IsI r Financial Attest Audit Report on the Accounts of the Promoting Girls Education in Balochistan (PGEB) Grant no.TF 012826 MDTF through World Bank Secondary Education Department Balochistan, Quetta For the Financial Year 2014-15 Auditor-General of Pakistan Islamabad -I#0 I I I TABLE OF CONTENTS Page No List of Abbreviations 2 Preface 3 I PART- 4 I Project Overview 5 Auditor's Report to the management (Audit Opinion) 6 Financial Statements 7 I PART-II 45 I COVERING LETTER TO THE MANAGEMENT 46 EXECUTIVE SUMMARY 47 MANAGEMENT LETTER 48 1. Introduction 50 2. Audit Objectives 51 3. Audit Scope and Methodology 51 4. Audit Findings and Recommendations 51 4.1 Organization and Management 51 4.2 Financial Management 54 4.3 Procurement and Contract Management 55 4.4 Construction and Works 60 4.5 Monitoring and Evaluation 63 4.6 Sustainability 65 4.7 Overall Assessment 65 5. CONCLUSION 66 ACKNOWLEDGMENT 67 ANNEXURE 68 I I I I I I Abbreviations and Acronyms BPPRA: Balochistan Public Procurement Regulatory Authority DEO- District Education Officer DOP- Date of Payment DOB- Date of Bill DFP: District Focal person DG- Director General DSC: Design and Supervision Construction EAD- Economic Affair Division FTR- Federal Treasury Rule GFR- General Financial Rules GoB: Government of Balochistan IPC- Implementing Partners JVT- Junior Vocational Teacher MoM: Minutes of Meeting M&E: Monitoring & Evaluation MDTF: Multi Donor Trust Fund NOL: No Objection Letter PD: Project Director PGEP: Promoting Girls Education Project PMU: Project Management Unit PCC: Project Coordination Committee PSC: Project Steering Committee PG: Provincial Government PKR: Pakistani Rupee P&D: Planning & Development PTSMC: Parent Teacher School Management Committee PITE- Provincial Institute of Teacher Training SED: Secondary Education Department SAP- System Application Program USD- United States Dollar WB: World Bank 2 I I I I PREFACE I The Auditor General of Pakistan conducts audits subject to Articlel69 and 170 of the Constitution of Islamic Republic of Pakistan 1973, read with sections 8 and 12 of the Auditor General's (Functions, Powers and Terms and Conditions of Service) Ordinance 2001. The audit of the Project Promoting Girls Education in Balochistan Grant Agreement (No. TF 012826 MTDF)" was carried out accordingly. The Directorate General, Audit, Balochistan conducted audit of the project "Promoting Girls Education in Balochistan" Grant Agreement (No. TF 012826 MDTF) during September 2015 for the period 01-07-2014 to 30-6-2015 with a view to reporting significant findings to stakeholders. Audit examined the economy, efficiency and effectiveness aspects of the project. In addition,Audit also assessed, on test check basis whether management complies with applicable laws, rules, and regulations in managing the project. The Audit Report indicates specific actions that, if taken, will help the management realize the objectives of the project. The Report consists of two parts. Part-I contains Auditor's Report (Audit Opinion) and Financial Statements. Part 11 contains Executive Summary, Management Letter and Audit Findings. The Report has been prepared for submission to the World Bank in terms of Grant Agreement (No. TF 012826 MDTF) with Government of Balochistan. Datced: J/__LiI i A ) De /f / 2015 (NASR LAH JAN) Place: Quetta Director General Audit Balochistan Balochistan I I I 3 £I I I I l PART一I l l二PRojocT ovERV&EW I:．、。n,:oR，、．,oRTT。TH：。。A。。、。、，《＾。n,，。P．、．。N) 1 o.F：、。c胤soToMENTs I I l l l I l I l l-: l 煙 4 l- l PROJECT OVERVIEW Name of Project- Promoting Girls Education in Balochistan (PGEB) Sponsoring Authority: (MDTF-Multi Donor Trust Fund) through World Bank Executing Authority: Secondary Education Department,Government of Balochistan, Quetta Grant No: FT 0 12926 PCI Cost: Pak Rs.970 million and 10.000 million USD Date of Commencement: 12'h Sep 2012 Actual Date of Commencement: 12th Sep 2012 Date of Completion (As per PC-1): 30th June 2015 Date of Approval by GOB: 2005 (As per PC-1) Grant Closing Date: 30th June 2015 Grant Utilization status -in financial 2014-15: Pak Rs.485.739 million Progressive Expenditure up to last FY 2013-14: Pak Rs. 1005.15 1 mil li on 5 I I I Office of the DIRECTOR GENERAL AUDirr BALOCHISTAN Pakistan Audit and Accounts Complex Zarghoon Road, Quetta Ph: 081-9203590 Fax: 081-9201969 AUDITOR'S REPORT Auditor's Report on the Promoting Girls Education in Balochistan, Quetta (Grant No. FT 012826) Financial Statement. We have audited the accompanying financial statements of the project "Promoting Girls Education in Balochistan (PGEB), Quetta" that comprises of Statement of Receipts and Payments, Statement of Comparison of Budget and Actual together with the notes forming part thereof for the year ended June 30, 2015. Management Responsibility It is the responsibility of project management to establish and maintain a system of internal control, and prepare and present the Statement of Receipts and Payments in conformity with the requirements of Cash Basis IPSAS, Financial Reporting under the Cash Basis of Accounting Standard. Auditor's Responsibility The responsibility of the auditor is to express an opinion on the financial statement based on the audit conducted. We conducted our audit in accordance with International Standards of Supreme Audit Institutions. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements. The audit process includes examining, on a test basis,evidence supporting the amounts and disclosures in the financial statements. It also includes assessing the accounting principles used and significant estimates madeby management, as well as evaluating the overall statement presentation. We believe that our audit provides a reasonable basis for our opinion. Opinion In our opinion: a) The financial statements present fairly, in all material respects, the cash receipts and payments by the project for the year ended 30 June 2015, in accordance with Cash Basis IPSAS, Financial Reporting under the Cash Basis of Accounting Standard. b) The expenditure has been incurred in accordance with the requirements of legal agreements. 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Uwation In 9;ý-k ft~ Bank 4±m~ ckty»nch Påid to M/s WIM-T Et *n *cc~ of fktng heff f ete~ rMne Fkg 2 2~015 ZIP«idt.&d.,.Blbtcln tofSiel*ryf ly~ 14 to i m,1 5. 2-I-Jun-15 2426BW4 90~ Paid to Adve Mre Auto MK. Responsible.Agency A prirmary responsibilkty Ior overail progress and management fr the ra o uto Secondary Edueation Departmem. Governnent uf Baloch istan. Certification by Project Nanagement on Application of Funds le PGEB project management certified that the funds have been: applied/expenditure have been incurred for the Iurposes intended in fhe Grant Agreement. Accougting Coisventioii und Staiement of Conpliance l flnuncial statemnts have been prepared in accordance with Cash Basis Interiational Public Sector Accounting .idJard- (PSAS) Financial Reporting under the Cash Basis of A ccounting. wc acQouning policics have ben opplied consistently throughoui the period. Siygificant Accounting Puieles 4.1 roreign Currency Transacrion Cash rceipts and payments arising from transactions in foreign curreneies art rcorded in Pak Rupee by appey ing ro ihe Jiireign currency amtount, the exchange rare between the Pak Rupee and the Poreign Curreney at the date of the rcceipts wnd paymnts. Exchange difTrences arising on setlement of these Iransactions are recognized in the Statement of Rcceips and 1a5 ments 4.2 Reporting Currency All mi;ounts in ihe financial statements are in Pak Rupees. hAven ne Recogniot Re enue is rccognized on ihe date of receipt of noney by bank or C.ance - Itt ;ue. Revenue is recognized on gross bas is,n an ,y relaled cost "ie recorded separate ly |kL RginofExYpenililure I xndiun is n.f gnized un the date when paynenl is made or chequc ek, i. !. i naneial year to which the p.ymes ,an is deermiied by the date on yich a chteque or paymenk aav ht i.- u: lj,ee Tierrninat Jenefis :- c bnili ts o government deputations employees are accouncddt r 4nr upeive dcpirment whledo I serv ic inaI bene1Ls anr paid lo the coniractual employees. Pay'ments br Thiril Prrty Fhe payments made by third parties do not ennstitule cuh receipm tr k ym em ontroiled by ilhe Project but do bene: .be PIroject as ihe Pruject does not eeive eash (including cash equ ten d i�сгт»Сп[ и{ [3:dVC1iis1;n1 Fы14д5 г�.1 1 П[}5,1 i6.7?д 4 i1{]�. i ifi 7]{1 1 гУп5,i5П,�ьl1 {,п41±,i�П,�?П GJ Т1»s represeпts ьhе lпrnl &4пдтА Esy Gачеrnпьепt аГ Rпlpellь5tпn in Gилисе р+и; сГ;lс[ivi[iG [о{хнэ[iпg cos[ пЕ 5д4а015] wvcrcd эы 1дСг ! ыи proje[1. 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