GrenadaSNAP P123128 Audit Report Financial Year Dec 2015

AUDIT DEPARTMENT AUDIT REPORT NO. 5 OF 2016 REPORT OF THE DIRECTOR OF AUDIT GRENADA on the Resources Managed for the period from 1 January 2015 to 31 December 2015 by the Project Co-ordination Unit within the Ministry of Finance and Energy for the Safety Net Advancement Project (SNAP) THE DIRECTOR OF AUDIT AUDIT DEPARTMENT Report of the Director of Audit, on the Resources Managed for the period from 1 January 2015 to 31 December 2015 by the Project Co-ordination Unit in the Ministry of Finance and Energy for the Safety Net Advancement Project (SNAP). Philbert Charles Director of Audit (Ag.) Audit Report No. 5 of 2016 SAFETY NET ADVANCEMENT PROJECT TABLE OF CONTENTS Pages List of Abbreviations ............................................. ............... 2. Transmittal Letter ......... .......................... ............. 1 1 Summary of Xlain Audit Procedures......................................2 4. Auditor's Report on the Financial Statements and Compliance with Credit Agreement, L.aws and Regulations........................................4 5m Financial Statements ...................................................7 Sources and I [ses of Funds...................... ........................ ...7 Uses of Funds bN Project Activitx.......... ............ ..... ........8 Schedule of Applications for ithdraa.... .........9 E -xpenditure Reports under ('omponent ............ ......... ('ash Forecast tr Component ......................11 Notes to the Financial Statements ...............1.......... ......12 6. Report on the Statement of the Segregated Account.......................... 16 Segregated AcCOt L eonci at........... ....... ............ 17 7. Report on the Curnmulatike Status of the Disbursement Linked Indicators ......18 Statement of Ctimulative Status of Disbursement Linked Jndicators.... ......0.....2 8. Report on the Statement of Request for Replenishment......................23 9. Report on Internal Control ................................................25 Page List of Abbreviations Ag. - Ating BNIS - Beneficiary Man agement Information System CCT Conditional Cash Transfer D1A -)esinated Account DI Is - )isbursement Linked Indicators 1)RO - District Rev\enluC Otlce ECD - Eastern (Caribbean Dollar GoG - Government of(ireiiada IDA- International )eclopeint Association IEC - Information and 1EIducation Campaign IFRs Interim Financial Reports INTOSAI - International Organization ef Supreme Audit Institutions ISSAs -International Standards of Supreme Audit Institutions IUFRs Interim Unaudited Financial Reports MIS \anagement inlöriiation System MOE - MiniEstr of ducation iOl 1 \inistry of 1 ealh MOSD(H) - Ministry of Social i)e elopmcnt (and 1 ousing) N/A Not Appllicable PAD -roieet Appraisal )ocumenlt PCUi Project Co-ordination U:ni PMTN - Proxy Means Test SEED - Support fr 'ducation. 1Empowerment and )evelopment SNAP - Salety Net Advancement ProjcCI SSS - Single Souire Selectlon W13 - World Bank XCD3 -Fastem Caribbean Dollar P a g e ii Ni~~~~~l 'hi VO,i I( El ~j ;o [S 4er shoul ge quoted IGRIENADA, .WI. Tet \. ie47 4 Z--n6 651i> 15 April 2016 Nis. Margaret Be fUn Project Co-ordinator Proleet Co-ordination (lni NIinistr of I inance and Energ\ GCNA Building ST. GEORGE Dear Ms. Belf on. I have audited the Resources Manag,ed fOr the period from I January 2015 to 31 December 2015 by the Projeet Co-ordination IUnit in the Ministry of Finance and Energy for the Safety Net Advancement Project (SMNAP). In accordance wih the I ernis of Relference for 1inancial \uditors and the International Organialon of Supreme \udit Instutions 1N 1 )\l > auditing standards. I hereby submit my report to those clirged ih goer enance tor consideration and necessarv acte11. Yours respectfully, Philbert Charles DIRECTOR OF AUDIT (AG.) Page 1 Summary of Main Audit Procedures Audit of the Resources Managed for the period from I January 2015 to 31 December 2015, by the Project Co-ordination Unit in the Ministry of Finance and Energy under the Credit No. 4993-GD, Safety Net Advancement Project (SNAP) Audit Objectives The overall audit objectives are to express an opinion on the project's financial position at the end of the period audited, to report on the adequacy of the internal controls and to express an opinion on the compliance with the credit aoreement and applicable laws and reculations. 1he specific objectives of the Audit of the Project arc to: SIssue an opinion as to whether the ProJect financld statements present taidN in all material respects, the financial position of the project. the funds received and the dishursements made durin- the period audited, as well as the cumulativc investments at the end of the period, in accordance with international accounting standards and the requirements of the respectile agreements with the Bank and other co-tinanemy ortganzations: * Issue an opinion with respect to the implementing entity's compliance with the terms of the credit agreement and applicable laws and regulations (with regard to the financial aspects): * Issue an opinion on whether the supplementary financial inflorniation for the Project is thirlv presented in all material respects: * Issue a report with respect to the adequacy of the internal control structure of the implementing institution with regard to the project: * Issue an opinion as to: (a) whether the expenditures included in the Interim ULnaudited Financial Monitoring Reports (11 R's) arc eligible for financing under the relevant agreement and supported by appropriate documentation. (b) whether credit funds have been used only f'or Project purposes. in accordance with the requirements established in the corresponding agreements with the international organizations: * Issue an opinion as to whether tlhile Statement of the Desiglnated Account and Pro ject Accounts used for managing the funds provided by the Bank presents falirl the akilabilit of lUnds it the end of the period audited. as we dll as the idasaonsmadic diuring-1 the sam 1 priod. in accordance with the provisions IOr the use of the funds established in the cor esponding, agreictilts w ith the Bank: and Page 2 * Issue in oplnion as to (a) \0hether the I Dishursemni Iinked Indicators (DLls) were veritied h the Accountant Generals 0111ce and (bI whether these milestones were achie\ ed. Audit Scope and Main Procedures [he audit covered the activities perlbrmed during the fiscal year I January 2015 to 31 December 2015 and was conducted in accordance with the International Standards of Supreme Audit Institutions (ISSAls) issued by the International Organization of Supreme Audit Institutions (IN IOSAI). The audit inclCUded the tollowilng procedures: * RcvIexx o rielxtint dOcumentations, * Review1 ofthe Proect C o-ordination I1nit's Iicn l controlI structure. * Substantixe and compliance tests to determine whether the accountino system and records in use are in accordance w\ ith the accounting policies, guidelines and procedures as well as releNant laws and regulations. * Audit tests conducted on transactions in order to achieve the audit objectives included: o Performing substantive tests on transactions for the period. lAnal tical p-oced1ures on kank reconi 1ations aid inaneal statements, and Re\ ll of le country's taccountliq te \ Smatrtrcana) to ensure reveiue and expenses wxcrI recorded. P a g e 3 Al DI DEPAR l2E2 l umber~S an oa T. GEORG VS [elhit,11 h d G6RENADA, SA. DIRECTOR OF AUDIT REPORT Project Co-ordinator Project Co-ordination Unit Ministry of linance and Energy\ GCNA Buildiin ST. GEORGE'S REPORT ON THE FINANCIA STATEMFNTS Audit of the Resources Managed for the period from 1 Januan 2015 to 31 Decernber 2015, by the Projeet Co-ordination t nit in the Ministr of Finance and Energy under the Credit No. 4993- 1), Safety Net Advanceenint Project (SNAP) 1-have andudited the accoipany ing linancial statements of the Sa ety Net Advancement Project (SNAP) financed under Credit No. 4993-GD swlhich comprised the Statement of Sontrces and Uses of Funds as at 31 December 2015 notes to the financial statements and other explanatory schedules and statenents lor the year then ended These Iinancial statements hase been prepared by management hased on Section 4.09 of tlie 1 nternatienal Deelpment Association (IDA) General Conditions for Credit and Grants. Management's Responsibility for the Financial Staterenits Management is responsible ter the preparation ef these linancial statements in accordance switl the financial reporting prVi sions of Sectin 4.01) International )ev elopmient Association (IDA) General Conditions f r Credit and Granis and for such internal control that managenent determines is necessary to enable ite preparation of financial statements that are frec froi material misstatement, whether due to fraud or error. Auditor's Responsibility My responsihilit is to express an opinion on these financial statements based on n audit. I cOnducted the audit in accordance with the International Standards of Suprenie Audit Institutions (ISSAIs) issued bv the international Organiation of Supreme Audit Institutions (1NTOSA1), World Bank Gtidelines and the Government ol (renada policies. procedures and regulations. Those standards require that I comply ssith ethical requirements and plan and perform the audit to obtaln reasonable assurance whether the financial statements are frec fron material Misstatenent. Page 4 An audit involves perfbrming procedures to obtain audit evidence about the amounts and disclosures in the financial statements, he procedures selected depend on the auditors' judgment. including the assessment of the risks of material misstatement of the financial statements. whether due to fraud or error. In making those risk assessments., the auditor considers internal control relevant to the entity's preparation and fair presentation of the linancial statements in order to design audit procedures that are appropriate in the circumstances bUt not for the purpose of" expressing an opinion on the effectiveness of the entitv s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as w elI 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 n audit opinion. Opinion In ny opinion, the project financial statements present fairly. in all material respects, the financial position. the funds received and the disbursements made during the period audited, as well as the cumulative investments at the end of the period, of the Safety Net Advanccment Project thr the year ended 31 December 2015 and in accordance with Section 4.09 of the International Development Association (IDA) General Conditions for Credit and Grants. Basis of Accounting and Restriction on Use Without modifing my opinion. I draw attention to note ) to the financial statements, which describe the basis of accounting. T'he financial statements are prepared to assist the Project Coordination Unit to meet the requirements of the World Bank. As a result, the financial statements may not be suitable for another purpose. REPORT ON COMPLIANCE Management's Responsibility for Compliance In addition to the responsibility for the preparation and presentation of the financial statements described above, management is also responsible for ensuring that the actilities. financial transactions and information rellected in the 11nancial statements are in compliance with the covlenants of the loan/credit agreement and applicabl1c law s and regulations. Auditor's Responsibility In addition to the responsibility to express an opinion on the financial statements described above. my responsibility includes expressing an opinion on whether the activities. financial transactions and information reflected in the financial statements are. in all material respects. in compliance with the covenants of the loan/credit agreement and applicable laws and regulations. This responsibility includes performing procedures to obtain audit evidence about Page |5 whether the sources and uses Of funds have been applied to the purposes intended. Such procedures include the assessment of the risks of material non-compliance. I belicve that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion. Opinion on Compliance In my opinion, in all material respects, the activities. financial transactions and inforation reflected in the linancial statements are in compliance with the authorities which govern then. Philbert Charles Director of Audit (Ag.) Audit Department GRENADA 15 April 2016 Page 6 Grenada Safety Net Advancement Projeet Credit No. 4993-GD Sources and Uses of Funds For the year ending December 31 2015 (Expressed in Eastern Caribbean Dollars) 1 Jan - 31 Dec 2015 C umul aiKe RICEIPTS Actual Budgeted Variance Actual Budgeted Variance GO(G Funds GOG Cond. Cash Transfer 10, 5 1.4 500 13274,614(00 3,223.1 99.00 48.359,930.00 44,249,228 00 -4 1 10 70 ,00 TA Funding 0.00 000 0.00 0.00 0.00 . 00 World Bank Financing WB Cond. Cash Transfer (CF) 1,344,100.00 1.3 0.0 6,014,137.55 8 076,400,00 2062 .262 4 TA Funding 206.681 90 300.000, 00 93.3 17. 10 890,820.58 1 .035.000,00 144 , 7942 Retroactive Financing 0.00 0.00 0.00 0.00 0,00 0.00 Direct Payment 0.00 0.00 0.00 0.00 0.00 0.00 01er Miscellaneous Income 866.81 0.00 -866.84 6x28276 0.00 -6.282.76 TOTAL RECE[PTS I2 103 0647 4 I5,418.714.00 3,315649.26 55,2-71,170,89 5 3,60 28 00 1,910 542,W9 LESS EXPENDIIN 1)I[I.RIrRS (By Coniponents) I - Conditional Cash Iransfer (G(1G( WB) 11.895.515.00 15,1182~14,00 3,223,199.00 54.374.067,5 52,325.628.00 -2,048,43 9. 2 - AOSI) Implementation Capacity Improvenient 364.411.62 560,000.00 1955 88.38 865.048-22 1,175,500-00 310,45 178 3 - Retroeat i v Finanecing 0.00 0.00 0.00 000 0.00 0.00 TOTAL EXPFNDITURES 12,259,926.62 15,678,714.00 3.41 8,'87.38 55,239, 15.,7 53,501,128.00 1 ,737,987.-7 RI CI IP1 I .ZSX F\PLNDIIllRE -156.861.88 32,05512 Add: ILoreign Exchange .Adj 0.00 -0,02 N f R P (Cl IP lI" -156.861.88 32.05510 Openg Balanees Designated \ccount 171.896.92 Proeet Oper ations \cunt 171021.06 P]ojeet Saings \eount 0.00 total Opening Cash 188.916.98 Net Avilable Cash 32,055.0 32,055.10 ( 1smnu Balances Designated Account 22.274.59 Proj,ect Operations Acount 9.780.51 Projeet Savings Account 0 00 Total Closing Cash Balances 32,055.11 32,055.10 Exchange Rate: IUSD XCD)2.6882 Note Cash receipts for Cash transfers. from Government of Grenada, were received direefly 1y the SEE) Unit, TIhese flnds did not pass through the project's aceount. P.repared b. C.... .... ...........Ap . Carlene Sand -e si Margaret Be [fon Project AccounianTi Projet Coordinator, PCL Page 17 Grenada Safety Net Advancement Project Credit No. 4q93-GD Lses of Funds by Project Activity For the year ending December 31 2015 ([pressed in Eastern Caribbean Dollars J an - 3 I Dec 20)1 5 tumulati e ______________ Component I Co-financiing of Conditional Cash Transfer, 1 89, 5<1001 I l8 7 & 4.00 ,22 1 199 00 54,374,067 5 5 62268 00 -2o48 -4 9 Component 2 TA to Improve Iniplmentation Capacity of NIOSI) Reu sAr-ea A - lilnstituii lliitugt and Co, rag 0 00 0ý 0i 0 0 0 00 01 01 i0 R esulI;s Area 1 - Bene iUciary (>utreach l argeinu 98)2 64 510.000 004 6 0 !73 17 638UU7 9; 25 l41000 0 771110 R{esus Are C - \IS i 7X'1 i i5 210.000 00 21288 45 l 88,71 1 55 300,000 lill,i 2813) Rlts4IIl Area Pa -0 oIicion 00 000 400 2 0 10 9032V52 72,000 00 -18 Ss Int(iuiol Support I raini 1 I 1 000 00 1 A00.00 100390 86 251644,0010 - 90 86s 1p2ratingr oss '1' , 187 3,48 7.282 462984.36 54,00077 401 |7i 64 4 ontngec Plan 9.11 00 271l0 411 27I 000 001.001 27,000114 00'11714 110 Tota 12,259,926,62 15,678,714.004 3.4171;7738 55239JII5.77 53,50L12800 -1.O98.7 Pag.e 8 Grenada Safety Nets Advancement Project Credit No. 4993-GD Schedule of Applications for Withdrawal For ie Year [nded 31 December 2015 (Expressed in Eastern Caribbean Dollars) Application Amount Requested Amount Recuived Date N o. U SI) (1) 1 SI) E1) Remarks I 3-Jn- 5 13 7=5 .24 200 ON20 .) 7618X324 TM06A6190 Advanc awe Wto fsi natd Account. Received 16 JAn 201 1 3-JAn- 5 14 250JH0M,M) 672M) 0M 2M0K000 672100.00 Reimhursemeni. Received 22 fan 2015 13-Jan- 5 15 29M)0060 H(, a1) (il 20M110 1 67A0N)) RimuWWMnL ROc iled lIAn N15 21-JuL-i5 ]6 0(10 WM11) (1M DIH) W1 amcmnmtion of cpnditne H 22-Jul- 5 17 20U 62(1A WA2.0i(0) 29 R W WWM 00 72j (S(1 \pp] icatin deleted b\ I pn Tin I R1mlCturc at proict _______Pa,X3 2,832_90 9 .24 2.22IS12.90 Pagei 9 Grenada Safety Nets Advancement Project Credit No: 4993-GD Expenditure Reports under Component 1 For the Year ending December 31, 2015 (IXpressed in Eastern Caribbean Dollars) Eligible Expenditure Approved for 2015 per Agreed BudCt Line 13,774.614.00 Veriled Expenditures during the Month of JanuarN 2015 803 67000 Verified Expenditures during the Month of februarN 2015 806.170.00 Veritied ExApenditures during the Month ot March 2015 811 260.00 Verified Expenditures during the Month of April 2015 826,915,00 VeriIled IExpenditures during the Month of .May 2015 845,450.00 Veritied Expenditures during the Month of June 201 5 889,57500 Verified Expenditures during the Month of July 2015 679,40000 Verified Expenditures during the Month of August 2015 888.450,00 Verified Expenditures during the Month ot September 2015 921.875.00 Verified E-xpenditures during the Month of October 1015 960,77500 Verified Expenditures during the Month of November 1015 1 057,350,00 Verified Expenditures during the Month of December 2015 1.000.25 00 Total Verified Expenditure for the year (of Which Retroactive Financing) Verified BY: Name of Official: Ambrose Louis - Obike Title of Official: Acountant General Office of the Accountant General Exchange Rate: iS= 2.6882 XCI) Details of the Expenditures are kept at the MOSD and PCU Page |10 Grenada Safety Nets Advancement Project Credit No: 4993-GD Cash Forecast for Component 2 For twelve(12) Months to 31 December, 2016 in XCD in LSD ITotal cash required for IDx IDA IDA Description months Eligible Eligible Eligible ending % Cash Cash December 31, 2016 Goods I Computer Equipment 33102,49 100% 33.102.49 12,314.00 2 Scanner 13.44100 100% 13.441.00 5.000.00 Consultant Services 1 MIS Consultant to develop Sy stem 20,968.05 100% 20968,05 7,800.03 2 Consultant to develop pilot PMT 32,026.11 1 00% 31.02611 11.913.59 3 Consultant to develop [1C Campaign 0.00 100% 0.00 0.00 4 Process Evaluation Consultant 4,799.78 100% 4.799.78 1.785.50 5 MIS Officer 31,500.00 100% 31.500.00 11.71 !8 6 Financial Management 78,000,00 100% 78,000.00 29.015 .70 7 Procurement Officer 0.00 100% 0.00 0.00 Consultant to prepare contingency 8 plan for crisis response 2.700 03 100% 2.700 03 1.004.40 Consultancv to design referral 9 System 10,120.54 100% 10,120.54 3,764.80 10 Dcvclopment of Operations Manual 6,636.09 100% 6,636.09 2.468600 )evelopment of Social Work II Proramme 6,636.09 100% 6,636.09 2.468.60 12 Social Workers 11,200.92 100% 11,200.92 4.166.70 13 Mapping 13.441 .00 100% 13,441 00 5.000. 00 14 Investigative & Assessment tools 5,645 22 100% 5,645.22 2.100,00 15 M&E 5,376.40 100%N 5376.40 2.000.00 Training 20,000.00 100% 20,000.00 7,439.92 Operating Costs 10,000.00 o00.n 10.)00.00 3,719,96 TOTAL 305,593.72 305,593.72 113,679.68 Page 1 Government of Grenada Safety Net Advancement Project Credit 4993-GD Notes to the Financial Statements (For The Year ended 31 December 2015) NOTE 1: OBJECTIVE AND NATU RI ' THE PROJECT On May 27 2011. the (Tovernment of Grenada cntered into a Credit Agreement with the International Development Association (IDA). The objectives of the proJect are as follows: L To strenthen the basic architecture of the consolidated Conditional Cash Transfer (CCT) Program and the capacity of the Ministry of Social Development to implement it. I. To improve coverage of impoverished households receiving cash transfers. Ill To improve education outcomes of poor children and health monitoring of vulnerable households. The Project is organized into two major components: 1. Improving Conditional Cash Transfers This component wxill finance cash transfers to beneficiaries. Disbursenients wvill be made against meeting performance milestones aimed at the radual adoption of an overhauled business model in results areas including institutions. 2. Improving Implementation Capacity of MOSD This component will provide technical assistance to the Ministry of Social Development (MOSD) for improving its management, coordination, supervision, monitoring, and evaluation of the newl consolidated CCT prograr. NOTE 2: PROJECT FINANCING The total cost of the Project is estimated at USS23.200,000 with the financiers as tbllows: * The Governmcnt of Grenada - $ 18,200.000 (78%) * IDA - S 5.000,000 (22%) The project funds must be utilized in accordance with the terms of the respective Credit Agreement. Page 12 NOT I3: A\N \I () (0\ IN( P()I( l 1. All transactions are recorded. and the financial stalements prepared, using the cash basis of accountilg. 2. The financial accounts are maintained and the linancial statements are prepared iii hasiern Caribbean Dolars, Where required within this report. translation into United States Dollars is elected using the exchange rate of iUSS1.00 to K 2C$¯.6882, 3. Fixed \ssets proeured w ith project resources are recorded at their acquisition cost at the date of purehase. No depreciation is recorded for project assets. 4. The Financial Statements have been prepared on the basis of historical cost convention. No account is taken of inflation. NOl1 4 PROJECT ACCOUN T The ProjcCI accoumt includes funds transferred from the Designated \ecouni. THe account ftmetions in this manner to Casilty facilitate payiments and to inimiLe exorhitn bank charges. The accounts are all reconciled monthly and accurate records are kept to properly account for the ftmds expended from both tinanciers. The cash balance at 31 December 2015, aimounted to ECS 9.780.51. This anount represenis funds from the Designated Account for IDA eligible expenditures. NOLL 5 - CONDITIONAL CASH TRANSFiR REIMBlURSiLLhN _S Component 1 Improving Conditional Cash Transfers (US $ 4.5 M) is designed to reimburse the Government of Grenada (GoG) for expenditure incurred under this component. These reimbursements are made into GoG Consolidated Revenue Fund. During the year ended 31 December 2015. XCD 1,344,100.00 (USD 500.000.00M was reimbursed to the GloG. NOTIE 6 PROJE(T I LOSU1Rh The project was scheduled to be closed on 31 December 2015. Howexver, the Government of Grenada made a request for extension as eli as the restructuring of the project and the request was approved by the World Bank. The new project closing date is 31 Dccember 2017. P-a g e 113 NO iE 7 DISBUI RSIINTII INKLD IN DI(\UCTORS The l)isbursemnent Linked indicators (1)1Is) were reviewed and forimed a maJor part of the restructuring paper fr the project. The seope and the costing of the DLIs under Component I were revised to better niatch the implementation and institutional capacity within the MOSDH. Also, Ilie D1 Js Xould no longer be dated. The approved restructuring paper provides documentation with regards to Ilie DL Is. NOLL 8 NON- CURRENT ASSVITS Computer equipment was purchased for the SEE) unit which totalled $33.100.00 The Safety Nets Advancement Project is being implemented by the Ministry of Social Development. Non - Current assets. procured with project funds. are in use by the Support for Education, Empowerment and Education (SEED) Unit but belong to this Ministry and are restrieted to project purposes until project completion. The PCL[ maintains records to control these assets. SIGNIFICANT BIDS PROCESSED AND AWARDED FOR THE YEAR UNDER REVIEW Consultant Services: 1 . Proxy Means Test Consultant (2> 3 lrocurement Method: SSS Date of 'Contract No-Objection: 28-Jan-20 15 Approved Contract Sum: US S 14.745.00 o (onsultant: Beatriz Yadira Diaz Cuervo Nationality: ('olombian Amount Paid for the period: US S 5,625.00 Financing: 1 -00 IDA 2. Proxy Means Test Consultant (3) Procurement Method: SSS Date of Contract No-Objection: 27-Aug-2015 Approved Contract Sum: US $ 18.930.00 (Constultant: Beatriz Yadira Diaz Cuervo Nationality: Colombian Amount Paid for the period: US S 7,016,41 Finaneing: 100% IDA P a ge 14 Goods: i. Server o Procurenent Method: Shopping Date of Contract No-Objection: N/A Approved Contraci Sum: X(D 5 11.300.00 Supplier: I lankev"s Computer Store Ltd. Nationality: Grenadian Amount Paid for the period: XC1) s 11.300.00 Financing: - 100% IDA 2. Computers a Procurement Method: Shopping Date of Contract No-ObJection: N/A o Approved Contract Sum: XCD S 21.800.00 Consultant: Kool System o Nationality: Grenadian o Amount Paid for the period: XC) S 21 ,800.00 o Financing: 100% 1 DA P a g e 15 Rl . . AL DI DEPARTMEN ber~~~~~1 Øn m raS.GERGE'S lerl IdGRN DA, W. DIRECTOR OF AUDITREPORT Project Co-ordinator Proj ect Co-ordination Unit Ministry of Finance and Enerv GCNA Bilding ST. GEORGE'S REPORT ON THE STATEMENT OF THE SEGREGATED ACCOUNT Audit of the Resources Managed for the period from 1 January 2015 to 31 December 2015, by the Project Co-ordination Unit in the Ministry of Finance and Energy under the Credit No. 4993-GD, Safetv Net Advancement Project. I have audited the accompanying Segregated \ccount Bank Reconciliation Statenient for the Safety Net Advancement Project for the year then ended 31 December 2015. My respons1hility is to express an opinion based on uy audit. Scope I condueted the audit in accordance with International Standards of Supreme Audit Institulions (ISSAs) and World Bank guldeines Ihose standards and \\orld Bank gidelines requIre that I plan and perfrn the audit to obnaji reasonable assurance that the Segregated Account is frce el material misstatement. I believ c that the audit provides a reasonable basis for my opinion. Opinion In my opinion ihe Segregated Account used for managing the funds provided by the World Bank presents fairly tie av ailability of finds for tihe vear ten ended 31 December 2015, as well as the transactions made during ithe same period. in accordance with th provisions for th use of the funds established in tle corresponding agreemenis with the Bank, Philbert Charles Director of Audit (Ag.) Audit Department GRENADA 15 April 2016 Page 116 Grenada Safety Nets Advancement Project Credit No. 4993-GD Segregated Account Reconciliation Expenditures paid from SA for the period 1 January - 31 December, 2015 (in United States Dollars) SEGREGATED ACCOUNT BANK RECONCILIATION 1. Cumulati\ve Adv ances by the Bank 331.381. 81 2. Total Fxpenditure Documenied to date 209 182.08 3. Outstandinig Amount Advanced to be accounted (line 1 minus line 2) 122,199.73 4. Closing Balance: (As per Cash Book) 11,924.37 Designated Accounit 8.286.06 Project Account 3.638,31 5. Expenditure paid from the DA NOT YET elaimed 112,612.51 6. Expenditure paid from the DA claimed but not yet Replenished 0.00 7. Adjustments (Reconciling items to reconcile to Outstanding Amount advanced in line 3 above) : (2,337.16) a) Interest (2,337.16) 8. OutstandingAmount Advanced to be accounted (line 4 plus lines 5, 6 and 7) 122,199.72 PROJECTEI) CASH REQL IREMVIENTS FOR NEXT PERIO) 9. Total Forecasled l xpenditures for the Next Period iT Telre Months) 113,679.68 10. Less: Cash Available/Direct Paynents 11.924.37 11. Cash Requirement for the Next Period 101,755.31 Exchange Rate: 1USD - XCD 2.6882 P ag e l 17 Rel f- tl 1) 11 1) I PIAIt R Nl ENI1 Citt lik 1 l iiEiiA N A 1,j c ýo (,47, 4-t-Y 40 DIRECTOR OF AUDIT REPORT Project 1o-ordinaior Projct C o-ordinati on 1Unit Ministry of Finance and Inergy GCNA Biilding ST. GEORGE'S REPORT ON THE CUMMULATIVE STATUS OF TIA DISBURSEMENT IN K)ED INDICATORS Audit of the Resources Managed for the period from 1 January 2015 to 31 December 2015, by tit Project (Co-ordination [lnit in the Ministry of Finance, and Energ under the Credit No. 4993-GI, Safets Net Ad- ancement Project I have reviewed the Accountat Generals Office for coipliance wi th terms of grcement for the Safetv Net Adncement Project for the financial year then ended. 31 Decnber 2015. My responsibility is to express an opinion on whether compliance with the )ishursemcnt 1Iinked Indicators (DLIs) were verified by the Accountant Generals Office and whether set milestones were achiev ed dtring the period and'ited. Management's Responsibility The Accountant General is responsible for the \erification of the Dls Aceording to the Project Appraisal Documenit (PAD). -1he Recipiein shall have iis Accountant General's Office cnduct. under the terms of reference acceptable to the Association annual audits for the purpose of veri fing compliance Nith the )isburseienti inked Indicators. The reports of each such audit shall be furnished to tle Association n1ot later than 30 September of cach vear during Ilie execution of ile Prolect Auditor's Responsibility I coidcieted the audit in accordance with International Standards of Supreme Auidit Instittlions (ISSAIs) and World Bank guidelines. Those standards and World Bank guidelines require that I plan and perform the audit to obtain reasonable assurance that the Accountant General verified Ilie I)isburseienit Linked Indicators and that set milestones are achieved. 1 believe that my audit provides a reasonable basis for my opinion. P a g e 18 Basis for Opinion The \ecounitant General examined the montily pay shecets and veported his findings to Project Co-ovrdination Uni during Ilie y ear ended 31 December 20 15. I have not seen any evidence that lie Accountant (Geiieral verified compliance with the Disbursement Link Indicator (DIls). A number of nijlestones which xwere dependent on the implementation of lie Proxy Means Test (PMIT) eve not aclileved as at 3 1 D1eCemIber 2015. In adldition1. wk ithout the establishmeit ol the Proxy Means Test and full operation othe Beneliciary Management Information System (BMIS). wLicb are the necessary framework for the project implementation. these milestones max not be acliieved. Opinion ln my opinion. the Accountant General did not xeritf conpliane with )ishrsement 1.1k Indicators (DLis) and set milestones were not achieved for the Safetv Net Advancement Project Credit No.4993-GD Kr the year then ended 31 Decembev 2015. Plilhert Charles Director of Audit (Ag.) Audit Departient GRENADA 15 ApriI 2016 P a g e 19 Safety Net Advancement Project Credit No: 4993-GD Statement of Cumulative Status of Disbursement Linked Indicators For the Period ending September 30, 2(11 Disbursement Linked Indicators Measurement Strategy Achievement Reimbursement Date Date DLI A.1 Recipient has taken steps to establish Consolidated CCT Program Through (a) Approval of special Warrant creating budget line (i)The effective budgetary merger through 14-Apr-11 dedicated to the CCT Program approval of the Special Warrant and Reallocation 23-Aug-11 (b) Approval of a Reallocation Warrant to transfer funds to Warrant the (CT Program from two existing social safety net (ii) the nstitutional merger (Staff from MOE 11 Nov-11 programs working on this Progiar reporting to MOMU (c) Estabilishment of the Cash Transfer Unit within MOSD (iii) The StaftinE ot YED Unit Expert Support: with structure, functions, and responsibilities as well as Institutinal reorganation and budgetary 11 Oct-11 resources acceptable to the Association framework Planned Disbursement for DLI A 1 5S250 000 20 Jan 12 Recommended Disbursement for DLI A1 US$25D00 DLI C 1 Unified management information system is {i One combined database of all three programs established and single payment cycle is used for henefiiaries ilth adequate information to pay at effecting Cash Transfer to Beneficiaries under the (11) All three benef ts have been paid since Oct-11 LCT Program Se ptembr at the RO with unique reconciliation Lxpert Support pii neni Auditor Planned Disbursement for DLI CL1 US$250,000 20-Jan-12 Recommended Disbursement for 1LI C.I US$250,000 Puaec 20 Safety Net Advancement Project (redit No: 4993-Å]) CumulatiKe Status of 1)ishursement Linked Indicators For the Period ending September 30, 2012 Disbursement Linked indicators Measurement Strategy Achievement Date Reimbursement Date DL A.2 800 individuals, who hitherto had never Verfication of: (i) appropriate budgetary allocation for SED Not yet achieved received Cash Transfers, receive Cash Transfers in FY2012 to cover poor households who coold not be served after their eligibility to beromIe Beneficiaries has befora; (ii) intake in the MIS against established baseline; (iii) been establishad through the proxy means test payment lists sent to DROs; and (iv) reconciliation of payments received (aggregate and differential in the actual beneficiaries paid). Expert Support: MIS and payment Planned Disbursement for DLI A.2 UsS500,000 Recommended Disbursement for DLI A,2 USS DLI 8.2 70 percent of Bieneficiaries are identified Verification of: Not Vet achieved as eligible to receive Cash Transfers through the (i) amendment of operational manual to reflect new proxy means test (Baseline=C in April, 1 2011) targeting merhanism; (i) issue of a techical note about the targeting formula; (iii evidence of the population of the MIS with over 8,000 beneficiaries; (v, se le io r f e su set based ot agreed oLITff (Pmenf of the scleted subset from MIS- Expert Support: PMT/targeting and MIS Planned Disborsement for DI B.2 US$250,000 Recornmended Disbursemnent for DLu B2 UsS- DtLI 02 -'7-' parent of Beneinanes hao received Verification: randomized verification or spot check of Not yat achieved orit ial info matin ahot the (CT Progra mr knowiedge of beneficaaries of incIludng e!ibility iteria, enrolment pr ocedures, (i) their having receIved information about the program (at orntIons to paments appaals and omplajts enrolment); pro edores, arnd eit fror the C(T (rog am (ii) Their kowiedge of the pro gram riuis Exper Support: (Baselne= in April 1 2011) field outreach and es s to informat on Planned Disbursement for DU 0,2 us$250 000 Rerommnended Disbursement for DLI D 2 US$ P are 21 For the Period ending September 30, 2013 Disbursement Linked Indicators Measurement Strategy Achievement Date Reimbursement Date DLI C.3 70 percent of Beneficiaries are paid based Venficaton of: Not yet achieved on verification of compliance with applicable (i)MIS information from MOE and MOH entered education and health conditions sPt forth in the (ii) payment penalized based on non compliance Operations Manual (Baseline=0 in April, 12011) (111) Information from MIS transmitted to DRO for payment- Export Support: co-responsibilities and MIS Planned Disbursement for DLI C.3 US$500,000 Recommended iLsbursement for DLI C3 US DLI D.3 (250) 70 percent of complaints and appeals Vriifr on of Not yet achieved in relation to the CCT Program are attended to and (i) randoized interviewswith beneficiaries; resolved pursuant to standards and proedures of II) review of cases adjudic ated and the CCT Program's appeals and grievan. (III) Organizational assessment of the process. Expert Support: mechanism (Baseline ) in April 1, 2011) field outreach and instruments to measure demand for good governance and access to appeals- Planned Disbursement for DLI D.3 US$250,000 Recommended Disbursement for DLI D 3 US$ For the Period ending September 30, 2014 Disbursement Linked Indicators Measurement Strategy Achievement Date Reimbursement Date DLI 1 4 (250) Evaluation report on the CCT Verification of; Not yet achieved Program, ffousing on the impact of the program (0 the reports fnr impact evaluation and or process and its processes, is published on the MOSD eva uation meet t ehnir<al standards; website iw) Workshops on the results he been held to sh are results and information to Cabinet has been tranmitted. Eport Support. Evaluator Planned Disbursement for DLI EA USS250,000 Recommended Disbursement for DLI EA US$- P a g 22 Rei a . DHD Kl Ri Nt e\At 111 1) VI) k1R TMV NT In replI i hi U SI. GÅLGE(JS ýett J],iJ,* l44 GRENADA MA. DIRECTOR OF AUDIT REPORT Projcet Co-ordinator Project Co-ordination Unit- Ministry ot inanec and Einerg GC\A Building ST. GUORC'S REPORT ON TIIE STATEMEN[ OF REQUEST FOR REPLENISHMENT Audit of the Resources Managed for the period from 1 January 2015 to 31 December 2015, by the Project ('o-ordination Unit in the Ministry of Finance, Planning, Econormy, Energy and Cooperatives under the Credit No. 4993-G), Safety Net Advancement Project I have audited the Interim Financial Reports (FRs) for the Safety Net \dvaneement Project (SNAP) for the audited period in accordance with WVorld Bank guidelines. Management's Responsibility Management is responsible for the preparation and ait presentation of Interim Financial Reports (FRs) in accordance xwith W\orld Bank guidelines. This responsibility includes the design, implementation and maintenanceolf internal centrols relean lo the preparation and presentation of the reports that are Irec firom material misstatement whether duc to faud or etror; selecting and applying appropriate accoutiniig policies and making accounting estimates that are reasonable in the cirecumstances. Auditor's Responsibility My tesponsibiity is to express an opinion as to whether the expenditures included in FRs are elicible for financing, supported hy appropriate doetimentati on and credit fuids were used for projeet purposes in acCordance with the credit agreement. I conducted the atudit in accordance with the International Standards of Suprerne Audit Institutions (ISSAI) issued by Ilie nternational rganization of Supreme Audit Institutions (INTOSAI) and (oxernment's policies. procedres and regulations. Those standards require that I comply- with ethical requirements and plan and perlorni the audit to obtain reasonable assurance xw helher the financial stalenents are free from material nisstaternent. P a g e 23 Ån audit involes performing procedures to obiin atudit evidenec about the amounts and diselosures in Ilie financial stateents. The procedures selected depend on the auditors' judgment. including the assessment of the risks of material misstatement of the financial statenents, whether duc to fraud or error. In ma king those risk assessnients, the auditor considers internal control rel]eam to the entitys preparation and fir presentation of the tinancial statements in order to design audit procedures that are appropriate in th1e CirCumstances bit not for tle purpose of expressing an opinion on the efIfectiveness of tlie entity's internal control. An audit also includes evaluatinu the appropriateness of accounting policies used and the reasonableness of accounting estimates made by nanagenent, as well as evaluating the overall presentation of the financiul statements. I believe that the audit evidence I have obiained is sufcient and appropiaic to provide a basis tor my audit opinion. Opinion In my, opinion. tie Interim Fi nancial Reporis presents lairly. in all material respects. eligible expenditure which is properly supported and used for the intended purpose in preparing the FRs of tle Safety Net Advancemiet Project for the year ended 3 1 Deceemher 2015 in accordance with the respective credit agreement and World Bank guidelines. Philbert Charles Director of Audit (Ag.) Audit )epartmnieni GREN AID 15 April 2016 Page 24 Jel No <ii441-- umber~~~ an aaS. GCEORG E'S euer show 89""(TR E NADA, WI. laxv N,: (4 4 3 DIRECTOR OF AUDIT REPORT Project Co-ordinaior - Project Co-ordination Unit Ministry of Finance and E,nergy GCNA Building ST. GEORGE'S REPORTON INTERNAL CONTROL Audit of the Resources Managed for the period from 1 January 2015 to 31 December 2015, by the Project Co-ordination 1Unit in the Ministry of Finance, Planning, Economy, Energy and Cooperatives under the Credit No. 4993-G), Safety Net Advancement Project. I have audited the financial statements of the Safet Net AvIancement ProJeet (SNAP) for the twelvc-month period ended 3 1 December 2015. My audit was in accordance \ith the International Standards of Suprene Audit Institutions (ISSAls) standards issued b\ the International Organization of Supreme Audit Institutions (INTOSAI). Those standardis require that wc comply Nklii ethleal requirements and plan and perf orm the audit to ohtai n reasonable assurance about Nwhelthe the Fi nanecial Statenients are free from material nilsstatmcient. In planning and performing this audit, 1 considered the PC Us internal control over financial reporting. by obtainni an understanding of the policies and procedures that govern internal controls, determininig khether these controls had been placed in operation and assessing control risk and performing tests of the PCt s controls in order to deterinie the auditing procedures for the purpose of expressing an opinion on the financial statements and not to provide an opinion on the Internal controls. AccordiN. 1 do not express an opinion on the effeetiveness of the Project Co-ordination nit (PC) internal controls o er linancial reporting. For the purpose of this report I hake classi1ed siiiiticant policies and procedures relative to the PCU 's internal control structure in the ,lo ing categories: (l) Current Year Findings breken dowNn into Interini Financial Reports. Fi nanci al Statement and Comipliance with Applicable LaNs, Regulatios. W\ orld Bank <Guidellies and Policy Directives and (2) Follow UIp, P a u c 25 hIle managemenlt of PC is resp nsible fir maintaining etfective interial control over Finaneial reportin g. We liinited our controlesting to those controls necessar\ to ahieve Ile llng control objeet iv\es ihat provide reasonable. but not absolute assurance. that: (1) transactions are properiy\ recorded. processed. and summanrized to permi the preparat of the fnancial statements in aceo rdance w i ti the Government's accountng policies and the World Bank (uide lines and (2) transaetions are executed in complianee with laws and regulations that could Lave a direct and material effec on th lnancial statements. A control delieiency exists w llhen e dsign o in a ncorntr does not al low management or employees. in the nornil course of performing their assigned tunctions. to prevent or deteet misstatements on a timely basis. A s deficienec is a control deleieney, or COibination nof Cntrol leieinelies tihat adversely aftfets tle PCU,-s ability to initiate. authorize, reeord. process, or report filnancial data reiiaby such that there is mre tiLan f remote likelihood that a misstatement of tLe PCI iinancial statements tliat is more than iinconsequentiaill not be prevented or deteeted by PC ~s internal coñtrol. A material xwakness is a signilleanit deticienex or combination f signitieant defieniiicies, that results in more tlin a remolte likelihLood tilat a material mi sstatement of t lienaniale statemenlts wiil not Le prevented or deeeted by tle PI s interal entrol ( consideration ni interal control was for the li ited purpose deseeribd in tLe second paruaphi tlius repor and w\ould not necessari i identit all dei'eneles in linterial control tiat gL be sixilitaill dieneiles or material weaknesses. I did not disco\ er anx wakness that would be material in relation lo Ile financiail statements. Philbert Charles Director of Audit (Ag.) Audit 1)epartient GRENADA 15 April 2016 1 a ge 26