The World Bank Report No: ISR10791 Implementation Status & Results Afghanistan Public Financial Management Reform II (P120427) Public Disclosure Copy Operation Name: Public Financial Management Reform II (P120427) Project Stage: Implementation Seq.No: 4 Status: ARCHIVED Archive Date: 24-Jun-2013 Country: Afghanistan Approval FY: 2011 Product Line: Recipient Executed Activities Region: SOUTH ASIA Lending Instrument: Technical Assistance Loan Implementing Agency(ies): Key Dates Board Approval Date 23-Jun-2011 Original Closing Date 31-Dec-2014 Planned Mid Term Review Date Last Archived ISR Date 24-Dec-2012 Effectiveness Date 09-Aug-2011 Revised Closing Date 31-Dec-2014 Actual Mid Term Review Date Project Development Objectives Project Development Objective (from Project Appraisal Document) The proposed PDO is to strengthen public financial management through effective procurement, treasury and audit structures and systems in line with sound financial management standards of monitoring, reporting and control. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Reform Management 2.95 Procurement Reform 21.47 Audit Reform and Performance 24.70 Financial Management Reform 23.88 Overall Ratings Public Disclosure Copy Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Moderate Moderate Implementation Status Overview Moderately satisfactory Locations Page 1 of 5 The World Bank Report No: ISR10791 No Location data has been entered Results Public Disclosure Copy Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target PEFA Ratings for internal audit (P-21) improve Number Value 2.00 2.00 3.00 to B (3) . Date 01-Sep-2011 30-Nov-2012 31-Dec-2014 Comments Good progress in MOF; 10 line ministries have had revenue operations reviewed. Donors shift 20% of off-budget ODA to on- Percentage Value 0.00 5.00 20.00 budget Date 01-Sep-2011 28-May-2013 31-Dec-2014 Comments The figure above is inferred from the increase in donor contributions to ARTF reflected above. PEFA ratings for external audit (P26) improve Number Value 2.00 2.50 3.00 to B (3) Date 01-Sep-2011 28-May-2013 31-Dec-2014 Comments Based on PEFA Update 2013 - draft. % of of procurement done by LM using stand- Percentage Value 0.00 44.00 50.00 alone procurment Date 01-Sep-2011 28-May-2013 31-Dec-2014 Comments 6 LM are fully certified and 2 have specific types of procurement certified.The 6 full are MEd, MAIL, MPH, MOLSA,MEW, M Urban, represent 40 % of civilian expenditure. Public Disclosure Copy Number of functions carried out by regular Number Value 0.00 15.00 20.00 ministry staff Date 01-Sep-2011 28-May-2013 01-Sep-2011 Comments PPU tashkeel established and 15 out of 30 positions have been filled. Intermediate Results Indicators Page 2 of 5 The World Bank Report No: ISR10791 Indicator Name Core Unit of Measure Baseline Current End Target No of Procurement units of LMs and provincial Number Value 7.00 13.00 61.00 offices restructured Date 01-Sep-2011 30-Nov-2012 31-Dec-2014 Public Disclosure Copy Comments In line with plan; 13 done and 8 more for SY 1391. No of staff completing procurement training Number Value 0.00 1013.00 1800.00 and accredited. Date 01-Sep-2011 30-Nov-2012 31-Dec-2014 Comments In line with plan; new arrangements for Kabul required. No of HR staff trained Number Value 0.00 90.00 75.00 Date 01-Sep-2011 30-Nov-2012 31-Dec-2014 Comments good progress on HR training. LM PFM assessment Text Value 2 assessments underway 14 assessments completed Date 01-Sep-2011 30-Nov-2012 31-Dec-2014 Comments in line with plan; completed. Internal audit - no of audits evaluated as done Text Value 4 34 to acceptable std Date 01-Sep-2011 30-Nov-2012 31-Dec-2014 Comments MOF audit are done to std. LM audits now face restrictions re change in Art 61. External audit - no done to ISA Text Value Just WB grant audits All WB grant audits and 9 regulatory audits Date 01-Sep-2011 30-Nov-2012 31-Dec-2014 Comments grant audits all expected by Dec 31. Other work by CAO not done to std. Public Disclosure Copy Timeliness, quality of in-year execution reports Text Value 30 days from month end 14 days Date 01-Sep-2011 30-Nov-2012 31-Dec-2014 Comments Treasury continues to improve timeliness but maintenance of Web site was not kept up so publishing was late. Freebalance V 7 implemented Text Value not implemented implemented for all sites Date 01-Sep-2011 30-Nov-2012 22-Mar-2013 Page 3 of 5 The World Bank Report No: ISR10791 Comments Treasury agree to run test script to determine if FB 7 will support provincial on-line operations. Public Disclosure Copy Legal Framework for Accounting Profession is Text Value no legal or oversight Legal framework agreed and established framework training underway Date 01-Sep-2011 30-Nov-2012 31-Dec-2014 Comments Unit is now working to establish National Steering Committee. Timeliness and quality of audited statements to Text Value Sept 22 just budget execution Sept 22 budget execution and Parliament IPSAS compliant Financials Date 01-Sep-2011 30-Nov-2012 31-Dec-2014 Comments Report to Parliament sent on time but not done to any acceptable std. Disaster recovery plan and testing Text Value no plan in place plan in place and tested Date 01-Sep-2011 30-Nov-2012 31-Dec-2014 Comments Plan still not developed but cold site established. Internal Audit - no of staff trained Number Value 112.00 120.00 360.00 Date 01-Sep-2011 30-Nov-2012 31-Dec-2014 Comments All staff participating in on- going training. Data on Financial Performance (as of 28-May-2013) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P120427 TF-10024 Effective 09-Aug-2011 09-Aug-2011 09-Aug-2011 31-Dec-2014 31-Dec-2014 Public Disclosure Copy Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P120427 TF-10024 Effective USD 73.00 73.00 0.00 27.58 45.42 38.00 Disbursement Graph Page 4 of 5 The World Bank Report No: ISR10791 Public Disclosure Copy Key Decisions Regarding Implementation Extension of Closing Date. Approval of US $13 million of funding of the project proposal was delayed to May 27, 2012. Two activities were to be funded by these funds: the line ministry audit support (SAO) and the Professional Accounting Association support (MOF). These are now a year 18 months behind schedule. It is therefore necessary assess viability and either restructure or extend the project closing date to December 31, 2015. Internal Audit. Progress in internal audit coverage as initially targeted is affected by amendment to PEFM Law Art 61 limiting MOF IA Dept purview to MOF. To ensure progress on the PDO and the PFM Roadmap, IA of MOF will redirect resources under the component to build independent capacity in five key line ministries this also implies some delay in advance toward PDOs. External Audit. New audit law has been enacted and new framework will support improved reporting and adherence to ISAs. Sourcing of TA for compliance audits is 18 months behind schedule. Restructuring History Public Disclosure Copy There has been no restructuring to date. Related Projects There are no related projects. Page 5 of 5