The World Bank Report No: ISR9811 Implementation Status & Results Mongolia TA : Economic Capacity Building TA (P077778) Public Disclosure Copy Operation Name: TA : Economic Capacity Building TA (P077778) Project Stage: Implementation Seq.No: 17 Status: ARCHIVED Archive Date: 25-Mar-2013 Country: Mongolia Approval FY: 2003 Product Line: IBRD/IDA Region: EAST ASIA AND PACIFIC Lending Instrument: Technical Assistance Loan Implementing Agency(ies): Key Dates Board Approval Date 24-Jun-2003 Original Closing Date 30-Sep-2007 Planned Mid Term Review Date Last Archived ISR Date 01-Jan-2013 Effectiveness Date 11-Feb-2004 Revised Closing Date 31-Mar-2013 Actual Mid Term Review Date Project Development Objectives Project Development Objective (from Project Appraisal Document) To design and implement a public sector management reform program aimed at improving: (a) budgetary and public expenditure management systems and processes; and (b) civil service and public administration performance. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Strengthening Public Expenditure Management Processes 6.80 Modernizing the Public Administration and the Civil Service 1.30 Project Management 0.40 Overall Ratings Previous Rating Current Rating Public Disclosure Copy Progress towards achievement of PDO Moderately Unsatisfactory Unsatisfactory Overall Implementation Progress (IP) Moderately Unsatisfactory Moderately Unsatisfactory Overall Risk Rating Implementation Status Overview The main achievements of the Project include: (a) a full rollout of the Government Financial Management Information System (GFMIS) which has greatly enhanced the Treasury's expenditure controls and improved payment processing; (b) the successful passage of the Fiscal Stability Law that should significantly improve fiscal policy by requiring the MTFF and the budget to adhere to fiscal rules that smooth expenditures, control expenditure growth, and put a ceiling on public debt; and (c) successful passage of the Integrated Budget Law that strengthens planning and budgeting, increases the comprehensiveness of the budget, and supports fiscal decentralization and participatory budgeting. The project failed to Page 1 of 8 The World Bank Report No: ISR9811 achieve its objective on civil service reform and the development of a Human Resource Management Information System (HRMIS), on a fully functional Budget System, and on implementing a medium-term expenditure framework. Locations Public Disclosure Copy No Location data has been entered Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Audit reports presented to parliament within Yes/No Value No Yes period described by Law and decisions of Date 01-Jan-2004 15-Mar-2013 parliament made public Comments Original PAD indicator that Partially achieved. Audits are was not used in regular ISR done on time but audit monitoring as it was not linked findings not regularly made to project activities public Sector MTEF reflect recommendations for Yes/No Value No No Country Gender Assessments Date 01-Jan-2004 15-Mar-2013 Comments Original PAD indicator that Not achieved was not used as it is not very clear Sector MTEF consistent with ceilings and Yes/No Value No No policy priorities Date 01-Jan-2004 15-Mar-2013 Comments Not achieved. There is no functional MTEF in Mongolia Procurement lead time reduced to below three Days Value 90.00 months Date 15-Mar-2013 Comments Original PAD indicator that Achieved. But this has no was not used for monitoring implication on the quality of as it is not linked to project the procurement Public Disclosure Copy activities Budget execution reports available on a Yes/No Value No Yes Yes quarterly basis Date 01-Jan-2004 15-Mar-2013 15-Mar-2013 Comments Original indicator that was not Monthly and quarterly budget used. It is however a useful execution reports have been indicator on the effectiveness prepared for quite some time of the GFMIS Arrears systematically reduced Yes/No Value Yes Date 15-Mar-2013 Page 2 of 8 The World Bank Report No: ISR9811 Comments Original PAD indicator that Arrears are not a problem and was not used but is a good are less than 1% of total indicator of the impact of the expenditures GFMIS Public Disclosure Copy Time elapsed between beginning of budget Days Value 95.00 preparation and cabinet level involvement Date 01-Jan-2004 15-Mar-2013 involvement is reduced to two months Comments This was an original indicator There are no issues of delays in the PAD that was not used in budget preparation. The for monitoring during process begins in June 1 with implementation since it is not the approval of MTFF, with linked to project activities submission of budget to cabinet on Sept 15. Budget preparation process streamlined and Yes/No Value No Yes clear timetable adopted Date 01-Jan-2004 15-Mar-2013 Comments This was an original indicator There is a clear budget in the PAD that was not used timetable in the Budget Law for monitoring during that is being implemented implementation since it is not linked to project activities Comprehensive MTFF implemented based on Text Value Fiscal Framework Statement NOT ACHIEVED MTFF based on fiscal rules as fiscal rules (FFS) resulting in procyclical defined in Fiscal Stability Law fiscal policy; budget's implemented for the 2013 prepared that do not adhere budget to targets in FFS Date 01-Jan-2004 15-Mar-2013 30-Mar-2013 Comments The 2013 budget is pro- cyclical based on overly ambitious revenue targets. Significant off-budget spending by the Development Bank,and through the Bank of Mongolia, violate the FSL in Public Disclosure Copy spirit. Improved quality of data on civil servants, Text Value Complex pay and grading NOT ACHIEVED Government resolution mproved compensation structure and HR structure that negatively simplifying pay for the performance management framework impacts staff morale; administrative service by significant political influence merging several allowances on certain key positions that into basic pay; salary results in high turnover of increasesbased on findings of staff, particularly during the pay comparator surveys election cycle Date 30-Sep-2003 15-Mar-2013 30-Mar-2013 Page 3 of 8 The World Bank Report No: ISR9811 Comments No progress to date on simplifying the pay structure or basing civil service pay increases to pay comparator Public Disclosure Copy surveys Fully functional Government Financial Text Value Phase I of GFMIS hardware ACHIEVED ACHIEVED: GFMIS Management Information System operating deployed under Fiscal connected to all Aimags and Technical Assistance Project. UB districts. Hardware for However, Aimags and UB Soums delivered. System fully districts not connected operational Date 31-Jan-2003 15-Mar-2013 30-Mar-2013 Comments This PDO has been achieved The PDO has been achived More accurate medium term projection of Yes/No Value No No staffing, needs, skills, costs aligned to MTEF Date 01-Jan-2004 15-Mar-2013 Comments Original PAD indicator that Not achieved as there is no was not used functioning MTEF Credible sector ceilings for sector ministry Yes/No Value No No Yes budgets Date 01-Jan-2004 15-Mar-2013 15-Mar-2013 Comments This is an original PAD Sector ceilings, while indicator that has not been distributed annually, are non- used. This however, is a good binding and are not credible sub-indicator of the MTEF as line ministry proposals indicator exceed these by significant amounts Budget ceilings shared with all cabinet Days Value 30.00 members at most two months after start of Date 15-Mar-2013 budget process Comments This is an original PAD MTFF approved June 1 and indicator that has not been budget ceilings distributed used. July 1. This target has therefore been met. Public Disclosure Copy Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Development of pilot regulations for Yes/No Value Yes organizational and individual performance Date 15-Mar-2013 evaluation Comments Original PAD indicator that Achieved was not tracked in the ISRs as it is not particularly meaningful Page 4 of 8 The World Bank Report No: ISR9811 Feedbacl on public service delivery surveys on Yes/No Value organizational performance made public Date Comments Original PAD indicator that Public Disclosure Copy was not tracked as it was not linked to activities funded in the project Implementation of a severance/retrenchment Yes/No Value No policy Date 15-Mar-2013 Comments Original PAD indicator that was not used in ISRs as overstaffing is not a problem in the civil service. On the contrary, key ministries are understaffed Civil service census completed Yes/No Value No Yes Date 01-Jan-2004 15-Mar-2013 Comments Original PAD indicator that A civil service census was was not tracked as absent an completed in 2007. However, HRMIS the use of the census it is unclear what purpose this was not clear. served as there was no HRMIS in place at thetime to make use of the data Implementation of a strategic plan for Yes/No Value No institutional strengthening of the Civil Service Date 15-Mar-2013 Council Comments Not achieved. No progress in strengthening the Civil Service Council Development and implementation of a medium Yes/No Value No term civil service reform strategy Date 15-Mar-2013 Comments Not achieved Public Disclosure Copy Greater satisfaction among users of services Yes/No Value with organizational performanceand integrity Date Comments Original PAD indicator that was not tracked as it was not linked to activities funded in the project Less deviation between projected and actual Percentage Value 5.00 personnel costs Date 15-Mar-2013 Page 5 of 8 The World Bank Report No: ISR9811 Comments Original PAD indicator that Achieved. GFMIS has was not tracked in regular enhanced fiscal controls and ISRs as this was not a major personnel expenditures are problem in Mongolia generally within budget limits Public Disclosure Copy Results based monitoring framework in Number Value selected ministries adopted Date Comments Original PAD indicator that was not tracked Internal audit mandate and internal audit Yes/No Value No No methodology adopted Date 01-Jan-2004 15-Mar-2013 Comments Key reports on agency performance available Yes/No Value to the public Date Comments Original PAD indicator that was not tracked as it is not linked to project activities Implementing rules and regulations for Yes/No Value Yes procurement law developed Date 15-Mar-2013 Comments Original PAD indicators that This has not been an issue in was not used as it is not public procurement. particularly meaningful Sector MTEF's consistent with sector ceilings Yes/No Value No No Date 01-Jan-2004 15-Mar-2013 Comments Not achieved as there is no functioning MTEF Comprehensive MTEF developed Yes/No Value No No Date 01-Jan-2004 15-Mar-2013 Comments Not achieved Public Disclosure Copy A system for appraising public investment Text Value Minimal economic appraisal 2013 capital budget based on projects developed of public investment projects strengthened process financed by the state budget established in the IBL Date 01-Jan-2004 11-Dec-2012 30-Mar-2013 Comments Limited capacity in the MoF and the planning ministry to implement IBL provisions in 2012 Page 6 of 8 The World Bank Report No: ISR9811 A Human Resource Management Information Text Value Incomplete and fragment data HRMIS in place, thereby System implemented and fully functional on human resources and providing information on payroll which compromises payroll and postion HR planning and wage bill management. Functional Public Disclosure Copy planning and execution reviews for the MoF, MSWL, and MoE conducted Date 01-Jan-2004 11-Dec-2012 30-Mar-2013 Comments A functional design of a Unlikely to be achieved centralized payroll and HR database completed and accepted by CSC and MoF. Further software development issubject to available funding, either from the Government budget or other development partners Budget Preparation System implemented and Text Value A simple internal built 2014 budget prepared using fully functional database called Fiscal used BPIS. for budget preparation Date 01-Jan-2004 15-Nov-2012 01-Aug-2013 Comments Failed. Only 60 percent of the With operational acceptance core modules were deemed in February 2013, and training to have passed, against a of staff from December 2012 target of 90 percent to May 2013, 2014 budget can commence on BPISin June 2013. Data on Financial Performance (as of 22-Jan-2013) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P077778 IDA-38030 Effective 24-Jun-2003 23-Sep-2003 11-Feb-2004 30-Sep-2007 31-Mar-2013 Public Disclosure Copy Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P077778 IDA-38030 Effective XDR 5.50 5.50 0.00 5.24 0.26 95.00 Disbursement Graph Page 7 of 8 The World Bank Report No: ISR9811 Public Disclosure Copy Key Decisions Regarding Implementation None Restructuring History Level two Approved on 15-Jul-2010 Related Projects There are no related projects. Public Disclosure Copy Page 8 of 8