The World Bank Implementation Status & Results Report Ghana: Public Financial Management Reform Project (P151447) Ghana: Public Financial Management Reform Project (P151447) AFRICA WEST | Ghana | Governance Global Practice | IBRD/IDA | Investment Project Financing | FY 2015 | Seq No: 13 | ARCHIVED on 25-Aug-2021 | ISR47333 | Implementing Agencies: Government of Ghana, Ministry of Finance Key Dates Key Project Dates Bank Approval Date: 15-May-2015 Effectiveness Date: 18-Aug-2015 Planned Mid Term Review Date: 31-Oct-2017 Actual Mid-Term Review Date: 22-Nov-2017 Original Closing Date: 30-Jun-2019 Revised Closing Date: 31-Dec-2021 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The project development objective (PDO) is to improve the budget management, financial control and reporting of the Government of Ghana. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Enhancing Budget Credibility:(Cost $1.72 M) Public Financial Management Systems and Control:(Cost $38.78 M) Reinforcing Financial Oversight and Accountability:(Cost $3.90 M) PFM Reform Coordination and Change Management:(Cost $3.40 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Moderate Moderate Implementation Status and Key Decisions The overall progress towards the achievement of the Project Development Objective (PDO) is Satisfactory. The slight dent in PDO3 needs to be rectified through an active follow-up with Public Accounts Committee, Parliament Secretariat, and the Ghana Audit Service. The intermediate results indicators have been met except for those due at the end of 2021, and which are mostly delayed due to slow-down caused by the pandemic. The progresses in HRMIS and GIFMIS have been noteworthy, exceeding the target. Lack of disbursement under the SECO TF had been an issue, but has now been resolved and will expedite the activities related to IPSAS readiness The SECO TF was declared effective in February 2019 with an approved allocation of $2,350,000 to support the implementation of IPSAS and related financial reporting activities. The activities include Chart of Accounts revision, GIFMIS update to meet IPSAS requirements, fixed assets register, and IPSAS trainings. Furthermore, the following issues require quick action by the authorities between now and the project closing to fully achieve the PDO: 8/25/2021 Page 1 of 7 The World Bank Implementation Status & Results Report Ghana: Public Financial Management Reform Project (P151447) 1. A new 5-year PFM Strategy which was originally planned to be completed in 2020, has not yet been published. A new draft covering years 2021-2025 is now prepared and is expected to be published in 2021. 2. A Fiscal and Budget office was established after the passage of the Fiscal Responsibility Law, whose mission is to advise the legislature on the social and financial impact of bills and policies that are taken to the legislature for adoption. The office needs to be adequately budgeted and operationalized. 3. Gaps still remain in GIFMIS compliance with IPSAS, including the need for reconfiguration of the GIFMIS fixed Assets Module, update to the Chart of Accounts (COA), implementation of the Inventory module, and implementation of the Receivable module. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Substantial Substantial Substantial Macroeconomic High Substantial Substantial Sector Strategies and Policies Substantial Substantial Substantial Technical Design of Project or Program Moderate Moderate Moderate Institutional Capacity for Implementation and Moderate Moderate Moderate Sustainability Fiduciary Substantial Moderate Moderate Environment and Social Low Low Low Stakeholders Low Low Low Other -- -- -- Overall Substantial Moderate Moderate Results PDO Indicators by Objectives / Outcomes Proportion of Budgetary expenditures in Annual Financial Statements of CAGD(including Consolidated IN01010913 ►Proportion of budgetary expenditures in Annual Financial Statements of CAGD (including Consolidated Funds, Statutory Funds, Internally Generated Funds and Donor Funds) processed through GIFMIS (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 98.99 98.99 90.00 Date 22-Nov-2019 30-Sep-2020 30-Sep-2020 31-Dec-2021 The indicator could not be updated as the 2020 Annual Financial Report, to be prepared by CAGD, is not Comments: yet publicly available. 8/25/2021 Page 2 of 7 The World Bank Implementation Status & Results Report Ghana: Public Financial Management Reform Project (P151447) IN01010915 ►Percentage of Central GOG Cash Cash accounts in TSA at Bank of Ghana (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 100.00 90.00 90.00 Date 31-Dec-2020 30-Sep-2020 28-May-2021 31-Dec-2021 The previous actual value (30-Sep-2020) was collected during the first wave of data collection by the Comments: GIFMIS secretariat and was provisional. IN01010916 ►Limitation in supplementary appropriations (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 6.20 8.09 8.08 3.00 Date 16-Jul-2015 30-Sep-2020 28-May-2021 31-Dec-2021 Steps taken to mainstream Programme-Based Budgeting (PBB), including the review of the PBB Manual and implementation of related training, are expected to enhance budget credibility. Furthermore, the World Comments: Bank Task Team is recommending to introduce hard budget ceilings for each FY to be set upfront by the Ministry of Finance (MoF). No supplementary appropriations are made for the annual budget IN01010912 ►Percentage of payroll subjected to annual payroll verification (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 100.00 100.00 100.00 Date 16-Jul-2015 30-Sep-2020 28-May-2021 31-Dec-2021 IN01010914 ►Expenditure arrears as a percentage of Central Goverment budgetary expenditures (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 19.70 0.92 1.07 10.00 Date 16-Jul-2015 30-Sep-2020 28-May-2021 31-Dec-2021 Intermediate Results Indicators by Components Enhancing Budget Credibility IN01010917 ►Number of MDAs reporting ex-post on program performance (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target 8/25/2021 Page 3 of 7 The World Bank Implementation Status & Results Report Ghana: Public Financial Management Reform Project (P151447) Value 0.00 45.00 45.00 45.00 Date 03-Aug-2015 30-Sep-2020 28-May-2021 31-Dec-2021 IN01010920 ►Percentage of Budgetary Spending Units submitting Cash forecasting plans (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 40.00 96.00 95.83 85.00 Date 15-Jul-2016 30-Sep-2020 28-May-2021 31-Dec-2021 IN01010923 ►MDAs integrating procurement planning as part of budget preparation process (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 7.00 45.00 45.00 45.00 Date 17-Jul-2015 30-Sep-2020 28-May-2021 31-Dec-2021 Public Financial Management Systems and Control IN01010918 ►GIFMIS expenditure management functionality established in MMDAs(for CF, statutory and IGFs (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 5.00 260.00 260.00 160.00 Date 17-Jul-2015 30-Sep-2020 28-May-2021 31-Dec-2021 IN01010921 ►Percentage of Public Service staff captured on the HRMIS (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 26.43 88.00 88.00 86.00 Date 17-Jul-2015 30-Sep-2020 28-May-2021 31-Dec-2021 IN01010924 ►Strengthening the internal audit institution and capacity through establishment of internal audit teams in MDAs focusing on risk-based and systemic issues (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 30.00 30.00 25.00 Date 17-Jul-2015 30-Sep-2020 28-May-2021 31-Dec-2021 IN01010925 ►Number of Government Staff that have completed IPSAS Business Process Training (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target 8/25/2021 Page 4 of 7 The World Bank Implementation Status & Results Report Ghana: Public Financial Management Reform Project (P151447) Value 0.00 0.00 2,500.00 250.00 Date 01-Mar-2019 30-Sep-2020 19-Aug-2021 31-Dec-2021 1,665 male and 835 female Comments: IN01010926 ►Percentage of Government staff who are female (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 35.00 33.40 45.00 Date 01-Mar-2019 30-Oct-2020 19-Aug-2021 31-Dec-2021 IN01010927 ►Unified chart of accounts prepared to meet GFS.budget and IPSAS needs;operational policies for GFS, PIM, and budget established (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target No unified chart of No unified chart of Evidence of the accounts prepared to accounts prepared to establishment of meet GFS, budget and meet GFS, budget and unified chart of No existence of unified IPSAS needs; IPSAS needs; accounts prepared to Value chart of accounts operational policies for operational policies for meet GFS, budget and GFS, PIM, and budget GFS, PIM, and budget IPSAS needs; established and established and operational policies for approved. approved. GFS,PIM Date 01-Mar-2019 22-Nov-2019 28-May-2021 31-Dec-2021 Two TORs - one for design and another for implementation - of the COA have been developed, and Comments: consultants are expected to be mobilized. IN01010928 ►Preparation Opening 2020 Balance sheet (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Evidence of 2020 Value No No No balance sheet IPSAS compliant Date 24-May-2019 30-Apr-2020 28-May-2021 31-Dec-2021 This indicator has not yet been met. As a first time adopter of accrual accounting, the country will be permitted to apply transitional exemptions and provisions that may impact fair presentation-mostly in the first three years. Where these transitional exemptions and provisions have been determined and are applied, Ghana will be required to disclose information about the transitional exemptions and provisions Comments: adopted, and progress towards fair presentation and compliance with accrual basis IPSASs. Opening balance work will only happen after preliminary aspects of determining the accuracy of the opening balances have been done. Reinforcing Financial Oversight and Accountability IN01010919 ►Average time taken to complete external audit of MMDAs using modern audit techniques. (Months, Custom) Baseline Actual (Previous) Actual (Current) End Target 8/25/2021 Page 5 of 7 The World Bank Implementation Status & Results Report Ghana: Public Financial Management Reform Project (P151447) Value 12.00 6.00 6.00 6.00 Date 17-Jul-2015 30-Sep-2020 28-May-2021 31-Dec-2021 IN01010922 ►Strengthened Parliamentary Oversight Capacity (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Lack of analytical Published PAC reviewed Published PAC Published PAC capacity to review audit reports within 12 reviewed audit reports reviewed audit reports Value budgets ex ante and months of end of year of within 15 months of within 12 months of audit reports audit. end of year of audit. end of year of audit. implementation Date 17-Jul-2015 30-Jun-2020 28-May-2021 31-Dec-2021 The capacity of the Public Accounts Committee (PAC) of Parliament has been strengthened as a result of Comments: the interventions of the Project which will, over time, lead to reduced number of months. Performance-Based Conditions Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P151447 IDA-56400 Effective USD 45.00 45.00 0.00 45.56 0.00 100% P151447 TF-A8960 Effective USD 2.35 2.35 0.00 1.50 0.85 64% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P151447 IDA-56400 Effective 15-May-2015 05-Aug-2015 18-Aug-2015 30-Jun-2019 31-Dec-2021 P151447 TF-A8960 Effective 11-Feb-2019 25-Feb-2019 25-Feb-2019 31-Dec-2020 31-Dec-2021 Cumulative Disbursements 8/25/2021 Page 6 of 7 The World Bank Implementation Status & Results Report Ghana: Public Financial Management Reform Project (P151447) PBC Disbursement Achievement Disbursed amount in Disbursement % PBC ID PBC Type Description Coc PBC Amount Status Coc for PBC Restructuring History Level 2 Approved on 15-Sep-2020 ,Level Approved on 23-Nov-2020 Related Project(s) P162886- AF - Ghana: Public Financial Management Reform Project - Additional Financing 8/25/2021 Page 7 of 7