kulhudhuffushi harbour expansion projectaudit.gov.mv/uploads/auditreports/2019/06june/kulhudhuffushi...

KULHUDHUFFUSHI HARBOUR EXPANSION

PROJECT

MINISTRY OF NATIONAL PLANNING AND INFRASTRUCTURE

FINANCIAL YEAR 2018

Report No: FIN-2019-42(E) 23rd June 2019

Contents

Auditor General's Report

Financial Statement

Statement of Receipts and Payments 3

Statement of Comparison of Bu{get and Actua1s............. ........... 4

Notes to the Financial Statements............ ..... 5

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Opinion

We have audited the accompanying financial statement; Statement of Receipts and Payments and

Statement of Comparison of Budget with Actual Amounts for the year ended 3 1 December 201 8

and notes to these statements, which includes a summary of significant accounting policies and

other explanatory information set out in pages 3 to 8, of Kulhudhuffushi Harbor ExpansionProject financed by Asian Development Bank Grant Agreement (Grant No. 0489-MLD(SF)) as

of 5th October 2016.

In our opinion, the accompanying financial statements present fairly, in all material respects, the

cash receipts and cash payments for the financial year ended 31 December 201 8 and cash balances

as at the year then ended in accordance with International Public Sector Accounting Standard:

Financial Reporting under the Cash Basis of Accounting.

In addition, we can provide assurance that:

(a) A11 funds, including counterpart funds, of the project have been utilised in accordance

with the conditions of the grant agreement, with due regard to economy, efficiency and

only for the purposes for which the funds were provided;

(b) The Ministry of National Planning and Infrastructure (Project Management Unit) were in

compliance with all financial covenants of the grant agreement as at 3l't December 2018;

(c) Adequate supporting documentation has been maintained to support claims to the AsianDevelopment Bank for reimbursement of expenditures incurred and expenditures are

eligible for financing under the grant agreement; and

(d) The Imprest Account gives a true and fair view of the receipts collected and payments

made during the year ended 3 l't December 201 8.

Basis for opinion

We conducted our audit in accordance with Intemational Standards on Auditing (lSAs). Our

responsibilities under those standards are further described in the Auditor's responsibilities forthe audit of the financial statements section of our report. We are independent of the Management

in accordance with the Intemational Ethics Standards Board for Accountants' Code of Ethics forProfessional Accountants (IESBA Code). We have fulfilled our other ethical responsibilities in

accordance with the IESB Code.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a

basis for our opinion.,rr,tl

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Maldives

Responsibilities of management and those charged with governance for the financialstatements

The Management is responsible for the preparation and fair presentation of this financialstatement in accordance with International Public Sector Accounting Standard (IPSAS):

Financial Reporting under the Cash Basis of Accounting. This responsibility includes: designing,

implementing and maintaining internal controls relevant to the preparation and fair presentation

of financial statement that are free from material misstatement, whether due to fraud or effor;selecting and applying appropriate accounting policies; and making accounting estimates that are

reasonable in the circumstances.

Those charged with governance are responsible for overseeing the project's financial reportingprocess.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a

whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's

report that includes our 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 the aggregate, they could reasonably be expected to influence the

economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with ISAs, we exercise professional judgment and maintain

professional scepticism throughout the audit. We also:

. Identify and assess the risks of material misstatement of the financial statements, whether due

to fraud or effor, design and perform audit procedures responsive to those risks, and obtain

audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk ofnot 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.

. Obtain an understanding of internal control 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 the project's internal control.

. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting

estimates and related disclosures made by management.

. Evaluate the overall presentation, structure and content of the financial statements, including

the disclosures, and whether the financial statements represent the underlying transactions and

events in a manner that achieves fair presentation.

We communicate with those charged with governance of the project regarding, among other

matters, the planned scope and timing of the audit and significant audit findings, including any

significant deficiencies in internal control that we identify during our audit.

?

Hassan ZiyathAuditor General

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20th June 2019

KULHUDHUFFUSHI HARBOUR EXPANSION PROJECT

MINISTRY OF NATIONAL PLANNING AND TNFRASTRUCTURE

FOR THE PERIOD 1 JANUARY 2018 TO 31 DECEMBER 2018

STATEMENT OF RECEIPTS AND PAYMENTSFOR THE PERIOD 1 JANUARY 2018 TO 31 DECEMBER 2OI8

All thefigures are in US Dollars

For the period

1 Jan 2018 to 31 Dec 2018

For the period

1 Jan 2017 to 31 Dec 2017

Notes DirectPaymentsby ADB

DirectPaymentsby ADB

CashReceipts

/(Payments)Controlled

by the entity

CashReceipts

/(Payments)Controlled

by the entity

Cumulativeas at 31 Dec

2018

RECEIPTSFunds Received

Asian DevelopmentBankGovernment ofMaldives

Total Receipts

PAYMENTSCivil Works

Consulting Service

Recurrent Costs

Total Payments

Increase/(Decrease) incash

Opening cash balance

Increase/(Decrease) in cash

Closing cash balance

3.1

3.2

(usD) (usD) (usD) (usD) (usD)

73,104 1,177,677 38,955 236,0221,519,698

83,06950,981 32,088

124,085 l,17l,617 71,043 236,022 1,602,767

4.1

4.2

4.3

(26,584)

(101,948)

(7,077,728)

(93,889) (2,004) (236,022)

(59,460)

(1,077,728)

(358,499)

(161,408)

(128,532) (t,171,617) (61,464) (236,022) (1,597,635)

(4,447) 9,579

91579

(4,447) 9,579

5,132 9,579

Management of the Project is responsible for the preparation and presentation of the financialstatement.

The Financial Statement of the Project was approved by the Project Management Unit (PMU)on 20th June 2019.Signed for and on behalf of the PMU:

A!,rW (

Mr. Abdul Wahhab Ms. Nizar

(Project Accountant) (Project Director)

policies and notes on pages 5 through 8 form an integral part of the financial

of National Planning and lnfnastructure, Ameenee Magu, Male', 20392, Maldives, Tel: +960 300 4 300, Fax: +960 300 4 30'1,

secretariate@planninq,oov, mv

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MTNISTRY OF NATIONAL PLANNING AND INFRASTRUCTURE

FOR THE PERIOD 1 JAI\UARY 2018 TO 31 DECEMBER 2018

STATEMENT OF COMPARISON OF BUDGET AND ACTUAL AMOUNTS

FOR THE PERIOD 1 JANUARY 2018 TO 31 DECEMBER 20 I 8

All thefigures are in US Dollars

For the period1 Jan 2018 to 31 Dec 2018

ltem NotesBudgetedAmount

ActualAmount Difference

Civil works

Consulting service

Recurrent Costs

Total

4.1

4.2

4.3

(usD)

2,840,000

290,000

60,000

(usD)

(1,077,728)

(120,473)

(101,948)

(usD)

1,762,272

169,527

(41,948)

3,190,000 (1,300,149) 1,889,851

The accounting policies and notes on pages 5 through 8 form an integral part of the financialstatements

of National Planning and lnfrastructure, Ameenee Magu, Male', 20392, Maldives, Tel: +960 300 4

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300, Fax: +960 300 4 30'1,

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MINISTRY OF NATIONAL PLANNING AND INFRASTRUCTUREFOR THE PERIOD 1 JAI\UARY 2018 TO 31 DECEMBER 2018

I{OTES TO THE FINANCIAL STATEMENT

1 PROJECT INFORMATTON

I.1 Key Highlights

Project Title:

Start Date:

Closing Date:

Approved Budget:

Funded by:Maldives (GOM)

ADB Contribution:

GOM Contribution:

Kulhudhuffushi Harbor Expansion Project

01't March2017

31st December 2019

usD 10,440,000

Asian Development Bank (ADB) and the Government of

usD 9,690,000

usD 750,000

1.2 ObjectivesProj ect Development Obj ectivesThe Kulhuduffushi Harbor Expansion Project aims at enhancing access to services in thenorthern region of the Maldives, by improving inter-island connectivity. The project willconstruct a passenger and cargo harbor on Kulhudhuffushi Island, which will be an

expansion to the existing multi-purpose harbor.

1.3 Impact and Outcome

The impact of the project will be enhanced access to' services, aligned with the

Government's Seventh National Development Plan. The outcome will be improved inter-island connectivity in the northern region.

The outputs of the project will be (i) increased harbour passenger and cargo capacity inKulhudhuffirshi, through expansion of the existing multi-purpose harbour, and (ii)strengthened institutional capacity in harbour operation, maintenance, safety and financialmanagement.

2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

2.1 Basis of Preptration

The financial statements are prepared in accordance with International Public Sector

Accounting Standard (IPSAS): Financial Reporting under the Cash-Basis of Accounting,issued by Public Sector Committee of the International Federation of Accountants.

The financial statement comprises:

policies

Recognition of Receipts and Payments

and payments are accounted for on cash basis. Receipts are recognised when the

s Monetary Authority (MMA) receives the funds from ADB to the bank acco

for the project with it. This account is maintained in United States Dol

of National Planning and lnfrastructure, Ameenee Magu, Male', 20392, Maldives, Tel: +960 300 4 300, Fax: +960 300 4 301,

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(USD). Payments are recognised at the time of outflow of cash either from the bank account,or from the cash account maintained for cash payments. Financial contributions to theproject from Government of Maldives are recognised when cash outflow occurs from the

Public Bank Account (PBA) in respect of the project. Such outflows (payments) are also

recognised as receipts in the financial statements.

2.3 Third Party Payments

Payments made to vendors directly by the ADB on behalf of the Project are recognised and

included within the receipts (disbursements) of the project,' whilst such figures are also

recognised as payments under appropriate heads in the financial statements.

2.3 Presentation Currency

The Statement of Receipts and Payments has been presented using the United States Dollars(USD). All the figures have been rounded to the nearest Dollar.

2.4 Foreign Currency Translation

Receipts and Payments in currencies other than the reporting currency (USD) are converted

at USD 1 : MVR 15.42, which is the exchange rate between the transaction currency and

USD at the time of the transaction. Cash balances in currencies other than USD as at the

end of the reporting period are shown in the financial statements at the exchange rate that

was prevailing at the last day of the reporting period and resulting exchange gairVloss (ifany) is recognised in the financial statements.

2.5 Reporting Period

Financial statement is generally prepared for one year (calendar year). Period for whichfinancial statements is prepared are disclosed on the face of the financial statements.

2.6 comparativesIn addition to the figures for the financial year ending 3 1 December 2018, the financialstatement shows the figures for the financial year ended 3l December 2017 .

3 FUNDS RECEIVED

3.1 Funds Received from ADB

2018 2017

Details


CashReceipts/

(Payments)Controlled by

the entity


CashReceiptV

(Payments)Controlled

by the entity(usD) (usD) (usD) (usD)

Advance payment to the ProjectManagement Consultant (PMC) - 19 June

2017Funds received to Advance accountPMC April 2017 payment - 18 August2017PMC May 2017 payment - 18 October

112,311

73,104

72,779

46,954

9,1022017 payment - 18 October

of National Planning and lnfnastructure, Ameenee Magu, Male', 20392, Maldives, Tel: +960 300 4

secretariate(O plan n i nq.qov, mv

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300, Fax: +960 300 4 301,

38,955



FOR THE PERIOD 1 JAIIUARY 2018 TO 31 DECEMBER 2018

PMC July 2017 payment - 18 October 2017PMC August 2017 payment - 3 1 May 2018PMC September 2017 payment - 31 May2018PMC December 2017 payment - 31 May201 8

PMC January 2018 payment - 3 1 May2018PMC February 2018 payment - 3l May2018PMC March 2018 payment - 3 1 May 201 8

Advance payment to the Contractor -24December 2018

54,8762,7 48

44,403

3,667

1,312

889

40,876

1,077,728

Total lrl7l1617

3.2 Funds Received from Government of Maldives

73,104 236,022 38,955

2018 2017

Details

Cash Receipts/(Payments)

Controlled bythe entity

Cash Receipts/(Payments)

Controlled by theentitv

(usD) (usD)

Fixed Assets

Travelling

PMU Staff Salary & allowances

PMU Staff pension Contribution

PMC Payment

Repair and maintenance

EIA extension

Meeting, seminars and trainings

Postage

Total

4 PAYMENTS

4.1 Civil Works

2,687

2,940

10,920

26,584

163

6,356

7,285

46

4,961

4,763

76,877

1,820

2,004

2,278

45

50,981 32,088

2018 2017

Details

Receipts/(payments)

Controlled bythe entity

DirectPaymentsBy ADB

Receipts/(payments)Controlled

DirectPaymentsBy ADB

by the entity(usD) (usD)

(1,077,728)

(usD) (usD)

Advance payment to the project Contractor

"r'ii

-6f il

(1,077,728)

of National Planning and lnfnastructure, Ameenee Magu, Male', 20392, Maldives, Tel: +960 300 4 300, Fax: +960 300 4 301,

secretariate(Oolanning.qov. mv

7

KULHUDHUF'F'USHI HARBOUR EXPANSION PROJECT

MINISTRY OF NATIONAL PLANNING AND INF'RASTRUCTURE

FOR THE PERIOD 1 JAI\UARY 2018 TO 31 DECEMBER 2018

4.2 Cansulting Services

2018 2017

Details


by the entity

GOM Fund



by the entity

GOM Fund

Direct'Paymentsby ADB

Advance payment to the Project

Management Consultant (PMC)

PMC April 2017 payment

PMC l|u4ay 2017 payment

PMC June 2017 payment

PMC July 2017 payment

PMC payments

PMC August 2017 payment

PMC September 2017 payment

PMC December 2017 payment

PMC January 2018 payment

PMC February 2018 payment

PMC March 2018 payment

Total

4,3 Recurrent Costs

(usD) (usD) (usD) (usD)

(112,311)

(12,779)

(54,876)

(9,t02)

(46,954)

(26,584)

(2,748)

(44,403)

(3,661)

(1,312)

(88e)

(40,876)

(26,584) (93,889) (2,004) (236,022)

2018 2017

(2,004)

Receipts/ (Payments)Controlled by the entity

Receipts/ (Payments)Controlled by the entitv

Details GOMFund

ADBFund

GOMFund

ADBFund

Fixed Assets

Travelling

PMU Staff Salary

PMU Staff pension Contribution

Repair and maintenance

Postage

Meeting, seminars and trainings

EIA extension

(usD)

(2,687)

(2,940)

(10,920)

(163)

(1,285)

(6,356)

(46)

(usD)

(6,989)

(70,562)

(usD)

(4,961)

(4,163)

(t6,877)

(1,820)

(2,2t8)

(4s)

(usD)

(29,37 6)

Q4,397) (77,551) (30,084) (29

of National Planning and lnfrastructure, Ameenee Magu, Male', 20392, Maldives, Tel: €60 300 4 300, Fax: +960 300 4 301,

secretariate(O olan ni nq,qov, mv

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OTHER II\FORMATIOI\The following information has been provided as additional information. They do not form partof the above financial statement that has been presented under IPSAS cash basis of accounting.

Fixed Assets (at cost)

DetailsBalance as at 1

January 2018Additions/Transfers Balance as at 31

December 2018

(usD) (usD) (usD)

Office Tables

Office Chairs

Computer systems

Total

7,289

L,114

2,558 6,989

7,289

1,174

9,547

41961 6,989 11,950

PayablesDetails As at 31 Dec

2018As at 31 Dec2017

Employer Pension contribution payable to MPAO for the monthsApril 2017 to August 2017Employee pension contribution payable to MPAO for the monthsApril 2017 to August 2017PMC Payments (GOM contribution)

Total

(usD) (usD)

1,479

1,479

1,479

1,479

13,193

2,958 16,151

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Ministry of National Planning and lnfnastructure, Ameenee Magu, Male', 20392, Maldives, Tel: +960 300 4 300, Fax:

secretariate@plan ninq.qov. mv

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€60 300 4 301, email:

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