Office of the Provincial Audit Wing Constitution Avenue Islamabad No.PA/FAP/Balochistan/F-12/Vol-Il// ,kts . Dated: 17-03-2015 1. Secretary Economic Affairs Division Pak Secretariat Block "C" Islamabad C' A \,2--Country Director, World Bank, 20-A, MAR l . Shahrah-e-Jamhuriat, Thl Sector G-5/1, Islamabad 6' W Subject: Foreign Aided Project (FAP) Audit Reports Kindly find enclosed a copy of following FAP Audit Reports for further necessary action: i. Balochistan Education Support Project IDA Credit No. 4203-Pak for the F.Y. 2013-14 ii- Governance Support Project Implementation Support Unit Balochistan under Grant No. TF 10510 for the F.Y- 2013-14 iii. Promoting Girls Education in Balochistan under Grant No. TF 012826 for the F.Y. 2013--14 iv. Balochistan Disaster management Project Grant No. TF-1 2516 Pk for the FY. 2013-14 Enclosure: (04 Reports) SA ULLA KHAN (Assistant Director) Provincial Audit Wing Cc- i. DG Audit Balochistan, Quetta ii. Master File 1 TABLE OF CONTENTS IPage No List of Abbreviations Preface I PART-! Project Overview 3-4 Auditor's Report to the Management (Audit Opinion) i II Financial Statements 6-30 PART-II I COVER LEFER TO TH MANAGEMFNT IFTiiz 31 EXECUTIVE SUMMARY 32 I MANAGEMENT LETTIR 33 1. Introduction 34-35 2. Audit Objectives 36 3. Audit Scope and Methodology 36 4. AUDIT FINDINGS AND RECOMMENDATIONS 36-42 4.1 Organization and Management 4.2 Procurement and Contract Management 4.3 Construction and Works 4.4 Monitoring and Evaluation 4.5 Compliance with Grant/Loan Covenant 4.6 Environment 4.7 Sustainability 4.8 Overall Assessment 5. CONCLUSION 43 5 ACKNOWLEDGEMENT 44 I . IWcam 1 1 MAR 2015 T1, Wortu Bank g I % -I4pa a 1 Abbreviations and Acronyms I FBlochistan IdUcation FOUndation 13ESP Balochistain Education Support Project CIPS Community Implementation Partners DSC )esign and Supervision Consultant IECN E C I'eCUtiVC Committee [or National EconoEic Council GoB Government ofIalochistan IDA International Development Association I DCE Independent Consu [ti nO E,ngineers I Ips Implementing Partners IPSAS International Public Sector Accounting Standards M&E Monitoring & Evaluation MIS Management lnlbrmation System NGOs Non Government Organizations NOC No Objection CertificatiOl P&D Planning and Development PC-I Planning Commission Form-I PD Project Iirector PECS Parents Education Committees PI1I1s Private Inmplemnentation Partners PK Pakistan 1,1C Technical and Facilitation Consultant TOR Ierms of Rcltrence WB World Bank Iae ComuitImpemnttonPatnr DeinadSpriInCnutn Ixctv omte o ainlEooi oni I I I PREFACE The Auditor General conducts audit subject to Articles 169 and 170 of the Constitution of the 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 ol' Balochistan Education Support Project (IDA Credit No. 4203-Pak) was carried out accordingly. IThe Directorate General Audit, Balochistan, Quetta conducted an audit of the l3alochistan Education Support Project (IDA Credit No. 4203-Pak) during November 201 4 fIr tle period of 01.07.2013 to 30.06.2014 with a view to reporting significant findings to stakeholders. Audit examined the economy and effectiveness aspects of the Balochistan Education Support Project. In addition, Audit also assessed, on test check basis whether the management complied with applicable Laws, Rules, and Regulations in managing the Prujiect. The Audt Report indicates specific actions that, if taken, will help the management realize the objectives of the Project. The Report consists of two parts. Part-I contains Auditor's Report and Financial Statenents- Part-II contains Executive Summary, Management Letter and Audit Findings. The report has been prepared for submission to the International Development Association (1DA) in terms of development Credit Agreement 4303-PAK. I Nai atulia Shaikh Diret(r General Audit Dated: /e, /2.2014 Place: QUetL I I II II I 82 I I I II I PART-I I 1. PROJECT OVERVIEW 3-4 II 2. AUDITOR'S REPORT TO THlE MANAGEMENT 5 3. FiNiAN(ClAL STFATEMENTS1 6-30 I I I I I II I I I I I I I LI 1 I PROJECT OVERVIEW Name of Project: Balochistan Education Support Project. Balochistan Sponsoring Authority: International Development Association / World Bank I Executing Authority: 1-ducation Department. Government of' Balochistan Loan No.: IDA-4203-Pak I Revised PC-1 Cost: Rs.3,469.98 million Date of Signing of Loan Agreement: 10.7.2006 Date of Approval by PDWP: 28112011 Date of Closing of Loan Agreement: 3 1 .7.2014 Loan Utilization Status in 2013-14: I ls. in million) Project PC1 Revised 2006-07 2007-08 2008-09 2009-10 PCI Component Total Total World Bank Sharing Investment cost 77.93 114.62 195.535 308.87 796.955 2.652.13 Recurrent costs 69.56 134. 13 164.505 128.72 496.915 525.72 Contingencies 2.95 4.975 9.201 8.752 25.878 5110 * 2% Total (A) 150.44 253.725 469.241 446.342 1.319.75 3,228.95 I Government or Balochistan Sharing (Recurrent cost) SaIary 2 9. 04 71.874 1 100.914 177-34 Non-salary - - 9.874 24.437 34.311 62.69 Total(_ - 38.914 96.311 135.225 240.03 SGrand Total 150.44 253.725 508.155 542.653 1,454.980 3,469.98 (A+13) I I if Itge 3 E 1 Progressive expenditure up to 30th June 2014 is as under: (Rs. in million) PC1iKAllocation Total WorCd Totl Allocation TFunds Funds Actual Actual Ye r BGoB al ocatio released released Exp. Exp. Eetur Year Bank Sae Allocatioin as per (D) Go) IA) GO)Expenditure I Share Share (IDA) (GoB) (IDA) (GOB) Share(R .) Revised(R ) Shr R. Rs) Rvsd(Rs.) (Rs.) (Rs.) (Rs.) (Rs.) (Rs.) PC 1 (Rs9.) 2006-07 150.44 - 150.44 115.19 - 63.62 - 63.62 2007-08 253.74 - 253.74 142.16 - 169.36 - 169.36 E 2008-09 469.25 38.91 508.16 210.34 6.36 198.93 2.27 201.12 2009-10 446.33 96.31 542.64 282.43 31.29 193.43 31.00 224.43 2010-11 - - - 97.63 48.52 113.71 47,88 161.59 E 2011-12 - - - 304.04 71.88 234.40 48.26 282.65 2012-3 - - - 162.55 76.88 315.13 45.54 360.67 2013-14 - - - 505.40 76.88 529.24 52.01 581.24 Total 1,319.76 135.22 1,454.98 3,469.98 1,819.74 311.81 1,817.82 226.96 2,044.78 I I I I U I I I U I Pae t Auditor's Report t The Project Director, Balochistan Education Support Program, t Government of Balochistan, Quetta. Auditor's Report on the Balociistan Education Support Project Financial StalemenIs We have audited the accompanying financial statements of Balochistan Education Support Project, Quetta (IDA Credit No. 4203-P1ak) that comprises of Statement of Receipts and Payments. Statement of Comparison of Budget and Actual together with the notes forming part thereof lor the year ended June 30, 2014. Management Responsibility It is the responsibility of project management to establish and maintain a system of internal control, and prepare and present the Statement of Receipts and Payments in conformity with the requirements of Cash Basis IPSAS, Financial Reporting tinder the Cash Basis of Accounting Standard. Auditor's Responsibility The responsibility of the auditor is to express an opinion on the financial statements based oin the audit conducted. We conducted our audit in accordance with the International Standards of Supreme Audit Institutions. '[hose standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material missxatements. 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 made audit provides a reasonable basis For our opinion. Opinion In our opinion: a) The financial statements present Iairly. in all material respects, the cash receipts and payments by the project for the year ended 30 June, 2014, in accordance with Cash Bsis IPSAS, Financ ial Reporting under the Cash Basis of Accounting Standard. b) The expenditure has been incurred in accordance with the requirements of legal agreements. Naii ttull Shaikh Dated: December 1,9 201- ffirecc General Atidi S St1iL S • • 1 FINANCIALSTATEMENTS I 1 FoRTHoY：八RoNo:I)JuNo3o,:014 I I I I I I I I I l l I I l 屆 I Halochistan Education Suppor( Project IDA Loan No.4203-PAK Consolidated Receipt and Payment Statemcat for (he Year ended June 30. 2014 (Rs. in Million) 2013-14 2012-13 Reciepts / Payment by Reviepts Payment by NOTE (Payments) external third (Payments) ex(e'rnal third Controlled by Controlled by Enlity parties Endtv Parties RECEIPTS Direct pztyrnent by IDA Loan from IDA 505.402 161552 Government ot'Balochislan Grants 76.893 76.983 TOTAL RECEIPTS 582.285 239.436 PAVMEN-rs C'apital cost fior 131-T - - Project Fquipl-Flent- Computer 1.756 0.802 t!quipment and Fumilure & Fixture 6 Recurrent cost BEF stafl-salarics 7 37.387 39.6-19 BUT Olvrational cost 11.443 W-381 Clor,,; (jejjVCn, Cost 6..293 51.9sit Frainings 9 0.560 5-810 Se I tj p & Cap i I it I co s t fo r se hot 0 s 10 412.799 199.228 School Recurivat Cost 52.011) 19MO TOTAL PAYMENTS 581.248 3(,O.f)73 Increase/(decreasc) in cash 1.038 (121.237) Cash at the beginning of year 85.743 200.980 -Increas6(deecrease) in cash 1.038 W 1,2371 Cash at the end of year 86.781 8 5 7-13 The acrom panyi nX ntes form a n integral pa r( of th ese fina n cia I staternen is a nd a re to be read therewith PROJECT DIRECTOR Balochistan Education Support Project (IDA Credit 4203-PAk) BALOCI1STA N EDU.CATION SU1PPOR I PROJEC1- RFSI Aoiet,r- ¾ SMNIMARV Y OFM)RCES AND [ISE OF FUNDS FOR TilE YEAR ENDED JI'NE 31, 2014 2111 24113 --Hup s- - --Rup e - Actual fDr [ite Yar (' nml;ie laý t Actual fisr [lhe umulativ, ei * EEirnrildair.tZ Ir atZ Niumiary of Nource and upplialion offunda (Balnrhi6tani EIucation Suppori Prøjet) Opening balaie a1nlk Funds 85,742.613 2 n6 ' AddmetI!. (_id43 Fuids 76,83,41HI 311.820,495 76,83110u 23.1 937,{115 Bank fund,h 5(15.4112,1)68 1,823.855,338 l 5 -,.45 l 1, 3|lR, -l1271 Fund9 Avafiabl 668,0)28.111 2.135,675.833 146,15682 l3533R35 .el 's o f lý untdls II Cvil works Llher lhan ihose f unanecd ulder Clegory 5 -. 2 iumiiurc & li viue otr hn huse lnanied under categry 5. 1.756.066 13..7,803 H<1260 I I 737 i ConsuLtans' servees and irainlil ther 1limn 2 hose ' ianed umder cat 6552,73 414?9129 6 in,5-17 I -8417 1 141 4 lnc remen ltakl ople ralingý costsolhe r t ha n thme], f-1inanlced u nder catLeg.orv 5 48,829.7111 297,24838 0 qu '4,1 l7, 3"7 5(a) GrzinlS: (ali under PanIl Š0rt h lhe PrnniLet llir goiids%, c ivi Il rks, cnulta nts' serv ice ý tra imnig anýd inlcrem en iLi ope ra: iTig aosi ind 46,tI3 13,811)668 794,15 stgi under Par 2 of ihe I> i iSi OF I'TNDS{AmumnÉ in PKRi) . n in P:ak Ruipres F'-201 3-14 Total I'"'""ll.tv 2012-2013 July - Sep 21113 OCIDe Jan-Ml r 21114 A ir..uiine 21114 21113-21114 .I 3. 19ý1 3 .1me c30. 2014 Ftid RewtSpts from 1DA'Wold iauk1 •-l 0 1 55,97 -..71UUK C'apaicikv 7idinpi &- N18,.915 l1Capacil »uilding (olhers) 7,964,0014 56.2- >,211.3 S .510 IP. (%' i ( V> 7.964,110jm 561.214 2,7911,8IK 5,840,355 BEF: I11:1:l >1i1C LÅemdmg 32,10199,392 - Ni, RIgl C itmu 13et 1midmng (Trinmgs. Researcli. Sludy¯ours, el-, imptnninF r16,0 I, 7ur,4166 r.995 1,06! fl I nemta.li Operaing Cst 68,715,669 48,829.7(11 62,97-135 50,< 197 1ilal 1 K%. 102,175,16,1 50.585.767 84.765,353 St.,831,757 ICta 4 B+1+ +1) 822,198,128 581.247.588 737,354,566 36(1673,039 PROJECT DIRECTOF Baloehistan [ducation Suppert Projec, (IDA Credit 4203-PAK) -i Balochistari Education Support Projecl IDA CREDIT NO.4203 Notites lo the financial statements For the vear ended June 30. 2014 11 Reporting Entity Thei finankcial statementis are i or Ha loch istan J ldueation Support Prio ject(B1 wsP1). I[h li1 nanc Ial statemfenis enkcomnpasseN [ihe reporting entity as delined in die iliancing agreemient helween the Islamie Repuhlic of Pakistan and the World Bank. i he Sinancing agreement wassigned on 10/07/2006 feri ati ount I'o et -1 SA69.980 Mil linn quialent to US$ 22 .00 Million. The project becaine ef'ecti\e iron 10/07/2006 with elosing date (y' 31/07/201li. ihe objective )l the 1.,SP11 was or establishing 650 Communiv SchonIos & 3(11) Private Schools in the p vince through public & private partnership.The key objective of the project is the prol-offion [ puhlic-privatc und comuinnity partiierships in order 1. 1 8 I.ess: Bulance availahle at GP1) 0-277 Iess: BLaunee available al M'13 ->25 .ess: BuBlance avuilable at i 11l. 1.002 Less: Peti, Cash Balance 0030 Closing Balanre as per DA Account Stalement 12.405 PROJECT DIRECTOR Balachistan Educatinn Suppat Projec (IDA Credit 4203-PAK) Balochistan Education Support Project Annex-D List of Inventories Purchased For the lear ended June 30, 2014 S.NO Item Location Categorv Inventory No. Cost Date of _______________________Purchase Mr Asad Yar (Accuntis Ofiker) IEjUiEpmuents lisl17 2300 I Gl-C Wall Bracket l-an P/)l.I. .T/12 93.9BR0 11l RA M/11T13 Mr Naideemi-ud(-dji. 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Stindardl Trolley q,u6pmen1ts OLSP/P11/001 31/06/211 l4 oA) l 1.756,0661 PROJECT DIRECTOR Baloclis tan Edcatiår SuPport Projec, (IDA Credit 4203-PAK) 1 1 Annexure-E Name øf the Projeci: Balochistan Education Support Projecl Project Financial Statement SOE Withdrawal Selicdule As o r June 30. 2014 Loan Credit No 4203 Withdrawal Application Details CATEGORIES AS PER LOAN AGREEMENT tiFi W/A* - Currency W/A Amount otal Number E 26 US$ 2.02,588 2,102,588 Pak Rs. 2 11,745,321 211.745.321 2 US$ 1.868.532 1.868.532 Pak Rs. 183,036.748 183,036,748 8 US$ 1,122,329 1,122.329 II Pa R. 110,619.999 110,619,999 TOAI USS 5.093,449 5,093.449 Pak Rs. 505.402,068 505.402.068 G/Total in uSs 5,093.449 G/Total in PRS 505,402,068 G/fotal in SDR PROJECT DIRECTOr BMOchis [an Edtucatlien Supporyt Proje, (IDA Credit 4203-PAK) Balochistan Education Support Project IDA Credit 4203-PAK Designated Account Summary Statemen Showing Receipts & PaymenIs For the vear Ended 30th lune, 2014 Receipt Expenditure Receipt Expenditure Month (US-5) US-$ (PKR) (PKR) July-13 2,102.587.91 I60.579.90 211 745.320,.5 16.240,1162.99 Augus-13 242,027.56 19.350.893.00 September- 13 677,098.05 68.I 88.513.00 OC to her- 13 26 .009.66 26.285.500.00 November-13 6,1.500.67 6.495.669.00 Decemher- 13 271.11 27.302.0 Iinuary- 4 91.3 11.5 9.500.850.00 1ebruarv-14 486.281.53 54,22.944,00 March-14 500.56,.86 50,A10.385.00 April-14 1.868.532.25 620,831.38 183.036.747.9 60.815.090.01 May- 14 482.979A47 4 7, 31lA 6 2.00 Iun- 12 2.3 28998 746,267.73 11l0.619.999,0 2 73. 135.023.99 Toa1 5,093,449.t4 4,336,753.42 505,402,067.55 431,963,694.99 U.SS PKR a) Oeigalneaon1-7-2<013 |M i h) Receipl during FY 2013-14 5.093 -9 505.402,068 C) Total (a + b) 0.000.336 544.368.115 d) Expenditure made during 11 2013-2014 ½ ¯ l . c Closing balance