World Bank Documentdocuments.worldbank.org/curated/en/... · 6/30/2015 · Auditor's report Designated account Independent auditor's report ... US$37.1 million equivalent from Royal

WORLD BANK REC&\VED

2016 -03- 1 4

' MALA WI COUNTRY

OFFICE

MINISTRY OF AGRICULTURE, IRRIGATION AND WATER DEVELOPMENT

AGRICULTURAL SECTOR WIDE APPROACHSUPPORT PROJECT- MDTF

GRANT AGREEMENT NO TF 016364

RECEIPTS AND PAYMENTS STATEMENT

FOR THE 13 MONTHS PERIOD ENDED

30 JUNE 2015

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MINISTRY OF AGRICULTURE, IRRIGATION AND WATER DEVELOPMENT AGRICULTURAL SECTOR WIDE APPROACH- SUPPORT PROJECT- MDTF

GRANT AGREEMENT NO. TF 016364

RECEIPTS AND PAYMENTS STATEMENT FOR THE 13 MONTHS PERIOD ENDED 30 JUNE 2015

CONTENTS

Statement of management responsibilities

Audit summary

Receipts and payments statement

[ndependent auditor's report

Receipts and payments statement- by Component

Statement of financial position

Accounting Policies and notes

Internal controls

Auditors report

Compliance with agreement terms

Auditor's report

Designated account

Independent auditor's report

Appendices

Receipts and payments statement by category

Statement of expenditure

Summary of World Bank disbursements

List assets

Bank reconciliation - RBM Holding Account

Bank reconciliation- NBM Designated Account

Cost centre balance

Page

2-9

10- 12

13

14

15- 17

18- 19

20-21

22

Appendix [

Appendix ll

Appendix UI

Appendix lV

Appendix V

Appendix Vl

Appendix VII



STATEMENT OF MANAGEMENT RESPONSIBILITIES FOR THE 13 MONTHS PERIOD ENDED 30 JUNE 2015

Management of the Agricultural Sector Wide Approach - Support Project - MDTF are required to prepare the receipts and payments statement for each financial period which gives a true and fair view of the state of affairs of the project as at the end of the financial period and of the operating results for the period.

Management are also required to ensure that the project keeps proper accounting records which disclose with reasonable accuracy at any time the financial position of the project to enable them to ensure that the receipts and payments statement comply with the financial agreements and statutes.

In preparing the receipts and payments statement the management accept responsibility for the following:

• maintenance of proper accounting records; • selection of suitable accounting policies and applying them consistently; • making judgment and estimates that are reasonable and prudent; • compliance with applicable accounting standards when preparing receipts and payments

statement, subject to any material departures being disclosed and explained in the Receipts and payments statement;

• preparation of receipts and payments statement on a going concern basis.

Management also accepts responsibility for taking such steps as are reasonably open to them to safeguard the assets of the project and to maintain adequate systems of internal controls to prevent and detect fraud ~d other irregularities.

Management are of the opinion that the receipts and payments statement give a true and fair view of the state of the financial affairs of the project and of its operating results.

The ~rojects' receipts and payments statement has been approved by the management on .11.-t ... . 9. .~. U b. ..... .. . and are signed on their behalf by:

Ps.A..a... u_ c.u_u__C{ PRINCIPAL SECRETARY

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MINISTRY OF AGRICULTURE, IRRIGATION AND WATER DEVELOPMENT AGRICULTURAL SECTOR WIDE APPROACH - SUPPORT PROJECT- MDTF



AUDIT SUMMARY

Background and project identifications

The accompanying reports are given in connection with the Agricultural Sector Wide Approach -Support Project- MDTF under Grant Agreement No TF 016364.

The Ministry of Agriculture, Irrigation and Water Development has been implementing the Agriculture Sector Wide Approach Support Project (ASWAp-SP) from November 2008 with joint initial financing from the Kingdom of Norway and the World Bank. Following the satisfactory performance of the project at mid-term in May 2011 , and in response to Malawi Government ' s request for additional financing, the World Bank provided US$30 million to the project. The additional financing aims to : i) scale up on-going activities to increase the number of farmers receiving support from the project; ii) include new interventions in the field of agriculture diversification and access to markets; iii) undertake a restructuring (change of project name, additional component, revision of results framework and closing date extension). Scaling up of the activities and extension of closure of the project allows for a more comprehensive improvement of overall governance of the agriculture sector by building technical , managerial as well as administrative capacities in the Ministry at all levels and therefore, allow for coordinated financial support to the ASWAp through the establishment ofthe Multi Donor Trust Funds (MDTF).

In January 2014, Government of Malawi negotiated the second Additional Financing (AF2) and signed the grant agreement on 1st April 2014. The AF2 is a grant amounting to US$120 million for the Malawi ASWAp Support Project Programmatic MDTF (TF 072023) created by the World Bank in 2013 to receive various donors ' contributions towards the ASWAp. This arrangement allows for new donors to join the MDTF as well as existing donors to add their additional contributions. At the moment the MDTF has received the following contributions: US$39.1 million equivalent from European Union (EU); US$7.2 million equivalent from Flanders International Cooperation Agency (FICA), US$2.5 million from United States Agency for International Development (USAID), US$37.1 million equivalent from Royal Norwegian Ministry of Foreign Affairs and US$18.9 million equivalent from the Department of Foreign Affairs and Trade of the Republic of Ireland.

With the Additional Financing 1 & 2, the project was restructured to reflect changes to the project design, including additional sub-components and components. Also the results framework, implementation arrangements, fiduciary arrangements, safeguards and loan covenants were revised and updated. It is expected that the Additional Financing 1&2 will increase the number of smallholder farmer households benefitting from project ' s interventions to 3 million (50% of whom shall be women), and 780 km of rural roads will be improved. The closing date of the project has also been extended to June 2017.

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AUDIT SUMMARY (CONTINUED)

Project objectives

The ASWAP-SP ' s overall developmental objective is to improve the effectiveness and sustainability of investments in the agricultural sector with an aim of fostering food security and agriculture-led economic growth. The specific objectives ofthe project include:-

(i) To strengthen institutional capabilities necessary to further develop, and implement, a harmonized and aligned investment framework leading towards a full-fledged SWAp in the agricultural sector;

(ii) To increase the land, water and nutrient use efficiency of maize and legume based rain fed cropping systems targeted by the government's Agricultural Sector Wide Approach (ASWAp);

(iii)To increase the resilience of the maize supply system to cope with climate risks and shocks.

(iv)To improve the agricultural business environment and promote agribusiness partnerships in support of agricultural diversification;

(v) To improve the Land Administration capacity to increase the number of title deeds delivered and draw lessons from the Community Based Rural Land Development Project (CBRLDP);

(vi)To improve market access to the most productive agricultural areas through the improvement and sustainable maintenance of feeder roads.

Project Components

ASWAp SP has four components as follows:

Institutional development and capacity building in support of the Agriculture Sector Wide Approach

The objective of this component is to strengthen institutional capabilities necessary to improve planning, implementation, monitoring and evaluation of public investments in the agricultural sector. The component originally included four sub-components, but has now been increased to five to provide for the scale-up of activities but also to strengthen the land administration capacity. These subcomponents are: - i) ASWAp Management and Coordination Support, ii) Planning, Monitoring and Evaluation Support; iii) Technical Systems and Skills Development; iv) Administrative Systems Development; and, v) Land Administration. Following the implementation of component one activities there will be a) alignment of MoAIWD organization and budget with the AS WAp investment framework; b) improved delivery of core agricultural public services prioritized with respect to the achievement of the ASWAp objectives; c) timely production of reliable statistics on the agricultural sector's production, performance and evolution; d) land information system operational; and, e) improved alignment of the agricultural portfolio.

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WORLD BANK GRANT AGREEMENT NO TF 016364



Sustainable food security agricultural growth and diversification

This component supports existing and generalized maize-based subsistence farming system, but also encourages diversification and marketing (in particular through cereals, legumes and horticultural crops) and promotes public-private investments. This will translate into developing expanded and new research and extension activities to increase the adoption rate of selected technologies, diversified crops (maize, sorghum, millet, legumes, cassava, sweet potato and bananas, agro-forestry products, etc.) Fisheries and livestock production by farmers. In addition to providing a wider income base for households, this will increase the sources of nutrition available to families . The component and the project supports scaling up research and extension activities to increase the adoption rate of selected technologies by FISP beneficiaries. It also supports expanded coverage and improvements in quality of extension activities to reach out to more farmers by promoting innovative and more pluralistic extension methodologies through use of lead farmers , contracting out to NGOs, plant clinic operations, and ICT based extension through use of national and community radio and Television stations, print media and phone text messages. Under this component the project is providing more direct support to the design, programming and implementation of the FISP, including increasing maize and legume seeds availability; ensuring a close monitoring and evaluation (including independent impact evaluation). It further supports to improve the quality of seeds through enhanced seed certification and quality monitoring procedures and capacities. Through this component there will be a) additional lead farmers trained to relay extension activities; b) additional NGOs recruited to fill the extension service coverage gap; c) increased number of farmers receiving technical advice from 900,000 to 1.2 million; d) increase in hectares under conservation agriculture from 150,000 hectares (original target) to 200,000 ha; and e) available annual tonnage of legumes seeds will increase to 4,000mt.

Project coordination

The component will ensure coordination and consistency in implementation of project activities. The Additional Financing 1&2 will provide assistance to the ASWAp secretariat within Ministry of Agriculture, Irrigation and Water Development which has a critical role in coordinating the different Ministries and Departments in charge of the execution of AS W Ap-SP activities. Additional support will consist of technical studies, consultancies and technical assistance, the details of which will be determined in the course of project implementation. AF2 will also provide additional resources to strengthen the mobility of staff, especially at the grassroots level with the procurement of vehicles, motorcycles and bicycles. Communication, connectivity and computerization improvement of the different MoAIWD levels will continue to ensure better circulation of information, collection of data and timely reporting. It is anticipated that there will be timely reporting on project implementation and financial management; accelerated procurement processes; as well as improved implementation coordination as demonstrated by an increased number of activities jointly implemented by different MoAIWD Departments, participating Ministries and other stakeholders.

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Improvement and maintenance of unpaved roads

This is a new component to the project aimed at facilitating farmers' access to agricultural markets through improvements to unpaved rural roads. The component is financed under Additional Financing 1&2 and Works will be concentrated in 10 selected districts (5 selected on AFl and the other 5 on AF2) based on their agricultural potential to create networks of rural access roads which will allow transportation of inputs and produce between the fields and the main roads throughout the year. The component will involve a combination of spot-improvement, rehabilitation and surfacing of unpaved roads using low-volume sealed road techniques, with solutions being selected to provide the requisite levels of access for individual roads. A total of 780km of roads will be improved.

Project Targeting

The project is designed to operate in all the 28 districts across the country and will directly benefit approximately 3,000,000 rural smallholder farmers.

Audit scope, objectives and procedures

Audit objective

Our audit was conducted in accordance with International Standards on Auditing and "the Terms of Reference for the Assignment," issued by the Agricultural Sector Wide Approach - Support Project - MDTF.

Our specific objectives were to: -

• Express an opinion on whether the receipts and payments statement has been prepared in accordance with International Public Sector Accounting Standards (IPSAS) and give a true and fair view of the operations of the project for the period ended 30 June 2015.

• Carry out an assessment whether the ASWAp-SP -MDTF has used all the funds received from pooled partners only on the eligible expenditures , in accordance with the financing agreement

• Review quarterly financial reports produced in accordance with the financing agreement

• Check that ASWAp-SP-MDTF bank accounts have been maintained in accordance with the provisions of the Financing Agreement and funds disbursed out of the Accounts were used only for the purpose intended in the Financing Agreement

• An assessment of the adequacy of the financial management systems of the ministry, including internal controls will have to be done.

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MINISTRY OF AGRICULTURE, IRRIGATION AND WATER DEVELOPMENT AGRICULTURAL SECTOR WIDE APPROACH -SUPPORT PROJECT - MDTF




• An assessment of compliance with the prov1s1ons of the Financing Agreement. The assessment should cover checking compliance with the Public Finance Management Act of2003, Treasury and Desk instructions and all circulars issued to update the instructions. The audit would also check whether expenditure charged to the program as eligible expenditures has been correctly classified .

• Goods, seeds, and services financed have been procured in accordance with the governing legal agreements, the Malawi Government Public Procurement Law (Public Procurement Act of2003) and the Financing Agreement wherever applicable.

• Ineligible expenditures included in withdrawal applications are identified and reimbursed to the Designated Accounts. These should be separately noted in the audit reports

Detailed objectives

The overall objectives can be met by meeting the detailed objectives outlined in the terms of reference. Our audit included such tests as we considered necessary to enable us to obtain reasonable assurance on whether:-

(a) All Bank funds have been used in accordance with the conditions of the grant agreement with due attention to economy and efficiency and only for the purposes for which they were provided.

(b) Counterparts funds have been used in accordance with the grant agreement with due attention to economy with the bank and efficiency and only for the purposes for which they were provided.

(c) Goods, seeds and services financed have been procured in accordance with grant agreement and in accordance with the bank and Malawi Government procedures were provided.

(d) All necessary supporting documents, records and accounts have been kept in respect of all project activities. Clear linkages exist between the books of account and the receipts and payments statement presented to the bank.

(e) Bank accounts have been maintained in accordance with the provisions of the grant agreement and in accordance with the bank's rules and procedures;

(f) The accounting policies adopted are compliant with World Bank accounting policies;

(g) The receipts and payments statement has been prepared in accordance with International Public Sector Accounting Standards and give a true and fair view of the financial position of the project as at period end ; and

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MINISTRY OF AGRICULTURE, IRRIGATION AND WATER DEVELOPMENT AGRICULTURAL SECTOR WIDE APPROACH- SUPPORT PROJECT - MDTF




Pre-audit steps

• Familiarization with project's records in respect of the following;

Financial statements

• Examination of the receipts and payments statement including budgeted amounts by category;

• Reconciliation of the receipts less payments to the bank accounts and cash on hand;

• For expenditure, examination of source documents, verification of adequate authorization and verification that expenditure was allowable under the purposes for which the financing was provided;

• Review of accounting records and ensuring that these have been maintained in accordance with Internationally accepted principles hereunder, that Agricultural Sector Wide Approach - Support Project- MDTF has kept adequate records of the cash and bank transactions;

• Review of procedures used to control funds, and of bank accounts, including ensuring that funds have been deposited in a separate bank account in the name of the auditee and that accrued interests are reflected in the statement from the bank;

• The conversion of one currency to another has been supported by an official receipt from the bank or an official exchange institution, stating the exchange rate;

• Determination that project income was used to further the project' s objectives;

• Review of procurement procedures to ensure that they are in accordance with the Grant agreement and the Bank' s rules and procedures.

Internal control structure

• Obtaining a sufficient understanding of the internal control structure to plan the audit and determine the nature, timing and extent of tests to be performed;

• Documentation and evaluation ofthe control environment, the accounting system and the control procedures;

• Assessment of control risk, that is the effectiveness of the internal control structure, policies and procedures of the Agricultural Sector Wide Approach - Support Project - MDTF in preventing or detecting material misstatements in the receipts and payments statement:

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MINISTRY OF AGRICULTURE, IRRIGATION AND WATER DEVELOPMENT AGRICULTURAL SECTOR WIDE APPROACH- SUPPORT PROJECT - MDTF




Compliance with grant agreement terms

• Identification of the agreement terms and determination of those which if not observed could have a material effect on the receipts and payments statement;

• Assessment of each material requirements and the risks that non-compliance could occur;

• Design of audit steps and procedures to test for errors, irregularities, and illegal acts, that provide reasonable assurance of detecting instances of non-compliance;

• For all payments, verifying that they have been made in accordance with agreement terms and applicable regulations;

• Verifying that expenditure by category was within the approved categories and the approved list of goods and services;

• Determination that the receipts and payments statement are supported by the books and records from which the Receipts and payments statement are prepared;

• Determination that the special account has been maintained in accordance with the provisions of the grant agreement and the Bank's rules and procedures;

• Assessment of the physical status of implementation of the project components in relation to the level of disbursement made so far against the targets as set out in the Project Implementation Manual.

Agricultural Sector Wide Approach - Support Project - MDTF did not prevent us from conducting any tests and procedures deemed necessary to form a reasonable basis for our opinion.

Audit results

Receipts and payments statement

The results of our tests disclosed the following questioned amounts:

• Distribution of seed not verified to completed beneficiary registers

• Closing bank balances not agreed to reconciled bank balances

• Unsupported payments

• Payments for activities with no reports

• Purchases not verified to stock records • Inadequate procurement procedures

In our opinion, except for the matters noted above, the receipts and payments statement, gives, a true and fair view of the financial position of the project as of 30 June 2015 and of its receipts and expenditures and cash flows for the year then ended in accordance with the grant agreement and the Bank's rules and regulations.

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WORLD BANK GRANT AGREEMENT NO TF 016364



Internal controls

We noted some weaknesses in the system which have been reported m a separate letter to management. Below is the summary of the weaknesses:

• Payments not supported by adequate third party documentation • Bank reconciliations not being properly done i.e. Non preparation of reconciliations for the

ADD's holding accounts, cashbooks not being reconciled to bank statement balance, stale cheques still appearing on the bank reconciliations

• Purchases not verified to stock records and no evidence of delivery to beneficiaries • Delays in despatching cheques • Allowances not paid to individual bank accounts but paid through one of the participants bank

Account. • Procurement procedures not properly done • No evidence that budgets or workplans in cost centers were used to control expenditure • Vouchers not stamped "PAID" • No evidence that usage of fuel purchases was monitored through the use of logbooks • Payments in respect of motor vehicle maintenance without PVHO inspection report • Non insurance of project assets • The fixed asset register did not include details of location of some assets and some assets could

not be traced in the fixed asset register

ln our opinion, except for the matters reported, internal controls were adequate for the period.

Compliance with agreement terms

In our opinion, the provisions of the Financing Agreement were complied with during the period under review except for the following:-

• Non compliance with the budget provisions • Non compliance with the Taxation Act

Designated Account

In our opinion the designated account, has been properly maintained in accordance with the provisions of the financing agreement and funds disbursed out of the accounts were used only for the purpose intended in the Financing Agreement.

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GRAHAM CARR i i Ce11ified Public Accountants

l~nf!~ll JNTER:\ATIONAL

AUDITOR'S REPORT TO THE DELEGATION OF THE



Scope We have audited the receipts and payments statement of Agricultural Sector Wide Approach -Support Project - MDTF under Ministry of Agriculture, Irrigation and Water Development Grant no. TF 016364 for the period ended 30 June 2015.

Management's responsibility for the receipts and payments statement Management is responsible for the preparation and fair presentation of the receipts and payments statement in accordance with International Public Sector Accounting Standards. This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of receipts and payments statement that is free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

Auditor's responsibility Our responsibility is to express an opinion on the receipts and payments statement based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the receipts and payments statement is free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the Receipts and payments statement. The procedures selected depend on the auditor' s judgment, including the assessment of the risks of material misstatement of the receipts and payments statement; whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the receipts and payments statement in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the receipts and payments statement.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

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I ADL house, 2nd Floor, City Centre I P.O.Box 898 Lilongwe Malawi

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GRAHAM CARR ii Certified Public Accountants

l~ut4Al !NTER'\ATIONAL

Audit Opinion

In our opinion:-

(a) The receipts and payments statement has been prepared in accordance with International Public Sector Accounting Standards ( IPSAS) and give a true and fair view of the operations of the project for the period ended 30 June 2015

(b) The ASWAp SP MDTF used all the funds received only on eligible expenditures and in accordance with the conditions ofthe Financing Agreement

(c) Goods, seeds, and services financed have been procured in accordance with the governing legal agreements, the Malawi Government Public Procurement Law (Public Procurement Act of 2003) and the Financing Agreement wherever applicable

Graham Carr 141

h March 2016

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Except for the notes I, 2, 3, and 4 of the Annexure to the Audit Report on pages 12

Except for the notes 1, 2, 3, and 4 of the Annexure to the Audit Report on page 12

Except for notes I and 5 of the Annexure to the Audit Report on page 12


ANNEXURE TO THE AUDIT REPORT FOR THE YEAR ENDED 30 JUNE 2015

1. DISTRIBUTION OF SEED The number of people who had signed on the completed beneficiary registers for the following districts were not in agreement with the number of vouchers that were recovered, and accordingly, we were unable to prove if distribution to farmers was completed and whether the farm input had reached the intended beneficiaries.

Balaka Chiradzulu Mzimba Neno Thyolo

No. of No. of vouchers recovered

46,081 37,824 93,313 14,538 87,300

vouchers verified to

signed registers

41 ' 160 37, 158 54,801

8,463 79,297

No. of people not verified

signed registers

4,921 666

38,512 6,075 8,003

2. COST CENTER BANK BALANCES

Questioned amount for

Maize

25, 111 ,912 3,398,605

196,527,121 31 ,000,786 40,839,393

296,877,817

Questioned amount for

Legumes

13,012,536 1,761 ,095

101 ,836,781 16,064,043

211 ,622,229

344,296,684

Total MK

38,124,448 5, 159,700

298,363 ,902 47,064,829

252,461 ,622

641 ' 174,501

The reported closing bank balances are figures from the summaries of transfers and expenditure incurred by the cost centers prepared at headquarters for the purposes of reporting and they are not reconciled cashbook balances. In all the cost centres that were visited except for Karonga District Assembly, the bank balances included in the receipts and payments statement could not agree to the reconciled bank balances as at the period end and the difference on these bank balances amounts to MK44,364, 152.

And accordingly, we are unable to determine whether any adjustments might be necessary to the amounts shown in the receipts and payments statement on the completeness, existence and accuracy of bank balances as at 30 June 2015 .

3. MISSING OR UNSUPPORTED PAYMENTS The results of our tests disclosed the following questioned costs of MK 166,800,026.08 (payments that are not supported with adequate documentation amounting to MK 136,495,273.14, missing vouchers and documentation of the process of evaluation of tenders and quotations amounting to MK10,956,952.94, payments not verified to activity reports amounting to MK19,347,800). In absence of adequate documentation, we were unable to ascertain the validity of the expenditure incurred and how the selection of the suppliers was made.

4. PURCHASES NOT VERIFIED TO STOCK RECORDS Payments amounting to MK46,526,066.42 relating to purchases were not verified to stock records and accordingly , we were unable to confirm if the purchases were completely recorded in the stock records and whether they reached the intended beneficiaries.

5. PROCUREMENT PROCEDURES We were not provided with adequate evidence that standard procurement procedures outsourcing 3 quotations from prequalified suppliers/tendering process) were followed on payments amounting to MK27,045 ,504.80. In absence of adequate documentation, we were unable to verify how the selection of the suppliers was done and if the goods and services were procured at competitive prices.

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MINISTRY OF AGRICULTURE, IRRIGATION AND WATER DEVELOPMENT AGRICULTURAL SECTOR WIDE APPROACH SUPPORT PROJECT MDTF


RECE~TSANDPAYMENTSSTATEMENT

FOR THE 13 MONTHS PERIOD ENDED 30 JUNE 2015

RECE~TS AND PAYMENTS STATEMENT BY COMPONENT

Sources of funding

World Bank Government of Malawi Othe income

Total financing

Uses of funds

Notes

3 4

5

Instituitional Development and capacity Building ASWAP Management and Coordination support Planing , Monitoring and Evaluation Support Technical Systems Development Administration Systems Development

Sustainable Food Security & Agric Growth Divers Sustainable Productivity Growth Initiative Strengthening Market Based Agric Risk Management Promotion of Legume Production and Marketing Promotion of Agribusiness through PPs

Project Coordination

Total expenditure

Unspent funds

2015 MK'OOO

20,788,676 26,421

6,142

20,821,239

99,853 723 ,906

44,870 413,551

1,282,179

14,586,291 97,717 68,037

111 ,029

14,863,074

286,284

16,431,537

4,389,702

2015 US$

48,388,044 59,775 14,197

48,462,016

231 ,958 1,659,693

109,201 977,392

2,978,244

34,633,396 235 ,518 151 ,052 252,497

35,272,463

673,976

38,924,683

9,537,333

MINISTRY OF AGRICULTURE , IRRIGATION AND WATER DEVELOPMENT AGRICULTURAL SECTOR WIDE 'APPROACH SUPPORT PROJECT MDTF


STATEMENT OF FINANCIAL POSITION AS AT JUNE 2015

Notes 2015 MK'OOO

ASSETS Fixed Assets Office Equipment 6 149,577 Office Furniture 6 24,185

Total financing 173,762

Current Assets

World Bank Designated Account 7 2,995,999 Project Bank Account 7 508,958 Cost Center balances 8 119,397 Advances 9 765,348

4,389,702

Total Assets 4,563,464

Cumulative Project Expenditures 16,257,775

20,821,239

LIABILITIES AND FINANCING

World Bank credit 3 20,788,676

Government Contribution 4 26,421

Other income 5 6,142

Total Liabilities and Financing 20,821,239

2015 US$

353,222 59,293

412,515

6,458,103 1,121 ,831

264,152 1,693,247

9,537,333

9,949,848

38,512,168

48,462,016

48,388,044 59,775 14, 197

48,462,016

The receiP,ts and _payments statement was authorised for issue by the project management

on . . . J4:.J9.~.J.Jb ... .... and was signed on its behalf by: ..

PRINCIPAL SECRETARY COORDINATOR

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MINISTRY OF AGRICULTURE , IRRIGATION AND WATER DEVELOPMENT AGRICULTURAL SECTOR WIDE APPROACH SUPPORT PROJECT MDTF


NOTES TO THE SOURCES ND USES OF FUNDS STATEMENT FOR THE 13 MONTHS PERIOD ENDED 30 JUNE 2015

1 BACKGROUND

The Agriculture Sector Wide Approach Support Project - Multi Donor Trust Fund is a World Bank managed project that is financed by a multiple of donors. It is implemented within the ASW Ap framework to advance specific objectives within the Agricultural Sector.This is a grant amounting to US $ 100.0 million to be implemented in two and a half years beginning 01 April, 2014 when the grant agreement was signed to 31 December 2016. The closure date is 30 June 2017.

2 ACCOUNTING POLICIES

The principle policies adopted in the preparation of these financial statements are set out below

2.1 Basis of preparation

The receipts and payments statement has been prepared in accordance with International Public Sector Accounting(IPSAS) with particular emphasis on cashbasis financial reporting under the cash basis accounting .

2.1 Cash basis accounting

The cash basis accounting recognises transactions and events only when cash is received or paid by the project .

2.2 Income

Receipts represent funding received from World Bank. Funds are deposited into a special Account with the National Bankof Malawi from where transfers are made to the holding account.

2.3 Expenditure

These represent all expenditure actually incurred through the special account and from the local operating account.

2.4 Foreign currency translation

The receipts and payments statement of the programme is expressed in Malawi Kwacha , which is the functional and presentation currency of the programme. Actual expenditure is translated into United States Dollars using the exchange rates that National Bank of Malawi used to convert the proceeds from the special account. Exchange differences arising on the settlement of monetary items, and on the translation of monetary items are included in the receipts and payments statement for the period .

The average of the period end buying and selling of United States Dollar was

Kwacha/Dollar 463 .910

2.5 Fixed assets

Capital expenditure is expended in the project's books of account in the period in which the payment for such item is made. There is no provision for depreciation .



NOTES TO THE SOURCES ND USES OF FUNDS STATEMENT (CONTINUED) FOR THE 13 MONTHS PERIOD ENDED 30 JUNE 2015

3 WORLD BANK CREDIT Appendix III

2015 MK'OOO

20,789

2015 US$

48,388,044

These represents the amount the world Bank disbusred during the period under review . Some amounts were disbursed into the project designated account while others the Bank was paying direct to the suppliers.

4 Government Contribution

These amounts relate to Government officers that are engaged on project activities. They comprise of salaries of these officers which the government pays and proportional to the amount they spend on project related activities.

Salaries 26,421 59,775

5 Other income

6

7

8

This comprises of interest received in the designated account from IJune 2014 to 30 June 2015 .

FIXED ASSETS

Furniture & Fittings Appendix IV

Office Equipment Appendix IV

BANK BALANCES

Holding Account Appendix V

Designated Account Appendix VI

COST CENTER BALANCES

24,185 149,577

173,762

508,958

2,995 ,999

3,504,957

59,293 353,222

412,515

1 '121 ,83 1 6,458,103

6,458,103

These are amounts that were remaining as at 30 June 2015 from beneficiary cost centers. Cost centers are funded periodically . These funds are spent following prepared cashflows and implementation plans of those cost centers . District councils use consolidated District Development Fund Accounts while ADD's use Holding accounts held at the Reserve Bank of Malawi

District Councils Agriculture Development Divisons

Appendix VII Appendix VII

2015 MK'OOO

51,944 67,453

119,397

2015 US$

114,921 149,231

264,152



NOTES TO THE SOURCES ND USES OF FUNDS STATEMENT (CONTINUED) FOR THE 13 MONTHS PERIOD ENDED 30 JUNE 2015

9 ADVANCES

These represents amounts recoverable by the project for the transfers to /expenses made on behalf of the Ministries

Ministry of Trade and Industry

Ministry of Lands and Housing

190,524

574,824

765,348

421 ,513

I ,271,734

1,693 ,247

GRAHAM CARR i i Ce11ified Public Accountants

l&art~ll !NTEIL'\ATIONAL



AUDITORS REPORT ON INTERNAL CONTROLS FOR THE 13 MONTHS PERIOD ENDED 30 JUNE 2015

We have audited the receipts and payments statement of Agricultural Sector Wide Approach -Support Project- MDTF as of30 June 2015 , and have issued a report thereon dated 14th March 2016.

We conducted our audit in accordance with International Standards on Auditing ad Ministry of Agriculture, Irrigation and Water Development's terms of reference pertaining to external audit. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the receipts and payments statement is free from material misstatement.

In planning and performing our audit of the Agricultural Sector Wide Approach - Support ProjectMDTF project for the period ended 30 June 2015, we considered its internal controls as a basis of designing our audit procedures for the purpose of expressing our opinion on the Receipts and payments statement, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal controls.

Our consideration of internal controls was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal controls that might be significant deficiencies or material weaknesses.

A deficiency in internal controls exists when the design or operation of a control does allow management or employees, in the normal course of performing their assigned functions to prevent or detect and correct misstatement on a timely basis. A material weakness is a deficiency or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented or detected and corrected on a timely basis.

Upon examining the internal controls, the following was noted:

• Payments not supported by adequate third party documentation • Bank reconciliations not being properly done i.e. Non preparation of reconciliations for the

ADD's holding accounts, cashbooks not being reconciled to bank statement balance, stale cheques still appearing on the bank reconciliations

• Purchases not verified to stock records and no evidence of delivery to beneficiaries • Delays in despatching cheques

- 18-


---- - - • "'4

--- _ , • • ,... ~,...~ n n r r- __ AI ~~c...,£ ""\ r. _ , !1. 1:1 ..... -.--. .. , ..., C.\ ~.,...,h..,""'""..,.........,.,...'''""nii"Y\


i~nf!4Al TNTF.RXATIONAL

• Allowances not paid to individual bank accounts but paid through one of the participants bank account

• Procurement procedures not properly done • No evidence that budgets or work plans in cost centers were used to control expenditure • Vouchers not stamped "PAID" • No evidence that usage of fuel purchases was monitored through the use of logbooks • Payments in respect of motor vehicle maintenance without PVHO inspection report • Non insurance of project assets • The fixed asset register did not include details of location of some assets and some assets could

not be traced in the fixed asset register

Except for the above findings, internal controls were adequate for the period.

Information contained in this report may be privileged. This report is intended solely for the use of Agricultural Sector Wide Approach - Support Project - MDTF and the World Bank but this is not intended to limit the distribution of the report if it is a matter of public record.

Graham Carr 14th March 2016

- 19-


l~uf:J.~ !NTER.'\ATIONAL



AUDITORS REPORT ON COMPLIANCE WITH AGREEMENT TERMS FOR THE 13 MONTHS PERIOD ENDED 30 JUNE 2015

We have audited the receipts and payments of Agricultural Sector Wide Approach- Support Project - MDTF for the period ended 30 June 2015, and have issued a report thereon dated 14th March 2016.

We conducted our audit in accordance with International Standards on Auditing and terms of reference for the audit. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the Receipts and payments statement is free from material misstatement.

Compliance with the terms of the grant agreement and the World Bank' s rules and procedures is the responsibility of Agricultural Sector Wide Approach - Support Project - MDTF Agricultural Sector Wide Approach -Support Project - MDTF. As part of obtaining reasonable assurance about whether receipts and payments statement is free of material misstatement, we performed tests of compliance with certain provisions of agreement terms and the project document. However, our objective was not to provide an opinion on overall compliance with such provisions. Accordingly, we do not express such an opinion.

Material instances of non-compliance are failures to follow requirements or violations of agreement terms that cause us to conclude that the aggregation of misstatement resulting from those failures or violations is material to the fund accountability statement. The results of our tests of compliance disclosed the following material instance of non-compliance: -

• Non compliance with budget provisions • WHT not deducted from eligible payments

We consider this instance of non-compliance in forming our opinion on the receipts and payments statement are presented fairly, in all material respects and this report does not affect our report on Receipts and payments statements dated 141

h March 2016.

Except as described above, the results of our test of compliance indicate that, with respect to the items tested , the project complied in all material respects with the provisions referred to in the third paragraph of this report. With respect to items not tested, nothing came to our attention that caused us to believe that the project had not complied, in all material respects, with those provisions

-20-


GRAHAM CARR i i Certified Public Accountants

IS•:t~l1 INTER."'ATIONAL

Financial information contained in this report may be privileged. This report is intended solely for the use of Agricultural Sector Wide Approach - Support Project- MDTF and the World Bank but this is not intended to limit the distribution of the report if it is a matter of record.

Graham Carr 14th March 2016

-21 -

GRAHAMCARR ii Certified Public Accountants

l~nt~D INTER.'\AT!ONAL



DESIGNATED ACCOUNT NUMBER 1001316024 FOR THE 13 MONTHS PERIOD ENDED 30 JUNE 2015

We have audited the accompanying statement of special account number 10031316024 for the Agricultural Sector Wide Approach - Support Project - MDTF Grant Agreement No TF 016364 for the period ended 30 June 2015.

Management's responsibility for the statement of special account Management is responsible for the preparation and fair presentation of the statement of special account in accordance with International Public Sector Accounting Standards. This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of statement of special account that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

Auditor's responsibility Our responsibility is to express an opinion on the statement of special account based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the statement of special account is free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the statement of special account. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the statement of special account, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity ' s preparation and fair presentation of the statement of special account in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity ' s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the statement of special account.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion In our opinion,

• The reported bank balance give, a true and fair view of the financial position of designated account number 1001316024 as at 30 June 2015.

• The designated account has been maintained in accordance with the provisions of the Financing Agreement and funds disbursed out of the account were used only for the purpose intended in the Financing Agreement

crQ"'-arn Carr Graham Carr 141

h March 2016 -22-





ANNEX I- RECEIPTS AND PAYMENTS STATEMENT BY CATEGORY

2

3

4

5

6

Goods, works, non-consulting services, consultants'services, operating costs and training under Part I (a), (b), (c) and (d) and part 3 of the Project

Goods, works, non-consulting services, consultants'services, operating costs and training under Part I (e) of the Project

Goods, works, non-consulting services, consultants'services, operating costs and training under Part 2 (a), (c) and (d) of

Project

works, non-consulting services, consultants'services, costs and training under Part 2 (b) of the Project

Goods, works, non-consulting services, consultants'services, operating costs and training under Part 4 (a) and (b)ofthe

Total

Appendix I



STATEMENT OF EXPENDITURE (SOE) FOR THE 13 MONTHS PERIOD ENDED 30 JUNE 2015

A endix II

STATEMENT OF EXPENDITURE Project component & activity Allocation Allocation Current Current Variance Variance

Expend Expend

US$ MK'OOO US$ MK'OOO US$ MK'OOO

1.0 Institutional Development and Capacity Building 1.1 ASW AP Management and Coordin.!!_tion Support

ASWAP Secretariat(including actual Govt contribution) 315,000 126,000 117,027 51 , 105 197,973 74,895 Capacity Strengthening Team 385,500 154,200 7,010 3, 161 378,490 151 ,039 Leadership & Management skills training 180,000 72,000 58,176 26,511 121 ,824 45,489 ASWAP Orientation and Visibility 142,500 57,000 49,746 19,076 92,754 37,924

1,023 ,000 409,200 231 ,959 99,853 791 ,041 309,347

-~

1.2 Planning, Monitoring and Evaluation Support

Agriculture Sector Planning 858,900 343,560 704,079 326,990 154,821 16,570 Monitoring and Evaluation 3,774,100 1,509,640 955,614 396,916 2,818,486 1, 11 2,724

4,633 ,000 1,853 ,200 1,659,693 723,906 2,973 ,307 1,129,294

1.3 Technical Systems Development Technical Assistance 151 ,700 60,680 71 ,968 27,828 79,732 32,852 Professional Training 2,668,300 1,067,320 37,233 17,042 2,631 ,067 1,050,278

2,820,000 I, 128,000 109,201 44,870 2,710,799 1,083 ,130

~

1.4 Administration Systems Development Financial Management 556,500 226,600 430,036 180,309 126,464 46,291 Human Resource Management 374,600 149,907 153,243 62,543 221 ,357 87,364 Procurement Management 228,000 91 ,200 105,759 46,973 122,241 44,227 Administration Management 320,000 128,000 288,354 123,726 3 1,646 4,274

1,479,100 595,707 977,392 413 ,551 501 ,708 182,156 -

- 24-




A endix II

STATE ME NT OF EXPENDITURE Project component & activity Allocation Allocation Current Current Variance Variance

Expend Expend

US$ MK'OOO US$ MK'OOO US$ MK'OOO --

Land Admj nstration 1.5 - --Capacity Building at Ministry of Lands & Housing 1,847,469 618,988 - - 1,847,469 618,988 Equipment for the Ministry of Lands & Housing 3,853,790 1,541 ,516 - - 3,853 ,790 1,541 ,516

Preparation of Scaled-up CBRLDP 961,250 384,500 - - 961 ,250 384,500

Administration management - 120,000

6,662,509 2,665 ,004 - - 6,662,509 2,665,004

16,617,609 6,651 , 111 2,978,245 1,282,180 13,639,364 5,368,931

2.0 Sustainable Food Security & Agric Growth Divers

2.1 Sustainable Productivity Growth Initiative

Use of improved technology options 5,431 ,651 2, 172,660 3,499, 11 3 1,570,570 1,932,538 602,090

Improved seed development and use for cerials & legumes 9,741 ,600 3,896,640 I, 191 ,584 409,970 8,550,016 3,486,670

Improved crop nutrient management 1,800,000 720,000 107,971 490,553 1,692,029 229,447

Sustainable land and rainwater amanagement 888,000 584,000 9,434 3,853 878,566 580, 147

Reducing Post- harvest Losses 70,000 - 6,499 - 63 ,501

Improve Livestock Research and Development Ipmproved Fisheries Development Efficient Agricultural research and extention serv. Delivery 671 ,625 358,200 - 26,42 1 671 ,625 33 1,779 Strengthern leadership and teamwork of tech providers Agriculture Technology Delivery Systems Farm Input Subsidy Program (FISP) 26,700,000 9,400,000 29,818,797 12,084,924 (3 , 118,797) (2,684,924)

45,302,876 17,131 ,500 34,633,398 14,586,291 10,669,478 2,545 ,209

- 25 -




A endix II


Expend Expend

US$ MK'OOO US$ MK'OOO US$ MK'OOO 2.2 ~trengthening Market Based Agric Risk Mng!!!_t

Rainfall Index Based Early Warning Models 410,000 164,000 114, 181 45,141 295,819 118,859 Macro Weather Insurance 80,000 32,000 33 ,684 13,903 46,316 18,097 Micro Weather Insurance 200,000 80,000 37,805 16,911 162,195 63 ,089 Maize Supply/Price Hedging Strategies 100,000 40,000 12,259 4,497 87,741 35,503 Warehouse Receipt System Management 60,000 24,000 - - 60,000 24,000 Capacity Building for Integrated Commodity Risk Mngmt. 733 ,000 293 ,200 37,589 17,264 695,411 275,936

1,583 ,000 633 ,200 235,518 97,716 1,347,482 535,484

2.3 Promotion of Legume Production and Marketing Improved Access to Certified Legume Seed 500,000 200,000 74,104 34,434 425,896 165,566 Support for Legume Crop Diversification 1,692,800 677,120 76,948 33,604 1,615 ,852 643,516 Legume seed multiplication I production 200,000 80,000 - - 200,000 80,000 Legume Marketing 200,000 80,000 - - 200,000 80,000

2,592,800 1,037, 120 151 ,052 68,038 2,441 ,748 969,082

2.4 Promotion of Agribusiness th.ro.!!gh PPPs _ Enhancement of business environment in Agriculture 5,880,121 2,352,344 41 ,483 17,524 5,838,638 2,334,820 Promotion of Agribusiness PPPs Matching Grants 1,880,000 752,000 4,476 1,987 1,875,524 750,013

Support to Farmers Organisation 487,500 180,000 206,538 91 ,518 280,962 88,482

8,247,62 1 3,284,344 252,497 111 ,029 3,173,315 --

57,726,297 22,086, 164 35,272,465 14,863,074 14,458,708 7,223 ,090

- 26 -




A endix II


Expend Expend

US$ MK'OOO US$ MK'OOO US$ MK'OOO

3.0 Project Coordination Engange Project Staff 522,500 209,000 95,469 35,496 427,031 173,504

Project Vehicles and Management 5,542,300 2,216,920 133,879 57,123 5,408,421 2,159,797

Facilitate Conduction of Meetings 46,000 18,400 37,309 16,889 8,691 1,51 I

Conduct Monitoring of the project by Management 240,250 96,100 156,469 70,488 83,781 25,612

Office Running Costs 374,507 113,412 250,850 106,288 123,657 7,124

6,725,557 2,653 ,832 673 ,976 286,284 6,051 ,581 2,367,548

4.0 Rural Roads Improvement and Maintenance of Rural Roads 18,850,000 6,501 ,000 - - 18,850,000 6,501 ,000

Road Management Capacity Building 497,866 89,304 - - 497,866 89,304

Road Component Project Management 1,847,609 848,886 - - 1,847,609 848,886

21 ,195,475 7,439,190 - - 21 ,195,475 7,439,190

TOTAL USES OF FUNDS I 02,264,938 38,830,297 38,924,686 16,431 ,538 55,345,128 22,398,759

. 27 .




SUMMARY OF WORLD BANK DISBURSEMENTS

DATE PARTICULARS PAYEE AMOUNT REQUESTED

US$ 09/06114 WAMDTFOI Advance to Designated Account 16,000,000.00 09/07/13 WA MDTF 02 Advance to Designated Account 2,000,000.00 10/07/13 WA MDTF 03 Advance to Designated Account 20,236.50 12/09/13 WAMDTF04 Advance to Designated Account 11,483,655 .50 09/07113 WA MDTF05 Demeter Agriculture Ltd 1,495,847.50 12/09/13 WA MDTF06 Seed Co Malawi 2,096,119.60 22/ 10/ 13 WAMDTF07 Demeter Agriculture Ltd 4,055,229.40 22110/13 WA MDTF08 Pannar Seed Ltd 621,994.00 05/12113 WA MDTF09 NASFAM 547,052.10 04112113 WA MDTF 10 Mosanto Malawi Ltd I, I 05 ,3 84.00 17/02/ 14 WAMDTF II Seed Co Malawi 2,689,247.70 25/02/14 WAMDTF 12 Airbus Defence & Space 473 ,278 .00 02/ 10/ 14 WAMDTF 13 Advance to Designated Account 5,800,000.00

Total 48,388,044.30

A endix III

AMOUNT AMOUNT APPROVED

US$ MK 16,000,000 .00 6,320,000,000.00 2,000,000.00 990,000,000.00

20,236.50 I 0,017,067.50 11,483,655 .50 5,190,612,286.00

I ,495,84 7.50 676,123,070.00 2,096,119.60 913,908,145 .60 4,055,229.40 1,727,527,724.40

621 ,994.00 271 ' 189,3 84.00 547,052.10 238,514,715.60

1,105 ,3 84.00 481,947,424.00 2,689,247.70 I, 145,619,520.20

473,278.00 20 I ,616,428.00 5,800,000.00 2,621,600,000.00

48,388,044.30 20,788,675,765.30

fRY OF AGRICULTURE, IRRIGATION AND WATER DEVELOPMENT :UL TURAL SECTOR WIDE APPROACH SUPPORT PROJECT MDTF

f AGREEMENT NO. TF 016364

IF ASSETS JUNE 2015

t\ I CHEQUE NUMBER

I 1000818

I 1000819

I 000819

I 1000977/000978

t I 000977/000978

t 1000087

t 1000087

~000087

4 00221 0/02211

4 00221 0/02211

4 1002210/02211

4 1002210/02211

4 1002210/02211

5 1004329/004330

5 1004329/004330

5 1004352/004353

5 1004352/004353

5 1004352/004353

5 1005181

5 15181

14 1000021 /000022

INVOICE NUMBER

47162

20856

28056

215

218

201

201

201

OF/06/448

OF/06/448

OF/06/448

OF/06/448

OF/06/448

2934

2934

2934

125

125

2 17

QUANTITY !SUPPLIER

19

50

2

3

8

50

I

5

9

3

4

2

60

15

2

105

78

2

Mapanga Furniture

Mapanga Furniture

Mapanga Furniture

Furniture Direct

Furniture Direct

Furniture Direct

Furniture Direct

Furniture Direct

Oasis Furniture

Oasis Furniture

Oasis Furniture

Oasis Furniture

Oasis Furniture

Game Stores

Game Stores

Oasis Furniture

Oasis Furniture

Oasis Furniture

A.A.M.Furnishers

AAM.Furnishers

INSP!RON TECHNOLOGY

- ·-- --l-

G/L CODE I TYPE/CLASS

41-15 !Furniture

41-15 I Furniture

41-15 !Furniture

41-15 I Furniture

41-15 !Furniture

41-15 !Furniture

41-15 Furniture

41-15 Furniture

41-15 Furniture

41-15 Furniture

41-15 !Furniture

41-15 1Furniture

41-15 !Furniture

41-15 !Furniture

41-15 !Furniture

41-15 Furniture

41-15 Furniture

41-15 Furniture

41-15 Furniture

Furniture

DESCRIPTION

Conference Room Tables

Round Table

Conference Room Chairs

Executive Desk

Executive Leather High back Swivel Chair

Executive Office Desks

Executive Leather Chairs

Executive Leather High back Swivel Chair

Executive L Shape Office Desks

Visitors Chairs with Steel Base

Steel Filing Cabinets

Executive Swivel High back Chairs

Executive Swivel Secretary Chairs

L Back Chairs

Tables

Executive L shape Office Desk

Executive Chair

Visitor Chairs

Exective Maron Carpet

Curtains

41-15 !Office Equipment lAO Scaners

14 I 000021 1000022 217 6 IINSPIRON TECHNOLOGY I 41-15 !Office Equipment !Trimble GPS (Hand held) - 1 I

COST AT ACQUISITION

LOCATION

1,758,602.45IDAES

74,707.61IDAES

2,859,026.50IDAES

340,000.00 IHQ

699,000.00IHQ

I,360,000.03 IHQ

6,999,999. 78 IHQ

233 ,000.00 IHQ

2,213 ,500.00

524,250.00

349,500.00

699,000.00

186,400.00

494,400.001Daes

530,250.001Daes

466,000.00IHqs

I86,400.00IHqs

256,300 .00~

2,970,662.631 Hqs

983,667.751 Hqs

24,184,666.74

RATE

398.00

398 .00 398 .00

398.00

398.00

398.00

398.00

398.00

398 .00

398 .00

398.00

398.00

398.00

442.00

442.00

442.00

442.00

442.00

442 .00

442.00

Appendix IV

US$

4,418.60

187.71

7, 183.48

854.27

1,756.28

3,417.09

17,587.94

585.43

5,561.56

1,317.21

878.14

1,756.28

468.34

1, 118.55

1,199.66

1,054.30

421.72

579.86

6,720.96

2,225.49

59,292.87

25 ,000,000.00 !Lands ~5.00 I 63 ,291.14 I

8,854,800.00 Lands 395 .00

1,991 ,353 .14 HQ 398 .00 ------il00 1156 IINV36322 1

4 001281 2090

4 IT Centre I 41-15 I Office Equipment I HP Probook Laptop computers

I Lords Best Collection 41-15 Office Equipment Fridge and Fridge guard I 229,800.00 IHQ __ 1_228 00

22,417.22

_ 5,003.40

577.39

-29-

TRY OF AGRICULTURE, IRRIGATION AND WATER DEVELOPMENT :UL TURAL SECTOR WIDE APPROACH SUPPORT PROJECT MDTF

T AGREEMENT NO. TF 016364

IF ASSETS JUNE 2015

I 001573 I 001573 I 001573

I 001573

I 001573

l 001573

I 001673 l 001673

t 001674

t 001674

t 001923

t 002274

4 002274

5 003083/003084/3830/3

5 003083/003084/3830/3

5 003083/003084/3830/3 lo~

5 003141/003832/00383 I~

5 003141 /003832/00383 I• -

5 003141 /003832/00383

5 003141 /003832/00383

' 5 003814/0038 I 9

5 003814/003819

5 003814/003819

5 002733/002734

5 002733/002734

5 002733/002734

5 002733/002734

5 002733/002734

.5 002839/002840 -.5 002839/002840 .5 002680/002681 /002945

15 002680/002681 /002945 15 002680/002681 /002945

MZ00041 MZ00042 MZ00043 MZ00044

MZ00047 MZ00048

lNV36360 lNV36360

MZ00039

MZ00040

MZ00049

MZ00207

MZ00208

300115

300115

300115

290115

290115

290115

290115

454

454

454

454

454

9696

9696 02554 02554 02554

100 H H Wholesallers



50 H H Wholesallers

ISS H H Wholesallers


5 IT Centre

I IT Centre



50 H H Wholesallers



6 Globe Computers

6 Globe Computers

6 Globe Computers

I Globe Computers

I Globe Computers

I Globe Computers

I Globe Computers

I Globe Electronics Ltd



3 Oasis Furniture

3 Oasis Furniture

3 Oasis Furniture

5 Oasis Furniture

5 Oasis Furniture

4 Compubyte --

10 Compubyte

2 Blockbuster -- -- ---

2 Blockbuster - -3 Blockbuster

41-15 Office Equipment





























41-15 Office Equipment 41-15 Office Equipment 41-15 Office Equipment 41-15 Qfficc: Eguipment

-30-

Aooendix IV Heavy duty Push Bicycles 3,640,625 .00 HQ 398.00 9, 147.30 Heavy duty Push Bicycles 4,368,750.00 HQ 398.00 10,976.76 Heavy duty Push Bicycles 5,460,939.50 HQ 398.00 13 ,720.95 Heavy duty Push Bicycles I ,820,312.50 HQ 398.00 4,573.65 Heavy duty Push Bicycles 5,642,968. 75 HQ 398.00 14,178.31 Heavy duty Push Bicycles 3,640,625.00 HQ 398.00 9,147.30 HP Desk Top Computers 5,215,304.53 HQ 398.00 13, 103.78 HP Proliant Server ML 310 I ,967,976.25 HQ 398.00 4,944.66

Heavy duty Push Bicycles 4,368, 750.00 HQ 398.00 10,976.76

Heavy duty Push Bicycles 6,553, 125.00 HQ 398.00 16,465.14

Heavy duty Push Bicycles 1,820,312.50 HQ 398.00 4,573 .65

Heavy duty Push Bicycles 7,281 ,000.00 398.00 18,293.97

Heavy duty Push Bicycles 7,099,218.75 398.00 17,837.23

Dell Optiplex 70 I 0 iS Computers 3,569,999.97 495 .00 7,212.12

UPS 650 VA APC 389,999.99 495.00 787.88

HP 450 G I Laptops,Si 8GB (I 5" BAGs) 3,959,999.96 495.00 8,000.00

Dell Optiplex 9020 iS Computer 643,000.00 FISHERIES !

495 .00 1,298.99 I

UPS 650 VA Epro 68,000.00 FISHERIES 495 .00 137.37

HP Laser Jet 401 D Printers 248,000.00 FISHERIES 495 .00 501.0 I

HP 5i Laptops 768,000.00 FISHERIES 495.00 1,551.52

HP 450 G I Laptops 7i 8GB500 757,250.00 HQ 495.00 1,529.80

HP MFP276 Laser Jet Color Printer 407,750.00 HQ 495.00 823.74

HP 5590 Flatbed SCANNER 233 ,000.00 HQ 495.00 470.71

L Shape Executive Office Chair Adjustable 873,750.00 495.00 1,765 .15 Executive Office Desk with Locable I ,380,525 .00 HQ 495.00 2,788.94 Upright Fridge 2 doors (200 Litres) 996,075.00 HQ 495.00 2,012.27

Steel filing cabinents 4 Drawers 699,000.00 HQ 495 .00 1,412.12

Book Shelf 5 Compartments 786,375.00 HQ 495.00 1,588.64

HP Probook Laptops 2,405,095.90 HQ 495.00 4,858.78 -Extension Cords 368,839.00 HQ 495 .00 745.13 Office Tables 920,350.00 HQ 495 .00 1,859.29 -Office Chairs 349,267.00 HQ 495.00 705.59 -Book Shelves 314,550.00 HQ 495.00 635 .45

-

TRY OF AGRJCUL TURE, IRRIGATION AND WATER DEVELOPMENT :UL TURAL SECTOR WIDE APPROACH SUPPORT PROJECT MDTF

T AGREEMENT NO. TF 016364

)F ASSETS JUNE 2015

) 002680/002681 /002945 ; 002680/002681/002945

; 003674/003675

; 003674/003675

; 003674/003675

; 003838/3816

5 003838/3816

5 003838/3816

5 003838/3816

5 003838/3816

5 003838/3816

5 004260/04068

5 004 712/004713

5 004 712/004 713

5 004 712/004 713

5 004882

5 005161 /005180

5 005161/005180

5 005228/005243

5 005228/005243

5 005257/005258 -

5 005486

02554 02554

CCL/20021

'" CCL/20021 CC'

CCL/20021

1702

1702

1702

1702

1702

1702

CTS598

VNM70582

VNM70582

VNM70582

29517

400739

400739

5306109

5306/09

2923

020061

8 Blockbuster

3 Blockbuster

I Computer Connections Ltd

2 Computer Connections Ltd

2 Computer Connections Ltd

5 Globe Electronics Ltd






II Ctech Systems

I VN Computer World & Document Centre



5 Mapanga



2 Compubyte

2 Compubyte

5 Oasis Furniture

Consumer Electronic I Services













Office Equipment 41-15

Office Equipment

Office Equipment





Office Equipment



-3 1 -

. -.... ~ ~-·--· ·--.

Visitors chairs 744,668.00 HQ 495 .00 I ,504.38

Filing cabinets 454,000.50 HQ 495 .00 917.17

APC 1500 Back Up A V 298,822.50 HQ 495 .00 603.68

External Hard Drive 152,032.50 HQ 495 .00 307.14

HP Probook 450 G I Laptop iS I ,463,007.00 HQ 495.00 2,955.57

Dell Optiplex 9020 Desktop i-5 4GB 2,912,500.00 Hqs 495 .00 5,883 .84

HP 1536 DNF Printer 1,631 ,000.00 Hqs 495 .00 3,294.95

Brother Fax Machine 699,000.00 Hqs 495 .00 1,412 .12

HP 5590 Scanner 699,000.00 Hqs 495 .00 1~412 . 12

External 500GB HOD 349,500.00 Hqs 495 .00 70606 --Sharp MX231 0 Photocopier 10,019,000.00 Hqs 495 .00 20,240.40

HP 7i 8GB Laptop 4,050,000.00 Hqs 442.00 9,162.90

Laptop 594, 150.00 Hqs 442 .00 1,344.23

UPS 168,925 .00 Hqs 442.00 382.18

External Hard Drive 75,725 .00 Hqs 442.00 171.32 .

Executive L shape Office Desk 2,500,090.00 Daes 442.00 5,656.31

HP Probook 640 Note book Laptop 623,333 .25 Hqs 442.00 1,410.26

Multi Compartment Back Pack 30,406.50 Hqs 442.00 68 .79

HP Probook 450s Laptop computers 1,332,760.00 Hqs 442.00 3,015 .29

Laptop Bags 68,036.00 Hqs 442.00 153.93

Executive Swivel High back Chairs 2,621 ,250.00 Daes 442.00 5,930.43

Sony HUE ZSE Video Camera 2,995,000.00 Daes

442.00 6,776.02

149,576,894.00 353,222.21

173,761,560.74 412,515.08



RECEIPTS AND PAYMENTS STATEMENT FOR THE YEAR ENDED 30 JUNE 2015

BANK RECONCILIATION -RBM HOLDING A/C NO. 0013006240116

MK'OOO

Balance as per bank statement

Add: Uncleared deposits

Less: Unpresented cheques (208,568, 768)

Cash book balance

Appendix V

MK'OOO

704,021,045

13,505,675

(208,568, 768)

508,957,952

MINISTRY OF AGRICULTURE AND FOOD SECURITY AGRICULTURAL SECTOR WIDE APPROACH SUPPORT PROJECT MDTF


RECEIPTS AND PAYMENTS STATEMENT FOR THE YEAR ENDED 30 JUNE 2015

BANK RECONCILIATION- NBM DESIGNATED A/C N0.1001316024

Balance as per bank statement

Exchange rate as at 30/06/15

Cash book balance in MK

Amount US$

6,458,102

463.9133

2,995,999,462

Appendix VI




COST CENTRE BALANCES

ADD's Karonga Mzuzu Kasungu Lilongwe Salima Machinga Blantyre Shire Valley

District Assemblies Karonga Mbelwa S Mbelwa N Nkhata bay Kasungu Ntchisi Nkhota -kota

Salima Lilongwe Dedza Ntcheu Balaka Neno

Machinga Zomba Chiradzulu Chikwawa Nsanje Thyolo

Mulanje Blantyre

Chitipa Likoma Rum phi Dow a Mchinji Mangochi Phalombe Mwanza

Total

MK

5,431 ,904.43 53 ,905.82

841 ,598.06 18,507,952.98 28,60 I ,425.24

I ,905 ,277.22 102,456.91

12,008,032.88

67,452,553.54

I ,079,031.50 21 ,3 13.54

I ,256,086.42 3,282.58

3,196,550.00 590,926.48

I 0,381 ,636 .30 200,290.61

1,463 ,351.10 71 ,891.48

104,357.62 3,084,050.37

26,572.31 930,982.64

3,398.21 2,94 7,684 .50

15,863 ,947.18 I ,026,541.00 9,454,423.18

167,947.20 995 ,692.38

52,869,956.60

(176,099.15) (55 , 120.00) (50,382.90) (52,0 15.46)

(8 ,589.00) (236,966.22)

(39,200.09) (307,349.93)

(925 ,722.75)

51 ,944,233 .85

Appendix VII

Documents

World Bank Documentdocuments.worldbank.org/curated/en/... · 6/30/2015 · Auditor's report Designated account Independent auditor's report ... US$37.1 million equivalent from Royal