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: 11 | ARCHIVED on 12-Dec-2019 | ISR39807 | 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 12/12/2019 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 Satisfactory Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory 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 November 28- 29 as a follow up to the mission of July 8-19, 2019. As at November 30, 2019, four of five PDO-level indicators had either achieved—or were on track to achieve—their end of project targets. PDO Indicator 4, timely submission of the audited report of the public accounts to the Legislature, was not met (six months). However, the statutory requirement for tabling of the Public Accounts Committee (PAC) report to Parliament, as defined by law, is in fact twelve and not six months, which makes this indicator’s target overly ambitious. In terms of the seven intermediate level indicators, two have already achieved project-end goals (coverage of internal audit and Ministries, Departments and Agencies (MDAs) processing transactions in real-time from the Integrated Financial Management Information System (IFMIS)). Of the other five, four are on track to achieve their end targets by project closure. Substantial Progress since Last Mission: The mission was thoroughly impressed by the accomplishments of the GoSL since the last mission, in July 2019. About 90 percent of the requested actions, agreed at the July 2019 mission, were fully accomplished, 10 percent are close to being accomplished and none are outstanding. Some of the achievements include; the Non-State Actors (NSA) Secretariat is collaborating with the PAC and GoSL integrity institutions to track the implementation of recommendations from audit reports in ten pilot MDAs; ASYCUDA World has been rolled out to Kissy Terminal, the Freetown Airport, SALPOST, and the Gbalamuya Customs Border; and implementation of key ITAS modules— registration, returns processing, payment and accounting modules, for key taxes—is on target for March 2020. Additionally, the Government is at an advanced stage of the establishment of an IFMIS Call Center/Help Desk, and the advanced stage of the recruitment of a Director for the e- Procurement Directorate. .. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance -- Substantial Substantial Macroeconomic -- Substantial Substantial Sector Strategies and Policies -- Moderate Moderate Technical Design of Project or Program -- Moderate Moderate Institutional Capacity for Implementation and Sustainability -- Substantial Substantial 12/12/2019 Page 2 of 7 The World Bank Implementation Status & Results Report Public Financial Management Improvement and Consolidation Project (P133424) 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 IN00780379 ►Average time of quarterly budget release to MDAs within start of quarter (Weeks, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 5.00 2.00 2.00 2.00 Date 31-Aug-2013 05-Jul-2019 29-Nov-2019 31-Mar-2020 Comments: IN00780401 ►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 67.30 67.30 50.00 Date 31-Aug-2013 05-Jul-2019 29-Nov-2019 31-Mar-2020 IN00780403 ►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 89.00 89.00 95.00 Date 13-Mar-2013 05-Jul-2019 29-Nov-2019 31-Mar-2020 On track to achieve End Target Comments: To improve accountability in the use of government finances IN00780380 ►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) Baseline Actual (Previous) Actual (Current) End Target Value 8.00 8.00 8.00 6.00 12/12/2019 Page 3 of 7 The World Bank Implementation Status & Results Report Public Financial Management Improvement and Consolidation Project (P133424) Date 31-Aug-2013 05-Jul-2019 29-Nov-2019 31-Mar-2020 The eight months used by the Audit Service Sierra Leone (ASSL) to submit the audited report to the Legislature is in compliance with the statutory requirement. The team will, therefore, adjust the end target Comments: against this indicator to eight months. IN00780402 ►Non-state actors and citizens participating in annual budget discussions (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 546.00 546.00 250.00 Date 13-Mar-2013 05-Jul-2019 29-Nov-2019 31-Mar-2020 Overall Comments PDO . Intermediate Results Indicators by Components Component 1: Strengthening Budget, Financial, Procurement, and Taxation Systems IN00780404 ►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 21.00 21.00 30.00 Date 31-Aug-2013 05-Jul-2019 29-Nov-2019 31-Mar-2020 IN00780406 ►MDAs processing transactions real-time from IFMIS at respective rolled-out site (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 7.00 56.00 56.00 54.00 Date 31-Aug-2013 05-Jul-2019 29-Nov-2019 31-Mar-2020 Target exceeded Comments: IN00780408 ►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 29-Nov-2019 31-Mar-2020 Final 2019 data is expected to be available after December 31, 2019 when the 2019 financial statements Comments: are available. IN00780409 12/12/2019 Page 4 of 7 The World Bank Implementation Status & Results Report Public Financial Management Improvement and Consolidation Project (P133424) ►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 Value No Yes Yes Yes Date 31-Aug-2013 05-Jul-2019 29-Nov-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. IN00780410 ►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 29-Nov-2019 31-Mar-2020 The available funds for the e-procurement secured through the project additional financing processed in 2017 are deemed adequate to lay the preparatory stage for full e-procurement process. Several key activities against this component could not proceed as there was no e-procurement director. Government was not willing to move forward with training electronic procurement professionals without the Director, to ensure e-procurement system is established to justify the training. Government has just hired a director to proceed with the implementation of the e-procurement processes and roll out training programs as soon as such system is in place. As a result, measuring progress against the gender-related sub- indicator has also not commenced, as the said training has not yet been rolled out. Unless the project is Comments: extended, it is not likely that this training program can commence and that such a large portion of the public procurement professionals can be trained by March 2020 (project’s current closing date). Hence, progress against this indicator is fully dependent on the extension of the project implementation period. IN00780411 Percentage of trainees female (Percentage, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 50.00 Date 31-Jul-2019 31-Jul-2019 29-Nov-2019 31-Mar-2020 Component 2: Improving PFM Oversight and Accountability Systems IN00780405 ►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 32.00 32.00 50.00 Date 31-Aug-2013 05-Jul-2019 29-Nov-2019 31-Mar-2020 IN00780407 ►Coverage of internal audit (as % of total expenditures) (Percentage, Custom) 12/12/2019 Page 5 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 10.00 86.40 86.40 65.00 Date 27-Jun-2017 05-Jul-2019 29-Nov-2019 31-Mar-2020 Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P133424 IDA-53500 Effective USD 12.00 12.00 0.00 10.64 0.55 95% P133424 IDA-60780 Effective USD 10.00 10.00 0.00 3.93 6.19 39% 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 12/12/2019 Page 6 of 7 The World Bank Implementation Status & Results Report Public Financial Management Improvement and Consolidation Project (P133424) Restructuring History There has been no restructuring to date. Related Project(s) P162667-Public Financial Management Improvement and Consolidation -Additional Financing Project 12/12/2019 Page 7 of 7