AUDITORS' REPORT ON THE FINANCIAL STATEMENTS OF THE STRENGTHENING ACCOUNTANCY PROGRAM AT UNIVERSITY OF LIBERIA PROIECT IMPLEMENTED BY THE MINISTRY OF FINANCE & DEVELOPMENT PLANNING FOR THE FISCAL YEAR JULY 1. 2014 - IUNE 30,2015 MGI-MONBO & COMPANY, CERTIFIED PUBLIC ACCOUNTANTS AUDITORS' REPORT ON THE STRENGTHENING ACCOUNTANCY PROGRAM AT THE UNIVERSITY OF LIBERIA P126907 FOR THE YEAR ENDED JUNE 30, 2015 Contents Project Management Team 3 Report of the Auditors on the Financial Statements 4 Balance Sheet 5 Fund Receipts & Disbursements Statement 6 Cash-flows Statement 7 Notes to the Financial Statements 8-9 SOEs & Designated Account Reconciliation Statement 10 Report of the Independent Auditors on Designated Account Statement 11 Report of the Independent Auditors on Statement of Expenditure 12 Schedule of Expenditure Components 13 Management Letter 14 2 MGI - MONBO & COMPANY, CERTIFIED PUBLIC ACCOUNTANTS AUDITORS' REPORT ON THE STRENGTHENING ACCOUNTANCY PROGRAM AT THE UNIVERSITY OF LIBERIA P126907 FOR THE YEAR ENDED JUNE 30, 2015 PROJECT MANAGEMENT IMPLEMENTATION UNIT: MINISTRY OF FINANCE & DEVELOPMENT PLANNING PROJECT IMPLEMENTATION UNIT FINANCIAL MANAGEMENT: MINISTRY OF FINANCE & DEVELOPMENT PLANNING PROJECT FINANCIAL MANAGEMENT UNIT PROJECT OFFICIALS: Implementation Unit, 1. Mr. Bernard Jappah, Project Coordinator 2. Mr. Emmanuel Togba, Deputy Project Coordinator Project Financial Management Unit, Ministry of Finance & Development Planning 1. Dr. Christopher K. Sokpor, Unit Manager 2. Dr. Salia Hussein, Senior Project Accountant AUDITORS MGI MONBO & COMPANY Certified Public Accountants 2nd Floor King's Building Corner Broad & Gurley Streets Monrovia, Liberia 3 MGI - MONBO) & COMPANY, CERTIFIED PUBLIC ACCOUNTANTS MUMGI MONBO & COMPANY CERTIFIED PUBLIC ACCOUNTANTS Member Firm of MIDSNELL GROUP INTERNATIONAL August 19, 2015 Mr. Bernard Jappah Project Coordinator Strengthening Accountancy Program at the University of Liberia University of Liberia Monrovia, Liberia Dear Sir: AUDITORS' REPORT We have audited the accompanying balance sheet of the Strengthening Accountancy Program at the University of Liberia P126907 under the International Development Association Grant and the related statements of fund receipts and disbursements, cash flows for the year ended June 30, 2015. These financial statements are the responsibility of the management of the Project Implementation Unit of the Ministry of Finance & Development Planning and the Projects Financial Management Unit of the Ministry of Finance & Development Planning. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing (ISA) promulgated by the International Federation of Accountants (IFAC). These standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, proper books of accounts have been maintained and the financial statements referred to in the first paragraph above present fairly in all material respects, the financial position of the Strengthening Accountancy Program at the University of Liberia as of June 30, 2015, the Receipts and Disbursements and the cash flows for the year then ended, are in conformity with the Cash Basis International Public Sector Accounting Standard (IPSAS) promulgated by the International Federation of Accountants (IFAC), adopted by the Government of Liberia and the IDA guidelines stipulated in the agreement for the project. MGI-MONBO & COMPANY CERTIFIED PUBLIC ACCOUNTANTS King's Building 2nd Floor P.'O. Box 3196 Cell: +231-6-512549 Broad & Gurley Street Monrovia, Liberia E-mail: monboco@yahoo.com Monrovia, Liberia AUDITORS' REPORT ON THE STRENGTHENING ACCOUNTANCY PROGRAM AT THE UNIVERSITY OF LIBERIA P126907 FOR THE YEAR ENDED JUNE 30, 2015 Strengthening Accountancy Program at the University of Liberia Balance Sheet As at June 30, 2015 30-Jun-15 30-Jun-14 ASSETS EMPLOYED US$ US$ CURRENT ASSETS CASH AND BANK 26,495.81 120,339.87 TOTAL ASSETS 26,495.81 120,339.87 FUND BALANCES ACCUMULATED FUNDS BALANCE 26,495.81 120,339.87 TOTAL FUNDS BALANCE 26,495.81 120,339.87 ' %' PROJECT COGJ DIN TbR UNITJ_MANAGER, F UNIVERSITY F LIBERIA MINISTRY OF FINANCE & DEVELOPMENT PLANNING NOTES ON PAGES 8-9 FORM AN INTEGRAL PART OF THE FINANCIAL STATEMENTS 5 MGI - MONBO & COMPANY, CERTIFIED PUBLIC ACCOUNTANTS AUDITORS' REPORT ON THE STRENGTHENING ACCOUNTANCY PROGRAM AT THE UNIVERSITY OF LIBERIA P126907 FOR THE YEAR ENDED JUNE 30,2015 Strengthening Accountancy Program at the University of Liberia Fund Receipts and Disbursements Statement For the Period ended June 30, 2015 2015 2014 RECEIPTS Notes US$ US$ IDA Credit 7 - 314,380.51 Total Receipts - 314,380.51 DISBURSEMENTS Project Management & Audit 3 1,617.00 3,842.09 Developing Internationally Comparable Under Graduate & Graduate 4 83,076.06 86,967.97 Strengthening the capacity of the accounting faculty 5 9,151.00 216,885.58 Strengthening the Institutional Capacity of the Accounting Department 6 - 36,065.00 93,844.06 343,760.64 Excess of Disbursements over Receipts (93,844.06) (29,380.13) Beginning Balance as at July 1, 2014 120,339.87 149,720.00 Accumulated Fund as at June 30, 2015 26,495.81 120,339.87 NOTES ON PAGES 8-9 FORM AN INTEGRAL PART OF THE FINANCIAL STATEMENTS 6 MG1 - MONBO & COMPANY, CERTIFIED PUBLIC ACCOUNTANTS AUDITORS' REPORT ON THE STRENGTHENING ACCOUNTANCY PROGRAM AT THE UNIVERSITY OF LIBERIA P126907 FOR THE YEAR ENDED JUNE 30, 2015 Strengthening Accountancy Program at the University of Liberia Cash Flows Statement For the Period ended June 30, 2015 2015 2014 Operating Activities US$ US$ Credit Received from IDA - 314,380.51 Developing Internationally Comparable Under Graduate & Graduate (83,076.06) (86,967.97) Strengthening the capacity of the accounting faculty (9,151.00) (216,885.58) Strengthening the Institutional Capacity of the Accounting Department - (36,065.00) Project Management & Audit (1,617.00) (3,842.09) Net Operating Activities (93,844.06) (29,380.13) Net Increase/Decrease in Cash Balance (93,844.06) (29,380.13) Beginning Balance as at July 1, 2014 120,339.87 149,720.00 Net Cash Balance as at June 30, 2015 26,495.81 120,339.87 NOTES ON PAGES 8-9 FORM AN INTEGRAL PART OF THE FINANCIAL STATEMENTS 7 MGI - MONBO & COMPANY, CERTIFIED PUBLIC ACCOUNTANTS AUDITORS' REPORT ON THE STRENGTHENING ACCOUNTANCY PROGRAM AT THE UNIVERSITY OF LIBERIA P126907 FOR THE YEAR ENDED JUNE 30,2015 NOTES TO THE FINANCIAL STATEMENTS 1. Strengthening Accountancy Program at the University of Liberia The UL IDF grant has been prepared to specifically focus on strengthening the academic accountancy qualification which will feed into the profession by helping to improve the quality of accountancy education and the quality of graduates who will sit for the professional certifications exams (ATSWA and ICAG) administered by the LICPA. This focuses on the following components: a) Developing internationally comparable undergraduate and graduate accounting program b) Strengthening the capacity of the accounting faculty c) Strengthening the institutional capacity of the Accounting Department d) Project Management & Audit 2. Accounting Policies The following are the significant accounting policies adopted in the preparation of these financial statements: a) Basis of accounting The financial statements have been prepared on the historical cost convention and no procedures have been adopted to reflect either price changes or changes in the general level of inflation. b) Fixed assets Fixed assets represent the expenditure incurred in capital works and acquiring property and equipment. All fixed assets have been stated at the actual contracted cost of purchase or development. No depreciation is charged in the financial statements. c) Foreign Currency translations Transactions in foreign currencies (currencies other than the United States Dollar) are converted at the rate ruling at the date in which the transaction took place. Current assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at the balance sheet date and fixed assets at the rate of exchange ruling at the time of acquisition. Gains or losses arising on foreign currency transactions are credited to or charged against recurrent expenditure in the year in which they arise. d) Grants Grant is recognized on cash basis and credited to the project account when received. 8 MGI - MONBO & COMPANY, CERTIFIED PUBLIC ACCOUNTANTS AUDITORS' REPORT ON THE STRENGTHENING ACCOUNTANCY PROGRAM AT THE UNIVERSITY OF LIBERIA P126907 FOR THE YEAR ENDED JUNE 30, 2015 NOTE 3 2015 2014 Project Management & Audit US$ US$ Preparation of grant implementation reports 1,617.00 3,842.09 TOTAL 1,617.00 3,842.09 NOTE 4 2015 2014 Developing Internationally Comparable Under Graduate & Graduate US$ US$ Review of current accountancy program 83,076.06 28,989.32 Developing and implementing a revised accountancy program - 57,978.65 Total 83,076.06 86,967.97 NOTE 5 2015 2014 Strengthening the capacity of the accounting faculty US$ US$ Improving the quality of accountancy teaching 7,079.00 156,838.88 Developing a faculty exchange program & access to teaching materials arrangement 2,072.00 49,035.00 Designing & implementing a strategy for attracting and retaining full-time faculty - 11,011.70 Total 9,151.00 216,885.58 NOTE 6 2015 2014 Strengthening the Institutional Capacity of the Accounting Department US$ US$ Improving communication capacity of the accounting department - 14,485.00 Setting up of computer lab for students - 21,580.00 Total - 36,065.00 NOTE 7 2015 2014 IDA Credit US$ US$ Receipts - 165,541.98 Direct Payment - 148,838.53 Total - 314,380.51 NOTE 8 No fixed assets were acquired during the year under review. 9 MGI - MONBO & COMPANY, CERTIFIED PUBLIC ACCOUNTANTS AUDITORS' REPORT ON THE STRENGTHENING ACCOUNTANCY PROGRAM AT THE UNIVERSITY OF LIBERIA P126907 FOR THE YEAR ENDED JUNE 30,2015 Designated Account Reconciliation Statement For The Year Ended 30 June 2015 Account Number 02.2010-022050-01 Depository Bank : International Bank (Liberia) Ltd. Address Broad Street Monrovia, Liberia IDA Credit Number :TF 12494 LBR Currency US $ June 30, 2015 US$ Designated Account Balance at July 1, 2014 120,339.87 Advances/ Replenishment Transfers from IDA: - Total Funds in Designated Account 120,339.87 Less: Disbursement during the year (93,844.06) Balance as at June 30, 2015 26,495.81 10 MGI - MONBO & COMPANY, CERTIFIED PUBLIC ACCOUNTANTS U MGI MONBO & COMPANY CERTIFIED PUBLIC ACCOUNTANTS Member Firm of MIDSNELL GROUP INTERNATIONAL INDEPENDENT AUDITORS' REPORT ON THE DESIGNATED ACCOUNT STATEMENT FOR THE STRENGTHENING ACCOUNTANCY PROGRAM AT THE UNIVERSITY OF LIBERIA P126907 We have audited the accompanying project Designated Account Statement of the Strengthening Accountancy Program at the University of Liberia P126907 financed by the International Development Association Grant as stated in this report for the year ended June 30, 2015. The Designated Account Statement preparation and the fair presentation of this Statement is the responsibility of the Project Financial Management Unit (PFMU) at the Ministry of Finance & Development Planning, Republic of Liberia. This responsibility includes: designing, implementing, and maintaining internal control relevant to the fair presentation of the Designated Account Statement that is free from all material misstatement, whether due to fraud or error, selecting and applying appropriate accounting policies: and making accounting estimates that are reasonable in the circumstances. Our responsibility is to express an opinion on the financial statements based on our audit. Our audit was conducted in accordance with International Standards on Auditing promulgated by the International Federation of Accountants. These standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from all material misstatement. An audit includes examining on a test basis, evidence supporting the amounts disclosed in the financial statements. An audit also includes assessing the accounting principles used and estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides reasonable basis for our opinion. In our opinion, the receipts have been properly accounted for and withdrawals were made for the purpose of the project in accordance with the provisions of the international Development Association Grant. MGI-MONBO AND COMPANY CERTIFIED PUBLIC ACCOUNTANTS August 19, 2015 King's Building 2nd Floor P.'O. Box 3196 Cell: +231-6-512549 Broad & Gurley Street Monrovia, Liberia E-mail: monboco@yahoo.com Monrovia, Liberia * MGI MONBO & COMPANY CERTIFILD PI BLIC ACCOUNAN I S Member Firm of6IDS OUROLP NfFR\ 1)NAL INDEPENDENT AUDITORS' REPORT ON THE STATEMENT OF EXPENDITURE FOR THE STRENGTHENING ACCOUNTANCY PROGRAM AT THE UNIVERSITY OF LIBERIA P126907 We have audited the accompanying project Statement of Expenditure of the Strengthening Accountancy Program at the University of Liberia P126907 financed by the International Development Association Grant as stated in this report for the year ended June 30, 2015 and obtained all related information required. These financial statements are the responsibility of the Project Financial Management Unit (PFMU) at the Ministry of Finance & Development Planning. Our responsibility is to express an opinion on the financial statement based on our audit. Our audit was conducted in accordance with International Standards on Auditing. These standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from all material misstatement. An audit includes examining on a test basis, evidence supporting the amounts disclosed in the financial statements. An audit also includes assessing the accounting principles used and estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides reasonable basis for our opinion. In our opinion, the financial statements present fairly the view of the financial transactions of the Strengthening Accountancy Program at the University of Liberia for the year ended June 30, 2015 and are in accordance with the Cash Basis International Public Sector Accountant Standards (IPSAS). Additionally, with respect to the Statements of Expenditure (SOEs), sufficient supporting documentations have been maintained in accordance with Cash Basis International Public Sector Accounting Standards promulgated by the International Federation of Accountants and the requirement of the World Bank guidelines. The expenditures are eligible under the International Development Association Grant agreement. MGI-MONBO AND COMPANY CERTIFIED PUBLIC ACCOUNTANTS August 19, 2015 "1 hduflfk 2"'d - Broad & urh r g O Box 31% -6t5 2549 Monrovia, I Ier i on becowyahooco nI AUDITORS' REPORT ON THE STRENGTHENING ACCOUNTANCY PROGRAM AT THE UNIVERSITY OF LIBERIA P126907 FOR THE YEAR ENDED JUNE 30,2015 Strengthening Accountancy Program at the University of Liberia July 2014 - June 2015 Schedule of Expenditure Component Total Expenditure Amt. Paid NO. Component (USD) 1 Project Management & Audit 1,617.00 Developing international 2 comparable undergraduate & 83,076.06 graduate 3 Strengthening the capacity of the 915100 accounting faculty Strengthening the institutional 4 capacity of the accounting - department 93,44.06 13 MGI - MONBO & COMPANY, CERTIFIED PUBLIC ACCOUNTANTS