NATIONAL DEPARTMENT OF HEALTH IMPACT HEALTH PROJECT (IDA Trust Fund Grant Number TF0B0956) & (IDA Credit No. 64970) Funded by: World Bank (International Development Association- IDA) FINANCIAL STATEMENTS For the period of Eight months Period Ended 31 December 2022 NATIONAL DEPARTMENT OF HEALTH IMPACT HEALTH PROJECT (IDA Trust Fund Grant Number TFOBO956) & (IDA Credit No. 64970) FINANCIAL STATEMENT FOR THE YEAR ENDING 31 DECEMBER, 2022 CONTENTS Page No. Managements Declaration 2 Statement of Cash Receipts and Payments Consolidated 3 Statement of Cash Receipts and Payments by Project Cost Component 4-5 Statement of Comparison of Actual against Budget Consolidated 6 Statement of Comparison of Actual against Budget by Project Cost Component 7-8 Notes to and forming part of the accounts 9-14 NATIONAL DEPARTMENT OF HEALTH IMPACT HEALTH PROJECT (IDA Trust Fund Grant Number TF0B0956) & (IDA Credit No. 64970) FINANCIAL STATEMENTS FOR THE YEAR ENDING 31 DECEMBER, 2022 MANAGEMENT'S DECLARATION The Project Management Unit (PMU) is responsible for preparation of the Financial Statements for the Impact Health Project. Project Development Objective Improving Access to and Value from Health Services in PNG Financing the Frontlines (IMPACT Health) Project's development objective is "To contribute to increasing the utilization of quality essential health services in Project supported provinces of the Recipient in Papua New Guinea (PNG)". Achievement of the objective will be through activities financed from a Grant and IDA Credit by The World Bank in the amount of US$700,000 and US$30,000,000 respectively in anticipation of implementing the project Improving Access to and Value from Health Services. Management's Declaration In our opinion proper accounting records have been kept for the year ending 31 December, 2022 and the attached financial statements including Source and Use of Funds Statement have been drawn up to reflect the financial performance and position of the Impact Health Project for the year ending 31 December, 2022. For and on behalf of the National Department of Health Dr. Osborne Liko Billy Naidi Project Director & Secretary Project Coordinator National Department of Health IMPACT Health Project D a t e d a t - - - - - - -- - - - - - - - -- - - - - - - - - - - - ---- - - - - - - - - T h is -- - - - - - - - -- - - d a y o f -0 2 4 2 of 14 TW NATIONAL DEPARTMENT OF HEALTH IMPACT HEALTH PROJECT FINANCIAL STATEMENT (IDA Trust Fund Grant NumberTFOBO596) & (IDA Credit No. 64970) STATEMENT OF CASH RECEIPTS AND PAYMENTS CONSOLIDATED FOR THE YEAR ENDING 31 DECEMBER, 2022 Notes 2022 2021 K K RECEIPTS External Assistance TF PPG Funds 5 - (211, 319) IDA Funds 5 1,267,336 1,157,868 Total External Assistance 1,267,336 946,550 GoPNG Counterpart Fundings NDoH EEP Funds 5 10,123,221 2,543,860 NDoH PHA 5- (16, 681) NDoH Initial Deposit 5 Total GoPNG Counterpart Funds 10,123,221 2,527,178 Total External & Counterpart Funds 11,390,557 3,473,728 PAYMENTS Salary & Wages 6(iii) 10,123,221 2,543,860 Techincal Assistance 6(i) 799,606 703,035 Workshop 6(ii) 21,133 20,963 Equipment 6(v) 364 26,529 Motor Vehicle 6(vi) - 247,363 Supplies & Operating Expenses 6(iv) 517,926 39,753 Total Payments 11,462,250 3,581,503 Increase/(Decrease) in Cash (71, 693) (107, 775) Cash at beginning of the year 120,289 228,064 4.8,596 120,289 Cash End of Year (Closing Balance) 2 3 of 14 - NATIONAL DEPARTMENT OF HEALTH IMPACT HEALTH PROJECT FINANCIAL STATEMENT (IDA Trust Fund Grant Number TFOB0596-PG) & (IDA Credit No. 64970) STATEMENT OF CASH RECEIPTS AND PAYMENTS BY PROJECT COST COMPONENT FOR THE YEAR ENDING 31 DECEMBER, 2022 Notes 2022 2021 K K CASH INFLOWS External Assistance TF Trust Funds TF PPG Advance 5 - - 228,000 TF PPG Direct payment 5 TF PPG Reimbursement 5 - - 16,681 Total PPG Funds 211,319 IDA Funds IDA Advance 5- 200,000 IDA Direct Payments 5 338,809 314,590 IDA Replenishment 5 928,527 643,279 Total IDA Funds 1,267,336 1,157,868 GoPNG Counterpart Fundings NDoH EEP Funds 5 10,123,221 2,543,860 NDoH PHA 5 - - 16,681 NDoH Initial Deposit 5 Total GoPNG Counterpart Funds 10,123,221 2,527,178 Total Receipts 11,390,557 3,473,728 CASH OUTFLOWS Projects Components 1. Increase Service Delivery Readiness and Community-based Service Delivery Workshop 6(ii) 21,133 20,963 Total Component 1 21,133 20,963 4 of 14 NATIONAL DEPARTMENT OF HEALTH IMPACT HEALTH PROJECT FINANCIAL STATEMENT (IDA Trust Fund Grant Number TFOB0596-PG) & (IDA Credit No. 64970) STATEMENT OF CASH RECEIPTS AND PAYMENTS BY PROJECT COST COMPONENT FOR THE YEAR ENDING 31 DECEMBER, 2022 Notes 2022 2021 K K 2. Improve Frontline Service Delivery Salaries &Wages 6(iii) 10,123,221 2,543,860 Total Component 2 10,123,221 2,543,860 3. Project Management Technical Assistance 6(i) 799,606 703,035 Equipment 6(v) 364 26,529 Motor Vehicle 6( vi) - 247,363 Supplies & Operating Cost 6(iv) 517,926 39,753 Total Component 3 1,317,896 1,016,680 Total Payments 11,462,250 3,581,503 Increase/(Decrease) in Cash 71,693 107,775 Cash at beginning of the year 120,289 228,064 Cash End of Year (Closing Balance) 48,596 120,289 5 of 14 'K NATIONAL DEPARTMENT OF HEALTH IMPACT HEALTH PROJECT FINANCIAL STATEMENT (IDA Trust Fund Grant Number TFOB0596-PG) & (IDA Credit No. 64970) STATEMENT OF COMPARISON OF BUDGET AND ACTUAL AMOUNTS PLUS OUTSTANDING COMMITMENTS CONSOLIDATED FOR THE 37 MONTHS PERIOD ENDING 31 DECEMBER, 2022 Total Actual & Outstanding Outstanding Total Budget Notes Actual Amount Commitments Commitments Amount Diference K K K K K CASH INFLOWS External Assistance TF PPG Funds 5 401,622 401,622 413,302 11,680 IDA Funds 5 2,425,205 - 2,425,205 - - 2,425,205 Total External Assistance 2,826,827- 2,826,827 413,302 - 2,413,525 GoPNG Counterpart Funds NDOH 5 17,754,800 - 17,754,800 - 17,754,800 NDOHPHA 5 NDOH Initial Deposit 5 100 100 - 100 17,754,900 17,754,900 - - 17,754,900 Total Receipts 20,581,727 - 20,581,727 413,302 - 20,168,425 CASH OUTFLOWS Salary & Wages 6(iii) 17,754,800 - 17,754,800 48,838,028 31,083,228 Techincal Assistance 6(i) 1,718,679 2,262,977 3,981,656 13,622,563 9,640,907 Workshop 6(ii) 209,677 209,677 1,051,022 841,345 Supplies & Operating Expenses 6(iv) 557,715 557,715 8,626,540 8,068,825 Vehic[es 6(vi) 247,363 247,363 1,103,013 855,650 Equipment 6(v) 44,897 1,311 46,208 28,054,579 28,008,371 Contingencies _ - 4,751,360 4,751,360 Total Payments 20,533,131 2,264,288 22,797,419 106,047,105 83,249,686 Net Cash Flow 48,596 2,264,288 - 2215,692 -105,633,803 -103,418,111 6ofl4 NATIONAL DEPARTMENT OF HEALTH IMPACT HEALTH PROJECT FINANCIAL STATEMENT (IDA Trust Fund Grant Number TFOBO596) & (IDA Credit No. 64970) STATEMENT OF COMPARISON OF BUDGET AND ACTUAL AMOUNTS PLUS OUTSTANDING COMMITMENTS BY PROJECT COST COMPONENT FOR THE 37 MONTHS PERIOD ENDING 31 DECEMBER, 2022 Total Actual & Outstanding Outstanding Notes Actual Amount Commritments Commitments Amount Diference CASH INFLOWS K K External Assistance TF PPG Advance 5- 413302 413,302 TF PPG Direct payment 5 223,603 223,501 - 223,601 TF PPG Reimbursement 5 178,021 - 178,021 - 178,021 Total PPG Funds - 401,622 413,302 - 11,680 IDA Advance 5 200,000 200,000 105,638,805 105433,805 IDA Direct Payments 5 653,399 2053,399 10653,399 IDA DA Replenishment 5 1,571,806 1,571,806 - 1,71,806 Total IDA Funds 2,425,205 2,425,205 106,047,107 103,208,600 GOPNG Counterpart Funds NDoH FEP Funds 5 17,754,800 17,754,800 - 17,754800 NDoH PHA 5 NDoH Initial Deposit 5 100 - 100 - - 100 Total GoPNG Counterpart Funds 17,754,800 17,754,800 - - 17,754,800 Total Receipts 20,581,627 20,581,627 106,047,107 85,465,381 CASH OUTFLOWS Component 1 Increase Service Delivery Readiness Tehnica Assistance 6(i) - 6,452464 6,452,464 Workshop O a ni) 209,677 - 209,677 1,051,022 841,345 Supplies & Operating Expennes 6(iav - 5,457,746 5,457,746 Equipment 704,225 704,225 Contingencies 27,984,156 27,984,156 Total Payments Component 209,677 209,677 41,649,613 41,439,936 7 of 14 NATIONAL DEPARTMENT OF HEALTH IMPACT HEALTH PROJECT FINANCIAL STATEMENT (IDA Trust Fund Grant Number TFOB0596) & (IDA Credit No. 64970) STATEMENT OF COMPARISON OF BUDGET AND ACTUAL AMOUNTS PLUS OUTSTANDING COMMITMENTS BY PROJECT COST COMPONENT FOR THE 37 MONTHS PERIOD ENDING 31 DECEMBER, 2022 Total Actual & Outstanding Outstandng Total Budget Notes Actual Amount Commitments Commitments Amount Diference K K K K K 20,581,726.00 20,581,726.00 Component 2 Improve Frontline Service Delivery Salary & Wages 6(iii) 17,754,800 - 17,754,800 48,838,028 31,083,229 Contingencies Total Payments Component2 17,754,800 - 17,754,800 48,838,028 31,083,229 Cnmonent3 Improve Frontline Service Delivery Performance Techncal Assistance 6(i) 1,718,678 2,262,977 3,981,655 7,170,099 3,188,444 Supples & Operating Expenses 6(iv) 575,719 - 575,719 3,168,793 2,593,074 MotorVehicles 6(vi) 247,364 - 247,364 398,789 151,425 Equipment 6(v) 26,893 1,311 28,204 70,423 42,219 Contingencies - - 4,751,362 4,751,362 Total Payments Component3 2,568,654 2,264,288 4,832,942 15,559,466 10,726,524 Total Payments 20,533,131 2,264,288 22,797,419 106,047,107 83,249,689 Net Cash Flow 48,496 - 2,264,288 - 2,215,792 - 2,215,692 8 of 14 IMPACT HEALTH PROJECT FINANCIAL STATEMENT (IDA Trust Fund Grant Number TFOB0596) & (IDA Credit No. 64970) NOTES TO AND FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDING 31 DECEMBER, 2022 1. STATEMENT OF ACCOUNTING POLICIES These financial statements are presented in accordance with the applicable financial reporting standards approved for use in Papua New Guinea by the Accounting Standards Board. Unless otherwise stated, all policies stated herein are adopted in line with acceptable roles and best practices. A. Basis of preparation The financial statements are presented in accordance with the International Public Sector Accounting Standards (IPSAS) cash basis of accounting including applicable financial reporting standards approved for use in PNG by the Accounting Standards Board (ASB). The ASB has approved all current International Accounting Standards as appropriate financial reporting standards. The cash accounting policy has been adopted in the preparation of these accounts. B. Particular Accounting policies The Impact Health (IH) Project is implemented under the overall guidance of the Project Steering Committee (PSC) comprising key Government agencies and sector stakeholders with overall monitoring and coordination by the National Department of Health (NDoH). The Project Management Unit (PMU) is located within the NDoH headquarters in Port Moresby, 2nd Floor, Level2, AOPI Centre. 2. Cash In the Statement of Cash Receipts and Payment, the Closing Cash Balance is represented by: 2022 2021 K K * Cash at designated bank account net of overdrafts. 48,5 120,289 3 Currency Unless otherwise stated monetary units are stated in Papua New Guinea kina. 4 Comparatives Figures for the previous period have been included to facilitate comparison for period which financial statements have been prepared. 9 of 14 IMPACT HEALTH PROJECT FINANCIAL STATEMENT (IDA Trust Fund Grant Number TF0B0596) & (IDA Credit No. 64970) NOTES TO AND FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDING 31 DECEMBER, 2022 (Notes continue) 5 Receipts Funds paid into the designated trust account and reimbursements made by the Financing Agency into the Implementing Agency Bank Account and direct payments to consultants; including Advances to the Designated Trust Account are shown as receipts to reflect the funds flow recorded in the Financing Agency's Client Connection System. 2022 2021 K K External Assistance Receipts from PPG (Initial Advance) - - 228,000 Receipts from PPG (Reimbursement) 16,681 Receipts from PPG (Direct Payments) Total TF PPG Funds - 211,319 IDA Funds Receipts from IDA (Initial Advance) - 200,000 Receipts from IDA (Reimbursement) 928,527 643,279 Receipts from IDA (Direct Payments) 338,809 314,590 Total IDA Funds 1,267,336 1,157,869 Total External Assistance 1,267,336 946,549 GoPNG Counterpart Fundings NDoH EEP Funds 10,123,221 2,543,860 NDoH PHA - 16,681 NDoH Initial Deposit Total GoPNG Counterpart Funds 10,123,221 2,527,178 10 of 14 Total Receipts 11,390,557 3,473,728 IMPACT HEALTH PROJECT FINANCIAL STATEMENT (IDA Trust Fund Grant Number TFOB0596) & (IDA Credit No. 64970) NOTES TO AND FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDING 31 DECEMBER, 2022 (Notes continued) 6 Payments (i) Technical Assistance Payments made to consultants for consultancy services provided to the project are supported by monthly invoices submitted to the Project Coordinator. International Consultants are paid via direct payment which is authorized under the financing agreement signed with the World Bank. 2022 2021 K K Payment made to Project Management staff Consultancy Services 460,797 461,581 Payment made to M&E Specialist for Consultancy Services 227,126 154,213 Payment made to Procurement Specialist for Consultancy Services 111,683 8 799,606 Zo3,_35 (ii) Workshop Costs Payments made for community and stakeholder workshops held during the year. 2022 2021 K K Payment made for Workshop costs 11,33 20,963 (iii) Salary & Wages Part of DLI incentivised cost incurred by implementing agencies are recognised as payments which can be reimbursed by Financing Agency once various conditions are met. 2022 2021 K K NDOH staff salary & Wages for sections allowed EEP Expenses 10,123,221 2,543,860 11 of 14 IMPACT HEALTH PROJECT FINANCIAL STATEMENT (IDA Trust Fund Grant Number TFOB0596) & (IDA Credit No. 64970) NOTES TO AND FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDING 31 DECEMBER, 2022 (Notes continue) (iv) Supplies & Operating cost Payments made for PMU operations cost including stationery as well as other operating expenses. 2022 2021 K K Payment made for office operations & Supplies 122,984 11,075 Payment made for communications support 0 6,136 Payment for Project Steering Committee Meetings 52,795 22, 422 Payment for Provincial DLI Visits 314,303 0 Payments for Provincial DLI Visits PMU 27,276 0 Payment made for Audit & Bank fees 568 119 517,9262 3,5 (v) Equipment Payment made for Office equipment 2022 2021 K K Payment made for office equipment 364 26529 (vi) Motor Vehicle Payment made for Motor Vehicles 2022 2021 K K Purchase of Motor Vehicles 0 247,363 12 of 14 r / IMPACT HEALTH PROJECT FINANCIAL STATEMENT (IDA Trust Fund Grant Number TFOB0596) & (IDA Credit No. 64970) NOTES TO AND FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDING 31 DECEMBER, 2022 6 Undrawn External Assistance Impact Health Project is 100% financed by World Bank, through it's International Development Association (IDA) and Trust Fund Project Preparation Grant. Conversion rate used to calculate the undrawn funds into Kina equivalent is 0.2850 at the period ending date. The closing balance at the period ending 31 December 2022 is as follows: Facility Total Total Draw Down Undrawn Draw Down Undrawn Financing Financing (US$) (US$) (PGK) (PGK) (SDR) (US$) Equivalent Equivalent Equivalent TFOB0596 117,378 117,378 0.00 411.852 0.00 IDA 64970 21,800,000 29,012,312 812,878,43 28,199,434 2,862,248 99,293,782 7 Comparison of Actual plus Outstanding Commitments and Budget Amounts The total budget is based on 100% World Bank, IDA financing and as per this conversion to IPSAS format our comparison is based on thirty-seven month period actuals against budget. The project reporting was focused on the project budget which is reflected in the IFRs. Figures for the previous period have been included to facilitate comparisons for the period for which the financial statements have been prepared 8 Reporting Period The Impact Health Project was officially signed on the 19th December, 2019 and hence the thirty- seven months reporting period covers the months from January to December 2022. The Grant financing officially ended in December 2020 as stated in the official Grant Financing Agreement and the IDA Credit Financing facility became effective in December 2020. 13 of 14 IMPACT HEALTH PROJECT FINANCIAL STATEMENT (IDA Trust Fund Grant Number TF0B0596) & (IDA Credit No. 64970) NOTES TO AND FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDING 31 DECEMBER, 2022 9 Fixed Assets No fixed assets were acquired for the project during the financial year 2022. 14 of 14