Please address all correspondence To Chief Executive Officer In reply, please quote the file reference FKVEIL AUASAMOA GOVERNMENT OF SAMOA MINISTRY OF FINANCE 24th December 2019 Ms. Janet Gamarra Governance Specialist Financial Management PPA World Bank Office, Sydney Australia Dear Ms. Gamarra, Re: AUDIT OPINION, MANAGEMENT LETTER AND AUDITED ACCOUNTS - IDA No. V2020 PROGRAMMATIC PREPARATION ADVANCE: YEAR ENDED 30t JUNE 2019 We submit herewith as required under the Financing agreement the final audit report and audited statements for the above project for the period ending 30h June 2019. The following are attached for information and appropriate actions. 1. Audit report/audit opinion 2. Audited Statements 3. Management Letter Should you have any queries, please do not hesitate to contact us. Yours sincerely, (Presit ne Kirifi) For: C IEF EXECUTIVE OFFICER cc: Saoleititi Maeva Betham Vaai, WB Liaison Officer - Samoa Office Tilafono David Hunter, Chief Executive Officer - Ministry of Agriculture Jane Sprouster, Senior Operations Officer, World Bank Private Bag APIA, SAMOA Telephone: (685) 34333/34334 E-Mail: mof@mof.gov.ws Fax: (685) 21312, 24779 Telephone: 27751 P.0 Box 13 Fax: 24167 Emal, Ifo@VUcIt,9o.WSAPIA, SAMOA Email: lnfo@~audit,gov,ws Website: www.audit.gov.ws Please address all correapondencei ' to the Controller and Auditor General AUDIT OFFICE REPORT OF THE AUDIT OFFICE TO THE MINISTRY OF FINANCE OF THE GOVERNMENT OF SAMOA Report on the Audit of the Financial Statement We have audited the accompanying financial report for the Programmatic Preparation Advance, for the year ended 30th June 2019, which comprises the Statement of Receipts and Payments, Statement of Comparison of Budget and Actual amounts and Notes forming part of the Financial Statements and accompanying supporting schedules. The Consultancy Firm of XSAO Consult Ltd assisted in the audit. The Consultant in charge of the audit resulting in this Independent Auditor's Report is Indori Va'a. Audit Opinion In our opinion, the financial report present fairly, in all material respects, the Receipts and Payments of the Programmatic Preparation Advance for the year ended 30th June 2019. Basis for Opinion We conducted our audit in accordance with International Standards on Auditing (ISA). Our responsibilities under those standards are further described in the Auditor's Responsibilities section of our report. We are independent of the Ministry of Finance in accordance with the ethical requirements that are relevant to our audit of financial statements in Samoa, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a reasonable basis for our opinion. Responsibility for the Financial Report The Ministry of Agriculture (MAF), Ministry of Health (MOH), Ministry of Works, Transport and Infrastructure (MWTI) and Ministry of Finance (MoF) as the Implementing Agency, supported by the Executing Agency - MoF, is responsible for the preparation and fair presentation of the Statement of Receipts and Payments in accordance with the requirements of International Financial Reporting Standards practice in Samoa relevant and with the requirements of the Donor - World Bank. The project is recognized on a 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 the Statement of Receipts and Payments 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 funding agreement with the 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. Telephone: 27751 P.O Box 13 Fax: 24167 1: Emalil Info@audlitgov.ws Website: www.audit.gov.ws Pleae addres, all respondencei to tho Controller and Auditor General AUDIT OFFICE We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. We have obtained all the information and explanations that we have 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 Agreement by the World Bank Apia, Samoa Jaslyn T. Mariner-Leota 24 December 2019 ASSISTANT CONTROLLER AND AUDITOR GENERAL PROGRAMMATIC PREPARATION ADVANCE IDA No. V2020 Advance Financial Statements for the Financial Year ended 30 June 2019 1. Management Verification 2. FYI8/19 PPA Financial Statement Ending 30tI1 June 2019 PROGRAMMATIC PREPARATION ADVANCE(PPA) IDA V2020 PPA Accounts For the Financial Year Ended 30 June 2019 I, Leasiosiofa'asisina Oscar Malielegaoi, Chief Executive Officer, of the Ministry of Finance, Apia, Samoa verify that: - the accompanying Accounts for the year ended 30 June 2019, are to the best of my knowledge, a correct and accurate record of transactions for the said period. (Leas1osio a'asi a Oscar Malielegaoi) CHIEF EXECU IVE OFFICER Dated: 24 December 2019 PROGRAMMATIC PREPARATION ADVANCE (PPA) FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2019 PROGRAMMATIC PREPARATION ADVANCE CERTIFICATION BY PROJECT'S MANAGEMENT FOR THE YEAR ENDED 30 JUNE 2019 We certify that the attached financial statements for the Programmatic Preparation Advance (PPA) comprising of the Statement of Receipts and Payments, Statement of Comparison of Budget & Actual Amounts and Notes forming part of the financial statements for the period from 01 July 2018 to 30 June 2019 (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 ........ /... on behalf of the Management of the Programmatic Preparation Advance. I 21( Sign tile Signdture Leasiosiofaasisina Oscar Malielegaoi Peresitene Kirifi CHIEF EXECUTIVE OFFICER ASSISTANT CHIEF EXECUTIVE OFFICER Ministry of Finance Aid Coordination & Debt Management Division Apia, Samoa Ministry of Finance Apia, Samoa Page 2 PROGRAMMATIC PREPARATION ADVANCE STATEMENT OF CASH RECEIPTS AND PAYMENTS FOR THE YEAR ENDED 30 JUNE 2019 30 JUNE 2019 Receipts! Payments by Notes (Payments) Ministy Payments by Controlled by Finance Third Parties the Entity $ $ $ RECEIPTS IDA Grant No. V2020 6 617,204 Government of Samoa (Pre-financed) 9 219,671 Reimbursement of Pre-financed 9 (136,135) Other Receipts Interest Received 8 3,111 Total Receipts 484,180 219,671 PAYMENTS Programme Activities Expenditure SCRTP - Advertisement 7i 26,887 SAFPROM - Consultancy Services 7.ii,7.v 335,926 56,648 - Goods 7.ii 33,295 - Training - - Investment Costs 7.ii 37,651 - Operating Costs (Adjustment) 4,7.ii 39,408 Programme for Results MOH - Consultancy Services 7.iv 86,103 - Goods 7.ii 25,782 Total Payments 422,029 219,671 Cash at Beginning of Year - - Increase/(Decrease) in Cash 62,151 - Exchange Fluctuation Gain/(Loss) (509) - Cash at End of Year 5 61,642 - This statement of receipts and payments must be read in conjunction with the accompanying notes. Page 3 PROGRAMMATIC PREPARATION ADVANCE STATEMENT OF COMPARISON OF BUDGET AND ACTUAL AMOUNTS FOR THE YEAR ENDED 30 JUNE 2019 Actual Original Difference Expressed in SA T$ Final Budget Final Budget Amounts Budget adAta and Actual 5 $ S 5 CASH INFLOWS Grant IDA V2020 617,204 12,144,000 12,144,000 11,526,796 Prefinanced Expenditure by GoS 219,671 (219,671) Total Receipts 836,875 12,144,000 12,144,000 11,307,125 CASH OUTFLOW SCRTP - MWTI 26,887 2,760,230 3,036,000 2,733,343 CTSSU - MOF - 2,024,000 4,554,000 2,024,000 SAFRPROM - MAF 502,928 2,261,329 2,530,000 1,758,401 Programme for Results - MOH 111,885 863,696 2,024,000 751,811 Total Payments 614,814 7,909,255 12,144,000 2,510,212 NET CASH FLOW 222,061 4,234,745 - 8,796,914 Page 4 PROGRAMMATIC PREPARATION ADVANCE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2019 1. GENERAL INFORMATION The Government of Samoa has received an 'Advance' from the International Development Association (World Bank) to facilitate the activites related to the preparation of proposed World Bank financed projects. Proposed projects are as followed; * P165782 Samoa Climate Resilient Transport Project * P165782 Centralized Technical Services & Support Unit * P165873 Samoa Agriculture & Fisheries Productivity & Marketing Project * P164382 Samoa Health Systems Strengthening Program The Programmatic Preparation Advance (PPA) agreement was signed and effective on the 5 June 2018 and the value of the Advance in USD is 4,800,000.00 in total. A Special Purpose Account for the PPA was established and is governed by the Agreement and is known as the Programmatic Preparation Advance Account. The purpoFe of the PPA Account is to disburse funds for Projects activities. The PPA is to be implemented in accordance with the principles, structures and responsibilities set out in the Agreement. 2. SUMMARY OF ACCOUNTING POLICIES 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 for the Ministry of Finance ("MOF"). 2.3 Payments by Third Parties Third party is the World Bank. Thus no payments have been made in direct payments. 2.4 Reporting Currency The financial statements are presented in Samoan Tala (SAT$), in which MoF agrees to present hence all values presented in Samoa Tala have been rounded to the nearest dollar. Transactions in currencies other than USD are translated into USD using the actual exchange rate applied by the Central Bank of Samoa (where the transaction are paid from the Designated Accounts) or at the applicable rate (where the transactions are paid by Third parties) 2.5 CASH Cash in the General Ledger comprise of cash at bank only. Page 5 PROGRAMMATIC PREPARATION ADVANCE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2019 2.6 Receipts Deposits are received from the World Bank. The amount is based on a request from Government of Samoa through the Ministry of Finance (MOF) for approval and transfer from the World Bank. MOF have access to Client Connection, the website that is used to manage funds and to check on the financial status. 2.7 Payments Payments relate to all expenditure payments made to suppliers for goods and services relating to the PPA. Projects payments are paid from the special account established with CBS. The small purchases of good or services are pre-financed from the GoS account and reimburse from the CBS account. The payments are made in line with the descriptive activities in the Annex - Article II of the Agreement. 3. FINANCIAL PERIOD This financial statements is for the year 30 June 2019 (12 months). 4. RECLASSIFICATION OF PAYMENTS RELATED TO PPA FINANCED UNDER THE SACEP OUTPUT IN FY The following amount was finance and recorded in the SACEP Payments in FYI8/19 have now been adjusted through a Journal Entry at year end and recognised under Payment of the Programmatic Preparation Advance. This amount has been reimbursed and paid out of the Project Designated Account this Financial Year and are categorized under the SAFPROM project. 30 JUNE 2019 $ Pre-finance expenditures (related PPA-SAFPROM expenditures paid under SACEP) 39,408 Total 39,408 5. CASH AT BANK 30 JUNE 2019 Programmatic Preparation Advance $ IDA Designated Account No. 06-123 61,642 Total 61,642 6. GRANTS Page 6 PROGRAMMATIC PREPARATION ADVANCE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2019 ADDITIONAL DISCLOSURES CBS DA Expenditures 7.iv PforR HEALTH - Consultancy Services 86,103 7.v SAFROM - 1A_Consultancy Services 335,926 TOTAL CBS DA Expenditures 422,029 8. INTEREST RECEIVED Total interest received from both the IDA and PRIF Designated Accounts are transferred accordingly to the Government Account (USD Account No. 06-033) held at the Central Bank of Samoa. 30 JUNE 2019 Interest Received from: $ IDA Designated Account No. 06-123 3,111 3,111 9. SUBSEQUENT EVENT Total pre-financing expenditures for the three (3) projects in FY1819 is SAT$219,671.35. A total reimbursement of SAT$136,134.94 was paid from the PPA Designated Account 06-123 on two separate transactions dated 4th March 2019 and 13th June 2019 as recorded in the CBS Bank Statements for the SAFPROM project. The remaining unreimbursed balance of SAT$83,536.41 is reimbursed in the current Financial Year 19/20. Page 7