REPUBLIC OF KENYA AGWN OFFICE OF THE AUDITOR-GENERAL Enhancing Accountability REPORT OF THE AUDITOR-GENERAL ON AFFORDABLE HOUSING FINANCE PROJECT (IDA CREDIT NO.8958-KE) FOR THE YEAR ENDED 30 JUNE, 2022 THE NATIONAL TREASURY 늴∼ 닛／ 노닒궂 /, 【＼ I &/ AFFORDABLE HOUSING FINANCE PROJECT THE NATIONAL TREASURY (RESOURCE MOBILISATION DEPARTMENT) PROJECT CREDIT NUMBER: IBRD CR.8958-KE ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED JUNE 30,2022 Prepared in accordance with the Cash Basis of Accounting Method under the International Public Sector Acco nting Standards (IPSAS) THE NATIONAL TREASURY Affordable Housing Finance Project Annual Report and Financial Statements for the financial year ended June 30, 2022 11 THE NA IONAL TREASURY Affordable IHonsing Finance Project Annual Repor and Financial Statements for the financial year ended June 30, 2022 Table Contents 1. Pro ect information and Overall Performance.......................................................................................... iv 2. Statement of Performance against Project's Predetermined Objectives...................................................ix 3. Environmental and Sustainability reporting ............................................................................................. ix 4. Statement of Project Management responsibilities.................................................................................... x 5. Report qf the Auditor General on Affordable Housing Finance Project................................................. xii 6. Statemept of Receipts and Payments for the year ended 30th June 2022..................................................1 7. Statemert of Financial Assets as at 301 June 2022..................................................................................2 8. Statement of Cashflow for the year ended 30t June 2022 ........................................................................3 9. Statement of Comparison of Budget and Actual amounts for the year ended 30' June 2022...................4 10. Significant A ccounting Policies ................................................................................................................5 11. N otes to the Financial Statem ents............................................................................................................ 11 12. Pricr Year Auditor-General's Recommendations ...................................................................................16 13 . A n r em e ................................................................................................................................................... 1 7 13. Anexe~.1 Ii THE NATIONAL TREASURY Affordable Housing Finance Project Annual Report and Financial Statements for the financial year ended June 30, 2022 1. Project Information and Overall Performance 1.1 Name and registered office The project's official name is Affordable Housing Finance Project Objective The key objective of the project is to expand access to affordable housing to targeted beneficiaries. Address The Project Headquarters' location and contacts is as below: P.O. Box 30007- 00100, Treasury Building, Harambee, Avenue NAIROBI, KENYA Telephone: (254)020-2252299 Email: info@treasury.go.ke Website: www.treasury.go.ke The project does not have other offices or branches. Project information and overall performance 1.2 Project Information Project Start Date: 5th December 2019 Project End Date: 30th June 2024 Project Manager: Mr Patrick Macharia Project Sponsor: International Bank for Reconstruction and Development (IBRD) 1.3 Project Overview Line Ministry/State The project is under the supervision of the National Treasury Department of the project Project number Loan No. 8958-KE iv THE NA IOAAL TREASURY Affordabl? Ilo ising Finance Project Annual R epon and Financial Statements for the financial year ended June 30, 2022 Strateg i goals of the project The strategic goals of the project are as follows: (i) Provision of financing to Kenya Mortgage Refinancing Company (KMRC) to be utilized as a line of credit for providing the mortgage refinancing to Eligible Participating Financial Institutions (ii) Provision of Technical Assistance to the implementing entities Achieveme it of strategic The project management aims to achieve the goals through the goals following means: (i) Provision of line of credit to KMRC for onward lending to Primary Mortgage Lenders (PMLs) (ii) Capacity building for implementing entities and development of relevant policy documents Other i portant background N/A information of the project Current siuation that the The project was formed to intervene in the following areas: project was formed to pret (i) Offer long term mortgage financing at fixed rates intervene Project duration The project started on 5th December 2019 and is expected to run until 30f June 2024 1.4 Bankers Central Bank of Kenya Haile Selassie Avenue P.O. Box 60000 City Square 00200 NAIROBI, KENYA 1.5 Auditors The Auditor General Office of the Auditor General P.O Box 30084 - 00100 NAIROBI, KENYA v THE NATIONAL TREASURY Affordable Housing Finance Project Annual Report and Financial Statements for the financial year ended June 30, 2022 Project Information and Overall Performance (Continued) 1.6 Roles and Responsibilities Dr Julius Muia, Principal Secretary Doctorate Accounting Officer PhD), CBS The National Treasury Patrick Macharia Project Coordinator Bachelor Degree Oversee project implementation Christine Dambya Project Accountant Bachelor Degree Ensure optimal use of project resources and accountability Danae Ottaro Project Procurement Bachelor Degree Guide in procurement Specialist processes 1.7 Funding summary The Project is for duration of 5 years from 2019 to 2024 with an approved budget of Euro.8.8 million equivalent to Kshs. 1 billion as highlighted in the table below: vi i ' I , � ! о о i о�о о�о � � и и �--i м М ~ � � � � � � � � � � °о оо о о оо оо � � � � оо ао й �°о с� с� � � м М �р �р r-, й Й � � с� N N N � � и и о о о о си с� °о °о о о со� eov й �°с с� cv � � �v о о м м N ' � � N N � О О м О О � О О '� � О О � � г'" '"'i О О р О О д р С � О О О О � р О О N N п, � � �� v ооо Оо0 � Я оо 00 � � � � � � � �„ '�+" у О й Св .+-^"+ у о О � U � i�. U й О .�? � � � ^� О ь�. �'С� р � �Г? �� W w � � � о � О р � � Q' �� Я г7Д "j3 �" � р 4� � � � � W �У � О �' с° ,_, �" р � h � � � � х � � � � � � � � �н � N .v р � � О � ° `� ,� р � а �+ о � ° � F' � � � `Е' и о о ш д" � � � � �� � ,� 3 � � °' � � � д �г '," ° О ��� а аа � � � � �д � � Н � � � i � � THENATIONAL TREASURY Affordable Housing Finance Project Annual Report and Financial Statementsfor thefinancial year ended June 30, 2022 Project information and overall performance (continued) 1.8 Summary of Overall Project Performance: i) Budget performance against actual amounts for current year and for cumulative to-date. Kenya Affordable Housing Finance Project is funded by International Bank for Reconstruction and Development (IBRD). During FY 2021-2022 the Project had a budget of Kshs.200 million with an actual expenditure of Kshs.20,512,676. (10%). ii) Physical progress based on outputs, outcomes, and impacts since project commencement: Provision of long term and affordable mortgages iii) Comment on value-for-money achievements: Provision of long term and affordable mortgages iv) Indicate the absorption rate for each year since the commencement of the project. 4FINANCIAL YEAR ABSORPTION RATE 2021-2022 10% v) List the implementation challenges and recommended way forward: Emergence of COVID- 19 affected the housing sector in terms of creation of mortgage portfolios 1.9 Summary of Project Compliance: i) The project has complied to all applicable laws and re ulations. 9 All relevant statutory provisions pertaining to budgeting, disbursement, financial reporting and procurement as stipulated in the relevant Acts were followed in the acquisition of goods and services ii) There have never been any consequences which the project has suffered since all the rules and regulations have been complied. iii) The mitigation measures taken are sensitization of the staff on the applicable laws and indicating the consequences they can face in not abiding to the regulations. THE NA 1AL TREASURY Affordabi Fousing Finance Project Annual Repor and Financial Statements for the financial year ended June 30, 2022 2. Statement of Performance against Project's Predetermined Objectives In roduction Section I1 (2) (f) of the Public Finance Management Act, 2012 requires that, at the end of each financial year, the Accounting Officer when preparing financial statements of each National Government entity in accordance with the standards and formats prescribed by the Public Sector Account ng Standards Board , includes a statement of the national government entity's perform nce against predetermined objectives. The key development objectives of the project's agreement/plan are to: a) he key objective of the project is to expand access to affordable housing to targeted beneficiaries Progress on attainment of strategic development objectives For purpose3 of implementing and cascading the above development objectives to specific sectors, all t he development objectives were made specific, measurable, achievable, realistic and time-bu d (SMART) and converted into development outcomes. Attendant indicators were identifie1 fol reasons of tracking progress and performance measurement. Below we pr vide the progress on attaining the stated objectives: Affordable To expand access Increased access Number qoflIn the FY 21/22, Housing Fin nce to affordable to long term people accessing we provided long Project housing to affordable long term targeted affordable term and beneficiaries mortgages affordable mortgages 3. Environmental and Sustainability reporting Affordable Housing Finance Project did not take part in Corporate Social Responsibility during the year. ix THE NATIONAL TREASURY Affordable Housing Finance Project Annual Report and Financial Statements for the financial year ended June 30, 2022 4. Statement of Project Management responsibilities The Principal Secretary for the National Treasury and the Project Manager for Affordable Housing Finance Project are responsible for the preparation and presentation of the Project's Financial Statements, which give a true and fair view of the state of affairs of the Project for and as at the end of the financial year (period) ended on June 30, 2022. This responsibility includes (i) Maintaining adequate financial management arrangement and ensuring that these continue to be effective throughout the reporting period, (ii) Maintaining proper accounting records, which disclose with reasonable accuracy at any time the financial position of the project, (iii) Designing, implementing and maintaining internal controls relevant to the preparation and fair presentation of the financial statement, and ensuring that they are free from material misstatements, whether due to error or fraud,(iv) safeguarding the assets of the project, (v) Selecting and applying appropriate accounting policies and (v) Making accounting estimates that are reasonable in the circumstances. The Principal Secretary for the National Treasury and the Project Manager for Affordable Housing Finance Project accept responsibility for the Project's financial statements, which have been prepared on the Cash Basis Method of Financial Reporting, using appropriate accounting policies in accordance with International Public Sector Accounting Standards. The Principal Secretary for the National Treasury and the Project Manager for Affordable Housing Finance Project are of the opinion that the Project's financial statements give a true and fair view of the state of Project's transactions during the financial year/period ended June 30, 2022, and of the Project's financial position as at that date. The Principal Secretary for the National Treasury and the Project Manager for Affordable Housing Finance Project further confirm the completeness of the accounting records maintained for the Project, which have been relied upon in the preparation of the Project financial statements as well as the adequacy of the systems of internal financial control. The Principal Secretary for the Ministry of the National Treasury and the Project Manager for Affordable Housing Finance Project confirm that the Project has complied fully with applicable x THE NA TIONAL TREASURY Affordable 4lousing Finance Project Annual Repor t adFnnilSaetnsothfnnayarned June 30, 2022 Governeill Regulations and the terms of external fmnancing covenants, and that Project funds receivec during the financial year/period under audit were used for the eligible purposes for which they were in ended and were properly accounted for. Approv1 of the Project Financial Statements The Pro ects Financial Statements were approved by the Principal Secretary for the National Treasury and the Project Manager for Affordable Housing Finance Project on 2022 and signed by them. ulius . Muia, PhD, CBS я. и с� ^О г/� ti г�л � � р�., > �' � � U О и и W •� .й о Г-� ¢' � '� � А � � � � '� � � W и ^ � • а Сб � 'г3 �.+ N•й � � у О о � U �2, •� � i. и bA Е� О � � ,�; �с �'' о ь°д д �=+ � � й .� h �v ы •н+ и � '� +и+ й О � � •� • � С/� �'р „О д�ч � +.+ О и с> � � � �С й р : �i "•" .. �С '� � С.� с��., � � с> а� � Г � U I � � jт1 О � � •V � � .� � � � Gб CL � и '�'� � � "L" � � � � � � '� 0 .з' � : ."". ..�"". G� Н�� Г� а а, Е•� а, v а Н гr� �, :� а, Е•�� � i' i' 1' ; � THE NATIONAL TREASURY Affordable Housing Finance Project Annual Report and Financial Statementsfor thefinancial year ended June 30, 2022 7. Statement of Financial Assets as at 301 June 2022 ----------------- -------------- Financial Assets Cash and Cash equivalents Bank Balances 11.4 4,851,584 Cash Balances Cash equivalents (Short-term deposits) Total Cash and Cash equivalents 4,851,584 Total Financial Assets 4,851,584 Financial Liabilities Net Assets Represented By Fund Balance B/fwd. 11.6 Prior Year adjustments Surplus/(Deficit) for the Year 4,851,584 Net Financial Position 4,851,584 The accounting policies and explanatory notes to these Financial Statements form an integral part of the financial statements. The Financial Statements were approved on 2022 and signed by: ... ....................... .............. .......... ................. ..... . .... ....... ...... AJiu M. Muia, PhD, CBS Patrick aachariaa Christine C. Dambya Principal Secretary Project Manager Principal Accountant The National Treasury 1CPAK Member No. 3')L 2 THE N TIO AL TREASURY Afforda le H using Finance Project Annual epo t and Financial Statements for the financial year ended June 30, 2022 8. Statement of Cashflow for the year ended 3011 June 2022 Cashflo f om operating activities Receipt 11.1 25,364,260 Total r cei ts Payme ts Compen ation to Employees 11.2 (3,850,000) Purchas of oods and services 11.3 (16,662,676) Total P ym uts (20,512,676) Adjust ent during the year Prior ye adjustments Decrease (in rease) in accounts receivable Increase/ dec ease) in accounts payable: Net cash flow from operating activities 4,851,584 Cash flo from financing activities Net cash o from financing activities Net incre se i cash and cash equivalents 11.4 4,851,584 Cash an cash equivalent at beginning of the year . Cash an cash equivalent at end of the year 4,851,584 The acco tiOg policies and explanatory notes to these Financial Statements form an integral part of th Financial Statements. The Affordable Housing Finance Projects' Financial Statements were appr ve: on 2022 and signed by: Ju s M Iia, PhD, CBS Patrick Macharia Christine C. Dambya Princip Secretary Project Manager Principal Accountant The Nationa Treasury ICPAK Member No. 3 i о о о о � `'` м М О О � r1 � �"� vi �--� �ч � N � � М М � �О � д� `� � �'i U � .�-i �-�i � �"� � �-.Г) . гн / W Сб � О � � � Z С �,,, ° о `�° � о � : А ��' N N �U �О И � U � � � � ��•1 И � � V �i � м М и И 00 � G� �� Й Й О О � � ��.' �,/ N N N N � ' � ,я'' � .,r �, N � � ' о � U Гi� � N � • ..� а� о о °о °о '� � о о о о Q, � °о о °о °о � о о о � м о о о о � "t3 oN N N N � � � � � О i., U �б � � � � � cNy а� � .:б �. N +�-+ r'�-+ С�С bA �б ° р •� V � � М г'i"i и � � � � � к U � � �р О о О О д.�, • v � � Г„ р р О О � � �•� о� � О о О О ;..� С Сб О о О О � � i�-1 � у О � _ ti U О О О О � � � ON го�l oN N � сб � v � � � � � � s." д.+ � � � � .� � о � � � '� '� �Q � й w .� o�i р Р-� '� °�'' °+.,' � й � г. `" •и � bA w � г�, � s, о о � V � � � � � � � � �А � гу гу t j д °�' `�' : а' �� tr ои .� �►• � я.' и � ?� : е� i F�"., ьJ •� � � N р U ь�+ Ен Я � V �.н � � � � с �„ U � с�, д •� � � i о W � � � � v� � ; � � � � о О�J а� � й и Ч� и�, о °' :'�•, '�Сб � � � LL' � ,й О � Ly � °'� R 'л (� .�1" С� ... Q�^, Сб О. �н а � N и� � � U Zi �' '� � г%1 'а� � е�б �" � '� а i�r ��,, ... .Я у � � � �., � Q � Г� а Е�-� А; а С7 Е� й � .� а� Ëi TWEN,,iTIO]VAL TREASURY Kenya A.Iford#hle Housing project AnnualRepor" and Financial Statementsfor thefinancialyear ended June 30, 2022 10. Significant Accounting Policies The prir civjiil accounting policies adopted in the preparation of these Financial Statements are set out below: 10.1 tatement of compliance and basis of preparation The Fin nci41 Statements have been prepared in accordance with Cash-basis IPSAS financial reportin- un der the cash basis of accounting, as prescribed by the PSASB and set out in the accounting policy note below. This cash basis of accounting has been supplemented with accounting t r; a) receivables that include imprests and salary advances and b) payables that include deposits and retentions. The Financial Statements comply with and conform to the form of presentation prescribed by the PSASB. The accounting policies adopted have been consistently applied to all the years presented. 10.2 Reporting entity The Financial statements are for Affordable Housing Project under the National Treasury. The Financia Statements are for the reporting of Affordable Housing Finance Project as required by Section 8 1 of the PFM Act, 2012. 10.3 Reporting currency The Financial Statements are presented in Kenya Shillings (Kshs), which is the functional and reporting currency of the Project and all values are rounded to the nearest Kenya Shilling. 10.4 Recognition of receipts Affordable " ousing Finance Project recognises all receipts from the various sources when the event occurs, and the related cash has actually been received. Transfers from the Exchequer Transfer from Exchequer is recognized in the books of accounts when cash is received. Cash is considered 0 received when payment instruction is issued to the bank and notified to the receiving entity. ii) External Assistance External assistance is monies received through grants and loans from multilateral and bilateral developni ent Oartners. 5 THE NATIONAL TREASURY Kenya Affordable Housing Project Annual Report and Financial Statements for the financi al year ended June 30, 2022 Significant Accounting Policies (Continued) iii) Other receipts These include Appropriation-in-Aid and relates to receipts such as proceeds from disposal of assets and sale of tender documents. These are recognized in the financial statements at the time associated cash is received. iv) Donations and grants Grants and donations shall be recognized in the books of accounts when cash is received. Cash is considered as received when a payment advice is received by the recipient entity or by the beneficiary. In case of grant/donation in kind, such grants are recorded upon receipt of the grant item and upon determination of the value. The date of the transaction is the value date indicated on the payment advice. v) Proceeds from borrowing Borrowing includes external loans acquired by the Project or any other debt the Project may take and will be treated on cash basis and recognized as a receipt during the year they were received. vi) Undrawn external assistance These are loans and grants at reporting date as specified in a binding agreement and relate to funding for the Project currently under development where conditions have been satisfied or their ongoing satisfaction is highly likely and the project is anticipated to continue to completion. An analysis of the Project's undrawn external assistance is shown in the funding summary. 10.5 Recognition of payments The Project recognises all payments when the event occurs, and the related cash has actually been paid out by the Project. i) Compensation to employees Salaries and Wages, Allowances, Statutory Contribution for employees are recognized in the period when the compensation is paid. ii) Use of goods and services Goods and services are recognized as payments in the period when the goods/services are consumed and paid for. If not paid for during the period where goods/services are consumed, they shall be disclosed as pending bills. 6 THE NA TIONAL TREASURY KenYa Affoidable Housing Project Annual Rport and Financial Statements for the financial year ended June 30, 2022 Significant Accounting Policies (Continued) iii) Interest on borrowing Borrowing costs that include interest are recognized as payment in the period in which they incur and paid for iv, Repayment of borrowing (principal amount) The rep ymnt of principal amount of borrowing is recognized as payment in the period in which t e repayment is made. The stock of debt is disclosed as an annexure to the consolidated financial statements. v) Acquisition of fixed assets The paynaent on acquisition of property plant and equipment items is not capitalized. The cost of acquisition apd proceeds from disposal of these items are treated as payments and receipts items respecti ly. Where an asset is acquired in a non-exchange transaction for nil or nominal consideration and the fair value of the asset can be reliably established, a contra transaction is recorded as r ceipt and as a payment. A fixed asset register is maintained by each public entity and a summary provided for purposes of consolidation. This summary is disclosed as an annexure to the consolidated financial statemen s. 10.6 In-kind donations In-kind contributions are donations that are made to the Project in the form of actual goods and/or s rvices rather than in money or cash terms. These donations may include vehicles, equipme t or personnel services. Where the financial value received for in-kind contributions can be re liably determined, the Project includes such value in the statement of receipts and payments both as receipts and as payments in equal and opposite amounts; otherwise, the contribution is not recorded. 10.7 Cash and cash equivalents Cash and casl equivalents comprise cash on hand and cash at bank, short-term deposits on call and highly liquid investments with an original maturity of three months or less, which are readily convertib e to known amounts of cash and are subject to insignificant risk of changes in value. Bank account balances include amounts held at the Central Bank of Kenya and at various commercial b4nks at the end of the financial year. 7 THE NATIONAL TREASURY Kenya Affordable Housing Project Annual Report and Financial Statements for the financial year ended June 30, 2022 Significant Accounting Policies (Continued) For the purposes of these financial statements, cash and cash equivalents also include short term cash imprests and advances to authorised public officers and/or institutions which were not surrendered or accounted for at the end of the financial year. 10.8 Restriction on cash Restricted cash represents amounts that are limited/restricted from being used to settle a liability for at least twelve months after the reporting period. This cash is limited for direct use as required by stipulation. Amounts maintained in deposit bank accounts are restricted for use in refunding third part deposits. 10.9 Imprests and Advances For the purposes of these financial statements, imprests and advances to authorised public officers and/or institutions which were not surrendered or accounted for at the end of the financial year is treated as receivables. This is in recognition of the government practice where the imprest payments are recognized as payments when fully accounted for by the imprest or ATE holders. This is an enhancement to the cash accounting policy. Other accounts receivables are disclosed in the financial statements. 10.10 Contingent Liabilities A contingent liability is: a) A possible obligation that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity; or b) A present obligation that arises from past events but is not recognised because: i) It is not probable that an outflow of resources embodying economic benefits or service potential will be required to settle the obligation; or ii) The amount of the obligation cannot be measured with sufficient reliability. Some of contingent liabilities may arise from: litigation in progress, guarantees, indemnities. Letters of comfort/ support, insurance, Public Private Partnerships, 8 THE NA 'IOINAL TREASURY Kenya Aford ble Housing Project AnnutalReo t and Financial Statemtents for the finan cial year ended June 30, 2022 Signific nt Accounting Policies (Continued) Afforda le -lousing Finance Project does not recognize a contingent liability but discloses details cf any contingencies in the notes to the financial statements unless the possibility of an outflow ofresources embodying economic benefits or service potential is remote. 10.11 Contingent Assets Affordable ousing Finance Project does not recognize a contingent asset, but discloses details of a pos ibl asset whose existence is contingent on the occurrence or non-occurrence of one or more uncert in future events not wholly within the control of Affordable Housing Finance Project in the notes to the financial statements. Contingent assets are assessed continually to ensure that developments are appropriately reflected in the Financial Statements. If it has become virtually certain that an inflow of economic benefits or service potential will arise and the asset's value can be 'measured reliably, the asset and the related revenue are recognized in the Financial Statemerts o the period in which the change occurs. 10.12 Pending bills Pending bills consist of unpaid liabilities at the end of the financial year arising from contracted goods or services during the year or in past years. As pending bills do not involve the payment of cash in tl e reporting period, they recorded as 'memorandum' or 'off-balance' When the pending bills are inally settled, such payments are included in the statement of receipts and payments in the year in which the payments are made. 10.1 Budget The budget is developed on a comparable accounting basis (cash basis), the same accounts classifica ion basis (except for accounts receivable - outstanding imprest and clearance accounts and accounts payable - deposits, which are accounted for on an accrual basis), and for the same period as the financial statements. The Project's budget was approved as required by Law and National Trea sury Regulations, as well as by the participating development partners, as detailed in the Government of Kenya Budget Printed Estimates for the year. The Development Projects are budgeted for under the MDAs but receive budgeted funds as transfers and account for them separately. These transfers are recognised as inter-entity transfers and are eliminated upon consolida ion. A high-level assessment of the Project's actual performance against the 9 THE NATIONAL TREASURY Kenya Affordable Housing Project Annual Report and Financial Statements for the financial year ended June 30, 2022 comparable budget for the financial year/period under review has been included in an annex to these financial statements. 10.14 Third party payments Included in the receipts and payments, are payments made on its behalf by to third parties in form of loans and grants. These payments do not constitute cash receipts and payments and are disclosed in the payment to third parties' column in the statement of receipts and payments. During the year, Kshs Nil being loan disbursements were received in form of direct payments from third parties. 10.15 Exchange rate differences The accounting records are maintained in the functional currency of the primary economic environment in which the Project operates, Kenya Shillings. Transactions in foreign currencies during the year/period are converted into the functional currency using the exchange rates prevailing at the dates of the transactions. Any foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the statements of receipts and payments. 10.16 Comparative figures Where necessary comparative figures for the previous financial year/period have been amended or reconfigured to conform to the required changes in financial statement presentation. 10.17 Subsequent events There have been no events subsequent to the financial year/period end with a significant impact on the financial statements for the year ended June 30, 2022. 10.18 Prior period adjustments Prior period adjustments relate to errors and other adjustments noted arising from previous year(s). 10 THE NA IONAL TREASURY Kenya A/Jordable Housing Project AnaReport and Financial Statements for the financial year ended June 30, 2022 11. Notes to the Financial Statements 11.1 Loan from External Development Partners During the inancial period to 30 June 2022, the project funding from International Bank for Reconstruct on and Development (IBRD) is as detailed in the table below: Internationual Bank for Reconstruction and 14.02.2022 200,000 25,364,260 - 25,364,260 Development Total 14.02.2022 200,000 25,364,260 - 25,364,260 11.1 Compensation to Employees Kshs Kshs Kshs Kshs Kshs Basic wages ftemporary2,2,92876628766 employees2,2,9-2,2,9- 28766 Pay As ou arn 980,504 - 980,504 - 980,504 Compulsry National social 37,400 37,400 seurity chemes 3,0 740- 3,0 Compuls ry ational health 4,400 4,400 insurance schemes Total 3,850,000 - 3,850,000 - 3,850,000 11 THE NATIONAL TREASURY Kenya Affordable Housing Project Annual Report and Financial Statements for the financial year ended June 30, 2022 Notes to the Financial Statements (Continued) 11.3 Purchase of Goods and Services Kshs Kshs Kshs Kshs Kshs Printing, advertising, and 530,700 530,700 530,700 information supplies Payment of Workshop & 5,355,610 5,355,610 Conference Training payments 10,776,366 10,776,366 10,776,366 Total 16,662,676 16,662,676 16,662,676 11.4 Cash And Cash equivalents Bank accounts 4,851,584 Cash in hand Cash equivalents (short-term deposits) Total 4,5 1584 - Affordable Housing Finance Project has one project account spread within the project implementation area and one number of foreign currency designated account managed by the National Treasury as listed below 12 THE NATIONAL TREASURY Kenya A ordqble Housing Project Annual epoj t and Financial Statements for the financial year ended June 30, 2022 Notes t th Financial Statements (Continued) 1.4 A Bank Accounts Project Ba k Accounts Central Ban of Kenya [A/c No. 1000442228] Total Foreigp Currency balances Local Curre c Accounts Central Bank of Kenya [A/c No. 1000528885] 4,851,584 Total local c rrency balances 48184 Total bank ccount balances 4851,584 Special Dep sit Accounts The bala ces in the Project's Special Deposit Account(s) as at 30th June 2022 are not included in the Statemen of Financial Assets since they are below the line items and are yet to be drawn into the Exchequer Account as a voted provision. Below is the Special Deposit Account (SDA) movement schedule which shows the flow of funds that were vot d in the year. These funds have been reported as loans/grants received in the year under the Statement of Receipts and Payments. Special Deo sit Accounts Movement Schedule (i) Aff rd ble Housing Finance Project [1000442228] Opening bal nce Total am unt deposited in the account 25,364,260 Total am un withdrawn (as per Statement of Receipts & 0 Pa ment ) Closing alance (as per SDA bank account reconciliation attache 13 THE NATIONAL TREASURY Kenya Affordable Housing Project Annual Report and Financial Statements for the financial year ended June 30, 2022 Notes to the Financial Statements (Continued) 11.5 Imprests and Advances Government Imprests Total 11.5 B: Breakdown of Imprests and Advances Kshs Kshs Kshs Kshs Kshs Patrick Machara 522,567 30.06.22 522,567 Christine Dambya 522,567 30.06.22 522,567 Danae Ottaro 522,567 30.06.22 522,567 Peter Njoroge 659,468 30.06.22 659,468 David Komen 659,468 30.06.22 659,468 Joshua Lodugokiok 446,510 30.06.22 446,510 Kenrick Ayot 522,567 30.06.22 522,567 Erick Wambua 522,567 30.06.22 522,567 Scolastica Chepkoech 446,510 30.06.22 446,510 Olive Gitau 659,468 30.06.22 659,468 Karen R. Chelimo 522,567 30.06.22 522,567 Abigael K. Masinde 446,510 30.06.22 446,510 Huka A. Mamo 446,510 30.06.22 446,510 Mercy Cherotich 446,510 30.06.22 446,510 Monica M. Mulongo 446,510 30.06.22 446,510 Total 7,792,867 7,792,867 14 THEN TIONAL TREASURY KenyaA ordble Housing Project Annual eport and Financial Statements for the financial year ended June 30, 2022 Notes to th Financial Statements (Continued) 11.6 Fund Balance Brought Forward Bank aceount Cash in h, nd Outstandin gi prests and advances Total 15 �" �г-1 М г�Л д - ; Z � � � Z � � � � � � А �� , й � д� т. о а U а� ¢ � z � �, ; ... �. � N : � � � N : � � о � М � � д U � ..Vi б� '� ��.+ �О � � � а а � о � О � � z �� � � С "о 'с� � � � -._ � � д w v � а � � и � д" � � � � • г/� т .„ а� а а' �` � Z U '�-' гл�� ;° А о W�� � р�., � � ��� � � � �" � ,� � �. � � ci � , � � � � о � � � р о`�°' о � � �� � � � Z 2� ез � � � z �j �, � а � � .� � , � � . о �. � � � � г.i �, а Е� � [ . . ,,',,. i '. '�,, '�, ,,,',,. 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О :. и � U `'�`� L'. р � s.N, 'Ч � ..� � й � "�' MСб у � 'А, �1Q%' � µ� и ^�у' � � о .-. и о i .�,� д � � � j � � гу ё � � •� � ; � v а� с� Q•� С Cr 4-i 'U О V � Г� �о �L V1 � о N � � ' h х"� s. � a�i д � 1 � о С: .� tн � с� � � �� о О � � ш � � � � ti`� � c�i U Г� й Н ' W �� � ... .� н � i Н�� � � B A I RA e A.' I Halle Selnssie Avel-WIC P0. i3ox 60000 0200 e!Cj),)Cji1C: 26f,00( 0 ax: '1410W.? July 18, 2022 CERTIFICATE OF BALANCES C ustomer: 100094 & 120373 THE NATIONAL TREASURY Balance ate: 30-Jun-22 Accc unt No Account Name Currency Balance 77 TREASURY BILLS ACCOUNT KES 0-00 1,000D0088 TREASURY BONDS ACCOUNT KES 0.60 1000y010)96 REVENUE DEPOSIT ACCOUNT KES 7,545,798,662.81 1:000 D04 )53 TREASURY BONDS REDEMPTION KES 0.00 i.00000 4)61 TREASURY BONDS INTEREST KES 32.41 1000004)88 TREASURY BILLS REDEMPTION SUSP- K-ES 0-00 1,00018,1167 REC-THE NATIONAL TREASURY KES 75,240,063-37 1000181664 DEV-THE NATIONAL TRJEASURY KES 5,154,047,595.05 '1000182 3, NATIONAL TREASURY K.ES 2,477,881,646-15 1-000 187506 1 MICRO FINANCE SEC SUP CR-CAP KES 90,491,999.30 BLDG I ;J 00020 924 VOLUNTARY PAY CUT KES 221,593,032.65 " f000204378 REC-PUBLIC DEBT KES 721,240,531.98 100020:4! -e 19 REC-SALARIES-ALLOWA MISC AND K-ES 4,768,208.15 NSSSFC j000205024 PETROLEUM DEVELOPMENT LEVY K-E S 3,264,319,323.60 FUND 1000221518 KENYA PETROLEUM TECHNICAL ASS KES 0.00 PROJ 000 31872 FINANCIAL SEC.SUPP.PRJ-IDA 56270-KE KES 103,406,612.35 [!0!00 368743 AFRICAN INSTITUTE FOR KES 17,127,569.60 REMITTANCES 10003,23876 A U OTHER INTERNAT. ORG SUBSC KES 3,458,035,205.96 FUND 1000349538. PPP PROJECT FACILITATION FUND KES 343,060,675.00 ACC. 0003 6 863 2 INFRASTRUCTURE FIN AND PUB PART KES 3,389,239.95 PRJ 1000409018 INFRAST FINANCE AND PPP-CAT. 2EEP KES 923,009,955.35 100044:7575 KEN. FINANCINGLOCALLY LED KES 65,108,215.75 CLIMATE i016534 GREEN CLIMATE FUND READINESS KES 30,731,629.00 PROJ 1000528885 AFFORDABLE HOUSING FINANCE PROJ KE S 13,896,393.65 1000528893 ADB: NATIONAL TREASURY CAPACITY KES 2,252,243.00 STRE 1000539135 EU KENYA COOPERATION AND KES 0.00 PARTNERSHI 1000537876 STATE OFF AND PUB OFF CAR LOAN KES 502,568,473.75 SCH Lawrence Rweria Joyce Nasieku Authorised Signatory Authorised Signatory Banking Services Division Banking Services Division REPUBLIC OF KENYA THE NATIONAL TREASURY AFFORDABLE HOUSING FINANCE PROJECT BANK RECONCILIATION STATEMENT PROJECT A/C NO.1000528885 2021/2022 FINANCIAL YEAR AS AT 30TH JUNE 2022 SHS SHS Bah ne as per Bank Certificate 13,896,393.65 LesE: - 1.Payne -its in cash Book not yet recorded in Bank Statement (9,044,810.00) Less: - 2.Receipls in Bank statement not yet re orde d in Cashbook 9 Add- (9,044,810.00) 1.Pa meits in Bank statement not yet recorded in Cashbook Add: - 2.Receipts in cash Book not yet recorded in Bank Statement Cash bool Balance 4,851,583.65 I certify th iat I have verified the Bank Balance in the Cashbook with the Bank statement and that the above Reconciliation is correct. SIGNATU & DATE DESIGNATION THI NATIONAL TREASURY AFFORDABLE HOUSING FINANCE PROJECT 2021/20:2 FINANCIAL YEAR DEPOSIT ACCOUNT ACC OUNT :1000528885 APPE NDI I PAY IENTS IN CASHBOOK NOT IN BANK STATEMENT AS AT 30TH JUNE 2022 TE VOUCHER No. PARTICULARS AMOUNT(KSH) 29/ 6/2022 47841 NATION MEDIA 265,350.00 29/0 5/2022 30636 TRANSFER TO KMRC 4,012,610.00 30/0 5/202 20161 LAKE NAIVASHA RESORT 1,343,000.00 30/0 5/22 41507 PAYF 44,568.35 30/0 /202 41507 NSSF 200.00 30/0 41507 NHIF 1,700.00 30/06/202, 41507 VICTORIA ACHILLAH 128,531.65 30/0/0 41359 ESAMI 2,983,500.00 30/06/2022 VAT 4,575.00 30/06/2022 NATION MEDIA 260,775.00 TOTALS 9,044,810.00 APPENDI XiI RECE PTS N BANK STATEMENT NOT IN CASHBOOK AS AT 30TH JUNE 2022 DATE RECEIPT NO. PARTICULARS AMOUNT(KSH) TOTALS APPE1NDIX II1 PAYME NTS IN BANK STATEMENT NOT IN CASHBOOK AS AT 30TH JUNE 2022 DATE CH/IB NO. PARTICULARS AMOUNT(KSH) TOTALS APPENDIX IV RECEI TS I CASHBOOK NOT IN BANK STATEMENT AS AT 30TH APRIL 2022 AMOUNT(KSH) DATE VOUCHER NO. PARTICULARS TOTALS I ％もが I一 I I 【一 I - 】 - I - 【 I I I I - I I I KENYA AFTO' DABLE HOUSING FINANCE PROJEC iSTATEN[Ef'iT P F SPECIAL (DESIGNATED) ACCOUNT RECONCILIATION. ;FOR THE YEA R ENDED 30 JUNE 2022 Cred it No.: I RD LOAN CREDIT N0.89580-KE (DA-B) Bank, Accoun No.: 1000442228 Ifeld with CENTRAL BANK OF KENYA NOTES AMOUNT AMOUN-F EURO EURO I Amount advanced by IDA 200,000.00 Less:.' 2 TotA mount d cumented 3 Out ndinga*unt to be documented 200,000-001 Represented by: 4 Endin S e: ial account Balance as as 30 June 2022 5 Amounts caimed but not credited as at 30 June 2022 6 Amounts witdraen and not claimed A200,OOO.00 7 Service Ch EScs (if not included in lines 5 and 6 above) 8 Interest eat ndd (i f included in Special Account) advance to Special Account Year ended 30 June 2022 Tota 200,000.00 i Disprcpancyb tivecn total appearing on line 3 and 9 Notes: I Explain the discr pancy e ween totals appearing on lines 3 and 9 above (e.c, amount due to be refunded to cover ineligible expenditures paid fron the Special/Designated Account) 2 Indicate if amount appearing on line 6 is eligible for financiang by IDA and provide reasons for not.claiming the expenditures AUTHORISED REPRESENTATIVE j RE SOURCE MOBILISATION DEPARTMENT DATE: 0 1 - 0 2-- I TI-IX NATIONAL TREASURY ! ；城曰 l 飞 } } { l、、一洲 ｝、一 { } l { l … { } { { { SPECIAL ACCOUNT STATEMENT For period ending 30th JUNE, 2022 Account No. 1000442228 Depository Bank CENTRAL BANK OF KENYA Address CBK Related Loan AFFORDABLE HOUSING FINANCE DA-B-NT Credit Agreement Currency EUR rPartz A - Account Activity Beginning balance of I st July, 2021 as per C. B. K. Ledger Account OX ----------- - -------------------------- - -- - -- - ----------------- Add: Total Amount deposited by World Bank 200,000.0 - - ----------- - --------------- Total Interest earnings if deposited in account Total amount refunded to cover ineligible expenditure - -- - - -------------------- - - - ----------------- - --- - Deduct: Total amount withdrawn 200,000.0( Total service charges if not included above in amount withdrawn Ending balance on 30th June,2022 0.0( ------- - --- - -- - -- ---- - ----------- - -- - --- ------------ - -- AUTHORISED REPRESENTATIVE SIGNATURE: CENTRAL BANK OF KEN DATE C) L AUTHORISED REPRESENTATIVE --- ------------------- EXTERNAL RESOURCES SIGNATURE: DEPARTMENT-TREASURY DATE - - ---- -------------- --- NOTE:The ending balance as per Central Bank of Kenya Ledger Account and the off-shore Special Account as at 30th.June,2022 have been reconciled and a copy of the supporting Reconciliation Statement is attached. ! i …一 i � � � I I i � � I i 4,,,_ , i ц i � i i ; i � � i I i � � � � I i i i i � i i ( I I i i � j i 1 I I � 8/3/2 , 2:34 PM eBusiness mo p i Loan: 16,RD8958Q( SL - Fixed Spread Loan) Status: Disbursing Country: Kenya Project: pi rSe$4 ernya Affordable Housing Finance Project Loan OvervieW Disbursements History Repayments Amortization Schedule AuditSubmission Applicatinris eSignatoriels) Beneficiaries Designated/LIN Accounts Category Schedule 1 Design.atec!Acco ntDetail-DA-8 1 Account D, ptails i Account Hokler AFFORDABLE HOUSING FINANCE PROJECT DA Currency EUR Account H L older's Bank CENTRAL BANK OF KENYA Current Authorized 500,000.00 HAILE SELASSIE AVENUE Allocation NAIROBI i Swift: CBKEKENXXXX i Account Number 1000442228 Hide Associated Categories 2 - (Gds,Ncs,Cs,Tr & IOC prt 2) Intermediary Bank I FAN A = RTERED BANK other Financing A AVENUE Sources LONDON vlift: SC13LGB2LXXX Transactl6n, Details Currency (EUR) View Transaction List Total Deposits Less Refon s 200,000.00 Documented, 0.00 Outstanding:Balance 200,000.00 Waived Do'curnentation AmIciunt 0.00 1 Transaction in Process 0.00 icians with !nactive AdvAnces RePle'nishment applications are to be submitted in accordance with the instructions provided in the Disbu;rsement L !tter. If the OA six months, the Bank notifies the borrower that it will request a refund of the outst6n,ding bafz nce unless, within 90 days, the borrower submits satisfactory evidence of eligible expenditures fin )nced through the DA. To discuss other arran nt, the : 4gements, including refund of funds deposited to the Designated Accou I borr*er representative should contact the Finance Officer. - l : L, l l l l - ，乙 l l l l - - l l ; l ｀신 l - l - - - - l l l l l - l - l l l - ㅣ l - - B PfZ 2:J,1 PIV e8usiness 'Loan: IBRD 89580,( Sl- Fixed Sore ad Loan) Status: Disbursing Country: Kenya Project: P165034 - Kenya Affordable Housing Finance Project Loan Overvle v Disbursements History Repayments I Amortization Schedule I AuditSubmission Applications eSignatorie(s) Berieftiaries Designated/u,,q Accounts c a t c g,, ledule Withdrawal A ications Disburse nt Milestone Loan'Approval Date Loan Signing Date Loan Made Authorized Authorized Loan Is Ready for 3(l-Apr-201§ 05-Dec-2019 Effective Signatories Disbursing online 02-Jun-2020 Submitted to Ws ,wed 03-Aug-2022 1&-Mar-2022 ,-,1022 Transaction List Showing results 1 9 of 9 entries FilterbY;4i DA-B Search Documented[ Value Date Application Pa id Borrower Status Ccy Amount Category Ccy Amount Date Last Reference ype Value Summary received Date Logged by Updated AHFPwWA 1 DA-B Completed EUR 200,13MOO DA-8 oy WB 0.00 12-Oct-2021 Christine Dambya 22-Oct-2021 Loans with! Inactive Advar ces Replenishment applications art to be submitted in accordance with the instructions provided in the Disbursement Letter. If the DA is inactive for ! ix months, the Bank notifies the borrower that it will request a refund of the outstanding balance vn; ess, within 90 days, the borrower submits satisfactory evidence of eligible expenditures financed through the DA. To discuss other arrarigl?m nts, including refund of funds deposited to the Designated Account, the borrower representativE should contact the Finance Officer. ! ! ! ―、－ ! 一 ! ! ! ! 訐→ } ! ! 〕 ! ! ！、 ｝騙、－ !&- ! ! } } ! ! ! - ! - 〕 〕 ! ! - ! - } I ! ! 8/3/22,,2:41 PM. eBusiness --Mrr- 'Loan: SL - Fixed Spread Loan) Status: Disbursing Country: Kenya Project: P165034 Kenya Affordable Housing Finance Project Loan Overvje Disbursements History I Repayments Amorti2ation Schedule Audit Submission Applications I eSignatorie(s) Beneficiaries Designated/UN Accounts I C:i: 1ILJIe Withdrawal Applcations Disburserei nt Milestone Loaf) Approval Oa e Loan signing Date Loan Made Authorized Avthorized Loan is Ready for jO-Apr-2019 05-Dec-2019 Effective Sigr,atories ';:.-tories Disbursing online 02-jun-2020 Submitted to Wi3 p,ovcd 03-Aug-2022 18-Mar-2022 -2022 SUbmft ' VJ-L Transaction List Showing results 1 - 10 of 10 entries Filter by, -------------- --l Search DA-8 PaidSummary v. I i a; e Application Paid Borrovver Category Date Value Logged Last Type Status Ccy Amount Ccy Amount Reference Limmary received Date by Updated AHFP WA i DA-B Completed EUR 200,OGO.00 DA-B EUR 200,000.00 12-Oct-2021 22-Oct-2021 Borrower 22-Oct-2021 oans wlt6 Inactive Advar Ces Repleofshment appli:0tions are to be submitted in accordance with the Instructions provided ;-i I" Disbu r s iement Le er., If the bA is inact V for ! ix months, the Bank notifies the borrower that it will request a refund of I he outstanding balan e Pn ess, within 90 days, the borrower submit's satisfactory evidence of eligible. expenditures finalceq t irough the DA. To discuss other arrangerrents, including refund of funds deposited to the Designated Account,'the borrower representativc should contact the Finance Officer. l l - l l 룬 ,&＊샅‘ l l l l l l l ; 빅．, l - l l l l l l l l l & & l ( ; ｀님→군 l …＿ l l l l l l l - - l l - l l l l - - l l l l l l 룬 l l - l l THE NATIONAL TREASURY & PLANNING AFFORDABLE HOUSING FINANCE PROJECT TRIAL BALANCE AS AT 30TH JUNE 2022 DESCRIPTION DR (KSHS) CR (KSHS) Proceeds from:E omestic and Foreign Grants 25,364,260.00 Compensation tc employees 3,850,000.00 Printing,advertis ng and information supplies 530,700.00 Payment of Wor. (shop and Conference 5,355,610.00 Training 10,776,366.00 Balance c/d 4,851,584.00 ,TOTAL 25,364,260.00 25,364,260.00