The World Bank Report No: ISR7115 Implementation Status & Results Liberia LR-Public Financial Management - IFMIS (P109775) Public Disclosure Copy Operation Name: LR-Public Financial Management - IFMIS (P109775) Project Stage: Implementation Seq.No: 3 Status: ARCHIVED Archive Date: 23-Jul-2012 Country: Liberia Approval FY: 2009 Product Line: Recipient Executed Activities Region: AFRICA Lending Instrument: Emergency Recovery Loan Implementing Agency(ies): Key Dates Board Approval Date 02-Feb-2009 Original Closing Date 01-Feb-2012 Planned Mid Term Review Date 28-Feb-2011 Last Archived ISR Date 09-Jul-2011 Effectiveness Date 20-Mar-2009 Revised Closing Date 31-May-2012 Actual Mid Term Review Date 20-May-2011 Project Development Objectives Project Development Objective (from Project Appraisal Document) 'to improve the efficiency of the Government’s accounting system through the provision and installation of a computerized financial management information system in the Ministry of Finance and through strengthening manual accounting systems in line ministries and counties' Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Provision of an IFMIS 3600000.00 Upgrade of Manual Accounting System 100000.00 Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Public Disclosure Copy Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Substantial Substantial Implementation Status Overview The objective of the project is: to improve the efficiency of the Government's accounting system through the provision and installation of a computerized financial management information system in the Ministry of Finance and through strengthening manual accounting systems in line ministries and counties. The project closed on May 31, 2012. Overall, the project development objectives have been achieved. The Free Balance core budget and treasury applications went live in July 2012. This has enabled the following envisaged outcomes to be achieved: (i) fully operational, modern computerized accounting system in the Ministry of Finance that is capable of producing complete, accurate, and reliable financial statements for the GoL and (ii) smooth budget execution through improved systems for budget allotment, commitment control, procurement, cash planning, and reporting. Although the third outcome, better management of human resources, has not been fully achieved as of the project close date, substantial progress has been made towards the Page 1 of 5 The World Bank Report No: ISR7115 development of the HRMIS module that is expected to be completed by December 31, 2012. With over 24 of 29 M&As personnel records cleaned and biometrically verified, the GoL agreed to a phased implementation of GoL payroll processing. Through an incremental enrollment approach, the government will run the payroll of all its 42,000 plus employees in IFMIS by June 30, 2012, whilst the data cleaning continues until December 2012 to allow the full implementation of the HRMIS module. Public Disclosure Copy Moreover, although not originally conceived under the project, the GoL has made significant progress during project life towards a roll-out the IFMIS system to nine M&As by July 1, 2012. Lastly, a fully functioning data center with a common ICT platform has been developed to support the IFMIS application and other ICT needs of the GoL within the Ministry of Finance. Locations No Location data has been entered Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Reduction in number of days taken to process Number Value 14.00 4.00 4.00 payment vouchers. Date 31-Dec-2009 20-May-2011 31-Jan-2012 Comments Number of Days Number of days No of Days Improvement in the effectiveness of payroll Text Value PEFA PI-18 Score 'D+' PEFA PI-18 Score 'D+' PEFA PI-18 Score C+ controls, as measured by PEFA indicator 18. Date 31-Dec-2009 20-May-2011 31-Jan-2012 Comments PEFA PI-18 Score 'D' PEFA PI-18 Score 'C' PEFA PI-18 Score C+ Regularity and timeliness of account Number Value 25.00 5.00 5.00 reconciliations improved. Date 31-Dec-2009 31-May-2011 31-May-2012 Comments Days Bank reconciliation for all Days centrally managed bank accounts take place at the end of the each month. System generated reports are run within 5 days. Improvement in quality of in-year budget Text Value PEFA PI-24 Score 'C' PEFA PI-24 Score 'D+' PEFA PI-24 Score 'B' Public Disclosure Copy reports as measured by PEFA indicator 24. Date 31-Dec-2009 31-May-2012 31-May-2012 Comments PEFA PI-24 Score 'C' Improved quality and PEFA PI-24 Score 'B' coverage of in-year budget information will depend on effective use of IFMIS for financial recording and reporting, and effective bank reconciliation under IFMIS. The in-year budget reports for FY2010/11 were compiled Page 2 of 5 The World Bank Report No: ISR7115 from different sources in a fragmented arrangement but with introduction of an IFMIS system this situation will soon Public Disclosure Copy be ameliorated. Reduction in number of months taken from Months Value 0.00 18.00 12.00 close of the fiscal year to submit external audit Date 31-Dec-2009 31-May-2012 31-May-2012 reports to the legislature. Comments No reports submitted IFMIS went live in July 2011. Reports to be submitted The first full year of the within 6-12 months of FY end. systems operation will be June 30, 2012. First final account from the system is yet to be prepared. Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Number of departments/units where IFMIS is Number Value 0.00 2.00 3.00 operational. Date 31-Dec-2009 18-Jun-2010 31-Jan-2012 Comments IFMIS Roll out to IFMIS is live at the CAGD and IFMIS Roll out to Departments and Units Budget Department in MoF. Departments and Units HRMIS is active, not comprehensively, at CSA. In-year reports are generated using IFMIS and Text Value 0 10 10 published. Date 31-Dec-2009 20-May-2011 31-Jan-2012 Comments Report generation is manual Reports generated through Reports generated by the but publication not regular interim IT system but IFMIS and published within 10 publication remains irregular. days of month-end. Some reports generated include monthly budget performance reports generated from IFMIS and Public Disclosure Copy shared with M&As, Consolidated quarterly financial reports. Information is generated from the TAS (for revenues), IFMIS (for expenditures on goods and Services excluding Liberian dollar payroll) and GAPs (for Liberian dollar payroll). Page 3 of 5 The World Bank Report No: ISR7115 Percentage of civil servants registered in the Percentage Value 0.00 80.00 75.00 HRMIS Date 31-Dec-2009 20-May-2011 31-Jan-2012 Comments HRMIS not fully functional HRMIS only beginning to Full productivity of HRMIS as Public Disclosure Copy function. IFMIS module Number of days taken to process payment Days Value 14.00 4.00 4.00 vouchers Date 31-Dec-2009 31-May-2012 31-May-2012 Comments Number of days taken to Number of days taken to Number of days taken to process payment vouchers process payment vouchers process payment vouchers % of spending units that are using the new and Percentage Value 0.00 90.00 90.00 simplified accounting manual Date 31-Dec-2009 31-May-2012 31-May-2012 Comments No simplified accounting 90% transactions of the Simplified accounting manual manual in place consolidated fund via the publicly available IFMIS – an upgrade from the traditional spending unit manual accounting processes. % of spending units where improved cash Percentage Value 0.00 100.00 90.00 books are in use Date 31-Dec-2009 31-May-2012 31-May-2012 Comments Very basic and mundane Centralized cash Spending units have complete cash books in use management and systems knowledge and control of their based cash book covering all cash situation through GoL consolidated fund improved book keeping. transactions. Data on Financial Performance (as of 13-Jun-2012) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P109775 TF-93735 Closed 24-Feb-2009 24-Feb-2009 20-Mar-2009 01-Feb-2012 31-May-2012 Public Disclosure Copy Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P109775 TF-93735 Closed USD 3.70 3.70 0.00 3.42 0.28 92.00 Disbursement Graph Page 4 of 5 The World Bank Report No: ISR7115 Public Disclosure Copy Key Decisions Regarding Implementation No comments entered. Restructuring History Level two Approved on 19-Jan-2012, Level two Approved on 30-Mar-2012 Related Projects There are no related projects. Public Disclosure Copy Page 5 of 5