Ref: BEF/A&F/15/,4S93- 94 Dated: March 25, 2015 To, A Ms Huma Waheed Team Team Leader BESP The World Bank Country Office Pakistan Sector G-5, 20 A, Shahrah-e-Jamhurat Ramna 5, Islamabad. Attention: Financial Management Specialist, World Bank, Islamabad. Subject: Submission of Audited Financial Statements FY 2013-14 (Balochistan Education Support Project IDA Credit 4203-PAK) Kindly refer to the Financing Agreement "The IDA Financing Agreement No: 4203-PAK Balochistan Education Support Project" between the International Development Association and Islamic Republic of Pakistan (the "recipient") dated 10th July, 2006, enclosed herewith please find complete set of audit report FY 2013-14 in original, which includes; 1. Audit Report to the Board of Directors 2. Audited Financial Statements 3. Management Assertion for fund utilization. Mahboob ul Haq Director Finance, Admin: & HR Copy for information to: Section Officer (WB-Ill), Economic Affairs Division, GoP, with reference to his letter No.8(5)IDA-Il/04 dated March 10, 2015. 32- C Railway Society, )olnt Road, Quetta Phone No: 081-2440761, 2447943; Fax No: 081-2447953 uri: www.bef.org.pk Email: info@bef.org.pk 1 1 , "blotsantbuzathon founbatUon, * "AUDIT REPORT" I I I FOR THE I I Financial Year 2013-14 I I I ; 1 1 y£ Audited by: AR20 Anjum Asim Shahid Rahman 1 3 Chartered Accountants Pakistan member of Grant Thornton International Address: 1-Inter Floor, Eden Centre, * 43 Jail Road, Lahore T +92-42-37590214-6 GrantThornton * I I I * I I I Ref: BEF/A&F/15/ Dated: March 26, 2015 Ms Huma Waheed Team Leader BESP The World Bank Country Office Pakistan Sector G-5, 20 A, Shahrah-e-Jamhuriat Ramna 5, Islamabad. Attention: Financial Management Specialist, World Bank, Islamabad. I Subject: Management Assertion FY 2013-14 - BESP IDA Credit 4203-PAK Kindly refer to the Financing Agreement 'The IDA Financing Agreement No: 4203-PAK Balochistan Education Support Project" between the International Development Association and Islamic Republic of Pakistan (the "recipient") dated 10h July, 2006, Designated Account # 7853-5 in the name of Project Director, Balochistan Education Support Project was opened with the National Bank of Pakistan, City Branch, Quetta, It is hereby certified and asserted that the funds received in designated account during FY 2013-14 have been incurred for the intended purposes of the legal documents under project activities. I I Mahboob ul Haq Director Finance, Admin: & HR I I I I I I 32- C Railway Society, Joint Road, Quetta Phone No: 081-2440761, 2447943; Fax No: 081-2447953 url: www.bef.otg.pk Email: info@bef.org.pk I I I I 0 Q GrantThornton m Anjum Asim Shahid Rahman An istint fo gro th"1-Inter Floor, Eden Centre, An instinct for growth :Pa ::stan. n3oo 43-Jail Road. Lahore 54000, T +92 42 37423 621-23, 37422 987-88 F +92 42 37425 485 www.gtpak.com AUDITOR'S REPORT TO BOARD OF DIRECTORS We have audited the annexed balance sheet of Balochistan Education Foundation ("the foundation") as at June 30, 2014 and the related income and expenditure account, statement of comprehensive income, cash flow statement and statement of changes of fund together with the notes forming part thereof (here - in - after referred to as the financial statements for the year then ended). It is the responsibility of the Board of Directors to establish and maintain a system of internal control, and prepare and present the above said statements in conformity with the approved accounting standards as applicable in Pakistan. Our responsibility is to express an opinion on these statements based on our audit. We conducted our audit in accordance with the Auditing Standards as applicable in Pakistan, - These standards require that we plan and perform the audit to obtain reasonable assurance about whether the above said statements are free of any material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the above said * statements. An audit also includes assessing the accounting polices used and significant estimates made by management, as well as evaluating the overall presentation of the above said statements. We believe our audit provide reasonable basis for our opinion. In our opinion, the financial statements present fairly in all material respects the financial position of the Foundation as at June 30, 2014 and of its surplus for the year then ended in accordance with the approved accounting standards as applicable in Pakistan. *1 CMRTERED ACCOUNTANTS Engagement Partner: lmran Afzal Lahore Dated: December 31, 2014 I I Chartered Accountants IMember of Grant Thornton International Ltd Offices in Karachi & Islamabad I~If I. I BALOCHISTAN EDUCATION FOUNDATION - BEF (An aogation rristerd under the 13alochistan Education Fondation A&1 , 1994) Balance sheet As atJune 30, 2014 Note 2014 2013 Rupees Rupees Assets Non-current Property and equipment 6 3,682,451 2.918,997 Total non-current assets 3.682,451 2.918,997 3 Current Short term investmenIs 7 246,630,190 - Advances, deposits, prepayments and other receivables 8 5,658,483 3,340,636 Cash and bank balances 9 225,501,311 408,061.631 477,789,984 411,402.267 Current liabilities Accrued and other lIabilities 10 15,577,904 44.171.793 Net working capital 462,212,080 367.230.474 Non-Current flabIlities .Deferred grants 11 97,832,85 91.579,589 Net assets 368,061676 278,569.882 Represented by; Accumulated surplus 12 368,061,676 278,569,882 I 368,061,878 278,569.882 The annexed notes I to 19 form an integral part of these financial statements. I I I I I I MANAGER ADMIN AND FINANCE DIRECTOR Finace.Admn NAAING DIRECTOt D II C Tr' F!narce. Adni:riA jao.D Rw ..... Baa ducauion I I I I I I I I I BALOCHISTAN EDUCATION FOUNDATION - BEF (An oryaniaion RIsterrd under the Baloh.ristan Eduration Foundatia.fiv, 1994) Income and expenditure account For the year ended June 30, 2014 Note 2014 201 Rupees Rupes Income Grants related to assets amortized during the year 11 234,660 565.281 Grants related to income 11 524,412,379 310,847,809 Grant from government amortized during the year 11 52,010,295 48,252,151 Other income 13 90.987,218 34.772.281 667,644,552 394,437.322 Expenditures Project and operating cost 14 576,422,674 359,099.760 Depreciation 11 1,001.612 1.332,233 Administrative expenses 15 669,472 771,319 Scholarships to BEF employees' dependents 69,000 57.000 578,152,758 361,250.312 3 Net surplus for the year 89,491,794 33.177.010 The annexed notes I to 19 form an integral part of these inancial statements3 I II I I I I I I MANA LAI,MIN AND FINANCE DIRECTOR 1MAAING DIRECTR3 Rathisaa Bd"cag I I II I j I I I II I II I BALOCHISTAN EDUCATION FOUNDATION - BEF (An oaganition rqirteird under the Ba/ochisfan Education Foudation Act, 1994) Statement of comprehensive income For the year ended June 30, 2014 2014 2013 Rupees Rupees Net surplus for the year 89,491,794 33,177.010 Other comprehensive income Total comprehensive Income for the year 89,491,794 33.177,010 The annexed notes 1 to 19 form an integral part of these financial statements. I i I I MANAGER ADMIN AND FINANCE DIRECTOR .' DRCT OR Firarce NAGING DIRRC s BaIochistap Fsftwn Fcuwa ialechtstaa EductEa Found.gees I I I I I 'I I I I ' I *1 BALOCHISTAN EDUCATION FOUNDATION - BEF (An oynization zristered Ander the Balachision Edicaion Foundation Act, 1994) Statement of changes in funds For the year ended June 30, 2014 ACCUMULATED SURPLUS Total Rupees Ropees Balance as at July01, 2012 49,971,023 49.971,023 Surplus for the year 33.177,010 33,177,010 3 Balance as at June 30, 2013 B3,148.033 83.148.033 Surplus for the year 89,491,794 59.491.794 3 Balance as at June 30, 2014 172,639,82? 172.639,827 The annexed notes 1 to 19 form an integra) part of these financial statements I MANAGER ADMIN AND FINANCE Finance, o AGWQG DIREnon Balachln uon?n rr.,, 'R Fiouochrutax Mucastom M fad.u I 3 I I I 3 I I I BALOCHISTAN EDUCATION FOUNDATION - BEF (A oranrwtafion ;iistenviunderthe Balachirtan Eduaton FondatonAth, 1994) Cash flow statement For the year ended June 30, 2014 2014 2013' Rupees Rupee Cash flows from operating activities Net surplus for the year 89,491,?94 33,177.010 Adjustments for non cash and other items Depreciation 1,001,612 1332233 Operating surplus before working capital changes (increase) I decrease in current assets Advances, deposits. prepayments and other receivables (2.317.847) 8384.097 Increase / (decrease) in current liabilities Accrued and other Iabilities (28.593.589) 1,44,389 Grant related to assets 3.365,340 1,734,719 Grant related to income (21986,179) (150.595.158) Government grant 24.873,105 28,631,249 Net cash from operating activities 65,834.936 (75.893.461) Cash flows from investing activities (increase) /Decrease in short term investment (245,530,190) 220,125X0 Purchase of property and equipment (1,765.066) (802.299) Neat cas h (used In) t ram Investi ng activities (248,395.256) 219,322.801 Net change In cash and cash equivalents (182.&60,320) 143,429.340 Cas h and cash equivaftrts at the begi nn9ing of the year 4 084061.831 234,632.291 Cash and cash equIvalents atthe end of the year 225,501.311 408.061631 The annexed noles I to 19 form an integral part of these financial statements. MANAGER ADMIN AND FINANCE DIRECTOR US NfGINo DIRECMoA L(2.593,s89) EH442,389 Q3,365,3401u734-71 (O1986179 (150.55,158 I48315 2,3.4 658493 7.8341 (266010 I 2.2.0 I17506 8229 II I BALOCHISTAN EDUCATION FOUNDATION - BEF (,An Orarnizazon is*mi'/cirJ ssUmler tse BalMdhnz kdtan/i o Fatu Ide /99/p Notes to the financial statements For the year ended June 30, 2014 1 FOUNDATOIN AND ITS OPERATION Balochisran Education Foundatinn (BEF / the Foundaton) was set up under the Balochisran Education Foundafion Act, 1994 as an independent and autonomous body by the Govemment of Balochistan (GoB) for strengthening pnvare sector schools and rasing the standard of educarion in Balochistan. In 2006, the 1994 AcT was amended and Balochistan Educatmon Foundaton (Amendment) Ordinance. 2006 was promulgated- The main objectve of the Foundaun is ro underiake all necessary efforts which are conductve towards the provision of educanon facilitics with the purpose Ki enhancmng access and quahry (if education in the pnvare sector. Regs,t!red office of the Foundantion Is in Querta 2 STATEMENT OF COMPLIANCE lThe.c financial staternents have been prepared m accordance with the approved accounting standards as appbcable in Pakistan. Approved accounring standards comprise such Internanonal Financial Reportng Standards (IFRS) isued by the International Accountng Standards Board as adopted by the Institute of Chartered Accountants of Pakistan. 3 BASIS OF PREPARATION 3.1 Accounting convention 1These financial statements have been prepared under the historical co t convention as rnodified by - invesiments which have been measured at amoruzed cost. 3.2 Standards, amendments or interpretations that became effectIve during the year Ilie Company has adopied the following revised standard, amendments and nlerpreraon of IFRSs which became effecuve for rhe current vear LAS 19 - Employee Beneffis - (Reviswd) IFRS 7 - Financial ]nsirurnenrs Diclsures - (Amidnenrs) A mendments enhancig disclosures about tffsetung ,if Fnaniael Assets and financial habibnes - IFRIC 20 - Stripping Costs in the Production Phase of a Surface Mmc - FAS 3 - Profit and Loss Shanng on Deposits The Company expecs that the adoption of the above revisions, amendments and interpretations of the standards wil not affect the company financial statements n the period of initial applicanon. 3.3 Improvements to Accounting Standarde Issued by the NASB - TAS l - Presentanon of Financial Statements - Clanficarion of the requrements fir comparauve informanon LAS 16 - Property, Plant and Equipment - Clarification of Servacing Equipment - IAS 32 - Financial Instruments: Presenranon - Tax EffecTs of Distribution to I-lolders of Eqry Instrunents - IAS 34 - Interim Financial Reporring - Interim Financial Reporung and Segment Information for Total A'sse-s and Ltaabdites. 3.4 Standards that are not yet efective The following revised standards, amendmenis and inrerpretats is with respeci to the approved accounung standards as applicable in Pakistan would be effecnvt from rhe dates menfoned below against the respecrive standard or interpreranon: Standard er Interpretation Effective Date (Annual periods beginning on or after) IlFRS 10 Cnwhdared Financial Stiemeni 0 151 nutv 2015 IlFRS 11 jona A\rangemenis fil januari 2015 IVIU 12 Disclosure of lniercrss in ()ther Einunes (Il January 2015 I[Fl 13 Fair Value Mteasurerneni 01 þlnUar 2015 1AS 16 and 38 Clarification of Acceptable Method of Depreciadon and Amornzation 0 1 january 2016 LAS 16 and 41 Agnculrure: Bearer Plant. 01 January 2014 I E BALOCHISTAN EDUCATION FOUNDATION - BEF (A orgaiizalicn tygilnd under he Ba/oebistan Educeaion FOrao#n Ar, 1994) Notes to the financial statements For the year ended June 30, 2014 lAS 19 Employee Contribunins III Juh 2014 lAS 32 Offsetting Financial Assers and Financtal I1 anuarv 2011 liabites (Amendment) IAS 36 Recoverable Armount I'or Non-Financial Assets (Amendmenr) (11 January 2014 L%S 39 Novanon of Derivatves and Continuation of ledge Accounnng - (Amendment) 01 January 2014 IFRIC 21 Lees 01 January 2014 The adoption of above amendments will not have any impact on the Financial Statemcns. 3.5 Functional and presentation currency These financial statements are presented in Pak Rupees wuch is the Foundation's functional and presentation currency 4 CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS The preparation of financial statements in conformity with the approved accounting standards requtres the use of certain critical accounting estimates, It also requires the management to exercise is judgment in the process of applying the Foundation's accounting polices- Estimtes and judgments are continually evaluated and are based on historical experience, including expectanon of future events that are believed to be reasonable under the arcurmtances. The areas where various assumpuons and estimates are significant to the Foundation's financial statements or where judgments were exercised in apphcation of accountng policies are discussed below- -assumpons and estimates used in determining the recoverable amoint, residual values and useful lives of propety and equipment and intangible assets. and -assumpnons and es umates used in calcularing the provision for impairment f[r receivables. 5 SIGNIFICANT ACCOUNTING POLICIES 5.1 Property and equipment Operating assets - Owned Property and equipment except frethold land is stared at cost or assessed values less accumulated deprecatoon and accumulated impairment INsses, if any. Freehold land is stated at cost or assessed values iss impairment loss, if any Cost includes costs directly annborable to bringing the assets to the location and conditnon necessary for it to be capable of operaing in the manner intended by the Foundation's management. Repairs and mantenance are charged to ncome and expenditure statement as and when incurred. Major renewals and improvements are capitalized and the assets so replaced, if any. are retired. Gains and losses on disposals of assets, if any, are charged to income currently Depreciation Depreciation on property and equipment except freehold land is charged in the straight-line basis so as to write off the depreciable amount of the assets over their estimated useful lives at the rates mentioned in Note 0 to the financial statements. Residual values and ihe useful life of proper and equipment are reviewed at least at each financial Vear- end. De-recognition An item of property and equipment is dc-recognized upon disposal or when no future economic benefits are expected from its use or disposal. Any gun or loss arising on de-recognitn of the asser is charged to income mo the year the asset is de-recognized. Operating assets - Donated Property and equipment, not returnable to the donors, are statred at assessed values less accumulated depreciation in the basis of contractual arrangements with the relevani donors. Depreciatnon is charged to property and equipment over thei expected useful bfe. Repairs and maintenance are charged to income as and when incurred. Mair renewals and improvements are capitalized and the assers so replaced. if are retired Gaitns and loses on disposals of assets if any, are charged to income currenti' I I BALOCHISTAN EDUCATION FOUNDATION - BEF I An aananuon rKgstered owder /& Balorbulan Edncanon touidante Ac. 1994) Notes to the financial statements For the year ended June 30, 2014 52 Impairment The Foundation assesses at each balance sheet date whether there is any indication that assets may be impaired- If such indiscation exists, the carring amounts of such assets are reviewed to assess whether they are recorded in excess of their recoverable amount. Where carrying values exceed recoverable amount, asets -arc wrtten down t their recoverable amount and the difference Is charged to the incnome and expendiure account 5.3 Intangible assets An intangible asser is an identifiable ion-monetary asset without physical substance. Intangible assets are recognized when it is probable that the expected furure economic henefts will flow to the enur, and the cost of the assets can be measured rehably Cost of the intangible asset includes purchase cot and directly attributable expenses incidental to bring the asset for its intended use. Costs associated with maintaining computer software are recognized as an expense as and when incurred. Intangible -assets are stated at cost less accumulated amortization and accumulated impairment losses, if any. Amortization is charged over the estirated useful life of the asset on a sYstematc basis applying the straight line method. Usefd lives of intangible operanng assets are rev&ewed. at each balance sheet date and adjusted if the impact of amorMztion is sigrnfiCant. 5.4 Government grants Government grants are not recognized until there is reasonable assurance that the Foundation will crmiv with the Govrnmnt ant; at: econizd i inomeand evpen-diture account on a sysi-cma tic basis over the penodS in Which the Foundatinn recognizes, as expenses rhe related costs fort which the grants are intended to compensate. Specificaldly, govenmenit grants whose pnrnmry condition is that the Foundation should purchase, construct or otherwise acquire non -currentL ass ets are re cOgnized as de ferre d reve nue i n t he bal ance s heet and rtrnsferred to inco ime a nd expenditure acco unt on a sys temnatic and ra tional b a sis over the useful live s o f the rela ted assets, I Government grants that are receivable as compensawitn for expenses; or losses already incurred or for the purpose of giving immrediate financial support to the Foundanion with no future related costs are recognitzed in incomeit and expendi ture accosuntr in the pe rio.d in whi ch t hey b ecouime r c eivable.- IMTe be ne fit o f a go",vern ment loani at a be low -mrarke t ratev o f i n terest is t reatied asz a govwern men t grantr, meas ured asN t he difference between pro ceeds received and the fair value of t he loani basetd on prevailing market Iterest rate. 5.5 Cash and cash equivalents Foor ihe purpose of' cash flow statemntn, Cash anid cash cqwvalcrnts comprise cash in hand and tank lsalnces -And other short term highly Liquid investments that aire readily convertible to known am'riunils or cash and which ire subpeci too ;in insigquficont risk tif change in value. 5.5 Financial instruments 5.6.1 Financial assets Financial assets are recognized when the Foundation becomes; a party tot the contractual provisions% of the financial instrument and a,re measured initially 'At fair value adjusted by transaction costs A financial asset is% derecognized when I the contrictua] right-s to the cash flows from the Financial asset expLre, or when the financial asset and -all substantial risks and rewards are transferd. Subsequent measurements of Financial assets are described seow. Financial assets of the Foundton arze classified as follows: Loans and receivables oeans and receivables are non-denvave finncial assnet with fixed or deterMInable payments that are nt quoted tn an actve market. After initial recognition, these are measured at amortized cost using the effective interest tehn. eI s, eprovision for impairment. Discounting is omtted where the effect of discounting is immaterial Thee are included in current assets, except for maturities for greater than twelve months after the balance sheet date, which ar classified as non-current assets Loans and receivables with less than tvelve months maturities are classified as current a ofss The Foundainn cash fand cash equivalents, deposits and other receivables fall into this caregOry oif financial Ae an Uxend urecavabl" artsubjectnt review for impairnt at each reporting date to identify whether there is obtevalve edeence beattweefnca ascetds rec =ed.tefs au ftela ae npealn ak neetrts Caham as quvlet FI h ups fcs lwsaeet ahadcs qiaet ops ahmhn n akblne n te shot er hghy qud nvstens hear radlycoveabe o non monI o cshan wic ae ubec t 9 Ininfen kofcag nvle I I BALOCHISTAN EDUCATION FOUNDATION - BEF (An atyanzation ut red under the Ba/ochiamn Education Fowdation Ac. 19941 Notes to the financial statements For the year ended June 30, 2014 Investments held to maturity Held-to-ma turit-y investments, are: non-derivative financial assets with fixed! or detLr=nable: payments and fixed maturity 3omtrt ivsmn- are mesrda mrie otuigtheefctvinrstmho[isaympirw- 5.6.2 Financial labilitles The Foundation's financial liabilities include accrued and other liabihates, Financial liabilities are measured initi-afly -at fair value, less atributable transaction costs. Financial liabilities are measured subsequently -at amortized cost using the effective interest method. 5.6.3 Offsetting of financial assets and liabililties A financial ass,et and financial liability is ioffset and the net amount I- reported In the balance sheet if the Foundation has a legally enfiorctablc right to set Off the ii-ansaction and alsio intends either to settle orn a net bai%s tor to realize the asset and st!ttle the liabillity simUltaneouLy 5.7 Taxation I Ivsax charge hor current taxaton is baed o n taxable inurome at the curretn ryc oyf taxation afer raking into account the applicable tax credits and tax rbates realized , if iany. provision for tAxanon has not been made during the year as the Foundation Is exempt from tax utnder secinn 49 if the Income Tax Ordinance, 2001 and the Foundation has alsd obtained the Free rax Number 9040301 fromr Federal Board of Revenue 5.6 Provisions A provision is recognized in the financial statements when the Foundation has legal or constructive obligaon as a result of a past event and it is probable that an outflow of resources emb odying economFic benefits will be reuired to settle the obligation and a reliable estimate can be made the amount if obligation 61 PROPERTY AND EQUIPMENT 3 204 Oiean set and 7.043l 1 1,he05 liabil2 6r06,56s34mu3 6,30ne9o246l3 O$TTation appliaes ta crs s re ,237sh 5 0 23n641 xo7 1n d u gt er h FoRTC u dAoReem6 nd 15cu,n 20 1uf th 62.I3n or 56,9 20 14d ,he 1,214,148 101 2013jf i .201 "U o d t he 7,11 802e 16 Fr7Ta.ume 9 00 05 ro.6 Fede.0r3 6.10.6 2f3R,e0n Fumitureaudl 1ures 1,237,065 - 1,237,065 20 1o23uw r1f m4n c 1236413 5 Vehicles 15,583,936 - 16,513.136 20 132.836 76.,952 14362,53 1,51,100 Total 23.052.515 62,216W 23,554,51 11,5,6,887 1,332,233 20,945,532 3XU11145 I 20M COST Doeprec iation WDV ~~PART1CULARS As at J uly 01 Adiont AatJn As it Jul . 2012 For thE, vear Asat June Asat June 3o. 01 Doton)320101 30, 2 014 2014 -- .----- ----- -----R- upoos ---------------- ------ ----R----s Office and o the4r 5217D 8 0.9 70316 1,765.546.5,805,1,230 6.10866 3,1 ,4.679 72,4,0 Iequpme nt FurnItu re anrd fixtu re s 1,237.05 1,237.066 20 1,.232,1138,5 IHI 647 2305- Vehicles 15.583,936 - 165M9t36 20 132.8368 766,952 14360,75 1,214.148 ITota , 23,80171,1 10, 2900 2 ,16 .117 20 1,5 32 1,001,21 3 21 .947,42D 3. 8,41 201 COTDpIito o I:M sa 1 ,Adt saunA tJld,21 h er As10n sadn 0 I BALOCHISTAN EDUCATION FOUNDATION - BEF I An owanization registered under the Ba/ochrian Education Foundation Act, 1994) Notes to the financial statements For the year ended June 30, 2014 I 7 SHORT TERM INVESTMENTS Held to maturity Invastments at amortized cost R0 Bank Ad Falah Ltd PACRA AA 10-04-2015 9 90% 68,017,790 Soneri Bank Ltd PACRA AA- 13-04-2015 10.10% 09,306,200 - Sind Bank Lki PACRA A4 13-04-2015 10.10% 89,306,200 - Total 246,630,190 - 7.1 Short term investments include fixed deposit certificates invested in different banks in the light of decision of the Investment and Endowment Committee of BEF for the short term period with financial institutions offering better rates with good credit ratings. Note2014 2013 Aupecs Rupees 8 ADVANCES, DEPOSITS, PREPAYMENTS AND OTHER RECEIVABLES Prepaid insurance 44.520 629.992 Prepaid office rent 184,944 Advances to employees against expenses 12,450 199.100 Security deposits 250,000 250,000 Insurance claim receivable 2.076.600 Intrest receivable on investments 5,351513 - Total 5,658,483 3,340.636 9 CASH AND BANK BALANCES Cash in hand 12,160 30,000 Cash at bank Current accounts 212o809 724.466 Saving accounts 9.1 203,178,454 373,179.298 Designated account 9.2 21,820,914 33.850,893 225,212.177 407o754,657 Cash at GPO 276.974 276,974 Total 225,501,311 408,061,631 9.1 Ths carries Mark up rate ranging from 9-5 to 8.5 % (2013 12.40% to 9.41%). 9.2 The designated account represents Deposits and replenishments received from the World Bank. Note2014 2013 10 ACCRUED AND OTHER LIABILITIES Operational expenses payable 1,293,652 978.169 Funds payable to CIPs 3,495.210 Subsidy payable to PECs 10,142,170 6.779.859 Other payables 10.1 130,000 35.524.572 Subsidy payable to IDCEs 51i,872 889,183 Total 15,577,904 44,171,793 10.1 As per Itei-XVI of the 24th meeting of the Board tif Directors, Rs. 58.960 million have been recognised as other income of the Foundation because such funds had been allocated by GoB for strengthening the Foundariron. I I' I I I BALOCHISTAN EDUCATION FOUNDATION - BEF (A,|n oiganztion irqteryd under me Balobivan Educaton Foandaon Act 1994) Notes to the financial statements For the year ended June 30, 2014 11 DEFERRED GRANTS (WORLD BANK FUNDS) IDA Grants related to assets 11.1 & 11. 8,007,755 4.642,415 IDA Grants related to income 11.2 & 11. 5.188.453 27.173.632 Government Grants related to income 11.4 84.838,647 59 763.542 Total 97,832,856 91,579,569 11.1 Grants related to assets Opening balance 4.642,415 2.907.696 Receipts from WB during the year 3,600,000 2.300,000 8,242,415 5,207,696 Amortization during the year 234,610 565.281 Total 8,007,755 4,642.415 11.2 Grants related to income Opening balance 27.173,632 177,768,790 Receipts from W8 during the year 502.427.2DD 100,252,451 529,600,832 338,021.241 Grants recognized as income 524,412,379 310,847.609 Tota 5,188,453 27,173.632 11.3 Internaton.d development agency (IDA) (f World Bank disbursed funds Nto BEF for Balochistan Educanon Support Project (BESP) under 3 categories. These funds have been lent to GoB which had been disbursed to the foundation as grant and GoB would repay such loan to the IDA The grant is recogruzed as an income with an amount of the project cost relaung to these 3 categuries of BFSP. 11.4 Government grant Opening balance 59,763,542 31.132,293 Receipts trom GoB during the year 76,883,400 76.883.400 136,646,942 108.015,693 Grants recognized as income 14.4 52,010.295 48.252.151 Total 84,636.647 59,763,542 12 ACCUMULATED SURPLUS (GENERAL FUND) Opening balance 278,569,82 245.392,872 Add: Surplus for the year 89,491,794 33,177,010 Total 368,061,676 278,569,882 13 OTHER INCOME Profit on investments 5.349,433 - Bank profit 26.473.613 14.502,537 Others 204.600 1,430,972 Grant Income 13.1 50,959,572 - Total 90,987,218 15.933.09 13.1 As per Item-XVI of the 24th meeting of the Board of Directors, Rs. 5B.960 mfllion have been recognised as orher income of the Foundation because such funds had been allocated by GoB for strengthening the Foundation, 14 PROJECT AND OPERATING COSTS CATEGORY 3 14.1 65,670.873 60,422,367 Consultants' services and training other than those financed under category 5 CATEGORY 4 14,2 48,832,718 49,629.988 Incremental operating costs other than those financed under category 5 CATEGORY 5(a) 14.3 462,119,083 249.047.405 Grants: (a) under Part 1(a) of the project for goods. civil works, consultants' services, training and incremental operating costs Total 576,422.674 359,099.760 I1- 1'A I I BALOCHISTAN EDUCATION FOUNDATION - BEF tA' araniaion ngsted under the Balochisan Education Fomndation Ay, 1994) Notes to the financial statements For the year ended June 30, 2014 Note2014 2013 Rupees Rupees 14.1 CATEGORY 3 Payments to (CIPs) 65,292,534 54.953.522 Payments to (TIPs) . 5.288,845 Short term consultancy 378,339 180,000 Total 65,670,873 60,422.367 14.2 CATEGORY 4 Salaries and other benefits 37.563.767 37,349.168 Coribibution to provident fund 2,180,514 2,299,807 Office rent 1,056,444 1.341,956 Traveling and conveyance 2.339,794 2,047.467 Vehlcle running and maintenance 2,024,308 2.837,938 Stationary 162.550 100,782 Postage 30,336 29.585 Repairs and maintenance 14.2.1 945,702 661.180 Entertainment 96.231 61.055 News papers and periodicals 23,510 29.998 Utilities 14.2.2 936,729 913,664 Advertisement 154,997 17,150 Auditors' remuneraton 544,004 493,500 Bank charges 171,784 111.570 Printing and publications 183,440 182.136 Transportation 29,600 B04,285 Research - 189,374 Others 188.092 159,413 Total 48,632,718 49,529.988 14.2.1 Repairs and maintenance Building 52,910 50.470 Vehicles 743,314 9630 Furniture 250 131,208 Equipment 59pO24 K6 07 Computers and accessories 90,204 373.265 Total 945,702 661.180 14.2.2 Utilities Electricity 245,574 195.396 Gas charges 437,139 488.128 Water charges 191,286 174.450 Telephone charges 62,730 55,690 Total 936,729 913,664 14.3 CATEGORY S(a) Payment to parent education committees (PECs) 14.4 52,010,295 48,252,151 Schools setup costs 63,070,000 1,555,185 Stamp duty - PECs 10,000 12.500 IDCEs contributions 33,312,898 26,677.569 PECs construction 313,715,890 172.550.000 Total 462,119,083 249.047,405 14.4 Total Pro)ect cost of Rs. 576,422,674 (2013: Rs. 359,099,760) includes an amount of Rs. 524,412,379 (2013: 310,847,609) Rs, From the World Bank/IDA (Internarional Development Agency) and Rs. 52.010.295 (2013 Rs. 48,252151) from rim Coil I BALOCHISTAN EDUCATION FOUNDATION - BEF 3 $ a:anijaion rEtered ander the Ba/orhivan Tiduction Fondatoy A4 1994) Notes to the financial statements For the year ended June 30, 2014 I Nota 2014 2013 Rupoes Rupxees 15 ADMINISTRATIVE AND OTHER EXPENSES Insurance of vehicles 531,152 072,479 Depreciation 766,952 766.952 Vehicle tracking cia!Res 138,320 98L840 Total 1,436,424 1.538,271 16 TRANSACTIONS WITH RELATED PARTIES Related parties comprise Government of Balochisan, entles having common directorship with the Foundation, key management personnel ad provident fund. Transacuon wnh related parnes are as under: Related paMy Relationship Basfs of relationship Nature of tranisaction 20 14 2013 Governmeant ofBa loch ismton R elrated p arty Significanthinfluence lWrking capitaI grants received 25.000.000 25,000.000 I GovemmentofBalochiastan Related party Si gnlItfcant int11ue neI Speciflcogrants receive d 75,883r4OO 78,583.400 SRSP Related party Common directors.hip IPayments made to related party 9,659.722 7,405,311 ProsAdeni Fund lRelated party JContributions made during the year 2.180.514 2L299,807- 17 FINANCIAL INSTRUMENTS 17.1 Reserves management The Foundation manages its reserves to ensure that it will be able to contInue as going concern. The Foundautn's verall srattgy remains unchanged from 2011 The Foundation is not subect in any externally imposed reserves requirement. 17.2 Categories of financial instruments Financial assets Held to maturity investments 246,630,190 - Loans and receivables 5,613,963 2,525,700 Cash and bank balances 225,501,311 408,061.631 Total 477,745,464 410,587,331 Financial Ilabilitles Amortized cost - 8.385.791 Total 8.35,791 17.3 Financial risk management objectives The Foundation has exposures ft the ftdIwing nsks from Is LSe 0f fLmanciAl instruments: a) Credit risk b) Liquidity risk c) Marker risk The Board of Directors have overall responsibdity For the estrahbslihment and oversight of the Frundano's rsk management framework. The Board is also responsible for developing ;nd monitoring the Foundatn's ask management policies. I I I I BALOCHISTAN EDUCATION FOUNDATION - BEF (An orxaniyzaon egistmd under t/m Balochin Edmntion Foundaäfn A, 1994) Notes to the financial statements For the year endedjune 30, 2014 a) Credit risk Credir risk represenrs the financial loss thar would he recignized at the reporung date if the counter parties fad co mpletely tio perform as co nivacied. Credit risk aeprincipally from bank balances, investments and deposrs and other receivablv, Our if total financial assets of Rs. 477 733 million (2013: R,. 410280 miffinnx the financial assets that are subjecr &o credu risk amounted to Rs 477.733 milhon (2013: Rs. 410.280 million). Concentradton of the credit risk arises when the number of counter parties engaged in sirnilar business activites or have similar econumic features that would cause their abiliucs to meet contracruai obbgainn to be similarly effected by the changes in economic, polincal or other conditions. The Foundation believes that it is not exposed TO major concentraffion risk. I'Tc Foundadon has placed fund f with nancial nsurunons with high credit ratng. The Foundation assesses the credit qualiry of counterparties as sansfactorv. b) Liquidity risk Ljquidiry risk is the risk that the Foundanon wil not be able to meet its financial obiganons as they fall du The Foundanon's approach to iTanaging qimdity is to ensure, as far as possible, that it wil always have sufficient bquidity to meet its obligations when due, under both normal and stressed condinons, wirhout incurring unacceptable losses tir risking darnage ro the Foundadon's reputation. The Foundarion uses different methods which asists it in mortormng cash flow requiremetirtt, Typicall the Founidation enwre,s thai t( has; sufficient cash on demnand to meet expecred operational expenses for a reasonable period, including the servicing (if financial ohliganons c) Market risk Marker risk is the risk that vhanges in market priev, such as foregn exchan.ge ratvs, tilreresr rares and Cqum- pnces wil affec the Foundanon's value of ts finantial :nsrruments. [The Fioundau'in is n,tl materalh- exposed t, inarkel nsk 17.4 Fair value of financial instruments Tht carrying values iI the finaneial assers ad financial babihues app rximare their fair valuts 18 GENERAL Figures in these Unancial starements have been rounded off to the nearest ruper. 19 DATE OF AUTHORIZATION FOR ISSUE These financial statements have been approved by the Board of Directors of the Foundaion and authoirized for issue nn MANAGER ADMIN AND FINANCE DIRECTO. 9i T£ GN IRE1 Fá a gø $$mS cto DALOCH ISTAN EDUCArION SUPPORT PROJECT- BESP Anneuur -A SUM MA RY OV SOURCES AND ISE OF FVND.S FOR TIE YEAR ENDED JUNE30. 2014 2014 2013 , -R e e - - --R p et- Sumaru ~riianeplE Acual fqr ihe Vear CimulaEive Edt Acqual for Ihe Year Cunalitive lo date Summa ry erunuren ad mpplic~a n I'u linds (Balochistu Educ*don Supporl Projeel) IOpening balance Adjustmnt d : G ø Fnds 76.883,400 3 1.820,495 7b,8834M 234.937,095 Snt l¯unds 505,402,068 I,823,855,338 i62.52.45l 1.3 18453.27Q iFPund' Avaîabe 668,028.111 2.135,675,833 446.415.682 1.553,390.365 Lesa: Use af Funds i Civil works other Lhmi those financed under category 5 2 Fimnium & fixture ;other than ihose finaenectd unidercategory 5.I,765,66 13,066803 102.260 Ii,301,737 I3 C~nullakrits'sL"vices and triining offier ifhkn ihose inanced under caegory 5 65,670.473 48470M,424 60.793377 4 19.037.551 4 111cgrmental operaing c"$sis ther than tho-re ri maced UNdkr categoly 5 ,48,43 2,7 tla 297,049A$55, 50,U29,1197 M4.41117.lý 5{a) Grnms- Grånts 0) Under Part l(e) of the projeet for Goods, civil wors, Consukånts' Service. 249047405 118,711,216 18,715.39Q 113.125.839 211,566.638 462.119,083 1,111,120,669 Tri ng and Ineremerial OperingCost, sand ( b) nder part 2 Pf the projeuci for su,s id - - - 139,889,711 Totl Unes PKR 360,673,039 138,791,039 30,670,403 154,050,3*9 254,675,989 57ä,187,740 2,045.835Å62 j~lNÄGING DI REC ft 1 ~-L-rerT &~*frhstan Edvåcatlern - lrH HR Foundatton u , Ffla dt.o II BALOCHISTAN EDUCATION SUPPORT PROJECT - BESP Amuure- C Sialement or camparlson of budgeted avd actmal amøøunNt FOR TiE VEAR ENDEDJUNE 30, 2014 2014 2013 ---Rupees--- ---kupeel--- Ex penditure deta il by projert Activi y (uøluhistan Eduguilon SuppGri Projeci) ACVITIES Budgeted 20114 Aalim 2014 Budgted 2013 A[ct 2013 Commoa.ity Sthonkl IDA raebrrsý Salnncs, Olher Operatioil Coss (25,0) 1.1426.926 4,2711.800 School Senp Malenl Coni 70.997,200 63,105,00 14,250,000 - School Consiselion Cosi 479.372,690 347,01 1,718 4 12.919.200 199227.5h9 Community Schik ol Gi, Teachers'Snlåries 76,8a3,400 52.02Ci.29 1in073 4.5 Offier øperalionul Costs . - (2.711,115 CIPs / NGOs Delivey Cosi- Mobihliti SupeMmor & Mon itonng 84,005,788 65,292.534 92,728,309 54.953.522 lCst ( A j 711.259.68 527.411,6V1 631,790.395 304,000.927 Private School$ Subsidy for Facility Mmeri41 - Studen1 Enr3llment- Student Altendance-- Ips, CoNt ( R I Capacity Building- Cåpae1ty Buildin ( IE /Sehool Managenem) - CapasLry Bud1ng (Tcachers) - 7579,443 5,288.845 Cåpacuys Boldin (CIPs & ?PPi - I.0M - Cåpacily Bulddnglnrhers) 7,964.81% 378,339 11.211,375 &5 1. 10 l' CUst ( C 1 7,964,000 378,339 20.790,818 5,84u,355 REF: BEFOffic Building 32,099.392 - 18,88t.995 Capacily Building (Trainings. Resenrvh, Shmdy 1-ours, etc) - - 1.0,0 Oflfie equipmeni and Furnitum 2,060,000 1.765.066 ,909,000 802.260 locremenIal Operatmg Csi 68,715,669 48,632.71 1 62.974,358 50.029,497 Toil D 102.175,060 50.397,784 84.765.353 50,831,757 rotal A+B+C+D 822,098,128 578,187,740 137,35,566 360.673,039 I i« I g.: -? TM? UNAGWNG Di t FinteR È@*Ckhlan Edu- Balochlstaa Education Support Projeet Annexure-D List of loventories Purehased 5,NO _________ _ For the Vear ended June 30, 2014 Date or S.NO Item Lcation Category luventory No. Cost Date fe S ~ Purebase Mr Aszd Yar (Accounts Ofricer) Equipmeni BESP/BF/007 2,300 I GFC Wall Bracket Fan PO Accounts Equmpment BESP/BF'008 2,300 07/07 2013 Mr. Mustafa Kasi. (F S) Eqwpmient BESP/BF/0(]9 2.300 Mr. Mahhoob-ul-haq. Direcior Euimn BSPDL-V01 9301 Sýý 699MSZ1 qimn EPDL T0| 9,0 DELL INSPIRON 5537: INTEL Core Mr. Hameedullah, DD Admin 17 4500U Processor I 5GH-z/4MB S f BROKSZI Equipmeni BESP/DELL l/012 93.900 Cache. 8GB DDR-Ill RAM/I TB Mr. Nadeem-ud-din, DD IT Fquipneri BESPIDELL LT'Ol3 93.90 IiDDIDVDRW/15.6" LED Display S DHCFSZl AMD RADEON HD 2GB Dedicated Mr. Samiullah Paneat, DD M&E Equipmen 13ESP/DE[,. LT/014 93,9tW 2 Graphic, 8-IN-1 Memory Card S # H4RLSZIl 512014 Reader/HD Cam/ Sved Niamatillah, Direetor Consi 5/6/2L94 Wireless/Blueioolh/Slereo Speaker S n JB9MSzil Equipmeni 1ESPIDElL LT,0l5 93.90 wilh Waves Max Audio, Chiclei Mr. Mohammad Safi AD Admin 93.900 Keyboard With Touchpad & Num s 32MSlEquipmeni BESP/DELL LT/16 9 Pad. 06 Cll Battery with Basie Prof Dr. Abdul Tawab, MD Carrying Case S# IWLKSZI Ewqupmeni BESP/DELL LT/07 93.900 Mr Aimal Khan. DD R&E Equipmeni BESP/DELL LTIO 90 S # DSCNSZI E p B P L /9 Neiwork LaserJet Prinier Hp Mr. Mohammad 7.eeshan. DDF Busmness LaserJet Pro 400 M401dn 2Equpment BESP/PR/04 32,000 662014 Network gigabit & USB Connecuvity A4:AS:A6:B5 (nS) paper size Duplexer 1200 1200 dpi, 256 MB RAM, 35 ppm letter (With lp Ms. Asma Ayub, PS Ops Equipment BESP/PR/005 32,000 16/062014 Genuine Toner Cartidge) 5 # PHKGD10825 Network Color Laseriet Printer 1-p LaserJet Pro 400 M45 I nw Ethemet USH 2.0 BlSt i Wifi 802.11 b/g:n M Mahbwb-ul-haq, Direer 3 Conneetivily A4 A5 A6:B5 (JIS) Mr MahbNb-hq Drec92 Equpneni BESP-CPR -002 155.6 16:06,2014 paper size 6D0600 dpi, 128 MB RAM, 21 ppm monoicolor (Wih Hp Genuint Toner Carlidge) - Sharp 452 U : Mr Mohammad Safi, AD Admm Equipment BESP/PC/002 30/06/2014 I Speed 45 CPM RADF, Standard S t 45004464 878.00 Network Printer: Builtin Auto Duplex MT. Nadetm-ud-din, DD IT Unit, Standard Trolley SU 45004444 Equipmeni BESPIPC/f03 30/06/20 14 My Passpori Alira Hard Disk Scrial Mr Nadeem-ud-din. DD IT Number WX61AB381664 S WX6A B381664 Equipment BESP/HD004 9.000 30/06/2014 Total i,765,t&66 If",4N0ING DIREC OP Ulgchtslan Education powtdatlion I I Annexure-E Name of the Project: Balochistan Education Support Project Project Financial Statement SOE Withdrawal Schedule As of June 30, 2014 Loan Credit No 4203 Withdrawal Application Details CATEGORIES AS PER LOAN AGREEMENT eo~ E& ca W/A V) ~o t.s I W/A Currency W/A Amount Q 1n Total Number E 5 = 26 US$ 2,102,588 2102588 Pak Rs, 211,745.321 211,4"2 27 USS 1.868,532 1,868,532 Pak Rs. 183,036,748 183,036,748 US$ 1,122,329 1,122,329 Pak Rs. 110,619,999 110,619,999 I TOTAL us$ 5,093,449 _____5,093,449 Pak Rs. 505,402,068 _____505,402,068 * crrotal in M1$___________ 5,093,449 G/Toal i RS505I028683 I 2 I G/Total in DR Signature of Audit Officer Signature of Project Manageme INWAAGING DIBRC?OR atedtstan Adsc"aie I I I 1 I I