DCG.80/304/02 15th December, 2016 The Rt. Hon. Speaker of Parliament Parliament of Uganda Kampala REPORT OF THE AUDITOR GENERAL ON THE FINANCIAL STATEMENTS OF ELECTRICITY SECTOR DEVELOPMENT PROJECT (ESDP) FOR THE FINANCIAL YEAR ENDED 30TH JUNE, 2016 In accordance with Article 163, (4) of the Constitution of Uganda 1995 (as amended), I forward herewith audited Financial Statements of the above project for the year ended 30t June, 2016 together with my report and opinion thereon. John F. S. Muwanga AUDITOR GENERAL Copy to: The Permanent Secretary/Secretary to the Treasury Ministry of Finance, Planning & Economic Development The Permanent Secretary, Ministry of Energy & Mineral Development - The Country Representative, World Bank Project Manager, ESDP The Project Accountant, ESDP THE REPUBLIC OF UGANDA REPORT OF THE AUDITOR GENERAL ON THE FINANCIAL STATEMENTS OF THE ELECTRICITY SECTOR DEVELOPMENT PROJECT FOR THE FINANCIAL YEAR ENDED 30TH JUNE 2016 OFFICE OF THE AUDITOR GENERAL UGANDA TABLE OF CONTENTS LIST O F AC RO N YMS............................................................................... .......... il REPORT OF THE AUDITOR GENERAL ON THE FINANCIAL STATEMENTS OF............3 DETAILED REPORT OF THE AUDITOR GENERAL ON THE FINANCIAL STATEMENTS OF THE ELECTRICITY SECTOR DEVELOPMENT PRO3ECT FOR THE YEAR ENDED 3OTH JU N E, 20 16 ....................................................................................................... 5 1.0 INTRO DU CTION......................... ............................................................. 5 2.0 BACKGROUND INFORMATION ....................................................................5 3.0 PROJECT FINANCING ............................................................................. 7 4.0 O BJECTIVE O F ESDP........................................................................... 7 5.0 A UDIT O BECTIVES .................................................................................. 8 6.0 PROCEDURES PERFORMED .............................................. ......... 7 .0 Findings.................... ............................................................................. 10 8.0 D ETAILED FIND INGS ..................................................................--......... 11 LIST OF ACRONYMS ESDP Electricity Sector Development Project UETCL Uganda Electricity Transmission Company SPL Specific Investment Loan MEMD Ministry of Energy and Mineral Development RAP Resettlement Action Plan SDR Special Drawing Rights USD United States Dollar UGX Uganda Shillings GoU Government of Uganda IDA International Development Association REPORT OF THE AUDITOR GENERAL ON THE FINANCIAL STATEMENTS OF THE ELECTRICITY SECTOR DEVELOPMENT PROJECT, MINISTRY OF ENERGY AND MINERAL DEVELOPMENT (MEMD) (IDA CREDIT NO.4988-UG) FOR THE YEAR ENDED 30TH JUNE, 2016 THE RT. HON. SPEAKER OF PARLIAMENT I have audited the financial statements of the Electricity Sector Development Project (ESDP) for the year ended 30th June 2016. These financial statements comprise of the Statement of Sources & Uses of Funds, the Statement of Fund Balance, and Special Account Reconciliation statement together with other accompanying statements, notes and accounting policies. Management Responsibility for the financial statements Under Article 164 of the Constitution of the Republic of Uganda, 1995 (as amended) and Section 45 of the Public Finance Management Act, 2015, the Accounting Officer is accountable to Parliament for the funds and resources of the ESDP. The Accounting Officer is also responsible for the preparation of financial statements in accordance with the requirements of the Government of Uganda, donor regulations and guidelines and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement whether due to fraud or error. Auditor's Responsibility My responsibility as required by Article 163 of the Constitution of the Republic of Uganda (as amended) and Sections 13 and 19 of the National Audit Act, 2008 is to audit and express an opinion on these statements based on my audit. I conducted the audit in accordance with International Standards on Auditing. Those standards require that I comply with the ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement. An audit involves performing audit procedures to obtain evidence about the amounts and disclosures in the financial statements as well as evidence supporting compliance with relevant laws and regulations. The procedures selected depend on the Auditor's judgment including the assessment of risks of material misstatement of financial statements whether clue to fraud or error. In making hose risk ssessmrnts, the AudrWo consick'; purposes of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management as well as evaluating the overall presentation of the financial statements. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion. Part "A" of this report sets out my opinion on the financial statements. Part "B" which forms an integral part of this report presents in detail all the significant audit findings made during the audit which have been brought to the attention of management and form part of my Annual Report to Parliament. PART "A" Opinion In my opinion, the financial statements of ESDP (MEMD) for the year ended 30 June 2016 are prepared, in all material respects in accordance with the basis of accounting set in Note 1(b) to the financial statements and in conformity with the donor reporting guidelines and terms and conditio s, John F.S. Muwanga AUDITOR GENERAL 17th December, 2016 PART "B" DETAILED REPORT OF THE AUDITOR GENERAL ON THE FINANCIAL STATEMENTS OF THE ELECTRICITY SECTOR DEVELOPMENT PROJECT FOR THE YEAR ENDED 30" JUNE, 2016 This Section outlines the detailed audit findings, management responses, and my recommendations in respect thereof. 1.0 INTRODUCTION Article 163 (3) of the Constitution of the Republic of Uganda, 1995 (as amended) requires me to audit and report on the public accounts of Uganda and all public offices including the courts, the central and local government administrations, universities, and public institutions of the like nature and any public corporation or other bodies or organizations established by an Act of Parliament. Accordingly, I carried out the audit of the ESDP to enable me report to Parliament. 2.0 BACKGROUND INFORMATION Project Description The Electricity Sector Development Project (ESDP) is a four year project being implemented by Ministry of Energy and Mineral Development (MEMD) and Uganda Electricity Transmission Company (UETCL). The World Bank approved ESDP as a Specific Investment Loan (SPL) in October 2012 and the implementation commenced in 2013. The objective of the project is to increase the access to electricity supply in the south western region of Uganda. The financing plan provides for approximately SDR 74.10 million equivalent to USD 120 million of IDA credit. Project Components The Project comprises of three components: Part A: Construction of 220 kV Kawanda - Masaka Transmission Line and Related Substations, Part B: Technical Assistance to UETCL and Part C: Community Support Projects and Technical Assistance to MEMD. The sub components of each are outlined here below. A) Construction of 220 kV Kawanda - Masaka Transmission Line and Related Substations * Construction of 137 km of a 220kV double circuit transmission line between Kawanda and Masaka West substations. * Upgrading of the existing 132 kV substation at Kawanda to 220 kV to accommodate incoming lines from Bujagall and outgoing lines to Masaka West substation. * Construction of a new 220/132 kV substation at Masaka. * Upgrading of the substation at Mbarara and * Implementation of the mitigation measures specified in the RAP dated October 15, 2010, including provision of resettlement support and compensation to displaced persons. B) Technical Assistance to UETCL Provision of technical assistance to support: (a) implementation of Part A of the Project through the provision of technical advisory services, training, equipment and operational support as well as through the provision of financial management, procurement, environmental and social safeguards management, communication, and monitoring and evaluation services, including the carrying out of financial audits; (b) capacity building and institutional development of UETCL; and (c) preparation of the feasibility study, environmental and social impact assessment and resettlement action plan for the construction (not as part of the project) of a 132 kV Lira-Gulu- Nebbi-Arua transmission line. C) Community Support Projects and Technical Assistance to MEMD Carrying out of: (a) Street and market place lighting in Masaka municipality; (b) Peri - urban electrification along the Kawanda - Masaka transmission line route; and (c) establishment of Power Sector Information Center within MEMD. Provision of technical assistance to support: (a) implementation of Part C.1 of the project through the provision of technical advisory services training, equipment and operational support as well as through the provision of financial management, procurement, environmental and social safeguards management, communication, and monitoring and evaluation services, including the carrying out of financial audits; (b) the identification, design and construction superVsion of activities under Part C.1 of the project; (c) a review of the Recipient's power sector reform program/ (d) the Sector Working Group; and (e) training and capacity building for the MEMD staff. IMPLEMENTATION FRAMEWORK There are two (2) implementing agencies (MEMD and UETCL) that hold independent designated accounts. Each agency is responsible for the implementation of its component of ESDP and is served through its own designated account. Institutional Arraniements: a) MEMD The Recipient shall ensure that MEMD is maintained at all times during the implementation of the project with composition mandate, staffing and resources satisfactory to the Association for the purpose of ensuring the prompt and efficient overall coordination, implementation, monitoring, reporting and evaluation of the project. b) UETCL Without limitation upon the provisions of paragraph A.1, the Recipient shall ensure that UETCL is maintained at all times during the implementation of the Project, with composition, mandate, staffing and resources and appropriate licenses satisfactory to the Association for the purpose of ensuring the prompt and efficient coordination, implementation, monitoring, reporting and evaluation of Parts A and B of the project 3.0 PROJECT FINANCING The project was financed by Grants from Central Government to the tune of UGX.2,237,000,000. Donor funding and other sources to the tune of UGX.2,532,000,000 bringing the total revenue to UGX.4,769,000,000. 4.0 OBJECTIVE OF ESDP The objective of ESDP is to increase the access to electricity supply in the south western region of Uganda. 5.0 PROGRESS REPORT Consultancy Services for Establishing Ministry of Enery and Mineral Development Power Sector Information Centre. Clearance has been obtained from the World Bank and the Solicitor General and contract siqninq is due in Auqus[ 20 I5. Consultancy Services for Monitoring the Implementation of Resettlement and Community Action Plan. This is on-going and at the year end, about 70% of PAPs were already compensated. Consultancy Services for Implementation Support (Needs Identification, Design and Supervision) For Street & Market Lighting of Masaka Municipality A Consultant has already issued a final report and procurement of a contractor is on- going at bid evaluation stage. Consultancy Services for providing Implementation Support services (needs, identification, design and supervision) for connection of customers in the Peri-Urban areas along the Kawanda-Masaka Transmission Line. The Consultant has already identified customers to be connected and the MOU with UMEME is being finalized. Solicitation of a Contractor to carryout extension works has also commenced. Review of the Power Sector Reforms Evaluation has been concluded and a Consultant identified, awaiting a no objection from the World Bank. Staff Recruitment Three positions of; Procurement Specialist, Environment/Safeguard Officer and the Electrical Engineer have been filled and the individual consultants are already on board. The position of Energy Economist did not attract qualified candidates and has not been filled. 6.0 AUDIT OBJECTIVES The audit was carried out in accordance with International Standards on Auditing and accordingly included a review of the accounting records and agreed procedures as was considered necessary. In conducting my reviews, special attention was paid to establish:- a) Whether the financial statements have been prepared in accordance with consistently applied accoUnting Policies and fairly present the revenues and expenditures for the period and of the financial position as at the end of the period. b) Whether all funds were utilized with due attention to economy and efficiency and only for the purposes for which the funds were provided. c) Whether goods and services financed have been procured in accordance with the Government of Uganda and World Bank Procurement regulations. d) To evaluate and obtain a sufficient understanding of the internal control structure of the organization, assess control risk and identify reportable conditions, including material internal control weaknesses. e) Whether the management complied with the Government of Uganda and World Bank financial regulations. f) Whether all necessary supporting documents, records and accounts have been kept in respect of all activities, and are in agreement with the financial statements presented. 7.0 PROCEDURES PERFORMED The following audit procedures were undertaken:- (a) Revenue Obtained schedules of all revenues collected and reconciled the amounts to the cashbooks and bank statements. (b) Expenditure The payment vouchers were examined for proper authorization, eligibility and budgetary provision, accountability and support documentation. (c) Internal Control system Reviewed the internal control system and its operations to establish whether sound controls were applied throughout the period audited. (d) Procurement Reviewed the procurement of goods and services by the project during the period under review and reconciled with the approved procurement plan. (e) Fixed Asset Management Reviewed the use and management of the project assets during the period under audit. (f) Financial Statements Examined on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessed the accounting principles used and significant estimates made by management; as well as evaluating the overall financial statement presentation. 8.0 Findings 8.1 Categorization of audit findings The following system of profiling of the audit findings has been adopted to better prioritise the implementation of audit recommendations. No Category Description 1 High sinificance Has a significant / material impact, has a high likelihood of reoccurrence, and i the opinion of the Auditor General, it requires urgent remedia action. It Is a matter of hIgh risk or b71h stakeholder interest 2 Moderate Has a moderate impact, has a likelihood of snificance reoccurrence, and in the opinion of the Auditor General, it requires remedial action. It is a matter of medium risk or moderate stakeholder interest 3 Low significance Has a low impact, has a remote likelihood of reoccurrence, and in the opinion of the Auditor General, may not require much attention, though its remediation may add value to the entity. It is a matter of /ow risk or low stakeholder interest 8.2 Summary of audit findings No. Title of finding Significanc e 1 Delayed procurement for Consultancy for the review of the power sector Moderate reforms in Uganda 2 Deayed Contract Execution of Consultancy services for preparation of an Moderate environment and social management plan in the Peri-urban areas 3 Inadequate contract management Moderate 9.0 DETAILED FINDINGS 9.1 Procurement 9.1.1 Delayed procurement for Consultancy for the review of the power sector reforms in UQanda The Ministry planned to procure consultant for the review of the power sector reforms that would assist government address the policy and legal framework, institutional framework and the electricity services structures that are in place. I noted that the procurement process took 19 months to be completed. I particularly noted that it took management 2 months from the date the evaluation was completed on 19th September 2014, to the date when a no objection request was sent to the donors on 18t" November 2014. Such delays in the procurement process prolong the start date of the projects thus affecting the targeted end users. In addition, government incurs commitment charges on unutilised funds. Management explained that the procurement was guided by the World Bank guidelines which, by experience, showed that the procurement process can take up to 15 months from the preparation of terms of reference to contract signature. Management is advised to liaise with the donor with a view to ensure that procurements are carried out in a timely manner to avoid unnecessary delays and associated costs. 9.1.2 Delayed Contract Execution of Consultancy services for preparation of an environment and social management plan in the Peri-urban areas In March 2016 the Ministry procured a consultant for a 12 week implementation timeline with a completion date of May 2016. The consultant was obligated to produce an inception report within one week of signing the contract. I noted from the review of project documents that the consultant produced the inception report on 2nd May 2016 -almost two months after the signing date. I further noted that the contract expired and management granted a contract extension on 31P May 2016, six days after the expiry of the original contract. SLIch delays in contract implementation affect service delivery. Management regretted the fact that the contract had not provided for penalties for non-adherence to delivery timelines and promised in future to ensure such provisions are embedded in all contracts. I advised management to ensure that contractual obligations are adhered to by the consultants or penalty clauses invoked. 9.1.3 Inadequate contract management Regulation 51 (3) of the PPDA (Contracts) regulations 2014 requires a contract manager to prepare a Contract management plan using Form 49 in Schedule 2, and forward a copy to the procurement and disposal unit for purposes of monitoring. Additionally, regulation 53(3) f & g also require the contract manager to appraise the performance of the provider and report on the performance of the provider to the procurement and disposal unit and submit a monthly report on the progress or completion of the contract to the accounting officer and give a copy to the procurement and disposal unit. Contrary to the above, I noted that some procurements lacked Contract management plans, performance appraisals and monthly progress reports of the contracts, Failure to have contract management files contravenes the PPDA regulations and makes it difficult to track the performance undertaken by service providers. 9.2 Status of prior year audit recommendations I reviewed the implementation of the previous year audit recommendations and the following table summarizes the status of implementation and actions taken by management; Issue Recommendation Status Ineligible Expenditure Restore the diverted funds to Implemented (UGX.6,783,760,130) the Project Account for utilisation on planned activities The refund of the diverted and funds was made. ensure that all counterpart funds are deposited on the project account as required under the project agreement Under absorption of funds Management should strengthen Not Implemented its internal capacity to i mpl-ment tli irpj t plannec disbursement of funds by the bank. Manual Financial Management was advised to Not Implemented Management System procure the system to improve security and accuracy of the accounting records. Lack of internal audit The project management was Implemented reviews advised to ensure that internal audits are carried out and reports issued on a regular basis as required in the Project's financing agreement. I advised the project management to ensure that all audit recommendations are implemented for proper accountability and stewardship of the project funds. FINANCIAL STATEMENTS • •s , wrm-- =•m a-a--m -a- a-- i. [HE REPUBLIC OF UGANDA MINISTRY OF ENERGY AND MINERAL DEVELOP (MEMD) GEN E ELECTRICITY SECTOR DEVELOPMENT PROJECT - MEMD FINAL ACCOUNTS FOR THE 12 MONTHS ENDING 30T JUNE 2016 -a-ra- •s--i-a TABLE OF CONTENTS 1.0 BACKGROUND .........................................................................................................3 1.1 Project Description ......... ......................si. ...........................................................3 1.2 Project Components.................................................. .......................................3 2.0 IMPLEMENTATION FRAMEW ORK ...........................................................................4 3.0 PROGRESS REPORT ................................................................................................4 1.0 BACKGROUND 1.1 Project Description The Electricity Sector Development Project (ESDP) is a four year project being implemented by Ministry of Energy and Mineral Development and Uganda Electricity Transmission Company. The World Bank approved ESDP as a Specific investment Loan (SPL) in October 2012 and the implementation commenced in 2013. The objective of the project is to increase the access to electricity supply in the south western region of Uganda. The financing plan provides for approximately SOR 74.10 million equivalent to US $ 120 million of IDA credit. 1.2 Project Components The Project comprises three components: Part A: Construction of 220 kV Kawanda - Masaka Transmission Line and Related Substations, Part B: Technical Assistance to UETCL and Part C: Community Support Projects and Technical Assistance to MEMD. 1.2.1 Construction of 220 kV Kawanda - Masaka Transmission Line and Related Substations * Construction of 137 km of a 220kV double circuit transmission line between Kawanda and Masaka West substations. * Upgrading of the existing 132 kV substation at Kawanda to 220 kV to accommodate incoming lines from Bujagali and outgoing lines to Masaka West substation. * Construction of a new 220/132 kV substation at Masaka. * Upgrading of the substation at Mbarara and * Implementation of the mitigation measures specified in the RAP dated October 15, 2010, including provision of resettlement support and compensation to displaced persons. 1.2.2 Technical Assistance to UETCL Provision of technical assistance to support: (a) implementation of Part A of the Project through the provision of technical advisory services, training, equipment and operational support as well as through the provision of financial management, procurement, environmental and social safeguards management, communication, and monitoring and evaluation services, including the carrying out of financial audits; (b) capacity building and institutional development of UETCL; and (c) preparation of the feasibility study, environmental and social impact assessment and resettlement action plan for the construction (not as part of the project) of a 132 kV Lira-Gulu-Nebbi-Arua transmission ine. -1.2.3 Community Support Projects and Technical Assistance to MEMD Canying out of: (a) street and market place lighting in Masaka municipality; (b) peri - urban electrification along the Kawanda - Masaka transmission line route; and (c) establishment of Power Sector Information Center within MEMD. Provision of technical assistance to support: (a) implementation of Part C.1 of the project through the provision of technical advisory services training, equipment and operational support as well as through the provision of financial management, procurement, environmental and social safeguards management, communication, and monitoring and evaluation services, including the carrying out of financial audits; (b) the identification, design and construction supervision of activities under Part C.1 of the project; (c) a review of the Recipient's power sector reform program/ (d) the Sector Working Group; and (e) training and capacity building for the MEMD staff. 2.0 IMPLEMENTATION FRAMEWORK There are two (2) implementing agencies (MEMD and UETCL) who hold independent designated accounts. Each agency is responsible for the implementation of its component - of ESDP and is served through its own designated account. Institutional Arrangements: 1. MEMD The Recipient shall ensure that MEMD is maintained at all times during the implementation of the project with composition mandate, staffing and resources satisfactory to the Association for the purpose of ensuring the prompt and efficient overall coordination, implementation, monitoring, reporting and evaluation of the project. 2. UETCL Without limitation upon the provisions of paragraph A.1, the Recipient shall ensure that UETCL is maintained at all times during the implementation of the Project, with composition, mandate, staffing and resources and appropriate licenses satisfactory to the Association for the purpose of ensuring the prompt and efficient coordination, implementation, monitoring, reporting and evaluation of Parts A and B of the project 3.0 PROGRESS REPORT Consultancy Services for Establishing Ministry of Energy and Mineral Development Power Sector Information Centre. The Consultant was procured and has provided specifications for the hardware and software requirements and the project has embarked on procurement of the same. Consultancy Services for Monitoring the Implementation of Resettlement and Community Action Plan. As at June 2016, about 80% of the RAP monitoring and supervision was accomplished. The contract with the Consultant ended and the remaining RAP implementation is being carried out by the Ministry and UETCL. Consultancy Services for Implementation Support (Needs Identification, Design and Supervision) For Street & Market Lighting of Masaka Municipality The Consultant has completed the designs and the Contractor is on ground executing the works. III I I f I I I Consultancy Services for providing Implementation Support services (needs, identification, design and supervision) for connection of customers in the Peri-Urban areas along the Kawanda - Masaka Transmission Line. The Consultant identified customers to be connected and an MoU was entered into with UMEME to make connections. A Contractor has been solicited to carryout extension works and the site handed over. Review of the Power Sector Reforms A draft report has been submitted by the Consultant and is currently under review by the Ministry and subsequently to be shared with all Stakeholders. a-- me-- 6 e m--a 4.0 STATEMENT OF MANAGEMENT RESPONSIBILITIES FOR THE YEAR ENDING JUNE 2016 The Deve!opment Credit Agreement (DCA) signed obligates the Government of Uganda to submit certified copies of annual audited financial statements within six months after the end of each fiscal year. Management of Electricity Development Project - Ministry of Energy and Mineral Development is therefore required to prepare accounts for each fiscal year, which shows a true and fair view of the state of the affairs of the project at the end of each financial year and of its operating results for the year. It also requires management to ensure that the project keeps proper accounting records, which disclose with reasonable accuracy at any time, the financial position of the project. Management is also responsible for safeguarding the assets of the project. Management accepts responsibility of the annual accounts which have been prepared using appropriate accounting policies supported by reasonable and prudent judgment and estimates, in conformity with generally accepted accounting practices and in manner required by the Development Credit Agreement and Government of Uganda, Management further accepts responsibility for the maintenance of accounting records, which may be relied upon in the preparation of the accounts as well as adequate systems of internal control, Management is of the opinion that the accounts give a true and fair view of the state of affairs of the project and of its operating results. Project Manager (ESDP) Project Accountant (ESDP) Date Date ** ......... ,a-mm- GOVERNMENT OF UGANDA MINISTRY OF ENERGY AND MINERAL DEVELOPMENT ELECTICITY SECTOR DEVELOPMENT PROJECT (ESDP) IDA CREDIT NO.4988 UG SOURCES & USES OF FUNDS FOR THE YEAR ENDING JUNE 30, 2016 DATAILS Note Budget Actual Budget Actual UGX(m) UGX(m) USD USD Receipts World Bank/IDA Funds 3(iii) 4,270 2,532 1,293,939.39 767,265.00 Government of Uganda 3,850 2,237 1,166,666.66 677,887.00 Total Financing 8, 4,769 2,460,606.05 1,445,152.00 Expenditure by Component: MEMD - IDA Operations Costs 297 497 90,000.00 150,822.00 Capacity building/Training 0 72 0.00 21,828.00 Consultancies 2,079 1,154 630,000-00 349,609.61 Goods/Equipment 15,015 83 4,550,000.00 25,082.00 Peri-urban electrification 1,111 336,563.00 MEMD - GoU Counter-part expenditure 3,850 2,189 1,166,666.66 663,282.00 Total Expenditure 4 21,241 5,106 6,436,666.66 1,547,186.61 Receipts less Exps (13,121) (337) (3,976,060.61 (102,034-61) Opening Balance B/F (1,230) 2,955 (501,711.21) 1,033,95801 Net change in Cash (14,351) 2,18 (4,477.771.82) 931,923.40 Signature: ....... ------ Signature: Project ManagerlESDP Project Accounta D DatL. ,, Date .... 1,,k 6 D a te . .. ... .... .. . .... ... 4 === GOVERNMENT OF UGANDA MINISTRY OF ENERGY AND MINERAL DEVELOPMENT ELECTICITY SECTOR DEVELOPMENT PROJECT (ESDP) IDA CREDIT NO.4988 UG STATEMENT OF FUND BALANCE AS AT 30TH JUNE 2016 Note UGX USD Surplus for the Period (336,714,213) (102,034.61) Opening Balance as at 01.07.2015 Balance at Bank - IDA 2,690,564,531 944,057.73 GoU Balance 145,160,982 50,933.68 Advance to Gou 111,054,810 38,966,.60 Fund Balance as at June 30, 2016 2,618,180,289 931,923.40 Represented by: Balance at DA Bank - IDA 6 2,044,696,385 727,795.00 Project account - IDA 477,354,647 169,910.96 GoU Counter part funds 96,131,845 34,217.44 Fund balance as at June 30, 2016 2,618,180,289 931,923.40 Signature: .Signature ... ...... Project Manager/ESDP Project Accountant/ESDP Date: . - I .. .... ... . D ate . ... ....... ....... x J J JJ I J1 J l I I I GOVERNMENT OF UGANDA MINISTRY OF ENERGY AND MINERAL DEVELOPMENT ELECTICITY SECTOR DEVELOPMENT PROJECT (ESDP) IDA CREDIT N 0.49883 UG SPECIAL ACCOUNT RECONCILIATION STATEMENT ACCOUNT NUMBER: 000170088400045 DEPOSITING BANK: BANK OF UGANDA CURRENCY : US$ DETAILS AMOUNT Note US$ 1. Amount Advanced by World Bank 7 2428,198-99 2- Less total Amount recovered by World Bank 0.00 3. EQUALS PRESENT OUTSTANDING AMOUNT ADVANCED TO DESIGNATED ACCOUNT 2,428,198.99 4. Amount in Designated Account as at 30.06.2016 per Bank Statement (copy attached) - Bank of Uganda 6 727,795.00 5. Plus amounts claimed in previous applications not yet Credited at date of Bank Statements 0 00 6. PIus cumulative Expenditure as at 30.06.2016 7 156224236 Exchange rate Losses 103,944.19 7. EQUALS TOTAl ADVANCE ACCOUNTED FOR 2,393,981.55 L 3xplandtion of any discrepancy between totals appearing on Reconciliation of Line 3 and 7 Line 7 Amount 2,393981.55 Add: MEMND-UGX Balance 6 34,217.44 Line 3 Amount 2,428,198.99 Signed: .... ....... ... Signed ... .. For: Pcemanent Secretary/MEMD CcordinatFo Manager ESDP D F.te .: . ... D sate:. NOTES TO THE ACCOUNTS 1 - ACCOUNTING POLICIES a) Legal Status Electricity Development Project (ESDP) is a Government of Uganda project funded by World Bank (IDA) under Development Credit Agreement Number 49880 UG signed on 2nd September 2011, became effective on 23rd October 2012 and the closing date is set as 28th February 2017. b) Basis of Preparation of Accounts The accounts have been prepared on the basis of cash accounting. Revenues and Expenditures have been recognized in the accounts when funds are received and payments are made, Expenditures on fixed assets are expended upon payment. c) Reporting Currency These accounts have been prepared in Uganda shillings, except for the IDA Designated statements. Translated versions of the statements are also incorporated in United States dollars. d) Foreign Exchange Translation Expenditures and closing balances have been translated using the closing rate method 2 - OPENNING BALANCES AS AT 01/JULY 2015: IDA (USD) MEMD Designated Account 836,122.63 MEMD Project Account 107,935.10 Total 944,057.73 3: FUNDS RECEIVED FROM WORLD BANK - IDA Withdrawal Applications DA (USD) SC (USD) Total (USD) 01(ESDP- MEMD/IDA) 615,330.00 615,330.00 02(ESDP-MEMD/IDA) 749,032.63 749,032.63 03(ESDP-MEMD/lDA) 296,551.37 296,551.37 04(ESDP-MEMD/1DA) 767,265.00 767,265.00 Total 2,428,198.99 - 2,428,198.399 4 - TOTAL PAYMENTS IDA (USD) TOTAL (USD) Paid through DA 1,562,242.36 1,562,242.36 Paid through SC - Total 1,562,242.36 1,562,242.36 г г г i � � г г � г i � г t г г г � � t 5(i) Receipts and payments Statement for the year July 2015 - June 2016 - IDA IDA CREDIT NO.4988 UG QUARTERLY RECEIPTS AND PAYMENTS STATEMENT FOR THE PERIOD JULY 2015 TO JUNE 2016 QTR1 QTR2 QTR3 QTR4 TOTAL USD USD USD USD USD Receipts through SC 0.00 0.00 0.00 0.00 0.00 Receipts through DA 0.00 0.00 0.00 767,265.00 767,265.00 Total Receipts 0.00 0.00 0.00 767,266.00 767,265.00 Expenditures Per Category MEMD 54,666.57 93,018.19 476,186.68 260,033.17 883,904.61 Total Expenditures 54,666.57 93,018.19 476,186.68 260,033.17 883,904.61 Balance CIF (54,666.57) (93,018.19) (476,186.68) 607,231.83 (116,639.61) 6 - CLOSING BANK BALANCES AS AT 301JUNE/2016: US$ UGX Total US$ MEMD (US$) 727,795.00 727,795.00 MEMD(UGX) 477,354,647 169,910.96 GoU(UGX) cin 1--Al R 5 34,217.44 Total 727,795.00 573,486,492 931,923.40 7- Cumulative performance of Designated Account - IDA As at 30/06/2015 Durin_q_the Year As at 30/06/2016 Receipts 1,660,933.99 767,265 00 2,428,198.99 Payments 677,889.67 883,904.61 1,562,242.36 Balance 983,044.32 _CL6,639.61) 865,956.63 [ I I| 8 - STATEMENT OF MANAGEMENT REPRESENTATION. The Management of Electricity Sector Deve&oprnent Project (ESDP/MEMD) confirms that the financial statemnts have been prepared according to International Aucounting Stardards and carry no financial misstatements what so ev'er. Prepared by: Name Signature .... TitleÉ nLV Date. - .. .. Approved By: Name Signature _- tHe... L.j. i. ~ Date - 4ŽlLIsJ →LL…日一