Public Disclosure Copy The World Bank Implementation Status & Results Report Strengthening Internal Audit (P159448) Strengthening Internal Audit (P159448) EAST ASIA AND PACIFIC | Indonesia | Governance Global Practice | Recipient Executed Activities | Investment Project Financing | FY 2017 | Seq No: 1 | ARCHIVED on 13-Feb-2018 | ISR31152 | Implementing Agencies: ASOSIASI AUDITOR INTERN PEMERINTAH INDONESIA (AAIPI), ASOSIASI AUDITOR INTERN PEMERINTAH INDONESIA (AAIPI) Key Dates Key Project Dates Bank Approval Date:23-Sep-2016 Effectiveness Date:23-Sep-2016 Original Closing Date:28-Feb-2018 Revised Closing Date:28-Feb-2018 Project Development Objectives Project Development Objective (from Project Appraisal Document) The primary objective of our engagement is to contribute to government's efforts to improve the capacity of the internal audit institutions to progress towards level 3 of IA-CM requirements. Internal Audit Capability Model (IA-CM) is a framework that identifies the fundamentals needed for effective internal auditing in government and the broader public sector. It illustrates the levels and stages through which an intern audit activity can evolve as it defines, implements, measures, controls and improves its processes andpractices. The IA-CM provides a road map for continuous improvement in processes and practices to establish effective internal auditing in an organization. There are 5 capability levels in IA-CM, where level 1 is the lowest with no sustainability and high dependency on individual efforts and level 5 is the inspirational level. Level 3 is where internal audit management and professional practices are uniformly applied and the practice generally conforms to the internal audit standards and an established Quality AssuranceImprovement Program (QAIP) . Level 3 of IA-CM requires advisory services and performance audit to be practiced uniformly and the use of risk based audit plan within the internal audit institutions. To ensure such internal audit professional practice, qualified IA-CM accessors and certified QAIP reviewers should be available to support such transformation. Has the Project Development Objective been changed since Board Approval of the Project Objective? No PHRPDODEL Components Name Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO  --  Satisfactory Overall Implementation Progress (IP)  --  Satisfactory 2/13/2018 Page 1 of 5 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Strengthening Internal Audit (P159448) Implementation Status and Key Decisions Overall project implementation has significantly improved compared to the last supervision. Bank disbursements as of December 31, 2017 is 86% of the total allocated grants while AAIPI has utilized only 72% of the funds advanced by the Bank. The project has sent a request to extend the project closing date from February 28, 2018 to February 28, 2019 to allow for completion of ongoing activities as well as to seek additional financing from donors for activities already approved by the Bank. Component 1: Internal Audit Capacity Enhancement: Three activities under this component were initially approved by the Donors. One Stakeholder Learning Workshop was completed in November 2016 and another one in September 2017. Development of distance learning modules is currently ongoing and expected to complete by end of February 2018., The Capacity Building to Implement Audit Universe and Risk Based Planning is also currently ongoing since October 2017. The Bank team will be seeking approval from the donor Management Committee of the remaining six activities at their forthcoming MC meeting on early March 2018. The team believes there are sufficient funds available in the TF to finance the remaining six activities. Component 2: Piloting use of Technology in Conducting Internal Audit: Computer Aided Audit Techniques (CAAT) has been developed and piloted within the IG MoF. Plans are being made to implement the CAAT in IGs from other ministries. Further development of CAAT to be used by local inspectorates is also being considered. Component 3. Institutional Support and Project Management: Preparation of AAIPI’s strategic plan is currently on going and is expected to be completed by end of February 2018. The Bank team will be seeking approval from the donor Management Committee of the remaining two activities at their forthcoming MC meeting on early March 2018. The team believes that sufficient funds available in the TF to finance the remaining two activities. Risks Overall Risk Rating Risk Category Rating at Approval Previous Rating Current Rating Overall  --  --  Moderate Results Project Development Objective Indicators PHINDPDOTBL Internal audit institutions with IA-CM level 3 (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 1.00 -- 33.00 20.00 Date 05-Aug-2016 -- 31-Dec-2017 31-Aug-2018 2/13/2018 Page 2 of 5 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Strengthening Internal Audit (P159448) PHINDPDOTBL Use of IT for internal audit in MoF (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N -- Y Y Date 29-Aug-2016 -- 31-Dec-2017 28-Feb-2018 PHINDPDOTBL Development and adoption of Strartegic Plan by AAIPI (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N -- N Y Date 05-Aug-2016 -- 09-Feb-2018 28-Feb-2018 Overall Comments Intermediate Results Indicators PHINDIRITBL Adoption of Performance audit guidelines and implementation of these guidelines in selected institutions (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N -- N Y Date 29-Jun-2016 -- 09-Feb-2018 28-Feb-2018 2/13/2018 Page 3 of 5 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Strengthening Internal Audit (P159448) PHINDIRITBL Implementation of Performance Audit Guidelines (Number, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 20.00 Overall Comments Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P159448 TF-A3211 Effective USD 0.66 0.66 0.00 0.56 0.10 85% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P159448 TF-A3211 Effective 23-Sep-2016 23-Sep-2016 23-Sep-2016 28-Feb-2018 28-Feb-2018 Cumulative Disbursements 2/13/2018 Page 4 of 5 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Strengthening Internal Audit (P159448) Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 2/13/2018 Page 5 of 5 Public Disclosure Copy