BS/NUWSRP3/GEN/S/09/V.1/80. The Task Team Leader, National Urban Water Sector Reform Project (NUWSRP3), World Bank Country Office, Abuja.

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Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized BAUCHI STATE GOVERNMENT OF NIGERIA BAUCHI STATE WATER AND SEWERAGE CORPORATION

1 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized BAUCHI STATE GOVERNMENT OF NIGERIA BAUCHI STATE WATER AND SEWERAGE CORPORATION (NUWSRP3) (World Bank Assisted) No. 15, Gombe Road, G.R.A., Bauchi Tel: BS/NUWSRP3/GEN/S/09/V.1/ nd June, 2017 The Task Team Leader, National Urban Water Sector Reform Project (NUWSRP3), World Bank Country Office, Abuja. ATTENTION: Financial Management Unit, World Bank Country Office, Abuja. FORWARDING OF 2016 AUDIT REPORT IN RESPECT OF NUWSRP3 - BAUCHI Find attached two sets of REPORTS AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 3 1ST DECEMBER, 2016 EXTERNAL AUDITORS' REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 3 1 ST DECEMBER, 2016 in respect of the NUWSRP3 Bauchi. The distribution of the Reports is: one set for the TTL NUWSRP3 and one set for the Financial Management Unit of the World Bank Country Office. 2. It is hoped this meets your requirement, please. Engr.nmin liyu Gital Project Coordinator All Correspondences to t e Addressed to the Project Coordinator

2 BAUCHI STATE WORLD BANK ASSISTED REPORTS AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2016 'luv

3 BAUCHI STATE WORLD BANK ASSISTED REPORTS AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2016 CONTENTS PAGE Corporate information Auditors' report 3 4 Accounting policies 6 Balance sheet 7 Statement of sources and uses of funds 8 Notes to the financial statements 9 Special Account Activity Statements 10 Statement of Special Account 11 Summary of statement of expenditures 12 IDA Disbursement 13

4 - Page 3 - BAUCHI STATE WORLD BANK ASSISTED CORPORATE INFORMATION Project Implementation Unit: Eng. Aminu Aliyu Gital - Project Coordinator Ibrahim M Abubakar - Project Accountant Shehu Yahaya Jalam - CSMO Abubakar Aliyu Fate - M&E Officer Engr.Abdulmumin Mailafiya - W&SO Bala Ibrahim Dan Alfa - Procurement Officer Muhammed Suleiman Darazo - Internal Auditor Idris D. Bello - Environmental Safeguard Aliyu Musa Dambam - Social Safeguard Officer Shehu A. Kobi - Head PFMU Project Office: Bauchi State Water and Sewage Corporation, Third National Urban water sector reform project Bauchi, Nigeria. IDA Credit NQ: UNI Bankers: Auditors: Diamond Bank Plc Baker Tilly Nigeria, Chartered Accountants, Zion House, No. 16, Alaafin Avenue, Opposite Ratcon Construction, Oluyole Industrial Estate, Ibadan, Nigeria.

5 BAKERTILLY NIGERIA - Page 4- Chartered Accountants Zion House, 46 Alaafin Avenue Oluyole Industrial Estate P 0. Box lbadan, Nigeria Tel: +234 (0) (0) btnib@bakertillynigeria.com REPORT OF THE INDEPENDENT AUDIAWt: ON THE FINANCIAL STATEMENTS OF THE BAUCHI STATE WORLD BANK ASSISTED FOR THE YEAR ENDED 31 DECEMBER, 2016 CREDIT N UNI We have audited the accompanying financial statements of the World Bank Assisted NUWSRP 3 Project for the year ended 31 December, 2016 as set out on pages 7 to 13 and prepared on the basis of the accounting policies on page 6. The project is financed by the IDA Credit Number UNI. Respective responsibilities of the Project Management and Auditors The Project Implementation Unit coordinates the preparation the activities of the of the financial project and statements. is as such It responsible is our responsibility for independent opinion, based on our audit, as on auditors the financial to express statements an Basis and of opinion to report our opinion to you. We have conducted guidelines. our These audit Standards in accordance and World with International Bank guidelines Standard require on that Auditing we plan and and World perform Bank obtain reasonable assurance that the financial statements the are free audit of material to misstatement. includes examination, An audit on a test basis of evidence relevant to the amounts and disclosures financial statements. in the It also includes an assessment of the estimates and judgements project made officers by the in the preparation of the financial statements, and whether the accounting appropriate policies to are the project circumstances, consistently applied and adequately disclosed. We planned and performed our audit so as to obtain all the information and explanations, which we considered necessary in order to provide us with sufficient evidence to give reasonable assurance that the financial statements are free of material misstatements. In forming our opinion, we also evaluated the overall adequacy of the presentation of the financial statements. Opinion In our opinion, donor funds from World Bank have been provided and used in accordance with the conditions of the loan agreement with due attention to economy and efficiency and only for the purposes for which the fund was provided during the year under review. Counterpart funds have been provided during the year under review in accordance with the conditions of the World Bank. Goods and services financed have been procured in accordance with the Development Agreement Credit and Disbursement Letters. BAK ERTi necessary supporting documents, records and accounts IRNAll have R I iaqvities, with clear linkages been between kept the books in respect of account of and all reports project presented and to World the Government Bank, including expenditure reported via Summary Report.

6 The Designated Accounts have been maintained in accordance with the provisions of the- Page 5 - Development Credit Agreement and Disbursement Letter. The Project financial statements have been prepared in accordance with generally accepted accounting principles and practices and relevant World Bank guidelines, and give a true and fair view of the financial position of the NUWSRP 3 Project as at 31 December, 2016 and for the resources and expenditure for the financial year then ended. The accounting and overall internal control system to monitor expenditure and other financial transactions are adequate, effective and ensured safe custody ofproject financed assets. The ledgers are maintained as required by the World Bank as well as a fixed assets register. The Project complied with Article IV financial covenant of the Loan Agreement. Akobi Marcus Kayode FCA FRC/2013/ICAN/ for: BAKER TILLY NIGERIA CHARTERED ACCOUNTANTS IBADAN, Nigeria 2 June, 2017

7 - Page 6 - BAUCHI STATE WORLD BANK ASSISTED STATEMENT OF ACCOUNTING POLICIES The following are the significant accounting policies followed in recording transactions and in reporting the results of operations of the Project: I. Accounting convention The accounts are prepared under the historical cost convention. 2. Basis of accounting The cash basis was adopted in the preparation of Project's Financial Statements. 3. Fixed assets and depreciation (a) (b) (c) (d) (e) Fixed assets are those intended for use over a YEAR exceeding one accounting year and whose value per unit is not below N100,000. Items with respective unit costs below N100,000 are classified as "Special Project Assets" and included in a Special Project Assets Register. In applying the capitalization policy, all related (landed) costs and installation costs are included in the acquisition cost of the fixed asset item. Capital expenditure on contract works will be included on the basis of valuation certificates including retention. No depreciation is charged on the project's fixed assets as there are no revenues to be matched against such charges. 4. Inventory Inventory is valued at the lower of cost and net realizable value. 5. Debtors Debtors are stated after making specific provision for debts considered doubtful of recovery. 6. Foreign currency Income and expenditure items in foreign currencies are recorded in Naira at the rates ruling at the transaction dates. Assets and liabilities expressed in foreign currencies are converted to Naira at the rates ruling at the balance sheet date and gains or losses on such conversions are credited or charged to reserve in the year which they arise.

8 - Page 7 - BAUCHI STATE WORLD BANK ASSISTED BALANCE SHEET AS AT 31 DECEMBER, 2016 Notes Fixed asset 2 30,857,052 - Investment cost 3 40,386,645 Incremental operating costs 4 23,771,626 1,886,630 Cash and bank balances 5 1,010,023, ,917,983 Net current assets 1,105,039, ,804,613 1,105,039, ,804,613 Financed by: IDA Special account 5 885,141, ,000,000 State government contribution 6 216,883,804 - Other Income 8 3,013, ,613 1,105,039, ,804,613 PROJECT COORDINATOR HEAD - PFMU The accounting policies on page 6 and the notes on pages 10 and 11 form part of these financial statements.

9 - Page 8 - BAUCHI STATE WORLD BANK ASSISTED STATEMENT OF SOURCES AND USES OF FUNDS FOR THE YEAR ENDED 31 DECEMBER, IN LOCAL CURRENCY (N) Cash receipts IDA 89,141,575 State government counterpart 216,883,804 Other income 2,209,079 Total funding 308,234,458 Expenditure by categories: Assets Motorcycles and Tricycles 3,243,240 Office equipment 6,112,600 Office furniture and fittings 5,680,800 ICT equipment 2,566,200 17,602,840 Works 13,254,212 Investment cost Consultancy 25,923,128 Training 14,463,517 30,857,052 40,386,645 Incremental operating cost Transport and travelling 12,412,206 Advertisement 4,608,200 Repairs and maintenance 558,175 Printing and stationeries 384,760 Bank charges 565,961 PFMU 1,628,550 Entertainment 523,325 Communication expenses 808,164 Office and general expenses 395,655 Receipts less expenditure 21,884,996 Cash and cash equivalent as at 1/1/ ,917,983 Cash and cash equivalent at 31/12/2016 1,010,023,748 Represented by: Closing cash and bank balances: Counterpart fund 208,745,154 Special Account 797,844,246 Draw down Account 729,355 Interest Account 2,704,993 1,010,023,748

10 - Page 9 - BAUCHI STATE WORLD BANK ASSISTED SPECIAL ACCOUNT ACTIVITY STATEMENT AS AT 31 DECEMBER, 2016 (US $ ACCOUNT) A/C N DIAMOND BANK PLC Year 2016 $ 1. Cumulative advances to the end of current reporting year 4,303, Cumulative expenditure to end of last reporting year 20, Outstanding advances to be accounted (line I minus line 2) - 4,283, Opening SA balance at the beginning of reporting year 3,983, Add/Subtract: Cumulative adjustments (if any) 6. Advances from World Bank during reporting year 303, Outstanding advances to be accounted for (add lines 4 and 6) 4,287, Closing SA balance at end of current reporting year (as of December 31, 2016) 3,980, Add/Subtract: Cumulative adjustment Expenditure for current reporting year 303, Add Lines 9 and Activity closing balance (December 31, 2016) 3,980, Difference (if any) less interest on SA 9, Actual SA balance 3,970,623.84

11 - Page The Project BAUCHI STATE WORLD BANK ASSISTED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2016 The Federal Republic of Nigeria entered into a credit agreement with International Development Association. The Project Credit Number UNI became effective in Bauchi State in February, The project development objective are to increase access to improved water supply services in Bauchi, to improve the financial viability of existing water utilities in the state and to increase the investment planning capacity of the State. For the year Cumulative Cumulative balance Fixed Assets Goods 17,602,840 17,602,840 Works 1,4212 1, ,857,052 30,857, Investment cost Consultancy 25,923,128 25,923,128 Training.14,463,517 14,463,517-40,386,645 40,386, Incremental operating cost Bank charges 565, ,961 Transport and travelling 12,412,207 12,412,206 Advertisement 4,608,200 6,494,830 1,886,630 Repairs and maintenance of vehicle & Gen 558, ,175 - Printing and stationeries 384, ,760 - PFMU 1,628,550 1,628,550 - Entertainment 523, ,325 - Telephone, internet and postages 808, ,164 Office and general expenses 995, ,655 _ 21,884,996 23,771,626 1,886, Bank and cash balances Counterpart fund - 208,745,154 - Special Account - 797,844, ,858,316 Drawdown account - 729,355 1,700,568 Interest Account 2,704,993-1,010,023, ,917, State government contribution 216,883, ,883,804

12 - Page 11 - For the year Cumulative Cumulative balance IDA Special account N N N4 Balance at 1 January, ,000,000 - Drawings during the year 89,141,575 89,141, ,000,000 Balance as at 31 December, ,141, ,141, ,000, Other Income Balance as at 1 Jan 2016 Sales of tender document 210, ,000 - Interest on Account 1,969,555 2,773, ,113 Miscellaneous Income 29, ,209,079 3,013, ,613

13 - Page 12 - BAUCHI STATE WORLD BANK ASSISTED STATEMENT OF SPECIAL ACCOUNT AS AT 31 DECEMBER, 2016 ACCOUNT N BANK: DIAMOND BANK PLC $ Total amount received from IDA 4,303,000 Add: Interest received 9, Less: 4,312, Withdrawal applications based on eligible expenditure 332, Balance as at 31 December, ,980,122.45

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15 BAUCHI STATE WORLD BANK ASSISTED LIST OF ADDITIONS TO FIXED ASSETS DURING THE YEAR Date Name of the suppliers Transaction Details Amount - Page 14 - OFFICE EQUIPMENT N Adaya International Laptop computers (9) 1,458, Adaya International Desk Computer (3) 607, Adaya International Printers (2) 189, Adaya International Colour Printer 95, Adaya International Scanner 567, Adaya International External Hard Drive 218, Adaya International UPS (3) 48, Adaya International Cell Phone (10) 472, Adaya International Digital Camera (2) 75, Adaya International Air Conditioners (3) 1,512, Adaya International Refrigerators (6) 348, Adaya International Heavy duty Photocopier (1) 405, Adaya International Cam Coder (1) 114, ,112, FURNITURE & FITTING Adaya International Curtains (30) 162, Adaya International Metallic File Cabinet (9) 364, Adaya International Office chair senior Executive (1) 94, Adaya International Executive Table 3 in 1 (1) 108, Adaya International Visitor Chairs (20) 405, Adaya International Executive Table L Shape 2 in 1 (11) 965, Adaya International Jnr Executive Chairs (11) 371, Adaya International Waiting Chair (2) 67, Adaya International Bookshelf 4 Shelves (5) 675, Adaya International Write/Erazer Board (2) 40, Adaya International Paper Shredder (2) 243, Adaya International Notice board 800 x 800 (2) 54, Adaya International Conference chairs (20) 945, Adaya International Fire proof Filinf Cabinet (3) ,224, ICT 8/7/2016 Y B Ismail ICT All in one Video/Audio conferencing solution 997, /7/2016 Y B Ismail ICT LED Smart Tv (IFL cable (30) D -Link wireless) 724, /7/2016 Y B Ismail ICT Gigabits Router 195, /7/2016 Y B Ismail ICT Band with 5 nibps Dedicated ban width 300, ,216, MOTOR VEHICLES El-Medas Integrated Nig Ltd Tvs King GS Tricycles (3) 2,296, El-Medas Integrated Nig Ltd 3 Bajaj Motorcycles 792, ,088, ,642,400.00

16 - Page 15 - BAUCHI STATE WORLD BANK ASSISTED IDA DISBURSEMENT FOR THE YEAR ENDED 31 DECEMBER, 2016 Amount Amount WA Description Requested paid N N 002 Reimbursement 36, , Reimbursement 123, , Reimbursement 78, , Reimbursement 40, , Reimbursement 14, , Reimbursement 9, , , ,258.55

TRANSMISSION COMPANY OF NIGERIA NIGERIA ELECTRICITY AND GAS IMPROVEMENT PROJECT ANNUAL REPORTS AND ACCOUNTS FOR THE PERIOD ENDED

TRANSMISSION COMPANY OF NIGERIA NIGERIA ELECTRICITY AND GAS IMPROVEMENT PROJECT ANNUAL REPORTS AND ACCOUNTS FOR THE PERIOD ENDED ANNUAL REPORTS AND ACCOUNTS FOR THE PERIOD ENDED 3 1sT DECEMBER, 2015. CONTENTS Page Content 1 Project Management Team 2 Report of Auditors 3-4 Statement of Accounting Policies 5 Balance Sheet 6 Receipt