Republic of the Sudan National Audit Chamber P.0 Box: 91 Khartoum Tel: 83 778231 -778232 -771566 Date: To: Project Coordinator Subject: Audit Findings Report of Sudan Statistical Capacity Building Project (TFSCB) Grant Agreement No: TF017246 Dear Sir, I am pleased to send you the original audit report regarding the above mentioned project for the December 31", 2018, and four copies thereof You are kindly requested to forward the four copies of the report to (TFSCB) Grant No: TF017246, and retain the original for your records. It is also imperative that you carefully consider and follow-up the audit findings and observations and ensure implementation of the audit recommendations. Thank you for your anticipated co-operation. Yours sincerely Mohamed Eilafiz Nasr Mohamed Nasr (FCCA) Deputy Auditor General National Audit Chamber Sudan Statistical Capacity Building Project Project number: 152016 Grant Agreement No. TF17246 Statement of Management's Responsibilities Management accepts responsibility for the financial statements, set out on pages 2 to 3, which have been prepared using appropriate accounting policies supported by reasonable and prudent judgments and estimates. Management is of the opinion that the financial statements give a true and fair view of the state of the financial affairs of the Sudan Statistical Capacity Building Project and of its surplus /(deficit) of income over expenditure and that they are in accordance with the Project's accounting guidelines. Management further accepts responsibility for the maintenance of accounting records that may be relied upon in the preparation of the financial statements, as well as adequate systems of internal financial control. The financial statements were approved by management of Sudan Statistical Capacity Building on 27/03/2019 and were signed on its behalf by: Mona Osman EISheikh ElSir Hassan Abbas Financial Officer Project Coordinator Independent Auditor's Report To: Sudan Statistical Capacity Building Project (TFSCB) Opinion We have audited the accompanying financial statements of Sudan Statistical Capacity Building Project (TFSCB) Grant No: TF17246, which comprise the statement of fund balances as at December 31s, 2018, statement of sources and uses of funds for the year ended December 31st, 2018, statement of special account as at December 31st, 2018, and a summary of significant accounting policies and other explanatory information. In our opinion, the accompanying financial statements present fairly, in all material respects ,the financial position of the project as at December 31st, 2018, and its statement of receipts and Payments for the year then ended, in accordance with the cash receipts and disbursements basis of accounting. Basis for Opinion We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditors Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the project in accordance with the International Ethics Standards Board for Accountants' Code of Ethics for professional Accountants (LESBA), and we have fulfilled our other responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Responsibilities of Management and Those Charged with Governance for the Financial Statements Management is responsible for the preparation of these financial statements in accordance with the cash receipts and disbursements basis of accounting as modified by the recognition of receivables and payables, and for such internal control system as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Those charged with governance are responsible for overseeing the project's financial reporting process. Auditor's Responsibilities for the Audit of the Financial Statements. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatement can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. As part of an audit in accordance with ISAs we exercise professional judgment and maintain professional skepticism throughout the planning and performance of the audit we also: Tel: +249 183 775170 - +249 183 779936 Fax: +249 183775340 E-mail:info@audit.gov.sd Independent Auditor's Report To: Sudan Statistical Capacity Building Project (TFSCB) * Identify and assess the risks of material misstatements of the financial statement whether due to fraud or error, design and perform audit procedures responsive to those risks , and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatements resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery intentional omissions, misrepresentations, or the override of internal control. * Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. * Evaluate the appropriateness of accounting polices used and the reasonableness of accounting estimates and related disclosures made by management. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Mohamed Elhafiz Nasr Mohamed Nasr (FCCA) Acting Auditor General Republic of SugIan Khartoum on2I/1:dl2019 24 cAII 440 Sudan Statistical Capacity Building Project Project No -152016 Grant Agreement TF 17246 Statement of Sources and Uses of Funds by Component for the year ended 31/12/2018 Description Note SDG 2018 SDG 2017 WB Fund Received 3 5,609,288.00 449,697 Direct payment 4 1,270,073.00 80,972 Foreign currency sale incentive 1,163,741.00 575,357 Total 8,043,102.00 1,106,026 Expenses by component 1 5 9,344,630.00 595,184 Expenses by component 2 0.00 0.00 Foreign exchange gain/loss -1,617.00 0.00 Total Expenses 9,343,013.00 595,184.00 Surplus\shortage at end of year -1,299,911.00 510,842.00 Opening Balance 1,309,764.00 798,922,00 Total 9,853.00 1,309,764.00 Closing Balance 6 9,853.00 1,309,764,00 Note from (1) to (8) an integral part of these financial statements Mona Osman Elsir abbas Financial officer Project Coordinator Sudan Statistical Capacity Building Project Project No:- 152016 Grant Agreement TF 17246 Statement of Fund Balances as at 31/12/2018 SDG Description Note 2018 SDG 2017 Current Asset Cash Balances 6 9,853 1,309,764 Surplus at end of year 9,853 1,309,764 Notes from (1) tO (8) an integral part of these Financial Statements . Elsir Hassan Mona osman Abbas Project Financial Officer Coordinator Sudan Statistical Capacity Building Project Statement of Special as at December 31-2o18 Bank of Khartoum\ Head Office Account A/C No:- 008-05-1566647-0026/Euro Description Note Amount in Euro Amount in SDG rate Opening Balance as at Jan, 2018 118,839.00 877,912.00 7.387416 Add. 1/Total amount received from WB. 3 150,781.00 5,609,288,00 2/ Cah Deposit 4,359.00 155,843.00 35,75 Fund availabe during the year 2018 273,979.00 6,643,043.00 Deduct:- Transfer to local account 7 129,890.00 5,445,788.00 Other payment 8 143,977.00 4,922,162.00 Fee Coll. 11.00 628.00 54 Total Payments 273,878.00 10,368,578.00 Closing Balance on 31/12/2018 101.00 5,467.00 54.4 Gain /(losses) from foreign currency exchange transaction 0.00 4386 Closing Balance on 31/12/2018 6 101 9,853,00 Note from (1) to (8) an integral part of these Financial Statements Exchange Rate for EURO at 31/12/2018 = Mona Osman Elsir Hassan Abbas Financial officer Project coordnator Statistical Capacity Building Project (TFSCB) Note (1) Background The central Bureau of Statistics on behalf of the Republic of the Sudan is the implementation agency. The project will be implemented mainly at the federal level. The project has two main components designed to help CBS to develop and well- informed time-bound and budgeted implementation plan for Government policy priority areas: Component 1: Strengthening social indicators monitoring Component 2 Strengthening Statistics to inform the Governments economic diversification. The project will be financed with a grant of US$ 500.000 under the umbrella of the trust fund of Statistical Capacity Building (TFSCB) Starting Date: 31/8/2015 End Date :23/11/2018 Note (2) Accounting Policies: These financial Statements also account of the direct payments made by IDA on behalf of the project. A-Accounting Convention: The Financial statements are prepared under the historical cost convention. B-Basis of accounting: The financial statements have been prepared on the cash basis of accounting as modified by the recognition as receivable and payables, respectively. These financial statements are therefore not intended to be presented in conformity with international Financial Reporting Standards. C - Receipts: Receipts are recognized as income in the project financial statements in the period in which they are received. D - Expenditure: Expenditure are recognized in the project financial statements in the period in which it is paid rather than incurred. E - Comparative Figure: As the first year of implementation, there are no comparative figures. F- Foreign Currency Transactions: Transactions denominated in foreign currency are translated into Sudanese Pounds at the rates ruling on the date of the transactions, bank balances on the EURO account in the Central Bank of Sudan were re-translated at the period end using. All exchange differences are dealt with in the statement of income and expenditure in the period in which they arise. G-F-Receipts from the Grant: These are amounts from IDA. The Administrator of the TF, deposited in the Special Account, and/or directly paid to providers of good and services. The amount is received in United States Dollars and Euro and translated to Sudanese pounds at rates ruling on the dates of receipts. The receipts during the year reconciled to the amounts confirmed by IDA as disbursed to the project and comprised the following amounts. Note( 3) Fund Received Description EURO Rate Amount in SDG 201 Amount in SDG 2017 11/3/2018 31,143.50 35.75 1,113,529.61 449,697.00 1/7/2018 107,853.79 35.75 3,856,290.69 27-11-2018 11,783.68 54.27 639,467.20 Total Amount Released from WD 150,780.97 5,609,287.51 449,697.00 Note (4) Direct Payment Description Amount in USD 201E Rate Amount in SDG 201, Amount in SDG Day Payment to Emilio Farid Matuk 1,385.36 47.7375 66,181.36 17\10\2018 Kenya School of government 1,740.00 47.7375 83,063.25 29\10 Christopher Root 9,393.00 47.7375 448,398.34 29\10 Administrative Staff College of India 3,776.00 47.7375 180,256.80 13\11 TIMBERLAKE ANALYTICS MC. 6,515.00 47.7375 311,009.81 26\11 Christopher Root 3,795.00 47.7375 181,163.81 Christopher Root\20\6\2017 0.00 80,972.00 Total 26,605.36 1,270,073.37 80,972.00 Note (5) Expences Discription SDG 2018 SDG 2017 411-setup and operation of NSSCMU 570,927.97 49,714 412- Capacity Building 8,773,701.63 545,470 Total Expenses by component 9,344,629.60 595,184.00 Note (6) Cash Bank 2018 2017 Description Amount in Rate Amountin SD Amount in SDG Bank of Khartoum A/C No:- 008-051566647-0026/ Euro 100.50 54.40 5,467,20 877,912.00 Central bank of sudan A/C No.:- 01469192005154 4,385.75 431,851.50 Total 100.50 9,852.95 T1309,763.50 Note (7)Transfer to local account Descri Amount in EURO rate Amount in SDG Transfer 65,278.26 35.75484 2,334,013.74 Transfer 2,491.45 36.0156 89,731.07 Transfer 7,373.19 35.28793 260,184.61 Transfer 5,195.29 33.80127 175,607.40 Transfer 3,630.64 34.0098 123,477.34 Transfer 1,300.50 33.59666 43,692.46 Transfer 10,570.00 54.26719 573,604.20 Transfer 20,372.72 54.39989 1,108,273.73 Transfer 13,590.00 53.89589 732,445.15 Transfer 88.29 53.89589 4,758.47 Total 129,890.34 1 5,445,788,16 Note 8 other payment Description Amount in Euro Rate Amount in SDG 18/1 Cash w 7,788.20 7.387416 57,534.67 13/2 Alsir salar 1,632.61 7.387416 12,060.77 28/2 cash wit 2,112.51 7.387416 15,605.99 4/3 Alsir salar 1,631.90 35.75484 58,348.32 4/3 cash withd 4,829.11 35.75484 172,664.06 2/4 Alsir salar 1,631.89 36.0156 58,773.50 2/4 Cash withi 1,631.89 36.0156 58,773.50 24/4 cash witi 17,053.17 35.28793 601,771.07 29/4 Alsir sala 1,657.49 35.28793 58,489.39 10/6 Alsir sak 1,708.06 21.80939 37,251.75 11/6 Cash wi 3,448.78 21.80939 75,215.79 26/6 Alsir sala 1,715.79 21.80939 37,420.33 19/7 Cashwit- 8,853.18 21.80939 193,082.46 1/8 Alsir salar 1,721.37 21.80939 37,542.03 7/8 Cash withi 13,718.04 21.80939 299,182.08 29/8 Alsir sala 1,719.03 33.80127 58,105.40 12/9 Cashwith 13,580.82 33.80127 459,048.96 17/9 Cashwitl 120.94 33.80127 4,087.93 19/9 Cashwithc 12,193.37 33.80127 412,151.39 30/ 9 CashwitV 3,032.41 33.80127 102,499.31 2/10 Alsir sal 1,737.00 33.59666 58,357.40 8/10 Cashwithc 6,859.48 33.59666 230,455.62 15/10 Cashwitt 12,828.27 54.2672 696,154.29 18/10 Cashwitt 4,448.41 54.2672 241,402.76 1/11 Cashwithc 1,771.69 54.2672 96,144.66 7/11 Cashwithc 2,501.84 54.2672 135,767.85 8/11 Cashwithe 9,143.55 54.2672 496,194.86 14/11 Cashwitt 961.36 54.3999 52,297.89 21/11 Alsir sal 1,766.57 54.3999 96,101.23 28/11 Cash wit 177.92 54.3999 9,678.83 charge 11.55 54.3999 628.32 Total 143,988.20 4,922,792.39