Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized WEST AFRICA REGIONAL COMMUNICATIONS INFRASTRUCTURE PROGRAM (WARCIP) MINISTRY OF INFORMATION, COMMUNICATION & INFORMATION TECHNOLOGY (THE GAMBIA) FINANCIAL STATEMENTS & REPORTS FOR THE SIXTEEN MONTHS ENDED 30 th APRIL 2017 Public Disclosure Authorized AUGUSTUS PROM AUDIT. TAX. ADVISORY. REGISTERED AUDITORS 3 KAIRABA AVENUE 3 RD FL. CENTENARY BUILDING SERREKUNDA, KSMD THE GAMBIA MAY 2017
Contents Page 1 General Information 2 1.1 Background 3 1.2 Audit Scope and objectives 6 1.3 Summary of audit results 9 1.4 Statement of Responsibility 10 2 Consolidated Statement of Sources & Uses of Funds 2.1 Auditor s Report on the Consolidated Statement of Sources & Uses of Funds 12 2.2 Consolidated Statement of Sources & Uses of Funds 14 3 Auditor s Report on the Special Accounts - IDA 3.1 Auditors Report on the IDA Special Account 17 3.2 IDA Special Account Statement by Component 18 4 Auditor s Report on the GLF Account 4.1 Auditors Report on the GLF Account 20 4.2 GLF Account Statement by component 21 5 Notes to the Statements 5.1 Accounting Policies 23 6. Appendices Appendix A List of Ineligible Expenditure 29 Appendix B Budget Variance Reports 30 Appendix C Withdrawal Applications & Reconciliation 31 Appendix D Project Fixed Assets 32 1
1. General Information Members of the Project Focal Point Forum Permanent Secretary, MOICI Director Regulatory Affairs, GAMTEL Deputy Permanent Secretary, MOFEA Director of Telecoms, PURA Project Coordinator, WARCIP Director General, GSC Chairman Member Member Member Member Member Bankers Central Bank of The Gambia 1 Ecowas Avenue Banjul, The Gambia Financial Auditor Augustus Prom Audit. Tax. Advisory. Centenary Building, 3rd Floor 3 Kairaba Avenue Serrekunda, KSMD The Gambia. Donors International Development Association (IDA) 1818 H Street, N.W Washington, D.C.20433 United States of America. Registered Office 10 Kairaba Avenue KSMD The Gambia 2
1.1 Project Background The Government of The Gambia (GOTG) in its quests to achieving the Millennium Development Goals (MDGs) and its blue print Vision 2020 objectives saw the need for improving The Gambia s international connectivity, as well as for greater regional economic and communication infrastructure integration. For this reason, the GOTG decided along with many other West African Countries, to become a member of the Africa Coast to Europe (ACE) fiber-cable project. A Special Purpose Vehicle (SPV) The Gambia Submarine Cable Co. Ltd was established between the private Global System for Mobile Communications (GSM) operators and Internet Service Providers (ISP), the GOTG and the Gambia Telecommunications Company (GAMTEL/GAMCEL) participate in the ACE consortium and secure access to capacity. The Gambia through GAMTEL signed the ACE Construction & Maintenance Agreement (C & MA) on 5 th June 2010 and accordingly became a member of the ACE consortium and part of the new fiber-cable system. This support forms part of the West Africa Regional Communications Infrastructure Program (WARCIP) Gambia Project prepared by the GOTG with Financial Support from the World Bank through an International Development Association (IDA) grant of US$35million. The project is to be implemented over four years commencing 2011 and the total cost of the project is estimated as US$35 million. The PIU Office commenced operations at the beginning of October 2011. The project was officially launched in February 2012. Summary of Project Cost Estimates by Category Components $ Million A. Improving Connectivity 25.75 B. Enabling Environment for improved connectivity 7.25 C. Project Implementation, Communications & M & E Contingency 2.00 Total Project Cost 35.00 Summary of Project Cost Estimates by Sources of Funds Components $ Million A. International Development Association 35.00 Total 35.00 3
Project Objectives & Component Description The project development objective (PDO) of WARCIP The Gambia is to increase the geographical reach of broadband networks and reduce costs of communication service in the territory of Guinea & Gambia. The project seeks to provide a comprehensive solution to address the bottlenecks relating to connectivity to enable the creation of a fully integrated network which will eventually link all countries networks in the region. It also supports the strengthening of the enabling environment by provision of critical technical assistance and local capacity to institutions and provides project implementation support. The project comprises of 3 components; Component 1 Supporting Connectivity (US$25.75m) A. International Connectivity US$24.5m International connectivity will be improved through part financing the Gambia consortium fee to the ACE submarine cable. The bulk of this component will be used to finance the Gambia s participation in ACE. The ACE project processed quickly with substantial payment requirements of its members. The Gambia made three payments amounting to US7.5m since June 2010. Given the schedule of payments, World Bank support of US$0.75million will be made under retroactive financing and the remaining amount will take the form of direct disbursements to ACE. This sub component focuses on the following; Support to provide access to International Submarine Cable Connectivity Provide support for the construction of a domestic landing station Provide broader bandwidth for more international connectivity. B. Regional/National Connectivity US$1.25m Broadband will b e provided to improve priority services. While international fiber links could potentially facilitate better and cheaper access to communication in the Gambia, the full benefit of this access cannot be achieved without further investments in national infrastructure and effective use of ICT for critical services. IDA resources will be used to fund; A national Internet Exchange Point (IXP) Development of connectivity between key selected Government Institutions Developing a feasibility study for connection between the Gambia and neighbouring countries to commercialize excess capacity from ACE to less connected neighbours (e.g Guinea Bissau). 4
Component 2 Creating an Enabling Environment for Connectivity (US$7.25m) Support to optimize the governance, ownership and financing issues related to the landing station and provision of networks and services emanating from the ACE Cable. This component will provide Technical Assistance and capacity building necessary to support the successful implementation of component 1 of the project. Specifically, this component 2 will focus on the transaction design and operational model for ownership and management of international, regional and national infrastructure using Public Private Partnership (PPP) frameworks and related open access principles to create an enabling environment for improved connectivity. The PPP framework will focus on principles of open and non-discriminatory access while maximizing the role of the private sector. This component will also see the strengthening of the policy and regulatory environment to promote further sector reform in order to maximize the benefits from access to international capacity and liberalized international gateway. The creation of a new broadband policy a well as a strategy to stimulate bandwidth demand will be supported given the high capacity that will enter the country. Most of the activities under enabling environment are included as part of the PPA. Component 3 Project Implementation (US$1.705m) Support to establish the PIU and build capacity will provide support needed to strengthen the capacity of the GOTG to implement the connectivity project through the establishment of a PIU and hiring dedicated staff to work on the project. The agency responsible for implementing the WARCIP The Gambia will be a PIU attached to the MOICI. This component will cover office equipment, incremental operating costs, audits, M & E, communications and environmental and Social Studies. In addition, a provision for contingency for any possible cost overrun has been made (US$0.295million). This component will also include the initial support to the SPV, The Gambia Submarine Cable Co Ltd in the first few months such as logistical support for company set up. 5
1.2 Audit Scope & Objectives A. Financial Audit The objective of the financial audit of The West Africa Regional Communications Infrastructure Program (WARCIP) Project Financial Statements (PFSs) is to enable the auditor to express a professional opinion on the financial position of the Project and of the funds received and expenditure for the Sixteen Months ended 30 th April 2017. The audit will be carried out in accordance with International Standards on Auditing (ISAs) as promulgated by the International Federation of Accountants (IFAC) and the Donor s (IDA) Audit Guidelines and will include such tests and controls deemed necessary under the circumstances. The professional opinion will include specific references as to whether: a) All external funds have been used in accordance with the conditions of the financing agreements, with due attention to economy and efficiency and only for the purposes for which the financing was provided; b) Goods and services have been procured in accordance with the financing agreements; c) All necessary supporting documents, records and accounts have been kept in respect of all project ventures (including expenditures via statements of expenditures or (Special Accounts). Clear linkages should exist between the books of accounts and the interim and annual reports presented to the donor (IDA); d) Where Special accounts have been used, they have been maintained in accordance with the provisions of the grant agreements; and e) The Project Financial Statements have been prepared in accordance with IPSAS Cash Basis of Accounting and IDA Guidelines. 6
B. Project Financial Statements (PFS) The project financial statements should include: (a) An annual Statement of sources and application of funds and should disclose separately, World Bank s funds and other Donors funds and beneficiaries funds ; (b) An annual Special Account Statement ; (c) Reconciliation between the amounts shown as received by the project and those shown as being disbursed by the World Bank as an annex; (d) (e) A statement of comparison between actual expenditures and budget estimates; Notes accompanying the PFSs; (f) List of Project Fixed Assets ; (g) List of Project Ineligible Expenditure. C. Quality Control and Documentation Procedures The auditor shall apply International Standards on Auditing (ISA 220), and therefore required to do the following: (a) (b) (c) (d) Obtain relevant information to evaluate circumstances and relationships that create threats to independence; Evaluate information on identified breaches which create threat to independence of the audit engagement; Take appropriate action to eliminate such threats or reduce them to an acceptable level by applying safeguards; Document conclusions on independence of the engagement. 7
D. Management Letter Report The auditor shall prepare a Management Letter Report to: (a) (b) (c) (d) (e) Give comments and observations on the accounting records, systems and controls that were examined during the course of the audit; Identify specific deficiencies and areas of weakness in systems and controls that have come to our attention and make recommendations for their improvement; Report on the degree of compliance to applicable National Laws & Regulations and each of the financial covenants of the Financing (Grant) agreements and give comments on internal and external matters affecting such compliance; Communicate matters that have come to attention during the audit that might have a significant impact on the implementation of the project; Bring to attention any other matters that the auditor considers pertinent; E. Audit of the Special Accounts The auditor is required to audit the activities of the Special Accounts associated with the project. The auditor should apply such tests and controls as the auditors considers necessary under the circumstances. The auditor is required to express his opinion on whether: a) The receipts are properly accounted for and withdrawals were made for the purposes of the project in accordance with the financing agreements; b) The degree of compliance with the Bank s procedures and the balance of the Special Accounts at the year end; c) The special account statement give a true and fair view of the activity for the sixteen months ending 30 th April 2017, on the basis of cash deposits and withdrawals; and d) The operations and the use of the Special Account in accordance with financing agreements and the adequacy of internal controls for this type of disbursement mechanism. 8
1.3 Summary of Audit Results Internal Controls We have assessed the overall internal control environment of The West Africa Regional Communication Infrastructure Program (WARCIP) Project as Satisfactory. This was based on the outcome of tests of components of the project s control environment assessed as follows: - Details Control Consciousness Segregation of Duties Management & Supervision Competence of Personnel Protection of Fixed Assets Accounting & Protection of Records Results Satisfactory Satisfactory Satisfactory Satisfactory Satisfactory Satisfactory In making the above assessments, we performed the following: Identified and reviewed monitoring controls in the project; Documented the main systems; Identified and documented internal controls, through discussions with the Project Coordinator and the Project Financial Management Specialist; Use enhanced walk through tests to confirm our understanding of key accounting systems and both detailed and high level internal controls. 9
1.4 Statement of Responsibility by the Project Focal Point Forum It is the responsibility of the Project Focal Point Forum through the Project Implementation Unit (PMU) to prepare the Project Financial Statements which should give a true and fair view of the financial position of the project for each financial year. In preparing these Project financial statements, the Forum is required to: Select Suitable Accounting Policies & Apply them consistently ; Make Judgments & Estimates that are reasonable and prudent ; State whether applicable accounting standards have been followed, subject to any material departures disclose and explained in the Financial Statements. The Project Focal Point Forum is responsible for keeping proper accounting records which disclose with reasonable accuracy at any time, the financial position of the project and to ensure that the safeguarding the assets of the project and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. 10
CONSOLIDATED STATEMENT OF SOURCES & USES OF FUNDS For the Sixteen Months Ended 30 th April 2017 11
AUGUSTUS PROM AUDIT. TAX. ADVISORY. 3 Kairaba Avenue P O Box 587, The Gambia - Telephone (220) 4378146/ 4392376 / 4378147 Fax (220) 4378148 E-mail : admin@augustusprom.com www.augustus-prom.gm 2. Auditor s Report on the Consolidated Statement of Sources & Uses of Funds 2.1 To the Members: Project Focal Point Forum of the WARCIP Project & IDA-World Bank We have audited the Project financial statements of The West Africa Regional Communications Infrastructure Program (WARCIP) for the Sixteen Months ended 30 th April 2017 set out on pages 14 to 15, which have been prepared on the basis of the accounting policies stated on page 23. Project Focal Point Forum s Responsibility for the Project Financial Statements The responsibility for the preparation of the Project financial statements including adequate disclosure is that of the Project Focal Point Forum, including the maintenance of adequate accounting records and internal controls, the selection and application of accounting policies and the safeguarding of the assets of the project. Auditor s Responsibility Our responsibility is to express an independent opinion on the Project Financial Statements based on our audit. We conducted our audit in accordance with International Standards on Auditing (ISA) as promulgated by the International Federation of Accountants (IFAC) and Donor (IDA) Guidelines on Project Audits. Those Standards require that we comply with ethical requirements, plan and perform the audit to obtain reasonable assurance on whether the Project Financial Statements are free from material misstatement. An audit includes examining on a test basis, evidence supporting the amounts and disclosures in the Financial Statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall Financial Statements presentation. We believe our audit provides a reasonable basis for our opinion. We believe that the audit evidence that we have obtained is sufficient and appropriate to provide a basis for our audit opinion. 12
Opinion All external funds have been used in accordance with the conditions of the Grant Agreement (Grant No. H713-GM), goods and services have been procured in accordance with the Grant Agreement and adequate internal controls have been maintained. In our opinion, the Consolidated Statement of Sources and Uses of Funds gives a true and fair view of the financial position of The West Africa Regional Communications Infrastructure Program (WARCIP) as at 30 th April 2017, prepared in accordance with Donor (IDA) guidelines and on Cash basis of accounting. 13
2.2 Statement of Sources & Uses of Funds For the Sixteen Months Ended 30 th April 2017 Sixteen Months Ended Year ended Cumulative 30 th April 2017 31 st December 2015 Inception to 30 th April 2017 GMD USD GMD USD USD Notes SOURCES OF FUNDS Opening Balance IDA Special Ac 16,407,254 411,106 69,971,757 1,553,892 - Opening Balance GLF Ac 62,769 3,579 3,150 2,198 Replenishment IDA Funds Special Account Replenishment 5.5 120,032,779 2,786,434 47,035,815 998,397 8,660,426 IDA Funds Direct Disbursement - - - - 23,907,200 GLF Funds Replenishment 5.6 990,761 21,716 300,000 7,598 57,961 Other income 237,459 5,377 31,977 810 6,187 Total Funds 137,731,022 3,228,212 117,324,699 2,562,895 32,631,774 ========= ======= ======== ======== ========== Expenditure Improving Connectivity 5.2 36,610,315 817,988 5,432,142 137,382 24,963,188 Enabling Environment for Improved Conn. 5.3 78,180,756 1,822,510 64,523,132 1,535,124 4,830,627 Project Implementation 5.4 25,170,469 585,609 20,157,085 475,704 2,835,856 Total Expenditure 139,961,540 3,226,108 90,112,359 2,148,210 32,629,671 ======== ======= ========= ======== ========= Exchange Gain / (Loss) 5.1e 2,230,518 (2,103) (10,760,317) - (2,103) Surplus for the Year - - 16,470,023 414,685 - ========= ======= ======== ======= ======== 14
Sixteen Months Ended Year ended Cumulative 30 th April 2017 31 st December 2015 Inception to 30 th April 2017 GMD USD GMD USD USD Continuation from Page 14 Represent by: Closing Bank Balances IDA Special Account - - 16,407,254 411,106 - GLF Account - - 62,769 3,579 - Total Closing Balances - - 16,470,023 414,685 - ========= ======= ========= ======= ========= Signed for and on-behalf of the WARCIP Project by: 15
IDA SPECIAL ACCOUNT STATEMENT For the Sixteen Months Ended 30 th April 2017 16
AUGUSTUS PROM AUDIT. TAX. ADVISORY. 3 Kairaba Avenue P O Box 587, The Gambia - Telephone (220) 4378146/ 4392376 / 4378147 Fax (220) 4378148 E-mail : admin@augustusprom.com www.augustus-prom.gm 3. Auditor s Report on the USD Special Account - IDA 3.1 To the Members: Project Focal Point Forum - Government of The Gambia and IDA We have audited the IDA Special Account Statement of the West Africa Regional Communications Infrastructure Program (WARCIP) for the Sixteen Months ended 30 th April 2017 set out on page 18 established under the provisions of the IDA Grant Number H713-GM. Our audit of the special account was carried out in accordance with International Standards on Auditing (ISA) and IDA guidelines and accordingly included such review of systems of internal controls, tests of the accounting records and supporting documentation, verification of account balances and such other audit procedures that we considered necessary under the circumstances. The accompanying Special Account Statement was prepared on the basis of cash deposits and withdrawals for the purpose of complying with the above mentioned grant agreement. In our opinion, the receipts are properly accounted for and the withdrawals were made for the purposes of the project in accordance with the Project Financing/Grant Agreement. The Special Account gives a true and fair view of the Project s activities for the period ended 30 th April 2017 on the basis of cash deposits and withdrawals. 17
3.2 WARCIP- IDA Special Account Statement For the Sixteen Months Ended 30 th April 2017 Central Bank of Tvhe Gambia Account Number 52101-1103001448 Sixteen Months Ended 30 th April 2017 31 st December 2015 GMD USD GMD USD Notes Opening Balance 16,407,254 411,106 69,971,757 1,553,892 Add: Receipts from Donors 5a 120,032,779 2,786,434 47,035,815 998,397 Exchange Gain - - Total Funds 136,440,033 3,197,540 117,007,572 2,552,289 ======== ======== ======== ======== Less: Project Expenditures Improving Connectivity 36,610,315 817,988 5,432,142 137,382 Enabling Environment 78,180,756 1,822,510 64,523,132 1,535,124 Project Implementation 23,879,479 557,042 19,884,727 468,677 Total Expenditure 138,670,551 3,197,540 89,840,001 2,141,183 ======== ======== ========= ======== Exchange Gain 5.1e 2,230,518 - (10,760,317) - Surplus for the year - - 16,407,254 411,106 ======== ======== ======== ======== Represented by Closing Bank Balance IDA Special Acc. Balance - - 16,407,254 411,106 ======== ======== ======== ====== 18
GLF ACCOUNT STATEMENT For the Sixteen Months Ended 30 th April 2017 19
AUGUSTUS PROM AUDIT. TAX. ADVISORY. 3 Kairaba Avenue P O Box 587, The Gambia - Telephone (220) 4378146/ 4392376 / 4378147 Fax (220) 4378148 E-mail : admin@augustusprom.com www.augustus-prom.gm 4. Auditor s Report on the GLF Account 4.1 To the Members: Project Focal Point Forum - Government of The Gambia and IDA We have audited the Government Local Funds (GLF) Special Account Statement of the West Africa Regional Communications Infrastructure Program (WARCIP) for the Sixteen Months Ended 30 th April 2017 set out on page 21 established under the provisions of the IDA Grant Number H713-GM. Our audit of the special account was carried out in accordance with International Standards on Auditing (ISA) and IDA guidelines and accordingly included such review of systems of internal controls, tests of the accounting records and supporting documentation, verification of account balances and such other audit procedures that we considered necessary under the circumstances. The accompanying Special Account Statement was prepared on the basis of cash deposits and withdrawals for the purpose of complying with the above mentioned grant agreement. In our opinion, the receipts are properly accounted for and the withdrawals were made for the purposes of the project in accordance with the Financing/Grant Agreement. The GLF Special Account gives a true and fair view of the Project s activities for the Sixteen Months ended 30 th April 2017, on the basis of cash deposits and withdrawals. 20
4.2 GLF Special Account Statement For the year Sixteen Months Ended 30 th April 2017 Central Bank of The Gambia Account No: 52102-1101003792 Sixteen Months Ended 30 th April 2017 31 st December 2015 GMD USD GMD USD Notes Opening Balance 62,769 3,579 3,150 2,198 Add: Receipts from Gov t 5a 990,761 21,716 300,000 7,598 Other income 237,459 5,377 31,977 810 Total Funds 1,290,989 30,672 335,127 10,606 ======== ======== ======== ======= Less: Project Expenditures Project Implementation 1,290,989 28,569 272,358 7,027 Total Expenditure 1,290,989 28,569 272,358 7,027 ======== ======== ======== ======== Exchange Gain - 2,103 - - Surplus for the year - - 62,769 3,579 ======== ======= ======= ======= Represented by Closing Bank Balance: GLF Acc. Balance - - 62,769 3,579 ======== ======= ======= ====== 21
Notes to the Financial Statements For the Sixteen Months Ended 30 th April 2017 22
5. Notes (forming part of the Project Financial Statements) Accounting Policies 5.1. The project adopted the following accounting policies which have been consistently applied for items that are considered: a) Accounting Convention The financial statements have been prepared under the historical cost on cash basis accounting. Funds are being recognized as resources in the period in which they are received. Expenditures are also recognized upon disbursements. b) Cash Basis of Accounting The cash basis of accounting recognized on the receipt of cash or cash equivalent and expenditure recognized on the disbursement of cash or cash equivalent. c) Non- Current Assets (Fixed Assets) Fixed Asset investments and all other capital items are treated as operating expenditure in the Project Financial statements. d) Expenditure This represents all expenditure actually incurred by the project. e) Foreign Currency Transactions Replenishment of funds into the special account is translated to Dalasis at the rate ruling on the date of the transaction. Expenditure Incurred in foreign currency is also translated at the rate ruling on the date of the transaction. The balance of funds into the Special Account denominated in foreign currency is translated at the period end using the Central Bank mid-market rates and the translation gain or loss recognized as Income or expenditure in the account. f) Budget The budget is developed on the same accounting basis (cash basis), same classification basis and for the same period as for the financial statements. 23
5.2 Improving Connectivity Sixteen Months Ended 31 st December 2015 30 th April 2017 USD USD Financing Participation in ACE - - Financing Regional Connectivity 817,988 137,382 817,988 137,382 ====== ======= 5.3 Enabling Environment for Improved Connectivity Support to Optimize Open Access - 141,741 Legal & Regulatory Safeguards for Open Access 567 - Broadband Policy & Demand Stimulation Strategy 434,126 570,716 Supporting the development of Policy Making 456,950 77,694 GAMTEL Repositioning 398,758 38,915 Capacity Building 191,473 329,912 Development of Regulatory Instruments 340,636 276,146 1,822,510 1,535,124 ======== ======= 5.4 Project Implementation, Communications and M & E. PIU Setup and Operating Expenses & Contingency 315,643 385,546 Communication, M & E and Environmental Studies 81,993 39,700 Initial Support to SPV 187,973 50,458 585,609 475,704 ======== ======= 24
Sixteen Months Ended 31 st December 2015 30 th April 2017 USD USD 5.5 IDA Receipts during the year into the USD Special Account Donor Replenishment (See Note 5.5a) 2,891,130 1,998,397 Refund to IDA (See Note 5.5b) (104,696) (1,000,000) 2,786,434 998,397 ======= ======= 5.5a IDA Donor replenishment during the year into the USD Special Account Application 26 391,626 - Application 27 550,000 - Application 28 647,064 - Application 29 526,472 - Application 30 336,458 - Application 33 439,510 - Application 22-695,070 Application 24-1,000,000 Application 25-303,327 Less Refund (See Note 5.5b) (104,696) (1,000,000) 2,786,434 998,397 ======= ======= 5.5b. Refund to IDA 30 th April 2017 The Refund of USD 104,696 is as a result of the project closing and this was the remaining balance in the USD Special Account which was a requirement of the Project Agreement. 31 st Dec 2015 The refund of $1,000,000 to the bank is upon request made by the bank to the project in order to reconcile the project s account with the bank. 25
5.6 Government of The Gambia Replenishment into GLF Sixteen Months Ended 31 st December 2015 30 th April 2017 USD USD GOTG Replenishment 21,716 7,598 21,716 7,598 ======= ======= 5.7 Direct Payments/Disbursements to Suppliers For the year under review, there were no direct payments to Suppliers by the IDA. 5.8 Related Party Transaction In 2015 there was a contract dated 6th October 2015 amounting to US$197,000 awarded to A3Q Consulting Limited for the Consultancy service on the policy, legal and regulatory framework consultancy on the transition from Analogue to digital broadcasting. A member of the consulting team is the Director General of GSC who is also a member of the Focal Point Forum of the WARCIP Project. However at the time of awarding the Contract, he was not the Director General of GSC. 5.9 Project Closure This is the Final Period for the WARCIP Project. The Initial closure date was 31 st December 2016 but an additional 4 months grace period was added to the Project for outstanding payments and closure of the project resulting to the Financial Statements been audited for a 16 Month Period Ended 30 th April 2017. 26
6. Appendices to the Project Financial Statements 27
Appendices Appendix A Appendix B Appendix C Appendix D List of ineligible project expenses Budget Variance Report Withdrawal Applications & Reconciliations Project Fixed Assets 28
Appendix A- List of Ineligible Project Expenditures Year ended Year ended 31st Dec 2015 31st Dec 2014 GMD USD Ineligible expenditure detected during the audit Nil Nil 29
Appendix B Budget Variance Reports (USD) Budget line/ Activity Budget Actual Variance USD USD USD Improving Connectivity Financing Regional Connectivity 1,039,703 817,989 221,714 Enabling Environment for Improved Connectivity Support to optimize the Governance Legal & Regulatory Safeguards for open acc. - 567 (567) Broadband Policy & Demand Stimulation 300,000 434,126 (134,126) Supporting Policy Making Activities 298,200 456,950 (158,750) GAMTEL Responding 484,000 398,758 85,242 Capacity Building - 191,473 (191,473) Development of Regulatory Instruments 413,308 340,637 72,671 Project Implementation, Communications And Monitoring & Evaluation PIU Set up, Operating Expenses and Cont. 299,650 315,643 (15,993) Communication, M & E and Enviro. Studies 101,250 81,993 19,257 Initial Support to SPV 90,000 141,673 (51,673) Total 3,026,111 3,226,108 199,997 30
West Africa Regional Communications Infrastructure Program Grant Number H713-GM Audited Financial Statements & Reports for the Sixteen Months Ended 30 th April 2017 Appendix C Withdrawal Applications Reconciliations Source Year App No. App. Amount Disbursed by Donor to Project Special Account (USD) Amount Recognized in the Project Financial Statements (USD) Reconciliation Differences (USD) IDA 2016 026 391,626 391,626 - IDA 2016 027 550,000 550,000 - IDA 2016 028 647,064 647,064 - IDA 2016 029 526,472 526,472 - IDA 2016 030 336,458 336,458 - IDA 2016 033 334,814 334,814 - Total 2,891,130 2,891,130-31
Appendix D Project Fixed Assets As at 30 th April 2017, the project closed down and all assets were handed over to the Ministry of Information, Communication and Information Technology as stated in the project agreement. 32
West Africa Regional Communications Infrastructure Program Grant Number H713-GM Audited Financial Statements & Reports for the Sixteen Months Ended 30 th April 2017