ENHANCING THE CLIMATE RESILIENCE OF THE WEST COAST ROAD SCF-PPCR GRANT NO.TF013579 Project Financial Statements for the Financial Year ended 30th June 2016 1. Management Verification 2. FY15/16 Project Financial Statement Ending 30th June 2016 ENHANCING THE CLIMATE RESILIENCE OF THE WEST COAST ROAD SCF-PPCR GRANT NO.TFO 13579 Project Accounts for the Financial Year Ended 30th June 2016 I, Lavea Tupa'imatuna lulai Lavea, Chief Executive Officer, of the Ministry of Finance, Apia, Samoa verify that: - the accompanying Project Accounts for the year ended 30th June 2016, are to the best of my knowledge, a correct and accurate record of transactions for the said period. (Lavea u imatuna lulai Lavea) CHIEF E ECUTIVE OFFICER Dated: 19th May 2017 ENHANHANCING CLIMATE RESILIENCE FOR WEST COAST ROAD PROJECT (ECRWCR) FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2016 ENHANCING CLIMATE RESILIENCE FOR WEST COAST ROAD PROJECT FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016 CONTENTS Page 1. Report of the Auditor 1 2. Certification by Management 2 3. Statement of Cash Receipts and Payments 3 4. Statement of Comparison of Actual and Budget Amounts 4 5. Notes to the Financial Statements 5-7 S. Supplementary Schedule to Comparison of Actual and Budget Amounts 8 Telephone: 27751 P.0 Box 13 Fax: 24167 APIA, SAMOA Email: lnfo@audit.gov.ws Website: www.audiltgov.ws Please address all correspondences to the Controller and Auditor General AUDIT OFFICE REPORT OF THE AUDIT OFFICE TO THE MINISTRY OF FINANCE OF THE GOVERNMENT OF SAMOA We have audited the accompanying financial report for Enhancing Climate Resilience for West Coast Road Project categorized as SCF-PPCR Grant No. TF 013579 for the financial year ended 30 June 2016, which comprises the Statement of Receipts and Payments, Statement of Comparison of Actual and Budget amounts, and a summary of significant accounting policies and other explanatory notes. Responsibility for the Financial Report The accompanying set of financial report is the responsibility of the management of the Implementing Agency - Land Transport Authority supported by the Executing Agency - Ministry of Finance. The policy of the National Executing Agency - Ministry of Finance, is to prepare the financial report in accordance with the requirements of the Donor - World Bank and on the cash disbursements basis. On this basis, donor funds are recognized when received and expenditure is recognized when paid rather than when incurred. The Implementing and Executing Agencies are also responsible for monitoring and ensuring all relevant project arrangements are in accordance with the terms and requirements agreed upon with the Donor, and ensure that all relevant program arrangements and activities are aligned with these terms and requirements. They are also responsible for any such internal control it determines as necessary to enable the preparation of financial reports that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express an opinion on these financial reports based on our audit. We conducted our audit in accordance with International Standards on Auditing (ISA). Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial reports are free from material misstatements and that funds provided for the program were expended in accordance with the Grant Agreement by World Bank. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial reports. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement in the financial reports, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the preparation of the project financial reports 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 controls. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of judgments made by management, as well as evaluating the presentation of the financial reports. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements present fairly, in all material respects, the Receipts and Payments of the Enhancing Climate Resilience for West Coast Road Project for the financial year ended 30 June 2016. We have obtained all the information and explanations that we required, to conclude that management has kept proper accounting records that support and validate the financial information disclosed in the financial report and the funds for the project have been used for purposes of the project in accordance with the requirements of the Grant Agreement. Apia, Samoa Fuimaon all'G Afele 19th May 2017 CONTROLLER AND AUDITOR GENERAL ENHANCING CLIMATE RESILIENCE FOR WEST COAST ROAD PROJECT CERTIFICATION BY PROJECT'S MANAGEMENT FOR THE YEAR ENDED 30 JUNE 2016 We certify that the attached financial statements for the Enhancing Climate Resilience of the West Coast Road Project (ECRWCR) comprising of the Statement of Cash Receipts and Payments, Statement of Comparison of Actual and Budget and Notes forming part of the financial statements for the period from 01 July 2015 to 30 June 2016 (12 Months): a) gives a true and fair view of the matters to which they relate; and b) have been properly drawn up in accordance with the accounting policy described in Note 2 to the financial statements. We are not aware of any circumstances which would render any particulars included in the financial statements to be misleading or inaccurate. We authorise the attached financial statements for issue on /.!... / . t /.. .on behalf of the Management of the Enhancing Climate Resilience of the West Coast Road (ECRWCR). Sign Signature Lavea Tupa'imatuna lulai Lavea Leasi Vainalepa Galuvao CHIEF EXECUTIVE OFFICER CHEEF EXECUTIVE OFFICER Ministry of Finance Land Transport Authority Apia, Samoa Apia, Samoa Page 2 Statement of Cash Receipts and Payments Enhancing Climate Resilience for West Coast Road Project For the 12 months ended 30 June 2016 GRANT NUMBER TF 013579 Currency $WST 30 June 2016 30 June 2015 Receipts/Payments by: Receipts/Payments by: Notes GOS Third Parties GOS Third Parties Receipts 2.6 IBRO TF 013579 4 506,363.43 502,189.20 IBRD TF 013579-Direct payments - - GoS - Pre Financing 5,9 308,560.05 466,565.44 Reimbursement - GoS Pre-financing (466,565.44) GoS Counterpart Funds 6.7 46,28401 69,984.82 Total receipts 394,642.1 1,038,739.5 Payments 2.7 1.2 Design and Supervision Services 118,486.48 265,554.44 2.1 Assessment of Samoa Road Network 1,031,806.58 - 2.2 Climate Change Specialist 18,917.50 4,491.02 3.1.1 Consulting Firm as PMU 375,693.41 742,881.21 Bank Charges 162.75 120.44 Total payments 7 1,545,066.72 1,013,047.11 Increasel(Decrease) in Cash (1,150,425) 25,692 Foreign Currency Gains and Losses Bank Revaluations 9,152 123,292 Total Foreign Currency Gains and Losses 9,152 123,292 Net Cash Movement (1,141,273) 148,984 Summary Cash Balances: Opening Balance 1,282,000 1,133,016 Plus Net Cash Movement (1,141,273) 148,984 Closing Balance 2.5, 3 140,727 1,282,000 Page 3 > 4' O 040- f 00 c cm 5iÌL o.a 2 D w 10 2 - .SC o e,' cOh e co E * EW C>> wD =t E -c, etlta o ID m 0 w 40 04 0 ro O ® Cf 0 r= - : : p4. . BE flER Ca .ca r= 02 4»12 > Da 0> G> S, 0:'~~tr O r. M Ci u- .- li m L - 02 0 .- gr_ - 4 a E . <'4 < W4 <'4 <'4s i e, . O4'-r.ogee , 0=< 04 0 fl --c 0 0 e,> 4 * g 665&< ck6 æ 6 6 6 5 8 ' 0o - 04e o z'104. - ., = > E4 *' l" f *" fl 4 .Cf.l$oegj .$ Ctoy :-O$ . g O ( W -C 0 Lae * 0 -Ei.¾ --E s - | a' ! EE - O '5040flo - E'4.: > 40 4- 40 0404 E0 <4 f 40 4o040cro 40n s 0es 0 0 0 4040 40 40 fl ENHANCING CLIMATE RESILIENCE FOR WEST COAST ROAD PROJECT NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2016 1. GENERAL INFORMATION The Government of Samoa (GoS) through the Implementing Agency - Land Transport Authority (LTA), has received a grant for assistance for Enhancing the Climate Resilience of the West Coast Road Project (CRWCR) from the International Bank for Reconstruction and Development (IBRD) acting as an implementing entity of the Pilot Program for Climate Resilience (PPCR) under the Strategic Climate Fund (SCF). The CRWCR is a land transport infrastructure project with the development objectives to improve the climate resilience of the West Coast Road and enhance Samoa's capacity to develop a more climate resilient road network. The Enhancing the Climate Resilience of the West Coast Road Project Grant agreement was officially signed on the 28th January 2013. The value of the Grant is USD 14,800,000,00. The closing date of the project is 31st August 2018. CRWCR is implemented under the overall guidance, coordination and monitoring of the Project Steering Committee. The Project Management Unit, IPA Ltd, helps to manage and implement CRWCR and ensure that the World Bank's fiduciary, safeguards and reporting requirements are met. A Special Purpose Account or Designated Account (DA) for the CRWCR was established at the Central Bank of Samoa (CBS),and is governed by the Grant Agreement. The purpose of the CRWCR DA is to disburse funds for Project activities. The CRWCR uses four disbursement methods: (a) advances into the DA; (b) direct payment; (c) reimbursement of GoS pre-financed expenditure; and (d) special commitment. The CRWCR is to be implemented in accordance with the principles, structures and responsibilities set out in the Grant Agreement. 2. 2.1 Basis of Preparation They are prepared on the basis of historical Cash Basis IPSAS Financial Reporting Under The Cash Basis of Accounting. The accounting policies have been applied consistently throughout the period. 2.2 Reporting Entity The financial statements are separate financial statements for the ECRWCR project and do not form part of any Government Ministry or Government State Owned Financial Statements. 2.3 Definition of Categories of Payments Payments made under "GoS" are payments made by the GoS and made by the World Bank, Payments made Payments made by 'Third Parties' are payments made by Others. 2.4 Reporting Currency The financial statements are presented in Samoan Tala (WST$). Transactions in currencies other than WST are translated into WST using the actual exchange rate applied by the CBS (where the transaction are paid from the DA) or at the applicable rate ( where the transactions are paid by Third parties) 2.5 Cash Balances Cash balances is represented by the CBS DA for the Project. Page 5 CNHANCING CLIMATE RESILIENCE FOR WEST COAST ROAD PROJECT 4OTES TO THE FINANCIAL STATEMENTS .0 JUNE 2016 2.6 Receipts Grants are received from the World Bank for IBRD TFOl 3579. The amount is based on a request from the GoS through the MOF for approval and transfer from the World Bank. Receipts also comprise payments made directly by the World Bank to the vendors for the Project, and prefinanced expenditures the GoS to vendors before receipt of reimbursement from The World Bank. In addition, GoS contribution (counterpart funds) for the project, which is a total of USD2.22m based on the Project Appraisal Document (PAD). 2.7 Payments Payments relate to all expenditure payments made to suppliers for goods and services relating to the Project. Payments are certified and approved by the CEO-LTA and CEO - MoF for projects activities implemented by respective agencies,and are subsequently paid by the MoF in accordance with the Program Operational Manual (POM) Payments are made in line with the Grant Agreement between the Independent State of Samoa and the IBRD- World Bank. Any variation to the Project Agreement would be submitted h LTA to MOF for consideration 30 JUNE 30 JUNE 3 CASH AT BANK 2016 2015 S S CBS DA 06-083: Balance at year end - USD 55,255 499:980 Balance at year end - WST (CBS 0.3926USD/WST) 140,742 1,282,000 140,742 1,282,000 4 RECEIPTS - IBRD TF 013579 FY1S16 FY1415 CBS DA 06-083 506,363 502,189 Direct Payments Total* 506,363 502,189 *Exclude GoS pre financed amounts. 5 RECEIPTS - GoS Prefinanced FY1516 FYI415 S S Eligible project expenditures prefinanced by the GoS and reimbursed 308,560 466,565 from the IBRD TF0 13579 Grant Total 308,560 466,565 6 GoS Counterpart Funds Actual GoS contribution for the year, utilised mainly for VAGST for project payments. For FY15 16, and year to date actual, was mainly for the PMU VAGST payments that were not eligible for financing under the TFOI 3579. 7 TOTAL PAYMENTS FY15/16 FV14/15 S 5 CBS DA 1,190,222.66a 476,496,85b Direct Payments - - GoS Prefinancing 308,560.05 466,56544 GoS Counterpart Funds 46,284.01 69,984,82 1,545,066.72 1,013,047.11 Inclusive of VAGST amount of SATI52,757 82 equivalent to USD59,127.02 , to be reimbursed by GoS counterpart funds in FY1617. Inclusive of VAGST amount of SAT25,102 95 equivalent USD1 1,077.93 to be reimbursed by GoS counterpart funds in FY1617. FY1516 FY1415 S $ 1. Improving Climate Resilience of West Coast Road 15,454.86 - 2 Vulnerability Assessment of the Receipienfs Road Network 134,583.47 - 3. Project Management 2,719.49 25,102.95 152,757.82 25,102.95 'First year of appropriation in the GoS budget estimates is FY1617 with the approved budget of SAT214,204. This amount would be utilised to reimburse TF013579 funds as in ' and b In addition, the appropriate Journal Entry for dand' below. dTotal amount of VAGST for prefinanced expenditures on PRACT16; SAT37,847.95 and GLACTI6 (MoF) VAGST budget account 1-9052-QO1 -776101: SAT8,796,05. 'Total amount of VAGST for prefinanced expenditures on PRACTI 5. Page 6 ENHANCING CLIMATE RESILIENCE FOR WEST COAST ROAD PROJECT NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2016 8 FACILITY AVAILABLE Grant in historical figures including undisbursed balances at the end of the year. Signed Amount Disbursed Remaining Balance IBRD TF013579 USD 14,800,000 USD 897,837 USD 13,902,163 9 SUBSEQUENT EVENTS GoS - Pre Financing amount of 308,560.05 , to be reimbursed from IBRD TF013759 in FY 1617 Page 7 - - æco occe - ··-.-^æOß - -oe - - .g E E ? 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