KANO STATE COMMERCIAL AGRICULTURAL DEVELOPMENT PROJECT FINANCIAL STATEMENT FOR THE YEAR ENDED 31st DECEMBER 2015 KANO STATE COMMERCIAL AGRICULTURAL DEVELOPMENT PROJECT FINANCIAL STATEMENT FOR THE YEAR ENDED 31st DECEMBER 2015 CONTENTS PAGE Project Information and Professional Advisers 1 Report of Auditors 2 Significant Accounting Policies 3 Income and Expenditure Account 4 Balance Sheet 5 Statement of Cash Flow 6 Notes to Financial Statement 7-8 KANO STATE COMMERCIAL AGRICULTURAL DEVELOPMENT PROJECT PROJECT INFORMATION AND PROFESSIONAL ADVISERS PRINCIPAL OFFICERS 1.Salisu Kaila - Project Coordinator 2.Bashir Bello - Monitoring Officer 3. Sani Ibrahim - Agriculture/Productivity Officer 4 . Shehu M. Barkum - Commercialization Officer 5. Saidu Kura Rabiu - Rural Infrastructure Officer 6. Garba Sabo Yakasai - Project Accountant 7. Musa Muhammed Garn - Procurement Officer 8. Abdullahi lndabawa - Project Internal Auditor 9. Mustapha Bello Bari - Head Project Financial Management Unit 10. Nazir Abba Yusif - Environmental & Social Management Officer 11. Kabir Abdul M. - Training Officer OFFICE ADDRESS I Kano State Commercial Agricultural Development Project KM 9 Hadejia Road I Kano State . AUDITORS Namadi Umar & Co (Chartered accountants) No.4 Suit 4 Abinsa House Zaria Road Kano. BANKERS GT Bank Murtala Muhammed Way , Kano HEAD OFFICE: ABUJA OFFICE: Suite 4 Abinsa House, 1st Floor, Amma House, No.4 Zaria Road, Kano. Plot 429 J. Pam Street, 08050700849, 08023898740 Opposite National Hospital, Central Business District, Abuja Nigeria. NAMADI, UMAR &. CO. SOKOTO OFFICE: No. 13, Abdullahi Fodio Road, Sokoto. 08032190396 e-mail: namadiumar@yahoo.com (Chartered Accountants) Sokoto State REPORT OF AUDITORS TO THE MEMBERS Of THE KANO STATE COMMERCIAL AG RI CULTURAL DEVELOPMENT PROJECT We have audited the accompanying financial statements of Kano State Commercial Agricultural Development Project as at 3pt December, 2015 set out on page 4 to 8 which have been prepared on the basis of the accounting policies set out on page 3 and other explanatory note on page 7 to 8. Respective responsibilities of directors and auditors In accordance with th e provision of the edict establishing the Project, the project management is responsible for the preparation and fair presentation of these financial statements. It is our responsibility to form an independent opinion based on our audit, on these statements and to report our opinion to you. Auditors' Responsibility 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. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance weather the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amount and disclosures in the financial statements. The procedures selected depend on the auditors' judgment, including the assessment of the risks of material misstatement of the financial statements, weather due to fraud or error. In trying to asses these risks, the auditors take into account internal control relevance to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstance, but not for the purpose of expressing an opin ion 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. Independent confirmations of completeness of the accounting records were not available. Opinion In our opinion the financial statement give a true and fair view of the state of affairs of the hospital as at 3pt December, 2015 and of the deficit and cash flow for the year ended. (( Chartered Accountants Kano. 2 KANO STATE COMMERCIAL AGRICULTURAL DEVELOPMENT PROJECT SIGNIFICANT ACCOUNTING POLICIES The following are the significant accounting policies which have been adopted by the Project. 1. Basis of Accounting The accounts are prepared on cash basis. Receipts and Payments are recognized in the books when money is received or paid. 2. Fixed Assets Fixed Assets are stated at cost 3. Depreciation No depreciation is provided on the assets. 4. FOREIGN EXCHANGE TRANSACTIONS Transaction in foreign currencies will be converted to naira at the ruling rate at the time of each transaction. Balances held in foreign currencies at the end of the year will be translated at the rate ruling on the balance sheet date. All exchange rate differentials are treated appropriately in the receipt and payment account. 3 KANO STATE COMMERCIAL AGRICULTURAL DEVELOPMENT PROJECT RECEIPT AND PAYMENT ACCOUNT FOR THE YEAR ENDED 31 5 T DECEMBER, 2015 NOTE 2015 2014 RECEIPTS: Receipt from I DA 299 , 165,068 127,594,951 Other receipt 4 6,442,950 218,422 Total Receipts 305,608,018 127 ,813,373 PAYMENTS: Agricultural Production and commercialization 5 280 ,273 ,534 96 ,713,646 Consultancy Training and Audit 57,577,330 15,910,220 Operating Costs 94,076,059 14,745,260 Total Expenditure 431,926,923 127,369, 126 Excess/ (Deficit) of income over expenditure (126,318,905) 444,247 4 KANO STATE COMMERCIAL AGRICULTURAL DEVELOPMENT PROJECT BALANCE SHEET AS AT 31sr DECEMBER, 2015 2015 2014 FIXED ASSETS 2 73,575,717 71,888,516 Bank Balance 3 59,542,685 187,548,790 Project Development Cost 1,047,544,091 1,047,544 ,09 1 1. 180.662.493 1.306.981.398 FINANCED BY: IDA Fund 959 ,775 ,683 959,775 ,683 Other Receipts 220 ,886,810 347,205,71 5 1.306.981.398 1!180.662.493 Head of PFMU 5 KANO STATE COMMERCIAL AGRICULTURAL DEVELOPMENT PROJECT CASH FLOW STATEMENT FOR THE YEAR ENDED 31sr DECEMBER, 2015 2015 N Cash Flow From Financing Activities: Funds from IDA 304,843,600 127,594,951 Total Cash Flow From Financing Activities: 304,843,600 127,594,951 CASH FLOW FROM INVESTING ACTIVITIES Interest Earned 764,418 218,422 Training and Consultancy (57,577,330) (15,910,220) Operating Costs (94,076,059) (14,745,260) Purchase of Fixed Assets (1,687,200) Agriculture Production and Commercialization (280,273,534) (96, 713,646) Total Cash Outflow From Investing Activities (432,849,705) (127, 150,704) NET CASH EQUIVALENT AT THE END OF THE YEAR (128,006, 105) 444,247 CASH EQUIVALENT AT THE BEGINNING OF THE YEAR 187,548,9790 187, 104,544 CASH AND CASH EQUIVALENT AT THE END OF THE YEAR 59.542.685 187.548.791 PRESENTED BY: Bank and Cash Balance 59,542,685 187,548,790 Bank & Cash Balance at 31 51 Dec, 2013 59.542.685 187 .548. 790 6 KANO STATE COMMERCIAL AGRICULTURAL DEVELOPMENT PROJECT NOTES TO THE ACCOUNTS AS AT 31 5 T DECEMBER 2015 1. THE PROJECT The Kano State Commercial Agricultural Project (CAD P) is under the Cou ntry Partnership Strategy (CPS) which is financed by the International Development Association (IDA) Motor Office Furniture & Total Vehicles Equipment Fittings FIXED ASSETS: N N N N Balance as at 1st January, 2015 36 ,454 ,879 29,364,710 6,068,928 71 ,888 ,517 Additions during the year 1,687,200 1,687 ,200 Balance as at 31 51 December, 2015 36A54,879 29 ,364 ,710 7,756 ,128 73 575 717 Net Book value as at 31st Dec, 2015 36,454,879 29,364,710 7.756,128 73,575,717 2015 2014 BANK BALANCES: N N GT B - Designated Account 5,951,413 104,819 ,983 GT B - Counterpart Funding 42,279 ,974 78,849,851 GT B - Draw Down Account 6,766 ,330 97 ,713 Interest Account Counter Part 3,627,786 3,628,679 Interest Account Domiciliary 916 ,982 152,565 59,542,685 187.548.791 7 KANO STATE COMMERCIAL AGRICULTURAL DEVELOPMENT PROJECT NOTES TO THE ACCOUNT FOR THE YEAR ENDED 31 5 T DECEMBER, 2015 2015 2014 N N Other Income Bank Interest Received 186,105 218,422 Donation From Coordinating Office 299, 165,068 State Government Counterpart Funding 6,256,845 305.608.018 218.422 Agriculture Production and Commercialization Technology demonstration and adoption Matching Grant Market Facilitation 1,089 ,000 580 , 160 On farm processing 38 ,011 ,348 Ru ral Infrastructure I Network 241,193,180 96, 133,486 280.273.534 96.713.646 Consultancy, Training and Audit Training and workshop 53,602,950 11,623,870 Consultancy/ Monitoring 3,974,380 4,286,350 57,577,330 15.910,220 Operating Cost Bank Charges 78 ,990 15,978 Audit fees 1,500,000 1,638 ,850 Motor Vehicle Running Expenses 6,678 ,629 100,000 Printing and Stationary 3,676 ,915 1,499,010 Duty Tour Allowance I Transportation 37 ,822 ,523 4 ,105,298 Office Expenses 208 ,200 Contribution to PFMU 1,920 ,0000 Advertisement I Sanitization 8,735 ,666 242,195 Staff Allowance 29 , 138,001 5,223,929 Refreshment & Entertain ment 175,200 Honorariu m 830 ,000 Networking System 2,726 ,624 Plant & Machinery Maintenance 534 ,000 Cleaning Materials 158,020 Diesel & Fuel 811,600 Telephone & Postages 83,400 Computer Maintenance 264,000 Electricity 654,291 94.076.059 14,745,260 8