MINISTRY P.O. Box PMB 60, Ministries, Accra s OF Digital Address: GA- 298 -2662 SANITATION AND WATER Kindly quote this number and date on all correspondence My Ref No. _PCUlGAMA/GENIEAPl23/239 R E P U B LI C OF G H A N A RESO U RCES Your Ref No.- - - - - - - - Date - 29th June 2023 GAMA Sanitation and Water Project- Additional Financing IDA Credi No. 67810-GH Audited Accounts for the 12 Months Ended 31st December 2022 We forward herewith copy(ies) of the audited accounts of GAMA Sanitation and Water Project- Additional Financing for 12 months ended 31st December 2022 for your information and retention. Please acknowledge receipt. George Asiedu Project Coordinator MSWR-PCU Distribution: The Hon. Minister Ministry of Finance Accra (World Bank Desk) The Controller and Accountant-General Controller and Accountant-General's Dept Accra The Auditor General Audit Service Accra The Task Team Leader GAMA Sanitation and Water Project World Bank Accra The Chief Director Ministry MSWR The Managing Director Ghana Water Company Ltd Accra Tel: +2 33 (0) 302 630 907 Email . info@msw r.gov.gh Website: www msw r. gov .gh GREATER ACCRA METROPOLITAN AREA SANITATION AND WATER PROJECT-AF IDA CREDIT NO. 67810-GH FINANCIAL STATEMENTS AND MANAGEMENT LETTER 31sT DECEMBER, 2022 Lbwp BENNING, ANANG & PARTNERS (Chartered Accountants and Management Consultants) Abavana House, Abavana Junction 56 Kotobabi Road P. 0. Box AN 12266 Accra-North Ghana BENNING, ANANG & PARTNERS (Chartered Accountants & Management Consultants) Abavana House, Abavana Junction Telephone +233(0)302 235669, 237205, 246626-7 56 Kotobabi Road, KotGPOBAbi Mobile +233(0)302 244-606509, 242-206406 P. 0. Box AN 12266 Fax +233(0)302 246628 Accra-North E-mail baapl905@hotmail.com Ghana GA-022-0442 TIN No. C0003734072 Our Ref: MIS:101 Your Ref: 27th June, 2023 The Project Coordinator Project Coordinating Unit Ministry of Sanitation and Water Resources Within the Premises of Institute of Local Government Studies (ILGS) Ogbojo Near Madina New Road Estate Accra, Ghana Dear Sir, GREATER ACCRA METROPOLITAN AREA SANITATION AND WATER PROJECT-AF IDA CREDIT NO. 67810-GH FINANCIAL STATEMENTS AUDIT: 31ST DECEMBER, 2022 We have completed the audit of the Financial Statements of the Greater Accra and Greater Kumasi Metropolitan Area Sanitation and Water Project-AF for the year ended 31st December, 2022 and have the pleasure of forwarding the Financial Statements and their related management letter to you. Yours faithfully, Benmng, Anang Partners Chartered Accountants 11NONGANANG & PARINE" 'CHARTERED ACCOUNTANTS Principal place of business at which a list of partners' name Is available: Abavana House, Abavana Junction, 56 Klobabl Road, Kolobabl, Accra-Ghana JKB GREATER ACCRA METROPOLITAN AREA SANITATION AND WATER PROJECT-AF IDA CREDIT NO. 67810-GH FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER, 2022 Table of Contents Page Corporate Information 1 Report of Project Management Team 3 Independent Auditors' Report on the Financial Statements 4 Statement of Income and Expenditure 7 Statement of Sources and Uses of Funds 8 Statement of Financial Position 9 Notes to the Financial Statements 10 1 GREATER ACCRA METROPOLITAN AREA SANITATION AND WATER PROJECT-AF IDA CREDIT NO. 67810-GH GENERAL INFORMATION Steering Committee Members: Hon. Cecilia AbenaDapaah Minister, Sanitation and Water Resources Hon Chinnialssahaque Deputy Minister, Sanitation and Water Resources Noah Tumfo Chief Director, Sanitation and Water Resources Harold Esseku World Bank Representative Dr. Clifford Braimah Managing Director, Ghana Water Company Ltd Yvonne Quansah Ministry of Finance, External Resource Mobilization and Economic Relations Division (ERMER) Nelly Mireku Ministry of Finance, WB Unit Selected GAMA MMAS: Hon. Elizabeth Kwatsoo Tawiah Sackey Accra Metropolitan Assembly Hon. YahanneAshitey Tema Metro Assembly Hon Elizabeth Kaakie-Mann Ga East Municipal Assembly Hon Evelyn NaaAdjeley TwumGyamera Ledzokuku Municipal Assembly Hon Jennifer Dede Adjabeng La Nkwantanan Madina Municipal Assembly Hon. Joshua Nii Bortey Krowor Municipal Assembly Hon. Solomon Niikoi La Dade-Kotopon Municipal Assembly Hon. Aminu Mohammed Zakari Ayawaso North Municipal Assembly Hon. Samuel OkoeAmanquah KponeKatamanso Municipal Assembly Hon. Anna Adukei Addo Tema West Municipal Assembly Hon. Clement Wilkinson Ga West Municipal Assembly Hon. Patrick Kumor Weija Gbawe Municipal Assembly Hon. D. A. Nii-Noi Adumuah Adentan Municipal Assembly Hon. Abubakar Sadick Ahmed La Nkwantanan-Madina Municipal Assembly Hon. Simon Sekyere Ga North Municipal Assembly Hon. Joseph Nyarni Stephen Ga South Municipal Assembly Hon. Mohammed Bashiru Ga Central Municipal Assemble Hon. Hajia Salma Sani Mohammed Ayawaso East Municipal Assembly Hon. Boye Laryea Okaikoi North Municipal Assembly Hon. George C. Blay Ablekuma West Municipal Assembly Hon. Mariama Amui AblekumaCentral Municipal Assembly Hon. Kofi Ofori Ablekuma North Municipal Assembly 2 GREATER ACCRA METROPOLITAN AREA SANITATION AND WATER PROJECT-AF IDA CREDIT NO. 67810-GH GENERAL INFORMATION (continued) GKMA: Samuel Pyne Kumasi Metropolitan Assembly Abraham Antwi Oforikrom Municipal Assembly Kennedy Kwasi Kankam Asokore-Mampong Municipal Assembly Samuel Oduro Frimpong Ejisu Municipal Assembly Akwannusa Gyimah Asokwa Municipal Assembly Maxwell Ofosu Boakye Suame Municipal Assembly Lord Inusah Lansah Old Tafo Municipal Assembly Richard Agyenim Boateng Kwadaso Municipal Assembly IsaacBaasan Yaw Regional Coordinating Council, Kumasi Rev. Emmanuel Addo Ghana Education Service/R-SHEP Benard SenanuKlove CONIWAS Nana KusiAbabio Oyokohene, Kumasi Project Management Team: Ing. George Asiedu Project Coordinator Stephen Ekow Graves Project Accountant Samuel Oteng Procurement Specialist George Bright Awudi Environmental Safeguard Specialist Emmanuel Acquah Social Safeguards Specialist Gabriel Engmann Sanitary Engineer Kwadwo Antwi Gyasi Sanitation Specialist Emmanuel Addai Knowledge Management Expert Kingsley Amoako-Attah Monitoring and Evaluation Officer Address: Project Coordinating Unit (Ministry of Sanitation and Water Resources) Institute of Local Government Studies Ogbojo East Legon Accra Ghana Digital Address: GM-040-9656 Auditors: Benning, Anang & Partners (Chartered Accountants & Management Consultants) Abavana House, Abavana Junction 56 Kotobabi Road, Kotobabi P. 0. Box AN 12266 Accra-North Ghana Bankers: Bank of Ghana (PCU/MSWR) Ecobank Ghana PLC (PCU/MSWR) National Investment Bank Limited (Ghana Water Company Limited) 3 GREATER ACCRA METROPOLITAN AREA SANITATION AND WATER PROJECT-AF IDA CREDIT NO. 67810-GH REPORT OF THE PROJECT MANAGEMENT TEAM OF THE GREATER ACCRA METROPOLITAN AREA (GAMA) SANITATION AND WATER PROJECT-AF The Project Management Team has the pleasure in submitting their report and the audited Financial Statements of the Greater Accra Metropolitan Area (GAMIA) Sanitation and Water Proj ect-AF for the year ended 31st December, 2022. Statement of Project Management Team's Responsibilities The Project Management Team is responsible for ensuring that the Financial Statements of the Project are prepared, in all material respects, in accordance with the adopted accounting policies. In preparing these Financial Statements, the Project Management Team has selected suitable accounting policies and then applied them consistently, made judgements and estimates that are reasonable and prudent and followed the accounting policies described on Note 1 to the Financial Statements. The Project Management Team is responsible for ensuring that the Project keeps proper accounting records that disclose with reasonable accuracy at any time the financial position of the Project. The Team is also responsible for safeguarding the assets of the Project and taking reasonable steps for the prevention and detection of fraud and other irregularities. Principal activities The principal activities under the Project are stated as follows: * Provision of environmental sanitation services to priority low income areas of Greater Accra Metropolitan Area and Greater Kumasi Metropolitan Area. * Expansion of the water distribution network in Greater Accra Metropolitan Area and Greater Kumasi Metropolitan Area and improvement in Operational Efficiency. * Planning, improvement and expansion of environmental sanitation services. * Project Management and Institutional strengthening. Financial results The income statement shows an excess of income over expenditure of US$3,183,104. BY ORDER OF THE PROJECT MANAGEMENT TEAM: Project Coordinator .........7.................. Signature.......................... 4~mz.SQ..2023 4 ba BENNING, ANANG & PARTNERS (Chartered Accountants & Management Consultants) Abavana House, Abavana Junction Telephone +233(0)302 235669, 237205, 246626-7 56 KotGPOBAbi Road, KotGPOBAbi Mobile +233(0)302 244-806509, 242-206406 P. 0. Box AN 12266 Fax +233(0)302 246628 Accra-North E-mail baapl905@hotmail.com Ghana GA-022-0442 TIN No. G0003734072 Our Ref: MIS:101 Your Ref: INDEPENDENT AUDITORS' REPORT TO THE MINISTRY OF SANITATION AND WATER RESOURCES AND GREATER ACCRA METROPOLITAN AREA (GAMA) SANITATON WATER PROJECT-AF Report on Financial Statements Opinion We have audited the accompanying Financial Statements of Greater Accra Metropolitan Area Sanitation and Water Project-AF for the year ended 31st December, 2022 set out on pages 7 to 15. These Financial Statements comprise the Statement of Financial Position at 31st December, 2022 the Statement of Income and Expenditure and Statement of Sources and Uses of Funds for the year ended, and summary of significant accounting policies and other explanatory notes. In our opinion, the Financial Statements audited by us, which are in agreement with the books of accounts in all material respects and conform with International Financial Reporting Standards (IFRS), give a true and fair view of the Financial Position of the Greater Accra Metropolitan Area Sanitation and Water Project-AF, as at 31st December, 2022 and of the Statement of Income and Expenditure and the Statement of Sources and Uses of Funds for the year ended. Basis of Opinion We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Greater Accra Metropolitan Area Sanitation and Water Project-AF in accordance with the International Code of Ethics for Professional Accountants (including International Independence Standards) (the Code) issued by the International Ethics Standards Board of Accountants (IESBA) and we have fulfilled our other ethical responsibilities in accordance with the Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Emphasis of matter - Basis of accounting and restriction on distribution and use We draw attention to Note 1 to the Financial Statements, which describes the basis of accounting. The Financial Statements are prepared to assist the Project Coordinating Unit, in complying with the financial reporting provisions of the contract referred to above. As a result, the Financial Statements may not be suitable for another purpose. Our report is intended solely for the Ministry of Sanitation and Water Resources (MSWR) and the World Bank and should not be distributed to or used by parties other than the Ministry of Sanitation and Water Resources (MSWR) and the World Bank. Our opinion is not modified in respect of this matter. Project Steering Committee's Responsibility for the Financial Statements Project Steering Committee of Greater Accra Metropolitan Area Sanitation and Water Project-AF under the Ministry of Sanitation and Water Resources is responsible for the preparation and fair presentation of these Financial Statements in accordance with World Bank financial reporting guidelines and International Financial Reporting Standards and for such internal control as the Project Steering Committee of Greater Accra Metropolitan Area Sanitation and Water Project-AF determines as necessary to enable the preparation of Financial Statements that are free from material misstatement, whether due to fraud or error. 5 ba BENNING, ANANG & PARTNERS (Chartered Accountants & Management Consultants) INDEPENDENT AUDITORS' REPORT TO THE MINISTRY OF SANITATION AND WATER RESOURCES AND GREATER ACCRA METROPOLITAN AREA (GAMA) SANITATON WATER PROJECT-AF - (continued) In preparing the Financial Statements, the Project Steering Committee of Greater Accra Metropolitan Area Sanitation and Water Project-AF is responsible for assessing the Project's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Project Steering Committee of Greater Accra Metropolitan Area Sanitation and Water Project-AF either intends to liquidate the Project or to cease operations, or has no realistic alternative but to do so. The Project Steering Committee of Greater Accra Metropolitan Area Sanitation and Water Project- AF is responsible for overseeing the Project's financial reporting process. Auditors' Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the Financial Statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' 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 International Standards on Auditing 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 the Financial Statements. As part of an audit in accordance with International Standards on Auditing, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: * Identify and assess the risks of material misstatement of the Financial Statements, 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 the Project's internal control. * Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Project Steering Committee. * Conclude on the appropriateness of the Project Steering Committee's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Project's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors' report to the related disclosures in the Financial Statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors' report. However, future events or conditions may cause the Project to cease to continue as a going concern. * Evaluate the overall presentation, structure and content of the Financial Statements, including the disclosures, and whether the Financial Statements represent the underlying transactions and events in a manner that achieves fair presentation. 6 ba BENNING, ANANG & PARTNERS (Chartered Accountants & Management Consultants) INDEPENDENT AUDITORS' REPORT TO THE MINISTRY OF SANITATION AND WATER RESOURCES AND GREATER ACCRA METROPOLITAN AREA (GAMA) SANITATON WATER PROJECT OF GHANA-AF - (continued) We communicate with the Project Steering Committee 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. Other Reporting Requirements In accordance with the Terms of Reference for this audit, we also confirm that the programme expenditure was: * Incurred in conformity with the Financing Agreement, approved programme work plan and budgets; and * Supported by approved payment vouchers and other supporting documents. The Engagement Partner on the audit resulting in this independent auditors' report is Festus Eugene Adu Mantey (ICAG/P/1038) Benning, nang Pa riners (ICAG/F/2023/045) Chartered Accountants Abavana House, Abavana Juncti on Accra Ghana .................. ...........2023 7 GREATER ACCRA METROPOLITAN AREA SANITATION AND WATER IDA CREDIT NO. 67810 - GH STATEMENT OF INCOME AND EXPENDITURE FOR THE YEAR ENDED 31ST DECEMBER, 2022 PCU GWCL TOTAL TOTAL IDA IDA 2022 2021 Note US$ US$ US$ US$ Income 2a 20,300,000 5,220,223 25,520,223 24,700,000 Other Income 2b 691,078 131,373 822,451 416,603 20,991,078 5,351,596 26,342,674 25,116,603 Expenditure Category 1: Component 1 3a 11,038,345 - 11,038,345 1,788,775 Component 3 3b 1,051,558 - 1,051,558 3,166,757 Component 4 3c 7,227,659 - 7,227,659 5,513,736 Category 2: Component 2 3d - 3,805,066 3,805,066 3,084,159 Category 3: 5,051,301 Foreign exchange loss 36,942 - 36,942 - Total Expenditure 19,354,504 3,805,066 23,159,570 18,604,728 Surplus/(deficit) 1,636,574 1,546,530 3,183,104 6,511,875 The notes on pages 10 to 15 are integral part of these Financial Statements. 8 GREATER ACCRA METROPOLITAN AREA SANITATION AND WATER PROJECT IDA CREDIT NO. 67810 - GH STATEMENT OF SOURCES AND USES OF FUNDS FOR THE YEAR ENDED 31ST DECEMBER, 2022 PCU GWCL TOTAL TOTAL IDA IDA 2022 2021 Note US$ US$ US$ US$ Sources 4 24,185,672 8,354,338 32,540,010 25,116,603 Uses Category 1: Component 1 5a 10,699,792 - 10,699,792 1,788,775 Component 3 5b 1,051,558 - 1,051,558 3,166,757 Component 4 5c 7,248,458 - 7,248,458 5,513,736 Category 2: Component 2 5d - 3,805,066 3,805,066 3,084,159 Category 3: 5e - - - 5,051,301 Total Uses 18,999,808 3,805,066 22,804,874 18,604,728 Available fund balance 5,185,864 4,549,272 9,735,136 6,511,875 Represented by: Cash and Cash equivalents 7 5,185,864 4,549,272 9,735,136 6,511,875 5,185,864 4,549,272 9,735,136 6,511,875 The notes on pages 10 to 15 are integral part of these Financial Statements. 9 GREATER ACCRA METROPOLITAN AREA SANITATION AND WATER PROJECT IDA CREDIT NO. 67810 - GH STATEMENT OF FINANCIAL POSITION AS AT 31ST DECEMBER, 2022 PCU GWCL TOTAL TOTAL IDA IDA 2022 2021 Assets Note US$ US$ US$ US$ Project expenditure 6 34,895,609 6,889,225 41,784,834 18,604,728 Cash and cash equivalents 7 5,185,864 4,549,272 9,735,136 6,511,875 Total Assets 40,081,473 11,438,497 51,519,970 25,116,603 Liabilities Account Payables 8 60,693 - 60,693 Net Assets 40,020,780 11,438,497 51,459,277 25,116,603 Financed By: IDA 9 39,000,000 11,220,223 50,220,223 24,700,000 Other Income 9 1,020,780 218,274 1,239,054 416,603 Accumulated Fund Balance 40,020,780 11,438,497 51,459,277 25,116,603 The Financial Statements on pages 7 to 15 were approved by Project Management Team 0fnjLAUuk. ....2023. Chief Director, MSWR: / 4l, (/,- Signature: Project Accountant: q1A Signature: Managing Director (GWCL): b< 6(-7"A' ignature: e Chief Manager, Finance (GWCL) S A Signature: The notes on pages 10 to 15 are integral part of these Financial Statements. 10 GREATER ACCRA METROPOLITAN AREA SANITATION AND WATER PROJECT-AF IDA CREDIT NO. 67810-GH FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER, 2022 NOTES TO THE FINANCIAL STATEMENTS PROJECT BACKGROUND 1.1 Reporting Entity The Greater Accra Metropolitan Area (GAMA) Sanitation and Water Project-AF is a four-year project funded by the World Bank to increase access to improved sanitation and improved water supply in the Greater Accra Metropolitan Area (GAMA) and Greater Kumasi Metropolitan Area (GKMA), with emphasis on low income communities and to strengthen management of environmental sanitation in the GAMA and GKMA. The project was signed on November 12, 2020 and became effective on 21st April, 2021 and would end in 31st December, 2023. The project's objectives come under the following components. Provision of environmental sanitation services to priority low income areas of the GAMA and GKMA The objectives of this component is to increase the access to environmental sanitation and water supply services in low income areas of the GAMA and GKMA with a strong focus on liquid sanitation. Expansion of the water distribution network in the GAMA and GKMA and improvement in operational efficiency The objective of this component is to improve and expand the water distribution network in order to provide piped water to the targeted people living in low income communities in the GAMA and GKMA. Planning, improvement and expansion of environmental sanitation services The objective of this component is to develop integrated GKMA-wide plans for liquid and solid waste management and drainage, and to finance critical elements to improve collection, treatment and disposal of waste water and septic sludge. Project Management and Institutional strengthening This component will provide technical assistance (TA) to GAMA and GKMA municipal, metropolitan assemblies and national institutions, including the promotion of private sector initiatives. It will also support the development of social accountability mechanisms aimed at applying pressure on those responsible for the services to ensure they are properly operated and maintained. 11 GREATER ACCRA METROPOLITAN AREA SANITATION AND WATER PROJECT-AF IDA CREDIT NO. 67810-GH FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER, 2022 NOTES TO THE FINANCIAL STATEMENTS - (continued) 1.2 Accounting policies The following are the significant accounting policies adopted in the preparation of these Financial Statements: a. Basis of preparation The Financial Statements have been prepared on the historical cost convention in accordance with the World Bank Financial Reporting Guidelines and in compliance with the Credit Agreement Number 678 10-GH and on modified cash basis of accounting. b. Income Income is recognized when received into the respective designated accounts. c. Project expenditure The expenditure incurred from the grant fall under specific components and categories. Expenditure represents payments for goods and services rendered to the programme, based on the approved Annual Work Plan (AWP). It is recognised when actual payments are made. d. Fixed assets Fixed assets represents the expenditure incurred in acquiring property and equipment for use by the Project Coordinating units and Ghana Water Company Limited. Fixed assets are expensed in the year of acquisition. e. Foreign currency (i) Fundamental and presentation currency The Financial Statements are presented in US Dollars (US$) which is the functional currency of the programme. (ii) Transactions and balances Transactions in local currencies are translated to US Dollars (US$) at the appropriate rates of exchange prevailing on the date of the transaction. Gains or losses arising from foreign currency transaction are credited to or charged against expenditure. f. Receivables This represents advances given to staff for the implementation of activities which are unretired at the end of the period. g. Non capital expenditure These comprise of cumulative project expenditure incurred on Works, Capacity Buildings and Consultancy which has been capitalised. h. Funds received and expenditure i. Funds received are accounted for on cash basis. ii. Expenditure is accounted for on cash basis. The expenditure is capitalised in the Statement of Financial Position. 12 GREATER ACCRA METROPOLITAN AREA SANITATION AND WATER PROJECT - AF IDA CREDIT NO. 67810 - GH FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER, 2022 NOTES TO THE FINANCIAL STATEMENTS (continued) PCU GWCL TOTAL TOTAL IDA IDA 2022 2021 2 a) Income US$ US$ US$ US$ International Development Association 20,300,000 5,220,223 25,520,223 24,700,000 20,300,000 5,220,223 25,520,223 24,700,000 2 b) Other Income Beneficiary Contribution 691,078 - 691,078 329,702 Opening balance - - 13,287 Interest Received - 131,373 131,373 73,614 691,078 131,373 822,451 416,603 3 Expenditure Category 1 a. Component 1 Household Toilets- 30,000 Nr in GKMA, 12,000 HHT in GAMA 4,614,203 - 4,614,203 1,387,833 Institutional Toilets: 30 units in GAMA and 120 units in GKMA 6,424,142- 6,424,142 400,942 11,038,345 - 11,038,345 1,788,775 b. Component 3 Construction of Simplified Sewerage System 73,230 - 73,230 1,737,527 Processing of Sludge from Digesters - - Preparation of Plans for Improvement of Drainage Services 978,328 - 978,328 1,429,230 Cost overrun on Parent Project - - 1,051,558 - 1,051,558 3,166,757 c. Component 4 Strengthening of WASH sector Institutions 1,343,262 - 1,343,262 94,857 Project Management 1,592,684 - 1,592,684 1,140,227 Behaviour Change Communication & Knowledge Management 151,034 - 151,034 649 Capacity Building (Training) 1,631,603 1,631,603 1,218,105 Operational Management - - - PCU 1,053,321 - 1,053,321 381,676 CBT/EHSD/MSWR 325,522 - 325,522 28,252 MMA'S 175,303 - 175,303 3,309 Conferences, Workshops & Seminars 104,162 - 104,162 360,190 Education/Sensitization - - - 232,897 Equipment 850,768 -0850,768 2,053,574 7,227,659 - 7,227,659 5,513,736 Category 2 d. Component 2 Improvement in Operational efticiency (GWCL) - Improvement in Distribution network - 3,805,066 3,805,066 3,084,159 Provision of House Connections - - - - Support for Low-Income Customers Support unit - - - - 3,805,066 3,805,066 3,084,159 13 GREATER ACCRA METROPOLITAN AREA SANITATION AND WATER PROJECT - AF IDA CREDIT NO. 67810 - GH FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER, 2022 NOTES TO THE FINANCIAL STATEMENTS (continued) IDA IDA 2022 2021 4 Resources US$ US$ US$ US$ Bank balance as at 1st January 2022 3,509,133 3,002,742 6,511,875 13,287 Prior year adjustment (314,539) - (314,539) Other balances as at 1st January 2022 Fund balances at the MMAs Other receivables as at 1st January 2022 - - Sources during the year Funds received in the year (Note 2a) 20,300,000 5,220,223 25,520,223 24,700,000 Exchange gain - - - - Other Income (Note 2b) 691078 131,373 822451 403,316 Total 24,185,672 8,354,338 32,540,010 25,116,603 5 Expenditure Category 1 a. Component 1 Household Toilets- 30,000Nr in GKMA, 12,000 HHT in GAMA 4,278,478 - 4,278,478 1,387,833 Institutional Toilets: 30 units in GAMA and 120 units in GKMA 6,421,314 6,421,314 400,942 10,699,792 - 10,699,792 1,788,775 b. Component 3 Construction of simplified sewerage systems 73,230 - 73,230 1,737,527 Processing of sludge from digesters - - - Preparation of plans for Improvement of drainage services 978,328 - 978,328 1,429,230 Cost overrun on Parent Project - - 1,051,558 - 1,051,558 3,166,757 c. Component 4 Strengthening of WASH sector institutions 1,327,219 - 1,327,219 94,857 Project Management 1,592,684 - 1,592,684 1,140,227 Behaviour Change Communication & Knowledge Management 151,034 151,034 649 Capacity Building (Training) 1,631,603 - 1,631,603 1,218,105 Operational Management - - - PCU 1,090,263 - 1,090,263 381,676 CBT/EHSD/MSWR 325,422 - 325,422 28,252 MMA'S 175,303 - 175,303 3,309 Conferences, Workshops & Seminars 104,162 - 104,162 360,190 Education/Sensitization - 232,897 Equipment 850,768 -850,768 2,053,574 7,248,458 - 7,248,458 5,513,736 d. Category 2 Component 2 Improvement in Opreational Efficiency (GWCL) Improvement in distribution network 3,805,066 3,805,066 3,084,159 Provision of house connections Support for low-income customer support unit - - - - 3,805,066 3,805,066 3,084,159 e. Category 3 - - - 5,051,301 Total uses 18,999,808 3,805,066 22,804,874 18,604,728 14 GREATER ACCRA METROPOLITAN AREA SANITATION AND WATER PROJECT - AF IDA CREDIT NO. 67810 - GH FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER, 2022 NOTES TO THE FINANCIAL STATEMENTS (continued) PCU GWCL TOTAL TOTAL 6 Project Expenditure IDA IDA 2022 2021 Capital Expenditure US$ US$ US$ US$ Civil Works- Construction 19,851,769 488,470 20,340,239 9,147,593 Pipes and Meters - 3,599,118 3,599,118 2,880,990 Motor Vehicles 2,390,169 543,642 2,933,811 1,660,612 Office Equipment 450,264 60,739 511,003 329,263 Office Furniture 63,909 15,012 78,921 63,699 Total capital expenditure 22,756,111 4,706,981 27,463,092 14,082,157 Non-Capital Expenditure Consultancy 3,458,052 1,287,145 4,745,197 954,194 Fees-Contract Staff 839,000 - 839,000 353,000 Fees-Admin Staff 1,308,256 119,322 1,427,578 520,864 Training 2,508,091 - 2,508,091 830,368 Fuel 250,218 227,632 477,850 160,446 Vehicle running and maintenance 224,373 277 224,650 92,501 Office maintenance costs (Building and equipment) 22,130 6,336 28,466 4,934 Workshops, meetings and conferences 840,040 136,997 977,037 533,496 Office running costs 373,816 301,171 674,987 165,511 Printing and Stationery 228,519 - 228,519 76,831 Allowances (T&T and per diem) 686,413 3,756 690,169 308,222 Rent 91,500 - 91,500 91,500 Permit & license 30,081 61,166 91,247 5,934 Bank Charges 670 19,261 19,931 12,480 Advertisement 138,236 - 138,236 30,501 Education and Sensitization 980,006 - 980,006 309,833 Communication Expenses 54,993 23,570 78,563 36,065 Cost overrun on parent project - 12,710 Electricity 19,453 - 19,453 10,340 Audit fees 48,709 - 48,709 13,628 Exchange Loss/(Gain) 36,942 (4,389) 32,553 (787) Total non-capital expenditure 12,139,498 2,182,244 14,321,742 4,522,571 Total Project Expenditure 34,895,609 6,889,225 41,784,834 18,604,728 7 Cash and Cash equivalents GAMA Project Cash Wallet 42,458 - 42,458 906 IDA Designated Account 2,464,233 - 2,464,233 2,627,181 IDA Imprest Account 369,104 - 369,104 87,992 MSWR-GAMA AF Cedi Account 2,310,069 - 2,310,069 478,515 MSWR-GAMA Dollar Account - - - 314,539 NIB Designated Account 4,526,272 4,526,272 2,972,620 NIB Dollar Account - 33 33 33 NIB Cedi Account - 22,967 22,967 30,089 5,185,864 4,549,272 9,735,136 6,511,875 15 GREATER ACCRA METROPOLITAN AREA SANITATION AND WATER PROJECT - AF IDA CREDIT NO. 67810 - GH FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER, 2022 NOTES TO THE FINANCIAL STATEMENTS (continued) PCU GWCL TOTAL TOTAL IDA IDA 2022 2021 8 Accounts Payable US$ US$ US$ US$ Amansia Company Ltd 1,617 - 1,617 - Benning, Anang & Partners 20,636 - 20,636 - Bronz & Powers Ghana Ltd 16,043 - 16,043 - Civil & Environmental Engineering Services -4,714 - 4,714 - Sanshie E. Bonsu Co. Ltd 8,655 - 8,655 - Scaffold Construction Works Ltd 1,821 - 1,821 - Supersteps Group Ltd 4,380 - 4,380 - Training Research & Networking for Dev't 1,807 - 1,807 - Wilhemina Addo Anyane 1,020 1,020 - 60,693 - 60,693 - 9 Finaned by IDA 39,000,000 11,220,223 50,220,223 24,700,000 39,000,000 11,220,223 50,220,223 24,700,000 IDA Balance at 1st January 18,700,000 6,000,000 24,700,000 Additions during the period 20,300,000 5,220,223 25,520,223 24,700,000 Balance at 31st December 39,000,000 11,220,223 50,220,223 24,700,000 Other income Balance at 1st January 329,702 86,901 416,603 13,287 Additions during the period 691,078 131,373 822,451 403,316 Balance at 31st December 1,020,780 218,274 1,239,054 416,603 16 GREATER ACCRA METROPOLITAN AREA SANITATION AND WATER PROJECT-AF IDA CREDIT NO. 67810-GH MANAGEMENT LETTER 31ST DECEMBER, 2022 tam BENNING, ANANG & PARTNERS (Chartered Accountants and Management Consultants) Abavana House, Abavana Junction 56 Kotobabi Road P. O. Box AN 12266 Accra-North Ghana