* Grant Thornton . Financial statements and * Independent Auditors' Report Enhancing Teacher Education Program ("ETEP") * Credit Financing Agreement No. 5878-VN U * For the year ended 31 December 2018 Enhancing Teacher Education Program ("ETEP") W Credit Financing Agreement No. 5878-VN For the year ended 31 December 2018 U U Contents U U U * Page Part I - Financial Statements 1 Report of the Program Management Unit 2 Independent Auditors' Report 4 Balance sheet 6 Statement of Sources and Uses of funds 7 Statement of grant withdrawals 9 Notes to the financial statements 10 Part I - Auditors' Report on the Compliance 19 Part III - Auditors' Report on the Internal Control 22 Appendix 25 IIH II U U U U * * * £ Enhancing Teacher Education Program ("ETEP") Credit Financing Agreement No. 5878-VN For the year ended 31 December 2018 U I S U U U U I I U acaSaeet I I I I U I1 I Enhancing Teacher Education Program ("ETEP") Credit Financing Agreement No. 5878-VN For the year ended 31 December 2018 8 Report of the Program Management a Unit 8 U The Program Management Unit ("PMU") submits its report together with the audited financial statements of the Enhancing Teacher Education Program ("the Program") for the year ended 31 December 2018. I Auditors The financial statements for the year ended 31 December 2018 have been audited by Grant Thornton (Vietnam) Limited. 5 Program Management Unit The members of the PMU are responsible for overall direction and management of the Program during the period * and to the date of this report were: Program Management Unit Mr. Nguyen Xuan Thanh Program Director (Appointed on 21 January 2019) Mr. Nguyen Ngoc Dung Program Deputy Director (Appointed on 21 January 2019) Program Director (From 1 April 2018 to 20 January 2019) Ms. Hoang Thi Thu Huyen Chief Accountant (Appointed on 1 March 2019) Mr. Nguyen Hai Hung Chief Accountant (From 1 February 2018 to 28 February 2019) Statement of the Program Management Unit The Program Management Unit is responsible for preparing Financial Statements for the year ended 31 December 2018 ("the year") which give a true and fair view of: * the financial position of the Program; * the funds received and expended for the year; and * the funds withdrawn for the year. In preparing those Financial Statements, the Program Management Unit is required to: * select suitable accounting policies and then apply them consistently in accordance with the Credit Financing Agreement No. 5878-VN between Socialist Republic of Vietnam and International Development Association ("IDA") and the Operations Manual ("OM"); * make judgements and estimates that are reasonable and prudent; 6 state whether applicable accounting principles have been followed, subject to any material departures disclosed and explained in the financial statements; and * design and implement an effective internal control system for the purpose of properly preparing and presenting the financial statements so as to minimise errors and frauds. U The Program Management Unit confirms that they have complied with the above requirements in preparing the financial statements. The Program Management Unit is responsible for ensuring that proper accounting records are kept which disclose, with reasonable accuracy at any time, the financial position of the Program and to ensure that the accounting records comply with the accounting system as described in the Operations Manual. They are also responsible for 2 U Enhancing Teacher Education Program ("ETEP") Credit Financing Agreement No. 5878-VN For the year ended 31 December 2018 safeguarding the assets of the Program and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Approval of the financial statements We hereby approve the accompanying financial statements on pages 6 to 18 which give a true and fair view of the fund balance of the Program as at 31 December 2018 and the funds received and disbursed for the year ended 31 December 2018, in accordance with the accounting policies as described in Note 3 to the financial statements. On behalf of the Program Management Unit, U U Nguyen Xuan Thanh Program Director Hanoi, Vietnam 5 22 June 2019 U3 S 8 8 a 5 U U U U 5 U * GrantThornton Independent Auditors' Report Grant Thornton (Vietnam) Limited on the financial statements of 18m Floor Hoa Binh International Office Building the Enhancing Teacher Education Program Hoan nte tSc i Credit Financing Agreement No. 5878-VN Cau Giay District, Hanoi for the year ended 31 December 2018 Vietnam T +84 24 3850 1686 F +84 24 3850 1688 No. 17-11-275-2 To: Program Management Unit Enhancing Teacher Education Program Auditors' opinion We have audited the accompanying financial statements of the Enhancing Teacher Education Program financed under the International Development Association Credit Financing Agreement No. 5878-VN, prepared on 22 June 2019, which include Balance Sheet as at 31 December 2018, Statement of Sources and Uses of funds and Statement of withdrawals for the year ended 31 December 2018, and a summary of significant accounting policies and other explanatory notes (collectively referred to as "the Financial Statements") as set out on pages from 6 to 18. In our opinion, the accompanying financial statements give a true and fair view, in all material respects, of the financial position as at 31 December 2018 as well as of the funds received and expenditures of the Program for the year ended 31 December 2018, in accordance with the accounting policies described in Note 3 to the financial statements and the Operations Manual ("OM"). Other matter Our audit was made for the purpose of forming an opinion on the financial statements taken as a whole. The supplementary information presented by the Management in the Appendix on pages from 25 to 26 is for information purpose of the Donor and is not a required as part of the financial statements. Such information has been properly reconciled to the financial statements. Basis for Auditors' Opinion We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Program in accordance with the ethical requirements that are relevant to our audit of the financial statements in Vietnam, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Responsibility of the Program Management Unit for the financial statements The Program Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting policies as described in Note 3 to the financial statements and Operations Manual 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. 4 Grant Thornton (Vietnam) Limited grantthornton.com.vn Company code and tax: 0101476557. Registered in Vietnam. U 3 Auditors' Responsibility Our objectives are to obtain reasonable assurance about whether the financial statements of the Program as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: * Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. * Obtain an understanding of internal control relevant to the audit 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 Program's internal control. * Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. We communicate with the Management, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. GRANT THORNTON (VIETNAM) LIMITED Hanoi, Vietnam 22 June 2019 5 I Enhancing Teacher Education Program ("ETEP") Credit Financing Agreement No. 5878-VN U U Balance sheet as at 31 December 2018 U Notes 31 December 2018 31 December 2017 VND VND ASSETS Cash 4 57,093,092,982 42,041,502 8 Cash on hand 28,478,666 21,711,500 Cash at bank 17,603,504 20,330,002 Cash at State Treasury 57,047,010,812 Receivables 3,586,361,867 Other receivables 5 3,586,361,867 TOTAL ASSETS 60,679,454,849 42,041,502 RESOURCES Liabilities 32,227,624,239 6,754,328,461 Payables to suppliers 6 25,296,299,398 4,010,409,825 Taxes and amounts payable to State budget 7 24,583,520 196,766,924 Payables to staff - 2,052,326,689 Other payables 8 6,906,741,321 494,825,023 Funds 28,451,830,610 (6,712,286,959) Fund balance carried forward 28,451,830,610 (6 ,7 1 2 ,2 8 6 ,959 ) TOTAL. RESOURCES 60,679,454,849 42,041 ,5 02 Hanoi, Vietnam 22 June 2019 Nguyen Xudn Thanh Hoang Thi T Huyen Program Director Chief Accountant a ThUoe e u npgsbr 0t 8a merlpda s nnilsaeet Enhancing Teacher Education Program ("ETEP") Credit Financing Agreement No. 5878-VN U a Statement of Sources and Uses of a funds for the year ended 31 December 2018 I I U U For the year For the period Cumulative from ended from 31 May 2016 inception to Notes 31 December 2018 to 31 December 2017 31 December 2018 VND VND VND SOURCES 126,990,957,989 39,395,448,877 166,386,406,866 Loan fund 9 116,060,472,346 34,343,903,724 150,404,376,070 Counterpart fund 10 10,898,383,832 5,023,183,544 15,921,567,376 Other funds 11 32,101,811 28,361,609 60,463,420 USES OF FUNDS 12,13 91,826,840,420 46,107,735,836 137,934,576,256 1. Improved capacity of Lead Teacher Training Universities ("LTTU") to provide training and professional development for school teachers and education managers 88,094,675,334 43,632,694,102 131,727,369,436 1.1. Enhancing selected LTTUs' capacity in terms of teacher quality, facilities, equipment, administration capacity and coordination with general education management authorities and institutions 64,286,686,386 26,466,464,624 90,753,151,010 1.2. LTTUs organize continuous and school-based professional development for school teachers and education managers 596,700,000 - 596,700,000 1.3: Supporting LTTUs in developing the ICT-based open course ware for school teachers and education managers of general education schools 1,162,039,559 1,953,333,200 3,115,372,759 1.4: Assessing accurately the needs, quality and effectiveness of the professional development program for school teachers and education managers 1.5. Program implementation management and monitoring 22,049,249,389 15,212,896,278 37,262,145,667 2. Technical Assistance - Capacity building on Program implementation 3,732,165,086 2,475,041,734 6,207,206,820 Surplusl(Deficit) of sources over use of funds 35,164,117,569 (6,712,286,959) 28,451,830,610 Fund balance at the beginning of the year/period (6,712,286,959) Fund balance at the end of the year/period 28,451,830,610 (6,712,286,959) 28,451,830,610 U U a The notes set out on pages from 10 to 18 an integral part of these financial statements 7 Enhancing Teacher Education Program ("ETEP") Credit Financing Agreement No. 5878-VN U Statement of Sources and Uses of a funds (continued) for the year ended 31 December 2018 Presented by: 31 December 2018 31 December 2017 VND VND Cash 57,093,092,982 42,041,502 Other receivables 3,586,361,867 - Payables to suppliers (25,296,299,398) (4,010,409,825) Taxes and amounts payable to State budget (24,583,520) (196,766,924) Payables to staff (2,052,326,689) Other payables (6,906,741,321) (494,825,023) 28,451,830,610 (6,712,286,959) U Hanoi, Vietnam 22 Aune 2019 Nguyen Xu Thanh Hoang Th hu Huyen Program Director Chief Accountant T U U Th oe e u npgsfo 0t 8a itga ato hs iacasaeet Enhancing Teacher Education Program ("ETEP") Credit Financing Agreement No. 5878-VN U Statement of grant withdrawals for the year ended 31 December 2018 8 I Advance Withdrawal Application amount claimed Amount disbursed by IDA Difference USD Number Date SDR Date equivalent SDR SDR 01-AD 29 May 2018 2,778,000.00 8 June 2018 3,953,455.17 2,778,000.00 Hanoi, Vietnam 22 June 2019 UL Nguyen X nThanh Hoang Thi u Huyen Program Director Chief Accountant Thle notes set out on pages fromn 10 to 18 an integral pard of the,se fwnaicial statements 9 U Enhancing Teacher Education Program ("ETEP") Credit Financing Agreement No. 5878-VN U U a Notes to the financial statements for the year ended 31 December 2018 1. The Program's information The Enhancing Teacher Education Program ("the Program") operates under Credit Financing Agreement No. 5878-VN dated 6 February 2017 between the Socialist Republic of Vietnam and International Development Association ("IDA"). The objective of the Program is to strengthen teacher education institutions to enhance teacher and principal effectiveness through improved continuous professional development. The Program Management Unit ("PMU") is located at 5th Floor, Ta Quang Buu Library, Hanoi University of Science and Technology, 1 Dai Co Viet, Hai Ba Trung District, Hanoi, Vietnam. The Program has been implemented in 8 Lead Teacher Training Universities ("LTTUs") including: Thai Nguyen Pedagogical University, National Institute of Education Management, Hanoi Pedagogical University, Hanoi Pedagogical University 2, Hue Pedagogical University, Vinh University, Da Nang Pedagogical University and Ho Chi Minh City Pedagogical University. The Program commenced its execution since 31 May 2016 and to be completed on 30 June 2022. Under Credit Financing Agreement, IDA agreed a financing in an amount of SDR67,800,000 (equivalent to USD95 million). IDA's fund will be allocated to five Disbursement Linked Indicators ("DLI"), including: No. Disbursement Linked Indicators SDR USD equivalent 1 Institutional capacity of LTTUs to support the new Continuous Professional Development ("CPD") system for teachers and principals enhanced 19,260,000 27,000,000 2 Systems are in place to: (i) measure whether teachers and principals meet new professional standards; (ii) track and record evaluations of CPD programs; and (iii) record assessments of CPD needs of teachers and principals 12,860,000 18,000,000 . 3 Number of Core Teachers and Principal Advisors selected and trained to provide systematic face-to-face school-based CPD to teachers and principals 15,670,000 22,000,000 * 4 Number of Core Teachers and Principal Advisors providing school-based continuous professional development to teachers and principals 10,010,000 14,000,000 z 5 Number of teachers and principals who are satisfied with ICT-based interactive CPD services provided under the Program 10,000,000 14,000,000 67,800,000 95,000,000 The Program consists of the following activities, which constitute the Ministry of Education and Training's program to be carried out in the period between 2016 - 2021, as further elaborated in the National Teacher Education Program ("NTEP"): * Part 1: Developing capacity of teacher training institutions to enhance quality of trainings and continuous professional development for school teachers and principals. 1. Improved capacity of Lead Teacher Training Universities and central teacher management units to enhance teacher and principal education effectiveness. 2. Development of a teacher and principal training needs assessment system to inform CPD program development. 10 U Enhancing Teacher Education Program ("ETEP") Credit Financing Agreement No. 5878-VN I I 3. School-based and continuous professional development for teachers and principals. 4. Teachers and principals have access to CPD programs and resource through an Information and Communication Technologies-based system. 5. Implementation Support. * Part II: Technical Assistance 1. Strengthening the Ministry of Education and Training's institutional capacity for the implementation of the Program, in the strategic and crosscutting areas. 2. Carrying out a program of technical assistance activities designed to develop effective school-based CPD, innovative CPD programs, online platform to host TEMIS, LMS, professional profile of Core Teachers and Principal Advisors, relevant regulations and procedures, teacher and principal professional standards, training needs assessment methods, and training programs in selected subject areas. 3. Supporting the development of the Teacher Education Institutional Development Index to measure the effectiveness of LTTUs to provide quality and relevant services in a timely manner. 4. Carrying out third party verification of the achievement of agreed Disbursement Linked Results under the Program. 2. Fiscal year and accounting currency 2.1 Fiscal year The first financial year of the Program is from 31 May 2016 to 31 December 2017. Succeeding financial year will begin on 1 January and ends on 31 December. 2.2 Accounting currency The financial statements expressed in Vietnamese Dong ("VND"). 3. Accounting Policies 3.1 Basis of accounting These Financial Statements are prepared in accordance with requirements of the World Bank and Circular 107/2017fFT-BTC dated 10 October 2017 issued by the Ministry of Finance of Vietnam and International Public Sector Accounting Standards. The Financial Statements were prepared on cash modified basis, which is a comprehensive basis of accounting other than International Financial Reporting Standards. Financial Statements of whole Program are consolidated based on those of PMU and 8 LTTUs. 3.2 Foreign exchange Transactions arising in currencies other than the reporting currency of VND are translated at the prevailing exchange rates at transaction dates. Foreign exchange differences are not cash flows. However, the effect of exchange rate changes on cash and cash equivalents is reported separately in the statement of sources and uses of funds in order to reconcile fund balances at the beginning and the end of the period. 3.3 Recognition of funds and expenditures Program funds and expenditures are recognised on modified cash basis. - IDA funds: IDA funds are transferred to the designated account of Ministry of Finance at the Transaction Office of the State Bank of Vietnam and converted into VND for distribution to the Program Implementation Units. IDA funds are recognised when receiving money which transferred from Ministry of Finance into account of the Program Management Unit at the Vietnam State Treasury. - Counterpart fund: Fund is recognised when direct payment from Treasury to suppliers. - Expenditures are recognised when incurred. Enhancing Teacher Education Program ("ETEP" Credit Financing Agreement No. 5878-VN 4. Cash 31 December 2018 31 December 2017 VND VND Cash on hand Program Management Unit 28,478,666 21,711,500 8 Cash at bank Program Management Unit 17,603,504 20,330,002 Cash at State Treasury Program Management Unit 19,045,972,578 - Thai Nguyen Pedagogical University 5,163,590,824 - National Institute of Education Management 5,098,255,000 - Hanoi Pedagogical University 5,023,589,250 - Hue Pedagogical University 2,163,095,350 - Vinh University 10,417,195,000 - Da Nang Pedagogical University 2,459,640,860 - Ho Chi Minh City Pedagogical University 7,675,671,950 - 57,047,010,812 - 57,093,092,982 42,041,502 5. Other receivables 31 December 2018 31 December 2017 VND VND Advance amount to staffs to implement the Program: Program Management Unit 305,649,367 Hanoi Pedagogical University 3,280,712,500 - 3,586,361,867 6. Payables to suppliers 31 December 2018 31 December 2017 VND VND Program Management Unit 4,327,713,855 4,010,409,825 Thai Nguyen Pedagogical University 4,858,436,800 - National Institute of Education Management 1,818,294,700 - Hanoi Pedagogical University 2,638,447,300 - Hue Pedagogical University 1,560,683,918 - Vinh University 8,673,372,900 Da Nang Pedagogical University 1,419,349,925 - 25,296,299,398 4,010,409,825 Included: 31 December 2018 31 December 2017 VND VND Hoa Binh International Tour Co., Ltd 2,845,050,000 - Software Trading Solution JSC - 643,370,000 Viet Nhat Electronics Co., Ltd - 1,223,422,000 Trade Union Guest House - 1,200,850,000 Other suppliers 22,451,249,398 942,767,825 25,296,299,398 4,010,409,825 12 U Enhancing Teacher Education Program ("ETEP") Credit Financing Agreement No. 5878-VN 7. Taxes and amounts payable to State budget 31 December 2018 31 December 2017 VND VND Personal income tax: Program Management Unit 17,400,000 196,766,924 Thai Nguyen Pedagogical University 7,183,520 - 24,583,520 196,766,924 8. Other payables 31 December 2018 31 December 2017 VND VND Advance amount from staffs of PMU to implement the Program 596,937,631 472,123,903 Advance amount from LTTU to implement the Program (*) 6,286,486,355 - Others 23,317,335 22,701,120 6,906,741,321 494,825,023 (*) Included: 31 December 2018 31 December 2017 VND VND National Institute of Education Management 2,692,253,230 - Hue Pedagogical University 228,889,432 - Vinh University 613,296,000 - Da Nang Pedagogical University 621,350,168 - Ho Chi Minh City Pedagogical University 2,130,697,525 - 6,286,486,355 - 9. Loan fund For the period Cumulative Year ended from 31 May 2016 from inception to 31 December 2018 to 31 December 2017 31 December 2018 VND VND VND Advance from IDA (i) 89,834,361,828 - 89,834,361,828 Advance from Government (ii) 26,226,110,518 34,343,903,724 60,570,014,242 116,060,472,346 34,343,903,724 150,404,376,070 (i) Detail of advance from IDA: Cumulative Year ended from inception to 31 December 2018 31 December 2018 Equivalent to Equivalent to Equivalent to Equivalent to SDR USD VND SDR USD VND Advance 2,778,000 3,953,455.17 89,834,361,828 2,778,000 3,953,455.17 89,834,361,828 Represented amount advanced from IDA disbursed on 8 June 2018 via the designated account of Ministry of Finance at the Transaction Office of the State Bank of Vietnam according to Withdrawal Application No.1 dated 29 May 2018. This advance has been converted by Ministry of Finance into VND on 8 June 2018 at the exchange rate of VND22,723/USD1 and transferred to account No. 3741.0.3026093.92999 of the Program Management Unit at the Vietnam State Treasury. Total amount received by the Program Management Unit into the account at the Vietnam State Treasury is VND89,834,361,828. U 13 Enhancing Teacher Education Program ("ETEP") Credit Financing Agreement No. 5878-VN (ii) Detail of advance from Government: For the period Cumulative Year ended from 31 May 2016 from inception to 31 December 2018 to 31 December 2017 31 December 2018 VND VND VND Program Management Unit 25,108,373,518 2,630,357,630 27,738,731,148 Thai Nguyen Pedagogical University - 4,974,060,000 4,974,060,000 National Institute of Education Management - 3,418,972,944 3,418,972,944 Hanoi Pedagogical University - 4,460,993,200 4,460,993,200 Hanoi Pedagogical University 2 133,080,000 4,220,220,000 4,353,300,000 Hue Pedagogical University 984,657,000 2,935,563,000 3,920,220,000 Vinh University - 4,150,000,000 4,150,000,000 Da Nang Pedagogical University - 2,933,516,950 2,933,516,950 Ho Chi Minh City Pedagogical University - 4,620,220,000 4,620,220,000 26,226,110,518 34,343,903,724 60,570,014,242 Represented amount advanced from State budget to finance the Program. The advance will be reimbursed to State budget when receiving funds from IDA. 10. Counterpart fund For the period Cumulative Year ended from 31 May 2016 from inception to 31 December 2018 to 31 December 2017 31 December 2018 VND VND VND Program Management Unit 3,012,544,572 3,980,768,704 6,993,313,276 Thai Nguyen Pedagogical University 1,030,283,650 50,000,000 1,080,283,650 National Institute of Education Management 938,189,847 187,239,150 1,125,428,997 Hanoi Pedagogical University 2,970,108,888 58,931,000 3,029,039,888 Hanoi Pedagogical University 2 - 54,975,000 54,975,000 Hue Pedagogical University 722,455,000 50,000,000 772,455,000 Vinh University 1,209,013,660 251,839,000 1,460,852,660 Da Nang Pedagogical University 329,376,200 62,231,000 391,607,200 Ho Chi Minh City Pedagogical University 686,412,015 327,199,690 1,013,611,705 10,898,383,832 5,023,183,544 15,921,567,376 Y 11. Other funds Other funds represent income from selling bidding documents in PMU for the period from 31 May 2016 to 31 December 2018. 14 agspasm assaweessenWu NamRseeWSAMW Enhancing Teacher Education Program ("ETEP") Credit Financing Agreement No. 5878-VN 12. Uses of funds by budget line For the period Cumulative Year ended from 31 May 2016 from inception to 31 December 2018 to 31 December 2017 31 December 2018 VND VND VND Loan fund 81,244,156,541 39,968,563,385 121,212,719,926 Counterpart fund 10,569,246,911 6,125,313,951 16,694,560,862 Other funds 13,436,968 13,858,500 27,295,468 91,826,840,420 46,107,735,836 137,934,576,256 Disbursements by budget line: Year ended 31 December 2018 Cumulative from inception to 31 December 2018 Items Loan fund Counterpart fund Other funds Total Loan fund Counterpart fund Other funds Total VND VND VND VND VND VND VND VND 1. Improved capacity of Lead Teacher Training Universities ("LTTU") to provide training and professional development for school teachers and education managers 77,511,991,465 10,569,246,911 13,436,968 88,094,675,334 115,005,513,106 16,694,560,862 27,295,468 131,727,369,436 1.1. Enhancing selected LTTUs' capacity in terms of teacher quality, facilities, equipment, administration capacity and coordination with general education management authorities and institutions. 59,117,263,269 5,169,423,117 - 64,286,686,386 85,538,250,993 5,214,900,017 - 90,753,151,010 1.2. LTTUs organize continuous and school-based professional development for school teachers and education managers 596,700,000 - - 596,700,000 596,700,000 - - 596,700,000 1.3: Supporting LTTUs in developing the ICT-based open course ware for school teachers and education managers of general education schools 1,150,252,725 11,786,834 - 1,162,039,559 3,103,585,925 11,786,834 - 3,115,372,759 1.4: Assessing accurately the needs, quality and effectiveness of the professional development program for school teachers and education managers - - 1.5. Program implementation management and monitoring 16,647,775,461 5,388,036,960 13,436,968 22,049,249,389 25,766,976,188 11,467,874,011 27,295,468 37,262,145,667 2. Technical Assistance - Capacity building on Program implementation 3,732,165,086 - - 3,732,165,086 6,207,206,820 - - 6,207,206,820 Total 81,244,156,541 10,569,246,911 13,436,968 91,826,840,420 121,212,719,926 16,694.560,862 27,295,468 137,934,576,256 15 Wmmmu..m mm.mmuss.WWmWesWmuummWu.aW Enhancing Teacher Education Program ("ETEP") Credit Financing Agreement No. 5878-VN 13. Uses of funds by categories in PMU and LTTU and comparison with budget for the year/period For the year ended 31 December 2018 Thai Nguyen National Institute Hanoi Hanoi Hue Da Nang Ho Chi Minh City Pedagogical of Education Pedagogical Pedagogical Pedagogical Vinh Pedagogical Pedagogical Items PMU University Management University University 2 University University University University Total VND VND VND VND VND VND VND VND VND VND 1. Improved capacity of Lead Teacher Training Universities ("LTTU") to provide training and professional development for school teachers and education managers 22,738,205,140 9,275,563,146 5,068,232,777 7,421,384,688 7,929,390,000 11,201,964,000 11,414,737,560 6,665,647,933 6,379,550,090 88,094,675,334 1.1. Enhancing selected LTTUs' capacity in terms of teacher quality, facilities, equipment, administration capacity and coordination with general education management authorities and institutions. 10,764,385,950 8,589,693,896 3,054,957,010 4,543,123,937 6,718,540,000 9,814,908,000 9,776,723,900 6,142,086,7931 4,882,266,900[ 64,286,636,386 1.2. LTTUs organize continuous and school-based professional development for school teachers and 'education managers - - 296,700,000 - 300,000,000 -1 T - 596,700,000 1.3: Supporting LTTUs in developing the ICT-based open course ware for school teachers and education managers of general education schools - - 396,035,000 510,000,000 - - 10,000,000 - 246,004,559 1,162,039,559 1.4: Assessing accurately the needs, quality and effectiveness of the professional development program for school teachers and education managers - - - - - - - - 1.5. Program implementation management and monitoring 11,973,819,190 685,869,250 1,320,540,767 2,368,260,751 910,850,000 1,387,056,000 1,628,013,660 523,561,140 1,251,278,631 22,049,249,389 2. Technical Assistance - Capacity building on Program implementation 3,316,165,086 - 416,000,000 - - - - - 3,732,165,086 Total 26,054,370,226 9,275,563,146 5,484,232,777 7,421,384,688 7,929,390,000 11,201,964,000 11,414,737,560 6,665,647,933 6,379,550,090 91,826,840,420 Budget for the year 44,108,000,000 12,921,000,000 7,965,000,000 20,505,948,000 12,395,080,000 14,412,191,000 16,380,000,000 9,456,950,000 16,584,150,000 154,728,319,000 Variance 18,053,629,774 3,645,436,854 2,480,767,223 13,084,563,312 4,465,690,000 3,210,227,000j 4,965,262,440 2,791,302,067 10,204,599,910 62,901,478,580 Disbursement rate compared to budget 59% 72% 69% 36% 64% 78% 70% 70% 38% 59% 16 WWasWaWWWW Wne wWWmmamaammmmn eusm Enhancing Teacher Education Program ("ETEP") Credit Financing Agreement No. 5878-VN 13. Uses of funds by categories in PMU and LTTU and comparison with budget for the year/period (continued) For the period from 31 May 2016 to 31 December 2017 Thai Nguyen National Institute Hanoi Hanoi Hue Da Nang Ho Chi Minh City Pedagogical of Education Pedagogical Pedagogical Pedagogical Vinh Pedagogical Pedagogical Items PMU University Management University University 2 University University University University Total VND VND VND VND VND VND VND VND VND VND 1. Improved capacity of Lead Teacher Training Universities ("LTTU") to provide training and professional development for school teachers and education managers 10,876,733,168 5,024,060,000 3,606,212,094 4,519,924,200 4,275,195,000 2,985,563,000 4,401,839,000 2,995,747,950 4,947,419,690 43,632,694,102 1.1. Enhancing selected LTTUs' capacity in terms of teacher quality, facilities, equipment, administration capacity and coordination with general education management authorities and institutions. - 4,204,060,000 3,187,127,088 4,077,660,0001 3,340,220,000 2,228,406,000 3,250,220,000 2,069,397,636 4,109,373,900 26,466,484,624 1.2. LTTUs organize continuous and school-based professional development for school teachers and education managers - - - - - . . . 1.3: Supporting LTTUs in developing the ICT-based open course ware for school teachers and education managers of general education schools - 440,000,000- 133,333,200 500,000,000 - 520,000,000 280,000,000 80,000,000 1,953,333,200 1.4: Assessing accurately the needs, quality and effectiveness of the professional development program for school teachers and education managers - - - - - 1.5. Program implementation management and monitoring 10,876,733,168 380,000,000 419,085,006 308,931,000 434,975,000 757,157,000 631,619,000 646,350,314 758,045,790 15,212,896,278 2. Technical Assistance - Capacity building on Program implementation 2,475,041,734 - - - - - - - 2,475,041,734 Total 13,351,774,902 5,024,060,000 3,606,212,094 4,519,924,200 4,275,195,000 2,985,563,000 4,401,839,000 2,995,747,950 4,947,419,690 46,107,735,836 Budget for the year 13,629,600,000 5,024,060,000 4,971,299,150 4,692,991,000 4,408,275,000 3,970,220,000 4,802,059,000 4,552,531,000 4,987,419,690 51,038,454,840 Variance 277,825,098 - 1,365,087,056 173,066,800 133,080,000 984,657,000 400,220,000 1,556,783,050 40,000,000 4,930,719,004 Disbursement rate compared to budget 98% 100% 73% 96% 97% 75% 92% 66% 99% 90% 17 Enhancing Teacher Education Program ("ETEP") Credit Financing Agreement No. 5878-VN 3 U g 14. Approval for issuance of the financial statements The financial statements were approved by the Program Management Unit and authorised for issue. Hanoi, Vietnam 22 June 2019 NgUyen LXuan hanh Hoang Thi TAu Huyen Program Director Chief Accountant 1, 8 U U U U I I I U 8 U U1 U Enhancing Teacher Education Program ("ETEP") Credit Financing Agreement No. 5878-VN 3 Part * Auditors' Report on the Comp iance 1 1U U 8 II I I1 B GrantThornton U a Independent Auditors' Report on compliance of the Enhancing Teacher Education Program ("ETEP") Credit Financing Agreement No. 5878-VN * For the year ended 31 December 2018 Grant Thornton (Vietnam) Limited 180 Floor Hoa Binh International Office Building 106 Hoang Quoc Viet Street Cau Giay District, Hanoi Vietnam T +84 24 3850 1686 F +84 24 3850 1688 To: The Program Management Unit The Enhancing Teacher Education Program We have audited the balance sheet as at 31 December 2018 of the Enhancing Teacher Education Program under Credit Financing Agreement No. 5878-VN between the Socialist Republic of Vietnam and International Development Association ("World Bank") (the "Program"), the statement of sources and uses of funds for the year ended 31 December 2018 and the notes thereto (collectively referred to as "Financial Statements"), and have issued our report thereon dated 22 June 2019. We conducted our audit in accordance with International Standards on Auditing. The Program Management Unit's Responsibility The Program Management Unit is responsible for complying with Applicable Laws, Regulations and the Procurement Procedures and other Provisions of the Credit Financing Agreement and other Guidance from the World Bank. Auditors' Responsibility Our responsibility is to express an opinion on the Program's compliance with the requirements, based on our procedures. We conducted our engagement in accordance with the International Standard on Assurance Engagement 3000, "Assurance Engagements other than Audits or Reviews of Historical Financial Information", issued by the International Auditing and Assurance Standards Board. This standard requires that we comply with ethical requirements and plan and perform our procedures to obtain reasonable assurance about whether, in all material respects, the Program has complied with the requirements. An assurance engagement to report on the compliance with regulatory and contractual requirements at a Program involves performing procedures to obtain evidence about whether the Program's activities are free of material non- compliance with the requirements. The procedures selected depend on the auditor's judgment, including the assessment of risks that the Program does not comply with the requirements and whether such non-compliance could have a direct and material effect on the Program's Financial Statements. Our procedures included testing the compliance with the requirements that we consider necessary to provide reasonable assurance that the requirements are complied by the Program. We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. U Grant Thornton (Vietnanm) Lim ed grantthornton.com.y(T Company code and tax. 0101476557 Registered in Vietnam. Auditors' opinion In our opinion, the Program was, in all material respects, in compliance with Applicable Laws, Regulations and the Procurement Procedures and other Provisions of Credit Financing Agreement No. 5878-VN and other Guidances from the World Bank that could have a direct and material financial effect on the Program's Financial Statements for the year ended 31 December 2018. This report is intended for the information of PMU of the Program and the International Development Association. GRANT THORNTON (VIETNAM) LIMITED Hanoi, Vietnam 22 June 2019 i 5 U U I 8 Enhancing Teacher Education Program ("ETEP") Credit Financing Agreement No. 5878-VN U U U U U U Part Auditors' Report on the * Internal Control U 8 U U U U £ U a £ U U 22 5 s 0 GrantThornton * Independent Auditors' Report on Internal Control over financial reporting the Enhancing Teacher Education Program ("ETEP") Credit Financing Agreement No. 5878-VN Grant Thornton (Vietnam) Limited For the year ended 31 December 2018 18 Floor Hoa Binh International Office Building 106 Hoang Quoc Viet Street Cau Giay District, Hanoi Vietnam T +84 24 3850 1686 F +84 24 3850 1688 To The Program Management Unit The Enhancing Teacher Education Program We have audited the balance sheet as at 31 December 2018 of the Enhancing Teacher Education Program under Credit Financing Agreement No. 5878-VN between the Socialist Republic of Vietnam and International Development Association ("World Bank") ("the Program"), the statement of sources and uses of funds for the year ended 31 December 2018 and the notes thereto (collectively referred to as "Financial Statements"), and have issued our report thereon dated 22 June 2019. We conducted our audit in accordance with International Standards on Auditing. * The Program Management Unit's Responsibility The Program Management is responsible for designing and maintaining effective internal control over compliance with requirements that could have a direct and material financial effect on the financial statements as well as over financial reporting for the purpose of properly preparing and presenting the financial statements so as to minimise errors and frauds; and take responsibility for its assertions as to the effectiveness of such internal control. Auditors' Responsibility Our responsibility is to express an opinion on the Program's Financial Statements and on the design and operation of controls over financial reporting, based on our procedures. We conducted our engagement in accordance with the International Standards on Assurance Engagement 3000, "Assurance Engagements other than Audits or Reviews of Historical Financial Information", issued by the International Auditing and Assurance Standards Board. That standard requires that we comply with ethical requirements and plan and perform our procedures to obtain reasonable assurance about whether, in all material respects, the Program's Financial Statements are fairly presented and the controls are suitably designed and operating effectively. An assurance engagement to report on the description, design and operating effectiveness of controls at a program involves performing procedures to obtain evidence about the disclosures in the program's description of its system and design and operating effectiveness of controls. The procedures selected depend on the auditor's judgment, including the assessment of risks that the Program's Financial Statements is not fairly presented, and that controls are not suitably designed or operating effectively. Our procedures included testing the operating effectiveness of those controls that we consider necessary to provide reasonable assurance that the control objectives were achieved. We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Grant Thornton (Vietnam) Limited grantthornton.comye Company code and tax: 0101476557. Registered in Vietnam. U U U Auditors' opinion I In our opinion, in all material respects, the Program's internal controls over financial reporting were suitably designed throughout the year ended 31 December 2018 and the controls tested, which were those necessary to provide reasonable assurance that the control objectives were achieved, operated effectively throughout the year. U This report is intended for the information of PMU of the Program and the International Development Association. U GRANT THORNTON (VIETNAM) LIMITED U * I Hanoi, Vietnam * 22 June 2019 B U U I B U U U U U I U U U U I I U U U U B U Enhancing Teacher Education Program ("ETEP") Credit Financing Agreement No. 5878-VN Appendix: Comparison between actual expenditures and budget For the year ended 31 December 2018 Thai Nguyen National Institute Hanoi Hanoi Hue Da Nang Ho Chi Minh City Pedagogical of Education Pedagogical Pedagogical Pedagogical Vinh Pedagogical Pedagogical Actual expenditures PMU University Management University University 2 University University University University Total VND VND VVND NDVND VND VND VND VND VND 1. Improved capacity of Lead Teacher Training Universities ("LTTU") to provide training and professional development for school teachers and education managers 22,738,208,140 9,275,563,146 6,068,232,777 7,421,384,688 7,929,390,000 11,201,964,000 11,414,737,560 6,666,647,933 6,379,550,090 88,094,675,334 1.1. Enhancing selected LTTUs' capacity in terms of teacher quality, facilities, equipment, administration capacity and coordination with general education management authorities and institutions. 10,764,385,950 8,589,693,896 3,054,957,010 4,543,123,937 6,718,540,000 9,814,908,000 9,776,723,900 6,142,086,793 4,882,266,90C 64,286,686,386 1.2. LTTUs organize continuous and school- based professional development for school teachers and education managers - - 296,700,000 - 300,000,000 - - - - 596,700,000 11.3: SupporTing LTTUs in developing the ICT- 4 based open course ware for school teacners and education managers of general education schools - - 396,035,000 510,000,000 - - 10,000,000 - 246,004,559 1,162,039,559 1.4: Assessing accurately the needs, quality and effectiveness of the professional development program for school teachers and education managers - - - -- - - - - - 1.5. Program implementation management and monitoring 11,973,819,190 685,869,250 1,320,540,767 2,368,260,751 910,850,000 1,387,056,000 1,628,013,660 523,561,140 1,251,278,631 22,049,249,389 2. Technical Assistance - Capacity building on Program Implementation 3,316,165,086 - 416,000,000 - - - - - - 3,732,165,086 Total 26,054,370,226 9,275,563,146 5,484,232,777 7,421,384,688 7,929,390,000 11,201,964,000 11,414,737,560 6,665,647,933 6,379,550,090 91,826,840,420 Budget for the year 44,108,000,000 12,921,000,000 7,965,000,000 20,505,948,000 12,395,080,000 14,412,191,000 16,380,000,000 9,456,950,000 16,584,150,000 154,728,319,000 Variance 18,053,629,774 3,645,436,854 2,480,767,223 13,084,663,312 4,465,690,000 3,210,227,000 4,965,262,440 2,791,302,067 10,204,599,910 62,901,478,580 Disbursement rate compared to budget 59% 72% 69% 36% 64% 78% 70% 70% 38% 59% 25 anWWWW mWWmaaamama mana aa mmnage Enhancing Teacher Education Program ("ETEP") Credit Financing Agreement No. 5878-VN Appendix: Comparison between actual expenditures and budget (continued) For the period from 31 May 2016 to 31 December 2017 Thai Nguyen National Institute Hanoi Hanoi Hue Da Nang Ho Chi Minh City Pedagogical of Education Pedagogical Pedagogical Pedagogical Vinh Pedagogical Pedagogical Actual expenditures PMU University Management University University 2 University University University University Total VND VND VND VND VND VND VND VND VND VND 1. Improved capacity of Lead Teacher Training Universities ("LTTU") to provide training and professional development for school teachers and education managers 10,876,733,168 6,024,060,000 3,606,212,094 4,619,924,200 4,276,195,000 2,986,563,000 4,401,839,000 2,995,747,960 4,947,419,690 43,632,694,102 1.1. Enhancing selected LTTUs' capacity in terms of teacher quality, facilities, equipment, administration capacity and coordination with general education management authorities and institutions. - 4,204,060,000 3,187,127,088 4,077,660,000 3,340,220,000 2,228,406,000 3,250,220,000 2,069,397,636 4,109,373,900 26,466,464,624 1.2. LTTUs organize continuous and school- based professional development for school teachers and education managers - - - - . . . . 1.3: Supporting LTTUs in developing the ICT- based open course ware for school teachers and education managers of general education schools - 440,000,000- 133,333,200 500,000,000 - 520,000,000 280,000,000 80,000,000 1,963,333,200 1.4: Assessing accurately the needs, quality and effectiveness of the professional development program for school teachers and education managers - - - - - - 1.5. Program implementation management and monitoring 10,876,733,168 380,000,000 419,085,006 308,931,000 434,975,000 757,157,000 631,619,000 646,350,314 758,045,790 15,212,896,278 2. Technical Assistance - Capacity building on Program implementation 2,475,041,734 - - - - - . - - 2,475,041,734 Total 13,361,774,902 6,024,060,000 3,606,212,094 4,519,924,200 4,275,196,000 2,986,563,000 4,401,839,000 2,995,747,960 4,947,419,690 46,107,736,836 Budget for the year 13,629,600,000 6,024,060,000 4,971,299,150 4,692,991,000 4,408,278,000 3,970,220,000 4,802,069,000 4,552,631,000 4,987,419,690 51,038,454,840 Variance 277,825,098 - 1,365,087,056 173,066,800 133,080,000 984,667,000 400,220,000 1,556,783,050 40,000,000 4,930,719,004 Disbursement rate compared to budget 98% 100% 73% 96% 97% 75% 92% 66% 99% 90% 26