DCG. 79/340/01 12v December 2018 The Rt. Hon. Speaker of Parliament Parliament of Uganda Kampala REPORT OF THE AUDITOR GENERAL ON THE FINANCIAL STATEMENTS OF THE UGANDA TEACHER AND SCHOOL EFFECTIVENESS PROJECT FOR THE YEAR ENDED 30TH JUNE 2018 In accordance with Article 163, (4) of the Constitution of Uganda 1995 (as amended), I forward herewith audited Financial Statements of Uganda Teacher and School Effectiveness Project with my report and opinion thereon. John F.S. Muwanga AUDITOR GENERAL Copy to: The Permanent Secretary/Secretary to the Treasury Ministry of Finance, Planning and Economic Development The Permanent Secretary, Ministry of Education The Accountant General The Ass. Commissioner Accounts The Financial Management Specialist The IGG Hon Minister of Ethics and Integrity >v Xi ( l THE REPUBLIC OF UGANDA REPORT OF THE AUDITOR GENERAL ON THE FINANCIAL STATEMENTS OF THE UGANDA TEACHER AND SCHOOL EFFECTIVENESS PROJECT FOR THE YEAR ENDED 30TH JUNE 2018 OFFICE OF THE AUDITOR GENERAL UGANDA TABLE OF CONTENTS LIST OF ACRONYMS REPORT OF THE AUDITOR GENERAL ON THE FINANCIAL STATEMENTS OF ......................3 UGANDA TEACHER AND SCHOOL EFFECTIVENESS PROJECT/ GPE (GRANT NO. TF 017702) FOR THE FOR THE YEAR ENDED 30 JUNE, 2018 ...........................................................3 O pinion...-.-.-..-- --.- -- . . . . . . Basis of Opinion --i-n-ion-........ -.......3... ......................................3 Key A udit M atters...................... ----... ---........ -.. -..... ---.4..... -..... ....... ........................... .4 O Budget Im plem entation.......................... - -.- - - . .. .. .. .. 4 O Under absorption of funds......................................................................................5 Other Information 5 Responsibilities of the Accounting Officer for the Financial Statements..........................._6 Auditor's Responsibilities for the Audit of the Financial Statements....................................6 O ther Reporting Responsibilities ................................, .- ...................... .....................8 LIST OF ACRONYMS Acronym Meaning F/Y Financial Year GOU Government of Uganda ICB International Competitive Bidding IDA International Development Association INTOSAI International Organization of Supreme Audit Institutions ISSA International Standards on Auditing MDA Ministry, Department, and other Agencies MoFPED Ministry of Finance, Planning and Economic Development NCB National Competitive Bidding PFMA Public Finance Management Act, 2015 PPDA Public Procurement and Disposal of Public Assets Authority TI Treasury Instructions UGX Uganda Shillings USD United States Dollars UTSEP Uganda Teacher and School Effectiveness Project 2 REPORT OF THE AUDITOR GENERAL ON THE FINANCIAL STATEMENTS OF UGANDA TEACHER AND SCHOOL EFFECTIVENESS PROJECT! GPE (GRANT NO. TF 017702) FOR THE FOR THE YEAR ENDED 30TH JUNE, 2018 THE RT. HON. SPEAKER OF PARLIAMENT REPORT ON THE FINANCIAL STATEMENTS Opinion I have audited the accompanying financial statements of the Uganda Teacher and School Effectiveness Project for the year ended 30 June 2018. These financial statements comprise of the Statement of Receipts and Payments, Designated Account Activity Statements, Statement of Fund Balance, Balance Sheet for the year ended as at 30th June 2018, and a summary of significant accounting policies and other explanatory notes. In my opinion, the financial statements for the Uganda Teacher and School Effectiveness Project for the year ended 30th June 2018 present fairly in all material respects, the financial position of Uganda Teacher and School Effectiveness Project as at 30th June 2018 and its financial performance and fund balance for the period then ended, in accordance with the Section 51(1) of the Public Finance Management Act, 2015, The Financing agreement and the World Bank guidelines. Basis of Opinion I conducted my audit in accordance with International Standards of Supreme Audit Institutions (ISSAIs). My responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statement's section of my report. I am independent of the Project in accordance with the Constitution of the Republic of Uganda (1995) as amended, the National Audit Act, 2008, the International Ethics Standards Board for Accountants Code of Ethics for Professional Accountants (Parts A and B) (IESBA Code), the International Organization of Supreme Audit Institutions (INTOSAI) Code of Ethics and other independence requirements applicable to performing audits of Financial Statements in Uganda. I have fulfilled my other ethical responsibilities in accordance with the IESBA Code, and in accordance with other ethical requirements applicable to performing audits in Uganda. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion. 3 The other information does not include the financial statements and my auditors' report thereon. My opinion on the financial statements does not cover the other information and I do not express an audit opinion or any form of assurance conclusion thereon. In connection with my audit of the financial statements, my responsibility is to read the other information and, in doing so, consider whether the other information is materially consistent with the financial statements or my knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work I have performed, I conclude that there is a material misstatement of this other information. I am required to report that fact, I have nothing to report in this regard. Responsibilities of the Accounting Officer for the Financial Statements Under Article 164 of the Constitution of the Republic of Uganda, 1995 (as amended) and Section 45 of the Public Finance Management Act, 2015, the Accounting Officer is accountable to Parliament for the funds and resources of the Uganda Teacher and School Effectiveness Project. The Accounting Officer is also responsible for the preparation of financial statements in accordance with the requirements of the Public Finance Management Act 2015, and the World Bank Financial Guidelines, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatements, whether due to fraud or error. In preparing the financial statements, the Accounting Officer is responsible for assessing the Project's ability to continue delivering its mandate, disclosing, as applicable, matters related to the delivery of the Project Development Objective, and using the World Bank Financial guidelines unless the Accounting Officer has a realistic alternative to the contrary. The Accounting Officer is responsible for overseeing the Project's financial reporting process. Auditor's Responsibilities for the Audit of the Financial Statements My objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISSAIs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are 6 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 ISSAls, I exercise professional judgment and maintain professional skepticism throughout the audit. I 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 Commission's internal control. * Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. * Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the project's ability to deliver its Project Development Objective. If I conclude that a material uncertainty exists, I am required to draw attention in my auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify my opinion. My conclusions are based on the audit evidence obtained up to the date of my auditor's report. However, future events or conditions may cause the Project to fail to deliver its Project Development Objective. * Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. I communicate with the Accounting Officer regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit. I also provide the Accounting Officer with a statement that I have complied with relevant ethical requirements regarding independence, and to communicate with him/her all 7 relationships and other matters that may reasonably be thought to bear on my independence, and where applicable, related safeguards. From the matters communicated with the Accounting Officer, I determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. I describe these matters in my auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, I determine that a matter should not be communicated in my report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. Other Reporting Responsibilities In accordance with sections 19(1) of the National Audit Act, 2008, I report to you, based on my work described on the audit of Financial Statements that; The activities, financial transactions and information reflected in the financial statements that have come to my notice during the audit, are in all material respects, in compliance with the authorities which govern them. John F.S. Muwanga AUDITOR GENERAL 12th December 2018 8 MINISTRY OF EDUCATION AND SPORTS UGANDA TEACHER AND SCHOOL EFFECTIVENESS PROJECT SUPPORTED BY GLOBAL PARTNERSHIP FOR EDUCATION PROJECT ID: P133780 FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR 2017/18 GILOBAL PAR TN ER S 141 P THE WORLD BANK for EDUCATION 13P.D * IDA I WOtV3ANKlGR1UP 1.0 LiST OF ACRONYMS ADMIN Administration Block C/RM Classroom CAO Chief Administrative Offlicer CC Coordinating Centers CCCP Community Child Care Program CoW Clerk of Work DEO District Education Officer DIS District Inspector of Schools DLG District Local Government DLI Disbursement Linked Indicators DLR Disbursement Linked Result ECD Early Childhood Development EGR Early Grade Reading EGRA Early Grade Reading Assessment EMIS Education Management Information System FSCC Education Sector Consultative Committee ESSP Education Sector Strategic Plan GPE Global Partnership for Education HTRs Head Teachers IM Instructional Materials IVF Independent Verification Firm MCC Ministry Contracts Committee MoES Ministry of Education & Sport NAPE National Assessment of Progress in Education NoBEB Notice of Best Evaluated Bidder PDO Project Development Objectives PTCs Primary Teachers' Colleges RBF Result-based financing RFP Request for Proposal RWT Rain Water Tank SFG School Facility Grant SG Solicitor General SMCs School Management Committees UNEB Uganda National Examination Board - UTSEP Uganda Teacher and School Effectiveness Project WB World Bank 2 CONTENTS 1.0 L IST OF A CRONYM S ....................................................................................................................2 1. BA SIC D A T A ............................................................................................................................ 5 2.0 PRO -JECT DESCR IPTIO ............................................................................................................. 5 2.1 Project D evelopm ent O bjective:........................................................................................5 2.2 P roject C om pomnoents..........................................................................................................5 STATEMENT OF ACCOUNTING OFFICER R ESPONSIBILITY ...........................................18 STATEMENT OF RECEIPTS AND PAYMENTS BY CATEGORY.........................................19 STATEMENT OF RECEIPTS AND PAYMENTS BY COMPONENT......................................20 STATEMENT OF BUDGET PERFORMANCE BY COMPONENT........................................21 STATEMENT OF FINANCIAL POSITION AS AT JUNE 30, 2018.........................................22 STATEMENT OF FUND BALANCE FOR THE YEAR ENDED JUNE 30, 2018................-....22 DESIGNATED ACCOUNT (DA "A") ACTIVITY STATEMENT.........................................-.23 DESIGNATED ACCOUNT (DA "B") ACTIVITY STATEMENT.............................................24 NOTES TO THE FINANCIAL STATEMENTS.......................................................................25 4. B U D G E T ................................................................................................................D.T......26 5. DISBURSEMENTS FROM WORLD BANK...................................................................26 6. DISBURSEMENTS FROMGOU ................................................................................... 27 7. CLOSING BALANCE FOR GPE FUNDS.......................................................................27 8. ELIGIBLE EXPENDITURE PROGRAMME .................................................................28 9. FIX ED A SSE T S ...............................................................................................................28 Table 1: ACHIEVEMENT LEVEL FOR THE PDO RESULTS INDICATORS............-.-............. ...........6 Table 2: PROCUREMENT MANAGEMENT STATUS UPDATE.........................................................6 TABLE 3: IMPLEMENTATION STATUS OF ONGOING PROJECT ACTIVITIES........................IV.TI7 Table 4: QUARTERLY RELEASES FOR THE FINANCIAL YEAR 2017/18 (1296)...........................27 Annex i: OUTSTANDING COMMITMENTS...............................................................................30 3 SUMMARY OF PROJECT INFORMATION PROJECT TITLE Uganda Teacher and School Effectiveness LOCATION Plot 9/11 King George VI Way Embassy House, P.O Box 7063 Kampala Uganda BENEFICIARIES All Primary Schools in Uganda IMPLEMENTING AGENCY Ministry of Education and Sports P.O. Box 7063, Kampala, Uganda. Tel: 256-414-234451/8 Fax: 256-414-234920 PRINCIPAL BANKERS Bank of Uganda Plot 37-45 P. O. Box 7120 Kampala, Uganda AUDITORS Office of the Auditor General Plot 2/4, Apollo Kaggwa Road P.O Box 7083 Kampala 4 . BASIC DATA '__ *æ zz, v__ i-igf;TJa r ~~'-~ ~A 2.0 PROJCT DECITION feducaton¶~ syte. R-r ui4Dt U.,i trti a s c and penc inscoo ý- -u-,"'39 MOlh - lfli .* Copoet-- Efctv Scol:Imrvn th .colevrnen2ntefr 1eahe housing).ý z 2. Prje t ln objective. Suppor Government in improving teacher and sool effeciveness in the public primcary bducation system. 2.2 Project Coinponents L. Componcznt l- Effeetive Teachers: lrmproving teacher quality and performnance wvith specific ref'erence to instruetional pr-actices for early grade reading use of instruetional matGrials in teaching, and presence in schlool. il. Component 2 -Effective Scliools: Impro,\ing the school environment in the form of enhanced school mngmt,accountability, and learning conditions ineluding school facilities (classroorrs, offices, water and sanitation facilities, teacher housing). iii. Con-ponent 3 - firiplci-entation Support and Capacity Building: Fin ancig advisory, technical, monitoring and evaluation, impleinentat ion, and capadity- building support on the level of the edtication systemn. 5 Table 1: ACHIEVEMENT LEVEL FOR TIE PDO RESULTS INDICATORS SIN Outcicòe Inicators Basline End Achivemenit i PDO I Number of teachers trained in early grade 12 000 24,100 22,159 (84%) reading in local languages and English with at least two Early grade reading assessments 2 DO 2. Numberof-pipi-per textbook in Eglish 4 10 2 ndmathforp isngiradesPl-P7 3V PDO 3. Number of targeted schools with less than 3 962 824 9082 permanent classroorns -4 PDO 4. Percentage of pupils reading 20 or more 1% 20% 8% words per minute. (, cobort is fIlowed e:2016- P1, 2017-P2, 201 3 P3 Table 2: PROCUREMENT MANAGEMENT STATUS UPDATE - TAROE4UNE4S T4us~ - . PROCURE ME>- 1 NGOs Contracts signed RTI: MoFPED provided a Notice from URA on 21` May 2018 explaining hov VAT is treated under the new provision; Notice was shared with RTI on 22"d May 2018 as per their request for their review and concurrence. Reccived signed negotiation minutes from RTI on 18 June 2018.Submitted to MCC on 4h July 2018. 3 Extra works Contract signed Lot 7 contractor has not yet accepled the offer for extra works. The schools under Lot 7 (Centralized) were visited and a re-submitted to MCC 13-July-2018. 4 Furniture for SG clearance Evaluation report submitted on 61 June 2018 and 84 schools cleared by MCC on 2"d July 2018. Submitted to ______ __WB on 3d Juy_2018. WB _no obicction is 'Based on ',lIS 2017. PDO over achie ed 2 All 54 sch -o1s under centralized modality comiissioned. 6 1~~ ~ ?YCnMN -"ST 6 Procure SHF SG clearance MoFPED clearance obtained on 30` April 2018. to supply Draft MoU submitted to the Bank for review on hearing aids to 18thMay, 2018. Oblained WB comments on 28* children with May 2018; discussed the MoU in a meeting with hearing WB on 8tI) June 2018 and shared with SIIF on impairment. 14fh June 2018. Received SJ-TF acceptance on 181 June 2018. Draft MoU submitted to SG on 131b June 2018, clearance obtained on 12` July 2018. MoU is expected to be signed by 20` July 2018 to allow for 2 weeks' inception period before launch during the IS` week of August 2018. 7 Additional N/A Negotiations with suppliers were held on 251 primers June 2018; however, the prices quoted by the threc bidders remained high beyond the estimates. It was resolved_that the process be 8 DES servers N/A Requisition from user department submitted for room Accounting Officer approval on 25" May 2018. installation Requisition approved on 28` May 2018 by equipment (air Accounting Officer. Prepared a submission for conditioners, MCC approval to be submitted on 11V June 2018 TABLE 3: IMPLEMENTATION STATUS OF ONCOING PROJECT ACTIVITIES SBN Task: flPanned Rcspo»sibi ImpeinainSts '1 *i1P å)plt plm aiöll Status a.A 'k,i63Sb lmp32,ý,atca ; et les om lti Cènltre 1.1.3 Training of a.Train P3 16IMay TIET/EGR In progress. 3,609 P3 teachers 2018 b Refresher training of P3 Teachers teachers underlaken from 71. including 13`May 2018. Refresher * Trainers of Trainers Iraining tramng conducted from April 30th - May 611201 8. * The training of Master Trainers concluded as scheduled 23d- 29*, April 2018. • Compilation of the training report in progress. 7 S/N, Täsk Ky launed Responsibi Ihplenentatiön Status - Ii etivxies old tC9ePtii 1ty:Ctre b. Supp 15"'Dece TIET/EGR In progress. ort mber • First term support supervision supervision 2018 undertaken from April 9th-16, of trained 2018 in a total of 320 selected teachers EGR primary schools. Pending the re9ort 1.2.2 Conduct a.Conduct 30Octob UNEB In Progress. EGRA 2 field er 2017 • Field Administration in a total assessment of 405 public primary schools in the selected from 27 distriets was sampled conducted from September 24 primary - October 121h, 2017. schools * Draft Report presented at the Basic Education Working Group on 23"'April 2018 and report was approved. • The report was also presented to other stakeholders during a workshop scheduled on 24thApril 20 18. • Dissemination of the report to schools was concluded on 151' June 2018. * Dissemination to PTCs expected to be concluded on - -13thJuly 2018~ - 1.2.3 Conduct a.Train field 30`Septe UNEB • To be undertaken in September EGRA 3 assessors mber 2018. 2018 b. Cond 301Octob UNEB * To be undertaken in October uct field er 2018 2018. assessment in the sampled primary schools 1.3.3 Trainingof a. Support 3OthMay2 TIET/ECD In Progress. 1,000 supel vii J 018 Field supyuttsupeivision Caregivers on of undertaken by college tutors at 8 S/N Task Key P,-anëd :;esponsibi Dmplemen ätioiStatus 0Insïleti Altyl enUe in Cohort trained respective ECD Centers. Three caregiver s under cohort three b. Final 30`Augus TIET/ECD Validation and moderation validation t 2018 undertaken and moderati on and graduatio .4 Printing a. Procure 30dApril PCU/Procu In Progress. and prirners 2018 rement • Negotiations with suppliers distributio for were held on 25` June 2018; n of extra schools however, the prices quoted by -earner that the three bidders remained les higher than the estimates. It was less books resolved that the process be and repeated under restricted books in bidding process. The request for languages the repeat process was th at are subnitted to MCC on I l' July notuosed for 2018 and awaits clearance. instructio n. 1.4.2 Printing a. Print and 30"April PCU/Procu Ii Progress. and distribute 2018 renent • Contract for Lot 1 signed on 15- distributio 574,730 Jan-2018 and Lot 2 signed on n1 of P3 24-Jan-2018. training learner's * Delivery started on 7'1' May materials priners 2018 and vas finalized on 9* and learner to 2,727 July 2018. primers for primary PICAFARE has delivered all P3. schools GRNs and DNs to UTSEP while GRAFICA for 12 districts, remaining 2 distriets expected by 13* July 2018. • Process for field verification is 9 SN WTas.k KeYJarin&ed ':espnsibi Implenié tÆition Status ¼174 8 KIRUHURA 2 1,136,379,318 543,189,314 48% 593,190,004 161,379 9 KYANKWANZI 3 1,775,399,991 848,641,196 48% 926,758,795 252,128 10 LWENGO - LOT 1 4 1,894,125,825 905,392,145 48% 988,733,680 268,988 I i LWENGO - LOT 2[ 5 2,353,803,600 1,461,194,200 62% 892,609,401 242,837 12 LYANTONDE 5 3,155,505,721 1,895,711.166 60% 1,259,794,555 342,731 13 MANAFWA i 1,017,423,130 468,014,640 46?1 549,408,490 149,468 14 MBARARA 5 2,758,099,600 1,318,371,610 48% 1,439,727,990 391,683 15 MITOOMA 4 2,703,393,500 1,292,222,093 48% 1,411,171,407 383,914 16 MITYANA 5 2,945,458,318 1,764,329,533 60% 1,181,128,785 321,330 31 1 1 � ] � � } ) f i 1 # Э 1 ! ! ! i . 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