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INTERNATIONAL DEVELOPMENT ASSOCIATION

GOVERNEMENT-CIVIL-SOCIETY ORGANIZATIONS

PARTNERSHIP PROJECT

FINANCIAL STATEMENT FOR THE PERIOD

1 JULY 2014 To 31 DECEMBER 2015

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PUBLIC WORKS PROJECT


GOVERNEMENT-CIVIL-SOCIETY ORGANIZATIONS PARTNERSHIP PROJECT

FINANCIAL STATEMENT FOR THE PERIOD 1 JULY 2014 To 31 DECEMBER 2015

CONTENTS

Subject Page

Independent Auditor's Report 1

Statement of Sources of Funds and Uses of Funds 2

Statement of Movement of Special Account 3

Statement of Expenditure 4

Note on the Financial Statements 5-8

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HLB YEMEN Certified Public Accountants


INDEPENDENT AUDITORS' REPORT

REPORT ON THE FINANCIAL STATEMENTS

We have audited the accompanying financial statements of the Public Work Project ( GOVERNEMENT-CIVIL-SOCIETY ORGANIZATIONS PARTNERSHIP PROJECT) financed by the World Bank, grant number TFO 15953, which comprise the Statement of Sources of Funds and Expenditure for the period from 1 July 2014 to 31 December 2015, Statement of Movement of Special Account-Central Bank of Yemen- for the period 1 July 2014 to 31 December 2015, and a summary of significant accounting policies and other explanatory notes.

MANAGEMENT'S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS

The Management is responsible for the preparation and fair presentation of these financial statements in accordance with Project agreement and related Yemeni laws and regulations. This responsibility includes designing, implementing and maintaining internal control relevant to the preparation and fair presentation of financial statements that are free from 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 RESPONSIBILITY

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing and related Yemeni laws and regulations. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit

opinion.

OPINION

In our opinion, the statement of sources of funds and uses of funds present fairly, in all material respects, the funds for the period from 1 July 2014 to 31 December 2015 in accordance with project agreement.

Ali Al Haj Registered Accountant No. 205 For HLB All Al — Haj & Co Member of HLB International

16 January 2016 Sana'a, Republic of Yemen

Inspired Around the World

A Hai & Haldeman Col Member of

H t, B International hlbyemen.com

Alnoman Tower ,Al-Zubiry Street , Sanaa - Republic of Yemen Telephone: +967-1-408379 Fax: +967-1-210518 E-mal: alhajcons co0y.net.ye Web: www.hlbyemen.com

Re & Halderaiala Cc. is a melte' of MInteinational. A world.wide network of independent accounting firms and business advisers

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4 1 PUBLIC WORKS PROJECT i INTERNATIONAL DEVELOPMENT ASSOCIATION

GOVERNEMENT-CIVIL-SOCIETY ORGANIZATION S PARTNERSHIP PROJECT

Statement of Sources of Funds and Uses of Funds For The Period 1 July 2014 To 31 December 2015

e 2

SOURCES OF FUNDS 150,000

GCSOPP- the first deposit from the World Bank 150,000

TOTAL SOURCES OF FUNDS

EXPENDITURES

Consulting (3) 24,000

Operating Expenditure (4) 79,279

TOTAL USES OF FUNDS 103,279

Excess of sources of funds over expenditures until 31 December 2015 (5) 46,721

The attached notes from (1) to (5) form an integral part of these financial statements.

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PUBLIC WORKS PROJECT INTERNATIONAL DEVELOPMENT ASSOCIATION GOVERN EMENT-CIVIL-SOCIETY ORGANIZATION S PARTNERSHIP PROJECT

Statement of Movement of Special Account for the period From 1 July 2014 To 31 December 2015

4 Account Number:

01-1239_10235

Currency:

USD

Name of the bank:

Central Bank of Yemen

Address:

Sana'a, Republic of Yemen.

Project Number:

TF015953

Payment transferred according to the grant contract dated 1 July 2014 150,000

TOTAL 150,000

Deducted from the above:

Expenditure withdrawal during the period 01/07/2014 to 31/12/2015 103,279

Balance as in 31/1212015 46,721

The attached notes (1) to (5) form an integral part of these financial statements.

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PUBLIC WORKS PROJECT INTERNATIONAL DEVELOPMENT ASSOCIATION


Statement of Expenditure for the period Froth 1 Jury 2014 To 31 December 2015

Consulting

Operating Expenses

24,000

79,279

TOTAL

103,279

The attached notes (1) to (5) form an integral part of these financial statements.

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Notes to the Financial Report For The Period 1 July 2014 To 31 December 2015

Public Works Projects in brief:

The PWP was established by law no. (36) of 1996 following the ratification of the development loan agreement signed between our country and the International Development Association (World Bank) and the then Prime Minister also issued resolution no. (3) of 1996 concerning the formation of the PWP management committee and definition of its main

tasks.

The establishment of PWP came as a critical need to treat the negative impacts resulting from the economic, financial and administrative adjustment program considered as a new model to prepare projects and their controls and the

method of allocation and procedures of implementation.

PWP objectives:

The PWP is considered one of the principal components of the social safety net targeting alleviation of the side effects

resulting from the implementation of the economic, financial and administrative adjustment program adopted by the

Yemen Government since March 1995. The PWP was incorporated to achieve the following objectives:

Create the greatest number of job opportunities for the skilled and unskilled manpower Provide basic services to the most needy categories of the society

Improve the economic and environmental situations of the poor categories of the society Advance the professions of the local contracting and engineering consultancies professions

Promote the popular participation in the development process


Project description The objective of the project is to enhance Government-CSOs partnership in the implementation and monitoring of sector

development programs. The project consists of the following parts:

Part 1: Partnership and Mutual Accountability for Improved Participation and Inclusion

Providing support to, and facilitating the activities of the Government and CSOs to develop a Government-CSOs Partnership Mutual Accountability Framework (PMAF) as a joint mechanism for effective collaboration and partnership,

that would include: 1. Organizing parallel dialogue sessions between line ministries and sector mapped CSOs;

2. Identifying complementarities and overlaps between stakeholder groups to find out points of convergence and

synergy for collaboration; 3. Identifying inherent weaknesses in terms of participation and accountability in the targeted sectors;

4. Formulating draft PMAF, based on the outcome of the parallel dialogue sessions;

5. Holding a meeting of all the participants to discuss and validate the draft PMAF; and 6. Disseminating the validated PMAF and its submission to MoPIC.

Part 2: Sector Action Plans for Improved Development Results and Capacity Building Activities Providing support to line ministries and CSOs to develop result-oriented action plans in selected sectors for a

collaborative implementation and monitoring of sector development projects on a pilot basis, that would include: 1. Formulating Sector Action Plans in selected sectors be CSOs and line ministries collaboratively as a pilot

initiative, based on the synergies emerged in the parallel sector dialogue sessions;

2. Institutionalizing the PMAF action plan within ongoing Government and Donor supported program for the

sustainability of the Government-CSOs partnership; and

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3. Building the capacity of CSOs through action learning and training on the approach and concept of social accountability of implement and monitor inclusive development projects and facilitating participation of local communities and marginalized groups.

Part 3: Project Management, Monitoring and Evaluation Strengthening the Recipient's capacity for project management, monitoring and evaluation through provision of

consultant's services, including audit, training and financing of Incremental Operating Costs.

Project Components

1. The project has four components (1) Knowledge for Development Partnership 500,000 (Bank-executed), (2) Partnership and Mutual Accountability for Improved Participation and Inclusion US$ 520,000 (Recipient-executed), (3) US$- 480,000 - Sector Action Plans for improved Development Results and Capacity Building Activities

(Recipient-executed). These will provide them with the space and opportunity to exchange views on sector development issues, develop a shared vision and understanding of sector priorities, and jointly_ identify their

complementarities and overlaps. Based on the dialogue outcomes, specific results oriented sector action plans will

be developed in select sectors on a pilot basis. The dialogue will build on the findings and operational recommendations of the FY13 CSO Mapping and Capacity Assessment study that will inform both the proposed project as well as the planned Civil Society Support Project.

2. The Accounting Policies

The accounting policies followed by the Project are as follows:-

A. Preparation of the Financial Statements

The financial statements has been prepared for the period from 1'112014 to 31/ 12! 2015 which includes implementing project activities that mentioned in the above term No. (1).

B.Accounting measurement - The project based on accounting policies community which is known and applicable with rules and accounting principles that followed by similar projects and these important policies are summarized as follows:- - The financial statements are presented in USD and are prepared upon the principle of the cash basis except the accrued balances that are in other currencies which are evaluated according to the exchange rate of the supplied batch.

C.The Accounting Regulation

The financial statements have been prepared according to historical cost principle and by accounting cash basis for the expenses. D. Fixed Assets

I The fixed assets are recorded as expenditure incurred at the date of their purchase. E. Exe

Project expenditures are recorded on the date of its disbursement and on the date of receipt of the goods or contracted services.

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INTERNATIONAL DEVELOPMENT ASSOCIATION GOVERNEMENT-CIVIL-SOCIETY ORGANIZATION S PARTNERSHIP PROJECT


E. Foreign Currencies

The Project records all its transactions in US Dollars. and for the other transactions which are made in other currencies have been recorded according to the value of the currency on the date of transaction.

G. The Cash and equivalent cash

The cash and equivalent cash is represented in cash in hand, cash at banks and advances which is convertible to known amounts from cash and which is exposed to non-material risks in terms of changes in the value.

Financial risk management

Financial instruments and risk management

This note shows related information exposing the project to the types of risks through use of financial instruments and the project uses include its normal activity some initial financial instruments such as cash and equivalent cash and as a result, it is exposed to risks referred a below.

Foreign currency risk

The project is exposed to the foreign currency risk resulting the transactions that make in other currencies than U.S dollar and through use the financial instruments derivatives, the project could reduce its exposure from fluctuations in exchange rates of foreign currencies and the project must be careful to keep the net risk exposure of foreign currency always at a reasonable level by dealing with currencies not fluctuate substantially adverse dollar.

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Consulting services

Auditing fees

22,200

1,800

24,000

Permanent employees salary 79,279

79,279 79,279

3-CONSULTING SERVICES

4-OPERATING EXPENSES 100% insisatsV=:;1-A1,174-


INTERNATIONAL DEVELOPMENT ASSOCIATION GOVERNEMENT-CIVIL-SOCIETY ORGANIZATION S PARTNERSHIP PROJECT

Notes to the Financial Report (Continued) For The Period 1 July 2014 To 31 December 2015

5-EXCESS

Excess on cash is as follows:

Cash on bank

46,721

TOTAL EXCESS

46,721

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Documents

Certified Public Accountants - World Bankdocuments.worldbank.org/curated/pt/295831468320725124/...HLB YEMEN Certified Public Accountants PUBLIC WORKS PROJECT INDEPENDENT AUDITORS