AUDITOR GENERAL'S DEPARTMENT - World Bankdocuments.worldbank.org/.../pdf/Ja-SPSTP-Audit-Rept-P146688-FY-Sept-2016.pdfStatement of Cummulative Investments -Amounts in US$ For the period

IaAUDITOR GENERAL'S DEPARTMENT

PRD LOAN CONTRACT NO. 8406 - IM AND DFID GRANT NO. TFOA 1631

STRATEGIC PUBLIC SECTOR TRANSFORMATION PROJECT (SPSTP)

FINANCIAL STATEMENTS

FOR THE PERIOD OCTOBER 27,2014 - MARCH 31,2016

VISION STATEMENT

"Promoting a Beffer Country Through EffectiveAudit Scrutiny of Government Operations"

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GOJ/IBRD LOAN CONTRACT NO. 8406 - IM AND DFID GRANT NO. TFOA 1633 - JM



PERIOD OCTOBER 27,2014 - MARCH 31, 2 0 16

TABLE OF CONTENTS

Page Number

Independent Auditor's Report 1-4

Financial Statements

Statement of Sources and Uses of Funds 5

Statement of Cumulative Investments 6

Special Account Statement 7

Notes to Financial Statements 8 - 17

GOJ/IBRD LOAN CONTRACT NO. 8406 - JM AND DFID GRANT NO. TF0A 1633 - JM



FOR THE PERIOD OCTOBER 27,2014 - MARCH 31,2016

. 1

AUDITOR GENERAL'S DEPARTMENT40 KNUTSFORD BOULEVARD

P.O. BOX 455KINGSTON 5

JAMAICA

Tel. No.: 926-8309/926-5963/926-5846Fax Number: 968-4690

Email: [email protected]

GOJ/IBRD LOAN AGREEMENT No. 8406-JM and DFID GRANT No. TFOA 1633 - JM

Strategic Public Sector Transformation ProjectPeriod October 27, 2014 - March 31, 2016

AuDrr CERTIFICATE

The audit of the Strategic Public Sector Transformation Project (SPSTP) was conducted in accordancewith Article II Section 2.07 (b) of the Standard Conditions for Loan between the Government ofJamaica (GOJ) and the International Bank for Reconstruction and Development (IBRD) datedSeptember 3, 2014 and the Department for International Development (DFID) grant agreementnumber approved on December 22, 2015.

MANAGEMENT'S RESPONSIBILITY FOR THE FiNANCIAL STATEMENTS

The executing agency, Ministry of Finance and the Public Service, is responsible for the preparationand fair presentation of these Financial Statements, in accordance with International Public SectorAccounting Standards (IPSAS) Cash Basis. This responsibility includes: designing, implementingand maintaining internal controls, relevant to the preparation and fair presentation of financialstatements 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 thecircumstances. The Ministry is also required to present audited Financial Statements to the IBRD.

The attached Financial Statements and supplementary finaicial information which are describedhereunder were submitted to me by the Project Implementation Unit (PIU) to reflect the transactionsof the Programme from its inception in October 2014 to the close of the financial year at March 31,2016.

Statement 1 Statement of Sources and Uses of Funds

Statement 2 Statement of Cumulative Investments by Disbursement Category

U Statement 3 Designated Account Reconciliation Statement as at March 31, 2016

Notes to the Financial Statements

U

I

2

AUDITOR'S RESPONSIBILIY

My responsibility is to express an opinion on these financial statements based on my audit. I

conducted my audit in accordance with the auditing standards issued by the International

Organisation of Supreme Audit Institutions (INTOSAI). Those standards require that I comply with

ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the

financial statements are free from material misstatements.

These Statements and the supporting accounting transactions and records were examined in

accordance with generally accepted auditing standards recommended by the INTOSAI and

accordingly, included such test and other procedures as I considered necessary. I have obtained all

the information and explanations which I required.

OPINION-FINANCIAL STATEMENTS

In my opinion, the appended Statements 1-2 and Supplementary Financial Information reflect a true

and fair view of the transactions of the Project for the period under review and the transactions

conformed to the terms of the Loan and Grant Agreements.

COMPLIANCE WITH APPLICABLE LAWS, REGULATIONS AND FINANCIAL CLAUSES OF THE LOAN

AGREEMENT

During the period under review, I examined compliance by the Project Coordination Unit of the

Executing Agency with the applicable laws and regulations related to the Project's financial activities

and with the accounting/financiall management clauses of the Loan Agreement No. 8406-3M. There

was general compliance with the following articles contained in the Loan Agreement mentioned:

Article III - Section 3.01: Article V of the General Conditions

Article III - Section 3.02: Schedule 2 Project Execution

Section I Implementation Arrangements

Section II Project Monitoring, Reporting and Evaluation

Section III Procurement

Section IV Withdrawal of Loan Proceeds

OPINIoN - GENERAL

In my opinion, the PIU maintained an adequate accounting system based on separate and clearly

identifiable accounts which enabled the recording, monitoring and reporting of the operations and

costs under the programme in accordance with satisfactory accounting/financial/management

practices and standards as required by Schedule II Section 2 (B) of the Loan Agreement.

3

AUDff OF THE SPECIAL BANK AccoUNT

I have examined the appended Special Bank Account Statement - Statement 3, reflecting themovement in the Special Bank Accounts for the period ended March 31, 2016. The Special BankAccounts for the World Bank Loan and DIFD Grant bearing account numbers 810150 and 810290respectively are maintained in United States Dollars in the name of the Ministry of Finance/ StrategicPublic Sector Transformation Project Loan Agreement No. 8406-JM and DFID Grant Contract No.TFOA 1633 - JM. My examination was made in accordance with the standards of the InternationalOrganisation of Supreme Audit Institutions (INTOSAI) and accordingly included such tests of theaccounting records and other procedures I considered necessary.

OPINION - SPECIAL BANK AccouNT

In my opinion, the Special Bank Account Statement reflects the balance in the Special BankAccounts at March 31, 2016 as well as the transactions made during the period October 27, 2014 toMarch 31, 2016 in conformity with International Public Sector Accounting Standards (IPSAS) CashBasis.

Auditor General of Jamaica

Date

4

AUDITOR GENERAL'S DEPARTMENT40 KNUTSFORD BOULEVARD

P.O. BOX 455KINGSTON 5

JAMAICA

Tel. No.: 926-8309/926-5963/926-5846Fax Number: 968-4690

Email: [email protected]

GOJ/IBRD LOAN AGREEMENT No. 8406-JM and DFID GRANT No. TFOA 1633 - JM

Strategic Public Sector Transformation Project

Period October 27, 2014 - March 31,2016

AUDIT OF STATEMENTS OF EXPENDYTURE (SOE) PROCEDURES

In the course of the audit of the Strategic Public Sector Transformation Project (SPSTP) for the eighteen-

month period ending March 31, 2016, I examined the following statements of expenditure submitted to the

IBRD during the financial year under review in support of applications for advance of funds from the Loan

Account in accordance with the Loan and Grant Agreements:

Disbursement Disbursement World Bank DFID TOTAL

Request Date Number Amount Amount US$US$ US$

February13, 2015 B 162,500 162,500

March 31, 2015 1A 421,000 421,000

May 26, 2015 2 14,742 14,742

May 28, 2015 3 423,566 423,566

September 30, 2015 4 809,785 809,785

Total 1,410,593 421,000 1,831,593

The examination was done in accordance with generally accepted auditing standards and procedures

prescribed by INTOSAI and accordingly, included such tests as the verification of the internal control

systems and of the accounting records, tests of the origin and eligibility of expenditures, certification and

procurement procedures for goods and services, filing of supporting documents and such other auditing

procedures as I considered necessary in the circumstances.

Opinion

In my opinion, the statements of expenditure and the annexes submitted in support of them, together with the

internal controls procedures used in their preparation can be relied upon to support the applications for

advance in conforming to the requirements of the Loan and Grant Agreements.

Auditor General of Jamaica

_Date

5

GOVERNMENT OF JAMAICA IBRD LOAN #8406-JM/DFID GRANT #TFOA 1633-JMStrategic Public Sector Transformation ProjectSources and Uses of Funds - Amounts in US$For the period October 27, 2014 to March 31, 2016

Note October 27, 2014 to March 31, 2016 omm t at 31st Mar 2015Sources of Fund: IBRD DFID TOTALExternal

World Bank& DFID:Designated Account 4 1,410,593 421,000 1,831,593 1,410,593 421,000 1,831,593

Direct Payment - - -

Retroactive Financing -Front End Fees 87,50 87I - 87500

Total Receipts (A) 5 k,498093 421,000 1,919,093 1,498093 421000 1,919,093

Uses of Fund by Components:1. Strengtheaing the Public Investment Management Syste (PIMS) 270,072 - 270,072 270,072 270,0722. Strengthening the Budget Preparation Process and Results-Based Budgeting 135,003 - 135,003 135,003 135,0033. Adaptive Public Sector Approaches tp Promote Fiscal Sustainabilty 341,187 - 341,187 341,187 - 341,1874. Strengthening Property Tax Compliance and Administration - -

5a. Fostering industrial Growth and Trade Facilitation - Technical Assistance to BSJ 110,133 110,133 110,133 - 110,1335b. Fostering industrial Growth and Trade Facilitation -Technical Assistance to JCA - -

6.Project Management 286,033 - 286,033 286,033 286,033Front End Fees 87500 87M 87-0 87,TOTAL USES OF FUND 6 1,22929 - 1,229,929 1,229929 - 1.229r929

Sources Less Uses of Fund -Net Change in Cash (A - B) 268,163 421,000 689,163 268,163 421,000 689,163

Foreign Exchange Adjustment

BANK BALANCESOpening Cash Balances

Designated AccountProject Account

Total Opening Balance

Closing Cash BalancesDesignated Account 268,163 421,000 689,163 268,163 421,000 689,163Project Account _ _ _ _ _

Total Closing Balance 7 268,163 421,000 689,163 268,163 421,000 689,163

Approved for issue on behalf of the Strategic Public Sector Transformation Project on 4 , and signed on Its behalf by:

Mr. Du n -Project Sager,SP TP Mr. Sheila Wong - Principal Financial OffCd fS

The amnonnymg notes onlages 8 17fom an integral pas'tofthe j7nncoal stalemens

6

GOVERNMENT OF JAMAICA IBRD LOAN #8406-JM/DFID GRANT #TFOA 1633-JM

Strategic Public Sector Transformation ProjectStatement of Cummulative Investments -Amounts in US$For the period October 27, 2014 to March 31, 2016

October 27, 2014 to March 31, 2016 Cumulative as at March 31, 201618RD DFID TOTAL IBRD DFID TOTAL

EXPENDITURES BY CATEGORY1. Goods, Consultants' Services, Training and Operating Cost 1,142,429 - 1,142,429 1,142,429 * 1,142,429

2. Front End Fees 87,500 - 87,500 87,500 - 87,500

1,229,929 1,229,929 1,229,929 1,229,929

Approved for issue on behalf of the Strategic Public Sector Transformation Project on and signed on its behalf by:

Mr. ns Bryan, ect Inaer, 5 TP Mr he - Principal Finan Officer, MoFPS

The accompanying notes on pages 8 - 17 form an integral part of the financial statements

GOVERNMENT OF JAMAICA IBRD LOAN #8406-JM/DFID GRANT #TFOA 1633-JMStrategic Public Sector Transformation ProjectDesignated Account ReconcilationAs at March 31, 2015

DESIGNATED ACCOUNT RECOfiCILIATION STATEMENT IBRD Loan DFD GRANT - TOTAL FINANERNG

Stratelc PublkStor Tensformalion Prolect- IORD Loan d $406JMIDFIDGat TF4OA103IM Account No. 810150 Account No. 810290 US$

WITH, BnkofJamalca

1 TOTAL ADVANCED BY WORLD BANK (OR COFINANCIER) 1,410,593 421,000 1,831,593

2 LESS: TOTAL AMOUNT DOCUMENTED BY WORLD BANK 493.097 - 493,097

3 PRESENT OUTSTANDING AMOUNT ADVANCED TO THE DESIGNATED ACCOUNT (1- 2) 917,495 421,000 1,338,495

4 BALANCE OF DESIGNATED ACCOUNT PER ATTACHED BANK STATEMENT AS OF DATE 31/03/2016 268,163 421,000 689,163

S PLUS: TOTAL AMOUNT CLAIMED IN THIS APPLICATION NO. 7 417,626 - 417,626

6 PLUS: TOTAL AMOUNT WITHDRAWN AND NOT YET CLAIMED -APPLICATION R 6 231,705 - 231,705

REASON:7 PLUS: AMOUNTS CLAIMED IN PREVIOUS APPLICATIONS NOT YET CREDITED AT DATE OF BANK STATEMENTS

SUBTOTAL OF PREVIOUS APPLICATIONS NOT YET CREDITED8 LESS: INTEREST EARNED9 TOTAL ADVANCE ACCOUNTED FOR (NO. 4 THROUGH NO. 9) 917,495 421,000 1.338,495

10 DIFFERENCE (3 - 91

11 EXPLANATION OF ANY DIFFERENCE SHOWN IN LINE 10

Approved for issue on behalf of the Strategic Public Sector Transformation Project on and signed on Its behalf by:

Mr. ourstan an - P Manager, 5PS P ts, Sheila Wong - Principal Finan1l" car, MoFPS

7he accompanying notes on pages 8 - 17form an integral part ofthefinancial statements

STRATEGIC PUBLIC SECTOR TRANSFORMATION PROJECTLOAN #8406-JM/ DFID GRANT #TFOA 1633-JMNOTES TO THE FINANCIAL STATEMENTSEIGHTEEN-MONTH ENDING MARCH 31, 2016

1. IDENTIFICATION

On September 3, 2014 the Government of Jamaica (GOJ) and the International Bank forReconstruction and Development (World Bank) signed loan agreement number 8406JM forUS$35,000,000, which became effective on October 27, 2014 and has an end date ofJanuary 31, 2020. Additionally, the World Bank acting as Administrators of grant fundsprovided by the Department for International Development (DFID) under the JamaicaStrengthening Public Investment Management System and Budget Processes Single DonorTrust Fund extended to the Government of Jamaica a grant. This DFID grant agreementnumber TFOA 1633 JM was approved on December 22, 2015, with an effective date ofJanuary 18, 2016 and an end date of September 30, 2016 for an amount of E1,062,907. TheUS$ equivalent of this original approved British Sterling amount is US$1,597,816.

Resources of these agreements are to fund the activities of the Strategic Public SectorTransformation Project, which is being implemented by the Ministry of Finance and PublicService, through the Project Implementation Unit.

The loan is repayable in equal semi-annual installments commencing February 2020 andending August 2043. Interest for the Word Bank loan is at a rate equal to the ReferenceRate for the loan currency plus the Fixed Spread and is guided by section 3.02(e) of theGeneral Conditions of the Agreement.

Project objectives

The Project Development Objective (PDO) is to strengthen public resource managementand support selected public sector institutions in facilitating a more enabling environmentfor private sector growth.

PROJECT COMPONENTS

The Strategic Public Sector Transformation Project consists of six (6) parts:

Part 1: Strengthening the Public Investment Management System

(a) Design and implementation of a Public Investment Management System("PIMS") through: (i) the development of an information technology platformwhich will provide information of public investment across the publicinvestment cycle and link said information to the Borrower's budget andfinancial systems; (ii) the migration of the Borrower's web-based database to thePIMS information system; and (iii) the carrying out of capacity building

9


activities to improve the Borrower's public investment and analytical capacity

for implementation of the PIMS.

(b) Design and implementation of a public investment management training

program for public sector employees through: (i) the design of the public

investment management training modules; (ii) training on public investment

preparation; (iii) training for project management; and (iv) training on public

investment monitoring.

(c) Reviewing legislation and carrying out dissemination activities to integrate thePIMS with the Borrower's administrative systems, including: (i) the Borrower'sprocurement system; and (ii) the Borrower's human resources system.

(d) Strengthening the monitoring of public investment through citizen participation,including the carrying out of: (i) external audits of projects; and (ii) publicinvestment performance surveys.

(e) (i) Designing a fund for the funding of pre-investment financial and economicanalysis and post-investment evaluations of the Borrower's public investments;and (ii) carrying out: (A) pre-investment financial and economic analysis of theBorrower's proposed public investments to identify priority public investmentsbased on the Borrower's long- term development agenda; and (B) post-investment evaluations of the effectiveness of the Borrower's completed publicinvestments.

(f) Provision of technical assistance for the implementation of the Public FinancialManagement Action Plan.

Part 2: Strengthening the Budget Preparation Process and Results-Based Budgeting

(a) Updating the Borrower's budget manual to include: (i) guidelines to align annualand medium-term budgeting; (ii) procedures for budget preparation and execution;and (iff) guidelines on the new budget preparation cycle.

(b) Institutionalizing baseline forward estimates in the Borrower's budget preparationprocess.

T'IKA'T!LUMjt t'Uout.% GdL.0L&% avru10r%J%stLULt Iu a.A.il

LOAN #8406-JM/ DFID GRANT #TFOA 1633-JMNOTES TO THE FINANCIAL STATEMENTSEIGHTEEN-MONTH ENDING MARCH 31, 2016

(c) Developing and implementing procedures to: (i) achieve better resource allocationthrough greater aligning of policy, planning and budgeting in MDAs; (ii) incorporateprocurement planning into the planning process and linking procurement plans tothe budget process; (iii) set medium-term expenditure ceilings for MDAs; (iv)improve alignment of recurrent budgets with public investment expenditures; and(v) carry out a review of human resources required by the Borrower's budget office.

(d) Provision of training on results-based budgeting to the Borrower's staff, selectedpursuant to the criteria set forth in the Operational Manual.

(e) Carrying out a review of the staffing levels in select MDAs to obtain accurateemployee numbers and compensation costs for on-going budget preparation andexecution.

(f) Establishment of a participatory budgeting process through the carrying out ofthematic meetings including citizens, NGO's, universities and businessrepresentatives.

Part 3: Adaptive Public Sector Approaches to Promote Fiscal Sustainabiity

(a) Supporting the Borrower's change management process to implement public sectorreforms on the public investment management system, the budget preparationprocess and results-based budgeting, property tax compliance and administration,and industrial growth and trade facilitation, all through the carrying out of activitiesselected following the procedures and criteria set forth in the Operational Manual,including:

(i) the carrying out of a consultation process within the Borrower's publicsector to assess the status of implementation of public sector reforms;

(ii) the improvement of the Borrower's communication and feedbackmechanisms to strengthen the interrelationships within the Borrower'spublic sector;

(ii) the identification and implementation of activities to support thesustainability of public sector reforms; and

(iv) (A) the identification and assessment of activities to address challenges inthe implementation of public sector reforms; and (B) based on saidassessment, the design and Implementation of a strategy to carry out saidactivities.

11


(b) Provision of technical assistance to the Borrower to address public sector reformimplementation gaps through the carrying out of activities selected following theprocedure and criteria set forth in the Operational Manual, including:

(i) the carrying out of an analysis of the Borrower's governance andaccountability framework;

(ii) the provision of support to assist the Borrower in achieving its public sectorreforms related to the Project including change management, as set forth inthe Operational Manual; and

(iii) the carrying out of an analysis of the Borrower's trade facilitation capacityand mechanism to streamline said process to enhance its efficiency andeffectiveness.

Part 4: Strengthening Property Tax Compliance and Administration

Provision of technical assistance to TAJ and NLA to improve property tax compliancethrough:

(a) the simplification of property tax payment procedures and expansion of propertytax payment channels in Selected Areas;

(b) the design and implementation of a strategy to collect property tax arrears andenforce property tax compliance;

(c) the improvement of the land parcel identification system, through the connection ofthe land parcel identification system with the TRN;

(d) updating the fiscal cadaster through the carrying out of field surveys on SelectedAreas to obtain additional relevant information on land characteristics; and

(e) upgrading the property tax management system through: (i) improving themanagement of property tax documents and records; and (ii) improving thecoordination between land valuation and land titling functions.

12


Part 5: Fostering Industrial Growth and Trade Facilitation

(a) Provision of technical assistance to BSJ through:

(i) the carrying out of a review of BSJ's testing and certification procedures to

ensure compliance with the Borrower's international and regional trade

agreements and standards, including the WTO TBT and the CROSQstandards; and

(ii) the carrying out of capacity building activities to improve BSJ's serviceorientation.

(b) Providing technical assistance to ICA, through:

(i) the design of a strategy to ensure coordination among Selected BorderAgencies concerning compliance with the WTO ATF, through: (1) integratingthe operational processes of Selected Border Agencies; (2) developing acommunication strategy to create awareness on said integrated processes;(3) carrying out training for JCA' s and the Selected Border Agenciesmanagement and staff on said integrated processes; and (4) developing aframework to simplify fees for import, export and transit operations; and

(ii) the strengthening of ICA's capacity to operate effectively and efficientlythrough: (1) the design of a strategy and provision of training for ICA'sgathering, analyzing and disseminating information on JCA's performance;(2) the design and implementation of a training program for ICA's new staffon, inter alia, tariff classification, valuation, search techniques and cargoinspection; (3) the review and improvement of ICA's corporate policies inhuman resources, finance and corporate services; and (4) the design of anICT governance framework.

Part 6: Project Management

Provision of support on Project management to: (i) carry out Project audits; (ii) complywith the financial management and procurement obligations under the Project; (iii)monitor and evaluate Project activities; (iv) provide training and the acquisition of goodsrequired thereof and finance Operating Costs.

13


MANAGEMENT REPORT

The Annual Report is submitted by management for the Strategic Public Sector

Transformation Project (SPSTP) for the period October 27, 2014 to year ended March 31,

2016.

AUDITING OF THE PROJECT

The Project is currently audited by the Auditor General's Department

The Auditors,Auditor General's Department,40 Knutsford Boulevard,Kingston 5,Jamaica.

1. The Budget

This is the amount allocated based on the Loan Agreement.

2. Categories of Expenditures

The Project was designed with one category covering Goods, consultants' services, Trainingand Operating Costs with an allocated amount of US$34,912,500. One hundred percent ofeligible expenditures falling within this category is financeable by the World Bank loan.

The eligible parts of the Components as per the loan agreement are: Parts 1(a),1(b)(iii),1(b)(iv), 1(d)(i),1(e)(ii), 2 (c)(i), 2 (c)(ii), 2(d), 2(e), 3, 4, 5 and 6 of the Project.

In addition to this category an amount of US$87,500 is allocated for Front-end Fee.

The DFID grant supports the parts of the components 1 and 2 not eligible under the Loan.The eligible parts of the Components are: Parts 1(b)(i), 1(b)(ii), 1(c), 1(d)(ii), 1(e)(i), 1(f),2(a), 2(b), 2(c)(iii), 2(c)(iv), 2 (c)(v), 2(f) of the Project.

Except where otherwise stated, these financial statements are presented in United StatesDollars (US$) and includes only cash receipts and payments of the Strategic Public SectorTransformation Project. The Project has separate Designated Special Accounts for the Loanand the Grant resources which are maintained at the Bank of Jamaica.

14


3. Significant Accounting Policies

The principal accounting policies applied in the preparation of these financial statements

are set out below. These policies have been consistently applied to during the eighteen-month period.

1) Basis of Preparation

The Project Implementing Unit (PIU) uses the cash basis of accounting to account

for the project's transactions. Under this basis, income is recognized when funds are

received rather than when requested and expenses are recognized when payment is

made rather than when obligations are incurred. Since the main objective of these

financial statements is to disclose the sources and uses of funds, it is not necessary

to present information adjusted for inflation.

II) Recording of Transactions

Transactions are recorded in dual currency. As the loan is denominated in US

dollars, for preparation of the financial statements, US dollar is used. Expenditure

in local currency are translated into US dollars, by applying the Central bank rate

on the day of the expenditure.

The Guidelines and Terms of Reference stipulates that the project financial

statements should include separate identification of revenues and expenditures

from the bank.

III) Fluctuation rate and fees

All fees and charges for un-disbursed loan funds, as well as losses due to exchange

rate fluctuations are not considered eligible project costs and are absorbed by the

Government of Jamaica. Bank charges are defined in the 'Operating Expenditures"

of the project and are an approved expenditure to the loan once deemed

reasonable.

IV) Equipment and other fixed assets

Equipment and other fixed assets procured with project resources are recorded at

their acquisition cost at the date of purchase. Depreciation is not charged on these

assets and is also not reflected in these financial statements.

15


3. Significant Accounting Policies (cont'd)

IV) Exchange Rate for the period

Foreign exchange gains or losses arise as a result of the fluctuations of the

Jamaican Dollar against United States Dollar. There were no foreign exchange

gains or losses as the Project only maintains United States Currency bank

accounts. The Special Account for the World Bank Loan and DIFD Grant are

maintained at the Central Bank, bearing account numbers 810150 and 810290

respectively.

4. Disbursement methods

Disbursement Request Disbursement World Bank Amount DFID AmountDate Number US$ US$

February 3, 2015 1B 162,500March 31, 2015 1A 421,000

May 26,2015 2 14,742May 28,2015 3 423,566September 30, 2015 4 809,785Total 1,410,593 421,000

This represents the total advances issued by the IBRD for the period ending March 31, 2016.

The undisbursed balance of the world bank loan as at March 31, 2016 is US$33,501,907.

5. Source of Funds

A) World Bank

The amount of USD 1.498 Million (cumulatively USD 1.498 Million) was received fromthe World Bank for the period under review, this amount is inclusive of front-end fee (USD0.0875 Million) charged by the Bank.

B) DFID Grant

The amount of USD 0.421 Million (cumulatively USD 0.421 Million) was received fromthe World Bank - DFID Grant for the period under review.

6. Use of Loan Funding

Total funds invested during the period amounts to approximately USD1.230 Million(cumulatively USD 1.230 Million).

16STRATEGIC PUBLIC SECTOR TRANSFORMATION PROJECTLOAN #8406-JM/ DFID GRANT #TFOA 1633-JMNOTES TO THE FINANCIAL STATEMENTSEIGHTEEN-MONTH ENDING MARCH 31, 2016

7. Cash availability as at March 31, 2016

The cash available as at March 31, 2016, as expressed in US dollars is:

Bank Accounts Total Cash AvailableUS$

Special Account 1 268,163Special Account 2 421,000Total Closing Balances 689,163

This represents the cash balances at the end of the period for the Special Bank Account Number

(IBRD Loan) 810150 and Special Bank Account Number (DFID Grant) 810290. These Special

Accounts are operated by the Bank of Jamaica for the disbursement of loan funds. Funds

disbursed by the World Bank for the Project is directly transferred to this account.

8. Expenditures pending Justification

The information below represents the SOEs pending submission to the World Bank todocument expenditure incurred from special account #810150 during the period of theaudit:

SOE Application Documented ExpenditureNumber US$6 231,705.407 417,626.33

TOTAL 649,331.73

9. Non-Current Assets

The total non-current assets at March 31, 2016 was US$318,562. See details in tables

below.

(a) Property, Plant and Equipment

Furniture and Office Computer TOTALEquipment Equipment Equipment US$

US$ US$ US$

CumulativeCumulative Balanceat March 31, 2016 13,405 156,975 33,156 203,536

17


9. Non-Current Assets (cont'd)

(b) Intangible Assets

Computer Software TOTALUS$ US$

Cumulative __ _

Cumulative Balanceat March 31, 2016 115,026 115,026

10. Subsequent Event

The Project commenced a restructuring exercise in June 2015, which was presented to theSteering Committee on July 28, 2015. The restructuring exercise is being done inconsultation with various stakeholders including the World Bank team through severalmission visits. The restructuring will eliminate Components 4 and 5b, activities for whichother donors support fulfill.

Documents

AUDITOR GENERAL'S DEPARTMENT - World Bankdocuments.worldbank.org/.../pdf/Ja-SPSTP-Audit-Rept-P146688-FY-Sept-2016.pdfStatement of Cummulative Investments -Amounts in US$ For the period