Government of the Republic of Malawi NATIONAL LOCAL GOVERNMENT FINANCE COMMITTEE (NLGFC) FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE 2019 FOURTH MALAWI SOCIAL ACTION FUND (SECOND ADDITIONAL FINANCING) - STRENGTHENING SAFETY NET SYSTEMS PROJECT- CREDIT 5922 MW AND GRANT 11480 National Audit Office Lilongwe February 2020 NATIONAL LOCAL GOVERNMENT FINANCE COMMITTEE (NLGFC) MASAF 4 -STRENGTHENING SAFETY NET SYSTEMS-SECOND ADDITIONAL FINANCING -CREDIT 5922 MW AND GRANT D1480-MW Table of Contents Page EXECUTIVE DIRECTOR'S REPORT FOR THE YEAR ENDED 30TH JUNE 2019..........2 STATEMENT OF MANAGEMENT RESPONSIBILITIESSPO AUDITOR G EN ERAL'S REPOR T ....................... .................................................. . STATEMENT OF FINACIAL POSITION AS AT 30 JUNE 2019 STATEMENT OF RECEIPTS AND PAYEMENTS FOR PERIOD ENDED 30m JUNE 2 0 19 ............ ............................. ........................................... .......................................... 12 SATEMENT OF DESIGNATED ACCOUNT FOR THE YEAR ENDED 30 JUNE 2019.13 NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30TH JUNE 2 0 19 .1 ...........................1 ....... ........................... . ....... ...... ...... .............. ............... 14 NOTES TO THE FINANCIAL STATEMENTS (CONTNUED) ....................................15 ANNEX 1: DESIGNATED ACCOUNT MOVEMENT FOR THE PERIOD TO 30 JUNE 2 0 19 ............................................................................................................................ . 2 0 ANNEX 11 - FUNDING TO C OUINCSLS .2................................................................. 22 | P a g The Mission of National Local Government Finance Committee (NLGFC). The mission for NLGFC is to provide technical, financial and economic management services in an efficient and effective manner with the view of ensuring adequate mobilization, equitable distribution and efficient utilization of resources for the delivery of quality demand driven services by Local Governments. Strategic Objectives * To improve mobilization, allocation and utilization of public resources by Local Governments: * To improve accountability and transparency in the management of public resources by Local Governments. * To enhance regulatory compliance, efficiency and effectiveness in the use of public resources by Local Governments; * To support planning and management of development resources at Local Authority and community levels; * To facilitate the implementation of the Integrated Rural Development Strategy. * To provide resources which ensure that development investments respond to prioritized community development needs; * To protect financial resources for pro-poor development activities and service delivery at Local Authorities and Community levels; * To finance capacity enhancement of local governance institutions at National, Local Authorities and Community levels; and * To advance Government of Malawi decentralization policy objectives. 3 Pa NATIONAL LOCAL GOVERNMENT FINANCE COMMITTEE (NLGFC) MASAF 4 -STRENGTHENING SAFETY NET SYSTEMS-ADDITIONAL FINANCING - CREDIT 5922 MW AND GRANT D1480-MW EXECUTIVE DIRECTOR'S REPORT (CONT'D) FOR PERIOD ENDED 30r" JUNE 2019 2 FUNDING SOURCES During the year to 30"' June 2019, the MASAF IV Project received funding from the World Bank through Additional financing -Credit no 5610-MW and Grant D045 and Second Additional Financing- Credit no 5922-MWand Grant no Dl480MW- which became effective on 18"' August 2015 and 17h March 2017 respectively. IDA has provided SDR50.2m (US$70million) to support implementation of Strengthening Safety Net Systems Project- Second Additional Financing. MASAF IV Original Financing Under Original Financing, the IDA has provided a total of SDR21.4m - Special Drawing Rights (US$30.4m) to support implementation of Strengthening Safety Net Systems Project. The programme closed on 31 June 2018. MASAF IV First Additional Financing Through Credit no 5610-M W and Grant D045 under Additional Financing signed on 18'h August 2015, the IDA has provided SDR52.8m (USS75million) to support implementation of Strengthening Safety Net Systems Project. The programme closed on 31" December 2018. MASAF IV Second Additional Financing Through Credit no 5922-MW and Grant no DI480-MW under the Second Additional Financing, IDA has provided SDR50.2m (USS70million) to support implementation of Strengthening Safety Net Systems Project. The programme will run up to 30" September, 2020, The Project Development Objective (PDO) of the project is "to strengthen Malawi's social safety net delivery systems and coordination across programs." The PDO is being achieved through the strengthening of a Social Safety Nets system, which would increase productive assets and reduce the impact of shocks and vulnerability of the poor in Malawi and improve coverage of targeted benefits. The overarching goal of the PDO is to reduce vulnerability. In the PDO, strengthening delivery systems means providing coverage and support for the poor and vulnerable households for the purpose of improving incomes, resilience, assets and ability to manage risks. This would be assessed in terms of (i) targeting and coverage of benefits, (ii) adequacy of the benefit in terms of ability of households to invest in household level assets and human capital, and (iii) capacity of involved institutions to manage the program efficiently so that the costs of delivery are within established norms for effective safety nets, The Project activities are supported through three Components and these are: (a) Productive Safety Nets, comprising of three subcomponents: Productive Public Works Programme; Livelihoods and Skills Development; and Social Cash Transfer; (b) Systems and Capacity Building; and (c) Project Management. 4 Pae NATIONAL LOCAL GOVERNMENT FINANCE COMMITTEE (NLGFC) MASAF 4 -STRENGTHENING SAFETY NET SYSTEMS- SECOND ADDITIONAL FINANCING -CREDIT 5922 MW AND GRANT D1480-MW EXECUTIVE DIRECTOR'S REPORT (CONT'D) FOR THE YEAR ENDED 30TI" JUNE 2019 These Financial Statement has been prepared to reflect the activities and position of MASAF IV Second Additional Financing, Strengthening Safety Net Systems Project, Credit no 5922-MW and Grant D1480 for the period ended 30"' June 2019. In the period, the project has spent MK18.8 billion (US$25.7million) to implement various programmes as follows: Component MK(Million) USS(Million) Public Works Sub Programme 8,062,6 11.1 Social Cash Transfer 8,37l.4 11.4 Livelihoods and Skills Development 1,146.6 1.5 Local Authority Capacity Enhancement (LACE) 256.1 0.3 Project Management 962.4 1.3 Total 18,799.2 25.7 3.0 PROGRAMME ACHIEVEMENTS The MASAF IV Project is intended to improve resilience among the poor and strengthen Social Safety net delivery systems and coordination across programs". Since its effectiveness in 2014, the Project has accomplished the following: * Productive Public Works Programme (PPW): Since September 2014. resources amounting to USS80.9 million have been disbursed to the 35 councils in the country for PPW implementation of which 80% constituted wages for poor households that participated in labour intensive works. For 2018/19 MK8.Obillion (US$ 1.1million) has been disbursed to 35 councils. PPWP work has resulted in creation of various community assets including: roads, afforestation, Land resources management; small scale irrigation and fish ponds, among others. * Enhanced Public Works Programme (EPWP) Pilot: Following the phasing out of the regular PWP and lessons learnt, the NLGFC in collaboration with GIZ and other development Partners will pilot an Enhanced PWP in 10 district councils (targeting 10, 000 beneficiaries) namely Chitipa and Karonga (Northern Region), Nkhotakota, Dowa, Lilongwe and KasungL (Central Region), Phalombe, Blantyre, Chiradzulu and Balaka (Southern Region). These districts were selected primarily based on the existence of household data in the Unified Beneficiary Registry (UBR), as using the UBR as a basis for selection of participants is one of the main features to be piloted. 5 Pag c * Social Cash Transfers: Transfer cash to poor and venerable households through the Social Cash Transfer Programme implemented in II district councils, namely Kasungu, Nkhotakota, Dedza, Nkhatabay, Ntchisi, Rumphi, Chiradzulu, Karonga,. Lilongwe, Blantyre and Dowa. To date, 114,100 beneficiary households receiving transfers against a target of 123,682 beneficiaries, representing 92.3% of the target. A total of MK8.3billion (US$11.4 million) has been disbursed as transfers and transfer related costs to the II councils. * Livelihood and Skills Development (LiSD): LiSD was designed to finance grants for increasing household level incomes and assets through Community Savings and Investment Promotion (COMSIP) groups from previous groups along the graduation ladder. To date, grants amounting to K581.2 million (USD796, 164) have been disbursed to COMSIP groups for skills development and investment. The groups have achieved cumulated savings totalling MK6.97 billion (USD 9.5 million) against the targeted MK4.2 billion for the component target. Average savings per member was estimated at MK42, 464 (USD58.20). Implementation of this component is being facilitated by COMSIP Union. For year 2018/19 K 1 1lbillion (U1S$1.5 million) has been spent for targeting beneficiaries. * Local Authority Management Capacity Enhancement(LACE) Unified Beneficiary Registry (UBR) development and management: In 2018/19 the ptoject continued to coordinate development of a platform for targeting the poor and vulnerable into social protection programmes. A cumulative total of 938,782 households have been registered out of the estimated target of 858,516 in 14 districts representing 109%. These districts include Ntchisi, Rumphi, Chirazulu, Blantyre, Ntcheu, Lilongwe, Dowa, Kasungu, Nkhotakota, Karonga, Chitipa, Likoma, Mchinji and Balaka; MK256million has been spent for Local Authority Management Capacity Enhancement (LACE) activities, * Project Management: MK962million has been spent for Project Management particularly for salaries for project staff, Monitoring and Evaluation and other operational activities. AIifel Banda EXECUTIVE DIRETOR 6 1 a NATIONAL LOCAL GOVERNMENT FINANCE COMMITTEE (NLGFC) MASAF 4 -STRENGTHENING SAFETY NET SYSTEMS- SECOND ADDITIONAL FINANCING -CREDIT 5610 MW AND GRANT D045-MW STATEMENT OF MANAGEMENT RESPONSIBILITIES FOR THE YEAR ENDED 30T11 JUNE 2019 The Executive Director for National Local Government Finance Committee (NLGFC). under the Direction of the Secretary to the Treasury as Controlling Officer and Secretary for Local Government and Rural Development as overseer on programmatic matters, is responsible for preparing the Annual Financial Statements of the NL GFC in accordance with the financing agreements for the projects supporting the NLGFC and in line with the Public Finance Management ACT. In preparing the Financial Statements, the Executive Director is required to: a) Select proper and suitable accounting policies and apply them consistently; b) Make judgements and estimates that are reasonable and prudent; c) Prepare the financial statements on a going concern basis unless circumstances dictate otherwise. d) Comply with applicable accounting standards when preparing the consolidated financial statements, subject to any material departures being disclosed and explained in the consolidated financial statements The Executive Director and Controlling Officers of all agencies utilising NLGFC funds are responsible for keeping proper accounting records that reflect with reasonable accurac at any point in time, the financial position of the components of the NLGFC under their implementation. Each Controlling Officer is a nswerable to the Public Accounts Committee of Parliament, The Secretary to the Treasury, takes overall answerability to the NLGFC Funding partners and Public Accounts Committee. Management of NLGFC is also responsible for maintaining effective systems including designing, implementing and maintaining internal controls relevant for the preparation and fair presentation of these Financial Statements that are free from material misstatement, whether due to fraud or error, selecting and applying appropriate accounting policies and relevant accounting estimates that are reasonable in the circumstances. The financial statemenjs hyve been approved by the National Local Government Finance Committee on....0 . A.&. ..and are signed on its behalf by: EXECUTIVE DIRE'T,R DIRECTOR OF FINANCE 7 P,ag Telephone: + 265 1 770 700 In reply please qiote . Facsimile: +265 I 773 071 +265 1 776 125 NATIONAL AUDIT OFFICE +265 1 774 138 P.O. BOX 30045 CAPITAL CITY All Communications should be addressed to: LILONGWE 3 National Audit Office MALAWI AUDITOR GENERAL'S REPORT TO THE EXECUTIVE DIRECTOR ON THE FINANCIAL STATEMENTS OF THE LOCAL DEVELOPMENT FUND - FOURTH MALAWI SOCIAL ACTION FUND (SECOND ADDITIONAL FINANCING) - STRENGTHENING SAFETY NET SYSTEMS PROJECT- CREDIT 5922 MW AND GRANT DI 480 FOR THE YEAR ENDED 30T11 JUNE, 2019 Opinion I have audited the of Financial Statements of Local Development Fund (Fourth MASAF- Strengthening Safety Nets Systems) Project - Credit Number 5922-MW , comprising Statement of Financial Position, Statement of Receipts and Payments, Statement of Designated Account and other explanatory notes for the year ended 30 June, 2019 as set out on pages 1 Ito 23. In my opinion, the financial statements present fairly, in all material respects, the financial position of the Local Development Fund (Fourth MASAF - Strengthening Safety Nets Systems) lor the year ended 30 June 2019 in accordance with the International Public Sector Accounting Standards (IPSAS) and in the manner required by the Donor. Basis for Opinion I conducted my audit in accordance with International Standards of Supreme Audit Institutions (ISSAls). My responsibilities under those standards are further described in the Auditor's Responsibililies fbr the Aucit ofthe Financial Stolements section of my report. I am independent of the Local Development Fund in accordance with the International Standards of Supreme Audit Institutions - Code ofethics (ISSAI 30) as promulgated by the International Organisation of Supreme Audit Institutions (INTOSAI), and I have fulfilled my other ethical responsibilities in accordance with these requirements. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion. Emphasis of Matter I draw your attention to the following paragraphs in the management letter for the year ended 30 June 2019: * 4.1.1 Payment Vouchers not presented for audit inspection (K61. 800,882.90) * 4.2.1 Duplicate names of beneficiaries for the Social Cash Transfer Programme (K26, 274,400) * 4.2.2 Discrepancies between amounts brought on charge and uncollected amounts as per MIS report (Kl8,284,5 19.54) * 4.2.6 Long outstanding reconciling item on bank reconciliation (K54, 591,960.07) 8 P age My opinion is not qualified in respect of these matters. Key audit matters are those matters that, in my professional judgment, were of most significance in my audit of the financial statements of the current period. These matters were addressed in the context of my audit of the financial statements as a whole, and in forming my opinion thereon, and I do not provide a separate opinion on these matters. I have determined that there is no need to communicate key audit matters in my report due the nature of the audited entity. Responsibilities of Management for the Project's Financial Statements Management of the Local Development Fund is responsible for the preparation and fair presentation of the financial statements in accordance with International Public Sector Accounting Standards (IPSAS) Financial Reporting tinder the Cash Basis of Accounting, Donor terms of agreement and financial provisions, and for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. This responsibility includes designing, implementing and maintaining internal controls relevant to the preparation of the financial statements that are free from material misstatements, \vhether due to fraud or error. Auditor's Responsibilities for the Audit of the Project's Financial Statements My objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with International Standards of Supreme Audit Institutions (ISSAls) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Project's Financial Statements. As part ofan audit in accordance with ISSAls, I exercise professional judgment and maintain professional scepticism throughout the audit. I also: * Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. * Obtain an understanding of internal control relevant to the audit 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 internal control. 9|Page * 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 underlying transactions and events in a manner that achieves fair presentation. I communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit. I also provide those charged with governance with a statement that I have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on my independence, and where applicable, related safeguards. From the matters communicated with those charged with governance, I determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. I describe these matters in my auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, I determine that a matter should not be communicated in my report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. The engagement n udit resulting in this independent Auditor General's report is: Signature:....... . THOMAS K B MAKIWA ACTING AUDITOR GENERAL NATIONAL AUDIT OFFICE LILONGWE MALAWI Date:.:.ThS. I A. . 10 Page NATIONAL LOCAL GOVERNMENT FINANCE COMMITTEE (NLGFC) MASAF 4 -STRENGTHENING SAFETY NET SYSTEMS- SECOND ADDITIONAL FINANCING -CREDIT 5922 MW AND GRANT D1480-MW STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2019 Notes As at 30 June 2019 As at 30 June 2018 Non-Current Assets MK uS MK USs Social Economic Investment Public Works Programme(PWP) 5 8,062,606,355 11,131,119 - Social Cash Transfer(SCT) 5 9,152,15 7,834 12.,523,423 780,754,235 1,089,837 Livelihoods and Skills Development(COMSIP) 5 1,146,639,543 1,512980 . - Total 18,361,403,733 25,167,522 780,754,235 1,089,837 Plant and Equipment Motor Vehicles 7 156,008,070 217,771 156,008.070 217,771 Office Equipment 7 111.111,086 155,100 111,111,086 155,100 Total 267,119,156 372,871 267,119,156 372,871 Total Noncurrent Assets 18, 628,522,889 25, 540,393 1, 047,873,391 1, 462,708 Current Assets Bank and cash Balances 4 7,366,901,350 10.196,254 1,811.729,389 2,529,032 Total Current Assets 7,366,901,350 10,19 6,254 1,811,729,389 2,529,032 Total Funds Employed 25,995,424,239 35,736,646 2,859,602,780 3,991,740 Financed by: World Bank (IDA)Grant D045 and Credit 5610-MW 6 27,257,527,616 37,458,933 2,903.167,918 4,052,553 Local Authority Capacity Enhancement (LACE) 5 (297,759,389) (404,694) (41,668,952) (58,166) Project Management 5 (964,343.988) (1,317,592) (1,896,187) (2647) Total Finances 25,995,424,239 35,736,646 2,859,602,780 3,991,740 Executive Directorector.A.......-* ...................A. Banda Director of Finance.................,...- . .................... .K. Santhe 11 P ag NATIONAL LOCAL GOVERNMENT FINANCE COMMITTEE (NLGFC) MASAF 4 -STRENGTHENING SAFETY NET SYSTEMS- SECOND ADDITIONAL FINANCING -CREDIT 5922 MW AND GRANT D1480-MW STATEMENT OF RECEIPTS AND PAYMENTS FOR THE YEAR ENDED 30TH JUNE 2019 30th June 2019 30th June 2018 Notes MK US $ MK US S Receipts IDA Grant 3 24,354,359,698 33,406,380 2,903,167,918 4,052,553 Cash Withdrawals 24,354,359,698 33,406,380 2,903,167,918 4,052,553 Opening Balances 4 1 81 1,729,389 2,529,031 - Total Receipts 26,166,089,086 35,935,411 2,903,167,918 4,052,553 Payments Public Works Sub Programme 5 8,062,606,355 11,131,119 - - Social Cash Transfer 5 8,371,403,599 11,433,585 780,754,235 1,089,837 Livelihoods and Skills Development 5 1,146,639,543 1,512,980 - . Local Authority Capacity Enhancement (LACE) 5 256,090,438 346,529 41,668,952 58,166 Project Management 5 962,447,801 1,314,946 1,896,187 2,647 Equipment 6 3 - 267,119,156 372,872 Total Payments 18,799,187,736 25,739,158 1,091,438,529 1,523,361 Closing Balance 7,366,901,350 10,196,254 1,811,729,389 2,529,032 12 1 d NATIONAL LOCAL GOVERNMENT FINANCE COMMITTEE (NLGFC) MASAF 4 -STRENGTHENING SAFETY NET SYSTEMS- SECOND ADDITIONAL FINANCING -CREDIT 5922 MW AND GRANT D1480-MW STATEMENT OF DESIGNATED ACCOUNT FOR THE YEAR ENDED 30 JUNE 2019 30 June 2019 US $ Opening Balance 1 July 2018 2,371,044 Receipts IDA Grant 33,406,380 Other Receipts-Interest Total Funds available 35,777,424 Expenditure 1. Goods, works, non-consulting services, consultants' services and Operational Costs for Part A .1 of the Project 10,761,922 2. Goods, consultants' services., Operational Costs and Training for Parts A .2 and A.3 of the Project 1,953,468 3. COMSIP Grants for Part A.2 (a) of the Project 1,135,358 4.Cash Transfer installments for Part A.3(a) of the Project 10,083,088 5. Goods, non-consulting services, consultants' services, Training and Operational Costs for Parts B and C of the Project 1,652,903 Total 25,586,738 Local Operating Account 386,816 Advances to Councils 3,705,052 Designated Account 6,098,818 Total Closing Balance (Designated Account) 10,190,686 13 P awtge NATIONAL LOCAL GOVERNMENT FINANCE COMMITTEE (NLGFC) MASAF 4 -STRENGTHENING SAFETY NET SYSTEMS- SECOND ADDITIONAL FINANCING -CREDIT 5610 MW AND GRANT D045-MW NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE 2019 1. Nature of Business Through Credit no 59220-MW and Grant no 1)1480-MW under the Second Additional Financing, the IDA has provided SDR50.2m (US$70million) to support implementation of Strengthening Safety Net Systems Project. The programme will run up to 301" September 2020. 2. Accounting Policies 2.1 Basis of preparing the Accounts The financial statements have been prepared on the historical cost convention and on a cash basis in accordance with International Public Sector Accounting Standards (IPSAS), except for capitalisation of assets. All receipts and expenses incurred in the period are reflected in the financial statements. 2.2 Fixed Assets Capital expenditures are capitalized in the year the assets are purchased. There is no provision for depreciation on the fixed assets throughout the Project life. There is no revaluation or impairment of assets. The assets are held at cost. 2.3 Grants to Local Assemblies Disbursements for Productive Public Works Programme, Livelihoods and Skills Development and Social Cash Transfer are done through cycles. Once disbursements to Local Assemblies are made, they are treated as Grants in the financial statements. 2.4 Foreign Currency Translation Foreign currency transactions for the income and expenditure account items and fixed assets are translated using the actual exchange rate at the date of draw down. All local expenditures paid from the local accounts/currency are translated back to US dollar at the actual exchange rate at which draw-down was converted at the date of transfer from Special/Designated account to local account. 141 Pa1 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2019 Where the expenditure cannot be fully met from the proceeds ofa draw down, and part of the expenditure has to be met from the proceeds of the subsequent draw down, which may have been effected at a different conversion rate, the translation rate of the total expenditure from the local currency to the US dollar is on First in First out (FIFO) basis. Current assets and special/Designated account balances are translated using the rate at the closing date. (Closing Rate Method). 2.5 Receipts Receipts from Development Partners/Donors are stated at actual amounts drawn from the World Bank by way of replenishment into a Designated/Special Account at Reserve Bank of Malawi and direct payments. 3 - Cash Withdrawals from Grant/Credit Account Date Details VI USS 8/22/2018 IDA Credit MASAF 4 second add. fin -Funding on 22 August 2018 12,.643,424,596 17,228,895 3/13/2019 IDA Grant MASAF 4 second additional Financing - March 2019 5,549,169,311 7,708,323 6/11/2019 IDA Grant MASAF 4 Second Add. Financing - June 2019 6,161,765,791 8,469,162 Total Cash Withdrawals from Credit Financing Account Current Year 24,354,359,698 33,406,380 Total Cash Withdrawals from the Financing Accounts Previous Year 2,903,167,918 4,052,553 Total Cash Withdrawals from the Financing Accounts 27,257,527,616 37,458,933 15 P a e c NATIONAL LOCAL GOVERNMENT FINANCE COMMITTEE (NLGFC) MASAF 4 -STRENGTHENING SAFETY NET SYSTEMS- SECOND ADDITIONAL FINANCING -CREDIT 5922 MW AND GRANT D1480-MW NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) 4.0 Bank Balances Kwacha USs Opening Balances as at 1 July 2018 1 MSB Operating Account 354,234 554 2 Funds Drawn but not yet utilised +Commitments 112,805,742 157,434 3 Designated Account -MASAF IV 1,698.569,412 2,371,044 Total o ening Balance as at 1 July 2018 1,811,729,389 2,529,032 Closing Balances as at 30 June 2019 I RBM Holding Account (Part 1) 58,680 - 127 2 NBM Operating Account 300,686,465 386,943 3 Funds Drawn but not yet utilised Commitments 2,661,758,817 3,710,620 4 Designated Account -MASAF IV 4,404,514,747 61098,818 Total closin Balance as at 30 June 2019 7,366,901,350 10,196,254 16 Pag c NATIONAL LOCAL GOVERNMENT FINANCE COMMITTEE (NLGFC) MASAF 4 -STRENGTHENING SAFETY NET SYSTEMS- SECOND ADDITIONAL FINANCING -CREDIT 5922 MW AND GRANT D1480-MW NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) 5.0 -Productive Safety Net Systems. Capacity Building and Project Management lKwacha USS Public Works Subprojects Disbursements to Sub Projects-Public Works Programme(MASAF IV) 8,062.606,355 11131119 Funds include payment of wages, tools and administration costs to all Councils; resources are disbursed with 80% of resources going to wages and 20% on tools and administration Disbursements to Sub Projects-Savings and Investment - Total charged to PWSB (Category 1 8,062,606,355 11,131,119 Add from previous years - Balance Carried forward 30 June 2019 8,062,606,355 11,131,119 Social Cash Transfer Disbursements for Social Cash Transfer(MASAF IV) 8,371,403,599 11,433,585 Cash transfers are effected bi -monthly payable to beneficiaries in 11 District Councils. An average transfer rate of MK7,000 per household was applied during the year Total charged for SCT (Category 2 & 4) 8,371,403,599 11,433,585 Add from previous years 780,754,235 1,089,838 Balance Carried forward 30 June 2019 9,152,157,834 12,523,423 Livelihoods and Skills Development Resources are transferred to COMSIP for the implementation of the livelihoods project. Livelihoods and Skills Development 1,146,639,543 1,512,980 Total charaed to CMSP (Category 2 & 3) 1,146,639,543 1,512,980 Add from previous years - Balance Carried forward 30 June 2019 1,146,639,543 1,512,980 17| P i ge Local capacity Enhancement (LACE) Resources under LACE relate to Unified Beneficiary Registry, Environmental & Social Safeguards, development and enrollment of the UBR 256.090,438 346,529 Disbursements to Local Capacity Enhanacement(LACE)(MASAF IV) Total charged to LACE (Categor 5) 256,090,438 346,529 Add from previous years 41,668,952 58,166 Balance Carried forward 30 June 2019 297,759,389 404,694 Project Man agent Payment of Project Staff salaries, operational costs, Monitoring and supervisions and anti corruption initiatives Project Management(MASAF IV) 962,447,801 1.314.946 Total charged to NISF (Category 5 962,447,801 1,314,946 Add from previous years 1,896,187 2,647 Balance Carried forward 30 June 2019 964,343,988 1,317,592 Grand Total for Sub Grant Investments 19,623,507,110 26,889,808 6.0 - Funding by Donors World Bank Drawin Kwacha US S Current year Grant D1480-MW 24,354,359,698 33,406-380 Credit 5922-NI W Sub Total 24,354,359,698 33,406,380 Previous Year Grant D1480-MW 2,903,167.918 4,052,553 Credit 5922-MW Total Credit/Grant 27,257,527,616 37,458,933 Total Drawings for Twelve months period to 30 June 2019 24,354,359,698 33,406,380 Total Drawings (Cumulative) as at 30 ,une 2019 for Credit/Grant 27,257,527,616 37,4 5 8 ,933 18 11 1 51 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) 7.0 - Fixed Assets MOTOR VEHICLES MK US s Balance B/Forward I July 2018 156,008,070 217,771 Additions during the year Disposals during the year Balance C/Down 30 June 2019 156,008,070 217,771 OFFICE EQUIPMENT MK USS Balance 13/Forward 1 July 2018 111,111,086 155.100 Additions during the year . Disposals during the year . Bahnce C/Down 30 June 2019 11.111,086 155,100 Total Movement for year Closing Balance as at 30 June 2019 267,119,156 372,871 8.0 Cash flow Statement The financial statements as at 30'] June 2018 do not include the Statement of Cash flow because the information contained in the Statement of Receipts and Payments is similar to that in the Cash Flow Statement due to the fact that 110 provisions have been made and does not contain cash equivalents. 19 Pa a:e 1�'A.TIONAII LOCAL Г�С}V�FIiYNIF1�'i` �'I�IAпC.']Ё CaM1VII'�"'7'�Е {NLGT�C') MASA�' 4- эТI�Т' 1 GTIIFNII'+(G SAFE'I"'4' NГТ SYSTEI���- SECOND AЛI)ITI(3i�iAL FI�iA1�rCZNG -CRE�}IT 5922 г�'I1�4f АNЛ G�A�rT D1480-?��V1' Al�fir�� 1: aI1SIG�}'ATF.,'Л АССС)U:цТ NI�V��1'IЕ-Л�;Т �(]R ТН� I'ERIUП Tf7 30 лтN� г�I} П>' С�н ❑еsсrьрtэагl СУ:[е'е L1SS U55 [3lleatirv�_, баlпnсе 1-.)и1_18 2,371,iT43:?i Fгrn 11 i sieг 1�ц i)pcn�atinьзs frпги i7�, [о Ни1д'пг�. Accaunt Гпг� д{�,П�� �� l'•r.}'гпспt [nstэгucriпn ti'п.9� 2пд lddi ��„ 1п-]ui-1�i 1"rдпsfcтs :гз71n [Пr't • iFR \�. 3 Се1л credi[ �7asaf4 sесахчд ддд. fиг -F1гпаСiеl� пn ?2 Au�;tise 2п[д ?Z-Aug-6E 17,7?g,g,5.9G Г'1уи1гиl1ггslгис[iгзл''iп.l6 Кдг•эn�adistтictcnuuei]s�I. t"г-Sер-Э3 3G5,91Jf�й7 I'а}�urcnt Ins#*ъгсliогlliа 14 С'lгiгадгиlи дi52:�[сl.ьоипсil чс4 l7-$п,Р-€$ ��`��'�7� 9 I'aylцcnt ЬгсЕгцсtiпп Nст, 14 \khutгd:criгг distric€ спlиlс:[ scc 1"-S><р-18 19�},93t7.�2 I'лу•игеп€lпsггисгiгуп 1•vп. 1 S Fluгds У'r �-�(..Г Actici.ties - I7пи•а, ti!tchisi nг Аиисрlгi 17-Sep-iЬ Gfi€7,9�2_ti9 PayiStan[]ns€пгсгiип Na. 19 LS@ ti ,, - �1;su ��.г _пилсil sct 17-5ер-1$ 747,62244 Лау7аъеп[ lэгs€гuclitru hмп. 11 Dедгл S`;Rh.a ��в}• diчtrcicccruneil l7-Se}7-i8 42.3,55G.G9 Р1}п?ъепС 1и5€пгсliсгг �сспшгt � 759,fq!} �[} ia•yanetrYlsчS[гисt�tiп Vu, дM1 !15 ..,.� 1-?уlау•-Эry Рд}•эггс.пг instruc?ieчit','�п. '.6 I�.en}`и S�:`��r�::�I [!t С�пъ'fI}1n1e�Yii 7-]иЕ]-Э4 С�772.:J� Раугtrепг instructiгrгr цо. 53 5S Сагчсиltтg L€д 7-Jгт-19 �,99n.fi£'i Теrип3i'ег Гrот t17А-IГК Vn. 7G д[71 C3[:гг1t :v1RS�3F �k 5сслпд Аг3с€. Finan.iu�+ - June 2(7€9 1€=!uiy-l9 �,�С�'. tб1.83 СздугlзеiаУ Cnsuuc¢inn'tiв. 5U iдеЕгl CnalsьEltirч� Busiпc�s С':rnsu€tiггR 2{3.1ги»-1 Э д$ i 1 г Uг} .�...... У[а}'гззегг! GгsЕаггсгiпп �о.51 [>+'i11ic Клс]гаkа if1-dun-]:) Ч,?]5.54 Г7'а.аl�Еаа� - Rccnu€зrnгггУ nf Operai€ltfй i�4tПd5 Уэа19г Пс�igп:гЕед 4(3i4,UП0.tЮ Рп}�пlегlt 1ns`[гасгiазг Nп. �18 hccnar¢и Sп i�3e;din,г Асес�.пгt 2п_]ип-19 ?G�f'_.�w� S' 5[1 T] alls fc] s f02 ffic MW th 0 C km e 9019 t-ii r II PaYIDICit Inslj uction Nn. 47 L993. M-71 35,777,423.56 29,678,605,76 Gosing 13.11-ance 6,098,817,80 Clusilig Rwe Exchange Di ff Pi t vi ou 5 veaVS Nct NIDAement for (lic eurrent vear ANNEX II - FUNDING TO COUNCILS PWP FUNDING TO COUNCIL FOR THE FINANCIAL YEAR 2018/19 PWP FUNDING TO COUNCIL FOR TRE FINANCIAL VEAR 2018/19 1 Additional 2nd Additional Total Vunding Number Council Financing Financing PWP l Balaka District Council 64,131,239 440,846,010 504.977,249 2 Blantvre District Council 41.737,410 286,908.210 328,645,620 31 Blantyre City Council 51,808,185 356,135,985 407,9443170 4 Chitipa District Council 230,400,814 0 230,400,814 5 Cliradzulu District Council 39,813,479 273,681,945 313,495,424 6 Chikwawa District Council 55,887,975 384,180,975 440,068,950 7 Delza District Council 501,624,144 0 501,624,144 8 Dowa District Council 39,993,443 274,920,525 314,913,968 9 Karonga District Council 55,279,923 355,804,223 411,084,146 10 Kasungu District Council 41,956,200 288,412,200 330,368,400 11 Kasungu Municipal Council 52,434,450 0 52,434,450 12 Likotna District Council 2,939,895 23,472,495 26,412,390 13 Lilongwe District Council 80,173.600 551,123,865 631,297,465 14 Lilongwe City Council 47,651,110 327,560,175 375,211,285 15 Lucheza Municipal Council 5,012,280 40,018,680 45,030,960 16 Mangochi District Council 65,189,768 448,122,687 513,312.455 17 Machinga District Council 518,151.420 0 518,151,420 18 Mangochi Town Council 89,952,450 14,916,450 104.868,900 19 Melinji District Council 37,068.792 254,815,718 291,884,510 20 Mulanje District Council 56,155,028 386,016,728 442,171,756 21 Mwanza District Council 8,663,760 69,172,560 77,836,320 22 Mzimba (M'mbelwa) District Council 54,642,803 375,621,503 430,264,306 23 Mzuzu City Council 26.104,433 193,017,533 219,121,966 24 Neno District Council 21,480,323 158,826,623 180,306,946 25 Nkhatabay District Council 4,000,000 234,392,088 238,392,088 26 Nkhotakota District Council 43,259,288 297,369,788 340.629,076 27 Nsanje District Council 48,326,850 332.204850 380,53 1,700 28 Ntchisi District Council 15,589,299 202,370,805 217,960,097 29 Ntcheu District Council 41,969,134 288,500,670 330,469,804 30 Phalombe District Council 43,024,410 296,755,210 339,779,620 31 Rumphi District Council 27,057,701 200,066,051 227,123,752 32 Salina District Council 5 19,139,562 0 5 19,139,562 33 Thyolo District Council 66,875,738 459,712,238 526,587.976 34 Zomba District Council 128,735,827 342,343,295 471,079,122 35 Zonba City Council 26,059,039 192,681,889 218,740,928 'Total 3,152,289,764 8,349,971,974 11,502,261,739 221 , a 므 23 l P 搜 g c