BENUE STATE INNOVATION DEVELOPMENT & EFFECTIVENESS IN THE ACQUISITION OF SKILLS (IDEAS) PROJECT IDEAS PROJECT ID No. P166239 & IDEAS PROJECT CR. No. P6514-NG Contents Page Corporate Information 2 Financial Highlights 3 Report of the Independent Auditors 4-5 Principal Accounting Policies 6 Statement of Cash Receipts and Expenditure 7 Statement of Financial Position 8 Statement of Cash Flows 9 Notes on the Accounts 10 - 11 Statement of Special Account 12 Reconciliation Statement of Amount Received from the Bank and Disbursed by the Bank 13 Schedule of Property, Plant and Equipment 14 1 ____________________________________________________________________________ BENUE STATE IDEAS PROJECT Financial Statements, 2022 BENUE STATE INNOVATION DEVELOPMENT & EFFECTIVENESS IN THE ACQUISITION OF SKILLS (IDEAS) PROJECT IDEAS PROJECT ID No. P166239 & IDEAS PROJECT CR. No. P6514-NG Corporate Information Project Management Team: > Samuel A. Kwendu Project Coordinator > Enoch A. Adagayi Project Accountant > Abel Oyache Monitoring & Evaluation Officer > Timothy Nyikyaa Procurement Officer > Solomon Bumkeng Project Internal Auditor > Ibun Martins Environmental Safeguard > Igoh Godwin Innovation Grant Manager > Doom Amokaha Gender Officer > Doom Dogoyaro Information Officer > John Ogbaji Assistant Project Accountant Implementing/ Executing Agencies: > Benue State Ministry of Education Makurdi, Benue State. Project Office: > Benue State Ministry of Education - (IDEAS) Project Independent Auditors: > ANOC Professional Services (formerly Alatta Nzewi Oyeka & Co) (Chartered Accountants) 1, Oyediran Street, Off, Bode Thomas Street, Surulere, Lagos. 0906-935-6174 Banker: > Zenith Bank Plc 2 ____________________________________________________________________________ BENUE STATE IDEAS PROJECT Financial Statements, 2022 BENUE STATE INNOVATION DEVELOPMENT & EFFECTIVENESS IN THE ACQUISITION OF SKILLS (IDEAS) PROJECT IDEAS PROJECT ID No. P166239 & IDEAS PROJECT CR. No. P6514-NG Financial Highlights Period Ended December 31, 2022 2022 Statement of Receipts and Expenditure N Receipts 543,635,238 Expenditure 468,507,899 Excess of receipts over expenditure 75,127,339 Statement of Financial Position Total assets 546,135,238 Net assets 543,635,238 3 ____________________________________________________________________________ BENUE STATE IDEAS PROJECT Financial Statements, 2022 BENUE STATE INNOVATION DEVELOPMENT & EFFECTIVENESS IN THE ACQUISITION OF SKILLS (IDEAS) PROJECT IDEAS PROJECT ID No. P166239 & IDEAS PROJECT CR. No. P6514-NG Principal Accounting Policies Period Ended December 31, 2022 The significant accounting policies adopted in arriving at the financial information are set out in these financial statements as follows:- 1 Accounting Convention: The financial statements have been prepared under the cash and accrual basis of accounting and historical cost convention. 2 Capital and Operating Costs Capital and operating costs are written off as they are incurred but disclosed separately on the statement of financial position as Project Capital and Operating Costs. 3 Revenue Recognition This represents loans, grants, or subventions received from the International Development Association (IDA), Benue State Government, and Benue State Ministry of Education - IDEAS Project, Benue State, Nigeria during the 4 Property, Plant and Equipment i. Property, plant, and equipment are stated at cost. Cost includes expenditure that is directly attributable to the acquisition of the assets. ii. The cost of the day-to-day servicing of property, plant, and equipment is recognized in the receipts and expenditure as incurred. iii. Gains and losses on the disposal of property, plant and equipment are determined by reference to their carrying values and are included in the receipts and expenditure account. 5 Depreciation Depreciation is not provided in this financial statement. Depreciation shall be charged at an appropriate date. Future annual depreciation rates to be used for the principal classes of fixed assets would be as follows: Building > 2% Plant and Machinery > 15% Motor vehicles > 20% Office Equipment > 15% Furniture and fittings > 15% Computer equipment > 33.33% 6 Foreign Currencies Transactions denominated in foreign currencies are recorded at the rates of exchange ruling at the respective dates of the transactions. At the end of the financial year, all monetary assets and liabilities denominated in foreign currencies are translated at the official exchange rates ruling on that date, and the resulting exchange differences are dealt with in the determination of income for the period. 7 Functional and Presentation Currency Items included in these Project financial statements are measured using the currency of the primary economic environment in which the project operates ('the functional currency') and the currency in which funds were received from the IDA. The financial statements are presented in the Nigerian Naira (N), which is the Project's functional currency, and US Dollar (USD) in which the grants were received from the World Bank. 8 Taxation IDEAS (component for the support to Benue State Ministry of Education) Project is not liable to pay income tax. 6 ____________________________________________________________________________ BENUE STATE IDEAS PROJECT Financial Statements, 2022 BENUE STATE INNOVATION DEVELOPMENT & EFFECTIVENESS IN THE ACQUISITION OF SKILLS (IDEAS) PROJECT IDEAS PROJECT ID No. P166239 & IDEAS PROJECT CR. No. P6514-NG Statement of Receipts and Expenditure Period Ended December 31, 2022 Note Total as at 12/31/2022 N Receipts: IDA Credit Advance 7 518,479,753 Other Income 8 25,155,485 543,635,238 Less: Expenditure Property, Plant and Equipment 2 66,582,939 Intangible Assets 3 4,000,000 Governance and Management 4 404,424,960 Other Receivables Current Liabilities 6 (6,500,000) 468,507,899 Excess of Receipts over Expenditure 75,127,339 Represented By: Cash and bank balances 5 75,127,339 The principal accounting policies on page 6 and notes on pages 10 to 14 form an integral part of these accounts. 7 ____________________________________________________________________________ BENUE STATE IDEAS PROJECT Financial Statements, 2022 BENUE STATE INNOVATION DEVELOPMENT & EFFECTIVENESS IN THE ACQUISITION OF SKILLS (IDEAS) PROJECT IDEAS PROJECT ID No. P166239 & IDEAS PROJECT CR. No. P6514-NG Statement of Financial Position As at 31st December, 2022 2022 Assets Employed Note N Property, Plant and Equipment 2 66,582,939 Intangible assets 3 4,000,000 Project Capital & Operating Expenditure 4 404,424,960 475,007,899 Current Assets: - Other receivables - - Cash and bank balances 5 75,127,339 75,127,339 Current Liabilities 6 6,500,000 Net Assets 543,635,238 Financed By IDA Credit Advance 7 518,479,753 Other income 8 25,155,485 543,635,238 - The Financial Statements on pages 7 to 14 were approved by the Project Management Team on June 29, 2023 and signed on its behalf by: Samuel A. Kwendu Enoch A. Adagayi Project Manager Project Accountant Abua Benjamin Head, PFMU The principal accounting policies on page 6 and notes on pages 10 to 14 form an integral part of these accounts. 8 ____________________________________________________________________________ BENUE STATE IDEAS PROJECT Financial Statements, 2022 BENUE STATE INNOVATION DEVELOPMENT & EFFECTIVENESS IN THE ACQUISITION OF SKILLS (IDEAS) PROJECT IDEAS PROJECT ID No. P166239 & IDEAS PROJECT CR. No. P6514-NG Statement of Cash Flows Period Ended December 31, 2022 Note 2022 N Cash Flows for the year Advances from IDA 518,479,753 IDA Credit Advance - Other income 25,155,485 543,635,238 Disbursements Property, Plant and Equipment 66,582,939 Intangible assets 4,000,000 Project capital and operating costs 404,424,960 Other Receivables - 475,007,899 Current Liabilities 6,500,000 Net Cash Inflows 75,127,339 Represented By: Cash and bank balances 5 75,127,339 - The principal accounting policies on page 6 and notes on pages 10 to 14 form an integral part of these accounts. 9 ____________________________________________________________________________ BENUE STATE IDEAS PROJECT Financial Statements, 2022 BENUE STATE INNOVATION DEVELOPMENT & EFFECTIVENESS IN THE ACQUISITION OF SKILLS (IDEAS) PROJECT IDEAS PROJECT ID No. P166239 & IDEAS PROJECT CR. No. P6514-NG Notes on the Accounts Period Ended December 31, 2022 1 The Project Innovation Development and Effectiveness in the Acquisition of Skills (IDEAS) Project is operational in six states, namely: Benue, Abia, Edo, Ekiti, Gombe and Kano and at the national level. The Benue IDEAS project developed into Benue State educational for employment (e4e) programme existent before the advent of the World Bank assisted project. The e4e framework enabled seamless and hitch-free off of the project as soon as it became implementation effective in the State. IDEAS Project is a World Bank assisted, federal government grant through the Federal Ministry of Education aimed at strengthening the labour market fit of skills development in Nigeria. The project's date of World Bank Board approval is 18th February 2021. Closing date is 30th June 2025. The IDEAS Project is organized such that it has dual national offices; National Coordinating Unit (NPCU) at the Federal Ministry of Education and Project Management Unit (PMU) at the National Board for Technical Colleges (including State and Federal) having a distinct structure, which necessitates them to process their activities with the supervision of the State Project Implementation Unit (SPIU) in the case of state technical colleges and PMU for federal technical colleges. The institutional arrangement of Benue IDEAS Project has at the apex decision making, the steering Committee chaired by the Honourable Commissioner for Education. The State Project Coordinator serves as the Secretary of the committee. Members are drawn from various segments of the stakeholders. Project Development Objectives (PDO) The PDO is to enhance the capacity of Nigerian skills development system, to provide relevant skills for the formal and informal sectors. It is made up of four components which are focused on (1) Incentivizing partnership; (2) Improving skills formation; (3) Improvingcompetency and (4) Strenghtening regulations. Benue State, in line with the implementation guidelines, selected three technical colleges from the three sentorial districts, viz; Government Technical Colleges. Aba; Government Technical College, Afaraukwu-Umuahia and Government Technical College, Ohafia as centers of excellence. Meanwhile, general activities, including procument of goods and works, for the smooth operation of the office in the college and the SPIU have been undertaken. The Project is a Federal Government of Nigeria project in collaboration with the Benue State Government through the Federal Ministry of Education and the project is being assisted by the World Bank funds. The Project Parties: i. World Bank (International Development Association) ii. Federal Ministry of Education iii. Benue State Government of Nigeria iv. Benue State Ministry of Education, Makurdi v. Zenith Bank Plc Total as at Year to 2022 2022 2 Property, Plant and Equipment N N Motor vehicle 31,850,000 31,850,000 Office renovation 19,181,839 19,181,839 Generating set - - Furniture and fittings - - Office equipment 15,551,100 15,551,100 66,582,939 66,582,939 3 Intangible assets Procurement of accounting software 4,000,000 4,000,000 10 ____________________________________________________________________________ BENUE STATE IDEAS PROJECT Financial Statements, 2022 Notes on the Accounts (Cont'd) Period Ended December 31, 2022 Total as at Year to 2022 2022 4 Project Development Capital Costs N N Grants to technical colleges 330,000,000 330,000,000 Project management reporting/ M&E 39,152,565 39,152,565 Audit and accountancy services 2,500,000 2,500,000 371,652,565 371,652,565 4i Project Development Operating Costs Consultants for project mgt and support expenses - - Servicing of Meetings 7,124,000 7,124,000 Printing and stationery 236,000 236,000 Communication costs 3,240,201 3,240,201 Monitoring and research 748,092 748,092 Media and publicity 1,140,500 1,140,500 Entertainment and other general expenses 100,000 100,000 Transport and travelling 5,904,453 5,904,453 Capacity development for public mgt of skills 7,693,367 7,693,367 Insurances 3,185,000 3,185,000 Utilities 3,000,000 3,000,000 Repairs and maintenance - Motor vehicles 386,125 386,125 Bank charges 14,657 14,657 32,772,395 32,772,395 404,424,960 404,424,960 5 Cash and Bank Balances Zenith Bank Plc - Drawn Down Control A/c (N) 75,102,247 75,102,247 Zenith Bank Plc - Domiciliary Account ($) 25,092 25,092 75,127,339 75,127,339 6 Current Liabilities Audit fees and other payables 2,500,000 2,500,000 Tokuns - Flexible software vendor 4,000,000 4,000,000 6,500,000 6,500,000 7 Funding IDA Credit account 518,479,753 518,479,753 State Government Counterpart Funding - - 518,479,753 518,479,753 8 Other Income Interest and other income 203,435 203,435 Exchange (gain) / loss 24,952,050 24,952,050 25,155,485 25,155,485 9 Statements of Special Account (SSA) US Dollars US Dollars Balance Brought forward - - IDA advance during the period 1,247,684 1,247,684 Interest paid - - Eligible expenditure paid /drawdown during the period (1,247,628) (1,247,628) 56 56 - 11 ____________________________________________________________________________ BENUE STATE IDEAS PROJECT Financial Statements, 2022 Notes on the Accounts (Cont'd) Period Ended December 31, 2022 Statement of Special Account (SA) $ $ N N Balance brought forward - - - Receipts in the year 1,247,684 523,980,859 Bank Interest - 1,247,684 523,980,859 1,247,684 523,980,859 Less: Withdrawals (1,247,628) - (523,955,829) Bank charges - - - (1,247,628) 25,030 Exchange gain / (loss) - Rate 448.08 = $1 - Balance as at 31/12/2022 56 25,030 12 ____________________________________________________________________________ BENUE STATE IDEAS PROJECT Financial Statements, 2022 Notes on the Accounts (Cont'd) Period Ended December 31, 2022 Reconciliation Statement of Amount Received and Disbursed (SOE) Schedule of Advances From World Bank Source Amount Exchange Rate Amount Date Receipts $ N 1-May IDA Bank statements 1,000,000 415 415,000,000 1-Nov IDA Bank statements 247,204 440 108,769,760 Interests earned Bank statements 480 440 211,099 IDA Bank statements - Interests earned/(Interest charge) Bank statements - Exchange gains 1,247,684 523,980,859 Schedule of Eligible Expenditure During The Period Amount Exchange Rate Amount Date CPV No. $ N 11-May Instruction No. 001 4,198 415 1,742,170 16-May Instruction No. 002 7,603 415 3,155,357 25-May Instruction No. 003 7,061 415 2,930,186 1-Jun Instruction No. 004 13,003 415 5,396,299 24-Jun Instruction No. 005 6,133 416 2,551,499 27-Jun Instruction No. 006 1,497 415 621,280 30-Jun Instruction No. 007 1,009 416 419,744 1-Jul Instruction No. 008 46,110 416 19,181,839 14-Jul Instruction No. 009 32,017 416 13,319,251 21-Jul Instruction No. 010 3,097 417 1,291,637 21-Jul Instruction No. 011 4,529 417 1,888,418 27-Jul Instruction No. 012 86,071 420 36,149,749 3-Aug Instruction No. 013 10,470 422 4,418,251 10-Aug Instruction No. 014 995 422 420,004 15-Aug Instruction No. 015 7,824 425 3,325,000 17-Aug Instruction No. 016 996 422 420,207 26-Jul Instruction No. 017 14,010 425 5,954,365 28-Sep Instruction No. 018 3,448 435 1,499,997 4-Nov Instruction No. 019 15,909 440 7,000,000 9-Nov Instruction No. 020 68,182 440 30,000,001 22-Nov Instruction No. 021 913,465 440 401,924,635 - - - Exchange difference (19,654,059) - 1,247,628 523,955,829 56 Bank changes - Balance C/fwd. 56 @ N448.08 = N1 25,030 (62) 13 ____________________________________________________________________________ BENUE STATE IDEAS PROJECT Financial Statements, 2022 BENUE STATE INNOVATION DEVELOPMENT & EFFECTIVENESS IN THE ACQUISITION OF SKILLS (IDEAS) PROJECT IDEAS PROJECT ID No. P166239 & IDEAS PROJECT CR. No. P6514-NG Schedule of Property, Plant and Equipment (PPE) Date Suppliers Value Description Location Condition N Motor Vehicle 10/6/2022 Innoson Veh. Mfg Co. Ltd 31,850,000 One Unit of Hilux PIU Good 31,850,000 Plant & Machinery PIU Good - Office Furniture and fittings PIU Good PIU Good PIU Good PIU Good PIU Good PIU Good PIU Good - Office Equipment Lot 34,732,939 PIU Good 34,732,939 Total PPE as at 31 December, 2022 66,582,939 - - 14 ____________________________________________________________________________ BENUE STATE IDEAS PROJECT Financial Statements, 2022