AUDTTORS'REPORT ON THE FINANCIAL STATEMENTS OF THE RURAL ROAD EMERGENCY MAINTENANCE rRoIEcr IMPLEMENTED BY THE MINISTRY OF PUBTIC WORKS FOR THE FTSCAL YEAR ENpEr) IUNE 30. ?016 It/fIAI*It/fNNRrl .f,'-rllt/IPAN\/'E'DTTE'TE N PITRI.If A .-.NIINTANTS AUDITORS'REPORT ON THE RURAL ROAD EMERGENCY MAINTENANCE PROJECT (RRf,MP) FOR THE YEAR ENDED TUNE 30, 2016 Contents Pdect Management Team J Report of the Auditors on the Financial Staternents 4-5 Balance Sheet 6 Fund Receipts & Disbursements Statement 7 Cash-flows Statement 8 Notes to the Financial Statements 9-ll SOEs & Designated Account Reconciliation Statement 12 Report of the Independent Auditors on Desilnated Account Statement 13-14 Report of the Independent Auditors on Statement of Expenditure l5-16 Schedule of Grant Withdrawals t7 Management Letter l8 t/'a:r - f,rrrlNrirl ,Q, r,^n/IDANv (aEpTrErEn prlRr rr, ar.r,rlrlNTAt\rTs AUDITORS'REPORT ON THE RURAL ROAD EMERGf,NCY MAINTENANCI PROIECT (RREMP) FOR THE YEAR ENDED IUNE 30,2016 PROJECT MANAGEMENT IMPLEMENTATION UNTI: INFRASTRUCTURE IMPLEMENTATION UNIT MIMSTRY OF PIJBLIC WORKS FINANCIAL MANAGEMENT: MINISTRY OF FINANCE & DEVELOPMENT PLANNING PROJECT FINANCIAL MANAGEMENT UNIT PROJECT OFFICIALS: Implementation Unit, L. Mr. Emmanuel Baker, Program Manager 2. Mr. V. Larry Reeves, Procurement Manager Project Financial Management Unit, Ministry of Finance & Development Planning 1. Dr. Christopher K. Sokpor, Unit Manager 2. Dr. Hussein Salia, Senior Project Accountant AUDITORS MGI MONBO & COMPANY Certifi ed Public Accountants 2"d Floor King's Building Corner Broad & Gurlev Streets Monrovia, Liberia nfa:r _ l|/trlNnfl ,Q, /-rIMDANV rtEpTrErEr} DrTnr rr. ArrlflrTNTANTc ffiMGI Mot{Bo&coturPAxr CERTIFIED PUBLIC ACCOUNTANTS Member Firm of MIDSNELL GROUP INTERNATIONAL Mr. Emmanuel K. Baker Program Manager Infrastructure Implementation Unit Ministry of Public Works Monrovi4 Liberia Dear Sir: REF: AUDITOBS'REPORT We have audited the accompanying balance sheet of the Rural Road Emergency Maintenance Project (RREI\P) under the International Development Association Grant and the related statements of fund receipts and disbursements, cash flows for the period eqded June 30, 2016 and a summary of significant accounting policies and explanatory notes on pages 9-l l. Management's Responsibility These financial statements preparation and fair presentation in accordance with International Public Sector Accounting Standards (IPSAS), adopted by the Government of Liberia and with relevant provisions of the Project Grant Agreement is the responsibility of the management of the Project Implementation Unit of the Rural Road Emergency Maintenance Project (RREN,P) and the Project Financial Management Unit of the Ministry of Finance & Development Planning. These responsibilities include; designing, implementing and maintaining internal controls relevant to the preparation and fair presentation of financial statements that are free from material misstatements, whether due to fraud or eror; selecting and applying appropriate accounting policies; and making estimates that are reasonable in the circumstances. Auditor's Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing promulgated by the International Federation of Accountants and International Organization of Supreme Audit Institution (INTOSA). These Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the project financial statements are free of material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the project financial statements. The procedures selected depend on the auditor's judgement, including the assessment of the risks of material misstatement of the project financial statement, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation ofthe project financial statements 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 include 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 project fi nancial statements. King's Building Znd Floor P. O. Box 3196 Cell: +231-6512549 Broad & Gurley Streets Monrovia, Liberia E-mail: monboco @ yahoo.com Monrovia, Liberia AUDITORS'REPORT ON THE RURAL ROAD EMERGENCY MNNTENANCE PROJECT (RREMP) FOR THE YEAR ENDED IUNE 30, 2016 We believe that the audit evidence we have obtained is sufTicient and appropriate to provide a basis for our audit opinion. Auditor's Opinion In our opinioq proper books.of accounts have been maintained and the financial statements referred to in the first paragraph above present fairly in all material respects, the financial position of the Rural Road Emergency Maintenance Project (RREI\@) as of June 30, 2016, the Receipts and Disbursements and cash flows for the period ended are in conformity with the Cash Basis International Public Sector Accounting Standard (IPSAS) promulgated by the International Federation of Accountants (IFAC), adopted by the Government of Liberia and IDA guidelines ,n, "re stipulated in the agreement for the proje ,& s4rG r tr#llu,(*.- t^<_. r: lf\il" l,/&.h t [.\: MONBO & COMFANY MGI-MONBO & CON4}AI.J \ lOlil?-n lvltrl-Ivlt .t\Itt gf-lrlvfrAl\I V\ CERTIIIIED PUBLIC ACCOUNTANTS ' :-_'\ I i November 17.2016 It/Ittr _ .lt/rnNRfl ,9, r,rll|/fp^Nv aE,pTrErEn DrrRr rr. Ara/-nrlNT^l\rrs AUDITORS'REPORT ON THE RURAL ROAD EMERGENCY MAINTENANCE PROJECT (RREMP) FOR THE YEAR ENDED IUNE 30, 2016 Rural Road Emergency Maintenance Project Balance Sheet As at June 30, 2016 ASSETS EMPTOYED 2015 CURRENTASSETS uss CASH AND BANK 85,201.02 TOTAT ASSETS 85,201.02 FUND BAIANCES ACCUMULATED FUN DS BALANCE 85,201_.02 TOTAT FUNDS BAIANCE 85,201.02 g:<-&*;, PROGRAM MANAGER,IIU MINISTRY OF PUBLIC WORKS DEVELOPMENT PLANMNG I DATE: }8,. "T G a_otG DATE: NOTES ON PAGES 9-11 FORM AN INTEGRAL PART OF TIIE FINANCIAL STATEMENTS turafr _ n/tttNRrl ,c, arlll/IDANv /rE DTrnrI'n Drlpr r.\ aar'frrINTANTs. AUDITORSRf,PORTT}NTHE RURAI, ROAD EMERGENCY MAINTENANCE PROJECT IRREMP) FOR THE YEAR ENDED IUNE 30, 2016 Rural Road Emergency Maintenance Project Fund Receipts and Disbursements Statement For the 15 Months ended June 34 2016 NOTES 2016 IDA Credit uss Reimbursenent 6 $0,m0.00 Direct Payment 7 765,507.32 To.tallDACredit 915,5073:r D|sBIIRSEMENTS Supply and installation of prefabricated steel bridges 3 314853.00 Supply and installation of timber road section 4 501,104.80 I ncrementa I operating cost 5 14338.s0 Total Disbursement 830,ilF.30 Excess of Receipts over Disbursements 85,201.02 Beginning Balance as at July t,20ts Accumulated Fund as at June 30,2016 ItmL02 NOTES ON PAGES 9-T1 FORM AN INTEGRAL PART OF THE FINANCIAL STATEMENTS t\f'PTfEIE'n pfTRI lft A(a/r(lfTNTAl\ITq il/ra:f - nfnNRfl ,e' J\f|lllfpAl\Iv AUDITORS'REPORT ON THE RURAL ROAD EMERGENCY MAINTENANCE PROJECT (RREMP) FOR THE YEAR ENDED JUNE 30, 2016 Rural Road Emergency MCintenance Project Cash Flows Statement For the 16 Months ended June 34 2015 NOTES 2016 Operating Activities uss Reimbursenent 5 150,000.00 Direct Payment 7 765,507.32 Net Operating Activities 915,507.32 Investing Activities Supply and installation of prefabricated steel bridges 3 (314,863.00) Supply and installation of timber rcad section 4 (501,104.80) Incrementa I operating cost 5 (14,338.50) Net Investing Activities (830,306.30) Net Increase/Decrease in Cash Balance 85,201.02 Beginning Balance as at July t,2Ot5 Net Cash Balance as at June 30, 2015 85,201.02 NOTES ON PAGES 9-11 FORM AN INTEGRAL PART OF TIIE FINANCIAL STATEMENTS RfI f. rlN]l/IDAN\/ flT'DTTE'TEN DrTNI r' A'r.rIrTNTAAITQ AUDITORS'REPORT ON THE RURAL ROAD EMERGENCY MAINTENANCE PROJECT IRREMP) FOR THE YEAR ENDED JUNE 30,2416 NOTES TO THE FINANCIAL STATEMENTS 1. Rural Road Emergency Maintenance Proiect (RREMP) The Government of Liberia has received a grant from the World Bank towards the cost of Rural Roads Emergency Maintenance Project (RREMP). The objective of the Project is to improve access to Ebola response infrastructure by spot improvement of targeted road links to Ebola Treatment Units, Community care centers and forward logistics bases in Lofa County. The main infrastructure consist of Bailey bridges and the timber road Sections which are to be installed in various location in Lofa County in the north of Liberia. The infrastructure implementation units (IIU) set up within the Ministry of Public Works (MPW), comprising a team of experts under the leadership of a Deputy program Manager, is charged with the overall responsibility of coordinating and implementing the project along with Technical services Department of the Ministry of Public Works. To oversee the implementation of this Project, the IIU appointed a project coordinator to provide technical and project management inputs. The project coordinator is supported by a project Engineer who will be responsible for the day- to-day on-site supervision/monitoring of the contracts. The project coordinator shall perform his duties in close collaboration with the Technical Services Department of the Ministry of Public Works, Feeder Road Section and the IIU. 2. Accounting Policies The following are the significant accounting policies adopted in the preparation of these financial statements: a) Basis of accounting The financial statements have been prepared on the historical cost convention and no procedures have been adopted to reflect either price changes or changes in the general level of inflation. b) Fixed assets Fixed assets represent the expenditure incurred in capital works and acquiring property and equipment. All fixed assets have been stated at the actual contracted cost of purchase or development. No depreciation is charged in the financial statements. lr/Ialr - lt/fnNRn .e, /-r|il/'p^Nv rE'pTrErtr.n prlRr r'1 a(-'-r\rINTANTS AUDITORS'Rf,PORT ON THE RURAL ROAD EMERGENCY MAINTENANCE PRO'ECT (RREMP) FOR THE YEAR ENDED IUNE 30, 2016 c) Foreign Currency translations Transactions in foreign currencies (currencies other than the United States Dollar) are converted at the rate ruling at the date in which the transaction took place. Current assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at the balance sheBt date and fixed assets at the rate of exchange ruling at the time of acquisition. Gains or losses arising on foreign currency transactions are credited to or charged against recurrent expenditure in the period in which they arise. d) Grants Grant is recognized on cash basis and credited to the donor account when received. 10 ItrIa:I _ ll/fnNRrl ,Q, arlL/fDANV a\E'pTrErl.n prlRr rr' Arir,frrINTANTC. AUDITORS'REPORT ON THE RURAL ROAD EMERGf,NCY MAINTENANCE PROJECT (RREMP) FOR THE YEAR ENDED JUNE 30, 2016 NOTE 3 2015 Supply and installation of prefabricated steel bridges uss Supply and installation of prefabricated steel bridges 314.863.00 TOTAL 314,853.00 NOTE 4 2015 Supply and installation of timber road section uss Supply and installation of timber road section 501,104.80 TOTAL _____:01,104.80_ NOTE 5 2016 Incremental operating cost us$ Monitori ng/Supervis ion costs 14,338.50 TOTAL 14338.s0 NOTE 6 2016 Reimbursement uss Central Bank 150,000.00 Total Reimbursement ___150,000.00_ NOTE 7 2016 Direct Payment us$ Central Bank 765.507.32 Total Direct Payment 765,507.32 NOTE 8 No Fixed assets were acquired during the year under review. 1t lltl:r _ ilralNPrl ,?, r-f|n,ID lI Nv .-E pTrn'rE n DrTRr rr' A ar-a]rINT A l\rTs AUDITORS'REPORT ON THE RURAL ROAD EMERGENCY MAINTENANCE PROJECT IRREMP} FOR THE YEAR ENDED JUNE 3O,2At6 Designated Account Reconciliation Statement For The 12 Months Ended 30 June 2015 Account Numfur :1502023496 Depository Bank :Central Bank of Liberia Address Ashmun Street Monrovia, Liberia IDA Credit Number :TF 40923 Currency :US$ 30-Jun-15 Designated Account Balance brought forward :" Advances/ Replenishment Transfers from IDA: MOF/RREMPIAO2 150,000.00 Total Funds in Designated Account 150,000.00 Less: Disbursement during the period (il,798.98) Balance as at June 30, 2016 85,201.02 NRft f,, rrrltufpANv t\EPTrFtEn prTRr r/- At\/rrlrlNTANTq ffiMGI Mot{Bo&coturPAxr CERTIFIED PUBLIC ACCOTJNTANTS Member Firm of MIDSNELL GROUP INTERNATIONAL INDEPENDENT AUDITORS' REPORT ON TITN DESIGNATEI} ACCOUNT STATEMENT FOR THE RURAL ROAD EMERGENCY MAINTENAI\ICE PROJECT We have audited the accompanying project Designated Account Statement of the Rural Road Emergency Maintenance Project financed by the International Development Association Grant as stated in this report for the year ended June 30, 2016. Management's Responsibility The Designated Account Statement preparation and the fair presentation of this Statement is the responsibilrty of the Rural Road Emergency Maintenance Project and the Project Financial Management Unit (PFM[I) at the Ministry of Finance & Development Planning, Republic of Liberia. This responsibility includes: designing, implementing , and maintaining internal control relevant to the fair presentation of the Designated Account Statement that is free from all material misstatement, whether due to fraud or effor, selecting and applying appropriate accounting policies: and making accounting estimates that are reasonable in the circumstances Auditor's Responsibility Our responsibility is to express an opinion on the Designated Account Statement based on our audit. We conducted our audit in accordance with International Standards on Auditing promulgated by the International Federation of Accountants. These Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the projea financial statements are free of material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the Designated Account Statement. The procedures selected depend on the auditor's judgement, including the assessment of the risks of material misstatement of the Designated Account Statement, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's prepaf,ation and fair presentation of the Designated Account Statement 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 include 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 Designated Account Statement. . King's Building 2nd Floor P. O. Box 3196 Cell: +231-6512549 Broad & Gurley Streets Monrovia, Liberia E-mail: monboco @ yahoo.com Monrovia, Liberia AUDITORS'REPORT ON THE RURAI. ROAD EMERGENCY MAINTENANCE PROJECT (RRf, MP) FOR THE YEAR ENDED IUNE 3A,2016 ln our opinion, the receipts have been properly accounted for and disbursements were made for the ffiF,-i MGI-MOIYBO AND COMPAII'Y CERTIT'IED PUBLIC ACCOUNTANTS November 17,2016 l4 l\t/fr - L/ffrNR^ ,c, r'art/tD^Nv /\EDTrFrEn prlRr rr' Ar'r'^TTNTAI\rTc ffiMGI turot{Bo&coMPANr CERTIFIED PUBLIC ACCOUNTANTS E'l Member Firm of MIDSNELL GROUP INTERNATIONAL INDEPENDENT AT]DITORS' REPORT ON THE STATEMENT OF'EXPENDITURE FOR THE RI]RAL ROAD EMETGENCY MAINTENANCE PROJECT We have audited the accompanying project Statement of Expenditure of the Rural Road Emergency Maintenance Project financed by the International Development Association Grant as stated in this report for the year ended June 30, 2016 and obtained all related information required. Management's Responsibility The Statement of Expenditure preparation and the fair presentation of this Statement is the responsibilrty of the Rural Road Emergency Maintenance Project and. the Project Financial Management Unit (PFMU) at the Ministry of Finance & Development Planning, Republic of Liberia. This responsibility includes: designing, implementing , and maintaining internal control relevant to the fair presentation of the Statement of Expenditure that is free from all material misstatement, whether due to fraud or error? selecting and applying appropriate accounting policies: and making accounting estimates that are reasonable in the circumstances. Auditor's Responsibility Our responsibility is to express an opinion on the Statement ofExpenditure based on our audit. We conducted our audit in accordance with International Standards on Auditing promulgated by the International Federation of Accountants. These Standards require that we comply with ethical requirements and plan and perficrm the audit to obtain reasonable assurance whether the project financial statements are free of material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the Statement of Expenditure. The procedures selected depend on the auditor's judgement, including the assessment of the risks of material misstatement of the Statement of Expenditurg whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the Statement of Expenditure 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 include evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management as well as evaluating the overall presentation ofthe Statement of Expenditure. In our opinion, the Statement ofExpenditure present fairly the view ofthe financial transactions of the Rural Road Emergency Maintenance Project for the period ended June 30, 2016 is in accordance with the Cash Basis International Public Sector Accounting Standards (IPSAS), adopted by the Government ofliberia and relevant provision ofthe Grant Agreement. King's Building Znd Floor P. O. Box 3196 Cell: +231-6512549 Broad & Gurley Streets Monrovia. Liberia E-mail: monboco @ yahoo.com Monrovia, Liberia AUDITORS'REPORT ON THE RURAI. ROAD EMERGENCY MAINTENANCE PROJECT (RREMP) FOR THE YEAR ENDf,D JUNE 30, 2016 Additionally, with respect to the Statements of Expenditure (SOEs), Sufficient supporting documentations have been maintained in accordance with Cash Basis International Public Sector Accounting Standards Promulgated by the International Federation of Accountants and the requirement ofthe World Bank guidelines The expenditures are eligible under the2(@n1BKelo Association Grant agreement llultJ,,L':mFm ' MGI.MONBO AND COMPA}I"Y . -_tW CERTIFIED PTIBLIC ACCOTJNTANTS November 17.2016 16 Lta:r _ lt/[^NR^,Q, nnntlr^Nv DrTRr ra aarrlrTNTAl\ITq 'iu.pTru'rE'n AUDITORS'REPORT ONTHE RURAL ROAD EMERGENCY MAINTENANCE PROJECT IRREMP} FOR THE YEAR ENDED 30, 2016 'UNE Rural Roads Emergency Maintenance Proiegt July 2015 - June 2016 Schedule of Expenditure Component Total Amt. Paid NO. Expenditure (usDl Component 1 Supply and installation of prefabricated steel bridges 314;863.00 2 Supply and installation of timber road section 501,104.80 3 lncrennntaloperating cost 14,338.50 __8flt 306.30- t7 Lf/:r * ttfiNnrl ,e, a\nilIp^Nv rlFpT[uTr.n prlRr rr ArtrtrlrTNTA t\ITs ANil t rrrtr _ ffiVTGT fuIOT,{BO&COMPANT , ! CERTIFIED PUBLIC ACCOUNTANTS Member Firm of MIDSNELL GROUP INTERNATIONAL November 17,2016 Mr. Emmanuel K. Baker Program Manager Infr astructure Implementation Unit Ministry ofPublic Works Monrovi4 Liberia Dear Sir: Ref: Managcment Letter As part of our audit, it is our responsibility to report to management our observations and recommendations for improvement. In the audit of the Rural Road Emergency Mainteaance Project, matters that could warrant a management letter did not come to our attention as such we did not issue a separate Management Letter report. '9*Qt.N lfullt-[,,(.A t lq1 tr{ar n't*.64 :ffi"n"N+ [\l8#Ffd,l.) ffi#"lill?#t113:HtilLJfu #z King's Building 2nd Floor P. O. Box 3196 Cell: +231-6512549 Broad & Gurley Streets Monrovia. Liberia E-mail: monboco @ yahoo.com Monrovia, Liberia The original had problem with text extraction. pdftotext Unable to extract text.