The World Bank Report No: ISR8248 Implementation Status & Results Senegal Public Financial Management Strengthening Technical Assistance Project (P122476) Public Disclosure Copy Operation Name: Public Financial Management Strengthening Technical Project Stage: Implementation Seq.No: 2 Status: ARCHIVED Archive Date: 01-Jan-2013 Assistance Project (P122476) Country: Senegal Approval FY: 2011 Product Line: IBRD/IDA Region: AFRICA Lending Instrument: Technical Assistance Loan Implementing Agency(ies): Key Dates Board Approval Date 26-Apr-2011 Original Closing Date 30-Jun-2015 Planned Mid Term Review Date 09-Dec-2013 Last Archived ISR Date 11-Mar-2012 Effectiveness Date 22-Sep-2011 Revised Closing Date 30-Jun-2015 Actual Mid Term Review Date Project Development Objectives Project Development Objective (from Project Appraisal Document) The PDO is to enhance the credibility, transparency, and accountability in the management and use of central government finances. The project aims to support the modernization of the Public Financial Management system in Senegal. It includes four components: (1) Strengthening Fiscal Policies and Planning; (2) Improving Budget Execution Processes; (3) Strengthening the capacity of external audit and legislative oversight; and (4) Project Management. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Component 1: Strengthening Fiscal Policies and Planning 3.50 Component 2: Improving Budget Execution and Reporting Processes 8.00 Component 3: Strengthening the Capacity of External Audit and Legislative Oversight 2.50 Component 4: Project Management 1.00 Public Disclosure Copy Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Substantial Substantial Implementation Status Overview Overall implementation progress of the project is satisfactory despite a slight delay due to the elections and the leadership changes in the Ministry of economy and finance. The National PFM Steering Committee met in April 26, 2012 to approve the 2012 annual budget plans and activities. Overall implementation of the 2012 budget plans and activities is also Page 1 of 5 The World Bank Report No: ISR8248 satisfactory. The December 2012 supervision mission as well as regular interactions with the PFM Reform Secretariat and the beneficiaries indicate that the following key activities are being implemented satisfactorily: (i) development and implementation of a framework for the assessment of the economic viability of public investment projects; (ii) development of an implementation plan of the WAEMU Directives and appropriate Terms Of References, including administrative and organizational changes; ; (iii) assessment of public agencies; (iv) development of a capacity building strategy taking into account the need to mainstream these efforts in coordination with public training institutions; and (v) Technical assistance Public Disclosure Copy study of the specific requirements for systems enhancement and interfacing of the 6 core PFM information systems, including the upgrading needs of ASTER and SIGFIP as well as the interfacing or integration of the payroll module with the proposed pensions’ module. The selection processes of the consultants to conduct these studies are being finalized and their results will be available early 2013. In addition, the new Minister of economy and finance has expressed a strong interest in reorganizing his department and acquiring an integrated financial management system in the medium term. To address these new requests, the PFM Reform Secretariat is in process of selecting two consultancy firms. These firms are expected to produce their recommendations in the first half of 2013. The project will finance the actions related to the reorganization of the Ministry of finance. However, the development of an IFMIS is outside the scope of the current project and may result in additional financing for FY14 if implementation progress of the current project is satisfactory. Moreover, Cour des Comptes's 2012 action plan has been been satisfactorily implemented. The IT equipment of Cour des Comptes was completed. The project also funded several key actions, including the review of the regional Treasury accounts and on the job training of Cour des Comptes in environmental audit. On the policy front, the new organic law of Cour des Comptes has been approved by the council of minister and is being expected to be reviewed by the parliament in its next session. However, change management activities will be recommended for Cour des Comptes given the upcoming changes in its leadership, including the retirement of the President and two other senior members of his team. The December and June 2012 missions and regular interactions with the PFM Reform Secretariat indicate, however, that the implementation progress of Sub-component 2.3 (Strengthening Internal Audit Processes) is somewhat slow. On internal audit, the draft TORs of the internal audit strategy, including a risk based approach, have been developed only recently and with the Bank’s support, showing a lack of ownership and commitment from the General Inspectorate of the State (IGE). The previous attempts to organize a retreat with internal audit institutions did not work as planned and the team is trying to schedule a high level forum on risk based auditing. This forum is scheduled for January 2013 and will aim at getting policy markers’ buy-in to develop the strategy. It should be noted, however, that the General Inspectorate of Finance (IGF) is very committed to the project, and has developed key TORs such as the use of computer- aided auditing techniques (CAATs) and the update of their website. An alternative approach would be to work with IGF to fast track the implementation of component 2.3. Locations Country First Administrative Division Location Planned Actual Senegal Region de Dakar Region de Dakar ✔ ✔ Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target PEFA Indicator PI-2 = Aggregate expenditure Text Value D D+ C out-turn compared to original approved budget Date Public Disclosure Copy 15-Nov-2007 08-Jun-2012 30-Jun-2015 Comments This rating will be updated early 2013 PEFA Indicator PI-21 = Effectiveness of Text Value D C+ C+ internal audit Date 15-Nov-2007 08-Jun-2012 30-Jun-2015 Comments This rating will be updated early 2013 PI-26 = Scope, nature and follow-up of external Text Value D+ D+ C+ audit Date 15-Nov-2007 08-Jun-2012 30-Jun-2015 Page 2 of 5 The World Bank Report No: ISR8248 Comments This rating will be updated early 2013 DPI-3: Debt Management Strategy Text Value D+ D+ B+ Public Disclosure Copy Date 26-Aug-2009 08-Jun-2012 30-Jun-2015 Comments A debt management strategy has been developed and will be attached to the 2013 budget documents. Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Number of Ministries with fully costed sectoral Number Value 0.00 0.00 15.00 strategies Date 25-Apr-2011 08-Jun-2012 30-Jun-2015 Comments Total public debt (CFA francs) in Single Unified Percentage Value 0.00 0.00 100.00 Debt database (disaggregated domestic and Sub Type external) Supplemental Analytical work and other economic studies Number Value 0.00 0.00 5.00 carried out in support of fiscal policies and Date 25-Apr-2011 08-Jun-2012 30-Jun-2015 management Comments Cost economic analysis of major investment Percentage Value 0.00 0.00 100.00 programs (Costs greater than or equal to Date 08-Jun-2012 30-Jun-2015 XOF250 millions) are conducted Comments The consultant to develop the framework has been selected. This indicator is expected to improved by the second half of 2013. Legal framework for public financial Yes/No Value No No Yes management revised to reflect WAEMU Public Disclosure Copy Date 25-Apr-2011 08-Jun-2012 30-Jun-2015 Directives Comments The consultant has been selected. The recommendations of the study will be available early 2013. The regulations will be updated inthe second half of 2013. Page 3 of 5 The World Bank Report No: ISR8248 Selected budget management information Number Value 0.00 0.00 6.00 systems enhanced through upgrading & Date 25-Apr-2011 08-Jun-2012 30-Jun-2015 interfacing Comments The selection process of the Public Disclosure Copy consultant is ongoing. Internal audit reports presented to and Percentage Value 0.00 0.00 80.00 followed-up by Internal Audit Committees at Date 25-Apr-2011 08-Jun-2012 MDAs Comments The risk based and internal audit strategy will be developed early 2013. Timeline for the completion of the Annual Months Value 36.00 12.00 12.00 external audits of Government Budget Review Date 25-Apr-2011 08-Jun-2012 Act after Fiscal Year end Comments Cour des Comptes has cleared the backlog of audit reports. this indicator will be closely monitored in 2013 to ensure that the subsequent audits are conducted within the legal timeframe, i..e six months after the end of the fiscal year. Data on Financial Performance (as of 13-Aug-2012) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P122476 IDA-49150 Effective 26-Apr-2011 28-Jun-2011 22-Sep-2011 30-Jun-2015 30-Jun-2015 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P122476 IDA-49150 Effective XDR 9.60 9.60 0.00 1.06 8.54 11.00 Public Disclosure Copy Disbursement Graph Page 4 of 5 The World Bank Report No: ISR8248 Public Disclosure Copy Key Decisions Regarding Implementation Overall implementation progress of the project is satisfactory. The PFM Reform Secretariat is following up satisfactorily the implementation of the activities with the beneficiaries. Key recommendations include the need to continue to monitor the implementation of the activities in coordination with the beneficiaries, especially the procurement processes. In addition, the recommendations of the following studies funded by the project should be approved by the steering committee and implemented in 2013: (i) development and implementation of a framework for the assessment of the economic viability of public investment projects; (ii) development of an implementation plan of the WAEMU Directives and appropriate Terms Of References, including administrative and organizational changes; ; (iii) assessment of public agencies; (iv) development of a capacity building strategy taking into account the need to mainstream these efforts in coordination with public training institutions; (v) Technical assistance study of the specific requirements for systems enhancement and interfacing of the 6 core PFM information systems, including the upgrading needs of ASTER and SIGFIP as well as the interfacing or integration of the payroll module with the proposed pensions’ module; and (vi) reorganization of the Ministry of economy and finance. Given the delays in the implementation of sub-component 2.3 (Strengthening Internal Audit Processes), a high level forum on risk based internal audit will be conducted in January 2013 to develop an internal audit strategy and raise awareness on the need to reform internal audit institutions and practices. Restructuring History Public Disclosure Copy There has been no restructuring to date. Related Projects There are no related projects. Page 5 of 5