Public Disclosure Copy The World Bank Implementation Status & Results Report IT Audit Development in the State Audit Office of Georgia (P152658) IT Audit Development in the State Audit Office of Georgia (P152658) EUROPE AND CENTRAL ASIA | Georgia | Governance Global Practice | Recipient Executed Activities | Investment Project Financing | FY 2015 | Seq No: 4 | ARCHIVED on 17-May-2019 | ISR36994 | Implementing Agencies: State Audit Office of Georgia (SAOG), State Audit Office of Georgia Key Dates Key Project Dates Bank Approval Date:29-Jul-2014 Effectiveness Date:04-Jun-2015 Original Closing Date:04-Feb-2018 Revised Closing Date:30-Jun-2019 Project Development Objectives Project Development Objective (from Project Appraisal Document) Proposed Development Objective(s) are as follows: (i) Increased competence and skills of the IT auditors leading to the improvement of staff capacity; (ii) increased audit coverage. 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  Satisfactory  Satisfactory Overall Implementation Progress (IP)  Satisfactory  Satisfactory Implementation Status and Key Decisions Background and Components Georgia - IT Audit Development in the State Audit Office of Georgia (SAO) Project was signed and countersigned on February 5, 2015. The Grant became effective on June 4, 2015. The project, with a total cost of US$500,000, is financed through the Supreme Audit Institution Capacity Development Fund. The project implementation is being monitored closely and adjustments to the work plan to achieve the development objectives are being made as 5/17/2019 Page 1 of 6 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report IT Audit Development in the State Audit Office of Georgia (P152658) needed. As described in the grant agreement and corresponding Procurement Plan, the project envisages the following components: (1) Development of IT audit Information System at SAO; (2) Capacity Development of SAO IT Audit Staff; and (3) Project Management. Implementation Progress SAOG has successfully implemented a substantial part of the first component and created material and technical base for the IT auditors to achieve operational efficiency and handle existing challenges in the IT Audit field. The second component refers to the Capacity Development of the IT Audit Staff, which represents the cornerstone of the project. The main activity planned under Component 2 is acquisition of technical services to build capacity of IT Auditors. Though, due to nature of SAI audit work, SAOG identified that only Supreme Audit Institutions (SAI) have appropriate experience and capacity to engage in such capacity building activities. As a result, in agreement with the WB, SAOG started negotiations with SAI India and US Government Accountability Office’s Center for Audit Excellence (US GAO)in mid-2015. SAO signed the agreement with the US GAO and their work is completed. The negotiations with SAI India failed due to certain legal and contractual matters that could not be resolved on a timely basis. For that reason, SAO proposed substitute capacity building activities that will serve the Project Development Objectives. The World Bank team monitors the progress on the implementation of the new activity plan for a successful closing. Key Results The following key results were determined at project initiation: (1) to create an enabling environment in SAOG to contribute to increased audit coverage, (2) to develop competencies in SAOG to conduct IT audits and (3) to increase the competence and skills of IT auditors in SAOG. As of the year-end 2018 the following progress is recorded: (1) SAOG's audit coverage increased from 38% baseline in 2014 to 85% in 2018. (2) The number of IT audits conducted on an annual basis by SAOG increased from 0 in 2014 to 16 in 2018 (11 integrated IT audits, 2 independent IT audits assessing IT and information systems of the auditee and 3 internal IT audits consisting of internal information security audits of SAO). (3) The number of internationally certified IT auditors increased from 0 in 2014 to 6 in 2018 (all auditors hold ITIL V3 Foundation Certificate and BS 27001 Lead Auditor / Lead Implementer certifications along with CISA, CISSP, CEH or CISM certificates.) Fiduciary The financial management arrangements of the Project are satisfactory and there are no overdue audit reports. 5/17/2019 Page 2 of 6 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report IT Audit Development in the State Audit Office of Georgia (P152658) 5/17/2019 Page 3 of 6 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report IT Audit Development in the State Audit Office of Georgia (P152658) Risks Overall Risk Rating Risk Category Rating at Approval Previous Rating Current Rating Overall  --  Moderate  Moderate Results Project Development Objective Indicators PHINDPDOTBL Improved efficiency of IT audit work (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Completion of 5 IT audits within public entities with complex IT environment (Social Protection 11 IT audits conducted Fund, E- along with 2 Value No IT audits 3 IT audits conducted. Auction System independent and 3 of Georgia, internal IT audits. Public Procurement Agency, etc.) in accordance with revised IT audit methodology Date 05-Feb-2015 31-Dec-2017 31-Dec-2018 31-Dec-2018 PHINDPDOTBL Increased audit coverage (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 38.00 80.00 85.00 85.00 Date 31-Dec-2014 31-Dec-2017 31-Dec-2018 31-Dec-2018 Overall Comments 5/17/2019 Page 4 of 6 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report IT Audit Development in the State Audit Office of Georgia (P152658) Intermediate Results Indicators PHINDIRITBL Increased audit coverage (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Audit Coverage Value Audit Coverage -27% Audit Coverage - 80% Audit Coverage - 85% - 85% Date 01-Sep-2013 31-Dec-2017 31-Dec-2018 31-Dec-2018 Overall Comments Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P152658 TF-18381 Effective USD 0.50 0.50 0.00 0.43 0.07 86% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P152658 TF-18381 Effective 05-Feb-2015 05-Feb-2015 04-Jun-2015 04-Feb-2018 30-Jun-2019 Cumulative Disbursements 5/17/2019 Page 5 of 6 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report IT Audit Development in the State Audit Office of Georgia (P152658) Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 5/17/2019 Page 6 of 6 Public Disclosure Copy