Office of the Auditor General of Rwanda a www.oag.gov.rw STUNTING PREVENTION AND REDUCTION PROJECT (SPRP) AUDIT REPORT ON FINANCIAL STATEMENTS For the year ended 30 June 2020 OAG Core Values Integrity Innovation .In public Interest ObjIlctivity Profegsio.nalism STUNTING PREVENTION AND REDUCTION PROJECT (SPRP) AUDIT REPORT ON FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020 TABLE OF CONTENTS 1. IN T R O D U C T IO N .............................................................................................................2 2. STATEMENT OF MANAGEMENT RESPONSIBILITIES ............................................9 3. REPORT OF THE AUDITOR GENERAL ....................................................................10 4. CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2 0 2 0 ................................................................................................................................. 13 D ETA ILED A U D IT FIN D IN G S.............................................................................................29 5. REVIEW OF INTERNAL CONTROL SYSTEM...........................................................30 Office of the Auditor General of State Finances 1 STUNTING PREVENTION AND REDUCTION PROJECT (SPRP) AUDIT REPORT ON FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020 1. INTRODUCTION 1.1. Background The Government of Rwanda and the World Bank, in Collaboration with a multi- sectoral government counterpart team has developed an integrated program in 2018 to combat chronic malnutrition which is based on global evidence, with a focus on high stunting districts, vulnerable populations and the critical 1,000 days beyond which stunting becomes largely irreversible. The project was formed under financing Agreement (Credit Number 61870-RW) signed between the Government of Rwanda and the International Development Association (IDA) on 07 March 2018 to finance the Stunting Prevention and Reduction Project (SPRP). The project is expected to close its activities by 30 April 2023. Rwanda Biomedical Centre (RBC) is the implementing budget agency of the Project. Thirteen (13) Districts have been selected to run the Project activities. Those are Kayonza, Bugesera, Ruhango, Huye, Nyamagabe, Rubavu, Rutsiro, Karongi, Nyabihu, Rusizi, Nyaruguru, Ngororero and Gakenke Districts. 1.2. Project Information Project Start Date The project approval date is 28 February 2018 The date of signing the funding agreement is 7th March 2018 The roject effectiveness date is 05th June 2018 Implementing agency The implementing Budget Agency is Rwanda Biomedical Centre ...B C . ... ............ ...... Project sponsors International Development Agency (IDA) Power of Nutrition Trust Fund (PON) Global Financing Facility (GFF) Project end date The project completion date is 30th April 2023 The project last disbursement date is 31st August 2023 1.3. Project Overview Project title Stunting Prevention and Reduction Project (SPRP) Credit Number 61870-RW Grant Number A6567 & A6783 Line Ministry of the i Ministry of Health (MoH) Program ...... .. Strategic goals of the To contribute to the reduction in the stunting rate among children project under five years of age (with a focus on those under two) in the targeted districts. Project Scope and The project will support the following components: Components Component 1: Prevention of Stunting at Community & Household Levels This component supports the Government to improve awareness of stunting, and deliver harmonized behaviour change messages at all levels (i.e. national, local government, and household) and across Office of the Auditor General of State Finances 2 STUNTING PREVENTION AND REDUCTION PROJECT (SPRP) AUDIT REPORT ON FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020 several key sectors (i.e. health, social protection, agriculture, water and sanitation). It supports the Ministry of Health (MoH)/RBC to implement, monitor and evaluate the revamped national, multil sectoral behavioral change communication strategy, building on work funded by USAID and the European Union. This component boosts the productivity and performance of Comnunity Health Workers (CHWs) and explores options for professionalizing them. CHWs benefit from enhanced training on a revised curriculum focused on reinforcing household behaviour change on complementary feeding, early childhood stimulation, and hygiene; improved supportive supervision and mentorship; innovative technologies to enhance their effectiveness and strengthen links to the health system. They are incentivized through the PBF scheme; and benefit from strengthening of the commodity supply chain. These interventions, supported at scale by both the World Bank and other partners, are critical for enhancing performance of CHWs and driving the program's success. CHWs continue to play a role in raising awareness about stunting, carrying out growth promotion activities, and sensitizing Early Childhood Development (ECD) caregivers and communities on the importance of proper child growth. Component 2: HighElimpact Health and Nutrition Services To address key gaps in service delivery, health centers in the targeted districts are supported and incentivized to improve utilization and coverage of an enhanced package of highlimpact nutrition and health interventions. These interventions include those identified in the Government's Acceleration of Reduction of Stunting Strategy which are in line with the 2008/2013 Lancet recommendations: (i) Height monitoring and growth promotion and effective tracking of faltering children, early initiation and exclusive breast feeding, deworming, micronutrient supplementation (i.e. Vitamin A supplementation; therapeutic zinc supplementation with Oral Rehydration Solution (ORS); multiple micronutrient supplement powders); and (ii) Critical nutrition and health interventions for women (i.e. four antenatal care visits, four postnatal care, iron/folic acid supplementation, family planning, counselling on child care, complementary feeding and hygiene). The project also supports health facilities with training, information technologies, and logistical support from the national level. To this end, the support is being provided for the design and roll out of new information technologies (i.e. twoO]way messaging system using smart phones and tablets) and interactive systems for Office of the Auditor General of State Finances 3 STUNTING PREVENTION AND REDUCTION PROJECT (SPRP) AUDIT REPORT ON FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020 tracking every pregnant woman and child, ensuring prompt identification of growth faltering and effective response at the facility and household levels. Component 3: Monitoring and Evaluation (M&E) and Project Management This component supports M&E, and project management. To this end, it supports the following activities: (i) Conducting rigorous evaluations to draw timely lessons on what works, how much it costs, and how it can be scaled up; (ii) Facilitating learning and knowledge sharing at both the community and district level; and (iii) Supervising, coordinating and providing oversight. As participating districts scale up interventions, the project will support learning and knowledge sharing. Component 4: Contingency Emergency Response Component (CERC) This component was included to support a rapid response to disease outbreaks, as per the Government's request to the Bank to access the Pandemic Emergency Financing Facility. The objective of this component is to improve Rwanda's response capacity in the event of an emergency, following the procedures governed by Bank Policy on Investment Project Financing, paragraphs 12-14, regarding "Projects in Situations of Urgent Need of Assistance or Capacity Constraints." There is a moderate to high probability that during the life of the project the country may experience a natural or man-made disaster or crisis, including a disease outbreak of public health importance or other health emergency, which has caused, or is likely to imminently cause a major adverse economic and/or social impact. In anticipation of such an event, the CERC provides Rwanda with rapid reallocation of undisbursed funds from other project components following an emergency to address immediate financing needs to mitigate, respond and recover from the potential harmful consequences arising from such emergency. The availability of immediate financing is critically important in: (a) supporting the first response; (b) helping to coordinate the early recovery phase; and (c) Bridging the gap to longer term recovery and reconstruction phases. Specific achievement The SPRP key achievements as at 31 August 2020 are: of strategic Communication Campaigns - guided by the approved Social goals/outputs of the Behavior Communication Change (SBCC) Strategy (2019-2024), projects RBC in collaboration with National Early Childhood Development 2 Program (NECDP) conducted intensive mass media on nutrition, Office of the Auditor General of State Finances 4 STUNTING PREVENTION AND REDUCTION PROJECT (SPRP) AUDIT REPORT ON FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020 hygiene practices and stunting awareness, promotion of first 1000 days of children life through various channels including (i) 31,600 Information, Education and Communication (IEC) materials sessions and 45,000 booklets and posted at health facility, (ii) several radio spots and short videos were aired in 120 days, (iii) 25 live talk shows on Radio and TV (Imboni, Intambwe, Menya wirinde), (iv) 140 daily health tips (v) 180 Disc Jockey (DJ) mentions broadcasted in 90 days, (vi) comic series (Waruziko) broadcasted in 90 days, (vii) banners (80 street banners, 7,000 posters) and (viii) community dialogues/outreaches mobilized 95,000 -110,000 people in 13 districts about antenatal care, immunization, family planning , Fortified Blended Food (FBF), breastfeeding , 1,000 days of child life and hygiene practices as well as (ix) cooking demonstration sessions ( for example women of Rubavu and Bugesera Districts demonstrated the improvement in prevention of malnutrition during pregnancy and breastfeeding period from the acquired knowledge). CHW Program - the reform of the CHWs included the review and integration of the curriculums, training guidelines as well as training modules. Training on Integrated Community Health Package for CHWs was completed and they are currently undergoing training on integrated ECD standard services. As result, CHWs assessment in piloting phase proved 92% of assessed CHWs to be competent. Regarding the CHWs strategy, the studies are underway aiming at developing a performant CHWs program model to improve the financial sustainability of the CHWs cooperative. Home-based ECD models and Wash Interventions - 20,078 Home-based ECDs were set in February 2020 following GoR policy of 3 ECDs per village. At least 6,000 were established under SPRP support. Additionally, 6,464 households in 13 districts including Home Based ECDs and extremely poor households have access to improved latrine structures along water filters and safe drinking water storage containers; 949 households (only ECDs) in Nyaruguru and Gakenke have home utensils and food storage containers and 168 water tanks were distributed to ECD Centers (one for each sector in 13 districts which receives high number of children has received a water tank). Home Based ECDS have also received 2 sitting mats, 2 registers, 2 children books for each ECD. Regarding the stunting visualization for growth monitoring at community level, 507 Health Centers, 14,816 villages have also received length mats. District multi-sectorial response - District Planning for Eliminating Malnutrition (DPEM) financing quarterly transfers were made to 13 districts. Achievements by districts include among others: Office of the Auditor General of State Finances 5 STUNTING PREVENTION AND REDUCTION PROJECT (SPRP) AUDIT REPORT ON FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020 (i) 2,768 ECDs supported with food and porridge, (ii) 103,480 children benefited from these food and porridge (iii) 134,229 plants trees were distributed, (iv) 25,856 vulnerable households in Ubuehe category 1 (Ul) received fruit threes. Fortified Blended Food (FBF) procurement and distributions - 4,142.68 tons of FBF were distributed to Districts (1 ton per district) up to August 2020 and procurement process of motorbikes (1 per district) to facilitate Fortified Blended Food (FBF) monitoring and evaluation was completed. Supply Chain & Delivery Platforms - Currently, CHWs are conducting stunting prevention at community and monitor maternal and child health via various technologies introduced such as revamping Nutritional Applications for reporting SPRP indicators. Also various nutritional commodities and drugs for maternal and child health were distributed to Health Facilities such as (a) iron/Hg/RPR, (b) Urine Pregnancy Test Kits, (c) Acid Folic and Ferrous Sulphate, (d) MICROCUVETTES HB 201 Hemoglobin, (e) MICROCUVETTES HB 301 Hemoglobin and Gloves for CHWs. Clinical and Community Performance Based Financing and Staff Training - All staff in health facilities under SPRP support were trained on the project performance indicators and activities. Accordingly clinical and community PBF were paid for two fiscal years (2018/2019 and 2019/2020) on quarterly basis to remunerate achievements made on each and every indicator. Contingency Emergency Response Component (CERC) - the following progress were made including (i) 19 points of entries are under rehabilitation across 10 districts and 2 operational vehicles for sample transportation, emergency travels, outreach and rapid response activities were procured and are operational. The procurement process for establishing and equipping isolation facilities in 8 hospitals is complete. Child Score Card - They are tools developed to strengthen monitoring of all interventions received or missed by pregnant women and children under 2 years of age at community level. After being successfully tested in Nyabihu from November 2019, the training of implementers was conducted in 5 districts including (Nyabihu, Rutsiro, Gakenke, Nyaruguru and Kayonza). Office of the Auditor General of State Finances 6 STUNTING PREVENTION AND REDUCTION PROJECT (SPRP) AUDIT REPORT ON FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020 1.4. Project cost and financing The project is estimated to Cost USD 55 million. It is Co-financed by IDA credit of USD 25; a Multi-Donor Trust Fund grant (MDTF Grant Number A6567) of USD 20 million and a Global Financing Facility Grant (GFF Grant Number A6783) of USD 10 million as analysed in the tables I and 2 below. Table 1: Expected disbursement per project component and development partner(s) Projeet Components Project cost IDA Trust Trust Financing Funds: Funds MDTF: GFF USD USDI USD USD (illion) million) (million) million) Component 1: Prevention of Stunting 35.0 24.0 3.0 8.0 at Community and Household Level _ Communication Campaigns -4.0 1 J 3.0 [ECHW Program and communityEled 6.5 2 0 - 4.5 approaches EHome Dbased ECD models 8.2 i 81 - 1 WAsH Interventions 4.5 45 [ District multi Esectoral response 5.5 2.0 - 3.5 _ Community PBF 6.3 6.3 Component 2: High Oimpact Health 14.5 - 14.5 - and Nutrition Services . . . lSupply Chain & Staff Training -i -11.0 EFacility PBF 3.5 I .- 3. I - Component 3: M&E, and. Projec 5.5 1.0 2.5 2 0 Management DM&E, Learning_& Knowledge Sharing 4.5 1 2.5 2.0 DProject Management 1.0 10 - I- Total Costs 55.0 25.0 20.0 10.0 Table 2: Multiyear expected disbursements in (USD, millions) scayearf (uly-June 2018 1 2019 _2020 2021 2022 2023_ Cumulative 2.80 11.00 22.00 38.50 49.50 55.00 1.5. Funding summary Source of Developmen Cumulative Cumulative Undrawn Undrawn funds t Partner amount amount balance as balance as at Commitmen received as received as at at 30 June 30 June 2020 tUSD at 30 June 30 June 2020 2020 (USD) (Frw) ...... 2020 ___ (pSD..- f (i) GranA___B)___________ ___(A)-(B)_ ___________ _________ ___________ (i) Grant Oóffice of the A uditor General of State Finan ces 7 STUNTING PREVENTION AND REDUCTION PROJECT (SPRP) AUDIT REPORT ON FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020 Source of Developmen i Cumulative Cumulative Undrawn Undrawn funds t Partner amount amount balance as balance as at Commitmen received as received as at at 30 June 30 June 2020 t USD at 30 June 30 June 2020 2020 (USD) (Frw) 2020 (USD) _(Frw) WB-GFF 10,000,000 6,052,333 5,198,954,047 3,947,667 3,391,045953 WB- 20,000,000 i 4,525,962 3,887,801,358 15,474,038 13,292,198,642 MDTF Loan WB-IDA 25,000,000 12,160,415 10,445,796,485 12,839,585 11,029,203,515 ..___ _ .......,.......0 0 ,0 00. ... .... . - -- ----- - - -- ----- .. ........... .......... .....--- ------ - -- Total 55,000,000 22,738,710 19,532,551,890 32,261,290 27,712,448,110 1.6. Registered office The proj ect is domiciled in Kigali, Rwanda. Rwanda Biomedical Center (RBC) P.o. Box 7357 Kigali-Rwanda 1.7. Bankers National Bank of Rwanda (BNR) 1.8. Auditors The project is audited by the Office of the Auditor General. 1.9. Management team The management team who held office during the year ended 30 June 2020 until the time of audit in October 2020 is as follows: Name i Position Dr. Sabin NSANZIMANA Director General - RBC from 30 July 2019 to date Dr. Jeanine U.CONDO Director General-RBC from 19 February 2016 to 30 July 2019 James KAMANZI __ _ Deputy Director General - RBC Dr. Gilbert BIRARO i RBC/SPIU Coordinator ... Dr. Felix SAYINZOGA Maternal Child Community Health (MCCH) Division Manager - . Isaac MBWIRABUMVA SPRP Program Manager George NTAGANDA Corporate Services Program Manager - SPIU/RBC Epro dite BITÉGA Éinancial Coordination Specialist - SPIU/RBC Vaens HBIYAREMSPRP Financial Specialist Francis K. KAREGEÉSA SRP Financial Specialist Jean Felix DUSENGE SPRP M&E Specialist Office of the Auditor General of State Finances 8 STUNTING PREVENTION AND REDUCTION PROJE CT (SPRP) AUDIT REPORT ON FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020 2. STATEMENT OF MANAGEMENT RESPONSIBILITIES Article 66 of the Organic Law No 12/2013 of 12/09/2013 on State Finances and Property requires budget agencies to prepare and submit to the Ministry annual financial statements in a period of one month from the end of the fiscal year and submit their annual financial statements to the Auditor General of State Finances not later than 30e September of the following fiscal year. Article 19 of the Organic Law No 12/2013 further stipulates that the Chief Budget Manager is responsible for maintaining accounts and records of the budget agency, preparing reports on budget execution, managing revenues and expenditures, preparing, maintaining and coordinating the use of financial plans, managing the financial resources for the budget agency effectively, efficiently and transparently, ensuring sound internal control systems in the budget agency and safeguarding the public property held by the budget agency. As Chief Budget Manager, I accept responsibility for the annual financial statements, which have been prepared using appropriate accounting standards applicable to Public entities as determined by Article 99 of the Ministerial Order No. 001/16/10/TC of 26/01/2016 relating to financial regulations. These financial statements have been extracted from the accounting records of Stunting Prevention and Reduction Project (SPRP) and the information provided is accurate and complete in all material respects. The financial statements also form part of the consolidated financial statements of the Government of Rwanda. In my opinion, the financial statements give a true and tair view of the state of the financial affairs of Stunting Prevention and Reduction Project (SPRP). I further confirm that Stunting Prevention and Reduction Project (SPRP) maintained proper accounting records were which can be relied upon in the preparation of financial statements. I also confirm that adequate systems of internal control were maintained and operated effectively during the year to safeguard the assets of budget agency. CAL Signature: Dr. Sabin NSANZIMANA Director General Date: ff . 12 2c Office of the Auditor General of State Finances 9 STUNTING PREVENTION AND REDUCTION PROJECT (SPRP) AUDIT REPORT ON FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020 3. REPORT OF THE AUDITOR GENERAL REPORT ON THE FINANCIAL STATEMENTS Dr Sabin NSANZIMANA Director General 3.1. Opinion As required by Article 165 of the Constitution of the Republic of Rwanda of 2003 revised in 2015, and Articles 6 and 14 of Law no 79/2013 of. 11/09/2013 determining the mission, organization and functioning of the Office of the Auditor General of State Finances (OAG), I have audited the financial statements of Stunting Prevention and Reduction Project (SPRP) for the year ended 30 June 2020. These financial statements comprise the statement of financial position as at 30 June 2020, the statement of revenue and expenditure, statement of cash flows, statement of changes in net assets and budget execution report for the year then ended, and notes to the financial statements, including a summary of significant accounting policies. These financial statements are set out on pages 13 to 28. In my opinion, the accompanying financial statements give a true and fair view of the financial position of Stunting Prevention and Reduction Project (SPRP) as at 30 June 2020, and of its financial performance and its cash flows for the year then ended in accordance with the guidelines provided by Ministerial Order no 001/16/10/TC of 26/01/2016 relating to financial regulations and Organic Law No 12/2013/OL of 12/09/2013 on State Finances and Property. 3.2. Basis for Opinion I conducted my audit in accordance with the International Standards of Supreme Audit Institutions (ISSAls), My responsibilities under ISSAIs are described in section 3.4 of this report. I am independent of Stunting Prevention and Reduction Project (SPRP) and have fulfilled my ethical responsibilities in accordance with the ethical requirements that are relevant to my audit of financial statements of public entities as determined by the Code of ethics for International Organization of Supreme Audit Institutions (1NTOSAI), I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my qualified opinion. 3.3. Responsibilities of management and Project Steering Committee for the Financial Statements According to Organic Law No 12/2013/OL of 12/09/2013 on State Finances and Property, management of Stunting Prevention and Reduction Project (SPRP) is responsible for keeping accounting records and books of account, and preparation of financial statements in accordance with the financial regulations prescribed by the Minister in Ministerial order no 001/16/10/TC of 26/01/2016 relating to financial regulations. This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of financial statements that are free from material misstatement, whether due to fraud or error. Office of the Auditor General of State Finances 10 STUNTING PREVENTION AND REDUCTION PROJECT (SPRP) AUDIT REPORT ON FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020 In preparing the financial statements, management is responsible for assessing the Stunting Prevention and Reduction Project (SPRP)'s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless Government either intends to discontinue operations of the Stunting Prevention and Reduction Project (SPRP). Those charged with Governance of this project are the Project Steering Committee. They are responsible for overseeing Stunting Prevention and Reduction Project (SPRP)'s financial reporting process. 3.4. Auditor General's responsibilities for the audit of the financial statements My objective when conducting an audit is 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 my opinion. Misstatements can arise from fraud or error and are considered material if individually or in aggregate, they could reasonably be expected to influence economic decisions of users taken on the basis of these financial statements. An audit conducted in accordance with ISSAls requires an auditor to exercise professional judgment and maintain professional skepticism throughout the audit and involves: * The identification and assessment of the risks of material misstatement of the financial statements, whether due to fraud or error; design and perform procedures responsive to those risks and to obtain sufficient and appropriate audit evidence to provide a basis for the auditor's 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 controls. * Obtaining 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 purposes of expressing an opinion on the effectiveness of internal control. * Evaluating the appropriateness of accounting policies used, the reasonableness of accounting estimates made by management. * Concluding on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Stunting Prevention and Reduction Project (SPRP)'s ability to continue as a going concern as well as evaluating the presentation of the financial statements. Off ice of the Auditor General of State Finances 11 STUNTING PREVENTION AND REDUCTION PROJECT (SPRP) AUDIT REPORT ON FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020 Evaluation of the overall presentation, structure and content of the financial statements, including disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieved fair presentation. 2020 Office of the Auditor General of State Finances 12 STUNTING PREVENTION AND REDUCTION PROJECT (SPRP) AUDIT REPORT ON FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020 4. CONSOLIDATE D FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020 4.1 CONSOLIDATED STATEMENT OF REVENUE AND EXPENDITURE FOR THE YEAR ENDED 30 JUNE 2020 Description Notes 12 months to 30 12 months to 30 June 2020 June 2019 - ----Frw Frv Revenues............ Grants 2 3,697,576,822 2,086,414,117 0ther revenue 3 159,050,160 211,972,901 Externat borrowings 4 7,131,197,854 1,405,326,169 Total Revenue 10,987,824,836 3,703,713,187 Expenses-- -- Goods and services 5 8,947,851,912 5,391,156,608 Social assistance 6 1,165,338,894 1,466,858,595 _cqisition of fixed assets 7 7,547,929 Total expenses 10,113,190,806 6,865,563,132 Surplus /(Deficit) for the peiiod 874,634,030 (3,161,849,945) The notes set out on pages 18 to 28 form an integral part of the financial statements. Office of fte A uditor General of State Finances 13 STUNTING PREVnTION AND REIDUCTION PRQECT (SrRP) AUDIT REPOIRT ON FINANCIAL STATEMENTS FOR THE YE,AR ENDED 30 JUNE 2020 4.2 CONSOLIDATED STATEMENT OF FNANCIAL POST-TION AS AT 30 JURNE 2020 Deseription Notes Balance as at Balance as at 30 June 2020 30 June 2019 _ Fr, __n_ Total8»ssesA 376k 73]ff2ilg5 Liabilities ,.-- e~rrntiabilities --. .....-- Total,abilitiese ()41 844) 5_4728 *Net ansets C = A-B3 - - 3,719.,414,526 2 8,8126 Accuulated surplus - 0 8 . .38,91,261 _ - 6,000.831,206 Prior year adutmnents _ _1 _ 5,799,235- Sely_(dfict) o peio 74,634,O30 Q1 61,849,945) Total net assets 3,719,414,526 2,838,981,261 The notes set out on pages 18 to 28 form an integral part of the financial statements. The financial statemnents werc approved by SPRP maangm cmt--amd were signed on its béhalf by: Prepared by: KAREG SA KAYENDA Francis Financial Specialist gelnature Date Checked by: EPAPBRODITE BITEGA Financial Coordination Specialist Si Date Checked by: NT'AGAND_A George LV Cororte service Program Manager ---jgnay Date Checked by : Dr Gilbert BIRARO Projcct Coordinator Signature Date Approved by: Dr Sabin NSANZMANA 2- Chief udget Mannger u, Date Ofice of the Aditor General afState Fnanices 14 STUNTING PREVENTION AND REDUCTION PROJECT (SPRP) AUDIT REPORT ON FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020 4.3 CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2020 Deseription 12 months to i 12 months to 30 June 2020 30 June 2019 Frw Frw Cash fIows from operating activities Grants 3,697,576822 2 208414,117 Other revenue 159,050160 211,972,901 Expenses (5,391_156_60_) Goods aindserviees (8,915,411,471) 5,391,15608) Social assistance 1,165,338,894) (1,466,858,595) Adjsted for: - -- - ------- 1 Changes in payables (77 284,561) 85,472,889 Prior year adjustments 5,799,235 Net cash flows from operating activities ,295,608,709) (4,474,155,296) Cash flows from investing activities Acquisition of fixed assets (7,547,929) Net cash flows from investing activities (7,547,929) Cash flows from financing activities Proceeds from borrowings -.- 7,132,227,929 i 1,405,326,169 Net cash fiows from financing activities 7,132,227 929 1,405,326,169 Net increase/(decrease) in cash and cash 836,619,220} (3,076,377,056) equivalents Cash_a cash eguivalents at beginning of period 2,924,454,150 6,000,831,206 Cash and cash equivalents at end of period 3,761,073,370 2,924,454,150 The notes set out on pages 18 to 28 form an integral part of the financial statements. Office of the Auditor General of State Finances 15 STUNTING PREVENTION AND REDUCTION PROJECT (SPRP) AUDIT REPORT ON FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020 4.4 CONSOLIDATED STATEMENT OF CHANGES IN NET ASSETS FOR THE YEAR ENDED 30 JUNE 2020 Description Accumulated Adjustments Total surplus/loss Frw Frw Frw Balances as at 30 June2018 6,000,831,206 - 6,000,831206 Net deficit for the financial year (3,161,849,945) - (3,161,849,945) Balance as at 30 June 2019 2,838,981,261 - 2,838,981,261 Balances as at 01 July 2019 2,838,981,261 2,838,981,261 Cash and cash equivalents - 5,799,235 5,799,235 Net surplus for the financial year 874,634,030 874,634,030 Balances as at 30 June 2020 3,713,615,291 5,799,235 3,719,414,526 The notes set out on pages 18 to 28 form an integral part of the financial statements. Office of the Auditor General of State Finances 16 STUNTING PREVENTION AND REDUCTION PROJECT (SPRP) AUDIT REPORT ON FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020 4.5 CONSOLIDATED BUDGET EXECUTION REPORT FOR THE YEAR ENDED 30 JUNE 2020 Description Budget Actual Variance Performan Frw Frw Frw ce_(%) A B A-B (B/A)*100 RECE IP T S - - ---------..........--. Grants 4,768,306,659 3,697,576,822 I 1,070,729,837 77.54% Other revenues- 159,050,160 (159,050,160) 0% Total receipts I 4,768,306,659 3,856,626,982 911,679,677 80.88 EXPENDITURE Goods and services 9,386,293,467 8,947,851,912 470,881,996 95% Capital expenses 1,368,900,403 - 1,368,900,403 0% Social assistance - 1,165,338,894 (1,165,338,894) 0% Total payments 10,755,193,870 10,113,190,806 674,443,505 94.03% Financing Borrowings - External 5,986,887,211 7,131,197,854 (1,145,340,718) 119% Total net incurrence - 874,634,030 of liabilities The notes on pages 18 to 28 form an integral part of the financial statements. Explanation of variances: (i) The overall budget performance is 94.03%. The variance was due to ongoing contracts and commitments (ii) Grants; The variance on grants was due to pending contracts and commitments. (iii) Other reven ie: It includes exchange gains and monthly translation gains plus the funds returned by Kayonza District (Previously used for non-related activities), This revenue was not initially planned during 2019-2020 fiscal year. (iv) Capital expenditure: There was no capital-related expenditure during 2019-2020 fiscal year. (v) Social assistance: Social assistance related expenditure that was initially planned under acquisition of capital assets and adjustments were made thereafter. (vi) Proceeds from borrowings: The increase of proceeds from borrowings was due to purchase of FBF which was not initially planned. It came in after restructuring the project. Office of the Auditor General of State Finances 17 STUNTING PREVENTION AND REDUCTION PROJECT (SPRP) AUDIT REPORT ON FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020 4.6 NOTES TO THE FINANCIAL STATEMENTS 1. Significant accounting policies Public entities maintain their books of account on a modified accrual basis of accounting as prescribed in basis for preparation. 1.1. Statement of compliance The financial statements have been prepared in accordance with the Organic Law No 12/2013 of 12/09/2013 on State Finances and Property and related legal framework. These financial statements have been authorized for issue by The Chief Budget Manager on 14 August 2020. The presentation and classification of items in the financial statements are consistent from one period to the next and takes into consideration progressive improvements as contained in the Government of Rwanda roadmap to migrate to accrual IPSAS. 1.2. Basis of preparation The financial statements have been prepared on the basis of historical costs unless otherwise stated. The statement of cash flow statement is prepared using the direct method. In this context, modified accrual basis of accounting means that financial transactions and events shall generally be recognized in the books of account when they occur and not only when cash or its equivalent is received or paid. The financial statements are presented in Rwanda Francs (Frw). 1.3. Reporting entity The Financial Statements have been prepared by Stunting Prevention and Reduction Project (SPRP). 1.4. Reporting periods The Government of Rwanda fiscal year runs from 1" July to 30h June. These financial statements cover the period from 1"July 2019 to 30t" June 2020. The comparative figures reflect the 12 months ended 30' June 2020. 1.5. Key assumptions and judgements These financial statements, as a component of the Government consolidated financial statements, reflect the Government's financial position as at 30 June 2020, and the financial results of operations and cash flows for the period/year ended on that date. Included in these financial statements are a number of judgements, estimations and assumptions. The assumptions are based on information available at the time of the preparation of the financial statements. It should therefore be noted that actual results may differ from the assumptions stated and thus have a material impact on the financial statements. Office of the Auditor General of State Finances 18 STUNTING PREVENTION AND REDUCTION PROJECT (SPRP) AUDIT REPORT ON FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020 1.6. Presentation currency The functional currency of the Government of Rwanda is the Rwandan Franc. For reporting purposes, the financial statements are translated into Rwandan Francs. The rates used to translate foreign currency balances is the average rate applicable by National Bank of Rwanda as at 30 June 2020. 1.7. Adoption of new and revised standards The Government is in the process of transitioning to IPSAS through a phased approach that involves a six-year implementation plan. The current year is year 2 of the transition process. By the end of the six-year implementation period, the Government plans to have fully transitioned to IPSAS and adopted all relevant standards. 1.8. Recognition I. Revenue recognition * Grants In the context of this Project, grants are transfers received from World Bank. Grants are recognised in the books of accounts when cash is received. * Other revenue These are other revenue not classified in other classes of revenue. This includes foreign exchange gains, claims from insurance and guarantees seized. * Borrowings The Ministry of Finance and Economic Planning is the principal borrowing agent for Central Government. Public debt and associated interest is recognized on cash basis. Proceed from loan borrowing is recognized as revenue during the year of receipt at cost and repayment as expenditure in the year of repayment. Cash is considered as received when recipient entity received a transfer advice from the partner rather than when cash is received in the bank account of the receiving entity. II. Expenditure All expenditure is recognised on accrual basis. However, the point of recognition may be different according to their categories. a) Goods and services Goods and services consists of the value of goods and services used for the production of market and nonmarket goods and services. The value of goods or services is recorded when the goods or services are actually used rather than when they were acquired or paid for. In practice, these events often coincide for inputs of services but not for goods, which may be acquired some time in advance of their use. The Office of the Auditor General of State Finances 19 STUNTING PREVENTION AND REDUCTION PROJECT (SPRP) AUDIT REPORT ON FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020 value of goods purchased and held for resale is recorded as goods and services when they are sold. b) Social assistance Social benefits are current transfers receivable by households intended to provide for the needs that arise from social risks-for example, sickness, unemployment, retirement, housing, education, or family circumstances. These benefits are payable in cash or in kind to protect the entire population or specific segments of it against certain social risks. Social assistance is accounted for on cash basis and recognized in the books of accounts when cash and cash equivalent is paid out. Cash is considered as paid when consideration for payment such as EFT, Cheque, Payment Order are signed rather than when cash and cash equivalent are debited from the bank statement. III. Assets and Liabilities a) Cash and bank balances They comprises cash on hand and balances with banks. b) Payables These mainly relate to invoices for goods and services which were outstanding on the date of the closure of the fiscal year. These are recognized as liabilities for that specific fiscal year. All goods received notes are recognised as liabilities if not yet paid as at the end of the period. It also includes short term borrowings received by budget agencies from Local Commercial Banks as these are not regarded as public debt. IV. Other relevant information a) Changes in accounting policies and estimates When presentation or classification of items in the financial statements is amended or accounting policies are changed voluntarily, comparative figures are restated to ensure consistency with the current period unless it is impracticable to do so, b) Foreign currency transactions Transactions denominated in foreign currencies are initially translated to the Rwandan Franc at the foreign exchange rate at the date of transaction. The National Bank of Rwanda provides exchange rates for major foreign currencies on a daily basis. These are presented for selling rate (rate the bank will sell foreign currency to its clients), buying rate (rate the bank will buy foreign currency from its clients) and average rate (average between the selling and buying rate). During the year, revenue items are translated using the selling rate (this equals the Buying rate presented at BNR website) of the transaction day whereas the Expense items should be Office of the Auditor General of State Finances 20 STUNTING PREVENTION AND REDUCTION PROJECT (SPRP) AUDIT REPORT ON FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020 translated using the buying rate (this equals the selling rate presented at BNR website) of the transaction day. The associated exchange losses are recorded as other expenditure while exchange gains should be recorded as other revenue. At the end of the year, book balances, Assets (such as bank and cash and accounts receivables) and liability (such as accounts payables), denominated in foreign currencies are converted into the Rwanda Franc at the average rate of exchange ruling on that closing date, as issued by the National Bank of Rwanda. The associated exchange losses/gains are recorded as expenditure/income in the books. c) Comparative figures Adjustments have been made on the opening balances of the current financial period with respect to adjustments made by individual entities relating to the comparative periods. d) Subsequent events There have been no events subsequent to the financial year end with a significant impact on the financial statements for the year ended 30 June 2020. 2. Grants During the 12 months to 30 June 2020, SPRP received grants from Development Partners as detailed in the table below: Name of Donor Transaction Amount in Exchange 12 months to 12 months to date foreign rate 30 June 2020 30 June 2019 currency Frw Frw USD International Organizations........ Power of 4/5/2020 325,000 922.534037 299,823,562 1,343,755,912 Nutrition (PoN) Power of 21/11/2019 862,963 908.057191 783,619,758 Nutrition (PoN) Power of 24/6/2020 650,156 926.87855 602,615,651 Nutrition (PoN) Global 4/5/2020 293,963 922.534037 271,190,873- Financing Facility (GFF) Global 21/11/2019 1,620,129 908.057191 1,471,169,789 1'742,658,205 Financing Facility (GFF) Global 24/6/2020 290,391 926.87855 269,157,189- Financing I Facility (GFF) 4,042,602 3,697,576,822 2,086,414,117 Office of the Auditor General of State Finances 21 STUNTING PREVENTION AND REDUCTION PROJECT (SPRP) AUDIT REPORT ON FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020 3. Other revenue During the 12 months to 30 June 2020, SPRP received funds from various other sources as detailed in the table below: ID Description 12 months to 30 12 months to 30 June Accou June 2020 2019 nt Frw Frw 145111 Gain on currency exchange and 158,675,560 211,972,901 translations Unidentified revenue 374,600 - 1452 (Exchange refund-Kayonza District) Total 159,050,160 211,972,901 4. External borrowings During the year ended 30 June 2020, the project received loan as detailed in the table below Name of Date on Amount Exchange Amount in local Amount in Partner which the in foreign rate currency/ fiscal local loan was currency year ended 30 currency/ received USD June 2019 fiscal year Frw ended 30 June 2018 Frw IDA 5/4/2019 1,622,227 922.534037 1,496,559,623.24 1,405,326,169 IDA 24/6/2020 3,149,596 926.8785501 2,919,292,974 379 IDA 21/11/2019 2,990,280 908. 057191 2,715,345,257.10 Total 7,762,103 7,131,197,854 1,405,326,169 5. Goods and services During the year ended 30 June 2020, the project consumed goods and services as detailed in the table below: ID Description 12 months to 30 June 12 months to 30 Account 2020 June 2019 Frw Frw 2211 Office supplies and 467,069,105 557,437,473 consumables 221402 Fax and telephone 348,460,349 452,337,313 2216 Bank charges 79,030.00 16,403,250 Loss on currency exchange 39,180,349 - and translations 221703 Adverts and announcements 434,604,431 813,630,619 221704 Meetings and special 58,452,330 I assembly costs I Office of the Auditor General of State Finances 22 STUNTING PREVENTION AND REDUCTION PROJECT (SPRP) AUDIT REPORT ON FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020 ID Description 12 months to 30 June 12 months to 30 Account 2020 June 2019 Frw Frw 222108 Technical assistance 67,234,650 remuneration ... ... . 1, 8 222109 Contractual personnel 180,494,030 1,337,889,853 222118 Performance Based 2,225,496,403 - Financing (PBF) 2231 Transport and travel 449,726,453- 2271 Heath and hygiene 4,290,154,382 152,111,401 226 Training costs 386,900,400 2,061,346,699 Total 8,947,851,912 5,391,156,608 6. Social assistance During the year ended 30 June 2020, the project incurred social assistance expenditure as detailed in the table below: ID Description 12 months to 30 June 2020 12 months to 30 June 2019 Account Frw Frw 7 Social assistance 1,165,338,894 1,466,858,595 272 benefits Total 1,165,338,894 1466,858,595 7. Capital expenditure During the year ended 30 June 2020, the project incurred capital expenditure as detailed in the table below: ID Description 12 months to 30 June 2020 12 months to 30 June Accountl Frw 2019 Frw 232 1 Acquisition of - 7,547,929 intangible assets - Website ... Total I 7,547,929 8. Cash and cash equivalents The bank amounts shown in the table below have been reconciled to the bank statements as at 30 June 2020 and as at 30 June 2019: ID Bank name Account Balance as at 30 Balance as at 30 June account number June 2020 2019 - -- - - . . - - -Frw Frw Local bank accounts - 311301 BNR 1000043873 1 3,352,441,918 2,511,484,153 ___------ - --- -- 311302 NECDP 1000045787 202,961,057 23,86,968 3171303 Ngororero District 1000046856 41,600,240 44,034,090 Office of the Auditor General of State Finances 23 STUNTING PREVENTION AND REDUCTION PROJECT (SPRP) AUDIT REPORT ON FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020 ID Bank name Account Balance as at 30 Balance as at 30 June account number June 2020 2019 Frw Frw 311304 Bugesera Distriet [1000046325 4,748,715 13,978,737 311305 Nyamagabe 1000047038 1,666,045 16,759,100 District 311306 i Rubavu Distrit [1000047267 3,731,350 29,478,360 311307 Gakenke Distriet t 1000046597 6,420,267 23,755,237 311308 Nyabihu Distrit ¯1000047321 6,696,738 8,890,522 311309 Kayonza Distiet L0¯ 46759 I 10 157,897 9,552,637 311310 ~Rhnistic i1000046357 i 17,374,937 38,924,071 311311 N.10000458guru17r. 319 65 4 38,131,513 311312 Rusizi District 1000046546 30,613,963 38,915,384 ¯ --------¯-- ¯¯- -t o----r- ¯------5,851,451 35,807,915 311313 Rutsiro Distriet 10000476985,14133095 311314 HuyeDistict 000046268 12,357,954 34,051,763 3¯1113 Karongi i 1000047097 33,193,036 56,824,700 i Kigeme Hospital 500008731128 363,000 2 Gisenyi Hospital 530009275170-- 3 Kabaya Hospital 52233557121016 318,000 8 4 Gitwe Hospital 560000174685 114,000 i- 5 Kabutare Hospital 500008644939 61,960 6Nyamata Hospital 620020014769 160 7 Gihundwe Hospital 540031748635 5,377,500 - 8 u _ i Mui¯oro Hospita 560000243191 ]¯¯ 241,590 - 9 Mibilizi Hospital 2200531550147 9,304,500 j 10 Kibuye Hospital 21420511715101 i 373,278 0 -~~ ------ - ----- -------------. - ------- il Kaduha Hospital 70133803000601 - 12 Gahini Hospital 570007292040 i . 13 i Shyira Hospital 3100621960220 224,000 14 Rwinkwavu 21310740215101 Hospital 0 5 Ruli Hospital 0020809664 266 00 16 Huhango Hospital 850040797955 1,350 - 17 N b Hospital 3100623430449- 3,3000 18 Murunda Hospital 21410798415101 82,850 4 1 I unin Hospitali1i00362441974 559,160- 3,761, 73,37 2,924,454,150 9. Accounts payable The following were accounts payable as at 30 June 2020: ID Deseription 12 months to 30 12 months to 30 June Account June 2020 2019 4121 Accounts payable -Third parties . Returned payments I- - 4,376,208 53,440,150 M ission allow ances 2,796,500 - ----- Office of the Auditor General of State Finances 24 STUNTING PREVENTION AND REDUCTION PROJECT (SPRP) AUDIT REPORT ON FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020 ID Description 12 months to 30 12 months to 30 June Account June 2020 2019 Frw Frw i Techno Star 85,000 4122 Payroll liabilit 412301 Payables to Government budget Kgne District 475,000 8,088,823 F Nyabihu District 455,620 412302 Payables to Public Enterprises (GBEs . . . .... RBC (MTN Rwanda cell) 1 33,470,516 11,812,448 Kayonza District -4,087,584 Gakenke District 1,223,500 Ngororero Distrct 5,93 1,200 Rusizi District - 255,000 4124 Tax liabilities i VAT ___ 634,184 Total 41,658,844 85,472,889 10. Accumulated surplus from previous years These include cash book reconciled bank balances, petty cash balances, accounts payable balances as well as accounts receivable balances existing at the beginning of the year along with the closing balance of the prior year adjustments and the accumulated balance as of the last year. ID Deseription June 2020 (Submitted June 2019 June 2019 accoun for consolidation) (adjustments) (After audit t Frw Frw adjustment) Frw 511101 1 Cash and cash 2,924,454,150 - 2924,454,150 equivalents j 511103 Accounts payable [ i (85,472,889) 85,472,889) 521101 Total 2,838,981,261 2,838,981,261 11. Prior year adjustments The following are prior year adjustments to opening balances: ID Deseription 12 months to 30 June 12 months to 30 June Accou 20201 2019 nt wFrW Frw 512 1011 Cash and cash equivalents* 5,799,2351 Total 5,799,235 - *: The adjustment is related to funds returned due to overpayment to suppliers and other beneficiaries. Office of the A uditor General of State Finances 25 ! � I � �•� �а � � + !О д � i �в �� j� �М: f UA.. г � i•+ Е G ' ''�' д �' мi L � �Ld � € � � ! � I, : а� � � : а� ; � : . � � �_.___._. , _......______ ................w______.�:�.._._._._._.. ___.____. . 1.......... ir �д Э м �м �r. 4б Э � iЙ д� ��У ��J ;^б^ C�j � `¢� _.._+ € N_ i С� � Ni �в о � � а+ � �Ф !Т гQ� �Tfi �М •V G} V ^. 41 €,�. �М itD ,С",i �,� �ы i'�1 п1 I� tD 's тt {�. {+ О 1С � N СЭ � цl �^' � о� А � L ? ;м ;м ! ��ts � � р С. +. � ч..r � : , , � � ; . � г.� `�U� О � '{рΡ ' С� �� s'в � i 3 +I•�' .� 4 ' вrt _� _....._._._._....��.__г....r_....__J__._' ......... ....,.__.......,д........_. ..+ .___..........._. . У�в4 С ,.+........,_..._.l О � О Э О �+ � д � �ч 3�Q I4 д ' 'д � �+з го о !д 4 ь.,I'� i© �О О !д � ��� г г+л ;й � �й Ч..ы r,�j Е� ['.U ; Эf1 � N ('Т Ci б)г F'. гС3 !� �Е � t� 4� `� � г © 'я l'Ч � �С � � .р Ё е'.' �'_' _ � L; i � �. а ; � � , � �� , _...._._i_.�_��._� � _._._-_. _.....;_._ ............._._._-!------._ ,..._...,..,...а,..,_�..,..,.. .._._._з.__._.. С ` � д � ` \ � \° � `� f \° ' \° �'Ч � � 1 V �� � ;Q j� ;а д , W � I4 � о rn ;о�о ;rn 1с��, � %s ф Ё 1 � i� � , � � � � Е °м � '�°� � � i , , � ,г.,,,, ь.._____.._._....__....._._...t.._....,__._....___.-3_.._.__._....__.-----i-.._._....._;......._ д ! � i�` OrJ t[�-� '� Э � ® �' j ё � i� с`�'-� 'г�а i �� � ':.. о �' ^о ° Е �' д- ` `�' "� W О сг ,�i а> 1о 1� �� ; й ле bt1 � а��-г� I r- + и � cv i Й h�i ц е`ч С д, ,о j� ? ос� � т � +� fуΡ' *+ � .+ � �t га N['! и � О'� �w У7. э и `^ 3 I�Q FF++MM �•1 � З � .� г'С С N -__._._._._._ L.., . _-__ ._._.__(-- V1 W iч G� � ...�_� ,.м .._.� iM '� ы Сд ^ .. � об г v1 ! ч� F,�j �,,, � U �у. +,,. •-. .-. 4д ц'l [ О � rh Е-` E•w � � г �,, о R1 �r � ; сл ; ° ; ° �W si С v Rг^а а о � �� €� i� �s О р �' G�, �' г д о ^ ; �r � Сп г м : о Q� � � и Г�а � a�i ` Iй ;СМ �� ia CCi Р/9 �" р,� �� G' ' оо i ;~ � С� г. ; F� О v N � � г ; ; � "� СЛ w+ .,� '� +.+ � k С} � +.•Э и О Э ................__.__._._..;-._._. �.а..л._��_.,._..___._._._..__-_....____...._ � I � � ...._... _. ._� �у � SUy •. � Qв � I Et !;4 i О , .......... . ...�,..,.... . .....,....,..,� , �..���..�.. .,,...,.,.. ....,.,.... . О �D Ьt} 7 •-^ �0 о i10 �у{ �� � � й ���� rn � м й оо � n `� й n �� `r � м rn г�v � ��' ��рΡв о д . r и . и tЛ гч �[i �.+� оо оо � U � Q� � � С�} `�' м [„? � L Еч-�, й Е„ '^ _ ,-. �. _ ..... ,. ................. ........_., •н ь � U « ..............� . ....,..... . ..,..,,... , ,,..._ ............. . ............. ......,..... .. . ..., © v 4 4 о �О 7 N....��. о о 4 � 9 FTy '� Q" �* � й м г�ч � prt Еу F�+y � а м !i д:. й Н � о�о � I= х �. �. �, � � � � а � -- ^ � � _ , .... _ _..__.. ,,, r�ч • � �'. ... � ,. . _ ._. . ... . ь��г �, tC Q, � С п б о са О � ео о о � � }„i �,^ еа м оо �н [ .} �,W,p QI �'L" � � � � й rnи [а' '� �,у iCS '� ё Л и � м ^� �s Н б� � ro` � в � � � �rj �'' О_ � у д. Е- ,,,� .. � � � I Ё 4 ..,,. .. ..._.. ,,.. . .. .., .,, . _..� � О С.? �а С � о �M1Сч й 4 О С3 о � � � � й .� � а �� ..м � � � � Ё � � � � �" v�i" м � � � CJ U � у G � �С а� _.__ ., _,_._. _ .._ ,., , . . ,. _.. _ . �-г � � и � С'� �i yr �у "„� � О .. С3 О О . С7 орΡ.. О Q 4 � /-Г �� F�ч ++ 4 о f? о � О [7 О Ф С? � F�+п {� О %� ?�, с°� .°г� °о °о °о °о °о °о °о `�+ 4в � а� о v, м n� и и 4 и о а� � о ,✓ v �О ��О �л �п ' м" � Qo.. `� а а� � � � � '`. �-г � � � _. -~+ y�j . ..... . . . , . . . . . ... , ,1l � � � � � � � "� О о��i •: `��' �^i е��д �` r.; �, 4 cai й� ы iп �_ ьп о ы р г� г с оо у �� а � н Н ��ч=' �д3 д Q �.°с'� ¢ а � й ©� р.д � о v о� о�' � о� о г, � с�� ё° С1 � М"� С] �. Е� ы� Е � �� i G Ё Р� °' с�ш с'� �°W,a'°= �° в.F-� �i°'� 3= � а г�, (�,: � N� а�`'� �C�i� х�'°ара, аотlеяоU�тееат�м,tс� w�� м�' �y�w�q t� Е� �-.� (� C�U Uu � VU �G т UCJCч�Uxw � Е VLlwш� Uw �Jи м U��e ��Uа,гк Q г!'� � .-.� � t- t- ýwk :14 db r4 tn P4 - ----- ... ....... r- . . . . ........... pe .. ............ CD N al 10 ID Z ........... v STUNTING PREVENTION AND REDUCTION PROJECT (SPRP) AUDIT REPORT ON FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020 DETAILED AUDIT FINDINGS Office of the Auditor General of State Finances 29 STUNTING PREVENTION AND REDUCTION PROJECT (SPRP) AUDIT REPORT ON FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020 5. REVIEW OF INTERNAL CONTROL SYSTEM 5.1. Financial reports not approved by the Project Steering Committee Observation The Project Implementation Manual (PIM) of SPRP approved in June 2018 states that the Project Steering Committee shall approve annual financial reports of SPRP. Contrary to the above requirement, it was noted that the financial reports for the year ended 30 June 2020 were not approved by the Project Steering Committee. This gap is attributed to inadequate monitoring of the Project financial management by the Steering Committee. Risk Errors or omissions in financial reports may remain undetected and corrected due to lack of review and approval by the Steering Committee. Recommendation RBC/SPRP management should ensure that annual financial reports are reviewed and approved by the Steering Committee prior to their submission to stakeholders including MINECOFIN and the World Bank. Management comment Three Steering Committee (SC) meetings have been held to date. The last SC meeting was held on 30 December 2019. During this meeting, we presented the financial reports to the Committee members. However, we will ensure that annual financial reports are approved by the Steering Committee prior to their submission to stakeholders in future. Office of the Auditor General of State Finances 30