GHANA EDUCATION SERVICE In case ofreply the number and date ofthis letter should be quoted. HEADQUARTERS P.O.BOX M. 45 REPUBUCCOFGHANAACCRA 26TH JUNE, 2015 THE COUNTRY DIRECTOR WORLD BANK GHANA OFFICE "M ATTN: BOB/CHARLOTTE Dear Sir, GHANA PARTNERSHIP FOR EDUCATION GRANT (GPEG) SUBMISSION OF AUDIT REPORT FOR 2014 1 forward herewith the audit report for the above mentioned programme for the year 2014. STEPHEN ADU AG. DEPUTY DIRECTOR GENERAL FOR AG. DIRECTOR GENERAL GHANA PARTNERSHIP FOR EDUCA TION GRANT - (GPEG) (P129381 - TF013140) AUDITED FINANCIAL STA TEMENT FOR THE YEAR ENDED 31ST DECEMBER, 2014 AUDIT SERVICE In case of reply the number and date of the letter should be quoted Mour Ref N o:...............G G over anc P. 0 . Box .................. .............. Tel: 233 (0) 302 664920/28/29 Fax: 233 (0) 302 6751495 e- 2 WNebsite: www.ghaudit.org Ghana Partnership for Education Grant (GPEG) (P129381- TF013140) Auditor's Report on the Financial Statements We have audited the accompanying financial statements on pages 2 to 7 of the GPEG Project, financed under IDA Grant Number TF013140 for the year ended 31st December, 2014. The statements comprise the statement of financial position as at 31st December, 2014, the statement of sources and uses of funds, statement of expenditures (SOEs) and statement of cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information. Management's responsibility for the financial statements Ministry of Education, which is the implementing agency for GPEG is responsible for the preparation and fair presentation of these financial statements in: accordance with International Financial Reporting Standards, 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 responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards of Supreme Auditing Institutions (ISSAI). Those standards require that we comply with ethical requirements, and plan and perform the audit to obtain reasonable assurance that the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the 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 the audit evidence that we have obtained is sufficient and appropriate 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 GPEG as at 31st December 2014 and in accordance with International Financial Reporting Standards and the Project Agreement Guidelines. G GE S.L ASSISTAN AUDITOR-GENERAL FOR* AUDITOR-GENERAL Ghana Partnership for Education Grant (GPEG) (P129381-TF013140) TABLE OF CONTENT Statement of Financial Performance 2 Statement of Accumulated Fund 2 Statement of Financial Position 3 Sources and Uses of Fund 4 Notes to the Accounts 5-7 Ghana Partnership for Education Grant (GPEG) (P129381-TF013140) STATEMENT OF FINANCIAL PERFORMANCE FOR THE PERIOD ENDED DECEMBER 31 2014 SOURCES Funding 2a 23,914,030 22,684,764 ib Interest Earned 2b 40,796 73,800 Exchange Gain - 42,853 23,954,827 22,801,417 USES OF FUNDS(Components) District Grant 3 16,737,606 9,443,420 School Grant 4 6,113,515 7,250,865 Programme Management and Institutional Strengthening 5 2,752,216 1,538,293 25,603,337 18,232,577 Surplus/ (Deficit) (1,648,510) 4,568,839 STATEMENT OF ACCUMMULATED FUND FOR THE PERIOD ENDED DECEMBER 312014 Balance at the beginning 4,525,986 Excess of Income over Expenditure for the period (1,648,510) 4,525,986 Balance at the end 2,877,476 4,525,986 2 too F, Ghana Partnership for Education Grant (GPEG) (P129381-TF013140) STATEMENT OF FINANCIAL POSITION AS AT DECEMBER. 312014 W- CURRENT ASSETS Bank Balances 6 2,877,476 4,525,986 2,877,476 4,525,986 CURRENT L LIABILITIES NET ASSETS 2,877,476 4,525,986 REPRESENTING L Accumulated Fund 7 2,877,476 4,525,986 rF 6 L L L Ghana Partnership for Education Grant (GPEG) (P129381-TF013140) SOURCES AND USES OF FUNDS FOR THE YEAR ENDED DECEMBER 31, 2014 FINANCING GPEF GRANT 23,914,030 22,684,764 Funding from other sources: - - Interest Earned 40,796 73,800 TOTAL FUNDS AVAILABLE 23,954,827 22,758,564 PROJECT EXPENDITURES CATEGORY 1 2,752,216 3,869,870 CATEGORY 2 16,737,606 7,111,842 CATEGORY 3 6,113,515 7,250,865 B 25,603,337 18,232,577 Add/(Deduct) Increase in Accounts Receivable Increase in Accounts Payable NET CASH (OUTFLOW)/INFLOW (1,648,511) 4,525,986 L Analysis of Changes in Cash and Cash equivalent - - L Balance at JANUARY 1, Net Cash (Outflow)/Inflow 4,525,986 - Balance at JANUARY 1 2,877,475 4,525,986 Analysis of cash & cash equivalent IDA Special Account (Dollar) 1,339,019 1,739,856 IDA Special Account (Cedi) 349,139 1,698,213 District Bank Accounts 1,189,318 1,087,918 Cash in hand - - W 2,877,476 4,525,986 4 bo Ghana Partnership for Education Grant (GPEG) (P129381-TF013140) NOTES TO THE FINANCIAL STATEMENT FOR 31 DECEMBER 2014 NOTE 1. Basis of Accounting The Financial Statements are prepared under the Historical Cost convention Accounting Policies The following accounting policies have been adopted and applied consistently in dealing with items considered material in relation to the GPEG's Financial Statements. a. Revenue Revenue is accounted for on cash basis. This means that Revenues are recognized and recorded only when they are received and not when they are earned. b. Expenditure Expenditure is accounted for on cash basis. Expenditure is recognized and recorded only when they are paid and not when they are incurred. All current operating expenses are accounted for in the period incurred. c. Foreign Currency Transactions Transactions that are denominated in currencies other than the United States Dollars are translated in United States Dollars at the exchange rate prevailing at the date of transactions. Transactions in the Comprehensive Statement of Income and Expenditure for the year are translated using the average rate. Balances denominated in currencies other than the US Dollars are translated into US Dollars at the rate prevailing at the Balance Sheet date. Gains or Losses resulting from foreign currency are taken into the Income and Expenditure accounts for the year in which they arise. Ghana Partnership for Education Grant (GPEG) (P129381-TF013140) d. Fixed Assets Fixed Assets are expensed on acquisition and therefore no depreciation shall be charged on Property, Plant and Equipment. NOTE 2. Revenue a. Revenue is made up of IDA Withdrawal Applications which were received in the respective years. b. Interest comprise earning from Ecobank Ltd. Bank Accounts on IDA Funds NOTE 3. District Grant These are sub-grants allocated to deprived districts to support key educational objectives. The district grant refers to as Component I under GPEG. This Component focuses on providing annual non-salary resources to deprived districts, additional to existing resource flow to support Annual Programme of Work (APW). The district grant is made up of Funds released for districts annual programme of bo work (APW) and Untrained Teacher Diploma in Basic Education (UTDBE) NOTE 4. School Grant The school grant is Component II under GPEG and it is structured to supplement the capitation grant to all basic education schools in deprived districts with an explicit focus on improving teaching and learning. The School Enrollment Grant was disbursed to basic schools in the deprived districts base on the enrollment numbers of each school whiles the School Base Grant was allocated base on a fixed amount to each category of the Basic Schools. (ie KGs GH0650.00, Primary Schools-GH01,000.00 and GH0800.00 for Junior High Schools). This comprises School Enrollment Grant and School Base Grant. 6 Ghana Partnership for Education Grant (GPEG) (P129381-TF013140) NOTE 5. Programme Management and Institutional Strengthening Programme Management and Institutional Strengthening represent Component III under GPEG and this expenditure refers to the General Administration and Operating Expenses incurred at the Headquarters in the Management of GPEG programmes. The Programme Management expenses include the following: I 2014 - ~Uss ~ 150,075 Monitoring 233,647 610,840 Training and Development 738,474 777,353 Operating Costs 1,778,960 Bank Charges 1,135 25 2,560,337 1,538,293 NOTE 6. Reconciled Cash Book Balances These represent balances on the Project Designated Accounts and the beneficiary District Accounts. IDA Special Account- Dollar 1,339,019 1,739,856 IDA Special Account- Cedi 349,139 1,698,213 District Bank Accounts 1,189,318 1,087,918 Balance at the end 2,877,476 4,525,986 NOTE 7. Statement of Accumulated Fund a This represent Un- allocated cash balances from Withdrawal Applications and Exchange Gains on Project Funds. 7