Public Disclosure Authorized Public Disclosure Authorized Ministry of Education and Higher Education Republic of Lebanon - Second Education Development Project - EDP I - Loan# 7966 Report and financial information for the period from 1 January 2014 to 31 December 2014 Public Disclosure Authorized Public Disclosure Authorized
Second Education Development Project - EDP II - Loan# 7966 Report and financial information for the period from I January 2014 to 31 December 2014 Page Independent Auditor's Report 1-2 Statement of cash receipts and payments by category 3 Detailed statement of cash payments classified by component 4 Statement of movements in the Designated Account 5 Notes to the financial information 6-9 List of signed contracts Appendix A
pwc Independent Auditor's Report to the Ministry of Education and Higher Education, Republic of Lebanon Report on the financial information We have audited the accompanying financial information of the Second Education Development Project (EDP II) ("the Project") which comprises: (i) Statement of cash receipts and payments by category; (ii) Statement of cash payments classifying the uses of funds for the period from I January 2014 to 31 December 2014; (iii) Statement of movements in the Designated Account; and (iv) the notes to the financial information. The financial information has been prepared by the Education Sector Development Secretariat ("ESDS") in accordance with the accounting policies described in note 2 of the financial information, as approved by the World Bank, and as required by the terms of the Financial Operational Manual of Loan No. LE-7966, dated April 2012. The ESDS's responsibility for the financial information The ESDS is responsible for the preparation of this financial information in accordance with the accounting policies described in note 2 to the financial information. This includes determining that the basis of accounting set out in note 2 is an acceptable basis for the preparation of the statement in the circumstances, and for such internal control as the ESDS determines is necessary to enable the preparation of financial information that is free from material misstatement, whether due to fraud or error. Auditor's responsibility Our responsibility is to express an opinion on this financial information based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial information is free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial information. The procedures selected depend on the auditor's judgement, including the assessment of the risks of material misstatement of the financial information, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation of the financial information in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial information. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. PricewaterhouseCoopers, Saba House Bldg., Block B/C, Said Freiha Str., Haznih, Lebanon, MoF # 95693 P.O. Box 11-3155, Beirut, Lebanon, Telephone +961 (5) 4286oo, Facsimile +961 (5) 951979, w
Independent Auditor's Report (continued) to the Ministry of Education and Higher Education, Republic of Lebanon Opinion In our opinion, the financial information for the Project for the period from I January 2014 to 31 December 2014 presenting the sources and uses of fhnds, the expenditures by loan component and the movement in the Designated Account, is prepared, in all material respects, in accordance with the accounting policies described in note 2 to the financial information. Basis of accounting and restriction on distribution and use Without modifying our opinion, we draw attention to note 2 to the financial information, which describes the basis of accounting. The financial information is prepared to enable the ESDS to meet its reporting obligations to the World Bank under the terms of the Loan Agreement No. LE-7966. As a result, the financial information may not be suitable for another purpose. Our report is intended solely for the Ministry of Education and Higher Education, Republic of Lebanon and the World Bank and should not be distributed to or used by parties other than the Ministry of Education and Higher Education, Republic of Lebanon and the World Bank. %-A C(U-" ) Beirut, Lebanon 4 August 2015 7023
Second Education Development Project - EDP II - Loan# 7966 3 Statement of cash receipts and payments by category for the period from I January 2014 to 31 December 2014 Note From From inception I January to 29 November 2012 to 31 December 2014 31 December 2013 USS USS Sources of funds IBRD loan funds 6 1,163,145 850,576 IBRD loan direct payments 6-230,750 1,163,145 1,081,326 Uses of funds by project component Early childhood education 4 230,235 - Education sector policy development and management 5 621,031 946,873 851,266 946,873 Incremental operating costs Project management and operating costs 21,672 10,703 872,938 957,576 Surplus 290,207 123,750 The notes on pages 6 to 10 are an integral part of this financial information.
Second Education Development Project- EDP II - Loan# 7966 4 Detailed statement of cash payments classified by component for the period from I January 2014 to 31 December 2014 Note From From inception I January to 29 November 2012 to 31 December 2014 31 December 2013 us$ US$ Early childhood education Quality and quantity of KG Schools 4 230,235 Education sector policy development and management Institutional capacity development and efficiency Information for planning 5 118,072 102,983 and management 5 Sector development management, 19,800 monitoring and evaluation 5 502,959 824,090 621,031 946,873 Incremental operating costs Project management and operating costs 21,672 10,703 Total expenditures by loan component and sub-components 872,938 957,576 The notes on pages 6 to 10 are an integral part of this financial information.
Second Education Development Project - EDP 11 - Loan# 7966 5 Statement of movements in the Designated Account From From inception 1 January to 29 November 2012 to 31 December 2014 31 December 2013 UsS USS Designated Account balance at beginning of period 123,750 - Add: IBRD loan funds 1,163,145 850,576 IBRD loan direct payments - 230,750 1,163,145 1,081,326 Less: Uses of funds (872,938) (957,576) Designated Account balance at end of period 413,957 123,750 The notes on pages 6 to 10 are an integral part of this financial information.
Second Education Development Project - EDP 11 - Loan# 7966 6 Notes to the financial information for the period from I January 2014 to 31 December 2014 1 Project background The Lebanese Republic has obtained from the International Bank for Reconstruction and Development "IBRD" of the World Bank a loan of US$ 40 million to finance the implementation of the Second Education Development Project (EDP II). The objectives of the Project are to: (i) improve teaching quality and the learning environment in general education and in preschool in the Lebanese Republic; and (ii) increase governance and managerial capacity of the Ministry of Education and Higher Education (MEHE) and schools. The Education Sector Development Secretariat (ESDS) within the MEHE is responsible for overall coordination and implementation of the EDP II. 2 Principal accounting policies and basis of preparation The Education Sector Development Secretariat ("ESDS") prepares the financial information of the Education Development Project 11 (EDP II) ("the Project"). The Project's governing documents provide certain guidelines for governing its financial activities. To ensure observance of limitations and restrictions on the use of financial resources, the ESDS classifies the Project's uses of funds for accounting and reporting purposes under the following components: Coimponent I - Early Childhood Education (US$ 15.7 million): The first component supports increasing the schools' readiness upon students' entry into primary education. This includes increasing infrastructure capacity, enhancing learning resource materials, initiating a program of professional development for preschool teachers, evaluating the implementation of early childhood education programs, and assisting the Ministry of Education and Higher Education to measure the preschool learning environment and students' readiness for first grade. Component 2 - Supporting Improvenents in Quality of Education (US$ 7.6 million): The second component enhances school-based development through improving the quality of teaching and learning at the school level. It also enhances teacher professional development through establishing a national system of professional standards and other mechanisms including induction programs and trainings related to the teachers' professional development.
Second Education Development Project - EDP II - Loan# 7966 7 2 Principal accounting policies and basis of preparation (continued) Component 3 - Education sector policy developient and nanagement (US$ 16.7 million): The third component provides advisory services and technical assistance to the Ministry of Education and Higher Education to strengthen the education sector. Incremental operating costs: consists of necessary incremental expenditures related to the management and implementation of the Project. The Project's expenditures are reflected in the unaudited Interim Financial Reports (lfrs) presented to the World Bank office in Beirut on a quarterly basis. For the period from I January 2014 to 31 December 2014, total cash receipts received from the World Bank amounted to US$ 1,163,145 (from inception 29 November 2012 to 31 December 2013 - US$ 850,576), disbursements made amounted to US$ 872,938 (from inception 29 November 2012 to 31 December 2013 - US$ 957,576) and IBRD loan direct payments amounted to nil (from inception 29 November 2012 to 31 December 2013 - US$ 230,750). The significant accounting policies adopted by the ESDS in the preparation of the statement are as follows: Basis of preparation The financial information has been prepared in accordance with the cash receipts and disbursements basis of accounting. Sources of Funds Funds received are recognised when cash is received. Use of Funds Uses of funds, expenses and other disbursements are recognised when cash is disbursed. Eligible expenditures under the Loan Agreement are used, accounted for and classified in accordance with the conditions of the Loan Agreement and applicable laws and regulations of the ESDS's financial activities.
Second Education Development Project - EDP [l - Loan# 7966 8 3 Project expenditures by loan component From From inception 1 January 29 November 2012 to 31 December 2014 to 31 December 2013 Us$ us$ Early childhood education 230,235 - Education sector policy development and management 621,031 946,873 Project management and operating costs 21,672 10,703 4 Early childhood education 872,938 957,576 Goods 230,235-5 Education sector policy development and management From From inception I January 29 November 2012 to 31 December 2014 to 31 December 2013 US$ Uss Institutional capacity development and efficiency Consultants' services 118,072 102,983 Information for planning and management Goods - 19,800 Sector development management, monitoring and evaluation Consultants' services 407,976 801,277 Training 58,918 22,813 Goods 36,065-502,959 824,090 621,031 946,873
Second Education Development Project - EDP II - Loan# 7966 9 6 IBRD loan funds and direct payments received The below table lists the IBRD loan funds received in the Designated Account for the period from I January 2014 to 31 December 2014: Receipt dates uss 20 January 2014 376,250 7 July 2014 157,388 10 October 2014 305,149 5 December 2014 324,358 Total IBRD loan funds 1,163,145 There were no direct payments made by the World Bank to the Project for the period from I January 2014 to 31 December 2014. 7 Movements on the Designated Account The table below shows the movement on the Designated Account from I January 2014 till 31 December 2014: UsS Debit Credit Balance At 1 January 2014-123,750 123,750 31 January 2014 40,521 376,250 459,479 28 February 2014 42,419-417,060 31 March 2014 - - 417,060 30 April 2014 36,655-380,405 31 May 2014 37,793-342,612 30 June 2014 35,670-306,942 31 July 2014 87,012 157,388 377,318 31 August 2014 182,467-194,851 30 September 2014 18,882-175,969 31 October 2014 305,476 305,149 175,642 30 November 2014 38,757-136,885 31 December 2014 47,286 324,358 413,957 Designated Account at 31 December 2014 872,938 1,286,895 413,957
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