AUDITED FINANCIAL STATEMENTS OF THE GUYANA SECONDARY EDUCATION IMPROVEMENT PROJECT FINANCING AGREEMENT Xg. 5473-GY AND 2. 6825-GY FOR THE YEAR ENDED 31 DECEMBER 2021 AUDITORS: AUDIT OFFICE 63 HIGH STREET KINGSTON GEORGETOWN GUYANA AUDITED FINANCIAL STATEMENTS OF THE GUAYANA SECONDARY EDUCATION IMPROVEMENT PROJECT FINANCING AGREEMENT NO. 5473-GY AND NO. 6825-GY FOR THE YEAR ENDED 31 DECEMBER 2021 TABLE OF CONTENTS PAGE 1 TRANSMITTAL LETTER 1 2 AUDITOR'S OPINION ON THE STATEMENT OF CUMULATIVE INVESTMENT 2 STATEMENT OF SOURCES AND USES OF FUNDS AND ASSET REGISTER 3 AUDITED STATEMENT OF CUMULATIVE INVESTMENT 5 STATEMENT OF SOURCES AND USES OF FUNDS AND ASSET REGISTER 4 AUDITOR'S OPINION ON THE ELIGIBILITY OF EXPENDITURE 17 5 AUDITOR'S OPINION ON THE DESGINATED ACCOUNT RECONCILIATION 19 6 AUDITED DESIGNATED ACCOUNT RECONCILIATION STATEMENT 21 7 AUDITOR'S OPINION ON COMPLIANCE WITH THE FINANCING AGREEMENT 22 AND THE RELEVANT LAWS AND REGULATION 8 COMPLIANCE WITH THE FINANCING AGREEMENT 24 9 MANAGEMENT LETTER 28 0f592?-225T-75,92 CtTl., 6-92-226 72"57, %/wv.uf4ty 254/IDA: 16/1/2022 21 June 2022 Mr. Alfred King Permanent Secretary Ministry of Education 26 Brickdam Georgetown. Dear Mr. King, RE: AUDIT OF THE FINANCIAL STATEMENTS OF THE GUYANA SECONDARY EDUCATION IMPROVEMENT PROJECT CREDIT AGREEMENT X2. 5473-GYAND N,f,6825-GY FOR THE YEAR ENDED 31 DECEMBER 2021 I forward herewith two (2) copies of the audited financial statements for the above-mentioned Project for the year ended 31 December 2021, together with the Report of the Auditor General and management letter thereon. Should you need any clarification or explanation, please do not hesitate to let me know. With kind regards. Yours sincerely, Ms. Dat Ln Pearson Audit Manager for Auditor General S592-225-75.920 6'4 c¶92-226'-7267 /4/we.eat yr 255/IDA: 16/1/2022 21 June 2022 Ms. Ingrid Bjerke Task Team Leader Human Development Department Latin America and Caribbean Regional Office World Bank 1818 H Street N.W Washington D.C 20433 USA. Dear Ms. Bjerke, RE: AUDIT OF THE FINANCIAL STATEMENTS OF THE GUYANA SECONDARY EDUCATION IMPROVEMENT PROJECT CREDIT AGREEMENT N. 5473-GYAND X2.6825-GY FOR THE YEAR ENDED 31 DECEMBER 2021 I forward herewith one (1) copy of the audited financial statements for the above-mentioned Project for the year ended 31 December 2021, together with the Report of the Auditor General and management letter thereon. Should you need any clarification or explanation, please do not hesitate to let me know. With kind regards. VtDawn Pearson> for Auditor General 1 (AA CtZW -59-22-7---59-9' 4' AG: 118/2022-1 21 June2022 REPORT OF THE AUDITOR GENERAL ON THE STATEMENT OF CUMULATIVE INVESTMENTS STATEMENT OF SOURCES AND USES OF FUNDS AND THE ASSET REGISTER OF THE GUYANA SECONDARY EDUCATION IMPROVEMENT PROJECT FINANCING AGREEMENTS (CREDIT X2. 5473-GY AND X2. 6825-GY) FOR THE YEAR ENDED 31 DECEMBER 2021 Opinion I have audited the Financial Statements of the Guyana Secondary Education Improvement Project which comprise the Statement of Cumulative Investments as of 31 December 2021, the Statement of Sources and Uses of Funds, and the Asset Register for the year then ended, and notes to the Financial Statements, including a summary of significant accounting policies. In my opinion, the accompanying Financial Statements of the Guyana Secondary Education Improvement Project for the year ended 31 December 2021 have been prepared in all material respects, in accordance with the financial reporting requirements of Section 4:09 of the General Conditions of Financing Agreements (Credit ff2. 5473-GY and X9. 6825-GY) dated 10 October 2014 and 19 February 2021, respectively, between the Government of Guyana and the International Development Association. Basis of Opinion I conducted my audit in accordance with International Standards on Auditing (ISAs) issued by the International Federation of Accountants (IFAC), the International Standards of Supreme Audit Institutions (ISSAls) and the Audit Act 2004. My responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of my report. I am independent of the Project in accordance with the ethical requirements that are relevant to my audit of the Financial Statements in Guyana, and 1 have fulfilled my other ethical responsibilities in accordance with these requirements. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion. 2 Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of the Financial Statements in accordance with the requirements established in Section 4:09 of the General Conditions of Financing Agreements (Credit M2 5473-GY and i2. 6825-GY) and for such internal control as management determines is necessary to enable the preparation of Financial Statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibilities for the Audit of the Financial Statements My objective is to obtain reasonable assurance about whether the Financial Statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes my opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs and ISSAIs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Financial Statements. As part of my audit in accordance with ISAs and ISSAls, I exercise professional judgment and maintain professional skepticism throughout the audit. I also: * Identify and assess the risks of material misstatement of the Financial Statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. * Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Project's internal control. * Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. * Evaluate the overall presentation, structure and content of the Financial Statements, including the disclosures, and whether the Financial Statements represent the underlying transactions and events in a manner that achieves fair presentation. 3 I communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit. AUDITOR GENERAL AUDIT OFFICE 63 HIGH STREET KINGSTON GEORGETOWN GUYANA 4 GOVERNMENT OF GUYANA MINISTRY OF EDUCATION Name of Project: GUYANA SECONDARY EDUCATION IMPROVEMENT PROJECT (GSEIP) CREDIT AGREEMENT No. 5473 - GY and 6825 - GY STATEMENT OF CUMULATIVE INVESTMENT FOR THE YEAR ENDED 31 DECEMBER 2021 Prior periods Prior periods Current Period Current Period . Cumulative Cumulative Ended Ended 31 December 2020 31 December 2020 31 December 2021 31 December 2021 USS GS US$ GS Credit No. 5473-GY 1. Goods, works, non-consulting services and consultants' services, training and 9.105,107.53 1.895,239927 14,101.56 2,940,175 operating costs under project I Sub-total 9,105,107.53 1,895,239,927 14,101.56 2,940,175 Additional Financing - Credit No. 6825-GY 1. Goods, works, non-consulting services and consulting services for parts A, B and 0 0 1,697,087.78 353,842,802 C of the project 2. Emergency Expenditures under part D of 0 0 0 0 the project Sub-total - 1,697,087.78 353,842,802 Grand Total 9,105,107.53 1,895,239,927.08 1,711,189.34 356,782,977.39 .. .. .. .. .. . .. . .. . .. . .. . Ms. Zorina Ga nor Mr. fred King Project C ord ator/Engineer Permanent Secretary Ministry of Education Ministry of Education The accompanying notes form an intergral part of these financial statements GOVERNNENI OF GIYANA MINISTRY OF EDLCAIION Namc of Project: GUYAN A SECONDARY EDVLI'AT[ON IMPRONEMENTP ROJECT (GSEwI) (REDITAGRiNENTNo. 5473- GYand 6825- GY STATENIENT OF SOURCES AND VSES OF FI NDS FOR T11F YEAR ENDEI) 31 DICEUBFR 2021 PRE MIOLS ER 2020 CURREN'YFAR ENDE) 31 DE'CEBER 2021 CIlMMILATIVE AS AT 31 CUM.M LATIVE AS AT 31 .31 DFCENDBER 2020 DECENIBER 2021 DECENIBER 2021 RECEIPTS IDA 5473-GY lDA 5473-G Y Additional Financing - IDA lDA 5473-GY Additional Financing - IDA 6825-GY 6825-CY TOTA l World Bank S$ GS i SS GS SS GS SS GS 9,119,209,09 1.893,203.339 0 0 3.292.86000 686.56 1310 9.1 9,209.09 1.893,203339 3-292.860.00 686.561.3 10 12,1 2 069 09 2,579.764,649 Otlier diisefemet melods 0 0 0 0 0 0 0 0 0 0 0 0 iovcrnmnt - Sale ofbid documents 2,370.19 490,533 0 0 2370.19 490.533 0 0 2.370.19 490533 Total Reccipts (A) 9,121,579.28 1,893,693,872 0 0 3,292,860.00 686,561,310 9,121,579.28 1,893,693,872 3,292,860.00 686,561,319 12,414,439.28 2,580,255,182 LESS EXPENDITI RES BY COMPONENT (omonl)Olenlt l - Strengthcn the Capacfty of Secondary School Mathematics Tachers Natonwide 144.536 237270,125 0 0 0 0 1. 44,553.36 237,270 125 0 0 1.144,553 36 237.270 12 Component 2 - Expansion ofÄGeneral Secondary School Iacilities 6.852,878 11 1.428.332.464 0 0 1,542.387.41 321.587,775 6,852.878.11 1,428,332.464 1.542,387.41 321,587,775 8.395.265.52 1.749,920239 (Componeni 3 - Sirengtlien Insltitional Capacity and Proleet Managemenc 1. 107676.06 229,637.338 14,101.56 2 940 175.26 154,70037 32,255.027 1. 121.777.62 232.577,513 154.700.37 32.255,027 1276,477.99 264,832.540 Total Expendituires (Bl) 9,105,107.53 1,895,239,927 14,101.56 2,940 175,26 1,697,087.78 353,842,802 9,119,209.09 1,898,180,102 1,697,087.78 353,842,802 10,816,296.87 2,252,022,904 RECEIPTS ISS EXPENII- RES (A-B) 16,471.75 (1,546,055) (14,101.56) (2,940,175.26) 1,i95,772.22 332,718,508 2,370.19 (4.486,230) 1,595,772.22 332,718,508 1,598,142.41 328,232,278 Forcign Excliange Adljustment 0 4.980,414 0 1170) 0 0 4,980.244 0 0 0 4.980.244 NET' BLANCH 16,471.75 3,434,360 (14,101,56) (2,9411,345.26) 1,595,772.22 332,718,508 2.370,19 494,014 1,595,772.22 332,718,508 1,598,142 333,212,522 BANK BAILANCES Opening Cash Balances Designaled Account 2,398,109.15 50(1005,758 - Project Account 228,531 62 47,648,842 16,471.75 3,434,360' Total Opening Balance 2,626,640.77 547,654,600 16,471.75 3,434,360 ('tosing Cash Balances Designated Account 0 0 1,339,482.66 279-282,1,35 Project Account (Note 3 (b) 16,471.75 3,434.360 258,658.93 53,930.387 Total (losing Balancc 16,471.75 3,434,360 1,598,141.59 333,212,522 MIs Zorina Gafoo Kn Prijec onGna r/nine Mr, ffred King Piojet CooEucin Permanent Secretary Mlinistry of Vlducatin NMinistry of lEdu[catior The accompanying notes form an intergral part of hese financial statemenis GOVERNMENT OF GUYANA MINISTRY OF EDUCATION Name of Project: GUYANA SECONDARY EDUCATION IMPROVEMENT PROJECT (GSEIP) CREDIT AGREEMENT No. 5473 - GY and 6825 - GY ASSET FOR THE YEAR ENDED 31 DECEMBER 2021 ASSET GROUP OPENING COST ADDITION CLOSING COST CLOSING COST US$ US$ US$ G$ Math Technical Group 13,866.73 0 13,866.73 2,863,480 National Centre for Educational Resource Development (NCERD) 266,308.57 0 266,308.57 54,992,729 MIS Building 63,699.76 0 63,699.76 13,154,000 Office Furniture and equipment 16,237.79 6,552.74 22,790.53 4,719,350 Total 360,112.85 6,552.74 366,665.59 75,729,550 - - - - . .. GOVERNMENT OF GUYANA MINISTRY OF EDUCATION Name of Project: GUYANA SECONDARY EDUCATION IMPROVEMENT PROJECT (GSEIP) CREDIT AGREEMENT No. 5473-GY and 6825-GY NOTES TO THE FINANCIAL STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2021 1. PROJECT DESCRIPTION The Guyana Secondary Education Project (GSEIP) IDA Financing No. 5473-GY and Additional Financing 6825-GY are agreements between the Co-operative Republic of Guyana (the Recipient) and the International Development Association (the Association). The original agreement was signed on October 10, 2014 and the additional financing was signed on the 10 March 2021. The Project date of effectiveness for the original financing was 25 November 2014 and the additional financing 10 March 2021 and closing date being June 30, 2023. (Further to the Government of Guyana request: The project original closing date upon signing agreement was 31 March 2020, however this was amended, extension was granted for six months ended 30 September 2020. The project was granted affurther extension ofsix months on 28 September 2020 ending 31 March 2021.The project was given a further extension to accommodate the additional financing agreement, new closing date being June 30, 2023) The total cost of the project is a credit of Sixteen Million Special Drawing Rights (SDR 16,000,000). Original financing is Six Million Five Hundred Thousand Special Drawing Rights (SDR 6,500,000) equivalent to Ten Million United States Dollars (US$10,000,000) and Additional financing is Nine Million Five Hundred Thousand Special Drawing Rights (SDR 9,500,000) equivalent to Thirteen Million Five Hundred Thousand United States Dollars (US$13,500,000). The recipient of the funds under the GSEIP is the Ministry of Finance. The Project is implemented by the Ministry of Education. The table specifies the categories of Eligible Expenditure that may be financed out of the proceeds of the Financing, the allocation of the amounts of the Grant to each category, and the percentage of expenditure to be financed for Eligible Expenditures in each category. Original Financing (5473-GY): Category Amount of the Financing Percentage of Expenditure Allocated to be financed (inclusive of (expressed in SDR) Taxes) 1) Goods, works, non- consulting services, consultants' services, 6,500,000 100% Training and Operation Costs for the Project. TOTAL AMOUNT 6,500,000 GOVERNMENT OF GUYANA MINISTRY OF EDUCATION Name of Project: GUYANA SECONDARY EDUCATION IMPROVEMENT PROJECT (GSEIP) CREDIT AGREEMENT No. 5473-GY and 6825-GY NOTES TO THE FINANCIAL STATEMENT - CONT'D FOR THE YEAR ENDED 31 DECEMBER 2021 Additional Financing (6825-GY): Category Amount of the Financing Percentage of Expenditure Allocated to be financed (inclusive of (expressed in SDR) Taxes) 1) Goods, works, non- consulting services, consulting services for 9,500,000 100% part A, B and C of the Project. 2) Emergency Expenditures under 0 100% Part D of the Project TOTAL AMOUNT 9,500,000 The objectives of the SEIP will be achieved through the following three (3) components: 1. Strengthen the Capacity of Secondary School Mathematics Teachers Nationwide (US$3.627 M); 2. Expansion of General Secondary School Facilities (US$18.741M); and 3. Strengthen Institutional Capacity and Project Management (US$2.341 M) Component 1: Strengthen the Capacity of Secondary School Mathematics Teachers Nationwide (US$ 3.627 million). The objective of this component is to improve content knowledge and instructional skills of secondary school mathematics teachers to enhance their effectiveness in the classroom, and is comprised of three (3) sub-components. Sub-component 1.1-In-Service Mathematics Teacher Training and Un2rading (US$1275 million). Carrying out the following activities (i) a diagnostic assessment of mathematics teachers (ii) training and workshops for master trainers from the Ministry of Education and the National Centre for Education Resource Development (NCERD) to deliver in-service training to all public secondary school mathematics teachers; (iii) design, development and provision of modular, iterative, competency-based training for all secondary mathematics teachers; (iv) in all public secondary schools, distribution of mathematics teaching aids to promote the application of training in the classroom and improved student learning; and (v) development of comprehensive website for an on- line community of practice for mathematics teachers in the country. Teachers would be formally assessed at the end of each training course (a key Project indicator). This training would be closely followed up by regular supervision visits by master trainers (3 times per GOVERNMENT OF GUYANA MINISTRY OF EDUCATION Name of Project: GUYANA SECONDARY EDUCATION IMPROVEMENT PROJECT (GSEIP) CREDIT AGREEMENT No. 5473-GY and 6825-GY NOTES TO THE FINANCIAL STATEMENT - CONT'D FOR THE YEAR ENDED 31 DECEMBER 2021 year per school, including in hinterland regions), who would observe teachers' practice and provide immediate feedback. In addition, Regional Education Officers (REDOs) and District Education Officers (DEOs) will play a key role in all training, supervision and project monitoring activities. REDOs and DEOs will help coordinate and participate in the teacher professional development workshops and school visits. At the regional level monthly Mathematics Subject Committee Meetings would be held for all Mathematics Department Heads, reinvigorating an existing policy that has not been rigorously implemented. Subject Committee Meetings would be carefully planned, structured and offered each month to address specific learning objectives and to share experiences facilitated by mathematics instructional specialists and coordinated by Regional and District Education Officers. At the school level, Department Heads for Mathematics would organize monthly meetings for all math teachers to share lesson plans, teaching methods, knowledge and skills from regional Subject Committee Meetings, and to prepare new lessons and learning activities together. The Project will also provide information through initial training sessions to ensure the buy-in and support of all School Heads and to emphasize their responsibility as school leaders and agents of change for the whole school and beyond mathematics. The project would finance procurement of laptops and LCD projectors to support the regional meetings. Meanwhile, the GoG has committed to provide sufficient funding each year in the MoE's budget to provide required logistical support (supplies, transportation, snacks, etc.). The establishment of an on-line "community of practice" among all mathematics teachers, via a comprehensive website would enable teachers to inter alia access on-line instructional resources, share lesson plans, pose questions to fellow teachers and mathematics experts, post blogs, review CSEC mathematics study guides, and exchange experiences with fellow mathematics teachers through internal email. This community of practice would be facilitated by the Mathematics Technical Group, which is composed of mathematics specialists from the MoE, NCERD, CPCE and UG. The project would finance technical assistance, materials, training activities, supervision logistics and procurement/distribution of teaching aids. Sub-component 1.2 - Revising Secondary School Teachers Appraisal Instruments (US$200,000). Improving mathematics instruction through: (i) the development of specific standards for mathematics instruction; (ii) the revision of the appraisal system for secondary school teachers and school principals; and (iii) the provision of training for secondary school principals, deputy principals, and master trainers in the use of the revised teacher appraisal instruments. Sub-component 1.3 -Technology-assisted Learning in Mathematics (US$2,152.550): Carrying out the following activities: (i) improvement of mathematics instruction and learning through the use of innovative technology, on a pilot basis; and (ii) an independent process evaluation to assess the effectiveness of different packages of tablets and on-line mathematics learning management systems for improving student learning outcomes in mathematics. GOVERNMENT OF GUYANA MINISTRY OF EDUCATION Name of Project: GUYANA SECONDARY EDUCATION IMPROVEMENT PROJECT (GSEIP) CREDIT AGREEMENT No. 5473-GY and 6825-GY NOTES TO THE FINANCIAL STATEMENT - CONT'D FOR THE YEAR ENDED 31 DECEMBER 2021 Specifically, this would be piloted in 8 secondary schools over three years promoting innovation and providing lessons for possible future scaling up. Tablets would be distributed to all Grade 7 students in the 8 pilot schools, for both school and home use, with the capability to download and operate a range of self-paced mathematics software applications. This cohort would be followed for three years. LCD projectors and basic servers would also be provided to each school, so on-line resources can be downloaded and stored at the school level and accessed offline. After receiving training, teachers would post regular "reflection blogs" regarding their experiences and questions to a website set up for this purpose. A more qualitative, process-focused evaluation would be conducted to gather teacher and student feedback, assess technology adoption, review online resources prepared by participating teachers, and compare outcomes with a set of control schools. The project would finance technical assistance, procurement of hardware and software, training and evaluation activities. Then secondly: An Expanded Pilot for Technology Assisted Learning through a repeat of the initial pilot with an expanded cohort and the establishment of Smart Classrooms and Environments Consequent to the implementation and evaluation of the first pilot, the expanded pilot will take on board the lessons and specifically, target 25 assessed secondary schools, spread across the country over the remaining life of project. The pilot with its aim of promoting innovation will seek to better the first pilot and provide lessons for possible future scaling up. Each of the expanded pilot school would be equipped with four class sets of tablets and other associated hardware such as charging stations, servers etc that will allow the participating schools to involve 140 students at the Grade 7 level. Each class set will consist of thirty five (35) tablets for the students and one (1) for the teacher. Additionally, ten (10) schools from the list of twenty (25) participating in the expanded Tablet Pilot will be equipped with a smart-class and a smart-trolley both consisting of 36 pieces of Tablets and the other identified equipment. These 10 smart classes and 10 trollies (for smart environment) is meant to complement the tablets and allow for the twinning of schools that may not have the specialist Math teachers. These class sets of tablets and smart classes/environment would be utilized by all Grade 7 students in the pilot schools during their Math timetabled period. The tablets would allow for the capability to download and operate a range of self-paced mathematics software applications that would be twinned with the local curriculum. Following assessments of the 25 schools' Math Performance at the CXC, Connectivity, Physical space/room, and the presence of a trained IT Teacher, the selected schools will form the cohort and would be followed for the remaining life of the project, until June 2023 . Equipment would include Tablets, basic servers (so on-line resources can be downloaded and stored at the school level and accessed offline), Charging stations for those schools that will be used in the Pilot. Additionally, Smart Podiums, conference Cameras, Servers, Smart Class management software, chairs, collaborative Desk, battery backup, wallmount screens, fully loaded Classroom trolley and surround GOVERNMENT OF GUYANA MINISTRY OF EDUCATION Name of Project: GUYANA SECONDARY EDUCATION IMPROVEMENT PROJECT (GSEIP) CREDIT AGREEMENT No. 5473-GY and 6825-GY NOTES TO THE FINANCIAL STATEMENT - CONT'D FOR THE YEAR ENDED 31 DECEMBER 2021 sound speakers would be procured for the ten (10) schools that would also have smart classroom and smart environments. The equipment would allow for the infusion of technology with the Math Curriculum, in addition to the twinning of schools (via the smart class) ensuring that the weak schools with no specialist teacher can benefit from those with strong Mathematics programme .This will see schools delivery being strengthened and varying forms of teaching strategy via the use of the technology utilized, especially in these difficult times such as during the COVID 19 Pandemic. After receiving training (virtual and face to face), teachers would post regular "reflection blogs" regarding their experiences and questions to the recently developed online platform set up for this purpose. A more qualitative, process-focused evaluation would be conducted to gather teacher and student feedback, assess technology adoption, review online resources prepared by participating teachers, and compare outcomes with a set of control schools. The project would finance technical assistance, procurement of hardware and software, training and evaluation activities. Component 2: Expansion of General Secondary School Facilities (US$ 18,241,259). Expand access to General Secondary School services in underserved areas of Regions 3 and 4 of the Recipient, through: Sub-component 2.1- New School Construction (US$16.344 million): Construction of three new General Secondary Schools (one in Region 3 and two in Region 4), pursuant to the specifications set forth in the Project Operation Manual. The three new schools would create a total of 2,800 student places. The main goal is to consolidate nearby Secondary Department (SD) of primary schools into these new GSSs, but also to prepare for increasing student populations coming from discrete primary schools in these regions and ease some crowdedness in surrounding GSSs. There are 10 SDs with a total number of 728 students in Region 3, and 17 with a total number of 1,257 students in Region 4. In addition, two of the new GSSs would be located in new housing areas where hundreds of new homes are in the process of being built and no schools exist. The basic design and architectural plans already exist from recently constructed GSSs financed through domestic resources; although they need to be revised, this should accelerate bidding and implementation of the civil works. This sub-component includes the design and supervision fees. Sub-component 2.2 - Provision of Furniture and Equipment for the New Schools (US$1,897.010). This would finance procurement of classroom furniture, laboratory equipment and basic technology for the three new GSSs to ensure that the new schools provide the necessary learning conditions to offer the full secondary education curriculum. Component 3: Strengthen Institutional Capacity and Project Management (US$ 1.764 million). This component is to strengthen the capacity of the Education Management Information System (EMIS) through design, development and implementation of a new EMIS to increase efficiency in education sector data management and information use for planning and policymaking. GOVERNMENT OF GUYANA MINISTRY OF EDUCATION Name of Project: GUYANA SECONDARY EDUCATION IMPROVEMENT PROJECT (GSEIP) CREDIT AGREEMENT No. 5473-GY and 6825-GY NOTES TO THE FINANCIAL STATEMENT - CONT'D FOR THE YEAR ENDED 31 DECEMBER 2021 Sub-component 3.1 - Design, develop and implement a new education management information system to increase efficiency in education sector data management and information use for planning and policymaking (US$200.000). This would increase efficiency in education sector data management and information use for planning and policymaking. This would include design, development and implementation of a new EMIS, which would enable school heads, Regional Education Officers (REDOs) and MoE pelicymakers to more efficiently manage education sector data and use information for more effective planning and policymaking. The project would finance procurement of EMIS software and hardware, two tablets for each GSS for school-level uploading/downloading of data(including a keyboard accessory as necessary), technical assistance and training, as well as tablets for REDOs and the central MoE MIS unit. The EMIS would capitalize on the GoG's "e-government initiative", which has set up a large national data center and is establishing 4G wireless connectivity covering approximately 80 percent of the population (to be operational in August 2014). The vast majority (approximately 85 percent) of secondary schools are located within this high-speed wireless area, so they will have free connectivity, easy uploading and access to education information with their tablets, and free hosting of the EMIS software and database. The REDOs and DEOs will be in charge of supervising the implementation of the new EMIS at the school level. Sub-component 3.2 - Carrying out Project management, monitoring and evaluatio;i, and audits (US$1,431,191). This would carry out project management, monitoring and evaluation, and auditing activities. 2. BASIS OF PREPARATION The Financial Statement have been prepared in accordance with International Public Sector Accounting Standards (IPSAS) with particular emphasis on Cash Basis Financial Reporting under the Cash Basis of Accounting which recognizes transactions and events only when cash is received or paid by the Project. Translation of local currency United States currency (US$) is translated to local currency (GY$) at the rate of exchange at Bank of Guyana on the date the funds are deposited into the local currency account that supports the US$ designated account held at Bank of Guyana. Local currency disbursed is translated to US$ at the same rate at which the US$ funds were received into the local currency account. The rate of exchange during the period in the conversion of Guyana currency to United States currency GY$208.5 = US$1. There were no foreign exchange gain or loss during the financial period. GOVERNMENT OF GUYANA MINISTRY OF EDUCATION Name of Project: GUYANA SECONDARY EDUCATION IMPROVEMENT PROJECT (GSEIP) CREDIT AGREEMENT No. 5473-GY and 6825-GY NOTES TO THE FINANCIAL STATEMENT - CONT'D FOR THE YEAR ENDED 31 DECEMBER 2021 3. AVAILABLE CASH BALANCES a) Closing balances as at 31 December 2021 US$ i. Crown Agents Bank Account No. 33681111 1,339,482.66 ii. Bank of Guyana No.0162700406008 258,027.86 Total 1,597,510.52 b) Project local account Local account - US$258,027.86 Petty cash - US$ 631.07 Balance in project local account US$258,658.93 4. DESIGNATED ACCOUNT (a) In accordance with the Disbursement letter the Designated Account was established to deposit advances withdrawn from the Credit to facilitate eligible expenditure. During the period under review advances made by World Bank to the Designated Account in the sum of US$3,292,860 through withdrawal application No. 1 and 2 (under the additional financing). (b) During the period under review, disbursements were made for a total amount of US$1,711,189.34 as follows: i. Documented expenditure amount for a total sum of US$1,431,603.86 through withdrawal application No. 26 (original financing US$14,101.56) and 2,3,& 4 (additional financing US$1,417,502.30) ii. Expenditure made during the current period under review documented after 31 December 2021 for a total sum of US$279,585.48 through withdrawal applications No. 5 5. SOURCES AND USE OF FUNDS The Statement of Sources and Uses of funds represent expenditures, which are paid in the period. Fixed assets and inventory of books are considered as expenditures under the Programme. GOVERNMENT OF GUYANA MINISTRY OF EDUCATION Name of Project: GUYANA SECONDARY EDUCATION IMPROVEMENT PROJECT (GSEIP) CREDIT AGREEMENT No. 5473-GY and 6825-GY NOTES TO THE FINANCIAL STATEMENT - CONT'D FOR THE YEAR ENDED 31 DECEMBER 2021 6. EXCHANGE RATE GAIN/LOSS Original Financing - Credit No. 5473-GY During the period under review there was a total deficit of US$880,790.91 due to the decline in the exchange rates SDR versus US dollars from 1.53846154 as at 10 October 2014 to 1.4029552446 as at 31 December 2021. Loan SDR USD At Signing 10 October 2014 6,500,000.00 10,000,000.00 As at 31 December 2021: Undisbursed Funds 0.00 0.00 Add: Disbursed Advances 6,500,000.00 9,119,209.09 Total Funds Available 6,500,000.00 9,119,209.09 Loss due to SDR movement 880,790.91 Additional Financing - Credit No. 6825-GY During the period under review there was a total deficit of US$157,435.08 due to the decline in the exchange rates SDR versus US dollars from 1.421052631578947 as at 10 March 2021 to 1.404480517894737 as at 31 December 2021. Loan SDR USD At Signing 10 March 2021 9,500,000.00 13,500,000.00 As at 31 December 2021: Undisbursed Funds 7,180,463.51 10,049,704.92 Add: Disbursed Advances 2,319,536.49 3,292,860.00 Total Funds Available 9,500,000.00 13,342,564.92 Loss due to SDR movement 157,435.08 GOVERNMENT OF GUYANA MINISTRY OF EDUCATION Name of Project: GUYANA SECONDARY EDUCATION IMPROVEMENT PROJECT (GSEIP) CREDIT AGREEMENT No. 5473-GY and 6825-GY NOTES TO THE FINANCIAL STATEMENT - CONT'D FOR THE YEAR 31 DECEMBER 2021 7. KEY MANAGEMENT /ORGANISATION STRUCTURE 7.1 According to the Credit Agreement, the organization structure should comprise a Project Coordinator, Project Engineer, Procurement Officer, Finance Officer, M&E Officer and a Finance Assistant. 7.2 The organization chart reflecting the reporting relationship is seen below: MINISITER OF EDUCATION PERMANENT SECRETARY DIRECTOR OF CHIEF EDUCATION PLANNING OFFICER OFFICER DIRECTOR OF SUBJECT SECONDARY EMIS UNIT SEIP ICT SPECIALIST IN DEPARTMENT COORDINATOR MATHEMATIC MATHEMATICS SPECIALISTS PROJECT PROCUREMENT FINANCE M & E ENGINEER OFFICER OFFICER OFFICER CPCE / UG LECTURERS FINANCE MATHEMATICS ASSISTANT 1002, 6-)'k~