Grant Number: TF098979

Central Statistics Agency(CSA)

Project: The Ethiopian Rural Socioeconomic Survey (ERSS)Project

Grant Number: TF098979

Auditors' Report and Accounts

For the Year Ended 7 July 2016

A.A. Bromhead& Co. Chartered Accountants and UK Registered AuditorP.O. Box 709, Addis Ababa, Ethiopia, Telephone 251 11 552 42 85 /552 45 58, Fax 251 11 552 45 76,Email:- [email protected]

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Auditors' Report to the Central Statistics Agency (CSA)Ethiopian Rural Socioeconomic Survey (ERSS) Project

We have audited the accompanying financial statements comprising a balance sheet, statement ofreceipts and expenditures and additional disclosure notes of the Central Statistics Agency (CSA) -Ethiopian Rural Socioeconomic Survey (ERSS) Project for the year ended 7 July 2016 on pages 1 to6, which have been prepared under the historical cost convention and the accounting policies set outon page 4.

These statements are the responsibility of the Central Statistics Agency (CSA) - Ethiopian RuralSocioeconomic Survey (ERSS) Project. Our responsibility is to express our opinion thereon based onour audit.

We conducted our audit in accordance with International Standards on Auditing (ISA) promulgatedby the International Federation of Accountants (IFAC). These standards require that we plan andperform the audit to obtain reasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting theamounts and disclosures in the financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management as well as evaluating the overallstatement presentation.

The Central Statistics Agency (CSA) - Ethiopian Rural Socioeconomic Survey (ERSS) Projectmanagement's policy is to prepare the accompanying statements on the modified cash basis inconformity with the accounting policy of the Government of the Federal Democratic Republic ofEthiopia. On this basis, cash receipts are recognized when received and expenditures are recognizedwhen incurred.

We believe our audit provides a reasonable basis for our opinion.

- Value Added Tax (VAT) of 15% paid on procurement of goods and services is included in theproject expenditures; whereas the 'Standard Conditions for Grants made by the World Bank',Section 3.07 states that the Grant may not be withdrawn to pay for Taxes.

- A training cost incurred by the Hawassa Branch Office is understated by Br.1, 138,525.70.Consequently, the fund balance is overstated by the same amount.

QUALIFIED OPINION

In our opinion, except for the effects of the matters indicated in the foregoing paragraph above, thefinancial statements present fairly the financial position at 7 July 2016 and the receipts andexpenditures of the Central Statistics Agency (CSA) - Ethiopian Rural Socioeconomic Survey(ERSS) Project for the year then ended in accordance with the accounting policies set out on page 4.

A. BROMHEAD & Co.A.A. Bromhead & Co. tered AccountantsChartered Accountants and 71 Addis AbabaUK Registered Auditor _ _^_^ 16 May 2017

A.A. Bronhead& Co. Chartered Accountants and UK Registered AuditorP.O. Box 709, Addis Ababa, Ethiopia, Telephone 251 11 552 42 85 /552 45 58, Fax 251 11 552 45 76,

Email:- [email protected]

Central Statistics Agency (CSA)Ethiopian Rural Socioeconomic Survey (ERSS) ProjectBalance SheetAt 7 July 2016

Currency: Ethiopian Birr

Notes 2016 2015

Current Assets

Advances 3 9,029,336.30 1,242,586.77Cash and bank balances 4 3,302,739.92 1,445,210.97

12,332,076.22 2,687,797.74

Current Liabilities

Creditors and accruals 5 10,541,946.38 195,580.75

Net Current Assets 1,17224

Represented By:

Fund balance 6 L20292

A.A. Bromhead& Co. Chartered Accountants and UK Registered AuditorP.O. Box 709, Addis Ababa, Ethiopia, Telephone 251 11 552 42 85 /552 45 58, Fax 251 11 552 45 76,


A. A. BROMHEAD aChartered Accountants

P. 0. Bor 709ADDIS AXiAA

2

Central Statistics Agency (CSA)Ethiopian Rural Socioeconomic Survey (ERSS) ProjectStatement of Receipts and ExpendituresFor the year ended 7 July 2016


Receipts Notes 2016 2015

Grants from World Bank 7 8,906,133.65 3,232,658.54Gain on exchange rates 19,251.69 41,265.18

8,925,385.34 3,273,923.72Expenditures

Per diems 2,240,839.96 778,178.89Local trainings 5,560,300.30 36,784.43Fuel and lubricants 96,834.31 178,847.24Plant, machineries and equipment 554,770.47

Other operating costs 1,729,497.92 1.205,596.06

9,627,472.49 2,754,177.09

Excess of Receipts over Expenditures 6 M2,087,15)7

A.A. Bronhead& Co. CharteredAccountants and UK Registered AuditorP.O. Box 709, Addis Ababa, Ethiopia, Telephone 251 11 552 42 85 /552 45 58, Fax 251 11 552 45 76,Email:- [email protected]

A. BROMHEAD & Co.Chartered Accountants

P. O. Box 70AMBIs AMABA

3

Central Statistics Agency (CSA)Ethiopian Rural Socioeconomic Survey (ERSS) ProjectSummary of Activities in the Designated AccountsAt 7 July 2016

Currency: United States Dollar (USD)

Account number: 0100451300018 (0261501480100)Depository bank: National Bank of EthiopiaAddress: Addis Ababa, Ethiopia

Notes 2016 2015

At 8 July 2015 37,380.36 591.46

Add:Replenishments 7,8 417078.58 162,101.40

454894 12628Less:Withdrawals (385,459.52) (125,000.00)Bank charges (312.50

(38559.52 (2312.50

At 7 July 2016

A.A. Bromhead& Co. Chartered Accountants and UK Registered AuditorP.O. Box 709, Addis Ababa, Ethiopia, Telephone 251 11 552 42 85 /552 45 58, Fax 251 11 552 45 76,Email:- [email protected] A. A. BROMHEAD C.

Chartered AccountantsP. 0. Box 709

AVODk ADANA

4

Central Statistics Agency (CSA)Ethiopian Rural Socioeconomic Survey (ERSS) ProjectNotes to the Financial StatementsFor the year ended 7 July 2016

1. Background

The Government of Ethiopia has received financial assistance from the Bill andMelinda Gates Foundation through the World Bank to support the design andimplementation of the Ethiopian Rural Socioeconomic Survey (ERSS) Project underGrant No.TF098979 for Project No.P]25475. The total cost of the project is USD1,832,356.00 (One million eight hundred thirty two thousand three hundred fifty six).The project is implemented by the Central Statistics Agency (CSA).

2. Significant accounting policies

The financial statements are prepared under the historical cost convention using themodified cash basis of accounting.

The principal accounting policies adopted by the project, consistent with those appliedin the preceding years, are stated below

a. Property, plant and equipment

Property, plant and equipment are expensed at the time of purchase.

b. Stocks

Stock items are expensed at the time of purchase.

c. Receipts and expenditures

Receipts and expenditures are recognized when received and incurred,respectively.

d. Exchange rates

Receipts in foreign currencies are converted to Ethiopian Birr at the rulingexchange rates on the dates of transfer to the project's Ethiopian Birr account.Balances in foreign currencies at the closing dates are translated to Ethiopian Birrat the exchange rates prevailing on the reporting dates.

A.A. Bronhead& Co. Chartered Accountants and UK Registered AuditorP.O. Box 709, Addis Ababa, Ethiopia, Telephone 251 11 552 42 85 /552 45 58, Fax 251 11 552 45 76,


A. A. BROMHEAD &Chartered Accountant

P. 0. Bo 70I

ADD15 AMARJ4

5



3. Advances

2016 2015

Advances within Government 8,943,639.80 1,209,274.51Staff advances 84,617.66 33,312.26Sundries 1,078.84 -

9,029,336.30 1.242.586.77

4. Cash and bank balances

Cash at bank 3,302,739.92 1,445.210.97

5. Creditors and accruals

Projects and others 10,403,071.04 57,795.41Withholding tax payable - 10,628.18Value Added Tax 0.04 79,711.41Others 138,875.30 47,445.75

10,541,946.38 1.95,580.75

6. Fund balance

At 8 July 2015 2,492,216.99 1,828,183.58Prior period adjustments - 144,286.78

2,492,216.99 1,972,470.36

Receipts including exchange gain 8,925,385.34 3,273,923.72Expenditure during the year (9,627,472.49) (2,754,177.09)

Excess of receipts over expenditure for the year (702,087.15) 519,746.63

At 7 July 2016 1,790,129,84 2,492.216.99

A.A. Bromhead& Co. Chartered Accountants and UK Registered AuditorP.O. Box 709, Addis Ababa, Ethiopia, Telephone 251 11 552 42 85 /552 45 58, Fax 251 11 552 45 76,


A. A.BROMHEAD & C.Chartered AccountantsP. o. Box 709ADIS AMAMA

6



7. Grants from World Bank

2016 2015USD ETB USD ETB

World Bank grants 417,078.58 B06,1336 -162101.40 3,232.6585

8. Statement of expenditures (SOEs) replenished

2016 2015Withdrawal application USD ETB USD ETB

DSP 16 - 162,101.40 3,232,658.54LSMSO4 61,000.00 1,282,561.60 - -LSMSO2 70,000.00 1,476,552.00 - -LSMSO3 86,083.52 1,824,075.36 - -LSMSO4 130,996.06 2,820,318.97 - -DSP 20 68,999.00 1,502,625.72 - -

417,078.58 ,906A33.65 1J.6J10l4l0 32326&5

9. Comparative figures

Certain comparative figures have been reclassified to facilitate comparison.

A.A. Bronhead& Co. CharteredAccountants and UK Registered AuditorP.O. Box 709, Addis Ababa, Ethiopia, Telephone 251 11 552 42 85 /552 45 58, Fax 251 11 552 45 76.

Email:- [email protected] A. A. BROMHEAD & CO

Chartered Accountants

Documents

Grant Number: TF098979