AUDITORS' REPORT

ON THE FINANCIAL STATEMENTS OF THELIBERIA ROAD ASSET MANAGEMENT PROjECT

IMPLEMENTED BY THE

MINISTRY OF PUBLIC WORKSFOR THE FISCAL YEAR ENDED IUNE 30. 2016

't4iAT~NJlA Q,t'nV PAVTV f IVVTjPjVF% PjTnj Ir Aj-j-"TXJTAN%TQ

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

AUDITORS' REPORT ON THE LIBERIA ROAD ASSET MANAGEMENT PROJECT(LIBRAMP) FOR THE YEAR ENDED JUNE 30, 2016

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 B

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

MGI - MONBO & COMPANY, CERTIFIED PUBLIC ACCOUNTANTS Page 2

AUDITORS' REPORT ON THE LIBERIA ROAD ASSET MANAGEMENT PROJECT(LIBRAMP) FOR THE YEAR ENDED JUNE 30, 2016

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 Director2. 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 Accountant

AUDITORS

MGI MONBO & COMPANYCertified Public Accountants2nd Floor King's BuildingCorner Broad & Gurley StreetsMonrovia, Liberia

MGI - MONBO & COMPANY, CERTIFIED PUBLIC ACCOUNTANTS Page 3

MGIMONBO & COMPANYCERTIFIED PUBL IC ACCOUNTANTS

Mcmber Firm of'MIDSN ,L, GROUP INTERNATIONALMr. Emmanuel K. BakerProgram DirectorLIBRAM 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, 2016 and a

summary of significant accounting policies and explanatory notes on pages 9-10.

Management's ResponsibilityThese financial statements preparation and fair presentation in accordance with International

Public Sector Accounting Standards (IPSAS), adopted by the Government of Liberia and withrelevant provisions of the Project Grant Agreement is the responsibility of the management of the

Project Implementation Unit of the Ministry of Public Works and the Project Financial ManagementUnit of the Ministry of Finance & Development Planning. These responsibilities include; designing.

implementing and maintaining internal controls relevant to the preparation and fair presentation

of financial 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

in the 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 AnditInstitution (INTOSA). These Standards require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance whether the project financial statements arefree of material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the project financial statements. The procedures selected depend on the auditor'sjudgement, including the assessment of the risks of material misstatement of the project financialstatement, whether due to fraud or error. In making those risk assessments, the auditor considersinternal control relevant to the entity's preparation and fair presentation of the project financistatements in order to design audit procedures that are appropriate in the circumstances, but notfor the purpose of expressing an opinion on the effectiveness of the entity's internal controf Anaudit also include evaluating the appropriateness of accounting policies used and thereasonableness of accounting estimates made by management as well as evaluating the overapresentation of the project financial statements.

Kings Building 2nd Fooru P. 0. Box 3196 Cei: +231-65 2549Broad & Grly Streets Monrovia. Liberia E-mail: monboco@yahno comMonrovi>a, Liberia

A; JDITORS' REPORT ON THE LIBERIA ROAD ASSET MANAGEMENT PROJECT(LIBRAMP) FOR THE YEAR ENDED JUNE 30, 2016

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 statementsreferred to in the first paragraph above present fairly in all material respects, the financial positionof the Liberia Road Asset Management Project (LIBRAMP) as of June 30, 2016, 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 the project.

MGI-MONBO & COMPANYCERTIFIED PUBLIC ACCOUNTANTS

September 7, 2016

MGI - MONBO & COMPANY, CERTIFIED PUBLIC ACCOUNTANTS Page 5

AUDITORS' REPORT ON THE LIBERIA ROAD ASSET MANAGEMENT PROJECT(LIBRAMP) FOR THE YEAR ENDED JUNE 30, 2016

LIBERIA ROAD ASSET MANAGEMENT PROJECT(LIBRAM)

BALANCE SHEETAS AT JUNE 30,2016

JUL. 2015-JUN. JUL. 2014-JUN.NOTES 2016 2015

CURRENT ASSETS US$ US$BANK& CASH BALANCE 3 2,038,205.89 3,095,100.47TOTAL CURRENT ASSETS 2,038,205.89 3,095,100.47

ACCUMULATED FUND BALANCEFUND BALANCE AS AT JULY 1, 2015 3,095,100.47 534,975,.67FUND BALANCE AS AT JUNE 30, 2016 (1,056,894.58) 2,560,124.80TOTAL ACCUMULATED FUND BALANCE 2,038,205.89 3,095,100.47

PROGRAM DIRECTOR, HU UNIT MANAGER, PFMUMINISTRY OF PUBLIC WORKS MINISTRY OF FINANCE &

DEVELOPMENT PLANNING

NOTES ON PAGES 9-10 FORM AN INTEGRAL PART OF THE FINANCIAL STATEMENTS

MGI - MONBO & COMPANY, CERTIFIED PUBLIC ACCOUNTANTS Page 6

AUDITORS' REPORT ON THE LIBERIA ROAD ASSET MANAGEMENT PROJECT(LIBRAMP) FOR THE YEAR ENDED JUNE 30, 2016

LIBERIA ROAD ASSET MANAGEMENT PROJECT (LIBRAM)

STATEMENT OF FUND RECEIPTS AND DISBURSEMENTSFOR THE PERIOD JULY 1,2015-JUNE 30,2016

JUL.2015- JUL.2014-NOTES JUN.2016 JUN.2015

FUND RECEIPTS US$ US$IDAGRANT 4 47,988,200.49 36,506,489.69TOTAL FUNDS 47,988,200.49 36,506,489.69

DISBURSEMENTSCOMPONENT 1-CIVIL WORKS 5 45,705,183.03 32,776,071.16COMPONENT 2-CONSULTANCY SERVICES 6 3,339,912.04 1,170,293.73TOTAL DISBURSEMENT 49,045,095.07 33,946,364.89

EXCESS OF DISBURSEMENTS OVER RECEIPTS (1,056,894.58) 2,560,124.80BEGINNING BALANCE AS AT JULY 1, 2015 3,095,100.47 534,975.67

ACCUMULATED FUND BALANCE AS AT JUNE 30,2016 2,038,205.89 3,095,100.47

NOTES ON PAGES 9-10 FORM AN INTEGRAL PART OF THE FINANCIAL STATEMENTS

MGI - MONBO & COMPANY, CERTIFIED PUBLIC ACCOUNTANTS Page 7

AUDITORS' REPORT ON THE LIBERIA ROAD ASSET MANAGEMENT PROJECT(LIBRAMP) FOR THE YEAR ENDED JUNE 30, 2016

LIBERIA ROAD ASSET MANAGEMENT PROJECT(LIBRAM)STATEMENT OF CASH FLOWS

FOR THE PERIOD JULY 1, 2015-JUNE 30,2016

JUL. 2015-JUN. JUL. 2014-JUN.NOTE 2016 2015

OPERATING ACTIVITIES US$ US$GRANT RECEIVED 4 47,988,200.49 36,506,489.69TOTAL OPERATING ACTIVITIES 47,988,200.49 36,506,489.69

INVESTING ACTIVITIESCOMPONENT 1-ClVIL WORKS 5 (45,705,183.03) (32,776,071.16)COMPONENT 2-CONSULTANCY SERVICES 6 (3,339,912.04) (1,170,293.73)TOTAL INVESTING ACTIVITIES (49,045,095.07) (33,946,364.89)

NET (DECREASE) INCREASE IN CASH BALANCE (1,056,894.58) 2,560,124.80BALANCE AS AT BEGINNING JULY 1, 2015 3,095,100.47 534,975.67

BALANCE AS AT JUNE 30,2016 2,038,205.89 3,095,100.47

NOTES ON PAGES 9-10 FORM AN INTEGRAL PART OF THE FINANCIAL STATEMENTS

MGI - MONBO & COMPANY, CERTIFIED PUBLIC ACCOUNTANTS Page 8

AUDITORS' REPORT ON THE LIBERIA ROAD ASSET MANAGEMENT PROJECT(LIBRAMP) FOR THE YEAR ENDED JUNE 30, 2016

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

corridor from Monrovia to Guinea border and to maintain the road in good condition over 10-year

period implemented by Liberia road asset management project (the "project").

The Government of Liberia has designated the Ministry of public works (MPW) to implement the

Project through a Project Implementation Unit (PlU), while financial management of the Project has

been 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 these

financial statements:

a) Basis of accountingThe financial statements have been prepared on the historical cost convention and no

procedures have been adopted to reflect either price changes or changes in the general levelof inflation. The financial statements were prepared under Cash Basis International Public

Sector 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 propertyand equipment. 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 exchangeruling at 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.

MGI - MONBO & COMPANY, CERTIFIED PUBLIC ACCOUNTANTS Page 9

AUDITORS' REPORT ON THE LIBERIA ROAD ASSET MIANAGEMENT PROJECT(LIBRAMP) FOR THE YEAR ENDED JUNE 30, 2016

JUL.2015-JUN. JUL.2014-JUN.NOTE-3 2016 2015

CASH & BANK BALANCE US$ US$CASH IN BANK 2,038,205.89 3,095,100 47

TOTAL CASH & BANK BALANCE 2,038,205.89 3,095,100.47

JUL.2015-JUN. JUL.2014-JUN.NOTE-4 2016 2015

GRANT US$ US$IDA CREDIT: DA RECEIPT IDA 49500 - 4,488,350.62IDA CREDIT: DA RECEIPT TF 51670 3,834,691.89IDA CREDIT DIRECT PAYMENT: TF 49500 9,178,219.41 9,605,441.89IDA CREDIT DIRECT PAYMENT: TF 51670 13,559,443.66IDA CREDIT DIRECT PAYMENT: TF 99588 21,415,845.53 22,412,69718TOTAL GRANT 47,988,200.49 36,506,489.69

JUL.2015-JUN. JUL. 2014-JUN.NOTE-5 2016 2015COMPONENT 1-CIVIL WORKS US$ US$LOT 1: MONROVIA TO GBARNGA-WORKS 25,536,183.44 21,834,072.62LOT 2: GBARNGA-GANTA GUINEA BORDER 20,168,999 59 10,941,998.54TOTAL COMPONENT 1-CIVIL WORKS 45,705,183.03 32,776,071.16

JUL. 2015-JUN. JUL. 2014-JUN.NOTE-6 2016 2015COMPONENT 2-CONSULTANCY SERVICES US$ US$LOT 1: MONITORING SUPERVISION CONSULTANCY 808,237.88 394,98S.191OT 2: MONITORING SUPERVISION CONSULTANCY 1,352,153.81 332,208.07SUPERVISION CONSULTANCY FOR ELWA INTERACTION 134,325.00INSTITUTIONAL CAPACITY BUILDING 38,420.00 6,000.00TEAM LEADER/CONTRACT ENGINEER 1,150.00PROCUREMENT SPECIALIST 16,000.00TST 268,312.15 92,500.00T SG 204,034.30

OPERATING EXPENSES-PFMU & IIU 517,278.90 344,600.47TOTAL COMPONENT 2-CONSULTANCY SERVICES 3,339,912.04 1,170,293.73

NOT E-7There were no fixed assets acquired during the period.

MGI - MONBO & COMPANY, CERTIFIED PUBLIC ACCOUNTANTS Page 10

AUDITORS' REPORT ON THE LIBERIA ROAD ASSET MANAGEMENT PROJECT(LIBRAMP) FOR THE YEAR ENDED JUNE 30, 2016

DESIGNATED ACCOUNT RECONCILIATION STATEMENTFOR THE YEAR ENDED 30 JUNE 2016

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, 2016US$

DESIGNATED ACCOUNT BALANCE AT JULY 1, 2015 3,095,100.47ADVANCES/REPLENISHMENT TRANSFERS FROM IDA:LIBRAMP/MOF/014 3,834,691.89

TOTAL 6,929,792.36OTHER RECEIPTS (SALE OF BID DOCUMENTS)LESS DISBURSEMENTS (4,891,586.47)

BALANCE AS AT JUNE 30, 2016 2,038,205.89

MGI - MONBO & COMPANY, CERTIFIED PUBLIC ACCOUNTANTS Page 11

BM MGI MONBO & COMPANYCERTIFIED PUBLIC ACCOUNTANTS

Meinber Firr ofMIDSNELL CROUP 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 Asset

Management Project (LIBRAMP) financed by the International Development Association Credit as

stated in this report for the period ended June 30, 2016.

Management's ResponsibilityThe Designated Account Statement preparation and the fair presentation of this Statement is the

responsibility of the Project Financial Management Unit (PFMIJ) 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 Account

Siatement that is free from all material misstatement, whether due to fraud or error, selecting and

applying appropriate accounting policies: and making accounting estimates that are reasonable in

the circumstances..

Auditor's ResponsibilityOur responsibility is to express an opinion on the Designated Account Statenent based on ouraudit. We conducted our audit in accordance with International Standards on Auditing promulgatedby the International Federation of Accountants. These Standards require that we comply withe hical requirements and plan and perform the audit to ohtain reasonable assurance whether the

Proect financial statements are free of material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the Designated Account Statement. The procedures selected depend on the auditorsjudgement, including the assessment of the risks of material misstatement of the DesignatedAccount Statement, whether due to fraud or error. In making those risk assessments, the auditorconsiders internal control relevant to the entity's preparation and fair presentation of theDesignated Account Statement in order to design audit procedures that are appropriate in thec rcumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity'sinternal control. An audit also include evaluating the appropriateness of accounting policies usedand the reasonableness of accounting estimates made by management as well as evaluating theoverall presentation of the Designated Account Statement.

King's Building 2ud P,r P 0. Box 3196 fCe: +231 6512549Bro)ad S Gurley Strees Mnrovia Liberia E-mail: monboco@yaho comMnitro.a. Liberia

AUDITORS' REPORT ON THE LIBERIA ROAD ASSET MANAGEMENT PROJECT(LIBRAMP) FOR THE YEAR ENDED JUNE 30, 2016

In our opinion, the receipts have been properly accounted for and disbursements were made forthe purpose of the project in accordance with the provisions of the International DevelopmentAssociation Grant.

MGI-MONBO AND COMPANYCERTIFIED PUBLIC ACCOUNTANTS

September 7, 2016

MGI - MONBO & COMPANY, CERTIFIED PUBLIC ACCOUNTANTS Page 13

* MGI MONBO & COMPANYCERTIFIED PUBLIC ACCOUNTANTS

Member Firm of MIDSNLL GROUP INTERNATIONAL

INDEPENDENT AUDITORS' REPORT ON THE STATEMENT OF EXPENDITURE

FOR THE LIBERIA ROAD ASSET MANAGEMENT (LIBRAMP)

We have audited the accompanying project Statement of Expenditure of the Liberia Road Asset

Management Project financed by the International Development Association Credit as stated in this

report for the year ended june 30, 2016 and obtained all related information required.

Management's ResponsibilityThe Statement of Expenditure preparation and the fair presentation of this Statement is the

res poinsibility of the Project Financial Management UJnit (PFMU) at the Ministry of Finance &

Development Planning, Republic of Liberia. This responsibility includes: designing, implemen tI ngand 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 app!Ying

appropriate accounting policies: and making accounting estimates that are reasonable in the

ci rcumstances.

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 ohtain reasonable assurance whether the projctfinancial statements are free of material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the Statement of Expenditure. The procedures selected depend on the auditorsjudgement, inehiding the assessment of the risks of material misstatement of the Statement ofExpenditure, whether due to fraud or error. In making those risk assessments, the auditorconsiders internal control relevant to the entity's preparation and fair presentation of theStatement of Expenditure in order to design audit procedures that are appropriate in t hrcircumstances, but not for the purpose of expressing an opinion on the effectiveness of the iot'sinternal control An audit also include evaluating the appropriateness of accounting policies usedand the reasonableness of accounting estimates made by management as well as evaluating theoverall presentation of the Statement of Expenditure.

In our opinion, the Statement of Expenditure present fairly the view of the financial transactnithe Liberia Road Asset Management Project for the fiscal year ended June 30, 2016 is in accordancewiti the Cash Basis International Public Sector Accounting Standards (IPSAS), adopted hy theGovernment of Liberia and relevant provision of the Grant Agreement.

King s Building 2nd Floor P O. Box 3196 Cel: -23 1-6512549Broad & Gurley Streets Morovia. Liberia E-mail: monboco@yahoo.comMonrov a libria

AUDITORS' REPORT ON THE LIBERIA ROAD ASSET MANAGEMENT PROJECT(LIBRAMP) FOR THE YEAR ENDED JUNE 30, 2016

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 tinder the International Development Association Grant agreement.

MGI-MONBO AND COMPANYCERTIFIED PUBLIC ACCOUNTANTS

September 7, 2016

MGI - MONBO & COMPANY, CERTIFIED PUBLIC ACCOUNTANTS Page 15

AUDITORS' REPORT ON THE LIBERIA ROAD ASSET MANAGEMENT PROJECT(IABRAMP) FOR THE YEAR ENDED JUNE 30, 2016

LIBERIA ROAD ASSET MANAGEMENT PROJECT (LIBRAM) JULY 1, 2015-JUNE 30, 2016SCHEDULE OF EXPENDITURE COMPONENT

TOTALEXPENDITURE AMOUNT PAID

NO. COMPONENT (US_D)1 COMPONENT 1-CIVIL WORKS 45,705,183.032 COMPONENT 2-CONSULTANCY SERVICES 3,339,912.04

49,045,095.07

MGI - MONBO & COMPANY, CERTIFIED PUBLIC ACCOUNTANTS Page 16

M MGI MONBO & COMPANYCERTIFIED PUBLIC ACCOUNTANTS

I bi2her Fiir of MGDSN GROUP INTERNATIONAL

Mr. Emmanuel BakerProgram DirectorLI3RA MP Liheria 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 aind

recommendations foýr improvement. In the audit of the Liberia Road Asset Management

(LIBRAMP), significant matters that could have warrant a management letter did not come to or

att on as suoch we did no issue a management.

MGI-MONBO AND COMPANYCERTIFIED PUBLIC ACCOUNTANTS

September 7, 2016

King. 1s Building 2nd Flor P 0. Bo 319 Cel: +23 1-65 12549Broad & GSuriky Streets nerni vr bern E-mnail: mionboco@yahoo.comMownrna, Liberia