The World Bank Implementation Status & Results Report St. Kitts and Nevis: Enhanced Public Sector Governance and Efficiency (P129786) St. Kitts and Nevis: Enhanced Public Sector Governance and Efficiency (P129786) LATIN AMERICA AND CARIBBEAN | St. Kitts and Nevis | Public Sector Governance Global Practice | Institutional Development Fund| FY 2012 |Seq No: 3 | ARCHIVED on 05-Jun-2015 | ISR18732 | Implementing Agencies: Ministry of Sustainable Development Key Dates Key Project Dates Board Approval date:30-Mar-2012 Effectiveness Date:06-Feb-2013 Planned Mid Term Review Date:-- Actual Mid-Term Review Date:-- Original Closing Date:17-Oct-2015 Revised Closing Date:17-Oct-2015 Project Development Objectives Project Development Objective (from IDF Proposal) Increasing the quality of expenditures and public sector efficiency and promoting a fiscally sustainable and more equitable system of pay and employment which generates the right incentives to improve public sector performance in St. Kitts and Nevis (SKN). This will be done through building capacity at the Ministry of Finance by working with government teams to: (i) implement measures to rapidly increase the efficiency of personnel expenditures; (ii) align human resource needs and staffing in St. Kitts and Nevis' public service through the implementation of recommendations of functional reviews; and (iii) introduce pay classification and evaluations. Has the Project Development Objective been changed since Board Approval of the Project Objective? No PHRPDODEL Components Name Measures to Rapidly Increase Efficiency in Personnel Expenditures:(Cost $160000.00 M) Aligning human resources needs and staffing with policy initiatives:(Cost $240000.00 M) External Audits:(Cost $15000.00 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Unsatisfactory Overall Implementation Progress (IP) Moderately Unsatisfactory Satisfactory Overall Risk Rating -- Moderate 6/5/2015 Page 1 of 4 The World Bank Implementation Status & Results Report St. Kitts and Nevis: Enhanced Public Sector Governance and Efficiency (P129786) Implementation Status and Key Decisions The World Bank mission visited St. Kitts to assess the progress with implementing the Grant during May 11-13, 2015. The mission concluded with satisfaction that the progress with implementation of activities has been satisfactory. The field work on payroll audit has been completed and the audit report has been practically completed with findings and recommendations for improvement already identified. The functional reviews in three ministries (Education, Health and Public Infrastructure) and Human Resource Management Department have been completed as well, and the said entities were in the process of reviewing the reports and recommendations and preparing observations and comments that would allow the consultancy to finalized the reports. These activities have been closely monitored by the Committee of Permanent Secretaries from the substantive point of view. The recommendations of the reports are expected to be shared with the Prime Minister and Cabinet for endorsement of measures aimed at modernization of human resource management practices in St. Kitts. The project is expected to close on time, on the Grant closing date of October 17, 2015. By that time all ongoing activities, which include the review of the salary structure, development of a payroll assessment tool, and preparation of a draft human resource management modernization policy, are expected to be fully completed. Although presently the Grant disbursement level stands at 34%, both consultancies are expected to submit invoices in the coming weeks. When tasks of consultancies are completed, full disbursement under the two QCBS contracts will bring the implementation level close to 95%. The Ministry of Sustainable Development (MSD), responsible for Grant implementation, was asked to prepare TOR for Project Audit consultancy, which should perform audit of Grant proceeds at the end of the project. With implementation of the project audit, the disbursement of the Grant will be completed. Also the Bank team asked for a preparation of a Grant implementation completion report following the grant closure on October 17, 2015. To enhance the sustainability of project results, the mission has advised the Government that it should prepare and approve a public sector modernization strategy, that would incorporate recommendations on strengthening human resourse management (HRM) in the public service, including the automation of the HRM information, revising and improving salary structure, enhancing the impact of performance appraisal on organizational and individual performance, implementing succession policy for the high administrative positions, aligning institutional management by clarification of roles, responsibilities and accountabilities for performance in the central government, and strengthening payroll administration through an enhanced information system. Given the high share of personnel expenditure in the government expenditure (47.5% in 2014), which is projected to grow further, the Cabinet is advised to decide on measures related to streamlining the public sector employment. This would contribute to the achievement of the Grant development objective of promoting a fiscally sustainable and more equitable system of pay and employment. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance -- -- Moderate Macroeconomic -- -- Substantial Sector Strategies and Policies -- -- Moderate Technical Design of Project or Program -- -- Moderate Institutional Capacity for Implementation and Sustainability -- -- Moderate Fiduciary -- -- Low Environment and Social -- -- Substantial Stakeholders -- -- Moderate Other -- -- -- Overall -- -- Moderate 6/5/2015 Page 2 of 4 The World Bank Implementation Status & Results Report St. Kitts and Nevis: Enhanced Public Sector Governance and Efficiency (P129786) Results Indicators PHINDPDOTBL Government removes ghost workers from payroll(Text,Custom) Baseline Actual (Previous) Actual (Current) End Target There is no rigorous data on government The results of the payroll employment that can indicate that the public Government provide assurance if employment is relatively does not pay No payroll audit to detect public employment is well managed. However, workers who Value fraud has been carried out efficiently managed. A the absence of the HRM are no longer in request for expression information system the public of interest for reduces the efficiency of service consultancy on payroll payroll controls. audit was published Date 16-Jan-2012 06-Jan-2014 13-May-2015 16-Jan-2016 PHINDPDOTBL Service delivery functions are improved in at least two institutions(Text,Custom) Baseline Actual (Previous) Actual (Current) End Target Core functions No analysis of are adequately effectiveness and Functional reviews have staffed in at efficiency of the public been conducted in three least two No functional review to service has been ministries. The Action ministries. analyse how to improve conducted. The Plan will have measures Customer Value public sector efficiency has Request for Expression to strengthen reviews been carried out of Interest has been performance in the indicate published to hire a health, education and improved consultancy to conduct public infrastructure functions in at functional reviews. least two institutions Date 16-Jan-2012 06-Jan-2014 14-May-2015 16-Jan-2016 Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P129786 TF-12323 Effective USD 0.42 0.42 0.00 0.14 0.28 34% Key Dates (by loan) 6/5/2015 Page 3 of 4 The World Bank Implementation Status & Results Report St. Kitts and Nevis: Enhanced Public Sector Governance and Efficiency (P129786) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P129786 TF-12323 Effective 17-Oct-2012 17-Oct-2012 06-Feb-2013 17-Oct-2015 17-Oct-2015 Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 6/5/2015 Page 4 of 4