TELEPHONE: 27751 P.O. Box 13FAX: 24167 APIA, SAMOAEMAIL: info@audit.gov.wsWebsite: www.audit.gov.ws

Please address alt correspondencesto the Controller and Auditor General

AUDIT OFFICE

24 December 2015

Lavea Tupa'imatuna lulai LaveaChief Executive OfficerMinistry of FinanceCentral Bank BuildingAPIA

SAMOA AVIATION INVESTMENT PROJECTSIGNED AUDIT OPINION AND AUDITED FINANCIAL STATEMENTS ANDMANAGEMENT LETTER REPORTFOR THE PERIOD 1sT JULY 2013 TO 3 0TH JUNE 2015.

Please find enclosed is the signed audit opinion and one set of the audited financialstatements for the Samoa Aviation Investment Project for the period 1 July 2013 to 30 June2015. Also included is the signed management letter report. The invoice for the audit for thesame period will be sent later on.

We would like to thank your good self and staff for your cooperation and assistance.

Should you have any further queries please do not hesitate to contact me on 277-51

Ma lo'u fa'aaloalo lava,

uim no Papai'i Camillo AfeleCONTROLLER AND AUIDITOR-GENERAL

SAMOA AVIATION INVESTMENT PROJECT(SAIP)

FINANCIAL STATEMENTS

FOR THE PERIOD 01 JULY 2013 TO 30 JUNE 2015

SAMOA AVIATION INVESTMENT PROJECTFINANCIAL STATEMENTSFOR THE PERIOD 01 JULY 2013 TO 30 JUNE 2015

CONTENTS Page(s)

1. Report of the Auditor 1

2. Certification by lanaaement 2

3. Statemwnt of Receipts and Paymenls 3

5. Notes to the Financial Statements 4-7

TELEPHONE: 27751 P.O- Box 13FAX: 24167 APIA, SAMOAEMAIL: info@audit.gov.wsWebsite: www.audit.gov.ws .

Please address all correspondencesto the Controller and Auditor General

AUDIT OFFICE

REPORT OF THE AUDIT OFFICE

TO THE MINISTRY OF FINANCE - GOVERNMENT OF SAMOAWe have audited the accompanying Project Financial Statements for the Samoa Aviation Investment

Project with explanatory notes for the period 1" July 2013 to 30' June 2015.

Mlanagement's Responsibility for the Financial StatementsThe preparations of the Project Financial Statements are the responsibility of the Implementing Agency.

Samoa Airport Authority, the Samoa Aviation Investment Project Team and the Ministry of Finance,

which is the executing agency. The Implementing and Executing Agencies policies are to prepare these

financial acquittal reports in accordance with the requirements of the Donors - World Bank, on the cash

receipts and disbursement basis.

Auditor's ResponsibilityOur responsibility is to express an opinion on the accompanying Project Financial Statements based on

our audit.

We conducted our audit in accordance with International Standards on Auditing. These standards require

that we plan and perform the audit to obtain reasonable assurance about whether the Project Financial

Statements are free from material misstatement and expenditures comply with the examination of the

evidence supporting the amounts and disclosures in the Project Financial Statements. We believe that our

audit provides a reasonable basis for our opinion.

OpinionIn our opinion. the accompanying Project Financial Statements present fairly. in all material respects, the

funds received and the expenditure paid by the Implementing Agency during the period 01 July 2013 to

30 June 2015, in accordance with the requirements of the Donor. World Bank.

24 December 2015 FuimaonoPapali'i Camillo AfeleApia, Samoa CONTROLLER AND AUDITOR-GENERAL

SAMOA AVIATION INVESTMENT PROJECTCERTIFICATION BY PROJECT'S MANAGEMENTFOR TIl EPERIOD 01 JULY 2013 TO 30 JUNE 2015

We certify that the anached financial siatemerls for the Samoa Aviation Investmenii ProJet (SAIP) comprisig of

the Stalenent of Receipts and Paynenis and notes ormning pat ofthe funancial statements for the period from 01 Juty 2013

to 30 June 2015 (24 Months)

a) give a tec and fair vies of the matters to 5hich they relaie, and

b) have been properlv drawn up in accordance with the accounting poc, deseribed in Note 2 to the financial statements

We are not aware of anY circumstances vhiich would render anY particulas ineluded in the financial statements to be

misleading or inaccuraie.

Wc aulhorise the altached financial statemenis for issuc on ./ .Z.. n behalfof, the Minagenent el

the SaIoa Aviation Investment 'roject

Sign ture4W1,ru

Lavea Tupa'iynazua Mi Lara Magrle lToe Vial(

CHIEF EXECUTIVk OFFICER GENERAL NLANAGER

Miistf) of Fance Samnn Airport Authorily

Apia, Samoa Apia Samoa

Page 2

SAMOA AVIATION INVESTMENT PROJECTSTATEMENT OF RECEIPTS AND PAYMENTSFOR THE PERIOD 01 JULY 2013 TO 30 JUNE 2015

Notes 30 JUNE

2015(24 Months)

SRECEIPTS(iants S 907.805

Total Receipts 907,805

PAYMENTS

Programme Activities ExpenditureComponent A: Aviation infrastructure Investments 6 74.642Component 13: Aviation Sector Reform and Training 6 10.372Component C: Strengthening Airport Operations and Management Capacity -Component D: Project Implementation Support 6 446,262

Total Samoa Aviation Investment Project Activities Expenditure 622,276

Total Payments 622,276

Increase/(Decrease) in Cash 285,528

Cash at Beginnitg of Period -

Cash at End of Period 4 285.528

This statement ofreceipts and paymnts mst hr read in conunction with the accompatning notes.

SAMOA AVIATION INVESTMENT PROJECTNOTES TO THE FINANCIAL STATEMENTSFOR THE PERIOD 01 JULY 2013 TO 30 JUNE 2015

. GENERAL INFORMATION

The Goverment of Samoa through the Implementing Agency -- Samoa Airport Authority (SAA), has received a sTant foassistance from the International Development Association under the Pacific Aviation Investment Project (PAIP)

The PAIP Program is a regional aviation project wsith the development objective to provide sale and secure air transportoperations and environmentally sustainable and efficient airports.

The Samoa Aviation Investment Project Financing agreement was officially signed on the 8th May 2014 but preparatory

expenditures were incurred since October of 2013. the value of the Grant in SDR is 16.300M000.00 which equated toUSD25M at the time of signing. In addition to the IDA grant is aI JSD 300.000 grant from the Pacific Region InfrastructoreFacility (PRIF) signed and dated on the same date.

SAIP is implemented under the overall guidance. coordination and monitoring of the National Steering Committee. and theProgram Steering Conunitice as part of the regional program of aviation investments (which currently includes Tonga.TuvalO. Kiribati. Samoa and Vanuatu). SAW is supported by the Technical and Fiduciary Services Unit (TFSt J): based inTonga, and also tasked to support the revional program. with cost sharing arrangements agreed as per the ProgramOperations Manual (POM).

A Special Purpose Account for the SAIP was established and is governed by the Financing Agreement and is known as

the Samoa Aviation Investment Project Account. The purpose of the SAIP Account is to disburse funds for Project

activities. the SAIP is to be implemented in accordance with the principles, structures and responsibilities set out in the

Financing A greement.

2. SUMMARY OF ACCOUNTING POLICIES

2.1 BASIS OF PREPARATION

The financial statements of the Samoa Aviation Investuent Project (SAJP) has been prepared in accordance ivith the

modified cash basis of accounting. Expenses are recognised when they are paid and Revenue is recogmised when it is

received Therefore. there is no recording of accounts payable as there is no accruing of liabilities. Moreover. SAlPmakes payments once approval and supporting documents are received from the Suppliers. ITie SAIP does purchaseassets which are currently under their ownership The accounting policies have been applied consistently throughout the

period.

2.2 FUNCTIONAL AND PRESENTATION CURRENCY

T he financial statements are preselned in I iS Dollars (t S$). which is the SAP Account's functional currency andall values presented in US Dollars have been rounded to the nearest dollar. Transactions in currencies other than 1JSI)

are translated into 1USD using the actual exchange rate applied by the Central Bank of Samoa (where the transaction arepaid fron the Designated Accounts) or at the applicable rate (where the transactions are paid directly by WB)

2.3 CASH

Cash in the balance sheet comprise of cash at bank only.

2.4 RECEIPTSGrams are received from the World ltank. llhc amount is based on a request from Government of Sanou through the

Ministry of Finance (MOF) for approval and transfer front the World Bank. Both MOf & SAIP have access to

Client Connection, the website that is used to manage grant funds and to check on the financial status.

Paec 4

SAMOA AVIATION INVESTMENT PROJECTNOTES TO THE FINANCIAL STATEMENTSFOR THE PERIOD 01 JULY 2013 TO 30 JUNE 2015

2.5 PAYMENTSPayments relate to all expenditure payments made to suppliers for goods and services relating to the SAIP. Paymentsare approved by the General Manager for Samoa Airport Authority and are subsequently paid by the Ministry of Financein accordance with the Program Operational Manual (POM). Payments are also paid for by the Samoa Airport Authorityand reimbursed from the CBS account monitored by MOV. Payments are made in line with the Project Aeententsbetween the Government of Samoa, the Technical & Fiduciary Services tI Tnit (TFSt) and the World Bank Any variationto the Project Agreement would be submitted by SAIP to MOF for consideration.

3. FINANCIAL PERIOD

the financial statements for the Samoa Aviation Investment Project for 30 June 2015 are for a twenty four month

period from Ist July 2013 to 30th June 2015. There are no comparatives as this will be the first financial report.

30 JUN4. CASH AT BANK 201.5

SSamoa Aviation Investment ProjectCBS IISD - account number 06-078 285,528

285,528

5. GRANTS 30 JUNE2015

S

Grants from World Bank/IIDA 808,785Grants from World Bank/PRIF 99.020Total 907,805

Page 5

SAMOA AVIATION INVESTMENT PROJECTNOTES TO THE FINANCIAL STATEMENTSFOR THE PERIOD 01 JULY 2013 TO 30 JUNE 2015

6. COMPARISON OF BUDGET AND ACTUAL EXPENDIT1REJS TO DATE BY PROGRAMME ACIVITY

Actual Accumulated Approved Budget30 JNE 2015 (24 Months) Expenditures Expenditures Activity Remaing/

to Date Budget (Overspent)Component A: Aviation Infrastructure Investments S S S 5

A05 - Air Traffic Control Equipment - 470,000 470,000A07 - Inproved Power Supply - 1,270.000 1.270.000A 13 - Airfield lighting and cabling - 600,000 600U000A03 - Automatic dependent surveilLancc-broadcast (ADS-B) - - 400000 4,000A06. i - VSAT Installation of Hardware - 120,000 120,000A06.2 - VSAT Management Contract & Deign of Specificaions - - 80,000 80,000AU8 - Fire Tender Vehicle (Samoa) - - 920,000 920.000A09 - Fire Safety EqUipmen for Fire Crews (Samoa) 14.387 14,387 100.000 85.613Al4 I - D)esign and Supervision - Runway 60.255 60,255 500.000 439.745A14.2 - Design and Supervision - Other key In1esUnenits - 850,000 850,000Al5.4 - Resurface Runwa'y, Apron and Taxiwav (SA) - 12,060,000 12,060,000Al9 - Maintenance Fquipment Building - 150,000 150,000A3 1 - Water Tanks (2 x 100,000L) - 100.000 100100

A32 - CCTV 50.000 50.000

74.642 74,642 17,670,000 17,595,358

Component B: Aviation Sector Reform and Training

1303 - Samoa National Aviation Strategv - 10K.000 300000

B05 - PASO Safety and Security Oversight 99,020 99020 300,000 200.980

B06 - Support CAA'a and Tine Ministries - - 325.000 325.000

B08 - Training (CAD1 2,3 5 2 2.352 250.000 247,648

101,372 101,372 1,175,000 1,073,628

Component C: Strengthening Airport Operations and Management Capacit-

C06 - Asset Management System (ASM)* - 500,000 500.000

C07 - SAA Strategy and Buitness PMlan - 100.000 300000

C08 - Traudng Needs Analysis (TNA) for SAA aid CAA - 100.000 100,000

C09 - Training (SAA) - 250.000 250,000

- 1,150,000 1,150,000

Component D: Project Implementation Support

D24 - VSAT Arual Subscription -- 25000 25.000

1)25 - Country Project Operaling Costs (Total budgetary allocation) 34.838 34,838 250,000 215,162

Samoa Staff Budget - - 500,000 500.000

Samoa Project Preparation Fund 160,783 160.79 100000 (60.783)

TFSU Staff Budget & Operational Cosis 250642 250.642 1.538,100 1297-458

446,262 446,262 2,413,100 1,966,838

Total of World Bank Funded Activities 622.276 622,276 22A08,100 2 L785,824

Shortfall to be sourced (refer note 10) - - 8.040000 8.040,000

Total for SAIP 622,276 622,276 30,448,100 29,825,824ueden'

SAMOA AVIATION INVESTMENT PROJECTNOTES TO THE FINANCIAL STATEMENTSFOR THE PERIOD 01 JULY 2013 TO 30 JUNE 2015

ADDITIONAL DISCLOSURES

7. PAYMENTS MADE BV SAMOA AIRPORT AUTHORITY (SAA)30 JUNE 2015

WSTPamenes made by SAA on behalf ofSAI'P which are being assessed ifeligible for reimbursement 216,379.54

8. FACILITY AVAILABLE

Grants in historical fiLures includin. available balances as at 30 JUNTE 2015:

RemainingSigned Amount Disbursed Balance

HMA (ran SDR 16.300,000 SDR 568.613 SDR 15,731,387PRIb Grant UISD 300.000 111SD 99,020 USD 200,980

9. PROPERT!Y, PLAN! AND EQUIPMENT

Property plant and equipment items are stated at cost.

Additions ClosingOpening SD USD Disposals USD USD

Volor VChicie - 34,255 - 34255- 34,255 - 34,255

10. SUBSEQUENT EVENT

After the financial vear end, the shortfall of approximately USDS,040.000.00 which was to hefinanced through a loan with the European Investment Bank (FTB) has now been cancelled.A concessional loan is now to be requested from the World Bank to financ" the shortfall.

Page 7