Promoting Accountablty of Public Resources AUDITOR GENERAL'S REPORT ON THE FINANCIAL STATEMENT AUDIT OF THE LIBERIA LAND ADMINISTRATION PROJECT (LLAP) GRANT NO. IDA D2370 For the Period Ended December 31, 2022 JUNE 2023 P. Garswa Jackson, Sr., ACCA, CFIP, CFC Auditor General, R. L Auditor Generafs Report on the Financial StatementAudit of the Liberia LandAdministration Project (LAP) For the Fscal Period Ended December 31, 2022 Table of Contents O pin io n .........................................................................................................................3 Basis for Opinion............................................................................................................3 Management's Responsibility...........................................................................................3 Auditor's Responsibility ...................................................................................................4 STATEMENT OF FUND BALANCE AND CASH STATUS.........................................................6 STATEMENT OF COMPARISON OF BUDGET AND ACTUAL AMOUNTS..................................7 STATEMENT OF FINANCIAL POSITION.............................................................................8 NOTES TO FINANCIAL STATEMENTS ...............................................................................9 2 Promoting Accountability of Public Resources Auditor Generals Report on the FnancialStatement Audit of the Liberia LandAdministration Project (LLAP) For the Fiscal Period Ended December 31, 2022 June 30, 2023 Atty. . Adams Manobah, Sr. Chairman Liberia Land Authority (LLA) Mamba Point Monrovia, Liberia Dear Atty. Manobah AUDITOR GENERAL'S REPORT ON THE FINANCIAL STATEMENT AUDIT OF LIBERIA LAND ADMINISTRATION PROJECT (LLAP) FOR THE FISCAL PERIOD ENDED DECEMBER 31, 2022. We have audited the financial statements (Grant No. IDA D2370) of the Liberia Land Administration Project (LLAP), which comprise the statement of Cash Receipts and Payments for the period ended 31 December 2022, the Statement of Comparison Budget and Actual Amounts and a summary of significant accounting policies and other explanatory information. Opinion In our opinion, the accompanying financial statements (Grant No. IDA D2370) present fairly, in all material respects, the Statement of Receipts and Payments as at December 31, 2022, Statement of Comparison of Budget and Actual Amounts and a summary of other accounting policies and explanatory notes for the fiscal period then ended in accordance with International Public Sector Accounting Standards (IPSAS) Cash Basis of Accounting. Basis for Opinion We conducted our audit in accordance with International Standards of Supreme Audit Institutions (ISSAIs). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements Section of our report. We are independent of the entity in accordance with the Code of Ethics for Supreme Audit Institutions together with the ethical requirements that are relevant to our audit of the financial statements in accordance with the World Bank guideline and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Management's Responsibility Management is responsible for the preparation and fair presentation of the financial statements in accordance with IPSAS Cash Basis, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is responsible for assessing its ability to continue as a going concern, disclosing, 3 Promoting Accountability of Public Resources Auditor General's Report on the Fnancial StatementAudit of the Liberia LandAdministration Project (LLAP) For the Fiscal Period Ended December 31, 2022 as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to cease operations, or has no realistic alternative but to do so. The LLAP Management is responsible for overseeing the Project's financial reporting process. Auditor's Responsibility 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 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 ISSAIs 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 these financial statements. P. arswa 3 so r., ACCA, CFIP, CFC Ad it , R. L. Monrovia, Liberia June 2023 4 Promoting Accountability of Public Resources Audtor Generafs Report on the Fnanci Statement Audit of the Liber LandAdministration Project (LLAP) For the Fscal Period Ended December 31, 2022 STATEMENT OF RECEIPTS AND PAYMENTS FOR THE PERIOD ENDED DECEMBER 31, 2022 SPECIAL BUDGET YEAR July 1, 2021- December December June In United States Dollars Notes 2022 31, 2021 2021 Cumulative Receipt IDA Grant 4 2,069,212 945,652 1,485,528 6,547,800 Total Receipt 2,069,212 945,652 1,485,528 6,547,800 Payment Support to the Liberia Land Authority 5 439,323 531,827 838,134 2,472,484 Support for Inventory & Analysis 6 610,501 - - 610,501 Development of a Land Adm. System 7 443,791 109,653 400,828 1,087,113 Project Coordination, M & E 8 363,601 395,220 438,903 2,057,473 Total Payments 1,857,216 1,036,700 1,677,865 6,227,571 Excess of receipts over payments (payments over receipts) 211,996 (91,048) (192,337) 19,660 Fund Balance as at beginning 108,233 199,281 391,617 - Cumulative fund balance 320,229 108,233 199,280 19,660 Let .F or Daniela Gray-Johnson Director of Project, LLAP PFMU, M DPLA [LA The notes on pages 8 to 12 are integral part of these project financial report. 5 Promoting Accountability of Public Resources Auditor Generals Report on the FinancialStatementAudt of the Liberia Land Adminstration Project (LLAP) For the Fiscal Period Ended December 31, 2022 STATEMENT OF FUND BALANCE AND CASH STATUS FOR THE PERIOD ENDED DECEMBER 31, 2022 SPECIAL BUDGET YEAR July 1, 2021 Note December - December June In United States Dollars s 2022 31, 2021 2021 A Fund Balance Balance of Project Fund 108,233 199,281 391,617 Add: Total Receipts during the period 2,069,212 945,652 1,485,528 Total Fund available for operations 2,177,445 1,144,933 1,877,145 Less: Total Payments during the period 1,857,216 1,036,700 1,677,864 Balance of project fund at the end of the year 320,229 108,233 199,281 B Cash Status: Cash at Bank 320,229 108,233 199,281 Total Cash on hand and in bank 320,229 108,233 199,281 Difference between A and B - 0 - The notes on pages 8 to 12 are integral part of these project financial report. 6 Promoting Accountability of Public Resources Auditor Generals Report on the Financial StatementAudit of the Libera Land Administration Project (LLAP) For the Fiscal Period Ended December 31, 2022 STATEMENT OF COMPARISON OF BUDGET AND ACTUAL AMOUNTS FOR THE FISCAL YEAR ENDED DECEMBER 31, 2022 Activities Within Components Project Annual Year to date Variance Expenditur Allocation Budget e Uses of Funds By Activity Within Components $ $ $ Support to the Liberia Land Authority 2,290,000 972,151 971,151 1,000.00 Support for Inventory & Analysis 1,120,000 1,249,620 610,501 639,119 Development of a Land Adm. System 1,570,000 1,509,790 553,444 956,346 Project Coordination, M & E 2,020,000 759,821 758,822 1,000 Grand Total 7,000,000 4,491,382 2,893,918 1,597,465 Variance Explanation This change is the result of the signing of a contract and initiation of field activities including scoping exercises in pilot communities, the development of a draft field manual for the systematic registration of customary land as well as a draft Stakeholder Engagement Strategy, and a draft Grievance Redress Mechanism document for the implementation of piloting of registration of customary land. This is as a result of the procurement and delivery of GNSS equipment to the LLA and the commencement of renovation works at three County Land Offices (CLOs) and also bad road, and M&E results did not meet the target. The notes on pages 8 to 12 are integral part of these project financial report. Promoting Accountability of Public Resources Auditor Generals Repolt on the Financial StatementAudit of the Liberia LandAdministration Project (LLAP) For the Fscal Period Ended December 31, 2022 STATEMENT OF FINANCIAL POSITION AS AT DECEMBER 31, 2022 SPECIAL BUDGET YEAR July 1, 2021 - December December June In United States Dollars Notes 2022 31, 2021 2021 Assets Cash and cash equivalent 320,229 108,233 199,281 Total Assets 320,229 108,233 199,281 Fund Balance Grants 320,229 108,233 199,281 Accumulated Fund Balance 320,229 108,233 199,281 The notes on pages 8 to 12 are integral part of these project financial report. 8 Promoting Accountability of Public Resources / Auditor Genera/'s Report on the Financial StatementAudit of the Liberia LandAdministration Project (LLAP) For the Fiscal Period Ended December 31, 2022 NOTES TO FINANCIAL STATEMENTS 6 L Background and Information of the Prtect With support from the International Development Association; the Liberia Land Administration Project (LI.Al)-prmject is to strengthen the institutional capacity of the Liberia L.and Authority and establish a Land Administration System. Tlhe World Bank approved the 1.AP project on October 27, 2017 with a grant amount of 'SD 7,0010,4000.( The Project consists of the following parts: Part I Support to the Liberia Land Authority Provision of support to operationalize the LiA in carrying out its core responsibilities including: a. drafting of policies, laws, regulations and administrative procedures pertaining to land; b. establishment of business systems, plans and processes and developing a strategic investment strategy for iLA's financial sustainabilitv; c. reviewing the findings of a 2013 training needs assessment for LLA staff and devising and implementing capacity building strategies based on said analysis; d. carrying out communication and awareness raising campaigns for the public and other stakeholders (including communities, vulnerable groups such as wormen, private surveyors, banks and microfinance institutions) to apprise them of the land law, land institutions, dispute resolution mechanisms and any other rapic as needed; e, acquisition of office equipment, furniture, supplies and vehicles to enable 1JA to discharge its responsibilities; and f carrying out minor renovation of LIA's offices Part 2: Support for inventory and analysis of Tribal Land Certificates rstablishing a central database and collecting, analyzing and in putting new and existing data on tribal land including Tribal Land Certificates in said database. Part 3: Development of a Land Administration System Provision of support to establish a Land Administration System including: a. supplying and installing the Geodetic Network and implementing activities for operation of said network; b. creating an inventory of existing maps and GIS data on the Recipicet's c. territorv; d. carrying out pilots and assessments for development of a long-term vision for the Recipient's work on land records, recording of land rights, valuation of land and land use planning; and c. developing a plan for decentralizing the IIA's services to the local level. Part 4: Project Coordination, Monitoring and Evaluation Strengthening the institutional capacity of the 11A for Project management and implementation support including: a. preparing Project reports; b. undertaking baseline studies, preparing social assessments and project evaluation studies; c. coordinating the various institutions participating in the Project; d. monitoring and evaluating Project progress and results; and c. the AMCL field supervision in connection with the Project all through provision of goods, works, technical advisory services, Training and Operating Costs. 2. Use of Grant Proceeds The table below sets out the categories of items to be financed out of the grant pmceeds, the allocation of the amounts of the grant to each category and the percentage of expenditures for items to be financed in each category: 9 Promoting Accountability of Public Resources Auditor Generalfs Report on the Fnancial StatementAudit of the Liberia LandAdministration Project (LLAP) For the Fscal Period Ended December 31, 2022 NOTES TO FINANCIAL STATEMENTS (cwinind) 7 Amount of grant allocated % of expressed in expenditure Category USS to be financed Support to the Liberia Land Authority 2,29),0Q) U Support for inventory and analysis of tribal land certificates 1,120,10 N) Devckipment of a land administration system 1,570,M0 UKM Project coordination, monitoring and evaluation 2,020,4) 100 Total 7,000,000 All categories of expenditure shown in these financial statements are fully financed based on the percentage below: % of Expenditure IDA grant In Total 100 3. Significant Accounting Policies Basis of accounting The financial statements have been prepared in accordance with the Cash Basis International Public Sector Accounting Standards (IPSAS) and in the manner required by the Project Grant Agreement as required by the World Bank's Operating Policies and Procedures and PFMU's Financial Mlanagement manual. This implies that all expenditures are expensed whether they are revenue or capital in nature and income is recognized when funds are received from the World Bank. Reporting currency Financial reports have been presented in United States Dollars. Transactions denominated in other currencies are translated into United States Dollars and recorded at the rate of exchange ruling at the date of transactions. Balances denominated in other currencies are translated into United States Dollars at the rate of exchange prevailing on the reporting date. 10 Promoting Accountability of Public Resources Auditor Generahs Report on the Finandal StatementAudit of the Liberia LandAdministration Project (LLAP) For the Fscal Period Ended December 31, 2022 NOTES TO THE FINANCIAL STATEMENTS (continued) SPECIAL BUDGET YEAR July 1, 2021 - December December 31, June In United States Dollars 2022 2021 2021 Cumulative 4 Grant IDA Grant A0929 2,069,212 945,652 1,485,528 6,547,328 Sale of Bid Document - - - 472 2,069,212 945,652 1,485,528 6,547,800 Support to the Liberia Land 5 Authority 439,323 531,827 838,134 2,472,484 6 Support for Inventory & Analysis 610,501 - - 610,501 Development of a Land Adm. 7 System 443,791 109,653 400,828 1,087,113 8 Project Coordination, M & E 363,601 395,220 438,903 2,057,473 1,857,216 1,036,700 1,677,865 6,227,571 Cash receipts through 9 grant and other Sources IDA grant 2,069,212 945,652 1,485,528 6,547,800 10 Cash paid Support to the Liberia Land Authority 439,323 531,827 838,134 2,472,484 Support for Inventory & Analysis 610,501 - - 610,501 Development of a Land Adm. System 443,791 109,653 400,828 1,087,113 Project Coordination, M 438,903 2,057,473 & E 363,601 395,220 Total Payments 1,857,216 1,036,700 1,677,865 6,227,571 11 Promoting Accountability of Public Resources Auditor General's Report on the Financal StatementAudit of the Liberia LandAdministration Project (LLAP) For the FIscal Period Ended December 31, 2022 NOTES TO THE FINANCIAL STATEMENTS (Continue) PROJECT DESIGNATED ACCOUNT STATEMENT Account Number: 00111002798901 Account Type: Current Account Depository Bank: GN Bank (Liberia) Limited Address: Luke Building, Broad Street Monrovia, Liberia Currency: United States Dollar SPECIAL In United BUDGET States Dollars YEAR July 1, 2021 - December December June 2022 31, 2021 2021 Total Grant Received 2,069,212 945,652 1,485,528 Total grant income reported 2,069,212 945,652 1,485,528 Amount spent 1,857,216 1,036,700 1,677,864 Balance as at beginning 108,233 199,281 391,617 Balance as at December 31, 2022 320,229 108,233 199,281 Closing Balance Consist of: GN Bank (00111002798901) 320,036 107,315 198,171 Cash on Hand-Petty Cash 193 918 1,110 320,229 108,233 199,281 12 Promoting Accountability of Public Resources f'N