KENYA NATIONAL AUDIT OFFICE

Transcription

1 REPUBLIC OF KENYA Public Disclosure Authorized KENYA NATIONAL AUDIT OFFICE Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized.ON WATER ANU SANITATION SERVICES IMPROVEMENT P~OJECT (IDA GRANT Ne KE). FOR TllE YEAR ENDED 30JUNE2014

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3 PROJECT GRANT/CREDIT NUMBER: IDA ~I9.~:.K~. ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED JUNE 30, 2014 Prepared in accordance with the Cash Basis of Accounting Method under the International Public Sector Accounting Standards (IPSAS)

4 CONTENTS PAGE 1. PROJECT INFORMATION AND OVERALL PERFORMANCE STATEMENT OF PROJECT MANAGEMENT RESPONSIBILITIES REPORT OF THE INDEPENDENT AUDITORS ONiTHE WATER AND SANITATION SERVICE IMPROVEMENT PROJECT STATEMENT OF RECEIPTS AND PAYMENTS FOR THE PERIOD ENDED 30TH JUNE STATEMENT OF FINANCIAL ASSETS AND LIABILITIES AS AT 30TH JUNE STATEMENT OF CASHFLOW FOR THE PERIOD 30TH JUNE STATEMENT OF COMPARATIVE BUDGET AND,b.CTUAL AMOUNTS NOTES TO THE FINANCIAL STATEMENTS... 14

5 1. PROJECT INFORMATION AND OVERALL PERFORMANCE 1.1 NAME WATER AND SANITATION SERVICES IMPROVEMENT PROJECT ADDITIONAL FINANCE (WaSSIP-AF) PROJECT NO: P CREDIT NO: IDA-5103 KE REGISTERED OFFICE Athi Water Services Board P.O. Box GPO Africa-Re Centre, 3rd Floor Hospital Road-Upper Hill NAIROBI Objective: The Project's development objectives are: (a) to increase access to water supply and sanitation services; and (b) to improve the water and wastewater services in the areas served by Athi Water Services Board, Lake Victoria North Water Services Board, and Coast Water Services Board. Address: The projects headquarter offices are in hospital road, Upperhill, Nairobi, Kenya. 1.2 Project Information j '< " ",,._,,, "'"'' '"; i'''...,..,~ -. :"':.{< : ;:, :.~;::.>:<.: :.. <'.:)">.,. ; r~,~.:.<. : ~~~~.~1:,5S~. <~.: ~:: ~$>, >. :;.~ :/::/ '..".\>.:".+\ - ' ~.;.;.~~~~f ~;'.~~~!;~'.'.>~:;:;:~::?~*\,.>. :}~:.~~~;~t 5 ~:~'. :;?~, C/, ~~(;,.;.~<' :. L ~< >;:~~'.~~;?~:t~~ - ~ ~.:,~\:- " :,f;:~::;,:~0j~?lt~> ' T.. N ~~t;; and sanitation!country: jkenya rroject Name: Jservices Improvement!.! I!Project (W" assip) ~roject ID: jp /r,!cftf-number(s~--lida KE r r joriginal total!usd 164,082,309 lnisbursed Amount: lusd 37,849,593.12!Commitment: l! i ~nding-;:::ent--e~ specific Investmeni-~uarantor ~ f ~ny;-=-== Loan Type iida - IDA Credit-!Loan Term ~O Years ~~;;;~f :R;~~-rd -----The N~~nal!i~~ury ----!Grace Period ~ I ;Environmental Category: C ~mpiementing Agencles; l Athi Water Services Board I 2 --ji 0 Ye~s-~~==~=-:~=

6 Approval 10-May-2012 Application Deadline 30-Apr-2016 Effective. 14-Dec-2012 First Repayment 15-Apr :E_~?~!~~---, i.~::q~~:~~-!~.---'.~~~-!..~~e-~r~e.!1! : ~-----i -~--~--~~ ----~:~~- --- ~--' :-~ ~~--~--< , ~"' - 1~::2.~!:~Q-~Z... ~---~ ~ i 1.3 Project Overview Project description: Component 1 will provide support to the A WSB, which will assist in the rehabilitation and extension of water supply systems, including the development of additional water sources for Nairobi, drought mitigation measures, and improvements in wastewater treatment facilities in AWSB's area. Technical assistance will also be provided to the AWSB and its water services providers, the Water Services Regulatory Board (WSRB), and the Water Appeals Board (WAB). Water supply/distribution and wastewater collection and treatment Projects Prepared under WaSSIP (designs and environmental impact assessments completed, awaiting clearance and disclosure) Construction of northern collector tunnel (river abstraction/intake structures and 11.3 kilometer tunnel) (US$85.20 minion). This sub-component is part of the recommendations from the ongoing feasibility study and master plan for the development of new water sources for Nairobi and satellite towns being undertaken by AWSB under WaSSIP. The northern collector phase I is part of the selected scenario, which is the most preferred of the six scenarios reviewed under this consultancy. Proposed works will include cconstruction of the northern collector tunnels (11.3 kilometers), diverting the three rivers oflrati, Gikigie, and Maragua for a flow of 1.6 cubic meters per second as previously designed in 1998; improvement ofmwagu intake structure and screening equipment and construction of Mataara-Ngethu raw water main. A preliminary environmental impact assessment has been undertaken and disclosed as part of the feasibility study and masterplan. Preparation of a full environmental impact assessment is currently underway. Improvement of water and sanitation in the informal settlements in Nairobi (US$3.2 million). Designs, environmental impact assessment, and tender documents for improvements in the informal settlements exist The informal settlements under consideration for support of water and sanitation schemes under WaSSIP AF include: Kayo le Soweto, Matopeni Spring Valley, Mabatini, River Bank, Maili Saba, Huruma, Mathare and Kahawa 3

7 Water And Sanitation Service Improvement Project~Additionalfinancing Soweto. Constru.ction of water reticulation system for Ruin1 and. Juja (US$1. 7 million). The proposed works include the construction of a water service reservoir with a capacity of 5,000 cubic meters at Ruiru and reinstatement of distribution pipes scaled down from the original WaSSIP. The development of the distribution system will release water intended for Githurai and Kahawa Sukari areas. The designs and tender documents for these works are ready and the environmental impact assessment is awaiting approval by the Bank. Consultancy Services to AWSB in specific areas (US$22.37 million by IDAIAFD) Design, supervision and preparation of environmental impact assessments for indicative projects to be financed under WaSSIP AF Other consultancies ineluding, setting up of sewer connections revolving fund, energy audits, customer identification survey, automatic meter reading, and others Project communication Institutional support (goods and training) for AWSB and its water services providers (US$4.64 million) Supply and installation of water and wastewater management equipment (US$2.96); and purchase of motorcycles for water services providers (US$210,000). This will include water metering programme, leak detection equipment, and supply of pipes and fittings and motorcycles for water services providers.. Supply and installation of office and information and communications technology (US$380,000). This will include the supply and installation of hardware and software for AWSB and its water services providers, and a software for network model (WaterCAD) for NCWSC. A WSB will receive support to interlink the Board with the water services providers under its jurisdiction with internet office facilities for effective communication. A WSB will also receive technical assistance for provision of legal assistance for establishing and registering water and sewerage infrastructure wayleaves and implementation of the Resettlement Action Plan. Training and capacity building for A WSB and its water services providers (US$850,000 million) Project communication materials (US$300,000). This will support project communication activities over the 5 years of implementation. A project communications strategy will be developed to scale up and build up on gains made under WaSSIP. Support to the WSRB (US$1.93 million). WaSSIP AF will help the WSRB to strengthen its capacity for effective regulation. The project will support implementation of a compliance and enforcement strategy for water services boards and water services providers, strengthening management of human resources, and preparation of disaster preparedness and management plans for water services providers. Support includes procurement of information and communications technology, and training, study tours, and workshops. 4

8 Support to the WAB (US$1.0 million). The project will support the WAB to improve its capacity to handle complaints and resolve disputes. Specifically, it will assist rehabilitation or construction of county offices and courts, strengthening of claims and dispute resolution, and implementation of public awareness campaigns. Support will include procurement of information and communications technology, and training, study tours, and workshops. Activities under the original WaSSIP (US$1.5 million). The budget for on-going is amount provided to carter for commitments under W assip beyond the funds available. Implementation of drought mitigation measures (US$16.5 million) Supply of 120 collapsible water tanks (capacity 10 cubic meters and 5 cubic meters) including a hosepipe and pumpset. Supply of cubic meters plastic water tanks to public schools and institutions for rainwater harvesting including gutters, downpipes, :fittings and concrete base. Supply of 14 utility mini-lorries for carrying pipes, collapsible tanks, and similar goods. 18 mobile water treatment units for both turbid river water and saline water from boreholes (to be pulled by a pickup). Development of 39 borehole water sources and equipping with submersible pumpsets, electricity supply/solar panels and generator sets and water storage tanks. Supply of ten 6 wheel drive drought monitoring vehicles-hardtops for Tana and Tanathi WSB. 6. Summary of Performance: The project is in the second year ofimplementation IDA and has disbursed USD 5,764, which is approximately 4% of the project value. The commitments for the project were valued at 10% of the project value. 1.4 Bankers The following are the bankers for the current year: Designated account: CFC Stanbic Bank Kenya Account No Kenya commercial bank Kipande house branch Nairobi Cooperative bank of Kenya Upperhill branch-kusco Nairobi 1.5 Auditors The project is audited by Auditor General Kenya national audit office P.O.Box

9 Nairobi 1.6 Roles and Responsibilities Names Title designation Key Responsibilities qualification Eng. Malaquen Milgo Chief Executive Office Engineer Project coordinator RoseNyaga Head Finance & Strategy Accountant Project accountant Eng. John Muiruri Head Capital Planning Engineer Project Manager 1. 7 Funding summary The Project is for duration of 3 years from 2012 to 2015 with an approved budget of US$ 164,082,309 equivalent to 13,816,091,399 as highlighted in the table below: IDA 3,784, ,660,827 1,487,080,487 GRANT 1 330,956, ,875, ,156,123, IDA Loan 146,421,482 12,329,010,912 34,064,633. 2,978,611,580. l 112,356, ,350,399, Government of Kenya Counterpart funds Total 164,082,309 13,816,091,399 37,849,593 3,309,568, ,232, ,506,522,977 6

10 Water And Sanitation Service Improvement Proiect Additionalfimmcing 1.8 Summary of Overall Project Performance: The project is in the second year of implementation IDA and has disbursed USD 37,849, which is approximately 23.06% of the project value. The commitments for the project were valued at 71.94% of the project value. During the financial year only one works was completed. However procurement for the major works was concluded pending commencement. The outputs and impacts of the project will be realised on completion of the works projects whose construction period ranges from a period. of 12 months to 42 months for the major works. Implementation of the project is generally satisfactory and the project is on track to achieve its objectives. The project has led to a rise in the number of peopl.e provided with access to improved water source. An etimated 277,091 additional people are now accessing water from improved sources compared to 368,328 people (2011 baseline for WaSSIP AF), bringing the number of people benefiting from the project to 645,419. This is 43% above the 2014 target of 644,000 people. The increase is attributed to several factors which includes; i. Increased water production in Nairobi which stand at estimated 1 % above the 2014 target of 575,000 m 3 per day. ii. Efficient water delivery to customers by the Nairobi Water Company which now stand at 357, 739 m 3 day, 47 boreholes implemented by the Nairobi Water Company as well a new connection by Limuru Water Company. iii. Improved commuinity water points have also lead to the increase of the number of people with improved water sourses. iv. Under the WaSSIP AF, additional 500 schools have had their water points either improved or rehabilitated compared to June 2011 (baseline for WaSSIP AF), bringing the number of beneficiaries to improved water points to 1100 schools. This shows a significant improvement index of77.4% above the 620 schools (2014 target). v. The project beneficiaries have increased with an estimated 277,091 unique individuals directly benefiting from water and sanitation services compared to 372, 328 (2011 baseline for WaSSIP AF), this bring the number of total beneficiaries to 649, 419 people which represents positive diviation of 42.8% from 648,000 people (2014 target). vi. All WSPs received support from WaSSIP majority of which the effect is felt (Nairobi, Karimeno, Limuru, Ruiru - Juja ). On the other hand, revenue collection for the quarter has performed exceptionally well with Nairobi Water Company recording 125.8% above the 2011 baseline for WaSSIP AF and 25.8% above 2014 target of 90%. This exceptional performance is accredited to the employment of the Rapid Results Initiatives to ensure that all outstanding revenues are fully collected and amount of unaccounted water reduced as well as high rate of costs recovery from the customer by the Board. Challenges faced during implementation were: The long procurement process which required a lot of consultation between A WSB and the World Bank. Availability of way leaves and project sites. 1.9 Summary of Project Compliance: During the period,the project complied with all the relevant laws, regulation and conditions set for the project. 7

11 2. STATEMENT OF PROJECT MANAGEMENT RESPONSIBILITIES The project coordinator Athi water services board and the Project accountant for water and sanitation improvement project (IDA Grant No.5103-KE) 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, 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 project coordinator for the Athi water services board and the Project accountant for water and sanitation improvement project (IDA Grant No.5103-KE) 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 Project coordinator for Athi water services board and the Project accountant for water and sanitation improvement project (IDA Grant No.5103-KE) 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 year/period ended June 30, 2014, and of the Project's financial position as at that date. The project coordinator for Athi water services board and the project accountant for water and sanitation improvement project (IDA Grant No.5103-KE) further confirm the completeness of the accounting records maintained for the Project, which have been relied up0n in the preparation of the Project financial statements as well as the adequacy of the systems of internal financial control. The Project coordinator for Athi water services board and the Project accountant for water and sanitation improvement project (IDA Grant No.5103-KE) 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 year/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 Project coordinator and the Project accountant for water and sanitation improvement project (IDA Grant No.5103-KE) on 25th September 2014 and signed by them. Project Accountant 8

12 Water And Sanitation Service Improvement Project-Additional fmancing 3. REPORT OF THE INDEPENDENT AUDITORS ON THE WATER AND SANITATION SERVICE IMPROVEMENT PROJECT REPORT ON FINANCIAL STATEMENTS 9

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15 In addition, the special account statement presents fairly the transactions for the year although the closing balance has not been reconciled with the books of account. Edward R. 0. Ouko, CBS AUDITOR-GENERAL NAIROBI 18 December

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17 6. STATEMENT OF CASHFLOW FOR THE PERIOD JOTHJUNE 2014 Receipts for operating income Kshs Receipts from IDA 1,463,581, Miscellaneous receipts : Interest Income 2,282, A WSB Counterpart 913, Payments for project expenses 1.Goods,Works,Training and services for Part! a,b(i) and b(iv), c and f 1,466,778, ,960, Kshs' 487,519, ,519, ,558, Goods, Works, Training and services for Partl b(ii) 2,038, ,972, Goods, Works, Training and services for Part! b(iii).... 2,705, Goods, Works and services for Partl e (ii) - 3,116, Goods, Works and services for Partl d 33,999, , 703, ,849, ,497, Net cash flow from operating activities 956,074, ,021, CASHFLOW FROM INVESTING ACTIVITIES Acquisition of Assets - Net cash flows from Investing Activities CASHFLOW FROM BORROWING ACTIVITIES - Net cash flow from financing activities NET INCREASE IN CASH AND CASH EQUIVALENT 956,07 4, Cash and cash equivalent at BEGINNING of the year IDA Account 60, Cash and cash equivalent at BEGINNING of the year 206,021, Cash and cash equivalent at END of the year 1,162,156, ,021, ,021, The accounting policies and explanatory notes to these financial statements fonn an integral part of the financial statements. The entity financial statements were approved on 2014 and signed by: project Accountant Date Date 12

18 7. STATEMENT OF COMPARATIVE BUDGET AND ACTUAL AMOUNTS Actual on Original Receipts/Payments Item Final Budget Comparable Variance Budget Basis Receipts IDA a c=a+b d e=d-c 1,914,000,000. l,914,000,000. 1,463,581, ,418, Interest 0 2,282, ,282, Gok counterpart funds 0 913, , Total Receipts Payments l,914,000,000. 1,914,000,000. 1,466,778, ,221, I.Goods, Works, Training 1,875,000,000. 1,875,000,000. and services for Partl a,b(i) 471,960, ,403,039, and b(iv), c and f 2. Goods,Works,Training 2,200, ,200, ,038, , and services for Part! b(ii) 3. Goods,Works,Training and services for Partl b(iii) 4. Goods, Works and services for Partl e (ii) 5. Goods, Works and services for Partl d Total Payments 2,800, ,800, ,705, , ,000, ,000, ,999, ,914,000,000. 1,914,000, ,703, ,413,025, %of Variance f=e/c% % % 0.00% % % -7.33% -3.39% 0.00% 0.00% % Note: The significant budget utilisation/performance differences in the last column are explained in Annex 1 to these financial statements. ;~/\,(\_.. ' ~----~: I\, / \~,, \.:::~,,/ ~".;,l ( ~~ ~l)t vvi:11l~,j' Project Coor4ifiator /"'"' -P-ro-~-ec_t_Ar-cc~ou~n-t_an_t Date Date 13

19 8. NOTES TO THE FINANCIAL STATEMENTS The principal accounting policies adopted in the preparation of these financial 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 bas 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 comprise 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 yearfperiod. 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. 14

20 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. vm. 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,

21 8.2 RECEIPTS FROM GOVERNMENT OF KENYA These represent counterpart funding and other receipts from government as follows: The counterpart Funds received were utilised in the WaSSIP 1 account which was concluded in June The balance is carried over to WaSSIP AF amounting to Ksh 913, PROCEEDS FROM DOMESTIC AND FOREIGN GRANTS During the 12 months to 30 June 2014 we received grants from donors as detailed in the table below: Grants Received from International Development Association DA October ,962, ,018, Nil Nil 259,018, ,938, Total 2,962, ,018, ,018, ,938,

22 8.4 LOAN FROM EXTERNAL DEVELOPMENT PARTNERS During the 12 months to 30 June 2014 we received. funding from development partners in form of loans negotiated by the National Treas donors as detailed in the table below: Loans Received from Bilateral Donors (Foreign Gow:ernments Kshs Kshs Kshs Kshs Grants Received from International Development Association A) 3 l,451, ,750,110, Nil 2,750,110, ,500, Total 3 I,451, ,750,110, Nil 2,750,110, ,500, MISCELLANEOUS RECEIPTS Kshs 2013/14 Kshs 2012/13 to-date Cumulative Interest on deposits 2,282, ,282, ,282, ,282,

23 NOTES TO THE FINANCIAL STATEMENTS (Continued) 8.6 COMPENSATION OF EMPLOYEES (Continued) The project is managed by the staff of Athi Water Services Board and the project does not offer compensation to the employees PURCHASE OF GOODS AND SERVICES The goods and services components are classified in the various components as required in the financing agreement. 8.8 SOCIAL SECURITY BENEFITS Not applicable 8.9 ACQUISITION OF NON-FINANCIAL ASSET The Non-Financial assets wiucomprise of the works being undertaken and this have been classified in the various components as required in the financing agreement Transfers to other government entities During the 12 months to 30th June 2014, no transfers were done to other government entities. The board is allowed under the financing agreement to act as a procurement agent for the Water Services Regulatory Board (W ASREB), Water Appeals Board (W AB), Tana Water Services Board and Tanathi Water Services Board Other grants and transfers and payments Not applicable 18

24 8.12 CASH AND CASH EQUIVALENTS C/FWD Actual Cash Balances 2013/14 IDA USD-Designated account 1,223,211, Project Account 1,162,156, Others (e.g. Imprest, advances etc) Actual Total Closing Cash Balance 2,385,367, /13 60, ,021, ,081, A CASH AND CASH EQUIVALENTS C/FWD (Continued) Bank Accounts 2013/14 Kshs 2012/13 Kshs Foreign Currency Accounts CFC Stanbic kenya [Ale No ] 1,223,211, , Total Foreign Currency balances 1,223,211, , Local Currency Accounts Kenya Commercial Bank [Ale Nol ,162,156, ,021, Total local currency balances 1,162,156, ,021, Total bank account balances 2,385,367, ,081, The Bank balance represent the project funds that were in the account as at 30 1 h June The Designated account for the project is maintained by the Central Bank Of Kenya and is denominated in US Dollars while the project Account is maintained at the Kenya Commercial Bank and is denominated in Kenya Shillings. 13 PENDING BILLS (Annex 2A) 2013/ /13 Ksh Kshs Construction of buildings NIL Nil Construction of civil works 367,848, Nil Supply of goods 181,647, Nil Supply of services 57,399, Nil 606,895, Nil 19

25 14 OTHER PENDING PAYABLES (Annex 2C) Not applicable 2013/ /13 Kshs Kshs xxx xxx 20

26 Statement of Budget Performance ANNEX 1 - VARIAN CE EXPLANATIONS - COMPARATIVE BUDGET AND ACTUAL AMOUNTS Final Budget a I I Actual on Comparable Basis b Budget Utilisation Variance % of Utilisation Variance to Final Budget c-a-b d=c/a % I Comments on Variance IDA Interest Gok counterpart funds l,914,000, ,463,581, ,282, , ,418, % 2,282, % 913, % Total receipts l,914,000, ,466,778, ,221, % Goods,Works,Training and services for Partl a,b(i) and b(iv), c and f 1,875,000, ,960, ,403,039, % The Variance was due to the Contract for Northern collector for Ksh billion and Muranga Water Supply worth 728 Million that Goods, Works, Training and services for Partl b(ii) Goods,Works,Training and services for Part I b(iii) Goods, Works and services for Partl e (ii) Goods, Works and services for Partl d Total payment 2,200, ,800, ,000, ,914,000, ,038, I - 2,705, ,999, ,703, , I -7.33% -95, % % % -1,413,025, % 21

27 For thejinancialyear ended June 30, 2014 ANNEX 2A - ANALYSIS OF PENDING BILLS Supplier of Goods or Services '{:y;i% I I I I Original Amount I Date Contracted I Amount Paid To- Date a b c d=a-c... Shianxi geological engineering 338,148, /23/ ,892, ,255, NIL Turn 0 metal 30,936, /04/ ,936, NIL Nakuru express 281,908, /27/ ,585, ,322, NIL Machine center 60,495, /07/ ,468, ,026, NIL NGM 60,495, /19/ ,295, ,199, NIL Oriental 51,878, /18/ ,419, ,45 8, NIL InstaPump Engineering 113,674, /20/ ,026, ,647, NIL Sub-Total 937,536, >.::~: J.\\ i> >. y. );)J. j... ;./ Outstanding Outstanding Balance Balance I Comments ,848, General Motors E.A Ltd I 94,372, /03/ ,382, ,010, I NIL ASL I 69,730, /14/ , 730, I NIL Doschi Enterprises 91,544, /26/ ,544, NIL prodigitech 28,933, /09/ ,933, NIL Davis & shirtliff 46,159, /27/ ,159, NIL Sub-Total 330,740, ";i~ \'; i 'i 1 ' 1 (fif1~i ;i' 0 ':;;:~~ i:j;' T.' 181,647, SMEC 18,362, /23/ ,690, ,672, NIL Ernst & young with gibb 13,439, /31/2013 2,687, ,751, NIL Ernst & young with gibb 15,958, /31/2013 3,191, ,767, NIL - Vas consultants 3,695, /31/ , ,956, NIL Vas consultants 7,035, /31/2013 1,407, ,628, NIL 22

28 Amount Paid To- Supplier of Goods or Services I Original Amount I Date Contracted I Date a b c Jurassic Engineering 5,102, /10/2013 3,846, frame 39,375, /05/ ,385, Lujo 3,932, /27/2013 2,556, Jurassic 7,554, /10/2013 3,553, Sub-Total 114,456, Grand Total 1,382,733,354.38,,,,,,,,, Outstanding Outstanding Balance Balance I Comments d=a-c 1,256, NIL 14,990, NIL 1,376, NIL 4,001, NIL 23