Office of the

Auditor-General of Pakistan Special Sector Audit Wing

Constitution Avenue

Islamabad

No.PA/FAP/Sindh/SSA/F-14/ r c, I Dated: 30 -12-2016

To, 1.

Subject:-

The Secretary Economic Affairs Division, Government of Pakistan Pak Secretariat Block-C Islamabad

The Country Director,

World Bank, Resident Mission 20A, Shahrah-e-Jamhuriat

G-5/ 1, Islamabad

FOREIGN AIDED PROJECTS (FAPs) AUDIT REPORTS

Financial Attest Audits of the following F AP Audit Report has been conducted by this office:

S.No Name of Projects Name of Development Partners

1. Sindh Water Sector Improvement Project WB

2. Sindh Global Partnership for Education WB

3 Sindh Barrages Improvement Phase-I Project WB

4. Sindh Public Sector Management Reform Project WB

s.v 2"0 Sindh Education Sector Reform Program . WB

6. Sind.h Irrigated Agriculture Productivity Enhancement WB Project

7. Enhanced Nutrition for Mothers and Children WB

8. Sindh Agriculture Growth Project (Agriculture) WB

9. Sindh Agriculture Growth Project (Livestock) WB

10. Sindh Skills Development Project (BBSYDP) WB

11. Sind.h Skills Development Project (STEVT A) WB

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Financial Attest Audit Report on the Accounts of Second Sindh Education Sector Project (SERP-11), for the Financial Year 2015-16 International Development Association Loan No. 5218-PK & DCI­ASIE/2011/023-009 (EC).

Auditor-General of Pakistan

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PREFACE

The Auditor-General conducts audits subject to Article l 69 and 170 of the Constitution of the Islamic Republic of Pakistan 1973. read with sections 8 and 12 of the Auditor-General's (Functions, Powers and Terms and Conditions of Service) Ordinance 200 I. The audit of was carried out accordingly.

The Directorate General of Audit Sindh conducted audit of the Second Sindh Education Sector Reforms Project during 20 16-17 for the financial year 20 l 5-16 with a view to reporting significant findings to stakeholders. Audit examined the economy, efficiency, and effectiveness aspects of the Project. In addition. Audit also assessed, on test check basis whether the management complied with applicable laws, rules, and regulations in managing the Project. The Audit Report indicates specific actions that, if taken, will help the management realize the object ives of the Project. Most of the observations included in this report have been finalized in the light of discussions in the exit meeting.

The Audit Repo11 consists of two parts, Part-I contains Auditor's Report (Audit Opinion) and Financial Statements. Part-11 conta ins Executive Summary, Management Letter and Audit Findings .

The Audit Repo11 is submitted to the International Development Association (IDA) in terms of Development Credit between International Development Association & Islamic Republic of Pakistan.

Dated: 29- 12-20 16 Place: Karachi

~ {Azh eed)

Dire neral

...... ABBREVIATIONS AND ACRONYMS AGP Auditor General of Pakistan ASC Annual Schools Census DDO Drawing and Disbursing Officer EC European Commission ED Education Department EEP Eligible Expenditure Project ERU Economic Reform Unit FD Finance Department GoS Government of Sindh FC Foreign Currency GOP Government of Pakistan TBRD International Bank for Reconstruction and Development IDA International Development Agency IP SAS International Public Sector Accounting Standards ISSAI International Standard of Supreme Audit Institutions LC Letter of Credit NER Net Enrollment Rate

• STD School infrastructure Development MDG Millennium Development Goal

! M&E Monitoring and Evaluation P&D Planning & Development Department

•. PRSP Poverty Reduction Strategy Paper RSU Reform Support Unit SEF Sindh Education Foundation SAT Student Achievement Test SEMIS Sindh Education Management Information System SERP Sindh Education Reforms Program SID School Infrastructure Development SIP School Improvement Plan SMC School Management Committee SPPRA Sindh Public Procurement Regulatory Agency TA Technical Assistance TOP Terms of Partnership

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Preface

I TABLE OF CONTENTS

Abbreviations & Acronyms

Part-I

Part-II

Project Overview

Auditor's Report to the Management

Financial Statements

Management Letter

Executive Summary

l . INTRODUCTION

2. AUDIT OBJECTIVES

3. AUDIT SCOPE AND METI IODOLOGY

4. AUDIT FINDINGS AND RECOMME1 DATIONS

4.1 Organization & Management

4.2 Financial Management

4.3 Procurement & Contract Management

4.4 Construction & Works

4.5 Asset Management

4.6 Monitoring & Evaluation

4.7. Compliance with Grants & Loan Covenants

4.8 Environment

4.9 Sustainability

4.10 Overall Assessment

5. CONCLUSION ACKNOWLEDGEMENT ANNEXURES

PAGE NO.

11

01

02

03-16

17

18

19

20-22

22

22

23

23

23

27

45

54

55

55

64

65

65

65 66 67

• PART-I

· .. I. PROJECT OVERVIEW

2. AUDITOR'S REPORT TO THE MANAGEMENT

3. FINANCIAL ST A TEMENTS

..

,.

Name of Project

(a). Sponsoring Authority

(b) Executing Authority

Date of Commencement.

Loan Closing Date.

Date of Approval.

Date of completion.

Total Project Cost as per PC-I

!DA-Loan No.52 18-PK

European Union

Counter Part Fund.

Progressive Expenditure up to

June 30, 2016

Project Overview

Second Sindh Education Sector Project

World Bank and European Union.

Government of Sindh.

0 1.03. 2014.

30.06. 2017.

14.03.20 13.

30.06.2016.

US $ 2600 million

US$. 400 mi llion

Euro. 030 million.

US$ 2200 million

US $ 2 140 million

Rs.222, 707 million

Expenditure during financial year 2015-16 US$ 891 million

Rs.92,695 million

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Auditor's Report on the Second Sindh Education Sector Reforms Project (SERP-11) Financial Statements

We have audited the accompanying financial statements of Second Sindh Education Sector Reforms Project (SERP-11) executed by Reforms Support Unit Karachi. (DA Loan Agreement No.52 18-PK, & DCI-AS IE/20 l l /023-009(EC) that comprise of Statement of Receipts & Payments. Statements of Comparison of Budget & Actual together with the notes forming part thereof for the year ended .I unc 30. 2016.

Management Responsibility It is the responsibi lity of project management to establish and maintain a system of internal control and prepare and present the Statement of Receipt and Payment in conformity with the requirements of Cash Basis IPSAS. Financial Reporting under the Cash Basis of Accounting Standard.

Auditor's Responsibi lity The responsibility of the auditor is to express an opinion on the financial statements based on the audit conducted. We conducted our audit in accordance with International Standards of Supreme Audit Institutions. Those standards require that we plan and perform the audit to

obtain reasonable assurance about whether the financial statements are free of material misstatements. The audit process includes examining, on a test basis. evidence supporting the amounts and disclosures in the financial statements. It also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall statement presentation. We believe that our audit provides a reasonable basis for our opinion.

Opinion In our opinion:

a) The financial statements present fair!). in all material respects, the cash receipts and payments by the project for the year ended 30111 June 2016 in accordance with Cash Basis IPSAS, Financial Reporting under the Cash Basis of Accounting Standard.

b) fhe expenditure has been incurred in accordance with the requirements of legal agreements.

Dated: 29-12-2016

2

Second Sindh Education Project .Education & Literacy Department, Government of Sindh

Credit Account No. IDA 5218 -PK &DCI-ASIE/201J/023-009 (EC)

Statement of Cash Rccdpts and Payments~or year ended 30th June 2016 ---··

RECE1PTS

Government or Sindh

JD/\·- Eligible Expenditllrc Progrnm & Tl\

Grants from EU

Total Receipts

J>A YMENTS (By Components)

I. Eligible Expenditure Program:

Employee Related Expcndin.1re

Standardized Achievement Test

Grants to School Management Committees (SMC)

Public Private Partnership

Schools specific Budget at (091 & 092)

Monitoring/SEMIS

2. Tec!tnical Assi.m111ce:

Incremental TA s:afli1,g

C1pacity Ouilding

Expenditures Tracking/Monitoring

Tntal Payment

Tota! lncrcas<!/(Dccr~ase} in Cash

2015-16 {Rs in Million)

Rcccipt/l'ay men ts Controlled by

No Government

te

1J 79,647

14 l 1.2 l 7

1,850

92,7 14

15 89.259

i6 145

17 1,250

18 1,372

19 485

20 13

21 i 1,1.3 l ::G

92,695

19

Payme nts by Third Party

D n

2014-15 {Rs in Million)

Receipt/Pay men is Controlled by Government

71.385

I 0.436

1,111

82,932

80.974

146

679

783

36

25

102

17

164

82,926

(,

Paymc nts hy Third Party

D

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Cumulative ( Till JO'h June 2016)

190.:ilO

29.433

2,961

222,'154

215,413

354

2,604

2,993

593

65

22.2 707

247

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c,. .. "' "" ""' "' "" '""'\. y J,~ y- Z28 247

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The annexed notes .l to 25 form an integral part of these financial statements

Second Sindh Education Project Education & Literacy Department, Government of Sindh

Cz-edit Account No. IDA 5218 -PK &DCI-ASIE/2011/023-009 (EC) Statements of Comparison of Budget and Actual Expenditure by Obje~t

For the yenr ended 301h June :!Ul6 ,

Total Budgeted Amount P:irticulars

Note Release

Total Expenditure

2015:16

Variance Expenditure 1-------r----

Employee related expenditure

At Primary Functional At Secondary Fttnctional At Administration Level

Sub-total 15

Original Final

53,540 57, 11 3

34, J73 31,158

3,253 1,219

90,966 89,490

Eligible expenditure Program-Other titan Salaries

Standardized Achicvcme"nt Test Schoo! Mana.gcmcnt Grant to Sindh Education Others (Schools specific Budget at

Monitoring/SEMTS

Sub-total

16

17

18

19

20

Tecl,nical Assistance

lncrcmer.tnl Staffinl!

TA 21

22

200 200

1,500 1,235

1.033 1.440

4.915 3,194

150 I 15

7,798 6,1 84

200 200

165 16-Capacity Buildi ng

Expenditure Tracking 23 I · 250 2so

1 ~ II

56,678

30,208

986

87,871

200

l ,235

1.440

3.066

80

6,021

200

165

250

57,098

31,238

923

s·9,259

145

1,250

1,372

485

13

3,265

l 13

11

47

201<!-15 Amount

5 I ,53 I (5,567) I I

28,568 (2,670) I

874 (49)

80,973

146

679

784

36

25

(8,286)

I I cs1 n I (588) l (449)

12

(1 ,595)

I 02 (1 1)

I 7 6

164 I 17

"I.,

-1 1%

-9%

-6%

-84% I -75%

- i247%

47%

-1"1 %,

38%

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Sub-total 615 615 615 171 2S3 112

Gr:md Total 99,379 96.289 94,507 92,697 82,926 (9,7i0)

PPRS l,OJ3 1,440 1.440 1,372 784

The annexed notes l to 25 form an integral part of these financial statements.

Second Sindb Education Project Education & Literacy Department, Government of Sindh

Credit Account No. IDA 5218 -PK &DCI-ASIE/2011/023-009 (EC) For the year ended 30 June, 2016 .

Notes to the Financial Statements 1. REPORTING ENTITY AND IMPLEMENTATION ARRAGNEMENTS.

t588)

Agreement dated 28th November 2014 entered into between the.INTERNATIONAL DEVELOPMENT ASSOCIATION ("Association") and the PROVINCE OF SlNDH ("Sindh") ("Project Agreement") in connection with the Financing Agreement ("Financing Agreement") of same date between the ISLAMIC REPUBLIC OF PAKISTAN (''Recipient) and the Association. Sindh declares its commitment to the objectives of the Projecc. Si.ndh shall carry out the Project in accordance with the provisions of the Project Agrcen;ent.

Provincial Government of Sindh (the Government) 1s the reporting entity which cooducLc; its operations under the Rules of Business 1986.These rules were made pursuant to Article 139 of the Constitution of the lslamic Republic of Pakistan. 1973,(the Constitution) and envisages Provincial Go\ ernment as compnsing of departments and their attached departments.

Institutional and implementation ainngemcnrs for the project build on and strengthen existing arrangements. Govt of Sindh has notified for the whole period of project on J01n December 2012 a steering committee (the ''Steering Committee for SERP 11) headed by the Additional Chief Secretary of Smdh, and comprised of represenrntive from, inter alia, Sindh·s Education and Lite:·acy Department (''SED"). Finance Department, the Local Govenunent Department, the Accountant General Office and the Pro\'incial Procurement Regulatory Authority, Which committee shall be assigned with functions, responsibilit1es, staff and resources in each case satisfactory to the Association, as shall be required for the overall strategic policy guidelines. interdepartmental coordination and oversight support to the 11np!ementation of SERP ll by SED.

The P&D, FD and ED and tbe Sindh Public Procurement Regulatory Agency (SPPRA) take the lead in (1) implementing relevant sub-Projects and meeting DLis and targets; (ii) tracking and reporting on ail activities for which they have assumed responsibility; (iii) providing sectoral expertise as needed.

The RSU is responsibie for coordination and monitoring of SER.P efforts, and for the implementation oi core provincial sub-Projects (including the Annual Schools Census, and the incentive Projects to public schools). lt is headed by the Chief Project Manager who reports to the Education Secretary and to the Steering Corrumttee. ln addition, various provincial institutes affiliated with the education sector have responsibilities for other SERP sub-Projects. Similarly districts have key implementation responsibilities I for speci fie sub-Projects ( e.g. rehabilitation works under the TOPs, preparation of merit lists nnd I appomtmen1 of teachers), and in M&E. , '"'" • I

2. BASIS OF CONSOLIDAT ION ~~):

The financial statements have been prepared by consolidating the Salaries of all the emplo:vees work!ng under functional classification 091,092 and 096, grants to Self-Accounting Er.tity i-e Sindh Education Foundation and Other expenditure eligible for reimbursement.

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3. STATEMENT OF COMPLI.A.1~CE

111cse financial statements have been prepared in accordance with the New Accounting Model (NAM). ln December 2000, Auditor General of Pakistan 'prescribed NAM with the approval of the President of Pakistan under Article 170 of the Ccnstitution of Islamic Republic of Pakistan and the implemenution of NAM is an ongoing process. However commitment, asset and liability accounting pra-:tices have not yet been implemented and memorandum registers for assets and commitments do not exist and accounting of liabilities is not done in accordance with NAM.

4. ACCOUNTING CONVENTION AND BASIS OF PREPARATION

J'hesc financial statements have been prepared under the cash basis of accounting which recog!1izt:s transactions and events only "vhen cash is received o:.- paid by the entity. These financial statements have been prepared as per .·tile requirements of NA.M that supports international best practices. The statement of receipts and payments, statements of comparison of budget and actual amounts oy Object and notes fanning parts thereof have been-prepared on the format of Cash Basis IPSAS - Financial Reporting under the Cash Basis of Accounting.

5. REPORTING AND BUDGET PERIOD

The reporting period for these financial Statement is July !to 30th June 2016 and budget period of these financial statements is the financial year 2016-16 (from I July, 2015 to 30 June, 2016).

6. REPORTING CURRENCY

The reporting currency of these financial statements is Pakistani Rupees. ,,

7. S£GNIFICANT ACCOUNTING POLIClES

l. Revenue/Receipt recognition

Revenue is recognized lm the date of receipt of money by the bank or clearance of cheque. Revenue is recognized on a gross basis and any related costs are recorded separately. Receipts representing recovery of any previous uverpayment are adjusted against relevant expenditure, if it occurs in the same financial year.

n. · Recognition of expenditure

Expenditure is recognized on the date when payment is made or cheque is issued. Financial year to which the payments pertain is determined by the date on which a cheque or payment advice is issued. Policies for recognition of expenditure are as follows;

~1. Payments made through chcqul

Expenditure is recognized on the date the cheque is issued.

b. l nter governmen t transfers

Expenditure is recognized on the date the transfer is made by the transferor.

c. Payments directly in bani< accounts

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Direct payments into bank account, expenditure is recognized on the date the payment advice is issued to the bank.

d. Direct payments by State Bank of Pakistan (SBP)

Repayment of loans and other direct payments by the SBP, expendit.l're is recognized on- tbr; date State Bank of Pakistan advises the relevant accounting office.

e. imprest payments

Expenditure is recognized when the req1_lired claim vouchers are submitted and imprest account is reimbursed.

HI. Fore ign currency

Transactions in foreign currencies are recorded in the books at the rates of exchange prevailing on the dale of transaction . Exchange differences arising on settlement of these transactions are recognized in the Statement of Receipts and Payments, but are not disclosed separately.

IV. Cash and cash equivalents

Cash and cash equivalents represent Advance by International Development Authority to the Donor and at the end of financial year this amount documentation is not provided to the

· !DA/World Bank.

V. Assets

VI.

Assets are future economic benefits controlled by the government as a result of past transactions or other past events. Assets are recorded at cost and currently no depreciation is charged. ·

Payment by third .Party

The Govemment also benefits from goods and s1::rvices purchased on its behalf as a result of cash payments made by the third parties during the period by way of loans and contiibutions, in the shape of grants and aid .. The payments made by the thi;·d pmties do not constirute cash receip~s .or payments controiled by the Govenrn1e11t as defined in the Cash Basis lPSAS -Financial Reporting under the Cash Basis of Accounting but do benefit the Gove1:nment, as the Government does not receive cash (including cash equivalents) directly from, or gain control of the bank accoun ts or similar faci li ty established fOi its benefi t by, the third parties. Payments by third parties, if any, are disclosed in the payments by third parties column on the face :): slatement of cash receipts and payments and notes to the financial statements

8. PROJECT OBJECTIVE AND DESCRJJ:>TIONS

The Project Development Objective is to raise school participation by improving sector governance and accountability and strengthening ·administrative systems, measLu·e student achievement, the p;:oject supports the Sindh Government's Second Sindh Education Sector Reform Project (SERP 11). The total cost of the project SERP-11 is $2600 Million for which Sindh Government financing /share is S2200 Million and remaining $400 million is financed by World Bank. T!.1e project is a $400 miilion Sector

. · ~- \nvestment Credit is structured around two components: .. ; '.,, , .. :.. ,

~ -;" ~· Pr9jectcomponents

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The project ts a USS400 million Specific L'Westment Credit which supports the implementation of SERP !l over the period 2013-17. The project comprises of two components: ( l) a results-based component­Component !-which finances specific expenditures under SERP 11, amm.mting to US$393 million (roughly 98.3% of the total Credit); and (2) a Technical Assistance (TA) component-Component 2-which finances essential advisory, technical, capacity-building, and monitoring and evaluation support for SERP Il, amounting to US$7 million. '

Results-based component: Under the results-based component, the event and amolmt of project disbursements will be contingent on the satisfactory achievement of DLls.

Component 1 represents the Eligible Expenditure Project (EEPs) and the credit ainounts are disbursed on the basis of pre-specified results, referred to as Disbursement Linked Indicators (DLls). These disbursement linked indicators (DL!s) are shown in the table l below:

Component 2: Tec/111ical Assistance /Total: USS 7 million; IDA: US$ 7 millio11/

Component 2 represents Technical Assistance ?.nd it has a total US$7 million finance essential technical assistance activities to assist GoS in the implementation ofSERP.

Under the TA component, funds will finance important technical, advisory, and capacity-building support to strengthen fiduciary, environmental management, administrative, and monitoring and eval1.1ation activities. The selected activities would aid Project implementation progress and performance including, importantly, the achievement of DLls. RSU will manage project TA funds and activities. RSU will make TA funps available and procure works, goods, and services to meet the needs of other government departments, entities, and agencies pattnering on SERP-Il related initiatives.

Retroactive Financing of TA amorn1ling to Rs 98.6 Milli on was financed by Govt of Sindh in the FY 2012·· l 3 \vas reimbursed after the effccti ven ess of loan agreement as per financing Agreement.

9. DISBURSEIVlENT LINK INDICATORS (DLIS)

S.# J

Sub Project Pl'oject budgef a11cl e..Y.p emli tu re

Disbursement link Indicators (DLls) Preparation of sound budgets for

111 rm age III e 11 t

2 A1111uol School Census (ASC)

3 Stlldent Achievement Test (SAT)

4 Sc/tool budgets:

Primaiy and secondary education nnd SERP-H initiatives and ensuring that budgetary releases m1d expenditures are made in full and on a timely b1sis Administration of the ASC for govem.ment schools on a regular basis through two distinct channels across districts, namely via a contracted third party and standard government process, accompanied by strengthened administrative procedures, procedures, and practices, and web-based direct reporting by secondary and higher secondary schools to improve the regularity, relevance, and reliability of ASC data Administration of the SAT on a regular basis, Accompanied by third-party review to strengthen the reliability and validity of the test results and the responsible use and dissemination of test results Preparation of school budgets, both salary and no salary components, following transparent, objectiw, and needs-based criteria; and third-part)' support to the districts for managing and monitoring the flow and use

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5 Sc/zoo! (SM Cs)

i'vfanagem ent Committees

6 Schooi system consolidation

7 School infrastructure deFelopment

8

9

brcentive- and accountability-based publi~ financing of the private provision of schoolillg

Education management

10 Teacher management

of school budgets in line with applicable rnles and regulations Stronger due diligence and financial management controls; improved communication of expectations, roles, responsibilities, and redressed avenues to all key parties; support services offered by regions and distrirts to SMCs; and increasing grant use in line wich applicable rnles and regulations Merging of distinct government schools that share the same building, same compound, or are in close proximity and cater to the same local child population into single schools and their reorganization and strengthening to function as single schools Investments in (i) the whole school development of schools with infrastnicture deficiencies, (ii) up gradatio.n of primary schools to elementary schools, and (i ii) consolidated schools, foliowing 0bjective, transparent, and needs-based criteria; compliance with stipulated constrnction quality and school design specifications; third-party screening, support, · monitoring, and certification of construction completion and quality; and pi lot interventions on specific school environmental enhancements Incremental expansion of the SEF PPRS Project; regularization of Project financing; strengthened administrative and monitoring systems; strengthened design and enforccm~nt of inceetive and accountability conditions to improve school performance; and strengthened Project qualification criteria and the rigorous application of niles and procedures to screen rural communities for Project school placement Appointment of specialized cadres of education managers and school headmasters following transparent, objective, merit-based criteria and rigorous mechanisms; contracts with performance terms and conditions; induction trammg, job guidelines, management materials and tools; and a tailored annual performance evaluation process (within the government's standard performance evaluation system) Strengthened merit- and needs-based teacher

recruitment arrangements, procedures, and practices;

teacher contracts with performance terms and

conditions; induction training, job guidelines, teaching materials and tools; and a tailored an nual performance evaluation process (within the government's standard

performance evaluation system). J

The EEPs robe supported by the project accOLmt for about 84.6% of CoS's Project expenditures and ) Bank financing w1JJ support about J 54% of .E:;"EP expenditures o~er the three year period of the credit. The Bank's guidelines on financial management and procurement will be applicable to EEPs. The , ~ .

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frameworks for add;essing social and environmental safeguards endorsed by GoS will be applicable

to all SERP activities:

(In US$ million) S are

(In percent) S indh government IDA

2,200.0 400 .0

2,600.0

84.6% 15.4%

100.0% Total Pricing of DLis Amount in USD

FY2013/14 F1Y2014/15 ' . FY2015/16

DLI Price 9.300,000 each 13,000,000 each 17 ,000,000 each

Amount allocated for Component I 93,000,000 1zu,ooo,odo 170,000,000 -··

10. ELIGIBLE EXPENDITURE PROJECTS

The details of Eligible Expenditure Projects (EEPs) are shown ~elow in Table 2:

Object Code Classification

AOl

A03966

A03975 A06501

A03970

A03973

Object Code Classification

A03980 A03982 A03983

Expenditure Element Description of Object Classification

Employee related expenses of primary secondary and administration sub functions.

Stnndardizecl Achievement Test

School Management Committee Grants '

Public!Priva~e Partnership Grants

Others (Schools specific Budget at 091 & 092 Functional Level)

Monitoring/SEMIS

Technical Assistance

Incremental TA Staffing Capacity Building Expenditure Tracking! Monitoring

11. DISBURSEMENT CONDITIONS AND SCHEDULE

The disbursements for Component 1 of the Project are conditional on the achievement of iO reform actions or results. These · are identified as Disbursement Linked Indicators. In each cycle, the amount eligible for disbursement wiJl be the product of the total number of achieved DUs and the unitmy DLJ

price. Where achievement ofa DLI can11ot be certified, c111 amount equivale11t to the imita1y DLJ price will be withheld. This am~unt will be paid at any later date when such achievement can be ven.ied }J; ,a.,e o/

P_artly met DL./ .Prop0/7/0/.1 of IJ.1,9/ .LJU wou/t7' .be CCJ.h'..JY&>/' /.?.!,:."/ .&'.l.7.:7/'cY.Q..W/DR" WC'//, U £,..,. c.n · . ../ ,c _ ,,../ :,....< /'eU.176 t7't .-< ~ v, './V v... d/77ev /ol- "ff77/C/. ./ //e

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veiifii ~~e.me.ul' ~eDc/~ CJ/.1 07_e ar,v bt:lor., i'ial' !.oe Achievement of .D£J and second is the EEPs. The 1cat10n sources mentioned m the project Appraisal document would be provided. . .

. kJ~J<~~·'. ~-

l2. EUROPEAN UNION SECTOR POLICY SUPPORT PROJ ECTMEE GRANT:

Objective: The Project will help to achieve the education-related MDGs in the Province of Sindh through improving quality and access in Primary and Secondary Education. Purpose: EU sector support will assist the Government of Sindh to improve management and service delivery in the primary (including pre-primary) education sector.

Total Sector Policy Support Project Grant from EU Would be 30 Million out of which 4.5 Million euro would be for TA, the grant of 25.5 Million would be available in FY 2014-15 & FY 2015-16 for review of Triggers for FY 2013-14 & FY 2014-15. Government of Sindh must be in compliance with the General Conditions mentioned in the agreement to become eligible for this grant.

Triggers covering Education Budget, Curriculum, Teachers Training and Students Assessment Executing education sector budgets in full and timely manner to increase level and quality of education sector expenditures in line with education sector plan.

Optimize govcrrunent school facilities and resources and improve asset management through implementation of the School Consolidation Policy and Plan

Cun-iculum Develop, approve. and operationalize Curriculum implementation Framework (ClF) for Sindh.

Textbooks: Review, notify and implement the Sindh Textbook and Material Development Pol icy.

Teachers: All PST teachers are trained and supported in applying the 2006 curriculum I

' Assessment: Student Learning Outcome assessments are aligned with the 2006 curriculum

13. RECEIPT

The amount of financing as the GoS has arrived at during the current financial year ended June 30, 2016 as follows:

Note Rs In Rs 1n

Million Million

Finance by IDA/World Bank l l,217 10,436

Fina.nee by European Union 1,850 l , I 11

Finance by Govt of Sindh 13. l 79,64& 71 ,385

92,715 82,932

13.1 The share of Government of Sindh is arrived at after summing all the expenditure incurred and total increase in cash and then deducting from the fonds received from IDA and EU .

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14. WITHDRAW AL SCHEDULE OF lDA

r ! S:111ctio:1ed 1 l I I

Applied

Wirhdrawal I Application Amount Application Type & Amount

No. Currency Amount in

Exchan in USO

US/XD Date Amount

rvlillion

\

in XDR R

ge rate in PKR

Million

J SSEP-l Reimbursement

I 4-Jun-14 98.57 98.57 ' (TA/$) l

I

SSEP-Il Advance (T A/S) 2 9-Jun-14 98.57 197.14 2

SSEP-IJ! Reimbursement

0.539 4-Jun-14 98.47 53.08 0.539 (TA/S)

SSEP-[Y I Reimbursement (DLI/XDR)

60.35 92.93~ I 8-Jun-14 98.40

7.482 76.037

Receipts for the FY2013-14 96.48 7,831 79.576

SSEP-\' Reimbursement

4.322 6-Jan- IS 625 6.1945 (DU/XDR) 6.1945 I 100.95

SSEP-Vl Advance (T NS) 2 5-Jan- l 5 100.75

202 2 I

SSEP-VII Advance (TA/SJ \ 1.275 9-Jun-15 101.88

!30 1.275

SSEP-VITI Reimbursement

23-Jun- l 5 9,479 I (DLI/XDR) 93.188 101.72 93 .188 Receipt for the FY 2014-15

I l 02.66 I 102.66 lll,436 I

Reimbursement I i SSEP-X (DU/XDR) I 76.252 107.227 J 16-Jun- I 6 104.61

11217 107.227

Receipt for the FY 2015-16 I lll7.227

Total 29,484 289.463

15. EMP LOYE.E RELATED EXPENSES FOR PRIMARY AND SECONDARY EDUCATION

Pay and allowances for district, regional and provincial employees of Educational Literacy Department in or associated with primary and secondary education. These employees comprise of those in primary (91102), administration of p1imary education (91103), secondary (92101 ), administration of secondary education (92102), and the Secretariat (9610 l).

SALAIUES AND EMPLOYEE BENEFITS Pay of Officers Pay of Other Staff Allowances

Note

15

Rs. in Million 5,044 3.251

44,471 36,015

39,745 41,707

89,259

16. ST ANDARDlSED ACHIEVMENT TEST

The full set o f costs (145 Million), at all levels (province to school), for all stages (from test design to data analysis and findings dissemination), associated with the annual administration of the SAT in selected grades in government schools. The SAT budget importantly covers the costs o i the contract offered to a third-party organization to undertake the SAT. The budget for SAT is assigned to RSU, and RSU is directly responsible for expenditures incurred. Dur ing the year ended 301

h June 2016, 145 Mill ion expenditure was booked.

17. SCHOOL MANAGEMENT COM MIITEE (SMC)

School Management Conunittee (SMC) Grants are transferred to commercial bank accounts of SM Cs on the advice of Finance Department (FD) to the St!).te· Bank of Pakistan ,through Accountant General , Sindh aimed activating primary and secondary schools and to support school improvement.

During the financial year 2015-16, total SMC grants are distributed as follows:

S.No. P articulars

Primary Schools

2 Middle Schools

3 Higher Secondary Schools

Numbers

37,942

2,114

2,366

Average

SMC

Fund in

Rs

23,051

60,442

104,803

2016

Total (Rs

in Million)

874.601

127.774

247.964

Numbers

20,079

1,050

1,342

Average SMC

Fund in Rs

23,417

50,018

108,462

2015

Total (Rs in Million)

470.199

63.019

145.556

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18. PROMOTING PRlVATE SCHOOLING IN RURAL SINDH

The fuil set of costs associated with the administration of the .PPRS Project by SEF. [t includes the benefits, cash and in-kind. offered to Project schools as well as all Project administrative costs.

All expenditures related to the PPRS Project administered by SEF as booked in the SEF accounting system for the sole purpose of recording PPRS Project-related expenditures

Public Private Partnerslup grants covers the subsidies provided to private schools for each child enrolled as well as implementation and monitoring costs of the Promotion of Private School in Sindh (PPRS) ProJect. The amount of the subsidy is paid to student through Sindh education foundation , the selection of schools are made through public EOis , students are paid Rs.350/- per child and Rs.450/- for each girl in the gender differentiated Project per month are paid.

Head of Account Notes 2016 2015

School Support Cost 1,128 489

116 69

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