INDEPENDENT AUDITOR’S REPORT ON THE ACCOUNTS OF MESERETE
KRISTOS CHURCH RELIEF AND DEVELOPMENT ASSOCIATION (MKC–RDA)
COMMUNITY SELF HELP FOR ECONOMIC EMPOWERMENT, FOOD SECURITY
AND CLIMATE CHANGE RESILIENCE PROJECT, ETH -110 FINANCED BY TEAR
FUND IRELAND
Section One: Report on the Audit of the Statement of Expenditure
Opinion
We have audited the Statement of Expenditure for Meserete Kristos Church Relief And
Development Association (MKC–RDA) Financed by Tearfund Ireland grant agreement,
(project Community Self Help for Economic Empowerment, Food Security & Climate Change
Resilience, ETH-110) which comprise the Statement of Expenditure for the period covered
from 01/09/2021 to 31/08/2022, and notes to the Expenditure statements, including a summary
of significant accounting policies.
In our opinion the accompanying Expenditure statements present fairly, in all material respects,
or (give a true and fair view of) the Expenditure statements of Tearfund Ireland grant
agreement, (project Community Self Help for Economic Empowerment, Food Security &
Climate Change Resilience, ETH-110) which comprise Statement of actual Expenditure Versus
Budget for the period covered 01/09/2021 to 31/08/2022 in accordance with project agreement
and Tearfund Ireland grant agreement.
Basis of Opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for
the Audit of the Financial Statements section of our report. We are independent of the
Company in accordance with theInternational Ethics Standards Board for Accountants’ Code
of Ethics for Professional Accountants (IESBA Code), and we have fulfilled our other ethical
responsibilities in accordance with the IESBA Code. We believe that the audit evidence we
have obtained is sufficient and appropriate to provide a basis for our opinion.
Responsibilities of Management for the Financial Statements
The Managements who are charged with Governance are responsible for the preparation and
fair presentation of the Expenditure statements in accordance with Generally Accepted
Accounting Practice and project agreement and Tearfund Ireland grant agreement.
And for such internal control as Management determine is necessary to enable the preparation
of Statement of Expenditure are free from material misstatement, whether due to fraud or error.
Managements are responsible for overseeing the Organization’s financial reporting process.
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Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the Statement of Expenditure
as a whole are free from material misstatement, whether due to fraud or error, and to issue an
auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance,
but is not a guarantee that an audit conducted in accordance with International Standards on
Auditing (ISAs) will always detect a material misstatement when it exists. Misstatements can
arise from fraud or error and are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the
basis of these financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:
1. Identify and assess the risks of material misstatement of the Statement of Expenditure,
whether due to fraud or error, design and perform audit procedures responsive to those
risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for
our opinion. The risk of not detecting a material misstatement resulting from fraud is
higher than for one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal control.
2. Obtain an understanding of internal controls relevant to the audit in order to design
audit procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the entity’s internal control.
3. Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by the management.
4. Conclude on the appropriateness of management’s use of the going concern basis of
accounting and, based on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant doubt on the entity’s
ability to continue as a going concern. If we conclude that a material uncertainty exists,
we are required to draw attention in our auditors’ report to the related disclosures in the
Statement of Expenditure or, if such disclosures are in adequate, to modify our opinion.
Our conclusions are based on the audit evidence obtained up to the date of our auditors’
report. However, future events or conditions may cause the entity to cease to continue
as a going concern.
5. Evaluate the overall presentation, structure and content of the Statement of Expenditure,
including the disclosures, and whether the Statement of Expenditure presents the
underlying transactions and events in a manner that achieves fair presentation.
We communicate with the management regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including any significant deficiencies in
internal control that we identify during our audit.
Solomon Demena-FCCA
Solomon Demena Certified Audit Firm
Addis Ababa
January 26, 2023
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Section Two: Report on Other Legal and Regulatory Requirements
We have obtained all the information and explanations which, to the best of our knowledge and
belief, were necessary for the purpose of our audit.
Project Name: Tearfund Ireland grant agreement, (project Community Self Help for Economic
Empowerment, Food Security & Climate Change Resilience, ETH-110.
Period Covered: 01 September 2021 to August 2022
Project No: ETH-110
Compliance Report
We have reviewed the following document and checked whether the project management was
operated in accordance with project contract and funding guidelines.
Tearfund Ireland grant agreement, on project Community Self Help for Economic
Empowerment, Food Security & Climate Change Resilience, ETH-110) grant project
financing has been used in accordance with the conditions of the relevant grant
agreement,
1.
2.
Goods, work and services financed have been procured in accordance with the financial
management policy procedure manual of (MKC-RDA).
3.
All necessary supporting activates documents, records, and accounts have been
maintained in respect of all project activities, including expenditure reported in yearly
financial reports. We also verify that respective reports issued during the period were in
agreement with the underlying books of account.
4.
Information provided in the Yearly Financial Reports is mathematically correct and
accurate.
5.
The budget in the financial Reports Correspond with budget of the Grant Agreement
and that expenses incurred were indicated in the budget of the Grant Agreement.
6.
A separate bank account has not been maintained in accordance with the provisions of
the Grant Agreement.
7.
National Laws and Regulations have been complied.
8.
(MKC-RDA). has been complied with, and
that the financial and accounting policies approved for the project were followed and
used.
9.
Financial performance of the project is satisfactory.
10.
Assets Procured from project fund exist and they are verifiable Ownership.
11.
We reviewed the financial management policy procedure manual of Tearfund Ireland
grant agreement Ethiopia Whether the expenditure for the project under review are in
accrue with the policies and procedure of the organization
Financial management policy procedure manual of
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In our opinion, proper books of accounts have been kept and the statement of expenditure is in
agreement with the books of accounts.
1. Fund:a. Fund is collected by raising cash receipt vouchers and states the source and the
amount of income correctly.
b. Fund obtained from foreign sources are properly classified.
c. Fund is collected through legal means and by the person delegated for the purpose.
2. Expenditures:a. Expenditures are accounted for when evidenced by legal and original invoices,
relevant, reliable and sufficient for the purposes,
b. Expenditures and purchases of goods and services are incurred as per the relevant
regulations and authenticated by the officials of the organization.
3. Property administration:a. Purchase of properties are received by raising Goods Receiving Notes (GNR) and
issued by raising vouchers.
b. Fixed asset registered is maintained.
c. Fixed asset identification numbers are given.
4. Cash and bank balance:a. Separate edger accounts are maintained for each bank accounts of the organization
and reconciled with the respective bank statement monthly.
5. Debtors:a. Subsidiary accounts are maintained for each debtor and are collectible timely.
6. Creditors :a. Taxes are deducted and paid over to the tax authority within the set for settlement.
b. Creditors are classified in to short and long term properly.
In our opinion, the attached Statement of Expenditure for Meserete Kristos Church Relief
And Development Association (MKC–RDA) Financed by Tearfund Ireland grant agreement,
(project Community Self Help for Economic Empowerment, Food Security & Climate Change
Resilience, ETH-110) comply with project agreement and Tearfund Ireland grant agreement,.
Solomon Demena-FCCA
Solomon Demena Certified Audit Firm
Addis Ababa
February 23, 2023
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