REPUBLIC OF KENYA FFICE OF THE AUDITOR-GENERAL REPORT THE WORLD BANK RECEIVED IN CD'S OFFICE Received by ... .. Date .. - Ckr OF tn l .k. Action by '7j - I THE AUDITOR-GENERAL ON THE FINANCIAL STATEMENTS OF NATIONAL URBAN TRANSPORT IMPROVEMENT PROJECT IDA CREDIT NO.5140-KE (KRC COMPONENT) FOR THE YEAR ENDED 30 JUNE 2016 KENYA RAILWAYS CORPORTATION off ICE of TRlE XUDITOR GE,NERAL, P. 0. Box 30084-00100,NAIROBI 9 DEC 2016 KENYA RAILWAYS right on /trark NATIONAL URBAN TRANSPORT IMPROVEMENT PROJECT (NUTRIP) IMPLEMENTING ENTITY: KENYA RAILWAYS CORPORATION. PROJECT GRANT/CREDIT NUMBER: IDA 5140 -KE ANNUAL REPORT AND FINANCIAL STATEVIENTS FOR THE FINANCIAL YEAR ENDED JUNE 30, 2016 Prepared in accordance with the Cash Basis of Accounting Method under the International Public Sector Accounting Standards (IPSAS) National Urban Improvement Project (NUTRIP) Credit NO. IDA 5140-KE Reports and Financial Statements For the financial Period ended June 30, 2016 CONTENTS PAGE 1. PROJECT INFORMATION AND OVERALL PERFORMANCE................................................................................i 2. STATEMENT OF PROJECT MANAGEMENT RESPONSIBILITIES.....................................................................vii 3. REPORT OF THE INDEPENDENT AUDITORS ON THE NUTRIP PROJECT.....................................................viii 4. STATEMENT OF RECEIPTS AND PAYMENTS FOR THE PERIOD ENDED 30TH JUNE 2016 ........................ 1 5. STATEMENT OF FINANCIAL ASSETS AND LIABILITIES AS AT 30TH JUNE 2016........................................ 2 7. STATEMENT OF COMPARATIVE BUDGET AND ACTUAL AMOUNTS........................................................... 4 8. N OTES TO THE FINANCIAL STATEM ENTS.......................................................................................................... 5 9. PROGRESS ON FOLLOW UP OF AUDITOR RECOMMENDATIONS ................................................................ 11 1 National Urban Improvement Project (NUTRIP) Credit NO. IDA 5140-KE Reports and Financial Statements For the financial Period ended June 30, 2016 1. PROJECT INFORMATION AND OVERALL PERFORMANCE 1.1 Name and registered office IDA Credit Number 5140-KE Name: The project's official title is National Urban Transport Improvement Project. Objective: The key objectives of the project are; a) Improve efficiency of the road transport along northern corridor b) Improve the institutional capacity and arrangements in the urban transport sub- sector c) Promote private sector participation in the operation, financing and management of transport systems Address: The project headquarters offices are in Nairobi, Nairobi County, Kenya. The address of its registered office is: Kenya Railways Headquarters LR No. 209/11954/2 Haile Selassie Avenue/Workshop Road P.0 Box 30121-00100 Contacts: The following are the project contacts Tel:(254) 020-2221211 Website :www.krc.co.ke 1.2 Project Information Project Start Date: The project start date is 26. 12 .2012 Project End Date: The project end date is 31. 12. 2018 Project Manager: Eng. Mucemi Gakuru Project Sponsor: The project sponsor is World Bank i National Urban Transport Improvement Project (NUTRIP) Credit NO. IDA 5140 -KE Reports and Financial Statements For the financial period ended June 30, 2016 1.3 Project Overview Line Ministry/State The project is under the supervision of the Ministry of Transport. Department of the project Project number P126321 Strategic goals of the The strategic goals of the project are as follows: project i. Improve efficiency of the road transport along northern corridor ii. Improve the institutional capacity and arrangements in the urban transport sub- sector iii. Promote private sector participation in the operation, financing and management of transport systems Achievement of The project management aims to achieve the goals through the following strategic goals means: i. Carrying out feasibility studies and detailed designs; and preparing the necessary bidding documents for construction of selected commuter rail systems in Nairobi and other major towns through provision of technical advisory services required for that purpose. ii. Preparing bidding and contract documents for the selection of private sector operators providing commuter rail operations and associated services; through provision of advisory services required for that purpose. iii. Supplying and installing information systems (IT) and building the capacity of KRC in IT, management of private sector involvement, planning, management of contracts including for concessionaires; and other oversight functions; all through provision of goods, training and services required for that purpose. Current situation that The project was formed to intervene in the following areas: the project was (i) Have feasibility and detailed engineering design and studies for formed to intervene commuter rail in Nairobi, Mombasa and Kisumu cities (ii) Have technical assistance and advisory services related to the services of Nairobi, Mombasa and Kisumu Commuter rail. (iii) Have capacity building by Training of Staff. Project duration The project started on 26. 12 .2012 and is expected to run until 31. 12. 2018 11 National Urban Transport Improvement Project (NUTRIP) Credit NO. IDA 5140 -KE Reports and Financial Statements For the financial period ended June 30, 2016 1.4 Bankers The following are the bankers for the current year: i. Special Account: Commercial Bank of Africa NUTRIP- Project E-(KRC)-MAIN ACCOUNT NO. 6968530013 ii. Principal Bankers: NIC BANK LIMITED USD A/C NO.1001004057 KSH A/C NO.1001004049 Masaba Road Branch ,Upper hill P.O. Box 44599, 00100 NAIROBI 1.5 Auditors The project is audited by the Office of the Auditor General. Office of the Auditor General P.O. Box 30084-00100 NAIROBI 111 National Urban Transport Improvement Project (NUTRIP) Credit NO. IDA 5140 -KE Reports and Financial Statements For the financial period ended June 30, 2016 1.6 Roles and Responsibilities Names Title designation Ke qualification Responsibilities Eng.Mucemi Gakuru PIT Leader BSC (Electrical Eng.) -Overall management PhD(Electrical Eng) and monitoring of all Registered Eng. (EBK) projects -Undertake contract negotiations -Ensure reports are prepared and submitted on time -Liaise with bank on project activities Attend POC and PITL briefings and meetings -Publication of awards and reports in WB client connection Peter Kamakia Project Accountant BBM (Finance Option) -Preparation of CPA(K) project Financial reports, budgets and monitoring -Ensure timely payment -Ensure financial audits are carried out 1v National Urban Transport Improvement Project (NUTRIP) Credit NO. IDA 5140 -KE Reports and Financial Statements For the financial period ended June 30, 2016 1.7 Funding summary The Prlect is for a duratiion oT six years from 2012to2T0189wiith an approved-budget of USD 11,930,000/- equivalent to Kshs 1, 071,552,600/- as highlighted in the table below: Below is the funding summary: Grant IDA 11,930,000 1,071,552,600 786,421 70,636,346 11,143,578.87 1,000,916,254 (ii) Loans - - - - (iii) Counterpart funds Government of - - - - Kenya Total 11,930,000 1,071,552,600 786,421 70,636,346 11,143,578.87 1,000,916,254 1.8 Summary of Overall Project Performance: In the FY 2015/16, 6.6% of the funds have been absorbed of the total project cost. The areas the Corporation has made major strides in the project is on the training aspect where the corporation has undertaken various capacity building trainings for staff on procurement, leadership and management,technical skills among others both locally and internationally. The disbursement on training as at 30 June 2016 is Ksh 30million.The other milestone achieved is on Institutional building to supply and install ICT software. There was an absorption of Ksh 20million in the project on the same. On these two areas there has been value for money as staff have acquired the necessary skills to better their output and there has also been software acquisition to enhance service delivery. The main challenge has been the period taken to have disbursement of reimbursable expenditures which if shortened would enhance project implementation. Also ,fast tracking of the 'No Objections' from the World Bank. v National Urban Transport Improvement Project (NUTRIP) Credit NO. IDA 5140 -KE Reports and Financial Statements For the financial period ended June 30, 2016 1.9 Summary of Project Compliance: There has been fully project requirements compliance achieved by abiding to the Financing Agreement , Project Appraisal Document (PAD) and the Kenyan Laws and Regulations. Also to enhance compliance our Team has been attending meetings, workshops and clinics as called by the World Bank, parent Ministry and National Treasury from time to time. The project financial reporting has also complied with the International Public Sector Accounting Standards of Accounting ( IPSAS) cash basis. vi National Urban Transport Improvement Project (NUTRIP) Credit NO. IDA 5140 -KE Reports and Financial Statements For the financial period ended June 30, 2016 2. STATEMENT OF PROJECT MANAGEMENT RESPONSIBILITIES The Managing Director, Kenya Railways and the Project Implementation team leader for NUTRIP project are responsible for the preparation and presentation of the Project's financial statements, which give a true and fair view of the state of affairs of the Project for and as at the end of the financial year (period) ended on June 30, 2016. This responsibility includes: (i) maintaining adequate financial management arrangement and ensuring that these continue to be effective throughout the reporting period; (ii) maintaining proper accounting records, which disclose with reasonable accuracy at any time the financial position of the Project; (iii) designing, implementing and maintaining internal controls relevant to the preparation and fair presentation of the financial statement, and ensuring that they are free from material misstatements, whether due to error or fraud; (iv) safeguarding the assets of the Project; (v) selecting and applying appropriate accounting policies; and (vi) making accounting estimates that are reasonable in the circumstances. The Managing Director, Kenya Railways and the Project Implementation Team Leader for NUTRIP project accept responsibility for the Project's financial statements, which have been prepared on the Cash Basis Method of Financial Reporting,. using appropriate accounting policies in accordance with International Public Sector Accounting Standards. The Managing Director, Kenya Railways and the Project Implementation Team leader for NUTRIP project are of the opinion that the Project's financial statements give a true and fair view of the state of Project's transactions during the financial period ended June 30, 2016, and of the Project's financial position as at that date. The Managing Director, Kenya Railways and the Project Implementation Team Leader for NUTRIP project further confirm the completeness of the accounting records maintained for the Project, which have been relied upon in the preparation of the Project financial statements as well as the adequacy of the systems of internal financial control. The Managing Director, Kenya Railways and the Project Implementation Team Leader for NUTRIP project confirm that the Project has complied fully with applicable Government Regulations and the terms of external financing covenants, and that Project funds received during the financial period under audit were used for the eligible purposes for which they were intended and were properly accounted for. Approval of the Project financial statements The Project financial statements were approved by the Managing Director, Kenya Railways and the Project Implementation Team Leader for NUTRIP project on ZI 0C.F_ O IG 2016 and signed by them. The Managing Director Proj ct Implementation Team leader vii National Urban Transport Improvement Project (NUTRIP) Credit NO. IDA 5140 -KE Reports and Financial Statements For the financial period ended June 30, 2016 3. REPORT OF THE INDEPENDENT AUDITORS ON THE NUTRIP PROJECT Viii REPUBLIC OF KENYA Telephone: +254-20-342330 P.O. Box 30084-00100 Fax: +254-20-311482 NAIROBI E-mail: oag@toagkenya.go.ke Wcbsite: wvw.kenao.go.ke OFFICE OF THE AUDITOR-GENERAL REPORT OF THE AUDITOR-GENERAL ON NATIONAL URBAN TRANSPORT IMPROVEMENT PROJECT IDA CREDIT NO.5140-KE (KRC COMPONENT) FOR THE YEAR ENDED 30 JUNE 2016 - KENYA RAILWAYS CORPORTATION REPORT ON THE FINANCIAL STATEMENTS I have audited the accompanying financial statements of National Urban Transport Improvement Project (KRC Component) set out at pages 1 to 12 which comprise the statement of financial assets and liabilities as at 30 June 2016, and the statement of receipts and payments, statement of cash flow, and statement comparative of budget and actual amounts for the year then ended and a summary of significant accounting policies and other explanatory information for the year then ended, in accordance with provisions of Article 229 of the Constitution of Kenya, Section 35 of the Public Audit Act, 2015 and the Financing Agreement Credit No.5140-KE signed on 26 September 2012 between International Development Association (IDA) and the Republic of Kenya. I have obtained all the information and explanations which, to the best of my knowledge and belief, were necessary for the purpose of the audit. Management's Responsibility for the Financial Statements The Managing Director-Kenya Railways Corporation and the Project Coordinator are responsible for the preparation and fair presentation of these financial statements in accordance with International Public Sector Accounting Standards (Cash Basis) and for such internal control as management determines is necessary to enable the presentation of financial statements that are free from material misstatement, whether due to error or fraud. The management is also responsible for the submission of the financial statements to the Auditor-General in accordance with the provisions of section 47 of the Public Audit Act 2015. Auditor-General's Responsibility My responsibility is to express an opinion on these financial statements based on the audit and report in accordance with the provisions of Section 48 of the Public Audit Act, 2015 and submit the audit report in compliance with Article 229(7) of the Constitution. The audit was conducted in accordance with the International Standards of Supreme Audit Institutions. Those standards require compliance with ethical requirements and that the audit be planned and performed reasonable assurance about whether the financial statements are free from material misstatement. Report of The Auditor-General on the Financial Statements on National Urban Transport Inprovement Project IDA Credit No.5140-KE (KRC Component) For The Year Ended 30 June 2016 - Kenya Railways Corporation Promoting AccountabilitY in the Public Sector An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judegment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements 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. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the management, as well as evaluating the overall presentation of the financial statements. I believe the audit evidence obtained is sufficient and appropriate to provide a basis for my qualified audit opinion. Basis for Qualified Opinion 1.0 Special Account Reconciliation The project statement of receipts and payments shows an amount of Kshs.12,257,837 from external developments partners during the year under audit. However, a review of the Project Special Account Statement prepared by the National Treasury indicates a total of Kshs.10,257,837 (USD 100,488.22) withdrawn to finance the project activities resulting in a variance of Kshs.2,000,000 between the two statements which has not been explained or reconciled. Qualified Opinion In my opinion, except for the effects of the matter described in the Basis for Qualified Opinion paragraph, the financial statements present fairly, in all material respects, the financial position of the National Urban Transport Improvement Project (KRC Component) as at 30 June, 2016 and of its financial performance and its cash flows for the year then ended, in accordance with International Public Sector Accounting Standards (Cash Basis) and conform to the Credit Agreement No.5140- KE signed on 26 September, 2012. In addition, the special account statement presents fairly, the special account transactions and the closing balance has not been reconciled with the books of accounts. REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS As required by International Development Association (IDA), I report based on my audit that:- i. I have obtained all the information and explanations which, to the best of my knowledge and belief, were necessary for the purpose of the audit; Report of The Auditor-General on the Financial Statements on National Urban Transport Improvement Project IDA Credit No.5140-KE (KRC Component) For The Year Ended 30 June 2016- Kenya Railways Cotporation 2 ii. in my opinion, proper books of account have been kept by the Project, so far as appears from my examination of those books; and, iii. The Project's statement of financial position is in agreement with the books of account. FCPA Edward R.O. Ouko, CBS AUDITOR GENERAL Nairobi 29 December 2016 Report of The Auditor-General on the Financial Statements on National Urban Transport Improvement Project IDA Credit No.5140-KE (KRC Component) For The Year Ended 30 June 2016 - Kenya Railways Corporation National Urban Improvement Project (NUTRIP) Credit NO. IDA 5140-KE Reports and Financial Statements For the financial Period ended June 30, 2016 4. STATEMENT OF RECEIPTS AND PAYMENTS FOR THE PERIOD ENDED 30TH JUNE 2016 Cumulative to 2016 2015 date Kshs Kshs Kshs RECEIPTS Transfer from Government entities 8.2 - Proceeds from domestic and foreign grants 8.3 - - - Loan from external development partners 8.4 12,257,837 58,378,509 70,636,346 Miscellaneous receipts 8.5 1,237,898 531,471 1,769,369 Total receipts 13,495,735 58,909,980 72,405,715 PAYMENTS Compensation of employees 8.6 - - - Purchase of goods and services 8.7 24,734,121 9,025,852 33,759,973 Social security benefits 8.8 - - - Acquisition of non-financial assets 8.9 20,805,688 - 20,805,688 Transfers to other government entities 8.10 - - Other grants and transfers and payments 8.11 - - - TOTAL PAYMENTS 45,539,809 9,025,852 54,565,661 SURPLUS/DEFICIT FOR THE YEAR (32,044,074) 49,884,128 17,840,054 The accounting policies and explanatory notes to these fin al statements are an integral part of the financial statements. Managing Director Proje s Im lementation Team Leader Date Date National Urban Transport Improvement Project (NUTRIP) Credit NO. IDA 5140 -KE Reports and Financial Statements For the financial period ended June 30, 2016 5. STATEMENT OF FINANCIAL ASSETS AND LIABILITIES AS AT 30TH JUNE 2016 Note 2016 2015 Kshs Kshs FINANCIAL ASSETS Cash and Cash Equivalents Bank Balances 8.12A 17,840,054 49,884,128 Cash Balances 8.12B - - Cash Equivalents 8.12C - - Imprests and Advances 8.12D - - TOTAL FINANCIAL ASSETS 17,840,054 49,884,128 REPRESENTE BY: Cash and cash equivalents b/fwd 8.13 49,884,128 - Surplus/Deficit for the year (32,044,074) 49,884,128 Prior year adjustments 8.14 - - NET FINANCIAL POSITION 17,840,054 49,884,128 The accounting policies and explanatory notes to these financial statements form an integral part of the financial statements. The financial statements were approved on & iL 2016 and signed by: Managing Director Prpe p ementation Team Leader Date Date 2 National Urban Transport Improvement Project (NUTRIP) Credit NO. IDA 5140 -KE Reports and Financial Statements For the financial period ended June 30, 2016 6. STATEMENT OF CASHFLOW FOR THE PERIOD 30TH JUNE 2016 2016 2015 Kshs Kshs Receipts for operating income Transfer from Government entities Proceeds from domestic and foreign grants - Miscellaneous receipts 1,237,898 531,471 Payments for operating expenses Compensation of employees - - Purchase of goods and services 24,734,121 9,025,852 Social security benefits - - Transfers to other government entities Other grants and transfers Other payments Net cash flow from operating activities (23,496,223) (8,494,381) CASHFLOW FROM INVESTING ACTIVITIES Acquisition of Assets 20,805,688 Net cash flows from Investing Activities (20,805,688) - CASHFLOW FROM BORROWING ACTIVITIES Proceeds from Foreign Borrowings 12,257,837 58,378,509 Net cash flow from financing activities 12,257,837 58,378,509 NET INCREASE IN CASH AND CASH (32,044,074) 49,884,128 EQUIVALENT Cash and cash equivalent at BEGINNING of the 49,884,128 - year Cash and cash equivalent at END of the year 17.840.054 49.884.128 .4 The accounting policies and explanatory notes to these financial statements form an integral part of the financial st tements. The entity financial statementswe r ved on 2016 and signed y:.. . Managing Director Pr p emenfation Team Leader Date Date 3 National Urban Transport Improvement Project (NUTRIP) Credit NO. IDA 5140 -KE Reports and Financial Statements For the financial period ended June 30, 2016 7. STATEMENT OF COMPARATIVE BUDGET AND ACTUAL AMOUNTS Actual on Original Adjustme Final Comparable % of Receipts/Payments Item Budget nts Budget Basis Variance Variance a b c=a+b d e=d-c f=e/c % Receipts Ksh'000' Ksh'000' Ksh'000' Ksh'000' Ksh'000' Ksh'000' Transfer from Government entities - - - -_-_- Proceeds from domestic and foreign grants 393,000 - 393,000 12,257.84 -380,742.16 -96.9% Proceeds from borrowings Miscellaneous receipts 1,000 - 1,000 1,237.90 237.90 24% Total Receipts 394,000 - 394,000 13,495.74 (380,504.26) -96.6% Payments Commuter Feasibility Studies 272,000 - 272,000 - 272,000 -100% Purchase of goods and services 40,000 - 40,000 24,734.20 -15,265.80 -38% Social security benefits - - - - Acquisition of non-financial assets 81,000 - 81,000 20,805.60 -60,194.40 -74% Transfers to other government entities - - - - Other grants and transfers - . . - Other payments - - . Total Payments 393,000 393,000 45,539.80 (347,460.2) -88% Note: The significant budget utilisation/performance differe c s last column are explained in Annex 1 to these Tnancial statemvts. Managing Director Pro0 p ementation Team Leader Date Date 4 National Urban Transport Improvement Project (NUTRIP) Credit NO. IDA 5140 -KE Reports and Financial Statements For the financial period ended June 30, 2016 8. NOTES TO THE FINANCIAL STATEMENTS The principal accounting policies adopted in the preparation of these fiiianciial statements are set out below: 8.1 Statement of compliance and basis of preparation The financial statements have been prepared in accordance with and comply with International Public Sector Accounting Standards (IPSAS) with particular emphasis on Cash Basis Financial Reporting under the Cash Basis of Accounting. The financial statements comply with and conform to the form of presentation prescribed by the Accounting Standards Board of Kenya. The financial statements are presented in Kenya Shillings, which is the functional and reporting currency of the Project and all values are rounded to the nearest one Shilling. The accounting policies adopted have been consistently applied to all of the years presented. The financial statements have been prepared on the cash basis following the Government's standard chart of accounts. The cash basis of accounting recognises transactions and events only when cash is received or paid out by the Project. i. Recognition of revenue and expenses The Project recognises all revenues from the various sources when the event occurs and the related cash has actually been received by the Project. In addition, the Project recognises all expenses when the event occurs and the related cash has actually been paid out by the Project. ii. In-kind donations In-kind donations are contributions made to the Project in the form of actual goods and/or services rather than in money or cash terms. These donations may include vehicles, equipment or personnel services. Where the financial value of in-kind donations can be reliably determined, the Project includes such value in the statement of receipts and payments both as revenue and as an expense in equal and opposite amounts; otherwise, the donation is not recorded. iii. Cash and cash equivalents Cash and cash equivalents domprise cash on hand and cash at bank, short-term deposits on call and highly liquid investments with an original maturity of three months or less, which are readily convertible to known amounts of cash and are subject to insignificant risk of changes in value. Bank account balances include amounts held at the Central Bank of Kenya and at various commercial banks at the end of the financial year/period. For the purposes of these financial statements, cash and cash equivalents also include short term cash imprests and advances to authorised public officers and/or institutions which had not been surrendered or accounted for at the end of the financial year/period. 5 National Urban Transport Improvement Project (NUTRIP) Credit NO. IDA 5140 -KE Reports and Financial Statements For the financial period ended June 30, 2016 SIGNIFICANT ACCOUNTING POLICIES (Continued) iv. Pending bills Pending bills consist of unpaid liabilities at the end of the financial year/period arising from contracted goods or services during the year/period or in past years/periods. As pending bills do not involve the payment of cash in the reporting period, they are simply disclosed as an Annex to the financial statements. When the pending bills are finally settled, such payments are included in the statement of receipts and payments in the year in which the payments are made. v. Budget The budget is developed on the same accounting basis (cash basis), the same accounts classification basis, and for the same period as the financial statements. The Project's budget was approved as required by Law and National Treasury Regulations, as well as by the participating development partners, as detailed in the Government of Kenya Budget Printed Estimates for the year. A high-level assessment of the Project's actual performance against the comparable budget for the financial year/period under review has been included in an annex to these financial statements. vi. Exchange rate differences The accounting records are maintained in the functional currency of the primary economic environment in which the Project operates, Kenya Shillings. Transactions in foreign currencies during the year/period are converted into the functional currency using the exchange rates prevailing at the dates of the transactions. Any foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the statements of receipts and payments. vii. Comparative figures Where necessary comparative figures for the previous financial year/period have been amended or reconfigured to conform to the required changes in financial statement presentation. viii. Subsequent events There have been no events subsequent to the financial year/period end with a significant impact on the financial statements for the year ended June 30, 2016 6 National Urban Transport Improvement Project (NUTRIP) Credit NO. IDA 5140 -KE Reports and Financial Statements For the financial period ended June 30, 2016 NOTES TO THE FINANCIAL STATEMENTS (Continued) 8.2 EUE1TS FlITV E1MEN TOF KENYVA The project has not received any counterpart funding from Government of Kenya during the financial period 2015/16. 8.3 PROCEEDS FROM DOMESTIC AND FOREIGN GRANTS During the 12 months to 30 June 2016 the project did not receive grants from donors. 8.4 LOAN FROM EXTERNAL DEVELOPMENT PARTNERS During the 12 months to 30 June 2016 we received funding from the development partners in form of loans negotiated by the National Treasury as detailed in the table below: LanseReceived from Bilateral rs (Foreign Governments) Not applicable (N/A) N/A NIL NIL NIL NIL NIL Loans Received from Multilateral Donors (International Organizations) WorldBank 11/01/2016 136,471.13 12,257,837 NIL 12,257,837 58,378,509 Total 12,257,837 58,378,509 7 National Urban Transport Improvement Project (NUTRIP) Credit NO. IDA 5140 -KE Reports and Financial Statements For the financial period ended June 30, 2016 NOTES TO THE FINANCIAL STATEMENTS (Continued) 8.5 MISCELLANEOUS RECEIPTS FY 2015/16 FY 2014/15 Cumulative Kshs Kshs Kshs Property income - - - Sales of goods and services - - - Administrative fees and charges - - - Fines, penalties and forfeitures - - - Voluntary transfers other than grants - - - Other receipts -Interest on deposits 1,237,898 531,471 1,769,369 1,237,898 531,471 1,769,369 The Other receipts above relate to Interest on deposits held at NIC Bank. 8.6 COMPENSATION OF EMPLOYEES There were no employee costs paid out of the project. 8.7 PURCHASE OF GOODS AND SERVICES 2015/16 2014/15 Cumulative Kshs Kshs Training expenses 22,018,474 9,025,852 31,044,326 Other operating expenses 2,719,567 - 2,719,567 Exchange rate losses/gains (net) (3,920) - (3,920) 24,734,121 9,025,852 33,759,973 The operating expenses relate to advertising costs of Ksh 2,565,467/- and Ksh 154,100/- relate to commuter expenses incurred during the year. 8.8 SOCIAL SECURITY BENEFITS. There were no Social Security Benefits paid from the Project. 8.9 ACQUISITION OF NON-FINANCIAL ASSETS 2015/16 2014/15 Cumulative Kshs Kshs to-date Acquisition of other intangible assets 20,805,688 - 20,805,688 20,805,688 - 20,805,688 During the year the Project purchased intangible assets inform of computer software which were installed in the Corporations computers. 8 National Urban Transport Improvement Project (NUTRIP) Credit NO. IDA 5140 -KE Reports and Financial Statements For the financial period ended June 30, 2016 NOTES TO THE FINANCIAL STATEMENTS (Continued) _ - 8.0X Transfers to other government entities. During the 12 months to 30 June 2016, no transfers were made to government entities. 8.11 Other grants and transfers and payments During the 12 months to 30 June 2016, no other grants and transfers and payments 8.12 CASH AND CASH EQUIVALENTS C/FWD 2015/16 2014/15 Kshs Kshs Bank accounts (Note 12A) 17,840,054 49,884,128 Cash in hand (Note 12B) Cash equivalents (short-term deposits) (Note 12C) - - Outstanding imprests and advances (Note 12D) - - 17,840,054 49,884,128 2015/16 2014/15 Kshs Kshs 8.12A Bank Accounts Foreign Currency Accounts NIC Bank [A/c No1001004057] NIL NIL Total Foreign Currency balances NIL NIL Local Currency Accounts NIC Bank [A/c No1001004049] 17,840,054 49,884,128 Total local currency balances 17,840,054 49,884,128 Total bank account balances 17,840,054 49,884,128 The NIC USD Account was opened for foreign currency related transactions but has not had any transactions since inception. 8.12B Cash in hand No Cash in Hand was held as at 30th June 2016 9 National Urban Transport Improvement Project (NUTRIP) Credit NO. IDA 5140 -KE Reports and Financial Statements For the financial period ended June 30, 2016 NOTES TO THE FINANCIAL STATEMENTS (Continued) 8.12C Cash equivalents (short-term deposits) No Short term deposits were held as at 30th June 2016 8.12D Outstanding Imprests and Advances No Imprests were outstanding as at 30th June 2016 8.13 Cash and Cash and Equivalent b/fwd The cash balance brought forward from FY2014/15 is Ksh 49,884,128/- 8.14 Prior Year Adjustments There were no prior year adjustments 13 PENDING BILLS There were no pending bills as at 30th June 2016 14 PENDING STAFF BILLS There were no pending staff bills as at 30th June 2016 15 OTHER PENDING PAYABLES There were no pending payables as at 30th June 2016 10 � а� � а� а � и � ш ьд � � � � � � � ... о � � а� � � � о z я" о � . н � � � � � -о ~ _и � � � � � о � � � л � а � � ,� о � о .., `v � � � о о � М � � � w .� о � � о � s. � '> и � � ~ � '� � w � � �� о � й• � у о � � ���q � � М�� z � ���'� О � �А�� � � Q �. 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