THE WORLD BANK
TRANSFORMING IRRIGATION MANAGEMENTIN NIGERIA PROJECT
FINANCIAL STA TEMENTSFOR THE PERIOD ENDED 3 1ST DECEMBER, 2016
AUDITED BY
OFFICE OF THE AUDITOR-GENERAL FOR THE FEDERATIONPlot 273, Central Business District,
Abuja
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TRANSFORMING IRRIGATION MANAGEMENT IN NIGERIA (TRIMING) PROJECT
FINANCIAL STATEMENTS FOR THE YEAR ENDED 3 1 ST DECEMBER, 2016
Contents Page
Table of Contents 1
Project Information/Profile 2-5
Report of the Auditors 6
Statement of Financial Position 7
Statement of Financial Performance 8
Statement of Changes in Net Assets/Funds 9
Statement of Cash Flow 10
Notes to the Financial Statements 11-13
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TRANSFORMING IRRIGATION MANAGEMENT IN NIGERIA (TRIMING) PROJECT(FEDERAL MINISTRY OF 7
FINANCIAL STATEMENTS FOR THE YEAR ENDED 3 1ST DECEMBER, 2016
PROJECT BACKGROUND INFORMATION
1. Project Title Transforming Irrigation Management in Nigeria (TRIMING) ProjectProject ID: P123112Project Credit No.: 55060-NGEffective effectiveness: 16th January, 2015Expected closing date: April 3 0 th, 2022
Start Date (PPA) : 1 6 th April, 2013Sector: Irrigation and drainage (50%), Water, sanitation & Flood protection (50%)
2. Project Development Objective: Improved performance of irrigation and waterResources infrastructure and water institutions intargeted areas.
Proposed Key Performance Indicators (KPI) to measure project success in achieving the ProjectDevelopment Objectives may include the following:
" Area provided with irrigation and drainage services(Improved area & new area)
* Number of water users provided with irrigation and drainage services (Improvedarea & in new area)
* Number of operational water users associations (improved area & in new area)* Number of dams with safety hazard risks to downstream populations, private property and
infrastructure reduced to international 'as low as reasonably practicable' standards.* NIWRMC has established effective participatory water resources management and water
allocation decision-making institutions in each selected basin,
3. Project components: - The project has Four components* Water Resources Management and Dam Operation Improvement
* Support to Integrated Water Resources Management* Dam Operations and Safety Improvements
* Irrigation Development and Management* Irrigation and Drainage Investments* Improving Irrigation Management.
* Enhancing Agricultural Productivity and Values Chains* Support to Agricultural Productivity and Market Linkages.* Support to innovation and R & D
* Institutional Development & Project Management* Institutional Development and Governance* Project Management and M & E
4. Implementing Agency: Federal Ministry of Water Resources
5. Project Steering committee: The Project is supervised by Project Steering Committeeunder the Chairmanship of the Permanent Secretary Federal Ministry of Water Resources.
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MEMBERS OF NATIONAL PROJECT STEERING COMMITTEE1. The Permanent Secretary, Federal Ministry of Water Resources Chairman2. The Permanent Secretary, Federal Ministry of Power Member3. The Permanent Secretary, Federal Ministry of Finance Member4. The Permanent Secretary, Federal Ministry of Agriculture Member5. The Permanent Secretary, Federal Ministry of Environment Member6. Hon Commissioner, Ministry of Water Resources Kano state Member7. Hon Commissioner, Ministry of Water Resources Jigawa state Member8. Hon Commissioner, Ministry of Water Resources Katsina state Member9. Hon Commissioner, Ministry of Water Resources Zamfara state Member
10. Hon Commissioner, Ministry of Water Resources Sokoto state Member11, Hon Commissioner, Ministry of Water Resources Gombe state Member12. Executive Director Engineering, Sokoto Rima River Basin Dev Auth. Member13. Executive Director Engineering, Hadejia Jamaare River Basin Dev Auth. Member14. Executive Director Engineering, Upper Benue River Basin Dev Auth. Member15. The Director, Irrigation and Drainage Federal Ministry of Water Res. Member16. The National Project Coordinator, TRIMING Project Secretary
CHANGE MANAGEMENT COMMITTEEThe Change Management Committee provides advise both to the Steering Committeeas well as to the Project Management Team. Members includes:
* Representatives of Federal Ministry of Water Resources* Representatives of Federal Ministry of Agriculture and Rural Development* Representatives of Federal Ministry of Finance* Representative of Federal Minstry of Environment* Representative of Sokoto Rima River Basin Development Authority* Representative of Hadejia Jamaare River Basin Development Authority* Representative of Upper Benue River Basin Development Authority* An ad hoc or permanent basis various respected leaders in the field of Irrigation
Management, Dam safety and Agriculture.
PRINCIPAL OFFICERS OF THE PROJECT1. Engr. Peter Y. Manjuk - National Project Coordinator
2. Engr. Kenneth S. Sunmonu - Water Resources Component Manager7. Engr. Galadima M. Magaji - Irrigation Component Manager3. Abubakar M. Barka - National Project Accountant4. Abidoye Kunle Abisoye - Procurement Specialist I5. Dahiru Abdulkareem - Procurement Specialist II6. Engr. Sirika a. Ahmad - Monitoring & Evaluation Specialist7. Oyebankole Agbelusi - Environmental Safeguard Specialist8. Engr. Muhammad Sani Bala - Data & Information Specialist9. Engr. Anthea Ochedikwu Udo - Communication Specialist
10. Hallai Garba - Agric Business Specialist11. Elijah Siakpere - Social safeguard Specialist12. Mamman Modu - Project Internal Auditor
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All the Principal Officers held offices throughout the year
AUDITORS
Office of the Auditor-General for the FederationPlot 273, Central Business District,Abuja.
websisite:www.oaugf. nge-mail: [email protected]
PROJECT HEAD OFFICE
Plot 1402 Abba Kyari Street, off Adesoji AderemiStreet, ApoAbujaTel: +234(0) 92914013, +234(0)8038391469,+234(0)8052048706Email: [email protected]: www.triming.org
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TRANSFORMING IRRIGATION MANAGEMENT IN NIGERIA (TRIMING)PROJECT
fEEDERALM W OW LF
FINANCIAL STATEMENTS FOR THE YEAR ENDED 3 1ST DECEMBER, 2016
PROJECT FINANCIER
1. The World Bank
PROJECT IMPLEMENTING AGENCY
Federal Ministry of Water Resources
BANKERS
1 Eco Bank Nigeria ltdJabi branch, Abuja.
(Closed during the Year, Funds Transferred to Central Bank of Nigeria under theTSA arrangement)
2 Central Bank of NigeriaCentral Business District,Wuse Zone 3, Abuja.
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THE PRINCIPAL OFFICERS (MANAGEMENT),
REPORT OF THE INDEPENDENT AUDIT ON THE FINANCIAL STATEMENT OF THETRANSFORMING IRRIGATION MANAGEMENT IN NIGERIA PROJECT (WORLD BANKASSISTED)
We have audited the Financial Statements of the Transforming Irrigation Management in NigeriaProject (World Bank Assisted) for the year ended 31st December, 2016 as set out on pages 7 to10 which have been prepared on the basis of the Accounting Policies set out in Note 1 on page11 -13.
MANAGEMENT'S RESPONSIBILITY FOR THE FINANCIAL STATEMENTSThe Management of the Project is responsible for the preparation and fair presentation of theFinancial Statements in accordance with the International Public Sector Accounting Standards(IPSAS) accrual and also for instituting such internal controls as the Management determines itnecessary to enable the Financial Statements that are free from material misstatement.
AUDITORS' RESPONSIBILITYOur responsibility is to express an independent opinion on the Financial Statements based on ouraudit. We conducted the audit of Transforming Irrigation Management in Nigeria Project inaccordance with the International Standards of Supreme audit Institutions (ISSAls) aspromulgated by the International Organisation of Supreme Audit Institutions (INTOSAI). Thesestandards require that we comply with ethical requirement, plan and perform the audit so as toobtain reasonable assurance about whether the Financial Statements free from materialmisstatements, whether caused by fraud or other irregularity or error.
The procedures selected for obtaining assurance and evidence to support audit opinion dependson the auditors' judgment, including assessment of the risk of material misstatement of theFinancial Statements. In making those risk assessment, we considered the Internal Controlrelevant to Transforming Irrigation Management in Nigeria Project preparation and fairpresentation of the Financial Statements. We also evaluated the appropriateness of theaccounting policies used and the reasonableness of accounting estimates made by Management,as well as the overall presentation of the Financial Statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide abasis for our audit opinion.
OPINIONIn our opinion, the Financial Statements, which are in agreement with the books of account,present a true and fair view of the financial position of Transforming Irrigation Management inNigeria Project (World Bank Assisted) as at 3 1 st December, 2016, and of its performance of itsoperations, changes in net assets, its cash flows for the year ended 3 1 st December, 2016 andhave been prepared in accordance with the International Public Sector Accounting Standards(IPSAS) accrual, accounting principles generally accepted in Nigeria and in the manner requiredby the World Bank.
I. A. ADELEYEFor: Auditor-General for the Federation2 1st June, 2017
TRANSFORMING IRRIGATION MANAGEMENT IN NIGERIA (TRIMING) PROJECT
FEDERAL MINISTRY OF WATER RESOURCES
Statement of Financial Position as at 31st December 2016
Notes 2016 2015Current Assets N'000 N'000Cash and Cash E uivalents 3 11,041,147 7,056,840Receivables & Pre a ments 4 8565 0Total Current Assets (a) 11,049,712 7,056,840Non-Current Assets
Property, Plant and Equipment 5 464,891 218,781Total Non-current Assets b 464,891 218,1Total Assets (c) = (a) + (b) .51.4 603 7
NET ASSETS/FUNDS or Equity
World Bark IDA Credit No. 55060 8,999,262 7,781,500World Bank IDA Proect Preparator Fund 986,451 986,451FGN Counter art Fund 470,700 0General Peserve 6 1,058,190 -1,478,083Prior Year 0 -14247
Total Net \ssets/Equitv - 514603 7562
National Project Coordinator: Engr. Peter Y. Manjuk: ....
National Project Accountant: Abubakar Musa Barka ...... .
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TRANSFORMING IRRIGATION MANAGEMENT IN NIGERIA (TRIMING) PROJECT
FEDERAL MINISTRY OF WATER RESOURCES
Statement of Financial Performance for the year ended 31st December 2016
Notes 2016 _ 2015
N'000 N'000Revenue_ (a)_ 7 11,737 5,925
Ex enditure
Consultancy & Project Management 1,554,809 451,207Monitorin and Evaluation 40,913 56,431De reciation 5 62,811 32,463Financial Charges 21 6,707Project Pre rtoyFn(P)______0 929,867Total Expenditure (b)
___1,658,554 1,476,675Sur lus/Deficit from operating activities for the
eriod c) = a) - b -1,646,817 ]-1 4 70,7 5 0
Exchange gain activities (d) 4 ,183 ,09 -7333
Total Surplus/Deficit for the period (e) (c) (d 2,536,273 -1,478,083
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TRANSFORMING IRRIGATION MANAGEMENT IN NIGERIA (TRIMING) PROJECT
FEDERAL MINISTRY OF WATER RESOURCES
Statement of Changes in Net Assets/ Equity for the year ended 31st December, 2016
AccumulatedSurpluses/
Capital Grant (Deficits) Total
N'000 N'000 N'000
Balance at 1st januay, 2016 8,767,951 -1,478,083 7,289,868
Additional Grant/Fund 1,217,762 1,217,762
FGN Counterpart Fund 470,700 470,700
Surplus for the period fromoperating activities 2,536,273 2,536,273
Balance at 31 December 2016 10,456,413 1,058,19 11,514,603
9
TRANSFORMING IRRIGATION MANAGEMENT IN NIGERIA (TRIMING) PROJECT
FEDERAL MINISTRY OF WATER RESOURCES
Statement of Cash Flow for the year ended 31st December 2016
2016 2015
_1000 N000
CASH FLOWS FROM OPERATING ACTIVITIES
InflowsRevenue from exchange transactions A24 (Exchange RateDifferenc 4 183090 -7,333
Revenue from non-exchange transactions 0
Interest Received 6,572 _ 5,565
Proceed from Sale of Bid Documents 5 165 360
4,194,827 -1,408
Outflows
Consu 1,555,027 581,059
Monitoring and Evaluation _ 40,913 56,431
Financial Charges 21 6,707
Proiect Preparato F 9PP8) 0
1,595,961 1,574,064
Net Cash Inflow/(Outflow) from open activities (a) 2,598,867 -1,575,472
CASH FLOW FROM INVESTING ACTIVITIES
Acquisition of Assets-PPE -308,705 -121,392
Prior Y 0 -14,247
Net Cash Flow from investing activities (b) -308,705 -135,639
CASH FLOW FROM FINANCING ACTIVITIES
World Bank IDA Credit 1,217,762 81767,951
FGN Counterpart Fund 470,700 0Decrease / (Increase) in Account Receivable 5,684 0Net Cash Flow from Financing activities (c) 1,694,146 8,767,951Net Cash Flow for the year (d) (a) + (b) + (c) 3,984,308 7,056,840Cash & Cash Equivalent at 1st Jan. (e) 7056,839
-Cash& Cash Equivalent at 3st e . f d+e ___ __ 194 147 _7 6Reconciliation of Cash & Cash Equivalent at 31st Dec., 2016
Bank balances 11,041,147 7,056,840
11,041147_ ,_05q40
10
TRANSFORMING IRRIGATION MANAGEMENT IN NIGERIA (TRIMING) PROJECT
FEDERAL MINISTRY OF WATER RESOURCES
Notes to the financial statements for the year ended 31st December.2016
Note 1: Statement of Compliance
The Financial Statements have been prepared in accordance with the accrualbasis of International Public-Sector Accounting Standards (IPSAS).
Note 2: Statement of Accounting PoliciesThe following is the summary of the significant Accounting Policies adopted in thepreparation of the Project's financial Statements.
a. BASIS OF PREPARATIONThe Financial Statements have been prepared under the historical cost conventionand in accordance with the accrual basis of International Public-Sector AccountingStandards (IPSAS).
b. PRINCIPAL ACTIVITIESThe Project, which does not have profit motive, is principally engaged in the followingactivities:
Improvement of access to Irrigation and Drainage services and to strengthenInstitutional arrangements for integrated water resources management andagricultural service delivery in selected large - scale public schemes in NorthernNigeria.
c FUNDSAll contributions by the financier were only recognized when received and capitalized
as IDA Credit/Fund and Federal Government contribution as Counterpart Fund. Thisfund is subsequently increased or reduced by surplus or deficit from the statement offinancial performance.
d. RECOGNITION OF REVENUE & EXPENDITURERevenue and expenditures were recognised when they become receivable orpayable or incurred. Revenue was recognised for the period.
e. NON-CURRENT ASSETSa. Non- current assets acquired during the year (if any) were stated at costb. Depreciation: No depreciation was provided on the non-current assets.c. In the opinion of the Principal Officers, non-current assets will be transferred tothe Implementing Agency - Federal Ministry of Water Resources at the end of theProject's life, at cost.
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f REPORTING/FOREIGN CURRENCYThe financial statements were prepared using the Nigerian Naira as the reporting currency.
Transactions in foreign currency were translated at the rate of exchange ruling atthe transaction date while all foreign accounts balances were translated at the rate ofexchange at the reporting dates i. e. N197/$1 and N304/$1 in 2015 and 2016 reportingdates respectively. Exchange difference arising from the translation was recognised.
g DEFERRED TAXATIONNo provision was made for deferred taxation because the Project is exempted frompayment of income tax by law.
Note 3: Cash and Cash Equivalent2016 2015N'000 N'000
Special Account - CBN A 10,181,250 0Special Account A - Eco Bank 0 7,068,929Counterpart Fund - CBN 454,446 0Drawdown Account CBN 405,451 0Drawdown Account A 0 1,015Special Account Interest A - EcoBank A35 0 4,82
11,041,147 7174756
Note 4: Receivables & PrepaymentsSundry Debtors 8,565 0
Note 5: PPE Schedule
Furniture & Plant & OfficeMotor Vehicles fittings Machinery_ Equipments Motor cycles Total
COSTIVALUATION N N100 N1000 N'000 N1000 _ N000
Balance as at01/1/2016 157,401 18,395 4,794 70,654 0 251,244Revaluation 0 0 00 0 0
Additions 136,959 38,778 10,133 94,763 28,072 308,705Balance as at31/12/2016 294,360 57,173 14,927 165,417 28,072 559, 949
(a) 294,360 57,173 14,927 165,417 28,072 559,949
DEPRECIATIONCHARGES
Balance as at01/1/2016 20,050.00 4,382.00 1 199.00 6,616OO 0 00 32.24700Charge during thePeriod 39,350.00 4,599.00 1,199.00 17,663.00 0.00 62,811 00Balance as at31/12/2016 59,400.00 8,981.00 2,398.00 24,279.00 0,00 95,058.00
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(b) 59,400.00 8,981.00 2,398.00 24,279.00 0.00 95,058.00
CARRYING VALUEBalance As at31/12/2016 (e)= c -(d 234,960.00 48,192.00 12,529.00 141,138.00 28,072.00 464,891
2016 2015N'000 N'000
Note 6: General ReserveBalance at 1st January, 2016 -1,478,083 -1,478,083Surplus for the period from operating activities 2,536,273 0
L-058,19 -1,478,083
Note 7: RevenueInterest (Domiciliary) Account CBN Account A 6,571 5,556Interest Received from Naira Eco Bank 1 9Sales of Tender Documents 5 360
11, 737 5,925
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