REGIONAL DISEASE SURVEILLANCE SYSTEMS ENHANCEMENT (REDISSE) II PROJECT LOAN IDA NO. 59700 - NG PROJECT No: P159040 PROJECT FINANCIAL STATEMENTS AND INDEPENDENT AUDITOR'S REPORT FOR THE EIGHT (8) MONTHS PERIOD ENDED 31ST AUGUST 2023 ,'Maa& Co Catere Accounta~nts Page I 0 REGIONAL DISEASE SURVEILLANCE SYSTEMS ENHANCEMENT (REDISSE) II PROJECT EIGHT (8) MONTHS PERIOD ENDED 31ST AUGUST 2023 LOAN IDA NO. 59700 - NG PROJECT No: P159040 CONTENTS PAGE 1. Project Information 2 2. Introduction 3 3. Statement of Management's Responsibilities for the Preparation of the Project Financial Statements and Approval of the Financial Statements 4 4. Independent Auditor's Report 5 5. Project Financial Statements 8 6. Notes to the Project Financial Statements 13 Appendices Al Statement of Designated Account - Loan IDA No. 59700 16 A2 Local Bank Account Statement Human Health -Loan IDA No. 59700 17 A3 Local Bank Account Statement Animal Health -Loan IDA No. 59700 18 B Statement of Expenditure ("SOE") 19 C Reconciliation Statement of World Bank's Disbursements 20 D Summary of Fixed Assets 21 E Details of Accounts Payable 22 Page REGIONAL DISEASE SURVEILLANCE SYSTEMS ENHANCEMENT (REDISSE) II PROJECT EIGHT (8) MONTHS PERIOD ENDED 31ST AUGUST 2023 LOAN IDA NO. 59700 - NG PROJECT NID: P159040 1.0 PROJECT INFORMATION Management: Mrs. Olukemi Ladeinde Project Coordinator Ani Robinson Internal Auditor Ogunmakinde Israel Asst. Project Accountant - Human Health Timothy Thomas Asst. Project Accountant - Animal Health Tijjani Mohammed Finance Officer - Human Health Sector Chamberlin Aguwanba Finance Officer - Animal Health Sector IDA Credit No. 59700-NG Borrower: Federal Republic of Nigeria Implementing Agency: Nigeria Centre for Disease Control (NCDC), Abuja Effective Date: November 2nd 2017 Closing Date: August 315t, 2023 Credit Amount: USD90,000,000:00 Project Duration: Five (5) Years Registered Address: Plot 804 Ebitu Ukiwe Street Jabi, Abuja Nigeria. Auditors: Messrs UHY Maaji & Co. (Chartered Accountants) Plot 107, Chinyeaka Ohaa Crescent Wuye District, P.O. Box 4640, Garki Abuja. Email: maajijoo@yahoo.co.uk Bankers: Central Bank of Nigeria (CBN) First City Monument Bank- UK Page 2 REGIONAL DISEASE SURVEILLANCE SYSTEMS ENHANCEMENT (REDISSE) II PROJECT LOAN IDA NO. 59700 - NG PROJECT No: P159040 2.0 INTRODUCTION 2.1 BACKGROUND The REDISSE Project is funded by the World Bank to cover all countries in the ECOWAS sub-region because of the 2014/20 15 Ebola crisis in West Africa. The project is cross-sectoral (with human health and animal health sector implementation) and proposes regional collaboration (to eventually include all ECOWAS countries plus Mauritania), in order to ensure that gaps in disease detection and outbreak response across the West African sub-region are effectively addressed. Successful implementation will minimize the health and economic consequences of such disease outbreaks. The Federal Government of Nigeria as a member of ECOWAS, applied for financing from the International Development Association (IDA) for a Credit towards ensuring that disease detection and outbreak response across the 36 States and Federal Capital Territory (FCT) are effectively addressed. The REDISSE II project was formally launched in Nigeria on the 27th day of April 2018. Nigeria's Representative/Ministry is the Federal Ministry of Health, Agricultural and Rural/Sustainable Development, FCT-Abuja Nigeria, with the Nigeria Centre for Disease Control (NCDC) as the implementing agency. The implementing agency, Nigeria Centre for Disease Control (NCDC), intends to apply part of the proceeds of this credit to pay under the contract for consultancy Services for the engagement of External Auditor to audit the REDISSE II Nigeria Project Financial Statements annually. The Project Development Objectives i) To strengthen national and regional cross-sectoral capacity for collaborative disease surveillance and epidemic preparedness in West Africa, thereby addressing systemic weaknesses within the human and animal health sectors that hinder effective disease surveillance and response; and ii). in the event of an eligible emergency, to provide immediate and effective response to said Eligible Emergency. The REDISSE II project involves four countries: Guinea Bissau, Liberia, Nigeria, and Togo. REDISSE complements the Pandemic Emergency Facility (PEF). i) by focusing on capacity for disease surveillance and epidemic preparedness, countries will be better able to contain outbreaks before they develop into Public Health Emergency of International Concern (PHEIC) or Disease Outbreak Notification (DON) events and trigger the PEF; and ii) it includes a Contingent Emergency Response Component (CERC) so that countries will be able to mobilize funds quickly from within the project in the event of an outbreak which may assist in preventing the need to trigger PEF. The Board of the World Bank (IBRD-IDA) approved the REDISSE II project on March 1, 2017 and expected to run from 2017 to 2023. The project is targeted at supporting initiatives in five thematic areas across the human and animal health services. These areas include: - (1) Surveillance and Information Systems; (2) Laboratory Strengthening; (3) Preparedness and Emergency Response (Includes a "Zero Dollar" Emergency Response Component); (4) Human resource management (public health workforce); (5) Institutional Capacity Building, Project Management, Coordination and Advocacy. Page 1 3 REGIONAL DISEASE SURVEILLANCE SYSTEMS ENHANCEMENT (REDISSE) II PROJECT LOAN IDA NO. 59700 - NG PROJECT No: P159040 3.0 STATEMENT OF MANAGEMENT'S RESPONSIBILITIES FOR THE PREPARATION AND APPROVAL OF THE PROJECT FINANCIAL STATEMENTS FOR THE EIGHT (8) MONTHS PERIOD ENDED 31ST AUGUST 2023 The Management of the Nigeria Centre for Disease Control (NCDC), as implemented by the Regional Disease Surveillance Systems Enhancement (REDISSE) II Project is responsible for the preparation of the project financial statements that present fairly the financial position of the Project as at 31st AUGUST 2021, and the summary of sources and uses of funds, summary of expenditure by activity, statement of expenditure (SOE), designated account statements in accordance with the World Bank's Financial Management Sector Board's "Guidelines: Annual Financial Reporting and Auditing for World Bank Financed Activities" (the "World Bank Guidelines"). In preparing the financial statements, management is responsible for: * Carefully selecting and applying accounting policies. * Presenting information, including accounting policies, in a manner that provides relevant, reliable, comparable, and understandable information. * Providing additional disclosures that enable users to understand the impact of particular transactions, other events and conditions on the Project, financial position and its sources and uses of funds and movements in designated accounts. Management is also responsible for: * Designing, implementing, and maintaining an effective and sound system of internal controls, throughout the Project. * Maintaining adequate accounting records that are sufficient to show and explain the Project's transactions and disclose with reasonable accuracy at any time the financial position of the Project, and which enable them to ensure that the financial statements of the Project comply with the Guidelines on Annual Financial Reporting and Auditing for World Bank - Financed Activities issued by the World Bank's Financial Management Sector Board. * Taking such steps that are reasonably available to them to safeguard the assets of the Project and, * Preventing and detecting fraud and other irregularities. The project financial statements for the Eight (8) Months Period ended 31st August 2023 were authorise or n behalf of Management by: Mrs. 0 emi Ladeinde Ogunm kinde Israel Project Coordinator Assistant Project Accountant Dated this .... . ......... day of June 2024 Page I 4 Plot 107, Chinyeaka Ohaa Crescent (Formerly Gidado idris Street) Off Peace Haven Hotel, mmmmmH Before FamilyWorship Centre Wuye DistrictAbuja. FCT, Nigeria. Phone: +234 805 200 1920 +234 803 787 6065 E-mail: maajijoo@yahoo.co.uk Web: www.uhy-ng-maaji.com TO THE MANAGEMENT OF REGIONAL DISEASE SURVEILLANCE SYSTEMS ENHANCEMENT (REDISSE) II PROJECT ON THE AUDIT OF THE FINANCIAL STATEMENTS FOR THE EIGHT (8) MONTHS PERIOD ENDED 31ST AUGUST 2023 Opinion We have audited the accompanying Project Financial Statements of Regional Disease Surveillance Systems Enhancement Project II (the 'Project), financed under the World Bank Loan Agreement No. 59700 dated 2nd November, 2017, which comprise the Project's Statement of Financial Position as at 31stAUGUST 2023, the Summary of Sources and Uses of Funds, Summary of Expenditure by Activity, Statement of Expenditure ("SOE") and Designated Account Statements for the EIGHT (8) MONTHS PERIOD ended 31stAUGUST 2023 and a Summary of Significant Accounting Policies and Other - Explanatory notes. In our opinon, the accompanying Financial Statements of the Project present fairly, in all material respects, the financial position of the Project for the eight (8) months period ended 31st August 2 23, in accordance with the International Public Sector Accounting Standards (IPSAS), World Bank's Financiai Management Sector Board's "Guidelines on Annual Financial Reporting and Auditing for World Bank Financed Activities" and the relevant provisions of the Companies and Allied Matter Act (CAMA), Laws of the Federation of Nigeria 2020, and the Financial Reporting Council of Nigeria (FRC), Act No. 6, 2011. Basis for Opinion We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the audit of the Project Financial Statements section of our report. We are independent of the Project in accordance with the International Ethics Standards Board for Accountants Code of Ethics for Professional Accountants (IESBA Code) and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Emphasis of Matter We draw attention to Note 6 to the project financial statements, which describes the basis of accounting. The project financial statements are prepared to assist the Project's management to comply with the financial reporting provisions of the Agreement, which requires the project financial statements to comply with the Financial Management Sector Board's "Guidelines on Annual Financial Reporting and Auditing for World Bank Financed Activities". As a result, the project financial statements may not be suitable for another purpose. This report is intended primarily for use by the Project's management in reporting the information to the Federal Government of Nigeria and International Bank for Reconstruction and Development and not intended for the benefit of any other third parties. Page 1 5 A member of UHY, an international network of independent accounting and consulting firms.www.uhy.comn Partners: G, Idahosa, N. B. Bargo, J. 0. Omuya, V. Nehikhare, A. Abubakar, 1. S. Ekenta, 1. M. Baba, A. A. Uwadiae, M. G. Shuaibu n i nehi-i- Responsibility of Management and those Charged with Governance for the Financial Statements Management is responsible for the preparation of these Project Financial Statements in accordance with the basis of accounting described in Note 6 and in conformity with the World Bank's Financial Management Manual for World Bank Financed Activities and for such internal controls as management determines necessary to enable the preparation of the Project Financial Statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibilities for the Audit of the Project Financial Statements Our objectives are to obtain reasonable assurance about whether the Financial Statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with International Standards on Auditing (ISAs) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. As part of an audit in accordance with ISAs, we exercised professional judgement and maintained professional skepticism throughout the audit. We also: * Identified and assessed the risks of material misstatement of the Financial Statements, whether due to fraud or error. * Designed and performed audit procedures responsive to those risks, and obtained audit evidence that is sufficient and appropriate to provide a basis for our opinion. * Obtained an understanding of internal controls relevant to the audit 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. * Evaluated the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Management. * Evaluated the overall presentation, structure and content of the Financial Statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. * Obtained sufficient appropriate audit evidence regarding the financial information of the activities within the Project to express an opinion on the Financial Statements. We are responsible for the direction, supervision, and performance of the Project audit. We remain solely responsible for our audit opinion. * Communicated with the Management regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. * Determined those matters that were of most significance in the audit of the Financial Statements of the current period and are therefore the key audit matters, from those matters communicated to the Management. Key Audit Matters Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the separate Financial Statements of the current period. These matters were addressed in the context of our audit of the Financial Statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. However, no such matters were identified during our audit. Page 1 6 Report on Other Legal and Regulatory Requirements In accordance with the requirements of Schedule 6 of the Companies and Allied Matter Act (CAMA), Laws of the Federation of Nigeria 2020, we confirm that: i. We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit. ii. In our opinion, proper books of account have been kept by the Project, in so far as it appears from our examination of those books. iii. The Project's Statement of Financial Position as at 31st August 2023, the Summary of Sources and Uses of Funds, Summary of Expenditure by Activity, Statement of Expenditure ("SOE") and Designated Account Statements for the eight (8) months period ended 31stAugust 2023. Predetermined Objectives We performed procedures to obtain evidence that the World Bank/IDA credit funds have been provided and used in accordance with the conditions of the relevant financing agreements, with due attention to economy and efficiency, and only for the purposes for which the funding was provided. We evaluated the usefulness and reliability of the reported performance information, including the Statement of Expenditures (SOE)/ Interim Financial Reports (IFR) for the following programmes presented in the annual performance report of the Project for the Eight (8) Months Period ended 31st August, 2023 in respect of: * The Human Health Sector * The Animal Health Sector We evaluated the usefulness of the reported performance information to determine whether it was presented in accordance with the International Public Sector Accounting Standards (IPSAS), World Bank's Financial Management Sector Board's "Guidelines on Annual Financial Reporting and Auditing for World Bank Financed Activities" and whether the reported performance was consistent with the Project objectives. We further performed tests to determine whether indicators and targets were well defined, measurable, time bound, valid, accurate and relevant, as required by the provisions of the Financial Reporting Council of Nigeria (FRC), Act No. 6, 2011. Internal Control System We considered the Internal Controls relevant to our audit of the Financial Statements and compliance with legislation. We did not identify any significant deficiencies in the Project's internal control system. Compliance with Legislations We performed procedures to obtain evidence that the entity had complied with applicable legislations regarding financial matters, financial management and other related matters. We did not identify any instances of material non-compliance with specific matters in key legislation. The audit was performed under the control of the key audit Engagement Partner, Chief Dr .0. Onuya FRC/2012/ICAN 00000000105 Engagement Partner For: UHY Maaji & Co sC'NTITUTSOFCHARTERED (Chartered Accountants) Z Abuja, Nigeria. 0247546 1 2 Dated this .... day of June, 2024 Page 1 7 REGIONAL DISEASE SURVEILLANCE SYSTEMS ENHANCEMENT (REDISSE) II PROJECT LOAN IDA NO. 59700 - NG PROJECT No: P159040 5.0 PROJECT FINANCIAL STATEMENTS 5.1 SUMMARY OF SOURCES AND USES OF FUNDS AND OTHER INCOME FOR THE EIGHT (8) MONTHS PERIOD ENDED 31ST AUGJST, 2023 (in ira) Eight (8) Months Period Ended Cumulative as Cumulative as Cumulative Cumulative Ref. 31.08.2023 at 31.08.2023 at 31.12.2022 Planned Variance Opening Working Capital Cash 535,932,807 Advances 240,248,579 Payables Total 776,181,386 FINANCING Loan from Worki Bank 5.1.2 9,323,331,618 27,032,346,915 17,709,015,297 O th e r in c o m e -4 ,1 8 0 ,o o .o o 441 8010 008 5.2 9,323,331,618 27,036,526,915 17,713,195,297 TOTAL FUND 10,099,513,003 Project Expenditure By Category: Goods, Works, Non- Consulting Services, Consultants' Services and Training 5.1.2 9,489,907,334 25,926,680,276 16,436,772,942 39,038,381,448 13,111,701,172 Operating Cost 5.1.2 190,931,447 1,021,584,909 830,653,462 4,714,132,609 3,692,547,700 Total Expenditure 5.2 9,680,838,781 26,948,265,185 17,267,426,404 43,752,514,057 16,804,248,872 Foreign Exchange Gain 5.2 277,170,889 607,583,381 330,412,492 Total Net Funds as at 31st August, 2023 695,845,111 776,181,386 Closing Working Capital Cash 1,613,042,339 535,932,807 Advances 0 240,248,579 Payables Xiii (917,197,228.8) Total 695,845,111 776,181,386 Signed on behalf of Management by: Mrs. 0 kemi Ladeinde Mr. Ogunirike Israel Project Coordinator Asst. Project Accountant Dated this ... Day of June 2024 Page f 8 REGIONAL DISEASE SURVEILLANCE SYSTEMS ENHANCEMENT (REDISSE) II PROJECT LOAN IDA NO. 59700 - NG PROJECT No: P159040 5.0 PROJECT FINANCIAL STATEMENTS (CONTIlUED) 51.1 SUMMARY OF EXPENDITURE BY ACTIVITY FOR THE PERIOD ENDED 31ST AUGUST, 2023 (in Nfira) ACTUAL PLANNED VARIANCE Ref. Eight (8) Months Cumulative as at Cumulative as at Period Ended Cumulative as at Period Ended Cumulative as at Period Ended 31,08.2023 31,08.2023 31.12.2022 31,08.2023 :31.08.2023 31.12.2023 31,08.2023 Component 1: Surveillance and Informat ion Systems 3,726,571,264 6,020,398,659.18 2,293,827,395 4,099,228,391 11,109,889,956.74 372,657,126 5,089,491,298 Component 2: Strengthening of Labo 3,516,875,755 5,068,948,891.01 1,552,073,136 3,903,732,088 6,510,412,925.17 386,856,333 1,441,464,034 ratory Capacity Component 3: Preparedness and Emergency Response 680,451,022 10,828,860,712.08 10,148,409,691 687,255,532 18,563,371,590.50 6,804,510 7,734,510,878 Component 4: Human Resource Ma nagement for Effectiv e Disease Surveilance and 1,059,348,754 2,371,818,600,23 1,312,469,846 1,091,129,217 2,854,706,975.14 31,780,463 482,888,375 Epdemi Preparednes s Component 5: Insttutonal Capaciy Building, Project Mana gement, 697,591,986 2,658,238,322.32 1,960,646,336 732,471,586 4,714,132,609.44 34,879,599 2,055,894,287 Coordinaton and Advocacy TOTAL EXPENDITURES 5.2 9,680,838,781 26,948,265,185 17,267,426,403 10,513,816,813 43,752,514,057 832,978,032 16,804,248,872 Page 19 REGIONAL DISEASE SURVEILLANCE SYSTEMS ENHANCEMENT (REDISSE) II PROJECT LOAN IDA NO. 59700 - NG PROJECT No: P159040 .0 PROJECT FINANCIAL STATEMENTS (CONIDED) i.1.2 SUMMARY OF SOURCES AND USES OF FUNDS UNDER LOAN IDA NO. 59700 FOR THE PERIOD ENDED 31ST AUGST 2023 (in A ira) Period Ended Cumulative as Cumulative as Cumulative Cumulative Ref, 31.08.2023 31.08,2023 at 31.12,2022 Planned Variance FINANCING lntil Deposit 1,616,500,000.00 1,616,500,000 SoE replnishments 7,104,716,117 21,856,495,379.16 14,751,779,262 . Direct Payments 2,218,615,500 3,559,351,535.56 1,340,736,035- B 9,323,331,618 27,032,346,915 17,709,015,297 Project Expenditure By Category: Soods, Works, Non. Consuting Servces, Consutants' Servies and Training 9,489,907,334 25,926,680,276 16,436,772,942 39,038,381,448 13,111,701,172 Operating Cost 190,931,447 1,021,584,909 830,653,462 4714,132,609 3,692,547,700 Total Expenditure 5.2 9,680,838,781 26,948,265,185 17,267,426,403.55 43,752,514,057 16,804,248,872 Page 1 10 REGIONAL DISEASE SURVEILLANCE SYSTEMS ENHANCEMENT (REDISSE) II PROJECT LOAN IDA NO. 59700 - NG PROJECT No: P159040 5.0 PROJECT FINANCIAL STATEMENTS (CONTINUED) REGIONAL DISEASE 5.1.3 SUMMARY OF SOURCES AND USES OF FUNDS UNDER OTHER INCOME RVEILLANCE SYSTEMS FOR THE PERIOD ENDED 31ST AUGUST, 2023 (REDISSE) II PROJECT (i Nbira) LOAN IDA NO. 59700 - NG PROJECT No: P159040 Eight (8) Months Period Ended Cumulative as Cumulative as Cumulative Cumulative Ref, 31.08.2023 31,08.2023 at 31.12.2022 Planned Variance FINANCING Bid and T enders -4180,000 4,180,000- (4,180,000) 5.1 - 4,180,000 4, 180,000 (4,180,000) Project Expenditure By Category: Goods, Works, Non-Consulting Servtes, Consultants' Servces and Training - . Operating Cost . . Total Expenditure . _. No related expenses were incurred from Other Income within the period covered. Page 1 11 REGIONAL DISEASE SURVEILLANCE SYSTEMS ENHANCEMENT (REDISSE) II PROJECT LOAN IDA NO. 59700 - NG PROJECT No: P159040 5.0 PROJECT FINANCIAL STATEMENTS (CONTIMJED) 5.2 STATEMENT OF FINANCIAL POSITION FOR THE PERIOD ENDED 31ST AUGUST, 2023 (in Abira) Ref: 2023 2022 ASSETS FCMB (UK) Designated Account Al 572,815,581.06 215,774,187 Local Bank Account- Human Health A2 1,000,592,857.03 42,004,300 Local Bank Account- Animal Health A3 39,633,901.26 278,154,320 Advances Xvi - 240,248,579 TOTAL ASSETS 1,613,042,339 776,181,386 LIABILITIES Payables Xiii (917,197,229) - TOTAL LIABILITIES (917,197,229) - NET ASSETS 695,845,111 776,181,386 Funds received: World Bank loan B 27,032,346,914.71 17,709,015,297 Other Income 5.1.3 4,180,000.00 4,180,000 Total funds received 27,036,526,915 17,713,195,297 Expenditure: Project Expenditure: 5.1 (26,948,265,185) (17,267,426,404) Foreign Exchange Gain 5.1 607,583,380.95 330,412,492 TOTAL NET ASSETS 695,845,111 776,181,386 Signed on h Management Mrs. 01 emi Ladeinde Mr. Ogunmaike Israel Project ordinator Asst. Project Accountant Dated this ....... Day of June 2024 * Our audit report is for the eight (8) months period ended 31st August, 2023, and conclusion of the project/ Financing Agreement. However, the project has a grace period of four (4) months till 31st December, 2023 to facilitate settlement of any pending obligations. * During the grace period, a total sum of N794,167,699.43 out of the outstanding liabilities was paid, with the balance of N123,029,529.34 to be paid, covering Audit Fees, Taxes and Contract Retention Fees. * The balance of N123,029,529.34 comprises of N83,395,627.84 in the HHS TSA account and N39,633,901.50 in the AHS TSA account at the end of the grace period. * The total sum of $552,642.46 was refunded to the bank at the end of the grace period. Page 1 12 6.0 NOTES TO THE PROJECT FINANCIAL STATEMENTS FOR THE EIGHT (8) MONTHS PERIOD ENDED 31ST AUGUST, 2023 6.1 REPORTING ENTITY The Federal Republic of Nigeria received $90,000,000 (Ninety Million Dollars) Loan Facility, Reference No 59700 from the World Bank towards the cost of the Regional Disease Surveillance Systems Enhancement Project (Phase II - P159040), being implemented under the supervision of the Nigeria Centre for Disease Control, an Agency of the Federal Ministry of Health. The Federal Ministry of Health (represented by the Nigeria Centre for Disease Control (NCDC) is working in collaboration with the Federal Ministry of Agriculture (represented by the Department of Veterinary services) alongside the Federal Ministry of Environment (FMEnv) to deliver on the targets of the project. The Board of the World Bank (IBRD-IDA) approved the REDISSE II project on March 1, 2017 and expected to run from 2017 to 2023. The project is targeted at supporting initiatives in five thematic areas across the human and animal health services. These areas include: - (1) Surveillance and information systems; (2) Laboratory strengthening; (3) Preparedness and emergency response (Includes a "zero dollar" emergency response component); (4) Human resource management (public health workforce); (5) Institutional Capacity Building, Project Management, Coordination and Advocacy. 6.2 ACCOUNTING POLICIES The principal accounting policies applied in the preparation of these financial statements are disclosed below. These policies have been consistently applied to the EIGHT (8) MONTHS PERIOD presented, unless otherwise stated. i. Statement of Compliance The project financial statements have been prepared in accordance with and comply with International Public Sector Accounting Standards (IPSAS) for the accrual basis of accounting, as issued by the International Accounting Standards Board (IASB), which were effective and available as at 31st August 2023. ii. Basis of Preparation The measurement base applied is historical cost, adjusted for revaluations of assets. The project financial statements have been prepared on a going concern basis and these accounting policies have been applied consistently throughout the period. These accounting policies comply in all material respects with the'Guidelines on Annual Financial Reporting and Auditing for World Bank - Financed Activities' issued by the World Bank's Financial Management Sector Board. Project financing is recognized as a source of project funds when the cash is received and capitalized as IDA Credit but project expenditures are recognized as a use of project funds when they are incurred. Page I 13 REGIONAL DISEASE SURVEILLANCE SYSTEMS ENHANCEMENT (REDISSE) II PROJECT LOAN IDA NO. 59700 - NG PROJECT: P159040 6.0 NOTES TO THE PROJECT FINANCIAL STATEMENTS FOR THE EIGHT (8) MONTHS PERIOD ENDED 31ST AUGUST 2023 iii. Project Loan Financing Project Loan Financing is recognized as source of funds in the period when the cash inflow can be reasonably estimated, and they become available and measurable. iv. Expenditure Expenditure is recognized on an accruals basis as a use of project funds when liability is incurred. v. Functional Currency These project financial statements are expressed in Nigerian Naira. Transactions in currencies other than reporting currencies are converted to Naira at the exchange rate prevailing at the date of the transaction. Monetary items are translated into Naira at the Central Bank of Nigeria (CBN) official exchange rate at the reporting date. vi. Cash Balances Cash comprises balances with Designated Account with Central Bank of Nigeria (CBN) /FCMB (UK) Limited and Treasury Single Accounts with Central Bank of Nigeria (CBN) for; a). Human Health Sector and b). Animal Health Sector vii. Designated Bank Account The designated account is a special disbursement account of the Project maintained in US Dollars at the Central Bank of Nigeria (CBN) /FCMB (UK) Limited to ensure the payment of eligible expenditures, within defined limits, which do not require individual authorization from World Bank in accordance with the Agreement. viii. Special Bank Account According to the terms of the Financing Agreement and in order to facilitate the Project performance, the National Centre for Disease Control opened and maintains two special accounts in Naira with the Central Bank of Nigeria for the Human Health Sector and Animal Health Sector respectively. ix. Methods of Withdrawal The methods of withdrawal used from the inception of the loan to 31st AUGUST 2023 were as follows: (a) Designated Account - REDISSE Project withdraws the eligible amounts, subject to maximum of $5,300,000 at a time from the designated account based on request application for approval by the World Bank, before the approved amount is transferred to the designed account. (b) Direct Payment - Amounts for sub-projects are drawn from the designated account within limits determined under the loan agreement for direct payments of eligible expenditures to third parties Page 1 14 REGIONAL DISEASE SURVEILLANCE SYSTEMS ENHANCEMENT (REDISSE) II PROJECT LOAN IDA NO. 59700 - NG PROJECT: P159040 6.0 NOTES TO THE PROJECT FINANCIAL STATEMENTS FOR THE EIGHT (8) MONTHS PERIOD ENDED 31ST AUGUST 2023 x. Statement of Expenditure Statements of Expenditure are used for recognition of expenses under the Loan paid from the Special account during a calendar, regarding goods, consultancy services, contractual works and contractual services of individual consultants. xi. Inventory Inventory is stated or valued at cost of items in store at the date of reporting. xii. Unremitted Taxes and Accounts payable These are payables (amounts owed and unpaid) at the date of reporting and they are stated at the repayable Value as summarized below See Apendix'E) S/N NneitdTxsad conspybe1 1. Taxes (VAT, WHT & SD) Due for Remittance 64,992,717 2. Outstanding Payments on Infectious Diseases Treatment/ Isolation Centres 54,356,075 3. Payments Due for Services 3,646,100 4 Sundry payables paid during the race period 794,202,337 917,197,229 xiii. Commitments and Contingencies Management is not aware of any commitments and contingencies which would have a material impact on the financial position of the Project as at 31stAugust 2023 and on the funds received and disbursed during the Eight (8) Months Period then ended. However, accrued expenditure and payments due as at period-end have been reserved as account balances in the bank, pending disbursement within the grace period. xiv. Events Subsequent to the Balance Sheet Date There were no significant events subsequent to the balance sheet date that require adjustment or disclosure in these Project Financial Statements. xv. Advances Advances represent the unretired balances out of the payments made to staff, third parties and States to carry out REDISSE activities. The following occurred during the year 2023 2022 Payment to 35 States at N100m each for World Bank Support on COVID 19 Response. f 4 Balance B/F 240,248,579 1,846,643,385 Additions within the year Retirement (158,079,192) (1,606,394,806) Refund (82,169,387) - Page 115 REGIONAL DISEASE SURVEILLANCE SYSTEMS ENHANCEMENT (REDISSE) II PROJECT LOAN IDA NO. 59700 - NG PROJECT No: P159040 STATEMENT OF DESIGNATED ACCOUNT FOR THE PERIOD EIDED 31ST AUGUST, 2023 (in M'bira) APPENDIX A.1 DESIGNATED ACCOUNT STATEMENT Account owned and operated by: Nigeria Centre for Disease Control/World Bank Project TSA Account No.: 70004083 Depository Bank: FCMB UK Address: UK Related Credit: LOAN IDA NO. 59700 Currency: USD Ref. NAIRA USD Opening balance 1 January, 2023 B 215,774,187 503,557.03 Add: World Bank Advance B 7,545,724,800 12,642,331.07 7,761,498,988 13,145,888.10 Deduct: Payments of Bank Charges - Expenditure 21,448 40.00 under Loan IDA No. 59700 - NG Transfer to Naira Drawdown sub-account A.2 7,859,873,453 12,593,205.64 Human Health - Loan IDA No. 59700 - NG Transfer to Naira Drawdown sub-account A.3 Animal Health - Loan IDA No. 59700 - NG 7,859,894,901 12,593,245.64 Add: Foreign Exchange Gain 277,170,889 - Ending balance 31 August 2023 5.2 572,815,581 552,642.46 Page I 16 REGIONAL DISEASE SURVEILLANCE SYSTEMS ENHANCEMENT (REDISSE) II PROJECT LOAN IDA NO. 59700 - NG PROJECT No: P159040 STATEMENT OF DESIGNATED ACCOUNT FOR THE PERIOD EIDED 31ST AUGUST, 2023 (ini I ira) APPEIJIX A.2 DESIGNATED SUB-ACCOUNT STATEMENT - HUMAN HEALTH Account owned and operated by: Nigeria Centre for Disease Control/World Bank Project TSA Account No.: 0020536561022 Depository Bank: Central Bank of Nigeria Address: Garki Abuja, Nigeria Related Credit: LOAN IDA NO. 59700 Currency: Naira Ref. NA IRA USD Opening balance 1 January 2023 42,004,300 98,026 Add: Transfer from Designated account - Loan IDA No. 59700 - NG A.1 7,859,873,453 12,593,206 Other Income Refund of unspent Advance 82,169,387.50 _ 7,984,047,141 12,691,232 Deduct: Disbursement within the period - Expenditure under Loan IDA No. 59700 - NG 6,983,454,284 11,982,475 6,983,454,284 11,982,475 Ending balance 31 August 2023 5.2 1,000,592,857 1,247,295 Page 17 REGIONAL DISEASE SURVEILLANCE SYSTEMS ENHANCEMENT (REDISSE) II PROJECT LOAN IDA NO. 59700 - NG PROJECT No: P159040 STATEMENT OF LOCAL ACCOUNT FOR THE PERIOD EIDED 31ST AUGUST, 2023 (in A &ira) APPEID( A.3 DESIGNATED SUB-ACCOUNT STATEMENT - ANIMAL HEALTH Account owned and operated by: FMARD REDISSE Project Animal Health Component Account No.: 0020103261172 Depository Bank: Central Bank of Nigeria Address: Garki Abuja, Nigeria Related Credit: LOAN IDA NO. 59700 Currency: Naira Ref. NAIRA USD Opening balance 1 January 2023 278,154,320 649,135 Add: Transfer from Designated account - Loan IDA No. 59700 - NG A.1 278,154,320 649,135 Deduct: Disbursement within the period - Expenditure under Loan IDA No. 59700 - NG 238,520,419 1,606,336 238,520,419 1,606,336 Ending balance 31 August 2023 5.2 39,633,901 49,406 Page I 18 REGIONAL DISEASE SURVEILLANCE SYSTEMS ENHANCEMENT (REDISSE) II PROJECT LOAN IDA NO. 59700 - NG PROJECT No: P159040 SUMPARY OFO SATEME1rOF EPENDTrLIRE3CSOE") WITHDRAWAL APPLICATI.ON FORM (WAF) FOR THE PERIOD ErDED 31ST A UAST, 2023 APPENDIX B Works, Withdrawal Withdrawal Goodcs, No. application Total WAF Total WAF Consulting Operating date services and Cost training NAIRA USD USD USD 001 27.04.2018 172,325,000.00 565,000.00 565,000.00 002 14.06.2018 1,616,500,000.00 5,300,000.00 5,300,000.00 003 27.06.2018 124,918,850.O80 409,57045 409,570.OO - Total WAF in 2018 1,913,743,850.00 6,274,570.00 6274r570.OO - 004 04.04.2019 1,035,018,497.35 3,393,5_3.27 3,082,997.47 310,505.80 TotalI WAFin 201L9 1035,018,497.35 3,393,503.27 3,082,997.47 310,505.80 0006 02.04.2020 1,619,666,974.24 4,492,834.88 4,315,135.02 177,699.86 0007 01.06.2020 126,920,001.14 334,105.51 334,105.51 - 0008 16.06.2020 3,785,250,000.00 10,500,000.00 10,500,000.00 - 0010 11.09.2020 1,648,066,979.20 4,342,736.00 4179,489.00 163,247.00 Trotali WA Fin 2020 7r,179,903r954.58 1L9,669,676.39 19,328,729.53 340,946.86 0011 26.02.2021 1,244,553,108.80 3,275,139.76 3,195,553.60 79,586.16 0013 21.07.2021 1,975,607,027.00 4,898,968.50 4,847,124.37 51,844.13 0014 23.08.2021 672,010,974.98 1,666,404.58 1,468,967.91 197,436.67 0015 07.09.2021 803,199,999.62 1,963,814.18 1,963,814.18 Total WAFin 2021 4,695,371,110.39 11,804,327.02 11,475,460.06 328,866.96 0016 26.05.2022 3,663,746.36 8,906.64 8,906.64 - 0019 09.06.2022 732,750.10 1,781.33 1,781.33 - 0020 09.06.2022 68,878,467.84 167,444.92 167,444.92 - 0021 13.06.2022 1,487,036,321.53 3,615,014.76 3,615,014.76 - 0022 15.08.2022 404,157,197.91 976,696.95 951,408.29 25,288.66 0023 17.08.2022 27,931,500.00 67,500.00 67,500.00 - 0024 26.08.2022 12,165,720.00 29,400.00 29,400.00 - 0025 29.08.2022 8804 12,1.08 2,127,627:31 2.0S4:532 7219 TotalO WAFin 2022 2,884,977,884.62 6,994,371.91 6 2 72,500O65 0026 18.11.2022 840,492,673.07 1,860,402.57 1,860,402.57 0027 23.03.2023 1,666,890,601.44 3,622,415.25 3,207,491.21 414,924.04 0031 18.05.2023 652,515,864.69 1,417,126.43 1,417,126.43 0039 10.07.2023 1,593,037,663.60 2,048,923.04 2,048,923.04 0040 06.08.2023 1,678,171,947.25 2,234,672.42 2,234,672.42 0041 27.08.2023 1,545,300,000.00 2,000,000.00 2,000,000.00 0042 27.08.2023 1,445,818,515.51 1,871,246.38 1,871,246.38 0043 27.08.2023 67,672,534.80 87,584.98 87,584.98 0048 14.09.2023 (441,008,683) (552,642) (552,642) 0044 14.12.2023 (1,944,175,000) (2,500,000) (2,500,000) 0028 14.08.2023 2,006,408.70 4,342.50 4,342.50 0029 14.08.2023 9,997,520.63 21,712.50 21,712.50 0030 19.04.2023 187,952,006.40 408,192.00 408,192.00 0032 02.06.2023 349,055,721.56 754,715 754,715.07 0034 25.06.2023 366,130,000.00 491,450 491,449.66 0035 25.06.2023 193,714,428.82 260,019 260,019.37 0036 25.06.2023 130,960,800.00 175,786 175,786.31 0037 25.06.2023 458,720,000.00 615,732 615,731.54 0038 06.07.2023 214,372,465.11 273,958 273,958.42 0046 28.11.2023 305,70,149.28 387,OO9.OO 387,OO9.OO TrotaI WAF i- 2023 9323,33,617.77 15,482,644.98 15,067,720.94 414,924.04 Cumulativ,e WA F 2018 - 2023 27,032,346,914.71 63,619,093.57 62,151,349.26 1,467,744.31 -Applicaton No. 001 was disbursement in 2018 directly to UNICEF as per agreement reached among WB, UNICEF and FGN. -Application No. 003 was disbursement in 2018 directly to WHO for $1,935,000 as per agreement reached among WB, WHO and FGN, but only $409,570 was utilised while $1,525,430 was refunded. -Application No. 0007 was disbursement made directly to Vangelion Multi-Global Limited for supply of PPE in the year 2020. -Application No. 0015 was disbursement made directly to National Vetenary Research Institute *Application No. 0016 was disbursement made directly to FIRS on Withholding Tax on Microsoft Office Licence purchsed -Application No. 0019 was disbursement made directly to FIRS on Stamp Duty on Microsoft Office Licence purchased -Application No. 0020 was disbursement made directly to Messrs Diro Systems for Microsoft Office Licence OApplication No. 0023 was disbursement made directly to Kaybel Investment Limited for procurement of 15 numbers of hospital ambulances for Human Health Sector. -Application No. 0024 was disbursement made directly to Kaybel Investment Limited for procurement of 7 numbers of hospital ambulances for Animal Health Sector. Application No. 0038 was disbursement made directly to Messrs Germaine Auto Center Ltd for procurement of 6 Units of 4WD DC Hilux vehicles Application No. 0046 was disbursement made directly to Messrs WHO for the procurement of Diptheria Atitoxin (ADT) & Erythromycine Injection FApplication No. 0037 was disbursement made directly to Messrs Pharm Assist Ltd for procurement of Lassa& Yellow Fever reagents 3Application NO. 0034 was disbursement made directly to Messrs Bluzav Global Enterprises Ltd for procurement of -380,000 Amp of Ribavirin IV 200mg/2ML *Application No. 0036 was disbursement made directly to Messrs Bodecode Technologies Ltd for procurement of 1548SNos of Samsung mobile phones Lot A -Application No. 0030 was disbursement made directly to Messrs Pivot Motors (DFC LO3ISTISTIK IC VE) for procurement of 9NOS of 4WD Double cabin pickup Hilux Page J19 1Application No. 0035 was disbursement made directly to Messrs Digital Communication Kont Ltd for procurement of 1453Nos Samsung tablets & ID Nos. -Application No. 0032 was disbursement made directly to Messrs Kamdli Computers for procurement of Laptops REGIONAL DISEASE SURVEILLANCE SYSTEMS ENHANCEMENT (REDISSE) II PROJECT LOAN IDA NO. 59700 - NG PROJECT No: P159040 RECONCILIATION STATEMENT FOR THE PERIOD ENDED 31ST A UGUST, 2023 (in A7ha and Dollar) A PPEID( C Reconciliation between World Bank's disbursement statements in USD and Loan IDA No. 59700 - NG account in USD according to the Statement of Financial Position as at 31 August 2023; SOE Withdrawal Schedule of Loan IDA No. 59700 - NG. Changes in Loan Changes in Loan IDA No. 59700 IDA No. 59700 (in NAIRA) (in USD) Original amount 27,450,000,000 90,000,000.00 Disbursed in 2018 1,913,743,850 6,274,570.00 Total disbursed in 2018 1,913,743,850 6,274,570.00 Withdrawal 004 1,035,018,497 3,393,503.27 Total disbursed in 2019 1,035,018,497 3,393,503.27 Withdrawal 0006 1,619,666,974 4,492,834.88 Withdrawal 0007 126,920,001 334,105.51 Withdrawal 0008 3,785,250,000 10,500,000.00 Withdrawal 0010 1,648,066,979 4,342,736.00 Total disbursed in 2020 7,179,903,955 19,669,676.39 Withdrawal 0011 1,244,553,109 3,275,139.76 Withdrawal 0013 1,975,607,027 4,898,968.50 Withdrawal 0014 672,010,975 1,666,404.58 Withdrawal 0015 803,200,000 1,963,814.18 Total disbursed in 2021 4,695,371,110 11,804,327.02 Withdrawal 0016 3,663,746 8,906.64 Withdrawal 0019 732,750 1,781.33 Withdrawal 0020 68,878,468 167,444.92 Withdrawal 0021 1,487,036,322 3,615,014.76 Withdrawal 0022 404,157,198 976,696.95 Withdrawal 0023 27,931,500 67,500.00 Withdrawal 0024 12,165,720 29,400.00 Withdrawal 0025 880,412,181 2,127,627.31 Total disbursed in 2022 2,884,977,885 6,994,371.91 Withdrawal 0026 840,492,673 1,860,403 Withdrawal 0027 1,666,890,601 3,622,415 Withdrawal 0031 652,515,865 1,417,126 Withdrawal 0039 1,593,037,664 2,048,923 Withdrawal 0040 1,678,171,947 2,234,672 Withdrawal 0041 1,545,300,000 2,000,000 Withdrawal 0042 1,445,818,516 1,871,246 Withdrawal 0043 67,672,535 87,585 Withdrawal 0048 (441,008,683) (552,642) Withdrawal 0044 (1,944,175,000) (2,500,000) Withdrawal 0028 2,006,409 4,343 Withdrawal 0029 9,997,521 21,713 Withdrawal 0030 187,952,006 408,192 Withdrawal 0032 349,055,722 754,715 Withdrawal 0034 366,130,000 491,450 Withdrawal 0035 193,714,429 260,019 Withdrawal 0036 130,960,800 175,786 Withdrawal 0037 458,720,000 615,732 Withdrawal 0038 214,372,465 273,958 Withdrawal 0046 305,706,149 387,009 9,323,331,618 15,482,645 Cumulative disbursements (2018 - 2023) 27,032,346,915 63,619,094 Calculated Undisbursed balance as at 31 August 2023 417,653,085 26,380,906 Page 120 REGIONAL DISEASE SURVEILLANCE SYSTEMS ENHANCEMENT (REDISSE) II PROJECT LOAN IDA NO. 59700 - NG PROJECT: P159040 EIGHT (8) MONTHS PERIOD ENDED 31IST AUGUST, 2023 SUMMARY OF FIXED ASSETS (in Naira) ANIMAL HUMAN HEALTH HEALTH - YEAR CATEGORY SECTOR SECTOR TOTAL N N N 2019 Transportation Equipment 122,620,000 18,225,000 140,845,000 2019 Plant & Machinery 17,685,000 - 17,685,000 2019 Office Equipment 17,515 880 - 17,515,880 2019 Furniture & Fittings 37,280,127 - 37280,127 2019 Laboratory Equipment 56,886,817 - 56,886,817 2020-2022 Transportation Equipment 447,919,063 - 447,919,063 2020-2022 Plant & Machinery 296,528,712 - 296,528,712 2020-2022 Office Equipment 197,195,138 - 197,195,138 2020-2022 Furniture & Fittings 956,750 - 956,750 2020-2022 Laboratory Equipment 107,000,000 - 107,000,000 2023 Transportation Equipment 199,955,936 245,160,000 445,115,936 2023 Plant & Machinery . 2023 Office Equipment 371,335,874 371,335,874 2023 Furniture & Fittings 2023 Laboratory Equipment 1,872,879,296 263,385,000 2,136,264,296 SOURCE: PROJECT FD(ED ASSETS REGISTER Page 21 REGIONAL DISEASE CONTROL SURVEILLANCE SYSTEM ENHANCEMENT REDISSE-NIGERIA PROJECT - PERIOD ENDED 31ST AUGUST, 2023 E DETAILS OF ACCOUNTS PAYABLE E.1 CONTRACTORS OUTSTANDING TERMINAL PAYMENTS ON INFECTIUOS DISEASE TREATMENT/ ISOLATION CENTRES STATUS POST PROJECT VALUEADDEDTAX WITHHOLDINGTAX STAMPDUIYTAX CLOSING PROPOSED GROSS OUISTANDING NET OUTSTANDING (VAT) DUE ON (Wh1T) DUE ON (SDT) DUE ON 31 COMPLETION TERMINAL PAYMENTS TERMINAL TERMINAL TERMINAL TERMINAL AUGUST, CONTRACTOR DATE (N) PAYMENTS (N) PAYMENTS (N PAYMENTS(N) PAYMENTS (N) 2023 outstanding as at audit closure on 1. AFRIDIATE VENTURE LIMITED 31stJuly, 2023 11,103,721.66 9,709,300.80 774,67826 516,45217 103,290.43 30.4,2024 HEADSTONE ENGINEERING 2. LIMITED 31s July, 2023 10,848,099.79 9,485,780.28 756,844.17 504,562,78 100,912.56 dfto 3. MEKCLINT NIGERIA LIMITED 31st July, 2023 10,872,232.58 9,506/882.45 758527.85 505,685.24 101,137.05 dtto OMUZA GLOBAL NIGERIA 4. LIMITED 31st July, 2023 11,654,084.56 10,190,548.36 813,07567 542,050.44 108,410.09 dtto 5, YAROSON PARTNERSHIP 31st July, 2023 9,877,936.00 8,637,451.01 689,15833 459,438.88 91,887.78 dtto 54,356,074.60 47,529,962,90 3,792,284.27 2,528,189.52 505,637.90 E.2 OUTSTANDING PAYMENTS DUE FOR SERVICES GROSS OUTSTANDING NATURE OF TERMINAL PAYMENTS PAYEE SERVICE (N) REMARKS 1. UHY MAAJI & Co External Audi 3,000,000 Accrued expense Being failed payment 2. DR ODIANOSAN EHIAKHAMEN Consutancy 646,100 for NFELTP Activities 3,646,100 Pad during the grace Sundry goods perid 1st septemberto E.3 Sundry Payabls and serves 794,202,337 31st December, 2023 E.4 TAXES DUE FOR REMITTANCE (N) Value Added Tax, Withholding Tax & Stamp Duty 64,992,717.34 Page 22