TARABA STATE GOVERNMENT OF NGER IA NIGERIA STATE HEALTH INVESTMENT PROJECT (NSHIP) FINANCIAL STMTEMENT FOR YEAR ENDED OCTOSER 31, 2020 LUNNY OKON & CO 'CIHARTEEID ACCOUNTANTS) TARABA STATE GOVERNMENT OF NIGERIA NIGERIA STATE HEALTH INVESTMENT PROJECT (NSHIP) WORLD BANK (IDA) CREDIT NO. 58510 FINANCIAL STATEMENTS FOR THE YEAR ENDED OCTOBER 31,2020 TABLE OF CONTENT PAGE CORPORATE INFORMATION 1 AUDITORS REPORT 2 STATEMENT ACCOUNTING POLICIES 3 STATEMENT OF FINANCIAL POSITION 4 STATEMENT OF RECEIPTS AND PAYMENTS 5 STATEMENT OF SPECIAL ACCOUNT 6 STATEMENT OF EXPENDITURE 7 NOTES ON THE ACCOUNT 8-11 TARABA STATE GOVERNMENT OF NIGERIA NIGERIA STATE HEALTH INVESTMENT PROJECT (NSHIP) WORLD BANK (IDA) CREDIT NO. 58510 FINANCIAL STATEMENTS FOR THE YEAR ENDED OCTOBER 31, 2020 CORPORATE INFORMATION PROJECT/IMPLEMENTATION UNIT (PIU) Dr. Ubanus Ezekiel - Project Coordinator Filibus Adamu - Monitoring and Evaluation Gaius Danjuma - Project Accountant Samaila Joshua Dimuti - Waste Manager Eric Bohang Nkumsar - Procurement Umar Mafindi - ICT Emmanuel Sambo - Technical Assistant Joy Elisha - Technical Assistant Kamal Afolabi - Technical Assistant Babangida Kawu - Assistant Project Accountant Halima Sa'ad - Finance Officer BANKERS Zenith Bank Plc. Jalingo EXTERNAL AUDITORS Sunny Okon & Co. (Chartered Accountants) 94 Moh'd Mustapha Way P.0 Box 514 Jimeta Yola GSM: 08055635688, 08035770136 E-mail: chiefokon@sunnyokonandco.com; sunnyokonandco@gmail.com Website: www.sunnyokonandco.com 1 REPORT OF THE AUDITORS TO THE HEAD. TARABA STATE PROJECT FINANCIAL MANAGEMENT UNIT (PFMU) ON THE FINANCIAL STATEMENTS OF THE WORLD BANK ASSISTED NIGERIAN STATE HEALTH INVESTMENT PROTECT FOR THE YEAR ENDED OCTOBER 31 2020. (58510) We have audited the accompanying project financial statements of the Nigeria State Health Investment Project, for the year ended October 31, 2020 prepared on the basis of the accounting policies on page 3. The project is financed by the IDA, credit number 58510. Respective responsibilities of the Project Management and Independent Auditors: The Project Implementation Unit (PIU) coordinates the activities of the project and is as such, responsible for the preparation of the financial statements. It is our responsibility as auditors to express an independent opinion, based on our audit, on these financial statements and to report our opinion to you. Basis of Opinion We conducted our audit in accordance with International Standards on Auditing, issued by the International Federation of Accountants, and World Bank guidelines. These standards and World Bank guidelines require that we plan and perform the audit to obtain reasonable assurance that the financial statements are free of 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 estimates and judgments 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 of material misstatements, whether cause by fraud, other irregularity or error. Informing our opinion, we also evaluated the overall adequacy of the presentation of the financial statements. Opinion In our opinion, the Project Financial Statements give a true and fair view of the financial position and of the cash flows of Nigeria State Health Investment Project, for the year ended October 31, 2020, in accordance with International Accounting Standards. The Statement of Expenditure (SOE) are in agreement with the books of account and adequate supporting documentation has been maintained to support claims to the World Bank for reimbursements of expenditures incurred; and which expenditures are eligible for financing under the credit agreement. The Statement of Special Account (SA) of the project on page 6 have been prepared on the basis of cash deposits and withdrawals for purpose of complying with the credit agreement and give a true and fair view of the beginning and ending balance and the account activity for the year ended October 31, 2020. For; SUNNY OKON & CO (Chartered Accountants) Yola, Nigeria A 19th February, 2021 Engagement Partner: Sunday Sampson Okon FCA, MBA, (FRC/2014/ICAN/00000007288) > 166 Atiku Abubakar Way, Off Idoro Road, Uyo, Akwa-lbom State Tel: 08062626078, 08055635688, 08035770136 >94 Mob. Mustapha Way, P.O.Box 514,1Jimeta, Yola. Tel: 08055635688, 08035770136. E-mail: admin@sunnyokonandco.com, sundaysokon@yahoo.com Website ww sunnyokonandco.com > Alkome Clinic Complex, Baga Road, P.O.Box 1018, Maiduguri, Borno State. Tel: 076- 974010 > 63Mayne Avenue, Calabar Cross River State. Tel: 08023574832, 08055635688 TARABA STATE GOVERNMENT OF NIGERIA NIGERIA STATE HEALTH INVESTMENT PROJECT (NSHIP) WORLD BANK (IDA) CREDIT NO. 58510 STATEMENT OF ACCOUNTING POLICIES The following are the significant accounting policies adopted by the Project in the preparation of its financial statements. a. Accounting Convention The accounts of the project are prepared under the historical cost convention. No adjustments are made in respect of any changes in specific or general price levels. b. Basis of Accounting The financial statements of the project are prepared on cash basis and no income statement is prepared because it is non- revenue earning. c. Non-Current Assets (i). Items intended for use over a period exceeding one accounting year and whose value per unit is not below N100,000 are classified as Non- Current Assets. (ii). Items intended for use over a period exceeding one accounting year but with unit cost below N100,000 are classified as Special Project Assets. (iii). All Non-Current Assets and Special Project Assets are recorded in the Non-Current Assets and Special Project Assets Registers respectively. (iv). No depreciation is charged on fixed assets as there are no revenues to match and because the accounts are on cash basis. d. Foreign Currency Foreign currencies are converted to Naira at the rates ruling at dates of the transactions. End of period balances in foreign currency are converted to Naira at the rate ruling at the last date of the period, while gains and losses resulting from such conversions are aggregated and recognized in the period they arise. 3 TARABA STATE GOVERNMENT OF NIGERIA NIGERIA STATE HEALTH INVESTMENT PROJECT (NSHIP) WORLD BANK (IDA) STATEMENT OF FINANCIAL POSITION AS AT OCTOBER 31, 2020 2020 2019 NOTES N N Non-Current Assets 1 155,899,008 155,899,008 Special Project Assets 2 7,841,821 7,841,821 Development Expenditure 3 2,424,501,965 1,465,172,227 Cash and Cash Equivalent 4 242,927,518 322,656,053 Total Assets 2,831,170,312 1,951,569.109 FINANCED BY: Project Funding 5 2,831.170,312 1.951,569,109 Ject Coordi tor Head PFMU Director General Nigeria State Health Investment Project NSHIP 4 TARABA STATE GOVERNMENT OF NIGERIA NIGERIA STATE HEALTH INVESTMENT PROJECT (NSHIP) WORLD BANK (IDA) STATEMENT OF RECEIPTS AND PAYMENTS FOR THE PERIOD ENDED OCTOBER 31-2020 NOTES 2020 2019 Cummulative N N N Opening Balance 322,656,053 461,041,422 - RECEIPTS International Development Association 6 879.601.203 1,034,086 385 2.831.170.312 Total Receipts 1,202257.256 1,495,127,807 2,8311-70312 PAYMENTS: Goods 3a 0 95,244,025 171,574,798 Minor Works 3b 0 144,465,607 200,177,607 Subsidies 3c 847,978,297 570,829,876 1,418,808,176 Consultant Services/Training 3d 82,707,956 327,190,946 696,679,149 Operating Cost 3e 29,495,381 39.062,254 105,145.181 Total payments 960,181,634 1176,792 708 2,592.384,911 Surplus of Receipts over Payments 242,075,622 318,335,099 238,785,403 Exchange Difference 851,896 4320,954 4,142,115 Closing Balance 242,927.518 322,656.053 242,927,518 NSHIP. 5 TARABA STATE GOVERNMENT OF NIGERIA NIGERIA STATE HEALTH INVESTMENT PROJECT (NSHIP WORLD BANK (IDA) STATEMENT OF SPECIAL ACCOUNT FOR THE PERIOD ENDED OCTOBER 31.2020 Account Number: 5070563099 Bank: Zenith Bank Plc Address: Jalingo, Taraba State Currency: Us Dollar ($) 2020 2019 Cummulative $ $ $ Opening Balance 918,469.39 1,299,976.89 - ADD: IDA Replenishment(Note 16) 2,469,418.98 2,997,346.05 8.333,898.54 3,387,888.37 4,297,322.94 8,333,898.54 DEDUCT: Payments (Transfer to drawdown A/C] 2,755,274.50 3,345,011.97 7,605,190.67 Direct Payments from Special Account - 33,673.20 95,814.20 Service Charges - 168.38 279.80 Total Payments 2,755,274.50 3,378,853.55 7,701,284.67 Closing Balance 632,613.87 918,469.39 632,613.87 NSHIP 6 TARABA STATE GOVERNMENT OF NIGERIA NIGERIA STATE HEALTH INVESTMENT PROJECT (NSHIP) WORLD BANK (IDA) STATEMENT OF EXPENDITURE FOR THE PERIOD ENDED OCTOBER 31,2020 W/NO Goods, Consultant Operating Subsidies N Service & Training Cost 1Q 25,923,256 11,216,211 302,176,400 339,315,867 2Q 5,554,240 6204966 - 11,759,206 3Q 29,345,860 7,624,387 297,670,984 334,641,231 4Q 21.884.600 4,449,817 248,130,913 343.263,032 82,707,956 29,495,381 847,978,297 960,181 634 NSHIP 7 TARABA STATE GOVERNMENT OF NIGERIA NIGERIA STATE HEALTH INVESTMENT PROJECT (NSHIP) WORLD BANK (IDA) NOTE TO THE ACCOUNTS FOR THE PERIOD ENDED OCTOBER 31, 2020 2020 2019 1 NON-CURRENT ASSETS Plant and Machinery (Note la) 4,309,500 4,309,500 Motor Vehicle (Note 1b) 136,574,725 136,574,725 Computer and Accessories (Note lc) 15,014,783 15,014,783 155,899,008 155,899,008 (a) PLANT AND MACHINERY 30KVA Generator 4,309,500 4.309.500 49500 4309,500 (b) MOTOR VEHICLE 3Nos Toyota Hilux 63,600,525 63,600,525 1Nos Toyota Hilux 22,223,500 22,223,500 2Nos Buses (Mobile clinic) 50.750700 50,750O700 136,574,725 136,574,725 (c) COMPUTERR AND ACCESSORIES 15.014.783 15,014,783 15,014,783 15.014.783 2 SPECIAL PROJECT ASSETS Furniture and Fittings (Note 2a) 3,828,071 3,828,071 Equipments (Note 2b) 4±013750 4,013,750 7841,821 7,841821 (a) FURNITURE AND FITTINGS Chairs, tables and cushions 3,828,071 3,828,071 3,828,071 3.828.071 (b) EQUIPMENTS Data tools 4,013,750 4013,750 4,013.750 4,013750 NSHIP TARABA STATE GOVERNMENT OF NIGERIA NIGERIA STATE HEALTH INVESTMENT PROJECT (NSHIP) WORLD BANK IDA) NOTES TO THE ACCOUNTS FOR THE PERIOD ENDED OCTOBER 31, 2020 2020 2019 N N 3 DEVELOPMENT EXPENDITURE Balance brought forward 1,465,172,227 369,843,943 Goods (Note 3a) 95,244,025 Minor Works (Note 3b) - 67,322,137 Subsidies (Note 3c) 847,978,297 570,829,876 Consultancy, Workahops/Training (Note 3d) 82,707,956 327,190,946 Operational Cost (Note 3e) 29,495,381 39,062,254 Exchange Loss/Gain (Note 7) (851.896) (4.320,954) Balance Carried Forward 2,424,501.965 1L465,172,227 (a) GOODS Supply of Equipments to Facilities - 95,244,025 _ 95244,025 (b) MINOR WORKS Sundries - 67,322,137 ________67.322,137 (c) SUBSIDIES Sundries 847,978,297 570,829,876 847,978,297 570,829,876 (d) CONSULTANCY, WORKSHOPS AND TRAINING Consultant Services 63,739,700 278,446,322 Workshop/Training 18,968.256 48,744,624 82,707.956 327,190,946 (e) OPERATIONAL COST Transport and Travelling 1,505,260 8,144,519 Contribution to PFMU 2,000,000 1,500,000 Vehicle Repairs/Maintenance 1,911,400 - Audit Fees 1,600,000 - Entertainments and Hospitality 766,525 15,628,420 Stationeries and Printing 842,225 3,250,815 Airtime/Website 2,904,000 - Salaries and Wages 11,818,000 - Diesel 438,000 - Cleaning and Sanitation 224,100 - Bank Charges 69,491 - Miscellaneous 556,980 - Utility 77,000 - Security 1,432,500 3,140,500 Media and Publicity 3,349,900 7.398,000 Balance Carried Forward 29,495,381 39062,254 4 CASH AND CASH EQUIVALENTS Zenith Bank Plc - Special A/c 242,923,726 316,871,940 Zenith Bank Plc - DrawDown A/c 3292 5.784,113 242,927.518 322.656 053 5 PROlECT FUNDING Balance brought forward 1,951,569,109 917,482,724 IDA Funds 879.601.203 1,034,086,385 Balance Carried Forward 2,831.170,312 1,951,569,109 NSHIP 9 TARABA STATE GOVERNMENT OF NIGERIA NIGERIA STATE HEALTH INVESTMENT PROIECT (NSHIP) WORLD BANK (IDA) NOTES TO THE ACCOUNTS FOR THE PERIOD ENDED OCTOBER 31, 2020 6 RECEIPTS Date Particular IDA-$ Special IDA N Total( 13/01/2020 IDA Transfer 1,514,298.54 522,432,996 522,432,996 3/2/2020 IDA Transfer 246,513.71 85,047,230 85,047,230 7/5/2020 IDA Transfer 692,614.23 265,963,864 265,963,864 14/10/2020 IDA Transfer 154992.50 6,157,113 6,157,113 2,469,418.98 879,601,203 879,601,203 NSHIP 10 TARABA STATE GOVERNMENT OF NIGERIA NIGERIA STATE HEALTH INVESTMENT PROJECT (NSHIP) WORLD BANK (IDA) NOTES TO THE ACCOUNTS FOR THE PERIOD ENDED OCTOBER 31,2020 7 EXCHANGE DIFFERENCE $ Received Amount Withdrawal Amount Difference Rate (Aw Rate BI N N N N N 22,662.50 345.00 7,818,563 345.00 7,818,563 0 823,173.90 345.00 283,994,996 345.00 283,994,996 0 19,121.78 345.00 6,597,014 345.00 6,597,014 0 106,430.68 345.00 36,718,585 345.00 36,718,585 0 19,840.65 380.00 7,539,447 375.00 7,440,244 99,203 13,337.93 384.00 5,121,765 380.00 5,068,413 53,352 386,547.22 387.00 149,593,774 387.00 149,593,774 0 21,875.00 387.00 8,465,625 387.00 8,465,625 0 22,800.00 387.00 8,823,600 386.00 8,800,800 22,800 43,927.00 385.00 16,911,895 384.00 16,867,968 43,927 471,616.52 385.00 181,572,360 385.00 181,572,360 0 409,793.94 385.00 157,770,667 385.00 157,770,667 0 310.00 384.00 119,040 384.00 119,040 0 219,282 Special Account Closing Balance 632,61 Net Exchange Difference NSHIP