Please address all correspondence File ref: To Chiei Executive Officer In reply, please quote the file reference FA-AVAEl LEATU SAMO GOVERNMENT OF SAMOA MINISTRY OF FINANCE 17 October 2019 Janet Gamarra Governance Specialist Financial Management World Bank Office, Sydney Level 19, 14 Martin Place, Sydney NSW 2000, AUSTRALIA Fax No: 61-2-9235-6594 Ph No: 0292356529 (57406529) Dear Ms. Gamarra, Re: AUDIT OPINION, MANAGEMENT LETTER AND AUDITED ACCOUNTS - IDA H9140 & PRIF TF 017019, SAMOA AVIATION INVESTMENT PROJECT: YEAR ENDED 30th June 2019. Attached herewith please find attached the Audit Opinion, Audit Report and one set of Audited Statements of the above project for the period ending 30t" June 2019. Submitted as per requirement of the Bank under the Financing Agreement. We would appreciate your confirmation upon receipt of the SAIP Annual Financial Statement FY1819 to the following emails ulatifa.tiitii@dmof.gov.ws and peresitene.kirifi@3mof.gov.ws. Yours Sincerely, (Muliagatele Losalini Moli - Ah Ki) ACTING CHIEF EXECUTIVE OFFICER Cc: General Manager - Samoa Airport Authority Controller & Auditor General - Audit Office Private Bag APIA, SAMOA Telephone: (685) 34333/34334 E-Mail mof@mof.oov.ws Fax: (685) 21312, 24779 Telephone: 27751 P.0 Box 13 Fax: 24167 APIA, SAMOA F,nall: Infof-)audit.9ov.Ws Web5ite: wvvv.audit.gov.vvs AUDIT OFFICE REPORT OF THE AUDIT OFFICE TO THE GOVERNMENT OF SAMOA (MINISTRY OF FINANCE) We have audited the accompanying special purpose financial report, of the Samoa Aviation Investment Project which comprise of the Statement of Receipts and Payments, Statement of Comparison of Budget and Actual amounts and the Notes to the financial statements for the year ended 30 June 2019. The Consultancy Firm of XSAO Consult Ltd assisted in the audit. The Consultant on the audit resulting in this Independent Auditor's Report is Grace Mulitalo-Mitchell. Audit Opinion In our opinion, the accompanying special purpose financial report present fairly, in all material respects, the Statement of Receipts and Payments, the Statement of Comparison of Budget and Actual Amounts and Notes to the financial statements of the Samoa Aviation Investment Project (SAIP) for the year ended 30 June 2019, in accordance with the Project Funding Agreement and in-line with key deliverables required for the project. 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 accompanying set of financial report is the responsibility of the management of the Implementing Agency - the Samoa Airport Authority (SAA) supported by the Executing Agency - the Ministry of Finance (MOF). The policy of the National Executing Agency - Ministry of Finance, is to prepare the financial report in accordance with the requirements of the Donor and on the Cash disbursements basis. On this basis, donor funds are recognised when received and expenditure is recognised 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 special purpose 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 Financing Agreement between the Independent State of Samoa and International Development Association. 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. 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 Financing Agreement. Apia, Samoa Jas yn T Mariner-Leota 16 October 2019 ASSISTANT CONTROLLER AND AUDITOR GENERAL Telephone: 27751 PO Box 13 Fax: 24167 t 13 APIA. SAMOA Email: info -audit.9ov.ws Website: www.aud1t,qov.wsk AuDIT OFFICE 17 October 2019 Chief Executive Officer Ministry of Finance Apia, Samoa Attention: Ms. Peresitene Kirifi ACEO Aid Coordination & Debt Management Afioga e, Management Letter for Samoa Aviation Investment Project the period 1 July 2018 to 30 June 2019 The purpose of this correspondence is to bring to your attention matters arising from the audit of the Samoa Aviation Investment Project for the period 1 July 2018 to 30 June 2019. The audit was not a comprehensive review of all systems and processes and was not designed to uncover all weaknesses, breaches and irregularities in those systems and processes. Inherent limitations in any management process and system of internal control may mean that errors or irregularities might occur and not be detected. During our audit we noted certain matters involving the internal control structure and its operation that we believe warrant management's attention. Our discussion of these matters forms the remainder of these reports as shown in the appendix section. The assistance provided by the management and staff of the project during the course of the audits is acknowledged. Please contact me on 27751 if you would like to discuss any matters included in the letter. Ma lo'u fa'aaloalo lava, aslyn T Mariner - Leota ASSISTANT CONTROLLER AND AUDITOR GENERAL cc: Honorable Minister - Ministry of Finance Samoa Aviation Investment Project (SAIP) Management letter report For the period 1st July 2018 - 30th June 2019 APPENDIX Samoa Aviation Investment Project Management letter report For year ended 30 June 2019 Issue 1: Payment vouchers not pre-audited There were payments that were not pre-audited before being processed. Although these vouchers were paid directly under the CBS account of the project, they should have undergone the same process as all other payments, and through audit check for its function to ensure that all supporting documents are intact, and proposed payments are in line with project. Some of these vouchers include the following. Date Supplier Amount Bank Account (CBS) 12/7/2018 Ott Construction USD652.98 06/078 24/7/2018 Faletao Polutea USD1975 06/078 31/7/2018 AriBiz Aviation Ltd USD81,712.25 60/078 1/8/2018 Airways corporation NZ Ltd USD31,671.0 06/078 1/8/2018 Samoa Airport Authority SAT16,727.77 06/078 Recommendation All payments regardless of whether paid directly from othersources, such as CBS special account or directly from World Bank, should be prior checked and pre-audited by the Audit office. Prior processing of payment, the Audit office should provide its independent check function on all payments to reduce the risks of ineligible payments and appropriate supporting documents are intact. Management Comment Issue 2: Progress of project and disbursement of funds A financing summary as at 27th September 2019 from the World Bank Client connection shows substantial undisbursed funds. It is noted a delay in the utilizing of these funds given that the project is nearing its completion timeframe, March 2020. An additional grant, IDAD4570, of 1.6million SDR approved thus extended the project to its new due date. However also under other grants/credit, IDA 58050 and H9140 have roughly about 5.2million SDR undisbursed. It is noted also in the progress reports the delay in one of the construction works that would likely go beyond the project completion date and costs would have to be then compensated by SAA. Page 2 of 5 Samoa Aviation Investment Project Management letter report For year ended 30 June 2019 Similarly, this view is supported by the comparison between the actual and final budget which shows an under spend of funds to the committed plan of works to be executed. Recommendation As the project is nearing completion, we recommend the utilizing of project funds to meet all its intended objectives and against planned activities. This would require a close monitoring of the works to ensure they are performed in a timely manner whilst avoiding issues that may hinder the meeting of planned works. Management Comment Issue 3: Arrangement for fixed assets There is no documented arrangement regarding the fixed assets upon completion of the project. This concerns the transfer of assets under the books of SAA, and their valuation as we've noted, the assets on the asset schedule have been carried at their book values, since initiation of project. A proper assessment is required in assessing the values of assets and the rates depreciated for, before the transfer. Recommendation As the project is close to completion, audit recommends that an arrangement should be in place for the transitioning of these assets to the SAA books. This would include the process of valuation, the years of purchase and depreciation rate appropriate for the condition and the use over the asset's useful lives. Management Comment Issue 4 - Direct payments not on Finance One The direct payments, amounting to 13,035,777USD for the financial year is not captured on Financel. These payments are also not pre-audited by the Audit Office but are sent to the World Page 3 of 5 Samoa Aviation Investment Project Management letter report For year ended 30 June 2019 Bank for direct payment to suppliers. Following are the direct payments for the audited financial period. Date (closed) Reference Supplier USD equivalent 5/4/2019 H9140 Downer NZ Ltd 6,559,26.30 6/12/2018 WA46 Downer NZ Ltd 4,211,083.43 14/9/2018 WA44 Indra Australia Ltd 204,775.75 12/9/2018 WA43 Indra Australia Ltd 133,16.10 16/7/2018 WA39 Downer NZ Ltd 714,606.30 16/7/2019 WA40 Downer NZ Ltd 257,612.31 11/6/2019 5805-WS Downer NZ Ltd 954,857.52 13,035,777,71 Recommendation We recommend that direct payments are reflected on Financel to show the funds appropriated from this project. It is vital that all costs and receipts relating to the funding of the Aviation Investment project by the donor are completely reflected on the whole of Government Public Accounts via Financel. Management Comment Issue 5: Termination of LYON contract It is noted during the audited period the termination of the LYON Associates contract with the project while half way through its timeframe and 50% of contract price had already been disbursed. An assessment of review noted issues arising during the course of the engagement, which regarded the lack of immediate action on poor performance and the potential insolvency of the company. The thorough and close monitoring of the contractors is important in avoiding the project from exposing to risks of lapse in time and resources and importantly the meeting of objectives. Recommendation We recommend that reviews of contractors are done on a timely basis. It is understood that these contractors play an important role in the deliverance of the project and are thus material in cost. It is recommended that immediate action is taken upon facing these issues to ensure the smooth running of scheduled works. Page 4 of 5 Samoa Aviation Investment Project Management letter report For year ended 30 June 2019 Management Comment Issue 6: Delay of reimbursements We noted that project expenses paid for by the Airport Authority for months March to June 2019 have not been submitted to the MOF for reimbursement. Also noted the reimbursements of bank fees associated with LOC were paid by MOF but are yet to be reimbursed from the CBS special account. The new financial year will carry these expenses when supposed to be reimbursed earlier and would then be reflected as expenditures of the audited period. As a result, the expenditures of the period ending 2020 reflecting these payments will lack an effective comparison of spending over the period. Recommendation We recommend that MOF and SAA work closely in speeding up reimbursements and in a timely manner. This is to ensure that another financial year carries at least a minimum of unreimbursed expenditures, especially commitments in June that would expect to fall out of the audited period. This also provides a more reasonable comparison between expenditures arising in each year of the project life span. Management Comment Issue 7: Safety and Security Levy There is a 11.4m in the CBS special account for Safety and Security Levy, deposited on the 28 June 2019, but does not relate to the Safety and Security Levy as confirmed by principal overseeing this account. It is believed that this payment is from the joint venture between Government of Samoa and the Virgin Australia. It has not been transferred out of the account to its intended account yet. Recommendation We recommend the transfer of the funds to its intended account immediately to be utilized for its intended purpose. Management Comment Page 5 of 5 SAMOA AVIATION INVESTMENT PROJECT (SAIP) FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2019 SAMOA AVIATION INVESTMENT PROJECT FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2019 CONTENTS Page(s) 1. Report of the Auditor 1 2. Certification by Management 2 3. Statement of Receipts and Payments 3 4. Statement of Comparison of Budget and Actual Amounts 4 5. Notes to the Financial Statements 5-8 SAMOA AVIATION INVESTMENT PROJECT CERTIFICATION BY PROJECT'S MANAGEMENT FOR THE YEAR ENDED 30 JUNE 2019 We certify that the attached financial statements for the Samoa Aviation Investment Project (SAIP) 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 k IC on behalf of the Management of the Samoa Aviation Investment Project. Signature Signature Muliagatele Losalini Moli - Ah Ki Silimanai Ueta Solonona ACTING CHIEF EXECUTIVE OFFICER GENERAL MANAGER Ministry of Finance Samoa Airport Authority Apia, Samoa Apia, Samoa Page 2 ·’슥― SAMOA AVIATION INVESTMENT PROJECT N(STATEMENT OF COMPARISON OF BUDGET AND ACTUAL AMOUNTS FOR THE YEAR ENDED 30 JUNE 2019 Actual Difference Final Expressed in United States dollars Amounts Final Budget Original Budget Budget and Actual CASH INFLOWS IDA Grant No. H9140 1,316,316 1,468,574 2,876,540 152,258 PRIF Grant No. TF17019 - - - IDA Credit No. 5805-WS - Samoa Airport Authority 41,007 45,000 45,000 3,993 Ministry of Finance 2,494,450 2,678,405 1,483,092 183,955 Third Parties (World Bank) 13,035,778 13,521,752 14,852,000 485,974 Transfers to SAA & MOF (16,791) - - 16,791 Total Receipts 16,870,760 17,713,731 19,256,632 842,971 CASH OUTFLOW Component A: Aviation Infrastructure Investments 16,146,157 16,350,241 17,913,207 204,084 Component B: Aviation Sector Reform and Training 97,983 147,440 353,769 49,456 Component C: Strengthening Airport Operations & Management Capacity 187,585 209,309 291,022 21,724 Component D: Project Implementation Support 308,691 480,436 391,775 171,745 Total Payments 16,740,417 17,187,426 18,949,773 447,009 NET CASH FLOW 130,343 526,305 306,859 395,961 Page 4 SAMOA AVIATION INVESTMENT PROJECT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2019 1. GENERAL INFORMATION The Government of Samoa through the Implementing Agency - Samoa Airport Authority (SAA), has received a grant for assistance from the International Development Association under the Pacific Aviation Investment Project (PAIP). The PAIP Program is a regional aviation project with the development objective to provide safe and secure air transport operations and environmentally sustainable and efficient airports. The Samoa Aviation Investment Project Financing agreement was officially signed on the 8th May 2014 with preparatory expenditures having been incurred since October of 2013. The value of the Grant in SDR is 16,300,000.00 which equated to USD25M at the time of signing. In addition to the IDA grant is a USD 300,000 grant from the Pacific Region Infrastructure Facility (PRIF) signed and dated on the same date. On 19 Aug 2016 an Additional Financing (IDA Credit No. 5805-WS) agreement was signed with the IDA for the amount SDR12,100,000 which equated to USD16,620,000 at the time of signing. The Additional Credit Financing was secured to finance the costs related to changes in the co-financing arrangments with the European Investment Bank (EIB) and an expanded scope of work required because of a new terminal investment financed by Export -Import Bank of China (China EXIM Bank). On 16 June 2019 an Additional Financing (IDA Grant D457-WS)-WS) agreement was signed with IDA for the amount SDR 1,600,000 which equated to USD2,200,000 at the time of signing. The Additional Grant Financing was secured costs related to all the initially scheduled and on-going activities (including project management fees, planned training, and all scheduled activities to help successfully implement the project and achieve its Project Development Objective. In addition to the Additional Finanicng the Project extended its closing date to 31 March 2020. SAIP is implemented under the overall guidance, coordination and monitoring of the National Steering Committee, and the Program Steering Committee as part of the regional program of aviation investments (which currently includes Tonga, Tuvalu, Kiribati, Samoa and Vanuatu). SAIP is supported by the Technical and Fiduciary Services Unit (TFSU); based inTonga, and also tasked to support the regional program, with cost sharing arrangements agreed as per the Program Operations Manual (POM). A Special Purpose Account for the SAIP was established and is governed by the Financing Agreement and is known as the Samoa Aviation Investment Project Account. The purpose of the SAIP Account is to disburse funds for Project activities. The SAIP is to be implemented in accordance with the principles, structures and responsibilities set out in the Financing Agreement. 2. SUMMARY OF ACCOUNTING POLICIES 2.1 Basis of Preparation The Financial Statements 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 Samoa Aviation Invesetment Project (SAIP) through Samoa Airport Authority ("SAA").The financial statements encompass the reporting entity as specified in the relevant legislation, Public Finance Management Act 2001. 2.3 Payments by Third Parties Third party is the World Bank. There has been nine direct payments for this financial year. 1 IDA H9140 6 2 IDA58050 3 9 2.4 Reporting Currency The financial statements are presented in US Dollars (US$), in which SAA agrees to present hence all values presented in US Dollars 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 Page 5 Cash in the Statement of Receipts and Payments comprise of cash at bank only. Page 5 SAMOA AVIATION INVESTMENT PROJECT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2019 2.6 Receipts Grants 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. Both MOF & SAIP have access to Client Connection, the website that is used to manage grant funds and to check on the financial status. 2.7 Payments Payments relate to all expenditure payments made to suppliers for Goods,Works and Services relating to the SAIP. Payments are approved by the General Manager for Samoa Airport Authority and are subsequently paid by the Ministry of Finance in accordance with the Program Operational Manual (POM). Payments are also paid for by the Samoa Airport Authority and reimbursed from the CBS account monitored by MOF.Payments are also paid directly to the supplier by the World Bank. Payments are made in line with the Project Agreements between the Government of Samoa,the Technical & Fiduciary Services Unit (TFSU) and the World Bank. Any variation to the Project Agreement would be submitted by SAIP to MOF for consideration. 2.8 PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment items are stated at cost. 3. FINANCIAL PERIOD This financial statements is for the year ended 30 June 2019 (12 months). 4. RECLASSIFICATION OF PAYMENTS PREVIOUSLY RECORDED IN THE FY 16/17 FROM SAA AND MOF The following amounts which were previously recorded under Payments by SAA in FY17/18 have now been reclassified with adjustments (due to foreign exchange and bank fees ) and recognised under Payment by the Controlling Entity. These amounts have all been reimbursed and paid out of the Project Designated Account this Finanical Year . ReetannOicataon a. Reeogniior af Adj.V-t nfuonodoar in FY' Expendture FY18/19 30 JUNE 30 JUNE 2019 2018 $ $ Component A: Aviation Infrastructure Investments Component D: Project Implementation Support 18,232 18,226 18,232 1,2 5. CASH AT BANK 30 JUNE 30 JUNE 2019 2018 Samoa Aviation Investment Project $ $ IDA Designated Account No. 06-078 272,454 137,789 PRIF Designated Account No. 06-097 439 4,761 272,893 142.550 30 JUNE 30 JUNE 6. GRANTS & CREDIT 2019 2018 $ $ Grants from World Bank/IDA, Grant No. H914-WS 1,316,316 1,901,780 Grants from World Bank/PRIF, Grant No. TF017019 - 2,148 Grants from World Bank/IDA Credit No. D457-WS Credit from World Bank/IDA Credit No. 5805-WS - Total 1,316,316 ____1903,928 7. PAYMENTS MADE BY MINISTRY OF FINANCE (MOF) 30 JUNE 30 JUNE Counterpart Expenditure for FY18/19 2019 2018 $ $ ComponentA: Aviation Inffrastructure Investments 2,492,397 1,170,792 Component D: Project Implementation Support 2,053 31,845 Total 2,494,450 2 Page 6 SAMOA AVIATION INVESTMENT PROJECT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2019 ADDITIONAL DISCLOSURES 8. PAYMENTS MADE BY SAMOA AIRPORT AUTHORITY (SAA) Payments made by SAA on behalf of SAIP which have been assessd eligible for Reimbursement 30 JUNE 30 JUNE 30 JUNE 30 JUNE 2019 2019 2018 2018 USD$ equiv SAT$ USD$ equiv SAT$ Component C: Strengthening Airport $ 9,996.49 26,299.62 ComponentD: Project Implementation Support $ 31,010.88 81,586.12 $ 18,226.00 $ 47,689.76 $ 41,007.37 $ 107,885.74 $ 18,226.00 $ 47,689.76 9. PAYMENTS MADE BY THIRD PARTIES Three Direct Payments were processed through the World Bank to the following suppliers 30 JUNE 30 JUNE 2019 2018 Payment to: Supplier Funding Ref $ $ 1) Downer NZ Ltd IDA Grant No. H9140 11,742,728 1,913,783 2) Indra Australia Ltd IDA Grant No. H9140 338,192 839,307 12,080,920 2,753,089 3) Downer NZ Ltd IDA Credit No, 5805-WS 954,858 5,461,000 954,858 5,461,000 Total Payments by Third Parties 13,035,778 8,214,089 10. LEITERS OF CREDIT Three Letters of Credit(LOCs) were executed by the Ministry of Finance with ANZ Samoa Ltd Bank in this Financial Year all expected to be processed in July and October 2019. The Letters of Credit were taken out under one contract with three specific Lots and delivery times. Special Commitments were provided by the World Bank for Lot 2 & 3 noted in the details below. Supplier: Indra Australia Pty Ltd Lot Amount AUD$ LOC Ref: Expiry Date Details Special Commitment Payable 30 days after Bank receives the necessary shipping Lot 1 - Airfield Lighting and Cabling $ 1,499,478.48 LM736310979 31/10/2019 documents Not Applicable Payable 30 days after Bank receives the necessary shipping Lt 2 - Power Systems $ 821,059.92 LM737140979 31/07/2019 documents IDA58050 Payable 30 days after Bank Lot 3 - Air Traffic Control receives the necessary shipping Equipment $ 1,479,46.08 LM7377097931/07/2019 documents IDA58050 11. FACILITY AVAILABLE Grants in historical figures including available balances for the Year. Signed Amount Remaining Balance (SDR) Disbursed (SDR) (SDR) IDA Grant H9140 $16,300,000 $15,009,411 $1,290,589 IDA Additional Finanicng (1) IDA58050 $12,100,000 $4,458,097 $7,641,903 IDA Grant Additional Financing (2) IDA0457 $1,600,000 $0 $1,600,000 IDA Q8730 IDA Q8730 USD 350,000 USD 350,000 USD 0 PRIF Grant TFI 7019 USD 300,000 USD 300,000 USD 0 12. PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment items are stated at cost (USD $). Opening Additions* Disposals Closing Motor Vehicle 34,968 - 34,968 Computer Equipments 19,062 3,457 3,511 19,008 Furniture & Fittings 8,894 - 8,894 Office Equipments 5,629 - 5,629 Software 2,074 - 2,074 VSAT Satellite Equipment 135,506 - 135,506 Firetruck Vehicles 1,049,133 - 1,049,133 Equippage 570 - 570 Total 1,255,837 3,457 3,511 1,255,783 Page 7 SAMOA AVIATION INVESTMENT PROJECT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2019 ADDITIONAL DISCLOSURES 13. SAFETY LEVY The collections of the Safety and Security Levy is carried out by MOF . As at FY1819 the total balance held was SAT$3,697,831.33 14. INTEREST RECEIVED Total interest received from both the IDA and PRIF Designated Accounts are transferred accordingly to the Government Account (Account No. 06-002) held at the Central Bank of Samoa. 30 JUNE 30 JUNE 2019 2018 Interest Received from: $ $ IDA Designated Account No. 06-078 3,909.02 1,605.60 PRIF Designated Account No. 06-097 29.67 56.35 3,938.69 1,661.95 15. SUBSEQUENT EVENT The official closure date for TF 17019(PRIF) was 30 June 2019. At this date USD$438.50 remained in the Designated Account. This money will be reimbursed back to the World Bank before 31 Oct 2019. 16. EXPLANATION OF THE DIFFERENCES BETWEEN ACTUAL AND BUDGET The Final Budget reflects the forecasted expenditures from the three main sources of funding to the project: World Bank (Grant H9140; D457 & Credit 58050WS) PRIF (TF17019) and Government of Samoa (Counterpart Funds). The disburesment forecasted for FY 18/19 shows the variances amongst the components based on the progress of implementation which improved as the largest contract under the project is on track to end in November 2019. Page 8