REPUBLIC OF RWANDA OFFICE OF THE AUDITOR GENERAL OF STATE FINANCES Kigali . ........ ... N-. The Minister M1E Ministry of Gender and Family Promotion (MIGEPROF) REC!' M AIL Kigali Date 2 1 2121 NO. D ear M adam . dled b RE: FINAL AUDIT REPORTS Enclosed herewith, please find the following final audit reports: * Financial and compliance audit reports of MIGEPROF, for the year ended 30 June 2019. * Financial and compliance audit reports of Great Lakes Emergency Sexual and Gender Based Violence and Women's Health (GLESGBV) Project, for the 6 months period ended 31 December 2019. I would like to take this opportunity to thank you and your finance team for all the support extended to my Office during the audit. Yours sincerely, A 77 GREAT LAKES EMERGENCY SEXUAL AND GENDER BASED VIOLENCE AND WOMEN'S HEALTH (GLESGBV) PROJECT AUDIT REPORTS (FORJtM-E 6 MMMYVTIS CPE RjOD EMDQ 31 QiECErMBER~2O19 GREAT LAKES EMERGENCY SEXUAL AND GENDER BASED VIOLENCE AND WOMEN'S HEALTH (GLESGBV) PROJECT AUDIT REPORT ON FINANCIAL STATEMENTS FOR 6 9MOS ERJOD EjVDED 31 DECEM BER 2019 GREAT LAKES EMERGENCY SEXUAL AND GENDER BASED VIOLENCE AND WOMEN'S HEALTH (GLESGBV) PROJECT AUDIT REPORT ON FINANCIAL STATEMENTS FOR THE 6 MONTHS PERIOD ENDED 31 DECEMBER 2019 TABLE OF CONTENTS 1. INTRODUCTION 2. STATEMENT OF MANAGEMENT RESPONSIBILITIES.......................................6 3. REPORT OF THE AUDITOR GENERAL........................................ ......................7 4. FINANCIAL STATEMENTS FOR THE SIX MONTHS PERIOD ENDED 31 DECEMBER 2019MBE AUDIT REPORT ON FINANCIAL STATEMENTS FOR THE 6 MONTHS PERIOD ENDED 31 DECEMBER 2019 1. INTRODUCTION 1.1. Background of the project Following the successful pilot of Isange One-Stop Centers (IOSCs), Rwanda is now embarking on a full-fledged national scale-up of the model in health facilities across the country. In 2013, Government of Rwanda developed the National Scaling-up Strategy for One Stop Centers in Rwanda. It strives to ensure the best possible prevention and response for survivors of gender based violence and child abuse, including refugees. In addition, it is recognized that quality services, conviction of perpetrators and sustained community awareness-raising help build the resilience of survivors and their families as well as prevent violence and abuse. It was agreed upon between the Government of Rwanda and the World Bank that this strategy would be used as the basis for support of the proposed project. On 6 August 2014, the Republic of Rwanda signed with International Development Association (IDA) / World Bank, a financing agreement worth SDR 9,710,000 (equivalent to USD 13.4 million) aimed at implementing Great Lakes Emergency Sexual and Gender Based Violence and Women's Health Project. Great Lakes Emergency Sexual and Gender Based Violence and Women's Health Project (GLESGBV) mission is to enable the government to scale up the Isange one-stop Centers (lOSCs), which provide integrated medical, psycho-social and legal support to SGBV survivors, across the country in order to avail services for around 30,000 survivors. More specifically, the beneficiaries of this project will include male, female and survivors, along with providing support to families of survivors. Great Lakes Emergency Sexual and Gender Based Violence and women's health project is operating under MIGEPROF from November 2014. MIGEPROF coordinates the implementation of the project in collaboration with Rwanda Biomedical Center (RBC), Rwanda Investigation Bureau (RIB), Rwanda Forensic Laboratory (RFL) and Ministry of Justice (MINIJUST). Office of the Auditor General of State Finances 2 GREAT LAKES EMERGENCY SEXUAL AND GENDER BASED VIOLENCE AND WOMEN'S HEALTH (GLESGBV) PROJECT AUDIT REPORT ON FINANCIAL STATEMENTS FOR THE 6 MONTHS PERIOD ENDED 31 DECEMBER 2019 1.2. Basic information Project Name Great Lakes Emergency Sexual and Gender Based Violence and Women's Health Project Agreement/Project IDA Credit Number 55250-RW number Parent Ministry MIGEPROF Funding sources The project's total source of funds is summarized in the table below; Source of funds Amount in USD IDA 13,455,000 Project duration/period Date of signature of credit/grant agreement: 06'h August 2014 Date of effectiveness: 61h November 2014 Date of initial project completion: 30'h June 2018 Date of first completion extension 30th June 2019 Date of second completion extension: 31" December 2019 Reporting The Ministry of Gender and Family Promotion (MIGEPROF) organization and Great Lakes Emergency Sexual and Gender based Violence and physical address Women's Health P. 0. Box 969 Kigali - Rwanda Project Objective The Project objective is to expand the provision of services to mitigate the short and medium term impact of Sexual and Gender based Violence. Main components/ The project key components/ activities are outlined below: activities Component 1: Holistic support to survivors of Sexual and Gender based Violence and violence prevention, and Component 2: Regional and national knowledge Sharing, Research and Capacity building. 〕江＿ GREAT LAKES EMERGENCY SEXUAL AND GENDER BASED VIOLENCE AND WOMEN'S HEALTH (GLESGBV) PROJECT AUDIT REPORT ON FINANCIAL STATEMENTS FOR THE 6 MONTHS PERIOD ENDED 31 DECEMBER 2019 1.4. The project structure The Project has a Steering Committee which is oversight organ over GLSEGBV activities. Members of the Steering Committee during the period under review and at the time of audit were as follows: N Title Institution Role 0 1. Minister MIGEPROF Chairperson 2. Minister MoH Member 3 . Minister MINIJUST Member 4. Inspector General of Police 'RNP Member 5. Minister/Minister of State MINALOC Member 6. Chief Gender Gender Monitoring Office Member (GMO) The management who held office during the 06 months period to 31 Decemeber 2019 and at the time of audit is as follows: No. Name Position 1. INGABIRE Assumpta MIGEPROF Permanent Secretary from 4 November 2019 to date 2. MURWANASHYAKA Acting MIGEPROF Permanent Secretary from Theophile 19,August 2019 up to 4 November 2019 3. UMUTONI GATSINZI MIGEPROF Permanent Secretary up to 18 Nadine August 2019 4.- TWAHIRWA A lex Pr cj e ct Man ager 5. HAKIZIMANA Alphonse Director of Administration and Finance from 29 July 2019 16. NTAKIRUTIMANA Antoine Accountant AUDIT REPORT ON FINANCIAL STATEMENTS FOR THE 6 MONTHS PERIOD ENDED 31 DECEMBER 2019 2. STATEMENT OF MANAGEMENT RESPONSIBILITIES Article 66 of the Organic Law No. 12/2013 of 12/09/2013 on State Finances and Property requires budget agencies to prepare and submit to the Ministry annual financial statements in a period of one month from the end of the fiscal year and submit their annual financial statements to the Auditor General of State Finances not later than 301h September of the following fiscal year. Article 19 of the Organic Law No 12/2013 further stipulates that the Chief Budget Manager is responsible for maintaining accounts and records of the budget agency, preparing reports on budget execution, managing revenues and expenditures, preparing, maintaining and coordinating the use of financial plans, managing the financial resources for the budget agency effectively, efficiently and transparently, ensuring sound internal control systems in the budget agency and safeguarding the public property held by the budget agency. As Chief Budget Manager, I accept responsibility for the annual financial statements, which have been prepared using appropriate accounting standards applicable to Public entities as determined by Article 99 of the Ministerial Order No. 001/16/10/TC of 26/01/2016 relating to financial regulations. These financial statements have been extracted from the accounting records of Great Lakes Emergency Sexual and Gender Based Violence and Women's Health Project (GLESGBV Project) and the information provided is accurate and complete in all material respects. The financial statements also form part of the consolidated financial statements of the Government of Rwanda. In my opinion, the financial statements give a true and fair view of the state of the financial affairs of GLESGBV Project. I further confirm that GLESGBV Project maintained proper accounting records which can be relied upon in the preparation of financial statements. I also confirm that adequate systems of internal control were maintained and operated effectively during the period to safeguard the assets of the budget agency. The Project activities ended in December 2019. Signature: AN INGABIRE Assumpta MIGEPROF Permanent Se Date: Office of the Auditor General of State Finances 6 GREAT LAKES EMERGENCY SEXUAL AND GENDER BASED VIOLENCE AND WOMEN'S HEALTH (GLESGBV) PROJECT AUDIT REPORT ON FINANCIAL STATEMENTS FOR THE 6 MONTHS PERIOD ENDED 31 DECEMBER 2019 3. REPORT OF THE AUDITOR GENERAL REPORT ON THE FINANCIAL STATEMENTS Ms. INGABIRE Assumpta MIGEPROF Permanent Secretary 3.1. Opinion As required by Article 165 of the Constitution of the Republic of Rwanda of 2003 revised in 2015, and Articles 6 and 14 of Law n' 79/2013 of 11/09/2013 determining the mission, organization and functioning of the Office of the Auditor General of State Finances (OAG), I have audited the financial statements of Great Lakes Emergency Sexual and Gender Based Violence and Women's Health Project for the six months period ended 31 December 2019. These financial statements comprise the statement of financial position as at 31 December 2019, and the statement of revenue and expenditure, statement of cash flows and and budget execution report for the six months period then ended, and a summary of significant accounting policies and other explanatory notes. These financial statements are set out on pages 10 to 27. In my opinion, the accompanying financial statements give a true and fair view of the financial position of Great Lakes Emergency Sexual and Gender Based Violence and Women's Health Project as at 31 December 2019, and of its financial performance and its cash flows for the period then ended in accordance with the guidelines provided by Ministerial Order n' 001/16/10/TC of 26/01/2016 relating to financial regulations and Organic Law No 12/2013/OL of 12/09/2013 on State Finances and Property. 3.2. Basis for Opinion I conducted my audit in accordance with the International Standards of Supreme Audit Institutions (ISSAls). My responsibilities under ISSAls are described in section 3.4 of this report. I am independent of Great Lakes Emergency Sexual and Gender Based Violence and Women's Health Project for the six months period ended 31 December 2019 and have fulfilled my ethical responsibilities in accordance with the ethical requirements that are relevant to my audit of financial statements of public entities as determined by the Code of ethics for International Organisation of Supreme Audit Institutions (INTOSAI). I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion. AUDIT REPORT ON FINANCIAL STATEMENTS FOR THE 6 MONTHS PERIOD ENDED 31 DECEMBER 2019 3.3. Responsibilities of management and those charged with governance for the Financial Statements According to Organic Law No 12/2013/OL of 12/09/2013 on State Finances and Property, management of GLESGBV Project is responsible for keeping accounting records and books of account, and preparation of financial statements in accordance with the financial regulations prescribed by the Minister in Ministerial order n' 001/16/10/TC of 26/01/2016 relating to financial regulations. This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation 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 the GLESGBV Project's ability to continue delivering on its founding objectives within the program duration, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless Government either intends to discontinue operations of the GLESGBV Project. Those charged with Governance of GLESGBV Project are the Steering Committee of the Project. The Steering Committee is responsible for overseeing GLESGBV's financial reporting process. 3.4. Auditor General's responsibilities for the audit of the financial statements My objective when conducting an audit is 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 my opinion. Misstatements can arise from fraud or error and are considered material if individually or in aggregate, they could reasonably be expected to influence economic decisions of users taken on the basis of these financial statements. An audit conducted in accordance with ISSAIs requires an auditor to exercise professional judgment and maintain professional scepticism throughout the audit and involves: * The identification and assessment of the risks of material misstatement of the financial statements, whether due to fraud or error; design and perform procedures responsive to those risks and to obtain sufficient and appropriate audit evidence to provide a basis for the auditor's 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 controls. * Obtaining 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 purposes of expressing an opinion on the effectiveness of internal control. * Evaluating the appropriateness of accounting policies used. the reasonableness of accounting estimates made by management. * Concluding on the appropriateness of 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 the GLESGBV Office of the Auditor General of State Finances 8 GREAT LAKES EMERGENCY SEXUAL AND GENDER BASED VIOLENCE AND WOMEN'S HEALTH (GLESGBV) PROJECT AUDIT REPORT ON FINANCIAL STATEMENTS FOR THE 6 MONTHS PERIOD ENDED 31 DECEMBER 2019 Project's ability to continue delivering on its founding objectives within the project duration as well as evaluating the presentation of the financial statements. * Evaluation of the overall presentation, structure and content of the financial statements, including disclosures, and whether the financial statements represent the underlying trij9tois and events in a manner that achieved fair presentation. L AUDIT REPORT ON FINANCIAL STATEMENTS FOR THE 6 MONTHS PERIOD ENDED 31 DECEMBER 2019 4. FINANCIAL STATEMENTS FOR THE SIX MONTHS PERIOD ENDED 31 DECEMBER 2019 4.1. STATEMENT OF REVENUE AND EXPENDITURE FOE THE SIX MONTHS PERIOD ENDED 31 DECEMBER 2019 Description Notes 6 months to 12 months to 31 December 2019 30 June 2019 Frw Frw Revenue Operating revenue Fees, fines, penalties and licences 2 1,415,272 Other revenue 3 11,597,095 9,187,894 Net operating revenue 13,012,367 9,187,894 Loans and borrowings Proceeds from borrowings 4 1,533,099,889 4,667,798,597 Total revenue (A) 1,546,112,256 4,676,986,491 Expenses Operating expenses Use of goods and services 5 737,852,131 2,758,275,724 Grants and other transfer payments 6 - 426,180,325 Other expenses 7 - 1,442,272 Total operating expenses 737,852,131 3,185,898,321 Capital payments Capital expenditure 8 790,759,736 1,458,208,476 Total expenses (B) 1,528,611,867 4,644,106,797 Surplus (C=A-B) 17,500,389 32,879,694 The notes set out on pages 14 to 27 form an integral part of the financial statements. Office of the Auditor General of State Finances 10 GREAT LAKES EMERGENCY SEXUAL AND GENDER BASED VIOLENCE AND WOMEN'S HEALTH (GLESGBV) PROJECT AUDIT REPORT ON FINANCIAL STATEMENTS FOR THE 6 MONTHS PERIOD ENDED 31 DECEMBER 2019 4.2. STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2019 Description Notes Balance as at Balance as at 31 December 2019 30 June 2019 Frw Frw Financial assets Bank balance 9 559,392,551 245,889,686 Total financial assets 245,889,686 Less: Financial liabilities - Accounts payable 10 244,770,573 (2,347,344) Net financial assets 314,621,978 243,542,342 Representing Accumulated surplus from previous 11 243,542,342 208,492,887 years Net surplus/deficit for current year 17,500,389 32,879,694 Prior year adjustments 12 53,579,247 2,169,761 Total closing balances 314,621,978 243,542,342 The notes set out on pages 14 to 27 form an integral part of the financial statements. AUDIT REPORT ON FINANCIAL STATEMENTS FOR THE 6 MONTHS PERIOD ENDED 31 DECEMBER 2019 4.3. STATEMENT OF CASH FLOWS FOR THE SIX MONTHS PERIOD ENDED 31 DECEMBER 2019 Description 6 months to 12 months to 31 December 30 June 2019 2019 Frw Frw Cash flows from operating activities Fees, fines, penalties and licenses 1,415,272 Other revenue 11,597,095 9,187,894 Payments for operating expenses Use of goods and services (737,852,131) (2,758,275,724) Grant and other transfer payments - (426,180,325) Other expenses - (1,442,272) Adjustedfor Changes in payables 242,423,229 1,120,664 Adjustment during the period 53,579,247 2,169,761 Net cash flows used in operating activities (428,837,288) (3,173,420,002) (A) Cash flows from investing activities Purchase of capital items (790,759,736) (1,458,208,476) Net cash flows used in investing activities (790,759,736) (1,458,208,476) (B) Cash flow from financing activities Proceeds from borrowing 1,533,099,889 4,667,798,597 Net cash flow from financing activities (C) 1,533,099,889 4,667,798,597 Net increase in cash and cash equivalents 313,502,865 36,170,119 (D=A+B+C) Cash and cash equivalents at beginning of 245,889,686 209,719,567 the year (E) Cash and cash equivalents at end of the 559,392,551 245,889,686 year (F=D+E) The notes set out on pages 14 to 27 form an integral part of the financial statements. Office of the Auditor General of State Finances 12 GREAT LAKES EMERGENCY SEXUAL AND GENDER BASED VIOLENCE AND WOMEN'S HEALTH (GLESGBV) PROJECT AUDIT REPORT ON FINANCIAL STATEMENTS FOR THE 6 MONTHS PERIOD ENDED 31 DECEMBER 2019 4.4. BUDGET EXECUTION REPORT FOR THE SIX MONTHS PERIOD ENDED 31 DECEMBER 2019 Description Budget Actual Variance Performan ce A B C=A-B (BIA)*100 Frw Frw Frw Revenue Fees, fines, penalties - 1,415,272 (1,415,272) and licenses Other revenue 11,597,095 (11,597,095) Proceeds from 1,803,094,047 1,533,099,889 269,994,158 85.03 borrowings Total revenue 1,803,094,047 1,546,112,256 256,981,791 85.75 Expenses Use of goods and 1,009,949,698 737,852,131 272,097,567 73.06 services Capital expenditure 793,144,349 790,759,736 2,384,613 99.70 Total expenses 1,803,094,047 1,528,611,867 274,482,180 84.77 The notes set out on pages 14 to 27 form an integral part of the financial statements. Explanation of variances: Variance on use ofgoods and services: The variance was caused by the pending goods and services that was not invoiced as at 31 December 2019 at MIGEPROF and RBC level, However, these goods and services were invoiced and settled during the grace period of 4 months ended 30 April 2020 after the project closure date of 31 December 2019. The financial statements for the six months period ended 31 December 2019 were approved by the Project management and signed on its behalf by: Prepared by: NTAKIRUTIMANA Antoine Accountant Signature Date Checked by: HAKIZIMANA Alphonse Director of Finance and Administration Signature Date Checked by: TWAHIRWA Alex Project Manager i aue Date Approved by: INGABIRE Assumpta Permanent Secretary re Date AUDIT REPORT ON FINANCIAL STATEMENTS FOR THE 6 MONTHS PERIOD ENDED 31 DECEMBER 2019 4.5. NOTES TO THE FINANCIAL STATEMENTS 1. Accounting policies a) Basis of preparation The Financial Statements have been prepared in accordance with the requirements of Article 66 of the Organic Law on State Finances and Property being Law No. 12/2013 of 12 September 2013 and Article 99 of the Ministerial order No 001/16/10/TC of 26 January 2016 relating to financial regulations. The financial statements are also prepared in compliance to IPSAS in the context of Ministerial Order N*001/16/10/TC of 26 January 2016 relating to Financial Regulations to the following extent: 1. Generally, transactions are recognized only at the time the associated cash flows take place; 2. The expenditure on acquisition of fixed assets is not capitalized. Thus fixed assets are written-off on acquisition and the wear and tear (depreciation) of those assets is not recorded in the books of account; and 3. Prepaid expenditure/advances is written-off during the period of disbursement. The recognized "modification" is as follows: 1. Invoices for goods and services which are outstanding on the date of the closure of the fiscal year are recognized as liabilities for that specific fiscal year; 2. Loans and advances are recognized as assets/liabilities at the time of disbursement and related interest is recognized only when disbursed. Interest payable on public debt is accrued; and 3. Book balances denominated in foreign currencies are converted into the Rwandan Francs at rates of exchange ruling on that date issued by the National Bank of Rwanda. The associated exchange losses are recorded as recurrent expenditure while the exchange gains are recorded as recurrent revenue. b) Reporting entity The financial statements are for Great Lakes Emergency Sexual and Gender Based Violence and Women's Health Project (GLESGBV Project). c) Presentation currency The financial statements are reported in Rwandan Francs. d) Revenue and receipts * Other revenue Other income includes gain on currency exchange rates. Office of the Auditor General of State Finances 14 GREAT LAKES EMERGENCY SEXUAL AND GENDER BASED VIOLENCE AND WOMEN'S HEALTH (GLESGBV) PROJECT AUDIT REPORT ON FINANCIAL STATEMENTS FOR THE 6 MONTHS PERIOD ENDED 31 DECEMBER 2019 * Proceeds from borrowings (loans from development partners) These are funds received from the World Bank. These funds are recognized as revenue when the Project receives the cash from the Bank. e) Expenditure The main category of expenditure includes use of goods and services, capital expenditure, and grants and other transfers payments. Expenditure is recognized when incurred and includes all outstanding invoices not yet paid at year end. f) Cash Cash comprises bank balances. g) Accounts payable These mainly relate to invoices for goods and services which were outstanding on the date of the closure of the fiscal year. These are recognized as liabilities for that specific fiscal year. h) Foreign currencies Transactions denominated in foreign currencies are translated to the Rwandan Franc at the rate of exchange issued by the National Bank of Rwanda (BNR) applicable for the dates of the transaction. At the balance sheet date, book balances denominated in foreign currencies are converted into Rwandan Francs at the exchange rate ruling on that date as issued by BNR. The associated exchange losses/gains are recorded as expenditure/ income in the books of account. i) Prior year adjustments Prior year adjustments consist of different adjustments made to consolidated report of prior year. 2. Fees, fines, penalties and licences Description 6 months to 12 months to 31 December 2019 30 June 2019 Frw Frw Fees, fines, penalties and licenses 1,415,272 Total 1,415,272