OhC+I*Y 42%At & ht,AY?T 6T41Ab ?ft"4 rcauD& MAIM4 hctZt7i1 The Federal Democratic Republic of Ethiopia Audit Services Corporation INDEPENDENT AUDITOR'S REPORT ON THE FINANCIAL STATEMENTS OF MINISTRY OF HEALTH OF THE GOVERNMENT OF THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA AFRICA CDC REGIONAL INVESTMENT IDA CREDIT NUMBER 6504-ET AND IDA GRANT NUMBER D525 We have audited the financial statements of Ministry of Health of the Government of the Federal Democratic Republic of Ethiopia, Africa CDC Regional Investment project, financed under IDA Credit No. 6504-ET and IDA Grant No.D525, which comprise the balance sheet as at 7 July 2022, and the statement of sources and uses of funds and a Desi gnated Account statement for the year then ended, and a summary of significant accounting policies and other explanatory information. Management's Responsibility for the Financial Statements The Ministry of Health is responsible for the preparation and fair presentation of these financial statements in accordance with the Ethiopian Government's Manual of the Federal Accounting System 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 statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on A4diting. 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 fraud or error. In making those risk assessments,.the auditor considers internal control relevant to the entity's preparation and fair pres entation of the financial statements in order to design audit procedures that are appiopriate 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 appropriatene of accounting policies used and the reasonableness of accounting estimates made by mana ement, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropri te to provide a basis for our audit opinion 2 251-011-5515222 Fax 251-011-5513083 E-mail: ASC@ethionet.dom I 5720 251-011-5535012 251-011-5535015 251-011-5535016 A s- INDEPENDENT AUDITOR'S REPORT ON THE FINANCIAL STATEMENTS OF MINISTRY OF HEALTH OF THE GOVERNMENT OF THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA AFRICA CDC REGIONAL INVESTMENT IDA CREDIT NUMBER 6504-ET AND IDA GRANT NUMBER D525 (cont nued) Opinion In our opinion, the financial statements give a true and fair view of the fmanci 1 position of Ministry of Health of the Government of the Federal Democratic Republic of Ethiopia, Africa CDC Regional Investment project, financed under IDA Credit No.-6505 ET and IDA Grant No.-D525, 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 cond tions of the relevant financing agreement, with due attention to economy and efficie cy, and only for the purposes for which the financing was provided; - goods, works and non-consulting services financed have been procured i 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 provjsions of the relevant financing agreement and funds disbursed out of the Designated 4ccount were used only for the purposes intended in the financing agreement; - National laws and regulations have been complied with and that the mancial and accounting procedures approved for the Project; - financial performance of the Project is satisfactory; - the funds disbursed covered expenditures that are eligible for financing under IDA Credit No 6505-ET and IDA Grant No. D525-; 2 INDEPENDENT AUDITOR'S REPORT ON THE FINANCIAL STATEMENTS OF MINISTRY OF HEALTH OF THE GOVERNMENT OF THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA AFRICA CDC REGIONAL INVESTMENT IDA CREDIT NUMBER 6504-ET AND IDA GRANT NUMBER D525 (co1tinued) - assets procured from Project funds exist and there is a verifiable ownership by the implementing agency or beneficiaries in line with the financing agreemdnt; - with respect to Interim Financial Report submitted during the year end d 7 July 2022 and listed on page 9, in our opinion: a) the statements, together with the procedures and internal contr Is involved in their preparation, can be relied upon to support the relevant withdrawals; b) adequate supporting documentation has been maintained to su port claims to the IDA for reimbursements of expenditures incurred; and c) which expenditures are eligible for financing under IDA Credi No. 6504-ET and IDA Grant No. D525. 21 December 2022 3 INDEPENDENT AUDITOR'S REPORT ON THE FINANCIAL STATEMENTS OF MINISTRY OF HEALTH OF THE GOVERNMENT OF THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA AFRICA CDC REGIONAL INVESTMENT IDA CREDIT NUMBER 6504-ET AND IDA GRANT NUMBER D525 STATEMENT OF SOURCES AND USES OF FUNDS FOR THE YEAR ENDED 7 JULY 2022 Cumulative From 1 October 2020 to 7 July 2022 2021 Ethiopian Ethiopian Ethiopian Note Birr Birr Birr FINANCING Credits and grant from IDA Initial deposit to Designated Account 854,061,203 1,324,423,441 470,362,238 Gain on foreign exchange 87,266573 109,393,04 22,126,472 TOTAL FINANCING 941.327776 1,433,816 48 492.488,710 PROJECT EXPENDITURE Works and goods 566,510 764,635 198,125 Training 75,612,000 84,809,292 9,197,292 Operating costs 7 53,73097 60,016.5 3 6,285476 TOTAL PROJECT EXPENDITURE 129,909,607 145.590,500 15,680,893 EXCESS OF FINANCING OVER EXPENDITURE 41,288225,9 .817 4 INDEPENDENT AUDITOR'S REPORT ON THE FINANCIAL STATEMENTS OF MINISTRY OF HEALTH OF THE GOVERNMENT OF THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA AFRICA CDC REGIONAL INVESTMENT IDA CREDIT NUMBER 6504-ET AND IDA GRANT NUMBER D525 BALANCE SHEET AS AT 7 JULY 2022 2021 Notes Ethiopian Ethiopian Birr Birr ASSETS Cash and bank balances 3 740,433,542 430,955,092 Debtors 4 550767195 46,001,394 1,291,200,737 476,956,486 CURRENT LIABILITIES Accounts payable 5 2974,751 148,669 NET CURRENT ASSETS 1,288,225,986 476,80781 REPRESENTED BY ACCUMULATED FUND 6 1.288.226.986 476.80.81 5 INDEPENDENT AUDITOR'S REPORT ON THE FINANCIAL STATEMENTS OF MINISTRY OF HEALTH OF THE GOVERNMENT OF THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA AFRICA CDC REGIONAL INVESTMENT IDA CREDIT NUMBER 6504-ET AND IDA GRANT NUMBER D525 DESIGNATED ACCOUNT STATEMENT For the period ended 7 July 2022 Account number 0100081300151 Depository bank National Bank of Ethiopia Address Addis Ababa, Ethiopia Currency USD Equi alent USD in Ethio ian Birr Balance at 7 July 2021 9,813,174.45 430,1 2,839.12 Add: Replenishment during the year 16,379,616.82 834.8 3,088.74 26,192 791.27 1 264.9)5.927.86 Less payments Transfer to EPHI 8,444,257.87 433,137,44918 Transfer to Regions and Ministry of defence 255,166.03 12,419,722.88 Advance to contractors 2,720,098.03 139,098,243.16 Procurement of computers 10,180.66 519,711.35 Training and per diem 45,115.29 2,234,797.75 Salary and related expense 215,917.54 10,574,065.67 Tax expense 269,388.77 13,759,399.12 Operating expenditure 2,27212 115,935.83 11,962.396.31 611,8159,324.94 653,136,602.92 Add: Gain on foreign exchange 87.266,573.05 Ending balance 7 July 2022 14,230,394.96 40403,175.9 6 INDEPENDENT AUDITOR'S REPORT ON THE FINANCIAL STATEMENTS OF MINISTRY OF HEALTH OF THE GOVERNMENT OF THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA AFRICA CDC REGIONAL INVESTMENT IDA CREDIT NUMBER 6504-ET AND IDA GRANT NUMBER D525 NOTES TO THE FINANCIAL STATEMENTS 1. PROJECT INFORMATION The proposed project will support vital institutional capacity-building efforts by the Africa CDC headquarters in Addis Ababa, the Southern Afrca Regional Collaborating Center in Lusaka, and the Ethiopian and Zambian healt authorities. The activities supported by ACDCP are organized under five strategic components: (i) Governance and the Legal Framework; (ii) Public Health Assets;! (iii) Human- Resources Development; (iv) Project Management Support; and (v) a Contingent Emergency Response Component (CERC) ior Ethiopia and Zambia. In each area, complementary activities by the three implementing bodies-the Africa CDC Secretariat and the Ethiopia and Zambia governments will establish th physical and organizational infrastructure necessary for the Africa CDC to execute its core functions and lay the groundwork for its continued expansion into a continental health institution. The project components are designed in such a way to leverage network effects and exploit economies of scale to enhance the efficiency of scarce public health resources, overcome national-level capacity constraints, and maximize the positive spill overs produced by integrated transnational disease surveillance and emergency-response system. The project's cost is US$150 million obt ined from the World Bank with 15 months implementation period. According to the agreement between the IDA and the MoH, the progra. will conduct an external audit to ensure that there have been properly mainttined records, adequate, effective, and accurate records in compliance with establi;hed concepts, principles, and accounting period of the project is as per the Ethiopi4n Government budget year from July 8 to 7 of each year. 2. SIGNIFICANT ACCOUNTING POLICIES I a) Basis of preparation These financial statements have been prepared in accordance with the Ethiopian Government's Manual of the Federal Accounting System whicl is based on a modified cash basis of accounting. 7 INDEPENDENT AUDITOR'S REPORT ON THE FINANCIAL STATEMENTS OF MINISTRY OF HEALTH OF THE GOVERNMENT OF THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA AFRICA CDC REGIONAL INVESTMENT IDA CREDIT NUMBER 6504-ET AND IDA GRANT NUMBER D525 NOTES TO THE FINANCIAL STATEMENTS b) Currency These financial statements are presented in Ethiopian Birr. Transactions in foreign currencies are translated into Birr at the approximate rat4s of exchange prevailing at the dates of the transactions. Cash balances donominated in foreign currencies are translated into Birr at the exchange rate ruling at the balance sheet date. 3. CASH AND BANK BALANCES 2021 Ethiopian Ethiopi in Birr Birr National Bank of Ethiopia USD Designated Account No.0100081300151 740,403,176 430,142 839 Birr account 4. DEBTORS Advances to EPHI 377,519,113 46,00 ,394 Suppliers 19,208,114 - Regions 4,890,511 Contractors 148,802,771 Other advance 115,936 Staff receivable 230,750 - 5586,9 INDEPENDENT AUDITOR'S REPORT ON THE FINANCIAL STATEMENTS OF MINISTRY OF HEALTH OF THE GOVERNMENT OF THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA AFRICA CDC REGIONAL INVESTMENT IDA CREDIT NUMBER 6504-ET AND IDA GRANT NUMBER D525 NOTES TO THE FINANCIAL STATEMENTS 1. ACCOUNTS PAYABLE Ethiopian Birr Income tax 407,482 105,6 2 Pension payable 509,721 42,6 2 Withholding tax payable 1,147 3 5 VAT 3,046 L Other payable 2Q053i355 -. 2.974,751 1469 2. ACCUMULATED FUND Ethiopian Birr Balance at 7 July 2021 476,807,817 Add: excess of financing over expenditure 811,418,169 Balance at 7 July 2022 9 INDEPENDENT AUDITOR'S REPORT ON THE FINANCIAL STATEMENTS OF MINISTRY OF HEALTH OF THE GOVERNMENT OF THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA AFRICA CDC REGIONAL INVESTMENT IDA CREDIT NUMBER 6504-ET AND IDA GRANT NUMBER D525 NOTES TO THE FINANCIAL STATEMENTS 7. OPERATING COST 20 1 Ethiopian Ethiopian Birr Bi r Salary expense 24,121,651 2, 13,841 Pension contribution 2,562,788 76,743 Travel and per diem 22,309,909 3,361,980 Fuel and lubricant 753,961 23,473 Rent expense 2,700,000 3,837 Bank charge 2,065 5,603 Printing and stationery 113,438 - Repair and maintenance 8,550 - Consultancy 709,896 - Entertainment 28,620 - Advertising 135,383 - Telephone and fax 283,636 - Miscellaneous expense 1.200 8. DATE OF AUTHORIZATION The Finance and Procurement Directorate Director of the Ministry authorized the issue of these financial statements on 21 December 2022. 10 INDEPENDENT AUDITOR'S REPORT ON THE FINANCIAL STATEMENTS OF MINISTRY OF HEALTH OF THE GOVERNMENT OF THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA AFRICA CDC REGIONAL INVESTMENT IDA CREDIT NUMBER 6504-ET AND IDA GRANT NUMBER D525 INTERIM FINANCIAL REPORT SUBMITTED DURING THE YEAR ENDED 7 JULY 2022 Expenditure Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total Birr component Birr Birr Birr Birr No 2 7,951,015.67 11,656,503.47 20,911,840.31 611153J197.5 101,672,557.10 3 463,980.00 853,590.00 627,787.21 2,570,143.:0 4,515,501.01 4 3,249.613.46 8,637,516.13 4,440.702.80 7393 7163 23,721,548.42 Total 11,64M.13S 21,147,609-60 25,980 11 MINISTRY OF HEALTH OF THE GOVERNMENT OF THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA AFRICA CDC REGIONAL INVESTMENT IDA CREDIT NUMBER 6504-ET AND IDA GRANT NUMBER D525 LIST OF FIXED ASSETS 7 JULY 2022 Description of Item Qty Cost Amount Location Expert chairs 60 198,124.80 EPHI Lap top 7 72,500 MOH Hard disk 7 59,031 MOH 12