X'OFV NATIONAL AUDIT OFFICE BUREAU DU CONTROLEUR GENIRAL DES COMPTES DE VANUATU 'k4 no a0 3 August 2017 MrJesse Benjamin Director General Ministry of Climate Change Adaptation, Meteorology, Geo Hazards, Energy, Environment & National Disaster Office PMB 9054 Port Vila Dear Jesse FINAL AUDITED FINANCIAL STATEMENTS OF THE MAINSTREAMING DISASTER RISK REDUCTION (MDRR) AND INCREASING RESILIENCE TO CLIMATE CHANGE NATURAL HAZARDS PROJECT (IRCCNH) FOR THE YEAR ENDED 31 DECEMBER 2016. The audit for the Mainstreaming Disaster Risk Reduction (MDRR) and Increasing Resilience to Climate Change Natural Hazards Project (IRCCNH) has now been completed by Barrett & Partners. Please find attached a copy of the audited financial statements for the project and management letter. Our Office wish to thank Barrett & Partners and the staff of VMGD who conducted and participated in the audit. If you have any queries or concerns please let me know. cOFj Yours sincer &AWAS Elsie Dick 2eL. Acting Au Cc: Hon. Ham Lini Vanuaroroa, Minister of Climate Change Adaptation David Gibson, Director, Climate Change Brian Philips, Project Coordinator, Project Management Unit Franz Drees- Gross, World Bank, Sydney Australia Rue Carnot PMB 9037 Port Vila Republic of Vanuatu South Pacific Tel : + 678 23232 Fax : + 678 26079 dl Barrett & Partners Chartered Accountants & Business Adsers AUDIT OF THE FINANCIAL STATEMENTS FOR THE MAINSTREAMING DISASTER RISK REDUCTION PROJECT (PHRD GRANTS No. TF012184) For the year ended 31st December 2016 PO Box 240 1t Floor, B&P House Kumul Highway Port Vila, Vanuatu Tel: (+678) 22280 Fax: (+678) 22317 Email: service@bap.com.vu Web: www.bap-international.com In Confidence Page 1 CONTENTS EXECUTIVE SUMMARY................................................... *......... 3-4 BACKGROUND............................ ..... * *. *.........**** *-5 AUDIT OBJECTIVE............................... 5 SCOPE OF SERVICES..................................6 GENERAL MATTERS.............................................7 AUDIT OPINIONS......................................................... 8-9 FINANCIAL STATEM ENTS.................................................................... o MANAGEMENT REPORT.................. ...... ........ PRIOR YEAR PERIOD AUDIT FOLLOW UP.................... In Confidence Page 2 EXECUTIVE SUMMARY Barrett and Partners has been engaged by the Office of the Auditor General to carry out an audit of the Mainstream Disaster Risk Reduction project, funded by the World Bank for the Government of Vanuatu. These funds are administered by the Meteorological and Geo-hazard Department. The financing agreement was approved on 1st October 2012 for an equivalent amount of USD2,728,000 for withdrawals up to 30th April 2017, as extended to strengthen urban planning and tsunami preparedness in the main urban areas. The project consists of five major components described below. The period audited is the year ended 31st December 2016. This will be followed by another fiscal audit. The summary grant income and expenditure for the audit period is described below; Actual VUV RECECEIPTS Grant assistance - PHRD (TF 012184) 138,342,268 TOTAL RECEIPTS 138,342,268 PAYMENTS I Risk Mapping to Support Urban Preparedness and 52,713,374 Planning 2 Tsunami Warning System for Urban Areas 69,259,939 3 Integration of Disaster Risk Reduction and Climate 970,787 Change Adaption 4 Project management, monitoring & Evaluation 10,697,612 5 Project Management 1,370,727 TOTAL PAYMENTS 135,012,439 The objective of the audit is to enable us to express our opinion on the accuracy, validity and completeness of the following; i) Statements of Expenditure, ii) Designated Account, iii) Financial statements, and iv) Compliance with the financing agreement and Vanuatu legislation In Confidence Page 3 We achieved the audit objectives by using the World Bank Guidelines for the Annual Reporting and Auditing, Disbursement Manual and Procurement Policies and procedures. The audit of the receipts and payment expenditure of VUV138,342,268 and VUV135,o12,439 respectively which entailed the following: * Sample tested loo% and 43% value of financing receipts and payment expenditure respectively in relation to accuracy and compliance (including LPOs, imprest, journals and consultancy fees); * Reviewed the content, consistency and compliance of financial statements and supporting notes; * Reviewed the balance and procedures for the Designated Account; * Compliance with Finance Agreement and Vanuatu Financial Regulations; * Compliance with International Public Sector Accounting Standards (IPSAS); and * Reported findings with risks, recommendations and responses. Summary Findings During our audit we have identified one finding which would be required to be included in our detailed management report on page 11. Conclusion Except for finding identified above there are no material or significant matters which need to be drawn to the attention of the Stakeholders of the Financing Agreement. In Confidence Page 4 BACKGROUND The Government of Vanuatu has received the following grants towards the cost of the "Mainstreaming Disaster Risk Reduction" (MDRR) project implemented by the Government of Vanuatu through its Vanuatu Meteorology and Geo-hazards Department (VMGD) of its Ministry of Climate Change and Natural Disasters: World Bank grant TF 012184 from the Japan Policy Human Resources Development (PHRD) trust fund signed 26 September 2012 for the amount of USD2,728,000 ending 30th April 2017, as extended. The objective of the project is to improve the hazard monitoring and warning services in a state-of-the-art purpose build warning centre, and by providing appropriate warning procedures for geo-hazards. To meet these needs, the Project will support the following components (i) Risk mapping to support urban preparedness and planning, (ii) Tsunami warning system for urban area, and (iii) Integration of disaster risk reduction and climate change adaptation activities. The Vanuatu Meteorology and Geo-Hazards Department (VMGD), through its Project Management Unit (PMU) is responsible for overall project management. Project Implementation Agencies include the VMGD, the National Disaster Management Office (NDMO), and the Department of Local Authorities (DLA). These Terms of Reference refer to the requirement to undertake an annual financial audit for each year of the three year project period: the first one covering project activities and expenses for the 15 months ended 31 December 2013, and thereafter for each calendar year that financial transactions occur for the project (currently estimated till 30th April 2017). OBJECTIVE The objective of the audit of the project financial statements is to enable the auditor to express an opinion on the accuracy, validity and completeness of the Statements of Expenditure, designated account and the financial statements and on whether transactions were in accordance with the financing agreement and Vanuatu legislation. The project transaction ledger and contract ledger provide the basis for preparation of the project financial statements and are established to reflect the financial transactions in respect of the project. In Confidence Page 5 SCOPE OF SERVICES In accordance with the terms of reference the audit will be carried out in accordance with International Auditing Standards and will include such tests and controls as the Auditor considers necessary under the circumstances so as to allow an audit opinion to be formed. It is highly desirable that the Auditor be familiar with the Guidelines: Annual Financial Reporting and Auditing for World Bank Financed Projects (June 2003). The Auditor should also be familiar with the Bank's Disbursement Manual and Procurement Policies and Procedures. These documents may be obtained from the Project Team. The Auditor shall submit the audit report no later than six (6) weeks after receiving the financial statements for each period at the end of the Financial Year, to the Project Director (VMGD Director) as the Government of Vanuatu (the Client) designated agent. In carrying out the audit, special attention should be paid to the following: General Matters, Statements of Expenditure, Designated Accounts, as well as the following: Fraud and Corruption: Consider the risks of material misstatements in the financial statements due to fraud as required by ISA 240: The Auditor's Responsibility to Consider Fraud in an Audit of Financial Statements. The auditor is required to identify and assess these risks (of material misstatement of the financial statements) due to fraud, obtain sufficient appropriate audit evidence about the assessed risks; and respond appropriately to identified or suspected fraud; Laws and Regulations: In designing and performing audit procedures, evaluating and reporting the results, consider that noncompliance by the implementing agency with laws and regulations may materially affect the financial statements as required by ISA 250: Consideration of Laws and Regulations in an Audit of Financial Statements; Governance: Communicate audit matters of governance interest arising from the audit of financial statements with those charged with governance of an entity as required by International Standards on Auditing 260: Communication of Audit Matters with those Charged with Governance; and Risks: In order to reduce audit risk to an acceptable low level, determine the overall responses to assessed risks at the financial statement level, and design and perform further audit procedures to respond to assessed risks at the assertion level as required by Internal Standard on Auditing 330: the Auditor's Procedures in Response to Assessed Risks. In Confidence Page 6 All external funds have been used in accordance with the conditions of the relevant financing agreements, with due attention to economy and efficiency, and only for the purposes for which they were provided. Goods and services financed have been procured in accordance with the relevant Financing Agreement; All necessary supporting documents, records, and accounts have been kept in respect of all project activities including expenditures reported via Quarterly Financial Reports. Clear links should exist between the project account records and reports presented to the Bank. The Designated Accounts have been used and maintained in accordance with the provisions of the relevant Financing Agreement. The project financial statements have been prepared in accordance with and consistently applied cash basis per International Public Sector Accounting Standards (IPSAS) and give a true and fair view of the financial situation of the project as at 31 December 2016 and of resources and expenditures for the period ended on that date. In Confidence Page 7 Unqualified Audit Opinion on the Mainstream Disaster Risk Reduction project for the year ended 31t December 2016 The Auditor-General is the auditor of all public funds. The Auditor-General has appointed Barrett & Partners as auditors pursuant to Section 24(1) of the Expenditure Review and Audit Act [CAP.2411. The funds received from the World Bank are held in the Government of Vanuatu Development Fund Account and are administered by the Government of Vanuatu's Meteorological and Geo-hazards Department. It is the responsibility of the Government to ensure funds are managed in accordance with Government financial regulation and in accordance with the finance agreement. Our audit is to provide an opinion on the Annual Project Financial Statements, Statement of Expenditures, Designated Account and Compliance of the Mainstream Disaster Risk Reduction project funded by the World Bank. In forming our opinion we carried out appropriate tests with regard to materially in accordance with the audit objectives in conjunction with Financial Regulations, World Bank requirements and grant agreement to provide opinions in relation to matters in the above paragraph. Audit Opinion In our opinion we are satisfied that the financial position, results of operations and cash flow of the Annual Project Financial statement for the Mainstreaming Disaster Risk Reduction project (PHRD Grant No TF 012184) for the year ended 31st December 2016 stated on page 1o is in accordance with International Public Sector Accounting Standards: Financial Reporting under Cash basis of Accounting (IPSAS). Furthermore we are satisfied, a) that the accuracy and propriety of expenditure of the Statement of Cash Receipts and Payments on page lo;. b) with the Banks procedures and the balance of the Designated Account at the year end; and In Confidence Page 8 c) with the compliance in accordance with the Public Finance and Economic Management Act [CAP 244], The Government Tenders Act [CAP 245] and the Vanuatu Financial Regulations. Barrett & Partners 30th June 2017 In Confidence Page 9 COD ni m CG z I- 6 z rZ CL z 2 5m z: c o- b ri ri 0. z L - z z REPUBLIC OF VANUATU/RtPUBLQUE DE VANUATU VANUATU METEOROLOGY AND GEO-HAZARDS DEPARTMENT DEPARTEMENT DE LA METtOROLOGIE ET DES GtORISQUES DE VANUATU Phone: (678) 24686, 22932 VO1P: 5305 Fax: (678) 22310 Email: admin(Mmeteo.gov.vu Website: www.meteo.gov.vu Address: PMB 9054, Lin! Highway, Port Vila, Vanuatu (Address correspondence to Director) (Toute correspondance doit &tre envoyde ou Directeur) FINANCIAL STATEMENTS FOR THE MAINSTREAMING DISASTER RISK REDUCTION (MDRR) PROJECT PHRD GRANT No. TF012184 (VANUATU) For the Year Ended 31 December 2016 REPUBLIC OF VANUATU/RPUBLIQUE DE VANUATU VANUATU METEOROLOGY AND GEO-HAZARDS DEPARTMENT DtPARTEMENT DE LA METOROLOGIE ET DES GtORISQUES DE VANUATU Phone: (578) 24686, 22932 VOJP: 5305 Fax: (678) 22310 Email: adminQmeteo.gov.vu Website: www.meteo.gov.vu Address: PMB 9054, Lini Highway, Port Vila, Vanuatu (Address correspondence to Director) (Touts correspondence doit 6tre envoye ou Directeur) Table of Contents Statement of Cash Receipts and Payments 3 Statement of Comparison of Budget and Actual 4 Statement of Accounting Policies and Notes 5 1. Accounting Policies 5 2. Cash Receipts (VJV) 7 3. Cash Payments (VUV) 8 4. Cash Balance 10 5. Employee Entitlements 10 6. Budget 10 7. Commitments 11 8. Imprests 11 9. Property Plant & Equipment 11 10. Related Parties 12 11. Creditors 12 12. Authorization Date 12 REPUBLIC OF VANUATU/RtPUBLIQUE DE VANUATU VANUATU METEOROLOGY AND GEO-HAZARDS DEPARTMENT DPARTEMENT DE LA METtOROLOGIE ET DES GtORISQUES DE VANUATU Phone: (673) 24585, 22932 VOIP: 5305 Fax: (678) 22310 Email: admin(meteo.gov.vu Website: www.meteo.gov.vu Address: PIMAB 9054, Lini Highway, Port Vila, Vanuatu (Address correspondence to Director) (Toute correspondance doit Ctre envoy0e au Directeur) GOVERNMENT OF VANUATU VANUATU METEOROLOGICAL AND GEO-HAZARDS DEPARTMENT FINANCIAL STATEMENTS FOR THE MAINSTREAMING DISASTER RISK REDUCTION PROJECT (PHRD GRANT NO. TF 012184) FOR THE YEAR ENDED 31 DECEMBER 2016 STATEMENT OF CASH RECEIPTS AND PAYMENTS - BY CATEGORY AND COMPONENT (VUV) Notes 2016 2015 Cumulative CASH RECEIPTS Direct Payments 79,512,018 - 79,512,018 Designated Account 2 58,830,250 10,791,467 165,883,896 TOTAL CASH RECEIPTS 138,342,268 10,791,467 245,395,914 CASH PAYMENTS 3 Category 1- Goods, Works, Consultants' Services & Training 133,641,712 18,454,646 222,030,820 Component I - Risk Mapping 52,713,374 5,365,148 59,835,395 Component 2 - Tsunami Warning System 69,259,939 5,022,728 116,731,843 Component 3 - Integration of DRR and CCA 970,787 11,879,064 Component 4 - Project Management, M&E 10,697,612 8,066,770 33,584,518 Category 2 - Operating Costs 1,370,727 1,949,028 5,064,143 Component 4 - Project Management, M&E 1,370,727 1,949,028 5,064,143 TOTAL CASH PAYMENTS 135,012,439 20,403,674 227,094,963 CASH RECEIPTS LESS CASH PAYMENTS 3,329,829 (9,612,207) 18,300,951 IMPRESTS 8 224,540 - 224,540 NET CHANGE IN CASH 3,105,289 (9,612,207) 18,076,411 ADD OPENING CASH BALANCE AS AT 1 JANUARY 14,971,122 24,583,329 - CLOSING CASH BALANCE AS AT 31 DECEMBER 4 18,076,411 14,971,122 18,076,411 These statements are to be read in conjuction with the accompanying notes and accounting policies 中，寸 REPUBLIC OF VANUATU/RtPUBLIQUE DE VANUATU VANUATU METEOROLOGY AND GEO-HAZARDS DFPARTMENT DOARTEMENT DE LA MfTtOROLOGIE ET DES GtORISQUES DE VANUATU Phone: (678)24686,22932 VOIP:5305 Fax: (678)22310 Email: admin0meteo.gov.vu Website: www.meteo.gov.vu Address: PMB 9054, Uni Highway, Port Vila, Vanuatu (Address correspondence to Director) (Toute correspondance doit 6tre envoy6e ou Directeur) Statement of Accounting Policies and Notes 1. Accounting Policies Basis of Preparation The financial statements of the project have been prepared in accordance with the requirement of the Public Finance & Economic Management Act (Cap 244) which includes the requirement to comply with generally accepted accounting practice. The financial statements have been prepared in accordance with Cash Basis IPSAS "Financial Reporting under the Cash Basis of Accounting". There have beenno changes in accounting policies during the financial year. Reporting Entity These financial statements are prepared specifically for a project that is managed by the Vanuatu Meteorology and Geo-Hazards Department (VMGD). The project is funded through one grant of US$ 2,728,000 from the Japan Policy and Human Resource Development Technical Assistance program (PHRD TF No.12184) and implemented through the World Bank. The VMGD forms part of the Government of Vanuatu (GoV). VMGD provides meteorological, geo-hazards and climate change adaptation services to the people of Vanuatu. Vanuatu has over the past decade continuously improved its hazard monitoring and warning services and has taken the lead within the region in creating a national hazard observatory housing the newly established VGMD, as well as the National Disaster Management Office (NDMO) in a state-of-the-art purpose built warning centre. With the integration of the geo-hazard section into the meteorological service the lack of appropriate warning procedures for geo-hazards and the limited capacity to provide end-to-end warning services, in particular for tsunami, became apparent. To this end, VMGD and NDMO with the support of the World Bank have successfully secured funding from the Japanese Government through the PHRD to address these needs. Under the Grant Agreement, different Categories of expenditure are provided for as follows: Type US$ Category I Goods, works, consultants, services and Training 2,683,000 Category 2 Operating Costs 4,000 Total 2,728,000 REPUBLIC OF VANUATU/RtPUBLIQUE DE VANUATU VANUATU METEOROLOGY AND GEO-HAZARDS DEPARTMENT 4 DEPARTEMENT DE LA MTtOROLOGIE ET DES GtORISQUES DE VANUATU Phone: (678) 24686, 22932 VOIP: 5305 Fax: (678) 22310 Email: admin@nmeteo.gov.vu Website: www.meteo.gov.vu, Address: PMB 9054, Lini Highway, Port Vila, Vanuatu (Address correspondence to Director) (Toute correspondance dolt 6tre envoyde ou Directeur) The allocation of expenditure by Category is managed as follows: * Components 1, 2 and 3 are all fully under Category 1; * Component 4 is split between Categories 1 and 2. The grant agreement identified the budget activities according to the following four components to be implemented under the project: 1 Risk Mapping to Support Urban Preparedness and Planning This includes activities to develop hazard and risk models and maps in a scale suitable for urban and infrastructure planning, while developing the capacity of VMGD. 2 Tsunami Warning System for Urban Areas This includes.activities to establish and pilot an integrated end-to-end tsunami warning system for the municipalities of Port Vila and Luganville, together with carrying out community awareness campaigns. 3 Integration of Disaster Risk Reduction (DRR) and Climate Change Adaptation (CCA) activities This includes activities to strengthen and institutionalize DRR and CCA within the national framework. 4 Project Management, Monitoring and Evaluation. This includes activities to carry out effective and efficient project management. The project's accounting is fully integrated within the GoV's Smart Stream system. Payments are allocated against the respective Category and Component, and reported accordingly. The closure date of the project has been extended by four months to 30 April 2017; a further four months is available for settling expenditures incurred by 30 April 2017. Accounting Period IPSAS cash accounting standards require that general purpose financial statements be prepared at least annually (IPSAS cash para 1.4.1). These financial statements cover the fiscal year 2016. The balance of undrawn grant as at 31 December 2016 is US$ 350,233, which is approximately VUV 39 million. Currency Reporting Currency The reporting currency is Vanuatu Vatu (VUV). 6 REPUBLIC OF VANUATU/RtPUBLIQUE DE VANUATU VANUATU METEOROLOGY AND GEO-HAZARDS DEPARTMENT DEPARTEMENT DE LA MtTtOROLOGIE ET DES GtORISQUES DE VANUATU Phone: (678) 2q686, 22932 VOIP: 5305 Fa: (678) 22310 Email: admin(Bmeteo.gov.vu Website: www.meteo.gov.vu Address: PMB 9054, Lini Highway, Port Vila, Vanuatu (Address correspondence to Director) (Toute correspondance doit 6tre envoy.4e ou Directeur) Foreign Currency In-country payments made in foreign currencies and reported in these financial statements have been converted to VUV by the National Bank of Vanuatu at the applicable rate as of the date of transaction. The in-country fund receipts transferred from the World Bank were all in VUV. The grant mentioned above is denominated in US$. Withdrawals are charged against the grant, in the grant currency, based on exchange rates applied by the World Bank. Cash and Cash Equivalents Cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash which are subject to an insignificant risk of changes in value. 2. Cash Receipts (VUV) SUMMARY OF CASH RECEIPTS FOR 2016 (TF 012184) WB Value Foreign Currency Date VUV Amount Currency 1. Direct Payments * Beca International 03/03/16 20,573,948 285,005 NZ$ Gencom Technology 15/06/16 7,820,970 100,726 NZ$ Meteo International 31/10/16 17,170,302 145,176 EUR Top Signs 05/12/16 12,160,800 Beca International 13/12/16 21,785,998 285,004 NZ$ Total Direct Payments 79,512,018 * Direct Payments in foreign currency converted to VUV as per www.xe.com on WB value date 2. Designated Account Expenses replenishment 11/01/16 5,734,599 Expenses replenishment 25/02/16 7,294,279 Expenses replenishment 28/06/16 13,851,485 Expenses replenishment 6/10/16 9,435,037 Expenses replenishment 19/12/16 15,515,229 51,830,629 Unallocated as at 31/12/16 ** 6,999,621 Total Designated Account 58,830,250 " The unallocated amount was processed by WB in 2016, and in Smart Stream in 2017 I It REPUBLIC OF VANUATU/RfPUBLiQUE DE VANUATU VANUATU METEOROLOGY AND GEO-HAZARDS DEPARTMENT DEPARTEMENT DE LA M9TEOROLOGIE ET DES GtORISQUES DE VANUATU Phone: (678) 24686, 22932 VOP: 5305 Fax: (678) 22310 Email: admin(0Dmeteo.gov.vu Website: www.rneteo.gov.vu Address: PMB 9054, Lini Highway, Port Vila, Vanuatu (Address correspondence to Director) (Toute correspondance dolt 6tre envoyde au Directeur) The Designated Account (DA) is the local, entity-managed, account; funds are transferred from World Bank periodically, from which payments are made. Direct Payments are made by World Bank directly to the supplier/consultant, based on the official request of the authorized signatories of the project; for this project, there are no Direct Payments to date. VMGD receives the funds, which are managed by the VMGD/PMU, through the centralized Smart Stream system. Under this arrangement VMGD has control of the funds and carries out the implementation of the project. PMU makes payments on their behalf after appropriate authorization and documentation provided by VMGD. In the context of the project's operations, given that funds are drawn down from the grant as required in order to meet ongoing expenditure requirements, reporting of budget (including comparison of budget and actual) for Cash Receipts, as well as reporting of Debtors, are not appropriate and are not included in these Financial Statements and accompanying Notes. 3. Cash Payments (VUV) The detailed expenditure breakdown is as per the table on the following page. REPUBLIC OF VANUATU/R9PUBLIQUE DE VANUATU VANUATU METEOROLOGY AND GEO-HAZARDS DEPARTMENT D9PARTEMENT DE LA MtTtOROLOGIE ET DES GtORISQUES DE VANUATU Phone: (678) 24686, 22932 VOlP: 5305 Fax: (678) 22310 s Email: adminl2meteo.gov.vu Website: www.meteo.gov.vu Address: PMB 9054, Lini Highway, Port Vila, Vanuatu (Address correspondence to Director) (Toute correspondonce doit 6tre envoyde ou Directeur) DETAILED EXPENDITURE BREAKDOWN 2016 2015 Cumulative Risk Mapping to Support Urban Preparedness and Planning 52,713,374 5,365,148 59,835,395 Urban Risk Assessment Team 42,359,946 4,799,383 47,159,329 Printing Urban Hazard Maps / Brochures (2) 0 (2) Stakeholder Meetings 1,434,370 477,300 1,947,226 Local Communities Awareness Campaigns 8,226,560 0 9,495,200 Other Workshops & Training 692,500 88,465 1,233,642 Tsunami Warning System for Urban Areas 69,259,939 5,022,728 116,731,843 VMGD Warning Centre Refurbishment 0 1,105,390 21,139,790 NDOC Furniture 0 0 735,300 NDOC Air Con 0 0 336,440 NDOC/TWC IT+Sat Phones 0 0. 13,990,577 NDOC Radio and Emergency Comms 0 0 4,085,000 Warning Centre Operation Adviser 2,984,674 789,186 3,773,860 Urban Policy Adviser 0 300,000 1,200,000 Warning Dissemination System 29,686,656 244,398 29,931,054 Emergency Communications System Engineer 1,020,018 0 1,020,018 Graphic Designer 3,200,000 0 3,200,000 Workshops & Training 7,425,131 0 7,767,059 Tsunami Signage 18,655,223 0 18,655,223 Printing Tsunami Awarness Materials 1,481,232 0 1,481,232 Community Outreach Support Officer 2,842,888 2,583,754 7,452,173 TV Broadcasting Campaign (VBTC) 1,964,117 0 1,964,117 Integration of Disaster Risk Reduction and Climate Change Adaptation 970,787 0 11,879,064 DRR/CCA Policy Adviser t 102,102 0 5,106,054 NAB Workshops 0 0 3,526,994 NAB Meetings 28,000 0 643,556 Other Workshops & Training 840,685 0 2,602,460 Project Management, Monitoring & Evaluation 10,697,612 8,066,770 33,584,518 Project Coordinator 2,596,308 2,753,536 12,658,205 Executive Assistant 1,176,315 2,090,579 5,057,903 Finance Officer 2,087,250 480,040 4,648,582 Procurement Officer 3,780,000 2,127,000 9,546,474 Audit 1,057,739 615,615 1,673,354 Operating Costs 1,370,727 1,949,028 5,064,143 Communications 452,247 396,879 1,222,621 Office Supplies 0 733,326 1,006,448 Advertising 139,802 89,958 706,783 Air Fares 677,555 540,390 1,245,745 Other Transport 12,500 35,190 70,090 DSA 41,050 130,785 657,123 Catering Costs 0 22,500 75,500 Bank Charges 0 0 2,500 Others 47,573 0 77,333 TOTAL 135,012,439 20,403,674 227,094,963 REPUBLIC OF VANUATU/RfPUBLIQUE DE VANUATU VANUATU METEOROLOGY AND GEO-HAZARDS DEPARTMENT DEPARTEMENT DE LA MtTtOROLOGIE ET DES GtORISQUES DE VANUATU Phone: (678) 24686, 22932 VOIP: 5305 Fax: (678) 22310 - Email: admin@rneteo.gov.vu Website: www.meteo.gov.vu Address: PMB 9054, Lini Highway, Port Vila, Vanuatu (Address correspondence to Director) (Toute correspondance doit Ctre envoyde au Directeur) 4. Cash Balance The closing cash balance in these financial statements is taken up as follows (in VUV): 2016 2015 Balance in the GoV SmartStream ledger as at 31 December 2016 9,973,682 14,545,437 Accruals in the GoV SmartStream ledger as at 31 December 2016 1,103,108 425,685 To be allocated in Smart Stream as at 31 December 2016 6,999,621 - Total 18,076,411 14,971,122 5. Employee Entitlements No provision is required for employee entitlements, as the project has no employees with entitlements under the Employment Act. 6. Budget The approved budget is developed on the same accounting basis (cash basis), same classification basis, and for the same period during which withdrawals from the grant account were made (Year Ended 31 December 2016) as for the financial statements. It encompasses the same entities as the financial statements. The lifetime budget in VUV as per these financial statements is as per the budget and procurement plan approved in August 2015. Given the revised closure date of the project of 30 April 2017, the remaining budget available is expected to be utilised in 2017. A total variance on cash outflows for 2016 (Budget of VUV 196.3 million versus Actual payments of VUV 135.0 million, for all components) of some VUV 61.3 million was recorded. The main variances were as follows: Component 1 - VUV 7 million. Underspending under this component were used to supplement component 2, to cover the cost of the Horman contract. Component 2 - VUV 37 million. The variance relates to the contract for Horman, which will be completed in 2017. Component 3 - VUV 17 million Underspending under this component were used to supplement component 2, to cover the cost of the Horman contract. The lifetimeudget is monitored against the likely amount of VUV to begenerated from the US$ grant, to ensure that the grant is not over-committed. 10 REPUBLIC OF VANUATU/RtPUBLUQUE DE VANUATU ]oat VANUATU METEOROLOGY AND GEO-HAZARDS DEPARTMENT t DEPARTEMENT DE LA MtTtOROLOGIE ET DES GtORISQUES DE VANUATU Phone: (678) 24686, 22932 VOIP: 5305 Fax: (673) 22310 o Email: admin(meteo.jov.vu Website: www.meteo.gov.vu Address: PMB 9054, Lini Highway, Port Vila, Vanuatu (Address correspondence to Director) (Toute correspondance doit 6tre envoyde au Directeur) 7. Commitments The outstanding (unpaid) contract commitments, as at 31 December 2016 is VUV 64,931,676 (2015 - VUV 64,931,676), all under Category 1, as follows: F 201.6 2015 Component 1 - 45,205,617 Component 2 60,131,608 12,337,031 Component4 300,066 7,389,028 Total 60,431,674 64,931,676 All commitments are due within one year. Commitments for contracts in currencies other than VUV have been converted to VUV using the exchange rate as at 31 December 2016. 8. Imprests There was VUV 224,540 of unretired imprests as at 31 December 2016 (2015 - nil), as follows: Florence lautu 224,500 Octavie Meltenoven 40 225,540 9. Property, Plant & Equipment Payments for Property Plant & Equipment (PPE) are charged fully as disbursements under the respective Component, and included in the Statement of Cash Receipts and Payments, at cost; these are recorded in a PPE Register, for the purposes of inventory control. 2016 2015 Cumulative Furniture - 1,071,740 IT Equipment - 13,990,577 Other Minor Items - 119,200 TOTAL - 15,181,517 there are no fixed assets purchased on hire purchase schens and no depreciation is being charged. REPUBLIC OF VANUATU/RtPUBLIQUE DE VANUATU VANUATU METEOROLOGY AND GEO-HAZARDS DEPARTMENT t ] DtPARTEMENT DE LA MtTtOROLOGIE ET DES GtoRISQUES DE VANUATU Phone: (678) 24686, 22932 VOfP: 5305 Fax,: (678) 22310 -. Email: admin(0metea.gov.vu Website: www.meteo.gov.vu Address: PMB 9054, Lini Highway, Port Vila, Vanuatu (Address correspondence to Director) (Toute correspondance doit stre envoyde ou Directeur) 10. Related Parties There were no related party transactions during the year (2015 - nil). The ultimate owner of the project is Vanuatu Government through the VMGD, as set out in the Grant Agreement. 11.Creditors There was a total amount of VUV 1,103,108 for 2016 invoices, which were paid in 2017, representing LPOs raised in 2016 but not paid until 2017 (2015 - VUV 395,685). 12.Authorization Date The financial statements were authorized for issue on 30 June 2017 by Mr. Brian Phillips for VMGD and Director General of the Ministry of Climate Change. Mr Brian PHI LIPS Mr Jesse BENJAMIN roject Manager PMU Dire ate Chan e Po 30/06/2017 30/06 12