Regional Disaster Vulnerability Reduction Project (RDVRP) IDA Credit No. 4986-VC; SCF-PPCR Grant No. TF010206; SCF-PPCR Loan No. TF011132; SCF-PPCR Grant No. TF016733; EDF Grant No. TF0A3698 Saint Vincent and the Grenadines Special Purpose Project Financial Statements and Independent Auditor’s Report For the year ended 31 December 2018 Regional Disaster Vulnerability Reduction Project IDA Credit No. 4986-VC; SCF-PPCR Grant No. TF010206; SCF-PPCR Loan No. TF011132; SCF-PPCR Grant No. TF016733; EDF Grant No. TF0A3698 CONTENTS Table of Contents Page Statement of Management’s responsibilities for the preparation and approval of the 3 Special Purpose Project Financial Statements for the year ended 31 December 2018 Independent Auditor’s Report 4 Special Purpose Project Financial Statements for the year ended 31 December 2018 Statement of Designated Account 7 Statement of Sources and Uses of Funds 9 Statement of Cumulative Investments 13 Notes to Special Purpose project financial statements 16 2 Privileged Privileged Information Information SARB & Associates CHARTERED ACCOUNTANTS 404, Second Floor, Patparganj Industrial Area, New Delhi - 110092, India Tel: +91-11-45639681 | Email: info@sarb.co.in | Website: www.sarb.co.in INDEPENDENT AUDITOR’S REPORT To The Director of Economic Planning Ministry of Finance, Economic Planning, Sustainable Development and Information Technology Kingstown, Saint Vincent and the Grenadines Report on the Special Purpose Project Financial Statements Opinion We have audited the special purpose project financial statements of "Regional Disaster Vulnerability Reduction Project", (the "Project") which comprise the statement of designated account reconciliation, statement of sources and uses of funds and statement of cumulative investments for the year ended 31 December 2018, and a summary of significant accounting policies and other explanatory information (the "special purpose project financial statements"). In our opinion, the accompanying special purpose financial statements present fairly, in all material respects, cash proceeds and disbursements and uses of funds by project components of the Project for the year ended 31 December 2018, in accordance with International Public Sector Accounting Standard "Financial Reporting Under the Cash Basis of Accounting" (the "IPSAS") issued by the International Public Sector Accounting Standards Board of the International Federation of Accountants, and the World Bank's Financial Management Sector Board's "Guidelines: Annual Financial Reporting and Auditing for World Bank Financed Activities" (the "WB Guidelines"). Basis of Opinion We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Project in accordance with the International Ethics Standards Board for Accountants' Code of Ethics for Professional Accountants (IESBA Code) together with the ethical requirements that are relevant to our audit of the special purpose project financial statements in Saint Vincent and the Grenadines, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Emphasis of matter All the expenditure reviewed for the period in our opinion satisfied the eligibility criteria except for an expenditure of USD 2,006 which is an excess payment of VAT (Refer section 2.2.4 of the Management Letter). Our opinion is not qualified in respect of this matter. 4 Privileged Privileged Information Information SARB & Associates CHARTERED ACCOUNTANTS 404, Second Floor, Patparganj Industrial Area, New Delhi - 110092, India Tel: +91-11-45639681 | Email: info@sarb.co.in | Website: www.sarb.co.in Further, we draw attention to Note 2 to the special purpose project financial statements which describe the basis of accounting. These special purpose project financial statements were prepared for complying with the appropriate World Bank Guidelines and Loan agreement requirements. Other matters The special purpose project financial statements are prepared to assist the Project to comply with the requirements of the World Bank. As a result, the special purpose project financial statements may not be suitable for another purpose. Responsibilities of Management and Those Charged with Governance for the special purpose project financial statements Management is responsible for the preparation and fair presentation of the special purpose project financial statements in accordance with International Public Sector Accounting Standard "Financial Reporting Under the Cash Basis of Accounting" (the "IPSAS") issued by the International Public Accounting Standards Board of the International Federation of Accountants, and the World Bank's Financial Management Sector Board's "Guidelines: Annual Financial Reporting and Auditing for World Bank Financed Activities" (the "WB Guidelines"), and for such internal control as management determines is necessary to enable the preparation of the special purpose project financial statements that are free from material misstatement, whether due to fraud or error. Auditor's responsibilities for the audit of the special purpose project financial statements Our objectives are to obtain reasonable assurance about whether the special purpose project 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 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 the special purpose project financial statements. As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also: · Identify and assess the risks of material misstatement of the special purpose project 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 our 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 Privileged Privileged Information Information SARB & Associates CHARTERED ACCOUNTANTS 404, Second Floor, Patparganj Industrial Area, New Delhi - 110092, India Tel: +91-11-45639681 | Email: info@sarb.co.in | Website: www.sarb.co.in · 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 management. · Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Project's ability to continue as a going concern. · If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the special purpose project financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Project to cease to continue as a going concern. · Evaluate the overall presentation, structure and content of the special purpose project financial statements, including the disclosures, and whether the special purpose project financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We 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 we identify during our audit. Bhushan Agrawal, Partner Membership Number: 408037 SARB & Associates CHARTERED ACCOUNTANTS Firm Registration Number: 017437C Date: 27/05/2019 Place: Delhi 6 Privileged Privileged Information Information Regional Disaster Vulnerability Reduction Project IDA Credit No. 4986-VC; SCF-PPCR Grant No. TF010206; SCF-PPCR Loan No. TF011132; SCF-PPCR Grant No. TF016733; EDF Grant No. TF0A3698 Special Purpose Project Financial Statements for the year ended 31 December 2018 Statement of Designated Account Bank of Saint Vincent and the Grenadines (Account Number 9016 & 9064– US Dollar Designated Accounts and Account number 135155 & 143363– Eastern Caribbean Dollar Accounts) For the year ended 31 December 2018 (Expressed in United States Dollars) Source of financing USD US$ IDA TF TF TF TF Interest/ 4986 10206 11132 Misc. Total 016733 0A3698 (50%) (35%) (15%) Income 1 Total advanced by World Bank 16,812,055 4,168,449 7,000,000 1,123,197 2,998,205 1,522,204 2 Less: eligible expenditure for the current year ended 2,391,531 - 1,614,602 - 345,000 431,928 31 December 2018 documented by World Bank Less: cumulative eligible expenditure for the prior 10,677,044 4,168,449 5,385,398 1,123,197 - - periods ended on 31 December 2017 documented by World Bank Present outstanding amount advanced to the 3,743,480 - - - 2,653,205 1,090,276 3 designated account (1 - 2) 4 Balance of USD designated account per bank 597,488 - - - 416,282 171,497 9,709 reconciliation statement as at year end 31 December 2018 Balance of project account per bank reconciliation 211,071 - - - 116,640 76,073 18,358 statement as at year end 31 December 2018 5 Plus: Eligible expenditure for the current year 2,962,989 - - - 2,120,283 842,706 - documented after the year end 6 Plus: Total amount withdrawn and not yet claimed - - - - - - - Reason: ______________________________ 7 Plus: Amounts claimed in previous applications not - - - - - - - yet credited at date of bank statements Subtotal of previous applications not yet credited - - - - - - - 8 Less: Interest earned (28,067) - - - - - - 9 Total advance accounted for (no. 4 through no. 9) 3,743,480 - - - 2,653,205 1,090,276 28,067 10 difference (3 - 9) - - - - - - 7 Privileged Privileged Information Information Regional Disaster Vulnerability Reduction Project IDA Credit No. 4986-VC; SCF-PPCR Grant No. TF010206; SCF-PPCR Loan No. TF011132; SCF-PPCR Grant No. TF016733; EDF Grant No. TF0A3698 Statement of Designated Account Bank of Saint Vincent and the Grenadines (Account Number 9016 & 9064– US Dollar Designated Accounts and Account number 135155 & 143363– Eastern Caribbean Dollar Accounts) For the year ended 31 December 2017 (Expressed in United States Dollars) Source of financing USD US$ IDA TF TF Interest/ 4986 10206 11132 Misc. Total (50%) (35%) (15%) Income 1 Total advanced by World Bank 12,291,645 4,168,449 7,000,000 1,123,197 2 Less: eligible expenditure for the current year ended 31 3,575,896 214,915 3,182,075 178,907 December 2017 documented by World Bank Less: cumulative eligible expenditure for the prior periods 7,101,148 3,953,534 2,203,323 944,290 ended 31 December 2016 documented by World Bank 3 Present outstanding amount advanced to the designated 1,614,602 - 1,614,602 - account (1 - 2) 4 Balance of USD designated account per bank reconciliation 541,393 - 533,773 - 7,620 statement as at year end 31 December 2017 Balance of project account per bank reconciliation statement as 649,454 - 639,735 - 9,719 at year end 31 December 2017 5 Plus: Eligible expenditure for the current year documented 441,094 441,094 after the year end 6 Plus: Total amount withdrawn and not yet claimed Reason: ______________________________ 7 Plus: Amounts claimed in previous applications not yet credited at date of bank statements Subtotal of previous applications not yet credited 8 Less: Interest earned (17,339) 9 Total advance accounted for (no. 4 through no. 9) 1,614,602 - 1,614,602 - 17,339 10 difference (3 - 9) - - - - 8 Privileged Privileged Information Information Regional Disaster Vulnerability Reduction Project IDA Credit No. 4986-VC; SCF-PPCR Grant No. TF010206; SCF-PPCR Loan No. TF011132; SCF-PPCR Grant No. TF016733; EDF Grant No. TF0A3698 Statement of Sources and Uses of Funds For the year ended 31 December 2018 Part A – Current Period (Expressed in United States Dollars) Current Period (USD) RECEIPTS Actual IDA 4986 TF 11132 TF 10206 Other Source of Financing Total TF 016733 TF 0A3698 (50%) (15%) (35%) Income World Bank Designated Account 4,520,409 - - - 2,998,205 1,522,204 - Direct Payment - - - - - - - Retroactive Financing - - - - - - - Other Income 10,857 - - - - - 10,857 Total Receipts (A) 4,531,266 - - - 2,998,205 1,522,204 10,857 LESS EXPENDITURES Component 1 3,924,693 - - 951,657 1,849,881 1,123,154 - Component 2 587,262 - - 65,184 370,618 151,460 - Component 3 - - - - - - - Component 4 401,470 - - 156,667 244,784 20 - Bank charges (Interest Expense) 126 - - - - - 126 Total Expenditures (B) 4,913,551 - - 1,173,508 2,465,283 1,274,634 126 RECEIPTS LESS EXPENDITURES Net Change in Cash (A - B) (382,285) - - (1,173,508) 532,922 247,570 10,731 Foreign Exchange Adjustment BANK BALANCES Opening Cash Balances Designated Account 9016 541,393 - - 533,773 - - 7,620 Project Account 135155 649,454 - - 639,735 - - 9,719 Total Opening Balance 1,190,847 - - 1,173,508 - - 17,339 Closing Cash Balances Designated Account 9016 426,011 - - - 416,282 - 9,730 Project Account 135155 131,673 - - - 116,640 - 15,033 Designated Account 9064 171,476 - - - - 171,497 (21) Project Account 143363 79,398 - - - - 76,073 3,325 Total Closing Balance 808,559 - - - 532,922 247,570 28,067 9 Privileged Privileged Information Information Regional Disaster Vulnerability Reduction Project IDA Credit No. 4986-VC; SCF-PPCR Grant No. TF010206; SCF-PPCR Loan No. TF011132; SCF-PPCR Grant No. TF016733; EDF Grant No. TF0A3698 Part B – Current Year End Cumulative Current Year End Cumulative (USD) RECEIPTS Actual Source of Financing Total IDA 4986 TF 11132 TF 10206 TF 016733 TF 0A3698 Other (50%) (15%) (35%) Income World Bank Designated Account 16,812,054 4,168,448 1,123,197 7,000,000 2,998,205 1,522,204 - Direct Payment 1,292,980 1,292,980 - - - - - Retroactive Financing - - - - - - - Other Income 28,791 - - - - - 28,791 Total Receipts (A) 18,133,825 5,461,428 1,123,197 7,000,000 2,998,205 1,522,204 28,791 LESS EXPENDITURES Component 1 9,156,911 1,424,638 494,218 4,265,019 1,849,881 1,123,154 - Component 2 4,209,876 1,487,723 425,985 1,774,090 370,618 151,460 - Component 3 1,905,352 1,905,352 - - - - - Component 4 2,052,446 643,758 202,994 960,891 244,784 20 - Bank charges (Interest Exp. & Ex. Loss) 679 (42) - - - - 721 Total Expenditures (B) 17,325,264 5,461,428 1,123,197 7,000,000 2,465,283 1,274,634 721 RECEIPTS LESS EXPENDITURES Net Change in Cash (A - B) 808,559 - - - 532,922 247,570 28,070 10 Privileged Privileged Information Information Regional Disaster Vulnerability Reduction Project IDA Credit No. 4986-VC; SCF-PPCR Grant No. TF010206; SCF-PPCR Loan No. TF011132; SCF-PPCR Grant No. TF016733; EDF Grant No. TF0A3698 Part C - Previous Year End Cumulative Previous Year End Cumulative (USD) RECEIPTS Actual Source of Financing Total IDA 4986 TF 11132 TF 10206 TF 016733 TF 0A3698 Other (50%) (15%) (35%) Income World Bank Designated Account 12,291,645 4,168,448 1,123,197 7,000,000 - - - Direct Payment 1,292,980 1,292,980 - - - - - Retroactive Financing - - - - - - - Other Income 17,934 - - - - - 17,934 Total Receipts (A) 13,602,559 5,461,428 1,123,197 7,000,000 - - 17,934 LESS EXPENDITURES Component 1 5,232,218 1,424,638 494,218 3,313,362 - - - Component 2 3,622,614 1,487,723 425,985 1,708,906 - - - Component 3 1,905,352 1,905,352 - - - - - Component 4 1,650,976 643,758 202,994 804,224 - - - Bank charges (Interest Exp. & Ex. Loss) 553 (42) - - - - 595 Total Expenditures (B) 12,411,713 5,461,428 1,123,197 5,826,492 - - 595 RECEIPTS LESS EXPENDITURES Net Change in Cash (A - B) 1,190,847 - - 1,173,508 - - 17,339 11 Privileged Privileged Information Information Regional Disaster Vulnerability Reduction Project IDA Credit No. 4986-VC; SCF-PPCR Grant No. TF010206; SCF-PPCR Loan No. TF011132; SCF-PPCR Grant No. TF016733; EDF Grant No. TF0A3698 Statement of Sources and Uses of Funds For the year ended 31 December 2018 with comparative figures of 2017 (Expressed in United States Dollars) Current Period (USD) Previous Period (USD) RECEIPTS Actual 2018 Actual 2017 Source of Financing IDA 4986 TF 10206 TF Other IDA 4986 TF 10206 TF TF Other Total TF 016733 Total (50%) (35%) 0A3698 Income (50%) (35%) 016733 0A3698 Income World Bank Designated Account 2,998,205 - - 2,998,205 1,522,204 - 4,394,177 - 4,394,177 - - - Direct Payment 1,522,204 - - - - - - - - - - - Retroactive Financing - - - - - - - - - - - - Other Income 10,857 - - - - 10,857 3,283 - - - - 3,283 Total Receipts (A) 4,531,266 - - 2,998,205 1,522,204 10,857 4,397,460 - 4,394,177 - - 3,283 LESS EXPENDITURES Component 1 3,924,693 - 951,657 1,849,881 1,123,154 - 2,297,916 42 2,297,874 - - - Component 2 587,262 - 65,184 370,618 151,460 - 678,102 - 678,102 - - - Component 3 - - - - - - - - - - - - Component 4 401,470 - 156,667 244,784 20 - 354,206 - 354,206 - - - Ineligible expenditure - - - - - - - - - - - - Bank charges (Interest 126 - - - - 126 120 - - - - 120 Expense) Total Expenditures (B) 4,913,551 - 1,173,508 2,465,283 1,274,634 126 3,330,344 42 3,330,182 - - 120 RECEIPTS LESS EXPENDITURES Net Change in Cash (A - B) (382,285) - (1,173,508) 532,922 247,570 10,731 1,067,116 (42) 1,063,996 - - 3,163 Foreign Exchange Adjustment BANK BALANCES Opening Cash Balances Designated Account 9016 541,393 533,773 - - 7,620 119,475 - 112,982 - - 6,493 Project Account 135155 649,454 639,735 - - 9,719 4,257 - (3,469) - - 7,726 Total Opening Balance 1,190,847 - 1,173,508 - - 17,339 123,732 - 109,513 - - 14,219 Closing Cash Balances Designated Account 9016 426,011 - - 416,282 - 9,730 541,393 - 533,773 - - 7,620 Project Account 135155 131,673 - - 116,640 - 15,033 649,454 - 639,735 - - 9,719 Designated Account 9064 171,476 - - - 171,497 (21) Project Account 143363 79,398 - - - 76,073 3,325 Total Closing Balance 808,559 - - 532,922 247,570 28,067 1,190,847 - 1,173,508 - - 17,339 12 Privileged Privileged Information Information Regional Disaster Vulnerability Reduction Project IDA Credit No. 4986-VC; SCF-PPCR Grant No. TF010206; SCF-PPCR Loan No. TF011132; SCF-PPCR Grant No. TF016733; EDF Grant No. TF0A3698 Statement of Cumulative Investments For the year ended 31 December 2018 (Expressed in United States Dollars) (Expressed in United States Dollars) Source of finance : IDA Credit Number 4986-VC Year Ended 31 December 2018 Current Year Prior Year Current Year Previous Year Categories Cumulative Cumulative (USD) (USD) (USD) (USD) Actual 2018 Actual 2017 Actual Actual Category 1 : Goods, works, Non-Consulting Services, 42 3,556,119 3,556,119 Consultants Services, Training and Operating Costs for parts A, B and D of the project Category 2 : Goods, Works, Non-Consulting Services and - 1,905,352 1,905,352 Consultants Services for Emergency Recovery and Reconstruction subprojects under Part C of the Project Total - 42 5,461,471 5,461,471 Source of finance : Grant Agreement Number SCF-PPCR Grant Number TF 011132 Year Ended 31 December 2018 Current Year Prior Year Current Year Previous Year Categories Cumulative Cumulative (USD) (USD) (USD) (USD) Actual 2018 Actual 2017 Actual Actual Category 1 : Goods, works, Non-Consulting Services, - - 1,123,197 1,123,197 Consultants Services, Training and Operating Costs for parts A, B and D of the project Total - - 1,123,197 1,123,197 13 Privileged Privileged Information Information Regional Disaster Vulnerability Reduction Project IDA Credit No. 4986-VC; SCF-PPCR Grant No. TF010206; SCF-PPCR Loan No. TF011132; SCF-PPCR Grant No. TF016733; EDF Grant No. TF0A3698 Statement of Cumulative Investments For the year ended 31 December 2018 (Expressed in United States Dollars) Source of finance : Grant Agreement Number SCF-PPCR Grant Number TF 010206 Year Ended 31 December 2018 Current Year Prior Year Current Year Previous Year Categories Cumulative Cumulative (USD) (USD) (USD) (USD) Actual 2018 Actual 2017 Actual Actual Category 1 : Goods, works, Non-Consulting Services, 1,173,508 3,330,182 7,000,000 5,826,492 Consultants Services, Training and Operating Costs for parts A, B and D of the project Total 1,173,508 3,330,182 7,000,000 5,826,492 Source of finance : Grant Agreement Number SCF-PPCR Grant Number TF 016733 Year Ended 31 December 2018 Current Year Prior Year Current Year Previous Year Categories Cumulative Cumulative (USD) (USD) (USD) (USD) Actual 2018 Actual 2017 Actual Actual Category 1 : Goods, works, Non-Consulting Services, 2,465,283 - 2,465,283 - Consultants Services, Training and Operating Costs for parts A, B and D of the project Total 2,465,283 - 2,465,283 - 14 Privileged Privileged Information Information Regional Disaster Vulnerability Reduction Project IDA Credit No. 4986-VC; SCF-PPCR Grant No. TF010206; SCF-PPCR Loan No. TF011132; SCF-PPCR Grant No. TF016733; EDF Grant No. TF0A3698 Statement of Cumulative Investments For the year ended 31 December 2018 (Expressed in United States Dollars) Source of finance : Grant Agreement Number EDF Grant Number TF 0A3698 Year Ended 31 December 2018 Current Year Prior Year Current Year Previous Year Categories Cumulative Cumulative (USD) (USD) (USD) (USD) Actual 2018 Actual 2017 Actual Actual Category 1 : Goods, works, Non-Consulting Services, 1,274,634 - 1,274,634 - Consultants Services, Training and Operating Costs for parts A, B and D of the project Total 1,274,634 - 1,274,634 - 15 Privileged Privileged Information Information Regional Disaster Vulnerability Reduction Project IDA Credit No. 4986-VC; SCF-PPCR Grant No. TF010206; SCF-PPCR Loan No. TF011132; SCF-PPCR Grant No. TF016733; EDF Grant No. TF0A3698 Notes to the Special Purpose Project Financial Statements For the year ended 31 December 2018 1. BACKGROUND The main objective of the Saint Vincent and the Grenadines Regional Disaster Vulnerability Reduction Project (SVG RDVRP) is to measurably reduce vulnerability to natural hazards and climate change impacts in Saint Vincent and the Grenadines and in the Eastern Caribbean Sub-region. The SVG RDVRP in the amount of USD 20.9 million (USD 10.9 million International Development Agency (IDA) credit; USD 7.0 million Strategic Climate Fund Pilot (SCF) Program for Climate Resilience (PPCR12) grant; USD 3.0 million SCF loan) was approved by the Executive Board of Directors on June 23, 2011 and became effective on October 18, 2011, with an original Project closing date of December 31, 2016. In the wake of the December 2013 floods disaster, the Project funding was scaled up by USD 40.6 million (PPCR grant – USD 5 million, unallocated national IDA 16 funds – USD 16.6 million; IDA Crisis Response Window – USD 19 million), effective November 12, 2014. The Project closing date was extended to December 31, 2018 for the PPCR grants and the IDA credits on September 24, 2014 and for the SCL loan on December 29, 2016. The government of SVG subsequently signed agreements with the European Union (EU) and the World Bank to implement the 11th European Development Fund: B-envelope allocations through the RDVRP with a further expansion of the Project funding by USD 6.8 million grant; effective July 31, 2017. The Project finances the following four components: a. Component 1: Prevention and Adaptation Investments, which finances a combination of risk reduction investments and emergency reconstruction activities, prioritized in light of the December 2013 floods; b. Component 2: Regional Platforms for Hazard and Risk Evaluation and Applications for Improved Decision Making, which supports institutional strengthening and capacity building to better collect, manage, and apply climate risk and spatial information in development and planning decision making; c. Component 3: Natural Disaster Response Investments, which is a provisional component that would finance emergency recovery and reconstruction subprojects in the event of a disaster; and d. Component 4: Project Management and Implementation Support, which finances institutional capacity strengthening and operating costs for project management and implementation. 16 Privileged Privileged Information Information Regional Disaster Vulnerability Reduction Project IDA Credit No. 4986-VC; SCF-PPCR Grant No. TF010206; SCF-PPCR Loan No. TF011132; SCF-PPCR Grant No. TF016733; EDF Grant No. TF0A3698 Project management The RDVRP is being implemented by the Public Sector Investment Programme Management Unit (PSIPMU) of the Economic Planning and Sustainable Development Division (EPSDD), Ministry of Finance, Economic Planning, Sustainable Development and Information Technology (MFEP), formerly the Central Planning Division (CPD). Program Cost and Financing for the Regional Disaster Vulnerability Reduction Project Part Component Activity Estimated Cost (USD) A Prevention and Adaptation Investments 36,111,869 B Regional Platform for Hazard and Risk Evaluation, 27,300,000 and Applications for Improved Decision Making C Natural Disaster Response Investments 2,000,000 D Project Management and Implementation Support 2,400,000 Total Project Financing 67,811,869 Source of Finance Source of finance Reference Amount (USD/million) IDA 4986-VC 10.92 IDA 5450-VC 35.6 CIF/PPCR Grant TF010206 7.0 CIF/PPCR Grant TF016733 5.0 SCF Loan TF011132 3.0 EU grant 11th European Development Fund 6.8 17 Privileged Privileged Information Information Regional Disaster Vulnerability Reduction Project IDA Credit No. 4986-VC; SCF-PPCR Grant No. TF010206; SCF-PPCR Loan No. TF011132; SCF-PPCR Grant No. TF016733; EDF Grant No. TF0A3698 2. PRESENTATION OF THE SPECIAL PURPOSE PROJECT FINANCIAL STATEMENTS Basis of preparation These special purpose project financial statements have been prepared in accordance with the International Public Sector Accounting Standard (the "IPSAS") "Financial Reporting under the Cash Basis of Accounting" issued by the Public Sector Committee of the International Federation of Accountants, and incorporate the following principal accounting policies, which have been consistently followed in all material respects and comply with the World Bank's Financial Management Sector Board's "Guidelines: Annual Financial Reporting and Auditing for World Bank Financed Activities" (the "WB Guidelines"). Under the cash basis approach income (or expenditure) is recognized when cash is received (or paid) irrespective of when goods or services are received or provided . a. Statement of compliance These special purpose project financial statements consist of · Statement of Designated Account · Statement of Sources and Uses of Funds · Statement of Cumulative Investments · Significant accounting policies and other explanatory information The reporting currency of these special purpose project financial statements is US Dollars ("USD"). b. Basis of measurement These special purpose project financial statements have been prepared on the historical cost basis. c. Functional and presentation currency The functional currency is United States Dollars (USD). The amounts expended in Eastern Caribbean Dollars (XCD) are converted to United States Dollars (USD) at exchange rate of 2.6882 for XCD. The reporting currency of the project is United States Dollars (USD) Transactions were made in other currencies also like Euro. 3. SIGNIFICANT ACCOUNTING POLICIES a. Cash basis of accounting The special purpose project financial statements are prepared on a cash basis of accounting. The cash basis of accounting recognizes transactions and events only when cash (including cash equivalents) is received or paid by the Project. The special purpose project financial statements prepared under the cash basis provide readers with information about the sources of cash raised during the period, the purposes for which 18 Privileged Privileged Information Information Regional Disaster Vulnerability Reduction Project IDA Credit No. 4986-VC; SCF-PPCR Grant No. TF010206; SCF-PPCR Loan No. TF011132; SCF-PPCR Grant No. TF016733; EDF Grant No. TF0A3698 cash was used and the cash balances at the reporting date. The measurement focus in the special purpose project financial statements is balances of cash and changes therein . b. Foreign Currencies Transactions in foreign currencies other than USD and XCD are translated into United States dollars (USD) at the rate of exchange ruling (Bank of Saint Vincent and the Grenadines) at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the reporting date are translated into United States dollars at the exchange ruling at the date. Foreign currency differences arising on retranslation are generally recognized income / expenditure. c. Funds received Funds received are recognized on the cash basis that is at the time when are received. d. Expenses Expenses are recorded on cash basis that is at the time of payment instead of when incurred. e. Round off The figures have been rounded off to the nearest whole digit. f. Sources of funds The funds were provided by the World Bank to the Project by replenishment of special account or through direct payment to the end supplier of goods and/or services. g. Restricted use of funds and other assets The Credit, Loan and Grant agreements require that the funds available in the Designated Account be restricted to the Project use only. Any project funds available at the end of the Project should be returned to the World Bank. h. Cash and cash equivalents Cash and cash equivalents include cash on hand and due from banks, which can be converted to the corresponding amount of cash in the short term. Cash and cash equivalents as at 31 December 2018 comprise: Account held at: Bank of Saint Vincent and the Grenadines Expressed in United States dollars (USD) IDA TF TF TF TF Net Total 4986 11132 10206 016733 0A3698 Interest Designated Account (Account 426,011 - - - 416,282 - 9,730 Number – 9016) USD Project Account (Account 131,673 - - - 116,640 - 15,033 Number – 135155) XCD Designated Account (Account 171,476 - - - - 171,497 (21) Number – 9064) USD Project Account (Account 79,398 - 76,073 3,325 Number – 143363) XCD 808,559 532,922 247,570 28,067 Cash and cash equivalents as at 31 December 2017 comprise: Account held at: Bank of Saint Vincent and the Grenadines Expressed in United States dollars (USD) 19 Privileged Privileged Information Information Regional Disaster Vulnerability Reduction Project IDA Credit No. 4986-VC; SCF-PPCR Grant No. TF010206; SCF-PPCR Loan No. TF011132; SCF-PPCR Grant No. TF016733; EDF Grant No. TF0A3698 IDA TF Net Total TF 10206 4986 11132 Interest Designated Account (Account Number 541,393 - - 533,773 7,620 – 9016) USD Project Account (Account Number – 649,454 - - 639,735 9,719 135155) XCD 1,190,847 - - 1,173,508 17,339 i. Miscellaneous income Amounts represents non-refundable proceeds paid by bidders for bidding documents: Amounts represents non- refundable Interest Bank Exchange Net Other proceeds paid by Year earned Charges rate loss Income bidders for (B) (C) (D) (A+B-C-D) bidding documents (A) 2012 2,207 390 18 - 2,579 2013 2,024 1,328 111 - 3,241 2014 - 1,407 55 - 1,352 2015 730 2,178 125 - 2,783 2016 2,182 2,206 124 - 4,264 2017 - 3,283 120 42 3,121 2018 10,857 126 10,731 Total 7,143 21,649 679 42 28,070 Bank charges are expensed for issuing monthly bank statements, transfer between accounts and bank balance confirmations. Exchange rate loss occur when cheques / wire transfer denominated in Eastern Caribbean dollars amounts are expensed from United States dollar denominated bank account or vice-versa. 20 Privileged Privileged Information Information Regional Disaster Vulnerability Reduction Project IDA Credit No. 4986-VC; SCF-PPCR Grant No. TF010206; SCF-PPCR Loan No. TF011132; SCF-PPCR Grant No. TF016733; EDF Grant No. TF0A3698 j. Applications to Designated Account Current year request for reimbursement (2018) Request for funds TF 010206 Date Request Number Amount - USD 30th January 2018 RDVRP MF100 - 17th May 2018 RDVRP MF101 - 29th May 2018 RDVRP MF102 - 20th June 2018 RDVRP MF104 - 5th October 2018 RDVRP MF105 - - TF 016733 30th May, 2018 RDVRP MF103 1,314,554 9th October, 2018 RDVRP MF107 1,683,651 2,998,205 TF 0A3698 13th February, 2018 RDVRP TF MF1 1,522,204 1,522,204 Total request for funds 4,520,409 Total received from World Bank 4,520,409 RDVRP MF 100 amounting to USD 343,951 was documented under TF 010206, however the request for reimbursement was made under TF 016733 RDVRP MF 103. RDVRP MF 101 amounting to USD 97,143 was documented under TF 010206, however the request for reimbursement was made under TF 016733 RDVRP MF 103. RDVRP MF 102 amounting to USD 873,460 was documented under TF 010206, however the request for reimbursement was made under TF 016733 RDVRP MF 103. RDVRP MF 104 amounting to USD 168,712 was documented under TF 010206, however the funds were not drawn down under any fund. RDVRP MF 105 amounting to USD 131,336 was documented under TF 010206, however the funds were not drawn down under any fund. 21 Privileged Privileged Information Information Regional Disaster Vulnerability Reduction Project IDA Credit No. 4986-VC; SCF-PPCR Grant No. TF010206; SCF-PPCR Loan No. TF011132; SCF-PPCR Grant No. TF016733; EDF Grant No. TF0A3698 Previous year request for reimbursement (2017) Number Amount - USD Request for funds IDA 4986-VC 20-January-2017 RDVRP MF 81 - 07-February-2017 RDVRP MF 83 - 06-April-2017 RDVRP MF 88 - 01-June-2017 RDVRP MF 91 - - TF 11132 14-February-2017 RDVRP MF 84 - 29-March-2017 RDVRP MF 87 - - TF 10206 23-January-2017 RDVRP MF 82 131,606 23-January-2017 RDVRP MF 85 - 28-February-2017 RDVRP MF 86 189,766 06-April-2017 RDVRP MF 89 365,395 09-May-2017 RDVRP MF 90 492,568 20-June-2017 RDVRP MF 92 194,517 27-June-2017 RDVRP MF 93 382,502 15-August-2017 RDVRP MF 94 257,893 19-September-2017 RDVRP MF 95 359,254 04-October-2017 RDVRP MF 96 302,157 30-October-2017 RDVRP MF 97 400,764 17-November-2017 RDVRP MF 98 1,000,000 06-December-2017 RDVRP MF 99 114,076 4,190,499 Total request for funds 4,190,499 Total received from World Bank 4,190,499 RDVRP MF 80 dated 02-December-2016 amounting to USD 203,678 was received on 11- January-2017. Accordingly, the total funds received during 2017 from World Bank amounted to USD 4,394,177. 22 Privileged Privileged Information Information Regional Disaster Vulnerability Reduction Project IDA Credit No. 4986-VC; SCF-PPCR Grant No. TF010206; SCF-PPCR Loan No. TF011132; SCF-PPCR Grant No. TF016733; EDF Grant No. TF0A3698 RDVRP MF 81 was documented under IDA 4986-VC, however the request for reimbursement was made under TF 10206 RDVRP MF 82. RDVRP MF 83 amounting to USD 75,968 was documented under IDA 4986-VC and RDVRP MF 84 amounting to USD 16 was documented under TF 11132, however the request for reimbursement was made under TF 10206 RDVRP MF 86. RDVRP MF 88 amounting to USD 7,299 was documented under IDA 4986-VC and RDVRP MF 87 amounting to USD 178,891 was documented under TF 11132, however the request for reimbursement was made under TF 10206 RDVRP MF 89. RDVRP MF 91 amounting to USD 42 was documented under IDA 4986-VC, however the request for reimbursement was made under TF 10206 RDVRP MF 92. 23 Privileged Privileged Information Information Regional Disaster Vulnerability Reduction Project IDA Credit No. 4986-VC; SCF-PPCR Grant No. TF010206; SCF-PPCR Loan No. TF011132; SCF-PPCR Grant No. TF016733; EDF Grant No. TF0A3698 (Expressed in United States Dollars) NOTES TO THE SPECIAL PURPOSE PROJECT FINANCIAL STATEMENTS k. Cumulative Investment (Sub-categories) for the year ended 31 December 2018 with previous year comparatives For the year ended 31 December 2018 Part A (Expressed in United States Dollars) Cumulative as at 31 December 2017 Investment Cost IDA 4986 TF 11132 TF 10206 TF 016733 TF 0A3698 Total USD USD USD USD USD USD Goods 3,116,798 345,140 863,657 - - 4,325,595 Non consulting services 5,618 1,193 6,627 - - 13,438 Consulting services 1,830,507 625,806 2,552,539 - - 5,008,852 Trainings 128,542 36,899 131,268 - - 296,709 Monitoring and Evaluation - - 889 - - 889 Operating costs 30,649 7,862 24,299 - - 62,810 Works 349,195 106,176 2,246,973 - - 2,702,344 Bank charges - - - - - 553 Ineligible expenditure (CARCIP) - - - - - - Bank charges on replenishment 120 120 240 - - 480 Exchange Loss 42 - - - - 42 Total investment costs 5,461,471 1,123,196 5,826,508 - - 12,411,713 24 Privileged Privileged Information Information Regional Disaster Vulnerability Reduction Project IDA Credit No. 4986-VC; SCF-PPCR Grant No. TF010206; SCF-PPCR Loan No. TF011132; SCF-PPCR Grant No. TF016733; EDF Grant No. TF0A3698 (Expressed in United States Dollars) NOTES TO THE SPECIAL PURPOSE PROJECT FINANCIAL STATEMENTS Part B For the year ended 31 December 2018 Investment Cost IDA 4986 TF 11132 TF 10206 TF 016733 TF 0A3698 Total USD USD USD USD USD USD Goods - - 4,334 4,871 - 9,206 Non consulting services - - 2,606 2,167 - 4,773 Consulting services - - 247,480 1,096,632 243,886 1,587,998 Trainings - - 18,605 12,247 - 30,852 Monitoring and Evaluation - - - 411 - 411 Operating costs - - 11,527 15,069 7 26,603 Works - - 888,955 1,333,854 1,030,733 3,253,542 Bank charges - - - - - 126 Ineligible expenditure (CARCIP) - - - - - - Bank charges on replenishment - - - 31 8 39 Exchange Loss - - - - - - Total investment costs - - 1,173,508 2,465,283 1,274,634 4,913,551 25 Privileged Privileged Information Information Regional Disaster Vulnerability Reduction Project IDA Credit No. 4986-VC; SCF-PPCR Grant No. TF010206; SCF-PPCR Loan No. TF011132; SCF-PPCR Grant No. TF016733; EDF Grant No. TF0A3698 (Expressed in United States Dollars) NOTES TO THE SPECIAL PURPOSE PROJECT FINANCIAL STATEMENTS Part C Cumulative as at 31 December 2018 Investment Cost IDA 4986 TF 11132 TF 10206 TF 016733 TF 0A3698 Total USD USD USD USD USD USD Goods 3,116,798 345,140 867,991 4,871 - 4,334,801 Non consulting services 5,618 1,193 9,233 2,167 - 18,211 Consulting services 1,830,507 625,806 2,800,019 1,096,632 243,886 6,596,850 Trainings 128,542 36,899 149,873 12,247 - 327,561 Monitoring and Evaluation - - 889 411 - 1,300 Operating costs 30,649 7,862 35,826 15,069 7 89,413 Works 349,195 106,176 3,135,928 1,333,854 1,030,733 5,955,886 Bank charges - - - - - 679 Ineligible expenditure (CARCIP) - - - - - - Bank charges on replenishment 120 120 240 31 8 519 Exchange Loss 42 - - - - 42 Total investment costs 5,461,471 1,123,196 7,000,000 2,465,283 1,274,634 17,325,264 26 Privileged Privileged Information Information Regional Disaster Vulnerability Reduction Project IDA Credit No. 4986-VC; SCF-PPCR Grant No. TF010206; SCF-PPCR Loan No. TF011132; SCF-PPCR Grant No. TF016733; EDF Grant No. TF0A3698 (Expressed in United States Dollars) NOTES TO THE SPECIAL PURPOSE PROJECT FINANCIAL STATEMENTS For the year ended 31 December 2017 Part A (Expressed in United States Dollars) Cumulative as at 31 December 2016 Investment Cost IDA 4986 TF 11132 TF 10206 Total USD USD USD USD Goods 3,116,798 345,140 859,851 4,321,789 Non consulting services 5,618 1,193 2,752 9,563 Consulting services 1,830,507 625,806 1,290,462 3,746,775 Trainings 128,542 36,899 88,665 254,106 Monitoring and Evaluation - - - - Operating costs 30,649 7,862 16,889 55,400 Works 349,195 106,176 237,572 692,943 Bank charges - - - 433 Ineligible expenditure (CARCIP) - - - - Bank charges on replenishment 120 120 120 360 Exchange Loss - - - - Total investment costs 5,461,429 1,123,196 2,496,311 9,081,369 27 Privileged Privileged Information Information Regional Disaster Vulnerability Reduction Project IDA Credit No. 4986-VC; SCF-PPCR Grant No. TF010206; SCF-PPCR Loan No. TF011132; SCF-PPCR Grant No. TF016733; EDF Grant No. TF0A3698 (Expressed in United States Dollars) NOTES TO THE SPECIAL PURPOSE PROJECT FINANCIAL STATEMENTS Part B For the year ended 31 December 2017 Investment Cost IDA 4986 TF 11132 TF 10206 Total USD USD USD USD Goods - - 3,806 3,806 Non consulting services - - 3,875 3,875 Consulting services - - 1,262,077 1,262,077 Trainings - - 42,603 42,603 Monitoring and Evaluation - - 889 889 Operating costs - - 7,426 7,426 Works - - 2,009,401 2,009,401 Bank charges - - 104 104 Ineligible expenditure (CARCIP) - - - - Bank charges on replenishment - - 120 120 Exchange Loss 42 - - 42 Total investment costs 42 - 3,330,302 3,330,344 28 Privileged Privileged Information Information Regional Disaster Vulnerability Reduction Project IDA Credit No. 4986-VC; SCF-PPCR Grant No. TF010206; SCF-PPCR Loan No. TF011132; SCF-PPCR Grant No. TF016733; EDF Grant No. TF0A3698 (Expressed in United States Dollars) NOTES TO THE SPECIAL PURPOSE PROJECT FINANCIAL STATEMENTS Part C Cumulative as at 31 December 2017 Investment Cost IDA 4986 TF 11132 TF 10206 Total USD USD USD USD Goods 3,116,798 345,140 863,657 4,325,595 Non consulting services 5,618 1,193 6,627 13,438 Consulting services 1,830,507 625,806 2,552,539 5,008,852 Trainings 128,542 36,899 131,268 296,709 Monitoring and Evaluation - - 889 889 Operating costs 30,649 7,862 24,315 62,826 Works 349,195 106,176 2,246,973 2,702,344 Bank charges - - 104 537 Ineligible expenditure (CARCIP) - - - - Bank charges on replenishment 120 120 240 480 Exchange Loss 42 - - 42 Total investment costs 5,461,471 1,123,196 5,826,613 12,411,713 29 Privileged Privileged Information Information Regional Disaster Vulnerability Reduction Project IDA Credit No. 4986-VC; SCF-PPCR Grant No. TF010206; SCF-PPCR Loan No. TF011132; SCF-PPCR Grant No. TF016733; EDF Grant No. TF0A3698 (Expressed in United States Dollars) NOTES TO THE SPECIAL PURPOSE PROJECT FINANCIAL STATEMENTS l. Commitments In normal course of activities, the Project concludes agreements with suppliers of goods, works and service in accordance with the established budget and procurement plan. As at 31 December 201, the Project had the following commitments: Financial Total Contract Contract Contract Contract Date of Progress Contractor/Consultant Activity Contract Amt. Due Amt. Due Reference Currency Contract (Dec 31, Value (XCD) (USD) 2018) Slope stabilisation works at Ginger Dipcon Engineering Ltd. 1305/2017 XCD 3,821,822.77 28-Apr-19 2,233,163.39 1,588,659.38 Village Design for the rehabilitation of the 1100/2018 10-Apr-18 DLN USD 538,458.00 150,311.80 388,146.20 Chateaubelair jetty 3380/2018 26-Oct-18 Re-construction of Clifton Water Franco Construction 4069/2016 XCD 1,585,231.53 23-Dec-16 1,459,582.38 125,649.15 Tank 405/2014 10-Feb-14 2428/2014 25-Aug-14 Design and supervision of two TVA 358/2015 XCD 319,067.68 10-Feb-15 314,136.98 1,588,659.38 satellite warehouses 964/2016 25-Feb-16 4016/2017 20-Dec-17 Construction of Rose Hall satellite Franco & Williams 508/2017 XCD 1,004,745.22 28-Feb-17 941,050.11 63,695.11 warehouse Design and supervision of TVA 2558/2014 XCD 335,068.68 4-Sep-14 325,653.92 9,414.76 emergency shelters Rehabilitation of emergency Sea Operations shelters: Dorsetshire Hill 2782/2016 XCD 1,705,408.73 25-Aug-16 1,579,039.76 126,368.97 Government School Design review and supervision of 4 2877/2016 31-Aug-16 Stewart Engineering XCD 535,453.87 152,799.98 382,653.89 satellite warehouses 1945/2018 27-Jun-18 Irvine Interior & Construction of satellite warehouses: 1179/2018 XCD 1,005,510.84 25-Apr-18 271,426.77 734,084.07 Construction Lot 2 – Mesopotamia Construction of satellite warehouses: Williams Engineering 1182/2018 XCD 1,035,763.90 25-Apr-18 314,245.47 721,518.43 Lot 3 – Georgetown Construction of satellite warehouses: Franco Construction 1070/2018 XCD 1,600,367.78 16-Apr-18 445,988.13 1,154,379.65 Lot 4 - Union Island Designs for a Referral Hospital in 587/2018 28-Feb-18 Pinearq Mallol USD 1,296,760.00 216,276.51 1,080,483.49 Saint Vincent and the Grenadines 2946/2018 13-Sep-18 30 Privileged Privileged Information Information Regional Disaster Vulnerability Reduction Project IDA Credit No. 4986-VC; SCF-PPCR Grant No. TF010206; SCF-PPCR Loan No. TF011132; SCF-PPCR Grant No. TF016733; EDF Grant No. TF0A3698 (Expressed in United States Dollars) NOTES TO THE SPECIAL PURPOSE PROJECT FINANCIAL STATEMENTS Financial Total Contract Contract Contract Contract Date of Progress Contractor/Consultant Activity Contract Amt. Due Amt. Due Reference Currency Contract (Dec 31, Value (XCD) (USD) 2018) 1729/2015 13-Jul-15 348/2016 28-Jan-16 EUR 1,094,250.10 1816/2016 6-Jun-16 Design and construction supervision 1730/2017 25-Apr-17 Egis Eau 794,580.19 461,837.77 of rivers, bridges and fords 1284/2018 30-Apr-18 3585/2018 15-Nov-18 (USD) 1,256,417.96 59/2019 7-Dec-18 174/2019 20-Dec-18 OB Sadoo Engineering Construction of South River Bridge 26/2017 XCD 1,697,675.00 3-Jan-17 1,429,102.63 268,572.37 Construction of Bridges and Fords – Franco Sea Operations North River Embankment 321/2018 XCD 1,620,036.27 30-Jan-18 658,431.66 961,604.61 Protection Construction of Bridges and Fords – Franco Sea Operations 336/2018 XCD 635,973.71 1-Feb-18 274,752.86 361,220.85 South River Embankment Protection River defense and drainage improvement works at Arnos Bally & Bally Investments 358/2018 XCD 446,799.69 29-Nov-18 89,355.77 357,443.92 Vale/Warrowwarrow River, Estuary - Lot 1 River defense and drainage 2947/2018 10-Sep-18 improvement works at Arnos Franco Sea Operations XCD 2,832,831.39 566,581.16 2,266,250.23 Vale/Warrowwarrow River, Estuary 3584/2018 4-Dec-18 - Lot 2 River defense and drainage improvement works at Arnos OB Sadoo Engineering 2319/2018 XCD 163,328.00 6-Aug-19 - 163,328.00 Vale/Warrowwarrow River, Estuary - Lot 3 Design and supervision Grand Sable 1944/2018 25-Jun-18 AIC Progetti USD 779,694.80 93,424.20 686,270.60 and Longline Road 2983/2018 2-Oct-18 FDL Consult Supervision of works - Firebun Road 2838/2018 XCD 302,760.00 3-Oct-18 - 302,760.00 Construction of Firebun Feeder OB Sadoo Engineering 2840/2018 XCD 2,267,639.92 19-Sep-18 - 2,267,639.92 Road Design & supervision 2984/2018 8-Oct-18 Alpha Engineering USD 783,721.84 32,960.37 750,761.47 Buccament/Carriere river Defenses 3356/2018 9-Nov-18 Geotech Associates Design and supervision of slope 2012/2014 USD 1,793,329.55 16-Jul-14 754,347.00 1,038,982.55 31 Privileged Privileged Information Information Regional Disaster Vulnerability Reduction Project IDA Credit No. 4986-VC; SCF-PPCR Grant No. TF010206; SCF-PPCR Loan No. TF011132; SCF-PPCR Grant No. TF016733; EDF Grant No. TF0A3698 (Expressed in United States Dollars) NOTES TO THE SPECIAL PURPOSE PROJECT FINANCIAL STATEMENTS Financial Total Contract Contract Contract Contract Date of Progress Contractor/Consultant Activity Contract Amt. Due Amt. Due Reference Currency Contract (Dec 31, Value (XCD) (USD) 2018) stabilisation works 1582/2015 15-Jun-15 1674/2017 16-Jul-16 1758/2018 25-May-18 Irvine Interior & Slope stabilization works – German 1961/2017 19-Jun-17 XCD 1,351,709.32 1,028,537.58 323,171.74 Construction Gutter 2083/2017 4-Jul-17 Slope stabilization works – English 1962/2017 19-Jun-17 Bally & Bally Investments XCD 2,290,108.56 2,068,601.06 221,507.50 Gutter 2082/2017 4-Jul-17 629/2017 28-Feb-17 Design and supervision of Coastal Mott Mc Donald Works at Georgetown, Sans Souci 137/2018 USD 938,086.64 10-Jan-18 221,610.00 716,476.64 and Dark View 610/2019 1-Oct-18 Preparation of the draft final Derrick Oderson 1039/2018 USD 90,000.00 18-Apr-18 16,297.00 73,703.00 National Physical Development Plan Climate Change Policy, Strategy and CANARI 1732/2018 XCD 241,938.00 1-Jul-18 - 241,938.00 Implementation Strategy 30/2015 8-Jan-15 Consultant to upgrade the ECN of John Melville 258/2016 XCD 636,130.26 25-Jul-16 206,093.54 430,036.72 NEMO 2287/2017 1-Jan-17 662/2018 8-Mar-18 Lystra Culzac Rapid Avian Assessment XCD 15,994.79 15,994.79 - 981/2018 26-Mar-18 SARB Associates Project Audits 3027/2018 USD 95,171.73 24-Sep-18 46,984.63 48,187.10 1557/2016 26-May-18 Richard MacLeish Project Coordinator XCD 459,680.00 459,680.00 - 1234/2018 1-May-18 2309/2015 17-Aug-15 Cecil Harris Senior Engineer XCD 996,722.61 996,722.61 - 2288/2017 28-Jul-17 Mervy Thornille Senior Quantity Surveyor 542/2017 XCD 304,869.00 10-Feb-17 304,869.00 - Shineco Sutherland Procurement Assistant 3156/2016 XCD 108,000.00 1-Oct-16 108,000.00 Noretta John Procurement Assistant 4068/2016 XCD 124,176.00 3-Jan-17 124,176.00 - 32 Privileged Privileged Information Information Regional Disaster Vulnerability Reduction Project IDA Credit No. 4986-VC; SCF-PPCR Grant No. TF010206; SCF-PPCR Loan No. TF011132; SCF-PPCR Grant No. TF016733; EDF Grant No. TF0A3698 (Expressed in United States Dollars) NOTES TO THE SPECIAL PURPOSE PROJECT FINANCIAL STATEMENTS Financial Total Contract Contract Contract Contract Date of Progress Contractor/Consultant Activity Contract Amt. Due Amt. Due Reference Currency Contract (Dec 31, Value (XCD) (USD) 2018) Jenieve Cato Contract Management Assistant 537/2017 XCD 99,000.00 1-Mar-17 99,000.00 - Yannick Nash Contract Management Assistant 975/2018 XCD 38,357.14 1-Mar-18 31,811.70 6,545.44 33 Privileged Privileged Information Information Regional Disaster Vulnerability Reduction Project (RDVRP) IDA Credit No. 4986-VC; SCF-PPCR Grant No. TF010206; SCF-PPCR Loan No. TF011132; SCF-PPCR Grant No. TF016733; EDF Grant No. TF0A3698 Saint Vincent and the Grenadines Additional Information to the Special purpose Project Financial Statements For the year ended 31 December 2018 34 Privileged Privileged Information Information CONTENTS Table of Contents Page Independent Auditor’s Report on Internal Controls 36 Independent Auditor’s Report on Compliance 38 Independent Auditor’s Report on Paid Application for Withdrawal 39 Independent Auditor’s Report on Designated Account Statement 40 Summary of Main Procedures Performed 41 35 Privileged Privileged Information Information SARB & Associates CHARTERED ACCOUNTANTS 404, Second Floor, Patparganj Industrial Area, New Delhi - 110092, India Tel: +91-11-45639681 | Email: info@sarb.co.in | Website: www.sarb.co.in Independent Auditors’ Report on Internal Controls To the GOSVG Ministry of Finance and Economic Planning Regional Disaster Vulnerability Reduction Project, IDA Credit No. 4986-VC; SCF- PPCR Grant No. TF010206; SCF-PPCR Loan No. TF011132; SCF-PPCR Grant No. TF016733; EDF Grant No. TF0A3698 We have completed our audit of the financial resources managed during the year ended December 31, 2018 under the Regional Disaster Vulnerability Reduction Project, IDA Credit No. 4986-VC; SCF-PPCR Grant No. TF010206; SCF-PPCR Loan No. TF011132; SCF-PPCR Grant No. TF016733; EDF Grant No. TF0A3698 (the project). Our responsibility is to express an opinion on the Project’s Internal Control based on our audit. We conducted our audit in accordance with International Standards on Auditing, the World Bank Guidelines on the Project and the Terms of Reference for the engagement. International Standards on Auditing and World Bank Guidelines require that we plan and perform the audit to obtain reasonable assurance as to whether the financial statements are free of material misstatement. In planning and performing our audit, we considered the Project’s internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the Statement of Sources and Uses of Funds and not to provide assurance on the internal control structure. The project’s management is responsible for establishing and maintaining an adequate internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of control procedures. The objectives of an internal control structure are to provide management with reasonable but not absolute assurance that assets are safeguarded against losses from non-authorized uses or disposition and that transactions are executed according to management authorization and are adequately recorded in order to permit preparation of the financial statements in conformity with International Financial Reporting Standards and the project Agreement. Because of inherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not be detected. For the purpose of this report, we have classified significant policies and procedures relative to the Project’s internal control structure into the entity level controls, which is the overall general control environment and specific control procedures which relates in various systems and application controls. These included controls over procurement of goods and services, receipts and disbursements, cashbook and bank account maintenance, the maintenance of proper accounting records and timely reporting of management and financial information. 36 Privileged Privileged Information Information SARB & Associates CHARTERED ACCOUNTANTS 404, Second Floor, Patparganj Industrial Area, New Delhi - 110092, India Tel: +91-11-45639681 | Email: info@sarb.co.in | Website: www.sarb.co.in Independent Auditors’ Report on Internal Controls (Cont’d) For each of the categories listed above, we obtained an understanding of the design and implementation of controls and the relevant policies and procedures and guidelines established by management in respect of the various controls in order to determine whether they have functioned efficiently during the period under review and assess the control risks. A material weakness is a reportable condition in which the design, implementation; or effectiveness of elements of the internal control structure do not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the financial statements being audited, may occur and not be detected. Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that would be material weakness as defined above. Internal control deficiencies identified during the audit have been included in our internal control memorandum (management letter). The management letter also provides the current status of recommendations made in prior audits. Bhushan Agrawal, Partner Membership Number: 408037 SARB & Associates CHARTERED ACCOUNTANTS Firm Registration Number: 017437C Date: 27/05/2019 Place: Delhi 37 Privileged Privileged Information Information SARB & Associates CHARTERED ACCOUNTANTS 404, Second Floor, Patparganj Industrial Area, New Delhi - 110092, India Tel: +91-11-45639681 | Email: info@sarb.co.in | Website: www.sarb.co.in Independent Auditors’ Report on Compliance To the GOSVG Ministry of Finance and Economic Planning Regional Disaster Vulnerability Reduction Project, IDA Credit No. 4986-VC; SCF-PPCR Grant No. TF010206; SCF-PPCR Loan No. TF011132; SCF-PPCR Grant No. TF016733; EDF Grant No. TF0A3698 We have completed our audit of the financial resources managed during the year ended December 31, 2018 under the Regional Disaster Vulnerability Reduction Project, IDA Credit No. 4986-VC; SCF-PPCR Grant No. TF010206; SCF-PPCR Loan No. TF011132; SCF-PPCR Grant No. TF016733; EDF Grant No. TF0A3698 (the project). Our responsibility is to express an opinion on the Project’s compliance with the terms of the Project Agreement based on our audit. We conducted our audit in accordance with International Standards on Auditing, the World Bank Guidelines on the Project and the Terms of Reference for the engagement. International Standards on Auditing and World Bank Guidelines require that we plan and perform the audit to obtain reasonable assurance about whether the Project has complied with the terms of the Project Agreements. In our opinion, the project has in all material respects complied with the terms of the Project agreements for the year ended 31 December 2018, except as disclosed in the Report on Internal Controls Memorandum (Management Letter). Bhushan Agrawal, Partner Membership Number: 408037 SARB & Associates CHARTERED ACCOUNTANTS Firm Registration Number: 017437C Date: 27/05/2019 Place: Delhi 38 Privileged Privileged Information Information SARB & Associates CHARTERED ACCOUNTANTS 404, Second Floor, Patparganj Industrial Area, New Delhi - 110092, India Tel: +91-11-45639681 | Email: info@sarb.co.in | Website: www.sarb.co.in Independent Auditors’ Report on Paid Applications for Withdrawal To the GOSVG Ministry of Finance and Economic Planning Regional Disaster Vulnerability Reduction Project, IDA Credit No. 4986-VC; SCF- PPCR Grant No. TF010206; SCF-PPCR Loan No. TF011132; SCF-PPCR Grant No. TF016733; EDF Grant No. TF0A3698 We have completed our audit of the financial resources managed during the year ended December 31, 2018 under the Regional Disaster Vulnerability Reduction Project, IDA Credit No. 4986-VC; SCF-PPCR Grant No. TF010206; SCF-PPCR Loan No. TF011132; SCF-PPCR Grant No. TF016733; EDF Grant No. TF0A3698 (the project). Our responsibility is to express an opinion on the Project’s Paid Applications for Withdrawal based on our audit. We conducted our audit in accordance with International Standards on Auditing, the World Bank Guidelines on the Project and the Terms of Reference for the engagement. International Standards on Auditing and World Bank Guidelines require that we plan and perform the audit to obtain reasonable assurance about whether the Project has complied with the terms of the Project Agreements. As part of obtaining reasonable assurance as to whether the financial statements are free of material misstatement, we performed tests on the expenditure included in the Paid Applications for Withdrawal. These included testing eligibility, compliance with applicable Project Agreements and internal control procedures. In our opinion, the expenditures included in the Paid Applications for Withdrawal are eligible, the funds have been used only for Project purposes in accordance with the requirements established in the Project Agreement, and the internal control procedures used in the preparation of the Paid Applications for Withdrawal are adequate, except as disclosed in the Report on Internal Controls Memorandum (Management Letter). Bhushan Agrawal, Partner Membership Number: 408037 SARB & Associates CHARTERED ACCOUNTANTS Firm Registration Number: 017437C Date: 27/05/2019 Place: Delhi 39 Privileged Privileged Information Information SARB & Associates CHARTERED ACCOUNTANTS 404, Second Floor, Patparganj Industrial Area, New Delhi - 110092, India Tel: +91-11-45639681 | Email: info@sarb.co.in | Website: www.sarb.co.in Independent Auditors’ Report on the Designated Account Statement To the GOSVG Ministry of Finance and Economic Planning Regional Disaster Vulnerability Reduction Project, IDA Credit No. 4986-VC; SCF-PPCR Grant No. TF010206; SCF-PPCR Loan No. TF011132; SCF-PPCR Grant No. TF016733; EDF Grant No. TF0A3698 We have audited the accompanying Designated Account for the year ended December 31, 2018 under the Regional Disaster Vulnerability Reduction Project, IDA Credit No. 4986-VC; SCF-PPCR Grant No. TF010206; SCF-PPCR Loan No. TF011132; SCF-PPCR Grant No. TF016733; EDF Grant No. TF0A3698 (the project). Our responsibility is to express an opinion on the Project’s Special Account based on our audit. We conducted our audit in accordance with International Standards on Auditing, the World Bank Guidelines on the Project and the Terms of Reference for the engagement. Those standards and the World Bank Guidelines require that we plan and perform the audit to obtain reasonable assurance as to whether the Project has complied with the terms of the Agreement. An audit includes examining appropriate evidence on a test basis. We believe that our audit provides a reasonable basis for our opinion. As part of obtaining reasonable assurance as to whether the financial statements are free of material misstatement, we performed tests on the expenditure included in the Paid Applications for Withdrawal. These included testing eligibility, compliance with applicable Project Agreements and internal control procedures. In our opinion, the Designated Account Statement presents fairly in all material respects, the financial position of the Designated Account of Regional Disaster Vulnerability Reduction Project, IDA Credit No. 4986-VC; SCF-PPCR Grant No. TF010206; SCF-PPCR Loan No. TF011132; SCF-PPCR Grant No. TF016733; EDF Grant No. TF0A3698 as of 31 December 2018 and of the Sources and Uses of Funds for the year ended 31 December 2017 in accordance with World Bank Guidelines. Bhushan Agrawal, Partner Membership Number: 408037 SARB & Associates CHARTERED ACCOUNTANTS Firm Registration Number: 017437C Date: 27/05/2019 Place: Delhi 40 Privileged Privileged Information Information SARB & Associates CHARTERED ACCOUNTANTS 404, Second Floor, Patparganj Industrial Area, New Delhi - 110092, India Tel: +91-11-45639681 | Email: info@sarb.co.in | Website: www.sarb.co.in Summary of Main Audit Procedures Performed Regional Disaster Vulnerability Reduction Project, IDA Credit No. 4986-VC; SCF-PPCR Grant No. TF010206; SCF-PPCR Loan No. TF011132; SCF-PPCR Grant No. TF016733; EDF Grant No. TF0A3698 1. Planning a) We performed the followings: · Understanding the project and its environment by going through Project Appraisal Document, Operational Manual; and World Bank Procurement Guidelines. · Understanding the nature and characteristics of internal controls relevant to the audit and components of internal controls. · Assessed the risk of material misstatement at both financial statements level and assertion level. b) Conducted entrance and exit meetings with senior staff and management of the Project Coordinating Unit. c) Development of overall audit strategy and audit plan, determining the nature, timing and extent of the audit procedures for each class of transactions, accounts and disclosures. d) We held interviews with the Project Coordinator, Senior Financial Management Analyst, Procurement Specialist, and Engineer - PSIPMU. 2. Evaluating Internal Control We performed the test of controls on the following areas: a) Compliance with applicable legislation b) Receipt and disbursements of project funds c) Designated and Project Bank account reconciliations d) Safeguarding of assets e) Data retention and supporting documentation f) Procurement of goods, works and services 3. Substantive audit procedures performed We performed the following substantive audit procedures in order to verify the existence, accuracy and completeness of the following: I. Cash and bank balances a) Confirmed bank balances at 31 December 2018. b) Obtained copies of bank reconciliation statements for all bank accounts at 31 December 2018 and performed the following audit procedures: 41 Privileged Privileged Information Information SARB & Associates CHARTERED ACCOUNTANTS 404, Second Floor, Patparganj Industrial Area, New Delhi - 110092, India Tel: +91-11-45639681 | Email: info@sarb.co.in | Website: www.sarb.co.in · We tested each bank reconciliation for mathematical accuracy; · Agreed general ledger balance as per reconciliation statement to general ledger for each bank account; and · Agreed bank balance shown on the bank reconciliation statement to the bank statement. II. Verification of funds received from the World Bank a) Examined credit advices for funds received during the period under review. b) Examined monthly bank statements to verify whether amounts received were credited to the appropriate account and included in the bank balance. c) Confirmed funds disbursed by the World Bank. d) Trace the amount received to the bank statement. III. Verification of expenditure a) We verified 90% of the expenditure listed in the financial statements to their supporting documentation. b) The items examined were agreed to invoices, receipts and forms of external documentation except as disclosed in the Report on Internal Controls Memorandum (Management Letter). c) We have reviewed all requests for reimbursements during the period. IV. Verification of other income a) We examined the bank statements to verify all interest earned during the period and tested the accuracy of interest earned. b) Reviewed all external supporting documentation for miscellaneous income. V. Verification of the procurement process a) We examined the World Bank Procurement Guidelines. b) Tested the procurement procedures for contracts tendered during the period. VI. Follow up on the status of findings of previous audit reports We verified that audit recommendations of previous audits are being corrected/ not corrected. 42 Privileged Privileged Information Information