Public Disclosure Copy The World Bank Implementation Status & Results Report Public Financial Mgmt Enhancement Project (P152932) Public Financial Mgmt Enhancement Project (P152932) AFRICA | Zimbabwe | Governance Global Practice | Recipient Executed Activities | Investment Project Financing | FY 2016 | Seq No: 4 | ARCHIVED on 01-Dec-2017 | ISR30054 | Implementing Agencies: Ministry of Finance and Econ Devt, Republic of Zimbabwe Key Dates Key Project Dates Bank Approval Date:24-Mar-2016 Effectiveness Date:24-Jun-2016 Planned Mid Term Review Date:29-Jun-2018 Actual Mid-Term Review Date:-- Original Closing Date:30-Jun-2019 Revised Closing Date:30-Jun-2019 Project Development Objectives Project Development Objective (from Project Appraisal Document)

The Project development objective (PDO) is to improve control, transparency and accountability, and oversight in the use of public resource in Zimbabwe. The Project will contribute to enhancing fiscal discipline, strategic allocation of resources, and service delivery efficiency, through strengthened systems, procedures and targeted capacity-building.

Has the Project Development Objective been changed since Board Approval of the Project Objective? No PHRPDODEL Components Name Financial Management and Accounting (including IFMIS):(Cost $6.80 M) Enhance Effectiveness of Internal Controls and Internal Audit:(Cost $3.20 M) Enhance Accountability through Strengthening of External Audit:(Cost $5.00 M) Strengthening the Demand Side of Transparency and Accountability:(Cost $3.00 M) PFMEP Management:(Cost $2.00 M) Project Implementation Support by the World Bank:(Cost $0.80 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO  Moderately Satisfactory  Moderately Satisfactory 12/1/2017 Page 1 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Public Financial Mgmt Enhancement Project (P152932) Overall Implementation Progress (IP)  Moderately Satisfactory  Moderately Satisfactory Overall Risk Rating  Substantial  Substantial Implementation Status and Key Decisions The progress towards achievement of the Project Development Objective (PDO) and the overall implementation progress are rated as ‘moderately satisfactory’. There is improved performance on progress of activities relating to (i) Internal Controls and Internal Audit (Component 2) and consistent good performance on Enhanced Accountability through strengthening of External Audit (Component 3), Strengthening demand side of accountability and transparency (Component 4). Project Management (Component 5) made steady progress. The performance of the largest component - Financial Management and Accounting (Component 1) deteriorated in the absence of clarity of Government’s preferred way forward on key areas. The ratings primarily reflect the progress in terms of activities and the reform impact. The cumulative project disbursements till August 31, 2017 amount to USD 1.42 million. Some of the key achievements since the previous ISR include (i) Establishment of Internal Audit units in all Ministries, training of internal auditors and appointment of Audit Committees in most of the Ministries, (ii) timely submission of audit reports to the parliament by the Auditor General, (iii) trainings and workshops conducted to parliamentary committees and consideration and tabling of report of findings to the National Assembly. Consequent to changes in priorities of the Government on the PFMS (IFMIS) related activities, component 1 has been revised to develop a fresh implementation plan. The revised implementation plan focusing on quick wins alongside with major IFMIS enhancements is now under implementation, with early indications depicting a positive outlook. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance  High  High  High Macroeconomic  Substantial  Substantial  Substantial Sector Strategies and Policies  Moderate  Moderate  Moderate Technical Design of Project or Program  Moderate  Moderate  Moderate Institutional Capacity for Implementation and Sustainability  Substantial  Substantial  Substantial Fiduciary  Substantial  Substantial  Substantial Environment and Social  Low  Low  Low Stakeholders  Moderate  Moderate  Moderate 12/1/2017 Page 2 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Public Financial Mgmt Enhancement Project (P152932) Other  --  --  Low Overall  Substantial  Substantial  Substantial Results Project Development Objective Indicators PHINDPDOTBL  Timely preparation and reporting of annual consolidated financial statement after end of the financial year (month) (Core sector indicator) (Months, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 6.00 -- 4.00 3.00 Date 01-Jun-2016 -- 07-Nov-2017 31-Dec-2019 Comments The financial statements of the year 2016 are prepared and submitted by Accountant General for audit in April 2017. PHINDPDOTBL  Efffectiveness of commitment controls aggregate excess of spending over releses, as a percentage of central Governmnet spending (core sector indicator) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value NA -- 21.00 5.00 Date 31-Dec-2014 01-May-2017 22-Nov-2017 31-Dec-2019 Comments Increase in deviations indicating deterioration in budget credibility in 2016 PHINDPDOTBL  Effectiveness of Internal Audit (number of MDAs covered by Internal Audit Reports (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 10.00 0.00 28.00 30.00 Date 31-Dec-2014 01-May-2017 20-Oct-2017 31-Dec-2019 12/1/2017 Page 3 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Public Financial Mgmt Enhancement Project (P152932) Comments 28 Ministries have internal audit PHINDPDOTBL  Timely completion and submision of audited annual consolidated financial statements to the parliament (months) (core sector indicator) (Months, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 10.00 -- 6.00 6.00 Date 01-May-2015 -- 22-Nov-2017 31-Dec-2019 Comments Audited financial statements for the year 2016 were presented in June 2017 PHINDPDOTBL  Satistaction of Financial reporting available to citizen (witinputs from citizen at workshops) (Percentage satisfied) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value NA -- Not Measured till date 50% Date 02-May-2016 -- 22-Nov-2017 28-Nov-2019 Overall Comments Intermediate Results Indicators 12/1/2017 Page 4 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Public Financial Mgmt Enhancement Project (P152932) PHINDIRITBL  Number of district councils utilizing local government IFMIS for management and reporting (ZIMREF Indicator 2.3.2) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 30.00 Date 18-Jun-2015 -- 09-Nov-2017 28-Nov-2019 Comments Most of the local councils are presently using financial management systems distinct from SAP based PFMS system at central level. Government decided to for the present continue with the local systems, and progressively explore the need for moving to central system. In the reconfigured approach, the local financial management systems will be interfaced with the central PFMS system for seamless data exchange. PHINDIRITBL  Coverage of Internal Audit (% of ministries or agencies) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 10.00 -- 100.00 100.00 Date 16-Nov-2015 -- 22-Nov-2017 25-Dec-2019 Comments All the Ministries now have Internal Audit units PHINDIRITBL  Audit reports debated in the parliament (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 32.00 -- 34.00 40.00 Date 09-Jun-2016 -- 23-Nov-2017 28-Nov-2019 Comments Two Audit reports are debated in Parliament during 2017 supported by PFMEP 12/1/2017 Page 5 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Public Financial Mgmt Enhancement Project (P152932) PHINDIRITBL  Citizen engagement: Number of workshops conducted (cumulative) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 19.00 20.00 Date 01-Jun-2016 -- 22-Nov-2017 25-Oct-2019 Comments One training event for media on parliament business is conducted. Public consultations for national budget for the Committee on Finance and Economic Development were conducted for 18 districts across the country. 680 (46% female) citizens participated in the consultations. PHINDIRITBL  Proportion of IGFs and relevant donor funding reported in annual financial statement (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 15.00 -- 15.00 75.00 Date 06-Oct-2015 -- 06-Oct-2015 28-Nov-2019 Comments Information on the current position not available PHINDIRITBL  number of staff trained, disaggregated by gender (cumulative) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value NA -- 286.00 150.00 Date 06-Jun-2016 -- 22-Nov-2017 28-Nov-2019 Comments The internal audit training of 286 included 86 female and 200 male officials trained. Breakdown is as follows: ESAAG - 6, AFIAA Conference Ghana - 5; IIA Registration and Subscription fees - 146 (CGAP -55, CIA - 25); Audit Committees - 129 12/1/2017 Page 6 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Public Financial Mgmt Enhancement Project (P152932) PHINDIRITBL  Number of audited public financial statements by private sector (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 20.00 -- 79.00 50.00 Date 23-Sep-2015 -- 22-Nov-2017 17-Dec-2019 Comments During 2016 and 2017, PFMEP supported 16 private firm conducted audits and Auditor General using internal resources / other sources organized another 63 private firm conducted audits PHINDIRITBL  Timeliness of submission of audit reports on consolidated financial statements (months) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 12.00 -- 6.00 6.00 Date 04-Jan-2016 -- 22-Nov-2017 26-Dec-2019 Comments Auditor General submitted audit reports to the parliament within 6 months of end of financial year. Overall Comments Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P152932 TF-A1783 Effective USD 10.00 10.00 0.00 1.42 8.58 14% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date 12/1/2017 Page 7 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Public Financial Mgmt Enhancement Project (P152932) P152932 TF-A1783 Effective 24-Mar-2016 04-May-2016 24-Jun-2016 30-Jun-2019 30-Jun-2019 Cumulative Disbursements Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 12/1/2017 Page 8 of 8 Public Disclosure Copy