The Federal Democratic Republic of Ethiopia Audit Services Corporation

Transcription

1 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized M-1-1 9"CaDo MA"?AM-+ Wc 67i) The Federal Democratic Republic of Ethiopia Audit Services Corporation NDEPENDENT AUDTOR'S REPORT ON THE FNANCAL STATEMENTS OF THE FEDERAL DEMOCRATC REPUBLC OF ETHOPA MNSTRY OF FNANCE AND ECONOMC COOPERATON PRODUCTVE SAFETY NET PROGRAMME PHASE- V (PSNP- V) We have audited the accompanying financial statements of Productive Safety Net Programme Phase-V (PSNP-V) of the Federal Democratic Republic of Ethiopia, Ministry of Finance and Economic Cooperation, which comprise the balance sheet as at 7 July 2016, and the statement of sources and uses of funds for the year ended to 7 July 2016 and a summary of significant accounting policies and other explanatory information. Responsibility for the Financial Statements The Ministry of Finance and Economic Cooperation is responsible for the preparation and fair presentation of these financial statements in accordance with the Ethiopian Government's Manual of the Federal Accounting System based on a modified cash basis of accounting and for such internal control as it 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 nternational Standards on Auditing. Those standards require that we comply with ethical requirements and 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. n 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 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 l Fax 2il ASC-'dethione~t.coin U 72 25l

2 NDEPENDENT AUDTOR'S REPORT ON THE FNANCAL STATEMENTS OF THE FEDERAL DEMOCRATC REPUBLC OF ETHOPA MNSTRY OF FNANCE AND ECONOMC COOPERATON PRODUCTVESAFETY NET PROGRAMME PHASE- V (PSNP- V)(continued) Opinion n our opinion, the financial statements give a true and fair view of the financial position of the Productive Safety Net Programme Phase-V (PSNP-V) of the Federal Democratic Republic of Ethiopia, Ministry of Finance and Economic Cooperation as at 7 July 2016 and its sources and uses of funds for the year ended 7 July 2016 in accordance with the Ethiopian Governments Manual of the Federal Accounting System based on a modified cash basis of accounting. Reports on other requirements As required by the terms of reference and World Bank guidelines we report, to the extent we can assess, that a) all external financing has been used in accordance with the conditions of the relevant financing agreements, with due attention to economy and efficiency, and only for the purposes for which the financing was provided; b) Designated Accounts have been maintained in accordance with the provisions of the relevant financing agreements and funds disbursed out of the Accounts were used only for the purposes intended in the financing agreements; and c) financial performances of both the Programme and of implementing partners are satisfactory. d) national laws and regulations have been complied with and that the financial and accounting procedures approved for the Programme were followed and used. e) non-expendable equipments procured from Programme funds exist and there is a verifiable ownership by the Programme implementing beneficiaries in line with the financing agreement. Furthermore, with respect to the statements of expenditures submitted during the year and listed on page 17 in our opinion, i) the statements, together with the procedures and internal controls involved in their preparation, can be relied upon to support the related withdrawals; ii) iii) iv) adequate supporting documentation has been maintained to support claims to the World Bank for reimbursements of expenditure incurred; and said expenditures are eligible for financing under DA credit no.5540etand Multi Donors Co-financing DA Grant TFOA 1426ET; ineligible expenditures which were identified had been either to the Designated Accounts and or the donor partners. 28 December

3 THE FEDERAL DEMOCRATC REPUBLC OF ETHOPA MNSTRY OF FNANCE AND ECONOMC COOPERATON PRODUCTVE SAFETY NET PROGRAMME PHASE-V (PSNP- V) BALANCE SHEET AS AT 7 JULY ASSETS Notes Ethiopian Birr Ethiopian Birr CURRENT ASSETS Cash at bank 2b,3 5,059,150, ,649,187 Cash on hand 4 202,860, ,903 Advances 5 1,751,485,909 1,286,394 CURRENT LABLTES 7,013,496, ,094,484 Accounts payable 6 703,902,964 7,012,145 NET CURRENT ASSETS 6,309,593, ,037,3 REPRESENTED BY ACCUMULATED FUND 7 6,309,593, ,037,3 1 3 U

4 THE FEDERAL DEMOCRATC REPUBLC OF ETHOPA MNSTRY OF FNANCE AND ECONOMC COOPERATON PRODUCTVE SAFETY NET PROGRAMME PHASE- V (PSNP- V) STATEMENT OF SOURCES AND USES OF FUNDS FOR THE YEAR ENDED 7 JULY 2016 Cumulative from Period ended Notes Year ended 9 April 2015 to 9 April 2015 to 7 July July July 2015 Ethiopian Birr Ethiopian Birr Ethiopian Birr FNANCNG DA Credit (APL- V) 5540 ET 8,872,862,900 9,201,504, ,642,093 Grant from DFD 3,173,740,385 3,173,740,385 - rish Aid 235,479, ,479,262 - Grant from OA ,144,166,810 1,144,166,810 - Austrian Development Agency 48,322,800 48,322,800 - UNCEF 14,089,616 14,089,616 - Transfer from PSNP- ll 77,868,365 77,868,365 - Government Contribution 300,056, ,056,393 - (Loss) / Gain on foreign exchange (118,418,349) (117,991,463) 426,886 TOTAL FNANCNG 13,748,168,182 14,077,237, ,068,979 PROGRAMME EXPENDTURE Capacity Building Public works, and temporary directorate 47,828,887 47,828,887 support transfer 5,476,607,263 5,476,607,263 - Woreda Contingency 306,130, ,329, ,199,018 Federal Contingency 101,071, ,071,015 - Capital expenditure for public work 842,828, ,828,355 Livelihood transfer 33,569,640 33,569,640 Livelihood capacity building 270,582, ,582,518 Woreda Administration 191,315, ,316, Woreda Salary 143,970, ,970,965 Regional Management 139,807, ,817,411 9,830 Federal Management 70,899,084 71, 721, ,672 TOTAL EXPENDTURE 7,624,612,257 7,767,643, ,031,640 1 EXCESS OF FNANCNG OVER EXPENDTURES 6,123,555,925 6,309,593,26 4

5 THE FEDERAL DEMOCRATC REPUBLC OF ETHOPA MNSTRY OF FNANCE AND ECONOMC COOPERATON PRODUCTVE SAFETY NET PROGRAMME PHASE-V (PSNP- V) DESGNATED ACCOUNT STATEMENT For year ended 7 July 2016 Account number Depository bank Address National Bank of Ethiopia Addis Ababa, Ethiopia Related Credit DA Credit 5540 ET (APL V) Currency USD Credit received during the period 419,000, Deduct; Transfer to pool Birr account 301,600, Transfer to Federal Food Security Coordination Directorate 12,559, Ending balance - 7 July 2016 (314,159,100.00) 104,840j * 5

6 THE FEDERAL DEMOCRATC REPUBLC OF ETHOPA MNSTRY OF FNANCE AND ECONOMC COOPERATON PRODUCTVE SAFETY NET PROGRAMME PHASE-V (PSNP V) DESGNATED ACCOUNT STATEMENT For year ended 7 July 2016 Account number Depository bank National Bank of Ethiopia Address Addis Ababa, Ethiopia Related Grant RSH AD Currency EURO Grant received during the year 10,399, Deduct; Transfer to pool birr account (10,399,900.00) Ending balance -7 July Q

7 1 THE FEDERAL DEMOCRATC REPUBLC OF ETHOPA MNSTRY OF FNANCE AND ECONOMC COOPERATON PRODUCTVE SAFETY NET PROGRAMME PHASE-V (PSNP- V) DESGNATED ACCOUNT STATEMENT For year ended 7 July 2016 Account number Depository bank National Bank of Ethiopia Address Addis Ababa, Ethiopia Related Grant DFD Currency GBP Grant received during the year 100,083, Deduct; Transfer to pool Birr account 22,500, Transfer to Federal Food Security Coordination Directorate 49,418, ,918, Ending balance - 7 July

8 THE FEDERAL DEMOCRATC REPUBLC OF ETHOPA MNSTRY OF FNANCE AND ECONOMC COOPERATON PRODUCTVE SAFETY NET PROGRAMME PHASE-V (PSNP- V) DESGNATED ACCOUNT STATEMENT For year ended 7 July 2016 Account number Depository bank National Bank of Ethiopia Address Addis Ababa, Ethiopia Related Grant TF Grant No OA1426 Currency USD Grant received during the year 53,058, Ending balance - 7 July U

9 THE FEDERAL DEMOCRATC REPUBLC OF ETHOPA MNSTRY OF FNANCE AND ECONOMC COOPERATON PRODUCTVE SAFETY NET PROGRAMME PHASE-V (PSNP- V) DESGNATED ACCOUNT STATEMENT For yearended 7 July 2016 Account number Depository bank National Bank of Ethiopia Address Addis Ababa, Ethiopia Related Grant Austrian Development Agency Currency EURO Grant received during the year 2,000, Ending balance - 7 July & U

10 THE FEDERAL DEMOCRATC REPUBLC OF ETHOPA MNSTRY OF FNANCE AND ECONOMC DEVELOPMENT PRODUCTVE SAFETY NET PROGRAMME PHASE-V (PSNP-V) DESGNATED ACCOUNT STATEMENT For year ended 7 July 2016 Account number Pool Bank Account Depository bank National Bank of Ethiopia Address Addis Ababa, Ethiopia Currency ETB Beginning balance- 7 July ,440,930 ADD: Transfer from: -DA Credit 5540 ET 6,331,769,560 -DFD 679,391,700 -rish aid 253,727,400 -UNCEF 14,089,616 -PSNP 77,868,365 -Government contribution 300,056,393 7,656,903,034 7,808,343,964 DEDUCT: Disbursements and transfers to Regional States: - Tigry National Regional State 794,421,355 - Amhara National Regional State 2,463,857,916 -Oromia National Regional State 1,569,601,956 -Southern Nations, Nationalities and Peoples Regional State 1,590,781,032 -Harari National Regional State 43,703,752 -Dire Dawa City Administration 36,910,652 -Afar National Regional State 167,780,437 -Somal National Regional State 950,547,611 -Federal Food Security Coordination Directorate 102,970,628 -Ministry of Labour and Social Affairs 2,741,100 -MOFEC- Finance 2,438,500 7,725,754,939 -Bank service charge and miscellaneous 18,162,222 7,743,917,161 Ending balance -7 July ,426,803 10

11 THE FEDERAL DEMOCRATC REPUBLC OF ETHOPA MNSTRY OF FNANCE AND ECONOMCCOOPERATON PRODUCTVE SAFETY NET PROGRAMME PHASE-V (PSNP- V) NOTES TO THE FNANCAL STATEMENTS 7 JULY BACKGROUND The Programme was established to support Ethiopia's efforts to transition from relief-oriented assistance to a development-oriented productive safety net. These financial statements reflect the receipts and disbursements of credit given by Danish nternational Development Assistance Department of Foreign Affairs, Trade and Development - Canada European Commission Government of reland (DC) Government of the United Kingdom (DFD) nternational Development Association (DA) rish Aid Royal Netherlands Embassy SDA United Nations Children's Fund USAD WFP to finance safety net activities, including public works Programme sub-projects and support to labor-poor households, and institutional support as well as Household Asset Building Programmes. 2. SGNFCANT ACCOUNTNG POLCES The principal accounting policies adopted by the Programme, which are consistent with those applied in the preceding period, are stated below. a) Basis of preparation These financial statements have been prepared in accordance with the Government's accounting system outlined in the Manual of the Federal Accounting System based on * a modified cash basis of accounting. b) Currency These financial statements are presented in Birr. Transactions in foreign currency are translated into Birr at the approximate rate of exchange prevailing at the date of the transaction. Assets and liabilities denominated in foreign currencies are translated into Birr at the exchange rate ruling at the date of the balance sheet. c) Recognition of financial assets and financial liabilities The Programme recognizes a financial asset or a financial liability on its financial position when, and only when, it becomes a party to the contractual provisions of the instrument. A financial asset is derecognized when, and only when, the control over the contractual rights is lost. A financial liability is derecognized when, and only when, it is extinguished. 11

12 THE FEDERAL DEMOCRATC REPUBLC OF ETHOPA MNSTRY OF FNANCE AND ECONOMC COOPERATON PRODUCTVE SAFETY NET PROGRAMME PHASE-V (PSNP- V) NOTES TO THE FNANCAL STATEMENTS (continued) 7 JULY CASHATBANK CASH AT BANK AT MNSTRY OF FNANCE AND ECONOMC COOPERATON (MoFEC) Equivalent Designated accounts Amount in Foreign Currency Exchange rate in Ethiopian Birr DA Credit 5540ET USD 104,840, ,288,760,720 DFD GBP 28,164, ,088,570 RSH -DC EURO Multi Donor Trust Fund Grant OA1426 USD 53,058, ,158,317,611 Austrian Development Agency EURO 2,000, ,691,400 Balance in pool Birr account Number ,426,803 MOFEC-Finance Administration 680,091 Balance at Federal Food Security Coordination Directorate 48,383,124 Balance at Ministry of Labour and Social Affairs 2,171,630 B/ C/ F 4,420,520, U

13 THE FEDERAL DEMOCRATC REPUBLC OF ETHOPA MNSTRY OF FNANCE AND ECONOMC COOPERATON PRODUCTVE SAFETY NET PROGRAMME PHASE-V (PSNP-V) NOTES TO THE FNANCAL STATEMENTS (continued) 7 JULY CASH AT BANK (continued) Ethiopian Birr B/ B/ F 4,420,520,558 CASH AT BANK N REGONAL STATES Birr Tigray National Regional State 32,795,170 Amhara National Regional State 81,237,921 Oromia National Regional State 140,354,973 Southern Nations, Nationalities and Peoples Regional State 91,009,636 Harari National Regional State 112 Afar National Regional State 5,038,831 Somali National Regional State 287,447,583 1 Dire Dawa City Administration 745, ,629,643 Total all groups 5,059,150, U

14 THE FEDERAL DEMOCRATC REPUBLC OF ETHOPA MNSTRY OF FNANCE AND ECONOMCCOOPERATON PRODUCTVE SAFETY NET PROGRAMME PHASE-V (PSNP- V) NOTES TO THE FNANCAL STATEMENTS (continued) 7 JULY CASH ON HAND 2015 Ethiopian Birr Ethiopian Birr S. Amhara National Regional State 461,266 5 Oromia National Regional State 7,424, ,618 Southern Nations, Nationalities and Peoples Regional State Tigray 825, ,115 8,280 - Afar 190,841 - Somali 193,452,930 - DireDawa 15,745 - MOFEC-Finance 2,324-10, ADVANCES 2015 Ethiopia Birr Ethiopia Birr Tigray National Regional State 1,478, ,190 Amhara National Regional State 33,265,335 44,476 Oromia National Regional State 5,230, ,928 Southern Nations, Nationalities and Peoples Regional State 3,364, ,800 Harari National Regional State 11,329 - Afar National Regional State 429,822 - Somali National Regional State 53, Dire Dawa City Administration 23,688 - Federal Food Security Coordination Directorate 1,707,628,826-1,751,485, U

15 THE FEDERAL DEMOCRATC REPUBLC OF ETHOPA MNSTRY OF FNANCE AND ECONOMC COOPERATON PRODUCTVE SAFETY NET PROGRAMME PHASE-V (PSNP- V) NOTES TO THE FNANCAL STATEMENTS (continued) 7 JULY ACCOUNTS PAYABLE 2015 Ethiopian Birr Ethiopian Birr Tigray National Regional State 13,919,201 29,420 Amhara National Regional State 97,976,658 6,579,921 Oromia National Regional State 110,183,057 27,006 Southern Nations, Nationalities and Peoples Regional States 17,774,708 - Afar National Regional State 560,118 - Somali National Regional State 463,225,764 - Dire Dawa City Administration 151,331 - Federal Food Security Coordination Directorate 112,127 - Harari Peoples National Regional State - 375, ACCUMULATED FUND 703,902, Ethiopian Birr Balance at 7 July 2015 Excess of financing over expenditures 186,037,339 of the current year 6,123,555,925 Balance at 7 July ,309,593, DATE OF AUTHORZATON The Channel Programme Coordinating Unit Head of the Federal Democratic Republic of Ethiopia, Ministry of Finance and Economic Cooperation authorized the issue of these financial statements on 28 December U

16 THE FEDERAL DEMOCRATC REPUBLC OF ETHOPA MNSTRY OF FNANCE AND ECONOMC COOPERATON PRODUCTVE SAFETY NET PROGRAMME PHASE-V (PSNP-V) 9. RECONCLATON OF FRST TO FOURTH QUARTERS OF 2008 E.C. (2016 G.C) NTERM FNANCAL REPORTS (FRs) WTH THE PEROD END STATEMENT OF SOURCE AND USES OF FUNDS AND BALANCE SHEET SOURCES Cumulative 1st 2na 3ra 4th for the year ended Quarter Quarter Quarter Quarter 7 July 2016 Ethiopian Birr Ethiopian Birr Ethiopian Birr Ethiopian Birr Ethiopian Birr Development partners 4,370,239,262 2,390,177,509 5,406,486 6,722,838,516 13,488,661,773 Government contribution - 300,056, ,056,393 Balance transfer from PSNP- - 77,868,365 77,868,365 (Loss)/Gain on foreign exchange 11,501,135 (2,206,165) (103,883,445) (23,829,874) (118,418,349) TOTAL SOURCES 4,381,740,397 2,387,971,344 (98,476,959) 7,076,933,400 13,748,168,182 EXPENDTURES Programme Expenditures 186,691, ,491,111 1,738,625,046 5,387,804,190 7,624,612,257 EXCESS OF SOURCES OVER EXPENDTURES 4,195,048,487 2,076,480,23-3 (1,837,102,005) 1,689,1 6,123,555,92,5 Cash on hand 202,860,118 Cash at bank 5,059,150,201 Advances 1,751,485,909 Payables (703,902,964) Accumulated fund (186,037,339) FUND BALANCE 6,123,555,925 16

17 THE FEDERAL DEMOCRATC REPUBLC OF ETHOPA MNSTRY OF FNANCE AND ECONOMC DEVELOPMENT PRODUCTVE SAFETY NET (PSNP V) PROGRAMME PHASE-V(PSNP-V) FR WTHDRAWAL SCHEDULE for application submitted during the year from 8 July 2015 to 7 July 2016 Amount Amount Aplication Co-financiers requested disbursed Equivalent T No. Reference No. USD in Ethiopian Birr Ethiopian Birr USD 02 DA 5540ET 200,000, ,000,000 4,134,760, DA 5540ET 119,000, ,000,000 2,559,582, DA 5540ET 100,000, ,000,000 2,178,520,000 8,872,862, TF OA ,058,871 53,058,871 1,144,166,810 1,144,166,810 GBP GBP DFD 74,816,240 74,816,240 2,383,660,379 DFD 25,267,278 25,267, ,080,006 3,173,740,385 EURO EURO RSH 10,399,925 10,399, ,479,262 Austrian Development Agency 2,000,000 2,000,000 48,322, ,802,062 UNCEF 14,089,616 14,089, ,