Report No: FIN-2019-17(E) 20 February 2019 ENHANCING EDUCATION DEVELOPMENT PROJECT MINISTRY OF EDUCATION FOR THE PERIOD FROM 1 JANUARY 2018 TO 31 OCTOBER 2018 TABLE OF CONTENTS Auditor General's Repon.................. Financial Statement Statement of Receipts and Paynents 3 Notes to the financial statemen[........................... 4 €u'"/. ?1. tu0tI0R 0 t,,z..ct. 0 itRlus 0mt[[ .0. tt+ AI]DITOR GEI{ERAL'S OFFICE AT]DITOR GENERAL'S REPORT TO TIIE MINISTRY 8[' EDUCATION ON THE FINANCIAL STATEMENT OF ENHANCING EDUCATION DEVELOPMENT PROJECT FOR THE PERIOD FROM 1 JANUARY 2OI8 TO 3I OCTOBER 2OI8 Opinion We have audited the accompanying financial statement; Statement of Receipts and Paynents for the period from 1 January 2018 to 31 October 2018 and notes to this statement, which includes a summary ofsignificant accounting policies and other explanatory information set out in pages 3 to 9, of Enhancing Education Development Project (EEDP) financed by World Bank/lntemational Development Association Financing Agreement (Grant No. H841-MV) as of 17 June 2013. In our opinion, the accompanying financial statements present fairly, in all material respects, the cash receipts and cash payments for the period from I January 2018 to 31 October 2018 and cash balances as at the period then ended in accordance with lntemational Public Sector Accounting Standard: Financial Reporting under the Cash Basis ofAccounting. In addition, we can provide assurance that: (a) The funds provided under the Grant have been utilised for the purposes for which they were provided; and (b) The Procurement guidelines of the World Bank have been complied with in the procurement ofgoods and services under the project. Basis for opinion We conducted our audit in accordance with Intemational 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 Management in accordance with the Intemational Ethics Standards Board for Accountants' Code of Ethics for Professional Accountants (IESBA Code). We have fulfilled our other ethical responsibilities in accordance with the IESB Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Responsibilities of management and those charged with governance for the financial statements The Management is responsible for the preparation and fair presentation of this financial s in accordance with the lntemational Public Sector Accounting Standard (IPSAS): Auditor General's Office I Ghaazee Building I Ameer Ahmed Magu I Male', Republic of Maldives 0'llt Phone +960 332 3939 lFax; +960 331 64301 Email: inti) .r audit.iro!.m\ l Page 1 of 9 Reporting under the Cash Basis of Accounting. This responsibility includes: designing, implesmenting and maintaining intemal controls relevant to the preparation and fair presentation of financial statement that are free from material misstatement, whether due to fraud or error; selecting and appllng appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances. Those charged with govemance ofthe Project are responsible for overseeing the project's financial reporting process. Auditors' responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the furancial statements as a whole are free from material misstatement, whether due to fraud or eror, 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 ofusers taken on the basis ofthese frnancial statements. As part of an audit in accordance with ISAs, we exercise professional judgrnent and maintain professional skepticism throughout the audit. We also: Identily and assess the risks of material misstatement ofthe financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is suffrcient 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 intemal control. o Obtain an understanding of intemal 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 ofthe project's intemal control. . Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. . Evaluate the overall presentation, structure and content ofthe financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with govemance of the project regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in intemal control that we identify during our audit. 20th February 2019 +--k4 Hassan Ziyath Auditor General Auditor General's Office I Ghaazee Building I Ameer Ahmcd Magu I Male', Republic of Maldives Phone +960 332 3939 lFax: +960 331 64301 Email: inlbta audit.gor.mr I Page 2 of 9 ENHANCING EDUCATION DEVELOPMf,NT PROJECT MINISTRY OF EDUCATION FOR THE PERIOD I JAIiUARY 2OI8 TO 3I OCTOBER 2OI8 STATEMENT OF RECEIPTS AND PAYMENTS FOR THE PERIOD I JANUARY 2OI8 TO 3I OCTOBER 2OI8 For the period For the period I Jan 2018 to 3l Oct 2018 I Jan 2017 to 3l Dec 2017 Note IDA GOM TOTAL IDA GOM TOTAL USD USD USD USD USD USD RECEIPTS Funds Received l 1.837,264 119.81i6 1.987.150 2.638.804 221.503 2.860.307 Total Receipts t,837,264 t49,886 1,987,150 2,638,804 221.503 2,E60J07 PAYMENTS National Level Education Program Development -l 1.749.891 62.508 t.812.399 2.579.680 t33.684 2.7t3.361 School Level Education Program ) Development 74.135 74.135 208.528 9.136 217.664 Project Coordination, Monitoring and Evaluation, and 6 203.700 8?.040 290.140 158.748 50.917 209.665 Program Development Total Payments 2,027,126 149,548 2,177,274 2,946,957 193,736 3,r40.692 Increase / (Decrease) in Cash 090,4621 138 (r90.r24) (308,r s2) 27,767 (280,.1Es) Opening Cash Balance t91.332 27.966 2r9.298 499.485 202 499,686 Increase / (Decrease) in Cash ( r90.462) 338 ( 190.r24) (308.t52) 27.'t67 (280.385) ,7 Exchange Gain/ (Loss) t8 l8 l2t t2\ Closing Cash Balance 8 871 28)22 29.193 l9t,3J2 27.96 219.29a The statement of Receipts and Payments was approved by the coordination support unit (CSU) on 6rh February 2019. Signed for and on behalfofthe CSU: Ms. Waleeda Mohamed Mr. Mohamed Shiyaz (Project Coordinator) (Senior Accounts Oflicer) accounting policies and notes on pages 4 through 9 form an integral part ofthe financial oT , Ministry ofEducation, Ghaazee Building, Ground Floor, Ameeru Ahmed Magu, Male, Republic of Tel: + (960) 3341321, Fax: + (960) 33 t3749, www.eedp.moe.gov.mv Page 3 of 9 ENHANCING EDUCATION DEVELOPMENT PROJECT MINISTRY OF EDUCATION FOR THE PERIOD I JANUARY 2OI8 TO 31 OCTOBER 2Or8 NOTES TO THE FINANCIAL STATEMENT I. PRO.IECTI:{FORMATION Key Highlights Project Title: Enhancing Education Development project Start Date: I 7rh June 2013 Closing Date: 30t1, June 2018 Approved Budger: USD I t,000,000 Funded by: Intemational Development Association (lDA) and the Govemment of Maldives (GoM) IDA Contribution: SDR 6,700,000 (which is equivalent to USD 10,000,000) Government Contribution: USD 1,000,000 l.l Ohjcctives Project Development Objectives The Project Development Objective is to enhance and strengthen strategic dimensions of education access and quality. 1,2 Project Beneficiaries The direct beneficiaries ofthe project will be about 74,000 school children, 5,000 school teachers, 220 principals and more than 800 educational managers and administrators. The indirect project beneficiaries will be the school communities of around 220 schools; the households of the 74,000 school children; the contractors of school infrastructure and suppliers ofeducation equipment; and the academics and researchers who will receive support for research and evaluation activities. ln the long-term, as the quality of school-completers rise, the employers and the higher education and training sector will also benefit. 1.3 Project Components The project is broadly organised under three components: . Component One: National Level Education program l)evelopment - National Assessments of Leaming outcomes for poricy and program Development - Management and Leadership Development ofstaffin the Education Sector - Leaming Environment Enrichment of Secondarv Schools Component Two: School Level Education Program l)evelopment School-Based Management (SBM) Modemising Quality Assurance for School lmprovement Strengthening School-Based Teacher Professional Development School Quality Assurance and Teacher Development Awards (eATDA) Component Three: Project Coordination, Monitoring and Evaluation, and P m Development Education Strategy and Program Development { ot Project Coordination, Monitoring and Evaluation inistry ofEducation, Ghaazee Building. Cround Floor, Ameeru Ahmed Magu, Mald, Republic of Tel: + (960) 3341321. Fax: + (960) 3313749, www.eedp.moe.gov.mv Page 4 of 9 ENHANCING EDUCATION DEVELOPMENT PROJECT MINISTRY OF EDUCATION FOR THE PERIOD I JAIIUARY 2OI8 TO 3I OCTOBER 2OI8 1.4 Project Financing The project is financed by the Intemational Development Association (lDA). Article 2.1 of the Financing Agreement signed on l7'h June 2013 between the Govemment of Maldives and the lntemational Development Association (lDA) states that a grant in an amount equivalent to Six Million Seven hundred thousand Special Drawing Rights (SDR 6,700,000) equivalent to USD 10,000,000 is given to assist in financing the project. Also, the Government of Maldives agreed to contribute USD 1,000,000 to the project. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 2.1 Basis of preparation The Statement of Receipts and Payments are prepared in accordance with Intemational public Sector Accounting Standard: Fincmcial Reporting under the Cash-Basis of Accounting. 2,2 Recognition ofReceipts and Payments Receipts and payments are accounted for on cash basis. Receipts are recognised when the Maldives Monetary Authority (MMA) receives the funds from IDA to the bank account maintained for the project with it. This account is maintained in United States Dollars (USD). Payments are recognised at the time of outflow ofcash either from the bank account, or from the cash account maintained for cash payments. Financial contributions to the project from the Govemment of Maldives are recognised when cash outflow occurs from the public Bank Account (PBA) in respect of the project. Such outflows (payments) are also recognised as receipts in the financial statement. 2,3 Presentation Currency The Statement of Receipts and Payments has been presented using the United States Dollars (USD). All the figures have been rounded to the nearest Dollar. 2.4 Foreign Currency Translation Receipts and payments in currencies other than the reporting curency - USD) - are converted at the mid- exchange rate (MMA's published exchange rate less 0.05) existing between the transaction currency and USD at the time of the receipt/payment. Cash balances in currencies other than USD as at the end of the reporting period are shown in the financial statement at the exchange rate that was prevailing at the last day ofthe reporting period. And resulting exchange gain/loss (ifany) is recognised in the financial statements. 2,5 Reporting Period Financial statement is generally prepared for one year (calendar year) with the exception of commencement and,/or closure ofthe project. Whilst at commencement the financial statement generally covers a period shorter than one year, a period longer than one year is covered for the closure ofthe project. Period for which financial statement is prepared are disclosed on the face ofthe financial statement. 2.6 Comparatives addition to the fi gures for the period I January 201 8 to 3 I October 201 8, the Financial Statem r,o{r& ttr of s for the period I January 2017 to 31 December 2017 as well E U, Mi nistry ofEducation, Ghaazee Building cround Floor, Ameeru Ahmed Magu, Mald, Republic of Maldives Tel: + (960) 3341321, Fax: + (960) 3313749, www.eedp.moe.gov.mv Page 5 of 9 ENHANCING f, DUCATION DEVELOPMtrNT PROJECT MINISTRY OF EDUCATION FOR THtr PERIOD I JANUARY 2OI8 TO 3I OCTOBER 2OI8 3. FUNDS RECf,IVET) For the period For the p€riod I Jan 20lE to 3l Oct 2018 I Jan 2017 to 3l Dec 2017 IDA GOM TOTAL IDA GOM TOTAL USD USD USD USD USD USD Fund Received Disbursement (Receipts) from t.837.264 1.837.264 2.638.804 2,638,804 World Bank/lDA Funds Allocated by the Government of Maldives t49.886 t49.8 It6 221,503 221,503 Total t,E37,264 t49,886 1,987,t50 2,638,804 221,503 2,860,307 4. NATIONAL LIVEL IDUCATTON DEVELOPMENT For th€ period For the period I Jan 2018 to 3l Oct 20lE I Jan 2017 to 3t Dec20l7 IDA COM TOTAL IDA GOM TOTAL USD U ST) usD USD USD USD National Assessments of Leaming Out- comes for Policy and Program 28,371 28,3',7 | 73.851 73.85 t Development Management and Leadership Development of Staffin the Education 460.642 460,642 74.670 254 7 4.924 Sector Leaming Enyironment Enrichment of Secondary Schools 1.260,8'7't 62,508 1,323,386 2,43t,158 t33,430 2.564.588 Total 1,749,E9t 62,508 t,812,399 2,579,6E0 t33,6E4 2,713,363 5. SCHOOL LEVEL EDUCATION DEVELoPMf,NT For the period For the period I Jan 2018 to 3l Oct20l8 I Jan 2017 to 3l Dec 2017 IDA COM IDA IDA COM TOTAL USD USD USD USD USD USD School-Based Management 8.612 9, 136 17.778 Modemizing Quality Assurance for School Improvement 43,3t4 43,314 I 1. t37 ||.t37 Strengthening School Based Professional Development for Teachers and Other 30,085 30.085 School Staff School Quality Assurance and Teacher Development Awards (QATDA) to 30.82 t 30.821 I58.665 158.665 Schools Total 74,135 7il,ll5 208,52E 9,136 211,664 oF , Ministry of Education, Ghaazee Building, Ground Floor, Ameeru Ahmed Magu, Mald, Republic o Tel: + (960) 3341321, Fax: + (960) 3313749, www.eedp.moe.gov.mv Page 6 of 9 ENHANCING EDUCATION DEYELOPMENT PROJECT MINISTRY OF f,DUCATION FOR THE PERIOD I JANUARY 2OI8 TO 3I OCTOBER 2OI8 6. PROJECT COORDINATION, MONITORINC & EVALUATION. AND PROGRAM DEVELOPMENT For th€ p€riod For the period I Jan 2018 to 3l Oct 2018 I Jan 2017 to 3l Dec 2017 IDA GOM TOTAI, IDA GOM TOTAL USD USD USD USD USD USD Education Strategy and Program Development 83.529 24.936 t08.465 22,786 29.t27 5 I .9 t3 Project Coordination, Monitoring and Evaluation 120,171 62,104 182,275 135,962 21,,789 157,751 Total 203,700 87,040 290,110 t58,748 50,9t7 209,665 7. EXCHANGE GAIN(LOSS) IDA GOM USD USD Cash balance as at 3l October 2018 in MVR converted to USD at the rate prevailing at 3 I October 2018 28,304 Cash balance as at 3 I October 2018 in MVR convened to USD at the rate prevailing at the date of withdrawal. 28,322 Exchange Gain(Loss) l8 II. CASH AND CASH EQUTVALENTS As at 3l October 2018 As at 3l Dec 2017 USD USD IDA GOM IDA GOM Cash at Bank (Projecl Bank Accounl) 87 t r90,718 Cash in Hand (USD in CSU safe) 600 Cash in Hand (MVR in CSU safe) 345 14 7 Cash in lmplementing Agencies Cash in NIE 27,977 27,959 Total 871 28322 191.332 27,966 Note: (i) Cash in NIE includes cash balances in schools that are converted to USD at MMA's exchange rates as at 3l October 201 8 (end of grace period for Project closure). (ii) Balance available in Special Account (Pro.iect Bank Account), has been sent back to the World Bank on l5 November 201 8. J o r fD a 2 U, Ministry of Education, Ghaazee Building, Ground Floor, Ameeru Ahmed Magu, Mald, Republic of Tel: + (960) 3341321, Fax: + (960) 33 13749, www.eedp.moe.gov.mv Irr Page 7 of g ENHA}{CING EDUCATION DEVELOPMENT PROJECT MINISTRY OF EDUCATION FOR THE PERIOD I JANUARY 2018 TO 31 OCTOBER 2018 OTHER INFORMATION The following information have been provided as additional information. They do not form part ofthe above financial stalement that have been presented under IPSAS cash basis ofaccounting. I. FIXED ASSETS (AT COST) Details Balance as Additions/ Balance as at at llll2llS Transfers 3ut0t20t8 Safe 368 368 Office Partitions t,667 1,667 881 881 Office Tables Office Chairs 1,233 1,233 Book Shelves 807 807 Computer Systems 8,485 8,485 Document Scanners 685 685 Photo Copiers & Printers 1,885 (r,r9s) 690 Switches 90 90 Shredders 82 82 fuce Cooker 48 48 Water Kettle 60 60 TV 585 585 Tablet PCs 1,178 1,178 Laptop Computers 3,622 3,622 Computer Monitor 156 156 Total (r,l9s) 20,636 NOTE: The Fixed Assets has price in MVR, therefore MMA'S excharge rate at the end of the year of acquisition is used for this statement. 2. ACOUNTS PAYABLE Details 2018 2017 National Assessments of Leaming Out-comes for policy and programme development 1,696 ,1,311 Management and Leadership Development ofStaffin the Education Sector Leaming Environment Enrichment of Secondary Schools 45,998 22,814 Modemizing Quality Assurance for School lmprovement 2,451 Education Strategy ard Programme Development 6,343 6,572 Project Coordination, Monitoring and Evaluation 3,846 2,632 Total 60,498 36,165 C Ghaazee Building, Ground Floor, Ameeru Ahmed Magu, Mal6, Republic Tel: + (960) 3341321, Fax + (960) 3313749, wurv.eedp-moe.gov.mv NHANCING EDUCATION Df VELOPMENT PROJECT f, MINISTRY OF EDUCATION FOR TIIE PERIOD 1 JANUARY 2018 TO 3T OCTOBER 2018 Note: (i) From the subcomponent ofthe project -Learning Environment Enrichment of Secondary Schools- various civil work projects were carried out. For some of those civil work projects, the Defects Liability Period is yet to expire, and upon expiry ofthe said Defects Liability Period, the amounts withheld as Retention has to be paid back to the contractors in accordance with the terms and conditions laid down in the contracts with the contractors (ii) All the accounts payable as at 31 October 2018 would be settled through Government's contribution to the Project. 3. ACOI]NTS RECEIVABLE Details 2018 2017 National Assessments of Leaming Out-comes for policy and programme development 27.977 Total 27,977 36,165 NOTE: All the unutilized funds were from provision made through Govemment's contribution to the Project. CSU, Ministry of Education, Ghaazee Building, Ground Floor, Ameeru Ahmed Magu, Mald, Republic Tel: + (960) 3341321, Fax: + (960) 3313749, www.eedp.moe.gov mv Page 9 of 9