Public Disclosure Authorized Public Disclosure Authorized 1. Management Verification ENHANCED ROAD ACCESS PROJECT IDA GRANT H884-WS and PRIF TF 017563 Project Financial Statements for the Financial Year ended 30 June 2016 2. FYI 5/16 Project Financial Statement Ending 30 June 2016 Public Disclosure Authorized Public Disclosure Authorized
IDA GRANT H884-WS and PRIF TF 017563 Project Accounts for the Financial Year Ended 30 June 2016 1, Lavea Tupaimatuna lulai Lavea, Chief Executive Officer, of the Ministry of Finance, Apia, Samoa verify that: - the accompanying Project Accounts for the year ended 30 June 2016, are to the best of my knowledge, a correct and accurate record of transactions for the said period. (Lavea paimatuna lulai Lavea) CHIEF XECUTIVE OFFICER Dated: 18"' May 2017
(ERAP) FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2016
FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016 CONTENTS Page 1. Report of the Auditor 1 2. Certification by Management 2 3. Statement of Cash Receipts and Payments 3 4. Statement of Comparison of Actual and Budget Amounts 4 5. Notes to the Financial Statements 5-7 6. Supplementary Schedule to Comparison of Actual and Budget Amounts 8
Telephone: 27751 P.0 Box 13 Fax: 24167 -APIA, SAMOA Email: Info@audit.gov.ws Website: www.audit.gov.ws Please address all correspondences to the Controller and Auditor General AuDIT OFFICE REPORT OF THE AUDIT OFFICE TO THE MINISTRY OF FINANCE OF THE GOVERNMENT OF SAMOA We have audited the accompanying financial report for the Enhanced Road Access Project categorized as IDA Grant No. H884 and PRIF Multi-Donor Trust Fund Grant No. TF 017563 for the financial year ended 30th June 2016, which comprises the Statement of Receipts and Payments, Statement of Comparison of Actual and Budget amounts, and a summary of significant accounting policies and other explanatory notes. Responsibility for the Financial Report The accompanying set of financial report is the responsibility of the management of the Implementing Agency - Land Transport Authority supported by the Executing Agency - Ministry of Finance. The policy of the National Executing Agency - Ministry of Finance, is to prepare the financial report in accordance with the requirements of the Donors - IDA and PRIF and on the cash disbursements basis. On this basis, grant funds are recognized when received and expenditure is recognized when paid rather than when incurred. The Implementing and Executing Agencies are also responsible for monitoring and ensuring all relevant project arrangements are in accordance with the terms and requirements agreed upon with the Donors, and ensure that all relevant program arrangements and activities are aligned with these terms and requirements. They are also responsible for any such internal control it determines as necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express an opinion on these financial reports based on our audit. We conducted our audit in accordance with International Standards on Auditing (ISA). Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial reports are free from material misstatements and that funds provided for the program were expended in accordance with the funding agreement by IDA and PRIF. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial reports. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement in the financial reports, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the preparation of the project financial reports 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 controls. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of judgments made by management, as well as evaluating the presentation of the financial reports. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial report present fairly, in all material respects, the Receipts and Payments of the Enhanced Road Access Project for the financial year ended 30th June 2016. We have obtained all the information and explanations that we required, to conclude that management has kept proper accounting records that support and validate the financial information disclosed in the financial report and the funds for the project have been used for purposes of the project in accordance with the requirements of the Financing Agreements. Apia, Samoa 18th May 2017 Fuimaonoapali ic."fele CONTROLLER AND AUDITOR GENERAL
CERTIFICATION BY PROJECT'S MANAGEMENT FOR THE YEAR ENDED 30 JUNE 2016 We certify that the attached financial statements for the Enhanced Road Access Project (ERAP) comprising of the Statement of Cash Receipts and Payments, Statement of Comparison of Actual and Budget and Notes forming part of the financial statements for the period from 01 July 2015 to 30 June 2016 (12 Months): a) gives a true and fair view of the matters to which they relate; and b) have been properly drawn up in accordance with the accounting policy described in Note 2 to the financial statements. We are not aware of any circumstances which would render any particulars included in the financial statements to be misleading or inaccurate. We authorise the attached financial statements for issue on... /.t on behalf of the Management of the Samoa Enhanced Road Access Project. S r Signature Lavea Tupa'imatuna lulai Lavea CHIEF EXECUTIVE OFFICER Ministry of Finance Apia, Samoa Leasi Vainalepa Galuvaa CHEEF EXECUTIVE OFFICER Land Transport Authority Apia, Samoa Page 2
Statement of Cash Receipts and Payments Enhancing Road Access Project For the year ended 30 June 2016 IDA H884-WS (Grant) and PRIF TF017563 (Grant) Currency $WST 2016 2015 Account Notes GaS Third Party Total GOS Third Party Total Receipts 2.6 IDA H884-WS / TF 017563 4 16,357,641-16,357,641 254,960-254,980 IDA H884-WS I TF 017563 - Direct Payments 542,395-542,395 - - GoS Prefinancing 5,7 452,876-452,876 578,178-578,178 Reimbursement GoS Prefinancing (578,178) - (578,178) - - Total Receipts 18,774,735 17,362,912 833,157-833,157 Payments 2.7 1.1.1 Vaitele ST Works 16,017,807-16,017,807 - - 1.1.2 East Coast Inland Rd Works Contract 177,121-177,121-1.2.1 Leone Bridge Works 1,164,932-1,164,932 - - 1.3.2 Supervision of Vaitele Extention 527,119-527,119 - - 1.3.4 Design and Supervision of Cross Island 382,726-382,726 -- 3.1 Project Manager Unit 486,397-486,397.21 814,452.30-814,452.30 Bank Charges 369-369 10-10 Total Payments 18,766,471-18,756,471 814,462-814,462 Increase(Decrease) In Cash (1,981,736) - 11,403,558) 18,695 18,696 Foreign Currency Gains and Losses Bank Revaluations 5,397-5,397 279,375-279,375 Total Foreign Currency Gains and Losses 5,397-5,397 279,376-279,375 Net Cash Movement (1,976,339) - (1,398,161) 298,070-298,070 Summary Opening Balance 2,564,103-2,564,103 2,266,032-2.266,032 Plus Net Cash Movement (1,976,339) - (1,976,339) 298,070-298,070 Closing Balance 2.5, 3 587,764-587,764 2.564,103-2,564,103
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NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2016 1. GENERAL INFORMATION The Government of Samoa (GoS) through the Implementing Agency - Land Transport Authority (LTA), has received a grant for assistance from the International Development Association (IDA) - World Bank, under the Enhanced Road Access Project (ERAP). The ERAP is a land transport infrastructure project with the development objective to restore key road sector assets damaged by extreme weather events and enhance the climate resilience of critical roads and bridges in Samoa. The Samoa ERAP Financing agreement for IDA H884-WS Grant was officially signed on the 1 st November 2013. The value of the Grant in SDR is 13,300,000.00 which equated to USD 20.5M at the time of signing. In addition to IDA Grant is a Grant of USD6.346m TFO 17563 from Pacific Region Infrastructure Facility (PRIF) multi donor trust fund, which is administered by IBRD/IDA and was signed on 8th October 2014. The closing date of the project is 30'h April 2019. ERAP is implemented under the overall guidance, coordination and monitoring of the Project Steering Committee. The Project Management Unit, IPA Ltd, helps to manage and implement ERAP and ensure that the World Bank's fiduciary, safeguards and reporting requirements are met. A Special Purpose Account or Designated Account (DA) for the ERAP was established and is governed by the Financing Agreement. The purpose of the ERAP DA is to disburse funds for Project activities. The ERAP uses four disbursement methods: (a) advances into the DA; (b) direct payment; (c) reimbursement of GoS pre-financed expenditure; and (d) special commitment. The ERAP is to be implemented in accordance with the principles, structures and responsibilities set out in the Financing Agreement. 2. SUMMARY OF ACCOUNTING POLICIES 2.1 Basis of Preparation They are prepared on the basis of historical Cash Basis IPSAS Financial Reporting Under The Cash Basis of Accounting. The accounting policies have been applied consistently throughout the period. 2.2 Reporting Entity The financial statements are separate fmancial statements for the ERAP project and do not form part of any Government Ministry or Government State Owned Financial Statements. 2.3 Definition of Categories of Payments Payments made under "GoS" are payments made by the GoS and The World Bank. Payments made by Third Parties' are payments made by Others. 2.4 Reporting Currency The financial statements are presented in Samoan Tala (WSTS). Transactions in currencies other than WST are translated into WST using the actual exchange rate applied by the CBS (where the transaction are paid from the DA) or at the applicable rate ( where the transactions are paid by Third parties) 2.5 CASH BALANCES Cash balances is represented by the CBS DA for the Project. Page 5
NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2016 2.6 Receipts Grants are received from the World Bank for IDA H884 and TF 013579. The amount is based on a request from the GoS through the MOF for approval and transfer from the World Bank. Receipts also comprise payments made directly by the World Bank to the vendors for the Project, and prefinanced expenditures the GoS to vendors before receipt of reimbursement from The World Bank. 2.7 Payments Payments relate to all expenditure payments made to suppliers for goods and services relating to the Project. Payments are certified and approved by the CEO-LTA and CEO - MoF for projects activities implemented by respective agencies,and are subsequently paid by the MoF in accordance with the Program Operational Manual (POM). Payments are made in line with the Financing Agreement between the Independent State of Samoa and the IDA- World Bank. Any variation to the Project Agreement would be submitted by LTA to MOF for consideration. 30 JUNE 30 JUNE 3 CASH AT BANK 2016 2015 5 5 USD Account No. 06-080: Balance at year end - USD 230,780 1,000,000 Balance at year end - WST CBS 0.39264USD/WST) 587,764 2,564,103 587,764 2,564,103 4 RECEIPTS - IDA H884-WSff F 017563 CBS DA 06-080 16,357,641 254,980 Direct Payments 542,395 - Total* 16,900,036 254,980 *Exclude GoS pre financed amounts. 5 RECEIPTS - GoS Pretfinanced Eligible project expenditures prefinanced by the GoS and reimbursed from the IDA H884 Grant and PRIF TF 017563 Grant 452,876 578,178 Total 452,876 578,178 Page 6
NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2016 6 FACILITY AVAILABLE Grant in historical figures including undisbursed balances at the end of the year. Remaining Signed Amount Signed Amount Disbursed Balance IDA H884-WS SDR 13,300,000 USD 20,000,000 USD 7,557,999 USD 12,442,001 TF 017563 USD 6,346,000 USD 0 USD 6,346,000 7 SUBSEQUENT EVENTS GoS - Pre Financing amount of $452,876.31 to be reimbursed from IDA H884-WS and and TF 017563 Grant in FY1617 Page 7
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