Report of the Independent Auditor

To: The Project Management

Report on the financial statements

We have audited the accompanying financial statements of Information and communicationtechnology support Phase I Project ("the Project"), funded by the International DevelopmentAssociation ("IDA") under the Grant Agreement No TF017371, which comprise thestatement of financial position as at 31 December 2015 and the statement of receipts andpayments for the year then ended, and the notes thereto ("the financial statements") as set outon pages 3 to 11. The financial statements have been prepared by Project Management.

Project Management's responsibility for the financial statements

Project Management is responsible for the preparation of the financial statements inaccordance with the International Public Sector Accounting Standards and for such internalcontrol as Project Management determines is necessary to enable the preparation of thefinancial statements that are free from material misstatement, whether due to fraud or error.

Auditor's responsibility

Our responsibility is to express an independent opinion on these financial statements basedon our audit. We conducted our audit in accordance with International Standards on Auditing.Those standards require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance whether the financial statements are free from materialmisstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment, including the assessment of the risk of material misstatement of the financialstatements, whether due to fraud or error. In making those risk assessments, the auditorconsiders internal control relevant to the entity's preparation and fair presentation of thefinancial statements in order to design audit procedures that are appropriate in thecircumstances, but not for the purpose of expressing an opinion on the effectiveness of theentity's internal control. An audit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness of accounting estimates made by management, as wellas evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide abasis for our audit opinion.

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Opinion

In our opinion, except for the effects on the project financial report of the matters referred toabove, the financial statements present fairly the cash receipts and payments of the projectduring the year ended 31 December 2015 and comply with the related grant agreement

Emphasis of Matter

Without modifying our opinion, we draw your attention to the fact that the financialstatements have not been prepared in full compliance with the International Public SectorAccounting Standards (IPSAS) issued by the Public Sector Committee of the InternationalFederation of Accountants. This is because the financial statements lack notes to the financialstatements, accounting policies applied to the project as required by the IPSAS.

We further draw your attention to the significant control deficiencies as well as instances ofnon-compliance which we have provided in a separate management letter. Our auditengagement required an assessment of the controls and procedures applied on the project aswell as compliance with the contractual conditions, We have detailed deficiencies identifiedin this regard on a separate management letter as required by our terms of reference.

Yours faithfully,

Dr Nur Farah Villa Somalia

Auditor General, Federal Government of Somalia Mogadishu(FGS)

Date .3.0 ./.L1J.....

JAMHUURIYADDA FEDERAALKA Le 9y \ >

SOOMAALIYA

XAFIISKA XISAABIYAHA GUUD

EE DOWLADA

The Federal Republic of SomaliaOffice of the Accountant General

Extenal Assistance Fidiciary Section

REF-XXG/92/2016 Date: February 14, 2016

World BankInternational Development Association1818 H Street, N.W.Washington, D.C. 20433United States of America

Sub: Submission of O4 2015 Interim Financial Report IFR

Project name: Somali Information Communication Technology Project (P148588)

Dear Sir,

We are hereby submitting the Interim Financial Report for the ICT Project (P148588) as partof the project quarterly report covering the period from Janauryl - 31 December, 2015. Wethe undersigned, confirm the accuracy of the report to the best of our ability.

Yours Sincerely

Ahmed Yusuf MuminAccountant General

Moharmud Abdulkadir AraleDirector of EAFS

Copy to: Leonard MathekaWorld Bank, Nairobi - Kenya.

Somalia: Information Communication Technology (ICT)

Grant No. TF017371

Project Number: P148588

Accumulated Interim Unaudited Financial Report

For the period January 2015 to December 2015

Somolio: Infornmatioo Commåmnica:ion Technology (ICT)Grni No. TF017371

Prof cat Number: PN45288

timerimu Unavdacd Financial Rteport

C-sb book for fi pciQd f j" -Dec 20AccoGt Number: 1020

Accoum Nane: Infonnation Communic2ion Technolos.

lecti,, (R, 1 AAVANCN

a"Z r 2sulenn.1R U.

uta

C51MMUL4>nv61 IL,nkCurg,.O ian.am.../PAYn:N'3 uiiAANC Olb14,r,

Dle OJ,ui.No. VnchOrNo. T Inip6n U>z US1 Oi 14.I 5n iis 'il L6

6•21>1.2.

4 A 15 P 74/ 4 D1o514.2i 10c.

i6.1.b.i 0/5 4190 210 xl

<S-ý-5- 72 1 n. e - .. ....

1$I -n4S 2 h o375 '' T.rns ik i.>.11. 00__ t10____ 14,929.sY.ii .

1ir- siI ch _o____| m ___f. _ rim_ m_ m ._ ao _p_,_ }_ o

25s.c ,,46n ebu cos..igti ri .. i.er 2111u.o 14mp&ii } ayi

3-Arig-13sPch 0/S/I~ bi>, oti,i' , i P Por, Z59. Å. 171.1 22 .- l ciP ?-J lS cas .: nli. I-fl>r- . o_no_ _ 9 : I iui 7 .boo

3 -uz-lIPV-Jo/8/ l torola, . , 7>4e5.s .'S» 11pon.4 | i6riah .¶i::6o3-Åug-1 ltSfV1..a 4 15 Ic|.r ui1uu» .a wPr.- hei >6. >> 6111 56.>1i11 ______ ______242110

5. i.l1c>. C,.u.|,|o,i> 15ii,IIrn >43111.Y 9164> g____i,115i ______4-.AuS |14/1f |L | | s.0.44».6i.t.i i

| |6 |i> 5>96. ______| |___ ___________16261

7-Sn-u5 37I5 i..,po.r 6o..1,o,4>.0.>_____ ii.56i ,1>15.0_____

3-ug5 V-4//1 c>21'"' ... a ifoo:s nu.

Somlalia: Information CommuInication Teclutology (ICT)Grant No. TF017371

Project Number: P148588Interimn Unaudited Financial Report

Trial Balance

ACCOUNT CODE & DESCRIPT[ON DEBIT CREDITCode Account

G rants from inrai orgaiwntions (imuli-la e r) 412,337.8 1Otier Incomc

Salaies & Allowances 98,360 00Ope t cces lo htuernanaional bainiwiti 230,29500(oIimII(icat(i>in Rooms iii Key nist [usires 71>,BOAdtvances

Bank Charges 6,158,39Bank hi lances 6,724,42Totals 412,337.81 412,337.81

Rviee by:' tl43- __________ Signatre _________ Date________

Approved by: _ Siga re.DERAAL

SomiiI Information Communication Tecinology (1(1')

Grant No. TF017371Project Number. P148588

Revenue and Expenditure StatementDESCRIPTION NOTES AIOUNT IN USD

A REVENUES

Exie mat Grats • Multilateral 412,337.81Other Incomne

Bank intereit

TOTAL REVENUES 412,337.81

B EXPENDITURES

Coen saion of emplloyees 98,360.00

tse oGoods and Scvices 307,253.39

TOTAL EXPENDITURES 405,613.39

Surplls for fhe year (A) - (13) 6,724.42

Pr by:_ 7__a_ ___ ___ Signature _____ v ite _ _

Arveed by _ _ Sipna) u Datce___

E)08R

Somalia: Information Commnxtuiication Tcchinology (I'I)

Grant No. TF017371Projeet Number: P148588

flalafnce Slie(DESCRIPTION NOTES AMOUNT IN USDA ASSETS

Casb and CIsh Livalcnts 6,724.12Adv'ancas

Tofäl assets ¯6,7242

15 REPRESENTED BYNer surplus of lhe cuirrent ycar 6,72412

Total Ctosing balances (A) - (B) 6,72,.42

1'rep-arcd by :É 24 Signature C ,tt 2 l

Rev ewed by: _ _ . Signamure: Date

Apptoved by S___4_ Signa Date_

0

M)

Somalia: Information Comnnticalion Tcinology (ICT)Grant No. TF017371

Project Number: 1>148588Casis flow Statescnt

DESCRIPTION NO'TES AMOÜIUNT USDA CASH FLOWS FROM OPERATING ACTIVITIES

NL mUrrplus fur cUlrreCit Yfat 6,724A2

Chang'es ins acconuris receiableCh_ iaiges inl :tcair paah

Net receisps coitrelled by third paires

Purchave ef propeýrty, plint and c<uipmuent: (Capii:1 expenditure)Net lendlinig and repaymntsProcceds from cterrnal b>rrowing

'roceeds frøm domielsic hoans

Net Cash genemated fron operating activities 6,724.42

u CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of propery, pi.n r and qu,ipm rs (Cpil l expeiditure)

Nel cash fron/(used in) invesdtig -cetivities

C CASH FLOWS FROM FINANCING ACT!VITIESPrcceeds (rum Ex[erin.d burowings.

Ner lending and repaymenisNcceeds frmi domesc huoa

Net cash fomn/(used in) financing activities

D Net increase l cash4 and cash eqialents .42

E MOVEMENTS IN CASH AND CASH EQUIVALENTSAtsinofjearNet in case in cash from the cash flnw sl-tement 6,724.42

At end ofye-ar 6,724,42

Reviewed by: .i. gr Da

Appoved by- IignaI -

FD -E4RM

E1.~~$

Somalia: Information Communication Technology (ICT)Grant No. TF017371

Project Number: P148588Interim Unaudited Financial Report

Bank Reconciliation StatementAccount Number: 1020

Account Name: Information Communication TechnologyDESCRIPTION AMOUNT IN USDBalance as per Bank Statement as at December 31st 2015 6,724.42

Deduct: checks issued and transfers requested, not yet presented/charged by the bank (isr attached) -

Add: deposits, not yet credited by the bank (detailed individually)

Add/deduct: errors or omissions by the bank, not yet adjusted (detailed individually below)Total Receipts and Bank Interest to date, per the cash book 412337 81Less: Total payments and bank charges as at 31st December 2015 405,613.39

Balance as per Cash Book as at 31/12/2015 6,724.42

Viriance

Explanation:

Prepared by: az( ZI Signature L a Date 2i 1t / z

R e bgEvAA. A>Approved by_ _ _ __ _ _ _ Date

Somalia: Information Communication Technology (ICT)

Grant No- TF017371Project Number: P148588

Interim Unaudited Financial Report

List of Unpresented Cheques as at 31st December 2014

Account Number: 1020Account Name: Information Communication Technology

Date Cheque No. Details Amount US $

Total

LIST OF ERRORS BY THE BANK NOT YET ADJUSTED AS AT 31ST Dec 2015

Date Cheque No. Details Amount US $

ITotal

Reviewed by Signature Date ,

ReiwdAl,p-_____________Sgaue___________Dze_________

Approvd hr ~Signat~~ N D 00

i "TELEG%4

Somalia: Information Communication Technology (ICT)Grant No. TF017371

Project Num ber: P14858SInterim Unautdited Financial Report

Disburserents & comtract Status ReportAccount Number: 1020

Account Name: Information Commuacadon TecinologyTotal Contract Prcvius peod Curren period Total Contraet Cøntract Valuc/ Budget

COMIPONENT Buýdge iem degcription Valac/Budget Cotract Payments Conrer Ptayments Payments Balane

US$ UsS isa us us $

Recipient Executed Compoenc 2: Effciency and equiry in

access to correccivity (RE)

Opnacu ntemranonal bandwidtrh

Cornponenr 2- I_________ __________________ ________ _________

2 *2 Comunicaton rooms in kcvministries -..... . -. -

23 Projecr Mlanagem;ent Uni

Grand Total - -

SUMMARY RECEIPTS & PAYMENTS AMOUNT USD

R eceipts

Rezceipu s'm She Gr:nn4r38

Total Receipts 412.337.1l

Bank lmere. 6,15839

Toudl Receipts sad B:unk Interst 478,49 6.20

P1>vvntsr

Tot.l Cairmiave Parmer:9945;

Bank Chaeaje,and ge Charte, 183

Totl Pavcmnts, Bank Ch5are,ts & Other char.c 405,-3.39

Casha at Handl l2,382.3l

DA IW,-ancs 242

Psojet /Wloaee 3 fam.)Othres ILeo

6,Z 724.42 ç E RA

Noit TShepn>/&r ad»c ars in 'spr rrsnIs <daarsrr made; in rtsprå a,f barkt tx:auadatcrckenmadt (4trtCt?>t

*'T he aMw ta a rr4sgkd.

Prepaed bg D

Rar-eavd 5 ____________________________ Sinnmc Dta_______________0;

_________1, Tri._ '0/fl.a:tpox~~~ at a- 44 C,t ý-

Somavtklia: Inf(ration Colimmitiinicalion 'Tecliiiongy (WC)Grant No. 'TF017371

Projeet Numnher: P148,588Intleriå lntiulied Financial Report

Slatement of Sources and Applicaminn of Funds

Account Number: 1020Accomn Name: Information Comunitication Teclinology

DESCRI[PTION NOTES AMOUNT IN Ujsj1A RECEIPTS

At Malns B/F

Othnk Ircres (if åu)A2 Receipa Duing the Priod ______________ ___

Ilink ff1inest (if lm )Tofal Receipts ta Datc A +A2 =M 412,357.81

[1 DlSBit'lSI!MENTSB31 BaLances B/F

Recipim Eeumedi Component 2; Eficienrc nnde eui in acces to cneediy (R 1)21 Oxi acccs tu iaenutmuiOl bmiuhh2.2 Cnmunic3no n r in n ko. minlrl23 Proect NIPEnent Ulvil

Bank cirg cmmisison1 and o chit

Suib-kttal 3

12 Prior Periods AdimitmentsR«cijnt Exctd CmPOr- 2; E frcienccyadcqity nats to cnnrc y (R E)

21 t (Op11 AmSS to vilem <iomna bandith<i<i2 2 Commu..njeation xroom in key miniümc23 irojec M gemnent Uma

13 Disbusmn<ents Dring Ilhe P-eod

Recipient Eeed ei 7nn 2Efciceyand eqay ini cess 10 conncclivy ([R E)211 Opmaacs< tu<rintemioralbandwklth __ _______ 230,2953922 Comncaoo t inLEy minstm-

7,,002-3 Prg hyetUnkt¯

98,310[Länk cirgs, comnnisi:fis and other chirges e[ 39Sib-rotal 133 39

Total Disbursemoents o date 131+112+B3 = 84405 119Fund is laec as at 0ti Sep I-ber 2015 B3 ni 6,724.42

Rm,wcdl by _ Simanure. ____.. c

DE RAÅL

0s o °

!

!!

;