Financial and System's Compliance Auditing from 1St February 2019 To

Financial and System’s compliance auditing from 1st February 2019 to 31st December 2019

Final Finance Audit Report

Project: Reducing and Mitigating Gender Based Violence in Athooch County, Bor North, Jonglei State.

Programme: Lifesaving Protection and Emergency Response Project"

Project Locations: Lilir Boma, Akuai-Deng, Burakok, Dungaal and Mathiang Bomas Jalle Payam.

County: Athooch County, Bor North,

State: Jonglei State.

Country: South Sudan

Submitted on the 5th February 2020

Submitted by J. B. Rajib R Mousour Chartered Accountant

Table of Contents

1. Descriptions Page Ref. 2. Transmittal Letter 3. Executive Summary 01-04 4. Independent Audit Opinion 05 5. Fund Accountability Statement and Notes to Account

CHARTERED ACCOUNTANTS 2

2nd Floor Arua park, Kampala Uganda P.O. Box: 231 Tel: +256778 4247177 Fax: 977-1-424497178 E-mail: [email protected] E-mail: [email protected] Date: 5th February 2020

Ms. Mary Gideon John, Country Director, CC: Daniel Jok,CEO Save the Women and Girls in Africa, Juba, South Sudan.

Ref: Transmittal Letter

Sub: Auditor's Report of Project: Reducing and mitigating Gender Based Violence (GBV) in Athooch County

Dear Madam,

We are pleased to inform you that we have completed the audit of the project’s financial and system compliance for Save the Women and Girls in Africa, South Sudan Office for the project on Reducing and mitigating Gender Based Violence in Athooch County, Jonglei State which was implemented by Save the Women and Girls in Africa and for the above said project covering the period from 1st February 2019 to 31st December 2019. We have the pleasure in submitting four hard copies with one soft copy of Independent Auditor's Report.

This report presents results of our financial audit of aforesaid project funded by Basic Needs Foundation for the period 1st February 2019 to 31st December 2019.

We would like to thank you and all personnel of Save the Women and Girls in Africa South Sudan Office for the cooperation extended during the course of audit. Thanking you, Sincerely yours

CA. Prabin D Joshi Audit Consultant Kampala Uganda.

REDUCING AND MITIGATING GENDER BASED VIOLENCE (GBV) IN ATHOOCH COUNTY

Executive Summary

1.0. BACKGROUND

1.1. Introduction and Background

This is final audit report of the BNF Funded project at $ 242,4295 for 11 Months on “Reducing & Mitigating Gender Based Violence (GBV) in Athooch County, Bor North in Jonglei State. The project was implemented from 1st February 2019 to 31st December 2019 and the end of project evaluation is being carried as one of the activities planned at the start of the project.

According to the ToR (Appendix 1), Reducing & Mitigating Gender Based Violence in Athooch County was design as a 11 Months pilot project and was funded by Basic Need Foundation UK. The main focus of BNF UK programme in South Sudan is to contribute to the socio-economic recovery and the rebuilding of South Sudan, enhancement of democratic values, inclusion and participation of women in the economic life as well as in decision-making at all levels.

The Gender Inequality Index for South Sudan is 12.56 (with a maximum of one denoting complete inequality), placing South Sudan at the fourth highest position globally. Gender based violence in South Sudan takes many forms, and includes rape, sexual exploitation, female genital mutilation, sexual assault and abuse, domestic violence, discrimination and denial of human rights. Sexual and gender-based violence has devastating, long-term effects on the lives of victims, their families and communities, and also impedes development progress. Where sexual and gender-based violence persist, women and girls are usually disproportionally affected. Levels of sexual and gender-based violence often rise in crisis and conflict settings, where systems of protection, security and justice break down. During violent conflict, rape is often used as a military tactic to harm, humiliate and shame women and girls in the community.

2.1. AUDIT OBJECTIVES

Main objective of audit is to check project accounts of Save the Women and Girls in Africa South Sudan Office and those relating to projects / programs and administration cost and further testing legitimacy of expenditures leading to auditor's opinion on the project accounts and compliance requirement. Specific objective of the project audit is to come up with auditor's opinions on;

1. whether financial statement presents a true and fair picture of revenue and expenditures with generally accepted accounting principles and Save the Women and Girls in Africa South Sudan Office's financial position, 2. opinion on the legitimacy of expenditures, which is the opinion on compliance, stating whether expenses are legitimate or not. Legitimacy of Expenses is judged in terms of following compliance criteria:

 Expenses fit within authorized budgetary frameworks,  Expenses fit within organization goal stipulated in the general and specific agreements.  Expenses are correctly recorded in the administration.  Expenses are not in conflict with relevant statutory rules and regulations.  Expenses are covered by sound documents or other evidence etc.

2.2 AUDIT SCOPE

The audit includes, but not necessarily be limited to, the following: i Verification Work  Verification of classification and proper recording of expenses and comparison of the financial statements with books of records and other relevant records.  Verification of signature of persons authorized to approve financial transactions etc.  Ensuring that project funds are used exclusively for project expenditures ii. Assessment of Internal Control

 Appraisal of the general internal control system and financial policies and monitoring system, if any, and its status.  Reviewing bank accounts and control over their operation and verification of bank reconciliation statements.  Reviewing impress accounts and advances. A list of outstanding advances will be attached showing names, period of outstanding, purpose, amount, and reason for outstanding and expected subsequent settlement time.  Providing overview of the financial management practices of the organization where necessary.  Suggesting specific areas for improvement on systems, skills, management capacities and compliance of the organizational by-laws, Emergency Response Financial System and other laws of the land for the purpose of recommendation.

iii. Review of Compliance of laws, rules and guidelines

Review of compliance with agreements laws regulation & Emergency Response Financial System to ensure compliance with payment of all taxes and other laws of the land, such as renewal of registration, obtaining RRC Certificate and tax exemption certificate and to ensuring that all instructions of RRC has been followed.

The financial statements are the responsibility of the management of SWAGIA. Our responsibility is to express an opinion on the financial statements as to whether these statements present true and fair view of its operational result and financial position in the given date. 5

We conducted our audit of project accounts in accordance with CPA Standards on Auditing based on the instructions for project accounting including financial guidelines and TOR provided to us and accordingly included such tests on SWAGIA's financial data, records, examination of evidence supporting legitimacy of expenditures, disclosure in financial statement, assessing accounting principles used, significant calculation made as well as evaluating overall presentation of the financial statement in accordance with generally accepted accounting standards, and other general auditing procedures which we consider appropriate in order to satisfy our objectives. This report covers only the financial overview of the project: the BNF Funded project “Reducing & Mitigating Gender Based Violence (GBV) in Athooch County, Bor North in Jonglei State.

2.3. AUDIT RESULTS

a. Opinion on the financial statements

We have not come across any material issues non-consideration of which would result in material misstatement of attached financial statements presented based on books of account maintained by Save the Women and Girls in Africa South Sudan for the said project. Accordingly, we have issued qualified opinion on the financial position as at 31St January 2020 and result of its operation for the period ended on that date. Our audit opinions are given in Page 5.

b. Opinion on internal control system

We have reviewed the internal control system of Save the women and girls in Africa South Sudan Basic Needs funded Project during the course of our audit. We have not come across any significant internal control weakness, which may lead to material misstatement in the financial statement. Considering the size and volume of the operation of Save the Women and Girls in Africa South Sudan, we are of the opinion that the internal control system is considered to be adequate. We have issued separate management letter on the even date of this report.

c. Opinion on compliance

Our test for compliance with Emergency Response Financial System, agreement terms, laws and regulation of sampled transactions and records of Save the Women and Girls in Africa South Sudan indicate that it has generally complied with those provisions of Emergency Response Financial System, agreement terms as well as applicable laws and regulations for the project period.

2.4. ACKNOWLEDGEMENT

We take this opportunity to thank all personnel of Save the Women and Girls in Africa South Sudan for the cooperation extended during the course of our audit

1. Introduction

We have audited attached Fund Accountability Statement of Save the Women and Girls in Africa South Sudan prepared on the basis of fund received and expenditure incurred thereof covering the period from 1st February 2019 to 31st December 2019 for financing activities related to the agreement for the 6

implementation of the Basic Needs Foundation funded project Reducing and mitigating Gender Based Violence in Athooch County, Jonglei State.

2. Management's Responsibility for the financial statements

Management is responsible for fair presentation of these financial statements in accordance with Generally Accepted Accounting Standards (local GMP) 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. Our responsibility is to express an opinion on these financial statements.

3. Scope

We conducted our audit in accordance with Nepal Standards on Auditing. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether financial statements are free of any material misstatement. An audit includes examining, on a test basis, evidence supporting amounts and disclosures in the financial statements. An audit also includes assessing accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion.

4. Opinion

In our opinion, the financial statements read with notes to account present a true and fair view of the financial position of the project as at 1st February 2019 to 31st December 2019 and its operational result for the project period

Partner Place: Juba and Kampala Uganda Date: 31st Jan 2020 Fund Accountability Statement (FAS)

1st February 2019 to 31st December 2019 Amount in USD. 1st February 2019 to 31st December 2019 S.N Particulars Actual Amount Approved Budget RECEIPTS: 1 Emergency Remittance from BNF and 11 contribution from BNF grant $ 242,295 $ 242,295 Total Receipts EXPENDITURES: A 1 Programme Expenses $ 81,795 2 3 4 $ 81,795 5 6 7 8 sub Total (DPC) B Program Support Cost (PSC) 1 Monitoring / Support cost 2 Public relation 3 Government liaison/ Representation $ 14,600 $ 14,600 4 Staffing C Sub Total (PSC) $ 700 1 Indirect Program Support (IPC) $ 12,600 2 Audit and Evaluation $ 17,000 $ 59,300 3 Administration ( Field Office) $ 18,000 4 Vehicle $ 11,000 Administration (Partner NGOs) Sub Total ('PC) Total Disbursements

Excess of Receipts Over Disbursements Notes to Fund Accountability Statement (FAS) 12 Schedule I. 12 Form integral part of this Statement

Balance representative B

Particulars Amount Bank and Cash Accounts Payable to Suppliers 11 $ 6,000 Protect Advances $ 75,000 Accrued Expenses 4 $ 5,600 Total $ 86,600

Bank and Cash Schedule - 1 Remittance from BNF Schedule - 6 S.N Particulars Amount in $. 1 Remittance from BNF Remittance in Feb 2019 $ 58,600 $ 242,295 Remittance in June 2019 $ 62,100 Remittance in Aug 2019 $ 70,000 Remittance in Oct 2019 $ 51,595

Programme schedule 7 S.N Particulars Amount in $. 1. Women and Girls Temporal Space construction and $ 15,000 2. operations $ 12,000 3. Dignity kit $ 6,000 4. Office facility $ 1,400

Support Activity

Total $ 34,400

Child Protection/ Child Centered Spaces (Shelter + Materials + Training Schedule 8 S.N Particulars Amount in $. I CCS (Shelter *Materials + Transportation) $ 5,000 2 CCS Volunteer Training $ 6,000 3 CCS Volunteer Allowance $ 8,000 4 CCS - Snacks for Children $ 1,300 Total $ 20,300

Life Skills Training Support Schedule 9 S.N Particulars Amount in $. 1 Skill training 1,025 Total Total $ 1,025

Schedules Forming Part of the Fund Accountability Statement (FAS) Training: Child Protection / DRR Schedule 10

S.N Particulars Amount in $. 1 Psychosocial Counseling Training $ 3,600 2 Child Protection Training $ 2,500 3 DRR Training (Community based DRR) $ 1,900 4 School Safety Preparedness Training $ 1,800 (materials) Total $ 9,800

Staff Training / Capacity Building Schedule 11 S.N Particulars Amount in $. 1 Child Protection Training $ 3,600 2 EIE / DRR Technical Training $ 2,670 3 Psychosocial Counseling Training and $ 2,600 4 meetings $ 3,800 5 Disaster Training (Essential Humanitarian $ 3,600 Practice /Manage Project in Emergency) Workshop/ Training / Meeting Total $ 16,270

Status CURRENCY BANK Account Number Amount remitted $ 242,295 ECOBANK 0011087702394501 Amount used $ 241,000 ,, ,, Balance $ 1,295 .. ,,

Notes to Fund Accountability Statement (FAS)

Save the Women and Girls in Africa South Sudan been implementing the reducing and mitigation GBV with financial support from Basic Needs Foundation in Athooch County.

Save the Women and Girls in Africa South Sudan has signed Project Agreement with Basic Needs Foundation in January 2019. This project is one of the components of the Project Agreement.

Subsequently, Save the women and Girls in Africa South Sudan has obtained approval from Relief and Rehabilitation commission (RRC) to implement construction work in the affected areas in Jonglei State.

1. Save the Women and Girls in Africa South Sudan has drafted a concept note for the Response to the South Sudan emergency response which has been revised as required to adjust to the needs of the South Sudan Emergency Response Project" covering the period from 1st February 2019 to 31st

December 2019. Receipts of the fund is recognized on cash basis whereas expenditures are booked on cash and accrual basis. 2. SWAGIA has maintained separate books of account for BNF Fund. During the period of 1st February 2019 to 31st December 2019 total fund amounting to $. 242,295 was received in designated project bank account of SWAGIA at Ecobank Juba South Sudan, 3. The Accrued Expenses amounting of USD 1,295 is related to the audit of BNF fund and SWAGIA. 4. SWAGIA staff salary was charged to ER Project based on their time contribution to the project 1st February 2019 to 31st December 2019. 5. SWAGIA has obtained tax exemption certificate from the Government of South Sudan. Accordingly, there is no existing tax liability while preparing the financial statement. Withholding tax as required under Income -Tax Act has been made and deposited to the appropriate revenue authority. 6. Purchase costs of recurring inventory items are expensed off at the time of payment. 7. All VAT has been expensed off

End