CARIBBEAN INDUSTRIAL RESEARCH INSTITUTE (CARIRI) AND SCIENTIFIC RESEARCH COUNCIL (SRC) – (THE CONSORTIUM) INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT (WORLD BANK) GRANT NO. TF 0A0081-6R JAMAICA/TRINIDAD CARIBBEAN CLIMATE INNOVATION CENTER (CCIC) PROJECT FINANCIAL STATEMENTS 30 NOVEMBER 2017 CARIBBEAN INDUSTRIAL RESEARCH INSTITUTE (CARIRI) AND SCIENTIFIC RESEARCH COUNCIL (SRC) – (THE CONSORTIUM) INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT (WORLD BANK) GRANT NO. TF 0A0081-6R JAMAICA/TRINIDAD CARIBBEAN CLIMATE INNOVATION CENTER (CCIC) PROJECT FINANCIAL STATEMENTS 30 NOVEMBER 2017 INDEX Page INDEPENDENT AUDITORS’ REPORTS  On the Caribbean Industrial Research Institute (CARIRI) and Scientific Research Council (SRC) International Bank for Reconstruction and Development (World Bank) Grant NO. TF 0A0081-6R Jamaica/Trinidad Caribbean Climate Innovation Center (CCIC) Project’s Financial Statements 1  On System of Internal Control 1.2  On Compliance with the Financial Clauses of the Project Agreement and with Legislation and Official Regulations 1.4 FINANCIAL STATEMENTS Statement of Sources and Uses of Funds 2 Statement of Cumulative Investments 3 Statement of Designated Account Reconciliation 4 Notes to the Project Financial Statements 5-7 Page 2 CARIBBEAN INDUSTRIAL RESEARCH INSTITUTE (CARIRI) AND SCIENTIFIC RESEARCH COUNCIL (SRC) – (THE CONSORTIUM) INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT (WORLD BANK) GRANT NO. TF 0A0081-6R JAMAICA/TRINIDAD CARIBBEAN CLIMATE INNOVATION CENTER (CCIC) PROJECT STATEMENT OF SOURCES AND USES OF FUNDS PERIOD ENDED 30 NOVEMBER 2017 Actual Budget US$ US$ RECEIPTS World Bank Desígnated account 1,328,321 1,500,000 Reimbursements 61,679 - Interest 599 - Total Receipts 1,390,599 1,500,000 EXPENDITURES Component 1 - Continue to build a pipeline of growth-oriented entrepreneurs 464,233 580,083 Component 2 - Strengthen the capacity of the entrepreneurs 22,822 355,157 Component 3 - Facilitate access to early growth-stage capital 72,965 314,677 Component 4 – Capture and disseminate the knowledge 27,249 250,083 Project management and administrative costs 287,171 - Total Expenditures 874,440 1,500,000 RECEIPTS LESS EXPENDITURES 516,159 - . Foreign Exchange Adjustment ( 882) - Funds due to the CTEP project 38,322 - . 37,440 - . BANK BALANCES Opening Cash Balances Desígnated account 45 - Project account US$ Account 102 - Project account J$ Account - - Total Opening Balance 147 - Closing Cash Balances Desígnated account 256,259 - Project account US$ Account 296,960 - Project account J$ Account 527 - Total Closing Balance 553,746 - . Page 3 CARIBBEAN INDUSTRIAL RESEARCH INSTITUTE (CARIRI) AND SCIENTIFIC RESEARCH COUNCIL (SRC) – (THE CONSORTIUM) INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT (WORLD BANK) GRANT NO. TF 0A0081-6R JAMAICA/TRINIDAD CARIBBEAN CLIMATE INNOVATION CENTER (CCIC) PROJECT STATEMENT OF CUMULATIVE INVESTMENTS PERIOD ENDED 30 NOVEMBER 2017 SRC CARIRI 2015 2016 2017 YRS 1-3 Total Component 1 153,054 20,495 290,684 - 464,233 Component 2 - 21,822 - 1,000 22,822 Component 3 - 72,965 - - 72,965 Component 4 - 7,486 - 19,763 27,249 Project management and administrative costs - 221,416 - 65,755 287,171 153,054 344,184 290,684 86,518 874,440 Page 4 CARIBBEAN INDUSTRIAL RESEARCH INSTITUTE (CARIRI) AND SCIENTIFIC RESEARCH COUNCIL (SRC) – (THE CONSORTIUM) INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT (WORLD BANK) GRANT NO. TF 0A0081-6R JAMAICA/TRINIDAD CARIBBEAN CLIMATE INNOVATION CENTER (CCIC) PROJECT STATEMENT OF DESIGNATED ACCOUNT RECONCILIATION PERIOD ENDED 30 NOVEMBER 2017 US$ 1. Total advance by International Bank for Reconstruction and Development (World Bank) 1,328,321 2 Less: Eligible expenditure for the period ended 30 November 2017 documented by the World Bank 812,761 2(a). Less: Cumulative eligible expenditure for the prior periods documented by the World Bank - 3. Present outstanding amount advance to the designated account (1-2) 515,560 4. Balance of USD designated account per bank reconciliation statement as at period end 256,259 4(a) Balance of project account per bank reconciliation statement as at period end 297,487 5. Plus: Eligible expenditure for the current period documented after the period end 30 November 2017 - 6. Plus: Total amount withdrawn and not yet claimed - Plus: Amounts claimed in previous applications not 7. yet credited at date of bank statements 8. CTEP funds in the Project account ( 38,322) 9. Less: Interest earned net of charges ( 599) 10. Total advance accounted for 514,825 11. Difference (3-10) 735 Item 11 - represents net of opening balances and exchange rate adjustment. Page 5 CARIBBEAN INDUSTRIAL RESEARCH INSTITUTE (CARIRI) AND SCIENTIFIC RESEARCH COUNCIL (SRC) – (THE CONSORTIUM) INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT (WORLD BANK) GRANT NO. TF 0A0081-6R JAMAICA/TRINIDAD CARIBBEAN CLIMATE INNOVATION CENTER (CCIC) PROJECT NOTES TO THE PROJECT FINANCIAL STATEMENTS 30 NOVEMBER 2017 1. IDENTIFICATION: The Caribbean Climate Innovation Center (CCIC) Project the beneficiary, operating through Caribbean Research Institute (CARIRI) and Scientific Research Council (SRC) the Implementing Agencies signed an agreement with the International Bank for Reconstruction and Development (World Bank) acting as administrator of grant funds provided by the Government of Canada under the Support for Entrepreneurship Program for Innovation in the Caribbean (EPIC) Multi-Donor Trust Fund (InfoDev Grant No. TF071619) in the sum of US$1,500,000. CARIRI, established in 1970 is a professional service body, wholly owned by the Government of Trinidad and Tobago with a mandate to provide technical, industrial and research services to public and private industrial enterprises as well as to collect and disseminate technical information, including applicable standards, specification and quality control procedures. Scientific Research Council (SRC) established in 1960, is wholly owned by the Government of Jamaica and is Jamaica’s principal public sector agency responsible for the fostering and coordination of scientific research and the promotion of its appli cation. Many of the SRC’s projects support the growth and development of the agro-industrial sector in Jamaica through research, adaptation of available technologies, creation of new and appropriate technologies and the provision of training and technical assistance. CARIRI and SRC are know as the “Consortium”. The beneficiary countries of the project include Trinidad and Tobago, Jamaica, Antigua and Barbuda, Bahamas, Barbados, Belize, Dominica, Grenada, Guyana, Montserrat, St. Kitts and Nevis, St Lucia, St. Vincent and the Grenadines and Suriname. 2. PROJECT OBJECTIVES AND ACTIVITIES: The objectives of the Grant are to continue the implementation of the Caribbean Climate Innovation Center (“CCIC”) project and to build the capacity of the CCIC to support growth - oriented entrepreneurs in developing locally-appropriate solutions to climate change mitigation and adaptation in the Caribbean. Ultimately, this will contribute to the strengthening of the entrepreneurship ecosystem in the region. Page 6 CARIBBEAN INDUSTRIAL RESEARCH INSTITUTE (CARIRI) AND SCIENTIFIC RESEARCH COUNCIL (SRC) – (THE CONSORTIUM) INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT (WORLD BANK) GRANT NO. TF 0A0081-6R JAMAICA/TRINIDAD CARIBBEAN CLIMATE INNOVATION CENTER (CCIC) PROJECT NOTES TO THE PROJECT FINANCIAL STATEMENTS 30 NOVEMBER 2017 2. PROJECT OBJECTIVES AND ACTIVITIES (CONT’D): The Project includes the following activities: (i) Building a pipeline of growth-oriented entrepreneurs, including providing Sub-grants to entrepreneurs through a competitive and transparent process to regional sub- projects on an annual basis and providing these entrepreneurs with access to services provided by CCIC. (ii) Providing technical assistance and support to strengthen the capacities of entrepreneurs through a suite of services such as business incubation, marketing- related training, mentoring, market development services, product testing and prototyping services. (iii) Facilitating access to early-stage capital in conjunction with the Access to Finance component of the EPIC program by providing entrepreneurs with targeted pre- investment advisory services, investment facilitation and engagement with angel investors, etc. (iv) Capturing and disseminating knowledge obtained through market analyses and case studies in the area of climate technology and entrepreneurship development in the Caribbean and sharing said knowledge with other Climate Innovation Centers being setup by infoDev’s Climate Technology Program around the world. SIGNIFI3. SIGNIFICANT ACCOUNTING POLICIES: (a) Basis of preparation - These financial statements have been prepared under the historical cost convention, using the cash basis of accounting, recognizing revenue when the cash is received and recognizing expenses when the cash has been disbursed. This accounting policy is a comprehensive basis of accounting other than that required under International Financial Reporting Standards (IFRS) under which transactions should be recorded when they occur and not when they are paid. Page 7 CARIBBEAN INDUSTRIAL RESEARCH INSTITUTE (CARIRI) AND SCIENTIFIC RESEARCH COUNCIL (SRC) – (THE CONSORTIUM) INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT (WORLD BANK) GRANT NO. TF 0A0081-6R JAMAICA/TRINIDAD CARIBBEAN CLIMATE INNOVATION CENTER (CCIC) PROJECT NOTES TO THE PROJECT FINANCIAL STATEMENTS 30 NOVEMBER 2017 SIGNIFI3. SIGNIFICANT ACCOUNTING POLICIES (CONT’D): (b) Foreign currency translation – The project’s accounting records are maintained in United States and Jamaican Dollars. Cash received in US$ currency, in a specific commercial bank account, is converted at the rate of exchange in effect at the time of the receipt of these funds. Expenditure incurred in Jamaican dollars is translated to US dollars at the rates of exchange ruling at the receipt dates. Balances in Jamaican currencies are translated to US dollars at the rate of exchange ruling at the end of the reporting period. The exchange rate gain or loss that results from a difference of the exchange rate when funds are receipted, payments made or converted are accounted for as an exchange rate difference. These financial statements are prepared under the historical cost convention, using the cash basis of accounting, in accordance with the C