On Fri, 16 Jun 2017 at 17:28, ejalonibu rashidat<[email protected]> wrote:
Dear ma,kindly find attached financial statement for lagos state commercial development project for 2016 as discussedma.Best regards ma.
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Accountants &business adv srs
LAGOS STATE COMMERCIAL AGRICULTUREDEVELOPMENT PROJECT
(INTERNATIONAL DEVELOPMENT ASSOCIATION IDA CREDIT NO. 45390)
FINANCIAL STATEMENTS31 DECEMBER 2016
LAGOS STATE COMMERCIAL AGRICULTUREDEVELOPMENT PROJECTS(INTERNATIONAL DEVELOPMENT ASSOCIATION IDA CREDIT NO. 45390)
Contents Page
Corporate liformation 1
Independent auditor's report 2
Statement of significant accounting policies 3
Balance sheet 4
Statement of receipts and payments 5
Notes to the Financial Statements 6
ANNEXURESStatement of special account - Naira
Staternent of special account - Dollar
Statement of drawdown
Statement of reconciliation of drawdown
F-xed assets schedule v
LAGOS STATE COMMERCIAL AGRICULTUREDEVELOPMENT PROJECTS(INTERNATIONAL DEVELOPMENT ASSOCIATION IDA CREDIT NO. 45390)
CORPORATE INFORMATION
THE PROJECT
The project seeks to strengthen agricultural production systems and facilitate access to market for small andmed'um scale commercial farmers engaged in targeted value chains, (aquaculture, rice and poultry) amongsmall and medium scale commercial farmers in Lagos State
The project has three major components, namely:Agricultural production and commercialization;Improvement in rural infrastructure (road and energy);Project management, monitoring and evaluation.
Project Implementation Unit (PIU)The project Implementation Unit remains the organ that carries out the day-to-day execution of Lagos StateCommercial Agric Development Project.
The Project Implementation Unit (PIU) has a state Project Coordinator and other key staff as detailed below*
(ii State Project Coordinator - Mr. Kehinde Ogunyinka(i) Agric productivity and Advisory Service Officer - Mr. Afolabi Victor(ti) Procurement Officer - Mr. Musiliu Badmus(iv) Monitoring & Evaluation Officer - Mr. Babatunde Y. Yunusa(v) Communication & Business Dev. Officer - Mrs. Aramide L. Gansallo
Rural Infrastructure Officer - Engr. Aliru A. AladevPi Communication Officer - Mrs. Folake Oguniana-Lawal
(vi) Environment Officer - Mr. Olawale Oke(ix) Training Officer - Mrs. lsekhure Adedoyin
Project Financial Management Unit (PFMU)The Projects financial management unit is the organ that is responsible for accounting records, internalcontrols, internal audit and assistance for external audit work.
The members of the Project Financial Management Unit are:
Head, PFMU - Mrs. Moriliat M. GaniyuSProject Accountant - Mrs. Latifat 0. Oyede. Protect Finance Officer - Mrs B. B. Adebayo-Buhari
_ internal Auditor - Mrs Abdul T. Olufunke
LAGOS STATE COMMERCIAL AGRICULTUREDEVELOPMENT PROJECTS(INTERNATIONAL DEVELOPMENT ASSOCIATION IDA CREDIT NO. 45390)
CORPORATE INFORMATION
A Bankers: Fidelity Bank Pic
B. AUDITORS: PKF Professional Services(Chartered Accountants)205A Ikorodu Road, Obanikoro,Lagos, NigeriaP.O.Box 2047 Marina,Tel: (01) 7734940,7748366
C LEGAL ADVISERS: Lagos State Ministry of Justice,Block 2, The State Secretariat,Alausa, IkejaLagos State, Nigeria.
D CO-FINANCERS: The International Bank for Reconstruction &Development (The World Bank)International Development Association1818 H Street, N.W. Washington DC20433, U.SA.
E. ACCOUNTING REFERENCE DATE: 31 December 2016
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PKF Professional Services
Chartered Accountants &business advisers
Independent Auditor's Report
Lagos State Commercial Agriculture Development Projects'international Development Association IDA Credit No. 45390)
Opinionn our opinion, the financial statement present fairly, in all material respects the financial position of Lagos State
Commercial Agricultural Development Project as at 31 December 2016 and of its financial performance forthe year then ended. The Project Financial Management Unit has kept proper books of account, which are inagreement with the balance sheet and statement of receipts and payments in the manner required by the LoanAgreement, IDA Credit Number 45390 and in accordance with the Statements of Accounting Standards issuedby the Financial Reporting Council of Nigeria.
The Statements of Expenditure (SOE) are in agreement with the books of account and adequate supportingdocumentation has been maintained to support claims to the World Bank for reimbursements of expendituresncurred; and which expenditures are eligible for financing under the credit agreement.
The Statement of Special Account (SA) of the Project has been prepared on the basis of cash deposits andwithdrawals for purpose of complying with the credit agreement and gives a true and fair view of the beginningand ending balances and the accounts transactions for the year ended 31 December 2016.
Basis for OpinionWe conducted cur audit in accordance with International Standards on Auditing IISAs). Our responsibilitiesunder those standards are further described in the Auditor's Responsibilities for the Audit of the FinancialStatements section of our report. We are independent of the Project Financial Management Unit in accordance
ith the International Ethics Standards Board for Accountants' Code of Ethics for Professional AccountantsCode) together with the ethical requirements that are relevant to our audit of the financial statements in
Nigera and we have fulfilled our other ethical responsibilities in accordance with these requirements and theESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide abasis for our opinion.
Project Managers' Responsibility for the Financial Statementshe Project Manager are responsible for the preparation and fair presentation of the financial statements in
accordance with Loan Agreement, IDA Credit Number 45390 and, for such internal control as tho ProjectManagers determine is necessary to enable the preparation of financial statements that are free from materialmisstatement whether due to fraud or error.
The Lagos slate government is responsible for overseeing the Project Financial Management Unit financlalreporting process.
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AW
Accountants &business adv;sers
Auditor's Responsibilities for the Audit of the Financial StatementsOur objectives are to obtain reasonable assurance about whether the financial statements as a whole are freefrom material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our
Mad opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted inaccordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if, individually or in the aggregate, they could reasonably be expectedto influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with 1SAs, we exercise professional judgment and maintain professionalskepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud orerror, design and perform audit procedures responsive to those risks, and obtain audit evidence that issufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher 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 audit procedures that areappropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of theProject's internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimatesand related disclosures made by the Project Managers.
* Evaluate the overall presentation, structure and content of the financial statements, including the disclosures,and whether the financial statements represent the underlying transactions and events in a manner thatachieves fair presentation.
We communicate with the those charged with governance regarding, among other matters, the planned scopea tming of the audit and significant audit findings, including any significant deficiencies in internal control thatwe identify during our audit.
The engagement partner on the audit resulting in this independent auditor's report is Olatunji Ogundeyin.
(fatunji Ogundeyin, FcAFRC/2013/ICAN/02224For: PKF Professional ServicesChartered Accountants
La os,Ngria
Dated: .. ....02017
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LAGOS STATE COMMERCIAL AGRICULTUREDEVELOPMENT PROJECTS(INTERNATIONAL DEVELOPMENT ASSOCIATION IDA CREDIT NO. 45390)
STATEMENTS OF SIGNIFICANT ACCOUNTING POLICIESFOR THE PERIOD ENDED 31 DECEMBER 2016
The following are the significant account policies, which have been adopted by the preparation of its Projectfinancial statements:
a) Basis of AccountingThe accounts are prepared under the cash accounting basis. Income and charges relating to a specificfinancial year are taken into account only when the related cash are received or paid. Also no adjustmentshave been made to reflect the impact on the financial statements of specific price changes in the generallevel of prices.
b) IncomeIncome from interest on Domiciliary Account is realized when the current account is credited while incomefrom other sources are credited when cash is received,
c) Fixed assetsFixed assets disclosed are those intended for use over a period exceeding one accounting year, Nodepreciation is charged on fixed assets.
d) Foreign Currenciesi ransactions denominated in foreign currencies are recorded at the rate in force when such transactionswere consummated. All monetary assets and liabilities denominated in foreign currencies are convertedat the year-end exchange rate and the resulting exchange differences are dealt with in the Balance sheetas exchange equalization reserve.
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LAGOS STATE COMMERCIAL AGRICULTUREDEVELOPMENT PROJECTS(IDA CREDIT No.45390)
BALANCE SHEETAS AT 31 DECEMBER 2016
2016 2015Notes N N
Assets employedFixed assets 2 59,558,963 59,558,963Project expenditure 3 3,984,284,271 3,687,585 484Cash and bank balances 6 225,282,303 135,601,938
4,269,125,537 3,882,746.385
Financed byWorld Bank (IDA) credit 4 6,207,674,189 3,796,303,680Lagos State Government counterpart fund 5 818,390,770 806,000,000Exchange equalisation fund 7 (2,756,939,422) (719,557.295)
4,269,125,537 3,882,746.385
The finana statements were approved by the Project Managers on ... . .. and signed on itsbeha fby
. .. . Project Coordinator
............ Head, PFMU
.. ..... ... ......... Project Accountant
The satemen of significant accounting policies and the accompanying notes form an integral part of theseifnacal statements.
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LAGOS STATE COMMERCIAL AGRICULTUREDEVELOPMENT PROJECTS(IDA CREDIT No.45390)
RECEIPTS AND PAYMENTS ACCOUNTSFOR THE YEAR ENDED DECEMBER 2016
2016 2015Notes N N
ReceiptsExternal fund (IDA) 4 330,720,257 245,535,429Counterpart fund - Lagos State Government 5 12,390,770 -nterest received from Naira A/C 21,692 228,765merest received from Dollar A/C 818,224 372,506Miscellaneous receipt/sales of tender document 154,300 1.187,277
Excess of receipts over payments 46,412,240 (105,335,108)
Balance brought forward 135,601,938 225.037,923
Exchange equalisation fund 43,268,125 15,899126
Balance carried forward 225,282,303 135,601,938
LAGOS STATE COMMERCIAL AGRICULTUREDEVELOPMENT PROJECTS(IDA CREDIT No,45390)
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED DECEMBER 2016
1. The project
The Lagos State Commercial Agriculture Development Project (LSCADP) is a comprehensive five-year(2009 - 2014) project developed by the Federal Ministry of Agriculture and Water Resources (FMAWR) incollaboration with the World Bank and other stakeholders. The project was however restructured and thelife extended to 30 June 2017.The project aim to :(i) stregthen agricultural production systems, and (ii) facilitate access to market forsmall and medium scale commercial farmers engaged in targeted agricultural value chains includingacquaculture, cocoa, dairy, fruit trees, maize, palm oil. poultry, and rice in the participating states.
2. Fixed assetsOffice
Equipments Motor Generating Totaland Furniture Vehicle Sets
N N N N
At 1 January 40,613,774 11,191,500 7,753,689 59,558,963Additions in the year - - _ _
At 31 December 40,613,774 11,191,500 7,753,689 59,558,963
Project fixed assets are not depreciated in line with the project accounting policies
Cummulative 01 Jan. 2016 CummulativeAt 31 December to to
3.1 Training and capacity buildingDemonstration and dissemination of technologies 32,458,968 - 324 8,968Training of CADA and others 46,047,376 9,595,430 36 451.946Training support to relevant institution 37,436,782 - 37 436782Tr g city building for CADA, CIG 32,832,094 - 32 832 094Fed visIts to CGG ADA and intervention 91,384,731 92 384 31Capacity building -Training- SCADO 171,651,043 2,937,268 168 713,75Awareness and Knowledge sharing 9,412,804 . 412 804rainng of Youth and Women 43,460,550 35,979.628 7 480.922
464,684,348 48,512,328 416 172022
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LAGOS STATE COMMERCIAL AGRICULTUREDEVELOPMENT PROJECTS(IDA CREDIT No.45390)
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED DECEMBER 2016
Cummulative 01 Jan. 2016 CummulativeAt 31 December to to
Stationery 15,525,985 1,225,795 14,300,190Travelling expenses - Local 93,637,817 5,535,666 88,102,151Travelling expenses - Foreign 6,402,258 - 6,402,258Miscellaneous expenses 5,964,014 197300 5,766,714Conference and seminar 76,218,047 41683,035 71,535,012GSM cards and internet 35,234,039 1,751,000 33,483,039Servicing of MPRMA 1,431,150 - 1,431,150Meeting with LASDA Ministry and others 29,692,229 220250 29,471,979Advertisement 38,068,078 5,736,761 32,331,317Monthly productivity allowance 275,750,697 16,229,420 259,521,277Welfare package for staff 1,200,400 - 1,200,400Running cost to PFMU 12,052,623 600,000 11,452,623Renovation building 4,412,722 - 4,412.722Fuelling 46,329,652 1,755,921 44,573.731Printing 10,603,800 45 000 10.558,800Office repairs and maintenance 6,777,859 458,000 6319859Fexib accounting maintenance 813,042 224,894 588,148nsurance 10,210,794 - 10,210,794
AudO-t fee8,522,592 1,395,600 7,126,992eld vists to CIG, CADA and intervention sites 13,041,881 146,000 12,895,881
Operation and maintenance of equipment 8,082,113 356,000 7,726,113Operation and maintenance of vehicles 7,031,851 223,000 6,808,851Uti ity bill 2,867,387 99,851 2,7657,36Baseine s-urvey 5,055,898 5,055,898
ord bank supervision mission 109,335,645 5,263;321 104,072.324Travejng expenses - NCO 4,512,220 4.512,220Bidd-n openino process 2,839,694 2,839,694Eret'on of sicnpost 1,725,600 1,725,600Mid Term Review 5,727,804 5, 727,804Promotiona tems 4,714,700 4,714,700
3,3 GrantsM~a~ch ng grant(DA 996,7291547 70,973526 q- '
Sort to stabe oo grant 33,545,931 2
vestrt P a178,751,886 12 8,355,6 292o37,s92,628 a27, 8 9 2,62
nvestmen P' an 314,27,400 243.00 '
LAGOS STATE COMMERCIAL AGRICULTUREDEVELOPMENT PROJECTS(IDA CREDIT No.45390)
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED DECEMBER 2016
Cummulative 01 Jan. 2016 CummulativeAt 31 December to to
2016 31 Dec. 2016 31 Dec. 2015N N N
3.4 ConsultancyCapacity building: Consultancy 13,434,302 - 13,434,302Design of energy 4,231,461 4,231,461Management information system (MIS) 230,000 - 230,000Impact evaluation and beneficiary assessment 4,927,892 920.000 4,007,892Construction, rehabilitation and maintenace 1,237,020,419 - 1,237.020,419Supervision and monitoring of roads- Consultancy 28,157,105 - 28,157,105Monitoring of environmental management plans 633,000 198,000 435,000Price market survey 2,422,300 - 2,422,300Baselhne survey consultancy 6,919,826 - 6,919.826Rehabilitation and Maintenance of rural energy(Good and Equipment) 102,064,378 - 102.064,378Supervision of rural energy 4,616,544 - 4,616,544Market facilitation 28,976,881 28 976,881Production and Post harvest Managementtechnology 1,765,928 - 1.765928Post harvest handling centres 1,765,928 - 1,765928
1,437,165,964 1,118,000 1,436,047,964
3.5 Other receiptsMiscelaneous income 3,574,585 54.300 3.420,285interest received from Nala A/C 13,300,602 21,692 13.278 910lnterest received from Doclar A/C 4,364,057 818,224 3,545,833Sales of tender document 3,180.000 - 3180 000
24.419.244 9 94,2 6 240~
2016 2015N N
4. World Bank (IDA) credit
At 1 January 3,796,303,680 3 029.330.919Conbuon during the year 330,720,257 245535 429Excne differenc 2,080,650,252 521 4332
t 31 December 6207.674,189 3,796 303,680
2016
orId Bank (IDA) credit - DollarAt 1 auary 1931961.Contrun~ dur,ng the y,ear 1, 06.840 2- ~5 7At 31 Decembe.r 20386,41
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LAGOS STATE COMMERCIAL AGRICULTUREDEVELOPMENT PROJECTS(IDA CREDIT No.45390)
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED DECEMBER 2016
Cummulative 01 Jan. 2016 CummulativeAt 31 December to to
2016 31 Dec. 2016 31 Dec. 2015N N N
3.4 ConsultancyCapac ty building: Consultancy 13,434,302 - 13,434,302Design of energy 4,231,461 4.231,461Management information system (MIS) 230,000 - 230,000Impact evaluation and beneficiary assessment 4,927,892 920,000 4,007,892Construction, rehabilitation and maintenace 1,237,020,419 - 1,237.020,419Supervision and monitoring of roads- Consultancy 28,157,105 - 28157,105Monitoring of environmental management plans 633,000 198,000 435,000Price market survey 2,422,300 - 2,422,300Baselne survey consultancy 6,919,826 - 6,919.826Rehabilitation and Maintenance of rural energy(Good and Equipment) 102,064,378 - 102,064,378Supervision of rural energy 4,616,544 4,616,544Market facilitation 28,976,881 28,976,881Production and Post harvest Managementtechnology 1,765,928 - 1,765,928Post harvest handling centres 1,765,928 - 1,765,928
1,437,165,964 1,118000 1,436,047,964
3.5 Other receiptsMi5scel aneous income 3,574,585 154,300 3.420,285
terest received fron Na,za A/C 13,300,602 21 692 13,278,910nterest received from Dalar A!C 4,364,057 818 224 3,545,833Sa'es of tender document 3,180,000 - 3.180 00
24,419,244 994,216 23.425.028
2016 2015N N
4. World Bank (IDA) credit
At 1 January 3,796,303,680 3,029.330 919Contribution during the year 330,720,257 245.535429Excnange difference 22080650.252 521.437.332
At 31 December 6207, 674189 3,796,303,68
2016 2015
4 Wor Bank (IDA) credit -DollarAt1January 19,319,61" 18 085 557
Contribution during the year 1,066,840 234 054
At31 December 20386451 13196
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LAGOS STATE COMMERCIAL AGRICULTUREDEVELOPMENT PROJECTS(IDA CREDIT No.45390)
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED DECEMBER 2016
2016 2015N N
5. Lagos State Government counterpart fund
At 1 January 806,000,000 806,000,000Contribution during the year 12,390,770 -
Exchange gain on special accounts 63,414,116 20.145,991Exchange Loss on IDA Credit (2,820,353,638) (739,703286)
At 31 December (2,756,939,422) (7 19 557,295)
7.1 Exchange gain on special accountsAt 1 January 20,145,991 4,246,865Exchange differences in the year 43,268.125 15,899,126
At 31 December 63,414,116 20 145,991
The exchange differences on the special account representsdifferences on both the special account of N42,742,460 and onthe interest on spccial account of N525,665.
7 2 Exchange Loss on IDA CreditAt I january (739,703,286) (28 265954)Exchange diffeiences iin the year (2,080,650,252) (51 437332)
At 31 December 2,820,353,538)
LAGOS STATE COMMERCIAL AGRICULTUREDEVELOPMENT PROJECTS(IDA CREDIT No.45390)
STATEMENT OF SPECIAL ACCOUNT - NAIRA
AS AT 31 DECEMBER 2016
Annexture i
2016 2015N N
At' January 102,387,740 92,048.132
Receipt in the year 330,720,257 245,535,429Interest received 818,225 -
433,926,222 337,583,561
Less Withdrawals (273,349,247) (251,051,736)Bank charges (59,102) (43,210)
160,517,873 86,488,615
Exchange gain 42,742,460 15,899,125
At 31 December 203,260,333 102,381,740
LAGOS STATE COMMERCIAL AGRICULTUREDEVELOPMENT PROJECTS(IDA CREDIT No.45390)
STATEMENT OF SPECIAL ACCOUNT - US DOLLARSAS AT 31 DECEMBER 2016
Annexture ii
2016 2015US$ US$
Balance brought forward 521,057 547,073Receipt in the year 1,066,840 1,234,054nterest received 3,335 -
