ENHANCING THE CLIMATE RESILIENCE OF THE WEST COAST ROADSCF-PPCR GRANT NO.TF013579

Project Financial Statementsfor the Financial Year ended 3 0th June 2016

1. Management Verification

2. FY15/16 Project Financial Statement Ending 30th June 2016

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ENHANCING THE CLIMATE RESILIENCE OF THE WEST COAST ROADSCF-PPCR GRANT NO.TFO 13579

Project Accounts for the Financial Year Ended 3 0 th June 2016

I, Lavea Tupa'imatuna lulai Lavea, Chief Executive Officer, of the Ministry ofFinance, Apia, Samoa verify that: -

the accompanying Project Accounts for the year ended 3 0th June 2016, are to the bestof my knowledge, a correct and accurate record of transactions for the said period.

(Lavea u imatuna lulai Lavea)CHIEF E ECUTIVE OFFICER

Dated: 19 th May 2017

ENHANHANCING CLIMATE RESILIENCE FOR WEST COASTROAD PROJECT (ECRWCR)

FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 30 JUNE 2016

ENHANCING CLIMATE RESILIENCE FOR WEST COAST ROAD PROJECTFINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2016

CONTENTS Page

1. Report of the Auditor 1

2. Certification by Management 2

3. Statement of Cash Receipts and Payments 3

4. Statement of Comparison of Actual and Budget Amounts 4

5. Notes to the Financial Statements 5-7

S. Supplementary Schedule to Comparison of Actual and Budget Amounts 8

Telephone: 27751 P.0 Box 13Fax: 24167 APIA, SAMOAEmail: lnfo@audit.gov.wsWebsite: www.audiltgov.ws

Please address all correspondencesto the Controller and Auditor General

AUDIT OFFICE

REPORT OF THE AUDIT OFFICE

TO THE MINISTRY OF FINANCE OF THE GOVERNMENT OF SAMOAWe have audited the accompanying financial report for Enhancing Climate Resilience for West Coast RoadProject categorized as SCF-PPCR Grant No. TF 013579 for the financial year ended 30 June 2016, whichcomprises the Statement of Receipts and Payments, Statement of Comparison of Actual and Budget amounts,and a summary of significant accounting policies and other explanatory notes.

Responsibility for the Financial ReportThe accompanying set of financial report is the responsibility of the management of the Implementing Agency- Land Transport Authority supported by the Executing Agency - Ministry of Finance. The policy of the NationalExecuting Agency - Ministry of Finance, is to prepare the financial report in accordance with the requirementsof the Donor - World Bank and on the cash disbursements basis. On this basis, donor funds are recognizedwhen received and expenditure is recognized when paid rather than when incurred.

The Implementing and Executing Agencies are also responsible for monitoring and ensuring all relevant projectarrangements are in accordance with the terms and requirements agreed upon with the Donor, and ensurethat all relevant program arrangements and activities are aligned with these terms and requirements. They arealso responsible for any such internal control it determines as necessary to enable the preparation of financialreports that are free from material misstatement, whether due to fraud or error.

Auditor's ResponsibilityOur responsibility is to express an opinion on these financial reports based on our audit. We conducted ouraudit in accordance with International Standards on Auditing (ISA). Those standards require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assurance about whether thefinancial reports are free from material misstatements and that funds provided for the program wereexpended in accordance with the Grant Agreement by World Bank.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in thefinancial reports. The procedures selected depend on the auditor's judgment, including the assessment of therisks of material misstatement in the financial reports, whether due to fraud or error. In making those riskassessments, the auditor considers internal control relevant to the preparation of the project financial reportsin order to design audit procedures that are appropriate in the circumstances, but not for the purpose ofexpressing an opinion on the effectiveness of the project's internal controls. An audit also includes evaluatingthe appropriateness of accounting policies used and the reasonableness of judgments made by management,as well as evaluating the presentation of the financial reports.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for ouraudit opinion.

OpinionIn our opinion, the financial statements present fairly, in all material respects, the Receipts and Payments ofthe Enhancing Climate Resilience for West Coast Road Project for the financial year ended 30 June 2016.

We have obtained all the information and explanations that we required, to conclude that management haskept proper accounting records that support and validate the financial information disclosed in the financialreport and the funds for the project have been used for purposes of the project in accordance with therequirements of the Grant Agreement.

Apia, Samoa Fuimaon all'G Afele19th May 2017 CONTROLLER AND AUDITOR GENERAL

ENHANCING CLIMATE RESILIENCE FOR WEST COAST ROAD PROJECTCERTIFICATION BY PROJECT'S MANAGEMENTFOR THE YEAR ENDED 30 JUNE 2016

We certify that the attached financial statements for the Enhancing Climate Resilience of the West Coast Road Project (ECRWCR)

comprising of the Statement of Cash Receipts and Payments, Statement of Comparison of Actual and Budget and Notes forming part

of the financial statements for the period from 01 July 2015 to 30 June 2016 (12 Months):

a) gives a true and fair view of the matters to which they relate; and

b) have been properly drawn up in accordance with the accounting policy described in Note 2 to the financial statements.

We are not aware of any circumstances which would render any particulars included in the financial statements to be

misleading or inaccurate.

We authorise the attached financial statements for issue on /.!... / . t /.. .on behalf of the Management of

the Enhancing Climate Resilience of the West Coast Road (ECRWCR).

Sign Signature

Lavea Tupa'imatuna lulai Lavea Leasi Vainalepa Galuvao

CHIEF EXECUTIVE OFFICER CHEEF EXECUTIVE OFFICER

Ministry of Finance Land Transport Authority

Apia, Samoa Apia, Samoa

Page 2

Statement of Cash Receipts and PaymentsEnhancing Climate Resilience for West Coast Road Project

For the 12 months ended 30 June 2016

GRANT NUMBER TF 013579Currency $WST 30 June 2016 30 June 2015

Receipts/Payments by: Receipts/Payments by:Notes GOS Third Parties GOS Third Parties

Receipts 2.6

IBRO TF 013579 4 506,363.43 502,189.20IBRD TF 013579-Direct payments - -GoS - Pre Financing 5,9 308,560.05 466,565.44Reimbursement - GoS Pre-financing (466,565.44)GoS Counterpart Funds 6.7 46,28401 69,984.82

Total receipts 394,642.1 1,038,739.5

Payments 2.71.2 Design and Supervision Services 118,486.48 265,554.442.1 Assessment of Samoa Road Network 1,031,806.58 -2.2 Climate Change Specialist 18,917.50 4,491.023.1.1 Consulting Firm as PMU 375,693.41 742,881.21Bank Charges 162.75 120.44

Total payments 7 1,545,066.72 1,013,047.11

Increasel(Decrease) in Cash (1,150,425) 25,692

Foreign Currency Gains and LossesBank Revaluations 9,152 123,292Total Foreign Currency Gains and Losses 9,152 123,292

Net Cash Movement (1,141,273) 148,984

Summary Cash Balances:Opening Balance 1,282,000 1,133,016Plus Net Cash Movement (1,141,273) 148,984

Closing Balance 2.5, 3 140,727 1,282,000

Page 3

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ENHANCING CLIMATE RESILIENCE FOR WEST COAST ROAD PROJECTNOTES TO THE FINANCIAL STATEMENTS30 JUNE 2016

1. GENERAL INFORMATION

The Government of Samoa (GoS) through the Implementing Agency - Land Transport Authority (LTA), has received agrant for assistance for Enhancing the Climate Resilience of the West Coast Road Project (CRWCR) from theInternational Bank for Reconstruction and Development (IBRD) acting as an implementing entity of the Pilot Program forClimate Resilience (PPCR) under the Strategic Climate Fund (SCF). The CRWCR is a land transport infrastructureproject with the development objectives to improve the climate resilience of the West Coast Road and enhance Samoa'scapacity to develop a more climate resilient road network.

The Enhancing the Climate Resilience of the West Coast Road Project Grant agreement was officially signed on the 28thJanuary 2013. The value of the Grant is USD 14,800,000,00. The closing date of the project is 31st August 2018.

CRWCR is implemented under the overall guidance, coordination and monitoring of the Project Steering Committee. TheProject Management Unit, IPA Ltd, helps to manage and implement CRWCR and ensure that the World Bank's fiduciary,safeguards and reporting requirements are met.

A Special Purpose Account or Designated Account (DA) for the CRWCR was established at the Central Bank of Samoa(CBS),and is governed by the Grant Agreement. The purpose of the CRWCR DA is to disburse funds for Projectactivities. The CRWCR uses four disbursement methods: (a) advances into the DA; (b) direct payment; (c) reimbursementof GoS pre-financed expenditure; and (d) special commitment. The CRWCR is to be implemented in accordance with theprinciples, structures and responsibilities set out in the Grant Agreement.

2.

2.1 Basis of PreparationThey are prepared on the basis of historical Cash Basis IPSAS Financial Reporting Under The Cash Basisof Accounting.The accounting policies have been applied consistently throughout the period.

2.2 Reporting EntityThe financial statements are separate financial statements for the ECRWCR project and do not form part of anyGovernment Ministry or Government State Owned Financial Statements.

2.3 Definition of Categories of PaymentsPayments made under "GoS" are payments made by the GoS and made by the World Bank, Payments madePayments made by 'Third Parties' are payments made by Others.

2.4 Reporting CurrencyThe financial statements are presented in Samoan Tala (WST$).

Transactions in currencies other than WST are translated into WST using the actual exchange rate applied by the CBS(where the transaction are paid from the DA) or at the applicable rate ( where the transactions are paid by Third parties)

2.5 Cash BalancesCash balances is represented by the CBS DA for the Project.

Page 5

CNHANCING CLIMATE RESILIENCE FOR WEST COAST ROAD PROJECT4OTES TO THE FINANCIAL STATEMENTS.0 JUNE 2016

2.6 ReceiptsGrants are received from the World Bank for IBRD TFOl 3579. The amount is based on a request from the GoSthrough the MOF for approval and transfer from the World Bank. Receipts also comprise payments made directlyby the World Bank to the vendors for the Project, and prefinanced expenditures the GoS to vendors beforereceipt of reimbursement from The World Bank. In addition, GoS contribution (counterpart funds) for theproject, which is a total of USD2.22m based on the Project Appraisal Document (PAD).

2.7 PaymentsPayments relate to all expenditure payments made to suppliers for goods and services relating to the Project.Payments are certified and approved by the CEO-LTA and CEO - MoF for projects activities implemented byrespective agencies,and are subsequently paid by the MoF in accordance with the Program Operational Manual (POM)

Payments are made in line with the Grant Agreement between the Independent State of Samoa and the IBRD-World Bank. Any variation to the Project Agreement would be submitted h LTA to MOF for consideration

30 JUNE 30 JUNE3 CASH AT BANK 2016 2015

S SCBS DA 06-083:

Balance at year end - USD 55,255 499:980Balance at year end - WST (CBS 0.3926USD/WST) 140,742 1,282,000

140,742 1,282,000

4 RECEIPTS - IBRD TF 013579 FY1S16 FY1415CBS DA 06-083 506,363 502,189Direct Payments

Total* 506,363 502,189*Exclude GoS pre financed amounts.

5 RECEIPTS - GoS Prefinanced FY1516 FYI415S S

Eligible project expenditures prefinanced by the GoS and reimbursed 308,560 466,565from the IBRD TF0 13579 GrantTotal 308,560 466,565

6 GoS Counterpart FundsActual GoS contribution for the year, utilised mainly for VAGST for project payments. For FY15 16, and year to date actual,was mainly for the PMU VAGST payments that were not eligible for financing under the TFOI 3579.

7 TOTAL PAYMENTSFY15/16 FV14/15

S 5

CBS DA 1,190,222.66a 476,496,85bDirect Payments - -GoS Prefinancing 308,560.05 466,56544

GoS Counterpart Funds 46,284.01 69,984,821,545,066.72 1,013,047.11

Inclusive of VAGST amount of SATI52,757 82 equivalent to USD59,127.02 , to be reimbursed by GoS counterpart funds in FY1617.

Inclusive of VAGST amount of SAT25,102 95 equivalent USD1 1,077.93 to be reimbursed by GoS counterpart funds in FY1617.FY1516 FY1415

S $1. Improving Climate Resilience of West Coast Road 15,454.86 -

2 Vulnerability Assessment of the Receipienfs Road Network 134,583.47 -3. Project Management 2,719.49 25,102.95

152,757.82 25,102.95

'First year of appropriation in the GoS budget estimates is FY1617 with the approved budget of SAT214,204. This amount would be

utilised to reimburse TF013579 funds as in ' and b In addition, the appropriate Journal Entry for dand' below.dTotal amount of VAGST for prefinanced expenditures on PRACT16; SAT37,847.95 and GLACTI6 (MoF) VAGST budget account

1-9052-QO1 -776101: SAT8,796,05.

'Total amount of VAGST for prefinanced expenditures on PRACTI 5.

Page 6

ENHANCING CLIMATE RESILIENCE FOR WEST COAST ROAD PROJECTNOTES TO THE FINANCIAL STATEMENTS30 JUNE 2016

8 FACILITY AVAILABLE

Grant in historical figures including undisbursed balances at the end of the year.

Signed Amount Disbursed Remaining BalanceIBRD TF013579 USD 14,800,000 USD 897,837 USD 13,902,163

9 SUBSEQUENT EVENTSGoS - Pre Financing amount of 308,560.05 , to be reimbursed from IBRD TF013759 in FY 1617

Page 7

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