Crs
I ORLD BAN GROUP
NBD-CIWA/WB, Grant No. TF015834
Engaging Civil Society for Social and Climate Resilience in the Nile Basin
Project (ECSSCRNBP)
Implemented by:
THE NILE BASIN DISCOURSE
REPORTS AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
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TABLE OF CONTENTS
Contents                                                                        Page
ACRONYNMS/ ABBREVIATIONS...
1.0  BACKGROUND INFORMATION
2.0   M ANAGEM    ENT  INFORM   ATION...................................................................................2
3.0  PERFOMANCE HIGHLIGHTS- MANAGEMENT REPORT....................................3
4.0  MANAGEMENT ASSERTIONS 2018              .................................................................. 11
5.0  AUDIT METHODOLOGY AND PROCEDURES ......................................................... 12
6.0  AUDITOR'S REPORT ON MANAGEMENT COMPLIANCE.................................. I
7.0  INDEPENDENT AUDITOR'S REPORT 2018 ............................................................... 6
8.0  INDEPENDENT AUDITOR'S REPORT ON THE SPECIAL ACCOUNT
O PERATIONS    .................................................ATINS.......... ...  I......  9
9.0  STATEMENT OF RECEIPTS AND PAYMENTS 2018...............................................20
10.0 STATEMENT OF FUND BALANCES 20181..................................................................21
11.0 NBD CIWA/WB GRANT NO. TF015834 SPECIAL ACCOUNT RECONCILIATION
STATEMENT AS AT 31 DECEMBER 2C0E1E8 ................R20................................................. 22
12.0 SIGNIFICANT ACCOUNTINGPOLICIES .................................................................. 23
13.0 NOTES TO THE FINANCIAL STATEMENTS ........................................................... 25
Appendices
> Statement of Expenditures (SoEs)
> Management Letter


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ACRONYMS/ ABBREVIATIONS
AF                  Additional Financing
APO                 Annual Plan of Operation
AusAID              Australian Aid
AWDF                African Women Development Fund
BAS                 Baro-Akobo-Sobat
CIWA                Cooperation in International Waters in Africa
CSOs                Civil Society Organisations
CPA                 Certified Public Accountant
CRM                 Climate Risk Management
EC                  Executive Committee
ECSSCRNBP           Engaging Civil Society in Social and Climate Resilience in the Nile Basin
Project
ENTRO               Eastern Nile Technical Regional Office
ENSAP               Eastern Nile Subsidiary Action Programs
ESIA                Environmental and Social Impact Assessment
GA                  General Assembly
GAAP                Generally Acceptable Accounting Principles
GERD                Grand Ethiopian Renaissance Dam
GWP-EA              Global Water Partnership Eastern Africa
IDA                 International Development Agency
IDRC                International Development Research Centre
IGAD                Inter-Governmental Authority on Development
IFRs                Interim Financial Reports
ISA                 International Standards on Auditing
IPSAS               International Public Sector Accounting Standards
JSA                 Jasper Semu & Associates
KAM                 Key Audit Matters
LDFs                Local Discourse Forums
MoU                 Memorandum of Understanding
NBD                 Nile Basin Discourse
NBDS                Nile Basin Discourse Summit
NBRSs               Nile Basin Riparian States
NDF                 Nile Discourse Forums
NELCU               Nile Equatorial Lakes Coordination Unit
NELSAP              Nile Equatorial Lakes Subsidiary Action Program
NTSEs               National Technical Support Experts
PESTLE              Political, Economic, Social, Technological, Legal and Environmental
RAP                 Resettlement Action Plan
RECs                Regional Economic Communities
SoE                 Statement of Expenditure
SWOT                Strengths, Weaknesses, Opportunities and Threats
TTL                 Task Team Leader
USS                 United States Dollars
WB                  World Bank
WWCC                Women and Water in Communities for Change


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1.0       BACKGROUND INFORMATION
Introduction
The Nile Basin Discourse (NBD) or 'the Organization' is a regional Network of networks of Civil
Society Organizations (CSOs) in the Nile Riparian countries that was established in 2003. It is
registered in Uganda with the Secretariat at Entebbe, Uganda. NBD promotes dialogue on
sustainable equitable development and cooperation, peace, and mutual understanding on issues of
the Nile, providing and facilitating exchange of information on development and cooperation
activities and supporting research on issues for evidence base, that promote integrated water
resources development, environmental, gender and pro-poor development agendas. The
organization operates regionally and country-wide in each and every Nile Riparian state.
Membership comprises of the National Discourse Forums (NDFs) in the eleven (II) Nile
Riparian States, namely Burundi, D.R. Congo, Egypt, Eritrea, Ethiopia, Kenya, Rwanda, South
Sudan, Sudan, Tanzania and Uganda. Currently, ten (10) countries are active with the exception
of Eritrea. NBD's extensive grassroots presence in the riparian communities makes it uniquely
placed to link regional and local perspectives. The unique engagement has enabled contribution
towards equitable and sustainable climate resilience growth in the region since the project cycle
commencement date in 2013 up to the l" project cycle that ended in 2016. Based on the good
performance of the 1" cycle, NBD received an opportunity for Additional Funding (AF) for the
period of 2017 -2019.
Basically, the NDFs working through the National Technical Support Experts (NTSEs) and their
Local Discourse Forums (LDFs) and CSOs' members, understand national issues and provide the
NBD Network with the skills and support to enhance discourse on practical and sustainable
policies, projects and programs that meet the real needs of the communities. The organization
operates regionally and internationally to contribute towards change in policies and practices and
ensures that issues of Nile cooperation and development are brought to the fore and are pivotal in
reducing poverty in the countries. NBD seeks to engage and discourse on development processes
in the Nile region with a primary focus on the development agendas of governments and
development partners such as the Governments and the Inter- Governmental structures. The
organization communicates through two pipelines. a vertical pipeline encompassing top-down
and bottom-up advocacy flow, connecting the policy arm to the grassroots communities; and a
horizontal pipeline connecting countries on trans-boundary agendas.
The NBD Vision
The NBD envisions "A Nile Basin in which there is sustainable and economic developmentfor all
people of the Nile Basin, free of conflict, leading to achievement of Justice, human rights, good
governance, poverty reduction and prolection ofthe environment".
The NBD Mission
Its mission therefore is "To ensure that a fully informed and basin-wide civil society develops and
plays a key role in achieving the vision, through pro-active and critical influencing ofprojects,
programs and policies of the Nile Basin Initiative and other development processes


..l   N1ANAG ENMIE'T INFORATI (1
2.1         nipal place of business
Plot 32. Nsanizi Road
P. 0. Box 185
F:ntebbe, [Ugand a,
2.2    NBD Secretariat Personnel involved in the project
Dr. Helen Nati            -      Regional Manager
1 ferbert Wairugala       -      Regional Finance and Admnistanton >lter
Ayenew 'cssera          -      Regional Monitorinng and ivaluan on 01'j]ker
Jennifer Kurubeija        -     Regional Program Administrator
Fidele Nivigaba           -      Regional Communcation and Medlu Ofbcer
Mathilas Nvanzi           -      Regional ICT and Social Media Oiflicer
2.3    Bankers
Stanbic Bank Uganda Limiied
E-ntebbe Branch
P.O. Box 713]
Kampala - Uganda
2.4    Auditors
Ilhe auditors commissioned by The Nile Basin Discourse to audit the CIWA-W-B
l;ngaging CiVil Society in Social and Climate Resilience in the Nile Basin Project
(IISCRNBP) for the period ended 31 December 2018 in accordance with the terns of
ref'erence set out in the service contract are:
Jasper-Semnu & Associates
Certified Public Accountants
7I Vloor. Conrad Plaza
Plot 22, Entebbe Road
Postal Address: P. 0. Box 8294
E-miail: j >ixr t lhhnl. L
Tel: '256 414 23 1577/236206
1256 393 262632
Kampala
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3.0     PERFOMANCE HIGHLIGHTS - MANAGEMENT REPORT
I iplenentation of the APO 2018 and Outputs
NBD, throughout the accounting year, Focused on implementing activities towards its three milestones that
are stipulated under the Cooperation in International Waters in Africa (CIWA) Grant TF015834, (AF) The
title of the Project is "Engaging Civil Society for Social and Climate Resilience in the Nile Basin'. This is a
project running from February 2013 to December 2016 with Additional Funding (AF) to implement
activities from January 2017 to December 2019.
Project management is mainly by the NBD Secretariat with supervision and guidance from the 13 member
NBD Board (10 Board members + 3 co-opted women representation per cluster whereby the 10 NBRS are
in 3 clusters namely: Cluster I (Cl): Egypt, Ethiopia, South Sudan and Sudan; Cluster 2 (C2): Kenya,
Tanzania and Uganda; and Cluster 3 (C3): Burundi, D.R. Congo, and Rwanda. The NBD Secretariat also
receives closer supervision from the 4-member Executive Committee (EC) consisting of the Board
Chairperson, Vice Chairperson, Treasurer and Secretary General. They hold meetings aimed at giving
guidance to the Secretariat and the entire NBD fraternity at large. The Secretariat also benefits fi-m
supervision missions and guidance by the CIWAAVB team led by the Project's Task Team Leader (TTL),
to discuss on the general progress and performance of activities and programmatically guide on the
strategic direction and engagement as stipulated in the Project Appraisal Document (PAD).
COMPONENT 1: Strengthening the NBD Secretariat
PLANNED
In 2018, the NBD Network was focused on enhancing capacity of the Secretariat with activities that
included: (i) finalizing NBD Network Strategy 2018-2022, (ii) mobilizing additional resources to ensure
NBD Network's financial sustainability, (iii) implementing NBD Network's strategies namely: the
Communications, Advocacy and Outreach; Monitoring and Evaluation; and Financial Sustainability,
OUTPUTS
Output 1.1     NBD Strategy 2018-2022 developed and operational
Status: Output achieved
The Nile Basin Discourse launched its strategy (2018-2022) development process ii February 2017 back to
back with the I1' Regional Nile Day celebrations in Dar Es Salaam-Tanzania. An external consultant was
hired to facilitate the strategy development process and to prepare a write-up of the content in collaboration
with the secretariat. The draft strategy 2018-2022 was presented to the NBD Board, the NBD General
Assembly (GA), and the NBDS for strategic feedback. It was finally approved at the NBD GA of
November 2017 with the minor adjustments (feedback) as stated in the November 2017 GA minutes. The
final strategy, incorporating feedback obtained, was submitted to the NBD Secretariat in August 2018. The
strategy was pivotal in the resource mobilization efforts which led NBD into being one of the co-partners
with IHE-DelIt's seed funding by Coca Cola Foundation.
Output 1.2: Additional Resources Mobilized
Status: output achievement is a continuing process
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During the planned year, resources mobilization efforts were made to various development partner
agencies. The Following events unfolded:
Partnership with IILE-DELFT: NBD became one of the co-partners with HE-Delft which practically
expressed interest to co-partner with the NBD Network. Under the proect titled, "Women and Water in
Communities for Change project 106565", a grant as Sced Funding (SF) from the Coca-Cola Foundation,
was received to implement activities running for a 20-months period with effect from September 2017 --
August 2019.
The two organizations identified areas of common interest and agreed upon various responsibilities. NBD
and IHE-Delft agreed to collaboratively implement activities in two Nile Basin countries oF Tanzania and
Uganda. In 2018, NBD concurrently implemented the activitics in the two countries by combining with the
already planned capacity building workshops on empowering women and youths under the CIWA/WB.
This gave a platform for selected IHE-DeIft project beneficiaries from Mabamba Bay Wetlands of Uganda
and from Mara Wetlands of Tanzania to participate in the related capacity building activities in Entebbe -
Uganda and Mwanza - Tanzania respectively.
Output 1.3.: NBD Strategies Implemented
Status: output achieved
Communications. Advocacy and Outreach Strategy: This strategy was drafted, approved and is engaged as
a dynamic tool during the implementation process. Promotional materials were printed and distributed, E-
Newsletter of Nile Voices issued and shared, user generated contents gathered from NDFs and were e-
published and webinars conducted.
Monitoring and Evaluation Strategy: This strategy was also drafted, approved and is engaged as a dynamic
tool during the implementation process. The existing online M&E system was developed and is fully
functional with indicators, goals, outcomes, output and input levels developed and entered into the system;
comprehensive data collecting and reporting templates were also developed and inbuilt into the system;
user IDs for accessing and using the system were provided to those that qualified; the NTSEs were guided
on how to use the system; data for monitoring progress on NBD's program performance collected, analyzed
and interpreted with the help of the system.
COMPONENT 2: Improved Communication and Outreach
PLANNED
For the second milestone in 2018, the NBD Network focused on improving communication and outreach
with the following activities. (i) facilitated face-to-face stakeholder engagement in investment programs for
the Lakes Edward and Albert Fisheries (LEAF 11) project; (ii) leveraged NBD's website through user
generated contents from mainly eight of the ten national chapters; (iii) enhanced participation in
partnerships with regional/national organizations most notably the annual regional Nile Day Celebrations
2018; and (iv) facilitated virtual stakeholder engagement in investment programs through webinars.
OUTPUTS
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Output 2.1: Stakeholder engagement in investment programs (face-to-face)
2.1.1. Trans-boundary stakeholder engagement for Lakes Edward and Albert Fisheries (LEAF II) project
facilitated:
Status: output achieved
Trans-boundary communities' engagement for the Lakes Edward and Albert Integrated Fisheries and Water
Resources Management (LEAF-il) project was organized on the 7"' day of December 2018 by N3D in
collaboration with the Uganda - NDF and the D. R. Congo - NDF. The engagement platform took place in
Mpondwe, Bwera - Republic of Uganda, a border town with the Democratic Republic of Congo.
Participants were drawn from the local communities of the Lakes' basin of Uganda and D.R. Congo,
district political leaders and local governments representatives from both countries, the security personnel
from Uganda, management and staff from both NDFs and the NBD Secretariat, representatives from
NELCU of the NBf, together with LEAP T] project coordinators from both countries.
The platform created awareness and an opportunity for the project beneficiaries and stakeholders to learn
about the project's trans-boundary benefits, successes, and challenges faced during its implementation. It
also created an opportunity for the stakeholders to beware of the broader scope of coverage of LEAF II as
compared to LEAF . The intense discussions, which followed presentations, further enriched communities'
understanding of insights related to the project and its benefits to them while demonstrating ownership,
expected roles and contributions to the success of the project. For purposes of monitoring the results of the
platform, an agreed declaration was made and disseminated. This declaration highlighted the way forward
in which strengths were emphasized, limitations identified and actions to be taken thereafter to improve the
project implementation would clearly be stipulated. The declaration was published in the NBD's website,
w-ww.nilebasindiscourse.org
Emerging issue(s):
The implementation of LEAF 11 project activities on the D.R. Congo side was behind schedule in
comparison to Uganda's side, hence creating the need to expeditiously engage the relevant stakeholders
into approved activities so as to achieve the intended objectives of the project.
2.1.2. Trans-boundary stakeholder engagement for Baro-Akobo-Sobat sub-basin facilitated:
Status: output achieved
The Trans-boundary stakeholders' consultation platform on the Baro-Akobo-Sobat (BAS) Multi-Purpose
Water Resources Development and Management Project was organized on the 20' day of December 2018
by NBD in collaboration with both the Ethiopia - NDF and South Sudan - NDF. The platform took place in
Addis Ababa, Ethiopia. A total of 27 participants (11% of which were women) representing local
communities from the BAS sub-basin in South Sudan and Ethiopia, government representatives from both
countries, representatives of the NDFs from both countries, the NBD Secretariat, and representatives of the
Eastern Nile Technical Regional Office (ENTRO) of the NBI participated.
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The objective was (o facilitate a trans-boundary platform ofengagement in investment programs for sharing
experiences; learning and understanding the stakes and responsibilities in the BAS project: open an
opportunity for the project's beneficiaries and stakeholders to learn about the project's benefits, successes-
to-date, challenges, and future prospects; provide a platform for the stakeholders to discuss the follow-up
on BAS feasibility studies, the stakes involved, various responsibilities and expectations in the identified
short, medium, and long-term projects.
Efforts were made to create much needed awareness at the platform on a number of critical areas which
include but not limited to: hydropower potentials of the BAS basin; the BAS project's design and status:
the BAS multipurpose water resource development feasibility study; the communities' engagements on the
BAS project; and the appropriate stakeholder engagement modalities in development interventions in trans-
boundary waters. This intervention yielded a declaration which was drafted and signed as the way forward
aimed at identifying key indices that will be able to monitor the success of the project. This declaration
critically identified strengths to uphold, limitations to address, expected roles and contributions of each
stakeholder and actions to be taken before project implementation.
Emerging Issue(s)
It was noted that the BAS transboundary projiect has generally registered tremendous progress on Ethiopia's
side in comparison to South Sudan's.
OUTPUT 2.2: Participation in and partnerships with regional/national organizations enhanced:
2.2.1. Regional Nile Day Celebrations, 2018
Status: output achieved
The Nile Day celebration is an annual event organized by NBI with NBD as a very key partner in the
celebrations. The importance of NBD in these celebrations always highlights civil society engagements in
all the investments administered by NBl. It's also important to note that such celebrations provide a
platform for NBD's publicity and voice recognition amongst the high level dignitaries invited for the
celebrations.
The NBD joined the NBI and the rest of the Nile riparian states for the 121h Regional Nile Day celebrations
that took place on the 22nd February 2018 in Addis Ababa, Ethiopia. NBD participated in the event from
preparation to execution of the celebrations. NBD collaborated with NBI and the Ministry of Water,
Irrigation and Electricity of the host country in die preparation of the annual event The Ethiopian -NDF
was part of the National Organizing Committee (NOC) in Ethiopia, while the NBD Secretariat worked as a
member of the Regional Organizing Committee (ROC).
The regional Nile Day celebrations 2018 attracted high level dignitaries such as Ministers in charge of
Water Affairs in the Nile Basin countries, Permanent Secretaries, Civil Society Organizations (CSOs),
members of Diplomatic Community, the Executive Secretary of the United Nations Economic Commission
for Africa (UNECA), Development Partners, Researchers, Academia, Youths, international and national
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media houses, and students from selected urban schools. The theme of this year's event was "The Nile:
Shared River, Collective Actions,"
The annual Nile Day event, therefore, offered NBD the platform to advocate for the benefits of basin-wide
cooperation in mutual conservation of equitable and reasonable utilization of the shared Nile Basin waters
and related resources. NBD was represented by members of the NBD Executive Board, N1D board
member for Ethiopia, member civil society organizations of Ethiopia National Discourse Forum. and the
NBD Secretariat Staff.
While representing the NBD Board Chairperson, the NBD Secretary General, Mr. Donald KASONGI in his
statement reiterated the readiness of the NBD Network to continue working closely with the inter-
governmental organizations onl the Nile and governments of the Nile Basin to foster cooperation and
development and support initiatives that lead to enhanced optimal and collective sharing of the resources of
the Nile.
The Secretary General drew attention to the I" Nile Basin Discourse Summit (NBDS) held in 2017, whose
theme was "Integration and Inclusion: New Ideas for collaboration in River Basins Management Policies
and Practices" and with sub-themes that opened dialogue on enhancement of the all-level, all-inclusive,
hands-on, trans-boundary cooperation, collaborative assessment of solutions, experiences and practices;
together with tracking of actions towards the transformative agenda 2030 Sustainable Development Goals
(SDGs) in shared water resources. The theme for the summit was already in line with the theme of the Nile
day 2018, especially on the issue of inclusivity that showed value addition by civil society in investments
conducted by NBl.
OUTPUT 2.3: Stakeholder Engagement in Investment Programs facilitated (virtual)
2.3.2. User generated contents for member engagement increased - One from each country per month:
Status: output achieved 80%
During the planned year, 97 out of the planned 120 User Generated Contents (UGCs) were submitted to the
NBD Secretariat by each country's NTSEs save for Ethiopia NDF and South Sudan NDF. The submissions
represent 80% progress of the targeted 100% user-generated contents from all the NDFs. The issues and
contents of submissions covered several topics that included, but not limited to: resilience to climate change
including protection of the environment through tree planting, disaster prevention, incorne generating
activities for local communities to improve livelihoods, women's rights, engagement of youths in waste
management, challenges and opportunities of water hyacinth on the Nile waters, trans-boundary lakes
management in the basin, prevention of water pollution, climate change impacts and mitigation/adaptation
measures, food and nutrition security. The UGCs were reviewed for quality assurance and e-published on
the community blog of the NBD website for knowledge and experience sharing among tle Network
members and partners. See www.nilchasindiscourse.crg
2.3.3. Communiquds posted and shared 3/year:
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Status: output 2/3 achieved
During the year, N BD planned to issue at least 3 communiquds to be posted on the web and accessed by the
wider stakeholders for knowledge and information dissemination for facilitating stakeholder engagement in
investment programs. The communiquds were to be issued after the end of stakeholder consultations on the
LEAF IL. the BAS, and the Grand Ethiopian Renaissance Dam (GERD) projects. While the planned trans-
boundary stakeholder consultation for the GERD was postponed for 2019, cominuniqu6s were issued and
c-published following the trans-boundary stakeholders' consultations platforms on the LEAF 1l and the
BAS projects held on the 7' and 20 '' December 2018, respectively. The NBD Network achieved two out of
the planned three.
2.3.4. Conducting Social media campaigns - 2/year
Status: achieved 50% and continues to 2019
NBD planned to carry out two social media campaigns (SMC) during the year but was only able to conduct
one SMC that took 16 days of activism under the theme 61Strengthening Women Participation in Water
Decision Making in the Nife Basin". Members, partners and friends of the Nile participated in the campaign
through online tweets. The NBD social media campaign used the hash-tag, #One Nile-One Family# and
attracted at least 653,618 tweets. About 1200 individuals directly tweeted, increasing the total number of
NBD's   followers/contributors  to  2,289,425  @nilebasin.  This  is  further  evidenced  at
nbd(ainilebasindiscourse.org
COMPONENT 3: Capacity building for NBD members:
Output 3.1. NBD members' capacity enhanced (face-to-face trainings):
3.1.1. Country level capacity building trainings conducted:
Status: achieved 90% (9 out of 10 countries) of the target.
Climate change, in particular, affects all people across the Nile Basin but also the entire world as a whole.
However, poor communities will be more acutely affected by climate change than developed communities,
partly due to their limited access to information and Financial resources, as well as their increased
dependence on natural resources. Gender also played a critical role regarding individual vulnerability, with
women typically more likely to be negatively affected by the impacts of climate change and access to both
power and resources than men. Women, men, girls and boys are therefore differently affected by disaster
and climate impacts and, therefore, find different methods of coping with both of them.
In 2018, the NBD Network facilitated capacity building on gender equality, empowerment of women and
young people as climate resilience champions in the Nile basin. The objective was to build the capacity of
women and youth as climate change resilience champions through enhancement of their skills towards
creating green jobs. In order to guide the capacity building activity, NBD has a pool of in-country climate
change experts already procured under NBD-CIWA/WB phase 1 of the project. In addition to the capacity
building activity conducted by the experts, the participating women and youths entrepreneurs shared their
experiences which included, but by no means, not limited to: What they do? I-low they started climate smart


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businesses? I low they manage their businesses, and what challenges they face? And how they deal with
such challenges faced?
In the case of two countries, thus Tanzania and Uganda, the NED Network in co-partnership with IlE-
Delft, implemented a Coca Cola seed funded project titled: "Women and Water in Communities for
Change". In this co-partnership arrangement, IFIE-Delft brought in 1l participants for Uganda f,rn
Mabamba Bay Wetlands, and 10 participants for Tanzania from Mara Wetlands.
Out of a total 533 participants that benefited from the capacity building, 289 (54%) were female, and 244
(46%) were male. Furthermore, out of the 533 participants, a sizeable number of 252 (47%) were youths
and 281 (53%) were adults.
3.1.2. Links with the Country Entry-Points for NDF National Technical Support maintained:
Status: achieved and continues to 2019
NBD was able to maintain links with the National Technical Support Experts (NTSEs) for all the 10 N DFs.
Except for the NTSE in Ethiopia and South Sudan, all the rest of the NTSEs spearheaded the preparation
and organization of the in-country capacity building training workshops; wrote workshop reports;
facilitated the increase in monthly in-country user generated contents and engagements; encouraged (and
some recruited) potential CSOs to join the NBD network; and contributed to data and information/evidence
collection for NBD's web-based M&E system.
Emerging Issue: In country contextual challenges faced especially for Ethiopia and South Sudan.
Output 3.2: NBD's member capacity enhanced (virtual dialogue)
NBD prepared a training video on "Introduction to Funding and Donor Trends" to build the capacities of
its members on resources mobilization. A PowerPoint presentation and a video footage were prepared and
posted on the YouTube for wider accessibility. The video was organized in such a way that all-level
stakeholders accessing it would be able to understand basic terms and steps related to fundraising, a
typical funding agency's funding cycle, broad trends in NGO project funding, and where and how to
identify funding opportunities. Three major topics were covered by the training video footage, entailing
(1) Types of Funding such as: (a) Grants (bi-lateral, institutional donors, foundations, & private sector);
(b) Tenders (donors, foundations & private sector), and (c) Investments (private sector, high net worth
individuals, and other NGOs). The advantages and disadvantages of each type were elaborated (2) Typical
donor funding cycle (identification, preparation, appraisal, negotiation & approval, implementation &
supervision, and evaluation). Detailed actions for each cycle were elaborated. (3) Donor trends as one of
the challenges in fund raising. The trainees were advised to design adaptive fundraising strategies,
bearing in mind, the changing donor trends today. See www.nilebasindiscoursc.or
SUMMARY
The NED Network incredibly achieved fully on all the activities for each component planned to be
completed in 2018 even with the meager resources, but partially to the activities that were deemed
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continuous. The organization also put concerted effort at resource mobilization by initiating concept notes
that it put in the pipe line, with the understanding that the success of which was to lead towards
organizational sustainability and achievement of its mandate. The NBD was able to sign an agreement as a
co-partner with IH-E-Delft on a Coca Cola foundation seed funding. The NBD Network made efforts to
retain (through good performance with tangible results) its key funding partner the CIWA/WB. It also made
efforts to retain the implementing partnerships, such as the governments of the Nile Basin countries and the
centers of the inter-governmental organizations on the Nile water resources (through provision of the
independent voice to the cooperation and development agendas on the Nile water resources), by focusing
on its mandate as stipulated in the 5-year Strategy 2018 - 2022 "Inclusive Aquawareness and
Empowerment", strategic directions.
The organization has also agreed on cost-effective value for money strategies for implementation of
activities, such as undertaking two or more activities for the same monetary unit spent, and leveraging on
co-partnerships (for example the leverage on the CIWA/WB and contract-partner arrangements, such as the
co-partnership with [HE-Delft under the Coca Cola Foundation. Most of all, the NBD Network is closely
following through the strategic directions as stipulated under the NBD Strategy 2018 - 2022, that has been
put in place under the NBD-CIWA/WB Project AF 2017 - 2019 "Engaging Civil Society for Social and
Clinae Resilience in the Nile Basin
Chairp  on, Board of Directors
The Nile Basin Discourse
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.      1 AGFMENT ASSERTIONS ON THE FINANCiAL STATEMENTY FOR T F
PERIOD ENDE! DECMBER 31, 2018
Sfils section presents Nile Hasin Discourse management 's coifirmation of its responsibilIt lor
intir tialton ii the finaicial statements and information provided during thie course of be audIt.
NBD1) management is required to prepare financial Statements that give a [rue and fair viewk of tbc
state of affairs of the Project and o its operational results that comply with bhe funding oudelines
under the grait agreement. Management is responsible for keeping proper accotntring ecords th
diseose, with reasonable accuracy, the financial position of the Project. Managemet is also
responsible for safeguami-ling the assets of the Project.
Management accepts responsibility flö the annual financial statements, which have been prepared
mtig appropriate accountin,g policies supported by reasonable and pruderl judgmnts and
estimlates in conformity with Ilie Generally Accepted Accouniting Principles and te World Bank
guideines_ Management is of the opinon that the financial statements för the period ended
ecember 3 1. 2018 gives a truC and fair view of the state of affairs of' the Projecr: and of its
operations. Management furtlier accepts responsibility for te maintenance ofl accountinig records
tLIal may be relied upon in Ilie preparation of financial stalenents, as weil as adequaie svstems of
m ternal controls.
These assertions are certified by mianagement of NBD on            ... and Siened
on its behalf by:
Chairman, Board of Directors                  Regional Manager
The Nile Basin Discourse                      The Nile Basin Discourse
IlI


NRIJ-rl'4 H  Cran , Vo IP0/I3i
for t prnd oltn d 31 I\  ed ber 201.1
5.0    AUDIT METHODOLOGY AND PROCEDURES
5.1    Audit objective
The objective of the audit of the financial statements of each project is to enable the auditor to express
a professional opinion(s) on the financial position of the project and the statement on the funds
received and expenditures incurred for the period ended December 3 1, 2018.
The specific objectives of the audit are to:
Audit the financial statements relating to CIWA, ECSSCRNBP to obtain reasonable assurance
that they are fully compliant with the grant agreement and other pertinent regulations;
Express an opinion on the adequacy or otherwise of the financial management and operations
of the project.
5.2    Audit Scope
The audit was carried out in accordance with International Standards of Auditing (ISA), In
conducting the audit, special attention was paid to whether:
The World Bank grant was used in accordance with the conditions of the grant agreement, with
due attention to economy and efficiency and only for the purposes for which the grant was
provided;
4' Counterpart funds were provided and used in accordance with the relevant grant agreement, with
due attention to economy and efficiency, and only for purposes for which they were provided;
*    Goods and services procured were in accordance with the grant agreement and in accordance with
the World Bank rules and procedures;
*    All necessary supporting documents, records and accounts were kept well in respect of all project
activities, including expenditures reported using Statement of Expenditures (SOE) or Interim
Financial Statements (IFS) methods of reporting;
4'   Designated Accounts were maintained in accordance with the provisions of the relevant grant
agreement and funds disbursed out of the Designated Accounts were used only for the purpose
intended in the grant agreement;
National laws and regulations were complied with, and that the financial and accounting
procedures approved for the project were followed and used;
Financial Performance of the project was satisfactory;
4'   Assets procured from project funds existed and there was verifiable ownership by the
implementing unit or beneficiaries in line with the grant agreement;
Ineligible expenditures (if any)  included in withdrawal applications were identified and
reimbursed to the designated Accounts;
*    There are adequate/effective accounting and internal control systems to enable efficient and
effective monitoring of expenditures, other financial transactions and effective management of
project assets and liabilities;
5.3    Audit Methodology and Procedures
The audit was guided by a strategically driven audit approach to meet audit objectives and some of
the audit procedures carried out included; strategic, operational and compliance reviews as described
below;
Reviewed terms of reference after signing the contract and oriented the audit team towards
achieving the audit objective within the agreed time frame and agreed work plan with
management.
Prepared a strategy audit document including tailored audit programmes and checklists to
meet audit objectives.
12


!k'prianrliommn wf  truooro fP
(or the p(erj odenId 3/1  * flctjb ur 20/N,
Reviewed background information including the Grant Agreement and the addend urns.
Identified and reviewed possibilities for relevant strategic risks and evaluated the strategic
control environment.
*0     We conducted systems based audit - tests to assess the effectiveness of the internal control
system.
<2t    We performed an overview of the Microsoft Navision software for suitability, efficiency and
effectiveness to meet recording and reporting requirements of the project.
Reviewed the progress in the implementation of agreed prior year audit recommendations
where applicable.
At     We carried out substantive tests on the significant project cycles as below;
5.3.1  Receipts from the World Bank
4*     Through enquiry, we documented the process of recording receipts from the World Bank and
confirmed that a separate bank account (the Designated Account) was opened for the funds
disbursed through withdrawal applications.
At    Through enquiry, documented the process of recording receipts from the World Bank
disbursed through direct payment withdrawal applications that do not pass through the special
account.
We agreed all receipts of funds from the World Bank to the copies of the withdrawal
application forms, bank statements, the Client connection website and the cashbooks.
Reconciled the application totals to bank receipts and confirmed completeness of recording.
5.3.2  Counterpart contributions and other receipts (if any)
*      We obtained understanding of the account, agreed balances to the ledgers, analysed their
respective ledgers whilst obtaining explanations and tested the transactions to supportive
documents for validity.
5.3.3  Payments
Vouched payments from cashbooks and ledgers against respective invoices, and against
evidence of receipt of goods or services and whether they were checked by management for
arithmetic accuracy, pricing, condition, authorisation and eligibility.
*      Checked completeness of recording and confirmed appropriate categorisation of costs to
correct eligible codes.
*      Assessed and confirmed official use of exchange rates in recording foreign exchange
transactions.
*      Reviewed all payments to ascertain whether the relevant taxes were paid.
5.3.4 Bank balances
4 Agreed the reported balances to the cashbook and the reconciled bank statements.
13


0      Traced clearance of un-presented cheques by reference to bank statements after tei closing
date of December 31, 2018.
It     Obtained explanations for long outstanding reconciling items not cleared at the time of audit.
tt     We reviewed to confirm whether bank reconciliations are performed on a regular basis and
reviewed by a senior official.
5.3.5  Other audit procedures
0*     We received minutes for management meetings and project management meetings during the
year for corroborative evidence to confirm assertions of the financial statements.
0      We reviewed internal controls as a basis for detection and reporting of frauds and suspicious
transactions.
We reviewed the ongoing contracts and computed the reviewed the levels of coinpletion of
the contracts and the outstanding payments as of December 31, 2018.
4*     We made inquiries to establish evidence of any pending litigations for or against the Project
and verified information for evidence of any related party transactions.
We reviewed the financial statements for compliance with GAAP and performed tasks to
ensure reporting compliance.
Audit results
Results from the audit are presented under: the auditor's reports on compliance on page 15; the
auditor's report on financial statements on pages 16 to 18, auditor's report on Special Account
operations on page 19; the audited financial statements on pages 20 to 22 and the management letter
appended to this report. All these reports form one integral audit report.
14


Rqmnit I-,, (vid r hIma  a  sf,tnvwJI
lor (ii proel L7hM(- ,I?i rv rwbLr  fp nS
6.0    AUDITOR'S REPORT ON MANAGEMENT COMPLIANCE WITH THE KEY
COVENANTS OF THE GRANT AGREEMENT
The audit was guided by the checklist presented under (i) -- (viii) to review compliance with
the key Terms of Referencc for the audit.
Audit instructions on the checklist and audit findings are presented below. Audit instructions
are bolded whilst audit conclusions and answers are inserted immediately after each
instruction in italics.
i)     Determine that all funds have been used in accordance with conditions of the relevant
funding agreements.
We concluded that all funds received in the period ended December 31, 2018 were used in
accordance with the relevant funding agreement provisions,
ii)    Determine whether goods and services financed have been procured in accordance with
relevant financing agreement provisions.
We concluded that goods and services financed were procured in accordance with the World
Bank Procurement Guidelines.
iii)   Determine that all necessary supporting documents, records and accounts have been
kept in respect of all project expenditures.
Having reviewed all quarterly accountability reports and the respective support documents,
we concluded that all necessary supporting documents, records and accounts have been kept
in respect of all project expenditures. Monthly reports were provided for review and the audit
found them adequately supported.
iv)    Determine whether the designated account has been maintained in accordance with the
provisions of the relevant financing agreement and funds disbursed out of the account
were used only for the purpose intended in the financing agreement.
We concluded that the designated account has been maintained in accordance with the
provisions of the relevant grant financing agreement and funds disbursed out of the account
were used only for the purpose intended in the grant agreement.
V)     Identify, evaluate and report on the Project's internal control structure.
We reviewed the internal control structure of the project. We concluded, based on our review,
that the internal control structure was generally adequate.
vi)    Determine whether the project management complied in all material respects with
agreement terms and applicable laws and regulations.
We concluded that there were no known instances of material non-compliance with
agreement terms, applicable laws and regulations.
vii)   Determine the eligibility and correctness of the financial transactions during the period
and fund balances at the end of December 31, 2018.
Our audit enabled us conclude that the financial transactions were eligible. The closing
balance as at December 31, 2018 on the project bank accounts was correctly reported.
½                                        Is


fo                                                    il  "'lo  en le I  I' 0e eh -20I
7.0   INDEPENDENT      AUDITOR'S     REPORT     IN  RESPECT     TO   THE    FINANCIAL
STATEMENTS OF NBD CIWA/WB GRANT NO TF0185834 FOR THE YEAR ENDED
DECEMBER 31, 2018
NBD Regional Manager
Plot 32, Nsamizi Road
Entebbe- Uganda
Opinion
We have audited the financial statements of the Engaging Civil Society and Climate Resilience in
the Nile Basin Project (ECSSCRNBP) which comprise the statement of financial position as at 3 1
December 2018, the statements of comprehensive income for the twelve months period ended 31
December 20 18, and the notes to the financial statements, which include a summary of significant
accounting policies and other explanatory notes as set out on pages 23 to 26.
In our opinion, these financial statements present fairly, in all material respects, the financial
position of the project for the year ended 31 December 2018 and of its operational results for the
year then ended, and are in accordance with the Significant Accounting Policies in Note II and
the ClWA-WB guidelines for Accountable Grant Agreement No. TF0185834.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs) and
Guidelines issued by the Institute of Certified Public Accountants of Uganda. Our responsibilities
under those standards are further described in the Auditor's Responsibilities for the Audit of the
Financial Statements section of our report. We are independent of NBD 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 Uganda, 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.
Going Concern
These financial statements have been prepared on a going concern basis because The Nile Basin
Discourse secured funding of US$ I million from the World Bank through the Cooperation in
International Waters in Africa (CIWA) covering a 3 year period, 2017 - 2019 to implement the
"Engaging the Civil Society for Social and Climate Resilience in the Nile Basin Project". As The
Nile Basin Discourse is continuously implementing the 2019 activity work plan, the organization
is in advanced stages with the World Bank to access more funding so as to implement both newly
introduced activities and ongoing activities at least for the next 12 months.
Key Audit Matters (KAM)
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 were
no key exceptional audit matters to communicate in this report.
Responsibilities of Management and those charged with Governance for Financial
Statements
Management is responsible for the preparation and fair presentation of the financial statements in
accordance with the Accounting Policies described in Note II of these financial statements and
16
Prindpals: John C. KavnndnrfC  r'PA  1%  r-l-  1 N   RAQA  FlDA  V) e'OA 11 ,  V r-AA41


0117-,/ Wh 6rantoNo //15,34
ueprnwv ordfenafcud Nal womi,
for thepewJe'mal3/J Ln,thoyer 20/
 the CWA-WB Financing Agreement. This responsibility includes: designing, implementing and
maintaining internal controls relevant to the preparation and fair presentation of financial
statements that are free from material misstatement, whether due to fraud or error; selecting and
applying appropriate accounting policies; and making accounting estimates that are reasonable in
the circumstance. Management is also responsible for determining the appropriate financial
reporting framework for the preparation of these financial statements.
In preparing the financial statements, management is responsible for assessing the project/entity's
ability to continue as a going concern, disclosing, as applicable, matters related to going concern
and using the going concern basis ofaccounting unless management either intends to liquidate the
entity or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the project/entity's financial
reporting process.
Auditor's 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 auditor's
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
aggregated, 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 judgment 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 Entity's internal control.
*      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 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 Entity's ability to continue
as a going concern. If we conclude that a material uncertainty exists, we are required to draw
attention in our auditor's 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
17
n  .kas;Jhnf c. vndo, FCCrA nPA t,.n charim r: ,-'.   o  sn  n a


NhI)-CIIVrd  I11-0l Ina   1/1/5'0-
Repv' and lenanu ad  r,feemelft
 1r A  ead  -nI  / II< opf/r 20/
evidence obtained up to the date of our auditor's 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 ,,ents in a
manner that achieves Jhir presentation.
We 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.
We also 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 wkhere 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 auditor's 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.
Report on Other Legal and Regulatory Requirements
We report to you based on our audit, that:
(i)    We have obtained all the information and explanations which to the best of our knowledge and
belief were necessary for the purpose of our audit;
(ii)   In our opinion, proper books of accounts have been kept by NBD for the ECSSCRNBP in so far as
appears from our examination of those books:
(iii)  The project financial statements are in agreement with the books of account:
(iv)   The proceeds from the World Bank were used in accordance with the conditions set out in the
financing agreement and only for the intended purposes:
(v)    Goods and services were procured in accordance with the World Bank loan agreement provisions;
and
(vi)   The statement of 1inancial position and statement of comprehensive income are in agreement with
the books of account.
Name of the Partner
The Engagement Partner responsible for this audit resulting in this independent auditor's report is CPA
Charles Gerald Mugerwa. Partner ofJasper-Semu & Associates, Practicing No. P0060 and Certificate No.
P098/1
asper-Semu & Associates
Certified Pubic Accountants
P.O. Box 8294
Kampala
Date..i-i.   .   n                   i
Principals: John C. Ka,='InIl


A,I  /W- ff W  (iU at0o, /I 015,I 4
RqNorei and finamoal , wcteean,
flr t on d p nelded 311 DN%mb4r 201
8.0    INDEPENDENT       AUDITOR'S     REPORT     ON   THE    SPECIAL    ACCOUNT
OPERATIONS
NBD Regional Manager
32, Nsamizi Road
Entebbe- Uganda
We have audited the Special Account Reconciliation Statement of Engaging Civil Society in
Social and Climate Resilience in the Nile Basin Project (ECSSCRNBP) for the period ended
December 31. 2018.
Management's responsibility for the financial statements
The Management of NBD, the implementing agency of the project is responsible for the
preparation and fair presentation of the Special Account Statement on the basis of cash deposits
and withdrawals for the purpose of complying with the Grant Agreement and for such internal
controls as Management determines is necessary to enable the preparation of the statements that
are free from material misstatement whether due to fraud or error.
Auditor's responsibility for the financial statements
Our responsibility is to express an opinion on the Special Account Statement, based on our audit.
We conducted our audit in accordance with International Standards on Auditing. Those standards
require that we comply with ethical requirements and plan and perform the audit to obtain
reasonable assurance whether the special account statement is free from material misstatement.
An audit involves performing procedures io obtain audit evidence about the amounts aid
disclosures in the Special Account Statement. The procedures selected depend on the auditor's
judgment, including the assessment of the risks of material misstatement of the financial
statements. whether due to fraud or error. In making those risk assessments, the auditor considers
internal controls relevant to the entity's preparation and fair presentation of the financial
statements in order to design audit procedures that are appropriate in the circumstances, but not
for the purpose of expressing an opinion of the effectiveness of the entity's internal control. An
audit includes evaluating the appropriateness of accounting policies used and the reasonableness
of accounting estimates made by management, as well as evaluating the overall presentation of
the financial statements. We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the receipts were properly accounted for and withdrawals were made for the
purposes of the project in accordance with the Grant Agreement. The Special Account Statement
contained in note 11.0 and; notes thereon fairly presents in all material respects the account
operations for the period ended December 31, 2018 in accordance with basis of accounting
describedlnder note 12 of this report.
Jasper emd& Associates
Certified Public Accountants
P.O. Box 8294
Kamnpala
Date....
Princpa!lslhflJ


0      STATEMENT OF CASH RECEIPTS AND PAYMENTS FOR THE SF. N
G RANT NO TF0185834 FOR THE YEAR ENDED DECEMBER 31, 2018
Particulars Notes iBuget Actual Atual
2018]2018                  2017
#nconw _e__
Donor unding (CIWA)         13.1    482,537.00    482,535,97   19],2')9
Other income (Forex Gans)                   -       2.483.59       90.75
Total Income                        482,537.00    485A)19.56   491,816.69
Epend itu re
Project expenditure         13.2    482,537,00    427,734.67   520,379.8
L(Dcit) for the yea r                             57,284.89   (28,562.49)
The Financial Statements on pages 20 to 22 were approved by NBD management
n.nand signed on its behalf by
Chairman, Board of Directors                Regional Manager
The Nile Basin Discourse                    The Nile Basin Discourse
7he significant accouning policies and ihe notes on pages 23 fo 26frm part fofhefinancil
statemnents.
20


100    STATEMENT OF FUND BALANCES FOR T9E N1) CR WA/W              , R    A N
TF015834 AS AT DECEMBER 31, 2018
[Particuis                                           208             2017
A start of year                                  -28,4C
(Dfic it)SurpIlus for the year  ____ _57,284.89                         4
Al end of period   __                  - -       28,880.91        -28,   9
Represented by:
Cirrent assets
Cash at bank and in hand                          61,881 2             -
_Rcevale 95.00 1,1u,9
62,276.21           974.53
Current liabilities
Paa bles                                          33,395.30        29,3-7:;
Net current assets                               28,880.91        -28,403.98
The Financial Statements on pages 20 to 22 were approved by NBD management
on ..    .       ....         and signed on its behalf by,
Chairman, Board of Directors               Regional Manager
The Nile Basin Discourse                   Thle Nile Basin Discourse
ie si gnifican accounting policies and the notes on pages 23 to 26firmn pal o/ ihe lancial
statements
21


c-~ iperao ld  3l I)-emb- 201A
11.0  NBD     CIWA/WB      GRANT      No.   TF015834     SPECIAL     ACCOUNT
RECONCILIATION STATEMENT AS AT 31 DECEMBER 2018
Particulars                                                        2018
USD
Opening DA Bank Balance as at JanUary 1, 2018              -      323-83
Opening UGX Bank Balance as at January 1, 2018                    286.37
Openi ng Cas h Book Ba lance as at Jan uary 1, 20 18 -37.46
Add:
Total Replenishments by World Bank                            482,535.97
Funds Available during the audited period to December 2018    482,498.51
Less:
Transfers to UGX Bank Account                                 I 17,700.00
Expenditures paid from DA Account                             231,002.19
Work Advances to Staff - Secretariat                           63,643.00
Staff Advances                                                  8,500.00
Total payments during the year                                420,845.19
Closing DA Cash Book Balance as at December 31, 2018           61,653.32
Add:
Closing Cash Book Balance (UGX) as at December 31, 2018           227.89
Add:
Closing Cash Book Balance (Petty Cash) as at December 31, 2018         -
Closing Cash and Bank Balance as at December 31, 2018          61,881.21
22


INVIO-(OR.4WH Grn  151134
Repor. ad finan  El WV,nmnt
lfor 6he portad oendkd 31 ) 0.,cembler 20/IS
12.0   SIGNIFICANT ACCOUNTING POLICIES
12.1   Accounting Entity:
The Nile Basin Discourse (NBD) works through a decentralized system, (NBD General
Assembly, NBD Board, NBD Regional Secretariat, National Discourse Forums and Local
Discourse Forums), and is both a non- Governmental Organization with a Secretariat
based in Entebbe, and as a regional network of networks of Civil Society Organizations
(CSOs) in the Nile Basin,. Since its launch in 2003, the organization still operates
regionally and country wide in each and every Nile Basin Country. NBD's full
membership comprises of the National Discourse Forums (NDFs) in the eleven (11) Nile
Basin Riparian States(NBRS) namely: Burundi, D.R. Congo, Egypt, Ethiopia, Eritrea,
Kenya, Rwanda, South Sudan, Tanzania, and Uganda. Currently, ten (10) NBRS are
active with the exception of Eritrea. Three members from each NDF form part of the
regional General Assembly of the NBD, that also includes representation from partners.
According to the NBD constitution, the Board functions under the General Assembly and
is composed of one member from each NDF chosen by that country.
Funding to NBD was made available under the multi-donor trust fund, Cooperation in
International Waters in Africa (CIWA) and administered by World Bank under
accountable grant agreement number TF015834 as per Amendment to the Letter of
Agreement signed on December20, 2016. These Financial Statements are for ClWA-WB
funding received under the grant agreement and present transactions through the
following project bank accounts:
Account Name            Currency          Bank            I Account Number
The Aile Basin Discourse United   States Stanbic    Bank
(ECSSCRNBP)             Dollars           Uganda Limited  j    9030007104161
The Nile Basin Discourse Uganda Shillings  Stanbic   Bank
(ECSSCRNBP)                               Uganda Limited       9030007104099
The principal accounting policies adopted in the preparation of these financial statements
are set out below:
12.2   Significant Accounting Policies
The principal accounting policies adopted in the preparation of these financial statements
are set out below. These policies have been consistently applied to all the years presented
unless otherwise stated.
a. Accounting convention
The financial statements are prepared under the historical cost convention.
b. Basis of preparation
The financial statements have been prepared on a modified cash basis of accounting
whereby receipts and expenditures are accounted for as and when received and paid
respectively. Modifications to this policy include: advances to staff are recognized as
receivables until they have been accounted for and audit fees, office rent, staff salaries,
utility bills and other statutory obligations are recognized as expenses when incurred as
opposed to when they were paid. Advances to other projects are recognized as receivables
until they are recovered. However, prepayments and accruals are recognised as assets
and liabilities.
23


,VH)-CI WAi   (ranINo 170 15/3 4
Reporn% awy/nnncral foremit
Jor ihjo peroml endvd 31 A-cvwbor 20(.8
These financial statements are therefore not intended to be presented in conformity with
International Financial Reporting Standards.
c. Receipts
Receipts are recognised as Income in the financial statements in the period in which they
are received. Interest income, if applicable, on bank deposits is recognised as and when
credited to the entity's bank account.
d. Expenditure
Expenditure is recognised in the financial statements in the period in which it is paid
rather than incurred. Therefore, no provision for accrued expenses is made in the financial
statements. Prepayments and accruals are recognized as assets and liabilities at the end of
the financial period for reporting purposes.
e. Fixed assets
Fixed assets are expensed in full in the year of acquisition/purchase and not capitalized. A
memorandum fixed assets register and stores system to monitor and control the inventory
movements is however maintained. Fixed assets both purchased and donated, held at
period end are not recognised in the statement of fund balances.
f. Foreign Currency Transactions and translations
The base currency for the program is US Dollars. Transactions denominated in other
currencies are translated into US Dollars at the rates ruling on the date of the transaction.
Monetary assets and liabilities held at year-end which are expressed in other currencies
are translated into US Dollar at rates ruling at that date. The resulting differences (if any)
are dealt with in the statement of receipts and payments.
g. Staff Gratuity
Staff gratuity is computed as a percentage of the employee's monthly salary and is
payable when the employee leaves the organization. The amount is accrued on a monthly
basis and is recognized as an expense when paid.
24


N110-47WA I tl) Grant M HI 5X34
Re'partv andtmrancwilenf,t
/or the perid ended 31 sf felur 2fHl
13.0   NOTES TO THE FINANCIAL STATEMENTS
13.1   Project funding NBD-ClWA/WB GRANT No. TF015834
Detailed disbursements
This represents transfers from the World Bank to the designated account of the
ECSSCRNBP project. The receipts during the period ended December 3 1, 2018 are
detailed below
World Bank          Actual Amount
Remittances in      Received on the DA
Posting Date  Document No.               2018 (US$)         (US)
2/7/2018      NBD/USD/W-BANK/018                 111,000.00              110,993.00
5/24/2018     NBD/USD/W-BANK/019                 104,570.97             104,563.97
8/14/2018     NBD/USD/W-BANK/020                 88,000.00               87,993.00
10/25/2018    NBD/USD/W-BANK/021                102,000.00              101,993.00
12/19/2018    NBD/USD/W-BANK/022                 77,000.00               76,993.00
482,570.97              482,535.97
13.2   Project Expenditure
Particulars                                         Budget       Actual     Actual
Expenditure                                       31-Dec-18    31-Dee-18  31-Dec-17
CAPTIQNS                                              USD          USD        USD
Personnel costs - Operations and Support staff    147,240,00  130,169.59    125,403
Rent, Utilities and Related Costs                 13,941.00    12,324.52     12,039
Office Consumables                                 3,108.00     2,747.21       893
Communication                                      5,699.00     5,037.85      5,172
Travel and Travel-related costs                   18,029.00    15,938.95     42,983
Equipment Supplies and Software Maintenance          594.00      524.86       3,285
Bank Charges                                       4,629.00     4,092.32      3,313
Other Core Costs                                  1l,605.00    10,259.65      4,331
Personnel costs - Program Staf                   170,417.00   150,658.90    143,058
Stren thening the NBD Secretariat Functions          468.00      413.87       5,706
Improving Communications and Outreach             38.586.00    34,111.97    102,709
Capacity Development of NBD Members               68,221.00    60,31 188     71,425
Forex Losses (Includes Amount and Invoice Rounding ofJ)   -     1,143.10        63
482,537.00   427,734.67  520,380.00
25


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13.3   Cash and bank balances
Particulars                                          Actual           Actual
31-Dec-18        31-Dec-17
USD              USD
Cash in hand                                              -
Cash at bank                                      61,881.21       -    37.46
Total cash at bank balances                       61,881.21        -   37.46
13.4   Receivables
The receivables represent work advances. These are as detailed in the table below;
Particulars                                          Actual           Actual
31-Dec-18        31-Dec-17
USD              USD
Work advances                                        39500         1,011.99
Total                                                395.00         1,011.99
13.5   Payables
Particulars                                          Actual          Actual
31-Dec-18        31-Dec-17
USD              USD
NSSF Payable                                        5,772.80        2,902.19
PAYE Payable                                       12,191.21        6,103.59
Provident Payable                                 12,881.52        12,881.52
Accruals and Payables                                     -         2,554.00
Other Creditors                                    2,549.77         4,937.21
Total                                             33,395.30        29,378.51
13.6   Contingent liabilities
There were no known contingent assets/ liabilities that qualify for accrual or disclosure as
at December 31, 2018.
13.7   Related party transactions
There were no known reportable related party transactions for the period ended December
31, 2018.
26