% dHF A S OFFICE

hone: 675 3012200 Fa (675 325 2872 m mail: agopng ü ago gox pi Website: I w y w.ag

September 14. 2015

The SecreIaryDepartime niI resurPO0 llox 710WVAIGANINational Upital Dilriet

INDEPENDENT At DIT OPINION

FLEXIBILE & OPEN DISTANCE EDICATION (FOi)E) PROJECT (JiR)/DCREDIT NO: 4853 - PNG) FOR TIIE FISCAL YEAR ENDED 31 DECEMBER 2014.

Scupe of Audit

l hake andited the P'roject Financial Statements oC Receipts and Payments. and theaccompanŽing notes ol 1Flex ible & Open Distance EducatiOn DE)j Project I1l IDACredit No. 4853 - PNG as ai 31 December 2014. The preparation of this Projcct FinancialStatement is the responsibility of the Project Implementation U'nit (PIlU). My responsibillitis to express an opinion on the Financial Statement based on my audit.

1 have conducted ni audit in accordance \\ ith International Standards on Auditing ([SA) asadopted by the Accounting Staridards Board of Papua Newk Guinea and the requirements ofihe Publie Fi nances 1hament Aet. 1995. These standards require that l plan and

pertorm the audit to obtain reasonable assurance w%Ihether the Financial Sateient is frec ofmaterial misstatenent, The audit procedures include examination. on a test basis. ofel idence supporting the amounts and disclosures in Ihe Financial Staiement. My audit alsoincluded assessing the accounting principles applied and significant accounting estiiatesmade by management. as well as evaluating Ilie oxerall statement presentation. 1 believelhat my audit provides a reasonable basis for my opinion.

The polic of the \lanaemi enlt of Project is to prepare the accompany ing project financialstatemenrt in accordance w\ ith International Accounting Standards (LAS) as adopted byACcouting Standards Board of Papua \ex Guinica and the requiremenis of the loanagreement for the Flexible & Open Distance Edcation Project IRD IDA Credii No. 4853- PNG dated 3 1 March. 20 1.

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1i quiaiitfied .\uiit Opinio1n

In my opin he bp"1 lememned Prkie: 1 nancial Itemens 2 e a tre and tar ien nal Imaerral respeetK it thbc inancial positini o the 1 le\ile &, Oper 1)itane Educmioll

(FOD Prolicct 1)RD [D\ (redit \.) 4N53 - P\G as i[ 31 December. 201-1 and the-eceip pa ient and in1estmnernt Onies and the acquisiin and dispwsal aS\ets are iiiaccirdance u ii the IPublie jinamees ( Uan)wwn/) ct1 I>5 (as amended ,

In aditilioun:

(l \\ ih respet t disbursement h the \\ mid Bank paid on the hasiM ,t Certiledtaements e"I I-\renditure t)L), adeilaie supporting dcument \were naintained

tl suppsrt the claims to ie \\i rld Bank tor re imbursemnt ole\penditure incurred1nd th \xpendi1re cerne d are eligible tr ilnancing under tc [IRD ID. \

Credit \o. 4853 - [N(,.

h) I he INRD [D.\ [mpret \ecanit gIm a tie and air \iex of the reeeipts collectedand pay ment' rnade dri ng the Year ended and the statu of t he Imprest \ecount as

at '1 lDecmher 2014.

PHILI1 NAi \\uditor-d ieneral

- ~~%toll CISTt4~

DEPARTMENT OV EDUCATICN

FLEXIBLE OPEN DISTANCE DUCATION PROJECTIDA CREDIT No. 4853-PG

AUDITED FINANCIAL STATEMENTSFOR THE YEAR ENDED31' DECEMBER 2014

DEPARTMENT OF EDUCATION

FLEXIBLE OPEN DISTANCE EDUCATION PROJECTIDA CREDIT No. 4853-PG

AUDITED FINANCIAL STATEMENTSFOR THE YEAR ENDED31' DECEMBER 2014

PAGE CONTENTS

I Director's Statement2 Auditor's Report3 Statement of Income & Expenditure

4 Statement of Financial Position

5 Statement of Cash Flow6 Notes to Accounts

7 Detailed Statement of Income & Expenditure

IDA CREDIT No. 4853-PG

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st DECEMBER 2013

DIRECTORS' STATEMENT

In our opinion the accompanying Financial Statements on Pages 1 to 4 present farly the

state of affairs of the project for the year ended 31st December 2014, and its results

and cashflows for the 12 Months then ended

On behalf of the Project Directors dated at Port Moresby theN .. .. .. Day of ..... 2015

Dr. Willie Clarke-Okah Dernas TongogoProject Management Advisor Project Supervisor

Page 1

PNG FLEXIBLE OPEN DISTANCE EDUCATION PROJECT

STATEMENT OF INCOME AND EXPENDITURE

FOR THE YEAR ENDED 31 DECEMBER 2014

Note 2014 2013

K K

INCOME

DA ,;nds-Woria Bank 3 1971 561 2,126,309

Otner income-GoONG 3 1C2C,000 -

TOTAL INCOME 3,171,561 2,126,309

EXPENDITURE

Updating of Curriculum & Instructional Materials 164,807 473,074

Improving Quality of Service Delivery 786,973 510,642

Grade 11-12 Matriculation program Expansion

Ebstabsh FODEMaraculathon Program (Grade 11- 12;

Improving Information Technology. Monitoring &Evaluation 1,236,313 774,439

TOTAL EXPENDITURE 2,188,093 1,758,154

NET SURPLUS/(DEFICIT) 983,468 368,155

fhis statemen is to be read !n con1ucton vih the notes on 3age 6

Page 3

PNG FLEXIBLE OPEN DISTANCE EDUCATION PROJECT

STATEMENT OF FINANCIAL POSITIONFOR THE YEAR ENDED 31 DECEMBER 2014

K K

Current Assets

.ash 36r Cu<kalents . ___ 78 25236152etly Casn

d'an:s t FOÆEsner . Arlo.rt 3300C

Advance anrd Freoaymrents 17.900 7900

5 :eco.verabe 133.969 90,575

Tz:al Currens ssets 1,408,347 553,090

Non Current Assets

Assers WorEa 3ank .99,450 .. 155

Asse:s Gopng 190,183 -

Total Non,ur uient Assets 389,633 155,155

TOTAL ASSETS 1,797,980 708,245

Current Liabilities

Advance from GoPNG 9 17,495 1,495Other Current 4abilites 9 90,267

107,762 1,495

Long Term Loans

TOTAL LIASILITIES 107,762 1,495

NET ASSETS/(LIABILITIES) 1,690,218 706,750

ACCUMULATED FUND

Accumulated F,rlds - Surplus/(Deficiti B/F ,d 706,750 338,595Surplus/Defici: for 2014 983,468 368,155

1,690,218 706,750

Tmis statement is to be read <n conjuction with the notes on Dage 6

0age

PNG FLEXIBLE OPEN DISTANCE EDUCATION PROJECTSTATEMENT OF CASH FLOW

FOR THE YEAR YEAR ENDED 31 DECEMBER 2014

2014 2013

OPERATING ACTIVITIESRece os froim Oca 'g Act .v174.562 2 12 02Pvyments Ansingc Yon'ceratlVg Ac:.te o, cc 5.550 1,695,939

.106.003 430 380

INVESTING ACTIVITIESIncrease/EdecIrease, .n wor < ng :scw:a -388.000 81642Purcnase of f.xc -tsez s q57.437 20 7657

745 407 126,015FINANCING ACTIVITIES

Barrow ng from ierated Part 'as 16,27 80

106,267 80

NET CASH FLOW/(OUTFLOW) 466.262 304,44S

Cash Balance - bceginning of perid 454,616 150.IllNET NFLOW/(uwr:W 466,86- 304,445

Cash and Cash Equivalents - 31 December 2014 921,478 454,616

This stateiren is to be read in conjicton w.th the notes on Page 6

%g e

FLEXIBLE OPEN DISTANCE EDUCATION PROJECTZA CREDTINo. 4353-PG

'«1E TO0 AND FORMING PARTS 5 THF itNANC SVWFNS

"'PT'E 'EAR EN ti 1 DÉ(A 4 2,14

SUMMRY 0 ACCOUT NG PO! CIE

C omn b,ance

-- .- - - r.

7 PA(IA : UN if''D 'S

r/C o iDA,Wg

GST Rcoverade- 2< "DTAi

- - ; 90.575 42

. 53 .' 48.393-17

L334.47 52 624 72 36.9:9 23 38.96,.59 138.819

5 PROPERTY. PtANT AND -QUIPMENT.. ,T -'Net BoOk Val e

WORL0 BANK.- e::-s - - --. 304.224.34

- - . 3..25,292.91p7 C - 17.584.36

7 - ,3 3 -,4 .873__ i7 .. 19.450.48

99,450.48m ... .. Net BooK Value

GOPNG K

Asx 9-.S 1433L58

3U 7ti." 7 ' ;2,153 00t'N i .. - -i 9.1% 18

190,183.36190.183-36

6 BANK ACCDUNTS

7 Ad-c%i t FODE General cOunt

9 Advances & Prepayment

83

''i900 2 .'. 4 C 1 C

9 PdvancesttomiOthers

LJFOZ5 CO £20613 107'76. 03

PNG FLEXIBLE OPEN DISTANCE EDUCATION PROJECTDETAýLED STATEMENT OF iNCOME AND EXPENDITUREFOR THE YEAR ENDED 31 DECEMBER 2014

2014 2013K K

INCOME/RECEIPTS

TOTAL RECEIPTS 3,171,561.52 2,126,308.93

EXPENOITURE

Updating of Curriculum & Instructional Materials.';meton ot 'annea -005 C;å.z ca'rm 3r :' :j .hade '2 -. -

0re2.ja:n of eache'-

T-2r ,p,c;c. 'rarera.'s & s.3t

-6tà-s'5r'Fnn .d :;; cur,Ci&' L crary 3t -SD'

Dec& .se jt V3i os; cesa :op puvØse ' ec's ''or":;>2

? as'tGnc a åi <stucimn"a: mazen.s

164,806.70 473.073.75

Improving Quality of Service Delivery

_gae :ua7y Rf senwce rnced uy-CDE -:,a 2 -i - 2j7

re and 'rmn ;e,9 . 'oca rrs

n;'ate quaM y o' sen.vce c';o;.Ced at rm;:a c6ntres

pbgrûa 0&aåty of Senéce cro,.ec ar >eçc.'naI $.ay Ce:es

786,973.17 510,641.78

Graae 11-12 Matriculation program Expansion

Sstac,isn 9Cfl Maticjla.pan Oogram .Sra:te i- 1'2

Irnproving Information Technology. Monitor.ng &Evaluation

Nees ident-hcn 2 z ss'tn!maiont Techn;c;cgy .rs'taqat'cn a-;' trarnæg 1

P,!ot and St;ces & FW & ?rcdure,evl cons avfs -f 7Å

Dec;eca(,nEtpenses 14 92,22 95

8r- ;na'qes . C 4 C.37

1,236,313.47 774,438.63

TOTAL EXPENDITURE 2,188,093.34 1,758,154,16

NET SURPLUS/(DEFICIT) 983,468.18 368,154.77