• ltWm~ Y OF FINANCE • • REPUBLIC OF GHANA 6HANA ECONOMIC MANA6EMENJT STREN6THENIN6 TECHNICAL ASSISTANCE ( 6£MS-TA) PROJECT ' • FINANCIAL STATEMENTS ' i FOR THE YEAR ENDED I 81 DECEMBER 2018 I I I I I 00@0 f,c,<,ponsive Ethk.c1l Flficicnl Prol,",',1011ctl I r ---------~ • • AUDIT SERVICE I In case of reply the number and date of the letter should be quoted I My Ref. .Vo:c.GAD/PRO.GEMS-T A/02 Good Gover,uma four Ref .Vo.: ... P. 0. Box............ M.96 I Tel: 233 (0) 302 664920/28/29 Fax: 233 (0) 302 6751495 and Accountability · ... · ·AE:cra Web~ite: www.ghaudit.org £ ... 31 May ....... 20 ..J9 I PROJECT CORDINATOR GHANA ECONOMIC MANAGEMENT STRENGTHENING PROJECT ACCRA INDEPENDENT AUDITORS REPORT ON THE 2018 • t1 Iii FINANCIAL STATEMENTS I We have audited the financial statement of GEMS-TA Project which comprises the: I • Statement of Financial Position as at 31 December 2018 • Statement of Financial Performance I I • Cash flow statement for the year ended and I • Notes to the Financial Statement including significant accounting policies and other explanatory information as set out in the report I Respective responsibilities of GEMS-TA and the Auditors I The responsibility for the preparation of the accounts including adequate I disclosure is that of GEM-I A Project Management. The responsibility includes designing, implementing and maintaining internal control relevant to the I preparation and fair presentation of the Project financial statements that are free from material misstatement whether due to fraud or error, selecting and I Independent Auditors Report On The 2018 Financial Statements 1 E ------------~ '"" L I applying appropriate accounting policies and making accounting estimates that I are reasonable in the circumstances. I Our responsibility as Auditors is to express an independent opinion on the I Project Financial Statement based on our audit. I Opinion In our opinion the financial statements are prepared in accordance with the laws I and regulations. The accompanying financial statements present fairly in all I material respects the financial position of the GEM-I A project as at 31 December 2018 and its financial position and cash flow the year then ended in accordance I with the Project Agreement Credit No. 5896-GH and the stated accounting policies in Note 1 of the project financial statements. I I Basis for Opinion We conducted our audit in accordance with the International Standards of I Supreme Audit Institutions (ISSAI's) and IDA Guidelines on project audits. Those standards require that we comply with the ethical requirements plan and I perform the audit to obtain reasonable assurance whether the Project Financial I Statements are free from material misstatements. I Our audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the Project Financial Statements. I I I Independent Auditors Report On The 2018 Financial Statements 2 I L I It also includes evaluating the appropriateness of accounting policies used, the I reasonableness of accounting estimates made by the Project Management Unit as well as evaluating the overall presentation of the Financial Statements. I I We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. I I I SAMUEL NI DARTEY LAMPTEY DIRECTOR OF AUDIT for. AUDITOR-GENERAL, GHANA I I I I I I I I I I 3 Independent Auditors Report On The 2018 Financial Statements I 1· GHANA ECONOMIC MANAGEMENT STRENGTHENING TECHNICAL ASSISTANCE I (GEMS-TA) PROJECT I INTRODUCTION 1. The Project Background: The Project Development Objective of the Ghana Economic I Management Strengthening Technical Assistance (GEMS-TA) Project is to strengthen Government of Ghana's (GOG's) institutional capacity for economic management. This will be achieved by I improving the government's taxpayer database and enhancing capacity for the management of external debt, public investments and state-owned enterprises. It will be implemented over a three-year period I (2017 - 2020) IDA financing through the following four complimenting components: 1. Strengthening Ghana Revenue Authority's business intelligence systems; I 11. Strengthening Debt Management; 111. Strengthening Capacity for Public Investment Management (PIM); and I iv. Improving the Governance of State-owned Enterprises (SO Es). I Institutional Arrangements: 2. The Project has been fully mainstreamed within Ministry of Finance (MoF). The ERM-M Division I (World Bank Unit) is the Coordination Unit while PID, DMD, GRA, NDPC, are responsible for the implementation of their respective components. A PSC exercises oversight responsibility and thus I provide strategic guidance to ensure prompt and efficient implementation of the Project. The day-to-day implementation rests with a Project Implementation Team (PIT) - comprising technical officers and I headed by the Project C I Project Beneficiaries 3. The beneficiaries of the Project will be the Ministry of Finance, specifically the Debt Management I Division (DMD), Public Investment Division (PID), External Resources Mobilization Division (ERMD) and Budget Division (BD); the Ghana Revenue Authority (GRA); the National Development Planning I Commission (NDPC); the five targeted SOEs; and select Ministries, Departments and Agencies (MDAs). The ultimate beneficiaries will be the citizens of Ghana, who will benefit from improved economic I benefits of GoG's domestic revenue mobilization, reduced debt burden, prioritized capital spending program, and enhanced performance of SO Es. I I I 1 I l GHANA ECONOMIC MANAGEMENT STRENGTHENING TECHNICAL ASSISTANCE t (GEMS-TA) PROJECT I STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2018 [ Current Assets: Notes 2018 (US$) 2017 (US$) I Bank Balance 8 6,149,038.11 2,145,770.95 I Represented By: Accumulated Fund 9 6,149,038.11 I 2,145,770.95 I I I SAUDA AHMED SEINU PAUL KWESI AGBO I PROJECT COORDINATOR PROJECT ACCOUNTANT I I I I I I I 2 I GHANA ECONOMIC MANAGEMENT STRENGTHENING TECHNICAL ASSISTANCE (GEMS-TA) PROJECT t STATEMENT OF INCOME AND EXPENDITURE FOR THE YEAR ENDED 31 DECEMBER 2018 L Income: Note 2018 (US$) 2017 (US$) Cuml. (US$) I Transfer from IDA 2 6,164,936.08 6.164.936.08 2.773.700.00 2.773.700.00 8,938,636.08 8.938.636.08 I Expenditure: Strengthening Ghana Revenue Authority's Business Intelligence Systems 3 402,533.48 64,491.82 467,024.82 I Strengthening Capacity for Public Debt Management 4 330,609.14 138,304.68 468,912.82 I Strengthening Capacity for Public Investment Management 5 426,618.23 165,963.86 592,582.09 I Strengthening the Governance of State- Owned Enterprises 6 824,851.97 113,442.47 938,294.44 I Project Management Total Expenditure 7 177,056.10 2.161.668.92 145,726.22 627.929.05 322.782.32 2.789.597 .97 I Income Surplus/(Deficit) 4,003.267.16 2.145.770.95 6.149.038.11 I I I I I I I I 3 I GHANA ECONOMIC MANAGEMENT STRENGTHENING TECHNICAL ASSISTANCE I (GEMS-TA) PROJECT I NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2018 I Notes 1. Accounting Policies: These are various policies and principles use in preparing the financial statements. I a. Basis of accounting -The financial statements have been prepared under the cash accounting basis. I 1. 11. Income is recognized when cash is received. Expenditure is recognized when goods and services are received and paid for. I The financial statements have been prepared under the historical cost convention. b. Presentation of Financial Statements - The Statement of Financial Position and Financial I Performance are denominated in the United States Dollar (US$). c. Non-Current Assets - All non-current assets acquired using project funds have been stated at I the actual contractual cost of procurement. d. Depreciation - It is the policy of the MOF not to depreciate its non-current assets acquired I under the project. No depreciation has therefore been charged in the financial statements. I e. Foreign Currency Translation - Transactions denominated in currencies other than United States (US$) Dollar are translated into US Dollar and recorded at the rate of exchange ruling I on the date of transfers of funds from the dollar Account and same rate for assets and liabilities. 2. Receipts from Designated Accounts I This represents total fund received from IDA 2018(US$) 2017(US$) Cuml.(US$) a. Advance from IDA 6,164,936.08 2,773,700.00 8,938,636.08 I Total 6.164.936.08 2.773.700.00 8.938.636.08 3. Strengthening Capacity for Revenue I Management This represents total fund expended on the project as follows: I Goods 2018(US$) 4,155.71 2017(US$) 20,440.83 Cuml. (US$) 24,596.54 Consultancies 394,244.19 3,393.34 397,637.53 I Non-Consultancies Total 4,133.58 402.533.48 40,657.65 64.491.82 44,791.23 467.025.30 I I 4 I \ GHANA ECONOMIC MANAGEMENT STRENGTHENING TECHNICAL ASSISTANCE I (GEMS-TA) PROJECT I 4. Strengthening Capacity for Public Debt Management This represents total fund disbursed on the project as follows: 2018(US$) 2017(US$) Cuml.(US$) I Goods Consultancies 21,195.03 177,652.94 106,576.47 2,091.65 127,771.50 179,744.59 Non-Consultancies 131,761.17 29,636.56 161,397.73 I Total 330.609.14 138.304.68 468.913.82 I 5. Strengthening Capacity for Public Investment Management This represents total fund disbursed on the project as follows: 2018(US$) 2017(US$) Cuml.(US$) I Goods Consultancies 110,039.99 155,673.57 6,414.40 8,524.10 116,454.39 164,197.67 I Non-Consultancies Total 160,904.67 426.618.23 150,075.36 165.013.86 310,980.03 591.632.09 I 6. Strengthening the Governance of State-Owned Enterprises This represents total fund disbursed on the project as follows: 2018(US$) 2017(US$) Cuml.(US$) I Goods Consultancies 6,187.41 211,308.54 22,709.50 15,323.16 28,896.91 226,631.70 I Non-Consultancies Total 607,356.02 824.851.97 76,359.81 114.392.47 683,715.83 939.244.44 I 7. Project Management and Coordination This represents total fund disbursed on the project as follows: 2018(US$) 2017(US$) Cuml.(US$) I Goods Consultancies 19,741.22 13,143.34 63,321.32 168.83 83,062.54 13,312.17 I Non-Consultancies Total 144,171.54 177.056.10 82,236.07 145.726.22 226,407.61 322.782.32 I 8. Bank Balance This represents the reconciled Cash Book balance on the designated US Dollar account with the I 9. Cal Bank. Accumulated Fund: 2017(US$) 2018(US$) I Opening Balance 1 Jan Surplus/(Deficit) for the year 2,145,770.95 2,145,770.95 4,003,267.16 2.145.770.95 6.149.038.11 I 5 I