Public Disclosure Copy The World Bank Implementation Status & Results Report NP: Strengthening the Office of the Auditor General (P127040) NP: Strengthening the Office of the Auditor General (P127040) SOUTH ASIA | Nepal | Governance Global Practice | Recipient Executed Activities | Specific Investment Loan | FY 2012 | Seq No: 4 | ARCHIVED on 08-Oct-2016 | ISR24005 | Implementing Agencies: Office of the Auditor General of Nepal Key Dates Key Project Dates Bank Approval Date:19-Dec-2011 Effectiveness Date:23-Feb-2012 Original Closing Date:30-Jun-2015 Revised Closing Date:30-Jun-2016 Project Development Objectives Project Development Objective (from Project Appraisal Document) The project development objective (PDO) is to enhance the quality and impact of public sector audit in Nepal Has the Project Development Objective been changed since Board Approval of the Project Objective? No PHRPDODEL Components Name Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO  Moderately Satisfactory  Satisfactory Overall Implementation Progress (IP)  Moderately Satisfactory  Satisfactory Implementation Status and Key Decisions The Project Development Objective (PDO) is to enhance the quality and impact of public sector audit in Nepal and all the activities undertaken under the project support this objective. Despite recent challenges like disastrous earthquakes in April and May 2015, the Office of the Auditor General in Nepal (OAGN) was able to substantially complete all milestones of the project. A comprehensive risk-based financial audit methodology, aligned with the International Standards of Supreme Audit Institutions (ISSAIs), and standard audit working papers were developed and translated in Nepali language. National Audit Management System (NAMS), along with a robust Electronic Working Papers were designed, developed and deployed in OAGN. To further support this system, National Audit Management Information System (NAMS) manuals were developed and 30 officials were trained as trainers, besides providing end-user training to 181 OAGN staff. In 2014 and 2015, 28 pilot financial audits were carried out, along with 10/8/2016 Page 1 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report NP: Strengthening the Office of the Auditor General (P127040) complete quality assurance, and hands-on training to the auditors on the use of Electronic Working Papers (EWPs) in field audits. Target for in- depth performance audits were also met, paving the way for meaningful future audits and better performance accountability. OAGN became one of the pioneers in use of International Organization of Supreme Audit Institutions (INTOSAI) Performance Management Framework. Peer review of OAGN was done by Supreme Audit Institute (SAI) India on the basis of Performance Management Framework (PMF) , leading to dissemination of a comprehensive report and preparation of a Strategic Plan by OAGN. Besides peer review through SAI India, South-South exchange programme was undertaken with number of SAIs including Malaysia and Indonesia for risk based audit practices and use of Information Technology (IT); Philippines on Citizen Participatory Audits; and Pakistan on audit of recovery and rehabilitation. Due to this significant progress, the rating for achievement of PDO is now upgraded from Moderately Satisfactory to Satisfactory (see progress against Revised Results Framework at Annex II). Furthermore, since all project activities have now been completed, the rating for project management is also upgraded from Moderately Satisfactory to Satisfactory. Contract with Cowater, the consulting firm, has been completed in a satisfactory manner and no contractual issues remain, therefore rating for procurement is also upgraded to Satisfactory 10/8/2016 Page 2 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report NP: Strengthening the Office of the Auditor General (P127040) Risks Overall Risk Rating Risk Category Rating at Approval Previous Rating Current Rating Overall  --  --  Moderate Results Project Development Objective Indicators PHINDPDOTBL Financial Audit of Spending Units completed in accordance with ISSAI (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 7.00 7.00 10/8/2016 Page 3 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report NP: Strengthening the Office of the Auditor General (P127040) Date 30-Jun-2012 -- 30-Mar-2016 30-Jun-2016 Comments By March 2016, Financial Statement Audit of 7 entities were completed in accordance with ISSAI framework. Electronic Working Paper and Computer Assisted Audit Techniques were applied by the auditors during the audit engagement. PHINDPDOTBL Financial Audit Spending Units completed in accordance with ISSAI (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 21.00 21.00 Date 30-Jun-2012 -- 30-Mar-2016 30-Jun-2016 Comments By March 2016, Financial Audit of 21 spending units was completed in accordance with ISSAI framework. Additionally in all audits Electronic Working Papers were used to document audit engagement. PHINDPDOTBL Peformance Audit conducted in accordance with ISSAI framework and submitted for transmission to the parliament. (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 6.00 6.00 Date 30-Jun-2012 -- 30-Mar-2016 30-Jun-2016 Comments By June 2016, 6 in-depth Performance Audits were conducted in accordance with ISSAI framework. The Performance Audit Reports of the Health Sector and Kathmandu Valley Road Improvement Project were incorporated in the 51st Annual Report of the Auditor General The report on the LGCDP and Social Security Program is being incorporated in the next 52nd Annual Report of the Auditor General. Remaining three Performance Audit Reports are ready for incorporation in Annual Report of the Auditor General. OAGN also applied techniques of Citizen Participator Audit in conduct of these audits. PHINDPDOTBL Audit observations contained in ISSAI compliant audit reports (pilot audits) acted upon by the executive within 90 days (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 10.00 -- 30.00 30.00 Date 30-Jun-2012 -- 30-Mar-2016 30-Jun-2016 10/8/2016 Page 4 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report NP: Strengthening the Office of the Auditor General (P127040) Comments More than 30% of audit observations contained in ISSAI compliant audit reports (pilot audits) were acted upon by the executive within 90 days Overall Comments Intermediate Results Indicators PHINDIRITBL Office wide audit plan implements risk-based concepts (Note: planning and conduct of all audits are risk based. (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value Partly -- Fully Fully Date 30-Jun-2012 -- 30-Mar-2016 30-Jun-2016 Comments All entities are categorized according to the risk profile which is determined by a set of indicators. NAMS supports risk based profiling of audit entities’ PHINDIRITBL Peer Review assessment using the SAI PFM Framework (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Partly Value -- Fully Fully Date 30-Jun-2012 -- 30-Mar-2016 30-Jun-2016 Comments All entities are categorized according to the risk profile which is determined by a set of indicators. NAMS supports risk based profiling of audit entities’ 10/8/2016 Page 5 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report NP: Strengthening the Office of the Auditor General (P127040) PHINDIRITBL Lessons Learned from current year pilots documented and reflected in revised audit manuals, guides and training material (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Documented Documented and and reflected in Value Nil -- reflected in audit audit manuals, manuals, guides guides Date 30-Jun-2012 -- 30-Mar-2016 30-Jun-2016 Comments After pilot Performance Audits, workshops were held in which auditors shared lessons learnt with other participants. Workshop report was published which documents lessons learned and on the basis of the findings, Performance Audit Manual was updated PHINDIRITBL Audit observations contained in ISSAI compliant audit reports (pilot audits) accepted by the executive with 35 days (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 30.00 -- 50.00 50.00 Date 30-Jun-2012 -- 30-Mar-2016 30-Jun-2016 Comments In collaboration with the demand side project, a number of consultative workshops were arranged with the CSOs. More than 30 CSOs were engaged in consultative process. In addition, a study tour of high ranking officials of OAGN, including Auditor General was arranged to study CPA in the Philippines. As a result of the study tour, CPA is included in the Strategic Plan (2016-2020). PHINDIRITBL AStrategy document prepared with actions for improving relations with Executive, PAC, media and other stake-holders (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Strategy Value Nil -- Prepared and approved document implemented Date 30-Jun-2012 -- 30-Mar-2016 30-Jun-2016 Comments Strategic documents on collaboration with PAC and Communication Strategy developed and partially implemented. 10/8/2016 Page 6 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report NP: Strengthening the Office of the Auditor General (P127040) PHINDIRITBL Computerized databank of audit observations to produce monthly status reports (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Software implemented Software implemented and databank and used in pilot audits Value Nil -- populated for and customized last 2 years databank audit observations Date 30-Jun-2012 -- 30-Mar-2016 30-Jun-2016 Comments Software developed and populated with audit observations of pilot audits. PHINDIRITBL Enhanced Public Participation of CSOs/other stake-holders in the performance audit process (number of participants/CSO at the events. (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 30.00 30.00 Date 30-Jun-2012 -- 30-Mar-2016 30-Jun-2016 Comments In collaboration with the demand side project, a number of consultative workshops were arranged with the CSOs. More than 30 CSOs were engaged in consultative process. In addition, a study tour of high ranking officials of OAGN, including Auditor General was arranged to study CPA in the Philippines. As a result of the study tour, CPA is included in the Strategic Plan (2016-2020). PHINDIRITBL Number of times press meetings were arranged to disseminate the results of performance audits with extensive coverage by media (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 6.00 6.00 Date 30-Jun-2012 -- 30-Mar-2016 30-Jun-2016 Comments Press briefing are done frequently. 10/8/2016 Page 7 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report NP: Strengthening the Office of the Auditor General (P127040) PHINDIRITBL Person days of class-room training in performance audit (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 100.00 -- 300.00 300.00 Date 30-Jun-2012 -- 30-Mar-2016 30-Jun-2016 Comments Three workshops were held in addition to classroom training. 17 officials of OAGN received training in audit of relief and rehabilitation in Pakistan Overall Comments Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P127040 TF-10455 Closed USD 2.30 2.30 0.00 2.24 0.06 97% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P127040 TF-10455 Closed 23-Feb-2012 23-Feb-2012 23-Feb-2012 30-Jun-2015 30-Jun-2016 Cumulative Disbursements 10/8/2016 Page 8 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report NP: Strengthening the Office of the Auditor General (P127040) Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 10/8/2016 Page 9 of 9 Public Disclosure Copy