World Bank Document · 2017. 8. 31. · WA-15 4 20-Apr-2017 31,896.21 20-Apr-2017 - ... ss.. s. EJ 557 "NIISLEL AUDIT" LLC lC g -Certified audit, appraisal and accounting consultancy

* "NIISLEL-AUDIT" LLC

AUDITOR'S REPORTImproving Primary Education Outcomes For The Most

Vulnerable Children in Rural Mongolia ProjectNo.TF012100

Financial statements as of December 31, 2016

Ulaanbaatar 2017

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"NIISLEL AUDIT" LLCCertified audit, appraisal and accounting consultancy company

INDEPENDENT AUDITOR'S REPORTTo: Mr. Mitsuaki Toyoda Country Director

Improving Primary Education Outcomes forThe Most Vulnerable Children in Rural Mongolia Project

"Save the children" Non-Governmental OrganizationGrant No: TF012100

We have audited the Financial Management Reports comprising the balance sheet, project sourceand uses of funds by project activity, disbursement report and the designated account statementof Improving Primary Education Outcomes for The Most Vulnerable Children in Rural MongoliaProject Grant No: TF012100 for the year ended December 31, 2016. The management ofImproving Primary Education Outcomes for The Most Vulnerable Children in Rural MongoliaProject is to prepare the Financial Management Reports on the cash receipts and payments basisin conformity with International Public Sector Accounting Standards (IPSAS). On this basis,cash receipts are recognized when received and cash expenditures are recognized when paidrather 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 theInternational Auditing and Assurance Standards Board of the International Federation ofAccountants. These standards require that we plan and perform the audit to obtain reasonableassurance about whether the interim financial reports are free of material misstatement. An auditincludes examining on test basis, evidence supporting the amounts and disclosures in the interimfinancial reports. An audit also includes assessing the accounting principles used and significantestimates made by management as well as evaluating the overall statement presentation. Webelieve our audit provides a reasonable basis for our opinion.

In our opinion, the Financial Management Reports have been prepared in accordance withInternational Public Sector Accounting Standard issued by the Public Sector Committee of theFederation 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 haveapplied to the purpose intended in the Grant Agreement, Grant No: TFO 12100.

Utaanbaalar city, Sukhbaatar district, Saga toiruu-44 Phone/Fax: 31-89-18, 70120095E-mail: [email protected]

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Japan Social Development Fund -TF012100"IMPROVING PRIMARY EDUCATION OUTCOMES FOR THE MOSTVULNERABLE CHILDREN IN RURAL MONGOLIA PROJECT-130760

AUDITED BALANCE SHEET(as of 31 December 2016)

(USD)

2015.12.31 2016.12.31ASSET

CashSmall fund /MNT/ . .Designated account /USD/ 198,325.80 157,509.00

Total cash 198,325.80 157.509.00

NON-CURRENT ASSETGoods 539,811.65 643,433.95Consultant's services 236,936.30 276,147.08Training 808,016.25 1,005,166.97Civilworks 27,202.46 27,202.46Community Block Grants 72,488.49 99,618.39Operating costs 121,232.81 146,077.40Non-financed funds 209.65 0.01

Total 1,805,978.61 2,197,686.26

TOTAL ASSET 2,004,304.41 2,355,195.26

LIABILITIES AND SOURCES

SourcesGrant Fund from Japan Social Development Fund 2,000,579.00 2,349,909.00"Save the Children" Non-governmental Organization Fund

Total sources 2,000,579.00 2,349,909.00Bank net interest income

Designated account net interest income 3,725.41 5,286.26Total net interest income 3,725.41 5,286.26TOTAL LIABILITIES AND SOURCES 2,004,304.41 2,355,195.26

Mitsuaki Toyoda Gereltuya Ts.Country Director C Project Manager

Bulgan B.K nFinance Manager d

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"NIISLEL AUDIT" LLC-1 Certified audit, appraisal and accounting consultancy company


Improving Primary Education Outcomes for

The Most Vulnerable Children in Rural Mongolia Project"Save the children" Non-Governmental Organization

Grant No: TF012100

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 12100.

We conducted our audit in accordance with generally accepted auditing standards thataccordingly included examination, on a test basis, of evidence supporting the amounts anddisclosures in the statement of Sources and User of Funds. An audit also includes assessing theaccounting principles used and significant estimates made by management as well as evaluatingthe 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 internalcontrols and procedures involved in their preparation can be relied upon to support the

application for credit withdrawals.

"Niie t"&LC

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Ulaanbaatar city, Sukhbaatar district, Baga toiruu-44 Phone/Fax: 31-89-18, 70120095E-mail: [email protected]

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AUDITED SOURCES AND USES OF FUNDS(as at 31 December 2016)

(USD)EJi Accumulated as Accumulated asof 31.12.2015 of 31.12.2016

SOURCES OF FUNDS:

Beginning balance of monetary assetGrant Fund from Japan Social Development Fund 2,000,579.00 349,330.00 2,349,909.00"Save the Children" Non-governmental OrganizationFundNon-financed source

Total sources 2,000,579.00 349,330.00 2,349,909.00Bank net interest income 3,725.41 1,560.85 5,286.26

Total other sources 3,725.41 1,560.85 5,286.26TOTAL SOURCES OF FUNDS 2,004,304.41 350,890.85 2,355,195.26

USES OF FUNDSGoods 539,811.65 103,662.30 643,433.95Consultants' services 236,936.30 39,210.78 276,147.08Training 808,016.25 197,150.72 1,005,166.97Civil works 27,202.46 - 27,202.46Community Block Grants 72,488.49 27,129.90 99,618.39Operating costs 121,232.81 24,844.59 146,077.40Amount withdrawn and not yet claimed 290.65 (290.64) 0.01TOTAL DISBURSEMENT 1,805,978.61 391,707.65 2,197,686.26

Financing balance 198,325.80 (40,816.80) 157,509.00Designated account 198,325.80 (40,816.80) 157,509.00Operating accountTOTAL CASH AND CASH EQUIVALENTS 198,325.80 (40,816.80) 157,509.00

Mitsuaki Toyoda Gereltuya Ts.Country Director Project Manager

RuFinance Manager

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"NIISLEL AUDIT" LLCCertified audit, appraisal and accounting consultancy company

INDEPENDENT AUDITOR'S REPORT

To: Mr. Mitsuaki Toyoda Country Director


"Save the children" Non-Governmental Organization

Grant No: TF012100

f r1 We have audited the accompanying the Statement of Expenditures (SOEs) of Improving PrimaryEducation Outcomes for The Most Vulnerable Children in Rural Mongolia Project submitted tothe World Bank during the year ended December 31, 2016 in support of credit withdrawals underthe Grant Agreement, Grant No: TFO 12100.

We conducted our audit in accordance with generally accepted auditing standards thataccordingly included examination, on a test basis, of evidence supporting the amounts anddisclosures 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 overallstatement 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 andprocedures involved in their preparation can be relied upon to support the application for creditwithdrawals.

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Ulaanbaatar city, Sukhbaafar district, Baga toiruu-44 Phone/Fax 31-89-18, 70120095E-mail: [email protected]

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AUDITED SUMMARY OF APPLICATION FOR WITHDRAWAL

(as at 31 December 2016)

(US1Claimed Financing

Number Note date Amount date AmountCumulative as of 31 December 2015 1,805,730.86 22000,579.00Reference 1 2 3 4WA-12 4 21-Apr-2016 70,135.25 22-Apr-2016 120,000.00WA-13 4 22-Sep-2016 108,404.54 27-Sep-2016 109,330.00WA-14 4 02-Dec-2016 121,012.22 02-Dec-2016 120,000.00WA-15 4 20-Apr-2017 31,896.21 20-Apr-2017 -

4 20-Apr-2017 60,550.07 20-Apr-2017 -Total as of 31 December 2016 391,998.29 3493o0.00

Total 2,197 729.15 2-349,909.00

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 paiddirectly from World bank.

3. These applications for withdrawals disbursed in previous year and received financing fromWorld bank in reporting year.

4. These applications for withdrawals disbursed in reporting year, but not claimed from Worldbank.


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"NIISLEL AUDIT" LLClC g - Certified audit, appraisal and accounting consultancy company

Date: . ,.



"Save the children" Non-Govern mental OrganizationGrant No: TF012100

We have audited the accompanying the Designated Account Statement of Improving PrimaryEducation Outcomes for The Most Vulnerable Children in Rural Mongolia Project submitted tothe World Bank during the year ended December 31, 2016 in support of credit withdrawals underthe Grant Agreement, Grant No: TFO 12100.

We conducted our audit in accordance with generally accepted auditing standards thataccordingly included examination, on a test basis, of evidence supporting the amounts anddisclosures in the Designated Account Statement. An audit also includes assessing theaccounting principles used and significant estimates made by management as well as evaluatingthe overall statement presentation. We believe our audit provides a reasonable basis for ouropinion.

In our opinion, the Designated Account Statement submitted together with the internal controlsand procedures involved in their preparation can be relied upon to support the application forcredit withdrawals.

"Nii e1-#di'LC

Ulaanbaatar city, Sukhbaatar district, Saga toiruu-44 Phone/Fax' 31-89-18, 70120095E-mail: [email protected]


AUDITED STATEMENT OF DESIGNATED ACCOUNT(as at 31 December 2016)

PART A- ACCOUNT TRANSACTIONS (USD)2015/12/31 2016/12/31

Beginning balance 76,973.61 198,325.80Add:

Advance received from Japan Social Development Fund -Funds received from Japan Social Development Fund on that year 803,535.67 349,330.00Net interest of account balance 1,128.41 1,560.85

Deduct:Goods 178,325.78 103,662.30Consultants' services 47,498.70 39,210.78Training 380,352.62 197,150.72Civil works -Community Block Grants 37,823.85 27,129.90Operating costs 39,063.19 24,844.59Amount withdrawn and not yet claimed 247.75 (290.64)

Ending balance 198,325.80 157,509.00

PART B- ACCOUNT RECONCILIATION

Designated account balance as of year ending 198,325.80 IS7,509.00Add:

Amount withdrawn and not yet claimedNon-financed sources 51,730.64 60,550.08Paid for bank service -

Deduct:

Net interest paid for account balance 3,725.A1 5,286.26Non-financed sources

Total advance recorded in designated account 246,331.03 212,772.82


Bulgan B.Finance Manager

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NOTE 1. PROJECT INTRODUCTION

Project name: Improving primary education outcomesfor the most vulnerable children in ruralMongolia

Project address: Chingeltei district, Khoroo 1, 4 Floor,Arizona Centre

Grant number: Japan Social Development Fund Grant-TFO 12100

Implementing agency "Save the Children" Non-governmentalU organizationContract approval date 2012.02.15Duration of the project 2012.06.21-2017.06.21oProject total budget 2,637,579USD

Objective:

UThe project aims to improve quality, performance, and access to pre school and primary schooleducation for 7500 children aged between 5-10 in 30 sourns of the Arkhangai, Uvurkhangai,fl Domnod, Sukhbaatar provinces.

The development objective of the project is to improve the education outcomes of some 7,500most vulnerable children (aged 5-10) in four educationally underperfoning and underservedrural aimags (Dorod, Sukhbaatar, Arkhangai and Uvurkhangai) of Mongolia. The project iscomprised 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; andcommunity mobilization);

* Training modules and materials on school readiness developed for parents, schooladministrators, kindergarten/primary teachers, and dormitory staff;

* Leaning resource materials on school preparation produced for 10,0000 m v children/families;* 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 schoolpreparation 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 agechildren living away from home (development of after-school programs; capacity buildingand technical support; program delivery support; and community participation); and

* A school guidance manual on after-school programs developed and 30 soum schools (5teachers 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 ruralcommunities (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-learningvideoprograms) developed and piloted;

* Atleast 1,000 teaching and learning resource materials developed, produced, anddisseminated;

* Training for at least 140 teachers,community volunteers and mentor parents trained onindividual teaching/coaching/monitoring techniques and program delivery;

* At least 300 children enrolled in the alternative lower-primary education equivalencyprograms;

* Capacity of 34 soum/aimag schools or enlightenment centers to deliver program activitiesimproved (e.g., setting up of resource libraries);

* Up to 30 CEC-s provided with community block grants to promote the program deliveryand reach; and

* Project-produced teaching and learning resource materials uploaded on to NFDE'sQ website for wider circulation and use.

New approaches and innovations

* A School Readiness Toy and Equipment library will be established in each of the 30soums.

* 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 pilotEl basis.* Alternative lower-primary,home-learning education curriculum (gradesl-3) and

corresponding teaching and learning materials will be developed and piloted, including aseries of self-learning video programs for parents of children in Grade 1-3.

Project source of funds:

World Bank will provide an amount of 2,457,579/two million four hundred fifty seven thousand fivehundred seventy nine/ USD Grant from Japan Social Development Fund according to RecipientI agreement. Grant will be disbursed in accordance with following category.

/USD/Component Component name Budget

I Strengthening school preparation programs for new school entrants 731,731.00J5 toyears of ge in the community

I

2 Introducing extracurricular after-school programs in schools for 623,913.00vulnerable children (6 to 1Oyears of age)living away fromparents/home

3 Piloting compensatory education programs for lower-primary out- 573,287.00of-school children (6 to 9 years of age) in rural communities

4 Project management, monitoring and evaluation, and knowledge 528,648.00dissemination

....... Total Project budget 2,457,579.00

/USD/Fxpenditure categ Amount Financing percentage Total

Consultants' services, training, 2,165,571.00 100% 2,165,571.00goods, civil worksCommunity Block Grants 117,000.00 100% 117,000.00

Operating Costs 175,008.00 100% 175,008.00Total amount 2,457,579.00 100% 2,457.579.00

NOTE 2. ACCOUNTING POLICY

The Recipient shall provide the World Bank with thefollowing financial reports, which are prepared inaccordance with the guidelines by the World Bank.1 . Balance sheet2. Statement on Use of Funds by disbursement categoriesu 1~~ Financial reportingL:Bancshe 3. Statement on Use of Funds by project activity or

components4. Designated account statement, Designated account

reconciliation statement5. Statement of ExpendituresReceived fundsand uses of the Project's financialstatements 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 shallbe 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 TDBexchange rate of that day.Balance as of 31 December 2015 should be considered asbeginning balance and account balance should be presentedby cumulative amount as of 31 December 2016 in Projectfinancial statements.

5 Monitoring organization World Bank

. Information System "Sun Systems" accounting software is used to keep record6 Registration InforarlonSyste and report.

Income is recognized when cash is received. Income7 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.

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Project'sDesignated Account in USD should be opened in a

9 Designated account commercial bank according to World Bank's approval. Theceiling of the Designated Account is as follows:

1. GrantTF012100-250,000 USDProcurement guidelinesofWorld Bank should be adhered toin the procurement of goods, works and services. Following

[11

methods should be used according to procurement plan of

10 Procurement of goods, works reporting period.and services 1. National Competitive Bidding 50,000< 200,000

2. Shopping <50,0003. Direct Contracting-all contracts regardless of

contract valueShould adhere to Consultantselection guidelines of WorldBank. Following methods should be used according toprocurement plan of reporting period.

1. Quality-cost based selection 100,000Po e o2. Less-cost selection- Assignment meetingProcrent orequirement of Para 3.6 of Consulting guideline.

3. Consultant's Qualification Selection- Assignmentmeeting the requirement of Para. 3.7 of Consultantguideline

4. Individual Consultant Selection -Assignmentmeeting the requirement of Para. 5.1 and 5.3

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NOTES 3.FINANCIAL STATEMENT INDICATORS

A. Cash and cash equivalents

Designated account:_____________ _/ USD/

Account UD

Bank name Account name Aunt 2015.12.31 2016.12.31numberTrade and Development Designated account 452566696 198,325.80 157,509.00

|Bank __I-/USD/.42666.18,2.0 175Amount 198,325.80 157,509.00'

Total 198,325.80 1571509.00

The project does not have small fund and sub-account. Expenditures occurred in rural areas and bycash are disbursed from non-governmental organization's general account and are replenished fromdesignated account at the end of every month.

B. Project disbursement

Cumulative disbursement of the Project by disbursementcate1ory: - /USD/

Disbursement 1 7 Accumulated Accumulated PerformancTotal Budget as of 2016 as of e

cat -egr 31.12.2015 31.12.2016 percentageGoods 442,841.00 539,811.65 103,662.30 643,473.95 145.3%Consultants' 495,560.00 236,936.30 39,210.78 276,147.08 55.7%servicesTraining 1,200,170.00 808,016.25 197,150.72 1,005,166.97 83.8%Civil works 27,000.00 27,202.46 - 27,202.46 100.7%

Community Block 117,000.00 72,488.49 27,129.90 99,618.39 85.1%Grants ___ ________ _______ ________ _______

Operating costs 175,008.00 121,232.81 24,844.59 146,077.40 83.5%Total amount 2,457,579.00 1,805,687.96 391,998.29 2,197,686.25 89.4%

/ USD/Components Total Budget Actual Fluctuation Disbursement

I Strengthening_ _ schoo disbursement percentageI Strengthening school

preparation programsfor new school entrants 731,731.00 839,472.78 (107,741.78) 115%(5 to 6 years of age) inthe community

2 Introducingextracurricular after-school programs inschools for vulnerable 623,913.00 529,337.79 94,575.21 85%children (6 to I0yearsof age) living awayfrom Mentshome

3 Piloting compensatoryeducation programs forprimary out-of-school 573,287.00 455,784.13 117,502.87 80%children (6 to 9 years of

I

4 Project management,monitoring andevaluation, and 528,648.00 373,091.55 155,556.45 71%knowledgedissemination

I Total 2,457,579q00 2,197,686.25 259,892.75 89%

. C. Project financing

Finance performance of grant:/ USD/

WithdrawalSource Budget Withdrawal Balance Withdrawal

percentageJapan Social Development Fund grant 2,457,579.00 2,349,909.00 107,670.00 95.62%

Total amount 2,457,579.00 2,349,909.00 107,670.00 95.62%D. Procurement

/ USD/Disbursement category

Accumulated as 2016 Accumulated as orof 31.12.2015 31.12.2016

Goods 539,811.65 103,662.30 643,433.95Consultants' services 236,936.30 39,210.78 276,147.08Training 808,016.25 197,150.72 1,005,166.97

Total amount 1,584,764.20 340,023.80 1,924,748.00

We investigated processes and documentation for procurement and contracting in accordance with theprovisions of World bank's guideline regulations. The total number of procurement and servicecontracts was 17 with total value of 142,873.08 USD (including 15 contracts for purchasing goodsand services worth 103,662.30 USD, 2 contracts for consulting and auditing services worth 39,210.78USD). 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 2015 2016 CumulativeI Project staff salary 59,796.87 17,999.17 77,796.042 Office rent 48,472.01 3,169.49 51,641.503 Recruitment 4,267.90 0 4,267.904 Communication 4,089.28 717.33 4,806.615 Stationery 331.91 128.59 460.506 Other support costs 4,274.84 2,830.01 7,104.85

Total amount 121,232.81 24,844.59 146,077.40

F. Designated account net interest earnings

/ USDIBmnkname Account 2015 2016 Cumulative

numberTrade and Development Bank 452566696 3,725.41 1,560.85 5,286.26

Amount 1,712.19 1,560.85 5,286.26

Documents

World Bank Document · 2017. 8. 31. · WA-15 4 20-Apr-2017 31,896.21 20-Apr-2017 - ... ss.. s. EJ 557 "NIISLEL AUDIT" LLC lC g -Certified audit, appraisal and accounting consultancy