Auditeurs Associés en Afrique- KPMG RDC Société Anonyme avec Administrateur Général Téléphone : (243) 99 00 100 20 Bld du 30 juin N°14 : (243) 99 00 100 21 Imm BCDC 7ème niveau e-mail : tfashingabo@kpmg.cd Kinshasa/Gombe B.P. 7228 Kinshasa I République Démocratique du Congo International Rescue Committee, Inc, DRC program Independent Auditors’ Report for the project “Prevention and Mitigation of Sexual Gender Based Violence in North and South Kivu” Project funded by World Bank through International Bank Reconstruction and Development and International Development Association with project grant: TF018380 Period from December 8, 2014 to September 30, 2015 IRC 63, Av, Colonel Mondjiba Kinshasa/Ngaliema This report contains 10 pages 1 Auditeurs Associés en Afrique-KPMG RDC, Société Capital social 162.290.679,81F CDF Anonyme avec Administrateur Général d’audit et de Conseil N°RCCM: CD/KIN/RCCM/14-B-3559 membre du réseau KPMG constitué Id. Nat. : 01-83-N45135G de cabinets indépendants adhérents de KPMG Compte Fiscal N° A0700852K International Coopérative, une entité de droit suisse International Rescue Committee, Inc, DRC program Independent Auditors’ Report for the project “Prevention and Mitigation of Sexual Gender Based Violence in North and South Kivu” Project funded by World Bank through International Bank Reconstruction and Development and International Development Association. with project grant: TF018380 Period from December 8, 2014 to September 30, 2015 Summary Page 1. Independent auditor’s opinion 3 2. Statement of Income and Expenditure 5 3. Presentation of Organization 6 4. Additional notes to the financial statements 7 2 Auditeurs Associés en Afrique- KPMG RDC Société Anonyme avec Administrateur Général Téléphone : (243) 99 00 100 20 Bld du 30 juin N°14 : (243) 99 00 100 21 Imm BCDC 7ème niveau e-mail : tfashingabo@kpmg.cd Kinshasa/Gombe B.P. 7228 Kinshasa I République Démocratique du Congo International Rescue Committee 63, Av, Colonel Mondjiba Commune Ngaliema Kinshasa Democratic Republic of Congo To the attention of Jules IBONGA Opinion on the financial statements - Period from December 8, 2014 to September 30, 2015 Dear Sir, We have audited the accompanying financial statements of the project: “ Prevention and Mitigation of Sexual Gender Based Violence in North and South Kivu” funded by the Word Bank through IDA with project Grant: TF018380”, which comprise the statement of Income and Expenditure for the period from December 8, 2014 to September 30, 2015 and a summary of significant accounting policies and other explanatory notes. Management’s Responsibility for the Special Purpose Financial Information Management is responsible for the preparation and presentation of this special purpose financial information in accordance with the Grant contract and the directives of the organization. This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatements, whether due to fraud or error. Auditors’ Responsibility Our responsibility is to express an opinion on this special purpose financial information based on our audit. We conducted our audit in accordance with International Standards on Auditing. As requested, our audit procedures also included the additional procedures identified in your instructions. International Standards on Auditing require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the special purpose financial information is free from material misstatement. As requested by you, we planned and performed our audit using the materiality level specified in your instructions, which is different than the materiality level that we would have used had we been designing the audit to express an opinion on the financial information of the component alone. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the special purpose financial information. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the special purpose financial information, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and presentation of the special purpose financial information in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates, if any, made by management, as well as evaluating the overall presentation of the special purpose financial information. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. 3 Auditeurs Associés en Afrique-KPMG RDC, Société Capital social 162.290.679,81F CDF Anonyme avec Administrateur Général d’audit et de Conseil N°RCCM: CD/KIN/RCCM/14-B-3559 membre du réseau KPMG constitué Id. Nat. : 01-83-N45135G de cabinets indépendants adhérents de KPMG Compte Fiscal N° A0700852K International Coopérative, une entité de droit suisse International Rescue Committee, Inc, DRC program Independent Auditors’ Report for the project “Prevention and Mitigation of Sexual Gender Based Violence in North and South Kivu” Project funded by World Bank through International Bank Reconstruction and Development and International Development Association. with project grant: TF018380 Period from December 8, 2014 to September 30, 2015 Opinion In our opinion, the accompanying special purpose financial information for the period from December 8, 2014 to September 30, 2015 has been presented fairly, in all material respects, in accordance with the Grant contract and the directives of the organization. Restriction on Use and Distribution Without modifying our opinion, we draw your attention to note 3.2. to the financial statements, which describes the basis of accounting. As a result, the financial statement may not be suitable for another purpose. This report is intended solely for IRC and World Bank through International Bank Reconstruction and Development International Development Association and should not be used by or distributed to other parties. Jean Yves PARANT Senior Partner April 4, 2016 Kinshasa Democratic Republic of Congo 4 Auditeurs Associés en Afrique-KPMG RDC, Société Capital social 162.290.679,81F CDF Anonyme avec Administrateur Général d’audit et de Conseil N°RCCM: CD/KIN/RCCM/14-B-3559 membre du réseau KPMG constitué Id. Nat. : 01-83-N45135G de cabinets indépendants adhérents de KPMG Compte Fiscal N° A0700852K International Coopérative, une entité de droit suisse Financial statements of NGO IRC Period from December 8, 2014 to September 30, 2015 (Expressed in USD) 2. Statement of Income and Expenditure Description Notes Budget USD Actual USD Variance YEAR 1 Prevention 4.1. 1 387 274 256 613 1 130 661 Access to Provision of services 4.2 1 536 307 378 532 1 157 775 Local ownership on addressing SGBV 4.3. 500 087 262 764 237 323 Project management 4.4. 246 786 58 906 187 880 Total Project Expenditures 3 670 455 956 816 2 713 639 Indirect Cost Recovery 10% 4.5. 329 545 95 682 233 864 Total Project expenditure + Indirect Cost 4 000 000 1 052 498 2 947 503 Recovery Income 4.6. 1 575 796 Balance USD 4.7. 523 298 The accompanying notes to the statement of Income and Expenditure are an integral part of these financial statements. 5 Financial statements of NGO IRC Period from December 8, 2014 to September 30, 2015 (Expressed in USD) 3. PRESENTATION OF INTERNATIONAL RESCUE COMMETTEE AND ACCOUNTING POLICIES 3.1. Presentation of the Organization The International Rescue Committee, Inc. (IRC) is a private, not-for-profit organization founded in 1933 and responds to the world’s worst humanitarian crises and helps people to survive and rebuild their lives. At work in over 40 countries and 25 U.S. cities to restore safety, dignity and hope, the IRC leads the way from harm to home. This commitment is expressed in emergency relief, protection of human rights and post conflict development, resettlement assistance, and advocacy. IRC is among the largest providers of humanitarian aid in the Democratic Republic of Congo (DRC) and works to save lives revive communities and strengthen local capacity for recovery. IRC’s programs in DRC are categorized into five core areas, namely emergency responses, community development, health, gender based violence and education. 3.2. Presentation of the Project The project « Prevention and Mitigation of Sexual Gender Based Violence in North and South Kivu» concerns the services improvement of prevention and Mitigation of Sexual Gender Based Violence in North and South Kivu. This project contains the below sections: Prevention: This component includes prevention and awareness-raising activities through economic empowerment of women in the community (savings and loans associations, business skills training, group discussions including female members and their spouses on household decisions through the Economic And Social Empowerment - EASE - program in South Kivu), community education (including sessions conducted by male leaders in the community to encourage behavioral change among their peers, and piloting of the Engaging Men through Accountable Practice (EMAP) approach, and support to CBOs (economic empowerment, training for SGBV referral). - Access to Provision of services: This component focuses on access to basic services for survivors, including medical, psychological, and legal services, with a specific emphasis on piloting new initiatives to respond to the specific needs of children and men. Legal support will be provided through local NGOs that will receive capacity building support, including training on management, legal aspects, and modalities of sensitive interactions with SGBV survivors. To ensure the provision of services in emergency situations, the project would also fund an emergency team, designed to quickly deploy and provide a rapid assessment and response after an attack. - Local ownership on addressing SGBV: Local ownership in the management of GBV - component implemented by Health Focus. - Project management: This component ensures appropriate and adequate management, as well as coaching the team and activities by senior managers within the IRC in Kinshasa, as in the provincial project management. 6 Financial statements of NGO IRC Period from December 8, 2014 to September 30, 2015 (Expressed in USD) 3.3. Significant accounting policies The main accounting policies relevant to the special purpose financial statements are as follows: a) Basis of preparation The special purpose financial statements have been prepared under the historical cost convention. b) Income Grant income is recognized when received. c) Expenditure Expenditure is recognized on a cash basis. Expenditures are detailed as per the approved budget as a part of the grant support agreement. d) Fixed assets Fixed assets procured using program funds are expensed in full on purchase. It doesn’t result in creation of annual depreciation and amortization. 7 Financial statements of NGO IRC Period from December 8, 2014 to September 30, 2015 (Expressed in USD) 4. ADDITIONAL NOTES WITH THE FINANCIAL STATEMENTS 4.1. Prevention Description Amount USD Personnel Costs 143 553 Travel & Transport 60 379 Equipment 12 192 Goods 4 197 Trainings 28 893 Other 7 400 Total 256 613 This section records the expenses related to the staff’s Prevention Personal Costs and Travels & transport. 4.2. Access to Provision of services Description Amount USD Personnel Costs 126 705 Travel & Transport 37 480 Consulting 0 Goods 77 703 Trainings 73 596 Other 63 048 Total 378 532 This section records the expenses for the staff’s Access to Provision of services Personal Costs and Travels & transport, services, trainings and others. 4.3. Local ownership on addressing SGBV Description Amount USD Personnel Costs 18 272 Travel & Transport 456 Equipment 0 Goods 1 953 Trainings 2 030 Other 240 053 Total 262 764 This heading expenditure for salaries and employee benefits of the project, Personal Costs and Travels & transport, services, trainings and others. . 8 Financial statements of NGO IRC Period from December 8, 2014 to September 30, 2015 (Expressed in USD) 4.4. Project management Description Amount USD Personnel Costs 41 591 Travel & Transport 2 240 Goods 2 722 Other 12 353 Total 58 906 This heading expenditure for salaries and employee benefits of the project, Personal Costs and Travels & transport, services, trainings and others. 4.5. Indirect Cost Recovery Description Amount (USD) Indirect Cost Recovery 95 682 Total 95 682 This is indirect cost charge at 10% of the total project direct costs less sub grant. 4.6. Income IRC received the income from World Bank through International Bank Reconstruction and Development International Development Association according the schedule as below: Dates Bank Amounts USD 17/03/2015 City Bank 1 000000 17/08/2015 City Bank 66 959 26/08/2015 City Bank 508 837 Total 1 575 796 4.7. Cash Balance Items Amount Transfer from the donor WORD BANK 1 575 796 Total resource (1) 1 575 796 Total expenditures (2) 1 052 496 Balance (3) = (1) - (2) 523 298 9 Financial statements of NGO IRC Period from December 8, 2014 to September 30, 2015 (Expressed in USD) 4.8. Asset 10