Public Disclosure Copy The World Bank Implementation Status & Results Report Maldives: PFM Systems Strengthening Project (P145317) Maldives: PFM Systems Strengthening Project (P145317) SOUTH ASIA | Maldives | Governance Global Practice | IBRD/IDA | Specific Investment Loan | FY 2014 | Seq No: 2 | ARCHIVED on 30-Jun-2015 | ISR20114 | Implementing Agencies: Ministry of Finance and Treasury Key Dates Key Project Dates Board Approval date:26-Jun-2014 Effectiveness Date:02-Oct-2014 Planned Mid Term Review Date:20-Mar-2017 Actual Mid-Term Review Date:-- Original Closing Date:31-Jul-2019 Revised Closing Date:31-Jul-2019 Project Development Objectives Project Development Objective (from Project Appraisal Document) The proposed project development objectives (PDO) are to enhance budget credibility, transparency, and financial reporting of central government finances. Has the Project Development Objective been changed since Board Approval of the Project Objective? No PHRPDODEL Components Name Contingency:(Cost $0.10 M) Strengthening the PFM Environment:(Cost $1.45 M) Strengthening Budget Execution:(Cost $4.40 M) Project Management:(Cost $0.55 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO  Satisfactory  Satisfactory Overall Implementation Progress (IP)  Satisfactory  Satisfactory Overall Risk Rating  --  Substantial 6/30/2015 Page 1 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Maldives: PFM Systems Strengthening Project (P145317) Implementation Status and Key Decisions Overall implementation status is satisfactory. 31% of the funds have been committed and 55% of the consultancy contracts have been awarded during the first year of implementation to date. It was agreed that with the commencement of technical work, the PMU will continue to play a key role in coordinating with both the internal and external stakeholders. Regular technical committee meetings within the MoFT will be held, the PFM steering committee will meet often to provide strategic guidance on project implementation and stakeholder discussions will be held on the legal and budget reform agendas. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance  --  --  High Macroeconomic  --  --  Substantial Sector Strategies and Policies  --  --  Substantial Technical Design of Project or Program  --  --  Moderate Institutional Capacity for Implementation and Sustainability  --  --  Moderate Fiduciary  --  --  Moderate Environment and Social  --  --  Low Stakeholders  --  --  High Other  --  --  -- Overall  --  --  Substantial 6/30/2015 Page 2 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Maldives: PFM Systems Strengthening Project (P145317) Results Project Development Objective Indicators PHINDPDOTBL  Deviation between aggregate expenditure out turn and the original approved budget (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 10.00 -- 0.04 5.00 Date 31-Dec-2013 -- 31-Dec-2014 31-Jul-2019 Comments Both the base line and the current status is based on unaudited information. The audited financial statements for FY 2013 are expected by the end of 2015. The results were be verified against this information. PHINDPDOTBL  Public Access to Key Fiscal Information (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Public disclosure of (1) Complete set of annual budget documents when they are submitted to legislature. Documents not made (2) Monthly in- available to the public: year budget (1) Year-end state financial execution statements of the Republic reports within of Maldives; (2) In-year Y1 taget is met. Budget one month of budget execution reports; Documentation for 2015 completion. Value Same as baseline (3) Contracts awarded. is published in the MoF Website. (3) Info Budget documents and concerning resources available to resources primary service units are available to available in public domain. primary service units at least annually or available on request for primary service units with national coverage in at least 2 sectors. 6/30/2015 Page 3 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Maldives: PFM Systems Strengthening Project (P145317) (4)Year-end financial statements of the Republic of Maldives published within 6 months of completed audit. (5) Contracts awarded above US$100,000 published at least quarterly. Date 28-Feb-2014 -- 31-Dec-2014 31-Jul-2019 PHINDPDOTBL  Quality of debt data recording and reporting. (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Domestic and foreign debt records are complete, includes In progress. CS-DRMS payable has been upgraded and amount the data reconciled as of Annual statement of debt updated and December 2014. A first covering domestic and reconciled template of the annual Value external debt is prepared, -- quarterly. debt report is available but there are gaps and Comprehensive and will be tailored reconciliation problems. management based on the and statistical requirements of the reports MoFT. (covering debt service, stock and operations) are produced at least annually. Date 28-Feb-2014 -- 28-May-2015 31-Jul-2019 PHINDPDOTBL  Coverage and quality of the internal audit function (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target YI target met. Out of 7 The internal There is no internal audit mega ministries 4 have audit function is Value focused on systems Same as the base line established internal operational in monitoring. audit units and these 100% of CGEs units are functioning. with revenues 6/30/2015 Page 4 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Maldives: PFM Systems Strengthening Project (P145317) System reviews in the and/or areas of receivables and expenditures assets/inventories have over Rf 500 been undertaken and million, and recommendations to internal audit improve processes have undertakes been provided in the some systems reports. reviews (at least 20% of staff time). Date 28-Feb-2014 -- -- 31-Jul-2019 Overall Comments Overall there is satisfactory progress made in achieving Y1 results. Intermediate Results Indicators PHINDIRITBL  Coherent set of PFM laws and regulations (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Draft proposal for revised PFM laws prepared and presented to Parliament. YI Target achieved: Draft laws exist Consultant hired; that support the analysis undertaken and Value NIL Same as baseline timely initial draft report with preparation sequencing and andpublic timelines completed. dissemination of key reports, fill gaps, and remove inconsistencies in regulations. Date 28-Feb-2014 -- 28-May-2015 31-Jul-2019 PHINDIRITBL  Decreased variation in expenditures out-turn : within year (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 10.00 10.00 10.00 5.00 Date 28-Feb-2014 -- 31-Dec-2014 31-Jul-2019 6/30/2015 Page 5 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Maldives: PFM Systems Strengthening Project (P145317) PHINDIRITBL  Reduced variance of the composition of expenditure from the original budget (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 20.00 20.00 20.00 12.00 Date 28-Feb-2014 -- 31-Dec-2014 31-Jul-2019 PHINDIRITBL  Increased capacity on macro fiscal planning (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Credible macro fiscal framework exists and used for budget preparation. Final macro fiscal 100% of the staff forecasting tool received the basic exists and training and 75% (3 used. 0% of staff trained on staff) of the EDPD have macro fiscal planning. undergone the Final Value Same as baseline advanced training. In framework No credible MTFF and addition 19 staff from the exists and used framework for assessing MoFT, central bank and for assessing investment projects exists. other institutions have economic been trained in the viability and MTFF. prioritization of public investment projects 100% of staff trained on all aspects of macro fiscal planning. Date 28-Feb-2014 -- 28-May-2015 31-Jul-2019 6/30/2015 Page 6 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Maldives: PFM Systems Strengthening Project (P145317) PHINDIRITBL  Increased capacity on debt and cash management (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target 100% of staff The hiring of the trained on debt consultants took longer and cash than anticipated. The management DMS training will be 0% of staff trained on cash undertaken in the and debt management second visit of the middle-office consultant Credible DMS that is in September Credible DMS does not exists and Value Same as baseline 2015. exist. implemented. Consultancy regarding CFF plan the CFF model exists: development will be CFF model does not exist. prepared for undertaken once the fiscal year and Business Process updated Review is undertaken. monthly based on CFF model. Date 28-Feb-2014 -- -- 31-Jul-2019 PHINDIRITBL  Timely and comprehensive in-year budget execution reports (BERs) produced (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target System- (1) 68% of the business generated areas trained on MM. monthly BERs TPAD plans to complete with information the roll out and training on actual by October 2015. expenditures vs budget, plus (2) BERs are being commitments Value NIL Same as baseline generated via the produced and system now. Up to date reconciled for bank reconciliation are all business also required to enhance areas and the credibility of the consolidated by BERs. MOFT within 2 weeks of end of month. Date 28-Feb-2014 -- 28-May-2015 31-Jul-2019 6/30/2015 Page 7 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Maldives: PFM Systems Strengthening Project (P145317) PHINDIRITBL  BERs subjected to audit by internal auditors (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 100.00 Date 28-Feb-2014 -- 28-May-2015 31-Jul-2019 PHINDIRITBL  Timely preparation of annual financial statements (AFS) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target IPSAS training as not commenced. SAP System- training for generating generated AFS AFS not accepted by audit Audit of F/Ss for FY AFS has taken place. submitted to Value as complete and ready for end 2012 is ongoing. SAP functional upgrades audit within 4 audit. have been implemented months from that makes it possible to year end. generate AFS via SAP. Date 28-Feb-2014 -- -- 31-Jul-2019 PHINDIRITBL  Enhance payroll controls (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Initial discussions have been completed and Establishment No integration and agreement reached registers that reconciliation between between CSC and MoFT drive payroll Value Same as baseline personnel records and for an interface between through payroll data SAP payroll and the integrated software used in Civil system exists. Service Commission. Date 28-Feb-2014 -- 28-May-2015 31-Jul-2019 PHINDIRITBL  Procurement performance and monitoring system (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Partial Achievement: The Public Procurement 100% of Division has a newly contract awards Value NIL Same as baseline established section meet required named “Standards, M&E Procedures & standards. Frameworks Section” 6/30/2015 Page 8 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Maldives: PFM Systems Strengthening Project (P145317) (SPFS). The SPFS has essentially the same mandate envisaged for the Procurement Policy Section. Staff needs to be recruited and employed at the newly established section. Date 28-Feb-2014 -- 28-May-2015 31-Jul-2019 PHINDIRITBL  Improved communication of project activities (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Communication strategy exists Communication strategy has not been developed. All planned Awareness and consultation consultation workshops workshops held on the changes to the for legal and budget process are not business yet held. A number of process review No PFM communi-cation consultations with key Value Same as baseline strategy stakeholders including Fifteen change the public accounts management committee was held workshops for during the legal review. key Continuous engagement stakeholders is needs until the draft held in total by bills are presented to end of FY5. parliament. stakeholders held in total by end of FY5. Date 28-Feb-2014 -- 28-May-2015 31-Jul-2014 Overall Comments Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P145317 IDA-H9510 Effective XDR 4.30 4.30 0.00 1.55 2.75 36% Key Dates (by loan) 6/30/2015 Page 9 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Maldives: PFM Systems Strengthening Project (P145317) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P145317 IDA-H9510 Effective 26-Jun-2014 17-Aug-2014 02-Oct-2014 31-Jul-2019 31-Jul-2019 Cumulative Disbursements Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 6/30/2015 Page 10 of 10 Public Disclosure Copy