Reproductive and Child Health Project Phase II (RCHP2) World Bank IDA AGGF Grant TF 096812 IDA H8770, HRITF1 5054 Government of Sierra Leone Integrated Project Administration Unit, Ministry of Finance and Economic Development Financial Statements for the year ended 31 December 2015 22 July 2016 This report contains 18 pages SIEggALS Ref: 1002 ak/emj Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized
20
Embed
Financial Statements 31 December 2015documents.worldbank.org/.../RCHP-II-Financial-Statements-Dec-31-20… · for the year ended 31 December 2015 22 July 2016 This report contains
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Reproductive and Child Health Project Phase II(RCHP2)
World Bank IDA AGGF Grant TF 096812 IDA H8770, HRITF1 5054
Government of Sierra LeoneIntegrated Project Administration Unit,
Ministry of Finance and Economic Development
Financial Statementsfor the year ended 31 December 2015
22 July 2016This report contains 18 pages SIEggALS
Ref: 1002 ak/emj
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
Reproductive and Child Health Project Second PhaseWorld Bank IDA AGGF Grant TF 096812 IDA H8770, HRITF15054
Financial statementsfor the year ended 37 December 2075
Contents Page
General information 1
Background information on the project 2-4
Management's responsibility statement 5
Independent Auditor's Report 6-7
Statement of resources and expenditure 8(World Bank Funding)
Statement of income and expenditure 9
Statement of financial position 10
Statement of cash flows 11
Note to the financial statements 12-15
Report of the Auditors on the Special Account Statement 16
Reproductive and Child Health Project Second PhaseWorld Bank IDA AGGF Grant TF 096812 IDA H8770, HRITF15054
Financial statementsfor the year ended 31 December 2015
Background information on the project
On 11 October 2013, an agreement was signed between the Republic of Sierra Leone (the(Recipient) and the International Development Association (the Association) for the purpose
low of providing additional financing for activities related to the original project. The original projectwas an Africa Catalytic Growth Fund (ACGF) grant of US $20 million equivalent approved on18 June 2010. The Association agreed to extend to the recipient a grant of an amountequivalent to eight million seven hundred thousand Special Drawing Rights(SDR 8,700,000).
Purpose and Activities
The main objective of the Project is to increase utilization of a package of essential healthservices by pregnant and lactating women and children under the age of five.
The Project constitutes the second phase of the Program, and consists of the followingparts:
Part 1 Strengthening Service Delivery
(i) Local Council Grants ("LC Grants)
Provision of LC Grant to Local Councils to finance specific development projects (Subprojects) for the provision of core basic services in the health sector, including rehabilitationof health facilities, as elaborated in the respective LC annual work plans andbudgets.
(i) Performance-Based Financing Service Grants ("PBF services Grants")
Carrying out of specific development projects through the provision of PBF Services Grants toHealth Services Providers for delivery of Packages of Essential Health Services ("PEHS)comprising of preventive and curative services, such services to include, inter alia, primaryhealth care and preventive services for pregnant women, delivery and post-mortem care andimmunization for children under the age of five, and family planning services ("PEHS Subprojects).
(iii) Purchase and Distribution of long lasting impregnated nets
Local Council Grant Administration
(i) Carrying out of a program of activities aimed at building capacity of the Local GovernmentFinance Department for supervision and monitoring of implementation of Part 1(a) of theProject, including provision of training in medical waste management to Local Councils'environmental committees.
(ii) Carrying out of a program of activities aimed at improving the capacity of Local Councilsand the eligible Health Service Providers ("HSPs") for implementation of the PEHSSubprojects, including ,among others, the external verification of delivery of PEHS byHSPs Subprojects under respective PEHS Subprojects.
2
Reproductive and Child Health Project Second PhaseWorld Bank IDA AGGF Grant TF 096872 IDA H8770, HRITF15054
Financial statementsfor the year ended 37 December 2075
Background information on the project (Contd)
Part 2 Capacity Building
(a) Carrying out of a program of activities aimed at strengthening the capacity of the MoHSfor supervision, monitoring and evaluation of the Project.
(b) Carrying out of a program of activities aimed at strengthening the capacity of NjalaUniversity and University of Sierra Leone for provision of pre-service and postgraduatemedical training.
(c) Carrying out of the following program of activities:
(i) strengthening the organizational and management capacity of MoHS, including,the establishment of an integrated health project administration unit within saidMoHS;
(ii) operationalisation of the Health Services Commission;
(iii) carrying out of a comprehensive review of the legislative and regulatoryframework for the health sector with a view to identifying gaps and makingrecommendations;
liv) strengthening health management information systems; and
(v) carrying out of a comprehensive review of health sector financing, including ,among others, sustainability of the free health care initiative and development ofa social health insurance scheme, all through the provision of technical advisoryservices , operating costs and training for the purpose.
Withdrawal of Grant Proceeds
The Recipient may withdraw the proceeds of the Grant in accordance with the provisions of(a) Article Ill of the Standard Conditions; (b) the Particular Methods of Procurement of Goodsand Works; (c) the Particular Methods of Procurement of Consultant's services and (d) suchadditional instructions as the World Bank may specify by notice to the Recipient (including the"World Bank Disbursement Guidelines for Projects" dated May 2006, as revised from time totime by the World Bank and as made applicable to this Agreement pursuant to suchinstructions), to finance Eligible Expenditures as set forth in the table in the paragraph (a)below.
S3
Reproductive and Child Health Project Second PhaseWorld Bank IDA AGGF Grant TF 096812 IDA H8770, HRITF15054
Financial statementsfor the year ended 31 December 2015
Background information on the project (Contd)
Withdrawal of Grant Proceeds (contd)
The following specifies the categories of Eligible Expenditures that may be financed out of theproceeds of the Grant ("Category"), the allocations of the amounts of the Grant to each Category,and the percentage of expenditures to be financed for Eligible Expenditures in each Category:
ACGF % ofAmount of the expenditure toGrant allocated IDA H8770 HRITF1 5054 be financed
expressed in expressed in expressed in (inclusive of taxes)Category US$ US$ US$ US$
1 Goods, works, consultants' services Such % as shall beTraining and Operating Costs specified in thefinanced by LC Grants under Annual Work Plan forPart 1 (a)(i) of the Project. 5,290,000 3,060,000 - the respective Fiscal Year
2. Goods, works, consultants' services 100% of amountfor PBF Services Subprojects under of PBF services GrantPart 1 (a)(ii) of the Project. 5,700,000 5,000,000 5,000,000 disbursed expenditure
3. Goods and Services for Part 1 (a)(iii)of the Project 6,700,000 3,000,000 - 100%
4. Goods, consultants' services, Trainingand Operating Costs under Part 1(b)of the Project 1,500,000 1,000,000 - 100%
5. Goods, consultants' services, Trainingand Operating Costs under Part 2(a)of the Project 500,000 - 100%
6. Goods, consultants' services, Trainingand Operating Costs under Part 2(b)of the Project 310,000 - - 100%
7. Technical Assistance - 940,000 - 100%
Total 20,000,000 13,000,000 5,000,000
4
Reproductive and Child Health Project Second PhaseWorld Bank IDA AGGF Grant TF 096812 IDA H8770, HRITF15054
Financial statementsfor the year ended 37 December 2075
Management's responsibility statement
Management is responsible for the preparation and presentation of the financialstatements, comprising the statement of resources and expenditure, the statementof income and expenditure, the statement of financial position at 31 December 205and the statement of cash flows for the year then ended and the notes to the financialstatements, which include a summary of significant accounting policies and otherexplanatory notes in accordance with the basis of accounting described in note 1 ofthese financial statements and for such internal control as management determine isnecessary to enable the preparation of financial statements that are free from materialmisstatement whether due to fraud or error.
Approval of the financial statements
The financial statements were approved by management on .5. .2 ... 2016and signed on its behalf by:
Chairman, roject Technical Steering Project Co bnatorCommittee
5
i KPMG Sierra Leone Tlep -hoe +232-22-222061/2KPMG HOUse Tlfx +232-22-22814937 Siaka Stevens Street Ei pmig kpmg-s1 comP 0 Box '100 Inte:ret. w kpng comFreetownSiefra Leone
Independent Auditor's report to the Government of Sierra Leoneand the International Development Association (IDA)
We have audited the accompanying financial statements of the Reproductive andChild Health Project Second Phase which comprise the statement of resources andexpenditure and the statement of financial position as at 31 December 2015, and cashflows for the year then ended and a summary of significant accounting pol icies andother explanatory information as set out on pages 8 to 1 5.
Management's responsibility for the financial statements
Management is responsible for the preparation and presentation of these financialstatements in accordance with the basis of accounting described in note 1 to thefinancia statements and for such internal control as management determines isnecessary to enable the preparation of financia statements that are free from materialmisstatement whether due to fraud or error.
Auditors' responsibility
Our responsibility is to express an opinion on these financia statements based on ouraudit. We conducted our audit in accordance with International Standards on Auditingand the World Bank Guidelines for Project Audit. Those standards require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amountsand disclosures in the financial statements. The procedures selected depend on ourjudgment including the assessment of risks of material misstatement of the financiastatements whether due to fraud or error. In making those risk assessments, weconsider internal controls relevant to the entity's preparation and 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 effectivenessof the entity's internal control. An audit also includes evaluating the appropriatenessof the accounting policies used and the reasonableness of accounting estimates madeby management, as well as evaluating the overall financial statement presentation.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our opinion.
6
KPMG
Independent Auditor's Report to the Government of Sierra Leone andInternational Development Association (IDA) (continued)
Opinion
In our opinion, the financial statements present fairly in all material respects, the financialposition of the Reproductive and Child Health Project Second Phase financed by theInternational Development Association as at 31 December 2015 and of its financialperformance and its cash flows for the year then ended in accordance with the accountingpolicies as stated in note 1 of the financial statements, and the World Bank Guidelines forProject Audit.
In addition, in our opinion the accompanying special/designated account statement onpages 17 and 18 presents fairly, in all material respects, the funds received anddisbursements made from the special /designated account of the project for the yearended on 31 December 2015, in accordance with the accounting convention as describedin the note above.
Restriction of use
These financial statements have been prepared in accordance with the basis of accountingdescribed in note 1 for the purpose of determining the financial position of theReproductive and Child Health Project Second Phase for use by the management of theproject, the World Bank and the Government of Sierra Leone and the financial statementsand related auditor's report may not be suitable for another purpose. Our report is intendedsolely for the management of the Reproductive and Child Health Project Second Phase foruse by the management of the project, the International Development Association (IDA)and the Government of Sierra Leone and should not be distributed to or used by partiesother than the management of the Reproductive and Child Health Project Second Phasefor use by the management of the project, the International Development Association (IDA)and the Government of Sierra Leone.
Freetown Chartered Accountants
Date: 25
7
Reproductive and Child Health Project Second PhaseWorld Bank IDA AGGF Grant TF 096812 IDA H8770, HRITF15054
Financial statementsfor the year ended 37 December 2075
Statement of resources and expenditure (World Bank Funding)for the year ended 31 December, 2015
Notes 2015 2014USD USD
ResourcesOpening balanceIPAU Special Account 914,290 1,216,103MoHS Special Account 2,052 57,535
916,342 1,273,638
World Bank cash disbursement:
IPAU Special Account 2 2,207,057 9,914,699MOHS Special Account 2 939,821 1,398,100
3,146,878 11,312,799
Other incomeInterest earned 139 134
Other receipts 287 1,415
426 1,549
Total resources 4,063,646 12,587,986
ExpenditureInput based financing 5 (603,394) (2,911,962)Performance based financing 6 (1,681,806) (7,120,204)
Supervision (M& E) 7 (642,603) (473,713)Medical training 8 (136,949) (981,419)
Local councils administration 9 (440,418) (184,346)
Technical assistance (38,648)
Total expenditure (3,543,818) (11,671,644)
Balance as at 31 December 519,828 916,342
Sh
These finan ate ents were approved on ... ...-........... 2016
The notes on pages 12 to 15 are an integral part of these financial statements
11
Reproductive and Child Health Project Phase I1 (RCHP 2)World Bank IDA AGGF Grant TF 096812 IDA H8770, HRITF15054
Financial statementsfor the year ended 31 December 2015
Notes to the financial statements
1. Significant accounting policies
The principal accounting policies applied in the preparation of these financial statementsare set out below. The policies have been consistently applied unless otherwise stated.
1.1 Basis of accounting
The statement of resources and expenditure is prepared on the basis of cash accountingwhereby income is recognised on the receipt of cash and cash equivalents and expenditureis recognised on the disbursement of cash and cash equivalents.
1.2 Foreign currency transactions
(i) Functional and presentation currency
The functional currency is the local currency in Sierra Leone which is the Leone. TheProject has however adopted the United States Dollars (US$) as its presentationcurrency as most of its transactions are denominated in US Dollars. Transactions in allother currencies are therefore considered to be foreign currency transactions.
(ii) Transactions and balances
Foreign currency transactions are translated into the functional currency using the midexchange rates prevailing on the dates of the transactions. Foreign exchange gainsand losses resulting from the settlement of such transactions denominated in foreigncurrencies are recognised in the Project Income and Expenditure Account.
1.3 Non-current assets
Plant and equipment are expensed on acquisition by the Coordinating Unit. The financialstatements therefore have no non-current assets.
1.4 Income
Funding from the World Bank is held in a deferred income account when received and onlyrecognized in the Project's Income and Expenditure Account when utilised.
12
Reproductive and Child Health Project Phase I (RCHP 2)World Bank IDA AGGF Grant TF 096872 IDA H8770, HRITF15054
Financial statementsfor the year ended 37 December 2015
Bo District Council 142,870 284,987Bombali District Council 101,294 137,051Bonthe District Council 175 114,657Kailahun District Council 109,511 183,073Kambia District Council 72,049 133,576Kenema District Council 118,316 274,214Koinadugu District Council 44,023 190,716Kono District Council 62,060 133,751Western Area District Council 89,299 894,947Tonkolili District Council 118,811 261,920Pujehun District Council 66,003 138,739Moyamba District Council 105,710 193,338Port Loko District Council 134,319 259,085PCMH 184,218 -Ola During Children Hospital 199,255Other activities 53,481 -PBF external verification 80,412 320,150Ebola 3,600,000
1,681,806 7,120,204
14
Reproductive and Child Health Project Phase // (RCHP 2)World Bank IDA AGGF Grant TF 096872 IDA H8770, HRITF75054
Financial statementsfor the year ended 31 December 2015
Specialists, lectures and institution - 191,278Vehicle and equipment 133,868 744,565Operating cost 3,081 45,576
136,949 981,419
9. Local council administration2015 2014USD USD
Motor vehicle - -Bank charges 14,536 1,868Communication 4,147 5,080Printing and stationery 22,450 8,901Training and capacity building 194,491 48,366Travelling - 23,921Consultancy fee 75,000 34,699Exchange gain/loss - (1,309)Audit fees 14,672 8,713Office supplies 71,418 34,458Minor equipment 14,247 3,514Salaries and allowances 29,457 16,135
440,418 184,346
10. Commitments
Commitments at the reporting date was Le 38,553,750 in respect of fees for the audit ofthe project financial statements for the year ended 31 December (2014: nil)
11. Contingent liabilities
Contingent liabilities at the reporting date were nil (2014: nil)
15
KPMG Sierra Leone Telephone +232-22-222061/2KPMG House Telefax +232-22-22814937 Siaka Stevens Street Email: [email protected] 0. Box 100 Internet wwwkprng.comFreetownSierra Leone
Report of the Auditors on the Special Account StatementUS Dollar Account numbers 17-011736619-01 and 001-116754-03-00-01
We have audited the accompanying Special Account statements numbered 17-011736619-01and 001-116754-03-00-01 as set out on pages 17 to 18 established under the provisions of theIDA Programmed for the period 1 January 2015 to 31 December 2015. The Project'sManagement is responsible for the preparation and presentation of the Special Accounts. Ourresponsibility is to express an opinion on the Accounts based on our audit.
We conducted our audit in accordance with International Standards on Auditing. Thosestandards require that we plan and perform the audit to obtain reasonable assurance that theSpecial Account statements are free of material misstatement. We believe that our auditprovides a reasonable basis for our opinion.
In our opinion, the Special Account statements give a true and fair view of the financial positionas at 31 December 2015.
Freetown Chartered Accountants
Date:1
16
f>' K< P0>3 0 > r Pr, r t r1e C' D D I
Reproductive and Child Health Project Phase II (RCHP 2)World Bank IDA AGGF Grant TF 096812 IDA H8770, HRITF15054
Financial statementsfor the year ended 37 December 2075
Special Account Statement
Integrated Project Administration Unit (IPAU)Account No. 17-011736619-01Depository Bank Rokel Commercial Bank (SL) LimitedAddress Freetown, Sierra LeoneRelated Grant Agreement TF 096812Currency United States Dollar
Reproductive and Child Health Project Phase II (RCHP 2)World Bank IDA AGGF Grant TF 096812 IDA H8770, HRITF15054
Financial statementsfor the year ended 37 December 2015
Special Account Statement
Ministry of Health and Sanitation (MoHS)Account No. 001-116754-03-00-01Depository Bank Sierra Leone Commercial Bank (SL) LtdAddress Freetown, Sierra LeoneRelated Grant Agreement TF 096812Currency United States Dollar