Engagement and Feedback Baseline Actual (Previous) Actual (Current) Closing Period 19 Value Month/Year Value Date Value Date Value Month/Year Indicator Name 2019 rating on Dec/2019 2022 rating on 20- 2023 rating on 31- Improved rating Dec/2026 budget budget transparency Dec- budget Dec- under OBS on transparency under OBS (20 in 2023 transparency - 37, 2024 budget under OBS (8 in 2021) and public oversight - 37, transparency and 2018) and public participation (0 in public public participation (2 in 2021) participation - 0 participation to Improved budget 2018) 18 and 6 points transparency through respectively public participation in Comments on Budget consultations workshop was held in Mogadishu on the 16th of January 2024 where budget process (Text) achieving targets key budget stakeholders were Invited. It is expected that the public participation rating will improve in the next OBC survey results 0 Jun/2021 19,581 20- 28,207 31- 20,000 Dec/2026 Dec- Dec- 2023 2024 Number of total beneficiaries connected Comments on Since the establishment of the Talo Wadaag citizen engagement center, a total of 28,207 achieving targets citizens have been contacted. This includes 1,222 existing FHWs, 60 FHSs, 16,501 household through citizen heads, 2,561 pregnant mothers, 136 community health committees, 2,511 households with engagement ICT systems, under five children, 807 referred persons, 416 persons with disabilities, 681 IDPs, 218 nomads, disaggregated by target 185 senior citizens, 1,258 teachers, 1,483 community education committees, and 168 replaced beneficiary group (Text) FHWs." 0 Dec/2019 76.6% for GM 20- 96.88% for GM 31- 96.88% for GM; Dec/2026 Percentage of people who Dec- 33% for service Dec- 61% shared feedback through 2023 delivery 2024 for service citizen engagement ICT delivery feedback systems and were Comments on From January to December 2024, a total of 64 grievances were recorded, with 62 successfully responded to with achieving targets resolved, achieving a resolution rate of 96.88%. Regarding service delivery feedback, 11,218 corrective actions taken by unique beneficiaries successfully participated in health campaigns and provided qualitative government, disaggregated feedback, with 6,843 individuals (61%) receiving responses from citizen engagement focal by target beneficiary group points at the respective Ministries of Health through the Talo Wadaag platform. (Text). 20 Annex 3: Agreed Actions Matrix Revised Topic And Tasks Responsible Timeline Status Remarks Timeline Component 1: Recurrent cost finance to reform resource management systems Payroll processing and automation To enhance payroll management, the AGO team will address PIU, MoF EAFS, January 31, 2024 In Progress Successfully tested and resolved April 30, outstanding audit recommendations and implement improvements to AG existing payroll process and automation 2025 streamline payroll processes. This includes updating human resources issues. The CBS resolved the phase one policies, developing a comprehensive Human Resources Management IT issues. A report should be prepared Information System (HRMIS), and strengthening civil servant on the findings. The action plan still recruitment procedures to ensure accuracy, efficiency, and timeliness needs to be shared, and this activity is in payroll operations delayed. The IVA report on PBC 2.4 on addressing Audit recommendations was returned to the FGS with comments from the WB requesting additional evidence that the PBC is met. The Accountant General Office (AGO) to provide additional evidence that PBC 2.4 on addressing audit recommendations have been completed. The Accountant General Office (AGO) to provide additional evidence that PBC 2.4 on addressing audit recommendations have been completed. Ensure that FGS salaries are paid on time in January-December MOF EAFS December 31, In progress The FGS to ensure WA application are December 31, 2025 and in January-December 2026. 2024 submitted on time to ensure enough 2025 liquidity for disbursement Conduct a high-level inter-agency PBC review meeting chaired by PIU Starting In progress Currently there are internal discussion Quarterly, the Minister of Finance September 2023 between the team to effectively December 31, undertake this task. The Minister has 2025 been briefed on the requirement but has not yet set the timetable for a recurrent meeting. The PIU team will follow to ensure this is achieved. 21 Finalize contracting of the IVA firm OAuG, PIU October 30, 2024 In progress The contracting of the IVA is at the March 31, signing stage 2025 Submit the next round of IVA report PIU, OAuG November 15, In progress June 31, 2024 2025 Resolve SOE errors before the next submission deadline PIU, OAuG New The World Bank team to reassess the ineffective spending on the WB FM team New June 31, translation services 2025 Component 2: Strengthening inter-governmental fiscal relations Conduct third party monitoring including baseline assessment and RCRF PIU September 15, In progress The firm is being contracted and should December 31, capacity assessment for the eligible district governments to support Inter- 2024 start its work in April 2025 implementation of the intergovernmental transfers to the local governmental government. advisers Allocate inter-governmental transfer budget to districts in FY2025 FMS Budget December 30, Complete Each FMS has allocated a budget of US$ budget department/RCRF 2024 150,000 for intergovernmental transfers PIU to districts in FY2025. The FGS has Inter- reflected this transfer in the FY2025 governmental budget. Furthermore, it is expected that advisers the cash flow projections will be guided by realistic estimates benchmarked from existing or previous local government initiatives such as JPLG. Inter-governmental budget allocation for FY2025 at FGS and FMS Budget December 30, Complete FGS FY2025 budget appropriation and level reflect grant formula allocation based on the outcome of the departments/IGFF 2024 budget framework paper allocates verified self-assessment. Advisers intergovernmental transfers to the FMS using the agreed grant formula. Hirshabelle to create an action plan on how to improve its revenue HSS MOF September 30, Complete Hirshabelle has adopted the action plan performance as indicated in the self-assessment report 2024 and has shown improvement in the FY2024 self-assessment report. FMS to submit data on expended EEP as per the shared template FMS EAFS September 15, In progress FMS except Puntland submitted 2024 information on temporary workers’ and legislature’s wage bill processed through relevant FMS Financial Management 22 Information Systems (FMIS) payroll on February 24, 2025 The decision on the scope of the EEP and procedures for its WB, MA, PIU October 15, 2024 In progress Once the monitoring agent analyzes the verification is made submitted information, an agreement will be reached on the scope of the EEP and the next steps. This will include determining whether any additional information is required from the FMS, including Puntland. The RCRF FM specialist to provide reconciliations from RCRF III PIU On a semi- Ongoing On a semi-annual inception to date for DA-A and DA-B as at each 30 June and 31 annual and and December by the end of the first month following each 30 June and annual basis. annual basis. 31 December. The DA-B reconciliation is to be supported by FMS PA reconciliations from the inception of RCRF III to 30 June. Component 3: Transfers for core government functions and foundational education and health service delivery mechanisms in eligible FMSs Education financing and systems strengthening Absorbing RCRF teachers to NTI Data Integration and Analysis: Combine survey results and Faisal (Lead), Ali February 20, 2025 New administrative data analysis into a single comprehensive presentation. (Support) Application Process Analysis: Conduct further analysis on why Ali (Lead), Call March 15th, 2025 New teachers did not apply, including percentages for each reason. Focus Center (Support) on the 321 teachers who did not apply due to various reasons. Hybrid Supervision Mission to sit with RCRF teacher committees in DG Basic Education April 15th, 2025 New each state and the leadership of the FMS MoEs to learn how they (Lead), Faisal support RCRF teachers and develop a communication strategy on how (Coordinate) to support them. Teacher Onboarding Strategy: Explore the possibility of automatically Faisal (Lead), HR April 30, 2025 New onboarding waitlisted teachers, especially those from the RCRF Department program. Prepare a proposal for leadership review. (Support) Community Mobilization at FMS level: Mobilize communication Faisal (lead), Ali May-June 5, 2025 New education committees and to teachers to encourage teachers to apply (support) in the round of application that will be made open mid-2025 Communication Enhancement: Deploy an improved communication FMS MOEs (Lead), May-June 5, 2025 New strategy for teachers who were not selected, explaining reasons and Communications encouraging future applications. Team Lead, Ali (Support) Application Process Improvement: Develop strategies to increase the FMS DGs and Faisal July 11, 2025 New application rate, addressing the gap between recipients and applicants. (Lead), Call Center 23 Include plans to support the 214 teachers who expressed interest in Ali (Support) applying if given another chance. Exam and Interview Process Review: Analyze the exam and interview Examination Board July20th, 2025 New process, focusing on improving pass rates. Address discrepancies Chair, Faisal between exam and interview results. (Oversight) Contract Management: Review and improve the contract offering and Legal Department August 15, 2025 New signing process, addressing why some eligible teachers did not sign Head, HR their contracts. Department (Support), Faisal (Coordinate) Stakeholder Review: Conduct another review meeting with Permanent Faisal (Lead) August 20, 2025 New Secretaries and Director Generals of FMS to evaluate the entire process and agree on next steps for implementation. FGS MOECHE & PSS Ministry of Education & Higher Education RCRF Education September 15, Ongoing Provided for BRA, SWS & GSS whole March 15, 2025 (MOEHE) to provide details of teacher payroll for the expanded EEP as Coordinator 2024 HSS, JSS, still in progress. per the agreed template FGS MOECHE provide details of RCRF onboarding to MoECHE October 1, 2024 Ongoing 150 teachers were onboarded but March 15, 2025 government payroll MOECHE is still to provide the details Conduct school assessment exercise in BRA RCRF Education October 1, 2024 Ongoing 1,160 schools in GSS, HSS, SWSS, JSS April 2025 Coordinator were supervised in December 2024. BRA schools will be supervised in April 2025. Submit the statistics of the school-assessment since 2020, providing RCRF Education April 30, 2025 New the total number of schools, and the number of schools supervised in Coordinator each supervisions cycle, clarifying the number of times each school was supervised since 2020 FGS MoECHE Quality Assurance Department to share plans and FGS Quality November 30, Pending June 2025 budget on the roll-out of school self-assessment in 2025 Assurance 2024 Director Continue discussions with the Somali Education for Human Capital FGS/FMS September 2024 Ongoing Draft National School Financing Policy April 2025 Development project on finalizing the National School Financing MoECHE, Somali to be finalized in April 2025. National Policy, operational guidelines, and the National Student Learning Education for Student Learning Assessment Assessment framework to meet the RCRF education PBCs for both Human Capital Framework to be finalized by December FGS and FMS. Development 2025. project 24 Submit an annual plan for inter-governmental education forum RCRF Education January 31, 2025 Completed committee meetings at different levels (ministerial and DG). Coordinator and Inter- governmental Advisor PBC 8.5: FMS EAFS to submit financial reports on the use of PBC RCRF Education April 20, 2024 New 8.4 (fully utilized) and PBC8.3 (up to date as it finances salaries) and Coordinator, FMS contact Ministries of Education to prepare the implementation reports EAFS, Project Managers Health Services Recruitment and training of new female health workers (FHWs) to FGS/FMS MoH, December 2024 Ongoing Puntland, Jubaland, and Hirshabelle have May 2025 continue, with a focus on ensuring timely residential training and HTP completed the recruitment. SWSS and addressing logistical delays GSS to be finalized by May 2025. FMS to finalize service delivery plans and respective implementation FGS/FMS MoH, November 2024 Ongoing HSS, GSS, SWSS, PSS to submit PBC 7.5 March 8, 2025 and financial reports on the use of federal transfers covering FY 2023 HTP by March 8 reflecting 140 FHWs; HSS, (PBC 7.5, 7.6). FMSs with the issues of limited distribution costings PSS to submit PBC 7.6 by March 8; GSS and SWSS to submit financial reports after should consider necessary allocations in the submission of the the funds are fully utilized. JSS submitted respective plans the report and received NOL for PBC 7.5. Develop a new approach to FHW training for cost-efficiency and FGS/FMS MoH, July 2025 New HTP will provide support in compiling sustainability, including considering partnerships with medical or other HTP and assessing potential training schools schools and universities. March – May 2025; discussion of proposed options to be discussed between FGS and FMS MOHs by July 2025. FHW performance data will continue to be reported monthly; reports FGS Data Analysis, April 2025 New FHW performance data has been reported will be updated to include key service delivery metrics and FHS FMS MoH CHCs monthly since August 2024; adjusted performance data. and M&Es template for monthly report will be rolled out starting from April 2025. FGS/FMS MoH March 2025 New The FHW Memo has been signed by the FHW Memo: Procedures for Addressing Absent/Non-Functioning and FGS HR Director and FMS MOH DGs of Low-Performing Female Health Workers (FHWs) and Female Health GSS, HSS, GSS, JSS and SWSS (awaiting Supervisors (FHSs). FMS MOH prepares the documentation as PSS signature). described and submits it to FMS MOF. Citizen engagement campaigns will be conducted monthly to gather feedback from low- performing FHWs for PIU review. The procurement process to guarantee that phones procured meet the FGS/FMS MoH & August 30, 2024 Ongoing required specifications. All phones should be tested for functionality HTP 25 upon receipt and reviewed just before the warranty period ends to ensure they are still operational. Mobile phones assessed by the mobile repair agency as irreparable FGS/FMS MoH; March 2025 New FMS CHCs have signed receipt of the will be replaced by 400 mobiles provided by UNICEF as needed PIU Director mobile phones moving forward; user agreements will remain the same (i.e., FHWs are responsible for replacing lost/stole mobiles). Irreparable phones will be returned to PIU to manage recycling or disposal according to environmental protocols. Transition of community health digital data management from ODK FGS/FMS MoH, December 2024 Ongoing The DHIS2 firm is being contracted and is September 2025 to the DHIS2 platform to be completed by September 2025, with all HTP at RFP stage. The contract signing is data migrated and the new system operational expected by April 15, 2025, and activities to start by May 2025. FGS to finalize community health strategy and human resources for FGS MoH December 2024 Ongoing HRH Policy finalized and to be endorsed April 30, 2025 health policy by the FGS and FMS MOHs by March 8, 2025. Draft CHS to be circulated in early March and expected to be adopted by April 30, 2025. Urgently resolve the ethical concern regarding implementing POM FGS/FMS MoH, November 2024 Ongoing Addressed malfunctioning smartphone September 2025 requirements for FHW payment, especially when FHWs have not HTP issues, data bundles and developed been paid for months, lack data bundles, or do not have functioning guideline for low performing FHWs (Memo) phones. A clear plan to be established for managing mobile phones, FGS/FMS MoH November 2024 Completed A firm procured to address the issue of particularly addressing what actions will be taken when phones malfunctioning phones malfunction and need replacement. This will ensure continuity in communication and data management for FHWs. An intergovernmental meeting with development partners to be FGS/FMS MoH, November 2024 Not started To be integrated into advocacy activities November 2025 organized, focusing solely on the FHW program inviting HTP following finalization of the updated humanitarian and development partners. This will facilitate mutual national Community Health Strategy in April 2025. accountability and collaboration on key issues affecting the program. 26 Create a straightforward monthly report that lists the total number FGS/FMS MoH, August 30, 2024 Completed FMS prepared monthly FHW performance and FHW IDs for those without a functioning phone, those lacking HTP reports from August 2024 through January data bundles, those reporting less than 50% performance, and those 2025. who haven't received payment. This report should be circulated to all relevant FMS MOH, MOF, and PIU focal points to ensure transparency and accountability. Component 4: Citizen engagement and feedback Prepare closing feedback loop report as part of PBC 7.8 FGS Citizen December 31 Ongoing Draft reports presented by each of the Engagement Focal 2024 states during updates meetings based on Point, PIU/ agreed-upon templates. New reports to be MoF/FMS-MoH re-submitted end 2025. FMS call center reporting to include response times and analysis of FGS Citizen December 31, Ongoing To be implemented in the contract period Regularly quality of response/resolution in regard to beneficiary feedback and Engagement Focal 2024, starting Feb 2025 of the Call Centre. government response. Point, PIU/ Satisfaction and effectiveness. MoF/FMS-MoH Also effectiveness of the behavior change. Feedback based on unique numbers. FMS to outline and formalize the process by which call center FGS Citizen December 31, Ongoing Regularly feedback is fed into the ministry’s decision -making process. Engagement Focal 2024, Point, PIU/ MoF/FMS-MoH Launch activities for development and publication of budget PIU, MOF budget 30 June 2025 Ongoing Q1, Q2, and Q3, policy brief published focused policy notes with think tank department and CSO and Finance Committee surveys prepared; Publication of Q4, CSO engagement, and general public engagement pending. Complete procurement of second phase of budget transparency PIU, MOF budget 30 June 2025 Ongoing ToR prepared activities department Prepare revised Citizens Budget, publish online, and prepare template PIU, MOF budget 30 June 2025 Ongoing Two drafts prepared; pending firm for future use department implementation of latest round of comments; once finalized to be published and template developed Finalize and Approve 2025 Campaign Targets: Maintain targets for Abdisalam, Ali, Ongoing Approved, pregnant women (100 beneficiaries), under-five children (150 per FMS CE Focal implementation quarter), household heads (500 biannually), and teachers Points, FGS PIU in progress (biannually). Develop strategies for nomadic population engagement Team 27 and for diversifying further the number of beneficiary groups while updating the Right to Health dashboard, as well as the FHS Daily Activity Tracker for Galmudug and Hirshabelle 2025 updates. Enhance ODK Reporting and Registration Systems. Abdinasir Gedi, PSI April 5, 2025 In progress Update ODK to include mandatory guardian phone numbers for Team under-five registrations and reflect treated referrals. Design instructional videos for FHWs on ODK use. April 10, July 10, Ongoing October 10, 2025 Submit quarterly beneficiary contact details, including gender data, by the 10th of each quarter. FMS CE Teams Streamline Reporting on FHW Performance FMS CE Focal Monthly In progress Implement monthly reporting on dismissals of non-performing or non- Points, Abdisalam, reporting FHWs and share documentation with FGS PIU. Develop FGS PIU Team new scripts for warnings and dismissal processes. Redesign and Improve Campaign Scripts Ruth & PSI Team, N/A In progress Adjust scripts for key campaigns (H0004, H0005, H0011, H0015, Abdisalam H0016, H0024) to improve effectiveness and address identified gaps per state. Launch awareness campaigns to reintroduce the role of FHWs. Mass Media Strategies CE Focal Points, March 15, 2025 Planning phase Conduct one townhall per state by March 15, 2025. Utilize social Hamida media influencers and talk shows for campaign messaging. Explore identifiable clothing options for FHWs for easier recognition. Submit key media topics for coverage from each state. Emphasize on reporting of quantitative feedback collection of data. Optimize IT Infrastructure for Citizen Engagement Solutions Architect, Q4 2025 In progress Ensure integration of communication channels (SMS, WhatsApp, System Lead Voice, Email). Maintain a minimum system uptime of 95% and enhance MEAL CRM capabilities with AI-driven analytics by Q4 2025. Conduct regular system audits and performance reviews. Develop a Transition Plan Project Manager August 2025 Planning phase Prepare a detailed handover plan by August 2025 with system documentation and operational manuals. Conduct knowledge transfer sessions with government staff to ensure sustainability beyond the project’s duration. Begin migration by April 2026. 28 Improve Data Security and Privacy Protocols Data Analyst, Annually Ongoing Conduct periodic audits to ensure compliance with data protection External Auditor standards while maintaining high-quality data management practices across all campaigns. Ensure data quality and confidentiality as per protocols. Build Capacity Through Training Programs Supervisor Quarterly Ongoing Conduct quarterly training sessions for multi-level users on the Talo Wadaag platform and ongoing training for call center staff on data management and citizen engagement best practices. Component 5: Project management Update the POM to reflect revised PEC, NSRC Phase 1 and 2 for PIU September 30, In progress The POM will be updated based on the March 31, 2025 Puntland. 2024 agreed amendments from the RCRF PMT meeting in February 2025. PIU to submit draft Budget allocations and AWP for 2025 PIU September 30, In progress AWP was not submitted to WB No 2024 Objection after WB comments Reconcile the FY2023 variance on Income of US$40,613.56 PIU December 31, In progress The communication to Government has 2024 already been done via Bank review letter feedback for FY2023 audit Involve and work with the Internal Audit Unit in MoF to conduct PIU, IA December 31, In progress This is one of the recommendations Internal Audit review of the project’s Internal controls other 2024 arising from the audit of Project accounts processes of the project operations by December 31, 2024. for FY 2023. Environmental and social (E&S) safeguards Notify the Bank about the project-related incidents that have PIU Immediate Continuous June 30, 2024 occurred but have yet to report to the Bank. Conduct a GBV Service Mapping Exercise in Somalia PIU December 31, In progress October 30, 2024 2023 Expedite the recruitment of a Social Specialist in Puntland. PIU November 30, In progress The hiring process for a Social Safeguard 2024 Specialist in Puntland should be expedited to strengthen environmental and social risk management and ensure effective safeguard implementation at the state level. 29 Follow-up on the progress of the RCRF financed teachers PIU September 30, Continuous transitioning to FGS and ensure the project GM is accessible to them. 2024 Security training PIU December 31, In progress 2024 Increased Frequency of Grievance Redress Committee (GRC) PIU New The committee meetings should be held on Meetings a quarterly basis rather than the current schedule of twice a year to enhance responsiveness and ensure timely resolution of grievances. Expedited Finalization of Gender-Based Violence (GBV) Mapping PIU New The process of completing the GBV Services service provider mapping across the country should be accelerated to ensure the availability of support services for survivors and the effective implementation of GBV risk mitigation measures. 30 Annex 4: Performance-Based Conditions (PBC) Status Table as of February 25, 2025 PERFORMANCE-BASED CONDITIONS *NOVEMB PROPOSED REFORMS *NOVEMBER *JUNE30, *NOVEMBER *JUNE 30, *JUNE30, *NOVEMBER *JANUARY 30, *JUNE30, *JANUARY *JUNE30, ER 30, 30, 2021 2022 30, 2022 2023 2024 30, 2024 2025 2025 30, 2026 2026 2023 1. Strengthen 1.2. MoF domestic revenue 1.1. MoF has (i) 1.4 administration has completed a Harmonized developed simplified tax 1.3 FGS has and functional identificatio procured the operationali review of n number 1.5 FGS and services of a 1.6. FGS zed the FGS (TIN) ‘third party’ to FMS implemented Somalia customs to structure develop and implemented Customs better implemente inland implement the the Administrat allocate d between revenue Integrated Tax harmonized ion System human FGS and ITAS Administratio Income Tax (SOMCAS) resources in n System selected in customs; (ii) (ITAS) FMS Mogadishu adopted Airport and SOMCAS Seaport procedure manuals. US$M 1 0.5 1.5 1.5 1 1 Completed Completed Proposals to Depends on (pending (pending Status Confirmed be received by the adoption disburseme disbursemen 03.01.25 of the law nt) t) 2. Strengthen 2.1. MoF payment process has: (i) 2.2. MoF 2.5. The for operational completed a internal audit MoF has 2.3 FY 2025 2.4. At least implemented expenditures and business department FGS budget 65% of the newly 2.6 payroll process has conducted is prepared identified approved Council of review for a special audit using the audit FGS’ on the payroll comprehensi Ministers SFMIS recommendati payment; processes and ve approved budget ons on payroll and (ii) provided clear procedures Internal preparation management prepared/iss recommendati and issued Audit module by are addressed ued a ons to an Charter November with evidence business strengthen the implementati 2024 provided. process payroll on status review weaknesses. report. report. 31 US$M 1 0.5 1.5 1 1 1 Status Not Missed for SERP confirmed, Draft FY25 unless procurement postponed to ready, Completed Completed Supplement at the the next consultatio ary Budget evaluation verification n needed is prepared stage cycle 3. Strengthen inter- 3.2. MoF governmental has relations published monthly fiscal reports using the 3.1. MoF new 3.3 FGS’s 3.5 FMFF has UCoA at 3.4 FGS’s 2024FY adopts a prepared the the six- 2025FY budget framework for budget for digit level budget provides for the Fiscal Year and provides for appropriatio operationalizat 2023 using reporting appropriations ns for ion of the the new formats for FGS’s FGS’s fiscal NCC unified generated fiscal transfers transfers to agreement on chart of through to FMS/BRA FMS/BRA revenue accounts the as per an as per an assignment (“UCoA”) financial updated inter- inter- and at the four- managem governmentall government expenditure digit ent y agreed ally agreed responsibilitie economic informati formula. formula s codes level. on system platforms of the FGS MoF and FMS starting from FY, 2023. US$M 1 1 1 1 1 Status Missed, as the self- assessment Completed Complete Completed results came (pending d late for the disbursement) budget preparation 32 4. Strengthen FGS 4.2 FGS’s transfers to FMS fiscal 4.1. FGS’s transfers fiscal transfers execution execution rate rate for the for the previous FY previous FY to to FMS/BRA FMS/BRA is equal to, or is equal to, greater than, or greater the outturn than, the rate for FGS’s outturn rate domestic for FGS’s revenues. domestic revenues. US$M 0.5 0.5 Status Missed, as domestic Completed revenue outturn rate was higher 5. Strengthen public 5.3. NCSC administration has (i) published an annual 5.4 (i) NCSC 5.1 The report on has Cabinet has the status of 5.5 All published an approved a women in permanent 5.2. NCSC annual report pay and senior FGS non- has published on the status grade leadership security an annual of women in reform positions for civil report on the senior including a the previous servants status of leadership plan for moved to women in year and (ii) positions for transitioning new Pay senior examined the previous Capacity and Grade leadership existing year; and (ii) Injection Scale and positions for policies and FGS reached Modality receive the previous practices at least 21% staff into the payments year. impacting of women in new pay and accordingl diversity senior grading y. and leadership system. positions. women’s employment in the civil service and 33 agreed on next steps. US$M 1 0.5 1.5 0.75 1 Status Completed Completed Completed 6. Wage bill 6.3 MOF management has (i) 6.5 MOF published has (i) details of published 6.8 At least 50% (in details of 6.7 30% of USD) of 100% (in 6.1 The Temporary temporary the non- USD) of the FGS has workers in workers in formal, non-formal, adopted a FGS non- FGS non- non- non-security reform plan security security security wage bill, on wage bill MDAs are MDAs wage bill, and (ii) transparenc mapped receive and (ii) issued a y and according to payments issued a progress managemen the new Pay according to progress report on t. and Grade the new Pay report on wage bill Scale. and Grade wage bill transparenc Scale transpare y and ncy and managemen managem t ent US$M 1 1.5 1.5 1 1 Status Depends on the Revised Complete Delayed Completed action plan to w d be shared by NCSC. 6.2. FGS 6.4. FGS 6.6. FGS has has has (i) implemente maintaine maintained d biometric d the use the use of attendance of the the monitoring biometric biometric systems attendanc attendance covering at e systems systems 34 least 60% of covering covering the non- at least 90% of the security 80% of non-security staff in the the non- staff in the MDAS and security selected appropriate staff in MDAs; (ii) disciplinary selected implementat and MDAs ion performance linked to continues to managemen the be linked to t actions by payroll payroll, NCSC are managem disciplinary taken. ent, and disciplina performance ry and managemen performa t; (iii) nce payroll managem managemen ent t policy is modules developed; (iv) assessed the existing implementat ion mechanisms and submitted a report on lessons learned including feedback by stakeholders . US$M 0.5 1 1 Status Postpone Postponed d to Jan to June 26 26 HRMIS to Completed HRMIS be to be implemente implemen d and linked ted and to SFMIS 35 linked to SFMIS 7. Strengthen FGS 7.11 Each and FMS resource 7.3. Each FMS has (i) management 7.8 Each FMS FMS have submitted a systems for health (i) signed has (i) report on 7.12 Each service delivery with FGS submitted a 7.5. Each closing the FMS has (i) updated report on FMS has (i) feedback loop adopted 7.1. Each Service closing the 7.4. Each updated with 7.9 Each FMS on citizen regulations FMS have Delivery feedback loop FMS have FGS Service has (i) signed engagement governing (i) signed Transfer on citizen (i) issued Delivery an MoU with campaigns in the Service Agreements engagement their Agreements 7.6. Each the FGS on the health registration Delivery (2022); (ii) campaigns in respective (2024); (ii) FMS has harmonizing sector in of health Transfer adopted the health implementat adopted issued their regulations for October 2024- professional annual sector in Agreements ion and annual respective health September s, facilities, community January- (ii) financial community implementat professionals, 2025; (ii) and training health September approved reports on health service ion and facilities, and adopted institutions; service 2024; (ii) budgetary the use of delivery financial training annual (ii) issued delivery adopted annual appropriatio federal reports on institutions; (ii) community their plans, plans, community ns for FY transfers the use of issued their health service respective including including 2020. covering FY health service infectious climate- federal respective delivery implementat 7.2. Each 2021 and delivery plans, disease induced transfers implementation plans, ion and FMS have the 1st half including measures disease covering FY and financial including financial (i) issued of FY 2022 climate- for FY measures for 2023 reports on the climate- reports on their in line with induced disease 2022; and FY 2024; and demonstrati use of federal induced the use of respective provisions measures for (iii) (iii) approved ng release transfers disease federal implementat of Service FY 2025; and approved of funds to covering FY measures for transfers Delivery FY2024 (iii) approved ion and budgetary Transfer budgetary MoHs as 2024 FY 2026; and covering FY financial appropriatio FY2025 Agreements appropriation specified in demonstrating (iii) approved 2025 reports on ns for FY budgetary the use of demonstrati s for MoH the POM the release of FY2026 demonstrati 2022 for the appropriations federal ng release equal to the funds to MoHs budgetary ng the health for MoH equal (service) of funds to aggregated as specified in appropriations release of sector equal to the transfers MoHs Allocated the POM. for MoH funds to to the aggregated aggregated Amounts for equal to the MoHs as Allocated Allocated PBC 7.5 and aggregated specified in Amounts for Amounts 7.6. Allocated the POM. PBC 7.8 and for PBCs Amounts for 7.9 7.3 and 7.4. PBCs 7.11 and 7.12. US$M 2.5+1.2 1.2 1.4 1.2 1.2 1.2 1.2 1.2 1.2 Status Completed Completed Completed Completed by JSS 36 7.7 FGS and FMS adopt (i) the 7.10 FGS and national FMS submit policy for implementatio managing n report on the non-civil national policy service for managing health non-civil cadre, service health including cadre, FHWs; (ii) including Community FHWs Health Strategy. US$M 0.5 0.5 Status In progress expected by April 2025 8. Strengthen 8.4. Each 8.5. Each 8.8 Each education service FMS has (i) FMS has (i) FMS (i) delivery. signed included adopts the 8.1. Each 8.2. Each functional information national FMS has (i) FMS has (i) assignment in its student signed signed 8.3. Each agreements financial learning functional functional FMS with FGS, reports on assessment assignment assignment included (ii) the use of strategy and agreements agreements informati submitted federal framework with FGS, with FGS, and on in its the costing transfers and submits and (ii) (ii) approved financial plan for equivalent the action approved aggregate FY reports on education to the plan on its aggregate 2023 the use of service amount of implementati FY 2022 budgetary federal delivery, PBC 8.3 on; (ii) budgetary appropriations transfers and (iii) and PBC8.4 submits a appropriatio for MoEs equal to approved in line with report on the ns for MoEs equal to the the aggregate the implementati equal to the aggregated amount of FY 2024 budgetary on of the aggregated Allocated PBC 8.1 budgetary appropriatio national Allocated Amounts for and 8.2 appropriatio ns, and (ii) school Amounts PBCs 8.2 and ns for MoEs submitted financing for PBC 8.1 8.3. equal to the implementat policy at the aggregated ion reports FMS level; Allocated of the and (iii) 37 Amounts education approves for PBCs service aggregate 8.4 and 8.5. delivery FY 2026 plans. budgetary appropriatio ns for MoEs equal to the aggregated Allocated Amounts for PBC 8.8 US$M 0.8 0.8 0.8 0.8 0.8 2.2 Status Complete Completed Completed Completed d 8.7 IGECF 8.9 IGECF 8.6 FGS adopts the adopts the absorbs national national RCRF school student teachers financing learning into the policy and assessment Government operational strategy and payroll guidelines framework US$M 0.9 0.9 0.9 Status In progress On track On track 9. Strengthening PFM 9.3. Each 9.1 MoF in and DRM in FMS (i) selected FMS Puntland undergoes a and 9.2. Each self- Jubbaland FMS assessment have undergoes an 9.5 Each in the 9.4 Each FMS developed assessment FMS to parameters to formalize and and formalize of revenue and operationali establishes a and enhancemen implement a zed the baseline on implement a t, common SOMCAS revenue common expenditure enhanced system, as enhancement, enhanced managemen transparency well as their expenditure transparency t, external initiative manuals of management, initiative audit and procedures and audit and reporting, in in five reporting. (ii) retains agreed the ratings locations. at least at 38 the same level as in the baseline assessment, and (iii) adopts an action plan on making improvemen ts on parameters with low scores. US$M 0.2 0.75 0.75 2.7 4 Status Completed Completed for Submitted Completed for (to be JSS (pending for GSS, HSS, disbursement) Jubbaland disbursed JSS, SWSS (to Submitted for (pending by be disbursed other FMS confirmatio 03.15.25) to PSS) (pending n) verification) 10. Budget 10.2 Public transparency consultations 10.1 Public held in consultations person and held in person online during 2025 during 2026 budget budget formulation formulation and summary and consultation summary report consultation published report published US$M 1 0.75 Status Completed (to be disbursed by 03.15.25) 39 Annex 5. Proposed changes to the Participation Eligibility Criteria The revised PEC maintains the core requirements of fiscal transparency, reporting, and eligibility criteria but introduces refinements to enhance accountability and oversight. In fiscal reporting, the updated PEC now mandates that both FGS and FMS governments disaggregate revenues and expenditures by fund source in addition to existing classifications. Reporting requirements remain consistent, with fiscal data required to be published quarterly online and shared monthly in Excel, now with the added fund source breakdown. For eligible expenditure programs, the new PEC introduces a requirement for expenditures contributing to the Eligible Expenditure Program (EEP) to submit documentation outlined in Annex 4 of the POM and a listing of costs in the Statement of Expenditure (SOE) format for better cost monitoring. In the social sector, the previous PEC mandated increasing the ratio of female teachers on RCRF-financed payrolls and in supported schools, with detailed reporting requirements. Monitoring frameworks for Female Health Workers (FHW) and Female Health Supervisors (FHS) have been maintained. Source: Prevailing POM Filename: “Project Operations Manual (POM) June 2024 Revision – Version 12” Note on “Funds Source”: - added to requirements for fiscal reporting that goes to WB (not reporting for publication) - all governments have the capability to report with funds source - FGS, GSS, HSS, and JSS already report with Funds Source - Important going forward when seeking out EEP Participation Eligibility Criteria 1. The Participation Eligibility Criteria (PEC) are a set of measures that both FGS and FMSs must meet to continue benefiting from each project subcomponent. The PEC were established to promote basic system strengthening including inter-governmental relations, fiscal transparency, and basic payroll and PFM controls. The PEC may be revised as part of the Annual Review. The PEC on women’s inclusion is to be considered in the review process of the PEC. 2. Meeting the eligibility criteria is a pre-condition for financing for expenditures incurred by governments. 3. The information which is required to be published online according to the criteria below should be available during the entire project period. Table 3. FGS and FMS Participation Eligibility Criteria 40 Reform Area Eligibility Criteria 1. FGS: 1.1 Appropriation Act(s) and any Supplementary Appropriation Act(s) published online in Somali or English and shared in Excel with World Bank RCRF Task Team Leader and the Fiscal MA. transparency 1.2 Fiscal reporting for whole of government: • Published online, in Somali or English, at least quarterly, within 45 days of month end (for example, Q2 report for 2022 by 15 August 2022), and • Shared in Excel by the PIU with the World Bank RCRF Task Team Leader and the MA monthly, by the end of the following month (for example, June 2022 report submitted to the World Bank by end of July 2022) For both public reporting and reporting to the World Bank, fiscal data is to present revenues and expenditures compared to the original budget as per the appropriation act schedule, disaggregated as: • Revenues: by month, by object code (six-digit SFMIS CoA code) • Expenditures: by month, by object group code (Six-digit SFMIS CoA code), by Section (five-digit SFMIS Cost Center code, one level lower than MDA). • Data on fiscal transfers, by recipient (for example, FMS), year-to-date by month, by five- digit cost center code, six-digit object code and by fund source. Reform Area Eligibility Criteria 2. FMS: 2.1 Appropriation Act and any Supplementary Appropriation Act(s) published online in Somali or English Fiscal transparency 2.2 Fiscal reporting for each FMS government: • Published online, in Somali or English, quarterly within 45 days of month end (for example, Q1 report for 2022 by 15 May 2022), • Shared in Excel with the FGS (Accountant General and PIU) monthly, by end of following month (for example, January 2022 by end February 2022). The PIU will share FMS reporting (together with FGS reporting) with the World Bank RCRF Task Team Leader and the Monitoring Agent. For public reporting, fiscal data are to present revenues and expenditures compared to the original budget as per the appropriation act schedule. For FMS using BISAN, the report shared is to be disaggregated for • Revenues: by month, by ministry/agency, and by account code (six-digit BISAN CoA code, for example, account code 114203 ‘Property Tax’) • Expenditures: by month, by account code (six-digit BISAN CoA code identifying the nature of the expenditure), by ministry/agency (two-digit BISAN CoA code) 41 For PUNTLAND, the report shared is to be disaggregated for • Revenues: by month, by six-digit PFMIS CoA code identifying the nature of the revenue, for example, 114034 ‘Airport landing fees’ • Expenditures: by month, by object group code (six-digit SFMIS CoA code identifying the nature of the expenditure), by ministry/agency (six-digit CoA organization code, for example, 010003 ‘MoF) For reporting to FGS fiscal data are to present revenues and expenditures compared to the original budget as per the appropriation act schedule. For FMS using BISAN, the report shared is to be disaggregated for • Revenues: by month, by ministry/agency, and by account code (six-digit BISAN CoA code, for example, account code 114203 ‘Property Tax’), by funds source • Expenditures: by month, by account code (six-digit BISAN CoA code identifying the nature of the expenditure), by ministry/agency (two-digit BISAN CoA code), by funds source For PUNTLAND, the report shared is to be disaggregated for • Revenues: by month, by six-digit PFMIS CoA code identifying the nature of the revenue, for example, 114034 ‘Airport landing fees’, by funds source • Expenditures: by month, by object group code (six-digit SFMIS CoA code identifying the nature of the expenditure), by ministry/agency (six-digit CoA organization code, for example, 010003 ‘MoF), by funds source Concurrently with submission of monthly fiscal reports, the RCRF Project Coordinator will report the last paid nominal salary month for each RCRF-funded expenditure stream to the World Bank RCRF Task Team Leader. 2.3 Appropriations to be sufficient to fund at least seven civil service posts for senior officials in both the MoE and MoH [7 positions x USD 650 per month x 12 months = USD 54, 600. Reform Area Eligibility Criteria 3. Eligible expenditure 3.1 For expenditures that are to contribute to the EEP submit documentation as program detailed in Annex 4 of the POM, “Documentation requirements to evidence eligible costs”, and a listing of the cost to be monitored using the format of a SOE: • For FGS: to the World Bank appointed Monitoring Agent • For FMS, to the FGS and onward to the World Bank appointed Monitoring Agent Quarterly, in January, April, July, and October for immediately preceding calendar quarter. 42 Reform Area Social Sector Criteria 4.3: Monitoring system for reporting of FHW/FHS activities The community health coordinator will prepare, and the RCRF Coordination Unit will share with the World Bank task team, reports that present the following, for each FMS and for the FGS separately: • The number of FHWs using mobile technology for data gathering and reporting, 4 Social sector by month, for the period from the start of FHW service delivery to one month before the reporting deadline • The manner in which data gathered are compiled, analyzed, and reported on • Plans in place for the use of smartphones or other technology for monitoring and reporting on FHW/FHS activities • Challenges encountered and further actions to be taken. Reports will be semiannual and are to be submitted each year by January 31 and July 31. Reform Area Administrative Criteria 5.1 The RCRF coordinator to provide reconciliations from RCRF III inception to date for DA-A and DA-B as at each 30 June and 31 December by the end of the first month following each 30 June and 31 December. The DA-B reconciliation is to be supported by FMS PA reconciliations from the inception of RCRF III. The EAFS head in each FMS will provide reconciliations from RCRF III inception to date for their respective project accounts and SOEs as of 30 June and 31 December within 10 days after each of 30 June and 31 and 10 January. 5. Administration The reconciliation for: • each project account is to be accompanied by bank statements for each project account that include all transactions to the date of the reconciliation, • DA-B is to be accompanied by the DA-B and all project bank statements that in include all transactions to the date of the reconciliation. • DA-A is to be accompanied by the DA-A bank statement that in includes all transactions to the date of the reconciliation For each reconciliation, payments that have been made from each account, and yet to be reported on a WA submitted to the World bank, or repaid, are to be listed: 43 1. For draft FGS SOEs prepared, but yet to be submitted to the World Bank, by FGS SOE. These draft SOEs will be included as annexes to the reconciliations (separate worksheets); 2. For unrectified exceptions with financial impact, listed in an annex to the reconciliation (separate worksheet), and 3. All other payments are to be presented at the transaction level and include the payment date, amount, description, and planned action (repay or, if to be claimed in future, reason not claimed to date). New criteria may be piloted without linking them to the disbursement decisions in the first few months to make sure that the criteria are implementable and feasible. Pilot participation eligibility criteria may be developed and agreed upon during annual or mid-term reviews. The performance against the Participation Eligibility Criteria, including any pilots, will be reviewed by the MA at the request of the Project TTL. All documentation submitted to the World Bank is to be sent in copy to the MA. Performance must be acceptable to the RCRF task team. 44 Annex 6 Implementation of PBC 9.5 – Enhancing Budget Transparency Through Timely Publication of Key Budget Documents REQUIREMENT DETAILS 1. Publication of Documents - Draft Appropriations Act (FY26) Must be published. - Executive’s Budget Proposal (FY26) Must be published. - Enacted Budget (FY26) Must be published. - Additional Budget Documents * see the table below. One more of the eight key budget documents (as defined by the Open Budget Survey) must be published on time. 2. Quarterly Reports - Quarterly Tax Performance and Tax Expenditure Reports Must be published by FMS within 45 days after the end of each quarter. 3. Current Fiscal Reporting (RCRF PEC) - Revenue and Expenditures Reporting Must include data by object code, by MDA, and by month cu- mulative YTD. Published quarterly within 45 days after the end of each quarter (starting Q4 2024). 4. Audit Reports - FY24 Audit Report Must be published by September 30th of the following year, with accompanying final audited accounts of the govern- ment. 5. Submission of Fiscal and PFM Data - Current Fiscal Reporting Data must be submitted monthly to FGS Ministry of Finance and onward to the World Bank by the end of the first next month. - Non-Salary (Non-Security) Payments A report must be submitted starting July 2024, listing non-sal- ary payments (non-security) including: Payment voucher ID, Description, Payee, Amount, Date, MDA, Account (six-digit object code). - Workforce Data Report A report indicating the number and USD amount for the workforce, by type of worker and MDA, reported by six-digit object code. If structured data is unavailable, report the USD amount only. Open Budget Survey (OBS) Eight Documents S/N Budget Release Deadline for “Publicly Document purpose and contents Corresponding Document Available” Documents* FMS Document Required 1 Pre-Budget Must be released at least one month Discloses the broad parameters of Budget Statement before the Executive’s Budget Proposal fiscal policies in advance of the Framework 45 is submitted to the legislature for Executive's Budget Proposal; Paper consideration. outlines the government's economic forecast, anticipated revenue, expenditures, and debt. 2 Executive’s Must be publicly released while the Submitted by the executive to the Proposed Budget legislature is still considering it and legislature for approval; details the Budget to the Proposal before approval. A proposal released sources of revenue, the allocations Council of after legislative approval is not to ministries, proposed policy Ministers considered “publicly available.” changes, and other information important for understanding the country's fiscal situation. 3 Enacted Must be released no later than three The budget that has been approved Approved Budget months after the budget is approved by by the legislature. Budget the legislature. 4 Citizens Must be released within the same A simpler and less technical Citizens’ Budget timeframe as the underlying version of the government's Budget Executive’s Budget Proposal or Executive’s Budget Proposal or Enacted Budget. For example, a the Enacted Budget, designed to Citizens Budget for the Executive’s convey key information to the Budget Proposal must be released while public. the legislature is still considering the proposal and before approval. 5 In-Year Must be released no later than three Include information on actual Quarterly Reports months after the reporting period ends. revenues collected, actual Unaudited expenditures made, and debt Budget incurred at different intervals; Segment issued quarterly or monthly. Report 6 Mid-Year Must be released no later than three A comprehensive update on the Budget Review months after the reporting period ends. implementation of the budget as of performance the middle of the fiscal year; report (First includes a Half Year) review of economic assumptions and an updated forecast of budget outcomes. 7 Year-End Must be released no later than 12 Describes the situation of the Annual Report months after the end of the fiscal year government's accounts at the end Financial (the reporting period). of the fiscal year and, ideally, an Statement evaluation of the progress made toward achieving the budget's policy goals. 8 Audit Must be released no later than 18 Issued by the supreme audit Audited Annual Report months after the end of the fiscal year institution, this document Financial (the reporting period). examines the soundness and Report completeness of the government's year-end accounts. 46 Annex 7: Disbursement Status Table: Disbursement Status of P173731 as of March 6, 2025 (all figures in US$) # Description IDA D6580 IDA E1020 IDA E3120 TFB8760 Total 1 Original signed amount 8,000,0000 62,000,000 65,000,000 15,000,000 210,000,000 2 Current signed amount 65,283,816 60,564,504 64,235,080 15,000,000 205,083,400 3=2-1 Unrealized Ex. Loss (2,716,184) (1,435,496) (764,920) - (4,916,600) 4 Disbursed amount 72,144,618 44,639,309 6,663,174 10,000,0000 133,447,102 5=2-4 Funds available (6,860,802) 15,925,194 57,571,905 5,000,000 71,636,297 6 Documented amount 61,231,772 35,839,939 3,596,987 8,789,894 109,458,593 7=4-6 Undocumented amount 10,912,845 8,799,370 3,066,187 1,210,106 23,988,509 47