I I I WEST AFRICA AGRICULTURAL PRODUCTIVITY PROGRAMME (WAAPP) IDA CREDIT NUMBER 51360 - GH I MINISTRY OF FOOD AND AGRICULTURE WEST AFRICA AGRICULTURAL PRODUCTIVITY PROGRAMME I (WAAPP2A) I I I I IDA CREDIT NUMBER 51360 - GH I FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2017 I I I I I I I I I I I WEST AFRICA AGRICULTURALPRODUCTIVITY PROGRAMME (WAAPP) IDA CREDIT NUMBER 51360 - GH I I Contents GENERAL INFORMATION ......................................................................................................................................... 3 I LIST OF ABBREVIATIONS AND ACRONYMS ..................................................................................................... 4 PROJECT REPORT ........................................................................................................................................................ 5 I BALANCE SHEET FOR THE YEAR ENDED DECEMBER 31,2017 .............................................................. 6 STATEMENT OF INCOME AND EXPENDITURE ACCOUNT ......................................................................... 7 I CASHFLOW STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2017 ............................................. 8 SUMMARY OF ACTIVITIES IN THE IDA DESIGNATED ACCOUNT ............................................................ 9 SUMMARY OF EXPENDITURE BY CATEGORY AND COMPONENT ....................................................... 10 I NOTES TO THE FINANCIAL STATEMENTS .................................................................................................... 11 I I I I I I I I I I I 2017 ANNUAL ACCOUNT Page 2 I I WEST AFRICA AGRICULTURALPRODUCTIVITY PROGRAMME (WAAPP) IDA CREDIT NUMBER 51360 - GH I GENERAL INFORMATION I I PROJECT OFFICIALS I A. Steering Committee Hon Deputy Minister (Crops) of Agriculture -MOFA I Ing. J.K Boamah Mrs. Azara Ali - Mamshie Mrs. Diana Amoako - Kissiwa - Chief Director, MOF A -NPC/MOFA - Financial Controller, MOF A I Prof Ben A. Osei Dr. Stephen K Nutsugah Dr. Stella A. Ennin - Vice- Dean, School of Agric. Uni. Of Cape Coast - Director, CSIR - SARI - Director, CSIR - CRI [ Mr. Seth Osei Akoto Mr. Ebenezer Aboagye - Director,DCS/MOFA -Ag Director, PPRSD/MOF A Mr. Christian B Marfo - MD, Precision Farms and Oil ( Farmers Rep) I Ms. Angela Dannson Dr. Victor K. Agyemang Dr. Kwesi Ampofo - Director, Projects Unit, MOF A - Director General CSIR - Executive Director , AGRA I Dr. KAmezah Mrs. Sauda Ahmed Dr. Sam Adu- Kumi - Director, DAES/MOFA - Ag. Head, World Bank Unit/MOFEP - Ag. Director, CCMC/EPA I B. Project Officers I 1. National Project Coordinator - Mrs. Azara Ali Mamshie 2. Financial Controller I -MOFA -CSIR - Mrs. Diana Amoako - Kissiwa - Mr. Emmanuel Ofosu Brako 3. Project Accountant I -MOFA -CSIR - Mr. David Ofosu - Mr. Timothy Archer 4. Technical Specialist - Dr. Anno Nyarko I 5. Research Coordinator of WAAPP -CSIR - Dr. (Mrs.) Emma M Entsua -Mensah I Project Bankers IDA Special Account - Agricultural Development Bank, Cedi House Accra I Local Currency Account - Bank of Ghana Auditors - Ghana Audit Service I 2017 ANNUAL ACCOUNT Page 3 I I WEST AFRICA AGRICULTURALPRODUCTIVITY PROGRAMME (WAAPP) IDA CREDIT NUMBER 51360 - GH I LIST OF ABBREVIATIONS AND ACRONYMS I AEA - Agricultural Extension Agent Ag SSIP - Agricultural Service Subsector Investment Programme I AKIS AWPB - Agricultural Knowledge Information System - Annual Work Plan and Budget CARGS - Competitive Agricultural Research Grants I COSMAC CRI - Centre of Specialization Management Committee - Crops Research Institute CSIR - Council for Scientific and Industrial Research I DADUs DAES - District Agricultural Development Units - District Agricultural Extension Services DCS - Directorate of Crop Services I DUS DMISO - Distinctions, Uniformity, Stability - District Management Information System Officer EPA - Environmental Protection Agency I FASDEP GPRS - Food and Agricultural Sector Development Policy - Ghana Poverty Reduction Strategy MDGs - Millennium Development Goals I M&E MEO - Monitoring and Evaluation - Monitoring and Evaluation Officer MOFA - Ministry of Food and Agriculture I MOFEP NARS - Ministry of Finance and Economic Planning - National Centre of Specialization NPC - National Project Steering Committee I NPSC NVRC - National Project Steering Committee - National Varietal Release Committee PD - Project Division I PPMED PPRSD - Policy Planning Monitoring and Evaluation Directorate - Plant Protection and Regulatory Service Directorate RADUs - Regional Agricultural Directorates Units I R&D RELCs - Research and Development - Research Extension Linkages Committees SRID - Statistics Research and Information Directorate I WAAPP WECARD/CORAF - West Africa Agricultural Productivity Programme - West and Central African Council for Agricultural Development vus - Value for Cultivation or Us I I I I 2017 ANNUAL ACCOUNT Page 4 AUDIT SERVICE / In case of reply the / number and date of the letter should be quoted M96 My Ref. No: ................................... . Good Governance Your Ref. No~ ................................ . and Accountability P. 0. Box .................ACCRA...................... . Tel: 233 (0) 302 664920/28/29 Fax: 233 (0) 302 6751495 Website: www.ghaudit.org 12th JUNE 4A .......................................................... .'Zf.r..... ....... . West Africa Agricultural Productivity Programme (WAAPP 2A) Ministry of food and Agriculture IDA Credit Number 51360-GH Auditor's Report on the Financial Statement We have audited the accompanying financial statements on pages 6 to 14 of the West African Productivity Programme (WAAPP 2A), financed under IDA Credit Number 51360-GH for the year ended December 31, 2017. The statements comprise the statement of financial position as at 31st December 2017, the statement of sources and uses of funds, statement of expenditures (SOEs) and statement of cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information. Management's responsibility for the financial statements 2. Ministry of Food and Agriculture, which is the implementing agency for W AAPP is responsible for the preparation and fair presentation of these financial statements in accordance with International Financial Reporting Standards, and for such internal control as Management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's responsibility 3. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards of Supreme Auditing Institutions (ISSA). 4. Those standards require that we comply with ethical requirements, and plan and perform the audit to obtain reasonable assurance that the financial statements are free from material misstatement. 5. 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 the 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. 6. We believe that the audit evidence that we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion 7. In my opinion, the financial statements present fairly, in all material respects, the financial position of WAAP as at 31st December 2017 and in accordance with International Financial Reporting Standards and the Project Agreement Guidelines SAMUEL AMOFA ASSISTANT AUDITOR-GENERAL FOR: AUDITOR GENERAL I I WEST AFRICA AGRICULTURALPRODUCTIVITY PROGRAMME (WAAPP) IDA CREDIT NUMBER 51360 - GH I PROJECT REPORT I The Ministry of Food and Agriculture is the implementing agency for the WAAPP and it I operates through a project steering committee (PSC), which has the oversight responsibility for the project. The Steering Committee of the WAAPP, acting through the project Coordinating Unit (PCU), is responsible for the preparation of the financial statements for I the project. The PCU of the WAAPP presents herewith to the stakeholders of the project their report and the audited financial statements of the WAAPP for the year ended December 31st, 2016 and reports thereon as follows: I STATEMENT OF STEERING COMMITTEE'S RESPONSIBILITIES The PSC of the WAAPP, acting through the PCU, is responsible for the preparation of the I financial statements for each financial year which gives a true and fair view of the state of affairs of the project and of the resources and expenditure and cash flows for that period. In preparing these financial statements, the PSC, through the PCU, has selected suitable I accounting policies and applied them consistently, made judgements and estimates that are responsible and prudent and followed Generally Acceptable International Accounting Standards. I The PCU is responsible for ensuring accuracy that the WAAPP keeps proper accounting records that disclose with reasonable accuracy at any time the financial position of the WAAPP. The PCU is also responsible for safeguarding the assets of the WAAPP and I taking reasonable steps for the prevention and detection of fraud and other irregularities ACCUMMULATED PROJECT FUND I Total Loan Disbursed as at the end of December, 2017 totaled USD 51,954,755.21 I NATIONAL PROJECT CO-ORD: AZARA ALI MAMSHIE PROJECT ACCOUNT ANT DA YID OFOSU ~ SIGNATURE: ~ c.-. I SIGNATURE: DATE: t;;J.-/ 2~( ?-C7·-( ( DATE: I I I I I 2017 ANNUAL ACCOUNT Pages I I WEST AFRICA AGRICULTURALPRODUCTIVITY PROGRAMME (WAAPP) IDA CREDIT NUMBER 51360 - GH I I MINISTRY OF FOOD AND AGRICULTURE I I I BALANCE SHEET FOR THE YEAR ENDED DECEMBER 31,2017 I 31/12/2017 31/12/2016 Notes I US$ US$ I I I I ASSETS EMPLOTED Non- Current Assets I Current Assets I Advances to Implementing Agencies Bank Balances 1 282,716.39 505710.59 I I 282,716.39 505,710.59 I CURRENT LIABILITIES Owings to Implementing Agencies I I Net Asset Accumulated Funds Accumulated Funds Brought forward 282,716.39 505,710.59 505,710.59 3,762,019.53 I I I Suq~lusL(Deficit) for the year -222,994.20 ~ 3,256,308.94 I Accumulated Surplus 282,716.39 505,710.59 I I NATIONAL PROJECT CO-ORD: AZARA ALI MAMSHIE PROJECT ACCOUNTANT: DAVID OFOSU I :::7;2.e-/?O<&- SIGNATURE: DATE: ~°'"' 12.~ 0V\T>.D, I o-=L € I 2017 ANNUAL ACCOUNT Page 6 I I WEST AFRICA AGRICULTURALPRODUCTIVITY PROGRAMME (WAAPP) IDA CREDIT NUMBER 51360 - GH I I STATEMENT OF INCOME AND EXPENDITURE ACCOUNT I FOR THE YEAR ENDED DECEMBER 31, 2017 I RECEIPTS Notes 31/12/2017 31/12/2016 31/12/2017 US$ US$ US$ I Disbursement from IDA Other Income 2 1,513,438.25 1,332.78 8,797,516.72 2,658.79 51,954,755.21 71,230.17 I TOTAL EXPENDITURE 1,514,771.03 8,800,175.51 52,025,985.38 I Civil Works Vehicles 202,278.98 3,513,646.70 1,414,212.56 Office Equipment 1,908.84 1,565,644.69 2,589,580.65 I Research expense Training 4 270,355.60 54,208.71 1,258,646.65 282,716.43 6,383,625.00 6,643,886.86 Consulting 52,180.92 713,721.83 2,400,714.98 I Operating cost Genetic/Planting Material 3 4 447,546.59 86,798.43 3,770,756.61 1,969,313.37 13,257,653.78 8,424,056.41 Other Equipment 824,829.11 7,663.57 4,736,070.38 I Veterinary Drugs 587,531.82 Agro- chemicals/Consumables/Other supplies 1,791,861.60 I Exchange Rate Approximation Diff Total Project Expenditure (62.97) 1,737,765.23 (183.09) 9,770,559.04 428.25 51,743,268.99 I Surplus/(Deficit) of Receipts over expenditure ACCUMULATED FUND FOR THE YEAR ENDED 31 DECEMBER 2016 - 222,994.20 505,710.59 - 970,383.53 282,716.39 I Balance as at January 2016 Balance as at December 2017 282,716.39 1,476,094.12 505,710.59 282,716.39 I I I I 2017 ANNUAL ACCOUNT Page 7 I I WEST AFRICA AGRICULTURALPRODUCTIVITY PROGRAMME (WAAPP) IDA CREDIT NUMBER 51360 - GH I I MINISTRY OF FOOD AND AG RI CULTURE IDA CREDIT NUMBER 51360-GH CASHFLOW STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2017 I Cash Generated from operation: 2017 2016 Cumm To date I Operating exoenditure (911,090.251 (7,995,154.89) (37,204,075.35) I TOTAL (911,090.25) (7,995,154.89) (37,204,075.35) I Working Capital Adjustment: Increase in receivables 62.97 183.09 (2,285,683.34) I [Decrease )/Increase in payable Cash Generated from operation (911,027.28) (7,994,971.80) (39,489,758.69) I Exchange loss Net Cash e:enerated from operation (911,027.28) (7,994,971.801 (39,489,758.69) I Investing activities: I Purchased of fixed assets (826,737.95) (1,775,587.24) (12,253,510.29) (826,737.95) (1,775,587.24) I Net Cash outflow from investine: Financing activities: (12,253,510.29) I Refund Receipt from IDA 1,513,438.25 8,797,516.72 51,954,755.20 I Interest 1,332.78 2,658.79 71,230.17 I Net Cash Inflow from Financing Activities 1,514,771.03 8,800,175.51 52.025,985.37 I Net decrease in Cash and Cash eauivalent (222,994.20) (970,383.53) 282,716.39 I Cash and Cash equivalent at Jan 1 505.710.59 1,476,094.12 Cash and Cash Equivalent at 31/12/16 282,716.39 505,710.59 282,716.39 I 2017 ANNUAL ACCOUNT Page 8 I I WEST AFRICA AGRICULTURALPRODUCTIVITY PROGRAMME (WAAPP) IDA CREDIT NUMBER 51360 - GH I I IDA CREDIT NUMBER 5160-GH I SUMMARY OF ACTIVITIES IN THE IDA DESIGNATED ACCOUNT I RECEIPTS 2017 2016 CUMMTODATE I Balance b/f 291,595.96 1,056,855.44 I IDA Replenishment Interest received 1,513,438.25 29.70 8,797,482.72 51,954,721.20 48,264.20 I TOT AL FUNDS AVAILABLE 1,805,063.91 9,854,338.16 52,002,985.40 I I EXPENDITURE I Transfer to IDA Designated Account 1,100,000.00 8,450,000.00 46,350,000.00 ' I Transfer to Implementing Agencies 989,147.29 - 1,039,100.00 3,712,024.17 Goods 418,321.78 I Training 40,633.00 40,166.20 235,285.20 I Consulting Operational Cost 6,560.68 83,428.71 427,027.58 I TOTAL 1,565,515.46 9,562,742.20 51,763,436.95 I Closing Cash Book Balance 239,548.45 291,595.96 239,548.45 I I 2017 ANNUAL ACCOUNT Page 9 I I WEST AFRICA AGRICULTURALPRODUCTIVITY PROGRAMME (WAAPP) IDA CREDIT NUMBER 51360 - GH I I I SUMMARY OF EXPENDITURE BY CATEGORY AND COMPONENT USES OF FUNDS JAN-DEC PREVIOUS CUMMULATIVE I (BY CATEGORY) 2017 TO DATE EXPENDITURE USD USD USD I Category I 3,267.469.85 3,267,469.85 Category 2 1,112,197.37 34,203,345.32 36,737,230.40 I Category 3 Category 4 625,567.86 - I 0,248,267 .32 11,738,568.74 - TOTAL I I PROJECT EXPENDITURE 1,737,765.23 47,719,082.49 51,743,268.99 I USES OF FUNDS I (BY COMPONENT) I EXPENDITURE I COMPONENT 1.1 COMPONENT 1.2 - - 1,836,312.45 320,285.36 1,836,312.45 320,285.36 COMPONENT2 198,703.96 6,431,064.85 6,918,318.15 I COMPONENT 3.1 COMPONENT 3.2 625,567.86 121,881.69 8,250,891.12 14,551,388.14 9,741,688.54 15,146,836.42 COMPONENT 3.3 279,109.01 10,511,562.93 11,072,253.70 I COMPONENT 4.1 COMPONENT 4.2 486,161.29 26,341.42 4,826,851.50 990,726.14 5,690,506.81 1,017,067.56 I TOTAL PROJECT 1,737,765.23 47,719,082.49 51,743,268.99 EXPENDITURE I I I I 2017 ANNUAL ACCOUNT Page 10 I I WEST AFRICA AGRICULTURALPRODUCTIVITY PROGRAMME (WAAPP) IDA CREDIT NUMBER 51360 - GH I I NOTES TO THE FINANCIAL STATEMENTS I I. SIGNIFICANT ACCOUNTING POLICIES The principle accounting policies adopted in the preparation of these financial statements I are set out below: A Basis of preparation of Account I The financial statements have been prepared under modified cash basis of accounting. Modified Cash basis implies that all expenditure items are expenses as they incurred. However, accruals are made at the year-end for known liabilities. Income is recognized I only when cash is received. B Foreign Currency Transactions Foreign currency translation for the income and expenditure account items are Converted I using the actual historic exchange rate at the conversion from the special to local account. Where part of the expenditures has to be from the proceeds of subsequent drawdowns from special to local account, this is done on First in First out (FIFO) basis. All local expenditures paid from the local accounts/currency are translated back to the USD at the I actual rate used for the transfer from the special to local account. Cash balances held in foreign currency are reported using the closing rate. No exchange differences was recorded in the year because the prevailing exchange rate at the date of last transfer in the Sub- I designated account remained unchanged till the close of the year. C Fixed Assets All fixed assets acquired under the IDA Credit Number 5130-GH have been written off to I the Income and Expenditure Account in the year of purchase and hence no depreciation charged. I D Project Commencement The Project effectively commenced in January 2013, although disbursements from the IDA loan started from March 2013. I G Going Concern The activities of WAAPP are still on going and hence the financial statements of the I WAAPP are prepared on going concern basis. Note I I CASH AND CASH EQUIVALENT/BANK BALANCES ACCOUNT Designated Account CLOSING BALANCE 239,548.45 I Sub-Designated Account Total Bank Balance 43,167.94 282,716.39 I Note 2 IDA LOAN DISBURSEMENT I 2017 ANNUAL ACCOUNT Page 11 I I WEST AFRICA AGRICULTURALPRODUCTIVITY PROGRAMME (WAAPP) IDA CREDIT NUMBER 51360 - GH I MOF A/WAAPP/2017/18 1,153,458.25 I MOFA/WAAPP/2017/19 MOF A/W AAPP/2017/20 159,990.00 199,990.00 I 1,513,438.25 I Note 3 OPERATING COST I ITEM ' USO UTILITY 61,303.21 I RUNNING COST 72,427.66 I MATERIALS AND CONSUMABLES 68,409.17 I OTHER ADMINISTRATION COST 2,882.94 I MAINTENANCE OF OFFICIAL VEHICLES 12,640.471 I PRINTING AND PUBLISHMENT 14,889.40 I TRAVEL AND TRANSPORT 214,508.99 I BANK CHARGES 484.74 / I I I TOTAL 447,546.581 I I I I I 2017 ANNUAL ACCOUNT Page 12 I I WEST AFRICA AGRICULTURALPRODUCTIVITY PROGRAMME (WAAPP) IDA CREDIT NUMBER 51360 - GH I Note 4 The figure USD$ 2,285,925.41 is an expenditure omitted from the cumulative project I expenditure in the income and expenditure statement but accounted for in yearly income and expenditure statement and hence needs to be adjusted as follows. The breakdown in expenditure, components and categories are as follows: I I EXPENDITURE Research Expense Genetic/Planting Material AMOUNT (USD$) 1,377,110.33 908,819.08 I Total 2,285,929.41 I EXPENDITURE Category 2 Category 3 AMOUNT (USD$) 1,421,191.71 864,737.70 I Total 2,2ss,929.41 I I EXPENDITURE Component 2 AMOUNT (USD$) 288,549.34 864,737.70 I Component 3.1 Component 3 .2 Component 3.3 473,566.59 281,581.76 Component 4.1 377,494.02 I Total 2,285,929.41 I I I I I I I 2017 ANNUAL ACCOUNT Page 13 ., I WEST AFRICA AGRICULTURALPRODUCTIVITY PROGRAMME (WAAPP) IDA CREDIT NUMBER 51360 - GH I I I Comparison of cumulative expenditure with total allocation (Budget) for the project period for the respective categories and components taking into accounts note 4. I USES OF FUNDS (BY CATEGORY) EXPENDITURE TOTAL CUMULATIVE ALLOCATION TO DATE USD USD VARIANCE USD I Category I Category 2 Category 3 2,765,000.00 36,860,000.00 16,375,000.00 3,267,469.85 36,737,226.26 11,738,572.88 -502,469.85 1,22, 772. 74 4,636,427.12 - I Category 4 TOTAL PROJECT EXPENDITURE 4,000,000.00 60,000,000.00 51,743,268.99 4,000,000.00 8,256,731.01 I ' I USES OF FUNDS (BY COMPONENT) EXPENDITURE I COMPONENT 1.1 COMPONENT 1.2 1,044,000.00 984,000.00 1,836,312.45 320,285.36 -792,312.45 663,714.64 COMPONENT2 9,933,000.00 6,918,318.15 3,014,681.85 I COMPONENT 3.1 COMPONENT3.2 COMPONENT 3.3 14,808,000.00 19,300,000.00 10,783,000.00 9,741,196.68 15,146,836.42 11,072,253.70 5,066,803.32 4,153,163.58 -289,253.58 I COMPONENT 4.1 COMPONENT 4.2 TOTAL PROJECT 2,287,000.00 861,000.00 5,690,998.67 1,017,067.56 -3,403,998.67 -156,067.56 I EXPENDITURE 60,000,000.00 51,743,268.99 8,256,731.01 I I I I I 2017 ANNUAL ACCOUNT Page 14