TARABA STATE GOVERNMENT OF NIGERIA NIGERIA STATE HEALTH INVESTMENT PROJECT (NSRIP) WORLD BANK (IDA) CREDIT NO. 58510 FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2019 TABLE OF CONTENT PAGE CORPORATE INFORMATION 1 AUDITORS REPORT 2 STATEMENT ACCOUNTING POLICIES 3 STATEMENT OF FINANCIAL POSITION 4 STATEMENT OF RECEIPTS AND PAYMENTS 5 STATEMENT OF SPECIAL ACCOUNT 6 STATEMENT OF EXPENDITURE 7 NOTES ON THE ACCOUNT 8 - 11 TARABA STATE GOVERNMENT OF NIGERIA NIGERIA STATE HEALTH INVESTMENT PROJECT (NSHIP) WORLD BANK (IDA) CREDIT NO. 58510 FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 312019 CORPORATE INFORMATION PROJECT/IMPLEMENTATION UNIT (PIU) Dr. Ubanus Ezekiel - Project Coordinator Filibus Adamu - Monitoring and Evaluation Gaius Danjuma - Project Accountant Samaila Joshua Dimuti - Waste Manager Eric Bohang Nkumsar - Procurement Urmar Mafindi - ICT Emmanuel Sambo - Technical Assistant Joy Elisha - Technical Assistant Kamal Afolabi - Technical Assistant Babangida Kawu - Assistant Project Accountant Halima Sa'ad - Finance Officer BANKERS Zenith Bank Plc. Jalingo EXTERNAL AUDITORS Sunny Okon & Co. (Chartered Accountants) 94 Moh'd Mustapha Way P.0 Box 514 Jimeta Yola GSM: 08055635688, 08035770136 E-mail: chiefokon@sunnyokonandco.com; sunnyokonandco@gmail.com Website: www.sunnyokonandco.com 1 REPORT OF THE AUDITORS TO THE HEAD, TARABA STATE PROJECT FINANCIAL MANAGEMENT UNIT (PFMU) ON THE FINANCIAL STATEMENTS OF THE WORLD BANK ASSISTED NIGERIAN STATE HEALTH INVESTMENT PRO[ECT FOR THE YEAR ENDED DECEMBER 31, 2019. (58510) We have audited the accompanying project financial statements of the Nigeria State Health Investment Project, for the year ended December 31, 2019 prepared on the basis of the accounting policies on page 3. The project is financed by the IDA, credit number 58510. Respective responsibilities of the Project Management and Independent Auditors: The Project Implementation Unit (PIU) coordinates the activities of the project and is as such, responsible for the preparation of the financial statements. It is our responsibility as auditors to express an independent opinion, based on our audit, on these financial statements and to report our opinion to you. Basis of Opinion We conducted our audit in accordance with International Standards on Auditing, issued by the International Federation of Accountants, and World Bank guidelines. These standards and World Bank guidelines require that we plan and perform the audit to obtain reasonable assurance that the financial statements are free of material misstatement. An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements. It also includes an assessment of the estimates and judgments made by the project officers in the preparation of the financial statements, and whether the accounting policies are appropriate to the project circumstances, consistently applied and adequately disclosed. We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide us with sufficient evidence to give reasonable assurance that the financial statements are free of material misstatements, whether cause by fraud, other irregularity or error. Informing our opinion, we also evaluated the overall adequacy of the presentation of the financial statements. Opinion In our opinion, the Project Financial Statements give a true and fair view of the financial position and of the cash flows of Nigeria State Health Investment Project, for the year ended December 31, 2019, in accordance with International Accounting Standards. The Statement of Expenditure (SOE) are in agreement with the books of account and adequate supporting documentation has been maintained to support claims to the World Bank for reimbursements of expenditures incurred; and which expenditures are eligible for financing under the credit agreement. The Statement of Special Account (SA) of the project on page 6 have been prepared on the basis of cash deposits and withdrawals for purpose of complying with the credit agreement and give a true and fair view of the beginning and ending balance and the account activity for the year ended December 31, 2019. For; SUNNY OKON & CO [Chartered Accountants) Yola, Nigeria 2911 May, 2020 Engagement Partner: Sunday Sampson Okon FCA, MBA. (FRC/2014/ICAN/00000007288) > 1066 Atiku Abubakar Way, Off dow Road, Uyo, Akwa-lbom State Tel: 08062626078, 08055635688, 08035770136 > 94 MoI. Mistiapha Way, POF.Box 514, Jiae, Yol. Tel03055635688,08035770136. E-mail: adinin@sunnvokonancdco.com. sundaysokon@yahco.com Website wwwsunnyokonandco.com > Alkome Clinic Complex, Baga Road, P.O.Box 1018, Maiduguri, Borno State. Tel: 076- 974010 > 63Mayne Avenue, Calabar Cross River State. Tel: 08023574832, 08055635688 TARABA STATE GOVERNMENT OF NIGERIA NIGERIA STATE HEALTH INVESTMENT PROJECT (NSHIP) WORLD BANK (IDA) CREDIT NO. 58510 STATEMENT OF ACCOUNTING POLICIES The following are the significant accounting policies adopted by the Project in the preparation of its financial statements. a. Accounting Convention The accounts of the project are prepared under the historical cost convention. No adjustments are made in respect of any changes in specific or general price levels. b. Basis of Accounting The financial statements of the project are prepared on cash basis and no income statement is prepared because it is non- revenue earning. c. Non-Current Assets (i). Items intended for use over a period exceeding one accounting year and whose value per unit is not below N100,000 are classified as Non- Current Assets. (ii). Items intended for use over a period exceeding one accounting year but with unit cost below N100,000 are classified as Special Project Assets. (iii). All Non-Current Assets and Special Project Assets are recorded in the Non-Current Assets and Special Project Assets Registers respectively. (iv]. No depreciation is charged on fixed assets as there are no revenues to match and because the accounts are on cash basis. d. Foreign Currency Foreign currencies are converted to Naira at the rates ruling at dates of the transactions. End of period balances in foreign currency are converted to Naira at the rate ruling at the last date of the period, while gains and losses resulting from such conversions are aggregated and recognized in the period they arise. TARABA STATE GOVERNMENT OF NIGERIA NIGERIA STATE HEALTH INVESTMENT PROJECT (NSHIP) WORLD BANK (IDA) STATEMENT OF FINANCIAL POSITION FOR THE YEAR ENDED DECEMBER 31, 2019 DECEMBER DECEMBER 2019 2018 NOTES N N Non-Current Assets 1 155,899,008 80,559,337 Special Project Assets 2 7,841,821 6,038,072 Development Expenditure 3 1,465,172,227 369,843,893 Cash and Cash Equivalent 4 322.656,053 461041,422 Total Assets 1,951,569.109 917,L82 _24 FINANCED BY: Project Funding 5 1.951.569.109 917A82724 c ect Coordminator Head PFMU Director General Nigeria State Health Investment Project NSHIP 4 TARABA STATE GOVERNMENT OF NIGERIA NIGERIA STATE HEALTH INVESTMENT PROJECT (NSHIP) WORLD BANK (IDA) STATEMENT OF RECEIPTS AND PAYMENTS FOR THE YEAR ENDED DECEMBER 31, 2019 NOTES DECEMBER DECEMBER 2019 2018 Cunmulative N N N Opening Balance 461,041,422 - RECEIPTS International Development Association 1034,086,385 917,482,724 1951,569,109 Total Receipts 1,495,127,807 917,482,724 1951,569,109 PAYMENTS: Goods 95,244,025 76,330,773 171,574,798 Minor Works 144,465,607 55,712,000 200,177,607 Subsidies 570,829,876 - 570,829,876 Consultant Services/Training 327,190,946 286,780,247 613,971,193 Operating Cost 39,062,254 36,587,546 75649800 Total payments 1,176,792,708 455,410,566 1,632,203,274 Surplus of Receipts over Payments 318,335,099 462,072,157 319,365,835 Exchange Difference 4,320,954 1030,735 3,290,219 Closing Balance 322.656.053 461.041,422 322656.054 NSHIP. TARABA STATE GOVERNMENT OF NIGERIA NIGERIA STATE HEALTH INVESTMENT PROTECT (NSHIP) WORLD BANK (IDA) STATEMENT OF SPECIAL ACCOUNT FOR THE YEAR ENDED DECEMBER 31, 2019 Account Number: 5070563099 Bank: Zenith Bank PIc Address: Jalingo, Taraba State Currency: Us Dollar ($3 DECEMBER DECEMBER 2019 2018 Cummulative $ $ $ Opening Balance 1,299,976.89 - ADD: IDA Replenishment(Note 16) 2.997,346.05 2867,133.51 5.864,479,56 4,297,322.94 2.867.133.51 5.864,479.56 DEDUCT: Payments (Transfer to drawdown A/C) 3,345,011.97 1,504,904.20 4,849,916.17 Direct Payments from Special Account 33,673.20 62,141.00 95,814.20 Service Charges 168.38 111.42 279.80 Total Payments 3,378,853.55 1.567.156.62 4,946,010.17 Closing Balance 918,469.39 1299,976.89 918,46.39 NSHIP 6 TARABA STATE GOVERNMENT OF NIGERIA NIGERIA STATE HEALTH INVESTMENT PROJECT CNSHIP) WORLD BANK (IDA STATEMENT OF EXPENDITURE FOR THE YEAR ENDED DECEMBER 31 2019 w/NO Goods, CoIsultant Operating Works Subsidies N Service & Training Cost 008 63,880,714 - - 147,624,120 613,057.49 211,504,834 003 120,112,425 38,830,210 - 460,703.29 158,942,635 004 - - 25,874,382 74,998.21 25,874,382 005 - 1,923,416 - - 5,575.12 1,923,416 006 98,125,600 - - 102,497,137 581,515.18 200,622,737 017 - 10,978,426 22,914,229 - 98,239.61 33,892,655 019 - - - 31,083,824 90,098.04 31,083,824 020 - 5,060,156 - 14,667.12 5,060,156 021 - 5,884,306 17,055.96 5,884,306 022 - 957,910 - - 2,776.55 957,910 023 140,316,232 20142346 82.721168 279.253.250 1,S14298,54 522,432,996 12 3.6.4 144,465.607 592.217.019 .472,95.11 1 7, NSHIP 7 TARABA STATE GOVERNMENT OF NIGERIA NIGERIA STATE HEALTH INVESTMENT PROJECT (NSHIP) WORLD BANK (IDA) NOTE TO THE ACCOUNTS FOR THE YEAR ENDED DECEMBER 31, 2019 2019 2018 N4 N 1 NON-CURRENT ASSETS Plant and Machinery (Note la) 4,309,500 4,309,500 Motor Vehicle (Note 1b) 136,574,725 63,600,525 Computer and Accessories (Note Ic) 15,014,783 12,649,312 155,899,008 80%559,337 (a) PLANT AND MACHINERY 30KVA Generator 4309,500 4,309,500 4,3L09.5Df 40309,50 (b) MOTOR VEHICLE 3Nos Toyota Hilux 63,600,525 63,600,525 iNos Toyota Hilux 22,223,500 2Nos Buses [Mobile clinic) 50,750,700 - 136,574,725 63,600,525 (c) COMPUTERR AND ACCESSORIES 15.014,783 12-649 312 15.014,7B2 12,649.312 2 SPECIAL PROJECT ASSETS Furniture and Fittings (Note 2a) 3,828,071 3,828,071 Equipments (Note 2b) 4.013.750 2210Q01 7.841.821 6038Q07 (a) FURNITURE AND FITTINGS Chairs, tables and cushions 32f28t071 3,828,071 3,828, 071 3,828,071 (b) EQUIPMENTS Data tools 4.013750 2.11 4,013,750 2,210,001 NSHIP 8 TARABA STATE GOVERNMENT OF NIGERIA NIGERIA STATE HEALTH INVESTMENT PROJECT NSHIP WORLD BANK (IDAJ NOTE TO THE ACCOUNTS FOR THE YEAR ENDED DECEMBER 312019 2019 2018 N N 3 DEVELOPMENT EXPENDITURE Balance brought forward 369,843,943 Goods (Note 3a) 95,244,025 76,330,773 Minor Works (Note 3b) 67,322,137 55,712,000 Subsidies (Note 3c) 570,829,876 - Consultancy, Workahops/Training (Note 3d) 327,190,946 200,182,889 Operational Cost (Note 3e) 39,062,254 36,587,546 Exchange Loss/Gain (Note 7) (4,320954) 1,)310,35 Balance Carried Forward 172.227 369.843,943 (a) GOODS Supply of Equipments to Facilities 95,244,025 76,330,773 252±t076,330,f773 (b) MINOR WORKS Sundries 67,322,137 55,712,000 6732137 S.1,0 [c) SUBSIDIES Sundries 570,829,876 570,829,876 - (d) CONSULTANCY, WORKSHOPS AND TRAINING Consultant Services 278,446,322 42,400,621 Incentives - 28,935,000 Workshop/Training 48,744,624 128,847,268 3-27190 946 200.182.889 (e] OPERATIONAL COST Transport and Travelling 8,144,519 16,062,221 Contribution to PFMU 1,500,000 2,500,000 Office Rent 5,220,000 Insurance - 4,822,080 Entertainments and Hospitality 15,628,420 3,496,500 Stationeries and Printing 3,250,815 1,110,345 Security 3,140,500 1,026,000 Media and Publicity 7,398,000 2,350,400 Balance Carried Forward 3906224 36,587,46 4 CASH AND CASH EOUIVALENTS Zenith Bank Plc - Special A/c 316,871,940 448,492,027 Zenith Bank Plc - DrawDown A/c 5.784113 12,49,39S 322.656.053 461.041.422 5 PROJECT FUNDING Balance brought forward 917,482,724 - IDA Funds 1.034,086,385 917,482,724 Balance Carried Forward 1,951,569,109 917.482724 NSHIP 9 TARABA STATE GOVERNMENT OF NIGERIA NIGERIA STATE HEALTH INVESTMENT PROJECT (NSHIP) WORLD BANK (IDA) NOTE TO THE ACCOUNTS FOR THE YEAR ENDED DECEMBER 31. 2019 6 RECEIPTS Date Particular IDA Special IDA (N) Total (Nj 14/01/2019 IDA Transfer 236,938.01 81,743,613 81,743,613 15/01/2019 IDA Transfer 338,876.75 116,912,479 116,912,479 29/01/2019 IDA Transfer 462,844.72 159,681,428 159,681,428 11/4/2019 IDA Transfer 613,057.49 211,504,834 211,504,834 9/7/2019 IDA Transfer 460,703.29 158,942,635 158,942,635 9/7/2019 IDA Transfer 74,998.21 25,874,382 25,874,382 10/9/2019 IDA Transfer 5,575.12 1,925,416 1,925,416 5/9/2019 IDA Transfer 581,515.18 200,622,737 200,622,737 9/9/2019 IDA Transfer 98,239.61 33,892,665 33,892,665 16/10/2019 IDA Transfer 90,098.04 31,083,824 31,083,824 16/10/2019 IDA Transfer 14,667.12 5,060,156 5,060,156 4/11/2019 IDA Transfer 2,776.55 957,910 957,910 4/12/2019 IDA Transfer 17,055.96 5884,306 58843 2,997346.05 1.034,086,385 JMi 06385 NSHIP 10 TARABA STATE GOVERNMENT OF NIGERIA NIGERIA STATE HEALTH INVESTMENT PROJECT (NSHIP) WORLD BANK (IDA) NOTE TO THE ACCOUNTS FOR THE YEAR ENDED DECEMBER 31, 2019 7 EXCHANGE DIFFERENCE $ Received Amount Withdrawal Amount Difference Rate _A) Rate tB_ N N N N N 353,623.19 345.00 122,000,001 345.00 122,000,001 - 199,000.00 345.00 68,655,000 345.00 68,655,000 - 181,217.40 345.00 62,520,003 345.00 62,520,003 - 45,690.74- 345.00 15,763,305 345.00 15,763,305 - 74,616.70 345.00 25,742,762 345.00 25,742,762 - 325,113.64 345.00 112,164,206 345.00 112,164,206 - 9,853.00 345.00 3,399,285 345.00 3,399,285 - 59,887.70 345.00 20,661,257 345.00 20,661,257 - 154,687.31 345.00 53,367,122 343.00 53,057,747 309,375 165,094.83 345.00 56,957,716 343.00 56,627,527 330,189 44,598.88 345.00 15,386,614 343.00 15,297,416 89,198 686,505.23 345.00 236,844,304 343.00 235,471,294 1,373,010 191,121.78 345.00 65,937,014 343.00 65,554,771 382,243 2,484,015 Special Account Closing Balance 1B836L939 Net Exchange Difference 4,320,954 NSHIP 11