AUDITORS' REPORT ON THE FINANCIAL STATEMENTS OF THE IMPROVING ACCESS TO JUSTICE & ENHANCING ACCOUNTABILITY PROJECT IMPLEMENTED BY THE MINISTRY OF JUSTICE FOR THE PERIOD JULY 1. 2015 - MARCH 31 2016 MPFT4CNRn R, CnMP A NV ITPTWTFfW PTlrT tC A CCTTNIT A NTC AUDITORS' REPORT ON THE IMPROVING ACCESS TO JUSTICE & ENHANCING ACCOUNTABILITY PROJECT TF11340 FOR THE NINE MONTHS MARCH 31, 2016 Contents Project Management Team 3 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 Fixed Assets acquired during the period 12 SOEs & Designated Account Reconciliation Statement 13 Report of the Independent Auditors on Designated Account Statement 14 Report of the Independent Auditors on Statement of Expenditure 15-16 Schedule of Expenditure Components 17 Management Letter 18 2 X4_ 4NnnR rXATJ "I71WP IM 4 Pr1T%rAT AUDITORS' REPORT ON THE IMPROVING ACCESS TO JUSTICE & ENHANCING ACCOUNTABILITY PROJECT TF11340 FOR THE NINE MONTHS MARCH 31,2016 PROJECT MANAGEMENT IMPLEMENTATION UNIT: MINISTRY OF JUSTICE PROJECT IMPLEMENTATION UNIT FINANCIAL MANAGEMENT: MINISTRY OF FINANCE & DEVELOPMENT PLANNING PROJECT FINANCIAL MANAGEMENT UNIT PROJECT OFFICIALS: Implementation Unit, 1. Mr. Gobah A. Anderson, Project Coordinator, Ministry of Justice 2. Mr. Daniel B. Tipayson, Project Coordinator, Liberia Anti-Corruption Commission 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 Certified Public Accountants 2nd Floor King's Building Corner Broad & Gurley Streets Monrovia, Liberia 3 MrT] _ MA A 2Mn R, rM A NV VW1TTW1TITi PT TAT I A rnT TNT A ]NT4 U MGI MONBO & COMPANY CERTIFIED PUBLIC ACCOUNTANTS Member Firm of MIDSNELL GROUP INTERNATIONAL Mr. Gobah Anderson Project Coordinator Improving Access to Justice & Enhancing Accountability Project Ministry of Justice Monrovia, Liberia Dear Sir: AUDITORS' REPORT We have audited the accompanying balance sheet of the Improving Access to Justice & Enhancing Accountability Project TF11340 under the International Development Association Grant and the related statements of fund receipts and disbursements, cash flows for the nine months ended March 31, 2016 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 responsibilities of the management of the Project Implementation Unit of Ministry of Justice 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. 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 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 %yerall 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 AUDITORS' REPORT ON THE IMPROVING ACCESS TO JUSTICE & ENHANCING ACCOUNTABILITY PROJECT TF11340 FOR THE NINE MONTHS MARCH 31, 2016 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 improving Access to Justice & Enhancing Accountability Project as of March 31, 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 stipulated in the agreement for the project. /i~k/I'1~4 ~MON60& COMPANY MGI-MONBO & COMPANY CERTIFIED PUBLIC ACCOUNTANTS MONROVIA, LIBERIA May 30, 2016 5 r- TUnAR~C~~, C11PA V P19'VT11T1'IDITRl It' Atd-nTN1TA1V9rQ AUDITORS' REPORT ON THE IMPROVING ACCESS TO JUSTICE & ENHANCING ACCOUNTABILITY PROJECT TF11340 FOR THE NINE MONTHS MARCH 31, 2016 Improving Access to Justice & Enhancing Accountability Project Balance Sheet As at March 31, 2016 ASSETS EMPLOYED 2016 2015 CURRENT ASSETS US$ US$ CASH AND BANK (8,255.14) 155,180.01 TOTAL ASSETS (8,255.14) 155,180.01 FUND BALANCES ACCUMULATED FUNDS BALANCE (8,255.14) 155,180.01 TOTAL FUNDS BALANCE (8,255.14) 155,180.01 PR ECT COORDINATOR UNI ANAR MINISTRY OF JUSTICE MINISTRY OF FINANCE DEVELOPMENT PLANNING NOTES ON PAGES 9-11 FORM AN INTEGRAL PART OF THE FINANCIAL STATEMENTS 6 Mru-lT- MnfNflRn R, Cn1UP A 1VTV rIVT11-Fn PTTRTY Ir A ('nITTNTr A N'M AUDITORS' REPORT ON THE IMPROVING ACCESS TO JUSTICE & ENHANCING ACCOUNTABILITY PROJECT TF11340 FOR THE NINE MONTHS MARCH 31,2016 Improving Access to Justice & Enhancing Accountability Project Fund Receipts and Disbursements Statement For the Nine months ended March 31, 2016 2016 2015 RECEIPTS Notes US$ US$ IDA Credit 5 201,986.59 268,214.47 Total Receipts 201,986.59 268,214.47 DISBURSEMENTS Alternative Dispute Resolution Mechanisms 3 222,278.75 91,930.71 Fostering Integrity & Accountability 4 143,142.99 61,089.22 365,421.74 153,019.93 Excess of Disbursements over Receipts (163,435.15) 115,194.54 Beginning Balance as at July 1, 2015 155,180.01 39,985.47 Accumulated Fund as at March 31, 2016 (8,255.14) 155,180.01 NOTES ON PAGES 9-11 FORM AN INTEGRAL PART OF THE FINANCIAL STATEMENTS 7 X4Ct'- MnINflnn e, CnMiP A NV r1WD'VT1P"l PT TRY TP A f'1'n1T1V.T A Nr4Z AUDITORS' REPORT ON THE IMPROVING ACCESS TO JUSTICE & ENHANCING ACCOUNTABILITY PROJECT TF11340 FOR THE NINE MONTHS MARCH 31,2016 Improving Access to Justice & Enhancing Accountability Project Cash Flows Statement For the Nine months ended March 31, 2016 2016 2015 Operating Activities US$ US$ Credit Received from IDA 201,986.59 268,214.47 Alternative Dispute Resolution Mechanisms (222,278.75) (91,930.71) Fostering Integrity & Accountability (143,142.99) (61,089.22) Net Operating Activities (163,435.15) 115,194.54 Net Increase/Decrease in Cash Balance (163,435.15) 115,194.54 Beginning Balance as at July 1, 2015 155,180.01 39,985.47 Net Cash Balance as at March 31, 2016 (8,255.14) 155,180.01 NOTES ON PAGES 9-11 FORM AN INTEGRAL PART OF THE FINANCIAL STATEMENTS 8 M- X4nNMFn C Pnlk&P A VV 9-VD11V1r1P'D PTI It' A ('CAT TNT A 1VrQ AUDITORS' REPORT ON THE IMPROVING ACCESS TO JUSTICE & ENHANCING ACCOUNTABILITY PROJECT TF11340 FOR THE NINE MONTHS MARCH 31, 2016 NOTES TO THE FINANCIAL STATEMENTS 1. Improving Access to Justice & Enhancing Accountability Project The inability of broad sections of the Liberian population to access dispute resolution services that are responsive, accessible, impartial, and respected has eroded the trust in and legitimacy of the institutions of the state and has contributed to Liberia's legacy of fragility. This Project focuses on (i) to improving access to delivery of justice in Liberia at the local level through studying various mechanisms through which dispute resolution is undertaken in Liberia. Based on the results of the study, the project proposes to (ii) support the implementation of a pilot program of alternative dispute resolution in Liberia. Finally, it will support the training of investigation staff at the Liberia Anti-Corruption Commission to undertake asset verification. The project builds on the successful work undertaken under the LICUS trust funded judicial reforms project which closed in March 2011. The project will be delivered in two components corresponding to the two implementing agencies. Component 1: Alternative dispute resolution mechanisms (a) Scoping, Design, and Pilot Activity to Promote Equitable Dispute through Alternative Dispute Resolution at the Local Level (b) Piloting and Evaluation of Mechanism to Expand Access to justice Component 2: Fostering Integrity and Accountability (a) Training of Staff of ACC on Asset Disclosure and Financial Investigations (b) Support for the National Integrity Survey 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. The financial statements were prepared under 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. 9 Mrll_ M- NRA , SflMPA VV rVWDT11Tr1V"'PTI1 I A riATTTT A NTQ AUDITORS' REPORT ON THE IMPROVING ACCESS TO JUSTICE & ENHANCING ACCOUNTABILITY PROJECT TF11340 FOR THE NINE MONTHS MARCH 31, 2016 b) Fixed Assets The 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 transactions 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) Grant Grant is recongnized on a cash basis and credited to the project account when received. NOTE 3 2016 2015 Alternative Dispute Resolution Mechanisms US$ US$ Scoping, Design and Pilot Activity 5,345.00 Piloting & Evaluation of Mechanisms Project Management 216,933.75 91,930.71 TOTAL 222,278.75 91,930.71 NOTE 4 Fostering Integrity & Accountability Training of Staff 9,490.00 1,400.00 Support for national Integrity Survey 4,872.35 5,350.00 Project Management 128,780.64 54,339.22 TOTAL 143,142.99 61,089.22 10 M4-T MNM 2M RnX MP A NV 0PTTWI'11 VITRT Ti A irirTTNT A NTM AUDITORS' REPORT ON THE IMPROVING ACCESS TO JUSTICE & ENHANCING ACCOUNTABILITY PROJECT TF11340 FOR THE NINE MONTHS MARCH 31,2016 NOTE 5 IDA Credit Receipts 201,986.59 268,214.47 Direct Payment -- Total IDA Credit 201,986.59 268,214.47 11 AUDITORS' REPORT ON THE IMPROVING ACCESS TO JUSTICE & ENHANCING ACCOUNTABILITY PROJECT TF11340 FOR THE NINE MONTHS MARCH 31,2016 Fixed Assets Acquired During the Period Asset Asset Date Value/Cost Identification Asset Acquired Asset Type Asset Description US$ No. Location Condition Equip/Print 22-Apr-13 er HP Laserjet Printer 1,000.00 Equip/001 LACC Good Equip/Print HP Color Laserjet 2-Jul-13 er C1525N 8,875.00 Equip/002 LACC Good 11-Oct-13 Equip/Safe Fireproof Safe 5,400.00 Equip/003 LACC Good Equip/Print 29-Oct-13 er HP Laserjet CP1525N 2,000.00 Equip/004 LACC Good 18-Nov-13 Equip/ICT ICT Materials 15,985.00 Equip/005 LACC Good Equip/Com 5 Dell Inspiron & 3 15-Jan-13 puter Lenovo Laptops 14,600.00 Compu/005 LACC Good Equip/Com HP Probook 4540S & 22-Apr-13 puter Accessories 3,250.00 Compu/006 LACC Good Equip/Com 5 Canon Toner & 1 29-Aug-13 puter Lenovo Laptop 3,420.00 Compu/007 LACC Good Equip/Com Canon Copier & 17-Sep-13 puter Toner 2,585.00 Compu/008 LACC Good Equip/Com 12-Dec-13 puter 36U Equipment Rock 14,318.00 Compu/009 MOJ Good Equip/Com 3 Dell Latitude E5530 8-Nov-13 puter Laptop 3,100.00 Compu/010 LACC Good Equip/Com 2 Dell Optiplex 8-Nov-13 puter Desktop 2,500.00 Compu/011 LACC Good Equip/Com 1 Dell Inspiron 3521 27-Dec-13 puter Laptop & Antivirus 1,550.00 Compu/012 LACC Good 78,583.00 12 X121 A11%Mn R, inA1VPA'V -VPTVr1W1fV"PTTnT It' AirirnTWNT AWrQ AUDITORS' REPORT ON THE IMPROVING ACCESS TO JUSTICE & ENHANCING ACCOUNTABILITY PROJECT TF11340 FOR THE NINE MONTHS MARCH 31, 2016 Designated Account Reconciliation Statement For The Nine Months Ended March 31, 2016 Account Number :04.112-040150-01 Depository Bank First International Bank (Liberia) LTD. Address Clara Town Branch, Monrovia, Liberia IDA Credit Number: TF 11340 LBR Currency :US $ 31-Mar-16 US$ Designated Account Balance at July 1, 2015 155,180.01 Advances/ Replenishment Transfers from IDA: IAJ/MOF/013 14,441.05 IAJ/MOF/014. 25,572.30 IAJ/MOF/015 29,490.22 IAJ/MOF/016 29,919.68 IAJ/MOF/017 84,405.14 IAJ/MOF/017 18,158.20 Total Funds in Designated Account 357,166.60 Less: Disbursement during the period (365,421.74) Balance as at March 31, 2016 (8,255.14) 13 MPT 1AnMTHA R PnMPA TV r1W1DTTrWITF PTTUT TC A rrnTT1%T A 1VT MGI MONBO & COMPANY CERTIFIED PUBLIC ACCOUNTANTS Member Firm of MIDSNELL GROUP INTERNATIONAL INDEPENDENT AUDITORS' REPORT ON THE DESIGNATED ACCOUNT STATEMENT FOR THE IMPROVING ACCESS TO JUSTICE & ENHANCING ACCOUNTABILITY PROJECT TF11340 We have audited the accompanying project Designated Account Statement of the Improving Access to Justice & Enhancing Accountability Project TF11340 financed by the International Development Association Grant as stated in this report for the period ended March 31, 2016. Management's Responsibility The Designated Account Statement preparation and the fair presentation of this Statement is the responsibility of 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 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 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. 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. COMPANY * MGI-MONBO & 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 *UMGI MONBO & COMPANY CERTIFIED PUBLIC ACCOUNTANTS Member Firm of MIDSNELL GROUP INTERNATIONAL INDEPENDENT AUDITORS' REPORT ON THE STATEMENT OF EXPENDITURE FOR THE IMPROVING ACCESS TO JUSTICE & ENHANCING ACCOUNTABILITY PROJECT TF11340 We have audited the accompanying project Statement of Expenditure of the improving Access to Justice & Enhancing Accountability Project TF11340 financed by the International Development Association Grant as stated in this report for the period ended March 31, 2016. Management's Responsibility The Statement of Expenditure preparation and the fair presentation, of this Statement is the responsibility of 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 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 judgement, 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 Statdement of Expenditure present fairly the view of the financial transactions of the Improving Access to Justice & Enhancing Accountability Project for the period ended March 31, 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. King's Building 2nd Floor P. 0. Box 3196 Cell: +231-6512549 Broad & Gurley Streets Monrovia, Liberia E-mail: monboco@yahoo.com Monrovia, Liberia AUDITORS' REPORT ON THE IMPROVING ACCESS TO JUSTICE & ENHANCING ACCOUNTABILITY PROJECT TF11340 FOR THE NINE MONTHS MARCH 31, 2016 Additionaly, 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. COMPANY MGI-MONBO & COMPANY C, CERTIFIED PUBLIC ACCOUNTANTS >!NTts> MONROVIA, LIBERIA MAY 30, 2016 16 MI M nMA R, CnOMPA1VV 4-VWTT I PTT1V% T ArnTTNTANT AUDITORS' REPORT ON THE IMPROVING ACCESS TO JUSTICE & ENHANCING ACCOUNTABIUTY PROJECT TF11340 FOR THE NINE MONTHS MARCH 31, 2016 Improving Access to Justice & Enhancing Accountability Project July 2015 - March 2016 Schedule of Expenditure Component Total Amt. Paid NO. Expenditure AtPd (USD) Component 1 Alternative Dispute Resolutions Mechanisms 222,278.75 2 Fostering Integrity & Accountability 143,142.99 365,421.74 17 MC rANA 2, CnD A NV CWDTT0r1IV PTTI T- A CdnT TNT A 1NT * MGI MONBO & COMPANY CERTIFIED PUBLIC ACCOUNTANTS Member Firm of MIDSNELL GROUP INTERNATIONAL Mr. Gobah Anderson Project Coordinator Improving Access to Justice & Enhancing Accountability Project Ministry of Justice Monrovia, Liberia Dear Sir: Ref: Manaiement 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 Improving Access to Justice & Enhancing Accountability Project TF11340, significant matters that could warrant management letter did not come to our attention as such we did not issue a separate Management Letter. MONBO & COMPANY MGI-Monbo & Company C: Certified Public Accountants Monrovia, Liberia May 30,2016 King's Building 2nd Floor P. 0. Box 3196 Cell: +231-6512549 Broad & Gurley Streets Monrovia, Liberia E-mail: monboco@yahoo.com Monrovia, Liberia