FINANCIAL STATEMENTS FOR THE 12 MONTHS ENDED 30TH JUNE 2023 Tmif WORID 804 Funded by: International Development Association (IDA) Grant No. D5430-TO Implementing Agency: Tonga Statistics Department CONTENT Page 1. Statement of Management Responsibility 2 2. Independent Auditor's Report 3-4 3. Statement of Receipts and Payments 5 4. Statement of Comparison of Budget and Actual Amounts. 6 5. Notes to the Financial Statements 7 1 STATISTICAL INNOVATION & CAPACITY BUILDING IN TONGA PROJECT (SICBTP) Statement of Management Responsibility In the opinion of the Implementing Agency for the Statistical Innovation and Capacity Building in Tonga Project (SICBTP), the accompanying statement of receipts and payments and the accompany statement of comparison of budget and actual amounts for the year ended 30th June 2023 gives a true and fair view of the matters to which they relate, cash flow and fund position of the Statistical Innovation and Capacity Building in Tongan Project (SICBTP) for the year ended. They have also been properly drawn up in accordance with accounting policy described in Note 2 of the Financial Statement. 19th December 2023 Sione Lolohea 'Va LS akai Government Statistician Project Coordinator Tonga Statistics Department SICBTP 2 & FRI\XP-IRPrN(1 INDEPENDENT AUDITOR GENERAL'S REPORT To the Government Statistician Tonga Statistics Department Statistical Innovation Capacity Building in Tonga (SICBT) We have audited the accompanying financial statements of the Statistical Innovation Capacity Building in Tonga Project ("the project") for the financial year ended 30' June 2023, comprising the Consolidated Statement of Receipts and Payments, Statement of Budget and Actual Expenditure, and the Notes summarizing the significant accounting policies and information to the financial statements. Management's Responsibility for the Financial Statements According to the Public Finance Management Act 2002 and the project's agreement dated 20' March 2020, management is responsible for the preparation and presentation of the financial statements in accordance with the International Public Sector Accounting Standards (IPSAS). This responsibility includes the design, implementation, and maintenance of internal control relevant to preparing and presenting financial statements that are free from material misstatement, whether due to fraud or error. In addition to the responsibility for preparing and presenting the financial statements described above, management is also responsible for ensuring that activities, financial transactions, and information reflected in the financial statements comply with the authorities which govern them. Auditor General s Responsibility Our responsibility is to express an opinion on the financial statements based on our audit. We conducted the audit in accordance with the International Standards of Supreme Audit Institutions (ISSAIs). Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. In addition to expressing an opinion on the financial statements, our responsibility includes expressing an opinion on whether the activities, financial transactions, and information reflected in the financial statements are, in all material respects, in compliance with the project's agreement. This responsibility includes performing procedures to obtain audit evidence about whether the project's expenditures have complied with the purposes intended by the project's agreement. Such procedures include the assessment of the risks of material non-compliance. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinions. Opinion In our opinion, (i) the aforementioned financial statements of the Statistical Innovation Capacity Building in Tonga Project for the financial year ended 30 June 2023 are presented fairly, in all material respects, in accordance with the International Public Sector Accounting Standards, IPSAS under the Cash Basis of Accounting; and (ii) the funds of the project allocated for the financial period then ended have been utilized only for the purposes of the project and no fhnd being utilized for other purposes. Opinion on Compliance In our opinion, the activities, financial transactions, and information reflected in the financial statements are, in all material respects, in compliance with the authorities governing them. Sefita Tangi FCPA 1 AUDITOR GENERA Date: 20' December, 2023 STATISTICAL INNOVATION & CAPACITY BUILDING IN TONGA PROJECT (SICBTP) STATEMENT OF RECEIPTS AND PAYMENTS FOR THE 12 MONTHS ENDING 30 JUNE 2023 30 Jun 2023 30 Jun 2022 Receipts/(Payments) Receipts/(Payments) Expressed in Tongan Pa'anga Controlled by the Controlled by the Notes Entity Entity $ $ RECEIPTS 2.3 IDA Grant No. DS430-T0 $499,19096 $320,302.68 Total Receipts $499,190.9 $320,302.68 PAYMENTS 2.4 Component 1 1.1 2020/21 Household Income & Expenditure Survey-RA(20-21) $159,693.64 $209,141.02 1.2 2024/25 Household Income & Expenditure Survey-RA(24-25) $0.00 $0.00 1.3 Data collection for economic statistics $59,777.39 $0.00 1.4 Data collection to improve early warning systems for natural disasters $0.00 $0.00 Component 2 2.1 Analytial Training $0.00 $0.00 2.2 Data and research dissemination $0.00 $0.00 23 ICT a nd offce f urn ish ing improvements $0.00 $26,253.00 Component 3 3.1 Project coordinator $89,622.49 $85,922.68 3.1.1 Accounting Officer $14,68638 $0.00 3.2 Incremental operating costs $34,630.71 $4,115.87 Total Payments $358,410.61 $325,438.57 Net Receipts/(Deficits) $140,78035 -5,13589 Changes in Cash Balances Cash at Bank on hand - 1IJuly 2022 $73,285.38 $92,221.16 Cash at Bank on hand - 30 June 2023 $216,946.87 $73,285 .38 Net Increase/(Decrease) in Cash $214,065.73 $87,085$07 Balance Check $140,78035 -$5,135.89 STATISTICAL INNOVATION & CAPACITY BUILDING IN TONGA PROJECT (SICBTP) STATEMENT OF COMPARISON OF BUDGET AND ACTUAL AMOUNTS FOR THE 12 MONTHS ENDING 30 JUNE 2023 Expressed in Tongan Pa'anga Yearto Date Project to Date Original Budget Variance (Original and Actual Budget) CASH INFLOWS IDA Grant No. 05430-TO $499,190.96 $1,489,882.11 $4,614,994.12 $3,125,112.01 Total Cash In flows $499,190.96 $1,489,882.11 $4,614,994.12 $3,125,112.01 CASH OUTFLOWS Component 1 1.1 2020/21 Household Income & Expenditure Survey $159,693.64 $762,116.69 $1,373,723.15 $611,606.46 1.2 2024/25 Household Income & Expenditure Survey $0.00 $0.00 $1,269,123.38 $1,269,123.38 1.3 Data collection for economic statistics $59,777.39 $59,777.39 $369,199.53 $309,422.14 1.4 Data collection to improve early warning systems for natural disasters $0.00 $69,498.40 $115,374.85 $45,876.45 Component 2 2.1 Analytical Training $0.00 $0.00 $230,749.71 $230,749.71 2.2 Data and research dissemination $0.00 $0.00 $230,749.71 $230,749.71 2.3 ICT and office furnishing improvements $0.00 $140,545.84 $309,204.61 $168,658.77 Component 3 3.1 Project coordinator $89,622.49 $175,550.77 $553,799.29 $378,248.52 3.1.1 Accounting Officer $14,686.38 $14,686.38 $80,000.00 $65,31162 3.2 Incremental operating costs $34,630.71 $39,840.62 $83,069.89 $43,229.27 Total Cash Outf lows $358,410.51 $1,262,016.09 $4,614,994.12 $3,352,978.03 Net Cash Flows $140,780.35 $227,8660 $0.00 -$227,86602 STATISTICAL INNOVATION & CAPACITY BUILDING IN TONGA PROJECT (SICBTP) NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2023 1. GENERAL INFORMATION The Government of Tonga through the Implementation Agency - Tonga Statistics Departmnet has received a grant from the international Development Association under the Statistical Innovation and Capacity Building in Tonga Project (SICBTP). The SICBTP project development objective is to improve the quality and efficiency of welfare data collection and accessability to comparable welfare data in Tonga. The SICBTP Project Financing Aggrement was declared effective on 07th May 2020. The value of the total IDA0riginal Grant in USD is $2 million (equilavent of TOP $4.6 million). The SICBTP Project is implemented under the overral guidance, coordination and monitoring of a Steering Group Committee of which it has included the Implementing Agency - Tonga Statistics Department, Executing Agencies- Ministry of Finance, Minister of Statistics Department and also the Task Team Leader for the Project assigned from the World Bank. In addition, the Central Services Unit (CSU) within Minitry of Finance has been set up to support all 108RD Financed Projects. 2. SUMMARY OF ACCOUNTING POLICIES 2.1 Basis of Preparation The Financial Statements have been prepared in accordance with the Financing Agreement between the Implementing Agency - Tonga Statistics Department ITSD) and the International Development Association (IDA). The Financial Statements are prepared on the basis of Historical Cash Basis in accordance to the IPSAS Financial Reporting under the Cash Basis of Accounting. The accounting policies based on the Financing Agreement have been applied consistently for the years presented in this Financial Statements. There were no changes in the accounting policies a pplied in this Financial Statement. The Financial Statements are presented in Tongan Pa'anga and values are rounded to the nearest two decimal places unless otherwise specified. 2.2 Reporting Entity The Financial Statements are for the Tonga Statistics Department 2.3 Receipts Grants are received from the project's bank account at the World Bank. The amount is based on the Withdrawal Application from SICBTP uploaded through the Client Connection for approval and transfer from the World Bank to the project's bank account at Tonga Development Bank (TDB). Grant No. Borrower Reference Beneficiary Name CCY Application Amount IDA D5430-TO SICBTP-IDA-14 Statistical Innovation and Capacity Building in Tonga Project TOP $63,41764 IDA D5430-TO SICBTP-IDA-13 Statistical Innovation and Capacity Building in Tonga Project TOP $178,937.42 IDA D5430-TO SICBTP-IDA-12 StatisticalI nnovation and Capacity Building in Tonga Project TOP $256,835.90 TOTAL FROM GRANT NO. IDA 05430-TO $499,190.96 2.4 Payments Payments relate to all expenditure payments made to suppliers for goods and services relatingto SICBTP. Payments are approved by the CEO for Tonga Statistics Department and are paid in accordance with the Program Operational Manual (POM) and the PFMA Treasury Instructions through the centralised government accounting system managed by Treasury Division of the Ministry of Finance. 3. FINANCIAL PERIOD This financial statement is provided for the 12 months starting on the 1stJuly 2022 and ending 30th of June 2023 (12 months). 4. PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment items are stated at cost (TOP) Historical Cost SICBTP Project Tablets, GPS Device and Accessories $69,498.40 Notebook Computer $5,200.00 Network Equipment $14,478.00 Video Conference Equipment and Recording Kit $56,139.29 ICT office & Office Furnishing Improvements $26,253,00 Colour Multifunction Printer/Copier $38,475.55 SICBTP - Total $210,D44,24 5. EXPLANATION OF THE DIFFERENCES BETWEEN ACTUAL AND BUDGET Variance is due to the fact that this is the third year of implementation and the next HIES does not take place until next Financial Year. Furthermore, a Project Accounting Officer and Tourism Satellite Accounts Assistant (TSAA) were both recruited during this financial year, -7 .A