THlE WORLD BANK 111 YOUTH EMPLOYMENT AND SOCIAL SUPPORT OPERATION (YESSO) (FEDERAL MINISTRY OF FINANCE) FINANCIAL STA TEMENTS FOR THE PERIOD ENDED 3 1 ST DECEMBER, 2016 AUDITED BY Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized OFFICE OF THE AUDITOR-GENERAL FOR THE FEDERATION Plot 273, Central Business District, Abuja
YOUTH EMPLOYMENT AND SOCIAL SUPPORT OPERATION FINANCIAL STATEMENT FOR THE YEAR ENDED31ST DECEMBER 2016 TABLE OF CONTENTS CONTENT PAGE Operation Information Profile 2 Report of Auditors 3 Statement of Financial Position 4 Statement of Financial Performance 5 Statement of Changes in Net Assets / Equity 6 Statement of Cash flow 7 Notes to the Financial Statements 8-13 1
YOUTH EMPLOYMENT AND SOCIAL SUPPORT OPERATION OPERATION MANAGEMENT TEAM 1. Mr. Peter M. Papka National Coordinator (Up to 3 0 th June 2016) 2. Mr. Andrew David Adejo National Coordinator (From July 2016) 3. Mr. Bamidele 0. Akinola Project Accountant 4. Mr. Anthony N. Kalu Head of Services (Up to 3 0 th June 2016) 5. Mrs. Hajara Umar Sanni Head of Operation 6. Mrs. Roseline Olaomi Team Leader, YESSO NDE BANKERS: UNITED BANK OF AFRICA PLC. ZENITH BANK PLC PROJECT AUDITORS Office of the Auditor General for the Federation. Audit House Plot 273, Samuel Ademulegun Street, Central Business District, P.M.B. 128, Garki, Abuja, Nigeria. 2
OFFICE OF THE AUDITOR-GENERAL FOR THE E DEPARTMENT HEADQUARTERS: LAGOS OFFIC Audit House, 5, Sir Mobola B Plot 273, Samuel Ademulegun Street, P.M.B. 12503 Central Business District, Lagos, Nigeria P.M.B. 128,Garki-Abuja, Nigeria Tel:+234(1) 2632335 0 NIE%0 tion Ref No... THE PRINCIPAL OFFICERS (MANAGEMENT), REPORT OF THE INDEPENDENT AUDIT ON THE FINANCIAL STATEMENT OF THE YOUTH EMPLOYMENT AND SOCIAL SUPPORT OPERATION (YESSO) (WORLD BANK ASSISTED) We have audited the Financial Statements of the Youth employment and Social Support Operation (YESSO) (World Bank Assisted) for the year ended 3 1 st December, 2016 as set out on pages 4 to 7 which have been prepared on the basis of the Accounting Policies set out in Note 1 on page 8-13. MANAGEMENT'S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS The Management of the Project is responsible for the preparation and fair presentation of the Financial Statements in accordance with the International Public Sector Accounting Standards (IPSAS) accrual and also for instituting such internal controls as the Management determines it necessary to enable the Financial Statements that are free from material misstatement. AUDITORS' RESPONSIBILITY Our responsibility is to express an independent opinion on the Financial Statements based on our audit. We conducted the audit of Youth employment and Social Support Operation (YESSO) in accordance with the International Standards of Supreme audit Institutions (ISSAls) as promulgated by the International Organisation of Supreme Audit Institutions (INTOSAI). These standards require that we comply with ethical requirement, plan and perform the audit so as to obtain reasonable assurance about whether the Financial Statements free from material misstatements, whether caused by fraud or other irregularity or error. The procedures selected for obtaining assurance and evidence to support audit opinion depends on the auditors' judgment, including assessment of the risk of material misstatement of the Financial Statements. In making those risk assessment, we considered the Internal Control relevant to Youth employment and Social Support Operation (YESSO) preparation and fair presentation of the Financial Statements. We also evaluated the appropriateness of the accounting policies used and the reasonableness of accounting estimates made by Management, as well as 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. OPINION In our opinion, the Financial Statements, which are in agreement with the books of account, present a true and fair view of the financial position of Youth employment and Social Support Operation (YESSO) (World Bank Assisted) as at 3 1 st December, 2016, and of its performance of its operations, changes in net assets, its cash flows for the year ended 3 1 st December, 2016 and have been prepared in accordance with the International Public Sector Accounting Standards (IPSAS) accrual, accounting principles generally accepted in Nigeria and in the manner required by the World Bank. I. A. AD YE For: Auditor-General for the Federation st June, 2017 2 1
YOUTH EMPLOYMENT AND SOCIAL SUPPORT OPERATION (YESSO) STATEMENT OF FINANCIAL POSITION AS AT 31ST DECEMBER 2016 ASSETS NOTES 2016 2015 CURRENT ASSETS N N Cash and Cash equivalent 3 5,539,696,457 4,703,827,711 Receivables 1,171,160 - Total Current Assets (a) 5,540,867,617 4,703,827,711 NON CURRENT ASSETS Property Plant and Equipment (b) 4 403,863,165 359,598,435 Total Assets C = (a) + (b) 5,944,730,782 5,063,426,146 LIABILITIES: Current Liabilities: Unremitted Taxes 5 22,440,123 8,713,083 Net Assets Fund / Equity IDA credit 8,908,115,195 7,589,934,786 Federal government contribution 85,767,110 - State government contribution 323,194,918 156,210,171 Surplus / Deficit for the Year (703,354,670) (2,350,306,003) Accumulated Surplus / (Deficit) (2,691,431,894) (341,125,891) 5,944,730,782 5,063,426,146 Mr. Andrew David Adejo (National Coordinator)... M r. Bamidele 0. Akinola (Project Accountant)............. 4
YOUTH EMPLOYMENT AND SOCIAL SUPPORT OPERATION (YESSO) STATEMENT OF FINANCIAL PERFORMANCE FOR THE YEAR ENDED 31ST DECEMBER 2016 2016 2015 NOTES N N REVENUE Other receipts 6 7,739,725 1,479,792 TOTAL 7,739,725 1,479,792 EXPENDITURE Operations Development Expenditure: Non Consulting Services 7 11,266,050 4,050,841 Consulting 8 70,884,154 54,576,071 Operating Costs 9 565,908,093 267,080,059 Training 10 91,485,538 89,309,799 Disbursement to States 11 430,648,500 2,006,709,296 SOEs Under Processing 32,132,566 24,783,124 Cash Transfer / Stipends to Beneficiaries 1,592,090 27,000 Depreciation 4 131,594,689 95,081,560 TOTAL PAYMENTS 1,335,511,680 2,541,617,750 Surplus / (Deficit) from Operating Activities for (1,327,771,955) (2,540,137,958) Exchange Gain 624,417,285 189,831,955 Total Surplus / (Deficit) for the Period (703,354,670) (2,350,306,003) 5
STATEMENT OF CHANGES IN NET ASSET / EQUITY FOR THE YEAR ENDED 31ST DECEMBER 2016 ACCUM. FED GOVT STATE GOVT EXCHANGE SURPLUS / IDA CREDIT CONT CONT DIFFERENCE DEFICIT TOTAL fn N N4 N4 N N Balance as at 1/1/2016 7,589,934,786-156,210,171 189,831,955 (341,125,891) 7,594,851,021 Additional Fund 1,318,180,410 85,767,110 166,984,748 - - 1,570,932,268 Exchange Gain - - - 624,417,285-624,417,285 Surplus / Deficit from Operating Activities - - - (703,354,670) (703,354,670) Balance as at 31st Dec 2016 8,908,115,196 85,767,110 323,194,919 814,249,240 (1,044,480,561) 9,086,845,904 6
YOUTH EMPLOYMENT AND SOCIAL SUPPORT OPERATION STATEMENT OF CASHFLOW FOR THE YEAR ENDED 3 1 st DECEMBER 2016. 2016 2015 Cash Flow From Operating Activities INFLOWS: Revenue from Exchange Transaction 7,739,725 1,479,792 Revenue from Non Exchange Transaction 624,417,285 189,831,955 632,157,010 191,311,747 OUTFLOWS: Non Consulting Services (11,266,050) (4,050,841) Consulting (70,884,154) 54,576,071 Operating Cost (565,908,093) (267,080,059) Training (91,485,538) (89,309,799) Disbursement to States (430,648,500) (2,006,709,296) SOEs Under Processing (32,132,566) (24,783,124) Cash Transfer / Stipends to Beneficiaries (1,592,090) (27,000) Net Cashflow / Outflow from Operating A (571,759,981) (2,146,072,301) Cash Flow from Investing Activities Acquisition of Assets 175,859,419 (97,727,335) Net Cash Flow From Investing Activities ( 175,859,419 (97,727,335) Cash Flow from Financing Activities: IDA Credit 1,318,180,410 2,106,021,808 Federal Government Contribution 85,767,110 State Government Contribution 179,540,626 117,208,171 Net Cash Flow From Financing Activities ( 1,583,488,146 2,223,229,979 Net Cash Flow for the Year (a)+(b)+(c 835,868,746 (20,569,657) Cash and Cash Equvalent at 1/1/2016 4,703,827,711 4,724,397,368 Cash and Cash Equvalent at 31/12/ 5,539,696,457 4,703,827,371 Cash and Bank Balance at 31/12/20 5,539,696,457 4,703,827,711 7
NOTE 1: STATEMENT OF COMPLIANCE WITH IPSAS The financial statements set out above are in compliance with the requirements of the International Public Sector Accounting Standards (IPSAS), where applicable subject to the statement of accounting policies disclosed below. NOTE 2: STATEMENT OF ACCOUNTING POLICIES The following are the significant accounting policies adopted in the preparation and fair presentation of the financial statements. (a) BASIS OF ACCOUNTING The Financial Statements have been prepared under the historical cost convention. No adjustment have been made in respect of effects of inflation and rising prices. (b) FUNDS All contribution by the financiers was recognized when received and capitalized as IDA Credit / Fund. Subsequently, the Fund is increased or reduced by surplus or deficit from the Statement of Financial Performance. (c)recognition OF REVENUE / EXPENDITURE Revenue and expenditure are recognised when they become receivable or payable, incurred or earned. (d) (i) (ii) NON CURRENT ASSETS Non Current Assets that are not in use are stated at cost. Depreciation are charged on all assets in use at applicable rate in compliance with the IPSAS standard as stated below: ASSET RATE % i. Plant and Machinery 15 ii. Field Equipment 25 iii. Office Equipment 25 iv. Motor Vehicles 20 v. Office Furnitures 20 (e) FOREIGN CURRENCY Transactions in foreign currencies are converted into Naira at the rates of exchange ruling at the date of each transaction. Balance in foreign currencies are translated into Naira at the exchange rates ruling at the reporting date. Exchange differences arising from the foreign currency translations are also recognised. (f) DEFFERED TAXATION No provision was made for deferred taxation because the Operation is exempted from payment of income tax. 8
YOUTH EMPLOYMENT AND SOCIAL SUPPORT OPERATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2016 NOTE 3 2016 2015 CASH AND CASH EQUIVALENT f 14 Special Account 4,260,561,406.00 3,554,841,842.16 Special Account CBN 91,395,260.00 Counter Part Account 77,144,214.47 78,259,252.71 Counter Part Account CBN 15,505,028.50 Draw Down Account 1,042,497,149.51 1,070,726,616.01 Draw Down Account CBN 52,593,398.51 TOTAL 5,539,696,456.99 4,703,827,710.88 9
NOTE 4 PROPERTY PLANT AND EQUIPMENT SCHEDULE OFFICE Plant & FIELD OFFICE MOTOR FURNITURE & Equipment EQUIPMENT EQUIPMENT VEHICLE FITTINGS TOTAL N4 N N N 1 11 Cost as at 1/1/2016 60,000 11,266,355 71,704,857 350,140,895 21,507,888 454,679,995 Addition During the Year 2,899,785-29,724,666 136,675,068 6,559,900 175,859,419 Cost as at 31/12/2016 (a) 2,959,785 11,266,355 101,429,523 Depreciation Charges: 486,815,963 28,067,788 630,539,414 Balance as at 1/1/2016 9,000 2,816,589 17,926,214 70,028,179 4,301,578 95,081,560 Charge During the Year 443,968 2,816,589 25,357,381 97,363,193 5,613,558 131,594,689 Total as at 31/12/2016 (b) 452,968 5,633,178 43,283,595 167,391,372 9,915,136 226,676,249 Carring Amount as at 31/12/2016 (C = (a) - (b) 2,506,817 5,633,177 58,145,928 319,424,591 18,152,652 403,863,165 10
NOTE 5 UNREMITTED TAXES 2016 2015 Unremitted VAT 10,352,808.91 4,279,541.40 Unremitted WHT 12,087,314.52 4,433,541.41 TOTAL 22,440,123.43 8,713,082.81 NOTE 6 OTHER RECEIPTS N Interest Received from Dollar Bank A/C 7,631,597.00 1,403,938.00 Interest Received from Naira Bank A/C 9,563.00 74,104.00 Miscellaneous Receipts 98,565.00 304,489.00 TOTAL 7,739,725.00 1,782,531.00 NOTE 7 NON CONSULTING SERVICES N N Promotional Materials 10,911,050.00 2,054,500.00 ID card for Beneficiaries 355,000.00 Start Pack to Skill for Jobs Participants -_ TOTAL 11,266,050.00 2,054,500.00 NOTE 8 CONSULTING N N Consultancy Fees 36,483,724.89 36,657,740.95 Wages for Support Staff 20,098,468.96 13,705,181.17 External Auditors 54,620.00 Production of Jingles 20,000.00 - Advocacy and Sensitization 1,521,700.00 459,000.00 Remunerations for Consultancy 10,061,436.42 22,249,940.76 Reinbersement for Consultants 2,698,823.58 40,709,025.00 70,884,153.85 113,835,507.88 11
NOTE 9 OPERATING COST M M Technical Back Up by FOCU Staff 480,000.00 Budget & Work planing Workshop for FOCU Staff - 244,000.00 Orientation Training & National Launch 2,058,992.00 Review workshop for Finalization of M & E 988,850.00 Quarterly Meeting of FOCU & SOCU 732,000.00 Assessment of State Govt Preparedness 1,146,000.00 Office Space and Other Operational Costs 3,544,825.00 6,423,050.00 NDE Skill for Jobs Operations 38,253,922.62 34,604,506.00 Sensitization of Communities 2,603,400.00 6,010,700.00 Technical Visit to States 13,076,980.92 799,630.00 Monitoring the Selection of Beneficiaries 910,180.00 Periodic / Quarterly Monitoring of Implementatic 1,188,000.00 4,043,680.00 Impact Evaluation of the CCT Program 136,000.00 Meals and Refreshment for Sundry Meetings 1,958,400.00 2,720,560.00 Stakeholders Consultative Workshop 4,260,900.00 553,800.00 Office Maintenance 6,709,730.00 4,413,230.00 Vehicle Insurance/ Expenses 20,072,764.00 44,545,543.45 Equipment Rental & Maintenance 3,596,740.00 1,686,500.00 Utilities 263,806.01 818,906.30 Travelling Expenses 76,445,110.54 91,662,068.16 YESSO Launch 3,129,000.00 Sensitization 1,229,000.00 5,528,900.00 Adhoc Staff 4,908,000.00 400,000.00 Step down Training/ Advocacy and Sesitization 9,062,225.00 5,536,800.00 Unified Registry of Beneficiaries Activities 119,185,985.00 108,976,399.28 Redress of Grieviances 600,720.00 PIU Staff/ SOCU Operations 6,937,000.00 7,350,500.00 Media Promotion 9,429,813.70 7,274,616.50 Meetings 20,105,873.00 21,069,445.00 Attendance at Meetings outside the State 14,605,850.00 23,098,924.80 Advert for Procurement of Goods & Consultancy 1,892,694.33 2,524,640.44 Public Awareness 1,529,250.00 2,977,290.00 Establishment of M&E Framework 37,800.00 1,526,000.00 Routine M&E Activities 666,130.00 2,788,200.00 Telephone / Intenet Expenses 9,826,600.00 11,235,930.00 Consumables 3,372,530.00 8,113,936.44 PFMU Expenses 13,162,725.00 15,912,797.00 Selection of Beneficiaries 15,000.00 Sensitization Expeses 9,833,715.00 2,125,880.00 Orientation 6,744,250.00 140,000.00 Study Tour for Project Staff 571,000.00 888,000.00 House Numbering 12 4,359,040.00 1,379,880.00
Identification of Potential Poor Household 3,773,400.00 2,938,760.00 Visit to Identified Poor House hold 233,740.00 172,000.00 Community Gathering to Validate Selected 1,111,500.00 Collation into Unified URB 6,908,401.50 4,530,000.00 Postage/ Courier 867,279.00 985,408.00 Domestication of Generic Operation Manual 124,500.00 Reimbersement of Operating Cost 1,234,980.00 4,490,500.00 Ancillary Expense 16,550,370.00 4,292,850.00 Stationeries 9,034,020.00 11,506,424.39 Bank Charges 1,501,216.50 1,472,256.50 Overhead 4,173,920.00 2,950,200.00 Flexible Accounting Software Maintenance 948,860.00 Productivity Allowance 95,856,334.00 39,744,000.00 Maintenance of Office Furniture and Fittings 328,200.00 547,550.00 Maintenance of Generator 2,523,492.00 89,200.00 Environmental and Sound Safeguard 9,542,100.00 TOTAL 565,908,093.12 509,528,484.26 NOTE 10 TRAINING f4 f4 Local Training 92,369,912.00 77,753,430.98 Reimbursement for Training Overseas Training 884,373.68 41,084,024.71 TOTAL 93,254,285.68 118,837,455.69 NOTE 11 DISBURSEMENT TO STATES STATE f4 f4 BAUCHI 39,628,456.89 16,210,260.40 CROSS RIVER 19,660,839.00 15,031,920.60 EKITI 37,469,885.69 12,673,531.70 KOGI 55,183,200.35 143,397,908.50 KWARA 105,884,126.69 39,866,428.00 NIGER 80,542,573.00 29,000,944.00 OSUN 61,106,691.68 26,124,187.51 OYO 31,172,726.66 17,413,835.00 Balance of Disbursement 1,706,990,280.28 TOTAL 430,648,499.96 2,006,709,295.99 13