The World Bank Implementation Status & Results Report Project to Strengthen budget execution and financial reporting systems (P163131) Project to Strengthen budget execution and financial reporting systems (P163131) EAST ASIA AND PACIFIC | Marshall Islands | Governance Global Practice | IBRD/IDA | Investment Project Financing | FY 2018 | Seq No: 7 | ARCHIVED on 27-Jun-2022 | ISR51284 | Implementing Agencies: Ministry of Finance, The Republic of the Marshall Islands Key Dates Key Project Dates Bank Approval Date: 30-May-2018 Effectiveness Date: 01-Oct-2018 Planned Mid Term Review Date: 29-Oct-2021 Actual Mid-Term Review Date: 18-Oct-2021 Original Closing Date: 25-Sep-2023 Revised Closing Date: 25-Sep-2023 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The objective of the project is to improve the completeness, reliability and timeliness of Government’s annual financial statements, and the availability of reliable socioeconomic statistics. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Strengthening the Public Financial Management Environment:(Cost $0.50 M) Financial Management Information System (FMIS):(Cost $4.48 M) Change Management and Human Resource Development:(Cost $0.97 M) Household Income and Expenditure Survey (HIES) Implementation:(Cost $0.65 M) Project Management:(Cost $2.40 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Substantial Moderate Implementation Status and Key Decisions The project Implementation progress has gained momentum since the October 2021 mission. Key achievements include the onboarding of the FMIS vendor, continued recruitment of key project consultants, and the implementation of the competency framework that was approved by the Cabinet. The project disbursement stands at 22 percent (US$1.9 million) as of April 2022. The disbursement significantly lags the expected USD 7.8 million by 2022 Q3 this is expected to pick up given the FMIS contract implementation. The mission noted progress on all project components despite the continued COVID-19-related impacts and lack of a project manager. The FMIS vendor's key team members are in Majuro which has accelerated the implementation of the FMIS. The legislative drafting officer is onboard, and the recruitment of a consultant to review and develop the existing and new procedure manuals is underway. A TOR for the internal audit advisor has been submitted to the Bank for review. The Financial Management Act (FMA) is being reviewed by the legislative drafting officer 6/27/2022 Page 1 of 7 The World Bank Implementation Status & Results Report Project to Strengthen budget execution and financial reporting systems (P163131) and the final draft is expected to be presented to the MOF by May 13, 2022 and submitted for Cabinet endorsement by May 16, 2022. The FMA is one of the Performance and Policy Actions (PPA), as part of the Sustainable Development Financing Policy (SFDP), intended to facilitate RMI IDA allocation for FY23. The Project Development Objective remains highly relevant, and achievements of the development objective and implementation progress remain Moderately Satisfactory. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Moderate Low Low Macroeconomic Moderate Moderate Moderate Sector Strategies and Policies Moderate Moderate Moderate Technical Design of Project or Program Moderate Moderate Moderate Institutional Capacity for Implementation and Substantial Substantial Substantial Sustainability Fiduciary Substantial Substantial Substantial Environment and Social Low Low Low Stakeholders Moderate Substantial Substantial Other -- Substantial Moderate Overall Substantial Substantial Moderate Results PDO Indicators by Objectives / Outcomes To improve the completeness, realiability and timeliness of Government’s annual financial statements IN01136983 ►PDO-1: Completeness, quality and timeliness criteria met for Annual Financial Statements by MoF (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target New Chart of Accounts New Chart of Accounts Single audit submission drafted and adopted AFS for FY2022 drafted and adopted by deadline (9 months after by the Steering submitted for audit by Value the Steering Committee year-end) not met Committee and FMIS Dec 31, 2022 and FMIS contract contract under signed implementation Date 29-Jun-2018 30-Nov-2021 29-Apr-2022 30-Jun-2023 IN01136985 6/27/2022 Page 2 of 7 The World Bank Implementation Status & Results Report Project to Strengthen budget execution and financial reporting systems (P163131) ►PDO-3: New FMIS used for preparation of budget and recording of revenue and expenditure transactions (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target New FMIS used for recording revenue and Accounting software 4- expenditure Value Gov in use but being No change No change transactions and phased out preparation of budget for FY2024 Date 29-Jun-2018 30-Nov-2021 29-Apr-2022 31-Jul-2023 To improve the availability of reliable socioeconomic statistics IN01136984 ►PDO-2: Production, publication of statistical abstract featuring key findings from the HIES (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Final Statistical Statistical abstract No HIES data available Value Data cleaning completed Abstract ready for featuring key findings since 2002 launching from HIES published Date 29-Jun-2018 30-Nov-2021 29-Apr-2022 31-Mar-2021 Intermediate Results Indicators by Components Strengthening the Public Financial Management Environment IN01137016 ►IR-1: Procedures Manual updated with detailed guidance (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Procedures Manual in place with detailed guidance for budget formulation, As-is manuals for three Value No change No change accounting, internal functions available controls, payroll, fixed assets, cash management and financial reporting Date 29-Jun-2018 30-Nov-2021 29-Apr-2022 31-Mar-2022 IN01137020 ►IR-2: New chart of accounts adopted to facilitate management, financial and statistical reporting (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target “D” score in 2012 PEFA PI-5; economic New COA meets classification used for CoA adopted by Steering CoA adopted by Value criteria for "A" score for execution and reporting, Committee Steering Committee PI-4 but not for preparation and appropriation. No 6/27/2022 Page 3 of 7 The World Bank Implementation Status & Results Report Project to Strengthen budget execution and financial reporting systems (P163131) functional or sub- functional classification. Date 29-Jun-2018 30-Nov-2021 29-Apr-2022 30-Dec-2020 IN01137023 ►IR-3: Update to Public Procurement Code and Implementation Guidance issued (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Updated Public Code in need of update Updates to Updates to Procurement Procurement Code Value and no implementation Procurement Code Code drafted and IRR in use for guidance available prepared and reviewed public procurement Date 29-Jun-2018 30-Nov-2021 29-Apr-2022 30-Jun-2023 Financial Management Information System IN01137017 ►IR-4: Financial data integrity achieved to meet “B” score for PI-27 (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target “D” score in 2012 PEFA PI-22. Bank account reconciliation and Criteria for “B” score Value No change No change clearance of suspense for PI-27 fully met and advance accounts delayed and incomplete Date 29-Jun-2018 30-Nov-2021 29-Apr-2022 31-Dec-2022 IN01137021 ►IR-5: In-year budget reports prepared and published by MoF to meet PEFA Framework “B” score of PI-28 (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target In-year budget reports prepared and cleared for publication on MoF In-year budget reports website meeting Value not prepared and not No change No change criteria for timing, published accuracy, coverage and comparability to meet criteria of “B” score for PI-28 Date 29-Jun-2018 30-Nov-2021 29-Apr-2022 30-Jun-2023 Change Management and Human Resource Development IN01137018 ►IR-6: Competency framework with gender targets adopted for PFM related jobs across govt (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target No competencies for Competency framework Competency Competency PFM related roles used as basis for framework used as framework specifying Value defined. Gender targets preparing training plans basis for preparing minimum skillsets not identified. without targets to training plans without required adopted for 6/27/2022 Page 4 of 7 The World Bank Implementation Status & Results Report Project to Strengthen budget execution and financial reporting systems (P163131) increase female targets to increase PFM related jobs employment at technical female employment at across government and managerial level in technical and and used for MoF managerial level in recruitment and MoF training to build gender-balanced workforce Date 29-Jun-2018 30-Nov-2021 29-Apr-2022 30-Jun-2023 IN01137022 ►IR-7: Number of staff completing external training programs in PFM related disciplines (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 22.00 62.00 50.00 Date 29-Jun-2018 30-Nov-2021 29-Apr-2022 30-Sep-2023 IN01137024 ►IR-8: Gender-sensitive communications conducted for the project for awareness and building ownership (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target MoF website MoF website enhanced enhanced and No communication and launched with regularly updated with strategy; regular updates gender-sensitive content information for MoF website is being Value and information not and design, including government staff and redesigned. released for government functionality to capture citizens with staff and citizens. feedback from functionality developed beneficiaries for capturing and summarizing feedback. Date 29-Jun-2018 30-Nov-2021 29-Apr-2022 30-Jun-2023 IN01137025 ►IR-9: Transparency and citizen engagement in budget preparation and execution (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target MoF website includes functionality to capture citizen feedback. Information on budget preparation stages, final budget and MoF website enhanced quarterly updates on to include functionality for MoF website exists but budget execution capturing feedback from MoF website is being does not provide platform posted regularly Value project beneficiaries revamped. for receiving citizen including: (government staff and feedback. a) Summary presented citizens) in a citizen-friendly format understandable by non-technical audience; b) Summary of citizen feedback received and government response Date 30-Apr-2018 30-Nov-2021 29-Apr-2022 30-Jun-2023 IN01137026 6/27/2022 Page 5 of 7 The World Bank Implementation Status & Results Report Project to Strengthen budget execution and financial reporting systems (P163131) ►IR-10: Training plan developed to meet standards set in competency framework and address skills gaps (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Training plan Training plan developed developed to develop to develop skills as per skills as per Competency Framework Competency without targets for Framework without Training plans in place Value No training plans in place increased targets for increased for MoF staff female participation at female participation at technical and managerial technical and level managerial level Date 29-Jun-2018 30-Nov-2021 29-Apr-2022 31-Jan-2022 IN01137027 ►IR-11: Number of external training program partnerships for certification and degree courses in PFM (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Three (3) external Four (4) external Two (2) external training training program training program program partnerships for partnerships for No external training partnerships for certification and degree certification and Value program partnerships in certification and courses in PFM related degree courses in place degree courses in disciplines PFM related PFM related disciplines disciplines Date 30-Jun-2018 30-Nov-2021 29-Apr-2022 30-Jun-2023 Household Income and Expenditure Survey (HIES) Implementation IN01137019 ►IR-12: Household Income and Expenditure Survey (HIES) fieldwork and data cleaning completed (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Statistical Abstract HIES data cleaning HIES not conducted HIES draft report reflecting HIES Value completed and since 2002 completed. findings ready for documented launching Date 30-Jun-2018 30-Nov-2021 29-Apr-2022 31-Dec-2020 Performance-Based Conditions Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P163131 IDA-D3220 Effective USD 9.00 9.00 0.00 2.92 5.47 35% 6/27/2022 Page 6 of 7 The World Bank Implementation Status & Results Report Project to Strengthen budget execution and financial reporting systems (P163131) Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P163131 IDA-D3220 Effective 30-May-2018 18-Jul-2018 01-Oct-2018 25-Sep-2023 25-Sep-2023 Cumulative Disbursements Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 6/27/2022 Page 7 of 7