ft DEC .2 2z AUDIT OF THE RESOURCES MANAGED DURING THE PERIOD JULY 1, 2020 TO JUNE 30, 2021 BY THE COMMONWEALTH OF DOMINICA UNDER THE DOMINICA DISASTER VULNERABILITY REDUCTION PROJECT IDA 54950, TF 016912, TF 016955, IDA 6314DM, IDA 67170DM I'C,9 -- TABLE OF CONTENTS PAGE Transmittal Letter 1 -5 Auditors' Report on the Project Financial Statements 6 - 8 Auditors' Report on Internal Controls 9 - 10 Auditors' Report on Compliance 11 Auditors' Report on the Designated Account Statement 12 Summary of the Main Audit Procedures Performed 13 Project Financial Statements KPB CHARTERED ACCOUNTANTS Pedro Investments Building Independence Street Mr. Collin Guiste P.O. Box 202 Project Coordinator Roseau Project Coordination Unit Commonwealth of Dominica Disaster Vulnerability Reduction Project Eastern Caribbean 38 Cork Street, First Floor Tel: (767) 448 2511/2 Roseau Fax: (767) 448 5201 Commonwealth of Dominica E-Mail: kpbdm(@cwdom.dm December 23, 2021 Dear Mr. Guiste, This report presents the results of a financial and compliance audit of the Resources managed during the period July 1, 2020 to June 30, 2021 by the Project Coordination Unit under the Disaster Vulnerability Reduction Project Project (DVRP) financed by World Bank ID54950, TF 16912, TF 16955, IDA 6314 DM, IDA 67170 DM. BACKGROUND Description of Entity The Disaster Vulnerability Reduction Project (DVRP) is implemented by the Ministry of Environment, Rural Modernization and KaLinago Upliftment supported by a Project Coordination Unit (PCU) with oversight from the Ministry of Finance. The Government of the Commonwealth of Dominica is implementing the DVRP to reduce the vulnerability to natural hazards and the adverse impacts of climate change in Dominica and build resilience to adapt to such impacts. The Project consists of four components: (i) Prevention and Adaptation Investments; (ii) Capacity Building and Data Development, Hazard Risk Management and Evaluation; (iii) Natural Disaster Response Investments; and (iv) Project Management and Implementation. US$39.5 million had been allocated to the DVRP through financing from a blend of grant and highly concessionary loan funding from The World Bank under the International Development Association (IDA) and the Pilot Programme for Climate Resilience (PPCR) under the Strategic Climate Fund (SCF) and counterpart support from the Government of the Commonwealth of Dominica. Additional financing of US$31 Million has been made available by the World Bank to scale up activities following the passage of Tropical Storm Erika in August 2015 and Hurricane Maria in September 2017. The additional financing agreement was signed in November 2018 and became effective in February 2019. The Project received a second additional financing of US$12.8 million from the World Bank to meet the anticipated shortfall under the longterm East Coast Road works and the Castle Bruce culvert crossing construction. Total allocation is now US$ 83.3 Million. 1 Project Cost The total project cost is US$83.3 million and is summarized as follows: Government World Bank Total rrcoen aeorac Financed Financed US US $million US $million $million 1. Prevention and Adaptation Investments 1.125 68.9 70.025 2. Capacity Building and Data Development, Hazard Risk Management 0.375 7.00 7.375 and Evaluation 3. Natural Disaster Response Investments 0.00 1.00 1.00 4. Project Management and Implementation Support 0.00 4.9 4.9 Total Project Cost 1.5 81.80 83.3 Project Objectives The objective of the project is to reduce vulnerability to natural hazards and climate change impacts in Dominica through investment in resilient infrastructure and improved hazard data collection and monitoring systems. The Project consists of the following components: Component 1: Prevention and Adaptation Investments This component wilt include carrying out of selected infrastructure investments, including: (a) construction of water storage and distribution infrastructure; (b) slope stabilization; (c) rehabilitation of transportation infrastructure; and (d) improvement of drainage in selected areas all through the provision of works, technical advisory services, operating costs and acquisition of goods. Component 2: Capacity Building and Data Development, Hazard Risk Management and Evaluation This component wilt deal with building the capacity for analysis and assessment of risks from natural hazards and climate change, including integration of such analysis into policy and decision making process for the development of investments, and developing data collection systems including: (a) Creation of high resolution digital topographic and bathymetric model for Dominica; (b) Creation of a high resolution soil survey map; (c) Design and deployment of robust hydromet network; and (d) Development of district and community level climate adaptation plans, all through the provision of technical advisory services and training, and acquisition of goods. 2 Component 3: Natural Disaster Response Investments The objective of this component is the carrying out of Emergency Recovery and Reconstruction under an agreed action plan of activities designed as a mechanism to implement Dominica's response to an emergency; namely Contingency Emergency Response Component (CERC). Component 4: Project Management and Implementation Support The objective of this component is the strengthening of the institutional capacity for Project management, including: (a) Strengthening the capacity and staffing of the PCU; (b) Preparation of investment designs and tender documents; (c) Preparation of Project reports; (d) Processing of contracts and tender evaluation; (e) Co-ordination of participating line ministries; (f) Supervision of the quality of works (g) Provision of training of staff of the PCU in Project management and implementation support (h) Monitoring and evaluation of the Project progress and results; and (i) Carrying out related activities on Project management and implementation. Audit Objective and Scope We performed a financial and compliance audit of the Resources managed during the period from July 1", 2020 to June 30th, 2021 by the Commonwealth of Dominica under the Dominica Disaster Vulnerability Reduction Project, IDA 54950, TF 016912, TF 016955 IDA credit 6314DM, IDA Credit 67170 DM. The objectives of the audit were: 0 to issue an opinion on whether the Project financial statements presents fairly, in all material respects, the funds received and disbursements made during the year audited, as well as the cumulative investments at the end of the year, in accordance with International Accounting Standards issued by IASC and in accordance with the respective agreements with the Bank; o to issue an opinion as to whether the supplementary financial information for the Project is fairly presented, in all material respects. o to issue a report with respect to the adequacy of the internal control structure of the implementing institution in regard to the project and to the contribution of counterpart funds for the Project. o to issue an opinion with respect to the PCU's compliance with the terms of the financing agreement and applicable Laws and regulations (with regard to the financial aspects). o to issue an opinion as to: (a) whether the expenditures included in the statement of requests for reimbursement are eligible, and if the information presented in the IFR's is reasonably dependable; (b) whether the accounting and the internal control procedures used for the preparation of the IFRs are adequate; and whether Credit funds have been used only for Project purposes, in accordance with the requirements established in the corresponding agreements with the international organizations. 3 to issue an opinion as to whether the Statement of the Designated Account, if applicable, used for managing the funds provided by the Bank presents fairly the availability of funds at the end of the period audited, as well as the transactions made during the same period, in accordance with the provisions for the use of the funds established in the corresponding agreements with the Bank. Our audit was performed in accordance with International Standards on Auditing by IFAC and the following World Bank's publications: Guidelines Annual Financial Reporting and Auditing for World Bank - Financed Activities, Terms of Reference for Audits of Projects, World Bank- Financed, Disbursement Letter and supporting annexes, Financial Monitoring Reports. We also reviewed the DVRP Operations Manual. Accordingly, our audit included such tests of the accounting records as we considered necessary in the circumstances. The scope of our work consisted of the following: o To establish whether all project funds were used for the purposes provided and in accordance with the conditions of the relevant financing agreements o To determine whether counterpart funds were provided in accordance with the relevant financing agreements o To determine whether goods and services financed were procured in accordance with the relevant financing agreements o To review implementing entities system of recording and accounting for all project ventures including expenditures reported via Source and Uses of Funds, Funds by Disbursement Category or Special Accounts and to determine whether clear linkages exist between the books of account and the reports presented to the Bank o To establish whether Special Accounts are being maintained in accordance with the provisions of the relevant financing agreements o Review of project records o Review of salary charges o Review and testing of internal controls over project receipts and disbursements o Review of Project Management Report and project reporting procedures. 4 RESULTS OF AUDIT Project Financial Statements We were able to test the validity of evidential matter related to Project Sources and Uses of Funds, Use of Funds by Disbursement Categories - Amounts in US Dollars, Designated Account Reconciliation and Statements, Cash Forecast Statements, Committed Funds Statements and Procurement Contract Monitoring Reports through examination, observation and inspection. We were provided with payment vouchers, original documentation, project reports and correspondence to support project disbursements which we reviewed. We were also able to determine the eligibility of costs charged to the Project by the application of appropriate auditing procedures. We expressed our opinion on the Project financial statements for the period July 1, 2020 to June 30, 2021. Internal Control Structure We reviewed and evaluated the internal control structure of the Unit as required by International Standards on Auditing and World Bank's guidelines in order to obtain a sufficient understanding of the design of relevant control policies and procedures and whether those policies and procedures have been placed in operation. Our review of the internal control structure was made for the purpose of determining the nature, timing and extent of the auditing procedures necessary for expressing an opinion on the Project's financial statements. Compliance with Agreement Terms and Applicable Laws and Regulations The results of our examination indicated that the tested items were generally in compliance with agreement terms and applicable laws and regulations. In respect of untested items, we report that nothing came to our attention as a result of specified audit procedures that caused us to believe such items were not in compliance with agreement terms and applicable laws and regulations. We thank you and the staff of the Project Coordination Unit for the invaluable assistance rendered to us during the course of the audit. Yours faithfully 5 AUDITORS' REPORT ON THE PROJECT FINANCIAL STATEMENTS Mr. Collin Guiste Project Coordinator Project Coordination Unit Disaster Vulnerability Reduction Project 38 Cork Street, First Floor Roseau Commonwealth of Dominica Opinion We have audited the project financial statements of ' Disaster Vulnerability Reduction Project", (the "Project") which comprise the statement of designated account reconciliation, statement of sources and uses of funds and statement of cumulative investments for the year ended June 30, 2021, and a summary of significant accounting policies and other explanatory information (the " project financial statements"). In our opinion, the accompanying project financial statements present fairly, in all material respects, cash proceeds and disbursements and uses of funds by project components of the Project for the year ended June 30, 2021, in accordance with International Public Sector Accounting Standard "Financial Reporting Under the Cash Basis of Accounting" (the "IPSAS") issued by the International Public Sector Accounting Standards Board of the International Federation of Accountants, and the World Bank's Financial Management Sector Board's "Guidelines: Annual Financial Reporting and Auditing for World Bank Financed Activities" (the "WB Guidelines"). 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 Project in accordance with the International Ethics Standards Board for Accountants' Code of Ethics for Professional Accountants (IESBA Code) together with the ethical requirements that are relevant to our audit of the special purpose project financial statements, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Other matters The project financial statements are prepared to assist the Project to comply with the requirements of the World Bank. As a result, the financial statements may not be suitable for another purpose. 6 KPB CHARTERED ACCOUNTANTS Pedro Investments Building, Independence Street, P.O. Box 202, Roseau, Commonwealth of Dominica PrimeGlobal '- a.... .. Tel. 448 2511/2 E-mail: kpbdm(agcwdom.dm Partners: Marvlyn Estrado, Orlando Allan Richards Responsibilities of Management and Those Charged with Governance for the project financial statements Management is responsible for the preparation and fair presentation of the project financial statements in accordance with International Public Sector Accounting Standard "Financial Reporting Under the Cash Basis of Accounting" (the "IPSAS") issued by the International Public Accounting Standards Board of the International Federation of Accountants, and the World Bank's Financial Management Sector Board's "Guidelines: Annual Financial Reporting and Auditing for World Bank Financed Activities" (the "WB Guidelines"), and for such internal control as management determines is necessary to enable the preparation of the project financial statements that are free from material misstatement, whether due to fraud or error. Auditors' responsibilities for the audit of the project financial statements Our objectives are to obtain reasonable assurance about whether the project financial statements 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 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 the project financial statements. As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: * Identify and assess the risks of material misstatement of the special purpose project financial statements, 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. * Obtain an understanding of internal control 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 Project's internal control. * Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. * 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 Project's ability to continue as a going concern. 7 * If we conclude that a material uncertainty exists, we are required to draw attention in our auditors' report to the related disclosures in the special purpose project financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Project to cease to continue as a going concern. * Evaluate the overall presentation, structure and content of the special purpose project financial statements, including the disclosures, and whether the special purpose project financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance 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. Roseau, Dominica December 23, 2021 8 AUDITORS' REPORT ON INTERNAL CONTROLS Mr. Collin Guiste Project Coordinator Project Coordination Unit Disaster Vulnerability Reduction Project 38 Cork Street, First Floor Roseau Commonwealth of Dominica Dear Mr. Guiste We have audited the financial statements of the Resources managed during the period from July 1st, 2020 to June 30th, 2021 by the Commonwealth of Dominica under the Dominica Disaster Vulnerability Reduction Project, IDA 54950, TF 016912, TF 016955, IDA 6314DM, IDA 67170 DM. We conducted our audit in accordance with International Standards on Auditing and World Bank guidelines. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. In planning and performing our audit of the financial statements of the Resources managed by the Project Coordinating Unit (PCU) under the Dominica Disaster Vulnerability Reduction Project, we considered the internal control structure related to the World Bank financed program in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control structure. The management of the Project Coordinating Unit is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that the assets are safeguarded against loss from unauthorized use or disposition; transactions are executed in accordance with management's authorization and in accordance with the terms of the agreements; and transactions are recorded properly to permit the preparation of the Project financial statements in conformity with the financial reporting provisions. Because of inherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future years is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate. 9 KPB CHARTERED ACCOUNTANTS Pedro Investments Building, Independence Street, P.O. Box 202, Roseau, Commonwealth of Dominica f. PrimeGlobal i Tel. 4482511/2 E-mail: kpbdnacwdon.dm - Partners: Marylyn Estrado, Orlando Allan Richards For the purpose of this report, we have classified the significant internal control structure policies and procedures in the following categories: Organisational controls o Fund receipts o Fund disbursements o Procurement procedures for goods and services o Payroll 0 Fixed Assets o Bank Reconciliations o SMART Stream Reports o Interim Financial Reporting (IFR) o Project reporting For all of the internal control structure categories Listed above, we obtained an understanding of the design of relevant policies and procedures and whether they have been placed in operation, and we assessed control risk. Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be material weaknesses under standards established by the International Federation of Accountants. A material weakness is a reportable condition in which the design or operation of one or more of the specific internal control structure elements does not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the project financial statements may occur and not be detected within a timely year by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control structure and its operation that we consider to be material weaknesses as defined above. Roseau, Dominica December 23, 2021 10 AUDITORS' REPORT ON COMPLIANCE Mr. Collin Guiste Project Coordinator Project Coordination Unit Disaster Vulnerability Reduction Project 38 Cork Street, First Floor Roseau Commonwealth of Dominica Dear Mr. Guiste We have audited the financial statements of the Resources managed during the period from July 1st, 2020 to June 30'h, 2021 by the Commonwealth of Dominica under the Dominica Disaster Vulnerability Reduction Project, IDA 54950, TF 016912, TF 016955, IDA 6314DM, IDA 67170 DM. We conducted our audit in accordance with International Standards on Auditing and World Bank guidelines. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. Compliance with agreement terms, laws and regulations applicable to the Dominica Disaster Vulnerability Reduction Project, is the responsibility of the Project Coordinating Unit (PCU). As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, we performed tests on Project Coordinating Unit/Dominica Disaster Vulnerability Reduction Project compliance with certain provisions or agreement terms and applicable laws and regulations. In our opinion the Project Coordinating Unit/ Dominica Vulnerability Reduction Project was, in all material respects, in compliance with the provisions referred to in the preceding paragraph for the period July 1, 2020 to June 30, 2021. Roseau, Dominica December 23, 2021 11 KPB CHARTERED ACCOUNTANTS Pedro Investments Building, Independence Street, P.O. Box 202, Roseau, Commonwealth of Dominica PrimeGlobal Tel. 448 2511/2 E-mail: kpbdmr&cwdom.dm -_i Partners: Marylyn Estrado, Orlando Allan Richards Ar/ AUDITORS' REPORT ON THE DESIGNATED ACCOUNT STATEMENT Mr. Collin Guiste Project Coordinator Project Coordination Unit Disaster Vulnerability Reduction Project 38 Cork Street, First Floor Roseau Commonwealth of Dominica Dear Mr. Guiste, We have audited the accompanying Designated Account Statement of Resources managed during the period from July it, 2020 to June 30th, 2021 by the Commonwealth of Dominica under the Dominica Disaster Vulnerability Reduction Project, IDA 54950, TF 016912, TF 016955, IDA 6314 DM, IDA 67170 DM. Our responsibility is to express an opinion on the financial statements of the Designated Account based on our audit. We conducted our audit in accordance with International Standards on Auditing and World Bank guidelines for Special Accounts. Those standards and World Bank guidelines require that we plan and perform the audit to obtain reasonable assurance that the Special Account financial statement is free of material misstatement. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the Designated Account Statement gives a true and fair view of the financial position of the Designated Account of the Resources managed by the Project Coordinating Unit (PCU) under the Dominica Disaster Vulnerability Reduction Project for the period July 1, 2020 to June 30, 2021 in accordance with International Accounting Standards and World Bank guidelines. Roseau, Dominica December 23, 2021 12 KPB CHARTERED UNTANTS Pedro Investments Building, Independence Street, P.O. Box 202, Roseau, Commonwealth of Dominica .,.mi.TeGloba Tel. 448 2511/2 E-mail: kphdmnacwdom.dm -PrmeGlobal Partner,: Marlyn Estrado, Orlando Allan Richards SUMMARY OF THE MAIN AUDIT PROCEDURES PERFORMED * Review of documents providing guidelines for the audit. * Review of project and project related documents including loan and credit agreements. * Examination and assessment of the internal control structure. * Determination of audit strategy and design of appropriate audit and compliance tests. * Performance of tests on compliance with internal control and terms of the agreements, laws and regulations. * Verification of supporting documentation for the figures included in the project financial statements. * Confirmation of funds disbursed by the World Bank. * Physical verification tests on fixed assets. 13 GOVERNMENT OF DOMINICA DISASTER VULNERABILITY REDUCTION PROJECT AUDITED FINANCIAL STATEMENTS (IDA AND TFS - Financed) For the Period July 1, 2020 to June 30, 2021 Government of Dominica - Financing (IDA and TFs) Disaster Vulnerability Reduction Project Government of Dominica - Financing IDA and TFs AUDITED FINANCIAL STATEMENT TABLE OF CONTENTS CONTENTS PAGE NO. Sources Et Uses of Funds 1 Statement of Cumulative Investments 2 Designated Account Reconciliation 3 Notes to the Financial Monitoring Report 4 -12 fЮMENfCA ПЕ$АSТЕR VIIINfRAB1LITY REOUПION РRр1ЕП 5ources and Uses of Funds - Атоиnи in i155'ООа FOflTXEYEPRENDINGIUNE 30.х11П о,п.м Р�гды wмм�илvе пЕ�Ргs г a..i впиа5 юurceorv�nanc�nB {onsm9s тюlыэц rюlьпх iиыБ3и Еоаьпю rorx Eoдsa9s rwlь9ss паlьэи пмь3lа {Емьпю тотц сw.ппиепг wвнаБвпк OesignaICdAгmun[ 6662,92о.84 6,66L920.84 35-Э6П.39]6S 8,Т9].662.52 4.16П,171.34 6.663.930.В4 - 34,.)Л9,ц].ц о�гггг vацпгпг - - вепоаспvг Fгпаппп[ . - wкг - - lпtегекl I6,566.63 5,522.2} }],А$6,дд 52,d62.W - 4х,03Б.83 - Refunд5 - 3,9ga,g5 3,980.85 - тогаi Чгп+огг 1д1 16.sьь.ьз ч,sа].оь v,па6.9э 6,7ts,3aг.aa 6.7sfi,эazsz ц�ьа,з9].ы &797.Б61.и s.lsа,гпю Б,Бьх,я3ыw - за,9ач,ц7-2Б lS9IXfENФNR6 _ - Сwпрогьсп[ 1 70Э 57G i6 '_5(1 ЬЧЬ Чд 753,945.09 2,360,335.Э0 1,018,799.68 А,9а6,q5з,57 3,306.761.19 а3Ь.S4д.41 3.453,31Э.25 3,855,814А5 1,тв,799.ьа 11,9В9,ц293 ГлтРопепг2 1,516,1ь9.10 1$I6,169.1В - 4,3Э3,350.43 - - 0.133.350.43 ComPOnent3 . . . . - ],а3].W0.66 - - - 7,В.Э].ОБ0.66 [pryiPaПeПtd 3в,623.а6 344.154.11 387,5]69] - 2,т2,925.71 - 7б7,085.60 2,a1O.1c11-S1 тлыtF.ргпд'пииf$} 7о3576.56 L&16два.5а 75Э.аа5.л3 гьодАв9.аI 1Акв.�эч.ьа б.ваs.599.ы slдаз.вц-аs 7А1а.ит.ц 2.а3з,зlз.ц а,ьп.чw.о5 1,тв.733-ьв хь.z49.735.Э6 ПЕWР[S 1S5IXPENORUX6 - - ИггсhалgепСаSм{л-в] гьв7,оа9sз{ {1,]э5,]ю.ва� {�ss,9sв.IO] п,31а,в92.аз (гд2в,799.бв{ Е1zь,ьs].v7 a,x3o,sa5.]ь 2,]а6,]9ьs7 2,72o,as7.99 3,оао,о3о.29 S2,o1s,]99.sв{ д739,цх.т Fогдgп Ены,апgе лв{иsгпепг - - 9FNN BRlAN�9 - Орвпiп[ Osh ввlвп[ег - - аеsigпаидьси�пг 1,3iч,zзzaa а,v3,39в,9о 2,Э7о,916.в3 �за9,о3в.зо{ - 7.та,5о9-а7 - ЧЕR� ы0 Вапk Баlапге - - - ProieRACCOUn[ 3,976,163.69 {5в8,861.03{ 3],239.3(1 [A,360.589.32{ - 1,564,хц5в - Толi ppenгrce a�.ianк а.ьвs.ь]ь.оь з,sea,sv.a] даоs,цьl3 �1.7о9,Бх7.вz] - ач6Б,7iга5 - пояпБ а5м вiипгг5 - - ог.�[пл�дасии�г a1s79о.ц isa3чrз,>9 х,пз,зs+.ь� з,3х7,1л].о1 {11д1z.ю{ 7дц,хч3.n - дERG plD Bank Еюипсг - . - Рго1гпаггсипг з,tв6.а75.61 216,ьБ3.а& {1тд3ь.ьь{ iaaт,sozss{ (ч9/,]аь.авk 1д16,]sгw - ТW1Пмiп[�bn[е 3.996.66619 }.]Бр.636.В7 fi.67L7.98.01 2429,39436 (1-mE.799.d8I 8,842043.Л 1 DOMINICA DISASTER VULNERABILITY REDUCTION PROJECT Statement of Cumulative Investments Year Ended June 30,2021 Categories Current Year Prior periods Cumulative US$ us$ Category 1 4 986,853.57 11.469,282.98 Category 2 1.516,169.10 4.133.350.43 Category 3 - 7,837,090.66 Category 4 382,576.97 1810,011.31 IT=, t a = 6,885,599.64 26,249,735.38 2 GOVERNMENT OF DOMINICA MINISTRYOF ENVIRONMENT, RURAL MODERNIZATION AND KALINACOUPLIFTMFNT DOMINICA DISASTER VULNERABILITY REDUCTION PROJECT INTERIM UN-AUDITED FINANCIAL MONITORING REPORT DESIGNATED ACCOUNT RECONCILIATION For the Period April 1, to June 30, 2021 (IDA And TFs-FINANCED) (in USD) DESIGNATED ACCOUNT RECONCILIATION LOAN/CREDIT/PPFICOFINANCIER NUMBER P129992 Source of Financing US $ TOTAL IDA 54950-DM TF016912 TF016955 IDA 6314-DM USID USD USD USD USD I Total Advanced by World Bank (or Coinancier) 34,989,157.21 15,364,397.61 4,164,171.24 8,797,667.52 6.662,920.84 2 Less Total amount documented by World Bank (19,559,681.55) (0440.275 29) (1.699.868.16) (5,343,493 17) (2.076.044.93) 3 Present outstanding amount advanced to the Designated Account (1-2) 15,429,475.66 4,924,122.32 2,464,303.08 3,454,174 35 4,586,875.91 4 Balance ofDesignated Account and Project Account as o1 June 30th 2021 8,842,045.71 3,998,666 15 1,672,198 01 1,760,636.87 2,429.344 36 S PlusTotal amont claimed in this application. 5,179,073.41 665,191.25 712,704.91 562.713 80 2,240,676.57 6 Plus Total amount withdrawn and not yet claimed 1,408.356.$4 260,26492 79,400 16 1,130,823 68 (03,145 02) Plus amounts claimed in previoas applications not yet credited at dane of bank statement 0.00 - Application No 0.00 - Sub Total of previous applications not yet credlied 0.00 0.00-- 8 Less: Interest eaned 0.00 - 9 Total advance accounted for (NO.4 through No 8) 15,429,475,66 4,924,122.32 2,464,303.08 3,454.174.35 4,586,875 91 10 Difference(3-9) 0.001 II Explanation of any differnees shown in line 10; D ote:A U G UST 12, 2021 Sinature: ....................... . .1 ........................ COLLIN GUISTE Title: PROJECT COOROINATOR 3 Government of Dominica Disaster Vulnerability Reduction Project Interim Financial Monitoring Report IDA 54950 / TF 16912 / TF 16955 IDA 63140- DM / IDA 67170- DI Notes to the Financial Statements For the period July Ist, 2020 to June 30th, 2021 1: PROJECT DEVELOPMENT OBJECTIVE The Government of the Commonwealth of Dominica (GoCD) received financing from the World Bank (WB) and the Climate Investment Fund (CIF), totaling US$38 million towards the cost of the Disaster Vulnerability Reduction Project (DVRP), The project financing from the WB was approved on May 01, 2014 and comprises an International Development Association (IDA) Credit in an amount of US$17 million a Strategic Climate Fund (SCF) - Pilot Program for Climate Resilience (PPCR) Loan in an amount of USD$9 million and a SCF - PPCR Grant in an amount of USD$12 million. The project became effective on September 08, 2014; with the IDA Credit and the PPCR Credit and Grant having a closing date of July 01, 2020. The objective of the Project is to reduce vulnerability to natural hazards and climate change impacts in Dominica through: (i) investment in resilient infrastructure, and (ii) improved hazard data collection and monitoring systems. Following the severe impacts from the passage of Tropical Storm Erica in August 2015 and more recently, Hurricane Maria in September 2017, increase in Project Scope was necessitated, triggering discussions on the Additional Financing (AF) option. To this end, an IDA Credit of USD31 million was approved September 28, 2018. Further, the project also received a second Additional Financing from the World Bank in the amount of US 12.8 million under IDA Credit 67170 to meet the anticipated shortfall under the Long-term East Coast Road Works and for the construction of the Castle Bruce Culvert Crossing. The breakdown of the total AF towards activities under the DVRP is as follows: Component I - Prevention and Adaptation Measures (increase of US$40.9 million); Component 4 - Project Management and Implementation Support (increase of US$2.9 million). The closing date for the Additional Financing Credit is June 30, 2023; the closing date for completing existing activities under the DVRP"s Credit and Grant was also amended to coincide with the additional financing. 2. PROJECT FINANCING AND PROJECT MANANGEMENT The Project is implemented by the Ministry of Environment, Rural Modernization and Kalinago Upliftment, supported by a Project Implementation Unit -DVRP (PIU) with oversight from the Ministry of Finance. The original estimated cost of the DVRP parent project was estimated at US $39.5 million with the World Bank funding US$38 million and Government counterpart financing totaling US $1.5 million. There has now been an additional financing of the DVRP by the World Bank of IDA Credit in the amount of US$31 million which was signed in November 2018 and became effective in February 2019 and US$12.8 million which was signed on October 30, 2020 and became effective January 25, 2021. This Additional Financing (AF) will scale up activities initiated under the parent project following the passage of Tropical Storm Erika in August 2015 and Hurricane Maria in September 2017, 4 The total financing of the DVRP is broken down as follows below: Component 1 Component 2 Component 3 Component 4 Total US$ M US$ M US$ M US$ M US$ Counterpart Financing 1.125 0.375 1.5 IDA 54950 16.0 1.0 17.0 SCF Credit TF 016912 9.0 9.0 SCF Grant TF 016955 3.0 7.0 2.0 12.0 IDA Credit 6314DM 28.1 2.9 31.0 IDA Credit 6717ODM 12.8 12.8 Total 70.025 7.375 1.0 4.9 83.3 3: PROJECT DESCRIPTION The project consists of four (4) components: Component 1: Prevention and Adaptation Investments This component would be designed to reduce physical vulnerability and pilot adaptive measures to build resilience to current and future hydro-meteorological shocks. Activities under this component include carrying out of selected infrastructure investments, including: (a) construction of water storage and distribution infrastructure; (b) slope stabilization; (c) rehabilitation of transportation infrastructure including, inter alia, selected primary and secondary roads and bridges; and (d) improvement of drainage in selected areas, all through the provision of works, technical advisory services, operating costs and acquisition of goods. Integrated hazard/climate analysis will inform engineering designs with respect to future service demands and infrastructure design life and will be built into the pre-engineering phase of each subproject. Component 2: Capacity Building and Data Development, Hazard Risk Management and Evaluation This component will support the creation of relevant core data and data collection systems as well as the integration analytical tools to permit improved decision making and engineering design for risk reduction and climate change adaptation. Activities under this component support building the capacity for analysis and assessment of risks from natural hazards and climate change, including integration of such analysis into policy and decision making process for the development of investments, and developing data collection systems, including: (a) creation of high resolution digital topographic and bathymetric model for the Recipient; (b) creation of a high resolution soils survey map; (c) design and deployment of robust hydromet network; and (d) development of district and community level climate adaptation plans, all through the provision of technical advisory services and training, and acquisition of goods. Component 3: Natural Disaster Response Investments This component would support carrying out of Emergency Recovery and Reconstruction Subprojects under an agreed action plan of activities (Agreed Action Plan of Activities) designed as a mechanism to implement the Recipient's response to an Emergency. This provisional component would allow rapid reallocation of the IDA credit, under streamlined procurement and disbursement procedures, to cover emergency response and recovery costs following an adverse natural event that causes a major disaster in Dominica. The contingent emergency component would be triggered, by an official Government of the Commonwealth of Dominica declaration of an emergency, in accordance with the country's laws and policies, following an adverse natural event. Dominica may ask the Bank to re-categorize and reallocate financing, from other project components to partially cover emergency response and recovery costs. This component could also be used to channel additional funds, should they become available, in response to the emergency. 5 Component 4: Project Management and Implementation Activities under this component would support strengthening the institutional capacity for Project management, including: (a) strengthening the capacity and staffing of the PCU; (b) preparation of investment designs and tender documents; (c) preparation of Project reports; (d) processing of contracts and tender evaluation; (e) coordination of participating line ministries; (f) supervision of the quality of works; (g) provision of training of staff of the PCU in Project management and implementation support; (h) monitoring and evaluation of the Project progress and results; and (i) carrying out related activities on Project management and implementation, all through the provision of technical advisory services, training and operating costs, and acquisition of goods. The project will also support knowledge sharing and lessons learning activities at the program level and coordination with the PPCR Caribbean Regional Program in terms of knowledge management and M&R 4: Basis of preparation These project financial statements have been prepared in accordance with the International Public Sector Accounting Standard (the "IPSAS") "Financial Reporting under the Cash Basis of Accounting" issued by the Public Sector Committee of the International Federation of Accountants, and incorporate the following principal accounting policies, which have been consistently followed in all material respects and comply with the World Bank's Financial Management Sector Board's "Guidelines: Annual Financial Reporting and Auditing for World Bank Financed Activities" (the "WB Guidelines"). Under the cash basis approach income (or expenditure) is recognized when cash is received (or paid) irrespective of when goods or services are received or provided. a. Statement of compliance These project financial statements consist of * Statement of Designated Account * Statement of Sources and Uses of Funds * Statement of Cumulative Investments * Significant accounting policies and other explanatory information * The reporting currency of these special purpose project financial statements is US Dollars ("USD"). b. Basis of measurement These special purpose project financial statements have been prepared on the historical cost basis. The functional and presentation currency is United States Dollars (USD). The amounts expended in Eastern Caribbean Dollars (XCD) are converted to United States Dollars (USD) at exchange rate of 2.6882 for XCD. 5: PROJECT EXPENDITURE During the Financial Year 2020/2021 the project expenditure totaled US $6,885,619.16 for the implementation of activities under the different financing instruments. The table below depicts the amount spent per component under each financing instrument: COMPONENTS IDA 54950 TF 16912 TF 16955 IDA 6314 IDA 67170 Component 1 $ 703,576.56 $ 753,445.09 $ 250,696.94 $ 2,260,335.30 $1,018,799.68 Component 2 $ 1,516,169.10 Component 3 Component 4 $ 38,422.86 $ 344,173.63 TOTAL $ 703,576.56 S 753,445.09 S 1,805,288.90 $ 2,604,508.93 $ 1,018,799.68 6 In addition during the financial year under review, total Government Contribution amounted to XCD $347,418.47 i.e. VAT payments to various project contractors under the following project activities as follows; Construction of Meteorological Office Building, Construction of Forestry Nurseries and the West Coast Water Storage work- Picard/ Glanvillia Water Supply. 5.1 Financial Statements DOMINICA DISASTER VULNERABILITY REDUCTION PROJECT STATEMENT OF INCOME & EXPENDITURE FOR THE YEAR ENDING JUNE 30, 2021 2021 2021 RECEIPTS USD XCD Opening Balance 8,968,722.45 24,109,719.70 Replenishment during the year 6,662,920.84 17,911,263.80 Interest Received 92,036.83 247,413.41 Refunds to Project CERC - Refunds to Project 3,984.84 10,712.05 TOTAL FINANCING 15,727,664.96 42,279,108.96 PROJECT EXPENDITURES BY COMPONENT Component 1 (4,986,853.57) (13,405,659.77) Component 2 (1,516,169.10) (4,075,765.77) Component 3 Component 4 (382,596.49) (1,028,495.88) Total Project Expenditures (6,885,619.16) (18,509,921.43) Closing Balance 8,842,045.80 23,769,187.53 CASH Project Designated Account 7,425,293.21 19,960,673.21 Project Operating Account 1,416,752.50 3,808,514.08 TOTAL 8,842,045.71 23,769,187.29 NOTE 6: CASH Cash availability at the end of the period was as follows: June 2021 June 2020 US $ US$ Designated Account 7,425,293.21 7,404,509.87 Project Account 1,416.752.50 1,564,212.58 Total 8,842,045.71 8,968,722.45 7 DOMINICA DISASTER VULNERABILITY REDUCTION PROJECT 2021 2021 5.2 Balance of Project's Funds and Cash Status USD XCD Opening Balances 8,968,722.45 24,109,719.70 Add: Total Receipts during the period 6,662,920.84 17,911,263.80 Less: Total Expenditure during the Period (6,885,619.16) (18,509,921.43) Add: Interest Received 92,036.83 247,413.41 Add; Refunds to Project CERC - Add: Refunds to Project 3,984.85 10,712.07 Excess of Receipts over Expenditure 8,842,045.81 23,769,187.56 a) Request for Disbursement from the World Bank during the Financial Year 2020/2021 totaled US $6,662,920.84. These disbursement request deposited into the Project Designated Account at the National Bank of Dominica under the different financing instruments. The funds were received under the Loan IDA 6314. NOTE 7: INTEREST Interest earned on deposit in the Designated Account during the period July 1, 2020 to June 30, 2021 was: June 2021 June 2020 Us $ Us $ Designated Account 92,036.83 53008.12 Total 92,036.83 53.008.12 NOTE 8: BANK CHARGES The following bank charges were incurred during the financial year 2020/202 1. June 2021 June 2020 US$ us $ Designated Account 718.76 1,146.38 Project Account 77.65 220.89 Total 796.41 1,367.27 8 NOTE 9: FIXED ASSETS Fixed Assets acquired for the period under review have been updated in the Fixed Assets Register. The figures below indicate the value of the Fixed Asset as registered in the Fixed Asset Register, June2021 June2020 us $ us $ Motor Vehicle 50,182.28 50,182.28 Computer Equipment 40,129.03 38,809.28 Furniture & Equipment 53,477.44 50,331.04 Total 143,788.75 139,322.60 10: Subsequent Events Disclosure COVID-19 Pandemic Since late January 2020, countries and their economies have been severely impacted by the global COVID-19 pandemic with Dominica no exception. During this period, the Commonwealth of Dominica, and all sectors within (public & private) have taken significant measurers to control the rapid spread of the virus, these include lockdowns, curfews, quarantines, and closure of the boarder to external travel. The impact on the DVRP has been a delay on the project's implementation, due to the inability of consultants to travel. All health and travelling protocols as mandated by the Ministry of Health were strictly adhered to. This resulted in the delay of key experts' mobilization and arrival on site for the start of the supervision services and works contractor of the East Coast Road Works; as many of their key experts are non-national. In addition, the protocols on travel with regards to vaccination and its unavailability during the initial stages of the pandemic also resulted in delay in the Supply and Installation of Hydro Meteorological Network Equipment as the consultants were unable to travel. The deployment of a team of technicians from the Seismic Research Centre from UWI - Trinidad was also significantly delayed due to travel restrictions within the Caribbean, hence impacting the commencement and completion date of the installation of the National Seismic Monitoring Network. Further local protocols implemented such as staff rotation and lockdowns resulted in further delays in the project activities implementation. Depending on the duration of the COVID-19 pandemic and continued negative impact on economic activity, the project might experience further delays which will have a negative impact on results. The exact impact on the DVRP activities for the remainder of 2021 and thereafter cannot be predicted. However, the DVRP in order to reduce the negative impact of the COVID-19 pandemic on the project activities have developed guidelines such as Guideline for Managing the Risks of COVID-19 on Construction Sites and continuously work with our partners, consultants and constructors to ensure that protocols and guidelines are followed and will continue in the foreseeable future. 9 NOTES 11: CONTRACTS AWARDED DURING THE PERIOD UNDER REVIEW CONTRACT NUMBER CONTRACTOR Contract Description Contract Estimate US S Construction of the Meteorological Office Building & Associated Civil PPCR/DVRP/ICB-01/16 ACE Engineering Ltd Works $ 843,207.24 PPCR/DVRP/ICB-01- Renee Construction A/I 6 Company Ltd Construction of the Forestry Nuseries $ 475,449.84 PPCR/DVRP/CS-09/16 Mark Heggli Consultancy Services to develop Hydromet instrument specifications $ 79,344.00 Consultancy for Preparation of Technical Specification for National Soils PPCR/DVRP/CS-03/17 Stephen Dadio Survey $ 103,412.00 Architetural Design & Construction Supervision of the Met Office PPCR/DVRP/CS-05/16 Lennard Andre Building $ 50,400.00 Quality Assurance/Quality Control of Ariel Orthophotography, Lidar PPCR/DVRP/CS-06117 Timothy Webster Terrain & Bathymetry, Data Acquisition & Modelling $ 104,128.00 Design and Construction Supervision for the Rehabilitation of Forestry PPCR/DVRP/DC-02/19 Wilston Etienne Propagation Nursery $ 45,527.49 Consulting Services Amended-Administrative/Contract Management DOM/DVRP/SERO2/2014 Tamika Lafond Assistant $ 60,263.37 PPCR/DVRP/DC-01/19 Collin Guiste Consulting Services- Project Coordinator $ 40,175.58 PPCR/DVRP/SER- 03/2017 Ken George Consulting Services- Financial Management Specialist $ 80,351.16 PPCR/DVRP/SER- 03/2015 Jossie Stephenson Consulting Services Amended - Procurement Officer $ 70,307.27 DOM/DVRP/SER 04/2015 Easlyn Nadette Langford Consulting Services M & E Communication Specialist $ 35,153.63 DOM/DVRP/SER 05/2015 Wynyard Esprit Consulting Services Engineer $ 80,351.16 PIENSA Labs S.A.S and PPCR/DVRP/CS-05/18 Kartoza (PTY) Limited Training & Technical Assistance DOMINODE Spatial Sharing Platform $ 219,900.00 DOM/DVRP/ICB-01/19 YSI Incorporated Purchase and installation of Hydromet Network $ 1,062,902.55 Al-Abdulhadi PPCR/DVRP/CS-0 1/18 Engineering Consultancy Construction Supervision East Coast Road Works $ 1,150,000.00 D O M /D V R P /IC B - 0 2 / 1 9 S o tra d o m S A S R e h a b ilita tio n o f E a ste rn R o a d W o rk s P h a s e O n e $ 4 7 ,1 5 9 ,9 9 1 .6 0 Total $ 51,660,864.89 10 DOMINICA DISASTER VULNERABILITY REDUCTION PROJECT 5.3 Detailed Income and Expenditure Report 2020/2021 2020/2021 USD XCD INCOME Opening Balance 8,968,722.45 24,109,719.70 Receipts from World Bank during the year 6,662,920.84 17,911,263.80 Refunds to Project 3,984.84 10,712.05 Refunds to Project CERC - Interest Received 92,036.83 247,413.41 Total Income 15,727,664.96 42,279,108.96 EXPENDITURE Consultancy 6,511,125.33 17,503,207.11 Personal Emoluments & Social Security 315,368.48 847,773.54 Utilities 1,283.84 3,451.23 Supplies and Materials 3,302.86 8,878.74 Communication Expenses 14,903.27 40,062.96 Vehicle Expenses 1,893.09 5,089.01 Repair and Maintenance Services of equipment 297.69 800.25 Rental of Property 20,534.19 55,200.00 Professional & Consultancy Services 3,887.36 10,450.00 Insurance 2,032.10 5,462.70 Other Machinery & Equipment 3,941.91 10,596.64 Sundry Expenses 6,252.72 16,808.55 Bank Charges 796.41 2,140.91 TOTAL EXPENDITURE 6,885,619.24 18,509,921.64 Surplus of Receipts over expenditure 8,842,045.72 23,769,187.32 11 DOMINICA DISASTER VULNERABILITY REDUCTION PROJECT Statement of Cumulative Investments Year Ended June 30, 2021 Current Year Prior periods Cumulative Categories US$ US$ Category 1 4,986,853.57 11,469,282.98 Category 2 1,516,169.10 4,133,350.43 Category 3 - 7,837,090.66 Category 4 382,596.49 2,810,011.31 Total 6,885,619.16 26,249,735.38 12