- DEVELOPMENT (MLGRD)~

Transcription

1 ~MINISTRY OF LOCAL GOVERNMENT & RURAL!11l Public Disclosure Authorized - DEVELOPMENT (MLGRD)~ GHANA SOCIAL OPPORTUNITIES PROJECT (GSOP) IDA CREDIT NO GH Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized KW AME ASANTE AND ASSOCIATES (Chartered Accountants) P. 0. Box TF 58, Trade Fair Centre, Accra Tel: I Fax: kaaghana@gmail.com kasante2005@gmail.com JUNE2017

2 ~,,MINISTRY II OF LOCAL GOVERNMENT & RURAL[ DEVELOPMENT (MLGRD) GHANA SOCIAL OPPORTUNITIES PROJECT (GSOP) IDA CREDIT NO GH Kw AME ASANTE AND ASSOCIATES (Chartered Accountants) P. 0. Box TF 58, Trade Fair Centre, Accra Tel: I Fax: kaaghana@gmail.com kasante2005@gmail.com JUNE 2017

3 MINISTRY OF LOCAL GOVERNMENT AND RURAL DEVELOPMENT (MLGRD) GHANA SOCIAL OPPORTUNITIES PROJECT (GSOP) - IDA CREDIT No GH FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 5 TDECEMBER2016.,,1, '/,IV % I I/ I/.,1,1,:. c:i/ Yl/l,:I I, #,,,l/l/#'a TABLE OF CONTENTS CORPORATE INFORMATION INDEPENDENT AUDITORS REPORT TO THE MINISTRY OF LOCAL GOVERNMENT AND RURAL DEVELOPMENT (MLRGD)... 2 STATEMENT OF SOURCES AND USES OF FUNDS... 4 NOTES TO THE STATEMENT OF SOURCES AND USES OF FUNDS PROJECT COST SUMMARY... 6 ANALYSIS OF EXPENDITURE BY PROJECT ACTIVITY... 7 STATEMENT OF FINANCIAL POSITION... 8 NOTES TO THE FINANCIAL STATEMENTS... 9 INDEPENDENT AUDITORS REPORT TO THE MINISTRY OF LOCAL GOVERNMENT AND RURAL DEVELOPMENT (MLRGD) DESIGNATED ACCOUNT STATEMENT INDEPENDENT AUDITORS REPORT TO THE MINISTRY OF LOCAL GOVERNMENT AND RURAL DEVELOPMENT (MLRGD) STATEMENT OF EXPENDITURE FOR THE YEAR ENDED 31sr DECEMBER

4 MINISTRY OF LOCAL GOVERNMENT AND RURAL DEVELOPMENT (MLGRD) GHANA SOCIAL OPPORTUNITIES PROJECT (GSOP)-IDA CREDIT No GH FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 8 TDECEMBER2016 CORPORATE INFORMATION National Coordination Office: Robert E. Austin Henry A. Bosompem - National Coordinator - Financial Controller George Kwadwo Osei Ababio - Chief Infrastructure Engineer William Y. Amuesi Kodwiw - Monitoring & Evaluation Desmond Duametu - National Capacity Building Specialist Registered Office: Postal Address: External Auditors Bankers: Ghana Social Opportunities Project National Coordination Office Ministry of Local Government & Rural Development P. 0. Box CT 3742 Cantonments - Accra K wame Asante & Associates ( Chartered Accountants) No. C638/ 3, Anyemi Kpakpa Street Asylum Down P. 0. Box TF 58, Trade Fair Centre Accra GCB Bank Limited High Street Branch P. 0. Box 2971 Accra Page 1

5 l(wame ASANTE & ASSOCIATES No. C51h Crescent, House Number C638/3 Asylum Down, P. 0. Box 58, Trade Fair Centre Accra - Ghana Telephone Facsimile kaaghana@gmail.com kasante2005@gmail.com INDEPENDENT AUDITORS REPORT TO THE MINISTRY OF LOCAL GOVERNMENT AND RURAL DEVELOPMENT (MLRGD) Report on the Financial Statements We have audited the accompanying financial statements of Ghana Social Opportunities Project (GSOP) for the year ended 3!5 1 December 2016 as set out on pages 4 to 15. These financial statements comprise the Statement of Financial Position as at 3!5 1 December 2016, the Project Cost Summary, Statement of Sources and Uses of Funds and a summary of significant Accounting Policies and other explanatory notes. Project Management's responsibility for the financial statements The National Coordinating Office (NCO) of GSOP under the Ministry of Local Government & Rural Development (MLRGD) is responsible for the preparation and fair presentation of these financial statements in accordance with World Bank Financial Reporting Guidelines. 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. Auditors' responsibility Our responsibility is to express an independent opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform our audit to obtain reasonable assurance whether the financial statements are free from material misstatement. An audit involves performing proce.dures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors' judgement, including the assessment of the risks of material misstatements, whether due to fraud or error. Page 2

6 MINISTRY OF LOCAL GOVERNMENT AND RURAL DEVELOPMENT {MLGRD) GHANA SOCIAL OPPORTUNITIES PROJECT {GSOP) - IDA CREDIT No GH ;,: I I,I, ~ #, 11'.'I-~~ In making those risk assessments, the auditor considers internal controls 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 expressing an opinion on the effectiveness of the project's internal controls. 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 the basis for our audit opinion. Opinion In our opinion, proper books of account have been kept and the accompanying financial statements, which are in agreement therewith, give a true and fair view of the state of the Project's Financial Position as at December 2016 and of its Cost Summary, Sources and Uses of Funds for the year then ended in accordance with World Bank Financial Reporting Guidelines and are in compliance with Credit Agreement Number 4735-GH and accounting policies. Signature:.. l{)w""'m! Managing Partner: RICHARD KW AME ASANTE - ICAG IP I 1117 Name of Firm: KW AME ASANTE & ASSOCIATES - ICAG/F /2017 /056 CHARTERED ACCOUNTANTS ACCRA Date: ::2.-?-( -t+- :f LUJ_'z-. :)o '} Page 3

7 MINISTRY OF LOCAL GOVERNMENT AND RURAL DEVELOPMENT (MLGRD) GHANA SOCIAL OPPORTUNITIES PROJECT (GSOP)- IDA CREDIT No GH I I/#,I ~ Jl'/l,l/,I/VJl'/1/# #'/ l/1,'i /I/. /#/I/ I/.,:-I Z.l/ll/l'I' /I # #/I'#/.,.1.l:.ttr':#1/1 STATEMENT OF SOURCES AND USES OF FUNDS FOR THE YEAR ENDED 31 8 TDECEMBER2016 SOURCES 2016 IDA Current Year Cumulative Cumulative Funds received during the year (Page 5) 7,914,760 7,914,760 88,067,295 80,152,535 88,067,295 80,152,535 USES Category Goods, Consultants' Services & Training 1 751,374 Civil Works under Part B 2 5,809,417 Cash Transfers under Part C 3c 5,754,310 12,315,101 23,400,894 22,649,520 46,764,218 40,954,801 18,254,310 12,500,000 88,419,422 76,104,321 Balance of Project Funds (4,400,341) (352,127) 4,048,214 Page 4

8 MINISTRY OF LOCAL GOVERNMENT AND RURAL DEVELOPMENT (MLGRD) GHANA SOCIAL OPPORTUNITIES PROJECT (GSOP) - IDA CREDIT No GH FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 5 T DECEMBER2016 I I- ~ # I, # I# ~# I" YI, l,1,#~#16 NOTES TO THE STATEMENT OF SOURCES AND USES OF FUNDS FOR THE YEAR ENDED 31 5 TDECEMBER Withdrawal Application Description Number S.18 Interim unaudited financial statement 0 S.21 Interim unaudited financial statement 0 S.25 Interim unaudited financial statement 2,160,450 S.26 Reimbursement of LEAP 5,754,310 7,914, ,030, ,030,907 Reconciliation of Project Funds Balance Notes As at 315t December 2016 Balance on Designated Account, Cash & Bank balances 8 0 Advances to District not yet retired 6 0 Project advance at NCO, MoFEP, RCOs & GHIPSS ,434,234 2,489, ,601 4,362,190 Less: Payables & Other Liabilities 9 0 Other Incomes 4 (303,392) Exchange Loss/ (Gain) 4 (48,735) (352,127) 6,252 (293,314) (26,914) 4,048,214 Balance of Project Funds as per Statement of Sources and Uses of Funds (352,127) 4,048,214 Page 5

9 MINISTRY OF LOCAL GOVERNMENT AND RURAL DEVELOPMENT (MLGRD) GHANA SOCIAL OPPORTUNITIES PROJECT (GSOP)- IDA CREDIT No GH '- I I II PROJECT COST SUMMARY FOR THE YEAR ENDED 31 st DECEMBER 2016 Category IDA Current Cumulative Cumulative Year Expenditure Expenditure Expenditure 1 Goods, Consultants' Services & Training 751,374 23,400,894 22,649,520 2 Civil Works under Part B 5,809,417 46,764,218 40,954,801 3c Cash Transfer under Part C 5,754,310 18,254,310 12,500,000 Total 12,315,101 88,419,422 76,104,321 _... _ _ Page 6

10 MINISTRY OF LOCAL GOVERNMENT AND RURAL DEVELOPMENT {MLGRD) GHANA SOCIAL OPPORTUNITIES PROJECT (GSOP)- IDA CREDIT No GH ANALYSIS OF EXPENDITURE BY PROJECT ACTIVITY FOR THE YEAR ENDED 31 5 TDECEMBER2016 Project Activity Component 1 Goods, Consultants' Services & Training National Social Protection Strategy 6,454 Component2 Labour Intensive Public Works (LIPW) 0 Component3 Livelihood Empowerment Against Poverty 0 (LEAP) Component4 Capacity Building 324,975 Component5 Project Management & Coordination 419, Total 751,374 Civil W orlcs underpartb Cash Transfer under Part C 0 0 5,809, ,809,417 5,754,310 Current Year Total Expenditure Cumulative Cumulative Expenditure Expenditure 6, , ,187 5,809,417 46,764,218 40,954,801 5,754,310 18,254,310 12,500, ,975 7,188,886 6,863, ,945 15,445,367 15,025,422 12,315,101 88,419,422 76,104,321 Page 7

11 MINISTRY OF LOCAL GOVERNMENT AND RURAL DEVELOPMENT (MLGRD) GHANA SOCIAL OPPORTUNITIES PROJECT (GSOP) - IDA CREDIT No GH "',:.JI ",,r,,, #/I/. :/I,. I: #,Ill/#~ STATEMENT OF FINANCIAL POSITION AS AT 31 ST DECEMBER 2016 Project Expenditure Investment Recurrent Project Expenditure Property, Plant & Equipment Current Assets District Advances Receivables - Project Advances Cash & Bank Balances Current Liabilities Payables & Other Liabilities Net Current Assets Notes ,974,054 61,078,899 13,056,246 12,671,646 2,036,995 2,033,548 88,067,295 75,784, ,489, , ,434, ,362,190 0 (6,252) 0 4,368,442 Net Assets 88,067,295 80,152,535 Represented By: International Development Association (IDA) Loan 10 88,067,295 80,152,535 The financial statement~ o~ Pages ;-to 14 : ere approved on behalf ~f the Pro~ect Management on ~ -~ ---J){~---~ and signed on its behalfby: National Coordinator GSOP Page 8 I

12 ,I/,tJ/11'.,I/ /1/,,.,-,,. '/I/I/I/. Y. #/#~I,, I/. W/1/I Y. / VI, >'I,.f;,. '/#lh Vl#I/ I 1/'-,'l#,~'l/:l:lll'l,7,W,'l'I.,. MINISTRY OF LOCAL GOVERNMENT AND RURAL DEVELOPMENT (MLGRD) GHANA SOCIAL OPPORTUNITIES PROJECT (GSOP) - IDA CREDIT No GH I/I,,/I,,, vl,,#/1/i/i'/. #/,I/VI/# 7, % Vl/1/#h I/./IV, % ~ I, I/#/#,,#,' VI ~l/l/#'#1/1:. VI',#/. 'I/I #/l,l/l/l/l/,1/.,. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 5 TDECEMBER Ghana Social Opportunities Project (GSOP) (a) Financing Agreement A Credit Agreement Number 4735-GH was signed between the Government of Ghana and the International Development Association (IDA) of the World Bank on gm September 2011 for a credit in an amount up to the equivalent of fifty-eight million four hundred thousand Special Drawing Rights (SDR58,400,000) to assist in financing the Ghana Social Opportunities Project (GSOP). The total estimated cost for Ghana Social Opportunities Project amounts to million. International Development Association (ID A) total credit is million while the Government of Ghana counterpart funding is 0.50 million. (b) Project Description The objectives of the project are: (i) (ii) (iii) (iv) To improve targeting in social protection spending; Increase access to conditional cash transfers nationwide; Increase access to employment and cash-earning opportunities for the rural poor during the agricultural off-season, and; Improve economic and social infrastructure in target districts. The Project consists of the following five (5) components: Component One: Rationalize National Social Protection Policy Component One would provide support to the Government to help redirect its social protection expenditures to the most effective areas and reduce those in less effective activities through the provision of technical assistance, studies and training. Component Two: Labour Intensive Public Works (LIPW) This component involves the development and implementation of quickresponse mechanisms against seasonal poverty, external shocks, including floods and droughts, during a crisis and maximizing local employment by providing short-term paid employment opportunities to selected rural poor households to finance cost oflipws, including: Page 9

13 MINISTRY OF LOCAL GOVERNMENT AND RURAL DEVELOPMENT (MLGRD) GHANA SOCIAL OPPORTUNITIES PROJECT (GSOP)- IDA CREDIT NO GH FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 5 TDECEMBER2016 #/. /. '/l/1/,ivji l/l/#1,:,tr,, ;,,IJVI/I/.',l/l/l/,ll'/1#,I % '/I/I/,#/I/I/I/I/. '/II/.IIVl/l/1/I/I/I/. '/I/ /. l/1,#/##/,ii (i) (ii) (iii) Rehabilitation and maintenance of rural feeder and access roads; Rehabilitation of small dams and related public infrastructure; and Other works, including, construction of schools and clinics, dugouts, soil and land conservation works for catchment protection and tree planting on communal lands Component Three: Livelihood Empowerment Against Poverty (LEAP) The objective of this component is to support the government's efforts to carry out the full rollout of LEAP programme by: (i) (ii) (iii) Strengthening its management and administration; Providing technical assistance to improve targeting; and Providing cash transfers to beneficiaries under LEAP. Component Four: Capacity Building This component is to strengthen capacity at the national and local levels to implement the National Social Protection Strategy (NSPS) in selected districts, with the view of enabling a gradual scaling-up and targeting at the national level by: (i) (ii) Establishing a LIPW supportive policy and institutional framework; Building capacity to support LIPW implementation of: rehabilitation and maintenance of roads; rehabilitation of small dams and water storage infrastructure; other works, including construction of schools, clinics, dugouts, soil and land conservation works for catchment protection and tree planting on communal lands; (iii) Building capacity: to support implementation of LEAP for disaster risk management; and at the district and regional levels; and (iv) Other activities and pilot programmes that could become necessary during implementation to support the overall objective of strengthening of safety nets and providing safety ladders. Component Five: Project Management and Coordination The institutions, structures, and capacities of the Government of Ghana serve as the foundation for project management and coordination. This component provides technical assistance, vehicles, equipment and other operational support to the government to carry out the coordination, administration, monitoring, evaluation and audit of the Project. Page 10

14 .I, I/ JI /I.-~#/,IV "/1..,Z, /"'/#,,: 'Yl/,,111'/,tll'/I/JT/l/,ill/l'./.il'-'l/l/.tr/l.W'l-'l#l:l-l/.tll MINISTRY OF LOCAL GOVERNMENT AND RURAL DEVELOPMENT (MLGRD) GHANA SOCIAL OPPORTUNITIES PROJECT (GSOP)- IDA CREDIT No GH FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 st DECEl\IBER r,:,: #,,,r, '/I/. ;:,. J'/.,-,,1V#I#/. "#..' % 'I I/I/II/ '/# '/,ill/vi/. #/. 'YI/. 1##1:1',~ (c) Repayment of Credit The Government of Ghana shall repay the principal amount of IDA Credit by semi-annual installments payable on June 1 and December 1, in each year, commencing June 1, 2020 and ending December 1, The principal amount of the credit repayable from June 1, 2020 to December 1, 2029 shall be 1.25% of the principal amount withdrawn, and thereafter, each installment shall be 2.5% of the principal withdrawn until the last installment is paid on December 1, (d) End of Project In accordance with the Project Appraisal Document the project implementation shall start in June 1, 2010 and end on December 31, However, the expected effectiveness date was September 1, 2010 and expected closing date is June 30, Accounting Policies The following are the significant accounting policies adopted in the preparation of these financial statements. (a) Basis of Preparation (i) Statement of Compliance The financial statements have been prepared in accordance with International Financial Reporting Standard (IFRS) and its interpretations adopted by the International Accounting Standards Board (IASB). (ii) Basis of Measurement The financial statements have been prepared under the historical cost convention, as modified by the revaluation of investment property, financial assets and financial liabilities at fair value. (iii) Use of Estimate and Judgement The preparation of financial statements in conformity with IFRS requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. I Page 11

15 - MINISTRY OF LOCAL GOVERNMENT AND RURAL DEVELOPMENT (MLGRD) GHANA SOCIAL OPPORTUNITIES PROJECT (GSOP)- IDA CREDIT No GH FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 st DECE:M~BER 2016.,,,, l/1/,1,,,;,. "',, I, " " The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects both current and future periods. (b) Presentation of Financial Statements (i) Functional and Presentation Currencies The financial statements are presented in United States Dollars () which is the reporting currency for the financial statements. (ii) Transactions and Balances Transactions in foreign currencies are converted at the rate ruling on the day the transaction took place. Current assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at the balance sheet date and property, plant and equipment translated at the rate of exchange ruling at the time of acquisition. Gains and losses arising on foreign currency transactions are credited to or charged against recurrent expenditure in the period in which they anse. (c) Property, Plant and Equipment (i) Recognition and Measurement Property, plant and equipment represents the expenditure incurred mainly in acquiring office equipment and motor vehicles for use by the National and Regional Coordinating Offices. This is measured at the actual contracted cost of purchase. Cost includes expenditures that are directly attributable to bringing the asset to the location and working condition necessary for it to be capable of operating in the manner intended by management. Purchased software that is integral to the functionality of the related equipment is capitalized as part of that equipment. (ii) Subsequent Costs Subsequent costs are included in the asset's carrying amount or recognized as a separate asset, as appropriate, when it is probable that the future economic benefits associated with the item will flow to the Project and the cost of the item can be measured reliably. All other repairs and maintenance expenditures are charged to the statement of sources and uses of funds during the financial period in which they are incurred. Page 12

16 MINISTRY OF LOCAL GOVERNMENT AND RURAL DEVELOPMENT (MLGRD) GHANA SOCIAL OPPORTUNITIES PROJECT (GSOP) - IDA CREDIT No GH '/1- I/ '/I/. #,##,# (iii) ( d) Investment Depreciation No depreciation is charged in the financial statements. The expenditure incurred on the target groups' and beneficiaries' project activities other than the coordinating units' recurrent expenditure is capitalized as investment. This comprises expenditure incurred on Institutional Strengthening and Capacity Building. National Social Protection Strategy, Labour Intensive Public Works, Livelihood Empowerment Against Poverty Programme and Project Management and Coordination. (e) Recurrent Project Expenditure The administrative expenditure incurred by the National Coordinating Office in Accra and the Regional Coordinating Offices are classified as recurrent project expenditure. Recurrent project expenditure comprises salaries and wages of project staff, occupancy cost, motor vehicle running and maintenance expenses, post and telecommunications, advertisement, printing and stationery expenses. (f) Income 3. Investments Income is recognized on cash basis and credited directly to the respective donors account. Goods, Consultants' Services & Training Civil Works Under Part B Cash Transfer Under Part C - 1st Schedule - 2 d Schedule - 3rd Schedule - 4th Schedule ,955,526 46,764,218 2,500,000 5,000,000 5,000,000 5,754,310 72,974, ,624,098 40,954,801 2,500,000 5,000,000 5,000, ,078, Recurrent Project Expenditure Goods, Consultants' Services & Training Exchange Equalization Other Income ,408,373 (48,735) (303,392) 13,056, ,991,874 (26,914) (293,314) 12,671,646 I Page 13

17 MINISTRY OF LOCAL GOVERNMENT AND RURAL DEVELOPMENT (MLGRD) GHANA SOCIAL OPPORTUNITIES PROJECT (GSOP) - IDA CREDIT No GH 5. I II Property, Plant and Equipment,~ Office Buildings 7,990 7,990 Motor Vehicles 1,708,987 1,708,987 Furniture, Fittings & Fixtures 26,029 24,770 Office Equipment 293, ,801 2,036,995 2,033, District Advances These represent funds advanced directly from National Coordinating Office (NCO) to the districts for project activities that had not been retired by the year end. The funds have been classified according to the Regional Coordinating Offices (RCOs) that supervise sub-projects in the respective districts Tamale Regional Coordinating Office/ Districts 0 347,311 Wa Regional Coordinating Office/ Districts 0 687,219 Bolga Regional Coordinating Office/ Districts 0 832,054 Kumasi Regional Coordinating Office/ Districts 0 335,068 Accra Regional Coordinating Office/ Districts 0 287, ,489, Receivables - Project Advances This represents project advances at NCO, RCOs and Districts as follows : NCO - Project Advances 0 (285) NCO - E-payment advances to GHIPSS 0 406,426 Accra RCO - Project Advances 0 (24) Bolga RCO - Project Advances 0 28,912 Tamale RCO - Project Advances 0 (18,753) Wa RCO - Project Advances 0 22, ,601 Page 14

18 MINISTRY OF LOCAL GOVERNMENT AND RURAL DEVELOPMENT (MLGRD) GHANA SOCIAL OPPORTUNITIES PROJECT (GSOP) - IDA CREDIT No GH 8. Cash and Bank Balances Petty Cash Bank At Balance at Total Cash & Total Cash 31/12/16 31/12/16 Bank &Bank NCO Designated Account 0 1,340,328 NCO Cedi Account 0 56,978 NCO Petty Cash RCO Tamale Cedi Account 0 13 RCO Tamale Petty Cash 0 8 RCO Wa Cedi Account 0 2,622 RCO Wa Petty Cash RCO Bolga Cedi Account 0 30,551 RCO Bolga Petty Cash RCO Kumasi Cedi Account 0 (567) RCO Kumasi Petty Cash 0 95 RCO Accra Cedi Account 0 2,344 RCO Accra Petty Cash ,434, Payables and Other Liabilities PAYE 0 (7,476) Withholding Tax Audit Fees 0 0 Accounts Payable - Tamale RCO (6,252) 10. International Development Association (IDA) Loan Current Year Cumulative Cumulative IDA Credit 2,160,450 69,812,985 67,652,535 IDA Credit - Livelihood Empowerment 5,754,310 18,254,310 12,500,000 Against Poverty 7,914,760 88,067,295 80,152,535 Page 15

19 l(wame ASANTE & ASSOCIAT"ES No. C51h Crescent, House Number C638/3 Asylum Down, P. 0. Box 58, Trade Fair Centre Accra - Ghana Telephone Facsimile kaaghana@gmail.com kasante2005@qmail.com INDEPENDENT AUDITORS REPORT TO THE MINISTRY OF LOCAL GOVERNMENT AND RURAL DEVELOPMENT (MLRGD) Report on the Designated Account We have audited the Designated Account of Ghana Social Opportunities Project (GSOP) for the year ended 31 st December 2016 as set out on page 18, established under the provisions of the Credit Agreement No GH. Project Management's responsibility for the financial statements The National Coordinating Office (NCO) of GSOP under the Ministry of Local Government & Rural Development (MLRGD) is responsible for the preparation and fair presentation of this Designated Account Statement in accordance with World Bank Financial Reporting Guidelines. This responsibility includes: designing, implementing and maintaining internal controls relevant to the preparation and fair presentation of Designated Account Statement 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. Auditors' responsibility Our responsibility is to express an independent opinion on the Designated Account Statement based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform our audit to obtain reasonable assurance 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 Designated Account. The procedures selected depend on the auditors' judgement, including the assessment of the risks of material misstatements, whether due to fraud or error. Page 16

20 MINISTRY OF LOCAL GOVERNMENT AND RURAL DEVELOPMENT (MLGRD) GHANA SOCIAL OPPORTUNITIES PROJECT (GSOP)- IDA CREDIT No GH In making those risk assessments, the auditor considers internal controls relevant to the entity's preparation and fair presentation of the Designated Account Statement 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 project's internal controls. 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 Designated Account Statement. We believe that the audit evidence we have obtained is sufficient and appropriate to provide the basis for our audit opinion. Opinion In our opinion, Ghana Social Opportunities Project (GSOP) funds received from International Development Association (IDA) through the Designated Account have been properly accounted for and withdrawals were made for the purposes of the project in compliance with the provisions of the Credit Agreement Number 4735-GH. Signature: ~ -~ Managing Partner: RICHARD KW AME ASANTE - ICAG /Pl 117 Name of Firm: KW AME ASANTE & ASSOCIATES - ICAG/F /2017 /056 CHARTERED ACCOUNTANTS ACCRA Date: ~~-~:~-~ ---~J? I Page 17

21 ,..,,,,,, Id/I l/#1/l,l'/z#'l!l.#-'#l,i,,/.#/#/.ta MINISTRY OF LOCAL GOVERNMENT AND RURAL DEVELOPMENT (MLGRD) GHANA SOCIAL OPPORTUNITIES PROJECT (GSOP)- IDA CREDIT No GH I '/I,,. '/l,'1,#/.,,1/,:,#~:l'/i/i/i/.ix#,'i/j/ivl/,ixi,,. Y#/11/l/,I/. Yl/~IVl/l#/l/l/.ilVl/#Xl/l/,,,,,l/l/l/l/l/l/l/l/l/l/l/l/l/1/,,t/r, '/#l/1,,l/,lllfvl/l I/I#/.. DESIGNATED ACCOUNT STATEMENT FOR THE YEAR ENDED 31sTDECEMBER2016 Available Funds During the Year Opening Balances as at 1st January, 2016 Add: Remittances during the year (Page 21) Interest Income Refund from ILO Total Available Funds ,340,331 4,207,753 2,160,449 10,030, ,777 3,500,817 14,250,040 Designated Account closing balance as at 31 st December 2016 Withdrawals (See Note below) 0 1,340,331 3,500,817 12,909,709 Note: Withdrawals represent funds transferred to NCO, RCOs and the Districts and are analyzed as follows: (a) (b) (c) Disbursement of Funds to NCO, RCOs and Districts (i) National Coordinating Office (NCO) (ii) Regional Coordinating Offices (RCOs) (iii) District Assemblies (DAs) (iv) GhIPSS Disbursement of Funds by Category (i) Category 1 (ii) Category 2 Disbursement of Funds by Project Component (i) Component 1: National Social Protection Strategy (ii) Component 2: Labour Intensive Works (iii) Component 3: Capacity Building (iv) Component 4: Project Management Support 399,065 3,431,926 78, ,796 1,416,649 4,408,074 1,606,637 4,672,913 3,500,817 12,909, ,368 3,848,218 3,027,449 9,061,491 3,500,817 12,909, ,750 3,027,449 9,061, ,899 1,495, ,469 2,346,230 3,500,817 12,909,709 The above De~ vPf.f... d-:-:.y.d.. ated Account Statement was approved by the Project Management on ( and signed on its behalf by: National Coordinator GSOP mancial Controller GSOP I Page 18

22 l(wame ASANTE & ASSOCIATES No. C51h Crescent, House Number C638/3 Asylum Down, P. 0. Box 58, Trade Fair Centre Accra - Ghana Telephone Facsimile kaaghana@gmail.com kasante2005@gmail.com INDEPENDENT AUDITORS REPORT TO THE MINISTRY OF LOCAL GOVERNMENT AND RURAL DEVELOPMENT (MLRGD) Report on the Statement of Expenditure/Interim Unaudited Financial Statement During the course of our audit of the project accounts under Credit Agreement No GH for the year ended 3pt December 2016, we examined the Statement of Expenditure/Interim Unaudited Financial Statement submitted to the World Bank during the period in support of applications for reimbursement from the credit, pursuant to Credit Agreement No GH. Project Management's responsibility for the Statement of Expenditure The National Coordinating Office (NCO) of GSOP under the Ministry of Local Government & Rural Development (MLRGD) is responsible for the preparation and fair presentation of the Statement of Expenditure/Interim Unaudited Financial Statement in accordance with World Bank Financial Reporting Guidelines. This responsibility includes: designing, implementing and maintaining internal controls relevant to the preparation and fair presentation of the Statement of Expenditure/ Interim Unaudited Financial Statement 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. Auditors' responsibility Our responsibility is to express an independent opm10n on the Statement of Expenditure/ Interim Unaudited Financial Statement based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform our audit to obtain reasonable assurance that the Statement of Expenditure/Interim Unaudited Financial Statement is free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the Statement of Expenditure/Interim Unaudited Financial Statement. The procedures selected depend on the auditors' judgement, including the assessment of the risks of material misstatements of the Statement of Expenditure/Interim Unaudited Financial Statement, whether due to fraud or error. I Page 19

23 MINISTRY OF LOCAL GOVERNMENT AND RURAL DEVELOPMENT {MLGRD) GHANA SOCIAL OPPORTUNITIES PROJECT {GSOP)- IDA CREDIT No GH In making those risk assessments, the auditor considers internal controls relevant to the entity's preparation and fair presentation of the Statement of Expenditure/Interim Unaudited Financial Statement 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 project's internal controls. 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 Statement of Expenditure/ Interim Unaudited Financial Statement. We believe that the audit evidence we have obtained is sufficient and appropriate to provide the basis for our audit opinion. Opinion In our opinion, Statement of Expenditure/Interim Unaudited Financial Statement submitted, summarized on Page 21, and the supporting schedules and information submitted with them, together with the internal controls and procedures involved in their preparation, can be fairly relied on to support the applications for reimbursement in accordance with the requirement pursuant to the Credit Agreement Number 4735-GH. Signature:... Lw Managing Partner: RICHARD KWAME ASANTE-ICAG/P/1117 Name of Firm: KW AME ASANTE & ASSOCIATES - ICAG /F /2017 /056 CHARTERED ACCOUNTANTS ACCRA Date: ~(.r-f~. d ~~.?o '' Page 20

24 MINISTRY OF LOCAL GOVERNMENT AND RURAL DEVELOPMENT (MLGRD) GHANA SOCIAL OPPORTUNITIES PROJECT (GSOP)- IDA CREDIT No GH STATEMENT OF EXPENDITURE FOR THE YEAR ENDED 31 st DECEMBER 2016 International Development Agency (IDA) Expenditure Advance to 4th Schedule Documented Designated LEAP per Interim Account per Reimbursement Unaudited Interim Withdrawal Financial Unaudited Application Statement Financial Number Statement S.25 2,160, S.26 5,754, S.27 2,407, S.28 1,055, S.29 3, S.30 1,646, S , Total 5,659, ,160, ,754, T~tatement of Expenditure was approved by the Project Management on 1,~ _ J._\d cz!_( and signed on its behalfby: National Coordinator GSOP I Page 21