The Education Reform for Knowledge Economy Project II (ERMK II) Funded By International Bank for Reconstruction and Development (IBRD) Loan Agreement No. (7M0 JO) Ministry of Education (MoE) Amman- The Hashemite Kingdom at Jordan amied's Stalment of Cash Receipts and Dishmrsements andidependent Audito' Re part For the Year Ended December 31, 2013 Psepared b TaWlalAb-Chazaleh& Co.Intematioal(rAGI) Member of Tala Abu*-Ghaaeh Organization (TAGO) The Education Reform for Knowledge Economy Project II (ERfKE 11) Ministry of Education (MoE) Anman-The Hashemite Kingdom of Jordan TABLE OF CONTENTS INDEPENDENT AUDITORS REPORT - .I INDEPENDENT AUDITOR'S REPORT ON SPECIAL ACCOUNT.. ....- 3 STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS.-. .... 4 NOTES TO FINANCIAL STATEMENT........ S MANAGEMENT LET ER ..................- 12  TAGA Talal Abu-Ghazaleh & Co. International I Global Company for Auditing and Accounting t... llwt a aun a i Alliance with Russell Bedford International More than 120 member & correspondent firms and 280 offices in Europe, the Americas & Asia-Pacific Independent Auditors Report Messas Ministry of Education The Education Reform farKnowledge Economy PojectIl (ERfKE II) Amman-The Hashemite Ingdom of Jordan We have audited the accompanying statement of cash receipts and disbursements of the Education Reform for Knowledge Economy ProjectU (ERfKE II), for the year ended December 31, 2013 financed under loan agreement No. (7702 JO) through the administration of the International Bank for Reconsbuction and Development (1ID). The financial statement has been prepared by management using the cash basis of accounting described in Note (2/a). Management Responsibility for Financial Statement Management is responsible for the preparation and fair presentation of this financial statement in accordance with cash receipts and disbursements basis of accounting described in Note (2/a); this includes determining that the cash receipts and disbursements basis of accounting is an acceptable basis for the preparation of the financial statement In the circumstances, and for such internal control as management determines is necessary to enable the preparation of the financial statement the is free from material misstatement, whether due to fraud or error. Auditor Responsibility Our responsibility is to express an opinion on the financial statement based on our audit We conducted our audit in accordance with International Standards on Auditing (ISA). Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statement is free of material misstatement An audit involves performing procedures to obtain audit evidence about amounts and disclosures in the financial statement The procedures selected depend on the auditoes judgment, including the assessment of the risks of material misstatement of the financial statement, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statement on order to design audit procedures that are appropriate in the circumstances, but not the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates, if any, made by the management, as well as evaluating the overall presentation of the financial statement TAG-KS Building-Amman Office at wEMh .4 A64al J 19 Meeca Street, Um-Uthaina U FORUM OF FIRMSi Tel.: +962 6 5100 600 +V1Y I 1io 't *:6iA Fax: +962 6 5100 601 tagi.com 01V, , ..%-I :UAG P.O.Box: 3966,Amman 11953 Jordan tagco.amman@tagi.com cA9ji I IS1;T ar itI :Y.uA We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion: a) The financial statement presents fairly, in all material respects, the cash receipts and disbursements The Education Reform for Knowledge Economy Project II (ERWKE II) for the year ended December 31, 2013 in accordance with cash receipts and disbursements basis of accounting as described in Note (2/a); b) Internal control over financial reporting involved in the preparation of direct payments, and relimbursements on the basis of Funds Receipt and Payments can be relied upon to support the related withdrawals for the period from January 1, 2013 to December 31, 2013; c) The Project was, in all material respects, in compliance with the laws, regulations, guidelines and provisions governed by the Loan Agreement Basis of Accounting Without modifying our opinion, we draw attention to Note (2/a) to the financial statement, which describes the basis of accounting. The financial statement is prepared to provide information to IBRD. As a result, the statement may not be suitable for another purpose. With respect to Statement of Cash Receipts and Disbursements, adequate internal controls and proper supporting documentation have been maintained to support claims to the IBRD for reimbursements of disbursements, and disbursements are eligible for financing under loan agreement No. (7702 JO). Talal Abu-Ghazaleh & Co. International Amman, April 28, 2014 2'- Ip TAGl-Auditos Talal Abu-Ghazaleh & Co. International Global Company for Auditing and Accounting a , j. l 1 Z 2 Alliance with Russell Bedford International More than 120 nember & correspondent firms and 280 offices in Europe, the Americas & Asia-Pacific Independent Auditor's Report an Speclal Account Messrs Ministry of Education The Education Refmo for Knowledge Economy Project II (ERfKE II) Amman- The Hashemite IGngdom of Jordan We have audited the sources and applications of funds of the "Special Accoun" of the Education Reform for Knowledge Economy Project II (ERfKE U) loan agreement No. (7702 JO) for the year ended December 31, 2013. Our responsibility is to express an opinion on the statement of the special account based on our audit We conducted our audit in accordance with International Standards on Auditing (ISA). Those Standards require that we plan and perform the audit to obtain reasonable assurance that the Special Account statement is free of material misstatemenL We believe that our audit provides a reasonable basis for our opinion. In our opinion, the statement of the "Special Account" presents a valid balance of Designated Account as well as being used exclusively for the payment of eligible expenditures which gives a true and fair view of the source and applications of funds of the Education Reform for Knowledge Economy Project U (ERfKE II) loan agreement No. (7702 JO), for the year ended December 31, 2013 in accordance with the cash basis of accounting as described in Note (2/a). Talal Abu-Ghazaleh & Co. International Amman, April 28,2014 TAG-KS Building-Amman Oflice W 'E""" -4)L.4 AlOj-M4 l 3% U;.. 19 Mecca Street, Um-Uthaina - FORUM OF FIRMS fl '-__4A - I ' Tel.: +96265100600 +1 T o.. I.. : Fax: +962 6 5100 601 tagi.com +q Y % '% .mlk P.O.Box: 3966, Amman 11953 Jordan tagco.amman@tagi.com oj. II a V o 4r i I I.LPO cn iori b <2 eft a ja i -L<' L .. ola I bo