LIBERIA EXTRACTIVE INDUSTRIF.S TRANSPARENCY INITIATIVE (LEITI) INTERNATIONAL DEVEWPMENT ASSOCIATION (IDA) FUNDED PROJECT

Transcription

1 Public Disclosure Authorized Public Disclosure Authorized LIBERIA EXTRACTIVE INDUSTRIF.S TRANSPARENCY INITIATIVE (LEITI) INTERNATIONAL DEVEWPMENT ASSOCIATION (IDA) FUNDED PROJECT LIBERIA EXTRACTIVE INDUSTRIES TRANSPARENCY PROJECT EITI GRANI NO. TF FINANCIAL STATEMENTS FOR THE PERIOD 01JULY DECEMBER2015 Public Disclosure Authorized Public Disclosure Authorized

2 International Development Association Funded Project EITI Grant No. TF Contents General information Page 1 Project background 2 Report of the Project Management Team 3 Report of the independent auditor on the Financial Statements Financial statements: Statement of Cash Receipts and Payments Statement of Changes in Fund Balance 6 6 Statement of Financial Position Notes Report of the independent auditor on the Designated Account Statement Designated Account Statement Notes Report of the independent auditor on the Statement of Expenditure Statement of Expenditure Notes Appendices 1. Reconciliation statement of amount received by LEITI and disbursed by the Bank 2. Schedule of asset procured under the project 18 18

3 International Development Association Funded Project EITI Grant No. TF GENERAL INFORMATION Project Management Team Konah D. Kanno Jeffrey Yates Head of Secretariat Finance Director Registered office Independent auditor Bankers Liberia Extractive Industries Transparency Initiative (LEITI) Old Budget Bureau Building Adjacent the Executive Mansion P.O.Box4074 Monrovia, Liberia PricewaterhouseCoopers Liberia LLC Certified Public Accountants 9th Street Payne Avenue Sinkor Monrovia, Liberia International Bank (Liberia) Limited 64 Broad Stro::l P.O. Box Monrovia Liberia

4 International Development Association Funded Project EITI Grant No. TF For the period ended 31 D~cember 2015 PROJECT BACKGROUND The Liberia Extractive Industries Transparency Initiative (LEm) Secretariat received a Grant from the International Development Association in response for assistance to finance its transparency projects. The general objective of LEITI is to assist in ensuring that all benefits due to the Government and people of Liberia on account of the exploitation and/ or extraction of the country's minerals and other resources are verifo'.oiy paid or provided, duly accounted for, and pr dpntly utilized for the benefits of all Liberians and on the basis of equity and sustainability. The is consistent with LEm's statutory mandate of enhancing transparency/accountability in the extractive industry. The grant application was approved and became effective on August 19, The objective of the Project is to fund LEm's post validation activities. The Project consists of the following components: Provision of technical assistance for: 1. Component 1: The development and implementation of the Extractive Industries Transparency Initiative Multi-Stakeholde1 Group (EITI MSG) operations manual; 2. Component 2: The decentralization of LEITI activities including the identification of focal persons for each of the Member Country's 15 territorial administrations; 3. Component 3: The implementation ofleiti Secretariat's operations and policy manual; and 4. Component 4: Carrying out capacity building activities aimed at improving civil society organisations' participation to the LEITI. 2

5 International Development Association Funded Project Efl1 Grant No. TF REPORT OFTiiE PROJECT MANAGEMENT TEAM The Project Management Team has the pleasure in submitting their report and the audited financial statements of the EITI Grant No TF funded by the World Bank for the period ended 31 December Statement of Project Management Te8Jll's responsibilities The Project Management TeaM is responsible for the prep~ration of financial statements for each financial period which give a true and fair view of the state of affairs of the Project and of lite Statement of Cash Receipts and Payments for that period. In preparing these financial statements, the Project Management Team has selected suitable accounting policies and then applied them consistently, made judgements and estimates that are reasonable and prudent and followed International Public Sector Accounting Standards "Financial Reporting under the Cash Basis of Accounting". The Project Management Team is responsible for ensuring that the Project keeps proper accounting rerords that disclose with reasonable accuracy at any time the financial position of the Project. The Project Management Team is responsible for safeguarding the assets of the Project and taking reasonable steps for the prevention and detection of fraud and other irregularities. Principal activities The principal activities under the Project are stated on page 2 of this report. Financial results I The Statement of Cash Receipts and Payments on page 6 ows a net decrease in cash for the period of US$46,239 (net increase in cash for the period ende 30!nne 2015 US$84,061). BY ORDER OF TI-IE PROJECT MANAGEMENT Head of Secretariat (LEffi): Finance Director (LEITI): Jeffrey Yates March 31, 2016

6 REPORT OF'IHE INDEPENDENT AUDITOR TO 'IHE COUNI'R.Y DIRECTOR OF 'IHE WORLD BANK, LIBERIA REPORT ON FINANCIAL STATEMENTS We have audited the accompanying financial statements of the Liberia Extractive Industries Transparency Project EITI Grant No. TF set out on pages 6 to 9. These financial statements comprise the statement of financial position as at 31 December 2015, the statement of cash receipts and payments for the period then ended and a summary of significant accounting policies and other explanatory information. Project Management Team's responsibilities for the financial statements The Project Management Team is responsible for the preparation of financial statements that give a true and fair view in accordance with International Public Sector Accounting Standards "Financial Reporting Under The Cash Ba:;is of Accounting" and for.,.ich internal control, as ~ne Project Management Team determine is necessary to enable the preparation of the financial statements that are free from material misstatement, whether due to fraud or error. Auditor's responsibility Our responsibility is to express an opinion on the financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about 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 auditor's judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation of financial statements that give 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 control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Project Management Team, as well as evaluating 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. r 4

7 REPORT OF THE INDEPENDENT AUDITOR TO THE COUNI'RY DIRECTOR OF THE WORLD BANK, LIBERIA (CONTINUED) Opinion In our opinion, the accompanying financial statements give a true and fair view of the financial position of the World Bank Funded EfI1 Grant No. TF as at 31 December 2015 and its Statement of Cash Receipts and Payments for the period then ended in accordance with International Public Sector Accounting Standards (IPSAS) "Financial Reporting under the Cash Basis of Accounting". ~~:±:::~S:!IVJ Monrovia, Liberia _. pwc 31 March

8 International Development Association Fwuled Project ErrI Grant No. TF SI'ATEMENf OF CASH RECEIPI'SAND PAYMENTS (All amounts are expressed in United States Dollars) Receipts Receipts from World Bank Notes 2 Period ended Period ended 31December 30June ,873 Payments Consultants' Services Training and workshops Operating cost ,000 16, ,550 56, Total payments ~ l.Qz5 (Decrease)/Increase in cash for the period (~fi.239)..&.12!21 SI'ATEMENT OF CHANGES IN FUND BALANCE Fund balance at beginning of the period Increase in cash for the period 84,061 (46,239) Fund balance at end of period 3z.822.B._

9 International Development Association Funded Project EITI Grant No. TF01518r STATEMENT OF FINANCIAL POSIDON (All amounts are expressed in United States Dollars) Current assets Cash at bank Total Current assets Period ended 31December ,822 Period ended 30June Fund balance Accumulated fund Total fund balance The financial statements on pages 6 to 9 were approved by the Project Management Team on 31 March 2016 and signed on their behalf by: Head of Secretariat (LEID): Finance Director (LEITI): 7

10 International Development.Association Funded Project ErrI Grant No. TF Fortheperiodended31Dece1]1_b_e_r_2_0~ ~ ~--~ ~ NOTES 1 Accounting policies The principal accounting policies adopted in the preparation of these financial statements are set out below: a) Basis of accounting r The financial statements have been prepared under the historical cost convention and in accordance with International Public Sector Accounting Standards (IPSAS) "Financial Reporting under the Cash Basis of Accounting". b) Revenue recognition Transfers from the World Bank are recognised as revenue upon receipt in the designated Project's bank account. Direct disbursement to third parties made by the World Bank is recognised as revenue upon receipt of payment notification from the World Bank. c) Expenditure Expenditure is recognised when payment is made from the project bank a...wunt or directly by the World Bank. d) Foreign currency The functional and reporting currency is United States Dollars. Transactions in foreign currencies are recorded in United States Dollars at the rates ruling on the transaction dates. e) Property, plant and equipment Property, plant and equipment {PPE) are expensed upon acquisition. f) Cash and cash equivalents r Cash and cash equivalents consist of balances in the Project's approved bank accounts and cash on hand. 8

11 International Development Association Funded Project EITI Grant No. TF0: NOTFS(Continued) (All amounts are expressed in United States Dollars) 2 Receipts from World Bank Below is a schedule of the receipts from the World Bank for the period July 1, 2014 to December 31, 2015: Date Reference Period ended 31 December 2015 Period ended 30 June 2015 July3, 2015 November 4, 2015 February 04, 2014 December 06, 2014 LEITI WA003 LEITIWA004 LEITI WA001 LEITIWA002 17,880 5,993 99,889 75, nn 3. Consultants' services Investigation of discrepancies 3rd and 4th Em report Develop and implement Multi Stakeholder Group manual 25, Trainings and workshops Dissemination of report Traditional Leaders 16,942 50,040 ~ ~az 5. Operating cost Bank charges Decentralization -LEm Focal Points Production of sector & regional report 1,292 23,878 2,379 5,934 20, ~8 6. Commitments There were no outstanding commitments as at 31 December,

12 REPORT OF THE INDEPENDENT AUDITOR TO 1HE COUNTRY DIRECI'OR OF 1HE WORLD BANK, LIBERIA REPORT ON 1HE DESIGNATED ACCOUNf STATEMENT We have audited the accompa'lying Designated Account Statement of the Liberia Extractive Industries Transparency project for the period ended 31 December 2015 set out on page 12 togt.~her with the accounting policies on page 13. Project Management's responsibility for the Designated Account Statement The Project Management of the is responsible for the preparation and presentation of the Designated Account Statement in accordance with the World Bank financial reporting requirements as summarised in the accounting policies on page 13 and for such internal control, as the project management determine is necessary to enable the preparation of a Designated Account Statement that is free from material misstatement, whether due to fraud or error. Auditor's responsibility Our responsibility is to express an independent opinion on the Designated Account Statement based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the Designated Account Statement is free from material misstatement. An audit involves performing procedures to obtain audit c~dence about the amounts and disclosures in the Designated Account Statement. The procedures selected depend on the amhor's judgement, including the assessment of the risks of material misstatement of the Designated Account Statement, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and presentation of the Designated Account Statement 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 organisation's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Project Management, as well as evaluating the overall presentation of the Designated Account Statement. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. 10

13 REPORT OF THE INDEPENDENT AUDITOR TO THE COUNTRY DIRECTOR OF THE WORLD BANK, LIBERIA (CONTINUED) Opinion In our opinion, the accompanying Designated Account Statement of the Liberia Extractive Industries Transparency Project for the period ended 31 December 2015 has been prepared in all material respects, in accordance with the provisions of World Bank IDF EITI ::...-ant No. TF Basis of accounting and restriction on distribution and use Without modifying our opinion, we draw attention to Note 1 of the Designated Account Statement set out on page 12, which describe the basis of accounting. The Designated Account Statement is prepared to assist the Project Management Team to comply with the financial reporting provisions of the contract. As a result, the Designated Account Statement may not be suitable for another purpose. Our report is intended solely for the Project Management Team, LEITI and the World Bank and should not be distributed to or used by parties other than these. 31 March 2016 pwc 11

14 International Development Association Funded.Project ErrI Grant No. TF DFSIGNATED ACCOUNT STATEMENT FOR TIIE PERIOD ENDED 31 DECEMBER2015 (All amounts are expressed in United States Dollars) Balance at the beginning of the period Funds transferred (see note:< ~n page 9) Period ended Period ended 31December 30 June ,061 23,8~3 175,736 Total funds available Total disbursements (see page 6) 107, ,736 70,112 91,675 Cash book balance at the end of the period 37,822 ~ The Designated Account Statement and accompanying notes on pages 13 were approved by the Project Management on 31 March 2016 and signed on their behalf by: Head of Secretariat (LEm): Finance Director (LEITI): Jeffrey Yates 12

15 International Development Association Funded Project EITI Grant No. TF NOTES (AJl amounts are expressed in United States Dollars) 1 Accounting policies The following are the significant accounting policies adopted by the Project Management Team in the preparation of the Designated Account Statement: ~ Basis of accounting The Designated Account Statement has been prepared in accordance with World Bank reporting guidelines and format using the cash basis of accounting. b) Foreign currency transactions Transactions in currencies other than United States Dollars are converted to equivalent United States Dollars at the rate prevailing on each transaction date. Gains or losses arising on foreign currency transactions are credited to or charged against expenditure for the period. c) Amounts transferred during the period This is made up of funds transferred by the World Bank to the Designated Account maintained by LEITI. It is recognized when received. d) Eligible expenditure This is made up of expenditure incurred and paid from the Designated Accounts. It is recognised when actual payment is made. r 13

16 REPORT OF THE INDEPENDENT AUDITOR TO TIIE COUNI'RYDIRECTOR OFTIIE WORLD BANK, LIBERIA STATEMENT OF EXPENDITURE We have audited the accompanying Statement of Expenditure of the Uberia Extractive Industries Transparency Project Em Grant No. TF on page 16. Project Management's responsibility for the Statement of Expenditure The Project Management is responsible for the preparation and fair presentation of the Statement of Expenditure in accordance with the requirements of the World Bank Grant No. TF This responsibility includes; designing, implementing and mai.1taining internal contro~ r~:evant to the preparation and fair presentation of Statement of Expenditure 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 independent opinion on the Statement of Expenditure based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the Statement of Expenditure is free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the Statement of Expenditure. The procedures selected depend on the auditor's judgement, including the assessment of the risks of material misstatement of the Statement of Expenditure, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the Statement of Expenditure 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 organisation's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Project Management, as\\ eu as evaluating the overall r1resentation of the Sta.: -~ent of Expenditure. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. 14 '...

17 REPORT OF THE INDEPENDENT AUDITOR TO THE COUNTRY DIRECTOR OF THE WORLD BANK, LIBERIA (CONTINUED) Opinion In our opinion, the Statement of Expenditure submitted, as summarised on page 16 and the supporting schedules and information submitted with them, together with the internal control and procedures involved in their preparation, can be fairly relied on to support the applications for reimbursement in accordance with the requirement pursuant to the World Bank Grant EITI Grant No TF Basis of accounting and restriction on distribution and use Without modifying our opinion, we draw attention to Note 1 to the Statement of Expenditure set out on page 17, which describe the b.1sis of accounting. The St;»ement of Expenditurt' '.s prepared to assist the Project Management Team to comply with the financial reporting provisions of tne contract. As a result, the Statement of Expenditure may not be suitable for another purpose. Our report is intended solely for the Project Management Team and World Bank and should not be distributed to or used by parties other than Project Management Team and World Bank. 31 March 2016 pwc.. 15

18 International Development Association Funded Project EITI Grant No. TF STATEMENT OF EXPENDITURE (All amounts are expressed in United States Dollars) Cost Category Consultants' setvices Training and workshops Operating cost Period ended 31December ,000 16, ,112 Period ended 30June ,550 56,987 ~ ~ The Statement of Expenditure was approved by the Project Managemen~ on 2016 and signed on their behalf by: Head of Secretariat (LEm): Konah D. Karmo Finance Director (LEm): 16

19 Intemational Developmer.:i Association Funded Pi Jject EITI Grant No. TFoi5188 NOTES l Accounting policies The following are the significant accounting policies adopted by the Project Management Unit in the preparation of the Statement of Expenditure: a) Basis of accounting The Statement of Expenditure has been prepared in accordance with World Bank reporting guidelines and format using the cash basis of accounting. b) Foreign currency transactions Transactions in currencies other than United States Dollars are converted to equivalent United States Dollars at the rate prevailing on each transiiction date. Gains or losses arising on foreign currency transactions \ire credited to or charged a 6 ainst expenditure for(..-: ;eriod. c) Expenditure This is made up of expenditure incurred and paid from the Designated Accounts. It is recognized when actual payment is made.,,

20 International Development Association Funded Project EITI Grant No. TF December 06, 2014 Total LEITIWA004 US$ 6,055 0S$ 5,993 24,014 23, DA-A 139 RECONCILIATION STATEMENT OF ACCOUNT RECEIVED BY LEITI AND DISBURSED BY THE WORLD BANK Appendix2 SCHEDULE OF ASSET P1'..)CURED UNDER THE PROJECT Mobile phone US$ 472 Total 1,472 18