1UI FFNNILSAEET O R 1AORITNIEPBCWR OMTGT 1EOAIPC RX,CTFRTE ER NE 11TE EBR21 1t I 9overnunt of ierra AtioANECommissin for Socia/Action Labour latensivA Pubi Work to Mitgot Ehol 1/mpact Project 91rant A& IfAMIZ3,17 Roif/N7 Statemenft For the year addY3fecember 29/8 ' Contents Page I General Information 1 The Background of the Project 2-3 Statement of Management's Responsibilities 4 Report of the Auditors 5-6 Statement of Resources and Expenditure 7 Statement of Comprehensive Income 8 Statement of Financial Position 9 Notes to the Financial Statements 10-13 Report of the Auditors on the Special Account 14 Special Account Statement 15 I I I I I I SovernmetofSierra Leone HOtiWNICommissiM for SocialAction L#bur latensive Publc Work to Aitigate Ebol Impact Project Girnt No. TFA912.7 Fiafncial Statements For the year nded 31flecember 2f/l GENERAL INFORMATION Official Address 12/14 Charlotte Street Freetown Sierra Leone Commissioner Mr. Alie Barlra Mansaray Mrs. Isatu Kamara (Deputy) Bankers Rokel Commercial Bank (Sierra Leone) Limited Siaka Stevens Street, Freetown Auditors Audit Service Sierra Leone 2nd Floor, Lotto Building Tower Hill Freetown Sierra Leone I I I I I lo vernment of Sierra Leone NHooas/Commission for Socia/Action Labour Intensive Public Work to MItyate Ebola Impact Project Groat No. TFAI9923 Financial Statements for the year ended 31ecember 26 Background Information on the project: I The Government of Sierra Leone through the National Commission for Social Action (NaCSA) has applied for and received a Grant of US 2,950,000 from the World Bank towards the cost of LIPW. The project will finance a package of cash transfers to 12,000 extremely poor households in the country. The Project Development Objective is to provide temporary employment to youth in poor households to help mitigate the socioeconomic impact of the EVD outbreak in Sierra Leone. The project beneficiaries: The project will directly benefit 12,000 youths, defined in Sierra Leone as those between the age of 15 and 35. The project will target youth in poor households, giving priority to those directly affected by Ebola. At least 30 percent of the project beneficiaries would be female, which is in line with the trends in gender participation in the existing LIPW program under YESP. Before the (EVD) outbreak, the Country was making important strides in establishing a social protection (SP) system capable of protecting vulnerable groups such as youth from shocks. In 2011, the government with the support of the World Bank and the United Nations Children's Fund (UNICEF), launched an SP Assessment to guide the development of an improved SP system. The assessment recommended that the government should focus on three main programs including Labour intensive Public works (LIPW) for youth in poor households and on establishing robust systems to increase the cost effectiveness and improve coordination between actors implementing SP and related programs. The LIPW is at the centre of all the government's efforts to build a coherent SP system capable of expanding in periods of emergencies. The project Development Objective (PDO) is to provide temporary employment to youths in poor households to help mitigate the socioeconomic impact of the EVD outbreak in Sierra Leone. Beneficiaries: The project will directly benefit 12,000 youths defined in Sierra Leone as those between the ages of 15 and 35. The project will target youths in poor households, giving priority to those directly and indirectly affected by the Ebola. I The project The project has three components Labour Intensive public Works (US$ 2.3 Million): The objective of this component would be to provide temporary employment for youths in poor households through labour intensive public works subprojects. Approximately 12,000 youths are expected to participate in the LIPW. The LIPW project will finance payment of wages for unskilled labour and creation of priority community infrastructure, including feeder road rehabilitation or maintenance and community agricultural projects. The subprojects would be implemented using a community driven approach and taking into account seasonality to coincide with the lean season when the need for safety net assistance is high. This components would finance the transfers to public works beneficiaries and the cost of materials and other Administrative costs incurred by the Communities in the implementation of the subprojects. Approximately 2 I Ntiorn/Commisson for ScislAction IA 1W Lbour Intensive Public Work Mityte Ebol Impact Projct Grant H& Tf AMI23 fnaftelis tatements for the ysar ended 31Iecomber 26/6 Background Information on the project (Continued) I 150 subprojects are expected to be supported under the project, with each subproject designed to accommodate up to 80 workers. Eligible beneficiaries would be entitled to work between 50 and 75 days depending on the design requirements of each subproject and would receive a transfer amount of Lel0,000 ( equivalent to US$2) for each days of work 1) System Development (US$0.3 Million): The objective of this component would be to support development of systems for targeting enrolment, payments and grievance redress to identify beneficiaries, track days worked and ensure that transfers reach the intended beneficiaries. This component would finance scale up of key SP system for LIPW notably: (1) common targeting mechanism; (2) Electronic systems for registration, attendance, verification and payments, and (3) independent anti corruption and monitoring measures. E 2) Project Management component (US$ 0.35): The objective of this component would be to support efficient project implementation. Specifically , the component would finance routine project management for the implementation of the public works subprojects and staff and operational costs related to supervision of the public works subprojects and delivery of each cash transfer to public works beneficiaries, including the following activities: (1) information, education and communication ( IEC)(2) M&E activities; (3) recurrent operational costs, including regional and district level supervision and implementation support; and (4) fiduciary aspects. I I I I I I lovernmentofSierrLoeoe IotionsCommission for SoHIActio Labour Intnosive Public Work to Afitat Ebolo Impact Project GrathN. IFA8/923 flaflcial Statementds For the year nodd31lecember 2M/S STATEMENT OF MANAGEMENT'S RESPONSIBILITIES It is the responsibility of management to prepare Financial Statements for each financial year which should show a true and fair view of the state of affairs of the Project and of its surplus or deficit for that year. In preparing these Financial Statements the Management is required to: I * select suitable accounting policies and apply them consistently; * make judgments and estimates that are reasonable and prudent; * state whether applicable accounting policies have been followed, subject to any material I departures disclosed and explained in the Financial Statement; * prepare the Financial Statements on a going concern basis unless it is inappropriate to presume that the Project will continue its activities Management is responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Project. They have a general responsibility for such steps as are reasonably available to them to safeguard the assets of the Project and to prevent and detect fraud and other irregularities. On behalf of Management The Commissioner The enior Director Support Services I I Eli 'TGovrnmst ofSierra Leone Haonoal/Commission for Sociul/Action L i Labour Intensiva Public Work to Mitgate aho/ Impact Project Grant N. TA9IZ3 flonciastatements For the year snded 31 December 2/8 REPORT OF THE AUDITORS - AUDIT SERVICE SIERRA LEONE TO THE GOVERNMNEMT OF SIERRA LEONE I have audited the accompanying Financial Statements of Labour Intensive Public Work to Mitigate Ebola Impact Project, International Development Bank (IDA) Grant Number: TFA01023 which is comprised of a separate statement of the financial position as at 31st December 2016, a separate statement of comprehensive income for the year ended 31s December 2016, a statement of resources and expenditure for the period as at 31st December 2016 and a summary of significant accounting policies and other explanatory notes as set out on pages 10 to 13. Responsibility of Management The responsibility for the prevention of fraud and error and other irregularities rests with the Management of the Project. Other responsibilities include: * designing, implementing and maintaining internal controls relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error; * selecting and applying appropriate accounting policies; and I * making accounting estimates that are reasonable in the circumstances. Responsibility of the Auditor General The Financial Statements of the Commission are subject to audit by the Auditor General in I accordance with section 119(2) of the Constitution of the Republic of Sierra Leone, 1991. My responsibility is to express an opinion on these financial statements based on my audit. I The audit was conducted in accordance with the International Standards of Supreme Audit Institutions. Those standards require that I comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether I due to fraud or error. In making those risk assessments; the auditor considers internal controls relevant to the project preparation and fair presentation of the financial 5 I bovernment of Srro Leons NOa!ICommission for SodalAction Labour latensive Public Work to Mitiqate Ehola Impact roject Grant &o 7FAlll23 fnanlcial/tSttmenlts For the year anded 1 fecember 2 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 project internal controls. An audit also includes evaluating the: * appropriateness of accounting policies used; * reasonableness of accounting estimates made by management; * overall presentation of the financial statements; and * adequacy of design and the effective implementation of internal controls. I I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion. I Unqualified Opinion In my opinion the financial statements of Labour Intensive Public Work to Mitigate Ebola Impact Project give a true and fair view, in all material respects, of the financial position as at 31st December 2016 and its financial performance for the year then ended. I RAUDITOR GENERAL Date &U-- < I I I 6 I lovrnmnt ofSierrN LEone H3ions8Commission for Soci/Action Labour Intensive Public ork to ft/yat Ebola Impot Project arrantN#. Iff.ll!23 Iancial Statements for the year endod 33l9cembmr 216 STATEMENT OF RESOURCES AND EXPENDITURE 12 months 3 months to31 to31 December December 15 Months Notes 2016 2015 Cumulative us $ us $ us $ Resources Opening Balance (362,681) Cash received from IDA 4b 2,185,515 - 2,185,515 Direct Payment IDA 4b 278,951 0 278,951 Bank Interest 777 0 777 2,102,562 - 2,465,243 I Expenditures Component 1 Cash Transfer 5a 1,016,396 132,844 1,149,240 Component 2 Development of System 5b 530,407 228,775 759,182 I Component 3 Project Management 5c 82,452 1,062 83,514 1,629,255 362,681 1,991,936 I Surplus/(Deficit) 473,307 (362,681) 473,307 I Represented by: Advance from SSNP 6 - (348,357) . Advance from Reparations 6 - (14,324) - Cash and cash equivalents 473,307 - 473,307 473,307 (362,681) 473,307 I overnment of Sierra Liona I- NaHoons/Commission for Social/Actiuon Labour Intensive Public Work to itgate aol Import Project Grant No. fFAMIIZ3 filancial Statements for the year ended 1 fecember 211 STATEMENT OF COMPREHENSIVE INCOME 12 months 3 months to 31 to 31 December December 2016 2015 Income Notes I Funding released from deferred income 3 1,629,255 362,681 11,629,255 362,681 Expenditure 1 Component 1 Cash Transfer 5a 1,016,396 132,844 Component 2 Development of System 5b 530,407 228,775 Component 3 Project Management 5c 82,452 1,062 I 1,629,255 362,681 Result for the period - These Financial State ents were approved on......... .............................................2017 ............................. The Commissioner I ...... ......................... The Senior Director Support Services 8 I ED 'G overnment of Sien*paise ktionalCommision for SociAction Labour Intmnsive Public Work to Aiuyate Ebolk Impact Project Erant Ho 7F4AI123 Flancial Statments for the year ended e3l Acember 2611 STATEMENT OF FINANCIAL POSITION 12 months 3 months to 31 to 31 December December Notes 2016 2015 Us $ Us $ Assets Deferred Expenses / Income Receivable from IDA 3 - 362,681 Cash and cash equivalents 473,307 - 473,307 362,681 Equity & Liabilities Payables to Other Projects 6 362,681 I Deferred Income 3 473,307 - 473,307 362,681 I I I These Financial Statements were approved on ........................................................ 2017 ....................................... ............. A . ......... The Com missioner ........................ ..................................The Senior Director Support Services I I foveroment of Sierra Leone Notional Commission for Socia/Action Labour latensive Public Work to ftate Fbola Impact Project Erantho. TFAI123 finanVCI/StaEMEnts For the yeor onded 31December 2016 I NOTES TO THE FINANCIAL STATEMENTS 1. REPORTING PROJECT The Government of Sierra Leone through the National Commission for Social Action (NaCSA) has applied for and received a Grant of US 2,950,000 from the World Bank towards the cost of LIPW. The project will finance a package of cash transfers to 12,000 extremely poor households in the country. The Project Development Objective is to provide temporary employment to youth in poor households to help mitigate the socioeconomic impact of the EVD outbreak in Sierra Leone. 2. PRINCIPAL ACCOUNTING POLICIES The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the Project's financial statement. a. Basis of accounting Statement of resources and expenditure are prepared on the basis of cash accounting whereby income is recognized on the receipt of cash and cash equivalents. Expenses recognized on the disbursement of cash and cash equivalents. The basis of income recognition is described in note (d) below. b. Foreign currency transaction Functional and presentation currency The functional currency is the local currency in Sierra Leone which is the Leone. The Project has however adopted the United States Dollars (US$) as its presentation currency as most of it transactions are dominated in US Dollars. Transactions in all other currencies are therefore considered foreign currency transactions. 10 ioverOment of Sierra Leone NationoCalommission for SocialAction Labour Intensive Pubi: Work to Mitigate hola Impact Project arot No. rFAI/71923 Financial Statements for the year ended 31I.cember 2911 NOTES TO THE FINANCIAL STATEMENTS (Continued) Transactions and balances Foreign currency transactions are translated into functional currency using the exchange rates prevailing on the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions denominated in foreign currencies are recognized in the Project's Statement of Comprehensive Income. I c. Non-current assets Plant and equipment are expensed on acquisition by the Co-ordinating Unit. The financial statements therefore have no non-current assets shown. d. Income Funding from the World Bank is held in a deferred income account when received and only recognized in the Project's Statement of Comprehensive Income when utilised. I I I I I I 11 P'08YOarMM81t ffSflrJa LioDJ7 Ntonslommission for Socil/Action Labour Intansive Public Work to Mltat, Eboolmpact Project rnt No. 7F III123 finoicialStatements For the yar ended 1Becember 2016 NOTES TO THE FINANCIAL STATEMENTS (Continued) I 12 months 3 months to 31 to 31 December December 2016 2015 Us $ Us $ 3 Deferred income/Expense Opening Balance (362,681) Cash received from IDA 2,185,515 Direct payment to beneficiaries 278,951 Bank Interest - Release to Income statement (1,629,255) (362,681) 472,530 (362,681) Represented By: Cash & Bank 473,307 Advances from other Projects - (362,681) Balance as at 31 December 473,307 (362,681) 4a. Disbursement Total Grants Receivable 2,950,000 2,950,000 Amount Disbursed (2,464,466) - Amount yet to be disbursed 485,534 2,950,000 4b Disbursement During the year LIPW 01 - Direct 160,426 - LIPW 02 - Direct 18,525 - LIPW 04 - Special Account 123,479 - LIPW 05a - Special Account 2,062,036 - 2,464,466 - 12 I Government of Sierr Leone o Ntlonal CommIssion for Socia/ Acton Labour Intonsive Public Work to MItats Ebola Impact Prooect GrntNo. IFAI923 finoncial Statements For tho yor oded 3fleoember 2015 NOTES TO THE FINANCIAL STATEMENTS I 12 months 3 months to 31 to 31 December December 2016 2015 5c US$ US $ Component 3 Operating costs 40,364 1,062 ACC/ GRM 14,713 - Staff Salaries 9,900 - Monitoring and Evaluation 9,975 - Goods 7,500 - 82,452 1,062 I 6. Advances from other Projects Advance from SSNP (348,357) Advance from Reparations (14,324) I I I I (362,681) I 13 I l' overnment of Sir Leone Hol/Commission for SocialAction Labour Intonsive Public Work to Aiyetv Ebolu lmpact Project 0r-Bt9A. XFAI9203 finailBState-MenIt for thy yoar ened3.71fecmbor 29/6 REPORT OF THE AUDITORS ON THE SPECIAL ACCOUNT STATEMENT, US DOLLLAR ACCOUNT NUMBER 17-011773091-01 I have audited the accompanying Special Account numbered 17-011773091-01 established under the provision of the IDA Project for the year ended 31st December 2016 as set out on page 15. I conducted the audit in accordance with the Standards of the International Organization of Supreme Audit Institutions (INTOSAI) and International Federation of Accountants (IFAC). Those Standards require that I plan and perform the audit to obtain reasonable assurance that the Special Account statements are free from material misstatement. The accompanying Special Account Statement was prepared on the basis of cash deposited and withdrawals for the purpose of complying with the project agreement. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for Imy opinion. Opinion In my opinion the receipts are properly accounted for and the withdrawals were made for the purpose of the project in accordance with the Grant agreement and IDA disbursement procedures. The accompanying special account statement give a true and fair view of the ending balance for the year ended 31st December 2016. In accordance with the provisions of the terms of reference of the audit, I confirm as follows: I Withdrawals from the Special Account during the period under review were made for eligible expenditure. * The Special Account of the project has been maintained in accordance with the provisions of the financing agreement. Ir'AUDITOR GENERAL Date o-'C4 U.'e fZ14 14 I lovernment of Sier* Leone Hoan I C,mmission for SocialActon Labour ltensive Pub/ic Workto M tgate Ebola mpat Project grent Ha IFAlll23S For the year ended 3/1December 201 SPECIAL ACCOUNT STATEMENT, US DOLLAR ACCOUNT NUMBER 17-011773091-01 Account No: 17-011773091-01 Depository Bank Rokel Commercial (Sierra Leone) Bank Address Siaka Stevens Street, Freetown Grant Number TFAO1023 Currency United States Dollars 2016 $ I Initial Deposit 123,479 Replenishment 2,062,036 Bank Interest 777 Project Payments (1,712,985) Closing Balance 473,307 I I I I