STL AUDIT REPORT AS OF 31.12.2005

Milton C. (Milton Cooper) Work

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• Publié par: Unne
• Nombre de lectures: 18
• Langue: English

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SUPPORT TO LIFE (STL)
ANKARA OFFICE

FINANCIAL AND ACCOUNTING RECORDS
OF STL BAM OFFICE
AS OF DECEMBER 31, 2005
TOGETHER WITH
AUDITOR’S OPINION


































To the Authorized Representative of
DIAKONIE EMERGENCY AID (DEA)
Year End: December 31, 2005


INDEPENDENT AUDITOR'S OPINION


1. We have performed an audit on the financial and accounting records of STL Bam
Office as of December 31, 2005. All information included in these documents is the
sole responsibility of the office management. Our responsibility is to conclude on the
compliance of these documents with the International Accounting Standards.

2. We conducted our audit in accordance with International Standards on Auditing and
the additional procedures detailed in section 2 of the DEA Audit Instructions and
Appendix 4 of the Administrative Agreement. Those standards require that we plan
and perform the audit to obtain reasonable assurance whether the implementing
agency’s records 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. We believe that our audit provides a reasonable basis
for our opinion.

3. Due to the timing of our appointment as auditors, we were not able to perform cash
counts as of 31.12.2005. Furthermore, no cash count minutes were prepared as of the
year-end. Therefore, no assurance could be obtained to verify the correctness of the
cash balances as of the year-end.

4. Support to Life has been implementing the projects in Iran. But we performed our
audit on the accounting records and documents made available to us in the
implementing agency’s Ankara office. The accounting vouchers made available to us
for audit purposes were in Persian. We conducted our audit by using the memos in
English that were attached to those documents.

5. In our opinion, except for the effects of the matters noted in paragraphs three and four
above, these financial and accounting records present fairly, in all material respects,
the financial position of STL Bam Office as of December 31, 2005.


Denge Ankara Yeminli Mali Mü avirlik A. .
Member Firm of Mazars




brahim Kara
Partner
Ankara, July 12, 2006
NOTES TO THE FINANCIAL AND ACCOUNTING RECORDS
OF STL BAM OFFICE
As of December 31, 2005

1. General Information about the DEA Abroad Office

Support to Life (STL), the responsible implementing agency, has Cooperation Agreement
with the Diakonie Emergency Aid (DEA), the donor for the implementation of
four projects for earthquake rehabilitation in Bam, Iran. Support to Life (the
Organization) has implemented the projects in Iran since March 2005.


2. General Information about the Projects

DEA and STL has entered the cooperation for the purposes of promoting the following
projects:

Approved
Project Title City, Country Budget (€)
1 Operationality Project Bam, Iran 130.000,00
2 Operation of Ahou Training Centers 75.500,00
3 Operation of Capacity Building of Local NGOs Bam, Iran 35.000,00
4 Operation of 5 VTCs & CBRD - APCL Puppet 69.500,00
Theatre, Barawat CC, BCB Date Fest Activities


3. Bank Transactions

The Organization keeps Rial bank account transactions in terms of Euro by applying a
fixed exchange rate. Recording exchange rate differences at the end of each month
eliminates the difference between actual and recorded figures.

Cash flows of the STL bank account are presented below. We received the balance
confirmation from Sadarat Bank. There is no difference with the records. The detailed
bank transactions lists are in the Annex 1.
Sadarat Bank Sadarat Bank IRR Sadarat Bank IRR 2
Euro Account 1 Account (€) Account (€)
Opening Balance 01.03.2005 0,00 0,00 0,00
Transfers from DEA 242.522,42 0,00 0,00
Deposit by Sema Genel 1.000,00 0,00 0,00
Transfer from ADF as cheques 0,00 12.832,58 0,00
Transfer from Euro Account 0,00 0,00 160.383,53
Transfer from IRR 1 Account 0,00 0,00 8.555,05
Exchange Rate Differences 0,00 0,00 577,62
Total Cash Inflows 243.522,42 12.832,58 169.516,20

Withdrawals to Petty Cash (80.640,56) (4.194,42) (114.032,24)
Transfers to STL IRR 2 Account (160.383,53) (8.555,05) 0,00
Payments 0,00 0,00 (2.995,93)
Bank Charges (16,14) 0,00 (32,05)
Exchange Rate Differences (0,19) 0,00 (1.299,63)
Total Cash Outflows (241.040,42) (12.749,47) (118.359,85)

Closing Balance 31.12.2005 2.482,00 83.11 51.156,35
Total Balance in Terms of Euro 53.721,46
3 NOTES TO THE FINANCIAL AND ACCOUNTING RECORDS
OF STL BAM OFFICE
As of December 31, 2005

4. Cash Transactions

STL made all payments in cash except for a few payments through bank. The cash
inflows are withdrawals from the bank accounts, cash received from project
managements in some cases, receipts from ADF and Bam Cash. The Organization keeps
single cash account in terms Euros. The inflows in Rials are converted into Euros by
using a monthly fixed exchange rate. The difference between actual and fixed rates are
eliminated by recording exchange differences at the end of each month as plus or minus.

According to the accounting records, the total inflows into the Cash account are
240.212,32 Euros, while the total outflows are 239.854,52 Euros, and the year-end cash
balance is 357,80 Euros. The detailed cash transactions list is in the Annex 2.

Since the accounting system of the Organization is cash basis, the petty cash outflows
should be equal to the expense payments made in cash. As indicated in the table in the
article #7, the project expenses made from petty cash are in the amount of 217.119,05
Euros, while the total outflows in the Petty Cash account are 239.854,52 Euros. The
difference refers to some cash payments other than project expenses. The detailed petty
cash outflows are following:

Date Description Amount (€)
Payments for project expenses for the period of 24.02.05-31.12.05 217.119,05
08.03.2005 Repayment to Sema Genel 4.000,00
31.07.2005 Repayment to Sema Genel 15.000,00
21.08.2005 Repayment to Sema Genel 1.000,00
02.07.2005 Repayment to ADF 1.786,51
13.11.2005 Advance payment to Mrs Vatani for Date Fest Venue Rent 554,94
Cash exchange rate loss 394,02
Total Petty Cash Outflows 239.854,52
Due to the timing of our appointment as auditors, we were not able to perform cash
counts as of 31.12.2005. Furthermore, no cash count minutes were prepared as of the
year-end. Therefore, no assurance could be obtained to verify the correctness of the cash
balances as of the year-end.

5. Exchange Rate Differences

As explained in the foregoing paragraphs, the Organization recorded exchange rate
differences related to the cash and bank transactions because of the monthly fixed
exchange rate application. The summary of these differences is following:

Exchange Rate Exchange Rate Exchange Rate
Gain Loss Differences (net)
Cash Transactions 2.009,91 (394,02) 1.615,89
Bank Transactions 577,62 (1.299,82) (722,20)
Total (net) 893,69




4 NOTES TO THE FINANCIAL AND ACCOUNTING RECORDS
OF STL BAM OFFICE
As of December 31, 2005

6. Project Expenses

st stThe expenses made in the period of January 1 2005-December 31 2005 are presented
below by expense categories for each project. Project expenses are made in terms of
Euros, Rials and rarely Turkish Liras (YTL). Since the Organization kept its records only
in terms of Euros, the Rials and YTL expenses were converted into Euros by applying a
monthly fixed exchange rate.

All recorded project expenses are supported with the proper documents. In our
examination we didn’t determine any expense payments that are not in the projects scope.
The detailed lists of project expenses are in the Annex 3.

PROJECT TITLE: OPERATIONALITY PROJECT
Group / Category Amount (€)
Program Coordinator (S.G.) 32.000,00
Project Assistants (expat) 42.000,00
Translator, Office Admin (local) 7.771,43
Handy Man, Cleaning (local) 1.482,00
PC, Laptops, Accessories 3.536,78
Mobile Phone Sim Cards 0
Office Furniture & Equipment 1.588,92
Car hire (incl.driver) 4.093,29
Office Rent (incl. utilities) 10.015,79
Office Stationary 1.376,33
Communication (Tel,Internet,GSM) 1.049,01
Local Travel (flights,taxi,acc.) 1.494,96
International Travel 10.756,17
Bank Charges 138,52
Representation 998,22
Job announcements,advertis., etc 22,79
Total 118.324,21

PROJECT TIT