THE WORLD BANK COMMUNITY AND SOCIAL DEVELOPMENT PROJECT (CSDP) (FEDERAL MINISTRY OF FINANCE) FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER, 2018 AUDITED BY OFFICE OF THE AUDITOR-GENERAL FOR THE FEDERATION Plot 273, Samuel Ademulegun Street, Central Business District, Abuja. TABLE OF CONTENTS CONTENTS PAGE CORPORATE INFORMATION 2-3 OVERVIEW OF THE PROJECT 4-6 AUDITOR'S REPORT 7-9 STATEMENT OF FINANCIAL POSITION 10 STATEMENT OF FINANCIAL PERFORMANCE 11 STATEMENT OF CASHFLOW 12 STATEMENT OF CHANGES IN NET ASSETS/EQUITY 13 STAEMENT OF BUDGET PERFORMANCE 14-18 NOTES TO THE ACCOUNTS 19-27 COMMUNITY AND SOCIAL DEVELOPMENT PROJECT FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER, 2018 CORPORATE INFORMATION MEMBERS OF THE FEDERAL PROJECT STEERING COMMITTEE 1. Permanent Secretary, Federal Ministry of Finance 2. Permanent Secretary, Ministry of Budget and Planning 3. Director General, National Bureau of Statistics 4. Permanent Secretary, Office of Secretary to Government of the Federation 5. Director General, National Orientation Agency 6. Permanent Secretary, Federal Ministry of Environment, Housing & Urban Dev. 7. Permanent Secretary, Federal Ministry of Women Affairs 8. Permanent Secretary, Federal Ministry of Water Resources 9. Two representatives of Civil Society Organization 10. Director, International Economic Relations of the Federal Ministry of Finance 11. National Coordinator, Community and Social Development Project - Secretary FEDERAL PROJECT SUPPORT UNIT MANAGEMENT TEAM 1. Dr. AbdulKareem A. Obaja - National Coordinator 2. Adebowale G. Fabowale - Head of Operations 3. Oduneye Adeniyi - Head, Monitoring Information Mgt. 4. Yahaya, Aliyu Muhammad - Senior Project Accountant 5. Abubakar Yusuf - Procurement Specialist 6. Mrs. Abiodun 1. Ogunsanya - Project Internal Auditor 7. Gadzama, F.K.U - Administrative Officer COMMUNITY AND SOCIAL DEVELOPMENT PROJECT FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER, 2018 PROJECT BANKERS Central Bank of Nigeria PROJECT SUPERVISING OFFICE The Presidency National Social Safety-net Coordinating Office (NASSCO) AUDITORS: Office of the Auditor-General for the Federation Audit House Plot 273, Samuel Ademulegun Street, Central Business District, P.M.B 128, Garki, Abuja, Nigeria COMMUNITY AND SOCIAL DEVELOPMENT PROJECT FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER, 2018 OVERVIEW OF COMMUNITY AND SOCIAL DEVELOPMENT PROJECT Federal and State Governments in Nigeria have embarked on different forms of poverty alleviation projects such as the construction and rehabilitation of roads, schools, hospitals and health centres, the provision of portable water and a host of others. However, the projects have not yielded the maximum desired results, largely because they were not properly focused and directed. Many of the supposed beneficiaries did not benefit reasonably, neither did they have the feelings of ownership of the projects. Most projects also had low survival rate and lacked accountability. Even though poor communities have potentials to contribute to identify, implement and sustain projects, they lack the required skills and funds. The Nigerian poor are the losers, since a large majority of them have become poorer. The Community and Social Development Project was therefore created to address this gap following the merger of Community-Based Poverty Reduction Project (CPRP) and Local Empowerment and Environmental Management Project (LEEMP). To achieve this goal, the Project Development Objective is to support empowerment of communities and Local Government Areas for sustainable increase access of poor people to improved social and natural resources and infrastructure services. COMPONENTS OF COMMUNITY AND SOCIAL DEVELOPMENT PROJECT The Project has the following components: (i) Project Coordination and Support (Federal) (ii) Local Government Areas and State Agencies Capacity Building (iii) Social community driven investment (SCDI) - Community Empowerment. (iv) Gender and vulnerable investment. TYPES OF PROJECT SUPPORTED BY COMMUNITY AND SOCIAL DEVELOPMENT PROJECT The Community and Social Development Project primarily finance Community Development Projects which focus on projects initiated by communities, and for which they are expected to make at least 10% resource contributions (contributions which may be in cash, kind, material or any combination thereof). The Community and Social Development Project is designed to support the development appraisal, coordination, implementation, supervision and evaluation of community-based Plans and the provision of financial grants thereof for: (i) Upgrading and construction of infrastructure in the education, health, electricity and water sectors; (ii) Construction of rural feeder and access roads, bridges and multipurpose community infrastructure; (iii) Improved delivery of and access to social and economic services, including a one time supply of drugs which can be administered as a revolving drug scheme and desks for classrooms; (iv) Improved natural resources management services; (v) Provision of safety net support. PROJECT FUNDING Following the closure of CSDP 1 which gulped USD200million, the Federal Government of Nigeria requested for additional funding from the World Bank. Though the overall project cost and fund flow over the implementation period of the CSDP Additional Financing life cycle of two years is estimated at USD176million, the World Bank approved USD140million as IDA component effective August, 17, 2015. The project has so far drawn down USD20,625,327.05 as follows: Federal Component: Initial USD1 million and USD214,614.75 by replenishment Joint States Component: USD19,410,712.31 PARTICIPATING COMMUNITY DEVELOPMENT AGENCIES (STATES) The following are participants in the Community and Social Development Project: 1. Abia State 2. Adamawa State 3. Akwa-lbom State 4. Bauchi State 5. Bayelsa State 6. Benue State 7. Cross River State 8. Ebonyi State 9. Edo State 10. Enugu State 11. Ekiti State 12. FCT-Abuja 13. Gombe State 14. Anambra State 15. Kogi State 16. Kebbi State 17. Katsina State 18. Kwara State 19. Niger State 20. Nasarawa State 21. Ondo State 22. Osun State 23. Oyo State 24. Plateau State 25. Taraba State 26. Yobe State 27. Zamfara State 28. Borno State THE AUDITOR-GENERAL FOR THE FEDERATION Audit House, Plot 273, Samuel Ademulegun Street, Central Business District, PM.B. 128, Garki - Abuja, Nigeria. The National Coordinator, Community and Social Development Project (CSDP), (Federal Ministry of Finance), 14, Moussa Traore Crescent, Off Thomas Sankara Street, Asokoro, Abuja. AUDIT OF THE COMMUNITY AND SOCIAL DEVELOPMENT PROJECT (CSDP) PERFORMED BY THE AUDITOR GENERAL FOR THE FEDERATION AUDITOR'S REPORT Opinion I have audited the financial statements of Community and Social Development Project (CSDP), for the year ended 31st December, 2018. These financial statements comprise the Statement of Financial Position, Statement of Financial performance, Cashflow Statement and Statement of Net Assets/Equity for the year then ended, and a summary of significant accounting policies and other explanatory information. In my opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Entity as at 31st December, 2018, and of its financial performance and its cash flows for the year then ended in accordance with International Public Sector Accounting Standards (IPSAS). Basis for Opinion I conducted the audit in accordance with International Standards for Supreme Audit Institutions (ISSAls). My responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements Section of my report. I am independent of the entity in accordance with the Code of Ethics for Supreme Audit Institutions together with the ethical requirements that are relevant to my audit of the financial statements and I have fulfilled my other ethical responsibilities in accordance with these requirements and the Code of Ethics. I believe that the audit evidences obtained are sufficient and appropriate to provide a basis for my opinion. Responsibilities of Management and Those Charged with Governance for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with IPSAS, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is responsible for assessing the Entity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the project or to cease operations, or has no realistic alternative but to do so. Those charged with governance are responsible for overseeing the entity's financial reporting process. Auditor's Responsibility for the Audit of the Financial Statements My objectives is to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with (ISSAls), 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 these financial statements. As part of an audit in accordance with Financial Audit Methodology (FAM), which is consistent with the Fundamental Auditing Principles (ISSAls 100-999) of the International Standards for Supreme Audit Institutions, I exercise professional scepticism throughout the audit. I also: * Identify and assess the risks of material misstatement of the financial statements, 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 my 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 controls. * 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 the Entity's internal control. * Evaluate the appropriateness of accounting policies uses and the reasonableness of accounting estimates and related disclosures made by management. * Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence, obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Entity's ability to continue as a going concern. If I conclude that a material uncertainty exists, I am required to draw attention in my auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify my opinion. My conclusions are based on the audit evidence obtained up to the date of my auditor's report. However, future events or conditions may cause the Entity to cease to continue as a going concern. * Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. I 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 I identify during my audit. I also provide those charged with governance with a statement that I have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be brought to bear on my independence, and where applicable, related safeguards. From the matters communicated with those charged with governance, I determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. I describe these matters in my auditor's report unless law or regulation precludes public disclosure about the matter or, when, in extremely rare circumstances, I determine that a matter should not be communicated in my report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. A. M. AYINE, FCA Auditor-General for the Federation June 17, 2019 COMMUNITY AND SOCIAL DEVELOPMENT PROJECT STATEMENT OF FINANCIAL POSITION AS AT 31ST DECEMBER, 2018 NOTES 2018 2017 N N ASSETS CURRENT ASSETS Cash and Cash equivalent 2 2,120,691,968.20 1,172,455,198.92 Receivable and prepayments 3 70,119,557.43 7,054,950.00 Total Current Assets 2,190,811,525.63 1,179,510,148.92 NON-CURRENT ASSETS Property, Plant and Equipment 11 2,236,781,855.50 Other non current asset 5 56,130,305.40 16,805,173.509.43 Total Non-Current Assets 56,130,305.40 19,041,955,364.93 Total Assets 2,246,941,831.03 20,221,465,513.85 LIABILITIES AND NET ASSETS CURRENT LIABILITIES Payable 6 12,415,433.57 11,715,951.45 NON CURRENT LIABILITIES Long Term Borrowing - . NET ASSETS 2,234,526,397.46 20,209,749,562.40 NET ASSETS/FUNDS Accumulated Surplus/(Deficit) 4 (45,479,024,160.65) (17,206,312,882.99) Exchange Difference (29,230,345.24) (29,401,248.55) IDA Credit (Loan) 7 33,584,425,356.55 23,907,503,809.14 Government Contribution Account 8 14,158,355,546.80 13,537,959,884.80 Total Liabilities & Net Assets/Fund 2,234,526,397.46 20,209,749,562.40 The Notes to the Financial Statements on Pages 19 - 27 form integral part of these financial statements. Dr. Abdulkareem Obaja (National Coordinator) ..................oordinato. ........ DATE... ..... . Mr. Yahaya Mohammed (Snr. Project Accountant ............DATE.. COMMUNITY AND SOCIAL DEVELOPMENT PROJECT STATEMENT OF FINANCIAL PERFORMANCE FOR THE YEAR ENDED 31ST DECEMBER, 2018 Notes 2018 2017 Revenue Expenditure: Consultancy service, 38,546,759.00 Non-Consultancy service, 51,148,185.67 training & workshop 190,276,684.50 1,250,459,374.69 Operating costs 189,549,936.53 464,085,603.30 Depreciation 154,255,212.31 Total Expenditure 623,776,778.01 1,714,544,977.99 Surplus/(Deficit) (623,776,778.01) (1,714,544,977.99) COMMUNITY AND SOCIAL DEVELOPMENT PROJECT STATEMENT OF CASHFLOW FOR THE YEAR ENDED 31ST DECEMBER, 2018 2018 2017 CASHFLOW FROM OPERATING ACTIVITIES Notes INFLOWS Surplus/(Deficit) for the year (623,776,778.01) (1,714,544,977.99) Items not involving movement of cash: Cash Inflow Adjustment (8,801,939,029.43) Depreciation 154,255,212.31 Exchange Difference 170,903.31 (292,931.55) TOTAL INFLOW (9,271,289,691.82) (1,714,837,909.54) Working Capital Changes: Receivables (63,064,607.43) 9,925,945.00 Payables 699,482.12 6,834,400.45 TOTAL OUTFLOW (62,365,125.31) 16,760,345.45 Net cash flow from operating activities (9,333,654,817.13) (1,698,077,564.09) CASHFLOW FROM INVESTING ACTIVITIES Property, Plant and Equipment - (519,659,009.50) Other Non-Current Assets (15,425,623.00) (3,138,551,212.43) Net cash flows from investing activities (15,425,623.00) (3,658,210,221.93) CASHFLOW FROM FINANCING ACTIVITIES IDA Loan 9,676,921,547.41 21,598,856.14 Government Contribution 620,395,662.00 2,859,301,639.80 Net cash flow from financing activities 10,297,317,209.41 2,880,900,495.94 Net cashflow from all activities 948,236,769.28 (2,475,387,290.08) Opening cash balance as at 1/1/2018 1,172,455,198.92 3,647,842,489.00 Closing cash balance as at 31/12/2018 2,120,691,968.20 1,172,455,198.92 COMMUNITY AND SOCIAL DEVELOPMENT PROJECT STATEMENT OF CHANGES IN NET ASSETS/EQUITY FOR THE YEAR ENDED 31ST DECEMBER, 2018 YEAR 2018 OPENING AMOUNT FOR THE Prior Year Adjustment YEAR 2018 CLOSING BALANCE (N) YEAR 2018 (N) (N) BALANCE (N) Accumulated Surplus/(Deficit) (17,206,312,883.00) (623,776,778.00) (27,648,934,499.65) (45,479,024,160.65) IDA Fund 23,907,503,809.14 9,676,921,547.41 33,584,425,356.55 Government Contribution Account 13,537,959,884.80 620,395,662.00 14,158,355,546.80 Exchange Differences (29,401,248.55) 170,903.31 (29,230,345.24) CHANGES IN NET ASSETS 2,234,526,397.46 COMMUNITY AND SOCIAL DEVELOPMENT PROJECT STATEMENT OF BUDGET PERFORMANCE FOR THE YEAR ENDED 31ST DECEMBER, 2018 Budget (N) Expenditure (N) Variance (N) Variance (%) GOODS: Computers: Anti-virus Licences (Annual Subscription) 675,000.00 455,625.00 219,375.00 0.68 Procurement of Laptops /Tablets 6,750,000.00 1,620,000.00 5,130,000.00 0.24 Procurement of MS SQL Server 2014 Enterprise Edition 3,000,000.00 - 3,000,000.00 Windows 10 Pro 640,000.00 378,000.00 262,000.00 0.59 Procurement of Wireless Switch 300,000.00 81,000.00 219,000.00 0.27 Procurement of Electronic Billboard 1,920,000.00 - 1,920,000.00 Procurement of Book Shelves 1,500,000.00 1,360,000.00 140,000.00 0.91 Procurement of Communication Equipment (Audio visuals) 550,000,00 546,000.00 4,000.00 0.99 Procurement of MIS Equipment and Server 1,000,000.00 - 1,000,000.00 HP Laserjet Printers 680,000.00 506.100.00 173,900.00 0.74 Giant Photocopying Machine 1,800,000.00 1,755,000.00 45,000.00 0.98 MS Office Software 350,000.00 81,000.00 269,000.00 0.23 Procurement of Laptops for Flexible Accounting Software 9,089,600.00 8,642,898.00 446,702.00 0.95 Sub -Total Goods 28,254,600.00 15,425,623.00 12,828,977.00 0.55 NON-CONSULTING SERVICES Office Accommodation Rental 30,000,000.00 26,250,000.00 3,750,000.00 0.88 Computer & MIS Equipment Maintenance 1,500,000.00 - 1,500,000.00 Vehicles and Equipment Maintenance/Repairs 4,000,000.00 3,683,167.00 316,833.00 0.92 Insurance of Vehicles 4,000,000.00 3,409,998.67 590,001.33 0.85 Subscription for MIS Webportal Hosting 4,000,000.00 3,960,000.00 40,000.00 0.99 Subscription for Internet Services 1,500,000.00 792,000.00 708,000.00 0.53 Provision of Security Services 4,500,000.00 4,233,000.00 267,000.00 0.94 Printing of Office Materials (Accounting Books, Letter Headed, etc) 300,000.00 94,400.00 205,600.00 0.31 Adverts and Publicity 1,500,000.00 - 1,500,000.00 Promotional Materials, Information Literature and Manuals Production of Promotional Materials 2,000,000.00 - 2,000,000.00 Production of CSDP Newsletter, Bulletin and 8,000,000.00 Photospeak 8,000,000.00 COMMUNITY AND SOCIAL DEVELOPMENT PROJECT STATEMENT OF BUDGET PERFORMANCE FOR THE YEAR ENDED 31ST DECEMBER, 2018 Budget (N) Expenditure (N) Variance (N) Variance (%) Production of Digital Roll-up Banner 1,600,000.00 - 1,600,000.00 Printing of GVG Guidance Note 500,000.00 - 500,000.00 Printing of GVG Graphical Community Handbook 1,200,000.00 - 1,200,000.00 Development of Community/Graphical GVG Integration Handbook 2,000,000.00 - 2,000,000.00 Production of CSDP documentary 2,000,000.00 665,000.00 1,335,000.00 0.33 FPSU Retreat 8,000,000.00 8,060,620.00 (60,620.00) 1.00 Sub -Total Non-Consulting Services 76,600,000.00 51,148,185.67 25,451,814.33 0.67 CONSULTING SERVICES Consultancy Consultancy for Upgrading/Redesign of Web- portal 5,000,000.00 3,354,000.00 1,646,000.00 0.67 Consultancy for Upgrading/Redesign of MIS Application 5,000,000.00 945,000.00 4,055,000.00 0.19 Consuitancy for Development of CDD Policy and Implementation Guide 2,000,000.00 - 2,000,000.00 Consultancy for Upgrade and Redesign of Financial Management Software 6,000,000.00 3,035,000.00 2,965,000.00 0.51 Consultancy for Revision of CSDP Communication Strategy 2,500,000.00 - 2,500,000.00 Consultancy for the Revision of Project Procurement Manual 1,000,000.00 - 1,000,000.00 Sub-Total 21,500,000.00 7,334,000.00 14,166,000.00 0.34 Consultancy/Technical Staff Fees Policy Analyst & Research Officer/Environmental Specialist 5,400,000.00 1,140,000.00 4,260,000.00 0.21 Safeguard Consultant 5,400,000.00 1,453,500,00 3,946,500.00 0.27 Monitoring & Evaluation Assistant 9,000,000.00 5,581,250.00 3,418,750.00 0.62 Management Information System Assistant 3,000,000.00 3,135,009.00 (135,009.00) 1,05 Operation Officer 2,400,000.00 2,280,000.00 120,000.00 0.95 Assistant Procurement Officer 1,620,000.00 - 1,620,000.00 Office Assistant - Finance 1,320,000.00 1,254,000.00 66,000.00 0.95 Office Assistant - Admin. 2,520,000.00 1,197,000.00 1,323,000.00 0.48 Store Assistant 1,080,000.00 1,026,000.00 54,000.00 0.95 Driver Mechanic 5,880,000.00 5,270,000.00 610,000.00 0.90 Cleaners 2,400,000.00 2,052,000.00 348,000.00 0.86 Productivity Allowance (5% of Monthly Salary) 2,001,000.00 1,081,500.00 919,500.00 0.54 Drivers Non-Accident Bonus 588,000.00 660,000.00 (72,000.00) 1.12 COMMUNITY AND SOCIAL DEVELOPMENT PROJECT STATEMENT OF BUDGET PERFORMANCE FOR THE YEAR ENDED 31ST DECEMBER, 2018 Budget (N) Expenditure (N) Variance (N) Variance (%) PMC 1,350,000.00 1,282,500.00 67,500.00 0.95 Sub-Total Consultant Fees 43,959,000.00 27,412,759.00 16,546,241.00 0.62 Sub-Total Consultancy 65,459,000.00 34,746,759.00 30,712,241.00 0.53 External Audit Field Visit, Allowance & Honourarium 3,800,000.00 3,800,000.00 1.00 Sub-Total Audit 3,800,000.00 3,800,000.00 - 1.00 Sub-Total for Consulting Services 69,259,000.00 38,546,759.00 30,712,241.00 0.56 OPERATING COSTS Meetings Annual Progress Review Meeting 627,500.00 - 627,500.00 Quarterly Progress Review Meeting 20,637,675.00 18,942,278.00 1,695,397.00 0.92 Adoption of Project Manuals 1,282,602.00 - 1,282,602.00 Joint Meetings and Others Organised at The Instance of World Bank 19,000,000.00 19,504,356.00 (504,356.00) 1.03 Meeting with CSDA Board and Supervisory Ministries 63,687,554.40 59,128,465.00 4,559,089.40 0.93 Sub Total Meeting 105,235,331.40 97,575,099.00 7,660,232.40 0.93 Visits & Travels Technical Support Visit 15,000,000.00 15,935,061.00 (935,061.00) 1.06 Field Monitoring Visits (M&E, FMS, Audit, Operation, Procurement, MIS) 15,000,000.00 10,538,520.00 4,461,480.00 0.70 Sub-Total Visits 30,000,000.00 26,473,581.00 3,526,419.00 0.88 Office Maintenance and General Services Fuel & Lubricant for Generator 800,000.00 520,000.00 280,000.00 0.65 Fuel & Lubricant for Motor Vehicles 3,000,000.00 2,145,869.27 854,130.73 0.72 Utilities (telephone, electricity, AEPB Bill, Water Board etc) 3,700,000.00 3,938,500.00 (238,500.00) 1.06 Postage/Courier 100,000.00 - 100,000.00 Stationeries 2,400,000.00 2,328,700.00 71,300.00 0.97 Computer Consumables (Toners, Batteries, External Drives, etc) 2,500,000.00 608,22S.00 1,891,775.00 0.24 Refreshments 5,SOO,000.00 4,443,2S0.00 1,0S6,750.00 0.81 Office Accommodation Maintenance 4,000,000.00 1,329,150.00 2,670,850.00 0.33 Journals/Periodicals/Newspapers 1,000,000.00 340,100.00 659,900.00 0.34 Sub-Total 23,000,000.00 15,6S3,794.27 7,346,205.73 0.68 Advocacy and Sensitization Radio and TV Coverage of CSDP Activities 2,500,000.00 90,000.00 2,410,000.00 0.04 COMMUNITY AND SOCIAL DEVELOPMENT PROJECT STATEMENT OF BUDGET PERFORMANCE FOR THE YEAR ENDED 31ST DECEMBER, 2018 Budget (N) Expenditure (N) Variance (N) Variance (%) National and Zonal Interactive Sessions, Sensitization and Advocacy 8,000,000.00 - 8,000,000.00 Sub-Total 10,500,000.00 90,000.00 10,410,000.00 0.01 Staff Productivity Allowance National Coordinator 3,000,000.00 3,000,000.00 - 1.00 Senior Monitoring & Evaluation Specialist 2,400,000.00 2,400,000.00 - 1.00 Senior Operations Specialist 2,400,000.00 2,400,000.00 - 1.00 Senior Project Accountant 2,025,000.00 2,025,000.00 - 1.00 Procurement Specialist 2,025,000.00 1,518,750.00 506,250.00 0.75 Management Information System Specialist 2,025,000.00 1,518,750.00 506,250.00 0.75 Gender & Vulnerable Specialist 2,025,000.00 - 2,025,000.00 Information and Comunications Officer 1,575,000.00 900,000.00 675,000.00 0.57 Project Internal Auditor 1,575,000.00 1,575,000.00 - 1.00 Administrative Officer 1,575,000.00 1,312,500.00 262,500.00 0.83 Project Accountant 1,575,000.00 - 1,575,000.00 Assistant Proiect Accountant 1,200,000.00 1,200,000.00 - 1.00 Finance Officer 1,200,000.00 1,200,000.00 - 1.00 Secretary 1,950,000.00 - 1,950,000.00 Arears of Productiity Allowance 12,952,860.00 12,699,690.00 253,170.00 0.98 Arears of Incentives 13,074,032.26 12,806,972.26 267,060.00 0.98 Interns' Allowance 1,140,000.00 1,140,000.00 - 1.00 Corpers' Allowancw 250,000.00 250,000.00 - 1.00 Sub-Total 53,966,892.26 45,946,662.26 8,020,230.00 0.85 Support to FPFMD 4,000,000.00 3,810,800.00 189,200.00 0.95 Sub-Total 4,000,000.00 3,810,800.00 189,200.00 0.95 Sub- Tota: Operating Cost 226,702,223.66 189,549,936.53 37,152,287.13 0.84 Training Staff Training 18,000,000.00 16,930,285.00 1,069,715.00 0.94 Training of GVG Officers on SSN Application 3,830,648.00 2,340,900.00 1,489,748.00 0.61 Training on FMS Software S,067,880.00 9,335,762.00 (4,267,882.00) 1.84 COMMUNITY AND SOCIAL DEVELOPMENT PROJECT STATEMENT OF BUDGET PERFORMANCE FOR THE YEAR ENDED 31ST DECEMBER, 2018 Budget (N) Expenditure (N) Variance (N) Variance (%) Risk Base / Result Base Audit Training for all CSDAs Internal Auditors 4,067,880.00 - 4,067,880.00 IPSAS W/Shop on FM System & Result based Audit 8,147,300.00 6,746,040.00 1,401,260.00 0.83 Zonal W/Shop on Environmental Screening & Safeguard Requirement for SA Staff (PO Supervision, PO M & E & 00s) 65,322,000.00 61,369,388.00 3,952,612.00 0.94 W/Shop on Webportal Management for CSDA Staff (GMs & MIS) 13,787,560.00 9,334,122.50 4,453,437.50 0.68 W/Shop on Effective Administrative Competence for ACs and GMs 63,625,720.00 54,276,825.00 9,348,895.00 0.85 W/Shop on MEVAPIS for SA Staff (MIS & M&E) 12,951,980.00 - 12,951,980.00 Foreign training of FMoF Staff 27,246,756.00 16,224,996.00 11,021,760.00 0.60 Foreign training CSDP 15,789,687.36 13,718,366.00 2,071,321.36 0.87 Sub- Total Workshop and Training 237,837,411.36 190,276,684.50 47,560,726.86 0.80 GRAND TOTAL BREAKDOWN 638,653,235.02 484,947,188.70 153,706,046.32 0.76 COMMUNITY AND SOCIAL DEVELOPMENT PROJECT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER, 2018 1. STATEMENT OF ACCOUNTING POLICIES The following are the significant accounting policies adopted by the World Bank Assisted Community and Social Development Project (CSDP) in preparing its project's Financial Statement: (i) Basis of Preparation The financial statements of Community and Social Development Project (CSDP) have been prepared in accordance with the International Public-Sector Accounting Standards (IPSAS) accrual basis of accounting. The financial statements are presented in Naira, which is the entity's functional currency and prepared under the historical cost convention. The preparation of the financial statements in conformity with IPSAS requires the use of certain critical accounting estimates. It also requires the Management of the project to exercise its judgements in the process of applying the provisions of the Project Implementation Manual (PIM) and reporting the amount of assets, liabilities, income and expenses. The actual results are likely to be different from the estimates. Changes in assumptions may have significant impact on the financial statements in the period the assumptions changed. Management of the project believes that the underlying assumptions are appropriate and that the Project's financial statements, therefore, present the financial position and the result fairly. The estimates and the underlying assumptions are subjected to review on an on-going basis. Any revision to the accounting estimates are revised and any further years affected. (ii) Revenue Recognition The project revenue is derived from International Development Association (IDA) loan facilities and the State Governments counterpart funds. The project recognizes revenue when the amount of income can be reliably measured and it is probable that future economic benefits will flow to the project. (iii) Inventory Inventories are valued at the lower of cost and net realizable value. (iv) Receivables Receivables are stated after making specific provision for debts considered doubtful of recovery. (v) Non-current Assets All non current assets are depreciated at 20% flat rate. The decision is temporarily made after serious consultations pending the review of the organization policy on depreciation. (vi) Foreign Currency Transactions in foreign currencies are converted to Naira at the rates of exchange ruling at the date of each transaction. Balances in foreign currencies are translated to Nairara at the exchange rates ruling at the Balance Sheet date and gains or losses arising on translation are credited to or charged to reserve in the period which they arise. COMMUNITY AND SOCIAL DEVELOPMENT PROJECT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER, 2018 $ N 2. Cash and cash equivalent IDA Federal 1,996.82 608,530.90 IDA Joint States 1,625,719.77 495,438,099.91 Interest on IDA - Federal - Interest on IDA - Joint States 774.49 236,025.83 Interest on IDA - States 33,675.14 10,262,498.37 Interest on GC - States 23,052,162.00 Drawdown Account IDA (Federal) 59,301,078.80 Drawdown Account IDA (Joint States) 304,742,246.91 Federal Government Contribution Account 33,764,486.46 State Government Contribution Account 609,890,466.76 Miscellaneous Receipts (Exchange rate difference) 170,903.31 Contribution Account - Local Government - Imprest Balance - States 900,442.83 IDA Fund (Joint - States) Account Received from FPSU 1,910,828.63 582,325,026.12 3,572,994.85 2,120.691982 The IDA Federal and IDA Joint States are maintained in USD. Their balances were translated to Naira @ N304.75/$1 2018 2017 3. Receiveables and Prepayments (Cash Advances) 48,557,057.43 1,560,450.00 21,562,500.00 5,494,500.00 70,119,557.43 7,054,950.00 In 2018, FPSU paid a rent of N28,750,000.00 for a period of two years, beginning from June 2018 to June 2020. Of this amount, N7,187,500.00 relates to six (6) months starting June to December, 2018 while the remaining N21,562,500.00 will cover a period of 18(eighteen) months to June in the year 2020. COMMUNITY AND SOCIAL DEVELOPMENT PROJECT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER, 2018 2018 4. Prior Year Accumulated Funds Adjustment: PRIOR YEAR ACCUMULATED SURPLUS/DEFICIT (17,206,312,882.99) SURPLUS/LOSS FOR THE YEAR 2018 (623,776,778.00) PRIOR YEAR ERROR OF COMPUTATIONS IN ACCUMULATED SURPLUS/DEFICIT (27,648,934,499.65) ADJUSTED ACCUMULATED SURPLUS/DEFICIT AS AT 31/12/2018 (45,479,024,160.65) NOTE: The sum of N16,805,173,509.43 was errorneously reported as other non-current assets in Statement of Financial Position for the year 2017 whereas the sum of N1,250,459,374.69 being part was expensed in the Statement of Financial Performance for the same year. Also, the schedule of Fixed Assets revealed that the closing balance as at 31st December, 2017 was N3,014,335,236,04 and not N2,236,781,855.50 reported in Statement of Financial Position for the year ended 31st December, 2017. The effects of these error of principles gave rise to the adjustment of N27,648,934,499.65 Deficit on the Accumulated Surplus/Deficit as at 31/12/2018. 2018 5 (a) GOODS: Expenditure (N) Anti-virus Licences (Annual Subscription) 455,625.00 Procurement of Laptops / Tablets 1,620,000.00 Windows 10 Pro 378,000.00 Procurement of Wireless Switch 81,000.00 Procurement of Book Shelves 1,360,000.00 Procurement of Communication Equipment (Audio visuals) 546,000.00 HP Laserjet Printers 506,100.00 Giant Photocopying Machine 1,755,000.00 MS Office Software 81,000.00 Procurement of Laptops for Flexible Accounting Software 8,642,898.00 Total 15,425,623.00 5 (b) NON-CONSULTING SERVICES: Office Accommodation Rental 26,250,000.00 Vehicles and Equipment Maintenance/Repairs 3,683,167.00 Insurance of Vehicles 3,409,998.67 Subscription for MIS Webportal Hosting 3,960,000.00 21 COMMUNITY AND SOCIAL DEVELOPMENT PROJECT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER, 2018 Subscription for Internet Services 792,000.00 Provision of Security Services 4,233,000.00 Printing of Office Materials (Accounting Books, Letter Headed, etc) 94,400.00 Production of CSDP documentary 665,000.00 FPSU Retreat 8,060,620.00 Total 51,148,185.67 5 (c) CONSULTING SERVICES: Consultancy for Upgrading/Redesign of Web- portal 3,354,000.00 Consultancy for Upgrading/Redesign of MIS Application 945,000.00 Consultancy for Upgrade and Redesign of Financial Management Software 3,035,000.00 Policy Analyst & Research Officer/Environmental Specialist 1,140,000.00 Safeguard Consultant 1,453,500.00 Monitoring & Evaluation Assistant 5,581,250.00 Management Information System Assistant 3,135,009.00 Operation Officer 2,280,000.00 Office Assistant - Finance 1,254,000.00 Office Assistant - Admin. 1,197,000.00 Store Assistant 1,026,000.00 Driver Mechanic 5,270,000.00 Cleaners 2,052,000.00 Productivity Allowance (5% of Monthly Salary) 1,081,500.00 Drivers Non-Accident Bonus 660,000.00 PMC 1,282,500.00 COMMUNITY AND SOCIAL DEVELOPMENT PROJECT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER, 2018 External Audit Field Visit, Allowance & Honorarium 3,800,000.00 Total 38,546,759.00 5 (d) OPERATING COSTS: Quarterly Progress Review Meeting 18,942,278.00 Joint Meetings and Others Organised at The Instance of World Bank 19,504,356.00 Meeting with CSDA Board and Supervisory Ministries 59,128,465.00 Technical Support Visit 15,935,061.00 Field Monitoring Visits (M&E, FMS, Audit, Operation, Procurement, MIS) 10,538,520.00 Fuel & Lubricant for Generator 520,000.00 Fuel & Lubricant for Motor Vehicles 2,145,869.27 Utilities (telephone, electricity, AEPB Bill, Water Board etc) 3,938,500.00 Stationeries 2,328,700.00 Computer Consumables (Toners, Batteries, External Drives, etc) 608,225.00 Refreshments 4,443,250.00 Office Accommodation Maintenance 1,329,150.00 Journals/Periodicals/Newspapers 340,100.00 Radio and TV Coverage of CSDP Activities 90,000.00 National Coordinator 3,000,000.00 Senior Monitoring & Evaluation Specialist 2,400,000.00 Senior Operations Specialist 2,400,000.00 Senior Project Accountant 2,025,000.00 Procurement Specialist 1,518,750.00 Management Information System Specialist 1,518,750.00 COMMUNITY AND SOCIAL DEVELOPMENT PROJECT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER, 2018 Information and Communications Officer 900,000.00 Project Internal Auditor 1,575,000.00 Administrative Officer 1,312,500.00 Assistant Project Accountant 1,200,000.00 Finance Officer 1,200,000.00 Arears of Productivity Allowance 12,699,690.00 Arears of Incentives 12,806,972.26 Interns' Allowance 1,140,000.00 Corpers' Allowance 250,000.00 Support to FPFMD 3,810,800.00 Total 189,549,936.53 5 (e) Training: Staff Training 16,930,285.00 Training of GVG Officers on SSN Application 2,340,900.00 Training on FMS Software 9,335,762.00 IPSAS W/Shop on FM System & Result based Audit 6,746,040.00 Zonal W/Shop on Environmental Screening & Safeguard Requirement for SA Staff (PO Supervision, PO M & E & OOs) 61,369,388.00 W/Shop on Webportal Management for CSDA Staff (GMs & MIS) 9,334,122.50 W/Shop on Effective Administrative Competence for AOs and GMs 54,276,825.00 Foreign training of FMoF Staff 16,224,996.00 Foreign training CSDP 13,718,366.00 Total 190,276,684.50 COMMUNITY AND SOCIAL DEVELOPMENT PROJECT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER, 2018 6.Payables 2018 2017 PAYE - 93,750.00 Withholding Tax 12,415,433.57 6,538,676.60 Vat - 5,083,524.85 12.415,433.57 11,715.951.45 7. IDA Credit Loan Account 2018 2017 As at 1st January 23,907,503,809.14 23,885,904,953.00 Additional Fund during the year 9,676,921,547.41 21,598,856.14 As at 31st December 33.584.425,356.55 23.907.503,809.14 2018 2017 8. Government Contribution Opening Balance 13,537,959,884.80 2,350,005,309.34 Contribution during the year: Federal Government 115,000,000.00 State Government Contribution 480,501,532.15 11,183,000,000.00 Interest on IDA - State 4,844,016.13 1,228,858.67 Interest on GC - State 17,287,510.82 2,247,578.67 Miscellaneous Receipts/Contribution - Federal (Refunds) 838,640.84 Miscellaneous Receipts/Contribution - Joint States (Refunds) 1,923,962.06 1,478,138.12 14,158,355,546.80 13,537,959,884.80 COMMUNITY AND SOCIAL DEVELOPMENT PROJECT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER, 2018 9. 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