�.� _ � ь, � � °�" г � _. п"� � F г'91 ,i` 1г.��i "1� �i..��'� �.��-k.1 гi ..�� х�� У rч�2 �: ,�. �.. j - 7 1� . '� А ._W •1'чд$ j��� � ' II �1 1 1 fi .. С . . .. .-.. -._ .... . ... ....... � �,�ег' �Ё � � '�Н �.ч'�- г�� Е�.)�tг? .l :�Ь��.� ���1���^�s�,�, у � -`� ?��`,f� Е.�г t �j�'�' __ ;`',� ;, s: ;1 � ,.1 Э ` :,� J 1'�' i 1�: � , А /!�: A.ss INDEPENDE NT AUDITOR'S REPORTTOTHE MINISTRY OF HEALTH OF THE GOVERNMD'NT 07 THE FEDERAL DEMOCRATIC REPUBLIC 61 'i,"Ti-ilOPIA .COVID-19 EMERGENCY RESPONSE IDA CREDIT NUMBER 6587-IW,IDA GRANT NUMBERS D59,14W AND D791-ET We have audited the financial statements of Ministry of Health of the Government of the Federal Democratic Republic of Ethiopia, COVID-19 emergency response project, financed under IDA Credit No. 6597-IW,IDA Grant Nos.D594-IW and D791-FT, which comprise the balance sheet as at 7 July 2022, and the statement of sources and uses of funds and a Designated Account statements for the year then ended, and a summary of significant accounting policies and other explanatory information, Management's Responsihilityfor Me Financial Statements The Ministry of Health is responsible for the preparation and fair presentation of these financial staternents in accordance with tile Ethiopian Government's Manual of the Federal Accounting Systern which is based on a modified cash basis of accounting and for such internal control as the Ministry determines is necessary to enable the preparation of financial staternents that are free from material misstatement, whether due to fraud or error. A tidifor's Responsibility Our responsibility is to express an opinion on these financial staternents based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements, The Procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fi-aud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the Financial statements 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 entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. t--, 251-Oli-55i5222 Fax 251-011-5513083 E-mail:asc@ascethiopia.com 5720 251-011-5535012 website WMN.ascethiopia.com 251-011-5535015 251-011-5535016 INDEPENIDEN'T AUVDIT'OR'S 1 REPORT TO> THE ~TE rtQ LEDERAL.DEMOCRATIC ¾f'UtUI C O .THiq IACEf NUMBE 69A W , .A GRA T NUBRK AND li 790PC I (continuied) We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion in our opinion, the financial statements give a true and fair view of the financial position of Ministry of Health of the Government of the Federal Democratic Republic of Ethiopia, COVID-19 emergency response project, financed under IDA Credit No.-6587-IW, IDA Grant Nos.-D594-IW and D594-IW, as at 7 July 2022 and of its sources and uses of funds for the year then ended, in accordance with the Ethiopian Government's Manual of the Federal Accounting System which is based on modified cash basis of accounting. Report on Other Requirements As required by the terms of reference for external audit of the Project, we report that, to the extent we can assess: - all World Bank Financing has been used in accordance with the conditions of the relevant financing agreement, with due attention to economy and efficiency, and only for the purposes for which the financing was provided; - goods, works and non-consulting services financed have been procured in accordance with the relevant financing agreement including specific provisions of the World Bank Procurement Policies and Procedures; - all necessary supporting documents, records and accounts have been maintained in respect of all Project activities; - Designated Account has been maintained in accordance with the provisions of the relevant financing agreement and funds disbursed out of the Designated Account were used only for the purposes intended in the financing agreement; - National laws and regulations have been complied with and that the financial and accounting procedures approved for the Project; AS'Cu 2 IA CREID IT NUMiABER 6587'!4W, IDA/ GRANT NUMBER P iLS 1/91 7 ANIDi 1D791 ET (continued) financial performance of the Project is satisfactory; the funds disbursed covered expenditures that are eligible for financing under IDA Credit No6587-IW, IDA Grant Nos. D594-IW and D791-ET; - assets procured from Project funds exist and there is a verifiable ownership by the implementing agency or beneficiaries in line with the financing agreement; - vaccines procured by project resources are properly managed, distributed, and reported; with respect to Interim Financial Report submitted during the year ended 7 July 2022 and listed on page 14, in our opinion: a) the statements, together with the procedures and internal controls involved in their preparation, can be relied upon to support the relevant withdrawals; b) adequate supporting documentation has been maintained to support claims to the IDA for reimbursements of expenditures incurred; and c) which expenditures are eligible for financing under IDA Credit No. 6587-IW, IDA Grant Nos. D594-IW and D791-ET 2 February 2023 3 From 15 Decemnber- 2019 to 7 July 2021 2021 Ethiopian Ethiopian Ethiopian Note Birr Birr Birr FINANCING Credits and grant from IDA Initial deposit to Designated Account 2,560,679,131 992,139,019 Direct payment to suppliers 3,197,261,735 3,569,054,240 345,906,210 IDA remittance 40,155,762 816,217,423 776,061,661 Gain on foreign exchange 227,997,069 328,690,595 84,127,55 TOTAL FINANCING _4544,6 7 6 2,1 9823 444 PROJECT EXPENDITURE Works and goods 1,228,607,568 2,223,510,186 992,940,293 Consultants' services 235,383 14,487,153 18,936 Non- consultants' services - 5,113,987 - Training 334,633,800 772,961,388 424,969,277 Operating costs 7 427,935,603 711,762,087 274,869,879 TOTAL PROJECT 1.991,412l3],727)834,801 1692,798.,385 EXPENDITURE EXCESS OF FINANCING OVER EXPENDITURE 1474,002,212 5054436,059 4 MvIN>ISTRY4 OFDb HEATUT OF THE V ERNA 'PMENT' OFI ANDTl D79 IETI AS AT 7, JULY 2022 2021 Ethiopian Ethiopian Note Birr Birr ASSETS Cash and bank balances 3 39,628,207 1,971,082,045 Debtors 4 4,013.851A36 250,364,827 4,053,480,043 2,221,446,872 CURRENT LIABILITIES Accounts payable 5 506,673,455 148642,496 NET CURRENT ASSETS 3,546,80 2.22,804.376 REPRESENTED BY ACCUMULATED FUND 6 3,546.806588 Z02,804,376 5 INDNDE DENPJYTii AUDIE 'SF REPORT TO iT IE MINISTRY OF M HEAI TH O fF C OVERNMEN T OF DA CRDINME.6, W D GATNlRR D}ESIG'NA.TD ACC~ OUN SiTATEfMENT For year ended 7 July 2022 Account number 0100081300152 Depository bank National Bank of Ethiopia Address Addis Ababa, Ethiopia IDA Grant D544-iw and Related Grant and Credit Credit No. 6587-IW Currency USD Equivalent USD in Ethiopian Birr Balance at 8 July 2021 22,246,961.05 975,155,464.30 Add: inter account transfer 4,964,887.46 354.924.070.01 27,211,848.51 1,330,079,53431 Less: Transfers to Regions 26,671,252.42 1,375,148,183.02 540,596.09 (45,068,648.71) Add: Gain on foreign exchange - 73,195,701.61 Ending balance 7 July 2022 5AQ,5.9I2,7,052.9D 6 MINIS T8'RY O)F HEALTHnCI OF THE01111 GOVENMET OF For year ended 7 July 2022 Acount numiiiiber- 0100081300154 Depository bank National Bank of Ethiopia Address Addis Ababa, Ethiopia Related Grant IDA Grant No. D791-ET Currency USD Equivalent USD in Ethtiopian Birr Initial deposit 22,720,827.62 995,926,581.23 Less: transfer to Regions 22,658,914,93 1,145,942,752.61 61,912,69 (150,016,171.38) Add: Gain on foreign exchange - 153,237,470.07 Ending balance 7 July 2022 f1L91212 3.221.2986 7 MVHNSTRY OF' HEALTH4 O~ F E GOERNMENTf OF A CRRA GANNUM NOTIE TO; THE1' FNANCIAL WiST 'ATECMEN 1TS L PROJECT INFORMVlATION '[he Government of the Federal Democratic Republic of Ethiopia (the Recipient) and the International Development Association (IDA) entered into an agreement on 3 April 2020 to finance a Project titled "Ethiopia COVID-19 Emergency Response Project". Under the agreement, IDA agreed to extend to the Recipient credit in an amount equivalent to SDR 30,300,000 and grant in an amount equivalent to SDR 30,300,000 The project has obtained a first additional financing of USD 207,000,000 to mainly finance vaccine related activities. Additional financing was singed on 23 April 2021. The Project Development Objective of the COVID-19 Emergency Response Project is to prevent, detect and respond to the threat posed by COVID-19 and strengthen national systems for public health preparedness in Ethiopia. The project is overall managed by the Ministry of Health (MoH). The specific objectives of the project, aligned with Ethiopia's Emergency Preparedness and Response Plan (EPRP), are to: (a) strengthen coordination of preparedness and response operations at national and sub national levels; (b) reinforce screening procedures at the points of entry; (c) strengthen surveillance capacity for early detection of cases, alert/rumor management and follow up of contacts; (d) strengthen laboratory capacity for the diagnosis of COVID-1 9; (e) increase the capacity to rapidly isolate and provide optimized care for persons suspected or confirmed to have COVID-19; (f) implement optimal infection and control measures in healthcare settings and communities; (g) increase awareness and informed decision-making among communities through risk communication and community engagement; and (h) provide and pre-position medical supplies and commodities, and other logistics for COVID-19 management. The Parent project's cost is USD 82.6 million. It will be implemented through five components: (i) Component I- Medical Supplies and Equipment: this component will finance the procurement of medical supplies and equipment needed for activities outlined in the EPRP; (ii) Component 2 - Investing Preparedness, Capacity Building and Training: this component will finance activities related to preparedness, capacity building and training, guided by the different pillars and activities of the EPRP; (iii) Component 3- Community Discussions and Information Outreach;(iv) Component 4 - Quarantine, Isolation and Treatment Centers Establishment; activities supported by this component include: establishing isolation and treatment centers, including provision of nutrition and dignity kits to quarantined patients, and equipping them with medical supplies and furniture and network installation; and (v) Component 5 - Project Implementation and Monitoring: Implementing the proposed Project will require administrative and human resources that exceed the current capacity of the implementing institutions 8 TeIpjeNDas Abtid rEt A Fai (A)POR oT THEn MINitISTRY OF HEA IR OFH GOVERNMEN OF t0 ..DA CRE, ii' f NUMEKI II 658iW / DA GRN H UMBERS> AIND Wt/91 ET NOTESI TO TR IN fANCIA S0 TA1TEMENTSI The project has obtained a first Additional Financing (/AF) of USD) 207! ii Ion to mainly finance vaccine related activities. The five Components under the Parent project remain unchanged, but the additional activities of the AF are included under it. These are Component I - Medical Supplies and Equipment - (i) Project COVID-19 Vaccine in quantities sufficient to vaccinate at least 4% of the Recipient's population; (ii) vaccination supplies needed for activities outlined in the Vaccine Delivery and Distribution Manual including diluents, syringes, and medical supplies associated with the vaccination response; (iii) climate-friendly cold chain inputs, including LED lamps and refrigerators, (iv) maintenance of existing cold chain equipment; (vii) infection prevention and waste management; and (v) Project COVID- 19 Vaccine storage and transportation; Component 2 - Preparedness, Capacity Building and Training - (i) Operating costs; (ii) the development of a COVID-19 vaccination card, COVID registry, report and analytical tools; training plan for vaccine introduction; (iii) deployment of health professionals and training on surveillance, supply chain, and emergency preparedness for climate hazards; (iv) development of micro-level Project COVID-19 Vaccine deployment plans at national and sub national levels ; (v) establishment of regulatory measures for the procurement/ importation of Project COVID-19 Vaccine and related supplies; vaccine safety, licensure pharmacovigilance; (vi) Project COVID-19 Vaccine inoculation training for front line health personnel; (vii) supervision on Project COVID-19 Vaccine safety and Adverse Event Following Immunization (AEFI) monitoring for regulators and EPI officers; (viii) strengthening of regional AEFI investigation task force and support for AEFI case investigations; (ix) preparation of data protection guidelines (including Personal Data), draft consent forms, developing standard operation protocols (SOP); (x) developing innovative registries for key Project COVID-19 Vaccine target groups, identification of target populations; monitoring and evaluation including establishment of a mechanism to track adverse reactions to Project COVID-19 Vaccines. Catering and refreshment costs will be financed out of the Operating Costs; Component 3 - Community Discussions and Information Outreach - (i) human resource capacity for risk communication, (ii) the development of social mobilization and community engagement strategies (using local languages) to increase Project COVID-19 Vaccine acceptance and COVID- 19 prevention behaviors; (iii) monitor Project COVID-19 Vaccine acceptance/hesitancy; (iv) establish compliant handling mechanisms at all levels (Federal MOH, Regional Health Bureau, Woreda Health Office and Facility); and (v) deployment of risk communication officers and other human resources to expand and accelerate Project COVID-19 Vaccine deployment efforts; Component 4 - Quarantine, Isolation and Treatment Centers and regulatory infrastructure - Establishment of the regulatory infrastructure and capacity for safety surveillance of the Project COVID-19 Vaccine, including refurbishing and equipping a Project COVID-19 Vaccine laboratory under Ethiopia Food and Drug Authority; Component 5 - Project Implementation and Monitoring - the creation of accountability, grievances, and citizen and community engagement mechanisms. 9 21V{ SICi'IPICANT t CCOUP Tn M~UING S3~ (Niinl a) Basis of preparation These financial statements have been prepared in accordance with the Ethiopian Government's Manual of the Federal Accounting Systemn which is based on a modified cash basis of accounting, b) Currency These financial statemnents are presented in Ethiopian Birr. Transactions in foreign CUrrencies are translated into Birr at the approximate rates of exchange prevailing at the dates of the transactions. Cash balances denominated in foreign CUrrencies are translated into Birr at the exchange rates ruling at the balance sheet date. 3. CASH AND BANK BALANCES 2021 Ethiopian Birr Ethiopian Birr National Bank of Ethiopia USD Designated ACCOUnt No.0 100081300152 28,127,053 975,155,464 No.0100081300154 3,221,299 995,926,581 Birr account 22,499 - Commercial bank of Ethiopia 8,257,356 o 10 INDE)iPENTDRNT AUiDIOR'S RPORTD TO iTHE AND D7/9 1%E NYOTES'TO) TH lDFliNAtNCI AL STATEMENTIF~WIS 4. ~I j3IIOL 2021 Ethiopian Birr Ethiopian Birr Advances to Suppliers 3,187,871,793 80,691,630 Regions 275,485,554 85,894,837 PFSA - 40,934,752 Contractors 51,659,576 42,843,608 Inter project account 496,367,308 Staff receivable 2,467,605 4,0 1 fi&2U-636 5. CREDITORS Retention payable 2,525,931 Value added tax 7,876,575 2,810,728 Withholding taxes (380,477) 4,595 Payable to general fund 153,022,781 45,827,174 Payable to SDG 343,628,645 99,999,999 6. ACCUMULATED FUND Ethiopian Birr Balance at 7 July 2021 2,072,804,376 Add: excess of financing over expenditure 1,474,002,212 Balance at 7 July 2022 3,546,8 11 iII NO'a 13 'G '134. FNACIAL,13TA'J,`tFI64'K 7I OPERATING COST 2021 Ethiopian Ethiopian Birr Birr Salaries and related benefits 4,593,299 106,342,348 Printing 1,147,969 5,758,283 Supplies 3,518,704 4,734,743 Fuel and lubricants 27,479,974 12,617,890 Travel and per diem 376,749,659 76,210,564 Food 52,949 4,310,212 Repair and maintenance 1,444,398 4,901,127 Rent 4,867,699 34,198,315 Advertising 7,082,993 2,623,438 Insurance - 1,232,781 Freight 339,981 1,419,855 Fees and charges 355,204 536,896 Telephone expense 302,774 19,957,718 Miscellaneous - 2527(9 4274,862A79- 8. DATE OF AUTHORIZATION The Finance and Procurement Directorate Director of the Ministry authorized the issue of these financial statements on 2 February 2023. 12 INDEIEINEN A AUOfOR'S REPOT ON T THE FEDRA DEMCRATYI REPUBL22LOF ETH IA COVL[D 19 EM~EGENCY ES3PONSEi IDA CJREff NUMBIER 6587-I lW, IDA GRANT~ lJVE i NUMB ERS 94W AND D7/91-ET INTERIM FINA.NCItAL REPORT SiUI]TTED DRNG THE YEAR 7 JULY 2022 Expenditure Quarter I Quarter 2 Quarter 3 Quarter 4 Total Birr coinponent Birr Birr Birr Birr No 1 126,375,590 797,499,383 262,346,089 1,186,221,062 2 48,098,206 61,517,184 380,579,974 81,342,194 571,537,558 3 9,846,183 6,664,720 24,346,859 102,972,536 143,830,298 4 12,494,965 10,299,883 22,019,584 28,310,726 73,125,158 5 4,031,973 2,717,359 1,667,072 8,281,874 16,698,278 Total 74,47L327 207,574,736 1.226,112.872 483,253,4 1,991,412,354 13 IS Description of Ite Q Cost Amount Coffee table 2 27,000 TV stand 2 81,000 Coffee table 1 24,300 Sofa 3 593,400 Photo copy machine I 157,362 Scanner 120 983,388 Office table 61 210,099 TV stand 2 90,850 Photo copy machine 2 314,725 Printer 3 44,526 Refrigerator 5 154,896 Chemical storage cabinet I 15,214 Canvas stool with back 19 113,922 Wheel baron (trolly) 2 13,796 Bench table 1 58,589 ShelIf 2 40,476 Chemical storage cabinet 3 16,919 Shelf 5 73,611 Chemical storage cabinet 3 59,158 Bench table 4 206,507 Chemical storage cabinet 4 22,559 Bench table 2 126,550 Chemical storajge cabinet 15 113,318 Chemical storage cabinet 2 11,279 Bench table 2 140,154 Bench table3 154,880 14 I A HIDTJUIFD 6MV a" , IDA GRANT NUMBE~RS DSI94 IW AND'JiY/9lET LIST OF Fl SSETS Chemical storage cabinet to 65,971 Beneh table 4 227,999 Chemical storage cabinet 6 61,998 Bench tabte 3 260,837 Aluminurn shelf 2 175,204 X-Ray -Radiography 29 104,727,916 X-Ray -Radiography l 3,622,186 15