TRUST FUND GRANT AGREEMENT FUNDED BY INTERNATIONAL DEVELOPMENT ASSOCIATION - IDA MANAGED BY NGO DEVELOPMENT CENTER - NDC PROJECT TITLE: GAZA EMERGENCY CASH FOR WORK AND SELF- EMPLOYMENT SUPPORT STATEMENT OF PROJECT ACTIVITIES AND SCHEDULE OF THE MOVEMENTS OF THE PROJECT SPECIAL BANK ACCOUNT FOR THE PERIOD FROM JANUARY 1, 2021 TO DECEMBER 31, 2021 AND INDEPENDENT AUDITOR'S REPORT NGO Development Center (NDC) Gaza Emergency Cash for Work and Self-Employment Support For the Period from January 1, 2021 to December 31, 2021 - TABLE OF CONTENTS - PAGE Independent Auditor's Report 2 Financial Statement of Project Activities 4 Schedule of the Movements of the Project Special Bank Account 5 Notes to the Financial Statement of the project special bank account 6 Appendices 9 pwc Independent Auditors eport to the Managemn of NGO Developmnent Center (NIDC) Jerusae - P alestine our opinion In our opinion, the financial statement of the Project titled "Gaza Emergency Cash for Work and Self-Employment Support" (hereinafter "Project's financial statement"), funded by the International Development Association (hereinafter "IDA"), managed and implemented by NGO Development Center (hereinafter "NDC"), for the period from January 1, 2021 to December 31, 2021, is prepared, in all material respects, in accordance with the basis of accounting described in Note (2). htwhvn dt The Project's financial statement comprises the financial statement of Project's Activities, for the period from January 1, 2021 to December 31, 2021 and the notes to the financial statement, which include significant accounting policies and other explanatory information. We conducted our audit in accordance with the International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the "Auditor's Responsibilities for the Audit of the Financial Statement" section of our report. We believe the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. In?depecndencel We are independent of NDC and partners in accordance with the International Code of Ethics for Professional Accountants (including International Independence Standards) issued by the International Ethics Standards Board for Accountants (IESBA Codes). We have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA code. En1pha,sis of Mautler - Dasis ofAccoun ian Rtriction ou DisircuZion and use We draw attention to Note (2) to the financial statement, which describes the basis of accounting. The financial statement is prepared to provide information to NDC and IDA. As a result, the financial statement may not be suitable for another purpose. Our report is intended solely for NDC and IDA and should not be distributed to or used by parties other than NDC and IDA. Our opinion is not modified in respect of this matter. PricewaterhouseCoopers, Amaar Tower, Level 7, Al-Irsal, Al-Bireh, Palestine T: +970 (02) 242 0230, F: +970 (02) 242 0231, P.0 Box 1317 (Ramallah), www.pwc.com/middle-east 2 pwc I1ndepende-,nt Aulitor's ReDor to the Managem-nent of NGO Development Center (I\TDC) Jerusalem - Palestine (continuee) Respnsiilites f maageentand those charge,,d with goVerCe11U7Cfiorthfnmca I 7srCtemntC Management is responsible for the preparation of the financial information in accordance with the basis of accounting described in Note (2), and for such internal control as management determines is necessary to enable the preparation of financial information that is free from material misstatement, whether due to fraud or error. Those charged with governance are responsible for overseeing the entity's financial reporting process. Audior's respImsibilities for the aitL o t f '(1iaciaL 1Ci Our objectives are to obtain reasonable assurance about whether the financial information as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial information. As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: * Identify and assess the risks of material misstatement of the financial information, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. * Obtain an understanding of internal control relevant to the audit 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 Entity's internal control. * Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. ricewaterhouseCoopers Palestiry Limited Ramallah, Palestine April 26, 2022 3 NGO Development Center (NDC) Gaza Emergency Cash for Work and Self-Employment Support For the Period from January 1, 2021 to December 31, 2021 FINANCIAL STATEMENT OF PROJECT ACTIVITIES (All amounts in USD) Cumulative Project Actual Project Actual Project Actual For the Period For the Period For the Period from August from August 14, from January 1, 14, 2018 to 2018 to 2021 to December December 31, December 31, Notes 31, 2021 2020 2021 Revenues IDA replenishments (3) 2,550,o6 14,449,894 17,000,000 Total Revenues 255o,Lo6 14,449,894 17,000,000 Expenses Cl: Component I - Cash 2,, for Work (C4W) 222,392 12,218,092 12,440,484 C2: Component II - Internet-enabled self- employment (e-work) (5) 1,500,000 900,000 2,400,000 C3: Component III - Project Management, Monitoring and Evaluation (6) 424,o94 939,975 1,364,06 Total Expenses 21146,486 14,058,o67 16,204,553 Excess fund (7) 4o3,62o 391,827 795,447 - The above financial statement should be read in conjunction with the accompanying notes on pages 6 to S. - The financial statement on pages ( to 8) was authorized for issue by the NGO Development Center (NDC) management on --- Pi1042-a2- and were signed on their behalf Mr. Ghassan Kasabreh Mr. Hazem Qumeibi Director Finance Manager 4 NGO Development Center (NDC) Gaza Emergency Cash for Work and Self-Employment Support For the Period from January 1, 2021 to December 31, 2021 SCHEDULE OF THE MOVEMENT OF THE PROJECT SPECIAL BANK ACCOUNT (All amounts in USD) For the Period from January 1, 2021 to December Notes 31, 2021 Beginning cash balance 486,o87 Cash receipts 2,549,945 Project cash disbursements (2,159,223) Excess of cash receipts over cash (8) disbursement 876,809 - The above financial statement should be read in conjunction with the accompanying notes on pages 6 to 8. 5 NGO Development Center (NDC) Gaza Emergency Cash for Work and Self-Employment Support For the Period from January 1, 2021 to December 31, 2021 NOTES TO THE FINANCIAL STATEMENT OF THE PROJECT ACTIVITIES AND SPECIAL BANK ACCOUNT (All amounts in USD) NOTE (i) GENERAL NGO Development Center (NDC) was registered with the Ministry of Interior on March 4, 2006 under registration no. (QR 286-B) as a Palestinian Non-governmental Organization (NGO). NDC started its normal activities on July 1, 2006. NDC is working hand-in-hand with the Palestinian NGOs and the community development organizations to enhance their service delivery and build more capable and representative Palestinian civil society. NDC programs and grants empower Palestinians by providing NGOs the skills, tools and funds they require to address social needs and promote self-reliance in adversity. The organization advocates greater NGO transparency and accountability through the adoption of professional financial and management practices and promotes sector-wide coordination and sharing of best practice experiences. On August 14, 2018 NDC entered into a financing agreement "Trust Fund Grant Agreement" with International Development Association (IDA or the Bank) concerning the project titled "Gaza Emergency Cash for Work and Self-Employment Support" (the Project). Under this agreement, the IDA agreed to grant NDC an amount of USD 17,000,000 to implement the Project over the period from August 14, 2018 to June 30, 2022. The objective of the Project is to provide Target Youth in Gaza with short term employment opportunities and increased access to internet-enabled self-employment opportunities. The Project consists of the following parts: Part 1: Cash for Work (C4W) Provision of Cash for Work Sub-grants to Selected NGOs to implement Cash for Work Sub- projects employing Target Youth. Part 2: Internet-enabled self-employment (e-work) Provision of E-Work Sub-grants to Selected Service Providers to provide e-work support (skills training and on-the-job support) to Target Youth. Part 3: Project Management, Monitoring and Evaluation Strengthening the NDC's capacity for Project management, monitoring and evaluation through financing of office equipment, consultants' services, including audit, Training and Incremental Operating Costs. NOTE (2) SIGNIFICANT ACCOUNTING POLICIES a) Basis of accounting The Statement of the Project Activities and the Schedule of the Movement of the Project Special Bank Account were prepared under the modified cash basis of accounting. Under this basis, revenues are recognized when received and expenses are recognized when disbursed, modified for year-end accruals and prepayments. b) Special Bank Account As required under the signed agreement with IDA, NDC opened a special bank account for the Project as to make all withdrawals from this account which shall be solely used for the purpose of the Project. c) Foreign currency NDC maintains its books of accounts in USD which is the functional currency of NDC. Transactions denominated in other currencies were translated to USD using the exchange rate prevailing at the date of each transaction. 6 NGO Development Center (NDC) Gaza Emergency Cash for Work and Self-Employment Support For the Period from January 1, 2021 to December 31, 2021 NOTES TO THE FINANCIAL STATEMENT OF THE PROJECT ACTIVITIES AND SPECIAL BANK ACCOUNT (All amounts in USD) NOTE (3) IDA REPLENISHMENTS This amount represents the installments received from IDA: For the Period from January 1, 2021 to Date December 31, 2021 January 24, 2021 603,098 May 20, 2021 773,525 November 2, 2021 686,434 December 28, 2021 487,049 2,550,1o6 *This amount represents the actual amount transferred from the IDA before deducting the bank charges by Bank of Palestine. NOTE (4) C1: COMPONENT I - CASH FOR WORK (C4W) For the Period from January 1, 2021 to Sub-grantee Name December 31, 2021 Wefaq Society for women & Child Care 28,523 Al Tawasol Forum Society 34,049 Palestine Avenir For Childhood Foundation 25,000 Al-Azhar University Gaza 68,ooo Women's Affairs Technical Committee 23,026 Palestine Avenir For Childhood Foundation 714 Red Crescent Society for Gaza Strip (6,920) Right to Live Society 50,000 222,392 7 NGO Development Center (NDC) Gaza Emergency Cash for Work and Self-Employment Support For the Period from January 1, 2021 to December 31, 2021 NOTES TO THE FINANCIAL STATEMENT OF THE PROJECT ACTIVITIES AND SPECIAL BANK ACCOUNT (All amounts in USD) NOTE (5) C2: COMPONENT II - INTERNET-ENABLED SELF-EMPLOYMENT (E- WORK) For the Period from January 1, 2021 to Sub-grantee Name December 31, 2021 GGateway for outsourcing Information Technology 545,6oo The Islamic University Gaza - Projects 505,900 University College of Applied Sciences 448,500 1,500,000 NOTE (6) C3: COMPONENT III - PROJECT MANAGEMENT, MONITORING AND EVALUATION For the Period from January 1, 2021 to December 31, 2021 Personnel 266,303 Operating Costs 157,791 424,094 NOTE (7) EXCESS FUND This amount represents a fund surplus for the period, which will be carried forward to the next reporting period of project activity. NOTE (8) PROJECT SPECIAL BANK ACCOUNT BALANCE This represents the balance of USD 876,809 outstanding in the Project special bank account as of December 31, 2021.This bank account details are as follows: Details Bank Bank of Palestine Branch Ramallah - Al Masyoun Account number- IBAN # PS95 PALS 0471 o6oo 0400 0130 0000 3 To reconcile the project special bank account with the report of project activities: Amount Project special bank account balance 876,809 Project excess fund (795,447) Balance* 81,362 *This represents management fees incurred but still not withdrawn from the special banks account. 8 NGO Development Center (NDC) Gaza Emergency Cash for Work and Self-Employment Support For the Period from January 1, 2021 to December 31, 2021 APPENDICES 9 i i � i i i i i i i i i i i i i i � � а� й v � � .-� с� Р� �+ м о оо �+ оо �о � cv м и и о� � о и оо �,О N � N � т � о °� .�д й i о й й 'n � о й � р ,� �л � о� �'`� � с� со д= и оо �" �о 'л t� о� й 'б О N ��о и омо � n си � омо а rn д' сс� � � � c�v ri .О cV м ia а �,� ��� а� � � а w�A �+ м � оо � оо � � а м и �о rn � о и оо � � ь`> �л N м `'' � о � � � i о й й'л rn о й �п � о� <''� � с+� со д' � оо �' �о `л t� о� й U � � �' `° ``�' � n � `'� °° °O � °� д" `'� � °` д' cv ,х о � � О � о � � �, `�'� � cv м � и и � оо о� о ,� cv м д- и�о � ,� о о о о о о о о о ,� ,� ,� � � ,� �, ,� и о о о о о о о о о о о о о о о о о о о сб Z о� о: о: � � о� о� о� о� о� о� о� v� � о� � � �' U � о о о о о о о о о о о о о о о о о , у cv cv а а cv cv а cv а а а cv а а а cv а ►-� �о � � � � � � 3 � � � � � � � � 3 3 +, � �r д- д- д- � �r д- �г- д' �f- д- д- д- д- д- � �r � а+ � � с� � с� с� с� � с� � � с� � � � � � � � � � � � � � � � � � � � � ¢ � � � � д д д д д д д д д д д д д д д д д о О г-� r-� н н � i-+ ы-� Н Н и--� r-� � � � i-+ н н �о а .� N � �, � � т U �s О й � � ;�' `' � � � р � � � С7 °+�' � ° � о � � w � 'й Ш U U ''д � � � � � О гл � � О � �'' .�ШО � Г3- д Гд ,.о N р о � N z `г' � � гZ °�,' � � U � � v v � �д О ++ г..� А +� ш U� N С� � Ui U�� N О ,� сwб р� Ч р . v +� s. д р '� '"'�� ш � .х � U � � � � � � +�-+ р � � � z,� � L�i � � � О � � � U д ,�о�� � Vp] у � U � О� � v о � U �� � д а) ч� i.., �� U ш Е"' р' � `+.� G � � о � .� гi, � � .'�,, ч° �5 � ° � .н � � 'S � ,� � ч-� СЛ .-. о р � � ра � � сб � ., '+-+ U и � "�'' р � сб � � ..С� � •v �' W � О �,, � '+-' пi � С� � � .�' � �,' �' у � Uj о • U О� � �Q д ,� г-� р �, � •� � � ч-� � ш д � � и р ч-� , О �j � и � сб U � � b � р � о U . � � � � � N .�.�ч п о ^� с�б а Ш р�,О й V] �' � о й � и й ,� сы � U � '� � �1 � ^� � N� с�б ,� � � Ш с�б с�б п � � сб О ш � о .,�� � сvб с�, �� w Е-� i� � д а � w а � � г� � С7 гn � п� Z Н д W � � о Z С7 w z � cv м д- и�о � оо о� � � � � � ,� ° ,� � � � � � N�р о о о О � �, �t- и о р `r и 'r? 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