‘Addis Ababa,Ethiopia Date 20 March 2019 ‘The Manager ‘bay Nilo Aza ‘Subject ngagement Later ‘You have requested that ne audit the Statement of Financial Position Youth Impact Development Association, as of 1 December 2018, and the related Statement of (Comprehensive Income and Cash fw Statement forthe year then ended. We aro pleased to confirm our acaptance and our understanding of thie engagoment by means of this, lottr, Our audit will be made with the objective of our expressing an opinion on the financial statements. We will condvet ox suit n acconlance with International Standards en Auditing, Those ‘Standards require tht we lan and perform the audit to obtain reasonable assurance about ‘whether the financial atatementa are fro of matazial misstatements, An audit includes examining, on a test bass, evidence supporting Ube amounts and disclosures in the financial statements, An alt also includes assessing the accounting principles vsed and ‘simifcanteetimates made by management, as well as evaluating the overall financial ‘statements presentation Because of the test nate and ate Ierent limitations of an aut, togethor with the inherent limitations of any accounting and intarnal contol syst: tere ie an unavoidable "isk hat even some material misetetenients may remain wndisooveted, In nfaition to our report op the nanesst statements, we expect to provide you with &We remind you that the esponsibility for propatstion of financial statements including ‘dequate disclosure is that of the management-of the company, ‘This includes the Iaaintenance of adequate accounting resonls end internal controls, the selection and pplication of secounting polices, and the safeguarding ofthe assets of the eompeny. As Dart of our audit procest, we will request from management witten confirmation concerning representation made to ua in connection withthe ait. We look forward to full ecpration with your staff and we trust that they will make available to us whatever records documentation and other information are requested in ‘connection with our audit, Considering the volume of sransactions ofthe Organization and agrooment reached with _your god all, the nul fe for the year 81 December 2018 shall be Bir 1,000 Plus VAT ‘Ths letter willbe effective fer future years unless it is terminatod, amended or aupersaded Please sign and return tho tached copy ofthis eter to indicate that tein accordance ‘with your understanding of the arrangements for our audit of the nasil statomenta, a a Cities ee 20March2018 pe al testystessemsietineLoests 84 igmaicomABAY NILO AZUL ACCOUNTS AND AUDIT REPORT FOR THE ENDED OF 31 DECEMBER 2018 PAG PAT eromANCA PaAN APE AT PELDRAT DAAC ‘Tesfaye ‘Lessemachartered Certified Accountant & Authorised Auditor spzsteanac010220251-4185.586377 “PUeArMobs +254-944-420095264.019-354000 ‘Fasectesesa02 “sas ‘AAD ANN AAf%'S/ Addis Ababa, Ethiopia‘TABLE OF CONTENTS Audit Report Balance sheet Statement of Receipt and Pxpenditure ‘Notes to the Financial Statements Compliance PageFreeiicnt rkan APE RG Phadend nate eee Se Ret. No Wei 1214 lor) 2209 Addis Ababa,Ethiopia INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF ABAY NILO AZUL Wie have auited the acompanying financial statements ofthe Abay Nilo Azul which comprise the Iulanee shet ab of 31 December 2018, the statement of income and expandture forthe ended 31 December 2018, and a summay of significant accounting polices and other explanatory notes. The financial stetement has been prepared by management using the modified cash receipts and ‘expenditure basso accountng described in note vo tothe nancial statement. Managements’ Responsibility fr the Financial Statement Management is responsible fo: the peparaton and fl resentation ofthese Finacial statemons i ctordance wih the modified cash receipes and expenditute bi twoto the sof accounting described in note ncal statement this includes that the mogifed cash receipts and expenditure basis of ccountng isan aceptable basis forthe preparation of the financial statements in the ereumstances, land for Such internal contol 38 management determines is necessary 10 enable the preparation of Financial statements that are fice from material mistatement, whether de ofaud or err. Auditors! Responsibility ‘Our esponsbiliy i to express an opinion on these financial statements based on our aut. We ‘conducted our ait aScrdence with litsnational Standards on Auditing a fhe requirements of the Charts and Societies Agincy Proclamation No. 62/2009, Intemational Sandan on Ausiting require that we comply withthe ethical requirements and pl resonable asirance whether te financial statement are fe rom mata misstatement ‘and peeforn the audit to obtain ‘An auit involves perforin procedures to obtain aut evidence about the amounts and disclosures inthe financial statement, The procedures selected depend onthe editor judgment, inelading the assent ofthe risks of material misstatement ofthe nancial stement, whether de to fraud or ‘ror. In making those risk assessmens the autor considers internal conta relevant the entiys preparation and sr presentation ofthe financial statment inorder o design aust procedures that ‘ae appropriate in the eicurstances, but not forthe purpose of expressing an opinion on the cfectiveness oft ents inna contol. An aulit sso includes evalatng the sppropiteness ‘of accountng polices used andthe reasonableness of accounting estimates made by management, a8 ‘well evalatng the overall everation of Ue nancial sateenae rte We believe tha the ait evidence we have obtained is suficient and appropriate to provide basis far our suit opinion, - ‘Unqualified Opinion 1m ou opinion, the financial saternent presents fairly nal materiel respec, the finan position of ‘Abay Nilo Ailes a 31 December 2018 and of i income reosived and expenses incre for the ‘ended 31 December 2018 in accordance withthe modified eash receipts and expenditure bass of ‘sccountng described in note wo to the ancal statement, Report on Other Legal and Regulatory Requirements In our opinion, besed on out verification procedures, Abay Nilo Azul has complied with the requirements of the Chaies and Societies Ageney Proclamation No. 621/2009 and the mates ‘eseribed in ciective 8 isusd by the Charice and Societies Agency issued in September 201 Whoever, Income not collected on pre-numbured Gish eccipt. fie 27 March 2019 ‘Tesfaye Tessema, Chartered Certified Accountants ‘Addis Aba ‘and Authorised Audiorysae ace _ STATEMENT OF FINANCIAL POSITIONS AS OF3 DECEMBER 2018 Notes ASSETS EMPLOYED 2a CURRENT ASSETS. Accounts reosivable 3 215,959 ‘Cash and bank balances 4 169,219 LESS: CURRENT LIABILITIES Accounts payable 5 [NET CURRENT ASSETS [REPRESENTED BY Generat fantABAY NILO AZUL, STATEMENT OF INCOME AND EXPENDITURE FORTHE YEAR ENDED 31 DECEMBER 2018 Notes INCOME Donation income 6,20) EXPENDITURE, Program costs 8,246) 90% Administrative expenses 9,200) 10% EXCESS OF INCOME OVER EXPENDITURE Currency: Ethoplan Birr 7633,138 26001 8,750,554AMAY NILO AZUL NOTES TO THE FINANGIAt. STATEMENTS ~ FOR THE YEAR ENDED 31 DECEMBER 2018, re: pn Bo 1. BACKGROUND [bay Nilo Azal is a Non Profit and Non Governmental Organization with its head office in Valencia, Spin and registered and licensed by FDRE Charities and Sorieties Agency as a ‘oceign charity in aecordnce with chates proclamation No.621/2009 on November 22,2012 ‘The organization operates withthe following objectives: 10 improve inftastcture of Gaba Kemisa Medial Center to cmble child bch assistance inthe center to provide health ad hygiene edveation 1a prevent the spread of sexually transmited diseases to vedue child and mater death to prevent ad contol transmited diseases SIGNIFICANT ACCOUNTING POLICIES ‘The principal accounting policies (Moslified cash basis) adopted int sateen of receipts a expenditures are stout below: preperation ofthese 8) Income income when the cash i Incomes especilly, donations income is recognized colleted from te donors. by Expense "Expentues are recognized inthe book oF account when they are incured, 9) Otheritems Other tems sich as inventories including property, an equipment re expensed when they are acquired aADAY NILO AZUL NOTHS TO THE FINANCIAL STATEMANTS: FOR THE YRAR ENDED 31 DECEMBER 2018 1) Foreign eurraney transactions "The functional cureney is Ethiopian Bi. ‘Transaetions in foreign cureny are accounted as follows: |. come received from donors is translated into the repoting currency (Bin) at the te prevailing on the date of transi. Monetary ast and abilities oustanding atthe close ofthe aecounting peviod re tansated atthe rte of ulingon that dtsCurren: Ethiopion Birr ABAY NILO AZUL NOTES TO THE FINANCIAL STATEMENTS. FOR THE YEAR ENDED 31 DECEMBER 2018 3. ACCOUNTS RECEIVABLE Project advance Receivable from projet advance Saf ecivable 4 CASH ON HAND AND AT BANK. (Casha bank 5 ACCOUNTS PAYABLE Unpaid salary Income tnx payable Pension contribution ‘Account payable 6 INCOME z Foreign donation Local donation 7 FUND BALANCE, und balance brought forward 580,743) 676 ‘Add: Excess of expenditure ove income fo the year 291.345 05.ABAY NILO AZUL NOTES TO THE FINANCIAL STATEMENTS. FOR THE YEAR ENDED 3 DECEMBER 2018 5 PROGRAM Costs Salary for program sts Food, cloths, sanitatons and heath sepport fr eildons in kangaro project ‘Cloths and blankets fer women’s in rehabilitation programmes Provision of monthly helt and ntriionsuppoet fr Family around Welmers Words in Caba Kemiss Kebole ‘Sponsorship fr to Childrens in autism center ‘Schoo! materials and ful for generator for Alternative Basi duction Programmes Sponsorship for studs to train in college Cai, able & motor cyte for student in sponsorship program Expansion of infrasretre in the public schoo of Bacho ‘Weltera in Gaba Kenisa Kebele Construction of textile taining center Purchase of textile and machineries of taining ceter ‘Sport materials for heh tough sport program 9 ADMINSTRATIVECOSTS Salary for administeat ve ttf, Weiteoffexponse. Stationary and praing Pel ad lbeeant “Transport and perce for projet monitoring and survey activites “Transporation and pam Repair and maintenance Office rent (Commurisation~ License ad registration Professional fe Office funiture and equipment Penalty Miscellaneous‘isp rept rts by Cha Seis Asney + ome alte by ig cath epee bys ease aes so ey “Ae be ume wees forsee fie lay He ‘Aline weft toro pert oat ey tank {iri eet te rnin ea + spent oad unr sme spore pep sare doce ‘Theepinon ie pres pt ce {homens eet oie pe pees diy te pao, Pave er zoel ren tel Smns mee dr spporig ence gente rhe ed du pe oe ond ong pedis oa by nn, 1 Penn epee of heptane Fixed Asset + Pace of st a pote by ep ves Poste recount 1 These wee Regent spot Pte see ope and sion Sate ean be Pank Balance “Th el fuk st ty hes 5 kien re 1 Ritkascune weeny eater ‘Account Receivables Recs eect tine 1 Resse we prone gurl ‘Account Pas 4 nepal