The World Bank Report No: ISR15058 Implementation Status & Results Liberia The Liberian Institute of Certified Public Accountants (LICPA) (P119435) Public Disclosure Copy Operation Name: The Liberian Institute of Certified Public Accountants (LICPA) Project Stage: Implementation Seq.No: 4 Status: ARCHIVED Archive Date: 22-Jun-2014 (P119435) Country: Liberia Approval FY: 2010 Product Line: Institutional Development Fund Region: AFRICA Lending Instrument: Implementing Agency(ies): Key Dates Board Approval Date 30-Apr-2010 Original Closing Date 06-Dec-2013 Planned Mid Term Review Date Last Archived ISR Date 08-Jun-2013 Effectiveness Date 05-Jul-2011 Revised Closing Date 06-Dec-2014 Actual Mid Term Review Date Project Development Objectives Project Development Objective (from IDF Proposal) The objective of the grant is to transform and empower LICPA by building its capacity to be able to educate, train and regulate the accountancy profession in Liberia. The overall expected outcome is improved transparency and accountability in both the private and public sectors through better financial reporting and oversight arrangements. This will also build trust and confidence in the accountancy profession by the public. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost COMPONENT 1: Institutional Transformation of LICPA 131900.00 COMPONENT 2: Support for implementation of international accounting and auditing standards and 114650.00 training COMPONENT 3: Professionalization of the Accountancy Profession 209100.00 Public Disclosure Copy Professionalization of the Accountancy Profession COMPONENT 4: Project Management and Audit 7500.00 Project Management Overall Ratings Progress towards achievement of PDO Moderately Satisfactory Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Satisfactory Page 1 of 4 The World Bank Report No: ISR15058 Overall Risk Rating Substantial Substantial Public Disclosure Copy Implementation Status Overview Since the selection of the Institute of Chartered Accountants, Ghana (ICAG) as twining partner in April 2013, The LICPA continues to make considerable progress in not just achieving key milestones but also surpassing targets in this project, as well as make other significant gains in establishing itself as a viable institute. Far from the docile and perennially weak institute it was prior to the commencement of the project, LICPA has undergone enormous transformation and has emerged as the recognized body responsible for educating and training professional accountants and regulating the accountancy profession in Liberia. Three of the four outputs in Component 1 of the project have been achieved. These include the development of a Development Action Plan (or strategic plan), guidance on the establishment of a technical department, and such other outputs geared as strengthening the Institute’s administrative capacity as creation of a website, establishment of a local area network (LAN), procurement of computers, printers and copiers, and establishment of a membership database. Considerable progress has been made in achieving the fourth output which is development of a monitoring and enforcement mechanism manual. It is noteworthy that in achieving these outputs, the following targets were surpassed: the number of professional members is currently 43, three more than the project’s target; and guidance has been provided by the twinning partner in establishing a governance structure for the Institute and not just for the establishment of a technical department. All of the continuing professional development (CPD) activities geared toward audit quality assurance in Component 2 have all been started and are in progress. A strategic plan on CPDs has been developed and to date four CPD courses have been conducted at three CPD events with 180 accountants and auditors trained. It is noteworthy that these achievements have also exceeded the projects targets of two CPD events and 100 accountants and auditors trained. An audit practice manual is under development and is expected to be completed on schedule. An audit quality needs assessment has been conducted and appropriate actions have been taken to mitigate challenges observed. These actions have included the deployment of the Private Company Audit System (PCAS) by interested audit firms, conduction of CPD courses in International Standards of Auditing (ISA), International Standards on Quality Control (ISQC), PCAS, and International Financial Reporting Standards (IFRS). Following these interventions, a comprehensive review of all audit firms will be conducted. Again this is expected to surpass the project’s target of performing audit quality review of selected audit firms. Under Component 3, one of the three outputs on the LICPA examination scheme has been completed. This scheme consists of the Accounting Technician Scheme for West Africa (ATSWA) which is administered in Liberia under the auspices of the Accountancy Bodies of West Africa (ABWA), and the professional examination which is the professional examination of the Institute of Chartered Accountants, Ghana (ICAG) administered in Liberia under an MOU between LICPA and ICAG. Over the duration of this project, 167 persons have registered for the ATSWA exams while 343 have registered for the professional examinations. The second output which is the development of study packs for Liberian taxation and public sector accounting is in progress and expected to be completed on schedule. The Institute has surpassed the achievement of the third output in this component which is Liberia PFM professionalization scheme under which it is required to strengthen linkage with the University of Liberia to roll-out the Public Financial Management Staff Capacity Development Initiative (PFM-SCDI) and train government accountants. Under the Syllabi Integration Program (SIP) a sustainable instructor development component has been established. Additionally, in partnership with the Liberia Institute of Public Administration (LIPA) and with funding from UNDP a new initiative has been undertaken to train government accountants, the first batch of 40 is expected to start training on 2 June 2014. Public Disclosure Copy All reporting requirements in Component 4 of the project have been met to date. Over and above achieving and surpassing the milestones of this project, the LICPA has also undertaken a number of initiatives geared at establishing itself as a viable professional entity. These have included the establishment of the SIP, the Liberia Accountancy Training Program (LATP) and the Accountancy Qualification Program (AQP). Under the SIP the syllabi of the Institute’s two credentialing programs are integrated into the undergraduate curricula of participating universities as a mechanism for accelerating the increase in the number of professional accountants and improving the quality of accounting education the country. A pilot of this program has started in earnest at the Stella Maris Polytechnic, and the Adventist University of West Africa (AUWA) and the Cuttington University are poised to commence the pilot in September 2014. In collaboration with LIPA and with funding from USAID-GEMS the LATP has hired three qualified and experienced expatriate to provide tuition in the institute’s capacity building programs, SIP, and AQP. The AQP is a collaborative effort with LIPA, the Civil Service Agency (CSA), and the Ministry of Planning and Economic Affairs (MPEA) and funding from UNDP under which government accountants will become qualified. Page 2 of 4 The World Bank Report No: ISR15058 In addition to these capacity building initiatives, the LICPA is also very actively engaged in regional activities. The Institute is the current president of ABWA and represents West Africa on the board of the Pan African Federation of Accountants (PAFA). It has also taken over the management and administration of the ATSWA examination and will play host to the ATSWA Harmonization Committee in August 2014. Public Disclosure Copy In order to further strengthen it administrative capacity, the LICPA has deployed the Sage 50 Accounting software and implemented a fully electronic accounting system to increase and efficiency. Overall, LICPA has made significant progress in the past year towards compliance with IFAC SMOs on professional training and quality assurance, as well as strengthening its governance arrangements. Locations No Location data has been entered Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Number of Continuous Professional Text Value No CPD events 4 CPD events have been held Two CPD events Development (CPD) events organized by to date LICPA Date 31-Dec-2009 30-May-2013 06-Dec-2013 Comments Number of Professional Accountants registered Number Value 18.00 43.00 40.00 with LICPA Date 06-Dec-2011 30-May-2013 06-Dec-2013 Comments Percentage of audits that meet International Percentage Value 0.00 0.00 75.00 Standards on Auditing (ISA) in three targeted Date 06-Dec-2011 06-Dec-2013 audit firms for Quality Assurance Review Comments No Quality Assurance Review The twining partner will assist mechanism in place with this activity. Public Disclosure Copy Data on Financial Performance (as of 24-Feb-2014) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P119435 TF-97529 Effective 06-Dec-2010 06-Dec-2010 05-Jul-2011 06-Dec-2013 06-Dec-2014 Disbursements Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P119435 TF-97529 Effective USD 0.46 0.46 0.00 0.40 0.06 87.00 Page 3 of 4 The World Bank Report No: ISR15058 Disbursement Graph Public Disclosure Copy Key Decisions Regarding Implementation None Restructuring History There has been no restructuring to date. Related Projects There are no related projects. Public Disclosure Copy Page 4 of 4