AUDITOR GENERAL'S REPORT

Transcription

1 Public Disclosure Authorized Public Disclosure Authorized AUDITOR GENERAL'S REPORT Public Disclosure Authorized Public Disclosure Authorized Health Result Based Financing (HRBF) and Design Project Financial Statements For the period July 1, 2015 to June 30, 2016 January 2017 Closeout Audit Yusador S. Gaye, CPA, CGMA Auditor General, R. L.

2 Table of Contents ACRONYMS USED... 2 AUDITOR GENERAL S REPORT... 3 FINANCIAL STATEMENTS... 5 Statement of Receipts and Payments... 5 Statement of Comparison of Budget and Actual Amounts... 6 For the 12 months ended June 30, IDA/ (World Bank) Fund GOODS CONSULTING SERVICES OPERATING COST SUB-GRANTS Note 6. Cash at the end of the year Promoting Accountability of Public Resources

3 ACRONYMS USED Acronyms/Abbreviations/Symbol AFP AG CGMA COSO CPA EPHS FSs GoL HRBF HSSP IAU IBRD IDA IFRs INTOSAI IPSAS ISSAI LMDC MOH P OFM PBF PCO PIM QPR SOE ToR Meaning Audit Focal Person Auditor General Chartered Global Management Accountant Committee of Sponsoring Organization of the Treadway Commission Certified Public Accountant Essential Package Health Services Financial Statements Government of Liberia Health Result Based Financing Health Systems Strengthening Project Internal Audit Unit International Bank for Reconstruction And Development International Development Association Interim Financial Reports International Organization of Supreme Audit Institutions International Public Sector Accounting Standards International Standards of Supreme Audit Institutions Liberia Medical and Dental Council Ministry of Health Office of Financial Management Performance Based Financing Project Coordination Office Project Implementation Manual Quarterly Progress Report Statement of Expenditures Term of Reference 2 Promoting Accountability of Public Resources

4 AUDITOR GENERAL S REPORT January 6, 2017 Dr. Bernice T. Dahn Minister Ministry of Health Republic of Liberia Dear Dr. Dahn: Re: Report of Independent Auditors on the Financial Statements We have audited the accompanying financial statements of the Health Result Based Financing (HRBF) Design Project for the fiscal period ended June 30, These financial statements comprise the Statement of receipts and payments and the Statement of comparison of budget and actual amounts for the fiscal period ended June 30, 2016 and a summary of significant accounting policies and other explanatory information. The audit of the financial statements of the of the Ministry of Health for the fiscal period ended June 30, 2016 was commissioned by the Auditor- General (AG) under the AG s statutory mandate as provided for in Section of the General Auditing Commission s Act of 2014 as well as the Audit Engagement Terms of Reference (ToR). Management s Responsibility for the Financial Statements Management of the of the Ministry of Health is responsible for the preparation and fair presentation of these financial statements in accordance with Cash Basis International Public Sector Accounting Standards (IPSAS) and World Bank Guidelines, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor s Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards of Supreme Audit Institutions (ISSAIs). These standards require that we comply with ethical requirements, plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of 3 Promoting Accountability of Public Resources

5 expressing an opinion on the effectiveness of the entity s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements present fairly, in all material respects, the statement of receipts and payments and the Statement of comparison of budget and actual amounts of Project NO.TF13274LBR for the fiscal period ended June 30, 2016 and a summary of significant accounting policies and other explanatory information of the Health Result Based Financing (HRBF) Design Project of the Ministry of Health for the fiscal period ended June 30, 2016 in accordance with Cash Basis International Public Sector Accounting Standards (IPSAS). Monrovia, Liberia January Promoting Accountability of Public Resources

6 FINANCIAL STATEMENTS Statement of Receipts and Payments For the 12 months ended June 30, 2016 Notes July 1, 2015 June 30, 2016 July 1, 2014 June 30, 2015 Receipts IDA(World Bank) Fund 1 90, ,966 Other Receipts - - Total Receipts 90, ,966 Less Payment: Payment Goods 2 1,125 - Consulting Services 3 52,971 19,600 Operating Cost 4 2,503 11,954 Sub-Grants 5 131,393 14,217 Total payments 187,992 45,771 Decrease/ Increase in cash (97,122) 163,195 Cash at the begging of the year 166,495 3,300 Cash at the end of the year 6 69, ,495 5 Promoting Accountability of Public Resources

7 Statement of Comparison of Budget and Actual Amounts for the 12 months ended June 30, 2016(7) Original Budget Final Budget Actual Amounts Variance Percenta ge Variance Cash Inflows (%) Authorized Allocations/Receipts 406, ,336 90, , Total Receipts 406, ,336 90, ,466 - Cash Outflows Civil Works Goods 1,800 1,800 1, Consulting Services 75,927 75,927 52,971 22, Training 53,460 53,460-53, Operating Costs 19,136 19,136 2,503 16, Sub-Grants 256, , , , Total Payments 406, , , ,343 Net Cash Flows - - (97,122) 6 Promoting Accountability of Public Resources

8 NOTES TO THE FINANCIAL STATEMENTS General Information and Accounting Policies: I. The Reporting Entity and Principal address Ministry of Health Congo Town, Monrovia Liberia II. Background of the Project On January 23, 2013, the Republic of Liberia and the International Bank for Reconstruction and Development/International Development Association ( World Bank ) entered into a Grant Agreement for the financing of the under the Ministry of Health. The development objective of the Health Result Based Financing (HRBF) for Liberia is to improve the quality of maternal health, Child health, and infectious disease services in selected secondary-level health facilities. During the Preparatory stage, the Project consisted of three main components as outline below: The first component deals with strengthening the institutional capacity to improve the quality of selected health interventions at performance-based Financing (PBF) health facilities. The second component is about improving health workers competencies to address key Health-related concerns at selected health facilities. The third component deals with project management. This component will support the operational capacity of the Ministry of health (MOH) to effectively manage the project. On the basis of the above, the International Development Association ( World Bank ) provided the initial grant of 850, to fund the preparation of a full-scale Health System Strengthening Project (HSSP) to address various Secondary level healthcare interventions. 7 Promoting Accountability of Public Resources

9 III. Significant Accounting Policies The financial statements have been prepared in accordance with the Cash Basis International Public Sector Accounting Standards (IPSAS). This implies that all expenditures are expensed whether they are revenue or capital in nature and income is recognized when funds are received from the IDA/ADB (World Bank). IV. Reporting Currency Financial reports have been presented in United States Dollars. Transactions in other currencies are translated into United States Dollars and recorded at the rate of exchange ruling at the date of the transaction(s). Balances in other currencies are translated into United States Dollars at the rate of exchange prevailing on the reporting date. V. Reporting Period The reporting period for these financial statements is the 12 months ended June 30, (1 July 2015 to 30 June 2016). 8 Promoting Accountability of Public Resources

10 Date 1. IDA/ (World Bank) Fund July 1, 2015 June 30, 2016 July 1, 2014 June 30, 2015 July 8, ,324 January 1, ,382 April 30, ,260 July 8, ,524 - November 16, ,346 - Total 90, ,966 9 Promoting Accountability of Public Resources

11 2. GOODS July 1, 2015 June 30, 2016 July 1, 2014 June 30, 2015 Management Costs: Furniture & Fixtures 1,125 - TOTAL 1, Promoting Accountability of Public Resources

12 3. CONSULTING SERVICES July 1, 2015 June 30, 2016 July 1, 2014 June 30, 2015 Project Preparation: Foreign Consultant 34,939 - Foreign Travel DSA 8,262 - Foreign Travel-means of travel 6,046 - Residential Allowance- Foreign Consultant 1,500 2,000 Taxes and Duties 2,224 - Local Consultant - 17,600 TOTAL 52,971 19, Promoting Accountability of Public Resources

13 4. OPERATING COST Project Preparation: July 1, 2015 June 30, 2016 July 1, 2014 June 30, 2015 Honorarium - 2,000 Domestic Travel - 5,367 Repairs & Maintenance-Civil Work Telecommunication & Internet Vehicle Fuel & Maintenance 252 1,088 Computer & ITC Services Stationery & Printing Service - - Meeting Refreshment Vehicle Insurance 1,851 2,462 Bank Charges TOTAL 2,503 11, Promoting Accountability of Public Resources

14 5. SUB-GRANTS July 1, 2015 June 30, 2016 July 1, 2014 June 30, 2015 Hospital Performance Bonus: Staff Performance Bonus-Redemption Hospital 56,043 - Hosp. Property Maintenance Redemption 21,523 - Drug and Medical Consumables 34,565 - Food and Catering services Bank Charges Redemption Management Costs: Honorarium LMDC 6, Stationery & Printing Services- LMDC 7,205 Professional Service LMDC 4,350 Bank Charges LMDC , TOTAL 131,393 14, Promoting Accountability of Public Resources

15 Note 6. Cash at the end of the year This is a closeout audit of the of the Ministry of Health. All the necessary closeout procedures were performed and the uncommitted fund balance of 69,373 on the bank statement has been subsequently transferred to the World Bank. 7. Variance analysis The 77.64% variance represents budgeted balance of cash receipts which was not expended due to the slow pace of the project activities. The % variance associated with goods is attributed to the transfer of procurement of medical equipment to EERP through the UN Agencies. The % variance associated with consulting services is due to the fact that most of the needed faculty members under the PGMRP are not yet in place. The 100% variance for training is attributed to the resignation of the PBF Consultant who should have provided training for the counties hospitals staff for the implementation of the PBF. The 86.92% variance for operating cost is attributed to the slow pace of the project activities due to the restructuring process as well as the delay in rolling up of the PBF activities. The 48.68% variance for sub-grand is due to the delay in rolling up the PBF activities to selected county hospitals. 14 Promoting Accountability of Public Resources