The World Bank Report No: ISR9753 Implementation Status & Results Kyrgyz Republic Capacity Building in Public Financial Management (P112713) Public Disclosure Copy Operation Name: Capacity Building in Public Financial Management (P112713) Project Stage: Implementation Seq.No: 2 Status: ARCHIVED Archive Date: 08-Apr-2013 Country: Kyrgyz Republic Approval FY: 2009 Product Line: Recipient Executed Activities Region: EUROPE AND CENTRAL ASIA Lending Instrument: Technical Assistance Loan Implementing Agency(ies): Key Dates Board Approval Date 25-Nov-2008 Original Closing Date 30-Jun-2013 Planned Mid Term Review Date Last Archived ISR Date 24-Jun-2012 Effectiveness Date 16-Dec-2009 Revised Closing Date 30-Jun-2013 Actual Mid Term Review Date Project Development Objectives Project Development Objective (from Project Appraisal Document) The objective of the Capacity Building in Public Financial Management (CB-PFM) Project is to assist the Recipient in strengthening the effectiveness, efficiency and accountability of the Public Finance Management (PFM) through strengthening the budget process, the internal audit and control function and the institutional and human capacity of the Recipient's Ministry of Finance (MOF) and thatof other line Ministries of the Recipient. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Strengthening the Budget Process. 0.45 Improving the Medium Term Budget Framework, including the line ministries. 0.26 Internal Audit and Control. 0.38 Capacity Building in PFM. 2.10 Project Management. 0.30 Public Disclosure Copy Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Moderately Unsatisfactory Moderately Unsatisfactory Overall Implementation Progress (IP) Moderately Unsatisfactory Moderately Satisfactory Overall Risk Rating Substantial Implementation Status Overview After a vacancy in the position of Project Manager for most of 2012, a new Project Manager was selected in October who has brought new focus to project implementation. An Page 1 of 6 The World Bank Report No: ISR9753 extensive review of the logical framework, workplan, and training plan is underway to more closely align the project with current priorities and most viable reforms. The Government has requested an extension of the project from its current scheduled ending date of June 30, 2013, to December 31, 2013. However, three of the four components of the project are dependent on full implementation of the TMIS, supported by the GTAC project, and the advisability of extending the trust fund in its current form will be impacted by Public Disclosure Copy the probability that the TMIS will be fully implemented by the end of the year. Locations Country First Administrative Division Location Planned Actual Kyrgyz Republic Bishkek Gorod Bishkek ✔ Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Composition of expenditure out-turn compared Text Value C (2009 PEFA) Score B (Next PEFA to be to original approved budget (PEFA Indicator 2) The composition of actual conducted by the end of the expenditure of the Republican Project completion) Variance Budget varied considerably in expenditure composition from the initial. exceeded 10 % in no more than one of the last three years. Date 16-Dec-2009 04-May-2012 30-Jun-2013 Comments Comprehensiveness of information included in Text Value A (2009 PEFA) Maintaining Score A (next budget documentation (PEFA Indicator 6) Out of 9 elements, the budget PEFA) documentation recent budget documentation includes 7 elements. Only fulfils 7-9 of the 9 information information on financial benchmarks. assets is missing andthe one on previous year’s budget is incomplete. The Public Disclosure Copy budget documentation is not presented in a user- friendly format. Date 16-Dec-2009 04-May-2012 30-Jun-2013 Comments Multi-year perspective in fiscal planning, Text Value C+(2009 PEFA) B (Next PEFA) expenditure policy and budgeting (PEFA The links between the MTBFs Budget process reflected in Indicator 12) of sub-sequent the budget circular is years are weak. amended such that Page 2 of 6 The World Bank Report No: ISR9753 Costed sector strategies exist preparation of the MTBF is for six ministries, closely coordinated with the Budgeting for investment and annual budget formulation recurrent process. Costed sector Public Disclosure Copy expenditures largely remain strategies exist for six separate processes. ministries and several budget organizations. The majority of important investments are selected on the basis of relevant sector strategies and recurrent cost implications in accordance with sector allocations and included in forward budget estimates for the sector. Date 16-Dec-2009 04-May-2012 30-Jun-2013 Comments Effectiveness of internal audit (PEFA Indicator Text Value D(2009 PEFA) C (Next PEFA) 21) No internal audit in the The function is operational for international sense of the at least the most important activity is undertaken central government entities Reports of control and and undertakes some compliance checking are systems review (at least 20% produced irregularly of staff time), Line management is Reports are issued regularly sometimes required to for most government entities, make corrections but senior but may not be submitted management takes no to the ministry of finance and active part in rectifying the SAI. systemic weaknesses. A fair degree of action taken by many managers on major issues but often with delay. Date 16-Dec-2009 30-Jun-2013 Public Disclosure Copy Comments Number of staff trained in core management Text Value Training for PFM is weak. Consistent professional and technical skills in MoF and Line Ministries Very few staff have core annual training plan in place. increases the capacity to deliver effective PFM management and technical At least 20 Management, 50 skills Senior Staff, and 200 other The GoKR has a PFM reform staff trained, with at least 50% strategy (mid-term vision of trainees in each category MTV) which is in early stages being female staff. of implementation. Page 3 of 6 The World Bank Report No: ISR9753 Date 16-Dec-2009 04-May-2012 30-Jun-2013 Comments The Law on Main Budget Principles and Text Value Inconsistent budget process. 100% of all spending Public Disclosure Copy relevant regulations are updated to strengthen Disconnect between budget departments use new overall PFM system consistent with policy and implementation regulations and bye laws in international best practice. All spending Budget-related laws and budget preparation and departments use the new regulations regulations need drafting or implementation. updating. Date 16-Dec-2009 04-May-2012 30-Jun-2013 Comments MOF publishes reports (on its website) of draft Text Value Budget execution reports are MOF publishes data on its Draft budgets are published budgets, budget outturns compared to the not undertaken systematically website but is not user friendly on MoF website approved and revised budgets whenever in terms of frequency or MoF reports on budget suchreports are made available to Parliament. content outturns on half yearly basis, Draft budgets are not indicating all expenditure published when submitted to categories, approved Parliament. classifications. Summary information is included in a user-friendly format accompanied by explanation of spending increases not planned in the budget. Date 16-Dec-2009 01-Mar-2013 30-Jun-2013 Comments Expenditure classification used in MTBF is Text Value MTBF includes forecast MTBF does not yet break Economic classification consistent with the expenditure classification of expenditures for the main 10 down to economic included in the MTBF the annual budget. functions of the budget, but classificaiton for the outyears there is no data for economic for pilot ministries classification (PEFA2009, PI 12 (i)) Date 16-Dec-2009 01-Mar-2013 30-Jun-2013 Public Disclosure Copy Comments Review of the scope of all major systems of Text Value No comprehensive analysis or No comprehensive analysis of Relevant and up to date internal control in public bodies and agencies description of the public internal controls instructions on development of KR which clarify the formal responsibility, bodies and agencies of KR' the internal control for public processes, structure and format of instructions. internal control system on bodies and agencies of KR PFM. are determined and adopted by Government. Date 16-Dec-2009 01-Mar-2013 30-Jun-2013 Comments Page 4 of 6 The World Bank Report No: ISR9753 Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Budget Code is prepared which will include the Text Value First Draft prepared in June/ Budget Code sumbitted to Final draft of the Budget Code Public Disclosure Copy MTBF proceedure including the regulations July 2012 Parliament but is likely to be to be presented to the related to sectoral ceilings. revised. Parliament for approval Date 30-Jun-2012 01-Mar-2013 Comments Data on Financial Performance (as of 05-Nov-2012) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P112713 TF-95472 Effective 16-Dec-2009 16-Dec-2009 16-Dec-2009 30-Jun-2013 30-Jun-2013 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P112713 TF-95472 Effective USD 4.56 7.49 0.00 2.19 5.30 29.00 Disbursement Graph Public Disclosure Copy Key Decisions Regarding Implementation Consideration is in process of the Government's request to extend the project to December 31, 2014. Page 5 of 6 The World Bank Report No: ISR9753 Restructuring History There has been no restructuring to date. Public Disclosure Copy Related Projects There are no related projects. Public Disclosure Copy Page 6 of 6