$ES LOCAL GOVERNANCE AND SERVICE DELIVERY PROJ OF FINANCE AND PLANNING & LOCAL GOVERNMENT BOARD PROJECT NUMBER: P127079 SEVEN MONTHS FINANCIAL STATEMENTS FOR THE PERIOD STARTING JULY 1, 2018 TO JANUARY 31, 2019 Prepared in accordance with the Cash Basis of Accounting Method under the International Public Sector Accounting Standards (IPSAS) Prepared by: National Audit Chamber Local Governance and Service Delivery Project Seven Monfits Financial Statements For the Period Starting July 1, 2018 to January 31, 2019 CONTENTS PAGE 1. PROJECT INFORMATION AND OVERALL PERFORMANCE....................................................i 2. STATEMENT OF PROJECT MANAGEMENT RESPONSIBILITIES.......................................SJLvil 3. REPORT OF THE INDEPENDENT AUDITORS ON THE LGSDP PROJECT ...........................viii 4. STATEMENT OF RECEIPTS AND PAYMENTS FOR 7 MONTHS ENDING 31 JAN 2019 ......1 5. STATEMENT OF FINANCIAL ASSETS AND LIABILITIES AS AT 31 JANUARY 2019.......... 2 6. STATEMENT OF CASHFLOW FOR THE PERIOD 31 JANUARY 2019.................................... 3 7. STATEMENT OF COMPARATIVE BUDGET AND ACTUAL AMOUNTS............................... 4 8. SIGNIFICANT ACCOUNTING POLICIES ..............................................LII......ES-........................... 5 9 NOTES TO THE FINANCIALSTATEMENTS ............................................................................. 7 10 PROGRESS ON FOLLOW UP OF AUDITOR RECOMMENDATIONS .................................... 17 A N N EX. IA PEN DIN G BILLSLLS...................................... ................................................................. 1 9 ANN EX IB PEN DING STAFF BILLS ............................................................ .............................. 19 Local Governance and Service Delivery Project Seven Months Financial Statements For the Period Starting July 1, 2018 to January 31, 2019 1. PROJECT INFORMATION AND OVERALL PERFORMANCE 1.1 Name and Registered Office Name: Local Governance and Service Delivery Project. Objective: The key objective of the project is to improve local governance and service delivery in participating counties in South Sudan. Address: The Project Coordination Office is Located at the: Local Government Board compound, West of the Bank of South Sudan, Juba, The project also has offices/branches as follows; at State Ministry of Local Government offices; Rumbek, Yambio, Kapoeta/Torit, Kuajok, Aweil and Wau Contacts: The following are the project contacts E-mail: info u n Website: . r 1.2 Project Information Project Start Date: The project start date is February 28, 2014 Project End Date: The project end date extended from December 31, 2018 to 31 January 2019. Project Manager: The project manager is Mr Moses Mabior Deu Project Sponsor: The project sponsor is International Development Association (IDA) and Trust Funds (TF) 1.3 Project Overview Line Ministry/State The project is under the supervision of the Ministry of Finance and Department of the Planning and the Local Government Board of the Republic of South project Sudan. Project number IDA Credit No. 5213-SD and TF Grant No. 018138 Strategic goals of the The strategic goals of the project are as follows: project (i) Is to incentivize citizen engagement and county capacity development by providing grants through the intergovernmental fiscal transfer system to finance community- driven basic infrastructure and capacity of local government Local Governance and Service Delivery Project Seven Months Financial Statements For the Period Starting July 1, 2018 to January 31, 2019 (ii) Facilitate and strengthen the engagement of communities in the planning, implementation and oversight of local development activities (iii) Increase the capacity of county governments to fulfil the roles and functions required to effectively implement the local development investment cycle Achievement of The project management aims to achieve the goals through the strategic goals following means: (i) Providing a Payam Development Grant (PDG) to the participating Counties. (ii) Facilitate planning process involving BDCs, PDCs and government representatives to identify priority infrastructure investments for financing under the annual grant envelope etc (iii) Engage a firm to and training county officials and employ learning by doing Other important The total approved financing agreements amount to USD background 56,980.505.00, US$ 50,000,000 Fully Financed by International information of the Development Association (Credit no. IDA 5213-Sd) and US$ project 6,980,505.00 Financed by Government of Denmark (TF 018138). Current situation that Forty years of conflict in South Sudan have weakened the historical the project was renmants of the local government system and undermined reliable formed to intervene local delivery mechanism. Nevertheless, the Government of South Sudan has already made significant progress in defining the legal and policy framework for decentralization and establishing basic local government structure and planning systems. But the county Councils, which are defined by the LGA as statutory local government, remain subordinated and highly dependent in their relation to state governments. There is a lack of sufficient financing for local public infrastructure and a lack of conducive incentives for county government to use available resources to improve service. The project intervened the government efforts by putting into practices the established basic local government structure and planning systems, building the capacity of the county officials and disbursement PDG grants to the participating counties. Project duration The project started on 28h February 2014 and is expected to run until 28 February 2019 1.4 Bankers The following are the bankers for the current year: i. Stanbic Bank (K) Ltd West Yat Business Centre, Airport Road Juba, South Sudan ii Local Governance and Service Delivery Project Seven Months Financial Statements For the Period Starting July 1, 2018 to January 31, 2019 1.5 Auditors The project is audited by the National Audit Chamber, Republic of South Sudan 1.6 Roles and Responsibilities Names Title designation Responsibilities Moses Mabior Deu DG Aid coordination, MoFP Chairman of The Project Management Committee Guyson Adikobaa Project Coordinator Coordinate all project activities 1.7 Funding summary The Project is for duration of 5 years from February 2014 to February 2019 with an approved budget of US$ 98.5 Million equivalent to SSP 15,070.5 Million as highlighted in the table below: The approved US$98.5 Million was for initial 40 counties and the actual budget hit US$56.9 and reached 24 counties only. Below is the funding summary: 111 Local Governance and Service Delivery Project Seven Months Financial Statements For the Period Starting July 1, 2018 to January 31, 2019 Source of funds Donor Commitment- Amount received to Undrawn balance to date date (31/01/ 2019) (31/ 01/2019) Donor SSP Donor SSP Donor SSP currenc currency currency --qYqrant' (A) (A') (B) (B' A)-(B) (A')-(B') (ji) Grant' Government of 13,500,000 2,065,500,000 6,980,505 1,068,017,265 6,519,495.00 997,482,735 Denmark (undrawn bal declined) Government of 25,000,000 3,825,000,000 0.00 0.00 25,000,000 3,825,000,000 Netherlands (declined) Government of 10,000,000 1,530,000,000 0.00 0.00 10,000,000 1,530,000,000 Norway (declined) Sub Total - Grant 48,500,000 7,420,500,000 6,980,505 1,068,017,265 41,519,495 6,352,482.735 (ii) Loan International Development 50,000,000 7,650,000,000 44,668,492 6,834,279,323 5,331,508 815,720,676 Association (IDA) Sub Total - Loan 50,000,000 7,650,000,000 44,668,492 6,834,279,323 5,331,508 815,720,676 (iii) Counterpart funds Government of the 0.00 0.00 0.00 0.00 0.00 0.00 Republic of South Sudan Sub Total 0.00 0.00 0.00 0.00 0.00 0.00 Total 98,500,000 15,070,500,000 51,648,997 7,902,296,588 46,851,003 7,168,203,412 From the beginning of the project, the Grant commitment was USD 48,500,000, but later, the Donors declined by turning down the agreement and leaving Grant commitment of USD 6,980,50800 from government of Denmark. iv Local Governance and Service Delivery Project Seven Months Financial Statements For the Period Starting July 1, 2018 to January 31, 2019 1.8 Summary of Overall Project Performance: The Local Governance and Service Delivery Project commonly known as LOGOSEED, completed its fourth year of operation in 2017-18. The Project continued to perform its mandate of implementing small-scale infrastructure projects in the counties while strengthening the Local Government institutions through concerted capacity building efforts. During the reported period of seven months, LOGOSEED scaled down its activities because it was at closing phase. Unfortunately, the conflict that broke out in Juba at the start of the financial, in July 2016, was to significantly affect Project implementation in various ways. The insecurity that followed and inaccessibility of project areas lead to severe delay of sub-project implementation, the temporary suspension of Project activities in all of Western Equatoria and Yei River in Central Equatoria and Ikwoto and Magwi in Eastern Equatoria. The insecurity also led to the withdrawal of SNV, the facilitating partner for CES and EES while activities across the project slowed down drastically due to uncertainty regarding the continuity of the Project. Communal fighting and sporadic insecurity also hampered community engagement activities in Wau, Jur River, Lakes and Eastern Equatoria. Despite these challenges, the Project showed remarkable resilience as evidenced by the achievements highlighted below. Component 1: Effective utilisation of the PDG for 2016-17 projects was made during 2016-18 where 270 contracts were initiated. As summarized on the below table, by January 31, 2019, 256 of these had been completed, 14 were progressing towards completion. Summary of Completion Progress per Sector as at 31 January 2019 Description Total Units Completed Units % Completion Education P/S Classroom Blocks 33 33 100% Health PHCC/PHCU 19 15 78% Markets Public Markets 3 2 67% Livestock Livestock Markets 1 1 100% Water Boreholes 81 81 100% Sanitation VIP Latrines 128 120 93% Storm Water Con truction/Rehabilitati -on of Dykes 1 1 100% Roads Rural Earth Roads 4 3 50% Overall 270 256 95% v Local Governance and Service Delivery Project Seven Months Financial Statements For the Period Starting July 1, 2018 to January 31, 2019 Component 2: Community Engagement In the reporting period, Community Engagement activities were significantly impacted by a lack of funding combined with a lack of clarity regarding the timeframe for additional financing. Facilitating Partners (FPs) continued their ongoing work with managing sub-projects, and play a role in dealing with community conflict for two months only, July and August. Their contracts ended in August 2018. The table below summaries the participants engaged during the participating planning process by financial year from the beginning of the project. Table 1: Participants engaged during the participatory planning process by financial year FY # Male # Female # Participants 2013/14 5,522 5,747 11,269 2014/15 8,190 6,620 14,810 2015/16 38,612 45,433 84,045 2016/17 11,81.2 13,512 25,324 2017/18 2,003 1,407 3,410 July 1, 2018 to January 31, 2019 None None None As summarised by the above table, there was nothing that took place in terms of planning process between July 1 2018 and December 31, 2018. Component 3: The contract of the TA firm, Cowater International Inc., the implementing partner of Component three came to an end in April 28, 2018. That means from that date the component was not active. During the reporting period, apart from preparations of reports, there was no capacity building activities nor safe guard and environmental activities took place. vi Local Governance and Service Delivery Project Seven Months Financial Statements For the Period Starting July 1, 2018 to January 31, 2019 2. STATEMENT OF PROJECT MANAGEMENT RESPONSIBILITIES The Undersecretary for the Ministry of Finance and planning and the Project Coordinator for LGSDP project are responsible for the preparation and presentation of the Project's financial statements, which give a true and fair view of the state of affairs of the Project for and as at the end of the reporting period ended on January 31, 2019. This responsibility includes: (i) maintaining adequate financial management arrangement and ensuring that these continue to be effective throughout the reporting period; (ii) maintaining proper accounting records, which disclose with reasonable accuracy at any time the financial position of the Project; (iii) designing, implementing and maintaining internal controls relevant to the preparation and fair presentation of the financial statement, and ensuring that they are free from material misstatements, whether due to error or fraud; (iv) safeguarding the assets of the Project; (v) selecting and applying appropriate accounting policies; and (vi) making accounting estimates that are reasonable in the circumstances. The Undersecretary for the Ministry of Finance and planning and the Project Coordinator for LGSDP project accept responsibility for the Project's financial statements, which have been prepared on the Cash Basis Method of Financial Reporting, using appropriate accounting policies in accordance with International Public Sector Accounting Standards. The Undersecretary for the Ministry of Finance and planning and the Project Coordinator for LGSDP project are of the opinion that the Project's financial statements give a true and fair view of the state of Project's transactions during the reporting period ended on January 31, 2019 and of the Project's financial position as at that date. The Undersecretary for the Ministry of Finance and planning and the Project Coordinator for LGSDP project further confirm the completeness of the accounting records maintained for the Project, which have been relied upon in the preparation of the Project financial statements as well as the adequacy of the systems of internal financial control. The Undersecretary for the Ministry of Finance and planning and the Project Coordinator for LGSDP project confirm that the Project has complied fully with applicable Government Regulations and the terms of external financing covenants, and that Project funds received during the financial year/period under audit were used for the eligible purposes for which they were intended and were properly accounted for. Approval of the Project financial statements The Project financial statements were approved by the Undersecretary for the Ministry of Finance and planning and the Project Coordinator for LGSDP project on 2019 and signed by them. Undersecretary of Planning Projet Coordinator vii Local Governance and Service Delivery Project Seven Months Financial Statements For the Period Starting July 1, 2018 to January 31, 2019 3. REPORT OF THE INDEPENDENT AUDITORS ON THE LGSDP PROJECT REPORT ON FINANCIAL STATEMENTS We have audited the accompanying financial statements of LGSDP Project, set out on pages 1 to 19 which comprise the statement of receipts and payments for the reporting period ended on January 31, 2019, and a summary of significant accounting policies and other explanatory notes. Responsibility for the Financial Statements The Undersecretary for the Ministry of Finance and planning and the Project Coordinator for LGSDP project are responsible for the preparation and fair presentation of these financial statements in accordance with International Public Sector Accounting Standards (IPSAS). This responsibility includes designing, implementing and maintaining internal controls relevant to the preparation and fair presentation of financial statements that are fi-ee 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. Auditor's Responsibility 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 the audit to obtain 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 in the financial statements. The procedures selected depended on our professional 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, we considered the internal controls relevant to the company's preparation and fair presentation of the financial statements in order to design, audit procedures that were appropriate in the circumstances, but not for the purpose of expressing an opinion on the company's internal controls. An audit also includes evaluating the appropriateness of accounting polices used and the reasonableness of accounting estimates made by the 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 accompanying financial statements give a true and fair view of the state of financial affairs of the Local Governance and Service Delivery Project (LGSDP) for the financial yeat/period ended January 31, 2019 in accordance with International Public Sector Accounting Standards (IPSAS). viii Local Governance and Service Delivery Project Seven Months Financial Statements For the Period Starting July 1, 2018 to January 31, 2019 Emphasis of matter Without qualifying our opinion, we highlight that during the period under review, the Project transferred US$ 1,884,559 to counties for implementation of activities. Although these transfers have correctly been reported in these financial statements, an audit of how these amounts were expended need to be undertaken at the respective counties, and separate audit reports issued. REPORT ON PROJECT PERFORMANCE AND VALUE FOR MONEY ACHIEVEMENT Based on our audit, we report that nothing came to our attention to indicate substantial non- achievement of value for money objectives. However, we identified a few minor cases of non- achievement of value for money objectives, which have been included in our separate Management Letter to the Undersecretary for the Ministry of Finance and planning and the Project Coordinator for LGSDP project. REPORT ON COMPLIANCE WITH APPLICABLE LAWS AND REGULATIONS Based on our audit, we report that nothing came to our attention to indicate substantial non- compliance with applicable laws and regulations, as well as essential external financing covenants. However, we identified a few minor cases of non-compliance, which have been included in our separate Management Letter to the Undersecretary for the Ministry of Finance and planning and the Project Coordinator for LGSDP project. REPORT ON CONTRACTS WITH DEBARRED FIRMS Based on our audit, we report that nothing came to our attention to indicate that debarred firms, both by the government and external financiers, were awarded any contracts under the Project during the financial year/period under review. Auditor General; REPUBLIC OF SOUTH SUDAN Date ix Local Governance and Service Delivery Project Seven Months Financial Statements For the Period Starting July 1, 2018 to January 31, 2019 4. STATEMENT OF RECEIPTS AND PAYMENTS FOR 7 MONTHS ENDING 31 JANUARY 2019 Note Cumulative Jul 18-Jan 19 2017/18 to-date USS US$ US$ RECEIPTS Transfer from Government entities 9.1 0 0 0 Proceeds from domestic and foreign grants 9.2 0 0 6,980,505 Loan from external development partners 9.3 3,342,461 8,143,983 44,559,654 Miscellaneous receipts 9.4 0 0 475 Total receipts 3,342,461 8,143,983 51,648,997 PAYMENTS Category 1: Grants under part 1: PDG Sub-Project..........................9.5 0 0 769,214 Category 2: GDS, WKS, CS, NCS, OP, TRG Part 2, 3, 4............................9.6 0 0 3,253,511 Category 3: PPA Pre-financing Part 2, 3, 4............................9.7 0 0 1,374,807 Category 4: Grants under part 1: PDG Sub-Project............................9.8 1,884,559 1,834,815 8,025,803 Category 5: GDS, WKS, CS, NCS, OP, TRG Part 2, 3, 4 ........................... 9.9 3,364,510 8,516,499 38,169,995 TOTAL PAYMENTS 5,249,069 10,705,878 51,593,330 SURPLUS/DEFICIT FOR THE YEAR _(1.906608) (2.20733311 55;667 The accounting polici and explanato; es to these financia ir- n integra p1 of the financialsatnrs Local Governance and Service Delivery Project Seven Months Financial Statentts For the Period Starting July 1, 2018 to January 31, 2019 5. STATEMENT OF FINANCIAL ASSETS AND LIABILITIES AS AT 31 JANUARY 2019 Note Jul-Jan 2019 2017/18 US$ US$ FINANCIAL ASSETS Cash and Cash Equivalents Bank Balances 9.10A 31,976 1,929,626 Cash Balances 9.10B 5,288 7,446 Cash Equivalents 9.10C 0 0 Imprests and Advances 9.1OD 18,403 25,203 TOTAL FINANCIAL ASSETS 55,667 1,962,275 REPRESENTE BY: Cash and cash equivalents b/fwd 9.11 1,962,275 4,169,606 Surplus/Deficit for the year (1,906,608) (2,207,331) Prior year adjustments 9.12 0 0 NET FINANCIAL POSITION 552667 1,962.275 The accounting policies and explanatory notes to these financial statements form an integral part of the financial statements. The financial statements were approved on 2019 and signed by: Undersecretary of Planning Proje Coordinator Date Date 2 Local Governance and Service Delivery Project Seven Months Financial Statements For the Period Starting July 1, 2018 to January 31, 2019 6. STATEMENT OF CASH FLOW FOR THE PERIOD 31 JANUARY 2019 Jul-Jan 2019 2017/18 USD USD Receipts for operating income Transfer from Government entities 0 0 Proceeds from domestic and foreign grants 0 0 Miscellaneous receipts 0 0 Payments for operating expenses Compensation of employees 0 0 Purchase of goods and services 5,249,069 10,351,314 Net cash flow from operating activities (5,249,069) (10,351,314) CASHFLOW FkOM INVESTING ACTIVITIES Acquisition of Assets 0 0 Net cash flows from Investing Activities 0 0 CASHFLOW FiZoM ,GRR.W2NG ACTIVITIES Proceeds from ForeIgn Borrowins 3,342,461 8,143,983 Net cash flow fr m inancing activities 3,342,461 8,143,983 NET INCREASE iN CAS1 AND CASH (1,906,608) (2,207,331) EQUIVALENT Cash and cash equivalen: at G INNiNG of the year 1,962,275 4,169,606 Cash and cash equivalent at IND of the year 55,667 L962.275 The accounting policies and explanatory notes to these financial statements form an integral part of the financial statements. The emity financial statements were approved on 2019 and signed by: Undersecretary of Planning Project Co inator Date Date 3 Local Governance and Service Delivery Project Seven Months Financial Statements For the Period Starting July 1, 2018 to January 31, 2019 7. STATEMENT OF COMPARATIVE BUDGET AND ACTUAL AMOUNTS Actual on % of Origina Adjust Final Comparable Varian Receipts/Payments Item Bud2etl ments Budget Basis Variance ce a b c=a-b cl e=d-c fe/ e% Receipts Proceeds from borrowings 3.342.460.93 0 3,342,460.93 3,342,460.93 0 0% Miscellaneous receipts 0 0 0 0 0 Total Receipts 3.341460.93 0 3,342,460W93 3,342,460.93 0 0% Payments as per categories Category 1 0 0 0 0 0 Category 2 0 0 0 0 0 Category 3 o 0 0 0 0 Category 4 - PDG to Counties 1,84,55854 0 1,884,558.54 1,884,558.54 0 0% Category 5 - Comp 2.3 & 4 2,07, 55.19 0 2.072,557.19 3,364,510.39 (1,291,953.2) -62% Total Payments 3,95! 175.3 0 3,957,115.73 5,249,068.93 1,291,953.20 -33% Note: The Financial Performance of category 5 was over and above the budget. The over expenditure was due to the payments in favour of the four Facilitating Partners (F/Ps) and the last invoice for the Technical Advice (TA). The claims from F/Ps was for the work done from January 2018, likewise the TA's invoice was for the work of April 2018 and was paid in this reported period (Jul -Dec 2018). Undersecretary of Planning Proj ct Coordinator Date Date 4 Local Governance and Service Delivery Project Seven Months Financial Statements For the Period Starting July 1, 2018 to January 3I, 2019 8. SIGNIFICANT ACCOUNTING POLICIES The principal accounting policies adopted in the preparation of these financial statements are set out below: Statement of compliance and basis of preparation The financial statements have been prepared in accordance with and comply with International Public Sector Accounting Standards (IPSAS) with particular emphasis on Cash Basis Financial Reporting under the Cash Basis of Accounting. The financial statements are presented in United States Dollars, which is the functional and reporting currency of the Project and all values are rounded to the nearest one Dollar. The accounting policies adopted have been consistently applied to all of the years presented. The financial statements have been prepared on the cash basis following the Government's standard chart of accounts. The cash basis of accounting recognises transactions and events only when cash is received or paid out by the Project. i. Recognition of revenue and expenses The Project recognises all revenues from the various sources when the event occurs and the related cash has actually been received by the Project. In addition, the Project recognises all expenses when the event occurs and the related cash has actually been paid out by the Project. ii. In-kind donations In-kind donations are contributions made to the Project in the form of actual goods and/or services rather than in money or cash terms. These donations may include vehicles, equipment or personnel services. Where the financial value of in-kind donations can be reliably determined, the Project includes such value in the statement of receipts and payments both as revenue and as an expense in equal and opposite amounts; otherwise, the donation is not recorded. iii. Cash and cash equivalents Cash and cash equivalents comprise cash on hand and cash at bank, short-term deposits on call and highly liquid investments with an original maturity of three months or less, which are readily convertible to known amounts of cash and are subject to insignificant risk of changes in value. Bank account balances include amounts held at the Central Bank of South Sudan and/or at various commercial banks at the end of the financial year/period. For the purposes of these financial statements, cash and cash equivalents also include short term cash imprests and advances to authorised public officers and/or institutions which had not been surrendered or accounted for at the end of the financial year/period. 5 Local Governance and Service Delivery Project Seven Months Financial Statements For the Period Starting July 1, 2018 to January 31, 2019 SIGNIFICANT ACCOUNTING POLICIES (Continued) iv. Pending bills Pending bills consist of unpaid liabilities at the end of the financial year/period arising from contracted goods or services during the year/period or in past years/periods. As pending bills do not involve the payment of cash in the reporting period, they are simply disclosed as an Annex to the financial statements, When the pending bills are finally settled, such payments are included in the statement of receipts and payments in the year in which the payments are made. v. Budget The budget is developed on the same accounting basis (cash basis), the same accounts classification basis, and for the same period as the financial statements. The Project's budget was approved as required by Law and regulations issued by the Ministry of Finance and Economic Planning, as well as by the participating development partners, as detailed in the Government of South Sudan Budget Printed Estimates for the year. A high-level assessment of the Project's actual performance against the comparable budget for the financial year/period under review has been included in an annex to these financial statements. vi. Exchange rate differences The accounting records are maimained in United States Dollars, which is the main currency used for major payments under the Project. A smaller percentage of payments are however made in the South Sudanese Pound (SSP). Those transactions are converted into the United States Dollars using the exchange rates prevailing at the dates of the transactions. Any foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in the local currency are recognised in the statements of receipts and payments. vii. Comparative figures Where necessary comparative figures for the previous financial year/period have been amended or reconfigured to conform to the required changes in financial statement presentation. viii. Subsequent events There have been no evems subsequent to the financial year/period end with a significant impact on the financial statements for the period ended 31 January 2019. 6 Local Governance and Service Delivery Project Seven Months Financial Statenzents For the Period Starting July 1, 2018 to January 31, 2019 9 NOTES TO THE FINANCIAL STATEMENTS 9.1 RECEIPTS FROM GOVERNMENT OF THE REPUBLIC OF SOUTH SUDAN There were no counterpart funds from the Government of the Republic of South Sudan during the fiscal year. 9.2 PROCEEDS FROM DOMESTIC AND FOREIGN GRANTS The grant was received from the Government of Denmark in FY 2014/15 and FY 2015/16. From Financial year 2016/17 to date there was never receipt nor direct payments from Grant. 9.3 LOAN FROM EXTERNAL DEVELOPMENT PARTNERS During the 7 months. July 1, 2018 - 31 January 2019, the project received funding from developmer partners in form of loans negotiated by the National Treasury from donors as detailed in the table below Amount Loans Loans Total amount in US$ Name of Donor Date in loan received received received currene in cash as direct V jpayment* us$5 USS Loans Received from i Multilateral Donors .. (nternational Organizations) L______ July 24N.2017 812.196 812.196 D OC 8. 2017 106.368 106,368 Dec 21.2017 224.857 224.857 J 3, 0 18 216.213 216.213 Mar7. 2018 212-713 212,713 \p o 2018 257.739 257.739 M- i 2018 101,463 101.463 International Development 41804 I 241,804 31 Jul' '(117 5,970.630 '5S970,630 Association (IDA) 5,970.630 1970,630 '201 _155,344 155.344 A 0, 20 18 267 761 267,762 Oc 5, 208 161259 161,259 Oci 3i. 20 19 306,332 306,332 D T 10 2018 318.239 318.239 July L 2018 2.133-525 2,133.525 De31 20, 8 Total [3,342,461 8,143,983 7 Local Governance and Service Delivey Project Seven Months Financial Statements For the Period Starting July 1, 2018 to Jan uary 31, 2019 NOTES TO THE FINANCIAL STATEMENTS (Continued) 9.4 MISCELLANEOUS RECEIPTS There were no miscellaneous receipts during the year. 9.5 CATEGORY 1. PDG io Counties (From May 2013 to December 2014) Exchange s/n DCounty Name rate I 03-JU11-14 Ibba County -185,634 3.00 61,878. 2 03-Jun-14 Ezo County 444,579 3.00 148,193 3 03-Jun-14 Rumber East County 579,915 3.00 193,305 4 03-Jun-14 Yirol County 487,350 3.00 172,450 5 _ _ Bank Charnes: DA-I SSP stanbic 30 6 18-Dec-14 ibba County 185,634 3.10 59,882 t7 18-Dec-14 E zo County 444,579 3.10 143,413 8 31-Dec-14 Bank Charges, DA-I SSP stanbic 64 Grant Total Category 1 2,327,691 769,215 9.6 CATEGORY 3: PPA Pre-3inancing Jul -Dec 18 2017/18 Cumulative Uss USs US$ Goods 0.00 0.00 789,992.05 Works 0.00 0.00 59,249.40 Consultancy 0.00 0.00 1,675,259.46 Training 0.00 0.00 199,289.70 Fuel, advert, staff travels, M&E and others 0.00 0.00 529,720.61 0.00 0.00 3,253,511.22 9.7 CATEGORY 2: GDS, WKS, CS, NCS, OP, TRG Jul -Dec 18 2017/18 Cumulative U1SS USS us$ Goods 0.00 0.00 250,478.76 Works 0.00 0.00 37,725.06 Consultancy 0.00 0.00 875,358.70 Training 0.00 0.00 121,034.00 Fuel, advert, staff travels. M&E and others 0.00 0.00 90,210.34 0.00 0.00 1,374,806.86 8 Local Governance and Service Delivery Project Seven MontIs Financial Statenejnts For the Period Starting July 1, 2018 to January 31, 2019 NOTES TO THE FINANCIAL STATEMENTS (Continued) 9.8 CATEGORY 4: PDG to Counties (From January 2015 to June 30,2018) sin Date ssP Exchange USS Count Namerate 1 28-Feb-15 Yirol West County 487,350.00 3.10 157,209.68 2 28-Feb15 Rumbek East Countv 579.915.00 3.10 187,069.35 Bank Charges; DA-] SSP S28-Feb-15 stanbc - c 51.61 344,330.64 Transfér FY 2015/16 3 01-Jun-16 Rumbek East Couy j 15,459,118.56 36.00 429,419.96 4 0 1-Jun-16 Yirol West Countv 13.007,207.7 0 36.00 361,311,33 5 0I-JunI-16 Wulu Coumy 5,187,856.50 36,00 144,107.13 6 01Jun-16 lba County 5,352,507.27 36.00 148,680.76 7 01-Jun-16 Mvovlo county 6,134,567.22 36.00 180,404.65 8 jI-Jun-16 KapetaEascounty 20,597,745.51 36.00 572,159.60 9 01-Jun-16 Ikwotos cCuntV 10,692,734.67 36.00 297,020.41 1 01-iun-16 Gogral Westcounty 30574,658.43 36.00 849,296.07 11 Ol-Jun- 6 Twic couv 25,704,291.67 36.00 714,008.10 Bank C e50.25 Total FY 201i/16 3,686,458.24 Tansfers FY 201617 7 ? 12 24-Feb-17 Gogriaj Wesounty 3,33 1,081.00 117.80 28,519.53 13 24-Feb-17 Twic coinny 12,181,693.00 117.80 104,295.32 14 03-Apr-1 7 Mvo ocounty 994,751.74 120.00 8,289.60 15 03-Apr-l7 ogrial Wes coumy 2,581,64649 120.00 21,5-13.72 1 7 103-Apr-17 Yrol Wes:county 420,000.00 120,00 3,500,00 18 03-Apr-17 Rumbek East county 420,000.00 120.00 | 3,500.00 18 [03 Apr17 lwic couny 2 ,37,533.00 120.00 18,646.11 19 03-Ap -17 Kapoeta East cunty 2425,072.00 120.00 20,208.93 20 03-Apr 17 Ikwto cotnv 107,510.67 120.00 18,562.59 21 03-Apr-17 Wulucouint 420,000.00 120.00 3,500.00 22 24-May-17 Y.irol West Counry 5,670,810.60 137.00 41,392.78 23 4-May-17 Tkwotos county 605,711.40 137.00 4.421.25 3 f-May-l7 Bank ChargesFY2016/17 44378 Total FY 2016/17 275,793.60 9 Local Governance and Service Deliveky Project Seven Months Financial Statemensu For the Period Starting July 1, 2018 to Januaiy 31, 2019 Transfers FY 2017/18 S/N Date County Name Amount (in SSP) Ex. rate Eq. in USS l 01-Jul-1 7 lkwo countsy 5.670,616.00 138.00 41,091.42 2 01-Jul-17 Runbek Easi couty_ 6,274,862.00 138.00 45,470.01 3 O1-Jul-17 Yiro West countv 2,175,534.00 138.00 15,764.74 4 J01-Ju-17 Wuili county 2,617,342.00 138.00 18,966.25 5 01-Jul-17 Twic cownty 13,750,717.00 138.00 99,642.88 6 12-Oct-17 Kapoota East county 1 4,551,677.00 122.08 119,200.91 7 12-Oct-17 Mvolk county 1217,062.00 122.08 9,969.63 8 12-Oct-17 GogrialWest county 25,123,729.00 122.08 205,802.48 9 12-Oct-17 Rumbek ast comny 2,690,598.00 122.08 22,040.19 10 12-Oct- 7 kwotocouy 5,052,750.00 122.08 41,389.89 1 12-Oct-17 Twic county 7,101,694.00 122.08 58,173.94 12-f 12-Oct- 17 Yirol West couny 7,115,203.00 122.08 58,284.60 13 13-Dec- 17 Wu!u cocv _____1,548,795.00 125.15 12,375.74 14 13-Dec-17 YLWest countv 4,048,675.00 126.48 32,010,40 15 213.Dec--7 ikwtovcounty 2.933,218.00 126.48 23,191.16 16 16-Feb-18 Twiccouny 3,812,857.00 131.31 29,037.50 17 16.Feb- 8 Rwumbek East coLiity 3.142.740.00 131,96 23,815.85 18 16-Feb-18 iJur Ri er Comty 11,562,947.00 131.96 87,624.64 19 16-Feb-18 Juba County 481,425.00 ¶31.96 3.648.26 20 16-Fb- 18 wi! E as Couity 481,425.00 131.96 3,648.26 21 16-Feb- 18 AwecCr. h Coimt, 481.425.00 131.96 3,648.26 22 03-Mai-18 Juaoun 9.412.915.00 132.48 71,051.59 23 03-Mar- 18 Twic couny 60,3 13,00 132.50 4,545.76 24 0 -Mar 8 Kapoeta Eascoy 3,275,910.00 132.50 24,723.85 25 03-Mar-18 Virol West county 1,019,797.00 132.50 7,696.58 26 27-Mar18 Jaaj af,ont 16,356,423.00 133.95 122,111.25 27 27-Mar18 Ikwoto coniv 1,944,858.00 1331.99 14,514.95 28 27-Mar-18 Awei North COuny 5.545,261.00 133.99 41,385.63 29 28-Ma- i8 Moia eoutv 1,108,230.00 133.99 8,270.99 30 29-Mar 8 Wulu coumy 4,064,304.00 133.99 30;332.89 31 30 -Mar-!8 Jai½e county 8,557,602.00 133.99 63,867.47 32 20-Apr-18 Y0 A't comtul t 1391.160.00 133.99 2,919.32 33 20-Apr-l8 A ier 1 eounty 6,538.190.00 135.27 48,335.89 34 20-A-pr- i8 Ase v' e Coatnsi __c__y 25,45.30 1.00 135.32 187,886.72 35 24-May-i8 Yicf West Cmy ,,722,760.00 136.77 12.595.87 36 24-May- I u R18 cevny_ 10,476,816.00 137.05 76,442.48 37 24-May18 Aäe4 o oumy 2,854,691.00 137.05 20,828.81 38 24-May-18 AweåEas Cowny _8,171,066,00 137.05 132,582.39 39 24-May-18 Tvie count< 2,429,594.00 137.05 17,727.16 Toc TIrLsers 1,842;616.62 Bank CIargesF 201 08.77 AdLstment asÄperno men on -7,910.51 Total FY20171"!8 9 1,834,814.88 Main Total- Cumulative a r 4 faug r 6,141,397.37 10 Local Governance and Service Delivery Project Seven Months Financial Statements For the Period Starting July 1, 2018 to January 31, 2019 NOTES TO THE FINANCIAL STATEMENTS (Continued) Transfer: July 1, 2018_- January 31, 2019 S/N Date County Name Amount (in SSP) Ex. rate Eq. in US$ 1 05-Jul-18 Jur River County 7,946,897 140 56,942.51 2 05-Jul-18 [kwoto county 208,693 140 1,494.49 3 05-Jul-18 Gogrial West county 4,680,034 140 33,514.71 4 05-Jul-18 Juba county 36,622,819 140 262,263.71 5 05-Jul-18 Twic county 1,420,122 140 10,169.79 6 24-Jul-18 Aweil East county 9,112,692 141 64,421.36 7 24-Jul-18 Gogrial West county 980,917 141 6,934.50 8 24-Jul-18 Aweil North county 2,356,565 141 16,659.52 9 24-Jul-18 Jur River county 2,432,779 141 17,198.31 10 31-Jul-18 Bank Charges 2,300 141 16.26 11 28-Aug-18 Jur River county 2,169,002 148 14,693.58 12 28-Aug-18 Aweil North county 3,141,035 148 21,273.85 13 28-Aug-18 Kapoeta East county 4,180,000 148 28,310.63 14 28-Aug-18 Mvolo county 3,838,302 1-48 25,996.35 15 31-Aug-18 Bank Charges 1,389 148 9.41 16 28-Sep-18 AweilNorthcounty 12,581,979 150 84,155.38 17 28-Sep-18 Juba county 12,496,362 150 83,572.56 18 28-Sep-18 Aweil East county 6,123,667 150 40,953.56 19 30-Sep-18 Bank Charges 1,100 150 7.36 20 26-Oct-1S Gollian General Trading Co. Ltd- 88,203 150 589.87 Jur River County 21 26-Oct-18 Justinco for contractor Trade & 4,036,410 151 26,804.13 Transportation - Jur River County 22 26-Oct-18 Lam Construction Co. Ltd -Jur 2,692,386 151 17,876.54 River County 23 26-Oct-18 AGM Suppliers Construction Co 2,811,021 151 18,664.24 Ltd - Jur River County 24 26-Oct-18 Sunshine TE Co Ltd -Jur River 9,053,482 151 60,112.09 County 25 26-Oct-18 Pataka for trading & 5,938,387 151 39,428.90 Construction Co. Ltd - Jur River County 26 26-Oct-18 Waar Lang Company Ltd -Aweil 19,089,220 151 126,746.03 East County_ 27 26-Oct-18 Matiat for Trading CO Ltd -Aweil 4,407,983 151 29,267.53 East County 28 26-Oct-18 Omaski Sai INFA Co Ltd - 562,355 151 3,733.85 Wulu County 29 26-Oct-18 Konybai Civil Engeering and 1,429,560 151 9,491,80 Investment Co Ltd - Gogrial West County 30 26-Oct-18 CY Enterprises Ltd - Juba 4,715,969 151 31.31246 County 31 26-Oct-18 BCB for General Trading & 2;926,809 151 19,433.03 Investment Co Ltd - Jur River | :11 Local Governance and Service Delivery Project Seven Months Financial Statements For the Period Starting Jily 1, 2018 to January 31, 2019 S/N Date County Nane Amount (in SSP) Ex. rate Eq. in US$ County 32 26-Oct-18 Unity Construction & Transport 296,697 151 1,969.97 Co Ltd - Mvolo County 33 31-Oct-18 Bank Charges 3,100 151 20.58 34 01-Nov-18 Youth Drilling Company Ltd - 1,069,955 151 7,104.14 Rumber East County 35 30-Nov-1 8 Bank Charges 700 151 4.65 36 04-Dec-18 AGM Suppliers Construction Co 4,645,840 152 30,586.33 Ltd -Jur River County 37 04-Dec-18 Justinco for contractor Trade & 393,412 152 2,587.56 Transportation-Jur River County 38 04-Dec-18 Lam Construction Co. Ltd-Jur 2,356,791 152 15,501.12 River County 39 04-Dec-18 Pataka For trading & 553,954 152 3,643.48 Construction Co. Ltd- Jur River County 40 04-Dec-18 Matiat for Trading CO Ltd- Aweil 4,407,982 152 28,992.25 East County 41 04-Dec-18 Matino for Engineering 581,829 152 3,826.82 Contracting and Investment - Jur River County 42 04-Dec-18 Youth Drilling Company Ltd - 1,807.300 152 11,887.00 Rumber East 43 04-Dec-18 Gardit &Sons Co. Ltd - Rumber 1,203,150 152 7,913,38 East County 44 04-Dec-18 AES Engineering Co. Ltd - Juba 7,680,871 152 50,518.75 County 45 04-Dec-18 Akson Company Ltd- Juba 7,053,124 152 46,389.92 County 46 04-Dec-18 GESCO Company Ltd- Juba 7,536,751 152 49,570.84 1 County 47 31-Dec-18 Bank charges - Dec 2018 2,700 152 17.76 48 17-Jan-19 Rambo Express Co Ltd - Juba 1,340,085 153 8,730.97 County 49 17-Jan-19 Dolphin International Ltd - Juba 2,100,092 155 13,563.86 County 50 17-Jan-19 Wayi Blue Construction & 1,631,620 155 10,538.14 Investment Co. Ltd - Juba County 51 17-Jan-19 AksonCo Ltd- Juba County 14,000,201 155 90,423.05 52 17-Jan-19 Matiat for trading Co Ltd - Aweil 1,001,814 155 6,470.41 East 53 17-Jan-19 Ganal Construction and Roads - 6,930,111 155 44,759.48 Aweil East 54 18-Jan-19 Bright Horison Trading Co Ltd - 577,265 155 3,728.38 Mvolo County 55 18-Jan-19 AGM Suppliers & Construction 10,078,056 155 65,103.72 Co Ltd - Jur River County 56 18-Jan-19 BCB for General Trading & 6,246,944 155 40,354.94 Investment Co Ltd - Jur River 57 18-Jan-19 Sunshine TE Co Ltd -Jur River 609,251 155 3,935.73 12 Local Governance and Service Delivery Project Seven Months Financial Statements For the Period Starting July 1, 2018 to January 31, 2019 S/N Date County Name Amount (in SSP) Ex. rate Eq. in US$ 58 18-Jan-19 Universal Investment Co Ltd - 412,638 155 2,665.62 lkwoto County 59 18-Jan-19 Atepi Investment Co Ltd - 94,940 155 613.31 lkwoto County .60 18-Jan-19 Wema Construction Co Ltd - 682,985 155 4,412.05 Yirol West County 61 18-Jan-19 Joborong & Sons Hardware Co 485,621 155 3,137.09 Ltd - Virol West County 62 18-Jan-19 Unity Construction & Transport 3.678,984 155 23,766.05 1 Co Ltd - Mvolo County 63 18-Jan-19 Woyi Blue Contruction & 429,285 155 2,773.16 Investment Co. Ltd - Juba County 64 18-Jan-19 Firm Consult and Engineering 191,059 155 1,234.23 Ltd - Wulu County 65 1 8-Jan-19 Continental Construction Co 1td - 2,273,257 155 14,685.12 Kapoeta County 66 23-Jan-19 GS Construction Co Ltd - Aweil 2,962,347 155 19,127.96 East 67 23-Jan-I19 Mayek Consult and Engineering 783,502 155 5,058.11 Co Ltd - Rumbek East 68 23-Jan-19 Eyat Roads and Bridges Co Ltd - 2,800,000 155 18,076.18 Virol West 69 23-Jan-19 Bright Horison Trading Co Ltd - 1,834,970 155 11,846-16 Mvolo County 70 23-Jan-19 Woyi Blue Contruction & 429,285 155 2,771.37 Investment Co. Ltd - Juba County 71 30-Jan-19 Refunded expenditure - Juba 115,800 155 747.58 Cou nty 72 30-Jan-19 Mayek Consult and Engineering 655,399 155 4,231.11 Co Ltd - Rumbek East County 73 30-Jan-19 Legacy International Co Ltd - 608,219 155 3,926.53 Wulu County 74 30-Jan-19 Craft Construction Co Ltd - 2,660,409 155 17,178.34 Juba County 75 30-Jan-19 Dolphin International Ltd - Juba 7,445,782 155 48,077.63 County 76 31-Jan-19 Bank charges: Jan 2018 6,100 155 39.39 July 1, 2018- January 31, 2019 280,708,616 1,884,558.54 Main Total- Cumulative Category 4 8,025,955.90 Starting from October 2018, PMU was paying directly to the Contractors instead of transferring money to the PDG County Accounts. 13 Local Governance and Service Delivery Project Seven Months Financial Statements For the Period Starting July 1, 2018 to January 31, 2019 Summary of PDG transfer to Counties During the period of 7 months to January 31, 2019 and cumulative to date the project transferred funds to reporting counties as shown below: s/n County 2017/18 July 1, 2018 to January Total 31, 2019 1 Ibba - 270,440.70 2 Ezo 1-291,605.58 3 Rumber East 91,326,06 36,193.74 940,814.11 4 Yirol west 129,271.51 25,625.32 880,760.62 5 WuI 61,674.88 11,667.77 220,949.78 6 Mvolo 18,240.62 55,460.75 252,395.63 7 Kapoeta East 143,924.75 42,995.75 779,289.04 8 Ikwoto 120,187.42 16,619.58 455,811.26 9 Gogrial West 205,802.48 49,941.01 1,155,072.81 10 Twic 209,127.23 10,169.79 1,056,246.55 11 Jur River County r 227,934.58 437,282.91 665,217.49 12 Juba County i196,811.11 715,659.18 912,470.29 13 Aweil East County 324,117.38 360,738,58 684,855.96 14 Aweil North County 114,198.60 122,088.75 236,287.36 15 Bank charges 108.77 115.40 863.99 Total 1,842,725.39 1,884,558.53 8,803,081.17 14 Local Governance and Service Delivery Project Seven Months Financial Statements For the Period Starting July 1, 2018 to January 31, 2019 NOTES TO THE FINANCIAL STATEMENTS (Continued) 9.9 CATEGORY 5: GDS, WKS, CS, NCS, OP, TRG Categories Jul 18-Jan19 2017/18 Cumulative US$ Uss US$ Goods 136,927.25 173,342.15 1,118,168.28 Works 0.00 34,032.76 208,802.13 Consultancy 2,962.269.36 7,510,415.45 36,080,574.61 Training 14,557.47 227,326.82 871,368.09 Fuel, advert, and staff travels, 250,756.31 571,382.34 3,087,901.09 M&E and others Total 3,364,510.39 8,516,499.52 41,366,814.20 9.10 CASH AND CASH EQUIVALENTS C/FWD Jul 18-Jan19 2017/18 US$ USs$ 9.10A Bank Accounts Foreign Currency Accounts Stanbic Bank [A/c No 0200000062536] 20.00 1,888,930.32 Stanbic Bank [A/c No 0200000062552] 21,239.28 36,912.52 Total Foreign Currency balances 21,259.28 1,925,842.84 Local Currency Accounts Stanbic Bank [A/c No 0200000062544] 6,037.85 1,846.20 Stanbic Bank [A/c No 0200000046263] 4,679.16 1,937.25 Total local currency balances 10,717.01 3,783.45 Total bank account balances 31,976.29 1,929,626.29 Jul 18-Jan 19 2017/18 US$ US$ 9.10B Cash in hand USD Petty Cash at PMU 3,000.00 5,000.00 SSP Petty Cash at PMU 2,287.83 2,446.00 5,287.83 7,446.00 15 Local Governance and Service Delivery Project Seven Montlis Financial Statements For the Period Starting July 1, 2018 to January 3.1, 2019 NOTES TO THE FINANCIAL STATEMENTS (Continued) Jul 18-Jan19 2017/18 US$ us$ 9.10C Cash equivalents (short-term deposits) None 0.00 0.00 9.10D Imprests Balances 9.1 0D. I Imprest/fbr operations to the Project State Offices None 9.1 OD. 2 Advance to project staffor field missions S/N Name and Description Dates Amount Remarks 1 UMCOR 0 1/11/2018 5,000.00 For Air tickets - WFP 2 Emmanuel Candiga 13/12/2018 384.00 Advance to Yambio 3 Guyson Adikoba 13/12/2018 6,396.00 Filed mission with PMC members N 01/11/2018 Advance for Air tickets - PMC S Nargis Mbimbi 2,19000 mme 4 member Accounted more than the advanced 5 Shingrayi Mushamba - -128,00 amount 6 Taban 1-5 Accounted more than the advanced 6 Taban - 150.20 amount 7 Guyson Adikobaa 18/12/2018 SSP 80,000 519.85 8 Pamba Emmanuel 9/10/2018 SSP 31,820 206.77 9 Joseph Deng Garang 10/01/2019 SSP 50,000 324.50 10 Emmanuel Pamba 14/01/2019 SSP 36,800 238.83 11 Emmanuel Candiga 26/01/2019 SSP 104,000 672.36 12 Emmanuel Panba 26/01/2019 SSP 124,000 801.66 13 Emmanuel Pamba 29/01/2019 SSP 1.01,000 653.27 14 Guyson Adikobaa 29/01/2019 SSP 200,000 1,293.60 Total 18,402.64 16 …价…· rå ht in cc ci 21 ro 00 42 bo et 2 72 C4 om cL c- -j - 0 tj . V = V) 3 it: eg gj 't- 9 cc 4n (DO Local Governance and Service Delivery Project Seven Months Financial Statements For the Period Starting July 1, 2018 to January 31, 2019 ANNEX 1A PENDING BILLS Jul 18-Jan 19 2017/18 US US Construction of buildings 0.00 0.00 Construction of civil works (PDG Sub Projects) 0.00 320,027.00 Supply of goods (Starter Kits for counties) 0.00 136,927.25 Supply of services 0.00 895.747.92 0.00 1,352,702.17 ANNEX lB PENDING STAFF BILLS Jul 18-Jan 19 2017/18 USS USS Permanent employees - management 0.00 0.00 Permanent employees - others 0.00 0.00 Temporary employees-(Consultants) 0.00 125,177.00 Others (specify) 0.00 0.00 0.00 125,177.00 19