Agro Processing, & Productmvty
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tI AGRO PROCESSING, Public Disclosure Authorized & PRODUCTMVTY ENHANCEMENT AND LIVELIHOOD SUPPORT PROJECT Public Disclosure Authorized Annual Report and Consolidated Audited Financial Statements For the Year Ended December 31, 2018 Public Disclosure Authorized Public Disclosure Authorized Prepare(d hn accordance with the Cash Ba~s of Accounting Method of the International Public Sector Accounting Standards AGRO-PROCESSING, PRODUCTIVITY ENHANCEMENT AND LIVELIHOOD IMPROVEMENT SUPPORT (APPEALS) PROJECT IDA Cr. No. 59930 - UNI CONSOLIDATED AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018 CONTENTS PAGE(5 (, v) Project Information and performance Statement of Accounting Officer and project Coordinators' responsibilities 2 Statement of Significant Accounting Policies 4-b Report of the independent auditors Statements of Sources and Uses of Funds 6 Summary of Activities in the Designated Account Balance Sheet 8 SOE/Withdrawal Applications Statement 9 11 Notes to the Financial Statements 10 List of Fixed Assets 12 AGRO-PROCESSING, PRODUCTIVITY ENHANCEMENT AND LIVELIHOOD IMPROVEMENT SUPPORT (APPEALS) PROJECT IDA Cr. No. 59930 - UNI CONSOLIDATED AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018 PROJECT INFORMATION AND PERFORMANCE INSTITUTIONAL DETAILS/INFORMATION: Implementing Agency: Federal Ministry of Agriculture and Rural Development Status: Active Location: National Coordinating Office ABUJA, with other State Offices at CROSS-RIVER, FNUGU, KADUNA, KANO, KOGI and LAGOS. Account Names: S/N ACCOUNT NAME BANK NAME ACCOUNT NUMBER 1 SPECIAL ACCOUNT (USD)$ CENTRAL BANK OF NIGERIA 70004115 __ __- - -(CBN) 2 DRAWDOWN ACCOUNT (N) CENTRAL BANK OF NIGERIA 0020103261164 (CBN) 3 COUNTERPART ACCOUNT (N) CENTRAL BANK OF NIGERIA 0020103201015 (CBN) CROSS RIVER STATE COORDINATING OFFICE- ACCOUNTS DETAILS ACCOUNT S/NO ACCOUNT NAME BANK NUMBER 1 CR-APPEALS DESIGNATED (USD) ZENITH BANK PLC 5070946737 2 CR-APPEALS DRAWDOWN (NGN) ZENITH BANK PLC 1016003317 3 CR-APPEALS DESIGNATED INTEREST (USD) ZENITH BANK PLC 5070946744 4 CR-APPEALS COUNTERPART (NGN) ZENITH BANK PLC 1015000 0U 5 CR-APPEALS INTEREST ON NAIRA ACCOUNT ZENITH BANK PLC 1016000 3I 1(i) KADUNA STATE COORDINATING OFFICE - ACCOUNT DETAILS ACCOUNT S/N ACCOUNT NAME BANK NAME NUMBER KAD. STATE APPEALS PROJ-DESIGNATED A/C - Zenith Bank 1 USD PLC. 5070950536 Zenith Bank 2 KAD. STATE APPEALS PROJ-INTREST A/C - USD PLC. 5070950543 KAD. STATE APPEALS PROJ-DRAWDOWN A/C - Zenith Bank 3 NAIRA PLC. 1016013321 4 DRAWDOWN ACCOUNT 2 (NAIRA) - UBA PLC. 1021644404 5 INTEREST ACCOUNT (NAIRA) UBA PLC. 1021644428 6 COUNTERPART ACCOUNT UBA PLC. 1021644435 KANO STATE COORDINATING OFFICE - ACCOUNT DETAILS: Nil KOGI STATE COORDINATING OFFICE - ACCOUNT DETAILS S/N ACCOUNT NAME BANK NAME ACCOUNT NUMBER 1. KOGI ST. APPEALS IDA DESIGNATED A/C (USD) ZENI1H BAN PLC 5070949972 2. KOGI ST. APP. COUNTERPART FUND A/C (NGR) ZENITH BANK PIL( 1016011619 3 KOGI ST. APP. COUNTERPART FUND INT. A/C /ENI_1H BAN P_ 1016011554 _ (NGR) 4. KOGI STATE APPEALS DRAWDOWN A/C (NGR) Z-N 1 ANK f 1016011578 5. KOGI ST. APPEALS DESIGNATED INT. A/C (USD) 5070951131 STATE COORDINATING OFFICE - LAGOS S/N ACCOUNT NAME BANK NAME ACCOUNT NUMBER 1 LASG APPEALS PROJECT -DESIGNATED A/C (USD) ZENH H BANK 1 ( 2 LASGI APPEALS PROJECT INT, A/C (USD) /F NII i BA NK I'; 3 LAS() APPEALS PROJEC I RAWDLOWN A/C---N) TENI iLH B AHN.KLP i 4 IAS(J APPE ALS PROJECT INT._A/C (N) /[N I H BAHK P1 ( - i(N) 5 LASG APPEALS PROJECT COUNTERPART FUND A/C Z[NlE BANK P! ( ADDRESS OF INDEPENDENT AUDITORS: Itodo Okpanachi & Co. (Chartered Accountants) 42, MKO Abiola Way, Garki, Area 10, Abuja, Nigeria. MEMBERS OF THE NATIONAL PROJECT COORDINATING UNIT: NATIONAL COORDINATING OFFICE (NCO) Dr. Amin M. Babandi National Project Coordinator Dr. Salisu Garba Project Operations Officer Tijjani A. Ajayi National Project Accountant MR. Adekunle Adesoye National Monitoring and Evaluation Officer ENGR. Tijani Olukayode National Procurement Specialist Mrs. Heather Akanni National Women and Youth/Livelihood Specialist BACKGROUND INFORMATION ON THE PROJECT Source of Financing: International Development Association (IDA) Size of Loan: US$ 200 MILLION Effective Date: 24TH May, 2018 Closing Date: 3 0 th September, 2023 PROJECT OBJECTIVES Agro-processing, Productivity Enhancement and Livelihood-Improvement Support Project (APPEALS) is a project developed by the Federal ministry of Agriculture and rural development !) collaboration with the World Bank and other stake holders. The objective of the project k to enhance agricultural productivity of small and medium scale farmers and improve value addition along priority value chains in the participating states. The Project Development Objectives (PDO) will be achieved through supporting farmers' productivity and their linkage to markets, facilitating consolidation of agricultural products and cottage processing, facilitating farmers and sml a medium businesses' clustering and connection to infrastructure network and busines >ervice. providing technical assistance and institutional support both to beneficiaries, federal aid stit( governments in value chain development. The participating states include: Cross-River, Enugu, Kaduna, Kano, Kogi and Lagos. The value chains are: Rice, Wheat, Cocoa, Cashew, Ginger, Tomatoes, Poultry, Dairy, Maize, and Aquaculture. These value chains are further grouped into Food Security, Export Potentials, and Livelihood. The number of project beneficiaries is estimated at 60,000 individuals' i.e 10,000 beneficiaries per state, and 300,000 farm household members as indirect beneficiaries. The Project also has a dedicated sub-component to benefit women and youth and People with disabilities. (iv) PROJECT COSTS By components and category of expenditures as per the Financing agreements and PAD Components Component Name Cost (USL) MiHoins; Production and Productivity Enhancement 40.00 Primary processing, Value Addition, Post-Harvest 92 00 Management and Women & Youth Empowerment Infrastructure Support to Agribusiness Clusters 40 00 Technical Assistance, Knowledge Management and 10 Communication Project Management and Coordination 1 5 TOTAL 000 Amount of the Credit Percentage of Expenditures Category Allocated to be Financed (expressed in SDR) 1) Goods, works, non- 75,800,000 100 % consulting services, operating costs and Training under the project 2) Matching Grants under 18,400,000 100% of amounts disbursed Part A of the Project 3) Start-up Grants Part B of 53,000,000 100% of amounts disbursed the Project TOTAL AMOUNT 147,200,000 100% of amounts disbursed Mv AGRO-PROCESSING, PRODUCTIVITY ENHANCEMENT AND LIVELIHOOD IMPROVEMENT SUPPORT (APPEALS) PROJECT IDA Cr. No. 59930 - UNI CONSOLIDATED AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018 STATEMENT OF ACCOUNTING OFFICER AND PROJECT COORDINATORS' RESPONSIBILITIES The accompanying Financial statements comprising of Statement of Sources and Uses of Funds, Balance sheet, Statement of Withdrawals (SOE'S), Designated Account Activity Statements an d related disclosure Notes (further referred as to "Project's Financial Statements"), of the Mird'tr, of Agriculture and Rural Development of the Federal Republic of Nigeria ("the Ministry"), Agro Processing, Productivity Enhancement and Livelihood Improvement Support Project" (further referred to as "the Project"), financed under International Development Bank Credit (IDA) numbered 59930 Cr ("Original loan") as at and for the period from 24th May to 31 December 2018 included on pages 6 to 12, are the responsibility of, and have been approved by the project's management. The accompanying project's financial statements have been compiled by the project', management, for the purposes of reporting to the Ministry and the International Developnet Association, in conformity with the related requirements of the World Bank's financial reporting guidelines and in compliance with the relevant provisions set out in the Financing Ageement numbered 59930 Cr dated 24th May, 2018. Project's management, in furtherance of the integrity and objectivity of the project's filnarn. X statements, has developed and maintained an internal control structure, including the appropriat( control environment, accounting systems and control procedures. Project's management believe that internal controls provide assurance that financial records are reliable and form a proper ba,i, for the preparation of financial statements, and that assets are properly accounted for 1nd safeguarded. There are, however, inherent limitations that should be recognized in con'ider . the assurances provided by the internal control structure. Itodo Okpanachi & Co, Independent Auditors, have been engaged to audit these project's financial statements in accordance with the International Standards on Auditing. Their report is included or pages 4 and 5. 2 AGRO-PROCESSING, PRODUCTIVITY ENHANCEMENT AND LIVELIHOOD IMPROVEMENT SUPPORT (APPEALS) PROJECT IDA Cr. NO. 59930 - UNI CONSOLIDATED AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER, 2018 STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES The following summary of significant accounting policies is presented to assist in Lnderstanding the accompanying financial statements. The financial statements and accompanying notes are representations of the project's management. These accounting policies confon t. International Public Sector Accounting Standards and have been consistently applied in the presentation of the accompanying financial statements. 1. BASIS OF ACCOUNTING The financial statements