NATIONAL AUDIT OFFICE FFP/AGL/C/FA/MOPJi40 08 P 19 My No. You No Secretary, 2 Ministry of Primary Industri s d Report of the Auditor General on the Financial Statements of the Agriculture Sector Modernization Project - Part 01 for the year ended 31 December 2018 The English version of the above mentioned report is sent herewith along with a copy of the financial statements certified. W.P.C. Wickramaratne Auditor General Copies to :- 01. Secretary, Ministry of Finance 02. Project Director, Agriculture Sector Modernization Project - Part 01 03. Senior Financial Management Specialist, International Development Association- for information go 3o,72, 0J'J' rod aw . e a s 306/72. GudgrrM 00n, u QprO ro No. 306/72.Poldtiva Road, Battaramtillia. Si Lanka. +94 II 2 88 70 28 - 34 +94 11 2 88 72 23 ag@auditorgenera.gov.1k www. nost govik NATIONAL AUDIT OFFICE My No. yFP/AGL/C/FA/MOPI/4/201 'YOUJ No. Date3 July 2019 Secretary, Ministry of Primary Industries and Social Empowerment Report of the Auditor General on the Financial Statements of the Agriculture Sector ModernizAtion Project - Part 01 for the year ended 31 December 2018 1. Financial Statements 1.1 Qualified Opinion The audit of financial statements of the Agriculture Sector Modernization Project - Part 01 for the year ended 31 December 2018 comprising the balance sheet as at 31 December 2018 and the statement of expenditure and cash flow statement for the year then ended and notes to the financial statements, including a summary of significant accounting policies was carried out under my direction in pursuance of provisions in Article 154(1) of the Constitution of the Democratic Socialist Republic of Sri Lanka read in conjunction with Schedule 2, Section II, B.3 of Financing Agreement No. 5873-LK dated 17 January 2017 entered into between the Democratic Socialist Republic of Sri Lanka and the International Development Association. This report consists of the matters observed during the course of audit and submitted for the consideration of the Executing and Implementing Agencies of the Project. In my opinion, except for the effects of the matters described in the Basis for Qualified Opinion section of my report, the accompanying financial statements give a true and fair view of the financial position of the Project as at 31 December 2018, financial performance and its cash flows for the year then ended in accordance with Sri Lanka Public Sector Accounting Standards. 1 gos 306 72. o uxdco P &&niec'. z 3oz: Ro. 306/72, Quat6 6) d, u0,bp66m&. E6IM, No. 306,72, Polduwa Road, Battaramulia, Sti Lanka. +94 11 2 88 70 28 - 34 I , +94 11 2 88 72 23 ag@auditorgeneral.gov.1k ) www.naos1.govJk NATIONAL AUDIT OFFICE NAOSL I 1.2 Basis for Qualified Opinion * The financial statements of the Project for the year ended 31 December 2018 required to be submitted for audit on or before 31 March 2019, as per the Circular No. MOFP/ERD/2007/002 of 07 August 2007 of the Secretary of the General Treasury had been submitted only on 25 April 2019. * According to Project Appraisal Document, the cost of the Project was comprised with the contribution of US$ 44.10 million equivalent to Rs. 6,620.39 million from the beneficiaries of the Project. However, the action had not been taken by the Project to establish a mechanism to record the beneficiary contribution separately and made accounting treatments thereon. * The exchange gain of foreign currency transactions amounting to Rs.231.77 million had been set off against the operational expenditure of the Project. I conducted my audit in accordance with Sri Lanka Auditing Standards (SLAuSs). My responsibilities, under those standards are further described in the section of Auditor's Responsibilities for the Audit of the Financial Statements appeared in my report. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion. 1.3 Other information on performance of the Project The other information as stated below does not include in the financial statements and my opinion thereon does not cover the other information. * It was observed that the Project had not prepared a comprehensive plan to achieve of the objectives of the Project within scheduled period of the Project. As a result, US$ 5.87 million equivalent to Rs. 939.68 million representing 9.65 per cent, out of total amount of the Loan of US$ 60.77 million equivalent to Rs. 8,869.38 million had only been utilized as at 31 December 2018, after lapse of 02 years from the date of commencement of the activities of the Project. In 2 NATIONAL AUDIT OFFICE . NAOSL* addition, out of the total allocation of Rs. 1,200 million made for the Project in the Budget Estimate 2018, only a sum of Rs. 404.10 million had been utilized during the year under review. * It was observed that the Project had utilized only US$ 5.87 million as at 31 December 2018, out of the proceeds amounting to US$ 13.93 million credited by the Lending Agency up to that date. The balance of US$ 8.06 million had remained unspent over 06 months in the Special Dollar Account at the Central Bank of Sri Lanka whilst other balances amounting to Rs.212.79 million had remained in the Bank Current Account of the Project over 06 months as at 31 December 2018, without being used for intended purposes. * The activities of the Project consist of 03 sub components of investment preparation support, awarding of matching grants to the Farmer Producers' Organizations and supporting to share the financial risk with Participating Financial Institutions etc,. The following observations are made on the progress of implementation of the activities of the Project. - The matching grant program was expected to implement to support to 350 Farmer Producers' Organizations in Jaffna, Mullative, Anuradhapura, Batticaloa, Monaragala, Matale and Polonnawaruwa districts. However, the Project had released matching grants aggregating Rs. 579.57 million only to 61 Farmer Producers' Organizations in the above mentioned districts. Out of that only 52.37 million had been granted to 07 Farmer Producers' Organizations in Mullative and Batticaloa districts upto 31 December 2018. - The contracts for the preparation of investment proposals in the Uva, Central, and North Western Provinces had been awarded for 02 Technical Service Providers. Out of that only a service provider had completed 15 proposals and released a sum of Rs.1.61 million thereon as at 31 December 2018. According to the agreements entered thereon, contract periods are expected to be closed as at 31 June 2019. 3 NATIONAL AUDIT OFFICE NAOSL, - It was observed that the allocation amounting to US$ 7.12 million to carry out activities under the component of Partial Credit Guarantee of the Project had not been utilized upto 31 December 2018. According to the explanations made by the Project several awareness programs with the representatives of Licensed Commercial Banks had been held and no action had been initiated by the respective Banks, due to problems faced in administrative arrangements. * The position of the Project Director had remained vacant since 31 March 2018 upto 30 June 2019 and it was badly affected to the smooth operations of the Project. Further, the action had not been taken to recruit an Internal Auditor, as required by the Circular No. DMA/D/2015 of 15 June 2016 of the Department of Management Audit. * A web- based GIS software procured by the Project in the previous year at a cost of Rs. 4.25 million had not been recorded in the Register of Computer and Accessories, as required to be maintained as per the Circular No. IAI/2002/02 of 28 November 2016 of the Ministry of Finance. Further, the action had not been taken to use the software over a year for intended purposes. 1.4 Responsibility of the management and those charged with governance for the Financial Statement Management is responsible for the preparation and fair presentation of these financial statements in accordance with Sri Lanka Public Sector Accounting Standards and for such internal control as the management determines as necessary to enable the preparation of financial statements that are free from material misstatements, whether due to fraud or error. 4 NATIONAL AUDIT OFFICE NAOSL In preparing the financial statements, management is responsible for assessing the Project ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intend to liquidate the Project or to cease operations, or has no realistic alternative but to do so. Those charged with governance are responsible for overseeing the Project's financial reporting process. The Project is required to maintain proper books and records of all its income, expenditure, assets and liabilities, to enable annual and periodic financial statements to be prepared by the Project. 1.5 Auditor's Responsibilities for the audit of the Financial Statements My objective is 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 Sri Lanka Auditing Standards 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. As part of an audit in accordance with Sri Lanka Auditing Standards, 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. 5 NATIONAL AUDIT OFFICE NAOSL * 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 Project's internal control. * Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the 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, significant audit findings, including any significant deficiencies in internal control that I identify during my audit. 2. Report on other requirements of the Donor Agency As required by the International Development Association, I state the followings. (a) The basis of opinion and scope and limitations of the audit are as stated above. (b) In my opinion: - except for the effect of the matters described in, the Basis for Qualified Opinion section of my report, I have obtained all the information and explanation that required for the audit and as far as appears from my examination, proper accounting records have been kept by the Project, - * the funds provided had been utilized for the purposes for which they were provided, 6 NATIONAL AUDIT OFFICE NAOSL - the Statements of Expenditure submitted could be fairly relied upon to support the applications for reimbursement in accordance with the requirements specified in the Financing Agreement, - the opening balance and closing balances, withdrawal from and replenishments to the Special (Dollar) Account had been truly and fairly disclosed in the book and record maintain by the Project and the balance as at 31 December 2018 had been satisfactorily reconciled with the accounting records of the Central Bank of Sri Lanka as at that date, - the satisfactory measures had been taken by the management to rectify the issues highlighted in my previous year audit report, and - the financial covenants laid down in the Financing Agreement had been complied with. W.P.C Wickramaratne Auditor General 7 MINISTRY OF PRIMARY INDUSTRIES AND SOCIAL EMPOWERMENT AGRICULTURE SECTOR MODERNIZATION PROJECT- VALUE CHAIN DEVELOPMENT FINANCIAL STATEMENTS FOR THE YEAR ENDED 31s` DECEMBER 2018 Financed by The International Development Association (IDA) under the \Vorld Bank Join hands with us to becomne a towering pillar in the export world th through modermization" 9*April 2019 MINISTRY OF PRIMARY INDUSTRIES AND SOCIAL EMPOWERMENT AGRICULTURE SECTOR MODERNIZATION PROJECT - VALUE CHAIN DEVELOPMENT CONTENTS Folio 01 Introduction to the ProJect 01-03 02 Accounting Policies 04-06 03 Statement of expenditure 07 04 Statement of financial position 08 06 Statement of Cash Flow 09 05 Notes to the Financial Statement 10-15 I I I Introduction to the Project Ministry of Primary Industries & Social Empowerment (MOPI&SE) Project Title: Agriculture Sector Modernization Project Duration(year): 5 years Total Estimate: USD Mn. 102.73 Finance Agreement : Credit Number 5873-LK Financing Agreement of ASMP was signed between the Government of Sri Lanka and the International Development Association (IDA) of the World Bank on January 17" 2017. Project Description: The project development objectives are to support increasing agriculture productivity, improving market access, and enhancing value addition of smallholder farmers and agribusinesses in the project areas. The project consists of the following parts; Part 1 Agriculture Value Chain Development Part 2 : Productivity Enhancement & Diversification Demonstrations Part 3 : Project Management, Monitoring & Evaluation Component/Part 1: Value Chain Development Component I is implemented by the MOPI in line with its mandate of promoting commercial and export-oriented agriculture and is identified into 3 sub components as follows: Sub-Component 1.1: Investment Preparation Support Sub-Component 1.2: Matching grants to farmer producer organization and agribusiness Sub-Component 1.3: Partial Credit Guarantee for agribusiness financing I The objective of Component 1 is "promote commercial and export-oriented agriculture through attracting and leveraging investments from smallholder producer organizations and agri- enterprises for higher value agriculture production and value addition". The overall strategic thrust reflected in the project design is: (a) developing a framework and incentive structure for SME agribusinesses, including farmer producer organizations to invest in commercial agriculture and value chains; (b) promoting partnership arrangements between private sector partners and smallholder producers for better linkages and market access; (c) demonstrating new agriculture I II I I technologies and innovations at sufficient scale to enhance productivity, resilience, value addition and diversification The component will provide the enabling environment for sub-project investments through matching grants and linkages to the commercial banking sector with innovative risk sharing arrangements. Expected Output: Increased value-addition, new market opportunities, fostering increased incomes and employment opportunities, adoption of modern technologies, improved product quality and reduced post-harvest losses; better market differentiation through product certification, branding, advantages from economies of scale through new organizational production arrangements. Indirect benefits are expected to include: (a) strengthened capacity and the organizational level of producers and marketing groups, including strengthened capacity of female farmer entrepreneurs; (b) improved quality and reduced costs of forward and backward linkages of farmers to markets and higher-up value chain operators; (c) increased awareness of technology, climate smart agriculture, and resources management; (d) new models of small producers and private sector enterprises working together; and (e) improved nutrition through diversification of agriculture away from rice and increased production of fruits and vegetables. PROJECT DEVELOPMENT OBJECTIVES The Project Development Objectives are to support increasing agriculture productivity, improving market access and enhancing value addition of smallholder farmers and agribusinesses in the project areas. Project Beneficiaries The project is national in scope. The project's matching grants program is expected to support approximately 350 existing and newly established farmer producer organizations and approximately 50 agribusiness partnership arrangements under a demand-driven approach for project investment support. It is estimated that up to 15,000 smallholder farm households will directly benefit from the matching grants program through higher productivity, new income opportunities, value added production, and improved market linkages. The evaluation criteria for the approval of matching grant support under the project give preference to women-led farmer producer groups and organizations under the matching grants small funding window and promote women representation in productive and value-added activities in the envisaged partnership arrangements between producer organizations with agribusinesses. It is expected that approximately 30 percent of the farmer producer organizations benefitting under the project's small matching grants window will be women-led farmer producer organizations. In addition to the matching grants program, the project specifically targets selected districts in the lagging regions of the Northern, Eastern, North-Central, Central, and Uva Provinces that are 2 I characterized by high poverty headcounts and high absolute numbers of poor. The project's agriculture technology demonstration parks and the complementary production infrastructure investments are intended to cover 7 priority districts of Jaffna, Mullaitivu, Anuradhapura, Batticaloa, Moneragala, Matale, and Polonnaruwa. It is estimated that at least 14,000 farm households will directly benefit from the project's agriculture technology demonstrations through improved production capacity, improved input supply and management, better and more efficient technology, improved market linkages, as well as opportunities for value addition. In addition, an estimated 20,000 farm households would benefit from project support to establish professional farmer organizations and from capacity building through farmer business and marketing training activities, and improved eligibility to access the matching grants or commercial financing. The project will also benefit the Ministry of Primary Industries (MOPI), the Ministry of Agriculture (MOA) and the five participating Provincial Councils through the respective Provincial Ministries of Agriculture through institutional capacity building and support to sector policy analysis and development to become more effective and better coordinated public services providers and facilitators of the modernization of the agriculture sector. The project will indirectly benefit commercial banks to deepen the understanding of investments opportunities and risks in commercial agriculture and participating agribusinesses through their participation in the project's matching grant program and the partial credit guarantee facility. PDO Level Results Indicators The achievement of the PDO will be measured using the following results indicators: > Number of direct project beneficiaries (disaggregated by gender). > Number participating farmers who adopted an improved agriculture technology promoted by the project (productivity indicator; disaggregated by gender). > Increase in the average value of sales of agriculture products due to project interventions (percentage; market access indicator). > Number of new jobs created through investments in agriculture small and medium enterprises (SMEs) under the project (value addition indicator; disaggregated by gender). Financial Performance The Directors of ASMP is pleased to submit the financial statements of the project for year ended 31st December 2018.The Finance Agreement was signed on 17'h January 2017 and the project officially started its operation on 17'h March 2017 and financials are prepared based on these dates. 3 ACCOUNTING POLICIES SUMMARY OF SIGNIFICANT ACCONTING POLICES ARE SET OUT BELOW. 01 GENERAL ACCOUNTING POLICIES 1.i Basis of Reporting L.Li Reporting Period The reporting period for these Financial Statement is from 01st January to 31st December 2018 1.1.2 Basis of Preparation The Financial Statements have been prepared on historical cost convention in accordance with Sri Lanka Financial Reporting Standard laid down by the Institute of Chartered Accountants of Sri Lanka.for Public accounting. These Financial Statements have been prepared on cost model, unless otherwise specified. The figures of the Financial Statements are presented in Sri Lankan rupees rounded to the nearest rupee. No adjustment is made for inflationary factors affecting these accounts. 1.1.3 Going Concern The Director's have made an assessment of the Project's ability to continue as a going concern and they do not intend to cease operations. 1.1.4 Accounting Policies and Comparative information The Accounting Policies applied unless otherwise stated are consistent with those used in the previous year. Previous Year figures and phrases have been rearranged, wherever necessary, to confirm to the current years. 1.1.5 Significant Accounting Judgment, Estimates and Assumptions The preparation of the Financial Statements requires the management to make Accounting judgment, estimates and assumptions that effect the reported income, expenses, assets and liabilities Uncertainty about these assumptions and estimates could result in outcomes that require material adjustment to the carrying amount of the assets or liability affected in future period. 4 ASSETS AND BASES OF THEIR VALUATION 2.1 Recognition and Measurement of Property, Plant and Equipment (PP&E) 2.1.1 COST An item of Property, Plant and Equipment is recognized when it is probable that future economic benefit associated with the assets will flow to the entity and the cost of the assets can be reliably measured. PP&E are measured at cost and less accumulated depreciation which is provided on the base specified below. The cost of the assets is the cost of acquisition or construction together with any expenses incurred in bringing the asset to working condition for its intended use. Expenditure incurred for the purpose of acquiring, extending or improving assets of a permanent nature by means of which to carry on the business or to increase the eaming capacity of the business has been treated as capital expenditure. 2.1.2 Depreciation Depreciation is recognized on a straight line basis to write down the cost less estimated residual value of Property, Plant and Equipment other than freehold land over the useful The estimated useful lives of property, plant & equipment are as follows. Years Rate Motor Vehicle 4 years 25% Computers 4 years 25% Office Equipment 5 years 20% Furniture & Fittings 8 years 12.50% Depreciation of an asset begins in the subsequent financial year from purchase and cease at the earlier of the date that the asset is classified as held for sale and the date that the asset is The assets residual values, useful lives and depreciation methods are reviewed and adjusted if required at the end of each financial year. 2.1.3 Cash & Cash Equivalents The Cash flow has been prepared by using the "Indirect Method" of preparing of cash flows. Cash and Cash equivalents comprise of Cash in hand and Bank. Cash & cash equivalents include local currency notes and coins on hand as at 31st I I I 03. LIABILITIES AND PROVISIONS 3.1 Liabilities All material liabilities as at the date of financial position have been included in the accounts and adequate provision has been made for liabilities which are known to exist but the amount of which cannot be determined accurately. Liabilities classified as current liabilities in the balance sheet are those which fall due for payment on demand or within one year from the the date of financial position date. 04 STATEMENT OF EXPENDITURE 4.1 Recogntion of Revenue Exchange gain and losses are recognised on the cash receipts during the accounting period irrespective of taxable period. 4.2 Expenditure Recognition All expenditure incurred or to be incurred can be reliably measured, regardless of when the payment is being made in the operation of the project and in maintaining the capital assets in a state of efficiency has been charged to the expenditure statement for the period, after making provisions for all known liabilities. 16 E MINISTRY OF PRIMARY INDUSTRIES AND SOCIAL EMPOWERMENT AGRICULTURE SECTOR MODERNIZAION PROJECT - VALUE CHAIN DEVELOPMENT STATEMENT OF EXPENDTURE FOR THE YEAR ENDED 31ST DECEMBER 2018 2017/18 2016/17 NOTES Rs. Rs. Project Expenditure under Category 2 & 5 as per finance Agreement Eligible Expenditure Category 02 - Matching Grant Under Part 1(b) of Project Matching Grants to Proponents 244,634,684.89 134,946,500.00 Category 05 - Expenditure under part 3 of the project Project Staff Salary 1 54,141,827.06 34,857,693.29 Consultancy fee 2 7,926,596.40 5,074.,500.00 Other incremental Operating Cost 3 86,943,454.17 38,030,183.11 Total Expenditure 393,646,562.52 212,908,876.40 Add. Exchange Gain or (loss) 231,777,539.70 (5,082,346.66) Total Net expenditure for the period (161,86902?.82) (217.991,223.06) Total Net Expenditure for 2017 B/F (217,991,223.06) AccuMUlate Net Expenditure C/F (379,860,245.88) 1 7 MINISTRY OF PRIMARY INDUSTRIES AND SOCIAL EMPOWERMENT AGRICULTURE SECTOR MODERNIZAION PROJECT - VALUE CHAIN DEVELOPMENT BALANCE SHEET AS AT 31ST DECEMBER 2018 ASSETS NOTES 2017/18 2016/17 Rs. IRS. Non Current Assets Property, Plant and Equipment 4 90,252,66351 80,114,17790 Current Assets Trade and other Receivables Advance Received 5 194,099.00 24,980.00 Refundable Deposit - Rent 270,00000 Cash & Cash Equivalents Cash In Hand 6 100,000.00 100,000.00 Bank Balance BOC -7042635 Battaramaulla Branch 212,796,878-57 41,938,632.86 Central Bank Balance 1,474,019,510.71 1,344,936,585.62 Total Current Assets 1,687,380,488.28 1,387,000,198.48 TOTAL CURRENT ASSETS 1,777,633,151.79 1,467,114,376.38 EQUITY & LIABILITIES Capital & Resenes Net expenditure 2017 (217,991,223,06) Accumulate expenditure C/F - 2018 (379,860,245.88) Loan Term Liabilities L,DA. Loan Account 2,157,324,315.22 1,685,018,931,33 Current Liabilities Advance Paid 7 26,668. 11 Refundable Deposit for Supplier 18,000.00 60,000.00 EPF Payable 77,049.64 ETF Payable 11,557.81 BID Security Deposit 50,000.00 Stamp Duty Payable 12,475.00 Total Current Liabilities 169,082.45 86,66811 TOTAL EQUITY & LIABILITIES 1,777,633,151.79 1,467,114,376,38 It is certified that the Financial Statements have been prepared in compliance with the requirement of Financing Agreement (Agriculture Sector Modernization Project) between democratic Socialist Republic of Sri Lanka and International Development Association dated 17-01-2018 We hereby certify that assets have been physically verified and in order. I ance Manager Project Director MOPI & SE - ASMP I MOPI & SE - ASMP Secretar) Ministry oPr Industries and Social Empowerment Date 06-08-2019 Ashoka Alawatte Secretary Ministry of Primary Industries & Social Empowerment, 1" Floor, "Sethsiripaya" -Stage 11 Battaramulla. MINISTRY OF PRIMARY INDUSTRIES AND SOCIAL EMPOWERMENT AGRICULTURE SECTOR MODERNIZAION PROJECT - VALUE CHAIN DEVELOPMENT STATEMENT OF CASH FLOW FOR THE YEAR ENDED 31ST DECEMBER 2018 2018 2017 Cash flows from the operating activities Rs. Rs. Net Expenditure (161,869,022.82) (217,991,223.06) Adjustment for Depreciation 19,233,17872 Operating Expenditure before changes in working capital (142,635,844.10) (217,991,223.06) (Increase) /Decrease in Other Receivables (169,119.00) (24,980.00) (Increase) /Decrease in Refundable Deposit (270,000.00) Increase /( Decrease) in Sundry Creditors & Payable (68,668.11) 86,668.11 Increase / Decrease ) in Refundable Deposit for Supplier 151,082.45 Cash Generated from operations (142,992,548.76) (217,929,534.95) Net cash flow from operating activities (142,992,548.76) (217,929,534.95) Cash flows from the Investing activities Purchase of Property, Plant & Equipment (29,371,664.33) (80,114,177.90) Net Cash flows from the Investing activities (29,371,664.33) (80,114,177.90) Cash flows from the Financing activities Net Change of Borrowing 472,305,383.89 1,685,018,931.33 Net Cash used in financing activities 472,305,383.89 1,685,018,931.33 r Net Increasing/(Decreasing) in Cash & Cash Equivalent 299,941,170.80 1,386,975,218.48 Cash & Cash Equivalent at beginning of period 1,386,975,218.48 Cash & Cash Equivalent At The End of year - (NOTE A) 1,686,916,389.28 1,386,975,218.48 NOTE A Cash & Cash Equivalent Cash In Hand 100,000.00 100,000.00 Bank Balance BOC - 7042635 Battaramulla Branch 212,796,878.57 41,938,632.86 Central Bank Balance 1,474,019,510.71 1,344,936,585.62 1,686,916,389.28 1,386,975,218.48 9 NOTES TO THE ACCOUNTS 2017/18 2016/17 Note 01 Rs. Rs. I Project Salaries Salary 45,686,003.19 26,714,101.42 EPF 5,473,146.69 5,872,302.02 ETF 1,368,286.75 880,845.41 Salary -OT 910378,55 210,947.29 Payee - 849,297.16 Fuel Allowance 183,737.13 Allowance - 79,999,99 Casual Wages 520,274.75 250,200.00 54,141,82706 34,857,69329 Note 02 2017/18 2016/17 Rs. Rs. I Consultancy fee 7,926,596.40 5 ,0 7 40500.00 7,926,596.40 5,074,500.00 I I I I Note 03 2017/18 2016/17 Other Incremental Operating Cost Rs. Rs. Advertising 1,817,030.44 1,366,610.73 Awareness Programmed 101,824.94 - Accommodation Charges 6,120.00 - Agreement Signing Expenses 1,344,688.50 - Bank Charges 4,575.00 - Commission Charges - 27,000.00 Courier Charges 12,555.05 - Cleaning Service Charges - 46,800.00 Computer Maintained Charges 100,366.62 - Computer Software Charges 2,500.00 31,193.42 Design Development Cost 56,250.00 - Dep: Computer 1,304,470.48 - Dep: Printer 48,800.00 - Dep: Furniture and Fitting 159,251.59 - Dep: Office Equipment 1,466,846.65 - Dep: Fax 49,68000 - Dep: Photocopiers 724,730.00 - Dep: Scanner 77,400.00 - Dep: Laser 177,000.00 - Dep: Motor Vehicle 15,225,000.00 - Electricity Charges - 2,367.00 ETF Surcharge Charges 7,249.72 - Exhibition Charges 8,594,097.92 1,705,165.00 Exhibition Charges - Foreign 4,639,687.73 - Foreign Consultancy Fee - Accommodation and Fo 42,366.20 - Foreign Consultancy Fee - Travel Charges 565,711.00 - Foreign Consultancy Fee - Rent Charges 540,000.00 - Foreign Travel 15,183,725.91 13,497,626.40 Fuel Charges 3,710,456.92 1,312,902.50 Holiday Payment 980,413.00 1,025,274.48 Hardware Charges 2,570.00 - Internet Charges 1,154,455.76 230,01 139 Insurance Charges 870,071.49 706,073.35 Matching Grant Governing Board Payment 1,280.000.00 95,000.00 Office Maintains 85,039.00 21,025.00 Paper Advertisement Charges - 322,402.50 Postage Charges 22,309.00 - Printing And Stationery 1,790,358.47 1,1 12,744.44 Promotion Charges 98,945.63 Photocopy Machine Repair Charges 140,375.84 Parking Charges 180.00 - Refreshment And Foods 4,314,367.74 1.292.428.83 Regional Off - Vauniya Opening Exp: - 273,320.00 Regional Off - Galle Renovation Exp: 966,980.13 3,899,312.32 Regional Off- Galle Construction Fee 141,964.38 - Regional Off - Galle Telephone Charges 71,079.82 26,312.43 Regional Off - Galle Cleaning Charges 174,750.00 - Regional Off - Galle Water Charges 6,31952 Regional Off - Galle Electricity Charges 74,747.76 3,003.30 Regional Off - Vauniya Refundable Deposit - 390,000.00 Regional Off - Vauniya Electricity Charges 31,090.20 3,635.00 Regional Off- Wtc Telephone & Internet Charges 97.505.03 6,120.70 Regional Off- Wte Parking Charges 69,000.00 - Regional Off- Vauniya Cleaning Charges 440,760.00 180,560.00 Regional Off - Vauniya Rent Charges 910,000.00 325,000.00 Regional Off - Vauniya Telephone Charges 56,788.12 20,071.70 Regional Off - Ampara Cleaning Charges 485.063.27 81,600.00 Regional Off - Ampara Telephone Charges 104,629.45 44,212.76 Regional Off - Ampara Communication Charges - 3,475.00 Regional Off - Ampara Electricity Charges 40,488.03 20,613.00 Regional Off- Ampara Water Charges 16,115.91 583.00 Research & Training - 8,400.00 Regional Off- Kandy Telephone Charges 56,139.96 24,411.61 Regional Off- Kandy Renovation & Construction 4 5.556,158.48 - Resource Personal Fee - 7,150.00 Renovation Charges - 1,135,715.00 Staff Training - 423,000.00 Stamp Charges 530.00 - Surcharge - 6,191.08 Study Tour Charges - 2362,677.84 Telephone Charges 380,400.47 113,262.50 Tea Expenses 45,896.50 - Traveling Charges - 1,527,963.63 Travelling and Transport Charges 512,581.88 104,608.50 Technical Review And Evaluation Payment 3,380,000.00 398,000.00 TSP 1,612,560.00 - Translation Cost 23.1 172.00 Training Program Exp: and Entertement Charges 932,550.00 Traveling Allowance - 236,813.67 Vehicle Hiring Charges 545,132.01 2,248,638.00 Vehicle Insurance Charges 195,345.07 175,246.83 Vehicle Maintains Charges 2,941,391.03 136,439.82 Vehicle Parking Charges - 34,500.00 Vehicle Repair Charges - 273,570.55 Work Shop Cost 200,000.00 - Web Site Development Charges 168,750.00 - Water Bottle Charges 4,094.55 649.75 Petty Cash Exp: - 250,677.12 Lawyer Chargers - 15,600.00 Office Package - 15,495.23 Program Arrangement Exp: - 342,776.00 Seminar Exp: - 115,951.73 86,943,454.17 38,030,183.11 12 teo 04 ROPERTY, PLANT & EQUIPMENT ,FREEHOLD ASSETS BALANCE ADDITIONS BALANCE ACC. DEP. CHARGED ACC. DEP. BALANCE AS AT DURING AS AT AS AT DURING AS AT AS AT 01-01-18 THE YEAR 31-12-2018 01-01-18 THE YEAR 31-12-2018 31-12-2018 Rs. Rs. Rs. Rs. Rs. Rs. Rs. Computer and Accessories (Sch: 01) 5,461,881.90 1,470,277.32 6,932,159.22 - 1,353,270.48 1,353,270.48 5,578,888.75 Furniture & Fittings (Sch: 02) 1,274,012.75 1,474,045.00 2,748,057.75 - 159,251.59 159,251.59 2,588,806.16 Office Equipment (Sch :03) 12,478,283.25 6,177,342.01 18,655,625.26 - 2,495,656.65 2,495,656.65 16,159,968.61 Motor Vehicles (Sch: 04) 60,900,000.00 20,250,000.00 81,150,000.00 - 15,225,000.00 15,225,000.00 65,925,000 00 80,114,177.90 29,371,664.33 109,485,842.23 19,233,178.72 19,233,178.72 90,252,663.51 13 Sch - 01 ACC. DEP Computer and Accessories 2018 2017 Computer - 5,217,881.90 1,304,470.48 Printer - 244,000.00 48,800.00 ERP System 1,470,277.32 - 1,470,277.32 5,461,881.90 1,353,270.48 Sch 02 Furniture & Fittings 2018 2017 Galle Name Board 246,272.50 - Furniture and Fitting 1,183,702.50 1,274,012.75 159,251.59 Name Board - MOPI 44,070.00 - 1,474,045.00 1,274,012.75 159,251.59 Sch - 03 Office Equipment 2018 2017 Tea Sets, Cups & Water Glass 36,684.00 - - Furniture Safe & Cash Box 593,130.00 - Water Filter and Fans 109,380.00 - - Installation Conference Room Facility 4,612,164.51 - -Binder Machine 37,133.50 - - Petty Cash other miscellaneous 8,325.00 Office Equipment 5,396,817.01 7,334,233.25 1,466,846.65 Fax Machine - 248,400.00 49,680.00 Photocopiers 769,925.00 3,623,650.00 724,730.00 Scanner - 387,000.00 77,400.00 Laser - 885,000.00 177,000.00 Pantry Items 10,600.00 6,177,342.01 12,478,283.25 2,495,656.65 Sch - 04 2018 2017 Motor Vehicles Toyota Lanka - 3 no's Car (Yaris) 20,250,000.00 - 5,062,500.00 Toyota Lanka - 2 no's Van - 17,900,000.00 4,475,000.00 United Motors - 05 no's Double Cabs - 43,000,000.00 10,750,000.00 20,250,000.00 60,900,000.00 15,225,000.00 14 Note 05 Advance Received - Unsettled advance 2018 2017 Advance - Ms. Kumari 36,689.00 - Advance - MOPI 157,410.00 24,980.00 194,099.00 24,980.00 Note 06 Cash in Hand Regional office - Galle Petty Cash 20,000.00 20,000.00 Regional office - Ampara Petty Cash 20,000.00 20,000.00 Regional office - Kandy Petty Cash 20,000.00 20,000.00 Regional office - Vauniya Petty Cash 20,000.00 20,000.00 PMU - Petty Cash 20,000.00 20,000.00 100,000.00 100,000.00 I I I I I I I I I I I 15