INTERNATIONAL CENTRE OF INSECT PHYSIOLOGY AND ECOLOGY (icipe) STATEMENT OF INCOME AND EXPENDITURE FOR AFRICA REGIONAL SCHOLARSHIP AND INNOVATION FUND FOR APPLIED SCIENCES, ENGINEERING AND TECHNOLOGY (RSIF) PROJECT IDA GRANT NO: D347-3A FOR THE PERIOD 1 JULY 2019 TO 31 DECEMBER 2019 International Centre of Insect Physiology and Ecology (icipe) Project Title: Africa Regional Scholarship and Innovation Fund for Applied Sciences, Engineering and Technology (RSIF) Statement of Income and Expenditure For the Period 1 July 2019 to 31 December 2019 GLOSSARY OF TERMS ASET Applied Sciences, Engineering and Technology IAS International Auditing Standards icipe International Centre of Insect Physiology and Ecology IDA International Development Association - World Bank KES Kenya Shillings PASET Partnership for Skills in Applied Sciences, Engineering and Technology PhD Doctor of Philosophy RCU Regional Coordination Unit SSA Sub-Saharan Africa USD United States Dollar International Centre of Insect Physiology and Ecology (icipe) Project Title: Africa Regional Scholarship and Innovation Fund for Applied Sciences, Engineering and Technology (RSIF) Statement of Income and Expenditure For the Period 1 July 2019 to 31 December 2019 TABLE OF CONTENTS 1. INTRODUCTION ....................***.****.*.*.***-*****. ****-....................................................................... 1 1.1 BACKGROUND ................................................................ 1.2 AUDIT OBJECTIVES ................................................................................................................. 2 1.3 AUDIT SCOPE AND APPROACH ......................................................... 1.4 SUMMARY OF AUDIT RESULTS ....................................................................................................4 2 STATEMENT OF PROJECT MANAGEMENT'S RESPONSIBILITIES...............................................................5 3 INDEPENDENT AUDITOR'S REPORT .............................................................................EPORT.6........... 6 4 STATEMENT OF INCOME AND EX PENDITUREPE.............................................................................. 8 5 SUMMARY OF ACTIVITY PER DESIGNATED ACCOUNT ...................................................C.T.............. 13 ii International Centre of insect Physiology and Ecology (icipe) Project Title: Africa Regional Scholarship and Innovation Fund for Applied Sciences, Engineering and Technology (RSIF) Statement of Income and Expenditure For the Period 1 July 2019 to 31 December 2019 1. INTRODUCTION 1.1 Background 1.1.1. Organization Background The International Centre of Insect Physiology and Ecology (icipe) is an international scientific research institute, headquartered in Nairobi, Kenya which works towards improving lives and livelihoods of people in Africa. icipe's mission is to help alleviate poverty, ensure food security and improve the overall health status of peoples of the tropics by developing and extending management tools and strategies for harmful and useful arthropods, while preserving the natural resource base through research and capacity building. The Centre's main objective is to research and develop alternative and environmentally friendly pest and vector management strategies, that are effective, selective, non-polluting, non- resistance inducing, and which are affordable to resource-limited rural and urban communities. icipe's mandate further extends to the conservation and utilization of the rich insect biodiversity found in Africa. 1.1.2. Project Background The Partnership for skills in Applied Sciences, Engineering and Technology (PASET) is an Africa- led initiative with the objective of strengthening the science, technology and engineering capability in sub-Saharan Africa to further its socio-economic transformation. PASET was launched in 2013 by selected African governments and the private sector, with facilitation from the World Bank. The partnership recognized the critical need to strengthen science, engineering and technology capabilities for the socio-economic development of Sub-Saharan Africa (SSA), and the need for a regional approach for achieving this, and thus formed the PASET Regional Scholarship and Innovation Fund To ensure a well-managed, efficient and results-oriented Fund, icipe has established the Regional Scholarship and Innovation Fund's Regional Coordination Unit (RCU) which is led by the Director General (DG) of icipe. The RCU works in coordination with the PASET Secretariat and PASET's governing bodies to implement the project. The project aims to strengthen the institutional capacity for quality and sustainable doctoral training, research and innovation in transformative technologies in sub-Saharan Africa (SSA) through: > Capacity development of the Regional Coordination Unit (RCU, icipe) to become a scientific, technological and innovation capacity builder for PhD programs and universities in SSA in the fields of applied sciences, engineering and technology (ASET) that support transformative technologies; and > Financing for scholarships and research grants in ASET fields in SSA, supported by a Government of Korea Trust Fund, administered by the Bank. 1 International Centre of Insect Physiology and Ecology (icipe) Project Title: Africa Regional Scholarship and Innovation Fund for Applied Sciences, Engineering and Technology (RSIF) Statement of Income and Expenditure For the Period 1 July 2019 to 31 December 2019 1.2 Audit Objectives Ernst & Young LLP were engaged by icipe to carry out the audit of the Africa Regional Scholarship and Innovation Fund for Applied Sciences, Engineering and Technology (RSIF) project, for the period 1 July 2019 to 31 December 2019. The specific objectives of the audit were to: > Audit the statement of income and expenditure of the Programme and express an opinion as to whether the Statement presents fairly, in all material respects and in conformity with the basis of accounting described in the report, the use of funds in accordance with grant agreements; > Review the internal control structure in order to determine whether the project's management have put in place satisfactory controls aimed at preventing, detecting, reducing or eliminating errors and irregularities; > Test compliance with terms of the grant agreement, applicable laws and regulations as part of obtaining reasonable assurance about whether the statement of income and expenditure is free of material misstatements and report on any identified material instances of non- compliance; 2 International Centre of Insect Physiology and Ecology (icipe) Project Title: Africa Regional Scholarship and Innovation Fund for Applied Sciences, Engineering and Technology (RSIF) Statement of Income and Expenditure For the Period 1 July 2019 to 31 December 2019 1.3 Audit Scope and Approach We planned and conducted the audit in accordance with the International Standard on Auditing (ISA) promulgated by the International Federation of Accountants (IFAC) and included such tests and auditing procedures as we considered necessary under the circumstances. Special attention was paid as to whether the: > World Bank financing (and all external financing where the World Bank is not the only financier) has been used in accordance with the conditions of the relevant financing agreement, with due attention to economy and efficiency, and only for the purposes for which the financing was provided; > Counterpart funds have been provided and used in accordance with the relevant financing agreements, with due attention to economy and efficiency, and only for the purposes for which they were provided; > Goods, works and services financed have been procured in accordance with the relevant financing agreements including specific provisions of the World Bank Procurement Policies and Procedures; > All necessary supporting documents, records, and accounts have been maintained in respect of all project activities, including expenditures reported using Interim Unaudited Financial Statements (FS) method of reporting. > Designated Accounts (if used) have been maintained in accordance with the provisions of the relevant financing agreements and funds disbursed out of the Accounts were used only for the purpose intended in the financing agreement; > National laws and regulations have been complied with, and that the financial and accounting procedures approved for the project (e.g. operational manual, financial procedures manual, etc.) were followed and used; > Assets procured from project funds exist and there is verifiable ownership by the implementing agency or beneficiaries in line with the financing agreement; > Ineligible expenditures included in withdrawal applications are identified and reimbursed to the Designated Accounts. In complying with ISA, we also paid particular attention to the following matters: > Fraud and Corruption: Considered the risks of material misstatements in the statement of income and expenditure due to fraud as required by ISA 240. We will obtain sufficient appropriate audit evidence about the assessed risks and respond appropriately to the identified or suspected fraud. > Laws and Regulations: In designing and performing audit procedures, evaluating and reporting the results, we will consider that noncompliance by the implementing agency with laws and regulations may materially affect the statement of income and expenditure as required by ISA 250. > Governance: We will communicate audit matters of governance interest arising from the audit of statement of income and expenditure with those charged with governance of the Centre as required by ISA 260. > Risks: We will determine the overall responses to assessed risks at the statement of income and expenditure level and design and perform further audit procedures to respond to assessed risks at the assertion level as required by ISA 330. 3 International Centre of Insect Physiology and Ecology (icipe) Project Title: Africa Regional Scholarship and Innovation Fund for Applied Sciences, Engineering and Technology (RSIF) Statement of Income and Expenditure For the Period 1 July 2019 to 31 December 2019 1.4 Summary of Audit Results a) Opinion on the Statement of Income and Expenditure The total funding received during the period 1 July 2019 to 31 December 2019 amounted to USD 1,180,171 and the surplus of USD 5,077,142 was the balance brought forward from the previous audit period. Additional income was earned on funds kept in an interest-bearing account amounting to USD 6,409. A total of USD 966,011 was expended during the period resulting in surplus closing fund balance of USD 5,297,711. Our audit opinion on the project's special purpose report is unqualified. Refer to section 3 of this report for details. b) Project's Internal Controls icipe has established a functional system of internal controls. We examined the accounting records, procedures, systems and controls applicable to the project management. We did not find any reportable instances of weakness in the internal control environment. c) Compliance with Terms and Conditions of the Contract and Applicable Laws and Regulations This audit report only covers the project's compliance requirements with the terms and conditions contained in the grant contract and applicable laws and regulations. We did not find any reportable instances of non-compliance for the period under audit. d) Designated Accounts We examined whether icipe complied with the Bank's procedures and reviewed the completeness of the balances of the Designated Accounts as at 31 December 2019. We examined the eligibility of financial transactions during the period under examination and surplus as at 31 December 2019, the operation and use of the Designated Accounts in accordance with the terms of reference for the audit. The bank balance of USD 6,081,291 agreed to the bank confirmation received from NCBA Bank Kenya (previously Commercial Bank of Africa) as at 31 December 2019. Details are provided in section 4.1.8 of this report. We did not find any reportable instances of non-compliance in relation to the designated bank accounts. e) Follow up of Prior Year Audit Recommendations Please see details below for the follow-up of prior period audit finding for the management letter dated 3 October 2019. Prior Finding Recommendation Status Period IML Ref 4.1 Operation of Dormant Bank Accounts A review of open bank Resolved DuringfL o e o baccounts should be carried The accounts were onfirmation from Commercial Bank of out periodically to identify subsequently closed Africa, we noted icipe had three dormant accounts. n October 2019. dormant project bank accounts that Any accounts that are no had nil balances at the end of the longer required should be inancial year with no activity during closed as soon as possible. he year. 4 International Centre of Insect Physiology and Ecology (icipe) Project Title: Africa Regional Scholarship and Innovation Fund for Applied Sciences, Engineering and Technology (RSIF) Statement of Income and Expenditure For the Period 1 July 2019 to 31 December 2019 2 STATEMENT OF PROJECT MANAGEMENT'S RESPONSIBILITIES The project management team is responsible for ensuring that the International Centre of Insect Physiology and Ecology (icipe) keeps proper accounting records that are sufficient to show and explain the transactions of the project; disclose with reasonable accuracy at any time the financial position of the project; and that enables them to prepare a statement of income and expenditure for the project that complies with the Centre's accounting policies and the requirements of the grant agreement. They are also responsible for safeguarding the assets of the Project and for taking reasonable steps for the prevention and detection of fraud and other irregularities. The project management team accepts responsibility for the preparation and presentation of the statement of income and expenditure in accordance with the Centre's accounting policies and the requirements of the grant agreement. They also accept responsibility for: (i) Designing, implementing and maintaining internal control as they determine necessary to enable the preparation of a statement of income and expenditure that is free from material misstatements, whether due to fraud or error; (ii) Selecting suitable accounting policies and then applying them consistently; and (iii) Making judgements and accounting estimates that are reasonable in the circumstances; (iv) Ensuring adherence to the terms and conditions of the grant agreement; (v) Ensuring that the project funds were used exclusively for the purposes of the project in accordance with the grant agreement. The project management team acknowledges that the independent audit of the statement of income and expenditure does not relieve them of their responsibilities. Approved by the project management team on................... . . ........... 2020 and signed on its behalf by: Moses Osiru Regional Coordination Unit Director of Finance and Administration 5 Ernst & Young LLP Tel: +254 20 2886000 Certified Public Accountants Email: info@ke.ey.com Kenya Re Towers www.ey.com Building a better Upper Hill LLP/2015/52 working world Off Ragati Road P.O. Box 44286 - 00100 Natrobi GPO, Kenya 3 INDEPENDENT AUDITOR'S REPORT International Centre for Insect Physiology and Ecology icipe Duduville Campus, Kasarani Nairobi, Kenya. Report on the Statement of Income and Expenditure Opinion We have audited the statement of income and expenditure for the Africa Regional Scholarship and Innovation Fund for Applied Sciences, Engineering and Technology (RSIF) project, for the period 1 July 2019 to 31 December 2019 and the notes to the statement of income and expenditure, including a summary of significant accounting policies set out on page 8 to 14. In our opinion, the accompanying statement of income and expenditure presents fairly, in all material respects, the income received, and expenditure incurred by the Africa Regional Scholarship and Innovation Fund for Applied Sciences, Engineering and Technology (RSIF) project for the period 1 July 2019 to 31 December 2019, in accordance with icipe's accounting policies and the requirements of the grant agreement. Basis for Opinion We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Statement of Income and Expenditure section of our report. We are independent of Centre in accordance with the International Ethics Standards Board for Accountants' Code of Ethics for Professional Accountants (IESBA Code). We have fulfilled our other ethical responsibilities in accordance with the IESBA Code, and in accordance with other ethical requirements applicable to performing audits of special purpose financial statements in Kenya. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Emphasis of Matter - Basis of Accounting We draw your attention to Note 4.1.1 to the statement of income and expenditure, which describes the basis of accounting. The Statement of Income and Expenditure is prepared to assist icipe in complying with the financial reporting provisions of the partnership agreement between icipe and the International Development Association - World Bank, Korea World Bank Group Partnership and the PASET Board. As a result, the statement of income and expenditure may not be suitable for another purpose. Our opinion is not modified in respect of this matter. Responsibilities of Management and those Charged with Governance for the Statement of Income and Expenditure Management is responsible for the preparation of the statement of income and expenditure in accordance with icipe's accounting policies and the requirements of the grant agreement and for such internal control as the management determines is necessary to enable the preparation of a statement of income and expenditure that is free from material misstatement, whether due to fraud or error. In preparing the statement of income and expenditure, management is responsible for assessing the Centre's 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 intend to liquidate or to cease operations, or has no realistic alternative but to do so. 6 Partnrs: CO Atinida, HC Vasi '. M or ih i nN, a, F NM K aau, NM Mur oya, TO0 e, CA Cu :, CN rh H Nannyome. A membeor firn of Ernst & Youno Goal Lmited,. Licensed by CPAK as a Limited L;ability Partrrship of C r PublIc AccoUrtanrts. Building a better working world Those charged with governance are responsible for overseeing the Centre's financial reporting process. Auditor's Responsibilities for the Audit of the Statement of Income and Expenditure Our objectives are to obtain reasonable assurance about whether the statement of income and expenditure is 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 ISAs 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 this statement of income and expenditure. As part of an audit in accordance with ISAs, we exercise professional judgement and maintain professional skepticism throughout the audit. We also: * Identify and assess the risks of material misstatement of the statement of income and expenditure, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our 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 control; * Obtain 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 purpose of expressing an opinion on the effectiveness of the Centre's internal control; * Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management; * Conclude 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 Centre's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the statement of income and expenditure or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Centre to cease to continue as a going concern. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Report on Other World Bank Requirements As required by the terms of reference, we report to you, based on our audit, that; proper books of account have been kept by icipe, so far as appears from our examination of projects books and the books of account reconcile to the project's statement of income and expenditure. The engagement partner responsible for the audit resulting in this independent auditor's report is CPA Nancy M. Muhoya Practicing Certificate No. 2158. Nairobi, Kenya .. ............. 2020 7 〕市。 СО О� , � �+"� г� � � вi ! I LЛ � ' т-1 �� � ' г-1 Е 1 #тi'I ,-� .--� � и ; 11, '� i ; �' г , �О � � ..,,!1.,j j О� � о ; i г1 ��,..; .. IO Ог�! �СО � i ;СО: iM €1��,i; N€и: i�1V г i i i . г i ,и; �,:! j L `� Е �и � iLl1i '(�; гf`-'��i : "1lм; '�1I` �� �� � iм j 'N, ilЛi !O�,I � j(р;�' ;Q\�i < ;м; rn: ;гv'а: о;со; ;N�; ! 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Х i � ` �� г V,,,_, € 1 € N й го ai о.° ш= � о� о�i vi г о� ;ш i'^; г и € Cj i f � с � 1- � а�о С��� ;F-' � , �i [ ш�QI Сг i ;° � � � р1- Са Q� I�j.. �f i.C]i s+�+! ifl'; !f1i�f0; �а.�+� и о'О �.�. °' v F- O г � � о�'"'' �,п!` �; � oi ; �; ш: roj �i � о; L о� Е ш ш� и �- ( iU,N ._,N: ;и; �Е-; ги; !�;m;QE ,t-� r г�� ш 'о }' � .,� L г�,а о ��иш � International Centre of Insect Physiology and Ecology (icipe) Project Title: Africa Regional Scholarship and Innovation Fund for Applied Sciences, Engineering and Technology (RSIF) Statement of Income and Expenditure For the Period 1 July 2019 to 31 December 2019 4.1 NOTES TO THE STATEMENT OF INCOME AND EXPENDITURE 4.1.1 Accounting Policies a) Basis of Accounting The statement of income and expenditure is prepared on a modified cash basis of accounting. b) Foreign Currency Transactions Project costs are incurred mainly in USD and KES. Transactions are then translated and posted in USD using the monthly exchange rate set by icipe's management. Q Income and Expenditure Recognition Receipts (income) from donors are recognized when received, and expenditure is recognized when incurred. 4.1.2 Balance brought forward The surplus balance brought forward of USD 5,077,142 in the Statement of Income and Expenditure is brought forward from the period 24 September 2018 to 30 June 2019 as per the audit report for that period, whose audit opinion dated 3 October 2019 was unqualified. 4.1.3 Grant Income Grant Income represent funds received from the World Bank and other external financiers during the period 1 July 2019 to 31 December 2019 for the implementation of project activities. During the period, icipe received USD 1,180,171 as shown below: IDate bescription Amount USD 126-07-2019 lReceipt from World Bank 380,122 113-09-2019 lReceipt from World Bank 800,049 Total 1.180,171 4.1.4 Interest Income This represents net interest income earned during the period. This is as tabulated below: Description Interest Les Net --ffi-fii-re s-f Earned Bank Chargf s Income USD USD USD 11DA Replenishment to IDA USD-Designated account- 2,309 (435) 1,874 WB-6455420-382 IDA Replenishment to IDA USD-Designated account- 1431 M . . . ........ . KOREA TF-6455420-445 i ,USD-Designated account-OTHERS-6455420-424 62 8 0 (L566) !Total Interest Income 8,732 (2,323) 6,41 . ......... ---- - --------- . . . . . . . . . .. . ............................. . . .......... 4.1.5 Counterpart Funds There were no counterpart funds received as at 31 December 2019. 10 International Centre of Insect Physiology and Ecology (icipe) Project Title: Africa Regional Scholarship and Innovation Fund for Applied Sciences, Engineering and Technology (RSIF) Statement of Income and Expenditure For the Period 1 July 2019 to 31 December 2019 4.1.6 Expenditure Expenditure is categorized in terms of two broad components. Further analysis of the expenditure is provided below: Component Description Amount USD Sub Component 1.1 Capacity building for managing and growing the RSIF General Fund and setting up a RSIF Permanent Fund 1.1.1 Individual consultants for RCU 135,875 1.1.2 Supplies and Services 7,470 11.1.4 Travel and Transport 37,108 1.1.5 Shared institutional costs 13,355 Subtotal 193,808 Sub Component 1.2 Capacity development for the operation and management of doctoral training and research in ASET fields in selected African universities 11.2.1 Individual consultants for RCU 98,742 [1.2.2 Supplies and Services 18,185 1.2.4 Travel and Transport 2,745 [1.2.5 Shared institutional costs 10,798 1.2.8 PhD and Research Grants Management activities 35214 Subtotal 165,684 Sub Component 1.3 Capacity development for improving quality of postdoctoral programs and research in ASET fields 1.3.1 Individual consultants for RCU 217,427 1.3.2 Supplies and services 5,454 1.3.3 [Capital items 22,400 Travel and transport 11,600 1.3.5 Shared institutional costs 24,052 1.3.8 PASET consultative advisory group 41 11.3.9 Host University Capacity Building 83,079 [Subtotal 364,053 [Sub Component 1.4 Capacity development for the operation and management of innovation grants 1.4.1 individual consultants for RCU 59,180 11.4.2 [Supplies and services 2,705 1.4.4 Travel and transport 2,022 1.4.5 Shared institutional costs 6,118 1.4.6 Innovation grants technical committee iL400 'Subtotal 71,425 ISub Component 2.1 Doctoral training in ASET fields in selected SSA host Universities and international partner universities 2.1.0 PhD scholarships (Korea Trust Fund) 41,588 3.0.0 PhD scholarships (African Governments Contrixiors) 120,349 13.1.2 [Other grant expenses (African Governments) 9,104 iSubtotal 171o04 Total 966,0111 11 International Centre of Insect Physiology and Ecology (icipe) Project Title: Africa Regional Scholarship and Innovation Fund for Applied Sciences, Engineering and Technology (RSIF) Statement of Income and Expenditure For the Period 1 July 2019 to 31 December 2019 4.1.7 Surplus The surplus of USD 5,297,711 represents income received in excess of the expenditure incurred for the period 24 September 2018 to 31 December 2019. The project staff recruitment was completed in May 2019 and thus the design and implementation of project activities kicked off after the staff came on board resulting in the low expenditure reported for the period. 4.1.8 Bank Balance The bank balance of USD 6,081,291 agreed to the bank confirmation received from NCBA Bank Kenya (previously Commercial Bank of Africa) as at 31 December 2019. Details are provided in the table below: Account Amount i_ _ USD IDA Replenishment to IDA USD-Designated account-WB-6455420-382 i 297,923 IDA Replenishment to IDA USD-Designated account-KOREA TF-6455420-445 100,122 USD-Designated account-OTHERS-6455420-424 483,246 IDA USD - World Bank -Call Deposit account 1,400,000 IDA USD - KOREA -Call deposit account 100,000 USD-Designated account-OTHERS -Call deposit account 3,700,000 Total 6081,291 4.1.9 Accounts Payable The accounts payable amounting to USD 783,580 relates to the amount refundable to icipe by the RSIF Programme for payments made by icipe on behalf of the programme. 4.1.10 Fixed Assets All the tangible assets that are acquired under the project are expensed in full at the date of acquisition. In the period under audit, assets procured included 11 laptops (model: HP EliteBook 830) and 2 pieces of furniture amounting to USD 25,002. 4.2.11 Reporting Currency The statement of income and expenditure is presented in USD. 12 International Centre of Insect Physiology and Ecology (icipe) Project Title: Africa Regional Scholarship and Innovation Fund for Applied Sciences, Engineering and Technology (RSIF) Statement of Income and Expenditure For the Period 1 July 2019 to 31 December 2019 5 SUMMARY OF ACTIVITY PER DESIGNATED ACCOUNT 5.1 IDA REPLENISHMENT TO IDA USD-DESIGNATED ACCOUNT-WB-6455420-382 Notes Actual Amount (USD) income Bank balance brought forward 5.4.1 1,287,195 Grant income received 5.4.2 1,180,171 Interest income received 5.4.3 2,309 Total income 2,469,675 Expenditure paid 5.4.4 (2,1 Surplus (a) 5.4.5 297,923 Bank balance (b) 5.4.6 9297,923 Variance (a-b) 5.2 IDA REPLENISHMENT TO IDA USD-DESIGNATED ACCOUNT-KOREA TF-6455420-445 Notes NeAcActual Amount (USD) Income Bank balance brought forward 5.4.1 200,001 Grant income received 5.4.2 - Interest income received 5.4.3 143 Total income 200,1441 Expenditure paid 5.4.4 (22) Transfer to short term call deposit account 5. 47 100,000) Total disbursements _ _100,022) Surplus (a) 5.4.5 100,122 Bank balance (b) 5.4.6 100,1 Variance (a-b) 5.3 USD-DESIGNATED ACCOUNT-OTHERS-6455420-424 Notes Amount (USD) Income Bank balance brought forward 5.4.1 4,318,317 Grant income received 5.4.2 Interest income received 5.4.3 6,280 1 Total income _4,324,597 Expenditure paid 5.4.4 (141,351) Transfer to short term call deposit account 5.4.7 300o000 Total disbursements (3,841.351) Surplus (a) 5.4.5 483,246 Bank balance (b) 5.4.6 483,246 Variance (a-b) 13 International Centre of Insect Physiology and Ecology (icipe) Project Title: Africa Regional Scholarship and Innovation Fund for Applied Sciences, Engineering and Technology (RSIF) Statement of Income and Expenditure For the Period 1 July 2019 to 31 December 2019 5.4 NOTES TO THE SUMMARY OF ACTIVITY PER DESIGNATED ACCOUNT 5.4.1 Bank balance brought forward Bank balance brought forward represents actual cash balances in the bank accounts as at 1 July 2019. The bank balance agreed to the bank confirmation received from NCBA Bank Kenya as at 30 June 2019, as per the audit report for that period. 5.4.2 Grant Income Grant Income represent funds received from the World Bank and other external financiers during the period 1 July 2019 to 31 December 2019 for the implementation of project activities. 5.4.3 Interest Income This represents net interest income earned during the period as tabulated below. Description Interest! Less WHT Net Interest Earned and Bank Income Chares __USD U SD USD IDA Replenishment to IDA USD-Designated account-, 2,309( 1,874 IWB-6455420-382 IDA Replenishment to IDA USD-Designated account-i 1431 (22)21 KOREA TF-6455420-445 JUSD-Designated account-OTHERS-6455420-424 6,2801 (1,866) 4 14 Total Interest Income 8,1321 (2,323)1 6,409 5.4.4 Expenditure This reflects the expenditure paid from the IDA bank accounts, including withholding taxes and bank charges. 5.4.5 Surplus The surplus represents an excess of cash received over the cash payments for the period 24 September 2018 to 31 December 2019. 5.4.6 Bank Balance This reflects the actual cash balances in the bank accounts. The bank balance agreed to the bank confirmation received from NCBA Bank Kenya as at 31 December 2019. Refer to note 4.1.8 for details. 5.4.7 Transfer to Short Term Call Deposit Account This relates to amount transferred to short term deposit accounts. Refer to note 4.1.8 for details. 5.4.8 Reporting Currency The summary of activity per designated account is presented in USD. 14