THE WORLD BANK GROWTH AND EMPLOYMENT PROJECT (FEDERA L MINIS TR Y OF INDUS TR Y, TRA DE AND INVESTMENT) AUDITED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31ST DECEMBER, 2015 BY Ola€U OFFICE OF THE AUDITOR-GENERAL FOR THE FEDERATION Plot 273, Central Business District, Abuja To: Management Committee of the Growth and Employment Project REPORT OF THE INDEPENDENT AUDITORS ON THE FINANCIAL STATEMENTS OF THE GROWTH AND EMPLOYMENT PROJECT FOR THE YEAR ENDED 31ST DECEMBER, 2015. We have audited the accompanying financial statements of the Growth and Employment Project for the year ended 31st December, 2015. These financial statement comprise the statement of financial position and the cash flow statement for the year then ended, and a summary of significant accounting policies and other explanatory information on the statements. Management Committee's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with the International Public Sector Accounting Standards (IPSAS) and legislation, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards for Supreme Audit Institutions (ISSAls). These standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from 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 judgment, 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 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 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 overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements present fairly, in all material respects, the financial position of Growth and Employment Project as at 31st December, 2015 and of its financial performance and its cash flows for the year then ended in accordance with IPSAS. The Statements of Expenditures (SOEs) are in agreement with the Books of Accounts and adequate supporting documentation was maintained to support the claims to the World Bank for reimbursements of expenditure and which were eligible for financing under the financing agreement. MRS. F. N. A , FCNA, ACTI Acting Auditor-General for the Federation Office of the Auditor-General for the Federation, Audit House, Plot 273, Samuel Ademulegun Street, Central Business District, P.M.B. 128 Garki, Abuja. 17th June, 2016 GROWTH AND EMPLOYMENT (GEM) PROJECT FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2015 IDA CREDIT NO 103499 ACCOUNTING POLICIES Accounting convention The Financial Statements have been prepared using the historical cost convention. Basis of Accounting The Cash Basis of Accounting has been adopted in the preparation of the project's Financial Statements. Foreign Currency Income and Expenditure items in Foreign Currencies are converted to Naira at the rates ruling at the transaction dates. Assets and Liabilities expressed in Foreign Currencies are converted to Naira at the rates ruling at the Balance Sheet Date and gains and losses on such conversion are credited or charged to Reserve in the Year which they arise. Fixed Assets and Depreciation (a) Fixed Assets are those intended for use over a Year exceeding one Accounting Year and which value per unit is not below N100,000 (b) Items with respective unit cost below N100,000 are classified as "Special Assets" and included in a special project Assets Register. (c) No Depreciation is charged on the project's Fixed Assets, as there are no revenue to be matched against such charges and because the cash basis of Accounting is in effect. Inventory Inventory is valued at the Lower of Cost and Net Realizable Value. I GROWTH AND EMPLOYMENT (GEM) PROJECT FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2015 IDA CREDIT NO 103499 BALANCE SHEET AS AT DECEMBER 31, 2015 NOTES 2015 2014 N N N EMPLOYMENT OF FUNDS Development Capital Expenditure 1 677,664,296.35 296 278,360.44 Development Operating Expenditure 2 355,646,286.55 244,664,112.61 Fixed Assets 3 5,567,355.00 166,697,687.13 1,038,877,938.32 707,640,160.41 CURRENT ASSETS Cash & Bank 4 (28,439,641.88) 83,629,370.08 Total Net Assets 1,010,438,294.44 791,269,370.49 FINANCED BY IDA Credit 5 1,007,708,765.21 790,542,119.01 Others 6 2,729,531.23 72A 3.4 1,010,438,296.44 791,269,370.49 ------- National Project Coordinator -7------------------ Head of Financial Management Unit 2 GROWTH AND EMPLOYMENT (GEM) PROJECT FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2015 IDA CREDIT NO 103499 Statement of Income and Expenditure Notes 2015 2014 Income IDA Credit 5 1,007,708,765.21 790,542,119.61 Other Income 6 2,729,531.23 727,413.48 1,010,438264 791,269.532,49 Expenditure Development Capital Cost 1 677,664,296.35 296,278,360.44 Development Operating Cost 2 355,646,286.97 244,664,112.84 Fixed Asset 3 5,567,355.00 166,697,687.13 1,038,877,938.32 707,640,160.41 Excess Income over Expenditure 5 (28,439,641.88) 829,72..08 3 GROWTH AND EMPLOYMENT (GEM) PROJECT FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2015 IDA CREDIT NO 103499 STATEMENT OF CASH FLOW 2015 2014 Cash Flow from Operating Activities Assets Purchased [5,567,355.00] [166,697,687.13] Other Expenditure [1,033,310,583.321 [540,942,473.281 r1.038.877.938.32 1707.640.1 Cash Flow from Investment Activities Bank Interest & others 2,729,531.23 727,413.48 Net Cash Flow from Investment Activities 2,729,531.23 727,413.48 Cash Flow from Financing Activities IDA Credit 926,808,926.36 576,714,953.17 Net Cash Flow from Financing Activities 926,808A26.36 576.714,953.17 Cash & Cash Equivalent for the Year (112,069,011.96) [130,197,793.76] Cash & Cash Equivalent B/F 83,629,370.08 213.827,163.84 Cash & Cash Equivalent C/F (28,439,641.) 83,629.370.08a 4 GROWTH AND EMPLOYMENT (GEM) PROJECT FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2015 IDA CREDIT NO 103499 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2015 N(2014) N(2015) 1. Development Capital Expenditure: PAU Enterprise Dev Centre 22,061,235.84 234,098,992.87 Project ACT 651,982,255.51 53,053,046.80 National Bureau of Statistics 3,033,755.00 1,910,320.77 GTZ 0.00 7,216,000.00 Non Consult.(LM) 587,050.00 0.00 677.664,296.35 296.278,360.44 2 Development Operating Cost a. Project Management & Admin. Exp. Media Expenses 27,084,904.12 14,079,757.50 Office Rehabilitation 6,565,389.17 36,718,519.60 Telephone & Internet Services 3,818,000.00 5,764,806.00 Computer Consumables 1,249,380.00 580,125.00 Local Travel 500,350.00 670,303.00 VAT FIRS 5,985,580.65 WHT FIRS 10,102,428.17 Local running 368,756.00 532,920.00 Bank charges 1,079,275.37 1,092,871.92 PrintingPhotocopy 4,083,546.27 560,200.00 Meeting Expenses 476,300.00 4,780,300.00 Insurance of Vehicle 3,461,566.86 1,904,186.60 Office Stationary 383,775.00 2,995,087.50 Mission/Implementation support 4,504,938.00 10,451,884.50 Books/Peridicals Subscription 634,005.00 Publicity & Advert 106,376.00 Evaluation in Hotel 8,047,465.00 62,307226.52 96,218,970.44 5 GROWTH AND EMPLOYMENT (GEM) PROJECT IDA CREDIT NO 103499 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2015 (CONT'D) (b) Professional / Consultancy Services International Consultancy 12,435,273.19 Local Consultancy 149,909,689.75 55,243,750.00 162,344,962.94A 55243 c. Repairs & Maintenance Equipment Maintenance 387,427.51 3,462,460.00 Generator,Fuel & Lubricants AGO 4,083,546.27 4,309,200.00 Fuel (Project Vehicle) 1,536,379.53 1,076,647.00 Office Maintenance 16,057,009.00 3,889,662.25 PMU Costs 16,590.00 24,148,916.39 14.321.005.75 d. Technical Support 11,523,368.Q 4,660.000.00 e. Training 16,397,328.78 14,143,437.53 f. Workshops 33,261,082.19 48,879,0266 g. Implentation Related studies 45.583,266.00 Total (2a to 2g) 355,464,286.97 244,664.084 3 Fixed Assets Purchased ICT Equipment 3,020,688.00 41,363,664.00 Motor Vehicle 69,231,402.63 Office Equipment 2,546,647.00 31,415,418.00 Office Furniture 24,687,202.50 5,567.355.00 166,697.687.1a 4. Cash & Bank UBA Special Account 3610029255 (35,290,663.31) 65,343,681.16 UBA Draw down Account 1100015826 6,851,021.43 18,285,688.92 6 UASTAT ErqNr O TIAD EAIRPLYMEN GA)POE DA VEED FORVI T T U [ A In te re s t A /c n o I T10 0 2 9 2 6 3R E C M I R 3 , 'EDIT N 1, 201 5 IDA Credit This represents the N of Amount o'isbursed to fuae Project; by to dan ate to the 6. Other Incone Sale of Tender Document Interest (D ollar) ocur4ents Interest (N Iterbcofstal ch 121,665.24 530,000.00 Write back Of stale cheque 2,094-75 190,718.42 7669506 7