Freetown GOVERNMENT OF SIERRA LEONE

Transcription

1 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Our Ref: 4144/ask/aiw 22nd July 2015 The Financial Management Specialist World Bank Country Office Howe Street Freetown ATTN: Sydney Godwin Dear Sir, GOVERNMENT OF SIERRA LEONE Integrated Project Administration Unit (IPAU), Ministry of Finance & Economic Development, Treasury Building, George Street, Freetown AUDIT OF THE AUDIT OF THE FINANCIAL STATEMENTS OF THE REPRODUCTIVE AND CHILD HEALTH PROJECT PHASE 2 (RCHP 2) The audit of the above for the year ended 31st December 2014 has been completed. The Audited have been approved and signed by the Technical Steering Committee, Management of the Project, and the Auditors BDO. Please find enclosed a copy of the signed for your records. Sincerely Yours, Adams S Kargbo Ag.:Programme Coordinator- IPAU

2 Tel: Wilberforce Street Freetown, Sierra Leone P 0 Box nd July 2015 The Project Coordinator Integrated Project Administration Unit (IPAU) Ground Floor, Treasury Building George Street Freetown Ref: 997/g/bi/mij Dear Sir FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2014 Reproductive and Child Health Project - Second Phase We confirm that there were no reportable audit issues for the year ended 31 st December The issues which emanated from the audit exercise were cleared prior to the conclusion of the audit. The results of the audit tests carried out were also satisfactory. Yours faithfully

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4 CONTENTS PAGE General Information 1 Statement of Management's Responsibilities 2 L port of the Auditors 3-4 Statement of Resources and Expenditure 5 (World Bank Funding) Project Income and Expenditure Account 6 Project Statement of Financial Position 7 Statement of Cashflows 8 Notes to the 9-14 Report of the Auditors on the Special Account Statements 15 Integrated Project Adminstrative Unit (IPAU) - Special Account Statement - Account No Mi nistry of Health and Sanitation (MoHS) - Special Account Statement - Account No L LO

5 L Reproductive and Child Health Project 2 GENERAL INFORMATION Official Address Project Co-ordinating Unit Integrated Project Administration Unit (IPAU) Ground Floor, Treasury Building George Street Freetown Ag. Project Co-ordinator Mr. Adams Kargbo Bankers Sierra Leone Commercial Bank Limited Rokel Commercial Bank (SL) Limited LAqditors BDO Regent House 12 Wilberforce Street Freetown Vl

6 STATEMENT OF MANAGEMENT'S RESPONSIBILITIES It is the responsibility of 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 its surplus or deficit for that period. In preparing those financial statements, management is required to: select suitable accounting policies and then apply them consistently; * make judgements and estimates that are reasonable and prudent; maintain financial records and prepare the financial statements in accordance with the policies and procedures of the World Bank and other donors; prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Project will continue its operations. Management is responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Project. They have a general responsibility for such steps as are reasonably available to them to safeguard the assets of the Project and to prevent and detect fraud and other irregularities. On behalf of Management Chairman, Project Technical Steering Committee Ag, Project Co-ordinator 2

7 L Reproductive and Child Health Project 2 IDA H8 770, HRITF 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 8 of the Reproductive and Child Health Project Second Phase within the Ministry of Finance (Integrated Project Administrative Unit) and the Ministry of Health and Sanitation and the notes to the financial statements, which include a summary of significant policies and other explanatory notes as set out on pages I to 14. Management's responsibility for the financial statements The project management is responsible for the preparation and presentation of these financial statements on the basis of accounting for the purpose of determining the eligible income and 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 3, 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 expressing an opinion on the effectiveness of the entity's internal control. 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 statement presentation. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. 3

8 L Reproductive and Child Health Project 2 L ~IDA H8 770, HRITF bo INDEPENDENT AUDITORS' REPORT TO THE GOVERNMENT OF SIERRA LEONE AND THE INTERNATIONAL DEVELOPMENT ASSOCIATION (IDA) (Contd) In our opinion, the financial statements present a true and fair view of the affairs of the project as at 3 1 December 2014 and the result for the period ended in accordance with International Financial Reporting Standards (IFRS) and the requirements of the Project Agreement Document. Other matter - Restriction in use The financial statements have been prepared in accordance with the basis of accounting described in note 3 for the purpose of determining the eligible income and expenditure and results for the year for use by the International Development Association (IDA) and the Government of Sierra Leone and the financial statements and the related auditor's report may not be suitable for another purpose. Freetown 2015 Chartered Accountants t 4

9 STATEMENT OF RESOURCES AND EXPENDITURE (WORLD BANK FUNDING) Notes $ S $ $ Resources Balance brought forward: IPAU Special Account 1,216, ,402 MqHS Special Account 57,535 27,890 1,273, ,292 World Bank cash disbursements: IPAU Special Account 9,914,699 5,322,118 MoHS Special Account 1,398, ,781 Interest Direct payments - 1,000,000 Other receipts 1,415-4a 11,314,348 7,021,933 12,587,986 7,627,225 Expenditure Input based financing 7 2,911,962 2,111,413 Performance based financing 8 7,120,204 2,979,374 Supervision (M&E) 9 473, ,269 Medical Training , ,901 Local Councils Administration , ,630 11,671,644 6,353,587 Balance carried forward 916,342 1,273,638 Represented by Special bank account IPAU Special Account 5 914,290 1,216,103 MOHS Special Account 5 2,052 57, ,342 1,273,638 These financial statements were approved on Chairman, Project Technical Steering Committee Ag. Project Co-ordinator 5

10 PROJECT INCOME AND EXPENDITURE ACCOUNT Income Notes $ $ Funding from donors 6 11,671,644 6,353,587 Expenditure Input based financing 7 2,911,962 2,111,413 Performance based financing 8 7,120,204 2,979,374 Supervision (M&E) 9 473, ,269 Medical Training , ,901 Local Councils Administration , ,630 11,671,644 6,353,587 Th ese financial statements were approved on 2015 Chairman, Project Technical Steering Committee Ag. Project Co-rdinator 6

11 PROJECT STATEMENT OF FINANCIAL POSITION Assets Notes $ $ Cash and cash equivalents 5 916,342 1,273,638 Funding and liabilities Deferred income 6 916,342 1,273,638 Th ese financial statements were approved on 2015 Chairman, Project Technical Steering Committee Ag. Project Co- rdinator 7

12 IL Reproductive and Child Health Project 2 World Bank - IDA - ACGF Grant- TF , STATEMENT OF CASHFLOWS Operating Activities Notes $ $ Cash paid to Council 6 (11,671,644) (6,353,587) Cash outflow from Operating Activities (11,671,644) (6,353,587) Financing Activities Funding received 6 11,312,799 7,021,899 Interest received Other receipts 1,415 - Cah inflows from Financing Activities 11,314,348 7,021,933 Net increase in cash and cash equivalents (357,296) 668,346 Cash and cash equivalents at the beginning of the year 1,273, ,292 Cash and cash equivalents at the end of the year 5 916,342 1,273,638

13 NOTES TO TIlE FINANCIAL STATEMENTS BACKGROUND TO THE SUB-PROJECT Purpose and Activities The main objective of the Project is to increase utilization of a package of essential health services by pregnant and lactating women and children under the age of five. The Project constitutes the second phase of the Program, and consists of the following parts: Part 1. Strengthening Service Delivery (a) (i) Local Council Grants Provision of LC Grant to Local Councils to finance specific development projects for the provision of core basic services in the health sector, including rehabilitation of health facilities. (ii) Performance-Based Financing Services Grants Provision of PBF Services Grants to eligible Beneficiaries to finance specific development projects comprising packages of essential health services including preventive and curative services. Such services to include, inter alia, primary health care and preventive services for pregnant women, delivery and post-mortem care and immunizations for children under the age of five, and family planning services. (a) (i) (ii) Local Council Grant Administration Carrying out of a program of activities aimed at building capacity of the Recipient's Local Government Finance Department for supervision and monitoring of implementation of Part 1(a) of the Project, including provision of training in medical management to Local Councils' environmental committees Carrying out of a program of activities aimed at improving the capacity of LCs and the eligible health facilities for implementation of the PBF Services Subproject, including the appointment of an external agent to validate the results reported by the health facilities under the PBF Services Grants. Part 2. Capacity Building (a) (b) Carrying out of a program of activities aimed at building capacity of the MoHS for supervision, monitoring and evaluation of the Project. Carrying out of a program of activities aimed at building capacity of Njala University and University of Sierra Leone for provision of pre-service and postgraduate medical training. 9

14 IDA , H1RITF Fnancial Statements NOTES TO THE FINANCIAL STATEMENTS (Contd) 2 WITHDRAWAL OF GRANT PROCEEDS The Recipient may withdraw the proceeds of the Grant in accordance with the provisions of (a) Article Ill of the Standard Conditions; (b) the Particular Methods of Procurement of Goods and Works, (c) the Particular Methods of Procurement of Consultant's services and (d) Such additional instructions as the World Bank may specify by notice to the Recipient (including the "World Bank Disbursement Guidelines for Projects" dated May 2006, as revised from time to time by the World Bank and as made applicable to this Agreement pursuant to such instructions), to finance Eligible Expenditures as set forth in the table in the paragraph (a) below. a) The following table specifies the categories of Eligible Expenditures that may be financed out of the proceeds of the Grant ("Category"), the allocations of the amounts of the Grant to each Category, and the percentage of expenditures to be financed for Eligible Expenditures in each Category: ACGF % of Amount of the expenditure to Grant allocated IDA H8770 HRITF be financed Category expressed in expressed in expressed in (inclusive of taxes US$ US$ USS I Goods, works, consultants' services, Training Such % as shall be specified and Operating Costs financed by LC Grants in the Annual Work Plan under Part I (a)(i) of the Project. 5,290,000 3,060,000 - for the respective Fiscal Year 2 Goods, works, consultants' services, for PBF Services Subprojects under Part l(a)(ii) of the Project 5,700,000 5,000,000 5,000, % of amount of PBF Services Grant disbursed expenditure 3 Goods and services for Part 1(a)(iii) of the Project 6,700,000 3,000, % 4 Goods, consultants' services, Training and Operating Costs under Part 1(b) of the Project 1,500,000 1,000, % 5 Goods, consultants' services, Training and Operating Costs under Part 2(a) of the Project 500, % 6 Goods, consultants' services, Training and Operating Costs under Part 2(b) of the Project 310, % 7 Technical Assistence - 940, % Total 20,000,000 13,000,000 5,000,000 10

15 World Bank - IDA - A CGF Grant - TF , NOTES TO THE FINANCIAL STATEMENTS (Contd) 3 PRINCIPAL ACCOUNTING POLICIES The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the Project's financial statements: a Basis of accounting Statement of Resources and Expenditure are prepared on the basis of cash accounting whereby income is recognised on the receipt of cash and cash equivalents and expenditure is recognised on the disbursement of cash and cash equivalents. The project financial statements have been prepared under the historical cost convention on accruals basis. The basis of income recognition is described in note (d) below. b Foreign currency transactions i) Functional and presentation currency The functional currency is the local currency in Sierra Leone which is the Leone. The Project has however adopted the United States Dollars (US$) as its presentation currency as most of its transactions are denominated in US Dollars. Transactions in all other currencies are therefore considered to be foreign currency transactions. ii) Transactions and balances Foreign currency transactions are translated into the functional currency using the mid exchange rates prevailing on the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions denominated in foreign currencies are recognised in the Project Income and Expenditure Account. c Non-current assets Plant and equipment are expensed on acquisition by the Co-ordinating Unit. The financial statements therefore have no non-current assets shown. d Income Funding from the World Bank is held in a deferred income account when received and only recognised in the Project's Income and Expenditure Account when utilised.

16 World Bank - IDA -ACGF Grant - TF , NOTES TO THE FINANCIAL STATEMENTS (Contd) 4 DISBURSEMENTS $ $ Total grant receivable: Balance brought forward 1,273, ,292 Contributions received 11,312,799 7,021,899 Interest Other receipts 1,415-12,587,986 7,627,225 Total amount disbursed (11,671,644) (6,353,587) Amount not yet disbursed 916,342 1,273,638 4 b Contributions received during the year RCHP/20-2,050,202 RCHP/23-2,267,881 RCHP/26-1,002,035 RCHP 24 - UN Agency - 1,000,000 MoHS/RCHP2/ ,891 MoHS/RCHP2/ ,890 RCHP/TF ,099 - RCHP/TF ,001 - MoHS/RCHP2/003 1,476,754 - RCHP/TF ,869 - RCHP/TF ,683 - MOHS/RCH P2/P4A 5,999,891 - MOHS/RCHP2/ ,751 - RCHP/12 420,751 - L11,312,799 7,019,899 5 CASH AND CASH EQUIVALENTS Bank balances: Rokel Commercial Bank (SL) Limited (IPAU) 914,290 1,216,103 Sierra Leone Commercial Bank Limited (MoHS) 2,052 57, ,342 1,273,638 12

17 NOTES TO THE FINANCIAL STATEMENTS (Contd) 6 DEFERRED INCOME $ $ Balance brought forward 1,273, ,292 World Bank funding 11,312,799 7,021,899 Interest Other receipts 1,415-12,587,986 7,627,225 Released to Income and Expenditure Account (11,671,644) (6,353,587) Balance carried forward 916,342 1,273,638 Represented by Cash and cash equivalents 916,342 1,273,638 Deferred income represents the unspent balance of World Bank funding received at the end of the year. 7 INPUT BASED FINANCING Quarter 1 Quarter 2 Quarter 3 Ebola - 1,069, , ,962 83,713 2,400,000 2,911,962 2,111,413 8 PERFORMANCE BASED FINANCING Bo District Council 284, ,181 Bombali District Council 137, ,968 Bonthe District Council 114, ,739 Kailahun District Council 183, ,773 Kambia District Council 133, ,851 Kenema District Council 274, ,536 Koinadugu District Council 190, ,671 Kono District Council 133, ,381 Western Area District Council 894,947 1,143,119 Tonkolili District Council 261, ,729 Pujehun District Council 138, ,753 Moyamba District Council 193, ,305 Port Loko District Council 259, ,001 Western Area Rural District Council - 8,260 Other activities - 58,107 PBF external verification 320,150 - Ebola 3,600,000-7,120,204 2,979,374 13

18 NOTES TO THE FINANCIAL STATEMENTS (Contd) 9 SUPERVISION (M&E) $ S Surveys 216, ,026 Training 91,227 52,805 Operating cost 158, ,536 Goods and services 7,041 24, , , MEDICAL TRAINING Specialists, lectures and institution 191,278 31,105 Vehicle and equipment 744,565 16,875 Operating cost 45, ,921 S11 LOCAL COUNCILS ADMINISTRATION 981, ,901 Motor vehicle - 81,655 Bank charges 1,868 5,863 Communication 5,080 15,470 Printing and stationery 8,901 19,856 Training and capacity building 48, ,631 Travelling 23,921 94,141 Consultancy fee 34, ,465 Exchange gain/loss (1,309) 55 Audit fees 8,713 14,688 Office supplies 34,458 28,020 Minor equipment 3,514 2,302 Salaries and allowances 16,135 14, , , CAPITAL COMMITMENTS Capital commitments at the reporting date were nil. 13 CONTINGENT LIABILITIES Contingent liabilities at the reporting date were nil 14

19 r Reproductive and Child Health Project 2 L D OWorld IB Bank - IDA - ACGF Grant - TF , REPORT OF THE AUDITORS ON THE SPECIAL ACCOUNT STATEMENTS US DOLLAR ACCOUNT NUMBERS AND We have audited the accompanying Special Account statements numbered and established under the provisions of the IDA Programme for the period 1 January 2014 to 31 December The Project's Management is responsible for the preparation and presentation to of the Special Accounts. Our responsibility is to express an opinion on the Accounts based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those standards require that we plan and perform the audit to obtain reasonable assurance that the Special Account statements are free of material misstatement. We believe that our audit provides a reasonable basis fr our opinion. In our opinion, the Special Account statements give a true and fair view of the financial position as at F 31 December Freetown 2015 Chartered Accountants L 15

20 SPECIAL ACCOUNT STATEMENT Idntegrated Project Administration Unit (IPAU) Account No Depository Bank Rokel Commercial Bank (SL) Limited Address Freetown, Sierra Leone Related Grant Agreement TF C urrency United States Dollar Port A - Account Activity $ $ Beginning balance - 1 January ,216, ,402 Add: Replenishments 9,914,699 6,322,118 Less: Amount withdrawn (10,216,512) (5,683,417) Ending balance 31 December ,290 1,216,103 16

21 SPECIAL ACCOUNT STATEMENT Ministry of Health and Sanitation (MoHS) Account No Depository Bank Sierra Leone Commercial Bank Limited Address Freetown, Sierra Leone Related Grant Agreement TF Currency United States Dollar Part A - Account Activity $ $ Beginning balance - I January ,535 27,890 Add: Replenishments 1,398, ,781 Add: Interest Add : Other receipts 1,415 Less: Amount withdrawn (1,455,132) (670,170) Ending balance 31 December ,052 57,535 17