World Bank Document - Documents &...
Transcript of World Bank Document - Documents &...
AUDITORS' REPORT ON THE FINANCIAL STATEMENTS
OF
FEDERAL URBAN JOB CREATION & FOOD SECURITYAGENCY
GRANT NUMBER IDA CREDIT NO.5112 ET AND TF-16392ET
AS AT AND FOR THE YEAR ENDED 07 JULY 2016
TAY & Co.
Chartered Certified Accountants & Authorized AuditorsAddis Ababa, Ethiopia
Tel. 251-11-442-1336 Fax 251-11-442-1338 E-mail: taycoCethionet.et
P.O.Box 1335 Addis Ababa, Ethiopia
Ethio-china Friendship Street Wongelawit Tadesse Building lt Floor
Website: www.tayauditing-.com
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
TAY & Co.kA xrtere .rtifie AccoiruntAnts 4 A- torize Au 4iters
INDEPENDENT AUDITOR'S REPORT ON THE FINANCIAL STATEMENTS OFFEDERAL URBAN JOB CREATION & FOOD SECURITY AGENCY WOMENENTREPRENEURSHIP DEVELOPMENT PROJECT GRANT NUMBER IDACREDIT NO. 5112 ET & TF- 16392 ET
Report on the financial StatementsWe have audited the accompanying financial statements of Federal Urban Job Creation & Food SecurityAgency Women Entrepreneurship Development Project Grant Number IDA Credit No.5112 ET and TF-16392 ET, which comprise the statement of financial position as at 7 July 2016, the statement of sourcesand uses of fund, and a summary of significant accounting policies and other explanatory notes for theyear then ended.
Management's Responsibility for the Financial StatementsManagement is responsible for the preparation and fair presentation of these financial statements inaccordance with Generally Accepted Accounting Principle. This responsibility includes: designing,implementing and maintaining internal control relevant to the preparation and fair presentation offinancial statements that are free from material misstatement, whether due to fraud or error; selectingand applying appropriate accounting policy; and making accounting estimates that are reasonable in thecircumstances.
Auditor's ResponsibilityOur responsibility is to express an opinion on these financial statements based on our audit. Weconducted our audit in accordance with International Standards on Auditing. Those standards requirethat we comply with ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures inthe financial statements. The procedures selected depend on the auditor's judgment, including theassessment of the risks of material misstatement of the financial statements, whether due to fraud orerror. In making those risk assessments, the auditor considers internal control relevant to the entity'spreparation and fair presentation of the financial statements in order to design audit procedures that areappropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness ofthe entity's internal control. An audit also includes evaluating the appropriaten g policiesused and the reasonableness of accounting estimates made by manageme ( el as ng theoverall presentation of the financial statements.
Opinion eIn our opinion, the financial statements present fairly, in all material respects, the-C4_ncial i n ofFederal Urban Job Creation & Food Security Agency Women Entrepre irphip Dievelo ojectGrant Number IDA Credit No.5112 ET and TF-16392 ET as at 7 July 20 nan rmanceand operating result for the year then ended in accordance with General ccountingPrinciple.
Ethio-China Friendship Street, Wengelawit Tadesse Building 1 St Floor
In addition, with respect to the statement of expenditure submitted during the year ended 7 July 2016, inour opinion.
a. The statements, together with the procedures and initial control involved in their preparation, can bereplied up on to support the relevant withdrawals,
b. Adequate supporting documentation has been maintained to support claims to IDA for
reimburs of expenditures incurred: and
C. re ligible for financing under IDA Credit No.5112 ET and TF-16392 ET
TAY Co.Carter fle cco a Addis Ababa,Authoriz December 27 , 2016
uditoc
2
FEDERAL URBAN JOB CREATION & FOOD SECURITY AGENCY
GRANT NUMBER IDA CREDIT NO.5112 ET AND TF-16392ET
NOTES TO THE ACCOUNTFOR THE YEAR ENDED 7 JULY 2016
CURRENCY: ETHIOPIAN BIRR
2016 2015
Notes
CURRENT ASSET
Receivable 5 1,988,038.70 1,018,188.15
Cash at bank 6 9,077,513.48 3,584,271.95
11,065,552.18 4,602,460.10
CURRENT LIABLITIES
Creditors and accruals 7 111,326.64 3,894,444.52
111,326.64 3,894,444.52
Net current Asset 10,954,225.54 708,015.58
REPRESENTED BY:
Fund Balance 8 10,954,225.54 708,015.58
3
udW-6s;
FEDERAL URBAN JOB CREATION & FOOD SECURITY AGENCY
GRANT NUMBER IDA CREDIT NO.5112 ET AND TF-16392ET
STATEMENT OF SOURCES AND USES OF FUNDS
FOR THE YEAR ENDED 7 July 2016
CURRENCY:ETHIOPIAN
BIRR
Notes 2016 2015
SOURCESIDA Credit
SOE procedures 9 13,283,174.04 19,874,428.93
Gain on Exchange 255,790.42 41,496.78
Trust Fund 10,419,621.14 5,896,430.89
23,958,585.60 25,812,356.60
USES
Entrepreneurial Skills, Technology and 10cluser Dveloment11,686,747.76 22,612,951.55
cluster Development
Project Management, Advocacy andoutreach, monitoring and evaluation and 11impact Evaluation 2,025,627.88 4,000,768.15
13,712,375.64 26,613,719.70
EXCES OF SOURCE OVER USES 10,246,209.96 (801,363.10)
4
FEDERAL URBAN JOB CREATION & FOOD SECURITY AGENCY
GRANT NUMBER IDA CREDIT NO.5112 ET AND TF-16392ET
NOTES TO THE ACCOUNT
FOR THE YEAR ENDED 7 July 2016
1. ESTABLISHMENT OF THIE AGENCY
The Federal Urban Job Creation and Food Securities Agency is established as the Council of Ministers Regulation 374/2016
2 OBJECTIVE OF THE AGENCY
The Agency established with the following objectivities:-
a) To improve the livelihood of citizen who are unable to work or able to work but unemployed due to different
conditions and live under poverty line; based on the principles of urban job creation and food security ,by
providing developmental safety net support to citizen sustainably and ensure their food security.
b) To support and coordinate institutions assisting the micro enterprises and small enterprises do not fall under
the manufacturing sector to make them competitive, sustainable and strong foundation industrial development.
c) To promote and develop micro enterprises and small enterprises do not fall under the manufacturing sector
engaged in urban agriculture ,construction ,trade and services sectors with a view to make these sectors
competitive ,sustainable and thereby create employment opportunities in the urban center ,improve their income
- and create fair resource distribution
d) To ensure balanced nutritional security of citizens.
3 Background of the project
Financing agreement was signed on 12 June 2012 between the Federal Democratic Republic of Ethiopia and the International
Development Association (IDA) according to which SDR 32,200,000 (Thirty-two million two hundred thousand) is available
in the form of credit to implement the activities of the Women Entrepreneurship Development project, under credit
agreement No 5122-ET.The project is implemented through Ministry of Urban Development and construction (MoUD &C)
National project management team (NPMT) is established with in the Federal Micro and Small Enterprise Development
Agency (FeMSEDA) under the MoUD &C . MoUD &C , FeMSEDA , NPMT, Development Bank of Ethiopia (DBE) and
other sub national administration selected for the execution of the project and implementing project activities. The objective
of the project is to increase the earning and employment of Micro and small enterprises (MSEs)fully or partially owned by
female entrepreneurs in the targeted cities.
4. Accounting policies
The principal accounting policies adopted by the project are set out below. These policies have been consistently applied to
all years presented, unless otherwise stated.
a. Basis of presentation
These financial statements have been prepared in accordance with cost convention
b. Currency
Transitions in foreign currency are converted to Birr at the exchange rate ruling at the date of the transaction. Cash balances
maintained in the foreign currency is converted to Birr at the exchange rate ruling at the date of the balance sheet date
c. Basis of accounting
Modified cash basis of accounting is used in the recognition of source and uses of fund.
d. Fund balance
Incorporates gain on exchange rate and net interest income before profit and tax of Development bank of Ethiopia obtained
from disbursement of loan to micro finance institution,
e. Fixed Asset chtere,Fixed Assets are treated As project Expenditure at the time of Pur s ng of Depreciation.
5o&
FEDERAL URBAN JOB CREATION & FOOD SECURITY AGENCY
GRANT NUMBER IDA CREDIT NO.5112 ET AND TF-16392ET
NOTES TO THE ACCOUNTFOR THE YEAR ENDED 7 July 2016
CURRENCY: ETHIOPIAN BIRR
5. Advance to regions2016 2015
Advance to Addis Ababa COFED - 708,854.12
Akaki College 106,467.00
Misrak college 106,467.00
Entoto College 106,467.00
Nifas-Silk lafto TVET 106,467.00
Tegbareid College 106,467.00
General Winget college 106,467.00
Advance to Mekelle COFED 102,962.30 117,908.86
Advance to Mekelle polytechnic college 159,849.00
Advance to Bahir Dar COFED 63,914.91 15,419.52
Advance to Bahir Dar Polytechnic college 159,849.00
Advance to Adarna COFED 36,208.77 100,076.99
Advance to Adama Polytechnic college 159,849.00
Advance to -lawassa COFED 168,564.16 7,243.94
Advance to Hawassa Polytechnic College 159,849.00
Advance to Dere Dawa COFED 178,341.56 68,684.72
Dire Dawa Melese Zenawi College 159,849.00 ___________
1,988,038.70 1,018,188.15
7. Cash and Bank Balance2016 2015
NBE-0100101300490 4,411,445.97
NBE-0100751040010 4,666,067.51 3,584,271.95
9,077,513.48 3,584,271.95
8. Creditors and accruals2016 2015
Withholding tax payable 10,052.39 2,53 1,528.35
VAT Payable 100,972.11 1,291,265.07
Salary income tax payable 71,651.10
Staff creditors 270.16 -
- Sundry Creditors 31.98 ___________
111,326.64 3,894,444.52
1 4 -
3620.7010,769
FEDERAL URBAN JOB CREATION & FOOD SECURITY AGENCY
GRANT NUMBER IDA CREDIT NO.5112 ET AND TF-16392ET
NOTES TO THE ACCOUNTFOR THE YEAR ENDED 7 July 2016
CURRENCY: ETHIOPIAN BIRR
9. Fund Balance2016 2015
Opening Balance 708,015.58 1,509,378.68
Add: Current year transfer 10,246,209.96 (801,363.10)10,954,225.54 708,015.58
10. SOE Procedure2016 2015
Withdrawal application 13,283,174.04 16,022,453.74
Direct payment by world bank - 3,851,975.19
13,283,174.04 19,874,428.93
11. Entrepreneurship Skills, Technology and cluster Development
2016 2015
Salaries & related benefit 2,986,117.39 830,680.00
Stationery & office supplies 2,931,212.28 1,544,982.98
Contractual professional Service 103,694.00 16,019,138.87
Training 1,560,095.73 1,815,320.80
Purchase of Equipment & furniture - 634,468.23
Fuel & lubricants 48,197.22 611,718.44
Repair and maintenance 109,574.46 347,036.30
Periderm 411,830.00 200,305.22
Telephone Expense 912,490.30 175,111.60
Rent 81,995.00 139,169.04
Publication 23,000.00 67,591.20
Transportation 73,102.00 67,341.00
Insurance 12,995.50 46,888.99
Entertainment 22,403.11 46,142.43
Service Charge 71,237.24 44,259.70
Loading & unloading 14,430.00 14,200.50
Advertising 91,801.09 8,596.25
Purchase of machinery ,jed Ceruf/.. 2,232,572.44 / 41 11,686,747.76 22,612,951.55
04 9,744637,3
411,30h0r20,35e2
FEDERAL URBAN JOB CREATION & FOOD SECURITY AGENCY
GRANT NUMBER IDA CREDIT NO.5112 ET AND TF-16392ET
NOTES TO THE ACCOUNTFOR THE YEAR ENDED 7 July 2016
12. Project Management, Advocacy and outreach, Monitoring and evaluation and impact Evaluation
CURRENCY: ETHIOPIAN BIRR
2016 2015
Salaries & related benefit - 1,276,154.30
Stationery & office supplies 34,153.04 184,161.14
Contractual professional Service - 772,728.00
Training 105,331.49 103,512.03
Fuel & lubricants 11,720.40 198,612.05
Repair and maintenance 168,687.49 188,285.40
Periderm 285,984.00 346,394.00
Telephone Expense 125,997.42 140,163.76
Rent 495,748.79 30,000.00
Publication 101,510.00 432,080.66
Medical Supplies 42,383.86 -
Transportation 76,228.50 100,347.18
Insurance - 31,762.93
Entertainment 7,731.12 9,864.51
Service Charge 1,903.00 43,663.08
Loading & unloading 8,282.78 -
Advertisement 510,228.75 88,260.48
Purchase of vehicle - 19,791.50
Purchase of machinery 49,737.24 34,028.01
Miscellaneous expense - 959.12
2,025,627.88 4,000,768.15
一:〕:〕辦
AUDITORS'REPORT ON THE DESIGNATED ACCOUNT
OF
FEDERAL URBAN JOB CREATION AND FOOD SECURITY
AGENCY
GRANT NUMBER IDA CREDIT NO.5112 ET
AS AT AND FOR THE YEAR ENDED 7 JULY 2016
TAY & Co.
Chartered Certified Accountants & Authorized AuditorsAddis Ababa, Ethiopia
Tel.251-11-442-1336 Fax 251-t 1-442-1338 E-mail: jAyc o (e- )ethionet.etP.O.Box 1335 Addis Ababa, Ethiopia
Ethio-china Friendship Street Wongelawit Tadesse Building I" FloorWebsite: www.tayaL1ditin,(z. coin
rt~r~ TAY &tCo.e,A rtae, Catife, Accu t pmt5 2j Au14tfjIrize4 ArzI ita'r5
INDEPENDENT AUDITOR'S REPORT TO THE MANAGEMENT OF FEDERAL
URBAN JOB CREATION AND FOOD SECURITY AGENCY NUMBER IDA
CREDIT NO.5112 ET
We have audited the accompanying special accounts of Federal urban job creation and food security
agency Grant Number IDA Credit No.5112 ET and for the year ended 7 July 2016.
Management's Responsibility for the Financial StatementsManagement is responsible for the preparation and fair presentation of these financial statements in
accordance with Generally Accepted Accounting Principle .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 policy; and making accounting estimates that are reasonable in the circumstances.
Auditor's ResponsibilityOur 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. Those standards require that we comply
with ethical requirements and plan and perform the audit to obtain reasonable assurance about 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 assessment, the auditors 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 the
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.
OpinionIn our opinion, th al accounts give a true and fair view of the financial position of Federal urban job
creation an o sduv ency Grant Number IDA Credit No.5112 ET as at 7 July 2016 and the
moveme f ar in accordance with Generally Accepted Accounting Principle.
.00
TAY& ct.\Chartere &''I d Ace ta Addis Ababa,
Authorize . i' O. ... December 27, 2016
Ethio-China Friendship Street, Wengelawit Tadesse Building 1st Floor
Tel. (011) 442 1336, 442 0062, (011) 470 7092, (011) 470 7094 - Mob. (093) 001 4106, (091) 151 5038/39
Fax (011) 442 1338 - e-mail: [email protected] - www.tayauditing.com - P.O. Box 1335 - Addis Ababa, Ethiopia
FEDERAL URBAN JOB CREATION AND FOOD SECURITY AGENCY
GRANT NUMBER IDA CREDIT NO.5112 ET
STATEMENT OF DESIGNATED ACCOUNT
FOR THE YEAR ENDED 7 July 2016
For the year ended 7-Jul-16
Account Number 0100751300078(0261501394100)
- Depository bank National bank of Ethiopia
Address: Addis Ababa, Ethiopia
Related Grant IDA Credit 5112-ET
Currency USD
2015
Balance as of 8 july 2015
Add:- World Bank Replenishment 625,762.07 795,177.12
Amount Transferred from World Bank during this period
Other Deposit625,762.07 795,177.12
Less:- Expenditure During the periodTransferred to birr Account 625,762.07 795,177.12
Balance as of 7 july 2016 _ _ _
2 P OB8OX1335
AUDITORS' REPORT ON THE DESIGNATED ACCOUNT
OF
FEDERAL URBAN JOB CREATION AND FOOD SECURITY
AGENCY
GRANT NUMBER IDA CREDIT TF-16392ET
AS AT AND FOR THE YEAR ENDED 7 JULY 2016
TAY & Co.
Chartered Certified Accountants & Authorized AuditorsAddis Ababa, Ethiopia
Tel. 251-11-442-1336 Fax 251-11-442-1338 E-mail: tavco )ethionet.etP.O.Box 1335 Addis Ababa, Ethiopia
Ethio-china Friendship Street Wongelawit Tadesse Building 1' FloorWebsite: www.tavauditine.com
TAY & Co.
INDEPENDENT AUDITOR'S REPORT TO THE MANAGEMENT OF
FEDERAL URBAN JOB CREATION AND FOOD SECURITY AGENCY
NUMBER TF 16392 ET
We have audited the accompanying special accounts of Federal Urban Job Creation and Food Security
Agency Grant Number TF-16392ET, for the year ended 7 July 2016.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with Generally Accepted Accounting Principle .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 policy; and making accounting estimates that are reasonable in the
circumstances.
Auditor's ResponsibilityOur 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. Those standards require that
we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance
about 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 assessment, the auditors 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 the 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.
C~artereyOpinion .In our opinio , cial acc e a true and fair view of the financial position of Federal urban
job creation odjsppyrity age c ant Number TF-16392 ET as at 7 July 2016 and the movement
for the ear cd& i4 a e.3h Generally Accepted Accounting Principle
TAY & Co.Chartered Certifie unt Addis Ababa,
Authorized Auditors December 27 , 2016
Ethio-China Friendship Street, Wengelawit Tadesse Building 1st Floor
Tel. (011) 442 1336, 442 0062, (011) 470 7092,(011) 470 7094 - Mob. (093) 001 4106, (091) 151 5038/39
Fax (011) 442 1338 - e-mail: [email protected] - www.tayauditing.com - P.O. Box 1335 - Addis Ababa, Ethiopia
FEDERAL URBAN JOB CREATION AND FOOD SECURITY AGENCY
Grant Number IDA TF NO.16392ETSTATEMENT OF DESIGNATED ACCOUNT
FOR THE YEAR ENDED 7 July 2016
For the year ended 7-Jul-16
Account Number 100101300490
Depository bank National bank of Ethiopia
Address: Addis Ababa, Ethiopia
Related Grant IDA TF NO.16392ET
Currency USD
2016
Balance as of 8 july 2015 -
Add:- World Bank Replenishment 502,078.11Amount Transferred from World Bank during periodOther Deposit
Less:- Expenditure During the period 300,000.00Transferred to birr Account
Balance as of 7 july 2016 For Trust Fund 202,078.11
2