World Bank Funded Project (Emergency Monrovia Urban Sanitation Project) Implemented by the Government of Liberia through "Project Financial Management Unit in the Ministry of Finance and Development Planning" Report and Financial Statements For the Eighteen (18) Months ended December 31, 2016 KI CONTENT: Page: 1. Independent Auditor's Report 3. Balance Sheet 4. Statement of Receipts and Payments 5. Statement of Comprehensive Performance and accumulated fund 6. Statement of Cash Flows 7. Notes to the Financial Statements 11. Independent Auditor's Report on the Statement of Expenditures 13. Statement of Expenditures 14. Notes to the Statement of Expenditures 16. Independent Auditor's Report on the Special Account Statement 18. Designated Account reconciliation 24. Management Letter Clearance World Bank-pfrnu/emus-2016 LK- M1 PKF Liberia Accountants & business advisers Independent Auditor's Report Project Steering Committee and the World Bank Project Financial Management Unit (PFMU) Ministry of Finance and Development Planning Republic of Liberia We have audited the balance sheet for the "Trust Fund Grant No.: IDA 49080, TF A1481, TF17803 and GoL-LBR with Project ID: P146966 and P115664 "Emergency Monrovia Urban Sanitation Project (EMUS)" as at December 31, 2016 and the related statements of receipts and payments, statement of comprehensive performance, accumulated fund, and cash flows for the Eighteen (18) months ended December 31, 2016. Management's Responsibility for the financial statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with International Public Sector Accounting Standards (IPSAS) and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. Our audit was conducted in accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatements of the financial statements, 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 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 the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Tel +231-886-510 562 231-886-510 603 .231-886 835-784 Email: pkfliberia@pkf.com.Ir - pkfliberia@yahoo.com PKF Liberia *Randall Street* Lara Building - Fourth Floor Suite 41 P.O. Box 10-3635 -1000 Monrovia 10 Liberia contact Person: Nim'ne E. Mombo Sr., Managing Partner & Prof. D. Ansu Sonii Sr., Partner PKF-Liberia is a member firm of the PKF International Limited network of legally independent firms and does not accept any responsibility or liability for the actions or inactions on the part of any other individual member firm or firms 2 Opinion In our opinion, the financial statements referred to above present fairly in all material respects, the financial position of the "Trust Fund Grant No.: IDA 49080, TF A1481, TF17803 and GoL-LBR with Project ID: P146966 and P115664 "Emergency Monrovia Urban Sanitation Project (EMUS)" as at December 31, 2016 and its operations for the year then ended as well as for the revenue collected and expenditures made by the Project during the eighteen (18) months in accordance with the International Public Sector Accounting Standards (IPSAS). PKF-Libeia Accountants & 'I business advisors llonrovia .2 3 Ministry of Finance and Development Planning Trust Fund Grant No.: IDA 49080,TF A1481, TF17803, and GoL-LBR Project ID: P115664, P1 46966 Emergency Monrovia Urban Sanitation (EMUS) Project Balance sheet As at December 31, 2016 2016 2015 Note US$ US$ Assets Cash in bank 3 52,651 222,912 Long-term assets 4 1,525,306 1,395,087 Total assets 1,577,957 1,617,999 Liabilities Audit fee payable 10,000 7,000 10,000 7,000 Fund balance Accumulcted fund 1,567,957 1,610,999 Total liabilities & fund balance 1,577,957 1,617,999 71 The notes on pages 7 to 10 form an integral part of these financial statements. Roderick G. Smith Dr. Christopher K. Sokpor Project Manager Unit Manager EMUS PFMU Monrovia City Corporation Ministry of Finance & Development Planning IL Ministry of Finance and Development Planning Trust Fund Grant No.: IDA 49080,TF Al 481, TF17803, and GoL-LBR Project ID: P115664, P146966 Emergency Monrovia Urban Sanitation (EMUS) Project Statement of Receipts and Payments For the eighteen (18) months ended December 31, 2016 Cumulative July 1, to Cumulative to December December3 to June 30, 31, 2016 1, 2016 2015 US$ US$ US$ Receipts: Grants Received 36,298,770 6,902,440 29,396,330 Sale of bid document 61,015 - 61,015 36,359,785 6,902,440 29,457,345 Payments: Total expenditures for the period (per statement of eopenditures page 13) 36,324,134 7,082,701 29,241,433 Add:Prior Year Adjustment - - 7,000 Adjusted expenditures for the period 36,324,134 7,082,701 29,248,433 [ I1 Add:Audit fee paid 25,000 - 25,000 Less: accrued audit fee (42,000) (10,000) (32,000) Total payments 36,307,134 7,072,701 29,241,433 Excess of receipts over payments 52,651 (170,261) 215,912 The notes on pages 7 to 10 form an integral part of these financial statements. E L E71 Ministry of Finance and Development Planning Trust Fund Grant No.: IDA 49080,TF A1481, TF17803, and GoL-LBR Project ID: P115664, P146966 "Emergency Monrovia Urban Sanitation Project (EMUS)" Statement of comprehensive performance and accumulated fund For the eighteen (18) months ended December 31, 2016 2016 2015 Note US$ US$ Income: Grant received 6,902,440 5,266,912 Sale of bid document - - Total income 6,902,440 5,266,912 Expenditure: Civil works 1 4,703,961 4,366,411 Consultant services 3 1,819,932 654,915 Training and workshops 4 - - Operating cost 5 428,589 382,353 Total expenditure 6,952,482 5,403,679 Net operating results (50,042) (136,767) Accumulated fund Beginning balance 1,610,999 1,747,766 Add: Prior Year Adjustment 7,000 - Adjusted Beginning balance 1,617,999 1,747,766 Net operating results (50,042) (136,767 Balance at December 31, 2016 1,567,957 1,610,999 The notes on pages 7 to 10 form an integral part of these financial statements. Ministry of Finance and Development Planning Trust Fund Grant No.: IDA 49080,TF A1481, TF17803, and GoL-LBR Project ID: P115664, P146966 "Emergency Monrovia Urban Sanitation (EMUS) Project" Statement of cash flows For the eighteen (18) months ended December 31, 2016 2016 2015 US$ US$ Operating activities: Net operating results (page 5) (50,042) (136,767) Adjustments to reconcile net operating results to net cash flows from operating activities: Prior Year Adjustment 7,000 - Changes in operating assets and liabilities: Advance Payment to Consultants - Audit fee payable 3,000 - Net cash flows from operating activities (40,042) (136,767) Investjng activities: Purchase of long-term assets (130,219) (54,481 Net cash used in investing activities (130,219) (54,481) Net decrease in cash and cash equivalents (170,261) (191,248) Cash and cash equivalents at the beginning of the period 222,912 414,160 Cash and cash equivalents at the end of the period 52,651 222,912 The notes on pages 7 to 10 form an integral part of these financial statements. A 7 Trust Fund Grant No.: IDA 49080, TF A1481, TF17803 and GoL-LBR Project ID: P115664, P146966 "Emergency Monrovia Urban Sanitation Project (EMUS)" Notes to the Financial Statements For the eighteen (18) months ended December 31, 2016 1. General background of PFMU 1.1 The Government of Liberia has finalized arrangement with various institutional donors to finance a program of rehabilitation and reconstruction of the vital sectors of the economy. The Government has established a Project Financial Management Unit (PFMU) that is responsible for providing centralized accounting, disbursement and reporting services for donor funded projects and programs that are being and shall be executed by the Government of Liberia. The responsibility for the establishment and maintenance of a financial management system for the projects and programs rest with the Government of Liberia through the Project Financial Management Unit (PFMU) in the Ministry of Finance and Development Planning and implementing units of the sector ministries implementing the project. 1.2 The Project Financial Management Unit (PFMU) has been established in the Ministry of Finance and Development Planning with appropriate financial management staff to ensure that: (a) all aspects of financial management required under the projects/programs are carried out; (b) payments are processed expeditiously on behalf of the implementing units; (c) adequate internal controls are in place; (d) quarterly financial monitoring reports are prepared on a timely basis; (e) the financial information required by the implementing units are prepared on a regular basis and on time; (f) the annual financial statements are prepared on a timely basis; (g) and the annual external audit is completed on time and audit findings and recommendations are implemented expeditiously. Project sponsorship of EMUS Project 1.3 The Emergency Monrovia Urban Sanitation Project is funded 100% by the World Bank under its Economic Management and Capacity Building Program for Liberia with funds provided under the Trust Funds Grant No. IDA 49080, TF A1481, TF17803 and GoL-LBR with Project ID: P115664, P146966. The effective date of the operation of this project was on October 20, 2009. 8 Trust Fund Grant No.: IDA 49080, TF A1481, TF17803 and GoL-LBR Project ID: P115664, P146966 "Emergency Monrovia Urban Sanitation Project (EMUS)" Notes to the Financial Statements For the eighteen (18) months ended December 31, 2016 Project description and objective Component 1: Solid Waste Collection (US$11.2 million) 1.4 The objective of this component is to assist the Monrovia City Corporation (MCC) to provide solid waste services and increase the volume of the collected and disposed waste from approximately 30% of the daily generated waste to 45%. This will be achieved through: (i) technical assistance to small and medium enterprises which provide door-to-door collection service; (ii) construction of transfer stations, provision of equipment, and assistance towards financing the operating cost of service delivery; and (iii) a public awareness campaign to sensitize the population towards safe handling of solid waste. Component 2: Building Institutional and Technical Capacity at MCC US$4.9million) 1.5 This component aims to strengthen the capacity of MCC for proper revenue administration, financial management, and technical oversight to the provision of solid waste services in Monrovia. The following activities will be financed: (i) technical assistance (TA) for a financial and organizational audit followed by assistance for the implementation of selected action items identified by the audit; and (ii) technical assistance for project implementation and supervision. 1.6 In addition, US$1.8 million (10%) has been allocated for contingency and US$ 0.5 million for audit fees, training and operating costs of the implementing agency. 2. Significant accounting policies Basis of accounting and reporting 2.1 The financial statements have been prepared under historical cost convention, in accordance with International Public Sector Accounting Standards (IPSAS). This basis recognizes revenue transactions only when cash is received whilst expenditures are recognized on an accrual basis when goods and/or services are received and the obligation to pay has been incurred. 2.2 No procedures have been adopted to reflect either price changes or changes in the general level of inflation. Trust Fund Grant No.: IDA 49080, TF A1481, TF1 7803 and GoL-LBR Project ID: P115664, P146966 "Emergency Monrovia Urban Sanitation Project (EMUS)" Notes to the Financial Statements For the eighteen (18) months ended December 31, 2016 Currency of reporting 2.3 These financial statements are expressed in United States dollars Cash and near cash assets as well as all iiabilities denominated in other currencies, are translated to United States dollars at the applicable year-end rates. Transactions occurring in other currencies during the year are brought into the books of account at the prevailing rates of exchange on the dates of the respective transactions. Gains oI losses arising on foreign currency transactions are reflected in expenditures for the period in which they arise. Long-term assets 2.4 Long-term assets represent expenditures incurred in capital works and acquisition of property and equipment. Such assets have been stated at historical cost. No depreciation is charged. Grant 2.5 Grant is recognized on cash basis and credited to the Project's account when received. 3. Cash on hand and in bank 2016 2015 $ $ Designated Account - UBA - 2 Designated Account - Grant 1 - 1,819 I esignated Account - Grant 2 (583) 219,025 esignated Account -- Grant 2 49,594 - GOL Support 3639 2,066 52,651 222,912 О !�- б� СО � � О О N М � � t!) Е°_ � гв'�'_ о й Г R� и � О � � о й a�i с�э :с и й о � о = и ш > с .� � = cfl �г ;, �, � � г� � �- ._ � _ � о- _ � Г � � � о t� °� си си ct L a�i rn � � .� � f� д� �- cU �L к � �- �- � � ш � С � о о СО д� � т ��� с� еч и .,_i о 'Qв� � ��/r� м r- �/ L1/ Г � О а � д � С й t° ю � з О С cU О СО О � N � � � � � ш °° г' и о� � � � v � •� � � си � Н •� о � о � ш � а а� а ° о � и. �s � ш � � � г � и � а о � ,,., = L N о�И � � с� Г � с° � � � `л �., r� � � а� � �' � � а _� L с = N � � �,� � д. � � � � Г � с г о� у га � й >, �� � Z со �о �с� е- tC � � N � � � � � � � С и С Rf = � "_' � � о L � N � i �� � о Q) сЛ N r� � � (1, � � � � ++ � V � ' � _ � � �,, L_� С И � L. � ��°' о°' � ci т а т ш v � � а� }, а� �, и .� � � � 'wa,� i-' ° Н °- ш z и°. � _ � ..� -- _ _� __ __ . �, _ �., .. _ - -. -_ . � _ - k - � -�-_ � � ..� .-- ,.� PKF Liberia Accountants & Independent Auditor's Report on the Statement of Expenditures business advisers Project Steering Committee and the World Bank Project Financial Management Unit (PFMU) Ministry of Finance and Development Planning Republic of Liberia We have audited the accompanying Statement of Expenditures of the "Trust Fund Grant No.: IDA 49080, TF A1481, TF17803 and GoL-LBR with Project ID: P146966 and P115664 "Emergency Monrovia Urban Sanitation Project (EMUS)" for the eighteen (18) months ended December 31, 2016 and have obtained all related information required. Management's Responsibility for the Statement of Expenditures The management of the Project Financial Management Unit (PFMU) is responsible for the preparation and fair presentation of the statement of expenditures. Auditor's Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. Our audit was conducted in accordance with International Standards on Auditing and World Bank's guidelines. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatements of the financial statements, 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 financial statements inorder 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 the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the statement of expenditures referred to above presents fairly, in all material respects, the financial transactions of the "Trust Fund Grant No.: IDA 49080, TF A1481, TF17803 and GoL-LBR with Project ID: P146966 and P115664 "Emergency Monrovia Urban Sanitation Project (EMUS"' for the eighteen (18) months ended December 31, 2016 in accordance with International Public Sector Accounting Standards (I PSAS). Tel +231-886-510 562 231-886-510 603 231-886 835-784, Email: pkfliberia@pkf.com.ir - pkfliberia@yahoo.com PKF Liberia , Randall Street * Lara Building * Fourth Floor, Suite 41 - P.O. Box 10-3635 o 1000 Monrovia 10 - Liberia contact Person: Nim'ne E. Mombo, Sr, managing Partner & Prof. D. Ansu Sonii Sr., Partner PKIF-Liberia is a member firm of the PKF International Limited network of legally independent firms and does not accept any responsibility or liability for the actions or inactions on the part of any other individual member firm or firms 12 Additionally, with respect to the Statement of Expenditures (SOEs), sufficient supporting documentations have been maintained in accordance with IPSAS and World Bank guidelines. The expenditures are eligible under the International Development Association (IDA) Grant agreement. F-Libe ria Accountants & business advisors Monrovia 13 Ministry of Finance and Development Planning Trust Fund Grant No.: IDA 49080,TF A1481, TF17803, and GoL-LBR Project ID: P115664, P146966 "Emergency Monrovia Urban Sanitation (EMUS) Project" Statement of Expenditures For the eighteen (18) months ended December 31, 2016 Cumulative July 1, to Cumulative to December December to June 30, 31, 2016 31, 2016 2015 Note US$ US$ US$ Expenditures: Civil works 1 22,623,847 4,703,961 17,919,886 Goods, equipments and vehicles 2 1,525,306 130,219 1,395,087 Consultant services 3 9,166,016 1,819,932 7,346,084 Training and workshops 4 39,410 - 39,410 Operational cost 5 2,966,956 428,589 2,538,367 36,321,535 7,082,701 29,238,834 The notes on pages 14 and 15 form an integral part of this statement. 14 Ministry of Finance and Development Planning Trust Fund Grant No.: IDA 49080,TF A1481, TF17803, and GoL-LBR Project ID: P115664, P146966 "Emergency Monrovia Urban Sanitation (EMUS) Project" Notes to the Statement of Expenditures For the eighteen (18) months ended December 31, 2016 Cumulative July 1, to to December December Cumulative 31,2016 31, 2016 to June 30, 2015 US$ US$ US$ 1.0 Civil Works Site survey fees 63,209 - 63,209 Civil Works 38,247 - 38,247 Waste collection 22,272,846 4,703,961 17,568,885 Construction of sanitary land fill 234,276 - 234,276 Local contract workers 15,269 - 15,269 22,623,847 4,703,961 17,919,886 2.0 Goods, equipment and vehicles Vehicles 647,981 88,960 559,021 Equipment 773,656 24,510 749,146 Office equipment 77,516 13,247 64,269 Furniture & fixtures 16,744 1,752 14,992 Communication equipment 9,410 1,750 7,660 1,525,306 130,219 1,395,087 3.0 Consultancy services Consultants 1,084,845 62,748 1,022,097 Technical Assistance to MCC 312,316 9,900 302,416 Supervising Engineer 1,550,456 - 1,550,456 Project Manager 732,920 108,000 624,920 Procurement Specialist 181,090 - 181,090 Solid Waste Consultant 385,726 - 385,726 Accountant 147,200 80,100 67,100 Contract Supervisor 474,000 48,000 426,000 Civil Egineer 164,500 63,000 101,500 National Financial Consultant 26,364 26,364 - National Organizational Consultant 111,224 48,324 62,900 Supervisor SWC (PIU) 12,650 12,650 - Driver 2,500 2,500 - Technical Officer 8,640 8,640 - Backstopping Waste Collection 468,057 468,057 - Contract for Supply of Truck 98,016 98,016 - Environmental Impact Consultant 175,190 175,190 - Construction of reinforced Consultant 122,988 122,988 - Consultant Resettlement Plan Action 13,700 13,700 - Solid Waste Collection 150,000 150,000 - Rehabilitation works Consultant 96,000 96,000 - Other consultancy service costs 2,794,633 208,755 2,585,878 Accrued audit fees 53,000 17,000 36,000 9,166,016 1,819,932 7,346,084 15 Ministry of Finance and Development Planning Trust Fund Grant No.: IDA 49080,TF A1481, TF17803, and GoL-LBR Project ID: P115664, P146966 "Emergency Monrovia Urban Sanitation (EMUS) Project" Notes to the Statement of Expenditures For the eighteen (18) months ended December 31, 2016 Cumulative July 1, to to December December Cumulative 31, 2016 31, 2016 to June 30, 2015 US$ US$ US$ 4.0 Training and workshops Training 32,307 - 32,307 Study tour 440 - 440 Workshops 6,663 - 6,663 39,410 - 39,410 5.0 Operational cost Vehicle operating & maintenance cost 1,084 - 1,084 Fuel 477,698 122,300 355,398 Motor license & insurance 81,933 18,593 63,340 Vehicle repair & maintenance 408,107 99,188 308,919 Travelling and transportation 23,809 - 23,809 Daily Sustenance Allowance, hotel & acc( 23,802 - 23,802 Air fares, vehicle hire, etc. 126,129 - 126,129 Office supplies 101,067 7,263 93,804 0 Refreshment 59,860 865 58,995 Postage & Courier charges 1,104 - 1,104 Field trip & Transportation 1,177 - 1,177 Production and binding 122,945 - 122,945 Stationery and printing 114,163 27,397 86,766 Repairs & maintenance - skip truck 362,334 8,489 353,845 Communication 159,351 33,401 125,950 Advertising & publicity 119,394 5,217 114,177 Common services 28,171 6,052 22,119 Bank charges 215,221 13,777 201.444 Repairs & maintenance - equipment 20,504 2,901 17,603 Office renovation 83,066 - 83,066 Utilities 108,083 1,026 107,057 Equipment hire 237,291 77,200 160,091 Motorbikes, helmets, wet gear 33,155 1,679 31,476 Miscellaneous expenses 57,510 3,242 54,268 2,966,956 428,589 2,538,367 PKF Liberia Accountants & business advisers Independent Auditor's Report on the Designated Account Statement Project Steering Committee and the World Bank Project Financial Management Unit (PFMU) Ministry of Finance and Development Planning Republic of Liberia We have audited the accompanying project Designated Account Statement of the Emergency Monrovia Urban Sanitation Project (Number: IDA 49080, TF A1481 TF17803 and GoL-LBR) for the eighteen months ended December 31, 2016. Management's Responsibility for the Designated Account Statement The statement is the responsibility of the Project Financial Management Unit (PFMU) at the Ministry of Finance and Development Planning, Republic of Liberia. This responsibility includes: designing, implementing, and maintaining internal control relevant to the preparation and 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 these financial statements based on our audit. Our audit was conducted in accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatements of the financial statements, 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 financial statements inorder 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 the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Tel +231-886-510 562 231-886-510 603 . 231-886 835-784 * Email: pkfliberia@pkf.com.Ir pkfliberia@yahoo.com PKF Liberia *Randall Street Lara Building * Fourth Floor Suite 41" P.O. Box 10-3635 *1000 Monrovia 10* Liberia contact Person: Nim'ne E. Mombo Sr., Managing Partner & Prof. D. Ansu Sonli Sr., Partner PKF-Liberia is a member firm of the PKF International Limited network of legally independent firms and does not accept any responsibility or liability for the actions or inactions on the part of any other individual member firm or firms 17 Opinion In our opinion, the receipts have been properly accounted for and withdrawals were made for the purpose of the project in accordance with the provisions of the International Development Association (IDA) Grant (Number IDA 49080, TF A1481, TF17803 and GoL-LBR). PKF-Lbi a Accountants & business advisors Monrovia 18 DESIGNATED ACCOUNT RECONCILIATION FOR THE EIGHTEEN (18) MONTHS ENDED DECEMBER 31, 2016 Accounts No: 530-300300-00-9-87 Account Title: Emergency Monrovia Urban Sanitation (EMUS) Project Bank: United Bank of Africa Broad & Nelson Street, Monrovia Cumulative July 1, 2013 to to Cumulative December December to June 31,2016 31,2016 30,2015 US$ US$ US$ US$ US$ Opening balance - 2 - Transfer Reference - EMUS/MOF/001 2,000,000 2,000,000 Transfer Reference - EMUS/MOF/003 1,654,611 1,654,611 Transfer Reference - EMUS/MOF/004 568,209 568,209 Transfer Reference - EMUS/MOF/009 976,741 976,741 Transfer Reference - EMUS/MOF/015 376,398 376,398 Transfer Reference - EMUS/MOF/019 1,213,129 1,213,129 Sale of bid document 6,967 6,967 Transfer Reference - EMUS/MOF/027 715,753 715,753 Transfer Reference - EMUS/MOF/033 712,419 712,419 Transfer Reference - EMUS/MOF/048 952,310 952,310 Transfer Reference - EMUS/MOF/051 1,387,682 1,387,682 Transfer Reference - EMUS/MOF/052 1,005,648 17005,648 Transfer Reference - EMUS/MOF/057 846,526 - 846,526 Transfer Reference - EMUS/MOF/058 789,380 - 789,380 Transfer Reference - EMUS/MOF/059 399,225 - 399,225 Sale of bid document 6,350 - 6,350 Funds Available 13,611,349 2 13,611,349 Payments Acounted for to December 31, 2C 13,611,349 2 13,611,347 Closing balance ()0 2 19 DESIGNATED ACCOUNT RECONCILIATION FOR THE EIGHTEEN (18) MONTHS ENDED DECEMBER 31, 2016 Accounts No: 530-300300-00-21-69 Account Title: Emergency Monrovia Urban Sanitation (EMUS) Project Bank: United Bank of Africa (Grant 2) Broad & Nelson Street, Monrovia Cumulative July 1 2015 cumulative to to December to June 31,2016 December 30. 2015 31,2016 uss Beginning balance 1,819 Transfer Reference - EMUS/MOF/001 500,000 - 500,000 Transfer Reference - EMUS/MOFl003 41,074 - 41,074 Transfer Reference - EMUS/MOF/005 208,117 - 208,117 Transfer Reference - EMUS/MOF/006 328,593 - 328,593 Transfer Reference - EMUS/MOF/007 131,197 131,197 Transfer Reference - EMUS/MOF/008 219,236 219,236 Transfer Reference - EMUSIMOFl009 48,407 48,407 Transfer Reference - EMUS/MOF/010 297,894 297,894 Transfer Reference - EMUS/MOF/011 271,995 271,995 Transfer Reference - EMUS/MOF/012 166,906 166,906 Transfer Reference - EMUSIMOFl013 179,356 179,356 Transfer Refefence - EMUS/MOF/014 190,485 190,485 Transfer Reference - EMUS/MOFl015 250,263 250,263 Transfer Reference - EMUSIMOF/016 162,117 162,117 Transfer Reference - EMUS/MOF/017 190,166 190,166 Transfer Reference - EMUS/MOF/018 99,642 - 99,642 Transfer Reference - EMUS/MOF/019 136,464 - 136,464 Transfer Reference - EMUS/MOF/020 400,000 - 400,000 Transfer Reference - EMUS/MOF/021 30,408 - 30,408 Transfer Reference- GOL Support 40,332 - 40,332 Funds Available 3,892,652 1,819 3,892,652 Expenditures Accounted for up to December 31, 2016 (3,892,652) (1,819) (3,890,833) Closing balance 0 0 1,819 L7 7] 20 DESIGNATED ACCOUNT RECONCILIATION FOR THE EIGHTEEN (18) MONTHS ENDED DECEMBER 31, 2016 Accounts No: 530-300-00-22-84 Account Title: Emergency Monrovia Urban Sanitation (EMUS) Project Bank: United Bank of Africa (GOL) Broad & Nelson Street, Monrovia Cumulative to July 1, 2014 Cumulative December to December to June 31,2016 31, 2016 30,2015 US$ US$ US$ Beginning balance 2,065 Transfer Refrence-EMUS-GOL/MOF/001 156,000 - 156,000 Transfer Refrence-EMUS-GOL/MOF/002 122,000 - 122,000 Transfer Refrence-EMUS-GOLIMOF/003 170,000 - 170,000 Transfer Refrence-EMUS-GOL/MOFl004 310,000 - 310,000 Transfer Refrence-EMUS-GOLIMOF/005 130,000 - 130,000 Transfer Refrence-EMUS-GOLIMOF1006 250,000 - 250,000 Transfer Refrence-EMUS-GOL/MOF/008 192,000 - 192,000 Transfer Refrence-EMUS-GOL/MOF/009 106,000 - 106,000 Transfer Refrence-EMUS-GOL/MOF/010 376,418 - 376,418 Transfer Refrence-EMUS-GOLIMOFl011 530,000 - 530,000 Transfer Refrence-EMUS-GOL/MOF/012 250,000 - 250,000 Transfer Refrence-EMUS-GOL/MOF/01 3 5,000 - 5,000 Transfer Refrence-EMUS-GOLIMOF/014 500,000 - 500,000 Transfer Refrence-EMUS-GOL/MOFl015 695,500 695,500 - Transfer Refrence-EMUS-GOL/MOF/016 512,000 512,000 Transfer Refrence-EMUS-GOLIMOF/017 185,333 185,333 - Funds Available for up to December 31, 2016 4,490,251 1,394,898 3,097,418 Expenditures Accounted for up to December 31, 2016 (4,486,612) (1,391,259) (3,095,353) Closing balance 3,639 3,639 2,065 21 DESIGNATED ACCOUNT RECONCILIATION FOR THE EIGHTEEN (18) MONTHS ENDED DECEMBER 31, 2016 Accounts No: 220530000217 Account Title: Emergency Monrovia Urban Sanitation (EMUS) Project Bank: United Bank of Africa (Grant 3) Broad & Nelson Street, Monrovia July 1, 2014 Cumulative to July 1 2015 to June December 31, to December 30,2015 2016 31,2016 3,0 US$ Beginning balance 219,025 Transfer Refrence-EMUS-AF2/MOF/001 700,000 700,000 Transfer Refrence-EMUS-AF2/MOF/003 603,334 603,334 Transfer Refrence-EMUS-AF2/MOF/004 453,184 453,184 Transfer Refrence-EMUS-AF2/MOF/005 340,233 340,233 Transfer Refrence-EMUS-AF2/MOF/006 385,075 385,075 Transfer Refrence-EMUS-AF2/MOF/007 283,494 283,494 Transfer Refrence-EMUS-AF2/MOF/008 499,714 499,714 Transfer Refrence-EMUS-AF2/MOF/009 458,775 458,775 Transfer Reference-EMUS-AF2/MOF010 414,079 414,079 Transfer Reference-EMUS-AF2/MOFO1 1 191,328 191,328 Transfer Reference-EMUS-AF2/MOF013 382,326 382,326 Transfer Reference-EMUS-AF2/MOF014 304,453 304,453 Transfer Reference-EMUS-AF2/MOF015 320,477 320,477 Transfer Reference-EMUS-AF2/MOF016 319,128 319,128 Transfer Reference-EMUS-AF2/MOF017 465,912 465,912 Transfer Reference-EMUS-AF2/MOF018 197,684 197,684 Transfer Reference-EMUS-AF2/MOF019 459,573 459,573 Funds Available for up to December 31, 2016 6,778,768 3,273,986 3,723,808 Expenditures Accounted for up to December 31, 2016 (6,779,351) (3,274,568) (3,504,782) Closing balance (583) (583 219,025 1 22 DIRECT PAYMENTS FOR THE YEAR ENDED JUNE 30, 2015 Grant NO: TF 94060(TF) Emergency Monrovia Urban Sanitation (EMUS) Project Cumulative July 1, 2014 to Cumulative to December 31, December 31, to June 2016 2016 30, 2014 US$ US$ US$ Transfer Reference - EMUS/MOF/005 170,556 - 170,556 Transfer Reference - EMUS/MOF/006 162,476 - 162,476 Transfer Reference - EMUS/MOF/008 95,884 - 95,884 Transfer Reference - EMUS/MOF/010 86,016 - 86,016 Transfer Reference - EMUS/MOF/01 1 11,507 - 11,507 Transfer Reference - EMUS/MOF/012 52,240 - 52,240 Transfer Reference - EMUS/MOF/013 11,738 - 11,738 Transfer Reference - EMUS/MOF/014 53,802 - 53,802 Transfer Reference - EMUS/MOF/017 96,554 - 96,554 Transfer Reference - EMUS/MOF/018 21,299 - 21,299 7] Transfer Reference - EMUS/MOF/020 56,490 - 56,490 Transfer Reference - EMUS/MOF/022 91,764 - 91,764 Transfer Reference - EMUS/MOF/021 12,442 - 12,442 Transfer Reference - EMUS/MOF/024 174,682 - 174,682 Transfer Reference - EMUS/MOF/025 199,330 - 199,330 Transfer Reference - EMUS/MOF/028 181,220 - 181,220 Transfer Reference - EMUS/MOF/029 99,658 - 99,658 Transfer Reference - EMUS/MOF/030 284,382 - 284,382 Transfer Reference - EMUS/MOF/031 70,056 - 70,056 Transfer Reference - EMUS/MOF/032 87,829 - 87,829 Transfer Reference - EMUS/MOF/034 84,363 - 84,363 Transfer Reference - EMUS/MOF/036 255,622 - 255,622 Transfer Reference - EMUS/MOF/037 254,987 - 254,987 Transfer Reference - EMUS/MOF/038 319,018 - 319,018 Transfer Reference - EMUS/MOF/040 216,656 - 216,656 Transfer Reference - EMUS/MOF/041 110,793 - 110,793 Transfer Reference - EMUS/MOF/043 70,936 - 70,936 Transfer Referewce - EMUS/MOF/044 84,203 - 84,203 Transfer Reference - EMUS/MOF/045 151,283 - 151,283 Transfer Reference - EMUS/MOF/047 119,196 - 119,196 Transfer Reference - EMUS/MOF/049 110,326 - 110,326 Transfer Reference - EMUS/MOF/050 295,371 - 295,371 Transfer Reference - EMUS/MOF/053 116,924 - 116,924 Transfer Reference - EMUS/MOF/054 112,683 - 112,683 Transfer Reference - EMUS/MOF/055 122,555 - 122,555 Transfer Reference - EMUS/MOF/056 306,819 - 306,819 Funds Available 4,751,661 - 4,751,661 Payments Acounted for to June 30, 2014 (4,751,661 - (4,751,661) Closing balance _ _ _ Grant NO: TF 94060(TF) Transfer Reference - EMUS/MOF/054 148,770 - 148,770 Grant No: TF 17803 Transfer Reference - EMUS-AF2/MOF/002 22,27 - 221,207 Grant No. AT A1481 Transfer Reference - EMUS-AF2/MOF/002 224,640 - 224,640 DESIGNATED ACCOUNT RECONCILIATION FOR THE EIGHTEEN (18) MONTHS ENDED DECEMBER 31, 2016 Accounts No: 1102006848 Account Title: Emergency Monrovia Urban Sanitation (EMUS) Project Bank: Central Bank of Liberia Ashmum Street July 1, 2015 to December 31, 2016 Transfer Refrence-MFDP/EMUSAF3/001 500,000 Transfer Refrence-MFDP/EMUSAF3/002 308,274 Transfer Refrence-MFDP/EMUSAF3/003 159,148 Transfer Refrence-MFDP/EMUSAF3/004 252,999 Transfer Refrence-MFDP/EMUSAF3/006 285,435 Transfer Refrence-MFDP/EMUSAF3/007 112,037 Transfer Refrence-MFDP/EMUSAF3/008 418,627 Transfer Refrence-MFDP/EMUSAF3/009 418,127 Funds Available for up to December 31, 2016 2,454,657 Expenditures Accounted for up to December 31, 2016 (2,405,062) Closing balance 4 World Bank Funded Project (Emergency Monrovia Urban Sanitation Project) Implemented by the Government of Liberia through "Project Financial Management Unit in the Ministry of Finance and Development Planning" (PFMU) Management Letter Clearance For the Eighteen (18) months ended December 31, 2016 PKF Liberia Accountants & business advisers April 20, 2017 Project Steering Committee and the World Bank Project Financial Management Unit (PFMU) Ministry of Finance and Development Planning Republic of Liberia Dear Sir: Management Letter Clearance In connection with our audit of the Emergency Monrovia Urban Sanitation Project (EMUS) for the eighteen (18) months ended December 31, 2016; we confirm that no matters came to our attention during the course of the audit that we considered significant enough to warrant issuance of a separate management letter. KF- Libea Accountants & business advisors Tel +231-886-510 562 231-886-510 603 231-886 835-784 Email: pkfliberia@pkf.com.Ir - pkfliberia@yahoo.com PKF Liberia *Randall Street * Lara Building - Fourth Floor Suite 41 P.O. Box 10-3635 -1000 Monrovia 10 Liberia contact Person: Nim'ne E. Mombo Sr., Managing Partner & Prof. D. Ansu Sonii Sr., Partner PKF-Liberia is a member firm of the PKF Intemational Limited network of legally independent firms and does not accept any responsibility or liability for the actions or inactions on the part of any other individual member firm or firms