The World Bank Implementation Status & Results Report Ghana: Public Financial Management Reform Project (P151447) Ghana: Public Financial Management Reform Project (P151447) AFRICA | Ghana | Governance Global Practice | IBRD/IDA | Investment Project Financing | FY 2015 | Seq No: 9 | ARCHIVED on 12-Jun-2019 | ISR37430 | Implementing Agencies: Government of Ghana, Ministry of Finance Key Dates Key Project Dates Bank Approval Date: 15-May-2015 Effectiveness Date: 18-Aug-2015 Planned Mid Term Review Date: 31-Oct-2017 Actual Mid-Term Review Date: 22-Nov-2017 Original Closing Date: 30-Jun-2019 Revised Closing Date: 31-Dec-2020 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The project development objective (PDO) is to improve the budget management, financial control and reporting of the Government of Ghana. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Enhancing Budget Credibility:(Cost $1.72 M) Public Financial Management Systems and Control:(Cost $38.78 M) Reinforcing Financial Oversight and Accountability:(Cost $3.90 M) PFM Reform Coordination and Change Management:(Cost $3.40 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Substantial Substantial Implementation Status and Key Decisions The Ghana Public Financial Management Reform Project (PFMRP) was approved on May 15, 2015 and became effective on August 18, 2015. Implementation has been proceeding successfully and project implementation remains satisfactory. Project progress has significantly picked up after elections such that most indicator annual targets(at both Project Development Objective (PDO) and intermediate level) have been already been met or exceeded. Despite a few slippages, the project is generally on track to achieve its overall development objectives. Since change management and stabilization of the rolled out systems will require more time, and enable implementation of the remaining core project activities, the Government has sought project extension for 18 months which was approved. The project is expected to close on December 31,2020. 6/12/2019 Page 1 of 8 The World Bank Implementation Status & Results Report Ghana: Public Financial Management Reform Project (P151447) A summary of each component ratings and key achievements is outlined below: Component 1: Enhancing Budget Credibility. Planned component activities have significantly delayed during the period during review owing to changes of Budget Director at MOF. It has been agreed to have monthly meetings to review agreed activities to pick up since these are foundational to PFM improvement.. Within the remaining activities, a Budget Charter, Fiscal Strategy and Change Management Strategy have been developed and are at various stages of approval either in Cabinet or Parliament. Training to build the capacity of Ministries, Departments and Agencies(MDAs) to develop costed sector strategies and sector medium term development plans has been undertaken. Public Financial Management(PFM) Regulations accompanying the 2016 PFM Act have also been developed with the assistance of the International Monetary Fund (IMF) and been approved and are in use. Component 2: Public Financial Management Systems and Control. The component continues to make good progress through the usage of virtual private network (VPN) in the core areas that require roll out of the Information Technology (IT) based system. The recent GIFMIS Health Check findings will refocus the team on core recommendations to enhance stabilization of the system. Whilst progress continues to be registered, lack of a government wide GIFMIS strategy and connectivity continues to be a major challenge. This notwithstanding, the roll out of GIFMIS has progressed well coupled with the rollout of the Internally Generated Funds (IGFs), Statutory Funds(SF), Donor Funded Projects (DFPs), and Procure to Pay (P2P) to more MMDAs. The process of implementing core interfaces and integrateion with Total Revenue Integrated Processing System (TRIPS), Ghana Customs Management System (GCMS), e-Monitor, Commonwealth Secretariate Debt Recording and Management System (CS-DRMS) and e-Procurement has been completed. The implementation of e-procurement application is not within the scope of this project but is rather being supported within the Bank-financed e-Transform project. The Human Resource Management Information System (HRMIS) implementation has been undertaken in more than twenty institutions. Whilst the issues of network connectivity through the National Information Technology Agency (NITA) are being systematically addressed, NITA's problems arise from lack of adequate operational budget and small staffing complement to provide the required services. However, there is ongoing work to deal with connectivity aspects of the project. A Treasury Single Account (TSA) strategy has been formulated, approved and is being used to monitor over 6,000 government accounts. TSA work to establish a cash daily monitoring board has started to improve cash management. This has assisted in strengthening improved cash management and forecasting also being supported by complementary activities being financed by the GEMS project. More than 90 percent of Public Procurement Authority (PPA) activities have been implemented. The Government of Ghana(GOG) is determined to transition to International Public Sector Accounting Standards (IPSAS) accrual basis of accounting and financial reporting by 2020. To this end, the State and Economic Cooperation (SECO) has agreed to contribute an amount of USD 3million as an Additional Financing (AF) to this project to assist with the implementation of core activities arising from the Chartered Institute of Public Finance and Accountancy (CIPFA-UK)/GOG Roadmap strategy for Ghana. The AF has become effective. Currently, a form of modified cash basis reporting is being implemented and used to prepare government financial statements. Component 3: Reinforcing Financial Oversight and Accountability. A number of activities, including developing and training on Information and Communication Technology (ICT) tools and partnerships with private audit firms, have been completed. The Audit Management Information System (AMIS) contract has been signed and is currently being implemented. Remnant key audit aspects that were left out of the original contract have also been included in the existing AMIS contract. The AMIS will allow the Auditor General to monitor status of audit execution in each part of the country in a timely manner and on real time basis.The team continues to be encouraged to learn that no backlogs of government annual audits, foreseen at time of project design at MMDA levels, currently exist. Component 4: PFM Reform Coordination and Change Management. The Public Financial Management Reform Co ordination Unit (PMRCU) has guided the establishment of an effective PFMRP monitoring and reporting system and, together with the Ministry of Finance (MoF), is engaged in coordinating overall reforms of PFM. The PFMRP continues to monitor and direct project activities according to the approved work-plan for the third year of project implementation and is supporting this with an approved procurement plan which keeps being updated and being used as a tool for implementation. The Monitoring and Evaluation (M&E) Unit o f the PFMRCU has established reporting comprehensive frameworks to define baselines, set milestones, and track performance at activity level for all PFMRP activities. Progress has is being made to evaluate key milestones within each component and sub-component level. This notwithstanding, the procurement aspects of the project has been weak. An action plan has been put in place to be closely monitored every month. 6/12/2019 Page 2 of 8 The World Bank Implementation Status & Results Report Ghana: Public Financial Management Reform Project (P151447) Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Substantial -- Substantial Macroeconomic High -- High Sector Strategies and Policies Substantial -- Substantial Technical Design of Project or Program Moderate -- Substantial Institutional Capacity for Implementation and Sustainability Moderate -- Substantial Fiduciary Substantial -- Substantial Environment and Social Low -- Low Stakeholders Low -- Low Other -- -- -- Overall Substantial Substantial Substantial Results PDO Indicators by Objectives / Outcomes 6/12/2019 Page 3 of 8 The World Bank Implementation Status & Results Report Ghana: Public Financial Management Reform Project (P151447) Proportion of Budgetary expenditures in Annual Financial Statements of CAGD(including Consolidated IN00711350 ►Proportion of budgetary expenditures in Annual Financial Statements of CAGD(including Consolidated Funds,Stautory Funds,Internally Generated Funds and Donor Funds)processed through GIFMIS (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 68.02 68.00 90.00 Date 27-May-2019 30-Sep-2018 31-May-2019 31-Dec-2020 IN00711393 ►Percentage of Central GOG Cash Cash accounts in TSA at Bank of Ghana (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 63.00 100.00 90.00 Date 31-Dec-2020 28-Sep-2018 31-May-2019 31-Dec-2020 The indicator outlined is provisional since the 2018 financial statements are not readily available. Comments: IN00711426 ►Limitation in supplementary appropriations (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 6.20 0.00 0.00 3.00 Date 16-Jul-2015 28-Sep-2018 24-May-2019 31-Dec-2020 No supplementary appropriations are made for the annual budget IN00711394 ►Percentage of payroll subjected to annual payroll verification (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 2.00 100.00 100.00 Date 16-Jul-2015 28-Sep-2018 31-Dec-2020 31-Dec-2020 IN00711450 ►Expenditure arrears as a percentage of Central Goverment budgetary expenditures (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 19.70 6.90 6.90 10.00 Date 16-Jul-2015 28-Sep-2018 24-May-2019 31-Dec-2020 Intermediate Results Indicators by Components Enhancing Budget Credibility IN00711522 ►Number of MDAs reporting ex-post on program performance (Number, Custom) 6/12/2019 Page 4 of 8 The World Bank Implementation Status & Results Report Ghana: Public Financial Management Reform Project (P151447) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 43.00 45.00 45.00 Date 03-Aug-2015 28-Sep-2018 24-May-2019 31-Dec-2020 IN00711523 ►Percentage of Budgetary Spending Units submitting Cash forecasting plans (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 40.00 42.00 96.00 85.00 Date 15-Jul-2016 28-Sep-2018 24-May-2019 31-Dec-2020 IN00711524 ►MDAs integrating procurement planning as part of budget preparation process (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 7.00 37.00 45.00 45.00 Date 17-Jul-2015 28-Sep-2018 24-May-2019 31-Dec-2020 Public Financial Management Systems and Control IN00711544 ►GIFMIS expenditure management functionality established in MMDAs(for CF, statutory and IGFs (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 5.00 216.00 254.00 160.00 Date 17-Jul-2015 28-Sep-2018 24-May-2019 31-Dec-2020 IN00711615 ►Percentage of Public Service staff captured on the HRMIS (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 26.43 10.00 88.00 86.00 Date 17-Jul-2015 28-Sep-2018 24-May-2019 31-Dec-2020 IN00711736 ►Strengthening the internal audit institution and capacity through establishment of internal audit teams in MDAs focusing on risk-based and systemic issues (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 12.00 30.00 25.00 Date 17-Jul-2015 28-Sep-2018 24-May-2019 31-Dec-2020 IN00711668 ►Number of Government Staff that have completed IPSAS Business Process Training (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 250.00 6/12/2019 Page 5 of 8 The World Bank Implementation Status & Results Report Ghana: Public Financial Management Reform Project (P151447) Date 01-Mar-2019 28-Sep-2018 24-May-2019 31-Dec-2020 IN00711669 ►Percentage of Government staff who are female (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 45.00 Date 01-Mar-2019 28-Sep-2018 24-May-2019 31-Dec-2020 IN00711670 ►Unified chart of accounts prepared to meet GFS.budget and IPSAS needs;operational policies for GFS, PIM, and budget established (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target No unified chart of No unified chart of Evidence of the accounts prepared to accounts prepared to establishment of meet GFS, budget and meet GFS, budget and unified chart of No existence of unified IPSAS needs; IPSAS needs; accounts prepared to Value chart of accounts operational policies for operational policies for meet GFS, budget and GFS, PIM, and budget GFS, PIM, and budget IPSAS needs; established and established and operational policies for approved. approved. GFS,PIM Date 01-Mar-2019 28-Sep-2018 01-Mar-2019 31-Dec-2020 IN00711741 ►Preparation Opening 2020 Balance sheet (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Evidence of 2020 Value No No No balance sheet IPSAS compliant Date 24-May-2019 28-Sep-2018 01-Mar-2019 31-Dec-2020 Reinforcing Financial Oversight and Accountability IN00711742 ►Average time taken to complete external audit of MMDAs using modern audit techniques. (Months, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 12.00 7.00 6.00 6.00 Date 17-Jul-2015 28-Sep-2018 24-May-2019 31-Dec-2020 IN00711743 ►Strengthened Parliamentary Oversight Capacity (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Lack of analytical Published PAC reviewed Published PAC Published PAC capacity to review audit reports within 12 reviewed audit reports reviewed audit reports Value budgets ex ante and months of end of year of within 12 months of within 12 months of audit reports audit. end of year of audit. end of year of audit. implementation Date 17-Jul-2015 28-Sep-2018 17-Jul-2015 31-Dec-2020 6/12/2019 Page 6 of 8 The World Bank Implementation Status & Results Report Ghana: Public Financial Management Reform Project (P151447) Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P151447 IDA-56400 Effective USD 45.00 45.00 0.00 35.68 9.93 78% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P151447 IDA-56400 Effective 15-May-2015 05-Aug-2015 18-Aug-2015 30-Jun-2019 31-Dec-2020 Cumulative Disbursements Restructuring History There has been no restructuring to date. Related Project(s) 6/12/2019 Page 7 of 8 The World Bank Implementation Status & Results Report Ghana: Public Financial Management Reform Project (P151447) P162886- AF - Ghana: Public Financial Management Reform Project - Additional Financing 6/12/2019 Page 8 of 8