COMMUNITY RESILIENCE TO CLI MATE CHANGE AND DISASTER RISK IN SOLOMON ISLANDS PROJECT (CRISP) TF016614 & TF016425 FINANCIAL STATEMENTS For the Year Ended 31' December 2017 Table of Contents Page (s) Report of the Executing Apency Auditors Report 3 Balance Sheet 4 Statement of Income and Expenditure Notes to and frming parts of the Financial Statements 6-8 MINISTRY-OF-ENVIRONMENT,-CLIMATE-CHANGE,-DISASTER-MANAGEMENT-&-METEOROLOGYI PO-BOX-21,-HONIARA,-80LOMON-ISLANDSI TELEPHiONE:-+677-23031,-fAX:-+677-28054S COMMUNITY RESILIENCE TO CLIMATE CHANGE & DISASTER RISK IN SOLOMON ISLANDS PROJECT (CRISP) TF016614 & TF016425 FINANCIAL STATEMENTS For the Year Ended 31st December 2017 REPORT OF THE EXECUTING AGENCY Under the terms of my contract, I have the mandate from the World Bank and Ministry of Environment, Climate Change, Disaster Management and Meteorology (MECDM), as the Executing Agency, to supervise and manage the funds provided by the Least Developed Countries Fund (LDCF) and the Global Facility for Disaster Reduction & Recovery (GFDRR). The Grant (TF016614 & TF016425) is used to implement resilience activities in Temotu and Guadalcanal Provinces and an additional two Province to be decided later under the Community Resilience to Climate Change and Disaster Risk in Solomon Islands Project (CRISP). I certify that the attached Balance Sheet and Statement of Income and Expenditure which has been prepared under my supervision presents a true and fair view of Affairs of MECDM - CRISP for the year ended 31'T December 2017. Dated at Honiara this day of %f/ E/N 2018. Dr. Melchior Mataki Permanent Secretary Executing Agency Representative Ministry of Environment, Climate Change, Disaster Management & Meteorology 2 Morris Sojnocki CHARTERED AC< ( IANTS Morr-s & Sojnoki Independent Auditor's Report Report on the Finacial Sttements of the linistr.v qf Fstvironment, Cmain 6t Change, Disaster Mattigement and ,Meteorolog (VECD41) - Canur T[.phw3 Resilience to Climate Ciange & Disaster Risk in Solomon Island\ Project YCRISP) - We has e audited the acompan,inu financial statements f the \inis:1r of ns ironmenm l mate Dne Jisaster \lanagement and \leteorognu> (MI(iDM Communits Resilience ti (Imte (ihange & isaster Risk in Slmon slnds rojett( IPss ich comprise Ie halänc sheet as a; 3V December 2CHl and the statemient e n and espend is 11eessar\ to eriahle the r eparstätement that is frec firom material iisstatenient. ssbhetelie Jue lo rad er erL lnuitor's Responsibiliti Our responsi bility is te express an opinion on these financial statemen based on our audit. \We canduLeted our audit in aceerdance with appi laIle Auditinu Standards iti Seleimn islands. Those Standards require that s we camp! ss ih ethical requirements and plan and perform the audit to btain reasonable assurance shether the nancial statetments arer from material misstatement. An audit im olses performing pracedures te eb:ain audi es idence abaut the amount and diselesures in the tinanial stateiets. 1 he procedures seleCted depend of material misstatement of the Ii naneiaj statements, sswhether due to fraud or error. In making those risk assessments. the auditer cinsider, internal contrl 1 rele ant to the etit-s preparation and Jair presentation of the inaneial statementts in order to design audit procedures that are appropriate in the circlnstances. but not tor the purpose of expressin an opinion on the effeti eness of the entits internal contral. An audit also ineludes esaluatinu the appropriateness of aeounting policies used and the reasnabNeness at accounting estimates made hs manaenieti. as xsell as es aluating the o erall presematian «the Jlna ncial stateniments. Ilie audit also int oled esalitating the projeels camp!lance sith the requiremens af the Gram .\ereement dated Ist \pri] D14 heisseen Solomon Islands and International Bank fr Reconstruetion and D)e el pmcnt & International Des elopment Association. We do not. in gis ing this opinion. accept or asume respnsibil tr an> tier pu rpuse or o an> ither person : uhn ths report is shown or n te shose hands it ma coie sas- uslrc expressls aurced hŽ our prior nent in writine. We heles e that the audit es idenee we has e ohtained is suftiient and appropriate to pros de a basis for our audit opinion. Opinion In our opinion: (at the tnancial statemems present thirly. in all material respects. the tinancial position of the MlCI)M CRSP Project as at 31 December 21 1 7 and the results of ts operations for the sear then ended. in accordance ssith the accounting policies set out in nIte I of the fiancial statements. (b) project ftnds prosided by the Word Bank. have, in all material respects. heen used in acerdance wi the orndin o the financing agreement. and in> for the purposes for _hich the> were provided and adequate doeumentation esiP to supprt the expenditure ineurred as detailed in the Staterent f 1ne me and Expenditures. which can be reled on as a basis tor «an disbursement. (el the desi gnated accoutnts ihas e been used and mai ntained in aceordance ssih the prsi si ons o1f tile t1nancing agreeient and eash at bank halanes at 3 l ` December 2017 are crrectls stated. (d) apart irom the ai lure to pro\ i de audited tinancial tatement ts te)he W\orld Bank not later than 6 moenths after the end oif the tinanial sear. sse hase noted no sigtiicam internal control weaknesses er non-compliatice ssith the inancing agreetient termis MIORRS1& SOINIICKI Chartered Accountants Date: fHoniara RY (RE( J SOJNOCKI PARTNE1 R COMMUNITY RESILIENCE TO CLIfMATE CHANGE & DISASTER RISK IN SOLMON ISLANDS PROJECT (CRISP) TF016614 & TF016425 Balance Sheet For the year ended 31st December 2017 2017 2016 SBD SBD Notes TF016614 TF016425 TOTAL TF016614 TF016425 TOTAL Assets Current Assets Cas- at Bank and on Hand 3 5,000 463,459 468 459 143128 143,128 Staff imprests 4 (i) 17,795 17,795 - Other Advances 4 (ii) 3,921 3,921 4,190 4,190 CoMmunity Led-Sub projects 4 (iii) 376,909 376,909 792,218 792,218 Receivables 4 (lv) 553,882 553,882 - Total Current Assets 957,507 463,459 1,420,966 147,318 792,218 939,536 Liabilities Curren t Lobiities Creditors & Accrual 5 894.524 177 709 1,072,233 169,064 523,764 692,828 Total Current Liabilities 894,524 177,709 1,072,233 169,064 523,764 692,828 Net Assets 62,983 285,750 348,733 268,454 246,708 Accumulated Funds Oening Balance 268,454 246 708 CFrent 1ar Splus 17296 140,959 1,442,011 i44 , 4 2,186,335 Closing Accumulated Funds 101,917 285,750 387,667 268,454 246,708 The Balance Sheet is to be read in conjunction with the notes to and forming part of tne accounts on page 6 to 8 Finance Officer Programme Coordinator 4 COMNUNITY RESIUENCE TO CU MATE CHANGE & DISASTER RISK IN SOLOMON tSLANDS PROJECT (CRISP) TF016614 & TF016425 Statenent of Income & Expenditure For the year ended 31st December 2017 2017 2016 5BD 5BD Notes TF016614 TM016425 TOTAL TF016614 TF016425 TOTAL INCOME W4orld Bdrnk - Grjnts Received 2 16532272 , 7ji26 13,38|.998 7-2. 971 4.240,20, 11,480,182 TOTAL INCOME 11,653,272 l 735,726 13,388,998 7,239,973 4,240,209 11,480,182 EXPENSS Adve,rtisig and PiubIfty 96,415 96,415 744924.400 Aujdt F ees 77,500, 77,500 1.15.009 125000 an., Charges 541 - 5,410 1 1 4 213 Coinsrlting Fees 3.190 316,191 CMnurcabeu Mater s 92,639 92,619 165149 Cortracted Services - Wors 219.862 13421 1758,23 Freght 28,9 28,95 S55,249 S,249 .)448 42,448 Grant Asset 12 184,3:0 184,350 639 191 b, 14 1,255.581 Hr 24155 24,055 0 Materdis - Cornmfnity Subr-Projecrts 502 310 502,810 Miscel;enous - CommunIty Projectn 6 567 6,567 Mets arid Ref rshments 4530 45,830 239,155 Meeting Experses 6 211412 21,342 1., 14 Motor Vehil [xperses und Services 49 427 49,4-. 46,66 - 46,66 Offie Expenses 13 1- -49 '23-149 78,792 Rent Expens:e - Oifce 549900 540,00 54,127 42,125 9 1 Reps & Main,erance 7 71 03 7,003 4 474 -tff -xpen,se - Internationa Corsultants 8 3,3513 41 133 57 445 1 727,850 2,302,304 Srff Expenise - Nationi Consulnts 9 2.48300 180,009 1.128,809 1976338 1. 0 171 2,979 509 Telephone & interret 91237 91,237 5 96,205 i :vel Expe, 10 1.754 t754,116 114 ;4 1,26,94 Utilites - Water/Electr y/thers 2,35 2,735 46 -49,62 Venue H re 90 9900 1 - 15,500 Works aps and Sernnars 11 133,48 133,44 24, 24,520 Other MVscellaneous I-perse 14 38,470 3.420 60,19< 60,191 Catering - Workshops & Sens . 221 891 225,891 Latering - Crmmun ty Meetings . ,4 210,040 Unaqu,tled Expens5es - 'Larnrnurinty Sunr s 15 299,636 299,646 TOTAL EXPENDITURE 11,529608 1,718,430 13,248,039 5,797,962 3,495,885 9,293,847 NET SURPLUS 123,663 17,296 140,959 1,442,011 744,324 2,186,335 i rIncome & Lxpenriture StatemenT Sheet,s to ze read in 'onjunction wt 1h notes wt an for rr p,a- :f the accoujnts onl page6 toi 8 5 COMMUNITY RESILIENCE TO CLIMATE CHANGE & DISASTER RISK IN SOLOMON ISLANDS PROJECT (CRISP) TF016614 & TF016425 NOTES TO THE FINANCIAL STATEMENTS for the sear ended 31st December 2017 1 ACCOUNTING POLICIES a Basis of preporuaion The financia statements have been prepared in accordance with generaIly acceptable Accounting Stancards using the Accrual Basis of Accounting, The accountIng policies have been applied consistently throughout the period. b Reporting entity The financia statements are for the Community Resilience to Climate Change & Disaster Risk in solomon islands (CRISP) project, which is funded by the The principal objective of the CRISP project is to: L intergrate climate change adaption and disaster risk reduction across the recipient s sectors ii. Improve climate change adaptation and risk reduction informatron and communcatior iii. Increase the resilence of rural communities to climate change and natural hazards c Reporting currency The financial statements are presented in the Soromon islands currency, the 50omon slands dol ar ISBD). d Recogniton of Revenue Revenue is recognised when cash is received or a withdrawal application is approved for payment by tne Dank wrthin the financial year, although payment is received ii the subsequent year. e Foreign currency tronsocon-s Transactions in foreign currencies are recorded at the exchange rate at the date of the transact on Nonmonetary assets and liabilities denominated in foreign currency are recorded at the exchange rate at the date of the transact on. f Fixed Assets Capital Expenditure is espensed during he year in whicn tne expenditure s made 2 FUNDING Grant Funding was provided by the International Bank for Reconstruction and Development ard te iernationa Development Association (World Bank), acting as implementing agency of the Least Developed Countries Fund iLDCF), and as acministrator of grants provided by arrous Donors under the Global Facility for Disaster Reduction and Recovery (GFDRRr to support Disaster Reouct en and Recovery througn tne r'creasing Reelence to Climate Change and Natural Hazards Project. During the year, Advances from World Bank and reimbursements of epenoitures was recorded. 2017 2016 SBD (SBID) ADVANCES - GRANT INCOME TF016614 TF016425 TOTAL TF016614 TF016425 TOTAL Advance to Designated Account 11 652.952 1A5,726 13,388,u78 Reimbursment of expend tur during report ing period 7 242 618 4,240,209 11.482827 Foreign exchange ga n unpAid nternational fees in December based on year end rt f 2 645j - 2645) Interest Incorme 320 32C Total 11 653,272 1.735,72b 13388,998 7,239,973 4,240,209 11,480,182 3 CASH AT BANKAND ON HAND C:sh Balance with ANZ - Acct# 5196655 - 463,459 463 459 28 138,128 Cash on Hand Petty Cash (CRISP) 5,000 5 OOC 5 0.U 5,000 TOTAL CASH AT BANKAND ON HAND 5,000 463,459 468,459 143,128 - 143,128 4 ADVANCES (I) Staff Imprest Staff Advances PMU 177 95 17,795 - Total 17,795 - 17,795 - (ii) Other Advances Temotu CRISP Acount witn DSP Arct 140-1000373 33921 4 190 Total 3,921 3,921 4,190 - 4,190 (iii) Community Led Sub-Projects Lcngu SIC Account with BSp Acc 171 022 171,022 Babasu SIC Account with BSp - Act 95 ,72 95,782 - - Namaraoni SIC Account with DSP Acct 44,222 44.222 185,200 185,200 TinmirnrA SIC Acinj with ASP - rctit 150,000 150000 Tetupa SIC Account with BSP Acct# - 96,790 96,790 Numbu SIC Account with BP - Acctit - - - 60,000 60,000 Selwyn College SIC Account with DSP - Acct 65.883 65.883 300,228 300,228 Temotu CRISP Account with BSP - Accti - - - Total Community Led Sub-Projects Accounts 376,909 376,909- 792,218 792,218 6 COMMUNITY RESILIENCE TO CLIMATE CHANGE & DISASTER RISK IN SOLOMON ISLANDS PROJECT (CRISP) TF016614 & TF016425 NOTES TO THE FINANCIAL STATEMENTS for the year enced 31st Decem er 2017 2017 2016 SBD (SBD) 4 ADVANCES - Continue TF016614 TF016425 TOTAL TF016614 TF016425 TOTAL (iv) Receivables Fjnds in Transit - CBSI 508,882 08.882 - Rental Bond Deposit 45 000 4000 - - Total Receivables 553,882 553,882 TOTAL ADVANCES, RECEIVABLES & PREPAYMENTS 952,507 - 952,507 4190 792,218 796,408 5 CREDITORS AND ACCRUALS i. Amount Owing to Suppliers & Consultants 38934 - 38,934 53,818 129,395 183 213 ii. Accrued Liabilities (a) Basic Rate payable 1 710 - 1,710 - 1,729 1,729 (b) PAYE Tax payable 270329 270.329 103,569 103,569 (c) Professional With Holding Tax payable 171,532 63 463 234,995 11, 246 63,462 178,708 (d) NPF (7-5%) 15,380 - 15,380 - 14,315 14,315 (e) NPF (5%) 10,419 - 10,419 - 9,544 9,544 (f) Rental With-Holding Tax payable 43.383 43 383 (g) Contracting With-Holding Tax payable - 114,246 114 246 - (h) Retenions Contract 15.143 - 15 143- - ii) Other Accrued Liab lities 327.694 - 327 694 201750 201,750 TOTAL Accruals 894,524 177,709 1,072,233 169,064 523,764 692,828 6 MEETING EXPENSES (a) Meetings 2,707 - 2,707 11.663 - 11663 (b) Meeting - Committee 18 635 - 18.635 1.851 - 3,851 Total 21,342 21,342 13,514 13,514 7 REPAIRS AND MAINTENANCE Repair and Maintenance - Motor Vehicles 702 70,224 33,474 33,474 Repair and Maintenance Furniture and F ttings 879 - 8 Repair and Maintenance Office Equipment 3900 3,900 Repair and Maintenance - Paci an Communication Equipment Total 75,003 - 75,003 33,474 - 33,474 8 STAFF EXPENSE - INTERNATIONAL CONSULTANTS Consultant Fees (Long Term) 984,781 - 984,781 - 703,700 703.700 Consultant Fees (Short Term) 1.614.627 - 1 614 ,627 67,500 733,300 800,800 Accommodation (Short Term) 217,377 - 217-377 95,975 95,975 Living Alowance (Long Term) 195 637 - 196637/ 116,186 115,186 Perdierm Expenses 143,219 - 143 219 39,143 138,875 178,018 Accommodation (Long Term 159.500 - 159,500 208,000 56,000 264,000 Travel and Transport 35 797 35,797 29.459 29,459 Total 3,351,938 3,351,938 459,288 1,727,850 2,187,138 9 STAFF EXPENSE - NATIONAL CONSULTANTS Salaries 2,148,917 180 009 2328,926 1135 321 1,003.171 2.138,492 Holiday Passage expense 204,784 - 204,784 262 724 262,724 Reimbursable Accommodation expense - - 385,000 385 000 NPF Contribution (7.5%1 157,752 - 157,752 151,829 151,829 Staff Sundry expense - - - 20,009 20,009 Perdiem 1.000 1,000 - House Rental 433,830 - 433 830 - Transport 2.517 - 2,517 -- Training Os'ersea expense - 21.455 21455 Total 2,948,8001 180,009 3,128,809 1,976,338 1,003,171 2,979,509 7 COMMUNITY RESILIENCE TO CUMATE CHANGE & DISASTER RISK IN SOLOMON ISLANDS PROJECT (CRISP) TF016614 & TF01642S NOTES TO THE FINANCIAL STATEMENTS for the year endeo 31s, Decemrn 2017 2017 2016 SBD (SBD) TF016614 TF016425 TOTAL TF016614 TF016425 TOTAL 10 TRAVEL EXPENSE Travel Expense - Accommodation 468,620 - 468,620 343,476 343,476 Travel Expense Arfares 109,122 109,122 215,825 - 215,825 Travel Expense - Allowares 336,597 336,597 27 8,82 278,829 Travel Expense - Motor Veicle/Taxi/Boat Hire 747,582 74752 350190 51,497 401.687 Travel Expense Sundry 92,195 92,19 251 25,167 Total 1,754,116 1,754,116 1,213,487 51,497 1,264,984 11 WORKSHOPS AND SEMINAR Workshop and Seminar Sundry expenses 30,561 30,561 24.520 - 24,520 Workshops and Sem nars 102 487 - 102,487 - - - Total 133,048 133,048 24,520 - 24,520 12 GRANT ASSETS Computers/!T 184,350 184,350 175,500 -465 64 641,146 Motor Vehicle 513,935 513,935 Radio Communication Equipment 1-, _ _ 10,5C 100,500 Total 184,350 184,350 689,435 566,146 1,255,581 13 OFFICE SUPPLIES & EXPENSES Office equipment expenses - - 9,200 - 9,200 Office Supplies & Stationere, 61,517 61 517 56,952 56,952 Postage & Courier Services 40 40 Printing & Photocopies 13.559 13,559 1,000 1,000 Printing - Training Material 5430 5430 - - Training Materials 10563 10,563 - Printing of Posters, Books & Brochures 3 080 32,080 21,600 21 600 TOTAL OFFICE SUPPLIES & EXPENSES 123,149 123,149 88,792 88,792 14 MISCELLANEOUS EXPENSE Sundry expense 38,420 38&420 44597 44 597 Subscript on & Membership Fees . -1 1.75 Technica Assistance 13.919 13, 19 Total 38,420 38,420 60,191 60,191 15 UNAQUITTED EXPENSES - COMMUNITY 5UB-PROJECTS SIC Acct / C-RDP - Numbu 60,000 60 000 - SIC Acct / CRISP Longe EC 13,179 - 13179 SIC Acet/C-RDP - Tumorora 101.106 101.106 SIC Acct - Babasu 1.664 1,664 SIC Acct/C RDP - Selwyn CoLieg Gir l Domitory 80.231 80,231 SIC Acct/C-RDP - Tetupa Water Supply 22,606 22,606 SIC ACCt/C-RDP - Namaraon Water Supply 20,850 20,850 Total Unaquitted Expenses - Community Sub-Projects 299,636 299,636 - 8