KANO STATE THIRD FADAMA DEVELOPMENT PROJECTFINANCIAL STATEMENT FOR THE YEAR ENDED

31st DECEMBER 2016

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KANG STATE: T1IRDr-sFADAMA DEVELOPMAENT PROJECTFINA,NCIAL STATEMENT:n FOrHE YEAR ENDED31st DECEMBER 2016

CONTENTS PAGE

Project Information and Professional Advisers

1

Report of Auditors 2

Significant Accounting Policies 3

Income and Exienditure Account 4

Balance Sheet5

Statement of Cash Flow 6

Notes to Fin1DW1 Statement 7-8

KANO STATE THIRD FADAMA DE:vELOfPMiENT PRO.]ECT

PROJE

PRINCIPAL OFFICERS

1. Shuaibu SulJ&Ii - Project Coordinator2. Amninu A. M a;3. Nasiru Sani a danci - Training and Technical Asst. Officer3. Nsir Sa G ,ladncl- Rural Finance Livelihood Officer4. Aisha Larni Muhammed - Community Development Officer5. Rufa'l Halilu - Environmental Officer6Zawal Muham-imied - Project Accountant7.Garba I Bichi - Procurement Officer8. Haiii-na Musa - Project Internal Auditor9. Mustapha Beliu, Ban - Head Project Financial Management Unit

OFFICE ADDRESSKano State Commercial Agricultural Development ProjectKM 9 Hadejia Rloa dKaEno

n State

AUDITORSNamadi Umar & Co(Chartered aPcrcicntaoas)No4 Suit 4 AbiPesa HouseZaria RoadKano.

ANKERSKeystone Bank Pic17/18 Bello R(,' c.idKanc

HEAD OFFICE: ABUA OFFICE:Suite 4 Abinsa House, Ist Floor Amma House,No.4 Zaria Road, Kano. Plot 4293. Pam Street,08050700849, 08023898740 Opposite National Hospital,N%IAMi1ADI, UM1AR & COE SOKOTO OFFICE: Central Business District, Abuja NigeraNo. 13, Abdullahi Fodio Road, e-mail: namadiumar@yahoo co r(Chartered Accountants) Sokoto. 08032190396Sokoto State

REPORT OF AUDITORS TO THE MEMBERS OF THE KANO STATE THIRD FADAMADEVELOPMENT PROJECT

We have audited the accompanying financial statements of Kano State Third FadamaDevelopment Project as at 3Vt1 December, 2016 set out on page 4 to 10 which have beenprepared on the basis of the accounting policies set out on page 3 and other explanatory note onpage 7 to 8.

Respective responsibilities of directors and auditorsIn accordance with the provision of the edict establishing the Project, the project management isresponsible for the preparation and fair presentation of these financial statements. It is ourresponsibility to form an independent opinion based on our audit, on these statements and toreport our opinion to you.

Auditors' ResponsibilitvOur responsibility is to express an opinion on these financial statements based on our audit. Weconducted our audit in accordance with International Standards on Auditing. Those standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance weather the financial statements are free from material misstatement.An audit involves performing procedures to obtain audit evidence about the amount and disclosuresin the financial statements. The procedures selected depend on the auditors' judgment, includingthe assessment of the risks of material misstatement of the financial statements, weather due tofraud or error. In trying to asses these risks, the auditors take into account internal controlrelevance to the entity's preparation and fair presentation of the financial statements in order todesign audit procedures that are appropriate in the circumstance, but not for the purpose ofexpressing an opinion on the effectiveness of the entity's internal control. An audit also includesevaluating the appropriateness of accounting policies used and the reasonableness of accountingestimates made by managemnent., as well as evaluating the overall presentation of the financialstate s men ts

Independent confirmations of completeness of the accounting records were not available.

OpinionIn our opinion the financial statement gives a true and fair view of the state of affairs of the projectas at 31t December, 2016 and of the deficit and cash flow for the year ended.

Chartered AccountantsKano.

36/CA

KANO STATE THIRD FADAMA DEVELOPMENT PROJECT

SIGNIFICANT ACCOUNTING POLICIES

The following are the significant accounting policies which have been adopted bythe Project.

1. Basis of Accounting

The accounts are prepared on cash basis. Receipts and Payments arerecognized in the books when money is received or paid.

2. FIXED aSSETS

Fixed Assets are stated at cost

3. Depreciation

No deprediation is provided on the assets.

4. FOREIGi4 EXCHANGE TRANSACTIONS

Transaction i) foreign currencies will be converted to naira at the ruling rateat the time of each transaction. Balances held in foreign currencies at theend of ie year will be translated at the rate ruling on the balance sheetdate. All exchange rate differentials are treated appropriately in the receiptand payment account.

KAiv TETHIRDFADAMADEVELOPMENT PROJECTRFIHPT AND PAYMENT ACCOUNT FOR THE YEARENDED 3 IST DECE MER, 2016

NOTE 2016 2015

N NRECEIPTS:

Receipt from IDA 11,638,228 15,150,384

Other receipt 4 12,936,025 39,552,886

Total Receipts 24,574,253 54,703270

PAYMENTS:

Capacity Building 5 499,100 21,733,940

Small scale Community Owned Infrastructure 11,500,000 16,190,150

Operatiiq Costs j1g63 40,433,568

Total Expendituto 21,215,793 78,357.658

(Deficit) / Excess l income over Expenditure 3358460 (23654388)

4

KANO STATE THIRD FADAMA DEVELOPMENT PROJECTBALANCE SHEET AS AT 3 1 ST DECEMBER, 2016

NOTES 2016 2015

FIXED ASSETS 2 25,856,314 25,856,314

Bank Balance 3 4,668,930 1,310,470

Project Development Cost 1,107,585,936 1,107,585,9361.138.11.18p1.30752362

FINANCED BY:

IDA Fund 945,112,292 943,521,745

State Government Counterpart Fund 114,464,692 113,185,192Local Government Counterpart 63,000,000 63,000,000Other Receipts 15

118,J11,180 1,134,752,720

Project Coordiniior

Head of PFMU

5

~~-ATE THIRD FADAMA DEVELOPMENT PROJECTCASH FLO SV TATEM4ENT FOR THE YEARENDE.D 3 JST DECEMqBER, 2016

2016 2015

Cash Flow From Fi~JnCj _!nL Activities:

Funds from IDA 11,638,228 15,150,384

Other Receipts 12936,025 39552886

Ttal Cash Flow Frqm Financing 24,54253 54

CASH FLWFROM INVE STING ACTIVITIES

Capacity Building (499,100) (21,733,940)

Operating Costs (9,216,693) (40,433,568)

Small Scale Community Owned Infrastructure (11,500,000) (16,190,150)

Purchase of Fixed A(500,000

Total Cash Outfln-w From Investing.Activities (2Ll215 7 93 (78§857,658)NET CASH EQUIVAL-N AT THE END OF THE YEAR 3,358,460 (24,154,388)CASH EQUIVALENTI AT THE BEGINNING OF THE YEAR 1,310,470 25,465,858CASH AND CASH EC:1ALENT AT HFE END OF THE YEAR A&R930 1310,470

PRESENTED B Y

Bank and Can Balar,i 4,668,930 ,470Bank & Cash Balance at 31 Dec, 2016 4 1 31070

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KANQ) STATE THIRD FADAMA DEVELOPMENT PROJECTNOTES TO THE ACCOUNT FOR THE YEAR

ENDED 3 1ST DECEMBER, 2016

2016 2015N NInterest & Other Income

Bank Interest Received 2,500 2,299Donation From Coordinating Office 2 2State Government Counterpart Funding 12,933,525 54,700,97

12,936,025 54,703,270

Capacity Building IaId SupportSupport for Community Organization

15,423,440Local Government Co uinity SupportMonitoring and Evauationi 499,0 6,310,500

499.10021,733P940

Small Scale Community Owned InfrastructureFCA Owned Infrastructure 11,500,000 11,530,150Advisory Services 54,210,000Support to Adp and Adoptive Research 410,000

1.1,500,000 16,190,150

Operating CostAudit feesStaff Allowance 1,250,700 770,000Operational Cost 3,719,300 13,273,654Asset to FUG/EIG 3 8,940,320Coordination Expenses 3,960,000 7,393,874Training / workshop 3 10,030,720Bank Charges 289 1 ,0020

9,216,693 433,568

8