ADDITIONAL FINANCING FOR PALESTINIAN NGO-IV PROJECT FUNDED BY INTERNATIONAL DEVELOPMENT ASSOCIATION - IDA MANAGED BY NGO DEVELOPMENT CENTER - NDC STATEMENT OF PROJECT ACTIVITIES AND SCHEDULE OF THE MOVEMENTS OF THE PROJECT SPECIAL BANK ACCOUNT FOR THE PERIOD FROM JANUARY 1, 2015 TO DECEMBER 31, 2015 AND INDEPENDENT AUDITOR'S REPORT NGO Development Center (NDC) Additional Financing For Palestinian NGO-IV Project For the Period from January 1, 2015 to December 31, 2015 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 statement 6 pwc Independent Auditor's Report To the Board of Directors of NGO Development Center (NDC) Jerusalem - Palestine We have audited the accompanying statement of activities and schedule of movement of the Special Bank Account of the Project titled "Additional Financing For Palestinian NGO-IV" (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 January 1, 2015 to December 31, 2015, and a summary of significant accounting policies and other explanatory information. Management's Responsibility for the Financial Statement and the Schedule Management is responsible for the preparation of the financial statement and schedule in accordance with the basis of accounting described in Note (2), this includes determining that the modified cash basis of accounting is an acceptable basis for the preparation of the financial statement in the circumstances, and for such internal control as management determines is necessary to enable the preparation of the financial statement that is free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express an opinion on the financial statement and the schedule based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statement and the schedule are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statement and the schedule. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statement and the schedule, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation of the financial statement 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 includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates, if any, made by management, as well as evaluating the overall presentation of the financial statement. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. PricewaterhouseCoopers Palestine Limited, P.O.Box 1317, Masrouji Building 201, El-Bireh (Ramallah), Palestine T: +972 2 242 023o, F: +972 2 242 0231, Note: From Arab Countries Dial 970 instead of 972 www.pwc.com/middle-east 2 PWC Opinion In our opinion, the financial statement and the financial information in the Schedule of the Movements of the Project Special Bank Account are prepared, in all material respects, in accordance with the basis of accounting described in Note (2) and the terms of the agreements with the Bank to reflect the Project revenues and expenditures eligible to the Bank financing. Basis of Accounting Without modifying our opinion, we draw attention to Note (2) to the financial statement, which describes the basis of accounting. Tb ;,financial statement is prepared to provide information to the NDC and the Bank. As a r t' the financial statement may not be suitable for another purpose. Pricewater s pers Palestine Limited March , 16 R ah, Palestine PricewaterhouseCoopers Palestine Limited, P.O.Box 1317, Masrouji Building 201, El-Bireh (Ramallah), Palestine T: +972 2 242 0230, F: +972 2 242 023i, Note: From Arab Countries Dial 970 instead of 972 www.pwc.com/middle-east NGO Development Center (NDC) Additional Financing For Palestinian NGO-IV Project For the Period from January 1, 2015 to December 31, 2015 STATEMENT OF PROJECT ACTIVITIES (All amounts in USD) For the Period Cumulative from January from August 26, 1, 2015 to 2013 to Project Budget December 31, December 31, Notes (Refer to note 1) 2015 2015 Revenues IDA replenishments (3) 5,000,000 2,574,186 3,451,939 Total Revenues 5,000,000 2,574,186 3,451,939 Expenses Goods, consultants' services, (4) 378,100 90,276 133,982 including audit and training Sub-grants (5) 3,420,000 2,280,213 2,576,953 Incremental operating costs (6) 1,201,900 658,534 870,940 Sub-total Expenses 5,000,000 3,029,023 3,581,875 Less: accrued expense - (13,820) (13,820) Add: payments made to prior year accrued expenses - 13,685 Less: prepayments from prior year - (5,334) - Total Expenses - 3,023,554 3,568,055 (Deficit) Excess fund - (449,368) (116,116) Beginning fund balance - 333,252 - Add: due to NDC (7) - 206,705 206,705 Ending fund balance/Project Special Bank Account Balance - 90,589 90,589 - The notes on pages 6 to 10 are an integral part of the financial statement. Mr. Ghassan Kasabreh Ms. Rawan Abed Rabbo Director Finance Manager 4 NGO Development Center (NDC) Additional Financing For Palestinian NGO-IV Project For the Period from January 1, 2015 to December 31, 2015 SCHEDULE OF THE MOVEMENT OF THE PROJECT SPECIAL BANK ACCOUNT (All amounts in USD) For the Period from Cumulative from January 1, 2015 to August 26, 2013 to Notes December 31, 2015 December 31, 2015 Beginning cash balance 333,252 - Cash receipts (3) 2,574,186 3,451,939 Cash disbursements (2,816,849) (3,361,350) Excess of cash receipts over cash 90,589 90,589 disbursements Ending cash balance (8) 90,589 90,589 - The notes on pages 6 to 10 are an integral part of the financial statement. 5 NGO Development Center (NDC) Additional Financing For Palestinian NGO-IV Project For the Period from January 1, 2015 to December 31, 2015 NOTES TO THE FINANCIAL STATEMENT AND Schedule of the Movement 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. (OR 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 Palestinian NGOs and 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. During 2013, NDC entered into a financing agreement (Grant Number TF015033) with International Development Association (IDA or the Bank) concerning the project titled "Additional Financing for Palestinian NGO-IV " (the Project). Under this agreement; the IDA agreed to grant NDC an amount of USD 5,000,000 to implement the Project over the period of three years; from August 26, 2013 to September 30, 2016. Accordingly, the budget on the face of the financial statement represents the whole budget of the project. The objective of the Project is to provide social services through NGOs to those who are poor, vulnerable or marginalized and to strengthen the institutional capacity of these NGOs. The Project consists of the following parts/components: * Part 1: Grants for services delivery, * Part 2: NGO sector development, and * Part 3: Project management, monitoring and evaluation. 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 yearend accruals and prepayments b) Special Bank Account As required under the signed agreement with IDA under section IV A-1 which refers to the provisions of Article Ill of the Standard Conditions, 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) Additional Financing For Palestinian NGO-IV Project For the Period from January 1, 2015 to December 31, 2015 NOTES TO THE FINANCIAL STATEMENT AND SCHEDULE OF THE MOVEMENT 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 Inception from January 1, on August 26, 2015 to 2013 to December 31, December 31, Date 2015 2015 Previous Installments - 877,753 February 2, 2015 162,959 162,959 March 4, 2015 389,297 389,297 April 13, 2015 246,029 246,029 June 3, 2015 315,912 315,912 June 16, 2015 234,920 234,920 August 10, 2015 405,368 405,368 September 2, 2015 224,865 224,865 September 29, 2015 371,326 371,326 November 4, 2015 223,510 223,510 2,574,186 3,451,939 NOTE (4) GOODS, CONSULTANTS' SERVICES, INCLUDING AUDIT AND TRAINING For the Period Cumulative from January 1, from August 26, 2015 to 2013 to December 31, December 31, Date 2015 2015 Goods 3,596 3,596 Printings 3,814 3,814 Consultancies 63,726 92,972 Audit fees 19,140 33,600 90,276 133,982 7 � м� cr о оо и м и оо и� т и о оо о г� д• м о r о о � м д• м м а1 д• �t � п1 о г-t cV О�� и о0 cV и rn О� О м N 1� О О м О О tD и О м а1 М Oi О о0 .� N `�' N у О I� М д= l0 1� �1' О N г-1 О l(� д� N М �П' N' бi N' N Z >�с�и �ииоооомооиооллооииоод•ииии � ;,_, ev � '� О `-° й й N U 3 � у Q � � � � У и а ° г а т � � �оо�ид•ом�иг�оооо�д•то�о Q „ у l(> N м О г-I 01 О о0 о0 О и О ��t и 00 N и б1 01 V '�'j �-1 ,ti и N О М г-1 с-I О N д• 01 а-1 О М 01 м 01 О 00 с-1 N {у� о�. � О 00 N и Cfl 00 tn � М М и l0 д' N М и N 01 N N n. 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Q� Q т 1- а С7 1- NGO Development Center (NDC) Additional Financing For Palestinian NGO-IV Project For the Period from January 1, 2015 to December 31, 2015 NOTES TO THE FINANCIAL STATEMENT AND SCHEDULE OF THE MOVEMENT OF THE PROJECT SPECIAL BANK ACCOUNT (All amounts in USD) NOTE (6) INCREMENTAL OPERATING COSTS For the Period Cumulative from January 1, from August 26, 2015 to 2013 to December 31, December 31, Date 2015 2015 Staff-salaries and benefits 542,725 719,588 Rent, operation and maintenance of office and office equipment 51,741 64,186 Transportation and travel, including per them allowances 7,046 7,892 Vehicles running cost 13,312 17,619 Office supplies 9,472 11,605 Communication costs 13,396 19,332 Bank charges 529 681 Meeting costs 21089 6,838 Office administration including printing, translating and advertising 18,224 23,199 658,534 870,940 NOTE (7) DUE TO NDC This amount represents a transfer made by NDC to the special bank account to cover the Project expenses as a result of the shortage in the available funds in the special bank account until receiving the IDA transfers. NOTE (8) PROJECT SPECIAL BANK ACCOUNT BALANCE This represents the balance, of USID 90,589, outstanding in the Project special bank account as of December 31, 2015. This bank account details are as follows: Details Bank Bank of Palestine Branch Ramallah- Al Masyoun Account number PS52PALS047106000400013000001 10