• • • MINISTRY OF HEALTH P.O. BOX M44 ACCRA • • REPUBLIC OF GHANA • • • - MATERNAL AND CHILD HEALTH 6 NUTRITION IMPROVEMENT PROJECT (MCHNP) 111111 MINISTRY OF HEALTH (MoH) AND GHANA HEALTH SERVICE [IDA LOAN No. 54630] • PROJECT FINANCIAL STATEMENTS • 31 DECEMBER 2018 • • • • • Your Health-Our Concern - . [ L TABLE OF CONTENTS ' I GENERAL INFORMATION PAGE REFERENCE 1 I INDEPENDENT AUDITORS' REPORT ON MCHNP COMPONENT '1' AND SUB COMPONENTS '2.2' & '2.3' FINANCIAL STATEMENTS 2-4 I STATEMENT OF FINANCIAL POSITION 5 I STATEMENT OF SOURCES AND USES OF FUNDS 6 I NOTES TO THE FINANCIAL STATEMENTS 7-8 I INDEPENDENT AUDITORS' REPORT ON MCHNP SUB - I COMPONENT '2.1' FINANCIAL STATEMENTS 9 - 11 I STATEMENT OF SOURCES AND USES OF FUNDS 12 NOTES TO THE FINANCIAL STATEMENTS 13 - 14 ! . I t I ( L GENERAL INFORMATION [ PROJECT BACKGROUND The Maternal and Child Health & Nutrition Improvement Project (MCHNP) is part of ongoing efforts to address prevailing disparities in access to maternal and child health services, and is expected to improve utilization of community-based health and nutrition. The Project will strengthen the community delivery structures for promoting health and nutrition services by supporting the community-level service delivery platform under the umbrella of the Community-Based Health Planning and Services (CHPS). The Project Development Objective (PDO) is to improve the utilization I rates of community-based health and nutrition services by women of reproductive age, pregnant women, and children under the age of two years. Objectives: The PDO will be achieved by: (i) increasing availability of high I impact health and nutrition interventions, and (ii) addressing access barriers using existing community-based health service delivery strategies and communications channels to inform, sensitize and motivate care- givers, community leaders and other key audiences. I Source of funding: The International Development Association (IDA) will provide an amount of SOR 44 million as a credit facility to support the MCHNIP in Ghana. IDA Loan Amount: SOR 44 million I Component 1: Community-Based Maternal and Child Health and Nutrition Interventions Component 2: Institutional Strengthening Capacity Building, Supervision, Monitoring and Evaluation, and Project Management Approval date: 30 July, 2014 Start date: February 17, 2015 Completion date: June 30, 2020 Implementation Agencies: I Ministry of Health - Sub Component 2. 1 Ghana Health Service - Component 1 and Sub Component 2.2 PROJECT IMPLEMENTATION TEAM Mr.Hamidu Adakurugu Ag. Chief Director E Dr. Afisah Zakaria, Chief Director (Former) Dr. Anthony Nsiah-Asare, Director-General/GHS Dr. Koku Awoonor, Director PPME/GHS Dr. Emmanuel Odame, Director PPME/MoH C Mr. Daniel A. Ayindingo, Financial Controller/MoH Mrs. Ramatu Ude Umanta, Director of Finance/GHS Mr. Barnabas Yeboah, MCHNP National Coordinator/MoH Mr. Bright Agyekum, Procurement Manager/MoH I • TECHNICAL ADVISORY GROUP Dr. Anthony Nsiah-Asare, Director-General/GHS Dr. Koku Awoonor, Director PPME/GHS Mrs. Ramatu Ude Umanta, Director of Finance/GHS Dr. Samuel Kaba, Director ICD Dr. Badu Sarkodie, Director Public Health Mr. Yaw Boakye, Project AccountanUGHS Mr. Kofi Poku, Director HASS I ADDRESS Ministry of Health P.O. Box M44 Accra I AUDITORS Ghana Audit Service Post Office Box MB 96 . I BANKERS UniBank UM Bank Ecobank BoG ! 1 [ - AUDIT SERVICE - In case of rep1y the number and date of the letter should be quoted - My Ref. No:..... .C.GAD/ADM/MCHNP/19/2 Your Ref. No.:................................. Good Governance and Accountability P. 0. Box ....................M..9.6.......................... . • Tel: 233 (0) 302 664920/28/29 Fax: 233 (0) 302 6751495 ACCRA Website: www.ghaudit.org 27JUNE 20 ............. ........................................................... 19 . • INDEPENDENT AUDITOR'S REPORT TO THE CHIEF DIRECTOR, MINISTRY OF HEALTH (MoH) • REPORT ON THE PROGRAMME FINANCIAL STATEMENTS • We have audited the financial statements of the Maternal and Child Health Improvement Project (MCHNP) under the International Development Agency (IDA) Loan referenced 54630 which, comprises the statement of financial position as at 31 • December, 2018, and the statement of sources and uses of funds for the period ended 31 December, 2018 which, have been prepared under the historical cost convention and on the basis of the accounting policies set out in Note 1 . • Management's responsibility for the financial statements • The financial statements for Component '1' and Sub-Components '2.2' and '2.3' are the responsibility of the Management of the MCHNP under the Ghana Health Service • (GHS). The Management of MCHNP is responsible for the preparation and fair presentation of these financial statements in accordance with generally accepted and accounting practice and the Loan Financing Agreement (ID A Loan referenced 54630) as well as for such internal control as management determined is necessary to enable the preparation of the financial statements free from material misstatement whether due to 11 fraud or error . • • • This responsibility includes designing, maintaining adequate financial management arrangements and ensuring that these continue to be effective throughout the reporting period; maintaining proper accounting records, which disclose with reasonable accuracy at any time of the financial position of the Programme; designing, implementing and maintaining internal controls relevant to the preparation and fair presentation of the Financial Statements and ensuring that they are free from material misstatements, whether due to fraud or error; safeguarding the assets of the programme; selecting and applying appropriate accounting policies; and making • • accounting estimates that are reasonable in the circumstances . 2 .r .r Auditor's responsibility Our responsibility is to express an independent opinion on these financial statements t based on our audit. We conducted our audit in accordance with International Standards of Supreme Auditing Institutions (ISSAis) and the guidelines in the Loan Financing Agreement. Those standards require that we comply with the ethical requirements and I plan and perform the audit to obtain reasonable assurance on whether the Financial Statements are free from material misstatement whether caused by fraud, other irregularity or error. I An audit includes performing procedures to obtain audit evidence about the amounts and disclosures in the Financial Statements. The procedures selected depend on the I auditor's judgment, including the assessment of the risk of material misstatement of the Financial Statements, whether due to fraud or error. In making those risk assessments, I . the auditor considers internal controls relevant to the entity's preparation and fair presentation of the programme 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 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 we have obtained sufficient appropriate audit evidence to provide a I basis for our audit opinion. Opinion In our opinion, the Financial Statements for Component '1' and Sub-Components '2.2' and '2.3' present fairly, in all material respects, the financial position of MCHNP as at 31 December, 2018, and the results of its operations for the period is in accordance with the provisions of the Loan Financing Agreement (ID A Loan referenced 54630) and the accounting policies set out in Note 1 of the Project financial statements. Report on compliance " • I In addition, Management has complied, in all material respects, with the covenants of the Loan Financing Agreement (IDA Loan referenced 54630), MCHNP Manual and the I applicable Government Laws and Regulations, and that the funds received during the period under audit were used for the eligible purposes for which they were intended and were properly accounted for as at the year ended 31 December, 2018. " • 3 C C Restriction of use [ This report is intended solely for the use of the Management of the project, IDA, and the Government of Ghana, and should not be used for a ot er purpose. C I NFUL ~~CUAI/CGAD for: AUDITOR-GENERAL I I I E I I I I ! It I I • • • .' r 4 • C L GHANA HEALTH SERVICE [ MARTENAL AND CHILD HEAL TH & NUTRITION IMPROVEMENT PROJECT · COMPONENT '1' & SUB COMPONENTS '2.2' AND '2.3' IDA LOAN NUMBER: 54630 [ STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER, 2018 E 2018 2017 I NON-CURRENT ASSETS NOTE US$ US$ Non capital expenditure 2 20,729, 126.26 13,893,789.32 • I CURRENT ASSETS Bank Balance 3 2,129,883.58 815,220.52 .' Advance Total Assets 0.00 2, 129,883.58 22,859,009.84 650,000.00 1,465,220.52 15,359,009.84 I! I FINANCED BY I IDA Designated Loan A/C Other Income 4 5 22,812,501.79 46,508.05 15,312,501.79 46,508.05 22,859,009.84 15,359,009.84 I Director of Finance, GHS Mrs. Ramatu Ude l,Jmanta I Date: ?- 7 Jt,-C, I :i.:o t c:; I I The attached notes 1 to 7 form an integral part of these financial statements. E , • 5 GHANA HEALTH SERVICE [ MARTENAL AND CHILD HEALTH & NUTRITION IMPROVEMENT PROJECT - COMPONENT '1' & SUB COMPONENTS '2.2' AND '2.3' IDA LOAN NUMBER: 54630 STATEMENT OF SOURCES AND USES OF FUNDS FOR THE PERIOD ENDED 31 DECEMBER, 2018 Cumulative 2018 2017 NOTE Total US$ US$ 2018 US$ I ' Balance as at 1 January Receipts: 815,220.52 6,731,140.41 0.00 Replenishment to IDA Loan Designated A/C 8,150,000.00 0.00 22,812,501.79 I Net Interest earned Funds available/ Total Project Receipts 2,940.00 8,965,220.52 31,803.65 6,762,944.06 46,508.05 22,859,009.84 Uses of Funds Component 1: Community Based Maternal and Child Health and Nutrition 1.1 Strengthening Service Delivery 5,128,011.05 4,967,976.07 15,150,392.45 • • 1.2 Piloting Community Performance Based 1,262,464.31 598,243.60 2,009,827.91 Financing (CPBF) 1.3 Other sub activities 0.00 0.00 0.00 Component 2: Institutional Strengthening I Capacity Building, Supervision, Monitoring and Evaluation and Project Management 2.1 Stewardship, Policy and Lessons 0.00 0.00 0.00 Learning 2.2 Supervision, Monitoring and Evaluation 444,861.58 342,149.86 3,525,337.85 and Project 2.3 Other sub activities 0.00 39,354.01 43,568.05 Total Project Expenditure 6,835,336.94 5,947,723.54 20,729,126.26 Balance as at 31 December 815,220.52 2,129,883.58 C Reconciliation of Designated A/C as at 2,129,883.58 ! 31 December Bank balance 2,126,943.58 2,940.00 787,630.92 27,589.60 2,126,943.58 2,940.00 Interest ! Balance as at 31 December 2,129,883.58 815,220.52 2,129,883.58 • I The attached notes 1 to 6 form an integral part of these financial statements. 6 [ . GHANA HEAL TH SERVICE MARTENAL AND CHILD HEAL TH & NUTRITION IMPROVEMENT PROJECT - • COMPONENT '1' & SUB COMPONENTS '2.2' AND '2.3' IDA LOAN NUMBER: 54630 • NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER, 2018 • 1. Significant Accounting Policies The following are summary of the significant accounting policies adopted in the preparation of the financial statements: Basis of accounting • The financial statements have been prepared on IPSAS cash basis and under the historical cost convention. This means that revenue and expenditures are recognized in the financial statements only when they are received and paid for respectively. Under the historical cost • convention, assets and liabilities are reflected or disclosed in the financial reports at the cost incurred or price paid at the time of transaction . • Property, plant and equipment . All Property, Plant and Equipment acquired or constructed under all sources of funding have been stated at the actual payments made during the year and shall not be depreciated. . Depreciation No depreciation has been charged in the financial statements. • Revenue and expenditure . Revenue is recognised when funds are received from IDA and expenditures are accounted for in the year when goods, works and services are incurred and paid . Donor/Financier Funds received are accounted for on cash basis. Foreign currency exchange • Foreign currency translation for funds received from IDA are converted using the actual spot exchange rate at the conversion from special to local account The reporting currency is in US Dollars. Non capital expenditure All non-capital items such as Goods & Services, Consultancies, Training, and other Project Operating Costs are shown in the financial statements under Non-Capital Expenditure . • .. 7 , L , . 2. Non capital expenditure Opening Additions during Closing .r Goods, Works, non balance 1 January, 2018 US$ 10,650,413.68 the year US$ 4,499,971.05 balance 31 December, 2018 US$ 15,150,384.73 Consulting Services, etc. Under Part A.1(a} Goods, non consulting 2,496,012.04 1,072,901.58 3,568,913.62 Services, Consultant's ser- Vices, etc. under Parts A.1 (b} and B CPBF Service Grants 747,363.60 1,262,464.31 2,009,827.91 • Under Part A2 • " .. 3. Bank balance 13,893,789.32 6,835,336.94 20, 729.126.26 ! This represents available cash and cash equivalents in the IDA Loan USO Designated • • Account. 4. IDA Funds I 2018 US$ 2017 US$ I Balance b/f 15,312,501.79 15,312,501.79 , . 5. Releases Balance c/f Other income 7,500,000.00 22,812,501.79 0.00 15,312,501.79 This represents interest earned on bank balance as at the end of the year. 6. Other sub-activities I • This represents the transfer of accrued interest earned to Ghana Health Service Operational Pool Account. I 8 ... AUDIT SERVICE • In case of reply the number and date of the letter should be quoted ... My Ref No:CGAD/ADM/MCHNP/19/2 Your Ref No: .......................... .. P. 0. Box ............. M.~?..9-.................... .. Good Governance Tel: 233 (0) 302 664920/28/29 and Accountability ACCRA Fax: 233 (0) 302 6751495 27JUNE 19 Website: www.ghaudit.org .............................................. 20 ......... .. • INDEPENDENT AUDITOR'S REPORT TO THE CHIEF DIRECTOR, MINISTRY OF HEALTH (MoH) REPORT ON THE PROGRAMME FINANCIAL STATEMENTS . We have audited the financial statements of the Maternal and Child Health Nutrition Improvement Project (MCHNP) under the International Development Agency (IDA) Loan referenced 54630 which, comprises the statement of sources and uses of funds for • the period ended 31 December, 2018 which, have been prepared under cash basis and historical cost convention. • Management's responsibility for the financial statements • The financial statements for Sub-Components '2.1' are the responsibility of the Management of the MCHNP under the Ministry of Health (MoH). The Management of MCHNP is responsible for the preparation and fair presentation of these financial statements in accordance with generally accepted and accounting practice and the Loan Financing Agreement (IDA Loan referenced 54630) as well as for such internal control as management determined is necessary to enable the preparation of the financial statements free from material misstatement whether due to fraud or error. This responsibility includes designing, maintaining adequate financial management arrangements and ensuring that these continue to be effective throughout the reporting period; maintaining proper accounting records, which are disclosed with reasonable accuracy at any time of the financial position of the Programme; designing, implementing and maintaining internal controls relevant to the preparation and fair • • presentation of the Financial Statements and ensuring that they are free from material misstatements, whether due to fraud or error; safeguarding the assets of the programme; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances. 9 [ [ Auditor's responsibility Our responsibility is to express an independent opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards C of Supreme Auditing Institutions (ISSAis) and the guidelines in the Loan Financing Agreement. Those standards require that we comply with the ethical requirements and plan and perform the audit to obtain reasonable assurance on whether the Financial ._ I Statements are free from material misstatement whether caused by fraud, other irregularity or error. C An audit includes performing procedures to obtain audit evidence about the amounts and disclosures in the Financial Statements. The procedures selected depends on the auditor's judgment, including the assessment of the risk 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 programme 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 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 we have obtained sufficient appropriate audit evidence to provide a basis for our qualified audit opinion. Opinion In our opinion, the Financial Statements for Sub-Components '2.1' present fairly, in all material respects, the financial position of MCHNP as at 31 December, 2018, and the results of its operations for the period is in accordance with the provisions of the Loan Financing Agreement (IDA Loan referenced 54630) and the accounting policies set out in Note 1 of the Project financial statements. Report on compliance In addition, Management has complied, in all material respects, with the covenants of I • the Loan Financing Agreement (IDA Loan referenced 54630), MCHNP Manual and the applicable Government Laws and Regulations, and that the funds received during the period under audit were used for the eligible purposes for which they were intended and were properly accounted for as at the year ended 31 December, 2018 · 10 , . [ Restriction of use [ This report is intended solely for the use of the Management of the Project, IDA, and the Government of Ghana, and should not be used for any other purpose. C I I for. AUDITOR-GENERAL • fH II • i I • • • 11 . MINISTRY OF HEAL TH MARTENAL AND CHILD HEAL TH & NUTRITION IMPROVEMENT PROJECT - SUB COMPONENT '2.1' IDA LOAN NUMBER: 54630 STATEMENT OF SOURCES AND USES OF FUNDS FOR THE PERIOD ENDED 31 DECEMBER, 2018 Note Cumulative 2018 2017 as at 2018 US$ US$ US$ • Balance as at 1 January 1,194,521.82 393,434.79 0.00 Receipts: IDA Loan Designated USO A/C 2 1,000,000.00 1,000,000.00 IDA Loan Designated Cedi A/C 0.00 0.00 650,000.00 Interest Income 4,029.89 518.71 4 548.60 • Funds Available/ Total Project Receipts 1,198,551.71 1,393,953.50 1,654,548.60 . Uses of funds Transfer to GHS (Advance Repayment) Operating Expenses 3 4 650,000.00 2,140.02 0.00 96,552.70 650,000.00 106,249.40 Monitoring & Evaluation 5 31,248.22 25,971.00 168,361.46 Workshop & Seminars 0.00 67,190.35 146,352.65 Procurement Expenses 6 8,775.82 9 717.63 77 197.44 Total expenditure 692,164.06 199,431.68 1,148,160.95 • Balance as at 31st December 506,387.65 1.194,521.82 506,387.65 • Reconciliation of cash and cash equivalents as at 31 December IDA Loan Designated USO A/C 53,482.05 1,000,518.71 53,482.05 ... IDA Loan Designated Cedi A/C 452,905.60 194,003.11 452,905.60 Bank and cash balances as at 31 December 506,387.65 1.194,521.82 506,387.65 • . • Chief Director, MoH Nana Kwabena Adjei Mensah Financial Controller, MoH Mr. Daniel A. Ayindingo Date: 21 -tfb - t~ Date: J.'":::j- ob - q I • The attached notes 1 to 6 form an integral part of these financial statements. - 12 • _,,,,., . [ MINISTRY OF HEAL TH r ... MARTENAL AND CHILD HEALTH & NUTRITION IMPROVEMENT PROJECT - SUB COMPONENT '2.1' IDA LOAN NUMBER: 54630 . r NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER, 2018 I 1. Significant Accounting Policies The following are summary of the significant accounting policies adopted in the preparation of the financial statements: Basis of accounting The financial statements have been prepared on IPSAS cash basis and under the historical cost convention. This means that revenue and expenditures are recognized in the financial statements only when they are received and paid for respectively. Under the historical cost convention, assets and liabilities are reflected or disclosed in the financial reports at the cost incurred or price paid at the time of transaction. Property, plant and equipment All Property, Plant and Equipment acquired under all sources of funding have been stated at the actual payments made during the year and shall not be depreciated in the financial statements Revenue and expenditure • Revenue is recognised when funds are received from IDA and expenditures are accounted for in the year when goods, works and services are incurred and paid. Donor/Financier Funds received are accounted for on cash basis. Foreign currency exchange Transactions that are denominated in currencies other than the United States Dollars are translated in United States Dollars at the exchange rate prevailing at the date of transactions. However, transactions in the sources and uses of funds for the year are translated using the average spot rate. Bank and cash balances denominated in other foreign currencies are translated into US Dollars at the rate prevailing at the end of the year. Non capital expenditure All non-capital items other than fixed assets shall be treated as fictitious assets in the I ii statement of financial position. 13 • . • 2. IDA Loan Designated USD Account . This represents funds received from IDA during the period 3. Reimbursement of funds advanced from Ghana Health Service This represents reimbursement of funds advanced from Ghana Health Service upon receipt of funds from World Bank. 4. Operation cost This relates to the administrative, office incremental cost and exchange losses on daily running of the MCHNP Secretariat at MoH. 5. Monitoring and Evaluation This relates to expenses incurred on monitoring and evaluation conducted on MCHNP implementation activities. 6. Procurement cost This relates to procurement cost incurred on procurement advertisement, evaluation and other related expenses . • • 14