WORLD BANK COVID 19 EMERGENCY RESPONSE PROJECT GRANT NOs. D6280-SB, TFOB8365, E0250, CREDIT NO.6633-SB FINANCIAL REPORTS FOR THE PERIOD FROM 1ST JANUARY 2023 TO 31ST DECEMBER 2023 TABLE OF CONTENTS Page Report of the Executing Agency 1 Auditor's report 2-4 Statement of Cash Receipts and Payments 5 Notes to and forming part of the Statement of Cash Receipts and Payments 6 - 8 Statement of Comparison of Budgets and Actuals 9 Reconciliation between funds disbursed by the World Bank and funds received by Covid 19 Emergency Response Project 10 WORLD BANK COVID 19 EMERGENCY RESPONSE PROJECT GRANT NOs. D6280-SB, TFOB8365, E0250, CREDIT No.6633-SB FINANCIAL REPORTS FOR THE PERIOD FROM 1ST JANUARY 2023 TO 31ST DECEMBER 2023 Report of the Executing Agency Under the terms of my contract, I have the mandate from the World Bank and the Ministry of Finance as Executing Agency, to supervise and manage the funds provided for the Covid 19 Emergency Response Project funded by the World Bank I certify that the attached Statement of Cash Receipts and Payments which has been prepared under my supervision presents a true and fair view of the cash receipts and payments of the Covid 19 Emergency Response Project for the year ended 31st December 2023. Dated at Honiara this 30th day of September 2024. Pauline McNeil Permanent Secretary Ministry of Health and Medical Services Executing Agency Representative Covid 19 Emergency Response Project Independent Auditor's Report to the COVID 19 Emergency Response Project Report on the Audit of the Financial Statements Qualified Opinion I have audited the accompanying financial statements of the COVID 19 Emergency Response Project for IDA Grant D6280-SB and IDA Credit 6633-SB ("the Project") which comprise the Statement of Cash Receipts and Payments and Statement of Comparison of Budgets and Actuals for the year ended 31 December 2023, and notes to the financial statements, including a summary of significant accounting policies. The accompanying financial statements have been prepared in accordance with the Financing Agreement (the Agreement) dated 27 January 2021, and E0250 and TFOB8365 dated 23rd May 2022 between the Solomon Islands Government (the Recipient) and the International Development Association (World Bank). In my opinion: * the accompanying financial statements, in all material respects give a true and fair view of the Project's receipts and payments for the year ended 31 December 2023, in accordance with International Public Sector Accounting Standard (IPSAS) Cash Basis; and * except for matters noted in Report on other lego? and regulatory requirements, payments made by the Project have, in all material respects, been used in accordance with the conditions of the Agreement, and only for the purposes for which they were provided and adequate documentation exists to support the payments incurred as detailed in the Statement of Cash Receipts and Payments. Basis of opinion I conducted my audit in accordance with International Standards of Supreme Audit Institutions (ISSAI). My responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Financial Statements section of my report. I am independent of the Project in accordance with International Organization of Supreme Audit Institutions (INTOSAI) Code of Ethics, and the ethical requirements that are relevant to my audit of the financial statements and I have fulfilled my other ethical responsibilities in accordance with these requirements. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion. Emphasis of Matter - Basis of Accounting and Restriction on Use I draw attention to Note 1 to the financial statements, which describes the basis of accounting. The financial statements are prepared to assist the Project to meet the requirements of the World Bank. As such, the financial statements may not be suitable for another purpose. Our opinion is not modified in respect of this matter. Other information Management is responsible for the other information. The other information comprises the information included in the Executing Agency's report, but does not include the financial statements and my auditors' report thereon. My opinion on the financial statements does not cover the other information and I do not express any form of assurance conclusion thereon. In connection with my audit of the financial statements, my responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or my knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work I have performed, I conclude that there is a material misstatement of this other information, I am required to report that fact. I have nothing to report in this regard. Responsibilities of Management and Those Charged with Governance for the Financial Statement Management are responsible for the preparation and fair presentation of the financial statements in accordance with IPSAS Cash Basis, the requirements of the World Bank and the Grant Agreements D6280-SB and 6633-SB dated 27th January 2021, and E0250 and TFOB8365 dated 23rd May 2022 between the Recipient and World Bank and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Those charged with governance are responsible for overseeing the Project's financial reporting process. Auditor's Responsibilities for the Audit of the Financial Statements My objective is 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 auditors' report that includes my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with International Standards of Supreme Audit Institutions (ISSAls) 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 ISSAs, I exercise professional judgment and maintain professional skepticism throughout the audit. I 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 my 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. I communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identified during my audit. Report on Other Legal and regulatory requirements I have obtained all the information and explanations which, to the best of my knowledge and belief, are necessary for the purposes of my audit. In my opinion: i) proper books of account have been kept by the Project, sufficient to enable financial statements to be prepared, so far as it appears from my examination of those books; and ii) except for matters noted in iii) and iv) below, to the best of my knowledge and according to the information and explanations given to us, the financial statements have been prepared in accordance with the requirements of the Agreement i1i) the Project did not comply with the requirements of the Procurement & Contract Administration Manual, Regulations and Financial Circulars with respect to its procurement processes as required by the Agreement and the Project Operations Manual. iv) the Project did not comply with the requirements of the Agreement and the Project Operations Manual which require the audited financial statements to be submitted to the World Bank no later than six months after the year end to which the financial statements relate. The signed statements were presented to me on 30 September 2024. D ds T DOffice of the Auditor-General Au itor-Ger-eral ,Honiara, Solomon Islands 30 Se tember-2024 WORLDBANK COVID 19 EMERGENCY RESPONSE PROJECT GRANT NOs. D6280-SB, TFOB8365, E0250, CREDIT NO.6833-SB STATEMENT OF CASH RECEIPTS AND PAYMENTS FOR THE PERIOD FROM 1ST JANUARY 2023 TO 31ST DECEMBER 2023 Notes Receipts / Receipts I Payments 2023 Payments 2022 $ $ RECEIPTS External Assistance - Multilateral Agencies World Bank - Grant and Credit received: Proceeds from IDA Funds (D6280-SB) 3 3,047,537 7,251,086 Proceeds from IDA Funds (6633-SB) 3 43,500 3,789,973 Proceeds from Trust Funds (TOFB8365) 3 10,055,816 3,000,000 Proceeds from IDA Funds (E0250) 3 9,899,421 5,869,314 23,046,274 19,910,373 Other Receipts Bank Interest 1,507 933 TOTAL RECEIPTS 23,047,781 19,911,306 PAYMENTS Preparedness and Response Consumables - laboratory PPE 4 31,326 361,258 Contractual workers 4 612,023 4,934,180 Operational expenses 4 841,117 7,433,495 Vaccine deployment support 4 12,999,374 3,987,607 14,483,840 16,716,540 Health System Strengthening Equipment - incinerator 5 2,479,025 424,812 Health care waste management support 5 - 10,500 Provincial hospital renovation 5 23,000 117,018 Refurbishments 5 2,258,048 1,737,100 Strengthening HR systems and policy 5 - 176,083 Training 5 327,501 321,031 New TA for Des gn & Supervision 5 776,632 230,762 Risks Surveys 5 380,410 - 6,244,616 3,017,306 Project Implementation Management Project management expense 6 2,048,493 1,338,115 Monitoring and evaluation 6 532.250 150,947 2,580,743 1,489,062 TOTAL PAYMENTS 23,309,199 21,222,908 Increasel(Decrease) in Cash (261,418) (1,311,602) Cash at beginning of period 1,291,824 2,603,426 Cash at end of period 2 1,030,406 1,291,824 The statement is to be read in conjunction with Notes to and forming part of the Statements of Cash Receipts and Payments on page 6 to 8. WORLD BANK COVID 19 EMERGENCY RESPONSE PROJECT GRANT NOs. D6280-SB, TFOBB365, E0250, CREDIT NO.6633-SB NOTES TO AND FORMING PART OF THE STATEMENT OF CASH RECEIPTS AND PAYMENTS FOR THE PERIOD FROM 1ST JANUARY 2023 TO 31ST DECEMBER 2023 1 STATEMENT OF ACCOUNTING POLICIES a Basis of Preparation The Statement of Cash Receipts and Payments has been prepared in accordance with International Publc Sector Accounting Standauts Financial Reporog under the Cash Basis of Accounting (Cash Basis IPSASt The accOuntinq policies have been applied consistently thrcghoA the period b Reporting entity The Statement of Cash Receipts and Payments is for the Covid 19 Emergency Response Project as supervised by the Ministry of Finance in Solomon Islands The program commenced on 27 January 2021 with the signing of the ftnancing agreementawith the World Bach. This Statement covers the period from 1 January 2023 to 31 December 2023. In accordance with the grant agreement all of the funds are to come from the World Bank c Reporting currency The accounts are stated in Salomon Delars (SBD) as this is the currency used for the grants and credit and all project reports Foreign currency equivalents are converted at the rate applicable on the date of transaction However, budget figures are converted at the rate of I USD ' 8.03 S0 which is the average exchange rate for all funds race ved in the financial period 2022 Undisbursed amounts denominated in foreign currencies are converted into Solomon Dollars (S0) at the rate of 1 USD = 8.47 SBD which is the exchanee rate at the financial period end 31st December 2023 d Fixed assets Captal expenditure is expensed during the year in which the expenditure is made e Budget Budget information for the grant funding is set out on page 9 2 CASH Cash is cotnprised of cash balances 2023 2022 $ $ Cash at bank (BSP Ac no 2001325188) 1030,406 1,291 824 1 ---- ,030,408 1,291,824 3 EXTERNAL ASSISTANCE - UNDRAWN Asof 31st December 2023. the following arounts are undrawn TOTAL FUNDS DISBURSED UNDISBURSED _ XDR XDR SBD XDR SOD To-Date 2023 To-Date GRAT DA 0D280-SB FUNDS XDR 1 800 000 00 XDRI 1 345 831 $3047.537 $15298,623 XDR 454 169 5,182,728 68 CREDIT IDA 8833-SBFNDS FLI XDR 1 8000000 XDR 618 73974 $43, 00 $7033,473 XDR 1,881,260 26 21385,070 99 IDA - E0250 XDR 3 700 000 00 XDR 1 387 187.10 $9 899421 $15768,735 XDR 2,312,812 90 26,290,710 06 TRUST FUND -TFOB8365 US D3 000 000D USD 1 541 41865 $10 055 81f6 S3055816 UiS 1 458 581 35 16,580,303 31 TOTAL __ 23046,274 51,156,647 _ _ 69,418,813.05 Exchange rate - 1 USD = 8.47 SBD t XDR = 1 34208000 USD The above urtdawn amounts are to fund the project up to 31 st of December 2024 The funds can be disbursedto Inh project's designated accounts by submission of withdrawal applications by the project and approval by the World Bank. Each fund has its own ceiling and the projects designated accounts currently has a celling of $5 000.000 SBD for Grant and $3,200,000 for Credit $5.200 000 for IDA and S3000000 for Trust Funds under Covid 19 Emergency Project All funds are pooled into the project s designated account The credit IDA 6633-SB is repayable cormnmeicing from 15 January 2031 to 15 July 2040 at the rate of 1% andcomnencsg 15 January 2041 to 15 July 2060 at the rate of 2% WORLD BANK COVID 19 EMERGENCY RESPONSE PROJECT GRANT NOs. D5280-SB, TFOB8365, E0250, CREDIT NO.6i33-SB NOTES TO AND FORMING PART OF THE STATEMENT OF CASH RECEIPTS AND PAYMENTS FOR THE PERIOD FROM 1ST JANUARY 2023 TO 31ST DECEMBER 2023 2023 2022 $ $ 4 Component 1 PPE's Laboratory Consunables Laboratory test kits - GeneXperts and OPR machine 31 326 66550 Laboratory consumabls - COVID 19 tests 294,169 31 326 391,2583 Contractual Workers Lboratory technicians,Logistics & Nurses 349 839 624 070 Communications specialists 224839 404 039 Technical advisor 38.118 402203 International consultant - ,503.81 612023 4,934,1S0 Operational Expense for the Response Effort Including GeV Accommodation 159655 1 35340 Electricity - 1 032 323 Equipment 35701 1 532194 Food expense 906 Motor vehicle expenses 258906 NPF surcharges 19 506 - Office supplies and general expense 21 .995 37,439 Printing and photocopy 530.811 826,821 Professional services - land clearance 393,501 Security - 120,000 Training 48,860 105,000 Travetting and transport hire 24,389 1,522,560 841,111 7 433 495 Support to COVID 19 Vaccines Deployment Human resources costs 1,789,898 1 182,490 Transport 8,439,890 1,1248B72 Demand generation and communication - Outreach and Printng 1,646 549 1 700245 Operational Cost Associated with Vaccine Deployment 23 037 - 12999374 3,987 607 5 Component 2 Provincial Hospital Renovation Renovation 23 CO 11018 23000OD 11 018 Incinerators Equipment - incenerators 2 9,025 424812 2,419,025 __424.812, Health Care Waste Management Support Motor vehicles expenses 10.500 Refurbishment cost Refurbish of National Health Emergency Centre (NHFOCI Refurbishment of National Medical Stores 2258049 13100 325804 1 117 tO Training (IPC,GBV, Waste Management, Surveillance, Warehouse Training - GeV 199 485 167,526 Training - Sureillance and ]PC 128 016 153,505 327.501 Strengthening HR Systems and Policy RDP Implementation Support Services and HR Systems 116083 _17083 NEW TA for Design and Supervision Infrastruct,re Manager 473136 230782 Infrastructure Design Consultant (CADD) 110179 Supervisor ConsUltant (Civil Engineer) 193 320 716632 230,762 Risks Survey survey 160000 - Cecitech 100,000 Urnexploded ordnance (UXO) 120,410 ___ -__ 380 410 WORLD BANK COVID 19 EMERGENCY RESPONSE PROJECT GRANT NOs. D6280-SB, TFO88386, E0250, CREDIT Ni.6633-SR NOTES TO AND FORMING PART OF THE STATEMENT OF CASH RECEIPTS AND PAYMENTS FOR THE PERIOD FROM 1ST JANUARY 2023 TO 31ST DECEMBER 2023 2023 2022 $ $ 6 Component 3 Project Management Project manager 555184 231,428 ProCUremenrt ofcer 136796 190,973 Financial management officer 245421 185,973 Monitoring ard evaluation officer 139789 181,413 Environment, social and health safety & community engagement officer 184,681 183,973 Environment. social and health safety & community engagement specialist 34527 41,631 Audit Fee 170.00D - Office setup and mobilization cost 21344 322.724 2,048 493 1 338.115 Monitoring and Evaluation Travelling and project visit 253,529 141,047 Worksh-op and meeting 278,721 9,900 532 250 150,947 7 EXTERNAL ASSISTANCE - PAYMENTS BY THIRD PARTIES There were no payments by third parties 8 RESTRICTIONS ON CASH BALANCES AND ACCESS TO BORROWINGS The amounts presented in the budgets are all under the control of the World Bank World Bank Covd 19 Emergency Project only controls the amounts paid to its designated accounts WORLD BANK COVID 19 EMERGENCY RESPONSE PROJECT GRANT NOs. 06280-SB, TF0B8365, E0250, CREDIT NO.6633-SB STATEMENT OF COMPARISION OF BUDGETS AND ACTUALS FOR THE PERIOD FROM 1ST JANUARY 2023 TO 31ST DECEMBER 2023 Final Budget Actual Variance SBD SBD 11SBD Amount % CASH INFLOWS (i) Proceeds from Credit DA Funds (6633 SB) 9,762,473 43,500 9,718,973 100% (ii) Proceeds from IDA Funds (D6280-SB) 805,786 3,047,537 (2,241,751) -278% (iii) Proceeds from Trust Funds (TFB 8365) 2,658,814 10,055,816 (7,397,002) -278% (iv) Proceeds from IDA Funds (E0250) 2 617,462 9,899,421 (7,281,959) -278% (v) Other receipts- Bank Interest - 1,507 (1,507) -100% TOTAL RECEIPTS 15,844,535 23,047,781 (7,203,246) -45% CASH OUTFLOWS Component 1: Emergency Covid 19 Preparedness and Response PPE's Laboratory Consumables - 31,326 (31,326) 100% Contractual Workers 662,929 612,023 50,906 8% Operational Expense for the Response Effort Including GBV 722,700 841,117 (118,417) -16% Support to COVID 19 Vaccines Deployment - 12,999 374 (12,999,374) 100% SUB TOTAL 1,385,629 14,483,840 13,098,211 945% Component 2: Health System Strengtening Renovation of 2 Provincial Hospitals 7,628,500 23,000 7,605,500 100% Incenerators - 2,479,025 (2,479,025) -100% Refurbish of National Health Emergency Centre (NHEOC) 1,606,000 - 1,606,000 100% Refurb,shment of National Medical Stores 2,409,000 2,258,048 150,952 6% Training (IPC,GBV, Waste Management, Surveillance Warehouse 1,373,130 327,501 1,045,629 76% New TA for Design and Supervision - 776,632 (776,632) -100% Risks Survey - 380,410 (380,410) -100% SUB TOTAL 13,016,630 6,244,616 (6,772,014) -52% Component 3: Project Implementation Management Project manager 209,190 555,184 (345,994) -165% Procurement officer 173,769 136,796 36,973 21% Financial management officer 173,769 245,421 (71,652) 41% Monitoring and evaluation officer 173,769 139,789 33,980 20% Deployment of enviroment, social and health and safety and commUnity 184,681 (10,912) -6% enqagement (ESHS & CE) officer (full time) 173,769 Deployment of International enviromental, social and health and safety and (264,978) -330% community engagement (ESHS & CE) specialist (part- time) 80,300 345,278 Deployment of GBV specalist (as needed basis) 16,060 - 16,060 100% Payment of audit fees 80,300 170,000 (89,700) 0% Office setup and mobilization - 271,344 (271,344) -100% Monitorin and evaluation 361,350 532,250 (170,900) -47% TOTAL 1,442,276 2,580,743 (1,138,467) -79% TOTAL PROJECT PAYMENTS 15,844,535 23,309,199 7,464,664 47% NET CASH FLOWS - {261,418) 261,418 WORLD BANK COVID 19 EMERGENCY RESPONSE PROJECT GRANT NOs. D6280-SB, TF018365, E0250, CREDIT NO.6633-SB RECONCILIATION BETWEEN FUNDS DISBURSED BY THE WORLD BANK AND FUNDS RECEIVED BY COVID 19 EMERGENCY RESPONSE PROJECT FOR THE PERIOD FROM 1ST JANUARY 2023 TO 31ST DECEMBER 2023 2023 _____ ____ TYPE OF DISBURSEMENT ___ AMOUNT FUNDS DISBURSED BY THE WORLD BANK FOR 2023: USD SBD WB Credit - 6633-58 WACII DESIGNATED ACCOUN 1,681.20 s12 50000 WAC12 DESIGNATED ACCOUNT G22.67 $5000 00 WB Grant - D6280SB WAG14 DESIGNATED ACCOUNT 24,494 77 010000301 WAG15 DESIGNATED ACCOUNT 10,362 77 S83,21306 WAGIS DESIGNATED ACCOUNT 183,47995 $1 473,344 01 WAG17 DESIGNATED ACCOUNT 56,104 96 5450.52285 WAG18 DESIGNATED ACCOUNT 9,68601 77,7769 WAG20 DESIGNATED ACCOUNT 33,9.75 $272.96979 WAG21 DESIGNATED ACCOUNT 10,9596 $820293 WRBI0A -E0250 WAEO5 DESIGNATED ACCOUNT 77,340.26 $621 042.26 WAE06 DESIGNATED ACCOUNT 647,418,06 $5.198 767,15 WAE07 DESGNATED ACCOUNT 88,301.97 $70906479 WAE08 DESIGNATED ACCOUNT 129,603.53 S1,040.716 34 WAE09 DESIGNATED ACCOUNT 57,989,36 5465,65457 WAE10 DESIGNATED ACCOUNT 50,16651 $402,837 05 VAE11 DESIGNATED ACCOUNT 46,28461 0371,66700 WB HEPRTF 8365 TFBO4 DESIGNATED ACCOUNT 33,058.41 026040902 TFBO5 DESIGNATED ACCOUNT 327,865.20 $2,632,75756 TF307 DESIGNATED ACCOUNT 370,956.59 $2,978781.40 TFBO8 DESIGNATED ACCOUNT 140,692.72 01 129 76252 TFBO9 DESIGNATED ACCOUNT 47,405.35 03065493 TFBIl DESIGNATED ACCOUNT 203,985.06 s1,63800000 TF813 DESIGNATED ACCOUNT 296,88683 0234,00122 TF814 144,544A7 01160,69200 TOTAL FUNDS DISBURSED BY THE WORLD BANK IN 2022 2,993,887-76 68 LESS FUNDS AT CENTRAL BANK Account No: 20366 WORLD BANK COVID-19 EMERGENCY RESPONSE PROJECT ACCOUNT WEI Credit - 6633-SB WACI12 DESIGNATED ACCOUNT 622.67 5,000 WB Grant - D6280-SB WA1.20 DESIGNATED ACCOUNT 33,993.75 272,970 WAG21 DESIGNATED ACCOUNT 10,962.56 88,029 WA IDA - E0250 WAEl 2 DESlGNATED ACCOUNT 46,284.81 371,667 WB HEPRTF -8365 TFB13 DESIGNATED ACCOUNT 296,886.83 2,384,001 TFB14 DESIGNAIED ACCOUNT 144,54447 1,150,692 TOTAL 533,295 08 4,282,359 ADD FUNDS SENT BY WORLD BANK IN 2022 AND RECEIVED BY PROJECT IN 2023 WB Credit - 6633-SB WAC10 DESIGNATED ACCOUNT 3,735,99 30,000 WA Grant- D6280- SB WAG]3 DESIGNATED ACCOUNT 70,225.06 563,907 WAG13 DESIGNATED ACCOUNT 25,105 45 202,079 WJB IDA - E 2 50 WAE4 DESIGNATFD ACCOUN 1 191,994085 1,461,338 WB HE PRTF -930946 TB02 DESIGNATED ACCOUNT 97,184.35 780,390 TBO3 DESIGNATED ACCOUNT 31,13.25 250,000 TOTAL - 09,428.95 3,287,714 TOTAL RECEIPTS BY COVID 19 EMERGENCY RESPONSE PROJECT IN 2023 AS PER FINANCIAL REPORT 2,460,592 68 23,046,274