AFRICA HIGHER EDUCATION CENTERS OF EXCELLENCE PROJECT FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2oi8 Afica Higher Education Centers ofExcellence Project Year ended 31 December 2018 Content Pages Project management information 1 Project background 2 Report of the Project Management Team 3 Independent Auditors Report 4-6 Financial statements: Statement of Receipts and Payments 7 Notes 8 -11 Africa Higher Education Centers ofExcellence Project Year ended 31 December 2018 PROJECT MANAGEMENT INFORMATION Project Management Team Prof. Gordon Awandare - Director/Chair Prof. Kwadwo Koram - Deputy Centre Leader Prof. Dorothy Yeboah-Manu - Post-doctoral Programme Coordinator Prof. Neils Ben Quashie - Representative for College of Health Sciences Prof. Daniel B. Sarpong - Representative for College of Basic and Applied Sciences Prof. Isaac K. Asante - Representative for Vice Chancellor Dr. Lydia Mosi - Logistics Coordinator Dr. Lucas Amenga-Etego - Sectoral Liaison Officer Rev. Dr. W.S.K Gbewonyo - Mentorship Coordinator Dr. Osbourne Quaye - Head of Monitoring & Evaluation Dr. Therasa Manful Gwira - Graduate Admissions & Examinations Coordinator Dr. Patrick Arthur - Head of Research and Training Dr. Winfred-Peck Dorleku - Industrial Liaison Officer Mr. Barfi-Adomako Owusu - Co-Head ICT-Electronic Resources Mr. Anaamoatulim Anab - Finance Manager Ms. Ama Gyakyewaa Dadson - Co-Head ICT-Physical Resources Mrs. Constance Kocke - Representative for UG Procurement Unit Ms. Belinda L. Lartey - Representative for Graduate Students Dr Mamoudou Cisse -Representative for Regional Partners Registered office West African Centre for Cell Biology of Infectious Pathogens (WACCBIP) Dept. of Biochemistry, Cell and Molecular Biology College of Basic and Applied Sciences University of Ghana P.O. Box LG 54 Legon, Accra Auditor PricewaterhouseCoopers Chartered Accountants No. 12 Airport City UNA Home 3d Floor PMB CT 42 Cantonments, Accra 1 Africa Higher Education Centers ofExcellence Project Year ended 31 December 2o8 PROJECT BACKGROUND The Africa Higher Education Centers of Excellence Project is sponsored by International Development Association. The Project is implemented by the West African Center for Cell Biology of Infectious Pathogens (WACCBIP) at the University of Ghana and seeks to improve diagnosis, prevention and control of infectious diseases in sub-Saharan Africa by providing advanced level training and research excellence on the cell and molecular biology of infectious pathogens. The objectives of the Project are: * to develop and run short-term projects (2-4 week long workshops/courses) targeting professionals in the health delivery sector, including physicians, pharmacists, and senior laboratory personnel, to improve their knowledge of disease pathogenesis and modern methods of diagnosis and treatment; * to run 3-6 month long research internships projects for trainee biomedical scientists and hospital laboratory technologists, to provide experiential training on research design, specialized techniques, and team building skills; and * to develop and run new Masters and PhD projects in Molecular Cell Biology, targeting career biomedical scientists in Universities and Health research institutions. This is in addition to the already existing programs at BCMB (MSc/MPhiI Biochemistry, MPhil Molecular Biology and PhD Biochemistry). U The project spans a period from 10 April 2015 to 31 March 2020. U Africa Higher Education Centres ofExcellence Project Year ended 31 December 2018 REPORT OF THE PROJECT MANAGEMENT TEAM The Project Management Team has the pleasure in submitting their report and the audited financial statements of the Project for the year ended 31 December 2018. Statement of responsibility by the Project Management Team The Project Management Team is responsible for the presentation of the financial statements for the period which presents in all material respects funds received and expenditure incurred for the year. In preparing the financial statements, the Project Management Team has selected suitable accounting policies and applied them consistently and followed the cash basis of accounting as indicated on page 8. The Project Management Team is responsible for ensuring that the Project keeps proper accounting records that disclose with reasonable accuracy at any time the cash position of the Project. The Project Management Team is also responsible for safeguarding the assets of the Project and taking reasonable steps for the prevention and detection of fraud and other irregularities. Results for the year The Statement of Receipts and Payments on page 7 shows a deficit for the year of US$1,065,644 (2017: US$633,655). Direc: 25 June 2019 3 INDEPENDENT AUDITOR'S REPORT TO THE BOARD OF AFRICA HIGHER EDUCATION CENTRES OF EXCELLENCE PROJECT REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS Our opinion In our opinion, the accompanying financial statements of the Africa Higher Education Centres of Excellence Project for the year ended 31 December 2018 are prepared, in all material respects, in accordance with the financial reporting policies described in note 1 to the financial statements. What we have audited We have audited the financial statements of the Africa Higher Education Centres of Excellence Project (the "Project") for the year ended 31 December 2018. The financial statements on pages 7 to 11 comprise: * the Statement of Receipts and Payments for the year ended 31 December 2018; and * the notes to the financial statements, which include a summary of significant accounting policies. 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 believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Independence We are independent of Africa Higher Education Centres of Excellence Project, Office of Research and Development (ORID) of the University of Ghana and its donors in accordance with the International Ethics Standards Board for Accountants' Code of Ethics for Professional Accountants (IESBA Code). We have fulfilled our other ethical responsibilities in accordance with the IESBA Code. Other information The Project Management Team is responsible for the other information. The other information comprises Report of the Project Management Team but does not include the financial statements and our auditor's report thereon. 4 INDEPENDENT AUDITOR'S REPORT TO THE BOARD OF AFRICA HIGHER EDUCATION CENTRES OF EXCELLENCE PROJECT (CONTINUED) REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS (CONTINUED) Other Information (Continued) 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 identified above 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, we are required to report that fact. We have nothing to report in this regard. Emphasis of Matter - Basis of Accounting and Restriction on Distribution and Use We draw attention to note 1 to the financial statements which describes the basis of accounting. The financial statements are prepared to assist the Project Management Team to report to the board of Africa Higher Education Centres of Excellence Project. As a result, the financial statements may not be suitable for another purpose. Our report is intended solely for the use of the Project Management Team and the Board of Africa Higher Education Centres of Excellence Project and should not be distributed to or used by parties other than the Project Management Team and the Board of Africa Higher Education Centres of Excellence Project. Our opinion is not modified in respect of this matter. Responsibilities of management and those charged with governance for the financial statements The Project Management Team is responsible for the preparation of the financial statements in accordance with the financial reporting provisions of the agreement, 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. In preparing the financial statements, the Project Management Team is responsible for assessing the Project's ability to continue as a going concern. Under the terms of the grant agreement, the Project will end by 31 March 2020. Those charged with governance are responsible for overseeing the Project'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. INDEPENDENT AUDITOR'S REPORT TO THE BOARD OF AFRICA HIGHER EDUCATION CENTRES OF EXCELLENCE PROJECT (CONTINUED) REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS (CONTINUED) Auditor's responsibilities for the audit of the financial statements (continued) As part of an audit in accordance with ISAs, we exercise professional judgement and maintain professional scepticism throughout the audit. We also: * 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; * 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 Project's internal control; * Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management; and * Conclude on the appropriateness of management's 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' 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 auditors report. However, future events or conditions may cause the Project to cease to continue as a going concern. 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. The engagement partner on the audit resulting in this independent auditor's report is Hayfron Aboagye (ICAG/P/1 502). icewaterhouseCoopers (ICAGIF20191028) Chartered Accountants Accra, Ghana 26 June 2019 I 6 U Afica Higher Education Centers ofExcellence Project Financial statements Year ended 31 December 2018 STATEMENT OF RECEIPTS AND PAYMENTS (All amounts are expressed in US Dollars) Year ended 31 December Note 2018 2017 Receipts Transfers from International Development Association 2 600,000 2,614,432 Other receipts 3 - 75,470 Total - - Payments Achieving excellence in training 4 414,702 449,390 Improving leaming experience 5 909,455 1,234,354 Develop regional partnerships and programs 6 29,495 22,022 Promote applied research 7 124,018 119,059 Management and governance establishment 8 132,349 153,760 Project management 9 52,467 74,553 Contingency 10 3158 3,109 Total 1,665"644 2,056,?47 (Deficit)! Surplus for the year (.S44 635 Balance at 1 January 2,175,052 1,541,397 (Deficit)/ Surplus for the year (1,065,644) 633 655 Fund Balance at 31 December 111,19408 The Statement of Receipts and Payments and accompa"ni notes on pages 8 to 11 were approved by the Project Management Team on e ......... June 2019 and signed on its behalf by: Name: 6aydp 43WaJfr Name: Project Director Finance Officer Signature* Signature Date: . .June 2019 Date. t2June 2019 7 Africa Higher Education Centers ofExcellence Project Financial statements Year ended 31 December 2018 NOTES 1. Accounting policies The principal accounting policies adopted in the preparation of the financial statements are set out below: (a) Basis of accounting The financial statements have been prepared using the cash basis of accounting. (b) Receipts Transfers are recognized as receipt when received in the bank accounts of WACCBIP of the University of Ghana. (c) Payments Expenditure is recognized when payment is made. (d) Foreign currencies Functional and presentation currency The financial statements are presented in United States Dollars which is the presentation currency of the Project. The functional currency is Ghana Cedis. Transactions denominated in currencies other than US Dollars are translated into US Dollars and recorded at the exchange rate prevailing at the date of the transaction. Foreign exchange gains and losses arising from the translation of year end balances of monetary assets and liabilities denominated in currencies other than the presentation currency are recognised in the statement of receipts and payments. (e) Capital Expenditure Capital expenditure is expensed on acquisition. (f) Cash and Bank balance Cash and bank balance consist of cash in hand and deposits held with financial institutions. I 8 Africa Higher Education Centers of Excellence Project Financial statements Year ended 31 December 2018 NOTES (continued) (All amounts are expressed in US Dollars unless otherwise stated) Year ended 31 December 2018 2017 2. Transfers from international Development Association First tranche 600,000 2,300,000 Second tranche - 314432 3. Other receipts This is made up of interest on investment and bus hire (2017: US$75,470). The receipts for 2018 has been reported and validated separately in the Externally Generated Funds report for 2018 in line with World Bank directives. 2018 2017 4. Achieving excellence in training Obtain international accreditation for new curricula 2,274 4,487 Enrol new students and support training of existing students in Mphil 114,944 148,480 Enrol new students and support training of existing students in PhD 255,871 271,878 Outreach event targeting women and minority groups 122 3,166 Develop and run curricula for existing and new short courses 41,491 21,379 5. Improving learning experience Refurbish and upgrade ICT infrastructure, purchase software 291,469 312,899 Provision of new lecture and seminar rooms, conference room and offices 329,042 334,626 Upgrade cell biology core facility 232,295 416,685 Upgrade research laboratories 44,921 156,647 Engagement of international faculty for teaching courses, workshops and co-supervision of students 11,728 -J13,497 9 S Africa Higher Education Centers ofExcellence Project Financial statements Year ended 31 December 2018 NOTES (continued) (All amounts are expressed in US Dollars unless otherwise stated) Year ended 31 December 2018 2017 6. Develop regional and national partnerships and programs Maintain active website for showcasing centre's activities and available opportunities 3,543 7,175 Engagement of regional faculty for teaching and co-supervision of student research 6,656 1,201 Conduct outreach programs and seminar/lecture tours regionally 1,986 428 Provide travel awards for regional students and faculty for short research visits 17,310 13218 2%49A 22,022 7. Promote applied research Support centre projects across partner institutions that provide students high quality experience in research 62,157 47,978 Support short training and research visits for faculty and students outside the ACE 33,717 26,333 Support incubator projects at the centre 5,223 17,701 Investigating the aetiology of febrile illness in Ghana 22,921 27,047 8. Management and governance establishment Ensure regular meetings of international advisory board, steering committee and the two subcommittees 15,817 13,575 Maintain administrative support team for the centre 109,250 136,668 Purchase equipment, furniture and office supplies for administrative team 7,282 3,517 9. Project management This represents expenditure made on administrative aspects of the project, including audit fees and insurance. 10 Africa Higher Education Centers ofExcellence Project Financial statements Year ended 31 December 2018 NOTES (continued) (All amounts are expressed in US Dollars unless otherwise stated) 10. Contingency This represents bank charges for the year. 11. Fund balance This represents cash balance of the project at year end held in the pool bank accounts of WACCBIP of University of Ghana and investment in fixed deposit with IDEAL Capital Partners. 12. Commitments There were no commitments as at the report signing date. 15. Unretired advances There were no unretired advances as at the report signing date. 11