GHANA CLIMA TE INNOVA TION CENTRE (GCIC) FINANCIAL STA TEMENTS 30 SEPTEMBER 2020 GHANA CLIMATE INNOVATION CENTRE (GCIC) REPORT AND FINANCIAL STATEMENTS INDEX Page Project Information 2 Report of the Ashesi Board 3-5 Independent Auditor's Report 6-8 Statement of Income and Expenditure 9 Statement of Changes in Net Assets 9 Statement of Financial Position 10 Notes forming part of the Financial Statements I 1-18 GHANA CLIMATE INNOVATION CENTRE (GCIC) PROJECT INFORMATION BOARD OF ASHESI UNIVERSITY Pearl Esua-Mensah- Chairperson Patrick Awuah- President Sangu Delle- Member Patrick Nutor- Member Mona Boyd- Member Charles Cofie- Member Tamar Di Franco- Member Yawa Hansen-Quao- Member Harriette Amissah-Arthur- Member ADVISORY BOARD Hon. Ms. Patricia Appiagyei, MP Lucy Quist Ebenezer Arthur Rep. of the Danish Embassy Rep. of the Royal Netherlands Embassy CONSORTIUM MEMBERS Ashesi University College Ernst & Young (EY Ghana) SNV United Nations University Institute for Natural Resources in Africa SOLICITOR Anna Bannerman-Ritcher AB Executive & Law Offices D583/4 So. Liberia Road, Tudu PO Box MB219 Accra REGISTERED OFFICE 198 Osu Badu Crescent West Airport, Accra AUDITOR KPMG 13 Yiyiwa Drive, Abelenkpe PO Box GP 242 Accra BANKER Ecobank Ghana Limited L. n 3 GHANA CLIMATE INNOVATION CENTRE (GCIC) REPORT OF THE ASHESI BOARD The Ashesi Board presents their report and the financial statements for the nine-month period ended 30 September 2020. ASHESI BOARD' RESPONSIBILITY STATEMENT The Ashesi Board is responsible for the preparation of financial statements of the Ghana Climate Innovation Centre (GCIC) ("the Centre"), comprising the statement of financial position as at 30 September 2020, and the r2 statements of income and expenditure and net assets for the period then ended, and the notes to the financial statements which include a summary of significant accounting policies and other explanatory notes, in accordance with the policies discussed in the note 2 to these financial statements. In addition, the Ashesi Board is also - responsible for the preparation of the Report of the Ashesi Board The Ashesi Board is also responsible for such internal control as the Ashesi Board determine is necessary to enable * the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and for maintaining adequate accounting records and an effective system of risk management. GOING CONCERN CONSIDERATION AND SUBSEQUENT EVENTS The Ghana Climate Innovation Centre project's funding from the Dutch and Danish Government through the World Bank ended on 30 September 2020. The Centre is currently seeking for funding to continue with the project. During the period, the Centre submitted a proposal to a potential donor to secure funding for a grant of CAD 10 million for a 5 year period to enable it continue with the Centre's principal objectives. Subsequent to the period end, the Centre has undertaken the following measures. The Centre: * Has had discussions with the potential donor and negotiations on funding arrangements and grant agreement are yet to be finalized; and * Is in the process of signing a contract to provide third party business incubation management services with a leading International Bank in Ghana to run and manage a business incubator for a period of about twelve months. The Centre received a bridge funding of USD 54,520 from Ashesi University in October 2020 to cover payroll and operational cost from 01 November 2020 to 31 December 2020. Ashesi's Board acknowledge that the Centre's ability to continue to operate as a going concern is dependent on the Centre securing adequate funding to enable it successfully carry out its principal activities. These conditions give rise to a material uncertainty which may cast significant doubt about the Centre's ability to continue as a going concern and, therefore that it may be unable to realise its assets and discharge its liabilities in the normal course of business. The financial statements have been prepared on the basis of accounting policies applicable to a going concern. This basis presumes that funds will be available to finance future operations and that realisation of assets and settlement of liabilities will occur in the ordinary course of business, FINANCIAL STATEMENTS/BUSINESS REVIEW The financial results of the Centre for the period ended 30 September 2020 is reflected in the Centre's financial statements. The Ashesi Board considers the state of the Centre to be satisfactory. r s 4 GHANA CLIMATE INNOVATION CENTRE (GCIC) rl REPORT OF THE ASHESI BOARD (CONT'D) NATURE OF BUSINESS/PRINCIPAL ACTIVITIES Ghana Climate Innovation Centre (GCIC) is a project funded by the Dutch and Danish Governments through the World Bank to establish local institutional capacity to support Ghanaian entrepreneurs and new ventures involved in developing profitable and locally appropriate solutions to climate change mitigation and adaptation. Through its programs, activities and financing, the GCIC and its network of Partners and stakeholders will provide a country-driven approach to solving climate, energy and resource challenges and support economic development r through job creation. The USD 8.5 M program provides targeted support, mentoring, training and funding facilitation for up to 85 companies in Ghana over a 5 years period. The Centre's business model and associated services are dependent on, and tailored to, the local market. To identify market needs, opportunities and challenges from a local perspective, infoDev developed the GCIC business plan through a detailed analysis and an extensive in-country, multi-stakeholder engagement process. Over 250 stakeholders from the region were convened for a series of workshops, focus groups, surveys and interviews to explore the key barriers to climate technology innovation and entrepreneurship in Ghana and the design of appropriate solutions to these barriers in the form of the GCIC's programs, services and support. Based on the design process of the GCIC model, the GCIC offers the following Service Lines: Entrepreneurship and Venture Acceleration * Business advisory, mentoring, access to professional services * Technical training and skills development * Seminars, events and networking opportunities * Provision of office space and services for entrepreneurs and start-ups * A women's entrepreneurship and transformation program Access to Finance * Awarding Sub-grants to support SMEs to test the market potential of a promising technology, product or process. * Facilitation of commercial investment through investor introductions, matchmaking, and investment advisory services. Market Growth and Access * Research and analytics on markets, competitors and sector trends * Carrying out of export promotion program * Preparation and installation of technology performance information database * Carrying out country-wide networking events for climate technology SMEs and entrepreneurs Technology and Product Development * Provision of access to technical facilities and services to design, prototype, and test and demonstrate products * Linking of SMEs with technology suppliers * Commercialization program for universities and research institutes involved in climate technology research and development Policy and Regulatory Support * Advocacy on climate technology policy issues * Research on sector policy trends, policy implementation and effectiveness, and best international practices * Policy dialogues, roundtables and events to engage policy maker n 5 GHANA CLIMATE INNOVATION CENTRE (GCIC) REPORT OF THE ASHESI BOARD (CONT'D) NATURE OF BUSINESS/ PRINCIPAL ACTIVITIES (CONT'D) Areas of focus: * Energy Efficiency (Industrial and Household) * Domestic Waste Management * Solar Energy * Water Supply Management and Purification * Climate Smart Agriculture SOURCE OF FUNDING The project is financed by the Dutch and Danish Governments grants through World Bank to the tune of USD 8,500,000. APPROVAL OF FINANCIAL STATEMENTS The financial statements were approved by the Ashesi Board on . ..4.rt2020 and were signed on their behalf by: Name irec Name of Director Signature Signature 6 INDEPENDENT AUDITOR'S REPORT IL V TO THE ASHESI BOARD Opinion We have audited the financial statements of Ghana Climate Innovation Centre (GCIC) ("the Centre"), which comprise the statement of financial position as at 30 September 2020, and the statements of income and expenditure and changes in net assets for the nine months period then ended, and the notes to the financial statements which include a summary of significant accounting policies and other explanatory notes, as set out on pages 9 to 18. In our opinion, the accompanying financial statements of the Centre for the period ended 30 September 2020 are prepared, in all material respects, in accordance with the basis of accounting described in Note 2 to the financial statements. Basis for Opinion 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 Centre in accordance with the International Ethics Standards Board for Accountants' International Code of Ethics for Professional Accountants (including International Independence Standards) (IESBA Code), together with the ethical requirements that are relevant to our audit of the financial statement in Ghana and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. * i Material Uncertainty Related to Going Concern We draw attention to Note 17 of the financial statements, which indicates that the Project funding agreement with . the Dutch and Danish Governments through the World Bank came to an end on 30 September 2020 and, the Centre is in discussions with a potential Donor to secure funding to continue the Centre's principal activities. As stated in Note 17, this event or condition along with other matters as set forth in Note 17, indicate that a material uncertainty exist that may cast significant doubt on the Centre's ability to continue as a going concern. Our opinion is not modified in respect of this matter Emphasis ofMatter - Basis ofAccounting and Restriction on Use and Distribution We draw attention to Note 2 to the financial statements which describes the basis of accounting. The financial statements have been prepared to provide financial information to the Donors of the Centre. As a result, the financial statements may not be suitable for another purpose. Our report is intended solely for the Donors and Ghana Climate Innovation Centre and should not be used by or distributed to parties other than the Donors of the project and Ghana Climate Innovation Centre. Our opinion is not modified in respect to this matter. Other Information The Ashesi Board is responsible for the other information. The other information comprises the Project Information and the Report of the Ashesi Board but 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, 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. AK Sarpong E 0. Asiedu ND. Hadley KPMG. a partnership established under Ghanaian law, is a member of the 0 5 Adoleye A0. Akoto NA. Ayrvor KPMG netwook of independent member firms afl aed with KPMG K Frempong-Kore F. Dennis J Coleman termtional Coorporative ( KPMG International') a Swiss entity E Addico L. Amidu K S Bernieh 7 INDEPENDENT AUDITOR'S REPORT SWEit 6TO THE ASHESI BOARD (CONT'D) Responsibilities ofthe Ashesi Board for the Financial Statements The Ashesi Board is responsible for the preparation of financial statements in accordance with the basis of accounting described in the Note 2 to the financial statements, for determining that the basis of accounting is acceptable in the circumstances, and for such internal control as the Ashesi Board determines 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 Ashesi Board is responsible for assessing the Centre'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 Ashesi Board either intends to liquidate the Centre or to cease operations, or have no realistic alternative but to do so. The Ashesi Board is responsible for overseeing the Centre's financial reporting process. 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 Centre's internal control. * Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Ashesi Board. * Conclude on the appropriateness of the Ashesi Board's 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 Centre'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 Centre to cease to continue as a going concern. We communicate with the Ashesi Board regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. A.K Sarpong EO0 Asiedu N D. Hadley KPMG. a partnership established under Ghanaian law, s a member of the D.S Adateve A.O. Ako N A. Ayvor KPMG network of independent member firms aff ated wmth KPMG K FrempwngKore F Dennis J Coleman Intemationa Coorporative I KPMG nternationat ) a Swiss entity. E Addico L. Amidu K. S. Bamish INDEPENDENT AUDITOR'S REPORT TO THE ASHESI BOARD (CONT'D) The engagement partner on the audit resulting in this independent auditor's report is Nathaniel D. Harley (ICAG/P/IO56). For and on behalf of: KPMG: (ICAG/F/2020/038) CHARTERED ACCOUNTANTS 13 YIYIWA DRIVE, ABELENKPE P0 BOX GP 242 ACCRA . .2020 L. J A K. Sapog E.O Asiedu N D, Harley KPMG, a partnership established under Ghanaian law, se member of the D.S Adatee A.0 Akoto N.A. Avrvor KPMG network of independent member firms affiliated with KPMG K Frempong-Kore F Dennis J Coleman ntemational Coorperetve 1KPMG ntamational"), a Swiss entity E Addico L Amidu K. S. Barniah 9 GHANA CLIMATE INNOVATION CENTRE (GCIC) .m STATEMENT OF INCOME AND EXPENDITURE FOR THE NINE MONTH PERIOD ENDED 30 SEPTEMBER 2020 9 months 12 months 56 months 2020 2019 Cumulative Note USS USS US$ INCOME Funds received (Grants Received) 3 1,356,597 2,704,567 8,437,148 1,356,597 2,704,567 8,437,148 EXPENDITURE Salaries and Benefits 4 302,912 397,815 1,365,048 Access to Finance 5 466,247 591,239 1,741,034 Other Operational Cost 6 227,254 462,133 1,576,740 Marketing and Promotion 7 76,666 228,287 691,552 Entrepreneurship and Venture Acceleration 8 77,649 487,906 1,146,256 Monitoring and Evaluation 9 126,157 96,932 406,910 Market Growth and Access 10 47,894 100,311 307,116 Technology and Product Development 11 73,621 279,643 523,357 Purchase of Fixed Asset 12 6,252 500 300,137 Policy and Regulatory Support 13 55,018 93,654 316,831 1,459,670 2,738,420 8,374,981 (DEFICIT)/SURPLUS OF EXPENDITURE --.-....... -------... -------- OVER INCOME (103,073) (33,853) 62,167 STATEMENT OF CHANGES IN NET ASSETS FOR THE NINE MONTH PERIOD ENDED 30 SEPTEMBER 2020 2020 2019 USS USS Balance as of I January 165,240 199,093 (Deficit) of Expenditure over Income (103,073) (33,853) Balance as of 30 September 62,167 165,240 The notes on pages 11 to 18 are an integral part of these financial statements. 10 GHANA CLIMATE INNOVATION CENTRE (GCIC) STATEMENT OF FINANCIAL POSITION AS AT 30 SEPTEMBER 2020 2020 2019 ASSETS Note USS USS Cash and Bank balances 14 62,167 165,240 TOTAL ASSETS 62,167 165,240 REPRESENTED BY: NET ASSETS 62,167 165,240 Name of Director Name of Director Signature Signature The financial statements were approved by the Ashesi Board on . Q... . .4., 2020 The notes on pages 11 to 18 are an integral part of these financial statements. Li Lj GHANA CLIMATE INNOVATION CENTRE (GCIC) NOTES FORMING PART OF THE FINANCIAL STATEMENTS 1. REPORTING ENTITY Ghana Climate Innovation Centre (GCIC) is a project funded by a Dutch and Danish Government through the World Bank to establish local institutional capacity to support Ghanaian entrepreneurs and new ventures involved in developing profitable and locally appropriate solutions to climate change mitigation and adaptation. 2. SIGNIFICANT ACCOUNTING POLICIES The principal accounting policies adopted by the programme's management in the preparation of the financial statements are set out below: a. Basis of preparation and purpose of financial statements The financial statements have been prepared in accordance with the grant agreement between Ashesi University and the World Bank and the standard conditions for grants made by the World Bank. The financial statements have been prepared to provide financial information to the donors of the project. b. Income recognition Income is recognized when funds are disbursed to the centre. Income comprises mainly funds received from the International Bank for Reconstruction and Development and International Development Association (World Bank). c. Expenditure recognition Expenditure are recognized when expenses are incurred in the process of carrying out the centre's activities and payments are made. d. Reporting currency The financial statements are presented in United States Dollars. e. Foreign exchange Transactions denominated in other currencies are translated into United States Dollars (US$) and recorded at the rate of exchange ruling at the date of the transactions. Balances denominated in other currencies are translated into US$ at the rate of exchange ruling at the reporting date. Resulting gains or losses arising from such transactions are taken into consideration in arriving at the surplus or deficit for the period. C. Capital expenditure/ Fixed assets Capital items are expensed on acquisition. 12 GHANA CLIMATE INNOVATION CENTRE (GCIC) NOTES FORMING PART OF THE FINANCIAL STATEMENTS (CONT'D) 3. GRANTS RECEIVED 9 months 12 months 2020 2019 USS USS Funds received from World Bank 1,325,001 2,704,567 Refunds** 31,596 - 1,356,597 2,704,567 ** This relates to relates to refund from a consortium member (SNV) for funds misappropriated on the part of a staff (GHS 28,418), recoverable grant (GHS 1,982) and refund by the security company after an incident of a stolen desktop computer on the office premises (GHS 1,196). 4. SALARIES AND BENEFITS 9 months 12 months 2020 2019 USS USS Salaries and Wages 178,037 218,199 Employer SSF (13%) Contribution 26,603 31,421 Consultants' Fees 81,955 122,923 Other Staff Costs 16,317 25,272 302,912 397,815 Included in the above is the Chief Executive Officer's Remuneration of USS 92,515 (2019: USS 113,795) 5. ACCESS TO FINANCE This relates to providing support of early stage financing to GCIC entrepreneurs led by EY. SNV Netherland Development Organisation also provides a supporting role. The activities include awarding sub-grants to support SMEs to test the market potential of promising technology, product or process, and facilitation of commercial investment through investor introductions, matchmaking, and investment advisory services. 9 months 12 months 2020 2019 USS USS External Support 1,536 55,021 Awareness creation & Capacity building 3,757 5,719 Proof of Concept (POC) Grant 392,276 375,257 POC Grant verification checks 4,147 7,380 Technical Assistance EY and SNV 64,531 147,862 466,247 591,239 n 13 GHANA CLIMATE INNOVATION CENTRE (GCIC) NOTES FORMING PART OF THE FINANCIAL STATEMENTS (CONT'D) 6. OTHER OPERATIONAL COSTS This expense line relates to all the Operational Costs of GCIC such as rent, utilities, security and office consumable costs, Corporate Governance costs which relate to audit and consultancy fees, training and travel expenses incurred for the consortium group, Office establishment and Operation expenses which relate to the overheads of GCIC and any exchange difference arising from the effect of changes in foreign exchange rates. 9 months 12 months 2020 2019 UsS Us$ Other Operational Cost 145,165 178,530 Corporate Governance 12,917 23,559 Office Establishment and Operations 78,340 230,565 Exchange Difference (9,168) 29,479 227,254 462,133 7. MARKETING AND PROMOTION These are costs associated with activities set out to market the project, below the line and above the line costs. These costs include advertising costs to market the project, entrepreneurs/businesses, advertising costs for bids to be made, web designing costs as well as all costs relating to social media marketing. 9 months 12 months 2020 2019 USS US$ Creative Designs and Art Works 22,972 39,383 Advertising and PR - 137 Social Media Marketing 547 669 Brand Collateral 1,229 477 Below the line - Road Show 2,924 - Awareness 14,803 98,183 Positioning 32,526 38,775 Application Pipeline Fulfilment 1,665 37,569 Adoption - 13,094 76,666 228,287 14 GHANA CLIMATE INNOVATION CENTRE (GCIC) , riNOTES FORMING PART OF THE FINANCIAL STATEMENTS (CONT'D) 8. ENTREPRENEURSHIP AND VENTURE ACCELERATION This expense line is part of the five major work streams of GCIC. It embeds fee charges for professional services, r portfolio management services, provision of one on one mentoring services for entrepreneurs, coaching, workshops, and networking events for entrepreneurs led by GCIC staff based at Ashesi. r 9 months 12 months 2020 2019 US$ US$ Portfolio Managers 6,922 145,287 Mentoring and Workshop - 254 Technical Training 3,242 46,285 Executive Coaching - 180 Alumni Services - 5,539 GCIC Thought leadership series 44,612 36,054 Services for Entrepreneurs - 43,310 Women Entrepreneurship Transformation Program. - 13,119 Peer to Peer Exchange for Entre 18,983 43,072 Executive Education for GCIC staff 346 21,528 Wellbeing - 20,367 Student Entrepreneurship Program. 3,060 5,071 GCIC Outreach - 15,430 SNV Technical Assistance - 38,316 Seminars, events and networking 484 5,474 Carbon savings workshop - 6,313 Cohort search and selection - 3,650 Recoverable Grant - 30,000 Ent & VA Due Diligence - 8,657 77,649 487,906 9. MONITORING AND EVALUATION Monitoring and Evaluation (M&E) is a OCIC service line that is aimed at monitoring and evaluating both direct and indirect effects that the Centre's programs and services has on beneficiaries and surrounding communities. M&E will be achieved through the use of an internal database and data collection, GCIC annual reports, focus . groups and stakeholder follow-ups, survey and other quantitative measures where possible, and infoDev project supervision and assessments. 9 months 12 months 2020 2019 USS US$ Data Collection Quality Control 6,665 9,594 EY Technical Assistance Fees 119,492 87,338 126,157 96,932 L-f_ __ _ _ _ _ r-. 15 GHANA CLIMATE INNOVATION CENTRE (GCIC) NOTES FORMING PART OF THE FINANCIAL STATEMENTS (CONT'D) 10. MARKET GROWTH AND ACCESS This expense relates to all costs incurred in equipping the Entrepreneurs in research, marketing, branding and packaging of their products and services to enhance their ability to penetrate the market and carve out a niche for their businesses. This work stream is led by SNV Netherlands development Organisation. 9 months 12 months 2020 2019 USS USS Market Access Manager 12,000 43,339 Market growth Access and export - 7,080 Research & Analytics on Markets 18,755 37,511 SNV Technical Assistance 17,139 12,381 47,894 100,311 11. TECHNOLOGY AND PRODUCT DEVELOPMENT This relates to all expenses incurred in advancing funds to entrepreneurs for the acquisition of equipment for their businesses. This work stream is led by SNV Netherlands development organisation, thus consultancy fees paid to . SNV for services rendered in relation to this line is charged to this expense line. 9 months 12 months 2020 2019 USS USS Technology and Product Development Manager 17,983 50,805 Technology and Product Development Grant - 150,877 Community Program for Universities & Research 10,007 40,429 Technical Fees 19,352 21,895 Technical Development and Due Diligence 24,283 15,637 Trainings and studies on IP 1,996 - 73,621 279,643 12. PURCHASE OF FIXED ASSETS This expense relates to the purchase and installation of fixed assets for GCIC's operations. 9 months 12 months 2020 2019 USS Us$ Office Furniture & Fittings 6,252 500 LJ 6,252 500 F- 16 GHANA CLIMATE INNOVATION CENTRE (GCIC) NOTES FORMING PART OF THE FINANCIAL STATEMENTS (CONT'D) 13. POLICY AND REGULATORY SUPPORT This work stream is part of the 5 major work streams and is led by United Nations University- Institute for Natural Resources in Africa. This expense is related to advocacy with government and other stakeholders on climate and clean technology issues, which is geared towards engaging the government to dialogue on climate issues. 9 months 12 months 2020 2019 USS USS Policy Fellow- GCIC 30,000 40,000 Advocacy on Tech Climate Policy 10,018 13,491 Sector Policy Trends and Best Practices - 18,646 Policy Dialogues and Roundtable - 6,517 United Nations University Technical Assistance 15,000 15,000 55,018 93,654 14. CASH AND CASH EQUIVALENTS 9 months 12 months 2020 2019 USS USS Ecobank Offshore Dollar Account 59,583 134,667 Ecobank GHS Current Account 2,584 30,573 62,167 165,240 P 17 GHANA CLIMATE INNOVATION CENTRE (GCIC) ri NOTES FORMING PART OF THE FINANCIAL STATEMENTS (CONT'D) 15. COMPREHENSIVE LIST OF UNPAID LIABILITIES AS AT 30 SEPTEMBER 2020 There were no unpaid liabilities as at the period end 30 September 2020. 16. ACTUAL-BUDGET ANALYSIS Budget Lines Actual Budgeted Amount Amount Variance Utilisation (USS) (USS) (USS) Grant Income 1,325,001 1,325,001 - 100% Expenditure: Personnel Expenses 302,912 306,292 3,380 99% Other Operating Costs 227,254 341,608 114,355 67% Marketing and Promotions 76,666 147,875 71,209 52% Entrepreneurship & 75,667 126,179 50,512 60% Venture Acceleration Access to Finance 466,247 384,597 (81,650) 121% Market Growth and Access 47,894 25,370 (22,524) 189% Technology and Product 45,203 87,959 42,756 51% Development Monitoring and Evaluation 126,157 93,034 (33,123) 136% Policy and Regulatory Sup. 55,018 80,000 24,982 69% Capital Expenses 5,056 - (5,056) 100% Total 1.428,073 1,592,913 60,840 L! 18 GHANA CLIMATE INNOVATION CENTRE (GCIC) NOTES FORMING PART OF THE FINANCIAL STATEMENTS (CONT'D) 17. GOING CONERN CONSIDERATION AND SUBSEQUENT EVENTS The Ghana Climate Innovation Centre project's funding from the Dutch and Danish Government through the r - World Bank ended on 30 September 2020. The Centre is currently seeking for funding to continue with the project. r During the period, the Centre submitted a proposal to a potential donor to secure funding for a grant of CAD 10 million for a 5 year period to enable it continue with the Centre's principal activities. Subsequent to the period end, the Centre has undertaken the following measures. The Centre: * Has had discussions with the potential donor and negotiations on funding arrangements and grant agreement are yet to be finalized; and * Is in the process of signing a contract to provide third party business incubation management services with a leading International Bank in Ghana to run and manage a business incubator for a period of about twelve months. The Centre received a bridge funding of USD 54,520 from Ashesi University in October 2020 to cover payroll and operational cost from 01 November 2020 to 31 December 2020. Ashesi's Board acknowledge that the Centre's ability to continue to operate as a going concern is dependent on the Centre securing adequate funding to enable it successfully carry out its principal activities. These conditions give rise to a material uncertainty which may cast significant doubt about the Centre's ability to continue as a going concern and, therefore that it may be unable to realise its assets and discharge its liabilities in the normal course of business. The financial statements have been prepared on the basis of accounting policies applicable to a going concern, This basis presumes that funds will be available to finance future operations and that realisation of assets and settlement of liabilities will occur in the ordinary course of business. L