The World Bank Implementation Status & Results Report Bangladesh Strengthening PFM Program to Enable Service Delivery (P167491) Bangladesh Strengthening PFM Program to Enable Service Delivery (P167491) SOUTH ASIA | Bangladesh | Governance Global Practice | Requesting Unit: SACBD | Responsible Unit: ESAG2 IBRD/IDA | Program-for-Results Financing | FY 2019 | Team Leader(s): Winston Percy Onipede Cole, Nazmus Sadat Khan Seq No: 7 | ARCHIVED on 20-Jan-2022 | ISR49919 | Created by: Winston Percy Onipede Cole on 03-Jan-2022 | Modified by: Winston Percy Onipede Cole on 13-Jan-2022 Program Development Objectives PDO Table Program Development Objective (from Program Appraisal Document) The Program Development Objective (PDO) is to improve fiscal forecasting, budget preparation and execution, financial reporting and transparency to enable better resource availability for service delivery in selected Ministries, Departments, and Agencies. Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Implementation Status and Key Decisions Despite the challenges imposed by the ongoing COVID-19 pandemic with series of lockdowns, the Program is making progress. Key progress to date with 51 percent disbursement ratio are: (i) the macro-forecasting model will improve the realism of the budget with more attainable revenue projections and spending estimates; (ii) Debt Bulletin is now periodically published to improve debt transparency; (iii) publication of budget execution reports; (iv) the reduction of three to one month for release of budget from departments to frontline service delivery units will improve budget execution for critical services to the citizenry; (v) 100 percent electronic funds transfer (EFT) to pensioners; (vi) approval of State-owned Enterprises (SOE) Independent Performance Evaluation Guideline that will be used to develop turnaround strategies; (vii) policy and procedures to monitor SOEs’ debt and contingent liabilities (DCL) will provide fiscal space for strategic budget allocation to critical infrastructure and social services; and (viii) comprehensive database of financial and non-financial data to monitor SOEs including publication of audited financial statement. Mid-Term Review (MTR) mission will take place from January 24 to 27, 2022. The main objectives of the mission are to i) review the achievement of the Disbursement Linked Results (DLRs); (ii) evaluate overall Program performance compared to the Program Development Outcome (PDO); and iii) propose any structural changes to the Program design and results framework that may be needed to enhance the Program outcomes. Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P167491 IDA-63680 Effective USD 100.00 100.00 0.00 51.51 49.71 51% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P167491 IDA-63680 Effective 01-Mar-2019 27-Jun-2019 03-Jul-2019 30-Jun-2024 30-Jun-2024 1/20/2022 Page 1 of 21 The World Bank Implementation Status & Results Report Bangladesh Strengthening PFM Program to Enable Service Delivery (P167491) DLI Disbursement Achievement Disbursed amount in Disbursement % for DLI ID DLI Type Description Coc DLI Amount Status Coc DLI Loan: IDA63680-001 DLI1 Use of Imp Fis Proj Partially 1 Regular XDR 7,250,000.00 1,812,500.00 25 % Bud Making Achieved DLI2 Imp Bud Align, Bttr 2 Regular XDR 10,100,000.00 Not Achieved 0.00 Perf of BMCs DLI3 Red No of days DDO Partially 3 Regular XDR 4,350,000.00 3,640,950.00 84 % to rc budg inMDA Achieved DLI4 Rel Pymt of Sal, TSA Partially 4 Regular XDR 6,500,000.00 1,511,665.00 23 % Auto Pymnts Achieved DLI5 Impr Pen Ser Facili of Partially 5 Regular XDR 7,250,000.00 6,500,000.00 90 % Pymnts EFT Achieved DLI6 SOE Auto Bod Debt 6 Regular XDR 5,050,000.00 Not Achieved 0.00 Cont Liab Pol Mak DLI7 Impr Perf SOE Sec Partially 7 Regular XDR 7,950,000.00 1,450,000.00 18 % Red Subs Pc Total Achieved DLI8 Bud Hold MDA eff n Partially 8 Regular XDR 8,700,000.00 4,944,500.00 57 % trans use FI Achieved DLI9 Act tak Int Ext Audit 9 Regular XDR 5,050,000.00 Not Achieved 0.00 in MMDAs, PP DLI10 PFM Action Plan Partially 10 Regular XDR 10,100,000.00 2,416,666.67 24 % Implementation Achieved Program Action Plan Ensuring establishment of the PECT and PITs (within 3 months of the Effective Date) and that these are maintained Action Description throughout the Program implementation Source DLI# Responsibility Timing Timing Value Status Technical Finance Division Recurrent Continuous Completed Completion Measurement PECT and PITs are in place throughout the Program implementation Two out of the eight Program Executive and Coordinators (PECs) who were transferred have been replaced by Comments assigning their responsibilities to other PECs. Action Description Strengthen IPF as PFM Learning Hub by recruiting three permanent staff within six months of the Effective Date Source DLI# Responsibility Timing Timing Value Status Technical Finance Division Recurrent Continuous Completed Completion Measurement IPF strengthened with the addition of three permanent staffs Comments The IPF has appointed more than three permanent staffs 1/20/2022 Page 2 of 21 The World Bank Implementation Status & Results Report Bangladesh Strengthening PFM Program to Enable Service Delivery (P167491) Action Description DLI technical notes are reviewed and amended from time to time in consultation with the Bank Source DLI# Responsibility Timing Timing Value Status Technical Finance Division Recurrent Yearly Completed Completion Measurement DLI technical notes are periodically updated, in consultation with the Bank team Comments Arrange DLI verification by the OC&AG, the Cabinet Division and through a third-party verification agent (to be Action Description appointed no later than 3 months after the Effective Date) Source DLI# Responsibility Timing Timing Value Status Technical Finance Division Recurrent Yearly In Progress Completion Measurement Submission of DLI verification reports acceptable to the Bank FD has submitted second verification report to Office of Comptroller and Auditor Comments General (OCAG) and first verification report to PricewaterhouseCoopers (PwC). Assign separate organizational budget codes to the FD wings responsible for Program implementation (macro- Action Description economic, SOE, Debt, Expenditure etc.) to enhance managerial accountability of funds allocated to deliver on the specific DLI schemes Source DLI# Responsibility Timing Timing Value Status Fiduciary Systems Finance Division Due Date 30-Jun-2019 Completed Completion Measurement The Program budget for FY20 be distributed by FD wings Under code 10901 for Secretariat, Finance Division, there is a specific code [3200002] for overall Program with Comments scheme-wise separate organizational/implementation unit budget codes assigned. Program to use the separate standard document for procurement of permitted works through e-GP system, which Action Description does not have the provision of rejecting bids based on above/lower than the estimated cost Source DLI# Responsibility Timing Timing Value Status Fiduciary Systems Finance Division Recurrent Continuous In Progress Completion Measurement eGP used for all Program procurements There aren't any new works under the program. Use of specific documents will be ensured in case of any Comments rehabilitation work. Regular procurement of operational items such as computer equipment, printing materials are done through eGP. For each bid/proposal under the Program, form Bid/Proposal evaluation committees consisting of members with the Action Description appropriate knowledge and experience of procurement of similar goods/services 1/20/2022 Page 3 of 21 The World Bank Implementation Status & Results Report Bangladesh Strengthening PFM Program to Enable Service Delivery (P167491) Source DLI# Responsibility Timing Timing Value Status Fiduciary Systems Finance Division Recurrent Continuous In Progress Completion Measurement Procurement committees are suitably qualified/experienced Procurement committee includes experienced staff members. Some procurement packages have been prepared and Comments published for all DLIs except DLI 9 (internal audit). Action Description Assign one trained Government official as procurement focal point within six months of Effective Date Source DLI# Responsibility Timing Timing Value Status Fiduciary Systems Finance Division Recurrent Continuous In Progress Completion Measurement Trained officer designated as the Procurement Focal Point A procurement cell has been established with the recruitment of a procurement specialist, two junior consultants and Comments the evaluation committees for the procurement process have been notified. In addition, 1 PEC is assigned as procurement focal point. Action Description Maintain a publicly accessible website where all disclosable procurement data will be available and regularly updated Source DLI# Responsibility Timing Timing Value Status Fiduciary Systems PECT Recurrent Continuous In Progress Completion Measurement Website with disclosable procurement data Publicly accessible Program website (http://www.spfms.gov.bd/forms/form/1/-) with different procurement sections Comments was launched in January 2021. Annual procurement plan is uploaded in the website and needs to be updated with the latest procurement data Action Description FD seeks the advice of environmental and social expert(s) for the Program, as needed for Program activities Source DLI# Responsibility Timing Timing Value Status Environmental and Social Finance Division Recurrent Continuous Not Yet Due Systems Completion Measurement Either in-house capacity built or assistance sought from IMED Comments So far no need seems to be has arisen, but the Bank team will speak with PECT on this. Risks Systematic Operations Risk-rating Tool 1/20/2022 Page 4 of 21 The World Bank Implementation Status & Results Report Bangladesh Strengthening PFM Program to Enable Service Delivery (P167491) Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Substantial Substantial Substantial Macroeconomic Moderate Substantial Substantial Sector Strategies and Policies Moderate Moderate Moderate Technical Design of Project or Program Moderate Moderate Moderate Institutional Capacity for Implementation and Moderate Moderate Moderate Sustainability Fiduciary Substantial Substantial Substantial Environment and Social Low Low Low Stakeholders Moderate Moderate Moderate Other -- -- -- Overall Moderate Moderate Moderate RiskComments Comments The risks will be re-assessed during the MTR and ratings updated accordingly. Results PDO Indicators by Objectives / Outcomes Improve fiscal forecasting and resource allocation consistent with Government priorities IN01089980 ►Use of improved fiscal projections for budget-making (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 31-Oct-2018 12-Jul-2021 21-Jan-2022 30-Jun-2024 The requirements for the Macroeconomic model have been finalized and approved by the Finance Division in June 2021. The full dataset of macroeconomic variables for the real, monetary, external and fiscal sectors has been completed. Training program is ongoing on the macroeconomic model for improved projections. It is expected that model will be used for FY2022-23 budget preparation. Comments The Debt Bulletin has been published - https://mof.gov.bd/site/page/9466b739-2f5c-4914-ba82- b204af6a594e/Debt-Bulletin IN01089986 ►Improved budget alignment with development strategy through better performance of BMCs (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 20.00 Date 01-Oct-2018 12-Jul-2021 21-Jan-2022 30-Jun-2024 1/20/2022 Page 5 of 21 The World Bank Implementation Status & Results Report Bangladesh Strengthening PFM Program to Enable Service Delivery (P167491) Consultative workshop to finalize the Peer Review Guideline for the Budget Management Committee (BMC) Scorecard was held on December 2, 2021.The Peer Review Guideline sets the principles to assess performance of BMCs of ministries/divisions/other institutions. Objectives of peer review are as follows:  Measure performance of BMCs of ministries/divisions using a scorecard;  Share the best practices among the ministries/divisions/other institutions;  Improve the functioning of the BMCs in the areas such as, budget preparation, execution and Comments monitoring, disposal of audit objections and capacity development. The scorecard is designed on the assumption of linking policy, planning and budgeting under medium-term budget framework (MTBF). For this reason, the functions of BMCs are divided in four areas: (a) Alignment of MTBF with policies and strategies, (b) Budget Review & Approval (c) Monitoring, Evaluation & Audit Disposal; and (d) Capacity Development of BMCs and Miscellaneous. IN01089987 ►Reduced number of days for DDOs to receive budget in selected MDAs (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 53.92 56.97 60.00 Date 01-Oct-2018 12-Jul-2021 21-Jan-2022 30-Jun-2024 56.97 percent of Drawing and Disbursing Officers' (DDOs) FY2021-22 budget was released by July 31, 2021. 59.99 percent and 67.99 percent were released up to September and December 2021 respectively. Comments Improve budget execution in service delivery MDAs IN01089978 ►Timely and reliable payments of salaries and vendor invoices with a strengthened TSA and automated payment system (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target - 85% (1m out of 1.2m) - 85% (1m out of 1.2m) transactions are done transactions are done through EFT. EFT is through EFT. EFT is used mainly for pay bill used mainly for pay bill and pension purposes. and pension purposes. During the mission the During the mission the team reiterated that team reiterated that DDO - 40% EFT DDO online bill EFT used for officers’ online bill submission - 30% DDOs submission includes salaries only. No online includes vendor invoices submitting online bills vendor invoices on bills submission. Stock on which there has been - Number of new Value which there has been take of special accounts & limited progress so far. (outside TSA) special limited progress so far. EBFs will be done. accounts opened - 21,000 of the 36,000 annually reduced by - 21,000 of the 36,000 DDOs are submitting 40% DDOs are submitting staff pay bill online. The staff pay bill online. The task for developing a full- task for developing a fledged DDO with full-fledged DDO with provision for submitting provision for submitting all types of bills online is all types of bills online is on-going. on-going. 1/20/2022 Page 6 of 21 The World Bank Implementation Status & Results Report Bangladesh Strengthening PFM Program to Enable Service Delivery (P167491) Date 01-Oct-2018 12-Jul-2021 21-Jan-2022 30-Jun-2024 One of the benefits of improving cash management through the Treasury Single Account (TSA) is that the impact on the determination of borrowing requirements will be improved by consolidating cash balances. Reduction in costs of borrowing to the government will increase fiscal space for allocation to service delivery Comments and prompt settlement of government obligations will increase confidence in the payment system. DLI 4 will enable the reduction of cash held outside of the TSA and modernize payment processes. Promote enhanced transparency of the budget execution and enable timely accountability IN01089979 ►Budget holders in selected MDAs effectively and transparently use financial information (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 70.00 70.00 50.00 Date 01-Oct-2018 12-Jul-2021 21-Jan-2022 30-Jun-2024 Budget execution reports are available for 70% DDOs. Need to assess the ease of generation and use of Comments budget execution reports (BERs) by a sample group of users from "selected MDAs. Intermediate Results Indicators by Results Areas Improve budget execution in service delivery MDAs IN01089988 ►SOE and autonomous bodies' debt and contingent liabilities statement prepared and submitted to the policy makers (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target - Virtual stakeholder - Policy and workshop held on June procedures to regulate 28, 2021 and November SOEs’ debt and - A template for the debt 28,2021 in presence of contingent liabilities and contingent liabilities the Senior Secretary of (including an upgraded statement has been FD to finalize the framework for prepared. Procedure to Regulate reporting by SOEs to Virtual stakeholder the Debt and the Finance Division) workshop held on June Contingent Liabilities of have been drafted and 28, 2021 to finalize the State-Owned - SOE debt and contingent issued by MoF. Procedure to Regulate Enterprises liabilities are not - 100 SOEs and the Debt and (SOEs)/Autonomous effectively controlled autonomous bodies Contingent Liabilities of Bodies (ABs). Finally, - Partial data of SOEs have published their State-Owned Enterprises the procedure was profitability published in audited financial Value (SOEs)/Autonomous approved by the Senior the annual Economic statements (covering Bodies (ABs). Secretary of FD on 28 Survey of Bangladesh the relevant Fiscal - As of June 2021, SOE- December 2021 and - Fiscal risks assessments Year for which the MC provided a list of 70 official Government have not been conducted DLR is being SOEs for which Order (GO) issued on assessed). validation is ongoing to December 30, 2021. - SOE debt and ascertain publication of contingent liabilities their financial statements - As of November 2021, statement (covering on individual websites. SOE-MC provided a list the relevant Fiscal of 84 SOEs for which Year for which the validation is ongoing to DLR is being ascertain publication of assessed) has been their financial prepared by MoF for statements on individual all SOEs and websites. 1/20/2022 Page 7 of 21 The World Bank Implementation Status & Results Report Bangladesh Strengthening PFM Program to Enable Service Delivery (P167491) submitted to policy makers. Date 01-Oct-2018 12-Jul-2021 21-Jan-2022 30-Jun-2024 Currently, financial information on a few number of SOEs is published in the annual Economic Survey of Comments Bangladesh, SOE fiscal risks are not assessed and debt and contingent liabilities are not effectively controlled. This indicator seeks to improve the monitoring and reporting of SOEs. IN01089991 ►Improved performance of the SOE sector and reduced subsidies as a percentage of total public sector spending (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value SOEs are not classified as - Independent - Independent - SOE performance commercial and non- Performance Evaluation Performance Evaluation evaluation guidelines commercial. Guideline (IPEG) that will Guideline (IPEG) that have been developed There is some cover 166 SOEs/ABs has will cover 166 by the Finance performance monitoring of been approved and SOEs/ABs has been Division, with clear SOEs, but not systematic Government Order was approved and scoring criteria. and independent. issued in March 2021. Government Order was - A policy and Grants to SOEs are not issued in March 2021. procedures manual divided into different - 10 SOEs have been that enables an categories. selected that will undergo - Membership of the effective review of Partial data of SOEs an independent Independent grants to SOEs has profitability published in performance evaluation, Performance Evaluation been drafted and the annual Economic in accordance with the Committee (IPEC) for issued by the Finance Survey of Bangladesh. SOE performance conducting the Division. evaluation guidelines independent - At least 10 SOEs developed. performance evaluation have undergone an was officially approved independent on November 14, 2021 performance and evaluation is evaluation, in expected to start on the accordance with the first set of 10 SOE performance SOEs/ABs. evaluation guidelines developed. - The following 10 SOEs - Turnaround have been selected to strategies have been undergo an developed for at least independent 10 non-performing performance evaluation SOEs. in accordance with the - The ratio of SOE approved SOE transfers to total public independent spending (in the performance evaluation relevant Fiscal Year in guidelines (IPEG). which the DLR is being 1. Chittagong Port assessed) has been Authority (CPA) reduced by 15%. 2. Bangladesh Bridge Authority (BBA) 3. Bangladesh Overseas Employment and Service Limited (BOESL) 4. Khulna Development Authority (KDA) 5. Bangladesh Inland Water Transport Authority (BIWTA) 6. Bangladesh Small and Cottage Industries Corporation (BSCIC) 1/20/2022 Page 8 of 21 The World Bank Implementation Status & Results Report Bangladesh Strengthening PFM Program to Enable Service Delivery (P167491) 7. Bangladesh Power Development Board (BPDB) 8. Bangladesh Petrolium Corporation (BPC) 9.Bangladesh Shipping Corporation (BSC) 10. Bangladesh Forest Industries Development Corporation (BFIDC) Date 01-Oct-2018 12-Jul-2021 21-Jan-2022 30-Jun-2024 While there is some performance monitoring of SOEs there is no systematic and independent monitoring. Comments DLI7 seeks to improve the monitoring and evaluation of SOEs through the completion of independent performance evaluation. Promote enhanced transparency of the budget execution and enable timely accountability IN01089989 ►Improved pension service (disaggregated by gender) through the EFT no later than the following pension payment cycle after retirement (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target - The Pension Service - The Pension Service and GPF Module of and GPF Module of iBAS++ have been iBAS++ have been implemented and is implemented and is - The GP Fund Module operational. operational. and the Pension Disbursement for partial Disbursement for partial Service Module of achievement has been achievement has been iBAS++ have been made. Verification for the made. Verification for implemented and are next disbursement is in the next disbursement operational. process. is in process. - A centralized pension roll with EFT payment - All the new pensioners - Disbursement has capability has been - Long process often have been linked to the been made on the established and is results in a significant employee/payroll achievement of all the operational. delay after retirement to database and their DLRs’ except DLR 5.3. - A government-wide prepare a Pension monthly pension and The CAO Pension & annual GPF and Value Payment Order allowances are paid Fund Management Pension Service report - All pension and GP fund through EFT from the team has been has been produced. records are manual and first month of retirement. generating GPF and - The number of cases prone to human errors Pension reports which of delayed pension - Using NID, electronic will be submitted to payments is reduced Pension Payment Order OCAG for verification by 50%. (ePPO) has been made soon. - 90% of new fully operational. pensioners are paid - All the new pensioners through EFT no later - Deduction of GPF have been linked to the than the pension Subscription and Loan employee/payroll payment cycle Repayment are linked database and their following their with Budget Execution monthly pension and retirement. Module. allowances are paid through EFT from the - Pension backlog cases first month of still an issue. So far retirement. 1/20/2022 Page 9 of 21 The World Bank Implementation Status & Results Report Bangladesh Strengthening PFM Program to Enable Service Delivery (P167491) 61.78% back log cases have been resolved. - Using NID, electronic Pension Payment Order (ePPO) has been made fully operational. - Deduction of GPF Subscription and Loan Repayment are linked with Budget Execution Module. - Pension backlog has been reduced and at present the of cases is less than 200. Date 01-Nov-2018 12-Jul-2021 21-Jan-2022 30-Jun-2024 This indicator measures the timely processing of pension cases and expedient and convenient payment through EFT. Pension processing is cumbersome for both the Government of Bangladesh (GoB) and the pensioners, there is an urgent need to modernize the system through (i) establishment of a dedicated pension office (ii) the use of EFT and (iii) strengthened accounting and monitoring systems by linking with Comments (iBAS++), this IR seeks to streamline pension processing and payment system by undertaking immediate priority and interdependent actions which are necessary for improved service delivery concerning civil servant pension. IN01089992 ►Action taken on internal and external audit reports in Selected MDAs and post-procurement reviews in the Finance Division (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value Internal audit units are not - It was agreed that - It was agreed that - The Model Internal effective. internal audit units will be internal audit units will Audit Charter and the Internal audit activities established at be established at Risk-based Internal consist primarily of ex-post departmental-level departmental-level Audit Manual have reviews focused on starting with high-risk and starting with high-risk been issued by the financial compliance. high-spending and high-spending Finance Division. departments. The departments. MOF held - A system for annual departmental internal a virtual sensitization procurement planning audit units will report meeting followed by a and post-review has functionally to the face to face workshop been established by Principal Accounting to discuss the objective the Finance Division Officer (PAO), who of the intervention and and training on the according to section to understand the system has been 19(a) of the 2009 Public current IA practices in conducted. Moneys and Budget the pilot departments - Internal audit reports, Management Act and their challenges. prepared in (PMBMA) is responsible Recruitment process of accordance with the “to ensure efficient and consultants is on to Model Internal Audit transparent financial provide strategic Charter and the Risk- management and internal guidance to the based Internal Audit control processes at the departments and to Manual issued, have relevant Ministry or prepare Audit Charter been issued to the Division or Other and Risk based Audit heads of departments Institution”. Manual. The and principal departmental internal accounting officers of - The internal audit audit units will report any two departments ‘structure’ established at functionally to the in any of the Selected Finance Division, will be Principal Accounting MDAs. responsible for the Officer (PAO), who 1/20/2022 Page 10 of 21 The World Bank Implementation Status & Results Report Bangladesh Strengthening PFM Program to Enable Service Delivery (P167491) development of a model according to section - The relevant Audit internal audit charter, 19(a) of the 2009 Public Committees resolve guidelines, risk-based Moneys and Budget 50% of: (i) audit audit manual, quality Management Act recommendations for assurance and (PMBMA) is responsible each of the Selected continuous training. A “to ensure efficient and MDAs, other than the consulting firm will be transparent financial Finance Division and hired to provide technical management and (ii) audit assistance including internal control recommendations and conduct of post- processes at the procurement post- procurement reviews. relevant Ministry or reviews in Finance Division or Other Division, based on the - It was agreed that post- Institution”. stock of total audit review of procurement recommendations and will be conducted at the - The internal audit procurement post- procurement cell, ‘structure’ established at reviews, as applicable, established in the Finance Division, will be pending for each of the program office under responsible for the relevant Selected SPFMS program and development of a model MDAs and the Finance entrusted for entire internal audit charter, Division respectively, procurement of the guidelines, risk-based at the beginning of the program. audit manual, quality relevant Fiscal Year in assurance and which the DLR is being continuous training. A assessed. consulting firm will be hired to provide technical assistance including conduct of post-procurement reviews. - It was agreed that post-review of procurement will be conducted at the procurement cell, established in the program office under SPFMS program and entrusted for entire procurement of the program. Date 01-Oct-2018 12-Jul-2021 21-Jan-2022 30-Jun-2024 Internal audit (IA) is ad hoc and unstructured with isolated single audits and the applied standards are not based on International Standards for the Professional Practice in Internal Audit issued by The Institute of Internal Auditors (IIA ). Focus is more on pre-audit of documents and transactions for accuracy and compliance; outputs are dependent upon the skills of specific individuals holding the position as part of the Comments larger organizational unit with no specific professional practices and capabilities established; funding is approved by management as needed; enabling infrastructure is absent with no or minimal use of information technology. DLI 9 seeks to establish a modern internal audit function in selected large spending and high-risk departments as part of the suite of internal controls using risk-based audit methods concentrating on systemic issues and providing independent and objective advice to management. Establish an enabling environment for improved PFM outcomes IN01089990 ►PFM Action Plan implementation is effectively led through an adequate governance structure and an effective change management approach (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target 1/20/2022 Page 11 of 21 The World Bank Implementation Status & Results Report Bangladesh Strengthening PFM Program to Enable Service Delivery (P167491) Value PFM reform - Three PFM Action Plan - Three PFM Action - Two PFM Action implementation, Semi-annual progress Plan Semi-annual Plan progress reports monitoring, and course- report has been progress report has (prepared on a semi- correction are not approved by the SC. been approved by the annual basis in a adequately coordinated, SC. Fiscal Year) have been and a comprehensive - All three Independent submitted by the PECT change management Verification Agencies are - All three Independent to the Steering approach needs to be on board. Verification Agencies Committee. implemented are on board. - Two PFM Action - IPF has finalized 5 Plan stakeholder research topics. A - IPF has finalized 5 retreats conducted to consortium led by the research topics. REoI review the respective CIPFA has been was published in semi-annual PFM engaged to support the September 2021, EoI Action Plan progress IPF in achieving three received for three reports prepared under fundamental objectives: i) research papers and DLR 10.1 in a Fiscal the development of a technical sub-committee Year. PFM Competency of 3 members headed - The PFM Learning Framework; ii) a training by Dr. Md. Tarique, Hub has produced at needs assessment (TNA) Director, Bangladesh least 3 research and; iii) a Code of Institute Governance & papers on PFM reform Conduct for PFM Management (BIGM) is lessons and published professionals. ongoing. the said reports through its website. - Field inspection- How to - A consortium led by - 6 field inspections to Note has been approved the CIPFA engaged to government service and circulated. support the IPF has delivery centers to delivered: (i) the identify PFM-related - Five field inspections to development of a PFM issues have been Natore, Kishorgonj, Competency carried out. Khulna, and Bagerhat Framework; (ii) a - The PECT has have been conducted. training needs prepared a report assessment (TNA) and; evaluating the - Recruitment process for (iii) a Code of Conduct performance of hiring 4 Implementation for PFM professionals. coaches, facilitators Support Consultants and/or implementation (ICSs) completed in - Field inspection - How support consultants March 2021. 1st cohort of to Note has been engaged to support the ISCs successfully approved and implementation of the trained, on boarded and circulated. PFM Action Plan. deployed to specific - 100 civil servants PITS. Training report - Five field inspections (with data prepared. to Natore, Kishorgonj, disaggregated by Khulna, and Bagerhat gender) have - 19 officials have have been conducted. completed specialized enrolled for master’s PFM-related degree in different - Recruitment process courses/certifications. universities. for hiring 4 Implementation Support Consultants (ICSs) completed in March 2021. 1st cohort of ISCs successfully trained, on boarded and deployed to specific PITS. Training report prepared. - Recruitment process for hiring a 2nd cohort of 10 Implementation Support Consultants (ICSs) completed in December 2021. 2nd 1/20/2022 Page 12 of 21 The World Bank Implementation Status & Results Report Bangladesh Strengthening PFM Program to Enable Service Delivery (P167491) Cohort is expected to be on board by the end of January 2022. - 19 officials have enrolled for master’s degree in different universities. Date 01-Oct-2018 12-Jul-2021 21-Jan-2022 30-Jun-2024 DLI 10 supports a series of change management activities that are carefully articulated to analyze and learn from both successes and failures during the program implementation and improve approach to tackle the PFM problems. These change management activities include the key elements of program’s governance, implementation, and M&E systems, such as enabling progress reports to the Steering Committee and that these are reviewed in a broad-based program retreat encouraging results monitoring and mutual Comments accountability. DLI10 also seeks to establish a sustainable PFM learning environment with strengthened capacity of the Institute of Public Finance as a learning hub and institutionalizing the PFM research, field inspections, and problem-solving facilitation/ coaching. Annual performance reviews and DLI verification will enable a qualitative analysis of the enabling environment for PFM reforms so evolved and recommend improvements, as appropriate. Disbursement Linked Indicators DLI_IND_TABLE ►DLI 1 Use of improved fiscal projections for budget-making (Outcome, 10,000,000.00, 0%) Baseline Actual (Previous) Actual (Current) FY2022 - The macroeconomic model requirements have been finalized (DLR 1.1) - The macroeconomic and approved by the model requirements have Finance Division in June been finalized (DLR 1.1) 2021. and approved by the Finance Division. - The full dataset of macroeconomic variables - The full dataset of for the real, monetary, macroeconomic variables external, and fiscal sectors for the real, monetary, has been completed. A external, and fiscal training has been sectors has been conducted on the use of DLR 1.5 Projections completed. A training has Static revenue and World Bank’s Macro- from the upgraded been conducted on the expenditure estimates Fiscal Model (MFMOD). Macro-Economic Value use of World Bank’s restrict effective policy The procurement of the Model have been Macro-Fiscal Model making. software is ongoing. used for MTMF and (MFMOD). The budget preparation. procurement of the - The Debt Bulletin has software is ongoing. been published - https://mof.gov.bd/site/pag - The debt bulleting has e/9466b739-2f5c-4914- been published. ba82-b204af6a594e/Debt- Preparation of MTDS is Bulletin ongoing. - Stakeholder consultation on the draft Medium Term Debt Strategy was held on January 12, 2022. 1/20/2022 Page 13 of 21 The World Bank Implementation Status & Results Report Bangladesh Strengthening PFM Program to Enable Service Delivery (P167491) Date -- 12-Jul-2021 12-Jul-2021 -- Comments ►DLI 2 Improved budget alignment with development strategy and gender, social, and climate considerations through better performance of BMCs (Outcome, 14,000,000.00, 0%) Baseline Actual (Previous) Actual (Current) FY2022 - ToRs of BMCs and BWGs approved and - ToRs of BMCs and Government Order issued BWGs approved and in June 2021. Government Order issued in June 2021. - Consultative workshop DLR 2.4 The to finalize the Peer Review average - Review of the Guideline for the Budget performance score performance score card BMCs are not fully Management Committee of BMCs evaluated for BWG and BMC is still functional and require (BMC) Scorecard was through inter- ongoing. additional capacity and held on December 2, ministerial peer- empowerment. Gender 2021. reviews has - Most recent available disaggregated budget improved by at least Value public data for FY2019- summary is produced. - Most recent available 25% ($2.5m) DLR 20 show 24.32 percent Average spending on the public data for FY2019-20 2.5 The spending on social Social Infrastructure for last show 24.32 percent Government’s infrastructure that is two years is 28.87%. spending on social expenditure on within the boundary of infrastructure that is within Social Sectors has the Financing Agreement the boundary of the increased to 29.25% definition of social sector. Financing Agreement of total actual public Data on actual spending definition of social sector. expenditure ($2.5m) for FY2019-20 is 24.3 Data on actual spending percent. for FY2019-20 is 24.3 percent. Date -- 12-Jul-2021 12-Jul-2021 -- Comments ►DLI 3 Reduced number of days for DDOs to receive budget in selected MDAs (Outcome, 6,000,000.00, 0%) Baseline Actual (Previous) Actual (Current) FY2022 Value Currently the budget - A circular was issued - A circular was issued on -- release and distribution to on 12 April, 2020 to ease 12 April, 2020 to ease the DDOs takes around 2 the fund release process fund release process for months for the first quarter. for 4th tranche of the 4th tranche of the ‘grant in Budget release from the ‘grant in aid’ given to aid’ given to autonomous MoF to line ministry is no autonomous bodies and bodies and private longer required from this private institutions under institutions under year. Average budget Operating Budget. Operating Budget. release delay for quarter 3 and 4 is 2.3 months for - 53.92 percent of DDOs - 56.97 percent of DDOs health sector received their budget for FY2021-22 budget was FY 2019-20 by 31 July released by 31 July 2021. 2019. 59.99 percent and 67.99 percent were released up 1/20/2022 Page 14 of 21 The World Bank Implementation Status & Results Report Bangladesh Strengthening PFM Program to Enable Service Delivery (P167491) - The Accounting Module to September and of iBAS++ show that December 2021 DDO-wise budget respectively. release under the umbrella of pay-points for CAFOs, DCAs, DAFOs and UAOs. Date -- 12-Jul-2021 12-Jul-2021 -- Comments ►DLI 4 Timely and reliable payments of salaries and vendor invoices with a strengthened TSA and automated payment system (Outcome, 9,000,000.00, 0%) Baseline Actual (Previous) Actual (Current) FY2022 - DLR 4.2 (At least 50% - DLR 4.2 (At least 50% government payment government payment transactions are made transactions are made through EFT) has been through EFT) has been partially achieved. EFT is partially achieved. EFT is used mainly for pay bill used mainly for pay bill and pension purposes. and pension purposes. DDO online bill DDO online bill submission includes submission includes DLR 4.4 The vendor invoices on which vendor invoices on which number of new there has been limited there has been limited special accounts progress so far. progress so far. (outside the TSA) EFT used for officers’ opened (in the Value salaries only - Initial data on bank - Initial data on bank relevant Fiscal Year No online bills submission deposits of government deposits of government in which the DLR is sector collected revealed sector collected revealed being assessed) has 454,823 bank accounts. 454,823 bank accounts. been reduced by 50% - 21,000 of the 36,000 - 21,000 of the 36,000 DDOs are submitting DDOs are submitting staff staff pay bill online. The pay bill online. The task task for developing a full- for developing a full- fledged DDO with fledged DDO with provision for submitting provision for submitting all all types of bills online is types of bills online is on- on-going. going. Date -- 12-Jul-2021 12-Jul-2021 -- Comments ►DLI 5 Improved pension service (disaggregated by gender) through the EFT no later than the following pension payment cycle after retirement (Outcome, 10,000,000.00, 0%) Baseline Actual (Previous) Actual (Current) FY2022 Value Long process often results - The Pension Service - The Pension Service DLR 5.5 90% of in a significant delay after and GPF Module of and GPF Module of new pensioners are iBAS++ have been iBAS++ have been paid through EFT no 1/20/2022 Page 15 of 21 The World Bank Implementation Status & Results Report Bangladesh Strengthening PFM Program to Enable Service Delivery (P167491) retirement to prepare a implemented and is implemented and is later than the Pension Payment Order operational. operational. Disbursement pension payment All pension and GP fund Disbursement for partial for partial achievement cycle following their records are manual and achievement has been has been made. retirement prone to human errors made. Verification for the Verification for the next next disbursement is in disbursement is in process. process. - All the new pensioners - All the new pensioners have been linked to the have been linked to the employee/payroll employee/payroll database and their database and their monthly pension and monthly pension and allowances are paid allowances are paid through EFT from the through EFT from the first first month of retirement. month of retirement. - Using NID, electronic - Using NID, electronic Pension Payment Order Pension Payment Order (ePPO) has been made (ePPO) has been made fully operational. fully operational. - Deduction of GPF - Deduction of GPF Subscription and Loan Subscription and Loan Repayment are linked Repayment are linked with with Budget Execution Budget Execution Module. Module. Date -- 12-Jul-2021 12-Jul-2021 -- Comments ►DLI 6 SOE and autonomous bodies’ debt and contingent liabilities statement prepared and submitted to policy makers (Output, 7,000,000.00, 0%) Baseline Actual (Previous) Actual (Current) FY2022 Value - SOE debt and contingent - A template for the debt - Virtual stakeholder -- liabilities are not effectively and contingent liabilities workshop held on June controlled statement has been 28, 2021 and November - Partial data of SOEs prepared. 28,2021 in presence of the profitability published in the Virtual stakeholder Senior Secretary of FD to annual Economic Survey of workshop held on June finalize the Procedure to Bangladesh 28, 2021 to finalize the Regulate the Debt and - Fiscal risk assessments Procedure to Regulate Contingent Liabilities of have not been conducted the Debt and State-Owned Enterprises Contingent Liabilities of (SOEs)/Autonomous State-Owned Enterprises Bodies (ABs). Finally, the (SOEs)/Autonomous procedure was approved Bodies (ABs). by the Senior Secretary of - As of June 2021, SOE- FD on 28 December 2021 MC provided a list of 70 and official Government SOEs for which Order (GO) issued on validation is ongoing to December 30, 2021. ascertain publication of their financial statements - As of November 2021, on individual websites. SOE-MC provided a list of 84 SOEs for which validation is ongoing to ascertain publication of their financial statements on individual websites. 1/20/2022 Page 16 of 21 The World Bank Implementation Status & Results Report Bangladesh Strengthening PFM Program to Enable Service Delivery (P167491) Date -- 12-Jul-2021 12-Jul-2021 -- Comments ►DLI 7 Improved performance of the SOE sector and reduced subsidies as a percentage of total public sector spending (Outcome, 11,000,000.00, 0%) Baseline Actual (Previous) Actual (Current) FY2022 Value - SOEs are not classified as - Independent - Independent DLR 7.5 The ratio of commercial and non- Performance Evaluation Performance Evaluation SOE transfers to commercial Guideline (IPEG) that will Guideline (IPEG) that will total public spending - There is some cover 166 SOEs/ABs has cover 166 SOEs/ABs has has been reduced performance monitoring of been approved and been approved and by 15% SOEs, but not systematic Government Order was Government Order was and independent issued in March 2021. issued in March 2021. - Grants to SOEs are not divided into different - 10 SOEs have been - Membership of the categories selected that will undergo Independent Performance - Partial data of SOEs an independent Evaluation Committee profitability published in the performance evaluation, (IPEC) for conducting the annual Economic Survey of in accordance with the independent performance Bangladesh SOE performance evaluation was officially evaluation guidelines approved on November developed. 14, 2021 and evaluation is expected to start on the first set of 10 SOEs/ABs. - The following 10 SOEs have been selected to undergo an independent performance evaluation in accordance with the approved SOE independent performance evaluation guidelines (IPEG). 1. Chittagong Port Authority (CPA) 2. Bangladesh Bridge Authority (BBA) 3. Bangladesh Overseas Employment and Service Limited (BOESL) 4. Khulna Development Authority (KDA) 5. Bangladesh Inland Water Transport Authority (BIWTA) 6. Bangladesh Small and Cottage Industries Corporation (BSCIC) 7. Bangladesh Power Development Board (BPDB) 8. Bangladesh Petrolium Corporation (BPC) 1/20/2022 Page 17 of 21 The World Bank Implementation Status & Results Report Bangladesh Strengthening PFM Program to Enable Service Delivery (P167491) 9.Bangladesh Shipping Corporation (BSC) 10. Bangladesh Forest Industries Development Corporation (BFIDC) Date -- 12-Jul-2021 12-Jul-2021 -- Comments ►DLI 8 Budget holders in MDAs effectively and transparently use financial information (Outcome, 12,000,000.00, 0%) Baseline Actual (Previous) Actual (Current) FY2022 Value -The previous classification - Budget of FY2018-19, - Budget of FY2018-19, DLR 8.6 60% of chart limits financial 2019-20 and 2020-21 2019-20 and 2020-21 Budget Holders reporting and analysis; and released using new released using new generate 10 or more budget controllers do not BACS. The option in the BACS. The option in the monthly iBAS++ use financial reports accounting tab named accounting tab named reports for budget effectively “DDO Budget release “DDO Budget release execution decisions -As at June 2018, the status” shows that status” shows that budget monthly report (in pdf. budget had been had been released format) on fiscal position released through iBAS++ through iBAS++ in DDO’s available on FD website in DDO’s end. end. was for December 2017 (six months behind). - iBAS++ Interfaces - iBAS++ Interfaces -Annual Accounts are completed with completed with produced with a significant Bangladesh Bank, Sonali Bangladesh Bank, Sonali delay and follow the old Bank, MoPA, Social Bank, MoPA, Social templates of finance and Safety net. Work is Safety net. Work is appropriation accounts ongoing to interface with ongoing to interface with eGP and NID/TIN eGP and NID/TIN databases. databases. - A technical report on - A technical report on eGP interface with brief eGP interface with brief System Requirements System Requirements Specification (SRS) has Specification (SRS) has been prepared and been prepared and several meetings have several meetings have been arranged between been arranged between iBAS++ and eGP iBAS++ and eGP (CPTU). (CPTU). - New template for IPSAS - New template for compliant financial IPSAS compliant statement is under review financial statement is for OCAG’s approval. under review for OCAG’s approval. - Six SAEs use iBAS++ on a real-time basis with - Six SAEs use iBAS++ detailed transaction on a real-time basis with capturing; these SAEs are detailed transaction Public Works Department; capturing; these SAEs Roads and Highways; are Public Works Department of Public Department; Roads and Health Engineering; Highways; Department of Controller General of Public Health Defense Force; Forest Engineering; Controller Department and Railways. 1/20/2022 Page 18 of 21 The World Bank Implementation Status & Results Report Bangladesh Strengthening PFM Program to Enable Service Delivery (P167491) General of Defense In addition to the SAEs, Force; Forest Bangladesh missions in Department and Abu Dhabi, Dubai, New Railways. In addition to Delhi and Singapore are the SAEs, Bangladesh now using iBAS++. missions in Abu Dhabi, Dubai, New Delhi and - FD has started Singapore are now using publishing budget iBAS++. execution reports on MoF’s official website - FD has started (https://mof.gov.bd/site/re publishing budget ports/a4cf6d30-2002- execution reports on 492e-97eb- MoF’s official website ba3e42840ab6). (https://mof.gov.bd/site/re ports/a4cf6d30-2002- 492e-97eb- ba3e42840ab6). Date -- 12-Jul-2021 12-Jul-2021 -- Comments ►DLI 9 Action taken on internal and external audit reports in Selected MDAs and post-procurement reviews in the Finance Division (Output, 7,000,000.00, 0%) Baseline Actual (Previous) Actual (Current) FY2022 Value -Internal audit units are not - It was agreed that - It was agreed that -- effective. internal audit units will be internal audit units will be -Internal audit activities established at established at consist primarily of ex-post departmental-level departmental-level starting reviews focused on starting with high-risk and with high-risk and high- financial compliance high-spending spending departments. -Audit follow-up takes long departments. The The departmental internal time departmental internal audit units will report audit units will report functionally to the functionally to the Principal Accounting Principal Accounting Officer (PAO), who Officer (PAO), who according to section 19(a) according to section of the 2009 Public Moneys 19(a) of the 2009 Public and Budget Management Moneys and Budget Act (PMBMA) is Management Act responsible “to ensure (PMBMA) is responsible efficient and transparent “to ensure efficient and financial management and transparent financial internal control processes management and internal at the relevant Ministry or control processes at the Division or Other relevant Ministry or Institution”. Division or Other Institution”. - The internal audit ‘structure’ established at - The internal audit Finance Division, will be ‘structure’ established at responsible for the Finance Division, will be development of a model responsible for the internal audit charter, development of a model guidelines, risk-based 1/20/2022 Page 19 of 21 The World Bank Implementation Status & Results Report Bangladesh Strengthening PFM Program to Enable Service Delivery (P167491) internal audit charter, audit manual, quality guidelines, risk-based assurance and continuous audit manual, quality training. A consulting firm assurance and will be hired to provide continuous training. A technical assistance consulting firm will be including conduct of post- hired to provide technical procurement reviews. assistance including conduct of post- - It was agreed that post- procurement reviews. review of procurement will be conducted at the - It was agreed that post- procurement cell, review of procurement established in the program will be conducted at the office under SPFMS procurement cell, program and entrusted for established in the entire procurement of the program office under program. SPFMS program and entrusted for entire procurement of the program. Date -- 12-Jul-2021 12-Jul-2021 -- Comments ►DLI 10 PFM Action Plan implementation is effectively led through an adequate governance structure and an effective change management approach (Output, 14,000,000.00, 0%) Baseline Actual (Previous) Actual (Current) FY2022 Value PFM reform - Three PFM Action Plan - Three PFM Action Plan DLR 10.6 100 civil implementation, monitoring, Semi-annual progress Semi-annual progress servants (with data and course-correction are report has been report has been approved disaggregated by not adequately coordinated, approved by the SC. by the SC. gender) have and a comprehensive completed change management - All three Independent - All three Independent specialized PFM- approach needs to be Verification Agencies are Verification Agencies are related implemented on board. on board. courses/certification s. - IPF has finalized 5 - - IPF has finalized 5 research topics. A research topics. REoI was consortium led by the published in September CIPFA has been 2021, EoI received for engaged to support the three research papers and IPF in achieving three technical sub-committee fundamental objectives: i) of 3 members headed by the development of a Dr. Md. Tarique, Director, PFM Competency Bangladesh Institute Framework; ii) a training Governance & needs assessment (TNA) Management (BIGM) is and; iii) a Code of ongoing. Conduct for PFM professionals. - A consortium led by the CIPFA engaged to support - Field inspection- How to the IPF has delivered: (i) Note has been approved the development of a PFM and circulated. Competency Framework; 1/20/2022 Page 20 of 21 The World Bank Implementation Status & Results Report Bangladesh Strengthening PFM Program to Enable Service Delivery (P167491) (ii) a training needs - Five field inspections to assessment (TNA) and; Natore, Kishorgonj, (iii) a Code of Conduct for Khulna, and Bagerhat PFM professionals. have been conducted. - Field inspection- How to - Recruitment process for Note has been approved hiring 4 Implementation and circulated. Support Consultants (ICSs) completed in - Five field inspections to March 2021. 1st cohort of Natore, Kishorgonj, ISCs successfully Khulna, and Bagerhat trained, on boarded and have been conducted. deployed to specific PITS. Training report - Recruitment process for prepared. hiring 4 Implementation Support Consultants - 19 officials have (ICSs) completed in March enrolled for master’s 2021. 1st cohort of ISCs degree in different successfully trained, on universities. boarded and deployed to specific PITS. Training report prepared. - Recruitment process for hiring a 2nd cohort of 10 Implementation Support Consultants (ICSs) completed in December 2021. 2nd Cohort is expected to be on board by the end of January 2022. - 19 officials have enrolled for master’s degree in different universities. Date -- 12-Jul-2021 12-Jul-2021 -- Comments 1/20/2022 Page 21 of 21