Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized GOVERNOR'S OFFICE TEL: (265) 1 770 600/771 600 FAX: (265) 1 772 752/7,74 289 WEBSITE: http://www.rbm.mw EMAIL: reserve-bank@rbm.mw 31 st May 2018 Mr Greg Toulmin Country Manager World Bank, Malawi Office PO Box 30557 LILONGWE3 Dear Mr Toulmin '"" HEAD OFFICE CONVENTION DRIVE PO BOX30063 CAPITAL CITY LILONGWE 3 MALAWI \VORL12J?~K RECElVED 20J -06-0~ MALA WI COUNTRY OFFICE ID P122616 AUDIT REPORT FOR THE YEAR ENDED DECEMBER 31, 2017 I am pleased to submit the audit report comprising the audited financial statements and management letter for the Financial Sector Technical Assistance Project (FSTAP) for the year ended 31 st December 2017, for your review and records. Project accounts were audited by Deloitte who have prepared the enclosed audit report. Let me take this opportunity to thank the World Bank for the continued support to the Malawi Government and Reserve Bank of Malawi. Yours sincerely Dalitso Kabambe (PHD) GOVERNOR
Deloitte. RESE1l'YE BANK OF MALA WI ' WORLD BANK (INTERNATIONAL DEVELOPM ENT ASSOClATIO ) CREDIT NUMBER: 48970 MW PROJECT NUMBER: Pl22616 REPORT OF THE INDEPENDENT AUDITOR ON THE PROJECT'S FINANCIAL ST A TEMENTS
. TABLE OF CONTENTS CONTENTS 1. General Information 1.1 1.2 Background Audit Objectives and Scope 1-3 4 2. Independent Auditor's Report on Project Financial Statements 5-7 3. Independent Auditor's Report on the Designated Account Statement 8-10 4. Statement of Sources and Uses of Funds 11 5. Designated Account Activity Statement 12 6. Accounting policies 13 7. Notes to the Project Financial Statements 14-15
1. GENERAL INFORMATION 1.1 Background The Malawi Government received funding from the International Development Association (IDA) of the World Bank to be applied towards increasing access to finance for the currently unbanked, but b~able, pt1pulation of Malawi through the Financial Sector Technical Assistance Project (FSTAP). The Reserve Bank of Malawi (RBM) is implementing the Financial Sector Technical Assistance Project (FSTAP). The project is financed by a credit of USD28.2 million, with the commencement date of December 21, 2011 and was expected to close by August 2016. However, in order to accommodate finalisation of some activities, the closing date was extended to 29 June, 2018. The Malawi Government made available the entire USD28.2 million to the Reserve Bank of Malawi on a grant basis through a supplementary agreement that transfers implementation responsibility to the RBM. However, earlier in 2011, there was a need to have some preparatory activities undertaken before the FSTAP Project Implementation Unit (PIU) could be fully functional and it was in view of this need that BEST AP (another World Bank funded project under the Ministry of Trade and Industry) was identified to implement the project preparatory activities from July 2011 to December 2011. After the completion of project preparation, the implementing entity (Reserve Bank of Malawi) took over the project and started implementing it through a Pill from January 2012. The project provides the necessary financing for change management in key public sector institutions; primarily the Ministry of Finance and the Reserve Bank of Malawi that already have an established source of recurrent funding. The activities have been identified through extensive economic sector work, policy dialogue with the Government, as well as through consultations with a wide range Qf stakeholders (including the private sector, civil society and donors) to achieve wider access to financial products thereby contributing to economic growth. During the year, the project received a total of USD2.42 million (2016: USDS.1 2 million) towards the implementation of project's activities. The IDA credit for project implementation supports five components and funds the following main activities: (i) training and workshops, (ii) short term consultancy services and (iii) goods, predominantly project vehicles and IT hardware and software systems. Activities supported by the project are aggregated in the following five components: 1. Strengthening financial sector regulation and supervision. 2. Financial infrastructure. 3. Financial consumer protection and financial literacy. 4. Ministry of Finance financial sector policy and governance capacity and long term finance. 5. Project implementation support.
FINANCIAL SECTOR TECHNICAL ASSIST CE PROJECT (FSTAP) 1. GENERAL INFORMATION (Continued) 1.1 Background (Continued) Project Financing Table Project Compo~ent - Project cost IDA (in US$m) Financing (in US$m) Strengthening financial sector regulation and supervision 5.32 5.32 Financial infrastructure 13.22 13.22 F inancial consumer protection and financial literacy 3.02 3.02 Ministry of F inance financial sector po licy and governance capacity and long 3.39 3.3 9 term finance Project implementation support 3.26 3.26 Total 28.21 28.21 Financing percentage 100 100 100 100 100 100 2
1. GENERAL INFORMATION (Continued) 1.1 Background (Continued) FSTAP Project As noted above; t~e project ~ -expected to run fo r a period of more than six years fro m 21 December 2011 to 29 June 2018 and the budget fo r the proj ect is as tabulated below: Total Budget US$ 2011-2017 1. Financial Sector, Regulation and Supervision Goods 2 800 000 Consultancy Services on legal and regulatory fram ework 1 670 000 Training and Workshops 845 000 5 315 000 2. Financial Infrastructure Goods 8 590 000 Consultancy Services 4 348 000 Training and Workshops 280 000 13 218 000-3. Financial Consumer Protection and Financial L iteracy Consultancy Services 1 392 000 Training and Workshops 1 632 000 3 024 000 4. MOF Financial Sector Policy and Governance Capacity and Long -Term Finance Goods 405 000 Consultancy services 1 553 000 T raining and Workshops 1 133 25 0 3 091 250 5. FSTAP Implementation Support & Capacity Building Goods 300 000 Consultancy services 2 511 000 Training and workshops 264 000 Operating Costs 491 000 3 566 000 Total Budget 28 214 250 3
1. GENERAL INFORMATION (Continued) 1.2 Audit Objectives and Scope Objectives The objective of the audit of t1ie Project Financial Statements (PFS) is to enable the auditor to express a professional opinion on the financial position of the project at the end of each fiscal year, and on funds received and expenditures for the relevant accounting period as reported by the PFS, as well as an opinion on the eligibility of claims made through Statement of Expenditures, and on the Statements of Designated Account. The project books of accounts provide the basis for the preparation of the Project Financial tatements (PFS) and are prepared to reflect the financial transactions in respect of the project, as maintained by the Financial Sector Technical Assistance Project (FST AP). Scope of services We conducted our aud it in accordance with International Standards on Auditing, and included such tests and procedures, as we considered necessary under the circumstances. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the amounts included in the statements of expenditure were used for the intended purpose. We believe that our audit provides a reasonable basis for our opinion. 1n order to satisfy this requirement, we report specifically on the following:- Whether all World Bank funds have been used in accordance with the conditions of the relevant financing agreement, with due attention to economy and efficiency, and only for the purposes for which the financing was provided; Whether goods and services financed have been procured in accordance with the relevant financing agreement and in accordance with the Bank's Guidelines; Whether all necessary supporting documentation, records and accounts have been kept in respect of all project activities, with clear linkages between the books of accounts and reports presented to the World Bank; Whether the Designated Account has been maintained in accordance with the provisions of the relevant financing agreement; and Whether the project financial statements have been prepared in accordance with the International Financial Reporting Standards as pronounced by the International Accounting Standards Board (IASB) and as adopted by the Institute of Chartered Accountants in Malawi (ICAM), that they give a true and fair view of the financial position of the project at the relevant date and of receipts and expenditures for the year ended on that date. 4
Deloitte. P0Box30364 Capital City Lilongwe 3 Malawi Deloitte Chartered Accountants Registered Auditors Deloitte House Next to National [ibrary Service Lilongwe 3 Malawi Tel :+265 (0) 1 773 699 :+265 (0) 1 773 069 Fax :+265 (0) 1 772 276 Email :lldeloitte@deloitte.co.mw www.deloitte.com WORLD BANK (INTERNATIONAL DEVELOPMENT ASSOCIATION)...,CREDIT NUMBER: 48970-MW PROJECT NUMBER: P122616 INDEPENDENT AUDITOR'S REPOR ON THE PROJECT FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER2017 Opinion We have audited the accompanying Project Financial Statements of the Financial Sector Technical Assistance Project (FSTAP), World Bank (IDA) Credit Number: 48970-MW, Project Number P122616, for the year ended 31 December 2017, as set out on pages 11 to 15 which include: (a) (b) (c) Statement of Sources and Uses of Funds; A summary of the principal accounting pol.icies that have been adopted; and Appropriate notes to the project financial statements (includes a summary of funds received from the World Bank). In our opinion, the project financial statements give a true and fair view of the financial position of the Financial Sector Technical Assistance Project (FSTAP) - World Bank (IDA) Credit/ Number: 48970-MW, Project Number P122616, and of its performance for the year ended 31 December 2017, in accordance with Generally Accepted Accounting Principles (GAAP) and the basis of accounting detailed under accounting policy l. 1 on page 13 of these Project Financial Statements and: 1. All World Bank funds have been used in accordance with the conditions of the relevant financing agreement, with due attention to economy and efficiency, and only for the purposes for which the financing was provided; 2. Goods and services financed have been procured in accordance with the relevant financing agreement and in accordance with the World Bank's Guidelines; 3. All necessary supporting documentation, records and accounts have been kept in respect of all project activities, with clear linkages between the books of accounts and reports presented to the World Bank; 4. Designated Account has been maintained in accordance with the provisions of the relevant financing agreement; and 5. Interim Financial Reports can be relied upon as a basis for processing withdrawal applications. Partners: NT Uka VW Beza CA Kapenda MC Mwenelupembe (Mrs) Associate of Deloitte Africa, a Member of Deloitte Touche Tohmatsu Limited 5
Basis for Opinion We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditor' s Responsibilities for the Audit of the Project Financial Statements section of our report. We are independent of FST AP in accordance with the International Ethics Standards Board for Accountants' Code of Ethics for Professional Accountants (IESBA Code) together with the ethical requirements that are relevant to our audit of Project Financial Statements in Malawi. We have fulfilled our ethical responsibilities in accordance with these requirements and the IESBA code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Responsibilities offstap Management for the Project Financi~I Statements Financial Sector Technical Assistance Project (FSTAP) management are responsible for the preparation of the Project Financial Statements that give a true and fair view in accordance with Generally Accepted Accounting Principles and the basis of accounting detailed under accounting policy 1.1 on page 13 of these Project Financial Statements and for such internal control as management determine is necessary to enable preparation of the Project Financial Statements that are free from material misstatement whether due to fraud or error. In preparing the Project Financial Statements, management are responsible for assessing FST AP's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intend to cease operations, or have no realistic alternative but to do so. Auditor's Responsibilities for the Audit of the Project Financial Statements Our objectives are to obtain reasonable assurance about whether the Project Financial Statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the Project Financial Statements. As part of an audit in accordance with ISAs, we exercise professional judgement and maintain professional scepticism throughout the audit. We also: Identify and assess the risks of material misstatement of the Project Financial Statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is suffic ient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional om1ss1ons, misrepresentations, or the override of internal control. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness offstap's internal control. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the management. 6
Auditor's Responsibilities for the Audit of the Project Financial Statements (Continued) Conclude on the appropriateness of management' use of the going concern basis of accounting and based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on FSTAP's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the Project Financial Statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause FSTAP to cease to continue as a going concern. Evaluate the overall presentation, structure and content of the Project Financial Statements, including the disclosures, and whether the Project]inancial Statements represents the underlying transactions and events in a manner that achieves fair presentation. We communicate with management regarding, among other matters, -the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Deloitte Chartered Accountants Christopher Kapenda Partner 29 May 2018 7
Deloitte. PO Box 30364 Capital City Lilongwe 3 Malawi Deloitte Chartered Accountants Registered Auditors Deloitte House Next to National tibrary Service Lilongwe 3 Malawi Tel :+265 (0) 1 773 699 :+265 (0) 1 773 069 Fax :+265 (0) 1 772 276 Email :lldeloitte@deloitte.co.mw www.deloitte.com WORLD BANK (INTERNATIONAL DEVELOPMENT ASSOCIATION) CREDIT NUMBER: 48970-MW PROJECT NUMBER: Pl22616 INDEPENDENT AUDITOR'S REPORT ON THE DESIGNATED ACCOUNT ACTIVITY STATEMENT Opinion We have audited the accompanying Designated Account Activity Statement of Financial Sector Technical Assistance Project (FSTAP), World Bank (IDA) Credit Number: 48970-MW, Project Number P122616, for the year ended 31 December 2017 as set out on page 12. In our opinion, the Designated Account Activity Statement gives a true and fair view of the financial position of Financial Sector Technical Assistance Project (FSTAP), World Bank (IDA) Credit Number: 48970-MW, Project Number P122616, for the year ended 31 December 2017, in accordance with Generally Accepted Accounting Principles (GAAP) and the basis of accounting detailed under accounting policy 1.1 on page 13 of these Project Financial Statements and: 1. All World Bank funds have been used in accordance with the conditions of the relevant financing agreement, with due attention to economy and efficiency, and only for the purposes for which the financing was provided; 2. Goods and services financed have been procured in accordance with the relevant financing agreement and in accordance with the Bank's Guidelines; 3. All necessary supporting documentation, records and accounts have been kept in respect of all project activities, with clear linkages between the books of accounts and reports presented to the World Bank; 4. Designated Account Activity Statement has been maintained in accordance with the provisions of the relevant financing agreement; and 5 The Designated Account Activity Statement has been prepared in accordance with Generally Accepted Accounting Principles (GAAP) and that they give a true and fair view of the financial position of the project at the relevant date and of receipts and expenditures for the period ended on that date. Basis for Opinion We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the audit of the Designated Account Activity Statement section of our report.. We are independent of FSTAP in accordance with the International Ethics Standards Board for Accountants' Code of Ethics for Professional Accountants (IESBA Code) together with the ethical requirements that are relevant to our audit of financial statements in Malawi. We have fulfilled our ethical responsibilities in accordance with these requirements and the IESBA code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our optmon. Partners: NT Uka VW Beza CA Kapenda MC Mwenelupembe (Mrs) 8 Associate of Deloitte Africa, a Member of Deloitte Touche Tohmatsu Limited
Responsibilities of the FSTAP management or the Designated Account Statement Financial Sector Technical Assistance Project (FSTAP) management are responsible for the preparation of the Designated Account Activity Statement that gives a true and fair view in accordance with Generally Accepted Accounting Principles and the basis of accounting detailed under accounting policy 1. l on page 13 of these Project Financial Statements and for such internal control as management determine is necessary to enable preparation of Designated Account Statement that is free from material misstatement whether due to fraud or error. In preparing the Designated Account Statement, management are responsible for assessing FST AP ' s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intend to cease operations, or have no realistic alternative but to do so. Auditor's Responsibilities for the Audit of the Designated Account Activity Statement Our objectives are to obtain reasonable assurance about whether the Designated Account Activity Statement as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor' s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the Designated Account Activity Statement. As part of an audit in accordance with ISAs, we exercise professional judgement and maintain professional scepticism throughout the audit. We also: Identify and assess the risks of material misstatement of the Designated Account Activity Statement, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resu lting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Obtain an understanding of internal control relevant to the audit 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 FST AP's internal control. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the management. Conclude on the appropriateness of management' use of the going concern basis of accounting and based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on FST AP's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the Designated Account Activity Statement or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause FSTAP to cease to continue as a going concern. Evaluate the overall presentation, structure and content of the Designated Account Activity Statement, including the disclosures, and whether the Designated Account Activity Statement represents the underlying transactions and events in a manner that achieves fair presentation. 9
STATEMENT OF SOURCES AND USES OF FUNDS Opening Cash Balances FSTAP Project Operating Accounts,.:,. 182 373 FST AP Designated Account 3 989 209 Add: Receipts ( r \ ( 2017 2017 Period Cumulative US$ USS 4171 582 ' IDA Funds 2 420 000 25 094 716 Interest received 153 153 Cash Available 6 591 735 25 094 869 2016 2016 Period Cumulative USS US$ 185 882 1 823 933 2 009 815 5 120 000 22 674 716-7129 815 22 674 716 Less: Uses of Funds by Project Component/Sub Component 1. Financial Sector Regulation and Supervision 546 745 4 813 946 2. Financial Infrastructure 1 327 648 8 491 091 3. Financial Consumer Protection and Financial Literacy 469 509 2 394 847 4. Ministry OfFinance (MOF) Financial Sector Policy and Governance Capacity and Long - Term Finance 201 286 2 941 752 5. Capacity Building and Implementation Support 313 447 2 720 133 Total Expenditures 2 858 635 21 361 769 653 546 4 267 201 932 714 7 163 443 437 877 1 925 338 580 153 2 740 466 353 943 2 406 686 2 958 233 18 503 134 Cash available less expenditure 3 733 100 3 733100 Closing Cash Balance FSTAP Project Operating Accounts 242 503 242 503 FST AP Designated Account 3 490 597 3 490 597 Total Closine: Cash Balance 3 733100 3 733100 4 171 582 4171 582 182 373 182 373 3 989 209 3 989 209 4171 582 4 171 582 A9J Statement of Sources and Uses of Funds was approved and authorised for issue by the Project Management on V..~/May 2018 and was signed on its behalf by: Signed By: Mr Joseph Milner:-~,._~--~...,...,~,...--'+~'----' ~ '-- FSTAP Project Manager Mr Victor Mphande: --~ c cb FSTAP Financial Management Specialist 11
WORLD BANK (IDA) CREDIT NO: 48970-MW; PROJECT NUMBER: Pl22616 DESIGNATED ACCOUNT (DA) ACTIVITY STATEMENT 2017 Deposit Bank: Reserve Bank of Malawi Account Number: Account Name: FSTAP Designated Account 001-000034-USD - Currency of DA: United States Dollars 2036-01 PART I - US Dollars 1 Cumulative advances to end of current reporting period ' 25 094 716 2 Cumulative expenditure to end of last reporting period (18 503 134) 2016 Account Number: 001-000034-USD - 2036-01 US Dollars 22 674 716 (15 544 901) Interest received 153 Outstanding advance to be accounted (line 1 minus line 2 plus 3 interest received) 6 591 735 PARTil Opening Statement of Account (SA) balance at beginning of 4 reporting period (as of January 01, 2017) 4 171 582 5 Add: Cumulative adjustments (if any) 153 6 Advances from World Bank during reporting period 2 420 000 7 Add lines 5 and 6 2 420 000 8 Outstanding advances to be accounted for (add line 4 and line 7) 6 591 735 9 Total Closing Cash Balance at the end of the reporting period 3 733100 10 Add/subtract: Cumulative adjustments (if any) - 11 Expenditures for current reporting period 2 858 635 12 Add lines 10 and 11 2 858 635 13 Add lines 9 and 12 6 591 735 14 Difference (if any) (line 8 minus line 13) - - 7129 815 2 009 815-5 120 000 5 120 000 7129 815 4171582-2 958 233 2 958 233 7 129 815 - T~e Designated Account Activity statement was approved and authorised for issue by the Project Management on iimay 2018 and was signed on its behalf by: Signed By: FSTAP Project Manager Mr Victor Mphande: --~ c_ ~ d::) FSTAP Financial Management Specialist 12
ACCOUNTING POLICIES 1.1 Basis of accounting The Project Financial Statements and the Designated Account Activity Statement have been prepared on the bas'is of cash accounting where income is recognised when received rather than when earned and expenses are recognised when paid rather than when incurred. 1.2 Receipts Included in the receipts are initial deposits into the Designated Account on the basis of the withdrawal applications submitted during the period and all disbursements made directly by the IDA to those suppliers that have either rendered services or have supplied goods to the project. 1.3 Expenditures These represent all expenditure actually incurred through the Designated Account, through the local account in the period under review and all disbursements made directly by the IDA to those suppliers that have either rendered services or have supplied goods to the project. 1.4 Foreign currency translations The opening and closing bank balances for the project are translated to US$ at the conversion rate used when transferring funds from the designated US$ account to local currency on a first in first out basis. Expenditures are also translated to the US$ at the conversion rate of funds transferred from the designated US$ account on a first in first out basis. The transactions and financial position of the project are expressed in United States Dollars. Contributions are received in United States Dollars. Transfers are then made from the United States Dollars Designated Account into local accounts held at the Reserve Bank of Malawi. No exchange gain/ loss is made on the funds. 1.5 Capital expenditure items Fixed assets investments and other capital items are recorded at cost (treated as operating expenditures) and classified under the respective projects that have made the capital expenditure. An asset register is maintained that provides information on the value, location and identity of all assets acquired. No depreciation or amortization is recognised. 13
~SERVE.BANK OF MALA WI NOTES TO THE PROJECT FINANCIAL STATEMENTS 1. WITHDRAWAL APPLICATIONS (FSTAP FUNDS)- PROCESSED BY IDA-AS AT 31 DECEMBER 2017 IDA CREDIT NUMBER 48970-MW PROJECT NUMBER: P122616 Application Receipt World Bank Withdrawal Transactions Beneficiary Amount Amount Paid Account Application Number Borrower Reference Name Details Applied USD USD Value Date Voucher NO. 0001 FSTAP PPF 02 FSTAP PPF Withdrawal Application 150 000.00 150,000.00 22/12/2011 SPAC 002 0002 FSTAP PPF 03 FSTAP PPF Withdrawal Application 39 893.63 39,893.63 22/12/2011 SPAC 003 0003 FSTAP PPF 03 FSTAP PPF Withdrawal Application 652.53 652.53 22/12/2011 SI?AC 004,, 0004 FST AP SP AC 04 FSTAP Direct Payment 53 551.55 53,551.55 17/02/2012 SPAC 004 0005 FST AP SP AC 05 FSTAP Withdrawal Application 1387198.22 1,3 87,198.22 07/03 /2012 SPAC 005 0008 FST AP SP AC 0008 FSTAP Withdrawal Application 4 244 049.75 4,244,049.75 19/03/2013 SPAC 0008 0011 FSTAP SPAC 0011 FSTAP Withdrawal Application 959 370.00 959,370.00 08/08/2013 SPAC 0011 0012 FSTAP SPAC 0012 FSTAP Withdrawal Application I 940 000.00 1,940,000.00 l 7/01 /2014 SPAC 0012 0013 FSTAP SPAC 0013 FSTAP Withdrawal Application 2 450 000.00 2,450,000.00 18/03/2014 SPAC 0013 0014 FSTAP SPAC 0014 FSTAP Withdrawal Application 1 890 000.00 1,890,000.00 15/07/2014 SPAC 0014 0015 FSTAP SPAC 0015 FSTAP Withdrawal Application 860 000.00 860,000.00 17/09/2Dl4 SPAC 0015 0017 FSTAP SPAC 0015 FSTAP Withdrawal Application 2 180 000.00 2 180 000.00 06/03/2016 SPAC 0017 0018 FSTAP SPAC 0015 FSTAP Withdrawal Application 1 400 000.00 1 400 000.00 16/07/2015 SPAC 0018 0019 FSTAP SPAC 0019 FSTAP Withdraw Aoolication 820 000.00 820 000.00 14/03/2016 SPAC 0019 0021 FST AP SP AC 002 I FSTAP Withdraw Application 826 000.00 826 000.00 18/05/2016 SPAC 0021 0023 FSTAP SPAC 0023 FSTAP Withdraw Application I 624 000.00 l 624 000.00 06/ 12/2016 SPAC 0023 0024 FSTAP SPAC 0024 FSTAP Withdraw Aoolication 1 850 000.00 1 850 000.00 23/12/2016 SPAC 0024 0025 FST AP SPAC 0025 FSTAP Withdraw Aoolication l 420 000.00 1 420 000.00 29/03/2017 SPAC 0025 0026 FST AP SP AC 0026 FSTAP Withdraw Application 1 000 000.00 1 000 000.00 19/07/2017 SPAC 0026 Total Withdrawn 25 094 715.68 25 094 715.68 TOTAL BALANCE 14 IDA CREDIT USD 28 214 250.00 3 119 534.32
NOTES TO THE PROJECT FINANCIAL STATEMENTS (Continued) 2. Economic factors The average of the year-end buying and selling rates of the foreign currencies most affecting the performance of the proj ect are stated.-below, together with the increase in the National Consumer Price Index, which represents an official measure of inflation. Kwacha/US Dollar Middle rate K wacha/us Dollar - 3 1 December 20 17 Infl ation rate (%) - 31 December 2017 725.65 7.10 As at 22 May 2018 the exchange and inflation rates had moved as fo llows: Kwacha/US Dollar Inflation rate (%) - April 20 18 725.65 9.70 o adjustments arising from the movement in exchange rates and inflation rates after year end have been made in the fi nancial statements. 15