OROMOSELF RELIANCEASSOCIATION

REPORT ANDACCOUNTS

FORTHE YEARENDED31sTDECEMBER,2013

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P. O. Box 3323

Addis Ababa

Ethiopia

E-mail: agselassie@ethionet.et

AWEKEGERRE SEIASSIE ANDCOMPANY

AUl1IORIZED CERllFIED PURUC AUDITORS

Fax. 011-4655400

Tel. 011-4655454

011-6614829

011-6182530

nOJq.'Jill ~tHb 'he; h.(r}yOJ': r1'tlq.~1\1~ ()C'ttf,~Y: r ,,~.1~ Y:C1:1"y',1c!!" O~'\OC ,

AWEKE GEBRE SELASSIE & COMPANY, AUTHORIZED CERTIFIED PUBLIC AUDITORSLimited !'artnership

P.O.Box3323Addis Ababa

Ethiopia

E-mail: agselassie@ethionet.etTel.Fax

251 011 465 5454251 011 46554002510116614829251011 6182530

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OFOROMO SELF RELIANCE ASSOCIATION

We have audited the accompanying balance sheet of Oromo Self Reliance Association as at

31st December, -2013 and the related income and expenditure statement prepared under

historical cost convention for the year then ended.

RESPECTIVE RESPONSIBILITIES OF MANAGEMENT AND AUDITORS

The preparation of the financial statements is the responsibility of the management of theOromo Self Reliance Association (OSRA) It is our responsibility, based on our audit, toexpress our independent opinion on these financial statements.

BASIS OF OPINION

We conducted our audit in accordance with generally accepted auditing standards. Thosestandards require that we plan and perform the audit to obtain information and explanationsconsidered necessary in order to provide us with sufficient evidence to give reasonableassurance as to whether the financial statements are free of material misstatement whether

caused by fraud or other irregularity or error.

An audit includes examining, on a test basis, evidence supporting the amounts anddisclosures in the financial statements. An audit also includes assessing the accounting,principles used and significant estimates made by management, as well as evaluating theoverall financial statement presentation.In forming our opinion we also evaluated the overalladequacy of the presentationof informationin the financial statements. We believe that ouraudits providea reasonablebasis for our opinion.

- OPINION

A uthorized by the affi ce of the Federal A ud itor General of the Ethi opi an Government

OROMO SELF RELIANCE ASSOCIATION (OSRA)

BALANCE SHEET

AS AT 31STDECEMBER. 2013

Notes

Currency: ETHIOPIAN BIRR

2012

ASSETS

Cash and bank

Receivable from Cereal Bank

6

Associations

Sundry debtors

Staff debtors

7

8

9

CURRENT LIABILITIES

Accounts payable

Tax payable

10

11

375,977.56

14.213.14

390.190.70

Net assets (liabilities) 13.883.763.68

REPRESENTED BY

- Restricted fund balance

Revolving fund balance

General fund balance

12

13

14

9,116,792.81

1,449,845.20

3.317.125.67

13.883.763.68

Aweke Gebre Selassie & co.Authorized Certified Public Auditors

399,926.56

22.353.44!

422.280.00

11.392.398.35

7,159,554.90

1,449,845.20

2.782.998.25

11.392.398.35

\13,259,370.03 10,820,488.49

173,010.80 130,154.80

835,708.43 838,457.83

5.865.12 25.577.23

14,273,954.38 11.814.678.35

OROMO SELF RELIANCE ASSOCIATION (OSRA)INCOME AND EXPENDITURE STATEMENTFOR THE YEAR ENDED 31STDECEMBER. 2013

Currency: ETHIOPIAN BIRR

Notes 2012INCOME

DonationOther income

15

16

Less: Direct Project Expense 17 (73%)

12,777,469.07562.682.28

13,340,151.35

7.894.076.25

5,446,075.10

12,793,144.21350.574.97

13,143,719.18,

8.008.472.55

5.135.246.63

Aweke Gebre Selassie & co.Authorized Certified Public Auditors

2

Fixed assets 18 16,338.98 313,664.3qSalary 928,835.81 754,726.4qprovident fund, allowance & benefits 336,304.04 -

Printing and stationery 148,817.42 101,379.78,Utilities and offices supplies 206,708.02 94,825.01IPer diem 205,781.59 154,981.25Office rent - 15,300.0QSundryexpenses/miscellaneous - 101,014.74,Fuel and lubricants/transportation 468,118.49 524,599.78,Repair and maintenance of

vehicle and equipment 315,221.11 335,623.50Insurance expense 93,205.61 26,318.19Base line survey 10,612.00 -

Evaluation and monitoring 222,466.70 244,422.32Training fee for staff 2.300.00 6.000.00

Total administrative expense (27%) 2.954.709.77 2.976.176.96Excess of income over expenditure-

(deficit) 2,491,365.33 2,159,069.67Balance brought forward 11.392.398.35 9.233.328.68

13,883,763.68 11,392,398.35,Balance transferred to note 12,13 and 14 13.883.763.68 11.392.398.35

OROMO SELF RELIANCE ASSOCIATION (OSRA)

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31sTDECEMBER. 2013

1.

2.

-

Currency: ETHIOPIANBIRRESTABLISHMENT

Oromo Self Reliance Association (OSRA) was established and registered by the

Ministry of Justice on April 1995 and re register as Ethiopian Resident Charities

in accordance with Charities and Societies proclamation number 621/2009 In

October, 2009. OSRA established by a group of interested and dedicated

intellectualprofessionalspublic and businesspersonnel and community ladders. It I

is a voluntary, non-profit making organization.

OBJECTIVES OF THE ASSOCIATION

OSRA entails to achieve the following objectives/purposes:

a) To assist the poor and needy community so as to engage in their socio

economic development, promote sense of self reliance and culture of

collaborativeeffort and workingtogether.

b) To improve community centered integrated development programs that

contribute to improve the livelihoodsof the community such as provision of

Water, health, education and agricultural development services.. .

c) To Promote sustainable use, development an management of natural

resources and practices to protect environmental and thereby eliminate the

consequences of climate change and natural calamities.

d) To support relies and rehabilitation efforts so as to protect the communitiesfrom natural calamities.

e) To support and promote anti harmful traditional practices that endangers the

health of women and children, and assists the effort to economic

empowerment of women and children.

f) Promote the advancement of the language, arts culture and heritage ofOromo

g) Encourage the youth engage in their socio economic advancement and

support their effort.

Aweke Gebreselassie & Co.Authorized Certified Public Auditors

d)

- e)

3. THE INTERVENTION AREA OF THE ASSOCIATION

Rural water supply

Food security nutrition and livelihood improvement

Promotion of Cereal banks, farmers marketing organizations and value

chain.

Promotion of zero grazing improved heifer breed introduction

Environmental protection

Sensitization on gender and anti harmful traditional practices.

4. OSRA works in various zone of Oromia regions currently, it operates in Ada'a

Berga 0Nest Showa Zone), Akaki District (special zone of Oromia) Ada'a District

(East Showa Zone) and Bacho, lIu and Tole district (South West Showa Zone).

5. ACCOUNTING POLICIES

Dromo Self Reliance Association records and prepares its financial statements I

based on generally accepted accounting principles to ensure that accounting

policies are applied on consistent basis to determine the value of assets, liabilities

and results of the operations in a given accounting year.

Accordingly, Oromo Self Reliance Association has adopted the following accountingpolices:-

a) Because of its simplicity to determine revenues and expenses modified cash basisaccounting is adopted.

b)

c)

Expenditure on fixed assets is expensed in the year when it occurs.

Donated commodities are valued and included in the books of the association as

revenues and expenses simultaneously.

All grants and donations are recorded as and when received from donors.

Revenues and expenses are recognized when items are received and paid

respectively.

f) Free of charge services of the officers of the Association and other professionalsare qualified and included in the financial records both as income and expensesimultaneously.

g) Bad and doubtful debt is recognized when balances due are irrecoverable ordoubtful of recovery.

h) The result of the operation of each year (excess of income over expenditure or

vice versa) is transferred to fund accounts.

Aweke Gebreselassie & Co.

Authorized Certified Public Auditors 4

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6. CASH AND BANK - BIRR 10.820.488.49

The make up of cash on hand and at bank is as follows:-

Cash on hand petty cashAIB NQ0130407592000 Current AlC -OSRA

AI B Saving Alc NQ2329-AIB NO.01304009366200 Current AlC watercanOCB No. 0200095 Current AlC-OSRAOCB No. 0200096 Current AlC-Water can

OCB saving AlC No. 02002521

7. RECEIVABLE FROM CEREAL BANK ASSOCATION

Gada CB AssociationInsilole AssociationAle Qore CB AssociationWorabo CB AssociationBoreta Guji CB AssociationSiqqee CB AssociationBishan Dimo CB Association

8. SUNDRY DEBTORS

Wase Bulcha (cash miss appropriated)Abera AbdissaSorsa DebelaSafe Water Mining P.L.C.Kebede HirphoAweke G/SelassieAssefa KidaneTadesse Birhanie

Aweke Gebreselassie & Co.

Authorized Certified Public Auditors

128,514.26

11,028,623.52272,079.36110,258.68199,542.21

1.520.352.00

13.259.370.03

50,000.00110,000.00

2,022.0010,988.80

173.010.80

116,686.005,266.16

12,466.67696,789.60

2012

355.20

1,~43,737.17t

7,291,817.44

32,397.40106,733.6636,363.16

2.009.084.46

10.820.488.49

5,988.00

2,022.0010,988.80

. 70,900.00 \

7,286.0032.970.00

130.154.80

106,686.005,266.16

12,466.67701,799.00

2,000.0040.00

10,200.00

838.457.83

Income tax

Withholding tax

Pension contribution

15.08

14,198.06

18,824.18

2,127.901.401.36

22.353.4414.213.14

Aweke Gebreselassie & Co.

Authorized Certified Public Auditors

9. STAFF DEBTORS

2012

SintayehuMegerssa 574.57 -WondwossenAsfaw 49.78 49.78HusenAli 269.05 3,195.04\Getu Dadi 2,840.00 2,840.00Denitu Herpessa 20.52 3,434.53Shiferaw Miressa 322.02 1,216.02Tekle Tolera 1,760.00Aster Hailu 29.18Tafesse Ero - 14.841.86

5.865.12 25.577.23

10. ACCOUNTS PAYABLE

CIDR/Guarantee/payableto WASASA 172,069.49 172,069.49EndehoHalayu (Retention) 400.00 400.00Gurmessa Lelisa (RV. fund) 418.90 418.90Tariku Dinka (Retention) 425.00 425.00'Kebede Hirpho (Retention) 3,454.15 3,854.15Assefa Kidane (Retention) 4,550.00 -

Zerihun Gethahun(Retention) 350.00 350.00Tadess Birehanu(Retention) 525.00 225.00KSR (Retention) 89,939.01 89,939.01Lema Chaka (Retention) 3,200.00 6,320.00Oromiya RevenuBearue(Cheques)

paid but not collected 7,244.87 7,244.87Amare Alemu (Retention) - 1,200.00MestyConstructionB.C 28,551.69 28,551.69Safe Water MiningP.L.C(Retention) 61,696.00 85,775.00Kuma Gurara 3.153.45 3.153.45

375.977 .56 399.926.56

11. TAXES PAYABLE-

12. RESTRICTED FUND

Integrated Water Supply and Sanitation Project in Tole

District (CAFODITROICER II)

Promotion of Anti Harmful Traditional Practices And Gender

Sensitization (CCFD)

Promotion of Zero Grazing and Improved Heifer

Production (ICCO)

Becho and IIIu Clean Water Supply and Sanitation for School

Project (water can III)

Ensuring Food Security Through Promotion & Small Ruminant

and Marketing using Zero Grazing (WSM)

Integrated Community and School Based Water Supple and

Sanitation Project (CCFD III)

The Promotion of Farmers Marketing Organization

Competitiveness on Agriculture Commodity Value Chain

(ICCO III)

School Water Supply Sanitation and Hygiene Education

(Elisabeth and Amilie)

Disaster Risk Management (!CCO)

Livelihood improvement and environmental protection (CCFD)

Integration of ICT on farmers marketing organization

Competitiveness (ICCO)

School based water supply and sanitation (Water can)

- Community WASH (Elisabeth and Amelie ,KBF)

Community WASH -water can

School wash -WSM

4,462,597.55

328,372.63

306,906.53

2012

1,466,821.22

126,012.67

2,511,957.51

7,191.62

246,589.93

229,207.02

Aweke Gebre,e!as,ie & Co.

Authorized Certified Pub!ic Auditor, 7

1,547,028.66 1,133,190.98

- 39.21

125,224.56 160,449.56

269,790.29 291,534.73I

580,147.73 317,407.83

550,518.41 335,321.32

43,698.79 333,831.30

449,596.52

452.911.14

7.159.554.90

Aweke Gebreselassie & Co.

Authorized Certified Public Auditors

13. REVOLVING FUND-

2012

Opening balance 1,449,845.20 1,469,514.76

Add: Current year collection from CB's - 16,730.44Prioryear adjustment - 3,600.00

Less:Currentyear payment - (40,000.00)

I1.449.845.20 1.449.845.20

14 GENERAL FUND

Beginning general fund balance 2,782,998.25 2,303,204.22

Fund transfer from value chain promotion(ICCO/FCE) - 282,715.10

Water can - 3,561.05Becho IIU wash 7,191.62

Promotion anti harmful traditional practice 126,012.67

Weserbi School wash 39.21

2,916,241.7 2,589,480.37I

Current vear adiustments

Bank interest income 553,608.28 344,499.69

Subscription fee 1,290.00 1,280.00

Other income 7,784.00 4,795.25

Less: current year collection from CB's - (16,730.44)

Currentyear paymentfor CB's - 40,000.00-Expensefrom General fund during the year (161,798.36) (176,726.6)

Prioryear adjustment - (3.600.00)

3.317.125.67 2.782.998.25

15. DONATION INCOME

Water Can - Becho Iliu WASH

WSM -Food security

CAFOD/ integrated Water supply &sanitation (WASH) Project

ICCO -Zero grazing

ICCO-DRM

ICCO /FC- Value Chain III

CCFD-Integrated WASH

Water Can Canada school -WASH

Elisabeth and Amelie-/Belgium-Wesebi School WASH

ICCO-ICT project

CCFD Livelihood project

Water can Community WASH

Elisabeth and Amelie-/Belgium-Community WASH

WSM-School WASH

16. OTHER INCOME

Subscript fee

Other income

Bank interest income

-

Aweke Gebreselassie & Co.Authorized Certified Public Auditors

1,290.00

7,784.00

553.608.28

1,280.00

4,795.28

344.499.69

562.682.28 350.574.97

9

1,186,692.11

766,267.73 703,786.57\

- 1,198,842.15

3,989,970.16 2,316,180.00- 1,305,278.27

1,239,629.57 1,837,726.55

1,704,003.00 1,596,336.96

2,411,177.64 520,506.77- 182,074.76

626,751.00 921,086.00

733,329.86 663,316.23

468,296.92

385,132.05 361,31"(.84

452.911.14 -

12.777.469.07 12.793.144.21

17 DIRECT PROJECT EXPENSES

Water well drilling constructionConstruction of washing basins &shower rooms for

Communities and latrines with hand washing &urinalsHealth ,hygiene &sanitation with education for communities &

Schools ,capacity building training for committees &techniciansProvision of hand pump spare parts, water tank& accessoriesTraining of communities, line staffs, FMOS, unions on different

project topicsOrganize training and support self help group (SHG)Provision of vegetable seeds, family drip irrigation kits. Fodderplans for livestock,& particular training on feed preparationEnvironmental protection raising and distribution of

multipurpose Trees & fruits tree seedlingsPurchase & distribution of small ruminatesand heifer to

target communitiesInvestment at FMOs/Union level (construction, furniture,

Equipment an matching fund provision)Promotion of household level bio gas technologyRewarding best performing farmers cooperativesSupport farmers in production of market driven products &

Dissemination of informationCash for work & restocking (provision of heifer, small

Ruminant, potato)Development of water source (develop new springs &educationOn water management)salary of direct project personnelConstruction of irrigation/river crossing structurePilot horticultural & beekeeping

18. FIXEDASSETS

AIIotorcyclesSony digital photo cameraOffice furniture and equipment

Computer, printers and other related materials 16.328.98

16.338.98

Aweke Gebreselassie & Co.

Authorized Certified Public Auditors

176,032.06

4,200.0020,476.72

112.955.50

313.664.28

10

2,893,659.90 1,973,495.00

I873,829.99 551,619.75

324,268.37 387,899.4723,214.00 22,810.00

731,778.27 448,617.18101,176.77 69,940.36

160,545.51 289,994.41

290,327.82 138,588.61

1,352,726.53 349,929.77

- 1,143,696.98413,248.25

54,222.05

97,974.94 97,472.70

1,776,261.00

177,628.52450,444.45 423,880.40

- 156,638.40126.659.40 -

7.894.076.25 8.008.472.55

19. CONCLUSION

19.1 We wish to express our appreciationand gratitude for the co-operationand

assistance extended to us by the management and staff members of

Associationduring the course of the audit.

19.2 Should there be any information required in respect of these accounts and

report, we.s~all be pleasedto supply it.

:;;.--.

AWEKE GEBRE SEL'ASSIE AND COMPANYAUTHORIZED CERTIFIED PUBLIC AUDITORSFebruary 08,2014Addis Ababa

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Aweke Gebreselassie & Co.Authorized Certified Public Auditors 11

"m4' 111l p'l\lb he; h'fI'})'m. -: ri'tl4' ~ta1' (}Ci:4,~Y: r~.£t l' Y:CJ!:1'r"lielJ'i "'nile

AWEKE GEBRE SELASSIE & COMPANY, AUTHORIZED CERTIFIED PUBLIC AUDITORSLimited Partnership

PO.Box 3323Addis Ababa

Ethiopia

E-mail: agselassie@ethionet.etTel.Fax

251011 46554542510114655400251011 66148292510116182530

February08,2014

Ref. OSRA. 1.2014 \

The General ManagerOromo Self Reliance Association

Addis Ababa

Subject: MANAGEMENT LETTER

Dear Sir,

In accordance with our appointment, we have audited the books and records of Oromo

Self Reliance Association for the year ended 3151December, 2013.

During an audit of the financial statements for the year ended 3151December. 2013, we\

observed the following matters we believe should be brought to your attention. Werecommend the management to take appropriate actions to correct them.

1. CASH AND BANK-BIRR 13.259.370.03

Although requested in writing Awash InternationalBank S.C. has not confirmed the

correctnessof the bank balanceswith them to the date of this report.

2. RECEIVABLE FROM CEREAL BANK ASSOCIATION -BIRR 173.010.80

- Account receivables included long outstanding balances amounting to Birr

13,010.80 due from two Cereal Bank Association. Efforts must be made to collect

these two balances, failing that, they must be provided for to these accounts.

3. SUNDARY DEBTORS-BIRR 835.718.95

As reported last year, the cash misappropriatedby Wase Bulcha amounting to Birr

116,686.00is an old balance.We recommendthat efforts to be made to collect this

old outstandingbalance.

Authorized by the Office of the Federal Auditor General of the Ethiopian Government

4. ACCOUNTS PAYABLE-375.977.56

Accounts payable includes Birr 172,069.49 payable to Wassassa Microfinance

Institution for guarantee payable deposited by CIDR which remained'unpaid for \

more that five years. We recommend that this old outstanding balance should be

investigated and adjusted.

5. DONATIONINCOME-BIRR 12.777.469.07

Although requested in writing the following donors have not confirmed the

correctness of the funds they transferred to OSRA.

WSMICCOCCFD

1,219,178.873,989,970.162.427.332.80

7.636.481.83

Yours fjMr~I ~ .Aweke~~~Iassle

General Manager

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