KENYA NATIONAL AUDIT OFFICE

Transcription

1 Public Disclosure Authorized REPUBLIC OF KENYA KENYA NATIONAL AUDIT OFFICE Public Disclosure Authorized Public Disclosure Authorized REPORT OF THE AUDITOR-GENERAL ON THE FINANCIAL STATEMENTS OF HEALTH SECTOR SUPPORT PROJECT - SWAP SECRETARIAT (IDA CR.N KE) Public Disclosure Authorized FOR THE YEAR ENDED 30 JUNE 2014 MINISTRY OF HEALTH

2 REPUBLIC OF KENYA Telephone: Fax: oag@oagkenya.go.ke Website: P.O. Box NAIROBI KENYA NATIONAL AUDIT OFFICE REPORT OF THE AUDITOR-GENERAL ON HEAL TH SECTOR SUPPORT PROJECT -SWAP SECRETARIAT (IDA CR.N KE) FOR THE YEAR ENDED 30 JUNE MINISTRY OF HEAL TH REPORT ON THE FINANCIAL STATEMENTS I have audited the accompanying financial statements of the Health Sector Support Project - SWAP Secretariat Credit No KE set out on pages 1 to 12, which comprise the statement of financial assets and liabilities as at 30 June 2014, and the statement of receipts and payments, statement of cash flows, statement of comparative budget and actual amounts and special account statement for the year then ended, and a summary of significant accounting policies and other explanatory information in accordance with the provisions of Article 229 of the Constitution of Kenya, Section 8 of the Public Audit Act, 2003 and Schedule 11, Section II (B) of the Financing Agreement No.4771-KE dated 5 July 2010 between the 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 Treasury, Accounting Officer - Ministry of Health and 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 preparation of financial statements that are free from material misstatement, whether due to fraud or error. The management is also responsible for the submission of the financial statements to the Auditor-General in accordance with the provisions of Section 7 of the Public Audit Act, 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 9 of the Public Audit Act, The audit was conducted in accordance with International Standards on Auditing. Those standards require compliance with ethical requirements and that the audit be planned and performed to obtain reasonable assurance about whether the financial statements are free from material misstatement. Promoting Accountability in the Public Sector

3 I< 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 judgement, 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 Project'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 the 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 that the audit evidence obtained is sufficient and appropriate to provide a basis for my audit opinion. Opinion In my opinion, the financial statements present fairly, in all material respects, the financial position of the Project as at 30 June 2014, its financial performance and its cash flows for the year then ended in accordance with International Public Sector Accounting Standards {Cash Basis) and comply with the Financing Agreement No ' KE dated 5 July2010. In addition, the special account statement presents fairly, transactions for the year and the ending balance has been reconciled with the books of account. Emphasis of Matter I draw attention to Note 8.78 to the financial statements which indicates Imprest and Advances balance of Kshs.1,684,394 out of which imprest of Kshs.170,998 has been outstanding foroverthree (3) years. Consequently, the recoverability ofthe balance of Kshs.170,998 appears doubtful. My opinion is not qualified in respect of this matter. 1(~ ~ ~-r~... Edward. R. 0. Ouko, CBS AUDITOR-GENERAL Nairobi 19 December

4 KENYA HEALTH SECTOR SUPPORT PROJECT SW Ap SECRETARIAT CREDIT NUMBER: KE 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)

5 Kenya Health Sector Support Project SWAp Secretariat For the financial year ended June 30, 2014 Contents I. PROJECT INFORMATION AND OVERALL PERFORMANCE....ii 2. ST A TEMENT OF PROJECT MANAGEMENT RESPONSIBILITIES... vi 3. REPORT OF THE INDEPENDENT AUDITORS ON THE KHSSP PROJECT SWAp SECRETARIAT... vii 4. STATEMENT OF RECEIPTS AND PAYMENTS FOR THE YEAR ENDED 30TH JUNE STATEMENT OF FINANCIAL ASSETS AND LIABIUTlES AS AT 30TH JUNE STATEMENT OF CASHFLOW FOR THE YEAR ENDED 30rn JUNE STATEMENT OF COMPARATIVE BUDGET AND ACTUAL AMOUNTS NOTES TO THE FINANCIAL STATEMENTS Statement of compliance and basis of preparation Loan from External Development Partners Miscellaneous Receipts Compensation of Employees Purchase of Goods and Services... ~ Acquisition of Non-Financial Assets Cash and Cash Equivalents C/FWD A Bank Accounts B Outstanding Imprests and Advances... } 0 9. PROGRESS ON FOLLOW UP OF AUDITOR RECOMMENDATIONS... 11

6 Kenya Health Sector Support Project -SWAp Secretariat For ended June PROJECT INFORMATION AND OVERALL PERFORMANCE 1.1 Name and registered office Name: The Kenya health Sector Support Project- SWAp SECRETARIAT. Objective: The key objective of the project is to reduce health inequalities and to reverse the downward trend in the health of Kenyan people. Address: The project headquarters offices are Nairobi (city), Nairobi County, Kenya. The address of its registered office is: Ministry of Health P.O. Box Nairobi. The project is based at the National Level. The project is based at the National Level but it supports all the facilities at the Lower levels of service i.e. Level 1, 2, 3, Sub District Hospitals and the other higher levels Contacts: The following are the project contacts Telephone: (254) Website: Project Information Pro ect Start Date: The ro ect start date is 30th Se tember, 2010 Pro ect End Date: The ro ect end date is 31 ST December, 2016 Pro'ect Mana er: The ro ect mana er is Dr Peter Kimuu Pro ect S onsor: The ii

7 Kenya Health Sector Support Project - SWAp Secretariat For the financial year ended June 30, Project Overview Line Ministry/State Department of the project Project number Strategic goals of the project Achievement of strategic goals The project is under the supervision of the Ministry of Health. CR The strategic goals of the project are as follows: (i) To ensure an improved Health services to the Kenyan population especially the poor. (ii) To reduce Health inequity The project management aims to achieve the goals through the following means: (i) By improving health services and strengthening systems. (ii) Providing funds to NHF to pay for the poor. (iii) Improving referral systems. (iv) Improving environmental Health systems. I Other important The project operates within a sector wide approach. The foundation is laid background down in the National Health Sector Strategic Plan information of the project I I Current situation that the project was formed to intervene The project was formed to intervene in the following areas: (i) The Health of the Kenyan people has improved especially the large population of the Kenyan people (poor) can now access medical attention for free. (ii) The project has provided financing to commodities and has strengthened the logistics system. I Project duration The project started on 30th September 2010 and is expected to run until 31st December Bankers The following are the bankers for the current year: (i) Co-operative Bank 1.5 Auditors The project is audited by the Kenya National Audit Office 111

8 Kenya Health Sector Support Project - SWAp Secretariat For ended June Roles and Responsibilities List the different people who will be working on the project. This list would include the project manager and all the key stakeholders who will be involved with the project. Also, record their role, their positions, and their contact information. Names Title designation Key Responsibilities qualification Dr. Peter Kimuu Head, Directorate MB chb, Msc Project oversight and overall of policy, planning coordination of activities of and Health care the Directorate and Project Financing. Coordinator Josephine Nyambane Project B.Com and CPA Preparation of Financial Accountant (K) reports as required from time to time e.g. IFR, Bank reconciliation, exchequer requisition, Vote book. ' preparation of project FIS, responding to Audit issues etc Kevin Ogollah Accountant CPA II Preparation of Quarterly reports e.g. IFR (Interim Financial Report),Bank reconciliations, Voucher preparation, processing Aulgah Achieng Accountant CPA TI Voucher preparation, processing and filing. iv

9 Kenya Health Sector Support Project - SWAp Secretariat For the financial year ended June 30, Funding summary The Project is for duration of 6 years from 2010 to 2016 with an approved budget of US$ 217,800, equivalent to Kshs 18,948,600, as highlighted in the table below: Below is the funding summary: - (i) Loan USD USD IDA ,000, ,700,000, ,288, ,464,058, i,711, ,941, IDA ,800, ,941,600, ,380, ,556,073, ,419, ,385,526, IDA KE 61,000, ,307,000, ,000, ,307,000, TOTAL 217,800, ,948,600, ,668, ,020, 132, ,131, ,928,467, USD=KSH Summary of Overall Project Performance: Over ambitious work plan The Project was able to achieve the targeted objectives as they were set in the work plan of 2013/ Summary of Project Compliance: The project complied with applicable laws and regulations, and essential external financing agreements/covenants and this helped us to achieve the objectives set. v

10 Kenya Health Sector Support Project - SWAp Secretariat For the.financial year ended June 30, STATEMENT OF PROJECT MANAGEMENT RESPONSIBILITIES The Principal Secretary for the Ministry of Health and the Project Coordinator for Kenya Health Sector Support project SWAp Secretariat 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 Principal Secretary for the Ministry of Health and the Project Coordinator for Kenya Health Sector Support project - SWAp Secretariat 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 Principal Secretary for the Ministry of Health and the Project Coordinator for Kenya Health Sector Support project- SWAp Secretariat 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 Principal Secretary for the Ministry of Health and the Project Coordinator for Kenya Health Sector Support project - SWAp Secretariat 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 Principal Secretary for the Ministry of Health and the Project Coordinator for Kenya Health Sector Support project SW Ap Secretariat 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 Principal Secretary for the Ministry of Health and the Project Coordinator for Kenya Health Sector Support project - SWAp Secretariat on 2014 and signed by them. ~-t"--~r----.-~~-----~~~. K dijah Kassachoon incipal Secretary Project Coordinator vi

11 Kenya Health Sector Support Project - SWAp Secretariat For the financial year ended June 30, REPORT OF THE INDEPENDENT AUDITORS ON THE KHSSP PROJECT - SW Ap SECRETARIAT REPORT ON FINANCIAL STATEMENTS We have audited the accompanying financial statements of Kenya Health Sector Project - SW Ap Secretariat, set out on pages X to X which comprise the statement of receipts and payments for the financial year/period ended June 30, 2014, and a summary of significant accounting policies and other explanatory notes. Responsibility for the Financial Statements The Principal Secretary for the Ministry of Health and the Project Coordinator for Kenya Health Sector Support project - SW Ap Secretariat are responsible for the preparation and fair presentation of these financial statements in accordance with International Public Sector Accounting Standards (IPSAS). This responsibility includes designing, implementing and maintaining internal controls relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error, selecting and applying appropriate accounting policies, and making accounting estimates that are reasonable in the circumstances. Auditor's Responsibility Our responsibility is to express an independent opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depended on our professional judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, we considered the internal controls relevant to the company's preparation and fair presentation of the financial statements in order to design audit procedures that were appropriate in the circumstances, but not for the purpose of expressing an opinion on the company's internal controls. An audit also includes evaluating the appropriateness of accounting polices used and the reasonableness of accounting estimates made by the management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to proviqe a basis for our audit opinion. Opinion In our opinion the accompanying financial statements give a true and fair view of the state of financial affairs of the Kenya Health Sector Project - SW Ap Secretariat for the financial year/period ended June 30, 2014 in accordance with International Public Sector Accounting Standards (IPSAS). vu

12 Kenya Health Sector Support Project - SWAp Secretariat For the financial year ended June 30, 2014 REPORT ON PROJECT PERFORMANCE AND VALUE FOR MONEY ACHIEVEMENT Based on our audit, we report that nothing came to our attention to indicate substantial nonachievement of value for money objectives. However, we identified a few minor cases of nonachievement of value for money objectives, which have been included in our separate Management Letter to The Principal Secretary for the Ministry of Health and the Project Coordinator for Kenya Health Sector Support project SW Ap Secretariat. REPORT ON COMPLIANCE WITH APPLICABLE LAWS AND REGULATIONS Based on our audit, we report that nothing came to our attention to indicate substantial noncompliance with applicable laws and regulations, as well as essential external financing covenants. However, we identified a few minor cases of non-compliance, which have been included in our separate Management Letter to The Principal Secretary for the Ministry of Health and the Project Coordinator for Kenya Health Sector Support project - SW Ap Secretariat REPORT ON CONTRACTS WITH DEBARRED FIRMS Based on our audit, we report that nothing came to our attention to indicate that debarred firms, both by the government and external financiers, were awarded any contracts under the Project during the financial year/period under review. Auditor General, KENYA Date Vlll

13 Kenya Health Sector Support Project -SWAp Secretariat For the financial year ended June 30, STATEMENT OF RECEIPTS AND PAYMENTS FOR THE YEAR ENDED 30TH JUNE 2014 RECEIPTS Loan from external development partners Notes Ksbs 286,500, Ksbs Cumulative to date Ksbs 723,630, Miscellaneous receipts , , , Total receipts PAYMENTS 286,516, , ,66 7, Compensation of employees 8.4 Purchase of goods and services 8.5 Acquisition of non-financial assets 8.6 l,060, ,238, ,085, , ,568, ,922, ,215, ,938, ,562, TOTAL PAYMENTS 107,384, ,646, ,716, SURPLUS/DEFICIT FOR THE YEAR 179,131, (121,636,295.14) 273,950, The accounting policies and explanatory notes to these financial statements are an integral part of the financial statements. Dr.P~;muu Project Coordinator Date

14 Kenya Health Sector Support Project-SWAp Secretariat For ended June STATEMENT OF FINANCIAL ASSETS AND LIABILITIES AS AT 30TH JUNE 2014 Notes 2014 Kshs 2013 Kshs FINANCIAL ASSETS Cash and Cash Equivalents Bank Balances Imprests and Advances TOT AL FINANCIAL ASSETS 8.7A 8.7B 272,266, ,950, ,592, ,818, REPRESENTED BY: Cash and cash equivalents b/fwd ,818, ,455, Surplus/Deficit for the year Prior year adjustments NET FINANCIAL POSITION 179,131, ,950, (121,636,295.14) 94,818, The accounting policies and explanatory notes to these financial statements form an integral part of the financial statements. The financial statements were approved on 2014 and signed by: 11.11;~Jn..assachoon al Secretary Dr.Pf;imuu Project Coordinator Date 2

15 Kenya Health Sector Support Project - SWAp Secretariat For the financial year ended June 30, STATEMENT OF CASHFLOW FOR THE YEAR ENDED 30TH JUNE Notes Kshs Receipts for operating income Miscellaneous receipts , Kshs 10, Payments for operating expenses Compensation of employees Purchase of goods and services (1,060,914.39) (103,238,014.50) (154,947.40) (116,568,933.74) Net cash flow from operating activities (104,282,428.89) (116,713,381.14) CASHFLOW FROM INVESTING ACTIVITIES Acquisition of Assets Net cash flows from Investing Activities 8.6 (3,085,868.00) (3,085,868.00) ( 4,922,914.00) ( 4,922,914.00) CASHFLOW FROM BORROWING ACTIVITIES Loan from external development partners Net cash flow from financing activities ,500, ,500, ,455, ,455, NET INCREASE IN CASH AND CASH EQUIVALENT 179,131, ,818, Cash and cash equivalent at BEGINNING of the year Cash and cash equivalent at END of the year 94,818, ,950, ,818, The ace nting policies and explanatory notes to these financial statements form an integral part of the financial statements. The entity fi anci I statements were approved on 2014 and signed by: D<.tKimuu Project Coordinator Date 3

16 Kenya Health Sector Support Project- SWAp Secretariat For ended June STATEMENT OF COMPARATIVE BUDGET AND ACTUAL AMOUNTS Actual on 0 /o of Receipts/Payment Comparable Varianc s Item Ori2inal Bud2et Adjustments Final Bud2et Basis Variance e a b c=a+b d e=d-c f=e/c % Receipts Proceeds from _borrow~---- -~28,425, ,425, ,500, > (541,925,000.00) (65.42) Total Receiots 828,425, ,425, ,500, (541,925,000.00) Payments Compensation of emolovees 2,500, ,500, ,060, (l,439,085.61) Purchase of goods and services 168,500, ,500, ,238, (65,261,984.42) Acquisition of nonfinancial assets 5,000, ,000, ,085, (1,914,132.00) Total Payments 176,000, ,000, ,384, (68,615,202.03) Note: The si nificant budget utilization/performance differences in the last column are explained in Annex 1 to these financial Project Coordinator Date 4

17 Kenya Health Sector Support Project - SWAp Secretariat For the financial year ended June 30, 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 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. 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 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

18 Kenya Health Sector Support Project- SWAp Secretariat For the.financial year ended June 30, 2014 SIGNIFICANT ACCOUNTING POLICIES (Continued) 111. 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. iv. 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. v. 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,

19 Kenya Health Sector Support Project - SWAp Secretariat For the financial year ended June 30, 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 Treasury donors as detailed in the table below: - Loans Received from Bilateral Donors (Foreign Governments Insert name of foreign Government 1/l/2014 Loans Received from Multilateral Donors (International Or aoisations IDA - WORLD BANK TOTAL 10/1/ ,500, ,500, ,455, , , ,455, Miscellaneous Receipts Property iricome Sales of goods and services Administrative fees and charges Fines, penalties and forfeitures Voluntary transfers other than grants FY 2013/14 Kshs FY 2012/13 Kshs Cumulative Kshs - Other receipts not classified elsewhere 16, , , , , ,

20 Kenya Health Sector Support Project- SWAp Secretariat For the financial year ended June 30, 2014 NOTES TO THE FINANCIAL STATEMENTS (Continued) 8.4 Com12ensation of Em12loyees 2013/ /13 Cumulative Kshs Ksbs to-date Basic wages of temporary employees 1,055, , ,210' 10 l. 79 Compulsory national health insurance schemes 5, , TOTAL 1,060, , ,215, Foreign Purchase of Goods and Services 2013/ /13 Cumulative Kshs Ksbs to-date Communication, supplies and services 391, , ,076, Domestic travel and subsistence 33, 172, ,604, ,143, travel and subsistence 1,356, ,788, Professional fee 59,657, ,489, ,532, Printing, advertising and information supplies & services 2,203, ,145, ,749, Rentals of produced assets... Training expenses 2,533, ,277, ,270, Hospitality supplies and services 1,497, , ,731, Other operating expenses 662, , ,203, Routine maintenance - vehicles and other transport equipment 1,595, ,265, ,273, Routine maintenance - other assets 168, , Exchange rate losses/gains (net) - TOTAL 103,238, ,568, ,938,

21 Kenya Health Sector Support Project- SWAp Secretariat For the financial year ended June 30, 2014 NOTES TO THE FINANCIAL STATEMENTS (Continued) 8.6 Acguisition of Non-Financial Assets 2013/ /13 Cumulative Kshs Kshs to-date Purchase of vehicles & other transport equipment Purchase of office furniture 98,039, & general equipment 3,085, ,922, ,523, ,085, ,922, ,562, NOTES TO THE FINANCIAL STATEMENTS (Continued) 8.7 Cash and Cash Equivalents C/FWD 2013/14 Kshs 2012/13 Kshs Bank accounts (Note 8.7 A) Outstanding Imprests and advances (Note 8.7 B) Total 272,266, l ,684, ,950, ,592,316.l 7 226, ,818, CASH AND CASH EQUIVALENTS C/FWD (Continued) 2013/ /13 Kshs Kshs 8.7 A Bank Accounts Foreign Currency Accounts Co-operative Bank of Kenya [A/c No...] Total Foreign Currency balances Local Currency Accounts Co-operative Bank of Kenya [A/c No...] 272,266, ,592, Total local currency balances 272,266, ,592, Total bank account balances 272,266, ,592,

22 Kenya Health Sector Support Project - SWAp Secretariat For the financial year ended June 30, B Outstanding Imprests and Advances ~'- Name of Officer or Due Date of Amount Balance Balance Institution Amount Taken Surrender Surrendered PETER MBUGUA 170, rd June, th November, - 170, AMOSOBAGE 42, , PHILLIP 13th November, -~ ODHIAMBO 97, , th November, - MICHAEL GIT AU 164, , JOHNSTONE 13th November, NDUMA 67, , th November, WILSON MAIW A 70, th November, 70, JAMES KAGWIMA 247, , , th March, ~ DENNIS SIMUYU 22, , ALLAN KOBIY A 22, th March, rd April, 22, ALLAN KOBIY A 338, , JACKSON - MURIITHI 225, th Mav, , JAMES MACHARIA KIRA GU 30, th Mav, , MICHAEL MW ANIA 130, th Mav, , KEPHA - Total OMBACHO 60, th May, , ANNE GATHONI 178, th June, , , ,865, , ,684, ,

23 Kenya Health Sector Support Project- SWAp Secretariat Statement of Budget Performance For the year ended June 30, 20Xl 9. PROGRESS ON FOLLOW UP OF AUDITOR RECOMMENDATIONS The following is the summary of issues raised by the external auditor, and management comments that were provided to the auditor. We have nominated focal persons to resolve the various issues as shown below with the associated time frame within which we expect the issues to be resolved. Reference No. on the I Issue I Observations from I Management external audit Report Auditor comments NONE Focal Point person to resolve the issue (Name and designation) Status: (Resolved I Not Resolved) Timeframe: (Put a date when you expect the issue to be resolved) aa.r;j«ll Kassachoon mcipal Secretary ff} It ;r/r;fo I <f MTV-IV I f-. Dr. Peth Kimuu Project Coordinator Date 11

24 1 1 t Kenya Health Sector Support Project - SW Ap Secretariat Ff!r the financial year ended June 30, 2014 ANNEX 1 - VARIANCE EXPLANATIONS - COMPARATIVE BUDGET AND ACTUAL AMOUNTS RECEIPTS DURING THE YEAR/PERIOD. %of Budget Utilisation Actual on Utilisation Variance to I Final Budget Comparable Basis Variance Final Budget Comments on Variance a b c=a-b d=c/a % Government of Kenya External financing - IDA (WORLD BANK) 828,425, ,318, , 106, Total receipts 828,425, ,318, ,106, J PAYMENTS DURING THE YEAR/PERIOD. Compensation of employees 2,500, ,060, ,439, Pension and other social security contributions 168,500, l 03,238, ,269, Social security benefits 5,000, ,085, ,914, Total payments 176,000, ,384, ,623, Explain all variance beyond 50% (i) COMPENSATION OF EMPLOYESS- VARIANCE 57.56% Due to technicalities with the contract to employ the KHSSP accountant, the letters to employ the accountants came late hence most of the accountants were not paid by the end of financial year 2013/14. 12

25 - - SPECIAL ACCOUNT STATEMENT For period ending Account No. Depository Bank Address Related Loan Credit Agreement Currency 30th JUNE, COOP BANK OF KENYA H/Q, HAILE SELASSIE AVE. HEALTH SEC.SUPPORT IDA - CR KE C (HSS) USO Part A - Account Activity Beginning balance of 1st July, 2013 as per C.B.K. Ledger Account Add: Total Amount deposited by World Bank 0.00 Total Interest earnings if deposited in account Total amount refunded to cover ineligible expenditure Deduct: Total amount withdrawn?_,_?_g_?..~~q~:gq Total service charges if not included above in amount withdrawn Ending balance on 30th June, ~-~1~-~-~l-~-~l?.:Q~_ AUTHORISED REPRESENTATIVE CENTRAL BANK OF KENYA AUTHORISED REPRESENTATIVE EXTERNAL RESOURCES DEPARTMEN~TREASURY SIGNATURE: DATE SIGNATURE: DATE JtL~_t. t:t NOTE:The ending balance as per Central Bank of Kenya Ledger Account and the off-shore Special Account as at 30th June,2014 have been reconciled and a copy of the supporting Reconciliation Statement is attached

26 HEALIB SECTOR SUPPORT PROJECT (SW AP) PROJECT STATEMENT OF SPECIAL (DESIGNATED) A COUNT RECONCILIATION FOR THE YAERENDED 30th JUNE 2014 PART B: ACCOUNT RECONCILIATION STATEMENT ( lf )0 I Credit No. IDA LOAN CREDIT N KE 'DA-CC' Bank Account No Held with COOPERATIVE BANK NAIROBI NOTES us$ 1. Amount advanced by IDA 22,563, Less: Total amount recovered by IDA 4,606, Outstanding amount advanced to Special Account 17,956, Represented by: Ending Special Account Balance as at 30th June ,461, Amounts claimed but not credited as at 30th June 2014: 6. Amounts withdrawn and not claimed 6,495, Service charges (if not included in lines 5 and 6 above Interest earning (if included in Special Account) Total advance to Special Account year ended 30th June ,956, Discrepancy between total appearing on lines 3 and 9 1. Explain any discrepancy between totals appearing on lines 3 and 9 above (e.g. amount due to be refunded to cover ineligible expenditures paid from the Special /Designated. Account) 2. Indicate if amount appearing on line 6 are eligible for financing by the IDA_and provide reasons for not claiming the expenditures The amount appearing on line tj are eligible lor linancing by the World Bank and 1hall be documented in the 1ub1equent /FR'S ~ AUIB~RES-::=:::E-NT_A_TI-~ EXTERNAL RESOURCES DEPARTMENT-TREASURY ij. (v 1 tr w DATE:....

27 .. CENTRAL BANK QI' KENYA RECONCILIATION OFF-SHORE A/C NO: DETAILS I.BALANCE AS PER OFFSHORE STATEMENT: CURRENCY USO STATEMENT lls AT: G.lA/C NO: 30(06/ HEAL TH SECTOR SUPPORT PROJ, C AMOUNTS REMARKS ACTION TAKEN 11,461, DEG ITS NOT IN NRB.HESS CREDITS NOT ln NRB l.i\rlo DlBl1 S NOT IN Qf'CSHORE 'i.l rss CPE01T5 NOT ln OFfSHOP[ 6.BllLANCE AS PER CRK ledger D;,te: 7 /7 / ,461, ,461, App,o.od BY' ~ Date: \ ~{ / Lf