18th December, 2009 Office of the Prime Minister NACMs. Shiyan Chao Level 4, Victoria Office Suites Senior Health Economist W B - d 8 8,>7 World Bank t.. .Sn,)"C--. .! 14 -17 Victoria Square i Port of Spain Trini(lad andTobago w.I. Dear Ms. Chao Re: Audited Financial Statements for the year ending 30th September, 2009 or 623-9661 IBRD Loan No. 7184- TR Fax: 1(868) 624-6495 E-mail: nacc@nacc.govtt Submitted for your information are the audited financial statements for the IBRD Loan No. 7184 - TR for the year ending 30th September, 2009. Respectfully, Carol-Ann Senah (Mrs.) Technical Director NACC PKF Chartered Accountants & Business Advisors NATIONAL AIDS COORDINATING COMMITTEE HIV/AIDS PREVENTION AND CONTROL PROJECT IBRD LOAN NO. 7184-TR 30 SEPTEMBER 2009 FCrpssion No. / ir qfrq T;t litWfY47 r F c i ~~6~r /-tri\< . d Chartered Accountants & Business Advisors NATIONAL AIDS COORDINATING COMMITTEE HIV/AIDS PREVENTION AND CONTROL PROJECT IBRD LOAN NO. 7184-TR TABLE OF CONTENTS INDEPENDENT AUDITORS' OPINION ........................................... I STATEMENT OF TOTAL SOURCES AND TOTAL APPLICATION OF FUNDS ..................... 3 NOTES TO THE FINANCIAL STATEMENTS ................................. 7 PKF Chartered Accountants & Business Advisors INDEPENDENT AUDITORS' OPINION To: Permanent Secretary Office of the Prime Minister National AIDS Coordinating Committee HIV/AIDS Prevention and Control Project International Bank for Reconstruction and Development (IBRD) Loan No. 7184-TR We have audited the accompanying Statement of Total Sources and Total Application of Funds for the HIV/AIDS Prevention and Control Project executed by the Office of the Prime Minister, National AIDS Coordinating Committee (NACC) and financed with funds from IBRD Loan No. 7184-TR, and local counterpart funds from the Government of the Republic of Trinidad and Tobago (GORTT) as of and for the year ended 30 September 2009. These statements are the responsibility of the NACC. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing, issued by the International Federation of Accountants (IFAC) and the International Bank for Reconstruction and Development's requirements. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the NACC, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. As described in Note 3, the Statement of Total Sources and Total Application of Funds was prepared using the cash basis of accounting, which is another comprehensive basis of accounting other than generally accepted accounting principles. Direct tel (868) 624-4569 I Direct fax (868) 624-4388 Email pkf-trinidad@trinidad.net PKF i 245 Belmont Circular Road PO Bag 250 Belmont i Port-of-Spain S Trinidad I WI Partners AinsleyA. Mark j Michael G Toney Rene6Lisa Philip C Mark K. Superville PKF Chartered Accountants & Business Advisors INDEPENDENT AUDITORS' OPINION (CONTINUED) In our opinion, the financial statements referred to above, present fairly in all material respects the Cash Received and Disbursements Made and the Cumulative Investments for the National AIDS Coordinating Committee as of and for the year ended 30 September 2009, in accordance with the basis of accounting described in Note 3 and the terms of IBRD Loan No. 71 84-TR. 19 November 2009 Port of Spain Trinidad and Tobago 2. National AIDS Coordinating Committee HIV/AIDS Prevention and Control Project IBRD Loan No. 7184-TR Statement of Total Sources and Total Application of Funds For the year ended 30 September 2009 (Expressed in Trinidad and Tobago Dollars) Fiscal Year Fiscal Year Fiscal year Fiscal year Fiscal year Fiscal year Project 2009 2008 2007 2006 2005 2004 Cumulative Income Income Income Income Income Income Income Oct 08 - Sept 09 Oct 07 - Sept 08 Oct 06-Sept 07 Oct 05-Sept 06 Oct 04-Sept 05 Oct 03-Sept 04 Oct 03-Sept 09 Notes $ $ $ $ $ $ $ 5. Sources of Funds Disbursements claimed from the World Bank 12,391,251 10,071,823 24,411,776 15,357,565 2,732,211 - 64,964,626 Release less disbursements claimed 7,885,749 28,767,991 4,540,654 11,571,512 13,067,789 3,666,177 69,499,872 5. (a) Government of the Republic of Trinidad and Tobago 20,277,000 38,839,814 28,952,430 26,929,077 15,800,000 3,666,177 134,464,498 5. (b) World Bank Project (Other Ministry reimbursements) - 7,287,597 8,903,922 11,278,143 - 3,442,632 30,912,294 World Bank front end fee - 1,252,000 1,252,000 5. (c) UNDP - 765,323 765,323 5. (d) UNAIDS - - 20,122 - 20,122 5. (e) Lutheran Medical Centre - - - 91,719 - 91,719 5. (e) Private Business Support - - - 27,525 67,185 94,710 Total Sources of Funds 20,277,000 46,127,411 37,856,352 38,227,342 15,919,244 9,193,317 167,600,666 3. National AIDS Coordinating Committee HIV/AIDS Prevention and Control Project IBRD Loan No. 7184-TR Statement of Total Sources and Total Application of Funds For the year ended 30 September 2009 (Expressed in Trinidad and Tobago Dollars) Fiscal Year Fiscal Year Fiscal year Fiscal year Fiscal year Fiscal year Project 2009 2008 2007 2006 2005 2004 Cumulative Expenditure Expenditure Expenditure Expenditure Expenditrue Expenditure Expenditure Oct 08 - Sept 09 Oct 07 - Sept 08 Oct 06-Sept 07 Oct 05-Sept 06 Oct 04-Sept 05 Oct 03-Sept 04 Oct 03-Sept 09 Notes $ $ $ $ $ $ $ 6. Application of Funds 6. (a) Prevention in the Spread of HIV/AIDS Promotion of safe and healthy sexual behaviours among the general population. 3,006,262 10,377,384 7,050,370 14,389,463 7,178,894 981,829 42,984,202 Improve the availability and accessibility of condoms. 2,431,012 65,652 550,880 1,018,410 373,799 148,580 4,588,333 Promotion of healthy sexual attitudes, behaviour and practices among vulnerable/high risk groups. 1,216,165 1,304,527 1,481,197 2,116,090 879,158 7,867 7,005,004 Increase the population knowledge of its serostatus. 106,822 229,616 209,394 1,428,545 58,800 - 2,033,177 Reduce probability of post exposure infection. - - 166,982 281,498 448,480 To improve the management and control of CSTIs. 77,450 - - 185,926 - 263,376 Total Prevention in the Spread of HIV/AIDS 6,837,711 11,977,179 9,291,841 19,305,416 8,772,149 1,138,276 57,322,572 6. (b) Treatment, Care and Support Implement a national system for the clinical management and treatment of HIV/AIDS. 426,732 7,639,837 9,970,426 11,970,606 494,875 3,145,982 33,648,458 To create an environment that supports the infected and affected. 549,485 39,600 424,778 290,420 191,600 - 1,495,883 Total Treatment, Care and Support 976,217 7,679,437 10,395,204 12,261,026 686,475 3,145,982 35,144,341 4. National AIDS Coordinating Committee HIV/AIDS Prevention and Control Project IBRD Loan No. 7184-TR Statement of Total Sources and Total Application of Funds For the year ended 30 September 2009 (Expressed in Trinidad and Tobago Dollars) Fiscal Year Fiscal Year Fiscal year Fiscal year Fiscal year Fiscal year Project 2009 2008 2007 2006 2005 2004 Cumulative Expenditure Expenditure Expenditure Expenditure Expenditrue Expenditure Expenditure Oct 08 - Sept 09 Oct 07 - Sept 08 Oct 06-Sept 07 Oct 05-Sept 06 Oct 04-Sept 05 Oct 03-Sept 04 Oct 03-Sept 09 Notes $ $ $ $ $ $ $ 6. (c) Advocacy and Human Rights Reduce stigma and discrimination against people living with HIV/AIDS 122,820 - 40,756 650,450 78,830 892,856 Ensure human rights for people living with AIDS and other groups affected by HIV/AIDS 120,100 184,438 103,950 - 408,488 Total Advocacy and Human Rights 242,920 184,438 144,706 650,450 78,830 - 1,301,344 6. (d) Surveillance and Research Strengthen the surveillance systems for CSTI/HIV/AIDS. 8,132,482 13,927,509 10,718,937 - 4,270 32,783,198 To undertake and participate in effective clinical and behavioural research on HIV/AIDS. - 3,157 1,142,034 1,266,239 32,999 - 2,444,429 Total Surveillance and Research 8,132,482 13,930,666 11,860,971 1,266,239 32,999 4,270 35,227,627 5. National AIDS Coordinating Committee HIV/AIDS Prevention and Control Project IBRD Loan No. 7184-TR Statement of Total Sources and Total Application of Funds For the year ended 30 September 2009 (Expressed in Trinidad and Tobago Dollars) Fiscal Year Fiscal Year Fiscal year Fiscal year Fiscal year Fiscal year Project 2009 2008 2007 2006 2005 2004 Cumulative Expenditure Expenditure Expenditure Expenditure Expenditrue Expenditure Expenditure Oct 08 - Sept 09 Oct 07 - Sept 08 Oct 06-Sept 07 Oct 05-Sept 06 Oct 04-Sept 05 Oct 03-Sept 04 Oct 03-Sept 09 Notes $ $ $ $ $ $ $ 6. (e) Programme Management, Coordination and Evaluation Develop and appropriate management structure for the National Expanded Response. 3,832,623 5,793,203 4,599,103 4,238,121 5,136,277 3,019,576 26,618,903 Monitor the implementation of the expanded response. 105,267 147,593 61,941 39,404 - 354,205 To build capacity among critical stakeholders in the Expanded National Response. - 204,397 413,419 263,948 881,764 Launch of the National Strategic Plan. - 1,150 318,065 319,215 Consulting services related to the World Bank Mid-term Review. - 6,106 - 6,106 Total Programme Management, Coordination and Evaluation 3,937,890 5,940,796 4,865,441 4,698,200 5,136,277 3,601,589 28,180,193 7. Exchange Rate Difference - - - (6,855) 8. World Bank Front End fee - 1,259,940 - - - 1,259,940 TOTAL EXPENSES 20,127,220 39,712,516 37,818,103 38,181,331 14,706,730 7,890,117 158,429,162 Differences in Sources less Application of Funds 149,780 Approved by: CL'person, NACC //Deputy Permanent Secretary Office of the Prime Minister 6. NATIONAL AIDS COORDINATING COMMITTEE HIV/AIDS PREVENTION AND CONTROL PROJECT IBRD LOAN NO. 7184-TR Notes to the Financial Statements For the year ended 30 September 2009 Background The Government of the Republic of Trinidad and Tobago (GORTT) in its effort to prevent and control the spread of the HIV/AIDS epidemic has developed a five-year National Strategic Plan (2004-2008) as the guide to Trinidad and Tobago National Response to HIV/AIDS. In June 2003, the GORTT successfully negotiated a US$20 million loan from the World Bank to support the implementation of its HIV/AIDS National Strategic Plan (NSP). The loan was approved by the World Bank and the Loan Agreement was signed by the Minister of Finance on 27 June 2003 with loan effectiveness being achieved on 27 December 2003. The HIV/AIDS Prevention and Control Project is currently being funded from two sources, the World Bank (US$20 million) contribution and the GORTT (US$5 million) contribution. The HIV/AIDS Prevention and Control Project contributes to the implementation of the expanded National Response which sets out the fundamental principles, the broad tactical approach as well as the detailed strategies necessary to move the country from the current situation to its desired position. It is important to state that the World Bank funded Project had its genesis in the NSP which has two (2) overarching goals and five (5) Priority Areas. The two overarching goals are: 1. To reduce the incidence of HIV infections in Trinidad and Tobago; and 2. To mitigate the negative impact of HIV/AIDS on persons affected in Trinidad and Tobago. The GORTT's national expanded strategic response to HIV/AIDS is being executed under the following five (5) Priority Areas over the five year period: * Priority Area I Prevention * Priority Area II Treatment, Care and Support * Priority Area III Advocacy and Human Rights * Priority Area IV Surveillance and Research * Priority Area V Programme Management, Coordination and Evaluation 7. NATIONAL AIDS COORDINATING COMMITTEE HIV/AIDS PREVENTION AND CONTROL PROJECT IBRD LOAN NO. 7184-TR Notes to the Financial Statements For the year ended 30 September 2009 1. Background (Cont'd) The GORTT is fully committed to the implementation of its NSP and has placed both the responsibility for the management and results of the National Response directly under the Office of the Prime Minister. The National AIDS Coordinating Committee (NACC) and its Secretariat, which includes the Project Coordinating Unit is under the governance of the Office of the Prime Minister and is fully accountable to the Cabinet for project results. The NACC comprises many HIV/AIDS stakeholder groups including public and private institutions, NGO's, PLWAS, health care providers and civil society. The implementation of the NSP over five (5) years is estimated to cost US$90 million. The World Bank, by letter dated 9 November 2009, amended the loan agreement to extend the Project from 31 December 2009 to 30 September 2010 in order to facilitate the following: i) Refurbishment of the medical laboratory for the installation of the viral load machine and purchase of CD4 and viral load reagents; and ii) Purchase of Anti retroviral medication. 2. Accounting Period The Project's financial statements relate to the period 1 October 2008 to 30 September 2009. Comparative figures depict the cumulative position from project commencement in October 2003. 3. Basis of Preparation These financial statements have been prepared under the historic cost convention in accordance with the cash basis of accounting which is a comprehensive basis of accounting other than generally accepted accounting principles. No account has been taken of the effects of inflation. 8. NATIONAL AIDS COORDINATING COMMITTEE HIV/AIDS PREVENTION AND CONTROL PROJECT IBRD LOAN NO. 7184-TR Notes to the Financial Statements For the year ended 30 September 2009 4. Significant Accounting Policies (a) Reporting currency These accounts are presented in Trinidad and Tobago dollars, except where otherwise stated. (b) Foreign currency translation All foreign currency transactions with the World Bank and other parties during the year are translated at the exchange rate prevailing at the date of the transaction. (c) Fixed assets Fixed assets are stated at cost. No depreciation is charged on fixed assets. This is not in accordance with International Financial Reporting Standards. 5. Sources of Funds: Sources of funds represent the total value of resources utilized by the National AIDS Coordinating Committee. This includes budgetary allocations from the Ministry of Finance, draw downs on the World Bank Loan reimbursing GORTT, expenditure from both with the NACC and Government Ministries and other sources of funds paid to the NACC from other entities including international NGOs and private sector entities. There is a separate external audit of the EU grant funds and, as such, expenditure from this funding source is not included in this report. (a) Releases from Government GORTT released to the NACC for the fiscal year 2009 $20,277,000 made up as follows: Recurrent transfers $ 277,000 Development Programme (including refunds) 20,000,000 $20,277,000 9. NATIONAL AIDS COORDINATING COMMITTEE HIV/AIDS PREVENTION AND CONTROL PROJECT IBRD LOAN NO. 7184-TR Notes to the Financial Statements For the year ended 30 September 2009 5. Sources of Funds (Cont'd) (b) World Bank Project (Other Ministry Reimbursements) i) There were no Other Ministry Reimbursements recorded for the fiscal period. ii) All draw downs on the World Bank Loan are made to the GORTT Consolidated Fund. (c) UNDP UNDP was charged with supporting the operation of the NACC from start up of operations until January 2004. The figure of $765,323 represents the element of expenditure that was not allowable for reimbursement under the conditions of the Loan Agreement for the GORTT counterpart percentage. (d) UNAIDS UNAIDS made a contribution towards the cost of supporting the attendance of the Trinidad and Tobago Delegation to the XVI World HIV/AIDS Conference in Toronto, Canada, 13 - 18 August 2006. (e) Other sources of funding A total of $186,429 has been received since the commencement of the HIV/AIDS Project from either international NGOs or the private sector for support in the fight against HIV/AIDS. 10. NATIONAL AIDS COORDINATING COMMITTEE HIV/AIDS PREVENTION AND CONTROL PROJECT IBRD LOAN NO. 7184-TR Notes to the Financial Statements For the year ended 30 September 2009 6. Application of Funds Expenditure on HIV/AIDS that is made by the NACC, or by other Government Ministries but which is reimbursable under the World Bank Loan is classified according to the criteria as set out in the Five-Year HIV/AIDS National Strategic Plan. Expenditure by other Ministries on HIV/AIDS is only included with the Application of Funds Statement if the expenditure is reimburseable by the World Bank. (a) Prevention i) Total expenditure for the year is $6,837,711 with the majority of the expenditure being geared towards the promotion of safe and healthy sexual behaviours among the general population. Activities include: 1. Promotion of HIV and AIDS Information and Education (IEC) based around community events for example, World AIDS Day, Carnival and AIDS Candlelight Memorial. 2. Production of HIV and AIDS FAQ's booklets. 3. Assessment of IEC activities. 4. Commencement of national condom social marketing campaign. ii) The NACC has supported the NGO Community working in the fight against HIV/AIDS with payments as summarized below: 2009 2008 Total payment to NGOs $ 1,2161 $ 1052 11. NATIONAL AIDS COORDINATING COMMITTEE HIV/AIDS PREVENTION AND CONTROL PROJECT IBRD LOAN NO. 7184-TR Notes to the Financial Statements For the year ended 30 September 2009 6. Application of Funds (Cont'd) (b) Treatment Care and Support Total expenditure for the year is $976,217. Activities that have been undertaken by the NACC are: 1. Consultancy on home care services. 2. Grants to NGO's involved in treatment, care and support. 3. Functional Consultant for the Trinidad Public Health Laboratory. 4. Refurbishment costs of health clinics offering VCT. (c) Advocacy and Human Rights Total expenditure for the year is $242,920. This amount includes the initial phase of the establishment of a Human Rights Desk whereby persons are able to seek redress. (d) Surveillance and Research Total expenditure for the year is $8,132,482 and relates to the following activities: 1. NGO Monitoring and Evaluation Consultancy. 2. HIV and AIDS Research Symposium. 3. The cost of the first five deliverables of the HIV/AIDS/STI Surveillance System. 12. NATIONAL AIDS COORDINATING COMMITTEE HIV/AIDS PREVENTION AND CONTROL PROJECT IBRD LOAN NO. 7184-TR Notes to the Financial Statements For the year ended 30 September 2009 6. Application of Funds (Cont'd) (e) Programme Management, Coordination and Evaluation Total expenditure for the year is $3,937,890 broken down as follows: Appropriate management structure for the National Expanded Response $ 3,832,623 Monitor the implementation of the Expanded Response $ 105,267 Total Programme Management, Coordination and Evaluation $ 3,937,890 7. Exchange Rate Difference In order to ensure continuity and comparability in the accounts foreign currency transactions are recorded at the prevailing exchange rate at the date of the transaction. As the currency of commitment of the World Bank Loan is USD, exchange rate gains and losses can occur over time. 13. NATIONAL AIDS COORDINATING COMMITTEE HIV/AIDS PREVENTION AND CONTROL PROJECT IBRD LOAN NO. 7184-TR Notes to the Financial Statements For the year ended 30 September 2009 7. Exchange Rate Difference (Cont'd) The reconciliation with the World Bank account, indicating exchange rate differences is depicted below: Reconciliation with World Bank as at 30 September 2009 Draw down US$ 15.539,606 Restated in Trinidad and Tobago dollars as at 30 September 2009 (using World Bank Rates) TT$ 97.122,065 Total draw down on the loan Disbursed fiscal year 2009 TT$ 12,391,251 Disbursed fiscal year 2008 17,359,420 Disbursed fiscal year 2007 33,315,698 Disbursed fiscal year 2006 26,635,708 Disbursed fiscal year 2005 2,732,211 Disbursed fiscal year 2004 4,694,632 Exchange rate on difference on transactions (6.855) TT$ 97,122,065 8. World Bank Front End Fee The World Bank Front End Fee was deducted at the commencement of the loan; however the transaction was recognized within GORTT accounts during the 2007 fiscal year. In previous versions of the notes to the accounts a provision was made for this transaction. 14. NATIONAL AIDS COORDINATING COMMITTEE HIV/AIDS PREVENTION AND CONTROL PROJECT IBRD LOAN NO. 7184-TR Notes to the Financial Statements For the year ended 30 September 2009 9. Differences in Sources less Application of Funds This is the variance between the resources received and expended by the NACC. Of the three accounts that are utilized by the NACC only the balance on the Bank Account is available to be carried forward to the next fiscal year. NACC Bank Development Current Account Programme Transfers Total Cash Received Releases $ - $ 20,000,000 $ - $20,000,000 Releases - - 277.000 277,000 - 20,000,000 277,000 20,277,000 Cash Expenditure - (19,852,020) (275,200) (20,127.220) Net movement - 147,980 1,800 149,780 Opening balance on account 1.527 - - 1,527 Closing balance on account $ 1,522 S 147,980 07 15.