JBDO QGVERNMENT' WEST AFRIC-A,AGRICULTU. DAH6 40 -SL MNISTRY OFAGRICU- TURE, FO F INANCIA .'FORE YEAR'END. Public Disclosure Authorized

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1 QGVERNMENT' Public Disclosure Authorized WEST AFRIC-A,AGRICULTU. DAH6 40 -SL MNISTRY OFAGRICU- TURE, FO F INANCIA.'FORE YEAR'END Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized JBDO

2 Ministry ofagriculture, Forestry and Food Security West Africa Agricultural Productivity Programme IDA SL and PH1RD TF SL CONTENTS PAGE(S) General Information - Report of the Project Management 2 Independent Auditors' Report 3-4 Statement of Resources and Expenditure 5-6 Income Statement 7 Statement of Financial Position 8 Statement of Cashflows 9 Notes to the Opinion on the Statement of Expenditure 13 Statement of Disbursement Reconciliation 14 Report of the Independent Auditors on the Project's Special Account 15 Special Account Statement IDA 16 Special Account Statement PHRD 17

3 Ministry ofagriculture, Forestry and Food Security West Africa Agricultural Productivity Programme IDA H6S40 - SL and PHRD TF 099S10-SL GENERAL INFORMATION ADDRESS 2 nd and 3 d Floor 24 Siaka Stevens Street Freetown PROJECT COORDINATOR Mr Sutiaman Sorie Sesay BANKERS Roket Commercial Bank (SL) Limited Siaka Stevens Street Freetown AUDITORS :BDO Regent House 12 Wilberforce Street Freetown

4 Ministry ofagriculture, Forestry and Food Security West Africa Agricultural Productivity Programme IDA H6540 -SI and P11RD TF SI REPORT OF THE PROJECT MANAGEMENT The Project Management has pleasure to report as follows: Statement of Responsibilities of the Project Management The Project Agreement dated 28th February 2011 requires the Project Management to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the project and of the resources and expenditure for that period. In preparing these financial statements, the Project Management is required to: * Select suitable accounting policies and then apply them consistently; * Make judgements and estimates that are reasonable and prudent; * State whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; * Prepare the financial statements on a going concern basis unless it is inappropriate to presume that the project will continue its activities. The Project Management is also responsible for keeping proper accounting records, which disclose with reasonable accuracy at any time the financial position of the project and to enable them to ensure that the financial statements comply with International Financial Reporting Standards. The Project Management is also responsible for safeguarding the assets of the project and for taking reasonable steps for the prevention and detection of fraud and other irregularities. The annexed financial statements disclose the financial activities of the project for the year ended 31 December 2014, and were approved by management on 13 " 0 C fv biwc 2015 and signed on its behalf by: Name Project Co-ordinator - WAAPP Sigature Name Chairman - National Steering Committee - WAAPP Signature Name Permanent Secretary - WAAPP Sig ature 2 BDO, a Sierra Leone partnership, is a member of BDO International United, a UK company limited by guarantee, and forms part of the international 8DO network of independent member firms. BDO is the brand name for the BDO network and for each of the BDO Member Firms

5 IB D O Mlinistry of Agriculture, Forestry and Food Security West Africa Agricultural Productivity Programme IDA H6540 -SL and PH1RD TF SL INDEPENDENT AUDITORS' REPORT TO THE GOVERNMENT OF SIERRA LEONE AND THE INTERNATIONAL DEVELOPMENT ASSOCIATION (IDA) We have audited the financial statements on pages 5 to 9 of the West Africa Agricultural Productivity Programme IDA H SL and PHRD TF SL for the year ended 31 December 2014 and the notes to the financial statements, which include a summary of significant accounting policies and other explanatory notes as set out on pages 10 to 12. Management's responsibility for the financial statements The projects management is responsible for the preparation and presentation of these financial statements on the basis of accounting for the purpose of determining the eligible expenditure and results for the year for use by the International Development Association and the Government of Sierra Leone. This responsibility includes: determining whether the accounting policies described in note 2 form an acceptable basis for preparing and maintaining internal controls relevant to the preparation and 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 opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing. These standards require that we comply with ethical requirements and plan and perform the 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 financial statements. The procedures selected depend on the auditors' judgement including the assessment of risk of material misstatement of the financial statements whether due to fraud or error, In making those risk assessment we consider internal controls relevant to the entity's preparation and presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of of expressing an opinion on the effectiveness of the entity's internal controls. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall financial statements presentation. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. 3 BDO, a Sierra Leone partnership, is a member of BOO International Limited, a UK company limited by guarantee, and forms part of the International BDO network of independent member firms. BOO is the brand name for the BDO network and for each of the SDO Member Firms

6 IB D O Ministry ofagriculture, Forestry and Food Security West Africa Agricultural Productivity Progranune IDA H6540 -SL and PHIRD TF SL INDEPENDENT AUDITORS' REPORT TO THE GOVERNMENT OF SIERRA LEONE AND THE INTERNATIONAL DEVELOPMENT ASSOCIATION (IDA) (Contd) Opinion In our opinion, the financial statements present a true and fair view of the state of affairs of the project as at 31 December 2014 and the results for the year then ended in accordance with the accounting policies adopted by the project as stated in note 2 of the financial statements and the requirements of the Project Agreement Document. Freetown i c Ocbober 2015 Chartered Accountants 4 BDO a Sierra Leone partnership, is a member of B00 International Limited, a UK company limited by guarantee, and forms part of the international BDO network of independent member firms. BDO is the brand name for the BDO network and for each of the BDO Member Firms

7 Miinistry afagricuiture. Forestry and Food S&ourity West Africa Agricudtural Productivity Progranmne ida SL and PHRD TF SL For the ywar rled 31 Decemer STATEMENT OF RESOURCES AND EXPENDITURE (IDA FUNDING) Le US $ Le USS Resources Opening balances: IDA designated account 4,225,711, ,724 5,990,060,934 1,396,285 Advance-UNOPS 6,263,735,997 1,456,683 Advance-CORAF 457,048, ,110 Disbursements IDA disbursements 17,273,369,623 3,952,247 16,212,927,733 3,770,448 IDA interest on designated account 1,878, ,326, ,221,744,419 6,496,196 22,206,315,147 5,167,507 Expenditure Civil works 1,980,537, , ,381, ,647 SmaLl grants 545,752, , Goods 7,286,232,168 1,674,703 2,829,404, ,117 Consultancy 4,367,723, ,351 2,523,881, ,405 Training and workshop 4,114,034, ,117 3,524,231, ,604 Operating costs 6,160,673,775 1,398,953 1,766,888, ,217 Exchange adjustments (13,968,017) 24,454,953,573 5,593,128 11,259,818,440 2,623,990 Results for the period 3,766,790, ,069 10,946,496,707 2,543,517 Represented by: IDA designated account 2,858,997, ,596 4,225,711, ,724 Advance - UNOPS 450,743, ,363 6,263,735,997 1,456,683 Advance - CORAF 457,048, , ,048, ,110 3,766,790, ,069 10,946,496,707 2,543,517 These financial statements w proved on 2015 Permanent Secretary - MAFFS Chairman- WAAPP National Steering Committee Project Coordinator - WAAPP 5

8 Ministry ofagriculture. Forestry and Food Security West Africa Agricultural Produciity Programme IDA f SL and PHRD TF SL STATEMENT OF RESOURCES AND EXPENDITURE (PHRD FUNDING) Le US$ Le US $ Resources Opening balances: PHRD designated account 185,340,873 43, Disbursements PHRD disbursements 15,983,233,256 3,675,337 13,188,224,528 3,067,029 PHRD interest on designated account 2,041, ,255, ,170,615,525 3,718,909 13,192,480,453 3,068,019 Expenditure Civil works 2,583,657, ,278 1,535,008, ,635 Small grants 4,955,863,183 1,128, Goods 327,032,520 74,342 2,489,942, ,449 Consuttancy 2,963,811, ,445 1,755,541, ,421 Training and workshop 1,920,714, ,202 5,290,944,235 1,170,818 Operating costs 3,042,014, ,014 1,935,703, ,593 Exchange adjustments (52,821) ,793,040,466 3,591,645 13,007,139,580 3,024,916 Results for the period 377,575, , ,340,873 43,103 Represented by: PHRD designated account 377,575, , ,340,873 43, ,575, , ,340,873 43,103 These financial statements were ap roved on S ( O 2015 m Permanent Secretary - MAFFS Chairman - WAAPP National Steering Committee f- PlProject Coordinator - WAAPP 6

9 Ministry ofagriculture, Foresry and F(od Security West Africa Agricltural Prodcriity Programmne IDA 1164-SL and PHRD TF SL Financia; Satements For tho year ended 31 December 2014 INCOME STATEMENT Notes Le US $ Le US $ Income IDA fund 3o 17,273,369,623 3,952,247 16,212,927,733 3,770,448 PHRD Japanese grant 3b 15,983,233,256 3,675,337 13,188,224,528 3,067,029 GoSL contribution 137,800,000 31,141 * Bank interest 3,919, ,582,405 1,764 Total income 33,398,322,364 7,659,627 29,408,734,666 6,839,241 Expenditure Civil works 4,564,195,431 1,034,803 2,164,389, ,282 Small grants 5,501,616,012 1,254, Goods 7,613,264,688 1,749,045 5,319,346,102 1,317,566 ConsuLtancy 7,331,534,413 1,674,796 4,279,423, ,826 Training and workshop 6,034,748,204 1,381,319 8,815,175,759 2,035,422 Operating costs 9,202,688,112 2,089,967 3,708,677, ,810 Exchange adjustments (52,823) (20,054,292) - Total expenditure 40,247,994,037 9,184,777 24,266,958,021 5,648,906 Transfer to accumulated fund (6,849,671,673) (1,525,145) 5,141,776,645 1,190,335 These financial statements were approved on 2015 Permanent Secretary - MAFFS Chairman - WAAPP National Steering Committee kli A Q:TP ject Coordinator - WAAPP 7

10 Ministry ofarickure, Forestry and Food Securky West Africa Agricatural Productivky Programme IDA fl6540-sl and PHRD TF IS inancial Statments STATEMENT OF FINANCIAL POSITION Notes Le US $ Le US 5 Receivables 4 907,792, ,473 6,720,784,931 1,560,793 Cash and bank balances 5 3,374,372, ,001 4,411,052,648 1,025,826 4,282,165,906 1,061,474 11,131,837,579 2,586,619 Represented by Deferred grant income 6 4,282,165,906 1,061,474 11,131,837,579 2,586,619 4,282,165,906 1,061,474 11,131,837,579 2,586,619 These financial stat ents were approved on _ 2015 Permanent Secretary - MAFFS Chairman - WAAPP National Steering Committee A SArojact Coordinator - WAAPP 8

11 Mlinistry ofagrickaure, forestry and Food Securify WeAi Africa Agricatural Prodacviy Progranue IDA SL and PHRID 7T L Financial Sarements For the year ended 31 Lkcem ber 2014 STATEMENT OF CASHFLOWS Operating Activities Notes Le US $ Le US $ Cash received from donors and interest 3 39,211,314,364 8,995,947 29,408,734,666 6,839,241 Cash paid to suppliers and employees (40,247,994,037) (9,184,772) (30,987,742,952) (7,209,699) Cashflows from operating activities (1,036,679,673) (188,825) (1,579,008,286) (370,458) Cash and cash equivalents as at Ist January 4,411,052,648 1,025,826 5,990,060,934 1,396,284 Cash and cash equivalents as at 31st December 3,374,372, ,001 4,411,052,648 1,025,826 These financial statements were approved on V Permanent Secretary - MAFFS Chairman - WAAPP National Steering Committee I? J 1(Pr ect Coordinator - WAAPP 9

12 Ministry ofagriculture, Forestry and Food Security West Africa Agricultural Productivity Programme IDA I6540-SL and PIIRD TE SL For dh year ended 31 Dectmher 2014 NOTES TO THE FINANCIAL STATEMENTS BACKGROUND INFORMATION OF THE PROJECT DESCRIPTION OF THE PROJECT The objective of the Project is to generate and accelerate the adoption of improved technologies in the participating countries7 top agricultural commodity priority areas that are aligned with the subregion's top agricultural commodity priorities, as outlined in the ECOWAS. The Project consists of the following component: Component 1: Enabling Conditions for Sub-regional Cooperation in the Generation, Dissemination and Adoption of Agricultural Technologies Aims at strengthening the institutional mechanisms and procedures for generating, disseminating, and adopting improved agricultural technologies and tools at national level to allow ECOWAS member countries to benefit from those technologies within a regional framework for technical and scientific cooperation. Component 2: Strengthening National Centers of Specialsation/Strengthening of Research System It will support the strengthening of National Centers of Specialisation (NCOS) in Niger for livestock, Benin for maize and Sierra Leone for mangrove rice, and the rebuilding of the capacities for adaptive research and technology transfer in Togo, The Gambia and Liberia. Component 3: Support to Demand-driven Technology Generation, Dissemination and Adoption Aims at financing priority-focused agricultural research and advisory services within participating countries and complement core program activities financed under Component 2. Component 4: Project Coordination, Management and Monitoring and Evaluation This component will establish an effective coordination, management, and MEtE system for the Project at the national and regional levels. 2 PRINCIPAL ACCOUNTING POLICIES The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS). The following accounting bases have been applied consistently in dealing with items which are considered material in relation to the project's financial statements. (a) Foreign currencies Foreign currency transactions are accounted for at the rate of exchange prevailing on the date at which the transaction was recorded. International Development Association transactions are recorded at the rate ruling on the value date of the transaction. ALL foreign exchange differences have been reflected in the Income Statement. The functional currency is the local currency in Sierra Leone which is the Leone. The presentation currency is Leone and US Dollar. Transactions in all other currencies are therefore considered foreign currency transactions. 10

13 Ministry ofagricuture, Forestry and Food Securily West Africa A9ricultural Productivity Programme IDA S and PHRD TF St Financial Statemenys For the ywar ended 31 December 2014 NOTES TO THE FINANCIAL STATEMENTS (Contd) (b) Net exchange gains/losses Net exchange gains/losses comprise gains less tosses arising from the conversion of foreign monetary assets and liabilities and include all reatised and unrealised fair value changes, interest, and foreign exchange differences. (c) Cash and cash equivalents Cash and cash equivalents include balance in the Special Account held with the Rokel Commercial Bank (SL) Limited. (d) Deferred grant income The grant is recognised as income over the period necessary to match them with the related costs, for which they are intended to compensate, on a systematic basis 3 DUSBURSEMENTS a Amount disbursed by IDA during the year Le US $ Le US$ Withdrawal application reference IDA/ ,537,978, ,227 Withdrawal application reference IDA/003-7,411,213,013 1,723,538 Withdrawal application reference IDA/ ,263,735,997 1,456,683 Withdrawal application reference IDA/0O5 3,846,762, ,596 - Withdrawal application reference IDA/006 4,109,381, ,670 - Withdrawal application reference IDA/007 2,848,415, ,422 - Withdrawal application reference IDA/008 5,159,206,534 1,140,156 - Withdrawal application WAAPP/CORAF/010 92,321,132 20,402 Withdrawal application WAAPP/CORAF/ ,275,256 23,265 Withdrawal application WAAPP/CORAF/008 84,602,911 19,012 Withdrawal application WAAPP/CORAF/009 74,223,686 16,679 Withdrawal application WAAPP/CORAF/007 54,423,827 12,299 Withdrawal application WAAPP/CORAF/006 77,742,781 17,569 Withdrawal application WAAPP/CORAF/005 50,852,414 11,690 Withdrawal application WAAPP/CORAF/ ,128,197 39,659 Withdrawal application WAAPP/CORAF/ ,420,764 25,590 Withdrawal application WAAPP/CORAF/002 37,925,139 8,789 Withdrawal application WAAPP/CORAF/ ,687, ,447 17,273,369,623 3,952,246 16,212,927,733 3,770,448 b Amount disbursed by PHRD during the year Withdrawal application WAAPP/PHRD/001A - 5,082,724,528 1,885,000 Withdrawal application WAAPP/PHRD/002-8,105,500,000 1,182,029 Withdrawal application WAAPP/PHRD/003 5,466,738,225 1,266, Withdrawal application WAAPP/PHRD/004 3,417,344, ,968 - Withdrawal application WAAPP/PHRD/005 3,006,700, ,802 - Withdrawal application WAAPP/PHRD/006 4,092,450, , ,983,233,256 3,675,337 13,188,224,528 3,067,029 11

14 Ministry ofagriculure, Foresry and Food Security West Africa Agricuural Productivity Programme IDA H6540-SL and PIRD TF SL Financial Stafements NOTES TO THE FINANCIAL STATEMENTS (Contd) 4 RECEIVABLES Le US$ Le US $ Advance to UNOPS for vehicles 450,743, ,363 6,263,735,997 1,456,683 Advance - CORAF meetings 457,048, , ,048, , ,792, ,473 6,720,784,931 1,560,793 5 CASH AND BANK BALANCES tda designated account 2,858,997, ,596 4,225,711, ,724 PHRD Japanese designated account 377,575, , ,340,873 43,102 GoSL Counterpart in trust with RPSDP 137,800,000 31,141-3,374,372, ,001 4,411,052,648 1,025,826 6 DEFERRED GRANT INCOME Balance at 1 January 11,131,837,579 2,586,619 5,990,060,934 1,396,284 (Loss)/Profit on income statement (6,849,671,674) (1,525,145) 5,141,776,645 1,190,335 4,282,165,905 1,061,474 11,131,837,579 2,586,619 12

15 ib D O ministry ofagriculture, Forestry and Food Security West Africa Agricultural Productivity Programme IDA H6540-SL and PHRD TF Sf - For Mhe year ended 31 December 2014 OPINION ON THE STATEMENT(S) OF EXPENDITURE SUBMITTED FOR THE YEAR ENDED 31 DECEMBER 2014 We have audited the Statement of Expenditure of the West Africa Agricultural Productivity Programme funded by the International Development Association (IDA) and the Japanese PHRD Grant with Project Numbers IDA H6540-SL and PHRD TF SL respectively, submitted in support of applications for reimbursement for expenditure in accordance with the IDA Agreement letter. Our examination was made in accordance with International Standards on Auditing and accordingly included such tests of the accounting records, verification of assets and liabilities, review of systems of internal controls and other auditing procedures that we considered appropriate in the circumstances. Opinion In our opinion, the statement of expenditure, the supporting summary sheets and information submitted with them can be relied upon to support the applications for grant disbursement by the International Development Association (IDA) for expenditure incurred for the purposes of the project specified in the above-mentioned IDA Document. Freetown isu ID C, 6,Q 2015 Chartered Accountants 13 8DO, a Sierra Leone partnership, is a member of BDO International Limited, a UK company limited by guarantee, and forms part of the international 800 network of independent member firms. BDO is the brand name for the BDO network and for each of the BDO Member Firms

16 Ministry ofagriculture, Frenry and Food Security West Africa Agricultural Prudactivity Progranmne IDA ff6540-s and PHR D TF L, STATEMENT OF DISBURSEMENT RECONCILIATION INTERNATIONAL DEVELOPMENT ASSOCIATION (IDA) GRANT NUMBER IDA - H6540 Amount Amount Received in Amount Disbursed Amount Special Mode of Disbursement Value Date Requested by IDA Disallowed Account us$ us$ us$ US$ Withdrawal Application WAAPPICORAF/ , , , Withdrawal Application WAAPP/CORAF/ , , , Withdrawal Application WAAPP/CORAF/ , , , Withdrawal Application WAAPP/CORAF/ , , , Withdrawal Application WAAPP/CORAF/ , , , Withdrawal Application WAAPP/CORAF , , , , Withdrawal Application WAAPP/CORAFI , , , Withdrawal Application WAAPPICORAF/ , , , Withdrawal Application WAAPPICORAF/ , , , Withdrawal Application WAAPPICORAF/ , , , Withdrawal Application WAAPP/CORAF/ , , , Withdrawal Application WAAPP/IDA/ ,2014 1,140, ,140, ,140, Withdrawal Application WAAPP/IDA/ , , , Withdrawal Application WAAPP/IDA/ , , , Withdrawal Application WAAPP/DA/OO , , , ,952,247 3,952,247-3,952,247 JAPANESE PHRD GRANT NUMBER PHRD TF SL Amount Amount Received in Amount Disbursed Amount Special Mode of Disbursement Value Date Requested by PHRD Disallowed Account us $ us $ US $ US $ Withdrawal Application WAAPP/PHRD/ , , , Withdrawal Application WAAPP/PHRD/ , , , Withdrawal Application WAAPP/PHRDI , , , Withdrawal Application WAAPP/PHRDI ,267, ,267, ,267, ,675,670 3,675,670-3,675,670 14

17 "B D O Ministry ofagriculture, Forestry and Food Security West Africa Agricultural Productivity Programme IDA H6540-SL and PHRD TF099510O-SL REPORT OF THE INDEPENDENT AUDITORS ON THE PROJECT'S DESIGNATED ACCOUNT STATEMENT - ROKEL COMMERCIAL BANK (SL) ACCOUNT NUMBER: IDA AND PHRD Opinion In our opinion, the receipts are properly accounted for and the withdrawals were made for the purpose of the project in accordance with the grant agreement. The designated account statement give a true and fair view of the ending balance for the period ended 3 1st December In accordance with the provisions of the terms of reference of this audit, we confirm as follows: * Funds provided to the project have been used for their intended purposes. * The designated account of the project has been maintained in accordance with the provisions of the Grant Agreement and with the disbursement rules and procedures. Freetown II O d e r, Chartered Accountants 15 0, a Sierra Leone partnership, is a member of BDO international Limited, a UK company fimited by guarantee, and forms part of the international 800 network of independent member firms. BDO is the brand name for the BOO network and for each of the BOO Member Firms

18 Ministry ofagriculture, Forestry and Food Security West Africa Agricultural Productivity Programme IDA H6540-SL and PHRD TF SL DESIGNATED ACCOUNT STATEMENT Account No: USD Depository Bank: Roket Commercial Bank (SL) Limited Address: Grant Agreement Number: Currency: Account Activity Siaka Stevens Street, Freetown IDA H SL US Dollars Grant from International Development Association (IDA) Balance at 1 January IDA Designated Account 982,724 1,396,285 Advance-UNOPS 1,456,683 - Advance-CORAF 104,110 - Add: Funds transferred by IDA 3,952,247 3,770,448 Interest Received Less: Expenditure by category in ,496,196 5,167,507 Civil works 454, ,647 Small grants 126,478 - Goods 1,674, ,117 Consultancy 994, ,404 Training and workshop 944, ,604 Operational costs 1,398, ,217 Exchange adjustments - Balance at 31 December 903,069 2,543,517 Balance at 31 December IDA Designated Account 678, ,724 Advance-UNOPS 120,363 1,456,683 Advance-CORAF 104, , ,069 2,543,517 16

19 Ministry ofagriculture, Forestry and Food Security West Africa Agricultural Productivity Programme IDA H6540-SL and PHRD TF SL DESIGNATED ACCOUNT STATEMENT Account No: USD Depository Bank: Rokel Commercial Bank (SL) Limited Address: Siaka Stevens Street, Freetown Grant Agreement Number: PHRD TF SL Currency: US Dollars Account Activity Grant from PHRD Balance at 1 January PHRD Designated Account 43,103 - Funds transferred by PHRD 3,675,337 3,067,029 Interest Received ,718,909 3,068,019 Civil works 580, ,635 Small grants 1,128,364 - Goods 74, ,449 Consultancy 680, ,421 Training and workshop 437,202 1,170,818 Operational costs 691, ,593 Exchange adjustments Balance at 31 December 127,264 43,103 17