LOAN 8007- AND 3 2 5 on 1 2 VS 3 4-5 6 7- 11~ I AUDITOR GENERAL'S DEPARTMENT 40 KNUTSFORD BOULEVARD P.O. B0X455 KINGSTON 5 JAMAICA Tel. No.: 926-8309/926-5963/926-5846 Fax Number: 968-4690 Email: audgen@auditorgeneral.gov.jm ~eo~err1oer29,2015 Energy Security was ~~,,~~·~--,~ Article V Section 5.09 Agreement between the Government of Jamaica (GOJ) for Reconstruction and Development dated Mayl9, 11. executing agency, the Ministry of Science Technology Energy and is responsible preparation and presentation of these Financial Statements, in accordance with International (IPSAS) designing, implementing and maintaining internal controls, relevant to the presentation of u ....,,,.,, .... statements that are from material misstatement, whether, due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable the circumstances. The Ministry is also required to audited Statements to the The attached Financial Statements and supplementary financial information which are described were submitted to me by Project Implementing Unit (PIU) in accordance with Article V Section 5.09 (b) (ii) of aforementioned Loan Agreement to the transactions of Programme from its inception May 19, 2011 to close of the year at March 31, 2015. II Statement 1 - Statement of Sources and Uses of Funds Statement 2 of Cumulative Investments :Stftte1ne111t 3 - Statement of Cumulative Investments Actual vs. Budgeted Special Bank Account Statement period 1, to March 31, Statement requests for Supplementary Notes to the Financial Statements My responsibility is to express an opm10n on these financial statements based on my audit. I conducted my audit accordance the auditing standards issued by International Organisation of Supreme Audit Institutions (INTOSAI). Those standards require that I comply ethical requirements and and perform the audit to obtain assurance about whether financial statements are free from material misstatements. These Statements and the supporting transactions records were in accordance generally accepted auditing standards recommended by the INTOSAI and accordingly, included such test and other procedures as I considered necessary. I the information and explanations which I required. my opinion, the appended Statements and Supplementary Financial Information a true and fair view the transactions of the Programme for the period under review and the transactions conformed to terms of the Loan Agreement. COMPLIANCE WITH APPLICABLE LAWS, REGULATIONS AND period under review, I examined Implementing Unit of the the and to activities and with the accounting/financial/ management clauses of the Loan Agreement No. 8007- JM. There was general compliance with the following articles contained Loan Agreement Section 3.01: Article V General Conditions Article Section 3.02: Schedule 2 - Project Section I: Project Implementation Arrangements Section Project Monitoring, Reporting and Evaluation Section III: Procurement Section IV: Withdrawal of Loan Proceeds my opinion, the PIU maintained an adequate accounting system based on separate and clearly identifiable accounts which enabled the recording, monitoring and reporting of the operations and costs under programme accordance with satisfactory accounting/financial/management practices and standards as required by Article III Section 5.09 (a) of the Agreement. I have examined the appended Special Bank Account Statement - Statement 4, reflecting the movement in the Special Bank Account for the ended March 31, 2015. Special Bank , ~-., ... v,,..... No. 234 289 977 is maintained in United States in the name of the Ministry of Finance No. 8007-JM. My examination was made accordance with standards the International Organisation of Supreme Audit Institutions (INTOSAI) and accordingly included such tests of the accounting records and other procedures I considered necessary. In my opinion, the Special Bank Account Statement reflects the balance in the Special Bank Account at March 3 I, 2015 as as transactions made during the period April 1 2014 to March 31, 2015 in confom1ity with International Public Sector Accounting Standards (IPSAS) Cash Basis. Date 31,2014 Current Year 2015 Sources of Funds .!,!§! .!,!§! World Bank Financing Designated Account - A 1,916,650.00 1,329,587.00 3,246,237.00 Designated Account - B 3,429,640.00 2,075,694.64 5,505,334.64 Retroactive Financing Direct Payment Front End Fee 37,500.00 37,500.00 GOJ Invest. To Open Designated Account - A 100.00 100.00 Interest on bank balance 260.23 Total Receipts 5,400,325.99 3,405,541.87 8,805,867.86 Uses of Funds Comp I: Strengthening Institutional and Regulatory Environment 1,549,804.63 396,315.26 1,946,119.89 494,000.00 Comp II: Energy Efficiency and Renewable Energy 605,154.74 676,671.38 1,281,826.12 1,822,348.00 Comp IIA: Line of Credit - OBJ 1,916,650.00 1,328,413.25 3,245,063.25 695,652.00 Comp Ill: Project Management, Monitoring and Evaluation 337,393.67 93,475.30 430,868.97 118,000.00 TOTAL PROJECT INVESTMENTS Front End Fee TOTAl PROJECT INVESTMENTS AND FEES Net Cash Movement MOVEMENT IN BANK BALANCES: Balances World Bank DA - 8 937,386.96 Line of Credit DA-A Closing Balances World Bank DA - 8 937,386.96 1,846,608.06 i ,846,608.06 Line of Credit DA-A Total Balances 953,822.95 1,864,489.63 1,864,489.63 Net in Bank Balances Parker Financial Management Specialist Director; Expenditure Control: MSTEM Hillary Alex~r (Ms.) Permanent Secretary Ministry of Science, Technology, Energy and Mining Page 1 CURRENT YEAR CUMMULATIVE . As at March 31,2015 As at March 31, 2015 Cateaorv Jl.n< for goods and services for y/e 31/3/2015 Total Project Investment Closing Balance per G/L 31/3/2015 Neville Cadogan Financial Management Specialist Director Expenditure Control- MSTEM Permanent Secretary of Science, Energy and 4 JJC.U.UH~A, as at 1, 2014 1 - World Bank/IDA ~•u·~~·"'-'H.LvHL 1,329,587.00 balance 172.60 4/2015 1 1,328,413.25 1 3.25 subtotal 17,782.34 l Neville Cadogan Financial Management Specialist Director: Control - MSTEM Al6 ander (Ms.) ... ~..-· .. Secretary Ministry of Energy Mining 5 Disbursement Category Retroactive DATE Number Advance Financinq Front End Fee US$ Disbursement Request Designated Acct. "B" December 16, 2014 7 2,075,694.64 - - 2,075,694.64 Designated Acct. "A" September 12, 2014 DBJ 4 488,587.00 - - 488,587 December 15, 2014 DBJ 5 841,000.00 841,000 subtotal "A" 1,329,587.00 - - 1,329,587.00 Requests pending Reimbursemenl - - - TOTAL AMOUNT REQUESTED DURING THE YEAR 2013/2015 Hillary nder (Ms) Perman nt Secretary Ministry of Science Technol;ogy Energy and Mining 6 TECHNOLOGY,ENERGY Efficiency Enhancement (ESEEP) Loan# 8007-JM Audited Financial Statements 31, General Efficiency Enhancement (ESEEP) is one the key initiatives to ensure implementation of the National Policy, and as the World Bank and Government of Jamaica (GoJ) agreed to provide the appropriate financial, institutional to ensure policy target and indicators are achieved, the context of country's Medium Economic strategy. The National Policy creates the to significantly its energy and position country to move on a trajectory of sustainable The Project is to increase energy efficiency and security through implementation National Energy Policy. There are three (3) under the Energy Security and Enhancement 1. Strengthening the institutional framework to improve sector performance, private and to cleaner fuels such as Gas.; Jamaica's Energy potential Renewable Energy (RE) sector consumer education/information; 7 TECHNOLOGY, ENERGY AND MINING Energy and Efficiency Enhancement (ESEEP) Loan# 8007-JM Audited Project Financial Statements For the Year Ended March 31, Component 3. Project Management and Monitoring and Evaluation (M&E), including compliance with fiduciary requirements and appropriate Monitoring and valuation activities. Implementing Partners Implementing Partners are: ~ Ministry of Science, Technology, Energy & Mining (MSTEM) >" Office of Utilities (OUR) >" Petroleum Corporation Jamaica (PCJ) >" Bureau of Standards Jamaica (BSJ) >" Development Bank of Jamaica (DBJ) 3. Budget The budgeted amounts for budget of Jamaica for the fiscal year ended March 31, 2015. responsibility for preparing financial statements is that of the Energy Security Project 2015. 8 MINISTRY OF SCIENCE, Security and Efficiency Enhancement Loan# 8007 -JM Project Statements Fo:r the Ended March 5. I} of Preparation The Project Implementing Unit (PIE) uses Public Sector Accounting Standards (IPSAS) Cash basis accounting to account for project's transactions. Under basis, income is recognized when funds are received rather than when requested expenses are recognized when is made are incurred. Since the main these statements is to disclose the sources and uses of funds, it is not necessary to present information adjusted for inflation. II) Recording of Transactions Transactions are United States Dollars. transactions are incurred local currency and are preparation the Financial receipt and expenditure is translated to applying the bank's conversion rate. Equipment assets other fixed assets procured with project resources are at their acquisition cost at the of Depreciation is not charged on assets and as such, no depreciation charge is reflected on these financial statements. 9 MINISTRY SCIENCE, TECHNOLOGY, ENERGY AND MINING Energy Security and Efficiency Enhancement Project (ESEEP) Loan# 8007-JM Audited Project Financial Statements the Year Ended March 31, 2015 Cash availability as at March 31, 2015 The cash available as at March 31, 2015, as expressed in US dollars World Bank Total $ $ Special Account - A 17,881.57 17,881.57 Special Account - B 1.846.608.06 1.346.195.59 Total Closing Balances 1.864.489.63 1.364.077.16 Special Account - A is the Designated Account operated by the Development Bank of Jamaica for the disbursement of energy loans under the Line of Credit (LoC) facility. Funds disbursed by the World Bank for the LoC is directly transferred to this account. Assets Schedule Furniture and Equipment Computer TOTAL US$ US$ US$ Cumulative at March 31, 2015 10