Public Disclosure Copy The World Bank Implementation Status & Results Report Public Financial Management Improvement and Consolidation Project (P133424) Public Financial Management Improvement and Consolidation Project (P133424) AFRICA | Sierra Leone | Governance Global Practice | IBRD/IDA | Investment Project Financing | FY 2014 | Seq No: 8 | ARCHIVED on 19-Jul-2018 | ISR31858 | Implementing Agencies: Republic of Sierra Leone, GOVERNMENT OF SIERRA LEONE, MOFED, Government of Sierra Leone Key Dates Key Project Dates Bank Approval Date:27-Nov-2013 Effectiveness Date:19-Sep-2014 Planned Mid Term Review Date:17-Oct-2016 Actual Mid-Term Review Date:17-Oct-2016 Original Closing Date:31-Mar-2018 Revised Closing Date:31-Mar-2020 Project Development Objectives Project Development Objective (from Project Appraisal Document) The project development objective (PDO) is: “to improve budget planning and credibility, financial control and accountability, and legislative and public oversight in the management and use of government finances in Sierra Leone”. Through strengthened institutional capacity for the delivery of effective PFM and oversight, the project will contribute to enhancing fiscal discipline, strategic allocation of resources, and service delivery efficiency. With this objective, a sound PFM system will be established and nurturedunder the proposed project to contribute to poverty reduction as: (i) it serves as a prerequisite for long-term and sustainable poverty reduction, enabling the country to manage its own development; (ii) it helps ensure that budget planning and discipline are compatible with macroeconomic stability, resource allocation is in line with poverty reduction strategies, activities are implemented efficiently, and results are followed up; (iii) national policies are transformed into actions through the PFM system, and services are delivered; and (iv) democratic governance entails democratic control over resources. In order to achieve the PDO, the Project will support the implementation of priority reform actions identified in the GoSL approved PFM Reform Strategy (2014-2017) which was developed under the following key themes: (i) Budget Planning, Comprehensiveness, and Credibility; (ii) Financial Control and Accountability, Service Delivery and Oversight; (iii) Revenue Mobilization; and (iv) Strengthening Local Governance Financial Management through Local Councils for Effective Decentralization. It will establish tangible improvements in budget credibility, coverage, and realism through improvements in macro-fiscal planning and forecasting, budget compilation and comprehensiveness, it will instill improved internal and external controls and accountability processes in expenditure management for enhanced service delivery, it will strengthen revenue collection, accounting and reporting as a basis for improved fiscal management; it will strengthen the capacity of the decentralized service delivery arm of government (the local councils) to plan and account for the resources transferred to them; and it will support the overall governance and management platform for coordinating and monitoring the implementation of not only thePFM reform project but the PFM reform strategy as a whole. The PFM Reform Strategy objectives against each of the themes have beenaccordingly built in the relevant components of the proposed project for efficiency and for the sake of operational implementationof the project. The strategy is anchored on five basic criteria: sequencing of major actions; simplicity and realism; lessons learnedin prior reforms; ownership and sustainability; and partnership and collaboration. Project Beneficiaries: The beneficiaries of theProject will include: the Ministry of Finance and economic Planning (Comptroller and Accountant General’s Department, Budget Bureau, PFM Reforms Unit, Aid and Debt Management Unit, and Macro-Fiscal Analysis Unit), National Revenue Authority, Audit Service of Serra Leone, the Finance and Appropriations Committee and the Public Accounts Committee of Parliament, National Public Procurement Authority, Local Councils. MDAs will also be key stakeholders and beneficiaries of the reforms supported under the project. In addition, the Project will benefit the non-state actors in executing their demand-side oversight responsibilities in the area of PFM. Has the Project Development Objective been changed since Board Approval of the Project Objective? Yes 7/19/2018 Page 1 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Public Financial Management Improvement and Consolidation Project (P133424) Board Approved Revised Project Development Objective (If project is formally restructured)PHRPDODEL The modified project development objective reads as follows: to improve the public financial management system and accountability in the use of government finances. Components Name Component 1: Strengthening Budget, Financial, Procurement, and Taxation Systems:(Cost $24.48 M) Component 2: Improving PFM Oversight and Accountability Systems:(Cost $4.95 M) Component 3: PFM Reform Coordination and Project Management:(Cost $2.28 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO  Moderately Satisfactory  Moderately Satisfactory Overall Implementation Progress (IP)  Moderately Satisfactory  Moderately Satisfactory Overall Risk Rating  Substantial  Substantial Implementation Status and Key Decisions • The Implementation Status and Results Report (ISR) reflects the findings of the mission conducted between June 26-28, 2018. The ratings on the progress towards achievement of the Project Development Objective (PDO) and Implementation Progress (IP) remain Moderately Satisfactory. • At the time of the mission, four of five PDO indicators were on track to achieve their end targets by the close of the project. Although PDO indicators 3 and 5 did not have current data available they too are on track to be achieved). In terms of the seven intermediate indicators, five are likely to be achieved by the end of the project. Indicator 3 is likely to be achieved although no progress has been reported to date due to the fact that scoring is predicated upon the establishment of the Government of Sierra Leone's e-Procurement system. • Integrated Financial Management Information System (IFMIS): Government has recruited the IFMIS Project Manager (PM) who started work in mid-June, 2018. Although the Government was in the process of implementing some of the recommendations outlined in the IFMIS Audit Report and IFMIS strategy, the pace was slow. With availability of an IFMIS PM, the IFMIS implementation setting up the appropriate governance structure, roll-out to the remaining 24 Ministries, Departments and Agencies (MDAs), and IFMIS stabilization are expected to be expedited. • Integrated Tax Administration System (ITAS) at National Revenue Authority (NRA): The ITAS procurement had to be cancelled due to procurement lapses. The tender was reviewed and re-advertised, and the draft evaluation completed by a government team has been cleared and would be submitted to the Bank for comments • The implementation of the ASYCUDA World has commenced and the first assessment to commence the migration from ASYCUDA++ to ASYCUDA World has concluded. United Nations Conference on Trade and Development (UNCTAD) are on the ground to conduct the business process reengineering (BPR) and commence customization. • A Reforms Advisor has been recruited as agreed during the last mission to coordinate both ICT and reforms for the NRA. • Additionally, a contract for infrastructure for revenue system, critical for implementation of the ASYCUDA World, and Revenue Receipt and Reconciliation System has been awarded. • Open/Big Data Non State Actors Oversight • The Secretariat has successfully developed the 2018 citizen's budget as agreed during the last mission. • The Second Wave of the Grant Facility to NSA partners and the media is on-going satisfactorily • Popularization of the Right to Access Information Act commenced successfully. • Open data centers have been opened in the capital and regional offices as expected. 7/19/2018 Page 2 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Public Financial Management Improvement and Consolidation Project (P133424) • Project Management and Coordination • Public Financial Management (PFM) Steering Committees and PFM Technical committees, which were previously non-existent, have been constituted and have started meeting which is a positive development to the PFM engagement in the country. • The mission was satisfied with the 2017 Public Expenditure and Financial Accountability (PEFA) assessment scores, and both the mission and government teams agreed that the project had a positive impact on the PFM performance which helped to the improvement of a number of PEFA indicators • Audit Committees: The Government has successfully reconstituted five Audit Committees in the top five ministries in government expenditure as was advised in the previous mission. The current mission has advised that experience gained be used to escalate the function to another five ministries. 7/19/2018 Page 3 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Public Financial Management Improvement and Consolidation Project (P133424) 7/19/2018 Page 4 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Public Financial Management Improvement and Consolidation Project (P133424) 7/19/2018 Page 5 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Public Financial Management Improvement and Consolidation Project (P133424) Risks Systematic Operations Risk-rating Tool 7/19/2018 Page 6 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Public Financial Management Improvement and Consolidation Project (P133424) 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 Institutional Capacity for Implementation and Sustainability  --  Substantial  Substantial Fiduciary  --  Substantial  Substantial Environment and Social  --  Low  Low Stakeholders  --  Moderate  Moderate Other  --  Substantial  Substantial Overall  --  Substantial  Substantial Results Project Development Objective Indicators PHINDPDOTBL  Average time of quarterly budget release to MDAs within start of quarter (Weeks, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 5.00 2.80 3.00 2.00 Date 31-Aug-2013 31-Oct-2016 27-Jun-2018 31-Mar-2020 Comments According to the PMU, the time dimension of the indicator is quarterly, but budget releases, with the exception of the first half of 2015 (there were two releases for the first half and one release for the second half of 2015) has been on half -yearly basis. This discrepancy between the indicator description and what obtains in practice makes it difficult to update this indicator. For FY 17, only the first half release has been made and it is now certain that the release for the second half of the year will not be made as the year has come to an end and public accounts are closed for the financial year. The release letter to all MDAs for the first half of FY 2017 is dated April 5, 2017 PHINDPDOTBL  Increase in customs revenues paid into the Consolidated Revenue Fund, adjusted for inflation (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 20.00 2.23 44.00 50.00 Date 31-Aug-2013 05-Dec-2017 27-Jun-2018 31-Mar-2020 7/19/2018 Page 7 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Public Financial Management Improvement and Consolidation Project (P133424) PHINDPDOTBL  Percentage of contracts (by value) awarded in the fiscal year through open competitive procurement (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 85.00 85.00 95.00 Date 13-Mar-2013 05-Dec-2017 27-Jun-2018 31-Mar-2020 Comments This figure is to be confirmed as current data is not available PHINDPDOTBL  Timely submission of the audited report of the public accounts to the legislature (in months from submission of the audit report by the Auditor General) (Months, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 8.00 8.00 8.00 6.00 Date 31-Aug-2013 05-Dec-2017 27-Jun-2018 31-Mar-2020 Comments By law, the allotted time for submission of the audited report is nine months. As such, the Audit Service Sierra Leone (ASSL) is already achieving the limits set. PHINDPDOTBL  Non-state actors and citizens participating in annual budget discussions (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 106.00 106.00 250.00 Date 13-Mar-2013 05-Dec-2017 27-Jun-2018 31-Mar-2020 7/19/2018 Page 8 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Public Financial Management Improvement and Consolidation Project (P133424) Comments Current figure to be available after Finance issues budget call circular Overall Comments Intermediate Results Indicators PHINDIRITBL  Coverage of internal audit (as % of total expenditures) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 10.00 -- 77.00 65.00 Date 27-Jun-2017 -- 27-Jun-2018 31-Mar-2020 PHINDIRITBL  Percent of Audit Committee recommendations on quarterly internal audit reports of MDAs that are implemented (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 13.00 30.00 50.00 Date 31-Aug-2013 13-Dec-2017 27-Jun-2018 31-Mar-2020 PHINDIRITBL  Percentage of public procurement professionals within GoSL trained in e-Procurement processes (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 90.00 Date 27-Jun-2017 27-Jun-2017 27-Jun-2017 31-Mar-2020 Comments The system is yet to be established 7/19/2018 Page 9 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Public Financial Management Improvement and Consolidation Project (P133424) PHINDIRITBL Daily report of revenues based on ASYCUDA++, DTIS (or substitute), CS DRMS, BoSL interfaced with IFMIS (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N Y Y Y Date 31-Aug-2013 05-Dec-2017 27-Jun-2018 31-Mar-2020 Comments In the case of the ASYCUDA World, Yes. The DTIS and CS DRMS are not relevant as they are no longer supported by this project. The IFMIS integration with BoSL is relevant but currently not established as other key systems are yet to be established. Therefore, the result is a partial Yes. PHINDIRITBL  30 largest MDA budget heads with annual procurement plans within annual budget ceiling (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 4.00 19.00 19.00 30.00 Date 31-Aug-2013 05-Dec-2017 27-Jun-2018 31-Mar-2020 PHINDIRITBL  MDAs processing transactions real-time from IFMIS at respective rolled-out site (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 7.00 30.00 30.00 54.00 Date 31-Aug-2013 05-Dec-2017 27-Jun-2018 31-Mar-2020 7/19/2018 Page 10 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Public Financial Management Improvement and Consolidation Project (P133424) PHINDIRITBL  Ratio between actual primary expenditure and original budgeted primary expenditure (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 121.00 128.20 94.00 107.00 Date 31-Aug-2013 05-Dec-2017 27-Jun-2018 31-Mar-2020 Comments This actual for Quarter 1 of 2018 PHINDIRITBL  Percentage of trainees female (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 50.00 Date 07-Jul-2017 -- 27-Jun-2018 31-Mar-2020 Comments The system is yet to be established Overall Comments Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P133424 IDA-53500 Effective USD 12.00 12.00 0.00 8.30 2.95 74% P133424 IDA-60780 Effective USD 10.00 10.00 0.00 0.92 9.72 8.6% P133424 TF-17201 Closed USD 4.60 4.60 0.00 4.60 0.00 100% Key Dates (by loan) 7/19/2018 Page 11 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Public Financial Management Improvement and Consolidation Project (P133424) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P133424 IDA-53500 Effective 27-Nov-2013 17-Jan-2014 19-Sep-2014 31-Mar-2018 31-Mar-2020 P133424 IDA-60780 Effective 07-Jun-2017 27-Jul-2017 27-Oct-2017 31-Mar-2020 31-Mar-2020 P133424 TF-17201 Closed 25-Jul-2014 25-Jul-2014 19-Sep-2014 31-Mar-2018 31-Mar-2018 Cumulative Disbursements Restructuring History There has been no restructuring to date. Related Project(s) P162667-Public Financial Management Improvement and Consolidation -Additional Financing Project 7/19/2018 Page 12 of 12 Public Disclosure Copy