E R Gurda, Qf Sierra Leone 's EconolIg Secu1rity 25 June 2021 The Team Lead Project Fiduciary Management Unit (PFMU) 13A Howe Street Freetown Dear Sir, SUBMISSION OF- FINxAL ADITED FINANCIAL TATEMNTFO%64ONH PERIIODAENING TH icp-APRIL 2021 _- STRE4GTHEFN1NG_ COMMUrNITY MOBLIZTIO AN LOAL OUCILS VICE EIEYINPS BL CONTPENTTPROJECT 'S BL We forward herewith two (2) bound and two (2) unbound copies of the Final audited Financial Statements for the above Mentioned period for your retention. Thank you for your co-operation and that of your staff that culminated in the successful conclusion of the audit process. Yours faithfull F/AUDITOR GENERAL Headquarter: 2,d Foor, Lotto Building Phone: +232 22 226399/229247 E-mail: info@auditservicegov.sl Tower Hill, Freetown, Sierra Leone, West Africa Mobile: +232 78 777991 Web: wwwauditserviceovsi A UDIT OF FIVANCIAL STA TMENTS FOR THE STRENTHENIN COMMUNIrYMOIIJZA TJOV AND LOCAL COUNCfILSSERfcE DELI~ERYIÆ POST EBOL A CONTKNT PROJECT Foe THE 6 MONTHS PERIOD EDIN 30 APRIL 2021 SffW LOH Steltfhemg ranm,gd b oirio afldFlr/Onc* Sr l it fat t t flomnaIStaarej fur the isamothersps;,,s3AprI;l2I Contents Page (s) General Information Report of the Auditors 2-5 Background to the Project 6-7 Statement of Management's Responsibilities 8 Statement of Resources and Expenditure (By Component) 9 Statement of Resources and Expenditure (By Category) 10 Notes to the Financial Statements 11-12 Statement of Comprehensive Income 13 Statement of Financial Position 14 - Statement of Cash Flows 15 Report of the Auditors on the Special Account Statement 16 Special Account Statement 17 Stongth7ing Community Srbilkation andfLolofounds Sr vice Deivery in Post Ebf0CntEnt Aoject ft08flialStatemENS for the IF months periodedn 19 Apd 2021 GENERAL INFORMATION Official Address Project Fiduciary Management Unit (PFMU) 13A Howe Street Freetown Team Lead Mr. Alpha I Sesay Bankers Bank of Sierra Leone Auditors Audit Service Sierra Leone 2nd Floor, Lotto Building Tower Hill Freetown Sierra Leone rR7fV7f Strllithn1ig Communy HobiZBtion adl RL Concils Skre Dive h7 Post bok CtAt P01= Financif/Statements for dm /moo antndingh 3Y 4r/2021 Audit of the Strengthening Community Mobilization and LC Service Deliverq in Post-Ebola (JSDF) performed by the Auditor General of the Republic of Sierra Leone Addressee: The Team Lead- PFMU Date: 22nd June 2021 Dear Sir, Unqualified Opinion I have audited the financial statements of Strengthening Community Mobilisation and LC Service Delivery in Post-Ebola (JSDF) for the 16 months period ending 30th April 2021. These financial statements comprise a statement of cash receipts and payment for the period ending, and a summary of significant accounting policies and other explanatory information as set out on pages 11 to 12. In my opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Strengthening Community Mobilization and LC Service Delivery in Post- Ebola (JSDF) for the 16 months period ending 30 April 2021, and (of) its financial performance and its cash flows for the year then ended. Basis for Opinion We conducted our audit in accordance with the International Standards of Supreme Audit Institutions (ISSAI). Our responsibilities under those standards are further described in the Auditor's 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 in Sierra Leone, 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. 2 L 8 M1. &StrengtheulogVomnityaifalikation audlcca/Concils Service 7ei1veryhi Post Ebulh Con tent Pn71'ct ilUicia/Sttemeols for th &5 monthseriod endi7 J1 Aril2021 Key Audit Matters Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. For the period under review, there were no key audit matters identified. Responsibilities of Management and Those Charged with Governance for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements 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. Those charged with governance are responsible for overseeing the entity's financial reporting process. Auditor's Responsibility for the Audit of the Financial Statements My 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 auditor's report that includes my opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with International Standards for Supreme Audit Institutions 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 International Standards for Supreme Audit Institutions, I exercise professional scepticism throughout the audit. I 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 my opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for 3 SUN L hi SenWA9elivery in Post bok eooeRt Projert Finoki&oementvsfordte IS menths;mpero ndag *April2021 one resulting from error, as fraud may involve collusion, forgery. intentional omissions, misrepresentations, or the override of internal controls. * 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 Entity'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 Entity's ability to continue as a going concern. If I conclude that a material uncertainty exists, I am required to draw attention in my auditor's report to the related disclosures in the financial statements or, if su8ch disclosures are inadequate, to modify my opinion. My conclusions are based on the audit evidence obtained up to the date of my auditor's report. However, future events or conditions may cause the Entity 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. I 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 I identify during my audit. I also provide those charged with governance with a statement that I have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on my independence, and where applicable, related safeguards. From the matters communicated with those charged with governance, I determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. I describe these matters in my auditor's report unless law or regulation precludes public disclosure about the matter or, when, in extremely rare circumstances, 4 Straft&nfgffammandy #hbation ndloW,/ncS SforT ef eryl N Post fbilk Content PrVt Financial/Statemnts for th /F months period eAdig 3f April221 I determine that a matter should not be communicated in my report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such comm ion. 4- AUDITO L Date: a- eC 12A 5 StnhlgthengfCommarilyAabilledo, uadluculCouaalsOrytE OcfiVery in Post bok Content Proet flnci/Statements for the19mondsperiodeu pri2021 THE BACKGROUND TO THE PROJECT The Government of Sierra Leone (GoSL) has received grant from the Japan Social Development Fund (JSDF) to support the promotion of social reconciliation within communities that have been divided by the strains caused by the Ebola Virus Disease (EVD) and to strengthen social protection responses by promoting social mobilisation, thus building resilience and protecting families and communities. The Project is expected to support the promotion of social reconciliation within communities that have been divided by the strains caused by the Ebola Virus Disease (EVD) and to strengthen social protection responses by promoting social mobilisation, thus building resilience and protecting families and communities. The Project commenced in June 2017 with an expected end date December 2020. The stated project development objective (PDO) of the Strengthening Community Mobilisation and Local Council Service Delivery in the Post-Ebola Context Project is to respond to the post- EVD needs at the local level in Sierra Leone by building community resilience through EVD sensitisation efforts and social mobilisation activities in the districts most affected by the disease Project Components * Component 1: LC social sensitisation activities (US$1million)- the component seeks to promote social cohesion and resilience through strengthening LC capacity and by implementing community-wide sensitisation meetings, forums and health talks, diminishing the negative effects of Ebola on social trust and providing much-needed support to the victims. * Component 2: Creating social mobilisation mechanisms that improve LC service delivery (US $l.6million- the component focuses on building community resilience in the two districts most affected by EVD by: (i) creating social accountability and community monitoring mechanisms for the effective delivery of social services; (ii) promoting direct citizen engagement in the monitoring of LC services; and (iii) piloting participatory budgeting 6 Strcngthnif ammdy aMobOifOrandlocul/avnds Svr1ce Of7vry1)flaffst Ehold Conten Project Financif Statemnt for tho 19months peRdlodYg 3A A4ril221 Component 3: Project management, M&E and knowledge management (US$0.15 million) - the component focuses on the operational support geared towards project management, M&E and knowledge management. 7 S LMStagth@fmmuityAlailktis edLor CondsSer vice Slivary in Post bolk Cionro ot Finacial/Statements for the 16montmaperMendl,ty 311 4 l2121 STATEMENT OF MANAGEMENT'S RESPONSIBILITIES It is the responsibility of management to prepare Financial Statements for each financial year which should show a true and fair view of the state of affairs of the Project and of its surplus or deficit for that year. In preparing these Financial Statements, the Management is required to: * select suitable accounting policies and apply them consistently; * make judgments and estimates that are reasonable and prudent; * state whether applicable accounting policies have been followed, subject to any material departures disclosed and explained in the Financial Statement; * prepare the Financial Statements on a going concern basis unless it is inappropriate to presume that the Project will continue its activities Management is responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Project. They have a general responsibility for such steps as are reasonably available to them to safeguard the assets of the Project and to prevent and detect fraud and other irregularities. On behalf of Management Chair - ro echnical Steering Committee Team Lead- PFMU 8 StrWnfhlbmokg Cmm7A11y Noiltmin endlocW H CounchIL SEr VIC. felivery i Post (bole Content Poject FinMCi/Statements for the 1Vmolkspfdendig April2021 STATEMENT OF RESOURCES AND EXPENDITURE (BY COMPONENT) 16months period ending 2019 30 April 2021 Notes US $ US $ Opening Bank Balance: IDA Special Account 325,991.94 84,804.05 Sub-Grant 142,644.58 - 468,636.52 84,804.05 Resources Receipts into IDA Special Account 974,390.32 1,107,999.68 Total 1,443,026.84 1,192,803.73 Expenditures by Components: COMPONENT 1: Local Council Social Sensitisation 135,227.14 525,057.99 COMPONENT 2: Creating Social Mobilisation Mechanisms that Improve Local Service Delivery 1,123,109.53 183,096.11 COMPONENT 3: Project Management 180,825.75 16,013.11 1,439,162.42 724,167.21 Results for the period 3,864.42 468,636.52 Represented by: IDA Special Account 3,864.42 325,991.94 Leones Account - 142,644.58 3,864.42 468,636.52 These Financial Statements were approved on...............................................................2021 ........................ ........ ...a.................. Chairman, Project Technical Steering Committee ....................... ..... . ........ Team Lead 9 &w1. g Cmmuni1y AffbiliZ.tiof Wedio.eouelS Serier= 0very to POst bok Cntenit A011 Fin1ridutatements for the /,f matsad adg 7 Ari2121 STATEMENT OF RESOURCES AND EXPENDITURE (BY CATEGORY) 16months period ending 2019 30 April 2021 Note US$ USS Opening Bank Balance: IDA Special Account 325,991.94 84,804.05 Sub-Grant 142,644.58 . 468,636.52 84,804.05 Resources Receipts into IDA Special Account 974,390.32 1,107,999.68 Total 1,443,026.84 1,192,803.73 Expenditures by Categories: Consultant Services 94,317.80 16,013.11 Training and Workshop 161,602.31 346,346.68 Goods 310,615.96 170,625.42 Sub Grants 802,971.98 191,182.00 Operating Costs 69,654.37 - 1,439,162.42 724,167.21 Results for the period 3,864.42 468,636.52 Represented by: IDA Special Account 3,864.42 325,991.94 Outstanding Advances (Sub-Grant) - 142,644.58 3,846.42 468,636.52 These Financial Statements were approved o ...............................................................2021 ........................ . . . ................ .. Chairman, Project Technical Steering Committee ........................... .... ... . . Team Lead 10 SE 8 UN St~I'I&AsNg Co7mm17ity Ho ffdLati 71ffid4Uf/Co1eS SericeBffliv idPr bkCnrt Pn,a REdl StateMents flr & i months period dhy 24 4r3 1 22/ NOTES TO THE FINANCIAL STATEMENTS (Continued) 16months 2019 period ending 30 April 2021 1 Deferred income US$ US$ Opening balance 468,636.52 84,804.05 Funding received 974,390.32 1,107,999.68 1,443,026.84 1,192,803.73 Released to the income statement (Total (724,167.21) Expenditure) (1,439,162.42) Balance as at 31 December 3,86.42 468,636.52 2 Cash and cash equivalents IDA Credit -Special Account as at 31 Dec 3,864.42 325,991.94 Outstanding Advances (Sub-Grant) - 142,644.58 3,864.42 468,636.52 3 Cash paid to suppliers and employees Total Expenditure 1,439,162.42 724,167.21 12 SAWAE0trfhnAEIUf fffn7MM,#ahc1lhwita cUfl,& O/Bh PosttfhakLraflent,-a1 NOTES TO TUE FINANCIAL STATEMENTS (Continued) - Additional disclosures 4 STATEMENT OF COMPREHENSIVE INCOME 16months Note period ending 2019 30 April 2021 us $uss$ Income Funding from Donors 1 1,439,162.42 724,167.21 Expenditures by Categories: Consultant Services 94,318.80 16,013.11 Training and Workshop 161,602.31 346,346.68 Goods 310,615.96 170,625.42 Sub Grants 802,971.98 191,182.00 Operating Costs 69,654.37 ---1,439,162.42 724,167.21 Results for the period 13 SStrlstkmnp Clmmurn,rMbiltifadodC,cuchSe,s,rt IdAuy 1 Pas thu/i Cmotea Prakt /?ihac atemunts frs,h I /mnhpe,h,Itdnh4sgbri,zi NOTES TO THE FINANCIAL STATEMENTS (Continued) - Additional disclosures 5 STATEMENT OF FINANCIAL POSITION World Bank Funding 16months period Notes ending 30 2019 April 2021 Assets usS US$ Cash and cash equivalents 2 3,864.42 468,6362 3,864.42 468,636.52 Funding and Liabilities Deferred income 1 3,864.42 468,636.52 3,864.42 468,636.52 14 NOTES TO THE FINANCIAL STATEMENTS (Continued) - Additional disclosures CASH FLOW STATEMENT 16months World Bank Funding Note period ending 30 2019 April 2021 Operating activities US$ US$ Cash receipt from third parties Cash paid to suppliers and employees 3 1,439,162.42 724,167.21 Cash flows from operating activities 1496427,7. 1,439,62.42724,167-21 Financing activities Funding received 1 974,390.32 1,107,999.68 Cash flows from financing activities 974,390. 1,107,99.68 Net increase/decrease in cash and cash equivalent (464,772.10) 383,832.47 Cash and Cash equivalent at the start of the year Cash and cash equivalent at the end of the year 3,864.42 468,636.52 15 Sitai thLtn Comtrf&etinadLr/oaesSmn ly inFPost EolaetaConn PIVa fin&nc&1Statemen7ft9sfortheIEfmonthsP111d.7idogff 714,,V,1gff REPORT OF THE AUDITORS ON THE SPECIAL ACCOUNT STATEMENT, US DOLLAR ACCOUNT NUMBERO112008O24 I have audited the accompanying Special Account numbered 0112008024 established under the provision of the World Bank Funding Programme for the 16 month period ending 30t April 2021 as set out on page 16 I conducted the audit in accordance with the Standards of the International Organization of Supreme Audit Institutions (INTOSAI) and the International Federation of Accountants (IFAC). Those Standards require that I plan and perform the audit to obtain reasonable assurance that the Special Account statements are free from material misstatement. The accompanying Special Account Statement was prepared on the basis of cash deposited and withdrawals for the purpose of complying with the project agreement. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion. Opinion In my opinion, the receipts are properly accounted for, and the withdrawals were made for the purpose of the Project in accordance with the Grant agreement and World Bank Funding Programme disbursement procedures. The accompanying special account statement gives a true and fair view of the ending balance for for the 16 month period ending 301a April 2021. In accordance with the provisions of the terms of reference for the audit, I confirm as follows: * Withdrawals from the Special Account during the period under review were made for eligible expenditure. * The Special Account of the Project has been maintained in accordance with the provisions of the financing agreement. mi AUDI L Date 16 SkR L! &StdangtheninghCommunitypaob&the sadzoco,,lmndgs Arvkg OBeharyla Tst 1ala Cfntfntfrojct finaciStaSMents for thd/monthsp*ndig 35 Apri2021 REPORT OF THE AUDITORS ON TE SPECIAL ACCOUNT STATEMENT, US DOLLLAR ACCOUNT NUMBER 0112008024 SPECIAL ACCOUNT STATEMENT World Bank Funding Account No: 112008024 Depository Rank Bank of Sierra Leone Address: Siaka Steven Street Related Credit Agreement - TFO A4737 Currency: United States Dollars 16months period ending 30 April 2019 2021 Part A- Account Activity US$ US$ Opening Balance 1st January 2020 468,636.52 84,804.05 Replenishment 974,390.32 1,107,999.68 Amount withdrawn (1,439,162.42) (724,167.21) Ending Balance 3,864.42 468,636.52 17 0 0 o - u o bO tÖ 3 r r M~ CL - U- u. 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