Please address all correspondence To the Chief Executive Officer File ref: In reply, please quote the file reference GOVERNMENT OF SAMOA MINISTRY OF FINANCE 24 December, 2021 Mrs Maeva Betham Vaai WB Samoa Liaison Officer World Bank Office Apia Dear Mrs. Vaai, RE: IDA V2020 - PROGRAMMATIC PREPARATION ADVANCE AUDITED FINANCIAL ACCOUNTS FOR THE YEAR ENDED 30 JUNE 2021 We submit herewith the following documents relative to the above project for the year ended 30th June 2021, as per Bank's requirement under the Financing Agreement for your perusal and appropriate actions. The attachments are listed as follows; 1. Audit Report and Opinion 2. Audited Financial Statements Kindly note that there were no major issues raised during the audit review, therefore no issues reported in the Management Letter Report for this project. The Samoa Audit Office cover letter is attached for confirmation. Please do not hesitate to contact Peresitene Kirifi and the undersigned (email: Peresitene.Kirifi@mof.gov.ws and Danielle.Lio@mof.gov.ws ) should you have any questions or need more information, otherwise the Bank's acceptance of the audited financial statements will be appreciated. Yours sincerely, (Danielle Li'o) For: ACTING CHIEF EXECUTIVE OFFICER Cc: Ms. Janet Gamarra, Governance Specialist, Financial Management, World Bank Private Bag 1 Apia City Boulevard APIA, SAMOA Website: http.//www.mof gov. ws Central Bank Building Telephone: (685) 34333 E-Mail: mof@mofgov.ws SAMOA Fax: (685) 21312, 24779 EmIl: Info@auit,govws APIA. SAMO Website: www.audit.gov.ws PeeaddresS all orrespondences to the Controlr and Audifor General AUDIT OFFICE 24 December 2021 Leiataua Henry Ah Ching Acting Chief Executive Officer Ministry of Finance CBS Building APIA Attention: Ms. Peresitene Kirifi ACEO Aid Coordination & Debt Management Afioga e, Programmatic Preparation Advance project audit for year ended 30 June 2021 Please find enclosed the signed Audit Opinion and Set of Audited Project Financial Statement for the Programmatic Preparation Advance for the year ended 30th June 2021. Also note for your kind information that there were no major issues raised during the audit review therefore, there are no issues to be reported in a Management Letter Report for this project. I take this time to convey my appreciation to you and your staff for assisting in completing this audit. Should you have any further queries please do not hesitate to contact me on 27-751. Ma lo'u fa'aaloalo lava, Mua'ausi Marshall Maua ASSISTANT CONTROLLER AND AUDITOR GENERAL cc: Honorable Minister - Ministry of Finance Honorable Minister -Audit Office PROGRAMMATIC PREPARATION ADVANCE (PPA) FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2021 PROGRAMMATIC PREPARATION ADVANCE (PPA) TABLE OF CONTENT FOR THE YEAR ENDED 30 JUNE 2021 CONTENTS Page(s) 1. Report of the Auditor 1 2. Certification by Management 2 3. Statement of Receipts and Payments 3 4. Statement of Comparison of Budget and Actual Amounts 4 5. Notes to the Financial Statements 5-7 I-ax: ZffHb 10/. A Emailk info(iiaud1t.9ov.W5 PA.SM '/Cbsitc: www.aucIt.gov.ws the ca-Il.'lIerandA1udi!or Gentral AUDIT OFFICE REPORT OF THE AUDIT OFFICE TO THE MINISTRY OF FINANCE OF THE GOVERNMENT OF SAMOA Report on the Audit of the Financial Statement We have audited the accompanying financial report for the Programmatic Preparation Advance, for the year ended 30th June 2021, which comprises the Statement of Receipts and Payments, Statement of Comparison of Budget and Actual amounts and Notes forming part of the Financial Statements and accompanying supporting schedules. The Consultancy Firm of XSAO Consult Ltd assisted in the audit. The Consultant in charge of the audit resulting in this Independent Auditor's Report is Chartered Accountant (CA), Violet Roebeck-Fasavalu. Audit Opinion In our opinion, the financial report present fairly, in all material respects, the Receipts and Payments of the Programmatic Preparation Advance for the year ended 30th June 2021. Basis for Opinion We conducted our audit in accordance with International Standards on Auditing (ISA). Our responsibilities under those standards are further described in the Auditor's Responsibilities section of our report. We are independent of the Ministry of Finance in accordance with the ethical requirements that are relevant to our audit of financial statements in Samoa, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a reasonable basis for our opinion. Responsibility for the Financial Report The Ministry of Agriculture (MAF), Ministry of Health (MOH), Ministry of Works, Transport and Infrastructure (MWTI) and Ministry of Finance (MoF) as the implementing Agency, supported by the Executing Agency - Ministry of Finance, is responsible for the preparation and fair presentation of the Statement of Receipts and Payments in accordance with the requirements of International Financial Reporting Standards practice in Samoa relevant and with the requirements of the Donor - World Bank. The project is recognized on a cash disbursements basis. On this basis, donor funds are recognized when received and expenditure is recognized when paid rather than when incurred. The Implementing and Executing Agencies are also responsible for monitoring and ensuring all relevant project arrangements are in accordance with the terms and requirements agreed upon with the Donor, and ensure that all relevant program arrangements and activities are aligned with these terms and requirements. They are also responsible for any such internal control it determines as necessary to enable the preparation of financial reports that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express an opinion on the Statement of Receipts and Payments based on our audit. We conducted our audit in accordance with International Standards on Auditing (ISA). Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial reports are free from material misstatements and that funds provided for the program were expended in accordance with the funding agreement with the World Bank. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial reports. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement in the financial reports, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the preparation of the project financial reports in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the project's internal controls. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of judgments made by management, rclA.IA LSAIMG Email: lnfo(taudit.gov.ws/ APIA. SAMO Website: www.audit.gov.ws Please address at? corresponden~gce o the Corntro!er andAudi!or Ger,ral AUDIT OFFICE We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. We have obtained all the information and explanations that we have required, to conclude that management has kept proper accounting records that support and validate the financial information disclosed in the financial report and the funds for the project have been used for purposes of the project in accordance with the requirements of the Agreement by the World Bank. Apia, Samoa Mua'ausi Marshall Maua 24 December 2021 ASSISTANT CONTROLLER AND AUDITOR GENERAL PROGRAMATIC PREPARATION ADVANCE (PPA) CERTIFICATION BY PROJECT'S MANAGEMENT FOR THE YEAR ENDED 30 JUNE 2021 We zertify that the attached financial statements for the Programmatic Preparation Advance (PPA) comprising of the Statement of Receipts and Payments. Statement of Comparison of Budget & Actual Amounts and Notes forming paa of the financial statements for the period from 01 July 2020 to 30 June 2021 (12 Months): a) gives a true and fair view of the matters to which they relate: and b) have been properly drawn up in accordance with the accounting policy described in Note 2 to the financial statements. We are not aware of any circumstances which would render any particulars included in the financial statements to be misleading or inaccurate. We authorise the attached financial statements for issue on .. .. ..../ on behalf of the Management of the Programmatic Preparation Advance. S nature SignJlti Leiataua Heny Ah Ching Peresitene Kiril ACTING CHIEF EXECUTIVE OFFICER ASSISTANT CHIEF EXECUTIVE OFFICER Ministry of Finance Aid Coordination & Debt Management Division Apia, Samoa Ministry of Finance Apia. Samoa Page 2 PROGRAMMATIC PREPARATION ADVANCE (PPA) STATEMENT OF CASH1 RECEIPTS AND PAYMENTS FOR THE YEA R ENDED 30 JUNE 2021 30 JUNE 2021 30 JUNE 2020 Reccipts/ Receipts/ (Piymnents) Payments by (Paymllents) Paynents by Controlled by Ministry of Playments by Controlled by tle Ministrv of Palyments b% the Entity Finance Third Parties Entity Finance Third PartiCs Notes 5TS STS STS STS STS STS RECEIPTS IDA Grant No. V2020 6 226,595 736,380 Government of Saioa (Pre-finiiced) 7 357,506 Reimburseneni of Pre-financed 911 172) (245,139) Other Receipts interest Receiv'ed 8 660 1.960 Total Receipts 227.083 - 493,201 357,506 PAYMENTS Prograinie Activities Enpenditure SCRTP -Advertisenent SAFPROM - JA Consuliancy Services 7 v,7 " , i 83,353 122.575 - 2A Goods 7.i - 17,676 - 3A Trainings 7.i 2,27- - 4A Investment Cosis 7,i 22,338 - Operating cosis 7.iv (12,913) - 12,888 Prograrnme for Results (MOII) - Consultancy Serviccs 7.i - 304,416 - -Goods - Trainings i Workshops/ Meetins 7,iii, 7ii - 121,705 192,643 , Total Payrnets (12,913) - 522.362 357,506 Casi at Beginning of Year 44,428 61,642 - lncrcase/(Decreasc) in Cash 239.995 (29.161) - E1ca-g Fluctuation GainV(Loss) (,3311.947 Casih at End of Year 274,092 44,428 - ns sicitemntil ufrecelpis and pai'nnust be read(/ inl coiiui ionwh the accomllplIying lnte. Page 3 PROGRAMMATIC PREPARATION ADVANCE (PPA) STATEMENT OF COMPARISON OF BUDGET AND ACTUAL AMOUNTS FOR THE YEAR ENDED 30 JUNE 2021 Difference Actual Original Final Budget Lpessed i S TS Amounts Final Budget Budget and Actual 5 5 S S CASH INFLOWS Grant IDA \2020 226.595 12,298,547 12,144,000 12,071,952 Prefinanced Expenditure by GoS - . Reimbursement of Pre-financed (172) 172 Interest Received 660 - - (660) Total Receipts 227,083 12,298,547 12,144,000 12,071,465 CASH OUTFLOW SCRTP - MWTI - 3,074,637 3,036,000 3,074,637 CTSSU - MOF - 4,611,955 4,554,000 4,611,955 SAFPROM - MAF (12,913) 2,562,197 2,530,000 2,575,110 Programme for Results - MO-1 - 2,049,758 2,024,000 2,049,758 Total Payments (12,913) 12,298,547 12,144,000 12,311,460 NET CASH FLOW 239,995 - - (239,995) Page 4 PROGRAMMATIC PREPARATION ADVANCE (PPA) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021 . GENERAL INFORMATION The Government of Samoa has received an 'Advance' from the International Development Association (World Bank) to facilitate the activites related to the preparation of proposed World Bank financed projects. Proposed projects are as follows; * P165782 Samoa Climate Resilient Transport Project * P165782 Centralized Technical Services & Support Unit * P165873 Samoa Agriculture & Fisheries Procictivity & Marketing Project * P164382 Samoa Health Sytems Strengthening Pro grin The Programmatic Preparation Advance (PPA) agreement was signed and effective on the 5 June 2018 and the value of the Advance in USD is 4,800,000.00 in total. A Special Purpose Account for the PPA was established and is governed by the Agreement and is known as the Programmatic Preparation Advance Account. The purpose of the PPA Account is to disburse funds for Projects activities. The PPA is to be implemented in accordance with the principles, structures and responsibilities set out in the Agreement. 2. SUMMARY OF ACCOUNTING POLICIES 2.1 Basis of Preparation They are prepared on the basis of historical Cash Basis IPSAS Financial Reporting Under The Cash Basis of Accounting. The accounting policies have been applied consistently throughout the period. 2.2 Reporting Entity The financial statements are for the Ministry of Finance ("MOF"). 2.3 Payments by Third Parties Third party is the World Batik. Thus no payments have been made in direct payments. 2.4 Reporting Currency The financial statements are presented in Samoan Tala (SATS), in which MoF agrees to present hence all values presented in Samoan Tala have been rounded to the nearest dollar. Transactions in currencies other than USD are translated into USD using the actual exchange rate applied by the Central Bank of Samoa (where the transaction are paid from the Designated Accounts) or at the applicable rate (where the transactions are paid by Third parties) 2.5 CASH Cash in the General Ledger comprise of cash at bank only. Page 5 PROGRAMMATIC PREPARATION ADVANCE (PPA) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021 2.6 Receipts Deposits are received from the World Bank. The amount is based on a request from Government of Samoa through the Ministry of Finance (MOF) for approval and transfer from the World Bank- MOF have access to Client Connection. the website that is used to manage funds and to check on the financial status. 2.7 Payments Payments relate to all expenditure payments made to suppliers for goods and services relating to the PPA. Projects payments are paid from the special account established with CBS. The small purchases of good or services are pre-financed from the GoS account and reimburse from the CBS account. The payments are made in line with the descriptive activities in the Annex - Article 11 of the Agreement. 3. FINANCIAL PERIOD This financial statements is for the year ended 30 June 2021 (12 months). 4. RECLASSIFICATION OF PAYMENTS There were no reclassification of payment within the audited period 5. CASH AT BANK 30 JUNE 30 JINE 2021 2020 Programmatic Preparation Advance S IDA Designated Account No. 06-123 274.092 44,428 Total 274,092 44,428 6. GRANTS Grants from World Bank/IDA V202 Withdrawal Application 4 - 203.571 Withdrawal Application 5 - 26.707 Withdrawal Application 6 - 43,865 Withdrawal Application 7 - 129,830 Withdrawal Application 8 - 40,699 Withdrawal Application 9 - 35,265 Withdrawal Application 10 - 256,443 Withdrawal Application II 226,595 Total 226,595 736,380 7. PAYMENTS 30 JUNE 30 JUNE 2021 2020 S S Pre-financing ENpenditures 71 SAFPRONI - IA Consultancy Services - 122.575 - 2A_Goods - 17,676 - 3A Training - 2,275 - 4A Investment Costs - 2. 338 - Operating Cost . - 164,864 7.ii PforR HEALTH - Training / Workshops / Meetings - 192,643 TOTAL Pre-financing Expenditures - 357,506 Page 6 PROGRANMMATIC PREPARATION ADVANCE IPPA) NOTES TO THE FINA NCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021 ADDITIONAL DISCLOSURES 30 JUNE 30 JUNE CBS Designated Account (D'A) Ex'