Ni GERIAEXILLCTIVE INDUSTRIESTRANSPARENCY INITIATIVE(NEITI) WORLD BANK REPORTING COMPLIANCE GRANT (P 162344). AUDIITED REPORT & FINANCIAL STATEMLENTS FOR THE YEAR ENDED 31sr DECEMBER,2018 Prepared bv: OLUFEMI ADENIJI & CO (CIARIRED ACCOUNTANTS) OLADAYO HOUSE No 9 Summit Avenue, Oke-Agala Estate, Vine Branch Church Area, Off Queen Elizabeth Road, Mokola Ibadan. Oyo State Telephones: 08033283589, 08180764030. E-mail: femadeniji 2002@yahoo.com. Website: www.olufemiadenijiandco.com NIGERIA EXTRACTIVE INDUSTRI ES TRANSPARENCY INITII7'VE WORLD BANK REPORTING COMPLIANCE GRANT (P 162344). TABLE OF CONTENT Grant Information Profile 3 Significant Accounting Policies 4 Report of Auditors 5 Statement of Financial Position 6 Statement of Financial Performance 7 Statement of Cash Flow 8 Notes to the Financial Statement 9 NTGERIA EXTRACTIVE INDUSTRIES TRANSPARENCyINITIATIVE (NEIff) WOR LD BANK REPORTING COMPLIANCE GRANT(P162344). THE GRANT MANAGEMENT TEAM 1 MrWaziri Adio Executive SecretaryNEITI/ Client's Coordinator 2. Mr. Donald Tyoachimin Project Coordinator 3. Mrs. Bukola Joseph Project Accountant 4. Mr. Ahmed Hussaini Abubakar Procurement Expert BANKER: Central Bank of Nigeria PROJECT AUDITORS Olufemi Adeniji and Co (Cliatered Accountant) OLADAYO HOUSE No 9, Summit Avenue, OkeAgala Estate, Vine Branch Church Area, Off Queen Elizabeth Road, Mokola, Ibadan, Oyo State, Nigeria. 3 THE NIGERIA pEXTRACTI IDUSTRIES TRANSPARENCY INfTIATIVE NEIfI} XVOR LD BANK REPOT1zJNG(0.N(I- I A NCE GRANT (P 162344). ACCOUNTING POLICIES STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES FOR THE YEAR ENDED 31ST DECEMBER. 2018 The following are the summary of significant accounting policies which have been adopted by the entity in the preparation of its fnancial statements. a) BASIS OFACCOUNTING The Financial Statements are prepared under the historical cost convention. b) INCOME: Grant received from World Bank are accountable for on cash basis c) FOREIGN CURRENCIES: Transactions in foreign currencies are translated into Naira at the rate of exchange ruling at the transaction date. Assets and Liabilities in foreign currencies are converted to Naira at the exchange rate ruling at the Balance Sheet date.Gain/ Losses from the conversion are credited/debited to the Income and Expcnditure Account. d) STATEMENT OF COMPLIANCE WITH IPSAS The Financial statements set out above are in compliance with the requirements of the International Public SectorAccounting Standards (IPSAS), where applicable subject to the statement of accounting policies disclosed above. 4 OLUFEMI ADENIJI & CO. LAZOO3593 (Chartered Accountants) Abu] ja O nice Lagos Office Ibadan Office House 10, Zone C, 4, Shanu Street, OLADAYO HOUSE Near AMAC Hospital, Afariogun Way, No 9, Summit Avenue, Apo Resettlement, Oke Agala Estate, Vine Branch Church Area, Abuja. Ikeja, Lagos. Off Queen Elizabeth Road, Mokola, Ibadan. Tel: 08180764030 Tel: 08033283589 Tel: 08033283589 www.olufeniadenijiandco.con ,w E-mail: femadeniji2002@yahoo.com ALL CORRESPONDENCE SHOULD BE DIRECTED TO IBADAN OFFICE AUDITORS' REPORT TO THE BOARD OF NIGERIA EXTRACTIVE INDUSTRIES TRANSPARENCY NTIATIVE (NEIT) ON WORLD BANKREPORTING COMPLIANCE GRANT (P162344) FOR THE YEAR ENDED 31ST DECEMBER, 2018 We have audited the attached Financial Statements of World Bank Grant for NEITI for the year ended 31st December, 2018 which have been prepared on the basis ofthe Accounting Policies on page 4. RESPECTIVE RESPONSIBILITIES OF THE MANAGEMENT AND THE AUDITORS. The Management of the Fund is responsible for the preparation of financial statements in accordance with International Public Sector Accounting Standards (IPSASs). It is our responsibility to form an independent opinion, based on our audit, on those statements and report our opinion to you. BASIS OF OPINION We conducted our audit in accordance with International Standards on Auditing (ISAs). Those ISAs require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatements. An audit includes examination, on a test basis, of evidence supporting the amounts and disclosures in the financial statements. It also includes an assessment of any significant estimates and judgments made by the management on the preparation of the financial statements and ofwhether the accounting policies are appropriate to the entity's circumstances, consistently applied and adequately disclosed as well as evaluating the overall financial statements presentation. 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 from material misstatements, whether caused by fraud, error or other irregularities. In forming our opinion, we also evaluated overall adequacy of the presentation of the information in the financial statements, and assessed whether Fund's books of accounts had been properly kept. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. OPINION In our opinion, the financial statements give a true and fair view of the financial position of the World Bank Grant to NEITI as at 31st December 201"ffid of its fimancial performance and its cash flows for the period ended in accordance with International P e Sctor Accounting Standards. OLUFEMi ADENij FCA,FRC/2013/ICAN/000000 o 1 OLUFEMI ADENIJI & CO (CHARTEREDACCOUNTANTS) 3G/ CAN NIGERIA 020 27TH June-, 2019 5 NIGERIA EXTRACTIVE INDUSTRIES TRANSPARENCY INITIATIVE (NEITI) WORLD BANK REPORTING COMPLIANCE GRANT (P162344) STATEMENT OF FINANCIAL POSITION AS AT 31ST DECEMBER 2018 NOTE 2018 2017 ASSETS NAIRA (N) US ($) NAIRA (N) US ($) Bank and Cash Equivalent 3 12,267,021.14 40,130.80 13,708,627.64 44,887.45 NET ASSETS 12,267,021.14 40,130.80 13,708,627.64 44,887.45 FINANCED BY: Accumulated Fund b/frwd 13,708,627.64 44,887.45 134.214,664.62 440,000.00 Surplus/ (Deficit) for the year (1,441,606.50) (4,756.65) (120,506,036-98) (395,1 12.55) 12,267,021.14 40,130.80 13,708,627.64 44,887.45 The Notes on page 9 form part of this financial statement. Mr Donald Tyoachirmin (Project Coordinator)..... ...... ........ Mrs. Bukola Joseph (Project Accountan) . ... 6 NIGERIA EXTRACTIVE INDUSTRIES TRANSPARENCY INITIATIVE (NEITI) WORLD BANK REPORTING COMPLIANCE GRANT (P162344) STATEMENT OF FINANCIAL PERFORMANCE FOR TIE YEAR ENDED 31ST DECEMBER z018 NOTES 2018 2017 NAIRA (N) US ($) NAIRA (N) US ($) RECEIPT Grant 4a 36,579,122.75 119,931.55 - PAYMENT: Consultancy Serviccs - Oil & Gas Audit Sa 31,255,192.50 102,454.82 120,474,339.31 395,287.17 Consultancy Services - Automation 5b 6,780,217.10 22,230.22 - Bank Charges 6 3,675.00 12.04 235,725.70 774.79 TOTAL PAYMENTS 38,039,084 60 124,697,09 120,710,065.01 396,061.96 RECEIPTS LESS PAYMENTS (1,459,961.85) (4,765.54) (120,710,065.01) (396,061.96) Exchange gaim, floss) 18,355.35 8.89 204,028.03 949.41 Surplus/ (Deficit) from Operating Activities (1,441,606.50) (4,756.65) (120,506,036.98) (395,112.55) 7 NIGERIA EXTRACTIVE INDUSTRIES TRANSPARENCY INITIATIVE (NEITI) WORLD RANK REPORTING COMPIAANCE GRANT (P162344) STATEMENT OF CASH FLOW FOR THE YEAR ENDED 31ST DECEMBER 2018 2018 2017 NAIRA (N) US ($) NATRA (N) US ($) Cash Flow from Operating Activities Revenue from Exchange Transaction 36,579,122.75 119,931.55 OUTFLOWS: Financial, Physical and Process Audit: Solid mincrals 2014-2015 - 1,404,959.25 167,094.52 Financial, Physical and Process Audit: Oil and Gas 2014 - 46,066,075.06 152,870.76 Financial, Physical and Process Audit :Oil and Gas 2015 19,716,900.00 64,710.99 23,003,305.00 75,321.89 Financial. Physical and Process Audit :Oil aInd Gas 2016 11,538,292,50 37,743.83 Consultancy services- AutDtion 6,780,217.10 22,230.22 Bank Charges 3,675.00 1204 235,725.70 774.78 TOTAL OUTFLOWS 38,039,084.60 124,697.09 120,710.065.01 396,061.95 Net Cash Flow from Operations (1,459,951.85) (4,765.54) (120,710,065.01) (396,061.95) Cash Flow From Financing Activities: Accumulated Fund 13,708,627.64 44,887.45 134,214,664.62 440,000.00 Exchange gains 18,35535 8.89 204,028.03 949.40 Net incrcasc/ decrease in cash flow 12,267,021.14 40,130.80 13,708,627.64 44,887,45 Represented By: 2_267_02i.T4 4_0_13_._0 13,708,62.64 _.44 _4 Bank and Cash Balances 12,267,021.14 40,130.80 13,708,627.64 . 44,887.45 8 \iGERiA F,XTRACT1t'F. i1rПUSTRT�:5 ТRЛ\SP:IRENCy fAiiTTATI4Е (NF,iТТ) }}'ORLD ПАNК RtPORT1NG COMPLIANГF, GR.4ЧT (Т'762344) NOTFS 7б ТНИ. FINANCIAT, tiTATF,MRN"Г FOR ТНГ yF.AR F;nDF:fl i(ST I)Е('.F.S7KИ;k 2П1R 2ПIR !�� 2017 �оТЕ Э; С,45н AVn cnSн HQuivлт,F.V7 iYrvkA N $аlапсс и Dо11пг Агсоип[ � {) U5 ($} NATRA fN) L'у г$i Э2.2197R129 39,97l,.?,б SП5,G8 1'i,G73$39R' 4д,772.Sб ЭП5.4 Ва:слсе и �raw D��wn Ассnипг .. 47 �д9 R$__ ]$4.54 t05.4К i5.0К7.h2 1 14.КЧ 705.4 __ 12.2б7.П'1 1� dQ130SS) 1д,7ПКb27,64 44,КК?Д5 NuteJ:Gk.tNT ` �- ----.. __ гал�Т Ra1 S7 Fwrd 134,214,б(цi.б2 440.00(l.Пf1 3h,ti 10,П00 ПП Relэlenishmenl> д � I:0,0f16.00 1П4.°_5 ( пr 3b,579.t33.75 II99�I55 3t15,nn 97,7fi4.ббаб2 320fюи.ПП Эг193:з Аа1С1Fw.d �--� I70.793.7A7.37 S59-Ч11.55 134.2э4.Сibд.б2 44П.ОрU,П0 _ _. ---- _ _- tiOTE аа: С(1N5CiLTANCI' SF,RVTCFti �� 1 tilN DF„SCR1T"Г10дf An�[O11�'Г {УУ AMOLINT ($1 RATF, АM110[�NT(N1 AMf)UNT{�) itAT1; FinзncгaL Phyяical & Praecss Лudit : $пЬд � i ттсглРs-гП14-ZПt' ''.., ' - - - 51.404.959.25 1h7.П94S2 ЭП7.Сд г F��aancial. Рlг�ъiсаl & Ртсеьс Audi� : Oi1 & �. 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