SZambia. inspired Around the World. Chartered Accountants

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1 Chartered Accountants SZambia CONCERNi WOR.DWID E ZAMBI A REPOR T ANAD FlIANAlL STATEMENTS For the year ended 31 December 2017 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized inspired Around the World

2 FINANCIAL STATEMENTS CONTENTS PAGE Management information and professional advisors 1 Statement of management responsibilities 2 Report of independent auditors 3-5 Statement of Income and Expenditure 6 Statement of financial position 7 Statement of cashflows 8 Notes to the financial statements 9-17 Appendix I - World Bank funded grant project financial statements 18

3 FINANCIAL STATEMENTS Management information and professional advisors Management Danielle Harvey - Country Director Marie Rongeard - Programmes Director - Upto July 2017 Sospeter Baitwa - Director Systems - Upto July 2017 Mbeluko Phiri - Country Financial Controller - Upto 31 December 2017 Nangana Simwinji - District Programme Coordinator - Upto July 2017 Libakeni Nabiwa - District Programme Coordinator - Upto June 2017 Richard Mwape - District Programme Coordinator Registered Office Plot No. 155, Al Jahazi Compound Kabulonga Road Ibex Hill P.O.Box Lusaka Auditors HLB Zambia 2 nd Floor Saturnia House Dunduza Chisidza Crescent Longacres P.O Box Lusaka. Main Bankers Standard Chartered Bank Zambia PLC Manda Hill Branch P.O Box Lusaka. 1

4 STATEMENT OF MANAGEMENT RESPONSIBILITIES The Societies Act of Zambia requires the Management to prepare financial statements for each financial year that give a true and fair view of the state of the Organisation and of the surplus or deficit for that year. In preparing those financial statements, the Management have selected suitable accounting policies and then applied them consistently, made judgements and estimates that are reasonable and prudent and followed the applicable accounting standards. The Management are responsible for ensuring that the Organisaiton keeps proper accounting records which disclose with reasonable accuracy at any time the financial position of the Organisation. Management is also responsible for safeguarding the assets of the Organisation and for taking reasonable steps for the prevention and detection of fraud and other irregularities. The Management of Concern Worldwide Zambia are of the opinion that: * the statement of financial position is drawn up so as to give a true and fair view of the state of the affairs of the Organisation as at 31 December 2017; and * the statement of income and expenditure is drawn up so as to give a true and fair view of the surplus for the year ended 31 December 2017; * there are reasonable grounds to believe that the Organisation will be able to pay its debts as and when they fall due. * the financial statements have been prepared in accordance with the Generally Accepted Accounting Policies (GAAP) and in a manner required by the Societies Act of Zambia. Management is responsible for keeping proper accounting records, which disclose with reasonable accuracy, at any time, the financial position of the Organisation. They have a general responsibility for taking such steps as are reasonably available to them to safeguard the assets of the Organisation and to prevent and detect fraud and other irregularities. Management are also responsible for the Organisation's system of internal financial control. These controls are designed to provide reasonable, but not absolute, assurance as to the reliability of the financial statements and to adequately safeguard, verify and maintain accountability of assets, and to prevent and detect misstatement and loss. Nothing has come to the attention of Management to indicate that any material breakdown in the functioning of these controls, procedures and systems has occurred during the year under review. On behalf of Management by: Dani e y John Chituwo Country irec or Country Finance Manager 2

5 U REPORT OF THE INDEPENDENT AUDITORS TO THE COUNCIL MEMBERS OF Opinion We have audited the financial statements of Concern Worldwide Zambia ("the Organisation"), which comprise the statement of financial position as at 31 December 2017, and the statement of income and expenditure, statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies. In our opinion, the financial statements give a true and fair view of the financial position of Concern Worldwide Zambia at 31 December 2017, and of its financial performance and cash flows for the year then ended in accordance with accounting policies and basis of preparation set out on pages Basis for Opinion We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Organisation in accordance with the International Ethics Standards Board for Accountants' code of ethics for Professional Accountants (IESBA Code) that are relevant to our audit of the financial statements, and we have fulfilled our other responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Material uncertainty related to going concern As discussed in Note 15 to the financial statements, the Organisation is in the process of winding up its Zambia Operations and the cassation of operations is imminent. As a result, the Organisation has changed its basis of accounting for periods subsequent to 31 December 2017 from the going concern basis to a liquidation basis. Our opinion is not modified in respect of this matter. Responsibilities of Management for the financial statements Management is responsible for the preparation of the financial statements in accordance with the accounting policies, and for such internal control as Management determines necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, Management is responsible for assessing the Organisation's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless Management either intend to cease operations, or have no realistic alternative but to do so. Those charged with governance are responsible for overseeing the Organisation's financial reporting process. Global in Reach, Local in Touch 2" Floor Saturnia House Plot 6392 Dundza Chisidza Road, Longacres, Lusaka, Zambia. WTelephone RMobile: R shuko@accamail com shuko@hlb co zm Website: HLB Zambia is an independent member of HLB International. A world-wide network of accounting firms and business advisers HLB International Limited registered in England No Limited by Guarantee 3

6 U Auditor's responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Overview of the scope of the audit As part of an audit in accordance with ISAs, we exercise professional judgement and maintain professional skepticism throughout the audit. We also: * Identify and assess the risks of material misstatements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. * Obtain an understanding of internal controls relevant to the audit 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 accounting controls. * Evaluate the completeness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by managers. * Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, determine whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Project's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our auditor's opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal accounting controls that we identify during our audit. 4

7 U Report on other matters We are required to verify that the World Bank funded grant project financial statements (PFSs) have been prepared in accordance with the agreed accounting standards and give a true and fair view of the financial position of the project at the relevant date and of resources and expenditures for the financial year ended on that date, following our review we report as follows: * according to the information and explanations given to us, the Project Financial Statements have been prepared in accordance with the agreed accounting policies; * all expenditures reviewed, based on a representative selection, are supported by original bills, duly cancelled, stamped and signed; and * Internal, appropriate and approved procedures for authorising disbursements have been adhered to. HLB Zambia Chartered Accountants UKO NDHLoU REGISTERED AUDITORS Shuko Ndhlovu FCCA, FZICA CIMIA FCCA FZIA D DON to 9 APR 2018 Partner P.Bx3 O AUD/F O LuA e 32232, 5

8 STATEMENT OF INCOME AND EXPENDITURE Notes K K Income Co Funder 4 25,532,649 29,443,390 Project Sponsorship 5 (846,636) 371,096 General Donations 7 179,638 8,112,176 Other Income 6 298,537 67,003 Total Incoming Resources 25,164,188 37,993,665 Expenditure Direct Project Costs 8 24,305,720 34,808,054 Program Support Costs 9 2,215,746 4,410,230 Total Resources Expended 26,521,466 39,218,284 Deficit for the year (1,357,278) (1,224,619) Surplus at beginning of year 1,782,546 3,007,165 Conversional FX Gain/Loss Surplus at end of year 425,268 1,782,546 Approved on behalf of Concern Worldwide Zambia by: Danielle Harvey Country Director John Chituwo Country Finance Manager 6

9 STATEMENT OF FINANCIAL POSITION As at 31 December Notes K K Current Assets Receivables and prepayments ,066 1,499,581 Cash and Bank 11 1,625,759 3,581,056 1,924,825 5,080,637 Current Liabilities Accruals and other payables 12 1,401,490 2,354,509 Net Current Assets 523,335 2,726,128 Long Term Liabilities Cessation Benefit Provision 13 98, ,582 Total Net Assets 425,268 1,782,546 Funded by: Co Funder 14 1,891, ,697 Project Sponsorship 14 18, ,230 General Donations 14 (1,484,913) 263, ,268 1,782,546 Approved on behalf of Concern Worldwide Zambia by: Danielle H Country Director John Chituwo Country Finance Manager 7

10 STATEMENT OF CASHFLOWS Notes K K Operating activities Deficit for the year (1,357,278) (1,224,619) Adjustments for items not involving movement of funds: Foreign currency difference 14 (1,357,278) (1,224,619) Movement on working capital: Decrease (Increase) in receivables and prepayments 10 1,200,515 (508,165) (Decrease) increase in accruals and other payables 12 (953,019) 20,416 (Decrease) Increase in cessation benefit provision 13 (845,515) 339,595 Net cash outflows from operating activities (1,955,297) (1,372,773) Cash and cash equivalents at the beginning of the year 3,581,056 4,953,829 cash and cash equivalents at the end of the year 11 1,625,759 3,581,056 8

11 NOTES TO THE FINANCIAL STATEMENTS 1. BACKGROUND Concern Worldwide Zambia is registered and domicle in Zambia under the Socieities Act. The address of the Organisation's registered office and nature of business has been disclosed on the management information and professional advisors page. The Organisation is a non-denominational voluntary organisation devoted to the relief, assistance and advancement of people in need developed areas, focusing on building the capacity of local people to manage their own development. The objectives of the Organisation are implemented out through field operations located in various parts of the country. 2. LEGAL STATUS Concern Worldwide is a company limited by guarantee and not having a share capital. It is incorporated in Dublin, Ireland and registered with the Irish Charity Regulatory based in Ireland Dublin. The guarantee of the members in Ireland is limited to Euro 6.35 each. The guarantee continues for one year after membership ceases. The status of Concern Worldwide Zambia is governed by the NGO Act and the Societies Act of Zambia 3. STATEMENT OF ACCOUNTING POLICIES The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the financial statements of Concern Worldwide Zambia. 3.1 Basis of preparation The financial statements have been prepared in accordance with the Organisation policies and in a manner required by the Societies Act of Zambia for the purpose of reporting to donors as required under the terms of co-funding agreements. The financial statements have been prepared on a cash-basis of accounting with respect to income and on an accruals basis with respect to expenditure, in accordance with the accounting policies as set out below. These accounting policies are in accordance with the policies and guidelines of Concern Worldwide (the Parent). In relation to the accounting treatment of the acquisition of property and equipment and stocks, Concern Worldwide Zambia expenses these immediately to the statement of income and expenditure at acquisition. This is deemed to be a more appropriate accounting treatment than the treatment normally accorded to such transactions in Generally Accepted Accounting Principles (GAAP), which would require these transactions to be recorded as assets subject to annual accounting charges as these assets are utilised or consumed. These policies are in line with the normal accounting policies applied by International Non-Government Organisations (NGOs), which are observed due to their working environment. As higlighted in Note 14 to the financial statements the financial statements have been prepared on a breakup basis as the Organisation intends to cease operations by 30 June Income Incoming resources are recognised by inclusion in the statement of income and expenditure only when received in the form of cash or of other assets, the ultimate cash realisation of which can be assessed with reasonable certainty. Income includes funds received from Co-funders as well as additional funding provided by Head Office. 9

12 NOTES TO THE FINANCIAL STATEMENTS (continued) 3. STATEMENT OF ACCOUNTING POLICIES (continued) 3.3 Expenditure Expenditure is recognised and recorded on an accruals basis. Expenditure is analysed between direct program costs and program support costs. The costs of each programme are separately accumulated and are disclosed and analysed according to their major components. Program support costs, which may not be attributed directly to any one programme, have been allocated in proportion to the estimated benefits received. 3.4 Foreign currencies The financial statements are prepared in Zambian Kwacha (K), which is considered to be the functional currency of Concern Worldwide Zambia. Transactions denominated in other currencies are translated into Zambian Kwacha at the rate of exchange prevailing at the average monthly rate or at a contracted rate. Monetary assets denominated in foreign currencies have been translated into Zambian Kwacha at the exchange rates ruling at the reporting date or the contracted rate. The resulting gains or losses are dealt with in the statement of income and expenditure. 3.5 Income tax The Organisation is exempted from Income Tax under paragraph 6 (1) of the second schedule of the Income Tax Act of the Republic of Zambia effective 1 January Property and equipment All items of property and equipment are expensed to the statement of income and expenditure in the year of acquisition. 3.7 Inventories All inventory items are expensed to the statement of income and expediture on acquisition. 3.8 Prepayments Prepayments are valued at the amount prepaid net of any trade discounts due. 3.9 Cash at bank and in hand Cash at bank and in hand is comprised of cash on deposit at banks requiring Less than 3 months' notice of withdrawal. These are carried at amortised cost Payables, accruals and provisions Payables and provisions are recognised where there is a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be reliably measured and estimated.payables and provisions are normally recognised at their settlement amount after allowing for any trade discounts due and at their present value where the time value of money is deemed significant. 10

13 NOTES TO THE FINANCIAL STATEMENTS (continued) 3. STATEMENT OF ACCOUNTING POLICIES (continued) Payables, accruals and provisions (continued) Payables comprise of accruals and trade payables arising from programme activities Funds already received from donors that do not meet the criteria for recognition as income, are shown as creditors at the reporting date Cessation benefit Provision is made for commitments to local permanent staff to provide service related payments in the event of resignation or retirement or termination of employment. Termination arises when programmes are completed or when employee requirements change. Amount payable are linked with length or service. Membership of the statutory National Pension Scheme ('NAPSA") is compulsory and monthly contributions by both employer and employees are made. The employer's contribution is accounted for in the statement of income or expenditure as it arises Donations in Kind Donations /materials received in kind during the financial period represent all non-monetary donations. These are not recorded on the financial statements, but included as an appendix to the audit report, where applicable. 4. CO- FUNDERS Amount in Date Original Original Exch. Amount in GL Donor Received Currency Currency Rate Currency Co Funder I K DFID AID MATCH ZAMBIA 31-Jan-17 GBP 126, ,570,234 BG135 AID MATCH ZAMBIA 31-Mar-17 GBP 221, ,572,328 BG135 AID MATCH ZAMBIA 30-Jun-17 GBP 136, ,645,581 BG135 AID MATCH ZAMBIA 30-Sep-17 GBP 55, ,879 BG135 Women Empowermnt Zambia 29-Dec-17 GBP 101, ,345,831 BG159_Income 28-Feb-17 GBP 664, ,919,522 GRT.SAVETHECHILDREDEC16E Apr-17 GBP (277,955) (3,219,625) BG159 DIRECT CASH ZAMBIA 30-Jun-17 GBP 892, ,802,815 GRT.5TCIJUN17E Jul-17 GBP (543,992) (6,353,073) GRT.STCIE BG Dec-17 GBP (211,795) (2,810,244) BG159:Consortialnc.TFSCFE Dec-17 GBP (27,794) (368,790) BG126 NEEP ZAMBIA 31-Aug-17 GBP 9, ,875 UNHCR LIP UH036 FY2016 ret.fun 30-Apr-17 EUR (75,427) (756,438) $277, World Bank 31-Mar-17 USD 277, ,650,932 $143, World Bank 31-Mar-17 USD 143, ,370,285 $ World Bank COPS WBO16 30-Jun-17 USD 218, ,047,639 $ Trust Funds World B 30-Nov-17 USD 311, ,109,973 Subtotal carried forward 1 22,322,724 11

14 NOTES TO THE FINANCIAL STATEMENTS (continued) 4. CO FUNDERS (continued) Amount in Date Original Original Exch. Amount in GL Donor Received Currency Currency Rate Currency Subtotal brought forward 22,322,724 $ Trust Funds World B 30-Nov-17 USD 233, ,330,339 Bank:Carelnt.USDchq10,955_ Jan-17 ZMW 108, ,455 ChqdepositCarelnt$6,895_ Mar-17 ZMW 65,075-65,075 Bank:GrantfromCareint_ JuL-17 ZMW 86,845-86,845 Funds Receipts - Care Inter 26-Sep-17 ZMW 51,204-51,204 Care Inter MCDP Implem 30-Nov-17 ZMW 60,593-60,593 Income-Sale of Boat (IE) 30-Sep-17 ZMW 80,000-80,000 Transfer from UNHCR 8-Feb-17 ZMW 442, ,995 UNHCR:Return of unspent funds 29-Aug-17 ZMW (15,581) - (15,581) Total 25,532,649 K 5. PROJECT SPONSORSHIP Amount in Date Original Original Exch. Amount in GL Project Sponsorship Received Currency Currency Rate Currency $98713 Accenture unspent T/T M 30-Nov-17 USD 98, (986,982) PS232 Accenture $9,445 T/F Mal 29-Dec-17 USD 9, (94,780) PS October 2017 Greg Heylin 30-Nov-17 EUR (20,000) ,126 Total (846,636) 12

15 NOTES TO THE FINANCIAL STATEMENTS (continued) - 6. OTHER INCOME Sumary of other income K K Disposal of assets 298,537 Rental Income WFP - 62,580 Sundry income - 4,423 Total 298,537 67, GENERAL DONATIONS Transfers from Head Office Expenditure paid by Head 23,992,148 32,944,224 LESS: Transfers to Head office Income received in Head (23,812,510) (24,832,048) from Co-funders and project sponsors TOTAL 179,638 8,112, EXPENDITURE Direct Program Direct Program Total Cost project costs Support Cost T project costs Support Cost K K K K K K Livelihood 6,969, ,823 7,596,847 10,048,641 1,091,626 11,140,267 Health 207,234 19, , ,478 83, ,444 Integrated 17,129,462 1,568,775 18,698,237 24,134,935 3,234,638 27,369,573 Total 24,305,720 2,215,746 26,521,466 34,808,054 4,410,230 39,218,284 In accordance with the accounting policy set out in note 3.3, programme support costs, which may not be attributed directly to any one programme, have been allocated in proportion to the estimated benefits received. A further analysis of these programme support costs is prepared in Note PROGRAM SUPPORT COSTS K K Transport 626,126 1,368,692 Administration 1,589,620 3,041,538 Total 2,215,746 4,410,230 13

16 NOTES TO THE FINANCIAL STATEMENTS (continued) 10. RECEIVABLES AND PREPAYMENTS K K Sundry receivables 207, ,685 Prepaid rent 59, ,876 Prepaid expense 31, ,072 Unconfirmed recharges - 154, ,066 1,499, CASH AND BANK Cash at Bank 1,597,124 3,505,304 Cash on hand 28,635 75,752 1,625,759 3,581, ACCRUALS AND OTHER PAYABLES Accrued expenses 983,991 2,085,355 Other payables 417, ,154 1,401,490 2,354, CESSATION BENEFIT PROVISION - - At the beginning of the year 943, ,987 Provisions made during the year 415, ,572 Payments made during the year (751,376) (319,977) Adjustments to opening balance (509,931) Foreign exchange gains - At the end of the year 98, ,582 14

17 NOTES TO THE FINANCIAL STATEMENTS (continued) 14. FUNDING OF PROGRAMMES IN Kwacha Exchange Balance at 1- Expenditure Gain I Prior year Balance at Jan-2017 Cash received charge (Loss) adjustment 31-Dec-2017 Co funders Irish Embassy - 80,000 (57,396) - 22,604 DFID (SUN intiative) (11,496) 372,173 (212,702) 5, ,246 DFID (NEEP/PATH) (110,919) 116,875 1,468 (7,424) DFID (AID MATCH) (2,858,236) 7,812,854 (4,357,637) (102,002) (1,603,833) (1,108,854) DFID (DiRECT/Zambia EL Nino) 2,458,839 5,970,604 (6,860,138) 75,580 (54,098) 1,590,787 UNCHR ,076,228 (756,438) (155,644) (4) (164,142) UNCHR ,209 - (1) (68,208) UNCHR ,391 (427,412) World Bank (192,437) 11,509,167 (9,943,919) (139,304) - 1,233,507 Concern USA 254,080 - (269,208) (5,959) 21,087 Secure Nutrition 49,430 - (46,934) (2,496) - Sub total 733,697 25,532,626 (22,330,990) (167,426) (1,876,618) 1,891,289 Project Sponsorship Accenture 548,479 (1,081,762) - 12, ,755 1 Greg Heylin 236, ,126 (451,403) (1,583) - 18,891 Sub total 785,230 (846,636) (451,403) 10, ,755 18,892 General Donations 263, ,198 (3,739,073) 156,454 1,355,889 (1,484,913) TOTAL 1,782,546 25,164,188 (26,521,466) (26) ,268 15

18 NOTES TO THE FINANCIAL STATEMENTS (continued) 14. FUNDING OF PROGRAMMES IN (continued) (for the year ended 31 December 2016) Kwacha Balance at Cash Expenditure Exchange Balance at 1-Jan-2016 received charge Gain / (Loss) 31-Dec-2016 Co funders Irish Aid - IAPF 1 8,956,973 (8,257,053) (699,921) Irish Aid recovery 1,300,277 (285,207) (873,148) (141,922) DFID (SUN intiative) (35,624) 590,310 (703,015) 136,833 (11,496) DFID (NEEP/PATH) (243,379) 176,059 (70,173) 26,574 (110,919) DFID (AID MATCH) (2,437,806) 4,868,411 (7,146,436) 1,857,595 (2,858,236) DFID (DiRECT/Zambia EL Nino) 6,107,751 (3,845,982) 197,070 2,458, UNCHR ,575,680 (2,499,452) - 1,076,228 UNCHR 2015 (18,513) 86, ,209 World Bank 3,562,692 4,311,400 (8,340,334) 273,805 (192,437) Start Fund - 557,998 (437,135) (120,863) Concern USA - 497,293 (203,349) (39,864) 254,080 TOPS (3) - 3 Secure Nutrition 54, (5,218) 49,430 Sub total 2,182,292 29,443,390 (32,376,077) 1,484, ,697 Project Sponsorship Accenture 3,171,382 - (2,479,131) (143,772) 548,479 Kerry Group 1,306,966 - (1,246,700) (60,266) Greg Heylin 358, ,079 (310,408) (62,168) 236,751 Electric Aid - 120,017 (113,957) (6,060) Sub total 4,836, ,096 (4,150,196) (272,266) 785,230 General Donations (4,011,723) 8,179,179 (2,692,011) (1,211,826) 263,619 TOTAL 3,007,165 37,993,665 (39,218,284) - 1,782,546 16

19 NOTES TO THE FINANCIAL STATEMENTS (continued) 15. GOING CONCERN During the year ended 31 December 2016 the Organisation decided to cease its operations in Zambia as most of its projects were coming to an end. The Organisation closure process is scheduled to take place subsequent to the period ended 30 June The financial statements have been consequently prepared on a break up basis were all assets and liabilities have been presented at amounts approximate to their net realisable values. 16. CONTINGENT LIABILITIES There were no known material contingent liabilities at 31 December 2017 and APPROVAL OF FINANCIAL STATEMENTS The management approved these financial statements on 3 April

20 WORLD BANK FUNDED GRANT PROJECT FINANCIAL STATEMENTS APPENDIX I K K Income Opening fund balance from 1 January (192,437) 3,562,692 Income from World Bank 11,509,167 4,311,400 Total incoming resources 11,316,730 7,874,092 Expenditure Program expenditure (9,943,919) (8,340,334) Foreign exchange gains (losses) (139,304) 273,805 Closing balance prior to currency conversion gains or loss 1,233,507 (192,437) Conversional FX Gain/(Loss) - - Closing balance at 31 December 1,233,507 (192,437) 18

21 Formed in 1969, HBInter.national is a worid-wide netor of:ideenet professional accounting firm and busýines advisers repeented in ove 1:00 countris., Shuko Ndhlovu FCCA, CMIIA, FZICA HLB Zambia Plot 6392 Dunduza Chisidza Road Longacres Lusaka Tel: External Audit. Internal Audit. Tax Compliance Cel: Plot 6392 Dunduza Chisidza Road Directors: Shuko Ndhlovu FCCA, FZICA 2 nd Floor Saturnia House, Longacres Masuzyo Mulenga ACCA, AZICA P.O Box Jonathan Mwale ACCA, FZICA LUSAKA, Zambia 2 Mobile 1: / Landline 1: E shuko@accamail.com / shuko@hlb.co.zm Web: Inspired to Work Together.