Financial Attest Audit Report On the Accounts of Second Sindh Education Reform Project, (SERP-II) World Bank Loan/Credit IDA No.5218-PK Education & Literacy Department, Government of Sindh For the Financial year 2017-2018 AUDITOR GENERAL OF PAKISTAN ISLAMABAD TABLE OF CONTENTS Preface Abbreviations & Acronyms PART - I 01 Project Overview 02 Auditor's report to the Management (Audit Opinion) 03 Financial Statements 04-20 PART - I 21 MANAGEMENT LETTER 22 EXECUTIVE SUMMARY 23 1. INTRODUCTION 24 2. AUDIT OBJECTIVES 26 3. AUDIT SCOPE AND METHODOLOGY 26 4. AUDIT FINDINGS AND RECOMMENDATIONS 27 4.1 Organization and Management 27 4.2 Financial Management 32 4.3 Procurement and Contract Management 38 4.4 Overall Assessment 40 5. CONCLUSION 41 ACKNOWLEDGEMENT 42 ANNEXES 43 PREFACE The Auditor General conducts audit in terms of Articles 169 and 170(2) of the Constitution of the Islamic Republic of Pakistan 1973, read with Sections 8 and 12 of the Auditor General's (Functions, Powers and Conditions of Service) Ordinance 2001. The audit of Second Sindh Education Sector Reforms Project (SERP-II) World Bank (IDA) Loan/Credit # 5218-PK was carried out accordingly. The Directorate General Audit Sindh conducted audit of the Second Sindh Education Sector Reforms Project (SERP-I) World Bank (IDA) Loan/Credit # 5218-PK from 9" January to 22d January, 2019 for the Financial Year 2017-18 with a view to reporting significant findings to stakeholders. Audit examined the economy, efficiency and effectiveness aspects of the Project. In addition, audit also assessed, on test check basis whether the management complied with applicable laws, rules and regulations in managing the Project. The audit report indicates specific actions that, if taken, will help the management to realize the objectives of the Project. The observations included in this report have been finalized in the light of discussion in the exit meeting. The Audit Report has been prepared for submission to the International Development Association (IDA) in terms of Loan Agreement IDA Credit f 5218-PK. Dated: o 5/03/2019 (Fatch Muhammd ureshi) Place: Karachi Director General Page i Abbreviations & Acronyms ADEO Assistant District Education Officer ADP Annual Development Program AFS Annual Financial Statement AG Auditor General AGP Auditor General of Pakistan ARE Assistant Resident Engineer DAO District Accounts Officer EAD Economic Affair Division ERP Enterprise Resource Planning FO Field Officer FY Financial Year GOS Government of Sindh GRM Grievance Redress Mechanism IDA International Development Association IT Information Technology IPSAS International Public Sector Accounting Standards M&EC Monitoring and Evaluation Consultants MDG Millennium Development Goal NER Net Enrollment Rate O&M Operation & Maintenance PRSP Program Requirements Support Plan PD Project Director PAD Project Appraisal Document PDO Project Development Objective PLU Project Implementation Unit PSC Project Steering Committee PSIAC Project Supervision and Implementation Assistance Consultants RSU Reform Support Unit SAP Systems, Applications and Products SERP Second Sindh Education Sector Reforms Project SID School Infrastructure Development USD United State Dollar Page ii qI PART- I 1. PROJECT OVERVIEW 2. AUDITOR'S REPORT TO THE MANAGEMENT (AUDIT OPINION) 3. FINANCIAL STATEMENTS Project Overview Name of Project Second Sindh Education Sector Reforms Project (SERP-I1) Sponsoring Authority World Bank and European Union Executing Authority Government of Sindh Date of Approval March 14, 2013 Date of Commencement March 01, 2014 Date of completion June 30, 2017 (Extended till December 31, 2018) Actual Date of Completion December 31, 2018 Total Project Cost as per PC-I US $ 2600 million IDA-Loan No.5218-PK US$ 400 million European Union Euro 30 million Counter Part Fund US$ 2200 million Progressive Expenditure up to PKR. 429,754.00 million June 30, 2018 Expenditure during financial year PKR 108,570.00 million 2017-18 2 AUDITOR'S REPORT TO THE MANAGEMENT We have audited the accompanying financial statements of Second Sindh Education Sector Reforms Project (SERP-II) executed by Reforms Support Unit Karachi, IDA Loan Agreement No # 5218-PK, & DCI-ASIE/2011/023-009(EC) that comprises of statement of receipts & payments, statements of comparison of budget & actual amount, together with the notes forming part thereof for the year ended June 30, 2018. It is the responsibility of Project Management to establish and maintain a system of internal controls and prepare and present the statement of receipt and payment in conformity with the requirements of cash basis IPSAS, financial reporting under the cash basis of accounting standard. The responsibility of the auditor is to express an opinion on the financial statements based on the audit conducted. The audit was conducted in accordance with international standards of Supreme Audit Institution. Those standards require that we plan and perform the audit to obtain reasonable assurance, whether the financial statements are free of material misstatement. The audit process includes examining, on a test check basis, evidence supporting the amounts and disclosures in the financial statements. It also includes assessing the accounting principles used and significant estimates made by management as well as * evaluating the overall statement presentation. We believe our audit provides a reasonable basis for our opinion. In our opinion: The financial statements present fairly, in all material respects, the cash receipts and payments by the project for the year ended June 30, 2018 in accordance with cash basis IPSAS, financial reporting under the cash basis of Accounting standard. The expenditure has been incurred in accordance with the requirements of legal agreements. Dated: 0 /03/2019 (Fatch Muhamr aQureshi) Director Ceneral 3 FINANCIAL STATEMENTS 4 Second Sindh Educntion Project School Education & Literacy Department, Government of Sindh Credit Account No. IDA 5218 -PK &DCI-ASIE/2011/023-009 (EC) Statement of Cash Receipts and Payments for year ended 30th June 2018 2017-18 (R in Million) 201617 (Rs in Million) Receipt/Pay Paym Receipt/Pay Painym CumulatIe ments ents Cnedts eats (Till 301' Controled by Conrolkd by June 2018) by Third Third No Governmen Pa C overnmen RECEIPTS to V r t e Governient of Sindli 13 107,668 95,140 393,566 IDA - Eligible Expenditure 14 - 3,335 32,813 Pmgram & TA Graits from EU 655 - 3,616 Total Receipts 108,323 98,475 431,000 PAYMENTS (By Components) 1. Eligibe Expenelfure Prograns 107,231 417,952 Fnployee Related Expenditure IS 95,307 Standardized Achievement Test - 6 29 149 532 Grats to School Manageient 1,127 4,661 Committees (SM C) Public PrIvate Pntmiip is 1,936 4,929 Schools specicBudget at (091 & 116 860 092) Monitoring/SBMIM 20 14 7 37 2, FechniclAssistance: Incrmerntal TA sunfing 21 29 316 Capacity Building 22 3 74 Expenditures Tracking/Monitoring 23 21 Total Paynent 108,570 93,475 429,154 Toti llwicrcnsc/Docrease) in (247) Cash Cash at the beginning of the 247 247 year IncruarcADecrcsv) in cash (247) Cash at the end of the year 247 The annexed notes I to 25 form an integral part of these financial statements Second Sindb Education Project School Education & Literacy Department, Government of Sindl Credit Account No. IDA 5218 -PK &DCI-ASIE/2011/023-009 (EC) Statements of Comparison of Budget and Actual Expenditure by Object For the year ended 301' June 2018 T otal Total Budgeted Amount Varinnee txpenditure Expenditure 4 Partleulars Release Note Orial F2017-18 2016-17 Amount Enoloyee related expenditure At Primary 47,246 61,472 61472 59,406 55,079 (4,237) (3%) Functional4 At Secondary 64916 45,787 45787 46,192 39,402 (6,790) (17%) Functional At Administradion 4,146 1,632 1,632 1,632 826 (806) (98%) Lovel Sub-total 15 116,208 108,891 108,891 107,230 95,307 (11,921) Eligible expenditure Program-Other than Salaries Standardized 16 200 100 100 29 149 52 15% Achievement Test School 17 1,500 1,127 1,127 1,127 930 (197) (21%) Management rant to Sldh ..1,936 1,936 100% Education Others (Schools 19 3,114 833 833 116 146 30 20% speelfic Budget at Monitoring/SEMIS 20 100 50 so 14 7 (10) (133%) Sub-total 4,914 2,110 2,110 1,286 3,168 1,812 Techilal Assistance Incremental TA 21 100 100 80 29 (29 Statina100% Capacity Building 22 50 25 25 3 (3) 100% ExpendLure 23 250 250 200 21 (21) Tracking 100% Sub-total 400 400 305 53 100% Orand Total 121,522 11 1,402 111,306 108,570 98,474 (1o165) (10%) PPRS - - 1,936 1,936 100% The annexed notes I to 25 fbnn an integr part of these financial statenents. Second Sindh Education Project School Education & Literacy Department, Government of Sindh Credit Account No. IDA 5218 -PK &DCI-ASIE/2011/023-009 (EC) For the year ended 30 June, 2018 Notes to the Financial Statements 1. REPORTING ENTITY AND IMPLEMENTATION ARRAGNEMVENTS. Agreement dated 28th November 2014 entered into betwec the INTERNATIONAL DEVELOPMENT ASSOCIATION ("Association") and the PROVINCE OF SINDH ("Sindh") ("Project Agreement) in connection with the Financing Agreement ("Financing Agreement") of same date between the ISLAMIC REPUBLIC OF PAKISTAN ("Recipient) and the Association. Sindh declares its commitment to the objectives of the Project. Sindh shall cariy out the Project in accordance with the provisions of the ?roject Agreement. Provincial Govemment of Sindh (the Government) is the reporting entity which conducts its operntions under the Rules of Busifiess 1986.These rules were made pursuant to Article 139 of the Constitution of the Islamic Republic of Pakistan, 1973,(the Constitution) and envisages Provincial Government as comprising of departments and their attached departments. Institutional and implementation arrangements for the project build on and strengiben existing arrangements. Govt of Sindh has notified for the whole period of project on 10 December 2012 a steering committee (the "Steering Cotnmittee for SERP I) headed by the Additional Chief Secretary of Sindh, and comprised of representative from, inter alia, Sindl's Education and Literacy Department ("SED'). Finanec Department, the Local Government Department, the Accountant Genern Office and the Provincial Procurement Regulatory Authority, Which committee shall be assigned with functions, responsibilities, staff and resources in each case satisfictory to the Association, as shall be required for the overall strategic policy guidelines, interdepartmental coordination and oversight support to the implementation of SERP 11 by SED. The P&D, FD and ED and the Sindh Public Procurement Regulatory Agency (SPPRA) take the lead in (i) implementing relevant sub-Projects and meeting DLls and targets; (ii) tracking and reporting on all activities for which they have assumed responsibility; (ili) providing sectoral expertisc as needed. The RSU is responsible for coordination and monitoring of SERP efforts, and for the implementation of core provincial sub-Projects (including the Annual Schools Census, and the incentive Projects to public schools). It is headed by the Chief Project Manager who reports to the Education Secretary and to the Steering Committee. In addition, various provincial institutes,affilinted with the education sector have responsibilities for other SERP sub-Projects. Similarly districts have key implementation responsibililics for specific sub-Projects (e.g. rehabilitation works under the TOPs, preparation of merit ists and appointment of teachers), and in M&E. 2. BASIS OF CONSOLIDATION The financial statements have been prepared by consolidating the Salaries of all the employees working under functional classification 091,092 and 096, grants to Self-Acconnting Entity i-e Sindh iEducation Foundation and Other expenditure eligible for reimbursement. 3. STATEMENT OF COMPLIANCE These financial statements have been prepared in accordance with the New Accounting Model (NAM). In December 2000, Auditor General of Pakistan prescribed NAM with the approval of the President of Pakistan under Article 170 of the Constitution of Islamic Republic of Pakistan and the implemelation oi NAM is an ongoing process. However commitment, asset and liability accounting practices have not yet been implemented and memorandum registers for assets and commitments do not exist and accounting of liabilities is not done in accordance with NAM. 4. ACCOUNTING CONVENTION AND BASIS OF PREPARATION These financial statements have been prepared under the cash basis of accounting which recognizes transactions and events only when cash is received or paid by the entity. These fmancial statements have been prepared as per the requiretnents of NAM that supports international best practices. The statement of receipts arid payments, statements of comparison of budget and actual amounts by Object and notes forming parts thereof have been prepared on the format of Cash Basis IPSAS - Financial Reporting under the Cash Basis of Accounting. 5. REPORTING AND BUDGET PERIOD The reporting period for these Financial Statement-is July 01 2017 to 30th June 2018 and budget period of these financial statements is the financial year 2018-18 (from 1 July, 2017 to 30 June, 2018), 6. REPORTING CURRENCY The reporting currency of these financial statements is Pakistani Rupees. 7. SIGNIFICANT ACCOUNTING POLICIES 1. Revenue/Receipt recognition Revenue is recognized on the date of reecipt of money by the bank or clearance of cheque. Revenue is recognized on a gross basis and any felated costs are recorded separately. Receipts representing recovery of any previous overopyinent are adjusted against relevant expenditure, if it occurs in the same financial year. II Recognition of expenditure Expenditure is recognized on the date when payment is made or cheque is issued. Financial year to which the payments pertain is determined by the date on which a cheque or payment advice is issued. Policies for recognition of.expenditure are as follows; c. Payments made through cheque Expenditure is recognized on the date the cheque is issued. b. Inter government transfers Expenditure is recognized on the date the transfer Is made by the transferor. c. Payments directly In bank accounts Direct payments into bank account, expenditure is recognized on the date the payment advice is issued to the bank. d. Direct payments by State Bankof fPakistan (SBP) Repayment of loans and other direct payments by the SBP, expenditure is recognized on the date State Bank of Pakistan advises the relevant accounting office. e. Imprest payments Expenditure is recognimd when the reqlired claim vouchers are submitted and imprest account is reimbursed. M. Foreign currency Transactions in foreign currencies are recorded in the books at the rates of exchange prevailing on the date of transaction. Exchange differences arising on settlement of these transactions are recognized in the Statement of Receipts and Payments, but are not disclosed separately. IV. Cash and cash equivalents Cash and cash equivalents represent Advance by International Development Authority to the Donor and at the end of financial year this amount documentation is not provided to the IDA/World Bank. V. Assets Assets are f0ture economic benefits controlled by the government as a result of past triasactions or other past eventsi Assets are recorded at cost and currently no depreciation is charged. VI. Payment by third Party The Government also benefits from goods and services purchased on its behal fas a result of cash payments made by the third parties during the period by way of loans and contributions, in the shape of grants and aid. The payments made by the third parties do not constitute cash receipts or payments controlled by the Government as defined in the Cash Basis IPSAS - Financial Repoi,ting under the Cash Basis of Accounting but do benefit the Government, as the Government does not receive cash (including cash equivalents) directly from, or gain control of the bank accounts or similar facility established for its benefit by, the third parties. Payments by third parties, if any, are disclosed in the payments by third parties column on the face of statement ot cash receipts and payments aad.notes to the financial statements S. PROJECT OBJECTIVE AND DESCRIPTIONS The Project Development Objective is to raise school participation by improving sector governanc and accountability and strengthening administrative systems, measure student achievement, the project supports the Sindh Governments Second Sindh Education Sector Reform Project (SERP 11). The toUil cot of the project SERP-1I is $2600 Million for which Sindh Government financing /share is $2200 Mllion nnd remaining $400 million is financed by World Bank. The project is a $400 million Sector Invesment Credit is structured around two components: Project components The project is a US$400 million SpecIfi Investment Credit which supports the implementation of SERP 11 over the period 2013-17. The project comprises of two components: (1) a results-based component- Component 1-which finances specific expenditures under SERP II, amountig to USS393 million (roughly 98.3% of the total Credit); and (2) a Technical Assistance (TA) componet-Conponent 2-which tinances essential advisory, technical, capacity-bulding, and monitoring and evaluation support for SPRP II, amounting to US$7 million. Project has been restructured and extended upto 31' December,20 18. Results-based component: Under the results-based component, the event and amount of project disbursements will be contingent on the satisfactory achieveiitent of DLTs. Component I represents the Eligible Expenditure Project (EEPs) and the credit amounts are disbursed on the basis of pre-specified results, referred to as Disbursement Linked Indicators (DLls). These disbursement linked indicators (DLIs) are shown In the table 1 below: Component 2: Technical Assistance fTotal US$ 7 million; fDA: USS 7 iillion] Component 2 represents Technical Assistance and it has a total US$7 million finance essential technical assistance activities to assist GoS in the implementation of SERP. Under the TA component, funds will finance important technical, advisory, and capacity-building support to strengthen fiduciary, environmental management, administrative, and monitoring and evaluation activities. The selected activities would aid Project implementation progress and performance including, importantly, the achievement ofDLIs. RSU will manage project TA funds and activities. RSU will make TA funds available and procure works, goods, and services to meet the needs of other government departments, entities, and agencies partnering on SERP-I1 related initiatives. Retroactive Financing of TA amounting to Rs 98.6 Million was financed by Govt of Sindh 'i the F 1Y 2012-13 was reimbursed after the effectiveness of loan agreement as per Financing Agreement. 9. DISBURSEMENT LINK INDICATORS (DLIS) S.# Sub Project Disbursement link Indicators (Lils) 1 Project budget and expenditure Preparation of sound budgets for management Primary and secondary education and SERP-11 initiatives and ensuring that budgetary releases and expenditures are made in full and on a timely basis 2 Annual School Census (ASC) Administration of the ASC for government schools on a regular basis through two distinct channels across districts, namely via a contracted third party and standard government process, accompanied by strengthened administrative procedures, procedures, and practices, and web-based direct reporting by secondary and higher secondary schools to improve the regularity, relevaice, and reliability of ASC data 3 Student Achievement Test (SA ) Administration of the SAT on a regular basis, Accompanied by third-party review to strenothen the reliability and validity of the test results nd the responsible use and dissemination of test r-ieults 4 School budgets: Preparation of school budgets, both salary and no salary components, following transparent, objeclive, aanL needs-based criteria; and third-party support to the districts for managing and monitoring the flow and use of school budgets in line with applicable rules and regulations 5 School Man agement ConYiitees (SAICs) Stronger due diligence and financial management controls; improved communication of expectations, roles, responsibilities, and redressed avenues to all key parties; support services offered by regions and districts to SMCs; and increasing grant use in line with applicable rules and regulations 6 School systent consolidation Merging of distinct government schools that share the same building, same compound, or are in close proxnimity and eater to the same local child population 0- into single schools and their reorganization and stengthening to function as single schools 7 School infrastructure development Investments in (i) the whole school development of schools with infrastructure deficiencies, (ii) up gradation of primary schools to elementary schools, and (iii) consolidated schools, following objective, tran;parent, and needs-based criteria: compliance with stipulated construction quality and school design specifications; third-party screening, support, monitoring, and certication of construction completion and quality; and pilot interventions on specific school environmental enhancements 8 Incentive- and accountability-based Incremental expansion of the SEF PPRS Project; publicfinancing of the private provision regularizatlon of Project financing; strengthened of selooling administrative and monitoring systems; strengthened design and enforcement of incentive and accountability conditions to improve school performance; and strengthened Project qualification criteria and the rigorous.application of rules and procedures to screen rural communities for Project school placement 9 Education management Appointment of specialized cadres of education managers and school headmasters following transparent, objective, merit-based criteria and rigorous mechanisms; contracts with perfortance terms and conditions; induction training, job guidelines, management materials and tools; and a tailored annual perornance evaluation process (within the government's standard performance evaluation system) 10 Teacher management Strongthened merit- and anedsbased teac esr recruitment arranghments, procedures, and practices; teacher contracts with performance terms and condition; induction trnininU, job Suidelnre, feschinrg imaterials and tools; and a tailored unnual performance evaluation process (within the goverinment's standmard performnce evaluation system). The E-Ps to be supported by the project account for about 84.6% of GoS's Project expenditures a.d Bank financing will support about 15.4% of EEP expenditures over the three year period of the credit. The Bank's guidelines on financial management and procurement will be applicable to EPs. The frameworks for addressing social and environmental safeguards endorsed by GoS will be applicable to all SERP activities. T' A41~ 1) Share (In US$ million) (In percent) Sindb government 2,200.0 84.6% IDA 400.0 15.4% Total 26000 100.0% Pricing of DLIs Amount in USD FY2013/14 FY2014/15 FY2015/16 DLPice ch 0000 a 7000,00 ea Amount allocated for Component 1 93,000,000 130,000,000 170,000,000 10, ELIGIBLE EXPENDITURE PROJECTS The details of Eligible Expenditure Projects (E4Ps) are sh aownbelow ih Table 2: Object Code Classification Expenditure Element Descript on or Object Classification A01 Employee related expenses of primary secondary and administration sub functions. A03966 Standardized Achievement Test A03975 School Management Committee Grants A06501 Public/Private Partnership Grants A03970 Others (Schoolt specific Budget at 091 & 092 Functional Level) A03973 Monitoring/SEMIS Object Code Classification Technical Assistance A03980 Incremental TA Staffing A03982 Capacity Building A03983 Expenditure Trucking / Monitoring 11. DISBURSEMENT CONDITIONS AND SCHEDULE The disbursements for Component I of the Project are conditional on the achievement of 10 refoun actions or results. These are identified as Disbursement Linked Indicators. In each cycle, the amount eli ible for disbursement will be the product of the total number of achieved Dls and the unitary DLI price. Were achievement of a DLI cannot be certified, an amount equivalent to the unitary DLI price will be withheld. This amount will be paid at any later date when such achievement can be verified. In case of partly met OL Proportion of that DLI would be consider met and remaining would be carried forward. The reimbArrement depends on the two factors first the Achievement of DLI and second is the EEPs. The verification sources mentioned in the project Appraisal document would be provided. 12. EUROPEAN UNION SECTOR POLICY SUPPORT PROJECTMEE GRANT: Objective: The Project will help to achieve the education-related MDGs in the Province of Sindh through improving quality and access in Primary and Secondary Education, Purpose: EU sector support will assist the Government ofCSindh to improve management and service delivery in the primary (including pre-primary) education sector. Total Sector Policy Support Project Grant from EU Would be 30 Million out of which 4.5 Million euro would be for TA, the grant of 25.5 Million would be available in FY 2014-15 & FY 2015-16 for revew of Triggers for FY 2013-14 & FY 2014-15. Government of Sindh must be in compliance with the General Conditions mentioned in the agreementto become eligible for this grant. Triggers covering Education Budget, Curriculum, Teachers Training and Students Assessment Executing education sector budgets in full and timely manner to increase level and qualty of education sector expenditures in line with education sector plan. Optimize government school facilities and resources and improve asset management throuh implementation of the School Consolidation Policy and Plan Curriculum Develop, approve, and operationalize Curriculum haplementation Framework (CIF) for Sindli. Textbooks: Review, notify and iiplement the Si ndh Textbook and Material Development Policy. Teachiers: All PST teachers are trained and supported in applying the 2006 curriculum Assessment: Student Learning Outcome assessments are aligned with the 2006 curriculum 13. RECEIPT The amount of financing as the GoS has arrived atduring the current financial year ended June 30,2018 as follows: Notei Rs, InI Rs In Million Million Finance by IDA/World Bank . 3,335 Finance by European Union 655 - Finance by Govt of Sindh 13.1 107,668 95,140 108,323 98,475 13.1 The share of Government of Sindh is arrived at after summing all the expenditure incurred rimd total increase/(decrease) in cash and then deducting from the funds received from IDA. oo 14. W~THDRAWAL SCHEDULE OF IDA Applied Sanetoined Aitldrawal Applcentton Type Amount i No. & Currency Amoun n Exchang Anount V t US/XDR DaeI era PR M in XDR SXRert K SSEP- Reimbursemnent I 4Junn14 98.57 98.57 SSEP-II Advance (TA/S) 2 9Jfun-14 98.57 197.14 2 SSEP-11 Reimbxirsenent 0.539 4-Junt-14 98,47 53.08 0.539 (TAR) --__ __ SSEP-IV Roinburseinent 60735 76.489 18-Jun-14 7,482 76.189 (DLI/XD6.3R6.8)1-un1 98.40 Receipts for the FY2014 79728 7,831 79.28 SSE-Reibaent 4.322 6,1945 6-Jan-15 0095 625 6.1945 SSEP-VI Advance (TA/S) 2 5-Jan-15 202 21 SSEP-VII Advarice(TA/S) 1.275 9-Jon-15 i01.9 130 1.275 Reimburse nt SSEP-VITI (DLY/XDR) 66.205 93.188 23-n-15 101.72 93,188 Recelpt for the FY 2015 102.66 10,436 162.66 SSEP-X eibMent 76.252 107.227 16-Jun-16 104.61 107.227 Recelpt for the FY 2016 SSEP-i ursei:t 4634 6,480 29-Sep- 16 104.70 678 6480 SSEP-XI n8.3 25.340 20-Jun-17 104.82 2,656 25.340 Recelpt forthle FY 2917 31,82 3,335 31.82 Recelp t for the FY 2018 - Total 321.1432 32,U18 321.432 15. EMPLOYEE RELATED EXPENSES FOR PRIMARY AND SECONDARY EDJCtI(ON Pay and allowanuces for district, regional and provincial employees of Educational Literacy Departnent ;n ur associated with primary and secondary education. These employees comprise of those in priniary (91 10?), administration of primary education (91103), secondary (92101), adininistration of secondary education (92102), and the Secretariat (96101). .1<Ä SALARIES AND EMPLOYEE BENEFITS Note Is. in Million Pay of Officers 12,825 10,203 Pay of Other Staff 58,848 51,086 Allowances 35,558 34,018 I17231 95,307 16. STANDARDISED ACHIEVEMENT TEST Thc full set of costs (145 Million), at all levels (province to school), for all stages (fron test dsign to data analysis and findings dissemination), associated with the annual administration of the SAT in selected grades in government schools. The SAT budget importantly covers the costs of the contrict offered to a third-party organization to undertake the SAT. The budget for SAT is assigned to RSU, and RSU is directly responsible for expenditnres incurred. During the year ended 3011 June 2013, Rs.29 Million was paid to Third Party. (2016-17: Rs.149 Million). 17. SCHOOL MANAGEMENT COMMITTEE (SMC) School Management Committee (SMC) Grants are transferred to commercial bank accounts of SMCs on the advice of Finance Department (FD) to the State lBank of Pakistan,through Accountant Gcncral Sindh aimed activating primary and secondary schools and to support school improvement. During the financial year 2017-18, total SMC grants are distributed as follows: ____ __________ _______ 201 _____2017 S.No. Particulars Average Average SMC TotaI ( SNIC Total (Rs in Numbers Fund In In Numbers Fund in Million) un Million) Rs I Primary Schools 31,315 22,196 695 27,541 23,124 637 2 Middle Schools 1,888 70,328 133 1,371 65,901 90 3 Higher 299 1203 Secondary 1,966 151,934 1,533 132,104 Schools Total 1127 30,445 930 18. PROMOTING PRIVATE SCHOOLING IN RURAL SINDH The full set of costs associated with the administration of the PPRS Project by-SEP. It includes the beaefits, cash and in-kind, offered to Project schools as vell as all Project administrative costs. All expenditures related to the PPRS Project administeredby SEF as booked in the SEF accounting system for the sole purpose of recording PPRS Project-related expenditures Public Private Partnership grants covers the subsidies provided to private schools for each child enolled as well as iniplementaticn, and monitoring. costs of the Promotion of Private School in Sindh (PPRS) Project. The amount of the subsidy is paid to student through Sindheducation foundation, tho sclection I S' of schools are made through public EOls, students arc paid Rs.350/- per child and Rs.450/- for each girl in die gender differentiated Project per month are paid. Head of Account Notes 2018 2017 School Support Cost Per Child Subsidy Cost - 1,687 Educational Material /Sports Material/Copies/Bags Cost - 155 Other Development / Programmatic Cost 9 Total School Support Cost - 1,851 Development I Technical Support Cost Learning Support Cost - 66 Assessment Cost - 10 Monitoring Cost Marketing Advocacy and Publication Cost Total Development / Technical Support Cost 85 Field and Operating Cost 0.36 Human Resource Cost lonorartum/Management Cost Fixed Assets - 0.24 Total UtIlization - 1,936 19. SCHOOL SPECIFIC BUDGET The full operating costs of primary, middle, elementary, secondary, and higher secondary govrnmet schools which are, among other things, classified as.functional and with valid SEMIS codes. These schools comprise of those in primary (91102) and secondary (92101). Responsibility for managing the non-salary budget For schools lies with ED. Direct responsibility for the use of school non-salary budgets lies with the Drawing and. Disbursing Officer (DDO) where expenditures are incurred; ie D)O is expected to follow the relevant approved fiduciary guidelines; this includes maintaining all accounts records (e.g., bills, vouchers) per the guidelines. During the year Rs.1 16 Million has been incurred by DDOs in education department. (2016-17: s.l146 Million) 20. MONITORING/SEMIS The full set of costs, at all levels (province to school), for all stages (from design to data analysis and findings dissemination), associated with the annual administration of the Annual School Census (ASC) in all government schools and all investments in, among other things, human resources, logistics, and information technology (hardware and software), to strengthen the administration of the ASC. The budget for SEMIS/ASC is assigned to RSU, and RSU is directly responsible for expenditures incurred. Rs In Rtq Millio In Note Monitoring Expenditure for 14-1 Portfollos '4 21. INCREMENTAL TECHNICAL ASSISSTANCE STAFFING The individual consultant are hired through this head which are providing consultancy services for vaa portfolio including staff which are legal covenant of the project agreement, During the yinr tnuYd 30 June 2018 , total payment was made amounted to Rs. 29 million. 22. CAPACITY BUILDING TA funds available and procure goods and services to meet the technical, advisory, and capacity- building needs of other governmentdepartments, entities, and agencies (e.g.SEF, FD/P3RU, SPPRA) partnering on SERP-1I related initiatives. During the year ended 30 June 2018, total payment was maice amounted to Rs. 3 million. Rs in ns In Note Million Million Goods Trainings and Capacity Building 3 23. EXPENDITURES TRACKING AND MONITORING TA funds available and procure goods and services to meet the technical, advisory, and capacity- building needs of other government departments, entities, and agencies (e.g., SEF,17D/LRU, SPPRA) partnering on SERP-II related initiatives. During the year ended 30 June 2018, total payment was made amountcd to Rs. 21 million. Its In RS In Note Million Million Goods Consultants' Services 21 21 1A3 24. AUTHORIZATION FOR ISSUE These finmcial statements have been authorzed for issue on 31" December 2018. 25. GENERAL: (i) Level of Precision Figures in these financial statements have been rounded offto the nearest milllons of npees, unle~ s otherwise stated, (fi) Corresponding Figures Comprtive figures are shown wherever Is necessary. Chief Progr Ma nagr Reform Support Unit Sindh Eduitation Reform Program X/ l., 4b NO. GOVERNMENT OF SINDH FINANCE DEPARTMENT iKarachi dated 2511h August, 2017. To The Accountant General Sindh, Su7jc- SANCiJON FOR PLACEMENT OF AMOUNT IN TO LAPSABLE ASSIGNMENT ACCOUNT NO.1209-9, TITLED SIND-J EDUCATION EMEFORMS PROGRAM (SiERE)" I am directed to refer letter No.SO.(B&F)SSE&LD/SERP/IRSU/2017-18, dated 24* August, 2017, received from School Education & Literacy Deparent, Government of Sindh, Karachi, on the subject noted aböve. 2. Finance Department conveys the sanction of Govement of Sindh for the placement / Iransfer .of an amount of Rs.1355,ooo(M) (Rupees One Billon Three Hundred Fifty FIve Million only), during the current financial year 2017-18, in to Lapsable Assignment Account N6.209-9, (Local Currency) titled "Sindh Educat Refonnms Program (SERP)", being maintained at National Bank of Pakistan, Incone Tax Building Branch, Karachi and jointly operated by Mr. Faisal Ahmed Uqaili, Chief Program Ma-nager and Mr. Aftab Alai, FMIS Coordinator, Sindh Education Reforms Program, as Principal and Go-signatories, respectively. 3. It is requested that the Manager, National Bank of Pakistan, Income Tax Building Branch, Karachi, may be.advised to arrange payment against above inentioned amount, IZs.1395.000(M) (Rupees Oie Bilon Three Hundred Fifty Eve Million ly), on the receipt of cheque =-d prescribed schedie of payment duly signed -by the authorized signatories of thencount. 4. The above agnment of fund has been 'made against -ngetary aii rthe relevant head of account for the year 2017-18 to which expenditure 5r said fuWsV have been released/on-line on the Cnst `entre 145 th rjctI-ADKQC014, during the current finandal yar A03966 Standardized Achievement Test (SAT) 100,0Ö0,0001 A03973 Monitoring/Sernis . 50,000,000 A03977 to Girls Students 750,000,000 A03979 Teachers/Managers Training 150,o000,000 A03980 Inereinental Tecinical Assistance Sta-fl 80,000,000 - _______________ 25,000,000 A0398. Learning Assessment/Peace 25,0000 ~0398 ~ Fp1nditure Tracking/Moniorn 200,000,000 TOTAL 1,355,O00,000 :2:- t fteTO/ DAO inth 6. The cbeques wil be entertained.after endorse d13nt 1 February, 2012, ght ?Of this department's letter No. FD(taestI)2h2)20 ,eo l p 7,~que a National Bank of Pakistan (NEP), will ensura tat the original pi Offies n tn~dalogWil srol-I.to Treasuiy Office, Karach-i/coiiceiied Diksb-iet euesare eturnled along-withi SCrItoTesy ffices Sindh directly on the daily basis. (AMIR ALI KHAWAJA) Section, Officep (RES-IV) For Secretary to Govt. of Sindh N .SO(RES-IV)5(21)/2014-15 Karachi, dated 251h August, 2017. A copy is forwarded-for information to:- . The Secretary, to Govt. of Sindh, School Education & Literacy Department, Karachi. 2. The Ghief Program Manager/FMIS-Coordinator, Sindh Education Reforms Program, Karachi. 3. The Incharge-IT (Resouice), Finance Department, GoS, Karachi 4. The Section Officer (B&E-XVI), Finance Department, GoS, Karachi. with reference to his U.O No.FD(B&E-XVI/SERP(6)20/2015-]6, dated 23.08.20 7. 5. T ae Freasury Offihr, Karachi. 6 The Manager(GPeration), NBP, Income Tax,Building Branch, Karaci. 7. P.S to AdditionaTFinance Secretary (Res), GoS, Karachi SECTION OFFICER(REiS-IV) 021-99222131 M~TON. tPIl CtF(.R (Pul-V~ FIN ANC0 DE P ARTMIET GOVERNMENT' 0F SIDH