Ni GERIAEXILLCTIVE INDUSTRIESTRANSPARENCY INITIATIVE(NEITI)WORLD BANK REPORTING COMPLIANCE GRANT (P 162344).

AUDIITED REPORT & FINANCIAL STATEMLENTSFOR THE YEAR ENDED 31sr DECEMBER,2018

Prepared bv:

OLUFEMI ADENIJI & CO(CIARIRED ACCOUNTANTS)

OLADAYO HOUSENo 9 Summit Avenue, Oke-Agala Estate,

Vine Branch Church Area, Off Queen Elizabeth Road,Mokola Ibadan. Oyo State

Telephones: 08033283589, 08180764030.E-mail: femadeniji 2002@yahoo.com.Website: www.olufemiadenijiandco.com

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NIGERIA EXTRACTIVE INDUSTRI ES TRANSPARENCY INITII7'VEWORLD BANK REPORTING COMPLIANCE GRANT (P 162344).

TABLE OF CONTENT

Grant Information Profile 3

Significant Accounting Policies 4

Report of Auditors 5

Statement of Financial Position 6

Statement of Financial Performance 7

Statement of Cash Flow 8

Notes to the Financial Statement 9

NTGERIA EXTRACTIVE INDUSTRIES TRANSPARENCyINITIATIVE (NEIff)WOR LD BANK REPORTING COMPLIANCE GRANT(P162344).

THE GRANT MANAGEMENT TEAM

1 MrWaziri Adio Executive SecretaryNEITI/ Client's Coordinator2. Mr. Donald Tyoachimin Project Coordinator3. Mrs. Bukola Joseph Project Accountant4. Mr. Ahmed Hussaini Abubakar Procurement Expert

BANKER: Central Bank of Nigeria

PROJECT AUDITORS Olufemi Adeniji and Co

(Cliatered Accountant)

OLADAYO HOUSENo 9, Summit Avenue, OkeAgala Estate,Vine Branch Church Area, Off Queen Elizabeth Road,Mokola, Ibadan,

Oyo State, Nigeria.

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THE NIGERIA pEXTRACTI IDUSTRIES TRANSPARENCY INfTIATIVE NEIfI}XVOR LD BANK REPOT1zJNG(0.N(I- I A NCE GRANT (P 162344).

ACCOUNTING POLICIES

STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES FOR THE YEAR ENDED31ST DECEMBER. 2018The following are the summary of significant accounting policies which have been adopted by theentity in the preparation of its fnancial statements.

a) BASIS OFACCOUNTINGThe Financial Statements are prepared under the historical cost convention.

b) INCOME:Grant received from World Bank are accountable for on cash basis

c) FOREIGN CURRENCIES:Transactions in foreign currencies are translated into Naira at the rate of exchange ruling atthe transaction date. Assets and Liabilities in foreign currencies are converted to Naira atthe exchange rate ruling at the Balance Sheet date.Gain/ Losses from the conversion arecredited/debited to the Income and Expcnditure Account.

d) STATEMENT OF COMPLIANCE WITH IPSASThe Financial statements set out above are in compliance with the requirements of theInternational Public SectorAccounting Standards (IPSAS), where applicable subject to thestatement of accounting policies disclosed above.

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OLUFEMI ADENIJI & CO.LAZOO3593

(Chartered Accountants)Abu] ja O nice Lagos Office Ibadan OfficeHouse 10, Zone C, 4, Shanu Street, OLADAYO HOUSE

Near AMAC Hospital, Afariogun Way, No 9, Summit Avenue,Apo Resettlement, Oke Agala Estate, Vine Branch Church Area,Abuja. Ikeja, Lagos. Off Queen Elizabeth Road, Mokola, Ibadan.Tel: 08180764030 Tel: 08033283589 Tel: 08033283589

www.olufeniadenijiandco.con

,w E-mail: femadeniji2002@yahoo.comALL CORRESPONDENCE SHOULD BE DIRECTED TO IBADAN OFFICE

AUDITORS' REPORT TO THE BOARD OF NIGERIA EXTRACTIVEINDUSTRIES TRANSPARENCY NTIATIVE (NEIT) ON WORLD BANKREPORTING

COMPLIANCE GRANT (P162344)FOR THE YEAR ENDED 31ST DECEMBER, 2018

We have audited the attached Financial Statements of World Bank Grant for NEITI for the year ended31st December, 2018 which have been prepared on the basis ofthe Accounting Policies on page 4.

RESPECTIVE RESPONSIBILITIES OF THE MANAGEMENT AND THE AUDITORS.The Management of the Fund is responsible for the preparation of financial statements in accordance withInternational Public Sector Accounting Standards (IPSASs). It is our responsibility to form an independentopinion, based on our audit, on those statements and report our opinion to you.

BASIS OF OPINIONWe conducted our audit in accordance with International Standards on Auditing (ISAs). Those ISAs requirethat we plan and perform the audit to obtain reasonable assurance about whether the financial statements arefree from material misstatements. An audit includes examination, on a test basis, of evidence supporting theamounts and disclosures in the financial statements. It also includes an assessment of any significant estimates andjudgments made by the management on the preparation of the financial statements and ofwhether the accountingpolicies are appropriate to the entity's circumstances, consistently applied and adequately disclosed as well asevaluating the overall financial statements presentation.

We planned and performed our audit so as to obtain all the information and explanations which we considerednecessary in order to provide us with sufficient evidence to give reasonable assurance that the financialstatements are free from material misstatements, whether caused by fraud, error or other irregularities. Informing our opinion, we also evaluated overall adequacy of the presentation of the information in thefinancial statements, and assessed whether Fund's books of accounts had been properly kept.We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our auditopinion.

OPINIONIn our opinion, the financial statements give a true and fair view of the financial position of the World BankGrant to NEITI as at 31st December 201"ffid of its fimancial performance and its cash flows for the period endedin accordance with International P e Sctor Accounting Standards.

OLUFEMi ADENij FCA,FRC/2013/ICAN/000000 o 1OLUFEMI ADENIJI & CO

(CHARTEREDACCOUNTANTS) 3G/ CAN

NIGERIA 02027TH June-, 2019

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NIGERIA EXTRACTIVE INDUSTRIES TRANSPARENCY INITIATIVE (NEITI)WORLD BANK REPORTING COMPLIANCE GRANT (P162344)STATEMENT OF FINANCIAL POSITION AS AT 31ST DECEMBER 2018

NOTE 2018 2017ASSETS NAIRA (N) US ($) NAIRA (N) US ($)Bank and Cash Equivalent 3 12,267,021.14 40,130.80 13,708,627.64 44,887.45NET ASSETS 12,267,021.14 40,130.80 13,708,627.64 44,887.45

FINANCED BY:Accumulated Fund b/frwd 13,708,627.64 44,887.45 134.214,664.62 440,000.00Surplus/ (Deficit) for the year (1,441,606.50) (4,756.65) (120,506,036-98) (395,1 12.55)

12,267,021.14 40,130.80 13,708,627.64 44,887.45

The Notes on page 9 form part of this financial statement.

Mr Donald Tyoachirmin (Project Coordinator)..... ...... ........

Mrs. Bukola Joseph (Project Accountan) . ...

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NIGERIA EXTRACTIVE INDUSTRIES TRANSPARENCY INITIATIVE (NEITI)WORLD BANK REPORTING COMPLIANCE GRANT (P162344)STATEMENT OF FINANCIAL PERFORMANCE FOR TIE YEAR ENDED 31ST DECEMBER z018

NOTES 2018 2017NAIRA (N) US ($) NAIRA (N) US ($)

RECEIPT

Grant 4a 36,579,122.75 119,931.55 -

PAYMENT:

Consultancy Serviccs - Oil & Gas Audit Sa 31,255,192.50 102,454.82 120,474,339.31 395,287.17Consultancy Services - Automation 5b 6,780,217.10 22,230.22 -Bank Charges 6 3,675.00 12.04 235,725.70 774.79

TOTAL PAYMENTS 38,039,084 60 124,697,09 120,710,065.01 396,061.96

RECEIPTS LESS PAYMENTS (1,459,961.85) (4,765.54) (120,710,065.01) (396,061.96)Exchange gaim, floss) 18,355.35 8.89 204,028.03 949.41Surplus/ (Deficit) from OperatingActivities (1,441,606.50) (4,756.65) (120,506,036.98) (395,112.55)

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NIGERIA EXTRACTIVE INDUSTRIES TRANSPARENCY INITIATIVE (NEITI)WORLD RANK REPORTING COMPIAANCE GRANT (P162344)STATEMENT OF CASH FLOW FOR THE YEAR ENDED 31ST DECEMBER 2018

2018 2017NAIRA (N) US ($) NATRA (N) US ($)

Cash Flow from Operating ActivitiesRevenue from Exchange Transaction 36,579,122.75 119,931.55

OUTFLOWS:Financial, Physical and ProcessAudit: Solid mincrals 2014-2015 - 1,404,959.25 167,094.52Financial, Physical and ProcessAudit: Oil and Gas 2014 - 46,066,075.06 152,870.76Financial, Physical and ProcessAudit :Oil and Gas 2015 19,716,900.00 64,710.99 23,003,305.00 75,321.89Financial. Physical and ProcessAudit :Oil aInd Gas 2016 11,538,292,50 37,743.83Consultancy services- AutDtion 6,780,217.10 22,230.22Bank Charges 3,675.00 1204 235,725.70 774.78TOTAL OUTFLOWS 38,039,084.60 124,697.09 120,710.065.01 396,061.95

Net Cash Flow from Operations (1,459,951.85) (4,765.54) (120,710,065.01) (396,061.95)

Cash Flow From Financing Activities:Accumulated Fund 13,708,627.64 44,887.45 134,214,664.62 440,000.00Exchange gains 18,35535 8.89 204,028.03 949.40Net incrcasc/ decrease in cash flow 12,267,021.14 40,130.80 13,708,627.64 44,887,45

Represented By: 2_267_02i.T4 4_0_13_._0 13,708,62.64 _.44 _4Bank and Cash Balances 12,267,021.14 40,130.80 13,708,627.64 . 44,887.45

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