AUDITED FINANCIAL STATEMENTS OF THE
GUYANA SECONDARY EDUCATION IMPROVEMENT
PROJECT
FINANCING AGREEMENT N. 5473-GY
RECEIVED
D at e:
Permanent Secretary
Ministry of Education
FOR THE YEAR ENDED 31 DECEMBER 2018
AUDITORS: AUDIT OFFICE
63 HIGH STREET
KINGSTON
GEORGETOWN
GUYANA


AUDITED FINANCIAL STATEMENTS OF THE
GUAYANA SECONDARY EDUCATION IMPROVEMENT PROJECT
FINANCING AGREEMENT NO. 5473-GY
FOR THE YEAR ENDED 31 DECEMBER 2018
TABLE OF CONTENTS
PAGE
1 TRANSMITTAL LETTER                                        1
2 AUDITOR'S OPINION ON THE STATEMENT OF CUMULATIVE INVESTMENT  2
STATEMENT OF SOURCES AND USES OF FUNDS AND ASSET REGISTER
3 AUDITED STATEMENT OF CUMULATIVE INVESTMENT                4
STATEMENT OF SOURCES AND USES OF FUNDS AND ASSET REGISTER
4 AUDITOR'S OPINION ON THE ELIGIBILITY OF EXPENDITURE       14
5 AUDITOR'S OPINION ON THE DESGINATED ACCOUNT RECONCILIATION  16
6 AUDITED DESIGNATED ACCOUNT RECONCILIATION STATEMENT       18
7 AUDITOR'S OPINION ON COMPLIANCE WITH THE FINANCING AGREEMENT  19
AND THE RELEVANT LAWS AND REGULATION
8 COMPLIANCE WITH THE FINANCING AGREEMENT                   21
9 MANAGEMENT LETTER                                         24


.... [.*                                  . .....
135/IDA: 16/1/2019                                                     13 June 2019
Ms. Adele Clarke
Permanent Secretary
Ministry of Education
26 Brickdam
Georgetown.
Dear Ms. Clarke,
RE: AUDIT OF THE FINANCIAL STATEMENTS OF THE GUYANA SECONDARY
EDUCATION IMPROVEMENT PROJECT CREDIT AGREEMENT X2. 5473-GY
FOR THE YEAR ENDED 31 DECEMBER 2018
I forward herewith two (2) copies of the audited financial statements for the above-mentioned
Project for the year ended 31 December 2018, together with the Report of the Auditor General
and management letter thereon.
Should you need any clarification or explanation, please do not hesitate to let me know.
With kind regards.
Yours sincerely,
s. Dawn Pearson
Audit Manager
for Auditor General
1


Z5,02-225-7582,      S, 592-22 67- 7257,4/w .ao.y
134/IDA: 16/1/2019                                                       13 June 2019
Ms. Hongyu Yang
Task Team Leader
Human Development Department
Latin America and Caribbean Regional Office
World Bank
1818 H Street N.W
Washington D.C 20433
USA.
Dear Ms. Yang,
RE. AUDIT OF THE FINANCIAL STATEMENTS OF THE GUYANA SECONDARY
EDUCATION IMPROVEMENT PROJECT CREDIT AGREEMENT N2. 5473-GY
FOR THE YEAR ENDED 31 DECEM\4BER 2018
I forward herewith one (1) copy of the audited financial statements for the above-mentioned
Project for the year ended 31 December 2018, together with the Report of the Auditor General
and management letter thereon.
Should you need any clarification or explanation, please do not hesitate to let me know.
With kind regards.
Yours sincerely,
awn Pearson.
fo   ditortheal


s'1V
0/ (.4  iP?, 6: 7J/c,j<tu            i'
AG: 61/2019-1   '      -'                            "'ed$Qfq/13 June 2019
REPORT OF THE AUDITOR GENERAL ON THE
STATEMENT OF CUMULATIVE INVESTMENTS
STATEMENT OF SOURCES AND USES OF FUNDS AND THE
ASSET REGISTER OF THE GUYANA SECONDARY EDUCATION IMPROVEMENT
PROJECT FINANCING AGREEMENT (CREDIT NUMBER 5473-GY)
FOR THE YEAR ENDED 31 DECEMBER 2018
Opinion
I have audited the financial statements of the Guyana Secondary Education Improvement Project
which comprise the Statement of Cumulative Investments as of 31 December 2018, the
Statement of Sources and Uses of Funds, and the Asset Register for the year then ended, and
notes to the financial statements, including a summary of significant accounting policies.
In my opinion, the accompanying financial statements of the Guyana Secondary Education
Improvement Project for the year ended 31 December 2018 have been prepared in all material
respects, in accordance with the financial reporting requirements of Section 4:09 of the General
Conditions of Financing Agreement (Credit Agreement Number 5473-GY) dated 10 October
2014 between the Government of Guyana and the International Development Association.
Basis of Opinion
I conducted my audit in accordance with International Standards on Auditing (ISAs) issued by
the International Federation of Accountants (IFAC), the International Standards of Supreme
Audit Institutions (ISSAIs) and the Audit Act 2004. My responsibilities under those standards
are further described in the Auditor's Responsibilities for the Audit of the Financial Statements
section of my report. I am independent of the Project in accordance with the ethical requirements
that are relevant to my audit of the financial statements in Guyana, and I have fulfilled my other
ethical responsibilities in accordance with these requirements. I believe that the audit evidence I
have obtained is sufficient and appropriate to provide a basis for my opinion.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in
accordance with the requirements established in Section 4:09 of the General Conditions of
Financing Agreement (Credit Agreement N2 5473-GY) and for such internal control as
management determines is necessary to enable the preparation of statements that are free from
material misstatement, whether due to fraud or error.


Auditor's Responsibilities for the Audit of the Financial Statements
My objective is to obtain reasonable assurance that the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor's report that includes
my opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit
conducted in accordance with ISAs and ISSAls will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error and are considered material if, individually or in
the aggregate, they could reasonably be expected to influence the economic decisions of users taken
on the basis of these financial statements.
As part of my audit in accordance with ISAs and ISSAls, I exercise professional judgment and
maintain professional skepticism throughout the audit. I also:
*  Identify and assess the risks of material misstatement of the financial statements, whether
due to fraud or error, design and perform audit procedures responsive to those risks, and
obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion.
The risk of not detecting a material misstatement resulting from fraud is higher than for
one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
*  Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the Project's internal control.
*  Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by management.
*  Evaluate the overall presentation, structure and content of the financial statements,
including the disclosures, and whether the financial statements represent the underlying
transactions and events in a manner that achieves fair presentation.
I communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit and significant audit findings, including any significant deficiencies in
internal control that I identify during my audit,
AUDITOR GENERAL
AUDIT OFFICE
63 HIGH STREET
KINGSTON
GEORGETOWN
GUYANA
3


GOVERNMENT OF GUYANA
MINISTRY OF EDUCATION
Name of Project: GUYANA SECONDARY EDUCATION IMPROVEMENT PROJECT (GSEIP)
CREDIT AGREEMENT No. 5473 - GY
STATEMENT OF CUMULATIVE INVESTMENT
FOR THE YEAR ENDED 31 DECEMBER 2018
Prior periods      Prior periods     Current Period     Current Period
Categories                  Cumulative         Cumulative           Ended              Ended
31 December 2017 31 December 2017 31 December 2018 31 December 2018
US$                G$                 US$                G$
1. Goods, works, non-consulting services
and consultants' services, training and     1,290,533.30        266,495,127       1,631,989.28       339,675,838
operating costs under project
U       Total                                       1,290,533.30       266,495,127        1,631,989.28       339,675,838
Mr     m   Bhojedat                                                         Ms. Adele Clarke    PERM AENT SECRETARY
Prje t Coordinator                                                         Permanent Secreta    Ministry of Education
Mi   try of Education                                                       Ministry of Education
The accompanying notes form an intergral part of these financial statements
NM4


A
GOVERNMENT OF GUYANA
MINISTRY OF EDUCATION
Name of Project: GUYANA SECONDARY EDUCATION IMPROVEMENT PROJECT (GSEIP)
CREDIT AGREEMENT No. 5473- GY
STATEMENT OF SOURCES AND USES OF FLUNDS
FOR THE YEAR ENDED 31 DECEMBER 2018
PREVIOUS PERIOD ENDED 31                 CURRENT YEAR ENDED 31              CUMMILATIVEASAT31 DECEMBER
DECEMBER 2017                           DECEMBER 2018                                 2018
.SS                 GSUS                                    GS                  IN                  GS
RECEIPTS
World Bank
Designated Account                                                 1,872,775.12        386,728,062         3,923.016.67        813,542,770         5 /79,791.79       1,20t,270 ,)
Direct Payment                                                               0                   0                                       0                   0                   0
Other disbursement methods                                                   0                   0                                       0                   0                   (1
Government - Sale of bid documents                                      797.70             164,725             1,027.97            212,276             I.825.67            377,00 I
Total Receipts (A)                                               1,873,572.82         386,892,787        3,924,044.64         813,755,046        5,797,617.46       1,200,647,833
LESS EXPENDITURES BY COMPONENT
Component I - Strengthen the Capacity of Secondary School           514,783.23          106-302,737         252,230.86           52,250,450             014.09          158,553,187
Mathematics Teachers Nationwide
Component 2 - Expansion of General Secondary School Facilities      199,004 43          41,094,415         1,187.439.39        247,486,500         I   . 0 143.82      288,580,915
Component 3 - Strengthen Institutional Capacity and Project         576,74564           119,097,975          192,319.03          39.938,888           ' 06467           159.036,863
Management57,4.4190795123903998880046150683
Total Expenditures (B)                                           1,290,533.30         266,495,127        1,631,989.28         339,675,838        2,4'2,522,58         606,170,965
RECEIPTS LESS EXPENDITURES (A-B)                                    583,039.52          120,397,660        2,292,055.36         474,079,208        2,8 5,094.88       594,476,868
Foreign Exchange Adjustment                                                  0                   0                   0                   0                   0           4,980,415
NET BALANCE                                                         583,039.52         120,397,660         2,292,055.36        474,079,208         2,85,194.88        599,457,283
BANK BALANCES
Opening Cash Balances
)esignated Account                                                862,046.59         178,012,621          388.391.34          80,202812
Project Account                                                    16,985.60           3,507.526          194,648.13          40,194,839
Total Opening Balance                                               879,032.19         181,520,147          583,039.47          120,397,651
('losing Cash Balances
Designated Account                                                388,391.34          80-202,812         2,728,241.17        568,838,284
Proj      ount (Note 3 (b)                                        194,648.13          40.194,839          146,853.71          30,618.999
Tot         Balance                                                 583,039.47         120,397,651        2,875,094.88         599,457,283
my B   jedat                                                                                                                         Ms. Adele Clarke
t Coor i tor                                                                                                                         Permanent Secretarv
M    try    ducation                                                                                                                        Ministry ui 1,ducation
The accomip nying notes fortm an intergral part of these financial statements                                                                   PERMANENT SECRETARY
, MinistrY of Education


I
GOVERNMENT OF GUYANA
MINISTRY OF EDUCATION
Name of Project: GUYANA SECONDARY EDUCATION IMPROVEMENT PROJECT (GSEIP)
CREDIT AGREEMENT No. 5473 - GY
ASSET FOR THE YEAR ENDED 31 DECEMBER 2018
ASSET GROUP              OPENING COST     ADDITION     CLOSING COST     CLOSING COST
USS            USS            US$               G$
 Math Technical Group             13,866.73           0         13,866.73        2,863,480
National Centre for Educational
Resource Development (NCERD)          266,308.57           0        266,308.57        54,992,720
MIS Building                   63,699.76           0         63,699.76       13,154,000
Office Furniture and equipment         16,111.37      126.42         16,237.79        3,353,104
Total                     359,986.43      126.42        360,112.85        74,363,304


I
I                           GOVERNMENT OF GUYANA
MINISTRY OF EDUCATION
Name of Project: GUYANA SECONDARY EDUCATION IMPROVEMENT PROJECT (GSEIP)
CREDIT AGREEMENT No. 5473-GY
NOTES TO THE FINANCIAL STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2018
1. PROJECT DESCRIPTION
The Guyana Secondary Education Project (GSEIP) IDA Financing No. 5473-GY is an agreement
between the Co-operative Republic of Guyana (the Recipient) and the International Development
Association (the Association). The agreement was signed on October 10, 2014. The Project date of
effectiveness being 25 November 2014 and closing date being March 31, 2020. The total cost of
the project is a credit of Six Million and Five Hundred Thousand Special Drawing Rights (SDR
6,500,000) equivalent to Ten Million United States Dollars (US$10,000,000).
The recipient of the funds under the GSEIP is the Ministry of Finance. The Project is implemented
by the Ministry of Education.
The table specifies the categories of Eligible Expenditure that may be financed out of the proceeds
of the Financing, the allocation of the amounts of the Grant to each category, and the percentage
of expenditure to be financed for Eligible Expenditures in each category.
1 Category                           Amount of the Financing    Percentage of Expenditure
Allocated           to be financed (inclusive of
(expressed in SDR)               Taxes)
1) Goods, works, non-            6,500,000                    100%
consulting services,
consultants' services,
Training and Operation
Costs for the Project.
{TOTAL AMOUNT                        6,500,000
The objectives of the SEIP will be achieved through the following three (3) components:
1. Strengthen the Capacity of Secondary School Mathematics Teachers Nationwide
(US$1.8 M);
2. Expansion of General Secondary School Facilities (US$7.15 M); and
3. Strengthen Institutional Capacity and Project Management (US$1.05 M)
Component 1: Strengthen the Capacity of Secondary School Mathematics Teachers Nationwide
(US$ 1.80 million). The objective of this component is to improve content knowledge and
instructional skills of secondary school mathematics teachers to enhance their


GOVERNMENT OF GUYANA
MINISTRY OF EDUCATION
Name of Project: GUYANA SECONDARY EDUCATION IMPROVEMENT PROJECT (GSEIP)
CREDIT AGREEMENT No. 5473-GY
NOTES TO THE FINANCIAL STATEMENT - CONT'D
FOR THE YEAR ENDED 31 DECEMBER 2018
effectiveness in the classroom, and is comprised of three (3) sub-components.
Sub-component 1.1-In-Service Mathematics Teacher Training and UpZrading (US$1.275 million).
Carrying out the following activities (i) a diagnostic assessment of mathematics teachers (ii) training
and workshops for master trainers from the Ministry of Education and the National Centre for
Education Resource Development (NCERD) to deliver in-service training to all public secondary
school mathematics teachers: (iii) design, development and provision of modular, iterative,
competency-based training for all secondary mathematics teachers; (iv) in all public secondary
schools, distribution of mathematics teaching aids to promote the application of training in the
classroom and improved student learning; and (v) development of comprehensive website for an on-
line community of practice for mathematics teachers in the country.
Teachers would be formally assessed at the end of each training course (a key Project indicator). This
training would be closely followed up by regular supervision visits by master trainers (3 times per
year per school, including in hinterland regions), who would observe teachers' practice and provide
immediate feedback. In addition, Regional Education Officers (REDOs) and District Education
Officers (DEOs) will play a key role in all training, supervision and project monitoring activities.
REDOs and DEOs will help coordinate and participate in the teacher professional development
workshops and school visits.
At the regional level monthly Mathematics Subject Committee Meetings would be held for all
Mathematics Department Heads, reinvigorating an existing policy that has not been rigorously
implemented. Subject Committee Meetings would be carefully planned, structured and offered each
month to address specific learning objectives and to share experiences facilitated by mathematics
instructional specialists and coordinated by Regional and District Education Officers. At the school
level, Department Heads for Mathematics would organize monthly meetings for all math teachers to
share lesson plans, teaching methods, knowledge and skills from regional Subject Committee
Meetings, and to prepare new lessons and learning activities together. The Project will also provide
information through initial training sessions to ensure the buy-in and support of all School Heads and
to emphasize their responsibility as school leaders and agents of change for the whole school and
beyond mathematics. The project would finance procurement of laptops and LCD projectors to
support the regional meetings. Meanwhile, the GoG has committed to provide sufficient funding each
year in the MoE's budget to provide required logistical support (supplies, transportation, snacks, etc.).
The establishment of an on-line "community of practice" among all mathematics teachers, via a
comprehensive website would enable teachers to inter alia access on-line instructional resources, share
lesson plans, pose questions to fellow teachers and mathematics experts, post blogs, review CSEC
mathematics study guides, and exchange experiences with fellow mathematics teachers through
internal email. This community of practice would be


I
GOVERNMENT OF GUYANA
MINISTRY OF EDUCATION
Name of Project: GUYANA SECONDARY EDUCATION IMPROVEMENT PROJECT (GSEIP)
CREDIT AGREEMENT No. 5473-GY
NOTES TO THE FINANCIAL STATEMENT - CONT'D
FOR THE YEAR ENDED 31 DECEMBER 2018
facilitated by the Mathematics Technical Group, which is composed of mathematics specialists from
the MoE, NCERD, CPCE and UG. The project would finance technical assistance, materials, training
activities, supervision logistics and procurement/distribution of teaching aids.
Sub-component 1.2 - Revising Secondary School Teachers Appraisal Instruments (USS200. 000).
Improving mathematics instruction through: (i) the development of specific standards for mathematics
instruction; (ii) the revision of the appraisal system for secondary school teachers and school
principals; and (iii) the provision of training for secondary school principals, deputy principals, and
master trainers in the use of the revised teacher appraisal instruments.
Sub-component 1.3 -Technology-assisted Learning in Mathematics (US$325,000): Carrying out the
following activities: (i) improvement of mathematics instruction and learning through the use of
innovative technology, on a pilot basis; and (ii) an independent process evaluation to assess the
effectiveness of different packages of tablets and on-line mathematics learning management systems
for improving student learning outcomes in mathematics.
Specifically, this would be piloted in 8 secondary schools over three years promoting innovation and
providing lessons for possible future scaling up. Tablets would be distributed to all Grade 7 students
in the 8 pilot schools, for both school and home use, with the capability to download and operate a
range of self-paced mathematics software applications. This cohort would be followed for three years.
LCD projectors and basic servers would also be provided to each school, so on-line resources can be
downloaded and stored at the school level and accessed offline. After receiving training, teachers
would post regular "reflection blogs" regarding their experiences and questions to a website set up for
this purpose. A more qualitative, process-focused evaluation would be conducted to gather teacher
and student feedback, assess technology adoption, review online resources prepared by participating
teachers, and compare outcomes with a set of control schools. The project would finance technical
assistance, procurement of hardware and software, training and evaluation activities.
Component 2: Expansion of General Secondary School Facilities (USS 7.15 million). Expand
access to General Secondary School services in underserved areas of Regions 3 and 4 of the
Recipient, through:
Sub-component 2.1- New School Construction (US$6.28 million): Construction of three new General
Secondary Schools (one in Region 3 and two in Region 4), pursuant to the specifications set forth in
the Project Operation Manual.
The three new schools would create a total of 2,600 student places. The main goal is to consolidate
nearby Secondary Department (SD) of primary schools into these new GSSs, but also to prepare for
I increasing student populations coming from discrete primary schools in these regions and ease some
crowdedness in surrounding GSSs. There are 10 SDs with a total number of 728 students in


I
GOVERNMENT OF GUYANA
MINISTRY OF EDUCATION
Name of Project: GUYANA SECONDARY EDUCATION IMPROVEMENT PROJECT (GSEIP)
CREDIT AGREEMENT No. 5473-GY
NOTES TO THE FINANCIAL STATEMENT - CONT'D
FOR THE YEAR ENDED 31 DECEMBER 2018
Region 3, and 17 with a total number of 1,257 students in Region 4. In addition, two of the new GSSs
would be located in new housing areas where hundreds of new homes are in the process of being built
and no schools exist. The basic design and architectural plans already exist from recently constructed
GSSs financed through domestic resources; although they need to be revised, this should accelerate
bidding and implementation of the civil works. This sub-component includes the design and
supervision fees.
Sub-component 2.2 - Provision of Furniture and Equipment for the New Schools (US$870,000). This
would finance procurement of classroom furniture, laboratory equipment and basic technology for the
three new GSSs to ensure that the new schools provide the necessary learning conditions to offer the
full secondary education curriculum.
Component 3: Strengthen Institutional Capacity and Project Management (USS 1.05 million).
This component is to strengthen the capacity of the Education Management Information System
(EMIS) through design, development and implementation of a new EMIS to increase efficiency in
education sector data management and information use for planning and policymaking.
Sub-component 3.1 - Design, develop and implement a new education management infbrmation
system to increase efficiency in education sector data management and information use for planning
and policymaking (US$200,000).
This would increase efficiency in education sector data management and information use for planning
and policymaking. This would include design, development and implementation of a new EMIS,
which would enable school heads, Regional Education Officers (REDOs) and MoE policymakers to
more efficiently manage education sector data and use information for more effective planning and
policymaking. The project would finance procurement of EMIS software and hardware, two tablets
for each GSS for school-level uploading/downloading of data(including a keyboard accessory as
necessary), technical assistance and training, as well as tablets for REDOs and the central MoE MIS
unit. The EMIS would capitalize on the GoG's "e-government initiative", which has set up a large
national data center and is establishing 4G wireless connectivity covering approximately 80 percent of
the population (to be operational in August 2014). The vast majority (approximately 85 percent) of
secondary schools are located within this high-speed wireless area, so they will have free connectivity,
easy uploading and access to education information with their tablets, and free hosting of the EMIS
software and database. The REDOs and DEOs will be in charge of supervising the implementation of
the new EMIS at the school level.
Sub-component 3.2 - Carrying out Project management, monitoring and evaluation, and audits
(USS850,000). This would carry out project management, monitoring and evaluation, and auditing
activities.


GOVERNMENT OF GUYANA
MINISTRY OF EDUCATION
Name of Project: GUYANA SECONDARY EDUCATION IMPROVEMENT PROJECT (GSEIP)
CREDIT AGREEMENT No. 5473-GY
NOTES TO THE FINANCIAL STATEMENT - CONT'D
FOR THE YEAR ENDED 31 DECEMBER 2018
2. BASIS OF PREPARATION
The Financial Statement have been prepared in accordance with International Public Sector
Accounting Standards (IPSAS) with particular emphasis on Cash Basis Financial Reporting under
the Cash Basis of Accounting which recongnizes transactions and events only when cash is
received or paid by the Project.
Translation of local currency
United States currency (US$) is translated to local currency (GY$) at the rate of exchange at Bank
of Guyana on the date the funds are deposited into the local currency account that supports the
US$ designated account held at Bank of Guyana. Local currency disbursed is translated to US$ at
the same rate at which the US$ funds were received into the local currency account. The rates of
exchange during the period in the conversion of Guyana currency to United States currency were
GY$206.5 = US$1 (January to May), and GY$208.5 = US$l(June to December). There were no
foreign exchange gain or loss during the financial period.
3. AVAILABLE CASH BALANCES
a) Closing balances as at 31 December 2018                           USS
i.  Crown Agents Bank Account No. 33681111                  2,728,241.17
ii.  Bank of Guyana No.0 162700406008                          146,402.03
Total                                                   2,874,643.20
b) Project local account
Local account         -     US$146,402.03
Petty cash            -     US$    451.68
Balance in project local account USS146.853.71


I
GOVERNMENT OF GUYANA
MINISTRY OF EDUCATION
Name of Project: GUYANA SECONDARY EDUCATION IMPROVEMENT PROJECT (GSEIP)
CREDIT AGREEMENT No. 5473-GY
NOTES TO THE FINANCIAL STATEMENT - CONT'D
FOR THE YEAR ENDED 31 DECEMBER 2018
4. DESIGNATED ACCOUNT
(a) In accordance with the Disbursement letter the Designated Account was established to deposit
advances withdrawn from the Credit to facilitate eligible expenditure. During the period under
review advances made by World Bank to the Designated Account in the sum of
US$3,923,016.67 through withdrawal application No. 13,14 & 16.
(b) During the period under review, disbursements were made for a total amount of
US$1,631,989.28 as follows:
i.  Documented expenditure amount for a total sum of US$446,739.59 through
withdrawal application No. 14,15 & 16
ii.  Expenditure made during the current period under review documented after 31
December 2018 for a total sum of US$1,185,249.69 through withdrawal applications
No. 17
5. SOURCES AND USE OF FUNDS
The Statement of Sources and Uses of funds represent expenditures, which are paid in the period.
Fixed assets and inventory of books are considered as expenditures under the Programme.
6. EXCHANGE RATE GAIN/LOSS
During the period under review there was a total deficit of US$866,501.44 due to the decline in
the exchange rates SDR versus US dollars from 1.53846154 as at 10 October 2014 to 1.4052 as at
31 December 2018.
Loan                         SDR                USD
At Signing 10 October 2014                   6,500,000.00      10,000,000.00
Undisbursed Funds as at 31 December 2018     2,399,863.94       3,337,706.77
Add: Disbursed Advances                      4,100,136.06       5,795,791.79
Total Funds Available as at 31 December      6,500,000.00       9,133,498.56
2018
Loss due to SDR movement                                          866,501.44


GOVERNMENT OF GUYANA
MINISTRY OF EDUCATION
Name of Project: GUYANA SECONDARY EDUCATION IMPROVEMENT PROJECT (GSEIP)
CREDIT AGREEMENT No. 5473-GY
NOTES TO THE FINANCIAL STATEMENT - CONT'D
FOR THE YEAR 31 DECEMBER 2018
7. KEY MANAGEMENT /ORGANISATION STRUCTURE
7.1 According to the Credit Agreement, the organization structure should comprise a Project Coordinator, Project Engineer,
Procurement Specialist, Finance Office and an Assistant Accountant.
7.2 The organization chart reflecting the reporting relationship is seen below:
MINISITER OF
EDUCATION
PERMANENT
SECRETARY
II
DIRECTOR OF              CHIE
EDUCATION                    PLANNING
NCERD                 OFFICER                     OFFICER
S   E         DIRECTOR OF
SUJECT        SECONDARY          EMIS UNIT        COORDINA
ICT      SPECIALIST IN   DEPARTMENT
MATHEMATIC
SPECIALISTS       PROJECT    PROCUREMENT      I INANCE
SPEIALSTSENGINEER      FPSPECIALIST      ()I I  El SI 1 1
CPCE/UC
LECTURERS                                  ASISTANT
MATHEMATICS                                A(1UINTANT


AG: 61/2019-2                                                          13 June 2019
REPORT OF THE AUDITOR GENERAL ON THE
ELIGIBILITY OF EXPENDITURE
FOR THE GUYANA SECONDARY EDUCAION IMPROVEMENT PROJECT
FINANCING AGREEMENT (CREDIT NUMBER 5473-GY)
FOR THE YEAR ENDED 31 DECEMBER 2018
Opinion
I have audited the Requests for Reimbursement of Expenditure submitted for the Guyana
Secondary Education Improvement Project for the year ended 31 December 2018, in support of
credit withdrawals under Financing Agreement (Credit Number 5473 -GY).
In my opinion, the expenditure submitted for reimbursement were eligible to be replenished from
the funds of the Project, the funds were used for the purposes intended and the internal control
and procedures used in the preparation of the Requests for Reimbursement of Expenditure can be
relied upon to support each request.
Basis of Opinion
I conducted my audit in accordance with International Standards on Auditing (ISAs) issued by
the International Federation of Accountants (IFAC), the International Standards of Supreme
Audit Institutions (ISSAls) and the Audit Act 2004. My responsibilities under those standards
are further described in the Auditor's Responsibilities for the Audit of the Financial Statements
section of my report. I am independent of the Project in accordance with the ethical requirements
that are relevant to my audit of the financial statements in Guyana, and I have fulfilled my other
ethical responsibilities in accordance with these requirements. I believe that the audit evidence I
have obtained is sufficient and appropriate to provide a basis for my opinion.
Management's Responsibility for the Financial Statements
Management is responsible for the Requests for Reimbursement of Expenditure in accordance
with the requirements established in Section IV of the Financing Agreement (Credit Agreement
Number 5473-GY) and for such internal control as management determines is necessary to
enable the preparation of statements that are free from material misstatement, whether due to
fraud or error.
14


I
Auditor's Responsibilities for the Audit of the Financial Statements
My objective is to obtain reasonable assurance that the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor's report that includes
my opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit
conducted in accordance with ISAs and ISSAIs will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error and are considered material if, individually or in
the aggregate, they could reasonably be expected to influence the economic decisions of users taken
on the basis of these financial statements.
As part of my audit in accordance with ISAs and ISSAls, I exercise professional judgment and
maintain professional skepticism throughout the audit. I also:
*  Identify and assess the risks of material misstatement of the financial statements, whether
due to fraud or error, design and perform audit procedures responsive to those risks, and
obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion.
The risk of not detecting a material misstatement resulting from fraud is higher than for
one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
* Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the Project's internal control.
* Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by management.
*  Evaluate the overall presentation, structure and content of the financial statements,
including the disclosures, and whether the financial statements represent the underlying
transactions and events in a manner that achieves fair presentation.
I communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit and significant audit findings, including any significant deficiencies in
internal control that I identify during my audit.
D. SHARMA
AUDITOR GENERAL
AUDIT OFFICE
63 HIGH STREET
KINGSTON
GEORGETOWN
GUYANA
15


AG: 61 /2019-3                                                        13 June 2019
RI
AND THE PROJECT ACCOUNTS
Opinion
I have audited the Designated Account Reconciliation Statement and the Project Accounts
submitted for the Guyana Secondary Education Improvement Project for the year ended 31
December 2018. This statement and the accounts are the responsibility of the Guyana Secondary
Education Improvement Project.
In my opinion, the Designated Account Reconciliation Statement and the Project Accounts, used
for managing the funds provided by the International Development Association, presents fairly,
in all material respects, the availability of funds for the year ended 31 December 2018, as well as
the transactions made during the same period, in accordance with the financial reporting
provisions outlined in the Financing Agreement.
Basis of Opinion
I conducted my audit in accordance with International Standards on Auditing (ISAs) issued by
the International Federation of Accountants (IFAC), the International Standards of Supreme
Audit Institutions (ISSAls) and the Audit Act 2004. My responsibilities under those standards
are further described in the Auditor's responsibilities for the Audit of the Financial Statements
section of my report. I am independent of the Project in accordance with the ethical requirements
that are relevant to my audit of the financial statements in Guyana, and I have fulfilled my other
ethical responsibilities in accordance with these requirements. I believe that the audit evidence I
have obtained is sufficient and appropriate to provide a basis for my opinion.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation of the financial statements in accordance with the
requirements established in Section 4:09 of the Financing Agreement (Credit Agreement N2
5473-GY) and for such internal control as management determines is necessary to enable the
preparation of statements that are free from material misstatement, whether due to fraud or error.
16


Auditor's Responsibilities for the Audit of the Financial Statements
My objective is to obtain reasonable assurance that the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor's report that includes
my opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit
conducted in accordance with ISAs and ISSAls will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error and are considered material if, individually or in
the aggregate, they could reasonably be expected to influence the economic decisions of users taken
on the basis of these financial statements.
As part of my audit in accordance with ISAs and ISSAIs, I exercise professional judgment and
maintain professional skepticism throughout the audit. I also:
* Identify and assess the risks of material misstatement of the financial statements, whether
due to fraud or error, design and perform audit procedures responsive to those risks, and
obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion.
The risk of not detecting a material misstatement resulting from fraud is higher than for
one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
* Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the Project's internal control.
* Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by management.
*  Evaluate the overall presentation, structure and content of the financial statements,
including the disclosures, and whether the financial statements represent the underlying
transactions and events in a manner that achieves fair presentation.
I communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit and significant audit findings, including any significant
deficiencies in internal control that I identify during my audit.
AUDITOR GENERAL
AUDIT OFFICE
63 HIGH STREET
KINGSTON
GEORGETOWN
GUYANA
17


I
GOVERNMENT OF GUYANA
MINISTRY OF EDUCATION
Name of Project: GUYANA SECONDARY EDUCATION IMPROVEMENT PROJECT (GSEIP)
CREDIT AGREEMENT No. 5473 - GY
DESIGNATED ACCOUNT RECONCILIATION STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2018
ACCOUNT NUMBER: 33681111 CROWN AGENTS BANK
USS             GS
1 Total Advanced By World Bank (or Cofinancier)                               5,795,791.79   1,200,270,832
2 Less: Eligible Expenditure Documented by World Bank                         1,737,272.89     359,046,405
PRESENT OUTSTANDING AMOUNT ADVANCED TO THE DESIGNATED
ACCOUNT (1 - 2)                                                            4,058,518.90     841,224,427
4 Balance of Designated Account per attached Bank Reconciliation Statement as at 31
December 2018                                                              2,728,241.17     568,838,284
S4.1 Balance in Project Local Account (Note 3 (b)                            146,853.71      30,618,999
5 PLUS: Eligible Expenditure for the current period Documented after period end
(Withdrawal Application #17)                                                1,185,249.69    247,124,560
6 PLUS: Total Amount Withdrawn and not yet Claimed                                      0                0
REASON: Application was pending signature in client connection
PLUS: Amounts claimed in pervious applications not yet Credited at Date of Bank
Statements                                                                            0               0
APPLICATION NO.
WA #
SUBTOTAL OF PREVIOUS APPLICATIONS NOT YET CREDITED (NO. 5 to
NO.7)                                                                                 0               0
8 LESS: INTEREST EARNED                                                                 0                0
9 TOTAL ADVANCE ACCOUNTED FOR (NO. 4 THROUGH NO. 9)                           4,060,344.57     846,581,843
10 DIFFERENCE (3 - 9)                                                            (1,825.67)     (5,357,416)
EXPLANATION OF ANY DIFFERENCE SHOWN IN LINE 10: USS - Deposit of sale of bid documents (G$ sale of bid
documentslus movement of exchange rate during the period)
M,     m  Bhojedat                                                           Ms. Adele Clarke
So'je t Coordinator                                                         Permanent Secretary
M    try of Education                                                        Ministry of Education
The accompanying notes form an intergral part of these financial statements           of Educaton


AG: 61/2019-4                                -     /yj                 13 June2019
REPORT OF THE AUDITOR GENERAL ON THE
COMPLIANCE WITH THE FINANCING AGREEMENT AND THE
RELEVANT LAWS AND REGULATIONS
FOR THE GUYANA SECONDARY EDUCATION IMPROVEMENT PROJECT
FINANCING AGREEMENT (CREDIT NUMBER 5473-GY)
FOR THE YEAR ENDED 31 DECEMBER 2018
Opinion
I have audited the financial statements of the Guyana Secondary Education Improvement Project
which comprise the Statement of Cumulative Investments as of 31 December 2018, the
Statement of Sources and Uses of Funds, and the Asset Register for the year then ended, and
notes to the financial statements, including a summary of significant accounting policies.
In my opinion, the Guyana Secondary Education Improvement Project complied with Articles II to
IV of the Financing Agreement (Credit Number 5473-GY) and the relevant laws and regulations
for the year ended 31 December 2018.
Basis of Opinion
I conducted my audit in accordance with International Standards on Auditing (ISAs) issued by
the International Federation of Accountants (IFAC), the International Standards of Supreme
Audit Institutions (ISSAls) and the Audit Act 2004. My responsibilities under those standards
are further described in the Auditor's Responsibilities for the Audit of the Financial Statements
section of my report. I am independent of the Project in accordance with the ethical requirements
that are relevant to my audit of the financial statements in Guyana, and I have fulfilled my other
ethical responsibilities in accordance with these requirements. I believe that the audit evidence I
have obtained is sufficient and appropriate to provide a basis for my opinion.
Management's Responsibility for the Financial Statements
Management is responsible for the compliance with the requirements of Articles II to V of the
Financing Agreement (Credit Number 5473-GY) and for such internal control as management
determines is necessary to enable the preparation of statements that are free from material
misstatement, whether due to fraud or error.
19


Auditor's Responsibilities for the Audit ofthe Financial Statements
My objective is to obtain reasonable assurance that the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor's report that includes
my opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit
conducted in accordance with ISAs and ISSAIs will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error and are considered material if, individually or in
the aggregate, they could reasonably be expected to influence the economic decisions of users taken
on the basis of these financial statements.
As part of my audit in accordance with ISAs and ISSAls, I exercise professional judgment and
maintain professional skepticism throughout the audit. I also;
*  Identify and assess the risks of material misstatement of the financial statements, whether
due to fraud or error, design and perform audit procedures responsive to those risks, and
obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion.
The risk of not detecting a material misstatement resulting from fraud is higher than for
one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
*  Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the Project's internal control.
*  Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by management.
*  Evaluate the overall presentation, structure and content of the financial statements,
including the disclosures, and whether the financial statements represent the underlying
transactions and events in a manner that achieves fair presentation.
I communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit and significant audit findings, including any significant
deficiencies in internal control that I identify during my audit.
AUDITORTENERAL
AUDIT OFFICE
63 HIGH STREET
KINGSTON
GEORGETOWN
GUYANA
20o


I
MINISTRY OF EDUCATION
SECONDARY EDUCATION IMPROVEMENT PROJECT
IDA CREDIT NO. 5473 - GY
FOR THE YEAR ENDED 31 DECEMBER 2018
Compliance with Financing Agreement
Article II - Financing
2.02
According to this Article, the Recipient may withdrawal the proceedings of the Financing in
accordance with Section IV of Schedule 2 to this Agreement.
During the year under review, the amounts withdrawn were in accordance with Section IV of
Schedule 2 to the Financing Agreement. Therefore, the requirement of this Article was met.
2.03
This Article stipulates that the Maximum Commitment Charge Rate payable by the Recipient on
the Unwithdrawn Financing Balance is one-half of one percent (¼ of 1%) per annum.
It was observed during the year under review that the Maximum Commitment Charge Rate
payable by the Recipient did not exceed that stipulated in the Financing Agreement Therefore,
the requirement of this Article was met.
2.04
The Service Charge payable by the Recipient on the Withdrawn Credit Balance shall be equal to
three-fourths of one-percent (% of 1%) per annum.
During the year under review, the Service Charge payable by the Recipient on the Withdrawn
Credit Balance did not exceed that stipulated in the Financing Agreement and therefore, the
requirement of this Article was met
2.05
The Interest Charge payable by the Recipient on the Withdrawn Credit Balance shall be equal to
one and a quarter percent (1.25%) per annum.
During the year under review, the Interest Charge payable by the Recipient on the Withdrawn
Credit Balance did not exceed that stipulated in the Financing Agreement and therefore, the
requirement of this Article was met.
21


N 2.06
The Payment Dates are June 1 and December I in each year.
The Government o/Guyana paid to the Association, the sums of USS 26,599.90 on 28 May 2018
and US$ 39,664.31 on 28 November 2018. Therefore, the requirement ofthis Article was met,
2.07
The principal amount of the Credit shall be repaid in accordance with the repayment schedule set
forth in the Agreement.
According to the repayment schedule, the amounts to be paid to the Association are due in June
and December each year, with the first repayment on 1 December 2019 and the last on I June
2039. Therefore, the requirements were not applicable during the period t
2.08
The Payment Currency is United States Dollars.
The amount paid as Service Charge was in United States Dollars and therefore, the requirement
of/this Article was met.
Article I- Pro*ject
3.01
The Recipient declares its commitment to the objective of the Project. To this end, the Recipient
shall carry out the Project through its Ministry of Education in accordance with provisions of
Article IV of the General Conditions.
The Recipient declared its commitment to the objective of the Project and the activities of the
Project were undertaken through the Ministry of Education. The requirements of this Article
were therefore met.
3.02
According to this Article, the Recipient shall ensure that the Project is carried out in accordance
with the provisions of Schedule 2 of the Financing Agreement.
During the year under review, the activities of the Project were carried out in accordance with
the provisions ofSchedule 2 ofthe Financing Agreement
22


Article IV - Effectiveness:L.Termination
4.01
The Additional Conditions of Effectiveness consist of, namely, that the Recipient, through the
Ministry of Education, has hired the Project coordinator, and the Project engineer, referred to in
Section I.A.]1 of Schedule and that the Project Operations Manual has been adopted by the
Recipient pursuant to Section I.A.2 of Schedule 2 to this Agreement
During the year under review i was observed that the Recipient through the Ministry of
Education have hired the Project coordinator and Project engineer and has prepared and
adopted the Operational Manual and is executing the Project in accordance with the terms of the
Operations Manual.
4.02
Without prejudice to the provision of the General Conditions, the Effectiveness Deadline is the
date ninety (90) days after the date of this Agreement but in no case later than the date eighteen
(18) months after the Association's approval of the Financing, which expires on December 4,
2015.
It was observed that the Project date of effectiveness was on 25 November 2014 which did not
exceed the expired date in the Financing Agreement and therefore, the requirement of this
Article wasJfully met.
4.03
For purpose of Section 8.05(b) of the General conditions, the date on which the obligations of the
Recipient under the Agreement (other than those providing for payment obligations) shall
terminate is twenty (20) years after the date of this Agreement.
23