M U U U U U AUDITOR'S REPORT ON THE FINANCIAL STATEMENTS OF THE EBOLA RECOVERY & RECONSTRUCTION PROJECT GRANT#: TF A1O17 IMPLEMENTED BY THE MINISTRY OF EDUCATION FOR THE PERIOD ENDED FEBRUARY 28,2017 % U U U U g AUDITOR'S REPORT ON THE EBOLA RECOVERY & RECONSTRUCTION PROJECT (ERRP) GRANT #: TF A1017 FOR THE PERIOD ENDED FEBRUARY 28,2017 I Contents Project Management Team 3 I Report of the Auditors on the Financial Statements 4-5 Balance Sheet 6 Fund Receipts & Disbursements Statement 7 Cash-flows Statement 8 Notes to the Financial Statements 9-11 SOEs & Designated Account Reconciliation Statement 12 Report of the Independent Auditors on Designated Account Statement 13-14 Report of the Independent Auditors on Statement of Expenditure 15-16 Schedule of Grant Withdrawals 17 Management Letter 19 I I I I I I I AUDITOR'S REPORT ON THE EBOLA RECOVERY& RECONSTRUCTION PROJECT (ERRP) GRANT #: TFAI17 FOR THE PERIOD ENDED FEBRUARY 28,2017 I I PROJECT MANAGEMENT I FINANCIAL MANAGEMENT: MINISTRY OF FINANCE & DEVELOPMENT PLANNING PROJECT FINANCIAL MANAGEMENT UNIT PROJECT OFFICIALS: Implementation Unit, 1. Mr. Saa David Nyuma - Assist. Minister, Project Coordinator 2. Ms. Comfort F. Tumbay - Procurement Specialist Project Financial Management Unit, Ministry of Finance & Development Planning I. Dr. Christopher K. Sokpor, Unit Manager 2. Dr. Hussein Salia, Senior Project Accountant I 3. Mr. Subozu Kollie, Project Internal Auditor AUDITORS MGI MONBO & COMPANY Certified Public Accountants 2nd Floor King's Building Corner Broad & Gurley Streets Monrovia, Liberia 3 MP-11I -M~ANMn , PAMLfP A 1VV PVDT71IVI TT TP A Pi"nITN~.T A V'rQ * MGI MONBO & COMPANY CERTIFIED PUBLIC ACCOUNTANTS Member Firm of MIDSNELL GROUP INTERNATIONAL Project Coordinator Ebola Recovery & Reconstruction Project (ERRP) Ministry of Education Monrovia, Liberia Dear Sir: REF: AUDITOR'S REPORT We have audited the accompanying balance sheet of the Ebola Recovery & Reconstruction Project (ERRP) under the World Bank Grant (TF A1017) and the related statements of fund receipts and disbursements, cash flows for the period ended February 28, 2017 and a summary of significant accounting policies and explanatory notes on pages 9-11. 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 Ebola Recovery & Reconstruction Project (ERRP) at the Ministry of Education 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 error; selecting and applying appropriate accounting policies; and making estimates that are reasonable in the circumstances. Auditor0s 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 judgment, 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 of the 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 financial statements. King's Building 2nd Floor P. 0. Box 3196 Cell: +231-6512549 Broad & Gurley Streets Monrovia, Liberia E-mail: monboco@yahoo.com Monrovia, Liberia AUDITOR'S REPORT ON THE EBOLA RECOVERY & RECONSTRUCTION PROJECT (ERRP) GRANT #: TF A1017 FOR THE PERIOD ENDED FEBRUARY 28,2017 We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Auditor's Opinion In our opinion, 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 Ebola Recovery & Reconstruction Project (ERRP) (TF A1017) as of February 28, 2017, 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 stipulated in the agreement for the project. AVPI MONB0 & COMPA NY MGI-MONBO & COMPANY Or INTI CERTIFIED PUBLIC ACCOUNTANTS June 20, 2017 5 I I 55 I AUDITOR'S REPORT ON THE EBOLA RECOVERY & RECONSTRUCTION PROJECT (ERRP) GRANT #: TF A1017 FOR THE PERIOD ENDED FEBRUARY 28,2017 EBOLA RECOVERY & RECONSTRUCTION PROJECT GRANT#: TF A1017 BALANCE SHEET AS AT FEBRUARY 28,2017 NOTES 28-Feb-17 30-Jun-16 Cunent Assets: US$ US$ Bank & Cash Balance 3 47,505 320,550 Total Cun-ent Assets 47,505 320,550 Fund Balance Accumulated Fund 47,505 320,550 Total 47,505 320,550 PROJECT COORDINATOR, ERRP UNIT MANAGE<#PMU MINISTRY OF EDUCATION MINISTRY OF FINANCE & DEVELOPMENT PLANNING I DATE: i-I DATE: NOTES ON PAGES 9-11 FORM AN INTEGRAL PART OF THE FINANCIAL STATEMENTS 6 M- X4ANUnef 2frAPA VV rV?DT11V1W" VITU Pir A' PACT1TT A N'F I AUDITOR'S REPORT ON THE EBOLA RECOVERY & RECONSTRUCTION PROJECT (ERRP) GRANT #: TF A1017 FOR THE PERIOD ENDED FEBRUARY 28, 2017 I EBOLA RECOVERY & RECONSTRUCTION PROJECT GRANT#: TF A1017 STATEMENT OF FUND RECEIPTS AND DISBURSEMENTS FOR THE PERIOD ENDED FEBRUARY 28, 2017 Fund Receipts: Notes 28-Feb-17 30-Jun-16 USS USS GRANTS 4 504,343 495,658 Others-Miscellaneous - - Total Receipts 504,343 495,658 Disbursements Goods 5 (471,765) (12,973) Consultancy 6 - (12,760) Non-Consultancy 7 (305,623) (149,375) Total Disbursements (777,388) (175,108) Excess of Receipts over Payments (273,045) 320,550 Beginning Balance as at July1, 2016 320,550 - Accumulated Funds as at February 28, 2017 3 47,505 320,550 NOTES ON PAGES 9-11 FORM AN INTEGRAL PART OF THE FINANCIAL STATEMENTS 7 u x _ unwne , nuIMyP&V ToTjlwln PITAI Io AprINTANalr I AUDITOR'S REPORT ON THE EBOLA RECOVERY & RECONSTRUCTION PROJECT (ERRP) GRANT #: TF A1017 FOR THE PERIOD ENDED FEBRUARY 28,2017 EBOLA RECOVERY & RECONSTRUCTION PROJECT GRANT#: TF A1017 CASH FLOWS STATEMENT FOR THE PERIOD ENDED FEBRUARY 28, 2017 28-Feb-16 30-Jun-16 Operating Activities us $ uS $ Grant Receipts 504,343 495,658 Goods (471,765) (12,973) Consultancy (12,760) Non-Consultancy (305,623) (149,375) Total Operating Activities (777,388) (175,108) Net (Decrease) Increase in Cash Balance (273,045) 320,550 Begining Balance July 1, 2016 320,550 Balance as at February 28, 2017 47,505 320,550 NOTES,ON PAGES 9-11 FORM AN INTEGRAL PART OF THE FINANCIAL STATEMENTS I I 8 uf _ unan 2MnNn ,e AnV CVer1n" rIRY [ A&rmnr A N1r 1 1 AUDITOR'S REPORT ON THE EBOLA RECOVERY & RECONSTRUCTION PROJECT (ERRP) GRANT #: TFA1017 FOR THE PERIOD ENDED FEBRUARY 28,2017 I NOTES TO THE FINANCIAL STATEMENTS 1. Ebola Recovery & Reconstruction Project (ERRP) The project is financed by Ebola Recovery and Reconstruction Trust Fund for an amount of US$ Imillion. The project development objective (POD) is to support the implementation of key elements of the Liberian Education Sector's short-term Ebola response plan to minimize the impact of the epidemic on school-age children by safely reopening schools, motivating students and teachers to return to the classroom, and enhancing the quality of learning. The project has four components: a) Component 1: Health and Hygiene b) Component 2: Information Dissemination c) Component 3: Support to Students, Families and Schools d) Component 4: Project Coordination and Operating Costs 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. 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 sheet 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. 9 I ~ fMPT1- MnfNMnA 2 n%4LPAM IV I'ITTIM PTUT Ir A PrnTINTA VIMT 1 AUDITOR'S REPORT ON THE EBOLA RECOVERY & RECONSTRUCTION PROJECT (ERRP) GRANT #: TF A1017 FOR THE PERIOD ENDED FEBRUARY 28,2017 NOTE-3 28-Feb-17 30-Jun-16 Bank & Cash Balances US S US $ TF A1017 47,505 320,550 Tatal Bank & Cash Balance 47,505 320,550 NOTE-4 GRANS Reimursenents-(A) World Bank 504,343 495,658 Total 504,343 495,658 Direct Payments-(B) World Bank - - Total - - Total GRANT{-(A+B) 504,343 495,658 NOTE-5 28-Feb-17 30-Jun-16 Goods USS USuS Printing of deworming materials, distribution materials for text books & printing of teachers training materials 471,765 5,025 Procurement of stamps & inks for stamping of books and office supplies including training materials - 7,948 TWal Goods 471,765 12,973 NOTE-6 28-Feb-17 30-Jun-16 Consultancy US S US S External Financial Audit - Recruitment of lEC firm - 12,760 Total Consafkancy - 12,760 10 X- MAnRnX rn4VA1VV fV(DTMVfl PITMf IC A rd"nTVMTA1VT4Z AUDITOR'S REPORT ON THE EBOLA RECOVERY & RECONSTRUCTION PROJECT (ERRP) GRANT #: TF A1017 FOR THE PERIOD ENDED FEBRUARY 28,2017 NOTE-7 28-Feb-17 30-Jun-16 Non-Consultancy USS US$ Distribution of secondary education textbooks - (9,190) Truck rental to counties for text book distribution - 14,050 Vehicle rental for deworming - 28,725 Bank charges 400 150 Vehicle rental pickup to counties for text book distribution - - Monitoring cost-Project Support Team 214,201 - Project Management Costs 10,910 - Vehicle Running Costs 80,112 - Warehouse rental - - Training & Workshops - 115,640 Total Non-Consutancy 305,623 149,375 Item No. Beneficiaries Contract Description Outstanding Commitment 1 Page Technologies, Inc Vehicle rental for textbook distribution 11,190.00 2 Page Technologies, Inc Vehicle rental for textbook distribution 1,020.00 3 MGI & Company Audit fee for the project 10,700.00 4 S.K. Posun Counsultancy 3,000.00 5 Lamine Kamara DSA for text book distribution 200.00 6 Deborah Walace DSA for text book distribution 600.00 7 Yasmin R. Freeman DSA for text book distribution 500.00 8 Amos Jolo DSA for text book distribution 500.00 27,710.00 I I I I 11 AUDITOR'S REPORT ON THE EBOIA RECOVERY & RECONSTRUCTION PROJECT (ERRP) GRANT #: TF A1017 FOR THE PERIOD ENDED FEBRUARY 28,2017 Designated Account Reconciliation Statement For The Period Ended February 28, 2017 Account Numbers : 1502023441 Depository Bank Central Bank of Liberia Address :Ashmun & Randall Streets Monrovia, Liberia Credit Number : TF A1017 Currency :US $ 28-Feb-17 Designated Account Balance at December 1, 2015 - Advances/ Replenishment Transfers Reimbursements t7F Grant) ERRP/MOF/001 300,000 ERRP/MOF/002 119,940 ERRP/MOF/003 75,718 ERRP/MOF/004 149,756 ERRP/MOF/005 30,340 ERRP/MOF/006 51,109 ERRP/MOF/007 78,195 ERRP/MOF/008 56,240 ERRP/MOF/010 7,840 ERRP/MOF/011 78,517 ERRP/MOF/012 52,345 1,000,000 Other-Miscellaneous . Funds received into Designated Account 1,000,000 Less: Disbursement during the period (952,495) Balance as at February 28, 2017 47,505 N N N 12 %ry- xf'AvnnA rnmm, ( m v rp wV ypyrT n Py1 Tni1' A rrnYT TVT A NTr  MGI MONBO & COMPANY CERTIFIED PUBLIC ACCOUNTANTS Member Firm of MIDSNELL GROUP INTERNATIONAL INDEPENDENT AUDITOR'S REPORT ON THE DESIGNATED ACCOUNT STATEMENT FOR THE EBOLA RECOVERY & RECONSTRUCTION PROJECT We have audited the accompanying project Designated Account Statement of the Ebola Recovery & Reconstruction Project financed by the World Bank Grant (TF A1017) as stated in this report for the year ended February 28, 2017. Management's Responsibility The Designated Account Statement preparation and the fair presentation of this Statement is the responsibility of the Ebola Recovery & Reconstruction Project at the Ministry of Education 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 Designated Account Statement 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 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 project 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 judgment, 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 preparation 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. U M M King's Building 2nd Floor P. 0. Box 3196 Cell: +231-6512549 Broad & Gurley Streets Monrovia, Liberia E-mail: monboco@yahoo.com Monrovia, Liberia Am AUDITOR'S REPORT ON THE EBOLA RECOVERY & RECONSTRUCTION PROJECT (ERRP) GRANT #: TF A1017 FOR THE PERIOD ENDED FEBRUARY 28, 2017 In our opinion, the receipts have been properly accounted for and disbursements were made for the purpose of the project in accordance with the provisions of the International Development Association Grant. * MON0 IT COMPA NY MGI-MONBO AND COMPANY N CERTIFIED PUBLIC ACCOUNTANTS June 20, 2017 I U I I I I U N N 14 3C- MnN AR, rArfi A mV rVrDTw n VTRmr A rer r 1TA WrC N MGI MONBO & COMPANY CERTIFIED PUBLIC ACCOUNTANTS Member Firm of MIDSNELL GROUP INTERNATIONAL INDEPENDENT AUDITORS' REPORT ON THE STATEMENT OF EXPENDITURE FOR THE EBOLA RECOVERY & RECONSTRUCTION PROJECT We have audited the accompanying project Statement of Expenditure of the Ebola Recovery & Reconstruction Project financed by the World Bank Grant (TF A1017) as stated in this report for the period ended February 28, 2017 and obtained all related information required. Management's Responsibility The Statement of Expenditure preparation and the fair presentation of this Statement is the responsibility of the Ebola Recovery & Reconstruction Project at the Ministry of Education 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 of Expenditure 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 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 judgment, including the assessment of the risks of material misstatement of the Statement of Expenditure, 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 of the Statement of Expenditure. In our opinion, the Statement of Expenditure present fairly the view of the financial transactions of the Ebola Recovery & Reconstruction Project for the period ended September 15, 2016 is in accordance with the Cash Basis International Public Sector Accounting Standards (IPSAS), adopted by the Government of Liberia and relevant provision of the Grant Agreement, r King's Building 2nd Floor P. 0. Box 3196 Cell: +231-6512549 Broad & Gurley Streets Monrovia, Liberia E-mail: monboco@yahoo.com Monrovia, Liberia g AUDITOR'S REPORT ON THE EBOLA RECOVERY & RECONSTRUCTION PROJECT (ERRP) GRANT #: TF A1017 FOR THE PERIOD ENDED FEBRUARY 28,2017 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 of the World Bank guidelines. The expenditures are eligible under the International Development Association Grant agreement K a - AW MONBO & COMPANY MGI-MONBO AND COMPANY O CERTIFIED PUBLIC ACCOUNTANTS June 20, 2017 I 16 urT uWAn A rn%IA1y rR n Prm Ir Acrr AwNT I AUDITOR'S REPORT ON THE EBOLA RECOVERY & RECONSTRUCTION PROJECT (ERRP) GRANT #: TF A1017 FOR THE PERIOD ENDED FEBRUARY 28,2017 Ebola Recovery & Reconstruction Project December 1. 2015 - February 28. 2017 Schedule of Expenditure Total Amt. Paid NO. Expenditure (USD) 1 Goods 484,737 2 Consultancy 12,760 3 Non-Consultancy 454,998 252A495 I I I I N U N N N 17 u&M uAhn 2, CAN"A1VV OwTTWIPn wTT Ir A irinITNTcANT N W *,MGI MONBO & COMPANY CERTIFIED PUBLIC ACCOUNTANTS Member Firm of MIDSNELL GROUP INTERNATIONAL June 20, 2017 Project Coordinator Ebola Recovery & Reconstruction Project (ERRP) Ministry of Education Monrovia, Liberia Dear Sir: Ref: Management Letter Clearance As part of our audit, it is our responsibility to report to management our observations and recommendations for improvement. In the audit of the Ebola Recovery & Reconstruction Project (Grant#: TF A1017), matters that could warrant a management letter did not come to our attention as such we did not issue a separate Management Letter report. OBCOMPA NY MGI-MONBO AND COMPANY CERTIFIED PUBLIC ACCOUNTANTS King's Building 2nd Floor P. 0. Box 3196 Cell: +231-6512549 Broad & Gurley Streets Monrovia, Liberia E-mail: monboco@yahoo.com Monrovia, Liberia