FINANCIAL ATTEST AUDIT REPORT ON THE ACCOUNTS OF PUNJAB EDUCATION SECTOR REFORMS PROGRAM-Il WORLD BANK CREDIT NO. 5106-PK SCHOOL EDUCATION DEPARTMENT, GOVERNMENT OF THE PUNJAB FOR THE FINANCIAL YEAR 2014-15 AUDITOR GENERAL OF PAKISTAN ISLAMABAD TABLE OF CONTENTS Page Ni). I L it f i) abbre iati ns Preface PART-I 4 'rogram Overvicw Audilor^s Report to the Management (Audil)r^s ()pini(n) 6 Financial Slalernenus PART-Il C O VERING LETTER TO THE MANAGEMENT LETTER 9 EXECUTIVE SUMMARY MANAGEMENT LETTER . Introducion 12 2. Audiit Ohjectives [ i Audit Scope and Methodolog,,y 4. AUDIT FINDINGS AND RECOMMENDAT[ONS 4 1l FinaneLil Mallagemt11 42 Procurement and Contracit Manwenaent 4.3 Overall Assessmcnt 5. CONCLUSION ACKNOWLEDGEMENT 24 Annexure 1~ Abbreviations and Acronyins SDAC Speeil Departienila] Accounts Commiite DDO Drawing and Disbursing Officer DFID Departnt for Interatinal Developmem DLIs DisbursuNement Linked [ndicaiors F A Executmg Agencv r ~\[ Executive Cominitteke. f: h National Eocofmic Conil Foreign Currency GoP Governent of the Punlah INTOSAl Imernational Organization f SfSuprem Audi! lnslitutI.ns IPSAS Inlernatiocnal Public seter Accounting Stamdards 1C Local Currency ML ManiagemenRt Letter PCU Programmue Coordination Unit PESRP Punjab Education Setor Reforms Program PRA Punjab Revenue Aulliority PSDP Publie Sectior Developmen Programme SDR Speial Drawing Rights SOE Statem-eni of Expenditurt JORs Terms of Reference World Bank PREFACE Tlie Auditor General of Pakistan conducts audit, subleel to articles 6i and 170 of tit Constitulijn ef thle Islamie Republie of Pakistan. 1973, read with Sectiois 7, 8 & 12 f thle Auditor GCeneraLs (Functions, Powers and Terms & Condirions of Service) Ordinance, 2001. This audit o Finanial Stateme-nts Of Ihe -Punjab Education Sector Reformus Programme-11~ linanced b Goverrnment of the Punjab and the World Bank for te [inaneial year 20l4-15 was carrie-d nu acc'.rdingly. The Direetorate General Audit, Punjah Lahore anud Director General (District Audil South iih a nducted audit of the Program during September. 21)15 for (Ie fi nancial year 2114-15 with j C w report significani findings to sakehoLders Audn exami ned the economN. efficiencN and effectiveness aspects et [e Program. In addition. Ludit als assessed, on lest eheek basis, wberher the mamgemem complied with applieable Laws, rules anld regutations in m anagiig te gram. The audit report inicates specifjc acions t hat, if aken, wil help ihe manaeen reale he objectives of the Program. The repor ias been diseussed with the Program Managumem n Se pte mbe r. 2015. The report consists et two parts Le. Part-I contains Auditør's Report (Audit Opinion) and Financal Statemeints and Part-II consists of Executive Summarv. Management Leter and Audit Fi nd i s. The report has been prepared lar submkission to the WorI Bank in erms of nIa .Areeme nt. (Dr. Miuhamniad jamuil Afaqiý Date: Director General Audit. Punjab PLace: I.atucre. 3 PROGRAM OVERVIEW Name uf the Program./Prograime: Punjab Education Sector Reforms Progran-il Sperisoring Autlhority: World Bank Lxecutmg Authority: Program Management Implementation U.nit (PMIU, PESRP-]J Credii No. 5106-PK PC-T Cost: 350)00 rmillion dollars Date o Coimenceent: 15-06-21112 Actual Dalc of Commencelem: [ 5S-06- 2012 Date of Completion (as per PC-[): 31- 12-2015 Dale of Approval by ECNEC: 25-05-2012 Date of (losing of Loan Agreeneis: 31- 1'2-20 15 Loan Ujilizatien Slalus: Ameuno uilized up-lo Amount utilizd during 30.06.20 14 2014-15 Rs. 303-909 miltion 1 Rs. 163.787 million Progressive Expenditure upto 30-06-2015: SAiount utilized up-to 30. 6.2 m15 r- - - --- - -t Rs. 467 696 million 5 AJDITOR'S REPORT Auditor's Report on PESRP Financial Statemenis We have audited the iccompanying Financial StaITTmnts of Punjab EducatioŽn Se hr Reforrnls Program that comprises of Statemient of Receips and Payments. Statement of Comparison of Budget and Acual together with [be notes torming part thereol for the vear ended l[Ih jullc Management Responsibility fi is tlie responsibility of Program Manageient to establish and iaininn a SYstem of iternal comrol. and prepare and presen[ Ihe Sutnement of Receipts and PaMIenTIs in confornity with te requirements of Cash Basis IPSAS, Financial Reporiing under the Cash Basis of Accountin Auditor' Responsibility The responsibilliv of the auditor is to express an opinion on tihe Financial Statunets based oi Ilie audit conducted. We conduCIed our audit in accordanice with Iniernational Standards et Supreme Audit Institutions. Those standards require thal wc plan and peiform ffie audli to oha1n resj1nable assurance about whethe.r the Financial Statements are [ie of material misstatements. SIJudIt process ineludes, examining on n lest basis, evidence Supporting Ile amounts and disclosures in the Financial Statements. It also incudes assessing the accounting principles used and significant estimates made by management. as well as evaluating the uverall statement presenttion. We eli eve that mur audit provides a reasonable basis tor our opinion. Opinion in our opinin: (a) The Financial Statements present fairky. in all material respecis. the cash receipts and payrnents by the Program for the year ended 301 June, 2015 ini accordance with Cash Basis IPSAS, Financial Reporting under the Cash Basis of Accounting Standards. (b) The expenditure has been ineurred in accordunce with the requirements of legal agree ment. i)r. Muhanmmad Jamil Afaqi) Director General Audit Purjab Place: Lahore Date: FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 30"'JUNE, 2015 7 Financial Statemenis FINANCIC1AL REPORTNG l'NDER CANn BASIS OF ((1 iNI(_ i, GOVERNNlEN|T E NTI E\ SlIemCnt o f Iecci pis ind Pay,Enrts PIIIIjab1 Educaution Sector Reform P1rogiramme (PESRP) For the year ended Juie 30, 21115 (Rupees ii 000) 2014-15 2013-14 Receipts/ Receipts/ b Description Notes (Payments) Payments by (Payments) Payments by controlled by extemal third Total controlled by external third Total entity parties entity parties l-, A erionom, 43 144,927,167 144,927,167 135,322,385 135,322,385 c,rW. Ltctz U . 7,356,998 7,356,998 9,147,509 9,147.509 -1e -1.3 11,349,327 11,349,327 11,642,200 11,642,200 b-.y'L ,%T lll 39.871 39,871 - 134,565 134,565 RECEIPTS *o 163,633,492 39,871 163,673,363 156,112,094 134,565 156,246,659 - .- A , .rime ;iri 5.2 144,927,167 144,927,167 135,322,385 135,322,385 r Eb:,)G>1 5.1 7,356,998 7,356,998 9,147,509 9,147,509 5.1 11,463,440 11,463,440 11,689,043 11,689,043 k.,,. n'E., -r:z s.1 39,871 39,871 134,565 134,565 PAYMENTS 5.o 163,747,605 39,871 163,787,476 156,158,937 134,565 156,293,502 3.0 278,925 278,925 325,768 325,768 -~ ~ ~ ~ i - ·4"''~rl:é a[ Cashatendofyear o 164,812 164,812 278,925 278,925 1 ) F p*ý .FR, DEt ECTOR I N PROGRA3ME DIRE(IOR ASSISIN I DIRECTOR (A1'DII Punjab Education Sector Refrn, Proolunmne (PfSRp) Receipts & Payments Against Financing Sources ( onors & GoPb) Slalement of Cash Flous For 1lhe vear ended Juiie 30, 2015 Dona Source Deriit'o\ote" Go P0bl S(SS GBP £t. ' R R,W Opening Blåncc 3 2,826.674 272325 278,925 UJPh ;loatljiedk l111 ( PII inci ui rdI[creas e [cc rc in h c xH1 11) 11_-Erä (lusm Bfailancc 6 1,681,556 - 164,812 164,812 DEPI:TY DI1ECTOR FINANCE PROGRAM1 DIRCTOR ASSISTIANT DIRIEClOR[ i.A VD iT> �' � г'! г � г�, С � r^. •г, � '.С Гв: .: У "л� г� ^ L^. �70 r - �'� г'! r1 .г. r, м «f• _ � �: ',р -= ,г� � �t' ,г, г- -f г- r�i :., ыС' �q Г� --t •Г, Г.7 - �. �. ^Г �Л � r 1 rry �'f' [� s' � - г.7 �!, ,у Г- � - г3 +-t � � н U i' � n ! r� ^ •Г� уУ' fV r��1 iГ• �..� :� �,v f �Гi 1f'� Г". „г] -� '.i й ^ у ьiq `7 'J ьr �'. У ^ '-' r?' гГi Г�! �Г'i � Р7 � в/ ^ � С ' п. 1!; Г�i Г'! 'Г� гв] �Г. •-Г 'S. ~7 J � С' г '/,� "I' ��v' гr� �Г• , . 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L3. � s _г, � 1 � �1, 1. � г. - l - - г r г' i 7 -� � ~ �`� � �r ^ � _г r .-7 - �, с, � � ` �_ - �_ � �. � ^, _ _ •, J yi ,.,f Л у .�. � м � �L �' � _ f ; Е � �r � J. �, V � _ _ � � = Е-- �J �- �г, �, х � :.. с `` �г, I � i = -_� �' С, � s � --� � - � � � `� � ; I • _�. ;� _ ^а � J :+ �� ^�^ w "' .� � ;Г.' i .�, С - � ,у, � С. С "! = ' � � � ^.:i - ^ ~ .l: у "5• . � �_� . � л• r ~ l J � _ j С � - r � � � ~ U � : � .` .� � - С '-' ^,i ; : � � - ;i; :� �: `.� С 4J .� � � �� 1 jý Programnic iNlaii-.igen)ent & Implernentation Unit Punjah Education Sector Reform Programme (PESIM) School Education Department Governinent of ffic Puniali Notes lo (lic Financial Stalements for (lic year ended June 30, 2015 PRO, Projvet Description Background ol'PVSPAI Dic Pkmjid, Goýcrnmcni hlvý enlered Imu A ne%N. PWICet .;\gleclllelil (11 1259ý8) ýNjffi Internaljonal ASýýoclntlon(JDA)dätcd 25, 2012 0-ectii No. ý10(30 -11A illeotillectit-)[] with tilel:Iiiiiielil" 'kl-IrCCIIICTIIUI i h e sai n e d at e. be INN. cc ii i h e ox e ni i ii e 111 o f l >11 k i st 1111 111 ld i h e l DA 10 1, t-I nj ile i 11L 1, 11 11-i iib Ed ii Lat l (}11 S celor Pro Icel - I l ( the ProJCC t), C 1.)',1 ITIOU n tl ii g i c) I ý S S 4.40 7 m l l l l k) n i %) r a I le 1-i oj 1) l threc N. en l I i e ( l ox-c 1,11111 e i it o I Pa k l si n 11 111[,-, a] so en ici-ed l ii i ti å i i-a lit A L, reci-ii en t tiated M d i-ýý h, 2 0 1 xý i t In t Ii e UK ( ;U ý, C f11 111 C 111 t ll 1'0 11 1 lic Depå ri i i i e i ii fo v I niei mil i en a DcN c11,13111,- ni W FID ý I-ol- 1 gl-I-int of ý 150 million 10f break up aild ol on/off 1.(11111ýoT]Clll ol- D1 I ,,r,iilt please äcC notc 4 , 1) for a pericill o 1, s . , N, ejls Märeli 1, 20 13 io 1 une 3,020 19) lo stippoil PL SP- I i ý Ilie project al 4 l] i L-, Ný l 11 W o r l d B an K. 111 e l li-o i ect s iii p 19o ris llijn',ib I:cliie,iiicýii Sectur lýefc-m-iii Progräni (PLSRPý till[]-iieel 111 -1001 anj i liv I-lew pro 1 cc 1 0 f W o r] d B u i i k has i. Ny(, et i m pol ic n I l ) 1 rC 1, 11 KI ýCJ e 011113 15 Ile [11 0 l 11 (k) ti C [11 11 l e h \N 1.1 l J- fi smi ic e l I'S R P- l l - am o k i n t i n , (o IJ S D 3 4 (1 m i l l i un (9 7 k b l tol a l e re J i t 1. 1.1 Cými Po n ci 1112 I-eý--fiiiieýii Assistancc ( I A) e (bl 11 13011C 111- \N 11 i c I i NN-o ii l d 1-11111 ile e esse lit i a j ad v soc, , i cc I i i i te ii l å i te] e å pii e -11 y b ii i l d f jig ý ii pport 1-0 r 111 1 S R P- I I , avi o till l ti l 19 to USD l 0 nuffion ( of (ile [()t,-11 I lic Cic,lit plucceds Ilie 13CFI(.>lllclllly cllshlinýCCI 10]- ot 10 TIIKJIIJýIIIN, ýLLII'VCJ al-id V(JUJIK- \Nciglited Di-,litti-,ýýeiilu.iii Liliked ndlcýjlof,ý iDIAý,ý, flic Lvecill onk k .J I i l i . Cd 11 Lit] l IS t 5 C I CC Wd b Lid ýIcl Ii cad s o i G t} P 1). 1 h e,., i: 11 lid get 11c,kl ý 11 aN, e lice 11 d cc l iirej I: I b l e f-, ý pc 11 LI i 111 re ni e i I E 11,,) l )N 1.1 le J nilo i-s ( l 1 1. ýc e 11 t) w 4. 1 111 so). L. l l L? 11, l e l- x PC 11(1 l 111 rc Prog ra 171111 e ( l- I - 11 s ) 1,0 1 11 l- S I >- l I o ri) 19 11 sc S it l ii i re I iltcý l K: x pc 11J i ii k i i-e. S c l wo l k 111 e i j f., i n I i ý r l ý, 1) 1 l pc nd.ý - Pc rfk in ii a tice- Bliý ed l ncc ii i i ý cs, 1ýehool Monlikninu, 1"11Llblc liuth-m lines (WIIIA: ýiý decl4it-ed so [)N Donor, linj I A. flie iiiýiiiýlLeillellt and ltill)lelllclltýitl()11 t0r Ilie Prolect iire done under ihe sij[ýci-ýlsli)ii School Departillent nj- I>liiij,,ib GOXCfliMCI11 \ý111CII 1131, PP_UCCt NDIE$ýICTI]elll loc"licel in l-ginore, mannued K Ilie Pro-ram Ilie lli-C)jectstecl.illilcotýITI]ittec, lie,icicd planniny and 1)cýCloý)tllellk 1.2 Proj cc 1 0 Ilj cc t n es I-lic Proleci's eleý;clcýpilleTil objcuiivcý ol- PI-SP-11 alc (Il 1ý011301-1 Ilie etjucýiijon hector relorm proljnim 1ý e GO`NCIIIIIICIIT 01 PWIJJ11 NN-Uk millol Lw111ýý, til 111,rcuLýed C1111t1 Lýclwol u( multilple IcNel.) and stiljell? liellieýeiiiellts, h iilsu mills Io 1111p1-0%e aucess Illd C11110 , imd (lic qipalllý and rclcý uncc (jf'udtjeýill()ii in Punjab. Sope if th e Project Scope ol PLSP-Il includes po'son of support tK School [ducaio DepartmeM and GoPIb by bridging [lic implriciention gap and delivery imiecliLmiiiIri. PESP-lI mcinbraces t]hC principles olincreased transparency, participation and coliboration as essential to a1complis1 iis mission ile spethglting tbC pZlrametCrs of LCCss, gilLI Und 1.4 Estimated Cost Estinated Cosi of PESRP-il financing for the FY 2012-13 ---FY 2014-15_(3 .earsj Partners Original Cost in VSD (in Pai-Iners imillion) IDA 3 0 (y DFID m 0 CIDA I o. -3 Prpvincial Goi. financing 3337.7 * Total 4,40.0 * Cop of Project Appraisal Document (PA) is attaclied al Anneure-A 'or pcrusal. 16 Sources of Fiance PESP-li s niided by World Bank DFID, UlDA 1id c lovi.t the PunjýIh. Detail of limding is show n in Para 1 . 1.6 Comporents of PISP -il PESP-II by World Bank bas 1wo componeints ie. at te time oftransfer of funds to Pro,,incial Constlidated tunid (Accouint- .l both d0r receipt and paiment purposes 2.4 Fixed Assels Fred Asse'.s t PIii are dislosed or I 1Iistorical ( est Iask Seliedule of Fied Assets has been Liken at Annexure- 13, 2.5 Provisiouns Duc ro cash basis of accoting, no pro 1 ion is recogiized in tmmeial staents.i 1 lowes er, if there were ai1\ evert wvhIch may have legal or ot er obligatiion s ith Ceotintent lIixtine Al l inpliicai ihen it iwould have been ideiIfi ed bÅ separate dislosure in lie noles to the tinanil ..ctem1ents. 211 Offsetting Neither asset-Iiabilities nor Cind I lo and e\penditure lave beun sel -l tin ie linancial st1teenieit 2.7 Recognition of Receipts Reecipts are recogni zed when the required lmounts are credilted te the IPumab (vernment Consulidated Accouni No 1 (Non Food) tlid ssth the State B:k of Pakistan. 2.8 Recognition of EXpenditure ExpeindirLJIe is recognized on tIe date ie paimeit is made or ch elqie is issVedi Financi year to wi-chC paWm ae1l perail is delerminied by the date on which a cieque or paym nent adv ce is issued 2,9 Cash and (ash Equivalenus For the purpose t cash hlow statement, cash and cash equivalents comrirlse cash in the PunjIb Government Consulidated Account No. l (Non-Food) iaintained with The State Bank of Pakistan related to IDA Credi for EEPs and [r TA in the Special DrawinL Account with Gooveriiment Treasury (Freasury O-ee Lalhret 2.11) Pr-ject 1Impleimentationi and Closing Period t [DA (cedil - Startil JLIK 1, 20l|2 and NAIl end on Deeil.rr 31 20 ý15 with a rce peried ol tliree mit1b li J D ) lint - March I, 2013 and ending o Juie 3i, 21l9, with a grace period ofix i oiths 3 Opening Balance Opening balance Comprises": Description 2014-15 2013-14 ISSkRs. (in 000) jSS Is. (in 000) Cash at Bank 2.26.674 ?75.9, 3,303.23 3.768 GoPb Share Totl 2,826.674 278,9251 3,303,203 325,768 Closing [alance of tlie last ear is slow n as thie Oipeniing Balance ef this ear. 4 Receipts Receipis fron Donors Details o4 donor receipts K3r the i ancial Yenr 20|4-1 5 is enelosed . Anntexurt-C. 4.1 IDA Credit: Ile IDA inder the 11inamein1g Areemei dated Max 25, 20 l2 bea i ti ~ red ii No. 51 Of- K ektelded the crediT it an aiokiutt et]uivalenl tuo SDlR 225 millon ([ 35 i) to Ass e Pin ab Govriiiieiii i aicinig the Project. Vie Uredit proceeds are periodicalv disb3ursed for: (i) Elicible Expendture Programme (LLPs comprising of: Salary related ex peiditure. School Concil (SC) Granlts. (iirs Stipends, Perlrmance-Bsed Iicetivs. School Meo or l igible budget lines of Pil 1- Vs dec lared so by Donors and (ii* TA - Goods. Consuamis sersices, and iinn u und Workshps. ufiom the IDA Credit accotint to the Gnernent f 1Puinjab Consolidated Accour No. 1 (Ntion.Fod) Ilirough Sitae Bank o ,Pakislait based on Wj_itIdi.aJ Appication subiltitied bN GoPh. eioevei. I A iomnpoenft titifds recei\ed io Coiiv']idaled fund Accounti are released into a Speci al Dringiu1c AcOint (SDA) by G-oPh. The finds imained in `,DA are part ol Ilie governient' FresLrry Sigle AcouIJn i. operated bN the PMl1s desianai ed persons ( Proeram L)irector and De 1 i recir iinac e 's Ie l SDAt ensures uï l nahi lit i e arniarked tuids to PMI o dr critical TA ltis iles tt Ct timely basis. The quatiia of resources iraniisfered to tle ProiiNcial C onolidated [und at chi tjsdirsemeit e ele are linked, to suecesdim l chie,eeni ol )isbuirserment Unlik [idctors (D il here, however. are iwo tmportan cond i lns (i) disbirseimiemt is done on reinitursemeil hasis exuep Ior one tinre 545 million udvance at Ilie effectiveness of the agreememti. (ii) %early allkcated aioitt inreases i. S i10 alnd li tion respeciely for EEPs andt DL allocailonl icereases accordingl ach year. Fuids for IA are- htosex er. disbursed on advance basis by tc World Bank aaist forecasted ariount bH PMU SED Ilie D1.1Is are monetized equall, based on the planned dibisement for a particular e ele to incentivize Ilie Punjah Gnvelmnent to Iocis in i[le prirty implementatiin ofactions that, tocether. support the ProjeC outComes. D)isbtirsemienit L in.ked lndicators för PISI- I are: DI I-1-Field based pirn.tflessionalL development: si.rentgtlcnin hg i-eld- based ieathing adx isory suppor t för iimproved Iaclher perforntarice: DL[-2- leaclher recrititient: Imii piring 1¯cacher QualIt ai entr: DLI-3- teacher rationali\tion: Fixin l teaching posts at the school lexel based on school ieeds ind reallocatii teaclers itnline with ationaliM.ed posts: DLI-4-Se nol nen alary iudfet: ¾eiing and executing school budget intine with school resourcing needs: DI-5Decentralized retrce managemnt: Decenimli/ini resotrce managenmell powsers to schtools: DI-I-6-Teacher perlerance incenix e: incetiving leacher and studeFt performance b% sirengitheiiing Ilie link bet st een mronetary rewa rds and stuldeit tclhieeiient: DL-7-School councils: ,irnciheninitt lie Jlapaclit\ of and cmpowerin commlitte es to support monjlor anid promote school performance: DI-8-Proisio and use of system and schooel pertorimance information: Reglar' eeding relevant aIId reliable information to varioIs leeC to improe ex edetce-based school performne liancgemetit t)I-9-Private school vouchets: Sirentieiiin_ prograui design ond expandii cOverage el uinitt replacemnen1 xoueher to elildrell from disadstanlaued urban Iouseholds bv ilnereasing selool chtoice to Il ude priate schools ider a lit>- assumnce ss stemi: DL--0-Siipend for secotdarx school is: increasing incetniives, eficicyx und delier perforniiice ler promoting the Irumisitinli to amnd retention of girls al Ihe secoidary lex el. 4.1.1 For Eligible Expenditure Program IIS$S in ollos Funds received under IDA Credit No. 51060-IPAK FY 2012-13 WithdrgIal ciedied by SBP on iune 26. 201 2 45.0 0 o 4. 24.14 Balance as of June 30, 2012 on of'E EPs 5 400,000 4,243,5 14 Withdraaål credited by SBP on Jne 27. 21 3 24,479.987 20,01l) . Otal fun received for the FY 20l2/2013 69,479,987 6,663.524 Funds received under IDA Credil No. 51060-PAK FY 2013-14 Withdrawal eredited by SBP on December i3.U-113 17.840.4 1.93.368 Witlhdraw al cred ited b% SBP11 on J Ljn 1 20 13 98.01 L83 -,651.5 TOtal fundis receied for the FY 2013/2014 115,851,888 11,576,220 Funds received under IDA Credit No. 51060-during the current period Withdrawal credited b SBP' on Jine 27, 2015 II 1,296,56 Ij L.21374 Total funds received for the FY 2014/2015 Il 1 .296.560 1,321 .743 4.1.2 For Technical Assistance ider cmtiponem II of PES1P-II n amo11 1f US 1 iillion has been allocated or Teelhnical AsianLne (TA1 t i he admlSIisTred bs lPMIIU. I.'A component is exected throtuh a special drawigaont (SDA). and Ilunids alloemaion i done bs GiPunjab as part ff regular budge of PMIL. Detal 1f i1iding roi IDA n TA comriei for ile perid is as IMlows: Funds receied for lie FY 2012/2013 ts 5 ks in 000s WUildrawal credited by SB> on Juine 26. 01)12 500,000 47.1 5 Batance as of June 30, 2012on account ofTA 50qü1i00 47.150 Wcdrawa[ credited bs SBP on Jine 27. 203 3,579,399 353,i>07 IDA Funds received during FY 2012/2013 4,079,399 401,157 Direel pas mem maed by World Bank or Mare l5. 2013 24ql )5 34,919 Direct p: iment mide b\ World 1ank on March 0-2 2' 1 49195 2 Direci pas'urent made by World Bank on N larh 1 07, 2013 240, > 2, Total Direci Payvments made by World Bank fron TA 747.585 74,75g Total funds received for the FY 2012/2013 4.826,984 474.915 Funds received for ilie FY 2013/2014 Wtidrqal credited bv SBP on June 20, 2014 671,199 6980 IDA Funds received during FY 2013/2014 671.199 65,980 Direi pas men iiade by World Bank en Jan 13, 2014 448.551 .4 l55 Direct pam minade b Work Bank ein an 13. 2014 448.551 44 355 Direet pa>ent made bk World Bank on March 04. 2014 448 1 44.855 Total Di)rect Pay menis made b World Bank from T A F N2013-14 J345.653 i34.565 Total funds received for the FY 2013/2014 2.016,852 200,545 Funds received for the FY 2014/2015 Wiidrawal credited Ly SBl> on 23 Fe 2J15 ll01 11.584 IDA Funds received during FY 2014/2015 271,852 27,584 Direct paymiient iide bv World Bank on 20 April l; 3-7,871 Total Direct Paynenis made by World Bank from TA fY 2014-15 398.713 39.871 Total funds received for the FY 2014/2015 670,564 67,455 4.1.3 Foial funds fron 11)A ftr FY 2014-l5 Us5 Rs in 000s E[Ps flnds receiNed for tie FY 2014-201 I11.l,2.560 I l.321743 lA Iunds received durinL FY 2014.2015 271452 27.534 l11,568,412 11,349,327 4.2 D(.DGrant: DllD joined (joernient of Punjab and World Bank for implementaition of Punjab Education Secior Reform Programme in PESP-l (2009-12) with a gæant of £80 mi]lion ont of which 177 were marked for 1PES-! wilh WB iii l ine wvith DL Is and El EPs whercas £3 millon were kept by DID itsel fas T A. Now Dill) has come to Piuinjab with its biggest proyram in the world wK iti a grant of l"£-.3 miljon fdr PESP-Il for Si ears (March 1, 2013 to j Le 30, 210 19 imporartu higlights of ilie DII1) Progranme is the Lind lo meehanism. It las been agreed betweei GolPb and DFID that D11) will disburse aboult 50l fuinds to (IoPh as or-budget support whiereas rest swIll be spent by DFID jiself. SHS, PEF and PEEF allocations will be spent througŽh iGoverimenlt tuniding ehannels and wll be tmnsterred to GoPb, Provineul (oisolidated Fund Accoul-l) hrogh 5P131 and renauning lunds will be (utilized by DFII). Durinm- Jan io Junie, 2013. ftiet the effectikeness f the agreem1em. tund äl1ounting to t 25 million have been received fronil DF,I). Delail of the programllue Vitlh maj,11or sub components and expected disburseIemt >chedule is as flowi n: D11D has allocated £100 million for Sector Budgei Support (SBS) to GioPb which will be spent on aetivilies in alignmenm with DL-s of World Bank PI-SP-[l. DF1) tas a[located 68.6 million Aid to support PEF io make programme locus more on lo,w performan,e disirici i sou ith Kuinlab. DFID hls iwroduced a Credit Guarantec Sehene (CGs at a cosi of £9 n il1Ion u in1ac11ate hw cost pnle schols;educaion eii[repreneu rs in getting bank loans without iortgage. With £104 million DI 1) is Launching an ambitious infrastructure program in cdLicat]Oin seclor in 1unjab to eliminate missinu hieilities in schools. D1I) allncated £10.8 tillion th1rohell civil societ) programmrlie DI ID \vill be locUsing to enrol more ihan 54.100 e1hidien of margina lized segnient of sie ety. An amI uunt of £1 8.2 million has also been allocated tIrourigh PfIF an d LU[MS to provide seholarship to taleted student from poor and disadvantaged background. Dill) suil retain £39.7 million 1o be utilized as technical assistance througlioul ilie program mainly to line two consiltany flirms lor infrastrueture deelopimiemii program and Ilaiagemeiit slppori comnponenl. Funds received under DFID Grant FY 2012-13 £ ts in 000s AnmoLIt credited by SBP on J ulh 3- 2012 1500.000 221.156 Amout crediled by SBP on September 12012 5,000.001 74416 Aiount credited by D ID on December 26. 2012 7.000,00 10 9,054 Total DFilD Grants received during FY 2012/2013 for PESP-l 13,500,000 2,080,526 Funds received under DFID Grant Amount (redited by the SBP on March . 2013 (SB3S gompone) 2C00Q000 2.69.262 Arnount ii Credied by the SB [1P on March , 20 13 (1 PEE Componen 5,000.000 742, ) 6 Total DFi) Grants received during FY 2012/20 13 for PIISP-Il 25,000,001 3,711,578 Funds received under DFID Grant FY 2013-14 An3mu1 eredited by SBP on July 30, 2013 (PEF) 100.000 23137 Aiouint credited by SP31 tiin December 12, 20l]3 (PEFI 5,000,00 883.216 Amout credited by SBL> on December 13. 2013 (SHS8 45.300.000 8,032.356 5 1,800,000 9,147,509 Funds received under D.FID Grant FY 2014-15 Amon credited by SBF1 on December 17. 2014 (Pl-) 12,00000 1,897.380 Aimount credited by Sbl> on December 2 2(1 (S18 32,l00.0U0 5.076.5213 Amounlt credited by SBP on October 03, 20 M [F) 2.3<0,0 1 3(P 15 46,400,000 7.356,998 4.3 GoPh Rvecipis: see Para 5,2 of Punju b Govt. tinancing I- 5 Pa nments Donors hw\ve identilied pavient:expenditure under certain budget heads as lIligible Expeiiditure Prograime (EEPs) and hame declared that expjenditure under IEPs is eligible to receive funds from Ihem. These uiids are disbursed on reimbursemeint basis except for TA [unds which are disbirsed on1 advance basis. TA funds are, there f[re. mentioned as closing bakilice at the end of the period. Fliible ExpeIditure Programme (LEPs) comprisin cf: Salar related expenditure. School Co,1uoncil (SC) Grants. Gis Sti pends Pur[ormancelsed Incentyes, Schoul Moitoing. [iit budget lines .f PEF as declared so by Donorrs 5.1 Payrment from Donors Financing Sub-Comoniltent 2014-15 2014-15 2014-15 Prograime Activities USD GBP PKR in '000' IDA- EPs I 1.2%6560 l 1.321,743 IDA- TA* 1.4i6.970 141,97 DF1D __ 46,400,000 7,356,998 CIDA DIRECT PAYMENT BY WORLD BANK* 398.712 wY71 Tota 1 l l 3,112,242 46.400000 18,860,309 (Pi. see note 5.2.7 of l A far detiled expenditure under 1 A cemponent) * 1, see note .2.7) 5.2 Payinlents fron GoPh Funds Punjab Goverrnient Financing for Eligible Expenditure Program Rs in 000s Rs in 000N (EELPs) 2014-15 2013-14 Salary related cepiises (Note 5.2.1 ) 15116 1 70 146.486930 Gramt to unjab Educatio IOunaLidion (Nuie 52) ,911.201 7 ·83. 182 GIr Stipend (Note 5S2.3) 59,811 1.86.23 Grant to School CounciIs (Note 5.2.41 i55,620 870.360 l acher Incentive under HIlgh I mprovers Prograinie (NowI 525) 21.1 03 45,293 Monitorin System - C hlief Miinster Monitorin Force (No.e 5.2 261.512 25 3I- 43 Gov. financing for EEPs Total 163,7703720 156.325,039 Apa ment through SDA (Noe 52.7) 141,697 1 12,823 Direct payment by W[1(Note 5.2.7) 39.87 1 13565 TOTAL 163,95!,288 l526,5 7227 Less: Funds provided by Developnent Partners under: Openiing hal. US 2.8 m as at July 1, 2013( 201 4:3 m) 278.c25 325.768 IDA: FY 2014'2015: US $ I 1.30 in and total T A receipt of US SO 67 I 1,389,198 l 1.77,765 million (2014:JS S 117.87 m) l 1.668,123 12.1 2,33 DFID Grantf£46-4 million received in FY 20 14 20 5(20 14: fS 1.8 n) 7.356.998 .147.509 CIDA Grant: l unds received from Development Partners 19,025.121 2 1.250.042 Expenditure of Government of Punjab own financial resources 144,927,16 _ 3 5,322,385 5.2J Salary reluted Expendilure Salar related Ex\penduiire is te biggest expeiduriue under lL Ps as ii i a ellgble to consume majr par! of the lrunding b 1 te donors. It bas been agreed that 70W, eredit proceed will be allocaelato reated e.\penditure and the remining 30% ol fundin will be disbursed Kr olher acivities of .lPs. Salarn relared expeiCLIure include.s .91- Prirar Education and 092- Secondary Educatioi uIi ricial and District salaries under School Lducatioi Depar-timenit. [he o1 erigial budget allocated in the FY 201I budget r Saar re]ated ependiture [fo primar anid secondary educatin was Rupecs I 7065 billion. 1lowever, onI Rs.1511) billion could be utlized ai: nsi Retsed budget ofRs. 166.83 billion. \nn e ) 5.2.2 GIrani to Punjab Educaitior F'oundation PI was established in 1991 and restructured in 2004 as an atltoinom1utits Not For Profil etilyl to provide technical and 1inancial assistance for the establishiment, expansiont. improvemenlt and mnanagemileit of loNk Cosi educationlil stiuoonIs. ceeltives to students and leachers and pronioi of qua]ity educaion in tc Pro ince through Public- PriNate parittership. Grants are released to the Punjab EdLicuatIon I und in qiarterly åistallments io the Personal Lxdger Accoun it miaintainled with the Goverriuinnt I rcasury, operated b the Managing Directur f lite l¯oudati.r Developmemt Partners have dentiled ceiiin expetid ture lines iii PEV budget thal have been de-ign:aed is [Lroe1 IV.penlditLre Programnie (ELEPs) of PEF For tiese li Ps beads. PEl allocated i amoint of Rs 8 99 hililot. rul ot total budget, expenditure amourntilg to Rs.91 hillin w as inCrred durin I- Y 2014-l I 5.13 Girls Stipends Under Punjab Lducation Seetor Relorn Programme. Govenment (i PunJab is im plening r n aclivts that o1 ets cash stipends to girls of grades (6-JO0 of government schools in seleeted distriets with the objectives of improviNl enrollmeont, increasing reLention, reducitng gender dispartes and cieein femule prestige. Currently., the prograin iI distribUtin s!ipeJdls aruLnJd Rs10 billion to 380000 girls enolled ii grades 6- 10 in i ernien schools in 16 di l ,puinjab. hbe bene lciary girls are paid at a fiat tate of oRs. 2400 per- ear, in tour equal quirterk pInients suLbIect to * Ilie condilion of 80% alendance rale during i te period. Thle stipend program i belrig adi ni stered ihrougI district educat ion id ii iist rat ions and del ivered r hrough goverintm posta sn ice system. 1 e original budget allocated in die FY 2013:2014 hudget for Giris Stipends nvas Rupees 1.5 billion and retlected under Grant No PC21015(015 - fl t2-Admintistrat ion-Q 4481 ilead A03977. Huos eser, ei Rs.0. 85 billhon could be utilized ainst Revised Budget of Rls L 6 billion. 5.2.4 Grants to School Councils School Couniels have been frulated for strenietieing tie capacit\ ut and km wering cotn i es to support iotnitor, and promote school perforianec. Linder }utjab lidecation Sector Retormr1 Preograthere iliere almost 49 thousand school councils morknz ii primary, model primir> & niiddle schols ol 36 districis of Puijab. These sekols are ettin annual grants of 20,000 lor pritilarn. 40.000 for mode priniar & 5(,000 or middic schtools. Ile orivimn-l budet allocated in the FY261 4.201 I for this actis ity was Rupees 700 million and reflectei under Grant No. lI 92 I02Adminttration 10 4481 HeaJ A03975. A total e\pendittrie of Rs 555.62 millioni was incurred in FY 20142015. 5 2 Performance Båsed Incentives 'lie pilot Improvers' School Bonus Programne sas lnittated by PMIVS[ED] in N:Y20101 l as a tire sear prograTIme in three districts uider thle Punah Education Seelor Project (PIESP. 1 ts purpose was to award incenti ves to low-performinig schools in poorly-performing distriet. with tb :im io inureasiig eirolmen t in sebIrs and improvino student learnn I3 OUtcom1es. At lie conclusi of the tlrec ear term in1 20 1 3, tie pilot was extended for a luriher year. Also in 20 13, it was decided to re-design the programuime i the ligit cI lessons leurnI in elie fist three yeas, Lnd to pilot the re-desigoned programnime in irece new districts. Ihe origina budget allocated under ead A>] 295- Teacher lincentie under hlgh mprosers Proraimme in nc [ros iticial Ildgel for FY 213 2014 "as Rupece 1 50t00i nillion and reflecred inder Grant No. PC2 10 15(015>)2102 Adminiiistrarive-lQ 4481. l otal amunt of 6l,00 ) imfllioi cs released out ofswhieh only Rs 21.103 millionl was utiled as leliecied in the BER ofJtIne 2015 5.2 Chief Miniser Mionitoring Force (CMMF) GoPinjab plans te address shortflis tn outcomes mainly by sirienhiniig go:ernance and accoutabilt. T}ie quiet corrupi ion froi Ilie underleformIance of service dclIvery agelits is a major conceri. 1 lh most 'ort nanifestation of Underpcriimancc is absence from work ducation niiagiters al VariuiWs levO mav not carr\ out their dmiinisrative ,moitoriig. and support responsi biities and roles as expected. se GoPunj ab plans to delcit and address these risk~ flrough the (1 momtrioring of school stall peLrfiriLC by comultlhinitics tliriOuCh school counci. 2> regualar uillctiori of credic infot0rmation on teacher absenice and teaclier oi-task hrough CMiFl school inspe1t1ens and feeding the íilormation back to internal and external stakeholders and decisionl makers al multiple level . spenditure amoununI to Rs.26l.51 million was ncurred durim FY 2014.2015 under Grant No. PC2101 N01 )2102Adinistratise-LQ- 4493. 5.2.7 Technical Assistance ]DA credit proceceds are periodically to disbursed on idvance basis auainst lCrecast by PMIU SED. Ilie funds are transterred to GoPI: Accon-I by S1lP accordinil. Whercas flunds tr all direct payments are placed with the World Bank tt make pay ment ou behalf of GoPb. LA componeni is executed ltrougli a Special Drving Acoue (SDA) and lunds allocation is done by GoPutnab aS rart o reg lab Lidget of PMI U.DA Cred i1 proceeds ha heen u]i ized ler the 11l. lo aci ities on account af Techi ca] Assisotace as pros ide d bs Go Puijab ti rough Si IA to PM IC RIs in 000s 2015 iCremem tal lA saVlit. 1_ g62 Capacity Building 22g35 ixpenditure Tmackig TPVs . Total lA expendrture from SDA 141,697 ;\ expunditure bv World Bank (THird pimty payment USD 398712 ),9.871 Total FA expenditure 181,568 Conversion ratel PKR 141 .o97.0OD -- LISD 1,4 [i,07o t 1 SI) PKR 100 TA componeni Lompiises of thrce heads i.c. (i) [inreiental lA stIlTiig- ineludes indi iv idual contsu ltants remonermtieonii) Capacity Building- incIludes Irining workishops, Iri n of coisuhtanc, tiris Ir exe tion of diflicul assIeiienits. 11 aLso inludes M/S Cambridge Elducation CL), ani iimeriaitio.nal consiLtant. engaed to provide sectoral suppurt to S ED PM I U. The price of agreement , ith Cambridge Ed ucLltil ( CE1) has tvo ports i.e R. 1 25298422 and USD 4.983.897 (direct paymen portion). For payment of Freign currenieV portion of agreement writh M.S Camibri1ge Eduion (CLd. internatioial censulting rmi of PM l. World 3ank makes direct pLyments (third pat paiyme) tu 0- on request of PMI and GjoPh. This sear. 01 suLbmi ssion of satisfactr pregress on agreed deliserabmles tone paNment anionting to S [DoIllr 398,712 i.e. KR 3987 million (as per detiiled above in Para l1 wseC made to Cambridce Ediucation by World 13ank em aI cc of PM I U. ls Lilm)ut has been booked under object hieid Capacity Building (A03982). (iii) Expenditure tracking TPV- includes expenditure incurred on hiring of trmi or coIvsuIiat i review, vaidate or impalc evaluations cenducted b1 thlird parties cUIIracted b GoPluniJab. The origin1 budget allocated in Ilie FY 2014/20>J 5 bodget for TA was Rupees 505 million. lowes er. only Rs. 14 1.70 million could be tiilized iaLinst Revised Budget of Rs. 490 million. l A expenditure RS. I81.57 million inclides Direct pyr ment amiountiig to Rs.39.87 milliun. Detuil of funding from 1 DA in TA conponent and its disbursenenti is as follns: Funds received under IDA Credit No. 51060-PAN FY 2012-13 UISS lks in 000s IDA Funds recuied during FY 2012 2013 4.86 084 474,915 TA expenditure 776,196 74,389 Dtrect pa met made bs World L3ank on March 05. 20 13 249,145 2_1919 L) irect pa iment iade by World Bank ou March 07, 20 13 249.195 24,919 Direct payient made by World [kmnk on March 07. 2013 249.195 24.920 Total Direcd Payments made i WB froni TA 747,585 74,758 Less toial expenditure 1523,781 149,147 Balance as of3 une 30, 2013 on account of TA 3303.203 325,768 Funds received under IDA Credit No. 51060-PAK FY 2013-14 Open ing 13alance as of J uile 30, 20 13 3,303..203 325..768 IDA FLunds received during FY 2013!20I4 2,[6, 82 200545 5,320,055 526.313 Diret pa men made by World Bank on Jan 13, 2014 418.551 44,855 Direc1 paymem made bv World Bank on Jan 13. 2014 448.551 44, M5 Di rect pa nem made b, World Bank on March 04, 20 4 44851 44.855 Total Direct Payments made by W It froni T A 1,345,653 134,565 Total expenditure 1,147,728 1 12,823 Balance as of June 30. 2014 on account of T A 2,826,674 278,925 Funds received under IDA Credii No. 51060-PAK FY 2014- 15 Otpening Baulcie as ofJune 3U, 2014 2,826,674 278,925 IDA Funds reccived durinL FY 2014,2015 (Nole 4.12) 670,564 67,455 3,497,238 346,380 Direci paym1e1nt made b World Bank oi April 20, 201- 398,712 39,871 Total TA expenditure 1,416,970 141,697 Ba lance as ofJ une 31, 2115 on accouni ofTA 1,681,556 164,812 o Closing Balance Closing balance colprises: )escription 2013-14 21114-15 kS Rs. (in 00M) 11s1 Rks. lin 000) Cash at Bank 2.820.64 278025 1.681.556 1 64812 Cash at Bank (GoPb Share) Total 2.826,674 278.925 1,681,556 164.812 7 Reconiliatiiin of Guii Accounis As per PIERA generated budgel execution repori (BER) of sub function 091-Pre and Primarv Ediution and (192, Secondary Eiducation fr 1inancial year 2(14-15 (authenrtieed cops attached il ainexure-D). GoJ t. ol the Puniih älliocated 'an aml1ou111 of RS.183,984 million fhr EEHps and IA of PESP-1 1 for l'Y 201,1- A toial anoum ol Rs163,952 million was s against the ret eed budget of Rs.178.72 milior and Rs.14.76 nillon were lapsed during FY 204-15 8 Nnagement Assertion This is eer[ wc] tie I tLild had he becu liizi7ed for intended pkurpose acs deined ii ProJcI Agrecement a,s well as Finncing Agreement of the Punjab Educatnin Sctor Projec-il PESP--II) bearing Credit No. 51060-PAK for the hinancial y ear 20 [4-15. (A nie-F) 9> Aulhorization Ihese Ii nancial statements w ere authoriied (or issuance b mlanlagileti(elt the Piuab Education Sectr I¢errms Pruurunmme. DEL DIRECTOFR VINANCE 1 PROGRANIIE DIRE liOl .ASSISTAN 1 DiR1Ek 1CT (A0 Dit)