auditor's report on the financial statements of the
TRANSCRIPT
AUDITOR'S REPORT
ON THEFINANCIAL STATEMENTS OF THE
LIBERIA ROAD ASSET MANAGEMENT PROJECTIMPLEMENTED BY
MINISTRY OF PUBLIC WORKSFOR THE YEAR ENDED JUNE 30,2017
MGI-MONBO & COMPANY, CERTIFIED PUBLIC ACCOUNTANTS
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AUDITORS' REPORT ON THE LIBERIA ROAD ASSET MANAGEMENT PROJECT(LIBRAMP) FOR THE YEAR ENDED JUNE 30, 2017
Contents
Project Management Team 3
Report of the Auditors on the Financial Statements 4-5
Balance Sheet 6
Fund Receipts & Disbursements Statement 7
Cash-flow Statement 8
Notes to the Financial Statements 9-10
SOEs & Designated Account Reconciliation Statement 11
Report of the Independent Auditors on Designated AccountStatement 12-13
Report of the Independent Auditors on Statement of Expenditure 14-15
Schedule of Expenditure Component 16
Management Letter 17
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AUDITORS' REPORT ON THE LIBERIA ROAD ASSET MANAGEMENT PROJECT(LIBRAMP) FOR THE YEAR ENDED JUNE 30, 2017
PROIECT MANAGEMENT
IMPLEMENTATION UNIT: MINISTRY OF PUBLIC WORKSLIBRAM PROJECT
FINANCIAL MANAGEMENT: MINISTRY OF FINANCE & DEVELOPMENT PLANNINGPROJECT FINANCIAL MANAGEMENT UNIT
PROJECT OFFICIALS:
LIBRAM Liberia Project,1. Emmanuel K. Baker- Program Manager2. V. Larry Reeves-Procurement Specialist
Project Financial Management Unit, Ministry of Finance & Development Planning
1. Dr. Christopher Sokpor, Unit Manager2. Dr. Hussein Salia, Senior Project Accountant3. Mr. Subozu Kollie, Senior Internal Auditor
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AUDITORS
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MGI MONBO & COMPANYCertified Public Accountants2nd Floor King's BuildingCorner Broad & Gurley StreetsMonrovia, Liberia
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*,. MGI MONBO & COMPANYCERTIFIED PUBLIC ACCOUNTANTS
Member Firm of MIDSNELL GROUP INTERNATIONALMr. Emmanuel K. BakerProgram ManagerLIBRAM ProjectMinistry of Public WorksMonrovia, Liberia
Dear Sir:AUDITORS' REPORT
We have audited the accompanying balance sheet of the Liberia Road Asset Management Project(LIBRAMP) under the International Development Association Credit and the related statements offund receipts and disbursements, cash flows for the period than ended June 30,2017 and a summaryof significant accounting policies and explanatory notes on pages 9-10.
Management!s ResponsibilityThese financial statements preparation and fair presentation in accordance with International PublicSector Accounting Standards (IPSAS), adopted by the Government of Liberia and with relevantprovisions of the Project Grant Agreement is the responsibility of the management of the ProjectImplementation Unit of the Ministry of Public Works and the Project Financial Management Unit ofthe Ministry of Finance & Development Planning. These responsibilities include; designing,implementing and maintaining internal controls relevant to the preparation and fair presentation offinancial statements that are free from material misstatements, whether due to fraud or error;selecting and applying appropriate accounting policies; and making estimates that are reasonable inthe circumstances.
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 promulgated by theInternational Federation of Accountants and International Organization of Supreme Audit Institution(INTOSA). These Standards require that we comply with ethical requirements and plan and performthe audit to obtain reasonable assurance whether the project financial statements are free of materialmisstatement
An audit involves performing procedures to obtain audit evidence about the amounts and disclosuresin the project financial statements. The procedures selected depend on the auditor's judgement,including the assessment of the risks of material misstatement of the project financial statement,whether due to fraud or error. In making those risk assessments, the auditor considers internalcontrol relevant to the entity's preparation and fair presentation of the project financial statementsin order to design audit procedures that are appropriate in the circumstances, but not for the purposeof expressing an opinion on the effectiveness of the entity's internal control. An audit also includeevaluating the'appropriateness of accounting policies used and the reasonableness of accountingestimates made by management as well as evaluating the overall presentation of the project financialstatements.
King's Building 2nd Floor P. 0. Box 3196 Cell: +231-6512549Broad & Gurley Streets Monrovia, Liberia E-mail: [email protected], Liberia
AUDITORS' REPORT ON THE LIBERIA ROAD ASSET MANAGEMENT PROJECT(LIBRAMP) FOR THE YEAR ENDED JUNE 30, 2017
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basisfor our audit opinion.
Auditor's OpinionIn our opinion, proper books of accounts have been maintained and the financial statements referredto in the first paragraph above present fairly in all material respects, the financial position of theLiberia Road Asset Management Project dLIBRAMP) as of June 30, 2017, the Receipts andDisbursements and cash flows for the period ended are in conformity with the Cash BasisInternational Public Sector Accounting Standard (IPSAS) promulgated by the InternationalFederation of Accountants (IFAC), adopted by the Government of Liberia and IDA guidelinesstipulated in the agreement for thepr
MONBO 8COMPANY
MGI-MONBO & COMPANY 'CERTIFIED PUBLIC ACCOUNTANTS
October 30, 2017
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AUDITORS' REPORT ON THE LIBERIA ROAD ASSET MANAGEMENT PROJECT(LIBRAMP) FOR THE YEAR ENDED JUNE 30, 2017
LIBERIA ROAD ASSET MANAGEMENT PROJECT(LIBRAM)BALANCESHEET
AS AT JUNE 30,2017
JUL. 2016-JUN. JUL. 2015-JUN.NOTES 2017 2016CURRENT ASSETS US$ US$
BANK& CASH BALANCE 3 558,393.97 2,038,205.89TOTAL CURRENT ASSETS 558,393.97 2,038,205.89
ACCUMULATED FUND BALANCEFUND BALANCE AS AT JULY 1, 2016 2,038,205.89 3,095,100.47FUND BALANCE AS AT JUNE 30, 2017 (1,479,811.92) (1,056,894.58)TOTAL ACCUMULATED FUND BALANCE 558,393.97 2,038,205.89
PROGRAM MANAGER, IIU ANAG R, FMUMINISTRY OF PUBLIC WORKS MINISTRY OF FINANCE
DEVELOPMENT PLANNING
NOTES ON PAGES 9-10 FORM AN INTEGRAL PART OF THE FINANCIAL STATEMENTS
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AUDITORS' REPORT ON THE LIBERIA ROAD ASSET MANAGEMENT PROJECT(LIBRAMP) FOR THE YEAR ENDED JUNE 30,2017
LIBERIA ROAD ASSET MANAGEMENT PROJECT(LIBRAM)STATEMENT OF FUND RECEIPTS AND DISBURSEMENTS
FOR THE PERIOD JULY 1, 2016-JUNE 30,2017
JUL.2016- JUL.2015-NOTES JUN.2017 JUN.2016FUND RECEIPTS
US$ US$IDA GRANT 4 50,081,248.13 47,988,200.49TOTAL FUNDS
TOT LFU DS50,081,248.13 47,988,200.49 _DISBURSEMENTS
COMPONENT 1-CIVIL WORKS 5 47,620,415.25 45,705,183.03COMPONENT 2-CONSULTANCY SERVICES 6 3,940,644.80 3,339,912.04TOTAL DISBURSEMENT
51,561,060.05 49,045,095.07
EXCESS OF DISBURSEMENTS OVER RECEIPTS (1,479,811.92) (1,056,894.58)BEGINNING BALANCE AS AT JULY 1, 2016 2,038,205.89 3,095,100.47ACCUMULATED FUND BALANCE AS AT JUNE 30,2017 558,393.97 2,038,205.89
NOTES ON PAGES 9-10 FORM AN INTEGRAL PART OF THE FINANCIAL STATEMENTS
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AUDITORS' REPORT ON THE LIBERIA ROAD ASSET MANAGEMENT PROJECT(LIBRAMP) FOR THE YEAR ENDED JUNE 30, 2017
LIBERIA ROAD ASSET MANAGEMENT PROJECT(LIBRAM)STATEMENT OF CASH FLOWS
FOR THE PERIOD JULY 1, 2016-JUNE 30,2017
JUL. 2016-JUN. JUL. 2015-JUN.NOTE 2017 2016
OPERATING ACTIVITIES US$ US$GRANT RECEIVED 4 50,081,248.13 47,988,200.49TOTAL OPERATING ACTIVITIES 50,081,248.13 47,988,200.49
U INVESTING ACTIVITIESCOMPONENT 1-CIVIL WORKS 5 (47,620,415.25) (45,705,183.03)COMPONENT 2-CONSULTANCY SERVICES 6 (3,940,644.80) (3,339,912.04)TOTAL INVESTING ACTIVITIES (51,561,060.05) (49,045,095.07)
NET (DECREASE) INCREASE IN CASH BALANCE (1,479,811.92) (1,056,894.58)BALANCE AS AT BEGINNING JULY 1, 2016 2,038,205.89 3,095,100.47
BALANCE AS AT JUNE 30,2017 558,393.97 2,038,205.89
NOTES ON PAGES 9-10 FORM AN INTEGRAL PART OF THE FINANCIAL STATEMENTS
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AUDITORS' REPORT ON THE LIBERIA ROAD ASSET MANAGEMENT PROJECT(LIBRAMP) FOR THE YEAR ENDED JUNE 30, 2017
NOTES TO THE FINANCIAL STATEMENTS
1. Liberia road asset management project (LIBRAMP)The Government of Liberia has secured a Credit from the International Development Association(IDA) of the World Bank (the "Bank") towards the reducing of transportation costs along the corridorfrom Monrovia to Guinea border and to maintain the road in good condition over 10-year periodimplemented by Liberia road asset management project (the "project").
The Government of Liberia has designated the Ministry of public works (MPW) to implement theProject through a Project Implementation.Unit (PIU), while financial management of the Project hasbeen assigned to the Project Financial Management Unit (PFMU) at the Ministry of Finance &Development Planning.The Project consists of the following components:
Part A. Component 1-civil worksPart B. Component 2 -consultancy services
2. Accounting PoliciesThe following are the significant accounting policies adopted in the preparation of thesefinancial statements:
a) Basis of accountingThe financial statements have been prepared on the historical cost convention and noprocedures have been adopted to reflect either price changes or changes in the general levelof inflation. The financial statements were prepared under Cash Basis International PublicSector Accounting Standard (IPSAS) promulgated by the International Federation ofAccountants (IFAC), adopted by the Government of Liberia and IDA guidelines stipulated inthe agreement for the project
b) Fixed assetsFixed assets represent the expenditure incurred in capital works and acquiring property andequipment. All fixed assets have been stated at the actual contracted cost of purchase ordevelopment. No depreciation is charged in the financial statements.
c) Foreign Currency translationsTransactions in foreign currencies (currencies other than the United States Dollar] areconverted at the rate ruling at the date at which the transaction took place. Current assetsand liabilities denominated in foreign currencies are translated at the rate of exchange rulingat the balance sheet date and fixed assets at the rate of exchange ruling at the time ofacquisition. Gains or losses arising on foreign currency transactions are credited to orcharged against recurrent expenditure in the period in which they arise.
d) Credit is recognized on cash basis and credited to the project account when received.
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AUDITORS' REPORT ON THE LIBERIA ROAD ASSET MANAGEMENT PROJECT(LIBRAMP) FOR THE YEAR ENDED JUNE 30, 2017
JUL. 2016-JUN. JUL. 2015-JUN.NOTE-3 2017 2016CASH & BANK BALANCE US$ US$
CASH IN BANK 558,393.97 2,038,205.89TOTAL CASH & BANK BALANCE 558,393.97 2,038,205.89
JUL. 2016-JUN. JUL. 2015-JUN.NOTE-4 2017 2016GRANT US$ US$IDA CREDIT: DA RECEIPT IDA 49500 2,624,573.25
IDA CREDIT: DA RECEIPT TF 51670 935,147.58 3,834,691.89IDA CREDIT DIRECT PAYMENT: TF 49500 12,714,407.49 9,178,219.41IDA CREDIT DIRECT PAYMENT: TF 51670 4,140,168.98 13,559,443.66IDA CREDIT DIRECT PAYMENT: TF 99588 29,666,950.83 21,415,845.53TOTAL GRANT 50,081,248.13 47,988,200.49
JUL. 2016-JUN. JUL. 2015-JUN.NOTE-5 2017 2016COMPONENT 1-CIVIL WORKS US$ US$LOT 1: MONROVIA TO GBARNGA-WORKS 31,675,299.07 25,536,183.44LOT 2: GBARNGA-GANTA GUINEA BORDER 15,945,116.18 20,168,999.59
TOTAL COMPONENT 1-CIVIL WORKS 47,620,415.25 45,705,183.03
JUL. 2016-JUN. JUL. 2015-JUN.NOTE-6 2017 2016COMPONENT 2-CONSULTANCY SERVICES US$ US$LOT 1: MONITORING SUPERVISION CONSULTANCY 1,079,573.50 808,237.88LOT 2: MONITORING SUPERVISION CONSULTANCY 819,800.47 1,352,153.81SUPERVISION CONSULTANCY FOR ELWA INTERACTION 134,325.00
TECHNICAL AUDIT 26,243.171INSTITUTIONAL CAPACITY BUILDING 54,878.51 38,420.00TEAM LEADER/CONTRACT ENGINEER 1,150.00PROCUREMENT SPECIALIST 8,000.00 16,000.00TS, 682,364.56 268,312.15TSG
717,123.80 204,034.30OPERATING EXPENSES-PFMU & IIU 552,660.79 517,278.90TOTAL COMPONENT 2-CONSULTANCY SERVICES 3,940,644.80 3,339,912.04
NOTE-7There were noTixed assets acquired during the period.
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AUDITORS' REPORT ON THE LIBERIA ROAD ASSET MANAGEMENT PROJECT(LIBRAMP) FOR THE YEAR ENDED JUNE 30, 2017
DESIGNATED ACCOUNT RECONCILIATION STATEMENTFOR THE YEAR ENDED 30 JUNE 2017
ACCOUNT NUMBER :0011134701659601DEPOSITORY BANK ECOBANK, LIBERIA LIMITED (LTD)ADDRESS : BROAD STREET
MONROVIA, LIBERIA
IDA CREDIT NUMBER :IDA 49500, IDA 51670, TF 99588CURRENCY :US$
JUNE 30, 2017US$DESIGNATED ACCOUNT BALANCE AT JULY 1, 2016 2,038,205.89
ADVANCES/REPLENISHMENT TRANSFERS FROM IDA:LIBRAMP/MOFDP/030
2,624,573.25LIBRAMP/MO FDP/016 935,147.58
TOTAL 5,597,926.72OTHER RECEIPTS (SALE OF BID DOCUMENTS)
LESS DISBURSEMENTS 5,039,532.75
BALANCE AS AT JUNE 30, 2017 558,393.97
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MGI MONBO & COMPANYCERTIFIED PUBLIC ACCOUNTANTS
Member Firm of MIDSNELL GROUP INTERNATIONAL
INDEPENDENT AUDITORS' REPORT ON THE DESIGNATED ACCOUNT STATEMENTFOR THE LIBERIA ROAD ASSET MANAGEMENT PROJECT (LIBRAMP)
We have audited the accompanying project Designated Account Statement of the Liberia Road AssetManagement Project (LIBRAMP) financed by the International Development Association Credit asstated in this report for the period ended June 30, 2017.
Management's ResponsibilityThe Designated Account Statement preparation and the fair presentation of this Statement is theresponsibility of the Project Financial Management Unit (PFMU) at the Ministry of Finance &Development Planning, Republic of Liberia. This responsibility includes: designing, implementing,and maintaining internal control relevant to the fair presentation of the Designated AccountStatement that is free from all material misstatement, whether due to fraud or error, selecting andapplying appropriate accounting policies: and making accounting estimates that are reasonable inthe circumstances..
Auditor's ResponsibilityOur responsibility is to express an opinion on the Designated Account Statement based on our audit.We conducted our audit in accordance with International Standards on Auditing promulgated by theInternational Federation of Accountants. These Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance whether the projectfinancial statements are free of material misstatement
An audit involves performing procedures to obtain audit evidence about the amounts and disclosuresin the Designated Account Statement. The procedures selected depend on the auditor's judgement,including the assessment of the risks of material misstatement of the Designated Account Statement,whether due to fraud or error. In making those risk assessments, the auditor considers internalcontrol relevant to the entity's preparation and fair presentation of the Designated AccountStatement in order to design audit procedures that are appropriate in the circumstances, but not forthe purpose of expressing an opinion on the effectiveness of the entity's internal control. An auditalso include evaluating the appropriateness of accounting policies used and the reasonableness ofaccounting estimates made by management as well as evaluating the overall presentation of theDesignated Account Statement.
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King's Building 2nd Floor P. 0. Box 3196 Cell: +231-6512549Broad & Gurley Streets Monrovia, Liberia E-mail: [email protected], Liberia
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A /ITORS' REPORTNTIKKLIBERIAHOAD ASSETMANAGEMENT PROJECT(LIBRAMP) FOR THE YEAR ENDED JUNE 30,2017
In our opinion, the receipts have been properly accounted for and disbursements were made for thepurpose of the project in accordance. with the provisions of the International Development
Association Grant.
MONB0 8/ COMPANy
MGI-MONBO AND COMPANYCERTIFIED PUBLIC ACCOUNTANTS
October 30,2017
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MGI MONBO & COMPANYCERTIFIED PUBLIC ACCOUNTANTS
Member Firm of MIDSNELL GROUP INTERNATIONAL
INDEPENDENT AUDITORS' REPORT ON THE STATEMENT OF EXPENDITUREFOR THE LIBERIA ROAD ASSET MANAGEMENT (LIBRAMP)
We have audited the accompanying project Statement of Expenditure of the Liberia Road AssetManagement Project financed by the International Development Association Credit as stated in thisreport for the year ended June 30, 2017 and obtained all related information required.
Managements ResponsibilityThe Statement of Expenditure preparation and the fair presentation of this Statement is theresponsibility of the Project Financial Management Unit (PFMU) at the Ministry of Finance &Development Planning, Republic of Liberia. This responsibility includes: designing, implementing,and maintaining internal control relevant to the fair presentation of the Statement of Expenditurethat is free from all material misstatement whether due to fraud or error, selecting and applyingappropriate accounting policies: and making accounting estimates that are reasonable in thecircumstances.
Auditor's ResponsibilityOur responsibility is to express an opinion on the Statement of Expenditure based on our audit Weconducted our audit in accordance with International Standards on Auditing promulgated by theInternational Federation of Accountants. These Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance whether the projectfinancial statements are free of material misstatement
An audit involves performing procedures to obtain audit evidence about the amounts and disclosuresin the Statement of Expenditure. The procedures selected depend on the auditor's judgement,including the assessment of the risks of material misstatement of the Statement of Expenditure,whether due to fraud or error. In making those risk assessments, the auditor considers internalcontrol relevant to the entity's preparation and fair presentation of the Statement of Expenditure inorder to design audit procedures that are appropriate in the circumstances, but not for the purposeof expressing an opinion on the effectiveness of the entity's internal control. An audit also includeevaluating the appropriateness of accounting policies used and the reasonableness of accountingestimates made by management as well as evaluating the overall presentation of the Statement ofExpenditure.
In our opinion, the Statement of Expenditure present fairly the view of the financial transactions ofthe Liberia Road Asset Management Project for the fiscal year ended June 30, 2017 is in accordancewith the Cash Basis International Public Sector Accounting Standards (IPSAS), adopted by theGovernment of Liberia and relevant provision of the Grant Agreement
King's Building 2nd Floor P. 0. Box 3196 Cell: +231-6512549Broad & Gurley Streets Monrovia, Liberia E-mail: [email protected], Liberia
AUDITORS' REPORT ON THE LIBERIA ROAD ASSET MANAGEMENT PROJECT(LIBRAMP) FOR THE YEAR ENDED JUNE 30, 2017
Additionally, with respect to the Statements of Expenditure (SOEs), sufficient supportingdocumentations have been maintained in accordance with Cash Basis International Public SectorAccounting Standards promulgated by the International Federation of Accountants and therequirement of the World Bank guidelines.
The expenditures are eligible under the International Development Association Grant agreement.
COMPANY
MGI-MONBO AND COMPANY 4CERTIFIED PUBLIC ACCOUNTANTS -
October 30,2017
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AUDITORS' REPORT ON THE LIBERIA ROAD ASSET MANAGEMENT PROJECT(LIBRAMP) FOR THE YEAR ENDED JUNE 30, 2017
LIBERIA ROAD ASSET MANAGEMENT PROJECT (LIBRAM) JULY 1, 2016-JUNE 30, 2017SCHEDULE OF EXPENDITURE COMPONENT
TOTALEXPENDITURE AMOUNT PAIDNO. COMPONENT (USD)
1 COMPONENT 1-CIVIL WORKS 47,620,415.252 COMPONENT 2-CONSULTANCY SERVICES 3,940,644.80
51,561,060.05
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MGI MONBO& COMPANYCERTIFIED PUBLIC ACCOUNTANTS
Member Firm of MIDSNELL GROUP INTERNATIONAL
Mr. Emmanuel BakerProgram ManagerLIBRAMP Liberia ProjectMinistry of Public WorksMonrovia, Liberia
Dear Sir:
Ref: Management letter
As part of our audit, it is our responsibility to report to management our observations and
recommendations for improvement In the audit of the Liberia Road Asset Management Project
(LIBRAMP), significant matters that could have warrant a management letter did not come to our
attention as such we did not issue a management.
MONBOSCOMPANY
MGI-MONBO AND COMPANY OINTs,CERTIFIED PUBLIC ACCOUNTANTS
October 30,2017
King's Building 2nd Floor P. 0. Box 3196 Cell: +231-6512549Broad & Gurley Streets Monrovia, Liberia E-mail: [email protected], Liberia