REPUBLIC OF KENYA OFFICE OF THE AUDITOR-GENERAL REPORT THE WORLD BN RECEVEDIN CD S OFFICE Recei ved by . ;~-r D OF Actiony FICr cc. ...... THE AUDITOR-GENERA?~ j ON THE FINANCIAL STATEMENTS OF NATIONAL URBAN TRANSPORT IMPROVEMENT PROJECT CREDIT NO. 5140-KE FOR THE YEAR ENDED 30 JUINE 2016 KENYA NATIONAL HIGHWAYS AUJTHORITY MINISTRY OF TRANSPORT, INFRASTRUCTURE, HOUSING & URBAN DEVELOPMENT r!!i 0__1_t_kenya Natio.nal Highways Authority PROJECT NAME: NATIONAL URBAN TRANSPORT IMPROVEMENT PROJECT IMPLEMENTING ENTITY: KENYA NATIONAL HIGHWAYS AUTHORITY PROJECT CREDIT NUMBER: LOAN ID 5140-KE PROJECT NO P-126321 ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED JUNE 30, 2016 I NATIONAL URBAN TRANSPORT IMPROVEMENT PROJECT Reports and Financial Statements For the financial year ended Jue 30, 2016 CONTENTS PAGE 1. PROJECT INFORMATION AND OVERALL PERFORMANCE..............................................................................i 2. STATEMENT OF PROJECT MANAGEMENT RESPONSIBILITIES.......vi 3. REPORT OF THE INDEPENDENT AUDITORS ON THE NATIONAL URBAN TRANSPORT IM PRO VE MNENT TPRO JECT .................................................................................................................................. vii 4. STATEMENT OF RECEIPTS AND PAYMENTS FOR THE PERIOD ENDED 30TH JUNE 2016........................1 5. STATEMENT OF FINANCIAL ASSETS AND LIABILITIES AS AT 30TH JUNE 2016.......................................2 6 STATEMENT OF CASHFLOW FOR THE PERIOD 30TH JUNE 2016...................................................................3 7 STATEMENT OF COMPARATIVE BUDGET AND ACTUAL AMOUNTS..........................................................4 8 N OTES TO THE FIN AN CIAL STATEM ENTS......................................................................................................... 5 9 PROGRESSES ON FOLLOW UP OF AUDITOR RECOMMENDATIONS...........................................................10 ANNEX 1 - VARIANCE EXPLANATIONS - COMPARATIVE BUDGET AND ACTUAL AMOUNTS ....................12 ANN EX 2A - AN ALY SIS OF PEN DIN G BILLS..............................................................................................................1 NATIONAL URBAN TRANSPORT IMPROVEMENT PROJECT Reports and Financial Statements For the financial year ended June 30, 2016 1. PROJECT INFORMATION AND OVERALL PERFORMANCE 1.1 Name and registered office Name: National Urban Transport Improvement Project Objective: a) Improve the efficiency of road transport along the Northern Corridor b) Improve the institutional capacity and arrangements in the urban transport Subsector c)Promote private sector participation in operation ,Financing and Management of transport sector Address: Blue Shield Tower, Hospital Road Upper Hill Nairobi Kenya Contacts: Director General Kenya National Highways Authority Po Box 49712-00100 Nairobi Telephone: (254) 020 495000 E-mail: dg@Kenha.co.ke Website: www.kenha.co.ke 1.2 Project Information -Project Start Date: 24th December 2012 Project End Date: 3 1st December 2018 Project Engineer Eng Dennis Odeck Project Sponsor: International Development Agency(IDA) 1.3 Project Overview Line Ministry/State The project is under the supervision of the Ministry of Transport, Department of the Infrastructure, and Housing & Urban Development project Project number P-126321 Strategic goals of the The strategic goals of the project are as follows: IVA11UIVAL UfBAV 1KAIVMUT IM-JnU VLML1VT PUJE'JC'I' Reports and Financial Statements For the financial year ended June 30, 2016 project Achievement of The project management aims to achieve the goals through the following strategic goals means: 1. The Implementation of policy and Institutional reforms in transport Particularly urban Public Transport 2. Financing infrastructure improvements to decongest major towns necessary to support Kenya's long term Development strategy 3. Creation of Institutional capacity to provide oversight and regulatory functions to support the delivery of urban Public the delivery of urban Public Transport Services 4. The Preparation of appropriate investment interventions that would promote urban public mass transit systems Other important Upgrade the Urban Road Transport Infrastructure (total cost US$311.15 background million, of which IDA US$223.26 million). Infrastructure (total cost information of the US$311.15 million, of which IDA US$223.26 million) . This component proj ect will involve: 1. Expanding and upgrading the Northern Corridor road section through Nairobi from JKIA turnoff to Rironi 2. Constructing the Kisumu Northern Bypass road 3. Constructing and rehabilitating non-motorized transport facilities including foot paths, cycle tracks, pedestrian bridges and underpasses. Current situation that 1. Kenya's economic development strategy the project was formed 2. Address the mounting pressures on the major urban centres, mainly to intervene Nairobi, road and related transport infrastructure and laying the foundation for developing an efficient urban public transport system 3. prepare a model mass transport system aimed at providing affordable and efficient public transport services in urban areas particularly for serving the low-income populations, especially in the CBD of Nairobi and along the developed high density corridors; and 4. build the operational and managerial capacity and efficiency of urban transport agencies in dealing with urbanization and transportation Project duration The project started on 24t' December 2012 and is expected to run until 3 1st December 2018 ii NATIONAL URBAN TRANSPORT IMPRO VEMENT PROJECT Reports and Financial Statements For the financial year ended June 30, 2016 1.4 Bankers Kenya Commercial Bank Moi Avenue Branch Po Box 30081-00100 Nairobi 1.5 Auditors Auditor General Office of the Auditor General Kenya National Audit Office P.o Box 30084-0100 Nairobi 1.6 Roles and Responsibilities Names Title designation Key Responsibilities qualification Eng. David A.Muchilwa General Manager Qualified Team Leader Special Project .e Team Coordinator & Eng. Dennis Odeck Manaer, Qualified Construction Project. Specialist Mr Isaac Kamotho Senior Accountant Qualified Financial Specialist Mr Walter Nyatwanga Manager, Qualified Safeguards Specialist Environment Senior Procurement Procurement Officer Specialist L 111 NATIONAL URBAN TRANSPORT IMPROVEMENT PROJECT Reports and Financial Statements For the financial year ended June 30, 2016 1.7 Funding summary The Project is for duration of 6 years from 24" December 2012 to 3 1st December 2018 with an approved budget of XDR 179,987,500 equivalent to Kshs 23,932,176,759 of which the donor will be financing 80% of the total sum as highlighted in the table below: Source of Donor Commitment- Amount received to Undrawn balance to date funds date - (30/06/2016) (30/06/2016) SDR Kshs SDR Kshs SDR Kshs (A) (A ') (B) (B') (A) - (B) (A)-(B') (i)Loan 143,990,000 19,140,160,545 1,205,911 170,688,400 142,784,089 18,997,376,456 (ii)Counterpar t funds Government ofKenya 35,997,500 4,792,016,214 2,693,374 381,228,419 33,304,126 4,758,712,088 (GOK Total 179,987,500 23,932,176,759 3,899,285 551,916,819 176,088,215 23,756,088,544 1.8 Summary of Overall Project Performance: Budget performance against actual amounts for current year and for cumulative to-date Current Year Cumulative To Date Budget Actual Performance Budget Actual Performance 2015/2016 2015/2016 % 2015/2016 2015/2016 % 2,135,020,000 99,005,285 4.64% 3,636,058,005 394,438,282 10.85% iv NATIONAL URBAN TRANSPOR T IMPROVEMENT PROJECT Reports and Financial Statements For the financial year ended June 30, 2016 Component Procurement Estimated Status Remarks method Cost (USD millions) A. Support to KeNHA to Upgrade the Urban Road Transport Infrastructure 1. James Gichuru Road ICB 163 Contract to be signed commencement awaiting Junction - Rironi between 8th and 12t" completion of RAP August 2016. updating 2. Kisumu Northern ICB 20 Bidding Documents Bank comments received Bypass under review by 29t1I July 2016 KeNHA 3. Updating designs and Supervision of Works a) James Gichuru - QCBS 10 Technical Evaluation TER resubmitted to Bank Rironi Report under review 5t" August 2016 by Bank b) Kisumu Northern QCBS 2 Technical Evaluation TER to be submitted to Bypass Report under review Bank 9t" August 2016 by KeNHA c) RAP updating for CQS 0.23 Consultancy services Inception report submitted James Gichuru - Rironi ongoing 5t" August 2016 Completion date 20h October 2016 7. Feasibility and QCBS 8 Bypasses for Embu, Bank had proposed that detailed design and Kakamega, Kisumu this activity be dropped in studies for the Eastern & Nakuru project restructuring. improvement of arteries Northern to be KeNHA proposes its adjoining major towns designed. TORs for reinstatement. Embu & Kakamega approved by Bank in April 2015 8. Capacity building and Cons 3.4 2016/ 2017 tasks Techrnical Assistance under compilation 9. Training of KeNHA, Training 1.4 2016/ 2017 training External Resources plan under Department (MoF) and compilation the State Law Office Staff 1.9 Summary of Project Compliance: There is no significant case of non-compliance with applicable laws and regulations and essential external financing agreements /covenants was reported during the year V IVA11UIVAL UKf5A1V 11CA1VNVUK1 IMFUVLMtJVT PROJLKECT Reports and Financial Statements For the financial year ended June 30, 2016 2. STATEMENT OF PROJECT MANAGEMENT RESPONSIBILITIES The Director General, KeNIA and the Project Implementation Team Leader for National Urban Transport Inprovement Project are responsible for the preparation and presentation of the Project's financial statements, which give a true and fair view of the state of affairs of the Project for and as at the end of the financial year ended on June 30, 2016. This responsibility includes: (i) maintaining adequate financial management arrangement and ensuring that these continue to be effective throughout the reporting period; (ii) maintaining proper accounting records, which disclose with reasonable accuracy at any time the financial position of the Project; (iii) designing, implementing and maintaining internal controls relevant to the preparation and fair presentation of the financial statement, and ensuring that they are free from material misstatements, whether due to error or fraud; (iv) safeguarding the assets of the Project; (v) selecting and applying appropriate accounting policies; and (vi) making accounting estimates that are reasonable in the circumstances. The Director General, KeNHA and the Project Inplementation Team Leader for National Urban Transport Improvement Project accept responsibility for the Project's financial statements, which have been prepared on the Cash Basis Method of Financial Reporting, using appropriate accounting policies in accordance with International Public Sector Accounting Standards. The Director General ,KeNHA and the Project Implementation Team Leader for National Urban Transport Improvement Project are of the opinion that the Project's financial statements give a true and fair view of the state of Project's transactions during the financial year/period ended June 30, 2016, and of the Project's financial position as at that date. The Director General, KeNIA and the Project Implementation Team Leader for National Urban Transport Project frther confirm the completeness of the accounting records maintained for the Project, which have been relied upon in the preparation of the Project financial statements as well as the adequacy of the systems of internal financial control. The Director General,KeNHA and the Project inplementation Team Leader for National Urban Transport inprovement Project confirm that the Project has complied fully with applicable Government Regulations and the terms of external financing covenants, and that Project funds received during the financial year/period under audit were used for the eligible purposes for which they were intended and were properly accounted for. Approval of the Project financial statements The Project financial statements were approved by the Director General, KeNHA and the Project Implenpntation Team Leader for National Urban Transport Improvement Project on _ _b_ _ _ _ 2016 and signed by them. Eng. Peter M.Mundinia Eng. David A. Muchilwa Director General, KeNHA General Manager (Special Project) vi REPUBLIC OF KENYA Telephone: +254-20-342330 P.O. Box 30084-00100 Fax: +254-20-311482 E-mail: oag@oagkenya.go.ke NAIROBI Website: www.kenao.go.ke OFFICE OF THE AUDITOR-GENERAL REPORT OF THE AUDITOR-GENERAL ON NATIONAL URBAN TRANSPORT IMPROVEMENT PROJECT CREDIT NO. 5140-KE FOR THE YEAR ENDED 30 JUNE 2016 - KENYA NATIONAL HIGHWAYS AUTHORITY REPORT ON THE FINANCIAL STATEMENTS I have audited the accompanying financial statements of the National Urban Transport Improvement Project Credit No.5140-KE set out on pages 1 to 13, which comprise the statement of assets and liabilities as at 30 June 2016, and the statement of receipts and payments, statement of changes in net assets, the statement of comparison of budget and actual amount, statement of cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information, in accordance with provisions of Article 229 of the constitution of Kenya, Section 35 the Public Audit Act, 2015 and financing agreement between the International Development Association (IDA) and the Republic of Kenya dated 26 September, 2012. I have obtained all the information and explanations which to the best of my knowledge and belief were necessary for the purpose of the audit. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with International Public Sector Accounting Standards (Cash Basis) 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. The management is also responsible for the submission of the financial statements to the Auditor-General in accordance with the provisions of Section 47 of the Public Audit Act, 2015. Auditor-General's Responsibility My responsibility is to express an opinion on these financial statements based on the audit and report in accordance with the provisions of Section 48 of the Public Audit Act, 2015 and submit the audit report in compliance with Article 229 (7) of the Constitution. The audit was conducted in accordance with the International Standards of Supreme Audit Institutions (ISSAls). Those standards require compliance with ethical requirements and that the audit be planned and performed with a view to obtaining reasonable assurance that the financial statement are free from material misstatement. Report of the Auditor-General on the Financial Statements of National Urban Transport Improvement Project Credit No. 5140-KE for the year ended 30 June 2016- Kenya National Highways Authority Prmoting Accountability in the Public Sector An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgement, including the assessment of the risks of material misstatement of the financial statements, 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 financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the project's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made, as well as evaluating the overall presentation of the financial statements. I believe the audit obtained is sufficient and appropriate to provide a basis for my audit opinion. Opinion In my opinion, the financial statements present fairly, in all material respects, the financial position of the National Urban Transport Improvement project as at 30 June 2016, and of its financial performance and its cash flows for the year then ended, in accordance with the International Public Sector Accounting Standards (Cash Basis) and conforms to the Financing Agreement Credit No. 5140-KE dated 26 September, 2012. In addition, the special account statement presents fairly the special account transactions and the closing balance has been reconciled with the books of account. Other Matter Rehabilitation and Capacity Enhancement of A104 from James Gichuru Road Junction to Rironi (Al041B3 Junction) Evidence available indicates that invitation for bids for the above road was advertised on 8 July 2015. The opening of the tender was carried out on 31 July, 2015 and thereafter the evaluation. The results of the evaluation were communicated to the Tender Committee which subsequently at the meeting held on 23rd June 2016 approved the contract award to M/s China Wu Yi Company Ltd for a contract sum of Kshs.16,366,586,563.19 inclusive of taxes for a contract period of 48 Months. 1.1 Information available further indicate that seven officers werdappointed to evaluate the bids received and make necessary recommendations. 1.2 Examination of evaluation score sheets filled by the officers during the evaluation process revealed the following anomalies; 1.2.1 The evaluators neither indicated their names nor signed in the score sheets e.g form preliminary 02,03,04 A and 04 B contrary to regulation 16(6) of the Public Procurement and Disposal Regulations, 2006. Report of the Auditor-General on the Financial Statements of National Urban Transport Improvement Project Credit No. 5140-KE for the year ended 30 June 2016 - Kenya National Highways Authority 2 One evaluator awarded scores to only four (4) out of the fourteen (14) bidders in form preliminary 03 preliminary inspection of bill of quantities contrary to section 16 (6) of the provisions of Public Procurement Regulations, 2006 which require that each member of the technical evaluation committee shall evaluate independently from the other members prior to sharing his or her analysis, questions and evaluation including his or her rating with the other members of the technical evaluation committee. 1.2.2 Further, scores awarded by the evaluators were cancelled without Countersigning for acknowledgement of errors. 1.2.3 In addition, the bidder who won the tender was failed by an evaluator who, in addition did not sign the evaluation score sheets during preliminary inspection of technical proposal on specifications for roller self-propelled which included; form EQU.15-30t pneumatic roller (4 no); form EQU.12-20t smooth drum or equivalent vibratory roller (4 no.); form EQU.10-20t sheep foot roller (2 no) and 8-15ft tandem drum vibratory roller (2 no). It is therefore not clear how the scores were measured and why the bidder was allowed to proceed to the next evaluation stage after failing in the above items in preliminary stage contrary to regulations 47 (2) and 49 (1) of the Public Procurement and Disposal Act, 2005. In the circumstances, it has not been possible to confirm whether the above works were awarded competitively and whether the Authority will obtain value for money in spending Kshs.16,366,586,563.19. REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS As required by the International Development Association financing agreement, I report based on my audit, that: i. I have obtained all the information and explanations which, to the best of my knowledge and belief, were necessary for the purpose of the audit; and, ii. In my opinion, proper books of account have been kept by the project, so far as appears from my examination of those books; and, iii. The project's statement of financial position is in agreement with the books of account. FCPA Edward R. 0. Ouko, CBS AUDITOR-GENERAL Nairobi 29 December 2016 Report of the Auditor-General on the Financial Statements of National Urban Transport Improvement Project Credit No. 5140-KE for the year ended 30 June 2016 - Kenya National Highways Authority 3 NATIONAL URBAN TRANSPORT IMPROVEMENT PROJECT Reports and Financial Statements For the financial year ended June 30, 2016 4. STATEMENT OF RECEIPTS AND PAYMENTS FOR THE PERIOD ENDED 30TH JUNE 2016 Note Cumulative 2016 2015 to date Kshs Kshs Kshs RECEIPTS Transfer from Goverrnent entities 8.2 82,923,780 103,544,654 381,228,419 Loan from External Development 8.3 - 170,688,400 170,688,400 Partner Miscellaneous Receipts 8.4 2,960,134 359,724 3 ,3 1 9 ,8 5 8 Total receipts 85,883,914 274,592,778 555,236,677 PAYMENTS Purchase of goods and services 8.5 26,201,540 23,753,235 61,840,485 Acquisition of non-financial assets 8.6 72,776,509 97,667,810 332,501,634 Miscellaneous Payments 8.7 27,237 46,471 96,163 TOTAL PAYMENTS 99,005,286 121,467,516 394,438,282 SURPLUS/DEFICIT FOR THE YEAR (13,121,372) 153,125,262 160,798,395 The accounting policies and explanatory notes to these financial statements are an integral part of the financial statements. Eng. Peter M.Mundinia Eng. David A. Muchilwa Director General, KeNIA General Manager (Special Project) Date Date NATIONAL URBAN TRANSPORT IMPROVEMENT PROJECT Reports and Financial Statements For the financial year ended June 30, 2016 5. STATEMENT OF FINANCIAL ASSETS AND LIABILITIES AS AT 30TH JUNE 2016 Note 2015/2016 2014/2015 Kshs Kshs FINANCIAL ASSETS Cash and Cash Equivalents Bank Balances 8.8 160,798,395 173,919,767 TOTAL FINANCIAL ASSETS 160,798,395 173,919,767 REPRESENTED BY: Cash and cash equivalents b/fwd 8.8A 173,919,767 20,794,505 Surplus/Deficit for the year (13,121,372) 153,125,262 NET FINANCIAL POSITION 160,798,395 173,919,767 The accounting policies and explanatory notes to these financial statements form an integral part of the financial statements. The financial statements were approved on \ l- 2016 and signed by: Eng. Peter M.Mundinia Eng. David A. Muchilwa Director General, KeNHA General Manager (Special Project) Date Date L 2 NATIONAL URBAN TRANSPORT IMPROVEMENT PROJECT Reports and Financial Statements For the financial year ended June 30, 2016 6 STATEMENT OF CASHFLOW FOR THE PERIOD 30TH JUNE 2016 Receipts for operating income 2015/2016 2014/2015 Transfer from Government .nite 82,923,780 103,544,654 entities Payments for operating expenses Purchase of goods and services (26,201,540) (23,753,235) Miscellaneous Payments (27,237) (46,471) Miscellaneous Receipts 2,960,134 359,724 Net cash flow from operating activities 59,655,137 80,104,672 CASHFLOW FROM INVESTING ACTIVITIES Acquisition of Assets (72,776,509) (97,667,810) Net cash flows from Investing Activities (72,776,509) (97,667,810) CASHFLOW FROM BORROWING ACTIVITIES Proceeds from Foreign { Borrwings- 170,688,400 Borrowings Net cash flow from financing activities - 1 70,6 8 8 ,4 0 0 NET INCREASE IN CASH AND CASH (13,121,372) 153,125,262 EQUIVALENT Cash and cash equivalent at BEGINNING of the year 173,919,767 20,794,505 Cash and cash equivalent at END of the year 160,798,395 173,919,767 The accounting policies and explanatory notes to these financial statements form an integral part of the financial statements. 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N^� = Е"'' � н О р •� О .� й н р '�" иД IG C�i � н Н �Q. �"� о :i -И G' � �./ �. � ` � ,Н � и v � i�к � U '� • О v � � +�+ _. О � С/) , � '� .C�.i � и v с� �`-� � 3.. v� � .� .� vj U Г� �! ,� � r � N v � �n..r �.S +., :i Г-г U ^ �iSl. � � � � .^Jj v О � О � Г, � J ,iU �^ О � bД � �' +J-' N 5 � � - � �i �.. [� �1 �'! �-' = , /-, Н �-+ �, -� � ^ � �Г" % W А Са � NATIONAL URBAN TRANSPOR T IMPRO TIEMENT PROJECT Reports and Financial Statements -For thefinancial year ended June 30,2016 8 NOTES TO THE FINANCIAL STATEMENTS The principal accounting policies adopted in the preparation of these financial statements are set out below: 8.1 Statement of compliance and basis of preparation The financial statements have been prepared in accordance with and co rnply with International Public Sector Accow-iting Standards (IPSAS) with particular emphasis on Cash Basis Financial Reporting under the Cash Basis of Accounting. The financial statements comply with and conform to the forin of presentation prescribed by the Accounting Standards Board of Kenya. The financial statements are presented in Kenya Shillings, which is the functional and reporting currency of the Project and all values are rounded to the nearest one Shilling. The accounting policies adopted have been consistently applied to all of the years presented. The financial statements have been prepared on the cash basis following the Government's standard chart of accounts. The cash basis of accounting recognises transactions and events only when cash is received or paid out by the Project. i. Recognition of revenue and expenses The Project recognises all revenues from the various sources when the event occurs and the related cash has actually been received by the Project. In addition, the Project recognises all expenses when the event occurs and the related cash has actually been paid out by the Project. ii. In-ldnd donations In-kind donations are contributions made to the Project in the form of actual goods and/or services rather than in money or cash terins. These donations may include vehicles, equipment or personnel services. Where the financial value of in-kind donations can be reliably determined, the Project includes such value in the statement of receipts and payments both as revenue and as an expense in equal and opposite aniounts; otherwise, the donation is not recorded. iii. Cash and cash equivalents Cash and cash equivalents comprise cash on hand and cash at bank, short-term deposits on call and highly liquid investments with an original maturity of three months or less, which are readily convertible to known amounts of cash and are subject to insignificant risk of changes in value. Bank account balances include amounts held at the Central Bank of Kenya and at various commercial banks at the end of the financial year. For the purposes of these financial statements, cash and cash equivalents also include short term cash imprests and advances to authorised public officers and/or institutions which had not been surrendered or accounted for at the end of the financial year 5 NATIONAL URBAN TRANSPOR T IMPROVEMENT PROJECT Reports and Financial Statements For the financial year ended June 30, 2016 SIGNIFICANT ACCOUNTING POLICIES (Continued) iv. Pending bills Pending bills consist of unpaid liabilities at the end of the financial year/period arising from contracted goods or services during the year/period or in past years/periods. As pending bills do not involve the payment of cash in the reporting period, they are simply disclosed as an Annex to the financial statements. When the pending bills are finally settled, such payments are included in the statement of receipts and payments in the year in which the payments are made. v. Budget The budget is developed on the same accounting basis (cash basis), the same accounts classification basis, and for the same period as the financial statements. The Project's budget was approved as required by Law and National Treasury Regulations, as well as by the participating development partners, as detailed in the Government of Kenya Budget Printed Estimates for the year. A high-level assessment of the Project's actual performance against the comparable budget for the financial year/period under review has been included in an annex to these financial statements. vi. Exchange rate differences The accounting records are maintained in the functional currency of the primary economic environment in which the Project operates, Kenya Shillings. Transactions in foreign currencies during the year/period are converted into the functional currency using the exchange rates prevailing at the dates of the transactions. Any foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the statements of receipts and payments. vii. Comparative figures Where necessary comparative figures for the previous financial year/period have been amended or reconfigured to conform to the required changes in financial statement presentation. viii. Subsequent events There have been no events subsequent to the financial year/period end with a significant impact on the financial statements for the year ended June 30, 2016. 6 NATIONAL URBAN TRANSPORT IMPRO VEMENT PROJECT Reports and Financial Statements For the financial year ended June 30, 2016 8.2 RECEIPTS FROM GOVERNMENT OF KENYA These represent counterpart funding and other receipts from government as follows: 2015/16 2014/15 Cumulative to-date Kshs Kshs Kshs Quarter 1 5,384,617 28,345,169 89,324,855 Quarter 2 685,100 11,215,071 42,240,369 Quarter 3 1,882,260 1,326,600 20,505,582 Quarter 4 74,971,803 62,657,814 229,157,613 82,923,780 103,544,654 381,228,419 8.3 LOAN FROM EXTERNAL DEVELOPMENT PARTNERS Loans Loans Total Amount mi.n received as Name of Donor received in amount loan currency cash direct in Kshs payment FY FY 2014/15 2015/16 SDR Kshs Kshs Kshs Kslis Loans Received from -- - - 170,688,400 Bilateral Donors (IDA) Total 143,990,000 - - - 170,688,400 8.4 MISCELLANEOUS RECEIPTS 2015/16 2014/15 Cumulative to-date Kshs Kshs Kshs Bank Interest 2,960,134 359,724 3 ,3 1 9 ,8 5 8 Total 2,960,134 359,724 3,319,858 L 7 NATIONAL URBAN TRANSPORT IMPROVEMENT PROJECT Reports and Financial Statements For the financial year ended June 30, 2016 8.5 PURCHASE OF GOODS AND SERVICES 2015/16 2014/15 Cumulative Kshs Kshs Kshs Domestic travel and subsistence 26,201,540 23,753,235 61,840,485 26,201,540 23,753,235 61,840,485 8.6 ACQUISITION OF NON-FINANCIAL ASSETS Cumulative to- 2015/16 2014/15 date date Kshs Kshs Kshs Land Acquisition 2,217,223 1,283,200 3,500,423 Research, studies, project preparation, 70559286 96,384,610 329,001,211 design & supervision 72,776,509 97,667,810 332,501,634 8.7 MISCELLANEOUS PAYMENTS 2015/16 2014/15 Cumulative to-date Kshs Kshs Kshs Bank Charges 27,237 46,471 96,163 Total 27,237 46,471 96,163 8.8 CASH AND CASH EQUIVALENTS C/FWD 2015/16 2014/15 Kshs Kslis Bank accounts (Note 8.6A) 160,798,395 173,919,767 160,798,395 173,919,767 8 NATIONAL URBAN TRANSPORT IMPROVEMENT PROJECT Reports and Financial Statements For the financial year ended June 30, 2016 8.8A BANK ACCOUNTS 2015/16 2014/15 Kshs Kshs Local Currency Accounts Kenya Commercial Bank [A/c No.1138238945] 160,798,395 173,919,767 8.9 PENDING BILLS (Annex 2A) 2015/16 2014/15 Kshs Kshs Supply of services 137,656,776 Land Acquisition 947,034,612 1,084,691,388 9 i � ���� _г" ��� w ' с� ci � � Е Е � л F, r � � � � � � � а� ,�, .и > ,� .. .. ? f: cG и S� 1 .� О � ? 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