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Financial Statements of Projects Funded By the International BankFor Reconstruction and Development - Grant #TF017510(Municipal Services Emergency Project)
And Auditor's Report
Council for Development and ReconstructionYear Ended December 31, 2017
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Contents
Page
Independent Auditor's Report 3
Statement of Special Account of Projects Funded by the International Bank For Reconstruction 4and Development - Grant #TF017510 (Municipal Services Emergency Project)
Statement of Project Expenditures of Projects Funded by the International Bank For 5Reconstruction and Development -Grant#TF017510 (Municipal Services Emergency Project,
Statement of Expenditures of Projects Funded by the International Bank For Reconstruction 6and Development -Grant#TF017510 (Municipal Services Emergency Project)
Notes to the Financial Statements/ Project Expenditures 7-S
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INDEPENDENT AUDITOR'S REPORT
PresidentCouncil for Development and ReconstructionWorld Bank Grant No.TF017510Municipal Services Emergency ProjectBeirut, Lebanon
We have audited the accompanying financial statements comprising of the statement of Special Account,Project Expenditures, and Statement of Expenditures of Project Funded by the International Bank forReconstruction & Development, Grant #TF017510 for the year ending and cumulatively as at December31, 2017. The Project financial statements are the responsibility of the Council for Development andReconstruction's management. Our responsibility is to express an opinion on these financial statementsbased on our audit.
We have also audited compliance with the laws, regulations, guidelines and provisions governed by theGrant Agreement for the year ended December 31, 2017,
We conducted our audits in accordance with International Standards on Auditing. Those Standardsrequire that we plan and perform the audits to obtain reasonable assurance about whether the financialstatements are free of material misstatement and about whether the "Municipal Services EmergencyProject" has complied with the laws, regulations, guidelines and provisions governed by the GrantAgreement. 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, aswell as evaluating the overall financial statement presentation. We believe that our audits provide areasonable basis for our opinion.
In our opinion:
(a) The accompanying Financial Statements present fairly, in all material respects, the cash receipts andpayments of the Municipal Services Emergency Project for the year ending December 31, 2017 andshowing cumulative balances as at December 31, 2017 in accordance with the International PublicSector Accounting Standards(IPSAS), under the cash basis of accounting;
(b) Internal control over financial reporting involved in the preparation of replenishments, directpayments, payments through special commitments, and reimbursements i.e. expenditures reimbursedon the basis of Statements of Expenditures can be relied upon to support the related withdrawals as ofDecember 31, 2017;
(c) The project was in all material respects in compliance with the laws, regulations, guidelines andprovisions governed by the Grant agreement.
June 28, 2018MENAF
Jihad AnouttManaging Partner
Council for Development and ReconstructionMunicipal Services Emergency Project - Grant TF017510Financial Statements31 December 2017
Statement of Special Account (TF017510)
Note USD
Balance as ofJanuary 1, 2017 750,954
Add:World Bank replenishments -
Deduct:
Difference in Foreign Exchange
Payments for project expenditures funded by the Grant
Goods,Works, Non Cons Ser&ConsSerTr&IncOC 3 (525,431)
Balance December 31,2017 225,523
See accompanying notes to the financial statements.
Council for Development and ReconstructionMunicipal Services Emergency Project - Grant TFO17510Financial Statements31 December 2017
Statement of Project Expenditures
Note USD
Goods,Works, Non Cons Ser&ConsSerTr&IncOC 3 1,710,249
1,710,249
See accompanying notes to the financial statements.
Council for Development and ReconstructionMuncipal Services Emergency Project - Grant TF017510Fnancial Statements31 December 2017
Statement of Expenditures
Note USD
Goods,Works, Non Cons Ser&ConsSerTr&IncOC 4 370,836
370,836
See accompanying notes to the financial statements.
Council for Development and ReconstructionMunicipal Services Emergency Project - Grant TFOl 7510Financial Statements31 December 2017
Notes to the Financial Statements
1. Project Background
A Grant #TF017510 (Municipal Services Emergency Project) for the amount of USD 10,000,000 wassigned on September 12, 2014 between the International Bank for Reconstruction and Development andthe Lebanese Republic (the borrower) to address urgent community priorities in selected municipalservices, targeting areas most affected by the influx of Syrian refugees. The project consists of thefollowing parts:
Part I: Emergency Response: Supporting high priority municipal services and initiatives that promotesocial interaction and collaboration in the Participating Unions, including.
a- Service Delivery Carrying out sub-projects to improve service delivery in the ParticipatingUnions, including inter alia, in the areas of water supply and wastewater, solid wastemanagement, roads improvement, and recreational facilities and community centers.
b- Community Activities: Enhancing social cohesion by facilitating interaction andcollaboration among local communities and refugees, including, inter alia, establishment ofsport teams/leagues, study groups or courses, play groups, skills exchange, organization ofawareness campaigns and collective action.
Part II: Rehabilitation of Critical Infrastructure: Carrying out sub-projects to rehabilitate and/or developcritical infrastructure to increase self-reliance of communities, including inter alia; water supply, solidwaste management, roads improvement, water and sanitation, recreational facilities and communityinfrastructure.
Part III: Project Implementation Support: Strengthening the capacity of the PMU in the management ofthe project, including coordination, reporting, financial management, procurement, social andenvironmental safeguards; and supporting activities conductive to the decentralized decision making andconsultative processes for sub-project identification.
The table below sets forth categories of items to be financed out of the proceeds of the grant underCDR's management (USD 10,000,000) and the allocation of the amounts of the grant to each category:
Category USD
Works, Goods and non-consulting Consultants' service and training services,Consultants' services and training and incremental operating Costs 10,000,000Front-end Fee
10,000,000
The closing date for this grant was December 30, 2017 extended to June 30, 2018.
Council for Development and ReconstructionMunicipal Services Emergency Project - Grant TFOI.510Financial Statements31 December 2017
2. Summary of Significant Accounting Policies
The accompanying statement of special account, project expenditures and statement of expenditures areprepared on the cash basis of accounting. On this basis, disbursements from grant are recognized whenreceived and expenses are recognized when paid rather than when incurred.
3. Details of Expenditures
Expenditures paid from Municipal Services Emergency ProjectSpecial account and direct payments paidduring the year 2017 are detailed as follows:
Amountfinanced
Contractor's Name Description from loanproceeds
(100%)Goods,Works, Non Cons Ser&ConsSerTr&IncOC
Adnan khanfour Adnan khanfour 55,049
Al Bonyan Co for Eng Imp of civil works in geographical areas Bonyan 21,384
Arkoub Sons collective org 1 B 1- B Mobile Dispensary 28,000Supply and instalation of solar street lighting
ASACO General trade and contracting systems in the union of municipalities 491,160
Autostarts Autostarts 15,270
Bassoul and HeneAne 2 Bassoul and Heneine 2 3,810BouChalhoub Industrial and Commercial Advance Payment for upgrading of solid wasteEstablishment management 580,258
Cultural and social cohesion 1 B adopting a solid waste manag plan 8,000
ELARD ESIA byrehrashya ',200
Fantascopeproduction Production of doc film Fantascope 30,800
Geti Sup on Coll and Treatment of solid waste in tyre 28,064
Halba women collective and env scouts 1-B Halba women collective and env scouts i-B 27,790Imp of civil works in geographical areas
Hanmoud Est for Trading and Contracting Hammoud 35,556
Heart Bloom for thedisabled org 1 B silver and gold after burnng and fatigue 8,000
Hydra Engineering Group Sup on const of solide waste Treat Plant in Bireh 13,500
Joseph Ghaouch loseph Ghaouch 4,24`
Lebanese cul dcv cent org + Baalbkcul club IB human res dev youth club -,963
Michel Labban Michel Labban 33,867
Council for Development and ReconstructionMunicipal Services Emergency Project - Grant TF017510Financial Statements31 December 2017
Amountfinanced
Contractor's Name Description from loanproceeds
(100%)Preparation of Rapid social and conflict
Mohamad Arab assessment report and Baseline indicators report 17,400
NidalChehayeb NidalChchaXeb 45,410
RAFCO Water Filters to scholl in sour 27,000
rashaya Child-Care org 1-BTOGETHER Through a partership 8,950
Social Dev Org 1 B supply of emergency vehicule ambulance 32,000
SOMECO 1 B supply of emergency vehicule ambulance 5,200
Sonia der alexanian Sonia der alexanian 16,023
Together for Development I B creating culawarnessreg sorting and rec garb 8,000
UNESCO Beirut Office First pymnt to UNESCO 96,000
Welfare and dev org I B Teach me before you feed me 8,000
Women's social dev org I B Dev culeduprog for syr mgrants 7,888
YWCA 1 B -B Nurse Aid Training 38,460
Amount paid from special account525,431
Direct Payment 1,184,818
Total1,710,249
4. S.O.E Withdrawals During the Year 2017
Withdrawal Goods,Works, Non Cons Ser&ConsSerTr&IncOC
USDCumulative SOE 1/1/2017 584,432
17 111,15518 82,22919 5,62621 55,814
11,20023 8,00027 84,24831 12,564
Total S.O.E withdrawals 2017 370,836Cumulative S.O.E withdrawals 31.12.2017 955,268
Councl for Development and ReconstructonMunicipal Services Emergency Project - Grant TF017510Financial Statements31 December 2017
5. Cumulative Statement of Special Account
The cumulative drawings and payments made in this account since inception up to December 31, 2017 aredetailed as follows:
USD
World Bank initial deposit 1,500,000World Bank replenishments 734,860Increase of the special account
Interest earned
2,234,860
Payments for project expenditures funded by the Loan:
Foreign exchange Difference (21,454)Works (1,987,833)
(2,009,337)Balance -- December 31, 2017 225,523
Council for Development and ReconstructonMunicipal Services Emergency Project - Grant TFOl'510Financial Statements31 December 2017
6. Cumulative Statement of Project Expenditures
USD
Goods,Works, Non Cons Ser&ConsSerTr&IncOC 4,905,411
4,905,411