Implementation Status & Results Ukraine Public Finance Modernization Project (P090389)
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- Gervais Hampton
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1 Public Disclosure Authorized Public Disclosure Authorized losure Authorized Public Disclosure Authorized The World Bank Implementation Status & Results Ukraine Public Finance Modernization Project (P090389) Operation Name: Public Finance Modernization Project (P090389) Project Stage: Implementation Seq.No: 7 Status: ARCHIVED Last Modified Date: 21-Jun-2011 Country: Ukraine Approval FY: 2008 Product Line: IBRD/IDA Region: EUROPE AND CENTRAL ASIA Lending Instrument: Specific Investment Loan Implementing Agency(ies): Ministry of Finance Key Dates Board Approval Date 08-Jan-2008 Original Closing Date 30-Jun-2013 Planned Mid Term Review Date 31-Oct-2011 Last Archived ISR Date 11-Dec-2010 Effectiveness Date 23-Oct-2008 Revised Closing Date 30-Jun-2013 Actual Mid Term Review Date Project Development Objectives Project Development Objective (from Project Appraisal Document) The development objective of the proposed Project is to strengthen public financial management in terms of operational efficiency and transparency. Has the Project Development Objective been changed since Board Approval of the Project? Yes Component(s) Component Name No Component Cost Strengthening Institutional Capacity and Operational Effectiveness 2.58 Development of an Integrated Public Financial Management System Project Management 1.22 Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Unsatisfactory Overall Risk Rating Substantial Substantial Implementation Status Overview The Ministry of Finance project team has completed mutually agreed Country Portfolio Performance Review (CPPR) actions within the first half of Remaining Component 1 activities (advisory support for strengthening the PFM capacity) are expected to be completed in early Two major International Competitive Bidding (ICB) packages were announced in June 2010 and July 2010, respectively, for the development of integrated Public Financial Management System (PFMS) solutions. Related contracts are expected to be signed in October 2011, and increase the project disbursement rate significantly in The State Treasury (STU) management improved the existing information systems as interim solutions, and the implementation of accounting reforms is in progress according to the revised action plan. Despite these developments, project management practices need to be improved by the MoF officials to ensure timely completion of PFMS procurement process in Page 1 of 5
2 Results Project Development Objective Indicators Increased strategic alignment of the budget with the public policy priorities. Reduction of 20% in time required to get necessary information for managerial decisions through the use of an integrated managementand information platform. Increased transparency and reliability of public sector financial reporting through compliance with international accounting standards and alignment with EU accession requirements. Intermediate Results Indicators Text Value Existing budget formulation methodologies are not conducive for the use of budgets as a policy instrument budget law approved by Verkhovna Rada on Dec 23, Text Value Decision-making processes are delayed because information is fragmentedamong several systems and cannot be accessed efficiently. Baseline measurements are expected in Text Value Public Sector accounting is not compliant with ISA or EU accession requirements. 12 out of 24 IPSAS related revisions in accounting standards were completed. Revised plan (2010) for the introduction of changes in national accounting standards is being implemented. Fully functional PFMS in use during the execution of 2012 budget. Minimum of 20% reduction in average time for accessing information by key decisionmakers as measured by follow-up survey. Certification of compliance with international accounting standards. The MTBF and budget plans are prepared using a realistic macro-fiscal framework. Text Value Implementation of MTBF documents in budget process in progress. New MTBF in use. Date 25-Mar Jun Jan-2013 Related Component 1 activity (QCBS-1) will be fully completed in Page 2 of 5
3 Budget data and policy assumptions published in greater detail. Budget execution: Improving the system of PFM by means of modernizing accounting system in public administration sector. Internal financial control system is in line with international standards. Public Financial Management System (PFMS) established and functioning. MoF, STU and KRU staff trained in PFMS functionality and operations. Text Value Summary proposed budget and budget execution published on the Internet. Detailed budget reports published regularly on the web portal. Improvement of budget execution reporting will be possible after the implementation of integrated PFMS in Text Value Accounting and financial reports not unified in public administration sector, not aligned with the IAS budget executed through PFMS using new budget classification and unified chart of accounts. Date 25-Mar Jun Jan-2013 Related activities were combined under QCBS-7. Contract was signed in May Text Value Current system is not in line with international standards. Related Component 1 activity (CQS-3) was completed. Text Value Current PFM information systems are fragmented. Gradual implementation of the adopted documents. PFMS system fully operational. New budget codes and unified chart of accounts are used in PFMS. Staff and specialist training completed. ICB-1 was announced on June 15, ICB-2 was published on July 30, Contract signatures are expected in Text Value None currently trained. All staff training completed. Page 3 of 5
4 Internal business processes improved. Text Value Some outline procedures defined. Timely and comprehensive fiscal management reports produced. CQS-4 contract was signed. The first group of training activities is expected to be completed in July Improvements in PFM practices are expected to be visible after the implementation of integrated PFMS starting from Jan Text Value Currently financial reports are fragmented. Improvement of existing treasury system assisted in improvement of reporting. New PFMS solution is expected to improve budget performance reporting starting from Improved automated business processes in use. Timely fiscal reports produced during 2012 budget execution. Data on Financial Performance (as of 20-Jun-2011) Financial Agreement(s) Key Dates Project Loan No. Status Approval Date Signing Date Effectiveness Date Closing Date P IBRD Effective 08-Jan Mar Oct Jun-2013 P TF Closed 21-Sep Sep Sep Oct-2008 Disbursements (in Millions) Project Loan No. Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P IBRD Effective USD P TF Closed USD Disbursement Graph Page 4 of 5
5 Key Decisions Regarding Implementation The Minister and the Country Director will co-chair a workshop in July, for the presentation of PFM reform plans and target completion date, as well as the status of project components, to all stakeholders of the PFMP project by the component managers. The implementation of integrated Public Financial Management System (PFMS) information and communication technology solutions is expected to be initiated in 2011, and completed by Restructuring History There has been no restructuring to date. Related Projects There are no related projects. Page 5 of 5
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