The World Bank Report No: ISR8680 Implementation Status & Results Timor-Leste Planning and Financial Management Capacity Building Program (P092484) Public Disclosure Copy Operation Name: Planning and Financial Management Capacity Building Project Stage: Implementation Seq.No: 8 Status: ARCHIVED Archive Date: 15-Apr-2013 Program (P092484) Country: Timor-Leste Approval FY: 2006 Product Line: IBRD/IDA Region: EAST ASIA AND PACIFIC Lending Instrument: Technical Assistance Loan Implementing Agency(ies): Key Dates Board Approval Date 21-Mar-2006 Original Closing Date 10-Jul-2011 Planned Mid Term Review Date Last Archived ISR Date 09-Apr-2012 Effectiveness Date 15-Nov-2006 Revised Closing Date 31-Jan-2014 Actual Mid Term Review Date 04-Jun-2010 Project Development Objectives Project Development Objective (from Project Appraisal Document) Capacity in the Ministry of Finance strengthened for prudent, effective and accountable planning and management of public finances to promote growth and poverty reduction. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Strengthening Capacity in the General Directorate of State Finances 7.40 Strengthening Capacity in the General Directorate of Revenue and Customs 3.50 Strengthening Capacity in the General Directorate of Policy Analysis and Research 2.94 Strengthening Capacity in the General Directorate of Corporate Services 6.03 Professional Development Program 2.80 Public Disclosure Copy Program Implementation 2.40 Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Low Low Implementation Status Overview Page 1 of 6 The World Bank Report No: ISR8680 Overall progress on program implementation is satisfactory. The program continues to provide essential support consisting primarily of technical assistance and analytical inputs across the macro, revenue, expenditure and corporate directorates of the Ministry of Finance. A significant achievement against the Project Development Objective was the launch in March 2012 of the Ministry of Finance Strategic Plan 2011-2030, which includes an Institutional Development and Capacity Building Plan directorate by directorate. In State Finances, there has been significant progress in the preparation of the state budget by civil servants; publication of a Citizens Budget; implementation of Financial Management Information Public Disclosure Copy Systems upgrades; introduction of the Transparency Portals; strengthened control of state assets; improved governance of Autonomous Public Agencies; increased support to line ministries; and completion of cash flow and bank reconciliations. In Revenue and Customs, there has been progress in stabilizing core tax administration functions; improving the level of compliance; introducing petroleum tax audits; conducting capital gains tax assessments; and strengthening customs clearance and post-clearance audit. In Policy Analysis and Research there have been improvements in data sources for macro modeling and analysis; continuing work on the Medium Term Fiscal Framework; the first publication of national accounts (2004 - 2010); economic growth auditing based on the national accounts; publication of the Business Activity Survey, Timor-Leste in Figures, and the Census; and amendments to the Petroleum Fund Law. Corporate Services are now implementing the Strategic Plan;conducting a workforce mapping exercise that seeks to identify whether work units have the right staff in the right positions; and upgrading IT systems. The Professional Development Programme (PDP) has successfully placed scholarship students in courses in Adelaide and Jakarta; however the PDP has experienced significant delays in the design and contracting of learning programmes. Project management by the Ministry of Finance has improved substantially over the past twelve months, particularly in resource planning, recruitment of consultants, and reporting. Locations Country First Administrative Division Location Planned Actual Timor-Leste Distrito Dili Dili Timor-Leste Not Entered Democratic Republic of Timor-Leste Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Institutional Development and Capacity Text Value IDCBP implemented in part Part implementation and M&E Building Plan implemented and ongoing needs through MOF reorganization of IDCBP. identified. and merit-based appointment process. Agreed it will be finalised as part of Strategic Plan process to December 2010. Public Disclosure Copy Date 03-Jun-2010 19-Mar-2012 30-Nov-2012 Comments Intermediate Results Indicators Page 2 of 6 The World Bank Report No: ISR8680 Indicator Name Core Unit of Measure Baseline Current End Target Budget with medium-term outlook submitted to Text Value 2010 Budget submitted on Continued timely submission Parliament on time. time as per Budget and of quality budget, and Public Disclosure Copy Financial Management Law. improved medium-term fiscal Strengthen quality of forward forecasts. estimates. Date 03-Jun-2010 19-Mar-2012 30-Nov-2012 Comments Fiscal discipline maintained through reduction Text Value Reduction in non-oil deficit Reduction in non-oil deficit to in the non-oil deficit as a % of GDP. (<100% of non-oil GDP) <80% of non-oil GDP. following moderation in spending growth for 2009 and 2010 State Budgets. Date 03-Jun-2010 19-Mar-2012 30-Nov-2012 Comments Aggregate revenue and expenditure outturn # Text Value Revenue outturn is over 90% Aggregate revenue and 80% of budget in the last two years in 2009, compared to around expenditure outturn at least 75% in 2008. Expenditure 85% of budget in last two outturn in 2009 is close to years. 90%. Date 03-Jun-2010 19-Mar-2012 30-Nov-2012 Comments # Quarterly publication of budget Text Value Reports have been submitted Continued full functionality of execution reports within two months of the end on time to Parliament. Transparency Portal. of the quarter. Date 03-Jun-2010 19-Mar-2012 30-Nov-2012 Comments Daily reconciliation of government bank Text Value Full reconciliation of accounts Government accounts up to accounts using FMIS. 2005-09 ($850mn in receipts date and reconciled in FMIS. and $800mn in payments). Date 03-Jun-2010 19-Mar-2012 30-Nov-2012 Public Disclosure Copy Comments Timely publication of audited annual financial Text Value Annual Audited Accounts for Publication of annual audited accounts. 2008 are published as financial accounts within 30 required though with some days after its presentation to delay because of change in the Prime Minister. auditors Date 03-Jun-2010 19-Mar-2012 30-Nov-2012 Comments Page 3 of 6 The World Bank Report No: ISR8680 Improving results from public perception Text Value In 2010, first survey by Asia Improving results from public surveys, for each Directorate, of efficiency, Foundation shows a poor perception surveys, for each effectiveness, ethics and integrity public perception of Customs, Directorate, of efficiency, slightly better for Revenue effectiveness, ethics and Public Disclosure Copy integrity Date 03-Jun-2010 19-Mar-2012 30-Nov-2012 Comments Increasing domestic tax collections as a % of Text Value In 2009, domestic tax was 9% Increasing domestic tax non-oil GDP of non-oil GDP, an increase collections as a % of non-oil from 8% in 2007 GDP Date 03-Jun-2010 19-Mar-2012 30-Nov-2012 Comments National accounts published by the Statistics Text Value Source data for national Source data for national Directorate and three staff trained as national accounts being established, accounts established; national accounts specialists by July 2011 and efforts under way to accounts published; and three appoint staff. SD have set staff trained. April 2011 to publish national accounts and GDP estimates Date 03-Jun-2010 19-Mar-2012 30-Nov-2012 Comments Statistics Work Plan agreed by MoF and other Text Value Key elements of SWP being Completion of initial targets stakeholders, with implementation plan agreed implemented (HIES, BAS and within the SWP. and funding secured by end-2010 APS). Additional funding secured from other donors. Date 03-Jun-2010 19-Mar-2012 30-Nov-2012 Comments Macroeconomic framework sets annual budget Text Value A macro framework has National staff able to update ceilings starting in 2009, with four staff able to started to set the annual and interpret macro model update and interpret the framework byJuly budget ceilings. The model is and framework. 2011 gradually being updated and refined. At this stage it seems Public Disclosure Copy unlikely that four staff will be able to update and interpret the framework by July 2011 Date 03-Jun-2010 19-Mar-2012 30-Nov-2012 Comments Completion of merit-based appointments Text Value Appointment of Grades A-B More than 75% of positions across MOF and more than 75% are qualified completed. Performance occupied by qualified staff. staff. management system being developed. Page 4 of 6 The World Bank Report No: ISR8680 Date 03-Jun-2010 19-Mar-2012 30-Nov-2012 Comments Establishment and staffing of Internal Audit Unit Text Value No progress to date. Establishment and staffing of Public Disclosure Copy Internal Audit Unit. Date 03-Jun-2010 03-May-2011 30-Nov-2012 Comments Establishment and staffing of Legal Unit Text Value Limited progress to date -- Establishment and staffing of difficulty in finding suitably Legal Unit. qualified staff. The Program has provided important in-line function. Date 03-Jun-2010 19-Mar-2012 30-Nov-2012 Comments Improved project supervision rating on Text Value Improvements in all aspects Satisfactory ratings across all implementation progress, procurement and of program implementation program implementation financial management though more work needed on indicators. FM, M&E, and reporting Date 03-Jun-2010 19-Mar-2012 30-Nov-2012 Comments Data on Financial Performance (as of 12-Mar-2013) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P092484 IDA-H2100 Effective 21-Mar-2006 18-May-2006 15-Nov-2006 10-Jul-2011 31-Jan-2014 P092484 TF-93959 Effective 18-Mar-2009 18-Mar-2009 18-Mar-2009 10-Jul-2011 31-Jan-2014 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed Public Disclosure Copy P092484 IDA-H2100 Effective USD 7.00 7.00 0.00 7.40 0.03 106.00 P092484 TF-93959 Effective USD 9.50 24.00 0.00 21.29 2.71 89.00 Disbursement Graph Page 5 of 6 The World Bank Report No: ISR8680 Public Disclosure Copy Key Decisions Regarding Implementation Following a request from the Minister of Finance, the World Bank agreed to extend the project for fourteen months. The project closing date is now 31 January 2014. Restructuring History Board/AOB Approval on 19-Feb-2010, Level two Approved on 25-May-2011 Related Projects There are no related projects. Public Disclosure Copy Page 6 of 6