D e lo itte Deloitte Touche TohmatsuLevel 1, Heritage Park

Commercial Buitding,

Mendana AvenuePO Box 2397, HonjaraSolomon islands

Tel: +677 27005Fax: +677 27003www.deloitte com.pg

Independent Auditor's Report to the PermanentSecretary of the Ministry of Fisheries and Marine

ResourcesOpinion

We have audited the accompanying Statement of Cash Receipts and Payments (the "'Statement") of the PacificIslands Regional Oceanscape Programme ("PROP") (the "Project") which comprises the Statement of CashReceipts and Payments for the period I January 2016 to 31 December 2016, and a summary of significantaccounting policies and other explanatory information. This Report has been prepared in accordance with theGrant Agreements between International Development Association and Solomon Islands Government GEFTF018607 and between International Bank for Reconstruction and Development and Solomon IslandsGovernment D015-SB dated 29 January 2015(the "Program") for the funding period I January 2016 to 31December 2016.

In our opinion, the accompanying Statement of Cash Receipts and Payments presents fairly, in all materialrespects, the Project's receipts and payments for the year ended 31 December 2016 in accordance with theGrant Agreement and the International Public Sector Accounting Standards (IPSAS): Financial Reportingtinder the Cash Basis of Accounting ("Cash Basis").

Basis for Opinion

We conducted our audit in accordance with the International Standards on Auditing and the requirements ofthe Grant Agreements. Our responsibilities under those standards are further described in the Auditor'sResponsibilities,fbr the Audit of the Statement section of our report. We are independent of the Project inaccordance with the auditor independence requirements of the International Ethics Standards Board (IESBA)Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the Statement. Wehave also fulfilled our other ethical responsibilities in accordance with the Code.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for ouropinion.

Responsibilities ofExecuting Agencyfor the Statement

The Ministry of Fisheries and Marine Resources (the "Executing Agency") is responsible for the preparationand fair presentation of the Statement in accordance with the Grant Agreements and the IPSAS Cash Basisand for such internal control as the Executing Agency determined is necessary to enable the preparation andfair presentation of the Statement and is free from material misstatement, whether due to fraud or error.

Member of Deloitte Touche Tohmatsu Limited

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Deloitte

Awuitor s Responsibiities .fr the Audit f the Statement

Our objectives are to obtain reasonable assurance about whether the Statement as a whole is free from materialmisstatement. whether due to fraud or error, and to issue an auditor's report that includes our opinion.Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordancewith the International Standards on Auditing 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 thisStatement.

As part of an audit in accordance with the International Standards on Auditing, we exercise professionaljudgement and maintain professional scepticism throughout the audit. We also:

* Identify and assess the risks of material misstatement of the Statement, whether due to fraud or error,design and perform audit procedures responsive to those risks, and obtain audit evidence that issufficient and appropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error, as fraud may involvecollusion, 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 proceduresthat are appropriate in the circumstances, but not for the purpose of expressing an opinion on theeffectiveness of the Project's internal control.

* Evaluate the appropriateness of accounting policies used and the reasonableness of accountingestimates and related disclosures made by the Executing Agency.

* Evaluate the overall presentation, structure and content of the Statement, including the disclosures,and whether the Statement represents the underlying transactions and events in a manner that achievesfair presentation.

* Obtain sufficient appropriate audit evidence regarding the financial infonnation of the Project orbusiness activities within the Project to express an opinion on the Statement.

We are responsible for the direction, supervision and perfortmance of the Project's audit. We remain solelyresponsible for our audit opinion.

We communicate with the Executing Agency regarding, among other matters, the planned scope and timingof the audit and significant audit findings, including any significant deficiencies in internal control that weidentify during our audit.

DELOITTE TOUCHE TOHMATSU

Mark ClarkePartnerChartered AccountantsHoniara, 19 June 2018

PACIFIC ISLANDS REGIONAL OCEANSCAPE PROGRAM PROJECT- SOLOMON ISLANDS

P1522938

P151777

MINISTRY OF FISHERIES & MARINE RESOURCESSTATEMENT OF RECEIPTS & PAYMENTSFOR YEAR ENDED 31ST DECEMBER 2016

TABI OF CONTENTS

Pae

Report of the Executing Agency I

Statement of Cash Receipts and Payments 2

Notes to the accounts 3

Pacific Island Regional Oceanscape Program Project - SOLOMON ISLANDSP1522938

P151777

STATEMENT OF CASH RECEIPTS AND PAYMENTSMINISTRY OF FISHERIES & MARINE RESOURCES

Report of the Executing Agency

Under the terms of the contract, I representing Mnistry of Fisheries and Naturai Resources, have the mandate from the World Bank and Ministryof Finance & Treasury (MOFT) as the Executing Agency, to supervise and manage the funds provided by the World Bank and the GlobalEnv ronment Paclity (GEF). The funds are to be utlised as pe- the objective of the program: to strengthen the shared management of selectedPacific fs:ands Oceanic and Coastal fisheries, and the critical habitats upon which they deoend. This will provide the nasis for sustzinable andincreased economic benefits to the country from this -esource.

I certify that tne attached Cash receipts and payments which has been r)epared under my supervision presents a true and fair view of MFMR -

PROP for the year ended 31" Decerne2016.

Dated at Honiara this day of 2018.

Fe.,ralTZPermanent Secretary (Supery sing)Executing Agency Representatve

Ministry of Fsheries & Marine Resources

PACIFIC ISLANDS REGIONA L OCEANSCAPE PROGRAM PROJECT - SOLOMON ISLANDSP1522938P151777

MINISTRY OF FISH ERIES & MAJUNE RESOURCESSTATEMENT OF CASH1 RECE)PfS AND PAYMENTS

2016 Cumulat*

Notes Receipts/ Pyminnts Receipt i Psymnt;mt

SBDS S0D1. RECE[PTS

iDA Grant 4 6,277,000 >.277.}II1lIDA C:edi 4

TOTA. R'CIiTLS 7.277,0000 7.277-00.01

2. PAV MEN1 S

Componvi 1I: Offshore FishedleNE-.pandoed1 P wrii>n i lnten;iona! Tuna et-ii!i

Opcrinion Co. KIi fr Hsheries Srkmicejlwc PaTob 1 62. 11 4 621 0NIonitormsig & C1 ommtun ication Svtcm CeotresEstabi:shmen of ferie L Infioatiin Systems , 27 .734.00 27.7340Equipmen: foi isheies Compiiances Officers 550.16.41 53», 16s4 1EqUIpncm fr>r ishcnes ()bsci-ver 10177.2923 10 .2.

Operation Co:ts fer MCS

Expomsion of Fisherise Compliance Otfñrers 713353a .,.53 131 xp:rs ion of \aiorl OJbservers priogramml>, -

SLcuring Ec,nomy Return; tromn loi,, shene I539 60 152.391 l01stabibshment of Elctic montoring sysieils

ISpecilised Trainmes 304,632 74 304m32 74Tutal payments Comp 1 S,909,560.41 1,909,560.41

Component 2: Inshore fisheries

Coastal Fisher:ns Policy P1aning andl Prioritisation 101,776.00 101 77.00iipliiiieiiation of Srlected Provincial Fishrs Oinoanec -

Resource nlaicgemen: plzmsn ror Sendenan Iligh VaIc ResouresEran Survey of hers. of ats, Gear and Catles-

)eclimemrii and \Iugcmerc ofSlctICed Higli'ahc F sheneos I 13.(05.00 1c3.u0 .111Mitonia Capacity Ikildag and SIppon 30,45113 11.451113

T (jai PaR mnen is C01mp 2 2581324;5,83 13Conpment 3: Project MånagementPersonal 299.35537 20A.358837

Operating Cost; foi Pimject MaragemcuL nit 20D.673 1 200.673 11IEquimpmnt fu PML 7i177o ai 7.70 00Off:ce ror PM61

Mlonlormg & 1xaluoionrOftiic - cc1c]1.\6

Balnk !'ee, &Cýagcr - IDA -. 6 21690

Bank fe & shares - Gr 474o2 474 02Total pay ents Comp 3 5620,074.52 620.074.52

1'TOTAL PAYNMENT S 52.775.466.06 2,775,466,06

3. Cash at beginning of period

Decrease acrease in Cubb 4550)533'4 45»),53 94

Furvigni exchiange differences

:4. Cash at end of period 4,501,533.94 4,51.,533.94

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