FA : 20 1 OF 31(x7 Em ail: io@og.go.u T \I )1 0 2 ,5,i() 0 f(i.V - 0 1 13,; i i 7,1 IS/ON: T7 bo beanc ctive an d1( iicint Sup o A,ulit I siilution (SA/) in pr(omtI oting jI ie public accoInIItabili y ivilSS/ON: lTb Audi aod repor to Palio at and thoteby Imake an effecdive contition1i t I iproving public accounability and value for .oney Spent" IN ANY CORRESPONDENCE ON THIS SUBJECT PLEASE QUOTE NO: ..... .. 287/346/01 17th December 2018 The Rt. Hon. Speaker of Parliament Parliament of Uganda Kampala REPORT OF THE AUDITOR GENERAL ON THE FINANCIAL STATEMENTS OF WATER MNAGEMENT AND DEVELOPMENT PROJECT (WMDP) FOR THE FINANCIAL YEAR ENDED 30TH JUNE 2018 In accordance with Article 163, (4) of the Constitution of Uganda 1995 (as amended), I forward, herewith audited Financial Statements of Water Management and Development Project with my report and ointon thereon. John F.S. Muwanga AUDITOR GENERAL Copyto: The Permanent Secretary/Secretary to the Treasury Ministry of Finance, Planning and Economic Development The Permanent Secretary, Ministry of Education The Accountant General The MD, NWSC The Director Planning and Capital Development The IGG Hon Minister of Ethics and Integrity Meimber of [the international Organisation of Supreme Audit Institutions (I NTOSAI) MIe iber of the Africa Organisation of Sup(arne Audit institutions (AFIROSAI) THE REPUBLIC OF UGANDA REPORT OF THE AUDITOR GENERAL ON THE FINANCIAL STATEMENTS OF WATER MANAGEMENT AND DEVELOPMENT PROJECT IMPLEMENTED BY NATIONAL WATER AND SEWERAGE CORPORATION FOR THE YEAR ENDED 30TH JUNE 2018 OFFICE OF THE AUDITOR GENERAL UGANDA List of Acronyms IESBA International Ethics Standards Board for Accountants INTOSAI International Organization of Supreme Audit Institutions IPSAS International Public Sector Accounting Standards ISSAIs International Standards of Supreme Audit Institutions NWSC National Water and Sewerage Corporation UGX Uganda Shillings WMDP Water Management and Development Project iii Key Audit Matters Key audit matters are those matters that, in my professional judgment, were of most significance in my audit of the financial statements of the current period. I have determined that there are no key audit matters to communicate in my report. Other Information Management of NWSC is responsible for the other information. The other information comprises information included in the director's report, but does not include the financial statements and my auditor's report thereon. My opinion on the financial statements does not cover the other information and I do not express any form of assurance conclusion thereon. In connection with my audit of the financial statements, my responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or in my knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work I have performed, I conclude that there is a material misstatement of this other information, I am required to report that fact. I have nothing to report in this regard. Responsibilities of Management and those charged with Governance for the Financial Statements The NWSC management is responsible for the preparation and fair presentation of the financial statements in accordance with the IPSAS and the World Bank's Financial Management Sector Board's Guidelines, funding agreements and for such internal control as management determines is necessary to enable the preparation of special purpose prject financial statements that are free from material misstatement, whether due to fraud or error. Auditor General's Responsibilities for the audit of the Financial Statements My objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISSAIs will always detect a material misstatement, when it exists. Misstatements can arise from fraud or error and are 5 relationships and other matters that may reasonably be thought to bear on my independence, and where applicable, related safeguards. From the matters communicated with those charged with governance, I determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. I describe these matters in my auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, I determine that a matter should not be communicated in my report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. Other reporting Responsibilities As required by the IDA financial agreement and KfW Frankfurt grant agreement, I report to you, based on my audit, that: * I have obtained all the information and explanations which to the best of my knowledge and belief were necessary for the purpose of my audit; * In my opinion proper books of account have been kept by the Corporation, so far as appears from my examination of those books; and * The Special Purpose Project Financial Statements are in agreement with the books of account. John F.S. Muwanga AUDITOR GENERAL. 17th December 2018 7 National Water and Sewerage Corporation (NWSC) AUDITED SPECIAL PURPOSE PROJECT FINANCIAL STATEMENTS OF THE WATER MANAGEMENT AND DEVELOPMENT PROJECT (WMDP) FOR THE YEAR ENDED 30WJUNE 2016. Funded by IDA Credit No. 51270-UG, KfW and NWSC Certified Public Accountants, 31,Bukoto street, Kololo P.0 box 7657, Tel. 256 (0) 392 000 216 E-mail; cpa@cpa.ug National Water and Sewerage Corporation Water Management and Development Project Special purpose Project financial Statements for the Year Ended 30 June 2018 Table of Contents Page Abbreviations 2 1.0 Project Information 3 2.0 Members of the Project Management Team 4 3.0 Project Background 5 4.0 Audit Objectives and Scope 8 5.0 Statement of Management Responsibilities 10 6.0 Report of the Auditors 11 7.0 Balance Sheet 14 8.0 Statement of Receipts and Payments 15 9.0 Statement of Comparison of Budget Against Actual 16 10.0 Statement of Designated Account Activity 17 11.0 Significant Accounting Policies 18 12.0 Notes to the Special Purpose Project Financial Statements 19 1 1Page National Water and Sewerage Corporation Water Management and Development Project Special purpose Project financial Statements for the Year Ended 30 June 2018 Abbreviations DFID Department for International Development (UK) DLP Defects Liability Period GOU Government of the Republic of Uganda IAASB International Auditing and assurance Standards Board IDA International Development Association IESBA International Ethics Standards Board for Accountants IFAC International Federation of Accountants ISA/s International Standard(s) on Auditing KfW Kreditanstalt fur Weideraufbau (Germany) NWSC National Water and Sewerage Corporation PAPs Project Affected Persons PFSs Project Financial Statements RAP Resettlement Action Plan SDR Special Drawing Rights USD / US $ United States Dollars UGX Uganda Shillings WA withdrawal Application WMDP Water Management and Development Project 21 Page National Water and Sewerage Corporation Water Management and Development Project Special purpose Project financial Statements for the Year Ended 30 June 2018 1.0 Project Information Project Title: Water Management and Development Project (WMDP) Project No. P123204 Implementing Agency National Water and Sewerage corporation (NWSC) Beneficiaries Municipalities of Arua, Gulu, Mbale and Ishaka- Bushenyi Banker BankofUganda Financing IDA Loan 51270-UG Auditor (On behalf of the Auditor General) Sejjaaka, Kaawaase & Co., Certified Public Accountants, 31, Bukoto Street, Kololo. P.0 Box 7659, Kampala. 31 Page National Water and Sewerage Corporation Water Management and Development Project Special purpose Project financial Statements for the Year Ended 30th June 2018 2.0 Members of the WMDP Management Team 1. Paddy Twesigye Project Coordinator 2. Cyrus Aomu Project Manager 3. Fredrick Arinaitwe Principal Engineer 4. Ritah Nalumansi Senior Engineer 5. Grace Nayebare Senior Engineer 6. Kennedy Geria Engineer 7. Joseph Sebuliba Principal Sociologist 8. Victoria Komukyeya Senior Sociologist 9. Maria Nambilo Senior Sociologist 10. Atukunda Agrace Project Accountant 11. Sarah Rukundo Project Accountant 12. Juliet Nakate Accounts Officer 13. Caesar Ankunda Accounts Officer 14. Joel Ayiko RAP Assistant - Arua 15. Moses Etikibo Rap Assistant - Arua 16. Becky Anne Obiga Grievance Officer - Arua 17. Obed David Onen Rap Assistant - Gulu 18. Ronald Kirama RAP assistant - Gulu 19. Keith Owomugisha Sociologist 20. Innocent Twesigye Environmental Engineer 41 Page National Water and Sewerage Corporation Water Management and Development Project Special purpose Project financial Statements for the Year Ended 30th June 2018 3.0 Background 3.1 WMDP Objectives and Project Components In May 2013, the Government of Uganda signed an agreement with the International Development Association (IDA) where IDA agreed to extend a credit of SDR 87,100,000 for the financing of activities of the Water Management and Development Project (WMDP). The project is intended to improve integrated water resources planning, management and development and for improving access to water and sanitation services in priority urban areas. The project also aims at higher levels of sustaining natural resources, improving service delivery and increasing economic productivity. WMDP consists of three components, namely, a) Investment in Integrated Water Resources and Management, b) Infrastructure Investments in Urban Water Supply and Sanitation / Sewerage and Catchment / Source Protection and c) Strengthening Institutions for Effective Project Implementation. 3.2 NWSC Scope and Funding The scope of WMDP activities for NWSC as an implementing entity is the Infrastructure Investments in Urban Water Supply and Sanitation and Catchment / Source Protection. Under the component, NWSC is responsible for improving water and sanitation coverage in the selected urban areas of Gulu, Arua, Mbale and Bushenyi-Sheema, and thus living conditions in those urban areas. It involves improving and expanding the existing water supply infrastructure, sanitation / sewerage services and the protection and management of water sources. It component involves construction and rehabilitation of priority water supply infrastructure. 3.2.1 IDA Funding The financing agreement between GOU and IDA required GOU to enter into a subsidiary agreement with NWSC for the implementation of activities for the component for which NWSC is responsible. The subsidiary agreement was signed in June 2013. Funding in the subsidiary agreement is comprised of a repayable loan of SDR 8,775,000 and a refundable grant of SDR 26,325,000, being SDR 35,100,000 in total. The original total allocation for NWSC component was US $ 55.1 million. This was later adjusted to US $ 54.5 million due to the SDR exchange rate to the US $ dropping towards the end of contract negotiations. Budget allocations in US $ to the project towns under NWSC were as follows; 51 Page National Water and Sewerage Corporation Water Management and Development Project Special purpose Project financial Statements for the Year Ended 30th June 2018 a) Arua 23.81 m b) Bushenyi-Ishaka 10.04m c) Gulu 15.95m d) Mbale 0.58m e) Project Preparation 0.50m 3.2.2 DFID Funding In May 2012, NWSC received a grant of US $ 227,000 from the United Kingdom Department for International Development (DFID) but disbursed through IDA. The grant was intended for Financial Modeling & Minimum Cost Planning. The objectives of financial modeling and minimum cost investment planning work were as follows; * To build a financial model for NWSC that allows determination of its cash flow position over the years to come and, through that, determine the ability of NWSC to repay part of the World Bank loan to the project. * To develop a methodology that supports NWSC towards infrastructure investment planning that results in sustainable infrastructure investment at minimum cost. The financial modeling & minimum cost investment planning report was issued in November 2013. 3.2.3 KfW Funding In December 2015, GOU, KfW Frankfurt, NWSC and Gulu Municipality signed an agreement where KfW extended a grant of E23 million to GOU. The amount was allocated as follows; * Water and Sanitation Supply (component A) (19.5 million * Waste Disposal, Surface Drainage, and structure Plan (Component B) E3.5 million. Component A undertaken by NWSC as the Project Executing Agency, is the component relevant to WMDP. In November 2016, GOU signed a subsidiary agreement with NWSC for the purpose of channeling E 19.5 million, the portion of the grant earmarked for implementation of Component A. The arrangement in the main agreement was for KfW to disburse the financial contribution in accordance with the progress of the project and upon request of NWSC. During the year to 30th June 2018, the equivalent of US $ 2,676,663 was disbursed by KfW to settle invoices for the contractor and the supervising engineer for Gulu Water Supply and Sanitation Project. 61 Page National Water and Sewerage Corporation Water Management and Development Project Special purpose Project financial Statements for the Year Ended 30 June 2018 3.2.4 Settlement of Project Affected Persons (PAPs) As the project implementing Entity, NWSC under the Project Agreement it entered into with IDA, is responsible for the harmonious settlement of PAPs, to ensure the smooth implementation of the project. During the year to 30th June 2018 the equivalent of US $ 153,271.21 (and US $ 1,043,159.34 cumulative to 30th June 2018) payments to PAPs was made out of NWSC business revenue. 3.3 Physical Progress of the WMDP 3.3.1 Bushenyi-Sheema Water Supply and Sanitation Project The newly constructed system is under defects liability period. However, system testing had been completed and the system s functional. With the WMDP, clean water supply has been extended to Bushenyi District, Sheema District, parts of Mitooma District and Kitagata Town Council. The area monthly revenue has risen from average UGX 250m to 450m per month. Most of the defects have now been cleared and the project is due for commissioning anytime soon. 3.3.2 Arua Water Supply and Sanitation Project System testing has been carried out, with both the new water and sanitation systems operational. However, the new systems are still under defects liability period. The DLP will last till April 2019. 3.3.3 Gulu Water Supply and Sanitation Project Currently level of completion attained for Gulu is about 50%. There is an intensity of construction activities and most of the project scope is ongoing. It is expected that works will be complete by April 2019. 3.3.4 Mbale Water Supply and Sanitation Project Mbale was originally fronted as one of the towns in the current WMDP. Citing inadequate funding, a new project is being mooted to fund water supply and sanitation works for Mbale. Procurement for the feasibility study and project design and for construction supervision was done and contracts awarded. 71 Page National Water and Sewerage Corporation Water Management and Development Project Special purpose Project financial Statements for the Year Ended 30 June 2018 4.0 Audit Objectives and Scope 4.1 Objective of the Audit The audit of the Project Financial Statements (PFSs) is intended to enable us express an independent opinion on the financial position of the project as at 30th June 2018 and the results of operations regarding funds received for the project and expenditures incurred in the year then ended. NWSC as the project implementing entity, is responsible for the project books of accounts and the preparation of PFSs that reflect financial transactions in respect of the project. NWSC is also responsible for setting and maintaining adequate internal controls and is responsible for the assets of the project. 4.2 AuditScope The audit of the PFSs was carried out in accordance with International Standards on Auditing set by the International Auditing and Assurance Standards Board (IAASB) of the international Federation of Accountants (IFAC), and in accordance with the terms of reference in the Auditors General's appointment letter to us, dated 12th June 2018 and referenced DCG.352/375/01/18. The audit included such tests and procedures we considered necessary and we paid special attention to the following; a) Whether IDA funding and KfW funding were provided and whether funds provided were used in accordance with the provisions of the relevant funding agreements, with due attention to economy and efficiency, and whether disbursements were only for purposes for which financing was provided. b) Whether goods, works and services financed were procured in accordance with the relevant financing agreements and in accordance with World Bank Procurement Guidelines. c) Whether the Designated account was properly maintained and in accordance with the provisions of the IDA funding agreement, and whether funds disbursed out of the Designated Account were for purposes intended in the IDA financing agreement. d) Whether national laws and regulations were complied with and whether financial and operational regulations approved for the project (like the Project Implementation Manual) were followed. 81 Page National Water and Sewerage Corporation Water Management and Development Project Special purpose Project financial Statements for the Year Ended 30 June 2018 e) Whether financial performance of the project is satisfactory f) Whether all necessary supporting documentation, accounts and records were maintained in respect of all project activities, including expenditures reported using Statements of Expenditure (SOEs) g) Whether payment to PAPs was on the basis of approved RAPs / valuation reports and whether payments were made to bona fide claimants. h) Whether ineligible expenditures included in withdrawal applications are identified and reimbursed to the Designated Account. In complying with ISAs, we pay particular attention to the following; * Laws and Regulations We evaluated compliance with the provisions of laws and regulations that might impact significantly on the recoverable expenditure statement as required by ISA 250 (Consideration of Laws and Regulations in an Audit of Financial Statements). * Governance We communicated with those charged with governance regarding significant audit issues related with governance in accordance with ISA 260 (Communication with those Charged with Governance). * Fraud and Corruption ISA 240 (Auditors Responsibility Relating to Fraud and in the Audit of Financial Statements), we identified and evaluated risks related to fraud. We obtained sufficient evidence of analysis of the risks, and properly assessed the identified or suspected risks. * Risks We applied appropriate audit procedures in order to reduce audit risk to a reasonably low level, regarding anomalies / risks identified during our evaluation. This is in accordance with ISA 330 (The Auditor's Responses to Assessed Risk). 9 Page National Water and Sewerage Corporation Water Management and Development Project Special purpose Project financial Statements for the Year Ended 30 June 2018 5.0 Statement of Project Management Responsibilities The management of NWSC is responsible for the preparation of the PFSs that present fairly in all material respects the state of affairs and the operating results of WMDP for each ending financial year in accordance with International Public Sector Accounting Standard 'Financial Reporting under the Cash Basis Accounting', and World Bank's Financial Management Sector Board's Guidelines; Annua financial Reporting and Auditing for World bank Financed Activities. NWSC is also required to ensure that the project maintains proper accounting records that disclose, with reasonable accuracy, the financial position of the project. NWSC is also responsible for safeguarding the assets of the project. Management accepts responsibility for the preparation and fair presentation of the project financial statements that are free from material misstatements whether due to fraud or error. Management also accepts responsibility for; a) Designing, implementing and maintaining such internal controls as they determine are necessary to enable the preparation of the project financial statements that are free from material misstatement whether due to fraud or error. b) Selecting and applying appropriate accounting policies and c) Making accounting estimates and judgements that are reasonable in the circumstances. Management of the NWSC are of the opinion that the project financial statements give a true and fair view of the financial position of the project as at 30th June 2018 and of the project's operating results for the for the period then ended and are in accordance with accounting policies set out on pages 18. In preparing these project financial statements, management has assessed the project's ability to continue as a going concern. Nothing has come to the attention of management to indicate that the project will not remain a going concern for at least the next twelve months from the date of this statement. Approved by NWSC management on and signed on its behalf by; Mnaging Director, NWSC dfi10r, Planning and Capital Development, NWSC 101 P a g e National Water and Sewerage Corporation Water Management and Development Project Special purpose Project financial Statements for the Year Ended 30th June 2018 7.0 NATIONAL WATER AND SEWERAGE CORPORATION WATER MANAGEMENT AND DEVELOPMENT PROJECT Special purpose project Financial statement for the year ended 30th June 2018 BALANCE SHEET AS AT 30TH JUNE 2018 Note 2018 2017 ASSETS AND CUMULATIVE EXPENDITURE USD USD Cash at Bank World Bank Designated Account 4 6,496,763.29 13,600,994.18 Cumulative project expenditure 37,346,605.21 22,969,379.92 TOTAL ASSETS AND CUMULATIVE EXPENDITURE 43,843,368.50 36,570,374.10 SOURCES OF FUNDS World Bank-IDA loan No.51270-UG 40,111,733.34 35,680,485.97 NWSC 1,045,023.78 889,888.13 KFW 9 2,686,611.38 - TOTAL FUNDS 43,843,368.50 36,570,374.10 These Special Purpose Financial Statements were approved by management of NWSC on JiC and signed on thie behalf by: Managing Director Director, Planning and Capital Development The accounting policies and notes on pages 18 to 25 form an integral part of these Special Purpose Project Financial Statements 14 | P a g e ��� Й О�� N N N N '" � с'�') N ^ .тр � N � р � � � v N 1� О�О м U О�О �О 1� n Q > Г- й�о ri v й�о .е чi .о О ; � = Г о � � �о о � � v v >; > _' ° ^ с� v � Г `� м �° �° s� � � � � `1 0 U м � О Q (�, .� � � � � с'') О о� ('о � СО 00 �� V � � ^ О � С С � � h � о000, М V� r�j а о°�. � О � ', � р ОС� UW On � 00�0 � О р � � О ..��. � N �О 00 И О а0 О� �О �О С �'...... 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F. � � И_ V LЛ � ш Й г � с о � п ш� ° ��•°-О � о U � t'�f ~ .� `� п р� L � Ф С W О � т й i3 Q О J � Ш _. f"'.- ..,. � N �++ � ш Ш р а � Q1 � С ы' yVj � в�. � О Q й � � СЛ V Q .. .. . °: а, а U о о � ��„ о � � р о } О� а � S' п � Z °° с г с� р-а ш г� п � у ш к Ф � � ' а� °, а ст э п�z � °. �°�z а U"' о nл о `ш •° ш .С � ,L о U ш ,� ш � сп а � ш Z � � � �..�.......... а а v й а° о Q 3 3 ° й°'с � 3 ° ¢� �й - 2� v�, Q О� Q� z� � �� ° U� � т° р и � National Water and Sewerage Corporation Water Management and Development Project Special purpose Project financial Statementsfor the Year Ended 30th June 2018 9.0 WATER MANAGEMENT AND DEVELOPMENT PROJECT IDA 51270-UG PROJECT NUMBER P123204 ENTITY - NATIONAL WATER AND SEWERAGE CORPORATION STATEMENT OF COMPARISON OF BUDGET AGAINST ACTUAL FOR THE YEAR ENDED 30TH JUNE 2018 Current Period FY 30 June 2018 Variance Budget Actual RECEIPTS USD USD USD WORLD BANK CREDIT IDA LOAN 9,591,570.00 4,431,247.37 5,160,322.63 NWSC Budget 514,833.64 155,135.65 359,697.99 KFW 5,511,810.00 2,686,611.38 2,825,198.62 TOTAL RECEIPTS 15,618,213.64 7,272,994.40 8,345,219.24 PAYMENTS WORLD BANK CREDIT Caf.l: Goods, Non consulting services, Consult ing services, training and Operational costs for Parts 1, 2(b), 3(a) &3(b) 9,591,570.00 11,535,478.26 1,943,908.26 NWSC payments( Land,compesaf ions & RAP) 514,833.64 155,135.65 359,697.99 KFW 5,511,810.00 2,686,611.38 2,825,198.62 TOTAL PAYMENTS 15,618,213.64 14,377,225.29 1,240,988.35 SURPLUS/DEFICIT FOR PERIOD (7,104,230,89) 7,104,230.89 The actual spending of US $ 7.1 million above actual receipts is explained bythe opening bolanace of US $ 13.6 million on the IDA Designated Account. TheseSpecial Purpose Financial Statements were approved byrnanagement of NWSC on and signed on t hie behalf by: anagiing Director Director, Plann!Td-n 0 i al Development 16 P a g e National Water and Sewerage Corporation Water Management and Development Project Special purpose Project financial Statements for the Year Ended 30th June 2018 10.0 WATER MANAGEMENT AND DEVELOPMENT PROJECT IDA 51270-UG PROJECT NUMBER P123204 ENTITY - NATIONAL WATER AND SEWERAGE CORPORATION STATEMENT OF DESIGNATED ACCOUNT ACTIVITY FOR THE YEAR ENDED JUNE 2018 ACCOUNT NUMBER: 003240088400001 BANK OF UGANDA Notes USD UGX Equivalent Opening Balance as at 1st July 2017 (as per Cash book Ledger Account) 13,600,994.18 48,907,814,974 Add Total Amount deposited by World Bank 6 4,431,247.37 16,011,107,340 TOTAL 18,032,241.55 64,918,922,314 Deduct Total amount withdrawn or paid out 8 11,534,819.28 42,188,849,759 Bank Charges 658.98 2,395,439 Foreign Exchange difference - 2,510,624,074 TOTAL 11,535,478.26 39,680,621,124.00 Closing Balance as at 30th June 2018 6,496,763.29 25,238,301,190 Th?se Special Purpose Financial Statements were approved by management of NWSC on and signed on thie behalf by: anaging Director Direct, anning and Capital Development The accounting policies and notes on pages 18 to 25 form an integral part of these Special Purpose Project Financial Statements 17 | P a g e National Water and Sewerage Corporation Water Management and Development Project Special purpose Project financial Statements for the Year Ended 30th June 2018 11.0 Significant Accounting Policies a) Basis of Preparation These Special Purpose Financial Statements have been prepared in accordance with International Public Sector accounting Standards (IPSAS) with particular emphasis on Cash Basis Financial Reporting under the Cash Basis of Accounting and World Bank's Financial Management Sector Board's Guidelines; Annual Financial Reporting and Auditing for World Bank Financed Activities. b) Cash Basis of Accounting Under cash basis of accounting transactions and events are recognized only when cash is received or paid by the entity. c) Foreign Currency Transactions Foreign currency translation for the receipts and payments statement items is done using the actual historic exchange rate at the conversion of Designated Account transactions into Uganda Shillings. Cash balances held in foreign currency are reported using the closing rate. Gains or losses on foreign currency transactions and balances are dealt with in the Statement of Designated Account Activities. d) Budget WMDP budget is developed on the same accounting basis (cash basis), same classification and for the same period as the financial statements. 18 | P a g e National Water and Sewerage Corporation Water Management and Development Project Special purpose Project financial Statements for the Year Ended 30th June 2018 12.0 Notes to the Special Purpose Project Financial Statements 1. Government Counterpart Funds The Financing Agreement between GOU and IDA did not require for GOU counterpart funding. IDA funds have been used for the settlement of contractors' invoices for certified works and for consultants' invoices for urban water projects of Arua, Gulu, Mbale and Busheenyi-Sheema. The payment of PAPs has been wholly financed by NWSC's generated revenue. 2. IDA Direct Payments There were no payments made directly by IDA to any specified suppliers of goods, works or services. 3. Non-Current Assets Assets acquired for the project are still with either the project engineers or the contractor. They will be passed on to the project implementing agency at the closure of the project. For purposes of tracking these assets, NWSC maintains a list of them as listed in Annexure I; 4. FUND BALANCE The fund balance is made as follows At30th June2018 At30th June2018 At 30th June 2017 USD UGX USD Designated bank balance 6,496,763.29 22,727,677,116 13,600,994.18 Exhange rate differences 2,510,624,074 6,496,763.29 25,238,301,190.00 13,600,994.18 19 P a g e National Water and Sewerage Corporation Water Management and Development Project Special purpose Project financial Statements for the Year Ended 30 June 2018 5 Statement of special account Reconciliation For the year ended 30 June 2018 Ac No.3240088400001 2018 2018 Bank: Bank of Uganda USD UGX 1 Total Advanced from inception 40,111,733.34 132,492,831,501 2 Less Amount recovered 3 Outstanding amount Advanced 40,111,733.34 132,492,831,501.00 Represented by: 4 Special account balance at end June 2018 6,496,763.29 25,238,301,190 5 Amounts claimed not yet credited June 2018 6 Amounts drawn not yet claimed 7 Amounts drawn from special account as at 30 June 2018 33,614,311.07 116,416,838,400 8 less interest earned and or plus bankcharges 658.98 13,312,377 9 Total special account Advance 40,111,733.34 141,668,451,967.79 Difference between line 3 and line 9 Nil - 9,175,620,467 Difference is Exchange loss local currency - 9,175,620,467 6 Statement of Expenditure -Withdraw Application Statement Forthe year Ended 30th June2018 By category of Expenditure Goods, Non consulting services, Consulting services, training and Operational costs TOTAL USD USD WA - NUMBER No.023 Sept 19,2017 3,031,247.37 3,031,247.37 No.025 Dec 01, 2017 1,400,000.00 1,400,000.00 4,431,247.37 4,431,247.37 20 1 P a g e National Water and Sewerage Corporation Water Management and Development Project Special purpose Project financial Statements for the Year Ended 301h June 2018 7 NWSC FUNDING USD Exchange Rate UGX Date RAP Costs Arua 18,290.05 3614.36 66,106,812 28.07.17 RAP Costs Arua 547.04 3619.51 1,980,000 7.08.17 RAP Costs Arua 544.70 3,604.8 1,963,500 50917 RAP Compesation Arua 19,219.21 3,655.3 70,251,034 31.10.17 RAPCostsArua 1,626.96 3,639.9 5,922,000 30.11.17 RAPCostsArua 913.57 3,636.5 3,322,250 5.12.17 RAP Costs Arua 490.56 3,632.6 1,782,000 31.01.18 RAPCostsArua 967.56 3,683.5 3,564,000 28.03.18 RAP Costs stale cheques - 2,347.47 3,688.0 -8,657,358 31.01.18 Advisory committee 1,171.82 3,703.6 4,340,000 24.04.18 RAPCostsBushenyi 1,338.45 3,614.0 4,837,176 29.07.17 RAP Costs Bushenyi 1,049.56 3,605.3 3,784,000 30.08.17 RAPCosts Bushenyi 5,161.13 3,608.1 18,621,760 28.09.17 RAP Costs Bushenyi 310.35 3,655.3 1,134,390 30.10.17 RAPCostsBushenyi 1,264.59 3,639.9 4,603,000 30.11.17 RAP Costs Bushenyi 483.19 3,637.1 1,757,416 28.12.17 RAP Costs Bushenyi 1,920.67 3,632.6 6,977,000 30.01.18 RAP Costs Bushenyi 2,676.33 3,687.0 9,867,636 31.03.18 RAPCostsGulu 813.42 3,614.4 2,940,000 28.07.17 RAP Costs Gulu 2,310.05 3,605.3 8,328,500 30.08.17 RAPCostsGulu 1,410.28 3,608.1 5,088,400 30.09.17 RAP Costs Gulu 1,263.08 3,639.9 4,597,500 30.11.17 RAPCostsGulu 643.65 3,637.1 2,341,000 28.12.17 RAP Costs Gulu 587.25 3,637.3 2,136,000 24.01.18 RAP Costs Gulu 683.97 3,650.7 2,496,994 28.02.18 RAP Costs Gulu 1,864.44 3,884.8 7,242,902 29.06.18 RAP Compesation Gulu 37,004.41 3,656.9 135,322,166 13.03.18 RAP Costs Gulu 693.72 3,709.2 2,573,167 26.04.18 RAPCostsGulu 992.76 3,768.0 3,740,716 31.05.18 RAP Compesation Gulu 24,663.11 3,883.1 95,768,821 28.06.18 RAP Compesation Gulu 21,725.51 3,637.1 79,017,402 27.12.17 RAP Compesation Gulu - 6,338.70 3,688.0 - 23,376,855 30.01.18 RAP Compesation Gulu 14,685.86 3,639.9 53,455,350 9.02.18 RAP Compesation Gulu 1,633.96 3,639.9 5,947,475 9.02.18 RAPCompesationGulu - 5,129.40 3,639.9 - 18,670,600 9.02.18 155,135.65 571,105,554.00 21 P a g e National Water and Sewerage Corporation Water Management and Development Project Special purpose Project financial Statements for the Year Ended 30th June 2018 8 PROJECTS EXPENDITURE - IDA FUNDS Particulars USD Exchange Rate UGX Date Goods, Non consulting services, Consulting services, training and Operational costs Invoice A PG Nicholas Odwyer 266,640.31 3,608.67 962,216,887 04.10.17 Invoice APG Nicholas Odwyer-WHT 47,290.52 3,623.46 171,355,308 19.12.17 Invoice.13517,13423 & 13309 Nicholas Odwyer 170,992.83 3,656.92 625,307,100 13.03.18 Invoice.13517,13423 & 13309 Nicholas Odwyer- 46,275.37 3,700.04 171,220,720 10.04.18 Invoice 616 Air Water Earth-WHT 1,536.46 3,633.29 5,582,405 12.10.17 Invoice 651 Air Water Earth 25,466.00 3,666.58 93.373,126 24.10.17 Invoice 616 Air Water Earth 24,071.14 3,606.32 86,808,234 17.07.17 Invoice651 Air Water Earth-WHT 1,526.94 3,655.71 5,582,050 07.02.18 Invoice 15 Fitchner Water& Transp 150,983.09 3,641.33 549,779,255 26.02.18 Invoice 14 Fitchner Water & Transp 155.952.52 3,620.75 564,665,087 21.12.17 Invoice 15 Fitchner Water& Transp-WHT 22,647.79 3,660.79 82,908,803 26.02.18 Invoice 14 Fitchner Water & Transp-WHT 24,450.72 3,655.71 89,384,742 07.02.18 Egis EAU HDV2305OV/SOl l EUR WHT 17,177.84 3,718.50 63,875,798 02.05.18 Egis EAU HDV2305OV/SO1 1 USD WHT 3,385.43 3,718.50 12,588,721 02.05.18 Egis EAU HDV2305OV/SOl 1 EUR 99,773.45 3,700.38 369,199,679 13.04.18 Egis EAU HDV2305OV/SO11 USD 19,214.09 3,700.38 71,099,434 13.04.18 Egis EAU HDV2305OV/SO8 & 09 EUR 8,782.45 3,700.38 32,498,402 13.04.18 Egis EAU FUR Jan 16-Aug 16 Addenda 106,196.47 3,606.32 382,978,454 17.07.17 Egis EAU HDV2305OV/SO5,SO6 &S07-EUR 212,414.86 3,606.32 766,035,958 17.07.17 Egis EAU HDV2305OV/SO5,SO6 &S07-USD 84,598.00 3,605.21 304,993,556 24.07.17 Egis EAU HDV2305OV/SO8 EUR 23,513.15 3,628.75 85,323,343 08.12.17 EgisEAU HDV2305OV/SO8USD 17,000.05 3,627.13 61,661,391 11.12.17 Egis EAU HDV2305OV/SI 0 EUR 63,134.65 3,620.75 228,594,784 21.12.17 Egis EAU HDV2305OV/S 10 USD 27,014.00 3,620.75 97,810,941 21.12.17 Egis EAU HDV2305OV/S10 USD-EGIS 2,943.25 3,640.33 10,714,401 17.01.18 Egis EAU USD Jan 16-Aug 16 Addenda 38,243,00 3,606.32 137,916,496 17.07.17 Egis EAU WHT HDV23050V/SO5,SO6,SO7 EUR 40,682.92 3,655.71 148,724,957 07.02.18 Egis EAU WHT HDV2305OV/SO8 & 09 USD 3,957.78 3,655.71 14,468,496 07.02.18 Egis EAU WHT HDV2305OV/S10 EUR 11,645.22 3,655.71 42,571,547 07.02.18 Egis EAU WHT HDV2305OV/S10 USD 4,763.88 3,655.71 17,415,364 07.02.18 Egis EAU WHT Jan to August 16 Invoices 20,339.36 3,655.71 74,354,802 07.02.18 Egis EAU WHT Invoices 08 & 09 EUR 7,247.49 3,655.71 26,494,722 07.02.18 Egis EAU WHT-Inv Jan 16toAug 16 6,748.76 3,633.29 24,520,202 12.10.17 Egis EAU WH-IT-Inv Sept 16 to Feb 17 14,929.00 3,660.58 54,648,799 24.10.17 IPC 11 EINassar & Dotf USD 1,362,068.00 3,666.58 4,994,131,287 24.10.17 IPC I1 EINassar & Dott UGX 233,538.65 3,623.46 846,217,957 19.12.17 IPC 12 EINassar & Dott UGX 51,935.13 3,623.46 188,184,866 19.12.17 IPC 12 EINassar & Dott USD 203,003.00 3,623.46 735,573,250 19.12.17 IPC 13 ENassar & Dott UGX 47,699.48 3,660.79 174,617,779 26.02.18 IPC 13 EINassar & Dott USD 264,219.00 3,660.79 967,250,273 26.02.18 IPC 14 EINassar & Dott UGX 75,292.09 3,894.92 293.256,667 27.06.18 IPC 14 EINassar & Dott USD 443,918.00 3,894.92 1,729,025,097 27.06.18 IPC 09 ElNassar & Dott 63,855.00 3,666.58 234,129,466 24.10.17 IPC 11 EINassar & Dott -WHT USD 81.667.49 3,655.71 298,552,660 07.02.18 IPC 12 EINassar & Dott-WHT UGX 3,299.19 3,655.71 12,060,882 07.02.18 IPC 12 EINassar & Dotf-WHT USD 18,161.43 3,655.71 66,392,921 07.02.18 I PC 07 Zonghao Overseas UGX 559,181.96 3,607.13 2,017,042,023 23.08.17 IPC 07 Zonghao Overseas USD 568,123.00 3,607.13 2,049,293,517 23.08.17 IPC 09 Zonghao Overseas UGX 230,486.92 3,623.46 835,160,135 19.12.17 IPC 09 Zonghao Overseas USID 235,213.00 3,623.46 852,284,897 19.12.17 IPC 10 Zonghao Overseas UGX 184,875.60 3,660.79 676,790,748 26.02.18 ]PC 06 Zonghao Overseas UGX 96,841.74 3,604.88 349,102,852 06.07.17 IPC 11 Zonghao Overseas USD 235,478.00 3,734.83 879,470,299 23.05.18 PC 11 Zonghao Overseas UGX 223,819.74 3,734.83 835928679.5 23.05.18 IPC 08 Zonghao Overseas UGX 50,260.64 3,666.58 184,284,657 24.10.17 IPC 08 Zonghao Overseas USD 51,906.00 3,666.58 190,317,501 24.10.17 I PC 10 Zonghao Overseas USD 190,623.00 3,660.79 697,830,772 26.02.18 IPC 03 Weihai Int.UGX 222,373.77 3,718.50 826,896,864 02.05.18 I PC 03 Weiha I nt.USD 245,175.00 3,718.50 911,683,238 02.05.18 Advance Weihai Int.UGX 1,655,299.04 3,605.21 5,967,700,652 24.07.17 Advance Weihail nt.USD 1,769,070.00 3,616.03 6,397,010,192 01.08.17 IPC 04 Weihai Int.UGX 183,693.62 3,894.92 715,471,954 27.06.18 1PC 04 Weihai I nt.USD 212,203.00 3,894.92 826,513,709 27.06.18 BANKCHARGES 658.98 3,635.07 2,395,439 30.06.18 TOTAL 11,535,478.26 42,191,245,198 22 P a g e National Water and Sewerage Corporation Water Management and Development Project Special purpose Project financial Statements for the Year Ended 30t June 2018 9 KFW DIRECT PAYMENTS USD Exchange Rate UGX Date Invoice 6A &B Fitchner Water & Transp 9,948.01 3,364.24 33,467,485 01.07.17 Invoice 01 Fitchner Water & Gopa 482,773.02 3,627.75 1,751,378,623 09.10.17 Invoice 02 Fitchner Water & Gopa 211,795.07 3,624.71 767,694,973 15.12.17 1PC 1 Weihai International 1,375,944.00 3,604.50 4,959,590,148 08.09.17 IPC 2 Weihai International 413,837.28 3,624.42 1,499,920,114 18.12.17 IPC 3 Weihai International 192,314.00 3,784.97 727,902,475 05.06.18 TOTAL 2,686,611.38 9,739,953,818 23 1 P a g e !·씽,- National Water and Sewerage Corporation Water Management and Development Project Special purpose Projectfinancial Statementsfor the Year Ended 30th June 2018 Annexure I (b) IT EQUIPMENT FOR WMDP PRJECT No. Item Make Serial Number WMDP Area Allocation I Laptop LENOVO G50-70 CB13299808 Arua 2 Laptop LENOVO G50-71 CB31548461 Arua 3 Desktop DELL OPHPLEX 9020 DG7ZVO2 Arua 4 Deskf op Dell optiplex 3020 97XTJ32 Arua 5 Laptop LENOVO LAPTOP CB 13300176 Arua 6 Printer HP OFFICEJET 7500 AA IN MY 441-4102 Arua ONE 7 Hard Disk External ITB C026001966 Arua 8 BACK UPS A PC 650 VA 53B]433X]5612 Arua 9 BACK UPS A PC 650 VA 53B]428X23455 Arua 10 Laptop DELL E5530 24881730301 Bushenyi 11 Laptop DELL E5530 4958125309 Bushenyi 12 Laptop DELL E5530 35498629693 Bushenyi 13 Desktop Dell opt iplex: 7020 2247605102 Bushenyi 14 Desktop Dell optiplex 7020 22490541438 Bushenyi 15 Printer HP OFFICEJET 7500 A LL IN MY54S51077 Bushenyi ONE 16 Printer Kyocera FS-6525MFP 1102MX3NL2 Bushenyi 17 ups BA CKU P 650 3B]437X29020 Bushenyi 18 ups BACKUP 650 3B]437X24003 Bushenyi 19 Photocopier I R 2520 CANON (21)FRL65429 Gulu 21 Laptop HP USH701 LOZ3 Gulu 22 Laptop HP Gulu 23 Laptop HP Gulu 25 Desktop DELL CN-07CXPR-72872-73D-DUB-A 00 Gulu 26 desktop DELL CN-07CXPR-72872-73D-DGPB-A 00 Gulu 27 colour printer H P Office jet 7000 CN3BA3MG7 Gulu 28 colour plotter H P Design jet CN72MO10 Gulu 29 Digit ising f able Calcom DIN AO FORMAT Gulu 30 Scanner, 1600 x 3200clpi QC5-163B-DB-DB01-01 Gulu 25 P a g e