The World Bank Report No: ISR14349 Implementation Status & Results Comoros Economic Governance Technical (P102376) Public Disclosure Copy Operation Name: Economic Governance Technical (P102376) Project Stage: Implementation Seq.No: 5 Status: ARCHIVED Archive Date: 10-Jun-2014 Country: Comoros Approval FY: 2011 Product Line: IBRD/IDA Region: AFRICA Lending Instrument: Technical Assistance Loan Implementing Agency(ies): Key Dates Board Approval Date 31-Jan-2011 Original Closing Date 31-Dec-2013 Planned Mid Term Review Date 30-Apr-2012 Last Archived ISR Date 01-Jan-2014 Effectiveness Date 28-Feb-2011 Revised Closing Date 30-Jun-2016 Actual Mid Term Review Date 26-Mar-2012 Project Development Objectives Project Development Objective (from Project Appraisal Document) To increase the efficiency, accountability and transparency of public financial management and to improve the management of civil service human resources and wages. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Component 1: Rationalizing the Public Financial Management ( PFM) institutional framework and 0.80 processes. Component 2: Supporting civil services reforms, including wage bill management 0.17 Demand-driven facility 0.13 Project Management 0.27 Overall Ratings Public Disclosure Copy Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Satisfactory Moderately Satisfactory Overall Risk Rating High High Implementation Status Overview While significant progress toward the achievement of the PDO was made under the auspices of the original project, no new progress toward the PDO was made since the approval of the Additional Financing in November 2013. During the period covered by the ISR, the Project Coordination Unit (PCU) essentially focused its efforts on meeting the effectiveness conditions to access the US$ 3.5 Million additional financing. Nonetheless, the government remains committed to public financial management reforms with the adoption and the Page 1 of 6 The World Bank Report No: ISR14349 publication of three important Decrees: (i) on the revision of budget classification, (ii) the adoption of an administrative and financial manual; (iii) and the employment of administration and finance directors in December 2013. At the same time, little progress has been recorded towards the fulfillment of the organic framework due to delays in the implementation of key recommendations related to the HRMIS (known under the acronym GISE) and to an unstable institutional environment. Public Disclosure Copy Locations No Location data has been entered Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target The composition of budget expenditure Percentage Value deviates from the original budget by less than Date 31-Dec-2007 30-Apr-2014 30-Jun-2016 5% (PEFA PI-2) Comments Sectoral classification could Sectoral classification not Indicator P-12 is rated at "C+" not be made in the 2007 possible for 2013. PEFA study as the 2013 PEFA PI-2 rated NS information was not available (not assessed) for Islands- Indicator P-12 was rated at "D" Budget execution reports published (on the Text Value P1-10 rated D (2007) P1-10 rated C+ (2013) P1-10 rated B+ web or national media) regularly Date 22-Nov-2010 30-Apr-2014 30-Jun-2016 Comments Budget execution reports are TOFE (Financial Operations produced quarterly but with Table) are accessible to only summary information and public through the new MOF limited distribution Website. The share of civil servants paid through the Percentage Value 0.90 0.89 0.95 automated payroll system is above 90% Date 22-Nov-2010 30-Apr-2014 30-Jun-2016 Comments Payrolls are established Payment of all civil servants, The share of civil servants largely on manual basis with except the army is done paid through the automated limited automated control through the payroll system payroll system is above 95% Public Disclosure Copy mechanisms (GISE). Indicator not updated during the period covered by the ISR. Public access to key sectoral fiscal information Text Value N/A N/A P1-10 rated "B+" improved. Date 12-Nov-2013 30-Apr-2014 30-Jun-2016 Comments Indicator not measured during Sector Budget Reports accessible for the public on Page 2 of 6 The World Bank Report No: ISR14349 the period covered by the the MOF website on a ISR. quarterly basis for Union and Islands Government. Public Disclosure Copy Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target A new Organic Law for PFM prepared for Text Value adoption Date 29-Feb-2012 30-Apr-2014 30-Jun-2015 Comments Existing texts (Organic Law With support of the Project, Law submitted for adoption to on Law of Finance, Decree the new PFM Act n°12-009/ the Parliarment public accounting, AU has been adopted on Classification, Chart of June 21, 2012 and accounts) take no account of promulgated on August 2, Comoros' unique 2012. (treasury decree, etc.) constitutional evolution have also been adopted. New decrees related to reforms of Financial and administrative management under preparation for adoption by the end of the year. Annual budget prepared in timely manner Text Value Belated budget approval by Budget preparation calendar P1-11 rated "B". (PEFA PI-11) Sub Type the legislature or similarly is respected (FY13)- Indicator mandated body. Lack of P-I-11 is rated at "C". Supplemental active participatory involvement of federal and island administrations in the preparation of budget submissions - Indicator P-I-11 was rated at "D+" Public Disclosure Copy Limited use of budgetary adjustements during Text Value Budgetary adjustments are Indicator PI-16 is rated "C". Indicator PI-16 is rated "C+". the FY (PEFA PI-16) Sub Type relatively frequent during th year reflecting a poor Supplemental anticipation of cash flows and inefficient tracking of expenditures during the year- Indicator PI-16 is rated "D" Page 3 of 6 The World Bank Report No: ISR14349 Enhanced computerization of budget Text Value PFM information systems are Indicator not measured during Selection and roll out of management and reporting (Indicator PI-24) Sub Type rudimentary. Indicator PI-24 is the period covered by the accounting module of the rated "D" ISR. applied software publication Supplemental of a monthly four phase Public Disclosure Copy statement by entities and consolidated, consistent with approved budget 45 days after FY period end; Production of the Closed accounts (compte general administration Finances); indicator PI-24 is rated "C" Enhanced efficiency in controls of civil servants Text Value Controls are ad hoc and Indicator not measured during PEFA indicator is rated "C" wage bill accuracy (through cross checks Sub Type manual. There is no the period covered by the across databases, timely updates and internal automated system to detect ISR. Supplemental controls) (PEFA PI-18) errors or abuses. A management tool has been rolled out (with PPF support ) but it is not yet operationalized to issue payroll. PEFA indicator PI-18 was rated "D". Enhanced computerization of budget Text Value P1-24 rated "D+". P1-24 rated "C+". P1-24 rated "B". management and reporting (PEFA P1-24). Date 31-Jul-2013 30-Apr-2014 30-Jun-2016 Comments Selection and roll out of the As per 2013 PEFA Report. accounting module and the applied software. Publication of a monthly four phases Public Disclosure Copy statements by entities are consolidated and consistent with the approved budget 45 days after the end of the fiscal year. Production of the closed accounts (Compte général administration et finance). Page 4 of 6 The World Bank Report No: ISR14349 Publication of public tenders procurement Percentage Value 20.00 20.00 90.00 notice for any public procurement financed by Date 31-Dec-2013 30-Apr-2014 30-Jun-2016 the national budget or by donors according to Comments No progress made during the law No. 11-207/AU. Public Disclosure Copy period covered by the ISR. The ARMP (national procurement agency) remains understaffed undermining itsability to fully perform its mandate. Enhanced efficiency in controls of civil service Text Value P1-18 rated "C". P1-18 rated "C". P1-18 rated "B+". wage bill accuracy (through cross checks Date 31-Jul-2013 30-Apr-2014 30-Jun-2016 accross databases, timely updates and internal Comments Implementation of an unified controls) (PEFA P1-18) data base and new version of GISE (HRMIS) on-going. Delays incurred by the national consultant refusing the transfer the HRMIS source code to Government. A comprehensive strategy for civil service Yes/No Value No No management reform is adopted. Date 22-Nov-2013 30-Apr-2014 Comments Government high level ToRs for the selection of the seminar organized in consultant responsible to September 2013 confirmed support the development of the need for a new vision for the CSR strategy completed civil service reform. with the technical support from the Bank team. Data on Financial Performance (as of 04-Apr-2014) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date Public Disclosure Copy P102376 IDA-H6460 Effective 31-Jan-2011 23-Feb-2011 28-Feb-2011 31-Dec-2013 30-Jun-2016 P102376 IDA-H8870 Effective 12-Nov-2013 21-Dec-2013 20-Feb-2014 30-Jun-2016 30-Jun-2016 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P102376 IDA-H6460 Effective XDR 1.20 1.20 0.00 1.06 0.14 88.00 P102376 IDA-H8870 Effective XDR 2.30 2.30 0.00 0.26 2.04 12.00 Disbursement Graph Page 5 of 6 The World Bank Report No: ISR14349 Public Disclosure Copy Key Decisions Regarding Implementation Recognizing the specific challenges related to the development of an integrated computerized national budget financial management system, the government and the Bank agreed to develop a strategy to help civil servants learn to use the new system. Restructuring History There has been no restructuring to date. Related Projects P144049-Economic Governance TA Project (AF), P144381-Economic Governance Technical Assistance - AF Public Disclosure Copy Page 6 of 6