REPUBLIC OF GHANA

MINISTRY OF HEAL TH P. 0. BOX M44

ACCRA

MATERNAL AND CHILD HEALTHS NUTRITIDN IMPROVEMENT PROJECT (MCHNIP) MINISTRY OF HEAL TH (MoH) AND GHANA HEAL TH SERVICE [IDA LDAN No. 54S3D)

PROJECT FINANCIAL STATEMENTS 31 DECEMBER 2ms

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TABLE OF CONTENTS

GENERAL INFORMATION

INDEPENDENT AUDITORS' REPORT ON MCHNIP COMPONENT '1' AND SUB COMPONENTS '2.2' & '2.3' FINANCIAL STATEMENTS

STATEMENT OF FINANCIAL POSITION

STATEMENT OF SOURCES AND USES OF FUNDS

NOTES TO THE FINANCIAL STATEMENTS

INDEPENDENT AUDITORS' REPORT ON MCHNIP SUB -COMPONENT '2 .1' FINANCIAL STATEMENTS

STATEMENT OF SOURCES AND USES OF FUNDS

NOTES TO THE FINANCIAL STATEMENTS

PAGE REFERENCE

1

2-3

4

5

6-7

8-9

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11 - 12

GENERAL INFORMATION PROJECT BACKGROUND

PROJECT IMPLEMENTATION TEAM

TECHNICAL ADVISORY GROUP

ADDRESS

AUDITORS

BANKERS

The Maternal and Child Health & Nutrition Improvement Project (MCHNIP) is part of ongoing efforts to address prevailing disparities in access to maternal and child health services, and is expected to improve utilization of community-based health and nutrition . The Project will strengthen the community delivery structures for promoting health and nutrition services by supporting the community-level service delivery platform under the umbrella of the Community-Based Health Planning and Services (CHPS) . The Project Development Objective (PDO) is to improve the utilization rates of community-based health and nutrition services by women of reproductive age, pregnant women, and children under the age of two years. Objectives: The PDO will be achieved by: (i) increasing availability of high impact health and nutrition interventions , and (ii) addressing access barriers using existing community-based health service delivery strategies and communications channels to · inform, sensitize and motivate care­givers , community leaders and other key audiences. Source of funding: The International Development Association (IDA) will provide an amount of SOR 44 million as a credit facility to support the MCHNIP in Ghana. IDA Loan Amount: SOR 44 million Component 1: Community-Based Maternal and Child Health and Nutrition Interventions Component 2: Institutional Strengthening Capacity Building, Supervision, Monitoring and Evaluation, and Project Management Approval date: 30 July, 2014 Start date: 17 February, 2015 Completion date: 30 June, 2020 Implementation Agencies: Ministry of Health - Sub Component 2.1 Ghana Health Service - Component 1 and Sub Component 2.2

Dr. Afisah Zakariah , Chief Director - Chairman Dr. Anthony Nsiah-Asare, Director-General/GHS Dr. Koku Awoonor, Director PPME/GHS Dr. Emmanuel Odame, Director PPME/GHS Dr. Daniel Osei , MoH Mr. Isaac Kwaku Asare , Financial Controller Mrs. Ramatu Ude Umanta, Director of Finance/GHS Mr. Barnabas Yeboah , MCHNIP Focal Person MoH Mr. Bright Agyekum, Procurement Manager/MoH

Dr. Anthony Nsiah-Asare, Director-General/GHS Dr. Kaku Awoonor, Director PPME/GHS Mrs. Ramatu Ude Umanta, Director of Finance/GHS Dr. Samuel Kaba, Director ICD Dr. Badu Sarkodie , Director Public Health Mr. Yaw Boakye, Project Accountant/GHS Mr. Kofi Poku, Director HASS

Ministry of Health P.O. Box M44 Accra

Ghana Audit Service Post Office Box MB 96

UT Bank UniBank UM Bank Ecobank

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AUDIT SERVICE

In case of reply the number and date of the letter should be quoted

My Ref. No: .. .. fl!!.~~~!.Y:i!.~!.Y.~ .. . Your Ref. No~ ................................ .

Tel: 233 (0) 302 664920/28/29 Fax: 233 (0) 302 6751495 Website: www.ghaudit.org

Good Governance and Accountability

INDEPENDENT AUDITOR'S REPORT

P. 0 . Box .. ............ .M •. 9.6 .............. ................... .

ACCRA ...............................................................................

11 JULY, 17 .... .............. .. .... .............. ......... ........ .... 20 ............. .

TO THE CHIEF DIRECTOR, MINISTRY OF HEAL TH (MoH)

REPORT ON THE PROJECT FINANCIAL STATEMENTS

We have audited the financial statements of the Maternal and Child Health Improvement Project (MCHNIP) under the International Development Agency (IDA) Loan referenced 54630 which , comprises the statement of financial position as at 31 December, 2016, and the statement of sources and uses of funds for the period ended 31 December, 2016 which , have been prepared under the historical cost convention and on the basis of the accounting policies set out in Note 1.

Management's responsibility for the financial statements

The financial statements for Component '1' and Sub-Components '2.2' and '2 .3' are the responsibility of the Management of the MCHNIP under the Ghana Health Service (GHS) . The Management of MCHNIP is responsible for the preparation and fair presentation of these financial statements in accordance with generally accepted and accounting practice and the Loan Financing Agreement (IDA Loan referenced 54630) as well as for such internal control as management determined is necessary to enable the preparation of the financial statements free from material misstatement whether due to fraud or error.

This responsibility includes designing , maintaining adequate financial management arrangements and ensuring that these continue to be effective throughout the reporting period ; maintaining proper accounting records, which disclose with reasonable accuracy at any time of the financial position of the Project; designing, implementing and maintaining internal controls relevant to the preparation and fair presentation of the Financial Statements and ensuring that they are free from material misstatements, whether due to fraud or error; safeguarding the assets of the project; 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 independent opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards of Supreme Auditing Institutions (ISSAls) and the guidelines in the Loan Financing

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Agreement. Those standards require that we comply with the ethical requirements and plan and perform the audit to obtain reasonable assurance on whether the Financial Statements are free from material misstatement whether caused by fraud, other irregularity or error.

An audit includes 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 risk of material misstatement of the Financial Statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal controls relevant to the entity's preparation and fair presentation of the project 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 .

We believe that we have obtained sufficient appropriate audit evidence to provide a basis for our audit opinion .

Opinion

In our opinion , the Financial Statements for Component '1' and Sub-Components '2.2' and '2.3' present fairly, in all material respects , the financial position of MCHNIP as at / 31 December, 2016, and the results of its operations for the period is in accordance with the provisions of the Loan Financing Agreement (IDA Loan referenced 54630) and the · accounting policies set out in Note 1 of the Project financial statements.

Report on compliance

In addition , Management has complied , in all material respects , with the covenants of the Loan Financing Agreement (IDA Loan referenced 54630) , MCHNIP Manual and th:/ applicable Government Laws and Regulations, and that the funds received during the period under aud it were used for the eligible purposes for wh ich they were intended an were properly accounted for as at the year ended 31 December, 2016.

Restriction of use

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GHANA HEAL TH SERVICE MARTENAL AND CHILD HEAL TH & NUTRITION IMPROVEMENT PROJECT.

COMPONENT '1' & SUB COMPONENTS '2.2' AND '2.3' IDA LOAN NUMBER: 54630

STATEMENT OF FINANCIAL POSITION

NON-CURRENT ASSETS

Non capital expenditure

CURRENT ASSETS

Bank balance Advance

Total Assets

FINANCED BY IDA Designated Loan A/C Other Income

Date:

AS AT 31 DECEMBER, 2016

NOTE

2

3

4

5 6

31 December 2016 USO$

7,946,058.07

6,731 ,140.41 650,000.00

7,381.140.41

1523272198.48

15,312 ,501 .79 14,696.69

152327 2198.48

31 December 2015 USO$

3,200,050.00

1,789,177.49

250,000.00 2,039,177.49

522392227.49

5,232 ,025.00 7,202.49

52239,227.49

Director of Finance, GHS Mrs. Ramatu Ude Umanta Date:

The attached notes 1 to 6 form an integral part of these financial statements.

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GHANA HEAL TH SERVICE MARTENAL AND CHILD HEAL TH & NUTRITION IMPROVEMENT PROJECT -

COMPONENT '1' & SUB COMPONENTS '2.2' AND '2.3' IDA LOAN NUMBER: 54630

STATEMENT OF SOURCES AND USES OF FUNDS FOR THE PERIOD ENDED 31 DECEMBER, 2016

Balance as at 1 January Receipts:

Replenishment to IDA Loan Designated A/C

Other Receipts/Interest earned

Total Project Receipts

Uses of Funds

Component 1: Community Based Maternal and Child Health and Nutrition

1.1 Strengthening Service Delivery 1.2 Piloting Community Performance Based Financing (CPBF)

1.3 Other sub activities Component 2: Institutional Strengthening Capacity Building, Supervision, Monitoring and Evaluation and Project Management 2.1 Stewardship, Policy and Lessons Learning 2.2 Supervision, Monitoring and Evaluation and Project 2.3 Other sub activities

Total Project Expenditure

Balance as at 31 December

Reconciliation of Designated Account as at 31 December

Bank balance Interest

NOTE 2016 US$

1,789,177.49

10,080,476.79

7 494.20

11,877.148.48

3,384,005.33

149,120.00

0.00

871 ,358.33

741 ,532.13

0.00

5,146,015.79

6,731.132.69

Cummulative Total

2015 2016 US$ GH¢

0.00 0.00

5,232,025.00 15,312,501 .79

7,202.49 14.696.69

5,239,227.49 15,327,198.48

1,670,400.00

0.00

0.00

1,679,600.00

100,050.00

0.00

3,450,050.00

1,789,177.49

5,054,405.33

149,120.00

0.00

2,550,958.33

841 ,582.13

0.00

8,596,065.79

6,731,132.69

6,723,638.49 1,781,975.00 6,716,436.00 7 494.20 7.202.49 14 696.69

6,731,132.69 1,789,177.49 6,731,132.69 The attached notes 1 to 6 form an integral part of these financial statements.

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GHANA HEAL TH SERVICE MARTENAL AND CHILD HEAL TH & NUTRITION IMPROVEMENT PROJECT -

COMPONENT '1' & SUB COMPONENTS '2.2' AND '2.3' IDA LOAN NUMBER: 54630

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER, 2016

1. Significant Accounting Policies

The following are summary of the significant accounting policies adopted in the preparation of the financial statements:

Basis of accounting

The financial statements have been prepared on IPSAS cash basis and under the historical cost convention . Th is means that revenue and expenditures are recognized in the financial statements only when they are receive and paid for respectively. Under the historical cost convention , assets and liabilities are reflected or disclosed in the financial reports at the cost incurred or price paid at the time of transaction .

Property, plant and equipment

All Property, Plant and Equipment acqu ired or constructed under all sources of funding have been stated at the actual payments made during the year and shall not be depreciated.

Depreciation

No depreciation has been charged in the financial statements .

Revenue and expenditure

Revenues are recogn ised when funds are rece ived from IDA and expenditures are accounted for in the year when goods, works and services are incurred and paid .

Donor/Financier

Funds received are accounted for on cash basis.

Foreign currency exchange

Foreign currency translation for funds received from IDA are converted using the actual spot exchange rate at the conversion from special to local account. The reporting currency is in Ghana Cedis.

Non capital expenditure

All non-capital items such as Goods & Services, Consultancies, Train)ng , and ot~er Project Operating Costs are shown in the financial statements under Non-Capital Expenditure.

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2. Non capital expenditure

Opening Additions during Closing balance the year balance

1 January, 2016 31 December, 2016 US$ US$ US$

Goods, Works, non 3,056,000.00 2,626,437.61 5,682,437.61 Consulting Services, etc. Under Part A.1 (a)

Goods, non consulting 144,050.00 1,970,450.46 2,114,500.46 Services, Consultant's ser-Vices, etc. under Parts A.1 (b) and B

CPBF Service Grants 0.0 149,120.00 149,120.00 Under Part A2

3,200,050.00 4,746,008.07 7,946,058.07

3. Bank balance

This represents available cash and cash equivalents for the continuation of the project and settle any project related liabilities.

4. Advance to MoH

5.

6.

This represents an advance to MoH for initial monitoring and set up activities which will be refunded to GHS.

IDA Funds

2016 2015 US$ US$

Balance b/f 5,232,025.00 0.00 Releases 10,080,476.79 5,232,025.00 Balance c/f 15,312,501.79 5,232,025.00

Other income

This represents interest earned on bank balance as at the end of the year.

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In case of reply the number and date of the letter should be quoted

My Ref. No: .. ... ~.~.~.~(':!'!..~(Y!.. Your Ref. No~ .. .... .................. ... .. ... .

Tel: 233 (0) 302 664920/28/29 Fax: 233 (0) 302 6751495 Website: www.ghaudit.org

AUDIT SERVICE

Good Governance and Accountability P. 0. Box ..... ........... M ... 96. .............................. ..

.... .. ...... .. ....... ........ .......... A~.~B.A ......................... .

11 JULY, 17 .... .. ......... .................. ..... .. ......... .......... 20 ............. . INDEPENDENT AUDITOR'S REPORT TO THE CHIEF DIRECTOR, MINISTRY OF HEAL TH (MoH)

REPORT ON THE PROJECT FINANCIAL STATEMENTS

We have audited the financial statements of the Maternal and Child Health Improvement Project (MCHNIP) under the International Development Agency (IDA) Loan referenced 54630 which , comprises the statement of sources and uses of funds for the period ended 31 December, 2016 which , have been prepared under cash basis and historical cost convention.

Management's responsibility for the financial statements

The financial statements for Sub-Components '2.1' are the responsibility of the Management of the MCHNIP under the Ministry of Health (MoH) . The Management of MCHNIP is responsible fo r the preparation and fair presentation of these financial statements in accordance with generally accepted and accounting practice and the Loan Financing Agreement (IDA Loan referenced 54630) as well as for such internal control as management determined is necessary to enable the preparation of the financial statements free from material misstatement whether due to fraud or error.

Th is responsibility includes designing , maintain ing adequate financial management arrangements and ensuring that these continue to be effective throughout the reporting period ; maintaining proper accounting records, which disclose with reasonable accuracy at any time of the financial position of the Project; designing , implementing and maintaining internal controls relevant to the preparation and fair presentation of the Financial Statements and ensuring that they are free from material misstatements, whether due to fraud or error; safeguarding the assets of the project; 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 independent opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards of Supreme Auditing Institutions (ISSAls) and the gu idelines in the Loan Financing Agreement. Those standa rds require that we comply with the eth ical requirements and plan and perform the audit to obtain reasonable assurance on whether the Financial

8

An audit includes 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 risk of material misstatement of the Financial Statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal controls relevant to the entity's preparation and fair presentation of the project financial statements ln 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 .

We believe that we have obtained sufficient appropriate audit evidence to provide a basis for our qualified audit opinion .

Opinion

In our opinion , the Financial Statements for Sub-Components '2.1' present fairly, in all material respects , the financial position of MCHNIP as at 31 December, 2016, and the results of its operations for the period is in accordance with the provisions of the Loan Financing Agreement (IDA Loan referenced 54630) and the accounting policies set out in Note 1 of the Project financial statements.

Emphasis of matter paragraph

In forming our opinion on the financial statements, which is not modified , we have considered the expenditure incurred and the disclosure made in note 3 and 4 concerning monitoring and procurement expenses and expressed concern about untimely submission of monitoring and evaluation reports as well undue delays in the procurement of essential items for the project. This condition in our view poses high risk towards the Project success, if not immediately addressed .

Report on compliance In addition, Management has complied , in all material respects, with the covenants of the Loan Financing Agreement (IDA Loan referenced 54630), MCHNIP Manual and the applicable Government Laws and Regulations, and that the funds received during the period under audit were used for the eligible purposes for which they were intended and were properly accounted for as at the year ended 31 December, 2016.

Restriction of use This report is intended solely for the use of the Management of the project, IDA, and the Government of Ghana, and should not be used for any other purpose.

Signed by: ~ '~ .' '!... JI ___ __,..

~::.::;;:;..-----GEORG - WINFUL

DEPUTY ,(UDI R- E~ RAL/PSAD FOR: AUDITOR-GENERAL

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MINISTRY OF HEAL TH MARTENAL AND CHILD HEAL TH & NUTRITION IMPROVEMENT PROJECT - SUB

COMPONENT '2.1' IDA LOAN NUMBER: 54630

STATEMENT OF SOURCES AND USES OF FUNDS FOR THE PERIOD ENDED 31 DECEMBER, 2016

NOTE Balance as at 1 January

Receipts:

IDA Loan Designated USO A/C

IDA Loan Designated Cedi A/C 2

Total Project Receipts

Uses of Funds Operating Expenses

Monitoring & Evaluation

Workshop & Seminars

Procurement Expenses

Total Project Expenditure

Balance as at 31 December

Reconciliation of cash and cash equivalents as at 31 December IDA Loan Designated USO A/C IDA Loan Designated Cedi A/C Bank and cash balances as at 31 December

Signed: ·- - I"-· Chief Director, MoH Dr. Afisah Zakariah Date:

I

3

4

5

6

2016 GH¢ 420,200.00

0.00

1,530,000.00

1,950,200.00

30,000.00

394,000.00

0.00

121,905.21

545,905.21

1,404,294.79

0.00 1,404,294.79

1,404,294.79

2015 GH¢

0.00

0.00

875,000.00

875,000.00

0.00

45,450.00

302,400.00

106,950.00

454,800.00

420,200.00

0.00 390,200.00

390,200.00

Cummulative Total 2016 GH¢

0.00

0.00

2,405,000.00

2,405,000.00

30,000.00

439,450.00

302,400.00

228,855.21

1,000,705.21

1,404,294.79

0.00 1,404,294.79

1,404,294.79

Financial Controller, MoH Mr. Isaac Kwaku Asare Date:

The attached notes 1 to 6 form an integral part of these financial statements.

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MINISTRY OF HEAL TH MARTENAL AND CHILD HEAL TH & NUTRITION IMPROVEMENT PROJECT - SUB

COMPONENT '1.2' IDA LOAN NUMBER: 54630

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER, 2016

1. Significant Accounting Policies

The following are summary of the significant accounting policies adopted in the preparation of the financial statements:

Basis of accounting

The financial statements have been prepared on I PSAS cash basis and under the historical cost convention . This means that revenue and expenditures are recognized in the financial statements only when they are receive and paid for respectively. Under the historical cost convention , assets and liabilities are reflected or disclosed in the financial reports at the cost incurred or price paid at the time of transaction .

Property, plant and equipment

All Property, Plant and Equipment acquired under all sources of funding have been stated at the actual payments made during the year and shall not be depreciated in the financial statements

Revenue and expenditure

Revenues are recognised when funds are received from IDA and expenditures are accounted for in the year when goods, works and services are incurred and paid .

Donor/Financier

Funds received are accounted for on cash basis.

Foreign currency exchange

Transactions that are denominated in currencies other than the United States Dollars are translated in United States Dollars at the exchange rate prevailing at the date of transactions . However, transactions in the sources and uses of funds for the year are translated using the average spot rate. Bank and cash balances denominated in other foreign currencies are translated into US Dollars at the rate prevailing at the end of the year.

Non capital expenditure

All non-capital items other than fixed assets shall be treated as fictitious assets in the statement of financial position .

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2. Operation cost

This relates to the administrative and office incremental cost towards implementation activities.

3. Advanced from GHS

This represents advanced funds received from GHS to be reimburse by MoH upon receipt of funds from World Bank.

1 January, 2016 USO$

First Advance 250,000.00 )

Second Advance 400,000.00 I 6501000.00

4. Monitoring and Evaluation

Website development Performance Review Monitoring Review of APWs

5. Workshop and Seminar

CPBF Dissemination Budget Committee Development of APWs

6. Procurement Expenses

Development of ToR for consultancy Development of ToR for goods Evaluation Assessment of Ambulance Stations

2016 GH¢

0.00 101 ,000.00 134,000.00 159,000.00 3941000.00

2016 GH¢ 0.00 0.00 0.00 0.00

2016 GH¢

0.00 0.00

21 ,032 .21 100,873.00 1211905.21

2016 2015 GH¢ GH¢

0.00 875,000.00

1,530,000.00 0.00 115301000.00 8751000.00

2015 GH¢

45,450.00 0.00 0.00 0.00

45A5o.oo

2015 GH¢

71 ,100.00 61 ,000.00

170,300.00 302AOO.OO

2015 GH¢

51 ,750.00 55 ,200.00

0.00 1061950.00

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