LIBERIA ELECTRICITY CORPORATION (LEC) Liberia Eecticity Sector Enhancement Projects (LESEP) IDA and IDA

Transcription

1 BAKER TILLY LIBERIA Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized LIBERIA ELECTRICITY CORPORATION (LEC) Liberia Eecticity Sector Enhancement Projects (LESEP) Public Disclosure Authorized Independent Auditor's Report and Special Purpose Financial Statements For the year ended 30 June 2016 anl Irdependbeit member of BAKER TILLY I A 1--! -

2 Our Shared Values BAKER TILLY LIBERIA The Baker Tilly International Mission Statement 1. We lead by example. illy VALUES To operate a network whose members deliver, with integrity and 2. We deliver a quality service with an objectivity, superior independent audit, accounting, tax and financial services to clients through global emphasis on integrity. resources and relationships. 3. We are open and honest in all communications. 4. We act ethically. 5. We foster teamwork and collaboration with other Baker Tilly member firms. 6. We maintain a supportive environment in which our individuals can flourish

3 Liberia Electricity Sector Enhancement Project -LESEP (LEC) /i)r te year en d 30 Ji;e 20/6LIBERIA RA KEFR T IE IY TABLE OF CONTENTS G en eral in fo rm atio n Background Information on the Projects M anagement Responsibility t.et... Statement... 4 In dependent Au di tor'srep ort P roject B alan ce Sh eet Statement of Sources and Uses of Funds g Reconciliation of Actual Cash at Bank and Amount on Statement of Sources and Uses of Funds... 9 Notes to the project financial statements...i Independent Auditor's Reports on Designated Account Statement: Project Designated Account Statement (IDA-48420) Project Designated Account Statement (IDA ) Independent Auditor's Report on Compliance with Laws and Regulations A n n ex e s Annex I: IDA Statement of Sources and Uses of funds Annex II: IDA Statement of Sources and Uses of Fund Annex III: Schedule of Fund W ithdrawals Statement of DA Fund Withdrawal... 4 Statement of IDA Fund Withdrawals Annex IV: SD at State ment as at 30 June Annex V: Funds Disbursement Status and Statement of IDA funds disbursement status Statement of IDA funds disbursement status... 7 Annex VI: Schedule of Contract Status Statement of IDA contract status Statement of IDA contract status

4 Liberia Electricity Sector Enhancement Project (LESEP) fr the )war e12dced 30 Juime 2016 r GENERAL INFORMATION Office Liberia Electricity Corporation Compound P.O. Box 1559 West Point, Waterside Monrovia, Liberia Management Team Bankers Mr. Foday Soko Sackor - Managing Director, LEC Mr. Ernest Hughes - Deputy Managing Director, Financial and Administration Mr. Thomas Z. Gonkerwon - Deputy Managing Director, Comm, and Ops. Mr. Zahnga E. Peabody - Deputy Managing Director, Projects, Planning & Rural Electrification. United Bank for Africa (Liberia) Limited Broad Street & Nelson Streets Monrovia, Liberia Ecobank (Liberia) Limited Ashmun and Randal Streets Monrovia, Liberia Auditor Baker Tilly Liberia Limited 2 nd - 4 th Floors, King Plaza P.O. Box Broad Street, Monrovia Page 1

5 Liberia Electricity Sector Enhancement Project (LESEP) Idepenldent Auib-torn'.Report aild SMealPops Fn41d1ttme/ for1te )y0ar 611ded 30 fille 20/16 Background Information on the Projects On December 2, 2010, the International Development Association (World Bank) signed a Grant Agreement (Credit No LR) with the Government of Liberia to extend credit in the amount equivalent to six million five hundred thousand Special Drawing Rights (SDR 6,500,000) (variously, "Credit" and "Financing") to assist in financing the Government's Electricity Sector Enhancement Project. The Financing Agreement was subsequently rectified on March 20, 2012 to provide additional financing (Credit No LR) for the project in the amount equivalent to fourteen million two hundred thousand Special Drawing Rights (SDR 14,200,000) (variously "Credit" and "Financing"). The Project entails the following activities: a) Expansion and upgrading of distribution network supplying the urban areas of Monrovia, through the provision of distribution network equipment and installation services; b) Provision of subsidies to the Project Implementing Entity on account of new subsidized electricity connections made to qualifying low income neighborhoods in the Project service areas; c) Reinforcement, rehabilitation and expansion of medium and low voltage distribution grids supplying electricity to urban areas of Monrovia; d) Rehabilitation of bulk handling infrastructure related to receiving, delivering and storing Heavy Fuel Oil (HFO) supplies intended for power generation operations at the HFO-fired power plant at Bushrod Island; and provision of first-phase overhauled maintenance of the existing diesel generator units in Monrovia; e) Provision of technical assistance to strengthen the capacity of the Rural and Renewable Energy Agency (RREA) to develop policy foundations and strategy work to implement part E of the project; and ) Provision of technical assistance to support the implementation of the Project, including training the staff of the Project Implementing Entity, the Ministry of Lands, Mines and Energy (MLME) and other energy agencies of the Recipient, implementation of measure prescribed in the Environmental and Social Management Framework (ESMF) and Resettlement Policy Framework (RPF), and carrying out Project Implementing Entity's annual financial audits. Use of Credit Proceeds The table below sets out the categories of items to be financed out of the credit proceeds, the allocation of the amounts of the credit to each category and the percentage of expenditures for items to be financed in each category. Page 2

6 Liberia Electricity Sector Enhancement Project (LESEP) idepelldentl Auit- s Report ad Special Pur11po'se( Finatia/1 for The year enided 30 liunie ;AKE R TI LLY L 1atementI RIA A. Initial Financing Agreement s/n Amount of Amount of % of credit allocated credit allocated expenditure Category (expressed in SDR) (expressed in to be financed USD) 1. Goods, works, consultant services and operating costs under Part A i) of the project 2,500,000 3,846, % 2. Goods, works, consultant services and operating costs under Part B of the project 3,000,000 4,615, % 3. Goods, works, consultant services and operating costs under Part D of the project 500, , % 4 Unallocated 500, ,125 N/A Total 6,500,000 10,000,000 The closing date of withdrawals under this Credit Agreement is May31, B. Additional Financing Agreement s/n Amount of Amount of % of credit allocated credit allocated expenditure Category (expressed in SDR) (expressed in to be financed USD) 1. Goods, works, consultant services and operating costs under Part A (1) of the project 2,000,000 3,098, % 2. Goods, works, consultant services and operating costs under Part B of the project 10,500,000 16,267, % 3. Goods, works, consultant services and operating costs under Part D of the project 300, , % 4 Unallocated 1,400,000 2,169,013 N/A Total 14,200,000 22,000,000 The closing date of withdrawals under this Credit Agreement is May 31, Page 3

7 Liberia Electricity Sector Enhancement Project (LESEP) -"BAKFR TII Inependent _udlelitor' Reporad SpeialPurpose Fina tatmetll BE RI A fo)r /be year ended. 30 lu/ze 20/ 6 Management Responsibility Statement Management is responsible for the preparation and fair presentation of the Special Purpose Financial Statements. These statements comprise the Project Balance Sheet as at 30 June 2016, the Statement of Sources and Uses of funds for the year then ended and the notes to the financial statements, which include a summary of significant accounting policies and other explanatory information. Management's responsibility includes: 1. determining that the basis of accounting described in note 2 is an acceptable basis for preparing and presenting the financial statements in the circumstances; 2. designing, implementing and maintaining internal controls that ensure the special purpose financial statements are presented fairly, and are free from material misstatements, whether due to fraud or error; and 3. selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances. Approval of the Financial Statements The financial statements were approved by management on.s and signed on management's behalf by: Ernest Hugl u DMD Admin. & Finance Mr. Foday Soko Sackor Managing Director Page I 4

8 BAKER TILLY LIBERIA King Plaza 2nd - 4th Floors Broad Street P. 0. Box Monrovia 10 Liberia T: +231 (0) Independent Auditor's Report F: To: The Board of Directors and Donors of the Liberia Electricity Sector and Enhancement Project We have audited the Special Purpose financial statements of the Liberia Electricity Sector Enhancement Project (LESEP), which comprise the Project Balance Sheet as at June 30, 2016, the Statement of Sources and Uses of Funds for the year then ended and the notes to the financial statements, which include a summary of significant accounting policies and other explanatory notes. Management's responsibility for the financial statements Management is responsible for the preparation and fair presentation of these special purpose financial statements in accordance with the accounting policies described in note 2 to the financial statements. This responsibility includes: determining whether the accounting policies described in note 2 form an acceptable basis for preparation and fair presentation of the financial statements in the circumstances; designing, implementing and maintaining internal controls relevant to the preparation and fir presentation of the financial statements that 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. Auditor's responsibility Our responsibility is to express an opinion on these special purpose financial statements based audit. on We our conducted our audit in accordance with International Standards on Auditing. Those require standards that we comply with ethical requirements and plan and perform the audit to obtain assurance reasonable about whether the financial statements are free from material misstatement. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Partners: G. Fonderson (Executive Chairmanl. T Inc-nh f.-...

9 Liberia Electricity, Sector Enhancement Project -LE SEP (LEC) -% IDA and IDA BAKER TILLY Independen/~~~~~~~~~~~~~ A R/tr ReotadSea orbte ear ev/ed 30 ] -10/6 ps iacaxaie;cle RI Opinion In our opinion, the Special Purpose Financial statements present fairly in all material respects financial position of the Liberia Electricity Sector Enhancement Project as at June 30, 2016 and of the results of the operations of the project for the year then ended in accordance with the accounting policies adopted by entity as stated in Note 2 to the financial statements and IDA contractual conditions. (Cert,ifed bic Accountants December 31, 2016 Monrovia

10 L-iberia Electricity Sector Enhanlcem"ent Projec -t-lesep (LIEC) Inc(lepe'dent- Auditor'r Report,J& andpededl Plnpose Iad/aemt L IT II fir the, 3ear ended 30 11int? 20/6 -V;AKFl ]11 y Project Balance Sheet Assets Notes USS US$ Receivables - amount to be reimbursed Cash at Bank Total Assets ,963 Funded by: World Bank The financial statements were approved by the Board of Directors of the Liberia Electricity Corporation on signed on their behalf by: Ernest Hughe DMD Admin. & Finance Mr. Foday Soko Sackor Managing Director The notes on pages 1Oto 15 are an integralpaiy of thesefinamcial statementf Page 7

11 Liberia Electricity Sector Enhancement Project (LESEP) IDA and IDAB I for th;ear eded 30 Jione 20 /6 edet1i epor and Specd Rlpose anli B U RIA AKER TILLY Statement or Sources and Uses of Funds Total FY15 -Sources of funds Notes US$ US$ US$ Total - 385, ,835 Receipts -IDA LR fund withdrawals IDA funds received during the period 5a 1,673, , ,489 1,517,091 Direct payment to third parties 5b 5,415, ,618 1,871,093 5,127,758 -Reimbursement Sc 2,364, ,364,481 Special commitments Sd 1,457, ,063 1,457,769 Others 65,756 65, IDA LR fund withdrawals IDA funds received during the period 6a 1,942, , ,674 1,044,692 Direct payment to third parties 6b 14,153,731 3,115,304 8,373,970 11,038,427 Special commitments , ,705.otal receipts during the period 27,073,588 4,523,370 12,119,994 23,515,923 Totals fund available for project implementation Less: Uses of funds 27,073,588 4,908,414 12,405,829 23,515,923 Component A: Distribution Services 7 6,158, ,901 1,866,762 5,673,705 Component B: Enhancing options for power generations 15,808,926 3,511,427 7,687,844 12,297,499 -::omponent D: Technical Assistance 4,667, ,875 2,491,061 4,031,051 Total Uses of Funds 26,635,458 4,633,203 12,045,666 22,002,255 Excess of receipts over uses of funds 299, , , ,963 The notes oii pges 10 to 15 are an integral part of thesefinancial statements Page 8

12 Liberia Electricity Sector Enhancement Project (LESEP) lbakfr Ti1 IY Ineedn lluditor: - Report an(d Speckda/1Pmpo.,e FInaddSaee L 111 EIIA b r the-lyear endi ed 30 jane 2016 Reconciliation of Actual Cash at Bank and Amount on Statement of Sources and Uses of Funds Us$ US$ A Excess of Receipts over Uses of Funds 275, ,93 B Bank Balance Cash Balance Ending Bank Balance Difference (A - B) Represented by: Amount to be reimbursed Page l 9

13 Liberia Electricity Sector Enhancement Project (LESEP) Independea t Aldior' Ro a l BAKER TI IN or teyear e;2ld-30 Juim,201(6 LIBE RI [A Notes to the project financial statements 1. Summary of significant account policies The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied unless otherwise stated. 2. Basis of accounting The statements of resources and uses of funds have been prepared on the modified cash basis of accounting. The project's financial statements are presented in United States Dollars and have been prepared under the historical cost convention. 2.1 Foreign currency transactions Assets and liabilities denominated in foreign currencies are translated into United States Dollars at the rates ruling at the balance sheet date. Foreign currency transactions are accounted for at the rate of exchange prevailing on the date at which the transactions occurred and were recorded. World Bank's transactions are recorded at the rates ruling on the value dates of the transactions. 3. Goods and works (fixed assets) Goods and works (fixed assets) are expensed on acquisition but a comprehensive fixed assets register is maintained to account for and monitor those assets. 4. Audit Risk Assessment We assessed the risks of material errors or misstatements in the expenditure stated in the quarterly financial reports, whether caused by error or fraud. We designed and performed further audit procedures in respond to risks identified. This vork involved an assessment of the risks that: * the financial reports are not reliable i.e. that it does not present, in all material respects, the actual expenditure incurred for the Project in conformity with applicable Contractual Conditions; * the Project funds provided by the World Bank have not, in all material respects, been used in conformity with applicable Contractual Conditions; * fraud and irregularities can occur or have occurred which have an impact on Project expenditure and which are not detected and corrected in a timely manner; and * the relevant Contractual Conditions for the Project are not complied with. We evaluated whether detected misstatements are material, individually or in aggregate to LESEP. Paq,ei1

14 Liberia Electricity Sector Enhancement Project (LESEP) I. 'BAKER T1IlY b?"lepoll(mt. R6,pm. fir H>eJyear enlded 30 ]Ilne idprzl EA LBER IA Notes to the project financial statements (confinite) 5 Schedule of Fund Withdrawals a IDA funds LR Date Application Ref Application Type of Disbursementsd Amount TSource 2011/ Oct /2013 LESEP/LEC/ DA-A IDA Jul-12 LESEP/LEC/ ,132 DA-A IDA Jun-13 LESEP/LEC/012 23A635 DA-A IDA LZ / Aug-13 LESEP/LEC/ ,362 DA-A IDA Nov-13 LESEP/LEC/016 64,667 DA-A IDA Mar-14 LESEP/LEC/017 74,679 DA-A IDA Apr-14 LESEP/LEC/018 37,000 DA-A IDA Jun /2015 LESEP/LEC/ DA-A IDA b 10-Sep-14 LESEP/LEC/021A 152,786 DA-A IDA Jan-15 LESEP/LEC/ ,693 DA-A IDA Dec-15 LESEP/LEC/ ,737 DA-A IDA Mar-16 LESEP/LEC/032 Cumulative IDA Funds IDA Direct Payment to third parties (IDA LR) 2012/ DA-A IDA Jan-12 LESEP/LEC/ ,715 Direct Payment IDA Sep-12 LESEP/LEC/ ,446 Direct Payment IDA Sep-12 LESEP/LEC/ ,43 Direct Payment IDA / Jul-13 LESEP/LEC/ ,841 Direct Payment IDA May-14 LESEP/LEC/ Direct Payment IDA D P02 Page I 11

15 Liberia Electricity Sector Enhancement Project (LESEP) IDA and ida Inepnen ldor eportanld, 1pe 1A PKps Eia R -rtmet IA ER i. L,Y fi)rlthe year enidedl 30 latne 2076 et p, IEII Notes to the Project financial statements (continued) 2014/ Sep-14 LESEP/LEC/ Drc amn 9-Sep-14 LECEP/LEC/ ,740 Direct Payment IDA D Oct-14 LECIEP/LEC/ ,739 Direct Payment IDA Oct-14 LACEEP/LEC/024A 231,367 Direct Payment IDA Nov-14 LESEP/LEC/024B 171,158 Direct Payment IDA Nov-14 LECEP/LEC/ ,565 Direct Payment IDA Dec-14 LESEP/LEC/ ,755 Direct Payment IDA Jan-15 LESEP/LEC/025A 145,154 Direct Payment IDA Jan-16 LESEP/LEC/029 24,118 Direct Payment IDA Cumulative Direct Payments 5,415,37 c Reimbursement (IDA LR) 2012/ Jan-12 LESEP/LEC/003 1,295,481 Reimbursement IDA Jun-13 LESEP/LEC/010 1,9,48 Reimbursement IDA / Sep-13 LESEP/LEC/ Reimbursement IDA d Cumulative Reimbursement Special Commitments (IDA LR) 2014/ Sept.2014 LESEP/LEC/024A 17 Oct LESEP/LEC/024A 9-Feb-15 LESEP/LEC/ ,090 SC-4 580,616 SC-4.33,063 SC-4 6a IDA funds LR Type of Disbursements Fund Source Date Application Ref Application Amount DA-1 IDA / May-13 LESEP/LEC/AF ,0 DA-1 IDA / Oct-13 LESEP-AF/ M DA-1 IDA DA-1 IDA ,115 DA-1 IDA Page j 12

16 Liberia Electricity Sector Enhancement Project (LESEP) findepelienarluilt1 Reporl and Speded Pm11pose Fillalwda/ Skdlements jor thejyear- elided -30]june 2016 BAKER TIL LY L IBE1:R IA Notes to the project financial statements (continue) 21-Nov-13 LESEP-AF/006 24,182 ADHOC REINSTATEMENT IDA Jan-14 LESEP-AF/ ,596 ADHOC REINSTATEMENT IDA Jun-14 LESEP-AF/ DA-1 IDA ZZ1011 DA-1 IDA /2015 DA-1 IDA Sep-14 LESEP-AF/015B 174,622 DA-1 IDA Jan-15 LESEP-AF/021 93,052 DA-1 IDA Nov-15 LESEP-AF/028A 129,285 DA-1 IDA Dec-15 LESEP-AF/030 21,779 DA-1 IDA Jan-16 LESEP-AF/032 77,234 DA-1 IDA Feb-16 LESEP-AF/033 24,767 DA-1 IDA Mar-16 LESEP-AF/ ,470 DA-1 IDA Mar-16 LESEP-AF/036 74,959 6-May-16 LESEP-AF/ , Jun-16 LESEP-AF/039 Cumulative Funds IDA b IDA Direct Payments to third parties -(IDA LR) 2012/2013 Direct Payment IDA May-13 LACEEP/LEC/002 i00,00lp Direct Payment IDA Direct Payment IDA /2014 Direct Payment IDA Oct-13 LESEP-AF/004 1,285,000 Direct Payment IDA Mar-14 LESEP-AF/ ,980 Direct Payment IDA Jun-14 LESEP-AF/ , Jun-14 LESEP-AF/ , Jun-14 LESEP-AF/ f0 Direct Payment IDA Direct Payment IDA /2015 Direct Payment IDA Sep-14 LESEP-AF/015A 275,916 Direct Payment IDA Sep-14 LESEP-AF/ ,739 Direct Payment IDA Sep-14 LESEP-AF/016 1,079,103 Direct Payment IDA Oct-14 LESEP-AF/ ,216 Direct Payment IDA Oct-14 LESEP-AF/ ,080 Direct Payment IDA Oct-14 LESEP-AF/018A 584,927 Direct Payment IDA Nov-14 LESEP-AF/022 3,848,168 Direct Payment IDA Dec-14 LESEP-AF/018B 146,232 Direct Payment IDA Dec-14 LESEP-AF/017A 137,958 Direct Payment IDA Page 1 13

17 Liberia Electricity Sector Enhancement Project (LESEP) IRBAKER TINLY I Ideendnt1Jditmnr' Reporl and 3 eledl Pulp(ose FiaLa/IaBmngEERIA LL obr the year ended 30 Ju1ne 2101 Notes to the project financial statements (conimue 4-May-15 TRANSACTIONB 277,484 Direct Payment IDA Apr- 15 LESEP-AF/ ,147 Direct Payment IDA Aug-15 LESEP-AF/ ,126 Direct Payment IDA Jul-15 LESEP-AF/ ,327 Direct Payment IDA Oct-15 LESEP-AF/ Direct Payment IDA Oct-15 LESEP-AF/ ,299 Direct Payment IDA Dec-15 LESEP-AF/ ,720 Direct Payment IDA Dec-15 LESEP-AF/ ,943 Direct Payment IDA Mar-16 LESEP-AF/ , Jun-16 LESEP-AF/ , Jun-16 LESEP-AF/ ,032 Cumulative Direct Payments 14,53731 Paze 1 14

18 Liberia Electricity Sector Enhancement Project (LESEP) I neenetuitr'rt>ort andl" Shea/ P11PO'1e f"inan1,47el 3'lalrlvenls br he- year ended 30 lalie 206 F T I 1glT:IL LY Notes to the project financial statements (-onwinued) Total FY US 2015 MS US$ 7 Component A: Distribution Total services Distribution transformers 2,279, , ,770 Cable and conductors 1,794,770 1,295, ,295,481 Tools and equipment for distribution and training 1,442, ,442,462 Treated wooden poles 748, , ,700 Line materials, fuses and cable lugs ,72 748,700 Component B: Enhancing options for 484,901 1W6, 62 5fi-7hZQ0 8 power generation Generation equipment overhaul 2,056,198 18, ,273 Synchronization of generation 2,037,501 equipnment 476, ,695 - Fuel 41,000 supply, facility and storage 29, ,398 Supply and installation of thermal power plant 11,783,678 2,034,582 Supply 7,278,937 of generation parts 9,749, ,453 ASIA and 997,453 RAP for thermal plant for fuel system facility 240, ,870 Supervision of supply and installation of thermal power plant ,635 19,65 A114Z hi1a L8Z Component D: Technical assistance Consultants services, training and other operating costs 1,679,018 64,443 Consultancy 309,027 1,614, , ,678 Lease cost development plan 290,884 66, ,884 Financial audit 4,000-4,000 Unallocated 5,854-5,854 Amounts paid for IDA Project management including bank components 2,115,738-2,115,738 2,115,738 charges 129, , ,92 wia i _ io Cash and Bank US$ Bank balance US$ 7S,211 4US$93 Page I 15

19 Liberia Electricity Sector E nhancement Project (LESEP) orw 1he yeair eadled 30 june& 20 16UA BKRTA Lndlnde1 dbakert ly Notes to the project financial statements (continued) 11. Project Commitment As of 3 0 June 2016, LESEP has a total outstanding commitment of US$54,350-(IDA-48420) 1,467, (IDA and )). US$ Details of contract status are attached on Annex VI: - Status, page Schedule of Contract

20 BAKER TILLY LIBERIA King Plaza 2nd - 4h Floors Broad Street P. 0. Box Monrovia 10 Liberia T: +231 (0) F: Independent Auditor's Report on Designated Account Statement: United States Dollars Account Number and To: The Board of Directors and Donors of LESEP We have audited the accompanying Designated Accounts Statements: United States Dollar Account No and United States Dollar Account No of the Liberia Electricity Sector Enhancement Project (LESEP) IDA and IDA-50550, established under the provision of the Financing Agreements between the Government of Liberia and the International Development Association dated December 2, 2010, March 20, 2012 and February 5, 2015, respectively for the year ended 30 June 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 whether the financial statements are free from material misstatement and accordingly. The accompanying special account statements were prepared on the basis of cash deposits and withdrawals for the purpose of complying with the Financing Agreement. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. The receipts were properly accounted for and withdrawals were made for the purpose of the project in accordance with the Financing Agreement. The accompanying Designated Accounts statements present fairly in all material respects the closing bank balances of US$ 275,221 (US$ 150,414 - (IDA-48420) and US$124,797 - (IDA-50550)) and the account activities for the year ended 30 June 2016 on the basis of cash deposits and withdrawals. December 31, 2016 Monrovia Partners: G. Fonderson (Exectitivp ChAirm-n T ro.

21 Liberia Electricity Sector Enhancement Projec (LESP) I Indepedent.laitor' Rportd SPlPIpose Flinanchds/alment fo r the_ year eiided 30 Jllne 2015 cti (LESEP) AKER Til.1Y LI1B1E RI A Project Designated Account Statement (IDA-48420) Account Number: Depository Bank: Address: Related Financing Agreement: Currency: United Bank for Africa (Liberia) Limited Broad and Nelson Streets, Monrovia, Liberia Credit No LR United States Dollar Cash Book Balance as per cash book as at July 1, ,316 - Add: Deposit from Client connection through DA-A 156,559 Direct Payment to third parties 287,618 Other657 Less: -Component B Enhancing for power generation 454,393 6,4 Component D'Technical Assistance Adjusted Book Balance as at June 30, Bank B alance per bank Statement as at June 30, ,679 ADD. Erroneous Debit by Bank 3,420 Less: Outstanding checks as at June 30, 2016 a8 Adjusted Bank Balance as at June 30, 2016 Difference L Page 18

22 Liberia Electricity Sector Enhancement Project (LESEP) I ndpedetaaeditorlr' Report anid.spe.cid PRAKFe ttme/lir Jor the- iear ended 30 Junle RAKER illy 'ianm i Project Designated Account Statement (IDA ) Account Number: Eco Bank (Liberia) Depository Bank: Limited Randall and Ashmun Streets, Monrovia, Address: Liberia Related Financing Agreement: Credit No LR Currency: United States Dollar Cash Book Balance as per cash book as at July 1, ,729 Adjusted Book Balance as at June 30, ,729 Deposit from Client connection through DA-A 898,132 Direct Payment to third parties 3,115,304 4,239,165 Less: Component A Distribution Services 484,901 - Component B Enhancing Options for power generation 3,057,035 Component D Technical Assistance 572,432 4,114,367 Adjusted Book Balance as at June 30, Bank Balance per bank Statement as at June 30, ,554 ADD; Erroneous Debit By Bank 20,487 Less: Outstanding checks as at June 30, 2015 (150,245) Adjusted Bank Balance as at June 30, 2016 Difference Page 1 19

23 BAKER TILLY LIBERIA King Plaza 2rd - 41h Floors Broad Street P. 0. Box Monrovia 10 Liberia T: +231 (0) Independent Auditor's Report on Compliance with Laws and Regulations F: We have audited the Special Purpose financial statements of the Liberia Electricity Sector Enhancement Project, which comprise the Project Balance Sheet at June 30, 2016, the Statement of Sources & Uses of Funds for the year then ended and the notes to the financial statements, which include a summary of significant accounting policies and other explanatory notes. We conducted out 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 of material misstatements, and are in compliance with laws and regulations applicable to not-for-profit organizations. As part of obtaining reasonable assurance about whether the financial statements are free of material misstatements, we performed certain tests of compliance with relevant laws and regulations. However, the objective of our audit of the financial statements was not to provide an opinion on the organization's overall compliance with such laws and regulations. Accordingly, we do not express such an opinion. The results of our tests of compliance with laws and regulations indicate that the Liberia Electricity Sector Enhancement Project has complied, in all material respects, with relevant laws and regulations applicable to not-for-profit organizations in Liberia This report is intended for the Board of Directors, Management and Donors of the Liberia Electricity Sector Enhancement Project. X4. 4 A,~ q4 (CieriFed1Ybkc Accoan rn)w December 31, 2016 Monrovia. Partners: G. Fonderson (Executive Chairman), T. Joseph (Manaqinq Partner), A. Fumbah An independent member of Baker Tilly International Page 20

24 Liberia Electricity Sector Enhancement Project (LE SEP) Inde*pendent1 leditorv' Repoli aldlspecial Purpose 1Fian-ial statements.l fo r the-year en1ded -30,11une 20/6 BAKER AKETLY TI!LLY LIBERIA ANNEXES Page 21

25 Liberia Electricity Sector Enhancement Project (LESEP) Indeendnt udior/report and Spccid P111pose Fnnidsaeet oir the ye6ar elided 3 Ojallc 201/6 LIiE AKRTiLY A N Annex 1: IDA Statement of Sources and Uses of funds Actual Expenditure Cumulative During the Since Project Quarter Year To Date Started Sources of funds Opening Balance 183, ,316 Receipts IDA LR fund withdrawals IDA funds received during the period 156,559 1,673,670 Direct payment to third parties 287,618 5,415,377 Reimbursement - 2,364,481 Special commitments - 1,457,769 Others 65,756 65,756 - Total receipts during the period 183, ,250 10,977,053 Component A: Distribution services Distribution transformers - - 2,520,539 Treated wooden poles ,700 Cables and Conductors - - 1,295,481 Tools and Equipment - 1,322,508 Line materials, fuses and cable lugs - - Total Component A - - 5,887,228 Component B: Enhancing options for power generation Supply and installation of thermal power plant - 18,697 3,149,224 Supply of Generation Parts - 435, ,487 ASIA and RAP for thermal plant for fuel system facility ,695 Supervision of supply and installation of thermal power plant - 29,398 Total Component B - 454,393 4,064,804 Component D: Technical assistance Project Management Including training 33,371 64, ,606 Financial Audit 8,000 Total Component D 33,371 64, ,606 Grant Total 31, ,35 10,826,639 A. Excess of receipts over uses of funds A14 t Page 22

26 Liberia Electricity Sector Enhancement Project (LESEP) A RTIL IDA and IDA BAKER THAN *1 1 Bi ER IiA }or the_year onded 30.Jiii2e Annex II: IDA Statement of Sources and Uses of Fund Cumulative Actual Expenditure Since Project During the Quarter Year To Date Started Sources of funds Opening Balance 126, ,728 Receipts IDA LR fund withdrawals IDA funds received during the period 375, ,132 1,791,749 Direct payment to third parties ,304 15,270,511 Total receipts during the period 1,298, ,164 17,062,260 Component A: Distribution Services Transmission & Distribution 194, ,901 2,248,071 Meters and Accessories - - Total Component A 194, ,230 Component B: Enhancing options for power generation Supply and installation of thermal power plant 888,883 2,034,582 11,344,384 Supply of Generation Parts - 997, ,453 ASIA and RAP for thermal plant for fuel system facility ,871 Supervision of supply and installation of thermal power plant - 25, Total Component B , Component D: Technical assistance Technical Assistant for MLME ,821 Technical Assistant for RREA 9,150 36,445 36,445 Consultancy 59, , ,162 Project Management Including Bank Charges 20,777 93,308 93,307 Lease Cost Development Plan 273,89 Total Component D 2, ,432 1,125,525 Grant Total 1,173,271 4,114,367 16, A. Excess of receipts over uses of funds IS2 127Q7 Page 23

27 Liberia Electricity Sector Enhancement Project (LESEP) _W KA KE R TIL LY Independent Auditor' Rcporl alld peia/l Plapose Finan1611cidat u L I B E RI A orte-yevar mnded _30 Jne 2016 Annex III: Schedule of Fund Withdrawals Statement of IDA Fund Withdrawal Amount stated in US$ Date Application Ref Application Amount Type of Fund Source Disbursment 28-Oct-11 LESEP/LEC/ , DA-A IDA Jan-12 LESEP/LEC/003 1,295, Reimbursement IDA Jan-12 LESEP/LEC/ , Direct Payment IDA Jun-12 LESEP/LEC/ , DA-A IDA Sep-12 LESEP/LFC/006 1,176, Direct Payment IDA Sep-12 LESEP/LEC/ , Direct Payment IDA Jun-13 LESEP/LEC/ , Reimbursement IDA Jun-13 LESEP/LEC/ , DA-A IDA Jul-13 LESEP/LEC/ ,84077 Direct Payment IDA Jul-13 LESEP/L,EC/ , DA-A IDA Sep-13 LESEP/LEC/ , Reimbursement IDA Nov-13 LESEP/LEC/016 64, DA-A IDA Mar-14 LESEP/LEC017 74, DA-A IDA Apr-14 LESEPLEC/018 37, DA-A IDA Apr-14 LESEP/LEC/ , Direct Payment IDA Jun-14 LESEP/LEC/ ,156,79 DA-A IDA Sep-14 LESEP/LEC/ , Direct Payment IDA Sep-14 LESEP/LEC/ , Direct Payment IDA epJ4 LESEP/LEC/021 A 152, DA-A IDA Sep-14 LESEP/LEC/ , Direct Payment IDA Oct-14 LESEP/LEC/024A 171, Direct Payment IDA Sep-14 LESEP/LEC/024A 524, SC IDA Oct-14 LESEP/LEC/024A 580, SC IDA Nov-14 LESEP/LEC/ , Direct Payment IDA Nov-14 LESEP/LEC/024B 121, Direct Payment IDA Nov-14 LESEP/LEC/ , Direct Payment IDA Jan-15 LESEP/LEC/025A 145, Direct Payment IDA Jan-15 LESEP/LEC/ , DA-A IDA Feb-15 LESEP/LEC/ , SC-4 IDA Dec-15 LESEP/LEC/ , DA-A IDA Jan-16 LESEP/LEC/ , Direct Payment IDA Mar-16 LESEP/LEC/032 34, DA-A IDA Total reported last quarter 10,911, Sum of Special Commitments: 1,457,769 Sum of Direct Payment: 5,415,377 Sum of Reimbursement: 2,364,481 Sum of Designated Account: 1,673,670 Page 24

28 Lberia Electricity Sector Enhancement Project (LESEP) IndIepend(ent. luc!/tor.repot-l and Speciia/ Prpos e Ifiam-a/satements or ) th6armdedi 30.1ilne 201/6 7"RA AK KEFR RTI`L TI1L,LY L BERIA Statement of IDA Fund Withdrawals Amount stated in US$ Date Application Application Mode of Fund Ref. Amount Disbursement Source 29-May-13 LACEEP/LEC/ , Direct Payment IDA May-13 LESEP/LEC/AF , DA-A IDA Oct-13 LESEP-AF/ , DA-A IDA Oct- 13 LESEP-AF/004 1,285, Direct Payment IDA Nov-13 LESEP-AF/005 24, DA-A IDA Jan-14 LESEP-AF/ , DA-A IDA Mar-14 LESEP-AF/ , Direct Payment IDA Mar-14 LESEP-AF/008 15, DA-A IDA Jan-17 LESEP-AF/ , Direct Payment IDA Jan-17 LESEP-AF/ , Direct Payment IDA Mar-14 LESEP-AF/O 11 70, DA-A IDA Jun-14 LESEP-AF/ , Direct Payment IDA Sep-14 LESEP-AF/ , Direct Payment IDA Sep-14 LESEP-AF/015B 174, DA-A IDA Sep-14 LESEP-AF/014A 275, Direct Payment IDA Sep-14 LESEP-AF/016 1,079, Direct Payment IDA Sep-14 LESEP-AF/ , Direct Payment IDA Oct-14 LESEP-AF/ , Direct Payment IDA Oct-14 LESEP-AF/018A 584, Direct Payment IDA Nov-14 LESEP-AF/022 3,848, Direct Payment IDA Dec-14 LESEP-AF/017A 137, Direct Payment IDA Dec- 14 LESEP-AF/018B 146, Direct Payment IDA Jan-15 LESEP-AF/021 93, DA-A IDA Apr-15 LESEP-AF/ , Direct Payment IDA Apr-15 LESEP-AF/ , Direct Payment IDA Aug- 15 LESEP-AF/ , Direct Payment IDA Jul- 15 LESEP-AF/ , Direct Payment IDA Oct-15 LESEP-AF/ , Direct Payment IDA Oct-201 LESEP-AF/ , Direct Payment IDA Nov- 15 LESEP-AF/028A 129, DA-A IDA Dec-15 LESEP-AF/ , Direct Payment IDA Dec-15 LESEP-AF/030 21, DA-A IDA Dec-15 LESEP-AF/ , Direct Payment IDA Jan-16 LESEP-AF/032 77, DA-A IDA Feb-16 LESEP-AF/033 24, DA-A IDA Mar-16 LESEP-AF/ , DA-A IDA Mar-16 LESEP-AF/ , Direct Payment IDA Mar- 16 LESEP-AF/036 74, DA-A IDA May-16 LESEP-AF/ , DA-A IDA Jun-16 LESEP-AF/ , Direct Payment IDA Jun-16 LESEP-AF/ , DA-A IDA Jun-16 LESEP-AF/ , Direct Payment IDA Total 16,096, Summary of Direct Payment: 14,153, Summary of Designated Account: 1,942, Page ] 25

29 Liberia Electricity Sector Enhancement Project (LESEP) g br thejyear ended 30 June 201/6 I K RTIL TiA LY 111"R]IA Annex IV: Statement of Assets and Equipment as at 30 June 2016 Amount stated in US$ Annex 4: Statement of Assets and Equipment(IDA 48420) Asset Date of Asset Asset Asset Identification Asset Source of Receeipt E Description Value/Cost Number Location Assignee Funding 22-Dec-12 Office quipt t HP HOfficeJet WB-LEC LR Accounts Department ChiefAccountant IDA DA-A 10-Jan-12 Office Equipment Lap Top WB-LEC IR Accounts Department Chief Accountant IDA48420-DA-A 0-Jul-12 Officeqipment CellPhone 9, WB-LEC LR Employees of LEC Employees of LEC IDA48420-DA-A 19-Jul-12 Office Equipment Cell Phone WB-LEC LR Employees of LEC Employees of LEC IDA DA-A 12-Dec-12 Office Furniture Book Shelve WB-LEC LR Procurement Procurement Specialist IDA DA-A 2-Dec-15 Office quipment HP Laserjet Pro 3, WB-LEC LR Project Officer Finance Officer IDA DA-A I Office Euipment HIPLaptop WB-LEC LR Project Officer Finance Officer IDA DA-A Electrical Materials Tools, Equipment& otainents 1,307, WB-LEC LR WareHouse Warehouse IDA DA-A Electrical Materials Instruments and Protective Clothing 135, WB-LEC LR WareHouse Warehouse IDA DA-A Spare Parts Cummings Ggerator Parts 1,484, WB-LEC LR WareHouse Warehouse IDA DA-A Transformers Single & Thre Phase Transformers 725, WB-LEC LR WareHouse Warehouse IDA DA-A Transformers Single & Three Phase Transformers 1, WB-LEC LR WareHouse Warehouse IDA DA-A Eectrical Materials Wooden Poles 748, WB-LEC LR WareHouse Warehouse IDA DA-A Electrical Materials Spare Parts 585, WB-LEC LR WareHouse Warehouse IDA48420-DA-A 6, Annex 4: Statement of Assets and Equipment (IDA 50550) Asset Date of Asset Asset Asset Identification Asset Source of Receeipt Tyle Description Value/Cost Number Location Assignee Funding 22-Dee-12 Electrical Materials Cables & Conductors 1,379, WB-LEC R Bushind Island Planning Deparment IDA DA-A 10-Jan-12 Electrical Materials Meters & Accessories 731,15930 WB-LEC LR Bushrod Island Planning Department IDA DA-A 10-Jul-12 Eectical Materials Generator Parts 420, WB-LEC LR Bushrod Island Plannin Department IDA DA-A 2,530, Page 26

30 Liberi a Electricity Sector Enhancement Project (LESEP) BAK ER TIlLY Idilo1' Reporl ad P e tli Id BERI A or, th)ejyear ended 30.jaie 206 Annex V: Funds Disbursement Status Statement of IDA funds disbursement status Amount stated in US$ ItemNo. Category Original Funds Disbursed Undisbursed Outstanding Available Allocation Balance Conunitments Balance 1 Goods, Works, Cons & Opr Cos Part Al 5,673705, , (213,522.96) (267,872.96) 2 Good, Works, Cons & Opr Cos Part B 3,359, ,064, (705,041.38) (705, Good, Works, Cons & Opr Cos Part D 966, , , , , TOTAL 10,000, ,826, (826,528.72) 54, (935,228.72) Statement of IDA funds disbursement status Amount stated in US$ Item No. Category Original Funds Disbursed Undisbursed Outstanding Available Allocation Balance Commitments Balance 1 Goods, Works, Cons & Opr Cos Part A 7.725,975 2,979,230 4,746, ,559 4,062, Good, Works, Cons & Opr Cos Part B 13, ,832, , ,737 (58,549,79) 3 Good, Works, Cons & Opr Cos PartD* ,112, , (393,881A2) TOTAL 22,000,000 16,924,593 5,075,407 1,465,652 3,609,755 Page I 27

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