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BAUCHI STATE GOVERNMENT OF NIGERIABAUCHI STATE WATER AND SEWERAGE CORPORATION
THIRD NATIONAL URBAN WATER SECTOR REFORM PROJECT (NUWSRP3)(World Bank Assisted)
No. 15, Gombe Road, G.R.A., BauchiTel: +234 80 3284 9137
E-mail: aminugital@yahoo.co.uk
BS/NUWSRP3/GEN/S/09/V.1/802 2 nd June, 2017
The Task Team Leader,National Urban Water Sector Reform Project (NUWSRP3),World Bank Country Office,Abuja.
ATTENTION: Financial Management Unit,World Bank Country Office,Abuja.
FORWARDING OF 2016 AUDIT REPORT IN RESPECT OF NUWSRP3 -BAUCHI
Find attached two sets of REPORTS AND FINANCIAL STATEMENTS FORTHE YEAR ENDED 3 1ST DECEMBER, 2016 EXTERNAL AUDITORS'REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS FOR THEYEAR ENDED 3 1ST DECEMBER, 2016 in respect of the NUWSRP3 Bauchi.The distribution of the Reports is: one set for the TTL NUWSRP3 and oneset for the Financial Management Unit of the World Bank Country Office.
2. It is hoped this meets your requirement, please.
Engr.nmin liyu GitalProject Coordinator
All Correspondences to t e Addressed to the Project Coordinator
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BAUCHI STATE WORLD BANK ASSISTED
THIRD NATIONAL URBAN WATER SECTOR REFORM PROJECTREPORTS AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER, 2016
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BAUCHI STATE WORLD BANK ASSISTEDTHIRD NATIONAL URBAN WATER SECTOR REFORM PROJECT
REPORTS AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER, 2016
CONTENTS PAGE
Corporate information 3
Auditors' report 4
Accounting policies 6
Balance sheet 7
Statement of sources and uses of funds 8
Notes to the financial statements 9
Special Account Activity Statements 10
Statement of Special Account 11
Summary of statement of expenditures 12
IDA Disbursement 13
- Page 3 -
BAUCHI STATE WORLD BANK ASSISTEDTHIRD NATIONAL URBAN WATER SECTOR REFORM PROJECT
CORPORATE INFORMATION
Project Implementation Unit: Eng. Aminu Aliyu Gital - Project Coordinator
Ibrahim M Abubakar - Project Accountant
Shehu Yahaya Jalam - CSMO
Abubakar Aliyu Fate - M&E Officer
Engr.Abdulmumin Mailafiya - W&SO
Bala Ibrahim Dan Alfa - Procurement Officer
Muhammed Suleiman Darazo - Internal Auditor
Idris D. Bello - Environmental Safeguard
Aliyu Musa Dambam - Social Safeguard Officer
Shehu A. Kobi - Head PFMU
Project Office: Bauchi State Water and Sewage Corporation,Third National Urban water sector reform projectBauchi,Nigeria.
IDA Credit NQ: 54160 UNI
Bankers: Diamond Bank Plc
Auditors: Baker Tilly Nigeria,Chartered Accountants,Zion House,No. 16, Alaafin Avenue,Opposite Ratcon Construction,Oluyole Industrial Estate,Ibadan, Nigeria.
BAKERTILLYNIGERIA - Page 4-
Chartered Accountants
Zion House, 46 Alaafin AvenueOluyole Industrial EstateP 0. Box 36808lbadan, Nigeria
Tel: +234 (0) 8111474671+234 (0) 8131826784
E-mail: btnib@bakertillynigeria.comREPORT OF THE INDEPENDENT AUDIAWt: www.bakertillynigeria.com
ON THE FINANCIAL STATEMENTSOF THE BAUCHI STATE WORLD BANK ASSISTEDTHIRD NATIONAL URBAN WATER SECTOR REFORM PROJECT
FOR THE YEAR ENDED 31 DECEMBER, 2016CREDIT N2 54160 UNI
We have audited the accompanying financial statements of the World Bank Assisted NUWSRP 3Project for the year ended 31 December, 2016 as set out on pages 7 to 13 and prepared on the basis ofthe accounting policies on page 6. The project is financed by the IDA Credit Number 54160 UNI.Respective responsibilities of the Project Management and AuditorsThe Project Implementation Unit coordinates the activities of the project and is as such responsible forthe preparation of the financial statements. It is our responsibility as auditors to express anindependent opinion, based on our audit, on the financial statements and to report our opinion to you.Basis of opinion
We have conducted our audit in accordance with International Standard on Auditing and World Bankguidelines. These Standards and World Bank guidelines require that we plan and perform the audit toobtain reasonable assurance that the financial statements are free of material misstatement. An auditincludes examination, on a test basis of evidence relevant to the amounts and disclosures in thefinancial statements. It also includes an assessment of the estimates and judgements made by theproject officers in the preparation of the financial statements, and whether the accounting policies areappropriate to the project circumstances, consistently applied and adequately disclosed.
We planned and performed our audit so as to obtain all the information and explanations, which weconsidered necessary in order to provide us with sufficient evidence to give reasonable assurance thatthe financial statements are free of material misstatements. In forming our opinion, we also evaluatedthe overall adequacy of the presentation of the financial statements.Opinion
In our opinion, donor funds from World Bank have been provided and used in accordance with theconditions of the loan agreement with due attention to economy and efficiency and only for thepurposes for which the fund was provided during the year under review.Counterpart funds have been provided during the year under review in accordance with the conditionsof the World Bank.
Goods and services financed have been procured in accordance with the Development CreditAgreement and Disbursement Letters.BAK ERTi necessary supporting documents, records and accounts have been kept in respect of all projectR IRNAll I iAQvities, with clear linkages between the books of account and reports presented to the Governmentand World Bank, including expenditure reported via Summary Report.
The Designated Accounts have been maintained in accordance with the provisions of the- Page 5 -Development Credit Agreement and Disbursement Letter.
The Project financial statements have been prepared in accordance with generally accepted accountingprinciples and practices and relevant World Bank guidelines, and give a true and fair view of thefinancial position of the NUWSRP 3 Project as at 31 December, 2016 and for the resources andexpenditure for the financial year then ended.The accounting and overall internal control system to monitor expenditure and other financialtransactions are adequate, effective and ensured safe custody ofproject financed assets.The ledgers are maintained as required by the World Bank as well as a fixed assets register. TheProject complied with Article IV financial covenant of the Loan Agreement.
Akobi Marcus Kayode FCAFRC/2013/ICAN/0000
0 00 3 48 6for: BAKER TILLY NIGERIACHARTERED ACCOUNTANTS
IBADAN, Nigeria2 June, 2017
- Page 6 -
BAUCHI STATE WORLD BANK ASSISTEDTHIRD NATIONAL URBAN WATER SECTOR REFORM PROJECT
STATEMENT OF ACCOUNTING POLICIES
The following are the significant accounting policies followed in recording transactions and inreporting the results of operations of the Project:
I. Accounting convention
The accounts are prepared under the historical cost convention.
2. Basis of accounting
The cash basis was adopted in the preparation of Project's Financial Statements.3. Fixed assets and depreciation
(a) Fixed assets are those intended for use over a YEAR exceeding one accounting yearand whose value per unit is not below N100,000.(b) Items with respective unit costs below N100,000 are classified as "Special ProjectAssets" and included in a Special Project Assets Register.
(c) In applying the capitalization policy, all related (landed) costs and installation costs areincluded in the acquisition cost of the fixed asset item.
(d) Capital expenditure on contract works will be included on the basis of valuationcertificates including retention.
(e) No depreciation is charged on the project's fixed assets as there are no revenues to bematched against such charges.
4. Inventory
Inventory is valued at the lower of cost and net realizable value.
5. Debtors
Debtors are stated after making specific provision for debts considered doubtful of recovery.6. Foreign currency
Income and expenditure items in foreign currencies are recorded in Naira at the rates ruling atthe transaction dates. Assets and liabilities expressed in foreign currencies are converted toNaira at the rates ruling at the balance sheet date and gains or losses on such conversions arecredited or charged to reserve in the year which they arise.
- Page 7 -
BAUCHI STATE WORLD BANK ASSISTEDTHIRD NATIONAL URBAN WATER SECTOR REFORM PROJECT
BALANCE SHEET AS AT 31 DECEMBER, 2016
Notes2016 2015
Fixed asset 2 30,857,052 -
Investment cost 3 40,386,645
Incremental operating costs 4 23,771,626 1,886,630
Cash and bank balances 5 1,010,023,748 794,917,983
Net current assets 1,105,039,071 796,804,613
1,105,039,071 796,804,613
Financed by:
IDA Special account 5 885,141,575 796,000,000
State government contribution 6 216,883,804 -
Other Income 8 3,013,692 804,613
1,105,039,071 796,804,613
PROJECT COORDINATOR ...... ..... ... .. ....... ....
HEAD - PFMU .... ........
The accounting policies on page 6 and the notes on pages 10 and 11 form part of these financial statements.
- Page 8 -
BAUCHI STATE WORLD BANK ASSISTEDTHIRD NATIONAL URBAN WATER SECTOR REFORM PROJECT
STATEMENT OF SOURCES AND USES OF FUNDSFOR THE YEAR ENDED 31 DECEMBER, 2016
- IN LOCAL CURRENCY (N)
Cash receiptsIDA 89,141,575State government counterpart 216,883,804Other income 2,209,079Total funding 308,234,458
Expenditure by categories:
AssetsMotorcycles and Tricycles 3,243,240Office equipment 6,112,600Office furniture and fittings 5,680,800ICT equipment 2,566,200
17,602,840Works 13,254,212
30,857,052Investment costConsultancy 25,923,128Training 14,463,517
40,386,645
Incremental operating costTransport and travelling 12,412,206Advertisement 4,608,200Repairs and maintenance 558,175Printing and stationeries 384,760Bank charges 565,961PFMU 1,628,550Entertainment 523,325Communication expenses 808,164Office and general expenses 395,655Receipts less expenditure 21,884,996
Cash and cash equivalent as at 1/1/2016 794,917,983Cash and cash equivalent at 31/12/2016 1,010,023,748
Represented by:Closing cash and bank balances:Counterpart fund 208,745,154Special Account 797,844,246Draw down Account 729,355Interest Account 2,704,993
1,010,023,748
- Page 9 -
BAUCHI STATE WORLD BANK ASSISTEDTHIRD NATIONAL URBAN WATER SECTOR REFORM PROJECT
SPECIAL ACCOUNT ACTIVITY STATEMENTAS AT 31 DECEMBER, 2016
(US $ ACCOUNT) A/C N2 0045437547 - DIAMOND BANK PLC
Year 2016
$1. Cumulative advances to the end of current
reporting year 4,303,258.55
2. Cumulative expenditure to end of last reporting year 20,235.89
3. Outstanding advances to be accounted (line I minus line 2) -
4,283,022.66
4. Opening SA balance at the beginning of reporting year 3,983,794.03
5. Add/Subtract: Cumulative adjustments (if any)
6. Advances from World Bank during reporting year 303,258.55
4,287,052.58
7. Outstanding advances to be accounted for(add lines 4 and 6)
8. Closing SA balance at end of current reporting year(as of December 31, 2016) 3,980,122.45
9. Add/Subtract: Cumulative adjustment -
10. Expenditure for current reporting year 303,258.55
11. Add Lines 9 and 10
12. Activity closing balance (December 31, 2016) 3,980,122.45
13. Difference (if any) less interest on SA 9,498.61
14. Actual SA balance 3,970,623.84
- Page 10 -
BAUCHI STATE WORLD BANK ASSISTEDTHIRD NATIONAL URBAN WATER SECTOR REFORM PROJECT
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER, 2016
1. The Project
The Federal Republic of Nigeria entered into a credit agreement with International DevelopmentAssociation. The Project Credit Number 54160 UNI became effective in Bauchi State in February,2016. The project development objective are to increase access to improved water supply services inBauchi , to improve the financial viability of existing water utilities in the state and to increase theinvestment planning capacity of the State.
For the year Cumulative Cumulative2016 2016 balance 2015
2. Fixed AssetsGoods 17,602,840 17,602,840Works 1,4212 1,254212
30,857,052 30,857,052
3. Investment costConsultancy 25,923,128 25,923,128Training .14,463,517 14,463,517 -
40,386,645 40,386,645
4. Incremental operating costBank charges 565,961 565,961Transport and travelling 12,412,207 12,412,206Advertisement 4,608,200 6,494,830 1,886,630Repairs and maintenance of vehicle & Gen 558,175 558,175 -Printing and stationeries 384,760 384,760 -PFMU 1,628,550 1,628,550 -Entertainment 523,325 523,325 -Telephone, internet and postages 808,164 808,164Office and general expenses 995,655 395,655 _
21,884,996 23,771,626 1,886,630
5. Bank and cash balancesCounterpart fund - 208,745,154 -Special Account - 797,844,246 792,858,316Drawdown account - 729,355 1,700,568Interest Account 2,704,993
- 1,010,023,748 794,917,983
6. State government contribution 216,883,804 216,883,804
- Page 11 -
For the year Cumulative Cumulative2016 2016 balance 2015
N N N47. IDA Special account
Balance at 1 January, 2016 - 796,000,000 -Drawings during the year 89,141,575 89,141,575 796,000,000Balance as at 31 December, 2016 89,141,575 885,141,575 796,000,000
8. Other IncomeBalance as at 1 Jan 2016Sales of tender document 210,000 210,000 -Interest on Account 1,969,555 2,773,668 804,113Miscellaneous Income 29,524 500
2,209,079 3,013,692 804,613
- Page 12 -
BAUCHI STATE WORLD BANK ASSISTEDTHIRD NATIONAL URBAN WATER SECTOR REFORM PROJECT
STATEMENT OF SPECIAL ACCOUNTAS AT 31 DECEMBER, 2016
ACCOUNT N2 0045437547 - BANK: DIAMOND BANK PLC
$Total amount received from IDA 4,303,000
Add: Interest received 9,498.61
4,312,757.16
Less:
Withdrawal applications based on eligible expenditure 332,634.71
Balance as at 31 December, 2016 3,980,122.45
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- Page 14 -
BAUCHI STATE WORLD BANK ASSISTEDTHIRD NATIONAL URBAN WATER SECTOR REFORM PROJECT
LIST OF ADDITIONS TO FIXED ASSETS DURING THE YEAR
Date Name of the suppliers Transaction Details Amount
OFFICE EQUIPMENT N
30-06-2016 Adaya International Laptop computers (9) 1,458,000.0030-06-2016 Adaya International Desk Computer (3) 607,500.0030-06-2016 Adaya International Printers (2) 189,000.0030-06-2016 Adaya International Colour Printer 95,650.0030-06-2016 Adaya International Scanner 567,000.0030-06-2016 Adaya International External Hard Drive 218,700.0030-06-2016 Adaya International UPS (3) 48,600.0030-06-2016 Adaya International Cell Phone (10) 472,500.0030-06-2016 Adaya International Digital Camera (2) 75,600.0030-06-2016 Adaya International Air Conditioners (3) 1,512,000.0030-06-2016 Adaya International Refrigerators (6) 348,300.0030-06-2016 Adaya International Heavy duty Photocopier (1) 405,000.0030-06-2016 Adaya International Cam Coder (1) 114,750.00
6,112,600.00
FURNITURE & FITTING
30-06-2016 Adaya International Curtains (30) 162,000.0030-06-2016 Adaya International Metallic File Cabinet (9) 364,500.0030-06-2016 Adaya International Office chair senior Executive (1) 94,500.0030-06-2016 Adaya International Executive Table 3 in 1 (1) 108,000.0030-06-2016 Adaya International Visitor Chairs (20) 405,000.0030-06-2016 Adaya International Executive Table L Shape 2 in 1 (11) 965,250.0030-06-2016 Adaya International Jnr Executive Chairs (11) 371,250.0030-06-2016 Adaya International Waiting Chair (2) 67,500.0030-06-2016 Adaya International Bookshelf 4 Shelves (5) 675,000.0030-06-2016 Adaya International Write/Erazer Board (2) 40,500.0030-06-2016 Adaya International Paper Shredder (2) 243,000.0030-06-2016 Adaya International Notice board 800 x 800 (2) 54,000.0030-06-2016 Adaya International Conference chairs (20) 945,000.0030-06-2016 Adaya International Fire proof Filinf Cabinet (3) 729.000.00
5,224,500.00
ICT
8/7/2016 Y B Ismail ICT All in one Video/Audio conferencingsolution 997,000.00
8/7/2016 Y B Ismail ICT LED Smart Tv (IFL cable (30)D -Link wireless) 724,500.00
8/7/2016 Y B Ismail ICT Gigabits Router 195,000.008/7/2016 Y B Ismail ICT Band with 5 nibps Dedicated ban width 300,000.00
2,216,500.00
MOTOR VEHICLES
28-6-2016 El-Medas Integrated Nig Ltd Tvs King GS Tricycles (3) 2,296,800.0028-6-2016 El-Medas Integrated Nig Ltd 3 Bajaj Motorcycles 792,000.00
3,088,800.0016,642,400.00
- Page 15 -
BAUCHI STATE WORLD BANK ASSISTEDTHIRD NATIONAL URBAN WATER SECTOR REFORM PROJECT
IDA DISBURSEMENT FOR THEYEAR ENDED 31 DECEMBER, 2016
Amount AmountWA Description Requested paid
N N002 Reimbursement 36,357.48 36,357.48
003 Reimbursement 123,328.36 123,328.36
004 Reimbursement 78,263.38 78,263.38
005 Reimbursement 40,825.46 40,825.46
006 Reimbursement 14,557.95 14,557.95
007 Reimbursement 9,924.92 9,925.92
303,258.55 303,258.55
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