Supreme Audit Office 0 Government of Islamic Republic of Afghanistan

Transcription

1 Public Disclosure Authorized To Supreme Audit Office 0 Government of Islamic Republic of Afghanistan INDEPENDENT AUDITORS' REPORT The President of the Government of Islamic Republic of Afghanistan { Public Disclosure Authorized Public Disclosure Authorized Report on the Financial Statements 1. We have audited the accompanying statements of Cash Receipts and Paym Statements") of the Capacity Building for Result Facility Project World Bank Project19tVhi3845, Grant Number TF 11447, (hereinafter referred to as the "Project") for the year ended 30 Qaws of Solar Year 1394 (22 December 2014 to 21 December 2015), and a summary of significant accounting policies and other explanatory notes. The Ministry of Finance's Responsibility for the Financial Statements 2. The Ministry of Finance (the "Ministry") is responsible for preparation and fair presentation of the Financial Statements in accordance with International Public Sector Accounting Standards "Financial Reporting under the Cash Basis of Accounting." This responsibility includes designing, implementing and maintaining internal control relevant to the preparation and fair presentation of the financial statements which 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. 3, The Ministry's policy is to prepare the accompanying financial statements on cash receipts and payments basis. On this basis, revenue is recognized when received rather than when earned, and expenses when paid rather than when incurred. Public Disclosure Authorized Auditor's Responsibility 4. Our responsibility is to express an opinion on these Financial Statements based on our audit. We conducted our audit in accordance with the International Organisation of Supreme Audit Institutions (INTOSAI) standards. These standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance on whether the financial statements are free of material misstatement 5. An audit involves performing procedures to obtain sufficient and appropriate 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 Page 1 of 3

2 5. An audit involves performing procedures to obtain sufficient and appropriate 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 the risk assessments, i ery 9 eo, 4 Qis relevant to the entity's preparation and presentation of financial statements are d to design audit procedures that are appropriate in the circumstances, but no f expressing an opinion on the effectiveness of internal controls. An audit also inti s eva appropriateness of accounting policies used, the reasonableness of accountin management, as well as evaluating the presentation of the financial statements * A 6 6. We believe that the audit evidence obtained by us is sufficient and appropriate f0-4lj Fr basis for our opinion. Opinion 7. In our opinion, the Financial Statements present fairly, in all material respects, cash receipts and payments of the Capacity Building for Result Facility Project World Bank Project ID P123845, Grant Number TF011447, for the year ended 30 Qaws of Solar Year 1394 (22 December 2014 to 21 December 2015) in accordance with International Public Sector Accounting Standards "Financial Reporting under the Cash Basis of Accounting." Report on Compliance The Ministry of Finance's Responsibility for Compliance 8. In addition to the responsibility for the preparation and presentation of the financial statements described above, the Ministry of Finance is also responsible for ensuring that the activities, financial transactions and information reflected in the financial statements are in compliance with the Grant Agreement No. TF11447, entered on 21 January 2012 between the Islamic Republic of Afghanistan and the International Development Association acting as administrator of grant funds provided for the provision of USD One Hundred million (USD 100,000,000) funding to the Project. Auditor's Responsibility on Compliance 9. In addition to the responsibility to express an opinion on the financial statements described above, our responsibility includes expressing an opinion on whether the activities, financial transactions and information reflected in the financial statements are, in all material respects, in compliance with Financing Agreement. This responsibility includes performing procedures to obtain audit evidence about whether all cash payments and receipts are in compliance with the terms and Page 2 ol3

3 conditions of Financing Agreement. Such procedures include the assessment of the risks of material non-compliance. 10. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance. Opinion on Compliance 11. In our opinion, in all material respects, the activities, financial trans I ton reflected in the financial statements are in compliance with the terms an ditio Agreements. of C Other Matters - Restriction on Use 12. As indicated above, the statements of cash receipts and payments are prepared in accordance with the International Public Sector Accounting Standard "Financial Reporting under the Cash Basis of Accounting" and may not suit another purpose. 13. This report including our opinion is intended solely for the information and use of the President of the Islamic Republic of Afghanistan and the International Development Association and should not be used for any other purpose. We do not accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come. Other Matters - Internal Control Deficiencies 14. During the audit of the financial statements, we noted certain weaknesses in internal controls and other operational matters which have been disclosed to the Ministry in the management letter relating to the audit of the Solar Year These obser - ommendations, all of which have been discussed with the Ministry, are inte ed to improve internal ntrol or result in other operating efficiencies. June 2016 D o ammad Sharif "Sharifi" itor General of Afghanistan Supreme Audit Office Kabul, Afghanistan Page 3 of 3

4 k4 ta Islamic Republic of Afghani Capacity Building for Results Facility Project (World Bank Reference: Project ID P123845; Grant ID 11447) Financial Statements for the year ended 30 Qaws 1394 (21' December, 2015)

5 World Bank Reference: Project 1D P123845; Grant ID STATEMENT OF CASH RECEIPTS AND PAYMENTS Cumulative To Date Receiptsi Payments Payments Controlled by Third by entity Parties Total Total USD USD USD USD USD RECEIPTS '- 25,000,00 Initial Advance Replenishments 5,995, ,427,583 TOTAL RECEIPTS 5,995, ,427,580 PAYMENTS Disbursement Category: Iods, Non-Consulting Serveies, Consultants' -vices, Payment of CBR's Recruits, 7,277,639 holarships, Training & Workshops, Incremental Operating Costs Bank Charges ,25 TOTAL PAYMENTS 7,278,314 7,278,314 6,252,569 21,550,223 Excess/(Deficit) of Receipts over Payment (1,282,597) (1,282,597) (26,640) 21,877,357 Taminat (Net) 2,725 2,725 2,7 ncrease/(decrease) in Cash & Cash Equivalents (1,279,872 - (1,279,872) (26,640) 21,880,082 Cash and Cash Equivalaents at the beginning of the year 23,159,954-23,159,954 23,186,594 1ncrease/(Decrease) in Cash & Cash Equivalents (1,279,872) - (1,279,872) (26,640) Cash and Cash Equivalents at the end of the year 21,880,082-21,880,082 23,159,954 The accompanying notes form an integral part of this financial statement. M. Mustafa Mastoor Deputy Minister for Finance Ministry of Finance, Islamic Republic of Af an ean Dated: April 30, 2016

6 (World Bank Reference: Project ID P123845; Grant ID 11447) NOTES TO THE FINANCIAL STATEMENTS 1) LEGAL STATUS AND ACTIVITY a) The Capacity Building for Results Facility Project grant agreement was set up on January 21, The project's objective is to assist Government-of Afghanistan in improving the capacity and performance of select line ministries in carrying out their mandates and delivering-services 1 b) The project is funded by a grant bearing reference number e fghanistan Reconstruction Trust Fund (ARTF) in the amount of United States Do r000. c) The project consists of the following parts: i) Technical Assistance for Preparation and Implementation of Lr u ng programs ii) Building Human Resources iii) Civil Service Training iv) Project management, Monitoring and Evaluation d) The significant terms and conditions that determine or affect the availability of the funding assistance are primarily the presentation of the eligible expenditures to donor within the period as per and in accordance with the financing agreement, e) These financial statements of the Project have been prepared in accordance with the requirements of the Development Grant Agreement signed between the Government of the Islamic Republic of Afghanistan and the International Development Association (acting as administrator of ARTF) in January ) SIGNIFICANT ACCOUNTING POLICIES a) Basis of Preparation The financial statements are prepared under the historical cost convention and in accordance with Cash Basis IPSAS - Financial Reporting under the Cash Basis of Accounting issued by International Federation of Accountants (IFAC). b) Payments Payments made from Special Account are recognised in the financial statements based on the date the cheque is issued and direct payments by World Bank are recognised on the date on which the withdrawal application for the payment is submitted to the World Bank. However, cheques or withdrawal applications that were ultimately rejected by the bank or the World Bank are reversed in the reporting period. c) Reporting Currency The reporting currency is US Dollars. Since US Dollars is the principal disbursement currency of the donor, the financial statements are not prepared in the Afghani which is the currency of Afghanistan.

7 (World Bank Reference: Project ID P123845; Grant ID 11447) d) Currency translations Transactions in currencies other than the reporting currency are translated into US Dollar at the rate of exchange at which the transaction is actually executed. 3) NOTES TO ACCOUNTS a) Receipts These represent temporary loan received from government's own IT wlwrnt of such temporary loan would be refunded in due course when the funds ar g e donor. b) Bank Charges The Ministry of Finance has negotiated with Da Afghanistan Ban t r It not be charged on the transactions in the US Dollar Special bank accoun may be levied by intermediary banks on deposits into the Special Acc to the World Bank. Charges XCL6sAturned c) Appendices The accompanying appendices provide additional information and analysis and form an integral part of these notes, except as indicated otherwise. d) Others i) These Financial Statements are originally prepared in English and then translated into Dari. In the event of any inconsistency between the English and Dari versions, the English version shall be considered to be correct.

8 World Bank Reference: Project ID P123845; Grant ID SUMMARY OF WITHDRAWAL APPLICATIONS APPENDIX Al Description Application Number Initial Advance Amount USD USD DA-A ,45 DA-A 88 DA-A 87 DA-A DA-A 85 DA-A 84 DA-A 83 DA-A 82 DA-A 81 DA-A 80 DA-A ,589 DA-A ,659 DA-A ,804 DA-A ,158 DA-A ,930 DA-A ,365 DA-A ,036 DA-A ,334 DA-A ,814 DA-A ,320 DA-A 69 99,894 DA-A 68 85,369 DA-A 67 91,603 DA-A ,249 DA-A ,259 DA-A ,917 DA-A ,641

9 World Bank Reference: Project ID P123845; Grant ID APPENDIX A2 US Dollar SPECIAL ACCOUNT SUMMARY Account No: Depository Bank: Da Afghanistan Bank (DAB) Address: Kabul Opening Balance as per Bank Statement 1 9,954 Add: Replenishment Total Additions Deduct: Payments for Project Expenditure 7,274,914 Bank Charges 675 Total Deductions 7,275,589,717 Closing Balance as per B.S 30 QAWS 1394 (21 DECEMBER 2015) 21,880,082

10 World Bank Reference: Project ID P123845; Grant ID US DOLLAR SPECIAL ACCOUNT RECONCILIATION APPENDIX A3 Account No: Depository Bank: Da Afghanistan Bank (DAB) Address: Kabul Closing Balance as per bank statement - 30 QAWS 1394 (21 DECEMBER U880,082 USD Closing balance as per financial statements - 30 QAWS 1394 (21 DECEMBER 41 )21088,0,082

11 World Bank Reference: Project ID P123845; Grant ID COMPONENT-WISE DISBURSEMENTS (not an integral part of the Financial Statements) APPENDIX A Cumulative Project Component Actual Actual To Date USD Technical Assistance for Preparation and Implementation of Line Ministry Capacity Building programs 588,198 6,857,974 Building Human Resources 4187,29 t' 1,305,320 Civil Service Training 324,7 523,302 Project management, Monitoring and Evaluation TOTAL PAYMENTS 6,251,8 4,547,998

12 World Bank Reference: Project ID P123845; Grant ID STATEMENT OF ESTIMATED GRANT AMOUNT (Memorandum Statement - not an integral part of the Financial Statements) APPENDIX AS Amount In currency of commitment Amount of Grant USD 100,000,000 Amount disbursed by World Bank untill the end of USD 43,427,580 Undisbursed Balance USD 56,572,420 In reporting currency Amount disbursed by World Bank untill the end of 1394' 43,427,580 Equivalent US Dollars for undisbursed amount 56,572,420 Total estimated amount of Grant Funds available 1000,000 Cumulative Payments for expenditure as per the Statement of Cash Receipts & Pay Lt V'4e 121,550,223 1 Actual amounts of total disbursement made by the World Bank since the beginning of the project as available from Client Connection