Financial Statements of Projects Funded By the International Bank For Reconstruction and Development - Grant #TF -0A2803 (Additional Grant for the Emergency National Poverty Targeting Program “NPTP”) And Auditor’s Report Presidency of the council of Ministers Year Ended December 31, 2020 Contents Page Independent Auditor's Report 3 Statement of designated Account of Project Funded by the International Bank For Reconstruction and Development - Grant #TF -0A2803 4 (Additional Grant for the Emergency National Poverty Targeting Program) Statement of Project Expenditures of Project Funded by the International Bank For Reconstruction and Development - Grant #TF -0A2803 5 (Additional Grant for the Emergency National Poverty Targeting Program) Cumulative Statement of Project Expenditures of Project Funded by the International Bank For Reconstruction and Development - Grant #TF- 0A2803 6 (Additional Grant for the Emergency National Poverty Targeting Program) Notes to the Financial Statements/ Project Expenditures 7 Independent Auditor’s Report Lebanese Republic Presidency of the Council of Ministers World Bank Grant #TF- 0A2803 (Additional Grant for the Emergency National Poverty Targeting Program) Beirut - Lebanon We have audited the accompanying financial statements comprising of the statement of Special Account, Project Expenditures, and Statement of Expenditures of Project Funded by the International Bank for Reconstruction & Development, Grant# TF-0A2803 for the year ending December 31, 2020. The Project financial statements are the responsibility of the Lebanese Republic Presidency of the Council of Ministers. Our responsibility is to express an opinion on these financial statements based on our audit. We have also audited compliance with the laws, regulations, guidelines and provisions governed by the Grant Agreement for the year ended December 31, 2020. We conducted our audits in accordance with International Standards on Auditing. Those Standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement and about whether the “Additional Grant for the Emergency National Poverty Targeting Program” has complied with the laws, regulations, guidelines and provisions governed by the Grant Agreement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion: a) The accompanying Financial Statements present fairly, in all material respects, the cash receipts and payments of the Additional Grant for the Emergency National Poverty Targeting Program for the year ending December 31, 2020 is in accordance with the International Public Sector Accounting Standards(IPSAS), under the cash basis of accounting; b) Internal control over financial reporting involved in the preparation of replenishments, direct payments, payments through special commitments, and reimbursements i.e. expenditures reimbursed on the basis of Statements of Expenditures can be relied upon to support the related withdrawals as of December 31, 2020; c) The project was in all material respects in compliance with the laws, regulations, guidelines and provisions governed by the Grant agreement. April 26, 2020 Alyafi Group Mowafak Alyafi, Ph.D. Managing Partner Presidency of the Council of Ministers Additional Grant Emergency National Poverty Targeting Program “NPTP” Financial Statements 31 December 2020 4 Statement of Designated Account (TF A2803) Note USD Balance as of January 1, 2020 229,489 Add: World Bank replenishments - Deduct: WFP amount paid by special commitments: Individual consultant 3 171,266 Consultant Firms 3 4,013 Goods 3 14,185 Total 189,464 Balance December 31, 2020 40,025 Presidency of the Council of Ministers Additional Grant Emergency National Poverty Targeting Program “NPTP” Financial Statements 31 December 2020 5 Statement of Project Expenditures Total Note USD Individual Consultant 3 171,266 Consultant Firms 3 4,013 Goods 3 14,185 189,464 See accompanying notes to the financial statements. Presidency of the Council of Ministers Additional Grant Emergency National Poverty Targeting Program “NPTP” Financial Statements 31 December 2020 6 Cumulative Statement of Project Expenditures Total Note USD Individual Consultant 4 316,127 Firms 4 129,643 Goods 4 14,185 Administration cost for WFP 4 113,305 Social Assistance WFP 4 6,699,953 Swift Cost 4 20 7,273,233 See accompanying notes to the financial statements. Presidency of the Council of Ministers Additional Grant Emergency National Poverty Targeting Program “NPTP” Financial Statements 31 December 2020 7 Notes to the Financial Statements 1. Project Background: The objective of the Project is to expand the coverage and enhance the social assistance package of the National Poverty Targeting Program (NPTP) to Lebanese affected by the Syrian crisis and all Lebanese households under the Extreme Poverty Line, as well as to assess the effectiveness of NPTP graduation pilot. The Project consists of the Original Project, as amended (includes a new Part III as set out below): Part I: Administration of NPTP Provision of technical assistance for carrying out a program of activities aimed at ensuring the efficient administration and implementation of the NPTP; such activities to include, inter alia: a) Supporting the NPTP management team in the MOSA and the PCM; b) Recertification of applicants including refining the NPTP application forms and proxy-mean testing questionnaire; c) Upgrading the NPTP management information system; d) Refining the grievance and redress mechanism for improved efficiency and transparency; e) Monitoring and evaluating of the NPTP implementation, including evaluating the business processes of the NPTP , and implementation of short quantitative and qualitative surveys; f) Carrying out an outreach campaign to enroll new Beneficiaries particularly in the poorer and remote areas; g) Providing training to Beneficiaries in the use of Food Vouchers , and providing technical assistance to the NPTP Project Unit in managing, assessing and monitoring the implementation of the e-card Food Voucher program; h) Provision and maintenance of the e-cards for the Food Vouchers; i) Capacity building and training for NPTP staff and social workers in the implementation of the NPTP; j) Provision and maintenance of information technology and other equipment for the NPTP k) Provision of Allowances for the NPTP social workers to enable them to carry out their tasks and enhance their productivity; and l) Strengthening the capacity of the Fiduciary Operations Team to carry out the Project’s fiduciary responsibilities, through the recruitment of procurement staff, a financial management specialist and an internal auditor. Part II: Social Assistance: Supporting an e-card Food Voucher program for the provision of basic food needs to Lebanese affected by the Syrian crisis and Lebanese households under the Extreme Poverty Line. Part III: NPTP Graduation Pilot Pilot a graduation program to promote increased and sustainable levels of income among the poorest NPTP beneficiary households, to improve their overall relative poverty levels, through provision of self- employment opportunities and delivery of a comprehensive package of services to male and female members of targeted NPTP households. Presidency of the Council of Ministers Additional Grant Emergency National Poverty Targeting Program “NPTP” Financial Statements 31 December 2020 8 The following table specifies the categories of eligible Expenditures that may be financed out of the proceeds of the grant (“Category”), the allocations of the amounts of the grant to each category, and the percentage to be financed for eligible Expenditures in each category: Percentage of Amount of the grant Expenditures to be Allocated Financed Category (expressed in USD) (inclusive of taxes) (1) Goods, Training, Operating Costs, non- consulting services, under part I (a), (e) ,(g), (h), (i) and III of the Project 3,300,000 100% (2) Food Vouchers under part II of the Project 6,700,000 100% Total amount 10,000,000 . Presidency of the Council of Ministers Additional Grant Emergency National Poverty Targeting Program “NPTP” Financial Statements 31 December 2020 9 2. Summary of Significant Accounting Policies The accompanying statement of special account, project expenditures and statement of expenditures are prepared on the cash basis of accounting. On this basis, disbursements from Grant are recognized when received and expenses are recognized when paid rather than when incurred. 3. Details of Expenditures TF0A2803 Expenditures paid for the Additional Grant for the Emergency National Poverty Targeting Program during the year 2020 are detailed as follows: Amount financed Category/Component Description from grant proceeds (100%) Individual consultant Christelle Khalil Program Sub-Coordinator 27,986 Jessy El khoury Procurment officer 24,000 Amani Najjar Financial Management Specialist 36,800 Ramzi Fanous Part Time Statistical Consultant-CMU 10,080 Danielle Dagher IT Specialist CMU 30,400 Michel Sarkis IT busines Officer 21,000 Bashir Osmat Social Poverty Specialist 21,000 Amount paid from special account 171,266 Direct Payment 0 Total 171,266 Firms AL Yafi Group External Finanacial Auditor 4,013 Amount paid from special account 4,013 Direct Payment 0 Total 4,013 Goods Amal Hanna Cleaning Service 4,500 Ladkani office solutions Toner For MOSA 720 Quantech Maintenance for CMU servers 1,825 Badih Chehab CMU operating Cost 140 Marie Ghya Perdium Marie Ghya 7,000 Amount paid from special account 14,185 Direct Payment 0 Total 14,185 Total 189,464 Presidency of the Council of Ministers Additional Grant Emergency National Poverty Targeting Program “NPTP” Financial Statements 31 December 2020 10 4. Details of Cumulative Expenditures TF0A2803 Cumulative Expenditures paid for the Additional Grant for the Emergency National Poverty Targeting Program during the year 2020 are detailed as follows: Amount financed Category/Component Description from grant proceeds (100%) Cumulative Individual consultant Christelle Khalil Program Sub-Coordinator 82,019 Jessy El khoury Procurment officer 59,856 Amani Najjar Financial Management Specialist 91,772 Ramzi Fanous Part Time Statistical Consultant-CMU 10,080 Danielle Dagher IT Specialist CMU 30,400 Michel Sarkis IT busines Officer 21,000 Bashir Osmat Social Poverty Specialist 21,000 Amount paid from special account 316,127 Direct Payment - Total 316,127 Firms AL Yafi Group External Financial Auditor 10,989 Consultancy assignment for carrying out market 43,575 Content SARL analysis in NORTH Consultancy assignment for carrying out market 31,115 Content SARL analysis in BEKAA Impact Atals NPTP-G Monitoring Software 43,965 Amount paid from special account 129,643 Direct Payment - Total 129,643 Goods Amal Hanna Cleaning Service 4,500 Ladkani office solutions Toner For MOSA 720 Quantech Maintenance for CMU servers 1,825 Badih Chehab CMU operating Cost 140 Marie Ghya Perdium Marie Ghya 7,000 Amount paid from special account 14,185 Direct Payment 0 Total 14,185 Category 1 component part of 1 Administration cost for WFP 113,305 Amount paid from special account - Direct Payment 113,305 Total 113,305 Presidency of the Council of Ministers Additional Grant Emergency National Poverty Targeting Program “NPTP” Financial Statements 31 December 2020 11 Category 2 component 2 Social Assistance (WFP) 6,699,953 Amount paid from special account - Direct Payment 6,699,953 Total 6,699,953 Swift Cost Swift Cost Bank charges 20 Total 7,273,233 Presidency of the Council of Ministers Additional Grant Emergency National Poverty Targeting Program “NPTP” Financial Statements 31 December 2020 12 5. Cumulative Statement of Special Account Expenditure The cumulative drawings and payments made in this account since inception up to December 31, 2020 are detailed as follows: Beginning Movement Cumulative Balance 2020 balance 2020 USD USD USD World Bank initial deposit 500,000 - 500,000 Direct Payments 6,813,258 - 6,813,258 Total 7,313,258 - 7,313,258 Deduct: Payments for project expenditures funded by the Grant: Administration cost of WFP 113,305 - 113,305 Social Assistance WFP 6,699,953 - 6,699,953 Consultants' services 270,491 175,279 445,770 Swift Cost 20 - 20 Goods 14,185 14,185 Total 7,083,769 189,464 7,273,233 Balance – December 31, 229,489 (189,464) 40,025