MINISTRY OF FINANCE REPUBLIC OF GHANA GHANA ECONOMIC TRANSFORMATION (GETP) PROJECT FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 #PEER / Professional / Ethical / Efficient / Responsive / Transforming Ghana Beyond Aid TABLE OF CONTENTS PAGE REFERNCE JL IbN t>-,~ INDEPENDENT AUDITOR'S REPORT 3-5 STATEMENT OF FINANCIAL POSITION 6-6 SOURCES & USES OF FUNDS 7-7 NOTES TO THE FINANCIAL STATEMENTS 8-11 GHANA ECONOMIC TRANSFORMATION PROJECT INDEPENDENT AUDITORS REPORT ON THE FINANCIAL STATEMENTS OF THE GHANA ECONOMIC TRANSFORMATION PROJECT (CREDIT NUMBER 6465-GH) FOR THE YEAR ENDED 31 DECEMBER 2020 Introduction Ghana Economic Transformation Project referenced Credit Number 6465-GH is funded by the International Development Association (IDA) through Credit at an estimated cost of US$200 Million. The Project was approved on 2 July, 2019 and became effective on 17 September 2020. The Borrower is the Ministry of Finance on behalf of the Government of Ghana. The Implementing Agencies are the Chana Investhent Promotion C enter, Ministry of Trade & Industry, Ministry of Business Development, Ghana Free Zones Authority, National Board for Small Scale Industries (NBSSI) rLow Ghana Enterprise Agency (GEA), Ghana Standard Authority (GSA), Registrar General's Department (RGD), Ghana National Accreditation Service, National Youth Entrepreneurship Planning, and Venture Capital Trust Fund. The expected Project closing date is November 30, 2025. Project Development Objective(s) The objective of the Ghana Economic Transformation Project is to promote private investments and firm growth in non-resource-based sectors. Project's Components This project has four components. i) Component 1 - Enabling investments (US$35 million equivalent), will focus on improving the enabling business environment, investment attraction capacity and the quality infrastructure support syster for companies that want to invest and grow their businesses in Ghana; ii) Component 2 - Crowding-in investments: Promoting spatial and industrial planning and development (US$79 million equivalent), will focus oh enhancing the Government's programs in investment promotion and spatial development (including Special Economic Zones), thereby addressing the constraint to access quality industrial land in the country; iii) Component 3 - Accelerating Entrepreneurship and MSME growth (US$80 million equivalent), will support entrepreneurship and MSMF growth in non-resource-based sectors, addressing specifically the limited development of the MSME and entrepreneurship support ecosystem, including early stage financing; 1 iv) Component 4 - Project Management and Evaluation (US$6 million equivalent), will finance project management activities including fiduciary responsibilities, procurement, communication and dissemination, as well as monitoring and evaluation of project implementation and its impact. This will include capacity building for the Project Coordinating Unit (PCU), the Economic Transformation Unit and the Resource Mobilization and Economic Relations Division (RMERD) within the Ministry of Finance (MOF). General Information Name Designation Project Coordinating Unit Yvonne Quansah, Director, ERMERD Franklin Ashiadey, Project Administrator Kofi Yeboah Ntow, Project Coordinator Paul K. Agbo, Senior Project Accountant Godwin Adapaura, Project Accountant Alhassan Abdul-Lafef, Procurements Specialist. Louisa Amankwaa, Procurement Assistant. Address: Ministry of Finance Finance Drive, Accra. P. 0. Box M40, Accra - Ghana GA-144-2024 in fo@"mofep.gov.gh Tel: +233 302-747-197 Auditors Ghana Audit Service Post Office Box M96 Bankers Bank Of Ghana NIB Ghana Ltd 2 CGAD/GEN.ADM/21/51 M. 96 Accra 22 October 21 INDEPENDENT AUDITOR'S REPORT THE DIRECTOR EXTERNAL RESOURCE MOBILISATION & ECONOMIC RELATIONS DIVISION MINISTRY OF FINANCE ACCRA Report on the Audit of the Financial Statements of Ghana Economic Transformation Project Referenced IDA Credit Number 6465-GH. We have audited the Financial Statements of the Ghana Economic Transformation Project funded by the International Development Association (IDA) Credit Number 6465-GH. The project is being implemented by the Ministry of Finance through the Project Coordination Unit. The Report is intended for the information and use of the Ministry of Finance and the International Development Association. This Report should not be made available to parties not included in this list without our prior consent and we will not be liable for any claim that might be based on this report by such parties. Responsibility of Management and those with Governance for the Financial Statements The Project Coordinating Unit (PCU) is responsible for the preparation and fair presentation of these Financial Statements in accordance with International Public Sector Accounting Standards, and for such internal controls as Management determine is necessary to enable the preparation of Financial Statements that are free from material misstatements, whether due to fraud or error. Those charged with governance are responsible for overseeing the Ministry of Finance's financial reporting process. 3 Auditor's Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the Project's Financial Statements as a whole are free from material misstatements, 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 ISSAI wll always detect a material misstatement when it exists. Misstatements can aNse from fraud or error and are considered material if, individually or in the 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 ISSAI, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: * Identify and assess the risks of material misstatements of the Financial Statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatements resulting trom fraLid is higher than for one resulting from error, as fraud may involve collusion, forgery, intentiial omissions, misrepresentations, or the override of internal control. * Obtain 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 Ministry of Finance's internal control. * Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by Management. * Evaluate the overall presentation, structure and content of the Financial Statements, includinm the disclosures, and whether the Financial Statements represent the underlying transactions and events in a manner that achieves fair presen tation. We communicated with those charged with governance 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. 4 We also provided those charged with governance 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. Basis for Opinion We conducted our audit in accordance with International Public Sector Accounting Standards. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Project's Financial Statements section of our report. We are independent of the Project (Ministry of Finance) in accordance with the ethical requirements that are relevant to our audit of the Financial Statements and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Opinion We have audited the accompanying financial statements of the Ghana Economic Transformation Project (GETP) Referenced Credit Number 6465-GH under the International Development Association (IDA) which comprise the Statement of Financial Position as at 31 December 2020, Statement of Sources and Uses of Funds for the year ended 31 December 2020 as well as the notes to the financial statements, including, list of material assets acquired to date with project funds and a summary of significant accounting policies as set out on page 8. In our opinion, the Project's Financial Statements present fairly, in all material respect the financial position of GEPT as at 31 December 2020 and the results of its operations for the year ended in accordance with International Public Sector Accounting Standards (I;PSAS) and provisions of the Financing Agreement referenced (IDA) Credit Number 6465-GIl and the Accounting Policies set out in Note 1 of the Project's Financial S taternents. BENJAMIN 0! CODJOE DEPUTY AUDITOR-GENERAL/CGAD for: AUDITOR-GENERAL 22 October, 2021 5 MINISTRY OF FINANCE EXrERNAL RESOURCE MOBILIZATION AND ECONOMIC RELATIONS DIVISION GHANA ECONOMIC TRANSFORMATION PROJECT CREDIT NUMBER 6465-GIL STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2020 2020 NON-CURRENT ASSETS NOTES US$ Investment In Project 2 760,319.36 CURRENT ASSETS Bank Balances 3 889,736.33 Total Assets 1,650,055.69 FINANCED BY IDA Designated Loan Account 4 1,650,055.69 Signed: Mr. Kofi Yeboa Ntow Mr. Pu+vvesi Agbo Project Coordinator Project Accountant Ministry of Finance Ministrv of Finance Datc6 Date: 6 MINISTRY OF FINANCE EXTERNAL RESOURCE MOBILIZATION AND ECONOMIC RELATIONS DIVISION GHANA ECONOMIC TRANSFORMATION PROJECT IDA CREDIT NUMBER 6465-GH SOURCES & USES OF FUNDS FOR THE YEAR ENDED DECEMBER 2020 Cumulative as at Dec. Note 20202020 SOURCES OF FUNDS USD USD IDA Designated Dollar Account 4 1,650,000.00 1,650,000.00 Net Interest earned 55.69 55.69 Total Project receipts 1,650,055.69 1,650,055.69 USES OF FUNDS, BY PROJECT COMPONENT Component 1: Enabling Investments 1.1 Improving the Business Regulatory Environment 0.00 0.00 1.2 Capacity Building of GIPC staff and improving 0.00 0.00 GIPC's Systems and Tools 1.3 Investment Policy and Promotion 0.00 0.00 Component 2-Crowding-in Investment 2.1 Institutional and planning capacity building 0.00 0.00 2.2 Viability Gap Fund for zone development 0.00 0.00 Component 3: Accelerating Entrepreneurship and SME growth 3.1 Reform and Rationalization of Government a139,962.92 13)9,962.92 Entrepreneurship and SME Support Agencies 3.2 High-Growth SMEs and Entrepreneurship 0.00 0.00 Ecosystem Strengthening 3.3 Venture Financing for Early Stage Businesses an0.00 0.00 Strategic Industries. Component 4: Enhancing the capacity for financial sector policy, monitoring, supporting project implementation 4.0 Project Management and Evaluation 6 620,356.44 620,356.44 Total Expenditure 760,319.36 760,319.36 Net Cash Available 889,736.33 889,736.33 7