MINISTRY DF ENVIRDNMENT, SCIENCE, TECHNDLDGY 6 INNDVATIDN
Tel : 0302 - 666 049 Post Office Box M232
Fax: 0302-688 913/ 688 663
Ministries, Accra
E-mail: info@ mesti.gov.2:h
Republic of Ghana
Ghana
Website: www.mesti .Qov.gh
25TH SEPTEMBER, 2017
THE COUNTRY DIRECTOR
WORLD BANK
ACCRA.
ATTN: MR. ASFERACHEW ABATE ABEBE
TASK TEAM LEADER (TTL)
SUSTAINABLE LAND & WATER
MANAGEMENT PROJECT
SUBMISSION OF 2016 AUDIT REPORT
The Ministry of Environment, Science, Technology and Innovation (MESTI) wishes to submit
the 2016 Audit Report on the Accounts of the Sustainable Land and Water Management Project
(SLWMP).
We count on your co-operation.
Thank you.
- -\
SALIMd ~ __.,-,'
IID1:1L-SALAM
CHIEF DIRECTOR
FOR: MINISTER
Cc: Project Coordinator (SL WMP), MES TI
Chief Accountant, MESTI
Head, Internal Audit , MESTI
AUDIT SERVICE
case of reply the
umber and date of the ,
tter should be uoted
· CGAD/ADM.5/17
My Ref.No:................................ .
Good Governance
a11d Acco11ntability P. 0. Box........ ~:?.?................................
Tel: 233 (0) 302 664920/28/29 ....................... Accra .............................. .
ax: 233 (0) 302 ~75. 495
BSITE:www.ghaudit.org ...........22i:ifl..Sept6moor-;··········20 ..1.7...... .
THE CHIEF DIRECTOR
MES•I
ACCRA
TRANSMITTAL LETTER
,.
I forward herewith our report on the Accounts of the Sustain~ble Land and Water Management Project
(SL WMP) in Ghana under the Ministry of Environment, Science and Technology and Innovation
(MESTI) for the year ended 31st December, 2016.
ODAME AGYEKUM
ASSISTANT AUDITOR-GENERAI/CGAD
for: AUDITOR GENERAL
cc: The Minister
MESTI
Accra
The Auditor-General
Audit Service
Accra
REPORT OF THE AUDITORS ON THE
ACCOUNTS OF SUSTAINABLE LAND AND
WATER MANAGEMENT PROJECT (SLWMP)
FOR
MINISTRY OF ENVIRONMENT, SCIENCE,
TECHNOLOGY AND INNOVATION
FOR THE PERIOD
1ST JANUARY - 31ST DECEMBER 2016
CONTENT
Page
1. Introduction
2. Project Objective
3. Project Description 1-3
4. Audit Objectives 3
5. Audit Evidence 3
6. Project Management Team 4
7. Audit Opinion on the operating statement on sustainable land water 5-6
management project for the year ended 31st December 2016
8. Consolidated balance sheet and operating statement on sustainable land water 7-8
management project for the year under review (2016)
9. General Accounting Policy 9
10. Notes forming part of the Financial statements on sustainable land 10-14
water management project for the year ended,31 st December, 2016
11. Current Grant Financial statements and notes 15-21
12. Additional Financing Financial statements and notes 22-29
13.Managementlssues 30
I
SUSTAINABLE PROJECT REPORT
INTRODUCTION
The Ministry of Environment, Science, Technology and Innovation (MESTI) is implementing the
sustainable land and water management Project (SLWMP) in collaboration with Forest Services
Division (FSD) and Wildlife Division of the Forestry Commission (FC), Environmental Protection
Agency (EPA), the Ministry of Food and Agriculture (MOFA) and Savannah Accelerated
Development Authority (SADA).
The SLWMP is funded by Global Environmental Facility (GEF) grant to support the government of
Ghana to expand the area under Sustainable Land and water Management in selected
watersheds.
The eight-year project aimed to support the Sustainable Development initiative for the Northern
Savannah to realize the vision of a diversified and resilient economic zone in North with
significant regional environmental benefit.
PROJECT OBJECTIVE
The Specific objectives of the projects are to;
a. Strengthen spatial planning for identification of linked watershed investments in the
Northern Savannah region of Ghana.
b. To support the uptake of improved SLWM technologies within selected micro watersheds
c. To enhance conservation of biodiversity in selected micro watershed.
PROJECT DESCRIPTION
The objective of the project is to expand the area under sustainable land and water management
practices in selected watersheds.
1
Capacity Building for Integrated Spatial Planning
Provision of technical advisory services to establish a spatial planning unit within the Savannah
Accelerated Development Authority (SADA), carry out mapping and investments, and strengthen
the capacity of SADA and relevant implementing agencies to guide and undertake decision-
making for investment across the Northern Savannah region taking into account watershed and
ecological systems.
Water and Land Management
1. Carrying out of programs of activities to strengthen the capacity at the District and
Community level, and promotion and monitoring of Project activities, including: (a)
provision of technical assistance and training to conduct participatory and micro-
watershed exercises for relevant staff of the Ministry of Food and Agriculture, Ministry Of
Environment, Science Technology, and Innovation (MEST) and the Environmental
Protection Agency in ten (10) selected Districts in the 3 Northern Regions.
2. Implementing micro-washed plans, including: (a) adoption of rangeland management
activities and other technologies introduced under the Project in the selected Districts in
I the 3 Northern Regions; (b) provision of labor-intensive investments in small-scale flood
and water management infrastructure.
3. Strengthening national sustainable land management and ecosystem services
monitoring, including: (a) monitoring of environmental services generated in the Project
area, including vegetation, soil carbon, surface and ground water, through the
implementation of the environmental indices linked to the technologies introduced under
the Project; (b) determining marketable value of the ecosystem service in the Project
area; (c) identification of potential buyers of environmental services generated under the
Project; (d) assessment of the legal, policy and land ownership in the implementation of
Payment for Environment Services; and (e) conducting Project Impact Evaluation.
2
4. Carrying out a biodiversity program, including; (a) establishment of two collaborative
wildlife management areas; (b) training of the CR EMA .management units, participating
non-governmental and community-based organizations and Wildlife Division staff; {c)
carrying out a livelihood assessment study for the corridor area; (d) construction of two
water points for community use; (e) construction of additional rooms in staff housing to
facilitate the range system of staff patrol; (f) clearing access tracks between the Gbele
and Wahabu camps; (g) wildlife prevention and management activities; (h) carrying out
diagnostic studies to prepare eight forest management plans for the target forest
r,eserves; (i) carrying out forest enrichment planting and natural regeneration in degraded
areas within eight target gazetted forest reserves; and (j) carrying out of assessment
studies for carbon stocks.
AUDIT OBJECTIVES
The following are our audit objectives:
i. To express our professional opinion on whether the fund accountability statement for
the project presents fairly in all material respect;
ii. To ascertain whether proper books of accounts have been kept;
iii. To ensure that, World Bank funds received were used for the intended purpose;
iv. To evaluate and obtain sufficient understanding of the internal control structure,
assess control risk and identify reportable issues, including material internal control
weakness;
v. To ensure that, adequate records have been kept.
AUDIT EVIDENCE
The following techniques were adopted in obtaining audit evidence to enable us express our
professional opinion:
i. Interviews;
ii. Documents analysis;
iii. Re-performance of activities;
iv. Physical verification of Project Assets at Implementing agencies;
3
PROJECT MANAGEMENT TEAM FOR THE PERIOD
NAME POSITION LOCATION
Salimata - Abdul - Salam Chief Director MESTI
Alexander Kwaning Director F&A MESTI
Fredua Agyemang Director Environment MESTI
Baffour Kyei Head of Accounts MESTI
Isaac Charles Acquah Focal Person EPA
Kingsley Amoako Focal Person MOFA
Edith Abroquah Focal Person FSD
Ivy Lomotey Technical Officer MESTI
Charles Fobi Project Accountant MESTI
Rosemary Darko Procurement Officer MESTI
4
I
I
I
I INDEPENDENT AUDITOR'S REPORT ON THE OPERATING STATEMENT ON SUSTAINABLE LAND
WATER MANAGEMENT PROJECT FOR THE YEAR ENDED 31sr DECEMBER 2016
I We have audited the financial statements of the Sustainable Land and Water Management
Project (SLWMP) under the Ministry of Environment, Science, Technology and Innovation
I (MESTI) which is implementing the program in collaboration with Forest Services Division (FSD)
and Wildlife Division of the Forestry Commission (FC), Environmental Protection Agency (EPA),
the Ministry of Food and Agriculture (MOFA) and Savannah Accelerated Development Authority
I (SADA). The SLWMP is funded by Global Environmental Facility (GEF) grant to support the
government of Ghana to expand the area under Sustainable Land and water Management in
I selected watersheds.
Responsibilities of Project Management Team and Auditors
I 1. Management of the Ministry of Environment, Science, Technology and Innovation
(MESTI) is responsible for the preparation of the financial statements. Our responsibility is to
express an independent opinion on the financial statements, based on our audit.
I Basis of Opinion
2. We conducted our audit in accordance with international auditing standards. Those
I standards require that, we plan and perform our audit to obtain reasonable assurance about
whether the financial statements are free of any material misstatements. The audit includes
I examining on a test basis, evidence supporting the amounts and disclosures made by the project
I management in the financial statement. The audit also includes assessing the accounting
principles used and significant estimates made by the project management, as well as, evaluating
I the overall presentation of the financial statement.
I 3. We have obtained all the information and explanations which, to the best of our
knowledge and belief, were necessary for the purpose of our audit.
I
I
I 5
Opinion
In our opinion, the Financial Statements present fairly the Financial Position of the program and
of its result of operation.
ODAME AGYEKUM
ASSISTANT AUDITOR-GENERAL/CGAD
for: AUDITOR-GENERAL
I
6
I
CONSOLIDATED (CURRENT AND ADDITIONAL FINANCING) BALANCE SHEET AS AT 31sr
DECEMBER, 2016
(ALL AMOUNTS ARE IN USD UNLESS OTHERWISE STATED)
2016 2015
Accumulated Project Expenditure 2 12,681,149.01 9,834,527.26
CURRENT ASSETS
Cash and cash equipment 3 893,385.11 1,038,955.37
13,574,534.12 10,873,482.63
REPRESENTED BY:
GEF/IDA FUND-GRANT 4 13,573,126.31 10,872,104.32 .
OTHER CONTRIBUTIONS 5 1,407.81 1,378.31
13.574.534.12 10.873.482.63
7
I CONSOLIDATED OPERATING STATEMENT ON SUSTAINABLE LAND WATER MANAGEMENT
PROJECT (CURRENT GRANT AND ADDITIONAL FINANCING) FOR THE YEAR ENDED, 31 5T
DECEMBDER, 2016
(All amounts are stated in US Dollars)
RECEIPTS NOTES 2016 2015
GRANT RECEIVED 6 2,701,021.99 3,664,504.71
OTHER INCOME 29.50 1,378.31
2,701,051.49 3,665,883.02
PAYMENTS
Category 1 7 15,277.78 413,784.30
Category 2 8 1,516,465.40 1,891,592.06
Category 3 9 1,280,662.28 1,133,182.72
Category 4 10 34,216.29 257,491.46
2,846,621.75 3,696,050.54
NET RECEIPTS (145.570.26) (30.167 .52)
I
I
CHIEF DIRECTOR CHIEF ACCOUNTANT
I
I
8
I
NOTES
1. ACCOUNTING POLICIES
The following are the significant accounting policies adopted by the Project Management in the
preparation of the financial statements.
a. Basis of Accounting
The financial statements have been prepared on the historical cost convention and no
procedures have been adopted to reflect either the impact of specific price changes or
changes in the general level of inflation.
b. Foreign currency Transactions
Transactions in foreign currencies (other than United States Dollars) are converted at an average
exchange rate for all expenditure items during the year. Current assets denominated in foreign
currencies are translated at the rate ruling at the balance sheet date and fixed assets are
translated at the rate of exchange ruling at the time of acqu isition. Gains or losses arising on
foreign currency transactions are credited to or charged against project cost summary in the
period in which they arise .
Expenditures on Goods, Consultants services, training and operating costs incurred locally are
denominated mainly in local Currency (Ghana cedis) and have been translated using an average
rate of GHC 3. 78 and GH3.84 to US$ 1.00 respectively for Current Grant and Additional Financing
1 for 2016 transactions and the closing rate of GH3.97 to US$1.00.
I
c. Income
Income comprises
I i. Grants which represent cash remittances from Donors
ii. Exchange Gains.
iii. Interest
d. Expenditure
ognized on cash basis.
Expenditure is rec.
e. Capital Expenditure
I Capital expenditure is expensed on acquisition. No depreciation is charged.
9
I
NOTE 2. ACCUMULATED PROJECT EXPENDITURE
This represents total expenditure incurred from both Current Grant and Additional financing by
the various Categories for the year under review
Category cumulative to 31st Dec. 2016 cumulative to 31st Dec. 2015
1 875,250.72 859,972.94
2 6,712,095.53 5,195,630.13
3 3,702,739.95 2,422,077.67
4 1,391,062.81 1,356,846.52
12.681.149.01 9.834.527.26
NOTE3 CASH AND CASH EQUIVALENTS
These represent project funds held by Project Coordinating Units (PCU) and other implementing
agencies (both Current Grant and Additional Financing. The details are as follows:
2016 2015
USO USO
GEF ACCOUNT:
I. Dollar 802,282.16 1,362,698.26
11. Operating account (71,142.07) (212,757.26)
111. EPA 77,381.60 63,560.82
IV. DCS, MOFA 59,121.47 (224,398.04)
v. Wildlife 18,832.18 8,218.14
VI. FSD 6,909.77 41,633.45
893.385.11 1.038.955.37
10 I
I
NOTE4 GEF/IDA FUND
2016 2015
USO USO
Balance as at 1st January 10,872,104.32 7,207,599.61
Disbursement during the year 2,701,021.99 3,664,504.71
Balance as at 31st December, 2013 13,573,126.31 10,872,104.32
NOTE 5 OTHER CONTRIBUTIONS
2016 2015
USO USO
Balance b/d 1,378.31
Addition during the year 29.50 1,378.31
1Ao1.s1 1,378.31
NOTE6 RECEIPTS
The amount of US$ 2,701,021.99 represent funds received into the sustainable Land and Water
Management Project for both current grant and Additional financing at the National Investment
bank.
Grant No. 95451-GH Account Number 4001122055801 US$ 78,723.87
Grant No. 95451-GH Account Number US$ 2,622,298.12
US$ 2,701,021.99
NOTE7 CATEGORY 1-SADA
2016 2015
USO USO
Training & conference 10,000.00 0.00
Travelling Cost 0.00 5,869.52
Spatial Devt. Framework 0.00 407,914.83
Operating cost 5,277.78 0.00
15,277.78 413,784.35
11
I
NOTES CATEGORY 2- EPA, MOFA & WILDLIFE
2016 2015
USO USO
Training & Conference 216,495.67 162,731.76
Consultancy 86,143.94 42,196.08
Soil Carbon 0.00 20,008.66
Field Trips 147,712.45 354,137.52
Office Expenses 35,221.62 116,468.95
Awareness on CREMA 14,322.92 21,320.75
Bank Charges 953.07 0.00
Field Equipment 29,665.69 21,293.97
Running cost of Vehicles 52,770.25 71,204.56
Advertisement 0.00 1,971.18
Agric. Inputs 0.00 2,589.13
Construction of Waterholes 189,619.26 110,624.53
Office Equipment 2,594.58 82,104.89
Sensitization of Env. Safeguards 24,492.19 0.00
Assessment & Diagnostic Survey 0.00 27,413.21
Bicycles 0.00 15,824.79
Preparation of Mgt Plans 63,541.67 30,646.90
Enrichment Planting 105,807.29 193,586.01
Seedlings 39,848.80 68,037.74
Study Tour 0.00 25,587.60
Motor Bikes 5,026.05 187,383.02
Develop CREMA Mgt. Plans 39,062.50 38,611.85
Fire Control & prevention 56,570.31 85,668.46
Motor Vehicles 0.00 35,541.51
Impact Evaluation 9,921.88 43,584.91
I Watershed planning Exercise
Awareness creation in Wildlife Mgt
73,072.92
0.00
59,005.39
27,439.35
CREMA Corridor Mgt. 0.00 46,609.16
Negotiate and agree on CREMA boundaries 13,020.83 0.00
Inaugurate and agree on CREMA boundaries 9,895.83 0.00
Rehabilitation of bungalows 36,466.59 0.00
I Sign Boards
Awareness on Biodiversity conservation
34,771.03
12,434.90
0.00
0.00
Printing of Mgt. Plans 5,838.28 0.00
Community Range lands 108,995.82 0.00
Demonstration and Extension support 32,057.29 0.00
Demarcate and map out CREMA boundaries 23,240.89 0.00
PES Auction beneficiaries 22,041.67 0.00
12
I
Awareness creation in wildlife mgt. 5,208.33 0.00
Implement mgt. plans 19,650.88 0.00
1.516.465.40 1.891.592.06
NOTE 9. CATEGORY 3 Sub Projects
2016 2015
USO USO
Sub-Projects 1,280,662.28 1,133,182.72
NOTE 10. CATEGORY4- Project Coordinating Unit
2016 2015
USO USO
Training& conference 36,098.78 33,773.60
Audit Fees 0.0 10,768.33
Contract Staff 15,828.20 17,340.50
Steering Committee meetings 2,485.68 0.00
Office Expenses 5,993.72 7,378.33
Bank Charges 1,269.75 1,374.42
I Exchange Difference {Gain)/Loss
Running of vehicles
{79,405.22)
11,203.38
176,020.91
10,835.37
Office Equipment 1,759.44 0.00
Field Trips 38,982.56 0.00
34.216.29 257.491.46
13
I
SPECIAL ACCOUNT RECONCILIATION STATEMENT AS AT 31 ST DECEMBER, 2016
Balance as at 1st January:
NIB Dollar Account 1,362,698.26
NIB Cedi Account (212,757.26)
Ecobank- EPA Account 63,560.82
Ecobank- MOFA Account (224,398.04)
Ghana Commercial Bank - Wildlife 8,218.14
GCB-FSD 41,633.45
Reimbursement through special Account 2,701,021.99
3.739.977.36
Balance as at 3pt December:
NIB Special Account 802,282.16
NIB Cedi -Account (71,142.07)
ECOBANK- EPA 77,381.60
ECOBANK- MOFA Account 59,121.47
GCB - Wildlife 18,832.18
GCB- FSD 6,909.77
Amount of eligible expenditure 2,846,592.25
3. 739.977 .36
I
I
CURRENT GRANT
BALANCE SHEET AS AT 31 5T DECEMBER, 2016
{ALL AMOUNTS ARE IN USO UNLESS OTHERWISE STATED)
Notes 2016 2015
Accumulated Project Expenditure 2 7,737,020.80 7,472,387.00
CURRENT ASSETS
Cash and cash equipment 3 252,466.77 438,347.20
7.989.487.57 7 .910. 734.20·
REPRESENTED BY:
GEF/IDA FUND-GRANT 4 7,989,428.57 7,910,704.70
OTHER CONTRIBUTIONS: 5 59.00 29.50
7.989.487.57 7 .910. 734.20
15
I
I OPERATING STATEMENT FOR THE YEAR ENDED, 31 5T DECEMBDER, 2016
(All amounts are stated in US Dollars)
NOTES
RECEIPTS
Grant Received 6 78,723.87 703,105.09
Interest Earned 29.50 29.50
78,753.37 703,134.59
PAYMENTS
Category 1 7 15,277.78 413,784.30
Category 2 8 191,808.15 430,919.54
Category 3 9 48,443.39 299,825.96
Category 4 10 9,104.48 189,380.48
264,633.80 1,333,910.28
NET RECEIPTS (185,880.43) (630,775.69)
I
NOTES
1. ACCOUNTING POLICIES
The following are the significant accounting policies adopted by the Project Management in
the preparation of the financial statements.
a. Basis of Accounting
The financial statements have been prepared on the historical cost convention and no
procedures have been adopted to reflect either the impact of specific price changes or
changes in the general level of inflation.
b. Foreign currency Transactions
Transactions in foreign currencies (other than United States Dollars) are converted at an
average exchange rate for all expenditure items during the year. Current assets denominated
in foreign currencies are translated at the rate ruling at the balance sheet date and fixed assets
are translated at the rate of exchange ruling at the time of acquisition. Gains or losses arising
on foreign currency transactions are credited to or charged against project cost summary in
the period in which they arise.
Expenditures on Goods, Consultants services, training and operating costs incurred locally are
denominated mainly in local Currency (Ghana cedis) and have been translated using an average
rate of GHC 3.78 to US$ 1.00 for 2016 transactions.
c. Income
Income comprises
2. Grants which represents cash remittances from Donors
3. Exchange Gains.
I 4. Interest
d. Expenditure
Expenditure is recognized on cash basis.
e. Capital Expenditure
Capital expenditure is expensed on acquisition. No depreciation is charged.
17
I 2. ACCUMULATED PROJECT EXPENDITURE
Category Cumulative to 31st Dec. 2016 Cumulative to 3pt Dec. 2015
1 875,250.72 859,972.94
2 3,926,765.76 3,734,957.61
3 1,637,164.30 1,588,720.91
4 1,297,840.02 1,288,735.54
7. 737,020.80 7.472.387.00
3. CASH AND CASH EQUIVALENTS
These represent project funds held by PCU and other implementing agencies. The details are
as follows:
I 2016 2015
USO USO
I. GEF special Account 175,062.77 554,758.88
I 11.
111.
Operating account
EPA
(27,141.31)
(4,962.46)
132,404.89
24,998.70
I IV. DCS, MOFA (25,040.62) (257,629.81)
V. Wildlife (15,451.61) (16,185.46)
I VI. AF 1 ACCOUNT 150,000.00 0.00
I ZS2.466,7Z ~38,341,20
4. GEFLf DA FUND 2016 2015
USO USO
Balance as at pt January 7,910,704.70 7,207,599.61
Disbursement during the year 78,723.87 703,105.09
Balance as at 31st December, 2016 7.989.428.57 7 .910. 704. 70
I
5. OTHER CONTRIBUTIONS 2016 2015
USO USO
Balance as at 1st January 29.50 0.00
Bank Interest 0.00 0.00
Addition during the year 29.50 29.50
.5.9.....00 ~
6. RECEIPTS
These represent amounts received into the sustainable Land and Water Management
Project Grant No. 95451-GH Account Number 4001122055801 at the National Investment
bank as follows:
Receipts Amount
Replenishment No. 14 71,998.44
Replenishment No. 15 6,725.43
78.723.87
7. CATEGORY 1 - SADA 2016 2015
USO USO
Training & Conference 10,000.00 0.00
Spartial Devt, Framework 0.00 407,914.80
Travelling Cost 0.00 5,869.50
I Office Exp~nses 5,277.78
15.277.78
0.00
413.784.30
I
8. CATEGORY 2- EPA, MOFA & WILDLIFE
2016 2015
USO USO
Training & Conference 0.00 19,178.29
Consultancy 0.00 34,120.82
Soil Carbon 0.00 20,008.66
International Conference 0.00 0.000
Field Trips 0.00 172,127.22
Office Expenses 0.00 46,446.51
Demonstrations 0.00 0.00
Running cost of Vehicles 2,188.89 25,077.65
Advertisement 0.00 746.73
Agric Inputs 0.00 2,589.13
Construction of Waterholes 189,619.26 110,624.53
191.808.15 430.~19.64
9. CATEGORY 3
2016 2015
USO USO
Sub-Projects 48,443.39 299,825.96
10. CATEGORY 4
2016 2015
USO USO
Training& conference 0.00 7,994.45
Audit Facilitation Expenses 0.00 10,768.33
Contract Staff 2,978.20 17,340.50
Office Expenses 264.55 7,378.33
Bank Charges 549.35 820.50
Field Trips 5,312.38 0.00
Exchange Difference 0.00 137,953.53
Running of vehicles 0.00 7,124.84
9.104.48 189.380.48
I
SPECIAL ACCOUNT RECONCILIATION STATEMENT AS AT 31 ST DECEMBER, 2016
Balance as at pt January:
NIB Dollar Account 554,758.88
NIB Cedi Account 132,404.89
Ecobank - EPA Account 24,998.70
Ecobank- MOFA Account (257,629.81)
Ghana Commercial Bank - Wildlife (16,185.46)
Reimbursement through special Account 78,723.87
517.071.07
Balance as at 3pt December:
NIB Special Account 175,062.77
NIB Cedi Account (27,141.31)
Ecobank - EPA Account (4,962.46)
Ecobank- MOFA Account (25,040.62)
GCB - Wildlife (15, 451, 61)
AF 1 Account 150,000.00
Amount of eligible expenditure 264,604.30
517,071.07
21
I
ADDITIONAL FINANCING 1
BALANCE SHEET AS AT 31 5T DECEMBER 2016
{ALL AMOUNTS ARE IN USO UNLESS OTHERWISE STATED)
NOTES 2016 2015
Accumulated Project Expenditure 2 4,944,128.21 2,362,140.26
CURRENT ASSETS
Cash and Cash equivalent 3 640,918.34 600,608.17
5.585.046.55 2.962.748.43
REPRESENTED BY
GEF/IDA FUND-GRANT 4 5,583,697.74 2,961,399.62
OTHER CONTRIBUTIONS 5 1,348.81 1,348.81
5.585.046,55 Z,96Z.Z48.~13
OPERATING STATEMENT FOR THE YEAR ENDED, 31sr DECEMBDER, 2016
(All amounts are stated in US Dollar)
RECEIPTS NOTES 2016 2015
Grant Received 6 2,622,298.12 2,961,399.62
Interest Earned 0.00 1,348.81
2.622.298.12 2.962.748.43
PAYMENTS
Category 2 7 1,324,657.25 1,460,672.52
Category 3 8 1,232,218.89 833,356.76
Category 4 9 25,111.81 68,110.98
2.581.987 .95 2.362.140.26
NET RECEIPTS 40,310.17 600,608.17
NOTES
1. ACCOUNTING POLICIES
The following are the significant accounting policies adopted by the Project Management in
the preparation of the financial statements.
a. Basis of Accounting
The financial statements have been prepared on the historical cost convention and no
procedures have been adopted to reflect either the impact of specific price changes or
changes in the general level of inflation.
b. Foreign currency Transactions
Transactions in foreign currencies (other than United States Dollars) are converted at an
average exchange rate for all expenditure items during the year. Current assets denominated
in foreign currencies are translated at the rate ruling at the balance sheet date and fixed assets
are translated at the rate of exchange ruling at the time of acquisition. Gains or losses arising
on foreign currency transactions are credited to or charged against project cost summary in
I the period in which they arise.
Expenditures on Goods, Consultants services, training and operating costs incurred locally are
denominated mainly in local Currency (Ghana cedis) and have been translated using an average
rate of GHC 3.84 to US$ 1.00 for 2016 transactions.
I c. Income
Income comprises
5. Grants which represents cash remittances from Donors
6. Exchange Gains.
7. Interest
d. Expenditure
Expenditure is recognized on cash basis.
e. Capital Expenditure
Capital expenditure is expensed on acquisition. No depreciation is charged.
I
2. ACCUMULATED PROJECT EXPENDITURE
Category Cumulative to 3pt December, 2016 cumulative to 31st Dec. 2015
2 2,785,329.77 1,460,672.52
3 2,065,575.65 833,356.76
4 93,222.79 68,110.98
4.944.128.21 2.362.140.26
3. CASH AND CASH EQUIVALENTS
These represent project funds held by PCU and other implementing agencies. The details are
as follows :
2016 2015
USO USO
GEF special Account:
I. Dollar 627,219.39 807,939.38
11. Operating account (44,000.76) {345,162.15)
I 111.
IV.
EPA
DCS, MOFA
82,344.06 38,562.12
84,162.09 33,231.77
V. Wildlife 34,283.79 24,403.60
VI. FSD 6,909.77 41,633.45
VII. Current Grant (150,000.00) 0.00
640.918.34 600.608.17
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4. GEF/IDA FUND 2016 2015
USO USO
Balance as at ist January 2,961,399.62 0.00
Disbursement during the year 2.622.298.12 2.961.399.62
Balance as at 31st December, 2016 5.583.697.74 Z.961.399.62
5. OTHER CONTRIBUTIONS 2016 2015
USO USO
Balance as at ist January 1,348.81 0.00
Addition during the year (Exchange Gain) 0.00 1,348.81
1,348.81 1,348.81
6. GRANT RECEIVED
These represent amounts received into the sustainable Land and Water Management
Project Grant No. 95451-GH Account Number 4001122055801 at the National Investment
bank as follows:
Date Receipts Amount
5/6/15 Replenishment 4 1,000,000.00
23/9/15 Replenishment 5 666,321.83
31/12/15 Replenishment 6 955,976.29
2.622.298.12
7. CATEGORY 2 - EPA, MOFA, WILDLIFE & FSD
2016 2015
USO USO
Training & Conference 216,495.67 143,553.50
Running of Vehicles 50,581.36 46,127.06
Watershed Planning Exercise 73,072.92 59,005.39
Negotiate and agree on CREMA boundaries 13,020.83 0.00
Inaugurate & Devolve power of Authority to CREMA 9,895.83 0.00
Fire Prevention & Control 56,570.31 85,668.46
Rehabilitation of Bungalows 36,466.59 0.00
Sign Boards 34,771.03 0.00
Awareness on Biodiversity conservation 12,434.90 0.00
Printing of Mgt. plans 5,838.28 0.00
Consultancy 86,143.94 8,075.26
Community Range Lands 108,995.82 0.00
Field Trips 147,712.45 182,010.30
Office Expenses 35,221.62 70,022.44
Bank charges 953.07 0.00
Office Equipment 2,594.58 82,104.89
Awareness on CREMA 14,322.92 21,320.75
Demonstration and Extension support 32,057.29 0.00
Demarcate and map out CREMA boundaries 23,240.89 0.00
Preparation of Mgt Plans 63,541.67 30,646.90
Enrichment Planting 105,807.29 193,586.01
Seedlings 39,848.80 68,037.74
Sensitization 24,492.19 0.00
Field Equipment 29,665.69 21,293.97
PES Auction Beneficiaries 22,041.67 0.00
Motor Bikes 5,026.05 187,383.02
Develop CREMA Magt. Plans 39,062.50 38,611.85
Running of creation in Wildlife Mgt 5,208.33 27,439.35
Impact Evaluation 9,921.88 43,584.91
Implement Mgt Plans 19,650.88 0.00
Assessment & Diagnostic survey 0.00 27,413.21
Bicycles 0.00 15,824.79
Study Tour 0.00 25,587.60
Advertisement 0.00 1,224.45
Motor Vehicle 0.00 35,541.51
CREMA Corridor Mgt. 0.00 46,609.16
1.324.657.25 1.460.672.52
8. CATEGORY 3
2016 2015
USO USO
Sub-Projects 1,232,218.89 833,356.76
9. CATEGORY 4
2016 2015
USO USO
Training& conference 36,098:78 25,779.15
Contract Staff 12,850.00 0.00
Steering Committee Meetings 2,485.68 0.00
Office Equipment 1,759.44 0.00
Office Expenses 5,729.17 0.00
Bank Charges 720.40 553.92
Field Trips 33,670.18 0.00
Exchange Difference (79,405.22) 38,067.38
Running cost of vehicles 11.203.38 3,710.53
25.111.81 68.110.98
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SPECIAL ACCOUNT RECONCILIATION STATEMENT AS AT 31 ST DECEMBER, 2016
Balance as at 1st January:
NIB Dollar Account 807,939.38
NIB Cedi Account
(345,162 .15)
Ecobank - EPA Account 38,562.12
Ecobank- MOFA Account 33,231.77
Ghana Commercial Bank - Wildlife 24,403.60
Ghana commercial bank - FSD 41,633.45
Reimbursement through special Account 2,622,298.12
3.222.906.29
Balance as at 31st December:
NIB- Dollar Account 627,219.39
NIB- Cedi Account (44,000.76)
Ecobank - EPA Account 82,344.06
Ecobank- MOFA Account 84,162.09
Current Grant (150,000.00}
GCB - Wildlife 34,283.79
FSD 6,909.77
I Amount of eligible expenditure 2,581,987.95
3,222,906.29
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MANAGEMENT ISSUE
FAILURE TO PROVIDE EXPENDITURE RETURNS (USD)-15,000
Criteria
Best accounting practice requires that disclosures are important in communicating financial
information to stakeholders. International Public Sector Accounting Standard (IPSAS) requires
those charged with the provision of financial information to disclose information which may
influence stakeholders' decision when such information is known to them.
Condition
Contrary to the above practice we observed that, SADA office in Tamale failed to provide
returns on the amount of USD 15,000 transferred into their account for capacity building,
operating cost for maintenance of office equipment and administration as per the 2016 work
plan.
Cause
The lapse could be attributed to non-enforcement of supervisory control.
Effect
In view of the above lapse the audit team could not verified nor confirmed whether the money
released to SADA was utilized according to the provisions in the work plan.
Recommendation
We recommended that management should demand the submission of those returns for audit
validation in order to give fair opinion on the accounts audited.
Management's Response
According to Management they have persistently demanded the returns for the amount of USD
15,000.00 from SADA office in Tamale. Currently a team of three (3) members has been
constituted to visit the SADA office to investigate the cause of the failure and possibly retrieve
the relevant documents by the end of September, 2017.
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