FINANCIAL AUDIT REPORT Dec 31, 2019 Sustainable Persistent Organic Pollutants (POPs) Management Project (SPMP) financed by the World Bank (WB) Under credit agreement TF 017336 I. abl INDEPENDENT AUDIT REPOR .................................................................................................. 3 Audit Objctives ..................................................................................................................... 5 Standards and Ethics ................................................................................................................ 5 Audit Scope ............................................................................................................................. 6 Procedures perform ed ............................................................................................................. 6 INFORM ATION ABOUT THEGRANT .......................................................................................... 8 FINANCIAL STATEM ENT REPORT .............................................................................................10 1- STATEMENT OF SOURCES ANDUSES ....................................................................................... 10 2- STATEMENT OF DESIGNATED ACCOUNT RECONCILIATION.......................................................11 3- STATEM ENT OF EXPENDITURES (SOE) W ITHDRAW AL SCHEDULE..................................................12 4- STATEM ENT OF ASSETS...............................................................................................................13 FACTUAL FINDINGS FOR FINANCIAL STATEM ENTS...................................................................14 1- SIGNIFICANT ACCOUNTING POLICIE ........................................................................................... 14 2- INTERNAL CONTROL SYSTEM ......................................................................................................15 3- CURRENCY EXCHANGE VARIANCE ............................................................................................... 16 4- GOODS, NON-CONSULTING SERVICES, CONSULTANTS' SERVICES & TRAINING..............................16 5- OPERATING COSTS ..................................................................................................................... 16 6- CASH FLOW RECONCILIATION .................................................................................................... 17 7- W ORKING PAPER REVIEW OF INDIVIDUAL TRANSACTION............................................................18 Factua Finding ...................................................................................................................... 23 2 To the Management of Sustainable Persistent Organic Pollutants (POPs) Management Project (SPMP) 31-December- 2019 We have audited the financial statements of Sustainable Persistent Organic Pollutants (POPs) Management Project (SPMP) financed by the World Bank (WB) under credit agreement TF 017336 represented in Statements of Sources and Uses of Funds and Statement of Expenditures (SOEs) for the period from January 1st, 2019 to December 31st, 2019, designated account reconciliation as of December 31, 2019.Our responsibility is to express an independent opinion on these financial statements based on our audit. Respective responsibilities of the auditors It is our responsibility to form an independent opinion, based on our audit, on those statements and to report our opinion to you. Basis of opinion We conducted our audit in accordance with International Standards on Auditing (ISA) and such other specific procedures requested by the Governing Body. An audit includes examination, on a test basis, evidence supporting amounts and disclosures in the financial statements. It also includes an assessment of the significant estimates and judgments made by the governing body in the preparation of the financial statements, and of whether the accounting policies are appropriate to the Project's (group's) circumstances, consistently applied and adequately disclosed. We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide us with sufficient evidence to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or other irregularity or error. In forming our opinion, we also evaluated the overall adequacy of the presentation of information in the financial statements. Opinion: In our opinion: The financial statements referred to above and the related notes, present fairly in all material respects, the financial position, the statement of sources and uses of funds, 0rnd-account reconciliation of Sustainable Persistent Organic Pollutants (POPs) Mana a t 3 (SPMP) as of December 31, 2019. Expenditures provided in the statement of expenditures are properly supported and represent eligible expenditures under the loan agreement. Also, the procurements of goods/Non consulting services, consulting services incurred during the year were conducted in accordance with the World Bank procurement guidelines under IBRD Loans and IDA Credits, dated January 2011 (Procurement Guidelines). Our audit did not identify material internal control weakness associated with project internal controls or material instance of non-compliance with the agreement's terms and applicable laws, rules and regulations. Yours sincerely, Auditors' signature Name of Auditor signing [Dr. Hesham Mahmoud] Auditors' address [Villa 3, Kasem street, Dokki, Giza, Egypt] Date of signature < 16 Feb. 2019> 4 idi The objectives of this audit are to express an opinion on whether: 1. The Financial Report presents fairly, in all material respects, the actual expenditure incurred and the revenue received for the grant financed by the World Bank (WB) under credit agreement TF 017336, for the period from 1 January 2019 till 31 December 2019 in conformity with the applicable contractual conditions; and 2. The projects funds received from the World Bank (WB) under credit agreement TF 017336 have, in all material respects, been used in conformity with the applicable Contractual Condition and the Project Financial Statements (PFS) show true and fair presentation of the Project's financial position as of the end of each fiscal year and funds receipts and expenditures incurred during the period then ending. 3. The Procurement Guidelines of the World Bank have been properly applied and in accordance with the Project's Loan Agreement. 4. The Internal Control System designed, set up and operated by the Entity for the purpose of managing risks to the achievement of the objectives of the project, was suitable designed and operated effectively for the Egyptian Environmental Affairs Agency (EEAA) Project for the period from 1 January 2019 till 31 December 2019. 5. Determine if the Statement of Assets presents properly (i.e. number, description and value of assets) and completely (i.e. all assets covered by the expenditure in the Financial Report) the assets acquired for the Egyptian Environmental Affairs Agency (EEAA) Project for the period from 1 January 2019 till 31 December 2019 is in conformity with the Contractual Condition. Our engagement was undertaken in accordance with: - International Standard on Related Services ('ISRS') 4400 Engagements to perform Agreed-upon Procedures regarding Financial Information as promulgated by the International Federation of Accountants ('IFAC); - The Code of Ethics for Professional Accountants issued by the IFVU, 5 The audit of Project accounts and funds flow is considered as special purpose contractual agreement audit which in addition to compliance with International Standard on Auditing, the auditor need to consider the World Bank reporting requirements, compliance with the World Bank Procurement Guidelines. The audit scope includes: a) The audit will be carried out in accordance with the International Standards on Auditing, having regard to relevant financing agreements and World Bank specific requirements, and should pay special attention to the following: b) All funds provided to the Project have been used, accounted for and classified in accordance with the relevant financing agreements; c) Goods and services financed have been procured in accordance with the relevant financing agreement; d) All necessary copy of supporting documents, records, and accounts have been kept in respect of all project ventures. Clear linkages should exist between the books of account and reports presented to the Bank; e) Where Designated Accounts have been used, they have been maintained in accordance with the provisions of the relevant financing agreement; f) Compliance with specific covenants of the Loan Agreement and Project Appraisal Document (e.g., compliance with the short-term and long-term borrowing conditions, cash flow covenant); g) Determine eligibility of expenditures claimed under Statement of Expenditures submitted to the World Bank for replenishment. This is in addition to substantiation of these expenditures; h) Review all correspondences with the World Bank in relation to the Project including copies of the Aide Memoires, Mission Reports, and assess progress on all financial issues. As requested, we have only performed the procedures listed in Annex 3 of the terms of reference for this engagement. Bank policy requires that projects be supervised to ensure that loan/credit proceeds are used only for the purposes for which the loan/credit was granted, with due regard to economy, efficiency, and the sustainable achievement of the project's development objectives. Under the transaction-based disbursement method, loan proceeds are disbured "the basis of Statements of Expenditures 6 (SOEs) for the expenditures below a threshold which is established by the legal agreement for each project. The SOE review is to ensure eligibility of expenditures, adequacy and sufficiency of documentation, and proper procedures for and controls over SOE use. The objectives of the review are to ensure that the funds disbursed under SOEs are used for the purposes intended in accordance with legal agreements, and mitigating chances of misuse. This review process includes the following: a) Determine whether appropriate levels of review and approval within the internal control system are in place regarding SOE disbursement; b) Determine whether SOE procedures are properly used in accordance with the project's legal agreement(s); c) Determine whether the project has maintained adequate supporting documentation to support claims for Bank disbursements on the basis of SOEs; d) Verify that expenditures are eligible for financing by the World Bank and are properly accounted for in terms of the disbursement categories, and that the correct disbursement percentage has been applied; e) Identify any ineligible, questioned and unsupported expenditures, and where identified, recommend follow up actions; and f) Identify possible improvements in the project financial management practices in the light of deficiencies identified during the review. The SOE review process consists of: Obtain the SOE-based withdrawal applications from the Country disbursement team, and identify and select a sample of SOE withdrawal applications and transactions for field review. A random sample of SOEs shall be selected from the list of SOE disbursement applications available within the Bank. ICS - the disbursement information system is another way to obtain information about withdrawal applications. The selection shall be based on (i) the nature, size and expected number of contracts below the SOE threshold; (ii) the Bank's previous experience with the particular borrower; and (iii) reasonable available time for review and cost-effective consideration. Normally 40% of SOE-based expenditures should be selected for review. The number of transactions and the amount of expenditures should be taken into account Review of the control procedures regarding SOE disbursement. The reviewer should consider the effectiveness of the following controls and document any ingtanpes where controls are lacking or are considered in need of strengthening: Qt 7 Documentation review. The documentation of a sample of withdrawal applications is reviewed. The documents that normally support payments are (a) evidence of receipt, invoice or performance, (b) evidence of payment, and (c) proper procurement documents Verify eligibility of expenditures. The review determines whether the expenditures are properly supported and are eligible for Bank disbursement in accordance with legal agreements. SOURCES OF INFORMATION The Report sets out information provided to us by you in response to specific questions or as obtained and extracted from your accounts and records. USE OF THIS REPORT This Report is solely for the purpose set forth above under objective. PROJECT DESCRIPTION The project development objective is to improve the management and disposal of targeted stockpiles of obsolete pesticides, including Persistent Organic Pollutants (POPs) and Polychlorinated Biphenyl (PCBs), in an environmentally sound manner. The project consists of the following two parts: Part A: Destruction of High-Risk Stocks ot Obsoiete Pesticide i. Carrying out an environmentally sound program for the safe packaging, removal, transportation, export and destruction of approximately 1,000 tons of identified high risk stocks of pesticides and other high-risk obsolete pesticides, following a risk based prioritization approach, in state-of-the-art facilities overseas, including: (a) disposal of the stockpiles of about 235 tons of Lindane at the Al-Adabeya port storage facility; disposal of the stockpiles of about 470 tons of pesticides at the El Saff storage facility; and (c) the identification of all high risk stockpiles, and dispose of another approximately 100 tons of high risk stocks currently scattered across Alexandria, Safaga, Al-Adabeya, and BaniSouf for number of..Ltk. 8 ii. Technical Upgrading of Ministry of Agriculture and Land Reclamation (MALR) Central Agricultural Pesticides Laboratory to identify unlabeled products uncovered, as necessary, and to analyze pesticide samples. iii. Enhancing the environmental management system of MSEA/EEAA to promote the identification, packaging, removal, transportation and destruction of high-risk stocks of obsolete pesticides. This will include training of staff of EEAA and the Cooperating Ministries to track and monitor obsolete stockpiles and ensure the ultimate destruction of high-risk stockpiles, Project monitoring and evaluation and enhancing EEAA and MALR system of tracking obsolete pesticides, and dissemination of results, including raising public awareness. Part B: Decontamination of PCB-Containing Transformer Oils i. Carrying out of a program for the management of PCBs and PCB containing equipment focusing on PCBs in the public electricity generation, transmission and distribution sectors, including: (a) the acquisition and installation of equipment for dichlorination and purification of low to medium-concentration stocks of approximately 1000 tons of PCB contaminated oils, which will produce an oil suitable for reuse in transformers; (b) providing technical assistance to EEAA and MOE E/EEHC staff to address the decommissioning of PCB containing equipment; and (c) provision of laboratory support and the acquisition and utilization of instruments, electronic equipment and chemicals for sampling to measure the level of PCBs. ii. Enhancing the environmental management system of MSEA/EEAA to promote the identification and decontamination of PCB-contaminated oils, including training of staff of EEAA and the Cooperating Ministries to track, monitor and decontaminate PCBs and PCB containing equipment, supporting Project monitoring and evaluation and enhancing EEAA's system of tracking PCBs and PCB containing equipment to ensure sustainable project outcomes, monitoring of project performance indicators, and dissemination of results, including raising public awareness. 9 For the period ended December 31, 2019 W.B Cumulative Description contribution contribution USD $ Funds Receipts: Opening Balance January 1,2019 466,133.25 3,172,374.25 Advance received Direct Payment 558,638.99 558,638.99 Replenishments received 930,678.08 930,678.08 Currency Exchange Variance Interest Revenues Total Funds 1,955,450.32 4,661,691.32 Less: Expenditures from SOE Goods, Non- Consulting Services, 1,421,733.67 3,866,642.84 Consultant's Services & Training Operating costs 84,153.95 345,485.78 Total Expenditures 1,505,887.62 4,212,128.62 Grant Balance 449,562.70 449,562.70 Adjustments: Changes in Petty Cash during the period 0.00 0.00 Petty Cash on hand in SPMP_PMU 0.00 0.00 Book Balance as of Dec 31,2019 449,562.70 449,562.70 Balance per bank statement as of Dec 31,2019 449,562.70 449,562.70 The difference between the balance of the books and 0.00 0.00 the bank balance 0.00_0.00 10 For the period ended December 31, 2019 W.B contribution W.B Cumulative Description USD$ contribution USD$ Bank Statement Balance on January 1,2019 466,133.25 3,172,374.25 Add: Advance received Direct Payment 558,638.99 558,638.99 Replenishments received 930,678.08 930,678.08 Currency Exchange Variance Interest Revenues Present Outstanding amounts advanced to the Designated 1,955,450.32 4,661,691.32 Account Designated Account Closing Bank Balance (30 Dec,2019) 449,562.70 449,562.70 Add: Expenditures from SOE Goods, Non- Consulting Services, 1,421,733.67 3,866,642.84 Consultant's Services & Training Operating Costs 84,153.95 345,485.78 Total Expenditures 1,505,887.62 4,212,128.62 Add: Changes in Petty Cash during the period Petty Cash on hand in SPMP_PMU 0.00 0.00 Total Funds received during the period 1,955,450.32 4,661,691.32 Financial Procurement ConsultarT Project Manager 11 For the period ended December 31, 2019 This statement includes the replenishments received from the World Bank during the reviewed period. All figursin USD $ Month J Avance ReplenishmentTDirect Paymert Total Reconciliation account 50.00 6-Feb 121,770.35 121770.35 30-Apr 119,465 18 119465.18 25-Jul 340,900.00 340900.00 3-Oct 246,758.23 246758.23 6-Nov 217,688.99 217688.99 12-Nov 442,684.32 442684.32 Total 930,678.08 558,638.99 1,489,267.07 12 For the period ended December 31, 2019 We have audited the statement of assets for SPMP with the following procedures: a. We have Reviewed procurement procedures to determine that sound commercial practices including competition were used, reasonable prices were obtained, and adequate controls on qualities and quantities were received, b. The purchase and procurement of assets and compliance with Agreement Terms and Conditions. We have examined supplies (e.g. vehicles, equipment, tools, various materials and products for compliance with procurement rules as per agreement terms and conditions. c. Assess the existence of assets (e.g. physical inspection of assets), valuation, ownership, recording and classification and disclosure of assets; In our opinion, Expenditures provided in the statement of assets are properly supported and represent eligible expenditures under the loan agreement. Also, the procurements of goods and equipment's incurred during the year were conducted in accordance with the World Bank pr)curement guidelines under IBRD Loans and IDA Credits, dated January 2011 (-ocurement Guidelines'. 13 For the period ended December 31, 2019 The significant accounting policies adopted as follows: SPMP project use the cash method of accounting for ease of administration and accountability of funds. The cash method provides a clear and concise audit trial from the accounting records to the certified fiscal report. The Accounting Records are as follows: a General Journal b) Ledger Account c) Iinancial Reports The Accounting Reporting Cycle are as follows: 1. 'inancial Report 2. Ledger Account 3, General journal 4. Accounting forms 5. Supporting Documents e.g. (contracts, invoices,.. .etc.) The financial statements have been prepared under the basis of cash receipts and cash disbursements. The significant accounting policies adopted as follows: a. Accounting convention The statements are prepared in accordance with the cash basis convention. b. Taxation The World Bank Loan should not be used to pay any sort of taxes. Taxes due on purchased goods or services are charged to the Egyptian party. The Project Management Committed with the World Bank regulations in this regard during the audited period. c. Expenditures Expenses are incurred when actually paid. 14 Internal control is defined as a process affected by the entity's management, and other personnel designed to provide reasonable assurance regarding the achievement of the following objectives: 1. Reliability and integrity of financial reporting. 2. Effectiveness and efficiency of operations. 3. Safeguarding of assets, and compliance with contract agreement regulations Summary of SPMP internal controls A. Independent checks on performance and proper valuation of recorded amounts Document/Activity Responsible Official(s) Ielection of consultant Technical Committee Evaluation of the performance of the consultant Project Manager/ National - 'rojict "irector prop-r -porting of the financial data Financial Procurement Consultant Overall supkrvision of financial and technical work Project Manager/ National Project Director B. Segregation of duties Document/Activity Responsible Official(S) Evaluation of bids and proposals Procurement Committee Approval for selection Project Manager Approval of reports Project Manager Preparation of check/payment Financial Specialist Review of financial procedures Financial Manager/Ministry of finance representative in EEAA Signature on check/payment Project Manager/Ministry of finance representative in EEAA Bookkeeping Financial Specialist Check distribution Financial Specialist 15 In our opinion, SPMP project use adequate authorized level of internal control to maintain disbursements for approving transactions before the procurement process & other disbursements and in checks inquiry. 3- R The functional currency of the project is the United States Dollars (USD $) , accordingly all the transations of the Egyptian Pounds are translated according to the official exchange rate and revaluation of the currency exchange rate occurs according the spot rate of the Central Bank of Egypt on the date of cashing the check. This account represents amounts withdrawn through the following: Current WB Cumulative WB Contribution Contribution USD$ usi$ Goods, NQn consulting services, Consultants services, Training 1,421,733.67 3,866,642.84 Total cash disbursed 1,421,733.67 3,866,642.84 5- This account represents amounts withdrawn through the following: Current WB Cumulative WB Contribution Contribution USD $ USD $ Operating costs 84,153.95 345,485.78 Total cash disbursed 84,153.95 345,485.78 16 Cash Flow Reconciliation of Sustainable Persistent Organic Pollutants (POPs) Management Project (SPMP) for the period from 1Uanuary 2019 to December 31, 2019 Description USD $ Opening balance as per cashier and bank statements 466.1 33.25 asatl-1-2019 A RECEIPTS Advances/disbursements from the World Bank 1,489,317.07 Interest received 0 Total Receipts B 1,489,317.07 Payments Payments made (Goods,non-consulting services, consultants 1,421,733.67 services and training) Operation costs expenditures 84,153.95 Other Disbursements 0 Total payments C 1,505,887.62 Calculated balance D (D=A+B-C) 449,562.70 Petty Cash in hand 0 Balance of account no (4/082/18424/1) in Bank (Central Bank) held in 449,562.70 currency (in USD) Total balance as per cashier and bank statements as at (31/12/2019) E Differences in receipts and income in financial report 0 Difference in payments and expenditure in the financial report (2) 0 Difference in payments and expenditure in the financial report 0 Total Project funds as at (31/12/2019) F 449,562.70 Differences G=F-D 0.00 17 Credit No, Grant Agreement TF017336 Sustainable Persistent Organic Pollutants Project Name (POPs)Management Project (SPMP) Application No. 882 SOF page No. item No. 12-186 Amount of transaction USD $ 184,466.68 Disbursement category Goods Reporting period September 23,2019 Supply & Installation of Laboratory - Description ot expenditures Agilent Liquid Chromatography Mass Spectrometry (LC-MS). nof documents Whether available (Yes, Whether acceptable (Yes, No, NA) No, NA) 1) procurement documents Yes Yes 2) purchase contract / order Yes Yes 3) letter of credit NA NA 4) supplier's invoice and certificate of origin Yes Yes 5) shipping documents NA NA 6) contractor's or consultant's invoices or certificates 7) other evidence of receipt of goods or services Yes Yes 8) force account records Yes Yes 9) recurrent cost records NA NA 10) authorization for payment Yes Yes 11) evidence of payment Yes Yes 12) accounting records Yes Yes Conclusion: - Whether the expenditures are eligible for the Bank financing (Y/N): Y 2. Whether the expenditures are properly supported and accounted for (Y A . Comments and recommendation: None 18 Credit No. Grant Agreement TF017336 Sustainable Persistent Organic Pollutants Project Name (POPs)Management Project (SPMP) Application No. 874 SOE page No. / item No. 12-184 Amount of transaction USD $ 11,290.00 Disbursement category Consulting Services Reporting period September 11, 2019 PCBs Intr. Consultant Feasibility Study Description of expenditures for Decontamination Tech. Description of documents Whether available (Yes, Whether acceptable (Yes, No, NA) No, NA) 1) procurement documents Yes Yes 2) purchase contract / order Yes Yes 3) letter of credit NA NA 4) supplier's invoice and certificate of origin No No 5) shipping documents NA NA 6) contractor's or consultant's invoices or Yes Yes certificates 7) other evidence of receipt of goods or services Yes Yes 8) force account records Yes Yes 9) recurrent cost records NA NA 10) authorization for payment Yes Yes 11) evidence of payment Yes Yes 12) accounting records Yes Yes Conclusion: -. Whether the expenditures are eligible for the Bank financing (Y/N): Y 2. Whether the expenditures are properly supported and accounted for (Y/N): Y 3. Comments and recommendation: None 19 Credit No. Grant Agreement TF01 7336 Sustainable Persistent Organic Pollutants Project Name (POPs)Management Project (SPMP) Application No. 1060 SOE page No. / item No. 17-267 Amount of transaction USD $ 17,675.77 Disbursement category Consultant Service Reporting period December 29, 2019 ESIA Study for Identification, t oClassification & Prioritization, in Alexandria & North Delta (30% upon Deliverables) Whether available (Yes, Whether acceptable (Yes, Description of documents No'A o A No, NA) No, NA) 1) procurement documents Yes Yes 2) purchase contract / order Yes Yes 3) letter of credit NA NA 4) supplier's invoice and certificate of origin No No 5) shipping documents NA NA 6) contractor's or consultant's invoices or Yes Yes certificates 7) other evidence of receipt of goods or services Yes Yes 8) force account records Yes Yes 9) recurrent cost records NA NA 10) authorization for payment Yes Yes 11) evidence of payment Yes Yes 12) accounting records Yes Yes Conclusion: 1. Whether the expenditures are eligible for the Bank financing (Y/N): Y 2. Whether the expenditures are properly supported and accounted for (Y/N): Y 3. Comments and recommendation: None 20 Credit No. Grant Agreement TF017336 Sustainable Persistent Organic Pollutants Project Name (POPs)Management Project (SPMP) Application No. 1007 SOE page No. / item No. 14-212 Amount of transaction USD $ 64,552.21 Disbursement category Goods Reporting period October 20, 2019 Final - Supply and installation of laboratory equipment for the Central Agricultural Pesticides Laboratory - Infrared Spect oscopy (IRS) Whether available (Yes, Whether acceptable (Yes, Description of documentsNoNAN,N) No, NA) No, NA) 1) procurement documents Yes Yes 2) purchase contract / order Yes Yes 3) letter of credit NA NA 4) supplier's invoice and certificate of origin Yes Yes 5) shipping documents NA NA 6) contractor's or consultant's invoices or Yes Yes certificates 7) other evidence of receipt of goods or services Yes Yes 8) force account records Yes Yes 9) recurrent cost records NA NA 10) authorization for payment Yes Yes 11) evidence of payment Yes Yes 12) accounting records Yes Yes Conclusion: 1. Whether the expenditures are eligible for the Bank financing (Y/N): Y 2. Whether the expenditures are properly supported and accounted for Y N Y 3. Comments and recommendation: None 21 Credit No. Grant Agreement TFOI 7336 Sustainable Persistent Organic Pollutants Project Name (POPs)Management Project (SPMP) Application No. Direct Payment SOE page No. / item No. Direct Payment Amount of transaction USD $ 16,503.91 Disbursement category Consultant Service Reporting period November 11, 2019 De EIA for Assuit Province - 20% Upon delivery of Arabic Draft Inv3 &5 Descniption of documents ]Whether available (Yes, Whether acceptable (Yes, No, NA) No, NA) 1) procurement documents Yes Yes 2) purchase contract / order Yes Yes 3) letter of credit NA NA 4) supplier's invoice and certificate of origin No No 5) shipping documents NA NA 6) contractor's or consultant's invoices or Yes Yes certificates 7) ether evidence of receipt of goods or services Yes Yes 8) force account records Yes Yes 9) recurrent cost records NA NA 10) authorization for payment Yes Yes 11) evidence of payment Yes Yes 12) accounting records Yes Yes Conclusion: Whether the expenditures are eligible for the Bank financing (Y/N): Y . Whether the expenditures are properly supported and accounted for (Y/N): Y 3. Comments and recommendation: None 22 1. By reviewing and auditing the financial records of the Sustainable Persistent Organic Pollutants Management Project from 1 Jan to 31 December 2019, we declare that no internal control weaknesses where found. However, we found a difference in the accumulation expenditures breakdown for financial year 2016 which has no reflection on the total expenditures of this period. From there we will review year 2016 expenditure breakdown to verify and edit. 2. A per our review with World Bank - Client Connect Software; we found a difference of USD $50 since December 2017. The Direct Payment no. P11 for total USD $ 2 5,671.43, and was disbursed from Client Connect on Sep.2017 for USD $ "2,,21.43, which was added in our SOE system with the same number. However, Client connect disbursed the variance on Dec.2017 for USD $50. 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