REPUBLIC OF KENYA OFFICE OF THE AUDITOR-GENERAL REPORT WORLD BANK IE3RD / IDA 1 JAN 2019 OF R iEAE Financial Management Unit THE AUDITOR-GENERAL ON THE FINANCIAL STATEMENTS OF KENYA INFORMAL SETTLEMENT IMPROVEMENT PROJECT CREDIT NO.4873-KE (IDA) FOR THE YEAR ENDED 30 JUNE 2018 STATE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT PROJECT NAME: KENYA INFORMAL SETTLEMENT IMPROVEMENT PROJECT IMPLEMENTING ENTITY: STATE DEPARTMENT FOR HOUSING AND URBAN DEVELOPMENT PROJECT ID: P113542 CREDIT NUMBER: 4873 ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED JUNE 30, 2018 Prepared in accordance with the Cash Basis of Accounting Method under the International Public Sector Accounting Standards (IPSAS) 'Kenya Informal Settlement Improvement Project Reports and Financial Statements For the financial year ended June 30, 2018 CONTENTS PAGE 1. PROJECT INFORMATION AND OVERALL PERFORMANCE............................................................................... i 2. STATEMENT OF PROJECT MANAGEMENT RESPONSIBILITIES......................................................................ix 3. REPORT OF THE INDEPENDENT AUDITORS ON THE KISIP PROJECT ............................................................x 4. STATEMENT OF RECEIPTS AND PAYMENTS FOR THE PERIOD ENDED 30TH JUNE 2018.........................1 5. STATEMENT OF FINANCIAL ASSETS AS AT 30TH JUNE 2018 ......................................................................... 2 6. STATEMENT OF CASHFLOW FOR THE PERIOD 30TH JUNE 20 8.................................................................... 3 7. STATEMENT OF COMPARATIVE BUDGET AND ACTUAL AMOUNTS...........................................................4 8. N OTES TO TH E FIN AN CIA L STA TEM EN TS .......................................................................................................... 5 9. O TH ER IM PO R TA N T D ISC LO SU R ES .................................................................................................................... 21 10. PROGRESS ON FOLLOW UP OF AUDITOR RECOMMENDATIONS.............................................................22 Kenya Jnfornal Settlement Improvement Project Reports and Financial Statements For the financial year ended June 30, 2018 1. PROJECT INFORMATION AND OVERALL PERFORMANCE 1.1 Name and registered office Name: The project's official name is Kenya Informal Settlement Improvement Project. Objective: The key objective of the project is to improve living conditions of informal settlements in selected Counties in Kenya. Address: The project headquarters office is located in Nairobi County, Kenya. The address of its registered office is: Ardhi House, Ist Ngong Avenue, Nairobi Contacts: The following are the project contacts: P. 0. Box 30119, 00100 Nairobi 1.2 Project Information Project Start Date: The project start date is 01.07.2011 Project End Date: The project end date is 30 11 2019 Project Manager: The project manager is Mrs Peris Mang'ira. Project Sponsor: The project sponsor is IDA, AFD, SIDA and GoK. 1.3 Project Overview Line Ministry/State The project is under the supervision of the State Department for Department of the project Housing and Urban Development. Project number P1 13542,TF:18327 Strategic goals of the The strategic goals of the project are as follows: project (i) Strengthening institutions and programme management (ii) Enhancing tenure security (iii) Investing in infrastructure and service delivery (iv) Planning for urban growth Achievement of strategic The project management aims to achieve the goals through the goals following means: (i) Strengthening institutions and programme management; (ii) Enhanced land tenure; (iii) Building of roads, floodlights, water and sewerage, and waste 1 Kenya Informal Settlement Improvement Project Reports and Financial Statements For the financial year ended June 30, 2018 management; (iv) Extensive studies and planning on preventing informal settlements in future Other important The project completed its third year of implementation. background information of the project Current situation that the The project was formed to intervene in the following areas: project was formed to (i) lack of security of tenure intervene (ii) lack of physical infrastructure e.g. roads, foot paths, lighting, water, sewer and waste disposal Project duration The project started on 1st July 2011 and is expected to run until 30 June 2016. The time was extended to May 2018 1.4 Bankers The following are the bankers for the current year: Designated account: Equity Bank Limited Head Office, Equity Centre Branch Account No. 0810295112857 Project Account: Cooperative Bank of Kenya Upper Hill Branch Account No. 01141161460400 Auditors Auditor General Kenya National Audit Office Anniversary Towers, University Way P.O. Box 30084 1.5 Project Governance The Project's governance framework requires the stakeholders to uphold the highest professional, ethical, moral and legal staidards. This is achieved through effective segregation of duties with clear checks and balances as articulated in the Project Loan/Credit Agreement, the PFM Act, 2012, the Project Design Report, the Implementation Manual and the Finance and Procurement Manuals. 1. The Project Steering Committee (PSC) This Committee is responsible for overseeing the implementation of the Project, approving the annual work plan and budget, and ensuring that the activities are in compliance with the donor and government policies. ii Kenya Informal Settlement Improvement Project Reports and Financial Statements For the financial year ended June 30, 2018 2. International Development Association These are the project sponsors. They are responsible for reviewing and approving the project's withdrawal applications, expenditure justifications, no objection requests, reviewing and approving the annual work plan and budget, expenditure category reallocation request, and participating in implementation support missions. 3. The Parent Ministry The parent ministry ensures that the Project's budget is captured in its development projects and disburses the government counterpart funding. The ministry reviews and tracks the Project's annual work plan and budget against the set targets and makes the approvals. The parent ministry also oversees the execution of the project coordinating team. 4. The Auditor The Supreme Audit Institution in Kenya, that is, the Office of the Auditor General, is mandated by the Constitution of Kenya Chapter 12, Part 6, Article 229 which establishes the Office of the Auditor General. Chapter 15, Article 248, Section 3 and Article 249, Section 2 (a) and (b) and section 10 of the Public Audit Act, 2015 provide for the independence of the Office of the Auditor General. The Auditor General is mandated to audit all national government entities, which include government development projects and present these statutory financial statements to the Parliament. This facilitates the submission of the audited report to the project's sponsors by 31 December each year. 1.6 Roles and Responsibilities This team is based in Nairobi and is responsible for the project management and coordination functions. The PCT comprises of the Project Coordinator and a team of Technical Officers. The PCT is also supported by other administrative staff. These key staff, who form the project coordinating team that is involved in the day to day management of the project and its implementation are: Names Title designation Key qualification Responsibilities Peris Mang'ira Project Coordinator Physical Planner Overall programme coordination. Stella Gitimu Head of Component 1 Quantity Surveyor Manage component I activities George Arwa Head of Component 2 Surveyor Manage component 2 activities Julius Mugwika Head of Component 3 Architect Manage component 3 activities iii Kenya Informal Settlement Improvement Project Reports and Financial Statements For the financial year ended June 30, 2018 Names Title designation Key qualification Responsibilities Cassius Kusienya Deputy Projeet Quantity Surveyor Manage component Coordinator and Head 4 activities of Component 4 Wagura Theuri Project Accountant BA (Econ), CPA(K) Financial Management 1.7 Funding summary The Project duration is five years (from 2011 to 2017) with a further extension to November 2019. The financing budget of US$ 157.3 Million equivalent to KES 15 Billion as highlighted in the table below: Below is the funding summary: (i) Grant SIDA $ 8,300,000 847,179,454 8,300,000 847,179,454 0 0 (ii) Loan IDA $100,000,000 9,246,336,439 95,769,644 9,233,836,439 120,000 12,000,000 e35,000,000/ AFD $40,000,000 4,000,000,000 5,320,000 534,660,000 34,680,000 3,465,340,000 (iii) Counterpart funds Government 8,374,458 759,058,301 1,625,542 140,941,699 of Kenya $10,000,000 900,000,000 Total 158,300,000 14,993,515,893 117,764,102 11,374,734,194 36,425,542 3,618,281,699 1.8 Summary of Overall Project Performance: 1.8.1 Budget performance against actual amounts for current year and for cumulative to- date, During the year under review, the Project received KShs 3,168,476,767 and incurred expenditure of KShs 3,261,780,686. The cumulative receipts and expenditures are Kshs. 11,374,734,194 and Kshs. 10,577,796,564 respectively. iv Kenya Informal Settlement Improvement Project Reports and Financial Statements For the financial year ended June 30, 2018 Receipts & Payments Utilization Revenue Utilisation Bar Graph 3,000,000,000 Receipts in Kshs Million 2 ,640 2,500,000,000 2,000,000,000 Final Budget 1,500,000,000 1,500,000,000 'Actual on 1,000,000,000 Comparable 540,000,00639,923,936 Basis 500,000,000 - 222,794,00174,880,000 Proceeds from Domestic Receipts from Loan from External Miscellaneous receipts and Foreign Grants Government of Kenya Development Partners Payment Utilization Bar Graph 3,500,000,000 Payments 3,000,000,000 Fina Budget in Kshs Million 2,500,000,000 12,000,000,000 1,500,000,0009 1,000,000,000 93,303,918- 500,000,000 - 93,500,000 -0000,00- Compensation Use of goods Transfers to Other Grants Social Security Acquisition of of employees and services Other and Other Benefits Non-financial Government Payments Assets Entities 1.8.2 Highlights of project performance on the Results Framework The KISIP results framework consists of six (6) indicators to measure changes at the project development objective level, or the level of impact indicators provide evidence of performance at intermediate level of the project, which is the level of production of various project outputs. This section presents progress made towards achieving project outcomes at the two levels. The main data sources are the socioeconomic survey reports, supervising consultants' reports, data sources based on v Kenya Informal Settlement Improvement Project Reports and Financial Statements For the financial year ended June 30, 2018 procurement, financial information, project meetings, and field monitoring and evaluative exercises. A clarification of the Results Framework was done during the November -December 2015 World Bank/KISIP Mission and subsequently formed part of the KISIP restructuring paper in March 22nd 2016. This made it possible for more accurate reporting of the achievements by KISIP. Project development objective and the expected outcomes The project development objective, PDO was revised following the additional financing to improve living conditions in informal settlements in selected urban centers in selected counties in Kenya. Data on these indicators will be issued progressively as KISIP completes infrastructure investments under construction. Preliminary data and findings for the reporting period are presented below. However, direct and indirect beneficiaries continue to be determined as projects get completed and reported on accordingly. a. People benefiting ftom improved tenure security (number); Under KISIP 86 settlements are at various stages of tenure regularization under Lots 1, 3 & 4 contracts which will have 70,000 people as direct project beneficiaries from tenure. b. Direct project beneficiaries (number,); A total of 1,069,609 people are benefitting from tenure and infrastructure components of KISIP. This is because some infrastructure services target similar audiences - water connections, sewer connections, high mast lighting and roads. c. Female beneficiaries (percentage, core supplement); The project has endeavoured in its infrastructure and tenure options to ensure gender parity in projects. Currently, 534, 805 number of females, translating to 50% of females are benefitting from KISIP projects; this has been validated by socioeconomic surveys by various components. d. People in informal settlements provided with access to improved drainage infrastructure under KISIP (Number). Access to drainage facilities were prioritised by communities in all Counties owing to constant flooding and need for storm water management; storm water drainage canals were constructed in Mombasa, Embu, Kericho, Kitui, Kisumu, Eldoret, Nakuru, Machakos, Naivasha and Nairobi. This has benefitted approximately 825,544 people in these urban areas. e. Number of People in urban areas provided with access to all-season roads within a 500-meter range under KISIP (number). Investments in access road network consist of settlement main access roads connecting the settlements and trunk roads, settlement roads providing access within the settlements, walkways and footpaths. In 2016/2017 FY, 43.41 km of settlement access roads and 41.5 km of footpaths constructed benefitting 700,000 people. f Number of people in urban areas provided with access to improved water sources under KISIP (number). vi Kenya Informal Settlemneit Improvement Project Reports and Financial Statements For the financial year ended June 30, 2018 Construction of 109.929km of water pipeline has been completed with 7,286 water connections done to date; 11 Water Kiosks have been constructed in providing additional access to water. This has enabled 107,040 people to have access to water sources which are safe and clean. 226,000 people. 14 ablution blocks have been done and the remaining 7 in Eldoret are almost done. Implementation challenges and recommended way forward Issue/challengeL Lesson Recomnmenda-ion 1. Complex tenure security Interpretation of KISIP national team is taking arrangements and operational legislation on roles and a more active role in delays occasioned by changes responsibilities of key supervision in land surveying information actors in land management Involvement of the relevant continue to negatively county officials in affect delivery of results. identification and verification of list of beneficiaries. 2. Lack of clearly defined Effective engagement of Continuous engagement of engagement strategy as a County teams in planning the various counties and result of constitutional phases of the project communities in the transition. This resulted in the remaining time. envisaged municipal agreements not to be signed. In effect: a. Counties do not have clearly defined roles and work-plans for KISIP activities. b. Engagement with Counties has remained loose and is not tied to concrete performance standards. vii Kenya Informal Settlement Improvement Project Reports and Financial Statements - For the financial year ended June 30, 2018 Essue/ciallenge eson Recommendation 3. Delayed preparation of Consultants hired to The project's social Resettlement Action Plan undertake the RAPs. Safeguards and Community (RAP) for planning and survey Development Experts to ensure consultants prepare a well-documented disclosure and resettlement action plan for implementation. KISIP has a social safeguards mechanism that works effectively to avoid conflicts 1.9 Summary of Project Compliance: The Program has ensured that all its activities carried out are within the laws of the Republic of Kenya and that all regulations and procedures have been followed. Among the regulations include the Environmental and Social Impact Assessment (ESIA) for which authority was issued for the implementation of the project. In cases of inconsistency between the GOK Regulations and those of the donors, the latter have been applied. Viii Kenya Informal Settlement Improvement Project Reports and Financial Statements For the financial year ended June 30, 2018 2. STATEMENT OF PROJECT MANAGEMENT RESPONSIBILITIES The Principal Secretary for the State Department for Housing and Urban Development and the Project Coordinator for Kenya Informal Settlement Improvement Project are responsible for the preparation and presentation of the project's financial statements, which give a true and fair view of the state of affairs of the project for and as at the end of the quarter ended on June 30, 2018. This responsibility includes: (i) maintaining adequate financial management arrangement and ensuring that these continue to be effective throughout the reporting period; (ii) maintaining proper accounting records, which disclose with reasonable accuracy at any time the financial position of the project; (iii) designing, implementing and maintaining internal controls relevant to the preparation and fair presentation of the financial statement, and ensuring that they are free from material misstatements, whether due to error or fraud; (iv) safeguarding the assets of the project; (v) selecting and applying appropriate accounting policies; and (vi) making accounting estimates that are reasonable in the circumstances. The Principal Secretary for the State Department for Housing and Urban Development and the Project Coordinator for Kenya Informal Settlement Improvement Project accept responsibility for the project's financial statements, which have been prepared on the Cash Basis Method of Financial Reporting, using appropriate accounting policies in accordance with International Public Sector Accounting Standards. The Principal Secretary for the State Department for Housing and Urban Development and the Project Coordinator for Kenya Informal Settlement Improvement Project are of the opinion that the project's financial statements give a true and fair view of the state of project's transactions during the financial period ended March, 2018, and of the project's financial position as at that date. The Principal Secretary for State Department for Housing and Urban Development and the Project Coordinator for Kenya Informal Settlement Improvement Project further confirm the completeness of the accounting records maintained for the project, which have been relied upon in the preparation of the project financial statements as well as the adequacy of the systems of internal financial control. The Principal Secretary for the State Department for Housing and Urban Development and the Project Coordinator for Kenya Informal Settlement Improvement Project confirm that the project has complied fully with applicable Government Regulations and the terms of external financing covenants, and that project funds received during the financial year under audit were used for the eligible purposes for which they were intended and were properly accounted for. Approval of the Project financial statements The Project financial statements were approved by the Principal Secretary for the State Department for Housing and Urban Development and the Project Coordinator for Kenya Informal Settlement Improvement Projec on (I c' . y , 2018 and signed by them. Principal Secretary ject Coordinator Project Accountant: Name: Charles H. Mwaura Name Peris Mang'ira Name: Wagura Theuri ICPAK No: 13047 Ix REPUBLIC OF KENYA Telephone: +254-20-342330 P.O. Box 30084-00100 Fax: +254-20-311482 E-mail: oag@oagkenya.go.ke NAIROBI Website: www.kenao.go.ke OFFICE OF THE AUDITOR-GENERAL REPORT OF THE AUDITOR GENERAL ON KENYA INFORMAL SETTLEMENT IMPROVEMENT PROJECT CREDIT NO.4873-KE (IDA) FOR THE YEAR ENDED 30 JUNE 2018 - STATE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT REPORT ON THE FINANCIAL STATEMENTS Opinion I have audited the accompanying financial statements of Kenya Informal Settlement Improvement Project IDA Credit No.4873-KE set out on pages 1 to 22 which comprise the statement of financial assets and liabilities as at 30 June 2018, and the statement of receipts and payments, the statement of cash flows and the statement of comparison of budget and actual amount for the year then ended and a summary of significant accounting policies and other explanatory information in accordance with provisions of Article 229 of the Constitution of Kenya, Section 35 of the Public Audit Act, 2015 and the Financing Agreements No. 4873-KE dated 23 May,2011 between the International Development Association (IDA) and the Government of the Republic of Kenya (GoK) . I have obtained all the information and explanations which to the best of my knowledge and belief were necessary for the purpose of the audit. In my opinion, the financial statements present fairly, in all material respects, the financial position of the Project as at 30 June 2018 and of its financial performance and its cash flows for the year then ended, in accordance with International Public Sector Accounting Standards (Cash Basis) and conforms to the Financing Agreements No. 4873-KE dated 23 May 2011. In addition, the Special Account Statement present fairly, the special accounts transactions and closing balance has been reconciled with the books of account Basis for Opinion The audit was conducted in accordance with International Standards of Supreme Audit Institutions (ISSAls). I am independent of State Department of Housing and Urban Development Management in accordance with ISSAI 30 on Code of Ethics. I have fulfilled other ethical responsibilities in accordance with the ISSAI and in accordance with other ethical requirements applicable to performing audits of financial statements in Kenya. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion. Key Audit Matters Key audit matters are those matters that, in my professional judgement, were of most significance in the audit of the financial statements. There were no Key Audit Matters to report in the year under review. Report ofthe Auditor-General on the Financial Statements ofKenya Infbrmnal Settlement Improvement Project (IDA Credit No.4873-KEJbr the year ended 30 June 2018-State Department ofHousing and Urban DP g anornent Promoting Accountability in the Public Sector Report on Compliance with Lawfulness and Effectiveness in Use of Public Money As required by Article 229(6) of the Constitution, based on the procedures performed, I confirm that, nothing has come to my attention to cause me to believe that public money has not been applied lawfully and in an effective way. Report on Internal Controls Effectiveness, Governance and Risk Management As required by Section 7(1) (a) of the Public Audit Act,2015, based on the procedures performed, I confirm that, nothing has come to my attention to cause me to believe that internal controls, risk management and overall governance were not effective Responsibilities of Management and Those Charged with Governance for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with International Public Sector Accounting Standards (Cash basis) and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is responsible for assessing the Project's ability to continue sustaining services, disclosing as applicable, matters related to sustainability of services and using the going concern basis of accounting unless the management either intends to cease operations of the project, or have no realistic alternative but to do so. The management is also responsible for the submission of its financial statements to the Auditor-General in accordance with the provisions of Section 47 of the Public Audit Act, 2015. Those charged with governance are responsible for overseeing the Project's financial reporting process. Auditor General's Responsibilities for the Audit of the Financial Statements The audit objectives are 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 in accordance with the provisions of Section 48 of the Public Audit Act, 2015 and submit the audit report in compliance with Article 229(7) of the Constitution of Kenya. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISSAls 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. Report of the Auditor-General on the Financial Statements of Kenya Informal Settlement Inprovement Project (IDA Credit No. 4873-KEfor the year ended 30 June 2018-State Department of Housing and Urban Development 2 As part of an audit in accordance with ISSAls, I exercise professional judgement and maintain professional scepticism throughout the audit. I 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 the reasonableness of accounting estimates and related disclosures made by the management. * Conclude on the appropriateness of the 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. My conclusions are based on the audit evidence obtained up to the date of my audit 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 achieves fair presentation. * Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities to express an opinion on the financial statements. * Perform such other procedures I consider necessary in the circumstances. I 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 are identified during the audit. I also provide management with a statement that I have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on my independence, and where applicable, related safeguards. Report ofthe Auditor-General on the Financial Statements of Kenya Informal Settlement Improvement Project (IDA Credit No. 4873-KEfor the year ended 30 June 2018-State Department of Housing and Urban Development REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS As required by the International Development Association, I report based on my audit that:- i. I have obtained all the information and explanations which, to the best of my knowledge and belief, were necessary for the purpose of the audit. ii. In my opinion, adequate accounting record have been kept by the project, so far as appears from the examination of those records; and, iii. The project's financial statements are in agreement with the accounting record and returns. FCPA Edward R. 0. Ouko, CBS AUDITOR-GENERAL Nairobi 19 December 2018 Report of the A uditor-General on the Financial Statements of Kenya Infbrmal Settlement Improvement Project (IDA Credit No. 4873-KEfbr the year ended 30 June 2018-State Department ofHousing and Urban Development 4 Kenya Infbrmal Settlement Improvement Project Reports and Financial Statements For the financial year ended June 30, 2018 4. STATEMENT OF RECEIPTS AND PAYMENTS FOR THE PERIOD ENDED 30TH JUNE 2018 Cumulative Note to-date 2017/18 2016/17 (Restated) Receipts and Payments Receipts and Payments payments made by payment made by controlled by third controlled by third the entity parties the entity parties I KShs KShs KShs KShs KShs RECEIPTS Transfer from 8.3 180,000,000 Government entities 174,880,000 - 759,058,301 Proceeds from domestic 8.4 307,255,518 and foreign grants 539,923,936 - - 847,179,454 Loan from external 8.5 2,101,594,852 development partners 2,440,365,640 - - 9,768,496,439 Miscellaneous receipts 8.6 - - 134,528,672 TOTAL RECEIPTS 3,155,169,576 - 2,588,850,370 - 11,509,262,866 PAYMENTS Compensation of 8.7 employees - Purchase of goods and 88 106,257,925 services 93,303,918 - 465,326,533 Social security benefits 8.9 - Acquisition of non- 8.10 2,450,440,509 financial assets 3,168,476,767 - 9,739,198,028 Transfers to other 86,827,439 government entities 8.11_ - 373,272,002 Other grants and 8.12 transfers and payments -- - TOTAL PAYMENTS 3,261,780,686 - 2,643,525,873 - 10,577,796,564 SURPLUS/(DEFICIT) (106,611,110) (54,675,503)- The accounting policies and explanatory notes to these financial statements are an integral part of the financial statements. Prii cipal Secretary oject Coordinator Project Accountan: Name: Charles H. Mwaura ame: Peris Mang'ira Name: WagUra Theuri ICPAK No: 13047 1 Kenya Informal Settlement Improvement Project Reports and Financial Statements For the financial year ended June 30, 2018 5. STATEMENT OF FINANCIAL ASSETS AS AT 30TH JUNE 2018 Note 2017/18 2016/17 KShs KShs FINANCIAL ASSETS Cash and Cash Equivalents Bank Balances 8.13.A 656,289,681 762,900,791 Cash Balances 8.13.B - - Cash Equivalents (short-term deposits) 8.13.C - Total Cash and Cash Equivalents 656,289,681 762,900,791 Accounts receivables - Imprest and Advances 8.14 0 0 TOTAL FINANCIAL ASSETS 656,289,681 762,900,791 REPRESENTED BY Fund balance b/fwd 8.15 762,900,791 817,576,294 Prior year adjustments 8.16 - - Surplus/(Deficit) for the year (106,611,110) (54,675,503) NET FINANCIAL POSITION 656,289,681 762,900,791 The accounting policies and explanatory notes to these financial statements form an integral part of the financial statements. The financial statements were approved on J(M ke 2018 and signed by: Pr cipal Secretary ject Coordinator Project Accountant: Name: Charles H. Mwaura aime: Peis Mang'ira Nane: Wagura Theuri ICPAK No: 13047 2 Kenya Informal Settlement Improvement Project Reports and Financial Statements For the financial year ended June 30, 2018 6. STATEMENT OF CASHFLOW FOR THE PERIOD 30TH JUNE 2018 2017/18 2016/17 Note KShs KShs Receipts for operating activities Transfer from Government entities 8.3 174,880,000 180,000,000 Proceeds from domestic and foreign grants 8.4 539,923,936 307,255,518 Miscellaneous receipts 8.6 Payments for operating activities Compensation of employees 8.7 Purchase of goods and services 8.8 (93,303,918) (106,257,925) Social security benefits 8.9 Transfers to other government entities 8.11 (86,827,439) Other grants and transfers 8.12 Adjusted for: Change in Imprests & Advances Adjustments during the year 8.16 Net cash flow from operating activities 621,500,017 294,170,154 CASHFLOW FROM INVESTING ACTIVITIES Acquisition of Assets 8.10 (3,168,476,767) (2,450,440,509) Net cash flows from Investing Activities (3,168,476,767) (2,450,440,509) CASHFLOW FROM BORROWING ACTIVITIES Proceeds from Foreign Borrowings 8.5 2,440,365,640 2,101,594,852 Net cash flow from financing activities 2,440,365,640 2,101,594,852 NET INCREASE IN CASH AND CASH EQUIVALENT (106,611,110) (54,675,503) Cash and cash equivalent at BEGINNING of the year 762,900,791 817,576,294 Cash and cash equivalent at END of the year 656,289,681 762,900,791 The accounting policies and explanatory notes to these financial statements form an integral part of the financial statements. The entity financial statements were approved on \ 2018 and signed by: Principal Secretary r ject Coordinator Project Accountant: Name: Charles H. Mwaulra Name: Peis Mang'ira Name: Wagura Theuri ICPAK No: 13047 Kenya Informal Settlement Improvement Project Reports and Financial Statements For the financial year ended June 30, 2018 7. STATEMENT OF COMPARATIVE BUDGET AND ACTUAL AMOUNTS Actual on Budget % of Original Adjustment Comparable Utilization Utilizatio Receipts/Payments Item Budget s Final Budget Basis Difference n a b c=a+b d e=c-d f-d/c % Receipts Transfer from Government 260.000,000 -37.206,000 222,794,000 174.880.000 47.914,000 78% entities Proceeds from domestic and - 540.000,000 540,000000 539.923.936 76,064 100% foreign grants Proceeds fi-om borTowings 2.500.000,000 - 2-500,000,000 2,440,365.640 59,634.360 98% Miscellaneous receipts - - - - 0% Total Receipts 2,760,000,000 502,794,000 3,262,794,000 3,155,169,576 59,710,424 97% Payments Compensation of employees 0% Purchase of goods and 130,706,000 -37,206,000 93,500,000 93,303,918 196,082 100% services Social security benefits - - - - - 0% Acquisition of non-financial 2,629,294,000 540,000,000 3,169,294,000 3,168,476,767 817,233 100% assets Transfers to other 0% government entities Other grants and transfers - - - - - 0% Total Payments 2,760,000,000 502,794,000 3,262,794,000 3,261,780,686 1,013,314 100% Note: The significant budget utilisation/performance differences in the last column are explained in Annex 1 to these financial statements. rincipal roject Coordinator Project Accountant: Name: Charles H. Mwaura Name: Peris Mang'ira Name: Wagura Theuri ICPAK No: 13047 4 Kenya Infrmal Settlement Improvement Project Reports and Financial Statements For the financial year ended June 30, 2018 8. NOTES TO THE FINANCIAL STATEMENTS The principal accounting policies adopted in the preparation of these financial statements are set out below: 8.1. Basis of Preparation 8.1.1. Statement of compliance and basis of preparation The financial statements have been prepared in accordance with Cash-basis IPSAS financial reporting under the cash basis of Accounting, as prescribed by the PSASB and set out in the accounting policy note below. This cash basis of accounting has been supplemented with accounting for; a) receivables that include imprests and salary advances and b) payables that include deposits and retentions. The financial statements comply with and conform to the form of presentation prescribed by the PSASB. The accounting policies adopted have been consistently applied to all the years presented. 8.1.2. Reporting entity The financial statements are for the Kenya Informal Settlement Improvement Project under National Government of Kenya. The financial statements encompass the reporting entity as specified in the relevant legislation PFM Act 2012 . 8.1.3. Reporting currency The financial statements are presented in Kenya Shillings (KShs), which is the functional and reporting currency of the Project and all values are rounded to the nearest Kenya Shilling. 8.2. Significant Accounting Policies a)Recognition of receipts The Project recognises all receipts from the various sources when the event occurs and the related cash has actually been received by the Government. o Transfers from the Exchequer Transfer from Exchequer is be recognized in the books of accounts when cash is received. Cash is considered as received when payment instruction is issued to the bank and notified to the receiving entity. o External Assistance External assistance is received through grants and loans from multilateral and bilateral development partners. 5 Kenya Informal Settlement Improvement Project Reports and Financial Statements For the financial year ended June 30, 2018 SIGNIFICANT ACCOUNTING POLICIES (Continued) Donations and grants Grants and donations shall be recognized in the books of accounts when cash is received. Cash is considered as received when a payment advice is received by the recipient entity or by the beneficiary. In case of grant/donation in kind, such grants are recorded upon receipt of the grant item and upon determination of the value. The date of the transaction is the value date indicated on the payment advice. Proceeds from borrowing Borrowing includes Treasury bill, treasury bonds, corporate bonds, sovereign bonds and external loans acquired by the Project or any other debt the Project may take on will be treated on cash basis and recognized as a receipt during the year they were received. Undrawn external assistance These are loans and grants at reporting date as specified in a binding agreement and relate to funding for the Project currently under development where conditions have been satisfied or their ongoing satisfaction is highly likely and the project is anticipated to continue to completion. An analysis of the Project's undrawn external assistance is shown in the funding summary * Other receipts These include Appropriation-in-Aid and relates to receipts such as proceeds from disposal of assets and sale of tender documents. These are recognised in the financial statements the time associated cash is received. b) Recognition of payments The Project recognises all payments when the event occurs and the related cash has actually been paid out by the Project. o Compensation of employees Salaries and Wages, Allowances, Statutory Contribution for employees are recognized in the period when the compensation is paid. * Use of goods and services Goods and services are recognized as payments in the period when the goods/services are consumed and paid for. If not paid for during the period where goods/services are consumed, they shall be disclosed as pending bills. * Interest on borrowing Borrowing costs that include interest are recognized as payment in the period in which they incurred and paid for. 6 Kenya Informal Settlement Improvement Project Reports and Financial Statements For the financial year ended June 30, 2018 SIGNIFICANT ACCOUNTING POLICIES (Continued) o Repayment of borrowing (principal amount) The repayment of principal amount of borrowing is recognized as payment-in the period in which the repayment is made. The stock of debt is disclosed as an annexure to the consolidated financial statements. o Acquisition of fixed assets The payment on acquisition of property plant and equipment items is not capitalized. The cost of acquisition and proceeds from disposal of these items are treated as payments and receipts items respectively. Where an asset is acquired in a non-exchange transaction for nil or nominal consideration and the fair value of the asset can be reliably established, a contra transaction is recorded as receipt and as a payment. A fixed asset register is maintained by each public entity and a summary provided for purposes of consolidation. This summary is disclosed as an annexure to the consolidated financial statements. c) In-kind donations In-kind contributions are donations that are made to the Project in the form of actual goods and/or services rather than in money or cash terms. These donations may include vehicles, equipment or personnel services. Where the financial value received for in- kind contributions can be reliably determined, the Project includes such value in the statement of receipts and payments both as receipts and as payments in equal and opposite amounts; otherwise, the contribution is not recorded. d) Cash and cash equivalents Cash and cash equivalents comprise cash on hand and cash at bank, short-term deposits on call and highly liquid investments with an original maturity of three months or less, which are readily convertible to known amounts of cash and are subject to insignificant risk of changes in value. Bank account balances include amounts held at the Central Bank of Kenya and at various commercial banks at the end of the financial year. For the purposes of these financial statements, cash and cash equivalents also include short term cash imprests and advances to authorised public officers and/or institutions which were not surrendered or accounted for at the end of the financial year. Restriction on cash Restricted cash represents amounts that are limited/restricted from being used to settle a liability for at least twelve months after the reporting period. This cash is limited for direct use as required by stipulation. Amounts maintained in deposit bank accounts are restricted for use in refunding third part deposits 7 Kenya Informal Setdement Improvement Project Reports and Financial Statements For the financial year ended June 30, 2018 SIGNIFICANT ACCOUNTING POLICIES (Continued) e) Accounts receivable For the purposes of these financial statements, imprests and advances to authorised public officers and/or institutions which were not surrendered or accounted for at the end of the financial year is treated as receivables. This is in recognition of the government practice where the imprest payments are recognized as payments when fully accounted for by the imprest or AIE holders. This is an enhancement to the cash accounting policy. Other accounts receivables are disclosed in the financial statements. f) Pending bills Pending bills consist of unpaid liabilities at the end of the financial year arising from contracted goods or services during the year or in past years. As pending bills do not involve the payment of cash in the reporting period, they recorded as 'memorandum' or 'off-balance' items to provide a sense of the overall net cash position of the Project at the end of the year. When the pending bills are finally settled, such payments are included in the statement of receipts and payments in the year in which the payments are made. g) Budget The budget is developed on a comparable accounting basis (cash basis), the same accounts classification basis (except for accounts receivable - outstanding imprest and clearance accounts and accounts payable - deposits, which are accounted for on an accrual basis), and for the same period as the financial statements. The Project's budget was approved as required by Law and National Treasury Regulations, as well as by the participating development partners, as detailed in the Govermnent of Kenya Budget Printed Estimates for the year. The Development Projects are budgeted for under the MDAs but receive budgeted funds as transfers and account for them separately. These transfers are recognised as inter-entity transfers and are eliminated upon consolidation. A high-level assessment of the Project's actual performance against the comparable budget for the financial year/period under review has been included in an annex to these financial statements. h) Third party payments Included in the receipts and payments, are payments made on its behalf by to third parties in form of loans and grants. These payments do not constitute cash receipts and payments and are disclosed in the payment to third parties column in the statement of receipts and payments. During the year no loan disbursements were received in form of direct payments from third parties. 8 Kenya Informal Settlement Improvement Project Reports and Financial Statements For the financial year ended June 30, 2018 SIGNIFICANT ACCOUNTING POLICIES (Continued) i) Exchange rate differences The accounting records are maintained in the functional currency of the primary economic environment in which the Project operates, Kenya Shillings. Transactions in foreign currencies during the year/period are converted into the functional currency using the exchange rates prevailing at the dates of the transactions. Any foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the statements of receipts and payments. j) Comparative figures Where necessary comparative figures for the previous financial year/period have been amended or reconfigured to conform to the required changes in financial statement presentation. k) Subsequent events There have been no events subsequent to the financial year/period end with a significant impact on the financial statements for the year ended June 30, 2018. 1) Errors Material prior period errors shall be corrected retrospectively in the first set of financial statements authorized for issue after their discovery by: i. Restating the comparative amounts for prior period (s) presented in which the error occurred; or ii. If the error occurred before the earliest prior period presented, restating the opening balances of assets, liabilities and net assets/equity for the earliest prior period presented. 9 Kenya Informal Settlement Improvement Project Reports and Financial Statements For the financial year ended June 30, 2018 NOTES TO THE FINANCIAL STATEMENTS (Continued) 8.3. RECEIPTS FROM GOVERNMENT OF KENYA These represent counterpart funding and other receipts from government as follows: 2017/18 2016/17 Cumulative KShs KSh's to-date Counteipart funding through State Department for Housing and Urban Development Counterpart funds Quarter 1 - 125,000,000 145,000,000 Counterpart funds Quarter 2 120,000,000 - 235,000,000 Counterpart funds Quarter 3 - - 121,569,780 Counterpart funds Quarter 4 54,880,000 55,000,000 257,488,521 174,880,000 180,000,000 759,058,301 Other transfers from government entities Appropriations-in-Aid Total 174,880,000 180,000,000 759,058,301 10 Kenya Informal Settlem;ent Improvement Project Reports and Financial Statements For the financial year ended June 30, 2018 NOTES TO THE FINANCIAL STATEMENTS (Continued) 8.4. PROCEEDS FROM DOMESTIC AND FOREIGN GRANTS During the 12 months to 30 June 2018 we received grants from donors as detailed in the table below: Nameof Donor Date Amount Grants Grants Grants Total amount in KShs reved received received in ireceived receive in donor cash as' direct d in eurrenc pRaymentl- kind FY 2017/18: FY 201'6/17, KS- KK1h5 KShs_ Ksh___ Grants Received from Bilateral Donors (Foreign Governments) 0 0 0 Grants Received from Multilateral Donors (International Organizations) SIDA 30/6/2018 5,299,900 539,923,936 539,923,936 307,255,518 Grants Received from Local Individuals and organisations Total 55,299,900 539,923,936 539,923,936 307,255,518 11 Kenya Informal Settlement Improvement Project Reports and Financial Statements For the financial year ended June 30, 2018 NOTES TO THE FINANCIAL STATEMENTS (Continued) 8.5. LOAN FROM EXTERNAL DEVELOPMENT PARTNERS During the 12 months to 30 June 2018 we received funding from development partners in form of lo; negotiated by the National Treasury donors as detailed in the table below: Name of Donor Date Amount in Loans Loans Total amount in KShs received oan received in received-as currency cash dict ayment* KShs KssF17/!R161 Loans Received from Bilateral Donors (Foreign Governments) Loans Received from Multilateral Donors (International Organisations) International Development 6/30/2018 18,735,207 1,905,705,640 1,905,705,640 2,101,594,852 Association (IDA) French Development 5/31/2018 5,320,000 534,660,000 534,660,000 0 Agency (AFD) Total 24,055,207 2,440,365,640 - 2,440,365,640 2,101,594,852 8.6. MISCELLANEOUS RECEIPTS No Miscellaneous receipts 8.7. COMPENSATION OF EMPLOYEES No Miscellaneous receipts 12 Kenya Informal Settlement lmproveimentP Projeci Reports and Financial Statements For the financial year ended June 30, 2018 NOTES TO THE FINANCIAL STATEMENTS (Continued) 8.8. PURCHASE OF GOODS AND SERVICES cumula FY 2017/18. FY 206/7 toAaWle Pyents Payments,. nuie ' the, made by third Enutity in Cash Dart'es Totea Payments KShs KShs KShs KShs KShs Utilities, supplies and 14,499,421 14,499,421 13,020,213 64,798,534 services Communication, 8,287,365 8,287,365 5,101,857 30,189,902 supplies and services Domestic travel and 55,424,719 55,424,719 67,873,927 220,875,229 subsistence Foreign travel and subsistence Printing, advertising 2,079,320 2,079,320 7,002,605 35,182,083 and - information supplies & services Rentals of produced - - assets Training payments 230,000 230,000 524,495 67,950,388 Hospitality supplies 177,400 177,400 879,006 3,774,930 and services Insurance costs 1,483,002 1,483,002 1,483,002 Specialized materials - and services Other operating - payments Routine maintenance - 11,122,691 11,122,691 11,855,822 41,072,465 vehicles and other transport equipment Routine maintenance- - other assets Exchange rate - losses/gains (net) Total 93,303,918 93,303,918 106,257,925 465,326,533 13 Kenya Informal Settlement Improvement Project Reports and Financial Statements For the financial year ended June 30, 2018 NOTES TO THE FINANCIAL STATEMENTS (Continued) 8.9. SOCIAL SECURITY BENEFITS No payments for social security benefits 8.10. ACQUISITION OF NON-FINANCIAL ASSETS Cumulative to- FY 2017/18. FY 2016/17 j-date Payments Payments ' . ~made. by the mae'yTota Entity in Cash th-rd parties Payments KShs KShs KShs KShs KShs Purchase of buildings Construction of buildings Refurbishment of buildings Construction of roads Construction of civil works 2,095,945,626 2,095,945,626 1,889,474,069 6,959,544,226 Overhaul & refurbishment of construction and civil works Purchase of vehicles & other transport equipment 82,478,360 Overhaul of vehicles & other transport equipment Purchase of household furniture & institutional equipment Purchase of office furniture & general 48,989,355 48,989,355 231,664 134,518,602 equipment Purchase of specialised plant, equipment and machinery Rehabilitation & renovation of plant, equipment & machinery Purchase of certified seeds, breeding stock and live animals Research, studies, project preparation, 1,023,541,786 1,023,541,786 560,734,777 2,562,656,841 design & supervision Rehabilitation of civil works Acquisition of strategic stocks Acquisition of land Total 3,168,476,767 - 3,168,476,767 2,450,440,509 9,739,198,028 14 Kenya Informal Settlement Improvement Project Reports and Financial Statements For the financial year ended June 30, 2018 NOTES TO THE FINANCIAL STATEMENTS (Continued) 8.11. TRANSFERS TO OTHER GOVERNMENT ENTITIES During the 12 months to 30 June 2018, we transferred funds to reporting government entities as shown below: Cumulative FY ^2017/18. FY 2016/17reted Payments made by Payments, made by third Total the Entit in Cn-sh narties Pa-mnt KShs KShs KShs KShs KShs Transfers to National Government entities Athi Water Services - 40,827,439 203,237,099 Board Coast Water Services - - 46,000,000 71,200,000 Board Lake Victoria North - 98,834,903 Water Services Board - - 86,827,439 373,272,002 Transfers to County Government TOTAL - - 86,827,439 373,272,002 We have confirmed that the beneficiary institutions have received the funds and have recorded these as inter-entity receipts. We have attached these duly signed confirmations as an Appendix to the financial statements. 15 Kenya Informal Settlement Improvement Project Reports and Financial Statements For the financial year ended June 30, 2018 NOTES TO THE FINANCIAL STATEMENTS (Continued) 8.12. OTHER GRANTS AND TRANSFERS AND PAYMENTS There were no other grants and transfers and payments 8.13. CASH AND CASH EQUIVALENTS CARRIED FORWARD 2017/18 2016/17 KShs KShs. Bank accounts (Note 8. 13A) 656,289,681 762,900,791 Cash in hand (Note 8. 13B) Cash equivalents (short-term deposits) (Note 8.1 3C) Total 656,289,681 762.900.791 The project has 1 number of project accounts spread within the project implementation area and 2 number of foreign currency designated accounts managed by the National Treasury as listed below: 16 Kenya Informal Settlement Improvement Project Reports and Financial Statements For the financial year ended June 30, 2018 NOTES TO THE FINANCIAL STATEMENTS (Continued) 8.13. A Bank Accounts Project Bank Accounts 2017/18 2016/17 KShs KShs Foreign Currency Accounts No foreign currency accounts Total Foreign Currency balances Local Currency Accounts Co-operative Bank of Kenya [A/c No... 01141161460400] 653,739,681 760,350,791 Others ( amount held by Bank as collateral) 2,550,000 2,550,000 Total local currency balances 656,289,681 762,900,791 Total bank account balances 656,289,681 762,900,791 17 Kenya Informal Settlement Improvement Project Reports and Financial Statements For the financial year ended June 30, 2018 NOTES TO THE FINANCIAL STATEMENTS (Continued) Special Deposit Accounts The balances in the Project's Special Deposit Account(s) as at 30th' June 2018 are not included in the Statement of Financial Assets since they are below the line items and are yet to be drawn into the Exchequer Account as a voted provision. Below is the Special Deposit Account (SDA) movement schedule which shows the flow of funds that were voted in the year. These funds have been reported as loans/grants received in the year under the Statement of Receipts and Payments. Special Deposit Accounts Movement Schedule 2017/2018 2016/2017 KShs Kshs (i) Equity Bank Limited [A/c NO:08102951128571 Opening balance 725,363,739 1,748,823,644 Total amount deposited in the account 1,720,265,837 1,385,390,465 Amount withdrawn (as per Statement of Receipts & Payments)-Grant (539,923,936) amount withdrawn (as per Statement of Receipts & Payments)- Loan (1,905,705,640) Total amount withdrawn (as per Statement of Receipts & Payments) (2,445,629,576) (2,408,850,370) Closing balance (as per SDA bank account reconciliation attached) 0 725,363,739 (ii) KISIP-CKE 1055 01 J [A/c No 10003398881 Opening balance (as per the SDA reconciliation) 0 Total amount deposited in the account 680,248,977 0 Total amount withdrawn (as per Statement of Receipts & Payments) 534,660,000 Closing balance (as per SDA bank account reconciliation attached) 145.588,977 0 The Special Deposit Account(s) reconciliation statement(s) has (have) been attached as Appendix i support these closing balances. NB; there was an amount of USD 2,447,295.36, being advance payment recovered from a contractor whose contract was terminated on grounds of receivership (KSC International LTD), that was received in the IDA special account for onward remittance to IDA. Such recoveries are deemed ineligible expenditures and therefore sent back to IDA. The remittance advice and recovery letters have been attached. 8.13. B Cash In Hand There was no cash at hand as at 30.06.2018 18 Kenya Informal Settlerent Improvement Projeci Reporis and Financial Staterents ~ For the financialyear ended June 30, 2010 NOTES TO THE FINANCIAL STATEMENTS (Continued) 8.13. C Cash equivalents (short-term deposits) 2017/18 2016/17 KShs KShs Co-Operative Bank of Kenya [A/C No ......] Total [Provide short appropriate explanations as necessary] 8.14. OUTSTANDING IMPRESTS AND ADVANCES !Due4Dat Nam o Oficr o istiuton Amout munt: Balance-, Bolance Takeni surnee 208 27 Surrender Total 0 0 0 0 0 8.15. FUND BALANCE BROUGHT FORWARD Bank accounts 656,289,681 762,900,791 Cash in hand - Cash equivalents (short-term deposits) Outstanding imprests and advances Total 656,289,681 762,900,791 19 Kenya Informal Settlement Improvement Project Reports and Financial Statements For the financial year ended June 30, 2018 NOTES TO THE FINANCIAL STATEMENTS (Continued) 8.16. PRIOR YEAR ADJUSTMENT 2017/18 2016/17 KShs KS.hs Bank accounts Cash in hand Cash equivalents (short-term deposits) Receivables - Outstanding Imprests Total 20 Kenya Informal Settlement Improvement Project Reports and Financial Statements For the financial year ended June 30, 2018 9. OTHER IMPORTANT DISCLOSURES 9.1 PENDING ACCOUNTS PAYABLE (See Annex 2A) No Pending accounts payable 9.2 PENDING STAFF PAYABLES (See Annex 2B) No pending staff payables 9.3 OTHER PENDING PAYABLES (See Annex 2C) No other pending payables 21 Kenya Informal Settlement Improvement Project Reports and Financial Statements For the financial year ended June 30, 2018 10. PROGRESS ON FOLLOW UP OF AUDITOR RECOMMENDATIONS The following is the summary of issues raised by the external auditor, and management comments that were provided to the auditor. We have nominated focal persons to resolve the various issues as shown below with the associated time frame within which we expect the issues to be resolved. i Focal Point Status Tim Referen"ce person to' (Resolve (PutVa. date Non oni Issue / Obsevations Management udit the d /pNotewhe -6you P a S rect Coordinator externDaa from Auditor, comments issue (Nane Resolved eect, the and )Issue 4o b Report des4pnafion) resolved The project received an unqualified audit opinion in the FY 2016/2017 PMR8pal Se`cretaW/ Project Coordinator Date Date 22 � о '_й > О ^ л у � _ р ` ° _° ai � � - ' �� .� � :� = � :`'-'�.� д ш о r;;r=.:, �' bд ;� :� � �, � �г� � 4. €� � ^ г, � . ;� ,о р = ® ' WI и � � jg г3 'у 3 'cs � �' � � �1 " � � �' � � �:�i F � � �f ��уΡ����� ,� � � � � � � � � � � � О О � �,.�-�'��l�J `.� - О О О О О О О О О О О i со о оо о � о о о о о о о � 5'�-. � г� о о� о� о о о А о ,�'. !� � \'�-`�� Е� ' ;. , : � о �t о ' �t ' г� ' м ' ' � ' О Vr \U N 00 м � `г>..Q �.сс�э �� о о м �r о N м � �r � д� о й � м � � � � `� � О� � �мfJ [� � 00 О � bD' л�' ''� � � , ;� : � � г� а� � м �д. r,�,',.4,�: д- и и N � р, �' А ь-i Н а .д о � о ' и � � � �, � � � � �° �. 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