GOVERNMENT OF SIERRA LEONE HEALTH SERVICE DELIVERY AND SYSTEM SUPPORT PROJECT (HSDSSP) P153064 MINISTRY OF HEALTH AND SANITATION FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2018 IBDO Ministry of Health and Sanilation Health Service Delivery and Systent Support Project (IISDSSP) Financial Slatements For ihe year ended 31 December 2018 CONTENTS PAGE(S) General Information Report of the Project Management 2 Independent Auditors' Report 3 - 6 Statement of Resources and Expenditure 7 -8 Statement of Receipts and Payments 9 Statement of Financial Position 10 Statement of Cash Flows 11 Notes to the Financial Statements 12 - 18 Report of the Independent Auditors on the Project's Designated Accounts 19 Specia Account Statement - Standard Chartered Bank 20 - 21 Ministry of Health and Saiiration Health Service Deliverl und System Support Project (H1SDSSP) Financial Statements For the year ended 31 December 20/8 GENERAL INFORMATION ADDRESS Ministry of Health and Sanitation 30 Old Railway Line Tengbeh Town Freetown, Sierra Leone TEAM LEAD Mr. Alpha Umaru Jaltoh FINANCIAL SPECIALIST Mr. Sorie Daniel Kamara BANKERS Standard Chartered Bank (SL) Lightfoot Boston Street Freetown AUDITORS BO Regent House 12 Wilberforce Street Freetown 11iitr flealth and Sritatio. Heallh Service Deliverr rnd .rsteni .Vpp*rr Prject (MIST)SP 1-or Oie wr emd~ 31 /Xerrrr-21 REPORT OF THE PROJECT MANAGEMENT The Project Management has pleasure to report as follows: Statement of Responsibilities of the Project Management The Projects Financing Agreement dated on 4 August 2016 requires the Project Management to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the project and of the resources and expenditure for that period. In preparing these financial statements, the Project Management is required to: * Select suitable accounting policies and then apply them consistently; * Make judgements and estimates that are reasonable and prudent; * State whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and * Prepare the financial statements on a going concern basis unless it is inappropriate to presume that the project will continue its activities. The Project Management is also responsible for keeping proper accounting records, which disclose with reasonable accuracy at any time the financial position of the project and to enable them to ensure that the financial statements comply with International Financial Reporting Standards. The Project Management is also responsible for safeguarding the assets of the project and for taking reasonable steps for the prevention and detection of fraud and other irregularities. Financial Statements The annexed financial statements disclose the financial activities of the project for the year ended 31 December 2018, and were approved by management on 2019 and signed on its behalf by: Name Signature Chief Medical Officer Name Signa e Team Lead Integrated Health Project Administration Unit Financial Specialist Signature Hame Chief Medical Officer Name Team Lead Integrated Health Project Administration Unit Financial Specialist BDO Afllstry of Health andlSainitation Health Service Deliver, and SytemlSupport Project (JSDSSP) Fr the yea onded 31 Dccumber 208 REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS Opinion We have audited the financial statements of Health Service Delivery and System Support Services Project set out on pages 7 to 18 which comprise the statement of financial position as at 31 December 2018, the statement of resources and expenditure, statement of receipts and payments and statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies. In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Project as at 31 December 2018 and its financial performance and its cash flows for the year then ended in accordance with the accounting policies adopted by the Project as stated in note 2 of the financial statements and the requirements of the Project Agreement Document. 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 Auditors' Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Project in accordance with the International Ethics Standards Board for Accountants' Code of Ethics for Professional Accountants (IESBA Code), and we have fulfilled our other ethical responsibilities in accordance with the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Key Audit Matters Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period. We have determined that there are no such matters to report. Other Information Management is responsible for the other information. The other information comprises the information included in the Annual Report, but does not include the financial statements and our auditors' report thereon. Our opinion on the financial statements does not cover the other information and we do not express 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 doing so, 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, 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. 3 DO, a Sierra Leone pa:tershp Is a mcmber rtO9 int : ] aU ½o n lim:ted by guarIntee, ano form pat of th iternatana BOO network of independent member firms, BDOs the brand anme for the BDO network anc for ech of the BDO Member Firms Miit*offHealth and Sonitation JB D O Health Service Delivery and System Supporr Project (HSDSp) Financial Statem,ents , or the year ended 31 Decem ber 2181 REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS (Contd) Responsibilities of Management and Those Charged with Governance for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with IFRSs, and for such internal control as 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 financial statements, management 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 management 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 financial reporting process. Auditors' 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 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 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 judgement 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 controls 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. 4 BDO. e tn dt m emb erBO a Setwor andfoea chof te 80 Membe Firm t BDO netz ca-a ato i Iderec mn ma t ima mO 1 Ia aMn nae tr Lh BO eta. arc tar eac ,of the BO r im Firm, Ministry ofHealth and Sntation Health Service Delivery and Systern Support Project (H SDSSF) Financial Saeet For the Year ended 31 Decembr 201 REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS (Contd) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. Conclude on the appropriateness of management's use of the going concern bas's 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 are 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. 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 entities 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 audit. We remain solely responsible for our audit opinion. 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. Provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards. From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditors' report unless Law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. 5 8DO,aS raL r,p:- v' rry '3Drrr-rviL'>< :rr La ~iar:e e ric c4rr' -l e r et ;ei..~ ~ ~ ~ ~ ~ ~ ~ ~ ~~~~~rn or of, .oprdn -ebe ii-.[O iePer aefr r L oeeaCI,cci te[O cabr i, 1Mini1Strvu ofIeakth and Sonitadion flHeakh Stri-ice Dlirer), endI SYSIF Supporl Projec VIIDSSP) 1o- hear ended 31 Docnber/ REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS (Contd) Report an Other Legal and Regulatory Requirements The Project complied with all legal and regulatory requirements. The engagement partner on the audit resulting in this independent auditors' report is Brinsley Johnson. Freetown, Sierra Leone TA < 1K; 2019 BDO, a $erra Leone artne h'- . i a e T of BDO m aa :mn Lhted Kco mpa n r tby guaranree, nd crms par: of the nternion- l BDO network of independeriT irerin firms. 5DOs the rand nrme for the BOO retwork and for rech of the BDO Member Firms PROJECT: P153064 - HEALTH SERVICE DELIVERY AND SYSTEM SUPPORT PROJECT (HSDSSP) STATEMENT OF RESOURCES AND EXPENDITURE (IDA FUNDING) Notes IDA 58460 TF A2598 Total IDA 58460 TF A2598 Total 2018 2018 2018 2017 2017 2017 Resources: uS US S uS $ us 5 USs US $ Bank balance brought forward 329,205 - 329.205 Adjustment for prior year exchange difference Receipts Withdrawal application 3 1,488,677 4,559,174 6,047,851 500.000 500,000 1,0c0,000 Interest earned Cash refund Total receipts 1,488,677 4,559,174 6,047,851 500,000 500,000 1,000,000 Total resources 1,817,882 4,559,174 6,377,056 500,000 500,000 1,000,000 Expenditure 1) Goods, works, consultant services, non, consulting services, training and operating costs under part 0% A. 1(1) of the Project (except part A.1)(L.b) of 909,664 . 909,664 17,759 - 17,759 2) Incentive payments for 0% Eligible Community Health - 20 - Workers under part A.1(1.b) of the Project 3i Goods, works, consultant services, non- consulting services, training and 0% operating costs under part A 1(2) of the Project 12,372 12,372 110,123 110,123 4) Goods, works, consultant services, non- consulting services, training and 0% operating costs under part A. 1(2) of the Project 2,932,495 2,932,495 - 4,690 4.690 5) Goods, works, consultant services, non- consulting services, training and 0% operating costs tinder part A.2(2.a), (2-b and (2.c) of the Project 6) Goods, works, consultant services, non- consulting services, training and 0% operating costs under Part t. 1(1. a) and ( sd) of the Project 615,701 - 615,701 5,603 - 5,603 7) Stipends for Eligible Post Graduate Medical Students and 100% Eligible Trainee Nurses under Part B,1(1.b) of the Project - - 8) Goods, works, consultant services, training and 1,7000,000 70% operating costs under Part B.tIi.c of the Project 58,062 135,479 193,541 126 295 421 Balance cif 1,595,799 3,067,974 4,663,773 133,611 4,985 138,596 .V/iniltrL 4 ialth nd Sanitfi HeEr, Dfiic - ..e.i1 a'- s, Auppr1 P"rer (HNSsPJ PROJECT: P153064 - HEALTH SERVICE DELIVERY AND SYSTEM SUPPORT PROJECT (HSDSSP) STATEMENT OF RESOURCES AND EXPENDITURE (IDA FUNDING) (Contd) Notes IDA 58460 TF A2598 Total IDA 58460 TF A2598 Total 2018 2018 2018 2017 2017 2017 usS $S us$ us$ US5 Lis $ usS Expenditure BaLance bIt 1,595,799 3,067,974 4,663,773 133,611 4,985 138,596 9) Goods, works, non-cons1_lting services, training and 0% operating costs under Part 8.2(1.a) of the Project 516,753 - 516,753 524,060 - 524,060 10) Goods, works, consultant services, training and 0% operating costs under part B.2(1.b) and (1.tc) of the Project 51,652 - 51,652 7,008 - 7,008 11) Goods, works, consultant services, non- consulting services, training and 0%1 operating costs under part B.3 of the Project 2,751 2,751 2,200 - 2,200 Project- Exchange gain - - (81,043) - (1,068) Total expenditure 2,166,955 3,067,974 5,153,856 666,879 4,985 670,796 Result for the year (349,073) 1,491,200 1,223,170 (166,879) 495,015 329,204 Represented by 5 Cash and cash equivalents 10,074 (32,360) Payables (53,574) (20,257) Advances 1,266,670 381,821 1,223,170 329,204 6iSx-_ ----------J Name Chief Medical Officer Name Team Lead integrated Health Project Administration Unit ld Financial Specialist IMPi 0nifr of lihr a d V,nifa;n, itadith Srle tkli,er, r,taSEnSr ritjs'e ril51ALY1-) PROJECT: P153064 - HEALTH SERVICE DELIVERY AND SYSTEM SUPPORT PROJECT (HSDSSP) STATEMENT OF RECEIPTS AND PAYMENTS BY COMPONENT Notes IDA 58460 TF A2598 Total IDA 58460 TF A2598 Total 2018 2018 2018 2017 2017 2017 Resources 5 US$ Bank balance brought forward 329,205 - 329,205 - Receipts Withdrawal application 3 1,48B,677 4,559,174 6,047,851 500,000 500,000 1,000,000 Interest earned 3 Cash refund J Total receipts 1,817,882 4,559,174 6,377,056 500,000 500,000 1,000,000 Total resources 1,817,882 4,559,174 6,377,056 500,000 500,000 1,000,000 Payments Use of funds by Component - H5DSSP Component I - Health Service Delivery 4 948,792 2,905,739 3,854,531 127,852 4,690 132,572 Component 2 - Health Systems Support 4 339,785 1,040,613 1,380,398 538,997 295 539,292 Total payment 1,288,577 3,946,352 5,234,929 666,879 4,985 671.864 Excess of receipts over payments 529,305 612,822 1,142,127 166,879) 495,015 328,136 Exchange gain-effect of movement in exchanpo rate on bank balance 81,043 1,068 Payable 53,574 20,257 Advances (1,266,670) 381,821) Cash balance at 31 December 5 10,074 132,360) 10,074 (32,360) Afinimty ofHealth and Sanitation Health Ser/ce Delivery and Sjste, Support Project (HSDSSP) FinaucialS twemewns 1or the Year ended31 December 201S PROJECT: P1 53064 - HEALTH SERVICE DELIVERY AND SYSTEM SUPPORT PROJECT (HSDSSP) STATEMENT OF FINANCIAL POSITION FOR IDA 58460 AND TF A2598 Notes Total Total 2018 2017 us $usS Assets Cash and cash equivalents 5 10,074 (32,360) Advances 1,266,670 381,821 1,276,744 349,461 Represented by: Funding and liabilities Deferred income 6 1,223,170 329,204 PayabLes 53,574 20,257 Total receipts 1,276,744 349,461 10 Alinistry ofHealth and Sanitation Health Service Delirery and System Support Project (HSDSSP) Finacial Staiements For ti yawr ended 31 December 2018 PROJECT: P153064 - HEALTH SERVICE DELIVERY AND SYSTEM SUPPORT PROJECT (HSDSSP) STATEMENT OF CASH FLOWS FOR IDA 58460 AND TF A2598 Notes Total Total 2018 2017 Us $ US $ Cash flows operative activities Refund from Implementing Partner Cash paid to suppliers and employees 5 (5,234,929) (671,863) Net cash flows from operating activities (5,234,929) (671,863) Cash flows from investing activities Acquisition of equipment Net cash used in investing activities Cash flows from financing activities Cash flows from IDA 58460 and TF A2598 3 6,047,851 1,000,000 Other receipts Net cash flows from financing activities 6,047,851 1,000,000 Changes in working capital Receivables/advances (884,849) (381,821) Payables 33,317 20,257 Net changes in working capital (851,532) (361,564) Net increase in cash and cash equivalents (38,610) (33,427) Adjusted cash and equivalent at 1 January (32,359) - Effect of movements in exchange rate on cash and cash equivalents 81,043 1,068 Cash and cash equivalent at 31 December 10,074 (32,359) 11 Ministri of Heakh and Sanitation fleakth Service Deliverr and Slstem Supporr Project (1DSSP) Fhnancial Statements For he en'dCd 31 Df enxmber 2O/# NOTES TO THE FINANCIAL STATEMENTS 1 BACKGROUND INFORMATION OF THE PROJECT DESCRIPTION OF THE PROJECT The objectives of the Project are: (a) to increase the utilisation and improve the quality of essential maternal and child health services; and (b) in the event of an Eligible Crisis or Emergency, to provide immediate and effective response to said eligible Crisis or emergency. The Project consists of the following parts: Part A: Health Service Delivery: A.1 Community-Level Engagement 1. Carrying out a program of activities to strengthen and improve community engagement and access to basic health care and information, such activities to include: a) Training and routine supervision of community health workers: b) Providing financial and non-financial incentives to Eligible Community Health Workers; c) Developing appropriate tools for community monitoring of the delivery of essential, preventive and and curative health services; d) Training of community facilitators and carrying out of regular community consultations to receive feedback on availability and quality of service delivery; and e) Supporting DHMTS and MoHS to follow up on community health service delivery concerns. 2. Carrying out a program of activities to improve Public Health and Education, such activities to include: a) finalising the National Environmental Health policy and strategy; b) reviewing and updating the Public Health Legislation; c) dissemination of the environmental health policy and legislation; d) training of selected public health aids; e) providing identity cards, uniforms and personal protective equipment to public health aids; and f) carrying out of supervision and financing of operational expenses associated with inspection and enforcement of public health and sanitation regulations. A.2 Facility-Level Service Strengthening 1. Carrying out a program of activities to strengthen facility level delivery, such activities to include: a) providing essential drug, medical supplies and equipment to selected health facilities; and b) recruiting and deploying multi-disciptinary clinic teams to selected health facilities and supporting outreach work in Peripheral Health Units. 2. Carrying out a program of activities to support the establishment of emergency medical services and improve emergency medical services delivery, such activities to include: a) carrying out of initial and refresher training of selected drivers and paramedics; b) carrying out publicity on emergency medical services; and c) providing support for national coordination of emergency medical services. 12 iistry of Health and Saitton fleafh Ser vice DelherY and Srstem Support Project (ILJSDSSP) Financwal Slttmenl, Fo.r 'he year ended 3 Diecem hr 20/ NOTES TO THE FINANCIAL STATEMENTS Part B: Health System Support B.1 Health Human Resource Development 1. Carrying out a program of activities to strengthen health human resource development, such activities to include: a) supporting the development of the post graduate medical training program including hiring of teaching and administrative staff, acquisition of books and other instructional materials, acquisition of laboratory materials and equipment, and supporting the clinical residency training program including administering of entrance examinations, and providing support for continuing education and rotations in the sub-region. b) Providing stipends to Eligible Post-Graduate Students and Eligible Trainee Nurses; c) supporting the training of auxiliary health workers including developing curricula, acquisition of books, pedagogical and other instructional material, acquisition of laboratory materials and equipment, acquisition of dormitory and classroom materials, and hiring of teaching and administrative staff; and d) supporting continuing professional development programs for medical doctors, nurse and midwives, B.2 Sector Coordination and Management 1. Carrying out a program of activities to enhance sector coordination and management, such activities to to include: a) providing technical assistance and support for the operations of the directorates in MoHS, including supporting district planning and supervision, carrying out of monitoring and evaluation activities including development and installing a health management information system and publication of associa:ed bulletin, developing of sector strategies and carrying out of sector studies. b) building the capacity of and supporting District Health Management Teams (DHMTs) including training of DHMTs, providing support for the carrying out of regular review and monitoring of the state of health in the Districts, and supporting the surveillance of material deaths in health facilities and communities; and c) supporting the implementation of the Service Level Agreements (SLAs) Initiative including financing of staff in the SLA Management Unit, carrying out of routine supervision and consultations with Implement ng Partners and publication of quarterly updates. 8.3 Project Management Monitoring and Evaluation 1. Financing of Operation Costs associated with Project coordination and implementation. 2. Carrying out of monitoring and evaluation of the Project including carrying out of specialised surveys and collection and analysis of data. 3. Capacity building and training of staff involved in Project implementation, Part C: Contingency Emergency Response Providing immediate response to an Eligible Crisis or Emergency as needed. 13 Iinistr of fealth and Sanitation lealth Service DeliverY and S stem Sipport Project (IL DSSP) IlonaSul SJtIC as For the iec- cndcd 3) lk)cemr 211IN NOTES TO THE FINANCIAL STATEMENTS (Contd) 2 PRINCIPAL ACCOUNTING POLICIES The financial statements have been prepared in accordance with International Financial Reporting Standard (IFRS). The following accounting basis have been applied consistently in dealing with items which are considered material in relation to the project's financial statements. (a) Basis of Preparation The financial statement have been prepared under modified cash basis: meaning that income is only recognised when received and expenses recognised when paid for. There is therefore no recognition of accruals and prepayments. For this reason, the report only shows the cash inflows and outflows for the year sub divided into various categories. (b) Foreign Currencies Foreign currency transactions are accounted for the at the rate of exchange prevailing on the date at which the transaction was recorded. International Development association transactions are recorded at the rate ruling on the value date of the transaction. All foreign exchange difference have been reflected in the Income Statement. (c) Net exchange gains/losses Net exchange gains/losses comprises gain Less losses arising from the conversion of foreign monetary assets and liabilities and include all realised and unrealised fair value changes, interest and foreign exchange differences. 14 NOTES TO THE FINANCIAL STATEMENTS (Con td) 3 CASH RECEIPTS IDA 58460 TF A2598 Total IDA 58460 TF A2598 Total 2018 2018 2018 2017 2017 2017 us$ u5S US u U$ us$ uS$ IDA Withdrawal Applications 28 March 2017 - - - 500,000 500,000 24 July 2017 -- - 500,000 500,000 17 January 2018 1,000,000 - 1,000,000 - - 4 April 2018 488,677 - 488,677 25 April 2018 - 1,775,563 1,775,563 - - 17 July 2018 1.156,932 1,156,932 - . 31 October 2018 - 734,936 734,936 - - 31 October 2018 - 121,369 121,369 - 31 October 2018 - 138,728 138,728 - - 31 October2018 494,331 494,331 - 20 November 2018 - 137,315 137,315 - 1,488,677 4,559,174 6,047,851 500,000 500,000 1,000,000 Interest received . Refund from Implementing Partner - . 1,488,677 4,559,174 6,047,851 500,000 500,000 1,000,000 15-- -- - I/irrtr of Iiedth dSntton Heakh Ne-rice fereo an.d 0trem,, Srsppt Poje I (mSIJRWP) N" , if ..... Lidl ,,] jX "'& 20,D, NOTES TO THE FINANCIAL STATEMENTS (Contd) PAYMENTS IDA 58460 TF A2598 Total IDA 58460 TF A2598 Total 2018 2018 Z018 2017 2017 2017 Use of Funds by Component - H S5PS $ U 5 U $ US u us 5 us Wi - COMPONENT 1: HEALTH SERVICE DELIVERY Sub-component 1: Community - level engagement 223,973 685,930 909,903 127,882 127,882 Sub-component 2: Facility-leve[ service strengthen 724,819 2,219,809 2,944,628 4,690 4,690 Total - Component 1 948,792 2,905,739 3,854,531 127,882 4,690 132,572 W8 - COMPONENT 2: HEALTH SYSTEM SUPPORT Sub-component 1: Health IHuman Resource Development 199,195 610,047 809,242 5,729 295 6,024 Sub-component 2: Sector Coordination and Management 139,913 428,492 568,405 531,068 - 531,068 Sub-component 3: Project Management 677 2,074 2,751 2,199 2,199 Total - Component 2 339,785 1,040,613 1,380,398 538,996 295 539,291 12S8,577 3,946,352 5,234,929 666,878 4,985 671,863 16 ItinivtY yj Heati and Sanitaion lefilh Service Deliverr and SYsfet .vpprt Proj,r ({JSDSSP) Iuara/ Ct atena vr te lear 01ded 31 lDecember 201 NOTES TO THE FINANCIAL STATEMENTS (Contd) 5 CASH AND CASH EQUIVALENTS Total Total Total Total 2018 2018 2017 2017 Le US S Le US $ Bank balance - USD Account - 19,097 - 3,826 Bank balance - SLL Account (74,469,567) (9,023) (273,202,143) (36,186) (74,469,567) 10,074 (273,202,143) (32,360) 17 moiniseryfIknTh sa dSanriltrion Hetlah Sert vice Dhelrr ot Sytenttpport PNjee f(1]5)SLP) 1-ieuncul *Statemenait litM tie r'ar otded 3/I Dc-bvr 201 N NOTES TO THE FINANCIAL STATEMENTS (Contd) 6 DEFERRED INCOME Total Total 2018 2017 UsS US$ Resources: Bank balance brought forward 329,205 - Adjustment for prior year exchange difference . Withdrawal application 6,047,851 1,000,000 Interest earned Cash refund Total resources 6,377,056 1,000,000 Expenditure 1) Goods, works, consultant services, non-consulting services, training and operating costs under part 0% A.1(1) of the Project (except part A.l}(L.b) of the Project 909,664 17,759 2) Incentive payments for 0% Eligible Community Health - 20 - Workers under part A.1(1.b) of the Project 3) Goods, works, consultant services, non-consulting services, training and 0% operating costs under part A.1(2) of the Project 12,372 110,123 4) Goods, works, consultant services, non-consulting services, training and 0% Operating costs under part A. 1(2) of the Project 2,932,495 4,690 5) Goods, works, consultant services, non-consulting services, training and 0% operating costs under part A.2(2.a), (2.b) and (2.c) of the Project 6) Goods, works, consultant services, non-consulting services, training and 0% operating costs under Part B.1(1.a) and (I_d) of the Project 615,701 5,603 7) Stipends for Eligible Post Graduate Medicat Students and 100% Eligible Trainee Nurses under Part B-1(1.b) of the Project 8) Goods, works, consultant services, training and 1,7000,000 70% operating costs under Part B.1(1 c of the Project 193,541 421 9) Goods, works, non-consulting services, training and 0% operating costs under Part 8.2(1.a) of the Project 516,753 524,060 10) Goods, works, consultant services, training and 0% operating costs under part B.2(1.b) and (1.c) of the Project 51,652 7,008 11) Goods, works, consultant services, non-consulting services, training and 0% operating costs under part 8.3 of the Project . 2,751 2,200 Exchange (gain)/loss (81,043) '1,068' Balance c1f 5,153,886 670,796 Deferred income 1,223,170 329,204 18 tlhiisry of ilealth and uSaitation Health Service Delivery aul Si,stem Support Project (ISDSSP) IB D O hFinanciall Steatements F,or th e y ear ended 31 D)ecember 2 0/8 REPORT OF THE INDEPENDENT AUDITORS ON THE PROJECT'S DESIGNATED ACCOUNT STATEMENT - STANDARD CHARTERED BANK (SL) LIMITED ACCOUNT NUMBER: 87001020046601 AND 100102004601 Opinion in our opinion, the receipts are property accounted for and the withdrawals were made for the purpose of the project in accordance with the grant agreement. The designated account statement give a true and fair view of the ending balance for the period ended 31st December 2018. In accordance with the provisions of the terms of reference of this audit, we confirm as fol[ows: * Funds provided to the project have been used for their intended purposes. * The designated account of the project has been maintained in accordance with the provisions of the Grant Agreement and with the disbursement rules and procedures. Freetown 2019 Chartered Accountants 19 -L I0 network ofindepoo, ,i ar emow r9rms. rB[) is Ie Frand I; fortoe30 net,r zri f eaci, ie EB( mee FJ,rs Minishry of Health and Sanitation Heldth Service Deliverlp and System Support Project (IISDSSp) Financial Slatements Fo- the eIr ended 3I December 2018 DESIGNATED ACCOUNT STATEMENT Account No: 8700102004601 Depository Bank: Standard Chartered Bank (SL) Limited Address: Lightfoot Boston Street, Freetown Currency: US Dollars Account Activity Grant from International Development Association (IDA) 2018 2017 Balance at 1 January 3,826 IDA Designated Account Add: Funds transferred by IDA 1,488,677 499,980 Funds transferred by TF - 500,049 1,492,503 1,000,029 Less: Expenditure by category Bank charges 1,160 1,715 Transfer to Leones account 1,321,021 790,000 Payment of saLaries 36,000 7,560 Payment to suppLiers 124,248 196,928 Balance at 31 December 10,074 3,826 20 Ministry ofieaNhI and Samitation Health SerNce Defiiery and Ssten Support Project (IISDSSP) inancial .Satemewn Far the Joar endec 31 cnhcr 20/8 DESIGNATED ACCOUNT STATEMENT Account No: 100102004601 Depository Bank: Standard Chartered Bank (SL) Limited Address: Lightfoot Boston Street, Freetown Currency: Leones Account Activity 2018 2017 Balance at 1 January (273,202,143) - Inward funds transfer from USD Account 10/4/2017 Funds received from our US account - 1,862,500,000 7/7/2017 Funds received from our US account - 1,122,000,000 1/8/2017 Funds received from our US account - 2,256,000,000 4/10/2017 Funds received from our US account 528,500,000 1/1/2018 Funds received from our US account 2,695,000,000 - 2/1/2018 Funds received from our US account 397,500,000 3/28/2018 Funds received from our US account 4,560,000,000 5/8/2018 Funds received from our US account 2,280,000,000 6/28/2018 Funds received from our US account 113,700,000 - Reversal of salaries - 166,539,240 Reversal of bank charges - 793,500 9,772,997,857 5,936,332,740 Payment of Salaries (2,041,965,800) (1,302,645.546) Bank charges (12,125,748) (1,487,250) Payment to suppLiers (7,795,375,877) (4,905,402,087) Balance at 31 December (76,469,568) (273,202,143) 21