eloi e. RESERVE BANK OF MALA WI FINANCIAL SECTOR TECHNICAL AS'St,STA~CE PROJECT (FSTAP) WORLD BANK (INTERNATIONAL DEVELOPMENT ASSOCIATION) CREDIT NUMBER: 48970 MW PROJECT UMBER: Pl22616 REPORT OF THE INDEPENDENT AUDITOR ON THE PROJECT'S Fl A CIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2015 RESERVE BANK OF MALA WI FINANCIAL SECTOR TECHNICAL ASSISTANCE PROJECT (FST AP) WORLD BANK (IDA) CREDIT NO: 48970-MW; PROJECT NUMBER: P122616 FOR THE YEAR ENDED 31 DECEMBER 2015 TABLE OF CONTENTS CONTENTS 1. General Information 1.1 Background 1-3 1.2 Audit Objectives and Scope 4 2. Independent Auditor's Report on Project Financial Statements 5-6 3. Independent Auditor's Report on the Designated Account Statement 7- 8 4. Statement of Sources and Uses of Funds 9 5. Designated Account Activity Statement 10 6. Accounting policies 11 7. Notes to the Project Financial Statements 12 - 13 RESERVE BANK OF MALA WI FINANCIAL SECTOR TECHNICAL ASSISTANCE PROJECT (FST AP) WORLD BANK (IDA) CREDIT NO: 48970-MW; PROJECT NUMBER: P122616 FOR THE YEAR ENDED 31 DECEMBER 2015 1. GENERAL INFORMATION 1.1 Background The Malawi Government received funding from the International Development Association (IDA) of the WpJld Bank to·oe applied towards increasing access to fmance for the currently unbanked, but bankable, population of Malawi through the Financial Sector Technical Assistance Project (FSTAP). ,,. . . ~ The Reserve Bank of Malawi (RBM) is implementing the Financial Sector Technical Assistance Project (FST AP). The project is financed by a credit of USD28 .2 million for a period of six years from December 21 , 2011 to August 31, 2017 obtained by the Malawi Government. The Malawi Government made available the entire USD28.2 million to the Reserve Bank of Malawi on a grant basis through a supplementary agreement that transfers implementation responsibility to the RBM. However, earlier in 2011 , there was a need to have some preparatory activities undertaken before the FST AP Project Implementation Unit (PIU) could be fully functional and it was in view of this need that BESTAP (another World Bank funded project under the Ministry of Trade and Industry) was identified to implement the project preparatory activities from July 2011 to December 2011 . After the completion of project preparation, the implementing entity (Reserve Bank of Malawi) took over the project and started implementing it through a PIU from January 2012 . The project provides the necessary financing for change management in key public sector institutions; primarily the Ministry of Finance and the Reserve Bank of Malawi that already have an established source of recurrent funding. The activities have been identified through extensive economic sector work, policy dialogue with the Government, as well as through consultations with a wide range of stakeholders (including the private sector, civil society and donors) to achieve wider access to fmancial products thereby contributing to economic growth. During the year, the project received a total of USD3 .58 million (2014: USD7.14 million) towards the implementation of project's activities. The IDA credit for project implementation supports five components and funds the following main activities: (i) training and workshops, (ii) short term Consultancy services and (iii) goods, predominantly project vehicles and IT hardware and software systems. Activities supported by the project are aggregated in the five following components: 1. Strengthening fmancial sector regulation and supervision. 2. Financial infrastructure. 3. Financial consumer protection and financial literacy. 4. Ministry of Finance financial sector policy and governance capacity and long term finance . 5. Project implementation support. RESERVE BANK OF MALAWI FINANCIAL SECTOR TECHNICAL ASSISTANCE PROJECT (FST AP) WORLD BANK (IDA) CREDIT NO: 48970-MW; PROJECT NUMBER: P122616 FOR THE YEAR ENDED 31 DECEMBER 2015 1. GENERAL INFORMATION (Continued) 1.1 Background (Continued) Project Financing Table Project Component Project cost IDA (inJJS$m) Financing Financing ,,. ;_ . ~ (in US$m) percentage Strengthening financial sector regulation and supervision 5.32 5.32 100 Financial infrastructure 13 .22 13 .22 100 Financial consumer protection and financial literacy 3.02 3.02 100 Ministry of Finance financial sector policy and governance capacity and long 3.39 3.39 100 term finance Project implementation support 3.26 3.26 100 Total 28.21 28.21 100 2 RESERVE BANK OF MALAWI FINANCIAL SECTOR TECHNICAL ASSISTANCE PROJECT (FSTAP) WORLD BANK (IDA) CREDIT NO: 48970-MW; PROJECT NUMBER: P122616 FOR THE YEAR ENDED 31 DECEMBER 2015 1. GENERAL INFORMATION (Continued) 1.1. FSTAP Project As noted above, the project is expected to run for a period of six years from December 21, 2011 to August 31, 20 17.5lnd the budget for the project is as tabulated below: . Total Budget US$ '="# ' ~ 2012- 2017 1. Financial Sector, Regulation and Supervision Goods 2,800,000 Consultancy Services on legal and regulatory framework 1,670,000 Training and Workshops 845 ,000 5,315,000 2. Financial Infrastructure Goods 8,590,000 Consultancy Services 4,348 ,000 Training and Workshops 280,000 13,218,000 3. Financial Consumer Protection and Financial Literacy Consultancy Services 1,392,000 Training and - Workshops 1,632,000 3 024,000 4 . MOF Financial Sector Policy and Governance Capacity and Long -Term Finance Goods 405,000 Consultancy services 1,553,000 Training and Workshops 1,133 ,250 3,091 250 5. FST AP Implementation Support & Capacity Building Goods 300,000 Consultancy services 2,511,000 Training and workshops 264,000 Operating Costs 491,000 3,566,000 Total Budget 28,214,250 3 RESERVE BANK OF MALA WI FINANCIAL SECTOR TECHNICAL ASSISTANCE PROJECT (FSTAP) WORLD BANK (IDA) CREDIT NO: 48970-MW; PROJECT NUMBER: P122616 FOR THE YEAR ENDED 31 DECEMBER 2015 1. GENERAL INFORMATION (Continued) 1.2 Audit Objectives and Scope Objectives The objective 'Of the audit of the Project Financial Statements (PFS) is to enable the auditor to express a professional opinion on the financial position of the project at the end of each fiscal year, and on funds received and expenditures for the I't:levant accounting period as reported by the PFS, as well as an opinion on the eligibility of claims made through Statement of Expenditures, and on the Statements of Designated Account. The project books of accounts provide the basis for the preparation of the Project Financial Statements (PFS) and are prepared to reflect the fmancial transactions in respect of the project, as maintained by the Financial Sector Technical Assistance Project (FST AP). Scope of services We conducted our audit in accordance with International Standards on Auditing, and included such tests and procedures, as we considered necessary under the circumstances. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the amounts included in the statements of expenditure were used for the intended purpose. We believe that our audit provides a reasonable basis for our opinion. In order to satisfy this requirement, we report specifically on the following:- Whether all World Bank funds have been used in accordance with the conditions of the relevant fmancing agreement, with due attention to economy and efficiency, and only for the purposes for which the financing was provided; Whether goods and services financed have been procured in accordance with the relevant fmancing agreement and in accordance with the Bank' s Guidelines; Whether all necessary supporting documentation, records and accounts have been kept in respect of all project activities, with clear linkages between the books of accounts and reports presented to the World Bank; Whether the Designated Account has been maintained in accordance with the provisions of the relevant financing agreement; and Whether the project fmancial statements have been prepared in accordance with the International Financial Reporting Standards as pronounced by the International Accounting Standards Board (IASB)and as adopted by SOCAM, that they give a true and fair view of the fmancial position of the project at the relevant date and of receipts and expenditures for the year ended on that date. 4 P.O. Box 30364 Public Accountants Deloitte. Capital City Lilongwe 3 Malawi Deloitte House Next to National Library Services Tel :+265 (O) 1 773 699 :+265 (0) 1 773 069 Fax :+265 (0) 1 772 276 Email :lldeloitte@deloitte.co.mw FINANCIAL SECTOR TECHNICAL ASSISTANCE PROJECT (FSTAP) WORLD BANK (INTERNATIONAL DEVELOPMENT ASSQCIATION) \;}illDIT NUMBER: 48970-MW · · PROJECT NUMBER: Pl22616 INDEPENDENT AUDITOR'S REPOR1'.0N l'HE PROJECT FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER2015 We have audited the accompanying Project Financial Statements of the Financial Sector Technical Assistance Project (FST AP), World Bank (IDA) Credit Number: 48970-MW, Project Number P 122616, for the year ended 31 December 2015, as set out on pages 9-13 which include: (a) Statement of Sources and Uses of Funds including Use of Funds by Activity; (b) A summary of the principal accounting policies that have been adopted; and (c) Appropriate notes to the project financial statements (includes a summary of funds received from from the World Bank). Management's Responsibility for the project financial statements Financial Sector Technical Assistance Project (FSTAP) management are responsible for the preparation of the accompanying Project Financial Statements that give a true ad fair view in accordance with Generally Accepted Accounting Principles and for such internal control as management determines is necessary to enable preparation of Project Financial Statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express an opinion on the project fmancial statements based on oui- audit. We conducted our audit in accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the Project Financial Statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the Project Financial Statements. The procedures selected depend on the auditor's judgement, including the assessment of the risks of material misstatement of the Statement of Sources and Uses of Funds, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity' s preparation and fair presentation of the project financial statements 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 entity' s internal control. An audit also includes evaluating appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Project management, as well as evaluating the overall presentation of the Project Financial Statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. 5 Audit • Tax • Consulting • Financial Advisory • AmAmhArnf RESERVE BANK OF MALAWI FINANCIAL SECTOR TECHNICAL ASSISTANCE PROJECT (FSTAP) WORLD BANK (IDA) CREDIT NO: 48970-MW; PROJECT NUMBER: P122616 FOR THE YEAR ENDED 31 DECEMBER 2015 Basis of accounting The accompanying statements are expressed in terms of the historic cost convention applying the cash basis of accounting, where income is recognised when received rather than when earned and expenses are recognised when paid rather than when incurred. Opinion . In our opinion, the project fmailcial statements give a true and fair view of the fmancial position of the Financial Sector Technical Assistance Project (FSTAP)- Worl~ Bank (IDA) Credit/ Number: 48970- MW, Project Number P122616, and of its performance for the yeti ended 31 December 2015, in accordance with Generally Accepted Accounting Principles (GAAP) and that: 1. All World Bank funds have been used in accordance with the conditions of the relevant financing agreement, with due attention to economy and efficiency, and only for the purposes for which the financing was provided; 2. Goods and services fmanced have been procured in accordance with the relevant financing agreement and in accordance with the Bank's Guidelines; 3. All necessary supporting documentation, records and accounts have been kept in respect of all project activities, with clear linkages between the books of accounts and reports presented to the World Bank; 4. Designated Account has been maintained in accordance with the provisions of the relevant fmancing agreement; 5. Interim Financial Reports can be relied upon as a basis for processing withdrawal applications; and 6. The project financial statements have been prepared in accordance with the International Financial Reporting Standards and that they give a true and fair view of the financial position of the project at the relevant date and of receipts and expenditures for the period ended on that.date. Public Accountants Lilongwe, Malawi 31 March2016 6 P.O. Box 30364 Public Accountants Deloitte. Capital City Lilongwe 3 Malawi Deloitte House Next to National Library Services Tel :+265 (0) 1 773 699 :+265 (0) 1 773 069 Fax :+265 (0) 1 772 276 Email :lldeloitte@deloitte.co.mw FINANCIAL SECTOR TECHNICAL ASSISTANCE PROJECT (FSTAP) WORLD BANK (INTERNATIONAL DEVELOPMENT ASSOCIATION) CREDIT NUMBER: 48970-MW PROJECT NUMBER: -~22616 INDEPENDENT AUDITOR'S REPORT ON THE DESIGNATED ACCOUNT We have audited the accompanying Designated Account Activity Statement of Financial Sector Technical Assistance Project (FSTAP), World Bank (IDA) Credit Number: 48970-MW, Project Number P122616, for the year ended 31 December 2015 as set out on page 10. Management's Responsibility for the Designated Account Statement Financial Sector Technical Assistance Project (FSTAP) management are responsible for the preparation of the Financial Statements that give a true and fair view in accordance with Generally Accepted Accounting Principles and for such internal control as management determines is necessary to enable preparation of Designated Account Statement that is free from material misstatement whether due to fraud or error. Auditor's Responsibility Our responsibility is to express an opinion on the Designated Account Statement based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those standards require that we • comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the Designated Account Statement is free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the Designated Account Statement. The procedures selected depend on the auditor's judgement, including the assessment of the risks of material misstatement of the Designated Account Statement, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the Designated Account Statement 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 entity's internal control. An audit also includes evaluating appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Project management, as well as evaluating the overall presentation of the Designated Account Statement. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a reasonable basis for our audit opinion. Basis ofAccounting The accompanying statement is expressed in terms of the historic cost convention applying the cash basis of accounting, where income is recognised when received rather than when earned and expenses are recognised when paid rather than when incurred. Audit • Tax • Consulting • Financial Advisory • 7 A member of RESERVE BANK OF MALA WI FINANCIAL SECTOR TECHNICAL ASSISTANCE PROJECT (FSTAP) WORLD BANK (IDA) CREDIT NO: 48970-MW; PROJECT NUMBER: P122616 FOR THE YEAR ENDED 31 DECEMBER 2015 Opinion In our opinion, the Designated Account Statement gives a true and fair view of the fmancial position of Financial Sector Technical Assistance Project (FST AP) , World Bank (IDA) Credit Number: 48970-MW, Project Number P122616, for the year ended 31 December 2015, in accordance with Generally Accepted Accounting Principles (GAAP) and that: .. 1. All Bank funds have been used in accordance with the conditions of the relevant fmancing agreement, with. due attention to economy and efficiency, and only fg: .the .,rurposes for which the fmancing was provided; 2. Goods and services financed have been procured in accordance with the relevant fmancing agreement and in accordance with the Bank's Guidelines; 3. All necessary supporting documentation, records and accounts have been kept in respect of all project activities, with clear linkages between the books of accounts and reports presented to the World Bank; 4. Designated Account has been maintained in accordance with the provisions of the relevant financing agreement; and 5 The project fmancial statements have been prepared in accordance with the International Financial Reporting Standards and that they give a true and fair view of the fmancial position of the project at the relevant date and of receipts and expenditures for the period ended on that date. Public Accountants Lilongwe, Malawi 31 March2016 8 RESERVE BANK OF MALA WI FINANCIAL SECTOR TECHNICAL ASSISTANCE PROJECT {FST AP) WORLD BANK (IDA) CREDIT NO: 48970-MW; PROJECT NUMBER: Pl22616 FOR THE YEAR ENDED 31 DECEMBER 2015 RESERVE BANK OF MALA WI FINANCIAL SECTOR TECHNICAL ASSISTANCE PROJECT (FSTAP) WORLD BANK (IDA) CREDIT NUMBER: 48970-MW; PROJECT NUMBER: P122616 STATEMENT OF SOURCES AND USES OF FUNDS: FOR THE YEAR ENDED 31 DECEMBER 2015 _, 2015 2015 2014 2014 ' • Period Cumulative Period Cumulative US$ US$ US$ US$ Opening Cash Balances ·=- ~ ~ FST AP Project Operating Accounts 22 451.30 - 62,350.57 - FST AP Designated Account 1 880 174.02 - 2,000,021.07 - ' 1 902 625.32 - 2 062 371.64 - Add: Receipts IDA Funds 3 580 000.00 17 554 715.68 7,140,000.00 13,974,715 .68 3 580 000.00 17 554 715.68 7,140 000.00 13 974 715.68 Cash Available 5 482 625.32 17 554 715.68 9,202 371.64 13 974,715.68 Less: Uses of Funds by Project ComponenUSub Component 1. Financial Sector Regulation and Supervision 978 729.86 3 613 654.60 1,644,819.55 2,634,924.73 2. Financial Infrastructure 1 046 799.11 6 230 729.16 3,926,623.79 5,183,930.06 3. Financial Consumer Protection and Financial Literacy 284 529.74 1 487 460.64 386,400.00 1,202,930.90 4. MOF Financial Sector Policy and Governance Capacity and Long -Term Finance 744 347.32 2 160 313.18 843,624.44 1,41.5,965 .86 5. Capacity Building and Implementation Support 418 404.07 2 052 742.88 498,278.55 1,634,338.82 Total Expenditures 3 472 810.10 15 544 900.45 7,299,746.33 12,072,090.37 Cash available less expenditure 2 009 815.23 2 009 815.23 1,902,625.31 1 902,625.31 Closing Cash Balance FSTAP Project Operating Accounts 185 882.06 185 882.06 22,451.29 22,451.29 FST AP Designated Account 1 823 933.16 1 823 933 .16 1,880,174.02 1,880,174.02 ·"···· .. Total Closin2 Cash Balance 2 009 815.23 2 009 815.23 1,902,625.31 1,902,625.31 The Statement of Sources and Uses of Funds was approved and authorised for issue by the Project Management on 3l .March 20 16 and was signed on its behalf by: Signed By: 9 RESERVE BANK OF MALA WI FINANCIAL SECTOR TECHNICAL ASSISTANCE PROJECT (FST AP) WORLD BANK (IDA) CREDIT NO: 48970-MW; PROJECT NUMBER: P122616 FOR THE YEAR ENDED 31 DECEMBER 2015 RESER VE BANK OF MALAW I FINANCIAL SECTOR TECHNICAL ASSISTANCE PROJECT (FSTAP) WORLD BANK (IDA) CREDIT NUMBER: 48970-MW; PROJECT NUMBER: P122616 DESIGNATED ACCOUNT (DA) ACTIVITY STATEMENT: YEAR ENDED 31 DECEMBER 2015 2015 2014 • : Deposit Bank: Reserve BankofMalawi Account Number: Account Number: Account Name: FST AP Designated Account 001-000034-USD- 001-000034-USD- Currency of DA: United States Dollars ·. ·= - ~ 2036-01 2036-01 PART I US Dollars US Dollars 1 Cumulative advances to end of current reporting period 17 554 715 .68 13,974,715.68 2 Cumulative expenditure to end oflast reporting period 12 072 090.37 4,772,344.04 3 Outstanding advance to be accounted (line 1 minus line 2) 5 482 625.31 9,202,371.64 PART II 4 Opening balance 1 902 625.31 2,062,371.64 5 Add/subtract: Cumulative adjustments (if any) - - 6 Advances from World Bank during reporting period 3 580 000.00 7,140,000.00 7 Add lines 5 and 6 3 580 000.00 7,140,000.00 8 Outstanding advances to be accounted for (add line 4 and line 7) 5 482 625.31 9,202,371.64 Closing SA balance at the end of current reporting period (as of 9 December 31,2015 2 009 815.21 1,902,625.31 - 10 Add/subtract: Cumulative adjustments (if any) - - 11 Expenditures for current reporting period 3 472 810.10 7,299,746.33 12 Add lines 10 and line 11 3 472 810.10 7,299,746.33 13 Add lines 9 and line 12 5 482 625.31 9,202 371.64 14 Difference (if any) (line 8 minus line 13) - - PART III 15 Total forecasted amount to be p_aid by World Bank - - 16 Less: Closing SA balance after adjustments (line 9 plus line 10) 2 009 815.21 1,902,625.31 17 Amount Claimed, not yet credited to the Special Account - - 18 Add lines 16 and 17 2 009 815.21 1 902,625.31 The Designated Account statement was approved and authorised for issue by the Project Management on 31 March 2016 and was signed on its behalfby: Signed By: FSTAP P rojec t Manage r FSTAP Financial Man agement Specialist RESERVE BANK OF MALA WI FINANCIAL SECTOR TECHNICAL ASSISTANCE PROJECT (FSTAP) WORLD BANK (IDA) CREDIT NO: 48970-MW; PROJECT NUMBER: P122616 FOR THE YEAR ENDED 31 DECEMBER 2015 ACCOUNTING POLICIES 1.1 Basis of accounting The Project Financial Statements a~d the Designated Account have been prepared on the basis of cash accounting where income is recognised when received rather than when earned and expenses are recognised when paid rather than when incurred, 4- 1.2 Receipts Included in the receipts are initial deposits into the Designated Account on the basis of the withdrawal applications submitted during the period and all disbursements made directly by the IDA to those suppliers that have either rendered services or have supplied goods to the project. 1.3 Expenditures These represent all expenditure actually incurred through the Designated Account, through the local account in the period under review and all disbursements made directly by the IDA to those suppliers that have either rendered services or have supplied goods to the project. 1.4 Foreign currency translations The opening and closing bank balances for the project are translated to US$ at the conversion rate used when transferring funds from the designated US$ account to local currency on a first in first out basis. Expenditures are also translated to the US$ at the conversion rate of funds transferred from the designated US$ account on a first in first out basis. The transactions and financial position of the project are expressed in United States Dollars . Contributions are received in United States Dollars. Transfers are then made from the United States Dollars Designated Account into local accounts held at the Reserve Bank of Malawi. No exchange gain/loss is made on the funds . 1.5 Capital expenditure items Fixed assets investments and other capital items are recorded at cost (treated as operating expenditures) and classified under the respective project that have made the capital expenditure . An asset register is maintained that provides information on the value, location and identity of all assets acquired. No depreciation or amortization is recognised. 11 RESERVE BANK OF MALA WI FINANCIAL SECTOR TECHNICAL ASSISTANCE PROJECT (FST AP) WORLD BANK (IDA) CREDIT NO: 48970-MW; PROJECT NUMBER: P122616 FOR THE YEAR ENDED 31 DECEMBER 2015 NOTES TO THE PROJECT FINANCIAL STATEMENTS 1. WITHDRAWAL APPLICATIONS (FSTAP FUNDS)- PROCESSED BY IDA RESERVE BANK OF MALA WI FINANCIAL SECTOR TECHNICAL ASSISTANCE PROJECT (FSTAP) IDA CREDIT NUMBER 48970-MW PROJECT NUMBER: P122616 Application Receipt World Bank Withdrawal I Transactions Borrower Beneficiary Amount Amount Paid Account Application IDA CREDIT Number Reference Name Details Applied USD USD Value Date Voucher Number USD 0001 FSTAP PPF 02 FSTAP PPF Withdrawal Application 150,000.00 150,000.00 22/12/2011 SPAC 002 0002 FSTAP PPF 03 FSTAP PPF Withdrawal Application 39,893.63 39,893.63 22/12/2011 SPAC 003 0003 FSTAP PPF 03 FSTAP PPF Withdrawal Application 652.53 652.53 22/12/2011 SPAC 004 0004 FSTAP SPAC 04 FSTAP Direct Payment 53,551.55 53,551 .55 17/02/2012 SPAC 004 0005 FSTAP SPAC 05 FSTAP Withdrawal A_]Jplication 1,387, 198.22 1,387,198.22 07/03/2012 SPAC 005 0008 FST AP SP AC 0008 FSTAP Withdrawal Application 4,244,049 .75 4,244,049.75 19/03/2013 SPAC 0008 0011 FSTAP SPAC 0011 FSTAP Withdrawal Application 959,370.00 959 ,370.00 08 /0~2013 SPAC0011 0012 FSTAP SPAC 0012 FSTAP Withdrawal Application 1,940,000.00 1,940,000.00 17/01 /2014 SPAC 0012 0013 FSTAP SPAC 0013 FSTAP Withdrawal Application 2,450,000.00 2,450,000.00 18/03/2014 SPAC 0013 0014 FSTAP SPAC 0014 FSTAP Withdrawal Application I ,890,000.00 1,890,000.00 15/07/2014 SPAC 0014 0015 FSTAP SPAC 0015 FSTAP Withdrawal Application 860,000.00 860,000.00 17/09/2014 SPAC 0015 0017 FSTAP SPAC 0015 FSTAP Withdrawal Application 2 180 000.00 2 180 000.00 06/03/2016 SPAC 0017 0018 FSTAP SPAC 0015 FSTAP Withdrawal Application 1 400 000 .00 1 400 000.00 16/07/2015 SPAC 0018 Total withdrawn 17 554 715.68 17 554 715.68 Total 28,200 000.00 BALANCE -- 10 645 284.32 12 RESERVE BANK OF MALA WI FINANCIAL SECTOR TECHNICAL ASSISTANCE PROJECT (FST AP) WORLD BANK (IDA) CREDIT NO: 48970-MW; PROJECT NUMBER: P122616 FOR THE YEAR ENDED 31 DECEMBER 2015 NOTES TO THE PROJECT FINANCIAL STATEMENTS (Continued) 2. Economic factors The average of the year-en,q buying and''Selling rates of the foreign currencies most affecting the performance of the project are stated below, together with the increase in the National Consumer Price Index, which represents an official measure. uf inflation. '· .~ Kwacha/US Dollar Middle rate Kwacha/US Dollar - 31 December 2015 664.36 Inflation rate (%) - 31 December 2015 24.9% As at 30 March 2016 the exchange and inflation rates had moved as follows : Kwacha/US Dollar 682.42 Inflation rate(%) - February 2016 23.4% No adjustments arising from the movement in exchange rates and inflation rates after year end have been made in the financial statements. 13