MINISTRY OF NATIONAL DEVELOPMENT PLAtNNING ZAMBIA PILOT PROGRAMME FOR CLIMATE RESILIENCE IDA TRUST FUND No. TF14588-STRENGTIIENING CLIMATE RESILIENCE - PILOT PROGRAM FOR CLIMATE RESILIENCE II (PPCR II) FINANCIAL STATEMENTS FOR THE YEAR ENDED 31' DECEMBER, 2018 HVAU CR INFRAL MINISI'10'01i 'NATIION kt, 1)DIlI'\1I.NiNT I'l-A NNTIC ZAMBIA PILOT PROGRAMME FOR CLIMATE RESILIENCE IDA TRUST FUND NO. TF14588 - STRENGTHENING CLIMATE RESILIENCE - PILOT PROGRAM FOR CLIMATE RESILIENCE II (PPCR II) FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2018 ZAMBIA PILOT PROGRAMME FOR CLIMATE RESILIENCE - IDA TRUST FUND NO. TF14588 - STRENGTHENING CLIMATE RESILIENCE - PILOT PROGRAM FOR CLIMATE RESILIENCE II (PPCR II) Statement of Sources and Utilization of Funds for the Year Ended 3P' December 2018 Table of Contents Page Table of Contents.................................... Statement of Programme M anagement's Responsibilities....................................................... 2 Independent A uditor's R eport................................................ --...... --......... ............................ 3-5 Statement of Sources and Utilization of Funds for the Year Ended 3 1" December 2018.............. 6 Uses of Funds by Component Statement for the Year Ended 3l1 December 2018 7-8 Notes to and forming part of the Financial Statements for the Financial Year ended 31S" D ecem ber 20 18....... ........................b. . . . . . ..-1...................................... ... 9-15 Page 1 ZAMBIA PILOT PROGRAMME FOR CLIMATE RESILIENCE - IDA TRUST FUND NO. TF14588 - STRENGTHENING CLIMATE RESILIENCE - PILOT PROGRAM FOR CLIMATE RESILIENCE II (PPCR II) STATEMENT OF PROGRAMME MANAGEMENT'S RESPONSIBILITIES The Zambia Pilot Programme for Climate Resilience (ZPPCR) management is responsible, on behalf of the Controlling Officer for Ministry of National Development Planning, for the preparation of the Statement of Sources and Utilization of Funds which gives a true and fair view of the state of affairs of ZPPCR. In preparing the Statement of Sources and Utilization of Funds, the Programme Management: * selects suitable accounting policies and then applies them consistently * makes judgments that are reasonable and prudent; and * follows International Public Sector Accounting Standards (IPSASs) Cash basis of accounting The Statement of Sources and Utilization of Funds is prepared on a cash basis of accounting in accordance with IPSAS. The Programme Management is responsible for ensuring that the ZPPCR Project keeps accounting records, registers and other relevant documents which disclose with reasonable accuracy at any time the financial position and activities of the Programme as required by the Financing Agreement. Management is responsible for taking reasonable steps for the prevention and detection of errors, fraud and other irregularities. The Programme Management is also responsible for the systems of internal controls designed to provide reasonable, but not absolute assurance as to the reliability of the financial statements and to adequately safeguard, verify and maintain accountability for assets, and to prevent and detect material misstatements. The systems are implemented and monitored by suitably trained personnel with appropriate segregations of authority and duties. Nothing has come to the attention of the Programme Management to indicate that any material breakdown in the functioning of these controls, procedures and systems has occurred during the year under review. In the opinion of the Programme Management, the Statement of Sources and Utilization of Funds is drawn up so as to present fairly the financial activities for the financial year ended 31" December 2018. Signed on behalf of the Programme Management by: Chola J. Chabala Chitembo K. Chunga Permanent Secretary - DPA National Coordinator - PPCR Ministry of National Development Planning Ministry of National Development Planning D ate:.......................... D ate:...... . ....... Page 2 OFFICE OF THE AUDITOR GENERAL INDEPENDENT AUDITOR'S REPORT STIAND No. 7951 HAILE SELASSIE AVENUE, LONGACRES P.O BOX 50071 LUSAKA, ZAMBIA E-mail: Ii ., n ' I. j Websitc:www.ago.gov.zm Telephone: +260252611/252771 To the Permanent Secretary, Ministry of National Development Planning Report on the Audit of the Financial Statements Opinion I have audited the financial statements of the Strengthening Climate Resilience in Barotse Sub- basin (SCReB) Project under the Pilot Programme for Climate Resilience (PPCR), which comprise the Statement of Sources and Utilization of Funds for the financial year ended 3 1' December 2018, and notes to the financial statements, including a summary of significant accounting policies as set out on pages 6 to 15. In my opinion, the accompanying financial statements of the Strengthening Climate Resilience in Barotse Sub-basin (SCReB) Project are prepared, in all material respects, in accordance with International Public Sector Accounting Standards (IPSASs) Cash Basis of Accounting and Financing Agreements between the International Development Association and the Government of the Republic of Zambia. Basis for Opinion I conducted my audit in accordance with International Standards of Supreme Audit Institutions (ISSAIs). My responsibilities under these standards are further described in the Auditor's Responsibilities for the audit of the Financial Statements section of my report. I am independent of the Strengthening Climate Resilience in Barotse Sub-basin (SCReB) Project in accordance with the International Organization of Supreme Audit Institutions (INTOSAI) Code of Ethics together with the ethical requirements that are relevant to my audit of the Financial Statements in Zambia, and I have fulfilled my other ethical responsibilities in accordance with these requirements and the INTOSAI Code. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion. Page 13 OFFICE OF THE AUDITOR GENERAL Responsibilities of Management and Those Charged with Governance for the Financial Statements Management is responsible for the preparation of the financial statements in accordance with International Public Sector Accounting Standards (IPSASs) Cash Basis of Accounting and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is responsible for assessing the Project's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the project or to cease operations, or has no realistic alternative but to do so. Those charged with governance are responsible for overseeing the project's financial reporting process. Auditor's Responsibilities for the Audit of the Financial Statements My objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes my opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISSAls will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. As part of an audit in accordance with ISSAls, I exercise professional judgment and maintain professional skepticism throughout the audit. I also: * Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for my 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 project's internal control. * Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. * 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. Page 4 OFFICE OF THE AUDITOR GENERAL I 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 I identify during my audit. I also provide those charged with governance with a statement that I have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on my independence, and where applicable related safeguards. Report on Other Legal and Regulatory Requirements In my opinion, the Statement of Sources and Utilization of Funds of the Strengthening Climate Resilience in Barotse Sub-basin (SCReB) Project has been prepared in accordance with the International Development Association Financing Agreement. Davison K. Mendamenda ACTING AUDITOR GENERAL OFFICE OF THE AUDITOR GENERAL DAE... ................2019 Page 5 ZAMBIA PILOT PROGRAMME FOR CLIMATE RESILIENCE - IDA TRUST FUND NO. TF14588 - STRENGTHENING CLIMATE RESILIENCE - PILOT PROGRAM FOR CLIMATE RESILIENCE II (PPCR II) Zambia Pilot Program for Climate Resilience Project - Phase II IDF Trust Fund No. TF14588 Statement of Sources and Utilization of Funds for the Year Ended 31st December 2018 2018 2017 Cumulative Notes us $ ZMW us $ ZMW US $ Opening Cash Balances 6 2,210,781.85 22,091,900.81 2,024,213.45 20,034,247.82 - Receipts (IDA Funds) 5 5,579,565.24 57,479,007.23 4,681,855.08 43,640,975.76 20,672,739.95 Receipts from GRZ 5 970,713.57 10,000,000.00 1,292,738.14 12,050.000.00 3,768,189.65 'otal Cash Balances 6 and Receipts 8,761,060.66 89,570,908.04 7,998,806.67 75,725,223.58 24,440,929.60 LESS: Uses of Funds by Category Goods, Works, Non- Consulting Services, Vehicles Consultants 7.1 2,509,967.92 25,856,936.48 1947,361.69 18,151,942.54 9,038,568.95 Services Sub-Proect Grans 7.2 3,763,302.31 38,768,411.45 1,585,675.50 14,780,557.01 6,097,377.18 Training and Operating Costs 7.3 1,506,411.01 15,518,594.26 1,272,792.79 11,864,083.44 5,051,817.75 GRZ Support to 7.4 789,822.57 8,136,515.19 1,172,301.55 10,927,374.46 3,294,248.01 ICCS Total Expenditure 8,569,503.81 88,280,457.38 5,978,131.53 55,723,957.45 23,482,011.89 Cash Available Less 191,556.85 1,290,450.66 2,020,675.14 20,001,266.13 958,917.71 Expenditurehang Foreign Exchange 8 74,618.05 1,883,631.82 190,106. 71 2,090,634.68 (692,742.81) Difference Net Cash .vailable/Closing 266,174.90 3,174,082.48 2,210,781.85 22,091,900.81 266,174.90 Balances Closing Cash 266,174.90 3,174,082.48 2,210,781.85 22,091,910.81 266,174.90 Chola J. Chabala Chitembo K. Chunga Permanent Secretary - DPA National Coordinator - PPCR Ministry of National Development Planning Ministry of National Development Planning D ate: ........D............D. . D ate :....... . . ...... .. ... Page 6 ZAMBIA PILOT PROGRAMME FOR CLIMATE RESILIENCE - IDA TRUST FUND NO. TF14588 - STRENGTHENING CLIMATE RESILIENCE - PILOT PROGRAM FOR CLIMATE RESILIENCE II (PPCR II) Zambia Pilot Program for Climate Resilience Project - Phase II Uses of Funds by Component Statement for the Year Ended 31't December 2018 2018 2017 Cumulative USS ZMW US5 ZMW US$ Component 1: Strategic National Programme Support South-South-North Exchanges 5,018.44 51,698.48 17,758.15 165,529.00 75,214.68 Presentation to Specialized Audience - 2,619.53 Recurring Costs 335,192.50 3,453,052.59 571,838.30 5,330,276.32 2,026,145.37 Program Monitoring and Evaluation 38,857.08 400,294.00 37,518.26 349,719.00 220,456.02 Short-Term Specialized Training 52,912.88 545,092.63 19,175.16 178,737.42 151,310.71 Training for Journalists/Communication 17,105.26 176,213.26 - - 35,263.07 Presentations at International Expert Events 1,807.24 18,617.68 14178.49 132162 17,124.79 Masters/Post-Graduate Degrees 25,560.87 263,320.40 - - 81,054.31 Internship/Participatory Adaption Trainees 140,938.58 1,451,907.00 114,375.05 1,066,124.13 362,097.70 Project Management Staff 653,247.30 6,729,557.76 627,394.38 5,848,131.24 2,936,840.43 GRZ Support to ICCS 789,822.57 8,136,515.19 1,172,301.55 10,927,374.46 3,294,248.03 Equipment & Vehicles 2,575.38 26,530.80 3,307.48 30,830.04 172,890.45 Budget Tracking Tool - - 14,839.88 138,327.00 109,612.20 Green Climate Fund 11th Board Meeting/IDA, CIF Meetings 25,260.38 260,224.90 - - 246,258.84 udit 63,881.40 658,087.00 42,945.20 400,305.07 145,625.99 Annual prizes for best climate change story 15,318.64 157,808.00 13,133.41 122,420.50 37,499.17 Technical Committee/Platforms 613.05 6,315.50 990 85 9,236.00 3,260.00 Social Mareting Campaign 656,233.99 6 760,325.70 370,570.94 3,454,202.92 1,296,726.07 Climate Finance Options Study - 48,387.69 451,036.20 161,546.08 Simplified Impact Assessment Framework Training - - 3,30592 Page 7 ZAMBIA PILOT PROGRAMME FOR CLIMATE RESILIENCE - IDA TRUST FUND NO. TFl4588 - STRENGTHENING CLIMATE RESILIENCE - PILOT PROGRAM FOR CLIMATE RESILIENCE II (PPCR II) Standards, Norms and Procedures for Canal Maintenance - 136,525.53 1,272,595.43 214,268.88 Climate Risk Vulnerability Assessment - Consultant 375,630.28 3,869,630.42 - - 375,630.28 Strengthened Climate Information - DMMU 28,030.00 288,756.62 - - 28,030.00 Screening Guidelines in Key Sectors 420 23 4,329.12 - 420.23 Zomponent 2: Support to Pilot Participatory Adaptation Policy on Strengthened Management of Traditional Canals - 81,629.51 Facilitation and Community Organization 174,551.83 1,798,180.59 81,338.58 758,181.34 452,997.17 Recurring Costs 460,942.72 4,748,493.65 251,959.42 2,348,589.34 1.107,298.61 Provincial PIU Staff 275,011.62 2,833,087.16 306,431.49 2,856,339.81 929,372.83 International Climate Risk Planning Consultant - - - - 79,990.63 Local Climate Risk Planning Consultant - 49,219.77 Equipment & Vehicles - 10,484.59 97,730.00 873,032.78 Climate Risk Adaptation Facilitators 288,738.75 2,974,500.00 134,075.45 1,249,757.50 779,431.65 Climate Risk TOT Workshops/Training 106,063.92 1,092,638.64 101,180.82 943,136.80 473,309.39 Specialized Mentorship - 1,118.49 Zambia Integrated Forest Landscape Project - . 51,612.04 fainstreaming of District Plans - Consultants - 100,505.75 936,844.20 100,505.75 Mainstreaming of District Plans - Workshops 272,466.57 2,806,868.84 201,239.60 1,875,814.72 473,706.17 -Component 3: Pilot Participatory Adaptation Grants to Districts 708,139.81 7,295,043.83 299,074.50 2,787,763.00 1,007,214.31 Grants to Wards 492,388.54 5,072,438.98 46,166.84 430,335.00 561,408.90 Grants to Communities 996,115.16 10,261,679.59 1,239,946.04 11,557,909.01 2,961,607.06 Champions 5.594.22 57,630.00 488.13 4,550.00 6,082.35 Canal Rehabilitation 1,502,396.54 15,477,238.44 - - 1,502,396.54 Contingency Adaptation 58,668.05 604,380.61 58,668.05 Total Expenditures 8,569,503.81 88,280,457.38 j5,978,131.53 55,723,957.45 23,548,050.76 Page 8 ZAMBIA PILOT PROGRAMME FOR CLIMATE RESILIENCE - IDA TRUST FUND NO. TF14588 - STRENGTHENING CLIMATE RESILIENCE - PILOT PROGRAM FOR CLIMATE RESILIENCE II (PPCR II) Notes to and forming part of the Financial Statements for the Financial Year ended 31st December 2018 1. Background On 141h June 2013, the Government of the Republic of Zambia and International Development Association signed a Grant Agreement - TF14588 for the Strengthening Climate Resilience (PPCR) Phase II Project under the Ministry of Finance. Further, on 22nd August 2018, another Grant Agreement - TF0A7482-ZM was signed for additional financing of US$1,100,000 to the original Grant Agreement TF14588. The additional financing imbedded within the original components is meant to support activities related to the original Project. The Project has three (3) components: i. Component 1: Strategic National Program Support which aims to strengthen the national institutional and financial framework for climate resilience, thus providing the umbrella for long-term transformational change in Zambia. ii. Component 2: Support to Participatory Adaptation. This component is intended to strengthen the adaptive capacity of vulnerable rural communities in the Barotse sub- basin, through facilitation and strengthening of community decision-making and specialized technical assistance and training to Western Province and district councils, iii. Component 3: Pilot Participatory Adaptation. This component will fund actual participatory adaptation investments in the Barotse sub-basin. Project operations started on P1 October 2013. The Project Designated Account denominated in US Dollars is maintained at Bank of Zambia, Lusaka, while a Kwacha operations account is held at Zambia National Commercial Bank, Acacia Branch. Funds from the International Development Association are remitted by the World Bank in the Designated Account and transferred into the Kwacha Account for operations using the ruling exchange rate. 2. Statement of Compliance The Financial Statements have been prepared in accordance with International Public Sector Accounting Standards (IPSAS) cash basis of accounting. 3. Significant Accounting Policies Significant accounting policies adopted in the preparation of these financial statements and applied in all material respects, are set out below: 4. Basis of financial statement preparation Page 9 ZAMBIA PILOT PROGRAMME FOR CLIMATE RESILIENCE - IDA TRUST FUND NO. TF14588 - STRENGTHENING CLIMATE RESILIENCE - PILOT PROGRAM FOR CLIMATE RESILIENCE II (PPCR II) The Statement of Sources and Utilization of Funds were prepared under historical cost convention. 5. Sources of Funds The source of funds for the Project is the International Development Association (IDA) - World Bank. The initial total Project Grant was US $31,000,000 for the Project duration of Six (6) years to 31s" December 2019, however, additional finance of $1,100,000 was granted in August 2018 bringing the total Project amount to K32,100,000. Further, the Project will now run until 31 " December 2022. During the twelve (12) month period to 31" December 2018, the Project received US$5,579,565.24 (K57,479,007.23) totaling up to US$20,672,739.95 disbursement under PPCR Phase 11 todate. The Government of the Republic of Zambia also disbursed a total amount of K10,000,000 (US$970,713.57) as counterpart funding to the Project, bringing the total disbursement todate to K37,8 18,759.33 counterpart funding. 6. Opening Balances 2018 2017 us$ ZMW US$ ZMW Designated Account 1,501,231.64 15,001,507.53 286,502.00 2,835,596.24 Operating Account 50,494.90 504,585.43 937,875.40 9,282,434.35 Disaster Mitigation 182,893.20 1,827,615.18 Management Unit 203502.30 2,014,123.28 Counter Part - GRZ 396,371.34 3,960,859.50 564,965.94 5,591,637.37 PIu & Districts 79,790.77 797,333.17 31,367.81 310,456.58 Total 2210,781.85 22,091,900.81 2,024,213.45 20,034,247.82 Page 10 ZAMBIA PILOT PROGRAMME FOR CLIMATE RESILIENCE - IDA TRUST FUND NO. TF14588 - STRENGTHENING CLIMATE RESILIENCE - PILOT PROGRAM FOR CLIMATE RESILIENCE II (PPCR II) 7. Expenditure Expenditure has been captured using the Cash basis of accounting in accordance with International Public Sector Accounting Standards. Revenue and Expenditure recorded during the year has been translated at an average rate of I US$ = K10.3017. Project expenditure was paid out of the operations account at Zambia National Commercial Bank, Acacia Branch. Expenditure by category is shown below. 7.1 Goods, Works, Non-Consulting Services, Vehicles, Consultant Services The following is the breakdown for Category I items - Goods, Works, Non-Consulting Services, Consulting Services undertaken during the 12 month period to 31 "December 2018. 2018 2017 Cumulative 2018 2017uss us S ZMW us15 ZMW Goods 2,575.38 26,530.80 13,792.07 128,560.04 136,245.86 Vehicles - - - 909,677.29 Consultants Services 2,454,102.15 25,281,424.16 1,719,030.75 16,023,601.43 7,284,437.22 Non- Consulting Services 53,290.38 548,981.52 214,538.87 1,999,781.07 708,208.57 Total 2,509,967.92 25,856,936.48 1,947,361.69 18,151,942.54 9,038,568.95 7.2 Sub-Project Grants The project continued to give Sub-Project Grants in 2018, further, grants to wards, district and community champions were also disbursed during the year under review. See table below. 2018 2017 Cumulative UsS ZMW us5 ZMW us$ Grants to Districts 708,139.81 7,295,043.83 299,074.49 2,787,763.00 1,007,214.30 Grants to Wards 492,388.54 5,072,438.98 46,166.84 430,335.00 561,408.89 Grants to Communities 996,115.16 10,261,679.59 1,239,946.04 11,557,909.01 2,961,607.06 Champions 5,594.22 57,630.00 488.13 4,550.00 6,082.35 Canal Rehabilitation 1,502,396.54 15,477,238.44 - - 1,502,396.54 Contingency Adaptation 58,668.05 604,380.61 - - 58,668.05 Total 3,763,302.31 38,768,411.45 1,585,675.50 14,780,557.01 6,097,377.18 Page 111 ZAMBIA PILOT PROGRAMME FOR CLIMATE RESILIENCE - IDA TRUST FUND NO. TF14588 - STRENGTHENING CLIMATE RESILIENCE - PILOT PROGRAM FOR CLIMATE RESILIENCE II (PPCR II) 7.3 Training and Operating Costs 2018 2017 Cumulative US$ ZMW US$ ZMW US$ South-South-North 5,018.44 51,698.48 17,758.15 165,529.00 94,744.10 Exchanges Workshops/Mainstreaming 273,079.62 2,813,184.34 202,230.45 1,885,050.72 667,648.96 of District Plans/Platforms Institutional Strengthening 834,992.31 8,601,840.24 823,797.72 7,678,865.66 3,124,424.54 - Recurring Costs Intern Training Programme - - - 50,178.98 Short-Term Specialized 52,912.88 545,092.63 19 175.17 178,737.42 106,577.23 Training for Training for 17,105.26 176,213.26 - 35,263.07 Journalists/Communi cation ______ Presentations at International Expert Events 1,807.24 18,617.68 14,178.49 132,162 17,124.79 Masters/Post-Graduate 25,560.87 263,320.40 - 81,054.31 Degrees Climate Risk TOT Workshops/Training 06,063.92 ,092,638.64 101,180.82 943,136.80 407,270.52 Infrastructure Engineer - 452.05 Training 452.05 M & E Training - - - 66,904.57 Office Assistants Training - - - 2,915.14 SEA Training - - - 14,146.29 Procurement Training - - - 944.39 Climate Change Media 15,318.64 157,808.00 13,133,41 122,420.50 37,499. 7 Awards Facilitation and Community Organization 174,551.83 1,798,180.59 81,338.58 758,181.34 343,550.87 Mentorship - _ _ - 1,118.49 i Total 1,506,411.01 15,518,594.26 1,272,792.79 11,864,083.44 5,051,817.47 Page 12 ZAMBIA PILOT PROGRAMME FOR CLIMATE RESILIENCE - IDA TRUST FUND NO. TF14588 - STRENGTHENING CLIMATE RESILIENCE - PILOT PROGRAM FOR CLIMATE RESILIENCE II (PPCR II) 7.4 GRZ Support to ICCS 2018 2017 Cumulative US$ ZMW USS ZMW US$ Stakeholders Engagement/Technical - - - - 39,058.55 Committee Meeting Transport and Cranpom natn 5,169.05 53,250.03 12,507.05 116,582.00 51,566.34 Communication Project Management 359,935.27 3,707,945.12 737,512.14 6,874,571.78 2,008,379.37 Staff SCRiKA - - - - 29,009.02 Staff International Travel 981.75 10,113.73 8,369.24 78,012.22 120,462.17 Planning & Monitoring - - - - 46,759.69 Technical Committee - - - 601.56 Canals Rehabilitation ---- 13,870.15 Adverts Green Climate Fund Board Meeting - - - 9,721.35 Preparatory Workshops NDA/GCF Consultancy ---- 6,131.10 Advert Environmental Sustainability Workshop - 4,156.24 Zambia Forest Project Preparatory/Displaced - - - - 10,749.56 Persons Trade Fair/Agricultural Showe Pairrict 19,032.32 196,065.25 43,455.58 405,062.51 71,907.62 Show ParticipationI Goods 3,679.00 37,900. 00 4,376.21 40,792.00 114,768.78 Zambia - Transforming Landscapes for 87,951.26 819,820.10 87,951.26 Resilience and Development Country Climate Change 32,974.08 2,400,029.03 278,130.07 2,592,533.85 511,104.15 Initiatives Safeguards Audit Consultancy 33,347.89 343,539.98 Motor Vehicles 131,117.00 1,350,728.00 - - 131,117.00 Audit Committee 3,586.21 36,944.05 - - 3,586.21 Total 789,822.57 8,136,515.19 1,172,301.55 10,927,374.46 3,294,248.01 Page 13 ZAMBIA PILOT PROGRAMME FOR CLIMATE RESILIENCE - IDA TRUST FUND NO. TF14588 - STRENGTHENING CLIMATE RESILIENCE - PILOT PROGRAM FOR CLIMATE RESILIENCE II (PPCR II) 8. Foreign Currency Exchange Difference 2018 2017 US$ ZMW US$ ZMW Total Cash Balances and 8,761,060.66 89,570,908.04 7,998,806.67 75,725,223.58 Receipts Total Expenditure 8,569,503.81 88,280,457.38 5,978,131.53 55,723,957.45 Total Cash Balances and 191,556.85 1,290,450.66 2,020,675.14 20,001,266.13 Receipts Less Expenditure Actual Closing Cash 266,174.90 3,174,082.48 2,210,781.85 22,091,900.81 Balances (See Note 9) Foreign Currency Exchange Difference 74,618.05 1,883,631.82 190,106.71 2,090,634.68 9. Cash and Cash equivalent (Closing Cash Balances) The cash balances as at 3P' December 2018 was translated to Kwacha and US dollar at an exchange rate of I US$ = KIl 1.9248 (Bank of Zambia mid-rate). The cash and cash equivalents as at 31 "December 2018 were as follows 2018 2017 USS ZMW US$ ZMW Designated Account 4,979.47 59.379. 18 1,501,231.64 15,001,507.53 Operating Account 62,268.74 742,542.27 50,494.90 504,585.43 Disaster Mitigation 158885 Miastem itigan 129,046.91 182,893.20 1,827,615.18 Management Unit 1,538,858.56 Counter Part - GRZ 25,236.41 300,939.16 396,371.34 3,960,859.50 PJU & Districts 44,643.37 532,36331 79,790.77 797,333.17 Total 266,174.90 1 3,174,082.48 2,210,781.85 22,091,900.81 10. Contingent liabilities There were no contingent liabilities as at 31" December 2018. 11. Post Reporting Period events There were no significant events after the balance sheet date requiring adjustment to the accounts or disclosure. Page 14 ZAMBIA PILOT PROGRAMME FOR CLIMATE RESILIENCE - IDA TRUST FUND NO. TF14588 - STRENGTHENING CLIMATE RESILIENCE - PILOT PROGRAM FOR CLIMATE RESILIENCE II (PPCR II) 12. Cumulative Balances These are balances that have accumulated from inception of the project to the date of reporting. The total comparative figures are as indicated in the table below: Year Opening Funding Total Cash Total Foreign Closing Balances Balances and Expenditure Exchange Cash Receipts - -Difference Balances 2013 - 3,000,000.00 3,000,000.00 (44,338.33) 749.67 2,956,411.34 2014 2,956,411.34 1,656,354.69 4,612,766.03 (2,105,037.54) (408,225.29) 2,099,503.20 2015 2,099,503.20 2,200,579.14 4,300,082.34 (2,487,210.90) (774,767.49) 1,038,103.95 2016 1,038,103.95 5,059,123.74 6,097,227.69 (4,297,789.78) 224,775.54 2,024,213.45 2017 2,024,213.45 5,974,593.22 7,998,806.67 (5,978,131.53) 190,106.71 2,210,781.85 2018 2,210,781.85 6,550,278.81 8,761,060.66 (8,569,503.81) 74,618.05 266,174.90 Cumulative 24,440,929.60 (23,482,011.89) (692,742.81) 266,174.90 Page 1 15