NIGER BASIN AUTHORITY (NBA) EXECUTIVE SECRETARIAT NIGER BASIN WATER RESOURCES DEVELOPMENT AND SUSTAINABLE ECOSYSTEMS MANAGEMENT PROJECT (P-DREGDE) NATIONAL IMPLEMENTATION AGENCY AND NATIONAL FOCAL STRUCTURE OF NIGERIA B.P.: 729, NIAMEY (NIGER) Tt,L. +227 20 31 50 36/37 E-MAIL: SEC-EXECUTIF@ABN.NE CREDIT IDA No 43480-UNI TRANSMISSION COMPANY OF NIGERIA (TCN/PHCN) ANNUAL AUDIT REPORT AND FINANCIAL STATEMENTS Year-Ended 31stDecember 2016 (Project closing) July 2017 'COFIMA 03BP: 400Koono1-B4nin TOL 00 229 2136 04 58 Fax 00 229 21 38 26 24 £*rn calirnbenintOyaoorom es Niger Basin Water Resources Development and Sustainable Ecosystems Management Project (P-DREGDE) IDA Credit No43480-UN] CONTENTS THE INDEPENDENT AUDITORS REPORT ON THE FINANCIAL STATEMENTS ............................ 3 STA TEMENT OF SOURCES AND USES OF FUNDS FOR THE YEAR ENDED 31 DECEMBER 2016 - NA TIONAL IMPLIMENTA TIONA GENCY......................................................................................... 5 STATEMENT OF SOURCES AND USES OF FUNDS FOR THE YEAR ENDED 31 DECEMBRE 2016 - NATIONAL FOCAL STRUCTURE ...................................................................................................... 6 1. G eneralP rojectIn formtio ...............................................................................................................7 1.1 D evelopm ent objective.................................................................................................................. 7 1.2 D escription and institutional arrangem ents...................................................................................7 1.3 Project organization and m anagement .......................................................................................... 8 2. Notes to the financial statements as at 31' December 2016............................................................... 9 2.1. A ccounting policies and m ethods ................................................................................................9 2.2. Comments on the statement of sources and uses of funds of the NIA.......................................10 2.3. Comments on the statement of sources and uses of funds of the NFS.......................................12 3. Statement of expenditures of IDA Credit 43480-UNIfor the year-ended 2016................................ 14 4. Reconciliation of the Designated Account for the year-ended 2016................................................. 15 4.1. Statement of reconciliation of the IDA Designated Account.....................................................15 4.2. Commentary notes on the statement of reconciliation of the Designated Account....................16 A P P E N D IX ........................................................................................................................................... 17 MANAGEMENT REPRESENTATION LETTER ................................................................................... 18 Annual Audit Report and Financial Statements, NIA and NFS ofNIGERIA -y/e 31 December 2016 2 .CORIMA Audit - Expertise Comptable - Conseils COMPAGNIE FIDUCIAIRE DE MANAGEMENT ET D'AUDIT 038P: 4001 Cotonou-Benin Tl. :00 229 21 38 04 58 Fax :00 229 21 38 26 24 E-m: cofimobenin@yahoo.com INSAE:294 8324 123941 RCCMCOTN*RCCM RB/COT/078738 Nd'Inscription 6 OECCA -BENIN: 008 SE To The Executive Secretary Niger Basin Authority (NBA) BP : 729 Niamey - Niger THE INDEPENDENT AUDITORS REPORT ON THE FINANCIAL STATEMENTS Dear Sir, We have audited the financial statements of the Niger Basin Water Resources Development and Sustainable Ecosystems Management Project (P-DREGDE) financed by the IDA, for the year ended 31st December 2016.These financial statements comprise: the Statements of Sources and Uses of funds, the Statement of Expenditures, the Statement of Reconciliation of the Designated Account, Inventory statement and Notes containing the main accounting policies and other explanatory notes. The National Implementation Agency (NIA) and the National Focal Structure (NFS) of Nigeria are responsible for the preparation and fair presentation of these financial statements. This responsibility includes: designing, implementing and maintaining internal control procedures relevant to the preparation and fair presentation of financial statements that are free from material misstatements, whether due to fraud or errors, as well as the determination of reasonable accounting estimates. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing ISA issued by the International Federation of Accountants (IFAC).Those standards require that we comply with ethical requirements and plan and perform the audit so as to obtain reasonable assurance that the financial statements are free from material misstatements. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risk that the financial statements contain material misstatements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the structure relating to the preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, and not in the purpose of expressing an opinion on its effectiveness. An audit also includes assessing 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 financial statements. In performing our audit, we placed a particular emphasis on the concerns expressed in the terms of reference of the engagement, including the implementation of procedures allowing us to ensure that: - The Designated Account has been operated in accordance with the financing agreement and that internal controls procedures over its utilization are reliable; Annual Audit Report and Financial Statements, NIA andNFS of NIGERIA -y/e 3] December 2016 3 Niger Basin Water Resources Development and Sustainable Ecosystems Management Project (P-DREGDE) IDA Credit No43480-UNI - Expenditures paid through the Designated Account and in respect of which withdrawal applications were prepared and submitted to the IDA are supported by sufficient and appropriate supporting documents We believe that our audit provides a reasonable basis for the opinion expressed below. In our opinion, except for the inventory statement not provided by the NIA: - The financial statements audited by us present truly and fairly in all material respects, the financial position of the Project as at 31st December 2016, and the results of its financial activities for the year then ended; - The Certified Statements of Expenditures have been prepared in accordance with the Financing Agreement expenses contained therein fall entirely within the objectives of the Project and were sufficiently supported by appropriate supporting documents; - The Designated Account has not funded any ineligible expenditures and the statement of reconciliation is sufficiently reliable to justify its balance as at 31stDecember 2016. Without qualifying our opinion on this matter, we draw attention to the fact that the NFS has not refunded to NBA its bank balance of USD 781.55 (NGN 236 841.43) at closing of the Project. NFS comments: Cotonou, 27t1'July 2017 On behalf of COFIMA Jean-Claude AVANDE Chartered Accountant Managing Partner Annual Audit Report and Financial Statements, NIA and NFS ofNIGERIA - y/e 31 December 2016 4 Niger Basin Water Resources Development and Sustainable Ecosystems Management Project (P-DREGDE) IDA Credit No43480-UNI STATEMENT OF SOURCES AND USES OF FUNDS FOR THE YEAR ENDED 31 DECEMBER 2016 - NATIONAL IMPLIMENTATION AGENCY 2016 Financial year :RESOURCES0: Notes. Opening cash balance 1 5 526 895,40 Withdrawal Applications (WA) 2 1 081 475,98 Direct Payment (DP) 3 10 765 973,70 Exchange equalisation 4 495,98 TOTAL RESOURCES 17 374 841,06 2016 Financial year EXPENIUE Notes PROJECT DIRECT EXPENSES 5 Fixed assets 10 765 973,70 Goods and works 3 575 114,72 Consultancy services 558 050,82 Operting cost 2431 396,52 TOTAL DIRECT EXPENSES 17 330 535,76 Refund to IDA 6 44 305,30 Closing balance TOTAL EXPENDITURES 1 17 374 841,06 The notes form an integral part of these financial statements. Annual Audit Report and Financial Statements, NIA and NFS of NIGERIA -y/e 31 December 2016 5 Niger Basin Water Resources Development and Sustainable Ecosystems Management Project (P-DREGDE) IDA Credit N043480-UNI STATEMENT OF SOURCES AND USES OF FUNDS FOR THE YEAR ENDED 31 DECEMBRE 2016 - NATIONAL FOCAL STRUCTURE RESOURCES Notes Amount in Naira Opening cash balance 1 60 600,00 Funds received from NBA 2 10 576 805,50 Exchange difference 3 82 483,43 TOTAL RESOURCES 10 719 888,93 EXPENDITURES Notes Amount in Naira EXPENSES Operting expenses 4 10 483 047,50 TOTAL EXPENSES 10 483 047,50 Excess of resources over expenditures 5 236 841,43 TOTAL EXPENDITURES 10 719 888,93 The notes form an integral part of these financial statements. Annual Audit Report and Financial Statements, NIA and NFS of NIGERIA - y/e 31 December 2016 6 Niger Basin Water Resources Development and Sustainable Ecosystems Management Project (P-DREGDE) IDA Credit N043480-UNI 1. General Project Information 1.1 Development objective The Niger Basin Authority (NBA) with the support of the World Bank, and after several consultations with regional stakeholders and Member States, decided to implement the Program of Development of Water Resources and Sustainable Management of Ecosystems in the Niger Basin, abbreviated (P-DREGDE) APL2A. The development objective of the P-DREGDE APL2A is to achieve a sustainable increase in the overall productivity of water resources, to accelerate economic development in the countries of the Niger River Basin. To achieve this objective, the program focuses on: (i) strengthening of institutional capacity at national and regional level as well as the consolidation of regional planning; (ii) rehabilitation of existing water infrastructure; and (iii) restoration of degraded environment in targeted areas that have an effect on the natural resources of the basin 1.2 Description and institutional arrangements The program is implemented by the NBA and the beneficiary countries (implementing entities) with technical and financial support from the World Bank (lessor), the contribution of NBA member states and other development partners. The program duration is twelve (12) years divided into two phases, the first phase of 5 years and a second phase of 7 years. The first phase, for an amount of one hundred eighty-six million (186 million USD) is implemented in five (5) countries along the main course of the Niger River namely: Guinea; the Mali; the Niger; Benin and Nigeria. The three (3) components of the program are as follows: Component 1: Institutional strengthening and capacity building ofNBA This component will strengthen the capacity of the NBA, its National Focal Structures and other institutions involved in the implementation and supervision of the Project. It revolves around three sub-components: 1) capacity building of the NBA; 2) strengthening the capacity of national institutions for managing water resources; and 3) institutional support and capacity building of organizations planning and management of water resources. Component 2 : Rehabilitation, optimization and development of regional infrastructure This component will focus as a priority on the rehabilitation of large hydraulic infrastructures of regional importance, which are in urgent need of rehabilitation and support for regional planning structuring water infrastructure in the basin. It consists of three sub-components: 1) the rehabilitation of the dam and the hydroelectric Kainji; 2) the rehabilitation of the Jebba hydroelectric dam and 3) evaluation of optimization and management of regional water infrastructure options, including dam FOMI in Guinea, Taoussa dam in Mali, Niger Kandadji dam to dam and Zungeru Nigeria. AnnualAudit Report and Financial Statements, NIA and NFS ofNIGERIA -y/e 31 December 2016 7 Niger Basin Water Resources Development and Sustainable Ecosystems Adanagement Project (P-DREGDE) IDA Credit N043480- UNI Conposante3: Sustainable management of selected degraded ecosystems and rehabilitation of small water infrastructure This component involves the rehabilitation of small water infrastructure and sustainable management of ecosystems to stimulate income-generating activities. It comprises five sub- components, namely: 1) rehabilitation and diversification of small dams in Benin and Niger; 2) rehabilitation and development of small-scale irrigation in Benin, Mali and Niger; 3) support the development of traditional fisheries in Mali and Niger; 4) watershed restoration and agro forestry development in Guinea, Benin, Mali and Niger; and 5) operational support to the NIAs. 1.3 Project organization and management At the regional level, a unit of management and coordination, led by a Regional Coordinator and under the responsibility of the Executive Secretariat of the NBA in Niamey, manages the project. A Regional Steering Committee provides guidance and approve, among others, the Work Plan and related budget. The Regional Committee is common to all projects and programs being implemented by the NBA. At national level, the project is under the institutional responsibility of line ministries of the NBA of the five beneficiary Member States of the priority actions of the first phase. National Focal Structures (SFN), permanent technical tools of line ministries NBA who coordinate and monitor the activities implemented in the national section of the Niger Basin, are responsible for the supervision and coordination of National Agencies Execution (NSA). The NIA, one per beneficiary country, through the "make do" approach, are responsible for implementing project activities through subcontracting with national structures (offices, NGOs, private suppliers). The NIAs involved in the implementation of the Project are: " the< Direction Nationale du G6nie Rural )> (DNGR), in Guinea; " the << Agence d'Ex6cution des Travaux d'Infrastructures et d'Equipements Ruraux >> (AGETIER), in Mali; " the< Direction G6n6rale du G6nie Rural >> (DGGR), in Niger; " the<< Centre R6gional pour la Promotion Agricole du Borgou-Alibori > (CeRPA), in Benin; / the Power Holding Company (PHCN), in Nigeria. The Executive Secretary is the Chief Authorizing Officer of the Project. He authorizes withdrawals from the Credit and Grant Accounts in Washington. He also authorizes expenditures and is co-signatory on the Designated Account B of the PMCU of the Executive Secretariat of the NBA. AnnualAudit Report and Financial Statements, NIA and NFS of NIGERIA -y/e 31 December 2016 8 Niger Basin Water Resources Development and Sustainable Ecosystems Management Project (P-DREGDE) IDA Credit No43480-UNI 2. Notes to the financial statements as at 31st December 2016 2.1. Accounting policies and methods The financial statements of the Project have been prepared in accordance with the rules and principles for the preparation and presentation of the accounts as set by the Financial Reporting Council of Nigeria amended where appropriate to meet the specificities of development projects. These financial statements, which reflect the implementation of the project management activities of the NIA of Nigeria, are comprised of : - the statement of sources and uses of funds of the NIA and NFS for the year-ended 31 December 2016; - the statement of expenditures of the NIA - the statement of reconciliation of the Designated Account of the NIA - the notes providing details and explanations of the main items of the financial statements. (i) Reporting currency Project accounts are held in Nigerian Nair. Transactions denominated in foreign currencies (USD) are translated at the spot rate before posting. (ii) Valuation methods The method used for the valuation of items in the financial statements is that of historical cost. (iii) Incomes The resources reported in the accounts consist of funds actually received in the Project bank accounts and direct payments made by the World Bank to contractors. (iv) Expenses The expenses reported in the financial statement are actual expenses incurred within the Project implementation framework. (v) Cash and bank balances It corresponds to the Project cash and bank balances. A bank account was opened to receive project funds which is: IDA Designated Account in USD held at CBN. An account is opened in the name of the Project with the World Bank to monitor the use of the IDA Credit. Movements observed in this account are consistent with those shown in the financial statements of the project. Annual Audit Report and Financial Statements, NIA and NFS of NIGERIA -y/e 31 December 2016 9 Niger Basin Water Resources Development and Sustainable Ecosystems AManagement Project (P-DREGDE) IDA Credit No43480-UNI 2.2. Comments on the statement of sources and uses of funds of the NIA Note 1: Opening cash and bank balances This is the project cash and bank balances available as at 01/01/2016. The detail is as follows: Amount Amount in USD in Naira WA 61 paid to CBN TSA 182 53 172,91 9 677 470 WA 62 paid to CBN TSA 182 213 863,45 38 923 148 WA 63 paid to CBN TSA 182 2566452,84 467 094 417 Interest in November 182 1 907,93 347243 Interest in December 182 23,63 4301 IDA NBA CBN TSA at FBNBank UK 31/12/2015 182 2 835 420,76 516 046 578 Transfer from Acct. 5090203666 to CBN Naira acct. 2 665 194,21 538 877 988 Transfer from Acct. 5090205048 to CBN Naira acct. 15 187,58 3 022 328 Transfer from Acct. 5030009749 to CBN Naira acct. 182 480,51 87452 Transfer from Acct. 5030010073 to CBN Naira acct. 182 10 612,35 1 931 447 IDA NBA CBN TSA Naira acct. 31/12/2015 2 691 474,64 543 919 216 Total 5526 895,40 1 059 965 795 Note 2: Withdrawal Applications (WA) Funds received through WA are intended to replenish the Designated Account. During the year under review the total amount of funds received through withdrawal applications isUSD 1 081 475.98. The detail is as follows: Details Date of payment Amount requested Amount paid in in USD USD WA 64 PHCN 14/06/2016 3 381 475,98 1 081 475,98 Total 3 381 475,98 1 081 475,98 Note 3: Direct Payments These are payments made directly to contractors by the World Bank on the basis of direct disbursement applications submitted by the Project. During the year under review a total of eight (08) direct payments were made by the World Bank for a total amount of USD 10 765 973.70. The details are presented below: AnnualAudit Report and Financial Statements, NIA andNFS of NIGERIA -y/e 31 December 2016 10 Niger Basin Water Resources Development and Sustainable Ecosystems Managenent Project (P-DREGDE) IDA Credit No43480-UNI Beneficiary Type Date of payment Currency Amount paid USD Equivalent COYNE ET BELLIER Direct Payment 27/12/2016 EUR 981 769,92 1025802,30 HYDROCHINA Direct Payment 30/12/2016 USD 5152657,12 5152657,12 COYNE ET BELLIER Direct Payment 27/12/2016 EUR 319 611,27 333 945,84 COYNE ET BELLIER Direct Payment 22/12/2016 NGN 53193 084,30 172118,05 TCN PMU Direct Payment 22/12/2016 USD 460 176,50 460 176,50 HYDROCHINA Direct Payment 16/02/2016 USD 2762478,65 2762478,65 CEINSA CONTRACTAS Direct Payment 16/02/2016 EUR 409192,68 456 536,27 CCIP CONSTRUCTION Direct Payment 16/02/2016 NGN 79 969 082,64 402 258,97 Total 10 765 973,70 Note 4: Exchange equalization These are made up exchange differences arising from the translation of expenditure amounts and bank balances from USD to Naira. The total difference in financial year 2016 is USD-495.98. Note 5: Project direct expenses Project direct expenses are those eligible under expenditures << Category 2 > as defined in the financing agreement. The amount of eligible project expenses for the year ended at 31st December 2016 is USD 17 330 535.76. The detail is as follow: Details Amount in USD Fixed assets 10 765 973,70 Goods and works 3 575 114,72 Consultancy services 558 050,82 Operating cost 2431 396,52 Total 17 330 535,76 Note 6: Refund to IDA For the closing of the Project, a total amount of USD 44 305.30 was refunded to IDA (USD 16 828.73 from the dollar account balance and NGN 8 420 196 at 306.45). AnnualAudit Report and Financial Statements, NIA and NFS of NIGERIA -y/e 31 December 2016 11 Niger Basin Water Resources Development and Sustainable Ecosystems Management Project (P-DREGDE) IDA Credit No43480-UNI 2.3. Comments on the statement of sources and uses of funds of the NFS Note 1: Opening cash and bank balances These are balances available on the bank accounts as at 1s' January 2016. The detail is presented below: . Amount Amount in USD in Naira Bank account in USD 200 0,60 120,00 Bank account in Naira 200 302,40 60480,00 Total 303,00 60 600,00 Note 2: Funds received from the UGCP The amount received during the year under review is Naira 10 576 805.5. The breakdown is as follow: Date Details Rate Amount in USD Amount in Naira 14/03/2016 Funds from NBA PCU 304,00 14 924,00 4 536 896,00 23/03/2016 Funds from NBA PCU 304,50 11 691,00 3 559 909,50 30/06/2016 Funds from NBA PCU 310,00 8 000,00 2 480 000,00 Total 34 615,00 10 576 805,50 Note 3: Exchange difference These are made up exchange differences arising from the translation of expenditure amounts and bank balances frorn USD to Naira. The total difference in financial year 2016 is NGN 82 483.43. Note 4: Operating expenses Operating expenses for the year are broken down as follow: Details Amount in Naira Personnel charges 4 788 000,00 Bank charges 2 047,50 Consumables (office supply) 200 000,00 Internet expenses 128 000,00 Supervision mission 354 000,00 Vehicle repair, maintenance 700 000,00 Fuel & lubricant 716 000,00 NFS Meeting for the year 3 595 000,00 Total .10 483 047,50 AnnualAudit Report and Financial Statements, NIA and NFS ofNIGERIA -y/e 31 December 2016 12 Niger Basin Water Resources Development and Sustainable Ecosystems Alanagement Project (P-DREGDE) IDA Credit No43480-UNI Note 5:Excess of resources over expenditures The closing balance amounted to NGN 236 841.43 and is broken down as follow: Amount Amount Details Rate in USD in Naira Bank account in USD 303,04 300,64 91106,25 Bank account in Naira 303,04 480,91 145 735,18 Total 781,55 236 841,43 Annual Audit Report and Financial Statements, NIA and NFS ofNIGERIA -y/e 31 December 2016 13 Niger Basin Water Resources Development and Sustainable Ecosystems Management Project (P-DREGDE) IDA Credit No43480- UNI 3. Statement of expenditures of IDA Credit 43480-UNI for the year-ended 2016 The statement below summarizes for each Fund Reimbursement Request the nature of the application and the categories of expenditure financed. Cat 2: Amount Amount deducted Amount paid Reception No Type Currency Amount paid Value date requested in USD in USD date 64 WA 3 381 475,98 2 300 000,00 USD 1 081 475,98 1 081 475,98 10/06/2016 14/06/2016 137 DP 981 769,92 EUR 981 769,92 1 025 802,30 20/12/2016 27/12/2016 140 DP 5 152 657,12 USD 5 152 657,12 5 152 657,12 20/12/2016 30/12/2016 138 DP 319 611,27 EUR 319 611,27 333 945,84 20/12/2016 27/12/2016 134 DP 53 193 084,30 NGN 53 193 084,30 172 118,05 17/12/2016 22/12/2016 136 DP 460 176,50 USD 460 176,50 460 176,50 17/12/2016 22/12/2016 122 DP 2 762 478,65 USD 2 762 478,65 2 762 478,65 08/02/2016 16/02/2016 121 DP 409 192,68 EUR 409 192,68 456 536,27 08/02/2016 16/02/2016 120 DP 79 969 082,64 NGN 79 969 082,64 402 258,97 08/02/2016 16/02/2016 Total 2300 000,00 11847 449,68 _ Annual Audit Report and Financial Statements, NIA and NFS ofNIGERL4 -y/e 31 December 2016 14 Niger Basin Water Resources Development and Sustainable Ecosystems Maanagement Project (P-DREGDE) IDA Credit No43480-UN] 4. Reconciliation of the Designated Account for the year-ended 2016 4.1. Statement of reconciliation of the IDA Designated Account (Period fromlst January to 31st December 2016) The following statement summarizes the cash flows on the Project Designated Account held in USD and that of the Auxiliary account in NGN. Description Notes Amount in USD Opening balance 5 526 895,40 Incoming cash resources IDA funds received 1 1 081 475,98 Exchange equalisation 495,98 Available cash resources 6 608 867,36 Cash payments and transfers Cat 2. Expenses: Goods and works, 6564562,06 Consultants services, training, operating expenses 6 564 562,06 Refund to IDA 44305,30 Total disbursements 6 608 867,36 Theoretical closing balance 0,00 Bank statement closing balance as at 31/12/2016 - Difference 0,00 The notes form an integral part of these financial statements. Annual Audit Report and Financial Statements, NIA and NFS ofNIGERIA -y/e 31 December 2016 15 Niger Basin Water Resources Development and Sustainable Ecosystems Management Project (P-DREGDE) IDA Credit No43480- UMI 4.2. Commentary notes on the statement of reconciliation of the Designated Account Note 1: IDA funds received The amount of USD1 081 475.98 represents the funds received frorn the World Bank during the year 2016 under IDA Credit4348-UNI on the Designated Account. The breakdown is as follows: Amount requested Amount paid in Details Date of payment i S S in USD USD WA 64 PHCN 14/06/2016 3 381 475,98 1 081 475,98 Total 3 381 475,98 1 081 475,98 AnnualAudit Report and Financial Statements, IA and NFS of NIGERIA -ly/e 31 December 2016 16 Niger Basin Water Resources Developnent and Sustainable Ecosystenis Management Project (P-DREGDE IDA Credit N043480-UI APPENDIX AnnualAudit Report andFinancial Statements, NIA andNFS of NIGERIA -y/e 31 December 2016 17 I MANAGEMENT REPRESENTATION LETTER 12-alnssion Companzy of9Vigeriha TIFk Teplone: 2348080288802 9Yo. 7, 96m6oist-eet, lVer Site: ittp//Owa.tenpmu.otyOff qretowit Street, 'W4use 2, .46iuja. ef TCN/PMU/WB/ 310 /12017 Date: 13th July, 2017 The Managing Partner, Compagnie Fiduclaire de Management et d'Audit (COFIMA) Cotonou. Dear Sir, NIGER BASIN WATER RESOURCES DEVELOPMENT AND SUSTAINABLE ECOSYSTEMS MANAGEMENT PROJECT (NB: WRDSEMP) MANAGEMENT REPRESENTATION LETTER We confirm that the following representations given to you in connection with your audit of the Niger Basin Water Resources Development and Sustainable Ecosystems Management Project (PDREGDE) implemented by Transmission Company of Nigeria and the National Focal Structure for the year ended 31S December 2016 are made on the basis of enquiries of management and staff with relevant knowledge and experience sufficient to satisfy ourselves that we can properly make the representations to you. We acknowledge our responsibility for the fair presentation of the financial statements in accordance with the provisions of section 4.01 of the Development Credit Agreement (DCA) and the Statements of Accounting Standards issued by the Financial Reporting Council of Nigeria. We confirm, to the best of our knowledge and belief, the following representations: * There have been no irregularities involving management or employees who have a significant role in internal control or that could have a material effect on the financial statements. * We have made available to you all books of account and supporting documentation and all minutes of meetings of 2016. * We confirm the completeness of the information provided regarding the identification of related parties. * The financial statements are free of material misstatements, including omissions. * Transmission Company of Nigeria (TCN) and the National Focal Structure have complied with all aspects of contractual agreements that could have a material effect on the financial statements in the event of noncompliance. There has been no noncompliance with requirements of regulatory authorities that could have a material effect on the financial statements in the event of noncompliance. * We have no plans or intentions that may materially alter the carrying value or classification of assets and liabilities reflected in the financial statements. ENGR. A. J. CIROMA GENERAL MANAGER, PMU NFS INVENTORY REPORT 4510001 Air Condition 2HP Window 1 4510007 Sharp Photocopier Hp 5316 1 4510012 Stabilizer 5,5KVA 2 4510016 Cway Water Dispenser 1 4510019 Fax Machine 1 244200 Office Furniture 4510001 Executive Table 2 4510002 Executive Chair 1 4510003 Office Table 3 4510006 Office Chair 5 4510007 Visitors' Chair 5 4511001 Steel File Carbinet 4 244300 4510005 UPS 2 4510008 Laser jet HP P1006 Printer 1 Mercury Scanning Machine 4510009 CU 200 2 Office Vehicle 1 Toyota RAV-4 1 2 Toyota Hilux 1 / BANK BALANCE: As at today being 251 October 2016, NBA/NFS Bank Account Balance is as stated below; a. TSA United State Dollars Account: $300.64 b. TSA Naira Account: N144,790.18 You may wish to know that both accounts are domiciled at the Central Bank of Nigeria in compliance with the Treasury Single Account Policy of the Federal Government. It is important to also note that the balance of sixty thousand four hundred and eighty (N60,480) only Mopped up into the Central Bank of Nigeria (CBN) Treasury Single Account (TSA) from NBA/NFS Commercial Bank (Zenith Bank PLC) is stillpending at the level of the office of the Accountant General of the Federation (OAGF), though a letter requesting for the transfer of the balance to -NBA/NFS Treasury Single Account (TSA Naira Account) was submitted at the office of the OAGF since 12thl July 2016. V NOTE ON THE BALANCESSTATED ABOVE 1. The balance of $300.64 (USD) was arrived. at after the deduction of sum of $14,924(USD) monetized. See the current statement as attached. 2, The sum of eight hundred thousand naira (N800, 000) only being the two months staff salaries outstanding and the NBA/NFS meeting expenses outstanding of N3,595,000 was also deducted from the naira. TSA Account to arrive at the balance of N144,790.18 stated above.. / LI ST OF OFFICE FILES S /N File Reference Number Description 1 MWR/PRS/S/557/1 NBA/NFS Bank Account 2 MWR/PRS/S/449/1 NBA/NFS Mission & Staff salary NBA/NFS Policy Matter, Budgeting &Staff 2 MWR/PRS/S/447/1 Contract 3 MWR/PRS/S/434/1 NBA/NFS Annual Financial Report 4 MWR/PRS/S/450/1 NBA/NFS Procurement Matters Officers Handing over Officers Taking Over Sign: P ' Sign: Dr. Paul Adalikwu Mrs. Al -jowu Director, PRS 8 Coordinator, Deputy Director (C&P) NBA/NFS Desk Officer, NBA/NFS Sign: Sign: Agbo Fredrick Mike Ornoetlia Accountant, NBA/NFS FMWR 30u October 2016. 30L, October 2016