GOJ/IBRD GRANT NO. TF0A0433 IMPROVING CLIMATE DATA AND INFORMATION MANAGEMENT PROJECT FINANCIAL STATEMENTS FOR THE PERIOD APRIL 1, 2018 TO MARCH 31, 2019 GOJ/IBRD GRANT NO. TF0A0433 IMPROVING CLIMATE DATA AND INFORMATION MANAGEMENT PROJECT FINANCIAL STATEMENTS FOR THE PERIOD APRIL 1, 2018 TO MARCH 31,2019 TABLE OF CONTENTS Page Number Independent Auditor's Report 1-5 Financial Statements Statement of Sources and Uses of Funds 6 Statement of Cumulative Investments 7 Designated Account Reconciliation Statement 8 Notes to Financial Statements 9-14 L1 AUDITOR GENERAL'S DEPARTMENT 40 KNUTSFORD BOULEVARD P.O. BOX 455 KINGSTON 5 jAMAICA Tel. No.: 926-8309/926-5963/926-5846 Fax Number 968-4690 audaen@auditor2eneral.ov.1m. September 20, 2019 INDEPENDENT AUDITOR'S REPORT To the Director General Planning Institute of Jamaica GOT/IBRD GRANT AGREEMENT TOFA0433 Planning Institute of lamaica (PIO Improving Climate Data and Information Management Proiect ICDIMP1 For the period April 1. 2018 - March 31. 2019 Opinion I have audited the accompanying Financial Statements of the Improving Climate Data and Information Management Project (ICDIMP), set out on pages 6 to 14, which comprise the Statement of Sources and Uses of Funds, as at March 31, 2019, Statement of Cumulative Investments, Designated Account Reconciliation Statement for the year then ended, and a summary of significant accounting policies and other explanatory notes. In my opinion, the financial statements reflect a fair representation of the transactions of the Project for the period under review and the transactions conformed to the terms of the Grant Agreement and complied with the International Public Sector Accounting Standards (IPSAS) Cash Basis. Basis for Opinion The audit of the Project was conducted in accordance with: * Article 1 Section 2.07 (b) (i) of Standard Conditions of the Grant Agreement between the Government of Jamaica (GOJ) and the International Bank for Reconstruction and Development (IBRD) dated October 2, 2015. * International Standards of Supreme Audit Institutions (ISSAls). My responsibilities under ISSAls are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of this report. My staff and I are independent of the Project in accordance with the International Ethics Standards Board for Accountants Code of Ethics for 2 Professional Accountants (IESBA Code) and we have fulfilled our other ethical responsibilities in accordance with the IESBA Code. I believe that the audit evidence obtained is sufficient and appropriate to provide a basis for my opinion. Key Audit Matters Key audit matters are those matters that, in my professional judgment, were of most significance in my audit of the financial statements of the current period. I have determined that there are no key audit matters to communicate in this report. Management's Responsibility for the Financial Statements The executing agency, the Planning Institute of Jamaica (PIOJ), is responsible for the preparation and fair presentation of these Financial Statements, in accordance with International Public Sector Accounting Standards (IPSAS) Cash Basis. This responsibility includes: designing, implementing and maintaining internal controls, relevant to the preparation and fair presentation of Financial Statements that are free from material misstatement, whether, due to fraud or error; selecting and applying appropriate accounting policies that are reasonable in the circumstances. The PIOJ is also required to present audited Financial Statements to the IBRD. The attached Financial Statements and accompanying notes which are described hereunder were submitted to me by the Project Implementing Unit (PIU) in accordance with Article II Section 2.07 (b) (ii) of the aforementioned Standard Conditions of the GrantAgreement to reflect the transactions of the Project from April 1, 2018 to the close of the financial year at March 31, 2019. Statement 1 Statement of Sources and Uses of Funds Statement 2 Statement of Cumulative Investments Statement 3 Designated Account Reconciliation Notes to the Financial Statements In preparing the Financial Statements, management is responsible for assessing the Project's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless there are plans to liquidate the Project or to cease operations, or has no realistic alternative but to do so. Auditor's Responsibility for the audit of the Financial Statements My responsibility is to express an opinion on these Financial Statements based on my audit I conducted my audit in accordance with the auditing standards issued by the International Organization of Supreme Audit Institutions (INTOSAI). Those standards require that I comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the 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 my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISSAIs 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 ISSAls, I exercised professional judgment and maintained professional scepticism throughout the audit 3 1 also: * Identify and assess the risks of material misstatement of the 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 my 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 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. If I conclude that a material uncertainty exists, I am required to draw attention in the auditor's report to the related disclosures in the Financial Statements or, if such disclosures are inadequate, to modify my opinion. The conclusions are based on the audit evidence obtained up to the date of my 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 Financial Statements, including the disclosures, and whether the Financial Statements represent the underlying transactions and events in a manner that presents a true and fair view. I have communicated with the World Bank regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that was identified during the audit COMPLIANCE WITH APPLICABLE LAWS. REGULATIONS AND FINANCIAL CLAUSES OF THE GRANT AGREEMENT During the period under review, I examined compliance by the Project Implementing Unit of the Executing Agency with the applicable laws and regulations related to the Project's financial activities and with the accounting/financialf management clauses of the Agreement. There was general compliance with following schedules of the Grant Agreement: Article I Section 1.01; 1.02 Standard Conditions; Definitions Article 11 Section 2.01; 2.02 Project Execution Article III Section 3.01; 3:02 Withdrawal of Grant Funds Section 3.03; Grant Proceeds Article IV Section 4.01: Additional Remedies Article V Section 5.01-5.04: Effectiveness; Termination Article VI Section 6.01; 6.02 Recipient's Representative; Addresses 4 OPINION - GENERAL In my opinion, the Project Implementing Unit maintained an adequate accounting system based on separate and clearly identifiable accounts which enabled the recording, monitoring and reporting of the operations and costs under the project in accordance with satisfactory accounting/financial/management practices and standards as required by Article II, Schedule 2- Section II (B) of the Grant Agreement. AuIT oF THE SEaAL BANK ACcouNT I have examined the appended Designated Account Reconciliation Statement, reflecting the movement in the Designated Bank Account for the period ended March 31, 2019. The Designated Bank Account No. 810282 is maintained in United States Dollars in the name of the Ministry of Finance and the Public Service. My examination was made in accordance with the standards of the International Organisation of Supreme Audit Institutions (INTOSAI) and accordingly included such tests of the accounting records and other procedures I considered necessary. OPINION - SPECIAL BANK AccouNT In my opinion, the Designated Account Reconciliation Statement reflects the total amount advanced to the Designated Account at March 31, 2019 as reconciled to the outstanding (undocumented) amount advanced to the account as at March 31, 2019 in conformity with IPSAS Cash Basis and IBRD guidelines. Auditor General of Jamaica Date 5 AUDITOR GENERAL'S DEPARTMENT 40 KNUTSFORD BOULEVARD P-C. BOX 455 KINGSTON 5 JAMAICA Tel. No.: 926-83091926-5963/926-5846 Fax Number: 968-4690 Email: audgen@auditorgeneral.gov rm September 20, 2019 GOI/lBRD GRANT AGREEMENT NO, TF0A0433 Planning Institute of Jamaica (PLOt) Improving Climate Data and Information Management Project (ICDIMP) For the period April 1. 2018- March 31. 2019 AUDIT OF STATEMENTS OF EXPENDITURE (SOE) PROCEDURES In the course of the audit of the Planning Institute of Jamaica (PIOJ) Improving Climate Data and Information Management Project (ICDIMP) for the year ended March 31, 2019, I examined the following statements of expenditure submitted to the IBRD during the financial year and period under review in support of applications for reimbursement of funds from the Grant Account in accordance with the Grant Agreement: Application Number Date Advance Amount (US$) 11 April 5, 2018 183,246.76 12 June 28, 2018 212,246.94 Total 395,493.70 The examination was done in accordance with the generally accepted auditing standards and procedures prescribed by INTOSAl and accordingly, included such tests as the verification of the internal control systems and of the accounting records, tests of the origin and eligibility of expenditures, certification and procurement procedures for services, filing of support documents and such other auditing procedures as I considered necessary in the circumstances. Opinion In my opinion, the statements of expenditure and the annexes submitted in support of them, together with the internal controls procedures used in their preparation can be relied upon to support the applications for reimbursement in conforming to the requirements of the Grant Agreement. Auditor General of Jamaica Date 6 Improving Climate Data and Information Management Project Project / Grant No. (P129633/TOFA0433) Statement of Sources and Uses of Funds For the Year Ended March 31, 2019 Current Year Prior Year Note April 1, 2018 to Cumulative to Cumulative to March 31, 2019 March 31, 2019 March 31,2018 US$ US$ US$ RECEIPTS World Bank Direct Payment 4 395,493.70 1,610,989.94 1,215,496.24 TOTAL RECEIPTS 395,493.70 1,610,989.94 1,215,496.24 EXPENDITURES Component 1: Hydro and agro met equipment and 9376028 805,443.39 711,683.11 spares for MET Service Component 2: Climate Change Scenarios/pathways 27,912.38 228,838.41 200,926.03 (state of JA Climate 2015) Component 3: Climate Change IECC 136,151.88 195,513.27 59,361.39 Component 4: Project Management, monitoring and 138,362.98 337,518.15 199,155.17 Evaluation TOTAL EXPENDITURES 6 396,187.52 1,567,313.22 1,171,125.70 Net Change in Cash (693.82) 43,676.72 44,370.54 Foreign Exchange movement 663.05 1,286.61 623.56 Adjusted Net Cash Movement (30.77) 44,963.33 44,994.10 Opening Cash Balances Designated Account 199.52 Project Account 44,794.58 - - Total Opening Balance 44,994.10 - * Closing Balance Closing Cash Balances represented by: Designated Account 13,640.47 13,640.47 199.52 Project Account 31,322.86 31,322.86 44,794.58 Total Closing Balance 7 44,963.33 44,963.33 44,994.10 Ms. Tanisha Palm Accountant Mr. Lehome Johnson, Project Manager Mr. Kirk Philips, Deputy Direct General The accompanying notes on pages 9-14 form an integral part of these financial statements 7 Improving Climate Data and Information Management Project Project/Grant No. P129633/ TOF0A0433 Statement of Cumulative Investments For the Year Ended March 31, 2019 April 1, 2018 to March 31, 2019 Cumulative to March 31, 2019 March 31, 2018 Category Description US$ US$ US$ Goods, works, non-consulting services 1 Consultants' services and Training 257,824.54 1,229,795.07 971,970.53 2 Operating Costs 138,362.98 337,518.15 199,155.17 Total 396,187.52 1,567,313.22 1,171,125.70 Ms. Taniha Palmer, Project Accountant Mr. Lehome Johnson, Project Manager Mr. Kirk Philips, Deputy Direc r General The accompanying notes on pages 9-14form an integral part of these financial statements 8 Improving Climate Data and Information Management Project Project / Grant No. (P129633/TOFA0433) Designated Account Reconciliation Statement For the Year Ended March 31, 2019 DESIGNATED ACCOUNT RECONCILIATION STATEMENT US$ NOTE 1 TOTAL ADVANCED BY WORLD BANK (OR COFINANCIER) 1,610,989.94 2 LESS: TOTAL AMOUNT DOCUMENTED BY WORLD BANK 1,411,993.89 3 PRESENT OUTSTANDING AMOUNT ADVANCED TO THE DESIGNATED ACCOUNT (1-2) 198,996.05 BALANCE OF USD DESIGNATED ACCOUNT PER BANK RECONCILIATION 13,640.7 4 STATEMENT AS AT PERIOD END March 31, 2019 BALANCE OF PROJECT ACCOUNT PER BANK RECONCILIATION STATEMENT 3132286 AS AT PERIOD END March 31,2019 PLUS: ELIGIBLE EXPENDITURE FOR THE CURRENT YEAR DOCUMENTED AFTER THE PERIOD END _March 31, 2019. (WA # 15 and 16) 155,319.33 8 6 PLUS: TOTAL AMOUNT WITHDRAWN AND NOT YET CLAIMED REASON: PLUS: AMOUNTS CLAIMED IN PREVIOUS APPLICATIONS NOT YET CREDITED AT DATE OF BANK STATEMENTS APPLICATION NO. WA # XXX WA # XX SUBTOTAL OF PREVIOUS APPLICATIONS NOT YET CREDITED 8 LESS: INTEREST EARNED (631.26) 9 TOTAL ADVANCE ACCOUNTED FOR (NO.4 THROUGH NO.9) 199,651.40 10 DIFFERENCE (3 - 9) 655.35 Explanation of Difference Shown in Line 10 The difference of $655.35 represents foreign exchange variation during the year. Ms. Tanisha Palmer, Project Accountant Mr. Lehome son, Project Manager Mr. Kirk Philips, Deputy Director neral The accompanying notes on pages 9-14 form an integral part of these financial statements 9 Improving Climate Data and Information Management Project Project / Grant No. (P129633/TOFA0433) Notes to Financial Statements For the period ended March 31, 2019 1. IDENTIFICATION On October 2, 2015, the Government of Jamaica (GOJ) and the International Bank for Reconstruction and Development (World Bank) signed grant agreement number TOFA0433 for US$6,800,000, which became effective on December 14,2015 and has an end date of April 30, 2021. Resources of this agreement are to fund the activities of the Improving Climate Data and Information Management Project, which is being implemented by the Planning Institute of Jamaica (PlOJ), through the Project Implementation Unit The P10) will also partner with other Government Agencies including the Ministry of Health, Met Service Jamaica, Water Resources Authority, Office of Disaster Preparedness and Emergency Management, National Spatial Data Management Division, and Rural Agricultural Development Agency in implementing the various components. Project Objectives The objective of the Improving Climate Data and Information Management Project (ICDIMP) is to improve the quality and use of climate data for effective planning and action at the local and national levels. The ICDIMP is funded by the Climate Investment Funds under the Pilot Programme for Climate Resilience (PPCR) through the World Bank and is one of a suite ofprojects bringing life to Jamaica's Strategic Programme for Climate Resilience developed earlier under the first phase of the PPCR. Project Components The ICDIMP consists of the following parts: Part 1: Upgrading Hydro-meteorological Data Collection, Processing and Forecasting Systems. Carrying out activities to upgrade existing and/or provide new systems for hydrometeorological data collection, processing and forecasting, including, inter alia: 1.1 supplying and installing equipment for sea-level monitoring, meteorological, hydrological and agro-meteorological activities, provision of Training for staff of MSJ, WRA and RADA on their operation and maintenance; and purchasing of spare parts; 1.2 rehabilitating the Coopers Hill Station Facility including replacing the Doppler Radar and provision of Training to MSJ staff on its operation and maintenance; and 1.3 strengthening the capacity of staff of MSJ, WRA and RADA on data management, quality assurance of data collection, and weather forecasting through provision of consulting services and Training. 10 Improving Climate Data and Information Management Project Project / Grant No. (P129633/TOFA0433) Notes to the Financial Statements For the period ended March 31, 2019 Part 2: Climate Resilient Planning and Hydro-meteorological Information Services Provision of technical assistance to promote the Recipient's readiness for climate resilience including inter alia through: 2.1 updating the downscaled high resolution climate change scenarios and using said scenarios to prepare the State of the Jamaican Climate 2015 and 2019 reports (including the summary for policy makers); and provision of Training on sector specific climate resilience planning; 2.2 preparing national vulnerability assessments in selected priority sectors to complement the modeling output in 2.1 above and to define priorities and actions on climate resilience; 2.3 preparing detailed Health Sector Vulnerability Assessments and costed resilience strengthening plans to assist health facilities and operations withstand and respond to climate related hazards; 2.4 carrying out Community-based Risk Profiling to assess the communities' vulnerability to various climate related hazards and develop early warning messaging for vulnerable groups; and 2.5 upgrading the Multi-agency Climate and Natural Risk Data and Information Sharing System to integrate climate data, and making the data user friendly and accessible to the public. Part 3: Climate Change Education and Awareness towards Behavioural Change Provision of technical assistance to promote climate change awareness at the national and local level through: 3.1 carrying out climate change information, education and communication campaigns; and 3.2 conducting targeted attitude and behavioral change initiatives. Part 4: Project Management, Monitoring and Evaluation Provision of support to PIOJ for Project implementation including financial management, procurement, environmental and social safeguards implementation, monitoring and evaluation and supervision of Project activities. 11 Improving Climate Data and Information Management Project Project / Grant No. (Pl29633/TOFA0433) Notes to the Financial Statements For the period ended March 31, 2019 MANAGEMENT REPORT The Annual Report is submitted by management for Improving Climate Data and Information Management Project for the period April 1, 2018 to March 31, 2019. AUDITING OF THE PROJECT The Project is currently audited by the Auditor General's Department. The Auditors, Auditor General's Department, 40 Knutsford Boulevard, Kingston 5, Jamaica. 1. The Budget This is the amount allocated based on the Government of Jamaica Estimates of Expenditures. 2. Categories of Expenditures All goods, works, non-consulting services and consultants' services required for the Project and to be financed out of the proceeds of the Grant shall be procured in accordance with the requirements. One hundred percent of eligible expenditures falling within this category are financeable by the World Bank grant. Except where otherwise stated, these financial statements are presented in United States Dollars (US$) and includes only cash receipts and payments of the ICDIMP. The Project has a Designated Special Account for the grant finding, which is maintained at the Bank of Jamaica. 12 Improving Climate Data and Information Management Project Project/ Grant No. (P129633/TOFA0433) Notes to the Financial Statements For the period ended March 31, 2019 3. Summary of Accounting Policies The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied during the financial year ended March 31, 2019. 1) Basis of Preparation The Project Implementing Unit (PIU) uses the cash basis of accounting to account for the project's transactions and these financial statements have been prepared in accordance with International Public Sector Accounting Standards (IPSAS) Cash Basis. Under this basis, income is recognized when funds are received rather than when earned and expenses are recognized when payment is made rather than when obligations are incurred. Since the main objective of these financial statements is to disclose the sources and uses of funds, it is not necessary to present information adjusted for inflation. II) Recording of Transactions Transactions are recorded in dual currency. As the grant is denominated in US dollars, for preparation of the financial statements, US dollar is used. Expenditures in local currency are translated into US dollars, by applying the Central bank rate on the day of the expenditure. III) Fluctuation rate and fees All fees and charges for un-disbursed grant funds, as well as losses due to exchange rate fluctuations are not considered eligible project costs and are set off against interest earned on bank accounts or absorbed by the Government of Jamaica. IV) Equipment and other fixed assets Equipment and other fixed assets procured with project resources are recorded at their acquisition cost at the date of purchase. Depreciation is not charged on these assets and is also not reflected in these financial statements. V) Exchange Rate for the period Expenses paid from the Jamaican dollar project account held with CIBC First Caribbean International Bank, were converted by applying the exchange rate at which the commercial bank transferred funds from the Special Bank account to the local Administrative bank account. 13 Improving Climate Data and Information Management Project Project / Grant No. (P129633/TOFA0433) Notes to the Financial Statements For the period ended March 31, 2019 4. Disbursement Request Disbursement Request Disbursement Amount Date Number US$ April 5, 2018 11 183,246.76 June 28, 2018 12 212,246.94 Total 395,493.70 This represents the total advances issued by the World Bank for the period ending March 31, 2019. The undisbursed balance of the World Bank grant as at March 31, 2019 is US$5,189,010.06. 5. Source of Funds The amount of US$395,493.70 was received from the World Bank for the period under review. 6. Use of Grant Funding Total funds invested during the period amounts to approximately US$396,187.52 (cumulatively US$1,567,313.22). 7. Cash availability The cash available as at March 31, 2019, as expressed in United States dollars is: Bank Accounts Total Cash Available US$ Special Account (Account # 810282) 13,640.47 Administrative Account (Account # 1002190623) 31,322.86 1_ 44,963.33 Designated Bank Account No. 810282 and Project Administrative Bank Account Number 1002190623. This Special Account is the Designated Account operated by the Bank of Jamaica for the disbursement of grant funds. Funds disbursed by the World Bank for the Project is directly transferred to this account. 14 Improving Climate Data and Information Management Project Project / Grant No. (P129633/TOFA0433) Notes to the Financial Statements For the period ended March 31, 2019 8. Expenditures pending Justification The information below represents the SOEs pending submission to the World Bank to document expenditure incurred from special account #810282 during the period of the audit: Form e2380 - Documented Expenditure Application Number (US$] 15 98,746.08 16 56,573.25 TOTAL 155,319.33 9. Fixed Assets The total non-current assets at March 31, 2019 were US$850,685.99. See details in tables below. Motor Computer Equipment Vehicles Fencing Total US$ US$ Us$ US$ USS Cumulative balance as at March 31, 2018 2,183.66 687,160.76 76,500.57 46,019.59 811,864.58 April 1, 2018 - March 31, 2019 34,160.80 2,813.69 - 1,846.92 38,821.41 Cumulative as at March 31, 2019 36,344.46 689,974.45 76,500.57 47,866.51 850,685.99