DIADEM CONSULTS INITIATIVE LTD/GTE MONITORING AND EVALUATION SUPPORT FOR NIGERIAN FOR WOMEN PROJECT (NFWP) Audited Project Financial Statements for the year ended 31st December, 2023 THE WORLD BANK MONITORING AND EVALUATION SUPPORT FOR NIGERIAN FOR WOMEN PROJECT (NFWP) GRANT NO: TF0B9785-NG PROJECT ID: P177941 DIADEM CONSULTS INITIATIVE LTD/GTE AUDITED PROJECT FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER, 2023 ABDULMALIK AHMED & CO. (Chartered Accountants) Suite 214 & 224, Anbeez Plaza, Opp. Old Corporate Affairs Commission, Ndola Square, Wuse Zone 5, Abuja, FCT. 0| DIADEM CONSULTS INITIATIVE LTD/GTE MONITORING AND EVALUATION SUPPORT FOR NIGERIAN FOR WOMEN PROJECT (NFWP) Audited Project Financial Statements for the year ended 31st December, 2023 TABLE OF CONTENTS Page Corporate Information 3 Report of the Independent Auditors 5 Statement of Financial Position 9 Statement of Financial Performance 10 Statement of Change in Equity/Net Assets 11 Statement of Cash Flows 12 Notes to the Financial Statements 13-16 Statement of Summary of Designated Accounts 17 Letter of Representation 18 1| DIADEM CONSULTS INITIATIVE LTD/GTE MONITORING AND EVALUATION SUPPORT FOR NIGERIAN FOR WOMEN PROJECT (NFWP) Audited Project Financial Statements for the year ended 31st December, 2023 ABBREVIATION ACRONYMS BCC Behaviour Change Communications CSO Civil Society Organization FGN Federal Government of Nigeria FM Financial Management Federal Ministry of Women Affairs and Social FMWASD Development FPCU Federal Project Coordination Unit GV Gender-based Violence GDP Gross Domestic Product Government Enterprise and Empowerment GEEP Program GenDi Gender Development Initiative IPF Investment Project Financing LGA Local Government Area M&E Monitoring and Evaluation NWEF Nigeria Women Empowerment Fund NFWP Nigeria for Women Project NGO Nongovernmental Organization PDO Project Development Objective PMIS PMIS Project Management Information System Sexual Exploitation and Abuse / Sexual SHE/SH Harassment SPCU State Project Coordination Unit WAG Women Affinity Group 2| DIADEM CONSULTS INITIATIVE LTD/GTE MONITORING AND EVALUATION SUPPORT FOR NIGERIAN FOR WOMEN PROJECT (NFWP) Audited Project Financial Statements for the year ended 31st December, 2023 CORPORATE INFORMATION Management Team: Dr. George Eluwa - Chief Executive Officer Bamidele Osibo - Technical Director Dr. Ehon Anthony - Snr. Technical Advisor, Research, Monitoring, Evaluation & Learning Chukwuebuka Nwokoro - MIS Advisor Uchechukwu Udaya - Project Accountant Obidiegwu Blessing - Procurement Officer Ayibawanate Obikwu - Human Resource and Safeguards Officer Esther Ogugua - Internal Auditor Donor The World Bank (International Bank for Reconstruction and Development / International Development Association) Recipient Diadem Consults Initiative Ltd/Gte Registered Address No 4, Ikole Street, Area 11, Garki, Abuja. Banker Zenith Bank Plc Auditors Abdulmalik Ahmed & Co. (Chartered Accountants) Suite 224, Anbeez Plaza, Ndola Crescent, Wuse Zone 5, Abuja. 3| DIADEM CONSULTS INITIATIVE LTD/GTE MONITORING AND EVALUATION SUPPORT FOR NIGERIAN FOR WOMEN PROJECT (NFWP) Audited Project Financial Statements for the year ended 31st December, 2023 PROJECT OVERVIEW Monitoring and Evaluation Support for Nigerian for Women Project (NFWP) is a Project funded by World Bank and implemented by Diadem Consults Initiative Ltd/Gte with the aim of improving quality of monitoring and evaluation of projects under Nigerian for Women Project. The funding is a grant from World Bank IDA. Nigerian for Women Project (NFWP) is currently being implemented in three Local Government Areas from each of the six States of Abia, Akwa Ibom, Ogun, Niger, Kebbi and Taraba in addition to Federal Capital Territory. This project is being implemented in these locations based on the agreed criteria with the possibility of onboarding more States to the program. The lack of monitoring and evaluation capacity and quality within the coverage of this project necessitated this grant from the World Bank. Components of the Project Monitoring and Evaluation Support for Nigerian for Women Project is made up of four clear project components. The project components are: Component 1: M&E System Development and Support This component supports the redevelopment of the NFWP M&E system into a robust and functional M&E system that integrates into the NFWP PMIS and other digital solutions under NFWP. Component 2: Iterative Beneficiary Monitoring and Responsive Feedback Mechanism This component supports the development, implementation, and eventual handover of an improved Iterative Beneficiary Monitoring (IBM) system and Responsive Feedback Mechanism (RFM) across all NFWP States. Component 3: Capacity Building, Knowledge Management, Sharing and Learning This component will build the capacity of NFWP M&E and PMIS teams at the FPCU and SPCUs, as well as other stakeholders driving the women economic empowerment agenda, to monitor processes, use relevant data collection tools and frameworks for collection of quantitative and qualitative data. Component 4: Project Management This is a program of support to include provision of operating costs and training for the purpose of project implementation. 4| DIADEM CONSULTS INITIATIVE LTD/GTE MONITORING AND EVALUATION SUPPORT FOR NIGERIAN FOR WOMEN PROJECT (NFWP) Audited Project Financial Statements for the year ended 31st December, 2023 INDEPENDENT AUDITORS’ REPORT TO MANAGEMENT OF DIADEM CONSULTS INITIATIVE LTD/GTE MONITORING AND EVALUATION SUPPORT FOR NIGERIA FOR WOMEN PROJECT (NFWP) - GRANT NO: TF0B9785-NG Opinion We have audited the accompanying Project Financial Statements of Diadem Consults Initiative Ltd/Gte Monitoring and Evaluation Support for Nigeria for Women Project (NFWP) for the year ended 31st December, 2023 which comprise the Statement of Financial Position, Statement of Surplus or Deficit, Statement of Changes in Equity/Net Assets, Statement of Cash Flow, Notes to the Project Financial Statements, a summary of significant accounting policies and other explanatory information set out on pages 8 to 16. This Project is funded by International Development Association - World Bank. In our opinion, the Project Financial Statements present fairly, in all material respect, the financial position of Diadem Consults Initiative Ltd/Gte Monitoring and Evaluation Support for Nigeria for Women Project (NFWP) as at 31st December, 2023 and are in compliance with the International Financial Reporting Standards (IFRS). 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 International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants (IESBA Code) together with the ethical requirements that are relevant to our audit of the Project Financial Statements in Nigeria and we have fulfilled our 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. Key Audit Matters Key Audit Matters are those matters that, in our professional judgment, were of most significance in our audit of the Project 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 thereof. 5| DIADEM CONSULTS INITIATIVE LTD/GTE MONITORING AND EVALUATION SUPPORT FOR NIGERIAN FOR WOMEN PROJECT (NFWP) Audited Project Financial Statements for the year ended 31st December, 2023 Other Matters We consider and report to you on the following matters. We confirm that: i. We have obtained all the information and explanation which to the best of our knowledge and belief were necessary for the purpose of our audit. ii. All funds have been used in accordance with the conditions of the grant agreement. iii. Goods and services financed have been procured in accordance with the grant agreement and in accordance with the Bank's rules and procedures. iv. Appropriate supporting documents, records and books of accounts relating to all Project activities have been kept. A clear linkage exists between the books of account and the financial statements presented to the Bank. v. The Designated Account have been used and have been maintained in accordance with the provisions of the grant agreement and in accordance with the Bank's disbursement rules and procedures. vi. We have carried out a comprehensive assessment of the adequacy and effectiveness of the accounting and overall internal control system to monitor expenditure and other financial transactions and have ensured safe custody of the Project's financial assets and that they are used for the intended purposes. vii. The advances for training and other activities were duly retired during the year under review. Responsibilities of Project Management for the Project Financial Statements Diadem Consults Initiative Ltd/Gte is responsible for the preparation and fair presentation of these Project Financial Statements in accordance with Financial Reporting Council of Nigeria Act 2011 and in the manner required by IFRS. These responsibilities include selection and application of appropriate accounting policies, designing, implementing and maintaining internal control relevant to the preparation of Project Financial Statements that are free from material misstatement, whether due to fraud or error, as well as acceptable documentation for all financial transactions. In preparing the Project Financial Statements, Diadem Consults Initiative Ltd/Gte management is responsible for assessing the project's ability to continue as a going concern, disclosing, as applicable, matters related to going concern basis of accounting unless the management either intends to liquidate the Project or to cease operations, or has no realistic alternative but to do so. Auditor's Responsibilities for the Audit of the Project Financial Statements Our objectives are to obtain reasonable assurance about whether the Project Financial Statements as a whole are free from material misstatement, whether due to fraud or error, and to issue our auditor's report that includes our opinion. Reasonable assurance is high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatement can arise from fraud or error and are considered material if, individually or in the aggregate they could reasonably be expected 6| DIADEM CONSULTS INITIATIVE LTD/GTE MONITORING AND EVALUATION SUPPORT FOR NIGERIAN FOR WOMEN PROJECT (NFWP) Audited Project Financial Statements for the year ended 31st December, 2023 to influence the economic decision of users taken on the basis of these Project Financial Statements. As part of an audit in accordance with ISAs, we exercised our professional judgment and maintained professional scepticism throughout the audit as indicated below: 1. Identified and assessed the risk of material misstatement of the Financial Statements, whether due to fraud or error, designed and performed an audit procedure responsive to those risks and obtained audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. 2. Obtained an understanding of internal control 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 Project's internal control. 3. Evaluated the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. 4. Concluded on the appropriateness of the use of going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or condition that may cast significant doubt on the Project's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the Project Financial Statements or, if such disclosure is inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future event or condition may cause the Project to cease to continue as a going concern. 5. Evaluated the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. We communicated with 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 identified during our audit. We also provide the management with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence and where applicable, related safeguards. From the matters communicated with the management, we determined those matters that were of most significance in the audit of the Project Financial Statements of the current period and these are therefore the Key Audit Matters. We described these matters in our Auditor's Report, unless Law or Regulation preclude public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. 7| DIADEM CONSULTS INITIATIVE LTD/GTE MONITORING AND EVALUATION SUPPORT FOR NIGERIAN FOR WOMEN PROJECT (NFWP) Audited Project Financial Statements for the year ended 31st December, 2023 8| DIADEM CONSULTS INITIATIVE LTD/GTE MONITORING AND EVALUATION SUPPORT FOR NIGERIAN FOR WOMEN PROJECT (NFWP) Audited Project Financial Statements for the year ended 31st December, 2023 STATEMENT OF FINANCIAL POSITION AS AT 31ST DECEMBER, 2023 2023 Notes NGN Assets Current Assets Cash and Cash Equivalents 2 8,636,104 Receivables 3 320 8,636,424 Total Assets 8,636,424 Liabilities & Equity/Net Assets Liabilities Current Liabilities Payables 4 146,700 Total Current Liabilities 146,700 Equity/Net Assets Diadem Capital Contribution 5 154 Accumulated Fund 8,489,570 Total Equity/Net Assets 8,489,724 Total Liabilities & Equity/Net Assets 8,636,424 The Statement of Accounting Policies on Pages 13 to 14 and notes on pages 15 to 16 form an integral part of these Project Financial Statements. __________24/05/2024__________________ Chief Executive Officer Signature & Date _____________24/05/2024_____ Project Accountant Signature & Date 9| DIADEM CONSULTS INITIATIVE LTD/GTE MONITORING AND EVALUATION SUPPORT FOR NIGERIAN FOR WOMEN PROJECT (NFWP) Audited Project Financial Statements for the year ended 31st December, 2023 STATEMENT OF SURPLUS OR DEFICIT FOR THE YEAR ENDED 31ST DECEMBER, 2023 2023 Note NGN Revenue Grant 6 230,000,000 Other income 7 4,339,130 Total Revenue 234,339,130 Expenditures M & E System Development and Support 8.1 (171,955,959) Iterative Beneficiary Monitoring (IBM) and Responsive Feedback Mechanism (RFM) 8.2 (22,197,724) Knowledge Management, Sharing and Learning 8.3 (20,297,661) Project Management (Operating Costs) 8.4 (11,398,216) Total Expenditure (225,849,560) Surplus for the year 8,489,570 The Statement of Accounting Policies on Pages 13 to 14 and notes on Pages 15 to 16 Form an integral part of this Project Financial Statement. 10 | DIADEM CONSULTS INITIATIVE LTD/GTE MONITORING AND EVALUATION SUPPORT FOR NIGERIAN FOR WOMEN PROJECT (NFWP) Audited Project Financial Statements for the year ended 31st December, 2023 STATEMENT OF CHANGE IN EQUITY/NET ASSETS FOR THE PERIOD ENDED 31ST DECEMBER, 2023 Diadem Capital Accumulated Contribution Fund Total 2023 NGN NGN NGN Capital Contribution 154 - 154 Surplus/(Deficit) for the year - 8,489,570 8,489,570 154 8,489,570 8,489,724 The Statement of Accounting Policies on Pages 13 to 14 and notes on Pages 15 to 16 Form an integral part of this Project Financial Statement. 11 | DIADEM CONSULTS INITIATIVE LTD/GTE MONITORING AND EVALUATION SUPPORT FOR NIGERIAN FOR WOMEN PROJECT (NFWP) Audited Project Financial Statements for the year ended 31st December, 2023 STATEMENT OF CASHFLOW AS AT 31ST DECEMBER, 2023 Notes 2023 NGN Cash flow from Operating Activities Suplus for the year 8,489,570 Changes in working Capital: Increase in receivable (320) Increase in payable 146,700 Net Cash used in Operating activities 8,635,950 Cash flow from Financing Activities Diadem Capital Contribution 154 Net Cash used in Financing Activities 154 Net increase in Cash and Cash Equivalent 8,636,104 Cash and Cash Equivalent as at 1st January - Cash and Cash Equivalent as at 31st December 2 8,636,104 The Statement of Accounting Policies on Pages 13 to 14 and notes on Pages 15 to 16 Form an integral part of this Project Financial Statement. 12 | DIADEM CONSULTS INITIATIVE LTD/GTE MONITORING AND EVALUATION SUPPORT FOR NIGERIAN FOR WOMEN PROJECT (NFWP) Audited Project Financial Statements for the year ended 31st December, 2023 NOTES TO THE PROJECT FINANCIAL STATEMENT FOR THE YEAR ENDED 31ST DECEMBER, 2023 1. Significant Accounting Policies The accounting policies, set out below have been applied consistently throughout the period covered by these financial statements. 1.1 Reporting Entity Diadem Consults Initiative Ltd/Gte - Monitoring and Evaluation Support for Nigeria for Women Project (NFWP) is IDA World Bank funded project which aims at improving the capacity and quality of monitoring and evaluation of Nigeria for Women Project in Federal Capital Territory (FCT) and six States (Abia, Akwa Ibom, Ogun, Niger, Kebbi and Taraba). 1.2 Statement of Compliance The Project financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS). 1.3 Basis of Preparation The Project Financial Statements have been prepared in accordance with the International Financial Reporting Standards (IFRS) promulgated by IASB. The Project Financial Statements comprise Statement of Financial Position, Statement of Surplus or Deficit, Statement of Changes in Equity/Net Assets, Statement of Cashflow and the related Notes. 1.4 Functional and Presentation Currency Items included in these Financial Statements are measured using the currency of the primary economic environment in which the project operates (‘the functional currency'), therefore, these financial statements are presented in the Nigerian Naira (NGN), which is the project's functional currency. 1.5 Use of Estimates and Judgments The preparation of the financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of transactions at the date of the project financial statements. The estimates and assumptions are based on management's best knowledge of current events, actions; historical experience and various other factors that are believed to be reasonable under the circumstance, the result of which form the basis of making the judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual 'results may differ from these estimates. Estimates and underlying- assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. 13 | DIADEM CONSULTS INITIATIVE LTD/GTE MONITORING AND EVALUATION SUPPORT FOR NIGERIAN FOR WOMEN PROJECT (NFWP) Audited Project Financial Statements for the year ended 31st December, 2023 1.6 Going Concern The Project management has a reasonable expectation that Diadem Consults Initiative Ltd/Gte has adequate resources to continue in operational existence for another financial year. The project continues to adopt the going concern basis in preparing its financial statements. 1.7 Foreign Currency Transactions Foreign currency transactions are translated into Naira using the exchange rates prevailing at the dates of the transactions or valuations where items are re-measured. Foreign currency balances as at the reporting date are converted into Naira at the exchange rate ruling at the reporting date. Foreign exchange gains and losses 'resulting from the settlement of such transactions and from the translation at year-end exchange rate of monetary assets and liabilities denominated in foreign currencies are recognized in the Statement of Financial Performance. Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are translated to the functional currency at the exchange rate at that date that the fair value was determined. Non-monetary items in a foreign currency that are measured in terms of historical cost are translated using the exchange rate at the date of the transaction. Foreign currency differences arising on retranslation are recognized in the Statement of Surplus or Deficit. 1.8 Property, Plant and Equipment Items of property, plant and equipment are stated at cost. Cost includes expenditures that are directly attributable to the acquisition of the asset. Depreciation is not charged on items of property, plant and equipment and PPE are written off in the year of purchase. 1.9 Grants Grants are amounts received from IDA (World Bank) in line with the Grant Agreement and they are recognised when received. 1.10 Taxation Diadem Consults Initiative Ltd/Gte is not liable to pay income tax. 1.11 Cash and Cash Equivalents For the purpose of Statement of Cashflow, cash and cash equivalents comprise cash with banks in Nigeria and cash held as imprest in the custody of the Project. 14 | DIADEM CONSULTS INITIATIVE LTD/GTE MONITORING AND EVALUATION SUPPORT FOR NIGERIAN FOR WOMEN PROJECT (NFWP) Audited Project Financial Statements for the year ended 31st December, 2023 NOTES TO THE AUDITED PROJECT FINANCIAL STATEMENT FOR THE YEAR ENDED 31ST DECEMBER 2023 Note 2023 NGN 2 Cash & Cash Equivalents: Designated Account 796,874 Draw-Down Account 7,839,231 8,636,104 3 Receivables Staff Advance 320 320 4 Payables Withholding Tax (WHT) 146,700 146,700 5 Diadem Capital Contribution Opening Capital 154 154 This amount represent amount contributed by Diadem which was used to open the project's bank account. 6 Grant Grant received from IDA 230,000,000 230,000,000 7 Other Income Exchange Gain 4,339,130 4,339,130 8 Expenditures 8.1 M & E System Development and Support ICT Equipment:Procurement 4,852,393 ICT Equipment:Office 365 (Licensed Soft ware) 100,000 Communication & Office Equipment 15,460,816 Non-Consultancy Services:Conduct of Monitoring & Evaluation System Assessment (MESA) 12,097,621 Non-Consultancy Services:Continuous supportive monitoring to FPCU and SPCUs 2,111,889 Non-Consultancy Services:Conduct of MESSA Dissemination QIP Worksop 4,129,600 Consultancy Services:Project Consultants 133,203,640 ` 171,955,959 15 | DIADEM CONSULTS INITIATIVE LTD/GTE MONITORING AND EVALUATION SUPPORT FOR NIGERIAN FOR WOMEN PROJECT (NFWP) Audited Project Financial Statements for the year ended 31st December, 2023 NOTES TO THE AUDITED PROJECT FINANCIAL STATEMENT FOR THE YEAR ENDED 31ST DECEMBER 2023 Note 2023 NGN Iterative Beneficiary Monitoring (IBM) and Responsive 8.2 Feedback Mechanism (RFM) Purchase of Tablets and Computer Accessories 2,790,000 Set up of IBM System (Programming and Maintenance) 14,020,000 Training 5,387,724 ` 22,197,724 8.3 Knowledge Management, Sharing and Learning Consultancy Services 20,297,661 ` 20,297,661 8.4 Proect Management (Operating Cost) Operating Cost 991,206 Operating Cost for Interviwers 2,992,500 Operating Cost for Supervisors 356,250 Operating Cost:Administrative Fee (7%) 6,509,795 Bank Charges 548,465 11,398,216 16 | DIADEM CONSULTS INITIATIVE LTD/GTE MONITORING AND EVALUATION SUPPORT FOR NIGERIAN FOR WOMEN PROJECT (NFWP) Audited Project Financial Statements for the year ended 31st December, 2023 STATEMENT OF SUMMARY OF THE DESIGNATED ACCOUNT FOR THE YEAR ENDED 31ST DECEMBER, 2023 DESCRIPTION 2023 2023 USD NGN Balance at 1/1/2023 - - IDA Grant 500,000 230,000,000 Interest Earned - - Total Receipt From IDA/Others 500,000 230,000,000 - Transferred to Draw Down Account (430,000) (201,750,000) Project Consultant (57,834) (26,603,640) Statistical Software (10,453) (4,852,393) Bank Charges (827) (336,223) 886 (3,542,256) Exchange Gain for the year - 4,339,130 Balance at 31/12/2023 ($886.4 @ N899) 886 796,874 17 | DIADEM CONSULTS INITIATIVE LTD/GTE MONITORING AND EVALUATION SUPPORT FOR NIGERIAN FOR WOMEN PROJECT (NFWP) Audited Project Financial Statements for the year ended 31st December, 2023 27th May, 2024. Abdulmalik Ahmed & Co., Chartered Accountants, Suite 214 & 224 Anbeez Plaza, Opp. former CAC, Wuse Zone 5, Abuja. Dear Sirs, DIADEM CONSULTS INITIATIVE LTD/GTE LETTER OF REPRESENTATION This letter of representation is provided in connection with your audit of the Diadem Consults Initiative Ltd/Gte for the year ended 31st December, 2023. Your audit is conducted for the purpose of expressing an opinion as to whether the Project Financial Statements are presented fairly, in all material respects, in accordance with International Standards on Auditing. We confirm, to the best of our knowledge, that the Project Financial Statement encompasses all transactions and receipts, is accurate and complete in every respect and that all Grant Agreement, including those beyond the scope of the audit, have been met. Preparation and Fair Presentation of Financial Statements We acknowledge that the management is responsible for the preparation and fair presentation of the Project financial statement in accordance with local and International Accounting Standards. This responsibility includes designing, implementing, and maintaining internal control relevant to the preparation and presentation of the Project financial Statement that is free from material misstatements, whether due to fraud or error. The Project financial statements have been approved by the management and we believe they are fairly presented in accordance with local and International Accounting Standards. Internal Controls We acknowledge our responsibility for the implementation and operations of accounting and internal control systems that are designed to prevent and detect fraud and error. There have been no irregularities involving management or employees who have a significant role in the accounting and internal control systems or that could have a material effect on the Project financial Statement. 18 | DIADEM CONSULTS INITIATIVE LTD/GTE MONITORING AND EVALUATION SUPPORT FOR NIGERIAN FOR WOMEN PROJECT (NFWP) Audited Project Financial Statements for the year ended 31st December, 2023 Accounting Policies We confirm that we have reviewed the accounting policies and, having regard to the possible alternative policies, our selection and application of accounting policies used for the preparation and presentation of the Project financial Statement is appropriate in the project and particular circumstances to give a fair presentation. The accounting principles and policies have been followed consistently throughout the reporting year unless separately disclosed in the financial statements. Disclosure of Information We have made available to you all:  Financial records and related data.  Other information relevant to the audit. Fraud We have disclosed to you: i) The result of our assessment of the risk that the Project financial Statement may be materially misstated as a result of fraud. ii) Our knowledge of fraud or suspected fraud affecting the Project that may involve management, employees who have significant roles in internal control or others where the fraud could have a material effect on the Project financial Statement and iii) Our knowledge of any allegations of fraud, or suspected fraud, affecting the organization’s Project financial Statement communicated by employees, former employees, analysts, regulators, or others. Compliance with Laws and Regulations We have disclosed to you all known actual or possible non-compliance with laws and regulations whose effects should be considered when preparing the Project financial Statement. Project Assets All Project assets have been recorded and properly disclosed in the Project Financial Statements. Budget and Actual The Project Financial Statement includes all the budget and actual expenditure. We have recorded or disclosed, as appropriate, all formal or informal arrangements with financial institutions involving compensating balances or other arrangements involving restrictions on cash balances and line of credit or similar arrangements. 19 | DIADEM CONSULTS INITIATIVE LTD/GTE MONITORING AND EVALUATION SUPPORT FOR NIGERIAN FOR WOMEN PROJECT (NFWP) Audited Project Financial Statements for the year ended 31st December, 2023 All issued financial guarantee contracts, including those issued in relation to related parties, are appropriately accounted for, and disclosed. Employee Benefits All significant post-employment benefits that the organization is committed to provide, including any arrangements that are statutory, contractual, or implicit in the organization’s actions, wherever they arise, whether funded or unfunded, approved, or unapproved, have been identified and properly accounted for and/or disclosed. Litigation and Claims We are not aware of any pending or threatened litigation, proceedings, hearings, or claims negotiations which may result in a material misstatement of the Project financial statement. IDA Grant We have properly recorded the IDA Grant received and its source in the Project Financial Statement. Misstatements Detected During the Audit We confirm that the Project Financial Statements are free of material misstatements, including omissions. We believe the effect of the uncorrected Project financial Statement misstatements aggregated by you is immaterial, both individually and in aggregate, to the Project financial Statement taken as a whole. Yours faithfully, ________________________ Dr. George Eluwa Chief Executive Officer For: Diadem Consults Initiative Ltd/Gte 20 |