Secr~Lary ,

Minis try of Education, Bangladesh Secretariat, Dhaka-1000.

Audit completion date : 04-12-2014

I. We have audited the accompanying Financial Statement of "Higher Education Quality Enhancement Project (HEQEP)" as of June 30, 2014 and for the year the n ended. The

preparation of financial sta tement is the responsibility of Management. Our responsibil ity

i ~ to expre .., an opinion on the Financial Statement I based on our audit.

!I. We c nducled our audi t followi ng International Standards on Auditing. Those standards

require that we plan and perform the audit to obtain reasonable assurance about whether

the Finan ·wl Statement is free from materia l misstatement. An audit includes examining

on a test hasis evidence supporting the amounts and disclosures in the Financial Statement.

.\n audit also includes asse ing the accounting principles used and significant estimates madt: by lanagement as well as evaluating the overall Financial Statement presentation.

We hdieve that our audit provides a reaso nable basi-. for our opinion.

II I. The n: ults of our audit disclosed the following material aspects which affected the

Fin.mcial S ta tement:

a) Advance am unting Tk.5900793 .00 not adjusted during the year. But the amount was

shown in expenditure in the Financial S tatement (FS). As a result expenditure overstated in

the F.~ D tails are shown in Annexure-"B" Para no-02). IV. In our opinion. t:, cept ac; s tated in the preceding paragraph and non-compliance of finan ·ial

rule and r gulati( ns in sub equent obs rvations along wi th the financial position of management

letter follo\\ ing the Financial Statement giH' a fair view and true in all material aspects, of the

.. Higher Education Quality Enhancement Project (HEQEP)" as at 30 Ju ne, 2014 and the

results of it: operations and cash flows for the year then ended in accordance with the cash basis

of accounting f !lowed by the Government of Bangladesh .

Opinion statu : Qualified.

. ~~~~ (Md.Mamun-Ul-Mannan) f

Depu ty Director For Director General

Foreign Aided Projects Audit Directorate

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Higher Education Quality Enhancement Project Project Financial Statement Financial Year 2013- 2014

Year ended June 30, 2014

Cumulative Current

Taka in Lac

Cumulative Project Resources ~otes

I Prio r Period Period Current Period

Government of Bangladesh

Loan From IDA

Other Resources

Opening Cash Balance

Total Resources

Project Expenses

1 Salary & Allowances

2 Academic Innovati on Fund

3 Consulting Ser\ ices

4 Traini ng , Workshop, Conference

5 Supplies & Services

6 Vehicles

7 Equipment

8 Computer & fT Equipment

9 Computer Softv.are

10 Office Furnitures

11 Office Equipment

12 Constructions

13 Telecommunication

14 Honorari um

Sub Total for Project Expenses

15 In terest Deposit to Bangladesh Bank

16 Revenue deposit to Bangladesh Bank

Total Amount Deposit to Bangladesh Bank

Total Expenditure

Bank Closing Balance

17 COl\iT ASA Ban!-- Account

18 GOB Bank Account

T otal Ban k Closing Balance

T ota l Expend iture and Cash

Md. Nasser Ahm d, :.ccA. Fcw.­Financ.at Managel'"lent Specialist HEQEP. UGC. Dhaka

I 803.99 309.07 1,113 .06

2 59,620.06 12,345.54 71,965.60

3 174.86 212.93 387.79

4 - 20,883.98 -60,598.91 33,749.96 73,464.89

43 2.25 182.70 61 -1. 95

32,1-13.97 I O.fl44.35 42. 1S8.32

1,63 !.-+6 715.39 2,346.85

972.44 216.22 1,188.66

3,309.97 456.98 3,766.95

104.76 36. 86 141.62

58.30 1.98 60.28

844.47 13.61 2.42 14,456.89

0.97 0. 17 1.14

18.3 1 9.06 ':. 7.37

20.59 "' .68 :.s ..... .., ... • ~ 1

2.58 2 1.27 23 .85

31.80 31.80

145.79 145.79

39,540.07 25,482.67 65,022.74 3 169.69 :J::: .49 382. 18

3 5.17 0.44 5.6 1

174.86 2 12.93 387.79

39,714.93 25,695.60 65,41 0.53

4 ~0,874 . 63 8,054.36 8,054.36 4 Q.35 - -

20,883.98 8,054.36 8.054.36

60,598.91 33,749.96 73,464.89

~~ .~:2-b;rB Md. Zaha~dc >...7 I • ~ r Project Director (Additional Secretary )

Higher Educatio n Quality Enhancement Project

GOB Ex pen cs ! for Curren t

Period

182."'0

o.-7

131.5..,

0.06

0.-t:.'

or 0.12

0.0

315.82

I

·,

Higher Education Quality Enhancement Project !'IOT ES TO TH E F I!'IANCIAL ST ATEME~T

301h June, 2014

GOVER!'IMCYf Of' BA~GLADESH .

Fu nd!> are al !o.:ateu b) the g \·crnment of B;mgladesh to cov.:r (J B's share f eligi ble pro iect expenditure, as specified in th,· pr icct pro-forn a anJ in the ,·\ nnual De\-elopm nt ProgrJmme for each year f the proj.:ct. An) allocated funds

th.!t ha\c n(lt !"I c:n t::X r : nJed b) the .:nd of the iiscal )e. r laspe nd must be rcturnd t GOB. OB contribution to the pro jcll since im.epti 11 are as fo lln\' (in lak.h Taka)

Taka in Lakh Inception to For the yea r Incept ion to

30'11 June, 2013 2013-2014 301h June, 2014

Disbursement:. bv GOl3 824.00 1) 13.00 1,737.00 L>~ : Refunds to GOR ,2 0.0 1) (603.93) (623.94 ) Total: 803.99 309.07 1,113.06

Th · lOA has prf• iJeJ . unJs 111 th~ ~ rojcct h. ::o\ er it' ,hare of eligible r •. k ct expenditures. These fun s , which must bt. r ~ r ,t iJ t• ID \ <~ ftcr t•t .. t ndusi n of thc roject, ha ' been Jn, an b; the project in accor ance with the foll0wing \A ithurwa l rr c' CcJurcs ·n lakh TakJ I

laka in Lakh Incept ion to Fo r the year Inception to

30'h Ju ne, 20 13 2013-1 4 301h J une, 2014

lnll tal Dero~•l ' ·\d ance 1 -

DPA ,Dtr.:ct Pa)nt.:nlJ -RPA )()i::. Pro.:Jure ) -RPA \un SOE Procdure . -

IU -\ t fCport lia~~~~~ 59.621J Ob I~ 345.54 7 I,9M.r .t

Uther$ . -

Total 59,620.06 12,345.54 71,964.04

3 OTHlR RESO l RCE. ·. Ott.er'> Rcst•un:cs cons is. 1 t tl e foil •• ' ing:

f aka in I aJ, h ~

Inception to For the year Inception to

301h Ju ne, 2013 20 13-14 301

h J une, 20 14

R<!' cnu.: dept~si t to Ban~ laJcsh Bank 5.17 0.44 5.61

lnterc-.t derosit t0 B., ngJ.,dt:~h Bank J69.bY 2 1 2. ~ 9 382.1/l

ITotoJI: 174.86 2 12.93 387.79

i

LASH: The Projec t maintains two bank account:

pe,; ial \ccounts: 0 'T <.; \ t Sl L) . h)41l()l),.p -) kept in Janata Bank. limi t J . { 'G C. Bh• ban Br· ch, Dhaka to operate fu nd

c\h :JO ' L b . IDA

Orerat~i r'!g :\ cc• ur.t : C ) H I 003 8'J3 k.:pt in J;ma:, Ban!-. Limited, L'G<. Bhc.i' n Bram:h, Dhaka to operate fund of GOB.

t CJ\!T \'>A \ ~ c ,, ,,uts

Uperating .. \._,_, un t t( ,()R

T ota l

Opening Bula nce

30'" June, 2013

2tJ._874 ()1

9.35

20,883.98

T ka in Lakh

Closing Balance

JO'h J une, 201 4

8,054.36

8,054.36

Md. Zahanglr Ala m . ndc P•o1ect Dl1eclor (Aadr al SecfetarvJ 4 n""r. • C A ., _ ... ,... ··

• AUDITOR'S REPORT O N CONTASA ACCOUNT

1. We have audited the CONTASA Account Statement of "Higher Education Quality

Enhancement Project'' for the year ended on 30 June. 2014 fi nanced under

provision of IDA under credit No. 4544-BD.

2. Our audit was carried out in accordance with International Auditing Guideline.

Accordingly, our audit included such review of system of internal control, tests o f

the accounting records and supporting documentations, verification of account

balance and other auditing procedures that we cons idered necessary under the

circumstances.

3. The accompanying CONTASA Account Statement was prepared on the basi of

cash deposits and withdrawals for the purpose of complying with the above credit

covenant.

OPINION

In our opinion. the CONTASA Account S tatemcnt(Annexure·"A'' attach) gives a

true and fair view of th accounting activities for the year ended 301h June. 20 14 on

the basis of cash deposits and withdrawal .

(Md.Mamun-ll·.\-lannan) Depu ty Director

For Director General

r I

F reign Aided Project Audit Directorate

1

2 -3

4

5

6

7

8

1

2 3

4

5

6

7

8

9

Higher Education Quality Enhancement Project For the year ended June 30, 2014

Financial Year 2013-2014 CONTASA Account Statement (IDA

Depository Bank

Address

Loan I Credit Agreement

Currency

Part A: Account Activity

CONTASA Begining Balance as on July 1, 2013 (note-3) Add: Total Amount Deposited by World Bank till June 30. 2014 (note -1)

Total amount refunded to cover eligible expenditure

Deduct: Total amount withdrawn

Total service Charges if not included above in amount withdrawn

CONTASA Ending Balance as on June 30, 2014 (note-3)

Part B:Account Reconciliation:

June 30, 2014

STD-0040004 7 5

Janata Bank Limited

UGC Bhaban Branch, Agargaon, Dhaka

45440-BD & 53320-BD

BOT

Amount in BOT

2,087,462,982.03

7, 137,1 86,758.31

9,224,649, 7 40.34

8,419,21 3,282.33

-805,436,458.01

Amount advanced by World Bank from inception to June 30, 2014 (note-1) 7 137.186,758.31

Less: Total amcunt recovered I docume'lted by World Bank 5, 11 3,1 65,507.77

till June 30, 2014 (note- 2)

Presert Outstanding amoun advancec to the special account for FY ended 2,024,021,250 54 June 30, 2014

CONTASA Ending Balance ended June 30 2014 (note- 3; 805,436,458.01

Plus: amount cla imed and yet credited at FY ended June, 2014 -Application No. I I I Amount

Plus: amount withdrawn and yet claimed

Less: 1nterest earning (if included in CONT ASA amount}

Plus: Services Charaes (if r ot included in lides 5 & 6 above) Total advances to special account for FY ended June 30, 2014

1,218,584,792.53

--

2,024,021 ,250.54

,-- ~ ~ ;) C-' ,If/?! Z)? :2111- ~~ \ ~ \ ft

Md. Nasser Ahmed, FCMA Financial Management Specialist HEQEP 1

Higher Education Quality Enhancement Project For the year ended June 30, 2014

Fi nancial Year 201 3- 2014 CONTASA Account Statement (IDA)

Note: 1 Amount i:-1 SOT

Cumulative advances from tnceptior to ...1p until Marcn 12. 2014 6,053,186,758.31 Add: Advance received on June 2S , 2014 for additional financing 1 084,000,000 .00

Total amount deposited I advanced by world bank 7,137,186,758.31

Note: 2

Expenditu·e docurTented bf HEQEP unti \ March 3' 20 1~ 3 5J1,1 64 ,S51.45 Add· Expenditure to be documented from April to June 30 2014

1 jfor old financing I lean number 45440- 8 0 1,591,324,095.32

2 !for r.ew financing I loan number 53320 - 8 0 20 676,461.00 Total amount recovered I documented by World Baf'k 5,113,'1 65,507.77

Note: 3

Regar ing CO TP..SA ceginning and er d1 g ban K balance a o .... t rease ~; e r fy ,,., . h tank :-:'c rma:ior

.. AUDIT OPINION ON SOE

We have audited the Statement of Expenditure (SOE) of the "Higher Education

Quality Enhancement Project" fo r the year than ended 30th June 2014 submitted to the

World Bank for reimbursement of expendi ture in accordance with the IDA credit

agreement.

The audi t was conducted follow ing International Stand rd on Auditing.

Ac ·ordingly. it included such tests of the accounting and supporting documents, review of

:ystt.:m of intt: rnal controL ~o fa r exists. and adopting necessary auditing procedures that

we considered essential under the circumstances.

WITHDRAWAL/SOE PARTICUlARS

Withdrawal application /SOE. The Project authori ty claimed Tk.1637252881.70

for reimburse but the Donor disbursed an amount of Tk.1234554150.00 which was cl im

submitted \\ ith previous year. A" such less di bursed Tk.402698731. 70 (Tk.

lo37252RR 1.70 - Tl-.. 1234:541 50.00). Details are shown in Annexure- '"B"

OPINION

In our opinion, World Bank could rely upon the Statement of Expenditure (SOE),

c.\cept a discussed in the oh~crvation · is~ued under section-II of this report, to support the

applications for redit disburc;ement for expendi ture incurred for the purpose of the Project

specified in the particulars o withdrawal applications. .~

~~ _.) ·;, I · I ~ [ <-t

(Md.Mamun-Ul-Mannan) j Deputy Director

For Director Ge neral Foreign Aided Projects Audit Directorate

WAno

WA-17

WA-19

WA-18

WA-001 (AF)

~

HEQEP

SUMMARY OF WITHDRAWAL APPLICATIONS

For the year 2013-14

Date Amount Cla imed Amount Received Different

21/ 01/2014 150,554,150.00 150,554,150.00 -18/06/ 2014 308,716,000.00 - '3 o<J _j-r (.,Q.QQJ

11/ 5/ 2014 93,982,731.70 -4/6/2014 1,084,000,000.00 1,084,000,000.00 1'' ,fJPjJ.? f .. }r

I - '\

1,637,252,881.70 1,234,554,150.00 -4U).6'2.&1_.·31 .. j

-~~~ ... ~ ,I

\ ")'!"" ·....,nl -; ~ ~·J '. ,, .

"~'

.. , '

Remarks I

I

Ap-June2011 ! I

,net-dec 2013 I

jan-March 2014 I

I

Addl finance

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