Office of the Auditor General of Rwanda OAG COVID-19 EMERGENCY RESPONSE PROJECT (COVID-19 ERP) Audit Report and Audited Financial Statements For the year ended 30 June 2023 Ineg ity I puli Intr I nnovtio COVID-19 EMERGENCY RESPONSE PROJECT (COVID-19 ERP) BACKGROUND, MANDATE AND GOVERNANCE TABLE OF CONTENTS 1. BACKGROUND, MANDATE AND GOVERNANCE ......................................................2 2. STATEMENT OF MANAGEMENT RESPONSIBILITIES...............................................9 3. REPORT OF THE AUDITOR GENERAL........................................................................10 4. FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023 .......................12 Office of the Auditor General of State Finances 1 COVID-19 EMERGENCY RESPONSE PROJECT (COVID-19 ERP) BACKGROUND, MANDATE AND GOVERNANCE 1. BACKGROUND, MANDATE AND GOVERNANCE 1.1. Background COVID-19 Emergency Response Project was constituted by Law No 003/2020 of 17/04/2020 and is a Project falls under the Ministry of Health. The Project was formed under Credit Financing Agreement (Credit Number 6615-RW) signed between the Government of Rwanda and the International Development Association (IDA) on 09 April 2020 to finance the COVID-19 Emergency Response Project (COVID-19 ERP) and Pandemic Emergency Financing Facility Grant Agreement (PEFF Grant Number TFOB4324) signed on 06 December 2020. The Project was expected to close its activities by 30th June 2023. The first additional financing (Credit Number 6871 -RW and Grant Number D805) was signed on 22 April 2021, the second additional financing on Global Financing Facility (GFF TF Grant Number TF0B6226) was signed on 02 September 2021 and the third additional financing (Credit Number 7092-RW and Grant Number E022-RW) were signed on 6 April 2022. Due to these additional financings, the project's closing date of activities is scheduled by 30t" June 2025. To support the countries to amount an emergency Response and mitigate the impact of the ongoing global pandemic, the World Bank group has created a dedicated fast tracking facility. The fast tracking facility will support the health systems emergency response and disease outbreak preparedness capacity building as well as mitigate the socio-economic cost of this outbreak, which is staggering. The proposed emergency response to the Republic of Rwanda is designed under the COVID-19 Strategic Preparedness and Response Program (SPRP), using the Multiphase Programmatic Approach (MPA) with an overall Program financing envelope of USD 1.4 billion from International Development Association (IDA) and USD 2.7 billion from International Bank for Reconstruction and Development (IBRD). 1.2. Project objectives The Project Development Objective (PDO) is to prevent, detect and respond to the threat posed by COVID-19 and strengthen national systems for public health preparedness in Rwanda. 1.3. Basic information of the project The description of the project is summarised in the table below: Project title COVID-19 Emergency Response Project (COVID-19 ERP) Project Start Date The project approval date is 09th April 2020, The date of signing the initial funding agreement is 09t" April 2020; The project effectiveness deadline is the date after sixty (60) days counted from the agreement signature date. Implementing The implementing Budget Agency is Rwanda Biomedical Centre- agency Project Implementation Unit (RBC-SPIU) Project sponsor International Development Agency (IDA) Project end date The initial Project completion date was 30th June 2023. The Project completion date was extended from 30t" June 2023 to 30t" June 2025 due to additional financing. Office of the Auditor General of State Finances 2 COVID-19 EMERGENCY RESPONSE PROJECT (COVID-19 ERP) BACKGROUND, MANDATE AND GOVERNANCE Credit Number 6615-RW, 6871-RW, 7092-RW Grant Number TFOB4324, D805, GFF TFOB6226, E022-RW Line Ministry of the Ministry of Health (MoH) Program Strategic goals of the To prevent, detect and respond to the threat posed by COVID-19 and project strengthen national systems for public health preparedness in the Republic of Rwanda. Project Scope and The project will support the following components: Components Component 1: Case Detection, Confirmation and Contact Tracing Enhancing case detection, disease surveillance, sample collection and ensuring rapid laboratory diagnoses and carrying out contact tracing for COVID- 19 and other disease outbreaks through financing and support for: (a) Enhancement of case detection through: (i) Screening travellers at ports of entry as well as in priority communities and targeted health facilities; (ii) Diagnosing cases and referring them for treatment as needed; (iii) Carrying out contact tracing to minimize risk of transmission; (iv) Conducting risk assessments to identify hot spot areas of transmission and provide timely information to policymakers including digital maps that can help in visualization of transmission; and (v) Carrying out multi-sectoral simulation exercises for COVID- 19 and other disease outbreaks; (b) Strengthening the health system through; inter alia: (i) Providing medical supplies and equipment (e.g. thermo scanners; test kits; drugs; lab equipment and supplies, personal protective equipment); (ii) Training and capacity building for frontline workers; and (iii) Operating costs for rapid response teams and recruitment of additional personnel. Component 2: Public Health Measures and Clinical Care Capacity Strengthening of public health policies and measures and establishment of critical clinical care capacity including promotion of digital solutions through financing and support for: (a) Public health policies regarding: (i) Social distancing measures (such as restrictions on border crossings, work-at-home policies, restricting public gatherings); Office of the Auditor General of State Finances 3 COVID-19 EMERGENCY RESPONSE PROJECT (COVID-19 ERP) BACKGROUND, MANDATE AND GOVERNANCE (ii) Personal hygiene promotion, including handwashing and proper cooking; (iii) Risk communication and community engagement using local channels to disseminate messages about the risks associated with COVID-19 and other disease outbreaks and applying innovative digital solutions such as mobile apps for sending out messages; (iv) Production and dissemination of communication materials. (b) Provision of clinical care through, (i) Establishment of isolation capacity at a selected number of national and district hospitals including the rehabilitation of existing structures and leveraging of isolation units established for other infectious diseases; (ii) Providing health personnel with appropriate protective equipment and hygiene materials; (iii) Support for provision of medical and laboratory equipment and supplies, waste management equipment and supplies and video conferencing equipment for tele-medicine; (iv) Minor civil works (mainly refurbishments); and (v) Operating costs, including recruitment of additional clinical personnel. (c) Purchase of project COVID- 19 vaccines, (d) Vaccines communication campaign, (e) Screening high-risk groups. Component 3: Monitoring and Evaluation (M&E) and Project Management This component supports M&E, and project management. To this end, it supports the following activities: Financing and support for: (a) Project management including i. Strengthening of public structures for the coordination and management of the Project, including central and local (decentralized) arrangements for the coordination of Project activities (this will include support for the COVID-19 Incident Management System Coordination Structure); ii. The carrying out of financial management and procurement requirements of the Project; iii. Project coordination activities, and; iv. Operating costs. Office of the Auditor General of State Finances 4 COVID-19 EMERGENCY RESPONSE PROJECT (COVID-19 ERP) BACKGROUND, MANDATE AND GOVERNANCE (b) Monitoring and evaluation of the Project including: (i) Assessment of implementation progress and review of operational plans; (ii) Technical assistance, and (iii) COVID- 19 Vaccination specific monitoring and evaluation. Component 4: Contingency Emergency Response Component (CERC) Providing immediate response to an Eligible Emergency, as needed. Component 5: Protecting essential health and nutrition services (New) (i) Outreach activities & catch up campaigns; (ii) Provision of nutrition and Reproductive, Maternal, Newborn, and Child Health (RMNCH) oxygen commodities; (iii) Organising transport system for patients and health providers; (iii) Support to CHWs reform & performance based financing scheme; (iv) Integration of Non-Communicable diseases (NCD) screening into Reproductive, Maternal, Newborn, and Child Health (RMNCH) program; (v) Capacity building of health providers and Community Health Workers (CHWs); strategic information and decision-making. 1.4. Project cost and financing The project is estimated to cost USD 92.39 million. It is Co-financed by IDA credit number 6615-RW of USD 14.25 Million, IDA credit number 6871-RW of USD 30.2 Million, First Additional financing for COVID 19 Pandemic Emergency Facility Fund (PEFF Grant Number TF0B4324) of USD 0.942 million and Second Additional financing for COVID-19 Facility Grant (Grant Number D805) of USD 15 million and third additional financing of USD 32 Million as analysed in the table below: Table: Expected disbursement per project component and source of financing: Project Components and Original *PEF AD *AF *8GFF *AF Total sub-components (P173855) (P175252) (P176304 GRANT (P178282 ...) TFOB6226 ) USD USD USD USD USD USD (million) (million) million) million) (million) (million) Component 1: Case 5.9 0.94 - - - 6.84 Detection, confirmation and contact tracking.. - Disease surveillance, 2.2 2.20 RRTs and case investigation -Laboratory capacity and 2.8 0.94 3.74 specimen transport - Points of Entry 0.9 - - - - 0.90 Office of the Auditor General of State Finances 5 COVID-19 EMERGENCY RESPONSE PROJECT (COVID-19 ERP) BACKGROUND, MANDATE AND GOVERNANCE Project Components and Original *PEF AD *AF *8GFF *AF Total sub-components (P173855) (P175252) (P176304 GRANT (P178282 ) TFOB6226 ) USD USD USD USD USD USD (million) (million) 1 (million) (million) (million) (million) Component 2: Public 8 - 29.2 - 31.717 68.917 health measures and clinical care capacity - Risk communication and 0.4 1 1.4 community engagement Case 5.8 0.2 6 management/specialized units/lab capacity - Infection prevention and 1.8 18.7 20.5 control - Vaccine procurement & -.8 23.004 26.804 Delivery - Systems strengthening 3 5.041 8.041 including maintaining essential health services - Other vaccine - - 2.5 3.672 6.172 deployment costs Component 3: Project 0.35 - 0.8 0.283 1.433 Management and M&E -Country level 0.2 0.15 0.35 coordination, planning and monitoring -Project Management 0.15- 0.65 0.8 Immunization monitoring, --0.283 0.283 vaccine safety surveillance and post introduction evaluation Component 4: CERC Component 5: Protecting - - 15.00 - 15.00 essential health and nutrition services (New) -Outreach activities & 0.6 0.6 catch up campaigns -Provision of nutrition and 3.55 - 3.55 RMNCH oxygen commodities -Support to CHWs reform 3.7 3.7 & performance based financing scheme -Integration of NCD 3 3 screening into RMNCH program -Capacity building; 4.15 - 4.15 strategic information and decision making T otal costs 14.25 0.94 3015 32.283 1 92.19 GFF- Global Financing Facility for Women, Children and Adolescents, AF- Additional Financing, PEF- Pandemic Emergency Financing Facility, GA- Grant Agreement, FA- Financing Agreement. Office of the Auditor General of State Finances 6 COVID-19 EMERGENCY RESPONSE PROJECT (COVID-19 ERP) BACKGROUND, MANDATE AND GOVERNANCE 1.5. Funding summary * COVID-19 Emergency Response Project (IDA Loan 66150-RW), duration is from 09 April 2020 to 31 December 2022 with an approved budget of 13,100,000 Euros (USD 14.25 million), * The Pandemic Emergency Financing Facility (Grant TF04324), duration is from 6"' December 2020 to 31 March 2021 with an approved budget of 942,857 USD, * COVID-19 Emergency Response Project (IDA Loan 68710-RW), duration is from 21st June 2021 to 31 December 2022 with an approved budget of 10,500,000 SDR(USD 15 million), * COVID-19 Emergency Response Project (Grant D8050) duration is from 21 June 2021 to 31 December 2022 with an approved budget of 10,500,000 SDR (USD 15 million), * COVID-19 Emergency Response Project second additional financing on GFF TF (Grant TF0B6226) with an approved budget of 15,000,000 USD from 02 September 2021 to 30 June 2023, * COVID-19 Emergency Response Project third additional financing (Loan 70920-RW & Grant E0220-RW) with an approved budget of 14,300,000 EURO & 11,500,000 USD on 06 April 2022. (USD 32 million). Source of Development Development Amount received Undrawn balance funds Partner Partner (drawn) as at 30 June as at 30 June 2023 Commitment Commitment 2023 Currency (A) (B) (A)-(B) (i) Grant TFOB4324 USD 942,857 938,270.10 4,586.90 IDA D8050 SDR 10,500,000 10,474,700.87 25,299.13 TFOBO6226 USD 15,000,000 7378475.35 7,621,524.65 EO220-RW SDR 11,500,000 7272836.08 4,227,163.92 (ii) Loan IDA 66150 EURO 13,100,000 13,099,998.35 1 65 IDA 68710 SDR 10,500,000 10,463,059.77 36,940.23 7092-RW EURO 14,300,000 7956165.19 6,343,834.81 1.6. Governance of COVID-19 EMERGENCY RESPONSE PROJECT (COVID-19 ERP) 1.6.1. Management team The management team who held office during the year ended 30 June 2023 until the time of audit in October 2023 is as follows: Name Role Position Prof. Dr. MUVUNYI Director General From 26 January 2022 to date MAMBO Claude Mrs. BIGIRIMANA Deputy Director General From 26th January 2022 to date. Noella Mr. UWAYO Theo Chief Finance Officer, He joined RBC Principe from 14 April 2021 serving as the Deputy Director General of RBC to 04th February 2022. He is currently serving RBC as the Chief Finance Office of the Auditor General of State Finances 7 COVID-19 EMERGENCY RESPONSE PROJECT (COVID-19 ERP) BACKGROUND, MANDATE AND GOVERNANCE Name Role Position Officer (CFO) since 05th February 2022 to date. Dr. Gilbert BIRARO SPIU Coordinator Project Coordinator, from 01st April 2015 to date. Dr SANGANO Justin Operations Program Operations Program Manager, from Manager 1st January 2018 to date Mr. Program Manager From 1 November 2018 to date. MBWIRABUMVA Isaac Mr. SPIU/RBC Corporate Corporate Service Program Manager, NSENGIYUMVA Services Program from 01st November 2022 Bruce Manager Mr. BITEGA Finance Finance Coordination Specialist, Epaphrodite Management m1 Ap 2 o date Mr. KANEZA COVID-19 ERP Financial From 1st December 2017 to date. Frangois Xavier Specialist Office of the Auditor General of State Finances 8 COVID-19 EMERGENCY RESPONSE PROJECT (COVID-19 ERP STATEMENT OF MANAGEMENT RESPONSIBILITIES FOR THE YEAR ENDED 30 JUNE 2023 2. STATEMENT OF MANAGEMENT RESPONSIBILITIES Article 78 of Organic Law No 002/2022/OL of 12/12/2022 on Public Finance Management requires each public sector entity to prepare and submit its annual financial statements to the Minister with a copy thereof to the Auditor General of State Finances within forty-five (45) days following the end of the fiscal year. Article 20 of Organic Law No 002/2022/OL of 12/12/2022 on Public Finance Management further stipulates that the Chief Budget Manager is responsible for maintaining accounts and records of the budget agency, preparing reports on budget execution, managing revenues and expenditures, preparing, maintaining and coordinating the use of financial plans, managing the financial resources for the budget agency effectively, efficiently and transparently, ensuring sound internal control systems in the budget agency and safeguarding the public property held by the budget agency. As Chief Budget Manager, I accept responsibility for the annual financial statements, which have been prepared using appropriate accounting standards applicable to Public entities as determined by Article 99 of the Ministerial Order No 001/16/10/TC of 26/01/2016 relating to financial regulations. These financial statements have been extracted from the accounting records of COVID-19 Emergency Response Project (COVID-19 ERP) and the information provided is accurate and complete in all material respects. The financial statements also form part of the consolidated financial statements of the Government of Rwanda. In my opinion, the financial statements give a true and fair view of the state of the financial affairs of COVID-19 Emergency Response Project (COVID-19 ERP). I further confirm that COVID-19 Emergency Response Project (COVID-19 ERP) maintained proper accounting records were which can be relied upon in the preparation of financial statements. I also confirm that adequate systems of internal control were maintained and operated effectively during the year to safeguard the assets of the budget agency. Nothing has come to the attention of management to indicate that COVID-19 Emergency Response Project (COVID-19 ERP) will not continue operating as a going concern for the foreseeable future. Signature: Mr. Theo Principe UWAYO Chief Budget Manager Date:men ofMti Statement of Management Responsibilities 9 COVID-19 EMERGENCY RESPONSE PROJECT (COVID-19 ERP) AUDIT REPORT ON FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023 3. REPORT OF THE AUDITOR GENERAL REPORT ON THE FINANCIAL STATEMENTS Mr. Theo Principe UWAYO Chief Budget Manager 3.1. Opinion As required by Article 166 and 167 of the Constitution of the Republic of Rwanda and articles 6 and 14 of Law No 79/2013 of 11/09/2013 determining the mission, organization and functioning of the Office of the Auditor General of State Finances (OAG), I have audited the financial statements of COVID-19 Emergency Response Project (COVID-19 ERP) for the year ended 30 June 2023. These financial statements comprise the statement of financial position as at 30 June 2023, and the statement of revenue and expenditure, statement of cash flows and budget execution report for the year then ended, and a summary of significant accounting policies and other explanatory notes. These financial statements are set out on pages 12 to 29. In my opinion, COVID-19 Emergency Response Project (COVID-19 ERP) financial statements which comprise of its financial position as at 30 June 2023, its financial performance and its cash flows for the year then ended were prepared in compliance with the Ministerial Order No 001/16/10/TC of 26/01/2016 relating to financial regulations and Organic Law N0 002/2022 OL of 12/12/2022 on Public Finance Management. 3.2. Basis for opinion I conducted the audit in accordance with the International Standards of Supreme Audit Institutions (ISSAIs). My responsibilities under ISSAls are described in section 3.4 of this report. I am independent of COVID-19 Emergency Response Project (COVID-19 ERP and have fulfilled my ethical responsibilities in accordance with the ethical requirements that are relevant to my audit of financial statements of public entities as determined by the Code of ethics for International Organization of Supreme Audit Institutions (INTOSAI). I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion. 3.3. Responsibilities of management for the Financial Statements According to Organic Law N0 002/2022/OL of 12/12/2022 on Public Finance Management, management of COVID-19 Emergency Response Project (COVID-19 ERP) is responsible for keeping accounting records and books of account, and preparation of financial statements in accordance with the financial regulations prescribed by the Minister in Ministerial Order N0 001/16/10/TC of 26/01/2016 relating to financial regulations. This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is responsible for assessing the COVID-19 Emergency Response Project (COVID-19 ERP)'s ability to continue as a going concern, Office of the Auditor General of State Finances 10 COVID-19 EMERGENCY RESPONSE PROJECT (COVID-19 ERP) AUDIT REPORT ON FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023 disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless Government either intends to discontinue operations of the COVID-19 Emergency Response Project (COVID-19 ERP). Those charged with Governance of this project are the Project Steering Committee. They are responsible for overseeing COVID-19 Emergency Response Project (COVID-19 ERP)'s financial reporting process. 3.4. Auditor General's responsibilities for the audit of the financial statements My objective when conducting an audit is to obtain reasonable assurance about whether the 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 my opinion. Misstatements can arise from fraud or error and are considered material if individually or in aggregate, they could reasonably be expected to influence economic decisions of users taken on the basis of these financial statements. An audit conducted in accordance with ISSAls requires an auditor to exercise professional judgment and maintain professional skepticism throughout the audit and involves: * The identification and assessment of the risks of material misstatement of the financial statements, whether due to fraud or error; design and perform procedures responsive to those risks and to obtain sufficient and appropriate audit evidence to provide a basis for the auditor's 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 controls. * Obtaining 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 purposes of expressing an opinion on the effectiveness of internal control. * Evaluating the appropriateness of accounting policies used, the reasonableness of accounting estimates made by management. * Concluding 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 COVID- 19 Emergency Response Project (COVID-19 ERP)'s ability to continue as a going concern as well as evaluating the presentation of the financial statements. * Evaluation of the overall presentation, structure and content of the financial statements, including disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieved fair presentation. KAMUHIRE Alexis AUDITOR GENERAL KIGALI, ....... ...... ...............2023 Office of the Auditor General of State Finances 11 COVID-19 EMERGENCY RESPONSE PROJECT (COVID-19 ERP) AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023 4. FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023 4.1. STATEMENT OF STATEMENT OF FINANCIAL PERFORMANCE FOR THE YEAR ENDED 30 JUNE 2023 Description Notes 12 months to 12 months to 30 June 2023 30 June 2022 Frw Frw Revenue Grants 2 14,868,821,689 5,793,461,187 Transfer received from public debts 3 9,082,042,988 12,203,775,214 Transfers from reporting entities 4 4,357,337 Total revenue 23,950,864,677 18,001,593,738 Expenses Goods and services 5 13,191,784,890 31,953,258,193 Transfers to reporting entities 6 1,504,041,284 798,324,900 Transfers to subsidiary units 7 722,877,000 460,928,840 Social assistance 8 1,656,791,897 Other expenses 9 125,956,650 Capital expenditure 10 3,140,270,331 1,686,051,161 To tal expenses - 20,215,765,402 35,024,519,744 Other gýains and losses Foreign exchange gain il 436,030,310 2329,982 Foreign exchange loss il (206,987) (46,967,761) To tal gains and losses 4355823,323 23,637,779) Surplus/( Deficit) for the period 4,170,922,598 (17,046,563,785) The notes set out on pages 18 to 29 form an integral part of the financial statements. Audited Financial Statements 12 COVID-19 EMERGENCY RESPONSE PROJECT (COVID-19 ERP) AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023 4.2. STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2023 Description Notes Balance as at Balance as at 30Jne 202 30Jue 2022 Frw Frw Assets Cash and cash equivalents 12 3,887,270,410 6,063,607 Total assets (A) 3,887,270,410 6,063,607 Equity and liabilities Current liabilities Current accounts payable 13 161,271,665 452,888,695 Tax liabilities 13 1,440,000 5,878,899 Tota libiliies(B)12,711,665.458,767,594 Equity Accmultdoein aac 452,703,987) 16,593,859,798 Adlustments made during the period 14 6,340,134- Deict/uplu oftepero 4,170,922,598 (17.046,563,785) Total equity 3,724,558,745 (452,703,987) Total equity and liabilities____ 3,887,270,410 6 ,0 6 3 ,6 0 7 The notes set out on pages 18 to 29 form an integral part of the financial statements. The financial statements were approved by COVID- 19 ERP management and were signed on its behalf by: Prepared by: Francois Xavier KANEZA SPIU Financial Specialist Sigiature Date Verified by: EPAPHRODITE BITEGAI Director of Finance Signatuire Date Checked by : Bruce NSENGIYUMVA Q~- Head of Corporate Services Sig 5ature Checked by : BIRARO Gilbert SPIU Coordinator Signa . <\ Date Approved by: Theo UWAYO Principez / 9fZ 22 Chief Budget Manager S 1NDate Audited Financial Statements 13 COVID-19 EMERGENCY RESPONSE PROJECT (COVID-19 ERP) AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023 4.3. STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2023 Description 12 months to 12 months to 30 June 2023 30 June 2022 Frw Frw Cash flows from operating activities Receipts Grants 14,868,821,689 5,793,461,187 Transfer received from public debts 9,082,042,988 12,203,775,214 Transfers from reporting entities -4,357,337 Expenses Goods and services 13,191,784,890) (31,953,258,193) Transfers to reporting entities (1,504,041,284) 1 (798,324,900) Transfers to subsidiary units 722,877,000) (460,928,840) Other expenses (125,956,650) Adjusted for: Changes in receivables 15,562,134,107 Changes in payables 296,055,929) 456,266,366 Foreign currency exchange differences (23,637,779) Prior year adjustments 6,340,134 Foreign Currency Exchange differences 435,823,323 (23,637,779) Net cash flows from operating activities (A) 7,021,477,134 657,887,849 Cash flows from investing activities Capital expenditure (3,140,270,331) (1,686,051,161) Net cash flows from investing activities (B) (3,140,270,331) (1, 686,051,161) Cash flows from financing activities Proceeds from borrowings Net cash flows from financing activities (C) Net decrease/Increase in cash and cash 3,881,206,803 (1,028,163,312) equivalents (A+B+C) Cash and cash equivalents at beginning of period 6,063,607 1,034,226,919 Cash and cash equivalents at end of period 3,887,270,410 6,063,607 The notes set out on pages 18 to 29 form an integral part of the financial statements. A udited Financial Statements 14 COVID-19 EMERGENCY RESPONSE PROJECT (COVID-19 ERP) AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023 4.4. STATEMENT OF CHANGES IN NET ASSETS FOR THE YEAR ENDED 30 JUNE 2023 Description Accumulated Movements Total surplus/ deficit during the year 2021/2022 2021/2021 2021/2022 Frw Frw Frw Accumulated surplus/(deficit) 16,593,859,798 (17,046,563,785) (452,703,987) from previous years Changes in net assets items 16,593,859,798 (17,046,563,785) (452,703,987) Accumulated Movements Total surplus/ during the year 2022/2023 (deficit) 2022/2023 2021/2022 Accumulated surplus/(deficit) (452,703,987) 4,170,922,598 3,718,218,611 Accumulated adjustments - 6,340,134 6,340,134 Changes in net assets items (452,703,987) 4,177,262,732 3,724,558,745 The notes set out on pages 18 to 29 form an integral part of the financial statements. Audited Financial Statements 15 COVID-19 EMERGENCY RESPONSE PROJECT (COVID-19 ERP) AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023 4.5. STATEMENT OF COMPARISON OF BUDGET AND ACTUAL AMOUNTS FOR THE YEAR ENDED 30 JUNE 2023 Budget lines/Description Budgeted Actual receipts/ Variance Performance amounts expenditure Frw Frw Frw (%) A B A-B (B/A)*100 Receipts Grants 14,868,821,689 (14,868,821,689) Other revenues 436,030,310 (436,030,310) - Total receipts 15,304,851,999 (15,304,851,999) - Expenditure Goods and services 15,718,952,385 13,191,784,890 2,527,167,495 83.9 Transfers to reporting entities 134,870,000 1,504,041,284 (1,369,171,284) 1,115.2 Transfers to subsidiary units 2,188,002,562 722,877,000 1,465,125,562 33 Acquisition of fixed assets 1,920,000,000 1,656,791,897 263,208,103 86.3 Foreign exchange loss - 206,987 (206,987) - Total payments 19,961,824,947 17,075,702,058 2,886,122,889 85.5 Acquisition of noncurrent 4,408,474,512 3,140,270,331 1,268,204,181 Assets Capital expenditure .4,408,474,512 3,140,270,331 1,268,204,181 71.2 Financmng- Net incurrence of liabilities 9,082,042,988 (9,082,042,988) Transfers received related to 9,082,042,988 (9,082,042,988) public debts Total net incurrence of - 9,082,042,988 (9,082,042,988) - liabilities The notes set out on pages 18 to 29 form an integral part of the financial statements. Explanation for major variances: * Transfers to reporting entities: The variance of 1,115.2% was due to the fact that the revised budget of Frw 134,870,000 was meant for transfers to districts whereas the actual of Frw 1,504,041,284 includes transfers to Districts equivalent to Frw 83,114,884 and transfers to public hospitals amounting to Frw 1,420,926,400. * Transfers to subsidiary units: The revised budget of Frw 2,188,002,562 was planned as transfers combining both public and private hospitals whereas the utilized budget of Frw 722,877,000 is for private hospitals only. Generally, the budget related to transfers was used at a rate of 98%. Nevertheless, due to the fact that initially IFMIS setting did not distinguish between public and private health facilities, all transfers to both private and public hospitals were budgeted under transfers to subsidiary units for a total budget of Frw 2,188,002,562. As at 30 June 2023, the total execution stood at Frw 2,143,803,400 (i.e. Frw 1,420,926,400 for public and Frw 722,877,000 is for private hospitals). Thus, the separation of transfers to reporting entities and transfers to subsidiary units was completed while the budget was already voted Going forward, in consultation to MINECOFIN, this has been corrected during this year ending 30 June 2024. Audited Financial Statements 16 COVID-19 EMERGENCY RESPONSE PROJECT (COVID-19 ERP FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023 * Capital expenditure: The variance of 71.2 % was due to fact that the Project planned to make a payment ofFrw 1,150,800,000 for supply of UPS which were ordered in June 2023 and the delivery occurred in FY 2023-2024. In addition, there is 15% equivalent to Frw 180,830,411 that was budgetedfor paying the incinerators but not recognized as at 30 June 2023 due to the fact that contract terms required installation and training before payment. Office of the Auditor General of State Finances 17 COVID-19 EMERGENCY RESPONSE PROJECT (COVID-19 ERP) AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023 4.6. NOTES TO THE FINANCIAL STATEMENTS 4.6.1. Significant accounting policies Public entities maintain their books of account on a modified accrual basis of accounting as prescribed in basis for preparation. Statement of compliance The financial statements have been prepared in accordance with the Organic Law no 002/2022 of 12/12/2022 on Public Finance Management and related legal framework. These financial statements have been authorized for issue by the Chief Budget Manager on 10th August 2023. The financial statements have been prepared on a going concern basis and the accounting policies have been applied consistently throughout the period. The presentation and classification of items in the financial statements are consistent from one period to the next and takes into consideration progressive improvements as contained in the Government of Rwanda roadmap to migrate to accrual IPSAS. Reporting entity The Consolidated Financial Statements have been prepared by RWANDA COVID-19 Emergency Response Project pursuant to Articles 13, 78 and 79 of the Organic Law No 002/2022/OL OF 12/12/2022 on Public Finance Management that empowers the Minister in charge of Finance and Economic Planning to prepare consolidated financial statements of the Government of Rwanda. 1. Basis of preparation The financial statements have been prepared on the basis of historical costs unless otherwise stated. The statement of cash flow statement is prepared using the direct method. The specific accounting basis for major items in the financial statements are provided below. Except for the subsidiary entities affiliated to the decentralised entities, public entities shall maintain their books of account on a modified accrual basis of accounting. The subsidiary entities affiliated to the decentralised entities shall maintain their books of account on a modified cash basis of accounting and progressively move to the same accounting basis as that of the rest of the public entities. In this context, modified accrual basis of accounting means that financial transactions and events shall generally be recognized in the books of account when they occur and not only when cash or its equivalent is received or paid, except in the following circumstances when transactions will be treated on a cash basis. (i) Public debt (principal and interest): Involving Treasury bills, treasury bonds, corporate bonds, sovereign bonds and external loans acquired by the Ministry or any other debt the State may take on will be treated on cash basis and recognized as receipt during the year of receipt and as expenditure in the year of repayment. However, loans acquired directly by a public entity and any associated interest shall be treated on an accrual basis and recognized as liabilities. Audited Financial Statements 18 COVID-19 EMERGENCY RESPONSE PROJECT (COVID-19 ERP) AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023 (ii) Inventories: These are assets in the form of materials to be consumed in the rendering of services. Inventories include assets such as consumable stores, maintenance materials. These will be treated on cash basis, recorded as expenditure during the year of acquisition, and treated as revenue in the year of disposal. (iii) Non-exchange transactions: These arise where an entity receives value from another entity without giving approximately equal value in exchange. These include fines and penalties, transfers, gifts and donations and shall be recognized when cash is received, (iv) Non-current assets (tangible and intangible assets): Such as vehicles, furniture, equipment, plant and tools will be treated on cash basis and recorded as capital expenditure during the year of acquisition and revenue in the year of disposal, (v) Non-current assets (tangible and intangible assets): Such as vehicles, furniture, equipment, finance leases, Plant and tools and investment property are treated on cash basis and presented as capital expenditure during the year of acquisition and revenue in the year of disposal. (vi) Investments excluding those directly made by public entities: Shareholding in public corporations, investments in associates, equity interest in joint ventures, lending and on- lending by government entities will be treated on cash basis and recorded as capital expenditure during the year of acquisition and revenue in the year of disposal. The financial statements are presented in Rwandan Francs (Frw). (a) Reporting entity The Financial Statements have been prepared by COVID-19 Emergency Resposne Project (b) Reporting periods The Government of Rwanda fiscal year runs from 1st July to 30th June. These financial statements cover the period from lstJuly 2022 to 30t" June 2023. The comparative figures reflect the 12 months ended 30th June 2022. (c) Key assumptions and judgements These financial statements, reflect the Government's financial position as at 30 June 2022, and the financial results of operations and cash flows for the period/year ended on that date. Included in these financial statements are a number of judgements, estimations and assumptions. The assumptions are based on information available at the time of the preparation of the financial statements. It should therefore be noted that actual results may differ from the assumptions stated and thus have a material impact on the financial statements. Audited Financial Statements 19 COVID-19 EMERGENCY RESPONSE PROJECT (COVID-19 ERP) AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023 a. Presentation currency The functional currency of the Government of Rwanda is the Rwandan Franc. For reporting purposes, the financial statements are translated into Rwandan Francs (Frw). The rates used to translate foreign currency balances is the average rate applicable by National Bank of Rwanda as at 30 June 2022. b. Areas of significant estimation These financial statements do not have significant estimates so far. For the non-current assets and inventory balances disclosures, the acquisition cost depreciation have been used. c. Adoption of new and revised standards The Government is in the process of transitioning to IPSAS through a phased approach that involves a six-year implementation plan. The current year is year 4 of the transition process. By the end of the six-year implementation period, the Government plans to have fully transitioned to IPSAS and adopted all relevant standards. 1.1. Significant accounting policies The accounting policies set out in this section have been consistently applied by all consolidated entities and for all the years presented. I. Revenue a. Revenues from non-exchange transactions * Grants Grants are transfers received by government units, from other resident or non-resident government units or international organizations that do not meet the definition of a tax, subsidy, or social contribution. This include current and capital transfers received from foreign Governments, international organizations and from other general government units. In the context of this Project, grants are transfers received from World Bank. Grants are recognised in the books of accounts when cash is received. * Transfers from other general government units Transfers from other general Government units includes Transfers from National Treasury, Inter-entity and intra-entity transfers. Inter-entity transfers refer to transfers between cost or revenue centres belonging to different public entities while intra-entity refers to transfers between cost or revue centres within the same budget agency. A transfer is a transaction in which one institutional unit provides a good, service, or asset to another unit without receiving from the latter any good, service, or asset in return as a direct counterpart. Grants are normally receivable in cash, but may also take the form of the receipt of goods or services (in kind). Grants receivable are classified first by the type of unit providing the grant and then by whether the grant is current or capital. Audited Financial Statements 20 COVID-19 EMERGENCY RESPONSE PROJECT (COVID-19 ERP) AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023 * Other revenue These are other revenue not classified in other classes of revenue. This includes foreign exchange gains, claims from insurance and guarantees seized. * Revenues from exchange transactions These transactions shall be recognised on accrual basis. * Borrowings The Ministry of Finance and Economic Planning is the principal borrowing agent for Central Government. Public debt and associated interest is recognized on cash basis. Proceed from loan borrowing is recognized as revenue during the year of receipt at cost and repayment as expenditure in the year of repayment. Cash is considered as received when recipient entity received a transfer advice from the partner rather than when cash is received in the bank account of the receiving entity. Other loans (principal and any associated interest) acquired directly by a public entity (e.g. those acquired by Decentralized Entities) are treated on an accrual basis and recognized as liabilities. II. Expenditure All expenditure is recognised on accrual basis. However, the point of recognition may be different according to their categories. a) Goods and services Goods and services consists of the value of goods and services used for the production of market and nonmarket goods and services. The value of goods or services is recorded when the goods or services are actually used rather than when they were acquired or paid for. In practice, these events often coincide for inputs of services but not for goods, which may be acquired some time in advance of their use. The value of goods purchased and held for resale is recorded as goods and services when they are sold. b) Transfers to public entities Transfers to public entities are made in the form of direct/indirect cash transfers and direct payments to public reporting entities. Payments from the Central Treasury account are originated and approved by the respective Public entities before they are forwarded to the Treasury for payment. Direct/indirect cash transfers are transferred together with associated activities to be performed. The expenditure/receipt is recognised when actual cash is transferred. Cash is considered as transferred when consideration for payment such as EFT, Cheque, Payment Orders are approved level 2 rather than when cash and cash equivalent are debited from the bank statement. For direct payments expenditure is recognized when goods/services are received and when commitment is approved for all other expenditures. Audited Financial Statements 21 COVID-19 EMERGENCY RESPONSE PROJECT (COVID-19 ERP) AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023 During the consolidation process while the actual spending reported by budget agencies is regarded as expenditures. c) Acquisition of fixed assets The expenditure on acquisition of property plant and equipment items is not capitalized. The cost of acquisition and proceeds from disposal of these items are treated as expenditure and income items respectively. Where an asset is acquired in a non-exchange transaction for nil or nominal consideration and the fair value of the asset can be reliably established, a contra transaction is recorded as revenue and as Acquisition of Fixed Assets otherwise it not recorded rather a fixed asset register which contains details of assets is maintained by each public entity. d) Other expenses Any other expenses not part of the ones above will fall into this category and shall be for on cash basis of accounting and recognised in books of accounts when cash and cash equivalent is paid. III. Assets and liabilities a) Cash and bank balances They comprise cash on hand and balances with banks. b) Payables These mainly relate to invoices for goods and services, which were outstanding on the date of the closure of the fiscal year. These are recognized as liabilities for that specific fiscal year. All goods received notes are recognised as liabilities if not yet paid as at the end of the period. It also includes short term borrowings received by budget agencies from Local Commercial Banks as these are not regarded as public debt. IV. Other relevant information a) Changes in accounting policies and estimates When presentation or classification of items in the financial statements is amended or accounting policies are changed voluntarily, comparative figures are restated to ensure consistency with the current period unless it is impracticable to do so. b) Foreign currency transactions Transactions denominated in foreign currencies are initially translated to the Rwandan Franc at the foreign exchange rate at the date of transaction. The National Bank of Rwanda provides exchange rates for major foreign currencies on a daily basis. These are presented for selling rate (rate the bank will sell foreign currency to its clients), Audited Financial Statements 22 COVID-19 EMERGENCY RESPONSE PROJECT (COVID-19 ERP) AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023 buying rate (rate the bank will buy foreign currency from its clients) and average rate (average between the selling and buying rate). During the year, revenue items are translated using the selling rate (this equals the Buying rate presented at BNR website) of the transaction day whereas the Expense items should be translated using the buying rate (this equals the selling rate presented at BNR website) of the transaction day. The associated exchange losses are recorded as other expenditure while exchange gains should be recorded as other revenue. At the end of the year, book balances, Assets (such as bank and cash and accounts receivables) and liability (such as accounts payables), denominated in foreign currencies are converted into the Rwanda Franc at the average rate of exchange ruling on that closing date, as issued by the National Bank of Rwanda. The associated exchange losses/gains are recorded as expenditure/income in the books. c) Comparative figures Adjustments have been made on the opening balances of the current financial period with respect to adjustments made by individual entities relating to the comparative periods. d) Subsequent events There have been no events subsequent to the financial yearend with a significant impact on the financial statements for the year ended 30 June 2022. e) Contingencies The Public entity does not recognize a contingent liability, but discloses details of any contingencies in the notes to the financial statements, unless the possibility of an outflow of resources embodying economic benefits or service potential is remote. 2. Grants During the 12 months to 30 June 2023, COVID-19 ERP received grants from Development Partners as detailed in the table below: ID Description 12 months to 12 months to Account 30 June 2023 30 June 2022 Frw Frw 138113 Health sector budget support (Grant 14,868,821,689 5,793,461,187 received from the World Bank) Total 14,868,821,689 5,793,461,187 Audited Financial Statements 23 COVID-19 EMERGENCY RESPONSE PROJECT (COVID-19 ERP) AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023 3. Transfer received from public debts During the year ended 30 June 2023, COVID-19 ERP received loan as detailed in the table below: ID Description 12 months to 12 months to Account 30 June 2023 30 June 2022 Frw Frw 139214 Transfer from public debt-external project 9,082,042,988 12,203,775,214 loan (Proceeds from borrowings in respect of loan received from the World Bank) Total 9,082,042,988 12,203,775,214 4. Transfers from reporting entities During the year ended 30 June 2023, COVID-19 ERP received funds from government reporting entities as detailed in the table below: ID Description 12 months to 12 months to Account 30 June 2023 30 June 2022 Frw Frw 139111 Intra transfers from Government - 4,357,337 developments projects - RBC Total - 4,357,337 5. Goods and services During the year ended 30 June 2023, COVID-19 ERP consumed goods and services as detailed in the table below: ID Description 12 months to 12 months to Account 30 June 2023 30 June 2022 Frw Frw 221101 Stationery and printing consumables 397,584,892 424,673,500 221102 Beverages, tea, coffee, etc. 86,002,724 221104 Computer consumables 221201 Water and electricity Bills 221402 Fax and telephone 126,659,990 280,442,059 221403 Internet costs 252,600,170 221599 Other licenses 111,772,659 221601 Bank charges 626,453 741,303 221603 Bank statement fees - 31,998 221703 Adverts and announcements 210,266,208 179,164,381 221704 Meetings and special assembly costs 854,607,051 395,803,205 222108 Technical assistance remuneration 124,107,680 - 222109 Contractual personnel 5,807,872,959 658,139,126 222112 Cleaning services - 258,918,296 222118 Performance Based Financing (PBF) 232,102,845 317,125,395 222199 Other professional services fees - 450,883,056 Audited Financial Statements 24 COVID-19 EMERGENCY RESPONSE PROJECT (COVID-19 ERP) AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023 ID Description 12 months to 12 months to Account 30 June 2023 30 June 2022 Frw Frw 223101 Transportation cost for domestic business 791,243,664 437,382,418 travel (airplane, bus, train, taxi) 223104 Domestic per diems 2,084,184,035 904,163,622 223108 Fuel and lubricants 179,650,909 185,906,770 223120 Clearing of goods 31,139,633 224101 Maintenance and or repairs of 339,705,845 administrative buildings 224110 Maintenance and repairs of vehicles and 61,563,753 154,244,660 motorbikes 224112 Maintenance and/or repairs of hospital and 349,021,028 health centre equipment 224116 Maintenance and/or repairs of other 108,458,571 equipment 226105 Training hotel facilities 3,456,483 227102 Medical supplies 842,125,310 2,637,950,889 227103 Vaccines 237,627,400 24,578,228,308 227107 Incineration of expired drugs 48,863,835 Total 13,191,784,890 31,953,258,193 6. Transfers to reporting entities During the 12 months to 30 June 2023, COVID-19 ERP transferred funds to implement COVID-19 vaccination activities as detailed in the table below: ID Receiving Description 12 months to 12 months to Account entity code 30 June 2023 30 June 2022 Frw Frw 267104 Transfers to Central Government institutions - current 4200003002 Ngarama Hospital 35,478,000 21,300,000 6800003001 Masaka Hospital 35,748,000 7,500,000 4800003001 Kaduha Hospital 43,921,300 13,800,000 4000003001 Kibungo Hospital 59,815,500 36,000,000 6400003002 Kinihira Hospital 44,307,300 21,300,000 4600003001 Rwamagana Hospital 63,453,800 19,800,000 5700003001 Kibuye Hospital 42,246,200 25,500,000 6300003001 Ruhengeri Hospital 67,427,200 38,100,000 5600003001 Gisenyi Hospital 52,782,800 32,700,000 4500003002 Gatunda Hospital 36,113,600 12,600,000 4900003001 Kibilizi Hospital 36,504,300 24,300,000 4700003001 Kabutare Hospital 62,250,700 38,100,000 6400003001 Rutongo Hospital 55,625,400 31,800,000 5200003001 Nyanza Hospital 71,341,400 40,200,000 5300003001 Munini Hospital 61,511,200 38,100,000 Audited Financial Statements 25 COVID-19 EMERGENCY RESPONSE PROJECT (COVID-19 ERP) AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023 ID Receiving Description 12 months to 12 months to Account entity code 30 June 2023 30 June 2022 FIrw Frw 6700003001 Muhima Hospital 19,054,300 10,285,500 6500003003 Gatonde District Hospital 28,285,200 17,100,000 6900003001 Kibagabaga Hospital 57,535,000 11,100,000 4500003001 Nyagatare Hospita 119,091,885 17,400,000 5800003001 Kabaya Hospital 28,780,200 17,100,000 6600003002 Ruhango Provincial Hospital 24,399,400 19,200,000 7. Tranfer to susdir units7,00 1,69,0 7000001001 Nyarugenge Distrit Hospital 5400003001 Gihundwe Hospital 40,491,400 20,902,300 6200003001 Byumba Hospital 98,68 1,600 56,100,000 5800003002 Muhororo Hospit 45,204,300 23,400,000 4400003001 Kirehe Hospital 70,4 14,700 44,400,000 4300003002 Rwinkwavu Hospital 39,909,400 21,300,000 6100003001 Butaro Hospital 79,169,800 44,400,000 5900003001 Bushenge Hospital 32,123,800 19,200,000 Gisagara Hospital 15,793,399 Nyabikerike Hospital 15,623,000 108000000 Rwanda Development Board - 63,678,000 (RDB) ______Total ______________1,504,041,284 798,324,900 7. Transfers to subsidiary units During the 12 months to 30 June 2023, COVID-1 9 ERP transferred funds to implement COVID-l19 vaccination activities as detailed in the table below: ID Dsrpon12 months to 12 months to Account. 30 June 2023 30 June 2022 Frw Frw 267302! Transfers to District Hospitals Gahini Hospital 28,285,200 25,543,250 Gakoma Hospital 24,37 1,000 15,000,000 Gitwe Hospital ____ 27,413,600 21,300,000 Kabgayi Hospital 47,856,200 3 8,100,000 Kibogora Hospital -55,684,600 31,800,000 Kigerne Hospital 45,742,000 26,400,000 Kirinda Hospital 28,285,200 17,100,000 Kiziguro Hospital 47,856,200 27,600,000 Mibilizi Hospital 47,856,200 27,600,000 Mugonero Hospital 32,140,200 19,200,000 Murunda Hosita 71,341,400 40,200,000 Nernba Hospital 40,027,800 23,400,000 Nyarnat Hospital -63,5 13,000 36,000,000 Remera-Rukoma Hospital 5,6,0 39 Ruli Hospital -~3651135600 21,900,000 A udited Financial Statements 26 COVID-19 EMERGENCY RESPONSE PROJECT (COVID-19 ERP) AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023 ID Description 12 months to 12 months to Account 30 June 2023 30 June2022 Frw Frw Shyira Hospital 67,427,200 55,619,250 Gihundwe-Nkombo Health Centre - 266,340 Total 722,877,000 460,928,840 8. Social assistance During the 12 months to 30 June 2023, COVID-19 ERP incurred social assistance as detailed in the table below: ID Description 12 months to 12 months to Account 30 June 2023 30 June 2022 Frw Frw 272202 Assistance to vulnerable groups* 1,656,791,897 Total 1,656,791,897 - * Children in malnutrition at different health centres. 9. Other expenses During the 12 months to 30 June 2023, COVID-19 ERP incurred other expenditure as detailed in the table below: ID Description 12 months to 12 months to Account 30 June 2023 30 June 2022 Frw Frw 285113 Grant refund - 4,357,337 289102 Automobile insurance - 121,599,313 Total - 125,956,650 10. Capital expenditure During the year ended 30 June 2023, the project incurred capital expenditure as detailed in the table below: ID Description 12 months to 12 months to Account 30 June 2023 30 June 2022 Frw Frw 343299 Other ICT equipment 44,390,000 F1,57,2 343304 Other specialized equipment *2,938,473,463 1,175,713,569 343305 Laboratory and medical equipment 157,406,868 94,739,972 Total 3,140,270,331 1,686,051,161 * Mechanical ventilation system at VPDP (Vaccines Preventable Diseases Program) at the warehouse and 15 smoke free incinerators. Audited Financial Statements 27 COVID-19 EMERGENCY RESPONSE PROJECT (COVID-19 ERP) AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023 11. Foreign exchange gains and losses During the 12 months to 30 June 2023, COVID-19 ERP received/incurred gains/losses on currency exchange and translations as detailed in the table below: ID Description 12 months to 12 months to Account 30 June 2023 30 June2022 Frw Frw 145111 Gains on currency exchange and translations 436,030,310 23,329,982 221605 Losses on currency exchange and translations (206,987) (46,967,761) Total 435,823,323 (23,637,779) 12. Cash and cash equivalents The bank amounts shown in the table below have been reconciled to the bank statements as at 30 June 2023 and as at 30 June 2022: ID Bank name and Amount in Exchange Balance as atI Balance as Account Number foreign rate 30 June 2023 at currency 30 June 2022 Frw Frw 311401 RBC WB COVID/ EURO 1,265.17 35,944 4,071,439 BNR 1000054646 28.41 311402 RBC COVID 19 USD 1,164.55 1,650,028 1,992,168 ERP GFF- 1416.88 BNR 1000059777 311403 RBC COVID 19 USD 1,164.55 3,885,584,438 ERP 3AF/ 3,336,554.41 BNR 1000079665 Total 3,887,270,410 6,063,607 13. Current accounts payable and tax liabilities The following were accounts payable and tax liabilities as at 30 June 2023: ID Description 12 months to 12 months to Account 30 June 2023 30 June 2022 Frw Frw 412101 Suppliers control account 128,553,607 232,235,796 412105 Returned payments 32,718,058 6,321,377 412109 Mission payable - 214,331,522 Subtotal 1 161,271,665 452,888,695 412401 VAT payable (Input VAT) 1,440,000 5,556,020 412402 WHT payable - 322,879 Subtotal 2 1,440,000 5,878,899 Grand total (1+2) 162,711,665 458,767,594 Audited Financial Statements 28 COVID-19 EMERGENCY RESPONSE PROJECT (COVID-19 ERP) AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023 14. Prior year adjustments The following is the adjustments made on bank and cash during the year: Date Description Document Debit Credit Frw Frw 512101- Bank and cash adjustment 21/10/20 Refund of excess management G1605001020/0 - 6,340,134 22 fees from RMS Ltd 000059/JV/23 Total 6,340,134 Audited Financial Statements 29