THE FEDERAL GOVERNMENT OF SOMALIA SFF-LD FINANCIAL STATEMENTS FOR THE PERIOD FROM JANUARY 1" TO DECEMBER 31, 2016 SPECIAL FINANCING FACILITY FOR LOCAL DEVELOPMENT P156257, TFOA1715 ÿþTable of Contents 1. IN T R O D U C T IO N .............. ............................ ....................................... .. . .. .............. 3 1.2 1.1 PROJECT OBJECTIVES ............................. ........ ........... 3 1.3 1,2 PROJECT SCOPE.. ....................................................... ...3 2. PROJECT INFORMATION ........... .................................... 4 2.1 KEY PROJECT INFORMATION............................................................... 4 2.2 PROJECT DESCRIPTION...................... ...................................... 4 2.3 IMPLEMENTATION STATUS ........................................ ...5 2.4 ROLES AND RESPONSIBILITIES: ..................... .............. ...5 2.5 FU N D ING SU M M A R Y .............................................................................. 6 3. STATEMENT OF PROJECT MANAGEMENT'S RESPONSIBILITIES .................... 7 4. REPORT OF THE AUDITOR GENERAL ...................................... 8 5 . F IN A N C IA L S T A T E M E N T S ................................................................ ... .. ................ 10 5.1 STATEMENT OF RECEIPTS AND PAYMENTS......................... ....10 5.2 STATEMENT OF FINANCIAL POSITION................................. ........11 6. STATEMENT OF BUDGET COMPARISON WITH ACTUALS ......................12 7. SOURCES AND USES 0F FUNDS STATEETB U - COMPONENTS (ACTIITES1 8. NOTES TO THE FINANCIAL STATEMENTS ........................ .......... 15 8 .1 G EN E R A L IN FO R M A T IO N .................................................... ..................... . ......... .....1 5 8 .2 BASIS O F PREPA RATIO N ............................................ .. ... ... ,............................ 15 8.3 SIG NIFICANT A CCO UNTING PO LICIES ....................,, .............................. ..................15 8 .4 E X C H A N G E R A T E S ....................... .......... ....................... ..........................................1 6 2 1. INTRODUCTION This is a detailed financial rsport that present the performance status of Special Financing Facility for local development (SFF-LD) for the period of October 2016 to December 2016 for the Fourth quarter of year 2016.The project period is the Fourth quarter through preparation and launching reached progress for this period. The contents of the report are actual financial results of SFF-LD Project effective from the commencement date of the project to the end of this reporting period of 31 December 2016. 1.2 1.1 PROJECT OBJECTIVES SFF-LD is expected to contribute to the broader stabilization enshrined in the Somali compact, but to be specific the following was identified as the rationale for the program; 1. Building legitimate public sector institutions by using government systems and demonstrating they can work. 11. Helping define the division of roles, responsibilities and capacities between the central government and the states in the area of development financing 1I. Supports recovery efforts for vulnerable population in most war -affected areas 1.3 1.2 PROJECT SCOPE The Project will support the rehabilitation and reconstruction of damaged and deteriorated community infrastructure, such as roads, drainage systems, and public buildings, as well as the (re)construction of markets. The identification of subprojects is achieved through a rigorous consultative process with community-based stakeholders, who decide on the subprojects to be financed for a specific community. This approach is expected to strengthen cohesion and cooperation among tile community members, create a stronger sense of shared ownership, and joint responsibility for the repair and maintenance of assets. Finally, the implementation of Government-funded projects through federal and local agencies would increase citizen-government trust, and perceptions of Government reach, competence and accountability. 3 2. PROJECT INFORMATION 2.1 Key Project Information Project Name: Special Financing Facility For Local Development Project ID: P156257 IDA CreditlGrant No.: TF0A1715 Implementing Agency: Somalia Ministry of Finance- Special Financing Facility for Local Development (SFF-LD) Effectiveness Date: 25-Jan-2016 Closing Date : For this year 31 December, 2016 Crodit/Grant Amount: US$ 6.00 Million Program Duration for this year 365 Days Closure Period End Date: 31-Dec-2017 Disbursed Amount: US$ 570,475.4 2.2 PROJECT DESCRIPTION a. Project Components 1. Three components are proposed for the SFF-LD for a duration of 24 months: Component 1: Small-Scale Infrastructure (US$4.2m): This component will finance small-scale local development activities in the (pre-1991) regions of the FGS. The Grant amounts to each region will continue the previous approach of distribution following an 'equal shares' basis of $700-750,000 per region. The grants will cover design and supervision costs and the costs of implementation of the works or activities. Following a process of consultation with the regions, projects will be identified and agreed, based upon a positive list of potential sub-projects. The positive list will be reviewed on a rolling basis every six months. 2. Eligible sub-projects would include: (i) Buildings: Construction or repair of administrative and community buildings (ii) Sanitation: Provision or repair of public sanitation facilities in primary health care or education facilities where water supply is already available. (iii) Roads: Rehabilitation of local roads (using labor intensive methods only), construction or rehabilitation of foot paths, culverts and bridges, including street lights. (iv) Health: Construction, repair or extension of primary health care center only in cases where a health care worker is already present. (v) Education: Construction, repair or extension of existing primary schools where a teacher is already present. Purchase of furniture or equipment for existing primary schools. (vi) Markets: Construction or repair of public markets. (vii) Livestock: Construction or rehabilitation of livestock dips (viii) Energy: Small-scale, off-grid renewable energy projects (e.g street lights, energy for public buildings, markets, etc.) 3. Component 2: Program Operations, Capacity Building, and Contingencies(US$1.8m): This component will finance costs associated with overall project implementation and additional capacity building activities that will support the strengthening of the Project Implementation Unit (PIU) and proposed new name of the TIU) and the new emerging Interim Regional Administrations. This will have two subcomponents: 4 (i) PIU Operating Costs: will cover the costs of PIU staff for a period of 2 years and day-to-day operations, including the salaries and allowances of the PlU members, consultancies required for technical assistance, Project Officers at the sub-national level and associated costs with the running of the PIU including, inter alia, office running costs, program related travel expenses, meetings costs and project assessment and monitoring costs. An annual work plan will be agreed between the PIU and the Bank to establish the parameters of the costs and activities to be financed under this component. (ii) Capacity Building: Technical assistance and capacity building would including workshops, training and learning-by-doing and would focus on practical aspects of capital investment project management. Targeted audiences would be FGS Ministries as well as IRAs. Capacity building would include the areas of: M&E, communications and community outreach, and environmental and social safeguards. The capacity building would include both central and regional stakeholders and would include both hands-on assistance as well as workshops aimed at building capacity in these areas. 4. Component 3: Emergency Contingency Component (US$0): This component would allow for Project funds to be used to address emergency works or activities resulting from potential natural disasters. Somalia is routinely impacted by natural disasters including drought and flooding. If such conditions arise to a critical level (as determined by the FGS) during the implementation of the Project, funds could potentially be allocated for emergency works or activities resulting from such natural disasters. Sub-projects or activities supported under this component would be approved by the Steering Committee. This component would be similar to contingent components routinely included in IDA funded the Project Operations Manual will outline the specific 'emergency eligibility' criteria for triggering this component. 2.3 IMPLEMENTATION STATUS PIU prepared a progress report for the period ending December 31, 2016, Please refer to the progress report accompanied here with the financial report for the same period. 2.4 ROLES AND RESPONSIBILITIES: The following are the key project implantation team that were concerned with the project activities during the period. Name Role Position Contact Information Ahmed Yusuf Mumin Finance Accountant booseeY05Chotmail.compIz (siraaji) Management General change this into qmail Amina Sheikh Osman Finance Director General aaminasheekh@hotmail.com Management Ministry of Finance Abdinasir Ahmed Financial Head of EAFS Abdinasira70Rmail.com Consulting Consultants Saleiman S Umar Financial Accounting Section dalkasom@,grailcom Consultant Lead for Consultants Ali Haji Aden Project Project Coordinator alihaji@sff-ld-mof.so Coordinator Suad Osman Egal Deputy Project Deputy project suadegal@sff-ld-mofso Coordinator Coordinator Ahmed Abdi Adam (Iraad) Budgeting Director of Budget iradabdipihotmail.coni Department Mohamud Abdulkadir Arale Finance Director of External afkaxaajihotmail.com Management Assistance Fiduciary Section (EAFS) Mowliid Mohamed Ali Accountant Head of EAFS dhoofcade@hotmail.com Accounts Section 5 Name Role Position Contact Information Abdinasir Adan Mohamed Financial Financial aldinasir@sfld-mof.so Consulting Management Specialist Abdullahi Abdinur Hamud Engineer Engineer sayouniayahoo cor Abddinur Ali Farah Engineer Engineer Lrin.a ubnus -ff-ld mof.so Amir Mohamed Siraad M&E M&E Specialist anrsff-ld-mof.so Najib Abdi Communication Communication ri ff-Idmofso Specialist Habiba Ali Hussein Procurement Procurement habi s rnof so Specialist Fatima Abdirahman Ahmed Project Officer Project Officer fi 11w'sff-Id nlofso 2.5 FUNDING SUMMARY The Project implementation for this year is 24 months from 25 January 2016 to 31 December 2017, with an approved amount of US$ 6,000,000.00 Amount Undrawn received up to Balance up to Source of funds Donor Commitment December 31, December 31, 2016 2016 US$ US$ US$ (A) (B) (A)-(B) Somalia Muiti-Partner Fund 6,000,000.00 637,291.32 5,362,708.68 (MPF) - World Bank Total 6,000,000.00 637,291.32 5,362,708.68 6 3. STATEMENT OF PROJECT MANAGEMENT'S RESPONSIBILITIES The Project Management is responsible to ascertain that the progress report and financial statements of the Project for the period ended December 31, 2016 are prepared, in all material respects, in accordance with the basis of preparation and accounting policies set out in Note 3 to the financial statements. In preparing these financial statements, the Project Management is required to select suitable accounting policies and then apply them consistently in conformity with Cash Basis International Public Sector Accounting Standard (Cash Basis IPSAS) and the requirements of Financial and Accounting procedure of the State, 1961 as amended, The Project Management is responsible for ensuring that proper accounting records are kept which enable the financial statements to be prepared in compliance with the basis of preparation and accounting policies set out in Note 3 to the financial statements as well as in accordance with the terms of the financing agreement for the State and Peace Building Fund Grant Agreement Number TFOA1716 between the Federal Republic of Somalia and the International Development Association, The Project Management is also responsible for safeguarding the assets of the Project, and for taking reasonable steps for the prevention and detection of fraud and other irregularities. The Project Management assumes the responsibility to provide, and has provided, the Auditor General with all accounting records, supporting and other documents, minutes, and any other pertinent information and explanations, either orally or in writing, necessary for the audit. Signed on behalf of the Project Management: Ahmed Yusuf Muumin, Accountant General 7 4. REPORT OF THE AUDITOR GENERAL To: The Project Management Opinion We have audited the accompanying financial statements of the project titled "Special Financing Facility for Local Development P156257, TF0AI715 - FGS funded by the International Development Association (IDA)" which comprise the statement of receipts and payments for the year then ended and notes thereto "the financial Statements" as set bout on pages 10 to 18 The financial statements have been prepared by the project management in accordance with the basis of accounting described in the note 8 to the financial statements. In our opinion, the accompanying financial statements presents fairly the cash receipts and payments of the project during the year ended 31 December 2016 in accordance with the cash basis of the International Federation of Accountants and in accordance with the accounting policies described in note 8 to the financial statements and comply with the related grant agreement. Basis for Opinion We conducted our audit in accordance with International Standards on Auditing (ISAs). 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 the International Development Association (IDA) and an independent constitutional body established by the Federal Government of Somalia (FGS) 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 Somalia, and we have fulfilled our 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. Emphasis of Matter - Basis of Accounting and Restriction on Distribution and Use Without modifying our opinion, we draw your attention to Note 3 of this Report, which describes the basis for accounting. The Financial Report is prepared to assist the Federal Government of Somalia (FGS) comply with the specific Financial Reporting requirements of the International Development Association (IDA). As a result, the Financial Report may not be suitable for any other purpose. Our report is intended solely for the information, distribution and use of the International Development Association (IDA) and the Federal Government of Somalia (FGS). Other Information The management is responsible for the other information. Other information comprises the information included in the Annual Report, but does not include the financial statements and our auditor's report thereon. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we have performed on the other information, we conclude that there is a material misstatement of this other information of this other information: we are required to report that fact. We have nothing to report in this regard. Responsibilities of the Management and those charged with governance for the Financial Statements The management is responsible for the preparation and fair presentation of these financial statements in accordance with the financial reporting provisions of Schedule 2 of the Grant agreement between International Development Association (IDA) and the Federal Government of Somalia (FGS) and for such internal control as the management committee is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. 8 In preparing the financial statements, the management is responsible for assessing the project's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the management intends to liquidate the project, or to cease operations, or has no realistic alternative but to do so. Those charged with governance are responsible for overseeing the Project Implementation Unit'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 in the aggregate, 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 judgement and maintain professional skepticism throughout the audit. We also: o 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. o Obtain an understanding of internal control 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. o Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the members. o Conclude on the appropriateness of the managements' 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 project'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 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 events in a manner that achieves fair 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. Mr Ali Abukar Ahmed . c Acting Audit r Gener I Villa Somalia Federal Gov rnm nf Somalia (FGS) Mogadishu Date .<.. ........ 5. FINANCIAL STATEMENTS 5.1 STATEMENT OF RECEIPTS AND PAYMENTS Note Prvios Curen FYCurrent FY - rCurrent FY Cu t FY Cumulative Notes Previous -rvos Current Current FY- so e year 2015 QPre Reporting Cumulative as,o0De Q r Quarter 31,2016 RECEIPTS Somalia Multi- 7 0.00 360,902.23 276,389.09 637,291.32 637,291,32 Partner Fund TOTAL RECEIPTS 0.00 360,902.23 276,389.09 637,291.32 637,291.32 PAYMENTS Other Professional 10 287,733.65 190,762.65 478,496.30 478,496.30 fees for PIU 0.00 Consultants Other Professional 29,663.75 15,175.35 44,839.10 44,839.10 Services- 0.00 Consultancy Firm Use of goods and 11 0.00 6,673.00 9,780.00 16,453.00 16,453.00 services Travel Expense 0.00 5,090.00 15,605.63 20,695.63 20,695.63 Bank Charges 0.00 5,413.53 4,145.84 9,559.37 9,559.37 Local Workshop 432.00 432.00 432,00 Capital expenditure 12 -- - - - TOTAL 0.00 334,573.93 235,901.47 570,475.40 570,475.40 PAYMENTS Refund CASH IN D(A) 13 0.00 26,328.30 40,487.62 66,815.92 66,815.92 LIABILITIES 14 - - - - TOTAL - - - - - LIABILITIES Fund balance at 15 0.00 26,328.30 66,815.92 66,815.92 66,815.92 end of this period .. . . . . . . . . . ......... Ahmed Yusuf Muunin, Accountant General 10 5.2 STATEMENT OF FINANCIAL POSITION Notes Previous Current FY Current FY - Current FY- Cumulative year 2015 - Previous Current Cumulative as of Dec Quarter Reporting 31,2016 quarter ASSETS Cash and cash 13 0.00 26,328.30 40,487.62 66,815.92 66,815.92 equivalents TOTAL ASSETS 0.00 26,328.30 40,487.62 66,815.92 66,815,92 LIABILITIES Liabilities 14 TOTAL LIABILITIES - NET BALANCE REPRESENTED - - - - - BY: FUND BALANCE 15 0.00 26,328.30 40,487.62 66,815.92 66,815.92 Ahmed Yusuf Muunin, Accountant General 11 6. STATEMENT OF BUDGET COMPARISON WITH ACTUALS FINAL ACTUAL OUT ACTUAL BUDGET PERCENTAGE BUDGET TURN US$ OUTTURN VARIANCE VARIANCE NOTE US$ 2015 US$ 2016 US$ US$ Multilateral Sources 7 6,000,000.00 0.00 637,291.32 5,362,708.68 89.38% Total Receipt 6,000,000.00 0.00 637,291.32 5,639,097.77 89.38% Expenses Firm consultant for detailed design and engineering Supervision 250,000.00 0.00 44,839.10 205,160.90 82.06% Small-Scale Infrastructure 3,500,000.00 0.00 3,500,000.00 0.00% Operating Costs 11 1,514,780.00 0.00 525,636.30 1,209,869.82 79.87% Capacity Building 600,000,00 0.00 600,000.00 100% Contingency Emergency Component 135,220.00 0.00 135,220.00 100% Total Expenditure 6,000,000.00 0.00 570,475.40 5,429,524.60 90.49% A) Budget utilization report by project components BUDGET UTILIZATION BY PROJECT COMPONENTS Project Annual Current FY - Current FY- Current FY- Budget Components Budget Previous Current Reporting Cumulative Balance (A) Quarters (B) Quarter (C) (D)=(B)+(C) (E)=(A)-(D) Small-Scale 4,200,000.00 29,663.75 15,175.35 44,839.10 4,155,160.90 Infrastructure Program Operations, 1,800,000.00 304,910.18 220,726.12 525,636.30 1,274,363.70 Capacity Building and Contingencies B) Budget utilization report by expenditure classification BUDGET UTILIZATION BY PROJECT EXPENDITURE CLASSIFICATION Project Annual Current FY - Current FY- Current FY- Budget Expenditure Budget Previous Current Reporting Cumulative Balance (Object Code) (A) Quarters (B) Quarter (C) (D)=(B)+(C) (E)=(A)-(C) 2215 - Office 26,500.00 6,673.00 9,780.00 16,453.00 9,957.00 materials and other consLImables 2216- Travel 28,000.00 5,090.00 15,605.63 20,695.63 7,304.37 expenses 2222- Training 22,925.00 432.00 432.00 22,583.00 expenses 2231- Consulting 560,000.00 317,397.40 205,938.00 523,335.40 36,664.60 and professional 12 BUDGET UTILIZATION BY PROJECT EXPENDITURE CLASSIFICATION Project Annual Current FY - Current FY- Current FY- Budget Expenditure Budget Previous Current Reporting Cumulative Balance (Object Code) (A) Quarters (B) Quarter (C) (D)=(B)+(C) (E)=(A)-(C) fees 2241- Consulting 55,575.00 5,413.53 4,145.84 9,559.37 46,015.63 and professional fees 2314- Other fixed 3,012,000.00 0.00 0.00 0.00 3,012,000.00 assets 13 7. SOURCES AND USES OF FUNDS STATEMENT BY SUB -COMPONENTS (ACTIVITIES) Cumulative as Previous Current FY - Current FY - Current FY- fc as year 2015 Previous Quarter Current Reporting Cumulative 21 (A) (D) (A) (B) Quarter (C) (B)+ (C)=(D) 2016 (A)+ (D)= Somalia Multi-Partner Fund (MPF)) World 0.00 360.902.23 276,389.09 637,291.32 637,291.32 Bank Total Sources of 0.00 360.902.23 276,389.09 Funds (A) 637,291.32 637,291.32 Expenditure By Sub - Component (A ctivities - -- -- ------ ------- Project management adoermatnaleCsts 0.00 334,573.93 235,901.47 570,475.40 570,475.40 and Operational Costs Total Expenditure By 0.00 334,573.93 235,901.47 570,475.40 570,475.40 Sub - Comp. B Closing Cash balance Fund Source (A - B) Fund balance at 0.00 26,328.30 40,487.62 66,815.92 66,815.92 beginning of the eriod Total Closing Cash Balance as of 31 Dec 0.00 26,328.30 40,487.62 66,815.92 66,815.92 2016 14 8. NOTES TO THE FINANCIAL STATEMENTS 8.1 General Information The principal address of the reporting entity is: Ministry of Finance Villa Somalia Mogadishu Somalia 8.2 Basis of preparation These special purpose financial statements have been prepared in accordance with IPSAS Financial Reporting under The Cash Basis of Accounting issued by Public Sector Committee of the International Federation of Accountants (IFAC-PSC). They are presented in United States Dollar (US$). The measurement basis used is the historical cost basis except where otherwise stated in the accounting policies below. 8.3 Significant Accounting Policies The principal accounting policies adopted in the preparation of these financial statements are set out below. These policies have been consistently applied during year, unless otheiwise stated (a) Reporting entity The financial statements are for the Special financing facility for local development- SFF-LD (P156257, TFOA1715) implemented by the Federal Government of Somalia (FGS) through The Ministry of Finance. The transactions to be captured are only those that are controlled by the reporting entity and those controlled by third parties for and on behalf of the reporting entity. For purposes of these financial statements there were no third party transactions reported in respect of the project activities. (b) Reporting currency and translation of foreign currencies The functional and reporting currency is the United States Dollar (US$), which is accepted as legal tender in the Federal Republic of Somalia. Items included in the financial statements are measured in the currency of the primary economic environment in which the entity operates. (c) Reporting Period The reporting period for these financial statements is from Jan 25, 2016 to 31, December 2016. (d) Payments by Third Parties During the year ended, the project did not benefit from any goods and services as reported to have been purchased on its behalf as a result of cash payments made by third parties during the Period. (e) Receipts Receipts represent cash received by Special financing facility for local development- SFF-LD (P156257, TF0A1715) during the period and comprise external assistance from cash disbursements received under Somalia Multi-Partner Fund, The cash disbursements have been recognized as revenue and included in the financial statements when payments are made from the project Designated Accounts (DA) which were operated as a holding accounts to the main Treasury Single Account (TSA). The closing balance on the Designated Accounts was also included as revenue receipts from the World Bank. (f) Expenses Expenditure represents outlays of cash made by the project or other agencies for and on behalf of the project. The expenses comprise Operational expenditure and they are included in the financial statements when cash is paid out. (g) Capital items/Non-current assets During the period of quarter 4 of 2016, there are no capital items that have purchased at project money. 15 (1) Foreign currency transactions Foreign currency transactions denominated in foreign currencies would be converted into United States Dollars (US$) at the exchange rate ruling on the date of the transaction; realized gains and losses resulting from these transactions would be recognized in the Statement of Receipts and Payments. Monetary assets and liabilities denominated in foreign currency at the year-end would be translated at the closing rate of exchange with the resulting exchange gains/(losses) dealt with through the Statement of Receipts and Payments. However, for purposes of this accounting policy, there was no foreign currency transactions translated at the reporting date. (i) Cash and cash equivalents For the purposes of the statement of cash flows, cash and cash equivalents comprise of deposits held at Central Bank of Somalia. (j) Employee benefits Employee benefits include salaries, allowances and other related-employment costs and these have been recognized in the financial statements only when actual payments are made. (k) Authorization (late The financial statements were authorized for publication by the Accountant General on my 2, 2017 8.4 Exchange rates All monetary amounts in the financial statements are expressed in United States Dollars (US$). The estimated US$ closing rates for major currencies were: From 25 Jan 2016 to 31 December 2016 Somali Shilling 22,500 Great Britain Pound 0.641584 Euro 0.825748 9. Somalia Multi-Partner Fund The grants received from World Bank under the Somalia Multi-Partner Fund are not repayable in future. The amounts in the Statement of Receipts and Payments are only recognized when received by and are under the control of the FGS and attributed to the project. The amount of external assistance received for the project in 2016 is as detailed below: Multilateral Current FY - Current Sources Previous Current FY Current FY- Cumulative as year 2015 - Previous Cumulative of Dec 31, 2016 (A) Quarter (B) n (B)+(C)= (A)+(D)= (E) Quarter (C) Somalia Multi- Partner Fund - 0.00 360,902..23 276,389.09 637,291.32 637,291.32 World Bank Total Grant 0.00 360,902.23 637,291.32 637,291.32 Received 276,389.09 16 10. Compensation of Consultants Principally comprises of: Previous Current FY Current FY - Current FY- Cumulative year 2015 - Previous Current Cumulative 31, 2016 (A) Quarter (B3) Reporting3126 Quarter (C) (B)+(C)= (D) (A)+(D)= (E) Other Professional 0.00 287,733.65 190,762.65 478,496.30 478,496.30 fees for PlU consultants Total 0.00 287,733.65 190,762.65 478,496.30 478,496.30 compensation of employees cost as of 31 Dec 2016 11. Use of goods and services Previous Current FY Current FY - Current FY- Cumulative as year2015 - Previous Current Cumulative of Dec 31, 2016 (A) Quarter (B) Reporting Quarter (C) (B)+(C)= (D) (A)+(D)= (E) Other office materials 0.00 3,000.00 6,500.00 950000 9,500.00 and consumables Stationary 0.00 3,423.00 1,119.00 4,542.00 4,542.00 News Paper 0.00 250.00 500.00 750.00 750.00 Cleaning materials 0.00 0.00 1,161.00 1,161.00 1,161.00 and Services Advertising and 0.00 0.00 500.00 500.00 500.00 publications Total Use of goods 0.00 6,673.00 9,780.00 16,453.00 16,453.00 and services as of 31 Dec 2017 12. Capital expenditure - Capital expenditure - - 13. Cash and cash equivalents Cash comprise of demand deposits. Demand deposits consists of interim period-end project bank balance held at Central Bank of Somalia (CBS) and the project bank accounts are part of Treasury Single Account (TSA) as detailed in the below: Dec 31, 2016 US Project Designated Account No. 1126 DA 66,815.92 Total Cash Available as of December 31 2016 66,815.92 17 14. Liabilities There are no liabilities for the period ended December 31, 2016. 15. Fund available as of December 30, 2016 66,816.92 Total liabilities 0.00 FI und balance/surplus fili 16. Designated Accounts (DA) Statement Reconciliation Opening balances as at 07 March 2016 0.00 Add: World Bank advances into the DA during the period 637,291.32 Interest earned (if credited into DA) - Subtotal 637,291.32 Less: Amount of eligible expenditures paid during the period 560,916.03 Refund to World Bank from the DA during the period Service charges (if debited into DA) 9,559.37 Subtotal 570,475.40 Add refund 0.00 Closing balance as at December 31, 2016 (Note 15) 66,815.92 18