MINISTRY Of FIIN(E
ZAMBIA PILOT PROGRAMME FOR CLIMATE CHANGERESILIENCE - PROJECT PREPARATION GRANT
IDF TRIUST FUND No. TF011075
STATEMENT OF SOURCES AND UTILIZATION OF FUNDSFOR THE 14 MONTHS PERIOD ENDED 28" FEBRUARY 2015
Pub
lic D
iscl
osur
e A
utho
rized
Pub
lic D
iscl
osur
e A
utho
rized
Pub
lic D
iscl
osur
e A
utho
rized
Pub
lic D
iscl
osur
e A
utho
rized
Y1iIfR) OF FINANCE
ZAMBIA PILOT PROGRAMME FOR CLIMATE CHANGERESILIENCE - PROJECT PREPARATION GRANT
IDF TRUST FUND NO. TFOI 1075
STATEMENT OF SOURCES AND UTILIZATION OF FUNDS FORTHE 14 MONTHS PERIOD ENDED
28 FEBRUARY 2015
Table of Contents
Table of Contents .......... . 1
Statement of Programme Management's Responsibilities--e..e.sibi.i... --...... 2
Auditor's Report en the Financial Statements. .. ..... - - - ---3......- -.-...... 3
Statement ol Sources and Utilization of Funds fir the 14 Months Ended 28 February 2015 --........ 5
Utilization ofF unds by* Activitv Statement for the 14 Months Period Ended 281 February 2015....... 6
Notes to the Staten-et of Sources and Uses ofF unds for the 14 Months Period Ended 2 8 t" February
2 0 1 5 _ ................. 7.......... ................................... . .. .. - - - - - . 7
. B ack g ro u nd ..................................- ... . ......................................................... 7
2. Statem ent of C om pliance - - - - - . ... ......................................................................... 7
3 .S i n ti a t c o u t n g p lc es - - - - - --......- ..........................................................- -. ... 73. Significant accounting, plices.
4. Basis of financial statem ent preparalion ...i.. .....................i. ..................... - - 7
5 . E x pendit re - ................... ... 7.................. ............ . - . - .- ..- . 7
6 . O pen ing B alances.,- .................................- .. .... .. ... . ............................................ 7
6 . S o urces .. Lu...nd- -...... ...........................- .. -.-.- .- ... .-.-. -.s. -- 8
7. E x pend iture by C ategory ,................................- ... ......-..................................... 9
8 .1 C on su ltan cyun .................... 9.. - - .................. . ............. ..------- 9
8.2 G oods - O ffice Ec q ip mniet1 ........................... ....- - . - .................................. 10
8.3 Increniental & O perating C osts ............... ........................... ........... .... . ... 10
9. Cash and Cash equivalem (Closing Cash Balances)1..... - .. ... 11
10. Contingent liabilities -. -. . .. ... ................... -- .- -. 11
11. Foreign Currency Exchange Dierence .. .. 1................. ............. ........ ..... ......
i:
Statement of Prograninie Managenent's Responsibilities
Te Zambia Pilot Programnie for Cliiiate g Reilience (ZPPCR) nanagenient is responsible.on behallf of the Conirolliin ()flicer for \linistry of Vinance - Economie Management and Finance
( FLM 60}. the preparation of' the Statement of Sources and t tilization of ilunds which gises a truc
and fair iCeof the state of affairs of /PCR. In preparing the Statement of Sources and Ltilizatioin
of Funds, the Programme Management:
* selects sminable accounting policies and then applies diem consistently
m makes judgnents that are reasonable and prudent: andI Iollows eneraly Accepted Accounting Principles
Shie Statement of Sources and Ltilization of lunds is prepared on a cash basis of accounting ini
accordance w ith accounting principles generallv accepted by Governnient of the Republic of Zambia
(GR/) and Cooperating Partners, Ihis is a departure froni Ilie requirements of International
Accounting Standards ( IAS),
The Programme Managememni is respionsible för ensuring that the ZPPCR project keeps accounting
records, registers and other relevant docunimenits which diselose with reasonable accuracv at anv time
the änancial position and activities of the programme as required by the linancing Agreeient.
Management is responsilble for taking reasonable steps for Ilie prevention and detection of errors.
frand and other iregularities.
Thle Prograninic Management is also responsible tor the systems of internal controls designed to
provide reasonable. but not absolute assurance as to the reliability of the financial statements and to
adequately safeguard, verify and naintain accouitability for assets, and to prevent and detect nialerial
misstatenients. Thie systems are implernented and monitored by suitably trained personnel with
appropriate segregations of authority and duties. Nothing has come to Ilie attention of the programnie
mianagement to indicate that any material breakdown in the functioning of these controls. procedures
and systeIs has occurred during the year under review.
In tie opinion of the programime ianagement. the statement of sources and utilization of funds is
drawn up so as to present fairly the finanial activities för the 14 months period ended 280 February2015.
Si,gned on behlialf of eli prograninie ianageienit by:
Ronald Siiwinga, Ph.) David C. KalubaPermanent Secretarv 1i MI1 National Coordinator - PPCRMinistry l' Finance Ministry of Finance
I..... ........ 2 Date - v
2-
REPORT ON 1'1E AUDIT OF FINANCIAL STATEMENTS FOR THE 14 MONTHS
PERIOD ENDED28t' FEBRUARY 2015
Auditor's Report (n the Financial Statenents
1 have audited the accompanving financial statements of the Zambia Pilot Programme for Clinate
Resilience (%PPCR) ProJeCt Preparation Grant, Trust Fund Number TF01 1075 for the 14 montis
period ended 281 Feruary 2015. These inancial stateiment comprise the Statement of Sources and
Utilization of lunds tor the year then ended, and a summary ot si gniitcant accotinting policies and
other explanatory information.
Managenient's Responsibility for the Financial Statements
Managemeni Zambia Pilot Programme hr Climate Resilience is responsible for the preparation and
Cair presentation of these linancial statements in accordance wih legislation and International Public
Sector Accounting Standards (IPSAS), and flr such internal control as managenment determines is
necessary to enable the preparation of financial staterments that are free from material misstatement.
Wxhether duC to ftud or error.
Auditor's Responsibility
My responsibility is to express an opinion on these financial statemenis based on my audit. I
conducted ny audit in accordance with International Standards for Supreme Audit Institutions. These
standards require that I comply with ethical requiremeits and plan and pertorni the audit to obtain
reasonable assurance about wliether the fimancial statemients are free Iromn material misstatement.
An audit inVolves pertorming procedures to ohtain audit evidence about the amounts and diselosures
in Ilie Iinancial statements. The procedures seleeted depend on the audilor's jiudgment, ineluding Ilie
assessment of the risks of material misstalement of the financial statenents, w,hether due to frand or
error. In making those risk assessments, the atuditor considers iniernal control relevant to the entity's
preparation and f[ir presentation of the financial 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 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 overal1 presentation of tlie financial statements.
I beliexe that the audit ex idence 1 have obtained is sulicient and appropriate to prov ide a basis for my
audit opinion.
3
Opinion
In my opinion. the financial statements on pages 5 and 6 present tairly. in all material respects, the
iinancial perfoirmance of /ambia Pilot I'rogrammn1 li,r (limate Resilience (/PPCR) Project
Preparation Grun lfor 14 montis period ended 28 F ebruary 201 5
Dr. Anna 0, (iifingtla( (FCCA, FZICA)
AUDITOR - GENERAL Date..... ...........2015
4
닌
Zamhia pilot Proforam for Climate lkesilience Project - ProJect Preparation Grant
11 DF Trust Fu iffl No. TFOI 1075
4 Months Period Fäded 28"'
Utilization of Fun(1s hy Activity Statement for the l Februarv 2015
.......... .. . ......
14 NIonths Perio(1, Elffled Vear EndedActivitv Cumulative
28th Februarv 2015 31s1 December 2013....... . .. .... -------
ztiss ZMXV USS mw tiss. ..... - -- -------- . ....... ---- ----
Opel-ational allel I,Fo"l,allltlle Xlalmals 44 3.2 92. 52 97,583-93
13ýiselliie Stu(1y an(1 M & 12 495.91 3.61 3, 173,847. 10 511,051.76
. .. ...... .
Partlclpatorý Aci<iiý)iitioii Wvisov 5 1,056,64 280,81 1.52 65.836ý55
f-,)fflce VCIL11p111c111 34,6 11.40
i .,Ctllelltýll 2. 1 3 3.949.5 0 96,040.21 -8,22 1 l 6 11 -5.369. 55
Balotsc Calials SILICK, 659,899,9-1 4,22 3, 5 9.6 1 1 11.150-39 6 1 1,327.15 7 7 1.050,3
-- - ------- . .......
331,841.56 2, 193,786,00Roads StLai 3 - 841.56
Kaftic Sub-basiii Loan and G-ant 19.793.76 108.865.68 19.793.76
---- - -------- -- ---- -
11i-o cct 1,"11111c11 25,454ý55 140,000,03 25,454,5D
- - - --- -------- . ...... - - ----
Total Expeii(li(ui-e 1,489,834.72 9,534,942.21 384,094.19 21112,5 18.06 1,972,593.39
Notes to the Statement of Sources and Uses of Funds for the 14 Months Period Ended 2 8 h
'cbruary 2015
1. Background
In April 2012 the (Iovernmcnt of Ilie Republic of' /ambia and International Bank for
Reconstruction and Development (IBRD) signed a Projeci Preparation Grant Agreeieni -
TF011075 for the /ambia Strengthening Climate Resilience Phase 11 and the Strengthening
Climatc Resilience in Ilie Kafuc Sub-Basin Proiects under the Ministry of Finance.
Thle Project has two Bank Acconts iitaimed at Stanbic Bank Zambia 1 imited, Miulungulsii
Branch. denominated in U [nited States Dollar and Zambian Kwacha. Funds from the International
Developmem 1 und (IDI) are remitted by the World Bank into the US Dollar Account and
transterred into Ilie Kwacha Account for operations at Ilie rulng exciange ratC.
2. Statement of Compliance
The Iinancial statemenits have been prepared in accordance xwith International Public Sector
Accounting Standards. Tlie Statenent of Sources and Utilzation of Flunds is prepared on cash
basis of accounting in accordntice wviti acconting principles generally accepted by The
Goverinient of the Republie of Zambia and Cooperating Partners. This is a departure fironi Ilie
requirciieits of [AS because under the cireuistanes, Ilie cash basis accounting is considered
appropriate.
3. Significant accounting policies
Si2ni ficant accounling policies adopted in the preparation of these financial statenents and
applied in all material respeets, are set out below:
4. Basis of financial staternent preparation
Ihe Statement of Sources and Utilizatioti of Lunds \were prepared under historical cost
Coliven11ti.
5. Expenditure
ixpenditure as been captured using Ilie cash basis of accounting in accordance witll accounting
principles generally accepted by GRZ and Cooperating Partners.
6. Opening Balances
2014 2013USS ZMW [SS ZMW
Proeet IS Dollar \ecount 57.678.97 317.234.34 249,874.71 1.304.345.99
Pro jec /ambian Kwacha Account 1245. 92 6 852.54 69.452,88 362.544.04
Total 58,924.89 324,086.88 319,327.59 1 ,666,890.03
7
化
--- - ---------
7. Expenditure by Categorv
flic Programinc expenditure kvas paid 1'0r out oftlic Dollar and Kxkacha Accounts held at Stanbic
Bank /ambla Liniked M"'LlltlllgLiShi Branch in Lusaka.
Tlic actual expendiutre by activity is broken down as follows:
14 Months Period Ended Year -Ended281h Februan 2015 Mst December 2013 Cumulative
ActivltNss, m w U ss zmw U ss
Consultanev I A87.655, i 1 9.5290.992,71 24 .80ý.67 I .335,43 1.777.364.1 3
Goods 0 0 34,611.40
Incremental& Operating 2, 179.61 13,949.50 141.288.52 777.096.87 160,617.86
costs . ..... - -- - ---- ----- --------
Total 1,489,834.72 9,5534,942.21 384,094.19 2,112,518.06 1,972,593.39
8.1 Consultanev
lléty;illellt Nkas made to Ilie I'olloýNliik, consultancies during Ilie 14 Months Period ended 98' February
20 15:. .. ... --- - ------
14 Montlis Period Ended Year Ended28th February 2015 3 Ist December 2013 CumtilativeUSS ZIM XNI, tiss zmw
- --- - ----- - --- -----
01)eiýalioii,il midpi-o,>rýiiiiiiie Mankulls 8 o. 9 8.64 ,43,292,52
97.583.93
lkisclinc Siudv and Mý195.913.61 l 1.051.76
3, l 73 M7- 10- - -- --- ----- 1 1,1 ... ---- ------------------- -------
Aliptation iAdvisor 5 1,056.64 280.811,52 65-836.55
Barotse ýuh-Baslii CanalsStudv 659-899.94 4.2 2 3.3,5 9.6 1 1 l I J50.39 61 l ý327.15 771,050.33)
------- --. .... -- ---- ----K,,åfuc Sub-Basin RoýidsS111(K 33 1.84 1.56 2, l 23.786,00 331.841,56
1.19Total 1,487,6_ý55.1 ý1 9,520,992.71 24,2,805_67 1,335,43 1 777,304.13
9
8.2 Goods - Office Equipnient
14 Months Period Year EndedEnded 28th 31st December
February 2015 2013 CumulativeActivit. -s
1SS Zm1w S$ ZMW
2 Epson l.CI Projectors - - - 3.256.70
7 Air conditioners - - - 7.327.56
local Area Network (LAN) 13.165.22- Supply and Instiallatln
W\ebsite development - 4,322.23
Seagate 500MB S Lard 4DriVe
Sony 500MB U S1B I lard 19.16t)ive
PanaMIsonic PABX and - - - 6.137.39Accessories
Total - - - 34,611.40
8.3 increnental & Operating Costs
14 lonths Period Year EndedEnded 28th Cumilative
31st December 2013Februar_ 2015
uSS ZMW tSS ZMW USS
Incremental
Operating 2 1791] 13 949.50 96.040.21 528,221 .16 115.369.55Costs
KauC SUb-basinLouaii{rani t - 19.793.76 108,865.68 19,793.76Sign m
Barotse Sub-Basin Proect- - 25,454.55 140.000.03 25.454.551 aunch
Total 2,179.61 13,949.50 141,288.52 777,086.87 160,617.86
Ineremental and Operating Costs includes administrative costs such stationery and printing Costs.
motor vehicle mainlenance. utililty bills field travel expenses and other oflice running costs.
10
9. Cash and Cash equivalent (Closing Cash Balances)
The cash at Stanbic Bank /ambia Limited as at 28gi February 201 5. 31 ' l)ecember. 201 3 and 3 1 >
D)ecembher 2012 was translated to Kwacha and US dollar at an exchange rate of I US$ = K6.4.
Ki 5 and 1I US$= K5.220, respectively.
The cash and cash equivalents at 28"' lebruary 2015 were as follows:
14 MonthsPeriod Ended Year Ended28th February 31st December 2013
2015
USS ZM11 UIS ZMW
Proj et US Dollar Account 79, 317234.34
Project /ambian Kwacha6875Account 65.09 416.58 1.245,92 825
Total __73.018 467.71 58,924.89 324,086.88
10. Contingent liabilities
There were no contingtent liabilities as at 2811 February 201 5
11. Foreign Currency Exchange l)itferene
14 Mlonths Period Enided 1 car Ended28th February 20)15 31st December 2013
USS 7M1W ES vb 111
o tal Ql Balances andRecepts(Se Noes sI 42 58.4 9.0571888.67 527.264.45 2.81 0,542.76
Ilou1 FNpeIuhi c (ee
\ote 8y 1,48,81172 9.534.942.21 384,094.19 2.1121518.06
I ot I Cash [alaLnces andReceipts Iless 66,253.30 477.053.54 143.170.26 698,024.70l1 xpenod ilueActual Cling ( all0h477Balances (Se Note 9)7(84 ] 58.924.89 324086.88
Forcin t Uacne66,326.38 47_ 4 8_4,7 339781-Ixehanuc lDierence 412.4 8 43 33978
11
