AUDITOR'S REPORT * "NIISLEL-AUDIT" LLC

Transcription

1 * "NIISLEL-AUDIT" LLC Public Disclosure Authorized AUDITOR'S REPORT Improving Primary Education Outcomes For The Most Vulnerable Children in Rural Mongolia Project No.TF Financial statements as of December 31, 2016 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Ulaanbaatar 2017

2 "NIISLEL AUDIT" LLC Certified audit, appraisal and accounting consultancy company INDEPENDENT AUDITOR'S REPORT To: Mr. Mitsuaki Toyoda Country Director Improving Primary Education Outcomes for The Most Vulnerable Children in Rural Mongolia Project "Save the children" Non-Governmental Organization Grant No: TF We have audited the Financial Management Reports comprising the balance sheet, project source and uses of funds by project activity, disbursement report and the designated account statement of Improving Primary Education Outcomes for The Most Vulnerable Children in Rural Mongolia Project Grant No: TF for the year ended December 31, The management of Improving Primary Education Outcomes for The Most Vulnerable Children in Rural Mongolia Project is to prepare the Financial Management Reports on the cash receipts and payments basis in conformity with International Public Sector Accounting Standards (IPSAS). On this basis, cash receipts are recognized when received and cash expenditures are recognized when paid rather than when incurred. Our responsibility is to express an opinion thereon based on our audit. We conducted our audit in accordance with International Standards on Auditing issued by the International Auditing and Assurance Standards Board of the International Federation of Accountants. These standards require that we plan and perform the audit to obtain reasonable assurance about whether the interim financial reports are free of material misstatement. An audit includes examining on test basis, evidence supporting the amounts and disclosures in the interim financial reports. An audit 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 Management Reports have been prepared in accordance with International Public Sector Accounting Standard issued by the Public Sector Committee of the Federation of Accountants, presented fairly the cash receipts and payments of the project during the year ended December 31, 2016 and furthermore in all material respected, expenditure have applied to the purpose intended in the Grant Agreement, Grant No: TFO UJ Utaanbaalar city, Sukhbaatar district, Saga toiruu-44 Phone/Fax: , info@nfistelaudit.mn

3 I1 Japan Social Development Fund -TF "IMPROVING PRIMARY EDUCATION OUTCOMES FOR THE MOST VULNERABLE CHILDREN IN RURAL MONGOLIA PROJECT AUDITED BALANCE SHEET (as of 31 December 2016) (USD) ASSET Cash Small fund /MNT/.. Designated account /USD/ 198, , Total cash 198, NON-CURRENT ASSET Goods 539, , Consultant's services 236, , Training 808, ,005, Civilworks 27, , Community Block Grants 72, , Operating costs 121, , Non-financed funds Total 1,805, ,197, TOTAL ASSET 2,004, ,355, LIABILITIES AND SOURCES Sources Grant Fund from Japan Social Development Fund "Save the Children" Non-governmental Organization Fund 2,000, ,349, Total sources Bank net interest income 2,000, ,349, Designated account net interest income 3, , Total net interest income 3, , TOTAL LIABILITIES AND SOURCES 2,004, ,355, Mitsuaki Toyoda Gereltuya Ts. Country Director C Project Manager Bulgan B.K Finance Manager n d LH... L)

4 Ulaanbaatar city, Sukhbaatar district, Baga toiruu-44 Phone/Fax: , U.. "NIISLEL AUDIT" LLC -1 Certified audit, appraisal and accounting consultancy company INDEPENDENT AUDITOR'S REPORT To: Mr. Mitsuaki Toyoda Country Director Improving Primary Education Outcomes for The Most Vulnerable Children in Rural Mongolia Project "Save the children" Non-Governmental Organization Grant No: TF We have audited the accompanying statement Sources and Uses of Funds of Improving Primary Education Outcomes for The Most Vulnerable Children in Rural Mongolia Project submitted to the World Bank during the year ended December 31, 2016 in support of credit withdrawals under the Grant Agreement, Grant No: TFO We conducted our audit in accordance with generally accepted auditing standards that accordingly included examination, on a test basis, of evidence supporting the amounts and disclosures in the statement of Sources and User of Funds. An audit 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 statement of Sources and Uses of Funds submitted together with the internal controls and procedures involved in their preparation can be relied upon to support the application for credit withdrawals. "Niie t"&lc L I

5 Japan Social Development Fund -TF "IMPROVING PRIMARY EDUCATION OUTCOMES FOR THE MOST VULNERABLE CHILDREN IN RURAL MONGOLIA PROJECT AUDITED SOURCES AND USES OF FUNDS (as at 31 December 2016) (USD) EJi Accumulated as Accumulated as of of SOURCES OF FUNDS: Beginning balance of monetary asset Grant Fund from Japan Social Development Fund 2,000, "Save the Children" Non-governmental Organization 349, ,349, Fund Non-financed source Total sources 2,000, , ,349, Bank net interest income 3, , , Total other sources 3, , , TOTAL SOURCES OF FUNDS 2,004, , ,355, USES OF FUNDS Goods 539, , , Consultants' services 236, , , Training 808, , ,005, Civil works 27, , Community Block Grants 72, , , Operating costs 121, , , Amount withdrawn and not yet claimed (290.64) 0.01 TOTAL DISBURSEMENT 1,805, , ,197, Financing balance 198, (40,816.80) 157, Designated account 198, (40,816.80) 157, Operating account TOTAL CASH AND CASH EQUIVALENTS 198, (40,816.80) 157, Mitsuaki Toyoda Country Director Gereltuya Ts. Project Manager Ui Ru Finance Manager U

6 "NIISLEL AUDIT" LLC Certified audit, appraisal and accounting consultancy company INDEPENDENT AUDITOR'S REPORT To: Mr. Mitsuaki Toyoda Country Director Improving Primary Education Outcomes for The Most Vulnerable Children in Rural Mongolia Project "Save the children" Non-Governmental Organization Grant No: TF f r1 We have audited the accompanying the Statement of Expenditures (SOEs) of Improving Primary Education Outcomes for The Most Vulnerable Children in Rural Mongolia Project submitted to the World Bank during the year ended December 31, 2016 in support of credit withdrawals under the Grant Agreement, Grant No: TFO We conducted our audit in accordance with generally accepted auditing standards that accordingly included examination, on a test basis, of evidence supporting the amounts and disclosures in the Statement of Expenditures. An audit 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 Statement of Expenditures submitted together with the internal controls and procedures involved in their preparation can be relied upon to support the application for credit withdrawals. LJ U "Nii dit'lc U... Ulaanbaatar city, Sukhbaafar district, Baga toiruu-44 Phone/Fax , info@niislelaudit.mn

7 Japan Social Development Fund -TF "IMPROVING PRIMARY EDUCATION OUTCOMES FOR THE MOST VULNERABLE CHILDREN IN RURAL MONGOLIA PROJECT AUDITED SUMMARY OF APPLICATION FOR WITHDRAWAL (as at 31 December 2016) (US1 Claimed Financing Number Note date Amount date Amount Cumulative as of 31 December ,805, , Reference WA Apr , Apr , WA Sep , Sep , WA Dec , Dec , WA Apr , Apr Apr , Apr Total as of 31 December , o0.00 Total 2, , Note: 1. These applications for withdrawals disbursed in reporting year and financed by World bank. 2. These applications for withdrawals were not transferred to Designated account, but paid directly from World bank. 3. These applications for withdrawals disbursed in previous year and received financing from World bank in reporting year. 4. These applications for withdrawals disbursed in reporting year, but not claimed from World bank. Mitsuaki Toyoda Country Director Gereltuya Ts. Project Manager Bulgan B. Finance Manager

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9 "NIISLEL AUDIT" LLC lc g - Certified audit, appraisal and accounting consultancy company Date:.,. INDEPENDENT AUDITOR'S REPORT To: Mr. Mitsuaki Toyoda Country Director Improving Primary Education Outcomes for The Most Vulnerable Children in Rural Mongolia Project "Save the children" Non-Govern mental Organization Grant No: TF We have audited the accompanying the Designated Account Statement of Improving Primary Education Outcomes for The Most Vulnerable Children in Rural Mongolia Project submitted to the World Bank during the year ended December 31, 2016 in support of credit withdrawals under the Grant Agreement, Grant No: TFO We conducted our audit in accordance with generally accepted auditing standards that accordingly included examination, on a test basis, of evidence supporting the amounts and disclosures in the Designated Account Statement. An audit 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 Designated Account Statement submitted together with the internal controls and procedures involved in their preparation can be relied upon to support the application for credit withdrawals. "Nii e1-#di'lc Ulaanbaatar city, Sukhbaatar district, Saga toiruu-44 Phone/Fax' , info@nislelaudit.mn

10 Japan Social Development Fund -TF "IMPROVING PRIMARY EDUCATION OUTCOMES FOR THE MOST VULNERABLE CHILDREN IN RURAL MONGOLIA PROJECT AUDITED STATEMENT OF DESIGNATED ACCOUNT (as at 31 December 2016) PART A- ACCOUNT TRANSACTIONS (USD) 2015/12/ /12/31 Beginning balance 76, , Add: Advance received from Japan Social Development Fund - Funds received from Japan Social Development Fund on that year 803, , Net interest of account balance 1, , Deduct: Goods 178, , Consultants' services 47, , Training 380, , Civil works - Community Block Grants 37, , Operating costs 39, , Amount withdrawn and not yet claimed (290.64) Ending balance 198, , PART B- ACCOUNT RECONCILIATION Designated account balance as of year ending Add: 198, IS7, Amount withdrawn and not yet claimed Non-financed sources 51, Paid for bank service - 60, Deduct: Net interest paid for account balance 3,725.A1 5, Non-financed sources Total advance recorded in designated account 246, , Mitsuaki Toyoda Country Director Gereltuya Ts. Project Manager Bulgan B. Finance Manager LI U9 L H

11 NOTE 1. PROJECT INTRODUCTION Project name: Improving primary education outcomes for the most vulnerable children in rural Mongolia Project address: Chingeltei district, Khoroo 1, 4 Floor, Arizona Centre Grant number: Japan Social Development Fund Grant -TFO Implementing agency "Save the Children" Non-governmental U organization oproject Contract approval date Duration of the project total budget 2,637,579USD Objective: UThe project aims to improve quality, performance, and access to pre school and primary school education for 7500 children aged between 5-10 in 30 sourns of the Arkhangai, Uvurkhangai, Domnod, Sukhbaatar provinces. fl The development objective of the project is to improve the education outcomes of some 7,500 most vulnerable children (aged 5-10) in four educationally underperfoning and underserved rural aimags (Dorod, Sukhbaatar, Arkhangai and Uvurkhangai) of Mongolia. The project is comprised of three main components: fl 1. Strengthening school preparation programs for new school entrants in remote communities (home-based curriculum development; capacity building and technical support; and community mobilization); * Training modules and materials on school readiness developed for parents, school 0 administrators, kindergarten/primary teachers, and dormitory staff; * Leaning resource materials on school preparation produced m v children/families; for 10,000 * 30 Toyand Equipment Libraries setup at 30 target kindergartens/schools; * 40 soum governors and local government officials trained on school readiness/preparation; 3communi education councils formed at sou level and conduct regular operations; Capacity of at least 210 kindergarten/primary/dormitory teachers on school preparation builtthrough training; *Upto 30 CEC-s provided with community block grants to promote the program delvreandreach; and * At least 3,600 parents/caregivers contacted to share knowledge and skills on caring for 5-6 year old children's psychosocial and development needs. Li 2. Introducing extracurricular after-school programs specifically targeting lower-primary age children living away from home (development of after-school programs; capacity building and technical support; program delivery support; and community participation); and

12 Q El * A school guidance manual on after-school programs developed and 30 soum schools (5 teachers per school, including primary and dormitory teachers and school social workers) receive relevant training; * At least 60 target children regularly attend and benefit from the after-school programs per school each year during the second year to the fourth year; * At least 5 community members are identified, trained and act as after school program facilitators at each school; * 500copiesofan"After-School Program Best Practices Manual" developed and circulated to all schools in Mongolia; * Up to 30 CEC-s provided with community block grants to promote the program delivery and reach; and * 30 school dormitories supported with basic equipment and renovation. 3. Piloting compensatory distance education programs for lower-primary age children in rural communities (program curriculum and learning resource material development; parents' education; capacity building and technical support; and program delivery support). * Alternative lower-primary, home-learning education curriculum (gradesl-3)and their corresponding teaching and learning materials (including a seriesofself-learning videoprograms) developed and piloted; * Atleast 1,000 teaching and learning resource materials developed, produced, and disseminated; * Training for at least 140 teachers,community volunteers and mentor parents trained on individual teaching/coaching/monitoring techniques and program delivery; * At least 300 children enrolled in the alternative lower-primary education equivalency programs; * Capacity of 34 soum/aimag schools or enlightenment centers to deliver program activities improved (e.g., setting up of resource libraries); * Up to 30 CEC-s provided with community block grants to promote the program delivery and reach; and * Project-produced teaching and learning resource materials uploaded on to NFDE's website for wider circulation and use. New approaches and innovations * A School Readiness Toy and Equipment library will be established in each of the 30 soums. * Community Education Councils will be established in each of the 30 soums. * A small sized, results based community block grant scheme will be introduced on a pilot basis. * Alternative lower-primary,home-learning education curriculum (gradesl-3) and corresponding teaching and learning materials will be developed and piloted, including a series of self-learning video programs for parents of children in Grade 1-3. I I Project source of funds: World Bank will provide an amount of 2,457,579/two million four hundred fifty seven thousand five hundred seventy nine/ USD Grant from Japan Social Development Fund according to Recipient agreement. Grant will be disbursed in accordance with following category. /USD/ Component Component name Budget I Strengthening school preparation programs for new school entrants 731, J5 toyears of ge in the community

13 2 Introducing extracurricular after-school programs in schools for 623, vulnerable children (6 to 1Oyears of age)living away from parents/home 3 Piloting compensatory education programs for lower-primary outof-school children (6 to 9 years of age) in rural communities 573, Project management, monitoring and evaluation, and knowledge 528, dissemination... Total Project budget 2,457, /USD/ Fxpenditure categ Amount Financing percentage Total Consultants' services, training, 2,165, % 2,165, goods, civil works Community Block Grants 117, % 117, Operating Costs 175, % 175, Total amount 2,457, % 2, NOTE 2. ACCOUNTING POLICY u 1~~ Financial reportingl:bancshe The Recipient shall provide the World Bank with the following financial reports, which are prepared in accordance with the guidelines by the World Bank. 1. Balance sheet 2. Statement on Use of Funds by disbursement categories 3. Statement on Use of Funds by project activity or components 4. Designated account statement, Designated account reconciliation statement 5. Statement of Expenditures Received fundsand uses of the Project's financial statements are prepared on the cash basis of accounting. Project accounting should be in accordancewiththe -1-_Financial Managment Manual approved by World Bank. Reporting currency will be USD. MNT incurred costs shall be converted to USD by TDB exchange rate of first 3 Reporting measurement working day of each month. USD incurred costs shall be converted to MNT by TDB exchange rate of that day. Balance as of 31 December 2015 should be considered as beginning balance and account balance should be presented by cumulative amount as of 31 December 2016 in Project financial statements. 5 Monitoring organization World Bank 6. Information System "Sun Systems" accounting software is used to keep record Registration InforarlonSyste and report. Income is recognized when cash is received. Income 7 Income consists of World Bank's financing and bank account interest earnings. E d Disbursement is recognized as expenditure when the money is paid according to the purpose. u 412

14 LI I 0 [11 Project'sDesignated Account in USD should be opened in a 9 Designated account commercial bank according to World Bank's approval. The ceiling of the Designated Account is as follows: 1. GrantTF ,000 USD Procurement guidelinesofworld Bank should be adhered to in the procurement of goods, works and services. Following methods should be used according to procurement plan of 10 Procurement of goods, works reporting period. and services 1. National Competitive Bidding 50,000< 200, Shopping <50, Direct Contracting-all contracts regardless of contract value Should adhere to Consultantselection guidelines of World Bank. Following methods should be used according to procurement plan of reporting period. 1. Quality-cost based selection 100,000 Po e o2. Less-cost selection- Assignment meeting Procrent orequirement of Para 3.6 of Consulting guideline. 3. Consultant's Qualification Selection- Assignment meeting the requirement of Para. 3.7 of Consultant guideline 4. Individual Consultant Selection -Assignment meeting the requirement of Para. 5.1 and I U LI

15 NOTES 3.FINANCIAL STATEMENT INDICATORS A. Cash and cash equivalents Designated account: UD Bank name Account name Account Aunt number Trade and Development Designated account , , Bank I-/USD/ , Amount 198, ,509.00' Total 198, / USD/ The project does not have small fund and sub-account. Expenditures occurred in rural areas and by cash are disbursed from non-governmental organization's general account and are replenished from designated account at the end of every month. B. Project disbursement Cumulative disbursement of the Project by disbursementcate1ory: - /USD/ Disbursement 7 1 Accumulated Accumulated Performanc Total Budget as of 2016 as of e cat -egr percentage Goods 442, , , , % Consultants' services 495, , , , % Training 1,200, , , ,005, % Civil works 27, , , % Community Block 117, , , , Grants 85.1% Operating costs 175, , , , % Total amount 2,457, ,805, , ,197, % / USD/ Components Total Budget Actual Fluctuation Disbursement Strengthening_ schoo _ I Strengthening school disbursement percentage preparation programs for new school entrants 731, , (107,741.78) 115% (5 to 6 years of age) in the community 2 Introducing extracurricular afterschool programs in schools for vulnerable 623, , , % children (6 to I0years of age) living away from Mentshome 3 Piloting compensatory education programs for primary out-of-school 573, , , % children (6 to 9 years of I

16 4 Project management, monitoring and evaluation, and 528, , , % knowledge dissemination I Total 2,457,579q00 2,197, , %. C. Project financing Finance performance of grant: Source Budget Withdrawal Balance / USD/ Withdrawal Withdrawal percentage Japan Social Development Fund grant 2,457, ,349, , % Total amount 2,457, ,349, , % D. Procurement / USD/ Disbursement category Accumulated as 2016 Accumulated as or of Goods 539, , , Consultants' services 236, , , Training 808, , ,005, Total amount 1,584, , ,924, We investigated processes and documentation for procurement and contracting in accordance with the provisions of World bank's guideline regulations. The total number of procurement and service contracts was 17 with total value of 142, USD (including 15 contracts for purchasing goods and services worth 103, USD, 2 contracts for consulting and auditing services worth 39, USD). We have traced all contracts,evidential documents pertaining to the supplier selection and purchasing procedures and found that there were no material exceptions. E. Operating Costs /USD/ # Expenditure Cumulative I Project staff salary 59, , , Office rent 48, , , Recruitment 4, , Communication 4, , Stationery Other support costs 4, , , Total amount 121, , , F. Designated account net interest earnings / USDI Bmnkname Account number Cumulative Trade and Development Bank , , , Amount 1, , ,286.26