ADDITIONAL FINANCING FOR PALESTINIAN NGO-IV PROJECT FUNDED BY INTERNATIONAL DEVELOPMENT ASSOCIATION - IDA MANAGED BY NGO DEVELOPMENT CENTER - NDC STATEMENT OF PROJECT ACTIVITIES AND SCHEDULE OF THE MOVEMENTS OF THE PROJECT SPECIAL BANK ACCOUNT FOR THE PERIOD FROM JANUARY 1, 2015 TO DECEMBER 31, 2015 AND INDEPENDENT AUDITOR'S REPORT Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized
Transcript
ADDITIONAL FINANCING FOR PALESTINIAN NGO-IV PROJECT
FUNDED BY INTERNATIONAL DEVELOPMENT ASSOCIATION - IDA
MANAGED BY NGO DEVELOPMENT CENTER - NDC
STATEMENT OF PROJECT ACTIVITIES AND SCHEDULE OF THE MOVEMENTS OF THE PROJECT SPECIALBANK ACCOUNT
FOR THE PERIOD FROM JANUARY 1, 2015 TO DECEMBER 31, 2015
AND INDEPENDENT AUDITOR'S REPORT
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NGO Development Center (NDC)Additional Financing For Palestinian NGO-IV ProjectFor the Period from January 1, 2015 to December 31, 2015
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 statement 6
pwc
Independent Auditor's ReportTo the Board of Directors of NGO Development Center (NDC)Jerusalem - Palestine
We have audited the accompanying statement of activities and schedule of movement of theSpecial Bank Account of the Project titled "Additional Financing For Palestinian NGO-IV"(hereinafter "the Project"), funded by the International Development Association (hereinafter"IDA or the Bank"), and managed by NGO Development Center (hereinafter "NDC"), for theperiod from January 1, 2015 to December 31, 2015, and a summary of significant accountingpolicies and other explanatory information.
Management's Responsibility for the Financial Statement and the ScheduleManagement is responsible for the preparation of the financial statement and schedule inaccordance with the basis of accounting described in Note (2), this includes determining that themodified cash basis of accounting is an acceptable basis for the preparation of the financialstatement in the circumstances, and for such internal control as management determines isnecessary to enable the preparation of the financial statement that is free from materialmisstatement, whether due to fraud or error.
Auditor's ResponsibilityOur responsibility is to express an opinion on the financial statement and the schedule based onour 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 theaudit to obtain reasonable assurance about whether the financial statement and the schedule arefree from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statement and the schedule. The procedures selected depend on theauditor's judgment, including the assessment of the risks of material misstatement of thefinancial statement and the schedule, whether due to fraud or error. In making those riskassessments, the auditor considers internal control relevant to the entity's preparation of thefinancial statement in order to design audit procedures that are appropriate in thecircumstances, but not for the purpose of expressing an opinion on the effectiveness of theentity's internal control. An audit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness of accounting estimates, if any, made by management, aswell as evaluating the overall presentation of the financial statement.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide abasis for our audit opinion.
PricewaterhouseCoopers Palestine Limited, P.O.Box 1317, Masrouji Building 201, El-Bireh (Ramallah), PalestineT: +972 2 242 023o, F: +972 2 242 0231, Note: From Arab Countries Dial 970 instead of 972www.pwc.com/middle-east
2
PWC
OpinionIn our opinion, the financial statement and the financial information in the Schedule of theMovements of the Project Special Bank Account are prepared, in all material respects, inaccordance with the basis of accounting described in Note (2) and the terms of the agreementswith the Bank to reflect the Project revenues and expenditures eligible to the Bank financing.
Basis of AccountingWithout modifying our opinion, we draw attention to Note (2) to the financial statement, whichdescribes the basis of accounting. Tb ;,financial statement is prepared to provide information tothe NDC and the Bank. As a r t' the financial statement may not be suitable for anotherpurpose.
Pricewater s pers Palestine LimitedMarch , 16R ah, Palestine
PricewaterhouseCoopers Palestine Limited, P.O.Box 1317, Masrouji Building 201, El-Bireh (Ramallah), PalestineT: +972 2 242 0230, F: +972 2 242 023i, Note: From Arab Countries Dial 970 instead of 972www.pwc.com/middle-east
NGO Development Center (NDC)Additional Financing For Palestinian NGO-IV ProjectFor the Period from January 1, 2015 to December 31, 2015
STATEMENT OF PROJECT ACTIVITIES(All amounts in USD)
For the Period Cumulativefrom January from August 26,
1, 2015 to 2013 toProject Budget December 31, December 31,
- The notes on pages 6 to 10 are an integral part of the financial statement.
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NGO Development Center (NDC)Additional Financing For Palestinian NGO-IV ProjectFor the Period from January 1, 2015 to December 31, 2015
NOTES TO THE FINANCIAL STATEMENT AND Schedule of the Movement of the Project SpecialBank Account(All amounts in USD)
NOTE (1) GENERALNGO Development Center (NDC) was registered with the Ministry of Interior on March 4, 2006 underregistration no. (OR 286-B) as a Palestinian Non-governmental Organization (NGO). NDC started its normalactivities on July 1, 2006.
NDC is working hand-in-hand with Palestinian NGOs and community development organizations toenhance their service delivery and build more capable and representative Palestinian civil society. NDCprograms and grants empower Palestinians by providing NGOs the skills, tools and funds they require toaddress social needs and promote self-reliance in adversity. The organization advocates greater NGOtransparency and accountability through the adoption of professional financial and management practices,and promotes sector-wide coordination and sharing of best practice experiences.
During 2013, NDC entered into a financing agreement (Grant Number TF015033) with InternationalDevelopment Association (IDA or the Bank) concerning the project titled "Additional Financing forPalestinian NGO-IV " (the Project). Under this agreement; the IDA agreed to grant NDC an amount of USD5,000,000 to implement the Project over the period of three years; from August 26, 2013 to September 30,2016. Accordingly, the budget on the face of the financial statement represents the whole budget of theproject.
The objective of the Project is to provide social services through NGOs to those who are poor, vulnerableor marginalized and to strengthen the institutional capacity of these NGOs.
The Project consists of the following parts/components:* Part 1: Grants for services delivery,* Part 2: NGO sector development, and* Part 3: Project management, monitoring and evaluation.
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 yearend accrualsand prepayments
b) Special Bank AccountAs required under the signed agreement with IDA under section IV A-1 which refers to the provisions ofArticle Ill of the Standard Conditions, NDC opened a special bank account for the Project as to make allwithdrawals 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 date ofeach transaction.
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NGO Development Center (NDC)Additional Financing For Palestinian NGO-IV ProjectFor the Period from January 1, 2015 to December 31, 2015
NOTES TO THE FINANCIAL STATEMENT AND SCHEDULE OF THE MOVEMENT OF THE PROJECTSPECIAL BANK ACCOUNT(All amounts in USD)
NOTE (3) IDA REPLENISHMENTSThis amount represents the installments received from IDA:
For the Period From Inceptionfrom January 1, on August 26,
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NGO Development Center (NDC)
Additional Financing For Palestinian NGO-IV Project
For the Period from January 1, 2015 to December 31, 2015
NOTES TO THE FINANCIAL STATEMENT AND SCHEDULE OF THE MOVEMENT OF THE PROJECT
SPECIAL BANK ACCOUNT
(All amounts in USD)
NOTE (6) INCREMENTAL OPERATING COSTS
For the Period Cumulative
from January 1, from August 26,
2015 to 2013 to
December 31, December 31,
Date 2015 2015
Staff-salaries and benefits 542,725 719,588
Rent, operation and maintenance of office
and office equipment 51,741 64,186
Transportation and travel, including per
them allowances 7,046 7,892
Vehicles running cost 13,312 17,619
Office supplies 9,472 11,605
Communication costs 13,396 19,332
Bank charges 529 681
Meeting costs 21089 6,838
Office administration including printing,
translating and advertising 18,224 23,199
658,534 870,940
NOTE (7) DUE TO NDC
This amount represents a transfer made by NDC to the special bank account to cover the
Project expenses as a result of the shortage in the available funds in the special bank account
until receiving the IDA transfers.
NOTE (8) PROJECT SPECIAL BANK ACCOUNT BALANCE
This represents the balance, of USID 90,589, outstanding in the Project special bank account as
of December 31, 2015. This bank account details are as follows:
