TRUST FUND GRANT AGREEMENT FUNDED BY INTERNATIONAL DEVELOPMENT ASSOCIATION - IDA MANAGED BY NGO DEVELOPMENT CENTER - NDC Project title: GAZA EMERGENCY CASH FOR WORK AND SELF-EMPLOYMENT SUPPORT STATEMENT OF PROJECT ACTIVITIES AND SCHEDULE OF THE MOVEMENTS OF THE PROJECT SPECIAL BANK ACCOUNT FOR THE PERIOD FROM August 14, 2018 TO DECEMBER 31, 2019 AND INDEPENDENT AUDITOR'S REPORT NGO Development Center (NDC) Gaza Emergency Cash for Work and Self-Employment Support For the Period from August 14, 2018 to December 31, 2019 TABLE OF CONTENTS Page Independent auditor's report 2 Statement of Project Activities 4 Schedule of the Movements of the Project Special Bank Account 5 Notes to the financial information of the project special bank account 6 Appendices 9 pwc Independent Auditor's Report to the Management of NGO Development Center (NDC) Jerusalem - Palestine Our opinion In our opinion, the financial information of the Project titled "Gaza Emergency Cash for Work and Self-Employment Support" (hereinafter "the Project"), funded by the International Development Association (hereinafter "IDA" or "the Bank"), and managed by NGO Development Center (hereinafter "NDC"), for the period from August 14, 2018 to December 31, 2019, is prepared, in all material respects, in accordance with the basis of accounting described in Note (2). What we have audited The Project's financial information comprises of: * The statement of project activities during the year ended December 31, 2019; * The schedule of movement of the Project special bank account; and * The notes to the financial information, which include a summary of significant accounting policies. 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 financial information section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Independence We are independent of NDC in accordance with the International Ethics Standards Board for Accountants' Code of Ethics for Professional Accountants (IESBA Code). We have fulfilled our other ethical responsibilities in accordance with the IESBA Code. Emphasis of Matter - Basis of Accounting and Restriction on Distribution and use We draw attention to Note (2) to the financial information, which describes the basis of accounting. The financial information is prepared to provide information to NDC and IDA. As a result, the financial information may not be suitable for another purpose. Our report is intended solely for IDA and NDC and should not be distributed to or used by parties other than IDA and NDC. The financial statement does not comprise a full set of financial statements prepared in accordance with the basis of accounting described in Note (2) to the financial statement. Our opinion is not modified in respect of this matter. PricewaterhouseCoopers, Amaar Tower, Level 7, Al-Irsal, Al-Bireh, Palestine T: (972)2 242 023o, F: (972) 2 242 0231, www.pwc.com/middle-east Note: From Arab Countries Please dial 97o instead of 972 2 pwc Independent Auditor's Report to the Management of NGO Development Center (NDC) (continued) Responsibilities of management and those charged with governance for the financial information Management is responsible for the preparation of the financial information in accordance with the basis of accounting described in Note (2), and for such internal control as management determines is necessary to enable the preparation of financial information that is free from material misstatement, whether due to fraud or error. Those charged with governance are responsible for overseeing the entity's financial reporting process. Auditor's responsibilities for the audit of the financial information Our objectives are to obtain reasonable assurance about whether the financial information as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial information. As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: * Identify and assess the risks of material misstatement of the financial information, 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 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. * Obtain 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 Entity's internal control. * Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. We communicate 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 identify during our audit. PricewaterhouseCoopers Palestine Limited Ramallah, Palestine May 17, 2020 3 NGO Development Center (NDC) Gaza Emergency Cash for Work and Self-Employment Support For the Period from August 14, 2018 to December 31, 2019 STATEMENT OF PROJECT ACTIVITIES (All amounts in USD) Project Actual For the Period from August 14, 2018 to Notes December 31, 2019 Revenues IDA replenishments (3) 7,779,317 Total Revenues 7,779,317 Expenses Cl: Component I - Cash for Work (C4W) (4) 4,238,080 C2: Component II - Internet-enabled self- employment (e-work) (5) 900,000 C3: Component Ill - Project Management, Monitoring and Evaluation (6) 503,445 Total Expenses 5,641,525 Excess fund (7) 2,137,792 - The notes on pages 6 to 8 are an integral part of the financial information. - The financial statement and accompanying notes on pages (4 to 8) was authorized for issue by the NGO Development Center (NDC) management on May 8, 2020 and were signed on their behalf. Mr. Ghassan Kasabreh Mr. Hazem Quneibi Director Finance Manager 4 NGO Development Center (NDC) Gaza Emergency Cash for Work and Self-Employment Support For the Period from August 14, 2018 to December 31, 2019 SCHEDULE OF THE MOVEMENT OF THE PROJECT SPECIAL BANK ACCOUNT (All amounts in USD) For the Period from August 14, 2018 to Notes December 31, 2019 Beginning cash balance Cash receipts 7,779,229 Project disbursements 5,596,038 Excess of cash receipts over cash disbursement (8) 2,183,191 - The notes on pages 6 to 8 are an integral part of the financial information. 5 NGO Development Center (NDC) Gaza Emergency Cash for Work and Self-Employment Support For the Period from August 14, 2018 to December 31, 2019 NOTES TO THE FINANCIAL INFORMATION OF THE PROJECT SPECIAL BANK ACCOUNT (All amounts in USD) NOTE (1) GENERAL NGO Development Center (NDC) was registered with the Ministry of Interior on March 4, 2006 under registration no. (QR 286-B) as a Palestinian Non-governmental Organization (NGO). NDC started its normal activities on July 1, 2006. NDC is working hand-in-hand with the Palestinian NGOs and the community development organizations to enhance their service delivery and build more capable and representative Palestinian civil society. NDC programs and grants empower Palestinians by providing NGOs the skills, tools and funds they require to address social needs and promote self-reliance in adversity. The organization advocates greater NGO transparency and accountability through the adoption of professional financial and management practices and promotes sector-wide coordination and sharing of best practice experiences. On August 14, 2018 NDC entered into a financing agreement "Trust Fund Grant Agreement" with International Development Association (IDA or the Bank) concerning the project titled "Gaza Emergency Cash for Work and Self-Employment Support" (the Project). Under this agreement; the IDA agreed to grant NDC an amount of USD 17,000,000 to implement the Project over the period of three years; from August 14, 2018 to October 31, 2021. The objective of the Project is to provide Target Youth in Gaza with short term employment opportunities and increased access to internet-enabled self-employment opportunities. The Project consists of the following parts: Part 1: Cash for Work (C4W) Provision of Cash for Work Sub-grants to Selected NGOs to implement Cash for Work Sub-projects employing Target Youth. Part 2: Internet-enabled self-employment (e-work) Provision of E-Work Sub-grants to Selected Service Providers to provide e-work support (skills training and on-the-job support) to Target Youth. Part 3: Proiect Management, Monitoring and Evaluation Strengthening the NDC's capacity for Project management, monitoring and evaluation through financing of office equipment, consultants' services, including audit, Training and Incremental Operating Costs. NOTE (2) SIGNIFICANT ACCOUNTING POLICIES a) Basis of accounting The Statement of the Project Activities and the Schedule of the Movement of the Project Special Bank Account were prepared under the modified cash basis of accounting. Under this basis, revenues are recognized when received and expenses are recognized when disbursed, modified for year end accruals and prepayments. b) Special Bank Account As required under the signed agreement with IDA, NDC opened a special bank account for the Project as to make all withdrawals from this account which shall be solely used for the purpose of the Project. c) Foreign currency NDC maintains its books of accounts in USD which is the functional currency of NDC. Transactions denominated in other currencies were translated to USD using the exchange rate prevailing at the date of each transaction. 6 NGO Development Center (NDC) Gaza Emergency Cash for Work and Self-Employment Support For the Period from August 14, 2018 to December 31, 2019 NOTES TO THE FINANCIAL INFORMATION OF THE PROJECT SPECIAL BANK ACCOUNT (All amounts in USD) NOTE (3) IDA REPLENISHMENTS This amount represents the installments received from IDA: For the Period from August 14, 2018 to Date December 31, 2019 December 6, 2018 4,000,000 September 1, 2019 3,779,317 7,779,317* *This amount represents the actual amount transferred from the IDA before deducting the bank charges by Bank of Palestine. NOTE (4) Cl: COMPONENT I - CASH FOR WORK (C4W) For the Period from August 14, 2018 to December Sub-grantee Name 31, 2019 Beit Lahia Development Association 297,570 Bayader for Environment and Development Association 587,110 Palestine Save the Children foundation 261,325 Atfaluna Society for Deaf Children 251,875 Union Of Health Work Committees, Gaza 251,810 Democracy & Workers's rights Center 220,480 MA'AN Development Center 212,030 Al-azhar University Gaza 211,325 The Society of women Graduates in Gaza 389,050 Gaza Culture Development Group 162,215 Right to Live Society 154,050 Injaz Palestine 150,320 Palestinian Medical Relief Society 124,635 General Union of Cultural Centers (GUCC) 120,755 Al Tawasol Forum Society 117,530 Fares Al Arab for development & Charity Works 106,890 Save youth Future Society 104,495 Palestinian Organization for Development 88,710 Women's Affairs Technical Committee 87,495 Wefaq Society for women & Child Care 85,930 Red Crescent Society for Gaza Strip 85,510 Teacher Creativity Center 83,900 Palestine Avenir For Childhood Foundation 83,070 4,238,080 7 NGO Development Center (NDC) Gaza Emergency Cash for Work and Self-Employment Support For the Period from August 14, 2018 to December 31, 2019 NOTES TO THE FINANCIAL INFORMATION OF THE PROJECT SPECIAL BANK ACCOUNT (All amounts in USD) NOTE (5) C2: COMPONENT II - INTERNET-ENABLED SELF-EMPLOYMENT (E-WORK) For the Period from August 14, 2018 to Date December 31, 2019 Gateway for outsourcing Information Technology 327,360 The Islamic University Gaza - Projects 303,540 University College of Applied Sciences 269,100 900,000 NOTE (6) C3: COMPONENT III - PROJECT MANAGEMENT, MONITORING AND EVALUATION From inspection to Date December 31, 2019 Personnel 338,251 Operating Costs 165,194 503,445 NOTE (7) EXCESS FUND This amount represents a fund surplus for the period, which will be carried forward to the next reporting period of project activity. NOTE (8) PROJECT SPECIAL BANK ACCOUNT BALANCE This represents the balance of USD 2,183,191 outstanding in the Project special bank account as of December 31, 2019.This bank account details are as follows: Details Bank Bank of Palestine Branch Ramallah- Al Masyoun Account number- IBAN # PS95 PALS 04710600 0400 0130 0000 3 To reconcile the project special bank account with the report of project activities: Amount Project special bank account balance 2,183,191 Project expenses over revenues 2,137,792 Balance* 45,399 *This represents management fees incurred but still not withdrawn from the special banks account 8 APPENDICES 9 и��г�г�0 иrnтоо ии NОш �ооОг��оо t0 01 О�-1 t0 �-i гА б1 � rI tD � ��Т' г1 N N и и 01 и � и.-+ оо � �t т� г� � r� � � оо оо и� г+ �t и . , _ _ . . , . . . . , _ _ _ _ _ _ , , , �иттrn.-i �too�tи исr �roo mrnrn�or� ooorn�orn rn�r�� и� rnиrn rnrnиoooo N N'с}' N lD М l0 М N N �--1 и � М N �-I а--1 М N N и д V С (0 N т � и о и и и о о и о о о о о о и о о о и о о � и � сч и сч � �� т rn о оо т с� т �.-+ и rn м,-i � n � т� т � и г� и оо rn ct о т ш о и о д• rn оо �у О оо с-1 � с-1 1� 1� cV I� lO т О N О� м �П' � I� vi .--i N 00 r-I О lD о0 �l l0 с-1 О 00 N �-i и N о0 о0 и 00 о0 и д' �--i N� N и N �.� .-� N N �� � N г1 Q1 е1 й О � N �А � � а М � � О � � � й �' О � _ � �� � а � v -с У L О и. 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