MINISTRY OF HEALTH AND POPULATION SOUTHEREN AFRICA TUBERCULOSIS AND HEALTH SYSTEMS SUPPORT PROJECT (SATBHSSP) IDA LOAN No. 5864-MW; GRANT NO. DI 170-MW Financial Statements For the Year Ended 3 1' December, 2018 National Audit Office P 0 Box 30045 Lilongwe 3 CONTENTS PAGE Controlling officer's report 3 Statement of management's responsibilities 7 Auditor General's Report 8 Statement of receipts and payments by category of expenditure 1] Statement of receipts and payments by component 12 Statement of Designated account reconciliation 14 Notes to the financial statements 16 2 SOUTEI IRN AFRICA TJBERCULOSIS AND IEALTI I SYSTEMS SUPPORT PROJECT- IDA LOAN NO. 5864-MW, GRANT NO. DI 170-MW FINANCIAL STATEMENTS CONTROLLING OFFICER'S REPORT FOR THE YEAR ENDED 31 DECEMBER 2018 BACKGROUND AND PROJECT IDENTIFICATION The Southern Africa Tuberculosis and Health Systems Support Project (SATBISSP) is a five- year project being financed by the International Development Association (IDA). This project is also being implemented in three other countries in the Southern Africa Development Community (SADC) region namely Lesotho, Mozambique and Zambia. The total project costs are USD 17 million comprising, a loan of USD 7.5 million under highly-concessional terms and a grant of USD 9.5 million. Part of the loan financed a Project Preparatory Advance (PPA) amounting to USD465,615. The project is being implemented in the nine (9) districts of Nsanje, Blantyre, Balaka, Lilongwe, Kasungu, Mzimba South, Mzimba North, Rumphi and Karonga in the country. The Secretariat facilitating the project is housed in the National Tuberculosis Programme (NTP) in Lilongwe. A special account of the project is maintained at the Reserve Bank of Malawi account no 0013001600093 while the operating account is at the First Merchant Bank, Capital city Branch account no '0004707000172. The Ministry of Health and Population is the Lead Implementing Agency followed by the Ministry of Labour and Department of Mines. The project has three components and five categories to which funds were allocated. Component 1, Innovative Prevention, Detection and Treatment of TB, was allocated $4.4million; Component 2, Regional Capacity for Disease Surveillance, Diagnostics and Management of TB and Occupational Lung Diseases, a total of $5.1 million and Component 3, Regional Learning and Innovation and Project Management has $7.3million. Component three include funds for Eastern, Central and Southern Africa -H-ealth Community (ECSA-HC), $1.2million and New Partnership for Africa Development (NEPAD), $.6million who acts as regional project coordinators. OVERALL PROJECT GOAL The GoM prioritised the mining sector and included it in the second Malawi Growth and Development Strategy (MDGS II) 2011-2016 which spells out the national development plan for Malawi. According to the MGDS II, mining is expected to contribute to economic diversification and development and over the period of its implementation, it was expected to contribute 20% to the Gross Domestic Product. While the successor MGDS is still being developed, it should be stressed that Malawi will still prioritise investments in the mining sector because of its potential to significantly contribute to Malawi's economic development. If this is to be realised then the GoM needs to create an enabling environment for mining including the improvement of the governance of the mining sector. 5 3 \1RI A f11 N( I IN \\' fi t si II 'll ONTROLLIN; OFFNI 'S REVORT (CONTIN1D)) FOR 11: YIA EN, )El) 31 P1)1l\111Ri (018 SPECIFIC OBJECTIVES The objective of the projcct is to improve covCiage and (T4 c Control Irt lung disease serx ices in targeted geographical areas ol the Paric1ipating ( on . and capacity to manage the burden oft 13 and occpaLional 1 ung dieases. The development objective of the project is to inmproNc the ecieCV, t ra11paren d Cn sustainability ol the management of the miining sector. lHis dcel k>pment cbeti xe i cns n with Malawi's national deveelopment agenda as wcll as the themes of P romot in SustatnaHe diversified and Inclusive Growth and improving Governance as contained in the 0 1 Country Assistance Stratex for the WVorld Bank. The folimving results indicators xil he used to assess the success of implementing the project: (i) Effciency: a reduction in the days needed on average to issue mineral rights: (ii) Transparecy: annual public reporting ot mineral sector tax revenues: and (iii) Sustainabililit: an increase in the percentage of mining operations subjected environmental certification. PROJECT PERFORMANCE The project became effective on 1st December 2016 after meeting the Project Apprta!sal Document (PAD) requirements. In 2018. the project utilized $6.1imillion of the total annual work plan and budget of $.1million, representing 76%. The disbursement rate as at 3 1" December 2018 w\as 59% ($9.9million disbursed Of total ($15.1m). The This was a second year of implementation and it registered some good progress in Project implementation as the districts and all implementing players worked hard towvards achievIng targets set in the annual work plan and budget. In terms of overall performance, progress towards achieving the annual targets stood at 64% 0. It must be understood that this achievement is against a backdrop of competing priorities facing implementation teams in the light of other equally important national assignments that had strict time lines. 4 0 \ 11510 11 \ l \\l) I H \1 1 t ys al N lår l rv CONT R1OLL l ING OFFR :R, s R VPORT ((ONT M vlj) ICR TH: YOAR MNDMV 3 DIMMHIR :008 SeNcial intes enins vere inpleniented to achicke i k , achieCNved duiring the year u n de re\ iw ar e as folows 1 Periodic supervisioll \ isits to all 113 regi ation sie. tra iig and mn r plårid to health care workers involved in T3 acivities and the peri r eme improve treatntcll success Tes, i A total of 3 groups ef miers out eo the planned allann ar f-t s- 36 v e oriented on healfhl educatein. TIhe w ider cemi t of miners ad em i ha aee imparted with requisite skills flor helping others on 11T related irmion ii other Inng conditions and also with skils that prnme heabh seekin be s 3. To increase case detections. 70 sputun collection pontsi that are comprised f vntee were estabhshed and oriented en how lo mbinliz people for 11 sreening, incl in g collecting sputum samples and nanaging the sanples ep lo getting ther l a microcp site. Furiher to that. the points wvere pive enablers which include bicycles, back pcks. sputum collection bexes. i shirts and gunbots. 4. To improve clinieal quality of service. 130 out of 180 healtbh wrkers were traned en systemaric tuberculMsis screening. service skils upgrading for managemen on I I an- TB-HIv. 203 out of 180 Health Surveillance Assistants were trained in tuberculesi detection. diagnosis and treatment. In addition to that. traditional healers w,ere trained in TB & 1IV case rnanagerent 5. The Project supported clinical reviews of DR TB patients in the course of the ear 1his was aimed at ensuring quafity elinical nanagement of patients on new reimens (S1 TR and New Drugs Bedaquiline and Delamanid) and also to build capacitY of district M1DR TB teams in the clinical manaenent of MDR TB patients. 6. To ensure adherence on mine salety, 43 mines were inspeeed. Tlie visits enable gox,ernment author,ities assess the level of compliance of ines to occupational health and safety obligations under the 1xplosives Act the Jine (Safetj) Reglations and the Occupational Safety. Hleath and Wk`elfare Act and regulations. 20 iems of Inspection equipment were procured to ensure inspection teams are able to execute the inspections properly. Further to that, Infrnation echnology equipment including desktops, laptops and printers for rolling out an occupational health service information system uere pocured, itv and disease surveillance, 42 laboratory oflicers were 7To strenigthen diagnostic capacit anype)11Lla n trained in disease surveillance. outbreak and other health emergency preparedness an response. 5 l (t\N N( "86 1\ M \, (, \ v I1lI l \ \ M m I I \ I N CONTlROlL UFFUMER'S RMPURTØV('l TIMED) FoR TME Y!AR E1N1MED i1 DE1jM1 R IIII 8. Tlie proict contributed in c~ntaining the choler si :n uting l prøcurinemt o supplies that incl uded personal pitectie wear: d i dnd wl as suplprting disticjt survCilance and patient managu were isAribited io Karona. Dd/a, Iikom a. L1onge, and Satlimai dtri 9, 41 laboi atwy and quality assurance ffers atended iLAMTA orkshp h at orienting themi (n pIacical laboratory management skills ih the aim o impr quaiy management systyeminm AT he iaboratWries 10. Social safeguard tools wcre developed iniing at proitn health and e o wrke and communities. The tool incl uded the Workers td k- Conduct and th ien Redress lechanism. Im plemenation of these toois had ncq com i ya a civil v-orks had not yet started DR. DAN NA.MARIKA SECRETARY FOR HEALTH 6 l NANsAn ~ i py iRAN %( 1)1f \11 STATM IFN OFI NIANAGISNI RESM NSIlIJtTIS 1OR T IV YIAR 1ND)1 1 D 1 \1TI R :01 S Thie Project Appraisal Document of the International 1)esil enllr I -b 1: I agreement of 5' August. 200 and the PuNc inance Ma1iageen t Act. ,1 r management to prepare financial slttemnts for each lnaniial peried hich ie tu nd view of the state ot atfairs of the projeca as the end Mf the in^anil yea mnd of ho results for that Ieriod. The Project Appraisal Document and the ct al so reqiåre manaemenet t ensure the Pr keeps proper accountling records whie diselese with reisonable accunr it n tinsme ti financial position of the Project and enable them to ensure hin the lfeica hteent s emp with applieale statutes In preparing the financial statements, nanagemient accepts responsbihility for tlie elie n: • Maintenance of proper accounting records; • Selection of suitahe acconniäg policies and consistent application thereof: a Making judgments and estimates that are reasonable and consistently applied: * Compliance wit applicable accounting standards Wen preparing Ananeil staemens: and b Preparation of financial statements on a going concern basis unless it is inapproprite le presumte that the Project will continue in business in the foreseeable future. Management also accepts responsibility for taking reasonable steps to safeguard the assets ot fhe Project and to maintain adequate systems of internal control to prevent and deteet traud and ether irregularities. The financial statements have been approved on...... ... 11.by the linistry of 1 lealth and Population are signed on its behalf by: SECRETARY OF HEALTH AND POPULATION PROJECT COORDINATOR 7 'X I\*ý 1 1\5\,, f 1~ ~ ~ 13' K~- V ~ Natonal Audil office AlUDI TOR GE NER A1 AUDITOR GENER \VS REPORT TO THE SECRETARY FOR HFAÄLTHI ON 1HE FINAN(IAL lTAEME\INTS OF SOUTHEREN AFRICA TUBERCU LOSIS AND 11 V.E III Y 1)YTE , S PPORT PRT0IVG (SATBIISSP) IDA LOAN No. 5864-MWV GRANT NO. 1)1 170-IN FOR THE YEAR EN)E) 31"1 DECKNI3FR, 2 018 Opinion I have audited the financial statements compriing. Statement of Reccepv and P t1 and Designated Account ActivitN Statement of the Southern Africa Itercuosi's an,' t yms Support Project (SATBIISSP) IDA LOAN No. 5864-iMW GRANT NO. D1 1-70- \1' r the yr ended 31` December. 2018 and related notes as set out on pages 11 to 19. In my opinion. the financial statements present fairlv, in all material respects the Giran:mi n of the Southern Africa Tuberculosis and Iealth Systems Support Projeet for the year ende . December. 2018 in accordance with the International Public Sector Accounting Standars P \'> Basis for Opinion I conducted my audit in accordance withi International Standards of Supreme Audit Instlitins (ISSAIs). M-v responsibilities under those standards are further deescribed in the Aur Responsibilities.for- the Audit of/ the Fnilwia/ Stanwn. section of ni reporu I am independent ot the Southern Africa Tuberculosis and Health Sy stems Support Project and the Ministry of Hlealth in accordance wvith the International Standards of Supreme Audit Institutions - Code ofethics (ISSÄl 30) as promulgated by the International Organisation of Supreme Audit Institutions (INTOSAI x and I have fulfilled my other ethical responsibilities in accordance wvith these requirements. I beleN e that the audit evidence I hav e obtained is suflicient and appropriate to prov ide a basis for nv opinion. Key Audit Matters Key audit matters are those matters that. in my professional judgment. \ ere of most significanc in my audit of the financial statements of the current period, 71hese matters were addressed in the context of my audit of the financial statenents as a whole, and in förming n opinion fhereon. and l do not provide a separate opinion on these matters. \t I 11 11 K\ \ I II' IC ll ItCl111111 C id e e lL i 11, 11lTU 1 'II CII IIIIi 11 Re spponsibiIit ics of niiitge for t t c FinancI a I S tat e Mobecte are to Notbin reasnabl un boutwhether te A J a e II a 1 ar fhe from til Ii sttemetLST wh trd to fraud or ror a t isu ar 1111bl]ic Sector Acco (lit]n 11": iJ I' \S 1 ''' ilkpwn:a cot ntion a d od such intcmal conce wilthlc traional S d of Suprem A t financial statilcnts that arc teirc isstnat w i exss Mit n a rcsponi1ilit\ Incluodes desiolw "i1I~~~i111 III niTi'1Ifl7flki0 11 .' krearai l of the fillancial slaicicilts tht ;1c ti iro mil l l -i>"'1 aV.'. : fraud or errorn Auditor's Rtsponsilitie e for the Financial otfat unents Mv obJectiveCs are to obtain reas~onable assu-rncc about xxMiether thL I-111, nAuci Iac' IICIIWF are tree from material inistatement. hether due to 11-id or err and to i suc nIr that includes nly opinion. Reasonable assuranei a high level of assurance. hut is nTI A u:na that a audit conductcd in accordance with International Standards Of SUpreme Andt nmitin (ISSAIS) will always detect a material misstatement when it existna isstatements cwhe due fraud or error and arc considered material if individal or in the aiv,r!a1e thev Cou,d r una,wiI be expected to influence the econom ic decisions of users taken oi the basis o l he rsaof statements. As part of a o audit i accordance with ISSAls. I ecxeris professional jUdn ent and maintn professional sCeptiCISl throughout the audit. I also: * dentif and assess the risks of iaterial nisstatellent of the financial statements, whetaer ie to fraud or error. design and perform audit procedures responsiv e to those risks, and obtaInI audit evidence that is sufficient and appropriate to Pro ide a basis or myuo opinion. he is not detecting a material misstatement resulting from fraIUd is higher than for one rcSUltin1g from e rro r, a s 1raud may involve Collusion, l'or-cry,. intentional onilssions, misreprCeentations,~ or the ov erride otfinternal control- * Obtain an understanding of internal control relevant to the audit in order to desin audit procedures that are appropriate in the circumstances, but not for the purpose o fex Pressin Jin opinion on the effectiveness of the internal control. * Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. * Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underl ing transactions and events in a manner that achieves fair presentation. 9 I CouiIcIIIIaIte Nith those elharged w iih \ema go\ e regar vdi m ter and lining of Ilie audit and signi'licami andit fvindins incuding a ilic;m dl coto that 1 identify du.ri ng myl andit. 1 also proi de hose ch1arged \ ih ov er ine wi th a s[t e ment that he compld ti le requirements regarding independence. aid to commnicate with themi al1 relai \ nship adhem)] that may reasonably be thofLht lo beo on my iindependenc e, and \wherc appleable.ee r From the matters communicated wNith these charged mith goermnance. I determilne those mr t \ere of most sigi.ficance in the audit ofl the financial stateiment of the current period and ar rk the key audit matters. I describe these matlers in nm\ auditor's report unless aw or regunla on plecx c d public diseclosure ahout the matter or when, in extremely rare circuiistances. 1 deeiine ha ai iner should not be communicated in my report because the adverse colseqlences of doing o w ould reasonably be expecied to outweigh the public interest beneflis of suhli cormnicaii tion. The egagemenit auditor on the audit resulting in this independent Auditor s report is: Signature: .. THOMAS K.B. MAKIWA ACTING AUDITOR GENERAL NATIONAL AUDIT OFFICE LILONGWE MALAWI Date ........ . 10 l flNI(l-R i i\ \ i i H \\TI m I IN li \R I ',11 \I\ )1 NI 'STATE'N 1N OF< RE IrTs A\Nl p'~1 l~I d ,>( NTA -1 V N 1 NI V lR U'J l >']','N N 1) 1,PN MI I - f1 1 Ajl (I i 2l S 8 fi i Recei 4ts 1 ilnce brehti forwa ecti )rd from Direct Payi ent Tota Reeil(pct c Ocutaina Lun4,422 514 6,51 2,499 232 3,482 Less: U)ses of FunIds by C ategory~ I. innovi\ation.> Pevenion, Detrectio nd Treaitmniit of TB 13203 120) (.6636,5 2. Regional Capacity for diseaseæ Survex ilIlance [DiagznosiIcs and Management of TB and Occupational Lwng L.360 555 I ,895 5j.0 7- 3. Regional learning and Innovation and Project Managemienit 1,6.0536 2.290 983J77 l 6. Preparatory Advance 332,400 Total Expenditures 4,214,210 5,860) 2,194,639 3,066 Foreign Exchangc Difference Net Cash Available 208,304 290 304592 15 Presented Bv IDA Designated Account RBM Holding Accounting 23723 322.73 308,968 2 FMB Operating Account (62,9|9) (88) (4,376) (b) FDIH Operating Account 39,500..- 55 Total Closing Cash Balance 208,304 290 304,592 4415 11 ST 4 11\1FN Ol~ RCI IFS N I)1' ~1N 1N li AI~ il (> I> I l 'l I041 RN1, , AlC 12 RIi)I AN I l I1 STTl1ETOF REFPSAND 1 FOR T4F YFAR FNDIt) 31 D>V( IMB4R 2018 1s Recipts Ral nee broughti Ioi \ aid from 2017 D)irect PaI\ mnent I i' Total Rcccipts 4422 4 6 1 2.499232 Less: Uses of Funds bY Category I. Infrovative prevention, Detection and Treatment of TB Enhance case detectien & iFreameni cee Standardized package of 'ccupatiomal I el ih ,ervices and Mining Safe acr,iss piricipaling couniries 42 16,7 2. Regional Capacity for disease surveilance, Diagnostics und Management of TB Occupatiionul Lung Diseases Improv ingz Quality and Avilailit of lunan Reoumrces I01868. Strengthenin Diagnostic Capacity and DiSease Surv ejllance L130,761 1I 4t Strengthening Mine - ealih Regulatiion 1i25926 I '5 41 3.Regional Learning and Innovarim and Projeci Management Operational Research and Knowledg,e Sharing 676,317 94 1 '14 1 Centres of Excellence in TB and Ockcupational Lung Disease Control l 296 1 6 5 Regional Coordination. Po icy Advocay and Slai monization Project managemenT 922.39 i 183 5 Projeet Preparatory Advance -- 32400 6i Total Expenditure 4,214,210 5.860 2,194,639 3 066 Foreign Exchange [Difference Net Cash Balances 208,304 290 304.593 41; Presented By IDA Designated Account RIBM ][olding Accounting 23 1,723 323 308 9T12%1 FMB Operaling Account (62,919) -88 (4,376) FD11 Operating Account 39540 55 Total Ciosing Cash Balance 208,304 290 304,592 415 12 I i\A \i \ I l AI M il 1)(,V 1 \ . \('I \l 1 \Ii 'N11 U RI \ ( \Nu (,OR\ FOR 111VY \ \R UNDI 1) 31 DI( I MBU R 20 18 CUkTiGORN Bl id i A IMI kRI V R \( GE A' I \N V \RI\ I 1 Uon t ND,000 IS WC I) n '13 em I I mrI v elm Pri ent i e i p.. le ultwice l' ee Iuann i , Iiiesn l !l .. carm.afi 5ndt860u Tota1 8I09 536 2 248 72 0 3,066 2Æ43 5 13 11~i fil 11 ii i M)f \ 1 wi VDP PP91i DESIGNATUD ACC)1 NTR ()ONCILIATION AIN TV31 1D UI 20 8 umuloire1 CaduNce to end ur reorm er Cumulative expenditures to end oflast repr't peio 3 -uttndm; t - e---- Part Il 4 . Openin DA i amc ag benIgo eotn pro a fbgn (ate) Ocoe 5 -Nceý öNti 1)\ Acount Ho ding -R BM I-22 2 t Account Operatig- FM IB (70.123 7 Account Operating- FDH (J_39979 _ - 1,250,995 1,250199, 5. Add Subtract Cumulative Aidjustments (i anyl) ,dvances from World Bank durinz 6- rel iod (1) -899.912 899.1-_ lines 5 and 6 899.912 8999l 2 8. Outstandin balances to be accounted for (add lines 4 and 7) - 50-907 9. Closing DA balance at end of current reporting period- December 8 Account DA Accouit lolding 322.734 3227 34 Operating account (87,63 1) (87,631) Account Operating- FD1H 55,014 55.0 14 290,117 290 117 10. Add Subtract : Cumulative adjustments (2) Expenditures for current reporting 1 period 1860.790 1,860,790 14 10 ill IM kN l Ri(l 11 11 R( 11 kolt AD111 \ 11R( D 1 Ad MnS 10 NVnd ( D i 1 Ad1d imes e) and 12 14. DitTeince (if ,l an (line s less [Mi 31 (Ne D Part tål 15 1 otal forecasted amouni toe paid b r, zu Mf 16 Less Closinge DA balance alftr adjusments 17, cirect Payments Special (on minnie 8.K Add Es 16 and 29 17 291111 2= l- 4,48439 19 Cash requirement from orld Bink for next to reportig period (line 15 less line ___ 5.343__39 _9,600 s480 15 XIRKS~~ ~ N viskl t (Is MD Ni 11 skul \ 10 101OM 1 M rN \M\l. M , 1 st) W i j SlåN FIO 1111 å NION IS PVRIOD lM D) DI (1 \) 1 TMlWR `,oS1 1. Natur of Businem Southen Africa l olerculoi and llh S mn Skalp,t Pjr I än n e\ nd IDyJ imp lenmented hy the Ministry of eallh and Pp I he pr e h a i1 Iri 1 pa Ind the total pro.ject costs i SI 17 niin mpising a 1San Yf m ilD 1 l ~ 1 SD 9 milion. Thie major aciities of the project ret ient and ni in m and their lfmly eonitaes on lie 113 h.in 1 TB ceeing in reas uui mines. case notifeation through the 1-1alth ytemnd prIorent « a u There is a cmnipnent to eåtab`Sh and inain sputum clleti pn n notificat1on and nipre p t e e a my, 2. Significant Accounting Poficies 2.1 Basis of preparation The financial statements hae been prepaied on ca dh bais in am.m om 0 e åtm! Public Sector accoinling Standards. The finaneal statenemts of te Projec are expressed i US Dkllars and Malawi Kwvkaclia, wlhich is tle r eporting and 1unetional ui rrency respccti\ ely ofthe Project. 2.2 Foreign currency transactions Local currency receipts and expenditures are translated into United States Dollars usin e exchange rates that Reserve Bank of Malaswi sed to convert the proceed froni the -pecial account. Wkhere part of the expenditures has to be met from the prceeds of suISeqcuent drawdowns fron special to local account, (his is done on First in First out (FIFO) basis. A1 local expenditures paid iron the local accounts/curreney are translated back to the USD at the actual rate used för the transfer fron special to local account. Cash balances held in foreign currency are reported using the closing rate. Gains/Losses on oreign currency transaetions balances are dealt within the Statement of Special AcCount Activities. 2.3 Receipts Receipts are recognised when they are credited in the projects designated account held at Resen,e Bank of Malaw i. The project receipts comprised. fumding from the donor, and direct pay ments made to the suppliers. 16 OTES TO Tiii FINANCIA, S 1 TNI' l( ON l INI l ) IFOm IlF 10 MO\iIlS 14 111)I WRR 0, 3. Repkulishminelt to tlhe Special Account 2019 \\ithdraw aI \pplication mount \ unt NI K Numher \NVA 00------ WA 00 Total 4,758 3 415,888 4. IDA Direct Payments These are amounts that were paid by IDA Direct to the suppliers during th1e period tinder rc ev as folow s: Withdrawal Amounlt (USS) Amfount (MIK) ApplicationNumber Supplier I I nt ÍtrI ystms241,163 173,155,034 DP 03 [)P 04 World Wide 1harmaceutic als 736,600 528,878,800 977,763 702,033,834 5. Disbursement Method 1he project is using reporting Based method of disbursement. The Interim Financial Reports (IFRs) are used for replenishment to the Designated Account. 17 H NAQ( u \l NAEl NH 6. Non-(Current Assets (11r dincom re purpO M s ly) Capita! expen=dture is experud in the rar in prc and ni provin f d i n made on al non-curreni asses. this schedule inclkdes al e c i h p inceptiion and are sated a cosi Deta il Arin t 201 ( SI) 2018 \I\K Opening BAlan,ce-) Ch in Ialamee 1j34.390 1,215,846,364 7. IDA Loan/Grant Disbursements The loan and gant funds are accessed thnrgh initial snbm issiorn of a six mouhs frecast to IDA wNho in turn disburses funds as an advance to the Project Designated Account. Thie Interim Financial Reports are then used to document the utilisation of funds on a quartery basis throu the Client Connection Portal. In terms of procurements above the required threshold. suppliers are directly paid to their bank accounts. The total disbursements for the year under rexiew were US$ 5,731,505. 8. Economic Factors Economie faetors relevant to the project s perorrane are set out below; Economic trends as at 3 l1 Decenber 20 18 were as `foloxks: Kwacha/Rand 52.0129 KwJacha/Dollar 718.1976 Inflation 7.1% 18