PACIFIC ISLANDS FORUM SECRETARIAT PACIFIC RESTT.NCE PROGRAM (PREP) SPECTAL PRPOSE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 20k8 Pacific Islands Forum Secredarial Pacific Resilience Progi-am (PREP) Special Purposc Financial Statements For ihe year ended 31 Deceiher 2018 INDEX Page No. 11 Identification 2--) Tiwroduction 4 Statenent by ScrewL iry (icnrcnl 5-7 Special Purpose Audilor- Rcport R Statement of Incone and Expenditure 9 S(ilement i r IrTiaTial Posidiï 10-11 Notes to and forrning part oi' ih upecil p1r-posC fiTiaricial saLanrlTl s Pacific IsLiindm Foru rn Secretariat Pm>i lic Resilience Progran (PREP) Special Purpose Financial Statements For the year ended 31 December 2018 kientificatiokf PACIFiC R ESII ,INCIi PROGRAM (PREP) ComI, oC201 8 Worik Programme: FJD 812,736 Finds received duiing iie-iod under rev[ew: FJ 1) 1,239517 Organisaion LT1IIr review: Pdeific Islands Forum Sec=tariat A udil team in chlarge of the visit: Kaushick Chandra Engagem ent Leader Fcbriyeiiii Moein 75-4P, which establishes that: "the Financial Statememis aic perindically audited by independent audilors acceptable to tle World Bank, in aceordance with conisisleni ly applied auditing standards acceptable to World Rank._ The contractiaL basis for Ihe implementation of the "PACIFIC RESiJLIVNCE IRO(RAM (PRIHP)" project includes: a) Financ ing AgrenieTil nID (iiantI N Limber D075-4P and its annexes. b) PIPS Grant Agreement PREP GEFTF 8AOR87 c) General ConditiLns (Financing Agreement) d) Standard Conditions (G ratt AgreeIent) 1 Pacific Islands Vorum Secretariat Pacific Itemilience Programi (PREP) Special Purpose Financial Statemnents For the yeur enled 31 December 2018 1 iitrodu ei on Profile of the beneficeky The Paci lie [slaids oruLim ("the For'n'), formerly the South Pacitic Fortum ini i u name change in Ociobei- 2000, was [ounded in August 1971 and compises l X cOnTrics and territories in the PaCiFIC The FVnrLITm iS hU region s premijer politicaI and economic policy organ oii on ormiri Leaders mect an nual ly to develop Colleccive res polises to regional issuvs. The Forum's meTlbership has inereased from the original seven louding members (Auslrfla, Cok Islands, Fiji, Naur, New Zealand, 'Tnga 21TI WCSLCIn Samoa - now Samoa) to also include the Federated States of MicrFnesa r e n c h P o 1 y n e s i a , Kiribati, N e w Ca C e1 on ia, Ni uc, Republ ic of the Marshal l Islarids- Palau, Papua New ( iLiTica, SolFnix Islands, Ttuvalu and Vanuatu. The Forum's adminisTiraLive arm is tle Pacific Islands Forum Secretariat ("the Secretariat"), based in Suva, Fiji. It auts as the seerelaria for li-Lin-i-elated events, implements decisions by the leaders, ficilitates the dlivery of development assistance t o mCM ber sia t es ,1 ; Td U1n TerLak C s t h e politiCal and legal murIdales or ForuiInil meetings. Tb1C Secretr-ial k fLnded by contributions from the member govermnents and donors. The Secretariats' mission is Lo honour the vision of Ilie Leaders for fe and worthwhile lives for all Pacific people Ihrough deCper 11TRI broader regional cooperaton. Rellabillty of accouNifä>g and intniial comirol systens Thie Vi nariee Seetion of the Secretariat adminislers ihe tccokun(ing for [be projcct's expendiLLir Th1e S creLariai adopLs a fund accounting system, as a coisiderable laTL ol i0 s :imlnni rUVCTILUC coIT1priS M itid vidual grats or donations for the specified projects. The Secretariat is responsible for Lhe preparation and presentation of the financial statemnents and the informution coniinced therein, and have deterinined that the accounting polies used are appropriac Cor aind consislent wifh the financial reporting requirements of the donor. 2 Pacifie Islands Forum Sec retairiat Pac ifie Res ilie nce P rog vmi (1P F, P) S pecial 1 u rpse f rh anl cial Sta te Inents For tfie ycar ended 31 Deceinber 20 IR Objectives of ie Project 'lbe overall objective of the projeCI iS to CO1TrbLLtie to strengtlien early warning, resilient invs-ments mitid financial protection ollhe Pavlicipating Countries. Expecied resules There are two expected results o 0lie proice, L1These are: 1) Carrying out a program o aclivities designed to swengthen regional coordination of dissTr risk financing insuranec [nd related instruments among Participating Countries; 2) Implerentilg a (vc-pointrategy to strengthen disaster risk finance and insurunce capucily of PairticipaniTig COLirLdCS Diration: The duration of project is 21 Oct(obe;r 201 5 to 30 November 2020 (61 mnonths). As shown in the attached speciil purposC financial sttements fdr the year ended 31 December 201 S * Projevt rundiig received dUring the period was FJ) 1,238,517 SPrqj ect rclaled e x penditure totaled FJD 812,736 Signd fr- 1nd on behalf of the Pacific Islnds Forum SCretariat by its duly authorized officer. 30/5/2019 Meg TayLor, DBF Date Secretarv General Pacific Islands Forun Secrutariat .3 Paeile IsIands Forum Secretariat Pacifle ResiLience Program (PRIP) Special Purpiose Iinancial Statenents For the year ended 31 December 2018 STATEMENT BY SECRETARY GVI,ALRI. In the opinion of tlie SeGrettry (iencil: ai) Lbe accolripaniying statement of incotne and expendituie retlects ihe ilcoin(:Q aild expen(i luiree [fhe PZli 1 Resilience Program [PREP i Project foir the yr ended 31 DecCmber 201 8 and Liey are in agre t witli the Financing Agrcemeri rai Number ID075-IP and the Global Environment Facility Special Clonate Change Fund Granl. Agemirient l /SCCF Grant Number TFAOA0887. b) the accompanying statemenl ofl 'nnial pI»iLin 1LfleCtl te Sate of Ile Project's affåirs for die Paciric Resiliciie Priogrm F¯PREP] Project as at 31 December 2018 and they are in agreement with the Financing AgrmL CTI 1Tait Number D075-1 P and the Global Environmert Facility Special Climate Change Fund Grant A Reeiment G EFSCCF Gra nt Number TFAC 0A 088 7. S igned for and on behlf eol' dhe IN fic Ilands IorLtm Sccrariat by tss duly author]zed officer. 30/5/2019 Meg Tåylor, DBE DaLe Secretary General P Nfci mri lshads Forui Secretarlat 4 pwC Special Purpose Auditor's Report To the Pacific Islands F1orum Seeetariat ("Secretariat") Report on die Speeial Purpose Financial Statements Opinion We have audited the accompanying special purpose financial statements (referred hercafler as "financial staterents") of the Pacific Resilience Programme (the I>roject'), whiich comprise the statemeit oftfinancial position of the Project as at 3 1 December 2018 and the statement of income and expenditure for the year then ondeid and nlotes lo the financial statements, incluling a summary of s igni fi cant account.ing pol icies. In our opinion, the accompanying financial statemenis are prepared, in all material respects, in accordarice with tho accounting policies as described in Note I to the financial statements. In our opin ion, the Seeretariat has: - adherec to the contractual requirements of the Fi nancing Agreement - Grant Nunber DO75 - 4P and the Global lEnvironment Facilty Special Climate Change Fund Grant Agreenent - GEL/SCCF Grant Number TFAOAO887 - used the project fiunds exclusively for ic purposes of tho Projet in accordance with the I inanciiig Agreenent - Grant Nuimber D075 4P and the Global Environment Facilit Spec ial Cli mate Change Fund Grant Agreement - GEF/SCCF Grant Nu imber TFAOAO87 Basisfor Opinion We conducLted our audå in accoriance with International Standards on Auditing (ISAs) Our responsibi [it ies under tho se standards are further described in tie Auditor's Rosponsibil ities för the Audit of the Financial Staternents section of our report We believe that the audit evidence we have obtained is suffic-lent and appropriate to provide a basis for our opinion. Indepedw ene, Wo are independent of the Project in accordance with the ethical requirements of the International Ethies Standards Board för Accountant s Code of Etiics for Professional Accountants (IESBA Code) that are relevant to our audit of ilie ftiancial statements in F iji, and we have fulfilled our other ethical responsibilities in accordance with Ihese rcqiiiremets and the IESBA Code. PricewaterhousCoopr .eiefd s Civie: rm mu, 272 Hunrä Paorade, Suva. FilÉ CPO Box 200, Suva. Ffi. 'r (6795331395 5 3i99 F (679) 3300947 L pwc EmAhasis of Matter - Basis of acco uning We draw attention to Note 1 to the financial staterents, which doscribes the basis of accounting. The financial statements are prepared in accordance with the accounting policies described in Note I to the financial statements. As a result, the financial statements may not be suitable for another purpose. Our opinion is not modified in respect to this matter. Secrutricl 'S Responsib iltY for the financial statemenis The Secretariat is responsible for the preparation of the financial statements in accordance with the accounting pol icies as described in Note I to the financial statements, and for such internal control as the Secretariat determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Secretarial is responsible for assessing the Proj ect's ability to continue as a going concern, disclosing. as applicable, matters related to going concern and using the going concern basis of accounting unless the Secretariat either intends to liquidate ihe Projeet or to eease operations, or has no realistic alternative but to do so- The Secretariat is responsible for overseeing the Project's financial reporting process. Auditor 's Responsibilities f the Audit of the Financial Satements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole is free from material misstatement whether dut to fraud or error, and to issue an auditor's report that includcs our opinion. Reasonable assurance is a high level of assurancc, but is nol a guarantec that an aLdit conduc ted in accordance with the ISAs wi II always detect a material miss tatement 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 eonomic decisions of users taken on the basis of these financial statements. As part of an audit inl accordance with the ISAs, we exercise professional judge.ment and maintain professional scepticism throughout the audit. We 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 evidenc 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 crror, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override or internal control. * Obtain an understanding of internal control relevant to the audit in orderto design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Projeut's internal control, JL pwc * Evaluate the appropriateness of accoiti ng policies used and the reasonableness of accounting estimates and related disclosures made by Seeretariat. * Conclude on the appropriateness of Secretariatfs use of the going conceni basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may east significant doubl on the Projects ability to continue as a going concern [f we conelude that a material incertainty exists. we are requirecl to draw altention in our ajlitor' s report to the related disclosures in the financial statements or, if sich diselosires are inadequate. to modify our opinion. Our conclusions are hased on the audit evidence obtained up to the date of our auditor's report. However, future evnts or conditions may cause the Project to cease to continue as a going concern. We cornmunicate with the Secretariat regarding, among other inatters, the planned seope and timiing of the audit and significant audit findings, including any significant deficiencies in internal conirol that we identify during our audit. Restriction (n Use This report is made solely to the Seeretariat. OLr audit work has been Undertaken so thal we might state to the Seoretariat those Imatters wc are requi red to state to them in an aud itor-s report and for no other purpose. To the fullest exteni permitted by law, we do not accept or assume responsibility to anvorne other than the Secretariat for our audit work, for this repor(, or for the opinions wc have formed, Q-- Maj 4 01 6" N- 30 MI9 201 P rieewaterh nu seConpers Suva, Fiji Churtered Accountan s Pacific Islan(Ls Forum Secretariat Pacific Resilience Program (PR EP) Statement of Income and Expenditure For the year endede 31 Deceni ber 20 l8 2018 2117 FJID FJD) Ineomne Specil Clieti Change Fund (rant 124. 891 29,000 International Developnent A ssoclLiol (mmTi1 813.626 154,4 1 7 I'lal Tilconle 1.238,517 1S3,417 Expcncliture - Adninislrulion CCoSt 2,790 1,782 Audit fees - current year 7,352 6.496 - priir year overpiovision (205) C7onshIantcy cot - ioriuLaritx ICeS 592,580 389,458 - COISultaits a[ifares 541018 43,863 - conultSaiCIeommodat1i1 28,853 28,259 - constultainis per diems [8,988 16,630 - comiiutltlnt's seCL1ity & odier charges 2,404 744 Meeting/workshops 30,203 1,4 [ 9 Participants airi res 2293.1 12,532 Participants acc oinmo dat [ins 9,093 26,969 PltrlicipaT1lk per d[ms 6,439 14,868 Priraing & suiohneiy 6,892 [,399 ComipuLte]' el iipmneiiL 30,190 Total expenditure 812,736 574,214 Sur plus/ (Deficit) for the year 425,791 (390,797) Deficit at the heginning il' ilie year (415,730) (24,933) Acciimulaled surpilus/(deficit) at tle end of the year 10,051 (415,730) The statement of income am( x penIiLurC sioLild be itad in conjilnction with the accompaiying notes to tie speCidl pUripose financial statements 83 Peicrte Islands Forum Secretariat Paefie Resiliencc Progrum (PR EP) Statement of Financial Position As at 31 December 20 IR 31 December 31 December Notes 2018 2017 FJD FJD Current axsets Cash at bank 118,884 -58,302 Toul cMurrent assets 118,884 58,302 Total assets 118,884 58,302 Current liabilities .Acviua[s & other paynbles 2 24,91 5 28,048 Owing to Pacific Islands Forum SclreLarial 3 3 8 445984 Toial CLirrl libilitit[es 108,833 474,032 Total liabilites 108,833 474302 N et amses (Liabilities) 1),(l5I (415,73(1) IRepresenuted by: Surplus/ (Deficit) iii funds 10,5 (415,730) The above gives Iruc aTil fir view of the position of tho Project as t 31 DecembTr 2018. Li _30,/5/2019 Meg Taylor, DBE Da te Seeretary General Pacific Islands Forum Secretariat The statemelnil i Iiniricial posidion shoukl be read in couinction with thc acCOTI-laiyiTTIg [I1Ce1s to the special purpse finncial statemnents Pacific Islands Forum Sceretariat Paciefic Resil[ence Program (PRIP) Ntes to and foriniiig part of tlie special purpose financial stateints For the year ended 31 December 2018 1. Significant accounting pulicies The sisg ifiuant accounting pollees which have been adopted In the prepanation of the special purpose inn ci 2l MttC1TnCr IS are: a) Basis of accounting The special purpose fiTaicial staLenientS of the Project have been prepared on the modified cash basis of accountling. Income is recognised wien iti s rcucivud. l `penditure is recognized when icu rred (accrual bas]s). The special purpose linanciLI -SLaInTIs have been prepaied on the basis of historcal costs. The pioject does not require the applivulion oiall inerralional Vinancial Reporting Standardis. b) Foreign currency transactions The Project's foincional and presentation currency is Fijian Dollars (FJD). Transacions scilled in any currency oicr thaTI F ) is convertd into FJD at the exchange rate prevailing at the date of the tra nsaction. e) Cash at bank Cash balances include oash äi hari k d) Continuity if the Projeet The pr-ijemt Es for the duration of 61 months c) Accruials and ather payables Accrul s anud other payab les are recorded at cost and comprise of aud it fee and other payables. f) Owing to Pacific Islands Forum Secreiuri ( PIS) Owing to PIFS is recimded at cosL and cornprise of expenses incurred by the Project paEd by the SecretarEat yet to be reimibursed by the Projeci g) Comparatives and reporting periods Where ecessary, compurli ve fCirUs have been classitied or regrouped to confirm the changes in presentation 11 tie cui-enl pe-iod. The current period specinl pirPosU riTaricial statments Es for the year ended 31 December 20 [8 while the comparative special purp:isc lianciul sLemerits is for the year ended 31 December 20 1. 10 Pacific Islands Forim Seeretariat Paciflie Resilience Prograri (PR EP) Nores to anti forn inlg [iart i ifthe special purpose finaneial statemnents For Ihe yea r ended 31 Decemnber 2018 2018 2017 FJD FJD 2. Acerualm alnd other payables Audit fee - 20 1 7352 - - 2017 6.496 6,196 - 2016 - 4,095 Consultanis Lec 3,441 - Provision l [ax för consultant's fee 7,626 17,457 24,915 28,048 3. Owing to Pacific Islands Forum Seci-etariat ExpenduliiLre paid by PIFS 2018 255246 - Expendituie paid by PIFS 20 l 7 343,594 343,594 Expenditure1 paid by PI FS 2016 2,390 2,390 A dvunec frOIn P fl S 2016 100,000 100,000 R epayment to PIFS duiring the year (117,312) - Totals 83,918 445,984 MovenTrIri. in balance is attributable to: Olpentig balance 445,984 102,390 Expendiur paid by PIlS 55,246 343,594 Advance by PIFS - - Repayment to PIFS durig ihe yeur (417,312) - Totals 93.918 445,984 11