NATIONAL PRIMARY HEALTHCARE DEVELOPMENT AGENCY Nigeria State Health Investment Project (NSHIP) FINANCIAL STATEMENT 31 DECEMBER 2020 & COMPANY Scanned with CarnScanner NIGERIA STATE HEALTH INVESTMENT PROJECT (NSHIP) AUDITED FINANCIAL STATEMENTS 31ST DECEMBER 2020 TABLE OF CONTENTS Page Project Profile 2 Project Background Information 4 Statement of Project's Management Team Responsibilities 5 Report of the 8ndependent Auditors 6 Statement of Financial Position 8 Statement of Financial Performance 9 Statement of Changes in Equity 10 Statement of Cash Flow 11 Statement of Principal Accounting Policies 12 Notes to the Financial Statement 13 Scanned with CamScanner NIGERIA STATE HEALTH INVESTMENT PROJECT (NSHIP) AUDITED FINANCIAL STATEMENTS 31sT DECEMBER 2020 PROJECT PROFILE NAME OF PROJECT: NIGERIA STATE HEALTH INVESTMENT PROJECT (NSHIP) ADDRESS: NO. 4, William Tolbert Street Off Hails Selassie Street Asokoro Abuja Email: national nshi prawnail.com nationai nship0of(eimaii.com PROJECT COMMENCEMENT DATE: November 2013 PROJECT MANAGEMENT TEAM: Hajia Binta Ismail - National Project Coordinator Mohammed A. Mohammed - Deputy National Project Coordinator Daniel Udounwa - Project Accountant Omega Nduwakan - PBF Focal Person, Adamawa State Seyi Olusunde - PBF Focal Person, Nasarawa State Solape Folarin - PBF Focal Person, Ondo State PROJECT IMPLENTATION AGENCY: National Primary Healthcare Development Agency Plot 681/682, Port Harcourt Crescent Area 11 Garki Abuja PROJECT FINANCIERS: World Bank Group Washington DC USA 2 Scanned with CamScanner NIGERIA STATE HEALTH INVESTMENT PROJECT (NSHIP) AUDITED FINANCIAL STATEMENTS 31sT DECEMBER 2020 PROJECT PROFILE CONTD. BANKERS: Central bank of Nigeria Central Business District Abuja AUDITORS: J. Walter Udoeyop & Udoeyop & Company Plot 804,.Ngozi Okonjo Iweala Way Utako District Abuja Nigeria 3 Scanned with CamScanner NIGERIA STATE HEALTH INVESTMENT PROJECT (NSHIP) AUDITED FINANCIAL STATEMENTS 31s DECEMBER 2020 PROJECT BACKGROUND INFORMATION The Nigerian Health Investment Project (NSHIP) is a result-based (RBF) financing mechanism which builds on lessons from the State Health Systems Development Projects and principles of fiscal decentralization to support targeted health systems reforms in three (3) states for the effective use of public resources to deliver essential health services to the poor. The project proposes to demonstrate that public resources can be effectively leveraged through strategic use of Performance Based Financing to strengthen accountability at all levels of the Health System. The RBF mechanism allows direct monetary payments to Health Facilities with autonomy to use the Financial Resources for the improvement of health facilities as well as incentive payments to staff and social marketing. The National Primary Health Care Development Agency (NPHCDA), an Agency of the Federal Government which provides and implementation guidance to strengthen the delivery of Primary Health Care Services in the Country serves as the National Coordinating Office. The Project works with the Federal Government and eight states: Adamawa, Bauchi, Bomu, Gombe, Nasarawa, Ondo, Taraba and Yobe States. The NSHIP States (Adamawa, Nasarawa and Ondo) commenced project implementation since December 2011 while the project objective is to increase the delivery and use of high impact maternal and child health interventions and to improve the quality of care at selected health facilities in the participating States. 4 Scanned with CamScanner NIGERIA STATE HEALTH INVESTMENT PROJECT (NSHIP) AUDITED FINANCIAL STATEMENTS 31ST DECEMBER 2020 STATEMENT OF PROJECT MANAGEMENT TEAM'S RESPONSIBILITY The Project Implementation Unit (PIU) is required to prepare the financial statements for each financial year that gives a true and fair view of the state of financial activities of NSHIP at the end of the year and of the Receipt and Disbursement of funds for year then ended and comply with the requirements of Project Implementation Manual (PIM), world Bank financing agreement and the local laws. The responsibilities include ensuring the Company: 1. Keeps proper accounting records that disclose, with reasonable accuracy, the financial position of the Project and comply with the requirements of the Project Implementation Manual (PIM), world Bank financing agreement and the local laws. 2. Establish adequate internal controls to safeguard its assets and to prevent and detect fraud and other irregularities; and 3. Prepare its financial statements using suitable accounting policies supported by reasonable and prudent judgments and estimates and are consistently applied. The PIU accept responsibility for the annual financial statements, which have been prepared using appropriate accounting policies supported by reasonable and prudent judgments and estimates, in conformity with requirements of the Financial Reporting Council of Nigeria, Project Implementation Manual (PIM), world Bank financing agreement and the local laws. The PIU are of the Opinion that the financial statements give a true and fair view of the state of the financial affairs of the Project and of the Surplus for the year. PIU further accepts the responsibility for the maintenance of the accounting records that may be relied upon in the preparation of financial statements, as well as adequate systems of internal financial control. Hajia Binta Ismail Daniel Udounwa Project Coordinator Date Project Accountant Date 5 Scanned with CamScanner Jwa*omo CHaRDACCOUNTAS pt 804 hod onO*eafa Way & COMP N Utako Abuja FCT NOa Tel 0703-347-0066, Emal:judoeyqp@9maF7 cOm REPORT OF THE INDEPENDENT AUDIT OF NIGERIA STATE HEALTH INVESTMENT PROJECT (NSHIP) Report on the financial statements We have audited the accompanying financial statements of Nigeria State Health Investment project (NSHIP) for the year ended 31 December 2020 set out on pages 8 to 17. Project Implementation Unit's responsibility for the financial statements The Project Implementation Unit (PIU) is responsible for the preparation and fair presentation of these financial statements in accordance with International Public Sector Accounting Standards and with the requirements of the World Bank Financing Agreement and Local laws. This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of financial statements that are free 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 the financial statements based on our audit We conducted our audit in accordance with Intemational Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform our audit to obtain reasonable assurance that 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 auditors 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 company's internal control, An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Project Implementation Unit (PIU)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 opinion. 6 S Scanned with CamScanner Opinion In our opinion the accompanying financial statements give a true and fair view of the state of NSHIP financial affairs at 31 December 2020 and of its Income and cash flows for the year then ended in accordance with Financial Reporting Council of Nigeria, World Bank Financing Agreement Project Implementation Manual and the local laws. 4& John Udoeyop FRCIICAN120161000000113831 J. Walter Udoeyop & Company Chartered Accountants Abuja, Nigeria Date 7 Scanned with CamScanner NIGERIA STATE HEALTH INVESTMENT PROJECT (NSHIP) AUDITED FINANCIAL STATEMENTS STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2020 2020 2019 NOTE N 1 ASSETS NON.CURRENT ASSETS Property, Plant & Equipment 1 168,782,480 128,899,672 TOTAL ASSETS 168,782,480 128,899,672 CURRENT ASSETS Cash & Cash Equivalents 2 52,506,687 62,832,088 Receivables 3 0 1,277,995,061 TOTAL CURRENT ASSETS 52,506,687 1,340.827,149 TOTAL ASSETS 221,289,167 1,469,726,821 CAPITAL AND RESERVES Financial Performance - Surplus/(Deficit) 220,710,434 1,198,053,891 Foreign Exchange Translation 578,733 578,733 TOTAL SURPLUS 221,289,167 1,198,632,624 LIABILITIES CURRENT LIABILITIES Payables 4 0 6,568,290 Accruals 5 0 264,525,524 TOTAL CURRENT LIABILITIES 0 271,093,814 TOTAL EQUITY AND LAIBILITIES 221,289,167 1,469,726,821 Hajia Binta Ismail (Project Coordinator) ....................... Signature Date Daniel Udounwa (Project Accountant) . ..................................................... Signature Date Accounting Policies and Notes form part of these financial statements, Auditors' report on pages 6-7. 8 Scanned with CamScanner NIGERIA STATE HEALTH INVESTMENT PROJECT (NSHIP) FINANCIAL STATEMENTS STATEMENT OF FINANCIAL PERFORMANCE FOR THE YEAR ENDED 31 DECEMBER 2020 2020 2019 NOTES N N REVENUE IDA Credit 6 (434,650,146) 778,293,181 Total Revenue (434,650,146) 778,293,181 EXPENDITURE Consultancy, Training & Workshop 7 442,121,029 395,456,118 Operating Expenses 8 37,122,155 93,380,436 Depreciation on Property, Plants & 1 219,917,191 74,173,554 Equipment Total Expenditure 699,160,375 563,010,108 SurplusiDeficit (1,133,810,521) 215,283,073 Accounting Policies and Notes form part of these financial statements, Auditors' report on pages 6-7. 9 Scanned with CamScanner NIGERIA STATE HEALTH INVESTMENT PROJECT (NSHIP) FINANCIAL STATEMENTS STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2020 RETAINED FOREIGN TOTAL EQUITY EARNING EXCHANGE TRANSLATION M N Balance as at 0110112019 982,770,818 578,733 983,349,551 Financial Performance for the year Surplust(Deficit) for the year 215,283,073 - 215,283,073 Balance as at 3111212019 1,198,053,891 578,733 1,198,632,624 Current Year Changes in Equity Surplus/(Deficit) for the Year (1,133,810,521) - (1,133,810,521) Prior Year Adjustment 156,467,064- 156,467,064 Balance as at 3111212020 220,710,434 578,733 221,289,167 Accounting Policies and Notes form part of these financial statements, Auditors' report on pages 6-7 10 Scanned with CamScanner NIGERIA STATE HEALTH INVESTMENT PROJECT (NSHIP) FINANCIAL STATEMENTS STATEMENT OF CASH FLOW AS AT 31 DECEMBER 2020 2020 2019 Cash inflow from operating activities N Surplusl(Deficit) for the Year (1,133,810,521) 215,283,073 Adjustments to reconcile surplus to net cash flow from operations: Depreciation on Property, Plant & equipment 219,917,191 74,173,554 Prior Year Adjustments 156,467,064 - Net cash flow from operatng activities (757,426,266) 289,456,627 Cash flow from Investing activities Additions to Property, Plants & equipment (259,800),000) (84,506,000) Net cash flow from financing activities (259,800,000) (84,506,000) Cash flow from Financing activities (Increase)/Decrease in Receivables 1,277,995,061 (279,452,067) increase/(Decrease) in Payables (271,093,814) 5,390,602 Net cash flow from financing activities 1,006,901,247 (274,061,465) Net increase/(decrease) in cash flow (10,325,401) (69,110,838) Cash and cash equivalent as at 1st January 62,832,088 131,942,926 Cash and cash equivalents as at 31st 52,506,687 62,832,088 December Accounting Policies and Notes form part of these financial statements, Auditors' report on pages 6-7. 11 Scanned with CamScanner NIGERIA STATE HEALTH INVESTMENT PROJECT (NSHIP) FINANCIAL STATEMENTS STATEMENT OF ACCOUNTING POLICIES The principal accounting policies adopted in the preparation of these financial statements are set out below. These policies have been consistently applied throughout the years presented, unless otherwise stated. a) Basis of preparation The financial statements are prepared in compliance with international Public Sector Accounting Standards (IPSAS). The financial statements are presented in the functional currency, Nigeria Naira (N), and prepared under the historical cost convention. The preparation of financial statements in conformity with generally accepted accounting principles requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Although these estimates are based on the directors' best knowledge of current events and actions, actual results ultimately may differ from those estimates. b) Revenue recognition IIDA credits are recognized when they are received or become receivable from the financiers (World Bank) c) Property, Plant & Equipment The project has not acquired any Rem of Property, Plant and Equipment yet, but the following policies will be applied when it eventually acquires them. Depreciation on the assets is calculated using the straight line method to write down their cost or revalued amounts to their residual values over their estimated useful lives, as follows: Computer Equipment and Software 33% Plant and Machinery 25% Office Equipment Furniture and Fittings 20% Motor Vehicles 28% The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date. Property, plant and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount The recoverable amount is the higher of an assets fair value less costs to sell and value in use. Gains and losses on disposal of property, plant and equipment (if any) are determined by reference to their carrying amounts and are taken into account in determining operating profit However, there were no impaired items of property, plant and equipment during the year under review 12 Scanned with CamScanner п г ОО � �й _ т гг а ллv А ао т и � и� � �� с� � .i о С С а� �°,�' � n, � т',� � тЛ г ы аи �► ,-« ае ао �; �°_, w � ra /° 7о гг� •.•. о� � -•� О ,� _► � � � т п _ _ � � r� а г г .+ �' г�.� � ^' � N � � "t7 v р -- о л� ы тг v� ° �° й �.•°,� ?, О С7 о �, © � у Г и о_ � о,. о`� г� о т т и о � �у � � = т � � 'а � т гЭа т � � �г � ю -� �� о w-Ч й А о с о со А °од °с,� оnиэ °w °w �� а� и rv и rv о® оо �� о� i° о� N n�i en rt t+a т о т.л w � w г� i?а -• w nэ� -� �+. rv n� -� С71 1! 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Cash and Cash Equivalents N 14 Special Account 52,505,433 62,765,433 Drawn-Down Account 1,255 66,655 5Z506,687 62,832,080 3. Receivables N 4 Staff Advances (note 10) (485) 14,785,067 Staff Advance (note 10) (5,497,492) Due from AF-NSHIP 113,556,437 1,263,209,994 108,058,460 1,277,995,061 4. Payables N 14 OPM (Consultancy -Deliverable 10) 0 132,262,762 OPM (Consultancy - Deliverablel 1) 0 132,262,762 0 264,525,524 5. Other Payables 4 4 Staff unclaimed Advances (note 11) 0 5,497,492 Unclaimed Allowances 0 1,050,798 Local Creditors 0 20,000 0 6,568,290 6. IDA Credit 9 4 Disbursements during the Year (434,650,146) 778,293,181 (434,650,146) 778,293,181_ This represents unused IDA credits returried to World Bank 14 Scanned with CarnScanner NIGERIA STATE HEALTH INVESTMENT PROJECT (NSHIP) FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 CONTD. 4 7. Workshop, Training & Consultancy, M&E N Consultancy 98,723,544 278,571,359 Training 301,621,496 74,799,888 Monitoring & Evaluation 41,775,989 42,084,070 442,121,029 1,062,074,390 8. Operating Cost N 4 Bank Charges - 113,610 Transport & Per Diem/Honorarium 879,220 Maintenance of Vehicles 528,500 450,000 Maintenance of Office Building 418,740 123,000 Local Transport & Travels 33,874,215 10,906,858 Printing & Stationery 570,000 300,000 Fumigation - 2,545,305 Advert, Publicity and Media Expenses 690,000 Office Security - 1,914,496 Maintenance of Office Equipment 392,000 . Sundry Office Items - 600,000 Insurance of Project Vehicles - 30,561,100 Servicing of Other Meetings - 6,850,847 Office Rent 1,338,700 36,846,000 Motor Vehicle Fueling Cost -__ 600,000 37,122,155 93,380,436 15 Scanned with CamScanner NIGERIA STATE HEALTH INVESTMENT PROJECT (NSHIP) FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 CONTD. 9 Staff Advances Olubao Lekan 1,782,879 Adekusibe Michael 2,389,573 Danladi Seidu 16,428 Akinyemi S. 0. 2,500,870 Mohammed Mashin 189,050 John Onah 98,055 Opedile Patrick 1. 101,712 Benson Odaman - Oluremi Onabanjo Seyi Olosunde - 4,830,361 Idris Bello - 200,000 Idris Yusuf - - Binta Ismail - 55,000 Korede Bankole - 1,139,240 Anna Edem - Aisha S. Omar Roseline Olufumbi Kolade Fakeye Elizabeth Modupe 1,125,000 Eze Lambert - Umar A Umar Abubakar Abdulmajid 306,900 Moses Olusegun Olayinka 50,000 -_ 14,785,067 10 Staff Unclaimed Advances N N Egahi Ada 198,851 Stephen Yesufu 198,851 Bakunawa Garba 5,099,790 -_ 5,497,492 16 Scanned with CamScanner NIGERIA STATE HEALTH INVESTMENT PROJECT (NSHIP) FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 CONTD 11. Prior Year Adjustment 4 9 OPM (Consultancy -Deliverable 10) 132,262,762 0 OPM (Consultancy - Deliverablell) 132,262,762 0 Due from AFNSHIP (108,058,460) 156,467,064 0 The OPM were first credited when the service was provided, and the Consultancy Service was debited. However, when payment was made, instead of debiting OPM to clear the balance, the Consultancy Service was debted again. So the Prior Year Adjustment had to be done to correct the error. 17 Scanned with CamScanner Scanned with CamScanner NATIONAL PRIMARY HEALTHCARE DEVELOPMENT AGENCY Nigeria State Health Investment Project (AF-NSHIP) FINANCIAL STATEMENTS 31 MARCH 2021 J.Wa udoop & COMPANY Scanned with CamScanner NIGERIA STATE HEALTH INVESTMENT PROJECT (AF-NSHIP) AUDITED FINANCIAL STATEMENTS 31ST MARCH 2021 TABLE OF CONTENTS Page Project Profile 2 Project Background Information 4 Statement of Projects Management Team Responsibilities 5 Report of the Independent Auditors 6 Statement of Financial Position 8 Statement of Financial Performance 9 Statement of Changes in Equity 10 Statement of Cash Flow 11 Statement of Principal Accounting Policies 12 Notes to the Financial Statement 13 1 Scanned with CamScanner NIGERIA STATE HEALTH INVESTMENT PROJECT (AF-NSHIP) AUDITED FINANCIAL STATEMENTS 31ST MARCH 2021 PROJECT PROFILE NAME OF PROJECT: NIGERIA STATE HEALTH INVESTMENT PROJECT (AF-NSHIP) ADDRESS: NO. 4, William Tolbert Street Off Hails Selassie Street Asokoro Abuja Email: nationalnshio@qmail.com nationainship01()qmail.com PROJECT COMMENCEMENT DATE: November 2018 PROJECT MANAGEMENT TEAM: Hajia Binta Ismail - National Project Coordinator Mohammed A. Mohammed - Deputy National Project Coordinator Daniel Udounwa - Project Accountant Abduirasheed Ado - PBF Focal Person, Bauchi State Peter Adamu Mathias - PBF Focal Person, Borno State Yahaya Ahmed - PBF Focal Person, Gombe Yohanna Markus Y. - PBF Focal Person, Taraba State Abubakar Saleh - PBF Focal Person, Yobe State PROJECT IMPLEMENTATION AGENCY: National Primary Healthcare Development Agency Plot 681/682, Port Harcourt Crescent Area 11 Garki Abuja 2 Scanned with CamScanner NIGERIA STATE HEALTH INVESTMENT PROJECT (AF-NSHIP) AUDITED FINANCIAL STATEMENTS 31st MARCH 2021 PROJECT PROFILE CONTD. PROJECT FINANCIERS: World Bank Group Washington DC USA BANKERS Central bank of Nremi Central Businesssc Abuja AUDITORS: J. Walter Udcejce Cz Plot 804. Ngo-, Ch on-'em 'ay Utako Abuja S Scanned with CarnScanner NIGERIA STATE HEALTH INVESTMENT PROJECT (AF-NSHIP) AUDITED FINANCIAL STATEMENTS 31sr MARCH 2021 PROJECT BACKGROUND INFORMATION The Nigerian Health Investment Project (NSHIP) is a result-based (RBF) financing mechanism which builds on lessons from the State Health Systems Development Projects and principles of fiscal decentralization to support targeted health systems reforms in three (3) states for the effective use of public resources to deliver essential health services to the poor. The project proposes to demonstrate that public resources can be effectively leveraged through strategic use of Performance Based Financing to strengthen accountability at all levels of the Health System. The RBF mechanism allows direct monetary payments to Health Facilities with autonomy to use the Financial Resources for the improvement of health facilities as well as incentive payments to staff and social marketing. The National Primary Health Care Development Agency (NPHCDA), an Agency of the Federal Government which provides and implementation guidance to strengthen the delivery of Primary Health Care Services in the Country serves as the National Coordinating Office. The Project works with the Federal Government and eight states: Adamawa, Bauchi, Bomu. Gombe, Nasarawa, Ondo, Taraba and Yobe States. The NSHIP States (Adamawa. Nasarawa and Ondo) commenced project implementation since December 2011 while the project objective is to increase the delivery and use of high impact maternal and child health interventions and to improve the quality of care at selected health facilities in the participating States. 4 Scanned with CamScanner NIGERIA STATE HEALTH INVESTMENT PROJECT (AF-NSHIP) AUDITED FINANCIAL STATEMENTS 3ST MARCH 2021 PROJECT MANAGEMENT TEAM'S RESPONSIBILITY The Project Implementation Unit (PMU) is required to prepare the financial statements for each financial year (period) that gives a true and fair view of the state of financial activities of AF-NSHIP at the end of the year (period) and of the Receipt and Disbursement of funds for year (period) then ended and comply with the requirements of Project Implementation Manual (PIM), world Bank financing agreement and the local laws. The responsibilities include ensuring the Company: 1. Keeps proper accounting records that disclose, with reasonable accuracy, the financial position of the Project and comply with the requirements of the Project Implementation Manual (PIM), world Bank financing agreement and the local laws. 2. Establish adequate internal controls to safeguard its assets and to prevent and detect fraud and other irregularities; and 3. Prepare its financial statements using suitable accounting policies supported by reasonable and prudent judgments and estimates and are consistently applied. The PIU accept responsibility for the annual financial statements, which have been prepared using appropriate accounting policies supported by reasonable and prudent judgments and estimates, in conformity with requirements of the Financial Reporting Council of Nigeria, Project Implementation Manual (PIM), world Bank financing agreement and the local laws. * The PIU are of the Opinion that the financial statements give a true and fair view of the state of the financial affairs of the Project and of the Surplus for the year (period). PIU further accepts the responsibility for the maintenance of the accounting records that may be relied upon in the preparation of financial statements, as well as adequate systems of internal financial control. Hajia Binta Ismail Daniel Udounwa Project Coordinator Date Project Accountant Date 5 Scanned with CamScanner CHARTRDACCOUNTANTS & COMPANY Pbt 804 NgaoAw-Aeaa Way Utako Aba FCT Nigelia Tel. 0703-347-0066, Emal:judDeyop@gna.com REPORT OF THE INDEPENDENT AUDIT OF NIGERIA STATE HEALTH INVESTMENT PROJECT (AF-NSHIP) Report on the financial statements We have audited the accompanying financial statements of Nigeria State Health Investment project (AF- NSHIP) for the 14 months period ended 31 March 2021 set out on pages 8 to 15. Project Implementation Unit's responsibility for the financial statements The Project Implementation Unit is responsibleforthe preparation and fair presentation of these financial statements in accordance with International Public Sector Accounting Standards and with the requirements of the World Bank Financing Agreement and Local laws. This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of financial statements that are free 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 the 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 our auditto obtain reasonable assurance that 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 auditors 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 entitys 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 company's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, (PMU) 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 opinion. 6 Scanned with CamScanner Opinion In our opinion the accompanying financial statements give a true and fair view of the state of AF-NSHIP financial affairs at 31 March 2021 and of its Income and cash flows for the year then ended in accordance with Financial Reporting Council of Nigeria, World Bank Financing Agreement, Project Implementation Manual and the local laws. John Udoeyop FRClCAN120161000000113831 J. Walter Udoeyop & Company ]. o( 2 I Chartered Accountants ..........--.-.-..--.. Abuja, Nigeria Date 0673'181 7 Scanned with CamScanner NIGERIA STATE HEALTH INVESTMENT PROJECT (AF-NSHIP) AUDITED FINANCIAL STATEMENTS STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2021 31 MARCH 31 DECEMBER 2020 2019 NOTE N 9 ASSETS NON-CURRENT ASSETS Property, Plant & Equipment 1 337,791,693 163,510,000 TOTAL ASSETS 337,791,693 163,510,000 CURRENT ASSETS Cash & Cash Equivalents 2 16,664,067 211,761,623 Receivables 3 0 187,959,949 TOTAL CURRENT ASSETS 16,664,067 399,721,572 TOTAL ASSETS 354,455,760 563,231,572 CAPITAL AND RESERVES Financial Performance - Surplus/(Deficit) (128,728,278) 563,231,872 TOTAL EQUITY (128,728,278) 563,231,572 TOTAL EQUITY & LIABILITIES 661,271,574 563,231,572 Hajia Binta Ismail (Project Coordinator) ................... d ..................... .. .. Signature Date Daniel Udounwa (Project Accountant) ............................................................................................. Signature Date Accounting Policies and Notes form part of these financial statements, Auditors' report on pages 6-7. 8 Scanned with CamScanner NIGERIA STATE HEALTH INVESTMENT PROJECT (AF.NSHIP) FINANCIAL STATEMENTS STATEMENT OF CHANGES IN EQUITY FOR THE 15 MONTHS PERIOD ENDED 31 MARCH 2021 RETAINED EXCHANGE TOTAL EARNING DIFFERENCE EQUITY N N 4 Balance as at 0111012019 479,703,713 - 479,703,713 Financial Performance for the Year Surplusi(Deficit) for the Year 83,527,859 - 83,527,859 Balance as at 3111212019 563,231,572 - 563,231,572 Current Year Changes in Equity Surplus/(Deficit) for the Period (869,962,014) - (869,962,014) Exchange Difference - 432,391,250 432,391,250 Prior Year Adjustments 228,794,952 228,794,952 Balance as at 3110312021 (77,935,490) 432,391,250 354,455,760 Accounting Policies and Notes form part of these financial statements, Auditors' report on pages 6-7 10 Scanned with CamScanner NIGERIA STATE HEALTH INVESTMENT PROJECT (AF-NSHIP) FINANCIAL STATEMENTS STATEMENT OF CASH FLOW FOR THE 15 MONTHS PERIOD ENDED 31 MARCH 2021 15 MONTHSPERIOD YEAR ENDED 31 ENDED 31 MARCH DECEMBER 2019 2021 Cash inflow from operating activities N Surplus/(Deficit) for the Year (824,108,601) 83,527,859 Adjustments to reconcile surplus to net cash flow from operations: Depreciation to property, plants & equipment 183,413,653 70,420,000 Prior year adjustments 285,499,852 - Exchange difference 504,500,000 - Net cash flow from operating activities 281,453,655 153,947,859 Cash flow from Investing activities Additions to Property, Plants & Equipment (403,548,759) - Net cash flow from financing activities (403,548,759) - Cash flow from financing activities (increase)/decrease in Receivables 187,959,949 (165,854) Net cash flow from financing activities 187,959,949 (165,854) Net increase/(decrease) in cash flow 65864,845 153,782,005 Cash and cash equivalent as at 1,t January 211,761,623 57,979,618 Cash and cash equivalents as at 31st 277,626,468 211,761,623 December Accounting Policies and Notes form part of these financial statements, Auditors' report on pages 6-7. 11 Scanned with CamScanner NIGERIA STATE HEALTH INVESTMENT PROJECT (AF-NSHIP) FINANCIAL STATEMENTS STATEMENT OF ACCOUNTING POLICIES The principal accounting policies adopted in the preparation of these financial statements are set out below. These policies have been consistently applied throughout the years presented, unless otherwise stated. a) Basis of preparation The financial statements are prepared in compliance with International Public Sector Accounting Standards (IPSAS). The financial statements are presented in the functional currency, Nigeria Naira (N), and prepared under the historical cost convention. The preparation of financial statements in conformity with generally accepted accounting principles requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Although these estimates are based on the directors' best knowledge of current events and actions, actual results ultimately may differ from those estimates. b) Revenue recognition IIDA credits are recognized when they are received or become receivable from the financiers (World Bank) c) Property, Plant & Equipment The project has not acquired any item of Property, Plant and Equipment yet, but the following policies will be applied when it eventually acquires them. Depreciation on the assets is calculated using the straight line method to vaite don their cost or revalued amounts to their residual values over their estimated useful lives, as follows: Computer Equipment and Software 33% Plant and Machinery 25% Office Equipment, Furniture and Fittings 28% Motor Vehicles 28% The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date. Property, plant and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount The recoverable amount is the higher of an assets fair value less costs to sell and value in use. Gains and losses on disposal of property, plant and equipment (if any) are determined by reference to their carrying amounts and are taken into account in determining operating profit However, there were noimpaired items of property plants and equipment during the year under review 12 Scanned with CamScanner NIGERIA STATE HEALTH INVESTMENT PROJECT (AF-NSHIP) FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS FOR THE 15 MONTHS PERIOD ENDED 31 MARCH 2021 CONTD. 1. Property, Plants & Equipment Motor Vehicles Furniture & Total Fittings Cost N N N As at 0110112020 251,500,000 - 251,500,000 Additions - 403548,759 403,548.759 As at 3110312021 251,500,000 403,548,759 655,048,759 Depreciation As at 01/01/2020 87,990,000 - 87,990,000 Current Peiod Charge 88,025,000 141,242,066 229,267,066 As at 3110312021 176,015,000 141,242,066 317,257,066 NBV as at 3111212019 163.510,000 163,510,000 NBV as t 3110312021 75,485,000 262.306,693 337,791,693 2. Cash and Cash Equivalents N N Special Account 43,585 46,140,546 Drawn-Down Account 16,620,482 165,621,078 16,664,067 211,761,624 3. Receivables N N Staff Advances (note 9) 0 167,051,269 Local Contractor 0 20,908,680 0 187,959,949 13 Scanned with CamScanner NIGERIA STATE HEALTH INVESTMENT PROJECT (AF-NSHIP) FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS FOR THE 15 MONTHS PERIOD ENDED 31 MARCH 2021 CONTD. 4. IDA Credit N Disbursements during the Year 2,663,700,632 1,207,150,198 Refund to IDA -WBG (153,322,811) - 2,510,377,821 1,207,150,198 IDA Credits is treated as revenue in line with IPSAS 23 which prohibits the treatment of Grants as Equity 5. Miscellaneous Income N Miscellaneous income 12,955,275 1,207,150,198 12,955,275 1,207,150,198 6. Workshop Training & Consultancy N H Stakeholders Training 179,457,976 120,406,553 Independent Verification Agents 498,721,060 220,698,777 International & Local Consultants 301,019,367 44,949,614 Contract Management Verification Agents 722,595,157 554,125,579 Impact Assessment 1,351,045,530 7,765,695 Foreign Training - 721,735 3,052,839,090 948,667,953 7 Monitoring & Evaluation N N Monitoring & Evaluation 205,595,817 77,572,986 205,595,817 77,572,986 8. Operating Cost N 4 Bank Charges 580,414 430,535 Transport & Per Diem/Honorarkim 600,000 1,575,000 Fumigation 8,395,310 3,392,350 Office Security 3,893,828 1,582,376 Vehicle Maintenance 18,807,206 2,758,500 Printing & stationery 2,710,700 - Office Building Maintenance 7,160,000 300,000 Local Transport & Travel 12,971,615 12,398,143 Internet Subscription - 27,156,231 Fueling & Maintenance of Generator 3,796,875 1,296,750 58,915,948 50,889,885 14 Scanned with CamScanner NIGERIA STATE HEALTH INVESTMENT PROJECT (AF-NSHIP) NOTES TO THE FINANCIAL STATEMENTS FINANCIAL STATEMENTS FOR THE 15 MONTHS PERIOD ENDED 31 MARCH 2021 CONTD. 9.. Prior Year Adjustment N N Due to NSHIP 37,942,008 0 Drawn Down Account (Balance) 165,621,078 0 Special Account 46,140,546 0 Local Contractors (20,908,680) 228,794,952 0 * The Software did not recognize closing bank balances in arriving at the bank balances. Hence the prior year adjustment to incorporate closing balances to the account. * The net of the amount due to NSHIP after retirements of staff advances. * The expense item was not debited when the local contractor performed the given assignment. 10. Exchange Difference DOLLAR RECEIPT CONVERSION EXCHANGE EXCHANGE SIN DATE VALUE RATE RATE DIFFERENCE DIFFERENCE (RATE) $ N N N N 1 24/01/2020 300,000.00 305.00 325,00 20.00 6,000,00000 2 1210212020 1,000,000.00 305.00 325.00 20.00 20,000,000.00 3 17/03/2020 500A0.00 305.00 325.00 20.00 10,000,000.00 4 22/0512020 800,00000 305.00 360.00 55.00 44,000,000.00 5 01107/2020 300,000 00 305.00 360.00 55.00 16,500,000.00 6 05/08/2020 1,00010000 305.00 380.00 75.00 75,000,000.00 7 3010812020 110001000,00 305.00 380.00 75.00 75,000,000.00 8 23100/2020 1,000000.00 305,00 380.00 75.00 75,000,000.00 9 2/11012020 1000,000.00 305.00 380.00 75.00 75,000,000.00 10 10/11/2020 200,000.00 305.00 380.00 75,00 15,000,000.00 11 01/1212020 200 000.00 30500 380.00 7500 15,000,000.00 12 0310212021 78,5.00 305.00 38000 75.00 5,891,250.00 Total 432,391,250.00 15 Scanned with CamScanner NIGERIA STATE HEALTH INVESTMENT PROJECT (AF-NSHIP) FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS FOR THE 15 MONTHS PERIOD ENDED 31 MARCH 2021 CONTD, 11. Staff Advances N Ogbe Oritseweyimi 1,699,573 Binta Ismail 2,725,200 Mohammed A. Mohammed - 4,070,095 Daniel Udounwa - 1,371,000 Adekusibi Adeleye - 6,369,320 Benita Ukwueze - 716,871 Muhammad Mashin - 1,350,000 Korede Bankole - 2,228,800 Ibrahim Sirajo - 3,025,000 NPHCDA-NSHIP - 143,495,410 -_ 167,051,269 16 Scanned with CamScanner Scanned with CamScanner