Public Disclosure Copy The World Bank Implementation Status & Results Report Public Financial Management Improvement and Consolidation Project (P133424) Public Financial Management Improvement and Consolidation Project (P133424) AFRICA | Sierra Leone | Governance Global Practice | IBRD/IDA | Investment Project Financing | FY 2014 | Seq No: 7 | ARCHIVED on 18-Jan-2018 | ISR31175 | Implementing Agencies: Republic of Sierra Leone, GOVERNMENT OF SIERRA LEONE, MOFED, Government of Sierra Leone Key Dates Key Project Dates Bank Approval Date:27-Nov-2013 Effectiveness Date:19-Sep-2014 Planned Mid Term Review Date:17-Oct-2016 Actual Mid-Term Review Date:17-Oct-2016 Original Closing Date:31-Mar-2018 Revised Closing Date:31-Mar-2020 Project Development Objectives Project Development Objective (from Project Appraisal Document) The project development objective (PDO) is: “to improve budget planning and credibility, financial control and accountability, and legislative and public oversight in the management and use of government finances in Sierra Leone”. Through strengthened institutional capacity for the delivery of effective PFM and oversight, the project will contribute to enhancing fiscal discipline, strategic allocation of resources, and service delivery efficiency. With this objective, a sound PFM system will be established and nurturedunder the proposed project to contribute to poverty reduction as: (i) it serves as a prerequisite for long-term and sustainable poverty reduction, enabling the country to manage its own development; (ii) it helps ensure that budget planning and discipline are compatible with macroeconomic stability, resource allocation is in line with poverty reduction strategies, activities are implemented efficiently, and results are followed up; (iii) national policies are transformed into actions through the PFM system, and services are delivered; and (iv) democratic governance entails democratic control over resources. In order to achieve the PDO, the Project will support the implementation of priority reform actions identified in the GoSL approved PFM Reform Strategy (2014-2017) which was developed under the following key themes: (i) Budget Planning, Comprehensiveness, and Credibility; (ii) Financial Control and Accountability, Service Delivery and Oversight; (iii) Revenue Mobilization; and (iv) Strengthening Local Governance Financial Management through Local Councils for Effective Decentralization. It will establish tangible improvements in budget credibility, coverage, and realism through improvements in macro-fiscal planning and forecasting, budget compilation and comprehensiveness, it will instill improved internal and external controls and accountability processes in expenditure management for enhanced service delivery, it will strengthen revenue collection, accounting and reporting as a basis for improved fiscal management; it will strengthen the capacity of the decentralized service delivery arm of government (the local councils) to plan and account for the resources transferred to them; and it will support the overall governance and management platform for coordinating and monitoring the implementation of not only thePFM reform project but the PFM reform strategy as a whole. The PFM Reform Strategy objectives against each of the themes have beenaccordingly built in the relevant components of the proposed project for efficiency and for the sake of operational implementationof the project. The strategy is anchored on five basic criteria: sequencing of major actions; simplicity and realism; lessons learnedin prior reforms; ownership and sustainability; and partnership and collaboration. Project Beneficiaries: The beneficiaries of theProject will include: the Ministry of Finance and economic Planning (Comptroller and Accountant General’s Department, Budget Bureau, PFM Reforms Unit, Aid and Debt Management Unit, and Macro-Fiscal Analysis Unit), National Revenue Authority, Audit Service of Serra Leone, the Finance and Appropriations Committee and the Public Accounts Committee of Parliament, National Public Procurement Authority, Local Councils. MDAs will also be key stakeholders and beneficiaries of the reforms supported under the project. In addition, the Project will benefit the non-state actors in executing their demand-side oversight responsibilities in the area of PFM. Has the Project Development Objective been changed since Board Approval of the Project Objective? Yes 1/18/2018 Page 1 of 11 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Public Financial Management Improvement and Consolidation Project (P133424) Board Approved Revised Project Development Objective (If project is formally restructured)PHRPDODEL The modified project development objective reads as follows: to improve the public financial management system and accountability in the use of government finances. Components Name Component 1: Strengthening Budget, Financial, Procurement, and Taxation Systems:(Cost $24.48 M) Component 2: Improving PFM Oversight and Accountability Systems:(Cost $4.95 M) Component 3: PFM Reform Coordination and Project Management:(Cost $2.28 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  Substantial Implementation Status and Key Decisions • The ISR results reflect Mission conducted between December 04-06, 2017. The ratings on the progress towards achievement of the Project Development Objective (PDO) and Implementation Progress (IP) remain Moderately Satisfactory. • IFMIS Roll out: There was no progress on the planned last 24 sites owing to absence of the IFMIS Project Manager. Government is in the process of implementing some of the recommendations outlined in the IFMIS Audit Report; the IFMIS strategy has not been developed. • International Procurement Specialist-Government filled this position in February 2017 and May 2017 but the incumbents resigned within three months. Temporary procurement team has been put in place to cater to the procurement processes of the PFMICP. • IFMIS Independent review: A number of core issues have been raised. The same consultants were contracted to assist the Government develop an IFMIS and ICT strategy. The strategy has been developed and Government is in the process of implementing some of the recommendations, but there are delays in implementing the IFMIS governance structure of IFMIS and hiring of a project manager. • ITAS systems at NRA: The evaluation of the ITAS has taken unduly long affecting the timely implementation.The NRA has been implored to hasten the evaluation and requisite submission. • Audit Committees: The Government was advised to pilot the Audit Committees in the top five Ministries in government expenditure, and use the experience gained to escalate the function to other ministries instead of the current wholesale approach which is not working. 1/18/2018 Page 2 of 11 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Public Financial Management Improvement and Consolidation Project (P133424) 1/18/2018 Page 3 of 11 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Public Financial Management Improvement and Consolidation Project (P133424) 1/18/2018 Page 4 of 11 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Public Financial Management Improvement and Consolidation Project (P133424) 1/18/2018 Page 5 of 11 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Public Financial Management Improvement and Consolidation Project (P133424) Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance  --  Substantial  Substantial Macroeconomic  --  Substantial  Substantial Sector Strategies and Policies  --  Moderate  Moderate Technical Design of Project or Program  --  Moderate  Moderate Institutional Capacity for Implementation and Sustainability  --  Substantial  Substantial Fiduciary  --  Substantial  Substantial Environment and Social  --  Low  Low Stakeholders  --  Moderate  Moderate Other  --  Substantial  Substantial Overall  --  Substantial  Substantial Results 1/18/2018 Page 6 of 11 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Public Financial Management Improvement and Consolidation Project (P133424) Project Development Objective Indicators PHINDPDOTBL  Average time of quarterly budget release to MDAs within start of quarter (Weeks, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 5.00 2.80 2.80 2.00 Date 31-Aug-2013 31-Oct-2016 05-Dec-2017 31-Mar-2020 PHINDPDOTBL  Increase in customs revenues paid into the Consolidated Revenue Fund, adjusted for inflation (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 20.00 30.00 2.23 50.00 Date 31-Aug-2013 31-Oct-2016 05-Dec-2017 31-Mar-2020 PHINDPDOTBL  Percentage of contracts (by value) awarded in the fiscal year through open competitive procurement (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 85.00 95.00 Date 13-Mar-2013 -- 05-Dec-2017 31-Mar-2020 PHINDPDOTBL  Timely submission of the audited report of the public accounts to the legislature (in months from submission of the audit report by the Auditor General) (Months, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 8.00 -- 8.00 6.00 Date 31-Aug-2013 -- 05-Dec-2017 31-Mar-2020 PHINDPDOTBL  Non-state actors and citizens participating in annual budget discussions (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target 1/18/2018 Page 7 of 11 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Public Financial Management Improvement and Consolidation Project (P133424) Value 0.00 50.00 106.00 250.00 Date 13-Mar-2013 31-Oct-2016 05-Dec-2017 31-Mar-2020 Overall Comments Intermediate Results Indicators PHINDIRITBL  Coverage of internal audit (as % of total expenditures) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 10.00 -- 63.00 65.00 Date 27-Jun-2017 -- 05-Dec-2017 31-Mar-2020 PHINDIRITBL  Percent of Audit Committee recommendations on quarterly internal audit reports of MDAs that are implemented (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 26.40 13.00 50.00 Date 31-Aug-2013 31-Oct-2016 13-Dec-2017 31-Mar-2020 PHINDIRITBL  Percentage of public procurement professionals within GoSL trained in e-Procurement processes (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 90.00 Date 27-Jun-2017 27-Jun-2017 27-Jun-2017 31-Mar-2020 1/18/2018 Page 8 of 11 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Public Financial Management Improvement and Consolidation Project (P133424) PHINDIRITBL  Percentage of trainees female (Percentage, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 18.00 18.00 50.00 Date 27-Jun-2017 31-Oct-2016 05-Dec-2017 31-Mar-2020 PHINDIRITBL Daily report of revenues based on ASYCUDA++, DTIS (or substitute), CS DRMS, BoSL interfaced with IFMIS (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N Y Y Y Date 31-Aug-2013 31-Oct-2016 05-Dec-2017 31-Mar-2020 PHINDIRITBL  30 largest MDA budget heads with annual procurement plans within annual budget ceiling (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 4.00 19.00 19.00 30.00 Date 31-Aug-2013 31-Oct-2016 05-Dec-2017 31-Mar-2020 PHINDIRITBL  MDAs processing transactions real-time from IFMIS at respective rolled-out site (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 7.00 30.00 30.00 54.00 Date 31-Aug-2013 31-Oct-2016 05-Dec-2017 31-Mar-2020 1/18/2018 Page 9 of 11 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Public Financial Management Improvement and Consolidation Project (P133424) PHINDIRITBL  Ratio between actual primary expenditure and original budgeted primary expenditure (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 121.00 109.00 128.20 107.00 Date 31-Aug-2013 31-Mar-2017 05-Dec-2017 31-Mar-2020 Overall Comments Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P133424 IDA-53500 Effective USD 12.00 12.00 0.00 8.30 2.98 74% P133424 IDA-60780 Effective USD 10.00 10.00 0.00 0.00 10.31 0% P133424 TF-17201 Effective USD 4.60 4.60 0.00 4.60 0.00 100% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P133424 IDA-53500 Effective 27-Nov-2013 17-Jan-2014 19-Sep-2014 31-Mar-2018 31-Mar-2020 P133424 IDA-60780 Effective 07-Jun-2017 27-Jul-2017 27-Oct-2017 31-Mar-2020 31-Mar-2020 P133424 TF-17201 Effective 25-Jul-2014 25-Jul-2014 19-Sep-2014 31-Mar-2018 31-Mar-2018 Cumulative Disbursements 1/18/2018 Page 10 of 11 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Public Financial Management Improvement and Consolidation Project (P133424) Restructuring History There has been no restructuring to date. Related Project(s) P162667-Public Financial Management Improvement and Consolidation -Additional Financing Project 1/18/2018 Page 11 of 11 Public Disclosure Copy