FEDERAL MINISTRY OF FINANCENIGERIA

PUBLIC PRIVATE PARTNERSHIP PROJECT(IDA CREDIT NO: P115386)

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED DECEMBER, 31, 2016

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FMF - PUBLIC PRIVATE PARTNERSHIP PROJECT(IDA CREDIT NO: P115386)

CORPORATE INFORMATION

MANAGEMENT TEAM

Shuaibu, Larai Hajara Director, Technical Services

Bello Sutura Aisha Project Co-ordinator

PROJECT OFFICE

Federal Ministry of Finance,

Central Business District,

Abuja, Nigeria

FINANCIER

The World Bank,

International Development Association (IDA)

1818 Street, N. W.,

Washington DC 20433, U.S.A.

AUDITORS

Lekan Salami & Co.

(Chartered Accountants)

3b, Olaide Benson Street,

Maryland, Lagos.

Phone No: 08033291176, 017618201

Email: olalekanaca gmail.com

BANKERS

First Bank of Nigeria Plc

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FMF - PUBLIC PRIVATE PARTNERSHIP PROJECT(IDA CREDIT NO: P115386)AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED DECEMBER 31, 2016

CONTENTS PAGE

Audited Financial Statements

Report of the Auditors 4-5

Statement of Cash Receipts and Payments 6

Statement of Designated Accounts 7

Significant Accounting Policies and Explanatory Notes 8-11

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3b, Olaide Benson Street,Behind 7th Day Adventist Church

Maryland, Lagos.Mobile: +234(0)803-329-1176Office: 01-7634591, 7618201.

e-mail: lekan@dosalbusinessconsultingltd.com

REPORT OF THE AUDITORSTO THE MANAGEMENT OF

FMF - PUBLIC PRIVATE PARTNERSHIP PROJECT (IDA Credit No: P115386)

We have audited the accompanying Financial Statements on page 6 to 7 comprising

Statement of receipts and payments, and additional disclosure notes of the Public Private

Partnership Project for the year ended December 31, 2016.

Respective Responsibilities of the Management and Auditors

The preparation of the financial statements and the maintenance of adequate books of

accounts are the responsibility of the Federal Ministry of Finance Project Implementation

Unit. Our responsibility is to express an opinion thereon based on our audit.

Basis of Opinion

We conducted our audit in accordance with International Standards on Auditing issued by the

International Auditing and Assurance Standards Board of the International Federation of

Accountants. These standards require that we plan and perform the audit to obtain reasonable

assurance about whether the financial statements are free of material misstatement. An audit

includes examining, on a test basis, evidence supporting the amounts and disclosures in the

financial statements. An audit also includes assessing the accounting principles used and

significant estimates made by management as well as evaluating the overall statement

presentation. We believe our audit provides a reasonable basis for our opinion. The Federal

Ministry of Finance Public Private Partnership Project management's policy is to prepare the

accompanying statements on the cash receipts and payments basis in conformity with

International Public Sector Accounting Standards issued by the Public Sector Committee of

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Chartered ~~Aconat&TaPrtioes

3b, Olaide Benson Street,Behind 7th Day Adventist Church

Maryland, Lagos.Mobile: +234(0)803-329-1176Office: 01-7634591, 7618201

e-mail: lekan@dosalbusinessconsultingtd.com

the International Federation of Accountants/International Accounting Standards issued by the

International Accounting Standards Board. On this basis, cash receipts are recognized whenreceived and cash expenditures are recognized when paid rather than when earned orincurred.

Opinion

In our opinion, the financial statements have been prepared in accordance with International

Public Sector Accounting Standards issued by the Public Sector Committee of the

International Federation of Accountants / International Accounting Standards issued by theInternational Accounting Standards Board and presents a true and fair view of the cashreceipts and payments of the project during the year ended December 31, 2016 and of theclosing balances as at that date, in all material respects, expenditures have been applied to thepurposes intended in Loan Agreement number: P115386.

The Statement of Expenditures(SOE) are in agreement with the books of account andadequate supporting documentation have been maintained to support claims to World Bankfor reimbursements of disbursements made and which expenditures are eligible for financingunder the credit agreement.

The Statement of Designated Account of the project on page 7 has been operated inaccordance with the provisions of the Loan agreement and provides a true and fair

presentation of the balances at 3I1t December, 2016.

CHARTERED ACCOUNTANTS 3G/1CAN

0093990

VI

FMF - PUBLIC PRIVATE PARTNERSHIP PROJECT(IDA CREDIT NO: P115386)

STATEMENT OF RECEIPTS AND PAYMENTS

FOR THE YEAR ENDED DECEMBER 31, 2016

Notes 2016 (Naira) 2015 (Naira)

Financing:

Loan from IDA:

SOE Procedure 4 308,150,192.15 337,452,680.69

Other Income 5 2,257,069.50 1,761,936.05

310,407,261.65 339,214,616.74

Project Disbursements:

Capacity Building 6 51,034,382.98 19,719,560.08

PPP Preparation 7 158,543,615.90 127,516,736.98

Project Implementation 8 34,604,903.26 53,488,738.44

Transaction Advisory Services 9 104,798,585.85 37,042,439.00

348,981,487.99 237,767,474.50

Increase/(Decrease in Cash) (38,574,226.34) 101,447,142.24

Exchange Adjustment 359,818,062.69 130,241,962.35

Cash at the beginning 807,905,648.99 576,216,544.40

Cash at the end of the year 2c 1,129,149,485.34 807,905,648.99

} Project Co-ordinator

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FMF - PUBLIC PRIVATE PARTNERSHIP PROJECT(IDA CREDIT NO: P115386)STATEMENT OF DESIGNATED ACCOUNT

FOR THE YEAR ENDED DECEMBER 31, 2016

For the year Ending 31st December, 2016 31st December, 2015

Account No. 2017466491 2017466491First Bank of Nigeria First Bank of Nigeria

Depository Bank Plc Plc

Address 13 Suleiman Barau 13 Suleiman BarauCrescent, Abuja Crescent, Abuja

Related Loan/Credit Credit No. P115386 Credit No. P115386

Currency US$ $ $

Balance b/f January 01 3,839,776.85 3,446,813.87

Add:

World Bank Replenishments through SOE 1,054,357.75 1,705,906.22

Total Interest Earnings (Deposited in the accounts) 87,426.19 -

4,981,560.79 5,152,720.09

Deduct:

Draw Down (3,075,000.00) (1,093,200.00)

Direct Payment for Goods and Services (313,829.39) (219,713.24)

Bank Charges on Inflows (10,038.03) (30.00)

Closing Balance December 23, 2015 1,582,693.37 3,839,776.85

Transfer to Central Bank Treasury Single Account (1,582,693.37) -

Closing Balance December 31 - 3,839,776.85

For the year Ending 31st December, 2016 31st December, 2015

Account 00020076 00020076Central Bank of

Depository Bank Central Bank of Nigeria Nigeria

Address Abuja Abuja

Inflow from First Bank Plc Designated account 1,582,693.37 -

Closing Balance December 31 1,582,693.37 -

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FMF - PUBLIC PRIVATE PARTNERSHIP PROJECT(IDA CREDIT NO: P115386)SIGNIFICANT ACCOUNTING POLICIES AND

EXPLANATORY NOTES FOR THE YEAR ENDED DECEMBER 31, 2016

1. Organization and operations

The Federal Government of Nigeria (FGN) obtained a loan from the International

Development Association in respect of Public Private Partnership Program. The

objective of the Program is to establish effective institutional and technical

mechanisms and instruments for origination and developments of Public Private

Partnership projects.

The Project constitutes the first phase of the Program, and consists of the following

parts:

Part 1: Capacity Building and Regulatory Reform

Part 2: PPP Preparation and Transactional Advisory Support

Part 3: Project Implementation and Monitoring and Evaluation

The Project is managed by the Project Implementation Unit which is housed in the

Federal Ministry of Finance, Abuja. The unit is responsible for preparing Annual

Work plans and Budgets handling day to day administration of procurement, financial

management, environmental and social safeguards management, communication,

monitoring and evaluation of Project activities, and reporting to the Director Technical

Services Department of Federal Ministry of Finance on all matters pertaining to the

implementation of the Project and the use of the proceeds of the Financing.

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2. Significant Accounting Policies

The following are the significant accounting policies adopted by the Project management

in the preparation of its financial statements.

a. Basis of Preparation

The financial statements have been prepared in accordance with Cash Basis IPSAS

Financial Reporting Under The Cash Basis of Accounting.

The accounting policies have been applied consistently throughout the period.

b. Reporting Period

The Reporting period is January to December.

c. Cash

Cash comprises cash on hand, demand deposits and cash equivalents. Demand deposits

and cash equivalents consist of balances with banks and investments in short-term money

market instruments.

Cash included in the statement of cash receipts and payments comprise the

following:

Balances with Banks:

2016 (Naira) 2016 (USD - $) 2015 (Naira) 2015 (USD -

Central Bank of Nigeria Plc:

Designated Accounts (USD) 482,721,477.85 1,582,693.37 764,115,593.15 3,839,776.85

IDA Drawdown Account 646,427,384.18 2,119,434.05 27,817,515.42 139,786.51

US Dollar Interest Account - - 15,971,917.11 80,260.89

Skye Bank Plc 623.31 2.04 623.31 3.13

1,129,149,485.34 3,702,129.46 807,905,648.99 4,059,827.38

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d. Exchange Rate

Transactions in foreign currencies are converted to Naira at the rate of exchange ruling

on the dates of the transactions. Balances in foreign currencies are converted to Naira

at the rates of exchange ruling at the reporting date. Foreign currencies gains or losses

as a result of the conversions are reported under Statement of Receipts and Payments

as foreign exchange adjustments. A closing Exchange rate of Naira305 to US$ I was

used at the date of closing the financial statement.

3. Initial Advance

No initial advance was received during the reporting period as all inflows into the

Designated accounts were through Statement of Expenditure Claims.

4. SOE Procedure

This represents the amount received from World Bank through the use of Statement of

Expenditure (SOE) Procedure. The details of which is shown below:

Replenishment OF Designated Accounts

Training,Workshops

& Study Operating AmountW/D Date Goods Tours Consultancy Expenses Total Disbursed

US$ US$ US$ us $ US$ US$

FMF/P115386/18 10/03/16 - 42,541.02 97,681.79 15,231.09 155,453.90 155,453.90

FMF/P115386/19 10/08/16 - 91,221.20 218,972.03 85,796.55 395,989.78 395,989.78

FMF/P115386/020 31/10/16 - 16,955.17 455,999.96 29,958.94 502,914.07 502,914.07

150,717.39 772,653.78 130,986.58 1,054,357.75 1,054,357.75

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5. Other Income represents income earned on dollar bank balances. Details is as shown

below:

2016 (Naira) 2015 (Naira)

Interest on USD Balances 2,257,069.50 1,761,936.05

2,257,069.50 1,761,936.05

2016 (Naira) 2015 (Naira)

6 Capacity Building

Media and Communications 10,763,777.08 9,387,560.08

Technical Assistance (MDAs) 29,339,714.30 9,900,000.00

Training - MDAs 10,930,891.60 432,000.00

51,034,382.98 19,719,560.08

PPP Preparation

7 Technical Assistance Services (MDAs) 158,543,615.90 127,516,736.98

158,543,615.90 127,516,736.98

8 Project Implementation

Financial & Operating Expenses 18,969,216.26 24,386,475.19

Fuel and Lubricants 1,207,000.00 1,432,000.00

Maintenance Services - General 2,210,375.00 6,676,664.25

Computer Equipment & Software - 5,696,250.00

Local Travel & Transport 852,164.00 3,746,029.00

Salaries 11,366,148.00 11,551,320.00

34,604,903.26 53,488,738.44

9 Transaction Advisory ServicesTransaction Advisory Services 104,798,585.85 37,042,439.00

104,798,585.85 37,042,439.00

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