I I I I I-- I ETRANSFROM GHANA PROJECT - I AUDIT REPORT {2018) I (P144140: IDA 5304-GH} I I I I I I I I I JUNE 24, 2019 MINISTRY OF COMMUNICATIONS I DIGITAL ADDRESS: GA-079-0539 I I I TABLE OF CONTENT I No. Details I 1. Introduction 1 I 2. Brief project description 1 I 3. Audit Opinion on the e-Transform Ghana Project I for the year ended 31 December, 2018 2 I 4. Balance Sheet as at 31 December, 2018 4 I 5. Operational Statement for e-Transform Ghana Project, (World Bank Funded) for the year ended 31 December 2018 5 I I 6. General Accounting Policy 6 7. Notes forming part of the operational statement fore-Transform I Ghana Project, (World Bank Funded) for the year ended 31 December 2018 6-8 I I I I I I I I MoC e-TRANSFORM GHANA PROJECT I INTRODUCTION I This report relates to the Operational Statement of the International Development Association (IDA) of the World Bank funded e-TRANSFORM GHANA PROJECT under the Ministry of 1 Communications of Ghana. I BRIEF PROJECT DESCRIPTION I On July 30, 2014 the Government of Ghana (GOG) and the International Development Association (IDA) of the World Bank entered into a financing agreement regarding cooperation within the ICT I sector. The e-TRANSFORM GHANA PROJECT is funded by the International Development Association (IDA) of the World Bank. Ministry of Communications coordinates the program, whilst I the National IT Agency (NITA) and Information Technology Enabled Service (ITES) provide technical support to the project. The five-year project which became effective on 19th September, I 2014 would close on 30th June, 2019 and is being funded with IDA credit facility of US$97 Million. I During the year under review, the International Development Association (IDA) of the World Bank I re-allocated the US$25 million originally earmarked for the implementation of the National ID Programme in 2016 as requested by the Government of Ghana through the Ministry of Finance's I letter no. WBU/E-TGP/Vol. 11 of 8th June 2016. The end date agreed upon in now 2020. The restricted project costs and financing are as in the table below: I I I I I I 1 I AUDIT SERVICE In case of reply the number and date of the letter EEJtBAue~eTRANSFORM. My Ref. No: ................................ .. M.96 Good Gov,•rnance Your Ref. No.: .... ........................ . and Accountability P. O. Box ............ ACCRA···· .................... . Tel: 233 (0) 302 664920/28/29 Fax: 233 (0) 302 6751495 ·················27JUNE····························l9······· I Website: www.ghaudit.org ........................................................... 20 ............. . I INDEPENDENT AUDITORS REPORT ON THE 2018 FINANCIAL STATEMENTS I We have audited the financial statement of e-TRANSFORM Project which comprises the; • Statement of Financial Position as at 31 December 2018 I • Statement of Financial Performance • Cash flow statement for the year ended and I • Notes to the Financial Statement including significant accounting policies and other explanatory information as set out in the report I I Respective responsibility of E-TRANSFORM and the Auditors The responsibility for the preparation of the accounts including adequate disclosure is that of e- TRANSFORM Project Management. The responsibility includes designing, implementing and l maintaining internal control relevant to the preparation and fair presentation of the Project I financial statements that are free from material misstatement whether due to fraud or error, selecting and applying appropriate accounting policies and making accounting estimates that are I reasonable in the circumstances. Our responsibility as Auditors is to express an independent opinion on the Project Financial I Statement based on our audit. I Opinion I In our opinion the financial statements are prepared in accordance with the laws and regulations. The accompanying financial statements present fairly in all material respects the financial position I of thee-TRANSFORM project as at 31 December 2018 and its financial performance and cash flow I 2 I I the year then ended in accordance with the Project Agreement Credit No. IDA 5304-GH and the stated accounting policies in Note 1 of the project financial statements. I Bases for Opinion I We conducted our audit in accordance with the International Standards of Supreme Audit Institutions (ISSAI's) and IDA Guidelines on project audits. Those standards require that we 1 comply with the ethical requirements plan and perform the audit to obtain reasonable assurance I whether the Project Financial Statement are free from material misstatements. Our audit involves performing procedures to obtain audit evidence about the amounts and I disclosures in the Project Financial Statements. I It also includes evaluating the appropriateness of accounting policies used the reasonableness of accounting estimates made by the Project Management Unit as well as evaluating the overall I presentation of the Financial Statement. I We believe that the audit evidence we have obtained is sufficient and appropriate to provide a I basis for our audit opinion. I I I cc: Hon. Minister I Ministry of Communications Accra I I I I 3 I I I MOC e-TRANSFORM PROJECT (IDA CREDIT NO 5304-GH) BALANCE SHEET AS AT 31 DECEMBER 2018. I ASSETS NOTE 2018 2017 I US$ US$ NON-CURRENT ASSETS I Fixed Assets 3 21,271,955.82 19,013,709.28 I CURRENT ASSETS Project Bank and Cash Account 4 1,400,614.93 2,258,246.54 I I TOT AL ASSETS 22,672,570.75 21,271,955.82 Current Liabilities I NET ASSETS 22,672,570.75 21,271,955.82 I FINANCED BY: I Accumulated Fund 5 22,672,570.75 21,271,955.82 I I I I I I I 4 I I OPERATIONAL STATEMENT FOR e-TRANSFORM PROJECT, I (IDA CREDIT NO 5304-GH) FOR THE YEAR ENDED 31 DECEMBER 2018. RECEIPTS NOTE 2018 2017 I Funds received- Designated 6 US$ 9,212,188.00 US$ 11,407,980.00 I Funds received -Direct 7 3,690,859.67 13,345,805.82 I Interest earned on accounts 8 88,542.15 I Total Funds available 12,903,047.67 24,842,327.97 I EXPENDITURE Equipment 9 136,887.06 I Goods 7,614,501.89 18,876,822.22 10 I Consultant's Service 11 1,544,903.77 2,123,369.34 I Non-Consultants Service llb 1,530,215.14 I Training-General 12 36,588.06 131,506.68 I Operating Cost 13 760,185.69 1,273,975.14 Bank Charges 14 16,038.19 41,520.99 I Total Expenditure 11,502,432.74 22,584,081.43 I Surplus 1,400,614.93 2,258,246.54 I -------·--.. I ......~ . ' . ..... ···········~········· I PROJECT ORDINATOR PROJECT ACCOUNT ANT I 5 I I NOTEl ACCOUNTING POLICIES The following are a summary of significant accounting policies adopted in the preparation of I the operational statement, which has been prepared on the basis of cash receipts and disbursement. I a) BASIS OF ACCOUNTING I The operational statement has been prepared on cash basis. b) RECEIPTS I This represents the total actual amount received from World Bank for the period. c) PAYMENTS I This represents the actual cash disbursements on e-Transform Ghana project activities I during the period under review. I NOTE2 NON-CAPITAL EXPENDITURE An amount of US$ 3,887,930.85 represents the total non-capital expenditure which is an I aggregation of: Consultant's Services US$ 1,544,903.77 I Non-Consultants' Services US$ l,530,215.14 Training-General US$ 36,588.06 I Operating Cost US$760,185.69 I Bank Charges US$ 16,038.19 I NOTE3 FIXED ASSETS The amount of US$21,271,955.82represents Property, Plant and Equipment (PPE) of the I Project. I NOTE4 CURRENT ASSETS The amount of US$1,400,614.93represents project bank and cash account balances. I NOTE 5 ACCUMULATED FUNDS I The total of US$ 22,672,570.75represents IDA Funding as at 31 December 2018. 6 I I I 2018 I US$ Balance as at Jan 1 21,271,955.82 I Cash Surplus for the period 1,400,614.93 Balance as at Dec 31 22,672,570.75 I NOTE 6 & 7 FUNDS RECEIVED FROM IDA (WORLD BANK) I The total amount of US$ 12,903,047.67 made up of funds received (Designated and Direct) I represents funds transferred by IDA, (Word Bank) to the Ministry of Communications (Project Implementation unit) so far. I NOTES INTEREST EARNED ON THE DESIGNATED ACCOUNT I There was no interest earned since BOG does not operate an interest account. I NOTE9 EQUIPMENT There was no expenditure on procurement of assets for the project in 2018. I I NOTElO GOODS The amount of US$ 7,614,501.89 represents the total of other non-current assets, such as I computer software and hardware for TICN, e-Immigration, e-Justice and e-Parliament for the period under review. I NOTEll CONSULTANCY SERVICES I The amount covered allowances paid to the project Management team and other consultants which accumulated, saw an increase of US$1,544,903.77 or 72.76% over the 2017 financial year I figure. I NOTEllb NON-CONSULT ANCY SERVICES - US$ l,530,215.14 I The amount covered allowances paid to the team void of the project Management team and other imminent consultants. I 7 I I NOTE12 TRAINING I The amount of US$ 36,588.06 represents expenditure incurred so far on the training of some officers of the Ministry to enhance the efficiency on the project management. I NOTE13 OPERATING COST I The amount of US$ 760,185.69 represents expenditure incurred on day to day running of the project coordinating secretariat. This includes Review of implementation progress report, I Facilitation of e-Transform Ministerial Budget, Fuel and Lubricants, Stationery, Printing of Data I Protection Commission certificates of registration and Repairs of equipment and Vehicles. I NOTE14 BANK CHARGES Bank charges and Commissions paid on operating the account over the period and witnessing I a cumulative increase of US$16,038.19 or by 38.63% over that of 2017. I NOTE15 PRIOR YEAR ADJUSTMENTS The accounts presented to the World Bank for the period 31 December 2017 had a line item, I Non-Capital Expenditure with an amount of US$ 3,570,372.15 added to its PPE figure. I Subsequently, this amount has been corrected to give a true and fair view of the accounts. Also, an adjustment to the tune of US$ 18,163.61 has been made considering the cumulative I Goods figure for the period under review to reflect its true figure. I I I I I I 8 I APPENDIX - FIXED ASSETS SCHEDULE ACCOUNT CUMULATIVE Adjustments 1st 2nd 3rd 4th CUMULATIVE DESCRIPTION AS AT JAN 1, Quarter Quarter Quarter Quarter ASAT 2018 DECEMBER 31, 2018 Fixed Assets Property (IT equipment 18,698,766.72 18,163.61 565,508.31 363,461.10 814,655.74 496,457.77 20,957,013.26 setups) Office Equipment 136,887.06 - - - - 136,887.06 Vehicles 178,055.50 - - - - 178,055.50 19,013,709.28 565,508.31 363,461.10 814,655.74 496,457.77 21,271,955.82 __________________ ..