The World Bank Implementation Status & Results Report LS-PFM Reform Support Project (P143197) LS-PFM Reform Support Project (P143197) AFRICA | Lesotho | Governance Global Practice | IBRD/IDA | Investment Project Financing | FY 2014 | Seq No: 9 | ARCHIVED on 28-May-2019 | ISR37263 | Implementing Agencies: Ministry of Finance, Ministry of Finance Key Dates Key Project Dates Bank Approval Date: 06-Feb-2014 Effectiveness Date: 25-Jul-2014 Planned Mid Term Review Date: 08-Apr-2016 Actual Mid-Term Review Date: 24-May-2016 Original Closing Date: 03-Jul-2017 Revised Closing Date: 03-Jun-2019 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The project development objective (PDO) is to improve the quality and timeliness of public financial management information in support of the Government’s PFM Reform Action Plan (PFMRAP) to improve budget execution. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Support for improving the stability and reliability of exisitng IFMIS:(Cost $0.53 M) Support for modernization of IFMIS platform:(Cost $2.94 M) Support for change management, training and project management:(Cost $1.51 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Moderately Unsatisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Unsatisfactory Moderately Satisfactory Overall Risk Rating Substantial Substantial Implementation Status and Key Decisions The upgraded IFMIS went live early in April 2019, to support FY19/20 budget execution. The Epicor software has been ungraded to its latest version, configured and came into production in the timeline agreed during project restructuring. The system runs on new servers (procured through counterpart financing), and, coupled with wide area network improvements supported through the project no significant performance problems have been experienced thus far. More than 1000 end-users have been trained, and equipped with new personal computers to perform their transacting responsibilities in the IFMIS. There has been a slight delay with the processing of April 2019 salaries, because the budget upload from CBMS to IFMIS has been slightly delayed resulting in late budget release required in the IFMIS for payment processing - these, and a few other matters are being addressed to ensure smooth operations. There are still multi-function printers, scanners and receipt printers that will be delivered / dispatched before project closing on 5/28/2019 Page 1 of 8 The World Bank Implementation Status & Results Report LS-PFM Reform Support Project (P143197) June 3, 2019, and when installed new business processes for receipts and payments can become fully operational. Opening balances in the IFMIS still require attention, and will be addressed during the process to close and audit the FY18/19 public accounts. Except for two outstanding key actions, all other key actions previously agreed have been completed. The remaining matters are - (i) Identification and recording of opening balances of all financial assets and liabilities in the upgraded IFMIS, and to agree the approach and process for validation by the Auditor-general. This activity is dependent on the completion of the FY18/19 public accounts, which is due for submission for audit by August 31, 2019. (ii) The implementation of financial control and reporting in the IFMIS over public debt transactions, as operationally managed in CS- DRMS, has not yet been completed. This impacts the completeness and usefulness of IFMIS information for managing the Consolidated Fund. The targets for project development indicators will be met once month-end closures are initiated on the new IFMIS, and public accounts for FY18/19 have been submitted to the Auditor-general by August 31, 2019. The targets for intermediate indicators have also been largely met, except for recording of line ministry revenue transactions - this is not yet happening in the upgraded IFMIS as loading of the revenue budget is outstanding, and receipt printers still need to be delivered and installed. Government has also been advised on steps to take after project closing to improve and sustain the results achieved - these include completion of the work required on opening balances, quarterly publication of IFMIS budget execution information, and development and deployment of dash boards for management. 5/28/2019 Page 2 of 8 The World Bank Implementation Status & Results Report LS-PFM Reform Support Project (P143197) Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance -- Substantial Substantial Macroeconomic -- Substantial Substantial Sector Strategies and Policies -- Moderate Moderate Technical Design of Project or Program -- Moderate Moderate 5/28/2019 Page 3 of 8 The World Bank Implementation Status & Results Report LS-PFM Reform Support Project (P143197) Institutional Capacity for Implementation and Sustainability -- Substantial Substantial Fiduciary -- Moderate Moderate Environment and Social -- Low Low Stakeholders -- Moderate Moderate Other -- -- -- Overall -- Substantial Substantial Results PDO Indicators by Objectives / Outcomes To improve the quality of public financial management information IN00707236 ►1. Improved reliablity of in-year budget execution reports from IFMIS (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target In-year budget execution reports are available in the Steps have been taken upgraded IFMIS. by Government to Reliability of improve the reliability of information in these In-year budget data in the IFMIS, reports are supported execution reports from In-year budget execution including by reconciling the the upgraded IFMIS reports from IFMIS are operationalization of new transactions recorded have no material generally considered not TSA expenditure bank in new TSA revenue concerns regarding to be reliable, due to lack accounts and their and expenditure bank Value data reliability, since of bank accounts reconciliation with the accounts in the month-end closures reconciliations and no CBL, and initiation of upgraded IFMIS with are operational and month-end closing of the month-end closing the transaction detail TSA bank IFMIS. procedures for the IFMIS. recorded by the CBL. reconciliations are In-year budget execution Although month-end done monthly. reports have been instructions have been developed, but are not issued to line yet published on the web. ministries, the closing procedures in the upgraded IFMIS still need to be initiated. Date 30-Nov-2012 23-Nov-2018 22-May-2019 03-Jun-2019 IN00707238 ►3. Stock of expenditure arrears available in IFMIS (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target The upgraded IFMIS provides reports on IFMIS data on the stock invoices recorded but Stock of expenditure There is no IFMIS data of expenditure arrears not yet paid. MoF also arrears is available Value on the stock of will only be available collected data on all online in the upgraded expenditure arrears. when the upgraded outstanding invoices IFMIS. IFMIS goes live. by end of March 2019, and are recording 5/28/2019 Page 4 of 8 The World Bank Implementation Status & Results Report LS-PFM Reform Support Project (P143197) these for payment in the upgraded IFMIS. Date 30-Nov-2012 23-Nov-2018 22-May-2019 03-Jun-2019 IN00707239 ►4. New Treasury Single Account (TSA) bank balances in the IFMIS (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target New TSA recurrent New TSA recurrent and and development New TSA bank development expenditure expenditure bank No new TSA balances accounts are bank accounts are in accounts have been Value are available in the operational and carried operation since October opened at the CBL IFMIS. forward into the 10, 2017, and is being and in the IFMIS. They upgraded IFMIS. reconciled with the CBL. are being reconciled on a monthly basis. Date 30-Nov-2012 23-Nov-2018 22-May-2019 03-Jun-2019 To improve the timeliness of public financial management information IN00707237 ►2. Improved timeliness and completeness of annual financial statements (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Government eradicated the backlog Government eradicated of annual financial the backlog of annual statements, and the financial statements, and consolidated annual Three-year backlog in the consolidated annual financial statements the preparation of annual financial statements for for 2017/2018 were The FY2018/19 annual financial statements - 2017/2018 were submitted within the financial statements for 2008/09, 2009/10, and submitted within the legal legal timeframe to the budgetary central 2010/11. IFMIS data to timeframe to the Office of Office of the Auditor- government under support annual financial Value the Auditor-general. The general. The 2018/19 preparation and statements for budgetary current IFMIS continues annual financial contain data from the central government lacks to lack complete statements are under upgraded IFMIS on all balances for financial balances for financial preparation, for audit financial assets and assets and financial assets and financial submission by 31 financial liabilities. liabilities. liabilities to support August 2019. The annual financial upgraded IFMIS has statements for budgetary not yet been central government. configured to control and report on public debt transactions. Date 30-Nov-2012 23-Nov-2018 22-May-2019 03-Jun-2019 Intermediate Results Indicators by Components Support for improving the stability and reliability of exisitng IFMIS IN00707240 ►3. IFMIS users trained (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target 5/28/2019 Page 5 of 8 The World Bank Implementation Status & Results Report LS-PFM Reform Support Project (P143197) Value 40.00 65.00 90.00 80.00 Date 30-Nov-2012 23-Nov-2018 22-May-2019 03-Jun-2019 IN00707243 ►4. Line ministry revenue transactions not captured in the IFMIS (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target The upgraded IFMIS has been configured Non-tax revenues for line ministries to collected by line Bank reconciliation of issue online receipts. Non-tax revenue ministries are not revenue transactions Transaction transactions are routinely captured in the since 2009 for all key processing has not yet recorded reliably in the Value IFMIS, and there is Ministries have been been initiated, since IFMIS, supported by ineffective monitoring at completed through to end the revenue budget timely bank Treasury to ensure that September 2018. still needs to be reconciliations. this happens. uploaded and receipt printers have not yet been installed. Date 30-Nov-2012 23-Nov-2018 22-May-2019 03-Jun-2019 IN00707245 ►5. Business process review completed (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Business process review Business process Business process Business process review to support configuration review to support review to support to support configuration Value of the new version of configuration of the configuration of the of the new version of IFMIS contracted by not new version of IFMIS new version of IFMIS IFMIS completed. yet started completed. completed Date 23-Jun-2017 23-Nov-2018 22-May-2019 03-Jun-2019 IN00707247 ►9. Initial operational acceptance of the upgraded IFMIS (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target The upgraded IFMIS Initial operational IFMIS upgrade Initial configuration of has been substantially acceptance of the Value contracted but not yet IFMIS financials in configured and is in upgraded IFMIS started process. operation. achieved Date 23-Jun-2017 23-Nov-2018 22-May-2019 03-Jun-2019 Support for modernization of IFMIS platform IN00707241 ►1. Improved wide-area network uptime (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 71.42 98.00 98.00 98.50 Date 30-Nov-2012 23-Nov-2018 22-May-2019 03-Jun-2019 IN00707244 ►2. Improved IFMIS server uptime (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target 5/28/2019 Page 6 of 8 The World Bank Implementation Status & Results Report LS-PFM Reform Support Project (P143197) Value 92.86 98.20 98.20 98.50 Date 30-Nov-2012 23-Nov-2018 22-May-2019 03-Jun-2019 IN00707246 ►6. IFMIS servers upgraded (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Direct contracting of Servers for new The upgraded IFMIS Servers for new servers from STCL Value upgraded version of operates on new upgraded version of approved on October 31, IFMIS not yet procured servers. IFMIS operational 2018. Date 23-Jun-2017 31-Oct-2018 22-May-2019 03-Jun-2019 IN00707248 ►7. End-user equipment upgraded (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Contract for end-user End-user equipment End-user equipment to End-user equipment work stations awarded has been upgraded to Value operate upgraded IFMIS upgraded to work on and first batch of 100 work on the new not yet procured new IFMIS delivered. IFMIS. Date 23-Jun-2017 30-Nov-2018 22-May-2019 03-Jun-2019 Support for change management, training and project management IN00707242 ►8. Change management plan initiated (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Change management Change management Change management and training plan Change management Value and training plan plan not yet developed substantially plan delivered developed and initiated. implemented. Date 23-Jun-2017 23-Nov-2018 22-May-2019 03-Jun-2019 Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P143197 IDA-53550 Effective USD 5.50 5.50 0.00 3.79 1.23 75% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P143197 IDA-53550 Effective 06-Feb-2014 24-Feb-2014 25-Jul-2014 03-Jul-2017 03-Jun-2019 5/28/2019 Page 7 of 8 The World Bank Implementation Status & Results Report LS-PFM Reform Support Project (P143197) Cumulative Disbursements Restructuring History Level 2 Approved on 30-Jun-2017 Related Project(s) There are no related projects. 5/28/2019 Page 8 of 8