TELEPHONE Au dii t oneral: +256-41 /336004 SeeZ Errmai nfo@oog '.giAMug THE RF PUALIC OF UGANDA V/ISON: To be an effective and efficiet Supreme Audit tins i tu!' /SA iomoting effective pubbi' Accountabitv. MISSION: To Audit and repor to Parliamen oansd theob mak iano elective onntibutio o imromving public accountabily and Value for Money~i sit IN ANY CORRESPONDENCE ON: THIS SUJBJECT PASE. Q.OE NO .... DCG. 352/375/01 11th December, 2017 The Rt. Hon. Speaker of Parliament Parliament of Uganda Kampala REPORT OF THE AUDITOR GENERAL ON THE FINANCIAL STATEMENTS OF WATER MANAGEMENT AND DEVELOPMENT PROJECT (WMDP) IMPLEMENTED BY NATIONAL WATER AND SEWERAGE CORPORATION (NWSC) -IDA FOR THE FINANCIAL YEAR ENDED 30TH JUNE, 2017 In accordance with Article 163, (4) of the Constitution of Uganda 1995 (as amended), I forward herewith audited Financial Statements of the above Project for the financial year ended 30th June, 2017 together wth my report and opinion thereon. John F. S. Muwanga AUDITOR GENERAL Copy to: The Inspector General of Government, Kampala "N The Hon. Minister of Ethics & Integrity "1 The Permanent Secretary/Secretary to the Treasury Ministry of Finance, Planning & Economic Development The Permanent Secretary/ Accounting Officer Ministry of Water & Environment The International Development Association - IDA The Managing Director, NWSC The Managing Partner, PKF-Uganda Membner of the nternational Organ sation of Supreme Audit inlstitutions NiTOSA!) Mem nber of the Africa Orgjaonsatuon of Supreme Audt instltutins (AFROSAP) ÿþOFFICE OF THE AUDITOR GENERAL 21 THE REPUBLIC OF UGANDA REPORT OF THE AUDITOR GENERAL ON THE FINANCIAL STATEMENTS OF THE WATER MANAGEMENT AND DEVELOPMENT PROJECT (PROJECT NO. P1232041 FINANCED BY THE INTERNATIONAL DEVELOPMENT ASSOCIATION (WORLD BANK) LOAN NO. 51270-UG IMPLEMENTED BY NATIONAL WATER AND SEWERAGE CORPORATION FOR THE YEAR ENDED 30&" JUNE 2017 OFFICE OF THE AUDITOR GENERAL UGANDA REPORT OF THE AUDITOR GENERAL ON THE FINANCIAL STATEMENTS OF THE WATER MANAGEMENT AND DEVELOPMENT PROJECT FINANCED BY THE INTERNATIONAL DEVELOPMENT ASSOCIATION (WORLD BANK) AND IMPLEMENTED BY NATIONAL WATER AND SEWERAGE CORPORATION FOR THE YEAR ENDED 30TH JUNE 2017 THE RT. HON. SPEAKER OF PARLIAMENT Opinion I have audited the Project financial statements of Water Management and Development Project (No. P123204), financed under the World Bank's International Development Association (loan No. $1270 - UG) and implemented by National Water and Sewerage Corporation (NWSC), which comprise the Balance Sheet as at 3Oth June 2017, Statement of Receipts and Payments, Statement of Budget against Actual, Statement of Designated Account Activity for the year then ended, and a summary of significant accounting policies and other explanatory notes, as set out on pages 15 to 30. In my opinion, the accompanying special purpose project financial statements present fairly in all material respects the financial position of Water Management and Development Project as at 30th June 2017, and of its financial performance for the year then ended in accordance with International Public Sector Accounting Standard (IPSAS), the World Bank's Financial Management Sector Board's Guidelines and the funding agreements. Basis of Opinion I conducted my audit in accordance with the International Standards on Auditing. My responsibilities under those standards are further described in the Auditor's Responsibilities for the audit of the Financial Statements section of my report. I am independent of the National Water and Sewerage Corporation entity and the Water Management and Development Project in accordance with the Constitution of the Republic of Uganda (1995) as amended, the National Audit Act, 2008, the International Ethics Standards Board for Accountants Code of Ethics for Professional Accountants (Parts A and B) (IESBA Code) and other independence requirements applicable to performing audits of Financial Statements in Uganda. I have fulfilled my other ethical responsibilities in accordance with the IESBA Code, and in accordance with other ethical requirements applicable to performing audits in Uganda. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion. Key Audit Matters Key audit matters are those matters that, in my professional judgment, are 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. Emphasis of Matter Without qualifying my opinion, I draw your attention to Note 1(a) to the special purpose project financial statements, which describes the basis of preparation; Other Matter I consider it necessary to communicate the following matters other than those presented or disclosed in the financial statements. Delays to pay Contractors A review of the Consultants' reports revealed that there were delays in contractors' payments for the VAT component of the invoices leading to Contractors using their own funds to comply with the VAT requirements while they wait for NWSC (Ministry of Finance) to refund. This affects the contractors' cash flows, which further results in delays of payments to workers and purchase of electro mechanical equipment and other materials. It can also jeopardize the efforts of the contractors to catch up with project delays hence resulting in further extensions of the projects. Management stated that the delays to pay VAT due to the contractors was caused by the under budgeting by GoU (our main customers) to provide water bills for Ministries. NWSC expected GoU to pay UGX.65 bn to cover accumulated bills up to 30/6/2017, but only UGX.22 bn was received. GoU has now released funds to clear 111 some arrears and increased budgets for water bills for fihancial year 2017/2018. The Corporation has started clearing the VAT arrears. As at 18h August 2017, USD 112,365 had been paid out of the amount which was outstanding on 30 June 2017. According to the VAT Amendment Act 2016, the Corporation will not be required to pay VAT on Aid funded projects with effect from July 2017. I recommended management to escalate the issue to Ministry of Finance, Planning and Economic Development and the Ministry of Water so that the matter is appropriately addressed. Management's Responsibilities for the Financial Statements Management is responsible for the preparation and fair presentation of the special purpose project financial statements in accordance with International Public Sector Accounting Standard; "Financial Reporting under the cash basis of Accounting"( the IPSAS) issued by the International Public Accounting Standards Board of the International Federation of Accountants, and the World Bank's Financial Management Sector Board's Guidelines: Annual Financial Reporting and Auditing for World Bank Financed Activities (the WB Guidelines) and for such internal control as management determines is necessary to enable the preparation of the special purpose project financial statements that are free from material misstatement, whether due to fraud or error. Auditors' Responsibilities for the audit of the Financial Statements My objectives as required by Article 163 of the Constitution of the Republic of Uganda, 1995 (as amended) and Sections 13 and 19 of the National Audit Act, 2008, 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 ISAs will always detect a material misstatement, when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users, taken on the basis of these financial statements. iv As part of an audit in accordance with ISAs, I exercise professional judgement and maintain professional scepticism throughout the audit. I also:- * Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. o Obtain an understanding of internal controls relevant to the audit 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 NWSC's internal controls. * Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. * Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the project's ability to continue as a going concern. If I conclude that a material uncertainty exists, then I am required to draw attention in my auditors' report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify my opinion. My conclusions are based on the audit evidence obtained up to the date of my auditors' report. However, future events or conditions may cause the project to cease to continue as a going concern. * Evaluate the overall presentation, structure and content of the project financial statements, including the disclosures, and whether the project financial statements represent the underlying transactions and events in a manner that achieves fair presentation. I communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit. V I also provide those charged with governance with a statement that I have complied with relevant ethical requirements regarding independence, and to communicate with them all 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 ppeqted to outweigh the public interest benefits of such communication. John F.S. Muwanga AUDITOR GENERAL 12th December 2017 vi PKF Accountants & business advisers 0#RECEIVED O3 1 AUG 2017 PROJECT NO.P123204- WATER MANAGEMENT AND DEVELOPEMNT PROJECT (WMDP) IMPLEMENTED BY NATIONAL WATER AND SEWERAGE CORPORATION (NWSC) FINANCED BY INTERNATIONAL DEVELOPMENT ASSOCIATION (WORLD BANK) LOAN NO.51270-UG AUDITED SPECIAL PURPOSE PROJECT FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 PKF Uganda Certified Public Accountants A member firm of PKF International NATIONAL WATER AND SEWERAGE CORPORATION WATER MANAGEMENT AND DEVELOPMENT PROJECT SPECIAL PURPOSE PROJECT FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 TABLE OF CONTENTS ACRONYMS AND ABBREVIATION. .. ........... . ............................2 PROJECT INFORMATION ........................................ ............ .3 MEMBERS OF PROJECT COORDINATING UNIT .................... ....................4 PROJECT BACKGROUND.... ............. ............ .................5 AUDIT OBJECTIVES AND SCOPE....... .......................... .............- 9 STATEMENT OF MANAGEMENT'S RESPONSIBILITIES .................. 11 REPORT OF INDEPENDENT AUDITOR ...... ............. ................ 12-14 BALANCE SHEET-........ ....... ........... ...........15 STATEMENT OF RECEIPTS AND PAYMENTS..... ... ............ ...... ............16 STATEMENT OF BUDGET AGAINST ACTUAL .......................... .........18 STATEMENT OF SPECIAL (DESIGNATED) ACCOUNT ACTIVITIES ......... ............19 NOTES TO THE FINANCIAL STATEMENTS ............ ........................ 20-30 ANNEX I: PROJECT WORK PLAN....... ...... ....... ..30-32 1 NATIONAL WATER AND SEWERAGE CORPORATION WATER MANAGEMENT AND DEVELOPMENT PROJECT SPECIAL PURPOSE PROJECT FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 ACRONYMS AND ABBREVIATIONS IDA International Development Association DWD Directorate of Water Development GoU Government of Uganda ESIA Environmental and Social Impact Assessment RAP Resettlement Action Plan IFAC International Federation of Accountants IPSAS International Public Sector Accounting Standards ISA International Standards on Auditing ISSAI International Standards of Supreme Audit Institutions MoWE Ministry of Water and Environment NWSC National Water and Sewerage Corporation PFSs Project Financial Statements PAR-- Program Appraisal Report PIM Project Implementation Manual MoFPED Ministry of Finance Planning and Economic Development SDR Special Drawing Rights USD United States Dollar UGX Uganda Shillings 2 NATIONAL WATER AND SEWERAGE CORPORATION WATER MANAGEMENT AND DEVELOPMENT PROJECT SPECIAL PURPOSE PROJECT FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 SUMMARY OF PROJECT INFORMATION PROJECT NUMBER & TITLE: P123204 - WATER MANAGEMENT AND DEVELOPMENT PROJECT (WOMP) IMPLEMENTING AGENCY: NATIONAL WATER AND SEWERAGE CORPORATION Plot 39, JINJA ROAD P.O. Box 7053, KAMPALA, UGANDA. Tel: 256-414-315000/232919 Fax: 256-414-2582991345531/346447/346532 BENEFICIARIES: MUNICIPALITIES OF ARUA, GULU, ISHAKA-BUSHENYI AND MBALE PRINCIPAL BANKER: BANK OF UGANDA FINANCING: IDA LOAN 51270-UG DELEGATED INDEPENDENT AUDITOR: PKF UGANDA Certified Public Accountants Plot 1B, Kira Road P.O. Box 24544, Kampala, Uganda 3 NATIONAL WATER AND SEWERAGE CORPORATION WATER MANAGEMENT AND DEVELOPMENT PROJECT SPECIAL PURPOSE PROJECT FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 MEMBERS OF THE PROJECT COORDINATING UNIT Members of the Water Management and Development Project (WMDP) team Name Position 1. Adolf Spitzer Senior Infrastructure Planner 2.Cyrr Aomnu PrKncipal Engineer 3. Fredrick Arinaitwe Senior Engineer 4 Ritah Nalumansi Senior Engineer 5. Grace Nayebare * Engineer [6. Keneddy Geria Engineer 7. Dorothy Achan 1 Principal Sociologist 8. _ Victoria Komukyey Sociologist 9- Maria Nambilo Senior SociolIgist 10. Atukunda Agrace Senior Accountant Sarah Rukundo Senior Accountant 12. Juliet Nakate Accountant 13. Violet Male Accountant 14, Joel Ayiko RAP Assistant - Arua 15. Moses_Etikibo RAP Assistant - Arua __ 16 Becky Anne Obiga Grievance Officer -Arua 1_7 Baftwabaabo Keneth jGrevanceOfficer-Bushe-_ 18, Akankwasa Bridget RAP Asststant-Bushenyi 19. Tumusiime Timothy RAP Assistant-Bushenyi 4 NATIONAL WATER AND SEWERAGE CORPORATION WATER MANAGEMENT AND DEVELOPMENT PROJECT SPECIAL PURPOSE PROJECT FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 1.0 BACKGROUND The Uganda Water Management and Development Project (WMDP) will support the Government's efforts to introduce Integrated Water Resources Management (IWRM) by creating an enabling analytical, infrastructural and institutional platform to improve water resource management, productivity and service delivery, and to reduce vulnerability to water shocks. The WMDP will scale up support for IWRM which has been implemented on a pilot scale in Uganda by the Ministry of Water and Environment (MWE). The project development objectives of the WMDP are to improve: * Integrated water resources planning, management and development; and - Access to and reliability of water and sanitation services in priority areas. The project aims at contributing to higher level goals of: * Sustaining natural resources; * Improving service delivery; and * Increasing economic productivity. The Project consists of two main components: * Integrated water resources planning, management, and development; and * Water supply and sanitation in urban centers including source protection. In addition, it includes a third supporting component focusing on project implementation, including management and coordination aspects. The project component under National Water and Sewerage Corporation (NWSC) is concerned with water supply and sanitation in urban centers including source protection. The component aims to improve water and sanitation coverage and, thus, living conditions in selected urban centers. It involves improving and expanding existing water supply infrastructure and sanitation/sewerage services as well as attendant catchment management / source protection activities in 12 settlement centers, under the mandates of both NWSC and the Directorate of Water Development (DWD). Service delivery to the poor is a core element, as well as other aspects of environmental sanitation, such as drainage. The project component to be implemented by NWSC involves construction and rehabilitation of priority water supply infrastructure and sanitation/sewerage services in the municipalities of Arua, Gulu, Bushenyi-Ishaka, and Mbale. Funding of the project is through a World Bank loan and the funding approval sequence was as follows: The loan was approved by the World Bank board on the 26th of June 2012. 5 NATIONAL WATER AND SEWERAGE CORPORATION WATER MANAGEMENT AND DEVELOPMENT PROJECT SPECIAL PURPOSE PROJECT FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 The World Bank and the Ministry of Finance, Planning and Economic Development (MoFPED) signed the Financing Agreement on May 22nd 2013. The legal opinion (and no objection) from the Attorney General, which is a requirement for loan disbursement, was signed on the 9th July 2013. World Bank is the development partner project funding is Special Drawing Rights (SDR) 87.07 million which, at the time of approval, translated into United States Dollar (USD) 135 million. Out of this, SDR 35.15 million, or USD 54.5 million were allocated towards funding of the NWSC component for the towns of Arua, Bushenyi-Ishaka, Gulu, Mbale. Project funds for all but one component are to be disbursed through the MWE. Funds for the component that is not to be disbursed by the MWE are disbursed directly by NWSC and, to this effect, a subsidiary agreement was signed between the MoFPED and the NWSC. The subsidiary agreement was signed on the 17th of June 2013. Actual revised budget allocations to the project towns under National Water and Sewerage Corporation were as follows: * Arua: USD 23.81 million; * Bushenyi-Ishaka: USD 10.04 million; * Gulu: USD 15.95 million; * Mbale: USD 0.58 million. * Project preparation USD 0.50 million The original allocations total USD 55.10 million and not the USD 54.5 million that were eventually allocated for the NWSC component. This was due to the SDR exchange rate to the USD dropping towards the end of contract negotiations and, not to amend all budget projections that were made just prior to the loan approval by the Board of World Bank, estimates for each of the towns were left unchanged. NWSC, in addition to infrastructure project financing as stated above, received a grant for Financial Modelling & Minimum Cost Investment Planning. The grant volume was USD 227,000 (Two Hundred Twenty Seven Thousand) and financed by the United Kingdom Department for International Development (DIFID) and disbursed through the International Development Association (IDA) of World Bank. The grant agreement was signed between IDA and MoFPED on the 23rd of May 2012 and also became effective for disbursement on that date. Disbursement towards NWSC from IDA was part of the WMDP project. The initial objectives of the financial modelling & minimum cost investment planning work were: 6 NATIONAL WATER AND SEWERAGE CORPORATION WATER MANAGEMENT AND DEVELOPMENT PROJECT SPECIAL PURPOSE PROJECT FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 * 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 foan on the project. * To develop a methodology that supports NWSC towards infrastructure investment planning that results in sustainable infrastructure investment at minimum cost, Due to delays in grant approval and procurement, the objectives of the work were slightly amended: a) To build a financial model for NWSC that allows determination of investments on its cash flow position over the years to come and, through that, determine their viability. b) To develop a methodology that supports NWSC towards infrastructure investment planning that results in sustainable infrastructure investment at minimum cost. The contract for financial modelling & minimum cost investment planning was signed on the 16th of August 2013 and the completion report for the work is dated on the 25th of November 2013. The final payment for the project was recorded by the consultant's bank on the 08th of April 2014. 1.1 PHYSICAL PROJECT PROGRESS To date, the following project milestones have been achieved: Bushenyi Physical construction works are at approximately 75% complete with 100% of the original project time i.e. 16 months, elapsed the World Bank has given its No Objection to a four months' time extension which extends the completion date from 5ih August 2017 to 501 December 2017 The time period for consultancy services has also been increased by an additional four months. Gulu The works contract was signed on 2nd June 2017. To date the contract parties have held two pre- commencement meetings, one on 20h June 2017 and another on 25 July 2017 to monitor the contractors progress during the mobilization period and to ensure that the necessary controls and systems are in place to enable a successful construction period. The construction works are foreseen to commence on 1' September 2017. Mbale The Mbale Water Supply and Sanitation Project had initially been fronted as one of the towns in the current Water Management and Development Project (WMDP) which would require additional financing from the World Bank. Siting numerous requirements for additional funding from all the beneficiary agencies in the current WMDP, the World Bank decided that a new project be packaged to (i) finance the projects that did not have sufficient funds and (ii) to fund new projects. 7 NATIONAL WATER AND SEWERAGE CORPORATION WATER IANAGEMENT AND DEVELOPMENT PROJECT SPECIAL PURPOSE PROJECT FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 In this regard, Mbale will be financed under the next Water Management and Development Project which is currently under preparation. It is foreseen that the works tender for Mbale will be announced in May/June 2018 and awarded by the end of the year 2018. Arua Physical construction works are at approximately 70% complete with 90% of the original project time i.e 30 months, elapsed. The construction works are foreseen to be completed at the end of October 2017. 8 NATIONAL WATER AND SEWERAGE CORPORATION WATER MANAGEMENT AND DEVELOPMENT PROJECT SPECIAL PURPOSE PROJECT FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 2.0 AUDIT OBJECTIVES AND SCOPE 2.1 OBJECTIVE OF THE AUDIT The objective of the audit of the Project Financial Statements (PFSs) is to enable us to express a professional opinion on the financial position of the project as at 30 June 2017, and on the funds received and expenditures incurred for the year under review. The project books of accounts provide the basis for preparation of the PFSs by the project implementing agency and are established to reflect the financial transactions in respect of the project. The implementing agency maintains adequate internal controls and supporting documentation for transactions. 2.2 SCOPE OF SERVICES The audit of the project's financial statements was carried out in accordance with International Standards on Auditing (ISA) promulgated by the International Federation of Accountants (IFAC), and included such tests and auditing procedures we considered necessary under the circumstances. In conducting the audit we paid special attention as to whether the; * World Bank financing was used in accordance with the conditions with the relevant financing agreement, with due attention to economy and efficiency, and only for the purposes for which the financing was provided (Credit Number 5127-UG signed 22nd May 2013 and the subsidiary Financing Agreement between the Government of Uganda and NWSC signed 17h June 2013). * Counterpart funds were provided and used in accordance with the relevant financing agreements , with due attention to economy and efficiency, and only for the purposes for which they were provided; * Goods, works and services financed were procured in accordance with the relevant financing agreements including specific provisions of the World Bank Procurement Policies and Procedures and were properly accounted for; * All necessary supporting documents, records, and accounts were maintained in respect of all project activities, including expenditures reported using Statements of Expenditure (SOE) or Interim Unaudited Financial Reports (lUFRs) methods of reporting. We verified that respective reports issued during the period to ensure they were in agreement with the underlying books of account and in accordance with the IFRS. * The Designated Account was maintained in accordance with the provisions of the relevant financing agreements and funds disbursed out of the Account were used only for the purpose intended in the financing agreement; * National laws and regulations were compiled with, and that the financial and accounting procedures approved for the project (e.g- operational manual, financial procedures manual etc.) were followed and used; * Financial performance of the project is satisfactory. * Ineligible expenditures included in withdrawal applications are identified and reimbursed to the Designated Accounts. These shall be separately noted in the audit report and if material, shall be reflected in our audit opinion. 9 NATIONAL WATER AND SEWERAGE CORPORATION WATER MANAGEMENT AND DEVELOPMENT PROJECT SPECIAL PURPOSE PROJECT FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 In complying with international Standards on Auditing, we paid particular attention to the following matters. * Fraud and Corruption: In accordance with ISA 240(The Auditors Responsibilities Relating to Fraud in an Audit of Financial Statements) we identified and evaluated risks related to fraud, obtained or were provided sufficient evidence of analysis of these risks and assessed properly the risks identified or suspected; * Laws and Regulations: In preparing the audit approach and in executing the audit and review procedures, we evaluated compliance with the provisions of laws and regulations that might impact significantly on the recoverable expenditure statement as required by ISA 250 (Considerations of Laws and Regulations in an Audit of Financial Statements); * Governance: Communicated with those charged with Governance regarding significant audit issues related to governance in accordance with ISA 260: (Communication with those charged with Governance); and * Risks: With a view to reducing audit risks to a relatively low level, we applied appropriate audit procedures and handled anomalies/risks identified during our evaluation This is in accordance with ISA 330 (The Auditor's Responses to Assessed Risks). 10 NATIONAL WATER AND SEWERAGE CORPORATION WATER MANAGEMENT AND DEVELOPMENT PROJECT SPECIAL PURPOSE PROJECT FINANCIAL STATEMENTS FOR THE YEAR ENDED 30JUNE 2017 3.0 STATEMENT OF MANAGEMENT'S RESPONSIBILITIES It is the responsibility of Management to prepare Project Financial Statements for each financial year that presents fairly in all material aspects the state of affairs of the Water Management and Development Project (WMDP) as at the end of the financial year and of the surplus or (deficit) for that year in accordance with International Public Sector Accounting Standard; "Financial Reporting under the cash basis of Accounting" (the IPSAS) and World Bank's Financial Management Sector Board's Guidelines: Annual Financial Reporting and Auditing for World Bank Financed activities. Management is also required to ensure that the project maintains proper accounting records that disclose, with reasonable accuracy, the financial position of the project. Management 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 is free from material misstatement whether due to fraud or error. Management also accepts responsibility for i. designing, implementing and maintaining such internal control as they determine is necessary to enable the preparation of the project accounts that is free from material misstatement, whether due to fraud or error; ii. selecting and applying appropriate accounting policies; and iii. making accounting estimates and judgements that are reasonable in the circumstance. Management is of the opinion that the project accounts give a true and fair view of the financial position of the project as at 30 June 2017 and of the project's financial performance for the period then ended in accordance with the accounting policies set out on page 20-22, In preparing this 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 Management on.4M.&tti4...2017 and signed on its behalf by; Managing Director Corporation Secretary National Water and Sewerage Corporation National Water and Sewerage Corporation 11 NATIONAL WATER AND SEWERAGE CORPORATION WATER MANAGEMENT AND DEVELOPMENT PROJECT SPECIAL PURPOSE PROJECT FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 BALANCE SHEET AS AT 30 JUNE 2017 Note 2017 2016 USD USD ASSETS AND CUMULATIVE EXPENDITURE Cash at bank World Bank Designated Account 3 13,600,994.18 14,689,148.60 Cumulative project expenditure 22,969,379.92 13,914 204.33 TOTAL ASSETS AND CUMULATIVE EXPENDITURE 36,570,374.10 28,603,352.93 SOURCES OF FUNDS World Bank - IDA Loan No.51270 - UG 35,680,485.97 27,936,666.20 NWSC 889,888,13 666,686.73 TOTAL FUNDS 36,570,374.10 28,603,352.93 The accounting policies and notes on pages 20 to 30 form an integral part of the special purpose project financial statements. These special purpose project financial statements were approved by management on ;J4T.&-14 L4.. ..and were signed on behalf by: Managing Director Corporation Secretary 15 NATIONAL WATER AND SEWERAGE CORPORATION WATER MANAGEMENT AND DEVELOPMENT PROJECT SPECIAL PURPOSE PROJECT FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 STATEMENT OF RECEIPTS AND PAYMENTS FOR THE YEAR ENDED 30 JUNE 2017 Year ended Year ended Cumulative Cumulative 30 June 2017 30 June 2017 to 30 June 2016 to date 30 June 2017 USD UGX USD USD Notes Opening balance World Bank Loan Designated Account 14,689,148.60 50,087,940,242 ADD: FUNDS RECEIVED BY SOURCE IDA LOAN (Funds to Designated Account) 8 7,743,819.77 28,072,441,310 27,936,666.20 35,680,485.97 NWSC funds g 223,201.40 792,842,624 666,686.73 889,888.13 Total funds for the Project 22,856,169.77 78,853,224,176 28,603,352.93 36,570,374.10 LESS: EXPENDITURE BY CATEGORIES Cat1: Goods, Non consulting services, Consulting services, training 1 8,831,97419 31,520,964,638 13,247,517.60 22,079,941.79 and Operational costs Compensation, RAP office expenditures (NWSC) 11 223,201.40 792,842,624 666,686.73 862,535-86 Total Expenditure 9,055,175.59 32,313,807,262 13,914,204.33 22,969,379.92 BALANCE BEFORE FOREIGN EXCHANGE ADJUSTMENTS 13,600,994.18 46,639,416,914 14,689,148.60 13,600,994.18 Foreign exchange (loss)lgain 12 - 2,268,398,057 16 00 - cqi 0 a)0 (D C) o CO CGC .00 cc Xo e0 O CD CO E = o 0 ro (U æ 0 r er - E z z (o CLo 0- cc to - - E oU w CIL cc =1 0 < ci - Ct o I-- 0 w 0 w w z W 0 z w u- zz z z_ u L - W c) L - -1 OZ r m Zujw F- ø m 0 0 PýwO z- 0:U NATIONAL WATER AND SEWERAGE CORPORATION WATER MANAGEMENT AND DEVELOPMENT PROJECT SPECIAL PURPOSE PROJECT FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 STATEMENT OF COMPARISON OF BUDGET AGAINST ACTUAL Budget Actual Variance 30 June 2017 30 June 2017 USD USD USD RECEIPTS WORLD BANK CREDIT IDA LOAN 24,749,151.70 7,743,819.77 17,005,331.93 NWSC Budget 556,188.99 223,201.40 332,987.59 TOTAL RECEIPTS 25,305,340.69 7,967,021.17 17,338,319.52 PAYMENTS WORLD BANK CREDIT Cat 1: Goods, Non consulting services, Consulting services, training and Operational costs for Parts 24,749,151.70 8,831,974.19 15,917,177.51 1, 2(b), 3(a) &3(b) NWSC-payments (Compensations and RAP office) 556,188-99 223,201.40 332,987.59 TOTAL PAYMENTS 25,305,340.69 9,055,175.59 16,250,165.10 SURPLUSI(DEFICIT) FOR YEAR - (1,088,154.42) 1,088,154.42 These special purpose project financial statements were approved by management on 74 At.9fA412017 and signed on its behalf by: Managing Director Corporation Secretary 18 NATIONAL WATER AND SEWERAGE CORPORATION WATER MANAGEMENT AND DEVELOPMENT PROJECT SPECIAL PURPOSE PROJECT FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 STATEMENT OF SPECIAL (DESIGNATED) ACCOUNT ACTIVITIES FOR THE YEAR ENDED 30 JUNE 2017 ACCOUNT NUMBER : 3240088400001 BANK: BANK OF UGANDA ADDRESS: P.O. BOX 7120 KAMPALA 2017 2017 Note USD UGX Opening Balance as at 1st July 2016 14,689,148,60 50,087,940,242 Add Total Amount deposited by World Bank 8 7,743,819,77 28,072,441,310 Sub total 22,432,968.37 78,160,381,552 Deduct 10 Total amount withdrawn or paid out 8,830,613.93 31,516,231,357 Bank Charges 1,360.26 4,733,281 Exchange rate difference -_ - 2,268,398057 Sub total 8,831,974.19 29,252,566,581 Closing Balance as at 30th June 2017 13,600,994.18 48,907,814,971 These special purpose project financial statements were approved by management on MIA4. UMMI7-2017 and signed on its behalf by: Ianaging Director Corporation Secretary 19 NATIONAL WATER AND SEWERAGE CORPORATION WATER MANAGEMENT AND DEVELOPMENT PROJECT SPECIAL PURPOSE PROJECT FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 NOTES TO THE FINANCIAL STATEMENTS 1. SIGNIFICANT ACCOUNTING POLICIES The principle accounting policies adopted in the preparation of these special purpose financial statements are set out below: 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 The cash basis of accounting recognizes transactions and events only when cash is received or paid by the entity. c) Foreign Currency Transactions Foreign currency translation for the income and expenditure account items are converted using the actual historic exchange rate at the conversion from special to local account. Cash balances held in foreign currency are reported using the closing rate. Gains/Losses on foreign currency transactions/balances are dealt within the Statement of Special Account Activities. 2. BUDGET The budget is developed on the same accounting basis (cash basis), same classification and for the same period as the financial statements. 3. FUND BALANCE The fund balance is made up as follows 30 June 2017 30 June 2017 30 June 2016 USD UGX USD Designated Bank balance 13,600,994.18 46,639,416,914 14,689,148.60 Exchange Rate Differences - 2,268,398,057 - Fund Balance 13,600,994.18 48,907,814,971 14,689,148.60 All the project funds are held on the designated account with Bank of Uganda. 20 NATIONAL WATER AND SEWERAGE CORPORATION WATER MANAGEMENT AND DEVELOPMENT PROJECT SPECIAL PURPOSE PROJECT FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) 4. DIRECT PAYMENTS There were no payments made by the World Bank directly to the specified supplier service provider. 5. GOVERNMENTICOUNTERPART FUNDS This project is 100% funded by the bank for actual project implementation, this excludes issues like compensation which were purely funded through NWSC's capital budget. The total compensation cost of USD 223,201.40 is included in the statement of receipts and payments as NWSC funds. 6. NON-CURRENT ASSETS All assets acquired so far on 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 the project implementing agency maintains a list of such acquired assets as listed below. There were no additions during the year. I.T EQUIPMENT WMDP Area No. Item Make Serial Number Allocation 1 Laptop LENOVO G50-70 CB13299808 Arua 2 Lapto LENOVO G50-71 CB31548461 Arua 3 Desktop DELL OPHPLEX 9020 DG7ZVO2 Arua 4 Desktop Dell optiplex 3020 97XTJ32 Arua 5 Lptop LENOVO LAPTOP CB 13300176 Arua HP OFFICEJET 7500 AA IN 6 Printer ONE MY 44L4102 Arua IHrard Disk -7 External ITB 0026001966 Arua 8 BACK UPS APC650VA 53B1433X15612 Arua 9 BACK UPS APC 650 VA 53BI428X23455 Arua 10 Laptop DELL E5530 24881730301 Bushenyi 11 Laptop DELL E5530 4958125309 Bushenyi 12 Laptop DELL E5530 35498629693 Bushenyi 13 Desktap Deli optiplex 7020 2247605102 Bushenyi 14 Desktop Dell ptplex 7020 22490541438 Bushenyl HP OFFICEJET 7500 ALL IN 15 Printer ONE MYS4S51077 Bushenyi 16 Printer Kyocera FS-6525MFP 1102MX3NL2 Bushenyl 17 UPS BACKUP 650 3B1437X29020 Bushenyl 18 UPS BACKUP 650 3B1437X24003 Bushenyl 21 NATIONAL WATER AND SEWERAGE CORPORATION WATER MANAGEMENT AND DEVELOPMENT PROJECT SPECIAL PURPOSE PROJECT FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 VEHICLES Vehicle Engine Number Yearof WMDP ume Countl Num be r plate__ ___ No. make Chasis Number Model ry Number plate Color Body design I Fuel I Manufacture Area LANDCRUISER JTEBH9F JO0K KDJ15R-GKFEY j STATION 1 TOYOTA 151085 HILUX DICABIN JAPAN 1KD2465781 UAW 669Z WHITE WAGON DIESEL 2015 Arua HILUX DICABIN KUN25R- SOUTH DOUBLE TOYOTA AHTFZ29G409126520 PRMDHN AFRICA 1KDA675995 UAW 674Z WHITE CARBIN DIESEL 2015 Arua HILUX DICABIN KUN25R- SOUTH DOUBLE 3 TOYOTA AHTFZ29G009127292 PRMDHN AFRICA 1KDA684399 UAW671Z WHITE CARBIN DIESEL 2015 Arua I HILUX D/CABIN KUN25R- SOUTH DOUBLE 4 TOYOTA AHTFZ29G209126919 PRMDHN AFRICA 1KDA68020 UAW701Z WHITE . CARBIN DIESEL 2015 Arua TOYOTA HILUX VIGO(KUN26R DOUBLE 5 TOYOTA MROfZ29G302574254 PRMSYT) THAILAND 1KDU732844 UAY072Z WHITE CARBIN DISEL 2015 Bushenyi TOYOTA I LANDCRUSER PRADO(TK-AHO- SOUTH DOUBLE 6 TOYOTA JTEBH3FJXOK175777 EF831) AFORUCA A KD2558441 UAY118Z GREY CARBIN DISEL 2015 Bushei 7 OYTAI __ __ jSOUTH DOUBLE 7 TOYOTA AHTFZ29G109142366 [TOYOTA HILUX AFRICA IKDA878580 UAY119Z SILVER CARBIN DISEL 2015 Bushenvi 22 NATIONAL WATER AND SEWERAGE CORPORATION WATER MANAGEMENT AND DEVELOPMENT PROJECT SPECIAL PURPOSE PROJECT FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) 7. STATEMENT OF SPECIAL ACCOUNT RECONCILIATION FOR THE YEAR ENDED 30 JUNE 2017 2017 2017 Account NO. 3240088400001 Bank : Bank of Uganda USD UGX I Total advanced from inception 35,680,485,97 116,541,067,329 2 Less amount recovered 3 Outstanding amount advanced 35,680,485.97 116,541,067,329 Represented by: 4 Special account balance at 30 June 2017 13,600,994.18 48,907,814,971 5 Amounts claimed not yet credited at 30 June 2017 6 Amounts withdrawn not yet claimed 7 Amounts withdrawn from special account at 30 June 2017 22,076,274,16 74,233,729,539 8 Less interest earned and/or plus bank charges 3,217.63 10,916,938 9 Total special account advance 35,680,485.97 123,152,461,448 Difference between line 3 and line 9 NIL (6,611,394,119) Difference is Exchange loss in local currency (6,611,394,119) 23 NATIONAL WATER AND SEWERAGE CORPORATION WATER MANAGEMENT AND DEVELOPMENT PROJECT SPECIAL PURPOSE PROJECT FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) 8. STATEMENT OF EXPENDITURE (SOE) - WITHDRAW APPLICATIONS STATEMENT FOR THE YEAR ENDED 30 JUNE 2017 BY CATEGORY OF EXPENDITURE Goods, consulting & non- consulting W/A services, training & Number W/A date operational costs Other Total USD USD USD No. 023 19/12/2016 368,048.44 368,048.44 No. 025 04/04/2017 1,285,751.17 - 1,285,751.17 No- 027 18/05/2017 6,090,020.16 - 6,090,020.16 7,743,819.77 - 7,743,819.77 9. NWSC FUNDING USD Exchange Rate UGX Audit fees-PKF 4,138.99 3382.47 14,000,000 NEMA Fees 18,790.99 3595.86 67,569,677 RAP Costs Arua 754.30 3,380.6 2,550,000 RAP Costs Arua 2,731.75 3,383.2 9,242,000 RAP Costs Arua 680.54 3,394.4 2,310,000 RAP Costs Arua 1,324-67 3,536.7 4,685,000 RAP Costs Arua 2,248.29 3,588.9 8,069,000 RAP Costs Arua 758.52 3,597-1 2,728,500 RAP Costs Arua 1,157.78 3,608.6 4,178,000 RAP Compn Arua Batch 14 12,607.32 3,514.4 44,307,151 RAP Compn Arua Augufea 5,295.32 3,634.8 19,247,178 RAP Compn Arua Batch 15 18,098,57 3,626.4 65,632,662 RAP Compensation Arua 10,496.20 3,649.6 38,307,240 RAP Compn Arua Batch 15 15,105.60 3,600.7 54,390,597 RAP Salaries March 2017 632.94 3,649.6 2,310,000 RAP Compensation Arua 5,724.43 3,649.6 20,892,049 RAP Costs Arua 1,589.20 3,649.6 5,800,000 RAP Salaries April 2017 535.65 3,634.8 1,947,000 RAP salaries May 2017 553.41 3,607.6 1,996,500 RAP Costs Arua 665.26 3,607.6 2,400,000 RAP Costs Arua 961.21 3,641.3 3,500,000 RAP salaries June 2016 456.13 3,380.6 1,542,000 RAP Compensation Arua 7,705.15 3,385.4 26,084,851 RAP costs Arua 95.89 3,597.9 345,000 Arua Stale cheques (3,746.38) 3,594.4 (13,465,964.00) Arua Stale cheques (768.58) 3,394.4 (2,608,827.00) RAP salary Feb 2017 Bushenyi 472.54 3,593.4 1,698,000 24 NATIONAL WATER AND SEWERAGE CORPORATION WATER MANAGEMENT AND DEVELOPMENT PROJECT SPECIAL PURPOSE PROJECT FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 9. NWSC FUNDING (Continued) USD Exchange Rate UGX RAP Costs Bushenyi 10,253.80 3,380.4 34,661,980 RAP Costs Bushenyi 1,645.00 3,380.7 5,561,181 RAP Compensation Bushenyi 19,660,97 3,393.6 66,720,674 Stale CHQs-Comp Bushenyi (4,585,05) 3,393.56 (15,559,640) RAP Compensation Bushenyi 15,885.40 3,617.7 57,468,141 RAP Compensation Bushenyi 12,514.15 3,617.7 45,272,048 RAP Compensation Bushenyi 9,126.40 3,383.6 30,880,162 RAP Costs Bushenyi 586.37 3,382.5 1,983,400 RAP Cots Bushenyl 909.44 3,382.2 3,075,948 RAP Costs Bushenyi 645.37 3,633.6 2,345,000 RAP Costs Bushenyi 516.18 3,633.6 1,875,578 RAP Costs Bushenyi 1,606,69 3,615.5 5,809,000 RAP Costs Bushenyi 862.79 3,633.6 3,135,000 RAP Costs Bushenyl 2,019.22 3,470.2 7,007,000 RAP Costs Bushenyi 1,464.22 3,380.6 4,950,000 RAP Compn Busheny Batch08 13,682.40 3,590.3 49,124,329 RAP Salary Bushenyl Feb17 1,072.32 3,590.3 3,850,000 RAP Salary Bushenyi Mar17 1,045.83 3,618.17 3,784,000 RAP Compn Busheny Batch11 3,328.14 3,637,75 12,106,957 RAP Compn Busheny Batchl2 1,951.57 3,637.75 7,099,313 RAP Salary busheny Apr17 955,44 3,649.63 3,487,000 RAP Costs Bushenyi 673.49 3,637.75 2,450,000 RAP Compn Busheny! 5,677.48 3,609.36 20,492,052 RAP Costs Bushenyi 1,073.34 3,609.28 3,874,000 RAP Costs Bushenyi 86-07 3,601.72 310,000 RAP Costs Bushenyi 139.10 3,594.53 500,000 RAP salaries bushenyi 1,052.67 3,594.57 3,784,000 RAP Compn Batch 13 1,797.31 3,594.90 6,461,141 RAP Costs Bushenyi 223.15 3,611.72 805,946 RAP Costs Bushenyi 4,422.30 3,618.03 16,000,000 RAP Salaries Gulu 614.59 3,571.18 2,194,800 RAP Salaries Gulu 561.99 3,597.92 2,022,000 RAP Salaries Gulu 472.96 3,590.19 1,698,000 RAP Salaries Gulu 559-45 3,614.25 2,022,000 RAP Salaries Gulu 526.78 3,629.63 1,912,000 RAP Costs Gulu 554.38 3,607.63 2,000,000 RAP Salaries Gulu 554.03 3,649.63 2,022,000 223,201 .40 792,842,624 25 NATIONAL WATER AND SEWERAGE CORPORATION WATER MANAGEMENT AND DEVELOPMENT PROJECT SPECIAL PURPOSE PROJECT FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) 10. PROJECT EXPENDITURE Particulars USD Exchange Rate UGX Goods, Non-consulting services, Consulting services, training and Operational costs AWE Invoice 598 $82,418.3 82,41638 3,562.82 293,634,727 WIHT IFO AWE Invoice 598 5,276.56 3,600.96 19,000,681 CES consulting Invoice 3 4,823,95 3,600.96 17,370,851 CES Consulting Invoice 3 Eur 33,765 37,756.07 3,385.38 127,818,644 WHT FO CES Invoice 3 UGX 851.28 3,600.96 3,065,425 WHT IFO CES Invoice 3 USD 6,378,54 3,600.96 22,968,867 CES INVOICE 4 USD component 4,817.93 3,602.60 17,357,075 CES INVOICE 4 EUR 33,765 35,878,74 3,591.29 128,850,960 WHT CES EURO Invoice 4 6,296.81 3,601.47 22,677,772 WHT CES UGX Invoice 4 850.56 3,601-47 3,063,266 Egis HDV23050V/5A $30,530 30,530.14 3,377.34 103,110,662 Egis HDV23050V5B $39,775 39,774.88 3,377.34 134,333,301 Egis HDV23050V/7A $15,265 15,265,06 3,377.34 51,555,314 Egis HDV23050VI7B $19,887 19,887.44 3,377.34 67,166,650 Egis HDV2305OVI9A $15,265 15,265.06 3,377.34 51,555,314 Egis HDV2305OV/9B $19,887 19,887.44 3,377.34 67,166,650 EGIS INVOICES $23,465 23,465.00 3,602.44 84,531,255 EGIS INVOICES EUR 92,480 99,444.05 3,602.44 358,241,223 EGIS WHT HDV23050V15A 5,485.75 3,380.64 18,545,346 EGIS WHT HDV2305OV/5B 7,015.71 3,380.64 23,717,590 EGIS WHT HDV23050V/7A 2,742.87 3,380.64 9,272,656 EGIS WHT HDV2305OV/7B 3,507.85 3,380.64 11,858,778 EGIS WHT HDV2305OV9A 2,742.87 3,380.64 9,272,656 EGIS WHT HDV23050V/9B 3,507.85 3,380.64 11,858,778 Fichnterinvl0 Eur181759 203,424.67 3,380.72 687,721,850 FICHTNER D15/1156(INV.8) 28,248.96 3,380.64 95,499,564 FICHTNER D1610145(INV.9) 22,444,45 3,380.64 75,876,605 FiCHTNER INV 5 Eur 44,300 47,348.49 3,588.89 169,928,522 Fichtner Inv.8 $184,959.9 184,960,00 3,377.34 624,670,855 Fichtner lnv.9 $146,958.6 146,958.21 3,377.34 496,327,857 F1CHTNR INV.12 EUR130,508 141,255.99 3,627.04 512,341,126 Fictner D1610841(INVi1) 154,857.49 3,617.67 560,223,296 WHT FICHTNER INV 5 8,261.16 3,601.47 29,752.319 WHT IFO Fictner lnv10 29,184.16 3,600.96 105,090,993 WHT IFO Fictner Invil 23,490.52 3,600.96 84,588,423 Nicholas Odwyr $14,578.15 14,578.11 3,377.34 49,235,223 NICHOLAS WHT INV 11759 16,699.25 3,380.64 56,454,153 NICHOLAS WHT INV 12174 5,566.36 3,380.64 18,817,859 O'DWYER FEE NOTE 05 30,570.40 3,449.44 105,450,761 26 NATIONAL WATER AND SEWERAGE CORPORATVOK WATER MANAGEMENT AND DEVELOPMENT PROJECT SPECIAL PURPOSE PROJECT FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 10. PROJECT EXPENDITURE (Continued) Particulars USD Exchange Rate UGX WHT IFO Nicholas O'dwyer 5,285.33 3,600.96 19,032,262 FITCHNER INV 13 EUR COMP 136,360.70 3,593.69 490,038,084 WHT IFO EGIS EAU USD 4,140.95 3,594.64 14,885,241 WHT IFO EGIS EAU EUR 18,278.81 3,594.64 65,705,751 WHT FITCHNER INV 12 25,706.07 3,594.64 92,404,084 WHT FITCHNER INV 13 24,066,26 3,594.64 86,509,544 Dott IPC 9 USD Component 1,000,397.74 3,597.92 3,599,351,037 Dott DAB UGX Component 502.17 3,600.96 1,808,294 Dott DAB0I USD Component 7,213.59 3,390.85 24,460,202 Dott DAB01 Euro 9425 10,573.90 3,390.85 35,854,509 DOTT IPC 10 USD Component 1,515,196.36 3,619.74 5,484,616,872 DOTT IPC 10 UGX Component 275,639,51 3,632.85 1,001,356,994 DOTT IPC 7 $419,599.75 419,599.75 3,632-85 1,416,648,480 Dott IPC 8 UGX Component 114,841.38 3,600.96 413,539,216 Dott PC 8 USD Component 625,221,31 3,562.82 2,227,550,988 DOTT IPC 9 UGX COMP 183,525.17 3,602,60 661,167,777 DOTT IPC 9 UGX Component 11,719.02 3,602.60 42,205,699 Dott Service IPC 7 UGX 82,067.71 31380.64 275,278,899 WHT DOTT IPC 4 USD Component 48,066.00 3,380.64 162,493,842 WHT IFO Dott IPC8 UGX Component 7,330.30 3,600.96 26,396,117 WHT IFO Dott IPC8 USD Component 40,028.68 3,600.96 144,141,676 Zhonghao IPC 03 USD Component 624,250-00 3.597.92 2,246,001,660 Zhonghao IPC 02 USD Component 307,886.00 3,610.29 1,111,557,747 ZHONGHAO IPC 3 UGX Component 615,226.41 3,602.60 2,216,414,665 ZHONGHAO IPC 4 USD Component 135,496.00 3,618.15 490,244,852 ZHONGHAO IPC 4 UGX Component 132,419.88 3,632.85 481,061,561 ZHONGHAO IPC 5USD Component 265,884.00 3,744.91 962,008,195 ZHONGHAO IPC 5 UGX Component 259,847.56 3,632.85 943,987,208 Zhonghao IPC 02 UGX Component 303,814.07 3,600.96 1,094,018,713 ZHONGHAO IPC 6 USD Component 98,312.00 3,594.22 353,354,957 Sub total 8,830,613.93 31,516,231,357 Bank charges 1,360.26 3,479.69 4,733,281 TOTAL 8,831,974.19 31,520,964,638 27 NATIONAL WATER AND SEWERAGE CORPORATION WATER MANAGEMENT AND DEVELOPMENT PROJECT SPECIAL PURPOSE PROJECT FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) 11. PAYMENTS BY NWSC Particulars USD Exchange Rate UGX Audit fees-PKF 4,138.99 3,382.47 14,000,000 NEMA Fees 18,790,99 3,595.86 67,569,677 RAP Costs Arua 754.30 3,380.62 2,550,000 RAP Costs Arua 2,731.75 3,383.18 9,242,000 RAP Costs Arua 680.54 3,394.36 2,310,000 RAP Costs Arua 1,324.67 3,536.73 4,685,000 RAP Costs Arua 2,248.29 3,588.95 8,069,000 RAP Costs Arua 758.52 3,597,14 2,728,500 RAP Costs Arua 1,157.78 3,608.63 4,178,000 RAP Compn Arua Batch 14 12,607.32 3,514.40 44,307,151 RAP Compn Arua Augufea 5,295.32 3,634.75 19,247,178 RAP Compn Arua Batch 15 18,098.57 3,626.40 65,632,662 RAP Compensation Arua 10,496.20 3,649.63 38,307,240 RAP Compn Arua Batch 15 15,105.60 3,600.69 54,390,597 RAP Salaries March 2017 632.94 3,649.63 2,310,000 RAP Compensation Arua 5,724.43 3,649.63 20,892,049 RAP Costs Arua 1,589.20 3,649.63 5,800,000 RAP Salaries April 2017 535.65 3,634.83 1,947,000 RAP salaries May 2017 553.41 3,607.63 1,996,500 RAP Costs Arua 665.26 3,607.63 2.400,000 RAP Costs Arua 961.21 3,641.25 3,500,000 RAP salaries June 2016 456.13 3,380.63 1,542,000 RAP Compensation Arua 7,705.15 3,385.38 26,084,851 RAP costs Arua 95.89 3,597.92 345,000 Arua Stale cheques (3,746.38) 3,594.4 (13,465,964) Arua Stale cheques (768-58) 3,394.4 (2,608,827) RAP salary Feb 2017 Bushenyi 472.54 3,593.36 1,698,000 RAP Costs Bushenyi 10,253.80 3,380.40 34,661,980 RAP Costs Busheny! 4,422.30 3,618.03 16,000,000 RAP Costs Bushenyi 1,645.00 3,380.67 5,561,181 RAP Compensation Bushenyi 19,660.97 3,393.56 66,720,674 Stale CHQs-Comp Bushenyi (4,585.05) 3,393.56 (15,559,640) RAP Compensation Bushenyi 15,885.40 3,617.67 57,468,141 RAP Compensation Bushenyi 12,514.15 3,617.67 45,272,048 RAP Compensation Bushenyi 9,126.40 3,383.61 30,880,162 RAP Costs Bushenyi 586.37 3,382.51 1,983,400 RAP Cots Bushenyi 909.44 3,382.24 3,075,948 RAP Costs Bushenyi 645.37 3,633.58 2,345,000 RAP Costs Bushenyi 516.18 3,633.58 1,875,578 RAP Costs Bushenyi 1,606.69 3,615.50 5,809,000 RAP Costs Bushenyi 862-79 3,633.58 3,135,000 RAP Costs Bushenyi 2,019.22 3,470.16 7,007,000 RAP Costs Bushenyi 1,464.22 3,380.63 4,950,000 RAP Compn Bushenyi Batch08 13,682.40 3,590.33 49,124,329 RAP Salary Bushenyi Feb17 1,072.32 3,590.33 3,850,000 28 NATIONAL WATER AND SEWERAGE CORPORATION WATER MANAGEMENT AND DEVELOPMENT PROJECT SPECIAL PURPOSE PROJECT FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 PAYMENTS BY NWSC (continued) Particulars USD Exchange Rate UGX RAP Salary Bushenyi Mar17 1,045,83 3,618.17 3,784,000 RAP Compn Bushenyj Batch 11 3,328.14 3,63775 12,106,957 RAP Compn Bushenyi Batchl2 1,951.57 3,637.75 7,099,313 RAP Salary Bushenyi Aprl7 955.44 3,649.63 3,487,000 RAP Costs Bushenyi 673.49 3,637.75 2,450,000 RAP Compn Bushenyl 5,677.48 3,609.36 20,492,052 RAP Costs Bushenyi 1,073.34 3,609.28 3,874,000 RAP Costs Bushenyi 86.07 3,601,72 310,000 RAP Costs Bushenyi 139.10 3,594.53 500,000 RAP salaries Bushenyi 1,052.67 3,594.67 3,784,000 RAP Compn Batch 13 1,797.31 3,594,90 6,461,141 RAP Costs Bushenyi 223.15 3,611.72 805,946 RAP Salaries Gulu 614.59 3,571.18 2,194,800 RAP Salaries Gulu 561.99 3,597 92 2,022,000 RAP Salaries Gulu 472.96 3,590.19 1,698,000 RAP Salaries Gulu 559.45 3,614.25 2,022,000 RAP Salaries Gulu 526.78 3,629.63 1,912,000 RAP Costs Guiu 554.38 3,607.63 2,000,000 RAP Salaries Gulu 554.03 3,649.63 2,022,000 TOTAL 223,201.40 792,842,624 29 NATIONAL WATER AND SEWERAGE CORPORATION WATER MANAGEMENT AND DEVELOPMENT PROJECT SPECIAL PURPOSE PROJECT FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) 12. EXCHANGE RATE GAINS/(LOSSES) During the year under review the exchange rates were fluctuating and the Uganda shilling generally depreciated against the USD from UGX 3,382.47 per USD 1 at the year beginning to UGX 3,595.90 per USD 1 at 30 June 2017. The exchange difference at the year-end was UGX 2,268,398,057. 30 NATIONAL WATER AND SEWERAGE CORPORATION WATER MANAGEMENT AND DEVELOPMENT PROJECT SPECIAL PURPOSE PROJECT FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 ANNEX 1: PROJECT WORK PLAN WATER MANAGEMENT AND DEVELOPMENT PROJECT-WORKPLAN - 2016/2017 Component 2.1 NWSC Sub- LOT Activity i - - I Component Component No Description Out put Q1 Q2 Q3 Q4 Total USD INPUTS RESPONSIBLE Gulu design Contract Consultancy documentation 36.209 _ 36,209 Consultant Gulu ESIA & RAP Approved 2,1: Water Consultancy ESIA and RAP 24,283 24,283 Consultant Supply and ___________ SanItation Gulu Supervision Progress . under Consultancy reports - 186,619 112,856 299,475 Consultant under ----- I-_ NWSC-Gulu Gulu Works Contract U) Implementation Works Started - 3,564,703 1,947,107 5,511,810 Contractor GU,00 LU7TA ag 2428 3209 3751,322 i 2059j963 5;871 77 Final tender documents, docuentsCyrus Titus (D Bushenyi Design contract Cyu u a Consultancy documentation 96,315 79,366 175,681 Consultant E Bushenyi ESIA & 02.1: Water o RAP Approved Supply and Consultancy ESIA and RAP 28,717 28,717 Consultant Sanitation Busheny- under Buhey NWSC- Supervision Progress Bushenyi Consultancy reports 104,886 35,976 35,976 63,572 240,410 Consultant Bushenyi Works Contract Implementation Works Started 2,500,000 857,500 857,500 1,515,257 5,730,257 Contractor BUSHENYI_ _________ _ _ _ sT~ AL 2-729.918 972,8421 89a47 6 1578 RP . A 1. _5 31 NATIONAL WATER AND SEWERAGE CORPORATION WATER MANAGEMENT AND DEVELOPMENT PROJECT SPECIAL PURPOSE PROJECT FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 Arua ESIA & RAP Approved Consultancy additional 2,1: Water (Sup2aLem.ent;._. ESIA and RAP 57,342 __ 57342 Supply and Arua Supervision Progress Sanitation Consultancy reports 194,743 194,743 194,743 584,229 Consultant under Arua Works NWSC-Arua Contract Works in Implementation progress 3,952,894 3,952,894 3,952,894 11,858,682 Contractor JttIARWIATOT.,AL. ; <:. :4204L979 4.147637 4176 - 12,500253 ,A; Final design report and final tender documents, Mbale Design contract Consultancv documentation 59,457 59,457 38,084 156,998 Consultant 2. 1: Water Mbale ESIA& Supply and RAP Approved Sanitation Consultancy ESIA and RAP 15,033 15,023 15,003 45,059 Consultant under Mbale NWSC- Supervision Progress Consultancy rots - - - Consultant Mbale Works Contract Implementation Works Started - - Contractor MBALE TOTAL ' . 74,490 74,480 53,087 - 202.057 GRAND-TOTAL . _ i 7,033,670- 5,231,168 .8,845,522 3,638.792.' 24,749.152 32