FINANCIAL REPORT Contents Table of contents............ 1 Statem ent by project steering com m ittee.. -........... 2 Independent audit report... 3-4 Statem ent of incom e and expenditure,...... 5 Notes to the financial report......... 6-7 1
STATEMENT BY PROJECT STEERING COMMITTEE We certfy that, to the best of our knowledge and belief: (a) the accompanying statement of income and expenditure of the project is drawn up so as to give a true and fair view of the results of the project funded by International Development Associatfon (IDA) for the year ended December 2016; (b) at the date of this statement there are reasonable grounds to believe that the grant was fully and solely expended on the project for which approval had been given by the University of the South Pacific as set out in the Grant Agreement dated 27 August 2014; Signed for and on behalf of the Committee. Dated this 2W' day of J4.ilM 2017. t s42.. W... Prof essor Rajesh Chandra Vice Chancellor & President Ko nlo Boila Executive Director Finance 2
Pacific House Tel: +679 331 4166 Level 7 Fax: +679 330 0612 E Y Butt Street Suva Fiji ey.com Building a better working world PO Box 1359 Suva Fiji INDEPENDENT AUDIT REPORT To members of Project Steering Committee of the University of the South Pacific Opinion We have audited the Financial Report of the Pacific Regional ICT Regulatory Development Project funded by the International Development Association ("IDA") which comprise of the Statement of Income and Expenditure for the year ended and notes to the financial report, including a summary of significant accounting policies. In our opinion, the accompanying Financial Report presents fairly, in accordance with accounting policies set out in Note 2, the income and expenditure of the Pacific Regional ICT Regulatory Development Project for the year ended 31 December 2016. Basis for Opinion We conducted our audit in accordance with International Standards on Auditing (ISA). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the University in accordance with the ethical requirements that are relevant to our audit of the financial statements in Fiji and we have fulfilled our other responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Basis for Accounting and Restriction on Distribution and Use Without modifying our opinion, we draw attention to Note 2 to the Financial Report, which describes the basis of accounting. The Financial Report is prepared to assist the University to comply with the financial reporting provisions of the project agreement. As a result, the Financial Report may not be suitable for another purpose. Our report is intended solely for the University and IDA and should not be distributed to or used by parties other than the University or IDA. Responsibilities of management for the Financial Report Management is responsible for the preparation of the Financial Report in accordance with the accounting policies set out in Note 2, and for such internal control as the management determine is necessary to enable the preparation of Financial Report that are free from material misstatement, whether due to fraud or error. In preparing the Financial Report, management is responsible for assessing the Project'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 liquidate the Project or to cease operations, or have no realistic alternative but to do so. Management is responsible for overseeing the Project's financial reporting process. 3 A member firm of Ernst & Young Glotal Lmted
EY Building a better working world Auditor's Responsibilities for the Audit of the Financial Report Our objectives are to obtain reasonable assurance about whether the Financial Report 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 ISA will always detect a material misstatement when it exists. Misstatements can arise from fraud and 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 Financial Report. As part of an audit in accordance with ISA, we exercise professional judgement and maintain professional skepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the Financial Report, 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 resulting 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 the Project's internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. - Conclude on the appropriateness of management's 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 the Project's ability to continue as a going concern. If we conclude that material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the Financial Report 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 the Project to cease to continue as a going concern. 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. Suva, Fiji 29th June 2017 Ernst & Young Chartered Accountants A member firn of Ernst & Young Global Limited 4
STATEMENT OF INCOME AND EXPENDITURE Income Notes 2016 Project To-Date (PTD) FJD FJD International development association - grant 842,685 1,382,685 Expenses Goods 3(a) 50,847 50,847 Operating expense 3 (b) 101,495 122,376 Consultants' service 3 (c) 506,086 774,306 Training costs 3 (d) 70,332 86,474 Non consulting services 3 (e) 4,578 7,741 Total expenditure 733,338 1,041,744 Balance of funds 109,347 340,942 Signed for and on behalf of the Committee. Professor Rajesh Chandra Vice Chancellor & President Kolinlo Bolla Executive Director Finance The accompanying notes form an integral part of this Statement of income and Expenditure. 5
NOTES TO THE FINANCIAL REPORT 1, GENERAL INFORMATION The project is a part of the International Development Association ("IDA") investment program aimed towards strengthening the capacity of ICT regulatory institutions in the participating countries and to enhance regional collaboration and knowledge sharing on ICT regulatory issues. The project was funded by International Development Association. This is a financial report which comprises of the grant income recorded for the project and expenditure incurred for the year 1 January 2016 to 31 December 2016. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Set out hereunder are the significant accounting policies adopted by the project in the preparation of the financial report of Pacific Regional ICT Regulatory Development Project for the year 1 January 2016 to 31 December 2016. a) Basis of preparation of the Financial Report The Financial Report has been prepared in accordance with the historical cost accounting and do not take into account chang:ng money values or current valuations of non current assets unless otherwise stated. b) Income Grant income is recorded upon receipt of income. c) Expenditure Expenses are recorded when paid in the year. The expenses recorded in this financial report comprise only those expenditure of the project funded by IDA during the year. 2016 Project To-Date (PTD) 3. EXPENSES FJD FJD a) Goods Computer charges - software purchase 8,525 8,525 System enhancement 1,016 1,016 Eauipment purchase 8,255 8,255 Service contracts 2,917 2,917 Computer equipment 11,946 11,946 Equipment 18,188 18.188 50.847 50,847 b) Operating expense Advertising 93,615 111,219 Computer parts and accessories 250 Stationery 845 3,768 Office expenses 25 25 Electrical maintenance - 104 OMS consumables 210 210 Publications 63800 6,800 101,495 122 376 6
NOTES TO THE FINANCIAL REPORT continued 2016 ProJect To-Date (PTD) 3. EXPENSES continued FJD FJD c) Consultants' service Freight and courier charges - 417 Consultancy fees expense 506,086 751,243 Immigration-permit - 1,528 Appointment allowance - 5,500 Travelling - overseas - 14,900 Legal fees - 719 506,086 774,306 d) Training costs Hospitality/expenses on meetings 12 1,262 Subsistence allowance 35,687 42,481 Travelling costs 34,133 42,231 Immigration permit 500 500 70,332 86,474 e) Non consulting services Legal fees - 3,163 Audit fees 4,578 4,578 4,578 7,741 7