Financial Attest Audit Report on the Accounts of COVID-19 Response, Recovery and Resilience in Education Project Ministry of Federal Education and Professional Training (GPE Grant No TFOB3319) For the Financial Year 2020-21 Auditor General of Pakistan Islamabad TABLE OF CONTENTS list o f A bbrev iatiOn s ..............................---.---.--.--.······.-.-.-... . P R E F A I ................... ...........-.--- .--.--.···.-------. . P a r t-I .........................1..............-..--- -.--·· ........ . PRO JECI OVLRVIVWEW .2 . . ..-------- ................... 2 AUDIVOR'S REPORT TO THE MANAGEMENT (Audi Opinion --.--................. 3 FINANCIAL STATEM ENTL . . . ..................--.--.-.--.. 4 P a r t ........................................................ . --. -- . --. 5 1. INT R O D UCT IO N ................................ . ....... - 9 2. A L D IT O B JEC TIV ES ......................... .. .---.......- 9 3. AUDIT SCOPE ANDMETHODOLOGY ..................M...L...D....... l0 4. AUDIT FINDINGS AND RE COMNDA'TIONS ........ ....... - - 4.1 Organization and M anagemnent....................................... - 4.2 Financial M anagumm ent.. ................... . ....I. . 1- . ... .. . 1.. .. -- 12 4.3 Procurement and Contract ManagemenLna....................1... 13 4.4 M onit ring and Evaluation .........-.......................... ... 14 4.5 Com-pliance w ith grant /loan covenant o.e.................... ..... ................ 15 4 .6 S usbtabin ab ility .............................................. ....................... 16 4 .7 O v erall A se~sm ent. ............................................................... ............................. 6 5 . C O NCCIS ION............................................................................... ........................... 17 A C K N O W I.E D G E M E N T... ... ................................................................................................ 8 LIST of Abbreviations AGP Auditor General of Pakistan CBAS Cash Basis of Accounting Standard COVID-19 COVID-19 Response, Recovery and Resilience in Education Project RRREP ECNEC Executive Committee of the National Economic Council FE&PT Federal Education and Professional Training FY Financial Year FS Financial Statements FSc Federal Steering Committee GPEF Global Partnership for Education Fund IBRD International Bank for Reconstruction & Development IPSAS International Public Sector Accounting Standards ISSAI International Standards of Supreme Audit Institutions NCHD National Commission for Human Development NBP National Bank of Pakistan SBP State Bank of Pakistan Page i PREFACE The Auditor-General of Pakistan conducts audit under the authority provided in Articles 169 and 170(2) of the Constitution of Islamic Republic of Pakistan, 1973 read with Sections 8 and 12 of the Auditor- General's (Functions, Powers and Terms and Conditions of Service) Ordinance, 2001. The audit of the COVID-19 Response, Recovery and Resilience in Education Project (RRREP), Ministry of Federal Education and Professional Training (MOFE&PT) was carried out accordingly. The Directorate General Audit (Federal Government) conducted audit of the RRREP during November, 2021 for the period 2020-21 with a view to report significant findings to stakeholders. The primary focus of the audit was to express an opinion on the Financial Statements of the project. Audit also examined the economy, efficiency and effectiveness aspect of the project. In addition, Audit also assessed, on test check basis, whether the management complied with applicable laws, rules and regulations in managing the project. The Audit Report indicates specific actions that, if taken, will help the management to realize the objectives of the project more effectively. The report consists of two parts. Part-I contains Auditor's Report (Audit Opinion) and Financial Statements, while Part-II contains Executive Summary, Management Letter and Audit Findings. The report has been prepared for submission to the World Bank in terms of GPE Grant No TFOB3319 with the Government of the Islamic Republic of Pakistan. Dated: 14 .12.2021 (TARIQ MAHMOOD KOREJA) Place: Islamabad DIRETOR GENERAL Page I ii Part-I 1. PROJECT OVERVIEW 2. AUDITOR'S REPORT TO THE MANAGEMENT (Audit Opinion) 3. FINANCIAL STATEMENTS Page | 1 PROJECT OVERVIEW Name: COVID- 19 Response, Recovery and Resilience in Education Project (RRREP) Sponsoring Agency: International Bank for Reconstruction and Development (IBRD) Executing Agency: Ministry of Federal Education and Professional Training, Islamabad and respective Federal and Provincial Departments GPE Grant No. TFOB33I9 PC-I cost: FEC USD19.85 million (PKR.3,300.063 million) Total PKR.3,300.063 million Date of Commencement (PC-I): 01.10.2020 Actual Date of Commencement: 20.11.2020 Date of Completion (as per PC-I): 28.02.2022 Date of approval by CDWP: 21.10.2020 Utilization Status in FY 2020-2021: Rs.718.843 million Progressive Expenditure up to last FY 2020-2021: Rs.718.843 million Page | 2 AUDITOR'S REPORT TO THE MANAGEMENT (Audit Opinion) Ms. Naheed S. Durrani Secretary, Ministry of Federal Education and Professional Training, Islamabad. Auditor's Report on the Financial Statements (FSs) of the COVID-19 Response, Recovery, and Resilience in Education Project (COVIDI9 RRREP) We have audited the accompanying Financial Statements (FSs) of COVID-19 Response, Recovery, and Resilience in Education Project (COVIDL9 RRREP), Ministry of Federal Education and Professional Training, Islamabad GPE Grant No TFOB3319 that comprises Statements of Receipts and Payments for the year ended June 30th 2021. Management Responsibility It is the responsibility of the project management to establish and maintain a system of internal controls, and prepare and present the Statement of Receipts and Payments in conformity with the requirements of Cash Basis IPSAS, Financial Reporting under the Cash Basis of Accounting Standard (CBAS). Auditor's Responsibility The responsibility of the Auditor is to express an opinion on the financial statements based on the audit conducted. We conducted audit in accordance with the International Standards of Supreme Audit Institutions (ISSAls). These standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements. The audit process includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. It also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall statement presentation. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Opinion In our opinion: a) The financial statements present fairly, in all material respects, the cash receipts and payments made by the project for the year ended 30h June, 2021 in accordance with Cash Basis IPSAS, Financial Reporting under the Cash Basis of Accounting Standard. b) The expenditure has been incurred in accordance with the requirements of legal agreements. Emphasis of Matter Without qualifying our opinion, we draw your attention to ML 4.3.1, 4.4.1, 4.5.1 and 4.5.2 of the report. The management needs to pay special attention to timely execution of the project COVID-19 Response, Recovery, and Resilience in Education Project (COVIDI9 RRREP) as per PADfPC-I. Annual work plan needs to be jot down to quarterly and monthly plans to get the maximum output from the Project (TARIQ MAHMOOD KOREJA) DIRECTOR GENERAL Am Directorate General Audit (Federal Government) Benevolent Fund Building, Zero Point, Islamabad Dated: .12.2021 Page | 3 FINANCIAL STATEMENTS Page | 4 Response, Recovery and Resilience in Education Projects (RRREP) GPE Grant Number TFOB3319 Statement of Cash Receipts and Payments For the Year Ended June 30, 2021 FY 2020-21 Cumulative Receipts! Receipts (Payments) Payments by Third (Payments) Payments by Controlled by Parties Controlled by Third Parties Proiect Project Pak Rupees RECEIPTS Notes Pak Rupees External Assistance - IDA World Bank 572,121,352 620,968,732 572,121,352 620,968,732 TOTAL RECEIPTS - A 572,121,352 620,968,732 572,121,352 620,968,732 I LESS: PAYMENTS Civil Works - - - - E Goods 8 - 620,968,732 - 620.968,732 Consulting I Non consulting Services 97,852,032 - 97,852,032 - Trainings 10 Incremental Operating Cost 11 22,611 - 22,611 - TOTAL PAYMENTS 97,874,643 620,968,732 97,874,643 620,968,732 474,246,709 - 474,246,709 I Increasel (Decrease) in Cash 474,246,709 - 474,246,709 Cash at Beginning of Year - Balance Surrendered/Lapsed-GOS Cash at End of Year 12 474,246,709 474,246,709 The accompanying notes form an ntegral part of these financial statements Natidal Proje irector Response, Recovery and e ilience in Education Projects (FtR EP) Audit C171cer Directorate General Audit Pederal Government Islamabad I I I I Response, Recovery and Resilience in Education Projects (RRREP) GPE Grant Number TFOB3319 Statement of Comparison of Budget and Actual Amounts For the Year Ended June 30, 2021 Amount in Pak Rupees Amount In Pak Rupees Notes FY 2020-21 Cumulative Budgeted Actual Amount Budgeted Actual Amount Amount (PC-1) Amount (PC-1) RECEIPTS External Assistance - IDA World Bank 5 & 6 2 073,554,366 1 193,090,084 2,073,554,366 1 193,090,084 TOTAL RECEIPTS - A 2,073,554,366 1,193,090,084 2,073,554,366 1,193,090,084 LESS: PAYMENTS Civil Work 7 I Goods 8 1231510787 620,968732 1,231,510,787 620,968,732 Consultancy Services 9 678409,696 97 852 032 678,409,696 97,852,032 Tranings 10 63341 247 - 63,341,247 - Incremental Operating Cost 11 100,292,636 22611 100,292,636 22,611 TOTAL PAYMENTS - B 2,073,554,366 718,843,375 2,073,554,366 718,843,375 Balance Surrendered/Lapsed-GOS - - Increasel (Decrease) in Cash (A-B) 474,246,709 4W.46,709 The accompanying notes form an integral part of these financial statements N Director Response, Recovery, nd Resilience in Education Proj ts (RRREP) viriscer f.*r General Audit Iar ji Government Istamabad I I I a Response, Recovery and Resilience in Education Projects (RRREP) GPE Grant Number TFOB3319 Notes to the Financial Statements For the Year Ended June 30, 2021 1 Reporting Entity : The F:nancia Statements are for Response, Recovery and Resilience in Education Project (RRREP). The fr*ar*cial statements enco-passes the report.ng entity as per Grant Agreements between the Islamic Rep,iblc of Pakistan and the International Bank for Reconstruction and Development (acting as Grant agent for the Global Partnership for Education Fund) The Grant Agreement (GPE Grant Number TFOB3319) of United Stated Do ars 19,850,000was signed on November 25, 2020 and the closing date is November 30, 2021. 2 Certification by Project Management on Application of Funds: It is certified that funds aga'nst Grant Number TFOB3319 have only been utilized for the project purposes p as de'-ned in the PC 1 and Grant agreement. 3 Accounting Convention and Statement of Compliance: The Financial Statements RRREP have been prepared in accordance with International Public Sector Accounting Standards (IPSAS), Financial Reporting under the Cash Basis of Accounting. These financial statements have been prepared using cash basis of accounting where transactions are only recognized when cash is received or paid. 4 Significant Accounting Policies: The significant accounting policies applied n the preparation of these financial statements are set out I below. 4.1 Foreign Currency Transaction: Cash receipts and payments arising from transactions in foreign currencies are recorded in Pakistani Rupees by applying to the foreign currency exchange rate applied by State Bank of Pakistan (SBP) for converting foreign currency into Pak rupees for the tranche at the time of receipt of funds in SBP from World Bank in compliance with procedures defined in Revised Accounting Procedure for Revolving Fund p Ass gnment Account issued by F nance D.vision No. F 2 (1)/BR-II12007-949 dated August 02, 2013. 4.2 Reporting Currency : Amounts in the financial statements are in Pak Rupees I 4.3 Revenue Recognition : Revenue s recogn.zed on the date of receipt of money by bank or issuance of cheque Revenue is recogn:zed on g-oss bass and any related costs are recorded separately 4.4 Recognition of Expenditure: Expend t e s e ized o- the date when payment's made or cheque is issued. Financial year to which the payme ts perta is determ ned by the date on which a cheque or payment advice is issued 4.5 Fixed Assets: Fixed Assets a- ' stated at cost. Dur'ng the FY 2020-21 the project has not purchased any fixed assets I I I I 5 External Assistance - IBRO - World Bank: External assistance is the receipt n the form of grant from IBRD Word Bank under Grant Agreement dated November 25, 2020 between the Government of Pakistan (GOP) and the IBRO - World Bank for the purpose of implementation of RRREP Activities The following amounts were transfered by the end of reporting period into the Designated Revolving Fund Bank Account (A/c # 4171233139) being ma ntain at National Bank of Pakistan Islamabad FY 2020-21 Date of Amount Conversion Rate Amount Credited Receipt (US$) used into NBP (PKR) 1-Mar-21 3614458 158 2869 572 121 352 3,614,458 572,121,352 6 Payments by third party I Under the project RRREP, the Ministry of Federal Education and Professional Training has signed a contract with United National Children's Fund (UNICEF) for the procurement and distribution of bas c sanitization and hygiene kits supplied to public schools for promoting safe school and reopening Th!s contract was signed on June 21, 2021 Payments relating to this activity were made directly to UNICEF through Direct Payment withdrawal application The details of Direct Payments are as follows Direct Payments by Bank) Receipts Withdrawal Contract name Vendor name Application No. USD PKR I Procurement and distribution of basic sanitization and hygiene Und Nations Children's RREP2-1 3735 150 620 968,732 supplied to public schools for safe school reopening 7 Civil Work The Project does not have any civi work related activity to be mplemented under the project During the FY 2020-21 there were not civil work expend ture ncurred under the Project 8 Goods Fo low ng Payments a e c ve ed - nder Goods n add tiona. of fxed asse. ::. :ered under note 4.5 FY 2021 BPayments Bmoudte P Controlled by II ~ ~ ~Amount (PC-I) thPrjc the Project 113 D str bution of earn -g mater as -Tab:ets Internet 300,413,737 Connectiv ty Procurement and d stribution of bas c sanitizat.on and 2 1 2 hygiene supplied to public schools for safe school 931,097,050 620 968,732 reopening 1,231,510,787 620,968,732 I 9 Consulting and Non Consulting Services Following consultancies are covered under the project. During FY 2020-21, payments were only made in activity 1.1.2 to M/S Pakistan Broadcasting corporation relating to Distance Learning through Radio. FY 2020-21 Budgeted Payments Controlled by Amout (P-i) the Project I Developmentof new national & early childhood & grades 1 1.1.1 to 12 level distance learning content for tv radio print & 96 .,:)J061 - social media including mobile Dissemination of nationa' distance learn'ng content for T V 1 1 2 for Rad o Print & Social med a with a special focus on hard 111,999,960 9: 852,032 I to reach areas Tv Rad o Mobile & Socia! Media communications 1 2 1 campaign on Education Continuity & health throughout the - response & recovery phases 1 2 2 Design:ng of National safety & well being Programs 24,200,014 2 Technical Assistance for Designing & Implementing 1 2 3 Gender Analysis needs Assessment for Female well Being 9,999,937 & Health during & post COVID 19 need assessment Design heaith & education awareness content based on needs assessment for protection of females technical 1.2 4 assistance for designing of content by using various 8,399,947 med urn dig tal as well as print 1 2 5 Nationa' Te ephone hot.ne on we' be.ng resources 6,650,000 Parent surveys to assess satisfaction of project 1 2 6 intervent-ons mp:emented technical assistance us ng 4,999,969 vanous survey techniques Learning competency standards & revised assessmen1 1 3 1 framework - Techn al Assistance 16,624,999 C eat n of Pat wa for certification of d stance lea-n ng programs at nat I leve & design mechan sm for ntegrat o f OOSC to the ma nstream educat-on system -Techn ca Ass sta e Integrat f d sta e learn'ng competency standa ds & 1 3 3 revised assessme t framework with the Pak-stan 4,999,969 qualifications framework - Technical Assistance Kick start mplementation of inclusive d stance earning 1 3 4 competency standards for OOSC & Assessment 8,312,500 framework H I I U Development & Sample based implementation of 1.3.5 assessment to evaluate loss of learning during school 1.3.5closures technical assistance using various survey 8,399 947 techniques Supervsion 1 Imp ementation & Execution Mon;tor-ngi of 2 1 1 *mplementation of safe schoo eopen,ng protoco:s in schoo-s (For the entire project duration) includ:ng design 'mplementation of federal ,prov ncia gu.del nes/protocols Promot:on of ava;lab'e (National: Provincial) we:I be-ng 2 1 3 programs stipported under component 1 2 - Techn:cal 8,399 947 Assistance S1 4 Researcr study f..r improvng capacity to identify and design safety protoco:s fo schoo! re-opening 10,806 250 22 1 Design of teacher professional development programs to address learning gaps 4,500055 Development of content for teacher professional development programs to address learning gaps technical 2 2 2 consultancy to consolidate learning gaps findings from 11,637,500 each province ICT,GB,AJK professional development content informed by the findings of learning gaps Revision of teacher professional development materials to 2.2 3 include distance learning approaches and assessmeni 15,000,072 * strategies Implementation of teacher professiona! development 2 2 4 programs to address learning gaps including train ng of 283,878,679 targeted number in priority areas Development of strategies & standard operating procedures for education serv'ce delivery during 31 1 emergenc es & establ!shment of policy anaiysis un-t 8199948 Technical consultancy including in depth surveys & analysis of Federal & Provincial education service delivery frameworks to come up with standard SOP's Assessment & Framework for creation of an emergency 3 1 2 delivery unit with federal & provincial representation - 2 999 981 Technical consultancy Total 678,409,696 97,852032 I I I I I I 10 Trainings Following trainings are covered under the project FY 2020-21 Budgeted Payments Amount (PC-1) thetroect the Project Strength Technical & Implementation Capacity of 4.1.4 Provincial Education Department-Punjab: Designing 63,341,247 strategies & Plans to deal with emergencies: Grand Total 63,341,247- There is no payment has been made during FY 2020-21 under this Sub components. 11 Incremental Operating Cost Incremental Operating Costs will cover incremental staff salaries (non-governmentemployees), office rent office supplies, utilities, conveyance, travel and boarding/lodging allowances, operating and maintenance expenditures of office equipment and vehicles, bank charges, insurance, advertising, media projections. newspaper subscriptions, periodicals, printing and stationery costs incurred for the purposes of project activities, which expenditures would not have been incurred in the absence of the project. Incremental Operating Costs exclude salaries, fees, honoraria, bonuses, and any other salary supplements of members of the Recipient's or the Project Implementing Entity's civil service. FY 2020-21 Budgeted Payments Budgeted Controlled by Amount (PC-1) thetroect the Project 4.1.1 Gender Consultant 1200159 4.1.2 Project coordination unit operating costs 16,499 979 22,611 4.1.3 Other national implementation cost 8249990 4 15 Operating costs for HR/Implementatior 17,954,999 Arrangements(Provinc al Data Co ection, Ana ysis & Reporting-KP EMA APP 4 1 6 upgradat;on USD 250 000. Diagnost c Assessment of 44,887,498 primary & E-ementary classes 421 Cross-provincial coordination & Communication Monthly Expenses for meetings communications couriers etc 2,999,981 Ana'ytica & M& E work to support project implementation- 422 month'y expenses for trave to implementation areas to 2,999,981 oversee & monitor progress Eva-uat-ons of local Interventions & Management Practices 423 Externa eva uations of identified interventions at the 2,999,981 I prov nc;a evel 424 Data Co: ect on, Reporting ,Fiduciary& safeguards monthly 2,500,067 I4cost data co ection conso idation & Reporting total 100,292,636 22611 I I 12 CashandBank: As at 30th June 2021 Cash in Hand Cash at Bank 474,246 709 Designated Account # # 4171233139 Total available Cash 474,246,709 13 Authorization for Issue : These financial statements have been authorized for issue by the National Project Director on June 30, 202 1 14 General: Figures have been rounded off to the nearest rupee Nationa rojec:D cto r Response, Recovery and Reslllerjc in Education Projects (RRREPf I-euerdo 6 i AD Iirecer Direcrora enerail Audit Federal Government Islamabad I I I I I I I I I I Response,Recovery & Resilience in Education Project (RRREP) Ministry of Federal Education & Professional Training IBRD Grant No TF.B3319-PK Bank Reconciliation Statement of Account For the FY 2020-21 Alc No 4171233139,World Bank Designated AIC, NOP Main Branch, Ialamabad PKR US0 Opening balance as per Cash Book as on July 01, 2020 Add: Receipts during the period 572,121,352 3,614,458 572,121,352 3,614,458 Less: Payments/Cheques issued during the period as per Cash Book 97,874,643 618,337 Closing balance as per Cash Book as on June 30, 2021 474,246,709 2,996,121 Opening balance as per Bank Statement as on July 01, 2020 Add: Receipts during the penod as per bank statement 572.121,352 3,614.458 572,121,352 3,614,458 Less: PaymentsfCheques cleared during the period as per bank statemel 97,874,643 618,337 Closing balance as per Bank Statement as on June 30, 2021 474,246,709 2,996,121 Less: Unpresented cheques Up to June 30, 2021 Sr.No. Cheque No. Date Amount In PKRk Amount Eqv.USD Total - - Closing balance as per Cash Book as on June 30, 2021 474,246,709 2,996,121 I USD = 158.2869 PKR ona ct tar Response, Recovery an esilience in Education Projec RREP) ' ' � б V У tl � а °� . � ��rуΡ� ti ~ г � � � и � ц С з � g8�� � н ��� � м� �ra�q �й�q У � 'г q � V V � ,- .� LLa � 'а ш ������������� ������������� � � ° ннв ввкв нвн� � ��м а°����л�Н�м . а �������9�н��� S г�`�n�ic��i�rv��лл �1 �иии v�ervr r♦v +� Fk Ф � � . х �� 88н8 8�8 � � м`�'� r`�amn +�д�� '�`v -• � м ,,, �р g� Ф Oi ,. а ха ���'�� ifno � � д� j `� �Nr У г 64и 4 � ld5 шfl � � � � � w �и о � � w � м � � � �� ; � и� .- .. �������s�n��� rммрq gн о� оо Р �� У Г � w N��� °