The World Bank Report No: ISR3386 Implementation Status & Results Chile Public Disclosure Copy Second Public Expenditure Management (P103441) Operation Name: Second Public Expenditure Management (P103441) Project Stage: Implementation Seq.No: 10 Status: ARCHIVED Last Modified Date: 07-Jun-2011 Country: Chile Approval FY: 2008 Product Line: IBRD/IDA Region: LATIN AMERICA AND CARIBBEAN Lending Instrument: Technical Assistance Loan Implementing Agency(ies): Ministry of Finance Key Dates Board Approval Date 28-Aug-2007 Original Closing Date 30-Jun-2013 Planned Mid Term Review Date 25-Apr-2011 Last Archived ISR Date 08-Jan-2011 Effectiveness Date 27-Feb-2008 Revised Closing Date 30-Jun-2013 Actual Mid Term Review Date Project Development Objectives Project Development Objective (from Project Appraisal Document) The overall development objective would be to increase the efficiency of operations regarding financial management, budget formulation, and budget execution, and the transparency of public expenditure management at the central and municipal level through the implementation of an updated, functionally enhanced and expanded financial administration system (SIGFE). Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Upgrading and Extending the Financial Information System to the Central Government Entities 17.10 Improvement of Budget Procedures and Mechanisms of the Management Control System 2.80 Strengthening Financial Administration at the Municipal Level 4.50 Public Disclosure Copy Project Management 0.40 Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Implementation Status Overview Project implementation has been satisfactory so far, particularly in components 1 and 3. On April 25-29, 2011 the supervision team carried out the mid-term review of the project in order to assess progress against PDO and Intermediate Outcome indicators; and review the results framework to better align it with the priorities of the new administration. Minor modifications and adjustments to the Project#s Document were agreed to review some indicators of components 1 and 3 and re-allocate expenditures. A proposal for restructuring Page 1 of 10 The World Bank Report No: ISR3386 sub-component 2.2. is expected by June 2011. Public Disclosure Copy Some of the Project's indicators have been revised during the MTR and are waiting for formal approval, to be reported/updated when restructured. Results Project Development Objective Indicators Indicator Baseline Current End Target Indicator Name Value Value Value Time required for aggregating the financial data of the central 30 day lag in data aggregation Final version of the system is being Time required for aggregating the government is to be reduced from 30 to 8 days, by YR 2-5. tested. The system will be financial data of the central Date launched in July 2011 with 51 government reduced to 8 days 03-Aug-2007 institutions Date Type Unit of Measure Comment Date Custom Indicator Text 07-Jun-2011 Comment Comment Indicator was revised in the mid- term review. Waiting for formal approval, to be reported in the Project's restructuring Indicator Baseline Current End Target Indicator Name Value Value Value Time required to update SIGFE with the data generated by the SIAP One week time One week time Time required to update SIGFE system is to be reduced from one week to one day, YR 3-5. with the data generated by the Date Date SIAP system reduced to one day 03-Aug-2007 07-Jun-2011 Date Type Unit of Measure Comment Comment Custom Indicator Text Indicator was revised in the mid- term review. Waiting for formal Comment Public Disclosure Copy approval, to be reported in the Project's restructuring Indicator Baseline Current End Target Indicator Name Value Value Value Processing capacity of SIGFE increased from 95,000 to 200,000 Transaction processing capacity of System with processing capacity Processing capacity of SIGFE financial transactions per day, response time 8 seconds per transaction 95,000 per day increased to 200,000 financial Date measured at portal, YR 3-5. transactions per day Date 07-Jun-2011 03-Aug-2007 Date Type Unit of Measure Comment Custom Indicator Text Comment Comment Page 2 of 10 The World Bank Report No: ISR3386 Indicator Baseline Current End Target Public Disclosure Copy Indicator Name Value Value Value Time for processing transactions in Central Government Entities so Transaction processed in Central Transaction processed in Central Time for processing transactions in that information is available in SIGFE, reduced from 20 to less than 2 Government available in SIGFE in Government available in SIGFE in Central Government Entities so days 20 days 20 days that information is available in Date Date SIGFE, reduced to less than 2 Type Unit of Measure days 03-Aug-2007 07-Jun-2011 Custom Indicator Text Date Comment Comment Comment Indicator Baseline Current End Target Indicator Name Value Value Value Financial information and expenditures of 100 municipalities available 100 municipalities do not have SIFIM installed in 112 Financial information and in the Municipal Financial Information System, which can aggregate all financial information system municipalities and 10 municipal expenditures of 100 municipalities municipalities. corporations. available in the Municipal Financial Date Date Information System Type Unit of Measure 03-Aug-2007 07-Jun-2011 Date Custom Indicator Text Comment Comment Comment Indicator Baseline Current End Target Indicator Name Value Value Value Information on aggregate municipal finances is to be made available at Information on aggregate SUBDERE has reached an Information on aggregate municipal the central level within 30 days instead of presently up to 180 days. municipal finances available in 180 agreement with Contraloria finances available at the central days General de la Republica for the level within 30 days development of the Municipal Public Disclosure Copy Date Date Type Unit of Measure Aggregator 03-Aug-2007 Custom Indicator Text Date Comment Comment 07-Jun-2011 Comment Page 3 of 10 The World Bank Report No: ISR3386 Indicator Baseline Current End Target Public Disclosure Copy Indicator Name Value Value Value Monitoring indicators aligned with financial indicators and integrated in Limited indicators to monitor public Limited indicators to monitor public Monitoring indicators aligned with the budget formulation and execution. New methodology adopted by sector programs sector programs financial indicators and integrated Ministries covered by MCS and integrated in the budget 2011 in the budget formulation and Date Date execution. Type Unit of Measure 03-Aug-2007 07-Jun-2011 Date Custom Indicator Text Comment Comment Indicator was revised in the mid- term review. Waiting for formal Comment approval, to be reported in the Project's restructuring Intermediate Results Indicators Indicator Baseline Current End Target Indicator Name Value Value Value SIGFE's configuration processes have been automated, YR 2-5. Manual configuration processes Indicator achieved SIGFE's configuration processes Date Date automated 03-Aug-2007 07-Jun-2011 Date Type Unit of Measure Comment Comment Custom Indicator Text Comment Indicator Baseline Current End Target Indicator Name Value Value Value Batch interfaces between SIGFE and ChileCompras, BIP of Batch interfaces Full interoperability with Fully automated, real-time data MIDEPLAN and other selected systems have been replaced by full ChileCompra exchange between SIGFE & Date interoperability, YR 2-5. ChileCompras, MIDEPLAN#s BIP 03-Aug-2007 Date and other selected systems Public Disclosure Copy Type Unit of Measure Comment 07-Jun-2011 Date Custom Indicator Text Comment Comment Page 4 of 10 The World Bank Report No: ISR3386 Indicator Baseline Current End Target Public Disclosure Copy Indicator Name Value Value Value Aggregation and consolidation of financial and accounting information Management and operational SUBDERE has reached an Full implementation of from Central Government and Municipalities available within 30 days proposal drafted agreement with Contraloria functionalities in the financial from monthly closing, YR 2-5. General de la Republica for the systems to produce aggregated Date development of the Municipal financial information on the Central Type Unit of Measure 03-Aug-2007 Aggregator Government and Municipalities Custom Indicator Text Comment Date within 30 days. 07-Jun-2011 Date Comment Indicator was revised in the mid- Comment term review. Waiting for formal approval, to be reported in the Project's restructuring Indicator Baseline Current End Target Indicator Name Value Value Value SIAP implemented in DIPRES, including interoperability with SIGFE, Limited integration of SIAP with Bidding documents in preparation. SIAP in operation producing YR 2-5. SIGFE and MCS Terms of reference defined integrated financial and budget Date Date information 03-Aug-2007 07-Jun-2011 Date Type Unit of Measure Custom Indicator Text Comment Comment Comment Indicator Baseline Current End Target Indicator Name Value Value Value Capacity Building in at least 100 municipalities on new Financial 100 Municipalities do not have SIFIM installed in 112 At least 100 Municipalities have Management Systems, YR1-5. financial system, and no municipalities and 10 municipal financial system, and are Public Disclosure Copy municipality is connected to corporations. connected to SIGFE. SIGFE. Information is available in Date Date Type Unit of Measure the National Information of Municipal Financial Administration 07-Jun-2011 Custom Indicator Text in 180 days. Comment Comment Date 03-Aug-2007 Comment Page 5 of 10 The World Bank Report No: ISR3386 Indicator Baseline Current End Target Public Disclosure Copy Indicator Name Value Value Value MCS indicators aligned by 2009. In the 2009 Budget: 18 to 20 new Limited indicators to monitor public Limited indicators to monitor public MCS indicators aligned indicators are integrated sector programs sector programs Date Date Date Type Unit of Measure 03-Aug-2007 07-Jun-2011 Comment Custom Indicator Text Comment Comment Indicator was revised in the mid- term review. Waiting for formal approval, to be reported in the Project's restructuring Indicator Baseline Current End Target Indicator Name Value Value Value Upgraded SIGFE used by the 90% of the CGE that presently use Lack of reliable and timely financial Final version of the system is being Fully integrated, online data SIGFE. The remaining 10% of CGE that operate their own systems information consolidated for the tested. The system will be transfer for 100% of Central should generate fin. info. consistent with SIGFE financial info. entire public sector launched in July 2011 with 51 government's financial information requirement institutions Date Date Type Unit of Measure Date 03-Aug-2007 Custom Indicator Text 07-Jun-2011 Comment Comment Comment Indicator Baseline Current End Target Indicator Name Value Value Value 100 percent automatic interoperability with SIGFE, YR 2-5 No interoperability It was agreed that expenditures 100% interoperability by 2013 Date will be incorporated to SIGFE Date during 2012 03-Aug-2007 Date Public Disclosure Copy Type Unit of Measure Comment Comment 07-Jun-2011 Custom Indicator Text Comment Page 6 of 10 The World Bank Report No: ISR3386 Indicator Baseline Current End Target Public Disclosure Copy Indicator Name Value Value Value Establishment of a new administrative structure and processes to No administrative structure Indicator achieved. Creation of the Creation of the Information institutionalize SIGFE within DIPRES, YR1-5 Information Technology Technology Department Date Department. Date 03-Aug-2007 Date Type Unit of Measure Comment 07-Jun-2011 Comment Custom Indicator Text Comment Indicator Baseline Current End Target Indicator Name Value Value Value New conceptual model implemented for integrating MCS information No model Budget Directorate in the process Model designed and implemented into budget formulation, YR2-5 of defining a new conceptual model within at least 1 or more entities Date 03-Aug-2007 Date Date Type Unit of Measure Comment 07-Jun-2011 Custom Indicator Text Comment Comment Indicator is going to be revised in July once the Government defines the new model Indicator Baseline Current End Target Indicator Name Value Value Value 100 percent of management and control tools are interlinked through No link through an information Budget Directorate in the process 100 percent of management and an information system, YR3-5 system between management and of defining a new conceptual model control tools are interlinked through control tools Date an information system Date 07-Jun-2011 Date Type Unit of Measure 03-Aug-2007 Comment Custom Indicator Text Public Disclosure Copy Comment Indicator is going to be revised in Comment July once the Government defines the new model Page 7 of 10 The World Bank Report No: ISR3386 Indicator Baseline Current End Target Public Disclosure Copy Indicator Name Value Value Value 100 percent of the interfaces identified by conceptual model and No interfaces to make the MCS Budget Directorate in the process 100 percent of the interfaces designed to make the MCS information system interoperate with information system interoperate of defining a new conceptual model identified by conceptual model and SIGFE and SIAP, have been implemented, YR3-5 with SIGFE and SIAP designed to make the MCS Date Date information system interoperate Type Unit of Measure 07-Jun-2011 with SIGFE and SIAP, have been 03-Aug-2007 Comment implemented Custom Indicator Text Comment Indicator is going to be revised in Date July once the Government defines the new model Comment Indicator Baseline Current End Target Indicator Name Value Value Value The indicator of coverage of MCS is quantified and 100 percent No indicator of coverage of MCS Budget Directorate in the process The indicator of coverage of MCS automated, YR 3-5 of defining a new conceptual model is quantified and 100 percent Date Date automated 03-Aug-2007 07-Jun-2011 Date Type Unit of Measure Comment Custom Indicator Text Comment Indicator is going to be revised in Comment July once the Government defines the new model Indicator Baseline Current End Target Indicator Name Value Value Value Integration of the new monitoring indicators in the Budget, by 2012 Monitor indicators are not Budget Directorate in the process Integration of the new monitoring integrated in the budget of defining a new conceptual model indicators in the Budget Date Date Date Public Disclosure Copy Type Unit of Measure 07-Jun-2011 Custom Indicator Text Comment Comment Comment Indicator is going to be revised in July once the Government defines the new model Page 8 of 10 The World Bank Report No: ISR3386 Indicator Baseline Current End Target Public Disclosure Copy Indicator Name Value Value Value Financial info and expenditures on at least 100 municipalities is 100 Municipalities do not have SIFIM installed in 112 At least 100 Municipalities do not available in National Info. Sys. of Municipal Financial Administration, financial management system, and municipalities and 10 municipal have financial management capable to aggregate the financial info of all 345 mun, YR3-5 no municipality is connected to corporations. system, and no municipality is SIGFE Date connected to SIGFE Type Unit of Measure Date Date 07-Jun-2011 Custom Indicator Text Comment Comment Indicator was revised in the mid- Comment term review. Waiting for formal approval, to be reported in the Project's restructuring Indicator Baseline Current End Target Indicator Name Value Value Value Information on aggregated municipal budget expenditures has been No aggregated information on SUBDERE has reached an Information on aggregated reduced from as much as 180 to less than 30 days, YR 3-5 municipal budget expenditures agreement with Contraloria municipal budget expenditures Date General de la Republica for the reduced to less than 30 days development of the Municipal Date Type Unit of Measure Aggregator Custom Indicator Text Comment Date Comment 07-Jun-2011 Comment Indicator Baseline Current End Target Indicator Name Value Value Value Project implementation and coordination as well as the monitoring and The process of monitoring and 2 information exchange workshops 4 information exchange workshops evaluation of the implementation process, FY 1-5 evaluation of the project will take amongst entities which have amongst entities which have Public Disclosure Copy place with a low level of implemented the new transactional implemented the new transactional implementation module module of SIGFE. Type Unit of Measure Date Date Date Custom Indicator Text 03-Aug-2007 07-Jun-2011 Comment Comment Comment Data on Financial Performance (as of 18-May-2011) Financial Agreement(s) Key Dates Project Loan No. Status Approval Date Signing Date Effectiveness Date Closing Date Page 9 of 10 The World Bank Report No: ISR3386 Project Loan No. Status Approval Date Signing Date Effectiveness Date Closing Date P103441 IBRD-74850 Effective 28-Aug-2007 30-Nov-2007 27-Feb-2008 30-Jun-2013 Public Disclosure Copy Disbursements (in Millions) Project Loan No. Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P103441 IBRD-74850 Effective USD 24.80 24.80 0.00 22.71 2.09 92.00 Disbursement Graph Key Decisions Regarding Implementation This ISR is being updated based on the findings of the mid-term review. There are no major issues to disclose. Public Disclosure Copy Restructuring History There has been no restructuring to date. Related Projects Page 10 of 10