KENYA NATIONAL AUDIT OFFICE

Transcription

1 Pubic Discosure Authorized Pubic Discosure Authorized Pubic Discosure Authorized REPUBLC OF KENYA KENYA NATONAL AUDT OFFCE REPORT OF THE AUDTOR-GENERAL ON THE FNANCAL STATEMENTS OF NATONAL URBAN TRANSPORT MPROVEMENT PROECT DA CREDT N KE (KRC COMPONENT) Pubic Discosure Authorized FOR THE YEAR ENDED 30 UNE 2014 KENYA RALWAYS CORPORATON

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3 11 f ff r L { EN Y._~ R,_\. L \V,_\. Y S f. L NATONAL URBAN TRANSPORT MPROVEMENT PROECT (NUTRP) MPLEMENTNG ENTTY: KENYA RALWAYS CORPORATON. PROECT GRANT/CREDT NUMBER: DA ANNUAL REPORT AND FNANCAL STATEMENTS L FOR THE FNANCAL YEAR ENDED UNE 30, 2014 Prepared in accordance with the Cash Basis of Accounting Method under the nternationa Pubic Sector Accounting Standards (PSAS)

4 ' ' ' Nationa Urban Transport mprovement Project (NUTRP) Credit NO. DA Reports and Financia Statements For the financia period ended une 30, 2014 ' ' REPORT OF THE NDEPENDENT AUDTORS ON THE NUTRP PROECT. 11 '. 1 i ) " V

5 REPUBLC OF KENYA. eephone: Fax: E-Mai : oag@oagkenya.go.ke Website: P.O. Box NAROB OFFCE OF THE AUDTOR-GENERAL REPORT OF THE AUDTOR-GENERAL ON NATONAL URBAN TRANSPORT MPROVEMENT PROECT DA CREDT NO KE (KRC COMPONENT) FOR THE YEAR ENDED 30 UNE 2014-KENYA RALWAYS CORPORATON REPORT ON THE FNANCAL STATEMENTS have audited the accompanying financia statements of Nationa Urban Transport mprovement Project set out on pages 2 to 9, which comprise the statement of financia assets and iabiities as at 30 une 2014, and the statement of receipts and payments, statement of cash fows, the statement of comparison of budget and actua amounts for the year then ended, and a summary of significant accounting poicies and other expanatory information in accordance with provisions of Artice 229 of the Constitution of Kenya and Section 14 of the Pubic Audit Act, 2003, and the Credit Agreement No KE signed on 26 September 2012 between the nternationa Deveopment Association (DA) and the Repubic of Kenya (GOK). have obtained a the information and expanations which, to the best of my knowedge and beief, were necessary for the purpose of the audit. Management's Responsibiity for the Financia Statements Management of the Kenya Raiways Corporation and the Project Team eader for NUTRP are responsibe for the preparation and fair presentation of these financia statements in accordance with nternationa Pubic Sector Accounting Standards (Cash Basis) and for such interna contro as management determines is necessary to enabe the preparation of financia statements that are free from materia misstatement, whether due to fraud or error. The Management is aso responsibe for the submission of the financia statements to the Auditor-Genera in accordance with the provisions of Section 13 of the Pubic Audit Act, Auditor-Genera's Responsibiity My responsibiity is to express an opinion on these financia statements based on the audit and report in accordance with provisions of Section 15 of the Pubic Audit Act, The audit was conducted in accordance with nternationa Standards on Auditing. Those standards require compiance with ethica requirements and that the audit be panned and performed to obtain reasonabe assurance about whether the financia statements are free from materia misstatement. An audit invoves performing procedures to obtain audit evidence about the amounts and discosures in the financia statements. The procedures seected depend on the auditor's judgement, incuding the assessment of the risks of materia misstatement of Pro11101ing,ccou111abi/i1y in 1/re Pubic Sec/or

6 the financia statements, whether due to fraud or error. n making those risk assessments, the auditor considers interna contro reevant to the entity's preparation and fair presentation of the financia 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 interna contro. An audit aso incudes evauating the appropriateness of accounting poicies used and the reasonabeness of accounting estimates made by the management, as we as evauating the overa presentation of the financia statements. beieve that the audit evidence obtained is sufficient and appropriate to provide a basis for my audit opinion. Opinion n my opinion, the financia statements present fairy, in a materia respects, the financia position of the Project as at 30 une 2014, and its financia performance and its cash fows for the year then ended, in accordance with nternationa Pubic Sector Accounting Standards (Cash Basis) and conform to the Credit Agreement No KE. Specia Account Statement Certificate The specia account statement presents fairy, the ending baance of USD.649,990 as at 30 une 2014 and agrees with the statement of specia account activity for the year then ended. Emphasis of Matter Deay in Project mpementation Athough the financing agreement for Credit No KE between the Repubic of Kenya and nternationa Deveopment Association (DA) was signed on 26 September 2012, an amount of USD.649,990 remained hed in the specia account as at 30 une The USD.649,990 (equivaent to.58,378,509) was transferred to Kenya Raiways Corporation NUTRP bank account on 22 December 2014 and the baance has been confirmed correct. My opinion is not quaified in respect of this matter. ~ Edward R.O. Ouko, CBS Auditor-Genera Nairobi 22 May

7 (-.. Nationa Urban Transport mprovement Project (NUTRP) Credit NO. DA (" Reports and Financia Statements For the financia period ended une 30, STATEMENT OF RECEPTS AND PAYMENTS FOR THE PEROD ENDED 30TH UNE 2014 CASH BALANCE B/F cumm to date ) RECEPTS Government Counterpart funds Externa Assistance DA Funds(Transfer from specia Account) DA Direct payments Other Receipts Tota receipts PAYMENTS Training of Staff Bank Charges 8 TOT AL PAYMENTS _j CASH BALANCE C/F The accounting poicies and expanatory notes to these financia statements are an integra part of the financia statements Signed; Projects accountant Date am eader Date 2

8 Nationa Urban Transport mprovement Project (NUTRP) Credit NO. DA Reports and Financia Statements For the financia period ended une 30, STATEMENT OF FNANCAL ASSETS & LABLTES FOR THE PEROD ENDED 30TH UNE 2014 Note FNANCAL ASSETS Cash and Cash Equivaents Bank Baances Cash Baances Cash Equivaents TOT AL FNANCAL ASSETS REPRESENTED BY Cash and cash equivaent b/fwd Surpus /Deficit for the year Prior year adjustments NET FNANCAL POSTON The accounting poicies and expanatory notes to these financia statements are an integra part of the financia statements Signed; 2 \. 05". 2<)1 " Date Pro ee Date 3 L

9 (.Nationa Urban Transport mprovement Project (NUTRP) Credit NO. DA ('Reports and Financia Statements For the financia period ended une 30, STATEMENT OF CASHFLOW FOR THE PEROD ENDED 30TH UNE 2014 RECEPT FROM OPERA TNG NCOME Transfer from Government Entities Proceeds from Domestic and Foreign Grants Misceaneous receipts Transfer from Government Entities 2014 Ksh 2013 Ksh PAYMENTS FOR OPERATNG EXPENSES (-) (-) NET CASH FLOW FROM OPERA TNG ACTVTES --) Cashfow from nvesting Activities Cashfow from Borrowing Activities. NET CASH FROM FNANCNG ACTVTES NET NCREASE N CASH AND CASH EQUVALENT Add CASH AND CASH EQUVALENT B/F CASH AND CASH EQUVALENT C/F The accounting poicies and expanatory notes to these financia statements are an integra part of the financia statements Signed; ~ A S- z..01!{" Date Date 4

10 Nationa Urban Transport mprovement Project (NUTRP) Credit NO. DA Reports and Financia Statements For the financia period ended une 30, 2014 ' '1 -, 7. STATEMENT OF COMPARSON OF BUDGET AND ACTUAL AMOUNT FOR THE PEROD ENDED 30TH UNE 2014,-~ t ' RECEPTS Note 2014 Budget 2014 Variance Actua GOK Counterpart funds DA Funds,.,.) TOT AL RECEPTS - PAYMENTS Project Expenditure: Staff training Bank charges TOTAL PAYMENTS SURPLUS FOR THE PEROD 3 i!. 5

11 Nationa Urban Transport mprovement Project (NUTRP) Credit NO. DA ( Reports and Financia Statements For the financia period ended une 30, 2014 ) 8. ST A TEMENT OF SPECAL (DESGNATED) ACCOUNT ACTVTY FOR THE PEROD ENDED 30TH UNE 2014 USD OPENNG BALANCE ST ULY , ,383, Cumm to date USD 650, Add Tota Amount deposited by Word bank ' Tota interest earned Tota amount refunded to cover ineigibe expenditure DA Direct payments Other Receipts Tota 650, ,383, , Deduct Tota Amount withdrawn Transferred to project account Bank Charges _ Tota CLOSNG BALANCE AS AT 30TH UNE , ,383, , The cumuative figures have been reconcied and agreed to the Banks Loan records as per cient connection. The information used to prepare this statement is obtained from the statement of specia Account Activity prepared by Treasury and Centra bank of Kenya (CBK) and attached as Annex 2 to the financia statements..) 6

12 Nationa Urban Transport mprovement Project (NUTRP) Credit NO. DA Reports and Financia Statements For the financia period ended une 30, STATEMENT OF SPECAL (DESGNATED) ACCOUNT RECONCLATON FOR THE PEROD ENDED 30TH UNE 2014 ACCOUNT RECONCLATON SATEMENT CDEDT NO. DA LOAN NO BANK ACCOUNT NO HELD WTH COMMERCAL BANK OF AFRCA NAROB. Amount advanced by the bank USD 650, ,383, Less 2. Tota Amount recovered by the bank 3. Outstanding amount advanced to specia account Represented by: 4. Ending specia account baance 30th une Amount caimed but not credited as at 30th une Amounts withdrawn and not caimed 7. service charge 8. nterest earned 9.Tota advance to specia account period ended 30th une , , ,383, ,383, Notes:.Amounts in specia account had not been transferred to project account due to budgetary and funds fow chaenges between The parent ministry -Mo T and Kenya Raiways. 7

13 // -"-, Natio11a/ Urba11 Tra11sport mproveme11t Project (NUTRP) Credit NO.!DA (- Reports a11d Fi11a11cia Stateme11ts For thejfoa11cia period emed u11e 30, NOTES TO THE FNANCAL STATEMENTS FOR THE PEROD ENDED 30TH UNE Financia reporting under the internationa Pubic sector Accounting Standards. The financia statements have been prepared in accordance with and compy with nternationa Pubic Sector Accounting Standards (PSAS) with particuar emphasis on Cash Basis Financia Reporting under the Cash Basis of Accounting. The financia statements compy with and conform to the form of presentation prescribed by the Accounting Standards Board of Kenya. The financia statements are presented in Kenya Shiings, which is the functiona and reporting currency of the Project and a vaues are rounded to the nearest one Shiing. The accounting poicies adopted have been consistenty appied to a of the years presented. The financia statements have been prepared on the cash basis foowing the Government's standard chart of accounts. The cash basis of accounting recognises transactions and events ony when cash is received or paid out by the Project. 2. Significant accounting poicies a) Basis of preparation The financia statements have been prepared in accordance with nternationa Pubic Sector Accounting standards with particuar emphasis on cash basis Financia reporting under the cash Basis of Accounting. b) Cash basis of Accounting.. The cash basis accounting recognizes transactions and events ony when cash(incuding cash equivaents) is received or paid by the entity. Cash equivaents are defined as short term, highy iquid investments that are readiy convertibe to known amounts of cash and which are subject to an insignificant risk of changes in vaue. a) Exchange rate differences j 3. Cash receipts and payments arising from transactions in a foreign currency are recorded in the financia statements using the exchange rate as per financing agreement. Cash baances hed in foreign currency are reported using the cosing rate. Any gains or osses on foreign currency transitions are deat with in the statement of specia account Activity Budget The budget is deveoped on the same accounting basis (cash basis), the same accounts cassification basis, and for the same period as the financia statements. There were budgetary issues and funds fow chaenges between the ine ministry and Kenya Raiways. 8

14 Nationa Urban Transport mprovement Project (NUTRP) Credit NO. DA Reports and Financia Statements For tie financia period ended une 30, Cash baances Project Account Baances Specia/Designated Account Baance ,383, ,383, * USD 650,000 Advance. 5. Government counterpart funds The project did not receive any Government counterpart funding during the period since the main project activities had not commenced as at 30th une Transfer from specia account There were no funds transferred from the Specia account during the period ended 30th une 2014.The funds were reeased by the Nationa Treasury to the Ministry of Transp01i and nfrastructure (MoT) on the 17th November The funds were thereafter reeased and credited by MoT to Kenya Raiways NUTRP project account on the 22nd December 2014.The amount credited was Ksh 58,378,509/-.Find annexed proof and bank statements. 7. Direct payments There were no direct payments made to any suppier during the period ended 30th une Ni Activity There was ni activity for the period ended 30th une 2014 as there were no funds received from the parent ministry of Transport and nfrastructure due to budgetary and funds fow chaenges between Kenya Raiways and the parent ministry. The first transfer for NUTRP was received on the 22nd December 2014 in the Kenya Raiways Project account. 9. Currency The financia statements are presented in Kenya Shiings () 9 '-