Integrated Social Services For Vulnerable Youth Project TF (0A5100-P163241) The Ministry of Youth Amman- Jordan Financial Statements, Auditor's Report For the Year Ended Dec.31 ,2020 Integrated Social Services For Vulnerable Youth Project TF (0A5100-P163241) The Ministry of Youth Amman - Jordan INDEX Page Numbers Auditor's Report 13 Statement Of Cash Receipt And Payment For The Year Ended Dec.31 , 2020 4 Statement Of Comparison Of Budget And Actual Amounts For The Year 5 Ended Dec.31 ,2020 Notes 6_12 Certified Public Accountant Audit Business Advisor Training Tax ** * METHODOLOGY 4qj_i_.JI _aj I9-o.JI j49J=j c jLiLuj-J I %§ -J For Auditing & Human Resources Development Independent Auditors' Report General Administration Respected The Ministry of Youth Integrated Social Services for Vulnerable Youth Project Report on the Audit of the Financial Statements Opinion We have audited the financial statements of The Integrated Social Services for Vulnerable Youth Project, which comprise the statement of Cash Receipt and Payment of the Project for the Year ended December 31, 2020 , notes to the financial statements, including a summary of significant accounting policies for the same Period. In our opinion, the accompanying financial statements present fairly, in all material respects, the statement of Cash Receipt and Payment of the Project for the Year ended December 31, 2020, in accordance with International Public Sector Accounting Standards (IPSAS) , under the cash basis of accounting. Basis for Opinion We conducted our audit in accordance with International Standards on Auditing (ISAs) and International Public Sector Accounting Standards (IPSAS). Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Project 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 Management and Those Charged with Governance for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with 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. Also the internal control over financial reporting involved in the preparation of replenishments, direct payments, payments through special commitments, and reimbursements i.e. expenditures reimbursed on the basis of Statements of Expenditures can be relied upon to support the related withdrawal. In preparing the financial statements, management is responsible for assessing the Project'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 intends to liquidate the Project or to cease operations, or has no realistic alternative but to do so. Those charged with governance are responsible for overseeing the Project's financial reporting process. 1 11941 ~ .jI2560 y.j 404 6ZA 4 12 - _466& 1 00962 79 9051570 - 00962 77 9990115: 4# 00962 6 5348020 : 00962 6 5338020 i:il E-mail: info@methodology-jo.com alijaroshe@yahoo.com www.methodology-jo.com Certified Public Accountant Audit Business Advisor Training Tax ** * iua .0 3 METHODOLOGY For Auditing & Human Resources Development Auditors'Responsibilities for the Audit of the Financial Statements Our objectives 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 auditors' 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 these financial statements. As part of an audit in accordance with ISAs and IPSAS, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: * Identify and assess the risks of material misstatement of the financial statements, 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 Project's internal control. And we have tested of the effectiveness of the internal controls over financial reporting involved in the preparation of replenishments, direct payments, payments through special commitments, and reimbursements i.e. expenditures reimbursed on the basis of Statements of Expenditures can be relied upon to support the related withdrawals. * Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. and ensures compliance with the laws, regulations, guidelines and provisions governed by the Grant agreement such as the World Bank Reporting requirements, Disbursement guidelines , and Procurement Guidelines in order to provide assurance on the financial management and procurement arrangements of the project. * Oobtain from management a Representation Letter as evidence of management's assertions in the project financial statements in accordance with ISA 580. * 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 Project's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors' report to the related disclosures in the financial statements 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 auditors' report. However, future events or conditions may cause the Company to cease to continue as a going concern. * Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. * Checked if Goods and services financed have been procured in accordance with World Bank Procurement Guidelines updated in May 2004 and October 2006. 2 11941 J~l.JI2560 y.j 404 6a5 4 1a-j1 jw$SAo - I 46- I 00962799051570-0096277 9990115: 4# 0096265348020: wSi 0096265338020:6i E-mail: info@methodology-jo.com alijaroshe@yahoo.com www.methodology-jo.com Certified Public Accountant Audit Business Advisor Training Tax ** * METHODOLOGY EL!j_a&Jl _ijIg9oiI j..j9~IL:j9 %D i Luj=JI 1 _L For Auditing & Human Resources Development * Checked the Project expenditures as reported by the Governing Body are reconciled with the amounts withdrawn from the Designated Account and the amounts deposited to the designated account are reconciled with the amounts disbursed from the Grant agreement. * Checked the Eligibility of expenditures claimed under Statement of Expenditures submitted to the World Bank for replenishment. This is in addition to substantiation of these expenditures. 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 Legal and Regulatory Requirements The Project has proper accounting records which are, in all material respects in compliance with the laws regulations, guidelines and provisions governed by the Grant agreement, consistent with the accompanying financial statempnts, accordingly, we recommend to approve these financial statements. Methodolo r ing & HR Development Amman- Jordan aros As on 27 May, 2021 Licee No.(881) 3 11941 ~IYJ~2560 404 6Z 4 6 - ;-.w jJ:lS Sj.o I - - 00962 79 9051570 - 00962 77 9990115: _4 00962 6 5348020: *al 00962 6 5338020: Z E-mail: info@methodology-jo.com alijaroshe@yahoo.com www.methodology-jo.com The Mininstry of Youth TF (0A5100--P163241) Statement of Cash Receipt and Payment for Integrated Social Services for Vulnerable Youth Project For the Year Ended December 31 , 2020 Amman - Jordan (U.S. dollar ) Receipts/Payments Receipts/Payments Notes Receipts/Payments (For The Year (For Previous years (Cumulative) Ended Dec.31 From Oct.1 ,2017 ,2020) To Dec.31 2019) Receipt Initial Deposit 3 280,000 - 280,000 Replenishments Transferred From JSDF During The Period Advances Transferred From JSDF To Contractors Total Receipts 1,054,704 346,119 708,585 Payments Category ( 1 ) Goods and Training5 (168,311) (159,074) (9,237) Training5 Category ( 2 ) 6 (423,538) (159,334) (264,204) Consultant's Services Category ( 3 ) Sub-grants 7 (6,294) (6,294) Category ( 4 ) Operating Costs 8 (50,317) (18,094) (32,223) Category ( 5 ) Training 9 (239,661) - (239,661) Total Payments (888,121) (342,796) (545,325) Increase in Cash 166,583 3,323 163,260 Cash Beginning Of The Year - 163,260 - Cash At End Of The Year 11 166,583 166,583 163,260 The notes form an integral part of this data 4 The Mininstry of Youth TF (0A5100-P163241) Statement of Comparison of Budget and Actual Amounts for Integrated Social Services for Vulnerable Youth Project for the Year Ended December 31 , 2020 Budget on Cash Basis Amman - Jordan (U.S. dollar) Actual Amounts For Previous For The years From Cumulative Budget Notes Year Ended Oct.1,2017 Amount Dec.31, 2020 To Dec.31 ,2019 Payments Category (1) Goods and 5 159,074 9,237 168,311 514,039 Training Category ( 2 )6 159,334 264,204 423,538 582,700 Consultant's Services Category ( 3 ) Sub Grants 7 6,294 - 6,294 1,300,000 Category (4 ) 8 18,094 32,223 50,317 163,900 Operating Costs Category ( 5 ) Training 9 - 239,661 239,661 239,661 Total of Expenses 342,796 545,325 888,121 2,800,300 The Notes Form An Integral Part Of This Data 5 The Ministry of Youth TF (0A5100-P163241) Integrated Social Services of Vulnerable Youth Project Amman- Jordan 1. General: The Project Was Signed On June 23,2017 Between The International Development Association (World Bank) Acting administrator Of Grant Funds Provided By Japan (Donor) Under The Japan Social Development Fund (JSDF) To The Ministry Of Youth (MOY) And ,The Hashemite Kingdom of Jordan Which Representative by Ministry of Planning and International Cooperation ( MOPIC ) , The Recipient Is Ministry Of Planning And International Cooperation (MOPIC) , The Amount Of Grant Not Exceeding Two Million And Eight Hundred Thousand Three Hundred United States Dollars ( USD $ 2,800,300 ) , To Assist In Improving The Quality Of Life Of Vulnerable Youth By Incresing The Provisions Of Services To Young People, By Increasing The Participation Of Youth In The (Decision - Making ) Related To These Servicess And By Empowering local CBOs ,Service Providers And Communities. (The grant) To Ministry Of Youth (MOY)- Implementing Agent Under Terms Satisfying To The Bank. 2. Significant Accounting Policies: The Financial Statement Have Been Prepared In Accordance With International Public Sector Accounting Standards (IPSAS) Under The Cash Basis of Accounting And The following Is A Summary Of The Significant Accounting Policies Applied. A: Accounting Period: These Financial Statements Have Been Prepared By The Project Management Unit(PMU) For The Accounting period From 01/01/2020 To 3 1/12/2020. B: Recognition Of Eligible Expenditure: Eligible Expenditures Are Recognized In Respect Of The Realizable Cost Of Service Required For The Activity And To Be Financed Out Of The Proceeds Of The Grant, While The Amount Of The Grant Shall Be Credited To An Account Opened By The Bank On Its Books In The Name Of The Recipient (The Grant Account) By Virtue Of Provisions Of The Existing Agreement . The Payments Out Of The Designated Account Shall Be Made Exclusively For Eligible Expenditure In Accordance With The Provisions Of The Agreement. The Designated Account Represents The Bank Account Opened By The Recipient At The Central Bank Of Jordan ( Account No.1/3660/3238 ) To Be Managed And Operated By The Ministry Of Planning And International Cooperation (MOPIC) (Representative Of The Recipient). The PMU opened another operational account ( Account No. 1/3660/3271) To Be Managed And Operated By The Ministry of Youth (MOY) Under Terms Satisfying To The Bank. Funds will be transfered from the Designated Account to the operating account as advances to be expensed out or to be refunded back to the Designated Account in a timely manner. C: Translation Currencies: The Grant Special Purpose Financial Statements Are Expressed In Terms Of U.S Dollars Solely For The Purpose Of Summarizing The Financial Position ,And The Results Of Its Operations For The Convenience Of Its Members And Other Interested Parties ,currency Transaction During The Year Are Recorded in US Dollar Converted Of The Rate Of Exchange Ruling On The Date Of Transaction, All Transactions Are In United State Dollars ( $ ). -6- The Ministry of Youth TF (0A5100-P163241) Integrated Social Services of Vulnerable Youth Project Amman- Jordan 3: Initial Deposit: The Initial Deposit Amount Was Transferred From JSDF On 4 October ,2017 Through Wire Transfer No.02797/2017/4 And Its Recorded In Book WA No.1 4: Replenishments Transferred From JSDF DurinLy The Period: The Below Details Are BreakDown For The Wire Transferes Deposited To The Designated Account: Wire Transfer Date Amount (USD) WA# NO. n No. 11/03/2018 31,203 2 00746/2018/4 14/05/2018 28,340 3 IPC/LON/18/0249 15/07/2018 19,566 4 IPC/LON/18/0551 26/09/2018 17,589 5 IPC/LON/18/0919 26/12/2018 19,053 6 IPC/LON/18/01482 21/02/2019 24,205 7 IPC/LON/19/00241 01/05/2019 21,039 8 IPC/LON/19/00599 25/09/2019 174,414 9 IPC/LON/19/01349 27/11/2019 93,176 10 IPC/LON/19/01702 Total For Previous years From Oct.1 ,2017 To 428,585 Dec.31 .2019 27/02/2020 116,740 11 IPC/LON/20/00342 04/08/2020 195,311 13 IPC/LON/20/01052 23/10/2020 34,068 14 IPC/LON/20/01419 Total ForFor The Year 346,119 Ended Dec.31 , 2020 Cumulative 774,704 5: Categorv(1) Goods And TraininL: The Goods And Training Purchased Details Are Devided In The Below Schedule: Amount(USD) For Previous years Description Notes C For The Year Fr ous years Cumulative EddD.3200From Oct. 1,2017 Ended Dec.31 , 2020 To Dec.31 ,2019 Goods 5(A) 15,357 6,120 9,237 Training 5(B) 152,954 152,954 - Total 168,311 159,074 9,237 -7- The Ministry of Youth TF (0A5100-Pl63241) Integrated Social Services of Vulnerable Youth Project Amman - Jordan 5(A) Goods: The Goods Purchased Details Are Devided In The Below Schedule: Amount(USD) For Previous years Name of Supplier Description For The Year Fr ous years Cumulative EddD.3200From Oct.1 ,2017 Ended Dec.31 , 2020 To Dec.31 ,2019 Amajad Maadat LandLine Establishment Telephones Holy Countries for Laptops and 5,578 - 5,578 Computers Printers Smart Steps For Laptops and 4943 4943 - Information Technology Printers Pluto for Office Furniture Office Furnitures 3,511 465 3,046 Bishara Dahdah Center Fisara & h P nt Office Furnitures 123 123 - Frames & Painting Al-Qabas for Office Office Supplies 472 - 472 Supplies Al-iiha'for Office Office Supplies 469 469 - Supplies Middle East Stationery Office Supplies 120 120 - Total 15,357 6,120 9,237 5(B) TraininL: The Training Details Are Devided In The Below Schedule: Amount(USD) For Previous years Description Cumulative Fre ear From Oct.1 ,2017 To Dec.31 ,2019 Norwegian Refugee Council (NRC) - 95,865 95,865 Implementation Support Services Salaries for trainers, coordinators, and field 57,089 57,089 accountants Total 152,954 152,954 - -8- The Ministry of Youth TF (0A5100-P163241) Integrated Social Services of Vulnerable Youth Project Amman-Jordan 6: Categorv(2) Consultatnts Services : The Consultants Services Details Are Devided In The Below Schedule Amount(USD) For Previous years Name Description Cumulative For The Year From Oct.1 ,2017 Ended Dec.31 , 2020 To Dec.31 ,2019 Mr.Loai Toghoug-Project Salaries 74,055 7,480 66,575 Manager Mrs.Mai Bdour- Salaries 52,869 12,189 40,680 Procurement Specialist Mrs.Rasha Al-Dajani- Salaries 103,996 45,778 58,218 Financial Specialist Mrs.Lana Al-Qudah- Salaries 80,327 30,920 49,407 M&E Specialist Mr.Abdallah Mohammad- Salaries 26,629 26,629 - Project Manager Mrs.Dina Batainah Salaries 1,912 1,912 - Mr.Hasan AL Satar - Salaries 7,810 6,694 1,116 Field Accountant Mr.Khaled AL Daoud - Salaries 7,810 6,694 1,116 Field Accountant Mr.Hamam Mubaideen - Salaries 7,810 6,694 1,116 Field Accountant Mr.Emad Qandalaft - Salaries 7,810 6,694 1,116 Field Accountant Mr.Qusai AL Shawabkeh- Salaries 1,116 - 1,116 Field Accountant Mr.Suhail Ahmad- Salaries 8,925 7,650 1,275 Senior Field Accountant Seagull Research & MIS Contract 37,518 - 37,518 Technology Methodology For Audit Contract 4,951 - 4,951 Auditing Total 423,538 159,334 264,204 -9- The Ministry of Youth TF (0A5100-P163241) Integrated Social Services of Vulnerable Youth Project Amman - Jordan 7: Category(3) Sub - grants : The Sub-grants Details Are Devided In The Below Schedule: Amount(USD) For Previous years Description For The Year FrPeiu er Cumulative Fre ear From Oct.1 ,2017 Ended Dec.31 , 2020 To Dec.31,2019 Goods & Training 6,294 6,294 - Total 6,294 6,294- 8: Categorv(4) Operating Costs: The Operating Costs Details Are Devided In The Below Schedule: Amount(USD) For Previous y ears Description For The Year FrPeiu er Cumulative Fre ear From Oct.1 ,2017 Ended Dec.31 , 2020 To Dec.31 ,2019 Communications 1,918 526 1,392 Advertising 16,372 - 16,372 Stationary & Printing 4,507 2,723 1,784 Fuel 705 - 705 Cleaning 2,939 717 2,222 Office Supplies(Kitchen&Bathroom) 564 - 564 Car Rent 13,965 5,502 8,463 Renting halls, equipment, and hospitality 8,005 8,005 - Bank Fees(Charges) 1,243 522 721 Other Expensses 99 99 - Total 50,317 18,094 32,223 9: Category(5) Training: The Training Details Are Devided In The Below Schedule: Amount(USD) . For Previous years Name Description For The Year Fr ous years Cumulative EddD.3,00From Oct.1 ,2017 Ended Dec.31 , 2020ToDc3 21 To Dec.31 ,2019 Norwegian Refugee Implementation . Support Services 239,661 - 239,661 Council (NRC)Contract Total 239,661 -239,661 -10- The Ministry of Youth TF (0A5100-P163241) Integrated Social Services of Vulnerable Youth Project Amman - Jordan 10: Financial Position : The Below Schedule Is Show The Financial Position Amount (USD) As At 31 December Account Notes 2020 2019 Designated Bank Account 11 110,165 163,260 Operating Bank Account 11 56,418 - Un disbursed Balance 12 1,745,596 2,091,715 Total 1,912,179 2,254,975 Amount(USD) For Previous years Account Notes For The Year Fro years Cumulative Ended Dec.31 2020 To Oct.1 ,2017 To Dec.31 ,2019 Grants Amount 1 2,800,300 - 2,800,300 Current year's Expenditures 5_9 (888,121) (342,796) (545,325) Total 1,912,179 (342,796) 2,254,975 11: Cash : The Below Schedule Is Show The Changing On Designated Bank Account Designated Bank Account Account No: 01-3660-3238 Depository Bank Central Bank of Jordan (CBJ) Address Amman-Jordan Operating Bank Account Account No: 01-3660-3271 Depository Bank Central Bank of Jordan (CBJ) Address Amman-Jordan Amount (USD) As At 31 December Description 2020 2019 Designated Bank Account (No.01-3660-3238) 110,165 163,260 Operating Bank Account (No.01-3660-3271) 56,418 - Total 166,583 163,260 -11- The Ministry of Youth TF (OA5100-P163241) Integrated Social Services of Vulnerable Youth Project Amman - Jordan 12: Un disbursed Balance: The Below Schedule Is Show The Un Disbursed Balance Amount(USD) . For Previous years Description For The Year FrPeiu er Cumulative Fre ear From Oct.1 ,2017 Ended Dec.31 , 2020 To Dec.31 ,2019 Grants Amount 2,800,300 - 2,800,300 Financed by JSDF (1,054,704) (346,119) (708,585) Total 1,745,596 (346,119) 2,091,715 -12-