Chinwe Agatha Ukpong-Bassey From: Uchechi Chizomam Oloba Sent: Wednesday, June 24, 2020 4:49 PM To: Chinwe Agatha Ukpong-Bassey Cc: Atey Agam Yari David Subject: FW: Reports and financial statements Attachments: Bauchi State WBA-SEPIP 2019 FINANCIAL STATEMENTS-2.pdf Dear Chinwe, Attached is the audited report for Bauchi SEPIP. Thanks, Uchechi From: Aminu Kakudi Sent: Wednesday, June 24, 2020 4:25 PM To: Uchechi Chizomam Oloba Cc: Olatunde Adetoyese Adekola ; Eucharia Nonye Osakwe Subject: Fw: Reports and financial statements [External] Good Afternoon Madam Uchechi Find attached the reports and financial statements in respect of Bauchi SEPIP project for the year ended 31 December 2019 for your information and further action. The hard copies are being sent under a separate cover. Best regards. Aminu Kakudi Project Accountant Bauchi SEPIP ----- Forwarded Message ----- From: M. K. Akobi To: Aminu Kakudi ; Adamu Aliyu Sent: Monday, June 22, 2020, 04:42:01 PM GMT+1 Subject: Re: Reports and financial statements Dear Sir, Please find attached the financial statements -- MARCUS K. AKOBI FCA PARTNER ZION HOUSE, 46 ALAAFIN AVENUE, OLUYOLE ESTATE, P.O. BOX 36808, DUGBE IBADAN. OYO STATE. NIGERIA 1 +234 8033482586 2 BAUCHI STATE WORLD BANK ASSISTED STATE EDUCATION PROGRAM INVESTMENT PROJECT REPORTS AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2019 BAUCHI STATE WORLD BANK ASSISTED STATE EDUCATION PROGRAM INVESTMENT PROJECT REPORTS AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2019 CONTENTS PAGE Corporate information 1 Auditors’ report 2 Accounting policies 4 Balance sheet 5 Statement of sources and uses of funds 6 Special account activity statement 7 Notes to the financial statements 8 Statement of special account 10 Summary of statement of expenditures 11 - Page 3 - BAUCHI STATE WORLD BANK ASSISTED STATE EDUCATION PROGRAM INVESTMENT PROJECT CORPORATE INFORMATION Project Implementation Unit: Muhammed Datti Umar - Project Coordinator/died 14 May, 2020 Muhammed Sani Ibrahim - Procurement Officer/Acting project coordinator Muhammed Abubakar Mudi - Project Internal Auditor Sager Babamaji - Monitoring and Evaluation Officer/ Communication Officer Aminu Abubakar Kakudi - Project Accountant Adamu Aliyu Abdullah - PFMU Head Abdullahi Musa Gani - Assistant Project Accountant Project Office: C/O Ministry of Education Railway Road, Bauchi, IDA Credit №: CR 52200 and CR 58480 Bankers: Polaris Bank (Formerly Skye Bank Plc.) Auditors: Bakertilly Chartered Accountants, Zion House, No. 46, Alaafin Avenue, Opposite Ratcon Construction, Oluyole Industrial Estate, Ibadan. - Page 4 - - Page 5 - - Page 6 - BAUCHI STATE WORLD BANK ASSISTED STATE EDUCATION PROGRAM INVESTMENT PROJECT STATEMENT OF ACCOUNTING POLICIES The following are the significant accounting policies followed in recording transactions and in reporting the results of operations of the Project: 1. Accounting convention The accounts are prepared under the historical cost convention. 2. Basis of accounting The cash basis was adopted in the preparation of Project’s Financial Statements. 3. Fixed assets and depreciation (a) Fixed assets are those intended for use over a period exceeding one accounting year whose value per unit is not below N100,000. (b) Items with respective unit costs below N100,000 are classified as “Special Project Assets” and included in a Special Project Assets Register. (c) In applying the capitalization policy, all related (landed) costs and installation costs are included in the acquisition cost of the fixed asset item. (d) Capital expenditure on contract works will be included on the basis of valuation certificates including retention. (e) No depreciation is charged on the project’s fixed assets as there are no revenues to be matched against such charges. 4. Inventory Inventory is valued at the lower of cost and net realizable value. 5. Debtors Debtors are stated after making specific provision for debts considered doubtful of recovery. 6. Foreign currency Income and expenditure items in foreign currencies are recorded in Naira at the rates ruling at the transaction dates. Assets and liabilities expressed in foreign currencies are converted to Naira at the rates ruling at the balance sheet date and gains or losses on such conversions are credited or charged to reserve in the period which they arise. - Page 7 - BAUCHI STATE WORLD BANK ASSISTED STATE EDUCATION PROGRAM INVESTMENTPROJECT BALANCE SHEET AS AT 31 DECEMBER, 2019 2019 2018 Notes N N Fixed assets 2 623,310,418 422,768,945 Investments 3 2,368,733,261 1,531,030,173 Current assets: Operating costs 4 311,565,777 236,275,873 Cash and bank balances 5 101,723,627 157,814,890 413,289,404 394,090,763 3,405,333,083 2,347,889,881 ========== ========= Financed by: Capital and reserves – IDA credit 6 3,405,330,583 2,347,887,381 Miscellaneous receipts 2,500 2,500 3,405,333,083 2,347,889,881 =========== =========== PROJECT MANAGER ……………………………… HEAD – PFMU ……………………………… The accounting policies on page 4 and the notes on pages 8 and 9 form part of these financial statements. - Page 8 - BAUCHI STATE WORLD BANK ASSISTED STATE EDUCATION PROGRAM INVESTMENT PROJECT STATEMENT OF CASH FLOW FOR THE YEAR ENDED 31 DECEMBER, 2019 – IN LOCAL CURRENCY Year 2019 Cash receipts: N IDA fund 1,057,443,202 Total financing 1,057,443,202 Expenditure by categories: Books 184,104,000 Communication and Office equipment 16,437,473 200,541,473 …………… Capacity building – Teachers Development 278,936,075 Overseas, regional Local Travel workshop and study tour 558,767,013 837,703,088 ---------------- Incremental operating costs – Local Training 12,975,605 Printing and stationeries 15,000,832 Transport and travelling 7,873,191 Office and general expenses 4,370,516 Repairs and maintenance of vehicle & Gen. 29,033,260 Insurance 1,245,000 PFMU Contribution 2,326,500 External Audit 800,000 Entertainment 1,665,000 75,289,904 Total expenditure (1,113,534,465) Receipts less expenditure (56,091,263) Cash and cash equivalent at 1/1/2019 157,814,890 Cash and cash equivalent at 31/12/2019 101,723,627 ========= Represented by: Closing cash and bank balances: IDA special account 10,712,407 Drawdown Account 90,319,249 Advances 691,971 101,723,627 ========= - Page 9 - BAUCHI STATE WORLD BANK ASSISTED STATE EDUCATION PROGRAM INVESTMENT PROJECT SPECIAL ACCOUNT ACTIVITY STATEMENT AS AT 31 DECEMBER, 2019 (US $ ACCOUNT) A/C № 1771464-085 – SKYE BANK PLC Year 2019 $ 1. Cumulative advances to the end of current reporting year 31,055,957.46 2. Cumulative expenditure to end of last reporting year ` 27,029,106.67 3. Outstanding advances to be accounted (line 1 minus line 2) - 4,026,850.79 ========== 4. Opening SA balance at the beginning of reporting year 328,262.33 5. Add/Subtract: Cumulative adjustments (if any) - 6. Advances from World Bank during reporting year 3,696,588.46 4,026,850.79 7. Outstanding advances to be accounted for (add lines 4 and 6) 8. Closing SA balance at end of current reporting year (as of December 31, 2019) 326,406.55 9. Add/Subtract: Cumulative adjustment - 10. Expenditure for current reporting year 3,548,827.41 11. Add Lines 9 and 10 3,548,827.41 12. Activity closing balance (December 31, 2019) 328,262.33 13. Difference (if any) less interest on SA 1,855.78 14. Actual SA balance 326,406.55 ======== - Page 10 - BAUCHI STATE WORLD BANK ASSISTED STATE EDUCATION PROGRAM INVESTMENT PROJECT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2019 1. The Project The Federal Republic of Nigeria entered into a credit agreement with International Development Association. The Project Credit Number 52200 and 58480 AF UNI became effective in Bauchi State in August 2013. The principal objective of the project is to: - improve teacher effectiveness through better deployment based on needs - improve regular measurement of student learning achievements - Strengthening school-based management Committee participation and capacity for supporting schools management and accountability Cumulative Cum. Bal. Year 2019 balance to 2019 2018 2. Fixed assets N N N Office furniture and fittings and equipment - 324,661,060 324,661,060 Communication equipment 16,437,473 98,912,358 82,474,885 Motor equipment - 15,633,000 15,633,000 Books 184,104,000 184,104,000 - 200,541,473 623,310,418 422,768,945 ========= ========= ======== 3. Investments Capacity building: Regional training, workshops and study tour 558,767,013 1,340,588,283 781,821,270 Teachers’ Development 278,936,075 1,028,144,978 749,208,903 837,703,088 2,368,733,261 1,531,030,173 ========= ========== ========= 4. Operating costs Local Training 12,975,605 135,241,020 122,265,415 Printing and stationeries 15,000,832 42,611,252 27,610,420 Transport and travelling 7,873,191 51,779,203 43,906,012 Office and general expenses 4,370,516 21,738,305 17,367,789 Bidding advertisement and evaluation - 1,205,580 1,205,580 Repairs and maintenance of vehicle & Gen. 29,033,260 33,604,675 4,571,415 Insurance 1,245,000 5,560,236 4,315,236 PFMU Contribution 2,326,500 10,457,700 8,131,200 External Audit 800,000 1,600,000 800,000 Telephone and postage expenses - 18,200 18,200 Entertainment 1,665,000 7,749,606 6,084,606 75,289,904 311,565,777 236,275,873 ======== ========= ========= - Page 11 - Cumulative Cum. Bal. balance to 2019 2018 N N 5. Cash and bank balances IDA domiciliary account 10,712,407 139,036,974 Drawdown Account 90,319,249 18,777,916 Petty cash 691,971 - 101,723,627 157,814,890 ========= ========= 6. IDA credit Balance brought forward - 2,347,887,381 1,476,319,626 Amount drawn during the year 1,057,443,202 1,057,443,202 871,567,755 1,057,443,202 3,405,330,583 2,347,887,381 ========== ========== ========== 7. Miscellaneous receipt Tender fees - 2,500 2,500 ====== ==== ==== 8. Events after reporting date At the end of March, 2020, the President of the Federal Republic of Nigeria mandated a lockdown of Lagos and Ogun State in reaction to the global pandemic ‘Covid 19’. All companies in Lagos and Ogun states were accordingly mandatorily closed down. A total lockdo wn was also pronounced on Kano State on 6 May 2020. Other states also announced partial lockdowns and restrictions on inter-state movements as well as social distancing measures. These have limited the scope of the audit engagements. We could not have access to all the documents, physical verification of the assets procured during the year could not be carried out. We however, reviewed samples of the project documents as representation of the documents kept during the year under review. - Page 12 - BAUCHI STATE WORLD BANK ASSISTED STATE EDUCATION PROGRAM INVESTMENT PROJECT STATEMENT OF SPECIAL ACCOUNT AS AT 31 DECEMBER, 2019 ACCOUNT № 1771464085 – POLARIS (FORMERLY SKYE) BANK PLC: $ Total amount received from IDA 31,055,957.46 Add: Interest received 1,855.78 31,057,813.24 Less: Withdrawal applications based on eligible expenditure 30,729,550.91 Balance as at 31 December, 2019 328,262.33 ========= - Page 13 - BAUCHI STATE WORLD BANK ASSISTED STATE EDUCATION PROGRAM INVESTMENT PROJECT SUMMARY OF STATEMENT OF EXPENDITURE SUBMITTED FOR WITHDRAWAL APPLICATIONS FOR THE YEAR ENDED 31 DECEMBER, 2019 Item № Category of contract Currency and total Total amount of invoices Eligible Invoice amount Amount paid Amount of contract covered by applications Financing eligible for from Special (Net of retention) % financing Account N N N $ 1 Operating costs & Goods 595,349,397.52 595,349,397.52 100 595,349,397.52 1,673,855.34 2 Teachers Grants 431,250,000.00 431,250,000.00 100 431,250,000.00 1,204,608.94 2. School Grants 239,990,000.00 239,990,000.00 100 239,990,000.00 670,363.13 Total 1,266,589,397.52 1,266,589,397.52 1,266,589,397.52 3,548,827.41 ============= ============= ============ ========== - Page 14 - BAUCHI STATE WORLD BANK ASSISTED STATE EDUCATION PROGRAM INVESTMENT PROJECT LIST OF ADDITIONS TO FIXED ASSETS DURING THE YEAR 2019 Particulars of Assets Amount ₦ COMMUNICATION AND OFFICE EQUIPMENT Renewal of internet subscription 1,632,000 Maintenance of internet subscription 630,473 Procurement of safeguard equipment 14,175,000 -------------- 16,437,473 BOOKS Production and supply of Science textbooks 184,104,000 ---------------- 200,541,473 ========== The existence of the above assets is to be confirmed in the next year audit visit to the project office. The restriction in movement as a result of COVID-19 Pandemic would not permit the verification exercise this year. - Page 15 - BAUCHI STATE WORLD BANK ASSISTED STATE EDUCATION PROGRAM INVESTMENT PROJECT IDA DISBURSMENT FOR THE YEAR ENDED 31 DECEMBER, 2019 Description Amount Amount Requested paid $ $ BA – 037 AF Replenishment 125,670.39 125,670.39 BA - 038 Replenishment 456,293.66 456,293.66 BA - 039 Replenishment 10,368.00 10,368.00 BA – 040A Replenishment 362,236.81 362,236.81 BA - 041 Replenishment 196,187.77 196,187.77 BA - 042 Replenishment 13,761.35 13,761.35 BA – 043AF Replenishment 200,977.65 200,973.65 BA – 044 AF Replenishment 398,994.41 398,994.41 BA - 045 Replenishment 108,838.17 108,838.17 BA - 046 Replenishment 123,393.85 123,393.85 BA – 047AF Replenishment 6,120.74 6,120.74 BA – 048 AF Replenishment 201,703.91 201,703.91 BA - 049 Replenishment 131,565.26 131,565.26 BA – 050A Replenishment 274,200.00 274,200.00 BA – 050B AF Replenishment 237,430.17 237,430.17 BA - 051 Replenishment 172,462.40 172,462.40 BA – 052 AF Replenishment 202,150.84 202,150.84 BA - 053 Replenishment 144,699.09 144,699.09 BA - 055 Replenishment 18,081.48 18,081.48 BA – 056 AF Replenishment 4,189.94 4,189.94 BA – 058 AF Replenishment 307,262.57 307,262.57 3,696,588.46 3,696,588.46 ========= =========