Public Disclosure Copy The World Bank Implementation Status & Results Report PFM-MDF FINANCED STRENGTHENING PUBLIC FINANCIAL MANAGEMENT PROJECT (P162196) PFM-MDF FINANCED STRENGTHENING PUBLIC FINANCIAL MANAGEMENT PROJECT (P162196) SOUTH ASIA | Bhutan | Governance Global Practice | Recipient Executed Activities | Investment Project Financing | FY 2018 | Seq No: 1 | ARCHIVED on 10-Nov-2018 | ISR34677 | Implementing Agencies: Ministry of Finance, Department of Public Accounts, KINGDOM OF BHUTAN Key Dates Key Project Dates Bank Approval Date:20-Sep-2017 Effectiveness Date:21-Sep-2017 Original Closing Date:31-Jan-2021 Revised Closing Date:31-Jan-2021 Project Development Objectives Project Development Objective (from Project Appraisal Document) The overall development objective of the project is to contribute to the improvement of the efficiency, accountability and transparency of PFM systems in Bhutan. Has the Project Development Objective been changed since Board Approval of the Project Objective? No PHRPDODEL Components Name Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO  --  Satisfactory Overall Implementation Progress (IP)  --  Moderately Satisfactory Implementation Status and Key Decisions The mission met with officials of various implementing agencies and had discussions on the implementation status of the above Project. It was noted that there is a need for improving the progress in implementation of IFMIS, IPSAS and Internal Audit components and a revision is required in activities under GST component. The shortages of staff in Internal Audit and AASBB was also highlighted as an area of concern. 11/10/2018 Page 1 of 7 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report PFM-MDF FINANCED STRENGTHENING PUBLIC FINANCIAL MANAGEMENT PROJECT (P162196) Risks Overall Risk Rating Risk Category Rating at Approval Previous Rating Current Rating Overall  --  --  Moderate Results Project Development Objective Indicators PHINDPDOTBL Enhanced controls in budget execution and disclosure of key fiscal information (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Annual Performance Agreements have been Enhanced published at least controls in annually budget 2016 PEFA Assessment execution and (refer Annex 4 on Budget Situation disclosure of Value -- Summary of PEFA Report Reports have been key fiscal 2016) prepared within 4 weeks information as from the quarter end evidenced by improvement in PEFA scores Date 01-Sep-2017 -- 30-Jun-2018 31-Jan-2021 PHINDPDOTBL Reduced procurement cycle time through increase in percentage of contracts/bids invited through e-GP using national competitive bidding (NCB) , in selected MoE, MoF and MoWHS (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target 75% of bids invited through 0% of bids invited through e-GP using 69% of bids invited e-GP using NCB NCB and Value -- through e-GP using Procurement cycle time: Procurement NCB 60 days cycle time reduced by at least 5 days Date 01-Sep-2017 -- 30-Jun-2018 31-Jan-2021 Overall Comments 11/10/2018 Page 2 of 7 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report PFM-MDF FINANCED STRENGTHENING PUBLIC FINANCIAL MANAGEMENT PROJECT (P162196) Intermediate Results Indicators PHINDIRITBL Enhanced contents in Budget Report consistent with international good practices including gender and climate change aspects (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Budget Report, consistent with Revised Budget Report revised Value N/A -- template drafted. template published on MoF website Date 01-Sep-2017 -- 30-Jun-2018 31-Jan-2021 PHINDIRITBL Increased number of companies in compliance with BAS Phase I and II (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 49.00 Date 01-Sep-2017 -- 31-Jul-2018 31-Jan-2021 PHINDIRITBL Setting the legal and operational environment for GST implementation (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target To be Cabinet approves the determined by concept note December Value No GST legislation -- (framework) on GST 2017, in introduction`. Target discussion with Met. RGoB Date 01-Sep-2017 -- 17-Aug-2017 31-Jan-2021 11/10/2018 Page 3 of 7 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report PFM-MDF FINANCED STRENGTHENING PUBLIC FINANCIAL MANAGEMENT PROJECT (P162196) PHINDIRITBL Improvement in quality assurance process within internal audit function based on methodology of the IIA (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Self-Assessment based on IIA guidelines not completed. Repeat self- MoU executed with peer assessment Baseline to be established Value -- country - delayed. indicates in year 1 Discussions are improvement underway with the IA over baseline agency in Indonesia (Achievable) Date 01-Sep-2017 -- 30-Jun-2018 31-Jan-2021 PHINDIRITBL Increased number of systems/thematic (performance or value for money) audits undertaken by Internal Audit - number of audits undertaken annually (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Adoption of guidelines on systems/thematic audits.(Delayed) Value 1.00 -- Engagement of 5.00 consultant to prepare guidelines is in progress. Date 01-Sep-2017 -- 30-Jun-2018 31-Jan-2021 PHINDIRITBL Improved efficiency of internal audit function - number of internal audit engagements (auditable units) annually (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 109.00 -- 140 (Target achieved) 200.00 Date 01-Sep-2017 -- 30-Jun-2018 31-Jan-2021 11/10/2018 Page 4 of 7 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report PFM-MDF FINANCED STRENGTHENING PUBLIC FINANCIAL MANAGEMENT PROJECT (P162196) PHINDIRITBL Improved presentation of National annual financial statements consistent with international standards (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Completion of Diagnostic Report National annual including IPSAS gap financial analysis with Roadmap National annual financial statements delayed statements presented not presented as Value -- in accordance with per Cash- - Core team formed international standards IPSAS based - Shortlisting completed Bhutan - RFP to be issued standards Date 01-Sep-2017 -- 31-Jul-2018 31-Jan-2021 PHINDIRITBL Public Procurement Bill approved by the Cabinet (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Public Procurement Value No Bill -- Not due Bill approved by the Cabinet Date 01-Sep-2017 -- -- 30-Jan-2021 PHINDIRITBL Strengthening of PEMS (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target PEMS strengthened Gaps in Payroll and bank Initiation of e-Payment with Payroll reconciliation project covering PEMS control, bank Value functionalities. -- EFT interface and reconciliation Commitment control not automated bank and present. reconciliations.done commitment control functionalities. Date 01-Sep-2017 -- 30-Jun-2018 31-Jan-2021 11/10/2018 Page 5 of 7 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report PFM-MDF FINANCED STRENGTHENING PUBLIC FINANCIAL MANAGEMENT PROJECT (P162196) PHINDIRITBL PFM information systems integrated (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Integration of Work initiated on PFM PFM information systems PFM Value -- systems integration with with minimum integration information development of APIs systems Date 01-Sep-2017 -- 01-Jul-2018 30-Jan-2021 Overall Comments Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P162196 TF-A5549 Effective USD 4.00 4.00 0.00 1.15 2.85 29% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P162196 TF-A5549 Effective 20-Sep-2017 21-Sep-2017 21-Sep-2017 31-Jan-2021 31-Jan-2021 Cumulative Disbursements 11/10/2018 Page 6 of 7 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report PFM-MDF FINANCED STRENGTHENING PUBLIC FINANCIAL MANAGEMENT PROJECT (P162196) Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 11/10/2018 Page 7 of 7 Public Disclosure Copy