TARABA STATE GOVERNMENT OF NIGERIA STATE EDUCATION PROGRAM INVESTMENT PROJECT (SEPIP-AF) FINANCIAL STATEMENT FOR THE SIX (6) MONTHS ENDED JUNE 30, 2020 SUNNY OKON & CO (CHARTERED ACCOUNTANTS) TARABA STATE GOVERNMENT OF NIGERIA STATE EDUCATION PROGRAM INVESTMENT PROJECT (SEPIP - AF) WORLD BANK (IDA) CREDIT NO. 58480 FINANCIAL STATEMENTS FOR THE SIX (6) MONTHS ENDED JUNE 30,2020 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 STATE EDUCATION PROGRAM INVESTMENT PROJECT (SEPIP - AF) WORLD BANK (IDA) CREDIT NO. 58480 FINALNCIAL STATEMENTS FOR THE SIX (6) MONTHS ENDED IUNE 30. 2020 CORPORATE INFORMATION PROJECT IMPLEMENTATION UNIT (PIU) Christian Peter Toshi - Project coordinator Simon Bulus - Monitoring and Evaluation Martins Sambo - Project Accountant Miracle S. Mbakwi - Procurement Monica D. Bukuni - Technical Officer Gidado Bello - Auditor Mulak Robertson - Comm. Officer Rashad Adamu Abubakar - Environment and Safe guards Job Julius - EMIS BANKERS Zenith Bank Plc. Jalingo EXTERNAL AUDITORS Sunny Okon & Co. (Chartered Accountants) 94 Moh'd Mustapha Way P.O. Box 514 Jimeta Yola GSM: 08055635688, 08035770136 E-mail: admin@sunnyokonandco.com, sunnyokonandco@gmail.com Website: www.sunnyokonandco.com SUNNY & Co REPORT OF THE AUDITORS TO THE HEAD, TARABA STATE PROJECT FINANCIAL MANAGEMENT UNIT (PFMU) ON THE FINANCIAL STATEMENTS OF THE WORLD BANK ASSISTED STATE EDUCATION PROGRAM INVESTMENT PROJECT (SEPIP-AF) FOR THE SIX (6) MONTHS ENDED JUNE 30, 2020. (CREDIT NO.58480) We have audited the accompanying project financial statements of the State Education Program Investment Project, (SEPIP-AF) for the six (6) months ended June 30, 2020 prepared on the basis of the accounting policies on page 3. The project is financed by the IDA, credit number 58480. Respective responsibilities of the project Management and 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 State Education Program Investment Project-AF Project, for the six (6) months ended June 30, 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 finanqing 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 shd give a true and fair view of the beginning and ending balance and the account activity for the sit (6) months ended June 30, 2020. For; SUNNY OKON & CO (Chartered Accountants) Yola, Nigeria 25th August, 2020 AlJ 4 Engagement Partner: Sunday Sampson Okon FCA, MBA. (FRC/2014/ICAN/00000007288) > 166 Atiku Abubakar Way, Off Idoo Road, Uyo, Akwa-lbom State 'Fel: 08062626078, 08055635688, 08035770136 >94 Mo . Muslapha Way, RO. Box 514, Jimea, Yola. Tel: 0805563 5688, 08035770136. E-mail: adiin@sunnyokoiaindco.com, suiiaysokon@yatoo.com Websile wwwsunyokonaiideoconi > Alkoie 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 STATE EDUCATION PROGRAM INVESTMENT PROJECT (SEPIP - AF) WORLD BANK (IDA) CREDIT NO. 58480 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. STATE EDUCATION PROGRAM INVESTMENT PROJECT - AF WORLD BANK (IDA) STATEMENT OF FINANCIAL POSITION FOR THE SIX(6) MONTHS ENDED JUNE 30.2020 JUNE DECEMBER 2020 2019 NOTES N N Non-Current Assets 1 85,001,288 85,001,288 Special Project Assets 2 5,351,181 5,351,181 Development Expenditure 3 2,327,934,382 1,491,283,281 Cash and Cash Equivalent 4 183 -9444,677 Total Assets 2,418,287,034 1 ,08Q422' FINANCED BY: Project Funding 5 2,418,287,034 1,67608t0427 Pro ordinator Head PFMU 4 TARABA STATE GOVERNMENT OF NIGERIA. STATE EDUCATION PROGRAM INVESTMENT PROJECT - AF WORLD BANK (IDA) STATEMENT OF RECEIPTS AND PAYMENTS FOR THE SIX(6) MONTHS ENDED JUNE 30,2020 NOTE JUNE DECEMBER 2020 2019 Cummulative N x N Opening Balance 94,444,677 179,888,244 - RECEIPTS International Development Association 6 742,206 607 647.712,908 ZA L287,034 Total Receipts 836,651,284 827,601.152 2,418,287,034 PAYMENTS: Consultant Services/Training 3a 800,000 110,935,662 427,810,475 Goods 3b 34,400,000 121,487,288 335,568,969 Works 3b 20,235,184 57,174,740 82,173,225 Grants and Subsidies 3c 740,363,590 384,308,134 1,412,619,724 Operating Cost 3d 41,141,835 58.491.848 161.443.477 Total payments 836,940,609 732,397,672 2,419,615,870 Surplus of Receipts over Payments (289,325) 95,203,480 (1,328,836) Exchange Difference 289,508 (758,803) 1,329,019 Cloding Balance M 94,444,iM7 1M 5 TARABA STATE GOVERNMENT OF NIGERIA. STATE EDUCATION PROGRAM INVESTMENT PROJECT - AF WORLD BANK (IDA) STATEMENT OF SPECIAL ACCOUNT FOR THE YEAR SIX(6) MONTHS ENDED JUNE 30,2020 Account Number: 5070535762 Bank: Zenith Bank Plc Address: jalingo, Taraba State Currency: Us Dollar ($) JUNE DECEMBER 2020 2019 Cummulative $ $ $ Opening Balance 201,792.62 376,346.66 - ADI: IDA Replenishment 2,031,488.91 1,877428.72 7,068,052.22 2,233,281.53 2,253.775.38 7,068,052.22 DEQUCT: Transfer to Drawdown A/C 2,233,281.53 2,051,982.76 6,957,614.22 Direct Payments from Special Account - 438.00 Service Charges - - 110,000.00 Total Payments 2,233,281.53 2,051,982.76 7.068.052.i2 Closing Balance O.M11 217.6 6 TARABA STATE GOVERNMENT OF NIGERIA. STATE EDUCATION PROGRAM INVESTMENT PROJECT - AF WORLD BANK (IDA) STATEMENT OF EXPENDITURE FOR THE SIX(6) MONTHS ENDED JUNE 30. 2020 WD/No Goods, Equipments Operating Grants Teachers & Vehicles Cost. Incentives N N N N N 032 32,336,000 8,241,772 169,000 53,480,000 94,226,772 033 - 15,807,603 1,495,000 93,968,000 111,270,603 034 2,064,000 765,770 82,664,523 29,127,000 114,621,293 035 - 11,992,957 149,167,012 92,761,000 253,920,969 036 - 594,813 212,452,800 7,686,525 220,734,138 037 20,235,184 4.538,920 17,127,718 265M000 42,166822 54.635.184 41.941,835 463,076,053 277,287,525 836,940,597 7 TARABA STATE GOVERNMENT OF NIGERIA. STATE EDUCATION PROGRAM INVESTMENT PROJECT - AF WORLD BANK (IDA) NOTES TO THE ACCOUNTS FOR THE SIX(6) MONTHS ENDED JUNE 30,2020 2020 2019 N N 1 NON-CURRENT ASSETS Motor Vehicle (Note la) 75,147,300 75,147,300 Equipments(Note ib) 9,853,988 9,853,988 85.001,288 85.001.288 a. MOTOR VHICLES 3Nos. Toyota Hilux 75,147,300 75,147,300 75.147.300 75.147.300 b. EQUIPMENTS Internet and Installation 2,700,000 2,700,000 TVS, ACs and Accessories 2,875,450 2,875,450 Printers and Photocopier 1,320,000 1,320,000 Laptops and Accessories 2958,538 2,958,538 9.853.988 9.853.988 2 SPECIAL PROJECT ASSETS Furniture and Fittings 2,619,316 2,619,j16 Equipments 2731,865 2,731,865 5.351.181 5.351,181 3 DEVELOPMENT EXPENDITURE Balance brought forward 1,491,283,281 758,126,806 Consultancy and Training (note 3a) 800,000 110,935,662 Goods and Works (note 3b) 54,635,184 178,662,028 Grants and Subsidies (note 3c) 740,363,590 384,308,134 Operational Cost (Note 3d) 41,141,835 58,491,848 Exchange Loss/Gain (Note 7) (289,508) 758,803 Balance Carried Forward 2,327.934.382 1,491,283.281 a. Consultancy and Training Consultancy Services 800,000 104,219,646 Staff training - 6,716,016 800,000 110,93 b. Goods and Works Goods 34,400,000 121,487,288 Works 20,235,184 57,174,740 54,635.184 178.662.028 8 TARABA STATE GOVERNMENT OF NIGERIA. STATE EDUCATION PROGRAM INVESTMENT PROJECT - AF WORLD BANK (IDA) NOTES TO THE ACCOUNTS FOR THE SIX(6) MONTHS ENDED.JUNE 30, 2020 2020 2019 c. Grants and Subisdies Grants to various schools in the state 463,076,055 85,245,368 Teachers incentives 27-7287,535 299,062,766 74QJ&DO384,308U134 d. Operational Cost Transport and travelling 14,739,543 47,347,376 Contribution to PFMU 700,000 300,000 Salaries and allowances - 3,121,746 Insurance 8,675,020 - Stationeries 561,976 - Entertainment and hospitality 579,006 1,967,815 Vehicle Maintenance 1,800,440 2,380,220 Media and publicity 12,408,040 1,614,046 Internet subscription 743,000 - Utility 100,000 - Bank charges 8341110 1,760,645 41,141.835 58,491,848 4 CASH AND CASH EQUIVALENTS Zenith Bank Plc - Spegial A/c - 69,618,454 Zenith Bank Plc - DrawDown A/c 183 24,826,223 181 94,444,677 5 PROJECT FUNDING Balance brought forward 1,676,080,427 1,028,367,519 IDA Funds(Note 6) 742-206,607 647-712,908 Balance Carried Forward 2,418,287034 1.676.080 427 9 TARABA STATE GOVERNMENT OF NIGERIA. STATE EDUCATION PROGRAM INVESTMENT PROJECT - AF WORLD BANK (IDA) NOTE TO THE ACCOUNTS FOR THE SIX(6) MONTHS ENDED JUNE 30,2020 6 RECEIPTS Date Particulars IDA ($} RATE IDA (N) Total 1/3/2020 IDA Credit 135,480.58 345.00 46,740,800 46,740,800 1/3/2020 IDA Credit 109,908.48 345.00 37,918,426 37,918,426 1/3/2020 IDA Credit 272,921.95 345.00 94,158,073 94,158,073 2/1/2020 IDA Credit 273,120.91 345.00 94,226,714 94,226,714 3/31/2020 IDA Credit 332,235.55 365.00 121,265,976 121,265,976 4/17/2020 IDA Credit 235,604.95 381.00 89,765,486 89,765,486 5/1/2020 IDA Credit 672,011.27 384.00 258,052,328 258,052,328 6/1/2020 IDA Credit 205.22 384.00 78,84 2.031,488.91 742,206,607 742,206,607 10 TARABA STATE GOVERNMENT OF NIGERIA. STATE EDUCATION PROGRAM INVESTMENT PROJECT - AF WORLD BANK (IDA) NOTE TO THE ACCOUNTS FOR THE SIX(6) MONTHS ENDED JUNE 30,2020 7 EXCHANGE DIFFERENCE $ Received Amount Withdrawal Amount Difference Rate (A Rate LB I N N N N N 209,565.22 345.00 72,300,000 345 72,300,000 12,594.20 345.00 4,344,999 345 4,344,999 - 28,909.67 345,00 9,973,836 345 9,973,836 - 217,391.30 345.00 74,999,999 345 74,999,999 - 195,239.13 365.00 71,262,282 368 71,848,000 585,718 37,734.04 365.00 13,772,925 365 13,772,925 - 320,010.49 381.00 121,923,997 381 121,923,997 - 95,863.16 373.05 35,761,914 380 36,428,000 666,086 279,581.15 384.00 107,359,162 382 106,799,999 (559,163) 319,531.25 384.00 122,700,000 384 122,700,000 - 403,133.16 384.00 154,803,133 383 154,400,000 (403,133) 4,162.68 384.00 1,598,469 384 1,598,469 - 289,508 Special Account Closing Balance - Net Exchange Difference 289,508 11