audit of financial statements for the sierra project

Sierra Leone Wetlands Conservation ProjectFinancial Statements for the year ended 31, December 2016

AUDIT OF FINANCIAL STATEMENTS FOR THE

SIERRA LEONE WETLANDS CONSERVATIONPROJECT FOR THE YEAR

ENDED 31" DECEMBER 2016

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Contents Page

General Information 1

Management's Responsibility Statement 2

Independent Auditor's report 3-4

Statement of Resources and Expenditures 5

Statement of Resources and Expenditures - IDA Funding 6

Statement of Resources and Expenditures - GoSL Funding 7

Statement of Comprehensive Income 8

Statement of Financial Position 9

Statement of Cash Flow 10

Notes to the Financial Statements 11 - 14

Report of the Auditors on the Special Account Statement 15

Special Account Statement 16

C a Sierra Leone Wetlands Conservation ProjectFinancial Statements for the year ended 31, December 2016

GENERAL INFORMATION

Head Office C/o National Protected Authority andConservation Trust FundMinistry of Agriculture, Forestry and FoodSecurity6 Jenjen Drive

Opposite Regimanuel GreyGoderichFreetown

Project Co-ordinator Kate M.B. Garnett (Mrs)

Bankers First International Bank (SL) LimitedCharlotte StreetFreetown

Auditors Audit Service Sierra Leone2 nd Floor .Lotto BuildingTower HillFreetownSierra Leone

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Sierra Leone Wetlands Conservation ProjectFinancial Statements for the year ended 31' December 2016

STATEMENT OF MANAGEMENT'S RESPONSIBILITIES

- The Constitution of Sierra Leone Act No. 6 of 1991 and the Government Budgeting andAccountability Act of 2005 require management to prepare Financial Statements for eachfinancial year which should show a true and fair view of the state of affairs of the Project andof its surplus or deficit for that year. In preparing these Financial Statements the Managementis required to:

- * select suitable accounting policies and apply them consistently;

* make judgements and estimates that are reasonable and prudent;

* state whether applicable accounting policies have been followed, subject to any materialdepartures disclosed and explained in the Financial Statement;

* prepare the Financial Statements on a going concern basis unless it is inappropriate topresume that the Project will continue its activities

Management is responsible for keeping proper accounting records which disclose withreasonable accuracy at any time the financial position of the Project. They have a generalresponsibility for such steps as are reasonably available to them to safeguard the assets of theProject and to prevent and detect fraud and other irregularities.

On behalf of Management

Permanent Secretary-MAFFS Project Co-ordinator

\~~~ .7 .......*.....Signature and Date Signature and Date

Chairman National Steering Committee - SLWCP

Signature and Date

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Sieal a Leone Wetlands Conservation ProjectFinancial Statements for the year ended 3111 December 2016

REPORT OF THE AUDITORS - AUDIT SERVICE SIERRA LEONE TO THEGOVERNMNEMT OF SIERRA LEONE

Introduction

I have audited the accompanying Financial Statements of the Wetland Conservation Project

which comprise a a separate consolidated statement of resources for the year ended 3 1st

December 2016, a separate statement of resources(IDA funds), a separate statement of

resources (GoSL funds), statement of the financial position for the year ended 3 1St December

2016, a separate statement of comprehensive income for the year to 31t December 2016, a

statement of cash flow for the year to 31st December 2016 and a summary of significant

accounting policies and other explanatory notes as set out on pages 11 to 15.

Responsibility of Management

The responsibility for the prevention of fraud and error and other irregularities rests with the

management of the Project.

Other responsibilities include:

* designing, implementing and maintaining internal controls 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

a* making accounting estimates that are reasonable in the circumstances.

Responsibility of the Auditor General

The Financial Statements of the Project is subject to audit by the Auditor General in

accordance with section 119(2) of the Constitution of the Republic of Sierra Leone, 1991. My

responsibility is to express an opinion on this Financial Statements based on my audit.

The audit was conducted in accordance with International Standards of Supreme Audit

Institutions. Those standards require that I comply with ethical requirements and plan and

perform the audit to obtain reasonable assurance whether the financial statements are free

from material misstatement.

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Sierra Leone Wetlands Conservation ProjectFinancial Statements for the year ended 31 December 2016

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

judgement, 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 controls relevant to the Project's preparation and fair presentation of the

financial statements in order to design audit procedures that are appropriate in the

circumstances, but not for the purpose of expressing an opinion on the effectiveness of the

Project's internal controls.

An audit also includes evaluating the:

0 appropriateness of accounting policies used;

* reasonableness of accounting estimates made by management;

* overall presentation of the financial statements; and

* adequacy of design and the effective implementation of internal controls.

I believe that the audit evidence I have obtained is sufficient and appropriate to provide a

basis for my audit opinion.

Unqualified Opinion

In my opinion, the Financial Statements of the Wetland Conservation Project give a true and

fair view, in all material respects, of the financial position as at 3 1st December 2016 and its

financial performance for the year then ended.

t AUDITOR GENERAL

DATE 2-t '

4


Consolidated Statement of Resources and Expenditure for the year ended 31st December 2016(IDA & GoSL Counterpart Funding)

q As at 31 As at 31 As at 31 As at 31December December December December

Note 2016 2016 2015 2015Leones USD Leones USD

Resources:a Opening Balances:

IDA Designated Account 27,933,014 38,469 699,476,203 170,300BCP Makeni Imprest Account 37,183,417 7,588 6,059,905 1,347GOSL Counterpart 3,777,310 772 34,144,060 8,062Disbursements:IDA Disbursements 3 893,291,750 164,205 1,579,930,012 328,836

962,185,491 211,034 2,319,610,180 508,545

Expenditure:Civil Works (382,507,396) (67,792) (42,182,000) (9,112)Goods 4 (48,000,000) (7,619) (655,587,400) (139,821)Consultancy Services (376,452,482) (68,942) (1,134,427,868) (238,592)Training and WorkshopOperating Costs 5 (352,797,055) (64,523) (338,236,506) (71,919)Exchange Adjustments 203,831,874 (1,111) (80,282,665) (2,272)

(955,925,060) (209,988) (2,250,716,439) (461,716)

Result for the period 6,260,431 1,045 68,893,741 46,829

Represented By:IDA Designated Account 309,951 49 27,933,014 38,469BCP Makeni Imprest Account 2,595,670 464 37,183,417 7,588GOSL Counterpart 3,354,810 532 3,777,310 772

6,260,431 1,045 68,893,741 46,829

These Fi I approved on........................................................2017

.......... .. . ....... ............ Chairman National Steering Committee SLWCP

.............. ........... Permanent Secretary-MAFFS

....... ... .. ........................... Project Coordinator-SLW CP

5


Statement of Resources and Expenditure for the year ended 31st December 2016(IDA Funding)

As at 31 As at 31 As at 31 As at 31December December December December

Note 2016 2016 2015 2015Leones USD Leones USD

Resources:Opening Balances:IDA Designated Account 27,933,014 38,469 699,476,203 170,300BCP Makeni Imprest Account 37,183,417 7,588 6,059,905 1,347Disbursements:IDA Disbursements 3 893,291,750 164,205 1,579,930,011 328,835

958,408,181 210,262 2,285,466,119 500,482

Expenditure:Civil Works (382,507,396) (67,792) (12,182,000)) (2,590)Goods 4 (48,000,000) (7,619) (655,587,400) (139,821)Consultancy Services (376,452,482) (68,942) (1,134,427,868) (238,592)Training and WorkshopOperating Costs 5 (352,374,055) (64,454) (337,869,756) (71,841)Exchange Adjustments (203,831,374) (942) (80,282,665) (1,582)

(955,502,560) (209,749) (2,220,349,688) (454,425)

Result for the period 2,905,621 513 65,116,431 46,057

Represented By:IDA Designated Account 309,951 49 27,933,014 38,469BCP Makeni Imprest Account 2,595,670 464 37,183,417 7,588

2,905,621 513 65,116,431 46,057

These Fi a ie approved on........................................................2017

......... ....... ............................ Chairman National Steering Committee SLWCP

............... ................... Permanent Secretary-MAFFS

.................... . . ........................ Project Coordinator-SLW CP

6


Statement of Resources and Expenditure for the year ended 31st December 2016(GoSL Funding)

As at 31 As at 31 As at 31 As at 31December Decemb December December

er2016 2016 2015 2015

Leones USD Leones USDResources:Opening Balances:GoSL Counterpart Account 3,770,310 772 34,144,060 8,062

Disbursements:GOSL Counterpart Contributions - - - -

3,770,310 772 34,144,060 8,062

a- Expenditure:Civil Works - - (30,000,000) (6,522)Goods - -Operating Costs (423,000) (69) (366,750) (78)Exchange Adjustments - (170) - (691)

(423,000) (239) (30,366,750) (7,291)

Result for the period 3,354,310 533 3,777,310 771

Represented By:GoSL Counterpart Account 3,354,310 533 3,777,310 771

3,354,310 533 3,777,310 771

These Finnc ments wer pproved on........................................................2017

... ............... ........................ Chairman National Steering Committee SLWCP

. . .. .......... ............. .............. Permanent Secretary-MAFFS

.. ............ .. ......................... Project Coordinator-SLWCP

7

Sierra Leone Wetlands Conservation ProjectFinancial Statements for the year ended 31" December 2016

Statement of comprehensive income for the year ended 31st December 2016(IDA & GoSL Counterpart Funding)


2016 2016 2015 2015Leones USD Leones USD

IncomeInternational Development 893,291,750 164,205 1,579,930,012 328,836AssociationGovernment of Sierra Leone - - -

893,291,750 164,205 1,579,930,012 328,836

Expenditure:

Civil Works (382,507,396) (67,792) (42,182,000) (9,112)Goods (48,000,000) (7,619) (655,587,400) (139,821)Consultancy Services (376,452,482) (68,942) (1,134,427,868) (238,592)Training and Workshop - -

Operating Costs (352,797,055) (64,523) (338,236,506) (71,919)Exchange Adjustments 203,831,874 (1,111) (80,282,666) (2,272)Total Expenditure (955,925,059) (209,988) (3,250,716,439) (461,716)

Accumulated Fund (62,633,309) (45,782) (670,786,428) (132,880)

These Finane, S s we approved on........................................................ 2017

..................... ......................... Chairman National Steering Committee SLWCP

..................... ......... .......................... Permanent Secretary-IAFFS

.................. . ...................... Project Coordinator-SLW CP

8

M


Statement of Financial Position for the year ended 31 December 2016

As at 31 As at 31 As at 31 As at 31Notes December December December December


Assets:Cash and Cash Equivalent 6 6,260,431 1,045 68,893,741 46,829

6,260,431 1,045 68,893,741 46,829

Represented by:

Funding and Liabilities:

Accumulated Fund 9 6,260,431 1,045 68,893,741 46,8296,260,431 1,045 68,893,741 46,829

These Fina i ents approved on........................................................2017

................ . ........ .......... Chairman National Steering Committee SLWCP

. . ...... Permanent Secretary-MAFFS

...................... . ................ Project Coordinator-SLW CP

9


Statement of Cash Flow(IDA and GoSL Funding)

NotesAs at 31 As at 31 As at 31

December December December2016 2016 2015

Leones USD USD- Operating Activities:

Cash paid to suppliers and employees 7 907,925,060 202,369 321,895Cash flow from operating activities 907,925,060 202,369 321,895

Investing Activities:Acquisition of property, plant and equipment 4 48,000,000 7,619 139,821

a Cash flow from Investing activities 48,000,000 7,619 139,821

Financing ActivitiesFunding Received 893,291,750 164,205 328,836Cash flow from Financing activities 893,291,750 164,205 328,836

Net decrease in cash and cash equivalents (62,633,310) (45,783) (132,880)Cash and Cash equivalents as at 1st January 68,893,741 46,829 179,709Cash and Cash equivalents as at 31st December 6 6,260,431 1,045 46,829

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NOTES TO THE FINANCIAL STATEMENTS

to 1. BACKGROUND TO THE PROJECT

Sierra Leone Wetlands Conservation project (SLWCP) aims to contribute to enhancing theintegrity and health of a selected network of ecosystems in Sierra Leone and increasemanagement effectiveness of these of these Protected Areas. The SLWCP will pilot theconservation planning and management of the Sierra Leone River Estuary (Coastal Wetland)and the Mamunta Mayosso (Inland, Wetland). An amount of US$1.8 million GEF grantfunds will finance activities in the above-mentioned protected areas.The project aims to effectively manage selected critical ecological areas, protect wildlife andconserve biodiversity for short and long-term benefits of rural communities surrounding thesesites.The Projects Development objective of SLWCP is to improve strategic and operationalconservation management of wetland area in Sierra Leone. The project has three componentsand will pilot activities in two wetland areas, the Sierra Leone River Estuary (Costal Wetland)and the Mamunta Mayosso Complex (Inland, Wetland).

Component 1 - will provide technical assistance to support: (i) reviewing and updating asappropriate of the existing policy and strategy for wetland conservation in Sierra Leone; (ii)updating the inventory and prioritizing conservation needs of key wetland ecosystemsthroughout Sierra Leone; and (iii) preparing a prioritized and phased strategic plan forwetland conservation nationwide.

Component 2 - will provide services to support: Wetland Conservation Site, CommunityMobilisation, Outreach and Conservation Lined Development planning and management;goods (e.g. motorbikes, small boats, global positioning systems (GPS), Radios, laptops, etc);minor infrastructure improvements; training, including workshops and study tours, and someoperational costs in order to develop and implement effective conservation management at theselected priority wetland conservation sites. Best practice will be shared with managers andstakeholders at other wetland sites around the country in the context of implementing anational strategic plan for wetland conservation. This component will also provide funds fortraining to conservation staff and local officials to support the decentralised conservationmanagement process.

Under Component 3 - the project will primarily finance services and some goods to supportthe existing SLWCP Project Management Team (PMT) within the Forestry Division ofMAFFS, to ensure that the team has the necessary resources to effectively expand the scopeof work to include the wetland sites and wetland conservation strategy development.Activities will include: ( i) ongoing operation of the National Steering Committee (NSC) andproject Management Team, (ii) developing and supervising annual and quarterly work plansand budgets, (iii) overseeing procurement and financial management and conducting annualaudits, and (iv) establishing baselines, and developing planning monitoring and evaluationsystems for wetlands in the context of national conservation program.

Sierra Leone Wetlands Conservation ProjectFinancial Statements for the year ended 3 1 December 2016

NOTES TO THE FINANCIAL STATEMENTS (Continued)

2. PRINCIPAL ACCOUNTING POLICIES

The following accounting policies have been applied consistently in dealing withitems which are considered material in relation to the Project's financial statement.

a. Basis of accountingStatement of resources and expenditure are prepared on the basis of cashaccounting whereby income is recognised on the receipt of cash and cashequivalents is recognised on the disbursement of cash and cash equivalent

b. Foreign currency transaction

Functional and presentation currencyThe functional currency is the local currency in Sierra Leone which is the Leone.The Project has however adopted the United States Dollars (US$) as itspresentation currency as most of it transactions are dominated in SU Dollars.Transactions in all other currencies are therefore considered foreign currencytransactions.

Transactions and balancesForeign currency transactions are translated into functional currency using theexchange rates prevailing on the dates of the transactions. Foreign exchange gainsand losses resulting from the settlement of such transactions denominated inforeign currencies are recognised in the Project statement of comprehensiveincome.

c. Non-current assets

Plant and equipment are expensed on acquisition by the Co-ordinating Unit. Thefinancial statements therefore have no non-current assets shown.

d. Income

Funding from the World Bank is held in a deferred income account when receivedand only recognised in the Project's statement of Comprehensive Income whenutilised.

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NOTES TO THE FINANCIAL STATEMENTS (Continued)

3. IDA Disbursements in 2016 As at 31 As at 31 As at 31 As at 31December December December December


Rec from World Bank SLWCP/08 583,318,227 125,445Rec from World Bank SLWCP/9A 486,723,909 99,331Rec from World Bank SLWCP/9 62,103,924 12,676Rec from World Bank SLWCP/10 447,783,952 91,384Rec from World Bank SLWCP/1 1 531,109,710 98,354Rec from World Bank SLWCP/12 362,182,040 65,851

164,205 328,836893,291,750 1,579,930,012

4. GOODS

Equipment, Field Tools (48,000,000) (7,619) (655,587,400) (139,821)Accessories,Motor Vehicles and Motor Bikes - - - -

(48,000,000) (7,619) (655,587,400) (139,821)

5. OPERATING COSTStationery, Utilities, Bank (352,797,055) 64,523 (336,236,506) (71,919)Charges, Salaries

(352,797,055) 64,523 (336,236,506) (71,919)

6. Cash and Cash EquivalentsIDA Designated Account 309,951 49 27,933,014 38,469WCP Makeni Imprest Account 2,595,670 464 37,183,417 7,588GOSL Counterpart 3,354,810 532 3,777,310 772

6,260,431 1,045 68,893,741 46,829

7. Cash paid on operating activitiesCivil Works (382,507,396) (67,792) (42,182,000) (9,112)Consultancy Services (376,452,482) (68,943) (1,134,427,868) (238,592)Operating Costs (352,797,055) (64,523) (338,236,506) (71,919)Exchange Adjustments 203,831,874 (1,111) (80,282,666) (2,272)

(907,925,060) (202,369) (1,595,129,040) (321,895)

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Sierra Leone Wetlands Conservation ProjectFinancial Statements for the year ended 31' December 2016

NOTES TO THE FINANCIAL STATEMENTS


2016 2016 2015 2015-a Leones USD Leones USD

8. Cash received from funding agenciesAmount received from IDA 893,291,750 164,205 1,579,930,012 328,836GoSL Counterpart Contribution -_- - -

893,291,750 164,205 1,579,930,012 328,836

9. ACCUMULATED FUNDBalance as at 1 January 68,893,741 46,829 739,680,168 179,709Excess of income over expenditure (62,633,310) (45,784) (670,786,429) (132,880)

6,260,431 1,045 68,893,741 46,829

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Sierra Leone Wetlands Conservation ProjectFinancial Statements for the year ended 31o December 2016

REPORT OF THE AUDITORS ON THE SPECIAL ACCOUNT STATEMENT, USDOLLLAR ACCOUNT NUMBER 00-112-069724-01

I have audited the accompanying Special Account numbered 00-112-069724-01 with the FirstInternational Bank (SL) Ltd established under the provision of the World Bank Programmefor the year ended 3 1st December 2016 as set out on pages 16.

I conducted my audit in accordance with the International Standards of Supreme AuditInstitutions and International Federation of Accountants (IFAC). Those Standards require thatI plan and perform the audit to obtain reasonable assurance that the Special Accountstatements are free of material misstatement.

The accompanying Special Account Statement was prepared on the basis of cash depositedand withdrawals for the purpose of complying with the project agreement.

I believe that the audit evidence I have obtained is sufficient and appropriate to provide abasis for my opinion.

Opinion

In my opinion the receipts are properly accounted for and the withdrawals were made for thepurpose of the project in accordance with the Loan/Grant agreement and IDA disbursementprocedures. The accompanying special account statement give a true and fair view of theending balance for the year ended 3 1 st December 2016.

In accordance with the provisions of the terms of reference of the audit, I confirm as follows:

* Withdrawals from the Special Account during the period under review were made foreligible expenditure.

* The Special Account of the project has been maintained in accordance with theprovisions of the financing agreement.

140 AUDITOR GENERAL

Date 7-11

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SPECIAL ACCOUNT STATEMENT

IDA Funding

Account No: 00-112-069724-01

Depository Bank First International Bank (SL) Limited

Address Charlotte Street, Freetown,

Sierra Leone

Related Grant Agreement IDA/GEF Grant TF 096537

Currency United States Dollars

As at 31 As at 31December December

2016 2015USD USD

Resources:Opening Balances:Balance brought forward 1 January 38,469 170,300

IDA Funding 164,205 328,836

a Exchange adjustment - -202,674 499,136

Deduct amount withdrawn (202,625) (460,4667)Balance carried forward 31 December 49 38,469

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audit of financial statements for the sierra project

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