I MINISTRY OF EDUCATION I I ANNUAL REPORT & I M ENT FINANCIAL STATE. I SEIP I 2015 I I I I I I I I I I I SECONDARY EDUCATION IMPROVEMENT PROJECT (SEIP) COMPONENT I (P145741) TABLE OF CONTENT Statement of Financial Performance 2 Statement of Financial Position 3 I I Statement of Cash Flow 4 I Notes to the Accounts 5-8 I I I '' 1 AUDIT SERVICE I In case of reply the number and date of the I letter should be quoted My Ref. No: ... ~ J~ \~. /~ /6 I Your Ref. No~ ........ ....................... . Coot/ GoM711lnce and AccountabiliJy \J\J\ ~lo P. 0. Box................................................... . Tel: 233 (0) 302 664920/28/29 A::c..r.:_ ~ A.. ....... ······················· ................................... I Fax: 233 (0) 302 6751495 Website: www.ghaudit.org ~~ ··········· ...... ~.~~ ................ ~. ······· .....20 ............. I SECONDARY EDUCATION IMPROVEMENT PROJECT (SEIP) (COMPONENT 1) I Auditor's Report on the Financial Statements We have audited the accompanying financial statements on pages 2 to 8 of the Component 1 of the SEIP Project, financed under of the IDA credit Number P145741 for the year ended 31st December, 2015. The statements comprise the statement of I financial position as at 31st December, 2015, the statement of sources and uses of funds, statement of expenditures (SOEs) and statement of cash flows for the year then I ended, and a summary of significant accounting policies and other explanatory information. I Management's responsibility for the financial statements Ministry of Education, which is the implementing agency for SEIP is responsible for the I preparation and fair presentation of these financial statements in accordance with International Financial Reporting Standards, 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. I Auditor's responsibility Our responsibility is to express an opinion on these financial statements based on our I audit. We conducted our audit in accordance with International Standards of Supreme Auditing Institutions (ISSAI). I Those standards require that we comply with ethical requirements, and plan and perform the audit to obtain reasonable assurance that the financial statements are free I from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts I and disclosures in the financial statements. The procedures selected depend on the I I auditor's judgement, including the assessment of the risks of material misstatement of I the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures I that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes I evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by Management, as well as evaluating the overall I presentation of the financia l statements. We believe that the audit evidence that we have obtained is sufficient and appropriate I to provide a basis for our audit opinion. Opinion I In our opinion, the financial statements present fairly, in all material respects, the financial position of the Component 1 of SEIP Project as at 31st December 2015 and in J ~.I I accordance with International Financial Reporting Standards and the Project Agreement \)- Guidelines. I I UL I DEPUTY AUDITOR-GENERAL FOR: AUDITOR-GENERAL I I I I I I I SECONDARY EDUCATION IMPROVEMENT PROJECT (SEIP) COMPONENT I (P145741) COMPREHENSIVE STATEMENT OF FINANCIAL PERFORMANCE FOR THE YEAR ENDED 31 DECEMBER 2015 SOURCES I Fun din 2 121,610,609.42 Total Sources 121,610,609.42 USES OF FUNDS Com onent 1 '"I Goods and Services .) 9,747,798.05 Non Financial Assets 4 110,311,219.45 I Total Ex en di tu re 120,059,017.50 eficit 1,551,591.92 I I I 2 SECONDARY EDUCATION IMPROVEMENT PROJECT (SEIP) COMPONENT I (P145741) STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2015 GH GH CURRENT ASSETS Bank 5 1,551 ,691.92 NET ASSETS 1,551,691.92 REPRESENTED BY Accumulated Fund 6 1,551,691.92 3 SECONDARY EDUCATION IMPROVEMENT PROJECT (SEIP) I COMPONENT I (P145741) STATEMENT OF CASH FLOW FOR THE YEAR ENDED 31DECEMBER2015 I FINANCING SEIP CREDIT 121,610,709.42 Funding from other sources: I Interest Earned TOTAL FUNDS AVAILABLE 121,610,709.42 PROJECT EXPENDITURES Goods and Services (9,747,798.05) Non Financial Assets ( 110.311.219.54) Add/(Deduct) Increase in Accounts Receivable Increase in Accounts Payable I I NET CASH (OUTFLOW)/INFLOW 1,551,691.92 Analysis of Changes in Cash and Cash equivalent I Balance as at 1 JAl\TUARY. 100.00 I Net Cash (Outflow)/Inflow Balance as at 31 DECEMBER 1,551 ,59 1.92 1,551,691.92 I Analysis of cash & cash equivalent IDA Special Account (Cedi) I .551 ,69 1.92 I 1,551,691.92 I 4 I SECONDARY EDUCATION IMPROVEMENT PROJECT (SEIP) COMPONENT I (P145741) I NOTES TO THE FINANCIAL STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2015 I NOTE 1. Basis of Accounting I The Financial Statements are prepared under the Historical Cost Convention Accounting Policies The following accounting policies have been adopted and applied consistently in I dealing with items considered material in relation to the SEIP's Financial Statements. a. Revenue Revenue is accounted for on cash basis. This means that Revenues are I recognized and recorded only when they are received and not when they are earned. I b. Expenditure Expenditure is accounted fo r on cash basis. Expenditure is recognized and I recorded only when they are paid and not when they are incurred. All current operating expenses are accounted for in the period incurred. I c. Foreign Currency Transactions I Transactions that are denominated in currencies other than the Ghana Cedis are translated in Ghana Cedis at the exchange rate prevailing at the date of I transactions. Transactions in the Comprehensive Statement of Income and Expenditure for the year are translated using the average rate. Balances :I denominated in currencies other than the Ghana Cedis are translated in Ghana Cedis at the exchange rate prevailing at the Balance Sheet date. Gains or Losses resulting from foreign currency are taken into the Income and I Expenditure accounts for the year in which they arise. I s SECONDARY EDUCATION IMPROVEMENT PROJECT (SEIP) COMPONENT l (P 145741) I d. Fixed Assets Fixed Assets are expensed on acquisition and therefore no depreciation shall I be charged on Property, Plant and Equipment. NOTE 2. Sources of Funds Revenue is made up of IDA Withdrawal Applications which were received in the 2015 financial year and interest income received. Funds Received from the I Bank Interest Income 120,880,000.00 730,609.42 Total I 121,610,609.42 NOTE 3. Good and Services Goods and Services represent Component I under SEIP and this expenditure refers to Travel and Transport, Training/Seminars and Conferences, Consultancy Services, Scholarships and Awards, General Administration and Operating Expenses incurred at the Headquarters in the Management of SEIP Project. The Programme Management expenses included the fo llowing: Travel and Trans ort 529,43 1.03 Training/Seminar and I Conferences General Administration and 366,540.84 1,054,371.98 Scholarshi s and Awards 5,185,847.63 Consultanc 2,611 ,606.57 Total 9,747,798.05 6 SECONDARY EDUCATION IMPROVEMENT PROJECT (SEIP) COMPONENT I (P145741) I NOTE 4. Non Financial Assets I These represents the construction of new Senior High Schools, upgrading of existing Senior High Schools, Consultancy Services provided and procurement of Plant and Equipment. Construction of new SHS and u rade of existin Schools 105,071,257.39 I Consultanc Fees 5,074,179.99 Plant and E 165,782.16 I Balance at the end 110,311,219.54 NOTE 5. Reconciled Cash Book Balances I These represent balances on the Project Designated Accounts and the beneficiary District Accounts. I I I IDA Special Account - Cedi with National Investment Bank 1,55 1,691.92 I District Bank Accounts Balance at the end 1,551 ,691.92 I I 7 I _ _ _ _., I I SECONDARY EDUCATION IMPROVEMENT PROJECT (SEIP) COMPONENT I (P145741) I NOTE 6. Statement of Accumulated Fund I This represent Un- allocated cash balances from Withdrawal Applications and Exchange Gains on Project Funds. I STATEMENT OF ACCUMMULATED FUND FOR THE PERIOD ENDED 31 DECEMBER 2015 I I 100.00 I Excess of Income over Ex enditure for the eriod 1,551,591.92 I Balance as at 31/12/15 1,551,691.92 I I I I ~)t~i.f.:tJ.-111 I &.;y···· k(·· ·· · · ····· r~ CHIEF DIRECTOR DIRECTOR OF ACCOUNTS 8