Regional IDF Grant for Strengthening Labour Market Monitoring and Performance in the Caribbean Project: IDF Grant No TF014558 For the Period January 30,2014 to January 30, 2017 (Expressed in United States Dollars) Regional IDF Grant for Strengthening Labour Market Monitoring and Performance in the Caribbean Project: IDF Grant No TF014558 For the Period January 30,2014 to January 30, 2017 (Expressed in United States Dollars) Table of Contents Summary of project and background I Report of the independent auditors 2-4 Statement of the Sources and Uses of Funds 5 Statement of Cumulative Investments 6 Designated Account Reconciliation Statement 7 Notes to the financial statements 8-9 Report of the independent auditors on the eligibility of expenditures 10-11 Report of the independent auditors on compliance with legal agreement, laws and regulations 12-13 Evaluation of Compliance with Contractual Clauses 14-25 Regional IDF Grant for Strengthening Labour Market Monitoring and Performance in the Caribbean Project: IDF Grant No TF014558 For the Period January 30, 2014 to January 30, 2017 (Expressed in United States Dollars) Summary of project and background Program Description The University of West Indies ('the Recipient') obtained a grant from the International Bank for Reconstruction and Development ("World Bank") or ("the Bank") in the amount of six hundred eighty eight thousand United States dollars (US$688,000) for realization of the project named "Strengthening Labour Market Monitoring and Performance in the Caribbean Project", for the benefit of Anguilla, Antigua and Barbuda, the Bahamas, Barbados, Belize, Bermuda, the British Virgin Islands, the Cayman Islands, Commonwealth of Dominica, Grenada, Guyana, Jamaica, Montserrat, St. Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines, Trinidad and Tobago, and Turks and Caicos. The Grant became effective on 30 January, 2014. The objective of the Project is to improve the responsiveness of Labour market policies and programs to employment needs and challenges in select Caribbean countries through improved capacity for labour market monitoring and the establishment of information systems for improved market performance. The project consists of the following: Component 1: Enhancing Regional Cooperation to Improve Labour Market Policy and Program Performance It aims to enhance cooperation within the Caribbean region, more specifically the 16 Caribbean countries where the University of West Indies has a presence for the improvement of coordinated Labour market policies and program performance in the region through (i) the establishment of a Labour Community of Practice to ensure regular participation of countries; and (ii) the establishment of a sustainable regional strategy on Labour market monitoring in the Caribbean. Component 2: Establishing a Regional Labour Monitoring System for the Caribbean It aims to establish and strengthen Labour market monitoring in the Caribbean for improved capacity and more targeted and informed Labour market interventions in the region through (i) carrying out regional Labour market needs assessments; (ii) training of trainers on Labour market monitoring to relevant Government agencies; and (iii) design and development of a regional Labour market monitoring system. Component 3: Fiduciary Oversight It aims to ensure that the funds spent meet the objectives of the grant through sound fiduciary audit. 1 KPMG Hastings Christ Church, BB 15154 Barbados West Indies Telephone: (246) 434-3900 Fax: (246) 427-7123 P.O. Box 690C Bridgetown, Barbados Report on the Audit of the Financial Statements To the Members of the Council University of the West Indies Opinion We have audited the financial statements of the Regional IDF Grant for Strengthening Labour Market Monitoring and Performance in the Caribbean Project: IDF Grant No. TF014558 (the "Project") for the University of the West Indies Cave Hill University (the "University" or the "Recipient") which comprise the Statement of Sources and Uses of Funds, Statement of Cumulative Investments, and the Designated Account Reconciliation Statement from January 30, 2014 to January 30, 2017 and notes, comprising significant accounting policies and other explanatory information. In our opinion, the accompanying financial statements are prepared, in all material respects, in accordance with the basis of accounting described in the notes to the financial statements and in accordance with the relevant guidelines of the International Bank for Reconstruction and Development ("World Bank"). Basis for Opinion We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the University in accordance with the ethical requirements that are relevant to our audit of the financial statements in Barbados, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. 2 Independent Auditors' Report, continued To the Members of the Council University of the West Indies Cave Hill University Emphasis of Matter - Basis ofAccounting and Restriction on Use We draw attention to Note I to the financial statements, which describes the basis of accounting. The financial statements are prepared to assist the Recipient to comply with the financial reporting provisions of the Project referred to above. As a result, the financial statements may not be suitable for another purpose. Our report is intended solely for the Recipient and the World Bank and should not be used by parties other than the Recipient or the World Bank. Our opinion is not modified in respect of this matter. Responsibilities of Management and Those Charged with Governance for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with the basis of accounting described in Note 1, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement. whether due to fraud or error. In preparing the financial statements, management is responsible for assessing the Project's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Project or to cease operations. or has no realistic alternative but to do so. Those charged with governance are responsible for overseeing the Project's financial reporting process. 3 Independent Auditors' Report, continued To the Members of the Council University of the West Indies Cave 1-ill University Auditors' Responsibilities for the Audit ofthe 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 auditors' 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. A further description of the auditors' responsibilities for the audit of the financial statements is located at the Institute of Chartered Accountants of Barbados' website at: lttp://www.icab.bb/about-icab/auditing/. This description forms part of our auditors' report. Chartered Accountants Bridgetown. Barbados October 11. 2017 4 Regional IlDF Grant for Strengthening Labour Market Monitoring and Performance in the Caribbean Project: IDF Grant No TF014558 Statement of Sources and Uses of Funds For the Period January 30, 2014 to January 30, 2017 (Expressed in United States Dollars) Current Period CUMMULATIVE RECEIPTS World Bank Designated Account 487,190 487,190 Direct Payment - - Other disbursement methods - Total Receipts (A) 487,190 487,190 EXPENDITURES Component 1. Enhancing Regional 6,494 6,494 Cooperation Component 2. Establishing a Regional Labour Market Monitoring System for 139,647 139,647 the Caribbean Component 3. Fiduciary Oversight __ _ Total Expenditures (B) 146,141 146,141 Foreign Exchange Adjustment BANK BALANCES Opening Cash Balances Designated Account - Project Account - Total Opening Balance - Closing Cash Balances Designated Account - - Project Account 320,024 320,024 Total Closing Balance 320,024 320,024 Andrea McNish (University Bursar) 5 Regional IDF Grant for Strengthening Labour Market Monitoring and Performance in the Caribbean Project: IDF Grant No TF014558 Statement of Cumulative Investments For the Period January 30, 2014 to January 30, 2017 (Expressed in United States Dollars) Strengthening Labour Market Monitoring and Performing in the Caribbean - Grant # TF014558 Statement of Cumulative Investments Period from January 30, 2014 to January 30, 2017 Current Year Prior periods Categories Cumulative US$ US$ 1. Goods & Consulting Services 2. Consultant Services 92,512 92,512 3. Training & Workshops 53,629 53,629 Total 146,141 146,141 Andrea McNish (University Bursar) 6 Regional IDF Grant for Strengthening Labour Market Monitoring and Performance in the Caribbean Project: IDF Grant No TF014558 Designated Account Reconciliation Statement For the Period January 30,2014 to January 30,2017 (Expressed in United States Dollars) Loan/Credit/PPF/Cofinancier Number - TF014558 US$ 1 Total advanced by World Bank (or co-financier) 487,190 Less: Eligible Expenditure for the Current Period ended January 30, 2017 Documented by World Bank 119,920 2 Less: Cumulative Eligible Expenditure for the prior period end Documented by World Bank - 3 Present Outstanding Amount Advanced to the Designated Account (1-2) 367,270 4 Balance of USD Designated Account per Bank Reconciliation Statement as at Period End Balance of Project Account per Bank reconciliation statement as at period end January 30, 2017 320,024 5 Plus: Eligible Expenditure for the current year documented after the period end January 30, 2017 26,221 6 Plus: Total Amount withdrawn and not yet claimed - Reason: 7 Plus: Amounts claimed in previous applications not yet credited at date of bank statements Application No. WA#XXX WA # XX Subtotal of Previous Applications not yet credited 8 Less: Interest earned . 9 Total advance accounted for (No. 4 Through No. 9) 346,245 10 Difference (3-9) 21,025 11 Explanation of any difference shown in Line 10 Miscellaneous difference to be refunded to the Bank $ Andrea McNish (University Bursar) 7 Regional IDF Grant for Strengthening Labour Market Monitoring and Performance in the Caribbean Project: IDF Grant No TF014558 Notes to the Financial Statements For the Period January 30, 2014 to January 30, 2017 (Expressed in United States Dollars) 1. Significant accounting policies The significant accounting policies which were used in the preparation of the financial statements were consistently applied for the period and are as follows:- a. Basis of Preparation The Financial Statements have been prepared in accordance with International Financial Reporting Standards (IFRS) and interpretations issued by the International Accounting Standards Board. b. Functional currency The Project's accounting records are maintained in both United States dollars and Barbados dollars, with United States dollars being the presentation currency. Transactions in foreign currency are translated at the approximate rate ruling at the date of the transactions. c. Reporting period This report covers the period of use of the Grant funds for the period from January 30, 2014 to January 30, 2017. 2. Cash balance on project accounts The closing balance in the designated account is NIL. Cash balances on project accounts at the reporting date are US$320,024 3. Designated Account a) In accordance with the Disbursement letter, the Designated Account was established to deposit advances withdrawn to facilitate eligible expenditure. During the period under review, advances made by the World Bank to the Designated Account amounted to US$487,190. b) During the period under review, disbursements were made for a total amount of US$146,141 as follows: i) Documented Expenditure for a total sum of U$119,920 ii) Expenditure made during current period under review after January 30, 2017 for a total of US$26,221. 8 Regional IDF Grant for Strengthening Labour Market Monitoring and Performance in the Caribbean Project: IDF Grant No TF014558 Notes to the Financial Statements, continued For the Period January 30, 2014 to January 30, 2017 (Expressed in United States Dollars) 4. Sources and Uses of Funds The Statement of Sources and Uses of Funds shows a detailed breakdown of funds received and expended for the period under review. 5. Subsequent event note Subsequent to the period end, funds totalling $341,049 were returned to the World Bank. This balance was comprised of $320,024 which was the closing balance as per the Statement of Sources and Uses of Funds and the difference of $21,025 which was identified on the Designated Account Reconciliation Statement. 9 KPMG Hastings Christ Church, BB 15154 Barbados West Indies Telephone: (246) 434-3900 Fax: (246) 427-7123 P.O. Box 690C Bridgetown, Barbados Report on Findings related to the Eligibility of Expenditures Independent Auditors' Opinion To: To the Members of the Council University of the West Indies We have audited the financial statements of the Regional IDF Grant for Strengthening Labour Market Monitoring and Performance in the Caribbean Project: IDF Grant No. TFO 14558 (the "Project") for the University of the West Indies (the "University") or (the "Recipient") which comprise the Statement of Sources and Uses of Funds, Statement of Cumulative Investments, Designated Account Reconciliation Statement from January 30, 2014 to January 30, 2017, notes, comprising significant accounting policies and other explanatory information and have issued our report thereon dated October I1, 2017. This report on the eligibility of expenditure complements our opinion on the referenced financial statements. The payments reported are eligible for financing under the Grant Agreement and are deemed to be eligible expenditure. KPMG agreed the expenditure to supporting documentation e.g. invoices, correspondence etc. on a test basis to determine whether the expenses submitted to the World Bank by the Recipient were accurate. In our opinion, we were not aware of any instances of ineligible expenditure regarding the project financed by the International Bank for Reconstruction and Development ("World Bank") and managed by the University of the West Indies 10 Independent Auditor's Report on Compliance, continued This report is intended for the information of Recipient and the World Bank. However, upon release by the World Bank, this report is a matter of public record and its distribution is not limited. Chartered Accountants Bridgetown. Barbados October 11. 2017 11 KPMG Hastings Christ Church, BB 15154 Barbados West Indies Telephone: (246) 434-3900 Fax: (246) 427-7123 P.O. Box 690C Bridgetown, Barbados Independent Auditor's Report on Compliance To: To the Members of the Council University of the West Indies We have audited the Statement of Sources and Uses of Funds, Statement of Cumulative Investments. Designated Account Reconciliation Statement of the Regional IDF Grant for Strengthening Labour Market Monitoring and Performance in the Caribbean Project: IDF Grant No. TF014558 (the "Project") for the University of the West Indies (the "University" or the "Recipient") and financed by the International Bank for Reconstruction and Development ("World Bank") from January 30, 2014 to January 30. 2017 and have issued our report thereon dated October 11, 2017. In relation to our audit, we determined compliance with the financial and accounting contractual clauses and articles within the Agreement and the accompanying Annex and the Standard Conditions for Grants Made by the World Bank out of Various Funds and compliance with the applicable provisions of these conditions as of January 30. 2017. We have examined the Standard Conditions, and the provisions established in the Annex to the Grant Agreement. We conducted our audit in accordance with International Standards on Auditing and the requirements of the World Bank. Those standards require that we plan and perform the audit to obtain reasonable assurance that the University of the West Indies has complied with the pertinent contractual clauses, applicable laws and regulations, and the provisions contained in the Grant Agreement. The audit includes examining, on a test basis, the appropriate evidence. We believe that our audit provides a reasonable basis for our opinion. 12 Independent Auditor's Report on Compliance, continued In our opinion, except for matters stipulated in the management letter and the reported findings within the evaluation of compliance with contractual clauses on compliance with the financial and accounting contractual clauses, we were not aware of any instances or acts of non-compliance that occurred or any violations on the part of the University of the West Indies with respect to such financial and accounting clauses and conditions of the Regional IDF Grant for Strengthening Labour Market Monitoring and Performance in the Caribbean Project: IDF Grant No. TFO 14558 and with applicable laws and regulations for the Project. This report is intended for the information of Recipient and the International Bank for Reconstruction and Development ("World Bank"). However, upon release by the World Bank, this report is a matter of public record and its distribution is not limited. Chartered Accountants Bridgetown, Barbados October 11, 2017 13 Evaluation of Compliance with Contractual Clauses Stipulations of Regional IDF Grant for Strengthening Labour Market Monitoring and Performance in the Caribbean Project: IDF Grant No. TF014558 Section Section Details Audit Approach Findings Grant Agreement 2.03 (a) Institutional and Other Arrangements For purposes of carrying KPMG performed The Recipient noted that out the Project, the inquires of qualifications, Recipient shall maintain management and experience, functions and the UOPD at all times requested supporting responsibilities of key with key personnel with documentation for personnel were evaluated qualifications, review. by the World Bank prior experience, functions to awarding the Grant. and responsibilities satisfactory to the World Bank. 2.03 (b) For purposes of carrying KPMG performed The Recipient executed out the Project, the inquires of these tasks in keeping Recipient shall ensure management and with its Financial Code that the UOPD carries requested supporting and Rules and regulations out the financial documentation for governing procurement. management and review. procurement functions Annual audits were not under the grant prepared in accordance including the with the Grant responsibility of the Agreement. UOPD to hire an external firm for the annual audit. 2.04 Project Monitoring, Reporting and Evaluation The Recipient shall KPMG performed According to the monitor and evaluate inquiries of agreement this the progress of the management and requirement is based Project and, upon the requested supporting upon a request from the World Bank's request, documentation for World Bank. prepare Project Reports, review. in accordance with the KPMG received one provisions of Section progress report dated 2.06 of the Standard October 2015. Conditions and on the 14 Evaluation of Compliance with Contractual Clauses Stipulations of Regional IDF Grant for Strengthening Labour Market Monitoring and Performance in the Caribbean Project: IDF Grant No. TF014558 Section Section Details Audit Approach Findings basis of indicators acceptable to the World Bank. Each Project Report shall cover such period as shall be indicated in the World Bank's request and shall be furnished to the World Bank not later than one month after the date of such request. 2.04 (b) The Recipient shall, upon KPMG performed According to the the World Bank's inquires of agreement this request, prepare the management and requirement is based Completion requested supporting upon a request from the Report in accordance documentation for World Bank. with the provisions of review. Section 2.06 of the The Recipient indicated Standard Conditions. The that no requests were Completion Report shall received for the be furnished to the submission of a World Bank not later Completion Report. than five months after the Closing Date. 2.05 Financial Management The Recipient shall KPMG performed Interim Financial Reports ensure that interim inquires of (IFRs) were received from unaudited financial management and the Recipient. It was reports for the Project reviewed supporting noted that IFRs were are prepared and documentation. prepared for the periods furnished to the World ended January 2015, Bank not later than 2016 and 2017. forty-five (45) days after the, end of However, KPMVG was each calendar semester, unable to verify that they covering the semester, in were submitted as stated form and substance in the Agreement. This satisfactory to the World was due to our inability Bank. to review the submission date since the Recipient no longer has access to the information which the CosingDate Evaluation of Compliance with Contractual Clauses Stipulations of Regional IDF Grant for Strengthening Labour Market Monitoring and Performance in the Caribbean Project: IDF Grant No. TF014558 Section Section Details Audit Approach Findings was archived on the web portal. The Recipient did not retain printed or scanned copies of the submissions for verification of compliance with the required submission dates. 2.05 The Recipient shall have KPMG performed Annual audited financial the Financial Statements inquires of statements were not of the Project audited in management and submitted in accordance accordance with the reviewed supporting with the Standard provisions of Section documentation. Conditions. 2.07 (b) of the Standard Conditions; Each such The period under review audit of the Financial covers the period from Statements shall cover inception to the date of the period of one fiscal completion of the year of the Recipient. Project. The audited Financial Statements for each such period shall be furnished to the World Bank not later than six months after the end of such period. 2.06 Procurement The provisions of this KPMG performed The Recipient did not Section, as the same inquires of provide a Procurement shall be elaborated in management and Plan for review. the procurement plan requested supporting prepared and updated documentation for from time to time by the review. Recipient for the Project in accordance with paragraph 1.18 of the Procurement Guidelines and paragraph 1.25 of the Consultant Guidelines ("Procurement Plan"). 16 Evaluation of Compliance with Contractual Clauses Stipulations of Regional IDF Grant for Strengthening Labour Market Monitoring and Performance in the Caribbean Project: IDF Grant No. TF014558 Section Section Details Audit Approach Findings 2.06 c) Particular Methods of KPMG performed Inquiries with Procurement of Goods inquires of Management indicated and Non-consulting management and that procurement Services. Goods shall be requested supporting procedures were in procured under documentation for keeping with the contracts awarded on review. Recipient's established the basis of: (A) processes. Shopping; and (B) Direct Contracting... The Recipient indicated ...E) the procurement that were no contracts plan shall be subject to entered into during the the World Bank's Prior period under review. review. No supporting evidence was presented to confirm that the World Bank approved the use Recipient's established processes. 3.01 Eligible Expenditures The Recipient may KPMG performed KPMG noted that the withdraw the proceeds inquires of funds were withdrawn in of the Grant in management and the currency of the Grant accordance with the reviewed supporting which is United States provisions of: (a) Article documentation. Dollars. Ill of the Standard Conditions; (b) this The expenses were Section; and appropriately categorized (c) such additional assetforth in the instructions as the World Agreement. Bank may specify by notice to the Recipient The Recipient confirmed (including the "World that no additional Bank Disbursement instructions were Guidelines for Projects" provided by the World dated May 2006, as Bank. revised from time to time by the World Bank and as made applicable to this Agreement pursuant to such instructions), to finance rEligible Expenditures as 17 Evaluation of Compliance with Contractual Clauses Stipulations of Regional IDF Grant for Strengthening Labour Market Monitoring and Performance in the Caribbean Project: IDF Grant No. TF014558 Section Section Details Audit Approach Findings set forth in the following table. 3.02 Withdrawal Conditions Notwithstanding the KPMG performed No drawdowns were provisions of Section inquires of made by the Recipient 3.01 of this Agreement, management and prior to the date of the no withdrawal shall be reviewed supporting signed Agreement. made for payments documentation. made prior to the date of countersignature of this Agreement by the Recipient. 3.03 Withdrawal Period The Closing Date KPMG obtained and The Closing Date has referred to in Section reviewed the signed been identified as 3.06 (c) of the Standard Agreement to verify January 30, 2017. Conditions is three years the Closing Date. after the date of countersignature of this Agreement by the Recipient. Disbursement Letter II - Withdrawal of Grant (i) Authorized Signatures KPMG performed A letter dated March 18, Proceeds (subsection 3.1). A letter inquires of 2014 detailing the in the Form attached management authorized signatures (Attachment 2) should reviewed supporting was submitted to the be furnished to the documentation. World Bank. World Bank at the address indicated below providing the name(s) and specimen signature(s) of the official(s) authorized to submit Applications Subsection 3.5 Minimum Value of KPMG performed It was noted that the Applications (subsection inquires of amounts of the 3.5). The Minimum Value Management and drawdowns were in of Applications for requested copies of excess of the stated USD the Applications which 50,000. 18 Evaluation of Compliance with Contractual Clauses Stipulations of Regional IDF Grant for Strengthening Labour Market Monitoring and Performance in the Caribbean Project: IDF Grant No. TF014558 Section Section Details Audit Approach Findings Reimbursements and were submitted for KPMG was unable to Direct Payments is USD review. review the Applications 50,000. on the portal since the applications were archived on the portal. Advances (sections 5 and * Type of Designated/ KPMG performed During testing it was 6). Account(s) (subsection inquiries of noted that funds were 5.3): Pooled. management and deposited to the * Currency of Designated reviewed supporting designated account at Account(s)/ documents. Citibank (subsection5.4): USD. * Financial /institution at which the Designated Account(s) Will Be Opened (subsectioll 5.5): Citibank. * Ceiling (subsection 6.1): forecast for 2 periods as provided in the semiannual Interim Financial Report. 19 Evaluation of Compliance with Contractual Clauses Stipulations of Regional IDF Grant for Strengthening Labour Market Monitoring and Performance in the Caribbean Project: IDF Grant No. TF014558 Section Section Details Audit Approach Findings Standard Conditions for Grants made by the World Bank out of Various Funds Section 2.05 The Recipient shall KPMG performed KPMG observed that the ensure that inquires of Recipient adequately (a) Records are management and accounted for the maintained adequate requested supporting expenses associated with to record the progress documentation for the Project and retained of the Project (including review. Record the supporting its cost and the keeping for the documentation. benefits to be derived Project was examined from it), to identify the with regard to the goods, works and accounting for the services financed out of Project costs. the proceeds of the Grant and to disclose their use in the Project, and such records are fuRrnished toethe World Bank promptly upon Its request Section 2.06 (a) The Recipient shall KPMG performed The Recipient noted that (a) ensure the inquiries of the World Bank accepted maintenance of policies management and that the established and procedures requested supporting procedures of the adequate to enable it to documentation for Recipient were monitor and evaluate on review. acceptable. an ongoing basis, in accordance with No supporting indicators acceptable to documentation was the World Bank, the obtained for our review progress of the Project to corroborate this. and the achievement or its objectives; Section 2.06 (b) (i) The Recipient shall KPMG performed One Project Report dated (A) ensure the inquires of October 2015 was preparation and delivery management and provided for our review. to the World Bank or requested supporting one or more project documentation for reports ("Project review. Reports"), in form and 20 Evaluation of Compliance with Contractual Clauses Stipulations of Regional IDF Grant for Strengthening Labour Market Monitoring and Performance in the Caribbean Project: IDF Grant No. TF014558 Section Section Details Audit Approach Findings substance satisfactory to the World Bank, integrating the results of such monitoring and evaluation activities and setting out measures recommended by the Recipient to ensure the continued efficient and effective execution or the Project, and to achieve the Project's objectives. Section 2.06 (ii) The Recipient shall KPMG performed The Recipient indicated ensure the preparation inquires of that no requests were and delivery to the management and received for the World Bank, not later requested supporting submission of a than the date specified documentation for Completion Report. for that purpose in the review. Grant Agreement, of one or more completion reports ("Completion Reports"): (A) of such scope and in such detail as the World Bank shall reasonably request, on the execution of the Project, the performance by the Recipient and the World Bank of their respective obligations under the Grant Agreement and the accomplishment of the purposes of the Grant; and (B) a plan designed to ensure the sustainability of the Project's achievements. Section 2.07 (a) A financial management KPMG performed A financial management system is maintained inquiries and system was maintained and financial observation, throughout the project 21 Evaluation of Compliance with Contractual Clauses Stipulations of Regional IDF Grant for Strengthening Labour Market Monitoring and Performance in the Caribbean Project: IDF Grant No. TF014558 Section Section Details Audit Approach Findings statements ("Financial and financial statements Statements') are ("Financial Statements') prepared in accordance are prepared in with consistently accordance with applied accounting consistently applied standards acceptable to accounting standards. the World Bank, both in a manner adequate to reflect the operations, resources and expenditures related to the Project Section 2.07 (b) If so required in KPMG performed One audit was conducted accordance with the inquires of for the duration of the provisions of the Grant management and Project rather than Agreement: (i) the requested supporting periodic audits of the Financial Statements are documentation for financial statements. periodically audited by review. independent auditors The financial statements acceptable to the World were not submitted in Bank, in accordance with accordance with the date consistently applied specified in the Grant auditing standards Agreement. acceptable to the World Bank; and (ii) the Financial Statements, as so audited, are furnished to the World Bank not later than the date specified in the Grant Agreement for that purpose, together with such other information concerning the audited Financial Statements and such auditors, as the World Bank may from time to time reasonably request. 22 Evaluation of Compliance with Contractual Clauses Stipulations of Regional IDF Grant for Strengthening Labour Market Monitoring and Performance in the Caribbean Project: IDF Grant No. TF014558 Section Section Details Audit Approach Findings Section 3.04 (b) The Recipient shall KPMG performed A letter dated March 18, furnish to the World inquires of 2014 detailing the Bank: (i) evidence management and authorized signatures satisfactory to the World requested supporting was submitted to the Bank of the authority of documentation for World Bank. the person or persons review. authorized to sign each Application and the authenticated specimen signature of each such person; and (ii) such documents and other evidence in support of each Application as the World Bank shall specify, whether before or after the World Bank has permitted any withdrawal requested in the Application ("Supporting Evidence"). Section 3.04 ( c) Each Application for an KPMG performed The monies received amount of the Grant, inquires of equated to monies and its Supporting management and requested which were Evidence, must be requested supporting supported by the IFRs. sufficient in form and documentation for substance to satisfy the review. KPMG was unable to World Bank that the review the applications Recipient is entitled to submitted via the web withdraw such amount portal as the information from the Grant Account, has been archived and and that such amount scanned or printed copies will be used only for the were not retained. purposes specified in the Grant Agreement. Applications shall be made promptly in relation to Eligible Expenditures. Section 3.06 The Recipient shall KPMG performed The requirements for ensure that the tests to verify whether eligible expenditures proceeds of the Grant the requirements for were met. 23 Evaluation of Compliance with Contractual Clauses Stipulations of Regional IDF Grant for Strengthening Labour Market Monitoring and Performance in the Caribbean Project: IDF Grant No. TF014558 Section Section Details Audit Approach Findings arc used exclusively to eligible expenditures finance expenditures were met. which, except as otherwise provided in the Grant Agreement, satisfy the following requirements for "Eligible Expenditures" Section 4.05 If the World Bank KPMG performed The Recipient indicated determines that an inquires of that this did not occur. amount of the Grant has management and been used in a manner requested supporting During testing no inconsistent with the documentation for instances of funds used in provisions of the Grant review. an inconsistent manner Agreement or these were identified. Standard Conditions, the Recipient shall, upon notice by the World Bank to the Recipient, promptly refund such amount to the World Bank. Such inconsistent use shall include, without limitation: (i) use of such amount to make a payment for an expenditure that is not an Eligible Expenditure (ii)engaging in corrupt, fraudulenta collusive or coercive practices in connection with the use of such amount, or(B)use orsuch amount to finance a contract during the procurement or execution of' which such 24 Evaluation of Compliance with Contractual Clauses Stipulations of Regional IDF Grant for Strengthening Labour Market Monitoring and Performance in the Caribbean Project: IDF Grant No. TF014558 Section Section Details Audit Approach Findings practices were engaged in by representatives or the Recipient (or the Member Country, if the Recipient is not the Member Country, or other recipient of such amount of the Grant), in either case without the Recipient (or Member Country, or other such recipient) having taken timely and appropriate action satisfactory to the World Bank to address such practices when they occur. 25