AUDITOR GENERAL'S REPORT
On The Closeout Audit of the
Integrated Public Financial
Management Reform Project
(IPFMRP)
For the Period June 2016 to
July 2017
December, 2017
Yusador S. Gaye, CPA, CGMA
Auditor General, R.L.
Auditor General’s Report On The
Audit of the Integrated Public Financial Management Reform Project (IPFMRP)
For the Period June 2016 to July 2017
Table of Contents
Report on the Audit of the IPFMRP Financial Statements ............................................................. 3
Statements of Receipts and Payments for the Year Ended June 30, 2017...................................... 5
PROJECT DESIGNATED ACCOUNT STATEMENT .......................................................................... 6
Statement of Fund Balance and Cash Status for the Year Ended June 30, 2017 ............................. 7
Statement of Comparison of Budget and Actual Amounts for the Fiscal Year Ended June 30, 2017 .. 8
NOTES TO THE FINANCIAL STATEMENTS....................................................................... 10
1. Background and Information of the Project ....................................................................................... 10
2. Use of Grant Proceeds............................................................................................................................ 10
3. Significant Accounting Policies .............................................................................................................. 11
4 Grant .......................................................................................................................................................... 11
5. Budget Planning Systems, Coverage and Credibility ......................................................................... 12
6. PFM Legal Framwork, Budget Execution, Accounting and Reporting ............................................. 12
7. Revenue Mobilization and Administration ........................................................................................... 12
8. Transparency and Accountability .......................................................................................................... 12
11. Cash paid ............................................................................................................................................... 13
2 Promoting Accountability of Public Resources
Auditor General’s Report On The
Audit of the Integrated Public Financial Management Reform Project (IPFMRP)
for the Period June 2016 to July 2017
December 30, 2017
Christopher Sokpor, PhD
Unit Manager
Integrated Public Financial Management Reform Project (IPFMRP)
Monrovia, Liberia
Dear Dr. Sokpor:
RE: Report on the Audit of the IPFMRP Financial Statements
Opinion
In our opinion, the accompanying financial statements present fairly, in all material respects, the
Statement of Receipts and Payments, Statement of Comparison of Budget and Actual Amounts, the
Designated Account and a summary of accounting policies and other explanatory notes for the fiscal
period then ended in accordance with International Public Sector Accounting Standards (IPSAS)
Cash Basis of Accounting.
We have audited the accompanying financial statements of the Integrated Public Financial
Management Reform Project (IPFMRP) as at June 30, 2017, which comprise the Statement of
Receipts and Payments, Statement of Comparison of Budget and Actual Amounts and a summary of
accounting policies and other explanatory notes.
Basis for Opinion
We conducted our audit in accordance with International Standard of Supreme Audit Institutions
(ISSAIs).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 the Ministry of Finance and Development Planning (MFDP) in accordance with the International
Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants (IESBA Code)
together with the ethical requirements that are relevant to our audit of the financial statements and
we have fulfilled our other ethical responsibilities in accordance with these requirements and the
IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our opinion.
Responsibilities of the IPFMRP Management for the financial statements
Management is responsible for the preparation and fair presentation of the financial statements in
accordance with International Public Sector Accounting Standard Cash Basis (IPSAS), and for such
internal control as management determines 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, management is responsible for assessing the Project ability to
continue as a going concern, disclosing, as applicable, matters related to the going concern and
3 Promoting Accountability of Public Resources
Auditor General’s Report On The
Audit of the Integrated Public Financial Management Reform Project (IPFMRP)
for the Period June 2016 to July 2017
using the going concern basis of accounting unless management either intends to liquidate the
project or to cease operations, or has no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Statements
The objectives of our audit are 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 our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted
in accordance with the International Standard of Supreme Audit Institutions (ISSAIs) 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.
Monrovia, Liberia
December 2017
4 Promoting Accountability of Public Resources
Auditor General’s Report On The
Audit of the Integrated Public Financial Management Reform Project (IPFMRP)
for the Period June 2016 to July 2017
Statements of Receipts and
Payments for the Year Ended June
30, 2017
In United States Dollars Notes 2017 2016
Receipts
Total Grant 4 4,450,000 5,907,878
Other Income- Sale of Bid 17,950 __
documents
Total Receipt 4,467,950 5,907,878
Payment
Budget Planning Systems, Coverage 5 143,790 175,735
and Credibility
PFM Legal Framework, Budget Ex., 6 1,246,002 2,150,393
Acct & Reporting
Revenue Mobilization and 7 214,363 873,470
Administration
Transparency and Accountability 8 777,224 1,545,326
Program Governance and Project 9 1,354,080 1,819,997
Management
Total Payment 3,735,459 6, 564,921
Excess of Payments over 732,491 (657,043.00)
Receipts
Fund Balance as at July 1, 620,134
(36,909.00)
Cumulative Fund Balance 695,582 (36,909.00)
The notes on pages 10 to 14 are integral part of these Project Financial report.
5 Promoting Accountability of Public Resources
Auditor General’s Report On The
Audit of the Integrated Public Financial Management Reform Project (IPFMRP)
for the Period June 2016 to July 2017
PROJECT DESIGNATED ACCOUNT STATEMENT
Account Number 02/205/300001/68
Account Type Current Account
Depository Bank Central Bank of Liberia
Address Warren Street Monrovia, Liberia
Related Grant Agreement IPFMRP Grant No: TF 12690, TF A2366, IDA
50260 & AfDB 5900155003751
Currency : United States Dollar
In United States Dollars
2017 2016
Total Grant Received 4,450,000 5,907,878
Other Income Sale of Bid Documents 17,950
Total grant income reported 4,467,950 5,907,878
Amount spent (3,735,459) (6,564,921)
Balance as at July 1 (36,909) 620,134
Balance as at June 30 695,582 (36,909)
6 Promoting Accountability of Public Resources
Auditor General’s Report On The
Audit of the Integrated Public Financial Management Reform Project (IPFMRP)
for the Period June 2016 to July 2017
Statement of Fund Balance and Cash Status for the
Year Ended June 30, 2017
Notes 2017 2016
In United States Dollars
A. FUND BALANCE
Balance of Project Fund b/f (36,909) 620,134
Add: Total Receipts during the period 4,467, 950 5,907,878
Total fund available for operations 4,431,041 6,528,012
Less: Total payments during the period 3,735,459 6,564,921
Balance of project funds at the end of the year 695,582 (36,909)
B. CASH STATUS:
Cash at bank 695,582 (36,909)
Total cash on hand and in bank 695,582 (36,909)
Difference between A and B
The notes on pages 10 to 14 are integral part of these Project Financial report.
7 Promoting Accountability of Public Resources
Auditor General’s Report On The
Audit of the Integrated Public Financial Management Reform Project (IPFMRP)
for the Period June 2016 to July 2017
Statement of Comparison of Budget and Actual Amounts for the Fiscal Year Ended June 30, 2017
Uses of funds, by Activity Project Annual Actual Variance
within Component Allocation Budget
$ $ $ $
Component 1: Enhancing Budget 1,838,000.00 143,000.00 143,790.42 (790.42) 1%
Planning System, Coverage and
Credibility
Component 2: Strengthening PFM 9,581,830.77 1,250,500.00 1,246,001.85 4,498.15 0%
Legal Framework, Budget
Execution, Accounting and
Reporting
Component 3: Revenue 5,849,294.50 221,000.00 214,363.00 6,637.00 3%
Mobilization and Administration
Component 4: Enhancing 6,406,285.00 799,000.00 777,223.77 21,776.23 3%
Transparency and Accountability
Component 5: Program 7,425,589.73 1,378,000.00 1,354,080.07 23,919.93 2%
Governance and Project
Management
Grand Total 31,101,000.00 3,791,500.00 3,735,459.11 56,040.89 1%
Note: the marginal variance noted above were due to normal estimations error between budgeted amounts
and actual projections -for which related costs cleared
The notes on pages 10 to 14 are integral part of these Project Financial reports.
8 Promoting Accountability of Public Resources
Auditor General’s Report On The
Audit of the Integrated Public Financial Management Reform Project (IPFMRP)
for the Period June 2016 to July 2017
STATEMENT OF FINANCIAL POSITION AS AT JUNE 30, 2017
In United States Dollars Notes 2017 2016
Assets
Cash and cash equivalent 695,582 (36,909)
Total Assets 669,582 (36,909)
Fund Balance
Grants 695, 582 (36,909)
Accumulated Fund Balance 695, 582 (36,909)
The notes on pages 10 to 14 are integral part of these Project Financial reports.
9 Promoting Accountability of Public Resources
Auditor General’s Report On The
Audit of the Integrated Public Financial Management Reform Project (IPFMRP)
for the Period June 2016 to July 2017
NOTES TO THE FINANCIAL STATEMENTS
1. Background and Information of the Project
With support from the International Development Association, MTDF, and AfDB; the IPFMR-project
is to strengthen the foundation of the overall PFM governance, ranging from planning, budgeting,
accounting and reporting, internal audit and controls, public procurement, and revenue
management, to external audit and legislative and public oversight. The IPFMR project was
approved by the World Bank on December 11, 2011 and other Partners with a grant amount of USD
28.551 Million. The aim of the project is
i. Improvement in the efficiency and reliability of the Government’s accounting system;
ii. Harmonize the project chart of accounts with the GoL chart of accounts;
iii. Finalize the business processes for projects in IPFMR project;
iv. Configure the IPFMR project; and
v. Conduct testing
2. Use of Grant Proceeds
The table sets out the categories of items to be financed out of the grant proceeds, the allocation of the
amount of the grant to each category and the percentage of expenditure for items to be financed in each
category:
Category Amount of grant % of
allocated expenditure
expressed in to be
USD financed
Budget Planning System, Coverage and 1,838,000.00 100
Credibility
PFM Legal framework, Budget Ex., Acct & 9,581,831.00 100
Reporting
Revenue Mobilization and Administration 5,849,294.00 100
Transparency and Accountability 6,406,285.00 100
Program Governance and Project Management 7,425,590.00
Total 31,101,000.00
10 Promoting Accountability of Public Resources
Auditor General’s Report On The
Audit of the Integrated Public Financial Management Reform Project (IPFMRP)
for the Period June 2016 to July 2017
All categories of expenditure shown in these financial statements are fully financed based on the
percentage below:
% of Expenditure
IDA grant 18
MDTF 66
AfDB 16
Total 100
3. Significant Accounting Policies
Basis of accounting
The financial statements have been prepared in accordance with the Cash Basis International Public
Sector Accounting Standards (IPSAS) and in the manner required by the Project Grant Agreement
as required by the World Bank’s Operating Policies and Procedures and PFMU’s Financial
Management manual. This implies that all expenditures are expensed whether they are revenue or
capital in nature and income is recognized when funds are received from the World Bank.
Reporting currency
Financial reports have been presented in United States Dollars. Transactions denominated in other
currencies are translated into United States Dollars and recorded at the rate of exchange ruling at
the date of transactions. Balances denominated in other currencies are translated into United States
Dollars at the rate of exchange prevailing on the reporting date.
4 Grant
Grant from IPFMRP is held in deferred income account when received and are only recognized in
the project’s income statement when utilized.
Grant Receipt
30 June 30 June
2017 2016
IPFMRP/MOF012-TF – 12690 2,935,259
IPFMRP/MOF016-TF -12690 704,482
IPFMRP/MOF 005-TF AfDB 1,268,137
IPFMRP/MOF 009-TF 12690 1,900,000
IPFMRP/MOF 001-TF A2366 2,550,000
4,450,000 5,907,878
11 Promoting Accountability of Public Resources
Auditor General’s Report On The
Audit of the Integrated Public Financial Management Reform Project (IPFMRP)
for the Period June 2016 to July 2017
NOTES TO THE FINANCIAL STATEMENT
(Continued)
In United States Dollars
5. Budget Planning Systems, Coverage and Credibility
30-Jun 30-June
2017 2016
Fiscal Reporting and Fiscal policy review
Fiscal Budget Framework 101,575 89,582
42,215 86,153
143,790 175,735
6. PFM Legal Framwork, Budget Execution, Accounting and
Reporting
SIFMIS Rollout to M& As 1,116,698 1,655,546
Strengthening Financial Standards, Accounting and Reporting 32,200 -
Treasury, Cash, Debt and Aid Management 8,054 154,238
Establishment of County Treasuries 28, 959 264,357
Donot Project Financial Management/Use of Country System 60,091 76,252
1,246,002 2,150,393
7. Revenue Mobilization and Administration
Tax Automation (SIGTAS) 92,500 227,484
Establishment of Revenue Authority 121,863 645,986
214,363 645,986
8. Transparency and Accountability
Srengthening Public Procurement Oversight 19,870 196,506
Strengthening Internal Audit and Control 111,031 343,972
Strengthening External Audit 261,381 528,984
Enhancing Legislative Oversight 17,995 265,564
Civil Society and Social Accountability 366,947 210,300
777,224 1,545,326
12 Promoting Accountability of Public Resources
Auditor General’s Report On The
Audit of the Integrated Public Financial Management Reform Project (IPFMRP)
for the Period June 2016 to July 2017
9. Program Governance and Project Management
In United States Dollars
Program Coordination and Financial Management 491,560 331,447
Institutional and Capacity Building 615,801 1,167,804
Monitoring and Evaluation/ Change Management 68,900 83,276
Project Fiduciary 177,819 237,470
1,354,080 1,819,997
10. Cash receipts through grant and other Sources
MDTF 4,450,000 4,639,741
sale of bid documents 17,950 1,268,137
4,467,950 5,907,878
11. Cash paid
Budget Planning Systems, Coverage and Credibility 143,790 175,735
PFM Legal Framework, Budget Ex., Acct & Reporting 1,246,002 2,150,393
Revenue Bobilization and Administration 214,363 873,470
Transparency and Accountability 777,224 1,545,326
Program Governance and Project Management 1,354,080 1,819,997
Total Payment 3,735,459 6,564,921
13 Promoting Accountability of Public Resources
Auditor General’s Report On The
Audit of the Integrated Public Financial Management Reform Project (IPFMRP)
for the Period June 2016 to July 2017
NOTES TO THE FINANCIAL STATEMENT (Continued)
12. Analysis Variance
Uses of funds, by Activity within Component Project Annual Actual Variance
Component 1: Enhancing Budget Planning Systems, Allocation Budget
Coverage and Credibility
$ $ $ $
Enhanced Macro-Financial Framework 355,000.00 0.00 0.00 0.00
Financial Reporting and Fiscal Policy 292,000.00 101,000.00 101,575.00 -575.00
Review
Enhanced Budget Framework 1,191,000.00 42,000.00 42,215.42 -215.42
Sub- Total 1,838,000.00 143,000.00 143,790.42 (790.42)
Component 2: Strengthening PFM Legal Framework,
Budget Execution, Accountability and Reporting
Review of PFM Legal Framework 50,000.00 0.00 0.00 0.00
SIFMIS Rollout to Me-As 8,114,350.77 1,121,000.00 1,116,697.65 4,302.35
Strengthening Financial Standards, Accounting and Reporting 32,500.00 32,500.00 32,200.00 300.00
Treasuary Cash, Debt and Aid Management 34,480.00 8,000.00 8,054.00 -54.00
Establishment of County Treasuries 494,000.00 29,000.00 28,959.20 40.80
Donor Project Financial Management/ Use of County 856,500.00 60,000.00 60,091.00 -91.00
System
Sub- Total 9,581,830.77 1,250,500.00 1,246,001.85 4,498.15
Component 3: Revenue Momilization And Administration
Capacity Development of Customs 200,000.00 0.00 0.00 0.00
Tax Automation (SIGTAS) 2,000,000.00 100,000.00 92,500.00 7,500.00
Establishment of Revenue Authority 3,649,294.50 121,000.00 121,863.00 -863.00
Sub- Total 5,849,294.50 221,000.00 214,363.00 6,637.00
Component 4: Enhancing Transparency and Accountability
Strengthening Public Procurement Oversight 313,000.00 20,000.00 19,869.70 130.30
Strengthening Internal Audit and control 1,567,609.00 111,000.00 111,030.96 -30.96
Strengthening External Audit 3,259,398.00 270,000.00 261,380.96 8,619.04
Enhancing legislative Oversight 630,000.00 18,000.00 17,995.00 5.00
Civil Society and Sosial Accountability 636,278.00 380,000.00 366,947.15 13,052.85
Sub-Total 6,406,285.00 799,000.00 777,223.77 21,776.23
Coponent 5: Program Governance and Project
Management
Program Coordination & Financial Management 1,782,051.73 500,000.00 491,560.07 8,439.93
Institutional and Capacity Building 4,192,088.00 630,000.00 615,801.00 14,199.00
Monitoring & Evaluating Change Management 489,500.00 68,000.00 68,900.00 -900.00
Project Fiducialry 961,950.00 180,000.00 177,819.00 2,181.00
Sub- Total 7,425,589.73 1,378,000.00 1,354,080.07 23,919.93
Grand Total 31,101,000.00 3,791,500.00 3,735,459.11 56,040.89
Note: the marginal variance noted abovewere due to normal estimations error between budgeted amounts and actual projections -forwhich related costs
cleared
14 Promoting Accountability of Public Resources