a, frh{{l f Cnb AUDIT SERVIGES IrRZet hcr hnl CORPORATION THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA MINISTRY OF FINANCE URBAN PRODUCTIVE SAFETY NET AND JOBS PROJECT (UPSNJP) PI69943 INDEPENDENT AUDITOR'S REPOITT AND FINANCIAL STATEMENTS 07 JULY 2024 tld;kl"tt ?q oolP/,9 G;t \rP-,.'l-C ?Y"141 {'Cood, h?d\"Ift"t ?cT/,n7 Office of the Federal Auditor General Audit Seruice Corporation INDEPENDENT AUDITOR'S REI'ORT ON THE FINANCIAL STATEMENTS OF THE, MINISTRY OF FINANCE URBAN PRODUCTIVE SAFETY NET AND JOBS PROJECT (UpSNJp)-t'169943 Opinion We have audited the accompanying financlal statements of Urban Productive Safety Net and Jobs Project of the Federal Democratic Republic of Ethiopia, Ministry of lrinance, financed by IDA grant number D732-ET, TF 88808 and TF B 8764, which comprise the balance sheet as at 07 July 2024, and the statement of sources and uses of funds and a Designated Account statement for the year then ended, and a summary of significant accounting policies and other explanatory information. In our opinion the financial statements give a true and fair view of the financial position of Urban Productive Safety Net and Jobs Project of the Federal Democratic I{epublic of Ethiopia, Ministry of Finance, financed under IDA grant number D732-ET, TF 88808 and TF B 8764 as at 07 July 2024 atd of its sources and uses of funds for the year then cnded in accordance with the Ethiopian Government's Manual of the Federal Accounting System which is based on a modified cash basis of accounting. Basis for Opinion We conducted our audit in accordance with International Standards on Auditing (ISA). We are independent of the audited entity / Ministry of Finance and its sub implernenters in accordance with the relevant ethical requirements relating to the audit , and have fulfilled the auditor's other ethical responsibilities in accordance with these requirements as per the International Ethics Standards Board for Accountants' Code of Ethics for Professional Accountants(IESBA Code). We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. #(' Responsibilitics of Managemcnt for the F inancial Statcmcnts The Ministry of Finance is responsible for the preparation and fair presentation of these financial statements in accordance with the Ethiopian Government's Manual of the llederal Accounting System which is based on a modified cash basis of accounting and lor such internal control as the Ministry determines is necessary to enable the preparation of hnanoial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibilities for thc Audit of thc }-inancial Statemcnts An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. 'Ihe procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the hnancial 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 hnancial statements in order to design audit procedures that are appropriate in the circumstances, but not forthepurpose of expressing an opinion onthe 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 rvell as evaluating the overall presentation of the financial statements, Report on other requirements As required by the terms of reference and the World Bank guidelines we must report, in addilion to our opinion, that - during the period all external financing has been used in accordance with the conditions of thc relevant financing agreements, with due attention to economy and clficiency, and only for the purposes for which the financing was provided; - goods, works and services financed have been provided in accordance with the relevant financing agreement and disbursement letters; - all necessary supporting documents, records and accounts have been maintained in respect of all Project activities; - Designated Account has been maintained in accordance with the provisions of the financing agreement and funds disbursed out of the r\ccount were used only for the purposes intended in the financing agreement; k3c - National laws and regulations have been complied with and that the Iinancing and accounting procedures approved for the Project; - Financial performance of the Project is satisfactory; - Assets procured from Project funds exist and there is a verifiable evidence of ownership by the Project implementing beneficiaries in line with the financing agreement; - We did not come across with any ineligible expenditures included in withdrawal applications; and - Our examination revealed no major weaknesses or irregularities in the system of internal control over financial expenditures. - Furthermore, with respect to the interim financial reports (lFRs) submitted during the year ended 07 July 2024 and listed on page 14, in our opinion, I. the reports, together with the procedures and internal controls involved in their preparation, can be relied upon to support the relevant withdrawals; ii) adequate supporting documentation has been maintained to snpport claims to IDA; and iii) expenditures are eligible for financing under IDA grant number D732-ET, TF 88808 and fF B 8764. Auo.rr :;ervre e c'&E-pc9{Lft-T'vo l\) Date: 01 January 2025 3 MINISTI{Y OF TINANCE UIII}AN PII.ODUCTIVE SAFE'TY NIi'f AND .IOI}S PRO.IEC'I'_ P1699.13 I]ALANCE SHEET AS AT 07 JULY 2024 2024 2023 Notes Ilirr Birr CURREN'| ASSEl'S a Cash J 3,660,945,202 6,702.044,621 Advances 4 t80.147.967 26L593-410 Total Current assets 3,841,093,169 6,969,653,097 CURRENI' LIABILITI]]S I Payablc 5 145 .97 6.7 19 162.t22.063 NET CURRITNT ASSEl.S 3.69s.116.450 6.807.531.031 t REPRESENTED BY FUND BALANCE, 6 3.695.116.450 6,80ru31-034 4 VTINISTITY OF FINANCIi URI]AN I'RODUCTIVE SAFETY NIiT AND .IOBS PI{O.II]C'I'_ PI699-13 STATEMENT OF SOUIICES AND USES OF FUNDS FOR THE PtrRIOD ENDED 07 JIJLY 2024 Cumulative from 0l ,Ian. 2021 to 07 .Iuly 2023 2024 Ilirr Ilirr llirr Sources Grant frorn IDA D7320 El| 2.136.t60.059.73 I 8.289.968.339.01 t2,953,433, 108.28 Government Contribution 3,331 ,229,935.61 4,638,647 ,959.66 | ,069 ,644,254 .99 TFB 8808 1,234,989,800 1,234,989,800 - 'fFB8764 339,38 r,600 339,38 r.600 Refund I}om UPSNP 52,011,166 52,011,\66 Bank error (50) (50) - Gain on Foreign Exchange 8t .445 .182.56 195, 195,278.85 64.243,848,29 7 .781.223.693.96 24,750,200,093.52 I 4,087,321,2 t l.s6 Uses Conrponent onc I'r"rblic rvorl