REPUBLIC OF SOUTH SUDAN INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT PROCUREMENT CAPACITY DEVELOPMENT SUPPORT PROJECT TRUST FUND NUMBER TF014718 FOR YEAR TO 30 JUNE 2015 STRICTLY CONFIDENTIAL DECEMBER 2015 CONTENTS PAGE INTRODUCTION ................................................................2 FINANCIAL STATEMENT PREPARATION RESPONSIBILITY...........4...... ..............4 STATEMENT OF CASH RECEIPTS AND PAYMENTS .....................................6 SIGNIFICANT ACCOUNTING POLICIES ...............................................7 NOTES TO THE FINANCIAL STATEMENTS .............................................9 1 INTRODUCTION SUMMARY OF PROJECT DETAILS Applicant Ministry Finance and Economic Planning - Republic of South Sudan - Juba Project To assist the Recipient in building capacity of public procurement Development institutions. objective Project * Strengthening of Regulatory Framework * Strengthening of Institutional Framework and Capacity Building components * Strengthening of Procurement Operations * Strengthen Integrity and Transparency of the Procurement System * Project Management Sectors Accountability Project activities South Sudan location Project September 10, 2013 to September 09, 2016. Implementation period 3 implementation years. period Project value The project cost is US$ 750,000 for the 3 years (2013-2016) Approved grant US$ 750,000 Financed by International Bank for Reconstruction and Development Association (IBRD) from the World Bank's Institutional Development Fund (IDF). Grant date September 05th, 2013 .t Ministry of Finance and Economic Planning (MoFEP) Implementing agencies 2 3. Scope of the Financial Audit and Review We have performed the procedures enumerated below with respect to the Procurement Capacity Development Support Project Statement of Cash Receipts and Payments for the year to 30 June 2015. * To examine whether the Beneficiary has complied with the rules for accounting and record keeping of the Grant Contract with a view to assess whether an efficient and effective expenditure verification of the Financial Report is feasible and to report important exceptions and weaknesses with regard to accounting, record keeping and documentation requirements so that the Beneficiary can undertake follow-up measures for correction and improvement for the remaining implementation period of the action. * Consideration of Value as the primary factor used by the Auditor to select expenditure items or classes of expenditure. Use of appropriate judgment in selection of specific expenditure items or classes of expenditure items so as to cover expenses/areas that are unusual or inherently risky or error prone. * Exercise professional judgment to obtain sufficient appropriate verification evidence as to whether the expenditure has occurred (reality and quality of the expenditure) and - where applicable - assets exist. The Auditor verifies the reality and quality of the expenditure for a transaction or action by examining proof of work done, goods received or services rendered on a timely basis, at an acceptable and agreed quality and at reasonable prices or costs. * Evaluation of the internal control environment in order to determine areas of weaknesses in the internal control system and to obtain assurance that the transactions for the action are properly checked, authorized and approved by the appropriate personnel. REPORT OF THE AUDITOR GENERAL OF SOUTH SUDAN To Minister of Finance & Economic Planning, Government of the Republic of South Sudan I have audited the accompanying financial statements for the Procurement Capacity Development Support Project for the year ended 30 June 2015 as set out on pages 6 to 11 which comprise the Statement of Cash Receipts and Payments, a summary of the significant accounting policies and other explanatory notes. Management's Responsibility The Project Management and the Ministry of Finance Public Financial Management Unit are responsible for the preparation of these financial statements in accordance with the International Public Sector Accounting Standards (IPSAS), Financial Reporting Under The Cash Basis of Accounting and for such internal control as management determines are necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor General's responsibility My responsibility is to express an independent opinion on these financial statements based on my audit. I conducted my audit in accordance with International Standards on Auditing. Those Standards require that I comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. 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 judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of 4 expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management as well as evaluating the presentation of the financial statements. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion. Opinion In my opinion, the financial statements give a true and fair view of the contributions received and expenses paid under this project during the year ended 30 June 2015 in accordance with the International Public Sector Accounting Standards on cash receipts and disbursements basis as described in note (i), significant accounting policies. Amb. Steven Wondu Auditor General South Sudan National Audit Chamber Juba. 2015 This report is solely intended for the information and use of the Government of the Republic of South Sudan, the World Bank and International donors participating in the Project. 5 THE REPUBLIC OF SOUTH SUDAN INTERNATIONAL DEVELOPMENT ASSOCIATION (IDA) PROCUREMENT CAPACITY DEVELOPMENT SUPPORT PROJECT GRANT NO. TF 014718 FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30TH JUNE 2015 2014/2015 2013/2014 Note USD USD RECEIPTS: Contribution 2 130,589.00 120,000.00 Other receipts Interest income 3 Sale of Bid documents 0.00 0.00 Total receipts 130,589.00 120,000.00 PAYMENTS: Payments as per Project Components 4 51,364.00 79,225.00 Bank charges 5 587.74 507.78 Total payments 51,951.74 79,732.78 Increase in cash during the period 78,637.26 40,267.22 Cash at beginning of the period 40,267.22 0.00 Increase in cash during the period 118,904.48 40,267.22 Cash at end of period 6 118,48 The financial statement on this page was approved for issue by the Pr ment on .1' .... 2015 and signed on its behalf by C4,*o~1~, ..... b.. ~DEC 2015 Project Coordinator/DG of Procurement-MoF Director General for * S Procurement e~ The accounting policies on pages 7 to 9 and the notes on pages 9 and 10 fo fthese financial statements. 6 THE REPUBLIC OF SOUTH SUDAN INTERNATIONAL DEVELOPMENT ASSOCIATION (IDA) PROCUREMENT CAPACITY DEVELOPMENT SUPPORT PROJECT GRANT NO. TF 014718 FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30TH JUNE 2015 1. SIGNIFICANT ACCOUNTING POLICIES i) Basis of preparation These financial statements are for the IDA Grant No. TF 014718: Procurement Capacity Development Support Project have been prepared in accordance with International Public Sector Accounting Standards (IPSAS) "Financial Reporting under the Cash Basis of Accounting" on a modified cash basis of accounting. The modified cash basis comprises of the cash basis of accounting supplemented with additional disclosure items. Under the cash basis of accounting, transactions and other events are recognized if and when cash is received or paid. ii) Reporting entity The financial statements are for the IDA Grant No. TF 014718: Procurement Capacity Development Support Project. iii) Reporting currency The Reporting currency is United States Dollars (USD). iv) Foreign currency transactions Transaction in foreign currencies during the reporting period are converted into US dollars at rates ruling on the transaction dates. v) Contribution Contributions comprise where applicable, cash donations made directly to the Project's pooled bank account by the World Bank as well as any payments made Directly to suppliers and contractors by the World Bank, on behalf of beneficiary under the categories defined in the financing agreement and as procured by the Project. Direct contributions to the Project's segregated bank account Contributions made directly to the Project's segregated bank account are recognized upon receipt. Other contributions 7 Any payment made directly to suppliers and contractors are recognized upon payment. vi) Payments Payments are made in line with the provisions of the financing agreement. Transactions are only recognized in the financial statements if and when payment is made. vii) Assets Cash and cash equivalents Cash and cash equivalents comprise cash at bank and cash on hand. Receivables Receivable arising from cash payment that are recoverable from implementing State level ministries and third parties, including loans advanced are disclosed in the notes to the financial statements. [At 30th June 2015 this policy had not been effected]. Fixed assets and inventory Fixed assets and inventory are written off upon purchase. Any amounts on hand at the reporting date are shown at cost in the notes to the financial statements. [At 30th June 2015 this policy had not been effected]. viii) Liabilities Payables Amounts payable are shown in the notes to the financial statements. [At 30th June 2015 this policy had not been effected]. Accruals Accruals representing goods and services that have been rendered to the project, but for which no invoices have been presented by the suppliers at the reporting date are disclosed in the notes to the financial statements. [As 30th June 2015 this policy had not been effected] Contingent liabilities Contingent liabilities are possible obligations that arise from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the ministries and Government agencies. Contingent liabilities may also comprise present obligation that arise from past events but are not recognized either because it is not probable that an outflow of resources embodying economic benefits or service potential will be required to settle the obligations or the amount of the obligations cannot be measured with sufficient reliability. [At 30f June 2015 this policy had been effected]. 8 Contingent liabilities are disclosed in the notes to the financial statements. [At 30th June 2015 this policy had not been effected]. Commitments Commitments represent goods and services that have been approved and /or contracted, but where no delivery has taken place at the reporting date. Commitments are not recognized in the Statement of Cash Receipts and Payments as liabilities or as expenditure, but rather are disclosed in the notes to the financial statements. [At 30th June 2015 this policy had not been effected]. 2. CONTRIBUTIONS: 2014/2015 2013/2014 USD USD Designated accounts: Withdrawal application no. 02 79,225.00 Withdrawal application no. 03 50,364.00 Withdrawal application no. 04 1,000.00 130,589.00 120,000.00 Direct Payments 0.00 0.00 3. INTEREST INCOME: 2014/2015 2013/2014 USD USD Stanbic Bank Luba USD Designated Accounts _ ,00 QQ 4. PAYMENTS AS PER PROJECT ACTIVITIES: 2014/2015 2013/2014 USD USD Strengthening of Regulatory Framework............... 0.00 0.00 Strengthening of Institutional Framework and Capacity Building Efforts.................... 50,258.00 79,225.00 Strengthening of Procurement Operations.............. 0.00 0.00 Strengthening Integrity and Transparency of the Procurement System............................ 0.00 0.00 Project Management...................................... 1,106.00 0.00 Total 9 5. OTHER PAYMENTS 2014/2015 2013/2014 Bank charges USD USD CFC Stanbic Bank Juba USD Designated Accounts 587.74 -507,78 6 CASH BALANCES 30/06/2015 30/06/2014 USD USD Stanbic Bank Juba USD Designated Accounts 118,748.48 33,592.22 Advances for missions and petty cash 156.00 6,675.00 Total 118,904.48 40,67 10 AUDIT FINDINGS There were no material audit findings.