NIGERIA EROSION AND WATERSHED MANAGEMENT PROJECT (NEWMAP) (FEDERAL MINISTRY OF ENVIRONMENT)

Transcription

1 THiE WORLD BANK NIGERIA EROSION AND WATERSHED MANAGEMENT PROJECT (NEWMAP) (FEDERAL MINISTRY OF ENVIRONMENT) CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 3 1 ST DECEMBER, 2016 AUDITED BY Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized OFFICE OF THE AUDITOR-GENERAL FOR THE FEDERATION Plot 273, Central Business District, Abuja

2 NEW MAP Consolidated Financial Statements for the Year Ended 3P3 December, 2016 Table of Contents CONTENTS Page Corporate Information 2 FPMU Management Report 4 Management Committee's Responsibility Statement 6 Report of the Independent Auditors 7 Statement of Financial Position 8 Statement of Financial Performance 9 Statement of Changes in Net Assets / Equity 10 Statement of Cash Flow 11 Notes to the Financial Statements 12 1

3 Consolidated Financial Statements for the Year Ended 31 't December, 2016 Corporate Information FPMU Management Committee Members of the Management Committee of the Federal Project Management Unit for the year ended 3 1 st December, 2016 are as follows: 1. Salisu Mohammed Dahiru - National Project Coordinator (NPC) 2. Ukpeh, 0. A. - Procurement Specialist 3. Agunu Anthony 0. - Monitoring & Evaluation Specialist 4. Idoko, A. A. - Project Engineer 5. AlhassanNyazi (Mrs.) - Climate Change 5. Egbunu Musa (Engr.) - Environmental Safeguard Specialist 6. Thomas Adebayo L. - Communication Specialist 7. AbubakarAbdulaziz - Project Accountant 8. AndaAyuba Y. - Water Resources Specialist 9. Dufeghalmomotimi J. - Head (Admin) 10. Agu Grace (Mrs.) - Internal Auditor 11. Mshelia Ruth (Mrs.) - Social & Livelihood Specialist FPMU Office Address: Plot 170, Aminu Kano Crescent, Wuse II, Abuja. Tel: +234 (0) newmapfpmu@gmail.com Auditors: Office of the Auditor-General for the Federation (OAuGF), Plot 279 Samuel Ademulegun Street, Central Business District (CBD), p.m.b. 128, Garki, Abuja. infogoaugef.ng Website: 2

4 Consolidated Financial Statements for the Year Ended 31" December, 2016 Bankers: The FPMU was migrated to and has been with the Treasury Single Account (TSA) as required by the FGN in September, The State Offices however, are still engaging commercial banks, which include: Zenith Bank, Plc. Keystone Bank Plc. Fidelity Bank First Bank of Nigeria Eco Bank Plc. 3

5 Consolidated Financial Statements for the Year Ended 31' December, 2016 FPMU Management Committee's Report The FPMU submits their report together with the audited financial statements for the year ended 31st December, 2015, which discloses the state of affairs of the Project. Project Description Nigeria Erosion and Watershed Management Project (NEWMAP) is an eight (8) year multi-sectoral and multi-scale project designed to initially address acute gully erosion problems in seven south eastern states - Abia, Anambra, Cross River, Ebonyi, Edo, Enugu and Imo while creating the necessary enabling environment and laying the foundation for scaling out to northern states and additional southern states. The project also focuses on improving livelihoods in these and additional states through sustainable management of natural resources. Objectives of the Project The Project Development Objective (PDO) is to reduce vulnerability to soil erosion in targeted sub-catchments. The project is aimed at improved erosion management and gully rehabilitation which will provide for: > Reduced loss of infrastructure including roads, houses, markets, etc. > Reduced loss of agricultural land and productivity from soil loss caused by surface erosion. > Reduced risks of floods in rural areas and reduced impacts on villages and agricultural areas. > Improved access to economic activities, social services, communication and road networks. > To achieve greater environmental and economic security. > Progressively restored vegetative cover, improved environmental conditions and more humid local climates which results in increased vegetation cover for wildlife and carbon sequestration. > Utilise Global Environment Facility (GEF) and Special Climate Change Fund (SCCF) support with fully blended IDA resources to fund locally driven planning and replicable, innovative actions for protective tree cover and biodiversity, urban storm water management and water harvesting.* The total targeted population at the beginning of the project is about 2.2 million primary/direct beneficiaries which are expected to gradually increase to about 2.6 million beneficiaries at the close of the project in year Majority of the population of the 4

6 Consolidated Financial Statements for the Year Ended 31' December, 2016 participating states - estimated at 30 million in 2013, rising to 33 million in 2020 are also to benefit from this project. Effective Date The project was approved on 8 ' May, 2012 by the Federal Executive Council with the financing and grant agreements signed on April 16, 2013 by both the FGN and the IDA. The project became effective on 1 6 th September, Key Project Information Project Name: igeria Erosion and Watershed Management Project (NE WMAP) Project ID: P IDA Credit: Lead Implementing Agency: Federal Ministry of Environment Effective Date: 1 6 h September, 2013 Expected Closing Date: 3 0' June, 2020 Credit Amount: Project Duration: Project Components: USD500,000, years 1- Erosion and Watershed Management Infrastructure In vestments. 2- Erosion and Watershed Management Institution and Information Services. 3- Climate Change Response 4- Project Management 5

7 NEW MAP Consolidated Financial Statements for the Year Ended 31s December, 2018 Statement of Management Committee's Responsibility on the Financial Statements The Financial Management Arrangements (Manual No. 3) of the NEWMAP requires the Management Committees of the Federal Project Management Unit (FPMU) and the Project Financial Management Units (PFMUs) at the states, to prepare financial statements which give a true and fair view of the project as at the end of the financial year. The financial statements must be prepared on a going concern basis unless it is inappropriate to presume that the project will continue in business. The Management Committee members have the responsibility for ensuring that the project keeps accounting records which disclose with reasonable accuracy, the financial position of the project and which enables them to ensure that the financial statements comply with requirements of the Financial Management Arrangements. The members also have a general responsibility of taking such steps as reasonably open to them to safeguard the assets of the project and to prevent and detect fraud and other irregularities. Members of the Management Unit consider that in preparing the financial statements on pages 7 to 10, they have used appropriate accounting policies, consistently applied and supported by reasonable and prudent judgments and estimates, and that all applicable accounting standards have been followed. Nothing has come to the attention of the Committee to indicate that the project will not remain a going concern for at least twelve months from the date of this statement. National Project oordinator FM Specialist 6

8 FICE OF THE AUDITOR-GENERAL FOR THE FEDERA DEPARTMENT ADQUARTERS: LAGOS OFFICE: Adit House, 5, Sir Mobolaji Bank Anth at 273, Samuel Ademulegun Street, P.M.B ntral Business District, M.B. 128,Garki-Abuja, Nigeria lgos, Nigeria 0 0 THE PRINCIPAL OFFICERS (MANAGEMENT), REPORT OF THE INDEPENDENT AUDIT ON THE CONSOLIDATED FINANCIAL STATEMENTS OF THE NIGERIA EROSION AND WATERSHED MANAGEMENT PROJECT (NEWMAP) (WORLD BANK ASSISTED) We have audited the Financial Statements of the Nigeria Erosion and Watershed Management Project (NEWMAP) (World Bank Assisted) for the year ended 3 1 st December, 2016 as set out on pages 8 to 11 which have been prepared on the basis of the Accounting Policies set out in Note 1 on page 12. MANAGEMENT'S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS The Management of the Project is responsible for the preparation and fair presentation of the Financial Statements in accordance with the International Public Sector Accounting Standards (IPSAS) accrual and also for instituting such internal controls as the Management determines it necessary to enable the Financial Statements that are free from material misstatement. AUDITORS' RESPONSIBILITY Our responsibility is to express an independent opinion on the Financial Statements based on our audit. We conducted the audit of Nigeria Erosion and Watershed Management Project (NEWMAP) in accordance with the International Standards of Supreme audit Institutions (ISSAIs) as promulgated by the International Organisation of Supreme Audit Institutions (INTOSAI). These standards require that we comply with ethical requirement, plan and perform the audit so as to obtain reasonable assurance about whether the Financial Statements free from material misstatements, whether caused by fraud or other irregularity or error. The procedures selected fwrobtaining assurance and evidence to support audit opinion depends on the auditors' judgment, including assessment of the risk of material misstatement of the Financial Statements. In making those risk assessment, we considered the Internal Control relevant to Nigeria Erosion and Watershed Management Project (NEWMAP) preparation and fair presentation of the Financial Statements. We also evaluated the appropriateness of the accounting policies used and the reasonableness of accounting estimates made by Management, as well as 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. OPINION In our opinion, the Financial Statements, which are in agreement with the books of account, present a true and fair view of the financial position of Nigeria Erosion and Watershed Management Project (NEWMAP) (World Bank Assisted) as at 3 1 st December, 2016, and of its performance of its operations, changes in net assets, its cash flows for the year ended 3 1 st December, 2016 and have been prepared in accordance with the International Public Sector Accounting Standards (IPSAS) accrual, accounting principles generally accepted in Nigeria and in the manner required by the World Bank. I. A. AD%EYE For: Auditor-General for the Federation 19th June, 2017

9 NEW MAP Consolidated Financial Statements for the Year Ended 311- December, 2016 STATEMENT OF FINkANCIAL POSITION AST 31ST D)ECEMBER2166 ASSETS NOTE 12/31/ /31/2015 Current Assets N N Cash & Cash Equivalents 3 7,471,073,805 4,009,463,954 Debtors & Prepayments 4 35,204,329 21,957,505 Stocks 5 132,600-7,506,410,734 4,031,421,459 Non-Current Assets Goods 6 2,606,422,567 1,105,798,547 Civil Works 7 18,640,599,447 10,243,551,037 Consultancy 8 5,239,687,403 2,854,138,948 Operating Costs - 496,890,779 26,486,709,417 14,700,379,311 TOTAL ASSETS 33,993,120,151 18,731,800,770 LIABILITIES Current Liabilities Sundry Creditors 9 (175,946,493) (123,056,286) NET ASSETS 33,817,173,658 18,608,744,484 CAPITAL/FUNDING Federal Government Contribution ,180, ,180,402 State Government Contributions 11 3,318,749,112 2,248,591,637 Global Environmental Facility - 95,637,000 Special Climate Change Fund - 48,915,000 International Development Association 12 31,843, ,135,334,431 TOTAL FUNDS PROVIDED 35,708,956,793 19,075,658,470 Accumulated Surpluses / (Deficit) (957,764,224) 34,751,192,569 19,075,658,470 Prior Year Adjustments (934,018,911) (466,913,986) 33,817,173,658 18,608,744,484 The notes on pages 12 to 18 form an integral part of the Accounts... National Project Coordinator Project Accountant (FPMU)

10 Consolidated Financial Statements for the Year Ended 31" December, 201 NOTES 31/12/ /12/2015 INCOME: 13 A Sales Of Tenders Document 4,830, ,515 Interest Received (Dollar Acct) 6,069,441 3,295,518 Interest Received (Naira Acct) 33,433, ,484 Miscellaneous Receipts 4,162, ,535 Total Operating Income (A) 48,496,316 5,058,052 EXPENSES: 13B Federal Project Management: Operating Costs Federal Project Management: Bank 219,676, ,940,818 Charges 12,415,670 1,577,595 State Project Management 513,062, ,039,515 Bank Charges: State Project Operating Costs 104,035,967 9,300,902 Pfmu Operating Cost 2,074,142 - Travelling Expenses 1,288,790 Office Rent 6,600,000 - Monitoring And Evaluation 147,106,622 90,000 Total Operating Expenses (B) 1,006,260, ,948,830 Surplus / (Deficit) for the Year (957,764,224) (496,890,778) 9

11 Consolidated Financial Statements for the Year Ended 315' December, 2016 IDA COUNTERPART ACCUMULATED TOTAL FUNDING DEFICIT N N N N Balance as at 1st January, ,135,334,431 2,855,777,039 18,991,111,470 Additions During the Year 15,707,692,849 1,010,152,475 (496,890,779) 1,613,908,030 Deficit for the Year - (957,764,224) (957,764,224) Balance as at 31st December, ,843,027,279 3,865,929,514 (1,454,655,003) 992,514,536 20,

12 Cansolidated Financial Statements for the Year Ended 31' December, CASH FLOW FROM OPERATING ACTIVITIES N N Surplus / (Deficit) for the Year (994,091,140) 496,890,779 Changes in Working Capital Items (Increase)/Decrease in Debtors & Prepayments (13,246,824) 32,013,356 (Increase)/Decrease in Stocks (132,600) (2,186,944) Increase / (Decrease) in Payables 52,890, ,048,672 Increase / (Decrease) in Unpaid Audit Fee - 3,300,000 Net Cash Flows from Operating Activities (954,580,357) 653,065,863 CASH FLOW FROM INVETSING ACTIVITIES Goods (1,500,624,020) (461,947,511) Civil Works (8,014,529,596) (10,187,020,890) Consultancy (2,385,548,455) (2,130,965,024) Net Cash Flow from Investing Activities (11,900,702,071) (12,779,933,425) CASH FLOW FROM FINANCING ACTIVITIES FG Counterpart Funding 500,500,000 State Governments Counterpart Funding 1,010,731, ,120,561,428 IDA 15,306,161, ,832,750,721 Net Cash Flow from Financing Activities 16,316,892,280 12,453,812,149 Net Cash Flow for the Year 3,461,609, ,944,587 Cash and Cash Equivalents at 1st January, 4,009,463,954 3,682,519,367 Cash & Cash Equivalents at 31st December, 7,471,073,805 4,009,463,954 11

13 Consolidated Financial Statements for the Year Ended 31 December, 2016 Notes to the Financial Statements Note 1: Statement of Compliance with IPSAS The financial statements set out above are in compliance with the requirements of the International Public Sector Accounting Standards (IPSAS), where applicable subject to the statement of accounting policies disclosed below. Note 2: Statement of Accounting Policies The following are the significant accounting policies adopted in the preparation and fair presentation of the financial statements. (a) Basis of Accounting The accounts have been prepared under the historical cost convention. No adjustments have been made in respect of effects of inflation and rising prices. (b) Foreign Exchange Rate Foreign currencies are converted at the rate ruling at the time of the transaction. (c) Fixed Assets Cost These are stated at cost. (d) Depreciation Fixed Assets and civil works are not being depreciated, in line with the project's policy. Note 3: Cash and Bank balances NAIRA DRAWDOWN ( COUNTERPART FEDERAL) SPECIAL SPECIAL FUND ACCOUNT TOTAL ( ACCOUNT ACCOUNT-TSA (32202-FEDERAL) STATE) (32101) (32102) (32201-STATE) PETTY CASH N N N N N N FPMU 370,478, ,610, ,404, ,884, ,378,757 ABIA 4,599, ANAMBR 185,679, ,950, ,229, A 3,262, CROSS- 211,713, ,409, ,385,590 RIVER - 261,759, ,321, ,081,395 EBONYI - 261,119, ,085, ,204,896 EDO 2,698, ,044, ,658, ,401,875 ENUGU - 262,670, , ,295,817 IMO - 345,312, ,821, ,133,260 DELTA 150, ,541, ,812, ,135,504,797 KOGI 640, ,686, ,000, ,327,043 GOMBE 19, ,736, ,500, , ,456,363 KANO 9,789, ,952, ,485, ,226,675 SOKOTO 4, ,257, ,262,257 PLATEAU 182, ,632, ,370, ,186, ,826,262 4,769,718, ,404,503 2,154,924, , ,471,073,805 12

14 Consolidated Financial Statements for the Year Ended 31 ' December, 201 Note 4: Debtors and Prepayments STAFF ADVANCES (31211) N FPMU 131, ABIA (3,137,796.60) ANAMBRA 1, CROSS-RIVER - EBONYI 9,973, EDO 498, ENUGU 19,136, IMO 611, KOGI - PLATEAU 8,016, GOMBE KANO SOKOTO (14,000.00) DELTA (12,500.00) 35,204, B Note 5: Stock - STATIONARIES GOMBE 132, Note 6: General Goods & Services - (24All-001-FEDERAL) (24Bl2-001-STATE) Balance 31/12/16 Additions the During Year Balance 1/1/16 N N N FPMU 1,614,136, ,201,828, ,307, ABIA 137,490, ,578, ,912, ANAMBRA 146,825, ,046, ,778, CROSS-RIVER 70,966, ,532, ,433, EBONYI 73,058, , ,007, EDO 160,500, ,081, ,419, ENUGU 98,428, ,909, ,518, IMO 86,854, ,718, ,136, DELTA 115,890, ,890, KOGI 10,015, ,015, KANO 29,675, ,675, SOKOTO GOMBE 32,855, ,855, PLATEAU 29,726, ,726, ,606,422, ,613,908, ,514,

15 : 仁 令參

16 건

17 Ugn > 99 z, > > n I > 2 Er Lj cm ro ri

18 Consolidated Financial Statements for the Year Ended 31P December, 2016 Note 9: Sundry Creditors TAX LIABILITY WITHOLDING VALUE UNCLAIMED CREDITORS TOTAL TAX (WHT) ADDED TAX ALLOWANC FOREIGN CREDITORS (12454) (VAT)(12453) E(12110) (12210) LOCAL(12211) N N N N N N FPMU 86,141, ,579, ENUGU 16,541, ,534, IMO 5,790, ,609, ,720,501 30,076,246 10,400,216 GOMBE 1,850, ,850, , ,530 PLATEAU 2,004, ,670, ,288, ,486, ,524,038 KOGI 69, , ,114 59,884, ,285, ,530 1,288,790 98,486, ,946,493 Note 10 - Federal Government Contribution (10200) Asat As at 31/12/ /12/2015 N N Opening Balance 547,180,402 46,680,402 Additions during the year nil 500,500,000 Closing Balance 547,180, ,180,402 Note 11 - State Government Contribution (10300) As at 31/12/2016 Year 2016 As at 31/12/2015 N N N ABIA 349,950, ,000,000 49,950,000 ANAMBRA 504,123,562 3,391, ,731,920 CROSS-RIVER 211,390, , ,260,000 EBONYI 254,397,299 50,000, ,397,299 EDO 1,144,605,244 30,000 1,144,575,244 ENUGU 35,502,000 35,502,000 IMO 102,175, ,175,174 GOMBE 30,000,000 30,000,000 DELTA 526,600, ,600,000 - KANO 30,000,000 30,000,000 KOGI 100,000, ,000,000 SOKOTO nil nil nil PLATEAU 30,005,000-30,005,000 3,318,749,112 1,010,152,475 2,308,596,637 16

19 Consolidated Financial Statements for the Year Ended 31 1t December, 2015 Note 12: International Development Association (IDA) Fund (10100) As at 12/31/2016 Year 2016 As at 12/31/2015 N N N FPMU 4,699,426,225 2,523,030,584 2,176,395,640 ABIA 966,711, ,591, ,120,144 ANAMBRA 2,179,814,627 1,116,729,709 1,063,084,918 CROSS-RIVER 4,292,928,321 1,470,946,395 2,821,981,926 EBONYI 1,000,331, ,365, ,965,993 EDO 11,302,350,082 4,861,191,363 6,441,158,719 ENUGU 1,357,739, ,566, ,172,705 IMO 2,709,985,403 1,379,531,017 1,330,454,387 GOMBE 650,595, ,595,393 DELTA 763,610, ,610,470 - PLATEAU 569,877, ,877,980 - KANO 466,974, ,974,052 - KOGI 481,150, ,150,547 - SOKOTO 401,531, ,531,574-31,843,027,279 15,707,692,849 16,135,334,431 Note 13: Prior Year Adjustment DR CR (=N=) (=N=) Sales Of Tender Document 4,337, Interest Received (Dollar Acct) 6,231, Interest Received (Naira Acct) 1,176, Miscellaneous Receipts 28,707, Federal Project Management: Operating Costs 373,364, Federal Project Management: Bank Charges 1,577, State Project Management 540,498, Bank Charges: State Project Operating Costs 53,169, Interest on Dollar Bank Acct 3,716, Interest on Naira Bank Acct 2,143, ,470, ,452, Net Prior Year Adjustment 934,018,

20 ブ