~oM OE AUDITOR GENERAL'S DEPARTV ENT P.O. BOX 455 KiNGSTON 5 JAMAICA Email: audgen@auditorgeneral.gc vJm INDEPENDENT AUDITOR'S REPORT Mrs. Karlene Deslandes Executive Director Early Childhood Commission Shops 45-49 Kingston Mall 8-10 Ocean Boulevard Kingston Opinion I have audited the accompanying Financial Statements of the Early Childhood Commission, se out on pages 1 to 18, which comprise the Statement of Financial Position as at March 31, 2017, Statement of Financial Performance, Statement of Changes in Equity and Statement of Cash flows for the year then ended, and a summary of significant accounting policies and other explanatory notes. In my opinion, except for the matter noted below, the Financial Statements give a true and fai view of the financial position of the Early Childhood Commission as at March 31, 2017, and o its financial performance, and its cash flows for the year then ended in accordance wit International Public Sector Accounting Standards (IPSAS). Basis for Opinion The audit was conducted in accordance with International Standards of Supreme Audi Institutions (ISSAls). My responsibilities under those standards are further described in thl Auditor's Responsibilities forthe Audit of the Financial Statements section of this report. My sta and I are independent of the Agency in accordance with the International Ethics Standard Board for Accountants Code of Ethics for Professional Accountants (IESBA Code) and we hav fulfilled our other ethical responsibilities in accordance with the IESBA Code. I believe that thE audit evidence we obtained is sufficient and appropriate to provide a basis for my opinion. Key Audit Matters Key audit matters are those matters that, in our professional judgment, were of most significancA in the audit of the financial statements of the current period. These matters were addressed if the context of the audit of the financial statements as a whole, and in forming my opinion thereon and I do not provide a separate opinion on these matters. The following key matters were brought to the attention of management by way of our Audit Completion Report datec September 28, 2017. Employee attrition rate at the Commission 1) We noted that (16) sixteen employees separated from the Commission, during the period compared to eleven in the previous year. The loss of twenty-seven staff members from various categories in two years is unusual and may affect the overall performance of the Commission, especially if the areas affected are critical to the mandate of the organization. We advised management to take appropriate steps to determine the reasons for separation and put measures in place to improve staff retention. Management of Accounts Receivables - Overpayment to Early Childhood Practitioners 2) Practitioners that separated from Early Childhood Institutions were overpaid subsidies of $2.1 million because the Early Childhood Commission was not notified in a timely manner by those institutions. The overpayment of early childhood practitioners has been recurring for several years and although overpayments in the 2016/2017 was $2.1 million, the collection of $26.1 million relating to prior periods continue to prove difficult. The loss of public funds becomes imminent with the passage of time. Management advised that an arrangement was made with the Ministry of Education to recover the amounts from practitioners who are still employed in the public service. However, we have not been able to determine the results of this arrangement. Unidentified Deposits 3) The financial statements disclosed unidentified deposits of approximately $15 million. However, the Commission did not provide pertinent documentation from the bank to identify which practitioner the sums related. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these Financial Statements in accordance with International Public Sector Accounting Standards (IPSAS). This responsibility includes: designing, implementing and maintaining internal controls relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances. In preparing the financial statements, management is responsible for assessing the Agency's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless there are plans to liquidate the Agency or to cease operations, or has no realistic alternative but to do so. Auditor's Responsibility for the audit of the Financial Statements My responsibility is to express an opinion on these Financial Statements based on my audit. I conducted my audit in accordance with the auditing standards issued by the International Organization of Supreme Audit Institutions (INTOSAI). Those standards require that I comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISSAls will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. As part of an audit in accordance with ISSAls, I exercise professional judgment and maintain professional skepticism throughout the audit. I also: * Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. * Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Agency's internal control. * Evaluate the appropriateness of accounting policies used and the reasonableness Of accounting estimates and related disclosures made by management. * Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Agency's ability to continue as a going concern. If I conclude that a material uncertainty exists, I am required to draw attention in my auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify my opinion. The conclusions are based on the audit evidence obtained up to the date of my auditor's report. However, future events Or conditions may cause the Agency to cease to continue as a going concern. * Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that presents a true and fair view. I have communicated with the Board of Directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficienciP1 in internal control that was identified during the audit. Report on Additional Requirements of the Early Childhood Act 2005 I have obtained all the information and explanations which, to the best of our knowledge and belief, were necessary for the purpose of the audit. In my opinion, proper accounting records have been maintained and the Financial Statements are in agreement therewith and give the information required in the manner so required. Auditor General of Jamaica Date l 1 I THE EARLY CHILDHOOD COMMISSION Statement of Financial Position as at March 31, 2017 Note 2017 Z0:6 Property, plant and equipment 5 35,025,275 , 59,762 Current assets Receivables and advances 6 59,501,144 27, 03,385 Cash and cash equivalents 7 168,501,993 3C6, 73,543 Total current assets 228,003,137 34,76,928 Current liabilities Accounts payable and accruals 8 174,258,332 2 , 38,798 JECD Project Funds 9 1,500,060 4, L75,056 Total current liabilities 175,758,392 220, 13,854 Net current assets 52,244,745 12,763,074 NET ASSETS 87,270,020 li , 22836 FINANCED BY: Retained earnings 80,366,268 1 , 46,384 Donated assets reserve 10 6,903,752 1 76,452 87,270,020 1,32283 The financial statements on pages 1 to 18 were approved by the Commission on Se tember 26, 2017 and signed on its behalf by: Chairman -Early Childhood Commission Mrs. Trisha-Williams-Singh Executive Director Mrs. Karlene Degrasse-Deslandes The accompanying notes on pages 5 to 18 form an integral part of these financial statements ………：Fr：■r：…：&::：…스그쵸｀& THE EARLY CHILDHOOD COMMISSION Statement of Financial Performance as at March 31, 2017 Note 2017 2016 $ $ REVENUE: Subvention 1,827,091,693 1,855,699,1,, Grants 4,491,004 Resources for JECD Project 10,726,120 7,467,6 Other income 2,346,017 479,45J 11 1,844,654PS3 1,863,646, 2.. EXPENDITURE Staff costs 12 316,461,932 3073697,43 Premises related expenses 12,900,069 11,712,51'31: Utilities 7,512,363 7,848, 11 Goods and services, and other costs 30,290,491 22,848, 1. 0 Subsidy expenses 1,505,519,343 1,508,007,131 JECD Project Technical Assistance 10,726,120 7,467,( a) Depreciation 11,297,33 13,016,0. TOTAL EXPENSES 1,894,707,65 1,878,597,46.P Net profit/ (loss) from operations ECC before transfers (50,052,8161 (14,951,21() Transfer from capital reserve of amount equal to depreciation charge on donated assets 6,072,700 8,493,- Total comprehensive profit (43,980,116) The accompanying notes on pages 5 to 18form an integral part of these financial statements 1. i: 1~ THE EARLY CHILDHOOD COMMISSION Statement of Cash Flows as at March 31, 2017 2017 CASH FLOWS FROM OPERATING ACTIVITIES Net profit from operations (43,980,116) (6 57,316) Adjustment for: Transfers from donated assets reserve (6,072,700) (8 93,903) Depreciation 11,297,332 1 16,346 (38,755,484) (1 934,873) Decrease/(Increase) in Current Assets: Accounts receivable and advances (22,197,759) (12 59,261) (Decrease)/Increase in Current Liabilities Accounts payable and accruals (61,480,466) 11 969,982 Early Childhood Development project funds (2,674,996) 170,268 Net cash (used in)/provided by operating activities (125,108,705) 10 p546,116 CASH FLOWS FROM INVESTING ACTIVITIES Additions to property, plant and equipment (12,762,845) (131 45,731 CASH FLOWS FROM FINANCING ACTIVITIES Donated assets received Net increase in cash and cash equivalents (137,871,550) 9 00,385 Cash and cash equivalents at beginning of year 306,373,543 2 73,158 CASH AND CASH EQUIVALENTS AT END OF YEAR 168,501,993 30 1373,543 The accompanying notes on pages 5 to 18 form an integral port of these financial statements r－一”州－州－界甲甲州－州一才豐，鬥一－---－勿－一－--－鬥－豐州一－--－豐斤一一鬥一－-－勿n州，州－-－州斤，弋一鬥－州－-－勿『州州－州－－兀－豐斤一一鬥州一－-－兀界一州－州－－兀－州斤，弋一－州，州－-－勿尸州－州一才州斤，弋－---－鬥－州一－-－勿『州州，戶州－－兀－州，鬥，弋一－州，州－-－勿尸州一－－兀－豐斤，弋一－－州－-－勿n州一－－兀－州，鬥，弋－---－鬥鬥 ■．’■，■細d們鬥’&,－劊‘■細勿神■網■”■妒■戶‘,，■ THE EARLY CHILDHOOD COMMISSION Statement of Changes in Equity as at March 31, 2017 Donated General Assets Reserve Reserve JOTAL $ $ Balances at March 31, 2015 130,803,700 21,470,355 152 4,055 Net income (14,951,219) - (14,051,219) Donated assets reserve - Donated assets amortization transfer 8,493,903 (8,493,903) Balances at March 31, 2016 124,346,384 12,9 137',1 2,836 Balances at April 1, 2016 124,346,384 12,976,452 131'322,836 Net income (50,052,816) - (50jC,12,816) Donated assets reserve Donated asset amortization transfer 6,072,700 (6,072,7001 Balances at March 31, 2017 80,366,268 6,903,752 8 7, 2 0,020 The accompanying notes on pages 5 to 18 form an integral part of these financial statements ,－一州州－去－一尸州，州－-－州斤一一－－州一尸州一－-－州斤一一－州，州一尸州，州－-－州斤一一鬥－州一尸州一－-－州斤一一－一一尸州，州－-－州斤一一－州，州一尸州一－-－州斤一一－－州－-－勿n州，戶州－－兀－州斤一一鬥州，州－-－勿尸州一一一一－州，州一一州，戶州一－豐一一－州，州一尸州－州一一尸一－州，州一一州－州一，鬥一一－→州一一州，戶州一州尸－－一－州，州－----－鬥州－ ■■■”畸■細■■細‘由叫戶“由自由■■，，門甲州戶鰍網甲，甲”■細由甲門畸■甲，■戶■州h妒■呵■斤角由甲‘甲，■網甲戶‘州綱甲，妒網呵■甲■由卹向■■，甲”州綱■州呵甲甲，甲■‘由 THE EARLY CHILDHOOD COMMISSION Notes to the financial statements For the year ended March 31, 2017 1. The Commission The Early Childhood Commission (The Commission) is a statutory not-fbr-p 06t organization established under the Early Childhood Commission Act 2003 1 Act). The Act established a Commission to govern the administration of early childh ?61 care, education and development in Jamaica and to make provision for connec 'i matters. Its main functions are to: " Advise the Minister on policy matters relating to early childhood c education and development in Jamaica. " Assist in the preparation of plans and programmes concerning t-lv childhood development. " Act as a coordinating agency to ensure effective streamlining of activities relating to early childhood development. " Supervise and regulate early childhood institutions. The Commission commenced operations in October 2003. A Board;, d Commissioners, presently consisting of -twenty members, governs t Commission. The operational arm is managed by an Executive Director. Pri August 2004, all financial functions for the Conu-nission were administere the Ministry of Education. The main source of finance for the Commission is grants received from tu! Ministry of Education. 2. Statement of complignce, basis of preparation and siggificant accoukill policies a) Statement of compliance and basis of preparation The financial statements have been prepared in accordance with Intern I Public Sector Accounting Standards (IPSAS) and their interpre as adopted by the Commission. IPSASs are developed and issued by t -1 International Public Sector Accounting Standards Board (IPSASB). r. 11' t IPSASB is an independent board of the International Federation!- df Accountants (IFAC). IPSASs are based on International Financial Repor Standards (IFRSs). 二－一州州－州－一『州州，戶州一一一－州，州一尸州，州一，一一－→州一‘州州，戶州－一州尸一鬥州，州一『州州，戶州一－豐一一鬥州，州一『州州，戶州－-－州斤一一－→州一尸－州－-－州，鬥一一－州，州一尸州一一，鬥一一鬥－州一『州州，州一，一一鬥州，州一尸州一－－鬥一一鬥州，州一『州州，了州一，鬥一一－州，州一尸州，戶州一，一一－－州一尸－州一，一，鬥一－一－－州一－一 ■■■’齣自”甲細•’憚目■州州 THE EARLY CHILDHOOD COMMISSION Notes to the financial statements For the year ended March 31, 2017 2. Statement of compliance, basis of preparation and significant accountiNt policies (cont'dj The preparation of the financial statements to conform to IPSAS requ management to make estimates and assumptions that affect the repo P?d j amounts of assets and liabilities, contingent assets and contingent liabili it A at the balance sheet date and the revenue and expenses during the repor 4 n, period. Actual results could differ from those estimates. The estimates I i the underlying assumptions are reviewed on an ongoing basis. Revision,6 bb accounting estimates are recognized in the period in which the estima ; is revised and in future periods, where applicable. The financial statements are presented in Jamaica dollars and are prep on the historical cost basis. b) Cash and cash equivalents Cash and cash equivalents comprise cash and bank balances. c) Accounts receivable Accounts receivable are stated at amortised cost less impairment losses. d) Accounts payable Accounts payable are stated at amortised cost. e) Provisions A provision is recognized in the balance sheet when the Commission h4o a legal or constructive obligation as a result of past event, and it is prob that an outflow of economic benefits will be required to settle the obligatfW. If the effect is material, provisions are determined by discounting the expe t I future cash flows at a pre-tax rate that reflects current market assessm k S of the time value of money and, where appropriate, the risks specific to It liability. Property, plant and equipment, and intangible assets i. Owned assets Items of property, plant and equipment are stated at cost or valuation, le 0 S accumulated depreciation and impairment losses.  THE EARLY CHILDHOOD COMMISSION Notes to the financial statements For the year ended March 31, 2017 2. Statement of compliance, basis of preparation and significant account policies (cont'dI i. Owned assets cont'd Cost includes expenditures that are directly attributable to the acquisi of the asset. The cost of self-constructed assets includes the cos materials and direct labour, and any costs of dismantling and remo the items and restoring the site on which they are located. The cos f replacing part of an item of property, plant and equipment is recogn, in the carrying amount of the item if it is probable that the future econo ip benefits embodied within the part will flow to the Commission and its can be measure reliably. The costs of day-to-day servicing of property, plant and equipment recognized in the statement of comprehensive income. ii. Property, plant and equipment are depreciated on the straight-line b at annual rates estimated to write off the assets over their expected us' I lives. The depreciation rates are as follows: Motor vehicles 20% Office furniture and equipment 10% & 20% Computer equipment and software 20% g) Capital grants Capital grants received in cash, and property, plant and equipment rece as gifts are credited to capital reserves. Property, plant and equipm t received as gifts are accounted for at cost. An amount equivalent to depreciation charged for the financial year on such property, plant equipment, and on those acquired out of capital grants, is transferred fX capital reserve. h) Impairment The carrying amounts of the Commission's assets are reviewed at balance sheet date to determine whether there is any indicatio f impairment. If any such indication exists, the asset's recoverable amoun It estimated at each balance sheet date. An impairment loss is recogn. whenever the carrying amount of an asset or its cash-generating unit exce its recoverable amount. Impairment losses are recognized in the statemer t f comprehensive income. 二江亡亡亡二亡莖望亡亡亡二二莖望亡亡亡二二莖望亡亡亡二亡莖莖亡亡亡二二莖望亡亡亡二二莖望亡亡亡二二莖望亡亡亡二二莖望莖亡亡二二莖望亡亡亡二二莖望亡亡亡二二莖望亡亡亡二二莖莖亡亡亡 THE EARLY CHILDHOOD COMMISSION Notes to the financial statements For the year ended March 31, 2017 2. Statement of compliance, basis of preparation and siggificant accounda 4 policies (cont'd) h) Impairment contd i. Calculation of recoverable amounts The recoverable amount of the Commission's receivables is calculated K3 the present value of expected future cash flows, discounted at QP original effective interest rate inherent in the asset. The recovera ,, amount of other assets is the greater of their net selling price and wlpb in use. In assessing value in use, the estimated future cash flows ae'n6 discounted to their present value using a discount rate that reflect5 current market assessments of the time value of money and the r. specific to the asset. For an asset that does not generate indepen(e cash inflows, the recoverable amount is determined for the c ful- generating unit to which the asset belongs. ii. Reversal of impairment An impairment loss in respect of receivables is reversed if the subscqup fl t increase in recoverable amount can be related objectively to an eldit occurring after the impairment loss was recognized. An impairmentli *9 is reversed if there has been a change in the estimate used to deterrxdll the recoverable amount. il Related Parties A party is related to the Commission if. i. directly or indirectly, the party: " controls, is controlled by, or is under common control with di, Commission; " has an interest in the Commission that gives it signifi(oot influence over the Commission; or " has joint control over the Commission.  THE EARLY CHILDHOOD COMMISSION Notes to the financial statements For the year ended March 31, 2017 2. Statement of compliance, basis of preparation and significant account policies (cont'd) ii. The party is a member of the key management personnel of Commission. Such personnel are persons having authority 18 1 responsibilities for planning directing and controlling the activitic iii. of the Commission, whether directly or indirectly and whet through an executive or non-executive role. iv. The party is a close member of the family of any individual refeite in (i) or (ii) above. v. The party is a post-employment benefit plan for the benefif employees of the Commission, or any entity that is a related part df the Commission. The Commission has a related party relationship with the Goverrnmen f Jamaica and its agencies, Commissioners, directors and key managerr it personnel. j) Grants Monetary grants are accounted for on a cash basis. Grants in kind 8 accounted for when the services or assets are received by the Commissioa. k) Financial instruments A financial instrument is any contract that gives rise to both a financial a, t of one enterprise and a financial liability or equity instrument of anotoc enterprise. For the purpose of these financial statements, financial assets have been determined to include cash and cash equivalents, accor ir# receivable and advances and securities purchased under resale agreement Similarly, financial liabilities include accounts payable. 1) Fair value disclosures Fair value amounts represent estimates of the arm's length consideration I would be currently agreed between knowledgeable, willing parties who Pr under no compulsion to act and is best evidenced by a quoted market pd<( , if one exists, Some financial instruments lack an available trading mark These instruments are valued using present value or other valuali1 techniques and the fair value shown may not necessarily be 二二亡二二亡二亡亡亡亡莖亡亡二二二二二亡二二亡亡亡亡二莖亡亡亡亡亡亡莖二亡亡亡莖亡亡亡莖亡二亡亡莖亡亡亡亡亡莖二亡亡二亡亡亡亡莖亡望亡二亡亡亡二二亡莖二亡亡亡莖亡亡二二 THE EARLY CHILDHOOD COMMISSION Notes to the financial statements For the year ended March 31, 2017 2. Statement of compliance, basis of preparation and s!gnificant accounti'lit policies (cont'di Indicative of the amounts realizable in an immediate settlement of tak instruments m) Securities purchased under resale agreements: Securities purchased under resale agreements ("reverse repos") are sh fl- term transactions whereby an entity buys securities and simultane '41' agrees to resell the securities on a specified date and at a specified price. 'p, to the security is not actually transferred unless the counter-party faili b) comply with the terms of the contract. m) Securities purchased under resale agreements: Reverse repos are accounted for as short-term collateralized lend classified as loans and receivables and measured at amortized cost. The difference between the sale and repurchase considerations is recogni#u on an accrual basis over the period of the transaction and is include i interest income. 3. Financial Risk Management The Commission has exposure to credit risk, liquidity risk and market risk fix, r' I its use of financial instruments. This note presents information about Commission's exposure to each of the above risk, the Commission's objectWed, policies and processes for measuring and managing risk. Further quantit A, V disclosures are included through these firiancial statements. The Board of Directors has overall responsibility for the establishment -iii oversight of the Commission's risk management framework. The Cornmissf*il through its training and management standards and procedures, aims to dev p a disciplined and constructive control environment in which all emplo3 09 understand their roles and obligations. i. Creditrisk Credit risk is the risk of financial loss to the Commission if a custome or counterparty to a financial instrument fails to meet its contracft 41 obligations, and arises principally from the Commission's other receivab] 0 5 and cash and cash equivalents. s THE EARLY CHILDHOOD COMMISSION Notes to the financial statements For the year ended March 31, 2017 3. Financial Risk Management cont'd Cash and cash equivalents These are placed with substantial financial institutions for short-ttyx periods and management believes these institutions have minimal risl f default. Exposure to credit risk The carrying amount of financial assets represents the maximum crid. exposure. There is no off balance sheet exposure to credit risk. T maximum exposure to credit risk at the reporting date was: 2017 2016 $ $ Cash and cash equivalents 168,501,993 306,373,5 Accounts receivable and advances 59,501,144 37,303,3 228,003,137 343,676,9 ? i. Liquidity risk Liquidity risk is the risk that the Commission will not be able to meet financial obligations as they fall due. The Commission's approach managing liquidity is to ensure, as far as possible, that it always s sufficient liquid assets to meet its liabilities when due, under both nor and stressed conditions, without incurring unacceptable losses or ris1 damage to the Commission's reputation. The Commission manages this risk by maintaining an adequate levf f liquid funds and relies on the Government of Jamaica for finan I support, if needed. -a THE EARLY CHILDHOOD COMMISSION Notes to the financial statements For the year ended March 31, 2017 3. Financial Risk Management cont'd The following table presents the undiscounted contractual cash flows of finan 1 liabilities, including interest payments, on the basis of their earliest possible contrac 1 maturity, compared to carrying amounts. 2017 Carrying amount Contractual cash Due within flows 3 months Financial Liabilities Accounts payable and accruals 175,758,392 175,758,392 175,758,39 2016 Carrying amount Contractual cash Due within flows 3 months Financial Liabilities Accounts payable and accruals 239,913,854 239,913,854 239,913,85 i. Market risk Market risk is the risk that changes in market prices, such as for i i exchange and interest rates, will affect the Commission's income or value of its holding of financial instruments. The objective is to mana market risk exposures within acceptable parameters while optimizing returns. a) Foreign currency risk The Commission incurs foreign currency risk on transactions that' denominated in a currency other than the Jamaican Dollar. At p end, there was no material exposure to foreign currency risk. b) Interest rate risk Interest rate risk is the risk that the value of a financial instrument fluctuate due to changes in market interest rates. The Commission does not account for any fixed rate financial assetI liabilities at fair value. Therefore a change in interest rates at reporting date would not affect the reported results or equity.  THE EARLY CHILDHOOD COMMISSION Notes to the financial statements For the year ended March 31, 2017 3. Financial Risk Management cont'd iv. Fair values The fair values of financial assets and liabilities are broadly equivalen the carrying amount shown in the balance sheet. 4. Taxation Under Section 14 of the Early Childhood Commission Act 2003, the Commis is not subject to income tax. 5. Property, Plant and Equipment Computers, Office Furniture, Motor Equipment Fixtures & Small Vehicles & Software Equipment TO'I L Cost $ $ $ April 1, 2016 2,157,025 73,506,272 27,538,569 103,2Q 866 Additions 5,500,000 5,830,780 1,432,065 12,76 ,45 Disposals (2,157,025) - - (2,15, 2s) March 31, 2017 5,500,000 79,337,052 28,970,634 113,8 '686 Depreciation April 1, 2016 2,157,024 54,440,416 13,044,664 69,6- .04 Disposal (2,157,025) - - (2,15 25) Depreciation charges 1 8,625,357 2,671,974 11,2 32 March 31, 2017 0 63,065,773 15,716,638 78,70 .11 NEV - March 31, 2016 - 19,065,856 14,493,906 33,5 ,762 NBV - March 31, 2017 5,500,000 16,271,279 13,253,996 35,0 S,75  THE EARLY CHILDHOOD COMMISSION Notes to the financial statements For the year ended March 31, 2017 6. Accounts Receivable and Prepayments 2017 2016 Accounts receivable 28,097,648 28,619,457 Prepayments 3,181,006 2,134,174 Advances 28,222,490 6,549,754 59,501,144 37,303,385 7. Cash and Cash Equivalents This represents the balances of funds managed by The Commission breakou below: 2017 2016 NCB#0610291769 (Subvention) 19,156,560 13,959,/e NCB#06102968 (Donor Fund) 144,265 5,965,( NCB#061037632 (UNICEF) 1,911,831 1,911,E NCB#061043098 (Conference) 12,568,120 1,262, NCB#061047670 (BVL) 428,984 429,,9 NCB#061057064 (Salaries) 15,342,147 7,449,C 4 NCB#061054340 (National Reg.) 1,361,332 1,166, . NCB#061060200 (Canadian Fund) 408,901 635,C I NCB#061082298 (Basic School) 125,679,793 269,419, BOJ#810088 (JECD Project) (Note 9) 1,500,060 4,175,C 168,501,993 306,373, S. Accounts Payable and Accruals 2017 2016 Trade payables 5,819,692 5,318,380 Accruals 147,528,386 204,687,387 Statutory 11,206 8,195,310 Other payables 20,899,048 17,537,721 174,258,332 235,738,798 I; 1 -a THE EARLY CHILDHOOD COMMISSION Notes to the financial statements For the year ended March 31, 2017 9. JECD Project The Early Childhood Development Project is financed by a loan from the W1 Bank of US$12,000,000 and is being implemented by the Commission with assistance of other stakeholders. The Project consists of two compone, namely: a) Component 1 - Sector Wide Approach will co-finance the implementat of the National Strategic Plan. Component I is valued at US$ 11,000,C b) Component 2 - will consist of technical assistance and will fin consultant services procured and managed by the Commiss: Component two is valued at US$970,000. The funds reflected on these financial statement relates to Component 2 , represents amounts held on the Designated Account at the Bank of Jamaic lge the activities of the Project to be undertaken. At the March 31, 2017, the balan on the Special Account was $1,500,060 (US$11,257.20) 10. Donated Assets Reserve These assets were donated by the Ministry of Education, UNICEF and World Bank (IBRD Loan) for use by the Commission. 11. Revenue 2017 2016 $ $ Subvention (i) 1,827,091,693 1,855,699,113 JECD Project - World Bank (ii) 10,726,120 7,467,680 Funds Received- CHASE (iii) 4,491,004 - Other Contributions (iv) 2,346,017 479,450 1,844,654,834 1,863,646,243  THE EARLY CHILDHOOD COMMISSION Notes to the financial statements For the year ended March 31, 2017 11. Revenue cont'd (i) The revenue grants represents budgetary draw down received from El Ministry of Education and Government of Jamaica, to cover operati( expenses for the Commission and Early Childhood Institutions. (ii) This represents cash resources utilized for JECD project activities under t World Bank IBRD Loan No. 8334. (iii) CHASE funds received during the FY 2016-2017 were used to fina Curriculum Training project and the ECC's Organization Rev. consultancy. (iv) Donations received from NGOs to support ECC's Certification Fair and EC[)s Registration fees. s THE EARLY CHILDHOOD COMMISSION Notes to the financial statements For the year ended March 31, 2017 12. Staff Costs Staff costs incurred during the year is as follows: 2017 2016 4 $ Compensation of staff 222,096,782 217,543,993 Other retirement benefits 5,092,819 9,853,504 Clothing allowance 57,380 36,000 Staff welfare 656,879 138,888 Travel and subsistence 88,558,072 80,125,046 316,461,932 307,697,431 Executive Salaries Travelling 2017 2016 Salary Allowance Total Total Executive Director 4,216,290 1,341,624 5,557,914 5,316,141 Director of Cross Sectoral 2,792,531 1,341,624 4,134,155 3,800,210 Director of Sector Support 3,082,431 1,341,624 4,424,055 4,212,308 Director of Regulation &Monitoring 2,675,736 707,448 3,383,184 3,181,890 Director of Finance 2,371,748 707,448 3,079,196 2,782,656 ! У i г THE EARLY CHILDHOOD COMMISSION Notes to the financial statements For the year ended March 31, 2017 12 Staff Costs conVd Emoluments to Staff 2017 2016 Sal= Earnings over $2.5M including Trayglling Salary ranges: $5,250,000 and above 1 0 $4,250,000 - $5,249,999 1 1 $4,000,000 - $4,249,999 1 1 $3,750,000 - $3,999,999 0 1 $3,500,000 - $3,749,999 0 0 $3,250,000 - $3,499,999 5 1 $3,000,000 - $3,249,999 1 2 $2,750,000 - $2,999,999 6 3 $2,500,000 - $2,749,999 7 10 22 19 s