Republic Of Lebanon IU " Ka J I Ministry of Social Affairs I U9 JI 6.139 National Volunteer Service Program |ga.6 .1I z.0I4|i Project Management Unit SJI )l 6b61 July 14, 2015 The World Bank Bourie Housell9, 5th Floor Abdallah Bayhum Street P.O. Box 11-8577 Beirut, Lebanon Attention: Mr. Rene Leon Solano, Task Team Leader Grant # TF010404 National Volunteer Service Program Subject: Audit Report From Inception February 07, 2013 till December 31, 2014 Dear Mr. Solano, In compliance with the World Bank's requirements pertaining to the World Bank Loans and Grants, we attach, for your review, copy of the Audit Report for the period from inception February 07, 2013 till December 31, 2014. Thanking you for your continued support and cooperation, we remain, Sincerely Yours, Marwa El Kik Project Manager AUDIT OF THE FINANCIAL STATEMENT OF THE "NATIONAL VOLUNTEER SERVICE PROGRAM" MINISTRY OF SOCIAL AFFAiRS WORLD BANK GRANT NO.010404 BEIRUT - REPUBLIC OF LEBANON FOR THE PERIOD FROM FEBRUARY 7,2013 TILL DECEMBER 31, 2014 TALAL ABu-GHAZALEH & CO MEMBER OF TALAL ABu-GHAZALEH ORGANIZATION Index Contents: Page Independent Auditor's Report 1 Project Statement of Cash Receipts and Payments 2 Notes to the Project Statement of Cash Receipts and Payments 3-6 TAGI-Akr Talal Abu-Ghazaleh & Co. Global Company for Auditing and Accounting ;. ... 4at , 4 s Alliance with Russell Bedford International More than 120 member & correspondent firms and 280 offices in Europe, the Americas & Asia-Pacific Societe Civile (R.C. 67) ,. U . A.. Certified Public Accountants Independent Auditor's Report To Ministry of Social Affairs National volunteer Services Program Beirut - Republic of Lebanon World Bank Grant No. TF010404 We have audited the accompanying financial statement compromising of the Statement of Cash Receipts and Payments by category of National Volunteer Services Program for the Period from February 7, 2013 (inception) till December 31, 2014. We have also audited compliance with the laws, regulations, guidelines and provisions governed by the Grant Agreement for the period from February 7, 2013 (inception) till December 31, 2014. We conducted our audit in accordance with International Standards on Auditing (ISA). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement and about whether the First Municipal Infrastructure Project has complied with laws, regulations, guidelines and provisions governed by the ( Grant Agreement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statement. An audit also includes assessing the accounting principles used as well as evaluating the overall statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our Opinion: a. the project Financial Statement (PFS) present fairly, in all material respects, the cash receipts and payments of the National Volunteer Services Program for the period from February 7, 2013 till December 31, 2014 in accordance with the International Public Sector Accounting Standards (IPSAS), under the cash basis of accounting; b. 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 withdrawals for the period from February 7, 2013 (inception) till December 31, 2014; c. The project was in all material respects in compliance with the laws, regulations, guidelines and provisions governed by the Grant Agreement. Waref M. Kumayha (License # 1927) Beirut on June 13, 2015 -Pr<4 , ±., nnu-Ghazaleh&i 1 Sanayeh-Al Mansour Bldg. = IES14140r tnil: Tel.: +961 1754 222 FORUNI OF FIRMS + ' 1 Vt Y YJa Fax: +961 1754 222 tagi.com +ill l Va T Y :"L.A P.O.Box: 11-7381, Beirut, Lebanon Tagco.bierut@tagi.com L11,11 :JUJ L Ici - r.vA . l -4 -ON nM en C7N m l 0 GO 00 O i-0 00 0 \ \ e c\ n 00 en ? .D00 -D m > 2 g -tD 0. 1 0~ ; ©= u ..at e- m3 - t -0 i|g o e 3 E e a E e C Q.-JQ QQ.E[- > 0 -Q & [ Ministry of Social Affairs National Volunteer Services Program World Bank Grant No. TF010404 For the period from February 7, 2013 till December 31, 2014 (Amounts are expressed in US Dollar) Note 1: Project Purpose: The purpose of the Agreement states that the World Bank grants the Lebanese Republic a contribution of maximum US$ 2,000,000 as participation towards the realization of the project as per the description of the project and the budget. The National Services Volunteer Program (NSVP) is created to address the issue of the downfall of the volunteering culture in Lebanon and its negative implication on youth employment and social cohesion. The country Partnership Strategy, as well as the Italian development Cooperation Office in Beirut. Unless otherwise agreed by the Ministry of Social Affairs, the World Bank and the Italian Cooperation, The arrangement is expected to be operational throughout a period of three years, and will cease operating thereafter. Below is a brief description of the projects' objectives. The main objective of this project is develop a National Volunteer Service Program that aims at improving social cohesion across communities and regions by increasing youth civic engagement outside for their "safe space". Expanding youth volunteerism will enhance their cross-confessional understanding, reduce their inherited prejudice and improve youth employability for better integration into the labor market through enhanced soft skills. The objective of this project will be achieved by amplifying opportunities for volunteering activities, encouraging youth's involvement in the process, developing the institutional capacity of the MOSA, NGOs, and universities to effectively utilize contribute to communities other than their own. 3 DA RECONCIUATION STATEMENT .oar--C r.C te:remoe . 10404 Azco.·r. rtrter { 7003Éiašš ~Bank:jBanque du Liban I Am=.:n aC.rancec by Wocd Bank (o: Cefir.ancier) 2.0.g 2 te es tota; amount recovereddocurnened by Ward Sank (recovervyp ocss nonnally tegits towards the end rf the projec: 3 EQUALS PRESENT UTSTANDING AMUNT -o A.DVArJCI-D 10 1H- DFSIGNATWD ACCOUNT 4 Amour: in Des:gated Aou at 31.122014.8900 (date per bank statement. copy atacied: 5 Paus ar-.ount af eligibl expenditures documne¶.c[ in attanchec a ppicaton no. P P us amourrs caimred in previous appzcaions not yet credied at cae øf bank statemerr Appbcation no A.ont 4A Sumetal af previous + r ~ 135.764.00_ applications not yt relea 7 EQUAL S TOTAI ADVANCE ACOUNTED FOR B Explanation af any disepancy betwen tctais appeaing on Lines 3 and 7 above (e.g items paid from acourt tut no: yet climed. camed inte:est cediked to the at:=unt. etc 0.00 neresl charges sr January 22. 2014 Da:oe.- - ¯¯¯5teté of Social Affairs 1-C _HE. Rachid Der~as Minister at Social Affairs Rasi,h Derbass Mrs. Marwael Kik Projeel Manager s."- ,rg.: \ames and I riUs 0' Roprecentatves Segnarires Note 3: Cash Receipt ES I" installment (August 31, 2013) 250,000 2sd installment (May 20, 2014) 213,483 363,483 Note 4: Component 1- Direct Non-Labor Expense Budget Actual UPnto Un to 31/12/2014 31/12/2014 Variance us$S US$ NVSP Emanating Project Independent Audit 5,000 - 5,000 Communication Officer 36,000 22,800 13,200 Hardware & Equipment 6,000 - 6,000 Volunteering Conference 10,000 - 10,000 Flyers, Posters, Banners, Food. Transportation, Running cost 12,000 6,133 5,867 Part time administrator 9,000 - 9,000 Develop the on-line portal 21,000 1,966 19,034 Maintenance 4,000 - 4,000 Total Component 1- Direct Non-Labor Expense 103,000 30,899 72,101 Note 5: Component 1- Direct Labor Expense Budget Actual Un to un to 31/12/2014 31/12/2014 Variance US- UsS Us$ NVSP Emanating Project, Project Manager 1 16,000 16,000 - NVSP Emanating Project, Project Manager 2 60,933 52,933 8,000 NVSP Emanating Project, Volunteer Coordinator 44,000 44,000 - NVSP Emanating Project, Procurement Officer 60,000 50,508 9,492 NVSP Emanating Project, Financial Officer 33,000 33,000 - NVSP Emanating Project, Project Assistant 1 5,550 5,550 - NVSP Emanating Project, Project Assistant 2 18,000 16,072 1,928 Training and Capacity Building CSO on Volunteer management 15,000 - 15,000 Total Component I- Direct Labor Expense 252,483 218,063 34,420 Note 6: Component 1- Indirect Expense Budee Actual Un to Un to 31/12/2014 31/12/2014 Variance US$ is Us Certification Material 3,000 - 3,000 Equipment/Hardware & Maintenance 15,000 - 15,000 NVSP emanating Project Operating Cost 2,640 1,136 1,504 Total Component 1- Indirect Expense 20,640 1,136 19,504 Note 7: Component 2- Direct Non-Labor Expense Budzet Actual Un1to UP to 31/12/2014 31/12/2014 Variance US$ Us$ us$ Batch I (NGOs) 660,000 660,000 Batch 2 (Universities) - - - Other Expenses 5,000 3,000 2,000 Youth Summer Group - - - Week End volunteering Program 110,000 72,330 37,670 Total Component 2- Direct Non-Labor Expense 775,000 75,330 699,670 Note 8: Component 3- Direct Non-Labor Expense Budget Actual UPnto UPnto 31/12/2014 31/12/2014 Variance us$ US$ US$ M & E Officer 36,000 9,108 26,892 M & E Firm 102,000 - 102,000 Other Expenses 15,000 - 15,000 Total Component 3- Direct Non-Labor Expense 153,000 9,108 143,892 Note 9: Cash at Central Bank The differences between the Central Bank account amounted 31,892 USD and the book balance amounted of 28,947 USD are checks issued not withdrawn yet amounted of 2,945 USD 6