PNG AGRICULTURE COMMERCIALIZATION AND DIVERSIFICATION PROJECT Funded by: World Bank (International Development Association - IDA) Financing Loan No. 6466-PG Government of the Independent State of Papua New Guinea (GoPNG) FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2020 FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 INDEX PAGE NO. Cover Page 1 Contents 2 Director's Statement 3 Statement of Cash Receipts & Payments - By Loan Category/Project Component (Consolidated) 4 Statement of Cash Receipts & Payments - By Loan Category/Project Component (DAL PCU) 5 Statement of Cash Receipts & Payments - By Loan Category/Project Component (COCOA PMU) 6 Statement of Cash Receipts & Payments - By Loan Category/Project Component (COFFEE PMU) 7 Statement of Comparison of Budget & Actuals - By Loan Category/Project Component (Consolidated) 8 Statement of Comparison of Budget & Actuals - By Loan Category/Project Component (DAL PCU) 9 Statement of Comparison of Budget & Actuals - By Loan Category/Project Component (COCOA PMU) 10 Statement of Comparison of Budget & Actuals - By Loan Category/Project Component (COFFEE PMU) 11 Notes to Financial Statements 12-13 2 PNG AGRICULTURE COMMERCIALIZATION AND DIVERSIFICATION PROJECT (IDA, GoPNG) FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st DECEMBER, 2020 PROJECT DIRECTORS' STATEMENT In our opinion the accompanying Financial Statements on Pages Ito 13 present fairly the state of affairs of the Project for the year ended 31st December, 2020 and its results and cashflows for the period then ended. On behalf of the Project Directors in Port Moresby dated the .... . day of 1 .,2021 Mr. ram ink My.Jdhro Apinas Deputy Secretary-Policy, Planning & Coordination Project Coordinator Department of Agriculture & Livestock (DAL) PNG Agriculture Commercialization and Diversification Project (PACD) 3 PNG AGRICULTURE COMMERCIALIZATION AND DIVERSIFICATION PROJECT STATEMENT OF CASH RECEIPTS AND PAYMENTS BY LOAN CATEGORY-CONSOLIDATED FOR THE YEAR ENDED 31 DECEMBER 2020 Notes 2920 2019 Controlled By Controlled By Total Controlled By Controlled By Total Entity Third Party Entity Third Party RECEIPTS IDA 6466 GoPNG 2,000,000.00 - 2,000,00000- 1nterests- Others 4 - - 2,000,000.00 Total Receipts 2.00D00au PAYMENTS IDA Goods & Works Non Consulting Services Consulting Services Operating Cots Traning & Workshops Partnership Grant Under Part 3.1 PartnershipGrantsUndrPart3.2 Emergency Expenditures Under Part 5 Others (IDA) 5 - GOPNG Goods & Works 442,12593 442,125.93 Non ConsultingServices - Consulting Services Operating Costs Trainlng&Workshops Partnershlip Grants Under Part 3.1 - Partnership Grants Under Part 3.2 Emergency Expenditures Under Part 5 Others (GOPNG) 5 442,125.93 - TohdPaymaents 442,125.93 Ircrease / (Decrease) In Cash for the Year Cash at Beginning of Year (Opening Balance) Increase / (Decrease) In Cash for the Year 1,557,874.07 Cash at End of Year (Gosing Balance) 2 1,557,874.07 PNG AGRICULTURE COMMERGALIZATION AND DIVERSIFICATION PROJECT STATEMENTOFCAS4H RECEIPTSAND PAYMENTSBY PROJECTCDOMPONENT-r01NSLIDATED FOR THE YEAR ENDED 31 DECEMBER 2020 Notes 2020 2019 E x Controlled By Controlled By Total Costrollad By Controlled By Total Entity Third Party Entity Third Party RECEIPTS IDA 6466 GoPW5 2,000,000 -00 20000.00 Interests Others -I 2,000,000.00 Total Remapt 2,000AM00 PAYMENTS IDA Intitutional Capacity Bulding-DAL Intitutional Capacity Building-Commodlty Boards Agriculture Feeder Roads - Productive Partnerships-Productivity & PO FormatIon - Productive Partnerships-Aggregation, Value Additlon & Marketing - Project Management and Monitorin & Evaluation Contingency Emergency Response Component Others (IDA) 5 GOPNG IntitutionalCapacityBuilding-DAL 442,125.93 - 442,125.93 Intitutional Capacity Building-Coonmodity Boards Agriculture Feeder Roads Productive Partnerships-Productivity & PO Formation Productive Partnershlps-Aggreg.tion, Value Addition & Marketing Project Management and Monitoring & Evaluation - Contingency Emergency Response Component Others (GOPNG) 5 4 .9 442,125.93 Total Pyetb 442125.93 Inras / (Decease) In Cah for the Year 1_IA7,874.07 Cash at Beginning of Year (Opening Balance) Increase/ (Decrease) In Cash for the Year 1,557874.07 Cash at End of Year (osIng 0aance) 4J 4 ,,,,. PNG AGRICULTURE COMMERCIALIZATION AND DIVERSIFICATION PROJECT STATEMENT OF CASH RECEIPIS AND PAYMENTS By LOAN CATEGORY-DAL PCU FOR THE YEAR ENDED 31 DECEMBRER Notes 2020 2019 K 0 Controlled By Controlled By Total Controlled By Controlled By Total Entity Third Party Entity Third Party RECEIPTS IDA 6466 GoPNG 2 000,000.00 2,000,000 00 Interests Others 2.000.000 00 Total Recupt, 2,000,000.00 PAYMENTS IDA Goods & Works Non Consulting Services ConsultingServIces Operating Costs Training & Workshops Partnership Grunts Under Part 3.1 Partnership Grants Under Part 3 2 Emergency Expendltures Under Part 5 Others (IDA) GOPNG Goods & Works 442.125,93 442,12593 Non Consulting Services Consulting Services Operating Casts Training & Workshops Partnership Grants Under Part 3.1 9srvi-li,rann Under Ta r, 12 Emergency Expenditures Under Part 5 Others (GOPNG) 442,125.93 TotalPapments 442,125.93 Increase / (Oerase) In Cash for the Year 1.517,874.07 Cash at Beginning of Year (Opening Balance) Increase / (Decrease) in Cash for the Year 1,557,874.07 Cash at End of Year (dosing Balance) 1,517J74.07 PNG AGRICULTURE COMMERCIALIZATION AND DIVERSIFICATION PROJECT STATEMENT OF CASH RECEIPTS AND PAYMENTS BY PROJECT COMPONENT-DAL PCU FOR THZ YEAR ENDED 31 DECEMBHER 2020 Notes 2020 2019 K 51 Controlled By Controlled By Total Controlled By Cntrolled By Total Entity Third Party Entity Third Party RECEIPTS IDA 6466 GoPNG 2,0D0,EUD 00 2,000,000 00 Interestn Others 2,000,000.00 Total Recalpts 2,001000.00 PAYMENTS IDA Intltutional Capacity Building-DAL Intiutional Capacity BuIldIng-Commodlty Boards Agriculture Feeder Roads Productive Partnerships-Productivity & PO Formation Productive Partnershlips-Aggregatlon, Value Addition & Marketing Project Management and Monitoring & Evaluation Contingency Emergency Response Component Others (IDA) GOPma Infitutonal Capacity Building-DAL 442,12593 442,125.93 Intturtlonal Capacity Building-Commodity Boards Agriculture Feeder Roads Productive Partnershlps-Productivity & PO Formation - Productive Partnerships-Aggregaton, Value Addition & Marketing Project Management and Monitoring & Evaluatlon Contingency Emergency Response Component Others (GOPNG) 442,125.93 Toa Paymnents 442,125,93 Increas / (Decrease) In Cash for the Year Cash at Beginning otlYear (Opening Balance) Incrent / (Decrease) In Cash for the Year 1,557,874.07 Cash at End of Year (Cosing Balance) 5 PNG AGRICULTURE COMMERCIALIZATION AND DIVERSIFICATION PROJECT STATEMENT OF CASH RECEIPTS AND PAYMENTS BY LOAN CATEGORY-COCOAPMU FOR THE YEAR ENDED 31 DECEMBER 2020 Nots 2020 2019 A K Controlled By Controlled By Total Controlled By Cotrollad By Total Entity Third Party Entity Thid Party RECEIPTS IDA 8465 GoPNG- iDeets- Others- Taslu cifalpts PAYMENTS IDA Goods & Works Non Consulting Services Consulting5eorvics Operating Costs Training & Workshops Partnership Grants Under Part 3.1 Partnership Grants Under Part 3.2 Emergency Expenditures Under Part 5 Others (IDA) GOPNG Goods & Works Non ConsultingSrvics ConsulingSoeIces Operating Costs Training & Workshops Partnership Grants Under Part 3.1 Psrrrh", Grr Unde, Part- Emergency Expenditures Under PartS Others (GOPNG) TotloPmens lncrease / (Dscreass) in Cash forth. Yar CashatBeginningofYear(OpenlngBalance) Increase / (Decrese) in Cash for the Year Cash at End of fear (ssing Batance) PNG AGRICULTURE COMMERCIALIZATION AND DIVERSIFICATION PROJECT STATEMENT OF CASH RECEIPTS AND PAYMENTS BY PROJECT COMPONENT-COCOA PMU FOR THE YEAR ENDED 31 DECMBER 2020 Notes 2020 2019 Controlld By Controlled Bp Total Controlled By Controlled By Total Entity ThirdParty Entity Third Party RECEIPTS IDA 486 GoPAG Interests Total Remips PAYMENTS IDA Intitutional Capacity Buliding-DAL Intiutioal Capacity BuIding-Commodity Boards Agriculture Feeder Roads Productive Pertnerships-Productivity S PO Formation Productive Partnerships-Aregalion, Value Addition & Marketing ProjectManagementandMonitoring&Evluation ContIngency Emergency Response Component Others (IDA) Intltutional Capacity Building-DAL intitutional Capacity Building-Commodity Boards Agrilctre Feeder Roads Productive Prtnerships-Producthity & POFormation Productive Partnerships-Aggregtion, Value Addition & Marketlng ProjectManagementand Monitoring &Etaluation Contingency Emergency Response Component Others (GOPNG) TotdiPaymenats increase I (Decrease) In cash for the Year Cash at Beginning ofYear (Opening Belance) Increase/ (Decrease) in Cash for the Year Cash at End of Year (osing Balance) 0 PNG AGRICULTURE COMMERCIALIZATION AND DIVERSIFICATION PROJECT STATEMENT OF CASH RECEIPTS AND PAYMENTS BY LOAN CATEGORY4COFFEE PMU FOR Th YEAR ENDED 31 DEMMBER WW Notes 200 2019 Controlled By Cerolled By Total Controlled By Controlled By Total Entity Third Party Entity Third Party RECEIPTS IDA 6466 GoPNG lnterests Others Toftl Rreept, PAYMENTS IDA Goods & Works NonConultIngServices Consulting Services OperatingCasts Training & Workshops Partnership Grants Under Part 3.1 Partnership Grants Under Part 3.2 Emergency Expenditures Under Part 5 Others (IDA) GOPNG Goods & Works Non Consulting Services Consulting Services Opeating Costs Training & Workshops Partnership Grants Under Part 3.1 Partnership Grants Under Part 3.2 EmergencyExpenditures Under Part5 Others (GOPNG) Totapaymenas increase / (Decrease) in Cash for the Year Cash at Beginning of Year (Opening Balance) increase / (Derease) in Cash for the Year Cash at End of Year (Closing Balance) PNG AGRICULTURE COMMERCIALIZATION AND DIVERSIFICATION PROIECT STATEMENT OF CASH RECEIPTS AND PAYMENTS By PROJECT COMPONENT-CDFFEE PMU FOR THE YEAR ENDED 31 DECEMBER 2020 Notes 2020 2019 K Controlled By Controried By Total Controlled By Controlled By Total Entity Third Party Ertity Third Party RECEIPTS IDA 6466 lntererts mters Toai r ipb PAYMENTS IDA Intflutional Capacity Bullding-DAL Intutional Capacity Building-Commodity Boards Agriculiture Feeder Roads Productlye Partnerships-Productity & PO Formation ProductiNe Partnershlips-Aggregation, Value Addition & Marketing Project Management and Monitoring & Evaluation Contingency Emergency Response Component Others (IDA) GOPNG intitutional Capacity Bulding-Al. Intitutonal Capadly BuIlding-CommodIty Boards Agriculture Feeder Roads Productive Partnershlips-Productivity & PO Formation Producte Partnerships-Aggregation, Value Addition & Marketing Project Management and Monitoring & Esauatlon Contingency Emergency Response Component Others (GOPNG) Total poyments increase / (Deamasa) in Cash for the Year Cash at Beginning of Year (Opening Balance) Increase / (Decrease) in Cash for the Year Cash at End of Year (Cosing Halance) 7I PNG AGRICULTURE COMMERCIALIZATION AND DIVERSIFICATION PROJECT STATEMENT OF COMPARISON OF BUDGET AND ACTUAL AMOUNTS BY LOAN CATEGORY-CONSOLIDATED FOR THE YEAR ENDED 31 DECEMBER 2020 Notes Actual Amounts Final Budget Original Budget Difference Final (Jan-Dec2020) (Jan-Dec2020) (Jan-Dec2020) BudgetandActuals CASH INFLOWS IDA 6466 - 17,956,600.00 17,956,600 00 17,956,600.00 GoPNG 2,000,000.00 3,200,00000 3,200,006.00 1,200,000,00 interests Others Total Receipts 2000 000 00 21,156A.0G 21.156.600.00 19,156,600.00 CASH OUTFLOWS IDA Goods & Works - 5,360,80000 5,360,800 00 5,360,800.00 Non Consulting Services 421,800.00 421,800.00 421,000.00 Consulting Services 6,450,000 00 6,450,000.00 6,450,000.00 Operating Costs 812,70000 812,700.00 812,700.00 Training & Workshops 338,300.00 338,300.00 33B,300.00 Partnership Grants Under Part 3.1 3,824,000.00 3,824,000-00 3,824,000.00 Partnership Grants Under Part 3.2 749,000.00 749,00000 749,000.00 Emergency EkpRnditjrei Under Part! Others (IDA) GOPNG Goods & Works 442,125.93 2,300,00000 2,300,000.00 1,857,874-07 Non Consulting Services 100,000.00 100,000.00 100,000.00 Consulting Services 100,000.00 100,000.00 100,000.00 Operating Costs 500,000,00 500,000.00 500,000.00 Training & Workshops 200,000.00 200,000.00 200,000.00 Partnership Grants Under Part 3.1 Partnership Grants Under Part 3.2 Emergency Expenditures Under Part 5 Others (GOPNG) Total Payments 4422125093 21,15a,-00f00 241Z56.60020090,714,47407 NET CASH FLOWS 2,357,4.4.07 (1,557,874.07) PNG AGRICULTJRE COMMERCIALIZATION AND DIVERSIFICATION PROJECT STATEMENT OF COMPARISON OF BUDGET AND ACTUAL AMOUNTS BY LOAN CATEGORY-CONSOLIDATED FOR THE YEAR ENDED 31 DECEMBER 2020 Notes Actual Amounts Final Budget Original Budget Difference Final (Jan-Dec2020) (Jan-Dec2020) Jan-Dec2020 BudgetandActuals CASH INFLOWS IDA 466 - 17,956,60000 17,956,600.00 17,956,600.00 GoPNG 2,000,000.00 3,200,000.00 3,200,000,00 1,200,00.00 Interests Others Totel RereIptu 2.00000.000 1.60 1,10, O If,,16,i0(0M CASH OUTFLOWS IDA Intitutional Capacity Building-DAL 222,000.00 222,000.00 222,000.00 Intitutional Capacity Building-Commodity Boards 958,400 00 958,400.00 958,400.00 Agriculture Feeder Roads 5,630,00000 5,630,000.00 5,630,000.00 Productive Partnerships-Productivity & PO Formation 5,055,600.00 5,05,600.00 5,055,600.00 Productive Partnerships-Aggregation, Value Addition & Marketing 749,000.00 749,000.00 749,000.00 Project Management and Monitoring & Evaluation 0,341,600 00 5,341,600.00 5,341,600.00 Contingency Emergency Response Component Others (IDA) GOPNG Intitutional Capacity Building-DAL 442,12093 2,000,000.00 2,000,000.00 1,557,874.07 Intitutional Capacity Buildlng-Commodity Boards 400,000.00 400,000.00 400,000.00 Agriculture Feeder Roads Productive Partnerships-Productivity & PO Formation Productive Partnerships-Aggregation, Value Addition & Marketing Project Management and Monitoring & Evaluation 8OO,000 00 800,000.00 800,000.00 Contingency Emergency Response Component Others (GOPNG) ToldPymcnb 442,12442.3 21.1000ff 2,156,600.00 00,714.474,07 NET CASH FLOWS 1,557,874.07 - l1,557,874.07) PNG AGRICULTURE COMMERCIALIZATION AND DIVERSIFICATION PROJECT STATEMENT OF COMPARISON OF BUDGET AND ACTUAL AMOUNTS BY LOAN CATEGORY-DAL PCU FOR THE YEAR ENDED 31 DECEMBER 2020 Notes Actual Amounts Final Budget Original Budget Difference Final (Jan-Dec2020) (Jan-Dec2020) (Jan-Dec 2020) Budget and Actuals CASH INFLOWS IDA 6466 1,645,000.00 1,645,000.00 1,645,000.00 GoPNG 2,000,000.00 2,000,000.00 2,000,000.00 interests Others Tot Reei pt. 2,000,000.00 3.645.000.00 3.645000.00 1,645.000.00 CASH OUTFLOWS IDA Goods & Works 24,000.00 24,00000 24,00000 Non Consulting Services - 211,800.00 211,800.00 211,00000 Consulting Services - 1,158,000.00 1,158,000.00 1,158,000.00 Operating Costs - 251,200.00 251,200.00 251,200.00 Training & Workshops Partnership Grants Under Part 3.1 Partnership Grants Under Part 3.2 Emergency Expenditures Under Part 5 - Others (IDA) GOPNG Goods & Works 442,12593 2,000,000.00 2,000,000 00 1,557,87407 Non Consulting Services Consulting Services Operating Costs Training & Workshops Partnership Grants Under Part 3.1 Partnership Grants Under Part 3.2 Emergency Expenditures Under Part 5 Others (GOPNG) Total Payrnents 442125.3 3,645,000.00 3.645.000.00 3.202,874.07 NET CASH FLOWS 1.557,1874.07 - (1,ss7,a74o07 PNG AGRICULTURE COMMERCIALIZATION AND DIVERSIFICATION PROJECT STATEMENT OF COMPARISON OF BUDGET AND ACTUAL AMOUNTS BY PROJECT COMPONENTS-DAL PCU FOR THE YEAR ENDED 31 DECEMBER 2020 Notes Actual Amounts Final Budget Original Budget Difference Final (Jan-Dec 2020) (Jan-Dec 2020) (Jan-Dec2020) Budget and Actuals CASH INFLOWS IDA 6466 - 1,645,000.00 1,645,000,00 1,645,000.00 GoPNG 2,000,000.00 2,000,000.00 2,000,000.00 interests Others lnatl Recepf5 2,DD000,0 3,040,000.D 3045000.00 16,q .0 CASH OUTFLOWS IDA Intitutional Capacity Building-DAL - 222,000.00 222,000.00 222,000 00 Intitutional Capacity Building-Commodity Boards Agriculture Feeder Roads Productive Partnerships-Productivity & PO Formation Productive Partnerships-Aggregation, Value Addition & Marketing Project Management and Monitoring & Evaluation 1,423,000.00 1,423,000.00 1,423,000.00 Contingency Emergency Response Component Others (IDA) GOPNG Intitutional Capacity Building-DAL 442,125.93 2,000,000.00 2,000,000.00 1,557,874.07 Intitutional Capacity Building-Commodity Boards Agriculture Feeder Roads Productive Partnerships-Productivity & PO Formation Productive Partnerships-Aggregation, Value Addition & Marketing Project Management and Monitoring & Evaluation Contingency Emergency Response Component Others (GOPNG) Total Pmements 442125.93 3.640,000.00 3,645,000.00 3,202,874.07 NET CASH FLOWS ,557,874.07 (1,557,874.07)E O Ot PNG AGRICULTURE COMMERCIALIZATION AND DIVERSIFICATION PROJECT STATEMENT OF COMPARISON OF BUDGET AND ACIJAL AMOUNTS BY LOAN CATEGORY-COCOA PMU FOR THE YEAR ENDED 31 DECEMBER 2020 K Notes Actual Amounts Final Budget Original Budget Difference Final (Jan-Dec2020) (Ja-Dec2020) (Jan-Dec2020) BudgetandActuals CASH INFLOWS IDA 6466 - 8,521,60000 8,521,600.00 8,521,600 00 GoPNG 600,000.00 600,000.00 600,000.00 interests Others Total Receipt-9,121,00.DD 9,121,600.00 5121tO00 CASH OUTFLOWS IDA Goods & Works - 2,803,400.00 2,803,400-00 2,803,400.00 Non Consulting Services - 105,000.00 105,000.00 105,000.00 Consulting Services - 2,841,400.00 2,841,400.00 2,841,400 00 Operating Costs - 316,00000 316,00000 316,000-00 Training & Workshops - 169,300.00 169,300.00 169,300.00 Partnership Grants Under Part 3 1 - 1,912,000.00 1,912,000.00 1,912,000.00 Partnership Grants Under Part 3,2 - 374,500.00 374,500.00 374,500.00 Emergency Expenditures Under Part 5 - Others (IDA) GOPNG Goods & Works 150,000 00 150,000.00 150,000.00 Non Consulting Services 50,000.00 50,000-00 50,000.00 Consulting Services 50,00000 50,00000 50,000.00 Operating Costs 250,00000 250,000 00 250,006.00 Training & Workshops 100,000.00 100,000 00 100,000.00 Partnership Grants Under Part 3.1 Partnership Grants Under Part 3.2 Emergency Expenditures Under Part 5 Others (GOPNG) Total Payments 9.121.600.00 9.121.600.00 9.121 60000 NET CASH FLOWS PNG AGRICULTURE COMMERCIALIZATION AND DIVERSIFICATION PROJECT STATEMENTOF COMPARISON OF BUDGET AND ACTUAL AMOUNTS BY PROJECT COMPONENTS-COCOA PMU FOR THE YEAR ENDED 31 DECEMBER 2020 K Notes Actual Amounts nal Budget Original Budget Difftrence Final (Jan-Dec 20201 Jan-Dc 2020) (Jan-Dec 2020 Budget and Actuals CASH INFLOWS IDA 6466 - 8,521,600 0O 8,521,600.00 8,521,600.00 GoPNG 600,000.00 600,000 00 600,000.00 Interets Others Total Recelnt 9,121.600.00 9121,600.00 9.12160000 CASH OUTFLOWS IDA Intitutional Capacity Building-DAL Intitutional Capacity Building-Commodity Boards 555,10000 555,100.00 555,100.00 Agriculture Feeder Roads 2,815,000.00 2,815,000.00 2,815,000.00 Productive Partnerships-Productivity & PO Formation 2,695,40000 2,695,400,00 2,695,400.00 Productive Partnerships-Aggregation, Value Addition & Marketing 374,500.00 374,500.00 374,500.00 Project Management and Monitoring & Evaluation 2,081,600.00 2,081,600.00 2,081,600.00 Contingency Emergency Response Component Others (IDA) GOPNG Intitutional Capacity Building-DAL Intitutional Capacity Building-Commodity Boards 200,000.00 200,000.00 200,000.00 Agriculture Feeder Roads Productive Partnerships-Productivity & PO Formation Productive Partnerships-Aggregation, Value Addition & Marketing - Project Management and Monitoring & Evaluation 400,000.00 400,00000 400,000.00 Contingency Emergency Response Component Others (GOPNG) oralPfym-t- 9.121,00.00 1210000 9121,5000 NET CASH FLOWS 10 PNG AGRICULTURE COMMERCIALIZATION AND DIVERSIFICATION PROJECT STATEMENT OF COMPARISON OF BUDGET AND ACTUAL AMOUNTS BY LOAN CATEGORY-COFFEE PMU FOR THE YEAR ENDED 31 DECEMBER 2020 Notes Actual Amounts Final Budget Original Budget Difference Final (Jan-Dec2020) (Jan-Dec2020) (Jan-Dec2020) BudgetandActuals CASH INFLOWS IDA 6466 - 7,790,000.00 7,790,000.00 7,790,000 00 GoPNG - 600,000,10 600,O0.00 600,000.00 Interests Others wInecmips - A 1-4,00 i,390,00000 B,390.000,00 CASH OUTFLOWS IDA Goods & Works 2,533,400.00 2,533,400.00 2,533,400.00 Non Consulting Services 105,000.00 105,000.00 105,00000 Consulting Services 2,450,600,00 2,450,600.00 2,450,600.00 Operating Costs 245,50000 245,500.00 245,50000 Training & Workshops - 169,000.00 169,000.00 169,000.00 Partnership Grants Under Part 3.1 - 1,912,000.00 1,912,000 00 1,912,000 00 Partnership Grants Under Part 3.2 374,500.00 374,500.00 374,50000 Emergency Expenditures Under Part 5 Others (IDA) GOPNG Goods & Works 150,000.00 150,00000 150,000.00 Non Consulting Services 50,000.00 S0,000,00 50,000.00 Consulting Services - 50,00000 50,000.00 50,00000 Operating Costs 250,00000 250,000.00 250,000.00 Training & Workshops - 100,000.00 100,000.00 100,000.00 Partnership Grants Under Part 3.1 Partnership Grants Under Part 3.2 Emrq -ncy Ependitures Under Prt 5 Others (GOPNG) Total Payments &,390,00000 8 390000.00 .000.00 NET CASH FLOWS PNG AGRICULTURE COMMERCIALIZATION AND DIVERSIFICATION PROJECT STATEMENTOF COMPARISON OF BUDGET AND ACTUAL AMOUNTS BY PROJECT COMPONENTS-COFFEE PMU FOR THE YEAR ENDED 31 DECEMBER 2020 K Notes Actual Amounts FInal Budget Original Budget Difference Final (Jan-Dec2020) (Jan-Dec2020) IJan-Dec2020) BudgetandActuals CASH INFLOWS IDA 6466 - 7,790,000.00 7,790,000,00 7,790,000.00 GoPNG 600,000.00 600,000.00 600,000.00 Interests Others Totul peceipt 0,303000f 813,0 00000 t9Oa 0. 00 CASH OUTFLOWS IDA IntItutional Capacity Building-DAL Intitutional Capacity BuildIng-Commodity Boards - 403,300.00 403,30000 403,300.00 Agriculture Feeder Roads - 2,815,000.00 2,815,000 00 2,015,000.00 Productive Partnerships-Productivity & PO Formation - 2,360,200.00 2,360,200.00 2,360,200,00 Productive Partnerships-Aggregation, Value Addition & Marketing 374,500.00 374,500.00 374,S00.00 Project Management and Monitoring & Evaluation 1,837,000,00 1,837,000.0 1,837,000.00 Contingency Emergency Response Component Others (IDA) GOPNG Intitutional Capacity Building-DAL Intitutional Capacity Building-Commodity Boards 200,000,00 200,000,00 200,000.00 Agriculture Feeder Roads Productive Partnerships-Productivity & PO Formation Productive Partnerships-Aggregation, Value Addition & Marketing Project Management and Monitoring & Evaluation 400,00.0 400,000.00 400,000.00 Contingency Emergency Response Component Others (GOPNG) T.M1 CAS- FL OW.100S.00S NET CASH FLOWS PNG AGRICULTURE COMMERCIALIZATION AND DIVERSIFICATION PROJECT (PACD) IDA 6466 AND GoPNG NOTES TO AND FORMING PARTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 ACCOUNTING POLICIES Stated hereunder are the significant accounting policies and practices adopted by the Project in preparing its financial statements for the year ended 31 December 2020. a) Basis of Preparation These financial statements are presented in accordance with the International Public Sector Accounting Standards (IPSAS) cash accounting system 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. Furthermore the World Bank has recommended all Bank funded Projects to comply with the IPSAS format for developing Annual Financial Statements for audit. b) Reporting Entity PACD is implemented under the overall guidance of the Project Steering Committee (PSC) comprising of key Government agencies and sector stakeholders with overall monitoring and coordination by the National Department of Agriculture & Livestock (DAL). The Project Coordination Unit (DAL PCU) is located within the DAL headquarters in Port Moresby. The Cocoa Project Management Unit (Cocoa PMU) is located within the Cocoa Board of PNG in Kokopo, ENBP and the Coffee Project Management Unit (Coffee PMU) is located within the Coffee Industry Corporation in Goroka, EHP. The three units maintain their own financial accounts however the two PMUs sent their financials to PCU for consolidation and reporting to the World Bank and other stakeholders. c) Payments by Third Parties Payments by third parties refers to direct payment paid by World Bank directly to the bank accounts of suppliers of goods and services or contractors, in the case of civil works under agriculture feeder roads component of the PACD Project. Withdrawal Application amounts are also in compliance within the Minimum Application Value threshold allowed under such payment procedures. d) Reporting Currency The reporting currency for this Financial Statements is in Papua New Guinea Kina (PGK). 2 CASH Consolidated cash and equivalent for the year are comprised of the following ITEMS DAL PCU COCOA PMU COFFEE PMU TOTAL World Bank DA - GoPNG T/A* 1,557,874.07 - 1,557,874.07 Petty Cash Others* Total 1,557,874.07 - - 1,557,874.07 *Note that receipt and usage of PACD GOPNG Funding has been facilitated via the DAL PPAP GOPNG Bank Account thus DAL GOPNG Bank Account balance includes PPAP funding. PPAP is under a different Financing Agreement thus will be reported separately. 3 BORROWINGS While the credit financing agreements are loans to the Independent State of Papua New Guinea, and Department of Treasury report this accordingly in the whole of Government accounts, for the purpose of Project financial statements, as the reporting entity is DAL, CB and CIC, and since the financing agreements and subsidiary agreements state that the proceeds of the credits are made available on a non-refundable basis, then are no borrowings of DAL, CB and CIC and no borrowings of the project. 4 OTHER RECEIPTS Other receipts mainly refers to GST refunds from IRC and in some case proceeds of insurance claims received. 5 OTHER PAYMENTS/EXPENDITURES Others payments or expenditures, both IDA and GOPNG in this case refers to payments or expenditures from respective accounts not yet taken up in the normal approved expenditures items as of this reported financial period. 6 FIXED ASSETS REGISTER A Fixed Asset Register is maintained separately as the valuation of assets is not included in the Financial Statement as all assets are expensed at the time of purchase as per the cash basis of accounting system. A Fixed Asset Register is however maintanined for proper records of all Project financed assets. o 12 7 PROJECT DETAILS a) Project Commencing and Closing Dates The PNG Agriculture Commercialization and Diversification Project (PACD) officially commenced in 17 December 2020. The project is planned for five (5) years thus the current Project Closing Date would be 17 December 2025. b) Project Objective and Components The objective of PACD is to facilitate the development of competitive and diversified agriculture value chains for Selected Commodities in Targeted Provinces. The Project consists of the following main components; 1.1 Institutional Capacity Building-DAL 1.2 Institutional Capacity Building-Commodity Boards. 2.0 Agriculture Feeder Roads. 3.1 Productive Partnerships-On Farm & Post Harvest Productivity and Formation of Producer Organizations 3.2 Productive Partnerships-Value Addition and Marketing 4.0 Project Management and Monitoring and Evaluation 5.0 Contingency Emergency Response Component c) Financing Arrangement World Bank administers IDA funding. Two bank accounts (Trust Accounts) will be established through a gazettal trust deed (gazetted on 15th February 2021) at each of the three units- one for World Bank administered funding and one for GOPNG counterpart funding. All accounts will be established with the Kina Bank, Harbourcity,Kokopo & Goroka branches as per Department of Finance approval (28th September 2021). Advances and replenishments of the World Bank administered Trust Accounts will be made by WB and charge its records against the IDA loan account, 100% inclusive of all taxes. The transactions in currencies other than PGK are coverted into PGK using the actual exchange rate applied by Kina Bank (where the transactions are paid from the trust accounts) and World Bank rate for payments directly paid by World Bank. 8 AUTHORISATION DATE The financial statement was authorised for publication on 25 October, 2021 and should be read inconjunction with the audit report. 9 ORIGINAL AND FINAL APPROVED BUDGET AND COMPARISON OF ACTUAL AND BUDGET AMOUNTS Comparison between approved budget and actuals is between 2020 annual budget and 2020 actuals. Original annual budget for 2020 is based on initial budget developed for Project Signing as no implementation as yet, thus original and final budgets are the same. 10 EXTERNAL ASSISTANCE PACD is jointly funded by the World Bank; through its International Development Association (IDA) Credit No.6466 and Government of Papua New Guinea (GOPNG) counterpart funding. Below is the detail of drawdown status of all financing facilities. Facility Total Financing (SDR) Draw Down (SDR) Draw Down (PGK) Undrawn (SDR) IDA 6466 29.100,000.00 - - 29.100.000.00 Facility Total Financing (PGK) Draw Down (PGK) Draw Down (PGK) Undrawn (PGK) GoPNG 2.000.000.00 2,000,000.00 2,000,000.00 13 N