SEND-GHANA MAKING THE BUDGET WORK FOR GHANA PROJECT GPSA GRANT#: TF018055 FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 ST DECEMBER 2016 EGALA & ASSOCIATES CHARTERED ACCOUNTANTS 14 ABEKA ROAD, TESANO PO BOX AN 16626 ACCRA NORTH TEL: 0302 - 222199 FAX: 0302 - 229358 SEND-GHANA MAKING THE BUDGET WORK FOR GHANA PROJECT GPSA GRANT#: TF018055 FINANCIAL STATEMENTS 31ST DECEMBER 2016 Contents Page Corporate information Independent auditors' report 2-3 Statement of sources and uses of funds 4 Project cost summary 5 Statement of financial position 6 Notes to the financial statements 7-9 Independent auditors' report on designated account statement 10 - 11 Designated account statement 12 SEND-GHANA MAKING THE BUDGET WORK FOR GHANA PROJECT GPSA GRANT#: TF018055 FINANCIAL STATEMENTS 31ST DECEMBER 2016 CORPORATE INFORMATION Board of directors Siapha Kamara Chief Executive Officer Mike Dzakuma Member Alhassan Y Seini Member Janet Mohammed Member Justina Anglaaere Member Registered office SEND-Ghana A 28 Regimanuel Estates Nungua Barrier, Sakumono Accra External auditors Egala & Associates Chartered Accountants 14 Abeka Road, Tesano PO Box AN 16626 Accra North Bankers Standard Chartered Bank I EGALAAND ASSOCIATES (CHARTERED ACCOUNTANTS & BUSINESS ADVISORS) BRANCH OFFICE 14, Abeka Road P. 0 . Box441 Tesano-Accra Tamale P. 0 . Box AN 16626 Tel.: 03Z20-22549 Accra-North, Ghana Fax.: 233 (0) 302 229358 Tel: 233 (0) 302 22 2199 E-mail: enqulry@eaaghana.com 233 (0) 302 268458 www.eaaghana.com 233 (0) 302 268424 SEND GHANA MAKING THE BUDGET WORK FOR GHANA PROJECT INDEPENDENT AUDITORS' REPORT TO SEND GHANA Report on the financial statements We have audited the accompanying financial statements of Making the Budget Work for Ghana Project for the year ended 31st December 2016 set out on pages 4 to 12. These financial statements comprise the statement of financial position at 31st December 2016, the project cost summary, statement of sources and uses of funds for the year then ended, and a summary of significant accounting policies and other explanatory notes. Project Management's responsibility for the financial statements SEND-GHANA is responsible for the preparation and fair presentation of these financial statements in accordance with World Bank financial reporting guidelines. This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error, selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances. Auditors' responsibility Our responsibility is to express an independent opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing . Those standards require that we comply with ethical requirements and plan and perform our audit to obtain reasonable assurance whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors' judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements 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. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion . 2 !------- E I --I ------ PARTNERS: I. Egala E. N. 0. Dodoo A. Abugri I SEND-GHANA MAKING THE BUDGET WORK FOR GHANA PROJECT GPSA GRANT#: TF018055 INDEPENDENT AUDITORS' REPORT (CONT'D) Opinion In our opinion, proper books of account have been kept and the accompanying financial statements, which are in agreement therewith, give a true and fair view of the state of the project's financial affairs 51 at 31 December 2016 and of its cost summary, sources and uses of funds for the year then ended in accordance with World Bank financial reporting guidelines and are in compliance with Grant Agreement Number TF018055 and accounting policies. ~~ Idris Egala - ICNP/1168 Egala & Associates (ICAG/F/2017/135) Chartered Accountants 14 Abeka Road, Tesano PO Box AN 16626 Accra North, Ghana Date J57lf) 3 I SEND-GHANA MAKING THE BUDGET WORK FOR GHANA GPSA GRANT#: TF018055 STATEMENT OF SOURCES AND USES OF FUNDS FOR THE YEAR ENDED 31ST DECEMBER 2016 14 Months ended 2016 2016 31/12/2015 Current Cumulative Cumulative Year Sources US$ US$ US$ Funds received during the year (Page 9) 249,975 499,950 249,975 ----------- ----------- ----------- Total 249,975 499,950 249,975 ----------- ----------- ----------- Uses Operating costs 101,600 210,471 108,871 Consulting 4,840 19,471 14,631 Training 54,875 105,238 50,363 Goods 1,469 7,188 5,719 Others 22,579 46,593 24,014 Exchange gain & others (9,821) (9,821) ----------- ----------- ----------- Total 185,363 379,140 193,777 ----------- ----------- ----------- Balance of Project funds 64,612 120,810 56,198 ------ ======= ====== 4 I SEND-GHANA MAKING THE BUDGET WORK FOR GHANA GPSA GRANT#: TF018055 PROJECT COST SUMMARY FOR THE YEAR ENDED 31ST DECEMBER 2016 14 Months 2016 2016 ended IDA 2015 Current year Cumulative Cumulative expenditure expenditure expenditure to date US$ US$ US$ Operating costs 101 ,600 210,471 108,871 Consulting 4,840 19,471 14,631 Training 54,875 105,238 50,363 Goods 1,469 7,188 5,719 Others 22,579 46,593 24,014 Exchange gain and others (9,821) (9,821) ----------- ----------- ----------- Total 185,363 379,140 193,777 ======= ======= ======= 5 I SEND-GHANA MAKING THE BUDGET WORK FOR GHANA PROJECT GPSA GRANT#: TF018055 STATEMENT OF FINANCIAL POSITION AS AT 31ST DECEMBER 2016 14 months ended 2016 2015 Project expenditure Notes US$ US$ Operating costs 210,471 108,871 Consulting 19,471 14,631 Training 105,238 50,363 Goods 7,188 5,719 Others 46,593 24,014 Exchange gain & others (9,821) ----------- ----------- 388,961 193,777 ======= ======= Current assets Accountable imprest 4 2,949 Cash & bank balances 5 108,040 56,198 ----------- ----------- 110,989 56 ,1 98 ----------- ----------- Total assets 499,950 249,975 ======= ======= Represented by International Development Agency (IDA) Grant 3 499,950 249,975 ----------- ----------- 499,950 249,975 ======= ======= The financial statements on pages 4 to 9 were approved on behalf of the Project Management ~ .9..CS. .. ... .... ... 2017 and signed on its behalf by: !.-:f.'. .. . on .... .. ... .. Director~ ............ ... .. Name 9up~ l(J(«t/y'c; Name: ~-- ft.~..1.. ~ ~ - 6 I SEND-GHANA MAKING THE BUDGET WORK FOR GHANA PROJECT GPSA GRANT#: TF018055 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2016 1. Making the Budget Work for Ghana Project (a) Financing agreement A Grant Agreement Number TF018055 was signed between SEND-GHANA and the International Bank for Reconstruction and Development (IBRD)/lnternational Development Agency (IDA) of the World Bank on 22"d October 2014 for a grant of eight hundred and fifty thousand United States Dollars (US $850,000) to assist in financing the project (Making The Budget Work for Ghana Project). b) Project description The objective of the Project is to improve access and quality of services in priority programs in health and education sectors in approximately thirty (30) poor districts in Ghana by strengthening accountability and transparency in the budget process by 2018. The Project consists of the following three parts: Part one: Establishing Enabling Environment for Social Accountability in Ghana Part two: Integrating Budget Monitoring With Service Delivery Outcomes Part three: Project Management and Knowledge and Learning 2. Accounting policies The following are the significant accounting policies adopted in the preparation of these financial statements. • Basis of preparation • Basis of measurement The financial statements have been prepared under the historical cost convention . • Presentation of financial statements • Functional and presentation currencies The financial statements are presented in United States Dollars (US$) which is the reporting currency for the financial statements. 7 I SEND-GHANA MAKING THE BUDGET WORK FOR GHANA PROJECT GPSA GRANT #: TF018055 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2016 • Transactions and balances Transactions in foreign currencies are converted at the rate ruling on the day the transaction took place. Current assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at the balance sheet date and property, plant and equipment translated at the rate of exchange ruling at the time of acquisition . Gains or losses arising on foreign currency transactions are credited to or charged against recurrent expenditure in the period in which they arise. Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate, when it is probable that the future economic benefits associated with the item will flow to the Project and the cost of the item can be measured reliably. All other repairs and maintenance expenditures are charged to the statement of sources and uses of funds during the financial period in which they are incurred. • Depreciation No depreciation is charged in the financial statements. • Income Income is recognised on cash basis and credited directly to the respective donors account. 8 I SEND-GHANA MAKING THE BUDGET WORK FOR GHANA GPSA GRANT#: T018055 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2016 14 months ended 2016 2016 2015 3 International Development Agency Current Cumulative Cumulative (IDA) Grant year US$ US$ US$ Receipt from IDA 249,975 499,950 249,975 ------ -------- 249,975 499,950 249,975 ======= ======= ======= 4 Accountable Imprest 2,949 5 Cash and bank balances Designated account 77 ,439 54, 763 Operational account (Accra Ced i 2) 30,601 1,434 108,040 56,198 ======= 9 I EGALAAND ASSOCIATES (CHARTERED ACCOUNTANTS & BUSINESS ADVISORS) BRANCH OFFICE 14, Abeka Road P.O. Box 441 Tesano-Accra Tamale P. 0 . Box AN 16626 Tel.: 037,20-22549 Accra-North, Ghana Fax.: 233 (0) 302 229358 Tel: 233 (0)302 222199 E-mail: enquiry@eaaghana.com 233 (0) 302 268458 www.eaaghana.com 233 (0) 302 268424 SEND GHANA MAKING THE BUDGET WORK FOR GHANA PROJECT INDEPENDENT AUDITORS' REPORT TO SEND-GHANA Report on the designated account We have audited the Designated Account Statement of Making the Budget Work for Ghana Project for the year ended 31st December 2016 set out on page 12, established under the provisions of the Grant Agreement No. TF018055. Project management's responsibility for the designated account SEND-GHANA is responsible for the preparation and fair presentation of the Designated Account Statement in accordance with World Bank financial reporting guidelines. This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of the Designated Account Statement that are free from material misstatement, whether due to fraud or error, selecting, and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances. Auditors' responsibility Our responsibility is to express an independent opinion on the Designated Account Statement based on our audit. We conducted our audit in accordance with International Standards on Auditing . Those standards required that we comply with ethical requirements and plan and perform our audit to obtain reasonable assurance that the Designated Account Statement is free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the Designated Account Statement. The procedures selected depend on the auditor's judgment, including the assessment of risks and material misstatement of the Designated Account Statement, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the Designated Account Statement 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. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the management, as well as evaluating the overall presentation of the Designated Account Statement. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. 10 I PARTNERS: I. Egala I E. N. 0. Dodoo IA. Abugri I SEND-GHANA MAKING THE BUDGET WORK FOR GHANA PROJECT GRANT#: TF018055 INDEPENDENT AUDITORS' REPORT TO (CONT'D) Opinion In our opinion Making the Budget Work for Ghana Project funds received from International Development Agency (IDA) through the Designated Account have been properly accounted for and withdrawals were made for the purposes of the project in compliance with the provisions of the Grant Agreement Number TF018055. Idris Egala - ICA/P/1168 Egala & Associates (ICAG/F/2017/135) Chartered Accountants 14 Abeka Road, Tesano PO Box AN 16626 Accra North, G / a J ;;? Date /J / 1 . 11 I SEND-GHANA MAKING THE BUDGET WORK FOR GHANA GPSA GRANT#: T018055 DESIGNATED ACCOUNT STATEMENT FOR THE YEAR ENDED 31ST DECEMBER 2016 2016 2015 US$ US$ Opening balance 54,763.16 95.09 Add remittances during year 249,975.00 249,975.00 --------------- --------------- Total unutilised remittances 304,738 .16 250,070.09 Less: Transfers to Cedi account 225,000.00 190,000.00 Direct dollar expenses 1,900.00 4,436.94 Bank Charges 399.50 869.99 227,299.50 195,306.93 Closing balance 77,438.66 54,763.16 --------- 12 I