Ebola Emergency Response Project IDA H9920 and D0070 Government of Sierra Leone MoHS (IHPAU) Financial statements for the year ended 31 December 2017 aOA7 This report con tains 26 pages Ref:S651/ks/eap Ebola Emergency Response Project IDA H9920 and D0070 Government of Sierra Leone MoHS (lHPAU) Financial statements for the year ended 31 December 2017 Contents Page General information 1 Background information 2 Report of the Executive Members of the Ebola Emergency Response Project 3-4 Independent Auditor's report 5-8 Statement of resources and expenditure by category 9 - 10 Statement of receipts and payments by component 11 - 12 Statement of financial position 13 Statement of cash flows 14 Notes to the financial statements 15-21 Separate opinion on the statement of expenditure submitted during the year 31 December 2017 22 Summary of SoE withdrawal requests 23 Report of the Independent Auditors on the Special Account Statement 24 Special Account Statement United States Dollar 25 Special Account Statements - Sierra Leonean Leones 26 Ebola Emergency Response Project IDA H9920 and 00070 Government of Sierra Leone MoHS (1HPAU) Financial statements for the year ended 37 December 2017 General information Office Ministry of Health and Sanitation Integrated Health Project Administrative Unit (lHPAU) 30 Old Railway Line Tengbeh Town Freetown Chief Medical Officer Dr. Brima Kargbo Team Lead Umaru Jalloh Financial Specialist Ayodele Martin Bankers Sierra Leone Commercial Bank Limited Siaka Stevens Street Freetown Sierra Leone Bank of Sierra Leone Gloucester Street Freetown Standard Chartered Bank Sierra Leone Limited Lightfoot Boston Street Freetown Auditors KPMG Sierra Leone Chartered Accountants KPMG House 37 Siaka Stevens Street Freetown Sierra Leone Ebola Emergency Response Project IDA H9920 and D0070 Government of Sierra Leone MoHS (lHPAU) Financial statements for the year ended 31 December 2017 Background information Project description Information The Ministry of Health and Sanitation (MOHS) received funds from World Bank to implement the Ebola Emergency Response Project. These funds are managed by the Integrated Health Projects Administrative Unit (IHPAU) and are kept in a designated account. The Project initially started in September 2014 with 5 components (see below). However, there had been a reprogramming in 2016 to suit the needs of the country with the Project now having only two components (see below). The total current budget is $26,328,022 for four years starting from 2016. The objective of the project is: * To contribute in the short-term to the control of the Ebola Virus Disease (EVD) outbreak, make available selected essential health services and mitigate the socio-economic impact of EVD in Sierra Leone. The 5 components of the initial Project include: * Support to the EVD outbreak Response Plans and Strengthening Essential Health Services; * Human Resources scale up for outbreak response and essential health services; * Provision of Food and Basic Supplies to Quarantined Populations and EVD affected Households; * Provision of Essential Public Services; and * Pre-investment Assessment for Acceleration of Ebola prevention, Treatment and preparedness. The 2 components of the current Projects are: * Health Service Delivery; and * Health System Support According to the Project Agreement (Project Appraisal Document) only eligible expenditures are required to be financed under the program and that activities should be carried out in accordance with the procedures specified in the Agreement. As agreed between the Ministry of Finance and Economic Development and the World Bank, an independent post financial audit is required for all financial transactions carried out under the Project each year. The audit will cover activities undertaken during the year. This financial audit therefore covers the year ended 2017. 2 Ebola Emergency Response Project IDA H9920 and D0070 Government of Sierra Leone MoHS (IHPAU) Financial statements for the year ended 31 December 2077 Report of the Executive Members of the Ebola Emergency Response Project The Executive Members of the above Project hereby present its report to Government of Sierra Leone for the year ended 31 December 2017. The Executive Members are responsible for the preparation and presentation of the project financial statements, comprising the statement of financial position at 31 December 2017, the statement of resources and expenditure, the statement of receipts and payments and the statement of cash flows for the year then ended and the notes to the financial statements, which include a summary of significant accounting policies and other explanatory notes in accordance with the accounting policies stated in note 1 to the financial statements and for such internal control as the 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 project financial statements, the Executive Members are responsible to: * Select suitable accounting policies and apply them consistently; * Make judgements and estimates that are reasonable and prudent; * State whether applicable accounting policies have been followed, subject to any material depatures disclosed and explained in the Financial statement; * Prepare the Financial statement on a going concern basis unless it is Inappropriate to presume that the project will continue its activities. The Executive Members are 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. Executive Members The names of the officers who served during the year under review are as set out on page 1 of these financial statements. None of the Executive Officers had or has any interest in any contract or arrangement to which the principal recipient was or is a party. Auditors The auditors Messer KPMG Sierra Leone have indicated their willingness to continue in office. 3 Ebola Emergency Response Project IDA H9920 and D0070 Government of Sierra Leone MoHS (lHPAU) Financial statements for the year ended 37 December 2017 Report of the Executive Members of the Ebola Emergency Response Project (continued) Approval of the financial statements The financial statements of the Ebola Emergency Reiponse Project as indicated above were approved by the Executive Members on 30 C _ _ .1 2018 and are signed on their behalf by: -tfiiWf-Medical Officer a Financial Specialist 4 KPMG KPMG Sierra Leone Telephone: +232-22-222061 KPMG house Telefax +232-22-22184 37 Siaka Stevens Street Email: kpmg@kpmg-sl.com P.0 Box 100 Internet: www.kpmg.com Freetown Sierra Leone Independent Auditor's Report to the Government of Sierra Leone We have audited the financial statements of the Ebola Emergency Response Project number IDA H9920 and D0070, which comprise the statement of financial position as at 31 December 2017, and the statements of resources and expenditure, receipts and payments and cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies and other explanatory information. In our opinion the financial statements of the Ebola Emergency Response Project number IDA H9920 and D0070 present fairly in all material respects the financial performance of the project for the year ended 31 December 2017 in accordance with the basis of accounting framework described in note 1 Basis for opinion We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Ebola Emergency Response Project number IDA H9920 and D0070 in accordance with the International Ethics Standards Board for Accountants' Code of Ethics for Professional Accountants (ESBA Code) together with the ethical requirements that are relevant to our audit of the financial statements in Sierra Leone, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. We believe that .. the evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Key internal control weaknesses We conducted our audit in accordance with International Standards on Auditing (ISAs). In addition to our responsibility as Auditors, we are required to include in this audit report a highlight on key internal control weaknesses and non-compliance with the financing agreement terms. The audit process was designed in such a way as to detect control deficiencies within the management of the project. The key internal control weaknesses identified were: * The project is required to deduct and make payment of withholding tax on or before the 15th of the following month.However, It was noted that there were outstanding withholding tax relating to 2016. 5 KPMG a partnership established under Sierra Leone is a member of the KPMG network of independent member firms affiliated with KPMG Managing Director: Raymond M. Davies Partner: Derrick Kawaley International cooperative (KPMG International") a Swiss Entity KPMG Independent Auditor's Report to the Government of Sierra Leone Key internal control weaknesses( continued ) * It was noted that procurement policy, such as obtaining of three proforma invoices from different suppliers as stated in the Joint Fund Management Manual for IHPAU was not consistently adhered to. Other information Management is responsible for the other information. The other information comprises the General Information, Background Information and Management's Responsibility Statement. Other information does not include the financial statements and our auditor's report thereon. Our audit of the financial statements does not cover the other information and we do not express an audit opinion or any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in so doing, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we have performed on the other information obtained prior to the date of this auditor's report, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Responsibilities of Management and those charged with Governance for the financial statemnents The Executive Committee is responsible for the preparation and fair presentation of the financial statements in accordance with the Applicable Financial Reporting Framework and for such internal control as the Management determines is necessary to enable the preparation of the financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, Executive Committee is responsible for assessing the Project'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 the Executive Committee either intends to liquidate the Project or to cease operations, or have no realistic alternative but to do so. Those charged with governance are responsible for overseeing the Project's financial reporting process. 6 Independent Auditor's Report to the Government of Sierra Leone Auditor's responsibilities for the audit of the financial statements Our objectives are 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 our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs 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 ISAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We 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 our 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 control. * 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 Project's internal control. * Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Management. * Conclude on the appropriateness of the Management' 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 Project's ability to continue as a going concern. If we conclude that a material uncertainty exists, then we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Project 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. * Obtain sufficient appropriate audit evidence regarding the financial information of the project or business activities within the project to express an opinion on the financial statements. We are responsible for the direction, supervision and performance of the project's audit. We remain solely responsible for our audit opinion. 7 KPMG Independent Auditor's Report to the Government of Sierra Leone Auditor's responsibilities for the audit of the financial statements * We 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 we identify during our audit. * We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards. Other matters The financial statements have been prepared in accordance with the basis of accounting framework described in note 1 for the purpose of determining the financial position of the project by its Executive Committee and donors and the financial statements and related auditor's report may not be suitable for another purpose. Our report is intended solely for the management of the IHPAU and its donors and should not be distributed to or used by parties other than the management of IHPAU and its donors. The Engagement Partner on the audit resulting in this Independent Auditor's report is Derrick L Kawaley. Freetown Chartered Accountants Date: 3 8 mm Ebola Emergency Response Project IDA H9920 and D0070 Government of Sierra Leone MoHS (lHPAU) Financial statements for the year ended 31 December 2077 Statement of resources and expenditure by category For the year ended 31 December 2017 H9920 D0070 Total H9920 D0070 Total 2017 2017 2017 2016 2016 2016 Notes USD USD USD USD USD USD Resources: Bank balance brought forward 14,409 4,092,760 4,107,169 9,977 1,168,830 1,178,807 Adjustment for prior year exchange difference - - - 50,890 (50,890) - Adjusted bank balance brought forward 14,409 4,092,760 4,107,169 60,867 1,117,940 1,178,807 Receipts Withdrawal application 2 - 3,709,717 3,709,717 - 6,864,356 6,864,356 Total receipts - 3,709,717 3,709,717 6,864,356 6,864,356 Total resources 14,409 7,802,477 7,816,886 60,867 7,982,296 8,043,163 MA The notes on pages 15 to 21 are an integral part of these financial statements 9 Ebola Emergency Response Project IDA H9920 and D0070 Government of Sierra Leone MoHS (lHPAU) Financial statements for the year ended 31 December 2017 - Statement of resources and expenditure by category (continued) For the year ended 31 December 2077 H9920 D0070 Total H9920 D0070 Total 2017 2017 2017 2016 2016 2016 Notes USD USD USD USD USD USD Expenditure Goods , works , non- consulting services , training and operating costs - 6,272,122 6,272,122 46,458 2,332,168 2,378,626 Compensation benefit - 447,859 447,859 - 1,723,247 1,723,247 Repayment of amount due to Ministry of Finance and Economic Development 4 - 85,577 85,577 - - Advances 3 - 344,010 344,010 - - Exchange gain - (81,870) (81,870) - (80,302) (80,302) Total expenditure - 7,067,698 7,067,698 46,458 3,975,113 4,021,571 Result for the year 14,409 734,779 749,188 14,409 4,007,183 4,021,572 Represented by Cash and cash equivalents 6 14,409 888,439 902,848 14,409 4,092,760 4,107,169 Payables 4 - (153,660) (153,660) - (85,577) (85,577) 14,409 734,779 749,188 14,409 4,007,183 4,021,592 These financial statements were approved on 3o 2018 , 1 k Chief Medical Officer i l0 Team lead SItFinancial Specialist The notes on pages 15 to 21 are an integral part of these financial statements 10 Ebola Emergency Response Project IDA H9920 and D0070 Government of Sierra Leone MoHS (HPAU) Financial statements for the year ended 31 December 2017 Statement of receipts and payments by component for the year ended 31 December 2077 H9920 D0070 Total H9920 D0070 Total Notes 2017 2017 2017 2016 2016 2016 USD USD USD USD USD USD Resources: Bank balance brought forward 14,409 4,092,760 4,107,169 9,977 1,168,830 1,178,807 Adjustment for prior year exchange difference - - - 50,890 (50,890) - Adjusted bank balance 14,409 4,092,760 4,107,169 60,867 1,117,940 1,178,807 brought forward -_ - ---- Receipts Withdrawal application 2 - 3,709,717 3,709,717 - 6,864,356 6,864,356 Total receipts - 3,709,717 3,709,717 - 6,864,356 6,864,356 Total resources 14,409 7,802,477 7,816,886 60,867 7,982,296 8,043,163 Payments Component 1: Support to EVD Outbreak Response 5 - - - 46,458 1,666,377 1,712,835 Component 2: Human Resource Scale Up 5 - 777,564 777,564 - 1,723,222 1,723,222 New Component 1: Health Service Delivery 5 - 3,865,221 3,865,221 - 505,023 505,023 New Component 2: Health System Support 5 - 2,077,196 2,077,196 - 160,794 160,794 Advance 3 - 344,010 344,010 - - - Repayment of amount due to the Ministry of Finance and Economic Development (MoFED) 4 - 85,577 85,577 - - - - 7,149,568 7,149,568 46,458 4,055,416 4,101,874 The notes on pages 15 to 21 are an integral part of these financial statements 11 Ebola Emergency Response Project IDA H9920 and 00070 Government of Sierra Leone MoHS (lHPAU) Financial statements for the year ended 31 December 2077 Statement of receipts and payments by component (continued) for the year ended 31 December 2017 Notes H9920 D0070 Total H9920 D0070 Total 2017 2017 2017 2016 2016 2016 USD USD USD USD USD USD Excess of receipts over payments 14,409 652,909 667,318 14,409 3,926,880 3,941,289 Effect of movement in exchange rate on bank balance - 81,870 81,870 - 80,302 80,302 Net receipts over payment 14,409 734,779 749,188 14,409 4,007,182 4,021,591 Payables 4 - 153,660 153,660 - 85,577 85,577 Cash balance at 31 6 14,409 888,439 902,848 14,409 4,092,759 4,107,168 December These financial statements were approved on 3o A 2018 Chief Medical Officer Team lead Financial Specialist The notes on pages 15 to 21 are an integral part of these financial statements 12 Ebola Emergency Response Project IDA H9920 and D0070 Government of Sierra Leone MoHS (lHPAU) Financial statements for the year ended 37 December 2017 Statement of financial position as at 37 December 2017 H9920 D0070 Total H9920 D0070 Total 2017 2017 2017 2016 2016 2016 Notes USD USD USD USD USD USD Assets Cash and Cash equivalents 6 14,409 888,439 902,848 14,409 4,092,760 4,107,169 Advances 3 297,097 1,977,207 2,274,304 297,097 1,633,197 1,930,294 311,506 2,865,646 3,177,152 311,506 5,725,957 6,037,463 Represented by: Funding and liabilities Deferred income 7 311,506 2,711,986 3,023,492 311,506 5,640,380 5,951,886 Payables 4 - 153,660 153,660 - 85,577 85,577 311,506 2,865,646 3,177,152 311,506 5,725,957 6,037,463 These financial statements were approved on 2018 -: hief Medical Officer A R [I(a)Team lead Financial Specialist The notes on pagesl 5 to 21 are an integral part of these financial statements 13 Ebola Emergency Response Project IDA H9920 and D0070 Government of Sierra Leone MoHS (HPAU) Financial statements for the year ended 37 December 2017 Statement of cash flows for the year ended 37 December 2017 H9920 D0070 Total H9920 D0070 Total Asat31 Asat31 Asat31 Asat31 Asat31 Asat31 December December December December December December 2017 2017 2017 2016 2016 2016 Notes $ $ $ $ $ $ Cash flows from operating activities Refund from Implementing Partner - .. Cash paid to suppliers and employees 9 - (6,995,908) (6,995,908) (46,458) (4,055,415) (4,101,873) Net cash flows from operating Activities - (6,995,908) (6,995,908) (46,458) (4,055,415) (4,101,873) Cash flows from financing activities Cash flows from IDA 7 - 3,709,717 3,709,717 - 6,864,356 6,864,356 Other receipts - - - 85,577 85,577 Net cash flows from financing activities - 3,709,717 3,709,717 - 6,949,933 6,949,933 as Net increase in cash and cash equivalents - (3,286,191) (3,286,191) (46,458) 2,894,518 2,848,060 Adjusted cash and cash equivalent at 1 January 14,409 4,092,760 4,107,169 60,867 1,117,940 1,178,807 Effect of movements in exchange rate on cash and cash equivalent - 81,870 81,870 - 80,302 80,302 Cash and cash equivalents at 31 December 14,409 888,439 902,848 14,409 4,092,760 4,107,169 The notes on pagesl 5 to 21 are an integral part of these financial statements 14 Ebola Emergency Response Project IDA H9920 and 00070 Government of Sierra Leone MoHS (lHPAU) Financial statements for the year ended 31 December 2017 Notes to the financial statements 1. Reporting entity The Ministry of Health and Sanitation received funds from the World Bank to implement the Ebola Emergency Response Project and thus the Integrated Health Projects Administration Unit (IHPAU) is managing and accounting for these funds. These financial statements comprise those of Ebola Emergency Response Project IDA H9920 and D0070 for the year ended 31 December 2017. 1.1 Summary of significant accounting policies The Principal accounting polices applied in the preparation of these financial statements are set out below. These policies have been consistently applied unless otherwise stated. 1.2 Basis of accounting The project accounts were prepared in accordance with the accounting policies set out below and the requirements of the Project agreement. They were approved for issue by the Executive Members on 2 4 '45 2018. The statement of resource and expenditure have been prepared on the cash basis of accounting which means that income is recognised when received, and expenses are recognised when paid for. The project financial statements are presented in United Stated Dollars (USD) and have been prepared under the historical cost convention. The basis of income recognition is described in note 1.5 below. 1.3 Foreign currency transactions Assets and liabilities denominated in foreign currencies (other than US Dollars) are translated at the rates ruling at the balance sheet date. The local currency expense pertaining to the IDA are translated into USD at the rate of exchange prevailing on the date at which the transactions were recorded. Al gains and losses arising are taken to the statement of income and expenditure. MW 1.4 Fixed assets Fixed assets are expensed on acquisition but a comprehensive fixed assets register is maintained. 1.5 Income Funding from the World Bank is held in a deferred income account when received and are only recognised in the Project's income Statement when utilized. 15 Ebola Emergency Response Project IDA H9920 and D0070 Government of Sierra Leone MoHS (IHPAU) Financial statements for the year ended 37 December 2077 Notes to the financial statement (continued) 2. IDA Disbursements H9920 D0070 Total H990 D0070 Total As at 31 As at 31 As at 31 As at 31 As at 31 As at 31 December December December December December December 2017 2017 2017 2016 2016 2016 $ $ $ $ $ $ Withdrawal application EERP/021 - 2,308,967 2,308,967 Withdrawal application EERP/022 - 4,555,389 4,555,389 Withdrawal application EERP/VA/028 - 1,517,954 1,517,954 - Withdrawal application EERP/WA/026 - 2,191,763 2,191,763 - Total - 3,709,717 3,709,717 - 6,864,356 6,864,356 3. Advances Total Total IDA H9920 As at 31 As at 31 December December 2017 2016 $ $ Component 2: Human resources scale up for outbreak response and essential health services Special performance incentives 145,000 145,000 Hazard pay 26,204 26,204 171,204 171,204 Component 3: Provision of food a basic supplies to quarantined population MSWGCA - Survivor discharge packages 125,893 125,893 125,893 125,893 Total IDA H9920 297,097 297,097 IDA D0070 Component 2: Human resources scale up for outbreak response and essential health services Hazard pay 774,791 774,791 774,791 774,791 Component 4: Provision of essential public services 858,406 858,406 SSN 344,010 Loans/advances to public offices 1,202,406 858,406 Total IDA D0070 1,977,207 1,633,197 16 Ebola Emergency Response Project IDA H9920 and D0070 Government of Sierra Leone MoHS (IHPAU) Financial statements for the year ended 31 December 2077 Notes to the financial statement (continued) 4. Payables 31 December 31 December 2017 2016 . $ $ Withholding tax 141,032 Accounts 12,628 - Transfer of funds for project H8770 - 85,577 153,660 85,577 In April 2016,the National Ebola Response Centre (NERC) transferred to IHPAU the sum of $85,577 for project H8770. Project H8770 was however not implemented by IHPAU but by the Ministry of Finance and Economic Development (MoFED), and consequently in 2017, the funds were transferred to the Ministry of Finance and Economic Development (MoFED). 5. Expenditure Sa. IDA H9920 31 December 31 December 2017 2016 $ $ Component 1: Support to EVD out- break response plans and strengthening essential health services Admin Staff cost - - MOHS - 29,954 Operational and Running Costs - 16,504 - 46,458 Component 2: Human Resources scale up for outbreak response and essential health services Hazard pay NRS and IDT LABS Special performance incentive Component 3: Provision of Food and Basic Supplies to quarantined population MSWGCA-Survivor discharge packages Food support to treatment centres Total expenditure IDA H9920 46,458 17 Ebola Emergency Response Project IDA H9920 and 00070 Government of Sierra Leone MoHS (lHPAU) Financial statements for the year ended 31 December 2017 Notes to the financial statement (continued) 5. Expenditure (continued) 5b. IDA D0070 31 December 31 December 2017 2016 $ $ Component 1: Support to EVD outbreak response plans and strengthening essential health services Admin staff costs - - BDO - 4,185 IRN - 326,100 S LAA - 296,813 Surge operations - - IHPAU Salaries: Oct 2015 - Mar 2016 - 386,789 IHPAU Operational Costs: Oct 2015 - Mar 2016 - 141,810 HSS HUB Salaries _ Jan - Mar 2016 - 510,680 - 1,666,377 Component 3: Provision of food and basic supplies to quarantined population MSWGCA - Survivor discharge packages - - Food support to treatment cenres - Component 4: Provision of essential public as services SSN WAPP Component 5: Assessment of Gaps in country Service delivery for the introduction of new Ebola Therapies, diagnostics and vaccines, and Institute of Public Health Health systems strengthening 18 Ebola Emergency Response Project IDA H9920 and D0070 Government of Sierra Leone MoHS (lHPAU) Financial statements for the year ended 31 December 2017 Notes to the financial statement (continued) 5. Expenditure (continued) 5b. IDA D0070 (continued) 31 December 31 December 2017 2016 $ $ New component 1: Health service delivery CHW coordination (through PHC Directorate) 15,552 143 Technical assistance 2,369,176 46,486 Coordination/Hospitals and Labs - 278 Renovations 538,216 121,333 Training and material 440,849 314,845 Coordination 22,500 556 Management and operations 54,032 21,381 Development of superkills 186,238 - Legislative/regulatory fameworkq 4,150 - Capacity - building 94,000 - Esicome implementation 125,661 - Environmental safeguards programme 6,101 - Net environ Health and Sanitation Lab 8,746 - 3,865,221 505,022 Component 2: Human resources scale up for outbreak response and essential healthservices Hazard pay 777,564 1,723,222 NRS and IDT LABS - - 777,564 1,723,222 New component 2: Health system suppor Program implementation support 690,962 20,250 Operations 97,020 13,581 Restructuring of the Nursing and Midwifery Dir. - 679 HSS Hub (Apr 2016-Dec 2017) 178,489 27,750 Salaries 385,950 82,550 Operations 174,846 15,984 Clinical residency training 77,397 - Academic programs 73,512 - Clinical assistants (Makeni) 208,397 - Educational costs 8,298 - Training 118,411 - Operational costs 8,189 - Program support 1,232 - Operational expenses 4,531 - Monitoring, evaluation, studies - - Planning and supervision 27,042 - Health Systems, Policy Planning Information 22,920 - Accreditation measures - - Total expenditure for new component 2,077,196 160,794 Total expenditure IDA D0070 6,719,981 4,055,415 19 Ebola Emergency Response Project IDA H9920 and D0070 Government of Sierra Leone MoHS (IHPAU) Financial statements for the year ended 31 December 2077 Notes to the financial statement (continued) 6. Cash and cash equivalents H9920 D0070 Total H9920 D0070 Total 2017 2017 2017 2016 2016 2016 USD USD USD USD USD USD Designated accounts: NERC - 13,379 13,379 - 13,379 13,379 IHPAU 14,409 835,817 850,226 14,409 4,039,531 4,053,940 Pool accounts - NERC - 38,970 38,970 - 38,970 38,970 Petty cash - IHPAU - 273 273 - 880 880 14,409 888,439 902,848 14,409 4,092,760 4,107,169 7. Deferred income H9920 D0070 Total H990 D0070 Total Asat31 Asat31 Asat31 Asat31 Asat31 Asat31 December December December December December December 2017 2017 2017 2016 2016 2016 $ $ $ $ $ $ Resources Opening balance 311,506 5,640,380 5,951,886 307,074 2,802,027 3,109,101 Opening balance adjustment - - - 50,890 (50,890) - IDA funding - 3,709,717 3,709,717 - 6,864,356 6,864,356 Total resources 311,506 9,350,097 9,661,603 357,964 9,615,493 9,973,457 Goods, works non-consulting services, training and operating cost - 6,272,122 6,272,122 46,458 2,332,168 2,378,626 Compensation benefit - 447,859 447,859 - 1,723,247 1,723,247 Exchange gain - (81,870) (81,870) (80,302) (80,302) Total expenditure - 6,638,111 6,638,111 46,458 3,975,113 4,021,571 Deferred income 311,506 2,711,986 3,023,492 311,506 5,640,380 5,951,886 Deferred income represents the unspent balance of funding received as at the end of the year. 20 Ebola Emergency Response Project IDA H9920 and D0070 Government of Sierra Leone MoHS (lHPAU) Financial statements for the year ended 31 December 2017 Notes to the financial statement (continued) 8. Cash receipts H9920 D0070 Total H990 D0070 Total Asat31 Asat31 Asat31 Asat31 Asat31 Asat31 December December December December December December 2017 2017 2017 2016 2016 2016 $ $ $ $ $ $ IDA withdrawal applications - 3,709,717 3,709,717 - 6,864,356 6,864,356 - 3,709,717 3,709,717 - 6,864,356 6,864,356 9. Cash paid to suppliers and employees H9920 D0070 Total H990 D0070 Total Asat31 Asat31 Asat31 Asat31 Asat31 Asat31 December December December December December December 2017 2017 2017 2016 2016 2016 $ S $ $ $ $ Total expenditure - (6,719,981) (6,719,981) (46,458) (4,055,415) (4,101,873) Increase in advances - (344,010) (344,010) - - Increase in payable - 68,083 68,883 - - (6,995,908) (6,995,908) (46,458) (4,055,415) 4,010,813 10. Commitments Commitments at the reporting date was USD 35,000 in respect of fees for the audit of the project financial statements for the year ended 31 December 2017. 11. Contingent liabilities There were no contingent liabilities as at 31 December 2017 (31 December 2016 : Nil) 12. Subsequent events Events subsequent to the reporting date are reflected only to the extent that they relate directly to the financial statements and the effect is material. There were no such events as at the time of signing this report. 21 KPMG KPMG Sierra Leone Telephone: +232-22-222061 KPMG house Telefax +232-22-22184 37 Siaka Stevens Street Email: kpmg@kpmg-sl.com P.0 Box 100 Internet: www.kpmg.com Freetown Sierra Leone Separate Opinion on the Statement of Disbursements submitred during the year ended 31 December 2017 We have audited the Statement of Disbursement of the Ebola Emergency Response Project for the year ended 31 December 2017 submitted to the World Bank by IHPAU in support of disbursement for expenditure in accordance with the Project Agreement No IDA H9920 D0070 dated 17 September 2014. Our examination was made in accordance with International Standards on Auditing and accordingly included such test of accounting records, verification of assets and liabilities, review of systems of internal controls and other auditing procedures that were considered necessary in the circumstances. In our opinion, the supporting summary sheets and information audited by us, set out on page 22, could be relied upon to support the applicaton for disbursements by IHPAU for expenditure incurred for the purpose of the Project as specified in the Project document. Freetown Chartered Accountants Date: 22 KPMG a partnership established under Sierra Leone is a member of the KPMG network of independent member firms affiliated with KPMG Managing Director: Raymond M. Davies Partner: Derrick Kawaley International cooperative (KPMG International") a Swiss Entity Ebola Emergency Response Project IDA H9920 and D0070 Government of Sierra Leone MoHS (IHPAU) Financial statements for the year ended 31 December 2077 Summary of SOE withdrawal requests No. Description Amount $ 1. Withdrawal application EERP/WA/126 2,191,763 2. Waithdrawal application EERP/WA/028 1,517,954 3,709,717 23 KPMG KPMG Sierra Leone Telephone: +232-22-222061 KPMG house Telefax +232-22-22184 37 Siaka Stevens Street Email: kpmg@kpmg-sl.com P.0 Box 100 Internet: www.kpmg.com Freetown Sierra Leone Report of the Independent Auditors on the Special Account Statements denominated in United States Dollars; and Sierra Leonean Leones Account numbers 8700102004602 and 0100102004602 We have audited the Special Account Statements numbered 8700102004602 and 0100102004602 with the Standard Chartered Bank established under the provision of the IDA Programme for the Ebola Emergency Response Project Grants/Loan Numbered IDA H9920 & D0070 for the year ended 31 December 2017 as set out on pages 25 and 26. We conducted the audit in accordance with the International Standards on Auditing. Those standards require that we plan and prform the audit to obatain resonabl assurance that the Special Account statements are free of material misstatements. We believe that our audit provides a reasonable basis for our opinion. The accompanying Special Account Statements were prepared on the basis of cash deposits and withdrawals for the purpose of complying with the project agreement. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Opinion In our opinion the receipts are properly accounted for and the withdrawals were made for the purpose of the project in accordance with the Loan/Grant agreement and World Bank disbursement procedures. The accompanying special account statements give a true and fair view of the ending balances as at 31 December 2017. Other matters The accompany special account statements are only those bank accounts maintained by the Integrated Health Project Administration Unit (IHPAU) and do not include the special account statements of the project's bank accounts balances held with the National Emergency Response Center (NERC). Freetown Chartered Accountants Date: 24 KPMG a partnership established under Sierra Leone is a member of the KPMG network of independent member firms affiliated with KPMG Managing Director: Raymond M. Davies Partner: Derrick Kawaley International cooperative (KPMG International") a Swiss Entity Ebola Emergency Response Project IDA H9920 D0070 Government of Sierra Leone MoHS (lHPAU) Financial statements for the year ended 31 December 2017 Special account statement Account No: 8700102004602 Depository Bank: Standard Chartered Bank Sierra Leone Limited Address: Lightfoot Boston Street, Freetown Related Grant Agreement: IDA H9920 & D0070 Currency: United States Dollars Summary Account activity for the year ended 31 December 2017 $ Opening balance - I January 2017 3,785,468 Transfers:From BDO - From World Bank 3,709,717 Funds transferred from SLL account 145,002 Other funds received 5,000 Reversal/returned of salaries 10,151 Returned payments reversals 222,320 7,877,658 Salaries 2,144,041 Transfer to Leones a/c 3,300,000 Cash withdrawals - Other payments (suppliers etc.) 1,582,246 Bank charges 1,379 7,027,666 Closing balance - 31 December 2017 849,992 25 Ebola Emergency Response Project IDA H9920 D0070 Government of Sierra Leone MoHS (lHPAU) Financial statements for the year ended 31 December 2077 Special account statement Account No: 0100102004602 Depository Bank: Standard Chartered Bank Sierra Leone Limited Address: Lightfoot Boston Street, Freetown Related Grant Agreement: IDA H9920 & D0070 Currency: Sierra Leonean Leones Summary Account activity for the year ended 31 December 2017 Le Opening balance - 1 January 2017 1,913,967,498 Transfers: From BDO From USD Account 23,201,000,000 . Deposits 175,682,400 Returned salaries 5,739,000 Returned benefits 410,600,000 Returned payments (suppliers etc) 477,280,000 26,184,268,898 Salaries 2,045,250,000 Cash withdrawals 73,280,000 VRS Beneficiaries 558,600,000 Other payments (suppliers etc.) 23,399,523,496 Bank charges 109,381,250 26,186,034,746 Closing balance - 31 December 2017 (1,765,848) 26