Audit of the Financial Statement of the "Conseil National de la Recherche Scientific" CAPWATER Project No. P117-170 Beirut - Republic of Lebanon For the period from January 1, 2015 till September 30, 2015 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Talal Abu-Ghazaleh & Co Member of Talal Abu-Ghazaleh Organization
Index Contents: Page Independent Auditor's Report 1 Project Statement of Cash Receipts and Payments 2 Notes to the Project Statement of Cash Receipts and Payments 3-11
Talal Abu-Ghazaleh & Co. TAGIAudion Global Company for Auditing and Accounting 4. a d.ll L I Alliance with Russell Bedford International More than 120 member & correspondent firms and 280 offices in Europe, the Americas & Asia-Pacific Societe Civile (R.C. 67) oi9u -l (IV W 1. Srga Certified Public Accountants Independent Auditor's Report To Conseil National de la Recherche Scientific CAPWATER Project No. P117-170 Beirut - Republic of Lebanon World Bank Grant No. TF091513 We have audited the accompanying financial statement compromising of the Statement of Cash Receipts and Payments by category of CAPWATER for the Period from January 1, 2015 till September 30, 2015. We have also audited compliance with the laws, regulations, guidelines and provisions governed by the Grant Agreement for the period from January 1, 2015 till September 30, 2015. We conducted our audit in accordance with International Standards on Auditing (ISA). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement and about whether the First Municipal Infrastructure Project has complied with laws, regulations, guidelines and provisions governed by the Grant Agreement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statement. An audit also includes assessing the accounting principles used as well as evaluating the overall statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our Opinion: a. the project Financial Statement (PFS) present fairly, in all material respects, the cash receipts and payments of the First Municipal Infrastructure Project for the period from January 1, 2015 till September 30, 2015 and showing cumulative balances as at December 31, 2014 in accordance with the International Public Sector Accounting Standards (IPSAS), under the cash basis of accounting; b. internal control over financial reporting involved in the preparation of replenishments, direct payments, payments through special commitments, and reimbursements i.e. expenditures reimbursed on the basis of statements of Expenditures can be relied upon to support the related withdrawals for the period from January 1, 2015 till September 30, 2015; c. The project was in all material respects in compliance with the laws, regulations, guidelines and provisions governed by the Gran greement. Waref M. Kumayha (Liccuse # 1927) Beirut on October 28, 2015 Sanayeh-Al Mansour Bldg. N'IUMER0' Fll LZ. - _itaahll Tel.: +961 1 754 222 u FORUM OF FIRNS + i I t V Fax: +961 1754 222 tagi.com +vl tvat :USU P.O.Box: 11-7381, Beirut, Lebanon Tageo.bierut@tagi.com 4.ALIi L 4Lj 4y 1 1 v VA I :
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Note 1: Project Purpose: Notes to the Project Statement of Cash Receipts and Payment Conseil National de Ia Recherche Scientific CAPWATER Project Grant No. P117-170 For the period from January 1. 2015 till September 30, 2015 (Amounts are expressed in US Dollar) The purpose of the Agreement states that the World Bank grants the Lebanese Republic a contribution of maximum US$ 1,050,000 as participation towards the realization of the project as per the description of the project and the budget. The Middle East North Africa (MENA) program by the World Bank, achieve improved water resources management and planning across the Mediterranean countries including Lebanon. The project name is "Regional Coordination on Improved Water Resources Management and Capacity the Lebanese part of the project was nominated "CAPWATER ". The World Bank has partnered with NASA and USAID to deliver, implement and operationalize a set of water management tools, the Water Information Systems Platform (WISP). Lebanon will use NASA Earth Science products and tools customized to address the country's unique requirements and capabilities for improved water resources management. NASA will develop and transfer WISP tools and data sets to the CNRS as implementing agency in Lebanon. Below is a brief description of the projects' objectives. Project Objective 1 Improve Lebanon capacities in the assessment of climate change impacts on Lebanon's water resources Project Objective 2 Improve Lebanon capacities in drought assessment, monitoring and forecasting and strengthen Lebanese capacities in flood and fire detection and modeling. Project Objective 3 Capacity building in crop mapping, assessment of evapotranspiration and yield prediction. Project Objective 4 Field crop yield prediction of select water intensive crops. 3
Note 2: Designated Account Reconciliation Statement: USD 1. Total Amount Advanced by the World Bank 150,000 2. Less: Total Amount Recovered by the World Bank 149,564.92 3. Outstanding Amount Advanced to SA/DA (Subtract 1-2) 435.08 4. Amount in SA/DA as per attached Bank Statement 435.08 5. Amount Claimed - 6. Amount Claimed in Previous Application but not yet Credited to SA/DA as per Bank Statement Total of Pervious Applications not yet Credited 7. Amount Withdrawn from SA/DA not yet Claimed for Replenishment - 8. Foreign Exchange difference 9. Total Advance Documented (Add: 4+5+6+7) 435.08 10. Explanation of any Difference Between Amounts in Lines 3 and 9 4
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* Details of expenses for operating costs: * workshops and supervision missions = 27,427 USD Expenses related 5,082 USD Project management 20,000 USD Auditing services 6,050 USD field trips = 9,816 USD 68,375 USD Note 12: Taxes due for ministry of finance This account represents the value of contracts stamps duty taxes related to contractors that were not paid since it is not allocated in the project's budget by the World Bank. * Attached: 1- Commitment table by category of project. 2- List of contracts and Quantities of equipment (Hardware and Software). 3- List of signed contracts (Technical assistant, project manager and consultant). 4- Bank statement. 11
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