GHANA EDUCATION SERVICE P.O. BOX M45 ACCRA REPUBLIC OF GHANA GIRLS PARTICIPATORY APPROACHES FDR STUDENT SUCCESS (G-PASS) GHANA EDUCATION SERVICE (GES) [DFID GRANT No. 202493-105] PROJECT FINANCIAL STATEMENTS 31 DECEMBER 2ms ~1~ ~~ UKaid from the British people I TABLE OF CONTENTS PAGE REFERENCE GENERAL INFORMATION 1 INDEPENDENT AUDITOR'S REPORT ONG-PASS FINANCIAL STATEMENTS 2-3 STATEMENT OF FINANCIAL POSITION 4 STATEMENT OF SOURCES AND USES OF FUNDS 5 NOTES TO THE FINANCIAL STATEMENTS 6-8 I GENERAL INFORMATION PROJECT BACKGROUND The Girls Participatory Approaches to Students Success (G- PASS) in Ghana is a programme funded by the UK Department for International Development (DFID). The project supports a decentralized mechanism for scholarship programme which targets 55,000 needy girls in 75 deprived districts in basic education . There are three components: the first provides a package of in-kind support such uniforms, sandals, reading books, stationery and registration of exam fees for needy girls which are delivered and managed by the government's Girls' Education Officers. The second component provides support Ghana Education Service (GES) staff at national, regional and district levels to build their capacity to effectively implement and monitor the program . Objectives: The programme aims to increase the enrolment, retention , completion and performance of girls at Junior High School level in the 75 deprived districts of Ghana and provide institutional capacity building support for effective monitoring . Source of funding: The UK Department for International Development (DFID) will provide an amount equal to GBP£7 million as a four-year grant facility to the Government of Ghana. The funding arrangement employs an investment technical grant assistance and management to support the overall programme implementation. DFID Grant Amount: GBP £7 million Component 1: GBP £6. 5 million Component 2: GBP £0.5 million Approval date: 2013 Start date: 2014 Completion date: 2017 Implementing Agency: Ghana Education Service (GES) PROGRAMME IMPLEMENTATION COMMITTEE Mr. Enoch Cobbinah , Chief Director - Chairman Mr. Jacob Kor, Director-General GES - Member Dr. Stephen Adu , Director of Basic Education - Member Mrs . Catherine Mikado, G-PASS Coordinator - Member Dr. Chris Koramoah , Financial Controller GES - Member Mrs . Beatrice Zalia Ali , Director of Supply & Logistics - Member ADDRESS Ghana Education Service P.O. Box M45 , Accra AUDITORS Ghana Audit Service Post Office Box MB 96 Accra , Ghana BANKERS Home Finance Company 1 I AUDIT SERVICE In case of reply the number and date of the letter should be quoted ~ My Ref. No:...'. 'Y~!.!/.!::. - ~.~!.~~17!~LJ Good Governance Your Ref. No~ ................................ . and Accountability P. 0. Box.............. M ,..96, ................................ .. Tel: 233 (0) 302 664920/28/29 .................................... ACCRA ........................... . Fax: 233 (0) 302 6751495 Website: www.ghaudit.org ...................... 28 .....June, ................ 20.11 ...... .. INDEPENDENT AUDITOR'S REPORT TO THE CHIEF DIRECTOR, MINISTRY OF EDUCATION (MoE) REPORT ON THE PROGRAMME FINANCIAL STATEMENTS We have audited the financial statements of the Girls Participatory Approaches to Students Success (G-PASS) funded by UK Department for International Development (DFID) Grant referenced 202493-105 which , comprises the statement of financial position as at 31 December, 2016 , and the statement of sources and uses of funds for the year ended 31 December, 2016 which , have been prepared under the historical cost convention and on the basis of the accounting policies set out in Note 1. Management's responsibility for the financial statements The financial statements are the responsibility of the Management of G-PASS of the Ghana Education Service , acting as an implementing agency, under the Ministry of Education (MoE) . The Management of G-PASS is responsible for the preparation and fair presentation of these financial statements in accordance with generally accepted and accounting practice and DFI D Grant referenced 202493-105 as well as for such internal control as management determined is necessary to enable the preparation of the financial statements free from material misstatement whether due to fraud or error. This responsibility includes designing , maintaining adequate financial management arrangements and ensuring that these continue to be effective throughout the reporting period ; maintaining proper accounting records , wh ich disclose with reasonable accuracy at any time of the financial position of the Programme ; design ing , implementing and maintaining internal controls relevant to the preparation and fair presentation of the Financial Statements and ensuring that they are free from material misstatements, whether due to fraud or error; safeguarding the assets of the programme; selecting and applying appropriate accounting policies ; and making accounting estimates that are reasonable in the circumstances. Auditor's responsibility Our responsibility is to express an independent opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards of Supreme Auditing Institutions (ISSAls) and the guidelines in the Grant Financing 2 Agreement. Those standards require that we comply with the ethical requirements and plan and perform the audit to obtain reasonable assurance on whether the Financial Statements are free from material misstatement whether caused by fraud , other irregularity or error. An audit includes performing procedures to obtain audit evidence about the amounts and disclosures in the Financial Statements. The procedures selected depend on the auditor's judgment, including the assessment of the risk of material misstatement of the Financial Statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal controls relevant to the entity's preparation and fair presentation of the project financial statements 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 entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by Management, as well as evaluating the overall presentation of the financial statements . We believe that we have obtained sufficient appropriate audit evidence to provide a basis for our audit opinion . Opinion In our opinion , the Financial Statements present fairly , in all material respects , the financial position of G-PASS as at 31 December, 2016 , and the results of its operations for the period then ended in accordance with the provisions of the DFID Grant Financing Agreement (Grant referenced 202493-105) and the accounting policies set out in Note 1 of the project financial statements . Report on compliance In addition , Management has complied , in all material respects , with the covenants of the DFID Grant Financing Agreement (Grant referenced 202493-105) and the applicable Government laws and regulations , and that the funds received during the period under audit were used for the eligible purposes for which they were intended and were properly accounted for as at the year ended 31 December, 2016 . Restriction of use This report is intended solely for the use of the Management of the project, DFID and the Government of Ghana, and should not be used for any other purpose . YWINFUL DEPUTY AUD ENERAL/PSAD FOR: AUDITOR-GENERAL 3 I GHANA EDUCATION SERVICE GIRLS PARTICIPATORY APPROACHES TO STUDENTS SUCCESS DFID GRANT NUMBER: 202493-105 STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER, 2016 31 December 31 December 2016 2015 NOTE GH¢ GH¢ NON-CURRENT ASSETS Property, Plant and Equipment 2 11 ,700.00 11 ,700.00 Non capital expenditure 3 26 ,950,839.46 24,249,315.38 CURRENT ASSETS Bank and cash balances 4 777,664.98 3,414,732.02 Total Assets 27,740,204.44 27,675,747.40 FINANCED BY DFID Designated Grant A/C 5 27,434,110.23 27,434,110.23 Other Income 6 306,094.21 241,637.17 27,740,204.44 27,675,747.40 Sign~ Financial ntroller, GES Dr. Chris Koramoah Date: The attached notes 1 to 10 form an integral part of these financial statements. 4 I GHANA EDUCATION SERVICE GIRLS PARTICIPATORY APPROACHES TO STUDENTS SUCCESS DFID GRANT NUMBER: 202493-105 STATEMENT OF SOURCES AND USES OF FUNDS FOR THE PERIOD ENDED 31 DECEMBER, 2016 Cummulative Total 2016 2015 2016 NOTE GH¢ GH¢ GH¢ Balance as at 1 January 3,414,732.02 14,772,856.08 0.00 Receipts: Replenishment to DFID Grant 0.00 10,199,489 .59 27,434 ,110.23 Designated A/C Other Receipts (Interest earned) 64,457 .04 209,290.24 306 ,094.21 Total Project Receipts 3,479,189.06 25,181,635.91 27,740,204.44 Uses of Funds Scholarsh ip & Awards 7 2,196,241 .33 20 ,969 ,784.58 24 ,852,428.52 Monitoring 8 143,154.00 385 ,748.00 643,801 .01 Training 9 950.00 73,435.05 556,369.31 Property, Plant & Equipment 0.00 11 ,700.00 11 ,700.00 Operating Cost 10 361 ,178.75 326,236 .26 898 ,240.62 Total Project Expenditure 2,701,524.08 21,766,903.89 26,962,539.46 Balance as at 31 December 777,664.98 3,414,732.02 777,664.98 Bank and cash reconciliation analysis as at 31 December DFID G-PASS Special Cedi A/C 777 664 .98 3,414,732.02 777 ,664.98 Bank and cash balances as at 31 December 777,664.98 3,414,732.02 777,664.98 The attached notes 1 to 10 form an integral part of these financial statements. 5 I GHANA EDUCATION SERVICE GIRLS PARTICIPATORY APPROACHES TO STUDENTS SUCCESS DFID GRANT NUMBER: 202493-105 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2016 1. Significant Accounting Policies The following are summary of the significant accounting policies adopted in the preparation of the financial statements: Basis of accounting The financial statements have been prepared on IPSAS cash basis and under the historical cost convention. This means that revenue and expenditures are recognized in the financial statements only when they are receive and paid for respectively . Under the historical cost convention, assets and liabilities are reflected or disclosed in the financial reports at the cost incurred or price paid at the time of transaction . Property, plant and equipment All Property, Plant and Equipment acquired or constructed under all sources of funding have been stated at the actual payments made during the year and shall not be depreciated. Depreciation No depreciation has been charged in the financial statements. Revenue and expenditure Revenues are recognised when funds are received from DFID and expenditures are accounted for in the year when goods, works and services are incurred and paid . Donor/Financier Funds received are accounted for on cash basis. Foreign Currency Exchange Foreign currency translation for funds received from DFID are converted using the actual spot exchange rate at the conversion from special to local account. The reporting currency is in Ghana Cedis. Non capital expenditure All non-capital items such as Goods & Services, Consultancies, Training, and other Project Operating Costs are shown in the financial statements under Non-Capital Expenditure. 6 2. Property, Plant & Equipment Opening Additions during Closing balance the year balance 1 January, 2016 31 December, 2016 GH¢ GH¢ GH¢ Furniture & Fittings 11 .700.00 0.00 11 .700.00 11,700.00 0.00 11,700.00 3. Non capital expenditure Opening Additions during Closing balance the year balance 1 January, 2016 31 December, 2016 GH¢ GH¢ GH¢ Scholarship & Awards 22 ,656,187.19 2,196,241 .33 24,852 ,428.52 Monitoring 500,647 .01 143,154.00 643,801 .01 Training 555,419.31 950.00 556,369.31 Operating Cost 537.061.87 361.178.75 898.240.62 24,249,315.38 2,701,524.08 26,950,839.46 4. Bank and cash balances This represents available cash and cash equivalents for the continuation of the project and settle any project related liabilities. 5. DFID Funds 2016 2015 GH¢ GH¢ Balance b/f 27 ,434 ,110.23 17,234,620.64 Releases 0.00 10.199.489.59 Balance c/f 27,434,110.23 27,434,110.23 6. Other income This represents cash refunds and interest earned on bank balance as at the end of the year. 7 I 7. Scholarships and Awards The scholarsh ip and awards granted to girls in 75 implementing districts from poor communities and consists of in-kind support such as uniforms, sandals, reading books, stationery and exam fees . 2016 2015 GH¢ GH¢ Photograph fees 0.00 89 ,313.00 Teaching & Learning Materials 355,951 .68 5,189,263.09 Supplementary Readers 0.00 0.00 School Uniform Materials 216,888.64 4,130,221 .80 School Bags and Sandals 317 ,782.06 5,257,679.75 Sanitary Pads 232 ,200 .00 3,640,906.22 Sewing of school uniforms 72 ,691 .80 1,415,522.72 BECE Registration Fees 657 ,313.71 620,904.40 Bicycle 52,971 .75 275,595.05 Orientation of District Girls Officers 32 ,970.00 0.00 Solar Lamps 13,272.50 74,783.50 Distribution and Procurement Cost 244,199.19 275,595.05 2,196,241.33 20,969,784.58 8. Monitoring 2016 2015 GH¢ GH¢ Transfer to Regions 9,010.00 24,270.00 Transfer to Districts 88,020.00 269,370.00 National 46,124.00 92,108.00 143,154.00 385,748.00 9. Training 2016 2015 GH¢ GH¢ School Based Facilitators 950.00 73,435.05 950.00 73,435.05 10. Operating Cost 2016 2015 GH¢ GH¢ Repairs of Vehicle 30,295.00 9,247.34 Contract Printing 56,400.00 121 ,469.04 Bank Charges 225.73 708 .01 Communication 3,038.00 239.00 Repairs of Office Equipment 350.00 450.00 Review Meeting 270,870.02 194,122.87 361,178.75 326,236.26 8 I