Financial Report for the period from 1 October 2015 to 30 September 2016

Transcription

1 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Financial Report for the period from 1 October 2015 to 30 September 2016 Community Driven Nutrition Improvement Project (CDNIP) Donor: Japan Social Development Fund Administrator: World Bank Trust Fund Grant Agreement TF May 2017 Public Disclosure Authorized

2 Table of Contents COUNTRY MANAGER S DECLARATION... 3 INDEPENDENT AUDITOR'S REPORT FINANCIAL AUDIT... 4 STATEMENT OF FINANCIAL PERFORMANCE... 6 STATEMENT OF FINANCIAL POSITION... 7 NOTES TO THE FINANCIAL POSITION SIGNIFICANT ACCOUNTING POLICIES DESIGNATED ACCOUNT GRANTS RECEIVED RECONCILIATION ADVANCES TO PARTNERS FUND BALANCE ACCRUED EXPENSES LIABILITIES PROJECT BUDGET AND YEAR TO DATE EXPENSES The World Bank has requested this report. The views expressed in this report are those of the external auditor, Moore Stephens LLP, and in no way reflect the official opinion of the World Bank. This report is intended solely for the information and use of CRS-USCCB and the World Bank. This report should not be used by any other party or for other than its intended purpose. 2

3 Country Manager s Declaration FOR THE PERIOD FROM 1 OCTOBER 2015 TO 30 SEPTEMBER 2016 It is the responsibility of management of Catholic Relief Services United States Conference of Catholic Bishops (USCCB) Community Driven Nutrition Improvement Project (CDNIP) in Timor Leste to prepare the financial report for each financial year which, gives a true and fair view of the state of affairs of the program and that adequately discloses the surplus or deficit for that period. In preparing the financial report, the management of Catholic Relief Services USCCB CDNIP in Timor Leste is required to: select suitable accounting policies and then apply them consistently; make judgements and estimates that are reasonable and prudent; and prepare the financial statements on the going concern basis unless it is inappropriate to presume that the branch will continue in business. Management are responsible for ensuring that the Catholic Relief Services USCCB CDNIP in Timor-Leste keeps proper books of accounts which disclose with reasonable accuracy, at any time, the financial resources of the program in Timor-Leste. Management has general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the program and to prevent and detect fraud and other irregularities. On behalf of Catholic Relief Services USCCB CDNIP in Timor Leste, Torrey Peace Country Manager 24 March

4 Independent Auditor's Report Financial Audit Unqualified Opinion We have audited the accompanying financial report of Catholic Relief Services USCCB Community Driven Nutrition Improvement Project ( the Project ), which comprises the statement of financial position as at 30 September 2016, and the statement of financial performance for the period 1 October 2015 to 30 September 2016, a summary of significant accounting policies, other explanatory notes and the Project Manager s Declaration. The Project Manager s Responsibility for the Financial Report The Project Manager is responsible for the preparation and fair presentation of the financial report and has determined the accounting policies used as described in Note 1 are consistent with the financial reporting requirements under the Project s funding agreement and are appropriate for the needs of the Project. This responsibility includes establishing and maintaining internal controls relevant to the preparation and fair presentation of the financial report that is 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. Auditor s Responsibility Our responsibility is to express an opinion on the financial report based on our audit. We conducted our audit in accordance with the International Standards on Auditing which concern Audits and Review of Historical Financial Information and in accordance with the basic principles and concepts of the International Framework for Assurance Engagements established by the IFAC for the performance of this audit, insofar as these standards can be usefully applied in this financial audit and its specific compliance context. These Auditing Standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance whether the financial report is free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor's judgement, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal controls relevant to the entity's preparation of the financial report that gives a true and fair view 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 controls. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Project Manager, as well as evaluating the overall presentation of the financial report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Independence In conducting our audit we have met the independence requirements of the International Federation of Accountants ( IFAC ) Code of Ethics for Professional Accountants. 4

5 Auditor s Opinion In our opinion, the financial report of Catholic Relief Services Community Driven Nutrition Improvement Project presents fairly, in all material respects, the financial position of Catholic Relief Services Community Driven Nutrition Improvement Project as at 30 September 2016 and of their performance for the period from 1 October 2015 to 30 September 2016 in accordance with the accounting policies described in Note 1 to the financial statements. Auditors' signature Name of Auditor signing Tim Woodward Auditor's address 150 Aldersgate Street, London, EC1A 4AB Date of signature 10 May

6 STATEMENT OF FINANCIAL PERFORMANCE For the period from 1 October 2015 to 30 September 2016 No. Description Notes I FY2015 FY2016 Total OPERATING REVENUE Funds Received 3 446, ,148 1,125,326 Total Income 446, ,148 1,125,326 II OPERATING EXPENSES CRS Expense Salaries & Benefits for Employee 147, , ,146 Project Materials - 41,183 41,183 Furniture, Vehicles,& Non- Computer Equipment under $ ,725-70,725 Accounting and Auditing Fees 11,633 (670) 10,963 Consulting Fees - 18,492 18,492 Communications Expenses Printing 34 19,331 19,365 Travel Expenses Training Expenses ,905 14,059 Vehicle Expenses Bank Charges Total CRS Expense 230, , ,715 Sub-recipient Expenses Salaries & Benefits 60, , ,411 Office Expenses 7,449 11,672 19,121 Occupancy Expenses 2,605 3,263 5,868 Travel & Representation 4,566 4,581 9,147 Vehicle Expenses 6,350 32,578 38,928 Material Purchases 11,319 54,675 65,994 Training Expenses 3,575 66,780 70,355 Monitoring & Evaluation 1, ,204 Other Expenses 2,079 7,916 9,995 Total Sub-recipient Expenses 99, , ,023 Total Expenses 330, , ,738 FUND BALANCE (I-II) 116,100 85, ,588 6

7 STATEMENT OF FINANCIAL POSITION As at 30 September 2016 No. I Description Notes FY15 FY16 CURRENT ASSETS Cash and Cash Equivalents 2 83, ,238 Receivables from Employees Advances to Partners 4 47,076 99,748 TOTAL ASSETS 131, ,986 II LIABILITIES AND FUND BALANCE Liabilities 7-34,921 Accrued Expenses 6 15,276 1,477 Fund Balance 3 116, ,588 TOTAL LIABILITIES AND FUND BALANCE 131, ,986 7

8 NOTES TO THE FINANCIAL POSITION For the period from 1 October 2015 to 30 September SIGNIFICANT ACCOUNTING POLICIES a. Description of the project Catholic Relief Services United States Conference of Catholic Bishops ( CRS-USCCB ) has received funding from the Japanese Social Development Fund (JSDF) administered by the World Bank for the amount of US$2.8 million towards the cost of the Community-Driven Nutrition Improvement Project ( CDNIP or the Project ). The objective of the Project is to improve nutrition practices targeted at children under the age of two and pregnant and lactating women in less developed communities in Timor-Leste. The Project has four components which are as follows: Community Mobilization, Awareness, Raising and Participatory Planning; Community Led Delivery of Nutrition - Specific Interventions; Community Led Delivery of Nutrition Sensitive Interventions; and Monitoring and Evaluation and Project Management. The project is being implemented by CRS over a four-year period with a closing date of 31 August 2018 (extended from 31 August 2017 under a no-cost extension dated 1 September 2016). b. Basis of preparation The financial report is for the Community Driven Nutrition Improvement Project ( the Project ), a programme established in Timor-Leste and implemented by Catholic Relief Services - United States Conference of Catholic Bishops. The financial report is prepared on an accrual basis. It is based on the historical cost convention and does not take into account changing money values unless stated otherwise. Cost is based on the fair value of the consideration given in exchange for assets. The financial report is presented in US dollars, which is the CRS-USCCB s functional currency. The following specific accounting policies have been adopted in the preparation of this report. c. Use of estimates and judgements The preparation of a financial report in conformity with International Financial Reporting Standards requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. 8

9 d. Revenue and economic dependency Funds received in exchange transactions (grants) are recorded as advance obligations to the funding entity until they are spent per the programme agreement, at which time they are recognised as revenue. The project is economically dependent on the World Bank-administered funding from the Japan Social Development Fund. e. Expenditures Expenditures are recognised and recorded at cost when incurred. f. Cash Cash is stated at its nominal amount in United States Dollars. g. Advances to partners The Project provides grant funds to Partner Organisations for contracted periods of time or for specific projects irrespective of the period of time required to complete those programmes. These are recognised as expenses when the Partner Organisations incur or use the grant funds. Unexpended grant funds of the Partner Organisations are recognised as advances to reflect all unliquidated accounts as at the balance sheet date. h. Fixed assets All items of property, plant and equipment are expensed in the Statement of Income and Expenditure in the year of acquisition. While an asset register is maintained, assets are not included in the statement of financial position. i. Payables Liabilities for trade creditors and other amounts carried at cost is the fair value of the consideration to be paid in future for goods and services received, whether or not billed to the Project. j. Taxation There is no charge for income taxation as the Project is not subject to taxation. k. Foreign currencies Foreign currency transactions are translated into functional currency using the exchange rates prevailing at the date of the transactions, where applicable. Foreign currency monetary items, if any, are translated at the yearend exchange rate. 9

10 2. DESIGNATED ACCOUNT The designated account is the bank account held at ANZ Bank in Dili in the name of CRS, account number The period-end balance per bank statement is reconciled to the total for cash and cash equivalents in the Statement of Financial Performance as follows: Designated account balance at 30 September ,843 Less: outstanding cheques (3,069) $ Add: outstanding deposit (Funding reference World Bank 07 net of bank charges) 139,464 Cash and cash equivalents at 30 September , GRANTS RECEIVED RECONCILIATION The disbursements for eligible expenditures were made pursuant to World Bank s Disbursement Guidelines set out in its Operational Policy. The disbursements were made as payment through the Project s bank account. The funding of the Project is in accordance with World Bank Disbursements Guidelines for Projects. The reconciliation of the grants and funds received is as follows: Fund balance brought forward from Year 1 116,100 Sources of Grants (Year 2) World Bank ,710 World Bank 02 13,764 World Bank ,156 World Bank ,746 World Bank 05 87,246 World Bank World Bank ,486 Total Grants 679,148 Uses of Grants (Year 2) Less: Operating expenditures (593,660) Fund Balance for Year 2 85,488 Fund Balance as at 30 September 2016 (see Note 5) 201,588 $ 4. ADVANCES TO PARTNERS The details of advances to partners are as follows: Sub-recipient USD Caritas Diocesana Baucau -CDB 26,953 Cruz Vermelha Timor-Leste-CVTL 18,285 Kolegas da Paz-KDP 54,510 Total Advances 99,748 10

11 5. FUND BALANCE This represent grants received for the Project but not yet expended as at 30 September All advances received for the Project are expected to be used within the next 12 months. 6. ACCRUED EXPENSES The details of the accrued expenses are as follows Accrued expenses USD Salary and fringe benefits 1,477 Total Accrued expenses 1,477 All accrued expenses are expected to be settled within the next 12 months. 7. LIABILITIES The details of the liabilities are as follows Liabilities USD Amounts owed by the World Bank 34,921 Total Liabilities 34,921 The liability represents costs incurred by the World Bank in Baucau, but paid by CRS-USCCB. The liability was settled during October

12 8. PROJECT BUDGET AND YEAR TO DATE EXPENSES The budget and actual project expenses are as follows: Component ref. Component detail Total Budget* actual expenses actual expenses Total accumulated expenditures to date 1 Component 1 433, , , ,733 Consultant-1CN 256,934 47, , ,126 Goods-1GD 168,872 73, ,654 Training-1TR 8,000 5,743 2,210 7,953 2 Component 2 1,134,864 26, , ,807 Consultant-2CN 62,178-15,887 15,887 Goods-2GD 125,000-6,688 6,688 Training-2TR 947,686 26, , ,232 3 Component 3 793,954 37, , ,739 Consultant-3CN 101,832 9,917 23,276 33,193 Goods-3GD 124,850-13,470 13,470 Training-3TR 567,272 27, , ,076 4 Component 4a 184,875 16,684 37,952 54,636 Consultant-4CN 164,875 16,684 36,689 53,373 Training-4TR 20,000-1,263 1,263 Component 4b 302, , , ,823 Operating Cost-4OC 247, , , ,075 Operating Cost-4OC 19,493-4,785 4,785 Consultant Audit-4BCN 36,000 11,633 (670) 10,963 TOTAL 2,850, , , ,738 *the budget was revised in a no-cost extension dated 1 September