The Social Investment Fund of Belize Financial Statements for the Years Ended March 31, 2019 and 2018 and Independent Auditors’ Report THE SOCIAL INVESTMENT FUND OF BELIZE TABLE OF CONTENTS Page Independent auditors' report on sources and uses of funds statements 1–2 Cumulative sources and uses of funds statements 3–4 Statements of cumulative investments 5 Notes to financial statements 6 – 12 Statement of Cumulative Investments (cost variance report) 13 Special report on compliance with contractual agreement (Basic Need Trust Fund) 15 Compliance schedules to Basic Needs Trust Fund 16 – 21 Special report on compliance with contractual agreement (Caribbean Development Bank) 22 Compliance schedules to Caribbean Development Bank Loan #2 23 – 26 Special report on compliance with contractual agreement (IBRD) 27 Compliance schedules to IBRD 28 – 30 Report on supplemental schedules 31 Project expenditure by funding source (categories) 32 – 33 World Bank /IDB (CRIP) sources and uses of fund statements 34 – 35 World Bank /IDB reconciliation statements 36 GOB project expenditure report (detailed) 37 CDI project expenditure report (detailed) 38 BNTF 6 project expenditure report (detailed) 39 BNTF 7 project expenditure report (detailed) 40 BNTF 8 project expenditure report (detailed) 41 CDB project expenditure report (detailed) 42 – 43 EU project expenditure report (detailed) 44 World Bank /IDB (BMDP) project expenditure report (detailed) 45 World Bank /IDB (CRIP) project expenditure report (detailed) 46 40 Central American Blvd. Belize City, Belize, C.A. T: +501 227 3020 E: info@csb.bz www.csb.bz INDEPENDENT AUDITORS’ REPORT To the Board of Directors of: SOCIAL INVESTMENT FUND OF BELIZE Opinion We have audited the financial statements of the Social Investment Fund of Belize financed with resources of Grant and Loan Contracts with the Caribbean Development Bank (CDB), European Union (EU), International Bank for Reconstruction and Development (World Bank) and with contributions of the Government of Belize, which include the Cumulative Sources and Uses of Funds Statement and the Statement of Cumulative Investments for the year ended March 31, 2019 and notes to the financial statements, including a summary of significant accounting policies. In our opinion, the accompanying Financial Statements of the Social Investment Fund of Belize for the year ended March 31, 2019 have been prepared in all material respects, in accordance with the financial reporting requirements of the Grant and Loan Contracts with the Caribbean Development Bank, European Union and the 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 Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Social Investment Fund of Belize in accordance with the International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants (IESBA Code), and we have fulfilled our other ethical responsibilities in accordance with the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Emphasis of Matter - Basis of Accounting and Restriction on Distribution Without modifying our opinion, we draw attention to Note 2a to the financial statements, which describes the basis of accounting. The financial statements have been prepared to assist the Social Investment Fund of Belize in accordance with the financial reporting requirements of the Grant and Loan Contracts with the Caribbean Development Bank, European Union and the World Bank. As a result, the financial statements may not be suitable for another purpose. Our report is intended only for the Social Investment Fund of Belize and the CDB, EU and World Bank, and should not be distributed to other parties other than the CDB, EU and World Bank or the Social Investment Fund of Belize. Our opinion has not been modified in respect of this matter. Management’s Responsibility Management is responsible for the preparation of these financial statements in accordance with the requirements established in the financial reporting requirements of the Grant and Loan Contracts with the Caribbean Development Bank, European Union and the World Bank. In addition, management is responsible for establishing internal controls as they determine necessary to enable the preparation of statements that are free from material misstatement, whether due to fraud or error. Partners: Claude Burrell, CPA, CISA Giacomo Sanchez, CPA AUDIT | TAX | OUTSOURCING | CONSULTING Independent Auditors’ Report Page 2 Auditor’s Responsibilities Our objective is to obtain reasonable assurance that the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an audit report that includes our opinion. Reasonable assurance is a high level of assurance, but it is not a guarantee that an audit conducted in accordance with the 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 the financial statements. As part of an audit in accordance with ISAs, we exercise professional judgement and maintain professional skepticism throughout the audit. We also:  Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error; to design and perform audit procedures responsive to those risks; and to obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.  Obtain an understanding of internal control relevant to the audit 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.  Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.  Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the SIF’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause Social Investment Fund of Belize to cease to continue as a going concern.  Evaluate the overall presentation, structure and content of the financial statements including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identified during the audit. Chartered Accountants Belize City, Belize June 28, 2019 AUDIT | TAX | OUTSOURCING | CONSULTING THE SOCIAL INVESTMENT FUND OF BELIZE CUMULATIVE SOURCES AND USES OF FUNDS STATEMENTS FOR THE YEAR ENDED MARCH 31, 2019 Cumulative Cumulative 2019 2018 2019 2018 $ $ $ $ Project Financing Government Funds: GOB-Capital III - - 16,931,880 16,931,880 Administrative Income - - 318,869 318,869 Consultancy Income - - 800 800 Reimbursement from IBRD to GOB (CAP III) - - (11,783,091) (11,783,091) Reimbursement from World Bank - - (204,706) (204,706) Capital II 1,642,620 1,642,620 24,774,757 23,132,137 Reimbursement from CDB to GOB (Cap III) BNTF 5 - - 11,023,561 11,023,561 Reimbursement from CDB to GOB (Cap III) CDB Loan - - 12,696,643 12,696,643 Reimbursement from CDB to GOB (Cap III) BNTF 6 - - 5,067,414 5,067,414 Reimbursement from CDB to GOB (Cap II & III) BNTF 6 IBRD: Initial advance to Special Account - - 150,000 150,000 Reimbursement to Special Account - - 266,295 266,295 Reimbursement made to GOB - - 204,706 204,706 Reimbursement made to GOB (Cap III) BNTF 5 - - 452,774 452,774 Reimbursement made to GOB (Cap III) CDB Loan - - (13,028,380) (13,028,380) Reimbursement made to GOB (Cap III) BNTF 6 - - (5,067,414) (5,067,414) Reimbursement made to GOB (Cap II & III) BNTF 6 - - (1,134,055) (1,134,055) World Bank Loan – BMDP - - 28,871,656 28,871,656 Work Bank Loan – BMDP/CRIP Counterpart Funding 16,876 33,750 989,884 989,884 PPF financing - - 1,235,569 1,235,569 Repayment to IBRD by UNICEF - - (18,790) (18,790) Japanese Grant - - 393,568 393,568 ODA - - 333,752 333,752 European Union - - 9,196,377 9,196,377 European Union Counterpart Funding - - 1,765,410 1,765,410 United Nations Children’s Fund - - 163,084 163,084 Inter-American Development Bank - - 933,801 933,801 Supplemental Loan - - 678,591 678,591 CDB/BNTF - - 1,387,076 1,387,076 PAHO/WHO - - 238,777 238,777 UK/BNTF - - 3,342,416 3,342,416 Caribbean Development Bank – CDI (Commonwealth - - 15,318,298 15,318,298 Debt Initiative) Caribbean Development Bank – BNTF 5 Grant - - 15,038,038 15,038,038 Caribbean Development Bank – BNTF 5 Counterpart - - 2,472,044 2,472,044 Funding Caribbean Development Bank – BNTF 6 Grant - - 6,011,347 6,011,347 Caribbean Development Bank – BNTF 6 Counterpart - - 1,334,996 1,334,996 Funding Caribbean Development Bank – BNTF 7 Grant 51,578 1,518,792 11,467,601 11,416,023 Caribbean Development Bank – BNTF 7 Counterpart - 31,971 608,634 608,634 Funding -3- THE SOCIAL INVESTMENT FUND OF BELIZE CUMULATIVE SOURCES AND USES OF FUNDS STATEMENTS (CONTINUED) FOR THE YEAR ENDED MARCH 31, 2019 Cumulative Cumulative 2019 2018 2019 2018 $ s $ $ Caribbean Development Bank - BNTF 8 Grant 1,671,291 2,780,108 2,780,108 Caribbean Development Bank - BNTF 8 Counterpart 50,602 212,881 212,881 Funding Caribbean Development Bank - BNTF 9 Grant 1,933,957 1,933,957 Caribbean Development Bank - BNTF 9 Counterpart 12,500 12,500 Funding Caribbean Development Bank - COB loan 16,029,640 16,029,640 Caribbean Development Bank - COB loan 2,516,638 2,516,638 Counterpart Funding Caribbean Development Bank - COB Loan #2 (SIF 351,824 2,197,612 26,987,128 26,635,304 Loan II) Caribbean Development Bank - COB Loan #2 8,437 8,437 Counterpart Funding Caribbean Development Bank - COB Loan #3 (SIF 2,002,426 2,002,426 2,002,426 Loan Ill) Caribbean Development Bank - COB Loan #2 18,000 2,303,537 2,285,537 Counterpart Funding Caribbean Development Bank - COB Loan #2 Direct 246,772 246,772 Payment World Bank - World Bank Project Preparation Facility 1,010,281 1,010.281 World Bank - CRIP 2,994,300 2,694,870 7,286,130 4,291,830 World Bank - CRIP Direct Payment 1,676,624 2,167,321 4,179,152 2,502,528 Inter-bank/Organization Transfers 409,391 409,391 Other Income 188,205 501,082 3,192,041 3,003,836 Total Financing 9,141,693 14,512,337 213,560,077 204,418,384 Project expenditures: Community Projects 403,345 10,108,420 142,964,685 142,561,340 Consultants Services and Training 5,185,841 5,295,772 24,131,553 18,945,712 Incremental Operating Costs 2,965,457 2,742,992 38,685,654 35,720, 197 PPF Charges 531,568 531,568 Recovery/Other Expenses 1,440,811 1,440,811 Total Expenditure 8,554,643 18,147,184 207,754,271 199, 199,628 Net cash inflow(outflow) 587,050 (3,634,847) 5,805,806 5,218,756 Beginning Cash Balance 5,218,756 8,853,603 Ending Cash Balance 5,805,806 5,218,756 5,805,806 5,218,756 The financial statements on pages 3 to 5 were approved and authorized for issue by the Board of Directors on June 28, 2019 and are signed on its behalf by: The notes on pages 6 to 12 are an integral part of these financial statements . .4 • THE SOCIAL INVESTMENT FUND OF BELIZE STATEMENT OF CUMULATIVE INVESTMENTS (COST VARIANCE REPORT) FOR THE YEAR ENDED MARCH 31, 2019 ACTUAL (BZ $) BUDGETED (BZ $) VARIANCE (BZ $) Cumulative Year Cumulative Cumulative Year Cumulative Cumulative Year Cumulative Investments 2018 2019 2019 2018 2019 2019 2018 2019 2019 $ $ $ $ $ $ $ $ $ Access 1,936,724 - 1,936,724 3,823,200 - 3,823,200 1,886,476 - 1,886,476 Agriculture 473,530 - 473,530 581,948 - 581,948 108,418 - 108,418 Community Markets 363,558 - 363,558 3,670,350 - 3,670,350 3,306,792 - 3,306,792 Economic Infrastructure Project 24,227,353 - 24,227,353 56,828,835 12,476,250 69,305,085 32,601,482 12,476,250 45,077,732 Education Projects 49,479,957 209,875 49,689,832 77,476,586 450,000 77,926,586 27,996,629 240,125 28,236,754 Health Projects 10,435,060 59,914 10,494,974 26,784,703 100,000 26,884,703 16,349,643 40,086 16,389,729 Housing 2,408,266 - 2,408,266 1,068,334 - 1,068,334 (1,339,932) - (1,339,932) Integrated Pilot Project 1,159,224 - 1,159,224 7,259,464 - 7,259,464 6,100,240 - 6,100,240 Maintenance 924,555 - 924,555 2,076,100 - 2,076,100 1,151,545 - 1,151,545 Microenterprise Credit Project 2,028,595 - 2,028,595 3,935,315 - 3,935,315 1,906,720 - 1,906,720 Organizational Projects 1,757,879 107,226 1,865,105 8,081,576 - 8,081,576 6,323,697 (107,226) 6,216,471 Skills Training 933,673 - 933,673 5,881,678 - 5,881,678 4,948,005 - 4,948,005 Social Services Project 7,984,020 - 7,984,020 15,541,739 - 15,541,739 7,557,719 - 7,557,719 Vulnerable Persons 548,042 - 548,042 1,311,167 - 1,311,167 763,125 - 763,125 Water & Sanitation 37,900,904 26,330 37,927,234 77,423,378 60,000 77,483,378 39,522,474 33,670 39,556,144 Community sub-projects 142,561,340 403,345 142,964,685 291,744,373 13,086,250 304,830,623 149,183,033 12,682,905 161,865,938 Institutional Support - Consultancy Services 18,945,712 5,092,188 24,037,900 34,299,149 10,029,601 44,328,750 15,353,437 4,937,413 20,290,850 Institutional Support - Operating Cost 34,278,359 2,872,703 37,151,062 38,279,556 3,251,465 41,531,021 4,001,197 378,762 4,379,959 Institutional Support - Goods 1,441,838 186,407 1,628,245 1,138,055 209,000 1,347,055 (303,783) 22,593 (281,190) Incremental Costs 35,720,197 3,059,110 38,779,307 39,417,611 3,460,465 42,878,076 3,697,414 401,355 4,098,769 PPF 531,568 - 531,568 683,147 - 683,147 151,579 - 151,579 Recovery/Other Expenses 1,440,811 - 1,440,811 - - - (1,440,811) - (1,440,811) Total Investments 199,199,628 8,554,643 207,754,271 366,144,280 26,576,316 392,720,586 166,944652 18,021,673 184,966,325 The notes on pages 6 to 12 are an integral part of these financial statements. -5- THE SOCIAL INVESTMENT FUND OF BELIZE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2019 1. GENERAL INFORMATION The Social Investment Fund of Belize (SIF) was established in May 1996 as a statutory body under the Social Investment Fund Act, Chapter 43 of the Laws of Belize. The Mission of the SIF is to respond to the basic human needs of the poorest of the poor in Belize in an efficient, transparent and ethnically sensitive manner utilizing a participatory, collaborative and demand driven approach. SIF works in close collaboration with other social services institutions in Belize to deliver services that are more sustainable in the medium to long term, especially considering Belize's geographic spacing, ethnic diversity, and gender equity and is funded through grants and loans provided by the Caribbean Development Bank (CDB), the International Bank for Reconstruction and Development (IBRD), the Commonwealth Debt Initiative (CDI), the European Union (EU), the Government of Belize (GOB) and other donors. PROJECT STATUS - BASIC NEEDS TRUST FUND The office of the Basic Needs Trust Fund (BNTFO), which operated under the Ministry of National Development, was closed in Belize City in December 2001. The BNTFO was responsible for executing community sub-projects financed through the CDB's BNTF 4 Programme, the UK Provision for Basic Needs Programme and the GOB. The BNTF 4 Programme was completed December 11, 2002. At the time the Belize City office was closed, several community sub-projects were still being implemented. In 2002, SIF was given the responsibility for completing those community sub-projects that were under implementation and for implementing those that had already been approved. On March 26, 2002, the GOB signed a grant agreement with the CDB for US$3,254,203 to finance a Basic Needs Trust Fund 5th Programme which funds basic social infrastructural small and large sub- projects in areas such as water and sanitation, education, health, skills training, community markets, access and maintenance projects. The GOB contributed US$1,133,000 as was required under the agreement. In June 2003, GOB was granted an additional amount of US$2,006,897 by the Canadian International Development Agency to fund large sub-projects under the Basic Needs Trust Fund 5th Programme. The additional grant was approved on the terms and conditions set out in Grant Agreement No. GA 23/BZE dated March 26, 2002 between the CDB and the GOB. The BNTF 5th Programme has concluded, as such BZ$498,794 was returned to GOB in fiscal 2014. On January 30, 2009 the GOB was provided with another grant of US$3,005,596 from the Special Funds Resources of the CDB to finance the Basic Needs Trust Fund 6th Programme, which funds sub-projects focused on groups such as women, youth and poor households. GOB is also expected to contribute US$1,072,180 under the terms and conditions of Grant GA 30/BZE. The BNTF 6th Programme is nearing completion, as such BZ$1,300,000 was returned to GOB in fiscal 2014. The terminal disbursement date of the BNTF 6th Programme has been extended to December 31, 2014. In fiscal 2015, several projects were completed under this grant, including: extension of the Corazon Creek Technical High School and the Benque Pre-school, vocational, academic and life skills training programmers, etc. The BNTF 6 Programme has closed out during the 2017 fiscal period, as such BZ$1,134,055 was returned to GOB. -6- THE SOCIAL INVESTMENT FUND OF BELIZE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED MARCH 31, 2019 1. GENERAL INFORMATION (Continued) PROJECT STATUS – BASIC NEEDS TRUST FUND (CONTINUED) On January 22, 2013 the GOB was provided with a grant of US$6,091,751 from the Special Funds Resources of the CDB to finance the Basic Needs Trust Fund 7th Programme, which funds sub-projects in the areas of education and human resource development, water and sanitation improvement, and basic community access and drainage improvement. The overall objective of the 7th Programme is to reduce poverty and vulnerability. GOB is also expected to contribute US$848,895, under the terms and conditions of Grant GA 42/BZE. In fiscal 2015, the Preparation of Poverty Reduction Action Plan (PRAP) consultancy was completed and sub-project profiles for the education and water and sanitation sectors were developed. On May 13, 2015 the GOB was provided with a grant of US$1,613,571 from the Special Funds Sources of the CDB to finance the Basic Needs Trust Fund 8th Programme, which funds sub-projects in the areas of education and human resource development, water and sanitation improvement, and basic community access and drainage improvement. The overall objective of the 8th Programme is to reduce poverty and vulnerability. GOB is also expected to contribute US$ 80,679, under the terms and conditions of Grant GA/47 BZ. On June 26th, 2017 the GOB was provided with a grant of US$ 4,540,000 from the Special Funds Sources of the CDB to finance the Basic Needs Trust Fund 9th Programme, which funds sub-projects in the areas of education and human resource development, livelihoods, water and sanitation systems enhancement and basic community access and drainage enhancement. GOB is also expected to contribute US$654,235, under the terms and conditions of Grant /61 BZ. PROJECT STATUS – CARIBBEAN DEVELOPMENT BANK LOAN #1 On March 1, 2004, the GOB entered into a loan agreement with the CDB for funds totaling US$7,073,000 (Loan No. 15 SFR-OR-BZE). The Terminal Disbursement Date of this loan agreement was September 30, 2013. These funds are used for social and economic infrastructure, social services and organizational strengthening sub-projects aimed at reducing poverty in Belize and for the institutional support of SIF. CDB Projects included: Rudimentary Water Systems in Maya Center/Kendall, Sundaywood, San Antonio, Buena Vista, Blackman Eddy/Ontario, Santana/Corozalito; Resource/Library and/or IT Centers in San Ignacio, Esperanza, Santa Clara/San Roman, Guinea Grass, Gracie Rock, San Joaquin, San Jose Succotz; Trial Farm Drainage Project (Phase 1 ); Mopan Health Clinic (Phase 2) and San Pedro Columbia Health Center; St. Ann's Women's Group; Queen Square Market; small infrastructural projects at Roaring Creek Nazarene School and other schools throughout the country. No new projects were initiated since 2013 as loan funds have now been disbursed and projects completed. The CDB Loan #1 has closed out, as such BZ$334,374 was returned to GOB in fiscal 2014. PROJECT STATUS – CARIBBEAN DEVELOPMENT BANK LOAN #2 (SIF LOAN II) The GOB entered into a loan agreement with the CDB for funds totaling US$15,000,000 (Loan No. 19/SFR-OR-BZE) on November 16, 2011 (SIF Loan II). The funds are earmarked for projects in six main categories including water and sanitation, health, economic/other infrastructure, education, social services and organizational strengthening. The period of disbursement is up to September 30, 2015. -7- THE SOCIAL INVESTMENT FUND OF BELIZE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED MARCH 31, 2019 1. GENERAL INFORMATION (Continued) PROJECT STATUS – CARIBBEAN DEVELOPMENT BANK LOAN #2 (SIF LOAN II) (Continued) The borrower is expected to contribute not less than BZ$3,597,000. Projects initiated, completed or near completion under the SIF Loan II in 2015 include: substitution, rehabilitation and/or extension of the All Saints Primary School, Orange Walk Technical High School, Chan Pine Ridge Water and Sanitation Project, San Carlos/Indian Church Water System Project, Sarteneja Water and Sanitation Project, Arenal Resource Center Project, Buttonwood Bay Drainage Construction Project, Arms of Love Preschool, Santa Ana Water and Sanitation Project and Samuel Haynes Institute of Excellence Extension. The Terminal Disbursement Date (TDD) was extended to March 31, 2017. The Caribbean Development Bank (CDB) granted a second extension to March 2018. The terminal disbursement date has been extended to July 31, 2018 as per CDB letter ref: 27/19/405. PROJECT STATUS – CARIBBEAN DEVELOPMENT BANK LOAN #3 (SIF LOAN III) The GOB entered into a loan agreement with the CDB for funds totaling US$ 10,000,000 (Loan No. 25/SFR-OR-BZE) on June 8, 2017 (SIF Loan III). The funds are embarked for projects in five main categories including education, water and sanitation, health, social services and organizational strengthening. The borrower is expected to contribute in counterpart funding US$2,518,000. The Terminal Disbursement Date (TDD) for SIF Loan III is June 30, 2021. PROJECT STATUS – COMMONWEALTH DEBT INITIATIVE In December 2002, SIF received funding under the UK Debt Relief Programme (Commonwealth Debt Initiative) and commenced implementation of community sub-projects in 2003. Additional funds were granted thereafter. Some of the projects funded by CDI include: Gulisi Community Primary School, San Roman Preschool, Stann Creek Ecumenical Junior College, Placencia Preschool, installation of water facilities in several villages - Santana, Corozalito and Saint Ann’s, electrification projects in Cayo North East and Maya Mopan village, the Bradley’s Bank Electrification project, etc. In 2015, SIF facilitated the procurement of furniture and computers for the Belmopan Methodist High School with CDI funding. In 2016, some of the sub-projects funded include Kuxlin Ha and Golden Haven Rest House Electrical works and Trinity Methodist School Bathroom Rehabilitation. EUROPEAN UNION (BANANA SUPPORT PROGRAMME) The European Union (EU) entered into a comprehensive development project agreement with SIF aimed at alleviating poverty and improving living conditions of select rural communities in the banana producing areas of Belize through improvement of primary education and other water and sanitation infrastructure. The EU provided a grant of €1,840,608.90. Projects funded under this grant include: United Community Primary School Extension Project, Cowpen/Garage Rudimentary Water System Construction Project, San Juan Satellite Health Center Extension Project and the Independence Primary School Extension Project. The implementation period for this agreement ended on April 30, 2008. EUROPEAN UNION: POVERTY ALLEVIATION In June 1999, the European Union entered into a comprehensive development project agreement with SIF to alleviate poverty and improve the living conditions of the most vulnerable groups in Belize. This included improving primary education and training center facilities and supporting small scale productive projects in the poorest communities by enabling access to a micro-enterprise credit scheme. The project was completed December 31, 2002. The total funding was 1,600,000 Million European Currency Units (MECU) of which 400,000 MECU was slated for the education component and 1,200,000 MECU for the micro-enterprise credit project. Main results of the project were: -8- THE SOCIAL INVESTMENT FUND OF BELIZE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED MARCH 31, 2019 1. GENERAL INFORMATION (Continued) EUROPEAN UNION: POVERTY ALLEVIATION (Continued0 1. Eight primary schools and training centers rehabilitated and functioning. 2. Micro-entrepreneurs had access to over 2,250 short and medium term loans. 3. Family income was expected to increase by 40% to 60% for participating entrepreneurs. 4. The lasting effect of Belizean Micro-Finance Institutions and Training Centers. On December 21, 2007, an agreement was signed between the Ministry of Economic Development (MED) and the EU for the implementation of Emergency Reconstruction after Hurricane Dean in Belize. The total cost of the action eligible for financing by the European Union was estimated at €600,000. The project aimed to reduce poverty by mitigating the vulnerability of poor rural families affected by Hurricane Dean and rehabilitating the rural productive sector, thereby contributing to increased income, employment and livelihood options. The project has now come to an end. On May 15, 2009, an agreement was signed between the MED and the EU for €483,181.81 to implement a water system for Crooked Tree Village in order to improve the living and working conditions of residents of this poor community by providing a reliable, potable, safe and year-round water supply to Crooked Tree Village. The project has now come to an end. INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT (IBRD) In 2001, a Supplementary Loan (No. 4142-1 BEL) of US$1,400,000 was secured under the "Agreement Amending the Loan Agreement." This second agreement amends the first and is inclusively repayable in twenty-three semi-annual installments of US$60,000 on May 15 and November 15 of each year, commencing November 15, 2006 and ending May 15, 2018, with a final payment of US$20,000. Interest will be charged on the principal amount withdrawn and outstanding from time to time at a rate of three fourths of one percent, while the first loan shall accrue interest at one half of one percent annually. Projects were executed by SIF, an independent executing agency, who reported to the World Bank and the GOB. GOB was directly responsible for the overall SIF promotion, coordination, appraisal, financing, supervision, execution and completion of community projects. SIF was also responsible for the preparation and submission of quarterly financial reports to the World Bank. The project was completed in March 2003. PROJECT STATUS – IBRD - BMDP On December 2, 2011, Loan Number 7958-BZ was executed between the GOB and the IBRD for US$15,000,000 to improve access to basic municipal infrastructure and to enhance the service delivery and municipal management in selected towns. The Belize Municipal Development Project is designed into 3 categories: municipal infrastructure investments, technical assistance and capacity building for TCC’S MLLGRD and MNRE and project management. Prior to the signing of said loan, the IBRD provided an advance facility in respect of the loan agreement of up to US$800,000 (Project Preparation Advance No. IBRD P4520-001 agreement signed on July 16, 2009 between the GOB and IBRD). The advance facility was used in 2011 for the preparation of a project designed to improve municipal service delivery and its sustainability in up to nine selected municipalities (San Ignacio/Santa Elena, Belmopan City, Benque Viejo Del Carmen, Dangriga, Punta Gorda, Corozal and Orange Walk), including consultancies on traffic management, municipal finance and revenue enhancement, participatory investment planning and municipal development strategies, and workshops on municipal capacity building, social assessment and indigenous framework. -9- THE SOCIAL INVESTMENT FUND OF BELIZE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED MARCH 31, 2019 1. GENERAL INFORMATION (Continued) PROJECT STATUS – IBRD – BMDP (Continued) Projects undertaken include civil works in seven of the municipalities, rehabilitation of the Punta Gorda Town Council, refurbishment and extension of the Dangriga Market, finance management capacity building, engineering services for technical supervision, etc. In 2014, several consultancies were initiated including: Preparation of the Physical Assets Maintenance Plan, Municipal Growth Plans for the various municipalities, Preparation of Designs, Technical specifications, and cost estimates for the rehabilitation of streets in the various municipalities (Phase 2). In 2015, works on the Dangriga Market, Orange Walk Town Park, and Phase 1 streets in the various municipalities were completed; Preparation of Designs, Technical specifications, and cost estimates for the rehabilitation of streets in the various municipalities (Phase 2) and the Centennial Park in Benque Viejo were also completed. The remaining sub-projects under Phase 2 are expected to commence in fiscal 2016. The Terminal Disbursement Date was extended to November 30, 2016. PROJECT STATUS – IBRD – CRIP On July 18, 2013, the World Bank and GOB signed an Advance Agreement for Preparation of the Proposed Climate Resilient Infrastructure Project (CRlP), Project Preparation Advance No. P4680-BZ. The World Bank has provided GOB with a PPF of US$1,500,000. The refinancing date for the PPA has been extended from March 30, 2015 to May 4, 2015. The objective of the PPF activities is to facilitate the preparation of a proposed project designed to improve the resilience of critical infrastructure to natural hazards and impacts of climate variability and to strengthen the capacity of the national and local government in managing climate resilience. On February 3, 2015, Loan Number 8416-BZ (Climate Resilient Infrastructure Project) was executed between the GOB and the IBRD for US$30,000,000 to enhance the resilience of road infrastructure against flood risk and impacts of climate change; and to improve the Borrower’s capacity to respond promptly and effectively in an eligible crisis or emergency, as required. The project includes the carrying out of feasibility and engineering studies for the preparation of investments to reduce physical vulnerability of critical infrastructure in priority areas; retrofitting and rehabilitating existing infrastructure within the primary and secondary road networks (including associated drainage and flood mitigation systems), as needed to strengthen their resilience to natural hazards and the anticipated impacts of climate variability, and implementation of the subprojects. The project will also assist in strengthening the capacity of the Ministry of Works and Transport (MOWT) and the Ministry of Natural Resources and Agriculture (MNRA) to mainstream climate resilience considerations into core physical and investment planning and in strengthening asset maintenance; supporting project management and implementation through financing of services, training, operating costs and goods for SIF, MOWT and MNRA; and provision of support for immediate response to eligible crisis or emergencies. DEPARTMENT FOR INTERNATIONAL DEVELOPMENT – HURRICANE IRIS RECOVERY PROJECT As a result of Hurricane Iris, funds equivalent to £305,112 from the UK Department for International Development were provided to SIF for the implementation of recovery projects. These included the construction of starter houses, rudimentary water systems and hurricane shelters. Funds were originally granted to BNTF 4 under the Provision for Basic Needs Programme, which was completed in 2002. - 10 - THE SOCIAL INVESTMENT FUND OF BELIZE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED MARCH 31, 2019 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES a) Basis of presentation – The Belize Social Investment Fund uses a cash basis of accounting modified for the presentation of investments at fair value, which is a comprehensive basis of accounting other than generally accepted accounting principles. Under this basis, certain revenues are recognized when received rather than when earned and certain expenses and purchases are recognized when cash is disbursed rather than when the obligation is incurred. b) Functional and presentation currency – The financial statements are presented in Belize dollars, which is SIF’s functional currency. c) Foreign currency translations – Transactions in foreign currencies are translated into Belize dollars at exchange rates at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the reporting date are translated to the functional currency at the exchange rate at that date. All differences arising on settlement or translation of monetary items are taken to the statement of sources and uses of funds. d) Cash – Cash include cash on hand, deposits held with banks and other short-term highly liquid investments with original maturities of three months or less. e) Income and expense recognition – Interest income on loans and other income are recognized when collected. Interest income on fixed deposits is recognized when earned. Interest and other expenses are recognized when paid. f) Interest income – Interest on term deposits may be paid quarterly or monthly. 3. CASH 2019 2018 Social Investment Fund $ 520,890 $ 568,396 Social Investment Fund/ European Union 964,257 964,404 Caribbean Development Bank - SIF Loan II 59,999 2,984 Social Investment Fund - SIF Loan II counterpart 427,729 533,224 Caribbean Development Bank - SIF Loan III 1,608,070 1,962,501 Caribbean Development Bank - Basic Needs Trust Fund 9 1,773,084 79 Caribbean Development Bank - Basic Needs Trust Fund 8 - 105 Social Investment Fund - Basic Needs Trust Fund 8 counterpart 43,053 71,982 Caribbean Development Bank - Basic Needs Trust Fund 7 - 14,033 Social Investment Fund - Basic Needs Trust Fund 7 counterpart 117,941 107,697 Social Investment Fund - Basic Needs Trust Fund 9 12,435 - Social Investment Fund - Government of Belize Counterpart 3,210 - World Bank - Climate Resilient Infrastructure Project 101,376 865,952 Social Investment Fund - Belize Municipal Development Project counterpart 173,762 127,399 $5,805,806 $5,218,756 - 11 - THE SOCIAL INVESTMENT FUND OF BELIZE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED MARCH 31, 2019 4. TAXATION Under the Social Investment Fund Act, Chapter 43 of Laws of Belize, Revised Edition 2000, SIF is exempt from taxes on income and property assessed under the Income and Business Tax Act. All instruments executed by or on behalf of SIF are also exempted from stamp duty. - 12 - THE SOCIAL INVESTMENT FUND OF BELIZE STATEMENTS OF CUMULATIVE INVESTMENTS (COST VARIANCE REPORT) FOR THE YEARS ENDING MARCH 31, 2016, 2017, 2018 AND 2019 TOTAL TOTAL VARIANCE 2016 2017 2018 2019 BUDGETED 2016 2017 2018 2019 ACTUAL $ $ $ $ $ $ $ $ $ $ $ Economic Infrastructure 6,478,809 3,578,061 - 12,476,250 22,533,120 4,253,380 6,015,437 - - 10,268,817 (12,264,303) Education Projects 1,910,871 11,437,513 8,895,000 450,000 22,693,384 333,118 6,572,606 6,341,410 209,875 13,457,009 (9,236,375) Health Projects 1,751,803 3,461,616 1,731,000 100,000 7,044,419 - 2,468,818 2,151,057 59,914 4,679,789 (2,364,630) Integrated Pilot Project - - - - - - - - - - - Organizational Projects 1,039,664 956,367 133,000 - 2,129,031 91,359 384,464 153,293 107,226 736,342 (1,392,689) Skills Training - - - - - - - - - - - Social Services Project 535,824 60,766 - - 596,590 437,685 136,841 - - 574,526 (22,064) Water & Sanitation 3,456,109 4,557,417 1,618,000 60,000 9,691,526 2,232,222 2,586,696 1,391,625 26,330 6,236,873 (3,454,653) Consultancy Services 3,586,541 3,231,983 14,568,587 10,029,601 31,416,712 1,136,772 2,304,749 5,243,010 5,092,188 13,776,719 (17,639,993) Institutional Support - Operating Cost/Goods 3,122,480 3,029,965 3,273,627 3,460,465 12,886,537 2,694,187 2,701,271 2,866,789 3,059,110 11,321,357 (1,565,180) TOTAL INVESTMENTS 21,882,101 30,313,688 30,219,214 26,576,316 108,991,319 11,178,723 23,170,882 18,147,184 8,554,643 61,051,432 (47,939,887) - 13 - 40 Central American Blvd. Belize City, Belize, C.A. T: +501 227 3020 E: info@csb.bz www.csb.bz INDEPENDENT AUDITORS’ REPORT TO: BASIC NEEDS TRUST FUND (BNTF) PROGRAMME We have audited the Cumulative Sources and Uses of Funds Statements and Statement of Cumulative Investments for the Social Investment Fund for the year ended March 31, 2019, entered into by the Government of Belize (GOB), the Caribbean Development Bank (CDB), the European Union (EU), the Commonwealth Debt Initiative (CDI), and the International Bank for Reconstruction and Development (IBRD), executed by SIF. In relation to our audit, we determined compliance with most financial and accounting contractual clauses and articles within the Special Conditions and General Conditions of BNT 7th, 8th and 9th Grant Agreements, and compliance with the applicable provisions of the SIF’s Operating Regulations as of March 31, 2019 We have examined the Special Conditions described in Section 3 and 5 of the BNTF’s Operational Manual. We conducted our audit in accordance with International Standards on Auditing and the requirements of the Caribbean Development Bank. Those standards require that we plan and perform the audit to obtain reasonable assurance that the Program has complied with the pertinent loan contractual clauses, applicable laws and regulations and the provisions contained in the BNTF Operations Manual. The audit also includes examining, on a test basis, the appropriate evidence. We believe that our audit provides a reasonable basis for our opinion. In our opinion, for the year ended March 31, 2019 SIF complied in all material respects with the financial and accounting contractual clauses of the BNTF’s Grant Agreements, and with all applicable laws and regulations and the Operating Regulations of the Fund. Chartered Accountants Belize City, Belize June 28, 2019 Partners: Claude Burrell, CPA, CISA Giacomo Sanchez, CPA AUDIT | TAX | OUTSOURCING | CONSULTING THE SOCIAL INVESTMENT FUND OF BELIZE SUMMARY OF COMPLIANCE WITH CONTRACTUAL AGREEMENT FOR THE YEAR ENDED MARCH 31, 2019 Basic Needs Trust Fund (7th Programme) This is the summary of compliance with SIF’s BNTF Operations Manual. Section No. Conditions Status Conditions precedent to first disbursement Article IV, Section Authorized signatories for applications for payments. Compliant 4.01 (i) Section 4.01 (ii) Establishment of Oversight Entity. Compliant Implementing Agency has operations in Section 4.01 (iii) Compliant independent accommodation accessible to the community. Particular conditions Within six (6) months of satisfaction of conditions Article V, Section precedent Programme Organization and Management: Compliant 5.01 (i) Manager/Coordinator, Community Liaison Officer and Administrative/Accounting Officer. Section 5.01 (iv) Maintain a Special Account at a commercial bank in Belize Compliant By March 31, 2013 or such later date as the Bank may Section 5.01 (v) Compliant agree in writing, update and adopt PRAP. By June 30, 2013 or such later date as the Bank may Section 5.01 (vi) Compliant agree in writing, prepare a country project portfolio. Revised Operations Manual for use in the implementation Section 5.01 (vii) Compliant of the Project. Article V, Section By November 30, in each year, submit to the Bank a draft Compliant 5.02 (i) Annual Work Plan and Budget. Article V, Section By January 15, in each year, submit to the Bank a draft Compliant 5.02 (ii) Annual Project Performance Report. By July 30, in each year, commencing the first year after Article V, Section Pending from Project Project implementation, submit to the Bank an annual 5.02 (ii) Manager environmental performance report. Pay US $266,948 into the Special Account in the Article V, Section instalments and by the periods set out in Schedule 3 Compliant 5.03 (Years 1-4). Article V, Section Mid-Term Evaluation Compliant 5.06 Article V, Section SIF performs annual Annual Performance Audit 5.07 financial audit - 15 - THE SOCIAL INVESTMENT FUND OF BELIZE SUMMARY OF COMPLIANCE WITH CONTRACTUAL AGREEMENT (CONTINUED) FOR THE YEAR ENDED MARCH 31, 2019 Basic Needs Trust Fund (7th Programme) (Continued) Section No. Conditions Status Article V, Section Reporting requirement as per Schedule 6 5.08 Poverty Reduction Action Plan (PRAP) Compliant Completed September Country Project Completion Report 2018. Consultant currently Program Closing Report being procured by CDB to conduct PCR. Article IV, Section Conditions precedent to first disbursement for each 4 sub- project Sub-project profile in accordance with the format set out in Sections 4.03, the Operations Manual, and approved by the Oversight Compliant 4.04 Entity. - 16 - THE SOCIAL INVESTMENT FUND OF BELIZE SUMMARY OF COMPLIANCE WITH CONTRACTUAL AGREEMENT (CONTINUED) FOR THE YEAR ENDED MARCH 31, 2019 Basic Needs Trust Fund (8th Programme) This is the summary of compliance with SIF’s BNTF Operations Manual. Section No. Conditions Status Conditions precedent to first disbursement Article IV, Section Authorized signatories for applications for payments. Compliant 4.01 (i) Section 4.01 (ii) Establishment of Oversight Entity. Compliant Implementing Agency has operations in Section 4.01 (iii) independent accommodation accessible to the Compliant community. Particular conditions The following represents the minimum staff component of the BNTFO: Article V, Section a) Project Manager Compliant 5.01 b (i) b) Administrative/Accounting Officer (AO) c) Community Liaison Officer Maintain a Special Account at a commercial bank in Section 5.01 b(iii) Compliant Belize. Article V, Section By November 30, in each year, submit to the Bank a Compliant 5.02 (i) draft Annual Work Plan and Budget. Article V, Section By January 15, in each year, submit to the Bank a draft Compliant 5.02 (ii) Annual Project Performance Report. By July 30, in each year, commencing the first year after Article V, Section Pending from Project Project implementation, submit to the Bank an annual 5.02 (iii) Manager environmental performance report. Article V, Section Environmental Screening Checklist (Site specific Compliant 5.02 (iv) checklist) for sub-projects. Pay US$80,679 into the Special Account in the Article V, Section instalments and by the periods set out in Schedule 4 Compliant 5.03 (Years 1 & 2). Article V, Section Mid-Term Evaluation Compliant 5.05 Article V, Section SIF performs annual Annual Performance Audit 5.06 financial audit - 17 - THE SOCIAL INVESTMENT FUND OF BELIZE SUMMARY OF COMPLIANCE WITH CONTRACTUAL AGREEMENT (CONTINUED) FOR THE YEAR ENDED MARCH 31, 2019 Basic Needs Trust Fund (8th Programme) (Continued) Section No. Conditions Status Article V, Section Reporting requirement as per Schedule 10 5.07 SIF performs annual Performance Audit including Financial Audit financial audit Completed September Country Project Completion Report 2018 Consultant currently Program Closing Report being procured by CDB to conduct PCR Conditions precedent to first disbursement for each Article IV, Section 4 sub-project Sub-project profile in accordance with the format set out Sections 4.02, 4.03 in the Operations Manual, and approved by the Compliant Oversight Entity. - 18 - THE SOCIAL INVESTMENT FUND OF BELIZE SUMMARY OF COMPLIANCE WITH CONTRACTUAL AGREEMENT (CONTINUED) FOR THE YEAR ENDED MARCH 31, 2019 Basic Needs Trust Fund (9th Programme) This is the summary of compliance with SIF’s BNTF Operations Manual. Section No. Conditions Status Conditions precedent to first disbursement Article IV, Section Authorized signatories for applications for payments. Compliant 4.01 (i) Section 4.01 (ii) Account has been maintained; Compliant Section 4.01 (iii) Executing Agency has been maintained; and Compliant Section 4.01 (iv) Oversight Entity has been maintained. Compliant Particular conditions maintain an account at a commercial bank or other Article V, Section institution, acceptable to the Bank, through which all Compliant 5.01 d (i) activities under the Project, and only such activities will be financed; The following represents the minimum staff component of the BNTFO: a) Project Manager Section b) Administrative/Accounting Officer (AO) Compliant 5.01 d (ii) c) Community Liaison Officer (CLO) d) Monitoring and Evaluation Officer (M&E Officer) e) Project Engineer (PE) by August 31, 2017, or such later date as the Bank may Section specify in writing, prepare and adopt the CPF in Compliant, Ref. 5.01 d (iii) accordance with the guidelines set out in Schedule 15, in 27/2/81/1 form and substance acceptable to the Bank. Mid-Term Evaluation. (a) The Executing Agency shall by March 31, 2019, or such later date as the Bank may Section specify in writing, facilitate and make all necessary Currently ongoing 5.05 arrangements in consultation with the Bank for an MTE of BNTF 9 and the Project to be conducted by independent consultants. the Beneficiary shall contribute to the Project an amount of not less than the equivalent of six hundred and fifty- Section four thousand two hundred and thirty-five United States Compliant, ongoing. 5.06 b dollars (USD654,235), which shall be paid into the Account in the instalments and by the dates set out in the Financing Plan. - 19 - THE SOCIAL INVESTMENT FUND OF BELIZE SUMMARY OF COMPLIANCE WITH CONTRACTUAL AGREEMENT (CONTINUED) FOR THE YEAR ENDED MARCH 31, 2019 Basic Needs Trust Fund (9th Programme) (Continued) Section No. Conditions Status Article V, Section Reporting requirement as per Schedule 10 5.07 Country Policy Framework (CPF) Compliant, Ref. 27/2/81/1 Sector Portfolio of sub-projects Compliant, Ref 27/2/81/1 This report will be prepared during Sub-project Monitoring Reports (SPMR) implementation of sub projects. Minutes of OE meetings Compliant Compliant. Reports are Status of Portfolio by Sector submitted monthly to CDB. Annual Work Plan and Budget (AWPB) Compliant Compliant. Submitted to Annual Project Performance Report (APPR) CDB January 2019. This report will be Sub-project Completion Report (SPCR) prepared upon completion of Sub - Project. Financial Audit Compliant Performance Audit Due until August 2019. Not Applicable at the moment. This report will Environmental Performance Report be prepared during implementation stage of the sub-project. - 20 - THE SOCIAL INVESTMENT FUND OF BELIZE SUMMARY OF COMPLIANCE WITH CONTRACTUAL AGREEMENT (CONTINUED) FOR THE YEAR ENDED MARCH 31, 2019 Basic Needs Trust Fund (9th Programme) (Continued) Section No. Conditions Status Article V, Section Reporting requirement as per Schedule 10 5.07 Mid-Term Evaluation (MTE) Currently ongoing Not Applicable. Due within 6 months after CDB's Country Project Completion Report (CPCR) Terminal Disbursement Date (TDD). Not Applicable. Due within 6 months after CDB's Programme Closing Report (PCR) Terminal Disbursement Date (TDD). Article IV, Section Conditions precedent to first disbursement for each 4 sub-project Sub-project profile in accordance with the format set out in Sections 4.02, the Operations Manual, and approved by the Oversight Compliant 4.03 Entity. - 21 - 40 Central American Blvd. Belize City, Belize, C.A. T: +501 227 3020 E: info@csb.bz www.csb.bz INDEPENDENT AUDITORS’ REPORT TO: CARIBBEAN DEVELOPMENT BANK We have audited the Cumulative Sources and Uses of Funds Statements and Statement of Cumulative Investments for the Social Investment Fund for the year ended March 31, 2019. entered into by the Government of Belize (GOB), the Caribbean Development Bank (CDB), the European Union (EU), the Commonwealth Debt Initiative (CDI), and the International Bank for Reconstruction and Development (IBRD), executed by SIF. In relation to our audit, we determined compliance with most financial and accounting contractual clauses and articles within the Special Conditions and General Conditions of CDB Loan #2, #3 and compliance with the applicable provisions of the SIF’s Operating Regulations as of March 31, 2019. We have examined the Special Conditions described in the loan agreement. We conducted our audit in accordance with International Standards on Auditing and the requirements of the Caribbean Development Bank. Those standards require that we plan and perform the audit to obtain reasonable assurance that the Program has complied with the pertinent loan contractual clauses, applicable laws and regulations and the provisions contained in the BNTF Operations Manual. The audit also includes examining, on a test basis, the appropriate evidence. We believe that our audit provides a reasonable basis for our opinion. In our opinion, for the year ended March 31, 2019, SIF complied in all material respects with the financial and accounting contractual clauses of the loan agreements, and with all applicable laws and regulations and the Operating Regulations of the Fund. Chartered Accountants Belize City, Belize June 28, 2019 Partners: Claude Burrell, CPA, CISA Giacomo Sanchez, CPA AUDIT | TAX | OUTSOURCING | CONSULTING THE SOCIAL INVESTMENT FUND OF BELIZE SUMMARY OF COMPLIANCE WITH CONTRACTUAL AGREEMENT (CONTINUED) FOR THE YEAR ENDED MARCH 31, 2019 Caribbean Development Bank Loan II This is a summary of compliance with the loan agreement, exceptions noted in the Management Letter. Section No. Conditions Status Article V Conditions precedent to first disbursement Establish special bank account at commercial bank S 5.01 Compliant acceptable to CDB. Create and fill two additional positions (1 engineer Compliant and 1 social development officer). Other conditions Article IV S4.01 Withdrawal and application of loan. Compliant Article IV S4.03 (b) Procurement Plan Compliant Article VI Particular conditions Article VI S6.01 Execution of the Project (staffing) Compliant GOB to implement through the Ministry of Local Government the portion of the Technical Assistance Compliant. Component in respect of the institutional and operational framework of the Village Water Boards. The Statistical Institute of GOB to procure that the Statistical Institute of Belize Belize has already prepared a implement the portion of the Technical Assistance Poverty Map and Poverty Index Component for the update of the Poverty Map and based on 2010 Census (March Poverty Index. 2013). Environmental Screening Checklist (Site specific Article VI S6.05 Compliant checklist) for sub-projects. Compliant. SIF's Board of Project Proposal to Increase Sustainability of sub- Directors approved June 2013. Article VI S 6.06 projects due 31 December 2011. Bridge financing provided to beneficiaries. Article VII Sub-projects Appraisal, financing and supervision of sub-projects; design, inspection and certification of infrastructure S7.01 loans; eligibility of sub-projects; sub-project limits; Compliant sub- project approvals; approval of contracts I variations in respect of sub-projects. - 23 - THE SOCIAL INVESTMENT FUND OF BELIZE SUMMARY OF COMPLIANCE WITH CONTRACTUAL AGREEMENT (CONTINUED) FOR THE YEAR ENDED MARCH 31, 2019 Caribbean Development Bank Loan II (Continued) Section No. Conditions Status Article VI General Provisions Article IV S4.04 Procurement processes Compliant Article VI S6.01 (a) Guarantee Agreement Not Applicable (i) Article VI S6.01 (a) Not Applicable. Belize is a member Requirement for non-CDB members (ii) state. Article VI s 6.01 Legal Opinion Compliant (a) (iii) (iv) S6.01 (a) (v) and Designation of Representatives and Compliant (vi) Authorization for Withdrawals S6.08 Reporting Requirements Quarterly reports of status portfolio Compliant Schedule of Cumulative Commitments and Disbursements and Anticipated Approvals and Compliant Disbursements for the next six months. Annual work plan and budget Compliant Audited Statements Compliant Consultant's Reports: Review of Village Water Boards (due June Compliant 2011) Development of Monitoring and Development of Monitoring and Evaluation Evaluation System - completed and System (due May 2011) approved by CDB 27 Feb 2015. Poverty Map and Poverty Index Development of Poverty Map and Index ( due based on 2010 Census - completed October 2011) March 2013 by Statistical Institute of Belize Impact Evaluation including Beneficiary Compliant Assessment (due December 2014) Environmental Performance Report Compliant Annual Monitoring and Evaluation Report Compliant Ongoing. Consultant was hired on Project Completion Report April 8, 2019 - 24 - THE SOCIAL INVESTMENT FUND OF BELIZE SUMMARY OF COMPLIANCE WITH CONTRACTUAL AGREEMENT (CONTINUED) FOR THE YEAR ENDED MARCH 31, 2019 Caribbean Development Bank Loan III This is a summary of compliance with the loan agreement, exceptions noted in the Management Letter. Section No. Conditions Status Article V Conditions precedent to first disbursement Article V S5.01 (i) Special Account has been established; and Compliant Article V S5.01 (ii) M&E Specialist has been engaged. Compliant Withdrawal of loan. Article IV S4.01 Withdrawal and application of loan. Compliant Article IV S4.03 (b) Procurement Compliant Article VI Particular conditions Article VI S6.01 Execution of the Project Compliant The Executing Agency shall not make any changes to the provisions of the OM or to its Menu of Eligible Sub- Article VI S6.05 Compliant projects set out in Schedule 10 without the Bank's prior approval in writing. by March 31, or such later date as the Bank may specify in writing, in each year commencing during the first year after project implementation, submit to the Bank an This report will be prepared environmental performance report which shall provide a Article VI S 6.06 during implementation of summary of the environmental performance of the sub- sub-projects. projects financed from the Bank's resources during the immediately preceding year of the Executing Agency's operations; and Community Needs and Assets Assessment. The Executing Agency shall include in the CNAA an analysis of the institutional capacity and financial arrangements of Ongoing, appraisal of sub- Article VI S 6.07 line ministries and sponsors, and their ability to operate projects is being performed and maintain investments; and social and gender considerations. Grievance Redress Mechanism. The Executing Agency shall, by December 31, 2017, or such later date as the Bank may specify in writing, put in place a grievance Submitted to CDB for Article VI S 6.08 redress mechanism to receive and facilitate resolution of approval May 31, 2019 the affected communities' concerns and complaints about environmental and social performance that may arise during sub-project implementation. Climate Change Resilience. The Executing Agency shall Ongoing, appraisal of sub- Article VI S 6.09 integrate CC resilience into its operations in accordance projects is being performed with guidance set out at Schedule 11. a Quarterly Report on Investment Costs in the form Article VI S 6.12 attached at Schedule 12 and in substance acceptable to Complaint the Bank; and - 25 - THE SOCIAL INVESTMENT FUND OF BELIZE SUMMARY OF COMPLIANCE WITH CONTRACTUAL AGREEMENT (CONTINUED) FOR THE YEAR ENDED MARCH 31, 2019 Caribbean Development Bank Loan III (Continued) Section No. Conditions Status S6.08 Reporting Requirements Monthly Progress Report on status of sub-project portfolio: (a) requests received; (b) sub-projects being appraised; (c) sub-projects approved; Compliant, report submitted (d) sub-projects in implementation including monthly to CDB. start and end dates; (e) sub-projects completed; (f) sub-projects suspended/cancelled; and (g) sub-projects by district and poverty classification (quintiles 1-5). Schedule of Allocated Amounts, Approved Amounts, Compliant, report submitted Contract Amounts, Uncommitted Amounts, monthly to CDB. Cumulative Commitments No of beneficiaries by Category, District, Poverty Compliant, report submitted Index. monthly to CDB. Copy of Annual Work Plan and Budget Compliant Financial Audit Compliant Consultants' Reports on institutional strengthening, Complaint TA and training activities. M&E Progress Report Complaint Due within 3 months after the completion of the last PCR prepared by PC and PM component of the sub-project to be implemented. Report will be prepared during Annual Environmental Performance Report the implementation of the sub project. SIF and CDB currently in Mid-term Review discussion for the preparation of the report. Due within 6 months of project CDB's PCR completion. - 26 - 40 Central American Blvd. Belize City, Belize, C.A. T: +501 227 3020 E: info@csb.bz www.csb.bz INDEPENDENT AUDITORS’ REPORT TO: INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT We have audited the Cumulative Sources and Uses of Funds Statements and Statement of Cumulative Investments for the Social Investment Fund for the year ended March 31, 2019, entered into by the Government of Belize (GOB), the Caribbean Development Bank (CDB), the European Union (EU), the Commonwealth Debt Initiative (CDI), and the International Bank for Reconstruction and Development (IBRD), executed by SIF. In relation to our audit, we determined compliance with most financial and accounting contractual clauses and articles within the Special Conditions and General Conditions of loan agreement (CRIP) and the agreement for preparation of the proposed Climate Resilient Infrastructure Project (CRIP) and compliance with the applicable provisions of the SIF’s Operating Regulations as of March 31, 2019. We have examined the Special Conditions described in loan agreement (CRIP) and the advance agreement for the CRIP. 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 Program has complied with the pertinent loan contractual clauses, applicable laws and regulations and the provisions contained in the loan and advance agreements. The audit also includes examining, on a test basis, the appropriate evidence. We believe that our audit provides a reasonable basis for our opinion. In our opinion, for the year ended March 31, 2019, SIF complied in all material respects with the financial and accounting contractual clauses of the loan agreements, and with all applicable laws and regulations and the Operating Regulations of the Fund. Chartered Accountants Belize City, Belize June 28, 2019 Partners: Claude Burrell, CPA, CISA Giacomo Sanchez, CPA AUDIT | TAX | OUTSOURCING | CONSULTING THE SOCIAL INVESTMENT FUND OF BELIZE SUMMARY OF COMPLIANCE WITH CONTRACTUAL AGREEMENT (CONTINUED) FOR THE YEAR ENDED MARCH 31, 2019 International Bank for Reconstruction and Development – CRIP (PPA) This is a summary of compliance with the advance agreement, exceptions noted in the Management Letter. Section No. Conditions Status Standard Conditions Article II, Activities Preparation of studies relating to pre-engineering Section 2.01 (a) Compliant activities. Compliant. Social Assessment and Involuntary Resettlement Preparation of environmental and social impact Framework and Environmental Section 2.01 (b) assessment, resettlement framework and indigenous Safeguards assessments for people's framework for the Project. the Project completed April 2014. Provision of technical equipment required for the Section 2.01 (c) Compliant Activities. Technical assistance for the implementation of the Recipient's National Land Use Management Plan Section 2.01 (d) Compliant, In progress and National Spatial Data Infrastructure (NSDI) policy. Establishment of a project implementation unit (PIU) Section 2.01 ( e) Compliant within the SIF. Section 2.01 (f) Financing of Training and Operating Costs. Compliant Section 2.01 (g) Consultancy services for audit of the Advance. Compliant Article II, Section Institutional and Other Arrangements 2.03 The Ministry of Finance and SIF enter into a Section 2.03 (a) Compliant Subsidiary Agreement. Maintain and designate staffing and resources for Section 2.03 (b) Compliant implementation of the Activities. Terms of reference for any consultancies shall be Section 2.03 (c) Compliant satisfactory to the Bank - 28 - THE SOCIAL INVESTMENT FUND OF BELIZE SUMMARY OF COMPLIANCE WITH CONTRACTUAL AGREEMENT (CONTINUED) FOR THE YEAR ENDED MARCH 31, 2019 International Bank for Reconstruction and Development – CRIP (Loan Agreement) (Continued) Section No. Conditions Status Standard Conditions Article II, Section Monitoring, Reporting and Evaluation of the Compliant. In progress. 2.04 Activities. Article II, Section Financial Management, Financial Reports and 2.05 Audits Financial Management System Compliant Semi- annually unaudited financial Compliant Annual audited financial statements Compliant Article VI, Section Subsidiary Agreement Compliant 6.01 (b) Article VI, Section Legal opinion (ratification of Subsidiary Agreement) Compliant 6.02 Disbursement Letter Authorized signatories to request proceeds of Section II (i) Compliant advance Other Inter-Ministerial Obligation Agreement Compliant Supervision Mission (March 2014) Section 6 (i) Completion of the Operations Manual. Compliant Completion and disclosure of the two safeguards Section 6 (ii) Compliant framework. Section 6 (iii) Completion of the first-year procurement plan. Compliant Technical Mission (March 2015) Section v(20) (a) Selection of focal points. Compliant Contingency Emergency Response Operations Section 5 (28) Compliant Manual - 29 - THE SOCIAL INVESTMENT FUND OF BELIZE SUMMARY OF COMPLIANCE WITH CONTRACTUAL AGREEMENT (CONTINUED) FOR THE YEAR ENDED MARCH 31, 2019 International Bank for Reconstruction and Development – CRIP (Loan Agreement) This is a summary of compliance with the loan agreement, exceptions noted in the Management Letter Section No. Conditions Status Oversight of the project provided by Ministry of Compliant. Project Steering Finance and Economic Development and the Project Committee established. Steering Committee. Parts 1 and 2.2 of the Project carried out by the 3.01 (a) (i) Compliant Ministry of Works. Part 2.1 of the Project carried out by Ministry of Natural 3.01 (a)(ii) Compliant Resources. Part 4 of the Project carried out by the Coordinating 3.01 (a) (iii) Compliant Authority. Subsidiary Agreement - executed, authorized or 5.01/5.02 Compliant ratified. Schedule 2 Section 1 A (1) Project Steering Committee established. Compliant Compliant. Project Coordinator, Engineer, and Financial Specialist, financial Section 1 A (2) PMU established with adequate staff. and administrative assistants, Procurement Officer employed. Section 1 A (3) Parts 1, 2 and 3 of the Project to be carried out by SIF. Compliant. In progress Project Operations Manual should not be amended, Section 1 A (5) abrogated, repealed, waived or failed to be enforced Compliant without prior approval by the Bank. Section 1 D (1) Annual work plan due not later than 15 October each Compliant (A) year. The Bank's Environmental and Social Safeguards Section 1 E (1) should be incorporated in subproject terms of Compliant. In progress references. Section 1 F (1) Contingent Emergency Response Operations Manual. Compliant. In progress Section 2 (A) -1 Project Reports (semester) Compliant Section 2 (B) (1) Financial management system Compliant Section 2 (B) (2) Semi- annually unaudited financial reports (semester) Compliant Section 2 (B) (1) Annual audited financial statements Compliant - 30 - 40 Central American Blvd. Belize City, Belize, C.A. T: +501 227 3020 E: info@csb.bz www.csb.bz INDEPENDENT AUDITORS’ REPORT TO: THE MINISTER OF FINANCE AND THE SOCIAL INVESTMENT FUND OF BELIZE BOARD OF DIRECTORS We have audited the Cumulative Sources and Uses of Funds Statements and Statement of Cumulative Investments for the Social Investment Fund for the year ended March 31, 2019, entered into by the Government of Belize (GOB), the Caribbean Development Bank (CDB), the European Union (EU), the Commonwealth Debt Initiative (CDI), and the International Bank for Reconstruction and Development (IBRD), executed by SIF. We conducted our audit in accordance with International Standards on Auditing and the requirements of the World Bank. Those standards require that we comply with ethical requirements and plan and perform the audits to obtain reasonable assurance whether the financial statements are free from material misstatement. We conducted our audits for the purpose of expressing an opinion on the sources and uses of funds statements and the statements of cumulative investments of the Social Investment Fund of Belize taken as a whole. The accompanying supplementary financial information is presented for the purpose of additional analysis and should not be considered necessary to the presentation of the basic financial statements. We have read this information and verified that it is consistent with the information provided in the financial statements and is part of the audit mentioned in the first paragraph and, in our opinion, except for the limitations mentioned in our report on the basic financial statements, is fairly presented, in all material respects, when taken as a whole with the basic financial statements. Chartered Accountants Belize City, Belize June 28, 2019 Partners: Claude Burrell, CPA, CISA Giacomo Sanchez, CPA AUDIT | TAX | OUTSOURCING | CONSULTING THE SOCIAL INVESTMENT FUND OF BELIZE PROJECT EXPENDITURES BY FUNDING SOURCE (CATEGORIES) FOR THE YEAR ENDED MARCH 31, 2019 WORLD CDB LOAN CDB LOAN GOB CDI BNTF 7 BNTF 8 BNTF 9 EU BANK/ CRIP TOTAL II III Expenditures: IBRD $ $ $ $ $ $ $ $ $ Economic Infrastructure Project - - - - - - - - - - - Education Project - - 1,489 - - 208,386 - - - - 209,875 Institutional Support - Consultancy Services 25,746 - 53,495 35,663 28,774 287,180 82,785 - - 4,578,545 5,092,188 Institutional Support - Goods 99,557 - - - 86,850 - - - - 186,407 Institutional Support – Operating Cost 1,589,876 - 388 (6,640) 132,244 (3,816) 286,436 147 237 873,831 2,872,703 Integrated Pilot Project - - - - - - - - - - - Organizational Project - - - - - 107,226 - - - - 107,226 Skills Training - - - - - - - - - - - Social Services Project - - - - - - - - - - - Water & Sanitation - - - - - 26,330 - - - - 26,330 Health Projects - - - - - 59,914 - - - - 59,914 Contingency - - - - - - - - - - - Maintenance - - - - - - - - - - - TOTAL 1,715,179 - 55,372 29,023 161,018 772,070 369,221 147 237 5,452,376 8,554,643 - 32 - THE SOCIAL INVESTMENT FUND OF BELIZE PROJECT EXPENDITURES BY FUNDING SOURCE (CATEGORIES) (CONTINUED) FOR THE YEAR ENDED MARCH 31, 2019 CDB CDB WORLD 2019 2018 GOB CDI BNTF 7 BNTF 8 BNTF 9 EU CRIP LOAN II LOAN III BANK/ IBRD TOTAL TOTAL Expenditures: $ $ $ $ $ $ $ $ $ $ $ Advertisement 41,882 - - - - - - - - - 41,882 39,474 Audit fees 14,290 - - - - - - - - - 14,290 17,210 Bank charges 3,261 - - - - - - - - - 3,261 2,909 Board of Directors 26,473 - - - - - - - - - 26,473 24,562 Computer 11,790 - - - - - - - - - 11,790 16,952 Consultancy Services 25,746 - 53,495 35,663 28,774 287,180 82,785 - - 4,578,545 5,092,188 5,243,009 Fuel - - - - - - - - - - - - Furniture and equipment 13,467 - - - - - - - - - 13,467 8,266 Gratuity 164,383 - - - - - - - - - 164,383 193,404 Insurance 93,913 - - - - - - - - - 93,913 83,184 Leasehold improvements - - - - - - - - - - - - Legal Fees 2,869 - - - - - - - - - 2,869 12,050 Licensing - - - - - - - - - - - - Maintenance 14,730 - - - - - - - - - 14,730 71,035 Miscellaneous 83,737 - - - - - - - - - 83,737 93,683 Project management support/Operating cost - - 388 (6,640) 132,244 83,304 286,436 147 237 873,831 1,369,947 1,200,275 Postage 1,781 - - - - - - - - - 1,781 1,598 Promotional expense 20,073 - - - - - - - - - 20,073 22,389 Rental 51,962 - - - - - - - - - 51,962 43,390 Salaries 695,917 - - - - - - - - - 695,917 672,761 Social Security employer's contribution 20,115 - - - - - - - - - 20,115 20,360 Staff advance - personal loans 15,317 - - - - - - - - - 15,317 (3,546) Subscriptions 3,856 - - - - - - - - - 3,856 - Supplies 13,942 - - - - - - - - - 13,942 14,171 Training 14,744 - - - - - - - - - 14,744 15,392 Travel 97,939 - - - - - - - - - 97,939 111,965 Utilities 83,020 - - - - - - - - - 83,020 77,924 Vehicle 199,972 - - - - - - - - - 199,972 127,382 Projects - - 1,489 - - 401,586 - - - 403,075 10,037,385 TOTAL 1,715,179 - 55,372 29,023 161,018 772,070 369,221 147 237 5,452,376 8,554,643 18,147,184 - 33 - THE SOCIAL INVESTMENT FUND OF BELIZE CLIMATE RESILIENT INFRASTRUCTURE PROJECT (8416 BZ) CUMULATIVE SOURCES AND USES OF FUNDS STATEMENT (BZ) MARCH 31, 2019 Direct Payment Actual Year to Actual Description by World Bank Allocation Date Cumulative $ $ $ RECEIPTS World Bank 2,994,300 - - 8,296,411 Direct Payment by World Bank - 1,676,624 - 4,179,152 Direct Payment( PPF Charge & Front End Fee) - - - 161,341 Total Receipts 2,994,300 1,676,624 - 12,636,904 LESS EXPENDITURES (by Components) 1. GO, Non-CW, CS 635,534 - 43,000,000 3,709,650 2. GO, CW, Cs & TRG 3,943,011 - 9,850,000 5,680,388 3. GO, CS, Non-CS 856,955 - 4,000,000 2,260,610 4. Emergency Component - - 2,000,000 - 5. PPF Refinancing - - 1,000,000 734,880 6. Front End Fee - - 150,000 150,000 Total 5,435,500 - 60,000,000 12,535,528 BANK BALANCES OPENING CASH BALANCE 865,952 CLOSING CASH BALANCE 101,376 - 34 - THE SOCIAL INVESTMENT FUND OF BELIZE CLIMATE RESILIENT INFRASTRUCTURE PROJECT (8416 BZ) CUMULATIVE SOURCES AND USES OF FUNDS STATEMENT (US) MARCH 31, 2019 Direct Payment Actual Year to Actual Description by World Bank Allocation Date Cumulative $ $ $ RECEIPTS World Bank 1,500,000 - - 4,156,360 Direct Payment by World Bank - 839,907 - 2,093,554 Direct Payment( PPF Charge & Front End Fee) - - - 80,671 Total Receipts 1,500,000 839,907 - 6,330,585 LESS EXPENDITURES (by Components) 1. GO, Non-CW, CS 318,372 - 21,500,000 1,858,356 2. GO, CW, Cs & TRG 1,975,259 - 4,925,000 2,845,601 3. GO, CS, Non-CS 429,293 - 2,000,000 1,132,457 4. Emergency Component - - 1,000,000 - 5. PPF Refinancing - - 500,000 368,129 6. Front End Fee - - 75,000 75,000 Total 2,722,924 30,000,000 6,279,543 BANK BALANCES OPENING CASH BALANCE 434,059 CLOSING CASH BALANCE 51,042 - 35 - THE SOCIAL INVESTMENT FUND OF BELIZE DESIGNATED ACCOUNT RECONCILIATION STATEMENT, LOAN NO. 84160 MARCH 31, 2019 DESIGNATED ACCOUNT RECONCILIATION Loan No: 84160 Bank's Name: Scotiabank (Belize) Ltd. US $ 1 Amount advanced by World Bank 3,793,902 2 Less total amount recovered by World Bank 3,499,661 3 Current outstanding amount advanced to DA 294,241 4 Amount in Designated Account at 03/31/2019 (as per bank statement) 51,042 5 Plus amount of eligible expenditure documented in current application No__62 243,199 6 Plus amounts claimed in previous application not yet credited at date of bank statement - 7 Plus amounts withdrawn after date of bank statement not submitted to the WB - 8 Less debited amounts after date of bank statement - 9 Less interests generated in the Designated Account - 10 Total advance accounted for (4 + 5 + 6 + 7+ 8 - 9 ) 294,241 11 Difference to be accounted for - - 36 - THE SOCIAL INVESTMENT FUND OF BELIZE GOB PROJECT EXPENDITURES REPORT (DETAILED) FOR THE YEARS ENDED MARCH 31, 2019 AND 2018 2019 2018 Expenditures: Advertisement $ 41,882 $ 39,474 Audit fees 14,290 17,210 Bank charges 3,261 2,909 Board of Directors 26,473 24,562 Computer 11,790 16,952 Consultancy services 25,746 11,861 Fuel - - Furniture and equipment 13,467 8,266 Gratuity 164,383 193,404 Insurance 93,913 83,184 Leasehold improvements - - Legal fees 2,869 12,050 Licensing - - Maintenance 14,730 (6,533) Miscellaneous 83,737 93,683 Operating cost - - Postage 1,781 1,598 Promotional expense 20,073 22,389 Rental 51,962 43,390 Salaries 695,917 672,761 Social Security employer's contribution 20,115 20,360 Staff advance – personal loans 15,317 (3,546) Subscriptions 3,856 - Supplies 13,942 14,171 Training 14,744 15,392 Travel 97,939 111,965 Utilities 83,020 77,924 Vehicle 199,972 127,382 Projects - - - - TOTAL $1,715,179 $1,600,808 - 37 - THE SOCIAL INVESTMENT FUND OF BELIZE CDI PROJECT EXPENDITURES REPORT (DETAILED) FOR THE YEARS ENDED MARCH 31, 2019 AND 2018 2019 2018 Expenditures: Advertisement $ - $ - Audit fees - - Bank charges - - Board of Directors - - Computer - - Consultancy services - - Fuel - - Furniture and equipment - - Gratuity - - Insurance - - Leasehold improvements - - Legal Fees - - Licensing - - Maintenance - - Miscellaneous - - Project management support/operating cost - 482 Postage - - Promotional expense - - Rental - - Salaries - - Social Security employer's contribution - - Staff advance – personal loans - - Subscriptions - - Supplies - - Training - - Travel - - Utilities - - Vehicle - - Projects - - 881 TOTAL $ - - $1,363 - 38 - THE SOCIAL INVESTMENT FUND OF BELIZE BNTF 7 PROJECT EXPENDITURES REPORT (DETAILED) FOR THE YEARS ENDED MARCH 31, 2019 AND 2018 2019 2018 Expenditures: Advertisement $ - $ - Audit fees - - Bank charges - - Board of Directors - - Computer - - Consultancy services 53,495 441,476 Fuel - - Furniture and equipment - - Gratuity - - Insurance - - Leasehold improvements - - Legal fees - - Licensing - - Maintenance - - Miscellaneous - - Project management support/operating cost 388 202,229 Postage - - Promotional expense - - Rental - - Salaries - - Social Security employer's contribution - - Staff advance – personal loans - - Supplies - - Training - - Travel - - Utilities - - Vehicle - - Projects 1,489 3,697,269 TOTAL $55,372 $4,340,974 - 39 - THE SOCIAL INVESTMENT FUND OF BELIZE BNTF 8 PROJECT EXPENDITURES REPORT (DETAILED) FOR THE YEARS ENDED MARCH 31, 2019 AND 2018 2019 2018 Expenditures: Advertisement $ - $ - Audit fees - - Bank charges - - Board of Directors - - Computer - - Consultancy services 35,663 110,002 Fuel - - Furniture and equipment - - Gratuity - - Insurance - - Leasehold improvements - - Legal fees - - Licensing - - Maintenance - - Miscellaneous - - Project management support/operating cost (6,640) 3,637 Postage - - Promotional expense - - Rental - - Salaries - - Social Security employer's contribution - - Staff advance – personal loans - - Supplies - - Training - - Travel - - Utilities - - Vehicle - - Projects - - 2,408,828 TOTAL $29,023 $2,522,467 - 40 - THE SOCIAL INVESTMENT FUND OF BELIZE BNTF 9 PROJECT EXPENDITURES REPORT (DETAILED) FOR THE YEARS ENDED MARCH 31, 2019 AND 2018 2019 2018 Expenditures: Advertisement $ - $ - Audit fees - - Bank charges - - Board of Directors - - Computer - - Consultancy services 28,774 - Fuel - - Furniture and equipment - - Gratuity - - Insurance - - Leasehold improvements - - Legal fees - - Licensing - - Maintenance - - Miscellaneous - - Project management support/operating cost 132,244 - Postage - - Promotional expense - - Rental - - Salaries - - Social Security employer's contribution - - Staff advance – personal loans - - Supplies - - Training - - Travel - - Utilities - - Vehicle - - Projects - - - - TOTAL $161,018 $ - - - 41 - THE SOCIAL INVESTMENT FUND OF BELIZE CDB LOAN II PROJECT EXPENDITURES REPORT (DETAILED) FOR THE YEARS ENDED MARCH 31, 2019 AND 2018 2019 2018 Expenditures: Advertisement $ - $ - Audit fees - - Bank charges - - Board of Directors - - Computer - - Consultancy services 287,180 284,591 Fuel - - Furniture and equipment - - Gratuity - - Insurance - - Leasehold improvements - - Legal fees - - Licensing - - Maintenance - 77,568 Miscellaneous - - Project management support/operating cost 83,304 260,461 Postage - - Promotional expense - - Rental - - Salaries - - Social Security employer's contribution - - Staff advance – personal loans - - Supplies - - Training - - Travel - - Utilities - - Vehicle - - Projects 401,586. 3,930,406 TOTAL $772,070 $4,553,026 - 42 - THE SOCIAL INVESTMENT FUND OF BELIZE CDB LOAN III PROJECT EXPENDITURES REPORT (DETAILED) FOR THE YEARS ENDED MARCH 31, 2019 AND 2018 2019 2018 Expenditures: Advertisement $ - $ - Audit fees - - Bank charges - - Board of Directors - - Computer - - Consultancy services 82,785 - Fuel - - Furniture and equipment - - Gratuity - - Insurance - - Leasehold improvements - - Legal fees - - Licensing - - Maintenance - - Miscellaneous - - Project management support/operating cost 286,436 39,925 Postage - - Promotional expense - - Rental - - Salaries - - Social Security employer's contribution - - Staff advance – personal loans - - Supplies - - Training - - Travel - - Utilities - - Vehicle - - Projects - - - - TOTAL $369,221 $39,925 - 43 - THE SOCIAL INVESTMENT FUND OF BELIZE EU PROJECT EXPENDITURES REPORT (DETAILED) FOR THE YEARS ENDED MARCH 31, 2019 AND 2018 2019 2018 Expenditures: Advertisement $ - $ - Audit fees - - Bank charges - - Board of Directors - - Computer - - Consultancy services - - Fuel - - Furniture and equipment - - Gratuity - - Insurance - - Leasehold improvements - - Legal fees - - Licensing - - Maintenance - - Miscellaneous - - Project management support/operating cost 147 209 Postage - - Promotional expense - - Rental - - Salaries - - Social Security employer's contribution - - Staff advance – personal loans - - Supplies - - Training - - Travel - - Utilities - - Vehicle - - Projects - - - - TOTAL $147 $209 - 44 - THE SOCIAL INVESTMENT FUND OF BELIZE WORLD BANK/ IBRD (BMDP) PROJECT EXPENDITURES REPORT (DETAILED) FOR THE YEARS ENDED MARCH 31, 2019 AND 2018 2019 2018 Expenditures: Advertisement $ - $ - Audit fees - - Bank charges - - Board of Directors - - Computer - - Consultancy services - (1,679) Fuel - - Furniture and equipment - - Gratuity - - Insurance - - Leasehold improvements - - Legal fees - - Licensing - - Maintenance - - Miscellaneous - - Operating cost 237 68,353 Postage - - Promotional expense - - Rental - - Salaries - - Social Security employer's contribution - - Staff advance – personal loans - - Supplies - - Training - - Travel - - Utilities - - Vehicle - - Projects - . - . TOTAL $237 $66,674 - 45 - THE SOCIAL INVESTMENT FUND OF BELIZE WORLD BANK/ IBRD (CRIP) PROJECT EXPENDITURES REPORT (DETAILED) FOR THE YEARS ENDED MARCH 31, 2019 AND 2018 2019 2018 Expenditures: Advertisement $ - $ - Audit fees - 2,245 Bank charges - - Board of Directors - - Computer - 13,585 Consultancy services 4,578,545 4,891,849 Fuel - - Furniture and equipment - 8,509 Gratuity - - Insurance - - Leasehold improvements - - Legal fees - - Licensing - - Maintenance - - Miscellaneous - - Project management support/operating cost 873,831 100,102 Postage - - Promotional expense - - Rental - - Salaries - - Social Security employer's contribution - - Staff advance – personal loans - - Supplies - - Training - - Travel - - Utilities - - Vehicle - - Projects - - - - TOTAL $5,452,376 $5,021.737 - 46 - www.csb.bz © 2019 CSB & Associates, LLP All Rights reserved. AUDIT | TAX | OUTSOURCING | CONSULTING