•• I I I I MINISTRY OF LANDS & NATURAL RESOURCES P.O. BOX MB 212 I REPUBLIC OF GHANA ACCRA I I I I GOVERNMENT OF GHANA FOREST INVESTMENT PROGRAMME (GFIP) MINISTRY OF LANDS AND NATURAL RESOURCES (MLNR) [STRATEGIC: CLIMATE FUNDED GRANT No. TF18842] I I PROGRAMME FINANCIAL STATEMENTS I 31 DECEMBER, 2015 I I I I I I I I GOVERNMENT OF GHANA FOREST INVESTMENT PROGRAM STRATEGIC CU MATE FUNDED GRANT PROGRAMME I (GRANT NO. TF018842) GENERAL INFORMATION I I PROJECT MANAGEMENT TEAM Prof.Bruce Banoeng- Yakubo- Chief Director, Ministry of Lands & Natural Resources I Mrs.Gifty Mahama Biyira - Director, Finance & Admin. Mr.Musah Abu-Juam (Project Coordinator) Mr.Tabi Agyarko (Project Manager) I Mr. Charles M. Seniagyah (Financial Controller) Mr. Joseph Abbey (Procurement Manager) Mr. Mathew T. Ababio (Director PPMED) I Mr.Jospeh Osiakwan(Policy & Communication) Mrs. Evelyn Lartey (Project Accountant) Mr. Stephen Frimpong (Project Accountant) I Mr. Daniel Nsowah (Safeguard Focal Person) I ADDRESS Ghana Forest Investment Program Coordinating Unit I Ministry of Lands & Natural Resources (MLNR) P. 0. Box MB 212 Accra, Ghana. I I AUDITORS Ghana Audit Service Post Office Box MB 96 I Accra, Ghana BANKERS Bank of Ghana I I I 1 I I ------------------------- I AUDIT SERVICE I Incase of reply the I number and date of the letter sboWd be guoted I My Ref. No:.....R~§.l~!.f!.~{.~.r:J.!!'· 221 5 Good Gm•ernance a11d A ccountability P. 0 . Box ........ ~:..~.~................................ Your Ref. No:.•..•...•.•..•••.••..••...•.•.• ACCRA Tel: 133 (0) 302 664920/28/29 ································································ I Fu: 233 (0) 302 6751495 WEBSITE:www.gbaudit.org 24 JUNE, 16 ................................................20 ........... . I INDEPENDENT AUDITORS' REPORT TO THE CHIEF DIRECTOR, MINISTRY OF LANDS & NATURAL RESOURCES I AND IBRD (WORLD BANK) I Report on the project financial statements We have audited the accompanying project financial statements of the Government of I Ghana Forest Investment Programme (GFIP) which comprise the statement of financial position for the period ending 31December,2015, and the statement of sources and uses of funds for the period ended, as well as a summary of significant accounting policies I and other explanatory information as set out on notes 1 to 6. I Management's responsibility for the project financial statements The financial statements are the responsibility of the Project Coordinating Unit (PCU) I under the Ministry of Lands and Natural Resources (MLNR). The GFIP-PMU team is responsible for the preparation and fair presentation of these Project Financial Statements in accordance with generally accepted accounting standards and provisions I of the Grant Arrangement (SCF Grant No. TF018842) and the selection and application of accounting policies set out in Note 2. This responsibility includes designing, implementing and maintaining internal control relevant to the preparation of the GFIP I financial statements that are free from material misstatement, wh ether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting I estimates that are reasonable in the circumstances. Auditors' responsibility I Our responsibility is to express an independent opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards I of Supreme Auditing Institutions (IS.SAis) and the Grant Agreement and World Bank Project Implementation guidelines. Those standards require that we comply with the ethical requirements, and plan and perform the audit to obtain reasonable assurance I whether the project financial statements are free from material misstatement whether caused by fraud, other irregularity or error. I 2 I I I GOVERNMENT OF GHANA FOREST INVESlMENT PROGRAM STRATEGIC CLIMATE FUNDED GRANT PROGRAMME I (GRANTN0.1F018842) I An audit includes performing procedures to obtain audit evidence about the amounts and disclosures in the project financial statements. The procedures selected depend on I the auditor's judgment, including the assessment of the risks of material misstatement of the project financial sta tements, whether due to fraud or error. In making those risk assessments, the auditor considers internal controls relevant to the entity's preparation and fair presentation of the project financial statements 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 entity's internal control. An audit also I includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the management team, as well as evaluating the overall presentation of the financial statements. I We believe that we have obtained sufficient appropriate audit evidence to provide a basis for our audit opinion . I Opinion I In our opinion, the project financial statements present fairly, in all material respects, the financial position of GFIP as at 31 December, 2015, and the results of its operations I for the period and the accounting policies set out in Note 2 of the Project financial statements as well as GFIP Grant Arrangement (Grant No. TF018842). ./ I Report on compliance In addition, the PCU has complied, in all material respects, with the covenants of the I GFIP Grant Arrangement (Grant No. TF018842) for the period ended 31December, 2015. I Signed by I <&l o.-.s.: _v' MRS.ROBERTA ASSIAMAH-APPIAH I For and on behalf of the Auditor-General Date: I I I 3 I I I I GOVERNMENT OF GHANA FOREST INVESTMENT PROGRAM STRATEGIC CUMATE FUNDED GRANT PROGRAMME I (GRANTNO. lf018842) STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER, 2015 I SIX MONTHS NOTES US$ I Non-current assets I Accumulated Non capital expenditure 3 318,603.86 I Current assets Bank balances 4 1,458,345.99 I Ad vances to Implementing Agencies 5 222,050.15 Net Total Assets 2,000,000.00 Financed by I Proceeds from SCF Grant 6 2,000,000. 00 I 2,000,000.00 I I Signed: I Project Coordinator Financial Controlle Mr. Musah Abu-Juam Mr. Charles M. Seniagyah I Date: ;i..7 / e{, / ;;..ef,b Date: '}...:\- l IS\,~ t;," 1~ I ' co~\ROLLER fr\~r>-.\1\~tk~os & ~A1UP.AL I ~\~. Ofocs o uRCES The attached notes 1 to 6 form an integral part o f these fi nancial statements. I 4 I I - I G OVERNMENT OF GHANA FOREST INVESTMENT PROGRAM I STRATEGIC CLIMATE FUNDED GRANT PROGRAMME (GRANTN0. 1F018842) STATEMENT OF SOURCES AND USES OF FUNDS BY COMPONENT I FOR THE PERIODl JULY, 2015 T031 DECEMBER, 2015 I NOTES SIX MONTHS US$ I Sources of funds Balance as at 1st January 0.00 SCF Grant Funds 6 2,000,000.00 I 2,000,000.00 I Uses of funds Component 1: Policy & Institutional Reforms 0.00 I Coniponent 2: Pilot Investment for Improved 127,260.07 Forest and Landscape Management I Component 3: Innovation, Capacity Building & 140,277.63 Communication I Component 4: Project Monitoring & Evaluation 51,066.16 (318,603.86) I Net Cash Flow 1,681,396.14 I Bank and cash balance as at 31/12/2015 I Project Special Account 1,459,345.99 Unretired Advances to Implementation Agents 222,050.15 I Net Cash Available 1,681,396.14 I I The attached notes 1to 6 form an integral part of these financial statements. I I 5 I I I I GOVERNMENT OF GHANA FOREST INVESTMENT PROGRAM I STRATEGIC CUMATE FUNDED GRANT PROGRAMME (GRANT NO. TF018842) STATEMENT OF SOURCES AND USES OF FUNDS BY CATEGORY I FOR THE PERIOD 1 JULY, 2015 TO 31 DECEMBER, 2015 SIX MONTHS US$ US$ Sources of funds I Balance as at ] sl January SCF Grant Funds 7 0.00 2,000,000.00 2,000,000.00 I Uses of funds Componentl I 1.1 Stakeholders forum to validate preferred tree tenure 1.3 Bu ild policy consensus on benefit sharing 1.6 Guidelines for operationalizing the National Plantation 0.00 0.00 Strategy 0.00 1.7 Support implementation of Forest & Wildlife policy 0.00 1.8 Conduct extensive education and awareness creation 0.00 1.9 Developing guidelines for implementation and dissem ination 0.00 1.10Conduct stakeholders analysis and review roles 0.00 0.00 Componen t 2 I 2.1 Securing trees in key landscapes in community 2.2 Enhancing trees and smart cocoa practices 2.3 Support integrated landscape level planning 0.00 0.00 17,105.24 2.4 Reducing fur ther degradation of perm anent forest estates 39,578.98 I 2.5 Enhancing carbon stocks 2.6 Enrichment planting, nu rseries and native species 10,368.44 78,929.51 145,982.17 I Component3 3.1 Training 12,543.92 3.2 Implementation and mainstreaming of safeguards in project 9,759.19 I 3.3 Communication 3.4 Innovation 96,034.74 3,217.68 121,555.53 I Component4 4.1 Procurement of goods 4.2 Procurement process 0.00 0.00 4.3 Financial Management 3,956.43 I 4.4 Project monitoring and evaluation system 4.5 Project coordination 5,966.05 41,143.68 4.6 PMU consultants and assistant consultants 0.00 I 51,066.16 (318,603.86) I Net Cash Flow 1,681,396.14 I 6 I I I GOVERNMENTOFGHANAFORESTINVESTMENTPROGRAM I STRATEGIC CUMATE FUNDED GRANT PROGRAMME (GRANT NO. TF018842) Bank and cash balance as at 31/11/2015 I Project Special Account 1,459,345.99 222,050.15 I Unretired Advances to Implementation Agents Net Cash Available 1,682,337.37 I I The attached notes 1 to 6 form an integral part of these financial statements. I I I I I I I I I I 7 I I GOVERNMENT OF GHANA FOREST INVESTMENT PROGRAM STRATEGIC CU MATE FUNDED GRANT PROGRAMME I (GRANT NO. TF018842) STATEMENT OF ACTIVITY AND VARIANCE REPORT BY EXPENDITURE I FOR THE PERIOD 1 JULY, 2015 TO 31 DECEMBER, 2015 Budget Actual Variance I Project Budget Expenditure Component US$ US$ US$ I 1.1 Civil Works 0.00 0.00 0.00 I 1.2 Goods and Supplies 1,584,999. 93 0.00 1,584,999.33 1 .3 Consulting Services 480,000.00 0.00 480,000.00 I 1.4 Training, Tours and Workshop 699,999.99 108,551.59 591,448.40 I 1.5 Non-Consulting Services 35,000.01 0.00 35,000.01 1.6 Operational Cost 379,250.01 209,052.27 170,197.74 I Grand Total 3,179,249.94 318,603.86 2,860,646.08 I I I I I I I I 8 I I I I GOVERNMENT OF GHANA FOREST INVESTMENT PROGRAM I STRATEGIC CU MATE FUNDED GRANT PROGRAMME (GRANT NO. TF018842) NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER, 2015 1. GENERAL INFORMATION I The Government of Ghana was selected as a pilot country for the Forest Investment I Program (FIP) under the Climate Investment Fund (CIF) in March 2010. The Forest Investment Program (FIP), a targeted program under the Strategic Climate Fund (SCF) is to finance efforts to address the underlying causes of deforestation and I forest degradation and to overcome barriers that have hindered past efforts to do so. More particularly, the FIP supports developing countries' REDD+ efforts by I providing up-front bridge financing for readiness reforms and public and private investment identified through national REDD readiness strategy. I The Ghana Forest Investment Plan (GFIP) is designed in consultation with a variety of concerned stakeholders to develop approaches that address some of the deep I seated problems. The medium to long term expectation of the GFIP strategy is to strengthen institutional capacity in forest resources management, improve governance, strengthen the regulatory mechanisms, streamline tenure and tree I rights, improve local livelihoods and enhance resilience to climate change. The GFIP in Ghana targets three investment areas: (1) Mitigation actions related to I forests; (2) Investments outside the forest sector, primarily agriculture and cocoa sector, necessary to reduce the pressure on forests; and (3) Institutional capacity including forest management and information. The GFIP has four components as follows: I Component 1: Policy Reforms and Institutional Strengthening Component 2: Pilot Investments for Improved Forest and Landscape Management I Component 3: Innovation, Capacity Building and Communications Component 4: Project Management, Monitoring and Coordination The Project Coordinating Unit (PCU), mainstreamed in the Ministry of Lands and Natural Resources (MLNR), provides technical and administrative support while I senior management of MLNR exercises oversight responsibility. I 9 I I I GOVERNME NT OF GHANA FOREST INVESTMENT PROGRAM STRATEGIC CLIMATE FUNDED GRANT PROGRAMME (GRANT NO. TFO 18842) 2. SIGNIFICANT ACCOUNTING POLICIES I The following is a summary of the significant accounting policies adopted in the I preparation of the financial statements: Basis of accounting I The financial statemen ts ofGFIP are prepared on modified accrualbasis and under historical cost convention. Under the historical cost convention, assets and liabilities I are reflected or disclosed in the financial reports at the cost incurred or price paid at the time of transaction. I Property, plant and equipment Property plant & equipment acquired by PCUare stated at cost and shall not be depreciated. Cost of repairs and maintenance incurred on any fixed asset shall be expensed in the period during which it was paid. I Receipts and paym ents I Revenues are recognised when funds are received from the International Bank for Reconstruction and Development (World Bank) acting as Implementing Agency of the SCF and expenditures are accounted for in the year when goods and services are I incurred and paid. Non capitalexp enditure I This reflects actual cash expenditure accounting fo r expenses such as consultancy, trainings or seminar and operating costs incurred during the period. I Consulta ncy Services I This represents the cost of local and external consultants' service to provide expert skills to PCU in achieving FIP deliverables. I Training, Semina rs and Conferences I This represents the cost of organizing and attending training and workshops in consultative meetings with key stakeholders' activities including but not limited to civil society, private sector, local, regional and national government representatives I in support of the development and stakeholder validation consultations on project activities. I 10 I I I GOVERNMENT OF GHANA FOREST INVESTMENT PROGRAM I STRATEGIC CLIMATE FUNDED GRANT PROGRAMME (GRANTNO. TF018842) Operating Expenses I This relates to the adminis trative and office running cost of the PCU and other I 3. Implementation Agencies. Non capital expenditure I Opening balance 01/07/2015 Additions During the period Closing balance 31/12/2015 US$ US$ US$ I Consultancy Training, Seminars and 0.00 0.00 0.00 Conferences 0.00 I 08,551.59 108,551.59 I Operating expenses 0.00 210,052.27 210,052.27 I 4. Bankand cash balances .0...00 318,603.86 318,603.86 I Bank balances represents the available cash for project related disbursement activities. I 2015 US$ I Designated Special Account (US$) 1,458,685.57 Sub Designated account (Cedi Account) 660.42 I 5. Advances to Implementing Agencies 1,459.345.99 I This represents unretired advances to Implementation Agents during the period. I Implementation Agency Forest Research Institute of Ghana US$ 43,902.60 Forestry Commission 108,147.55 Ghana Cocoa Board 70,000.00 222,050.15 6. Finance by This represents IBRD-SCF disbursement withdrawal application receipts to PCUtowards GFIPwork planned activities. I 11 I I