PACIFIC ISLANDS REGIONAL OCEANSCAPE PROGRAM PROJECT - SOLOMON ISLANDS P1522938 P151777 MINISTRY OF FISHERIES & MARINE RESOURCES AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2018 Pacific Islands Regional Occanseape Program Project P1522938 P151777 Ministry of Fisheries & Marine Resources Financial Statements For the Year Ended 31st December 2018 Contents Page Report of the executing agency 1 Auditors Report 2-3 Statement of Financial Position 4 Statement of Cash Receipts & Payments 5 Statemetn of Comparative Budget and Actual Amounts 6 Statement of Changes in Net Asset/Equity 7 Statement of Cash Flow 8 Notes to the Financial Statements 9- 11 Appendix 1: Fixed Asset Register 12- 13 Pacific Island Regional Oceanscape Program Project - SOLOMON ISLANDS P1522938 P151777 STATEMENT OF CASH RECEIPTS AND PAYMENTS MINISTRY OF FISHERIES & MARINE RESOURCES Report of the Executing Agency Under the terms of the contract, I representing Ministry of Fisheries and Natural Resources, have the mandate from the World Bank and Ministry of Finance & Treasury (MOFT) as the Executing Agency, to supervise and manage the funds provided by the World Bank and the Global Environment Facility (GEF). The funds are to be utilised as per the objective of the program: to strengthen the shared management of selected Pacific Islands Oceanic and Coastal fisheries, and the critical habitats upon which they depend. This will provide the basis for sustainable and increased economic benefits to the country from this resource. I certify that the attached Cash receipts and payments which has been prepared under my supervision presents a true and fair view of MFMR - PROP for the year ended 31" December 2018. Dated at Honiara this day of 2019. -- - --- - - - . . . . Dr Christian Ramofafla Permanent Secretary Executing Agency Representat *\ Ministry of Fisheries& Marine 1 ASSOCIATES WHERE SE RVIC KATET -MAA Independent Auditor's Report To the Project Director of Pacific Islands Regional Oceanscape Programme We have audited the accompanying financial statements of Pacific Islands Regional Oceanscape Programme (PROP) comprising the Financial Position report as at 31st December 2018 and the Statement of Cash Receipts and Payments report and statement of cash flows for the year then ended and the related summary of significant accounting policies and other explanatory notes on pages 9 to 13 of the financial statements. The financial reports have been prepared in accordance with the Grant Agreements between the International Development Association and the Solomon Islands Government (IDA 0150) and between the International Bank of Reconstruction and Development and the Solomon Islands Government (GEF TF018607), dated 29 January, 2015 for funding period I" January 2018 to 31 " December 2018. Responsibility of the Project Director The Project Director is responsible for the preparation and fair presentation of the financial statements in accordance with the accounting policies in note I to the financial statements and in accordance with the Grant Agreements and IPSAS Cash Basis. This responsibility includes designing, implementing and maintaining internal controls relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error, selecting and applying appropriate accounting policies and making accounting estimates that are reasonable in the circumstances. Responsibility of the Auditor Our responsibility is to express an opinion on these financial statements based on our audit. We have conducted our audit in accordance with applicable Auditing Standards in Solomon Islands. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether these financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement due to fraud or error. In making those risk assessment, the auditor considers internal controls relevant to the entity's preparation and fair 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 the Project Director, as well as evaluating the overall presentation of the financial statements. We do not, in giving this opinion, accept or assume responsibility for Certified Practising Accountants any other purpose or to any other persons, to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing. We believe that the audit evidence we have obtained is sufficient and appropriate to provide the basis for our audit opinion. Opinion In our opinion: (a) The accompanying financial statements are in agreement with the books of account kept by the Pacific Islands Regional Oceanscape Programme and are properly drawn up: i. So as to give a true and fair view of the financial position of the PROP as at 31st December 2018 and of its cash receipts and payments and its cash flows for the year then ended; and Comply with: ii. Standard Conditions for Grants Made by the World Bank Out of Various Funds, dated 15"' February, 2012; iii. The Grant Agreements GEF TF: 018607 and IDA 0150 (grant) / IDA 55670 (credit), dated 29th January, 2015: iv. The Disbursement Letter dated the same as the Grant Agreements: v. The World Bank Guidelines for Projects, dated 1st May, 2006; vi. The World Bank Procurement Guidelines, dated January 2011; vii. The Project Operations Manual, as required under Schedule 2C of the Financing Agreement; and viii. In accordance with the provisions of the International Public Sector Accounting Standards (IPSAS), where applicable; and ix. In accordance with the accounting policies set out in Note 1 to these financial statements. We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit for the year ended 31st December 2018, and Proper books of accounts have been kept by the PROP as far as it appears from the examination of those books. BAORO & ASSOCIATES CERTIFIED PRACTISING ACCOUNTANT Baoro 1,axton Koraua CPA Principal Date Pacific Islands Regional Oceanscape Program Project P1522938 P151777 Ministry of Fisheries & Marine Resources Statement of Financial Position for the year ended 31st December 2018 Account Description Note 2018 2017 SBD SBD ASSET Current Assets Cash and Cash I quivalents 5 2.429.013 937.267 Imprests 6 260.253 - Total Cash and Cash Equivalents 2,689,266 937,267 Total Current Assets 2689.266 937.267 Total Asset 2,689,266 937,267 Current Liabilities Liabilities 7 39.978 - lotal Current labilities 39.978 - Net Assets 2,649,288 937,267 Equity Retained Earninings 937.267 4.501.559 Total SLrpLus(DetiCit) for the Period 1.712.022 (3.564.292) Total Surplus !(Deficit) for the Period 2,649,288 937,267 Total Equity 2,649.288 937,267 4 Name: Pacific Islands Regional Oceanscape Program Project ID: P1522938 Pl51777 IA: Ministry of Fisheries & Marine Resources Statement of Cash Receipts and Payments for the year ended 31st December 2018 Account Description Note 2018 2017 SBD SBD FINANCING Grant Proceeds from the World Bank S IDA Grant 1,408.797 2,774,230 IDA Loan GEF Grant 5,870,855 viscelious Income 26.806 - Total Grant Proceeds from the World Bank 7,306,458 2,774,230 Total Financing 7,306,458 2,774,230 Expenditure Components Component 1: Offshore Fisheries 9 3.115.354 4.636,592 Component 2: Inshore Fisheries 10 1,J37,917 768.879 Component 3: Project Management 11 941266 933,052 Total Components Expenditure 5,594,436 6,338,522 Total Expenditure 5,594,436 6,338,522 Net Cash Flows 1,712,022 (3,564,292) 5 м яд � '� п i гр � �с т а' �r � � с � LL � �г: ,г. �г, г- �r, ,r � � r�, Т ��; с � г г й �_ �r; �i rr-� г г- r- ,., � i н e-i - Яч Vr. й,-• г. .•, � � � х м � г7 г. 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Р.. ;l; 4 � , вi�ч ьJ . ^^ Pacific Islands Regional Occanscape Program Project P1522938 P151777 Ministry of Fisheries & Marine Resources Statement of Changes in Net Asset/Equity for the year ended 31st December 2018 Accumulated Account Description Surplus/Deficit SBD Equity Balance as at 31 st Dccemher 2017 937,267 Changes in Net Equity in 2018 TOLUI 'SUI-pIUsAI)ettCit) Cor 1110 Period 1.712.022 Ba lance as a( 31 st December 2018 2,649,288 7 Pacific Islands Regional Oceanscape Program Project P1522938 Pl-51777 Ministry of Fisheries & Marine Resources Statement of Cash Flow for the year ended 31st December 2018 2018 2017 S13l) S)B Cash Flow from Operating Activities Receipts Gant Proceeds from the WorLd Bank IDA Grant 1.408.797 2.774.230 IDA Credit GF 5.870.855 Misc Income 26.806 - Total Receipts 7,306,458 2,774,230 Payments Component 1: OiTshore Fisheries 3.115.354 4636.592 Component 2: Inshore Fisheries 1.537.817 768.879 Component 3: Project Management 941 L266 933,052 Total Payments 5,594,436 6,338,522 Cash Flow from Operating Activities 1,712,022 (3,564,292) Deduction -Pavahles 39,978 Add - Lnretired imprests 260,253 - Net Cash Flow from Operating Activities 1,491,747 3,564,292 ('ash and Cash EquiN alent at the Beginning ofthe Period 937,267 4,501,559 Cash and Cash Equivalent at End of Period 2,429,013 937,267 8 PACIFIC ISLANDS REGIONAL OCEANSCAPE PROGRAM PROJECT- SOLOMON ISLANDS P1522938 P151777 MINISTRY OF FISHERIES AND MARINE RESOUCES Notes to and forning part of te Statement of Cash Receipis and Paynents l General Informations Soloinon Islands Giovernment sas received ifinancing from the World Bank for the Solomon islands Paci fe Regional Oceanseape Program ( PROP) Project ID: P152938 & 1151777. The PROV projet developiment objective is to strengtihen the shared management of seleected Pacifi Islands Oceanic and Coastal tsheries and the critical habitats upon which they depend This %\ill provide the basis for sustainable and inereased economio benefits to tho country front this resources. Ilie Project was signed on the 29th January 2015 betwiecn the SJG and tIse World Bank with Project amnount of IDA USD 9.75m und G1F USD1 L369m, I become effective on the 29 April 2015 and the closing date is on 30th September 2020. The Giran recipent agenscy sihal! be the Ministry of finance aid 'l'reasury and the implementation angene shall be the Ministry of Fisheries and Marine Resources. 2 Significant Accounting Policies a Basis of Preparation lie Statement oif Cash Rcecipts and Payniets has been prepared in accordance with International Public Sector Accounting Standards: Financial hlie accounting policies have been applied consissently thsroughout the period. b Cash Basis of Accounting The cash basis of accounting recognise transactions only when cash is recei\ ed and paid by the implernentatiois agency excepI for payroll liabilities and unretired iniprests. w hich have been picked up in tlie Balance Shee föir better fnancial reporting, e Reporting (urrency The 1inancial statemients are presented in the Solonon Island Currenc. lie solomon Islands Doller ( SBD$) d Foreign currency transactions [ranssactions 1in foreign eurrencies are recorded at the exchange rate at the date of the transaction. 3 (omponeni Reporting The reporting fIroat is hased on the direet components of dhe project. and Lise nature of tie expenses are reported in notes 9 - Il 4 Budget The budget is developed on tie sane accountina basis (cash basis) same classilieations and for the sane period to the finsancial statements 9 Pacific Islands Regional Oceanscape Program Project P1522938 P151777 Ministry of Fisheries & Marine Resources Notes to the Financial Statements for tie vear ended 31 st December 2018 5 Cish Cash comprises ash ön hand and eash equi'alents,, Cash equi.alents comprisc halance at ANZ Bank 2018 2017 Sill) SBD Cash Halance as at AN Bank 2428.943 937267 Cash Balane as at On land 70 2,429.013 937,267 Cash Details Accotnt N,> 5424877, G11 Funds, ANZ Bank 392.993 662, 198 AcCO1t1n NU 5424899, IlDA Funds. ANZ Bank 2035,951 275-069 PenIy Cash Standing Imprest 70 - 2,429,013 937,267 2018 2017 SHD SBD 6 tnretired Imprest. D erick Tagaca1L0 1 lel Luda Paul JaY 14Q!98 Joh11n Maefasmaoma 9[ Assaneth Iluarafi 39-243 - Peter Kenilorea 31195 - W e sly G a ro fe 249226e 260253 7 Labifities NPF 7753 - PAY1 30112 Ba,je Rates 2- 39,978 8 Grant Proceeds,tnm World Bank Sill) SPI (Ol - Replenislunents & Project funds transter IA08797 - IDA - Replenishmnents & Projeel lunds transfer 5.870155 2774,230 Miseellaneaous leome 42017 imprest l \oer refund & interest inenil) 26r)06 - Total Receipts 7,306,454 2,774,23(1 10 Pacific Islands Regional Oceanscape Program Project P1522938 P151777 Ministry of Fisheries & Marine Resources Notes to the Financial Statements for the year ended 31st December 2018 2018 2017 SBD SBD PAYMENTS 9 Component 1: Offshore Fisheries Expanded Participation in International Tuna Meetings - 163 724 Operation Costs for Fisheries Surveilliace Patrols 188.999 %ionitorine & Communication System Centres - 100.045 Establishment of Fisheries Information Systems 74,980 184,874 Equipment for Fisheries Compliances Officers 499,435 148.344 Equipment for Fisheries Observer 187,961 874,825 Operation Costs for MCS - 401.307 Expansion ofFisherise Compliance Officers 2,259.908 1.939,018 Expansion of National Observers programm 9),070 115,610 Support for Sanitary Competent Authrouiy 3,180 Securing Economy Returns from Tuna fisherie - 251.074 Establshnent of Electronic monitoring systems - 20.920 Specialised Trainigs - 244,671 Total payments Comp 1 3,115,354 4,636,592 10 Component 2: Inshore fisheries Coastal Fisheries Policy Planing and Prioritisation - 1.500 Implementation of Selected Provincial Fisheries Ordinaance 487,466 308.111 Resottrce Management plans for Sendentary Hi ()h Value Resources 447.400 - Frame Survey of Fishers, Boats, Gear and Catches - 360.424 Development and Management of Selected High vahled Fisheries 602.950 - Institutional Capacity Buildng and Support - 98845 Total payments Comp 2 1,537,817 768,879 11 Compenent 3: Project Management Personal 663,236 596,633 Operating Costs for Project Management Unit 169.893 176.010 Equimpment for PMIU 28,250 156.120 Office for PMU Montoring & Evaluation 76.431 - Bank fees & charges - IDA 2,841 3,881 Bank fees & charges- GEF 615 408 Total payments Comp 3 941,266 933,052 TOTAL PAYMENTS9,,594,436 6338,522 11 �� '�.... � I 1 I � . .. , , � гг �� , � ' ' ',I'I'��� '� ' i1 .I`����, �, И ,I! 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