AUDIT OF THE FINANCIAL STATEMENT OF THE "EMERGENCY NATIONAL POVERTY TARGETING PROGRAM (PROJECT)" ENPTP

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1 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized AUDIT OF THE FIACIAL STATEMET OF THE "EMERGECY ATIOAL POVERTY TARGETIG PROGRAM (PROJECT)" EPTP COUCIL OF MIISTERS BEIRUT - REPUBLIC OF LEBAO FOR THE YEAR EDED DECEMBER Public Disclosure Authorized TALAL ABU-GHAZALEH & CO MEMBER OF TALAL ABU-GHAZALEH ORGAIZATIO

2 Index Contents: Page Independent Auditors Report I Project Statement of Cash Receipts and Payments 2 otes to the Project Statement of Cash Receipts and Payments 3

3 o ~ -~i~)jw)y ~Y~-)?ii~iTAGIAudbIs Talal Abu-Ghazaleh & Co TAIIdlr Global Company for Audi ing and Accounting a 3 Lrt 6 ;--S% -Ul Societe Cvile (RC 67) u L (TV) a S Certified Public Accountants Independent Auditors Report To Council of Ministers Emergency ational Poverty Targeting Program Project (EPTP) Beirut - Republic of Lebanon We have audited the accompanying financial statement compromising of the Statement of Cash Receipts and Payments by category of Emergency ational Poverty Targeting Program (EPTP) for the year ended December These financial statements are the responsibility of the Fiduciary Operations Team and our opinion is to express an opinion on those financial statements We have also audited compliance with the laws regulations guidelines and provisions governed by the Grant Agreement for the period January till December We conducted our audit in accordance with International Standards on Auditing (ISA) Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement and about whether the First Municipal Infrastructure Project has complied with laws regulations guidelines and provisions governed by the Grant Agreement An audit includes examining on a test basis evidence supporting the amounts and disclosures in the financial statement An audit also includes assessing the accounting principles used as well as evaluating the overall statement presentation We believe that our audit provides a reasonable basis for our opinion In our Opinion: a The project Financial Statement (PFS) present fairly in all material respects the cash receipts and payments of the Emergency ational Poverty Targeting Program (EPTP)for the period from January till December in accordance with the International Public Sector Accounting Standards (IPSAS) under the cash basis of accounting; b The internal control over financial reporting involved in the preparation of replenishments direct payments payments through special commitments and reimbursements ie expenditures reimbursed on the basis of statements of Expenditures can be relied upon to support the related withdrawals for the year ended December ; c The project was in all material respects in compliance with the laws regulations guidelines and provisions governed by the Grant Agreement d The expenditures submitted are eligible and they are adequately reflected on the project financial statement e The DA statement adequately reflects the flow of funds during the period audited and those funds have been only for the purpose intended under the project Waref M Knmayba / (License # 1927) /42 Beirut on June Talal A4u-Ghazaleh & Co Sannyeh-Al Mansour Bldg FORU - 6-AL:I Tel: F R1ns + I Vet Y :&L*U Fax: tagicom + +ill I Vot YYY :0sSU POBox: Beirut Lebanon kii1l j Jl A:L! v -Al :y la

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5 ote I; Project Background: Council of Ministers Ememency ational Poverty Tareetina Program Proiect For the year ended December (Amounts are expressed in US Dollar) The Emergency ational Poverty targeting Program (EPTP) supported by a US$ 82 Million grant from the Trust fund for Lebanon (TFL) became effective on August The Emergency PTP project consists of two technical components and a fiduciary operations component Specifically the components are: (i) Administration of the PTP (ii) Provision of Social Assistance and (iii) Fiduciary Operations team Component 1: Administration of the ational Poverty Targeting Program (US$ 1118 Million total cost of which US$ 389 Million financed from TFL and US$ 69 Million from the GOL) This components objective is to ensure an effective and efficient administration and implementation of the PTP through its structures in the MOSA and the PCM so that it can expand the coverage and enhance the Social Assistance to extremely poor Lebanese households and those affected by the Syrian crisis This component will also improve the efficiency of the PTP Component 2: Provision of Social Assistance (US$ 202 Million total cost of which US$ 376 Million financed from TFL; US$ 3 Million from the UHCR; US$ 78 Million from the GOL) This component provides a package of Social Assistance benefits to extremely poor Lebanese households and those affected by the Syrian Crisis for a three year period The package of Assistance consists of- (i) comprehensive health coverage in public and private hospitals through the waiver of percent copayments for hospitalization; (ii) comprehensive primary health care coverage at Ministry of Public Health (MOPH) primary health care facilities or at the MOSA Social Development Centers; (iii) coverage of chronic disease prescription medications; (iv) registration fee waivers and free books for students in primary and secondary public schools (v) basic food needs through the e-card food voucher program Component 3: Fiduciary Operations Team (FOT) (US$ 055 Million total cost financed from TFL) The Fiduciary Operations Team (FOT) will be responsible for implementation of the procurement and financial functions of the project working closely with the teams in MOSA and the PCM who are implementing the program activities The FOT will play two key roles in the project: (i) managing the procurement process through the various stages for all contracts (goods consulting services and operating costs) as well as updating and implementing the procurement plan; and (ii) handling financial management including payments for all contracts financial reporting and ensuring external audits are undertaken in compliance with requirements The FOT will be composed of (i) Procurement Specialist (ii) Financial Management Specialist (iii) Procurement assistant and (iv) an Internal Audit

6 ote 2: Designated Account Reconciliation Statement for the period ended 31/12/ Total amount advanced by the World Bank USD Less: Total amount recovered by the World Bank USD - 3 Outstanding amount advanced to DA (subtract 1-2) USD Amount in DA as per attached bank statement (dated: 31/12/2017) USD Amount claimed in attached application USD - 6 Amount claimed in previous application but not yet credited to DA as per attached Bank statement Application o Amount Total of pervious application not yet credit USD - 7 Amount withdrawn from DA claimed for replenishment USD Total advance documented (Add: ) USD Explanation of any difference amounts in lines 3 and 8 USD - 10 Amount in DA as per books USD Closing cash balance as per books USD

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