M bakertitty Alin I Ily N1. I Inkei Tilly IImw I/ ( ila Steve n SI c1 I'l)1IL100 Telephon i l , indd10 k-1t'III[well I ("I I", i(1 'I I Our rTf- S65 I/ank/kk Your rei: Date: 26 June 2019 The Permanent Secretary Ministry of Energy 3 & 3A Pademba Road Freetown Dear Sir Energy Sector Utility Reform Project Audit of the financial statements for year ended 31 December 2018 We wish to commend management on the effectiveness of the Internal Control and Accounting System maintained throughout the reporting period. We confirm that no reported issues were identified. Yours faithfully S Derrick Kawaley Partner A Member Firm of the Baker Titly Worldwide Network of Independent Accounting Firms Executive Chairman: Raymond M Davies, Managing Partner: Derrick L Kawaley Partners: 1siaka A Baiogun, Agnes N Sawyer Energy Sector Utility Reform Project Donor: The World Bank - International Development Association (IDA) Implementing Partners: The Ministry of Energy (MoE) and the Electricity Distribution and Supply Authority (EDSA) Financial statements for the year ended 31 December 2018 This report contains 23 pages Ref 1002/sm/bow Energy Sector Utility Reform Project Donor: The World Bank International Development Association (IDA) Implementing Partners: The Ministry of Energy and the Electricity Distribution and SupplyAuthority (EDSA) Financial statements for the year ended3l December 2018 Contents Page General information 1 Background information about the project 2 Management responsibility statement 3 Independent Auditor's report 4-6 Statement of resources and expenditure 7 Statement of income and expenditure 8 Statement of financial position 9 Statement of changes in equity 10 Statement of cash flow II Notes to the financial report 12-19 Report on the statement of expenditure submitted 20 Statement of disbursement reconciliation International Development Association (IDA) 21 Report of the Independent Auditor on the Project's PMU/MoE USD special account statement Account Number .003001014214030130 22 PMU/MoE special account statement 23 Energy Sector Utility Reform Project Donor: The World Bank International Development Association (IDA) Implementing Partners: The Ministry of Energy and the Electricity Distribution and Supply Authority (EDSA) Financial statements for the year ended31 December.2018 General information Registered Office : 1 Floor, Renlaw House 12 Pultney Street Freetown Financial Management Specialist Albert Ken Patewa Permanent Secretary Morie Momoh Bankers Sierra Leone Commercial Bank Limited Auditors Baker Tilly SL Baker Tilly House 37 Siaka Stevens Street Freetown Donor The World Bank - International Development Association (IDA) 1 Energy Sector Utility Reform Project Donor: The World Bank International Development Association (IDA) Implementing Partners: The Ministry of Energy and the Electricity Distribution and Supply Authority (EDSA) Financial statements for the year ended 31 December 2028 Background information about the project On 17 January 2014, the Republic of Sierra Leone ("Recipient") and the International Development Association ("Association") entered into a financing Agreement. The Association agreed to extend to the Recipient a credit in an amount equivalent to twenty-six million one hundred thousand Special Drawing Right (SDR 26,100,000) (variously, "Credit" and "Financing") to assist in financing the Energy Sector Utility Reform Project. The objective of the Project is to improve the operational performance of the national electricity distribution utility. The Project consists of the following parts: Part 1 Distribution Utility Capacity Enhancement and Performance Improvement To support the establishment of a fully functioning and effective national electricity distribution utility through a Performance Based Contract for Utility Operation and Management. Part 2 Improvement of Electricity Supply in Urban Arears To implement a Network Rehabilitation and Upgrade Investment Plan ("NRUIP") designed to improve the quality and reliability of the national electricity utility's power distribution network, to include: (a.) Reinforcement, rehabilitation and extension of the primary medium voltage ("MV") distribution network, including: (i) rehabilitating and operationalizing 33 Kilovolt ("Ky") substations; (ii) carrying out of repairs and upgrading of underground cables; (iii) upgrading of overhead lines; (iv) designing of new feeders; and (v) carrying out of appropriate tests. (b.) Reinforcement, rehabilitation and extension of priority secondary MV and low voltage ("LV") distribution network, including supply and installation of appropriate equipment such as 11KV switchgear; I IKV/400V transformers; conductors; service cables; poles; line hardware; LV panels and associated protection devices, auto-reclosers and load break switches. Part 3 Sector Planning Assistance, Project Implementation Support, and Monitoring and Evaluation (a) Provision of technical advisory services of the Ministry of Energy for; (i) (A) preparation and/or review of pre-feasibility and feasibility studies focusing on potential investments in power generation, including all types of primary energy sources; and (B) preparation of urgent investments under the NRUIP; and (ii) monitoring and evaluation, in particular: (A) monitoring and assessing the performance of the Contractor under Part I of the Project; and (B) carrying out the impact evaluation of the project. (b) Strengthening the capacity of the Project Management Unit through the provision of technical advisory services, goods, non-consulting services, training and operating costs. 2 Energy Sector Utility Reform Project Donor: The World Bank International Development Association (IDA) Implementing Partners: The Ministry of Energy and the Electricity Distribution and Supply Authority (EDSA) Financial statements for the year ended 32 December.2028 Management's responsibility statement Management is responsible for the preparation and presentation of the financial statements, comprising the statement of financial position at 31 December 2018, and the statements of resources and expenditure, income and expenditure, changes in equity, and cash flows for the year then ended, and the notes to the financial statements, which include a summary of significant accounting policies and other explanatory notes in accordance with the accounting policies stated in note 2 of the financial statements 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. Approval of the financial statements The financial statements were approved by management on. .J...... 2019 and signed on its behalf by: Permanent Secretary Financial Management Specialist Ministry of Energy Energy Sector Utility Reform Project 3 bakertitty Baker Tilly SL Baker filly House 37 Siaka Stevens Street P0 Bo 100 Frectown Sierra Leone Telephone +(232) 30.444-100 Independent Auditor's report to the Government of Sierra Leone Opinion We have audited the financial statements of the Energy Sector Utility Reform Project which comprise the statement of financial position as at 31 December 2018, statement of resources and expenditure, the statement of income and expenditure, the statement of changes in equity and the statement ofcash flows for the year then ended and the notes to the financial statements which include a summary of significant accounting policies and other explanatory notes as set out on pages 7 to 19. In our opinion, the financial statements give a true and fair view ofthe financial position ofthe Energy Sector Utility Reform Project as at 31 December 2018, and of its financial performance and cash flows for the year then ended in accordance with the accounting policies adopted by the project as stated in note 2 of the financial statements. In addition, in our opinion the accompanying specialldesignated account statement on pages 22 and 23 presents fairly, in all material respects, thc funds received and disbursements made from the special /designated account ofthe project for the year ended on 31 December 2018, in accordance with the accounting convention as described in the note above, 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 Auditor's 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 (IESBA Code) together with the ethical requirements that are relevant to our audit of the financial statements in Sierra Leone, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. 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 and presentation of these financial statements in accordance with the significant accounting policies stated in note 2 of the financial statements, and for such internal control as the management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. A Memoer FIrm of the Baker Tilly Worldwide Network of independent Accounting Firms Executive Chairm.an: Raymond M Davies, Managing Partner: Derrick L Kawaley Partners I hsika A a.legun, Agnes N Sawy 4 bakertilly Independent Auditor's report to the Government of Sierra Leone (continued) Auditors' responsibility for 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. Misstatements 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 scepticism throughout the audit. We also: * Identify and assess the risks of material misstatement of the financial statements, 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 misstatement 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, but not for the purpose of expressing an opinion on the effectiveness of the organisation's internal control. * Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the management. * Conclude on the appropriateness of the management' use of the going concern basis of accounting and based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the organisation's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the organisation to cease to continue as a going concern, * Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. * Obtain sufficient appropriate audit evidence regarding the financial information of the business activities within the organisation to express an opinion on the financial statements. We are responsible for the direction, supervision and performance of the organisation's audit. We remain solely responsible for our audit opinion. 5 (6 bakerttly Independent Auditor's report to the Government of Sierra Leone (continued) 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. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards. Other matter The financial statements have been prepared in accordance with the accounting policies stated in note 2 of the financial statements, for the purpose of determining the financial position of Energy Sector Utility Reform Project for use by its management and International Development Association, and the financial statements and related auditor's report may not be suitable for another purpose. Our report is intended solely for the management of Energy Sector Utility Reform Project and International Development Association and should not be distributed to or used by parties other than the management of Energy Sector Utility Reform Project and International Development Association. The Engagement Partner on the audit resulting in this independent auditors' report is Derrick L Kawaley. F I Freetown Chartered Accountants Date:? 6 й�ь Q" м а ' О� С� ,.� Cn t-- �в7 �� � у � с я И � С�-. � а�ч м ,�°�. � ц�j Ё � ь.'7 � G�i � "� � � ,.�w � � 4 а �-д рр r. 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Energy Sector Utility RefDrnq PlOjOct Donor; The World Bank International Development Association (IDA) implementing Partner: Lpjectricity Distribution SupplyAothoritY(ED.5A) Financial statements for the year en ded 32 Decem ber 2 018 Statement of income and expenditure for the year ended 31 December 2018 Year to 31 Year to 31 Year to Year to 31 December December 31 December December 2018 2017 2018 2017 Notes Le'000 Le'000 USD USD Grant income 14 30,104,349 11,151,468 4,236,703 2,926,762 Other income (net) 12 2,609,839 946,524 (8) 293 Total income 32,714,188 12,097,992 4,236,695 2,927,055 Expenditure Project support cost 6 5,222,645 600,450 643,316 82,253 Communication 7 173,265 65,608 22,139 8,928 Media, printing and copying 8 47,195 23,004 5,985 3,443 Fuel and utility costs 9 159,727 210,071 20,576 28,474 Other operating costs 10 59,284 41,574 7,699 5,695 Consulting cost 11 26,775,925 20,255,843 3,380,562 2,762,555 Bank charges 12 1,227,978 261,791 157,114 35,707 Total expenditure 33,666,019 21,458,341 4,237,391 2,927,055 Result for the year (951,831) (9,360,349) (696) - The notes on pages 12 to 19 are an integral part of the financial statements 9 Energy Sector Utility Reform Project Donor: The World Bank International Development Association (IDA) Implementing Partners: The ministry of Energy and the Electricity Distribution and Supply Authority (EDSA) Financial statements for the year ended 31 December 2018 Statement of financial position As 31 December 2018 Year to 31 Year to 31 Year to 31 Year to 31 December December December December 2018 2017 2018 2017 Notes Le'000 Le'000 USD USD Asset Bank balance 13 13,155,875 24,028,436 1,575,556 3,203,792 Total assets 13,155,8715 24,028,436 1,575,556 3,203,792 Equity Accumulated fund - 951,831 - 696 Total equity 951,831 - 696 Liabilities Deferred income 14 13,155,875 23,076,605 1,575,556 3,203,096 Total liabilities 13,155,875 23,076,605 1,575,556 3,203,096 Total equity and liabilities 13,155,875 24,028,436 1,575,556 3,203,792 T'"se financial state ents were approved by management on ........................2019 .............. .. .............. inancial Management Specialist ...... .......... Permanent Secretary The notes on pages 12 to 19 are an integral part of the financial statements 9 Energy Sector Utility Reform Project Donor: The World Bank International Development Association (IDA) Implementing Partners: The Ministry of Energy and the Electricity Distribution Supply Authority (EDSA) Financial statements for the year ended 32 December2oi9 Statement of changes in equity As 31 December 2018 Accumulated fund Le'000 USD At 1 January 2017 10,312,180 696 Result for the year (9,360,349) At 31 December 2017 951,831 696 At 1 January 2018 951,831 696 Result for the year (951,831) (696) At 31 December 2018 - The notes on pages 12 to 19 are an integral part of the financial statements 10 Energy Sector Utility Reform Project Donor: The World Bank International Development Association (IDA) Implementing Partners: The Ministry of Energy and the Electricity Distribution and Supply Authority (EDSA) Financial statements for the year ended 31 December 2018 Statement of cash flow For the year ended 31 December 2018 Year to 31 Year to 31 Year to 31 Year to 31 December December December December 2018 2017 2018 2017 Notes Le'000 Le'000 USD USD Result for the year (951,831) (9,360,349) (696) 293 Adjustment for: Net finance (gain)/cost 12 (1,381,861) (684,733) 157,122 35,414 (2,333,692) (10,045,082) 156,426 35,707 Changes in deferred income (9,920,730) 11,475,479 (1,627,540) 158,026 (12,254,422) 1,430,397 (1,471,114) 193,733 Interest received 4,163 20,040 536 2,741 Interest and charges paid (1,232,257) (287,457) (157,658) (39,217) Other income - 7,755 - 1,062 Net cash used in operating activities (13,482,516) 1,170,735 (1,628,236) 158,319 Cash flow from financing activities - Cash flow from investing activities - Net (decrease) / increase in cash and cash equivalent (13,482,516) 1,170,735 (1,628,236) 158,319 Effect of exchange rate fluctuation 2,609,955 944,395 - - At IJanuary 24,028,436 21,913,306 3,203,792 3,045,473 Cash and cash equivalents at 31 December 13 13,155,875 24,028,436 1,575,556 3,203,792 The notes on pages 12 to 19 are an integral part of the financial statements li Energy Sector Utility Reform Project Donor: The World Bank International Development Association (IDA) Implementing Partners: The Ministry of Energy and the Electricity Distribution and Supply Authority (EDSA) Financial statements for the year ended 32 December2o18 Notes to the financial statements 1. Reporting entity The Energy Sector Utility Reform Project was implemented in Sierra Leone by the Ministry of Energy and the Electricity Distribution and Supply Authority (EDSA). The registered address is IV Floor, Renlaw 12 Pultney Street Freetown Sierra Leone. 2. Summary of significant accounting policies The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied unless otherwise stated. 2.1 Basis of preparation The financial statements have been prepared in accordance with the International Public Sector Accounting Standard (IPSAS) Financial Reporting under the Cash Basis of Accounting. 2.2 Functional and presentation currency These financial statements have been presented in Leones which is the functional currency of the project and the United States Dollar (USD) the functional currency of the Donor. All financial information presented in Leones has been rounded to the nearest thousand, except when otherwise indicated. 2.3 Expenditure Expenditures are reported in the statement of expenditure on a cash basis. They are amounts paid during the reporting period in respect of expenses incurred on programme activities. 2.4 Foreign currency transactions Foreign currency transactions are accounted for at the rate of exchange prevailing on the date at which the transactions were recorded. All gains and losses arising are taken to the income and expenditure statement. The closing exchange rate for United States Dollars as at 31 December 2018 was Le8,350 which was the indicative midrate of the Sierra Leone Commercial Bank as at 31 December 2018 (2017: Le 7,499) 2.5 Deferred grant income The grant is recognised as income over the period necessary to match them with the related costs, for which they are intended to compensate, on a systematic basis. 2.6 Cash and cash equivalent This refers to the USD balance on the Special Account bank account held with the Sierra Leone Commercial Bank. 1.2 EnergySector Utility Reform Project Donor: The World Bank International Development Association (IDA) Implementing Partners: The Ministry of Energy and the Electricity Distribution and Supply Authority (EDSA) Financial statements for the year ended 31 December 208 Notes to the financial statements (continued) 3. Disbursements (International Development Association (IDA) Reference Amount number Date USD Leones (000) ESUP 001 19-Jun-15 4,000,000 18,012,920 ESUP 002 20-Nov-15 21,648 97,486 ESUP 003 03-Aug-16 3,428 20,913 ESUP 004 22-Feb-17 2,799 20,291 ESUP 005 12-Apr-17 951,524 6,946,128 ESUP 006 11-Apr-17 19,194 140,115 ESUP 007 14-Aug-17 6,008 43,860 ESUP 008 14-Aug-17 662,067 4,833,087 ESUP 009 14-Aug-17 199,234 1,454,410 ESUP 010 04-Sep-17 396,300 2,892,991 ESUP 011 22-Dec-17 325,274 2,415,156 ESUP 012 22-Dec-17 294,891 2,189,570 ESUP 013 22-Dec-17 227,790 1,691,339 ESUP 014 05-Feb-18 259,897 1,949,224 ESUP 015 29-Mar-18 562,226 4,216,696 ESUP 016 29-Mar-18 481,420 3,610,648 ESUP 017 30-May-18 239,833 1,810,742 ESUP 020 30-May-18 306,613 2,314,929 ESUP 024 21-Sep-18 72,781 596,075 ESUP 022 21-Sep-18 287,990 2,358,637 ESUP 029 21-Dec-18 398,403 3,326,668 9,719,320 60,941,885 4. Energy Sector Utility Reform Project EDSA Special account There was no disbursement from IDA into the EDSA Special account during the year. 5. Grant income Year to 31 Year to 31 Year to 31 Year to 31 December December December December 2018 2017 2018 2017 Le'000 Le'000 USD USD Remittance from IDA 20,183,619 21,458,341 2,609,163 2,927,055 20,183,619 21,458,341 2,609,163 2,927,055 3 Energy Sector Utility Reform Project Donor: The World Bank international Development Association (IDA) Implementing Partners: The Ministry of Energy and the Electricity Distribution and Supply Authority (EDSA) Financial statements for the year ended 31 December.2018 Notes to the financial statements (continued) 6. Project support cost Year to 31 Year to 31 Year to 31 Year to 31 December December December December 2018 2017 2018 2017 Le'000 Le'000 USD USD Vehicle - 584,000 - 80,000 Electricity equipment 5,134,193 16,450 632,516 2,253 International training 88,452 - 10,800 - 5,222,645 600,450 643,316 82,253 7. Communication Year to 31 Year to 31 Year to 31 December December December Year to 31 2018 2017 2018 December 2017 Le'000 Le'000 USD USD Communication expenses 173,265 65,608 22,139 8,928 173,265 65,608 22,139 8,928 8. Media, printing and copying Year to 31 Year to 31 Year to 31 Year to 31 December December December December 2018 2017 2018 2017 Le'000 Le'000 USD USD Media and stationery expenses 47,195 23,004 5,985 3,443 47,195 23,004 5,985 3,443 24 Energy Sector Utility Reform Project Donor: The World Bank international Development Association (IDA) Implementing Partners: The Ministry of Energy and the Electricity Distribution and Supply Authority (ED5A) Financial statements for the year ended 31 December 2028 Notes to the financial statements (continued) 9. Fuel and other utilities Year to 31 Year to 31 Year to 31 Year to 31 December December December December 2018 2017 2018 2017 Le'000 Le'000 USD USD Fuel 67,728 42,273 8,663 5,755 Vehicle Maintenance 25,995 5,044 3,345 691 Office Equipment Maintenance 3,920 - 489 - Vehicle License and Insurance 1,202 43,729 156 5,990 Office expenses 28,984 3,650 3,772 499 Electricity expenses 2,000 4,000 269 539 Generator & Other Utility Cost 29,254 - 3,796 - Rent - 111,375 - 15,000 159,083 210,071 20,490 28,474 10. Other operating costs Year to 31 Year to 31 Year to 31 Year to 31 December December December December 2018 2017 2018 2017 Le'000 Le'000 USD USD Audit fees 59,284.00 41,574 18,000 5,695 59,284 41,574 18,000 5,695 11. Consultancy cost Year to 31 Year to 31 Year to 31 Year to 31 December December December December 2018 2017 2018 2017 Le'000 Le'000 USD USD Consultancy fees 26,775,925 20,255,843 3,380,562 2,762,555 26,775,925 20,255,843 3,380,562 2,762,555 15 Energy Sector Utility Reform Project Donor: The World Bank International Development Association (IDA) Implementing Partners: The Ministry of Energy and the Electricity Distribution and Supply Authority (EDSA) Financial statements for the year ended 31 December 2028 Notes to the financial statements (continued) 12. Net finance income/(cost) Year to 31 Year to 31 Year to 31 Year to 31 December December December December 2018 2017 2018 2017 Le'000 Le'000 USD USD Exchange gain 2,609,955 944,395 - - Interest income 4,163 20,040 536 2,741 Interest expenses (4,279) (25,666) (544) (3,510) Miscellaneous income - 7,755 - 1,062 2,609,839 946,524 (8) 293 Bank charges (1,227,978) (261,791) (157,114) (35,707) Net finance income/(cost) 1,381,861 684,733 (157,122) (35,414) Miscellaneous income represents money deposited into the project's Sierra Leone Commercial Bank account, the source of which is unknown to management. 13. Cash and cash equivalent Year to 31 Year to 31 Year to 31 Year to 31 December December December December 2018 2017 2018 2017 Le'000 Le'000 USD USD Bank balance 13,155,875 24,028,436 1,575,556 3,203,792 13,155,875 24,028,436 1,575,556 3,203,792 1.6 Energy Sector Utility Reform P roject Donor: The World Bank International Development Association (IDA) Implementing Partners: The Ministry of Energy and the Electricity Distribution and Supply Authority (EDSA) Financial statements for the year ended 31 December 2018 Notes to the financial statements (continued) 14. Deferred income Year to 31 Year to 31 Year to 31 Year to 31 December December December December 2018 2017 2018 2017 Le'000 Le'000 USD USD Balance at 1 January 23,076,605 11,601,126 3,203,096 3,044,777 Remittance from IDA 20,183,619 22,626,947 2,609,163 3085081 43,260,224 34,228,073 5,812,259 6,129,858 Transferred to income statement (30,104,349) (11,151,468) (4,236,703) (2,926,762) 13,155,875 23,076,605 1,575,556 3,203,096 Represented by: Bank balance 13,155,875 24,028,436 1,575,556 3,203,792 Accumulated fund - (951,831) - (696) 13,155,875 23,076,605 1,575,556 3,203,096 17 �_ � � � - ао г. г� � ® о °' � �у rr г� rv ,w 7° ri и � ь. W 07 t] ��� 7.. � sб }'! -.. -. и ач � С7 . аэ 4 4 �'�+ "' sji �i � Н Яй � � � � `� у eG �v�. С7 t^ °' ti СУ" .D �д N г`v N ....... q�' q ш ш С7 С-4 N�. +--' . р�.... ы .г� � �а`. �i са.� � О`� q°� w � сд .. *S о0 И.. 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Contingencies There were no contingencies as at 31 December 2018. (2017, Nil) 17. Commitments Commitments at the reporting date was USD 6,695 in respect of fees for the audit of the project financial statements for the year ended 31 December 2018 (2017: USD 6,695) 18. Subsequent events Events subsequent to the reporting date are affected only to the extent that they relate directly to the financial reporting and the effect is material. There were no significant events as at the date the financial report was approved. -19 bakertilty Baker Tilly SL, Baker Tilly House 37 Siaka Stevens Street P.0 Bo 100 Freetown Sierra Leone Telephone +(232) 30-444-100 Opinion on the Statement of expenditure submitted for the year ended 31 December 2018 We have audited the Statement of Expenditures of the Energy Sector Utility Reform Project, funded by the International Development Association (IDA), submitted in support applications for reimbursement for expenditure in accordance with the IDA Agreement letter. Our examination was made in accordance with International Standards on Auditing and accordingly included such tests of the accounting records, verification of assets and liabilities, review of systems of internal controls and other auditing procedures that we considered necessary in the circumstances. Opinion In our opinion, the Statement of expenditure, the supporting summary sheet and information submitted with them can be relied upon to support the applications for grant disbursement by the International Development Association (IDA) for expenditure incurred for the purposes of the project as specified in the above-mentioned IDA Agreement Document. Freetown Chartered Accountant Date C) A Momber ilrm of the Baker Tilly Worldwide Network of Indepandent Accounting Firrn Eeorutive C hrman; Raymond M Davies, Managing Partner: Derrick L Kawaley Partners: is-aka A Baiogun, Agneo N Sawye 20 н --• -� и рр _ЯUи � q С о +'� �_ ^✓ ++ р Г^ 1С3 С М! м+� О('�7 (*i �I .._... � � ц�j � � � �, �гJ � � О�С � � 9мG� 'ьt7 � С�ч � ,.�� III 4 0..д а� О ц а} D r7 О� !ц ^+ С+. 'ьС N С- ОС С5 � ':. �+ ° � � ? � � и �с во м о г- осл а, о о.�s `� ц а „� а� sc гы и�r ги м га м ~д � й+�+ й Q � � �� кС � т � С '--�`* � �ar ач �+. � 4 Я 4,.. у � р'О р i i i..... i i �. i ь � ....... 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С� С-- t-- •ы.ь � •С Sa° i. � °rдG рр Ь}Л р, �U U [7 � у С2. �}. � � � у С3 fl7 N � а. .� � �.х, Q� еС, � д� N д © I� w Sб � � "'' �t � 'еУ � N N N � � � N,--i ^ы н,--i .� Ф N N N а '� � v � � � ..,� а--� � О U � . г'� г. � и�Сг Г-- об � С7 � СЧ г� !(� � о с� о сз в п,� � � с� сэ сз сз о с с о v о р � р, s�, д� с�. �. а� а, �+, А. д, � � � � � � � � � � � � _ р � гл rл и гл rл и гл и va гл _ �, С � i,�7 [�.� W W W W W W W f� Gб .� С ••• ++ w � �+ Ci '� е� � � ы - С7 � � L1 гл � � б�i � G��ii С ,� й. � � � Q� о �у ,-, � д :� � � � _ � � О � � � � � � � � � � � о г� о � и. � � � � � а, s, +� з � О � � � � � Energy Sector Utility Refttfn Project Donor. The world Bank International Development Association (IDA) - 'rhe Ministry Of Energy and the Electricity Distribution and supply A uthOritY (EDSA) implementing Partners. Financial statements for th e yea r ended 31 I)ecem ber 2 018 pMU[MoF Special account statement for the year 31 December 2 018 Account NO: 003001014214030130 Depository bank* Sierra Leone Commercial Bank (SL) Limited Address: Siaka Stevens Street, FreetoWR Currency: United States Dollars Account Activity Grant from International Development Association (IDA) 2017 in United States Dollars 2018 Balance at 1 January 3,203,792 3,045,473 Funds transferred by IDA 2,609,163 3,085,081 Other income (Net) (8) 293 6,130,847 Interest income 5,812,947 Expenditure: project support cost (643,316) (82,253) (22,139) (8,928) Communication (5,985) (3,443) Media, printing and copying (20,576) (28,474) Fuel and other utility costs (7,699) (5,695) other operating costs (157,114) (35,707) Bank charges (3,380,562) (2,762,555) Consultancy cost Total expenditure (4,237,391) (2,927,055) Balance as at 31 December 1,575,556 3,203,792 23 bakertitty Baker Tully SL Bake: iVMy House 37 Siaka Stevens Street P.0 Bo 100 Freetown Sierra Leone Telephone +(232) 30-444-100 Report of the Independent_Auditors of the Project's PMUJMOE USD Special account statement -Account number 003001O14214030130 Opinion in our opinion, the receipts are properly accounted for and the withdrawals were made for the purpose of the project in accordance with the grant agreement. The special account statement gives a true and fair view of the ending balance for the year ended 31 December 2018. In accordance with the provisions of the terms of reference of this audit, we confirm as follows: * Funds provided to the project have been used for their intended purposes. * The special account of the project has been maintained in accordance with the provisions of the Grant Agreement and with disbursement rules and procedures. Freetown Chartered Accountants Date: 1k A ueSa AMembeU Firm of the Baker TiLty Wortdlwide Network of Independent AccouIntingi FITMS Executive Chairmani RayrnTd M Davies, Managing Partner: Derrick L. KawaLey Partners: lsiaeka A Bakagun, Agnes N Sawyer