african development bank (afdb) project · for the fiscal period 2013/2014 6 promoting...

Draft Audit Report and Financial Statement on the Integrated Public Financial Management Reform Program (IPFMRP) Financial Statement for the fiscal Period 2013/2014

African Development Bank (AfDB) Project

FOSTERING INNOVATIVE SANITATION HYGIENE (FISH)

Project

Implemented by the Government of Liberia

Through

“Project Implementation Unit (PIU) at the Monrovia City Corporation and the

Project Financial Management Unit (PFMU) at the Ministry of Finance and

Development Planning”

AUDITOR GENERAL’S REPORT

For the period ended June 30, 2014

Auditor General’s Report on the FOSTERING INNOVATIVE SANITATION HYGIENE (FISH) Project

For the fiscal Period 2013/2014

1 Promoting Accountability of Public Resources

Table of Contents Table Of Contents .................................................................................................................................... 1

Ancronym ...................................................................................................................................................... 2

Auditor General’s Report ............................................................................................................................. 3

Auditor General’s Report On The Special Account Statement ................................................................ 11




ANCRONYM

Acronym Meaning

AfDB African Development Bank

CGMA Chartered Global Management Accountant

CPA Certified Public Accountant

IPSAS International Public Sector Accounting Standards

ISSAIs International Standards of Supreme Audit Institutions

PFMU Project Financial Management Unit




AUDITOR GENERAL’S REPORT

December 31, 2015

Madame Clara Doe Mvogo

Mayor

Monrovia City Corporation

Monrovia, Liberia

We have audited the accompanying financial statements for the “Grant No.: 5600155003101

and Project ID No.: P-LR-EB0-002 of the “FOSTERING INNOVATIVE SANITATION

HYGIENE (FISH) Project” which comprise the Statement of Receipts and Payments for the

period July 1, 2013 to June 30, 2014, statements of Fund Balance and Cash Status and Statement

of Financial Position for the year then ended.

Management responsibility for the financial statements

PFMU Management is responsible for the preparation and fair presentation of these financial

statements in accordance with Cash Basis International Public Sector Accounting Standards (IPSAS)

and in accordance African Development Bank (AfDB) Guidelines and for such internal control as

management determines is necessary to enable the preparation of financial statements that are

free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on the financial statements based on our audit. We con-

ducted our audit in accordance with International Standards of Supreme Audit Institutions (ISSAIs)

and in accordance African Development Bank (AfDB) Guidelines. 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 from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclo-

sures in the financial statements. The procedures selected depend on the auditor’s judgment, in-

cluding the assessment of the risks of material misstatement of the financial statements, whether

due to fraud or error. In making those risk assessments, the auditor considers internal control rele-

vant to the entity’s preparation and fair presentation of the financial statements 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 control. An audit also includes evaluating the

appropriateness of accounting policies used and the reasonableness of accounting estimates made

by management, as well as evaluating 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 qualified audit opinion.




Opinion

In our opinion, the Statement of Receipts and Payment for “Grant No.: 5600155003101 and

Project ID No.: P-LR-EB0-002 of the “FOSTERING INNOVATIVE SANITATION HYGIENE

(FISH) Project” for the period ended June 30, 2014 are prepared, in all material respects, in ac-

cordance with the International Public Sector Accounting Standards (IPSAS) Cash Basis and the Af-

rican Development Bank (AfDB) Guidelines..

Monrovia, Liberia

December 2015




STATEMENT OF RECEIPTS AND PAYMENTS FOR THE YEAR ENDED JUNE 30, 2015

Notes 2013/2014

US$

Receipt

ADF Grant 1 622,700.00

Funds from sales of bid document 1,075.00 Total Receipt 623,775.00

Less

Payment

Construction & Rehabilitation of

Sanitation Infrastructure

2

26,550.00 FS Collection and Treatment 3 42,887.25 Reuse 4 1,625.00 Project Management 5 115,114.55 Total Payment 186,176.80

Excess of receipt payment 437,598.20

Fund Balance as at July 1 -

Cumulative fund balance

437,598.20

The notes found on pages 14-17 are an integral part of these financial statements




STATEMENT OF FUND BALANCE AND CASH STATUS

FOR THE YEAR ENDED JUNE 30, 2015

In United States Dollars Notes 2013/2014

US$

A. FUND BALANCE

Balance of Project Fund 0.00

Add: Total Receipts during the period 1 622,700.00

Sale of Bid Documents 1,075.00

Total fund available for operations 622,700.00

Less: Total payments 6 186,176.80

Balance of project funds at the end of the

year

437,598.20

B. CASH STATUS:

Cash at bank 437,598.20

Cash on hand _

Difference between A and B _





STATEMENT OF FINANCIAL POSITION AS AT JUNE 30, 2015

In United States Dollars 2013/2014

US$

Assets

Cash and cash equivalent 437,598.20

Total Assets 437,598.20

Fund Balance

Grant 437,598.20

Accumulated Fund Balance 437,598.20





AUDITOR GENERAL’S REPORT ON THE STATEMENT OF EXPENDITURE

December 31, 2015


Mayor


Monrovia, Liberia

We have audited the accompanying Statement of Expenditure for the “Grant No.:

5600155003101 and Project ID No.: P-LR-EB0-002 of the “FOSTERING INNOVATIVE

SANITATION HYGIENE (FISH) Project” for the period July 1, 2013 to June 30, 2014.

Management Responsibility for the Statement of Expenditures

The management of the Project Financial Management Unit (PFMU) is responsible for the

preparation and fair presentation of the Statement of Expenditure in accordance African

Development Bank (AfDB) Guidelines.


Our responsibility is to express an opinion on the financial statements based on our audit. We con-

ducted our audit in accordance with International Standards of Supreme Audit Institutions (ISSAIs)

and in accordance African Development Bank (AfDB) Guidelines. 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 from material misstatement.











for our qualified audit opinion.




Opinion

In our opinion, the Statement of Expenditure for “Grant No.: 5600155003101 and Project ID

No.: P-LR-EB0-002 of the “FOSTERING INNOVATIVE SANITATION HYGIENE (FISH) Pro-

ject” for the period ended June 30, 2014 are prepared, in all material respects, in accordance with

the African Development Bank (AfDB) Guidelines.

Monrovia, Liberia

December 2015




Statement of Expenditure for the Year Ended June 30, 2014

Notes 2013/2014

US$ Construction & Rehabilitation of


2

26,550.00

FS Collection and Treatment 3 42,887.25

Reuse 4 1,625.00

Project Management 5 115,114.55

Total Payment 186,176.80





AUDITOR GENERAL’S REPORT ON THE SPECIAL ACCOUNT STATEMENT

December 31, 2015


Mayor


Monrovia, Liberia

We have audited the accompanying Special Account Statement for the “Grant No.:

5600155003101 and Project ID No.: P-LR-EB0-002 of the “FOSTERING INNOVATIVE

SANITATION HYGIENE (FISH) Project” for the fiscal year ended June 30, 2015.

Management responsibility for the Special Account Statement

The statement is the responsibility of the Project Financial Management Unit (PFMU) at the Ministry

of Finance and Development Planning, Republic of Liberia. This responsibility includes: designing,

implementing, and maintaining internal control relevant to the fair presentation of the Special

Account Statement that is free from all material misstatement, whether due to fraud or error,

selecting and applying appropriate accounting policies and making accounting estimates that are

reasonable in the circumstances.


Our responsibility is to express an opinion on the Special Account Statement based on our audit. We

conducted our audit in accordance with International Standards of Supreme Audit Institutions (IS-

SAIs) and in accordance African Development Bank (AfDB) Guidelines. Those standards require that

we comply with ethical requirements and plan and perform the audit to obtain reasonable assur-

ance about whether the financial statements are free from material misstatement.











for our audit opinion.




Opinion

In our opinion, the Special Account Statements for “Grant No.: 5600155003101 and Project

ID No.: P-LR-EB0-002 of the “FOSTERING INNOVATIVE SANITATION HYGIENE (FISH)

Project” for the period ended June 30, 2014 are prepared, in all material respects, in accordance

with the African Development Bank (AfDB) Guidelines.

Monrovia, Liberia

December 2015




PROJECT SPECIAL ACCOUNT STATEMENT

Account

Number:

USD Account: 00.2090-024183-01

Euro

Account:

00.2090-024183-02

Account Type: Current Account

Depository

Bank:

International Bank

Liberia Limited

Address: Broad Street,

Monrovia, Liberia

Related Grant

Agreement:

Fostering Innovative

Sanitation Hygiene

Project Loan No.:

5600155003101

Currency: United States Dollar

Euro

2013/2014

US$

Total Grant received 622,700.00

Other Receipts- Sales of Bid Documents 1,075.00

Total grant income reported 623,775.00

Less total payments

186,176.80

Balance as at July 1 __

Balance as at June 30 437,598.20

Analysis of Closing Balance:

USD Account: 00.2090-024183-01 336,648.20

Euro Account:: 00.2090-024183-02 (in

US$)

100,950.00

437,598.20





NOTES TO FINANCIAL STATEMENTS

I. Background and Information of the Project

The Government of Liberia and the African Development Bank agrees to a grant not exceeding an

equivalent of one million two hundred thousand Euros (EURO 1, 200,000.00). The project started

its operations in September 2013. Fiscal period 2013/2014 is the first period under audit, hence, the

first audit of the project.

Objective

The purpose of the grant is to increase access to sustainable and affordable sanitation services with

improved hygiene and livelihood for Monrovia’s urban poor.

The table below sets out the categories of items to be financed out of the grant proceeds, the

allocation of the amounts of the grant to each category and the percentage of expenditures for

items to be financed in each category:

Component Amount of Grant

allocated

Expressed in

EURO (000,000)

Amount of

Grant allocated

Expressed in US

$ (000,000)

% of

expenditure

to be financed



0.30 0.39 100

FS Collection and Treatment 0.49 0.64 100

Reuse 0.07 0.09 100

Project & Knowledge Management 0.26 0.33 100

Contingency 7.5% 0.08 0.11 100

Total 1.20 1.56

All categories of expenditure shown in these financial statements are fully financed based on the

percentage below:

% of Expenditure

AfDB 100

______

Total 100

=====




II. Significant Accounting Policies

Basis of accounting

The financial statements have been prepared in accordance with the Cash Basis International Public

Sector Accounting Standards (IPSAS) and in the manner required by the Project Grant Agreement

as required by the African Development Bank’s Operating Policies and Procedures and PFMU’s

Financial Management manual. This implies that all expenditures are expensed whether they are

revenue or capital in nature and income is recognized when funds are received from the African

Development Bank.

III. Reporting currency

Financial reports have been presented in United States Dollars. Transactions denominated in other

currencies are translated into United States Dollars and recorded at the rate of exchange ruling at

the date of transactions. Balances denominated in other currencies are translated into United States

Dollars at the rate of exchange prevailing on the reporting date.

1. Grant Receipt

2013/2014

US$

RF N0001

622,700

622,700

2. Construction & Rehabilitation of Sanitation

Infrastructure

Construction/Rehabilitation of Public Toilets 26,550.00

26,550.00

3. FS Collection and Treatment

Pick-up Trucks 28,500.00

Office furniture & Equipment 14,387.25

Cesspit Emptier Truck

42,887.25

4. Reuse

Baseline studies: Development & FS marketing plan 1,625.00

1,625.00




NOTES TO FINANCIAL STATEMENT (continued)

5. Project Management

Project management cost 115,114.55

115,114.55

6. Amount paid from Grant proceeds



26,550.00

FS Collection and Treatment 42,887.25

Reuse 1,625.00

Project Management 115,114.55

Total 186,176.80

7. Commitment Schedule




8. Variance Analysis