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Certified Public Accountants
r PUBLIC WORKS PROJECT
INTERNATIONAL DEVELOPMENT ASSOCIATION
GOVERNEMENT-CIVIL-SOCIETY ORGANIZATIONS
PARTNERSHIP PROJECT
FINANCIAL STATEMENT FOR THE PERIOD
1 JULY 2014 To 31 DECEMBER 2015
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PUBLIC WORKS PROJECT
INTERNATIONAL DEVELOPMENT ASSOCIATION
GOVERNEMENT-CIVIL-SOCIETY ORGANIZATIONS PARTNERSHIP PROJECT
FINANCIAL STATEMENT FOR THE PERIOD 1 JULY 2014 To 31 DECEMBER 2015
CONTENTS
Subject Page
Independent Auditor's Report 1
Statement of Sources of Funds and Uses of Funds 2
Statement of Movement of Special Account 3
Statement of Expenditure 4
Note on the Financial Statements 5-8
Page (i)
HLB YEMEN Certified Public Accountants
PUBLIC WORKS PROJECT
INDEPENDENT AUDITORS' REPORT
REPORT ON THE FINANCIAL STATEMENTS
We have audited the accompanying financial statements of the Public Work Project ( GOVERNEMENT-CIVIL-SOCIETY ORGANIZATIONS PARTNERSHIP PROJECT) financed by the World Bank, grant number TFO 15953, which comprise the Statement of Sources of Funds and Expenditure for the period from 1 July 2014 to 31 December 2015, Statement of Movement of Special Account-Central Bank of Yemen- for the period 1 July 2014 to 31 December 2015, and a summary of significant accounting policies and other explanatory notes.
MANAGEMENT'S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
The Management is responsible for the preparation and fair presentation of these financial statements in accordance with Project agreement and related Yemeni laws and regulations. This responsibility includes designing, implementing and maintaining internal control relevant to the preparation and fair presentation of financial statements that are free from 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. We conducted our audit in accordance with International Standards on Auditing and related Yemeni laws and regulations. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance 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 misstatement 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 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 sources of funds and uses of funds present fairly, in all material respects, the funds for the period from 1 July 2014 to 31 December 2015 in accordance with project agreement.
Ali Al Haj Registered Accountant No. 205 For HLB All Al — Haj & Co Member of HLB International
16 January 2016 Sana'a, Republic of Yemen
Inspired Around the World
A Hai & Haldeman Col Member of
H t, B International hlbyemen.com
Alnoman Tower ,Al-Zubiry Street , Sanaa - Republic of Yemen Telephone: +967-1-408379 Fax: +967-1-210518 E-mal: alhajcons co0y.net.ye Web: www.hlbyemen.com
Re & Halderaiala Cc. is a melte' of MInteinational. A world.wide network of independent accounting firms and business advisers
Page (1)
1,7
4 1 PUBLIC WORKS PROJECT i INTERNATIONAL DEVELOPMENT ASSOCIATION
GOVERNEMENT-CIVIL-SOCIETY ORGANIZATION S PARTNERSHIP PROJECT
Statement of Sources of Funds and Uses of Funds For The Period 1 July 2014 To 31 December 2015
e 2
SOURCES OF FUNDS 150,000
GCSOPP- the first deposit from the World Bank 150,000
TOTAL SOURCES OF FUNDS
EXPENDITURES
Consulting (3) 24,000
Operating Expenditure (4) 79,279
TOTAL USES OF FUNDS 103,279
Excess of sources of funds over expenditures until 31 December 2015 (5) 46,721
The attached notes from (1) to (5) form an integral part of these financial statements.
Page (2)
PUBLIC WORKS PROJECT INTERNATIONAL DEVELOPMENT ASSOCIATION GOVERN EMENT-CIVIL-SOCIETY ORGANIZATION S PARTNERSHIP PROJECT
Statement of Movement of Special Account for the period From 1 July 2014 To 31 December 2015
4 Account Number:
01-1239_10235
Currency:
USD
Name of the bank:
Central Bank of Yemen
Address:
Sana'a, Republic of Yemen.
Project Number:
TF015953
Payment transferred according to the grant contract dated 1 July 2014 150,000
TOTAL 150,000
Deducted from the above:
Expenditure withdrawal during the period 01/07/2014 to 31/12/2015 103,279
Balance as in 31/1212015 46,721
The attached notes (1) to (5) form an integral part of these financial statements.
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Page (3)
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PUBLIC WORKS PROJECT INTERNATIONAL DEVELOPMENT ASSOCIATION
GOVERNEMENT-CIVIL-SOCIETY ORGANIZATION S PARTNERSHIP PROJECT
Statement of Expenditure for the period Froth 1 Jury 2014 To 31 December 2015
Consulting
Operating Expenses
24,000
79,279
TOTAL
103,279
The attached notes (1) to (5) form an integral part of these financial statements.
Page (4)
PUBLIC WORKS PROJECT
INTERNATIONAL DEVELOPMENT ASSOCIATION
GOVERNEMENT-CIVIL-SOCIETY ORGANIZATION S PARTNERSHIP PROJECT
Notes to the Financial Report For The Period 1 July 2014 To 31 December 2015
Public Works Projects in brief:
The PWP was established by law no. (36) of 1996 following the ratification of the development loan agreement signed between our country and the International Development Association (World Bank) and the then Prime Minister also issued resolution no. (3) of 1996 concerning the formation of the PWP management committee and definition of its main
tasks.
The establishment of PWP came as a critical need to treat the negative impacts resulting from the economic, financial and administrative adjustment program considered as a new model to prepare projects and their controls and the
method of allocation and procedures of implementation.
PWP objectives:
The PWP is considered one of the principal components of the social safety net targeting alleviation of the side effects
resulting from the implementation of the economic, financial and administrative adjustment program adopted by the
Yemen Government since March 1995. The PWP was incorporated to achieve the following objectives:
Create the greatest number of job opportunities for the skilled and unskilled manpower Provide basic services to the most needy categories of the society
Improve the economic and environmental situations of the poor categories of the society Advance the professions of the local contracting and engineering consultancies professions
Promote the popular participation in the development process
GOVERNEMENT-CIVIL-SOCIETY ORGANIZATION S PARTNERSHIP PROJECT
Project description The objective of the project is to enhance Government-CSOs partnership in the implementation and monitoring of sector
development programs. The project consists of the following parts:
Part 1: Partnership and Mutual Accountability for Improved Participation and Inclusion
Providing support to, and facilitating the activities of the Government and CSOs to develop a Government-CSOs Partnership Mutual Accountability Framework (PMAF) as a joint mechanism for effective collaboration and partnership,
that would include: 1. Organizing parallel dialogue sessions between line ministries and sector mapped CSOs;
2. Identifying complementarities and overlaps between stakeholder groups to find out points of convergence and
synergy for collaboration; 3. Identifying inherent weaknesses in terms of participation and accountability in the targeted sectors;
4. Formulating draft PMAF, based on the outcome of the parallel dialogue sessions;
5. Holding a meeting of all the participants to discuss and validate the draft PMAF; and 6. Disseminating the validated PMAF and its submission to MoPIC.
Part 2: Sector Action Plans for Improved Development Results and Capacity Building Activities Providing support to line ministries and CSOs to develop result-oriented action plans in selected sectors for a
collaborative implementation and monitoring of sector development projects on a pilot basis, that would include: 1. Formulating Sector Action Plans in selected sectors be CSOs and line ministries collaboratively as a pilot
initiative, based on the synergies emerged in the parallel sector dialogue sessions;
2. Institutionalizing the PMAF action plan within ongoing Government and Donor supported program for the
sustainability of the Government-CSOs partnership; and
Page (5)
PUBLIC WORKS PROJECT
INTERNATIONAL DEVELOPMENT ASSOCIATION
GOVERNEMENT-CIVIL-SOCIETY ORGANIZATION S PARTNERSHIP PROJECT
Notes to the Financial Report For The Period 1 July 2014 To 31 December 2015
3. Building the capacity of CSOs through action learning and training on the approach and concept of social accountability of implement and monitor inclusive development projects and facilitating participation of local communities and marginalized groups.
Part 3: Project Management, Monitoring and Evaluation Strengthening the Recipient's capacity for project management, monitoring and evaluation through provision of
consultant's services, including audit, training and financing of Incremental Operating Costs.
Project Components
1. The project has four components (1) Knowledge for Development Partnership 500,000 (Bank-executed), (2) Partnership and Mutual Accountability for Improved Participation and Inclusion US$ 520,000 (Recipient-executed), (3) US$- 480,000 - Sector Action Plans for improved Development Results and Capacity Building Activities
(Recipient-executed). These will provide them with the space and opportunity to exchange views on sector development issues, develop a shared vision and understanding of sector priorities, and jointly_ identify their
complementarities and overlaps. Based on the dialogue outcomes, specific results oriented sector action plans will
be developed in select sectors on a pilot basis. The dialogue will build on the findings and operational recommendations of the FY13 CSO Mapping and Capacity Assessment study that will inform both the proposed project as well as the planned Civil Society Support Project.
2. The Accounting Policies
The accounting policies followed by the Project are as follows:-
A. Preparation of the Financial Statements
The financial statements has been prepared for the period from 1'112014 to 31/ 12! 2015 which includes implementing project activities that mentioned in the above term No. (1).
B.Accounting measurement - The project based on accounting policies community which is known and applicable with rules and accounting principles that followed by similar projects and these important policies are summarized as follows:- - The financial statements are presented in USD and are prepared upon the principle of the cash basis except the accrued balances that are in other currencies which are evaluated according to the exchange rate of the supplied batch.
C.The Accounting Regulation
The financial statements have been prepared according to historical cost principle and by accounting cash basis for the expenses. D. Fixed Assets
I The fixed assets are recorded as expenditure incurred at the date of their purchase. E. Exe
Project expenditures are recorded on the date of its disbursement and on the date of receipt of the goods or contracted services.
Page (6)
.'4=9
PUBLIC WORKS PROJECT
INTERNATIONAL DEVELOPMENT ASSOCIATION GOVERNEMENT-CIVIL-SOCIETY ORGANIZATION S PARTNERSHIP PROJECT
Notes to the Financial Report For The Period 1 July 2014 To 31 December 2015
E. Foreign Currencies
The Project records all its transactions in US Dollars. and for the other transactions which are made in other currencies have been recorded according to the value of the currency on the date of transaction.
G. The Cash and equivalent cash
The cash and equivalent cash is represented in cash in hand, cash at banks and advances which is convertible to known amounts from cash and which is exposed to non-material risks in terms of changes in the value.
Financial risk management
Financial instruments and risk management
This note shows related information exposing the project to the types of risks through use of financial instruments and the project uses include its normal activity some initial financial instruments such as cash and equivalent cash and as a result, it is exposed to risks referred a below.
Foreign currency risk
The project is exposed to the foreign currency risk resulting the transactions that make in other currencies than U.S dollar and through use the financial instruments derivatives, the project could reduce its exposure from fluctuations in exchange rates of foreign currencies and the project must be careful to keep the net risk exposure of foreign currency always at a reasonable level by dealing with currencies not fluctuate substantially adverse dollar.
Page (7)
Consulting services
Auditing fees
22,200
1,800
24,000
Permanent employees salary 79,279
79,279 79,279
3-CONSULTING SERVICES
4-OPERATING EXPENSES 100% insisatsV=:;1-A1,174-
PUBLIC WORKS PROJECT
INTERNATIONAL DEVELOPMENT ASSOCIATION GOVERNEMENT-CIVIL-SOCIETY ORGANIZATION S PARTNERSHIP PROJECT
Notes to the Financial Report (Continued) For The Period 1 July 2014 To 31 December 2015
5-EXCESS
Excess on cash is as follows:
Cash on bank
46,721
TOTAL EXCESS
46,721
Page (8)
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