THE REPUBLIC OF SOUTH SUDAN NATIONAL BUREAU OF STATISTICS SOUTH SUDAN STATISTICAL CAPACITY BUILDING PROJECT IDA CREDIT No-55370-SS FINANCIAL AUDIT REPORT FOR THE TWELVE MONTHS ENDED 30TH JUNE, 2016 STRICTLY CONFIDENTIAL DECEMBER 2016 ! THE REPUBLIC OF SOUTH SUDAN NATIONAL BUREAU OF STATISTICS SOUTH SUDAN -STATISTICAL CAPACITY BUILDING PROJECT IDA CREDIT No-55370-SS FINANCIAL AUDIT REPORT FOR THE TWELVE MONTHS ENDED 30TH JUNE, 2016 Table of contents Page No Introduction 2 Project Summary 2 Main activities undertaken during the year 2 Scope of the Financial Audit Review 3 Report of the Auditor General of South Sudan 4 Statement of cash receipts and payments 5 Significant Accounting Policies 6 Notes to the financial statements 8 Audit and Management issues 10 u s Ì s INTRODUCTION 1. Background The South Sudan Statistical Capacity Building Project is financed by a Credit from the International Development Association and the Government of South Sudan. The project was established by Financing Agreement IDA CREDIT No-55370-SS entered into between the Government of the Republic of South Sudan and the International Development Association and is implemented by the National Bureau of Statistics. 2. Project summary Borrower Ministry of Finance and Economic Planning - Republic of South Sudan - Juba Project The development objective of the project is to strengthen the capacity of Development statistics producers in South Sudan to produce and disseminate official objective statistics. Project Part 1. Legal Reforms and Institutional Development components Part 2. Human Resource Development and Training Part 3. Information and Communication Technology and Statistical Infrastructure Development Part 4. Data Development and Dissemination Part 5. Project Management Sectors * Public Administration, Law and Justice * General Public Administration Sector Project South Sudan activities location Project 13th February, 2015 to 30th June, 2020. Implementation period 5 years. implementation period Project value The project cost is US$9 million for the 5 years (2014-2019) Approved US$9,000,000.00 Financed by a Credit from the International Development credit Association (IDA) Financing date November 5, 2014 Implementing South Sudan - National Bureau of Statistics agencies 3. Main activities undertaken during the year The following activities we implemented in the 2015/2016 financial year; 1. NBS Human Resource Reforms and Institutional Development (Organizational Structure, Scheme of Services, Salary & Grading structure, Training Assessment Needs & Training Program for the NSS, Performance Incentive Appraisal and Job Descriptions) 2. NBS Building Architectural & Structural designs, Bill of Quantity and Tender Documents 3. GIS software Licenses 4. Partial establishment of the Library in NBS which will be completed in the next FY year Page 2 5. Establishment of Statistics units at some MDAs (Ministry of Energy & Dams, Water Resources and Irrigation, Ministry of Trade & Industry, Ministry of Livestock & Fisheries and Ministry of Agriculture & Food Security) 6. Statistical Advocacy and Sensitization workshops - Most of the planners and policy makers understand the important of statistics. 7. Implementation of the NSDS Programs (Financial Management, Procurement, Coordination of the NSS etc). 8. Training of the MDAs staff in basic statistics and NCT staff in project management 9. Prefabs installation of the NCT offices, Internet services and Fuel for NBS. 4. Scope of the Financial Audit Review I have performed the procedures enumerated below with respect to the South Sudan Statistical Capacity Building Project Statement of Cash Receipts and Payments for the year ended 30th June, 2016. * Examined whether the Project has complied with the rules for accounting and record keeping of the Grant Agreement 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 Project can undertake follow-up measures for correction and improvement for the remaining implementation period. * Consideration of Value was the primary factor used by the Auditor to select expenditure items or classes of expenditure. The Auditor also used 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. * Exercised 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 verified 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 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 authorized checked and approved by the appropriate personnel. Page 3 i ! REPORT OF THE AUDITOR GENERAL OF SOUTH SUDAN To The Minister of Finance and Economic Planning, Government of the Republic of South Sudan: I have audited the accompanying financial statements for the South Sudan Statistical Capacity Building Project for the year ended 30th June, 2016 as set out on pages 5 to 9 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 National Bureau of Statistics 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 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 revenue collected and expenses paid under this project during the year ended 30th June, 2016 in accordance with the International Public Sector Accounting Standards on cash receipts and disbursements basis as described in note (i); Significant Accounting Policies. Steven Wondu Auditor General South Sudan National Audit Chamber Juba 1216 > This report is solely intended for the information and use of the Government 6f lic of South Sudan and the World Bank. Page 4 ! I Ì SOUTH SUDAN - STATISTICAL CAPACITY BUILDING PROJECT IDA CREDIT NUMBER: 55370-SS STATEMENT OF CASH RECEIPTS AND PAYMENTS FOR THE TWELVE MONTHS ENDED 30 JUNE 2016 Twelve Twelve Months Months ended 30.06.2016 ended 30.06.2015 Notes USD RECEIPTS Contributions 1 1,510,962.00 301,863.22 Other receipts Interest income 2 Total receipts 1,510,962.00 301,863.22 PAYMENTS Payments as per agreement 3 1,117,912.88 297,491.99 components Other payments Bank charges 4 10,190.00 3,781.46 Total payments 1,128,102.88 301,273.45 Increase / (decrease) in cash during the period 382,859.12 589.77 Cash at beginning of the period 589.77 - Increase in cash during the period 382,859.12 589.77 Cash at end of period 5 383,448.89 589.77 The financial statements n page 5 to 9 were approved for issue by the Project Management on '.'6A.-7.20 and si d on its behalf by: Director General (Administration and Finance) Project Cood to The accounting policies on page 6 to 7 and the notes on page 8 and 9 form an integral part of these financial statements. Report of the Independent Auditors - page 4. Page 5 s SIGNIFICANT ACCOUNTING POLICIES i) Basis of preparation These financial statements for the South Sudan Statistical Capacity Building 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 recognised if and when cash is received or paid. ii) Reporting entity The financial statements are for the South Sudan Statistical Capacity Building Project of the Government of the Republic of South Sudan and the International Development Association. iii) Reporting currency The reporting currency is United States Dollars (USD). iv) Foreign currency transactions Transactions in foreign currencies during the reporting period are converted into US dollars at rates ruling on the transaction dates. v) Contributions Contributions comprise where applicable deposits of advances made directly to the Project's segregated bank account by the World Bank as well as any payments made directly to suppliers and contractors by the World Bank 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 recognised upon receipt. Other contributions Any payments made directly to suppliers and contractors are recognised 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. Page 6 i s s vii) Assets Cash and cash equivalents Cash and cash equivalents comprise cash at bank and cash on hand. Receivables Receivables arising from cash payments that are recoverable from implementing State level ministries and third parties, including loans advanced are disclosed in the notes to the financial statements. 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. viii) Liabilities Payables Amounts payable are shown in the notes (6) to the financial statements. 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. At 30 June 2016 there were no accruals. 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 recognised 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. Contingent liabilities are disclosed in the notes to the financial statements. At 30 June 2016 there were no contingent liabilities. 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 recognised in the Statement of Cash Receipts and Payments as liabilities or as expenditure, but rather are disclosed in the notes to the financial statements. Page 7 s s s NOTES TO THE FINANCIAL STATEMENTS 1.CONTRIBUTIONS: 2015/2016 2014/2015 USD USD Designated Accounts 1,510,962.00 200,000.00 Direct Payments - 100,547.00 Recovered at Source - 1,316.22 Total 1,510,962.00 301,863.22 2. INTEREST INCOME 2015/2016 USD Stanbic Bank, Juba USD Designated Accounts 3. PAYMENTS AS PER COMPONENTS 2015/2016 2014/2015 USD USD COMPONENT A :Legal Reforms and Institutional Development 160,593 COMPONENT B: Human Resource Development and Training 152,083 30,677.87 COMPONENT C : ICT and Statistical Infrastructure Development 204,839 COMPONENT D: Data Development and Dissemination 458 COMPONENT E : Project Management 599,940 166,267.12 Direct Payment - 100,547.00 Totals 1,117,913 297,492 4. OTHER PAYMENTS Bank Charges 2015/16 USD 2014/15 USD CfC Stanbic Bank , Juba 10,190 3,781.46 Total 10,190 3,781.46 Page 8 p s Ì s Ì 5. CASH BALANCES CFC Stanbic Bank Juba -USD Designated Account 378,168.00 18.12 CFC Stanbic Bank Juba -SSP Account 1,834.89 571.65 Advances for missions and petty cash 3,446.00 0 Totals 383,448.89 589.77 6. PAYABLES Vinansio Tombe Muludiang 1,000.00 0 Alem General Trading 109.00 0 Grand Africa Media Services Co 38.00 0 Totals 1,147.00 0 Page 9 健 ( } 「 、 { I ) 〕 」 } l { L : l } 礼 1 l { 、