KANO STATE COMMERCIAL AGRICULTURAL DEVELOPMENT PROJECT FINANCIAL STATEMENT FOR THE YEAR ENDED 31st DECEMBER 2016 KANO STATE COMMERCIAL AGRICULTURAL DEVELOPMENT PROJECT FINANCIAL STATEMENT FOR THE YEAR ENDED 31st DECEMBER 2016 CONTENTS PAGE Project Information and Professional Advisers 1 Report of Auditors 2 Significant Accounting Policies 3 Income and Expenditure Account 4 Balance Sheet 5 Statement of Cash Flow 6 Notes to Financial Statement 7-8 KANO STATE COMMERCIAL AGRICULTURAL DEVELOPMENT PROJECT PROJECT INFORMATION AND PROFESSIONAL ADVISERS PRINCIPAL OFFICERS 1.Salisu Kaila - Project Coordinator 2.Bashir Bello - Monitoring Officer 3. Sani Ibrahim - Agriculture/Productivity Officer 4. Shehu M. Barkum - Commercialization Officer 5. Saidu Kura Rabiu - Rural Infrastructure Officer 6. Garba Sabo Yakasai - Project Accountant 7. Musa Muhammed Gain - Procurement Officer 8 Abdullahi Indabawa - Project Internal Auditor 9 Mustapha Bello Bari - Head Project Financial Management Unit 10. Nazir Abba Yusif - Environmental & Social Management Officer 11. Kabir Abdul M. - Training Officer OFFICE ADDRESS Kano State Commercial Agricultural Development Project KM 9 Hadejia Road Kano State. AUDITORS Namadi Umar & Co (Chartered accountants) No.4 Suit 4 Abinsa [Hlouse Zaria Road Kano. BANKERS GT Bank Murtala Muhammed Way, Kano REPORT OF AUDITORS O THE MEMBERS OF THE KANO STATE COMMERCIAL ARICULTURAL DEVEOPMENT PROJECT Agrhave audited the accompanying financial statements of Kano State Commercial Agricultural Development Project as at 31 r December, 2016 set out on page 4 to 8 which have been prepared on the basis of the accounting policies set out on page 3 and other explanatory note on page V to 8. ResQecCtvejresponsibilities of directors and auditor I d accol vice with the provisiocu of the edict establishing the Project, the project management is resoopible for the preparation and fair presentation of these financial statements. It is our poiubilimy to torn (rn mnlefmnt opinion based on our audit, on these statements and to Wuport out- opilill "0 yod. Our renponsfirilny is to xpre's an opinion on these financial statements based on our audit. We oI<'d our aur3t In accordance with International Standards on Auditing. Those standards rec,urre that we comrply with ethical requirements arrd plan and perform the audit to obtain ienasorciyl0 a'ssuranc(, vvathi tho finrrircial stateriefi! s are free from material misstatement. Ch audit involves performing ptsocedures to obtain audit evidence about the amount and disclosures in the financial statemenorts. [ie procedures selected depend on the auditors' judgment, including the asse,smrn'rrt of (h tn isks of material misstatement of the financial statements, weather due to fraUd or error-. Ir trying to asses these risks, the auditors take into account internal control reev '.ance to the errtity' p)repcmitiori and fair presentation of the financial statements in order to 62igil Iadit procedures that cit appropriate in the circumstance, but not for the purpose of expi ennim an inlrion ('1 th( r K*flectiveness of the entity's internral control. An audit also includes ev,141'i'moT tirw al:[lorrtrn' accounting policie,1 used and the reasonableness of accounting est:mLltes friale ny rnanagerin(t, ais well as evalufrigii the overall presentation of the financiFl loicper)detit confirnrwhoawiu r of ( )i'ipleteness of the arccou ntirig records were riot available. Opinion hi our opifflon the, firiticrrl atein~r ont gives a true anid fair view of the state of affairs of the project ao; ot 31` Decn~ember, ?c 16 ia] of the deficit arrd cas,h flow for- the year ended. Chartered Accotintaf ts Kan. , 3G/1A KANO STATE COMMERCIAL AGRICULTURAL DEVELOPMENT PROJECT SIGNIFICANT ACCOUNTING POLICIES The following are the significant accounting policies which have been adopted by the Project. 1. Basis of Accounting The accounts are prepared on cash basis. Receipts and Payments are recognized in the books when money is received or paid. 2. Fixed Assets Fixed Assets are stated at cost 3. Depreciation No depreciation is provided on the assets. 4. FOREIGN EXCHANGE TRANSACTIONS Transaction in foreign currencies will be converted to naira at the ruling rate at the time of each transaction. Balances held in foreign currencies at the end of the year will be translated at the rate ruling on the balance sheet date. All exchange rate differentials are treated appropriately in the receipt and payment account. KANO STATE COMMERCIAL AGRICULTURAL DEVELOPMENT PROJECT RECEIPT AND PAYMENT ACCOUNT FOR THE YEAR ENDED 31ST DECEMBER, 2016 NOTE 2016 2015 N N RECEIPTS: Receipt from IDA 1,116,394,630 299,165,068 Other receipt 4 4,443244 6,442,950 Total Receipts 1,120,837,874 305,608,018 PAYMENTS: Agricultural Production and commercialization 5 713,762,362 280,273,534 Consultancy Training and Audit 126,781,786 57,577330 Operating Costs 85,930,036 94,076,059 Total Expenditure 926,474,184 _431 926,923 Excess/ (Deficit) of income over expenditure 19463&990 j26,318,905J 4 KANO STATE COMMERCIAL AGRICULTURAL DEVELOPMENT PROJECT BALANCE SHEET AS AT 31ST DECEMBER, 2016 NOTES 2016 2015 N N N N FIXED ASSETS 2 73,931,967 73,575,717 Bank Balance 3 253,550,125 59,542,685 Project Development Cost 10047,5444091 1L,47544,091 175 02 180662,493 FINANCED BY: IDA Fund 959,775,683 959,775,683 Other Receipts 415,250500 2088810 13!5 26 18 1,180,662,493 Project Coordinator Head of PFMU KANO STATE COMMERCIAL AGRICULTURAL DEVELOPMENT PROJECT CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST DECEMBER, 2016 2016 2015 N N Cash Flow From Financing Activities: Funds from IDA 1118,028,757 304,843,600 Total Cash Flow From Financing Activities: 1,118,028,757 304,843,600 CASH FLOW FROM INVESTING ACTIVITIES Interest Earned 2,809,117 764,418 Trainina and Consultancy (126,781,786) (57,577,330) Operating Costs (85,930,036) (94,076,059) Purchase of Fixed Assets (356,250) (1,687,200) Agriculture Production and Cornmercialization 713 762,362 280,273,534 Total Cash Outflow From Investing Activities (924,021,317) (432,849,705) NET CASH EQUIVALENT AT THE END OF THE YEAR 194,007,440 (128,006,105) CASH EQUIVALENT AT THE BEGINNING OF THE YEAR 59,542,685 187548,790 CASH AND CASH EQUIVAI ENT AT THE END OF THE YEAR 253,550125 59 542_685 PRESENTED BY: Bank and Cash Balance 253,550,125 59 542 685 Bank & Cash Balance at 31st Dec, 2013 253 550125 59 54285 6 г�- о r- г� � � о i N й й � � �г> Cf� с- `-� � ц'> г'э � с� � � С`") М гб � r- � � � �._ и � v � � F- и й ш � м гJ °� �� � � � со; I о _ � � t-'- ' ГII ГI�I � С3) � ,F !S> (�{ tLyfi С�.. 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