The World Bank Report No: ISR8699 Implementation Status & Results Azerbaijan Corporate and Public Sector Accountivility Project (P099924) Public Disclosure Copy Operation Name: Corporate and Public Sector Accountivility Project (P099924) Project Stage: Implementation Seq.No: 7 Status: ARCHIVED Archive Date: 11-Dec-2012 Country: Azerbaijan Approval FY: 2008 Product Line: IBRD/IDA Region: EUROPE AND CENTRAL ASIA Lending Instrument: Specific Investment Loan Implementing Agency(ies): Key Dates Board Approval Date 27-Mar-2008 Original Closing Date 31-Dec-2012 Planned Mid Term Review Date 10-Jun-2012 Last Archived ISR Date 24-Dec-2011 Effectiveness Date 19-Dec-2008 Revised Closing Date 31-Dec-2013 Actual Mid Term Review Date 09-Nov-2012 Project Development Objectives Project Development Objective (from Project Appraisal Document) The main Project Development Objective is to strengthen accountability and transparency in financial reporting for the public and corporate sectors in line with international best practices. The key beneficiaries are the Public Interest Entities including State-Owned Enterprises, the Chamber of Accounts (the country's supreme audit institution), the Chamber of Auditors (in its role as the country's auditing services regulator and standard-setter, subject to whatever rebalancing of responsibilities between the Ministry of Finance and the Chamber of Auditors may take place as part of the enhancements introduced when improving the statutory framework), the Ministry of Finance, and accounting and auditing professionals and stakeholders in Azerbaijan. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Component 1: Corporate Sector Accountability 4.06 Component 2: Public Sector Accountability. 9.29 Public Disclosure Copy Component 3: Strengthening accounting, auditing and financial management capacity. 6.30 Overall Ratings 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 Overview Page 1 of 6 The World Bank Report No: ISR8699 The latest progress towards achievement of PDO rating, evaluated following the last mission held in November 2012, is Moderately Satisfactory; overall implementation progress rating is also Moderately Satisfactory. Both ratings have been kept unchanged from the previous ratings. The mission noted significant improvement in the execution of the FARABI contract. Disbursement ratios are 13.3% and 27% for YTD FY 13 and YTD cumulative (since project effectiveness) respectively. Public Disclosure Copy Locations Country First Administrative Division Location Planned Actual Azerbaijan Not Entered Azerbaijan ✔ Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Transparency in the corporate andpublic Text Value ZERO 7 PIEs sectors increased through publishing annual Date 01-Jan-2008 01-Jul-2011 31-Dec-2013 financial statements according to Comments The Government deferred the internationalstandards. implementation - final decision on this to be made by the end of March 2013 . Accountability established within Ministry of Text Value ZERO 50% of the SDP is Finance and Chamber of Accounts to develop implemented a functional and transparent public& private Date 01-Jan-2008 29-Jul-2011 31-Dec-2013 sector external audit as measured by % Comments Trust Fund opened and All activities envisaged under implementation of the rev consulting contract signed the current TORs,except pilot audits ,should be completed by projetc closing date Accounting and auditing profession Text Value 15 100 300 strengthened through the establishment of Date 01-Jan-2008 01-Jul-2011 31-Dec-2013 training and certification programs and Comments Only International accounting Around 250 Public sector education standards in line with international standards. qualification is available now. Certified Accountants and Public Disclosure Copy Around 100 individuals have about 20 full qualified International Accounting accountants in addition to Certification inthe country. around 30 qualified students currently qualified. Intermediate Results Indicators Page 2 of 6 The World Bank Report No: ISR8699 Indicator Name Core Unit of Measure Baseline Current End Target Number of PIEs publishing annual audited Number Value 3.00 7.00 IFRS financial statements within the statutory Date 01-Jul-2011 31-Dec-2013 Public Disclosure Copy deadlines. Comments Number of PIEs have been working to introduce IFRS. The total number will reach around 7 at the end of 2013. Number of staff in MOF Audit Oversight Number Value 0.00 0.00 0.00 Agency trained in new methodology to inspect Date 01-Jul-2011 31-Dec-2012 audit firms Comments The MOF Audit oversight agency will not be created by the end of 2013 as the adoption of new law will take around 1 year. Number of updated IFRS translated, Number Value 20.00 31.00 explanatory notes issued Date 01-Jul-2011 31-Dec-2013 Comments Currently the MOF 2011 IFRS 2012 version will be fully version of IFRS translated translated and adopted by the end of 2013 # of NASBOs issued based on IPSAS and Number Value 41.00 41.00 explanatory notes Date 30-Nov-2012 31-Dec-2013 Comments All NASBOs have been The target has been met prepared and issued. already # of budget organizations publishing annual Number Value 0.00 39.00 NASBO financial statements within the Date 01-Jul-2011 31-Dec-2013 statutory deadlines. Comments All pilot sites for FARABI will be able to publish NASBO compliant FSs by the end of 2013 Public Disclosure Copy # of inspections performed by MOF Audit Number Value 0.00 0.00 Oversight Agency in accordance with new Date 01-Jul-2011 31-Dec-2013 inspection methodology. Comments The adoption of the law on Audit services will take around 1 year and the project will not be able to intervene to this area before its closure Page 3 of 6 The World Bank Report No: ISR8699 # of Key budget organizations and Line Number Value 0.00 39.00 Ministries using unified automatic accounting Date 01-Jul-2011 31-Dec-2013 system. Comments None of the Budget All 39 pilot sites will be using Public Disclosure Copy Institutions comply fully with the system by the end of 2013 current NASBOs % of total budget expenditures audited, using Percentage Value 0.00 0.00 new methodology, by Chamber of Accounts. Date 01-Jul-2011 31-Dec-2013 Comments Although new methodology and Manuals will be ready by the end of 2013, the Chamber will not be able to use them by the end of project closure Number of Audited reports of entities of the Number Value 0.00 0.00 central government submitted to the legislature Date 01-Jul-2011 31-Dec-2013 within 12 months after year end Comments Although new methodology and Manuals will be ready by the end of 2013, the Chamber will not be able to use them by the end of project closure # of accredited training programs (incl. Number Value 0.00 3.00 undergraduate, graduate and vocational Date 01-Jul-2011 31-Dec-2013 training programs) Comments There are now 3 programs All three programs will be though none of them officially accredited by the end of been accredited project closure # of accredited educational facilities offering Number Value 1.00 3.00 training programs Date 01-Jul-2011 31-Dec-2013 Comments ACPATER is offering At least two more facilities will be added by the end of 2013 # of accredited trainers Number Value 11.00 25.00 Public Disclosure Copy Date 01-Jul-2011 31-Dec-2013 Comments 11 trainers have been The number of accredited accredited by Emely Wolf. trainers should increase to 25 by the end of 2013 # of students successfully passing the various Number Value 200.00 1000.00 training programs Date 01-Jul-2011 31-Dec-2013 Comments currently 200 students are The number of Students enrolled into all three should reach 1000 by the end programs of 2013 Page 4 of 6 The World Bank Report No: ISR8699 # of new accounting and audit, tax related Number Value 0.00 5.00 textbooks introduced at higher education Date 01-Jul-2011 31-Dec-2013 institutes. Comments all textbooks have been At least 5 textbooks will need Public Disclosure Copy prepared but none of them to be approved by the MOE have been yet approved by by the end of 2013 the Ministry of Education Data on Financial Performance (as of 31-Oct-2012) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P099924 IDA-44050 Effective 27-Mar-2008 26-Sep-2008 19-Dec-2008 31-Dec-2012 31-Dec-2013 P099924 TF-57849 Effective 26-Sep-2008 26-Sep-2008 19-Dec-2008 31-Dec-2012 31-Dec-2013 P099924 TF-98323 Effective 14-Jun-2011 14-Jun-2011 14-Jun-2011 31-Dec-2012 31-Dec-2012 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P099924 IDA-44050 Effective USD 11.00 11.00 0.00 2.97 7.82 27.00 P099924 TF-57849 Effective USD 3.00 3.00 0.00 0.30 2.70 10.00 P099924 TF-98323 Effective USD 1.87 1.87 0.00 0.20 1.67 11.00 Disbursement Graph Public Disclosure Copy Page 5 of 6 The World Bank Report No: ISR8699 Public Disclosure Copy Key Decisions Regarding Implementation The MOF and World Bank agreed that before March 2013, MOF would review the current relevance of activities designed under Component 1 with a view to proposing a restructuring, if appropriate , to revise the current scope of the component and retain only top priority areas for the government to better meet the PDO. Restructuring History Level two Approved on 23-Sep-2011 Related Projects There are no related projects. Public Disclosure Copy Page 6 of 6