REPUBLIC OF V'ANUATU DEPARTMENT OF CLIMATE CHANGE Ministry of Climate Change and Natural Disasters Private Mail Bag 9054. Port Vila Telephone: (678) 22160. Email: docc@ivanuatu.gov.u; -,- _All correspondents directed to the Director FINANCIAL STATEMENTS FOR THE FOREST CARBON PARTNERSHIP FACILITY (FCPF) - READINESS PREPARATION PROJECT FCPF GRANT No. TF 019203 (VANUATU) For the Year Ended 31 December 2020 REPUBLIC OF VANUATU DEPARTMENT OF CLIMATE CHANGE Ministry of Climate Change and Natural Disasters Private Mail Bag 9054, Port Vila Telephone: (672) 22160; Email: docc@vanuatugo.vu; AII correspondents directed to the Director Table of Contents Auditors Report 2-3 Statement of Cash Receipts and Payments 4 Statement of Comparison of Budget and Actual 5 Statement of Accounting Policies and Notes 1. Accounting Policies 6-7 2. Cash Receipts 7-8 3. Cash Payments 8- 10 4. Cash Balance 10 5. Budget 10- 11 6. Commitments 11 7. Imprests 12 8. Property Plant & Equipment 12 - 13 9. Related Parties 13 10. Creditors 13 11. Authorization Date 13 law arters CHARTERED ACCOUNTANTS AND BUSINESS ADVISERS Independent Auditors' Report to the mem bers of Forest Carbon Partnership Facility (FCPF) - Readiness Preparation Project Grant No. TF 019203 (Vanuatu) The Auditor-General is the auditor of the Forest Carbon Partnership Facility (FCPF) - Readiness Preparation Project. The Auditor-General has appointed Law Partners to Undertake the audit of Forest Carbon Partnership Facility (FCPF) - Readiness Preparation Project pursuant to Section 24(l) of the Expenditure Review and Audit Act [CAP 241]. Audit Opinion We have audited the accompanying financial statements of the Forest Carbon Partnership Facility (FCPF) - Readiness Preparation Project for the financial year ended 31 December 2020 consisting of the statement of cash receipts and payments, statement of comparison of budget and actual amount and accompanying notes set out on pages 4 to 13. In our opinion, tie financial statements for the year ended 31 December 2020 as described above present fairly in all material respects, in accordance with International Public Sector Accounting Standards - Financial Reporting under Cash Basis of Accounting and the projects administration complies with relevant Vanuatu legislation and regulations. Basis for Opinion We have conducted our audit in accordance with International Standards on Auditing. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the Financial Report section of our report. We are independent of the project in accordance with the ethical requirements of the Accounting Professional and Ethical Standards Board's APES 110 Code of Ethics for Professional AccoUntants (the Code) that are relevant to our audit of the financial statements in Vanuatu. We have fulfilled our other ethical responsibilities in accordance with the Code. Key Audit Matters Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. Responsibilities of members for the financial statements The members of the project are responsible for: * the preparation and fair presentation of these financial statements and the information they contain, in accordance with International Public Sector Accounting Standards: Financial Reportiig under Cash Basis of Accounting; * implementing necessary internal controls to enable the preparation of the financial statements that gives a true and fair view and is free from material misstatement, whether due to fraud or error; and * assessing the project's ability to continue as a going concern. This includes disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless they either intend to cease operations or have no realistic alternative but to do so. PRINCPALS maitftawpartnersvanuatucom JONATHAN LAW LAW PARTNERS HOUSE VICKI JOE 2 PO BOX 212 ALl LA'AU PORT VILA I VANUATU www.law partnersvanuatucom Celebrating over 50 years in Vanuatu TEL +678 22091 law pariners Independent Auditors' Report to the members of Forest Carbon Partnership Facility (FCPF)- Readiness Preparation Project Grant No. TF 019203 (Vanuatu) (continued) Auditors' responsibilities for the audit of the financial statements Our objective is: * to obtain reasonable assurance about whether the financial statements as a whole is 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. They 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 financial statements. As part of an audit in accordance with the International Standards on Auditing, we exercise professional judgement and maintain professional scepticism throughout the audit. A further description of our responsibilities for the audit of the financial statements is located at the website https://wwxvw.ifac.org/system/Files/publications/files/ISA-700-Revised 3.pdf. This description forms part of our auditor's report. LAW PARTNERS Alipate La'au Chartered Accountants Partner (Qualified auditors under Section 130 of the Port Vila Companies Act No. 25 of 2012 of the 13 September 2021 Republic of Vanuatu) 3 REPUBLIC OF VANUATU DEPARTMENT OF CLIMATE CHANGE 4 Ministry of Climate Change and Natural Disasters Private Mail Bag 9054, Port Vila Telephone: (678) 22160; Email: doccAvanuatu.go-vu,; ..All correspondents directed to the Director FINANCIAL STATEMENTS FOR THE FOREST CARBON PARTNERSHIP FACILITY (FCPF) READINESS PREPARATION PROJECT Grant No. TF 019203 (Vanuatu) FOR THE YEAR ENDED 31 DECEMBER 2020 STATEMENT OF CASH RECEIPTS AND PAYMENTS Expressed in Vanuatu Vatu Notes 2020 2019 Cumulative CASH RECEIPTS 2 Direct Payments 55,329,432 29,937,438 99,361,930 Designated Account 80,217,796 124,416,145 398,883,055 TOTAL CASH RECEIPTS 135,547,228 154,353,583 498,244,985 CASH PAYMENTS Category 1 3 123,749,378 133,194,790 466,899,362 Component 1 - Institutional Strengthening 33,696,781 41,745,370 197,251,651 Component 2 - Strengthening Stakeholder Engagement Process 1,933,600 12,345,580 72,724,807 Component 3 - Development of REDD + Strategy 25,043,062 26,809,332 81,552,461 Component 4 - Establishing National Forest Monitoring 63,075,935 52,294,508 115,370,443 System TOTAL CASH PAYMENTS 123,749,378 133,194,790 466,899,362 CASH RECEIPTS LESS CASH PAYMENTS 11,797,850 21,158,793 31,345,623 IMPRESTS 7 32,600 5,052,900 13,493,600 NET CHANGE IN CASH 11,765,250 16,105,893 17,852,023 ADD OPENING CASH BALANCE AS AT 1 JANUARY 6,086,773 (10,019,120) - CLOSING CASH BALANCE AS AT 31 DECEMBER 4 17,852,023 6,086,773 17,852,023 These statements are to be read in conjunction with the accompanying notes and accounting policies 4 г� и � с� ао � и г� �� и v5 м га и и '%� с> х и а и мч � N V С3 М а тt и И О . �4 М h h © И Q� Q oq а N � с Qч N М N 00 'с9` �б И гV (у � � '�i �t N �-- t� пi и� �r ' сТ С� ,- ,-� � Р�-+ м м с r- и оо а с� о г� � с м м ез #"®� ео гю h м-- в� t� оо м с� о д ar ;� �. 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