• MINISTRY OF ROADS AND IIIGIIW A VS • TRANSPORT SECTOR PRO.JECT (TSP) • IDA CREDIT NO. 4600-GII INDEX TO THE FINANCIAL STATEMENTS-.JUNE 2019 • Contents Page • Corporate Information 2 Abbreviations and Acronyms 3 Independent Auditors· Report on the Financial Statements 4 Statement of Resources and Expenditures 7 • Statement of Financing and Expenditures - Implementing Agencies 8 Iii Statement of Financing and Expenditures · Consolidated Accounts 9 • Statement of Financial Position I0 11111 Statement of Cash Flows 11 Notes to the Financial Statements 12 • Independent Auditors· Report on Special Account Statements (SAS) 17 • Special Account Statement- MRI I Main 19 • Special Account Statement- Implementing Agencies 20 ... Independent Auditors· Report on Statement of Expenditures (SO Es) 21 . Statement of Expenditures (SoEs) 23 . • 2 MINISTRY O.F ROADS AND IIIGIIW A YS TRANSPORT SECTOR PROJECT (TSP) IDA CREDIT NO. 4600-GH Corporate information Project Steering Committee: Chief Director Ministry of Roads And Highways-Chairman Rep. of Ministry of Finance Rep. of Ministry or Roads And I lighways Rep. of Ghana l lighway Authority Rep. of Ghana Ports And Harbours Authority Rep. of Ministry of Transport Rep. of Driver and Vchicle Licensing Authority Rep. of National Road Safety Commission Rep. of Kwame Nkrumah University of Science & Technology Rep. of Government Technical Training Centre Rep. of Department of Urban Roads . Rep. of Department of Feeder Roads Rep. of Ghana Maritime Authority Rep. of Volta Lake Transport Company Rep. of Regional Maritime University Rep. of Ghana Airports Company Limited Rep. of Ghana Civil Aviation Authority Registered office: Ministry of Roads And Highways Opposite Ghana l lighways Authority Near Pension I louse Accra Auditors: Benning, Anang & Partners Chartered Accountants and Management Consultants Abavana House • Abavana Junction 27 Kotobabi Road Accra Bankers: National Investment Bank Limited Ecobank Ghana Limited '11! • • ill 3 MINISTRY OF ROADS AND HIGHWAYS TRANSPORT SECTOR PROJECT (TSP) IDA CREDIT NO. 4600-GII ABBREVIATIONS AND ACRONYMS • The following abbreviations and acronyms arc used in this Financial Statements:- ill DFR Department or Feeder Roads • DUR Department or Urban Roads GIIA Ghana Highways Authority IDA International Development Association • KNUST Kwamc Nkrumah University or Science & Technology • MRI! Ministry or Roads And Highways MOT Ministry of'Transport • NRSC National Road Safety Commission TSP Transport Sector Project US$ United States Dollar • • • • ."!' • . • 4 ... BENNING, ANANG & PARTNERS (Chartered Accountants & Management Consultants) ... Abavana House, Abavana Junction 27 Kotobabi Road, Kotobabi P 0. Box AN 12266 Telephone Mobile Fax : +233(0)302 235669, 237205, 246626-7 : +233(0)242-206406, 244-806509 : +233(0)302 246628 Accra-North E-mail : baap1905@hotmail.com Ghana • INDEPENDENT AUDITORS' REPORT TO THE MINISTRY OF ROADS AND IIIGIIWAYS TRANSPORT SECTOR PROJECT (TSP) - IDA CREDIT NO. 4600-GII Report on the Financial Statements • Opinion We have audited the accompanying financial statements of the Transport Sector Project (TSP). !DJ\ Credit Number 4600-GII for the 18 months period ended 30th June, 2019 set out on pages 7 to 23. These financial statements comprise the Statement of Financial Position at 18 months period ended 30th June. 2019. Statement of Resources and Expenditures, Statement of Cash Flows for the period then ended and a summary of signi fie ant accounting pol ic ics and other explanatory notes . • In our opinion. the Financial Statements audited by us. which arc in agreement with the books or accounts in all material respects and conform with International Financial Reporting Standards. give • a true and fair view of the financial position of the Transport Sector Project (TSP), ID/\ Credit No . 4600-Gl I as at 30th June. 2019 and of the Statement of Resources and Expenditures and the Statement of Cash Flows for the period then ended . • Additionally. in our opinion /\II goods and services financed have been procured in accordance with the Project Agreement. Basis of Opinion We conducted our audit in accordance with International Standards on Auditing. Our responsibility under those standards are further described in the auditors responsibilities for the Audit of the financial statements section of our report. We arc independent of the Ministry of Roads and I lighways Transport Sector Project (TSP) in accordance with the International Ethics Standards • Board for Accountants· Code of Ethics for Professional Accountants (IESHA Code) together with the ethical requirements that arc relevant to our audit of the financial statements in (Ghana). and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Project Steering Committee's Responsibility for the Financial Statements Project Steering Committee of TSP under the Ministry of Roads and I lighways is responsible for the preparation and fair presentation of these financial statements in accordance with World Bank financial reporting guidelines and International Financial Reporting Standards and for such internal control as the Project Steering Committee of TSP determines is necessary to enable the preparation I of financial statements that arc free from material misstatement. whether due to fraud or error. i 5 BENNING, ANANG & PARTNERS (Chartered Accountants & Management Consultants) In preparing the financial statements, the Project Steering Committee of TSP 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 Project Steering • Committee of TSP either intends to liquidate the Project or to cease operations, or has no realistic alternative but to do so. The Project Steering Committee of TSP 1s responsible for ovcrsee111g the Project's linancial reporting process. Auditors' Responsibilities for the Audit of the Financial Statements Our objectives arc to obtain reasonable assurance about whether the financial statements as a whole arc free from material m isstatcmcnt, whether due to fraud or error, and to issue an auditors· 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 International Standards on Auditing will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and arc considered material if, individually or in the aggregate, they could reasonably be expected to influence the II economic decisions of users taken on the basis of the financial statements. As part of an audit in accordance with International Standards on Auditing, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: • Idcnti ly 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 ol' internal control. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that arc 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 II estimates and related disclosures made by the Project Steering Committee. • Conclude on the appropriateness of the Project Steering Committee's use of the going concern II 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, we arc required to • draw attention in our auditors· report to the related disclosures in the financial statements or. if such disclosures arc inadequate. to modify our opinion. Our conclusions arc based on the audit evidence obtained up to the date of our auditors· report. I lowever. 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 lair presentation . • 6 11111 BENNING, ANANG & PARTNERS (Chartered Accountants & Management Consultants) • We communicate with the Project Steering Committee regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in 11111 internal control that we idcnti fy during our audit. The Engagement Partner on the audit resulting in this independent auditors' report is Festus Eugene Adu Mantey (ICAG/P/1038) L~lft\.A._/ - A--'--J --. B~~in~ Anang &~1-;;.1ers (ICAG/F/2019/045) • Chartered Accountants Ahavana Bouse, Abavana .Junction Accra • Ghana jt-v~ ?--7 ............................ 1.... 2019 • • . • • . ill 7 THE MINISTRY OF ROADS AND HIGHWAYS • TRANSPORT SECTOR PROJECT (TSP) IDA CREDIT NO. 4600-GII STATEMENT OF RESOURCES AND EXPENDITURES FOR TIIE 18 MONTHS PERIOD ENDED 30TH JUNE, 2019 Resources • Balance B/f Transactions for the year Cummulative to Date US$ US$ US$ • Special Account Deposit Replenishments of Special Account 5,500,000 206,372,012 17,945,937 5,500,000 224,317,949 Direct Payments 26,508,904 · 26,508,904 Other Income 20,913 1,282 J.1,_195 238,401,829 17,947,219 256,349,048 Expenditures Works 193,883,991 15,012,770 208,896,761 Goods 9,041,838 209,782 9,251,620 Consultancy and Training 17,823,562 2,410,936 20,234,498 Operating Costs 817,441 23,525 840,966 Transfer to Implementing Agencies 3,507,084 289,519 3,796.,Jj03 • Bank Balances as at 30th June, 2019 225,073,916 13,327,913 17,946;532 687 243,020,448 13,328,600 23814011829 1119411~19 25~342JL48 b······-~\-··-~7-(~ ·········~·········· 1Chicr Director - MRH Finance Director - MRI-I • ~~ -- ~ .•• ~ · ; · h , , , , , , , , , , , , Project A countant •••••• ........ . • • • . " I .i •·· ~ .. •.;,,j II, :iii ll''l"II •• 11 •. ;.;. .;:;.;~ .,J,JI a,;;i:il &I.;ci E:4 -~'· a:~&,,I •\:;i;:• -· .... •• -· r11E \l[\[Srtn OF RO.\DS .\\D ll[CllW.\ \S IR\\Sl'ORT SF( TOR !'RO.IE< T (TSP) IDA CREDIT 'iO. 4(,00-(;[[ ST\TE\IE\T OF Fl\.\ \CI\<; \\IJ F\:PF\IJITl RES - l\ll'l.E\IE\Tl'-C .\GE'-CIES FOR TIIF IS \IOVI llS l'ERIOll E'-DED 30Tll Jl:",E, 2019 l\ll'LE:\1EYrtV; AGEM:IES \OTE BAL.\'-CE BROUGHT FOR\\Alrn TllE PERIOD ('lii\li\ll' LL\Tln: Financing .,rn11 ( ;11 \ llFR lll"R i\IOT TOT\L i\l RI! f;IL\ DFR DlR ~IOT TOTAL '\IRII GIi.-\ DFR Dl'R \IOT TOTAL Opct~[:1g halancc Trar:s:l·:"c:-. Rcl:c1n~L! 7~7,9.13 .:.'j.:.j(17 623.9J.l) 4M, .45 8 473,13<) 2,786,056 1.1).f1l)3 577 i'.)hjYlJ 2Y.20h 7.128 279,203 883.606 49:i ! 4.1. 73,:.548 4 75.6h4 48ll.267 3,065,259 Othe~ Income 824 4,247 478 386 85i 6,786 () ll 0 () 0 0 ll 0 0 () () 6,786 748,767 498,814 624,427 446,844 473,990 2,792,842 135,693 577 106,599 29,20(, 7,128 279,203 883,636 495, I 44 730,548 475,664 480,267 3,072,045 Expenditure Works () 0 ll () 0 () () 0 () 0 0 0 0 0 0 0 0 0 Goods 773 3.469 0 0 0 4,242 () 0 0 () 0 0 773 3,469 0 0 0 4,242 Consultancy 1%,043 0 4,377 0 48,772 249,192 0 0 () 0 0 0 196.()43 0 4.377 0 48,772 249, i 92 Operating Cost 502,828 475,657 530,136 419.619 389,925 2,318,165 134,629 577 106,399 29,100 5.491 276,196 637,457 476,234 636.535 448,719 395.4 16 2,594,361 Exchange loss 31,179 (38,652) 16,743 (10,612) (9,536) (10,878) 0 0 0 0 0 0 31,179 -38,652 16,743 -10,612 -9,536 -10.878 730,823 440,474 551,256 409,007 429,161 2,560,721 134,629 577 106,399 29, IOO 5,491 276,196 865,452 441,051 657,655 438,107 434,652 2,836,917 Bank Balance 17,944 58,340 73.171 37,837 44,829 232, 12 I 1.064 () 200 106 1,637 3,007 18,184 54,093 72,893 37,557 45,615 235,!28 748,767 446,247 624,427 446,844 473,990 2,792,842 135,693 577 106,599 29,206 7,128 279,203 883,636 495,144 730,548 475,664 480,2<,7 3,072,045 '1i I :t .,,ill •·.;;;I a.iii IRt,:8 .,,.. r,,!I a,,;;,j a,",;,'" .,.;;. aiif.iA .iji,,;jl lll;;:,;,I •;;1 .... ,I .ir;;llj lldl .}!. 11,,,ii a,;:it 9 THE MINISTRY OF ROADS AND HIGHWAYS TRANSPORT SECTOR PROJECT (TSP) IDA CREDIT NO. 4600-GH STATEMENT OF FINANCING AND EXPENDITURES - CONSOLIDATED ACCOUNTS FOR THE 18 MONTHS PERIOD ENDED 30TH JUNE, 2019 CO:'>iSOUll \TEil ACCOl !\TS BALA:S.CE BRi \1RII GHA DFR llt·R .\IOT TOTAi. Finanting Spi:c1,d .\ccnu111 Dq10~1r :'-."-(1(1.tHl() () II (I () II 5,500,00(1 0 (l (I (I 5.500.(100 0 0 (I (I 5,500.000 K..!;1\crn..;h:11c11h nf :\cuHin! l 05.0R2.2\:'i (I (J () {) I) 195,082.23::; 17.l).17_2 l \l {) {) " () il () () (I I 7,9.!7,219 21 :Ul29.-+5J I) 0 (I (I () 213,0:!9,-':-i-t :11,.::::, ](i_){lX,t)()-t {) () 2(1,."t)8,90-t () n )08.')04 11 () 26.~08, 90-t '.)!!(.'(.;{ i),!\ [";;\:!')k!l'" :l'(l''.\L'(: :·:(l ;: \![{: {i 7 {) t 7 lJ ..i., " __;<)J ":1': 112:l.(Jll} :-:c1 ::;;x : 7-; 1 ~\/ 2,786,0~6 {) {) !)5.()(/; 577 {) l()(J_)(;,; () _:,_1; -~'.){) 7_ ! 2X 279,203 0 ](i (I 883.(1.'(1 ~05 : ..;...: 7.~(: 5 :x -.; ;5 ()(1..: ..:xo " 2(17 J,065,259 0'.llLt !nLll!lCl' .'(1_1).'] 824 LZ--17 JJH .'8() 8~: J2,819 0 {) () {I {) 0 YG.0.'3 824 -L247 478 .'8(1 X5 i .f2,S19 227,127,172 7.iH,767 -!'18,814 62-lA27 J-!(,,84J .i 73,990 229,920,01-\ 17,947,219 135,693 577 lU(i,51-}9 29,206 7,128 t 8,!26,-t22 245,07.J,391 88J,J<,(I -199,391 731,026 J76,050 -181,118 2-18, 1 J6,J36 Expenditure Works \9.'.883.991 0 (J () (J (J 193,883,991 15.012.770 0 () u 0 {) 15,012,770 208.8%. 761 0 (I {I {J {J 208.896, 761 Cioods 9.041.8)8 77) 3...\6 1) (I {) {I 9,0J6,080 209 . 782 0 0 (I 0 0 209,782 9.251.620 77) 3.469 () {) {) 9,255,862 Consuntanc~ and ·11,un!n1,! ! 7.82.'.5(<'~ \ 9(1.043 0 4.:n7 0 -l8.772 18,072,75.J 2_410.936 0 0 {) 0 0 2,410,936 20.n4,49s 1%.04) {) 4.377 {) 48. 772 20,.183,690 Operastmg cost\ 817.4.J I 502.828 475.657 530. J ',6 419.619 089.924 3,135,605 23.525 134,629 '-77 106 . .'99 20.100 5.491 290,721 840.966 6) 7,457 4 76.2.'4 636,535 . i.,9.7i9 .'95,415 3,J26,326 lransfrres to Agenc1c~ 3.507.084 0 0 0 0 3,507,08.1 289.519 () 0 {) {) 0 289,519 ).796.60) 0 0 0 0 3,796,603 !·:.._change Loss () I 1.4'6) I 18.16/,) 0 ( 18.518) (17.%8) (56,078) 0 0 0 (I 0 0 0 0 -1.426 -18.166 -18.5 18 0 - l 7,lJ68 -56,078 225,073,916 698,218 460,960 534,513 .101.101 420,728 227 .589,-436 17,946,532 134,629 577 lfl(1,J99 20,100 5,491 18,213,728 2J3,02U,JJ8 832,847 461,537 6J0,912 421,201 J26,2 I 9 2J5,803, I 6J Bun~ Balancl' 13.327,91) 50.549 3 7.854 89.914 45. 743 53.262 13,605,235. 687 1.064 {) .200 106 L637 3,694 2.053.943 51.6 IJ 37,R54 90.114 5-4,8-49 54.899 .2.343,272 238,JOl,829 748,767 498,814 62J.427 J46,84J ..i73,99U 241,19.J,671 17.9-17,219 135,693 577 106,599 20,206 7,128 18,217,--'22 2.15,074,391 88J,460 J99,391 731,026 476,050 -181,118 2-'8, l--'6.--'36 ' I 1() MINISTRY OF ROADS AND HIGHWAYS TRANSPORT SECTOR PROJECT (TSP) I i IDA CREDIT NO. 4600-GH STATEMENT OF FJNANCIAL POSITION AS AT 30TH JUNE, 2019 18 Months to June 2019 2017 Note US$ USS Assets employed Current assets Bank Balances 3 3,694 I 2.073.263, Accumulated Non-Capital Expenditure 4 243,017,440 J 225,038,489 I • Total assets 243,021,134 227,111,752 Financed by: International Development Association 5 242,998,939 , 227.090.839 Other Income 6 22,195 ~ 20.913 243,021,134 227,111,752 Finance Director - MRH • . 11 • MINISTRY OF ROADS AND HIGI-IWA YS TRANSPORT SECTOR PROJECT (TSP) IDA CREDIT NO. 4600-GH STATEMENT OF CASH FLOWS FOR THE I 18 MONTHS PERIOD ENDED 30TH JUNE, 2019 I 18 Months to June 2019 2017 Financing US$ US$ IDA Direct Payments Replenishment of Special Account 15,908, I 00 12,452,888 Other Income 1,282 11,765 , ii Total Funds Available Project expenditures 15,909,382 12,464,653 , Works Goods 15,012,770 209,782 12.494.670 • Consultancy & Training Operating Costs 2,410,936 313,044 633.927 1,372.725 Exchange (Gain)/ Loss 32,419 18,090 --- 17,978,951 14,519,412 Net Cash Inflow/(Outflow) (2,069,569) (2,054,759) Analysis of Changes in Cash Opening Bank Bala1~ce 2,073,263 4.128.022 ·-~ Net Cash Jnflow/(Outflow) (2,069,569) _ _12,054:25_9) iilll Closing Bank Balance 3,694 -~}_6~ ''1'1 Represented by: 111 Bank Balances International Development Association 687 2.037.836 Implementing Agencies 3,007 35.427 ---- Balance as at 30th June, 2019 3,694 2,Q73,2~~~ • -~ • . 12 THE MINISTRY OF ROADS AND HIGHWAYS TRANSPORT SECTOR PROJECT (TSP) IDA CRED NO. 4600-GH NOTES TO THE FINANCIAL STATEMENTS .FOR THE 18 MONTHS PERIOD ENDED 30TH JUNE, 2019 1. Transport Sector Pro,ject (TSP) (a) Financing Agreement /\ Credit No. 4600-GH was signed between the Government of Ghana (GoG) and the International Development Association (IDA) of the World Bank on the August 14, 2009 for a credit in an amount up to the equivalent of One hundred and fifty million five hundred thousand Special Drawing Rights (SOR 150,500,000) to assist in financing the Transport Sector Project (TSP). The total estimated cost for the Project amount to US$225 million. (b) Project Description The objectives of the Project are: to improve mobility of. goods and passengers through reduction of travel time and vehicle operating costs and to imprnve road safety standards. The Project consists of the following seven parts:- a. Support to MRII Support to MRI I to: l. carry out selected feasibility studies related to its investment program; 2. integrate trunk. urban, and feeder road networks and associated service activities into a geographical information system, strengthen road operating and safety standards and axle load control. strengthen the management of road financing, and carry out other road sector policy and institutional reforms; . 3. strengthen its management information system and prepare a human resource development strategy: and 4. participate in national and international training courses relevant to its functions. b. Support to Road Sector and Educational Entities l. Support to DYLA to: (a) develop improved driver and vehicle licensing methods and I standardize licensing procedures, permits and collection of associated revenue; (b) develop improved procedures for enforcement of driver and vehicle licensing regulations; and (c) develop improved ground facilities for driver testing, 2. Support to NRSC to: (a) obtain road safety equipment; (b) produce and distribute handbills, information and publicity material to raise awareness of road safety; (c) provide facilities and equipment for emergency response services; and (d) organise related road safety and emergency response training activities for selected NRSC personnel. 3. Support to KNUST to: (a) construct and equip teaching and laboratory facilities; and (b) develop and deliver post-graduate training courses on the efficient and effective management of the transport sector. 4. Support to GTTC to: (a) develop and expand its facilities for artisans' training in the road ' sector. including the construction and furnishing of lecture halls and lodging and workshop • facilities: (b) set up, in collaboration with NRSC and DVLA, a pilot driving academy; and (c) educate mechanics on vehicle maintenance standards . • 13 THE MINISTRY OF ROADS AND HIGHWAYS TRANSPORT SECTOR PROJECT (TSP) IDA CRED NO. 4600-GH I NOTES TO THE FINANCIAL STATEMENTS FOR THE • 18 MONTHS PERIOD ENDED 30TH JUNE, 2019 c. Improvement of Trunk Roads Support to DYLA to: I. rehabilitate the trunk road between Ayarnfuri and Asawinso, including the provision of technical assistance for the supervision of the works and related environmental and social safeguards measures; and 2. strengthen its technical capacity to improve t'.unk roads including the provision of axle load equipment.. d. Improvement of Urban Roads and Infrastructure Support to DUR to: I. rehabilitate the Burma Camp Road in Accra, including the provision of technical assistance for the supervision of the works and related environmental and social safeguards measures; 2. rehabilitate the Giffard Road in Accra, including the provision of technical assistance for the supervision of the works and related environmental and social safeguards measures; 3. (a) improve public transport infrastructure in Accra along the bus rapid transport corridor and tributaries in Accra, including bus stations, junction improvements, terminals and depots, and including the provision of technical assistance for the supervision of the works and related environmental and social safeguards measures; and (b) prepare a public transport management plan for central Accra; and 4. Strengthen its technical capacity to improve urban roads and infrastructure. e. Improvement of Feeder Roads Support to DFR to carry out minor rehabilitation and improvement works of selected feeder roads throughout the Recipient's territory, including technical assistance for the supervision of the works and related environmental and social safeguards measures, and to strengthen its ii technical capacity to improve feeder roads. f. Support to MOT and other Transport Sector Entities I. Support to MOT to: (a) make the GRDA operational; (b) carry out studies on the development of pub! ic-private partnerships in the transport sector; and (c) build its capacity in transport planning, procurement, financial, project and safeguards management. 2. Support to GACL to: (a) carry out detailed design, environmental and social studies for the adaptation of Takoradi airport for civilian purposes; and (b) prepare a master plan for development of regional airports. 3. Support to GCAA to carry out studies on aviation sector development and develop regulations for the aviation industry. 4. Support to GP! IA to carry out a feasibility study for the dualization of the Meridian Road in Terna. II I I • THE MINISTRY OF ROADS AND HIGHWAYS 14 I TRANSPORT SECTOR PROJECT (TSP) IDA CRED NO. 4600-GH I NOTI<:S TO THE FINANCIAL STATEMENTS FOR THE 18 MONTHS PERIOD ENDED 30TH JUNE, 2019 I 5. Support to GMA to carry out a feasibility study for the improvement of transportation on Volta Lake. 6. Support to VLTC to carry out feasibility studies for the development of landing stages and reception facilities on Volta Lake. 7. Support to RMU to improve its training capacity to provide maritime training services for the West Africa Region. I g. Project Management Provision of technical assistance. vehicles, equipment and other operational support to the Implementing Agencies to carry out the coordination, administration, monitoring, evaluation and audit of the Project. (c) Repayment of Credit The Governrnerit of Ghana shall repay the principal arnount)'.)f IDA Credit by semi-annual instalments payable on January l and July 1, in each year, commencing July 1, 2019 and ending January L 2044. The principal amount of the crediUepayable from January 1, 2019 to January I, 2029 shall be 1.25% of the principal amount withdrawn, and thereafter, each instalment shall be 2.5% of the principal withdrawn until the last instalrr{ent is paid on January 1, 2044. (d) End of Project The expected closing date for the project was June 30, 2018. However, the project has been extended for 18 months period ended 30th June, 2019. 2. Accounting Policies The following arc the significant accounting policies adopted in the preparation of these financial statements . • a. Basis of preparation (i) Statement of compliance The financial statements have been prepared in accordance with International Financial Reporting Standard (IFRS) and its interpretations adopted by the International Accounting Standards Board (IASI3). (ii) Basis of measurement The financial statements have been prepared under the historical cost convention, as modified by the revaluation of investment property, financial assets and financial liabilities at fair value. (iii)Use of estimate and judgement The preparation of financial statements in conformity with IFRSs requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts or assets and liabilities. income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the c ircurnstances, the resu Its of which form the basis of making the judgements about carrying values or assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates . • 15 THE MINISTRY OF ROADS AND HIGIIW A YS TRANSPORT SECTOR PROJECT (TSP) IDA CRED NO. 4600-GH NOTES TO THE FINANCIAL STATEMENTS FOR THE 18 MONTHS PERIOD ENDED 30TH JUNE, 2019 The estimates and underlying assumptions arc reviewed on an ongoing basis. Revisions to accounting estimates arc recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods. b. Presentation of financial statements , (i) Functional and presentation currencies The financial statements arc presented in United States Dollars (US$) which is the reporting currency for the financial statements. I (ii) Transactions and balances Transactions in foreign currencies are converted at the rate ruling on the day the transaction took place. Current assets and liabilities denominated in foreign currencies arc translated at the rate of exchange ruling at the balance sheet date and property. plant and equipment translated at the rate of exchange ruling at the time of acquisition. Gains or losses arising on foreign currency transactions arc credited to or charged against recurrent expenditure in the period in which they arise. (c) Property, plant and equipment (i) Recognition and measurement Property, plant and equipment represents the expenditure incurred mainly in acqu1r111g office equipment and motor vehicles for use by the National and Regional Co-ordinating Offices. This is measured at the actual contracted cost of purchase. Cost includes expenditures that are directly attributable to bringing the asset to the location and working condition necessary for it to be capable of operating in the manner intended by management. Purchased software that is integral to the functionality of the related equipment is capitalised as part of that equipment. f (ii) Subsequent costs L. Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate, when it is probable that the future economic benefits associated with r I the item will flow to the Project and the cost of the item can be measured reliably. All other repairs and maintenance expenditures arc charged to the statement of sources and uses of funds during the financial period in which they arc incurred. (iii) Depreciation No depreciation is charged in the financial statements. (d) Accumulated Non-Capital Expenditure All non-capital items arc shown in the financial statements under "'Accumulated Non- Capital Expenditure". ' i (c) Income Income is recognized on cash basis and credited directly to the respective donors account. 16 MINISTRY OF ROADS AND IIIGIIW A YS TRANSPORT SECTOR PROJJ<:CT (TSP) IDA CREDIT NO. 4600-GII NOTES TO THE -FINANCIAL STATEMENTS FOR THE 18 MONTHS PERIOD ENDED 30TH JUNE, 2019 - (continued) "I ,~! 3. Bank Balances 18 Months • to June 2019 US$ 2017 US$ a) Special Account - IDA 687 2,037,836 • b) Special Account - Implementing Agencies 3,007 }_,,694 35,427 2,073,263 4. Accumulated Non-Capital Expenditure • This represents payments for non-capital items of the Credit's eligible expenditures and .a consists or: Cumulative . Balance at 1.1.2018 US$ Transactions for the Year US$ To Date 30.6.2019 US$ Works 193,883,990 15,012,770 208,896,760 Goods 9,046,006 209,782 9,255,788 Consultancy 18,072,754 2,410,936 20A83,690 Operating Costs 4,028,527 313,044 4,341,571 Exchange Loss 7,212 32,419 39,631 225,038,489 17,978,951 243,017,440 5. International Development Association (IDA) The International Development Association's contribution to TSP is shown in the Financial Statements as follows: 18 Months to June 2019 2017 US$ US$ Balance at l st January 227,090,839 214,637,951 Disbursed during the year 15,908,100 12/152,888 Balance at 31st December -~~!298,939 227,090,839 !!fl!! 6. Other Income fl This comprises interest earned on the balances from the IDA Main Account and Accounts held by the Implementing Agencies. 18 Months to June 2019 Implementing 2017 IDA Agencies IDA US$ US$ US$ Balance at l st January 20,913 9, !118 Additions during the year 1,282 11,765 Balance at 31st December 22,195 20,913 11111 17 'ii BENNING, ANANG & PARTNERS (Chartered Accountants & Management Consultants) I Abavana House, Abavana Junction 27 Kotobabi Road, Kotobabi P 0. Box AN 12266 Telephone Mobile Fax • +233(0)302 235669, 237205, 246626-7 • +233(0)242-206406, 244-806509 • +233(0)302 246628 Accra-North E-mail • baap1905@hotmail.com Ghana INDEPENDENT AUDITORS' REPORT ON SPECIAL ACCOUNT STATEMENTS (SAS) TO TIIE MINISTRY OF ROADS AND HIGHWAYS TRANSPORT SECTOR PRO.JECT (TSP) - IDA CREDIT NO. 4600-Gll Report on the Special Account Statements Opinion We have audited the accompanying Special Account Statements of the Transport Sector Project (TSP) tor the 18 months period ended 30th June, 2019 on pages 19 and 20. In our opinion. the Special Account Statements give a true and fair view of the financial position of the Special Accounts of the Transport Sector Project (TSP) as at 30th June. 2019 and conform with International Financial Reporting Standards. Basis of Opinion We conducted our audit in accordance with International Standards on Auditing. Our responsibility under those standards arc rurthcr described in the auditors responsibilities for the Audit of the financial statements section or our rcpo1i. We arc independent of the Ministry of Roads and Highways Transport Sector Project (TSP) in accordance with the International Ethics Standards Board for Accountants' Code of Ethics for Professional Accountants (IESBA Code) together with the ethical requirements that are relevant to our audit of the financial statements in (Ghana). and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. The Ministry of Roads and Highways Project Steering Committee Responsibility for the Special Account Statements The Ministry of Roads and I lighways and its agencies arc responsible for the preparation and fair presentation or the Special Account Statements in accordance with International Financial Reporting Standards and for such internal control as the Ministry or Roads and Highways determines is necessary to enable the preparation or the Special Account Statements that arc free from material misstatement. whether due to fraud or error. In preparing the Special Account Statements. the Ministry or Roads and I lighways is responsible for assessing the Transport Sector Project's ability to continue as a going concern, disclosing. as applicable. matters related to the going concern and using the going concern basis of accounting unless the Ministry of Roads and I lighways. either intends to liquidate the Project, or to cease operations or has no realistic alternative to do so. The Ministry of Roads and Highways is responsible for overseeing the Transport Sector Project's financial reporting process. Auditors' Responsibilities for the Audit of the Special Account Statements Our objectives arc to obtain reasonable assurance about whether the special account statements as a whole arc free from material misstatement. whether due to fraud or error. and to issue an auditors' 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 International Standards on Auditing will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and arc considered material iL individually or in the aggregate. they could reasonably be expected to inllucnce the economic decisions of users taken on the basis of the special account statements . • 18 • :iii • BENNING, ANANG & PARTNERS (Chartered Accountants & Management Consultants) As part of an audit in accordance with International Standards on Auditing. we exercise professional _judgment and maintain professional skepticism throughout the audit. We also: • Identify and assess the risks of material misstatement of the special account statements. whether • \\11111 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 or 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 m • procedures that arc 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 or accounting estimates and related disclosures made by the Project Steering Committee. • Conclude on the appropriateness of the Project Steering Committee's 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, we arc required to draw attention in our auditors' 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 auditors' report. However, future events or conditions may cause the Project to cease to continue as a going concern. Ill • Evaluate the overall presentation, structure and content of the special account statements, including the disclosures, and whether the special account statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with the Project Steering Committee regarding, among other matters. the planned scope and timing of the audit and significant audit findings. including any significant deticicncics in internal control that we idcnti fy during our audit. The Engagement Partner on the audit resulting in this independent auditors' report is ne Adu Mantey (ICAG/P/1038) ~~ • t "---"'·--- Bennin , Anang & Partners (ICAG/F/2019/045) Chartered Accountants Abavana House, Abavana .Junction Accra prnna ~/ ~~'.~............'( .... 2019 • ) 11111 19 MINISTRY OF ROADS AND IIIGIIWAYS TRANSPORT SECTOR PRO.JECT (TSP) IDA CREDIT NO. 4600-GH SPECIAL ACCOUNT STATEMENT - IDA MAIN FOR THE 18 MONTHS PERIOD ENDED 30TII .JlJNE, 2019 18 Months to .June 2019 2017 US$ US$ Bank Balance at l st January 2,037,836 4,074,505 World Bank Replenishments 15,908, IO l 12,452,888 Interest Received --~-- 1,281 ----~ 11,765 __ 17,947,219 16,539}58 ~ j Deduct: Payment for Goods and Services (NON-SOEs) 17,657,013 (13,538,391) Transfer to Implementing /\gencies -- __ 289,519 ~- (962,931) 17,946,532 (14,501,322) Bank Balance at 30th .June/31st December 687 -~-},Q3_7,836 • E • 1111 20 MINISTRY OF ROADS AND IIIGIIWAYS TRANSPORT SECTOR PROJECT (TSP) IDA CREDIT NO. 4600-GII SPECIAL ACCOUNT STATEMENT- IMPLEMENTING AGENCIES FOR THE 18 MONTHS PERIOD ENDED 30TH JUNE, 2019 18 Months to .June 2019 2017 US$ US$ Bank Balance at l st January 35,427 53.517 Replenishments from ID/\ Main Special /\ccount 2'13.776 230.521 279,203 284,038 Interest Received 4.107 279,203 288,145 Deduct: Payment for Goods and Services (SOEs) 276,196 ~ __ (252,718) Bank Balance at 30th June/31st December 3,007 35,427 • '~ Ill II 21 BENNING, ANANG & PARTNERS (Chartered Accountants & Management Consultants) Abavana House, Abavana Junction Telephone · +233(0)302 235669, 237205, 246626-7 27 Kotobabi Road, Kotobabi Mobile : +233(0)242-206406, 244-806509 P O Box AN 12266 Fax : +233(0)302 246628 Accra-North E-mail : baap1905@hotmail.com Ghana INIH:PENDENT AUDITORS' REPORT ON STATEMENT OF EXPENDITURES (SOEs) TO nm MINISTRY OF ROADS AND IIIGIIWAYS • TRANSPORT SI<:CTOR PROJECT (TSP) - IDA CREDIT NO. 4600-GII Report on the Statement of 1<:xpenditures Opinion We have audited the accompanying Statement of Expenditures (SO Es) or Transpo1i Sector Project (TSP). IDA Credit No. 4600-GI I for the 18 months period ended 30th June, 2019 set out on page 23. In our opinion, the Statement of Expenditures (SOEs) audited by us, which are in agreement with the books of accounts in all material respects and conform with International Financial Reporting Standards, give a true and fair view of the financial position of the Transport Sector Project (TSP), IDA Credit No. 1\600-Gll as at 30th June. 2019. /\dditionally, in our opinion: a. with respect to the Statement or Expenditures (SOEs) adequate supporting documentations have been maintained to support claims to the !DA for reimbursements or expenditures incurred in accordance with the requi rem en ts or the IDA Credit Agreement, and b. which expenditures arc eligible for financing under the Development Credit Agreement. Basis of Opinion We conducted our audit in accordance with International Standards on Auditing. Our responsibility under those standards are further described in the auditors responsibilities for the Audit of the financial statements section of our report. We are independent of the MINISTRY OF ROADS AND IIIGl!WJ\YS Transport Sector Project (TSP) in accordance with the International Ethics Standards Board for Accountants' Code of Ethics for Professional Accountants (IESBA Code) together with the ethical requirements that are relevant to our audit of the financial statements in (Ghana), and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. The Ministry of Roads and Highways Responsibility for the Statement of Expenditures The Ministry of Roads and I lighways and its agencies are responsible for the preparation and fair presentation of the Statement of Expenditures in accordance with International Financial Reporting Standards and for such internal control as the Ministry of Roads and I lighways determines is necessary to enable the preparation of the Statement of Expenditures that are free from material misstatement, whether due to fraud or error. In preparing the Statement of Expenditures, the Ministry or Roads and Highways is responsible for assessing the Transport Sector Project's ability to continue as a going concern, disclosing. as applicable, matters related to the going concern and using the going concern basis or accounting unless the Ministry of Roads and l lighways, either intends to liquidate the Project, or to cease operations of has no realistic alternative but to do so. The Ministry or Roads and I lighways is responsible for overseeing the Transport Sector Project's financial repo1iing process. 1111 111111 • 22 • BENNING, ANANG & PARTNERS • (Chartered Accountants & Management Consultants) Iii Auditors' Responsibilities for the Audit of the Statement of Expenditures Our objectives arc to obtain reasonable assurance about whether the statement of expenditures as a whole arc free from material misstatement, whether due to fraud or error. and to issue an auditors" 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 International Standards on Auditing will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and arc considered material if. individually or in the aggregate. they could reasonably be expected to intlucncc the economic decisions of users taken on the basis of the statement or expenditures. As part of an audit in accordance with International Standards on Auditing. we exercise professional • judgment and maintain professional skepticism throughout the audit. We also: • Identify and assess the risks of material misstatement or the statement of expenditures. whether due to fraud or error. design and perform audit procedures responsive to those risks, and obtain audit evidence that is sutlicient 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 arc appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness or the Project's internal control. • • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Project Steering Committee. • Conclude on the appropriateness of the Project Steering Committee's use of the going concern basis or 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. Ir we conclude that a material uncertainty exists. we arc required to draw attention in our auditors· report to the related disclosures in the statement of expenditures or. if such disclosures arc inadequate. to modify our opinion. Our conclusions arc based on the audit evidence obtained up to the date of our auditors· report. l lowcvcr. 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 statement of expenditures. including the disclosures. and whether the financial statements represent the underlying transactions and events in a I manner that achieves fair presentation. We communicate with the Project Steering Committee regarding, among other matters, the planned scope and • I timing of the audit and significant audit findings. including any significant deficiencies in internal control that \\ c idcnti iy during our audit. The Engagement Partner on the audit resulting in this independent auditors' report is . Festus Eugene Adu Mantey (ICAG/P/1038) ~A~····J ~ - - B~inl!, ~~ang & Partners (ICAG/F/2019/045) Chartered Accountants Ahavana !louse, Abavana .Junction Accra ~t~. . . ~/.,.2019 • :I I 11 ••.41 a I 11,);;I a;,. .:i 11;;;.,t •. ,;:,;:I •.;,. ·"~ .,,;.,It a~r·I 9i£iki ... ~ a, .1~ a,,,,;.1 • . •~-,.~ ·-· 23 THE MINISTRY OF ROADS AND HIGHWAYS TRANSPORT SECTOR PROJECT (TSP) IDA CREDIT NO. 4600-GH STATEMENT OF EXPENDITURES (SOEs) FOR THE 18 MONTHS PERIOD ENDED 30TH JUNE, 2019 BALANCE BROUGHT FORWARD TRANSACTIONS DURING THE YEAR CUMMULATIVE TO DATE IDA MAIN MRH GHA DFR DUR MOT TOTAL IDA MAIN MRH GHA DFR DUR MOT TOTAL IDA MAIN MRH GHA DFR DUR MOT TOTAL USS USS USS USS USS USS USS USS USS USS USS USS USS USS USS USS USS USS USS USS USS Wc·,s '93.883.99' '93,883,99' '58'2}78 ;5,8'2,778 288.896.76' 288.896 76' G::::::c:s 9.8L'.. 838 9.8L' .838 289.782 289,782 9.25' .628 9.25' .628 Cc s" :a"cy & - •a" 0 0 ; '7 .823.562 '7,823.562 2.L' 8.936 2.L'G,936 28.23L.L98 28,23L,L98 0;::e,.a:.'."'g C:::s:s 8'.7.LL' 8'i?L4'. 23,525 23,525 BL0,966 848,966 - ra 0 s'e• :c Agencies 3,5C7,G8L 3,507,GBL 289 5;9 289,519 3,796,603 3,796,603 225,073,916 225,073,916 17,946,532 17,946,532 243,020,448 243,020,448