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: 10 | ARCHIVED on 09-Aug-2019 | ISR38113 | 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 pdoTable 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 Board Approved Revised Project Development Objective (If project is formally restructured) The modified project development objective reads as follows: to improve the public financial management system and accountability in the use of government finances. Components Table 8/9/2019 Page 1 of 7 The World Bank Implementation Status & Results Report Public Financial Management Improvement and Consolidation Project (P133424) 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 Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Substantial Substantial Implementation Status and Key Decisions This Implementation Status and Results Report (ISR) reflects the findings of the implementation support mission conducted between July 8-19, 2019. The mission was pleased to note the continued improvement in project implementation. As a result, the rating on the progress towards achievement of the Project Development Objective (PDO) was rated Satisfactory and Implementation Progress (IP) was maintained at Moderately Satisfactory. The mission was pleasantly surprised by substantial progress in savings generated from public procurement-related reforms, increased customs revenue collection related to the upgrade to ASYCUDA World, successful roll-out of the integrated Financial Management Information System (IFMIS) solution to 56 Ministries, Departments and Agencies (MDAs) (exceeding the project end-target of 54 MDAs), and increased coordination between chiefdoms and local councils (LCs) in the area of internally generated revenues collection and management, which resulted in improved revenue management, projections, and reporting taking place at the local level. The implementation of ASYCUDA World has led to growth in year- to-year customs revenues at about 67 percent during the first six months of implementation. The country's proactive disclosure scheme is now seen as a regional model with Nigeria and Kenya developing their own based on the Sierra Leone template. Finally, as much as US7.7 million in savings has been registered as a result of the establishment of price norms. The implementation of the Integrated Tax Administration System (ITAS) is on- going. Solid progress is also registered in activities carried out by the Non-State Actors (NSAs) Secretariat. The third grant wave of the NSA grant facility is ongoing, with the Secretariat undertaking grantee monitoring; so far, 14 NSAs are benefiting from this grant. The Secretariat has been successful in institutionalizing NSA participation in Public Financial Management (PFM) processes, including in the new PFM Reforms Strategy (2018-2021). Approximately 548 NSA representatives from all over the country have participated in budget discussions to date, which far exceeds the project-end target of 250 members. In addition, the Secretariat has supported constructive policy dialogue between NSAs and ministries, particularly the Ministry of Finance (MoF). It also continues to produce citizens’ budgets, is supporting Audit Service Sierra Leone (ASSL) in the development of simplified audit reports and is now leveraging civil society organizations in developing scorecards for MDAs to track their implementation of audit report recommendations. As at July 5, 2019, all five PDO-level results indicators were on track to achieve their end targets by the close of the project. PDO Indicator 1 has already achieved its project-end target: quarterly budget releases to MDAs occur within two weeks of start of quarter. PDO Indicator 4, timely submission of the audited report of the public accounts to the Legislature is overly ambitious, as the target period of the public accounts is eight months and not six months; this eight months statutory limit, is however, met. In terms of the seven intermediate results indicators, two have already achieved project-end goals. Of the other five, four—if not all five—are on target to achieve their goals by project end. Indicator 3 is dependent on the development of the e-Procurement system which is on-going but likely not to be met, as full development of e-Government Procurement (eGP) requires longer time to implement than available in the project. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance -- Substantial Substantial Macroeconomic -- Substantial Substantial 8/9/2019 Page 2 of 7 The World Bank Implementation Status & Results Report Public Financial Management Improvement and Consolidation Project (P133424) 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 PDO Indicators by Objectives / Outcomes To improve the public financial management system IN00730768 ►Average time of quarterly budget release to MDAs within start of quarter (Weeks, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 5.00 1.00 2.00 2.00 Date 31-Aug-2013 06-Dec-2018 05-Jul-2019 31-Mar-2020 Comments: IN00730767 ►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 44.00 67.30 50.00 Date 31-Aug-2013 06-Dec-2018 05-Jul-2019 31-Mar-2020 IN00730765 ►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 87.00 89.00 95.00 Date 13-Mar-2013 06-Dec-2018 05-Jul-2019 31-Mar-2020 On track to achieve End Target Comments: To improve accountability in the use of government finances IN00730766 ►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) 8/9/2019 Page 3 of 7 The World Bank Implementation Status & Results Report Public Financial Management Improvement and Consolidation Project (P133424) Baseline Actual (Previous) Actual (Current) End Target Value 8.00 6.00 8.00 6.00 Date 31-Aug-2013 06-Dec-2018 05-Jul-2019 31-Mar-2020 By law, the allotted time for submission of the audited report is 8 months. As such, the Audit Service Comments: Sierra Leone (ASSL) is already achieving the limits set. The previous figure was 8 months. IN00730764 ►Non-state actors and citizens participating in annual budget discussions (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 152.00 546.00 250.00 Date 13-Mar-2013 06-Dec-2018 05-Jul-2019 31-Mar-2020 Intermediate Results Indicators by Components Component 1: Strengthening Budget, Financial, Procurement, and Taxation Systems IN00730769 ►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 13.00 21.00 30.00 Date 31-Aug-2013 06-Dec-2018 05-Jul-2019 31-Mar-2020 IN00730771 ►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 56.00 54.00 Date 31-Aug-2013 06-Dec-2018 05-Jul-2019 31-Mar-2020 Target exceeded Comments: IN00730774 ►Ratio between actual primary expenditure and original budgeted primary expenditure (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 121.00 103.00 103.00 107.00 Date 31-Aug-2013 06-Dec-2018 06-Dec-2018 31-Mar-2020 Final 2018 data is expected to be available by the end of July 2019. Still use an old figure as reported in Comments: December 2018. IN00730775 ►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 8/9/2019 Page 4 of 7 The World Bank Implementation Status & Results Report Public Financial Management Improvement and Consolidation Project (P133424) Value No Yes Yes Yes Date 31-Aug-2013 06-Dec-2018 05-Jul-2019 31-Mar-2020 ASYCUDA ++ provides daily report. The two banks installed with DTIS also provide daily revenue reports and two additional banks are on the verge of being linked to DTIS. The answer is, however, partial Yes, as Comments: CS DRMS, BOSL interfaced with IFMIS, appears not relevant within the scope of this project, hence not done. IN00730776 ►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 06-Dec-2018 06-Dec-2018 31-Mar-2020 The system is yet to be established Comments: IN00732780 Percentage of trainees female (Percentage, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 50.00 Date 31-Jul-2019 -- 31-Jul-2019 31-Mar-2020 Component 2: Improving PFM Oversight and Accountability Systems IN00730770 ►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 30.00 32.00 50.00 Date 31-Aug-2013 06-Dec-2017 05-Jul-2019 31-Mar-2020 IN00730772 ►Coverage of internal audit (as % of total expenditures) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 10.00 88.00 86.40 65.00 Date 27-Jun-2017 06-Dec-2018 05-Jul-2019 31-Mar-2020 Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed 8/9/2019 Page 5 of 7 The World Bank Implementation Status & Results Report Public Financial Management Improvement and Consolidation Project (P133424) P133424 IDA-53500 Effective USD 12.00 12.00 0.00 10.14 1.05 91% P133424 IDA-60780 Effective USD 10.00 10.00 0.00 2.51 7.68 25% P133424 TF-17201 Closed USD 4.60 4.60 0.00 4.60 0.00 100% Key Dates (by loan) 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 8/9/2019 Page 6 of 7 The World Bank Implementation Status & Results Report Public Financial Management Improvement and Consolidation Project (P133424) 8/9/2019 Page 7 of 7