Public Disclosure Copy The World Bank Implementation Status & Results Report Public Financial Management Strengthening Technical Assistance Project (P122476) Public Financial Management Strengthening Technical Assistance Project (P122476) AFRICA | Senegal | Governance Global Practice | IBRD/IDA | Technical Assistance Loan | FY 2011 | Seq No: 7 | ARCHIVED on 29-Jul-2015 | ISR20324 | Implementing Agencies: Key Dates Key Project Dates Board Approval date:26-Apr-2011 Effectiveness Date:22-Sep-2011 Planned Mid Term Review Date:30-Jun-2015 Actual Mid-Term Review Date:30-Jun-2015 Original Closing Date:30-Jun-2015 Revised Closing Date:30-Jun-2019 Project Development Objectives Project Development Objective (from Project Appraisal Document) The PDO is to enhance the credibility, transparency, and accountability in the management and use of central government finances.The project aims to support the modernization of the Public Financial Management system in Senegal. It includes four components:(1) Strengthening Fiscal Policies and Planning; (2) Improving Budget Execution Processes; (3) Strengthening the capacity ofexternal audit and legislative oversight; and (4) Project Management. Has the Project Development Objective been changed since Board Approval of the Project Objective? Yes Board Approved Revised Project Development Objective (If project is formally restructured)PHRPDODEL The PDO is to enhance budget credibility, transparency and accountability mechanisms in the use and management of central Government financial resources. The project aims to support the modernization of the Public Financial Management system and the implementation of a Public Sector performance based system in Senegal. It includes five components: (1) Strengthening Fiscal Policies and Planning; (2) Improving Budget Execution and Reporting Processes; (3) Strengthening the Capacity of External Audit and Legislative Oversight; (4) Project Management; and (5) Supporting the Implementation of a Public Sector Performance-Based Management and Results Monitoring System. Components Name Component 1: Strengthening Fiscal Policies and Planning:(Cost $3.50 M) Component 2: Improving Budget Execution and Reporting Processes:(Cost $8.00 M) Component 3: Strengthening the Capacity of External Audit and Legislative Oversight:(Cost $2.50 M) Component 4: Project Management:(Cost $1.00 M) Overall Ratings 7/29/2015 Page 1 of 11 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Public Financial Management Strengthening Technical Assistance Project (P122476) Name Previous Rating Current Rating Progress towards achievement of PDO  Satisfactory  Satisfactory Overall Implementation Progress (IP)  Satisfactory  Satisfactory Overall Risk Rating  Substantial  Moderate Implementation Status and Key Decisions Progress towards achievement of PDO, as well as the overall Implementation Progress (IP), has been regularly rated satisfactory. To date, the disbursement rate of the initial project stands at 60 percent and the initial advance of the additional financial which represents 4 percent of the credit has been disbursed. The disbursment ratio of the project stands 24.30 percent and is superior to the target of the Region. Under component 1, “Strengthening Fiscal Policies and Planning”, the project facilitated the preparation and validation of multi-year programming documents of 17 ministries and the dissemination of the framework methodology for the assessment of economic viability of public investment projects. In addiiton to the assessment of the costs and benefits of 9 major projects of the Invesment Plan 2015-2017 conducted last year, the project is being supported the Directorate of Planning to assess 10 more projects registered in the Plan Senegal Emergent and reinforce the planning capacities of the Ministry through the dissemination of this methodology. The national training plan on the new PFM Directives has been prepared and its implementation over a three-year period has been organized within the framework of the parternship between the project unit and the National School of Administration ENA. The MEF has also validated the organizational and functional diagnostic of the Ministry and reorganized the departments, set up a new directorate in charge of Economy and public policies and planning and reorganized the division of the Treasury's General Pay Office with the creation of an accounting agency for major projects of the Plan Senegal Emergent. Several options resulted from the diagnostic of the legal and institutional changes needed to implement successfully the new PFM directives, speciffically the transfer of commitment authority to line ministries, the reorganization of the Directorate of Budget and line ministries in line with the 130 programs proposed and the division of roles and responsibilities among budget managers. It is therefore important to make appropriate decisions in order to review the organization and speed up the implementation of reforms. The project facilitated the preparation and validation of the debt strategy. The SDMTelaborared for a four year period is updated in a yearly basis and published on the Treasury site and a quaterly statistical newsletter on public debt is edited and circulated. The debt management information system has been improved. A debt management strategy has been adopted and attached to the budget documents of the last two years. The Public Expenditures and Financial Accountability (PEFA) score for PI-3 (Debt Management Strategy) has improved from D+ (baseline) to A (actual 2015), which is the end target of the indicator. This has contributed to the PDO by establishing the base for strengthening fiscal policy management as well as improving fiscal operations reporting and budget credibility. The main achievements of component 2, “Improving Budget Execution and Reporting Processes”, are: (i) the completion of the bidding process for a turn-key implementation of the IFMIS modules and interfacing with revenue, payroll and pensions applications. The technical and financial evaluation of bids received has been completed and an award proposed. The negotiation and signature of this contract before end of September 2015 is critical to keep the implementation of the project on track.This also includes the elaboration and adoption of a change management strategy and its implementation through the execution of the communication and training plan is helping to alleviate uncertainties associated with structural changes. ; (ii) the upgrading of ASTER (the accounting software) and SIGFIP (the budget preparation and execution software) and their interfacing are being finalized to present programs budgets during the transition period while the IFMIS is being set up; (iii) the assessment of public agencies led to the adoption of a comprehensive restructuring plan for agencies and the elaboration and signature of performance contracts with six main agencies in 2014. The project is being supporting the Oversight Unit of Agencies and SOEs to elaborate and sign 10 more performance contracts with key agencies and public enterprises by the end of 2015. The implementation of an effective performance monitoring framework in key agencies, in particular those in charge of executing public investment projects is also being monitored; and (iii) the development of internal audit framework and strategy for internal audit institutions, the introduction of the risk based approach and risk mapping of key entities within the Ministry of Economy and Finances and some line ministries. The PEFA Indicator PI-21 (Effectiveness of Internal Audit) has improved from C to B (actual for 2015). The internal audit function is operational in 29 ministries out of 30. All internal control entities have manual of procedures in line with professional standards. Implementation of the component has contributed to establishing the enabling environment for a strengthened internal management for key departments of MEF and line ministries, as well as developing the technical and functional requirements and specifications to begin the process of improving budget execution, reporting and control consistent with the WAEMU Directives. The modernization and capacity building of the Supreme Audit Institution (SAI) is the main objective of the component 3, “Strengthening the Capacity of External Audit and Legislative Oversight”. The SAI is completing the auditing and certification of the backlog of audits and developing auditor capacity in conducting performance and special audits. The PEFA indicator PI-26 (Scope, Nature and Follow up of External Audit) has improved from D+ (baseline) to B (actual 2015). The timeline for the completion of the annual external audits of Government Budget Review Act after Fiscal Year end has been improved. The accumulated arrearswere reduced from 36 months to 12 months. The SAI has cleared the backlog of audit reports and realized three performance audits of health programs. The implementation of the new component 5 - Supporting the implementation of a Public Sector Performance-Based Management and Results Moniting System is in early stages. The work program and annual budget have been reviewed and adopted by the steering committee. Activities executed 7/29/2015 Page 2 of 11 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Public Financial Management Strengthening Technical Assistance Project (P122476) in 2015 support the elaboration and adoption of performance contracts of 10 main agencies and SOEs. The coordinator of the Service Delivery Unit housed in the Office of Organization and Methods has been appointed and the operational capacity of the unit is being built with the recruitment of key experts and the set up of monitoring and evaluation units in the key sectors. The ratings and sub-ratings for the past three Implementation and Status Reports (ISRs) for the project have been consistently reported as satisfactory. The last implementation support mission conducted in July 2015 recommends that the government pursue its efforts to implement project activities and adopt the key actions described below: 1. Monitoring the implementation of activities. significant progress has been noticed in the monitoring of activities that speed up the implementation of the work program but some key decisions related to the modalities of tranferring the commitment of authority to line ministries, the division of roles and responsabilities among managers of budgets and the political validation of programs should be made by the Authorities to avoid delaying the implementation of PFM reforms. The mission stressed the need to have within major directorates such as Directorate General of Finances staff exclusively dedicated to monitor the implementation of reforms. It was also agreed with the Project Coordinator that in addition to sensitizing the different structures, beneficiaries would henceforth be given a validation time limit, notably for the elaboration of terms of reference and validation of the Guidance Notes and final reports. 3. Finalizing ongoing actions: The PARFP should, undertake actions meant to (1) submit the evaluation reports and recommended award for the Turn- key implementation of IFMIS modules to the IDA review and take adequate measures to negotiate and sign this contract by the end of September 2015, ; (2) monitor closely the implementation of the work program, in consultation with the Directorate General of Finance (DGF) and the Directorate of Treasury and Public Accounting in order to improve the overall budget execution, and, (3) to implement key actions related to the preparation of the IFMIS implementation. Overall implementation progress of the project is satisfactory. The PFM Reform Secretariat is following up satisfactorily the implementation of the activities with the beneficiaries. The mission noted satisfactory progress in the achievement of the development objective, which consists in helping improve budget credibility, transparency and accountability mechanisms in the use and management of State resources. Actually, the debt management strategy was formulated and used for decision-making, and this helped improve the DPI-3 indicator grade to A which was the end target. The scope, nature and follow-up of the external audit also improved with the technical assistance provided by the project to complement the staffing of the Supreme Audit Institution. The report on the audit of the 2012 and 2013 budget review act was transmitted to the National Assembly before the end of December 2013 and 2014. The target of the PI-26 indicator concerning the scope, nature and follow-up of the external audit was achieved with grade B. The objectives of strengthening the capacities of actors involved in public finance management were also surpassed. The target for 2015 was 800 people trained, of whom 10 % are women. The result obtained is 1,783 people trained, of whom 20 % are women. Key recommendations include the need to continue to monitor the implementation of the activities in coordination with the beneficiaries, especially speeding up the procurement processes and following up closely the execution of signed contracts . 7/29/2015 Page 3 of 11 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Public Financial Management Strengthening Technical Assistance Project (P122476) 7/29/2015 Page 4 of 11 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Public Financial Management Strengthening Technical Assistance Project (P122476) Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance  --  Substantial  Substantial Macroeconomic  --  Substantial  Moderate Sector Strategies and Policies  --  Substantial  Moderate Technical Design of Project or Program  --  Moderate  Moderate Institutional Capacity for Implementation and Sustainability  --  Substantial  Moderate Fiduciary  --  Substantial  Moderate 7/29/2015 Page 5 of 11 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Public Financial Management Strengthening Technical Assistance Project (P122476) Environment and Social  --  Low  Low Stakeholders  --  Substantial  Moderate Other  --  Moderate  -- Overall  --  Substantial  Moderate Results Project Development Objective Indicators PHINDPDOTBL  PEFA Indicator PI-21 = Effectiveness of Internal Audit (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value C+ B B B+ Date 15-Nov-2007 31-Dec-2014 30-Jun-2015 30-Jun-2019 PHINDPDOTBL  PI-26 = Scope, Nature and Follow-up of External Audit (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value D+ B B B+ Date 15-Nov-2007 31-Dec-2014 30-Jun-2015 30-Jun-2019 PHINDPDOTBL  DPI-3: Debt Management Strategy (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value D+ A A A Date 26-Aug-2009 31-Dec-2014 30-Jun-2015 30-Jun-2019 PHINDPDOTBL  PI-4 Stock and Monitoring of Expenditure Payment Arrears (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value B B B A 7/29/2015 Page 6 of 11 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Public Financial Management Strengthening Technical Assistance Project (P122476) Date 01-Sep-2014 31-Dec-2014 31-Dec-2014 30-Jun-2019 PHINDPDOTBL  Production of monitoring indicator reports on key PSE priority results of Energy, Agriculture, Infrastructures, Basic Education and Health on a bi-yearly basis (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 4.00 10.00 Date 01-Sep-2014 31-Dec-2014 30-Jun-2015 30-Jun-2019 PHINDPDOTBL  Persons trained in PFM accross Ministries and Departments (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1640.00 1783.00 2000.00 Date 01-Sep-2011 31-Dec-2014 30-Jun-2015 31-Dec-2017 Overall Comments Intermediate Results Indicators PHINDIRITBL  Number of Ministries with fully costed sectoral strategies (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 21.00 21.00 21.00 Date 25-Apr-2011 30-Jun-2014 30-Jun-2014 31-Dec-2014 7/29/2015 Page 7 of 11 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Public Financial Management Strengthening Technical Assistance Project (P122476) PHINDIRITBL  Total public debt (CFA francs) in Single Unified Debt database (disaggregated domestic and external) (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 100.00 100.00 100.00 PHINDIRITBL  Analytical work and other economic studies carried out in support of fiscal policies and management. Cost economic analysis of major investment programs are conducted (=> XOF 10 billion) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 2.00 2.00 5.00 Date 25-Apr-2011 31-Dec-2014 30-Jun-2015 30-Jun-2019 PHINDIRITBL  Cost economic analysis of major investment programs (Costs greater than or equal to XOF 10 billion) are conducted (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 10.00 10.00 50.00 Date -- 31-Dec-2014 30-Jun-2015 30-Jun-2019 PHINDIRITBL  Legal framework for public financial management revised to reflect WAEMU Directives (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N Y Y Y Date 25-Apr-2011 30-Jun-2014 30-Jun-2014 30-Jun-2019 7/29/2015 Page 8 of 11 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Public Financial Management Strengthening Technical Assistance Project (P122476) PHINDIRITBL  A fully integrated budget and treasury management information system that interfaces with the other core systems, GAINDE, SIGTAS, DAIDA, Payroll/Pensions, NINEA, and Banks (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N N N Y Date 25-Apr-2011 31-Dec-2014 31-Dec-2014 30-Jun-2019 PHINDIRITBL  Internal audit reports presented to and followed-up by Internal Audit Committees at MEF and line ministries. (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 68.00 64.00 75.00 Date 25-Apr-2011 31-Dec-2014 30-Jun-2015 30-Jun-2019 PHINDIRITBL  Timeline for the completion of the Annual external audits of Government Budget Review Act after Fiscal Year end (Months, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 36.00 12.00 12.00 10.00 Date 25-Apr-2011 31-Dec-2014 31-Dec-2014 30-Jun-2019 PHINDIRITBL  Performance contracts signed for the main agencies and SOEs (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 5.00 7.00 7.00 25.00 Date 30-Sep-2014 31-Dec-2014 30-Jun-2015 30-Jun-2019 7/29/2015 Page 9 of 11 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Public Financial Management Strengthening Technical Assistance Project (P122476) PHINDIRITBL  Production of annual performance reports for key line ministries (Energy, Agriculture, Infrastructure, Basic Education, and Health) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 2.00 5.00 Date 01-Sep-2014 31-Dec-2014 30-Jun-2015 30-Jun-2019 PHINDIRITBL  Average processing time for pensions and superannuation payments (Months, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 6.00 -- -- 2.00 Date 01-Sep-2014 -- -- 30-Jun-2019 PHINDIRITBL  Production and adoption of multi-year programming documents of key sectors (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 6.00 6.00 17.00 31.00 Date 31-Dec-2014 22-Jan-2015 30-Jun-2015 31-Jan-2017 Overall Comments Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P122476 IDA-49150 Effective XDR 9.60 9.60 0.00 5.74 3.86 60% P122476 IDA-55280 Effective XDR 19.50 19.50 0.00 0.87 18.63 4% Key Dates (by loan) 7/29/2015 Page 10 of 11 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Public Financial Management Strengthening Technical Assistance Project (P122476) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P122476 IDA-49150 Effective 26-Apr-2011 28-Jun-2011 22-Sep-2011 30-Jun-2015 30-Jun-2019 P122476 IDA-55280 Effective 31-Jul-2014 23-Sep-2014 10-Nov-2014 30-Jun-2019 30-Jun-2019 Cumulative Disbursements Restructuring History There has been no restructuring to date. Related Project(s) P146859-Public Financial Management Strengthening Technical Assistance Project 7/29/2015 Page 11 of 11 Public Disclosure Copy