Independent auditor’s report To the Project Management Unit of Social Support Fund Introduction 1. We have audited the accompanying financial statements of Social Support Fund (additional fund of the IBRD 8773-AO of the Local Development Project (LDP 105101)) denominated in United States Dollar (USD). These financial statements comprise the Consolidated Statement of Sources and Uses of Funds at 31 December 2019 with total available treasury of 23 172 226 USD, a total expenditures of 11 164 905 USD and a total final cash balance of 12 007 321 USD, a Statement of Expenditures by Component, a Statement of the Designated Bank Account Movement, a Statement of Expenditure compared with total budget, a Statement of expenditure of the Designated Bank Account for the year then ended and the corresponding annexes. Project Management Unit’s responsibility for the financial statements 2. The Project Management Unit are responsible for the preparation and fair presentation of these financial statements in accordance with International Public Sector Accounting Standards (“IPSAS”) – cash basis and the terms and conditions of the Loan Agreement of the additional fund of the IBRD 8773-AO of the Local Development Project (LDP 105101) and for such internal control, as the Management determine necessary to enable the preparation of financial statements that are free from material misstatements, whether due to fraud or error. Auditor’s responsibility 3. Our responsibility is to express an opinion on the financial statements based on our audit. We conducted our audit in accordance with the Technical Standards issued by the Institute of Statutory Auditors ‘‘Ordem dos Contabilistas e Peritos Contabilistas de Angola”. 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. PricewaterhouseCoopers (Angola), Limitada, Edifício Presidente - Largo 17 de Setembro, nº3, 1ºandar - Sala 137 , Luanda - República de Angola T: +244 227 286 109, F:+244 222 311 213, www.pwc.com/ao @ 2020 PricewaterhouseCoopers (Angola), Limitada. All rights re served. In this document, “PwC” refers to PricewaterhouseCoopers (Angola), Limitada, which is a member firm of PricewaterhouseCoopers International Limited, each member firm of which is a separate legal entity 4. 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 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, 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 the Project Management Unit, as well as evaluating the overall presentation of the financial statements. 5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified opinion. Basis for qualified opinion 6. We have not obtained the budget for the workplan of the activities implemented in 2019 nor the evidence of approval by the World Bank of the budget by the component. As a result, we were unable to verify whether the expenses for the period ended 31 December 2019 were incurred within the limits and conditions described in the Loan Agreement of the additional fund of the IBRD 8773-AO. Additionally, the independent auditor’s report on the financial statements for the year ended 31 December 2018, issued on 8 August 2019 included a qualification on the limitation of scope related to this matter. Opinion 7. In our opinion, except for the possible effect of the matter described in the basis for qualified opinion paragraph, the financial statements referred to in paragraph 1 above present fairly in all material respects, the financial position of the Additional Fund IBRD 8773-AO of the Local Development Project (LDP 105101) as at 31 December 2019 and of its financial performance and cash flows for the year then ended prepared in accordance with International Public Sector Accounting Standards (“IPSAS”) – cash basis and the terms and conditions of the Loan Agreement of the additional fund of IBRD 8773-AO. Emphasis of matter 8. Without affecting the opinion expressed in the previous paragraph, we draw your attention to Note 6 of the annex to the financial statements related to the possible impact of the COVID-19 pandemic on the project. 2 of 3 Other Matters 9. We draw your attention to the following: i. The information relating to the contribution of the Government of Angola (Counterparty) on the implementation of the Local Development Project (LDP 105101) for the year ended 31 December 2019 was not available; ii. We did not find exceptions in relation to the disbursements of Funds to communities, decentralized entities and the provincial offices of the Social Support Fund; iii. Payments made to the beneficiaries under Matching Grants were made in accordance with section H of the Loan Agreement; iv. At this date, we delivered another report on the main deficiencies identified in the internal control environment of the project Luanda, October 2, 2020 PricewaterhouseCoopers (Angola), Lda Registered at Ordem dos Contabilistas e Peritos Contabilistas de Angola under the nº E20170010 Represented by: Mário Miranda, Expert Accountant Nº 20120085 3 of 3