THE WORLD BANK

SAVING ONE MILLION LIVES PROJECT(FEDERAL MINIS TRY OF HEAL TH)

FINANCIAL STATEMENTSFOR THE YEAR ENDED 3 DECEMBER, 2018

AUDITED BY

OFFICE OF THE AUDITOR-GENERAL FOR THE FEDERATIONPlot 273, Samuel Ademulegun Street,

Central Business District,Abuja.

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SAVING ONE MILLION LIVES PROGRAMMEFOR RESULTS (SOML-PforR)

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 STDECEMBER, 2018

Contents Page

Table of Contents 1

Project Information/Profile 2-7

Report of the Auditors 8-10

Statement of Financial Position 11

Statement of Financial Performance 12

Statement of Cash Flow 13-14

Statement of Changes in Net Assets/Funds 15

Notes to the Financial Statements 16-23

SAVING ONE MILLION LIVES PROGRAMME FOR RESULTS(SOML-PforR)

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31STDECEMBER. 2018

PROGRAMME INFORMATION/PROFILE

The Saving One Million Lives Program for Result (SOML P for R) is a FederalGovernment of Nigeria maternal and Child Health Programme supported by theWorld Bank, which provides incentives, based on achievement of results (healthoutcome) and helps to drive institutional processes needed to achieve theseresults. The program which seeks to catalyse change in the way health businessis done by focusing on results and governance, will be financed by a US$ 500Million international Development Association (IDA) credit to the FederalRepublic of Nigeria over a period of 4 years.

The Program focuses on six important aspects ("Pillars") of maternal newborn and child health (MNCH) that can save lives and two 'enablers'. The pillarsare:

* Improving maternal, new born and child health;

* Improving routine immunisation coverage and achieving Polioeradication;

* Elimination of mother to child transmission of HIV;

* Scaling up access to essential medicines and commodities;

* Malaria control;

* Improving child nutrition. The two enablers are:

* Strengthening logistics and supply chain management and

* Promoting innovation and use of technology to improve health services.

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The SOML Programme involves:

* Re-orientating the discussion of service delivery to results rather than justinputs;

* Clearly anticipating strategic priorities for the FGON and the rest of thehealth sector and strengthening the long term commitment to improvingthe delivery of these high impact interventions.

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SAVING ONE MILLION LIVES PROGRAMME FOR RESULT(SOML P For R)

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER,2018

PROGRAMME INFORMATION/PROFILE

* Establishing a limited set of clear and measurable indicators by which totrack success.

* Strengthening data collection so that these indicators can be measuremore frequently and more robustly.

* Bolstering accountability so that managers and health workers at all levelsare engaged, and incentives provided to achieve better results, and

* Fostering innovations that increase the focus on results and includegreater openness to working with the private sectors.

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SAVING ONE MILLION LIVES PROGRAMME FOR RESULT

(SOML P For R)

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER. 2018

PROGRAMME INFORMATION/PROFILE

MEMBERS OF NATIONAL PROJECT STEERING COMMITTEE

* The Honourable Minister of Health Chairman

* The Honourable Minister of State Vice Chairman

* The Permanent Secretary, FMOH Member

* Director-General, NACA Member

* Director-General, NHIS Member

* Executive Secretary, NPHCDA Member

* National Coordinator, NCDC Member

* Honourable, Commissioners of Health for Membersthe 36 States.

* Representatives of State Ministry of Finance Members

* Development Partners (WHO, DFID, JIDA,UNICEF, UNFPA, BMGF,etc).

PRINCIPAL OFFICERS OF THE PROGRAMME

* Dr. Ibrahim Kana National Programme Manager

* Dr.Ojuolape Sholanke Senior Programme Manager

* Dr.Chima Elewune Senior Programme Officer

* Dr.Dogara Okara Senior Programme Officer

* Dr. Suleiman Jibrin Senior Programme Officer

* Alhaji Musa Ibrahim Programme Accountant

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All the Principal Officers held offices from the inception of the programme inJune till the end of the year with the Exception of Alhaji Ibrahim who fully tookover as the Programme Accountant in August, 2018 towards the end of theyear. The programme had no standing Procurement Officer and InternalAuditor; these activities are carried out using the Ministry organs to carry outthese functions.

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SAVING ONE MILLION LIVES PROGRAMME FOR RESULT(SOML P for R)

PROGRAMME INFORMATION/PROFILE

AUDITORS

Office of the Auditor-General for the FederationPlot 273, Samuel Ademulegun Street,Central Business District,

P.M.B. 28, Garki,Abuja.

Web site: www.oaugf.nge-mail: io oaiffu

PROGRAMME HEAD OFFICE

Saving One Million Lives Programme for Results (SOML-PforR)4, Kukawa Close,Off Ikole Street,

Off Port Harcourt Crescent,Off Gimbiya Street,Area 11, Garki, Abuja.

PROGRAMME FINANCIER

* The World Bank

PROGRAMME IMPLEMENTING AGENCY

Federal Ministry of Health

Federal Secretariat Phase Ill,Ahmadu Bello Way, Central Business District,P.M.B. 083, Garki, Abuja.

BANKER

Central Bank of Nigeria

Central Business District

P.M.B. 0187, Abuja.

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THE AUDITOR-GENERAL FOR THE FEDERATIONAudit House, Plot 273, Samuel Ademulegun Street, Central Business District,

PM.B. I28, Garki - Abuja, Nigeria.

The National Programme Manager,Saving One Million Lives Programme for Result (SOML),Federal Ministry of Health,4 Kukawa Street (beside Royal hospital),Off Ikole Street, off Gimbiya street,Area 11 Garki,Abuja.

AUDIT OF THE SAVING ONE MILLION LIVES PROGRAMME FOR RESULT(SOML) PERFORMED BY THE AUDITOR GENERAL FOR THE FEDERATION

AUDITOR'S REPORT

OpinionI have audited the financial statements of Saving One Million Lives Programme forResult (SOML), for the year ended 3 1st December, 2018. These financial statementscomprise the Statement of Financial Position, Statement of Financial performance,Cashflow Statement and Statement of Net Assets/Equity for the year then ended, anda summary of significant accounting policies and other explanatory information.

In my opinion, the accompanying financial statements present fairly, in all materialrespects, the financial position of the Entity as at 3 1st December, 2018, and of itsfinancial performance and its cash flows for the year then ended in accordance withInternational Public Sector Accounting Standards (IPSAS).

Basis for OpinionI conducted the audit in accordance with International Standards for Supreme AuditInstitutions (ISSAls). My responsibilities under those standards are further describedin the Auditor's Responsibilities for the Audit of the Financial Statements Section of myreport. I am independent of the entity in accordance with the Code of Ethics forSupreme Audit Institutions together with the ethical requirements that are relevant tomy audit of the financial statements and I have fulfilled my other ethical responsibilitiesin accordance with these requirements and the Code of Ethics.

I believe that the audit evidences obtained are sufficient and appropriate to provide abasis for my opinion.

Responsibilities of Management and Those Charged with Governance for theFinancial StatementsManagement is responsible for the preparation and fair presentation of these financialstatements in accordance with IPSAS, and for such internal control as management

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determines is necessary to enable the preparation of financial statements that are freefrom material misstatement, whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing theEntity's_ability to continue as a going concern, disclosing, as applicable, mattersrelated to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the project or to cease operations, or has norealistic alternative but to do so.

Those charged with governance are responsible for overseeing the entity's financialreporting process.

Auditor's Responsibility for the Audit of the Financial StatementsMy objectives is to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement, whether due to fraud orerror, and to issue an auditor's report that includes my opinion. Reasonable assuranceis a high level of assurance, but is not a guarantee that an audit conducted inaccordance with (ISSAls), will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if, individuallyor in the aggregate, they could reasonably be expected to influence the economicdecisions of users taken on the basis of these financial statements.

As part of an audit in accordance with Financial Audit Methodology (FAM), which isconsistent with the Fundamental Auditing Principles (ISSAls 100-999) of theInternational Standards for Supreme Audit Institutions, I exercise professionalscepticism throughout the audit. I also:

* Identify and assess the risks of material misstatement of the financialstatements, whether due to fraud or error, design and perform audit proceduresresponsive to those risks, and obtain audit evidence that is sufficient andappropriate to provide a basis for my opinion. The risk of not detecting amaterial misstatement resulting from fraud is higher than for one resulting fromerror, as fraud may involve collusion, forgery, intentional omissions,misrepresentations, or the override of internal controls.

* Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances, but not forthe purpose of expressing an opinion on the effectiveness of the Entity'sinternal control.

* Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made bymanagement.

* Conclude on the appropriateness of management's use of the going concernbasis of accounting and, based on the audit evidence, obtained, whether amaterial uncertainty exists related to events or conditions that may castsignificant doubt on the Entity's ability to continue as a going concern. If I

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conclude that a material uncertainty exists, I am required to draw attention inmy auditor's report to the related disclosures in the financial statements or, ifsuch disclosures are inadequate, to modify my opinion. My conclusions arebased on the audit evidence obtained up to the date of my auditor's report.However, future events or conditions may cause the Entity to cease to continueas a going concern.

Evaluate the overall presentation, structure and content of the financialstatements, including the disclosures, and whether the financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.

I communicate with those charged with governance regarding, among other matters,the planned scope and timing of the audit and significant audit findings, including anysignificant deficiencies in internal control that I identify during my audit.

I also provide those charged with governance with a statement that I have compliedwith relevant ethical requirements regarding independence, and to communicate withthem all relationships and other matters that may reasonably be brought to bear on myindependence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, I determinethose matters that were of most significance in the audit of the financial statements ofthe current period and are therefore the key audit matters. I describe these matters inmy auditor's report unless law or regulation precludes public disclosure about thematter or, when, in extremely rare circumstances, I determine that a matter should notbe communicated in my report because the adverse consequences of doing so wouldreasonably be expected to outweigh the public interest benefits of suchcommunication.

A. M. AYINE, FCAAuditor-General for the FederationJune 17, 2019

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SAVING ONE MILLION LIVES PROGRAMME FOR RESULT (SOML-PforR)

STATEMENT OF FINANCIAL POSITION ORTEYAEN ED 31S DECEMBER. 2018

2M1 2017N N

ASSETS

CURRENT ASSETS NOTES

Cash at Bank 9 39,214,356,278.65 133,608,480.64

Total Current Assets 39,214,356,278.65 133,608 480.64

NON-CURRENT ASSETS

Acquisition of PPE 342,607,157.50 342,607,157.50

Others - Performance Grant to

States 10 16,240,878,000.00 16.240.878000.00

Total Non-Current Assets 16,583,485,157.50 16,240,878,000.00

Total Assets 55.797,841,436.15 16.717.0"_08.14

LIABILITIES & NET ASSETS

CURRENT LIABILITIES

Payables (Creditors)

Total Current Liabilities

NET ASSETS /FUNDS

Net Assets /Fund 11 55.797.841.436.15 16,717.093,638.14

Total Liabilities & Net

Assets/Funds 55.797.841.436.15 16.717.093.638.14

The Notes to the Financial Statements on Pages 15 - 21 form integral part of these financial statements.

Dr Ibrahim Kana (National Programme Manager) D......... Date:....... . ..

...LIbrahim Musa Tsanyawa(Project Accountant) ........ : ...................... Date: .... ...

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SAVING ONE MILLION LIVES PROGRAMME FOR RESULT (SOML-PforR)

STATEMENT OF FINANCILPROMNEFRTEYA NE 1DCME.21

2018 2017

N N

REVENUE NOTE

Interest Income 2 368,119,409.63 10,079,450.01

Less:

EXPENDITURE

Consultancy Fees 3 548,644,903.00 130,602,764.57

Operating Cost 4 22,556,769.00 31,152,234.50

Office Partitioning 4,491,000.00

R.R.I. Expenses 5 15,192,045,623.02 1,157,269,468.25

PMU Expenses 6 411,840,630.11 308,216,416.90

VAT 749,939.78

WHT 15,078,322.28

FMOH Expenses 7 876,375,565.00 697,497,357.21

Grants to States 8 137,521,350.00

Misc. 124,016,516.24

Total Expenditure (17,313,001.356.37) (2,345,057,503.58)

Surplus / (Deficit) (16,944,881.946.74)

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SAVING ONE MILLION LIVES PROGRAMME FOR RESULT (SOML-PforR)

STATEMENT OF CASH FLOW FOR THE YEAR ENDED 31s DECEMBER. 2018

2018 2017

N N

Cash Flow from Operating Activities

Surplus / Deficit for the year. (16,944,881,946.74) (2,334,978,053.57)

Items not involving movement of cash

Exchange Difference 102,542,959.75 86,618,209.53

Net Cash Flow Operating Activities (16,842,338,986.99) (2,248,359,844.04)

Cash flow from investing activities

Acquisition of PPE (342,607,157.50

Net cash flow from investing -_(342,607,157.50)

Activities

Cash flow from financing activities

IDA Credit 55,923,086,785.00

Net cash flow from financing 55,923,086,785.00 -Activities

Net cash changes for the year 39,080,747,798.01 (2,590,967,001.54)

Cash & Cash equivalent@ Beginning Of the year 133,608,480.64 2,724,575,482.18

Cash and cash equivalent

@End of year 39,214,356,278.65 133,608,480.64

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Reconciliation of cash and cash 2018 2017N N

Equivalent

BIS / CBN USD $ Account 39,174,567,258.30 106,326,388.34

CBN Program Fund Account (N) 39,789,020.35 27,282,092.30

Total 39,214,356,278.65 133,608,480.64

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SAVING ONE MILLION LIVES PROGRAMME FOR RESULT (SOML-PforR)

STATEMENT OF CHANGES IN NET ASSETSIFUNDS FOR THE YEAR ENDED 31 DECEMBER, 2018

IDA CREDIT SURPLUS/DEFICIT EXCHANGE TOTAL

DIFFERENCEN N N N

As at 1/1/18 19,422,474,933.78 (2,885,908,592.46) 180,527,296.77 16,717,093,638.09

Addition 55,923,086,785.00 (16,944,881,946.74) 102,542,959.75 39,080,747,798.06

As at 31/12/18 75.208,040.368.78 (19.830,790,539.20) 283.070.256.57 557971841,436.15

As at 31/12/17 19,42,474,933.78 (2,885,908,592.46) 180,527,296.77 16717093,638.09

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SAVING ONE MILLION LIVES PROGRAMME FOR RESULT (SOML P for R)FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 ST DECEMBER, 2018

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31S DECEMBER, 2018

* STATEMENT OF ACCOUNTING POLICIES

The following is the summary of the significant Accounting Policies adopted in thepreparation of the Project's Financial Statements.

a) Basis of Preparation

The Financial Statements have been prepared under the historical cost convention andin accordance with the Accrual Basis of International Public Sector AccountingStandards (IPSAS)

a) Principal Activities

The programme, which does not have profit motive, is principally engaged in thefollowing activities:

* Improving maternal, newborn and child health

* Improving routine immunisation coverage and achieving Polio eradication;

* Elimination of mother to child transmission of HIV;

* Scaling up access to essential medicines and commodities;

* Malaria control;

* Improving child nutrition. The two enablers are:

* Strengthening logistics and supply chain management and

* Promoting innovation and use of technology to improve health services

a) Funds

All contributions by the Financier were only recognised when received and capitalisedas IDA Credit/Fund. This fund is subsequently increased or reduced by surplus ordeficit from the statement of financial performance.

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a) Recognition of Revenue and Expenditure

Revenue and expenditure were recognised when they become receivable or incurred.

a) Non-Current Assets

Non-current assets acquired during the year (if any) were stated at cost

* Depreciation:

No depreciation was provided on the Non-current Assets

* In the opinion of the Principal Officers, non-current assets will be transferred tothe Implementing Agency - Federal Ministry of Health at the end of the Project'slife, at cost.

a) Reporting/Foreign Currency

The financial statements were prepared using Nigerian Naira as the reportingcurrency.

Transactions in foreign currency were translated at the average rate for the period,while all foreign accounts balances were translated at the rate of exchange at thereporting date; i.e. N306.75/$1.00.

a) Deferred Taxation

No provision was made for deferred taxation because the project is exempted frompayment of income tax by law.

* REVENUE

The total interest income earned on the USD ($) BIS / CBN Account for the periodJanuary to December, 2018 was $1,204,579.22 and converted at the rate ofN350.60/$1 being the CBN average rate as at 31st December, 2018 which amounted toN368,119,409.63, when compared with the total amount of N10,079,450.01 earned in2017, there was an increment of N358,039,959.62. No interest was recorded inrespect of the Programme Fund Account (Naira) maintained with the Central Bank ofNigeria.

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3. CONSULTANCY FEES: 2018 2017

N N

Programme Support Unit 462,301,960.00

Independent Verification Agent 86,342,943.00 130,602,764.57

548,644,903.00 130,602,764.57

4. OPERATING COST

Bank Processing Cost 230,265.00 198,234.50

Printing - 6,840,000.00

Rent 1,134,000.00

Locum Staff 18,735,000.00 18,780,000.00

Advert 3,591,50400 4,200,000.00

22,556,769.00 31.152,234.50

*Locum Staff amount represents the monthly wages paid to the ad-hoc staffs of theProgramme and other day to day running of the Secretariat during the period under review.

5. RAPID RESPONSE INITIATIVE (RRI) EXPENSES 2018 2017

N N

National Strategic health Dev. Plan 26,715,775.00

Cataract Surgery 150,000,000.00 -

NPHCDA - 365,000,000.00

NCDC 60,000,000.00

Evaluation of RRI surgery & screening - 121,121,518.00

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Zamfara emergency relief Intervention 100,000,000.00

Part-payment of reward of National

Champion to Zamfara State 1,067,146,500.00 -

Pre-Medical Outreach 560,985.00 -

Payment of DLI 1.2 to some States 12,729,709,689.00 -

Evaluation of RRI Surgery and

Screening 22,001,250.00

Purchase of Difibrillators

Machines to PHCs 55,339,200.00

Medical assist visit to Benue Flood Victims - 2,297,040.00

Easy Stick Insecticide 32,517,648.00

HIV Test Kit- M/S Ash Biomedicals 1,043,099,316.00 -

HIV Test Kit- M/S Accoun Nig. Ltd. 115,898,860.00 -

HIV Test Kit- Refund to Lagos State 61,160,000.00

ARV/HIV drugs 260,269,252.00

Supervision of cancer Screening 14,120,811.00

Drugs - 119,611,232.25

Consumables __4,991,517.00

15,194,291.125 1,157269.468.25

*An amount of $200,000.00 paid to Lagos State as refund was converted at theclosing

rate of W305.75 ,also an amount of $3,500,000.00 paid to Zamfara State as reward for

best performance was converted at the rate of N304.8999 ruling at the date of

payment while $44,208,162.00 paid to states was converted at the rate of N305.5

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Some States were yet to receive their own.

6. PROGRAMME MONITORING UNIT (PMU)

2018 2017N

Cost of Performance

Assessment to States 108,073,000.00 115,856,819.25

Trip to Cape Town 527,408.50

Trip to Cameroun 680,000.00

Ceremony & Policy Dialogue 17,384,440.00 -

SMART Survey 76,992,139.03

SMART Training 275,240.00

Workshop 2,045,600.00

Peer Review 28,345,600.00

DTA 1,254,000.00

Spot Checks 2,634,320.00

Production of Banner 150,000.00 3,286,848.00

Meetings/Steering Committee 44,580,800.00 37,957,800.00

*PMU Incentives 98,602,076.08 92,577,916.24

NHFS 54,030,025.00

Global Flagship Course, USA 14,703,015.00

Zonal Retreat 20,Q0,000.00 -

411,84Q,630.11 308,216,416.99

* PMU incentives represents 2016 Performance bonus paid to all qualified Officers ofthe Programme.

7. FEDERAL MINISTRY OF HEALTH (FMOH) 2018 2017

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N N

Procurement of Laparoscopic machine

for IRRUA 100,700,000.00 -

Procurement of Endoscopy Unit &

Dialysis machine for UBTH 100,017,596.00 -

WHT 47,875,932.00 -

VAT 7,632,853.00 -

Fast tracking Operationlization of Nat.

Health Act. 10,414,400.00

Estacode to attend 6 1st session of

The UN Commission and others 18,882,518.75

Purchase of 100 Kg Capacity

Incinerator 467,400,000.00

Const. refund - 19,540,197.50

Electricity Bill - 4,016,048.96

Fuelling of HMH vehicles - 5,079,000.00

Legal Fees - 2,000,000.00

Remodelling of Clinic-OAUTHC 40,591,474.00

Furniture 1,765,500.00

Hajji programme 4,970,000.00

Donation- FAMSA 1,000,000.00

Donation- NMSA 1,000,000.00

Cost of attending WHA Meeting 6,157,710.00 4,975,815.00

FMOH Staff Welfare 104,000,000.00 200,009,450.00

Repair of Elevator 3,006,000.00

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Contribution to WHO ($1,388,860.00) 422,838,427.00

876,375,565.00 697,497,357.21

These are the expenses incurred for the activities of the Federal Ministry of Healthduring the period under review.

8. CASH AT BANK 2018 2017

N N

BIS / CBN USD $ Account 39,174,567,258.30 106,326,388.34

CBN Program Fund Account (N) 39,789,020.35 27,282,092.30Total 39,214,356,278.65 133,608,480.64

Grants to States:

A total sum of N137,521,350.00 was transfer to states during the period under review.This being the remaining 85% granted to State as Mobilisation amount in line with thedisbursement arrangement agreed with as stated in the Programme ImplementationManual(PIM). The Total grants to States since inception of the Programme wasN16,378,399,350.00

10. NETASSET FUND

2018 2017

N N

Balance 1/1/2018 16,717,093,638.09 18,965,453,482.18

Addition during the year 55,923,086,785.00 NIL

72,640,180,423.09 18,965,453,482.18

Transfer/Adjustment NIL

Deficit for the Year (16,944,881,946.74) (2,334,978,053.57)

Exchange difference 102,542,959.75 86,618,209.48

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55,797,841,436.15 16,717,093,638.09

A difference of N39,080,747,798.06 when compared with the previous year's result.This is due to the increase the additional fund of N55,923,086,785.00 released duringthe period even though a deficit of N16,944,881,946.74 was recorded.

11. IDA FUND

$

20/02/2018 37,866,645.59

20/02/2018 65,881,847.44

21/12/2018 79,245,900.90

182,994393.93

Converted at the average rate of N 305.60/1$ N55,923,086,785.Q

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