and independent auditor's report - world...

TRUST FUND GRANT AGREEMENTFUNDED BY INTERNATIONAL DEVELOPMENT ASSOCIATION - IDA

MANAGED BY NGO DEVELOPMENT CENTER - NDC

Project title: GAZA EMERGENCY CASH FOR WORK AND SELF-EMPLOYMENT SUPPORT

STATEMENT OF PROJECT ACTIVITIES AND SCHEDULE OF THE MOVEMENTS OF THE PROJECT SPECIALBANK ACCOUNT

FOR THE PERIOD FROM August 14, 2018 TO DECEMBER 31, 2019

AND INDEPENDENT AUDITOR'S REPORT

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NGO Development Center (NDC)Gaza Emergency Cash for Work and Self-Employment SupportFor the Period from August 14, 2018 to December 31, 2019

TABLE OF CONTENTS

Page

Independent auditor's report 2

Statement of Project Activities 4

Schedule of the Movements of the Project Special Bank Account 5

Notes to the financial information of the project special bank account 6

Appendices 9

pwc

Independent Auditor's Report to the Management of NGO Development Center(NDC)Jerusalem - Palestine

Our opinion

In our opinion, the financial information of the Project titled "Gaza Emergency Cash for Workand Self-Employment Support" (hereinafter "the Project"), funded by the InternationalDevelopment Association (hereinafter "IDA" or "the Bank"), and managed by NGO DevelopmentCenter (hereinafter "NDC"), for the period from August 14, 2018 to December 31, 2019, isprepared, in all material respects, in accordance with the basis of accounting described in Note(2).

What we have audited

The Project's financial information comprises of:* The statement of project activities during the year ended December 31, 2019;

* The schedule of movement of the Project special bank account; and* The notes to the financial information, which include a summary of significant

accounting policies.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (ISAs). Ourresponsibilities under those standards are further described in the Auditor's responsibilities forthe audit of the financial information section of our report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide abasis for our opinion.

Independence

We are independent of NDC in accordance with the International Ethics Standards Board forAccountants' Code of Ethics for Professional Accountants (IESBA Code). We have fulfilled ourother ethical responsibilities in accordance with the IESBA Code.

Emphasis of Matter - Basis of Accounting and Restriction on Distribution and useWe draw attention to Note (2) to the financial information, which describes the basis ofaccounting. The financial information is prepared to provide information to NDC and IDA. As aresult, the financial information may not be suitable for another purpose.

Our report is intended solely for IDA and NDC and should not be distributed to or used byparties other than IDA and NDC.

The financial statement does not comprise a full set of financial statements prepared inaccordance with the basis of accounting described in Note (2) to the financial statement. Ouropinion is not modified in respect of this matter.

PricewaterhouseCoopers, Amaar Tower, Level 7, Al-Irsal, Al-Bireh, PalestineT: (972)2 242 023o, F: (972) 2 242 0231, www.pwc.com/middle-eastNote: From Arab Countries Please dial 97o instead of 972

2

pwcIndependent Auditor's Report to the Management of NGO Development Center(NDC) (continued)

Responsibilities of management and those charged with governance for thefinancial information

Management is responsible for the preparation of the financial information in accordance withthe basis of accounting described in Note (2), and for such internal control as managementdetermines is necessary to enable the preparation of financial information that is free frommaterial misstatement, whether due to fraud or error.

Those charged with governance are responsible for overseeing the entity's financial reportingprocess.

Auditor's responsibilities for the audit of the financial information

Our objectives are to obtain reasonable assurance about whether the financial information as awhole is free from material misstatement, whether due to fraud or error, and to issue anauditor's report that includes our opinion. Reasonable assurance is a high level of assurance butis not a guarantee that an audit conducted in accordance with ISAs will always detect a materialmisstatement when it exists. Misstatements can arise from fraud or error and are consideredmaterial if, individually or in the aggregate, they could reasonably be expected to influence theeconomic decisions of users taken on the basis of this financial information.

As part of an audit in accordance with ISAs, we exercise professional judgment and maintainprofessional skepticism throughout the audit. We also:

* Identify and assess the risks of material misstatement of the financial information,whether due to fraud or error, design and perform audit procedures responsive to thoserisks, and obtain audit evidence that is sufficient and appropriate to provide a basis forour opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error, as fraud may involve collusion, forgery,intentional omissions, misrepresentations, or the override of internal control.

* Obtain an understanding of internal control relevant to the audit in order to design auditprocedures that are appropriate in the circumstances, but not for the purpose ofexpressing an opinion on the effectiveness of Entity's internal control.

* Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.

We communicate with those charged with governance regarding, among other matters, theplanned scope and timing of the audit and significant audit findings, including any significantdeficiencies in internal control that we identify during our audit.

PricewaterhouseCoopers Palestine Limited

Ramallah, PalestineMay 17, 2020

3


STATEMENT OF PROJECT ACTIVITIES(All amounts in USD)

Project ActualFor the Period fromAugust 14, 2018 to

Notes December 31, 2019RevenuesIDA replenishments (3) 7,779,317Total Revenues 7,779,317

Expenses

Cl: Component I - Cash for Work (C4W) (4) 4,238,080C2: Component II - Internet-enabled self-employment (e-work) (5) 900,000C3: Component Ill - Project Management,Monitoring and Evaluation (6) 503,445Total Expenses 5,641,525Excess fund (7) 2,137,792

- The notes on pages 6 to 8 are an integral part of the financial information.- The financial statement and accompanying notes on pages (4 to 8) was authorized for issue by the

NGO Development Center (NDC) management on May 8, 2020 and were signed on their behalf.

Mr. Ghassan Kasabreh Mr. Hazem QuneibiDirector Finance Manager

4


SCHEDULE OF THE MOVEMENT OF THE PROJECT SPECIAL BANK ACCOUNT(All amounts in USD)

For the Period fromAugust 14, 2018 to

Notes December 31, 2019Beginning cash balanceCash receipts 7,779,229Project disbursements 5,596,038Excess of cash receipts over cash disbursement (8) 2,183,191

- The notes on pages 6 to 8 are an integral part of the financial information.

5


NOTES TO THE FINANCIAL INFORMATION OF THE PROJECT SPECIAL BANK ACCOUNT (Allamounts in USD)

NOTE (1) GENERALNGO Development Center (NDC) was registered with the Ministry of Interior on March 4, 2006 underregistration no. (QR 286-B) as a Palestinian Non-governmental Organization (NGO). NDC started itsnormal activities on July 1, 2006.

NDC is working hand-in-hand with the Palestinian NGOs and the community developmentorganizations to enhance their service delivery and build more capable and representative Palestiniancivil society. NDC programs and grants empower Palestinians by providing NGOs the skills, tools andfunds they require to address social needs and promote self-reliance in adversity. The organizationadvocates greater NGO transparency and accountability through the adoption of professional financialand management practices and promotes sector-wide coordination and sharing of best practiceexperiences.

On August 14, 2018 NDC entered into a financing agreement "Trust Fund Grant Agreement" withInternational Development Association (IDA or the Bank) concerning the project titled "GazaEmergency Cash for Work and Self-Employment Support" (the Project). Under this agreement; the IDAagreed to grant NDC an amount of USD 17,000,000 to implement the Project over the period of threeyears; from August 14, 2018 to October 31, 2021.

The objective of the Project is to provide Target Youth in Gaza with short term employmentopportunities and increased access to internet-enabled self-employment opportunities.

The Project consists of the following parts:

Part 1: Cash for Work (C4W)Provision of Cash for Work Sub-grants to Selected NGOs to implement Cash for Work Sub-projectsemploying Target Youth.Part 2: Internet-enabled self-employment (e-work)Provision of E-Work Sub-grants to Selected Service Providers to provide e-work support (skills trainingand on-the-job support) to Target Youth.Part 3: Proiect Management, Monitoring and EvaluationStrengthening the NDC's capacity for Project management, monitoring and evaluation throughfinancing of office equipment, consultants' services, including audit, Training and IncrementalOperating Costs.

NOTE (2) SIGNIFICANT ACCOUNTING POLICIES

a) Basis of accountingThe Statement of the Project Activities and the Schedule of the Movement of the Project Special BankAccount were prepared under the modified cash basis of accounting. Under this basis, revenues arerecognized when received and expenses are recognized when disbursed, modified for year endaccruals and prepayments.

b) Special Bank AccountAs required under the signed agreement with IDA, NDC opened a special bank account for the Projectas to make all withdrawals from this account which shall be solely used for the purpose of the Project.

c) Foreign currencyNDC maintains its books of accounts in USD which is the functional currency of NDC. Transactionsdenominated in other currencies were translated to USD using the exchange rate prevailing at the dateof each transaction.

6


NOTES TO THE FINANCIAL INFORMATION OF THE PROJECT SPECIAL BANK ACCOUNT(All amounts in USD)

NOTE (3) IDA REPLENISHMENTSThis amount represents the installments received from IDA:


Date December 31, 2019December 6, 2018 4,000,000September 1, 2019 3,779,317

7,779,317**This amount represents the actual amount transferred from the IDA before deducting the bankcharges by Bank of Palestine.

NOTE (4) Cl: COMPONENT I - CASH FOR WORK (C4W)

For the Periodfrom August 14,

2018 to DecemberSub-grantee Name 31, 2019Beit Lahia Development Association 297,570

Bayader for Environment and Development Association 587,110Palestine Save the Children foundation 261,325Atfaluna Society for Deaf Children 251,875

Union Of Health Work Committees, Gaza 251,810Democracy & Workers's rights Center 220,480

MA'AN Development Center 212,030Al-azhar University Gaza 211,325The Society of women Graduates in Gaza 389,050

Gaza Culture Development Group 162,215

Right to Live Society 154,050

Injaz Palestine 150,320

Palestinian Medical Relief Society 124,635

General Union of Cultural Centers (GUCC) 120,755Al Tawasol Forum Society 117,530

Fares Al Arab for development & Charity Works 106,890

Save youth Future Society 104,495

Palestinian Organization for Development 88,710

Women's Affairs Technical Committee 87,495

Wefaq Society for women & Child Care 85,930

Red Crescent Society for Gaza Strip 85,510

Teacher Creativity Center 83,900Palestine Avenir For Childhood Foundation 83,070

4,238,080

7


NOTES TO THE FINANCIAL INFORMATION OF THE PROJECT SPECIAL BANK ACCOUNT(All amounts in USD)

NOTE (5) C2: COMPONENT II - INTERNET-ENABLED SELF-EMPLOYMENT (E-WORK)


Date December 31, 2019Gateway for outsourcing Information Technology 327,360The Islamic University Gaza - Projects 303,540University College of Applied Sciences 269,100

900,000

NOTE (6) C3: COMPONENT III - PROJECT MANAGEMENT, MONITORING AND EVALUATION

From inspection toDate December 31, 2019Personnel 338,251Operating Costs 165,194

503,445

NOTE (7) EXCESS FUND

This amount represents a fund surplus for the period, which will be carried forward to the nextreporting period of project activity.

NOTE (8) PROJECT SPECIAL BANK ACCOUNT BALANCE

This represents the balance of USD 2,183,191 outstanding in the Project special bank accountas of December 31, 2019.This bank account details are as follows:

DetailsBank Bank of PalestineBranch Ramallah- Al MasyounAccount number- IBAN # PS95 PALS 04710600 0400 0130 0000 3

To reconcile the project special bank account with the report of project activities:

AmountProject special bank account balance 2,183,191Project expenses over revenues 2,137,792Balance* 45,399

*This represents management fees incurred but still not withdrawn from the special banksaccount

8

APPENDICES

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