I I SEND-GHANA I MAKING THE BUDGET WORK FOR GHANA PROJECT GPSA GRANT#: TF018055 I I I I I I FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2017 I I I I I I I EGALA & ASSOCIATES I CHARTERED ACCOUNTANTS 14 ABEKA ROAD, TESANO I PO BOX AN 16626 ACCRA NORTH TEL: 0302 - 222199 I EMAIL: enquiry@eaaghana. Com I I I SEND-GHANA MAKING THE BUDGET WORK FOR GHANA PROJECT GPSA GRANT #: TF018055 I I I FINANCIAL STATEMENTS DECEMBER 31, 2017 I I Contents Page I Corporate information I Independent auditors' report 2-3 I Statement of sources and uses of funds 4 I Project cost summary 5 I Statement of financial position 6 I Notes to the financial statements 7-9 I Independent auditors' report on designated account statement 10 - 11 I 12 I Designated account statement I I I I I '' I I SEND-GHANA MAKING THE BUDGET WORK FOR GHANA PROJECT I GPSA GRANT #: TF018055 II • FINANCIAL STATEMENTS December 31, 2017 I CORPORATE INFORMATION • . I ' Board of directors : Siapha Kamara Chief Executive Officer Alhassan Y Seini Member I Janet Mohammed Board Chair I Justina Anglaaere Member Emmanuel Darke Member I I Registered Office : SEND-GHANA A 28 Regimanuel Estates Nungua Barrier, Sakumono I Accra I External Auditors : Egala & Associates Chartered Accountants 14 Abeka Road, Tesano " • PO Box AN 16626 Accra North I Bankers : Standard Chartered Bank I I - • I 111:~~1 EGALAAND ASSOCIATES (CHARTERED ACCOUNTANTS & BUSINESS ADVISORS) I BRANCH OFFICE P. 0. Box441 . 14, Abeka Road Tesano-Accra Tamale P. 0. Box AN 16626 Tel.: 03720-22549 I Fax.: 233 (0) 302 229358 E-mail: enquiry@eaaghana.com www.eaaghana.com Accra-North, Ghana Tel: 233 (0) 302 22 2199 233 (0) 302 268458 233 (0) 302 268424 I SEND GHANA MAKING THE BUDGET WORK FOR GHANA PROJECT I INDEPENDENT AUDITORS' REPORT TO SEND GHANA I Report on the financial statements I We have audited the accompanying financial statements of Making the Budget Work for Ghana Project for the year ended December 31, 2017 set out on pages 4 to 12. These financial statements I comprise the statement of financial position at December 31, 2017, the project cost summary, statement of sources and uses of funds for the year then ended, and a summary of significant accounting policies and other explanatory notes. I Project Management's responsibility for the financial statements SEND-GHANA is responsible for the preparation and fair presentation of these financial statements in I accordance with World Bank financial reporting guidelines. This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error, selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in I the circumstances. Auditors' responsibility I Our responsibility is to express an independent opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform our audit to obtain I reasonable assurance whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures I in the financial statements. The procedures selected depend on the auditors' judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. I In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the I effectiveness of the project'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 overall presentation of the financial statements. I We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. I 2 I I SEND-GHANA MAKING THE BUDGET WORK FOR GHANA PROJECT I GPSA GRANT #: TF018055 I I I INDEPENDENT AUDITORS' REPORT (CONT'D) I Opinion In our opinion, proper books of account have been kept and the accompanying financial statements, I which are in agreement therewith, give a true and fair view of the state of the project's financial affairs at December 31, 2017 and of its cost summary, sources and uses of funds for the year then ended in accordance with World Bank financial reporting guidelines and are in compliance with Grant I Agreement Number TF018055 and accounting policies. I /<-< ldrt:I~ - ICA/P/1168 I Egala & Associates (ICAG/F/2018/135) Chartered Accountants 14 Abeka Road, Tesano I PO Box AN 16626 f Accra North, Ghan a u.,. 7v/ ri I Date; I I I I I I 3 I I I SEND-GHANA I MAKING THE BUDGET WORK FOR GHANA GPSA GRANT#: TF018055 I I STATEMENT OF SOURCES AND USES OF FUNDS FOR THE YEAR ENDED DECEMBER 31, 2017 I 2017 2017 2016 I Sources Current Year US$ Cumulative US$ Cumulative US$ I Opening Bal. Funds received during the year (Page 9) 120,810 149,975 649,925 499,950 ----------- ----------- ----------- I Total 270,785 ----------- 649,925 ----------- 499,950 ----------- I Uses Operating costs 107,277 317,748 210,471 I Consulting Training 26,104 46,228 45,575 151,466 19,471 105,238 Goods 228 7,416 7,188 I Others Exchange gain & others 72,339 ----------- 118,932 (9,821) ----------- 46,593 (9,821) ----------- I Total Balance of Project funds 252,177 ----------- 18,608 631,317 ----------- 18,608 379,140 ----------- 120,810 ------- ------- ======= ======= I I I I I I 4 I I I SEND-GHANA MAKING THE BUDGET WORK FOR GHANA GPSA GRANT#: TF018055 I I PROJECT COST SUMMARY I FOR THE YEAR ENDED DECEMBER 31, 2017 I 2017 IDA 2017 2016 Current year Cumulative Cumulative I expenditure US$ expenditure US$ expenditure to date US$ I Operating costs Consulting 107,277 26,104 317,748 45,575 210,471 19,471 Training 46,228 151,466 105,238 I Goods Others 228 72,339 7,416 118,932 7,188 46,593 Exchange gain and others (9,821) (9,821) I Total ----------- 252,177 ======= ----------- 631,317 ======= ----------- 379,140 ======= I I I I I I I I 5 I I I SEND-GHANA MAKING THE BUDGET WORK FOR GHANA PROJECT I GPSA GRANT#: TF018055 I I STATEMENT OF FINANCIAL POSITION AS AT 31ST DECEMBER 2017 I Project expenditure Notes 2017 US$ 2016 US$ Operating costs 317,748 210,471 I Consulting Training 45,575 151,466 19,471 105,238 Goods 7,416 7,188 I Others Exchange gain & others 118,932 ----------- 46,593 ----------- 641,138 388,961 I Current assets ======= ======= I Accountable imprest Cash & bank balances 4 5 16,759 2,949 108,040 ----------- I Current liabilities 16,759 110,989 ----------- I Expenses incurred but not claimed 6 7,972 Net assets 649,925 499,950 I Represented by ======= ======= I International Development Agency (IDA) Grant 3 649,925 649,925 499,950 499,950 I ======= The financial statements on pages 4 to 9 were approved on behalf of the Project Management ======= ?.-5."~ ... on .... --;J;.Y.\-:1?-:-; ............. 2018 and signed on its behalf by: I I ~ Director .............................................. . Director: ... ... ... . . ... ·\· ......................... . Name:.&.m.~.~ .. ~~.)~.. A- (- ~cer~r Name: ............................................... . I Name: ................................................ . Name: ................................................ . I 6 I I I SEND-GHANA I MAKING THE BUDGET WORK FOR GHANA PROJECT GPSA GRANT#: TF018055 I I NOTES TO THE FINANCIAL STATEMENTS . FOR THE YEAR ENDED DECEMBER 31, 2017 I 1. Making the Budget Work for Ghana Project I (a) Financing agreement A Grant Agreement Number TF018055 was signed between SEND-GHANA and the I International Bank for Reconstruction and Development (IBRD)/lnternational Development Agency (IDA) of the World Bank on 22nd October 2014 for a grant of eight hundred and fifty thousand United States Dollars (US$850,000) to assist in financing the project (Making The I Budget Work for Ghana Project). b) Project description I The objective of the Project is to improve access and quality of services in priority programs in health and education sectors in approximately thirty (30) poor districts in Ghana by strengthening accountability and transparency in the budget process by 2018. I The Project consists of the following three parts: Part one: Establishing Enabling Environment for Social Accountability in Ghana I Part two: Integrating Budget Monitoring With Service Delivery Outcomes I Part three: Project Management and Knowledge and Learning 2. Accounting policies I The following are the significant accounting policies adopted in the preparation of these financial statements. I • Basis of preparation • Basis of measurement I The financial statements have been prepared under the historical cost convention. I • • Presentation of financial statements Functional and presentation currencies I The financial statements are presented in United States Dollars (US$) which is the reporting currency for the financial statements. I 7 I I I SEND-GHANA I MAKING THE BUDGET WORK FOR GHANA PROJECT GPSA GRANT #: TF018055 I I NOTES TO THE FINANCIAL STATEMENTS I FOR THE YEAR ENDED DECEMBER 31, 2017 I • Transactions and balances Transactions in foreign currencies are converted at the rate ruling on the day the transaction I took place. Current assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at the balance sheet date and property, plant and equipment translated at the rate of exchange ruling at the time of acquisition. I Gains or losses arising on foreign currency transactions are credited to or charged against recurrent expenditure in the period in which they arise. I Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate, when it is probable that the future economic benefits associated with the item will flow to the Project and the cost of the item can be measured reliably. All other I repairs and maintenance expenditures are charged to the statement of sources and uses of funds during the financial period in which they are incurred. • Depreciation I No depreciation is charged in the financial statements. I • Income Income is recognised on cash basis and credited directly to the respective donors account. I I I I I I 8 I I SEND-GHANA I MAKING THE BUDGET WORK FOR GHANA GPSA GRANT#: T018055 I I I NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2017 I 2017 2017 2016 I 3. International Development Agency (IDA) Grant Current year Cumulative Cumulative US$ US$ US$ I Receipt from IDA 149,975 ----------- 649,925 ----------- 499,950 ---------- 149,975 649,925 499,950 I ======= ====-=== ======= I 4. Accountable Imprest 2,949 I 5. Cash and bank balances I Designated account Operational account (Accra Cedi 2) 10,257 6,503 77,439 30,601 16,759 108,040 I ======= I 6. Expenses incurred but not claimed 7,972 I I I I 9 I 111:~~1 EGALA AND ASSOCIATES (CHARTERED ACCOUNTANTS & BUSINESS ADVISORS) I BRANCH OFFICE P. 0. Box 441 . 14, Abeka Road Tesano-Accra Tamale P. 0. Box AN 16626 Tel.: 03720-22549 I Fax.: 233 (0) 302 229358 E-mall: enquiry@eaaghana.com www.eaaghana.com Accra-North, Ghana Tel: 233 (0) 302 22 2199 233 (0) 302 268458 233 (0) 302 268424 I SEND GHANA MAKING THE BUDGET WORK FOR GHANA PROJECT I I INDEPENDENT AUDITORS' REPORT TO SEND-GHANA Report on the designated account I We tiave audited the Designated Account Statement of Making the Budget Work for Ghana Project for the year ended December 31, 2017 set out on page 12, established under the provisions of the Grant I Agreement No. TF018055. Project management's responsibility for the designated account I SEND-GHANA is responsible for the preparation and fair presentation of the Designated Account Statement in accordance with World Bank financial reporting guidelines. This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair I presentation of the Designated Account Statement that are free from material misstatement, whether due to fraud or error, selecting, and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances. I Auditors' responsibility Our responsibility is to express an independent opinion on the Designated Account Statement based I on our audit. We conducted our audit in accordance with International Standards on Auditing. Those standards required that we comply with ethical requirements and plan and perform our audit to obtain reasonable assurance that the Designated Account Statement is free from material misstatement. I An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the Designated Account Statement. The procedures selected depend on the auditor's judgment, including the assessment of risks and material misstatement of the Designated Account Statement, I whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's I preparation and fair presentation of the Designated Account Statement 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. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by I the management, as well as evaluating the overall presentation of the Designated Account Statement. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis I for our opinion. I 10 I I SEND-GHANA I MAKING THE BUDGET WORK FOR GHANA PROJECT GRANT #: TF018055 I I I INDEPENDENT AUDITORS' REPORT TO (CONT'D) I Opinion In our opinion Making the Budget Work for Ghana Project funds received from International Development Agency (IDA) through the Designated Account have been properly accounted for and I withdrawals were made for the purposes of the project in compliance with the provisions of the Grant Agreement Number TF018055. I I Idris Egala - ICNP/1168 Egala & Associates (ICAG/F/2018/135) Chartered Accountants I 14 Abeka Road, Tesano PO Box AN 16626 Accra North, Ghana I Date u,/6--/ 1 I I I I I I I 11 I I SEND-GHANA I MAKING THE BUDGET WORK FOR GHANA GPSA GRANT#: T018055 I I I DESIGNATED ACCOUNT STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2017 I 2017 I US$ 2016 US$ I Opening balance Add remittances during year 77,439 149,975 54,763 249,975 I Total unutilised remittances ----------- 227,414 ----------- 304,738 I Less: Transfers to Cedi account 195,000 225,000 Direct dollar expenses 21,725 1,900 I Bank Charges 432 ---------- 400 ---------- I Closing balance 217,157 ----------- 10,257 227,300 ----------- 77,439 ======= ======= I I I I I I 12 I