Report No: FIN-2024-60(E) 16 May 2024 MALDIVES COVID-19 EMERGENCY INCOME SUPPORT PROJECT (ADDITIONAL FINANCING) FOR THE FINANCIAL YEAR ENDED 31ST DECEMBER 2023 TABLE OF CONTENTS Auditor General’s Report ...................................................................................................................... 1 Financial Statements Statement of Receipts and Payments........................................................................................ 4 Statement of Comparison of Budget and Actual Amounts ...................................................... 5 Notes to the Financial Statements ............................................................................................ 6 c AUDITOR GENERAL’S REPORT TO THE MINISTRY OF ECONOMIC DEVELOPMENT ON THE FINANCIAL STATEMENTS OF MALDIVES COVID-19 EMERGENCY INCOME SUPPORT PROJECT (ADDITIONAL FINANCING) Opinion We have audited the accompanying financial statements; Statement of Receipts and Payments and Statement of Comparison of Budget and Actual Amounts for the financial year ended 31st December 2023 and notes to these statements, which include a summary of significant accounting policies and other explanatory information set out in pages 4 to 10 of Maldives Covid-19 Emergency Income Support Project (Additional Financing ID: P174014), financed by International Development Association of the World Bank. In our opinion, the accompanying financial statements present fairly, in all material respects, the cash receipts and cash payments for the financial year ended 31st December 2023 and cash balances at the year then ended, in accordance with International Public Sector Accounting Standard: Financial Reporting under the Cash Basis of Accounting. In addition to the opinion, we can provide assurance that: (a) The funds provided under the Financial Agreements have been utilised for the purposes for which they were provided; and (b) The Procurement guidelines of the World Bank have been complied with in the procurement of goods and services under the project. Basis for Opinion We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Management in accordance with the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants (including International Independence Standards) (IESBA Code), and we have fulfilled our other ethical responsibilities in accordance with the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Auditor General’s Office | Chanbeylee Villa 1st Floor | Majeedhee Magu | Male’, Republic of Maldives +960 332 3939 | info@audit.gov.mv | www.audit.gov.mv 1 Responsibilities of Management and those charged with Governance for the Financial Statements The Management is responsible for the preparation and fair presentation of this financial statement in accordance with the International Public Sector Accounting Standard (IPSAS): Financial Reporting under the Cash Basis of Accounting. This responsibility includes: designing, implementing and maintaining internal controls relevant to the preparation and fair presentation of financial statement that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances. Those charged with governance are responsible for overseeing the project’s financial reporting process. Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s rep ort that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and 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 ISAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:  Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.  Obtain an understanding of internal control relevant to the audit 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 project’s internal control.  Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.  Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. Auditor General’s Office | Chanbeylee Villa 1st Floor | Majeedhee Magu | Male’, Republic of Maldives +960 332 3939 | info@audit.gov.mv | www.audit.gov.mv 2 We communicate with those charged with governance of the project regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. 16 May 2024 Hussain Niyazy Auditor General Auditor General’s Office | Chanbeylee Villa 1st Floor | Majeedhee Magu | Male’, Republic of Maldives +960 332 3939 | info@audit.gov.mv | www.audit.gov.mv 3 MINISTRY OF ECONOMIC DEVELOPMENT MALDIVES - COVID-19 EMERGENCY INCOME SUPPORT PROJECT (Pl 74014) The financial statement prepared based on cash method presents information on the source of cash, application of funds objectives and cash balances at the reporting date. The measurement focus in the financial statement is balances of cash and changes therein. 2.3 Recognition of Receipts and Payments Receipts and payments are accounted for on cash basis. Receipts are recognised when the Maldives Monetary Authority (MMA) receives the funds from World Bank (WB) to the bank account maintained for the project with it. This account is maintained in United States Dollars (USO). Payments are recognised at the time of outflow of cash either from the bank account, or from the cash account maintained for cash payrnc:nls. 2.4 Presentation Currency The financial statement has been presented using the United States Dollars (USO). And all the figures have been rnumb.l Lu Lhe nc:arest Dollar. 2.5 Foreign Currency Translation Receipts and Payments in currencies other than reporting currency (USO) are converted at the MMA exchange rate between the transaction currency and the reporting currency prevailing at the date of payment. Cash balances in currencies other than USO as at the end of the reporting period are shown in the financial statements at the exchange rate between the transaction currency and reporting currency that was prevailing at the last day of the reporting period and resulting exchange gain/loss (if any) is recognised in the financial statements. 2.6 Reporting Period Financial statement is generally prepared for one year (calendar year). Period for which financial statement is prepared are disclosed on the face of the financial statement. 2.7 Comparatives In addition to the figures for the financial year c:n