WORLD BANK ECOWAS COMMISSION (GRANT NO: TF0A2770) STRENGTHENING DISASTER RISK REDUCTION COORDINATION, PLANNING AND POLICY ADVISORY CAPACITY OF ECOWAS PROJECT AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2018 RBC BBC PROFESSIONALS CHARTERED ACCOUNTANTS ECOWAS COMMISSION (GRANT NO: TFOA2770) STRENGTHENING DISASTER RISK REDUCTION COORDINATION, PLANNING AND POLICY ADVISORY CAPACITY OF ECOWAS PROJECT AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2018 CONTENTS PAGES General Information 2 Report of the Independent Auditors 3 Statement of Financial Performance 5 Statement of Financial Position 6 Statement of Net Asset 7 Statement of Cashflows 8 Notes to the Financial Statements 9 Schedule to the Financial Statements 13 1 ECOWAS COMMISSION (GRANT NO: TFOA2770) STRENGTHENING DISASTER RISK REDUCTION COORDINATION, PLANNING AND POLICY ADVISORY CAPACITY OF ECOWAS PROJECT AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2018 PROGRAMME'S OFFICIALS, PROFESSIONAL ADVISERS, ETC IMPLEMENTING OFFICE: ECOWAS Commission 101, Yakubu Gowon Crescent Asokoro District Abuja PROJECT MANAGEMENT TEAM: Mr. Vafolay Mbandoe Tulay - Commissioner, General Admin. & Conference Dr. Siga Fatima Jagne - Commissioner, Social Affairs and Gender Dr. Sintiki T. Ugbe - Supervisor Project Mr. Babacar Ndiaye - Director of Finance (Financial Reporting & Grants) Dr. Daniel Eklu - Supervisor, General Administration Mr. Mohammed Ibrahim - Project Coordinator/Management Mr. Chukwuka Nwacheli - Head of Division, Grants Mr. Seydou Bangoura - Project Procurement Officer Mr. Essa Khan - Project Consultant DRR Policy and Governance Mr. Bagayoko Adam - Project Consultant Flood Management FOCAL PERSONS Mr. Mohammed Ibrahim - Project Coordinator/Management Mr. Chukwuka Nwacheli - Head of Division, Grants Mr. Seydou Bangoura - Project Procurement Officer BANKERS: Zenith Bank Plc INDEPENDENT AUDITORS: BBC PROFESSIONALS (Chartered Accountants) Charter House 7, McNeil Road, Sabo,Yaba Lagos 2 n(S o REPORT OF THE INDEPENDENT AUDITORS TO THE SUPERVISORY BOARD OF ACP-EU NATURAL DISASTER RISK REDUCTION PROJECT (GRANT NO: TF0A2770) Financial statements We have audited the financial statements of ACP-EU NATURAL DISASTER RISK REDUCTION PROJECT (GRANT NO: TF0A2770 - Strengthening Disaster Risk Reduction Coordination, Planning And Policy Advisory Capacity Of ECOWAS Project) set out on pages 5 to 12, which comprise the statement of financial position as at 31 December, 2018, the statement of Financial Performance, the statement of Net Asset and the statement of cash flows for the year then ended, a summary of significant accounting policies and other explanatory information. Opinion In our opinion, the financial statements give a true and fair view of the financial position of ACP-EU NATURAL DISASTER RISK REDUCTION PROJECT (GRANT NO: TF0A2770 - Strengthening Disaster Risk Reduction Coordination, Planning And Policy Advisory Capacity Of ECOWAS Project) for the period 1 January, 2018 to 31 December, 2018 and of its financial performance and cash flows for the period then ended in accordance with International Public Sector Accounting (IPSAS), the requirements of the Grant Support Agreement, ECOWAS Financial Regulation and the Financial Reporting Council of Nigeria Act No. 6, 2011. We conducted our audit in accordance with International Standards on Auditing (ISAs). 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 Commission in accordance with the Institute of Chartered Accountants of Nigeria (ICAN) Professional Code of Conduct and Guide for Accountants, which is consistent with the International Ethics Standards Board for Accountants Code of Ethics for Professional Accountants (Part A and B), together with other ethical requirements that are relevant to our audit of the financial statements in Nigeria, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Other Information The Project Officials are responsible for the other information. The other information does not include the financial statements and our auditor's report thereon. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we have performed on the other information that we obtained prior to the date of this auditor's report, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Responsibilities of the Project Officials for the Financial Statements The Project Officials are responsible for the preparation and fair presentation of the financial statements in accordance with International Public Sector Accounting, the requirements of the Grant Support Agreement, ECOWAS Financial Regulation, Financial Reporting Council of Nigeria Act No 6, 2011, and for such internal control as the Officials determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Project Officials are responsible for assessing the Project's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Officials either intend to cease operations, or have no realistic alternative but to do so or in the event that the project life span comes to an end. 3 PrimeGloba Auditor's Responsibilities for the Audit of the Financial Statements Our 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 our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs 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 ISAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We 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 our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. * 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 Project's internal control. * Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Project Officials. * Conclude on the appropriateness of the Officials' 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 Project's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Association 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. We also provided those charged with governance with a statement that we 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 our independence, and where applicable, related safeguards. Report on Other Legal and Regulatory Requirements i We have obtained all the information and explanation which to the best of our knowledge and belief were necessary for the purpose of our audit; ii The Project has kept proper books of account, so far as appears from our examination of those books; and iii The Project's statement of financial position and statement of financial performance are in agreement with the books of account and returns. Lagos, Nigeria Everestus Itodo, FCA 27 June, 2019 FRC/2013/ICAN/00000002513 For: BBC PROFESSIONALS (Chartered Accountants) 4 ECOWAS COMMISSION (GRANT NO: TFOA2770) STRENGTHENING DISASTER RISK REDUCTION COORDINATION, PLANNING AND POLICY ADVISORY CAPACITY OF ECOWAS PROJECT Statement of Financial Performance For the year ended 31 December, 2018 2 0 1 8 2 0 1 7 12 MONTHS 18 MONTHS NOTES $ $ REVENUE Funds received for project activities 8 371,213 300,000 371,213 300,000 EXPENSES Meetings 125,455 105,299 Hotel and accommodation 90,911 29,250 Tour & travelling 52,259 16,400 Furniture, IT and Office equipment 41,289 - Audit fees 6,840 6,840 Stationery 3,383 3,000 Consultancy fees 96,000 - Bank charges 731 80 416,867 160,869 (Deficit)/surplus for the period (45,656) 139,131 Note: The explanatory notes on pages 9 to 12 form an integral part of these financial statements. 5 ECOWAS COMMISSION (GRANT NO: TF0A2770) STRENGTHENING DISASTER RISK REDUCTION COORDINATION, PLANNING AND POLICY ADVISORY CAPACITY OF ECOWAS PROJECT Statement of Financial Position As at 31 December, 2018 20 1 8 20 17 NOTES $ ASSETS Current Assets Cash & Cash Equivalents 9 116,828 145,971 S116,826 145,971 LABILITIES Current liabilities Payables 0 23,31 6,840 Total current liabilities 23,351 6,840 Net assets 93,475 139,131 NET ASSETS Accviiu,atu sur3.us 1t 139,13 Note: The exclanafory notes on ages 9 to 12 fkri an integra; part of these f;nancial statements. To financial statemets were aaproved on 27 June, 2019 and signed on its behaf by: Mr. BabacaTNdfaye--- Chukwuka Nwacheli Director of Finance (Financial Reporting & Grants) Head of Divislon, Grants ECOWAS COMMISSION (GRANT NO: TF0A2770) STRENGTHENING DISASTER RISK REDUCTION COORDINATION, PLANNING AND POLICY ADVISORY CAPACITY OF ECOWAS PROJECT Statement of Changes in Net Assets For the year ended 31 December, 2018 Accumulated Surpluses Total 2018 $ $ Balance as at the beginning 139,131 139,131 (Deficit)/surplus for the period (45,656) (45,656) Balance as at 31 December, 2018 93,476 93,476 2 0 17 Balance as at the beginning - . Surplus for the period 139,131 139,131 Balance as at 31 December, 2017 139,131 139,131 Note: The explanatory notes on pages 9 to 12 form an integral part of these financial statements. 7 ECOWAS COMMISSION (GRANT NO: TF0A2770) STRENGTHENING DISASTER RISK REDUCTION COORDINATION, PLANNING AND POLICY ADVISORY CAPACITY OF ECOWAS PROJECT Statement of Cash Flows For the year ended 31 December, 2018 2 0 1 8 2 0 1 7 Notes $ $ Cash flows from operating activities (Deficit)/surplus for the period (45,656) 139,131 Changes in working capital: Increase in payables 16,511 6,840 Cash (out)/in flow from operating activities (29,145) 145,971 Cash (out)/in flow for the year (29,145) 145,971 Cash and cash equivalents at the beginning 145,971 - Cash and cash equivalents at 31 December, 2018 116,826 145,971 Represented by: Cash and Cash equivalents 116,826 145,971 Note: The explanatory notes on pages 9 to 12 form an integral part of these financial statements. 8 ECOWAS COMMISSION (GRANT NO: TF0A2770) STRENGTHENING DISASTER RISK REDUCTION COORDINATION, PLANNING AND POLICY ADVISORY CAPACITY OF ECOWAS PROJECT Notes to The Financial Statements For the year ended 31 December, 2018 Brief About the Project The project is part of a larger programme to improve the ECOWAS Commission overall technical and coordination capacity to lead West Africa's disaster risk reduction (DRR) and climate change adaptation (CCA) agenda. The programme is supported by the Africa, Caribbean and Pacific (ACP) group of States- European Union (EU) cooperation program Building Disaster Resilience to natural Hazards in Sub- Saharan African Regions, Countries and Communities. Result area 2 of this program supports "African Regional Economic Communities (REC) have DRR Coordination, planning and policy advisory capacities operational to support their respective member states and sub-regional programs" providing USD 5 million to ECOWAS to strengthen coordination, planning and policy for DRM and CCA, while fostering a strong collaboration and knowledge exchange. The ACP-EU supported "Building Disaster Resilience to natural Hazards in Sub-Saharan African Regions, Countries and Communities" Programme will be implemented in three phases, over a period of 4years starting in January 1, 2015 to June 30 2019. Phase 1 will have 30months duration, where predominantly Bank Executed activities will be implemented with an approximate budget of USD 2.3 million. Phase 2 will cover 18 months and phase 3 will cover 6 months. The funding source for this project is the World Bank GFDRR-administered ACP-EU Natural Disaster Risk Reduction (ACP-EU NDRR) Trust Fund (TF). This project's financing instrument will be a Recipient Executed Trust fund (RETF) Grant in the amount of US$1.285 million to ECOWAS. The project implementation will start upon the declaration of effectiveness of the Grant Agreement. The project's primary beneficiary is the ECOWAS Commission, which is expected to strengthen its technical and coordination capacities for DRR and CCA in order to be able to better support member states, and through them, the communities and populations. As such, primary beneficiaries include (1) ECOWAS, and (ii) the national agencies responsible for DRM in each Member States. Secondary beneficiaries include: relevant line ministries, national and subnational government agencies in the Member States; NGOs and CSOs involved in addressing DRR and CCA at the regional, national and subnational levels in the ECOWAS Region and/or Member States. Furthermore, it is expected that vulnerable populations living at-risk across the ECOWAS region would benefit from improved governance, planning and implementation capacity of the institutions responsible for implementing DRR and CCA interventions in the respective communities and for target populations 9 ECOWAS COMMISSION (GRANT NO: TF0A2770) STRENGTHENING DISASTER RISK REDUCTION COORDINATION, PLANNING AND POLICY ADVISORY CAPACITY OF ECOWAS PROJECT Notes to The Financial Statements For the year ended 31 December, 2018 2. Basis of presentation and compliance with IPSAS The Project's financial statements for the period ended 31 December, 2018 are prepared and presented in accordance with, and comply with International Public Sector Accounting (IPSAS) issued and effective for the period presented. These financial statements comprise statement of financial performace, statement of financial position, Statement of Net Assets, the statement of cash flows, receipt and payments, accounting policies and the explanatory notes. 3. Basis of measurement These financial statements have been prepared on historical cost basis. 4. Going concern status The financial statements have been prepared in accordance with the going concern principle. In assesing whether the going concern is appropriate, management takes into account all available information for the forseable future, in particular for the twelve months from the date of approval of the financial statements. 5. Functional and presentation currency The financial statements are presented in US Dollars, which is the Project's functional currency. 6. Use of estimates and judgements In the application of the Project's accounting policies, the Officials are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. 10 ECOWAS COMMISSION (GRANT NO: TF0A2770) STRENGTHENING DISASTER RISK REDUCTION COORDINATION, PLANNING AND POLICY ADVISORY CAPACITY OF ECOWAS PROJECT Notes to The Financial Statements For the year ended 31 December, 2018 7. Statement of Accounting Policies The significant accounting policies applied in the preparation of these financial statements as set below have been consistently applied. .1 Basis of accounting The financial statements are prepared under the historical cost convention. .2 Disbursements All disbursements are classified as development expenditure within the ECOWAS Region. .3 Revenue Revenue represents inflows for the Project Activities from the World Bank. Receipts are recognised on cash basis. .4 Accural This is a basis of accounting under which transactions and when events are recognise when they occur, and not only when cash or its equivalent is received or paid. Commitments at year end are accrued for. .5 Property, plant and equipment These are mainly Furniture, IT and Office Equipments for the project office and the items are expensed. 20 18 20 17 $ $ 8. FUNDS RECEIVED FOR PROJECT ACTIVITIES Grants received 371,213 300,000 371,213 300,000 These are grant received by the Commission for project implemenattion. 11 ECOWAS COMMISSION (GRANT NO: TF0A2770) STRENGTHENING DISASTER RISK REDUCTION COORDINATION, PLANNING AND POLICY ADVISORY CAPACITY OF ECOWAS PROJECT Notes to The Financial Statements For the year ended 31 December, 2018 2018 2017 $ $ 9. CASH AND CASH EQUIVALENTS Zenith Bank Plc 116,826 145,971 116,826 145,971 10. PAYABLES Due to ECOWAS Commission (Note 10.1) 9,672 - Acrued audit fee 13,679 6,840 23,351 6,840 .1 Amount due to ECOWAS represents payments made by the Commission for the purchase of Project's Office Equipment ($8,088) and Stationery ($1,584). 11. ACCUMULATED SURPLUS Balance at Beginning 139,131 - Surplus for the period (45,656) 139,131 Balance at 31 December, 2018 93,476 139,131 12 ECOWAS COMMISSION (GRANT NO: TF0A2770) STRENGTHENING DISASTER RISK REDUCTION COORDINATION, PLANNING AND POLICY ADVISORY CAPACITY OF ECOWAS PROJECT Schedules to the financial statements For the year ended 31 December, 2018 LIST OF PROJECTS PROPERTY, PLANT & EQUIPMENT S/N DESCRIPTION QTY AMOUNT 1 IT/OFFICE EQUIPMENTS $ Professional Notebook System 5 Professional Desktop System 5 Anti-Virus 10 HP DesignJet T1300 PostScript ePrinter 1 Desktop Printer 3 All in One Scanner- Printer - Copy... 2 Portable Multimedia Projector 2 Photocopy Machine 1 Binding Machine 1 Paper shredders 1 APC extension cord 8 UPS photocopy machine and printer 3 23,107 Multi-Media Power Point Projector 1 Water Dispenser 4 Standing Fan 5 Paper Shredder 2 Extention Electric Cord 10 1.5KVA UPS 5 3 KVA UPS 3 8,088 2. OFFICE PARTITIONING Office Partitioning and Renovation Works 3,457 3. OFFICE FURNITURE Conference Table 1 Conference Chair 8 Visitor Chairs 6 File Cabinet - Half Height 4 File Rack 4 6,637 GRAND TOTAL 41,289 13