r・・，一 ・1、グ， HSちd協バぬm蚊Ce肉何ed Aαカun畑h加ん不M士？ナ如ハh乙へ干砂r生4引 and Authodzed Audit則m 入ヂt声千9 r’か人中又へ干砂入べ」，C千 ダf物or, M初aBHM心叩ふ恥1105りなr INDE PENDENT AUDITORS'REPORT AND FINANCIAL STATEMENTS OF THE AFRICAN UNION COMMISSION SUPPORT FOR CAPACITY DEVELOPMENT OF THE AFRICAN UNION COMMISSION AND OTHER AFRICAN UNION ORGANS PROJECT (P 126848), GRANT No. IDA H939-3A, CONTRACT NO. AUC/CDP/LCS/0 1-2015 FUNDED BY THE INTERNATIONAL DEVELOPMENT ASSOCIATION FOR THE YEAR ENDED 31 DECEMBER 2015 HST, Chartered Certified Accountants A, o t ftA fT 9%41 and Authorized Auditors M9p.9q ,4q'a h.%T (Member of Deloitte Touche Tohmatsu Limited) 5th Floor, Mina Building Ethio-China Friendship Avenue P.O.Box 1608 Addis Ababa Ethiopia Tel.: (+251) 11 552 7666 67, 011 552 7750 51, 011 552 4666 Fax: (+251) 11 552 8384 wwwdeloittecom tQebru@deloitte.com saizaw(aQdeloittecorn 17 June 2016 African Union Commission Addis Ababa INDEPENDENT AUDITORS' REPORT AND FINANCIAL STATEMENTS OF THE AFRICAN UNION COMMISSION, SUPPORT FOR CAPACITY DEVELOPMENT OF THE AFRICAN UNION COMMISSION AND OTHER AFRICAN UNION ORGANS PROJECT (P126848), GRANT No. IDA H939-3A, CONTRACT No. AUC/CDP/LCS/01-2015 FUNDED BY THE INTERNATIONAL DEVELOPMENT ASSOCIATION We have now completed the audit of the above project funded by the International Development Association and are pleased to present our findings thereon. Should you require to discuss any of the issues mentioned in this report, please do not hesitate to contact us. We wish to thank the staff and management of the African Union Commission for the cooperation and courtesies accorded to us during the audit. Yours faithfully, Tekeste Gebru Senior Partner INDEPENDENT AUDITORS' REPORT AND FINANCIAL STATEMENTS OF THE AFRICAN UNION COMMISSION SUPPORT FOR CAPACITY DEVELOPMENT OF THE AFRICAN UNION COMMISSION AND OTHER AFRICAN UNION ORGANS PROJECT (P126848), GRANT No. IDA H939-3A, CONTRACT NO. AUC/CDP/LCS/01-2015 FUNDED BY THE INTERNATIONAL DEVELOPMENT ASSOCIATION FOR THE YEAR ENDED 31 DECEMBER 2015 2 STATEMENT OF MANAGEMENT'S FINANCIAL REPORTING RESPONSIBILITIES The management of the African Union Commission is responsible for preparing the financial statements for each financial year which gives a true and fair view of the state of affairs of the Support for Capacity Development of the African Union Commission and other African Union Organs project (P126848) supported by the International Development Association as at the end of the year and of the project's operating results for the year ended 31 December 2015. Management is required to ensure the project keeps proper accounting records which disclose with reasonable accuracy at any time the financial position of the project. They are also responsible for safeguarding the assets of the project. The management of the African Union Commission accepts responsibility for the preparation of these financial statements supported by reasonable and prudent judgments and estimates that give a true and fair view in accordance with International Public Sector Accounting Standards (IPSAS) and for such internal controls as the management detennine are necessary to enable the preparation of the financial statements that are free from material misstatement, whether due to fraud or error. The management of the African Union Commission is of the opinion that the financial statements give a true and fair view of the state of the financial affairs of the project and of the results of its activities. The management of the African Union Commission further accepts responsibility for the maintenance of accounting records which may be relied upon in the preparation of the financial statements, as well as adequate systems of internal financial control. Biodun Adeyemo Assie ouf Head of External Resources Management Division Dire r of PBFA 7 HST, Chartered Certified Accountants k & t -aPAffm*- gAjfl and Authorized Auditors XPtP?Fq hff+£cF* .t (Member of Deloitte Touche Tohmatsu Limited) 5t Floor, Mina Building Ethio-China Friendship Avenue PO.Box 1608 Addis Ababa Ethiopia Tel.: (+251) 11 552 7666 67, 011 552 7750 51, 011 552 4666 Fax: (+251) 11 552 8384 www.deloitte.com toebru@deloitte.com soizaw@deloitte.com AFRICAN UNION COMMISSION, SUPPORT FOR CAPACITY DEVELOPMENT OF THE AFRICAN UNION COMMISSION AND OTHER AFRICAN UNION ORGANS PROJECT (P 126848), GRANT No. IDA H939-3A, CONTRACT NO. AUC/CDP/LCS/01-2015 FUNDED BY THE INTERNATIONAL DEVELOPMENT ASSOCIATION FOR THE YEAR ENDED 31 DECEMBER 2015 3.1 INDEPENDENT AUDITORS' REPORT We have audited the accompanying financial statements of 'Support for Capacity Development of the African Union Commission and other African Union Organs project (P126848)' for the year ended 31 December 2015 set out on pages 10-13 and a summary of significant accounting policies and other explanatory information. Managements'Responsibilityfor the Financial Statement Management is responsible for the preparation and fair presentation of this statement of income and expenditure in accordance with International Public Sector Accounting Standards (IPSAS) and for such internal controls as management determines are necessary to enable the preparation of the financial statements that are free from material misstatement, whether due to fraud or error. Auditors'Responsibility Our responsibility is to express an opinion on the statement of income and expenditure based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance as to whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on our judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, we considered internal controls relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. 8 INDEPENDENT AUDITORS' REPORT (continued) We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements and the supporting schedules present fairly, in all material respects, the income and expenditure for the project for the year qde l December 2015 and the funds were utilized for the purpose defined in the funding greemeent and in accordance with International Public Sector Accounting Standards (IPSAS). Addis Ababa HST, Chartered CertifiedAccountants 17 June 2016 andAuthorizedAuditors (Member ofDeloitte Touche Tohmatsu Limited) 9 AFRICAN UNION COMMISSION, SUPPORT FOR CAPACITY DEVELOPMENT OF THE AFRICAN UNION COMMISSION AND OTHER AFRICAN UNION ORGANS PROJECT (P 126848), GRANT No. IDA H939-3A, CONTRACT NO. AUC/CDP/LCS/01-2015 FUNDED BY THE INTERNATIONAL DEVELOPMENT ASSOCIATION FOR THE YEAR ENDED 31 DECEMBER 2015 3.2 STATEMENT OF INCOME AND EXPENDITURE FOR THE YEAR ENDED 31 DECEMBER 2015 Note USD USD 2015 2014 INCOME Grants received during the year 8-333-913.47 - EXPENDITURE BY COMPONENT Strengthening Institutional Capacity 3.3.7.1 7,932,752.29 883,913 Coordinate Member States Common Positions on AGOA 3.3.7.2 240,131.14 - Project Management and Learning 3.3.7.3 398,595.37 - Project Audit Fee 3,004.18 Total expenditure (8.74.482.98 (883,913) Excess income (expenditure) (240,569.51) (883,913) Fund balance as at I January 2015 (MIL.13.47)- Fund balance as at 31 December 2015 9 A&M Represented by: Sundry receivable 142,740.50 Cash at bank 5.,081,757.02 _____ 5,224,497.52 Less: Accounts Payable (6,348,980.50) (883,913) The financial statements on page 10-13 were approved by the African Union Commission management on 17 June 2016 and signed on its behalf by: ar-unActe -osie Head of External Resource Management Division Direct 10 AFRICAN UNION COMMISSION, SUPPORT FOR CAPACITY DEVELOPMENT OF THE AFRICAN UNION COMMISSION AND OTHER AFRICAN UNION ORGANS PROJECT (P126848), GRANT No. IDA H939-3A, CONTRACT NO. AUC/CDP/LCS/01-2015 FUNDED BY THE INTERNATIONAL DEVELOPMENT ASSOCIATION FOR THE YEAR ENDED 31 DECEMBER 2015 3.3 NOTES TO THE FINANCIAL STATEMENTS 3.3.1 Basis of preparation The financial statements have been prepared in accordance with International Public Sector Accounting Standards (IPSAS) and the AU financial rules and regulations. 3.3.2 Income Income represents amounts received in USD from the International Development Association. Income is recognised when the funds are received into the project's bank. 3.3.3 Expenditure Expenditure represents amounts disbursed and costs incurred denominated in USD. 3.3.4 Taxation Income received by the project is not subject to tax since it is exempted from any form of tax as it is an African Union project and the commission has Headquarters Agreement with the host country, the Federal Democratic Republic of Ethiopia, for exemption of any taxes. 3.3.5 Foreign currency transactions Cash receipts and payments arising from transactions in currencies other than the reporting currency are recorded in the income financial statements using the actual rate of exchange. Cash balances held in foreign currency are reported using the closing rate. Any gains or losses on foreign currency transactions/balances area dealt with in the statement of income and expenditure. 3.3.6 Currency The financial statements are presented in US Dollar (USD). 11 AFRICAN UNION COMMISSION, SUPPORT FOR CAPACITY DEVELOPMENT OF THE AFRICAN UNION COMMISSION AND OTHER AFRICAN UNION ORGANS PROJECT (P126848), GRANT No. IDA H939-3A, CONTRACT NO. AUC/CDP/LCS/01-2015 FUNDED BY THE INTERNATIONAL DEVELOPMENT ASSOCIATION FOR THE YEAR ENDED 31 DECEMBER 2015 3.3 NOTES TO THE FINANCIAL STATEMENTS (Continued) 3.3.7 Expenditure 3.3.7.1 Strengthening Institutional Capacity 2015 2014 Enhancing corporate governance & management systems and procedures in strategic planning, financial management, budgeting, procurement, conference management & other services as per international standard - 883,913.00 Consultancy Services for Development of Standard Operating 54,011.04 Procedures of AHRM (Develop, update and review Policies) Phase II & III - Consultancy services for Organization and Functional review of AU 1,540,188.56 Consultancy Services to Reengineering AUC's recruitment/ Selection Process (AHRM) 130,734.29 Support for the promotion of Peer-to- Peer learning for key decision makers with strategic partners 37,425.29 Consultancy service for Data Migration to the new Data Centre 29,332.00 (MIS) Support for the acquisition of ICT Equipment and Conference Management Equipment 2,823,751.35 Consultancy services for the learning and development Strategy for AUC and develop a culture of continuous improvement by all staff through skills training 545,337.48 Phase I - Consultancy services for organization and functional review of the AU 328,074.00 Setup of the African Union Academy 81,132.03 Consultancy services to develop and implement a process 38,609.08 improvement approach for AUC Support the Smooth Running of The IT Infrastructure (IT 6,117.48 Consultant) Support the smooth running of IMIS 81,010.06 Training SAP Academy (Preparing SAP training module and provision of training) 39,000.00 Production and dissemination of promotional items for DIC 52,979.38 Marketing the AU, social media outreach and flagship program on Google, Facebook, Twitter and Purchase of web template and graphics (DIC) 1,043.00 Advertising and Branding African Union for Information and Communication Directorate (DIC) 1,043.81 Multimedia Experts for testing and expanding live streaming 6,600.00 coverage of meeting and events (DIC) Communication Specialist Consultant (DIC 47.198.86 12 AFRICAN UNION COMMISSION, SUPPORT FOR CAPACITY DEVELOPMENT OF THE AFRICAN UNION COMMISSION AND OTHER AFRICAN UNION ORGANS PROJECT (P126848), GRANT No. IDA H939-3A, CONTRACT NO. AUC/CDP/LCS/01-2015 FUNDED BY THE INTERNATIONAL DEVELOPMENT ASSOCIATION FOR THE YEAR ENDED 31 DECEMBER 2015 2015 2014 Supply, Delivery and Installation of Smart Conference Computers for Delegates Tables in the African Union Commission to Enhance Communication, Feedback and Participation 913,651.20 - Outreach Programme - Judicial Dialogue 145,707 5 SAP Grant and Budget Module 129,418.88 Publication of policies and other material 11,444.04 IPSAS Implementation Specialized workshop/seminar 113,510.68 Centralized facilitator-led training 186,127.65 Capacity Building/Exchange Program 16,561.82 Workshop on structural & admin reforms for the PRC - Douala 243,869.48 Facilitate the establishment and operations of stakeholder platforms (Trade Union Forum; AU-CSO Consultations; Interfaith Dialogue and Diaspora RCC and International CSO Forum 222,157.34 Involvement of Multi-Sectoral African Diaspora Community in AU Agenda 106,715.74 3.3.7.2 Coordinate Member States Common Positions on AGOA Coordinate Member States Common Positions on AGOA 30,000.00 Organise a Meeting of the Committee of Senior Officials on the CFTA 172,272.69 Meetings of Various Technical Working Groups 3.3.7.3 Project Management and Learning Project Running Cost 398 595 37 315 37 13 AFRICAN UNION COMMISSION, SUPPORT FOR CAPACITY DEVELOPMENT OF THE AFRICAN UNION COMMISSION AND OTHER AFRICAN UNION ORGANS PROJECT (Pl 26848), GRANT No. IDA H939-3A, CONTRACT NO. AUC/CDP/LCS/0 1-2015 FUNDED BY THE INTERNATIONAL DEVELOPMENT ASSOCIATION FOR THE YEAR ENDED 31 DECEMBER 2015 ANNEX 1- FIXED ASSET SCHEDULE Fixed Assets amounting USD 3,497,638.60 were purchased during the year under the project fund. As the assets were purchased towards the end of the year, they are kept in the store. Distribution and fixing have been started subsequently. Fixed Asset register is updated in the SAP and all the assets distributed subsequently are tagged. Fund Center GL Description Amount IAHR1813 190020 IT Equipment 190,020.00 IAHRO 1813 190060 Office Equipment 213,504.00 IARRO1813 190520 Computer and Accessories 2,246,140.00 1CON00404 190520 Conference IT Equipment 847,974.60 Total 3,497.638.6 17