"" CARE MALAWI STRENGTHENING SOCIAL ACCOUNTABILITY IN THE EDUCATION SECTOR IN MALAWI PROJECT (FUNDED BY WORLD BANK) STATEMENT OF RECEIPTS AND PAYMENTS for the 18 month period ended 31 December 2017 " . • . CARE MALAWI STRENGTHENING SOCIAL ACCOUNTABILITY IN THE EDUCATION SECTOR IN MALAWI PROJECT FUNDED BY WOLRD BANK For the 18 months period ended 31 December 2017 TABLE OF CONTENT Executive summary 1 to 2 Statement of management's responsibilities 3 Independent auditor's report 4 Statement of receipts and payments 6 Notes to the statement of receipts and payments 7 to 9 CARE MALAWI STRENGTHENING SOCIAL ACCOUNTABILITY IN THE EDUCATION SECTOR IN MALAWI PROJECT FUNDED BY WOLRD BANK EXECUTIVE SUMMARY For the 18 months period ended 31 December 2017 1. Background Strengthening Social Accountability in Education sector is a three year project that is being funded by the World Bank and its implementation is being done by CARE Malawi and its partn er Civil Society Education Coalition (CSEC). The project is aiming at ensuring that girls and boys living in Malawi have access to high quality, accountable and transparent education servi ces. The project intends to achieve the following objectives: i) Increase the efficiency, transparency and accountability in the procurement process of th e education sector by 2017. ii) Decrease in teacher absenteeism rates in targeted schools in Malawi . The project is covering 6 districts namely: Mzuzu, Kasungu , Dedza, Balaka, Mwanza and Mulanje. CARE Malawi and CSEC are working on increasing efficiency; transparency and accountability in education sectors through capacity building of the school governing structures and District Networking teams to enable them monitor the procurement process of teaching and learning materials and monitor teacher absenteeism . Through the process of monitoring procurement of teaching and learning materials, district networking teams are working hand in hand with the school governing structures to take part in the planning and budget of the teaching and learning materials to be procured at school level and be able to follow up on delivery use and care of the books. Through school governing structures the project is also monitoring teacher absenteeism in which users sends reports to an ICT platform on the absence of teachers on daily basis. To increase accountability relationship among teachers, SMCs and students, a community scorecard process is being implemented on quarterly basis. The quantitative information on attendance and qualitative information on the causes of absenteeism and compliance with teachers' code of conduct generated by the community scorecard sessions is being shared with the Ministry of Education Science and Technology (MoEST). 2. Audit objectives a) Our audit objective is to express a professional and independent opinion on the statem ent of receipts and payments and the financial performance of the World Bank funded Strengthening Social Accountability in Education Sector in Malawi Project for the 18 month period ended 31 December 2017 . b) The books of accounts of CARE Malawi provide the basis for the preparation of the statement of receipts and payments and are established to reflect the financial transactions undertaken by the Project. -1- CARE MALAWI STRENGTHENING SOCIAL ACCOUNTABILITY IN TH E EDUCATIO N SECTOR IN MALAWI PROJECT FUNDED BY WOLRD BANK EXECUTIVE SUMMARY (CONTINUED) For the 18 months period ended 31 December 2017 3. Scope of the audit The audit was carried out in accordan ce with Int ernational Standards on Auditing and includ ed such tests and controls we considered necessary under the circumstances . In conducting th e audit special attention was given to th e following :- 3.1 Funds have been used in accordance with the conditions set in the grants agreement. 3.2 Confirmation of contractual framework (donor contract, IPIA, sub-partner agreement) 3.3 Confirmation of total grant received from the donor. 3.4 Variance analysis of the budgeted vs. actual amounts spent with explanations for any significant va riances at budget chapter in excess of the permitted 10%. 3.5 Detailed review of supporting docum ents relating to a defined sample of transactions. 3.6 The accounts of th e project have been prepared in accordance with con si stently applied . financial provisions and give a true and fair view of the financial situation of th e project as at the period end date and of the receipts and payments for th e period ended on that date. 3.7 Tests of control on all major purchase transaction for the period under review. 3.8 Evaluation of the accuracy of the receipts and payments for the period under review to determine whether or not it represents an accurate vi ew of the project activities (includes review of the program narrative reports) . 3.9 Review of procurement procedures to ensure that th e ex penditure tested was incurred wholly and exclusively for the benefit of th e project. 4. Financial statements The financia l statements for project inc lude: - (a) Receipt s and payments statement showing the funds received from World Bank during th e period and expended o n project activ iti es; (b) Accounting policies and explanatory notes. 5. Audit opinion The audito r is required to express an opinion on whether the statement of receipts and payments presents fairly, in all material respects the results of operations of th e project for th e pe riod ended . -2- CARE MALAWI STRENGTHENING SOCIAL ACCOUNTABILITY IN THE EDUCATION SECTOR IN MALAWI PROJECT FUNDED BY WOLRD BANK STATEMENT OF MANAGEMENT RESPONSIBILITIES For the 18 months period ended 31 December 2017 Management is responsible for the preparation and fair presentation of the statement of receipts and payments of CARE Malawi - Strengthening Social Accountability in Educations Sector in Malawi Project. This report captures the statement of receipts and payments for the 18 months period ended 31 December 2017, and the notes to the statement of receipts and payments, which includes a summary of significant accounting policies and other explanatory information. Management is also required to ensure that the Project keeps proper accounting records which disclose with reasonable accuracy at any time the financial position of the Project and ensure the statement of receipts and payments complies with generally accepted accounting principles. In preparing the statement of receipts and payments, management accept responsibility for the following : • Maintenance of proper accounting records; • Selection of suitable accounting policies and applying them consistently; • Making judgments and estimates that are reasonable and prudent; • Compliance with applicable accounting standards, when preparing the statement of receipts and payments, subject to any material departures being disclosed and explained in the statement of receipts and payments; and • Preparation of the statement of receipts and payments on a going concern basis unless it is inappropriate to presume that the Project will continue in its operations. Management is also responsible for such internal control as they determine necessary to enable th e preparation of the statement of receipts and payments that is free from material misstatem ent, whether due to fraud or error and for maintaining adequate accounting records and an effective systems of risk management. Managements' responsibility includes designing, implementing and maintaining internal control relevant to the preparation and fair presentation of the statement of receipts and payments that is fre e from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances. Management have made an assessment and they attest to the adequacy of accounting records and effectiveness of the systems of internal control and effective risk management for the Project. The auditor is responsible for reporting on whether the statement of receipts and payments is fairly presented in accordance with the accounting policies . Approval of the statement of receipts and payments The statement of receipts and payments of the Project, as indicated above , was approved by Project Management on .Q p Ap: