I
I
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EASTERN NILE TECHNICAL REGIONAL OFFICE (ENTRO)
REPORTS AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
liokch & N1elkamm Audit Piirtntership
Chartered Certi Accouiltanlts (1,K)
Tel +251-1 --616-69-56,
Mobile Iel.25 1-91-120-37-78/5 1-61-46
Fax 251-1 1-552-26-88
e-mail: kokielk'a ethionet.et
P.0 Box 33645
GLOSSARY OF TERMS
AWF Africa Water Facility
AfDB African Development Bank
BAS Baro - Akobo - Sobat Project
CIWA Cooperation in International Waters in Africa
ENCOM Eastern Nile Council of Ministers
ENSAP Eastern Nile Subsidiary Action Program
ENTRO Eastern Nile Technical Regional Office
GIZ The Deutsche Gesellschaft f0r Internationale Zusammenarbeit GmbH
IDEN Integrated Development of Eastern Nile
N - CORE Nile Cooperation for Results Project
NBI Nile Basin Initiative
NBTF Nile Basin Trust Fund
NELSAP CU Nile Equatorial Lakes Subsidiary Action Program Coordination Unit
NEPAD - IPPF NEPAD - Infrastructure Project Preparation Facility
Nile SEC Nile Basin Secretariat
Kokeb & Melkamu Audit Partnership, Chartered Certified Accountants (UK)
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EASTERN NILE TECHNICAL REGIONAL OFFICE (ENTRO)
REPORTS AND FINANCIAL STATEMENTS
TABLE OF CONTENTS Pages
OFFICIAL AND PROFESSSIONAL ADVISOR 3
PART 1 ENTRO MANAGEMENT REPORT
1.1 Background 4
1.2 Projects objectives 4- 6
PART 2 AUDIT OB3ECTIVE, SCOPE, METHODOLODY AND RESULTS
2.1 Audit objectives 6
2.2 Audit scope 6
2.3 Audit methodology 6 - 7
2.4 Results of the audit 7
PART 3 STATEMENT OF MANAGEMENT'S RESPONSIBILITY 8
PART 4 INDEPENDENT AUDITORS' REPORT TO THE MANAGEMENT OF ENTRO ON THE
FINANCIAL STATEMENTS
4.1 Independent auditors' opinion 9-10
4.2 Statement of financial position 11
4.3 Statement of receipt and payments 12
4.4 Notes to the financial statements 13- 19
ANNEXES 20- 23
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EASTERN NILE TECHNICAL REGIONAL OFFICE (ENTRO)
REPORTS AND FINANCIAL STATEMENTS
OFFICIALS AND PROFESSIONAL ADVISORS
MANAGEMENT
Fekahmed Negash Executive Director
Teshome Atnafie Senior Regional Project Coordinator/Head
Water Resources Development Unit
El Sadig Goda Regional Finance and Administration Head
REGISTERED OFFICE
Eastern Nile Technical Regional Office
P,o. Box 27173 - 1000
Dessie road
Addis Ababa
AUDITORS
Kokeb and Melkamu Audit Partnership
(Chartered Certified Accountants-UK, Authorized Auditors in Ethiopia)
Bole Sub city, Woreda 2, Biselex Ethiopia Building
P 0 Box 33645
Addis Ababa, Ethiopia
PRINCIPAL BANKERS
Commercial Bank of Ethiopia
P 0 Box 255
Addis Ababa, Ethiopia
LEGAL ADVISORS
Dr Berhane Gebray and Associate, Corporate Lawyers and Consultants
Kokeb & Melkamu Audit Partnership, Chartered Certified Accountants (UK)
EASTERN NILE TECHNICAL REGIONAL OFFICE (ENTRO)
NOTES TO THE FINANCIAL STATEMENTS
1 ENTRO MANAGEMENT REPORT
1.1 Background
The Eastern Nile Technical Regional Office (ENTRO) was established by Eastern Nile Council of Ministers
(ENCOM) in 2002 for advancing the cooperative development of the water resources within the context of
Eastern Nile Subsidiary Action Program (ENSAP).
The main tasks of ENTRO include:
1. Support for ENSAP Management;
2. Secretariat support to ENSAP and ENCOM;
3. Liaison with donors and partners; and
4. Management and coordination of Integrated Development of Eastern Nile (IDEN).
Eastern Nile Subsidiary Action Program (ENSAP) is an investment program under the Basin Initiative. The
Eastern Nile Council of Ministers (ENCOM) representing Egypt, Ethiopia, South Sudan and Sudan leads the
program. ENSAP seeks, as objectives, to achieve joint action on the ground of poverty alleviation,
economic growth and reversal of environmental degradation.
The first ENSAP project is the Integrated Development of Eastern Nile (IDEN) project and initiates a
regional, integrated, multipurpose program through a first set of investment, which confers tangible, win-
win gains and demonstrates joint action between the Eastern Nile countries.
Preparation of ENSAP investment project is funded through grants from the World Bank, African
Development Bank, and the Government of Canada, France, Norway, the Netherlands and Japan. ENTRO
has its own operational budget, financed by the member of Governments and through various aid
programs.
Brief descriptions of ENTRO's major on-going projects are as follows:
1.2 Project objectives
1.2.1 Nile Cooperation for Results Project (N-CORE)
The objective of the project is to facilitate cooperative water resource management and development in
the Nile Basin. The project has their components.
PART A: Advancing Nile Basin-wide Cooperation and Analysis which provides support to the NBI in basin-
wide core functions of facilitating cooperation and water resources management. This part is implemented
by Nile-SEC.
PART B: Promotion of Sustainable Development and Planning in the Nile Equatorial Lakes Region which
provides support to NBI in its efforts to advance investment opportunities in the Nile Equatorial Lakes.
NELSAP CU is responsible to accomplish this section.
PART C: Enhancing Eastern Nile Planning and sustainable development: providing support to NBI in
promoting cooperative activities, water resource management and sustainable development in the Eastern
Nile. This part is executed by ENTRO. It includes the following activities.
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EASTERN NILE TECHNICAL REGIONAL OFFICE (ENTRO)
NOTES TO THE FINANCIAL STATEMENTS (Continued)
1 ENTRO MANAGEMENT REPORT (Continued)
1.2.1 Nile Cooperation for Results Project (N-CORE) (Continued)
a) Carrying out a program aimed at improving public domain access to the Eastern Nile knowledge
base including:
* developing analytical and forecasting tools for investment preparation and flood and drought
management;
* enhancing knowledge partnership with stakeholder networks; and
* promoting regional cooperation activities.
b) Carrying out a program aimed at promoting sustainable development and growth in the Eastern
Nile such as technical assistance to improve dam safety, assistance in the preparation of new
watershed management projects, and the provision of training to the networks of environmental
and social specialists.
The programme is financed by the Nile Basin Trust Fund and the Cooperation in International Waters in
Africa Trust Fund with budgets of USD 13.8 million and USD 14.5 million, respectively. The grant from
NBTF was closed in Dec 31, 2015. However, the grant from CIWA continues to November 2020. Initially,
Part C of the project had a total grant amount of USD IM for which project closing date was April 2017.
Subsequently, the grant had been amended to USD 1.25M without changing the closing date. However,
the project was amended again by increasing the scope of the activities and the grant amount. An
additional fund amount of USD 3.4M was added to the previous grant amount and the total grant amount
increased to USD 4.65M. The grant closing date has been also extended to November 30, 2020.
Additional activities under this component will build on the momentum generated by ENTRO's successful
flood forecasting, regional dam safety, and MSIOA process. The component will include support for ENTRO
to (i) continue and expand issuance of seasonal and daily flood forecasts to governments, communities,
NGOs, including potentially to South Sudan; (ii) build technical capacity in new national dam safety
offices, including through strengthening the working partnership of a regional network of dam operators;
(iii) provide increased real-time and technical data and analysis to countries; (iv) scale-up ENTRO's young
professionals program and academic partnerships to continue building a new set of leaders in the Eastern
Nile, among others; and (v) undertake an evaluation of the success of various pilot livelihood-based
integrated watershed management interventions conducted by ENTRO, to inform riparian-led scale up of
select best and most viable practices, as well as training of practitioners on lessons learned.
1.2.2 GIZ Support to NBI-ENTRO
National training on Hydro-diplomacy / Negotiation technique
The objective of the financing agreement is to facilitate a training program on hydro-diplomacy
/negotiation to improve the national capacity of Eastern Nile countries technical and negotiating teams to
undertake effective negotiation that confers win-win outcomes for all parties and thus make possible the
building of lasting, institutionalized resource management regime in the Eastern Nile. It had a total grant
agreement of USD 89,503 through August to December 2017.
Strengthening hydro-diplomacy in the Eastern Nile cooperation process
The objective of the financing agreement was to enable NBI/ENTRO to contribute to strengthening hydro-
diplomacy in the Eastern Nile Basin. To enhance the capacity of key actors from the Nile riparian states to
contribute to a cooperative solution of the Nile water conflict and effectively engage in the political
process. It had a total grant agreement of Euro 184,502 (equivalent to USD 214,244) through January
2018 to June 2019, subsequently extended to September 2021.
Integration of wetland water demand and e-flows requirements for the Sudd, Machar Marshes
and Baro-Akobo-Sobat Wetlands into basin planning
The objective of the financing agreement was to strengthen the technical and institutional capacities for
sustainable management wetlands of transboundary relevance in the Nile Basin. It had a total grant
agreement of Euro 304,426 (equivalent to USD 353,500) through January 2018 to March 2021.
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EASTERN NILE TECHNICAL REGIONAL OFFICE (ENTRO)
NOTES TO THE FINANCIAL STATEMENTS (Continued)
1 ENTRO MANAGEMENT REPORT (Continued)
1.2.2 GIZ Support to NBI-ENTRO (Continued)
Support to implementation of the NBI EN Action Plan 2017-2022
The objective of the financing agreement is the implementation of the NBI EN Action Plan 2017-2022 with
a specific objective to enhance the capacity of the NBI to build consensus amongst riparian states on the
sustainable and cooperative management and development of the basin's water resources. It has a total
grant agreement of Euro 543,075 (equivalent to USD 631,703) through July 2017 to September 2021.
2 AUDIT OBJECTIVES, SCOPE, METHODOLOGY AND RESULTS
2.1 Audit objectives
The objective of the audit is to express an opinion on the Eastern Nile Technical Regional Office financial
statements for the period ended 30 June 2020. The audit includes but not limited to the following tasks:
* Perform reviews of the accounting records and ascertain whether the laid down financial procedures
are complied with;
* Review evaluates and comments on the organization's compliance to the World Bank guidelines.
* Review and evaluate the organization's accounting policies and administrative controls and report any
significant weaknesses, together with recommendations for improvement and ensure that the
respective accounts manual is updated in accordance with the respective guidelines;
* Determine whether the management and financial systems, including internal controls, within the
components are adequate for efficient and prudent management of funds;
* Comment on the use of funds visa- vis approved budgets in relation to the agreement between the
organization and donors;
* Assess the compliance with administrative/legal/fiscal issues regarding local employees contracted
under the projects;
* Recommend possible improvements and/or actions in any area on financial management and
especially areas where weaknesses were noted; and
* Follow up on the status of prior period audit recommendations.
2.2 Audit scope
The audit scope required us to carry out sufficient audit steps and procedures to ensure that the audit
objectives were met for the period ended 30 June 2020. Details of the steps and procedures are given
below.
2.3 Audit Methodology
We conducted the 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 whether
the financial statements are free from material misstatement.
Internal controls
Evaluated significant internal controls to obtain a sufficient understanding of the design of relevant
controls, policies and procedures and whether they have been in operation during the period under
review.
Compliance with agreement terms and applicable laws and regulations
Reviewed, assessed and reported on compliance with the terms and conditions of the agreement
Representations by grantees
Obtained specific written representations from management.
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EASTERN NILE TECHNICAL REGIONAL OFFICE (ENTRO)
NOTES TO THE FINANCIAL STATEMENTS (Continued)
2 AUDIT OBJECTIVES, SCOPE, METHODOLOGY AND RESULTS (Continued)
2.3 Audit Methodology (Continued)
Contractual obligations
* Appraised relevant documents such as agreements between Nile Basin Trust Fund with Nile Basin
Initiative as well as documents concerning rights and obligations with a view to providing a
comprehensive appraisal of projects.
* Verified compliance of projects expenditures with relevant terms of agreements as well as all the
applicable rules.
* Verified compliance of the recipient with the terms and conditions of the agreement with the donor.
* Ensured timely submission of interim unaudited financial reports for the project as stipulated in the
agreement.
Receipts and disbursements
Verified compliance with the disbursements and procurement procedures set up for ENTRO.
Implementation
* Examined whether the expenditures are classified in accordance with the budget or the project proposal
where the latter forms part of the contract with the recipient.
* Reviewed bank statements and accounts of the recipient and other relevant books of accounts and
assessed whether they show a complete view of the income received and expenditure incurred in
accordance with generally accepted principles.
* Verified and confirmed that all commitments are genuine, with the relevant agreements disclosed within
the financial records and are for the pursuance of agreed Project objectives.
* Examined a representative sample of payments transactions of and within the Project including accuracy
and completeness of records.
* Verified individual Project accounts and gave an opinion and/ or advice regarding the manner they are
operated.
Other income sources
* Established whether other income generated by the Project, such as interest, in-kind/local contributions,
exchange gains, etc.; have been used in furtherance of the Project objectives
* Verified that contributions made towards project activities were made and used in accordance with
relevant agreement.
2.4 Results of the audit
2.4.1 Summary of results by audit objectives
(i) Reach an opinion as to the validity of the financial statements.
In our opinion, the financial statements give a true and fair view of the sources and uses of funds
in accordance with the accounting policies set out on note 4.4 and in conformity with the grant
agreement
(ii) Report on the financial management and internal controls findings
We reviewed the internal control system and except for the matter referred in the management
letter issued separately, we concluded that the system was adequate to meet the needs of the
program.
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EASTERN NILE TECHNICAL REGIONAL OFFICE (ENTRO)
3 STATEMENTS OF MANAGEMENT'S RESPONSIBILITIES
The management of Eastern Nile Technical Regional Office is responsible for preparing the financial
statements for each financial year which gives a true and fair view of the Organization as at the end of the
year and of the operating results for that year. The management of Eastern Nile Technical Regional Office
is required to ensure the organization keeps proper accounting records which disclose with reasonable
accuracy at any time the financial position of the organization. They are also responsible for safeguarding
the assets of the organization.
The management of Eastern Nile Technical Regional Office is responsible for the preparation of these
financial statements that give a true and fair view in accordance with the financial reporting provisions of
the World Bank, the accounting policies stated in section 4.4 of this report and for such internal controls
as the management determine are necessary to enable the preparation of the financial statements that
are free from material misstatement, whether due to fraud or error.
The management of Eastern Nile Technical Regional Office accepts responsibility for the financial
statements which has been prepared using appropriate accounting policies supported by reasonable and
prudent judgments and estimates, in conformity with the financial reporting provisions of the World Bank,
the accounting policies stated in note 4.4 to the financial statements. The management of Eastern Nile
Technical Regional Office is of the opinion that the financial statements give a true and fair view of the
state of the financial affairs of the Organization and of the results of its activities. The management of
Eastern Nile Technical Regional Office further accepts responsibility for the maintenance of accounting
records which may be relied upon in the preparation of the financial statements, as well as adequate
systems of internal financial control.
The management also accepts responsibility for:
i) designing, implementing and maintaining such internal control as they determine necessary to
enable the presentation of financial statements that are free from material misstatement,
whether due to fraud or error;
ii) selecting suitable accounting policies and applying them consistently; and
iii) making accounting estimates and judgements that are reasonable in the circumstances.
The management certifies that, to the best of their knowledge, the information furnished to the auditors
for the purpose of the audit was correct and is an accurate presentation of ENTRO's financial transactions.
Nothing has come to the attention of ENTRO Management to indicate that the ENTRO will not remain a
going concern for at least the next twelve months from the date of this statement.
Signed on behalf of the management by:
Fekahmed Negash El Sadig Goda
Executive Director Regional Finance and Administration Head
October 2, 2020
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4.1 INDEPENDENT AUDITORS' REPORT TO EASTERN NILE COUNCIL OF MINISTERS
ON THE FINANCIAL STATEMENTS OF EASTERN NILE TECHNICAL REGIONAL OFFICE (ENTRO)
Opinion
We have audited the accompanying financial statements of Eastern Nile Technical Regional Office
(ENTRO), set out on pages 11 to 19 which comprise the statement of financial position as at 30 June 2020
and receipts and payments for the year then ended, and a summary of significant accounting policies and
other explanatory notes.
In our opinion, the accompanying financial statements give a true and fair view of the cash receipts and
expenditure of the Organization and the funds at and for the year ended 30 June 2020 were utilized for
the purpose defined in the funding agreement and in accordance with the accounting policies set out in
note 4.4 to the statement and the financial reporting provisions of the donors.
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs), 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 ENTRO in accordance with
International Ethics Standards Board for Accountants Code of Ethics for Professional Accountants (IESBA
Code), together with other ethical requirements that are relevant to our audit of the financial statements
in Ethiopia, 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.
Report on other requirements
In all materials respects, we confirm that:
i. External funds have been used in accordance with the conditions of the relevant financing
agreements, with due attention to economy and efficiency, and only for the purposes for which
the financing was provided;
ii. Goods and services financed have been procured in accordance with the relevant financing
agreements and the financiers' procurement policies and procedures;
iii. All necessary supporting documents, records, and accounts have been kept in respect of all
Project ventures including expenditure reported using statements of expenditure (SOE) method
of disbursement;
iv. Designated Accounts have been maintained in accordance with the provisions of the relevant
financing agreements and disbursement letter and funds disbursed out of the Accounts were used
only for the purpose intended in the financing agreement;
v. The financial statements have been prepared in accordance with the organization's accounting
policies and relevant World Bank guidelines;
vi. National laws and regulations have been complied with, and that the financial and accounting
procedures approved for the project; and
vii. There is verifiable ownership by ENTRO or beneficiaries in line with the financing agreement in
respect of assets procured.
Management's Responsibility for the Financial Statements
ENTRO's management is responsible for the preparation of financial statements that give a true and fair
view in accordance with in accordance with the financial reporting provisions of the World bank, the
accounting policies stated in section 4.4 of this report and for such internal controls as management
determine are 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, the management is responsible for assessing the ENTRO'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 management either intend to liquidate or to cease
operations, or have no realistic alternative but to do so.
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INDEPENDENT AUDITORS' REPORT TO EASTERN NILE COUNCIL OF MINISTERS
ON THE FINANCIAL STATEMENTS OF EASTERN NILE TECHNICAL REGIONAL OFFICE (ENTRO)
(continued)
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, weather 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 ISAs 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.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional
scepticism 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 Organization's internal control.
* Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the management.
* Conclude on the appropriateness of the management'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 ENTRO's ability to continue as a going concern. If we
conclude that a material uncertainty exists, we are required to draw attention in our auditor's 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 auditor's
report. However, future events or conditions may cause ENTRO 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 statement represents the underlying transactions and events in
a manner that achieves fair presentation.
We communicate with the management 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.
The engagement partner on the audit resulting in this independent auditors' report is Melkamu Belete.
Melkamu Belete
Partner
Kokeb and Melkamu Audit Partnership
Chartered Certified Accountants and Authorized Auditors
(Auditors' of Eastern Nile Technical Regional Office)
Addis Ababa
October 2, 2020
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EASTERN NILE TECHNICAL REGIONAL OFFICE (ENTRO)
4.2 STATEMENT OF FINANCIAL POSITION
Note 2020 2019
Current Assets USD USD
Cash and bank balances 4.7 1,416,890 1,903,813
Receivables 4.8 123,781 122,652
Total Assets 1,540,671 2,026,465
Current Liabilities
Payables 4.9 79,379 41,636
Fund balance
Accumulated fund balance 4.3 1,461,292 1,984,829
Total Funds and Liabilities 1,540,671 2,026,465
These financial statements on pages 11-19 were approved by ENTRO management on October 2, 2020
and signed on its behalf
Feka med Negash",, El ,Sad0gGoda
Executive Director a al Finance and Administration Head
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EASTERN NILE TECHNICAL REGIONAL OFFICE (ENTRO)
4.3 STATEMENT OF RECEIPTS AND PAYMENTS
Note
2020 2019
INCOME USD USD
Member countries contributions 4.5 333,333 662,863
Other donors' contribution 4.5 1,281,698 1,380,939
Other income 17,655 2,768
Total income 1,632,686 2,046,570
PAYMENTS
Personnel costs 329,595 290,160
Supplies and services 130,665 78,997
Service costs and charges 1,188,049 852,815
Conference and training 392,476 279,848
Field travel expenses 34,008 -,183
Capital expenditure 81,432
81,432112,404
Total payments 5 2,156,223 1,621,407
Excess of Income (Expenditure) (523,538) 425,163
Opening Fund balance as at 1 Jul 1,984,829 1,559,666
Closing Fund Balance as at June 30 1,461,292 1,984,829
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EASTERN NILE TECHNICAL REGIONAL OFFICE (ENTRO)
NOTES TO THE FINANCIAL STATEMENTS
4.4 SIGNIFICANT ACCOUNTING POLICIES
4.4.1 Basis of preparation
The financial statements have been prepared on a modified cash basis i.e. Cash receipts and
disbursements modified to accrue for outstanding payables and receivables.
4.4.2 Budget
The budget is developed on the same accounting basis (modified cash basis), same classification basis,
and for the same period as for the financial statements. The budget was approved as required by the
standard conditions of the grant and work-plan as approved by the governance.
4.4.3 Income
Income represents amounts received in US dollar from member country contributions and other donor
contributions during the year. Income is recognised when the funds are received into the bank. The
balance of funds for the period represents amounts not utilised as at the close of the period.
4.4.4 Expenditure
Expenditure represents amounts disbursed and costs incurred denominated in US dollar. They also
include losses arising on fluctuation of the US dollar against the Ethiopian Birr.
4.4.5 Fixed Assets
Fixed assets are expensed on purchase in the period of acquisition. ENTRO maintains separately an asset
register that track all the Organization's fixed assets.
4.4.6 Imprest
Funds transferred to components are accounted for as imprest and expensed when the financial
statements and retirements have been submitted and accepted by ENTRO.
4.4.7 Taxation
Income received by ENTRO is not subject to tax since it is exempted from any form of tax as it is donor
funds.
4.4.8 Foreign currency transactions
Functional currency translation
Functional and presentation currency
Items included in the financial statements are measured using the currency of the primary economic
environment in which the entity operates ('the functional currency'). The financial statements are
presented in United States Dollars ("USD") which is the Organization's functional currency.
Transactions and balances
Cash receipts and payments arising from transactions in a foreign currency are recorded in the
financial statements using the actual rate of exchange. Foreign currency transactions are translated
into the functional currency of the Organization using the exchange rates prevailing at the dates of
the transactions. Foreign exchange gains and losses resulting from the settlement of such
transactions and from the translation at year-end exchange rates of monetary assets and liabilities
denominated in foreign currencies are recognized in statements of receipts and payments.
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EASTERN NILE TECHNICAL REGIONAL OFFICE (ENTRO)
NOTES TO THE FINANCIAL STATEMENTS (Continued)
4.4 SIGNIFICANT ACCOUNTING POLICIES (Continued)
4.4.9 Fund balances brought forward
These relate to unused funds that were carried forward from prior period. The amounts agree to the
audited financial report of 30 June 2019.
4.5 GRANT
The income received during the period was as follows:
2020 2019
Note Record Confirmed Record Confirmed
USD USD USD USD
Local - - -
Foreign
Member countries contributions 4.5.1 333,333 333,333 662,863 662,863
Other donors' contribution 4.5.1. 1,281,698 1,281,698 1,380,939 1,380,939
1,615,031 1,615,031 2,043,802 2,043,802
4.5.1 Contributions
Based on NBI harmonized manual, Income from donors are recognized as income in the book of
ENTRO when received in to ENTRO's bank account.
4.6 NON-CURRENT ASSETS
Purchase of fixed assets is expensed on acquisition. ENTRO maintains an asset register that tracks all
project fixed assets, and the existence and beneficial ownership has been verified by the Organization.
4.7 CASH AND BANK BALANCES
The cash and bank balances as at 30 June:
2020 2019
USD USD
Cash on hand 278 2,312
Cash at Bank 1,416,612 1,901,501
1,416,890 1,903,813
Kokeb & Melkamu Audit Partnership, Chartered Certified Accountants (UK)
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EASTERN NILE TECHNICAL REGIONAL OFFICE (ENTRO)
NOTES TO THE FINANCIAL STATEMENTS (Continued)
4.8 RECEIVABLES
Receivable include the followings:
2020 2019
USD USD
Sundry debtors 91,744 60,808
VAT receivable 14,692 17,103
Staff advances 17,345 44,741
123,781 122,652
4.9 PAYABLES
2020 2019
USD USD
Payables amounts include the following:
Accounts payable 4,848 5,070
Accruals 35,467 12,928
Sundry payables 39,064 23,638
79,379 41,636
4.10 CURRENCY
The financial statements are presented in US dollars (USD).
Kokeb & Melkamu Audit Partnership, Chartered Certified Accountants (UK)
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EASTERN NILE TECHNICAL REGIONAL OFFICE (ENTRO)
NOTES TO THE FINANCIAL STATEMENTS (Continued)
Note 6 Statement of Receipts and Expenditure - Nile Cooperation for Results Project (CIWA-NCORE)
Jul - Sep Oct - Dec Jan - Mar Apr - Jun Total
2019 2019 2020 2020 Year Ended
For the Reporting Period June 30, 2020
USD USD USD USD USD
1) Income
1a) Deposits
Replenishment of DA-WA 016 17,928 17,928
Replenishment of DA-WA 017 77,937 - 77,937
Replenishment of DA-WA 018 149,443 149,443
Replenishment of DA-WA 019 675,360 675,360
Replenishment of DA-WA 020 - 0
Total Deposits 95,865 0 824,803 920,668
1b) Interest
Total Interest Earned-Cummulative - - -
1c) Total Available Funds - 95,865 0 824r8O3 920,668
2) Expenditure
Project Costs - Quarter 1 350,073 - 350,073
Project Costs - Quarter 2 - 267,164 - 267,164
Project Costs - Quarter 3 - 325,612 - 325,612
Project Costs - Quarter 4 - 358,494 358,494
Exchange Rate Loss - Cummulative - - - -
Total Expenditure 350,073 ___2 67164 325,612 358,494 1,301,343
Surplus/Deficit (380,675)
Fund Balance Beginning 1,153,412
Fund Balance Ending 772,737
Represented By:
Current Assets
Cash and bank balance 706,374
Debtors and prepayments 70,824
777,198
Less:Current Liability
Accounts payable 4,461
Net Current Assets 772,727-
17
EASTERN NILE TECHNICAL REGIONAL OFFICE (ENTRO)
NOTES TO THE FINANCIAL STATEMENTS (Continued)
Note 7 Statement of Receipts and Expenditure - Country Contribution
Total Actual
Year Ended Cumulative
ApBudge June 30, To Date
Budget Line Description 2020
USD USD USD
Income
Member Countries Contribution-Eygypt -
Member Countries Contribution-Ethiopia 333,333 333,333 333,333
Member Countries Contribution-South Sudan 333,333 -
Member Countries Contribution-Sudan 333,333 0 0
Other Income 15,930 15,930
Exchange Gain/Loss - Revaluation - 0
Total Income 1,000,000 349,263 349,263
Expenditures
Personal Costs 119,967 119,967
Supplies and Services 55,914 55,914
Service Costs and Charges 270,522.12 270,522
Conference and Training 10,869 10,869
Field Travel Expense -
Capital Expenditure - _
Total Expenditure 457,273 457,273
Surplus/Deficit (108,010) (108,010)
Fund Balance Beginning 315,761 315,761
Fund Balance Ending 207,751 207,751
Represented By:
Current Assets
Cash and bank balances 226,813
Debtors and prepayments 44,619
271,432
Less: Current Liability
Accounts payable 63,680
Net Current Assets 207,751
18
EASTERN NILE TECHNICAL REGIONAL OFFICE (ENTRO)
NOTES TO THE FINANCIAL STATEMENTS (Continued)
Note 8 Statement of Receipts and Expenditure - GIZ Support to ENTRO
Total Approved Actual Actual Cummulat
Project Budget Previous Year Ended ive To
(For Life of Years June 30, Date
Budget Line Description 2020
USD USD
Income
Fund Received 667,160 537,803 265,348 803,151
Other Income - 860.00 109 969
667,160 538,663 265,457 804,120
Expenditure
Support to Hydro-diplomacy in Nile Basin (Agreement No. 89,503 61,233 61,233
83263718 & 83273048) 8
National training on negotiation techeniques - Ethiopia 29,000 19,827 - 19,827
National training on negotiation techeniques - South Sudan 30,503 24,753 - 24,753
National training on negotiation techeniques - Sudan 30,000 16,654 - 16,654
NBI-ENTRO workplanl (Agreement No. FA-2017-83257593) 56,000
Dam Cascade Mgt Study Phase I 56,000 - -
NBI-ENTRO workplan2 (Agreement No. FA-2017-83257602) 80,000 21,310 21,310
Dam Cascade Mat Study Consultation 56,000 21,310 - 21,310
Junior Media Expert 24,000 - - -
NBI-ENTRO AA Hydro-diplomacy (Agreement No. 81220020, 184,502 75,610 73,180 148,789
Euro)
Workshop & Training 180,002 49,749 69,669 119,418
Media Workshops 25,861 25,861
Administration Costs 2.5% 4,500 - 3,511 3,511
NBI-ENTRO Wet land (Agreement No. 81220168, Euro) 257,155 6,429 118,733 125,162
Integration of wetlands in river basin planning 18,545 18,545
Wetland management plans 254,609 6,429 99,214 105,643
Bank charge 2,546 - 974 974
NBI-ENTRO / Implementation of EN Action Plan 2017-2022 981,700 99,121 189,871 288,992
(Aareement No. 81229622, Euro)
Dam Cascade 493,920 71,045 24,417 95,462
Hydrological Monitoring 58,518 3,857 11,030 14,887
Media and Communication 19,518 1,754 1,347 3,101
Organisational and Capacity Development 45,000 - -
Project Staff 340,800 22,000 139,845 161,845
Bank charge 23,944 465 6,321 6,786
Loss on Exchange rate 6911.74 6,912
1,648,860 263,703 381,784 645,487
Surplus/Deficit 274,960 (116,327) 158,633
Fund Balance Beginning - 267,244 -
Gain/Loss on Exchange Revaluation (7,716) (4,719) (12,435)
Fund Balance Ending 267.244 146.198 146,198
Represented By:
Current Assets
Cash and bank balance 149,941
Debtors and prepayments 4,051
153,992
Less:Current Liability
Accounts payable (7,794)
Net Current Assets 146,198
Note:
Some of the grant aggrements are in EURO. Their income and expenditure are converted to USD as per the policy
of ENTRO. Thus Euro budget is converted to USD initially at the rate prevailing on the date of agreement.
19
EASTERN NILE TECHNICAL REGIONAL OFFICE (ENTRO)
STATEMENT OF DISBURSMENT
ANNEX -1
A. CIWA-NCORE
Consultancy
Service, Goods
and Workshop
and Training,
Operating Costs
USD
IFR No. Quarter Ended
Q1 September 30, 2019 350,073
Q2 December 31, 2019 267,164
Q3 March 31, 2020 325,612
Q4 June 30, 2020 358494
1.301.343
20
EASTERN NILE TECHNICAL REGIONAL OFFICE (ENTRO)
EXPENIDITURE FOR WORLD BANK PROJECTS-BY COST CATEGORY
ANNEX -2
A. CIWA-NCORE
Actual for the Cummultaive
Grant Amount y/e June 30,
Cost Category 2020
USD USD USD
Goods, Workshops and training, Consultancy service, 4,650,000 1,301,343 3,734,165
Operating Cost
21
EASTERN NILE TECHNICAL REGIONAL OFFICE (ENTRO)
DESIGNATED ACCOUNT RECONCILIATION STATEMENT
ANNEX-3
Currency: USD
CIWA-NCORE designated account reconciliation statement
Account number: 1000106187073
Depository bank: Commercial Bank of Ethiopia, IBD
P 0 Box 255
Addis Ababa, Ethiopia
Grant agreement: TF 013767
Currency : United States Dollars (US$)
2020 2019
Opening cash balance 1,116,656 757,559
Add:
Advance to and documentation of DA 920,668 1,257,348
Direct payment - -
Funds available during the year 2,037,324 2,014,907
Less:
Increase/Decrease in cash transferred to ETB account 44,581 79,936
Costs paid from USD DA 1,220,006 642,982
Increase/Decrease in Direct payments -
Increase/Decrease in receivables from other projects -
Incease/Decrease in advances payables to other projects 175,332
Total payments during the year 1,264,587 898,250
Closing cash balance at 30 June 772,737 1,116,656
Closing bank balance 722,857 1,119,106
Unsettled advances 70,824 (2,449)
Unpresented cheques at 30 June (16,483)
Unsettled Payables (4,461) -
Closing cash balance at 30 June 772,737 1,116,656
22
EASTERN NILE TECHNICAL REGIONAL OFFICE (ENTRO)
BUDGET UTILIZATION REPORT
AS AT 30 3UNE 2020
ANNEX-4
Currency: USD
BUDGET BUDGET
ORIGINAL REVISED UTILIZATION VARIANCE
CIWA - Nile Cooperation for Results Project 1,922,102 1,647,917 1,301,343 346,574
GIZ Support to ENTRO 1,113,345 718,188 381,783 336,405
Manchestr Univerity 0 15,792 (15,792)
0 32 (32)
Riparian Countries Contribution 424,858 424,858 457,273 (32,415)
3,460,305 2,790,963 2,156,223 634,740
23