The World Bank Implementation Status & Results Report BELARUS PUBLIC FINANCIAL MANAGEMENT MODERNIZATION PROJECT (P146997) BELARUS PUBLIC FINANCIAL MANAGEMENT MODERNIZATION PROJECT (P146997) EUROPE AND CENTRAL ASIA | Belarus | Governance Global Practice | IBRD/IDA | Investment Project Financing | FY 2016 | Seq No: 9 | ARCHIVED on 18-Mar-2020 | ISR40774 | Implementing Agencies: Ministry of Finance, Data-Processing Center Key Dates Key Project Dates Bank Approval Date: 28-Mar-2016 Effectiveness Date: 27-Jul-2016 Planned Mid Term Review Date: 13-Jul-2018 Actual Mid-Term Review Date: 13-Jul-2018 Original Closing Date: 30-Sep-2019 Revised Closing Date: 30-Jul-2021 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) To improve policy alignment of the budget, consolidate cash balances, improve budget transparency and lay foundations for implementation of an Integrated Financial Management Information System (FMIS) Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Budget management regulations and procedures:(Cost $3.06 M) PFM IT solutions:(Cost $5.73 M) Change management:(Cost $1.18 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Substantial Moderate Implementation Status and Key Decisions The Loan Agreement between the World Bank and Belarus was signed on April 1, 2016, to support the implementation of the Public Financial Management Modernization Project. The US$10 million loan aims to improve policy alignment of the budget, consolidate cash balances, improve budget transparency and lay foundations for the implementation of an Integrated Financial Management Information System (FMIS). The project’s closing date has been extended from September 30, 2019 to July 30, 2021, which will allow for the achievement of all four Project Development Objectives (PDO) indicators. During 2018, the authorities of Belarus had taken important decisions on the high-level design of the future FMIS and the structure of a Unified Chart of Accounts. During 2019, the Concept for the Public Sector Accounting and Reporting Reform, including the Unified 3/18/2020 Page 1 of 8 The World Bank Implementation Status & Results Report BELARUS PUBLIC FINANCIAL MANAGEMENT MODERNIZATION PROJECT (P146997) Chart of Accounts was approved, and the Concept for the Modernization of the Internal Financial Control and Audit in the Public Sector was developed. It is worth mentioning that the decision to change the project overall risk from Substation to Moderate was made after the Aide Memoire corresponding to the latest implementation support mission was finalized and submitted to the MoF. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Moderate Moderate Moderate Macroeconomic Substantial Substantial Substantial Sector Strategies and Policies Substantial Moderate Moderate Technical Design of Project or Program Moderate Moderate Moderate Institutional Capacity for Implementation and Substantial Substantial Moderate Sustainability Fiduciary Moderate Substantial Moderate Environment and Social Low Low Low Stakeholders Moderate Moderate Moderate Other -- -- -- Overall Substantial Substantial Moderate Results PDO Indicators by Objectives / Outcomes Improve policy alignment of the budget IN00811801 ►Improved alignment of policies and budgets (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 16.00 59.90 63.50 50.00 Date 01-Jan-2015 19-Jul-2019 31-Jan-2020 30-Jul-2021 The end target value has been achieved and exceeded, and is expected to be sustained by the project’s Comments: closing date. Consolidate cash balances IN00811802 3/18/2020 Page 2 of 8 The World Bank Implementation Status & Results Report BELARUS PUBLIC FINANCIAL MANAGEMENT MODERNIZATION PROJECT (P146997) ►Increase the level of consolidation of cash balances (by reducing balances outside of TSA) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 11.00 7.80 6.90 7.00 Date 31-Dec-2014 19-Jul-2019 01-Oct-2019 30-Jul-2021 The indicator is on track to be achieved. As of October 1, 2019, the actual share of cash balances managed outside of the TSA was 6.93% of the republican budget expenditures. The indicator to be Comments: measured annually and the final data for CY19 will be available by the end of March 2020. Improve budget transparency IN00811803 ►Improved budget transparency (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Citizens budgets for 2018, 2019 and 2020 Citizens budget is were developed and published online on published on the annual basis and MoF’s webpage includes information on starting in 2017, budget execution Citizens budgets for 2018 including dis- disaggregated at the and 2019 were aggregated level of approved developed and posted on information on the budget;information on the MoF’s webpage in approved budget. medium term financial Citizens budget has not 2017 and 2018. Oblast Oblast level Value program; and analysis been prepared. level subnational subnational of links between governments publish governments publish financing and results. their versions of citizens their versions of Citizens’ questions and budgets starting with citizens budgets feedback are 2018. starting in 2018. published on Information on the website along with financial and results responses of the MoF indicators of state to frequently asked programs was questions. included in the citizens budget for 2020. Date 31-Dec-2015 19-Jul-2019 31-Jan-2020 30-Jul-2021 Achieved and expected to be sustained by the project’s closing date. The fiscal data portal went live in January 2018 public with access to interactive fiscal data on budget execution. Exceeding the requirements of the indicator, the Mo quarterly bulletins on the execution of the consolidated budget, as well as republican and local budgets. English and Comments: tablets versions of the fiscal data portal are also available. Information on the performance of individual state program ministries, consolidated information is available on the Ministry of Economy’s website (implemented without support f Lay foundations for implementation of FMIS IN00811804 ►Foundations for FMIS (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Future business The FMIS High Level The MoF had re- Bidding documents for Value processes to be Design was approved by advertised the GFMIS FMIS are prepared 3/18/2020 Page 3 of 8 The World Bank Implementation Status & Results Report BELARUS PUBLIC FINANCIAL MANAGEMENT MODERNIZATION PROJECT (P146997) supported by IFMIS are the MoF on June 26, design consultancy in based on approved not fully defined. 2018. Tender for the September 2019, revised business detailed FMIS design, followed by processes and Unified including the unsuccessful attempt Chart of Accounts and development of the new that was canceled in cover the following business processes and March 2019. The functionality including bidding documents, was short-listing was planning,execution, unsuccessful and was completed in financial control, canceled in March 2019. December 2019 and accounting and The indicator is the opening of reporting, debt achievable only with the technical proposals management. project closing date was due February 19, extension. 2020. It is expected that the contract is signed by the end of June 2020 at the latest. Date 31-Dec-2015 19-Jul-2019 31-Jan-2020 30-Jul-2021 The timeline for achieving the indicator had been extended to July 2021. Comments: Intermediate Results Indicators by Components Budget management regulations and procedures IN00811805 ►Conceptual framework for public sector accounting reform (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target The Concept for reforming national public The MoF prepared the accounting and reporting Public sector drafts of the first four and initial plan for its accounting reform Public sector accounting public sector implementation were implementation reform is defined as a accounting standards, approved by the launched by finalizing Value priority in PFM Strategy, which will be revised Government on February development of first 3- but the reform direction is by the consulting firm 9, 2019. A more detailed 4 accounting not defined. to ensure their implementation plan is standards compliant compliance with expected to be approved with IPSAS IPSAS. by the MoF in the near time. Date 31-Dec-2015 19-Jul-2019 31-Jan-2020 30-Jul-2021 On track to be achieved. The Concept for Public Sector Accounting and Reporting Reform was approved on February 9, 2019. In turn, the Unified Chart of Accounts and methodology for its piloting was also approved by the Government on November 29, 2019. The MoF prepared the drafts of the first four Comments: public sector accounting standards, which will be revised by the consulting firm to ensure their compliance with IPSAS by the end of November 2020. IN00811807 ►Program budgeting methodology (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Work on revising the Program budgeting Work on revising the Program budgeting Value methodology is methodology does not methodology is ongoing. methodology is ongoing. 3/18/2020 Page 4 of 8 The World Bank Implementation Status & Results Report BELARUS PUBLIC FINANCIAL MANAGEMENT MODERNIZATION PROJECT (P146997) clearly link objectives approved, allows and resources. looking at different social dimensions, including gender, in selected relevant programs. Date 31-Dec-2015 19-Jul-2019 31-Jan-2020 30-Jul-2021 Currently delayed, but still achievable by the revised project’s closing date. Assessment of the target indicators of the state programs was one of the deliverables under the medium-term and program budgeting consultancy that was completed in August 2019. Draft amendments to the current methodology for development, financing, and execution of state programs were prepared by the Ministry of Economy Comments: independently of the project and are expected to be approved in the near future. Further improvements of the program budgeting methodology are expected to be introduced in the new cycle of state programs which starts in 2021. PFM IT solutions IN00811806 ►Integration of budget and financial reporting based on international standards (Text, Custom) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Unified Chart of The Unified Chart of Methodological basis for The structure of the Accounts integrated Accounts (UCoA), public sector financial public sector Unified with the budget including methodology and budget reporting has Chart of Accounts classification and Value for its piloting was not been integrated and (UCoA) was approved by guidelines for its approved by the deviates from applicable the MoF on July 30, application are Government on international standards. 2018. approved. November 29, 2019. Date 31-Dec-2015 19-Jul-2019 31-Jan-2020 30-Jul-2021 Achieved. The approved UCoA informed the requirements for the public sector accounting IT solution that is expecte 2020 to pilot the UCoA in 2021 in several spending units. Comments: IN00811808 ►Modernization of business processes (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target The tender for consultancy expected to The new tender for the Future business support the development consultancy was re- processes to be Revised business Value of the business advertised in supported by FMIS are processes approved processes was September 2019 and not fully defined. unsuccessful, new tender is ongoing. needs to be organized. Date 31-Dec-2015 19-Jul-2019 31-Jan-2020 30-Jul-2021 On track to be achieved. The first tender for consultancy expected to support the development of the business proce The new tender was re-advertised in September 2019 and is ongoing. Comments: IN00811809 3/18/2020 Page 5 of 8 The World Bank Implementation Status & Results Report BELARUS PUBLIC FINANCIAL MANAGEMENT MODERNIZATION PROJECT (P146997) ►Reliability and fault tolerance of the ASFS (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target The ASFS at the republican level operates at two geographically distant sites. There is still no full-fledged backup system; and there is a A uniform distribution high probability of data of the load on the The ASFS at the loss in the event of an ASFS and efficient republican level operates Invitation for bids for accident. Domain and data processing and at two geographically the Active-active postal structures of the backup through distant sites. There is no hardware-software has ASFS are scattered. The, "Active-Active" full-fledged backup been published on and the IT infrastructure geographically system; there is a high December 15, 2019, at the Oblast level is distributed cluster. probability of data loss in and its procurement is outdated. Modern IT the event of an accident. expected to be It is not possible to infrastructure with Domain and postal completed in April deploy a fault-tolerant server virtualization structures of the ASFS 2020. On the other Value cluster (FTC) allowing for software and are scattered. The IT side, the procurement control of computing virtualization infrastructure at the of the virtualization resources using the new management centers Oblast level is outdated. software is expected to equipment. Since this is is established at the It is not possible to be launched in March a new indicator, the republican and oblast deploy a fault-tolerant 2020. The results will current status is identical levels (12 sites) cluster (FTC) allowing for only be seen after the to the baseline. However, including virtual control of computing new IT equipment is it should be noted that machines control resources using the new procured, installed and the development of center and capabilities equipment functional. bidding documents is to deploy a fault- ongoing, and the results tolerant cluster (FTC) will only be seen after the ICT will be procured, installed and operationalized. Date 27-May-2019 19-Jul-2019 31-Jan-2020 30-Jul-2021 On track to be achieved. Comments: IN00811810 ►ASFS centralized storage capacity (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value There is no centralized There is still no Bidding process for the Centralized storage of storage of the ASFS centralized storage of the portable data storage databases of MoF databases for planning ASFS databases for system is expected to territorial bodies and and execution of local planning and execution be launched in March local finance bodies at budgets. It is not possible of local budgets. It is not 2020. The results will MoF is ensured to operate the ASFS possible to operate the only be seen after the through high-speed segment in emergency ASFS segment in new IT equipment is and reliable data (abnormal) mode using emergency (abnormal) procured, installed and storage system. The the backup equipment mode using the backup functional. capability to operate equipment. Since this is the ASFS in a new indicator, the emergency (abnormal) current status is identical mode using the to the baseline. However, backup equipment is it should be noted that ensured the development of bidding documents is ongoing, and the results 3/18/2020 Page 6 of 8 The World Bank Implementation Status & Results Report BELARUS PUBLIC FINANCIAL MANAGEMENT MODERNIZATION PROJECT (P146997) will only be seen after the ICT will be procured, installed and operationalized. Date 27-May-2019 19-Jul-2019 31-Jan-2020 30-Jul-2021 On track to be achieved. Comments: Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P146997 IBRD-86060 Effective USD 10.00 10.00 0.00 4.02 5.98 40% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P146997 IBRD-86060 Effective 28-Mar-2016 01-Apr-2016 27-Jul-2016 30-Sep-2019 30-Jul-2021 Cumulative Disbursements 3/18/2020 Page 7 of 8 The World Bank Implementation Status & Results Report BELARUS PUBLIC FINANCIAL MANAGEMENT MODERNIZATION PROJECT (P146997) Restructuring History Level 2 Approved on 19-Jul-2019 Related Project(s) There are no related projects. 3/18/2020 Page 8 of 8