The World Bank Implementation Status & Results Report PforR on Modernization and Optimization of Public Administration (P155172) PforR on Modernization and Optimization of Public Administration (P155172) EUROPE AND CENTRAL ASIA | Serbia | Governance Global Practice | Requesting Unit: ECCWB | Responsible Unit: GGOEW IBRD/IDA | Program-for-Results Financing | FY 2016 | Team Leader(s): Verena Maria Fritz, Srdjan Svircev Seq No: 5 | ARCHIVED on 28-Jun-2019 | ISR37141 | Created by: Verena Maria Fritz on 15-May-2019 | Modified by: Verena Maria Fritz on 27-Jun-2019 Program Development Objectives Program Development Objective (from Program Appraisal Document) The Program Development Objective is to improve efficiency in public sector employment and finances. In this context, efficiency is the reduction in the cost of doing government business. This will be achieved by addressing systemic weaknesses in the allocation of employees and their remuneration, streamlining and rationalizing public procurement and strengthening controls over public expenditure. Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Moderately Unsatisfactory Moderately Unsatisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Implementation Status and Key Decisions The Government remains overall committed to the reforms supported by the program. The Government has made progress in the implementation of Program activities. Five out of six Program Development Objective (PDO) indicators which are also Disbursement Linked Indicators (DLIs), are on track. However, progress on PDO Indicator 1/DLI 2 - Share of public administration employees assigned to new pay grades as per the Law on Public Sector Employees Salary System, remains off track and at risk of not being achieved during the life of the program, as the GoS decided to postpone implementation of the Law on Public Sector Employees Salary System to January 1, 2020, and then further to mid-2020. However, key implementation steps are expected to be taken by the end of 2019, including a reflection of the transition in the budget for 2020, and the adoption of relevant laws and decrees to set the stage for implementation. The Ministry of Public Administration and Local Self Government (MPALSG) notified the Bank of the achievement of Disbursement Linked Results (DLRs) 3.2, 5.2, and 4.1, and provided supporting evidence and additional clarifications. The achievement of those DLRs was verified by the Public Policy Secretariat (PPS) and the Bank. The other remaining DLRs (3.3, 4.2, 5.3, 7.2 and 8.2) are expected to be met and verified during CY2019, except for DLI 2, as discussed above. Program implementation relies on strong coordination of different Government departments and entities. The Government has formed a Program coordination team both within the MPALSG for internal coordination and across the Government to facilitate coordination of Program implementation. Coordination has been broadly effective. Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed 6/28/2019 Page 1 of 12 The World Bank Implementation Status & Results Report PforR on Modernization and Optimization of Public Administration (P155172) P155172 IBRD-86080 Effective USD 75.00 75.00 0.00 37.94 37.55 50% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P155172 IBRD-86080 Effective 20-Apr-2016 16-May-2016 01-Dec-2016 29-Feb-2020 29-Feb-2020 Program Action Plan Increased involvement of the budget beneficiaries establishing its budgetary allocations and multi-year budget Action Description requirements. Source DLI# Responsibility Timing Timing Value Status Fiduciary Systems Client Due Date 31-Dec-2017 Completed Completion Adherence to budget calendar and evidence of effective two-way process in budget preparation. Measurement Budget calendar for 2018 budget has been followed. The Ministry of Finance analyzed the financial plans of relevant Comments budget users, provided feedback and initiated two way communication in coming to the final budget appropriations. Action Description Regular periodic reporting on comprehensive data on arrears. Source DLI# Responsibility Timing Timing Value Status Fiduciary Systems Client Due Date 31-Dec-2016 Completed Completion Evidence of regular reports on arears Measurement Comments The data on outstanding payments and arrears has been reported on and available. Improved medium-term planning and consideration of medium-term targets in preparation of respective annual Action Description budgets. Source DLI# Responsibility Timing Timing Value Status Fiduciary Systems Client Due Date 31-Dec-2016 In Progress Completion Assessment of annual budgets and medium-term plans Measurement Consideration of medium-term ceilings still needs to be considered to larger extent during the preparation of annual Comments budgets and deviations explained. Improvement is expected during the preparation of 2020 budget. Action Description Instituting ex-ante controls for contractual commitments 6/28/2019 Page 2 of 12 The World Bank Implementation Status & Results Report PforR on Modernization and Optimization of Public Administration (P155172) Source DLI# Responsibility Timing Timing Value Status Fiduciary Systems Client Due Date 31-Dec-2016 In Progress Completion Instituted mechanism of controls over contractual commitments prior to assuming them Measurement Ex-ante system of commitments has not been introduced, but this risk is mitigated with the introduction of the Central Comments register of invoices (established in March 2018) which provides timely and reliable data on commitments. Action Description Improved control over multi-annual contractual commitments Source DLI# Responsibility Timing Timing Value Status Fiduciary Systems Client Due Date 31-Dec-2016 In Progress Completion Implementing a systematic approach to approve, record and monitor multi-annual contractual commitments Measurement The legal framework for controlling multi-annual contractual commitments exist, setting a 3 year limit and Comments government approval of multi-year contracts, but this have not been fully implemented and enforced in practice. The Government to strengthen the complaint handling mechanism to improve its effectiveness and efficiency in Action Description handling complaints. Source DLI# Responsibility Timing Timing Value Status Fiduciary Systems Client Due Date 31-Dec-2016 In Progress Completion Reports of activities in the first six months of Program effectiveness Measurement Comments Action Description MPALSG has staff assigned to coordinate, monitor and report on the rightsizing process and its effects. Source DLI# Responsibility Timing Timing Value Status Environmental and Social Client Due Date 01-Jul-2016 Completed Systems Completion Two staff assigned with relevant competences and experience (knowledge of human resources and labor relations Measurement procedures) Comments MPALSG has assigned staff to monitor and report on the rightsizing process and its effects Action Description Improve consultations with workers and unions. 6/28/2019 Page 3 of 12 The World Bank Implementation Status & Results Report PforR on Modernization and Optimization of Public Administration (P155172) Source DLI# Responsibility Timing Timing Value Status Environmental and Social Client Recurrent Continuous In Progress Systems Completion Each public entity submitting redundancy payment request to the MPALSG to attach consultation minutes or written Measurement opinions by the unions (workers’ representatives) on the retrenchment plan. Organizations rightsized in 2018 did not prepare plans as the reductions did not meet the threshold of (10%) as per the Labor law. 11 health organizations and 28 municipalities who carried out rationalizations conducted consultations Comments with unions. Action Description Prepare the criteria for selection of employees who will be made redundant. Source DLI# Responsibility Timing Timing Value Status Environmental and Social Client Recurrent Continuous In Progress Systems Every employer who will reduce its workforce will make the criteria for retrenchment publicly available. The Completion retrenchment criteria and the rationale will be included in the retrenchment plans and acts on termination of Measurement employment. According to data collected under the MPALSG (2017 SSA report), for employees who received severance pay in the Comments process of rationalization, organizational units applied the redundancy selection criteria in line with the relevant laws and regulations. Action Description Retrenchment plans prepared (in cases prescribed by the law). Source DLI# Responsibility Timing Timing Value Status Environmental and Social Client Recurrent Continuous In Progress Systems Completion Elements of retrenchment plans defined in PAD Measurement In 2017 and 2018 no public entity that submitted redundancy payment request was obliged to prepare the Comments retrenchment plan, because the number of redundant employees was below 10% as prescribed by the Labor law. Action Description Transition assistance to retrenched employees. Source DLI# Responsibility Timing Timing Value Status Environmental and Social Client Recurrent Continuous In Progress Systems Completion The Ministry of Labor, Employment, Veterans and Social Affairs to include in the 2016, 2017, 2018 performance Measurement agreement with the NES a requirement for NES to provide specific transition assistance. 6/28/2019 Page 4 of 12 The World Bank Implementation Status & Results Report PforR on Modernization and Optimization of Public Administration (P155172) Comments The relevant agreement was concluded for 2018. Action Description Gender and social inclusion. Source DLI# Responsibility Timing Timing Value Status Environmental and Social Client Recurrent Continuous In Progress Systems Retrenchment plans & redundancy pay requests include info on gender, age, education, persons with disabilities and Completion ethnic minority. Ministry of Labor and NES will prepare special active employment measures for women (especially Measurement above age 50). SSA report for 2017 contained all required information except on ethnic minorities due to personal data protection Comments issues. Persons affected by retrenchment and above the age of 50 are identified as less employable and are prioritized in NES programs. Action Description Monitor severance payment disbursement and status of retrenched workers. Source DLI# Responsibility Timing Timing Value Status Environmental and Social Client Recurrent Continuous In Progress Systems The MPALSG and Ministry of Health will monitor and report annually on the number of workers who received the Completion severance payment, in line with the Law. Ministry of Labor & NES will report annually on the status of retrenched Measurement workers. The SSA report for 2017 contained all required information both in terms of the number of workers who received Comments severance payment and the status of retrenched workers and transition support they received. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance High Substantial High Macroeconomic High Moderate Moderate Sector Strategies and Policies Moderate Moderate Moderate Technical Design of Project or Program Moderate Moderate Substantial Institutional Capacity for Implementation and Sustainability Moderate Moderate Moderate Fiduciary Substantial Moderate Moderate Environment and Social Substantial Substantial Substantial Stakeholders Substantial Substantial Substantial 6/28/2019 Page 5 of 12 The World Bank Implementation Status & Results Report PforR on Modernization and Optimization of Public Administration (P155172) Other -- -- -- Overall High Substantial Substantial RiskComments Comments Political risk remains 'high' due to continuous tensions at the political level (opposition protests), and in the light of the upcoming regular parliamentary elections due in first half of 2020. Key political issues such as the status of Kosovo remain unresolved, adding to potential political risk and absorbing continuous policy attention. The risk 'Technical Design of Program' is upgraded to 'substantial' since it is becoming increasingly evident that the design of DLI 2 involved a substantial risk given the political, technical and fiscal sensitivity of transitioning to a more unified system of public sector wages. Results PDO Indicators by Objectives / Outcomes To improve efficiency in public sector employment and finances IN00704242 ►Total number of employees at or under annual ceiling prescribed by the Law on Ceilings on the Number of Employees (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Yes Yes Yes Date 28-Mar-2016 16-Nov-2018 14-Jun-2019 31-Dec-2018 The verification of the target for calendar year 2017 was completed by the verification agent and confirmed by GoS, and authorization for withdrawal of the associated amount for DLR 3.2 was confirmed by the WB Comments on May 7th, 2019. IN00704243 ►Share of redundant public administration employees receiving redundancy payments pursuant to provisi (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 100.00 100.00 100.00 Date 28-Mar-2016 16-Nov-2018 14-Jun-2019 31-Dec-2018 100% achieved for 2017, and disbursement against achieved DLR 4.1 for 2017 was completed in February 2019. Verification for 2018 under preparation and is expected in the second half of 2019. Comments IN00704244 ►Share of public procurement contracts within the category of public authorities over 5,000,000 RSD in value, signed in a Fiscal Year of the Borrower, in 90 days or less between the date of Issuance o (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 62.00 89.00 89.00 71.00 Date 28-Mar-2016 16-Nov-2018 14-Jun-2019 31-Dec-2018 Target for 2016 has been achieved and verified by the PPS. Target for 2017 was 68% and the PPS confirmed that the target was achieved and exceeded (89% versus a Comments target of 71% for 2018). Authorization for withdrawal of the predicted amount was sent by the WB on May 7, 2019. 6/28/2019 Page 6 of 12 The World Bank Implementation Status & Results Report PforR on Modernization and Optimization of Public Administration (P155172) Collection of data necessary for fulfillment of DLI 5 (DLR 5.3) for 2018 and subsequent verification is currently in progress; and confirmation to the WB is expected by August 19, 2019. IN00704245 ►Value of Public Procurement Contracts awarded through Framework Agreements (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value RSD 26.6 bn RSD 63.2 bn RSD 96.9 RSD 96.9 bn Date 28-Mar-2016 16-Nov-2018 14-Jun-2019 31-Dec-2018 The value for 2017 is 63.2 billion RSD and the target value has been met. For 2018, PPS confirmed that all data are correct and, therefore, the target of was achieved. Authorization for withdrawal of the predicted Comments amount was sent by the WB on May 7, 2019. The DLI is fully achieved. IN00704246 ►Percentage of commitments in budget execution system entered within the required deadline per the Law on Deadline for Payments in Commercial Transactions (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 60.00 90.00 82.30 90.00 Date 28-Mar-2016 05-Nov-2018 14-Jun-2019 31-Dec-2018 For 2017, a verified level of 82.3% was achieved. This has been verified and the authorization for withdrawal approved in February 2019. For 2018, based on information provided by the MoF and MPALSG, over 90% of commitments , have been executed in line with the Law on Deadline for Payments in Comments Commercial Transactions. WB review and authorization of further withdrawal against the 2018 target will be completed in early FY20. IN00704247 ►Share of public administration employees assigned to new pay grades as per the Law on Public Sector Employees Salary System (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 70.00 Date 28-Mar-2016 16-Nov-2018 14-Jun-2019 31-Dec-2018 Achievement of this result is associated with the full implementation of the new wage system outlined in the Law on Public Sector Employees Salary System. Given that GoS decided to postpone implementation of Comments this law to mid-2020, achievement of this result, and of the DLI, remain uncertain. Intermediate Results Indicators by Results Areas Improved Human Resource Management IN00704248 ►At least 70% of public administration employee positions assigned to new pay grades according to the Law on Public Sector Employees Salary System (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Yes Yes Yes Date 28-Mar-2016 16-Nov-2018 14-Jun-2019 29-Sep-2017 WBG notified about fulfillment and verification on August 28, 2018. Comments IN00704251 6/28/2019 Page 7 of 12 The World Bank Implementation Status & Results Report PforR on Modernization and Optimization of Public Administration (P155172) ►Share of public administration employees assigned to new pay grades as per the law on Public Sector Employees Salary System (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 70.00 Date 28-Mar-2016 16-Nov-2018 14-Jun-2019 31-Dec-2018 Government decided to postpone implementation of the Law on Public Sector Employees Salary System to Comments mid- 2020 which may result in not meeting agreed target prior to the project closure. IN00704254 ►Employee Registry functioning according to defined criteria in the Law on Registry of all Employees, Elected, Nominated, Appointed, and Engaged Persons within Public Funds Beneficiaries (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 28-Mar-2016 16-Nov-2018 14-Jun-2019 31-Dec-2018 This result indicator is partly achieved. The current main Registry in the Treasury Administration is operational, however there is no full compliance with sending regular updates to this registry by public sector entities. A new Law on the Central Registry of Mandatory Social Insurance (CROSO) was adopted in December 2018, and in line with the Law, CROSO is preparing the establishment of the registry under its Comments auspices by early 2020. Actual achievement of a comprehensive and continuously up to date registry is likely from early 2020, with additional/complementary systems to be introduced later in MOF and Human Resource Services (HR Service for Civil Servants). IN00704255 ►Share of public administration employees paid according to new pay grades as per the Law on Public Sector Employees Salary System (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 60.00 Date 28-Mar-2016 16-Nov-2018 14-Jun-2019 31-Dec-2018 Government decided to postpone implementation of the Law on Public Sector Employees Salary System to Comments mid-2020 which may result in not meeting agreed target prior to the project closure. IN00704256 ►Ministries with retrenchment plans, identifying redundant positions (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 17.00 17.00 17.00 Date 28-Mar-2016 16-Nov-2018 14-Jun-2019 31-Dec-2018 Based on the information provided by the MPALSG, no new retrenchment plans were required or adopted in Comments 2018. All required retrenchment plans were adopted in the previous year. Improved Financial Management IN00704249 ►Indirect Budget Beneficiaries included in the FMIS (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 318.00 529.00 526.00 6/28/2019 Page 8 of 12 The World Bank Implementation Status & Results Report PforR on Modernization and Optimization of Public Administration (P155172) Date 28-Mar-2016 29-Dec-2017 14-Jun-2019 31-Dec-2018 MoF communicated that by December 31, 2018 an additional group of indirect budget beneficiaries (IBBs) comprising social institutions, were included in the budget execution system, increasing the number from Comments 318 to 529, achieving the program target of 526 IBBs fully. The final WB check of the verification by the PPS will be completed in early FY20. IN00704252 ►Budget inspections conducted (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 25.00 25.00 15.00 50.00 Date 28-Mar-2016 29-Dec-2017 14-Jun-2019 31-Dec-2018 The Budget Inspection unit has undergone restructuring, upgrading, and strengthening. The number of inspections completed in 2018 was 15. In December 2018, the budget inspectorate was elevated from a unit within a sector to a separate sector, and the number of employees was increased to 19. It is expected that Comments the strengthened capacity and status will lead to a re-increase in the number of completed inspections in 2019. Improved Procurement Management IN00704250 ►Public procurement contracts awarded through framework agreements for all contracting authorities (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 3,300.00 4,254.00 35,862.00 4,400.00 Date 28-Mar-2016 16-Nov-2018 14-Jun-2019 31-Dec-2018 In 2018, 35,862 individual contracts signed, as part of 2530 Framework Agreements. Comments IN00704253 ►Public Procurement Officers Certified (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 1,810.00 6,175.00 4,236.00 2,400.00 Date 28-Mar-2016 16-Nov-2018 14-Jun-2019 31-Dec-2018 2016: 3,288 certified 2017: 3,762 certified Comments 2018: 4,236 certified in total Disbursement Linked Indicators DLI_IND_TABLE ►DLI 1 Percentage of Public Administration Employee Positions assigned to pay grades as per the Law on Public Sector Employees Salary System. (Outcome, 11,040,000.00, 100%) Baseline Actual (Previous) Actual (Current) Year 3= 2018 Value 0.00 83.72 83.72 -- 6/28/2019 Page 9 of 12 The World Bank Implementation Status & Results Report PforR on Modernization and Optimization of Public Administration (P155172) Date 28-Mar-2016 28-Aug-2018 28-Aug-2018 -- In December 2017, MPALSG sent a letter to the Bank informing of the achievement of DLI 1, following the passage of amendments to the Law on Public Sector Employees Salary System and the Law on Employees in Public Services on 14 December, 2017. The letter is complemented by a note clarifying that the passed laws provide the basis for the assigning of job positions in the public sector to the matrix of pay coefficients Comments contained in the Law on Public Sector Employees Salary System. The result has been verified by the PPS and Bank has been informed on the achievement of this DLI in a letter from MPALSG on August 28, 2018. The amount for this indicator of 11.040.000,00 EUR was withdrawn on 15th of February 2019. ►DLI 2 Percentage of Public Administration Employees assigned to pay grades as per the Law on Public Sector Employees Salary System. (Outcome, 11,040,000.00, 0%) Baseline Actual (Previous) Actual (Current) Year 3= 2018 Value 0.00 0.00 0.00 90.00 Date 28-Mar-2016 16-Nov-2018 14-Jun-2019 -- Achievement of this result, and DLI, is associated with full implementation of the Law on Public Sector Employees Salary System. The GoS decided to postpone full implementation of this law to mid-2020 which Comments means that this might not be achieved during the current project. ►DLI 3 Total number of Public Administration Employees at or under annual ceiling prescribed by the Law on Ceilings on the Number of Employees (Outcome, 5,520,000.00, 33%) Baseline Actual (Previous) Actual (Current) Year 3= 2018 Value No 100.00 100.00 Yes Date 28-Mar-2016 15-Nov-2018 14-Jun-2019 -- On December 29, 2017, PPS submitted to MPALSG a report on the verification of the fulfillment of DLR 3.1. The data and calculations related to the rationalization of the number of employees in the public sector for 2016 were verified, it was established that the data were accurate and that the indicator was achieved. The documentation of the achievement of DLR 3.2, for 2017, was verified by the PPS on January, 23rd 2019 Comments and authorization for withdrawal of the predicted amount was sent by the WB on May 7th, 2019. Actual withdrawal is expected by January 2020, based on communication from the Public Debt Administration (via MPALSG). ►DLI 4 Percentage of Redundant Public Administration Employees receiving Redundancy Payments pursuant to provisions of Law on Ceilings on the Number of Employees, Civil Servants Law, and Labor Law (Outcome, 13,627,500.00, 50%) Baseline Actual (Previous) Actual (Current) Year 3= 2018 Value 0.00 100.00 100.00 100.00 Date 28-Mar-2016 16-Nov-2018 14-Jun-2019 -- Achievement of indicator for 2017 was confirmed through the PPS verification report submitted on 18th of October 2018, and after authorization of the WB, the amount was withdrawn on 15th of February 2019. Comments Confirmation of fulfillment for 2018 is expected by August 19, 2019. 6/28/2019 Page 10 of 12 The World Bank Implementation Status & Results Report PforR on Modernization and Optimization of Public Administration (P155172) ►DLI 5 Percentage of Public Procurement Contracts within the category of public authorities over 5,000,000 RSD in value, signed in a Fiscal Year of the Borrower, in 90 days or less between the date of Issuan (Outcome, 5,520,000.00, 33%) Baseline Actual (Previous) Actual (Current) Year 3= 2018 Value 62.00 89.33 89.00 71.00 Date 28-Mar-2016 16-Nov-2018 14-Jun-2019 -- For this DLI, the level achieved at the end of 2017 (89 per cent) already exceeds the target for 2018 (71 per cent). The 2018 average duration of procurement processes is 65 days, and 33 days for small procurements, well below the threshold of 90 days. Disbursements for 2016 were authorized on April 11, 2018 and for 2017 in May 2019, with EUR1,840,000 Comments authorized for each DLR (5.1 and 5.2). The amount for DLR 5.2 is expected to be withdrawn by January 2020, based on communication from the Public Debt Administration (via MPALSG). Collection and verification of data regarding the fulfillment of DLI 5 for 2018 is currently in progress. It is expected that the 2018 results achievement will be verified by August 19, 2019. ►DLI 6 Value of Public Procurement Contracts awarded through Framework Agreements (in RSD) (Outcome, 5,520,000.00, 22%) Baseline Actual (Previous) Actual (Current) Year 3= 2018 RSD 103.2 bn Value RSD 26.6 bn RSD 63.2 bn RSD 96.9 bn (cumulative) Date 28-Mar-2016 16-Nov-2018 14-Jun-2019 -- The total amount of contracts awarded through Framework Agreements in 2016 (RSD40bn) and 2017 (RSD63.2bn) already exceeds the cumulative target set across the three years (2016-18) of 96.9bn RSD. Verification of the achievement was completed by end of 2018 and disbursement of all remaining funds allocated to this DLI authorized in May 2019. Actual withdrawal of the authorized amount of EUR4,319,224 is expected in January 2020 based on communication from the Public Debt Administration. Comments PPO will inform WB, through MPALSG, about the progress of the DLI for 2018 to continue monitoring performance against this indicator. ►DLI 7 Number of Indirect Budget Beneficiaries included in the FMIS. (Output, 5,520,000.00, 60%) Baseline Actual (Previous) Actual (Current) Year 3= 2018 Value 0.00 318.00 529.00 526.00 Date 28-Mar-2016 16-Nov-2018 14-Jun-2019 -- Based on the data verified by the PPS, MoF, 318 IBBs were included in the FMIS by the end of 2017; and accordingly, 60% of associated amounts were authorized for withdrawal in October 2018. The MoF communicated to the Bank that by December 31, 2018 an additional group of indirect budget beneficiaries (IBBs) comprising social institutions, have been included in the budget execution Comments system, increasing the total number from 318 to 529, achieving fully the program target of 526 IBBs. Verification of the achievement has been completed and communicated to the Bank, Bank review and authorization for withdrawal will be processed in early FY20. 6/28/2019 Page 11 of 12 The World Bank Implementation Status & Results Report PforR on Modernization and Optimization of Public Administration (P155172) ►DLI 8 Percentage of commitments in budget execution system entered within the required deadline per the Law on Deadlines for Payment in Commercial Transactions. (Outcome, 11,040,000.00, 74%) Baseline Actual (Previous) Actual (Current) Year 3= 2018 Value 60.00 82.31 99.90 90.00 Date 28-Mar-2016 16-Nov-2018 14-Jun-2019 -- Based on preliminary data verified by the PPS, by the end of 2017, 82.31 percent of commitments were registered within three days, in accordance with the law. The Central Register of Invoices (CRI) was introduced in March 2018, requiring that each vendor registers their invoices upon issuing. Based on that, each invoice is assigned a unique identification number when it is being registered, which is a precondition for executing payment based on the invoices. In this way, the obligation for registering incurred commitments has been passed from debtor to vendor, which is intended to ensure credibility and timeliness of information. Comments Based on the CRI FMIS captures all payments and the MoF and Treasury Administration informed the Bank that as the result of this reform, the level of registered commitments reached close to 100 percent by the end of 2018, exceeding the program target of 90 percent. On average, about 390,000 invoices are being registered per month (13,000 per day). Verification of this has been completed and transmitted to the Bank; with the Bank's review and authorization for withdrawal planned for early FY20. 6/28/2019 Page 12 of 12