AUDITOR'S REPORT The Secretary Ministry of Primary and Mass Education Bangladesh Secretariat, Dhaka. Subject: Audit Inspection Report on the accounts of "Primary Education Development Programme-III(PEDP-III)" financed under ADB Loan no. 2761- BAN(SF) & IDA credit No. 4999-BD and other Development partners Aus-AID, CIDA. DFID, EU. SIDA,UNICEF & JICA for the year 2017-2018. We certify that we have audited the financial statements of the Primary Education Development Programme-rn for the year ended 30 June 2018 under Article 128(1) of the Constitution of Bangladesh. The financial statements comprise a financial statement and explanatory notes. Management Responsibility: Management is responsible for the preparation and fair presentation of the financial statements in accordance with Bangladesh financial reporting standards prescribed by the Comptroller and Auditor General as per the Constitution 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. The PEDP-III Programme Office is to prepare the financial statements following the country system of accounts and reconcile these with the accounts of the Republic maintained by the accounts office. Auditor's Responsibility: Our responsibility is to audit, certify and report on the financial statements in accordance with Article 128(1) of the Constitution of Bangladesh. To the extent possible within the limited period of time available, we conducted our audit in accordance with International Standards for Supreme Audit Institutions (ISSAIs), which include the International Standards on Auditing (ISAs) in their entirety. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. We are also required to obtain evidence sufficient to give reasonable assurance that the expenditures recorded in the financial statements have been applied to the purposes intended by the Parliament and the financial transactions recorded in the financial statements conform to the authorities who govern them. 6 Scope of the Audit of the Financial Statements: An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making the risk assessments, the auditor considers internal control relevant to the preparation of financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used, as well as evaluating the overall presentation of the financial statements. In our opinion, the Financial Statement gives a true and fair view in all material aspects and the Financial Statement is prepared in accordance with the cash basis of accounting followed by the Govt. of Bangladesh. Report: We conducted seen and discussion on the audit findings and management related issues with the concerned authority on 14-03-2019. Moreover, an Exit meeting with all the relevant stakeholders held on -03-2019 and then finalised this report. (FirokmV) Deputy Director & Audit Team Supervisor Telphone-02-9331027 Foreign Aided Project Audit Directorate. VA 14 ThIrd l ri:T*fatT r-duca5ion Dt..N: s m Qt mm (I i» !)t,n Financial S atemont nt 201/-18 30th June-201 8 (Figure In Lakh Taka) Besources Notes Cumulative Current Cumulative Current -....... Prior Perlod . Perlod Period Govemment of Bangladesh 1 4,620,906.24 1,301,277.19 5,922,183.43 Sub-Total 4,620,906.24 1,301,277.19 5,922,183.43 th5 Worl&Bank/ID. 2 307,838,06 220,899.73 528,737.79 Aslan Development Bank 2 255,843,85 28,610.90 284,454.75 DFID (United KngdómUKAID) 2 142,471.50 ··2 30241 144,773.91 Eurdpean Union (EU) 2 24,978.É4 23,414.49.. 48,393.33 CIDA 2 29,614,81 5,442.92 35,057.73 Sida 2 27,553.76 27,553.76 UNICEF 2 394.35 83.70 478.05 JICA 2 16,500.75 3,223.82 19,724.57 DFAT (Aus-Ald) --30;932>7- -2;595:22 33,527,89 GPE 2 15,680.00 57,917:50 73,597.50 Sub-Total 851,808.59 344,490.68 1,196,299.27 Total 5,472,714.83 1,645,767.87 7,118,482.70 JICA (DPA) 6,257.90 6,257.90 UnIcef-Account-(DPA) 14,172.38 3,502.10 17,674.48 Sub-Total 20,430.28 . 3,502.10 23,932,38 Grand Total 5,493,145.11 1,649,269.97 7,142,415.08 0 Expenditure anCash 0 Developrnt Exp'enditure-s 0 Lerning & Tr bidng- 0 .emlig & teaching 164,337,36 53,377.10 217,714.46 Participation & Disparaties 927,573.05 301,502.88 1,229,075.93 Decentralizaton & Effectiveness 132,996.00 51,690.74 184,686./4 Planning end Management . 25,176.51 6,683.35 31,859.86 Sub-Total 1,250,082.92 413,254.07 1 : G.99 Less: Actual Outstanding Advance 18,359,59 - 18,359.59 ivlopment Expenditure 1,231,723,33 413,254.07 1,6 4,977.0 i4on.Levlopment Expericifture4 Pay of Offloers 61,799.86 . 17,427.28 79,227.14 Pay of Éstablishment 1,987,613.89 591,629.82 2,579,243.71 Allowances _1,593,926.82 499,716,86 2,093<643.68 Suppiles and service 197,154.50 84,652.52 281,807.02 Repairs and Maintenance 37,587;41 9,938,52 47,525.93 Grants in Ald 178,059.08 - 178,059.08 Revenue General -- Capital expenditum 184,799.47 28,685.03 213,484.50 Civil Works 50.47 463,78 514.25 Customs Duty & VAT SubTotal No-Drveopmfnnt .xendture 4 0,991.50 ? ,513.8 5,473,505.0 JICA Actlvitles (DPA) 6,257.90 ,- 6257.90 Unicef Aotivities (DPA) 14,172,38 3,502.10 17,674.4b Su.Total D ..A Expenditure ,430.2 3,, (FIgure In Lakh Taka) Resources Notes Cumulative Current Oumulative Current Prior Period Period Period Grand Total Expenditure 5,493,145.11 1,649,269.97 7,142,415.08 Gash.Glsing -Blance Operåting Account (RPA) Op9rIng. AcOun OB) AcoMn Curent (CD VAT) Unicef Account - JICA Totel Expendture & Cash 5,493449.11 1,649,269.97 7,142,415.08 Mahesh Chan Director ( Inance Section 2, Mirpur, Dhaka 1216 Phone- 55074914 -g- is,s cJ Third Primary Education Development Programme (PEDP 3) NOTES OF FINANCIAL STATEMENT 70th June-2018 1. GOVERNMENT OF BANGLADESH 4und are allocated by the Government of Bangladesh to cover GOB,s Share of eligible project expenditure, as pecified in the Project Proforma and in the Annual Development for each of the project, Any allocated funds hat have not been expended by the end of a fiscal year lapse and must returned to. GOB, GOB contribution to he project since Inception are as follows (In lakh Taka) Description Notes Inception to For the year inception to 30 th June 17 2017-18 30th June 2018 Disbursement-by GOB 1 4,620,906.24 1,301,277.19 5,922,183.43 Less Refund to GOB - Total 4,620,906.24 1,301,277.19 6,922,183.43 Total Expenditure 2. LOAN FROM DEVELOPMENT PARTNER The IDA, ADB, DFID, EU,NORAD, SIDA, CIDA, GPE, JICA, and UNICEF has provided funds to the project to cover its share of eligible project expenditures. These funds, which must be repaid to (name lender/doner) after the conclusion of the project have been drawn by the project In accordance with the following withdrawal prcedures (in Lakh Taka) Description Notes Inception to For the year Inception to 30 th June 17 2017-18 30th June 2018 DPA (Direct Payment) 2 RPA (Non SOE Procedure) JICA 6,257.90 - 6,257.90 RPA (Non SOE Procedure) UNICEF 14,172.38 .3,502.10 17,674.48 Sub-Tot,al 20,430.28 3,502.1.0 23,932.38 Dohfr Fund (Budoet Support) the World Bank/IDA 2 276,298.06 220,899.73 497,197.79 Asian Development Bank 2 282,807.31 . 28,610.90 311,418.21 DFID (United Kingdom-UKAID) 2 130,323.68 2,302.41 132,626.09 European Union (EU) 2 36,401.17 23,414.49 59,815.66 CIDA 2 34,916.84 6,442.92 40,359.76 Sida 2 27,553.76 - 27,553.76 UNICEF 2 394.35 83.70 478.05 IICA 2 16,500.75 3,223.82 19,724.57 DFAT (Aus-Aid) 2 30,932.67 2,595.22 33,527.89 GPF 2 15,680.00 57,917.50 73,597.50 fub-Total - _ 851,808.59 344,490.68 1,196,299.27 TOTAL 872,238.87 - 347,992.78 1,220,231.65 3.OTHE N Other resources consist of the following A "d i:. sri'ption Notes Inception to For the year incepion to 30 th June 17 2017-18 30th June 2018 Project Revenues Exchange gains losses ITotal 4. CASH The project maintaind Bank Account in the Bangladesh Bank as a Cosulated Fund Account. Year end cash balances were as follows (In Lakh Taka) Descrit ~io . Notes inception to For the year inception to 30 th June 17 2017-18 30th June 2018. mprest Accour.it- alance in Field Level - O perating-Acp9umt.(RPA).- ôut urit(CDJNAT) -__________ -______________ perating Accdunt (GOB) 1Total Mahesh Cha r Director inance Setion 2, Mirpur, Dhaka 1216 Phone- 55074914 Ik