REPUBLIC OF KENYA OFHCE OF THE AUDITOR-GENERAL REPORT OF THE AUDITOR-GENERAL ON THE FINANCIAL STATEMENTS OF KENYA WATER SECURITY AND CLIMATE RESILIENCE PROJECT (IDA CREDIT NO.5268-KE) FOR THE YEAR ENDED 30 JUNE 2015 MINISTRY OF ENVIRONMENT, WATER AND NATURAL RESOURCES PROJECT NAME KENYA WATER SECURITY AND CLIMATE RESILIENCE PROJECT IMIPLEMENTING ENTITY MINISTRY OF ENVIRONMENT, WATER AN) NATURAL RESOURCES PROJECT CREDIT NUMBER: 5268-KE ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED JUNE 30, 2015 Prepared in accordance with the Cash Basis of Accounting Method under the International Public Sector Accounting Standards (IPSAS) Kenya Water Security And Climate Resilience Project Reports and Financial Statements For the financial year ended June 30, 2015 CONTENTS PAGE 1. PROJECT INFORMATION AND OVERALL PERFORMANCE............................................................... 2. STATEMENT OF PROJECT MANAGEMENT RESPONSIBILITIES ................ ...............v 3. REPORT OF THE INDEPENDENT AUDITORS ON THE KWSCR PROJECT .. .................vi 4. STATEMENT OF RECEIPTS AND PAYMENTS FOR THE PERIOD ENDED 30TH JUNE 2015 ..........1 5. STATEMENT OF FINANCIAL ASSETS AND LIABILITIES AS AT 30TH JUNE 2015.....................2 6. STATEMENT OF CASH FLOW FOR THE YEAR ENDED 30TH JUNE 2015....... ...........3 7. STATEMENT OF COMPARATIVE BUDGET AND ACTUAL AMOUNTS ...................4 8. NOTES TO THE FINANCIAL STATEMENTS 5......................... .. . . . . . . . . . . . .. . . . . . . . Kenya Water Security And Climate Resilience Project Reports and Financial Statements For the financial year ended June 30, 2015 1. PROJECT INFORMATION AND OVERALL PERFORMANCE 1.1 Name and registered office Name: The project's official is the Principal Secretary. Objective: The key objective of the project is to increase availability and productivity of irrigation water for project beneficiaries and to enhance the institutional framework and strengthen capacity for water security and climate. Address: The project headquarters offices are Nairobi (city), Nairobi County, Kenya. The address of its registered office is: Kenya Water Security and Climate Resilience Project, Ministry of Environment, Water and Natural Resource- Ngong Road, Maji House P.0 Box 49720 Nairobi Contacts: The following are the project contacts Telephone: (254) 2716103 E-mail: ewscr-project@Water.go.ke 1.2 Project Information Project Start Date: The project start date for the project preparation advance was 5t January 2012 and Loan Credit 24h October 2013 Project End Date: The project end date for the project preparation advance was 3 It December 2013 and the Loan Credit is I October 2020 Project Manager: The project manager is Eng.Simon G. Mwangi Project Sponsor: The project sponsor is Ministry of Environment, Water and Natural Resources 1.3 Project Overview Line Ministry/State The project is under the supervision of the Ministry of Environment, Water Department of the and Natural Resources. project Project number Credit No. 5268-KE Strategic goals of the The strategic goals of the project are as follows: project (i) To improve water security and build climate resilience by strengthening water and climate risk investment planning, preparation, and implementation that is supported by an enhanced Kenya Water Security and Climate Resilience Project Reports and Financial Statements For the financial year ended June 30, 2015 institutional framework. Achievement of The project management aims to achieve the goals through the following strategic goals means: 1. Increase availability and productivity of irrigation water for project beneficiaries and enhance the institutional framework and strengthen capacity for water security and climate resilience for the country. Other important The project is funded by the Government of Kenya (GOK), International background Development Association (IDA), Kfw and the Beneficiaries. The Project information of the total cost is US$ 182.67 million as indicated below and is to be project implemented over seven years. * IDA (USDI55M), * KfW (USD20M), * Gok (USD6.5M), * Beneficiaries (USDI.2M) The Project has six categories as per the Financing Agreement: Category 1: Goods, Category 2: Works, Category 3: Consultancy Services, Category 4; Operating Cost, Category 5 Refunds of Preparation Advance and Category 6: Unallocated Current situation that The project was formed to intervene in the following areas: the project was (i) Component 1:Water resource development, formed to intervene f SC1. 1 Water Sector Investment SC1.2 Water Investment Pipeline (ii) Component 2: Effective water sector institution SC 2.1 Support for Water Sector Transition and Reforms SC 2.2 Strengthening Water Management and Planning (iii) Support for Project Implementation. Project duration The project started on 5th January 2012 and is expected to run until 1st October 2020 1.4 Bankers The following are the bankers for the current year: (i) Designated Account - Kenya Commercial Bank - Account No. 1134042582 (ii) Designated Account - Central Bank of Kenya -Account No. 1000214244 (iii) NIC Bank , NIC House - Account No. 1000591738, Nairobi 1.5 Auditors The project is audited by the Auditor General, Kenya National Audit Office. (P.0 Box 30084 University Way, Nairobi.) 11 Kenya Water Security And Climate Resilience Project Reports and Financial Statements For the financial year ended June 30, 2015 1.6 Roles and Responsibilities Names Title designation Key qualification Responsibilities Director Water Storage Coordination of Eng Robinson K. Gaita and Land Reclamation BSC Civil Engineering the project Overall Project Eng Simon G. Mwangi Project Manager BSC Civil Engineering Management MSC, Procurement and Procurement Francis Rotich Procurement officer logistics Management Financial Alice Mwaniki Project Accountant MBA, BCOM, CPA(K) Management MBA,BSC,Civil Technical Eng Peter Muiruri Technical Manager Engineering lResponsibilities 1.7 Funding summary The Project is for a duration of seven years from 2012 to 2020 with an approved budget of US$ 182.67million equivalent to Kshs 15,8billion as highlighted in the table below: IU I~~ M_____M__1__a Oveal Projec Managemen (M)Procurement GovManagement Key 7,660,000 666,420,000 -- 7,660,000 666,420,000 Total 182,670,000 15,892,290,000 8,167,212.80 684,158,625 166,742158.96 16,125,284,316.50 I (ii)Cunerar I Water Security And Climate Resilience Project rtS and Financial Statements the financial year ended June 30, 2015 1 Sunmary of Overall Project Performance: Budget performance against actual amounts for current year and for cumulative to-date: In 2014/2015 the total budget was Kshs 400,000,000 and the actual expenditure was Ksh 321,218,981 which was (80%) of the budget. 1.9 Summaiy of Project Compliance: As per the Financial Management supervision conducted by the World Bank between November 21P to 24th 2014 in accordance with the World Bank's Financial Management Practices Manual issued on March 1, 2010 and Financial Management Policy OP/BP 10.02, the implementing agency was noted to have met World Bank Financial Management requirements, GoK financial regulations, fiduciary framework and accountability. iv :rater Security and Climate Resilience Project and Financial Statements financial year ended June 30, 2015 TEMENT OF PROJECT MANAGEMENT RESPONSIBILITIES ie Pincipal Secretary for the Ministry of Environment, Water and Natural Resource and the Project Coordinator for Kenya Water Security and Climate Resilience 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 financial year ended on June 30, 2015. 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 Ministry of Ministry of Environment, Water and Natural Resource and the Project Coordinator for Kenya Water Security and Climate Resilience 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 Ministry of Environment, Water and Natural Resource and the Project L Coordinator for Kenya Water Security and Climate Resilience 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 year/period ended June 30, 2015, and of the Project's financial position as at that date. The I Principal Secretary for Ministry of Environment, Water and Natural Resource and the Project Coordinator for Kenya Water Security and Climate Resilience 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 Ministry of Environment, Water and Natural Resource and the Project Coordinator for Kenya Water Security and Climate Resilience project confirm that the Project has complied fully with applicable Govermnent Regulations and the terms of external financing covenants, and that Project funds received during the financial year/period 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 Ministry of Environment, Water and Natural Resource and the Project Coordinator for Kenya Water Security and Climate Resilience project on 2015 and signed by them. Principal Secretary Project Coordinator V REPUBLIC OF KENYA P.O. Box 30084-00100 NAIROBI OFFICE OF THE AUDITOR-GENERAL REPORT OF THE AUDITOR-GENERAL ON KENYA WATER SECURITY AND CLIMATE RESILIENCE PROJECT (IDA CREDIT NO.5268-KE) FOR THE YEAR ENDED 30 JUNE 2015 - MINISTRY OF ENVIRONMENT, WATER AND NATURAL RESOURCES REPORT ON THE FINANCIAL STATEMENTS I have audited the accompanying financial statements of Kenya Water Security and Climate Resilience Project (IDA Credit No.5268-KE) set out on pages 1 to 19, which comprise the statement of financial assets and liabilities as at 30 June 2015, and the statement of receipts and payments, statement of cash flow and statement of comparative budget and actual amounts for the year then ended, and a summary of significant accounting policies and other explanatory information in accordance with the provisions of Article 229 of the Constitution of Kenya, Section 8 of the Public Audit Act, 2003 and the Financing Agreement No.5268 dated 29 July 2013 between the International Development Association (IDA) and the Government of Kenya. I have obtained all the information and explanations which, to the best of my knowledge and believe, were necessary for the purpose of the audit. Management's Responsibility 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. The management is also responsible for the submission of the financial statements to the Auditor-General in accordance with the provisions of Section 7 of the Public Audit Act, 2003. Auditor-General's Responsibility My responsibility is to express an opinion on these financial statements based on the audit and report in accordance with the provisions of Section 9 of the Public Audit Act, 2003. The audit was conducted in accordance with International Standards of Supreme Audit Institutions (ISSAls). Those standards require compliance with ethical requirements and that the audit be planned and performed to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedure to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected Ken va Water Security And Climate Resilience Project (ID.AI CREDIT NO.5268-KE) - 4nnual Report and Financial Statements for the Year ended 30,hne 2015 Pramoting Accountability in the Public Sector depend on the auditor's judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements 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. An audit also includes the evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the management, as well as evaluating the overall presentation of the financial statements. I believe that the audit evidence obtained is sufficient and appropriate to provide a basis.for my qualified audit opinion. Basis for Qualified Opinion Unreconciled Loan Disbursement The loan amount of Kshs.390,616 107 received during the year under review from External Resources Department is at variance with the special accounts statement balance of Kshs.429,555,792 resulting to an un-explained difference of Kshs.38,939,685. Consequently, it has not been possible to confirm the propriety of the loan difference of Kshs.38,939,685 as at 30 June 2015. Opinion In my opinion, except for the effects of the matter described in the Basis for Qualified Opinion Paragraph, the financial statements present fairly, in all material respects, the financial position of the Project as at 30 June 2015, 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 comply with the IDA Financing Agreement No.5268 of 29 July 2013. In addition, the Special Account Statement presents fairly, the transactions for the year, and the closing balances have been reconciled with the books of account. FCPA Edward R.O. Ouko, CBS AUDITOR-GENERAL Nairobi 29 December 2015 Kenyva TWater Security AJnd clhmate Resilience Project (IDA CREDIT .V0.5268-KE) - Annu71al Report and Financial .State,nent.s far the y'ear ended 30 Jun1e 2015 REPUBLIC OF KENYA P.O. Box 30084-00100 6ne 11482 ,NAIROBI oagCOY go ke OFFICE OF THE AUDITOR-GENERAL REPORT OF THE AUDITOR-GENERAL ON KENYA WATER SECURITY AND CLIMATE RESILIENCE PROJECT (IDA CREDIT NO.5268-KE) FOR THE YEAR ENDED 30 JUNE 2015 - MINISTRY OF ENVIRONMENT, WATER AND NATURAL RESOURCES REPORT ON THE FINANCIAL STATEMENTS I have audited the accompanying financial statements of Kenya Water Security and Climate Resilience Project (IDA Credit No.5268-KE) set out on pages 1 to 19, which comprise the statement of financial assets and liabilities as at 30 June 2015, and the statement of receipts and payments, statement of cash flow and statement of comparative budget and actual amounts for the year then ended, and a summary of significant accounting policies and other explanatory information in accordance with the provisions of Article 229 of the Constitution of Kenya, Section 8 of the Public Audit Act, 2003 and the Financing Agreement No.5268 dated 29 July 2013 between the International Development Association (IDA) and the Government of Kenya. I have obtained all the information and explanations which, to the best of my knowledge and believe, were necessary for the purpose of the audit. Management's Responsibility 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. The management is also responsible for the submission of the financial statements to the Auditor-General in accordance with the provisions of Section 7 of the Public Audit Act, 2003. Auditor-General's Responsibility My responsibility is to express an opinion on these financial statements based on the audit and report in accordance with the provisions of Section 9 of the Public Audit Act, 2003. The audit was conducted in accordance with International Standards of Supreme Audit Institutions (ISSAls). Those standards require compliance with ethical requirements and that the audit be planned and performed to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedure to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected Kenya Fater Securit) .4nd Climate Resilience Project (IDA CREDIT ,N.O. 5268-KE) - .4nnual Report and Financial Statenents for the year ended 30 June 2015 Promoting Accountability in the Public Sector Kenya Water Security And Climate Resilience Project Reports and Financial Statements For the financial year ended June 30, 2015 4. STATEMENT OF RECEIPTS AND PAYMENTS FOR THE PERIOD ENDED 30TH JUNE 2015 Note Cumulative 2014/2015 2013/2014 to date Kshs Kshs Kshs RECEIPTS Transfer from Government entities 8.2 26,896,647 - 26,896,647 Proceeds from domestic and foreign grants 8.3 - - - Loan from external development partners 8.4 390,616,107 100,926,796 573,238,090 Miscellaneous receipts 8.5 20.283,954 13,225,758 33,737,460 Total receipts 437,796,708 114.152,554 633,872,197 PAYMENTS ' Compensation of employees 8.6 181,283,601 65,403,662 297,284,811 Purchase of goods and services 8.7 86,240,025 32,065,594 134,946,454 Social security benefits 8.8 - - - Acquisition of non-financial assets 8.9 35,005,050 4,185,007 53,818,157 Transfers to other government entities 8.10 - - - Other grants and transfers and payments 8.11 18,690,305 10,000,000 28,690,305 TOTAL PAYMENTS 321,218.981 111,654.263 514,739,727 SURPLUS/DEFICIT FOR THE YEAR 116M577.727 29 119132.470 The accounting policies and explanatory notes to these financial statements are an integral part of the financial statements. Princip ISecretary Project Coordinator Date Date 1 ,enya Water Security and Climate Resilience Project Reports and Financial Statements For the financial year ended June 30, 2015 5. STATEMENT OF FINANCIAL ASSETS AND LIABILITIES AS AT 30TH JUNE 2015 Note 2014/15 2013/14 Kshs Kshs FINANCIAL ASSETS Cash and Cash Equivalents Bank Balances 8.12A 116,991,312 51,094 Cash Balances 8.12B - - Cash Equivalents 8.12C - - Imprests and Advances 8.12D 2,141,158 2,503,649 TOTAL FINANCIAL ASSETS 119,132,470 2,554,743 REPRESENTED BY: Cash and cash equivalents b/fvd 2,554,743 56,452 Surplus/Deficit for the year 8.13 116,577,727 2,498,291 Prior year adjustments 8.14 - - 119,132.470 2,554,743 NET FINANCIAL POSITION The accounting policies and explanatory notes to these financial statements fonn an integral part of the financial statements. The financial statements were approved on 2015 and signed by: Principal Secretary Project Coordinator Date Date 2 ]Kenya Water Security and Climate Resilience Project Reports and Financial Statements For the financial year ended June 30, 2015 6. STATEMENT OF CASHFLOW FOR THE PERIOD 30T11 JUNE 2015 2014-2015 2013-2014 Notes Kshs Kshs Receipts for operating income Transfer from Government entities 8.2 26,896,647 Proceeds from domestic and foreign grants 8.3 - - Miscellaneous receipts 8.5 20,283,954 13,225,758 Payments for operating expenses Compensation of employees 8.6 (181,283,601) (65,403,662) Purchase of goods and services 8.7 (86,240,025) (32,065,594) Social security benefits 8.8 Transfers to other government entities 8.1 - Other grants and transfers 8.11 (18.690,305) (10,000,000) Net cash flow from operating activities (239,033,330) (94,243,498) CASHIFLOW FROM INVESTING ACTIVITIES Acquisition of Assets 8.9 (35,005,050 (4,185.007) Net cash flows from Investing Activities (35,005,050) (4,185,007) CASHFLOW FROM BORROWING ACTIVITIES Loan from external development partners 8.4 390,616,107 100,926,796 Net cash flow from financing activities 390,616,107 100,926,796 NET INCREASE IN CASH AND CASH 116,577,727 2,498,291 EQUIVALENT Cash and cash equivalent at BEGINNING of 2,554,743 56,452 the year Cash and cash equivalent at END of the year 119,132.470 2.554.743 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 2015 and signed by: Principal Secretary Project Coordinator Date Date 3 Kenya Water Security and Climate Resilience Project Reports and Financial Statements For the financial year ended June 30, 2015 7. STATEMENT OF COMPARATIVE BUDGET AND ACTUAL AMOUNTS Actual on % of Receipts/Paymen Original Final Comparabl Varia ts Item Budget Adjustments Budget e Basis Variance nce f=e/c a b c=a+b d e=c-d % Receipts Transfer from Government entities 100,000,000 - 100,000,000 26,896,647 73,103,353 73% Proceeds from domestic and- foreign grants - - - - 0% Proceeds from borrowings 1,900,000,000 (1,600,000,000) 300,000,000 390,616,107 (90,616,107) (30%) Miscellaneous (100 receipts _ - - 20,283,954 (20,283,954) %) Total Receipts 2,000,000,000 (1,600,000,000) 400,000,000 437,796,708 (37,796,708) (9%) Payments Compensation of employees 800,000,000 (602,000,000) 198,000,000 181,283,601 16,716,399 8% Purchase of goods and services 400,000,000 (310,000,000) 90,000,000 86,240,025 6,263,624 4% Social security benefits - 0% Acquisition of non-financial assets 300,000,000 (188,000,000) 112,000,000 35,005,050 76,994,950 69% f Transfers to other government entities - - - - 0% Other grants and (100 transfers -- - 18,690,305 (18,690,305) % Other payments 500,000,000 (500,000,000) - - - 0% Total Payments 2,000,000,000 (1,600,000,00) 400,000,000 321,218,981 78,781,019 20% Note: The significant budget utilisation/performance difference in the last column are explained in Annex I to these financial statements. Principal Secre thiK " Project Coordinatolr Date Date 4 J(enya Water Security and Climate Resilience Project Reports and Financial Statements For the financial year ended June 30, 2015 8. NOTES TO THE FINANCIAL STATEMENTS The principal accounting policies adopted in the preparation of these financial statements are set out below: 8.1 Statement of compliance and basis of preparation The financial statements have been prepared in accordance with and comply with International Public Sector Accounting Standards (IPSAS) with particular emphasis on Cash Basis Financial Reporting under the Cash Basis of Accounting. The financial statements comply with and conform to the form of presentation prescribed by the Accounting Standards Board of Kenya. The financial statements are presented in Kenya Shillings, which is the functional and reporting currency of the Project and all values are rounded to the nearest one Shilling. The accounting policies adopted have been consistently applied to all of the years presented. The financial statements have been prepared on the cash basis following the Government's standard chart of accounts. The cash basis of accounting recognises transactions and events only when cash is received or paid out by the Project. i. Recognition of revenue and expenses The Project recognises all revenues from the various sources when the event occurs and the related cash has actually been received by the Project. In addition, the Project recognises all expenses when the event occurs and the related cash has actually been paid out by the Project. ii. In-kind donations In-kind donations are contributions 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 of in-kind donations can be reliably determined, the Project includes such value in the statement of receipts and payments both as revenue and as an expense in equal and opposite amounts; otherwise, the donation is not recorded. iii. 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 a 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/period. 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 had not been surrendered or accounted for at the end of the financial year/period. 5 Kenya Water Security and Climate Resilience Project Reports and Financial Statements For the financial year ended June 30, 2015 SIGNIFICANT ACCOUNTING POLICIES (Continued) iv. Pending bills Pending bills consist of unpaid liabilities at the end of the financial year/period arising from contracted goods or services during the year/period or in past years/periods. As pending bills do not involve the payment of cash in the reporting period, they are simply disclosed as an Annex to the financial statements. 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. v. Budget The budget is developed on the same accounting basis (cash basis), the same accounts classification 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 Government of Kenya Budget Printed Estimates for the year. A high-level assessment of the Project's actual perfornance against the comparable budget for the financial year/period under review has been included in an annex to these financial statements. vi. 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. vii. 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. viii. 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, 2015 6 nys Water Security And Climate Resilience Project gepolts and Financial Statements For the financial year ended June 30, 2015 8.4 LOAN FROM EXTERNAL DEVELOPMENT PARTNERS During the 12 months to 30 June 2015 we received funding from development partners in form of loans negotiated by the National Treasury donors as detailed in the table below Loan Received from Bilateral Donor (Foreign Government) Loans Received from Multilateral Donors (International Organisations) IDA Donor Funds 11/7/2014 228,728 20,000,000 20,000,000 12,832,032 IDA Donor Funds 25/09/2014 297,394 26,349,300 - 26,349,300 27,826,590 IDA Donor Funds 28/10/2014 45,086,422 - 45,086,422 6,617,474 IDA Donor Funds 11/03/2015 3,275,130 299,180,385 -299,180,385 53,650,700 Total ___________________390,616,107 100,926,796 8 膠’一計叮任一！ _&! 今〕 ,I 一〕、！。 o C>O CD C'] kr) (D Ln en ö 25 6) y är (7\ 00 oc 0 1-: l 1-, GN kr) CD t- N co \r- Gn C:3 CD r- U2 :! - c) c) C<ý >,A 16 Cý Cý Cý -4 S4 ell KO kr) Ui <= Ln CD cq tn 02 en 00 -1 in U2 C) C) kn il. i- CD t- 92 Ln <=> t i 0 ý4 J-ý, \0 oc C) en 00 rn rn ci c: u M2 o 0 43 0 w -1ý 4) Cä c" cu m :2 >n Cn w U2 Q) d.) 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(2) al ý0 0 r: 0 o PLI r: cd CD 0 C.) 0 cd CD ed $Z CD 4) C,] 12 > cd v-ý m op Cc$ > kn C/) 0 cý cq 0 SPECIAL ACCOUNT STATEMENT For period ending 30th JUNE, 2015 Account No. 01268945650 Depository Bank STANCHART LONDON Address 22 BILLTERS ST EC3A2BE Related Loan (K) WAT. SEC & CL. RESI PRJ-5268 KE Credit Agreement 5268-KE Currency USD Part A - Account Activity Beginning balance of 1st July, 2014 as per C.B.K. Ledger Account Add: Total Amount deposited by World Bank 4,999,970.00 Total interest earnings if deposited in account Total amount refunded to cover ineligible expenditure Deduct: Total amount withdrawn 3,275,100.00 Total service charges if not included above in amount withdrawn Ending balance on 30th June,2015 1,724,870.00 AUTHORISED REPRESENTATIVE SIGNATURE: CENTRAL BANK OF KENYA DATE. 03 AUTHORISED REPRESENTATIVE EXTERNAL RESOURCES SIGNATURE: DEPARTMENT-TREASURY DATE NOTE:The ending balance as per Central Bank of Kenya Ledger Account and the off-shore Special Account as at 30th June,2015 have been reconciled and a copy of the supporting Reconciliation Statement is attached. KENYA WATER SECURITY AND CLIMATE RESILIENCE PROJECT STATEMENT OF SPECIAL (DESIGNATED) ACCOUNT RECONCILIATION FOR THE YEAR ENDED 30"h JUNE 2015 Credit No. IDA LOAN CREDIT NO.5268 -KE Bank Account No. 1000214244 Held with CENTRAL BANK OF KENYA NOTES USD 1 Amount advanced by IDA 5,000,000.00 Less: 2. Total amount Documented: 3. Outstanding amount to be documented: 5,000,000.00 Represented by: 4. Ending Special Account Balance as at 30"' June 2015: 1,724,870.00 5. Amounts claimed but not credited as at 30"' June 2015: 1,685,695.24 6. Amounts withdrawn and not claimed 1,589,434.76 7. Service charges (if not included in lines 5 and 6 above 8. Interest earning (if included in Special Account) 9. Total advance to Special Account year ended 30th June 2015: 5,000,000.00 Discrepancy between total appearing on lines 3 and 9 ( Notes: 1. Explain any discrepancy between totals appearing on lines 3 and 9 above (e.g. amount due to be refunded to cover ineligible expenditures paid from the Special /Designated. Account) 2. Indicate if amount appearing on line 6 are eligible for financing by the IDA_and provide reasons for not claiming the expenditures The amount appearing on line 6 are eligible for financing by the World Bank and shall be documented in the subsequent IFR'S AUTHORIZED REPRESENTATIVE 4y \ ac < RESOURCE MOBILIZATION DEPARTMENT - TREASURY DATE: ................ SPECIAL ACCOUNT STATEMENT . For period ending 30th June,2015 Account No. 1134042582 Depository Bank KENYA COMMERCIAL BANK Address MOI AVENUE Related Loan/ ENHANCING W'S & C R Credit Agreement NO. 0795 - KE Currency USD Part A - Account Activity Beginning balance of 1st July, 2014 as per C.B.K. Ledger Account 320,616.33 Add: Total Amount deposited by World Bank 1,096,070.29 Total Interest earnings if deposited in account Total amount refunded to cover ineligible expenditure Deduct: Total amount withdrawn 1,416,675.78 Total service charges if not included above in amount withdrawn Ending balance on 30th June,2015 10.84 AUTHORISED REPRESENTATIVE SIGNATURE CENTRAL BANK OF KENYA AUTHORISED REPRESENTATIVE EXTERNAL RESOURCES S16NATUR-- t44 DEPARTMENT-TREASURY DATE L2 -15 -- NOTE: The ending balance as per Central Bank of Kenya Ledger Account and the off-shore Special Account as at 30th June,2015 have been reconciled and a c6py of the supporting Reconciliation Statement is attached. KENYA WATER SECURITY AND CLIMATE RESILIENCE PROJECT STATEMENT OF SPECIAL (DESIGNATED) ACCOUNT RECONCILIATION FOR THE YEAR ENDED 30h JUNE 2015 Credit No. IDA LOAN CREDIT NO.5268 -KE Bank Account No. 1134042582 Held with KCB NAIROBI NOTES USD I. Amount advanced by IDA 1,645,326.52 Less: 1,645,309.12 2. Total amount Documented: 3. Outstanding amount to be documented: 17.40 Represented by: 4. Ending Special Account Balance as at 30"' June 2015: 10.84 5. Amounts claimed but not credited as at 30 June 2015: 6. Amounts withdrawn and not claimed 6.56 7. Service charges (if not included in lines 5 and 6 above 8. Interest earning (if included in Special Account) 9. Total advance to Special Account year ended 30'h June 2015: 17.40 Discrepancy between total appearing on lines 3 and 9 Notes: I. Explain any discrepancy between totals appearing on lines 3 and 9 above (e.g. amount due to be refunded to cover ineligible expenditures paid from the Special /Designated. Account) 2. Indicate if amount appearing on line 6 are eligible for financing by the IDA-and provide reasons for not claiming the expenditures The amount appearing on line 6 are eligible for financing by the World Bank and shall be documented in the subsequent IFR'S AUTHORIZED REPRESENTATIVE -A RESOURCE MOBILIZATION DEPARTMENT - TREASURY DATE:.... .......... ENTRAL BANK OF KENYA - RECONCILIATION STATEMENT AS AT: 30/06/2015 G.LA/CNO: 1000159243 OFF-SHORE A/C NO: 1134042582 KCB-PPF ENHAN WTER SECURITY-Q975 DETAILS CURRENCY AMOUNTS REMARKS ACTION TAKEN 1,BALANCE AS PER OFFSHORE STATEMENT: USD 10.84 2.ADD DEBITS NOT IN NRB 3LESS CREDITS NOT IN NRB 4.ADD DEBITS NOT IN OFFSHORE S.LESS CREDITS NOT IN OFFSHORE 6.BALANCE AS PER CBK LEDGER -10.84 10.84 Prepared By: MAJAU Checked by: Approved By: Date: 13/07/2015 Date: Date: Maikim: IIw ENIANCING WS&CR KßNYA COMMERCIAL BANK LTD. KCB MOT AVENUE - 4001 ACjOJNI' NO. CURRHNCY P.O BOX 30081, 00100 NAIROBI 1340425<2 TEL:.20244939 FA X: 20244939 A CCOUNT TYPE CURRENT STIEET NO: 000579 DATE TRANSACTION DETA [LS MONEY OUT MONEV IN LEDGER BAL 01/06/20 15 l,I.ANCH- R/FWI) 10.84 30/06/2015 lAl.ANC. CAFM W) 10.84 ENHANCTNG WS&CR PROJECT-DEPOSIT P.O. BOX 60000 00200 NAIROBI July 30. 20 I5 3:51:29 pm i Page I of I