AFRICA HIGHER EDUCATION CENTRES OF EXCELLENCE PROJECT WEST AFRICAN CENTRE FOR CROP IMPROVEMENT (WACCI) FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2018 Africa Higher Education Centres ofExcellence Project Year ended 31 December 2018 Contents Pages Project management information 1 Project background 2 Report of the Project Management Team 3 Independent Auditor's Report 4-6 Financial statements: Statement of Receipts and Payments 7 Notes 8-11 Africa Higher Education Centres of Excellence Project Year ended 31 December 2018 PROJECT MANAGEMENT INFORMATION Project Management Team Prof. Eric Y. Danquah - Centre Leader Dr Daniel Dzidzienyo - Deputy Centre Leader Dr Agyemang Danquah - Project Collaborator Dr John Eleblu - Project Collaborator Prof. Pangirayi Tongoona - Project Collaborator Dr. Beatrice Elohor Ifie - Project Collaborator Mrs Jennifer Saint-Acquaye - Industrial & Sectoral Liaison/ Monitoring and Evaluation Coordinator Mr Kwadwo Owusu Afrifa - Finance Officer Mr Razak Mohammed - Procurement Officer Registered office West Africa Centre for Crop Improvement College of Basic and Applied Sciences University of Ghana PMB LG 304 Legon, Accra Ghana Auditor PricewaterhouseCoopers Chartered Accountants No. 12 Airport City UNA Home 3rd Floor PMB CT 42 Cantonments, Accra Ghana Bankers Stanbic Bank Ghana Limited 1 Africa Higher Education Centres ofExcellence Project Year ended 31 December 2018 PROJECT BACKGROUND The Africa Higher Education Centres of Excellence Project is a research Project run by the West Africa Centre for Crop Improvement (WACCI) of the University of Ghana. The Project is funded with a research grant from the World Bank. The grant is administered by the International Development Association (IDA). The Project seeks to transform WACCI into a sustainable world class platform for the training of plant breeders and seed scientists and technologists. This will enhance the regional food security through the development, multiplication and supply of superior crop varieties and hybrids that meet the needs of farmers. Working with about 20 National Agricultural Research Institutions (NARis) and other advanced research institutions globally, private sector and farmers, the Project aims to: * admit and train 65 PhD students in Plant breeding and 60 MPhil students in Seed Science and Technology between 2015 and 2020; * expand, modernize and strengthen WACCI breeding programme; * review and introduce new curricula and equip the Biotechnology Centre for cutting edge research and training; * host world-class visiting faculty including Africans in the diaspora; * grant short-term external fellowships in advanced laboratories to WACCI PhD students; * arrange three months internships for seed science and technology students for hands-on training with seed companies; * strengthen research collaboration with advanced institutions; and * open up for mentoring of WACCI PhD and MPhil students by scientists in advanced laboratories. The Project was to be implemented for a period of four years (4) from 1 January 2015 to 31 December 2018. It was however extended to span for an additional fifteen months (up to 31 March 2020). 2 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 described 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. Financial Results The Statement of Receipts and Payments on page 7 shows a deficit for the year of US$512,684 (2016: Deficit of US$211,796). Project Management Team: Name: 'YT ~~kCLO Name: %1-(1 lL\A Signature: Signature: Date: .2'..June 2019 Date: .. 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 West Africa Centre for Crop Improvement (WACCI) of 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. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion 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) 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. 5 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 auditor's 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). ricewaterhouseCoopers (ICAG/F/ 019/028) Chartered Accountants Accra, Ghana 28 June 2019 PWC 6 Africa Higher Education Centres 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 2a 2,265,618 1,400,000 Transfer from Ministry of Finance 2b - 286,017 - Total 2 1.400.000 Payments Setting-up institutional framework for commencement of ACE 3 2,653 1,685 Strengthening education capacity 4 230,647 355,631 Strengthening education capacity and development impact 5 206,579 280,264 Strengthening research capacity (excellence) 6 2,587,981 950,142 Strengthening education and research capacity 7 18,836 2,009 Adhering to best financial management practices 8 11,513 15,464 Undertake best procurement practices 9 - 3,440 Contingency 10 6,110 3,161 Total 3,064,319 1,611,796 Surplus/(Deficit) for the year (512.68 (211.796 Balance at 1 January 790,437 1,002,233 Surplus/(Deficit) for the year (512,684) (211,796) Fund Balance at 31 December 2 790437 The Statement of Receipts and Payments and accompanying notes on pages 8 to 11 were approved by the Project Management Team on ........ June 2019 and signed on its behalf by: 7 Prof. Eric Y. Danquah, Centre Leader Kwadwo Owusu Afrifa, Finance Officer Signature: < Signature: Date: ... ..June 2019 Date: ... June 2019 7 Africa Higher Education Centres 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 from International Development Association and Ministry of Finance are recognized as receipt when received into the Project bank accounts. (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 receipts and payments statement. (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 Stanbic Bank Ghana Limited. 8 Africa Higher Education Centres 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 2a. Transfers from International Development Association Description Details 1st disbursement Transfer to Project 1,100,000 1,400,000 2nd disbursement Transfer to Project 300,000 - 3rd disbursement Transfer to Project 500,000 - 4th disbursement Transfer to Project 365,618 - 2b. Transfers from Ministry of Finance The disbursements below relate to funds from the Ministry of Finance, Ghana, transferred to WACCI to assist with the ACE program implementation and the completion of the office building for the Centre. 1st disbursement Transfer to Project 158,898 - 2nd disbursement Transfer to Project 127,119 - 3. Setting-up institutional framework for commencement of ACE Schedule and hold ACE M&E meetings - 1,685 Schedule Hold ACE Implementation Meetings 2 - 4. Strengthening education capacity Obtain programme accreditation 12,736 37,860 Admit quality students into PhD programme 126,665 135,534 Admit quality students into MPhil programme 34,424 127,519 Offer required taught courses to first year PhD and MPhil students 38,401 20,054 Attract, retain and retool faculty in ACE relevant areas 6,759 7,064 Students stipends 11,662 24,000 Students laptops and external drives - 3,000 Students book allowance - 600 230,647 355631 9 Africa Higher Education Centres 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 Strengthening education capacity and development 5. impact Broaden students' knowledge through exposure to - 923 advanced institutions Engage partners from advanced institutions for teaching and learning 46,870 - Establish new partnerships and strengthen existing ones - 41,142 ACE Workshops and Management/Staff Travel 1,224 51,644 Workshops/Seminars - Short Courses 158,485 186,555 2_24 6. Strengthening Research Capacity (Excellence) Upgrade WACCI model farm 374,737 33,807 Procure network equipment & accessories 139 1,194 Procure computers and accessories 1,050 227 Procure general office consumables 17,204 16,909 Vehicle running costs 33,589 13,810 Build lecture rooms, seed science laboratory and bioinformatics platform 1,372,381 479,578 Accounting database and maintenance 4,848 4,824 Students' research 414,456 143,107 Bioinformatics equipment and accessories 180,437 108,507 Procure seed science laboratory equipment 105,300 23,418 Peer-reviewed journals and publication - 540 Lecture room equipment and accessories 245 4,853 Office furniture and fittings 12,478 44,429 Students' accommodation 70,082 70,986 Medical insurance and aid - 3,953 Peer-reviewed journals and publication 1,035 - 29587,981 5 2 7. Strengthening education and research capacity Provide and maintain academic infrastructure 20-09 8. Adhering to best financial management practices Ensure internal and external audit oversight 1115-4 9. Undertake best procurement practices Undertake third-party procurement processes verification - 3- 10 Africa Higher Education Centres ofExcellence Project Financial Statements Year ended 31 December 2018 NOTES (continued) (All amounts are expressed in US Dollars unless otherwise stated) 10. Contingency The contingency is made up of bank charges, other meeting and student expenses. 11. Fund balance This represents cash and bank balance of the Project as at 31 December 2018. 11