ACF Audit Report Reviewed With ACF Response

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UNITED NATIONS DEVELOPMENT PROGRAMMEOFFICE FOR COORDINATION OF HUMANITARIAN

AFFAIRS

AUDIT REPORT ON EMERGENCY RESPONSE TO AND MITIGATION OF

CHOLERA OUTBREAK IN MOROTO DISTRICT KARAMOJA REGION, UGANDA

FOR THE SIX MONTHS ENDED 31 ST DECEMBER 2010.

FUNDED BY;

EMERGENCY RESPONSE FUND FOR UGANDA

IMPLEMENTED BY;

ACTION AGAINST HUNGER (ACF-USA)

CONTRACT NO. ERF-DMA-0468-001

PREPARED BY; BAKER TILLY MERALI¶S Certified Public Accountants

P.0 BOX 67486, Nairobi Kenya1st Floor, New Rehema House, Rhapta Road, WestlandsTel: +254 20 444 2714

Email: [email protected]/[email protected]



Draft audit report for the Emergency Response Fund (ERF) for Uganda: Emergency response to and mitigation of Cholera outbreak in Moroto district in Karamoja region implemented by Action Against Hunger (ACF-USA)

for the six months ended 31 st December 2010.

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TABLE OF CONTENTS

Page

1. LIST OF A CR ONY MS ................................................................................... ..................2

2. PR OJE CT

BAC R OUND...............................................................................................................3

3. ST AT EMENT OF P R OG R AMM E MANAGE MENT R ES PON SI BILITI ES ................4

4. I NDEPENDEN T AUD IT OR¶S R EPO R T ........................................................... .............5

4.1 CER TI FICATI ON OF ST AT EMENT OF EXPEND IT UR E

4.2 CER TI FICATI ON OF ST AT EMENT OF A SS ETS AND EQU IPMENT

4.3 CER TI

FICA

TION OF

STA

TEMEN

TOF CA

SHPO

SITION

5. AUD IT S COPE, METH ODO L OGY AND P R OCEDU R ES .........................................7

6. FUND A CC OUN T ABILIT Y ST AT EMENT ............................................. ...................11

7. ST AT EMENT OF CASH POSITI ON...........................................................................12

8. ST AT EMENT OF A SS ETS & EQU IPMENT ...............................................................13

9. DET AIL ED ST AT EMENT OF EXPEND IT UR E......................................... ...............14

10. NO T ES T O TH E FUND A CC OUN T ABILIT Y ST AT EMENT ................................. .15

ANNEXES

ANNEX 1: DE T AIL ED FUND A CC OUN T ABILIT Y ST AT EMENT ANNEX 3: MANAGE MENT LETT ER

S UMM AR Y OF F I ND I NG S

DET AIL ED F I ND I NG S

ANNEX 3: F IEL D R EPO R T





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1.0 LIST OF ACRONYMS

a) ER F- Emergency R esponse Fund

b) ACF- Action Ag ainst H unger

c)

UN-O CH A- United N ations Office for Coordin ation of H umanitarian Aff airsd) VHT s- Village H ealth T eams

e) NGO- Non Government Org anisation

f ) UNDP- United N ations Development Progr amme

g) PH AST - Particip atory H ygiene and S anitary T r ansform ation

h) T OR - T erms of R eference

i) BC- Br anch Coordin ator

j) MOU- Memor andum of Underst anding

k ) OCH A- Office for Coordin ation of H umanitarian Aff airsl) WH O- World H ealth Org anisation

m) WASH - Wa ter and S anitation H ygiene

n) DD MC - District Dis aster Management Committee

o) NF I- Non- Food Items

p) H C- H ealth Center

q) H C 11- H ealth Center 11

r ) H C 111- H ealth Center 111

s) H C 1V- H ealth Center 1 V





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2 .0 BRIEF BACKGROUND OF THE PROJECT

T he first choler a cases were admitted in Moroto H ospit al on 21st April 2010 in the 16th

epidemiologic al week. T his w as confirmed when results from four specimens t aken to Centr alPublic H ealth La bor atory were positive for Vibrio Choler a 01 b acteri a. All the 6 sub countiesin the district reported at least a suspected c ase. T he highest number w as recorded in

Nadunget S ub County with 129 c ases. T his spre ad to other districts and by 22 nd May 2010, 37suspected c ases were reported in Kotido at Panyangar a, Nak a pelemum & Kotido sub counties.T he epidemic continued to spre ad with a total of 397 cumul ative c ases and 7 de aths recordedin Moroto district by 25 th of May 2010.

T he m ain driver of the epidemic w as the extremely poor living conditions in the communitychar acterized by strong poverty, cultur al and beh aviour al attitudes, illiter acy, overcrowdingand a sense of dependency. S pecific ally, the st ate of s anitation and hygiene is utterly poor ;

open defec ation is widely pr acticed. Because of the l ack of funds or limit ations of the loc alDistrict Wa ter Office c a pacity to m anage the situ ation, A CF¶s role w as to fill the g a p in w ater sanitation and hygiene promotion activities through coordin ation with other p artners to avoidduplic ation.

T he project over all objective w as to prevent and mitig ate the spre ad of choler a throughimproved WASH conditions access, and soci al mobiliz ation of the communities andinstitutions in Moroto district, K ar amoja R egion and the specific objectives included but notlimited to ensure th at 70% of s afe w ater supply at household/ m anyatta levels, are function alduring and after three months of the project implement ation, the percent age of household/m anyattas and institutions levels and s anitation and hygiene pr actices to incre asefrom 10% and 4% to 40% respectively, and fin ally 60% of communities/m anyattas loc alleaders ¶ ca pacity to be built on the effective m anagement in the prevention of choler a andrelated dise ase.

T he key project outputs are hereunder ; a) At le ast 15,000 people h ad improved use and m anagement of Wa ter S anitation and

H ygiene ( WASH ) services at vill age/m anyatta and institutions. b) At le ast 12,000 people h ad improved access to WASH infr astructure in

vill ages/m anyattas, schools and he alth centersc) Ca pacity of at least 150 key and influenti al people from the loc al community reinforced in

prevention of choler a and w ater rel ated dise ases.





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3 .0 STATEMENT OF PROJECT MANAGEMENT¶S RESPONSIBILITIES

T he United N ations Office for Co-ordin ation of H umanitarian Aff airs (UN-O CH A) regul ations require m anagers of the projects they fund to prep are Fund Account a bilityS tatements, which give a true and f air view of the st ate of aff airs of the project. It is thus theresponsibility of the m anagement of Action Ag ainst H unger (A CF), the implementing agencyof the Emergency R esponse Fund (E R F) for Ug anda Project No. E R F-D MA-0468-001, to

prep are Fund Account a bility S tatement. Action Ag ainst H unger m anagement is also requiredto ensure th at the project keeps proper accounting records, which disclose with re asona bleaccur acy the fin ancial position of the project at any given time. T he m anagement is alsoresponsible for s afegu arding the assets acquired using the donor funds until the project iscompleted.

T he m anagement is responsible for the prep ar ation and f air present ation of these Fin ancialS tatements in accord ance with the Emergency R esponse Fund (E R F) for Ug anda ProjectManagement Guidelines and the Project Agreement. T his responsibility includes designing,implementing and m aintaining intern al controls relev ant to the prep ar ation and f air

present ation of Fin ancial S tatements, th at are free from m aterial misst atement, whether due tofr aud or error, selecting and a pplying a ppropri ate accounting policies, and m aking accountingestim ates th at are re asona ble in the circumst ances.

T he m anagement of Action Ag ainst H unger accepts responsibility for the FundAccount a bility S tatement, which h as been prep ared using a ppropri ate accounting policiessupported by re asona ble and prudent judgments and estim ates. T he m anagement is of theopinion th at the Fund Account a bility S tatement gives true and f air view of the st ate of thefinancial aff airs of the Project and of its oper ating results. T he m anagement further acceptsresponsibility for the m ainten ance of accounting records and adequ ate systems of intern alfinancial controls, which m ay be relied upon in the prep ar ation of the Fund Account a bilityS tatement.

Approved by the Project m anagement on «««««««««...««««.. 2011 and signed by:

......................... ..................... ....................................... ......Anto ine Esc lat ine Tom CooganCountry D irector Adm inistrat ion Coord inator





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4 .0 INDEPENDENT AUDITOR¶S REPORT ON THE FINANCIAL STATEMENTSERF /ACF FOR THE SIX MONTHS ENDED 3 1ST DECEMBER 2 010.

T he United N ationsOffice for the Coordin ation of H umanitarian Aff airs (O CH A) Plot 24 Prince Charles Drive, KololoP. O. Box 7184, K ampala, Ug anda

4 .1 Cert ificat ion o f Statement o f Expend iture We have audited the accomp anying S tatement of Expenditure of the Emergency R esponseFund project number ERF-DMA- 0468 -001 for the six months ended 31 st December 2010. T he st atement is the responsibility of the m anagement of the project. Our responsibility is toexpress an opinion on the st atement b ased on our audit.

We conducted our audit in accord ance with Intern ation al S tandards of Auditing. T hosestandards require th at we pl an and perform the audit to obt ain re asona ble assur ance a bout

whether the st atement is free of m aterial misst atement. An audit includes ex amining, on a test basis, evidence supporting the amounts and disclosures in the st atement. An audit alsoincludes assessing the accounting principles used and signific ant estim ates m ade bymanagement, as well as ev aluating the over all present ation of the st atement. We believe our audit provides a reasona ble b asis for our opinion.

Bas is o f Op inion

Without qu alifying our opinion, we wish to dr aw your attention to the f act th at the ProjectManagement h ad variations exceeding 10% on six line items of the project budget withoutseeking authoris ation from O CH A as required under Article VII (5) of the MOU (Det ails in

the Management L etter ).

In our opinion, the st atement of expenditure presents f airly, in all material respects theexpenditure of USD 100,000 incurred by the project for the six months ended 31 st December 2010 in accord ance with E R F accounting requirements.

4 .2 Cert ificat ion o f Statement o f Assets and Equ ipment

We have audited the accomp anying S tatement of Assets and Equipment of the EmergencyR esponse Fund project number ERF-DMA- 0468 -001 as at 31 st December 2010. T hestatement is the responsibility of the m anagement of the project. Our responsibility is toexpress an opinion on the st atement b ased on our audit.

We conducted our audit in accord ance with Intern ation al S tandards of Auditing. T hosestandards require th at we pl an and perform the audit to obt ain re asona ble assur ance a boutwhether the st atement is free of m aterial misst atement. An audit includes ex amining, on a test

basis, evidence supporting the amounts and disclosures in the st atement. An audit alsoincludes assessing the accounting principles used and signific ant estim ates m ade bymanagement, as well as ev aluating the over all present ation of the st atement. We believe our audit provides a reasona ble b asis for our opinion.





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In our opinion, the st atement of assets and equipment presents f airly, in all material respectsthe b alance receiv a ble of the project amounting to USD 2 0,000 as at 31 st December 2010 inaccord ance with E R F requirements.

4 .3 Cert ificat ion o f Statement o f Cash Pos it ion

We have audited the accomp anying S tatement of Cash Position of the Emergency R esponse project number ERF-DMA- 0468 -001 as at 31 st December 2010. T he st atement is theresponsibility of the m anagement of the project. Our responsibility is to express an opinionon the st atement b ased on our audit.

We conducted our audit in accord ance with Intern ation al S tandards of Auditing. T hosestandards require th at we pl an and perform the audit to obt ain re asona ble assur ance a boutwhether the st atement is free of m aterial misst atement. An audit includes ex amining, on a test

basis, evidence supporting the amounts and disclosures in the st atement. An audit alsoincludes assessing the accounting principles used and signific ant estim ates m ade by

management, as well as ev aluating the over all present ation of the st atement. We believe our audit provides a reasona ble b asis for our opinion.

Bas is o f op inion

Without qu alifying our audit opinion, we wish to st ate th at E R F project funds were depositedon an existing A CF bank account used for other A CF activities. T he b ank b alance as at 31stDecember 2010 in respect of this project w as nil ; given th at A CF spent USD 100,000 on E R Factivities which is in excess of USD 8 0,000 recieved. T he b alance for E R F is a deficit of USD2 0,000 .

In our opinion, the st atement of c ash position presents f airly, in all m aterial respects the c ashdeficit of the project amounting to USD 2 0,000 incurred by the project as at 31 st December 2010 in accord ance with E R F accounting requirements.

T his report is intended solely for the inform ation and use of O CH A/UNDP and A CFmanagement.

Madhav Bhandari

SIGNATURE: ............................................. Date o f Issuance: ........................

BAKE R TILL Y MER ALI ¶S

CER TI FIED PU BLI C ACC OUN T AN TS

5 .0 AUDIT SCOPE , METHODOLOGY AND PROCEDURESAccording to the T erms of R eference ( T OR ) for this contr act, the objectives of the audit of UN-O CH A funded projects (A CF) were to ;





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a) Ena ble the auditor express an opinion on whether the fin ancial report presented by A CF presents f airly in all material respects, the fin anci al perform ance of the A CF for the twomonths ended 31 st December 2010, and compli ance with the relev ant l aws andregul ations.

b) Document, ev aluate and obt ain sufficient underst anding of the intern al control structure of ACF, assess risks and identify report a ble conditions, including m aterial intern al controlweaknesses, their implic ation and recommend ations for remedy.

c) Perform tests to determine whether A CF complied, in all materi al respects, withagreement terms and a pplic a ble l aws and regul ations and express assur ance on those itemstested, disclosing any m aterial inst ances of non-compli ance and fr aud.

We carried out the procedures hereunder to ensure th at the audit objectives are met ; a) R eviewed the T OR and oriented the audit te am tow ards achieving the audit objectives

within the agreed time fr ame. b) Prep ared the audit str ategy document including t ailored audit progr ammes and check lists

to meet audit objectives.

c) R eviewed the b ackground inform ation of the oper ations of E R F funded projects includinga review of the E R F guidelines, Procurement & dispos al guidelines by A CF.

d) Conducted meetings with A CF m anagement.e) Verified donor funding and expenditure as specified hereunder but not limited to ;

i. Checked and / or verified the vouchers and other relev ant documents supporting both income and expenditure.

ii. Performed w alk through tests to confirm the correctness of the descriptions andsources of the documents.

iii. Evaluated the evidence i.e vouchers and receipts to determine their reli a bility andauthenticity.

iv. R equested for all disbursements listed in the fin ancial report submitted by A CF.v. R equested for direct p ayments processed by O CH A/UNDP at the request of A CF.

vi. Verified the m athem atical accur acy to ensure th at the expenditures described in thesupporting document ation, the fin ancial reports, and the certified expenditurestatement were reconciled to the expenditures, as per initi al disbursed gr ant.

vii. R eviewed cost ch arged to the Project and checked th at such costs are inaccord ance with the project ¶s pl ans and budgets, and th at they are re asona ble.

viii. Assessed whether cl aimed costs met the eligibility criteri a set out in theEmergency R esponse Fund for Ug anda Management Guidelines and the ProjectAgreement.

ix. Assessed whether there are any expenditure v ariances by pegging the a pproved budget against the actual expenditure and obt aining expl anations on a budget line basis.





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x. R econciled income from UN-O CH A comp aring A CF data with UN-O CH A.xi. R eviewed A CF¶s compli ance with the terms of the Project Agreement including

variances, m ainten ance of project records, procurements and dispos als,management of unspent funds etc.

T he audit w as guided by a risk b ased a ppro ach to meet the a bove objectives and the auditmethodolology princip ally comprised of the hereunder steps ;

5 .1 Account ing and Interna l Contro l Systema) R equested for the Agency ¶s fin ancial manual th at guided A CF in m anaging project

reciepts, expenditure including addend a thereto. b) R eviewed expenditures m ade by A CF and assessed whether they were in accord ance with

project agreement, budgets, E R F Guidelines and MOU.c) R eviewed A CF¶s accounting records and assessed their adequ acy for m aintaining accur ate

and complete records of receipts and disbursements of c ash, and for supporting the prep ar ation of the mid-term implement ation fin ancial report.

d) R eviewed the records of requests for direct p ayments to ensure th at they were signed byauthorised A CF offici als.

e) Asked and verified the accounting system used, control and security of equipment anddata.

f ) Asked for the gener al administr ation controls over tr avel activities, vehicles, office premises, office communic ations and records m ainten ance.

g) Asked & verified the record of a pproved mileage r ates while delivering projectequipment.

h) Documented findings, observ ations and recommend ations

5 .2 Project Progressa) Asked for project work pl ans & fin ancial reports for review, and assesment of their

consistency with the Project agreement, Memor andum of Undest anding and E R FGuidelines.

b) R equested for project reports prep ared by A CF and assessed them for compli ance with theMOU and E R F guidelines and whether A CF met its responsibilities for monitoring asdescribed in the project agreement.

c) R eviewed whether the decisions and/or recommend ations of the project activities h ad beenfollowed through by A CF.

d) R eviewed the p ace of project progress.e) Documented findings, observ ations and recommend ations

5 .3 Donor f und ing and Expend iturea) R econciled don ations from UN-O CH A and other p artners/donors in comp arison with the

data as registered by UN-O CH A. b) T ested gr ant income on a 100% b asis, including seeking for direct confirm ations from UN-

OCH A.c) R equested for a list of sign atories who athourize and a pprove project expenditure.d) Esta blished whether expenditure alloc ation is in line with the a pproved budget and

obtained expl anations for v ariances.e) Asked whether written donor a pprov al was obt ained where actual expense w as

signific antly higher th an the budget.





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f ) Obt ained det ails of the project ¶s fin ancial tr ansactions and verified the s ame againstsupport documents to ensure th at they are adequ ately supported, st amped ¶PA ID¶,authorized and correctly alloc ated.

g) Evaluated evidence presented to us for expenditure incurred and determined reli a bility andauthenticity of such evidence, including obt aining expl anations s atisf actory to us.

h) Compared actual expenditure to a pproved budget for e ach budget line, analyzed v ariancesand sought expl anation for such v ariances.

i) Performed w alk through tests to confirm the correctness of the descriptions andauthenticity of documents.

j) R eviewed expenditure ch arged to the Project and checked th at such expenditures were inaccord ance with the work pl an and budget, and th at they were re asona ble.

k ) R eviewed tr ansfers of funds to third p arties to ensure th at the s ame were bon afidetr ansactions for the Project.

l) R eviewed A CF¶s accounting records to ensure th at they are adequ ate for the prep ar ation of the fin ancial reports.

m) Documented findings, observ ations and recommend ations

5 .4 Human Resourcesa) Asked whether there w as recruitment of personnel to test whether they met the highest

standards of qu alific ation, technic al and profession al competence necess ary for theachievement of the project objectives as stated in Article IV of the project agreement.

5 .5 Procurement & d isposa l a) Asked for procurement guidelines as a pplic a ble, deleg ations of authorities, procurement

thresholds, c all for bids and propos als, ev aluation of bids and propos als anda pprov al/sign ature of contr acts and purch ase orders.

b) R eviewed the process for procurement/contr acting activities and assessed whether it w astr ansparent and competitive.

c) T ested whether the receiving and inspection procedures conformed with the agreedspecific ations of equipment.

d) R equested for the procedures est a blished to mitig ate the risk of purch asing equipment th atdo not meet specific ations or is l ater proven to be defective.

e) T ested whether there w as management and control over the v ariation orders.f ) R eviewed the use, control and dispos al of non-expend a ble equipment and assessed

whether it w as in compli ance with terms as reflected in the MOU, and also whether theequipment procured met the identified needs and whether its use w as in line with intended

purposes.g) Documented findings, observ ations and recommend ations

5 .6 Cash & Bank a) R equested for a list of project b ank accounts, sign atories to those accounts and their

specimen sign atures. b) Asked for c ashbook(s ) and b ank st atements to reconcile them with project receipts and

expenditure. c) Asked & verified whether c ash funds held by the project were s afely gu arded.d) T ested whether project b ank reconcili ation st atements were prep ared, reviewed and

a pproved by responsible offici als for the period under review.e) Documented findings, observ ations and recommend ations





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5 .7 Stores Managementa) Asked & reviewed the stores m anagement system used.

b) Asked & verified the exist ance of stores to s afe gu ard equipment purch ased. c) Asked & verified the upd ated record of equipment stored. d) T ested & verified whether m ateri al tr ansfer notes were used while disp atching equipment

from the stores. e) Documented findings, observ ations and recommend ations

5 .8 Comp liance w ith the Project Agreement and Assets managementa) R eviewed the Project Agreement and checked compli ance with its provisions, including

requirements on v ariances in expenditure, m ainten ance of project records, procurementsand dispos als, m anagement of unspent funds, b ank accounts and st affing.

b) Asked for the assets register to verify equipment purch ased for use by the project, the procedures for receipt, stor age and dispos al.

5 .9 Ev idence o f the phys ica l existence o f the projectWe sought evidence of Project implement ation by reviewing project records and other document ation, including the following ;

a) Field visits to verify whether project activities were undert aken. b) Project visibility in areas of oper ation ± Checked activities c arried out under the project

that fostered project identity.c) R epresent ations from existing st aff who f acilit ated the projectd) Progress reports.





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ACTION AGAINST HUNGER

ERF-DMA- 0468 -001

6 .0 FUND ACCOUNTABILITY STATEMENT FOR THE SIX MONTHS ENDED

3 1ST DECEMBER 2 010.

US$ US$

Amount as per the approved budget (A) 100,000

Disbursements recieved from UN-O CH A (B) 8 0,000

Add: Bank interest recieved ( C) Nil

L ess: Bank ch arges on disbursements (D ) Nil

Tota l income (E=B+CD) 8 0,000

T otal Project expenditure cl aimed in Annex 1 (F ) 100,000

L ess: Ineligible expenditure (G ) Nil

Tota l eligib le expend iture (H=F-G) 100,000

UN-O CH A contribution (100% of eligible expenditure ) (I) 100,000

Amount due and rec ievab le f rom UN-OCHA (I=I-E) ( 2 0,000 )

Represented by:

Deficit on Project implement ation (Annex 1 ) 20,000

Add: Ineligible expenditure Nil

Amount due and payab le by UN-OCHA 20,000

S ee Annex 1 for det ailed Fund Account a bility S tatement

T he Fund Account a bility S tatement w as a pproved by A CF on.....................................................

and signed by:


T he notes on p ages 15 form an integr al part of the Fund Account a bilty S tatement.





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ERF-DMA- 0468 -001

7.0 STATEMENT OF CASH POSITION AS AT 3 1ST DECEMBER 2 010

USDUnspent alloc ations b/f -Add: Net Alloc ations issued 80,000Tota l Allocat ions 8 0,000

L ess: Expenditure 100,000Tota l Expend iture 100,000

(De ficit) /Surp lus ( 2 0,000 )

T he S tatement of Cash Position w as a pproved by A CF on................................ ....................

and signed by:

......................... ..................... ....................................... ......Anto ine Esc lat ine Tom Coogan

Country D irector Adm inistrat ion Coord inator





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ERF-DMA- 0468 -001

8 .0 STATEMENT OF ASSETS & EQUIPMENT AS AT 3 1ST DECEMBER 2 010

USDFund Balance Deficit 20,000Tota l 2 0,000

Represented byFunds R eceiv a bles from O CH A 20,000Tota l 2 0,000

T he S tatement of Assets & Equipment w as a pproved by A CF on........................................

and signed by:




Draft audit report for the Emergency Response Fund (ERF) for Uganda: Emergency response to and mitigation of Cholera outbreak in Moroto district in Karamoja region implemented by Action Against Hunger (ACF-USA) for

the six months ended 31 st December 2010.

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ERF-DMA- 0468 -001

9.0 DETAILED STATEMENT OF EXPENDITURE FOR THE SIX MONTHS ENDED3 1ST DECEMBER 2 010

Descr ipt ionBudget(USD)

Actua l (USD)

Per f ormanceVar iance

%Per f ormance

Sta ff & other personne l costsIntern ation al S taff 3,300 173 10.3,127 5%L ocal S taff 17,760 13,797 3,963 78%Progr amm st aff 13,370 12,942 428 97%Direct Progr amm support st aff 4,390 856 3,534 19%Sub-Tota l 2 1,0 6 0 13 ,970 7,090 66 %Re lief itemsWASH Activity 1 Wa ter S upply 18,500 18,944 (444 ) 102%WASH Activity 2 Environment al sanitattion 8,000 8,517 (517 ) 101%

WASH Activity 3 H ygiene Promotion 8,400 13,754 (5,354 ) 164%WASH Activity 4 Community Ca pacityBuilding 19,710 16,323 3,387 83%Other (specify )- Visibility 210 122 88 58%Sub-Tota l 5 4 ,82 0 5 7, 66 0 (2 ,84 0) 10 5 %Transport & storage costsVehicle rent al 10,800 10,632 168 98%Fuel 2,350 4,383 (2,033 ) 187%Freight 603 892 (289 ) 148%Gener ator Moroto 850 0 850 0%Sub-Tota l 14 ,6 03 15 ,907 (1, 3 04 ) 109 %Operat iona l Project CostCommunic ations 1,125 2,917 (1,792 ) 259%Office supplies 1,000 2,673 (1,673 ) 267%Others (specify ) Computer for project 850 721 129 85%Sub-Tota l 2 ,97 5 6 ,3 11 (3 ,336 ) 2 12 %Adm inistrat ive Costs (Max . 7% o f Tota l) Office rent K ampala 3,925 4,000 (75 ) 102%Office supplies K ampala 937 1,636 (699 ) 175%Gener ator fuel and m ainten ance 1,680 516 1,164 31%Sub-Tota l 6 ,5 42 6 ,1 5 2 3 90 94 %TOTAL EXPENDITURE 100,000 100,000 0 100 %

T he S tatement of Expenditure w as a pproved by A CF on «««««««««««... and signed by:






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ERF-DMA- 0468 -001

10.0 NOTES TO THE FUND ACCOUNTABILITY STATEMENT FOR THE SIXMONTHS ENDED 3 1ST DECEMBER 2 010

Account ing Po licies

T he princip al accounting policies adopted by the project ¶s management in the prep ar ation of theFinancial S tatements are set out below:

a . Bas is o f Account ing

T hese accounts are prep ared under the historic al cost convention on a modified c ash b asis.

b . Report ing Currency

T he reporting currency is United S tates Doll ars (U S D) at the exch ange r ate prev ailing during the period under audit.

c. Income

Income represents gr ants received from the UN-O CH A, and is recognized upon receipt.

e. Expend iture

Project expenditure is recognized when expenses are p aid for project activities.





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ANNEXES



Draft audit report for the Emergency Response Fund (ERF) for Uganda: Emergency response tCholera outbreak in Moroto district in Karamoja region implemented by Action Against Hunger (ACF-USA) for the

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Annex 1. DETAILED FUND ACCOUNTABILITY FOR THE SIX MONTHS ENDED 3 1ST DECEMBER

Or igina l approved budget Actua l Projectincome &

expend itureclaimed f rom

ERF


%Per f ormance

Budget lines ACFcontr ibut ion

ERFcontr ibut ion

Tota l

(USD) (USD) (USD) (USD) (USD) (%)

INCOME

Disbursements - 100,000 100,000 80,000 20,000 80%

Tota l - 100,000 100,000 8 0,000 2 0,000 8 0%

EXPENDITURE

Sta ff & other personne l costsIntern ational

Staff - 3,300 3,300 173 3,127 5%

L ocal S taff - 17,760 17,760 13,797 3,963 78%

Progr amm st aff - 13,370 13,370 12,942 428 97%

Direct Progr amm support st aff - 4,390 4,390 856 3,534 19%

Sub-Tota l - 2 1,0 6 0 2 1,0 6 0 1 3 ,970 7,090 66 %

Re lief items

WASH Activity 1 Wa ter Supply - 18,500 18,500 18,944 (444 ) 102%

WASH Activity 2 Environment al sanitattion - 8,000 8,000 8,517 (517 ) 101%

WASH Activity 3 H ygiene Promotion - 8,400 8,400 13,754 (5,354 ) 164%

WASH Activity 4 Community Ca pacity Building - 19,710 19,710 16,323 3,387 83%

Other (specify ) - Visibility - 210 210 122 88 58%

Sub-Tota l -5 4

,82

0 5 4

,82

0 5

7,66

0 (2

,84

0) 105

%Transport & storage costs

Vehicle rent al - 10,800 10,800 10,632 168 98%

Fuel - 2,350 2,350 4,383 (2,033 ) 187%

Freight - 603 603 892 (289 ) 148%




18

Or igina l approved budget Actua l Projectincome &

expend itureclaimed f rom

ERF


%Per f ormance

Budget lines ACFcontr ibut ion

ERFcontr ibut ion

Tota l

(USD) (USD) (USD) (USD) (USD) (%)

Gener ator Moroto - 850 850 0 850 0%

Sub-Tota l - 14 ,6 03 14 ,6 03 1 5 ,907 (1, 3 0 4 ) 109 %

Operat iona l Project Cost

Communic ations - 1,125 1,125 2,917 (1,792 ) 259%

Office supplies - 1,000 1,000 2,673 (1,673 ) 267%

Others (specify ) Computer for project - 850 850 721 129 85%

Sub-Tota l - 2 ,97 5 2 ,97 5 6 ,3 11 (3 ,336 ) 2 1 2 %

Adm inistrat ive Cost (Max . 7% o f Tota l)

Office rent K ampala - 3,925 3,925 4,000 (75 ) 102%

Office supplies K ampala - 937 937 1,636 (699 ) 175%

Gener ator fuel and m aintenance - 1,680 1,680 516 1,164 31%

Sub-Tota l - 6 ,5 42 6 ,5 42 6 ,1 5 2 3 90 9 4 %

TOTAL EXPENDITURE - 100,000 100,000 100,000 0 100 %

Deficit f or the per iod 2 0,000



Draft audit report for the Emergency Response Fund (ERF) for Uganda: Emergency response to and mitigation of Cholera outbreak in Moroto district in Karamoja region implemented by Action Against Hunger (ACF-USA) for the

six months ended 31 st December 2010.

19

ANNEX 2 : MANAGEMENT LETTER





20

SUMMARY OF FINDINGS

No. Heading Priority Possible Cause Reference No.

A Financial Aud it Find ings

None N/ A N/ A N/ A

B Management Control Findings

None N/ A N/ A N/ A

C Compliance Findings

1 Expenses exceeded ten per cent(10% ) on six line items of the

project budget

High Compliance ComplianceFind ing 1.





21

DETAILED FINDINGS

A: F inanc ia l Aud it F ind ingsTherewere no financial a ud it fin d ings note d du ring the perio d .

B: Management Contro l Find ingTherewere no management Control fin d ings note d du ring the perio d .

C . Comp liance F ind ingsFind ing n°: 1 Title: Expenses exceeded 10% on six line items of the project budget.H igh Comp liance

Descr ipt ion o f the find ing

Artilce VII of the project agreement st ates th at ³the agency sh all be authorised to m ake v ariations notexceeding ten per cent (10% ) on any one line item of the project budget, provided th at the tot al project

budget alloc ated by O CH A is not exceeded.´ H owever, we found out th at the underlisted expensesexceeded ten per cent on the line items of the project budget.

Budget line Budget (USD) Actua l (USD) Var iance % Per f ormanceWASH Activity 3 H ygiene Promotion 8,400 13,754 (5,354 ) 164%Communic ations 1,125 2,917 (1,792 ) 259%Office supplies 1,000 2,673 (1,673 ) 267%Office supplies K ampala 937 1,636 (699 ) 175%Fuel 2,350 4,383 (2,033 ) 187%Freight 603 892 (289 ) 148%

Imp licat ionExpenses exceeding ten percent on any one line item of the project budget is bre ach of Article VII of the

project agreement and such expenditures m ay be considered ineligible funding.Recommendat ion Management shou ld ensure that they adhere to the prov isions o f the agreement when carry ing outproject act ivit ies . Response f rom ACF

ACF i

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Response f rom UN-OHA




22

Annex 3 . FIELD REPORT

In order to verify the implement ation level of the project and activities undert aken during the period under audit, we s ampled and visited soactivities were c arried out for the six months ended 31 st December 2010. We r andomly visited some of the benefici aries and our findings a

Field report on s ites v isited wh ich were f unded by ERF and imp lemented by ACF f or the s ix months ended 3 1st December 2 010. Bene ficiary Project Bene fits Cha llenges

Na pak S ub-county Bore H ole Construction andR eha bilit ation

Av aila bility of s afe and cle an w ater in the area

Mainten ance cocommunity.

Iriiri H ealth Centre WASH T r aining H and w ashing beh aviour gr adu allyadopted

-T r ansport conassist ants to a bout the benefits- Poverty

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Documents

ACF Audit Report Reviewed With ACF Response