REPUBLIC OF KENY PFFICE OFPTME AUDITOgRGENERAL TEAUDITOR-GENERAL ON AFFORABLE HOUSING FINANCE PROJET (IDA CREDIT NO08958-KE) FR THE YEAR ENDED 3JUNE9 2023 TENATIONAL TREASURY 軸 ×→h・ Sh~ AFFORDABLE HOUSING FINANCE PROJECT THE NATIONAL TREASURY (RESOURCE MOBILISATION DEPARTMENT) PROJECT CREDIT NUMBER: 11BRD CR.8958-KE ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED JUNE 30,2023 Prepared in accordance with the Cash Basis of Accounting Method under the International Public Sector Accounting Standards (LPSAS) s The National Treasury Affordable Housing Finance Project Annual Report and Financial Statements for the financial year ended June 30, 2023 Table Contents Page 1. Acronyms and Glossary of Terms ...................................................................................................... ii 2. Project Information and Overall Performance .................................................................................. iii 3. Statement of Performance against Project's Predetermined Objectives..................................... ix 4. Environmental and Sustainability reporting....................................................................................... xi 5. Statement of Project Management Responsibilities ..................................................................... xii 6. Report of the Auditor General on Financial Statements for Affordable Housing Finance P roje ct........................... ........ ................................. .....- - .................................... ....................................-xiv 7. Statement of Receipts and Payments for the year ended 30 June 2023......................................1 8. Statement of Financial Assets as at 30 June 2023......................................................................2 9. Statement of Cashflow for the year ended 30 June 2023 ......................................................023-.3..3 10. Statement of Comparison of Budget and Actual amounts for year ended 30 June 2023...........4 11. Significant Accounting Policies........................................................................................................... 5 12. Notes to the Financia Statements ..................................................................................................... 11 1 3 . A n n e xe s ...........................................- ....................-... - .............................................................................. 16 13. Anexes.1 The National Treasury Affordable Housing Finance Project Annual Rt and Financial Statenents for the financial year ended June 30, 2023 1. Acronyms and Glossary of Terms CBK Central Bank of Kenya FY Financial Year ICPAK Institute of Certified Public Accountants of Kenya IMF International Monetary Fund IPSAS International Public Sector Accounting Standards KMRC Kenya Mortgage Refinancing Company PFM Public Finance Management. PSASB Public Sector Accounting Standards Board TNT The National Treasury WB World Bank 11 The National Treasury Affordable Housing Finance Project Annual Report and Financial Statements for the financial year ended June 30, 2023 2. Project Information and Overall Performance 2.1 Name and registered office Name The project's official name is Affordable Housing Finance Project. Objective The key objective of the project is to expand acc .ss 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 Project Location: The National Treasury The project does not have other offices or branches. 2.2 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 & Development (IBRD) 2.3 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 i1 The National Treasury Affordable Housing Finance Project Anwdfi Report and Financial Statements for the financial year ended June 30, 2023 Strategic goals of the project The strategic goals of the pr(ject are as follows: (i) Provision of financing to 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 Summary of Project The pr _ect management aims to achieve the goals through the Strategies for achievement followig means: of strategic goals (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 reex ant policy documents Other important background N/A information of the project Areas that the project was The project was formed to intervene in the following formed to intervene problems/gaps: (i) Offer long term mortgage financing at fixed rates Project duration The project started on 5th December 2019 and is expected to run until 30th June 2024 2.4 Bankers The following are the bankers for the project: Central Bank of Kenya Haile Selassie Avenue P.O. Box 60000 City Square 00200 NAIROBI, KENYA 2.5 Independent Auditor Auditor General Ofice of the Auditor General Anniversary Towers, University Way P.0 Box 30084 - 00100 NAIROBI, KENYA iv The National Treasury Affordable Housing Finan ce Project Annual Report and Financial Statemjent.: for tefn cilyaende Jne0,23 Project information and overall performance (continued) 2.6 Roles and Responsibilities Dr. Chris Kiptoo, CBS Principal Secretary Doctorate Accou iting Officer Patrick Macharia Project Bachelor Degree Oversee project Coordinator implementation Christine Dambya Project Bachelor Degree Ensure optimal use of Accountant project resources and accountability Danae Ottaro Project Bachelor Degree Guide in procurement Procurement processes Specialist 2.7 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: V G GИ` ,. и�,у ч .. С"� �`"` � �G � � � � � � n �-. w+ � � � � � � � � С � 3'+ г{ � � 4: � С,��. б � � N � � W � v 4Т � � е3 '`> С.� `� � ^ � Г�++, О� Q � г� '� ``�� � G � ... G � г b � � � ? � � ^-ч � � �. , � � � 5., � � � � ОУ .� � , `"5 � � ' а -, �., " 3 О � `� р q � ;�а �/] � . � .. С q. �,�гr tь. '� Ггу ' �7 � и0,� ССьэ И уС7' „"' ''^' +tia ,.�, � � ^ч 'С '�` , ' гв � � '� � � ? сх Cs' � .„, � � � н Сч С !�"+ �. С � , � � � "v � ,..�� р О � s�. � ы � � U W � С� Со GCa }� „у.. `�..- � � � м: � � � � � `,� *.г С. �у � СУ � � С'4'ь г�С,' н'7 � � � � ц С � N � �*'' �"' �`�S ": �-+` уГ.Е � С3 � � � � й � Q б � � � � � G�ч � `} � •� � ' t�б ,� w � ��, �i � .� � � � �, .� �, � ° Q аэ ы н � � � � � ы � � � � � � � � � �м �л � � � � � � '� ы � `о � а с `и � � Е� �� � � � � �+ � ,� :у . _ -�-. � м й й в~ а; � � �д цз 1 1 1 �`'. ��.. CV С�. , 4XJ ��, G�J 'Ci �i C�i N г-� Тд � � � � {V � � � 1 ! � ,, � ..у + � •s-1 С7 '� � � � 7.. � ез м г,.у � � � � � � � � '� � � � � � � ш ч� а� � �� � v с� `4, ar � � � � � � ,е�°awr .� � � � � �, � � � "� с � � #� •� с�а м�-� � �г, а �а � �' Q � � Q � О � � C�i s�,� С '� � *+.s о L` '.:: �+ � Я. � �, � � .Са �" � W .�� � Ci � � � . � tr �ч `4 +4 '1] "v , i� w � � � `�_ � � Е� '�' � � Сд Affordabic Housing Finance Project AnnualReport aitdFiiiaticict[Stateiiteittsfortheftitaiicicilj,erir ended June 30, 2023 Project information and overall performance (continued) 2.8 Summary of Overall Project Performance: i) Budget performance against actual amounts for current year and for cumulative to-date ITEM 2022/2023 CUMULATIVE BUDGET ACTUAL - TO DATE Payment 11or Compensation to 8,400,000 8,400,000 employeti 12,250,000 Purchase of goods and services 51,264,165 32,372,166 49,034,842 TOTAL 59,664,165 40,772,166 61,284,842 ii) Physical progress based on outputs, outcomes, and impacts since project commencement: -Provision of long temi and affordable mortgages iii) The absorption rate for each year since the commencement of the project. Financial Year Absorption Rate 2021-2022 10% 2022-2023 68% iv) Implementation challenges and recommended next steps. Emergence of COVID-19 affected the housing sector in terms of creation of mortgage portfolios 2.9 Stunmary ofProject Compliance, i) Th3 project has complied to all applicable laws and regulations. All relevant statutory provisions pertaining to budgeting, disbursement, financial reporting and procurement as ;tipulatcd in the relevant Acts were followed in the acquisition of goods and services. ii) Thcre have never been any consequences which the project has suffered since all the rulos 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, Vill The National Treasury Affordable Housing Finance Project Annual Report and Financial Statements for the financial yea- ended June 30, 2023 3. Statement of Performance against Project's Predetermined Objectives Introduction Section 81 (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 Accounting Standards Board includes a statement of the national government entity's performance against predetermined objectives. The key development objectives of the project's agreement/ plan are to: a) The key objective of the project is to expand access to affordable housing to households earning less than Kshs. 150,000.00. Progress on attainment of strategic development objectives For purposes of implementing and cascading the above development objectives to specific sectors, all the development objectives were made specific, measurable, achievable, realistic and time-bound (SMART) and converted into development outcomes. Attendant indicators were identified for reasons of tracking progress and performance measurement ix 于一 Affordable IIousing Finance Project linnual Report and Financial Statententsfor thefinancial year ended June 30, 2023 4. Environmental and Sustainability reporting The project exists to transi-orm, lives. This is our purpose; the driving force behind everything we do. It's what guides us to deliver our strategy. Below is a brief highlight of our activities that drive towards sustainability. 1. Sustainability strategy and profile The bulk of the project is being implemented by K MRC and the company is a going concern. 2. Environmental performance The implementation of the project has no negative impact on the environment. 3. Employee welfare The National Treasury has seconded three (3) staff to the Project Implementation Unit at the National Treasury on part tirnz basis. However, the project thorough KMRC has recruited four (4) staff on contract under Technical Assistance to enhance capacity. The four were recruited through the KMRC Human Resource Instruments with the sole objective that at the completion of the Project, KMRC may absorb them for continuity and sustainability depending on performance. 4. Market place practices- a) Responsible Supply chain and supplier relations- The project has ensured fair play ground in awarding tenders and prompt payment to suppliers. b) Responsible ethical practices The project team has adopted accountability and transparency. c) Regulatory impact assessment The project has a positive impact to the populace. 5. Community Engagements The project does not have any engagement with the community for ownership and sustainability. xi The National Treasury Affordable Housing Finance Project Annual Report and Financial Statements for the finan cial year ended June 30, 2023 5. Statca ut of Project Management Responsibilities The Principal Secretary for the National Treasury and the Project Coordinator 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 ended on June 30, 2023. 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 Coordinator 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 Coordinator 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 ended June 30, 2023, and of the Project's financial position as at that date. The Principal Secretary for the National Treasury and the Project Coordinator 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 National Treasury and the Project Coordinator for Affordable Housing Finance Project confirm that the Project has complied fully with applicable Government xii The National Treasury Affordable Housing Finance Project Annual Report and Financial Statements for the finan cial year ended June 30, 2023 Regulations and the terms of external financing covenants, and that Project funds received during the financial ye.-r under audit were used for the eligible purposes for which they were intended and were properly accounted for. Approval of the Project Financial Statements The Project Financial Statements were approved by the Principal Secretary for the National Treasury and the Project Coordinator and Project Accountant for Affordable Housing Finance Project on 0 A2023 and signed by: Dr. h iptoo. CBS Patrick Macharia Christine Dambya Principal Secretary Project Coordinator Project Accountant The National Treasury ICPAK Member No:13329 xiii The National Treasmy Affordable Housing Finance Project Annual Report and Financial Statements,for the financial year ended June 30, 2023 6. Report of the Auditor General on Financial Statements for Affordable Housing Finance Project XIV REPUBLIC OF KENYA _Jelephone: +254-(20) 3214000 HEADQUARTERS mail: in fooagkenya.go-ke Anniversary Towers Website: www_oagkenya.go.ke Monrovia Street I OFFICE OF THE AUDITOR-GENERAL P.O. Box 3oo84-0ol0o Enhancing Accountlability NAIROBI REPORT OF THE AUDITOR-GENERAL ON AFFORDABLE HOUSING FINANCE PROJECT (IDA CREDIT NO.8958-KE) FOR THE YEAR ENDED 30 JUNE, 2023 - THE NATIONAL TREASURY PREAMBLE I draw your attention to the contents of my report which is in three parts: A. Report on the Financial Statements that considers whether the financial statements are fairly presented in accordance with the applicable financial reporting framework, accounting standards and the relevant laws and regulations that have a direct effect on the financial statements. 1. Report on Lawfulness and Effectiveness in Use of Public Resources which considers compliance with applicable laws, regulations, policies, gazette notices, circulars, guidelines and manuals and whether public resources are applied in a prudent, efficient, economic, transparent and accountable manner to ensure Government achieves value for money and that such funds are applied for the intended purpose. C. Report on Effectiveness of Internal Controls, Risk Management and Governance which considers how the entity has instituted checks and balances to guide internal operations. This responds to the effectiveness of the governance structure, the risk management environment and the internal controls, developed and implemented by those charged with governance for orderly, efficient and effective operations of the entity. An unmodified opinion does not necessarily mean that an entity has complied with all relevant laws and reguiations and that its internal controls, risk management and governance systems are properly designed and were working effectively in the financial year under review. The three parts of the report are aimed at addressing the statutory roles and responsibilities of the Auditor-General as provided by Article 229 of the Constitution, the Public F inance Management Act, 2012 and the Public Audit Act, 2015. The three parts of the report, when read together constitute the report of the Auditor-General. REPORT ON THE FINANCIAL STATEMENTS Opinion I have audited the accompanying financial statements of Affordable Housing Finance Project set out on pages 1 to 16, which comprise the statement of financial assets as at Report of the Auditor-General on Affordable Housing Finance Project (IDA Credit No, 8958-KE) for the year ended 30 June, 2 023 - The National Treasury 30 June, 2023, and the statement of receipts and payments, statement of cash flows and the statement of comparison of budget and actual amounts for the year then ended, and a summary of significant accounting policies and other explanatory information in accordance with the provisions of Article 229 of the Constitution of Kenya and Section 35 of the Public Audit Act, 2015. I have obtained all the information and explanations, which, to the best of my knowledge and belief, were necessary for the purpose of the audit. In my opinion, the financial statements present fairly, in all material respects, the financial position of the Affordable Housing Finance Project, and of its financial performance and its cash flows for the year then ended, in accordance with International Public Sector Accounting Standards (Cash Basis) and comply with the Public Finance Management Act, 2012 and the Financing Agreement Credit No.8958-KE between the Republic of Kenya and the International Bank for Reconstruction and Development (IBRD) dated 5 December, 2019. In addition, the special account reconciliation statement presents fairly, the special account transactions and the closing balance has been reconciled with the books of account. Basis for Opinion The audit was conducted in accordance with International Standards of Supreme Audit Institutions (ISSAls). I am independent of the Affordable Housing Finance Project Management in accordance with ISSAI 130 on Code of Ethics. I have fulfilled other ethical responsibilities in accordance with the ISSAI and in accordance with other ethical requirements applicable to performing audits of financial statements in Kenya. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion. Key Audit Matters Key audit matters are those matters that, in my professional judgment, are of most significance in the audit of the financial statements. There were no key audit matters to report in the year under review. Other Matter 1. Pending Bills The financial statements disclose pending accounts payables of Kshs.1,672,770. Management indicated that the pending bills were occasioned by system challenges in IFMIS during the closure of the financial year. Failure to settle bills during the year in which they relate to distorts the financial statements and adversely affects the budgetary provisions for the subsequent year. 2. Budgetary Control and Performance The statement of comparison of budget and actual amounts reflects final budget and actual on a comparable basis of Kshs.59,664,165 and Kshs.42,600,153 respectively Report ofthe Auditor-General on Affordable Housing Finance Project (IDA Credit No.8958-KE) for the year ended 30 June, 2023 - The National Treasury 2 resulting to an under-funding of Kshs.17,664,012 or 29% of the budget. Similarly, the Project expended a total of Kshs.40,772,166 against an approved budget of Kshs.59,664,165 resulting to an under-expenditure of Kshs.18,891,999 or 32% of the budget. The underfunding and underperformance affected the planned activities and may have impacted negatively on service delivery to the public. REPORT ON LAWFULNESS AND EFFECTIVENESS IN USE OF PUBLIC RESOURCES Conclusion As required by Article 229(6) of the Constitution, based on the audit procedures performed, I confirm that, nothing has come to my attention to cause me to believe that public resources have not been applied lawfully and in an effective way. Basis for Conclusion The audit was conducted in accordance with ISSAI 4000. The standard requires that I comply with ethical requirements and plan and perform the audit to obtain assurance about whether the activities, financial transactions and information reflected in the financial statements are in compliance, in all material respects, with the authorities that govern them. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my conclusion. REPORT ON EFFECTIVENESS OF INTERNAL CONTROLS, RISK MANAGEMENT AND GOVERNANCE Conclusion As required by Section 7(1)(a) of the Public Audit Act, 2015, based on the audit procedures performed, I confirm that, nothing has come to my attention to cause me to believe that internal controls, risk management and overall governance were not effective. Basis for Conclusion The audit was conducted in accordance with ISSAI 2315 and ISSA 2330. The standards require that I plan and perform the audit to obtain assurance about whether processes and systems of internal control, risk management and overall governance were operating effectively, in all material respects. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my conclusion. REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS As required by international Bank for Reconstruction and Development, I report based on my audit, that: i. I have obtained all the information and explanations which, to the best of my knowledge and belief, were necessary for the purpose of the audit; Report of the Auditor-General on Affordable Housing Finance Project (IDA Credit No.8958-KE) for the year ended 30 June, 2023 - The National Treasury 3 ii. In my opinion, adequate accounting records have been kept by the Project, so far as appears from the examination of those records; and iii. The Project's financial statements are in agreement with the accounting records and returns. Responsibilities of Management and those Charged with Governance Management is responsible for the preparation and fair presentation of these financial statements in accordance with International Public Sector Accounting Standards (Cash Basis) and for maintaining effective internal controls as Management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error and for its assessment of the effectiveness of internal controls, risk management and overall governance. In preparing the financial statements, Management is responsible for assessing the Project's ability to continue to sustain its services, disclosing, as applicable, matters related to sustainability of services and using the applicable basis of accounting unless Management is aware of the intention to terminate the Project or to cease operations. Management is also responsible for the submission of the financial statements to the Auditor-General in accordance with the provisions of Section 47 of the Public Audit Act, 2015, In addition to the responsibility for the preparation and presentation of the financial statements described above, Management is also responsible for ensuring that the activities, financial transactions and information reflected in the financial statements are in compliance with the authorities which govern them, and that public resources are applied in an effective way. Those charged with governance are responsible for overseeing the Project's financial reporting process, reviewing the effectiveness of how Management monitors compliance with relevant legislative and regulatory requirements, ensuring that effective processes and systems are in place to address key roles and responsibilities in relation to overall governance and risk management, and ensuring the adequacy and effectiveness of the control environment. Auditor-General's Responsibilities for the Audit The audit 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 report that includes my opinion in accordance with the provisions of Section 48 of the Public Audit Act, 2015 and submit the audit report in compliance with Article 229(7) of the Constitution. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISSAls will always detect a material misstatement and weakness when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could Report of the Auditor-General on Affordable Housing Finance Project (IDA Credit No.8958-KE) for the year ended 30 June, 2023 - The National Treasury 4 reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. In addition to the audit of the financial statements, a compliance audit is planned and performed to express a conclusion about whether, in all material respects, the activities, financial transactions and information reflected in the financial statements are in compliance with the authorities that govern them and that public resources are applied in an effective way, in accordance with the provisions of Article 229(6) of the Constitution and submit the audit report in compliance with Article 229(7) of the Constitution. Further, in planning and performing the audit of the financial statements and audit of compliance, I consider internal controls in order to give an assurance on the effectiveness of internal controls, risk management and overall governance processes and systems in accordance with the provisions of Section 7(1)(a) of the Public Audit Act, 2015 and submit the audit report in compliance with Article 229(7) of the Constitution. My consideration of the internal controls would not necessarily disclose all matters in the internal control that might be material weaknesses under the ISSAIs. A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements caused by error or fraud in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Because of its inherent limitations, internal controls may not prevent or detect misstatements and instances of non-compliance. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of pompliance with the policies and procedures may deteriorate. As part of an audit conducted in accordance with ISSAIs, I exercise professional judgement 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 controls. * Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Management. * Conclude on the appropriateness of the Management's use of the applicable basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Project's ability to continue to sustain its services. If I conclude that a material uncertainty exists, I am required to draw attention in the auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify my opinion. My Report of the Auditor-General on Affordable Housing Finance Project (IDA Credit No.8958-KE) for the year ended 30 June, 2023 - The National Treasury 5 conclusions are based on the audit evidence obtained up to the date of my audit report. However, future events or conditions may cause the Project to cease to continue to sustain its services. * 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. * Obtain sufficient appropriate audit evidence regarding the financial information and business activities of the Project to express an opinion on the financial statements. * Perform such other procedures as I consider necessary in the circumstances. I communicate with the Management regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal controls that are identified during the audit. I also provide Management with a statement that I have complied with relevant ethical requirements regarding independence and to communicate with them all relationships and other matters that may reasonably be thought to bear on my independence, and where applicable, related safeguards. CPA BS AUDITOR-GENERAL Nairobi 16 October, 2023 Report of the Auditor-General on Affordable Housing Finance Project (IDA Credit No.8958-KE) for the year ended 30 June, 2023 - The National Treasury 6 一！無－ Affordable Housing Finance Project nnnl Rivort and Financial Statensents./or t1lefinancial year ended June 30, 2023 8. Staten tent of Financ 'a' Assets as at 30 June 2023 isets Cash and Cash equivalents Bank Balances 4A 6,679,571 4,851,584 Cash Balances Cash equivalents (Short-term deposits) Total Cash and Cash equivalents 6,679,571 4,851,584 Imprests an(7 Advances 5 - - Total Financial Assets 6,679,571 4,851,584 Financial Liabilities Net Assets Represented By Fund Balance B/fwd. 6 4,851,584 Prior Year adjustments - - Sutplus/(Delicit) for the Year 1,827,987 4,851,584 LNet Fiu ancial Position 6,679,571 41851 584 The accouw ing policies and explanatory notes to these Financial Statements form an part of flu.- Finar cial Statements. The Financial Statements were approved on Z2 40L b v 2023 and signed by. ...... .. .. ..... . .. ........ .......... ................ I.-d .............. Dr. Chris Kiptoo. CBS Patrick Macharia Christine Dambya Principal SeTretary Project Coordinator Project Accountant The National Treasury ICPAK Member No: 13329 2 The National Treasury Affordable Housing Finance Project Annual Report and Financial Statements for the finan cial year ended June 30, 2023 9. Statement of Cashflow for the year ended 30 June 2023 Cashflow from operating activities Receipts Loan from External Development Partners 1 42,600,153 25,364,260 Total receipts 42,600,153 25,364,260 Payments Compensation of employees 2 (8,400,000) (3,850,000) Purchase of goods and services 3 (32,372,166) (16,662,676) Total Payments 40,772,166 (20,512,676) Net receipts/(payments) 1,827,987 4,851,584 Adjustments during the year Prior year adjustments Decrease/(increase) in accounts receivable - Increasc/(decrease) in accounts payable: - Net cash flows from investing activities 1,827,987 4,851,584 Cash flow from financing activities Net cash flow from financing activities - - Net increase in cash and cash equivalents 1,827,987 4,851,584 Cash and cash equivalent at beginning of the year 4 4,851,584 Cash and cash equivalent at end of the year 4 6,679,571 4,851,584 The accounting policies and explanatory notes to these financial statements form an integral part of the financial stateme fhe entity financial statements were approved on Z OcXo4 2023 and si Dr. C ' CB Patrick Macharia Christine Dambya Principal Secretary Project Coordinator Project Accountant The National Treasury ICPAK Member No:13329 3 �` о с а о е \ 4 .����. � � .� G М Об +и-ь С^' •--i '�О �G Гw" й] �" д� �-+ [� 4 �� 4' 7. � � '... �у а--` [� а � � � � , � � . � СЛ ' б о9 Ор � s.. [� ' oG 06 �.; �i Э--�. у� r--� � � * � +, О еС �" л�ч � �.� ` •� � +�'+ i. ; у � � � ��� М Ст ГS tC [� С7 ` еС С L�. '�' а � м О�1 � � � � �Аsг С� � СЧ N N N г �-�"; -Г-� ' Р^^ С^� � . � ch 00 '. +W .ву 'Э•� � � � ьs� ц � � � � ��. М �" � � � и � '�;'' � • и f�ч ww � � � � �� � < <гi с� +п V7 ь 6у ж: �7 Сэ tiGs tCS �+ С`н г �:�.3 '� О � .. 'i--i Q�} � � � ' д��' N � W � в ., с�с М т� сл sю ,-, й � +�г," � � '�. И 1Г1 � � � C�t ' � ы -.� ° � � ц � с�а ' ^`^�, � �' �Э C�J � � '" ' '� о �° � , � м � �, � �� � � � � С ° a�i � о �' � � °а � � � � ` � V � � .-, о ,� ,-и `� ,�; +. � � � и и � � � � � � � r'°v„ ' � � � 'v � Е' , � , °" й й � ' Ак 0., �. � � �: � � � � �' � � � .� � �� ° с�. � г � � � � � ' '" °' � ° _� � о � Ф м � � � � � � �� C�j `� и i � � � � ц � +. С � `� р. � � � +�'i S': ¢" + � L•" � � 'б �r � а �� � '� � ��.. ,SЭ ' ' � � �� и 1 А �� r "и�� •.,� � еи.� а� � � � : �' � � � � � i ++ � �, v � `С q. °' � � с� �`-у с°,о а�г Cj °� � ы cs ,: � � w .� Q �, � � ' и v1 � � �г -� � � � �.. о у, Q г� � о eS "^�+ � ��. ьи, О ау ,�,,, � N� ai � .�" , 'ц {С #� ��. `� � с%а а, , `� С� �+ � с � � �'" : .� t�„ са ,� с� � `; � i ' � � � � s, � " � +? � и � � ё� R � ���-°� Е� cs�, � а. Е� гл � ' А.��., [-�� The National Treasury Affordable Housing Finance Project Annual Report and Financial Statementsfor the.fin(incial year ended June 30, 2023 It. Significant Accounting Policies The principal accounting policie.3 adopted in the preparation of these financial statements are set out below: a) Statement of compliance and basis of preparation The financial statements have been prepared in accordance with Cash-basis IPSAS financial reporting under the cash basis of accounting, as prescribed by the PSASB ard set out in the accounting policy note bolow. This cash basis of accounting has been supplemented with accounting for; a) receivables that include imprests an(! ,alary 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. b) Reporting entity The financial statements are for Kenya Affordable Housing Finance Project under the National Treasury. The financial statements are for the reporting entity Kenya Affordable Housing Project as required by Section 81 of the PFM Act, 2012. c) 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. d) Recognition of receipts Kenya Affordable Housing Finance Project recognises all receipts ftom the various sources when the event occurs, and the related cash has been received. i) Transfers from the Exchequer Transfer from Exchequer is recognized in the books of accounts when cash is received. Cash is considered as received when payment instruction is issued to the batik and notified to the receiving entity. ii) External Assistance External assistance is monies received through grants and loans from multilateral and bilateral development partners. 5 The National Treasury Affordable Housing Finance Project Annual Report and Financial Statements for the financial year ended June 30, 2023 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 udrawn external assistance is shown in the funding summary. e) Recognition of payments The Projecl recognises all payments when the event occurs, and the related cash has 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 consumned and paid for. If not paid for during the period where goods/services are consumed, they shall be disclosed as pending bills. 6 The National Treasury Affordable Housing Finance Project Annual Report and Financial Statements for the financial year ended June 30, 2023 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 repayment of principal amount of borrowing is recognized as payment in the period in which the repayment is made. The stock of debt is disclosed as an annexure to the consolidated financial statements. v) Acquisition of fixed assets The payment on acquisition of property plant and equipment items is not capitalized. The cost of acquisition and proceeds from disposal of these items are treated as payments and receipts items respectively. 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 receipt 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 statements. f) In-kind donations In-kind contributions are donations that are made to the Project in the form of actual goods and/or services rather than in money or cash terms. These donations may include vehicles, equipment or personnel services. Where the financial value received for in-kind contributions can be reliably 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. g) Cash and cash equivalents Cash and cash 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 convertible 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 banks at the end of the financial year. For the purposes of these financial statements, cash and cash 7 The National Treasury Affordable Housing Finance Project Annual Report and Financial Statements for th financial year ended June 30, 2023 Significant Accounting Policies (Continued) 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. h) Restriction on cash Restricted rash represents amounts that are limited/restricted from being used to settle a liability for at lea. twelke 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. i) 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 AIE holders. This is an enhar. eme4t to the cash accounting policy. Other accounts receivables are disclosed in the financial statements, j) 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 prese nt 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) Thc 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, The Entity does not recognize a contingent liability but discloses details of any contingencies in the notes to the financial statements unless the possibility of an outflow of resources embodying economic 8 The National Treasury Affordable Housing Finance Project Annual Report and Financial Staten ents for the finan cial year ended June 30, 2023 Significant Accounting Policies (Continued) benefits or service potential is remote. Annex 6 of this financial statement is a register of the contingent liabilities in the year. k) Contingent Assets Kenya Affordable Housing Project does not recognize a contingent asset, but discloses details of a possible asset whos, existence is contingent on the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of Kenya Affordable Housing 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 statements of the period in which the change occurs. 1) 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 the reporting period, they recorded as 'memorandum' or 'off-balance' When the pending bills are finally settled, such payments are included in the statement of receipts and payments in the year in which the payments are made. m) Budget The budget is developed on a comparable accounting basis (cash basis), the same accounts classification 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 Treasury 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 consolidation. A high-level assessment of 9 The National Treasury 4ffordable Housing Finance Project 4nnu al Report and Financial Statements for the financial year ended June 30, 2023 the Project's actual performance against the comparable budget for the financial year/period under review has been included in an annex to these financial stateients. Significant Accounting Policies (Continued) n) 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' colun in the statement of recuipts and payments. o) 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 t-ansaction 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. p) 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. q) Subsequent events There have been no events subsequent to the financial year/period end with a significant impact on the financial sttements for the year ended June 30, 2023. r) Prior period adjustments Prior period adjustments relate to errors and other adjustments noted arising from previous year(s). 10 _ _ - --� r�'- �°t� , н ао и d�n a.r , r' � � � о°с� � � м ® � � аэ ц � � � б � � о�л � � � м м � � � � � с� � б � .-�ч `��' Й tio и .-t t� ггi �а G3 . � � о�оА � � о ni �' .-., ' м er _� а � � � � г�v � � � � � с� о � ы � � "� �°. � � � � и .-� "� � � гJ б � [-� Ог� ED � � �-+ О N +--+ �.j � .Ww crs tl' � � � и С7 +!у "' �i '��' Ф � µ '� г��ц � � � , � � аэ � � � v, 4ь 'и �"ы аа с�а м �,�� а с�с м° ° � � , v � � � А," о � � а� оеа' м � � ai � � г*� с� � � � � � � Gy ч С" ti Q3 +у +м �� � � � � � � � 4+ � � � � � � � �, р . � G -� � I'� �' � б р i". �+ `й н fiS � .v � ,� � � � � � � � � � �и �" ^й'�"" 'д � ,� � Fте W •v � � � � � Er � *.� .� г,�у � � � р � с � �4'. � й w +-н у � U� .... � �� Q*� � и с�ц' � Н б+�"-� б�гв� '" � � а.+ й ''°'' '_`п3 а � �'+ � Я .-+ � � � � � � о � � � � о .��� `,' � � ���г� Е� �•, � �С � '-; _ , � r-� �r с�, с_а о о cv .-� с7 v�� _ и � оо r� с с7 ст .�rэ м !+� и ' О С7 р � � �-.. y.i' ,-," �у О +-+ l0. и �: м М гI7 iК1 .-ч � С � � � � � � � . � � А Е-а ы � е�л '� с3 G � , � ! 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"" � � еС }..� С3 � C,j i '� � ' оА � �, � ср �" �. `'� гл � �k � ba � � � U � � `й � � °� Q � Е. � ,�.�» � �- и Gг, � � �, �" � � � � � � с, С-�° v � �а� "' � ^ � а � � �s �ы €� °' с�.' � b � � � ��� � ' � ��� д • . .. _. _ _ . .г -°'°� М �V Q N Q м w � � � � � � ол �, � а� � ;� `'., � � Ф В�,э � ц � 41 г-� � .-� "w„� v � �, � � � � � � •н гву ' � � � и oe.ri в�i д � с�з •� � � � v �. � � .� �_ �, ,�, � ,,' � и и � `с, ,�° c�i и о �s � � � о � � � � � -� .� � �ч � � с� _`'� �'" � •� � � � � о а�', � ,�, а � ,� `�' й� � � а � ;G о �,, •w~ сс Cq в � � С7 � й � � сэ � � '� '� �" r`-= U U W й Е� � � `� ег °� ��� � "" а: ..; � � �н •м � � � � - L& .，阻，&，灐빠，, --，…→＿/___ KENYA AFFORDABLE HOUSING FINANCE PROJECT STATEMENT OF SPECIAL (DESIGNATED) ACCOUNT RECONCILIATION FOR THE YEAR ENDED 30 JUNE 2023 Credit No.: IBRD LOAN CREDIT NO.89580-KE (DA-B) Bank Account No.: 1000442228 Held with CENTRAL BANK OF KENYA NOTES AMOUNT AMOUNT EURO, EURO I Amount advanced by IDA 90,425.39 Less: 2 Total amount documented 90,425.39 3 Outstanding amount to be documented 500,000.00 Represented by: 4 Endin S ecial account Balance as as 30 June 2023 99,995.00 5 Amounts claimed hut n nt rrod if-4 " - `0 June 2023 6 Amounts witdraen and not claimed 400,005.00 7 Service Charges (if not inchided in 1;- 5 and 6 above 8 Interest earned (if included in Special Acco nt) 9 Total advance to Special Account Year ended 30 June 2023 rill Discrepancy between total appearing on line 3 and 9 Notes: I Explain the discrepancy between totals appearing on lines 3 and 9 above (e.g 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 OL AUTHORISED REPRESENTATIVE RESOURCE MOBILISATION DEPARTMENT DATE; THE NATIONAL TREASURY . .. . - - ·· u - - . s. w o--i---- -e- •• ACCOUNT STATEMENT For period ending 30th JUNE, 2023 Account No. 1000442228 Depository Bank CENTRAL BANK OF KENYA Address CBK Related Loan AFFORDABLE HOUSING FINANCE DA-B-NT Credit Agreement Currency EUR Beginning balance of 1st July, 2022 as per C.B.K. Ledger Account A dd -------------------------- ------------ ---------------- 0.00 Add: Total Amount deposited by World Bank 390,415.39 Total Interest earnings if deposited in account Total amount refunded to cover ineligible expenditure Deduct: Total amount withdrawn Total service charges if not included above in amount withdrawn Ending balance on 30th June,2023n ,995 .00 -------- .. --- . ---99---99---00- AUTHORISED REPRESENTATIVE SIGNATURE: CENTRAL BANK OF KENYAA- D---------------- AUTHORISED REPRESENTATIVE DATE ) EXTERNAL RESOURCES SIGNATURE: AA-A-4L DEPARTMENT-.TREASURY------------------------- DATE 41d 8 NOTE:The ending balance as per Central Bank of Kenya Ledger Account and the off-shore Special Account as at 30th June2023 have been reconciled and a copy of the supporting Reconciliation Statement is attached. 一―団ー日ーーー一一一一―一―一―一一― 一→Ll日一…1→個→―一襼一ーー図ー→ア門Pーーー戸山山HhN口w一りn一門―rいー―dTー甲1ー山し→一っ一―d一山d一を―一1一―一ー―』―％一J『副ー』．し』dざ 5 Loan: IBRD 89580 (FSI, - Fixed Spreåd Loar) Status: Disbursing Country- Kenya P'OJcct: P165034-KenyaAffordableHousfngFinanceProjeet Loan Overvlew Djsbursernents History Repay ments Arnartýzationschedule Audit.Submission D Applications l eSlgnatorle(s) BeneflelarIe5 Designated/UNAcceunts categorySchedule I Withdrawal Appfications Disbursement Milestone Loan ApproVål Date LGatl Sign Ing Date Loan Made Autboriied Autliorbed Loa ri is Ready for 30-Apr-2019 05-Dec-2019 Effective Signato~ Signatorles Dishursing Onilne 021m-2020 subrnjcted to WB Approved 16-Aug-2023 09-Mar-2023 09-Mar-2023 . ........ . .. ... . witildrawal Apfkcalýu r. Transaction List sho"ng results i - 10 of 13 entries r Fifterby DA-8 Paid Surnrnary v! vålue Dato, Search Appfication Pald Borrower Type Status Cey Arnount Category Ccy Amount Date Value Logged Last Refärence Summary recelved Date by Updated AHFP-WA 3 DA-B Cornpleted FUR 300.000X DA-S FUR 300,000.00 02-jun-2023 14-lun-2023 Borrower 14-jun-2023 MFNWA 2 DA-9 Curnpteted EUR 90,425,39 2 EUR 90,425.39 31 -Oct-2022 17-Nov-2022 Borrower 17-NOV-2022 AlIFI2-WA 1 DA-B cornpleted FUR 200,000.00 DA-3 EUR 200,000.00 12-Occ-2021 22-Oct-2021 Borrower 22-Oct-2021 ．一一一一口一‘一－一→―一―一 、戶唔 一－一－→一一一一一一一一一，一一一斤一一一一－一一一－一 KENYA AFFORDABLE HOUSING FINANCE PROJECT STATEMENT OF SPECIAL (DESIGNATE, D) ACCOUNT RECONCILIATION FOR THE YEAR ENDED 30 JUNE 2022 Credit No.: IBRD LOAN CREDIT NO.89580-KE (DA-B) Bank Account No.: 100044,2228 Held with CENTRAL BANK OF KENYA NOTES AMOUNT AMOUNT EURO EURO I Amount advanced by IDA 200,000,00 Less: 2 Total amount documented 3 Outstanding amount to be documented 00.00 Represented by: 4 Endin S ecial account Balance as as 30 June 2022 5 Amounts claimed but not credited as at 30 June 2022 6 Amounts witdraen and not claimed 200,000.00 7 Service Cli Egcs above) 8 Interest earned (if included in Special Account) - - Account Year ended 30 June 2022 200,000.0 Discrepancy between total appearing on line 3 and 9 - N,otes: I Explain the discrepancy between totals appearing on lines 3 and 9 above (e.g 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 RESOURCE MOBILISATION DEPARTMENT DATE- THE NATIONAL TREASURY e- , nes--- ' '' '' '''' Resuits l _4 of4 47 Runt: 9:U7 20n Rn CENTRAL BANK Of KENYA STATEMENT O BANKI KUUV KyNV4 CF A4CCOUNT AO.BO'X M00-020Q NAIRO~ ACO"NT TTER 1000442228 ' STATEMENTPROD:From 01/07/2022 ToACCONTTITLE :A ----------- -3063 AFORDABLE SIN N -NCE NO. DATr --T - - REFERENCE No DETALs OPENING BAL: - - -E No. C eREUIT BALANCE VaIu£ Date Rfernec.No Details Debit Credit Balance 2 18/11/2022 FT22322JN9KL FUNDING 0.00 90,42039 9042039 2 20/12/2022 FT223543LGDB PA 129573 -9042039 0,0 0 3 15/06/2023 FT23166KMS0W F012C3 0 299,99500 299995 4 23/06/2023 FT231744VpZ VAl31573 -200,000-00 0005 9999 F-ND Or ACC(-vi' Si,trE.rrC0NGRLAN F 9). Ffarfs TANME.STMT,0r-ACCT£PRM Fi., 7 -qua2s 0,100004 4229928 Stateent From equals v 202270 Staemen To quals v -20233630 TAM.ESTMT,OF.ACCT.EPRM ―ー冒―-―■ー―--―ーー券一―-―一一一―一―→―- i! ligs lig Iii551,1ý I-Oan: IBRD89580(F5L-FIxed.Spreadloan) Status: Disb,,si,g COuntry: Kenya Projeet. P165034-KenyaAffordableHousingFinanceProjeet Loan Overview Disbursernents I History j RePaYrnents J AmortizaflonSchedule AuditSubrn[ssion D Applications j esignatorie(s) Beneficiaries Design-Ited/UN Accounts category Schedule Withtfrawaf Applications Disbursement Milestone Loan Approvaj Date Loan 51941Ing Date Loan Made Auth*rhed Authorized Lgan 15 Ready for 31:ý-Apr-201 9 OS-Dec-20i9 Effective signatorles signatorjes DIsbursjnZ Onilne 02-jun-2020 Submitted to WB Approved Og-Mar-2023 0"ar-2023 Transaction List ShowinE rE!sults i - 10 of 13 entries - - - -------- Filter by DA-B - ---- - Search Documented C v Nýalue Dý3te Application Pald Borrower Type Status Ccy Afflo Category Date value Reference unt Summary CCY Amount received Logged by Last Date Updated AH FP-WA 3 DA-B Completed EUR 300~.oo DA.B by WB 0.00 02-lun-2023 GUY0 Galg40 14-jun-2023 AHFP-WA2 DA-B Completed EUR 90,425,39 2 EUR 90,42S-39 31-Oct-2022 17-NQv-2022 Borrovver 17-Nov-2022 AHFP-WA 1 DA-13 Cornpleted EUR 200,000.00 DA-B by WB 0,00 12-oct-2021 Christine Dambya 22,OCL-2021 ~~r一目一‘－一一一一～______~__＿一＿__ Loan- 12RD 99SBO (FSL - Filed Spread Loan) Status: Disbursing Country' Kenya Project: P16S034 - Kenya Affordable Housing Finance Project Loan Overview 0 sbursernents History I Repayments Arnor , t , lz ationSchedule AuditSubmfssion Applica . tic ns 1. esfgnatOrie(s) Beneficiaries Designated/UN Accounts Category Schedule Designated Account Detail- DA.B Account Details Account Holder AFFORDABLE HOUSING FtNANCE PROJECT DA Currency EUR Account Holder's Bank CENTRAL BANK OF KENYA Current Authorized 500,000.00 HAfLE SELASSIE AVENUE Allocation NAIROsi Swift: CBKEKENX = Account Number XX*VY=28 Associated Categories 2 - (GdsNcscsTr & IOC prt, 2) Intermediary Bank STANDARU CHARTERED BANK Other Financing 1 BASINGHALL AVENUE LONDON Sources SWFt: SCBLG82LXXX Transaction Details Currency (EUR) view Transaction List Total Deposits Less Refunds Documented 590,425-39 Outstanding Balance 90,425-39 Waived Documentation Amount 500,000.00 Transaction in Process 0.00 0.00 - Loan: IBRD 89580 (FSL - Fixed Spread Loan) Status: Disbursing Country: Kenya Project: P165034- Kenya Affordable Housing Finance Project Loan Overview Disbursements History Repayments Amortization Schedule Audit Submission Important Dates Approval Signing Commitment Effective Closing first Application Last 30-Apr-2019 05-Dec-2019 Charges Start 02-Jun-2020 C O-un-2024 Repayment Oeadline Repayment Date Rpyet Daln eamn 03-Feb-2020 15-Jul-2024 31-Oct-2024 15-Jan-2044 Currency of Commitment: EUR Show amounts In UR Loan Information (EUR) Signed Amount 219,000,000,00 Cancelled 0.00 Disbursed 94,487161.61 Undisbursed 124,512,838.39 Special Commitments 0.00 Funds Available 124,512,838.39 Funds Available (EUR) Withdrawal Applications 0.00 s9kbur,sed4v 3 Uridisurd56 9%Special Commitment Issuance Applications 0.00 Estimated Funds 124,S12,83.39 Available Last Bill, IBRD 89580, due on 1 5-Jul-2023 15,000,000.00 Retroactive Available Borrower; The National Treasury and Planning Retreactive Lrmit Date Payable Currency Amount Payable 15,000,000.00 17-Jul-2023 EUR 1,197,732,46 Retroactive Disbursed 0.00 Period of Retroactivity 01-Jan-2019 to 04- Dec-2019 94,487,161.61 4.90 % 0.25% Principal Outstanding Net Lending Rate Net Commitmment Fee Disbursed Lending Commitment 0,25% 4.90 % Fee 94,487,16 Rate 1.61 Wie Waiver Waiver 0.00% 0.00% Deferred 0,00 Principal 00 Interest ineligible Actual Waiver obligation 0.00 Status Type Variable Repaid O'G0 Rate Reset Prepaid15-Jul- Prepaid0.00 Date 2023 Regular Repayme nts Accrual Charges to be capitalized/b illed Total PPF Obligation 0.00 USD Equivalents 250,000,000.00 Original Approved Ar ount 2 0 . ~136,142,337.5 Current UndisburseC 104.633.604.04 Historical Disbursed Reference Inforrmation Lending Instrument: IPF - investment Project Average Repayment 14.940 Years Financing maturt Fixed spread Loan - Available Embedded . Caps / collars Loan Type: COMM ITMENT-LINKED Options: Currency Conversion Option - Hedge request starting type - Interest Rate Conversions Option (Other than Subloan) Borrower of Record: The National Treasury and Planning Guarantor: Kenya Maturity Type: LEVEL Loan Term: 25 Years Maturity Profile: CUSTOM Grace period: 5 Years ARF Terms: 6 Months Next ARF Date: 15-Jan-2024 BN CENTRAL KU Yj BANK OF KENYA KENYA Haile Saassie Avenue P.O Box 60000 - 00200 Nairobi, Kenya Telephone 2860000, Fax: 3340192 July 18, 2023. CERTIFICATE OF BALANCES Customer: 100094 MINISTRY OF FINANCE Balance Date: 30-Jun-23 Account No Account Name Currency Balance 1000000977 TREASURY BILLS ACCOUNT KES 0.00 1000000988 TREASURY BONDS ACCOUNT KES 1,829,198,744.80 1000000996 REVENUE DEPOSIT ACCOUNT KES 8,669,542,680.36 1000004053 TREASURY BONDS REDEMPTION KES 138,700,000.00 1000004061 REASURY BONDS INTEREST KES 30.68 10001 8146 REC-THE NATIONAL TREASURY ,KES 1,141,462,368.67 100018 664 DEV-THE-NATIONAL TREASRY KES 17,321,113.65 1000182137 DEC-THE NATIONAL TREASURY KES 205,577,249.15 1000004088 TREASURY BILLS REDEMPTION SUSP. KES 0.00 1000187506 MICRO FINANCE SEC SUP CR-CAP BLDG KES 90,491,999.30 1000201924 1 VOLUNTARY PAY CUT 1 KES 2,019,245.00 1)237872 FINANCIAL SEC.SUPP.PRJ-IDA 56270-KE KES 0.00 ACCOUNTANT GENERAL - Customer: 100133 TREASURY Balance Date: 30-Jun-23 Account No Account Name Cuency Balance 10002250 GOERNMvENTf OVERDRAFT ACCOUNT. KES -716,456,927.038.09 NATIONAL TREASURY Bahmnee Date: ¯ 30-Jun-23 Accouw No Account Narhe Currenc Balance 1 00020378j REC-PUBLIC DEBTr KES 1,484,306,326.95 1000204419 REC-SALARIES ALLOWA MISC AND NSSSFC KES 4,718,125.15 100020-024 PETROLEUM DEVELOPMENT LEVY FUND KES 3897,87.8 1000268743 AFRICAN INSTITUTE¯FOR REMITTANCES KES 17,127,569.60_ 000323876 A U OTHER INTERNAT. ORG SUBSC FUND KES 5,395,394,231.61 11000331747 GREEN GROWTH AND EMPLOY CREATION PR KES 5 000,00000 1O0034538 PPP PROJECT FACILITATIONFUND ACC. -ES I 038700 000368632 INFRASTRUCTURE FIN AND PUB PART PRJ KES 279-616 439 5 1000221518 KENYA PETROLEUM TECHNICAL ASS PROJ KES 0001 100040,018 INFRAST FINANCE AND PPP-CAT. 2EEP KES 617,330 847 80 1000447575 KEN. FINANCING LOCALLY LED CLIMATE KES 56,41.5173.20 1000473851 PUBLIC DEBT MANAGEMENT SUPPORT PROJ KES 621,344.20 100047(6858 CREDIT GUARANTEE SCEEME ACCOUNT KES 3,000,0000.0 1000484675 FINANCIN LOCA,L-LED CLIMATE ACTION B KES2229 10005 16 534 GREEN CL TE FUNJ) REA DINESS PROJ KES 17,713 836 03 100052 85 A BLE H SING kYAEPRO3I KS L 35 03 100528893 ADBNAO TRE W CAPACITYSTRE KS 25S150 ,069-0% SIP,'OR T_'_ E Tk ?NTR ECO KES 261913 25 000701596 I S MESS T w N cTR &±cov A -ES 105 5 K2_ -90 W _Dh AtAR TNERSH K Er, S , 100070c607 SUP ACESI TOFI'N ETPRP RECOV B KES L STATE OFF AND PU OFF Custoner 152575 CAR LOAN SC Balance Date: 30-Jun-23 Account No Accounz Nam Currencv Balance o 0053876 STATE OFF AND PUB OFF LOAN SCH KESE55752,80 Priscilla Keitany (Mrs Joyce Nasieku Authoristd Signatory Authorised Signatory Banking Services Di- ision Banking Services Division' THE NATIONAL TREASURY & PLANNING AFFORDABLE HOUSING FINANCE PROJECT TRIAL BALANCE AS AT END OF JULY 2022 DESCRIPTION DR (KSHS) CR (KSHS) Balance b/f 4,85 1,583.65 Proceeds from Domestic and Foreign Grants - Compensation to employees - Domestic travel and subsistence Balance c/d TOTAL - 4,851,583.65 TRIAL BALANCE AS AT END OF AUGUST 2022 DESCRIPTION DR (KSHS) CR (KSHS) Balance b/f 4,851,583.65 Proceeds from Domestic and Foreign Grants Compensation to employees Domestic travel and subsistence Balance c/d TOTAL - 4,851,583.65 TRIAL BALANCE AS AT END OF SEPTEMBER 2022 DESCRIPTION DR (KSHS) CR (CS11S) Balance b/f 4,851,583.65 Proceeds from Domestic and Foreign Grants 0 - Compensation to employees 2,100,000.00 Domestic travel and subsistence Balance c/d 2,751,583.65 TOTAL 2,751,583.65 2,751,583.65 TRIAL BALANCE AS AT END OF OCTOBER 2022 DESCRIPTION DR (KSHS) CR (KSHS) Balance b/f 2,751,583.65 Proceeds from Domestic and Foreign Grants 0 Compensation to employees 700,000.00 Domestic travel and subsistence Balance c/d 2,051,583.65 TOTAL 2,051,583.65 2,051 ,583.65 TRIAL BALANCE AS AT END OF NOVEMBER 2022 DESCRIPTION DR (KSHS) CR (KSHS) Balance b/f 2,051,583.65 Proceeds from Domestic and Foreign Grants 0 - Compensation to employees 700,000.00 Domestic travel and subsistence - Balance c/d 1,351,583.65 TOTAL 1,351,583.65 1,35T,583.65 TRIAL BALANCE AS AT END OF DECEMBER 2022 DESCRIPTION DR (KSHS) CR (KSHS) Balance b/f - 1,351,53.65 Proceeds from Domestic and Foreign Grants 0 11,793,612.80 Compensation to employees 700,000.00 Domestic travel and subsistence 344,400.00 Balance c/d 12,100,796.45 TOTAL 12,100,796.45 12,100,796.45 TRIAL BALANCE AS AT END OF JANUARY 2023 DFSCRIPTION DR (KSHS) CR (KSHS) Balance b/f 12,100,796.45 Proceeds from Domestic and Foreign Grants 0 Comipensation to employees 700,000.00 Domestic travel and subsistence - Balance c/d 11,400,796.45 TOTAL 11,400,796.45 11,400,796.45 TRIAL BALANCE AS AT END OF FEBRUARY 2023 DESCRIPTION DR (KSHS) CR (KSHS) Balance b/f 11,400,796.45 Proceeds from Dornestic and Foreign Grants 0 - Coinpensation to employees 700,000.00 Domestic travel and subsistence - Balance c/d 10,700,796.45 TOTAL 10,700,796.45 10,700,796.45 TRIAL BALANCE AS AT END OF MARCH 2023 DESCRIPTION DR (KSHS) CR (KSHS) Balance b/f 10,700,796.45 Proceeds from Doinestic and Foreign Grants 0 Compensation to e nployees 700,000.00 Domestic travel and subsistence 1,352,178.00 Balance c/d 8,648,618.45 TOTAL 8,648,618.45 8,648,618.45 TRIAL BALANCE AS AT END OF APRIL 2023 DESCRIPTION DR (KSHS) CR (KSHS) Balance b/f 8,648,618.45 Proceeds from Domestc and Foreign Grants 0 Compensation to employees 700,000.00 Domestic travel and subsistence - Balance c/d 7,948,618.45 TOTAL 7,948,618.45 7,948,618.45 TRIAL BALANCE AS AT END OF MAY 2023 DESCRIPTION DR (KSHS) CR (KSHS) Balance b/f 7,948,618.45 Proceeds from Domestic and Foreign Grants 0 Compensation to employees 700,000.00 Domestic travel ard subsistence Balance c/d 7,248,618.45 TOTAL 7,248,618.45 7,248,618.45 TRIAL BALANCE AS AT END OF JUNE 2023 DESCRIPTION DR (KSHS) CR (KSHS) Balance b/f 7,248,618.45 Proceeds from Domestic and Foreign Grants 30,806,540.00 Compensation to employees 700,000.00 Domestic travel and subsistence, training and advertisement 30,675,588.19 Balance c/d 6,679,570.26 TOTAL 6,679,570.26 6,679,570.26 REPUBLIC OF KENYA THE NATIONAL TREASURY AFFORDABLE HOUSING FINANCE PROJECT BANK RECONCILIATION STATEMENT PROJECT A/C NO.1000528885 2022/2023 FINANCIAL YEAR AS AT 30TH JUNE 2023 SHS SHS Balance as per Bank Certificate 35,036,135.55 Less: - I.Payments in cash Book not yet recorded in Bank Statement (28,403,885.09) Less: - 2.Receipts in Bank statement not yet recorded in Cashbook - Add: - (28,403,885.09) 1LPayments in Bank statement not yet recorded in Cashbook - Add: - 2,Receipts in cash Book not yet recorded in Bank Statement 47,320.00 47,320.00 Cashbook Balance 6,679,570.46 I certify that I have verified the Bank Balance in the Cashbook with the Bank statement and that the above Reconciliation is correct. 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