1972 Promoting Accountability of Public Resources AUDITOR GENERAL'S REPORT GFF Preparation Grant Financial Statements For the Fiscal period ended June 30, 2017 December 2017 Yusador S. Gaye, CPA, CGMA Auditor General, R. L. Auditor Generals Report on the Global Financing Facility Preparation Grant (GFF) Financial Statement For the fiscal period ended June 30, 2017 Table of Contents ACRONYMSUSED ............................................................................................................ 2 AUDITOR GENERAL'S REPOR ......................................................................................... 3 FINANCIAL STATEMENTS ................................................................................................ 5 1. IDA/ (World Bank) Fund ...............................................................................................ud.. 9 2. CONSULTING SERVICES ........................RS......0.......................VI.............. ..................... -...10 3.T RA IN IN G ................................................. .. ...... --..... -.. ............. . ............ 11 4. OPERATING COST........................................... . ....................................................12 Promoting Accountability of Public Resources 41 Auditor General's Report on the Global Financing Facility Preparation Grant (GFF) Financial Statements For the period July 1, 2016 to June 30, 2017 ACRONYMS USED Acronyms/Abbreviations/Symbol Meaning AFP Audit Focal Person AG Auditor General CGMA Chartered Global Management Accountant COSO Committee of Sponsoring Organization CPA Certified Public Accountant EPHS Essential Package Health Services FSs Financial Statements GoL Government of Liberia GFF Global Financing Facility IAU Internal Audit Unit IBRD International Bank for Reconstruction And Development IDA International Development Association IFRs Interim Financial Reports INTOSAI International Organization of Supreme Audit Institutions IPSASs International Public Sector Accounting Standards ISSAIs International Standards of Supreme Audit Institutions MOH Ministry of Health P'OFM Office of Financial Management PBF Performance Based Financing PCO Project Coordination Office PIM Project Implementation Manual QPR Quarterly Progress Report SOE Statement of Expenditures ToR Term of Reference Promoting Accountability of Public Resources Auditor Generas Report on the Global Financing Facilty Preparation Grant (GFF) Financal Statements For the period July 1, 2016 to June 30, 2017 AUDITOR GENERAL'S REPORT December 30, 2017 Dr. Bernice T. Dahn Minister Ministry of Health Republic of Liberia Dear Dr. Dahn: RE: Report on the Audit of the Global Financing Facility (GFF) Preparation Grant 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 and a summary of other accounting policies and 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 Global Financing Facility (GFF) Preparation Grant 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 other accounting policies and explanatory notes, Responsibilities of Global Financing Facility 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 Standards Cash Basis (IPSAS), and for such internal control as management determines is 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 Management Team ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the PMT or to cease operations, or has no realistic alternative but to do so. Those charged with governance are responsible for overseeing the PMT financial reporting process. 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. PromotIngAccountabilty of Public Resources Auditor Generafs Report on the Global Financing Facily Preparation Grant (GFF) Financial Statements For the period July 1, 2016 to June 30, 2017 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. Yusador S. Gaye, CPA, CGMA Auditor General, R.L. Monrovia, Liberia December 2017 ,TPromoting Accountability of Public Resources Auditor Generals Report on the Global Financing Faclity Preparation Grant (GFF) Financial Statements For the period July 1, 2016 to June 30, 2017 FINANCIAL STATEMENTS Global Financing Facility Preparation Grant (GFF) Statement of Receipts and Payments For the Fiscal Period ended June 30, 2017 Notes June 30, 2017 Receipts US$ IDA(World Bank) Fund 1 165,948 Other Receipts - - Total Receipts 165,948 Less Payment: Payment Consulting Service 2 66,611 Training 3 12,810 Operating Cost 4 84,938 Total payments 164,359 Decrease/ Increase in cash 1,589 Cash at the begging of the year - Cash at the end of the year 5 1,589 The notes on pages 7-13 are integral part of these financial statements Promoting A ccountability of Public R esources Auditor General's Report on the Global Finaning Faility Preparation Grant (GFF) Finandal Statements For the fiscal penod ended June 30, 2017 GFF Preparation Grant Statement of Comparison of Budget and Actual Amounts For the fiscal period ended June 30, 2017 6. Original Final Actual Variance Percentage Budget Budget Amounts Variance Cash Inflows US$ US$ US$ US$ (%) Authorized Allocations/Receipts 400,000 368,414 165,948 202,466 55 Total Receipts 400,000 368,414 165,948 202,466 - Cash Outflows Goods 29,069 29,069 - 29,069 100 Consulting Services 123,198 99,798 66,611 33,187 33 Training 15,000 15,000 12,810 2,190 15 Operating Costs 232,733 224,547 84,938 139,609 62 Total Payments 400,000 368,414 164,359 204,055 Net Cash Flows - - 1,589 Signed: Signed: Toagoe T. Karzon Matthew T. K. Flomo CONTROLLER Manager Office of Financial Management Project Implementation unit Ministry of Health Ministry of Health The notes on pages 7-13 are integral part of these financial statements Promoting Accountability of Public Resources Auditor Generals Report on the Global Financing Facility Preparation Grant (GFF) Financial Statement For the fiscal perod ended June 30, 2017 NOTES TO THE FINANCIAL STATEMENTS General Information and Accounting Policies: I. The Reporting Entity and Principal address Ministry of Health GFF Preparation Grant Congo Town, Monrovia Liberia II. Background of the Project In March, 2016 the Republic of Liberia and the International Bank for Reconstruction and Development/International Development Association ("World Bank') entered into a Grant Agreement as additional financing for the Health System Strengthening Project (HSSP) under the Ministry of Health. The development objective of the GFF Preparation Grant for Liberia is to support the preparation of the additional financing. The project consists of six main components as outline below: * Development of a fifteen (15) year Health financing strategy for the Recipient; * Preparation of an RMNCAH Investment Framework and an RMNCAH Investment Plan for the Recipient; * Development of a Civil Registration and Vital Statistics (CRVS) Investment Plan for the Recipient; * Support for baseline data collection for the monitoring and evaluation framework of the additional financing; and * Support for the hiring of additional staff to the PIU to support the preparation of the additional financing; * Support for preparation of a project implementation manual for the additional financing In view of the above, the International Development Association ("World Bank") provided a grant of US$400,000.00 referenced TF-0A1167 to the Global Financing Facility in support of Every Woman Every Child as Liberia GFF preparation grant for the additional financing for the Health System Strengthening Project for Goods, Non-Consulting Services, Consultants' Services, Operating Cost and Training under the project. Promoting Accountability of Public Resources Auditor Generals Report on the Global Financing Facility Preparation Grant (GFF) Fnancal Statements For the period July 1, 2016 to June 30, 2017 III. Significant Accounting Policies The financial statements have been prepared in accordance with the Cash Basis International Public Sector Accounting Standards (IPSAS). This implies that all expenditures are expensed whether they are revenue or capital in nature and income is recognized when funds are received from the IDA/ADB (World Bank). IV. Reporting Currency Financial reports have been presented in United States Dollars. Transactions in other currencies are translated in United States Dollars and recorded at the rate of exchange ruling at the date of the transaction(s). Balances in other currencies are translated into United States Dollars at the rate of exchange prevailing on the reporting date. V. Reporting Period The reporting period for the GFF financial statements is the fiscal period ended June 30, 2017. F Promotifng Accountability of Public Resources Auditor Generals Report on the Global Financing Facility Preparatron Grant (GFF) Financial Statement For the period July 1, 2016 to June 30, 2017 GFF PREPARATION GRANT For the Fiscal Period ended June 30, 2017 1. IDA/ (World Bank) Fund Receipt June 30, 2017 US$ December 12,2016 100,000 March 30,2017 23,904 April 19,2017 11,746 May 23,2017 30,298 Total 165,948 Promoting Accountability of Public Resources Auditor Generals Report on the Global Financing Facility Preparation Grant (GFF) Financial Statements For the period July 1, 2016 to June 30, 2017 GFF PREPARATION GRANT For the Fiscal Period ended June 30, 2017 June 30, 2017 2. CONSULTING SERVICES US$ Preparation of RMNCAH Investment plan Foreign Consultant 45,875 Residential Allow. Foreign Con. 6,000 Means of Travel- Foreign consultant 2,500 Telecommunication, internet & 380 postage Taxes and Duties- Foreign consultant 5,850 Development of CRV'S investment 5,405 case Local Consultant Taxes & Duties- Local Consultant 601 TOTAL 66,611 -7 Promoting Accountability of Public Resources 4 Auditor Generalrs Report on the Global Financing Faility Preparation Grant (GFF) Financial Statements- For the penod July 1, 2016 to June 30, 2017 GFF PREPARATION GRANT For the Fiscal Period ended June 30, 2017 3.TRAINING June 30, 2017 Strengthening Institutional Capacity US$ Staff Training Fees-Foreign 11,000 Foreign Travel-Daily subsistence Allowance 1,810 TOTAL 12810 Promoting Accountability of Public Resources Auditor Generals Report on the Global financing Facility reparation Grant (GFF) Financial Statements For the penod July 1, 2016 to June 30, 2017 GFF PREPARATION GRANT For the Fiscal Period ended June 30, 2017 4. OPERATING COST Preparation of RMNCAH Investment June 30, Plan 2017 US$ Telecommunication, Internet & 179 Postage Foreign Travel-DSA 2,186 Domestic Trave-DSAl 31,651 Food & Catering Services 7,200 Other Rental & Lease 1,050 Printing, Binding & Publication 6,000 Vehicle Fuel & Maintenance 3,450 Baseline Data Collection for Monitoring & Evaluation Domestic Travel- DSA 14,442 Food & Catering Services 8,177 Vehicle Fuel & Maintenance 1,995 Support to Hiring of additional Staff to PIU and Operation Vehicle Fuel & maintenance 2,378 Foreign Travel-Means of Travel 1,696 Telecommunication, Internet & postage 2,220 Domestic Travel-DSA 2,089 Bank Charges 225 TOTAL 84,938 Promoting Accountability of Public Resources Auditor General's Report on the Global Financng Facility Preparabon Grant (GFF) Financial Statements For the period July 1, 2016 to June 30, 2017 Note 5 Cash at the end of the year The total amount of US$1,589 is reported as cash in bank and cash on hand (cash balance) Note 6 variance The variance of 55% represents budget balance of cash receipts intended for expenditure activities to be undertaken by the project. The amount was due to the delay in some of the project activities. The 100% variance for goods is due to the delay in the procurement of office equipment and furniture for implementing department within the Ministry of Health. The 33% variance represents unspent amount allocated for consulting services. This is due to outstanding payments for some consultants. The 62% variance for the operation cost is attributed to the postponement of some project activities especially the RMNCAH activities. Promoting Accountability of Public Resources