PARTNERSHIP FOR MARKET READINESS PROJECT Annual Financial Statements for the year ended 28 February 2021 NATIONAL TREASURY PARTNERSHIP FOR MARKET READINESS PROJECT DONOR FUNDED PROJECT - WORLD BANK (March 2017 - Dec 2020) GRANT ALLOCATION ($) US$ 3,8million Project start date: 17-Mar-17 Project End date 31-Dec-20 Financial year 2020/21 Acc no 80332811 Reconstruction and Development Fund 4052368632 Market Readiness Project - NT PMG Account ANNUAL FINANCIAL STATEMENT For the Year Ended 28 February 2021 Name of Contact at National Treasury: Sharlin Hemraj Tel no: 012 315 5875 / 082 908 3734 Email sharlin.hemraj@treasury.gov.za Name of Relevant Auditor Lunika Chartered Accountants and Auditors Incorporated Tel No: 011 465 1767 / 078 380 0980 Email admin@lunika.co.za PARTNERSHIP FOR MARKET READINESS PROJECT Annual Financial Statements for the year ended February 28, 2021 Contents The reports and statements set out below comprise the annual financial statements presented to the management: Page Managements Responsibilities and Approval 2 Managements' Report 3-6 Independent Auditor's Report 7-8 Statement of Financial Position 9 Statement of Comprehensive Income 10 Statement of Changes in Equity 11 Statement of Cash Flows 12 Accounting Policies 13 Notes to the Annual Financial Statements 14 The following supplementary information does not form part of the annual financial statements and is unaudited: Detailed Income Statement 15 Budget vs Actual 16 - 18 Level of assurance These annual financial statements have been audited in compliance with the applicable requirements of the Grant Agreement. 1 PARTNERSHIP FOR MARKET READINESS PROJECT Annual Financial Statements for the year ended February 28, 2020 Managements Responsibilities and Approval The managers of the project are responsible for the maintenance of adequate accounting records and the preparation and integrity of the annual financial statements and related information. The financial statements have been prepared in accordance with the basis of accounting as set out in Note 1 to the financial statements. The managers are also responsible for the systems of internal control. These are designed to provide reasonable but not absolute assurance as to the reliability of the financial statements, and to adequately safeguard, verify and maintain accountability of assets, and to prevent and detect material misstatement and loss. The systems are implemented and monitored by suitably trained personnel with an appropriate segregation of authority and duties. Nothing has come to the attention of the directors to indicate that any material breakdown in the functioning of these controls, procedures and systems has occurred during the year under review. The annual financial statements set out on pages 9 to 14 have been approved on 16 March 2021 and were signed by: Approval of annual financial statements Signed by:Ismail Momoniat Signed at:2021-03-16 17:54:20 +02:00 Reason:Witnessing Ismail Momoniat Ismail Momoniat Deputy Director-General: Tax and Financial Sector Policy Signed by:Chris Axelson Signed at:2021-03-16 14:56:17 +02:00 Reason:Witnessing Chris Axelson Christopher Axelson Chief Director: Economic Tax Analysis 2 PARTNERSHIP FOR MARKET READINESS PROJECT Annual Financial Statements for the year ended February 28, 2021 Managements' Report The managers have pleasure in submitting their report on the annual financial statements of the Partnership for Market Readiness Project (PMR) project the year ended 28 February 2021 to the World Bank. 1. General review The operating results and state of affairs of the PMR are fully set out in the attached financial statements. Full details of the financial position, results of operations and cash flows of the National Treasury for the PMR Project are set out in these annual financial statements. 2. Grant agreement The Partnership for Market Readiness Multi-Donor Trust fund grant agreement was signed between the Republic of South Africa and the International Bank for Reconstruction and Development (World Bank Acting as Administrator of the Partnership for Market Readiness Multi-Donor Trust fund) on 03 March 2017. 3. List of key project personnel and their roles and responsibilities Name Title Role and responsibilities Head of the Tax and 1 Ismail Momoniat Deputy Director-General: Financial Sector Policy Tax and Financial Sector Division responsible for Policy Division Economic Tax Analysis Legal Tax Design Financial Sector Development Financial Services Financial Stability 2 Christopher Axelson Chief Director: Economic Tax Head of the Economic Tax Analysis Analysis Chief Directorate. Responsible for tax policy advice, design and implementation to support government’s revenue goals, maintenance of tax policies and revenue estimation and promote environmental sustainability. 3 Sharlin Hemraj Director: Environmental and Director for Environmental Fuel Taxes and Fuel Tax and PMR project manager and focal point. Responsibilities include programme coordination and implementation in collaboration with the Supply Chain Management, Legal Services, Finance, International Development Cooperation Units, and Office of the Accountant General of the NT. Chair of the Project Steering Committee for the PMR Project. 3 PARTNERSHIP FOR MARKET READINESS PROJECT Annual Financial Statements for the year ended February 28, 2021 Managements' Report 4 Leanne Nation Programme coordination and Responsibilities include administration support administrative support and coordination, preparation of draft contracts, assists with preparation of financial reports, and document management i.e. uploading of procurement and financial documents onto the World Bank STEP and Client Connection systems and maintaining an electronic and manual filing system for the project 5 Gloria Kriel Business Support Manager of Provides general programme Economic Tax Analysis Unit coordination, project administration and financial management support to the project. 4 PARTNERSHIP FOR MARKET READINESS PROJECT Annual Financial Statements for the year ended March 31, 2020 Managements' Report 4. Events after the reporting period In December 2019, a novel strain of coronavirus was reported and has since spread to more than 100 countries, including South Africa. President Cyril Ramaphosa announced and implemented measures to combat the spread of the Covid-19 coronavirus in South Africa including a three-week nationwide lockdown in March 2020 with severe restrictions on travel and movement. Measures were taken to contain the spread of the virus, including travel bans, quarantines, social distancing, working from home and closures of non-essential services, which continued into 2021. This further impacted project implementation and the timeframe for completion of some project activities was reduced from 12 months to 6 months to ensure completion by 30 December 2020 when the PMR project grant agreement came to an end. There is no other material event which occurred after the reporting date and up to the date of these financial statements. 5. Address National Treasury, 240 Madiba Street, Pretoria, South Africa, 0001. 6. Project overview South Africa ratified the Paris Agreement in November 2016 and submitted its Nationally Determined Contribution (NDC) commitment targets to reduce greenhouse gas (GHG) emissions in line with a peak, plateau and decline emissions trajectory where emissions peak from 2020 to 2025, plateau for a ten- year period from 2025 to 2035 and declines from 2036 onwards. To support South Africa’s climate goals, National Treasury embarked on a policy process in 2009 to price GHG emissions through a carbon tax to assist in reducing emissions and ensure that firms and consumers take these costs into account in their production, consumption and investment decisions. In March 2015, the Partnership Assembly, the PMR governing body, allocated a US$5,000,000 grant to South Africa based on its Market Readiness Proposal to support the refinement of the design and implementation of the carbon tax. Following consultations with the World Bank during 2020/21, the PMR project was restructured to adjust the grant amount to US$3,800,000 and the project was extended by six months to end on 31 December 2020. The activities of the PMR project aimed to build on, complement and deepen the work carried out to date, and facilitate implementation of the carbon tax in South Africa. The grant agreement was signed between the National Treasury on behalf of the South African government and the World Bank in March 2017 and the amendments to the grant agreement were approved in June 2020. The PMR supports countries to assess, prepare and implement carbon pricing instruments in order to scale up GHG mitigation. The World Bank, which is the Secretariat of the PMR, administers the recipient executed trust funds. This project is an Investment Project Financing (IPF) financed by a grant from the PMR multi-donor trust fund and funds are channeled to South Africa through a recipient-executed trust fund. The National Treasury (NT) Economic Tax Analysis (ETA) Unit is the implementing agency of the PMR project. The PMR project activities aimed to enhance, complement and deepen the work undertaken by the National Treasury, Department of Environmental Affairs, Forestry and Fisheries and the Department of Mineral Resources and Energy on implementation of the carbon tax. The PMR project comprises four components of work as outlined below: Component 1: Supporting the refinement of the design of the carbon tax through analytical work. Component 2: Strengthening the capacity of the Government to enhance data management and MRV systems. Component 3: Supporting the design of a carbon offset scheme. Component 4: Communication, stakeholder engagement and project administration support. 7. High level Project progress report against the objectives or outcomes The progress made towards the implementation of South Africa’s PMR project activities over the period 1 April 2020 to 28 February 2021 focused on finalisation of procurement for remaining activities, implementation of project activities and closure of the Partnership for Market Readiness project. Five technical activities were concluded during 2020, namely: Modification of the National Atmospheric Emissions Inventory Systems (NAEIS) to develop a greenhouse gas (GHG) emissions reporting module; Assessment of the developed Carbon Offset Administration system (COAS) and options for hosting the offset registry; 5 PARTNERSHIP FOR MARKET READINESS PROJECT Annual Financial Statements for the year ended March 31, 2020 Managements' Report Development of a framework for local carbon offset standards and a guidance manual for project developers; Capacity building within the Clean energy branch of the Department of Mineral Resources and Energy (DMRE) for the administration of the carbon offsets programme; and Enhancement of the Department of Mineral Resources and Energy Central Energy Database to include modalities for the Energy Efficiency Target Monitoring System (EETMS) The activities mainly supported enhancement of the technical infrastructure and institutional capacity of the Department of Environment Forestry and Fisheries (DEFF) and Department of Mineral Resources and Energy (DMRE) for GHG emissions reporting, carbon offset administration and energy efficiency data reporting. To support the implementation of the carbon tax, the NAEIS was modified to include a GHG emissions reporting module to enable companies and other entities to report their annual GHG emissions using an online platform. The developed South African Greenhouse Gas Emissions Reporting System (SAGERS) was implemented in 2020. Companies reported greenhouse gas emissions electronically for the period 1 January to 31 December 2019 using the SAGERS. The NAEIS enabled company and facility level emissions reporting; and provided for the DEFF to register GHG data providers and verify and audit GHG emissions data submitted online by companies and other data providers. The Clean Energy Branch Designated National Authority (DNA) of the DMRE was appointed as the administrator of the carbon offset programme to support implementation of the carbon offset allowance under the carbon tax. A technical assessment of the carbon offset administration system (COAS) was conducted under the PMR project and concluded in October 2020. The key outcomes from the activity are summarized below: A key finding of the initial phase of the study was the need for strengthening the security features of the COAS. The system upgrades were implemented by the DMRE during 2020. A systems linkage report identifying options for future linking of the COAS, South African Revenue Service and Department of Environmental Affairs, Forestry and Fisheries National Atmospheric Emissions Inventory System for greenhouse gas emissions reporting was finalised. An implementation plan to guide the procurement process and an initial draft request for proposal was also completed for possible outsourcing of the offset registry function. In December 2019, a service provider was appointed to develop a framework for evaluating local carbon offset standards and a user manual for carbon offset project developers. The key outcome of the activity was the development and testing of the framework for approval of new eligible domestic carbon offsets standard(s) in addition to the three international standards that are already accepted under South Africa’s carbon offset programme. The framework included criteria for the evaluation of standards, procedures for the implementation of the framework and recommendations for governance and institutional arrangements including a technical review committee. A user manual guiding project developers on the carbon offset programme was also developed. To enhance the capacity of the DMRE Clean Energy Branch with the administration of the carbon offset allowance under the carbon tax, a service provider was appointed to provide technical IT and administrative capacity building support to the department for 5 and half months ending in December 2020. The main outcomes included development of the IT support and maintenance plan, identification of required systems software coding changes and software maintenance through the secondment of experts. Various software and maintenance documents were completed including updates to the standard operating procedure and instruction manual for the COAS. A final study was undertaken to assist with the enhancement of the Department of Mineral Resources and Energy (DMRE) Central Energy Database to include the Energy Efficiency Targets Monitoring System (EETMS). The design options for enhancing the central energy database to include the system for companies and facilities to report energy efficiency measures implemented and the energy efficiency savings data was developed. This was based on the development of the system architecture, and a review of international best practice of similar systems implemented in Canada, India and New Zealand. system was designed for the piloting phase of the new EETMS and an implementation manual, capacity development and strategy plan was also developed to support implementation of the EETMS by the DMRE. Overall, the PMR project activities for the 2020/21 financial year have been satisfactorily implemented. The PMR project contributed to the enhancement of the carbon tax monitoring reporting and verification system. It was integral to the strengthening of the SAGERS GHG emissions reporting system and Carbon Offset Administration System; and capacity building initiatives to support the implementation of the carbon tax. 6 Independent Auditor's Report Independent Auditor's Report To the Managers of Partnership for Market Readiness Project Opinion We have audited the annual financial statements of the Partnership for Market Readiness Project set out on pages 9 to 14, which comprise the statement of financial position as at February 28, 2021, and the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, and notes to the annual financial statements, including a summary of significant accounting policies. In our opinion, the annual financial statements present fairly, in all material respects, the financial position of Partnership for Market Readiness Project as at February 28, 2021, and its financial performance and cash flows for the year then ended in accordance with International Financial Reporting Standard for Small and Medium-sized Entities and the requirements of the Grant Agreement. Basis for opinion We conducted our audit in accordance with International Standards on Auditing. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the annual financial statements section of our report. We are independent of the company in accordance with the sections 290 and 291 of the Independent Regulatory Board for Auditors’ Code of Professional Conduct for Registered Auditors (Revised January 2018), parts 1 and 3 of the Independent Regulatory Board for Auditors’ Code of Professional Conduct for Registered Auditors (Revised November 2018) (together the IRBA Codes) and other independence requirements applicable to performing audits of annual financial statements in South Africa. We have fulfilled our other ethical responsibilities, as applicable, in accordance with the IRBA Codes and in accordance with other ethical requirements applicable to performing audits in South Africa. The IRBA Codes are consistent with the International Ethics Standards Board for Accountants' Code of Ethics for Professional Accountants and the International Ethics Standards Board for Accountants' International Code of Ethics for Professional Accountants (including International Independence Standards) respectively. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Other information The manager is responsible for the other information. The other information comprises the information included in the document titled "Partnership for Market Readiness Project annual financial statements for the year ended March 31, 2020", which includes the Managements' Report as required by the Grant Agreement and the Detailed Income Statement, which we obtained prior to the date of this report. The other information does not include the annual financial statements and our auditor's report thereon. Our opinion on the annual financial statements does not cover the other information and we do not express an audit opinion or any form of assurance conclusion thereon. In connection with our audit of the annual financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the annual financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we have performed on the other information obtained prior to the date of this auditor's report, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Responsibilities of the manager for the Annual Financial Statements The manager is responsible for the preparation and fair presentation of the annual financial statements in accordance with International Financial Reporting Standard for Small and Medium-sized Entities and the requirements of the Grant Agreement, and for such internal control as the manager determines is necessary to enable the preparation of annual financial statements that are free from material misstatement, whether due to fraud or error. In preparing the annual financial statements, the manager is responsible for assessing the company’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 the manager either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. 7 Independent Auditor's Report Auditor's responsibilities for the audit of the Annual Financial Statements Our objectives are to obtain reasonable assurance about whether the annual financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with International Standards on Auditing will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these annual financial statements. As part of an audit in accordance with International Standards on Auditing, we exercise professional judgement and maintain professional scepticism throughout the audit. We also: Identify and assess the risks of material misstatement of the annual financial statements, 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 company’s internal control. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the director. Conclude on the appropriateness of the director'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 company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the annual financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the company to cease to continue as a going concern. Evaluate the overall presentation, structure and content of the annual financial statements, including the disclosures, and whether the annual financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with the manager 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. Samkelo Mxunyelwa CA(SA), RA Engagement Director Lunika Chartered Accountants and Registered Auditors Inc. 1st Floor Muirfied Building Fourways Golf Park Johannesburg 16 March 2021 8 PARTNERSHIP FOR MARKET READINESS PROJECT Annual Financial Statements for the year ended February 28, 2021 Statement of Financial Position as at February 28, 2021 Figures in Rand Notes (s) 2021 2020 Restated Assets Current Assets Cash and cash equivalents 2 973,023 5,979,950 Total Assets 973,023 5,979,950 Equity and Liabilities Equity Retained income 973,023 4,116,834 Current Liabilities - 1,863,116 Vat Payable 5 Total Equity and Liabilities 973,023 5,979,950 9 PARTNERSHIP FOR MARKET READINESS PROJECT Annual Financial Statements for the year ended February 28, 2021 Statement of Comprehensive Income Figures in Rand Notes(s) 2021 2020 Restated Revenue 3 11,744,536 18,414,645 Other income 4 152,337 179,338 Operating expenses (15,040,684) (15,489,512) Operating profit (3 143,811) 3,104,471 Profit for the year (3 143,811) 3,104,471 Other comprehensive income - - Total comprehensive income for the year (3 143,811) 3,104,471 10 PARTNERSHIP FOR MARKET READINESS PROJECT Annual Financial Statements for the year ended February 28, 2021 Statement of Changes in Equity Retained Total equity Figures in Rand income Balance at April 1, 2019 1,012,363 1,012,363 Profit for the year 3,104,471 3,104,471 Other comprehensive income - - Total comprehensive income for the year 3,104,471 3,104,471 Balance at April 1, 2020 (Restated) 4,116,834 4,116,834 Profit for the year (3 143,811) (3 143,811) Other comprehensive income - - Total comprehensive income for the year (3 143,811) (3 143,811) Balance at February 28, 2021 973,023 973,023 Note(s) 11 PARTNERSHIP FOR MARKET READINESS PROJECT Annual Financial Statements for the year ended February 28, 2021 Statement of Cash Flows Figures in Rand 2021 2020 \ Restated Cash flows from operating activities Transfers from World Bank and interest earned 11,896,873 18,414,645 Cash paid to suppliers and employees (16,903,800) (13,447,058) Cash generated from operations (5,006,927) 4,967,587 Net cash from operating activities (5,006,927) 4,967,587 Total cash movement for the year (5,006,927) 4,967,587 Cash at the beginning of the year 5,979,950 1,012,363 Total cash at end of the year 973,023 5,979,950 12 PARTNERSHIP FOR MARKET READINESS PROJECT Annual Financial Statements for the year ended February 28, 2021 Accounting Policies General information The Partnership for Market Readiness Project is located within the Economic Tax Analysis Unit of the National Treasury, domiciled in South Africa. 1. Basis of preparation and summary of significant accounting policies The annual financial statements have been prepared on a going concern basis and in line with the requirements of the Grant Agreement. The annual financial statements have been prepared on the historical cost basis and incorporate the principal accounting policies set out below. They are presented in South African Rands. These accounting policies are consistent with the previous period. 1.1 Revenue Revenue is recognised when it is probable that future economic benefits will flow to the enterprise and these benefits can be measured reliably. Aid Assistance - The funds are received in tranches from the World Bank based on the submitted request. 1.2 Interest The funds remaining in the Reconstruction and Development Fund (RDP) earns interest. The PMR Grant Agreement does not state whether the interest earned can be used. This amount was not reflected in the quarterly IFRs submitted to the World Bank. For transparency purposes, this amount is reflected in this sheet. The World Bank informed the National Treasury in 2020 that interest earned could be utilised for project activities. 1.3 Foreign exchange Foreign currency transactions Transactions in foreign currencies are translated to the functional currency of the entity at rates of exchange ruling at the transaction date. Monetary assets and liabilities denominated in foreign currencies at the reporting date are translated to functional currency at the rates of exchange ruling at that date. The foreign currency gain or loss on monetary items is the difference between amortised cost in the functional currency at the beginning of the period, adjusted for the effective interest and payments during the period. Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are translated to the functional currency at the exchange rate at the date that the fair value was determined. Foreign exchange differences arising on translation are recognised in profit or loss. 1.4 Going concern The project is dependent on funds from the World Bank for it to continue operating. Funds are requested on a biannual basis, or as required, and transferred from the World Bank for planned expenditures for contracted activities. Since 31 December 2019, the spread of COVID-19 has severely impacted many economies around the globe. In many countries, businesses are being forced to cease or limit operations for long or indefinite periods of time. Measures taken to contain the spread of the virus, including travel bans, quarantines, social distancing, and closures of non-essential services have triggered significant disruptions to businesses worldwide, resulting in an economic slowdown. 13 PARTNERSHIP FOR MARKET READINESS PROJECT Annual Financial Statements for the year ended February 28, 2021 Notes to the Annual Financial Statements Figures in Rand 2021 2020 Restated 2. Cash and cash equivalents Cash and cash equivalents consist of: Cash on hand 973,023 5,979,950 Year RDP Account Balance (R ) PMG Account Balance( R) Total ( R) 31 March 2019 942,363 70,000 1,012,363 31 March 2020 5,428,253 551,697 5,979, 950 28 February 2021 764,319 208,704 973,023 3. Revenue Aid assistance 11,744,536 18,414,645 Funds received from the World Bank. The fund are received in tranches from the World Bank based on the submitted request. 4. Other Income Interest Received 152,337 179,338 Interest was earned on funds remaining in the RDP Fund 5. Prior period adjustment During the 2020/21 financial year deliberations were made between the NT and SARS to consider the VAT input which resulted was previously not recognised. This resulted in current liabilities in relation to SARS VAT payments being understated by R1 863 115,84 during the 2019/20 financial year. As a result, the 2019/20 Profit for the year was overstated by the same amount. The effect of the prior year error on the 2019/20 financials is shown below: Statement of Financial Position - 1 863 115,84 Increase in Current Liabilities for 2019/20 Statement of Financial Performance - 1 863 115,84 Increase in expenses 14 PARTNERSHIP FOR MARKET READINESS PROJECT Annual Financial Statements for the year ended February 28, 2021 Detailed Income Statement Figures in Rand 2021 2020 Restated Revenue Aid assistance 11,744,536 18,414,645 Other income Interest Received 152,337 179,338 Operating expenses Bank charges (389) (320) Commission paid (2,299) (1,895) Compensation of employees (0) (756,000) Foreign exchange loss (39,915) (396,878) Management Fees (PIC) (3,825) (4,043) Payment for consulting services (14,994,256) (14,330,376) - (15,040,684) (15,489,512) Profit for the year (3,143,811) 3,104,471 15 The supplementary information presented does not form part of the annual financial statements and is unaudited PARTNERSHIP FOR MARKET READINESS PROJECT Annual Financial Statements for the year ended February 28, 2021 Budget vs Actual Budget vs Actuals 1 April 2020 to 28 February 2021 Component Approved Adjustmen Final Actual Varianc Expenditur Budget ts Budget (US$) e e as % of final budget 200 000 0 200 000 0 -200 0,00 1. Supporting the refinement of the design of 000 the carbon tax through analytical work 2. Strengthen the capacity of government to 2 404 502 0 2 404 502 573 218 -1 831 23,84 enhance data management and monitoring, 284 reporting and verification system 3. Supporting the design of the carbon offset 692 390 0 692 390 481 741 -210 69,58 scheme 649 345 000 0 345 000 39 022 -305 11,31 4. Communication, stakeholder engagement 978 and project administration support 3 641 892 0 3 641 892 1 093 981 -2 547 30,04 Total 911 Budget vs Actuals (Cumulative) 1 April 2018 to 28 February 2021 Component Approved Budget Adjustments Final Budget Actual Varian Expendit (US$) (US$) (US$) (US$) ce ure as % of budget 1. Supporting the refinement of the 200 000 0 200 000 0 -200 0,00 design of the carbon tax through 000 analytical work 2. Strengthen the capacity of 2 404 502 0 2 404 502 1 390 419 -1 014 57,83 government to enhance data 083 management and monitoring, reporting and verification system 3. Supporting the design of the 692 390 0 692 390 499 782 -192 72,18 carbon offset scheme 608 4. Communication, stakeholder 345 000 0 345 000 117 744 -227 34,13 engagement and project 256 administration support 3 641 892 0 3 641 892 2 007 944 -1 633 55,13 Total 948 16 The supplementary information presented does not form part of the annual financial statements and is unaudited DETAILED CUMULATIVE BUDGET VS ACTUALS (1 April 2018 to 28 February 2021) Component Project activity Approv Adjustme Final Actual Variance Expendit References / Notes ed nts Budget expenditu ure as % budget 2019/20 res (US$) of Budget (2018/1 (US$) 9) Estimat ed Cost (US$) 1. 1.1 Assessment 175 000 -175 000 0 0 0 Activity dropped - work Supporting of Existing completed by National the international Treasury refinement of competitiveness the design of measures the carbon 1.2. Analysis of 175 000 -175 000 0 0 0 Activity dropped - study tax through private sector completed using CPLC analytical and funds work international climate finance resources 1.3. Carbon tax 200 000 -200 000 0 0 0 Activity dropped - study modelling completed using other impact studies World Bank funds 1.4. Review of 0 200 000 200 000 -200 000 0 Activity dropped - study GHG emission completed under the intensity NDC Support Facility benchmarks project of the World Bank. 2. Strengthen 2.1. 690 000 0 690 000 270 773 -419 227 39 the capacity Strengthening of the DMRE government Central energy to enhance database data 2.2. NAEIS 80 000 -80 000 0 0 0 Dropped - Budget management CED Exchange allocated to 2.5. Budget and MRV Protocols for 2.5 not adjusted. system Business Case 2.3. Support to 400 000 -400 000 0 0 0 Dropped - Budget Vessels Under allocated to 2.4. Pressure Registry 2.4. 510 000 609 502 1 119 1 119 646 144 100 Additional costs of Modification of 502 US$144 due to bank the NAEIS charges and commission for international payments. 2.5. NAEIS - 280 000 0 280 000 0 -280 000 0 Activity dropped. CED - Institutional Set up design 2.6. Capacity 790 000 -475 000 315 000 0 -315 000 0 Activity dropped. building on Carbon Tax MRV and training 3. 3.1. Manual for 100 000 94 493 194 493 140 209 -54 284 72 Supporting offset scheme the design of users and the carbon framework for offset adopting local scheme standards 3.2. Technical 1 000 -772 103 227 897 198 100 -29 797 87 assessment of 000 the Carbon offset administration system and options for registry hosting 3.3. Providing 150 000 120 000 270 000 161 473 -108 527 60 technical training for DETAILED CUMULATIVE BUDGET VS ACTUALS (1 April 2018 to 28 February 2021) technical and administrative staff and secondment of technical expertise 17 The supplementary information presented does not form part of the annual financial statements and is unaudited PARTNERSHIP FOR MARKET READINESS PROJECT Annual Financial Statements for the period ended March 31, 2020 Budget vs Actual DETAILED CUMULATIVE BUDGET VS ACTUALS (1 April 2018 to 28 February 2021) Component Project activity Approve Adjustmen Final Actual Variance Expenditu References / Notes d budget ts Budget expenditur re as % of (2018/19) 2019/20 es (US$) Budget Estimate (US$) d Cost (US$) 4. 4.1. Design of the 150 000 -150 000 0 - - - Dropped - activity Communicatio communication undertaken in 4.4 n, stakeholder strategy engagement 4.2. 150 000 -150 000 0 - - - Dropped - Funds moved to and project Consultations 4.4. administration facilitator for support stakeholder engagement 4.3. Project 100 000 75 000 175 000 94 711 -80 289 54 coordinator 4.4. 50 000 120 000 170 000 0 -170 000 0 Activity cancelled due to Consultations COVID-19 health crisis. with relevant Virtual stakeholder stakeholders consultation workshops were held. 4.5. Financial 23 032 Financial audits audits Total 5 000 -1 358 108 3 641 2 007 944 -1 633 948 55 000 892 Funds were received in US Dollars. The exchange rates are based on the transaction date. 18 The supplementary information presented does not form part of the annual financial statements and is unaudited