BORNO STATE PRIMARY HEALTH CARE DEVELOPMENT AGENCY ADDITIONAL FINANCING NIGERIA STATE HEALTH INVESTMENT PROJECT (AF- NSHIP) WORLD BANK ASSISTED PROJECT IDA NO.58510/TF2594 BORNO STATE AUDITED FINANCIAL STATEMENTS ST FOR THE YEARE ENDED 31 DECEMBER 2020 Solanke & Sulaimanu (J-HA RTERED A'C(1UNT47NTS) BORNO STATE PRIMARY HEALTH CARE DEVELOPMENT AGENCY ADDITIONAL FINANCING NIGERIA STATE HEALTH INVESTMENT PROJECT (AF- NSHIP) WORLD BANK ASSISTED PROJECT IDA NO.58510/TF2594 BORNO STATE AUDITED FINANCIAL STATEMENTS FOR THE YEARE ENDED 31sDECEMBER, 2020 TABLE OF CONTENTS CONTENT PAGE CORPORATE INFORMATION ... REPORT OF THE AUDITORS ... ... STATEMENT OF ACCOUNTING POLICIES 5 FINANCIAL POSITION 6 RECEIPTS AND PAYMENTS STATEMENT... 7 CASH FLOW STATEMENT 8 SPECIAL ACCOUNT RECONCILIATION STATEMENT .. 9 NOTES TO THE ACCOUNTS ... ... ... 10 BORNO STATE PRIMARY HEALTH CARE DEVELOPMENT AGENCY ADDITIONAL FINANCING NIGERIA STETE HEALTH INVESTMENT PROJECT (AF NSHIP) WORLD BANK ASSISSTED PROJECT IDA NO.58510/TF2594 BORNO STATE CORPORATE INFORMATION PRINCIPAL OFFICERS DR SULE MELE Executive Director MRS. HABIBA SAIDU State Project Coordinator BABA BURA USMAN Head of Project Financial Management Unit: ALHAJI MODU KOLO Project Accountant 'BULAMA ALI MULIMA Procurement Officer YERWAMA M. THANI Monitoring & Evaluation Officer ADAMU ILIYA MIRINGA Internal Auditor BORNO AF- NSHIP COORDINATION OFFICE No. I Damboa Road Maiduguri. IDA Credit: 58510/TF2594 PROJECT FINANC4L MA NAGEMENT UNIT: Office of the Accountant General Musa Usman Secretariat, Maiduguri. AUDITORS: Solanke & SulainmLanu (Chartered Accountants)., 20, Shehu Laminu Way NSITF Building, Opposite General Hospital, P. 0. Box 1573, Maiduguri. Tel: 08055511124,08034334122 BANKER: Guaranty Trust Bank Plc. 2 Solanke & Sulaimanu (CHARTERED ACCOUNTANTS) 20, Sheh Landint My, NSTIF Ba lding, Opp, State Specialist Hospital, PO, Box 1573, 1h1iiugurt TW: 08034334122, 08055511/24 -ail?: mbhdayin@agtni coin, solaaA-esultaintana@whalioocoaAk AUDITORS' REPORT ON THE FINANCIAL STATEMENTS OF THE BORNO STATE PRIMARY HEALTH CARE DEVELOPMENT AGENCY ADDITIONAL FINANCING NIGERIA STATE HEALTH INVESTMENT PROJECT (AF NSHIP) WORLD BANK ASSISTED PROJECT IDA NO.58510/TF2594 BORNO STATE FOR THE YEAR ENDED 31' DECEMBER, 2020 We have audited the accompanying financial statements of Borno State Primary Health Care Development Agency Additional Financing Nigeria State Health Investment Project, Borno State for the year ended 31" December. 2020 set out on pages 6 to 9. which have been prepared on the basis of accounting policies set out on page 5. The project is financed by the International Development Association (IDA) credit number 5851 0/TF2594. Respective responsibilities of the Project Management and Auditors: The State AF-NSHIP co-ordinates the activities of the programme and as such responsible for the preparation of these financial statements. Our responsibility as auditors is to express an independent opinion, based on our audit of these financial statements. Bases of opinion: We conducted our audit in accordance with International Standards on Auditing and World Bank guidelines. These standards and guidelines require that we plan and perform the audit to obtain reasonable assurance that the financial statements are free from material misstatement. An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements. It also includes an assessment of the significant estimate and judgements made by the project officers in the preparation of the financial statements, and whether the accounting policies are appropriate to the project circumstances, consistently applied and adequately disclosed. We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide us with sufficient evidence to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or other irregularities or errors. In forming our opinion, we also evaluated the overall adequacy of the presentation of information in the financial statements. !\ii-i'1oiect 1Plan AMe rak S2i -Cpc -, 11 Stwel. ot Wo "hau ka i wAv R I fioN %b,r-iuj I! (oB :- )i BAY7VO 47 N.Ii4 43'24(,4f Opinion: The financial statements, drawn up in conformity with generally accepted accounting principles and the accounting standards issued to date by the Nigerian Accounting Standards Board are in agreement with the books of account, which in our opinion have been properly kept. We have obtained all the information and explanations we required for the purpose of our audit. In our opinion, these financial statements give a true and fair view of the financial position of the Project, and of the Cash Flow Statement for the year ended 3lst December, 2020. The Statements of Expenditure are in agreement with the books of accounts and adequate supporting documents have been maintained to support claims to the World Bank for reimbursement of expenditures incurred and which expenditures are eligible for funding under the credit agreement. The Statement of Special Account (SA) of the project on page 9 have been prepared on the basis of cash deposits and withdrawals for the purpose of complying with the credit agreement and give a true and fair view of the beginning and ending balances and the account activities for the year ended 3 1 December, 2020. 2021 CA_ ___ ___ Maiduguri; Nigeria SOLANKE & SULA4MANU (CHARTERED ACCOUNTANTS) Engagement Partner: Odedoyin Musibau FRC/2013/ICAN/00000004651 3G ICAN 087813 4 BORNO STATE PRIMARY HEALTH CARE DEVELOPMENT AGENCY ADDITIONAL FINANCING NIGERIA STATE HEALTH INVESTMENT PROJECT (AF NSHIP) WORLD BANK ASSISTED PROJECT IDA NO.58510/TF2594 BORNO STATE STATEMENT OF ACCOUNTING POLICIES FOR THE YEAR ENDED 31s-TDECEMBER, 2020 1. ACCOUNTING CONVENTION: The accounts are prepared under historical cost convention. 2. BASES OF ACCOUNTING: The cash basis is adopted in the preparation of the financial statements. 3. FIXED ASSETS & DEPRECIATION: Assets that are intended for use over a period exceeding one accounting year and whose value per unit is not below =N=100,000 are capitalised, while those below =N=1 00,000 per unit are classified as special project assets. No depreciation is charged on these assets. 4. INVENTORY: Store itens are valued at cost. 5i FOREIGN CURRENCY: Receipt and expenditure items in foreign currency are converted to the Naira at the rates ruling at the transaction dates. Assets and liabilities expressed in foreign currencies are converted to the Naira at the rate ruling at the balance sheet date and gains or losses on such conversions are credited or charged to reserve in the period that they arise. 6. The Project commenced activities from May, 2017. 5 BORNO STATE PRIMARY HEALTH CARE DEVELOPMENT AGENCY ADDITIONAL FINANCING NIGERIA STATE HEALTH INVESTMENT PROJECT (AF NSHIP) WORLD BANK ASSISTED PROJECT IDA NO.58510/TF2594 STATEMENT OF FINANCIAL POSITION AS AT 31ST DECEMBER, 2020 2019 1 Notes 2020 2020 ACTUAL ACTUAL CUMULATIVE =N= = N- =N= NON-CURRENT ASSETS: 57,532,105 Property, Plant & Equipment 1 349,430,493 596,972,072 1.458,672,650 Strengthening Service Delivery 2 3,257,564,422 5,603,875,805 351,203,966 Capacity Building 3 30,681,367 492,063,745 295,000 Monitoring & Evaluation 4 30,349,176 35,626,626 36,965,653 System Strengthening 5 6,664,122 72,442,510 162,248.937 Operations & Information Costs 6 141,670,606 359,493,478 2,066,918,311 3,816,360,186 7,160,474,236 CURRENT ASSETS 0 Stock of goods and equipment 7.1 0 1,060,700 (1,760,423,410) Cash and bank balances 7.2 (1,915,286,904) 328,401,670 306,494,901 1,901,073,282 7,489,936,606 FINANCED BY 297,938,802 Funds Balances 8 1,755,016,465 6,993,088,315 8,556,099 Other incomes 9 146,056,817 496,848,291 306,494,901 1,901,073,282 7,489,936,606 SIGNED ON BEHALF OF THE PROJECT MANAGEMENT BY: ) STATE PROJECT COORDINATOR STATE PROJECT ACCOUNTANT 6 BORNO STATE PRIMARY HEALTH CARE DEVELOPMENT AGENCY ADDITIONAL FINANCING NIGERIA STATE HEALTH INVESTMENT PROJECT (AF- NSHIP) WORLD BANK ASSISTED PROJECT IDA NO.58510/TF2594 BORNO STATE STATEMENT OF RECEIPTS AND PAYMENTS FOR THE YEAR ENDED 31ST DECEMBER, 2020 2019 2020 2020 ACTUAL ACTUAL CUMULATIVE RECEIPTS: 297,938802 IDA funds 1,755,016,465 6,931,488,315 Counterpart funds: 0 Borno State SOML fund 0 61,600,000 1 Others: 8,556,099 Sundry income (Note 9) 146,056,817 496,848,291 306,494,901 1,901,073,282 7,489,936,606 PAYMENTS: 57.532,105 Property, Plant & Equipment 349,430,493 596,972,072 1,458,672,650 Strengthening Service Delivery 3,257,564,422 5,603,875,805 351,203,966 Capacity Building 30,681,367 492,063,745 295,000 Monitoring & Evaluation 30,349,176 35,626,626 36,965.653 System Strengthening 6,664,122 72,442,510 162,248,937 Operations & Information Costs 141,670,606 360,554,178 2,066,918,311 3,816,360,186 7,161,534,936 (1,760,423,410) (1,915,286,904) 328,401,670 4.004,111.984 Opening balance b/f 2,243,688,574 2,243,688,574 Balance as at Dec 328,401,670 Represented by Bank balances 778,101,474 GT- Bank Plc : Special account 318,268,240 CT- Bank Plc: Draw down 1,465,242,395 account 3,250,668 15,444 GT1'- Bank Plc: Naira interest 329,261 GT- Bank Plc: Dollar interest 5,632,762 GT- Bank Plc: Escrow aect for - audit fee 1,250,000 2,243,688,574 Balance as at 3 Dec 328,401,670 7 BORNO STATE PRIMARY HEALTH CARE DEVELOPMENT AGENCY ADDITIONAL FINANCING NIGERIA STATE HEALTH INVESTMENT PROJECT (AF NSHIP) WORLD BANK ASSISTED PROJECT IDA NO.585101TF2594 BORNO STATE CASH FLOW STATEMENT FOR THE YEAR ENDED 31sT DECEMBER, 2020 2020 2019 =N= =N= =N= =N= Cash flow from operations: Sundry income 146,056,817 8,556,099 Cash flow fron operating activities 146,056,817 8,556,099 cash flow from financinL activities: World Bank Special account, IDA 1,755,016,465 297,938,802 funding ------------------ 1,901,073,282 --------------- 306.494,901 1,901,073,282 306,494,901 Cash flow from development activities; Property, Plant & Equipment (349,430,493) (57,532,105) Strengthening Service Delivery (3,257,564,422) (1,458,672,650) Capacity Building (30,681,367) (351,203,966) Monitoring & Evaluation (30,349,176) (295,000) System Strengthening (6,664,122) (36,965,653) Operations & Information Costs (141,670,606) (3,816,360,186) (162,248,937) (2,066,918.311) Net cash flow fbr the year (1,915,286,904) (1,760,423,410) Cash equivalent at the beginning 2,243,688,574 4,004,11 1,984 Cash equivalent at the end. 328,401,670 2,243,688,574 Closinz Bank balances as at 31"Dee: GT- Bank Plc: Draw down account 3,250,668 1,465,242395 GT- Bank Plc: Special account 318,268,240 778,101,474 GT- Bank Plc: Naira interest acet 0 15,444 CT- Bank Plc: Dollar interest acct 5,632,762 329,261 CT- Bank Plc: Escrow acet for audit fee 1,250,000 0 Total 328,401,670 2,243,688,574 8 BORNO STATE PRIMARY HEALTH CARE DEVELOPMENT AGENCY ADDITIONAL FINANCING NIGERIA STATE HEALTH INVESTMENT PROJECT (AF NSHIP) WORLD BANK ASSISTED PROJECT IDA NO.58510/TF2594 BORNO STATE SPECIAL ACCOUNT RECONCILIATION STATEMENT FOR THE YEAR ENDED 31 DECEMBER, 2020 2020 -2019 US$ =N= USS =N= Balance as at January 4,070,118 1,465,242,393 11,137,203 3,998,255.748 Disbursement to Special 4,818,700 1,755,016,465 829,186 297,938.802 account Available funds 8,888,818 3,220,258,858 11,966,389 4,296,194,550 Less project withdrawals (8,023,023) (3,035.526,424) (7,900,625) (2,839,087,343) Less transferred to IDA acct (30,627) (11,638,264) 835,168 173,094,190 4,065,764 1,457,107.207 Add interest 2,380 893,039 4,368 1,568.002 837,548 173,987,229 4,070,132 1,458,675,209 Less bank charges - - (14) (4,987) 837,548 173,987,229 4,070,118 1,458,670.222 Exchange gain/(loss) 144,281,011 6,572,171 Balance as at 31" Dec. 837,548 318,268,240 4,070,118 1,465,242,393 Note: Opening rate used =N=360 Closing rate used =N=380 9 BORNO STATE PRIMARY HEALTH CARE DEVELOPMENT AGENCY ADDITIONAL FINANCING NIGERIA STATE HEALTH INVESTMENT PROJECT (AF NSHIP) WORLD BANK ASSISTED PROJECT IDA NO.58510/TF2594 BORNO STATE NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31t DECEMBER, 2020 1. NON CURRENT ASSETS: Cumulative to Year to 31st 2019 31st December, December, 2020 =N= 2020 =N= =N= 1.1 Property, Plant and Equipment Motor vehicles 109,966,734 - 40,497,734 Computers Accessories 1 1,693,550 - 0 Ambulances 453,138493 348,6 18493 Plant(Generator) 4,326,924 0 0 Procurement of Furniture 9,388.018 812,000 8,576,018 Renovation of office 8.458.353 0 8A58353 596JZ721.0Z " 3Al.4! 935_2 2. Strengtliening Service Delivery Quarterly performance to 2 pilot and scale-up LGAs PHCD 1,134,932,939 1, 108,613.946 19,364,771 Investment units to the PHCs & scale up LGAs and GHs 30,800.000 0 0 Payment of investment units to PHCs & other scale- up LGAs 501,637500 274.762,500 Investment units to the GHs in the scale up LGAs 68,350793 58600793 0 Payment of quarterly performance framework to HMB 21,183722 9.306,025 2,661,078 Payment of quarterly subsidies to 3 GH in the pilot LGAs 755,087,840 221,204,841 Quarterly subsidy to GHs in scale up LGAs 263,665,012 263,665,012 0 Quarterly subsidies to HFs in the pilot and scale-up LGA 2,795,986.313 1,300.746,090 927.993,850 Quarterly subsidies to 181 HFs in the scale up LGAs 0 0 0 Payment of Performance framework to SPHCDA 17,984.367 12,685,610 Baseline quantity and mapping of additional health facilities 7,421,989 0 0 Baseline quality assessment of additional health facilities 6.825.330 0 0 10 03.8258Q5 3.257564.422 1.47145 10 BORNO STATE PRIMARY HEALTHCARE DEVELOPMENT AGENCY ADDITIONAL FINANCING NIGERIA STATE HEALTH INVESTMENT PROJECT (AF-NSHIP) (WORLD BANK ASSISTED PROJECT IDA NO. 58510/TF2594) NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31sT DECEMBER, 2020 3. Capacity Building Cumulative Year to 31st December to 31st December, December, 2020 2020 =N= 2019 =N= =N= Training of HF Managers, GH managers and WDCs on PBF principles in 12 LGAs 141,569964 15,539,020 44,061,498 Training of 362 HF staff from 181 PHCs in 12 scale up LGAs on Financial Management and 78,178,694 5,400,832 72,777.862 indices tool use External Capacity building on Due Process of Procurement Practices 5,063,208 906,000 1,302,688 External Capacity building on Accounting and financial standards. 5,162,172 0 2,258,972 External Capacity building on Project management 6,253,379 2,688,370 2,937,029 External capacity building on Flexible accounting software 9,756,813 0 4,583,200 Training on Health Care Waste management to 68 staff from 34 PHCs contracted 1,484,731 0 0 Training on Health Care Waste management to the staff scale up LGAs 115,875,539 4,554,482 102,142,057 Build the capacity of the State health teams, PILU and Technical verifiers in ICT, Web portal, data 2,786,919 0 0 management and M&E Build the capacity of the State health teams, PIU and Technical verifiers on M&E 612,900 0 612,900 Relevant International workshops/trainings on PBF for key stakeholders 5,887,373 0 2,688,370 Train 262 PHCs staff from 131 PHCs and 85 GH 36,963,392 1,592,658 35,370.734 staff from 17 LGAs on EDM Integrated supportive supervision training 26,699,996 0 26,699,996 DHIS 2 TRAINING 55.768.660 0 55.768.660 492A6.7Z40 11 BORNO STATE PRIMARY HEALTHCARE DEVELOPMENT AGENCY ADDITIONAL FINANCING NIGERIA STATE HEALTH INVESTMENT PROJECT (AF-NSHIP) (WORLD BANK ASSISTED PROJECT IDA NO. 58510/TF2594) NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31s DECEMBER, 2020 4. Monitoring & Evaluation Spot Check on business plans ip HFs, LGA and HMB 30,844,906 30,349,176 295.000 Participate in the PHC Dept. and HMB on quarterly HFs business plan development 2,260,520 - - Participate in LGA Steering committee meetings 720,000 Participate in Meetings with PBF HF OlCs at LGA level 1,801.200 - - 35.626.62610.349.J.Z6 5. System Strengthening Study tour to Rwanda 36,506,650 - 12,553,850 Participate in performance Mid-year 0 0 review meeting/ retreat Annual and Quarterly review 5,990,662 3,311,247 meetings, other meetings, Workshops and Programs at National Level / other states Advocacy to stakeholders in the State 1,650,520 to brief them about NSHIP and to 0 solicit for their support State quarterly Technical Working 0 0 Group meetings (TWG) State Project Steering Committee 530,000 Meetings 0 Re-establishing 7,098,910 health service 7,098,910 through CMVAs Strengthening 20.665,768 LGAs 6.664.122 14,001,646 Management 72,442510 6&664122 36A96153 BORNO STATE PRIMARY HEALTHCARE DEVELOPMENT AGENCY ADDITIONAL FINANCING NIGERIA STATE HEALTH INVESTMENT PROJECT (AF-NSHIP) (WORLD BANK ASSISTED PROJECT IDA NO. 58510/TF2594) NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31sT DECEMBER, 2020 6. OPERATIONS & INFORMATIONS COSTS Procurement- Engaged staff salaries & allowances 85,620,048 39,496,878 28,718,779 Procurement- Engagement of Drivers, cleaners & Ext. 11,593,466 6,046,733 5,546,733 Audit Procurement- Internet facilities 5,908511 4,415,000 1,493,511 PILU Overhead, ( Office running cost building 169,320,344 52,540,007 85,410.,093 Maintenance Local Travels , Generators Maintenance& Missions. Documentation, Production and Dissemination of 3,951,874 0 2,607074 Information on Project and sharing of project report with relevant stakeholders Production of Jingles on activities of PBF through the 3,320,100 0 1,700,600 media houses Production of documentaries on the progress and impact of 3,300,000 0 1,800,000 PBF Production of IEC materials to aid social marketing of 14,270,500 4,158,000 9,112,500 PBF Airing of dramas, play lets and interviews on PBF 2,860,000 0 1,530,000 activities in the state Insurance of motor vehicles 59348635 35,013.988 24,334,647 139 1 BORNO STATE PRIMARY HEALTHCARE DEVELOPMENT AGENCY ADDITIONAL FINANCING NIGERIA STATE HEALTH INVESTMENT PROJECT (AF-NSHIP) (WORLD BANK ASSISTED PROJECT IDA NO. 58510/TF2594) NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31sT DECEMBER, 2020 7. CURRENT ASSETS: 7.1 STOCKS Stationaries (IEC Materials & 1.060,700 - Others) T-Shirts, face caps, Roll -up Banners Goods still in store as at December 2018 06 0 7.2 CASH AND BANK BALANCES: GT- Bank Plc: Special account 318,268,240 (1,146,974,155) 1,465,242,395 GT- Bank Plc: Draw down account 3,250,668 (774,850,806) 778,101,474 GT- Bank Plc: Dollar Interest account 0 (329,261) 329,261 GT- Bank Plc: Naira Interest account 5,632,762 5,617,318 15.444 GT- Bank Plc: Escrow acct for audit fee 1.250.000 1,250000 32.41.70191-55286.904) 2.243,688,574 8. FUNDS: World Bank IDA Loan 6,931,488315 1,755,016,465 297,938,802 Borno State Government 61.600,000 0 0 Contribution (SOML) 6,993.088.315 1.755.016.465 297.2 9 38802 9. OTHER INCOME: Bank interest 5,411,209 1,775,806 1,983,927 Refunds 315,170 0 0 OTHER INCOME: 4,000 0 0 Exchange gain 491,117.913 144.281.011 6,572.172 TOTAL FUND BALANCE 7.489.936.607 1901.073.2821 14