CARIBBEAN TELECOMMUNICATIONS UNION CARIBBEAN REGIONAL COMMUNICATIONS INFRASTRUCTURE PROGRAM (CARCIP) GRANT NO. H772-6R 31 JULY 2018 CARIBBEAN TELECOMMUNICATIONS UNION CARIBBEAN REGIONAL COMMUNICATIONS INFRASTRUCTURE PROGRAM (CARCIP) GRANT NO. H772-6R TABLE OF CONTENTS INDEPENDENT AUDITORS’ OPINION ..................................................................................... 1 STATEMENT OF SOURCES AND USES OF FUNDS ............................................................... 4 STATEMENT OF CUMULATIVE INVESTMENTS .................................................................. 5 NOTES TO THE FINANCIAL STATEMENTS ........................................................................... 6 DESIGNATED ACCOUNT RECONCILIATION STATEMENT ............................................. 19 RECONCILIATION OF THE DESIGNATED BANK ACCOUNT TO THE STATEMENT OF SOURCES AND USES OF FUNDS 31 JULY 2018 ..................... 20 SCHEDULE OF WITHDRAWAL APPLICATIONS ................................................................. 21 INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE W ITH THE FINANCING AGREEMENT .............................................................................................. 22 REPORT ON AGREED-UPON PROCEDURES ON USES OF FUNDS .................................. 23 LIST OF STATEMENT OF DISBURSEMENT REQUESTS ISSUED TO THE IDA .............. 26 LETTER OF REPRESENTATION.............................................................................................. 28 I NDEPENDENT AUDI TORS’ OPI NI ON To: Project Coordinating Unit Caribbean Telecommunications Union Caribbean Telecommunications Union Caribbean Regional Communications Infrastructure Program (CARCIP) The International Development Association (IDA) Grant No. H772-6R Opinion We have audited the accompanying financial statements of the Caribbean Telecommunications Union - Caribbean Regional Communications Infrastructure Program (CARCIP) IDA Grant No. H772-6R executed by the Program Coordinating Unit, Caribbean Telecommunications Union and financed with funds from the International Development Association Grant No. H772-6R, which comprises the Statement of Sources and Uses of Funds and the Statement of Cumulative Investments for the thirteen-month period from 1 July 2017 to 31 July 2018, and a summary of significant accounting policies. In our opinion, the financial statements referred to above, present fairly in all material respects the Sources and Uses of Funds and Cumulative Investments of the Caribbean Telecommunications Union - Caribbean Regional Communications Infrastructure Program (CARCIP) IDA Grant No. H772-6R executed by Caribbean Telecommunications Union as at and for the thirteen-month period ended 31 July 2018, in accordance with World Bank Financial Management Practices in World Bank Financial Investment Operations. Basis for Opinion We conducted our audit in accordance with International Standards on Auditing (“ISAs”). Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Program in accordance with the International Ethics Standards Board for Accountants’ Code of Ethic s for Professional Accountants (“IESBA Code”), and we have fulfilled our other ethical responsibilities in accordance with the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Telephone: (868) 235-5063 Address: 111 Eleventh Street, Barataria, Trinidad, West Indies Mailing Address: PO Box 10205, Eastern Main Road, San Juan Partners: Renée-Lisa Philip Mark K. Superville 1. INDEPENDENT AUDI TORS’ REPORT (CONT’D) Emphasis of Matter We draw attention to Note 2 to the financial statements, which describes the basis of preparation of the financial statements. As described in Note 2 (a) iii, no provision has been made for depreciation. This is not in conformity with International Public Sector Accounting Standard No. 17 – Property, Plant and Equipment and therefore is not in conformity with World Bank Financial Management Practices in World Bank Financial Investment Operations, Statements of Sources and Uses of Funds do not traditionally incorporate depreciation as a use of funds. Nonetheless, it is the practice when accounts are prepared using the cash basis. Additionally, International Public Sector Accounting Standard No. 1 – Presentation of Financial Statements require financial statements to be prepared on a going concern basis. Because the Caribbean Telecommunications Union - Caribbean Regional Communications Infrastructure Program (CARCIP) IDA Grant No. H772-6R executed by the Program Coordinating Unit is a finite program (to be implemented over a five (5) year period), the going concern basis of accounting is not relevant to the preparation and fair presentation of these financial statements. Our opinion is not modified in respect of these matters. Responsibilities of the Program Coordinating Unit, Caribbean Telecommunications Union for the Financial Statements The Program Coordinating Unit, Caribbean Telecommunications Union is responsible for the preparation and fair presentation of the financial statements in accordance with World Bank Financial Management Practices in World Bank Financial Investment Operations and for such internal control as the Program Coordinating Unit determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ Responsibilities for the Audit of the Financial Statements Our 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 auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs 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 financial statements. 2. CARIBBEAN TELECOMMUNICATIONS UNION CARIBBEAN REGIONAL COMMUNICATIONS INFRASTRUCTURE PROGRAM GRANT NO. H772-6R STATEMENT OF CUMULATIVE INVESTMENTS for the thirteen-month period from 1 July 2017 to 31 July 2018 (Expressed in United States Dollars) Current Year Prior Year Current Period Cumulative for the Cumulative Period 1 July 2017 to Period Ended Ended 31 July 2018 31 July 2018 30 June 2017 Categories US$ US$ US$ Actual Actual Actual Category 1 - 608,224 608,224 Category 2 - 127,422 127,422 Category 3 - 556,214 556,214 Category 4 522,572 1,329,763 807,191 Total Expenditure 522,572 2,621,623 2,099,051 Other Expenses 5,654 23,776 18,122 Grand Total 528,226 2,645,399 2,117,173 Other Expenses: (Gain)/loss on foreign exchange (1,582) 3,174 4,756 Bank charges net of interest received 883 3,604 2,721 Penalties and interest 2,786 4,973 2,187 Vat expenses 3,567 12,025 8,458 5,654 23,776 18,122 Effective September 2016, the World Bank, having reviewed the performance of the Program agreed to accumulate further expenditure under the above categories, into a new Category 4. (The accompanying notes form part of these financial statements) 5. CARIBBEAN TELECOMMUNICATIONS UNION CARIBBEAN REGIONAL COMMUNICATIONS INFRASTRUCTURE PROGRAM GRANT NO. H772-6R NOTES TO THE FINANCIAL STATEMENTS (Expressed in United States Dollars) 31 July 2018 1. Description of Program: On 26 June 2012, the Caribbean Telecommunications Union (CTU) signed Grant No. H772-6R with the International Development Association (IDA) of the World Bank to finance the Caribbean Regional Communications Infrastructure Program (CARCIP). The Program’s effective start date was 15 April 2013 and the total grant was US$3,000,000. The Caribbean Telecommunications Union (CTU) is the Project Coordinating Unit (PCU) for the Program with specific responsibility for planning and coordinating program activities. The Information Communications Technology (ICT) sector in the Caribbean faces many challenges such as highly fragmented markets and uneven distribution of resources. To mitigate these challenges, the Caribbean Community (CARICOM) developed a Regional Digital Development Strategy (RDDS), aimed at harmonising efforts towards fast- tracking the formation of a CARICOM Information Society by 2019. RDDS is also intended to address key policy and regulatory bottlenecks which constrain the use of ICT to stimulate growth in the CARICOM region. The key objectives of the Strategy are to: (a) establish a modern, regional, regulatory and open telecommunications infrastructure with affordable networks using converged technologies; (b) build a digital community culture and increase the value and volume of the region’s trained ICT workforce; (c) use ICT to demonstrate good governance and increase efficiency in operations; (d) establish a culture of innovation and quality, and enable sustainable production of regional digital goods and services; and (e) guide businesses and governments to use ICT for sustainable growth and support social development objectives through partnerships. 6. CARIBBEAN TELECOMMUNICATIONS UNION CARIBBEAN REGIONAL COMMUNICATIONS INFRASTRUCTURE PROGRAM GRANT NO. H772-6R NOTES TO THE FINANCIAL STATEMENTS (Expressed in United States Dollars) 31 July 2018 1. Description of Program (Cont’d): Having recognized the many challenges faced by the ICT Sector in the Caribbean including policy and regulatory bottlenecks, the IDA of the World Bank and stakeholders within the region designed CARCIP. The participants in this program are St. Vincent and the Grenadines, Grenada and St. Lucia. The Program supports a regional approach toward addressing the challenges through a holistic ICT-enabled development framework, strongly anchored in CARICOM’s regional ICT agenda. The main objective of the program is to increase access to broadband networks, and advance the development of an ICT-enabled services industry in the Caribbean. The Program has three components to be implemented concurrently: (a) Support for regional connectivity infrastructure. This component includes support for developing: (i) physical connectivity infrastructure, and (ii) policy, legal, regulatory and institutional support. (b) ICT-led innovation through activities that will leverage the regional broadband infrastructure to foster growth of the regional Information Technology/ Information Technology Enabled Services (ITES). (c) Implementation support that encompasses institutional and capacity building, as well as monitoring and evaluation. 7. CARIBBEAN TELECOMMUNICATIONS UNION CARIBBEAN REGIONAL COMMUNICATIONS INFRASTRUCTURE PROGRAM GRANT NO. H772-6R NOTES TO THE FINANCIAL STATEMENTS (Expressed in United States Dollars) 31 July 2018 2. Significant Accounting Policies: (a) Basis of preparation - (i) The financial statements have been prepared in accordance with World Bank Financial Management Practices in World Bank Financial Investment Operations. (ii) The Statement of Sources and Uses of Funds have been prepared on a cash basis. The cash basis is a comprehensive basis of accounting which does not take into consideration accruals of receipts or expenses not yet paid. On this basis, Grant disbursements are recognised when received and expenses are recognised when paid. This basis is in conformity with World Bank Financial Management Practices in World Bank Financial Investment Operations, which comply with International Public Sector Accounting Standards. (iii) No account has been taken of depreciation on fixed assets. This basis of accounting is not in conformity with International Public Sector Accounting Standard No. 17 - Property, Plant and Equipment and therefore is not in conformity with World Bank Financial Management Practices in World Bank Financial Investment Operations. Nonetheless, it is in keeping with the cash basis of accounting as described in Note 2 (a) (ii). (iv) Cash disbursements and costs incurred have been presented in conformity with the cost budget allocation contained in Annex (A) of the contract between the CTU and the IDA. (v) Funding is recognised on a cash basis. 8. CARIBBEAN TELECOMMUNICATIONS UNION CARIBBEAN REGIONAL COMMUNICATIONS INFRASTRUCTURE PROGRAM GRANT NO. H772-6R NOTES TO THE FINANCIAL STATEMENTS (Expressed in United States Dollars) 31 July 2018 2. Significant Accounting Policies (Cont’d): (b) Foreign currency translation - (i) All receipts other than in the reporting currency have been translated at the rate of exchange of Trinidad and Tobago dollar of $6.60. (ii) All payments other than those in the reporting currency have been translated at the rate of exchange of Trinidad and Tobago dollar of $6.60. (iii) Transfers from the US Dollar Account to the TT Dollar Account are recorded at the banks buying rate on the day of the transfer. (iv) Payments under contracts, which state an agreed rate of exchange, uses that rate to record the transactions and to report the expenditures in the reporting currency. (v) The World Bank’s policy is that expenditures should be recorded at the same rate at which transfers are made from the US Dollar Account to the TT Dollar Account. (c) Reporting Currency - These financial statements are presented in United States dollars. The financial statements are maintained by the PCU in Trinidad and Tobago dollars. Conversion into United States dollars is done in accordance with the procedures indicated in Note 2 (b) above. 9. CARIBBEAN TELECOMMUNICATIONS UNION CARIBBEAN REGIONAL COMMUNICATIONS INFRASTRUCTURE PROGRAM GRANT NO. H772-6R NOTES TO THE FINANCIAL STATEMENTS (Expressed in United States Dollars) 31 July 2018 3. Disbursement Period: The period for final disbursement of the Grant resources shall expire three (3) years and ten (10) months from the effective date of the Grant. The final date of disbursement was 1 February 2017. During the current period the final disbursement date as agreed with the World Bank was changed from 1 August 2018 to 28 February 2019. 4. Funding: The funding for the Program is allocated as follows: US$ The Caribbean Telecommunications Union 1,500,000 Eastern Caribbean Telecommunications Authority 600,000 Caribbean Knowledge and Learning Network 900,000 3,000,000 US$ Component 1 Regional Connectivity Infrastructure 1,500,000 Component 2 ICT – Led Innovation 600,000 Component 3 Implementation support – Incremental Operating Cost 900,000 3,000,000 10. CARIBBEAN TELECOMMUNICATIONS UNION CARIBBEAN REGIONAL COMMUNICATIONS INFRASTRUCTURE PROGRAM GRANT NO. H772-6R NOTES TO THE FINANCIAL STATEMENTS (Expressed in United States Dollars) 31 July 2018 5. Cash and Bank: 31 July 30 June 2018 2017 US$ US$ Cash on Hand TTD 15 15 Cash on Hand USD 2,633 925 RBC Royal Bank TTD 2,843 2,153 RBC Royal Bank USD 34,194 184,818 39,685 187,911 6. Financing: Commitment charges on the un-withdrawn financing balance of the Grant become due and payable semi-annually on 15 February and 15 August each year. As per the agreement, these charges shall be a half of one percent (1/2%) per annum, at the discretion of the World Bank. 11. CARIBBEAN TELECOMMUNICATIONS UNION CARIBBEAN REGIONAL COMMUNICATIONS INFRASTRUCTURE PROGRAM GRANT NO. H772-6R NOTES TO THE FINANCIAL STATEMENTS (Expressed in United States Dollars) 31 July 2018 7. Disbursements: The following represents disbursements executed as at 31 July 2018: Disbursements to Disbursements in Disbursements to 30 June 2017 period 31 July 2018 US$ US$ US$ CONTRACTS Regional Connectivity Infrastructure 1,175,951 345,841 1,521,792 ICT-Led Innovation 150,493 23,388 173,881 Implementation Support 772,607 153,343 925,950 Total disbursements 2,099,051 522,572 2,621,623 Other Expenses 18,122 5,654 23,776 Total 2,117,173 528,226 2,645,399 Analysis of Other Expenses: (Gain)/loss on Foreign exchange 4,756 (1,582) 3,174 Bank charges Net of Interest received 2,721 883 3,604 Penalties and Interest 2,187 2,786 4,973 Vat expenses 8,458 3,567 12,025 Total 18,122 5,654 23,776 12. CARIBBEAN TELECOMMUNICATIONS UNION CARIBBEAN REGIONAL COMMUNICATIONS INFRASTRUCTURE PROGRAM GRANT NO. H772-6R NOTES TO THE FINANCIAL STATEMENTS (Expressed in United States Dollars) 31 July 2018 7. Disbursements (Cont’d): The following are the disbursements executed as at 30 June 2017: Disbursements to Disbursements in Disbursements to 1 January 2016 period 30 June 2017 US$ US$ US$ CONTRACTS Regional Connectivity Infrastructure 604,920 571,031 1,175,951 ICT-Led Innovation 111,513 38,980 150,493 Implementation Support 575,427 197,180 772,607 1,291,860 807,191 2,099,051 OTHER 9,078 9,044 18,122 Total 1,300,938 816,235 2,117,173 Analysis of Other Expenses: (Gain)/loss on Foreign exchange (2,841) 7,597 4,756 Bank charges Net of Interest received 2,103 618 2,721 Penalties and Interest 1,972 215 2,187 Vat expenses 7,844 614 8,458 Total 9,078 9,044 18,122 13. CARIBBEAN TELECOMMUNICATIONS UNION CARIBBEAN REGIONAL COMMUNICATIONS INFRASTRUCTURE PROGRAM GRANT NO. H772-6R NOTES TO THE FINANCIAL STATEMENTS (Expressed in United States Dollars) 31 July 2018 8. Commitments: The following is a status of the contract commitments which were in execution as at 31 July 2018: \\ \\ Terminated Terminated \\ Contracts New Contracts \\ Disbursed Disbursed \\ Balance Balance \\ as at Contracts as at \\ as at as at \\ as at as at \\ 1 July in the 31 July \\ 1 July Disbursement 31 July \\ 1 July Terminations 31 July \\ Committed 2017 period 2018 \\ 2017 in period 2018 \\ 2017 in period 2018 \\ Amount US$ US$ US$ \\ US$ US$ US$ \\ US$ US$ US$ \\ US$ Regional Connectivity \\ \\ \\ Infrastructure 1,482,500 107,514 1,590,014 \\ 947,664 299,964 1,247,628 \\ 175,600 - 175,600 \\ 166,786 \\ \\ \\ ICT-Led \\ \\ \\ Innovation 49,846 - 49,846 \\ 36,434 10,896 47,330 \\ - 2,516 2,516 \\ - \\ \\ \\ Implementation \\ \\ \\ Support 727,375 147,476 874,851 \\ 612,363 166,078 778,441 \\ 46,164 - 46,164 \\ 50,246 \\ \\ \\ Total 2,259,721 254,990 2,514,711 \\ 1,596,461 476,938 2,073,399 \\ 221,764 2,516 224,280 \\ 217,032 14. CARIBBEAN TELECOMMUNICATIONS UNION CARIBBEAN REGIONAL COMMUNICATIONS INFRASTRUCTURE PROGRAM GRANT NO. H772-6R NOTES TO THE FINANCIAL STATEMENTS (Expressed in United States Dollars) 31 July 2018 8. Commitments (Cont’d): The following is a status of the contract commitments which were in execution as at 30 June 2017: \\ \\ Terminated Terminated \\ Contracts Contracts \\ Disbursed Disbursed \\ Balance Balance \\ as at New as at \\ as at as at \\ as at as at \\ 1 Contracts 30 June \\ 1 January Disbursed 30 June \\ 1 January Terminations 30 June \\ Committed January in period 2017 \\ 2016 in period 2017 \\ 2016 in period 2017 \\ Amount 2016 US$ US$ \\ US$ US$ US$ \\ US$ US$ US$ \\ US$ US$ Regional Connectivity \\ \\ \\ Infrastructure 1,085,145 397,355 1,482,500 \\ 490,462 457,202 947,664 \\ 175,600 - 175,600 \\ 359,236 \\ \\ \\ ICT-Led \\ \\ \\ Innovation - 49,846 49,846 \\ - 36,434 36,434 \\ - - - \\ 13,412 \\ \\ \\ Implementation \\ \\ \\ Support 537,501 189,874 727,375 \\ 424,904 187,459 612,363 \\ - 46,164 46,164 \\ 68,848 \\ \\ \\ Total 1,622,646 637,075 2,259,721 \\ 915,366 681,095 1,596,461 \\ 175,600 46,164 221,764 \\ 441,496 15. CARIBBEAN TELECOMMUNICATIONS UNION CARIBBEAN REGIONAL COMMUNICATIONS INFRASTRUCTURE PROGRAM GRANT NO. H772-6R NOTES TO THE FINANCIAL STATEMENTS (Expressed in United States Dollars) 31 July 2018 9. Direct Payments Made by IDA: There were no direct payments made by the IDA during the period under review. 10. Fixed Assets: Fixed assets are stated at cost and no depreciation is charged. Although this is not in accordance with International Public Sector Accounting Standard No. 17 – Property, Plant and Equipment and therefore is not in conformity with World Bank Financial Management Practices in World Bank Financial Investment Operations, it is the practice when accounts are prepared using the cash basis as described in Note 2(a). Assets purchased during the period reported (Value Added Tax inclusive) are given below: 31 July 30 June 2018 2017 $US $US Computer Equipment 4,012 5,451 Furniture and Fittings 8,829 8,829 12,841 14,280 16. CARIBBEAN TELECOMMUNICATIONS UNION CARIBBEAN REGIONAL COMMUNICATIONS INFRASTRUCTURE PROGRAM GRANT NO. H772-6R NOTES TO THE FINANCIAL STATEMENTS (Expressed in United States Dollars) 31 July 2018 10. Fixed Assets: LISTING AS AT 31 JULY 2018 INVOICE CHQ DATE DESCRIPTION COST # # COMPUTER & EQUIPMENT 28-Jun-13 MB - Item: 060-WDBACW0030 - EXT HARD DRIVE, MY BOOIK 3TB USB 32880 139 198 28-Jun-13 MB - Item: 240-2344-BNU - 3 LAPTOP THINKPAD T430: Lenovo think pad SN: PB-7K9LV 32880 139 1,439 28-Jun-13 MB - Item: 240-3698-4RU - 2 LAPTOP THINKPAD HELIX: LTH (convertible)SN: R9-YYKH0 32880 139 2,375 4,012 FURNITURE AND FITTINGS 26-Apr-13 BEI - 4 DRAWER F/CAB, GREY:CUBBY F1304378 126 256 26-Apr-13 BEI - BRIDGE, 42"X20":PC F1304378 126 107 26-Apr-13 BEI - CREDENZA SHELL 72"X20":PC F1304378 126 213 26-Apr-13 BEI - DERBY LEATHER EXEC CHAIR, BLK-PC F1304378 126 362 26-Apr-13 BEI - DESK SHELL, 60"X30":PS, FMS, M&E F1304378 126 660 26-Apr-13 BEI - DESK SHELL, BOW 72"X36"/42":PC F1304378 126 296 26-Apr-13 BEI - HUTCH DOORS SOLID W72":PC F1304378 126 1,254 26-Apr-13 BEI - MULTIFUNCTIONAL CHAIR, FABRIC-PS F1304378 126 333 26-Apr-13 BEI - PALERMO LEATHER EXEC CHAIR-SW F1304378 126 362 26-Apr-13 BEI - PALERMO LEATHER EXEC CHAIR-TP F1304378 126 362 26-Apr-13 BEI - PEDESTAL, B/B/F 16"X19"-PC F1304378 126 220 26-Apr-13 BEI - PEDESTAL, B/B/F, 16"X19":PC F1304378 126 220 26-Apr-13 BEI - PEDESTAL, B/B/F, 16"X19":PS, FMS, M&E F1304378 126 660 26-Apr-13 BEI - RETURN, REVERSIBLE, 42"X20":PS, FMS, M&E F1304378 126 382 26-Apr-13 BEI - ROUND TABLE 42": BOARD ROOM F1304378 126 166 13-Jun-13 BEI - MULTIFUNCTIONAL CHAIR, FABRIC, MARINE COLOUR F1306972 134 998 13-Jun-13 BEI - NOVA OP CHAIR, BLK MESH/FABRIC F1306972 134 899 26-Jul-13 BEI - 6FEET METAL FILING CABINET-GREY F1307480 144 269 26-Jul-13 BEI - BANKER'S LAMP 12WT/60WT F1307480 144 471 30-Jul-13 THE OFFICE AUTHORITY - ELECTRIC 3 HOLE PUNCH I067882 145 111 30-Jan-14 THE OFFICE AUTHORITY - FLIP CHART EASEL I085502 172 228 8,829 12,841 Total BEI - BUSINESS EQUIPMENT INTERIORS MB - MEMORY BANK LTH - Lenovo ThinkPad Helix ALL PURCHASES WERE MADE IN ACCORDANCE WITH THE WORLD BANK'S PROCUREMENT GUIDELINES. 17. CARIBBEAN TELECOMMUNICATIONS UNION CARIBBEAN REGIONAL COMMUNICATIONS INFRASTRUCTURE PROGRAM GRANT NO. H772-6R NOTES TO THE FINANCIAL STATEMENTS (Expressed in United States Dollars) 31 July 2018 10. Fixed Assets (Cont’d): LISTING AS AT 30 JUNE 2017 INVOICE CHQ DATE DESCRIPTION COST # # COMPUTER & EQUIPMENT 28-Jun-13 MB - Item: 060-WDBACW0030 - EXT HARD DRIVE, MY BOOIK 3TB USB 32880 139 198 28-Jun-13 MB - Item: 240-2344-BNU - 3 LAPTOP THINKPAD T430: Lenovo think pad SN: PB-7K9LV 32880 139 1,439 Lenovo think pad SN: PB-7M6DB 32880 139 1,439 28-Jun-13 MB - Item: 240-3698-4RU - 2 LAPTOP THINKPAD HELIX: LTH (convertible) SN: R9-YYKHO 32880 139 2,375 5,451 FURNITURE AND FITTINGS 26-Apr-13 BEI - 4 DRAWER F/CAB, GREY:CUBBY F1304378 126 256 26-Apr-13 BEI - BRIDGE, 42"X20":PC F1304378 126 107 26-Apr-13 BEI - CREDENZA SHELL 72"X20":PC F1304378 126 213 26-Apr-13 BEI - DERBY LEATHER EXEC CHAIR, BLK-PC F1304378 126 362 26-Apr-13 BEI - DESK SHELL, 60"X30":PS, FMS, M&E F1304378 126 660 26-Apr-13 BEI - DESK SHELL, BOW 72"X36"/42":PC F1304378 126 296 26-Apr-13 BEI - HUTCH DOORS SOLID W72":PC F1304378 126 1,254 26-Apr-13 BEI - MULTIFUNCTIONAL CHAIR, FABRIC-PS F1304378 126 333 26-Apr-13 BEI - PALERMO LEATHER EXEC CHAIR-SW F1304378 126 362 26-Apr-13 BEI - PALERMO LEATHER EXEC CHAIR-TP F1304378 126 362 26-Apr-13 BEI - PEDESTAL, B/B/F 16"X19"-PC F1304378 126 220 26-Apr-13 BEI - PEDESTAL, B/B/F, 16"X19":PC F1304378 126 220 26-Apr-13 BEI - PEDESTAL, B/B/F, 16"X19":PS, FMS, M&E F1304378 126 660 26-Apr-13 BEI - RETURN, REVERSIBLE, 42"X20":PS, FMS, M&E F1304378 126 382 26-Apr-13 BEI - ROUND TABLE 42": BOARD ROOM F1304378 126 166 13-Jun-13 BEI - MULTIFUNCTIONAL CHAIR, FABRIC, MARINE COLOUR F1306972 134 998 13-Jun-13 BEI - NOVA OP CHAIR, BLK MESH/FABRIC F1306972 134 899 26-Jul-13 BEI - 6FEET METAL FILING CABINET-GREY F1307480 144 269 26-Jul-13 BEI - BANKER'S LAMP 12WT/60WT F1307480 144 471 30-Jul-13 THE OFFICE AUTHORITY - ELECTRIC 3 HOLE PUNCH I067882 145 111 30-Jan-14 THE OFFICE AUTHORITY - FLIP CHART EASEL I085502 172 228 8,829 14,280 Total BEI - BUSINESS EQUIPMENT INTERIORS MB - MEMORY BANK LTH - Lenovo ThinkPad Helix ALL PRCHASES WERE MADE IN ACCORDANCE WITH THE WORLD BANK'S PROCUREMENT GUIDELINES. 18. CARIBBEAN TELECOMMUNICATIONS UNION CARIBBEAN REGIONAL COMMUNICATIONS INFRASTRUCTURE PROGRAM GRANT NO. H772-6R RECONCILIATION OF THE DESIGNATED BANK ACCOUNT TO THE STATEMENT OF SOURCES AND USES OF FUNDS (Expressed in United States Dollars) 31 July 2018 Thirteen-month Eighteen-month period ended period ended 31 July 2018 30 June 2017 ($) ($) Designated Bank Account Balance 34,194 184,818 Net cash available per Statement of Sources and Uses of Funds 34,194 184,818 20. CARIBBEAN TELECOMMUNICATIONS UNION CARIBBEAN REGIONAL COMMUNICATIONS INFRASTRUCTURE PROGRAM GRANT NO. H772-6R SCHEDULE OF WITHDRAWAL APPLICATIONS (Expressed in United States Dollars) 31 July 2018 Amount Justification Paid Justification Date Value Date Applied Submitted Amount Approved Received Date Closed 480,000 - 480,000 - 27-May-13 03-Jun-13 03-Jun-13 - 373,382 - 373,382 05-Jun-14 27-Jun-14 27-Jun-14 375,000 - 375,000 - 14-Jul-14 13-Aug-14 13-Aug-14 - 238,534 - 238,534 22-Jun-15 7-Jul-15 7-Jul-15 243,084 - 243,084 - 17-Jul-15 23-Jul-15 23-Jul-15 - 428,811 - 428,811 16-Oct-15 19-Oct-15 19-Oct-15 450,000 - 450,000 - 16-Oct-15 21-Oct-15 21-Oct-15 - 335,363 - 335,363 16-May-16 21-May-16 21-May-16 257,000 - 257,000 - 16-Jun-16 22-Jun-16 22-Jun-16 - 338,749 - 338,749 19-Dec-16 21-Dec-16 21-Dec-16 500,000 - 500,000 - 19-Dec-16 21-Dec-16 21-Dec-16 - 389,328 - 389,328 18-Aug-17 19-Sept-17 19-Sept-17 250,000 - 250,000 - 24-Oct-17 27-Oct-17 27-Oct-17 - 246,889 - 246,889 9-Apr-18 18-Apr-18 18-Apr-18 130,000 - 130,000 - 2,685,084 2,351,056 2,685,084 2,351,056 21. I NDEPENDENT AUDI TORS’ REPORT ON COM PLI ANCE WI TH THE FINANCING AGREEMENT AND APPLICABLE LAWS AND REGULATIONS To: Project Coordinating Unit Caribbean Telecommunications Union Caribbean Telecommunications Union Caribbean Regional Communications Infrastructure Program (CARCIP) The International Development Association (IDA) Grant No. H772-6R We have audited the financial statements of the Caribbean Telecommunications Union - Caribbean Regional Communications Infrastructure Program (CARCIP) IDA Grant No. H772-6R executed by the Program Coordinating Unit, Caribbean Telecommunications Union and financed with funds from the International Development Association Grant No. H772-6R, which comprise the Statement of Sources and Uses of Funds, Statement of Cumulative Investments and Designated Account Reconciliation Statement for the thirteen-month period from 1 July 2017 to 31 July 2018, and summary of significant accounting policies. These statements are the responsibility of the Project Coordinating Unit, Caribbean Telecommunications Union, and we have issued our report thereon dated 28 November 2018. In relation to our audit, we determined compliance with the Financing Agreement, and the provisions established in the Program’s Implementation Manual of Grant Contract No. H772 -6R as of 31 July 2018. We planned and performed the audit to obtain reasonable assurance that the Caribbean Telecommunications Union - CARCIP Program complied with the pertinent Grant contractual clauses, applicable laws and regulations, and the provisions contained in the Program’s Financing Agreement and Implementation Manual. The audit includes examining, on a test basis, the appropriate evidence. We believe that our audit provides a reasonable basis for our opinion. Nothing has come to the attention of the auditors to suggest non-compliance or any other violations on the part of the Project Coordinating Unit, Caribbean Telecommunications Union, with respect to Program’s Financing Agreement and Implementation Manual and Applicable Laws and Regulations. Barataria Trinidad and Tobago 28 November 2018 Telephone: (868) 235-5063 Address: 111 Eleventh Street, Barataria, Trinidad, West Indies Mailing Address: PO Box 10205, Eastern Main Road, San Juan Partners: Renée-Lisa Philip, Mark K. Superville 22. REPORT ON AGREED-UPON PROCEDURES ON USES OF FUNDS To: Program Coordinating Unit Caribbean Telecommunications Union Caribbean Telecommunications Union Caribbean Regional Communications Infrastructure Program (CARCIP) The International Development Association (IDA) Grant No. H772-6R We have performed the procedures agreed with you that are enumerated below with respect to two (2) disbursement requests made to the IDA by the Project Coordinating Unit – Caribbean Telecommunications Union - CARCIP Program IDB Grant No. H772-6R made during the thirteen- month period from 1 July 2017 to 31 July 2018 and set forth in the accompanying annex. Our engagement was undertaken in accordance with the International Standard on Related Services applicable to agreed–upon procedures engagements. The procedures were performed solely to assist you in evaluating the validity of the two (2) disbursement requests and are summarised as follows: 1. We obtained and checked the date, use and amount of the disbursement requests against the Project Coordinating Unit’s records. 2. We verified for each payment, the existence of appropriate supporting documentation in accordance with the procurement procedures. 3. We verified the receipt of payments by the intended recipients, and evidence of such outlays in the Project Coordinating Unit’s accounting records. 4. We reviewed the payments for the procurement of goods other than works, to verify compliance with internal control policies. 5. We reviewed each expense for eligibility based on the Eligibility of Expenditure in World Bank Lending. Telephone: (868) 235-5063 Address: 111 Eleventh Street, Barataria, Trinidad, West Indies Mailing Address: PO Box 10205, Eastern Main Road, San Juan Partners: Renée-Lisa Philip, Mark K. Superville 23. REPORT ON AGREED-UPON PROCEDURES ON USES OF FUNDS (CONTINUED) We report our findings below: a. With respect to procedure 1, disbursements were properly recorded in the accounting records, in terms of date, use and amount. b. With respect to procedure 2, there was appropriate supporting documentation in accordance with the procurement and internal control policies and procedures. c. With respect to procedure 3, all payments were received by beneficiaries and there was evidence of such outlays in the Project Coordinating Unit’s accounting records. d. With respect to procedure 4, the procurement of goods other than services was in compliance with internal control policies. e. With respect to procedure 5, the expenses reviewed for the period were eligible based on the Eligibility of Expenditure in World Bank Lending. Because the above procedures do not constitute either an audit or a review made in accordance with International Standards on Auditing or International Standards on Review Engagements, we do not express any assurance on the Disbursement Requests as set forth in the accompanying annex, or on the disbursements taken individually or as a whole. Had we performed additional procedures or had we performed an audit or review in accordance with International Standards on Auditing or International Standards on Review Engagements, other matters might have come to our attention that would have been reported to you. Our report is solely for the purpose set forth in the first paragraph of this report and for your information and is not to be used for any other purpose or to be distributed to any other parties. This report relates only to the Disbursement Requests included in the accompanying annex and does not extend to the financial statements of the Caribbean Telecommunications Union - Caribbean Regional Communications Infrastructure Program (CARCIP) IDA Grant No. H772-6R taken as a whole. Barataria Trinidad and Tobago 28 November 2018 24. CARIBBEAN TELECOMMUNICATIONS UNION CARIBBEAN REGIONAL COMMUNICATIONS INFRASTRUCTURE PROGRAM GRANT NO. H772-6R ANNEX (Expressed in United States Dollars) List of Disbursement Requests issued during the period 1 July 2017 to 31 July 2018 REQUEST NO. REQUEST AMOUNT AMOUNT AMOUNT DISALLOWED RECORDED IN GL 6 389,328 - 389,328 7 246,889 - 246,889 List of Disbursement Requests issued during the period 1 January 2016 to 30 June 2017 REQUEST NO. REQUEST AMOUNT AMOUNT AMOUNT DISALLOWED RECORDED IN GL 4 335,363 - 335,363 5 338,749 - 338,749 25. CARIBBEAN TELECOMMUNICATIONS UNION CARIBBEAN REGIONAL COMMUNICATIONS INFRASTRUCTURE PROGRAM GRANT NO. H772-6R LIST OF STATEMENT OF DISBURSEMENT REQUESTS ISSUED TO THE IDA (Expressed in United States Dollars) List of Disbursement Requests issued as at 31 July 2018 REQUEST AMOUNT AMOUNT REQUEST NO. AMOUNT DISALLOWED RECORDED IN GL 1 388,574 (15,192) 373,382 2 238,534 - 238,534 3 428,811 - 428,811 4 335,363 - 335,363 5 338,749 - 338,749 6 389,328 - 389,328 7 246,889 - 246,889 List of Disbursement Requests issued as at 30 June 2017 REQUEST AMOUNT AMOUNT REQUEST NO. AMOUNT DISALLOWED RECORDED IN GL 1 388,574 (15,192) 373,382 2 238,534 - 238,534 3 428,811 - 428,811 4 335,363 - 335,363 5 338,749 - 338,749 26.