PEF Annual Report 2012 - Punjab Education Foundation

Punjab 

2012 

Education Foundation 

ANNUAL REPORT

Punjab Education Foundation 

PROMOTING QUALITY EDUCATION 

THROUGH PUBLIC PRIVATE PARTNERSHIP


Contents 

Chairman’s Message 5 

Managing Director’s Message 6 

Introduction 7 

Mission Statement 7 

Objectives 8 

Governance Structure 9 

Board of Directors 10 

Board of Directors Committees 11 

Executive Management 12 

Offices 12 

Audit and Advisory 13 

Initiatives at a Glance 14 

Outreach of PEF Programs 15 

Year at a Glance 16 

PEF Programs 17 

Foundation Assisted Schools 17 

New School Program 22 

Education Voucher Scheme 24 

Continuous Professional Development Program 28 

Academic Development Unit 31 

Financials 32 

Audit Report 38 

Balance Sheet 40 

Income & Expenditures Account 41 

Statement of Comprehensive Income 42 

Statement of Cash Flows 43 

Statement of Changes in Fund Balances 44 

Notes to the Financial Statements 45


Chairman’s Message 

It gives me immense pleasure to record my appreciation 

for the staff of Punjab Education Foundation (PEF) who is 

working hard to promote quality education in the 

remote and less developed areas with dedication & zeal. 

The efforts of (PEF) staff are especially praise worthy as 

they have enabled poor families to send their children to 

schools. And I believe that this is the most important 

revolution silently glittering our surroundings. 

The role of PEF is multifarious; it provides free education 

to the less privileged segments, arranges quality 

trainings for the teachers and school Administrators 

besides providing educational vouchers to child laborers 

and out of school children, who otherwise, have no other 

opportunity to attain education the fundamental right of 

every child. 

I believe the provision of free education is the most 

important right of every child and Government of Punjab 

is committed to fulfill its obligation of providing free 

education to the children at their doorsteps. PEF efforts 

are helping to build sustainable partnerships with 

individuals and communities at large for optimum 

results. 

I hope the PEF official website will help to foster public 

understanding of our initiatives for strengthening 

Quality Education among the indigent strata. This would 

also help to boost public awareness about our programs. 

I would also like to take this opportunity to thank 

Government of the Punjab for its continuous guidance 

and steadfast support in supporting the efforts of PEF. 

We'll continue to seek out more opportunities that can 

make Pakistan a worth living place by utilizing on 

resources to support this noble cause. 

I believe together we can make Pakistan the land of 

opportunities for which our forefathers sacrificed their 

lives in 1947. 

Long live Pakistan 

Raja Muhammad Anwar 

5


Managing Director’s Message 

PEF is a success story for three reasons: 

1. Serving the un-served population by reaching out to 

the out of school kids in Punjab (EVS Model). 

2. Serving the under-served population by providing 

quality assurance in partner schools (FAS Model). 

3. Serving the un-served areas by setting up schools 

where no school existed earlier (NSP Model). 

PEF operates in a Public Private Partnership mode. Rather 

than engaging in brick and mortar schemes, it acts as a 

catalyst to activate market forces of supply and demand. 

Demand for schools is created through awareness drives 

and household surveys whereas supply is stimulated by 

encouraging private entrepreneurs to set up schools. 

PEF strives to keep the cost of education affordable 

without compromising the quality of education. Cost of 

imparting quality education through PEF comes to less 

than US$ 5 per child per month. 

Dr. Ambreen Raza 

6


Introduction 

Punjab Education Foundation (PEF/ Foundation) is 

an autonomous statutory body established under 

the Punjab Education Foundation Act of 1991 to 

encourage and promote gratis education in the 

poor strata through private sector operating on 

non-commercial / non-profit basis. 

PEF was restructured under the Punjab Education 

Foundation Act-XII of 2004 for the promotion of 

education, especially encouraging and supporting 

the efforts of the private sector in providing 

education to the poor, through Public Private 

Partnership. 

Mission Statement 

Promotion of quality education through Public 

Private Partnership, encouraging and supporting 

the efforts of private sector through technical and 

financial assistance, innovating and developing new 

instruments to champion wider educational 

opportunities at affordable cost to the poor. 

Public sector 

Common 

Interest 

Private sector 

7


Objectives 

• Provide financial assistance for the establishment, 

expansion, improvement, and management of 

educational institutions and allied projects. 

• Provide incentives to students, teachers, and Educational 

Institutions. 

• Promote public-private partnerships relating to 

education. 

• Provide technical assistance to Educational Institutions 

for testing policy interventions and innovative programs 

for replication. 

• Rank private educational institutions based on 

educational standards. 

• Raise funds through donations, grants, contributions, 

subscriptions etc. 

• Assist Educational Institutions in capacity building, 

including training of teachers. 

• Undertake any other function as may be assigned to it by 

the Board with the approval of the Government. 

8


Governance Structure 

In conformity with the Punjab Education Foundation Act 2004, the 

Governance Model for the organization is shown below: 

Board of Directors 

Finance Committee of BOD 

Executive Committee of BOD 

Program Committee of BOD 

9



The Board is primarily responsible for overseeing the Foundations’ affairs, setting the vision, mission 

and its objectives and ensuring that the organization achieves its desired objectives. At present, Board 

consists of the following fifteen members headed by the Chairman, Mr. Raja Muhammad Anwar: 

Mr. Raja Muhammad Anwar 

Dr. Munawwar S. Mirza, Former Vice Chancellor, University of Education 

Mr. Rana Muhammad Afzal, MPA 

Dr. Zafar Iqbal Qureshi, Lahore University of Management Sciences 

Ms. Saira Afzal Tarar, MNA 

Dr. Amjad Saqib, Vice Chairman, Punjab Education Endowment Fund 

Dr. Mira Phailbus, Former Principal, Kinnaird College Lahore 

Mr. Viqar Ahmed Khan, Chartered Accountant 

Secretary to Government of Punjab, Finance Department 

Secretary to Government of Punjab, School Education Department 

Secretary to Government of Punjab, Literacy and Non Formal 

Basic Education Department 

Secretary to Government of Punjab, Social Welfare Department 

Secretary to Government of Punjab, Planning and Development Department 

Vice Chancellor of the University of Education established by Government 

Managing Director, Punjab Education Foundation 

Chairman 

Member 

Member 

Member 

Member 

Member 

Member 

Member 

Member 

Member 

Member 

Member 

Member 

Member 

Member/Secretary 

10


Board of Directors Committees 

The Board Committees are responsible for overseeing the execution of decisions and strategies approved by the Board and 

to guide the Board in policy formation and strategic planning. 

Finance Committee 

The Finance Committee is responsible for the Foundations’ financial matters, ensuring appropriateness of internal control 

structures and safeguarding of assets of the Foundation and direct the management in financial and internal controls related 

policies and procedures. Following is the list of members of the Finance Committee of Board of Directors: 

Dr. Zafar Iqbal Qureshi 

Convener 

Ms. Saira Afzal Tarar 

Member 

Mr. Rana Muhammad Afzal 

Member 

Dr. Mira Phailbus 

Member 

Secretary to Government of Punjab, Finance Department 

Member 


Member 



Executive Committee 

The Executive Committee of the Board of Directors is responsible for executing the decisions and strategies approved by the 

Board relating to organizational structure and human resource management, including dispute resolution of the 

Foundation’s employees. Following is the list of members of the Executive Committee of Board of Directors: 

Mr. Raja Muhammad Anwar 

Dr. Munawwar S. Mirza 

Mr. Rana Muhammad Afzal 


Vice Chancellor of the University of Education established by Government 



Convener 

Member 

Member 

Member 

Member 

Member 

Member/ Secretary 

Program Committee 

The Program Committee is responsible for looking after the affairs of the programs initiated by the Foundation. Such affairs 

shall include, setting the direction of the programs in accordance with the vision of the Board, approving the strategies and 

overseeing the monitoring and evaluation activities in respect of the programs. Following is the list of members of the 

Program Committee of Board of Directors: 

Dr. Amjad Saqib 

Mr. Viqar Ahmed Khan 

Dr. Mira Phailbus 


Vice Chancellor of the University of Education 

Secretary to Government of Punjab, Social Welfare Department 


Convener 

Member 

Member 

Member 

Member 

Member 


Name of Body 

No. of Meetings 

Held in FY 2011-12 

Frequency of Meetings 


Finance Committee 

Executive Committee 

Program Committee 

4 

3 

2 

2 

11


Executive Management 

Dr. Ambreen Raza 

Mr. Salman Anwar Malik, (ACA) 

Mr. Aamir Iftikhar Ahmed 

Mr. Tanvir Ahmed Zaffar 

Managing Director 

Deputy Managing Director (Finance) 

Deputy Managing Director (HRM) 

Deputy Managing Director (Operations) 

Offices 

Head Office 

78-B1, Gulberg III, MM Alam Road, Lahore, Pakistan. 

Phone: 042-99268114-7 

Fax: 042-99268118 

Email: pef@pef.edu.pk 

Sub-Office Lahore 

58 - A II, Ghalib Market, Gulberg III, Lahore, Pakistan. 

Phone: 042-99263288-9 

Regional Office Rawalpindi 

A-2, Street No. 1, Officers Colony, Golra Road, Rawalpindi, Pakistan. 

Phone: 051-5476562 

Regional Office Multan 

25-G, Shah Rukne Alam Colony, Multan, Pakistan. 

Phone: 061-6780043 

12


Audit and Advisory 

Internal Audit 

The Board of Directors had appointed the M/s. Ernst & Young Ford Rhodes Sidat Hyder & Co. Chartered Accounts as 

Internal Auditor of PEF. 

Ernst & Young (EY) is one of the largest professional service firms in the world and one of the "Big Four" accounting 

firms. Ernst & Young is a global organization of member firms with 167,000 employees in more than 140 countries, 

headquartered in London. EY has invested globally over 240 million pounds on its internal audit methodologies 

and tools, technology solutions, knowledge resources and development of experienced internal audit personnel in 

the last decade. EY has also 48% share of internal audit services globally. 

Quarterly Internal Audit Reports are presented to the Finance Committee and are then forwarded to the Board of 

Directors. 

External Audit 

For the Year Ended 

Duration of Audit 

External Auditors 

External Auditors 

Ranking 

June 30, 2012 

One year (July 1, 2011 to June 30, 2012) 

M/s. Rahman Sarfaraz Rahim Iqbal Rafiq Chartered Accountants 

One of the leading firms in Pakistan 

Member firm of Russell Bedford International 

Category ‘A’ firm on State Bank of Pakistan panel of 

approved auditors 

Satisfactory quality control review (QCR) rating issued by 

the Institute of Chartered Accountant of Pakistan (ICAP) 

Auditors’ Report 

Unqualified (clean report) 

13


Initiatives at a Glance 

Foundation 

Assisted 

School (FAS) 

Education 

Voucher 

Scheme (EVS) 

New School 

Program 

(NSP) 

Continuous 

Professional 

Development 

Program (CPDP) 

14


Outreach of PEF Programs 

All Districts of Punjab 

No. of Partner schools in each district 

15


Year at a Glance 

Foundation Assisted Schools (FAS) 

• Increase in per child fee from Rs.350/- to Rs.400/- up to Middle level classes. 

• Launch of Phase VII with 387 new schools. 

• Increase in FAS enrollment with approximately 233,000 students. 

• Class 5th & 8th students of FAS partner schools secured 31 positions in PEC examination. 

New School Program (NSP) 

• Launch of Phase IV with 159 new schools. 

• Increase in NSP enrollment with approximately 17,000 students. 

• Increment in financial assistance to PEF-NSP schools as per FAS standards. 

Education Voucher Scheme (EVS) 

• Increase in outreach of program with identification and coverage in 206 new areas for vouchers distribution. 

• Increase in registered vouchers with 100,000 students. 

• Increase in EVS partners with 409 schools. 

• Implementation of voucher security measures. 

Continuous Professional Development Program (CPDP) 

• 671 Continuous Teachers’ Development Program (CTDP) trainings conducted: Achievement of 93% target. 

• 296 School Leadership Development Program (SLDP) trainings conducted: Achievement of 62% target. 

• Restructuring of Teaching in Clusters by Subject Specialists (TICSS) Program to Subject Based Support 

Program (SBSP). 

• Launch of Skills Development Program (SDP) as a new initiative. 

Academic Development Unit (ADU) 

• Conduction of annual Quality Assurance Test (QAT) for all programs: 448,695 students covering 3014 schools 

all over Punjab 

• Revision of content book for partner schools in accordance with the new books published by 

Punjab Textbook Board (PTB) 

• Review of teachers’ manuals developed by Directorate of Staff Development (DSD). 

16


PEF Programs 

Foundation Assisted Schools (FAS) 

Foundation Assisted Schools (FAS) is a flagship program of Punjab Education Foundation. It ensures provision of 

quality education through Public Private Partnership. FAS provides financial assistance to private sector schools in 

cities, towns and far flung areas of the province and ensures free education to children from deprived strata of the 

society. FAS program was introduced in 2005 with a limited outreach to 54 partner schools in 6 districts. However, 

since 2008, PEF has given consistently focused attention to FAS program and it has been extended to all 36 districts 

of Punjab working with 2,150 partner schools catering to the needs of the one million deserving students. 

FAS Achievements and Progress in FY 2011-12 

• Students from FAS partner schools have secured top positions 5 th and 8 th class PEC examinations. The overall 

strength of PEF schools is only 3% of the total public and private schools appearing in PEC examinations. In 

2011 PEC examinations, FAS students of 5 th class secured 21 top positions (which is 24% of top positions in the 

province) & students of 8 th class secured top 10 positions (which is 14% of total top positions in the province). 

• Launch of Student Information System (SIS): 

Student Information System (SIS) is an integrated management system that helps 

partner schools in recording, enumerating & arranging students information. It 

important to note that PEF is pioneer in implementing integrated MIS for private 

schools in Punjab. 

• Launch of Phase VII 

• Selection criteria for FAS Phase VII expansion was 

advertised in national dailies across Punjab and 

eligible candidate schools that qualified 

preliminary Quality Assurance Test were later 

physically inspected and scrutinized before 

signing Partnership Agreements. 

• Phase VII expansion program was launched in 

April 2012, as a result of which FAS program 

outreached the 36 districts of Punjab. 

• Increment in Financial Assistance to FAS Partner Schools: 

During the financial year 2011-12, tuition fee for middle level students has been increased to Rs. 400/- from 

Rs. 350/-. The level wise fee details are given hereunder: 

• Rs. 400/- Per Student for Elementary Level & Secondary Level Arts Students. 

• Rs. 500/- Per Student for Secondary Level Science & Higher Secondary Level Arts Students. 

• Rs. 700/- Per Student for Higher Secondary Level Science Students. 

17


• FAS Phase VII expansion has added 387 new schools to 

FAS program. 

FAS Partner Schools 

1,763 

2,150 

2010-11 2011-12 

District wise increase in FAS Partner schools is exhibited hereunder: 

FAS Schools Year 2011 Year 2012 

3 

4 

4 

4 

50 

60 

36 

36 

16 

21 

52 

20 

24 

35 

46 

41 

58 

90 

125 

143 

186 

201 

257 

281 

Attock 

Bahawalpur 

Bhakkar 

Bahawalnagar 

Chakwal 

Chiniot 

D.G. Khan 

Gujrat 

Jehlum 

Jhang 

Khushab 

Lahore 

18



FAS Schools 

Year 2011 Year 2012 

40 

53 

4 

6 

34 

48 

7 

9 

9 

12 

29 

34 

23 

27 

33 

44 

117 

137 

106 

114 

189 

230 

219 

262 

Layyah 

Lodhran 

Mandi Bahauddin 

Mianwali 

Multan 

Muzaffargarh 

Nankana Sahib 

Narowal 

Okara 

Pakpattan 

Rahimyar Khan 

Rajanpur 

FAS Schools Year 2011 Year 2012 

5 

9 

0 

89 

0 

0 

0 

1 

0 

0 

1 

0 

3 

4 

7 

5 

6 

25 

26 

22 

28 

18 

16 

69 

Rawalpindi 

Sargodha 

Sheikhupura 

Sialkot 

Faisalabad 

Gujranwala 

Khanewal 

Sahiwal 

T.T. Singh 

Hafizabad 

Kasur 

Vehari 

19


Increase in FAS Enrollment: 

Launch of Phase VII has added 100,000 new students to the program in addition to new admissions in 

existing partner schools. 

Enrollment 

777,507 

1,010,509 

2010-11 

2011-12 


FAS Enrollment 


869 

1,732 

112,123 

22,589 

27,110 

74,980 

96,958 

16,167 

18,262 

142,026 

6,939 

10,186 

14,966 

34,942 

9,745 

13,831 

900 

1,198 

41,340 

64,926 

15,811 

22,539 

13,863 

29,175 

Attock 

Bahawalpur 

Bhakkar 

Bahawalnagar 

Chakwal 

Chiniot 

D.G. Khan 

Gujrat 

Jehlum 

Jhang 

Khushab 

Lahore 

20


FAS Enrollment Year 2011 Year 2012 

8,786 

21,044 

50,042 

70,820 

903 

1,914 

9,451 

19,316 

2,317 

3,690 

3,659 

5,852 

8,091 

15,349 

9,459 

13,178 

9,579 

18,139 

29,271 

55,297 

104,698 

126,167 

92,415 

137,491 

Layyah 

Lodhran 

Mandi Bahauddin 

Mianwali 

Multan 

Muzaffargarh 

Nankana Sahib 

Narowal 

Okara 

Pakpattan 

Rahimyar Khan 

Rajanpur 

FAS Enrollment 


1,561 

3,211 

6,889 

3,005 

3,060 

1,778 

9,542 

12,608 

15,733 

- 

- 

822 

- 

36,068 

4,756 

- 

468 

- 

812 

- 

293 

- 

4,858 

25,244 

Rawalpindi 

Sargodha 

Sheikhupura 

Sialkot 

Faisalabad 

Gujranwala 

Khanewal 

Sahiwal 

T.T. Singh 

Hafizabad 

Kasur 

Vehari 

21


New School Program (NSP) 

New School Program was initiated as pilot project in March 2008 to allure private sector entrepreneurs to set up 

schools in distant and remote areas of the province where private schools are scarce or absent altogether. 

New School Program not only facilitates the enrollment of out of school children but also ensures their retention 

through effective policies, monitoring & evaluation, capacity building and Quality Assurance Test. 

• Financial assistance to develop educational infrastructure by giving Rs.400 per student to the maximum of 300 

students per school. 

• Grace period of six months to build infrastructure of school by giving Rs.400 per child for 50 students even if 

there is no student enrolled at the time of school’s selection. 

• Continuity of partnership is based on performance in Quality Assurance Test. 

• Partner schools will not charge anything in any form from the students under any circumstances. 

School’s Selection Criteria 

• The applicant may apply for setting up a school in accessible location where there is no public or private school 

within 2 km radius. 

• Existence of non formal schools within a radius of 2 km from the proposed site for school will be over looked, 

existence of boys school in 2 Km radius for opening of girl school and vice versa shall be over looked. 

• Similarly, if only primary school exists within 2 km of proposed site, elementary/ high school may be opened at 

the proposed site. 

• Applicant and school Principal must be educated having acquired at least intermediate level qualification. 

• There is no minimum enrollment limit at the time of school selection. However, preference is given on the basis 

of following in school selection: 

a) Functional schools in owned building 

b) Non functional schools in owned building 

c) Functional schools in rented building 

Expansion in FY 2011-12 

June 2011 

June 2012 

Increase 

Students Enrollment 

19,585 

37,073 

17,488 

No. of NSP Partner Schools 

195 

354 

159 

22


Phase IV of NSP was launched in 2012 to expand the outreach of the program. After due process, 159 new schools 

were partnered with for the provision of free education to deserving children living in far flung rural areas. 

Increase in Enrollment - 89% 

40,000 

30,000 

20,000 

10,000 

0 

June 2011 June 2012 

Increase in No. of Partner Schools - 82% 

400 

350 

300 

250 

200 

150 

100 

50 

0 

June 2011 June 2012 

23


Education Voucher Scheme (EVS) 

Education Voucher Scheme was launched in 2006 with the aim to benefit children belonging to less affluent and 

underprivileged areas, who otherwise cannot get education due to financial and social constraints. This scheme 

has got tremendous response due to its beneficial effect on poor segments of the society. Education Voucher 

Scheme employs innovative techniques to increase enrollment and enhance the quality of education. Main 

features of this initiative are: 

Low Cost Education 

• Average cost of Rs. 350 per student, much lower than traditional programs 

• No upfront cost of setting up new schools (e.g. infrastructure) 

Superior Targeting 

• Mechanisms to ensure that subsidies are extended to the most deserving e.g. out of school and high risk 

children of deserving/ slums/ underprivileged areas 

Better Quality Outcomes 

• Better quality outcomes maintained and demonstrated by regular testing of students through Quality 

Assurance Test. 

Monitoring and Evaluation (M&E) 

• Internal M&E Mechanism for periodic evaluations 

• External M&E Mechanism for an independent check on program and policies implementation 

With a view to promote affordable quality education for the less privileged and disenfranchised segments of 

society, Punjab Education Foundation has planned to further expand its EVS program in all districts of the 

province. 

The voucher is redeemable against payment of fee in the private educational institutions partnered with PEF 

under EVS program. EVS enables the children of age 4-17 years from poorest families to get free education in 

their nearest EVS Partner private schools of their own choice. Vouchers are issued after every 4 months through 

distribution camps set up in different areas. The vouchers are redeemed from schools within a specified period 

after distribution. Payment is made to schools in the last month of the period of validity of the vouchers. 

Selection Process/ Strategy 

Selection of area is the most significant segment of voucher scheme wherein household surveys are conducted 

to identify the number of children available in specific geographic boundaries as per voucher eligibility criteria. 

24


During analysis most deserving children are identified and registered for voucher scheme. Children are 

registered on the basis of criteria given below: 

• Out of school children 

• Drop outs 

• Never went to school 

• Child Laborers 

• Orphans 

• Children of widows, Divorces, single parents 

• Parents with special needs 

• Children at risk of dropping out 

Definition of Out of School Child: A child of school 

going age as defined by the State if not attending any 

formal educational institution. 

Definition of Drop out: A child of school going age 

as defined by the State if not attending any formal 

educational institution for three months (excluding 

summer vacations). 

Definition of Child Labor: A child of school going 

age as defined by the State either attending or not 

attending any formal or non formal educational 

institution but engaged in any kind of labor activity. 

Simultaneously, school selection process is initiated by inviting expressions of interest from schools of selected 

areas through advertisement. Previously, preliminary Quality Assurance Test of the shortlisted schools was 

conducted to assess quality standards through students’ learning outcome assessments. The schools who 

qualified the Quality Assurance Test were inspected for assessment of infrastructure & educational environment 

and agreements were signed with the schools recommended for partnership after physical inspection reports. 

Recently, criteria have been revised wherein preliminary Quality Assurance Test is exempted for selection 

purpose. 

Continuity of partnership is dependent on results of Quality Assurance Tests as per required percentages. In case 

of two consecutive failures in QAT, the partnership discontinues. 

Expected Outcomes 

• Decrease in out of school children 

• Increase in primary completion rate 

• Increase in access to schools in vicinity 

• Competitive environment among private institutions to retain maximum students/ enhanced retention 

• Competition to improve quality of education 

• Increase in enrollment at Primary level partner schools 

• Increase in female enrollment 

• Better employment opportunities if linked with Skill Development Program 

• Women Empowerment: Increase in employment opportunity for female teachers 

• Improvement in students learning outcomes 

25


EVS Achievements in FY 2011-12 

• During the year, 206 new areas were identified as worthy of voucher distribution as per area selection criteria. 

• 100,000 new students registered. 

• 409 schools selected for partnership. 

• Security measures have been implemented in order to streamline process of voucher’s distribution up to 

redemption. 

• Guidelines prepared and shared with partner schools in order to create better understanding of the process 

among school owners and their management. 

Periodic Progress 

No. of Operational Areas 

235 

87 

1 5 5 5 

29 

2006 

2007 2008 2009 2010 2011 2012 

No. of EVS Schools 

576 

263 

153 

11 

35 

52 

69 

2006 2007 2008 2009 2010 2011 2012 

26


Vouchers Redemption During FY 2011-12 

Districts with Redemption > 90% 

100% 

98% 

97% 

96% 

95% 

95% 

91% 

90% 

90% 

Chakwal 

Pakpattan 

Sahiwal 

Narowal 

Jhang 

D.G Khan 

Hafizabad 

Attock 

Lodhran 

Districts with Redemption < 70% 

44% 

46% 

57% 61% 61% 

67% 

16% 18% 

Sheikhupura 

Gujrat 

Mianwali 

Sialkot 

Bhakkar 

Rawalpindi 

Khushab 

Faisalabad 

27


Continuous Professional Development Program (CPDP) 

Continuous Professional Development Program was launched in August 2005. CPDP was designed to contribute 

towards the aim of PEF to promote quality education by providing technical assistance in the form of trainings 

and services of Subject Specialists (SS) to low cost private education sector. 

Four programs are operational under the umbrella of CPDP: 

Continuous Teachers’ Development Program (CTDP) 

By keeping in view the importance of professional development of teachers, CTDP was launched in August 2005 

for the training of primary school teachers of low cost private sector schools with particular emphasis on PEF 

Partner schools. Major focus of the trainings remains on the content knowledge of different subjects like English, 

Mathematics and Science. At present, it focuses on teachers’ training of PEF Partner schools only. 

School Leadership Development Program (SLDP) 

In order to sensitize school principals and owners to facilitate trained teachers to incorporate newly learnt 

teaching techniques into their classroom practices, Punjab Education Foundation introduced an initiative under 

the umbrella of CPDP by the name of SLDP in February 2007. It was decided that Principals/ Vice-principals/ Head 

Teachers of PEF Partner schools shall be trained on administration and management of the school through SLDP. 

Subject Based Support Program (SBSP) 

SBSP was launched as Teaching in Clusters by Subject Specialists (TICSS) in 2006, with the aim of providing 

services of qualified and competent Subject Specialists (SS) to low cost secondary schools in rural and less 

affluent urban areas. Each SS provides services at a cluster of two schools for duration of one academic year. At 

present the program is known by the name Subject Based Support Program where each SS is allocated one 

school per academic year to work on School Improvement Plan in collaboration with the school head and staff. 

The services of SS are provided in subjects of English, Mathematics, Physics, Chemistry and Biology to low cost 

non PEF Partner schools. 

Skills Development Program (SDP) 

Different programs of PEF laid emphasis on the need of a skill based program for the students of our partner 

schools. To explore avenues in this dimension of education, Skills Development Program was initiated in March 

2011 for the provision of vocational orientation to the students of age 14 and above, in our partner schools. 

Despite a successful launch, the program was halted due to lack of budget provision in 2012. 

28


Plan for FY 2011-12 

Type of Expenses 

CTDP 

SLDP 

SBSP (SS Salary) 

SDP 

Trainings Planned 

720 

480 

240 

Trainings planned to 

cover 5,000 students 

Estimated Budget (Rs.) 

56,520,000 

14,400,000 

140,760,000 

40,000,000 @ the 

cost of Rs. 8,000 each 

Execution of Plan 

Details of the execution of plan in actual during FY 2011-12 are as follows: 

CTDP 

Training Level 

No. of Trainings 

Schools Benefitted 

Teachers Benefitted 

Level 1 

349 

1,295 

11,496 

Level II 

322 

822 

6,760 

Total 

671 

2,117 

18,256 

SLDP 

Training Level 

No. of Trainings 

Schools Benefitted 

Teachers Benefitted 

Level 1 

138 

1,021 

2,261 

Level II 

158 

1,012 

2,251 

Total 

296 

2,033 

4,512 

29


Graphical representation of CTDP and SLDP actual versus targeted is as under: 

800 

700 

600 

500 

400 

300 

200 

100 

0 

Execution of Plan for FY 2011-12 

Trainings planned 

Trainings conducted 

CTDP 

SLDP 

CTDP achieved 93% of its target and trained a large number of Primary level teachers from FAS partner schools. 

Similarly for SLDP, 62% target was achieved. A number of SLDP trainings were cancelled due to non availability 

of school principals and less number of participants to complete a training batch in a cluster. 

SBSP 

Year No. of SS No. of Schools No. of Districts 

No. of Students 

Benefitted 

July to Dec. 2011 

88 

176 

24 

10,560 

Jan. to June 2012 

61 

61 

23 

6,100 

TICSS program was re-structured as SBSP on 3 rd February, 2012 It was decided in the same meeting of Program 

Committee that SBSP shall be expanded to other districts and further hiring of Subject Specialists shall be 

done after successful implementation of the new SBSP. 

SDP 

No. of Courses 


Benefitted 

No. of Schools 

Districts 

33 811 62 

Lahore, Multan, Sialkot, 

Faisalabad, Vehari, Bahawalpur 

30


Academic Development Unit (ADU) 

By conducting Quality Assurance Tests, the Academic Development Unit of Punjab Education Foundation is 

particularly responsible to ensure the provision of quality education to all partner schools working under its 

programs i.e. FAS, EVS, NSP and SBSP. Previously, these tests were conducted biannually but from the academic 

year 2012-2013, one comprehensive testing activity was held for each program. 

The reason of this modification is in pursuance of the decision of Board, to conduct only one QAT in an 

academic year for all programs (NSP, FAS, EVS and SBSP). 

The new model of QAT (from biannual to single comprehensive testing) was applied and administered for all 

the programs. The Academic Development Unit (ADU) has also managed and conducted the 11 th EVS, 6 th SBSP 

and 8 th NSP written & NSP Phase IV oral QAT. Thoroughly. 

During the comprehensive testing for 13 th FAS QAT (Phase-I, Phase-II), SBSP, NSP and EVS QATs, a total of 

448,695 students were covered from 3,014 schools all over Punjab. 

The detail is shown in the following table: 

Program 

FAS (Phase I & II) 

EVS 

NSP (Written) 

SBSP 

NSP (Oral) 

No. of Schools 

2300 

253 

193 

47 

221 


425,000 

1,946 

9,582 

4,432 

7,735 

31

Financials


Budget Utilization in Last Five Years 

Description 

2011-12 2010-11 

2009-10 2008-09 2007-08 

Rs. In Million 

Expenditures 

4,848 

3,555 

2,763 

2,112 

1,285 

Budget 

6,000 

4,500 

4,000 

3,000 

1,800 

% of Budget Utilization 

81% 

79% 

69% 

70% 

71% 

Rs. In Million 

7,000 

6,000 

5,000 

4,000 

3,000 

2,000 

Budget 

Expenditures 

1,000 

2011-12 

81% 

2010-11 

79% 

2009-10 

69% 

2008-09 

70% 

2007-08 

71% 

33


Variance Analysis: Actual Vs Budgeted Expenditures 

Description 

Actual 

Expenditures 

Budgetary 

Allocation 

% of Budget 

Utilization 

(Rs.) 

Foundation Assistance to Schools 

3,840,926,971 

4,384,128,000 

88% 

New School Program 

111,854,600 

337,476,000 

33% 

Education Voucher Scheme 

197,022,950 

250,507,000 

79% 

Academic Development Unit 

52,203,704 

93,972,000 

56% 

Free PTB Text Books 

259,651,555 

500,000,000 

52% 

Continuous Professional Development Program 

116,685,187 

155,367,000 

75% 

Brain of Punjab 

- 

3,000,000 

0% 

Seminars, Workshops and Symposiums & 

Capacity Building of PEF Staff 

2,673,706 

26,324,000 

10% 

Program Related Expenditures 

141,678,665 

156,920,000 

90% 

Administrative & General Expenditures 

122,020,593 

151,585,000 

80% 

7,000 

6,000 

5,000 

4,000 

3,000 

2,000 

1,000 

Budget Utilization for FY 2011-12 

(Rs. In Million) 

Budgetary Allocation 

Actual Expenditures 

Program 

Expenditures 

80% 

Program Related Administrative & 

Expenditures General 

90% Expenditures 

80% 

34


Budgeted Vs Actual Expenditures FY 2010-11 

Budgetary Allocation for FY 2011-12 

3% 2% 

Program Expenditures 

Program Related 

Expenditures 

95% 

Administrative & 

General Expenditures 

Actual Expenditures for FY 2011-12 

2.9% 2.5% 



Expenditures 

94.6% 



35


Comparison of Actual Expenditures for FY 2010-11 Vs FY 2011-12 

Description 

Foundation Assisted Schools 




Continuous Teachers Development Program 

School Leadership Development Program 

Subject Based Support Program 

Brain of Punjab 

Seminars, Workshops and Symposiums 

Provision against doubtful Loans 

Program Related Expenditures 

Administrative & General Expenditures 

Actual 

Expenditures for 

FY 2011-12 

3,840,926,971 

111,854,600 

197,022,950 

52,203,704 

59,852,827 

9,656,975 

47,175,385 

- 

1,754,405 

2,421,874 

141,678,665 

122,020,593 

(Rs.) 

Actual 

Expenditures for 

FY 2010-11 

3,105,509,237 

65,121,817 

59,592,215 

38,043,594 

12,518,262 

3,408,865 

62,278,692 

1,080,051 

865,022 

22,070,542 

87,597,755 

96,937,403 

% Increase/ 

(Decrease) 

24% 

72% 

231% 

37% 

378% 

183% 

-24% 

-100% 

103% 

-89% 

62% 

26% 

5,000 

4,500 

4,000 

3,500 

3,000 

2,500 

2,000 

1,500 

1,000 

500 

- 

Percentage Increase from FY 2010-11 

Program 

Expenditures 

36% 

62% 26% 


Expenditures 


General 

Expenditures 

FY 2010-11 

FY 2011-12 

NOTE: Increase of 62% in Program Related Expenditures is due to considerable expansion in NSP, 

EVS and launch of Phase VII of FAS during the year. 

36


Division of Expenditures for FY 2011-12 

2.9% 2.5% 

94.6% 



Expenditures 



Division of Expenditures for FY 2010-11 

2.5% 

2.7% 

94.8% 



Expenditures 



Percentage of PEF Program Expenditures for FY 2011-12 

3% 4% 1% 3% Foundation Assistance to 

Schools 




89% 

Continuous Professional 

Development Program 

HR Cost in Comparison with Total 

Actual Expenditure FY 2011-12 

3% 

HR Cost in Comparison with 

Budget FY 2011-12 

2.44% 

97% 

HR Cost (Program + 

Administrative 

Department) 

Total Expenditures 

97.56% 

HR Cost (Program + 

Administrative 

Department) 

Total Expenditures 

37

38 

Punjab Education Foundation


39



Balance Sheet 

As at 30 June 2012 

Non current assets 

2012 2011 

Note Rupees Rupees 

Restated 

Property and equipment 8 51,205,814 30,964,224 

Advance for purchase of lands 9 4,114,163 4,042,500 

Long term loans 10 7,235,985 12,783,622 

Long term Security Deposits 11 1,342,500 1,332,500 

63,898,462 49,122,846 

Current assets 

Current portion of long term loans 10 1,969,684 5,227,078 

Profit Accrued on Short term Investments 12 81,894,810 20,909,222 

Short term investments 13 2,063,100,000 4,711,100,000 

Stock of Text Books 14 71,775,653 - 

Advances, deposits, prepayments 

and other receivables 15 19,175,380 16,234,606 

Cash and bank balances 16 2,134,075,205 1,473,358,436 

4,371,990,732 6,226,829,342 

Less: Current liabilities 

Accrued and other liabilities 17 388,055,689 44,557,946 

Net current assets 3,983,935,043 6,182,271,396 

Less: Non-current liabilities 

Long term loan 18 23,222,208 31,719,417 

Deferred credits 19 1,280,490,473 4,019,868,838 

Deferred liabilities 20 49,403,347 37,500,776 

Net assets 2,694,717,477 2,142,305,211 

Contingencies and commitments 21 

Represented by: 

2,694,717,477 2,142,305,211 

General Fund 22 200,000,000 200,000,000 

Endowment Fund 23 2,452,412,266 - 

Accumulated Surplus 42,305,211 1,942,305,211 

The attached notes 1 to 34 form an integral part of these financial statements. 

2,694,717,477 2,142,305,211 

Ambreen Raza Salman Anwar Malik 

Lahore Managing Director Deputy Managing 

Director (Finance) 

40



Income & Expenditure Account 

For the year ended 30 June 2012 


2011 


Restated 

Income 

Profit / mark-up on bank deposits and TDRs 24 513,229,485 498,976,068 

Amortization of deferred credits 19.2 4,847,567,365 3,555,319,819 

Other income 25 39,182,781 16,460,556 

5,399,979,631 4,070,756,443 

Expenditure 

Program expenditure 26 4,583,440,547 3,370,508,297 

Program related expenditure 27 141,678,665 87,597,755 

Administrative and general expenses 28 122,020,593 96,937,403 

Financial and other charges 29 427,560 276,364 

4,847,567,365 3,555,319,819 

Surplus for the year 552,412,266 515,436,624 


Ambreen Raza 

Salman Anwar Malik 



41



Statement of Comprehensive Income 



Rupees 

2011 

Rupees 

Restated 


Other comprehensive income - - 

Total surplus for the year 552,412,266 515,436,624 


Ambreen Raza 




42



Statement of Cash Flows 

For the period ended 30 June 2012 

Cash flow from operating activities 


2011 


Restated 


Adjustments for non cash items and other charges: 

Depreciation 10,071,592 7,854,840 

Amortization of software 137,612 29,889 

Amortization of government grants (4,847,567,365) (3,555,319,819) 

Profit/ mark-up on TDRs and bank deposits (513,229,485) (498,976,068) 

Gain on Sale of Assets - (1,993,614) 

Provision for gratuity 7,566,406 6,059,317 

Provision for pension 6,815,317 5,863,512 

Provision for GP fund 245,072 336,248 

Provision for benevolent fund 131,021 56,825 

Benefit payments made (3,328,912) (2,261,010) 

Provision against doubtful loans 2,421,874 22,070,542 

Finance Cost 427,560 276,364 

(5,336,309,308) (4,016,002,974) 

Deficit before working capital changes (4,783,897,042) (3,500,566,350) 

Effect on cash flow due to working capital changes 

(Increase)/decrease in current assets: 

Stock of Books (71,775,653) - 

Advances, deposits, prepayments and other receivables (2,940,774) (9,314,920) 

Profit Accrued on Short term Investments (60,985,588) 39,808,576 

(135,702,015) 30,493,656 

Increase/ (decrease) in liabilities 

Long-term loan (8,497,209) 859,982 

Accrued and other liabilities 343,497,743 36,421,740 

Net cash used in operating activities (4,584,598,523) (3,432,790,972) 

Finance cost paid (165,556) (37,498) 

Net cash outflow from operating activities (4,584,764,079) (3,432,828,470) 

Cash flows from investing activities 

Capital expenditure incurred (30,310,794) (7,164,268) 

Short term Investments 2,648,000,000 (1,750,000,000) 

Long term security deposits (10,000) (650,000) 

Profit on bank deposits and TDRs 513,229,485 498,976,068 

Disposal proceeds - 2,008,000 

Payment received from/ loan to employees 314,820 (34,167) 

Payment received from long term loans 6,068,337 3,014,493 

Net cash inflow/(outflow) from investing activities 3,137,291,848 (1,253,849,874) 

Cash flows from financing activities 

Government grant received 2,108,189,000 4,500,000,000 

Net cash inflow from financing activities 2,108,189,000 4,500,000,000 

Net increase/(decrease) in cash and cash equivalents 660,716,769 (186,678,344) 

Cash and cash equivalents at the beginning of the year 1,473,358,436 1,660,036,780 

Cash and cash equivalents at the end of the year 16 2,134,075,205 1,473,358,436 


Ambreen Raza 




43



Statement of Changes in Fund Balances 

As at 30 June 2012 

General Endowment Accumulated 

Total 

fund fund Surplus 

Rupees Rupees Rupees Rupees 

Fund balance as at 30 June 2010 200,000,000 - 1,426,258,069 1,626,258,069 

Effect of correction of error (Refer 

note 7.2) 

Fund balance as at 30 June 2010 

Restated 

Surplus for the year transferred to 

Accumulated Surplus 

610,518 610,518 

200,000,000 - 1,426,868,587 1,626,868,587 

- - 515,436,624 515,436,624 

Fund balance as at 30 June 2011 200,000,000 - 1,942,305,211 2,142,305,211 


Surplus for the year transferred to 

Endownment Fund 

Accumulated Surplus transferred to 

Endowment Fund 

- 552,412,266 (552,412,266) - 

- 1,900,000,000 (1,900,000,000) - 

Fund balance as at 30 June 2012 200,000,000 2,452,412,266 42,305,211 2,694,717,477 


Ambreen Raza 




44



Notes to the financial statements 


1 Nature and status of the Foundation 

Punjab Education Foundation (PEF) is an initiative of the Punjab Government and was established in 1991 

under Punjab Education Foundation Act, 1991 and subsequently restructured in 2004 as a body corporate under 

the Punjab Education Foundation Act, 2004. The principal place of operations of PEF is situated at 78 - B1, 

M.M Alam Road, Gulberg III Lahore. The principal activity of the Foundation is to provide technical and 

financial assistance for the establishment, expansion, improvement and management of educational institutions, 

incentives to students and teachers and promotion of quality education through public-private partnerships. 

2 Basis of preparation 

These financial statements have been prepared under the historical cost convention except for certain retirement 

benefits which are stated at present value. 

3 Statement of compliance 

These financial statements have been prepared in accordance with the approved accounting standards as 

applicable in Pakistan, the provisions of the Punjab Education Foundation Act, 2004 and the Punjab Education 

Foundation Rules, 2005. Approved accounting standards comprise of such International Financial Reporting 

Standards (IFRS) issued by the International Accounting Standards Board (IASB) as applicable in Pakistan, the 

provisions of the Punjab Education Foundation Act, 2004 and the Punjab Education Foundation Rules, 2005. In 

case requirements differ, the provisions of the Punjab Education Foundation Act, 2004 and the Punjab 

Education Foundation Rules, 2005 shall prevail. 

4 Significant accounting policies: 

4.1 Staff retirement schemes 

4.1.1 Pension scheme 

The Foundation operates a non-funded pension scheme for all its permanent employees subject to 

completion of a prescribed qualifying period of service. Provision is made annually on the basis of 

actuarial recommendation to cover obligation under the scheme and contributions are kept in a separate 

bank account of the Foundation ear marked for this purpose (note 16) as a separate Fund and Trust 

Deed has not been established. Actuarial valuation of the scheme is undertaken at appropriate regular 

intervals and the latest valuation was carried out at 30 June 2012 using the "Projected Unit Credit 

Method". 

The amount recognized in balance sheet represents the present value of the defined benefit obligation as 

on 30 June 2012 as adjusted for unrecognized actuarial gains and losses. 

Cumulative net unrecognized actuarial gains and losses at the end of the previous year if exceed 10% of 

the greater of the present value of the Foundation's obligations and the fair value of plan assets are 

amortized over the expected average working lives of the participating employees. Staff retirement 

benefits are payable to staff on completion of prescribed qualifying period of service under this scheme. 

45


4.1.2 General provident fund 

The Foundation operates a non-funded general provident fund scheme for permanent employees. 

Monthly contributions are made by subscribers at the prescribed amount, deducted at the time of 

payment of salary and are kept in a separate bank account of the Foundation ear marked for this purpose 

(note 16) as a separate Fund as Trust Deed has not been established. Interest is credited to the balance 

of General Provident Fund at last day of each year at the rate prescribed by the Government of Punjab. 

General Provident Fund is payable to staff on completion of prescribed qualifying period of service to 

the amount standing to his credit in the fund. 

4.1.3 Gratuity 

The Foundation operates a non-funded gratuity scheme for all its contractual employees subject to 

completion of a prescribed qualifying period of service. Provision is made annually to cover the 

obligations under the scheme on the basis of actuarial recommendation. Actuarial valuation of the 

scheme is undertaken at appropriate regular intervals and the latest valuation was carried out on 30 June 

2012 using the "Projected Unit Credit Method". 

The amount recognized in balance sheet represents the present value of the defined benefit obligation as 

on 30 June 2012 as adjusted for unrecognized actuarial gains and losses. 

Cumulative net unrecognized actuarial gains and losses at the end of the previous year if exceed 10% of 

the greater of the present value of the Foundation's obligations and the fair value of plan assets are 

amortized over the expected average working lives of the participating employees. Staff retirement 

benefits are payable to staff on completion of prescribed qualifying period of service under this scheme. 

4.2 Short term benefits 

Employees are entitled to encash leaves if not availed during the preceding year. Leaves are 

accumulated at the rate of 4 days for each calendar month. Provision is made annually on gross salary to 

cover the obligation. 

4.3 Property and equipment 

Owned property and equipment, except for freehold land are stated at cost less accumulated 

depreciation and accumulated impairment losses, if any. Freehold land is stated at cost less any 

identified impairment loss. Depreciation is charged to profit and loss account on all fixed assets from 

the month in which these are capitalized, while no depreciation is charged for the month in which an 

asset is disposed off. Depreciation on fixed assets is charged on straight-line basis so as to write off the 

cost of an asset over its estimated useful life at the rates specified in note 8. Normal repairs and 

maintenance are charged to income as and when incurred. All items valued above Rs. 5,000 and having 

economic benefit beyond one year are capitalized. 

Expenditure incurred to acquire computer software is capitalized as an intangible asset and stated at 

cost less accumulated amortization and any identified impairment loss. Computer software is amortized 

on a straight line basis over a period of three years. Amortization on additions to intangible assets is 

charged from the month in which an asset is available for use, while no amortization is charged for the 

month in which the asset is disposed off. 

46


47


4.8 

Stock of Text Books 

Stock of Text Books is valued at cost. Cost includes the purchase price of books and transportation 

cost. 

4.9 Cash and cash equivalents 

Cash and cash equivalents are carried in the balance sheet at cost. For the purpose of cash flow 

statement cash and cash equivalents comprise cash in hand and bank balances. 

4.10 

Taxation 

The foundation is exempt from Income Tax and has been allotted free tax number by the Federal Board 

of Revenue, Pakistan. 

5 

4.11 

Presentation 

The corresponding figures are rearranged wherever necessary for the purpose of comparison and have 

been rounded off to nearest rupee. Appropriate disclosure is given in relevant note in case of material 

rearrangements. 

Adoption of new standards, amendments and interpretations to the published approved accounting 

During the year, the following standards, amendments to standards and interpretations including amendments to 

interpretations became effective, however, the application of these amendments and interpretations do not have 

material impact on the financial statements of the Foundation: 

Amendments to IAS 1 - Presentation of Financial Statements 

Amendments to IAS 24 - Related Party Disclosures 

Amendments to IFRS 7 - Financial Instruments - Disclosures 

Amendments to IFRIC 13 - Customer Loyalty Programmes 

Amendments to IFRIC 14 - Prepayments of a Minimum Funding 

5.1 

Effective date (accounting 

period beginning on or after) 

January 1, 2011 


July 1, 2011 



Standards, interpretations and amendments to published approved accounting standards that are 

not yet effective 

The following standards, amendments and interpretations are effective for accounting periods, 

beginning on or after the date mentioned against each of them. These standards, amendments and 

interpretations are either not relevant to the Foundation's operations or are not expected to have 

significant impact on the Foundation's financial statements other than certain additional disclosures. 

Effective date (accounting 

period beginning on or after) 

Amendments to IFRS 7 - Financial Instruments - Disclosures 


& January 1, 

2015 

Amendments to IAS 1 - Presentation of Financial Statements January 1, 2013 

Amendments to IAS 12 - Income Taxes January 1, 2012 

Amendments to IAS 16 - Property, Plant and Equipment January 1, 2013 

Amendments to IAS 27 - Consolidated and separate financial statements 


& January 1, 

2014 

Amendments to IAS 28 - Investments in Associates January 1, 2013 

Amendments to IAS 32 - Financial Instruments - Presentation 


& January 1, 

2014 

IFRIC 20 - Stripping Cost in the Production Phase of a Surface Mine January 1, 2013 

48


Other than the aforesaid standards, interpretations and amendments, the International Accounting 

Standards Board (IASB) has also issued the following standards which have not been adopted by the 

Securities and Exchange Commission of Pakistan: 

IFRS 1 – First Time Adoption of International Financial Reporting Standards 

IFRS 9 – Financial Instruments 

IFRS 10 – Consolidated Financial Statements 

IFRS 11 – Joint Arrangements 

IFRS 12 – Disclosure of Interests in Other Entities 

IFRS 13 – Fair Value Measurement 

The amendments to IAS 19 Employee Benefits are effective for annual period beginning on or after 

January 1, 2013. The amendments eliminate the corridor approach and therefore require an entity to 

recognize changes in defined benefit plans obligations and plan assets when they occur. All actuarial 

gains or losses in other comprehensive income arising during the year are recognized immediately 

through other comprehensive income. The amendments also require additional disclosures and 

retrospective application with certain exceptions. Management anticipates that the amendments will be 

adopted in the Foundation’s financial statements for annual period beginning on or after January 1, 

2013, and the application of amendments may have impact on amounts reported in respect of defined 

benefit plans. 

The potential impact of the said changes on the financial position and performance for the year 2012 is 

estimated as under: 

Amounts (Rs.) 

Net decrease in other comprehensive income 

12,575,341 

Increase in deferred liabilities: 

Gratuity 7,237,163 

Pension 5,338,178 

6 Significant accounting judgments, estimates & assumptions 

The preparation of financial statements in conformity with approved accounting standards requires management 

to make estimates, assumptions and use judgments that affect the application of policies and reported amount of 

assets and liabilities and income and expenses. Estimates, assumptions and judgments are continually evaluated 

and are based on historical experience and other factors, including reasonable expectations of future events. 

Revision to accounting estimates are recognized prospectively commencing from the period of revision. The 

areas where various assumptions and estimates are significant to the Foundation’s financial statements or where 

judgments were exercised in application of accounting policies are as follows: 

- Residual values of property and equipment (note 4.3 and 8) 

- Staff retirement benefits (note 4.1 and 20) 

Useful lives & residual values of property & equipment 

The Foundation reviews appropriateness of the rate of depreciation, useful lives and residual values used in the 

calculation of depreciation. Further, where applicable, an estimate of the recoverable amount of assets is made 

for possible impairment on an annual basis. In making these estimates, the Foundation uses the technical 

resources available with the Foundation. Any change in the estimates in the future may affect the carrying 

amount of respective item of property and equipment with corresponding effects on the depreciation charge and 

impairment. 

49


7 Prior period errors 

7.1 

In previous year foundation had incorrectly under recorded "interest expense" on General Provident 

Fund balance amounting to Rs. 95,758/- for the year ended 30 June 2011 and consequently under 

amortized the "deferred credit" by the said amount. The amount relating to period prior to year ended 

30 June 2011 has not been restated as the retrospective restatement is considered to be impracticable by 

the management. The comparative figure has been restated in accordance with International Accounting 

Standard 8 (IAS-8). "Accounting Policies, Change in Accounting Estimates and Errors". 

7.1.1 

The effect of retrospective restatement on the income and expenditure account for correction of prior 

period error is tabulated below: 


Rupees Rupees 

Increase in "financial and other charges" - 

Interest on General Provident Fund 107,231 95,758 

Increase in "Amortization of Deferred Credits" 107,231 95,758 

Effect on "surplus for the year" - - 

7.1.2 

The effect of retrospective restatement on the balance sheet for correction of prior period error is as 

below: 


Rupees Rupees 

Increase in "Deferred Liabilities"- Provident 

Fund 

107,231 95,758 

Decrease in "Deferred Credits" 107,231 95,758 

7.2 

7.2.1 

In previous years foundation had under recorded "Profit / markup on bank deposits" amounting to Rs. 

610,518/- relating to the year ended 30 June 2009 and consequently under recorded the "Cash at bank - 

current accounts" by the said amount. After the adjustment, other comparative figures have been 

restated in accordance with para 42 (b) of IAS-8. "Accounting Policies, Change in Accounting 

Estimates and Errors". 

The effect of retrospective restatement is tabulated below: 

2011 2010 2009 

Rupees Rupees Rupees 

Increase in accumulated surplus 610,518 610,518 610,518 

Increase in "Cash at Bank - current accounts" 610,518 610,518 610,518 

50


51


8.2 Intangible Assets 



Computer Software 

Cost 

Balance as at 30 June 417,007 417,007 

Amortization 

Balance as at 1 July (29,889) - 

For the year (137,612) (29,889) 

Balance as at 30 June (167,501) (29,889) 

Net book value as at 30 June 249,506 387,118 

Amortization rate per annum 33% 33% 

8.2.1 Amortization has been allocated as follows 

Administrative expenses 137,612 29,889 

8.3 Depreciation has been allocated as follows: 

Administrative expenses 10,071,592 7,854,840 

8.4 

Freehold land includes land with a book value of Rs. 12 million, located at 152 J-1, Phase II, M.A. 

Johar Town Scheme, Lahore measuring 40 kanals and 19 square feet, which has been leased to Hamza 

Foundation under the PEF program for the promotion of education of special children as approved in 

the meeting of the Foundation's Board of Directors held on 20 March 1996. The terms of the lease 

agreement stipulate the lease to be for a period of thirty years i.e. from 26 September 1996 to 25 

September 2026, at an annual lease rental of Rs. 10,000. Upon expiry of the lease period, the lease can 

be renewed at a one year notice for a further period of twenty years at a time not exceeding 99 years in 

total. The management of the Foundation is of the view that based upon Government DC rates, the 

current value of the land is Rs.192,016,890/-. 

9 Advance for purchase of lands 

These represent long outstanding advances given to Lahore Development Authority (LDA) against purchase of 

land in 1995. 

Advance for plot No. 188-C, Mohlanwal Scheme, Lahore 9.1 1,276,663 1,120,000 

Advance for plot No. 498-B, Block-J, Sabzazar Scheme, 

Lahore 9.2 2,837,500 2,837,500 

Other - 85,000 

4,114,163 4,042,500 

9.1 

This represents advance paid to LDA against plot no. 188-C, Mohlanwal Scheme, Lahore. Over the 

years, the Foundation has made several written requests to LDA for refunding the advance but no 

development has materialized in this regard. The matter was placed before the Finance Committee (FC) 

of the Foundation in its 25th meeting on 25 February 2012. As the matter was under discussion with 

LDA, the Chairman of the FC directed that the management should represent the case to the FC once 

LDA allocates the plot to the Foundation. In compliance with the decision of the FC, the management 

of the Foundation once again pursued the case with LDA. As a result, LDA informed the Foundation 

that after the payment of the advance amount in 1996 against plot 188-C, the said plot measuring 05 

kanals, 01 marla and 13 sq.ft. had been exchanged with plot no. 134-C measuring 05 kanals and 12 

marla. Consequently, LDA also issued a Demand Notice for Rs.156,663/- on account of balance 

amount payable by the Foundation against Plot No.134-C Mohlanwal Scheme, Lahore to get the 

physical possession of the said plot. The amount has been paid on 28 June 2012 and possession was 

handed over to the Foundation on 3 September 2012. 

52


53

54 



55


18.2 Reconciliation of ADB loan with funds available in bank account 



Liability as at 30 June 23,222,208 31,719,417 

Less: 

Profit on Pension TDR's wrongly credited to ADB loan 

principal bank account - (656,647) 

Disbursements to NGOs under development expenditure 13,354,379 16,529,550 

Profit on ADB loan accounts wrongly credited to other bank 

account 2011 

Profit on ADB loan accounts wrongly credited to other bank 

account 2012 

Service Charges recovered during the year from private 

educational institutes & NGOs at 1% of amount advanced 

854,545 854,545 

833,736 - 

(149,048) (90,610) 

14,893,612 16,636,838 

Funds available in designated bank accounts 8,328,596 15,082,579 

Funds available in designated bank accounts include the following: 

Funds available in ADB loan-principal bank account 6,139,969 6,796,225 

Funds available in ADB loan-repayment collection bank 2,188,627 8,286,354 

account 

8,328,596 15,082,579 

19 Deferred Credits 

Grants in aid 19.1 1,280,490,473 4,019,868,838 

19.1 Grants in aid 

Opening balance as at 01 July 4,019,868,838 3,075,188,657 

Add: Received during the year 19.1.1 2,108,189,000 4,500,000,000 

Less: Amortized during the year 19.2 (4,847,567,365) (3,555,319,819) 

1,280,490,473 4,019,868,838 

19.1.1 

This represents grants received from the Government of the Punjab for development, social service, 

education, administrative and other programs. 

19.2 Amortized during the year 

Program expenditure 19.2.1 4,583,440,547 3,370,508,297 

Program related expenditure 141,678,665 87,597,755 

Administrative and general expenses 122,020,593 96,937,403 

Financial charges 427,560 276,364 

4,847,567,365 3,555,319,819 

19.2.1 

Grants are deferred with amount that matches the related expenditure they are intended to compensate. 

19.3 Refer note 7.1 for restatement of comparative figure. 

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PUNJAB 

Education Foundation 

78-B1, M.M. Alam Road, 

Gulberg III, Lahore 

Ph: 042-99268114-17 

LAHORE RAWALPINDI MULTAN 

58, A-2, Ghalib Market, 

Gulberg III, Lahore 

Ph: 042-99263284, 9926388-90 

House No. A2, Street No. 1, 

Officers Colony, Golra Road, 

Rawalpindi Ph: 051-5476562 

25-G, Shah Rukn-e-Alam 

Colony, Multan 

Ph: 061-6780043

PEF Annual Report 2012 - Punjab Education Foundation

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