REPUBLIC OF VANUATU/REPUBLIQUE DE VANUATU VANUATU METEOROLOGY AND GEO-HAZARDS DEPARTMENT ( ' 3 DEPARTEMENT DE LA METEOROLOGIE ET DES GtORISQUES DE VANUATU Phone: (678) 24686, 22932 VOIP: 5305 Fax: (678) 22310 Email: admin@meteo.gov.vu Website: www.meteo.gov.vu Address: PMB 9054, Lini Highway, Port Vila, Vanuatu (Address correspondence to Director) (Toute correspondonce doit 6tre envoyee ou Directeur) FINANCIAL STATEMENTS FOR THE FOREST CARBON PARTNERSHIP FACILITY (FCPF) - READINESS PREPARATION PROJECT FCPF GRANT No. TF 019203 (VANUATU) For the Year Ended 31 December 2019 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 6-8 2. Cash Receipts 8 3. Cash Payments 9-10 4. Cash Balance 10 5. Budget 10- 11 6. Commitments 11 7. Imprests 12 8. Property Plant & Equipment 13 9. Related Parties 13 10. Creditors 13 11. Authorization Date 13 Sarners CHARTERED ACCOUNTANTS AND BUSINESS ADVISERS Independent Auditors' Report to the members 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(1) 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 2019 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 outr opinion, the financial statements for the year ended 31 December 2019 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 iesponsibiliies 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 Reporting tinder 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. 2 PRINCIPALS mailltawpartnersvanuatu.com JONATHAN LAW LAW PARTNERS HOUSE VICKI JOE PO BOX 212 PORTVILA VANUATU wwwiluj parltersvanuatu.com o( 50) K' 71 TEL +678 - CH ARTERD ACCOUNTA ,NT AND 3SINESS ADV SFP 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 httos://wwv.ifac.or/system/files/publications/11les/ISA-700-Revised 3.1df. This description forms part of our auditor's report. LAW PARTNERS Jonathan Law Chartered Accountants Partner (Qualified auditors under Section 130 of the Port Vila Companies Act No. 25 of 2012 of the 15 March 2021 Republic of Vanuatu) 3 REPUBLIC OF VANUATU/REPUBLIQUE DE VANUATU VANUATU METEOROLOGY AND GEO-HAZARDS DEPARTMENT )),i DEPARTEMENT DE LA METEOROLOGIE ET DES GEORISQUES DE VANUATU Phone: (678) 24686, 22932 VOIP: 5305 Fax: (678) 22310 Email: admin@meteo.gov.vu Website: www.meteo.gov.vu Address: PMB 9054, Lini Highway, Port Vila, Vanuatu (Address correspondence to Director) (Toute correspondonce doit 6tre envoyde ou Directeur) GOVERNMENT OF VANUATU VANUATU METEOROLOGICAL AND GEO-HAZARDS DEPARTMENT FINANCIAL STATEMENTS FOR THE FOREST CARBON PARTNERSHIP FACILITY (FCPF) READINESS PREPARATION PROJECT (FCPF GRANT NO. TF 019203) FOR THE YEAR ENDED 31 DECEMBER 2019 STATEMENT OF CASH RECEIPTS AND PAYMENTS Notes 2019 2018 Cumulative CASH RECEIPTS Direct Payments 2 29,937,438 44,032,498 Designated Account 2 124,416,145 56,935,665 318,665,259 TOTAL CASH RECEIPTS 154,353,583 56,935,665 362,697,757 CASH PAYMENTS Category 1 3 133,194,790 63,430,041 343,149,984 Component 1 - Institutional Strengthening 41,745,370 45,302,541 163,554,870 Component 2 - Strengthening Stakeholder Engagement Process 12,345,580 5,922,090 70,791,207 Component 3 - Development of REDD + Strategy 26,809,332 12,205,410 56,509,399 Component 4 - Establishing National Forest Monitoring System 52,294,508 52,294,508 TOTAL CASH PAYMENTS 133,194,790 63,430,041 343,149,984 CASH RECEIPTS LESS CASH PAYMENTS 21,158,793 (6,494,376) 19,547,773 IMPRESTS 7 5,052,900 8,258,100 13,461,000 NET CHANGE IN CASH 16,105,893 (14,752,476) 6,086,773 ADD OPENING CASH BALANCE AS AT 1 JANUARY (10,019,120) 4,733,356 - CLOSING CASH BALANCE AS AT 31 DECEMBER 4 6,086,773 (10,019,120) 6,086,773 These statements are to be read in conjuction with the accompanying notes and accounting policies 4 REPUBLIC OF VANUATU/RtPUBLIQUE DE VANUATU anuno VANUATU METEOROLOGY AND GEO-HAZARDS DEPARTMENT DEPARTEMENT DE LA MtTtOROLOGIE ET DES GtORISQUES DE VANUATU Phone: (678) 24686, 22932 VOIP: 5305 Fax: (678) 22310 000 Email: admin(Dmeteo.gov.vu Website: www.meteo.gov.vu Address: PMB 9054, Lini Highway, Port Vila, Vanuatu (Address correspondence to Director) (Toute correspondance doit 6tre envoyee ou Directeur) GOVERNMENT OF VANUATU DEPARTMENT OF CLIMATE CHANGE FINANCIAL STATEMENTS FOR THE FOREST CARBON PARTNERSHIP FACILITY (FCPF) READINESS PREPARATION PROJECT (FCPF GRANT NO. TF 019203) FOR THE YEAR ENDED 31 DECEMBER 2019 STATEMENT OF COMPARISON OF BUDGET AND ACTUAL Notes 2019 2018 Cumulative Grant Received Budget Actual Variance Budget Actual Variance Lifetime Budget Actual Category 1 154,353,583 152,415,000 133,194,790 19,220,210 130,465,000 63,430,041 67,034,959 689,327,000 343,149,984 Component 1- Institutional Strengthening 46,815,000 41,745,370 5,069,630 50,765,000 45,302,541 5,462,459 227,091,306 163,554,870 1.1 National REDD+ Unit and REDD+ Technical Committee 5.1 31,390,000 26,459,117 4,930,883 39,640,000 31,292,079 8,347,921 165,512,411 115,089,522 1.2 Support to NAB and its PMU 5.2 7,425,000 8,659,135 (1,234,135) 8,125,000 8,557,287 (432,287) 38,248,055 28,007,390 1.3 Set-up of Provincial REDD+ Committee 5.3 8,000,000 6,627,118 1,372,882 3,000,000 5,453,175 (2,453,175) 23,330,840 20,457,958 Component 2 - Strengthening Stakeholder Engagement Process 14,600,000 12,345,580 2,254,420 11,700,000 5,922,090 5,777,910 84,035,627 70,791,207 2.1 Strengthening decentralisation structures 5.4 12,100,000 10,299,300 1,800,700 7,700,000 5,345,240 2,354,760 47,398,665 39,607,965 2.2 Assesment and strengthening of existing FGRMs 5.5 2,500,000 2,046,280 453,720 4,000,000 576,850 3,423,150 36,636,962 31,183,242 Component 3 - Development of REDD + Strategy 34,500,000 26,809,332 7,690,668 68,000,000 12,205,410 55,794,590 128,200,067 56,509,399 3.1 Analytical work to inform REDD+ strategy options 5.6 - 3.2 SESA process and ESMF development 5.7 7,000,000 4,895,129 2,104,871 42,000,000 42,000,000 62,481,040 15,376,169 3.3 Consultation and participation activities 5.8 27,500,000 21,914,203 5,585,797 26,000,000 12,205,410 13,794,590 65,719,027 41,133,230 Component 4 - Establishing National Forest Monitoring System 5.9 56,500,000 52,294,508 4,205,492 250,000,000 52,294,508 TOTAL BUDGET AND ACTUAL 154,353,583 152,415,000 133,194,790 19,220,210 130,465,000 63,430,041 67,034,959 689,327,000 343,149,984 These statements are to be read in conjuction with the accompanying notes and accounting policies 5 REPUBLIC OF VANUATU/REPUBLIQUE DE VANUATU no VANUATU METEOROLOGY AND GEO-HAZARDS DEPARTMENT DPARTEMENT DE LA METEOROLOGIE ET DES GtORISQUES DE VANUATU Phone: (678) 24686, 22932 VOIP: 5305 Fax: (678) 22310 Email: admin@meteo.gov.vu Website: www.meteo.gov.vu Address: PMB 9054, Lini Highway, Port Vila, Vanuatu (Address correspondence to Director) (Toute correspondance doit & tre envoyde ou Directeur) Statement of Accounting Policies and Notes 1. Accounting Policies Basis of Preparation The financial statements of the project have been prepared in accordance with the requirement of the Public Finance & Economic Management Act (Cap 244) which includes the requirement to comply with generally accepted accounting practice. The financial statements have been prepared in accordance with Cash Basis IPSAS "Financial Reporting under the Cash Basis of Accounting". There have been no changes in accounting policies during the financial year. Reporting Entity These financial statements are prepared specifically for a project that is managed by the Department of Forestry (DoF), supported in its fiduciary aspects by the Project Management Unit (PMU) of the Vanuatu Department of Climate Change (DoCC). The project is funded through grants totaling US$ 6,100,000 from the Readiness Fund of the Forest Carbon Partnership Facility (FCPF), and implemented through the World Bank. The DoF and VMGD form part of the Government of Vanuatu (GoV). Under a grant agreement dated 31 March 2010, between GoV and the World Bank's International Bank for Reconstruction and Development (IBRD), an amount not exceeding US$ 200,000 was provided for formulating the REDD+ Readiness Preparation Proposal (R-PP). (REDD+ means reducing emissions from deforestation and forest degradation, conservation of forest carbon stocks, sustainable management of forest, and enhancement of forest carbon stocks). Subsequent to the formulation of the R-PP, FCPF agreed to provide funding to move ahead with preparation for REDD+ readiness. To this end, GoV, with the support of the World Bank, successfully secured this second grant of US$3,600,000 from FCPF to address these needs. In May 2018, this Grant Agreement was amended to allocate an additional US$ 2,500,000 to enable it to carry out additional activities of the Readiness Preparation. Under the Grant Agreement, only one Category of expenditure is provided for, as follows: Type US$ Category 1 Goods, non-consulting services, consultants' services, 6,100,000 Training and Workshops, and Operating Costs. Total 6,100,000 The allocation of expenditure is therefore managed through Components and sub-components. The grant agreement, and amendment, identified the budget activities according to the following four components to be implemented under the project: 1 Institutional Strengthening This includes activities to a) establish the National REDD+ Unit and supporting the REDD+ Technical Committee, b) supporting the National Advisory Board on Climate Change and Disaster Risk Reduction (NAB) and its Project Management Unit (PMU), and c) establishing the provincial REDD+ 6 REPUBLIC OF VANUATU/RPUBLIQUE DE VANUATU ,nu VANUATU METEOROLOGY AND GEO-HAZARDS DEPARTMENT I DEPARTEMENT DE LA METEOROLOGIE ET DES GEORISQUES DE VANUATU Phone: (678) 24686, 22932 VOIP: 5305 Fax: (678) 22310 0 Email: admin@meteo.gov.vu Website: www.meteo.gov.vu Address: PMB 9054, Lini Highway, Port Vila, Vanuatu (Address correspondence to Director) (Toute correspondonce doit &tre envoyde ou Directeur) Committees. All this support is done through providing financial, technical and human resource support. 2 Strengthening Stakeholders Engagement Process Activities under this component include a) strengthening participatory structures at the provincial and area council level to support stakeholder engagement in REDD+ process and b) assessing feedback and grievance redress mechanisms at the national and decentralized levels, and supporting their strengthening for REDD+. 3 Development of REDD + Strategy Activities under this Component include a) supporting analytical work to inform REDD+ strategy options, b) undertaking Strategic Environmental and Social Assessment (SESA) and preparing Environment and Social Management Framework (ESMF) and c) conducting consultation and participation on key issues related to REDD+. 4 Establishing a National Forest Monitoring Systemspl Carrying out a program of activities to establish and finalize a national forest monitoring system, including: a) developing and operationalizing a measuring, reporting, and verification system, including finalizing forest inventories; b) capacity building and strengthening of the forest monitoring system, including upgrading the database system; and c) developing and operationalizing a safeguards information systems. The project's accounting is fully integrated within the Government's Smart Stream system with additional data capture and reporting functions to accommodate the project's requirements such that payments are allocated against the respective Component, and reported accordingly. The Project commenced operations during the third quarter of 2015, although the official commencement date was 10 April 2015 (the date of the grant agreement); the current end date of the Project (as per the grant agreement) is 30 June 2020. Accounting Period IPSAS cash accounting standards require that general purpose financial statements be prepared at least annually (IPSAS cash para 1.4.1). These financial statements cover the fiscal year 2019. The balance of undrawn grants as at 31 December 2019 is US$2,827,353, which is approximately VUV 327 million. Currency Reporting Currency The reporting currency is Vanuatu Vatu (VUV). Foreign Currency In-country payments made in foreign currencies and reported in these financial statements have been converted to VUV by the National Bank of Vanuatu at the applicable rate as of the date of transaction. The in-country fund receipts transferred from the World Bank were all in VUV. 7 REPUBLIC OF VANUATU/REPUBLIQUE DE VANUATU nu, VANUATU METEOROLOGY AND GEO-HAZARDS DEPARTMENT DEPARTEMENT DE LA METEOROLOGIE ET DES GEORISQUES DE VANUATU Phone: (678) 24686, 22932 VOIP: 5305 Fax: (678) 22310 a Email: admin@meteo.gov.vu Website: www.meteo.gov.vu Address: PMB 9054, Lini Highway, Port Vila, Vanuatu (Address correspondence to Director) (Toute correspondonce doit 6tre envoyee ou Directeur) The grant mentioned above is denominated in US$. Withdrawals are charged against the grant, in the grant currency, based on exchange rates applied by the World Bank. Cash and Cash Equivalents Cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash, which are subject to an insignificant risk of changes in value. 2. Cash Receipts (VUV) Designated Account World Bank value date 04 March 2019 9,053,783 World Bank value date 10 April 2019 14,545,237 World Bank value date 21 May 2019 16,724,260 World Bank value date 20 June 2019 10,927,758 World Bank value date 08 August 2019 11,518,173 World Bank value date 09 September 2019 10,694,187 World Bank value date 15 October 2019 16,491,433 World Bank value date 18 November 2019 14,461,314 World Bank value date 31 December 2019 20,000,000 Total (VUV) 124,416,145 Direct Payments ALUBAT LTD VUV 13,551,850 WB Value date 04 March 2019 13,551,850 UNIQUE US$ 71,192.60 WB Value date 18 July 2019 8,192,794 UNIQUE US$ 71,192.60 WB Value date 18 July 2019 8,192,794 Total (VUV) 29,937,438 The Designated Account (DA) is the local, entity-managed, account; funds are transferred from World Bank periodically, from which payments are made. Direct Payments are made by World Bank directly to the supplier/consultant, based on the official request of the authorized signatories of the project. DoF receives the funds, which are managed by the Vanuatu DoCC/PMU, through the centralized Smart Stream system. Under this arrangement DoF does not control the funds; however, they carry out the implementation of the project. PMU makes payments on their behalf after appropriate authorization and documentation provided by DoF. Variance with Data in Smart Stream The Cash Receipts for 2019 in VUV in these financial statements is reconciled with the data in Smart Stream as follows: Per Smart Stream (Revenue) 168,448,643 (As per Vision report) Per Financial Statements 154,353,583 Variance 14,095,060 This variance relates to two Direct Payments from 2017 that were only posted in Smart Stream in 2019. These 2 Direct payments were made to Unique and The University of the South Pacific (USP). 8 REPUBLIC OF VANUATU/RtPUBLIQUE DE VANUATU yanue VANUATU METEOROLOGY AND GEO-HAZARDS DEPARTMENT DEPARTEMENT DE LA METEOROLOGIE ET DES GtORISQUES DE VANUATU a Phone: (678) 24686, 22932 VOIP: 5305 Fax: (678) 22310 ' .0 Email: admin@meteo.gov.vu Website: www.meteo.gov.vu Address: PMB 9054, Lini Highway, Port Vila, Vanuatu (Address correspondence to Director) (Toute correspondonce doit 6tre envoyee ou Directeur) 3. Cash Payments The overall total of payments is given in the Statement of Cash Receipts and Payments. Further details are given in the table below. SUMMARY OF PAYMENTS Notes 2019 2018 Cumulative Component 1 Institutional Strengthening 41,745,370 45,302,541 163,554,870 1.1 REDD+ Unit and TC 26,459,117 31,292,079 115,089,522 REDD+ Technical Specialist 14,111,068 13,566,399 51,013,800 Outreach and Extension Officer 1,974,474 1,821,414 8,164,122 Smartstream System Development & Implementation - - 756,000 Technical Committee Meetings 924,960 Website Designer - - 180,000 Property Plant & Equipment 8 1,054,820 105,213 10,027,645 Training & Workshops 2,411,610 3,725,500 16,697,976 Operating Costs 6,907,145 12,073,553 27,325,019 1.2 Support to NAB & PMU 8,659,135 8,557,287 28,007,390 Procurement Officer - 2,779,000 11,139,968 Structural Engeneer - 880,000 1,800,000 Cartoonist 234,000 Assistant Finance Officer - 1,937,600 2,788,600 Project Audit - 425,000 850,000 Project Manager - 1,386,000 1,386,000 Procurement Officer 2 3,927,000 200,200 4,127,200 Procurement Advisor 322,135 949,487 1,271,622 Finance Officer 4,410,000 - 4,410,000 1.3 Provincial REDD+ Committees 6,627,118 5,453,175 20,457,958 Training & Workshops 2,085,000 1,088,400 11,526,565 Operating Costs 109,540 99,000 233,040 Renovation of Forestry Extention offices 4,432,578 4,265,775 8,698,353 Component 2 Strengthening Stakholder Engagement Process 12,345,580 5,922,090 70,791,207 2.1 Strengthening Decentrali2ation Structures 10,299,300 5,380,890 39,607,965 Training & Workshops (Farmer Assocs) - 1,535,000 Training & Workshops (TAC CB) 2,348,000 5,685,680 Training & Workshops (TAC Coord) - 180,000 720,000 CSO Coordinator 35,650 1,019,590 4,181,200 Training & Workshops (CSO) 7,915,650 4,181,300 27,486,085 2.2 Assessment & Strengthening of FGRMs 2,046,280 541,200 31,183,242 Institutional specialist - - 16,468,540 legal Draftsman - 9,331,247 Training and Workshops 2,046,280 - 5,383,455 Travel Expenses - 541,200 - Component3 Development of REDD+ Strategy 26,809,332 12,205,410 56,509,399 3.1 Analytical Work for Strategy Options - - - 3.2 SESA Process & ESMF Development 4,895,129 - 15,376,169 Strategic Environment and Social Assessment 3,863,259 - 11,530,309 SESA Training and Workshop 1,031,870 - 3,845,860 3.3 Consultation and Participation Activities 21,914,203 12,205,410 41,133,230 Awareness materials (design & development) - 2,861,625 2,881,625 Media Awareness producer 163,573 240,000 483,573 VBTC 590,380 140,625 731,005 Training & Workshops 7,348,400 7,385,050 18,142,143 Property Plant & Equipment 8 13,551,850 - 15,731,774 Media awareness production 260,000 1,060,110 2,320,110 Printing of materials - 518,000 843,000 Component 4 Establishing National Forest Monitoring System 52,294,508 - 52,294,508 Inventory, MRV, Database etc 16,385,588 . 16,385,588 Database Officer 1,344,000 - 1,344,000 NTFP 6,617,570 - 6,617,570 Redd+ Strategy - Training & Workshops 26,216,850 - 26,216,850 Field Materials 1,730,500 - 1,730,500 Total 133,194,790 63,430,041 343,149,984 9 REPUBLIC OF VANUATU/RtPUBLIQUE DE VANUATU 4 nue VANUATU METEOROLOGY AND GEO-HAZARDS DEPARTMENT DPARTEMENT DE LA METOROLOGIE ET DES G12ORISQUES DE VANUATU 0 Phone: (678) 24686, 22932 VOIP: 5305 Fax: (678) 22310 000 Email: admin@meteo.gov.vu Website: www.meteo.gov.vu Address: PMB 9054, Lini Highway, Port Vila, Vanuatu (Address correspondence to Director) (Toute correspondonce doit dtre envoy6e ou Directeur) Variance with Data in Smart Stream The Cash Payments for 2019 in VUV in these financial statements is reconciled with the data in Smart Stream as follows: Per Smart Stream (Expenses) 180,691,021 (As per Vision report) Per Financial Statements 133,194,790 Variance 47,496,231 The variance relates to transactions posted in Smart Stream in different years, as follows: Accruals 2018 (deducted in Smart Stream in Jan 2019) (1,853,552) Accruals 2019 (added in Smart Stream in Dec 2019) 7,059,296 Direct Payments from 2017, posted into Smart Stream in 2019 14,095,060 Imprest Retirements included in Smart Stream in different years 14,329,525 2018 expenses paid by IRCCNH (corrected in Smart Stream in 2019) 11,945,842 2017 imprest paid by IRCCNH (corrected in Smart Stream in 2019) 1,920,000 Journal to be taken up in Smart Stream 60 Total 47,496,231 4. Cash Balance The closing cash balance in these financial statements is taken up as follows: Balance in the GoV Smart Stream ledger as at 31 December 2019 (972,583) Accruals in the GoV Smart Stream ledger as at 31 December 2019 7,059,296 Journal to be taken up in Smart Stream 60 Total 6,086,773 5. Budget The 2019 budget was developed for all the components and sub-components for this project, on the same accounting basis (cash basis) as for the financial statements. It encompasses the same entities as the financial statements. The lifetime budget in VUV as per these financial statements is based on the total funding available, in equivalent VUV. The lifetime budget is monitored against the likely amount of VUV to be generated from the US$ grant, to ensure that the grant is not over-committed. There is no budget for Cash Receipts; drawdowns from the grant are made to ensure that there are sufficient funds available to meet payment commitments on an ongoing basis. 5.1 Explanation Variance Component 1.1 Technical committee meetings and workshops were not all carried out as planned, due to other commitments of some members of the technical committee. Due to the resignation of the Project Coordinator some of his activities were not carried out as planned. 10 REPUBLIC OF VANUATU/REPUBLIQUE DE VANUATU nonf, VANUATU METEOROLOGY AND GEO-HAZARDS DEPARTMENT DEPARTEMENT DE LA MtTtOROLOGIE ET DES GEORISQUES DE VANUATU Phone: (678) 24686, 22932 VOIP: 5305 Fax: (678) 22310 Email: admin@meteo.gov.vu Website: www.meteo.gov.vu Address: PMB 9054, Lini Highway, Port Vila, Vanuatu (Address correspondence to Director) (Toute correspondonce doit 6tre envoyee ou Directeur) 5.2 Explanation Variance Component 1.2 The estimation of the budget was lower when contracting the Senior Finance Officer and other consultants. 5.3 Explanation variance Component 1.3 More Workshops, Meetings and Awareness were carried out as planned due to the increase of DA (Designated Account) ceiling. 5.4 Explanation Variance Component 2.1 More Workshops, Meetings and Awareness were carried out as planned due to the increase of DA (Designated Account) ceiling 5.5 Explanation Variance Component 2.2 More Workshops, Meetings and Awareness were carried out as planned due to the increase of DA (Designated Account) ceiling. 5.6 Explanation Variance Component 3.1 More Workshops, Meetings and Awareness were carried out as planned due to the increase of DA (Designated Account) ceiling. 5.7 Explanation Variance Component 3.2 More Workshops, Meetings and Awareness were carried out as planned due to the increase of DA (Designated Account) ceiling. 5.8 Explanation Variance Component 3.3 More Workshops, Meetings and Awareness were carried out as planned due to the increase of DA (Designated Account) ceiling. 5.9 Explanation Variance Component 4 This activity was started in 2019 due to the availability and increase of the DA ceiling. 6. Commitments The outstanding (unpaid) contract commitments, as at 31 December 2019 is VUV 129,712,935 (2018: VUV 32,479,976) as detailed by component in the following Table. All outstanding commitments as at 31 December 2019 are due within the period to closure (30 June 2020). 2019 2018 Component 1 17,279,362 32,444,326 Component 2 - 35,650 Component 3 33,960,241 - Component 4 78,473,332 TOTAL 129,712,935 32,479,976 Commitments for contracts in currencies other than VUV have been converted to VUV using the exchange rate as at 31 December 2019. 11 REPUBLIC OF VANUATU/REPUBLIQUE DE VANUATU 1anua, VANUATU METEOROLOGY AND GEO-HAZARDS DEPARTMENT DEPARTEMENT DE LA MI2TEOROLOGIE ET DES GEORISQUES DE VANUATU Phone: (678) 24686, 22932 VOIP: 5305 Fax: (678) 22310 000 Email: admin@meteo.gov.vu Website: www.meteo.gov.vu Address: PMB 9054, Lini Highway, Port Vila, Vanuatu (Address correspondence to Director) (Toute correspondonce doit 6tre envoyde ou Directeur) 7. Imprests As at 31 December 2019, imprests totalling VUV 13,461,000 (2018 - VUV 8,408,100) had not been retired yet, as per the detailed table below. GOVERNMENT OF VANUATU DEPARTMENT OF CLIMATE CHANGE FINANCIAL STATEMENTS FOR THE FOREST CARBON PARTNERSHIP FACILITY (FCPF) READINESS PREPARATION PROJECT (FCPF GRANT NO. TF 019203) FOR THE YEAR ENDED 31 DECEMBER 2019 IMPRESTS SUMMARY FOR THE YEAR ENDED 31 DECEMBER 2019 Cumulative Net Cumulative Date of Balance Imprests Retired Refund Movement Balance Name Advance 31/12/2018 2019 2019 2019 2019 31/12/2019 ABM (Fuel) various 150,000 100,000 100,000 250,000 (1) WATSON LUI 20/08/2018 1,848,000 1,848,000 (1,848,000) - SAMSON LULU 5/12/2018 504,000 504,000 (504,000) - lOAN Vi 7/12/2018 2,085,000 2,085,000 (2,085,000) - RUTH NALAU 11/12/2018 610,000 610,000 (610,000) - REXON VIRA 19/12/2018 3,211,100 3,211,100 (3,211,100) - GODFREY BOME 14/03/2019 2,348,000 2,348,000 - - RUTH NALAU 14/03/2019 3,490,000 3,490,000 - - HUMAO T.SELE 12/04/2019 930,800 930,800 - lOAN VIi 2/05/2019 2,054,200 2,054,200 - PHILLIS KAMASTEIA 3/05/2019 1,212,400 1,212,400 - STEPHEN JONAH 15/05/2019 3,555,000 3,555,000 - - RUTH NALAU 28/05/2019 235,000 235,000 - - JAMES SAMUEL 13/06/2019 6,379,000 6,379,000 - - FLORENCE IAUTU 28/06/2019 1,832,000 1,832,000 - - TAURA TITUS 9/07/2019 1,692,400 1,692,400 1,692,400 (2) RUTH NALAU 16/07/2019 1,749,800 1,749,800 - - GODFREY BOME 20/08/2019 3,750,600 3,750,600 - - PHILLIMON ALA 28/08/2019 5,029,000 5,029,000 - - SAMSON LULU 11/10/2019 852,400 852,400 - - STEPHEN JONAH 2/12/2019 9,870,600 9,870,600 9,870,600 (3) HELEN MAKIN 10/12/2019 1,648,000 1,648,000 1,648,000 (4) TOTAL IMPRESTS 8,408,100 46,729,200 41,676,300- 5,052,900 13,461,000 Note (1) Fuel Imprest is on-going through 31/12/2019 and this is for the project vehicle Note (2) Imprest is for CSO activity and the retirement is in Q2 of 2020 Note (3) Imprest is for NFI (MRV) and the retirement is in Q1 of 2020 Note (4) Imprest is for SESA workshop and the retirement is in Q2 of 2020 12 REPUBLIC OF VANUATU/RIPUBLIQUE DE VANUATU I , VANUATU METEOROLOGY AND GEO-HAZARDS DEPARTMENT DEPARTEMENT DE LA METEOROLOGIE ET DES GEORISQUES DE VANUATU Phone: (678) 24686, 22932 VOIP: 5305 Fax: (678) 22310 Email: admin@meteo.gov.vu Website: www.meteo.gov.vu Address: PMB 9054, Lini Highway, Port Vila, Vanuatu (Address correspondence to Director) (Toute correspondonce doit 6tre envoyee ou Directeur) 8. Property Plant & Equipment Payments for Property Plant & Equipment (PPE) are charged fully as disbursements under the respective Component, and included in the Statement of Cash Receipts and Payments, at cost; these are recorded in a PPE Register, for the purposes of inventory control. 2019 2018 Cumulative Motor Vehicles 2,990,000 IT Equipment 584,978 105,213 3,915,085 Office Furniture 184,082 1,096,868 Building Extension 3,919,856 NFI Tools 12,057,190 12,057,190 TOTAL 12,826,250 105,213 23,978,999 There are no fixed assets purchased on hire purchase schemes and no depreciation is being charged. 9. Related Parties There were no related party transactions during the year. The ultimate owner of the project is Vanuatu Government through the Department of Forestry, as set out in the Grant Agreement. 10. Creditors There was a total amount of VUV 7,059,296 for 2019 invoices representing LPOs raised in 2018, but not paid until 2019 (2018: VUV 1,853,552). 11. Authorization Date The financial statements were authorized for issue on 15th of March 2021 by Mr. Mike Sam Waiwal on behalf of DoF and Director of the Department of Climate Change. Mr Mike Sam WAIWAI Mrs Esline /ARAr/ 6 Director DoCC ' DG MoCC 13