statement of receipts and...

cutting through complexity'

Statement of Receipts and Payments

AUDIT

Ministry of EducationEducation Sector Support Fund - FASE

for the year ended 31 December 2014

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Statement of receipts andpayments for the year ended 31 December 2014

Contents

I Introduction I1.1 The Program I1.2 Financing 1

2 Independent auditors report 22.1 Introduction 22.2 Our Engagement 22.3 Reporting 22.4 Summary of results 32.5 Restriction on Distribution or Use 3

3 Management's responsibility statement 4

4 Report on Statement of receipts and payments 5

5 Statement of receipts and payments 75.1 Statement of Funds received from the Donors 75.2 Statement of receipts and payments 85.3 Accounting Policies 95.3.1 Basis of preparation 95.3.2 Accounting convention 95.3.3 Statement of compliance 95.3.4 Currencies 95.3.5 Funds received during the year 105.3.6 Payments through M[NED/MF 105.3.7 Fixed Assets 105.3.8 Expenses and Advances 105.3.9 Balances with districts 105.4 Funds received during the year 115.5 Closing balance 125.6 Receipts and payments of the year 135.7 Payments for goods and services 145.8 Payments for fixed assets (capital goods) 14

6 Report on evaluation of program internal controls 15

7 Report on evaluation of whether the program receipts andpayments are in compliance with the relevant programagreement terms and local laws and regulations 16


Statement ofreceipts and payments for the year ended 31 December 2014

1 Introduction

1.1 The ProgramThe Education Sector Support Fund (FASE) is a Program of the Government of Mozambiquethat is implemented by the Ministry of Education (MINED) that corresponds to the secondphase of the strategic plan of the Government for the Education Sector (ESSP II - EducationSector Strategic Plan - signed on 13 December 2012), formulated in context of the generalprogramme for socio-economic development and poverty reduction strategy.

The ESSP II establishes the vision of the Government of Mozambique for the future of theeducation system in Mozambique emphasizing on the provision of quality basic education to allin the context of the creation of a general system of education that consolidates the progress inthe area of basic education. The programme finances the following fundamental activities:

* Basic education (including primary education, informal and basic education for adults);

* Secondary education (also including academic, technical, vocational education andtraining);

* Training of professors (all levels);

* Higher Education;

* Cross cutting themes (including a gender equality in the education sector, and approach onthe HIV/AIDS issues); and

* Enhancing education (including school sports and use of Information Technology andCommunication - TIC's).

1.2 FinancingFASE is financed by the following donors:

* Canadian International Development Agency - Canada (CIDA)

* Embassy of Ireland;

* Flamenga Corporation;

* Government of the Federal Republic of Germany -KFW

* DFID - United Kingdom;

* World Bank;

* UNICEF;

* Ministry of Foreign Affairs of Portugal;* Cooperation of Italy;* Spanish Cooperation Agency;

* Ministry of Foreign Affairs of Denmark;

* Ministry of Foreign Affairs of Netherlands; and* Ministry of Foreign Affairs of Finland.


Statement of receipts and payments for the year ended 31 December 2014

2 Independent auditors report

2.1 IntroductionKPMG was contracted by the Ministry of Education to conduct the financial audit of theEducation Sector Support Fund - FASE ("Program") for the year ended 31 December 2014.

2.2 Our EngagementThe scope of the financial audit is:

* To perform an audit in accordance with the International Standards on Auditing in order toexpress an opinion on whether the Statement of receipts and payments of the EducationSector Support Fund (FASE) for the year ended 31 December 2014 has been prepared, in allmaterial respects, in accordance with the basis of accounting adopted by FASE.

* To evaluate the design of the program internal controls over the key transaction streams andassess whether the controls have been operating effectively during the year.

* To evaluate whether the program receipts and payments are in compliance with the relevantprogram agreement terms, and local laws and regulations.

2.3 Reporting

We have presented our report as follows:

* Audit of the Statement of receipts and payments (See section 4);

* Evaluation of the program internal controls (See section 6); and

* Evaluation of whether the program receipts and payments are in compliance with therelevant program agreement terms, and local laws and regulations (See section 7).

2

Ministry of EducationEducadon Sector Support Fund - FASE


2.4 Summary of results* Audit of the Statement of receipts and payments - Our report for the year ended

31 December 2014 contains an unmodified opinion.

* Evaluation of the program internal controls- Our report indicates that there aredeficiencies in the design and operation of controls which have come to our attention andthese are dealt with in a separate letter. There is no effect on the Statement of receipts andpayments.

* Compliance with program agreement terms, laws and regulations - Our report indicatesthat there are instances of non-compliance which have come to our attention and these aredealt with in a separate letter. There is no effect on the Statement of receipt and payments.

2.5 Restriction on Distribution or Use

The Statement of receipts and payments is prepared in accordance with the basis of accountingdescribed in note 5.3 to provide information to the donor in accordance with the Memorandumof Understanding signed between donors and the Government of Mozambique, as referred inSection 1. As a result, the Statement of receipts and payments and our reports in Sections 4, 6and 7 may not suitable for another purpose. Our report is intended solely for the donors and maynot be suitable for another purpose and may not be distributed without our written consent. Tothe fullest extent permitted by law, our liability is restricted to those who engaged us.

3



3 Management's responsibility statement

The Management of FASE is responsible for the preparation and presentation of the Statementof receipts and payments for the year ended 31 December 2014 and the accompanying notes, inaccordance with the basis of accounting policies as described in note 5.3.

Management is also responsible for determining that the basis of accounting is an acceptablebasis for preparation and presenting the Statement of receipts and payments in thecircumstances; for such internal control as the management determine is necessary to enable thepreparation of the Statement of receipts and payments that are free from material misstatement,whether due to fraud or error; and for maintaining adequate accounting records and an effectivesystem of risk management.

Management is also responsible for the other internal controls and for compliance with therelevant program agreement terms and local laws and regulations applicable to FASE. Theresponsibility for the prevention and detection of non-compliance rests with management.

Approval of the statement of receipts and payments

The Statement of receipts and payments for the year ended 31 December 2014 and theaccompanying notes, was approved by management on 23 June 2015 and are signed on itsbehalf by

Pef Department

4

KPMG Auditores a Consultores, SA Telefone: +258 (21) 355 200Edificio HOLLARD Telefax: +258 (21) 313 358Rua 1.233, No 72 C Caixa Postal, 2451Maputo, Mogambiquei

Email: mz-fminformation(kpmo com

Web:www.kpmg.co.mz

4 Report on Statement of receipts and payments

Independent auditors report

To the Management of the Education Sector Support Fund (FASE)

We have audited the Statement of receipts and payments of the Education Sector Support Fund

(FASE) for the year ended 31 December 2014 and the accompanying notes, which include a summaryof the basis of accounting and other explanatory notes, set out on pages 7 to 14. The statement ofreceipts and payments prepared for the purpose of providing financial information to the donors.

Management's responsibility for the statement of receipts and payments

The Management of FASE is responsible for the preparation and presentation of the Statement ofreceipts and payments in accordance with the basis of accounting described in note 5.3, fordetermining the acceptability of this basis of accounting in the circumstances, and for such internalcontrol as management determines is necessary to enable the preparation of the Statement of receiptsand payments that are free from misstatement, whether due to fraud or error.

Auditor's responsibility

Our responsibility is to express an opinion on the Statement of receipts and payments based on ouraudit. We conducted our audit in accordance with International Standards on Auditing. Thosestandards require that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance whether the Statement of receipts and payments is free from materialmisstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosuresin the Statement of receipts and payments. The procedures selected depend on the auditor's judgment,including the assessment of the risks of material misstatement of the Statement of receipts andpayments, whether due to fraud or error. In making those risk assessments, the auditor considersinternal control relevant to the Entity's preparation and presentation of the Statement of receipts andpayments in order to design audit procedures that are appropriate in the circumstances, but not for thepurpose of expressing an opinion on the effectiveness of the Entity's internal control. An audit alsoincludes evaluating the appropriateness of accounting policies used and the reasonableness ofaccounting estimates made by management, as well as evaluating the overall presentation of theStatement of receipts and payments.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basisfor our audit opinion.

KPMG AudItors Consuffores, SA, uma socledade an6alma d. Registeda em MorambiqUe sob a deslgnaC4o do, KPMGresponsablldads Imitada, 6 membro da KPMG Intenacional, uma Auditores . Cosuttores. SAcooperative Sula

KPMG AudItores e Consultores, SA, a Mozarbique limited lIability RegIstered in Mozambique, as KPMG Auditorescompany, Is a member of KPMG Intermational, a Swiss cooperative e Consultots, SA

Opinion

In our opinion, the Statement of receipts and payments of the Education Sector Support Fund

(FASE) for the year ended 31 December 2014 has been prepared, in all material respects, in

accordance with the basis of accounting described in note 5.3.



5 Statement of receipts and payments

5.1 Statement of Funds received from the Donors(Values expressed in Meticais)

Funds received from donors in the Forex Account in the Banco de Movambique accountand transferred to MINED Central and Provinces including districts

Accumulated1 January to September 2003 to

31 December 31 December2014 2014

Note MT MT

Opening Balance as at 1 January 2014 379 163 017Funds received during the yearDFID - UK 221 645 234 1998686817Swiss Foreign Agency - 78541200KFW - Germany 579 150 000 5 178 893 947Ireland 259541 514 2117378014Finland 285 180 000 2 135 592 626GTZ - Germany - 13159046CIDA - Canada 172 209 182 4566225 156Netherlands - 2 672 329 707European Union - 467330049Spain - 409118731Denmark - 779017888World Bank 2657822147 7351 447954Portugal 10385000 81749650UNICEF 30575000 179415000Italy Cooperation 41 760000 158052900Flamenga cooperation - 123096000Interest received - 128831

Total of funds received during the year 5.4 4 258 268 077 28 310 163 516

Total funds 4 637 431 094 28 310 163 516

Payments through MINEDIMF

MINED Central I 873590578 17 843 362 027Maputo City 181 423260 606079599Maputo Province 174919037 607701 290Gaza Province 169 479 834 754 136 774Inhambane Province 169805211 833793987Sofala Province 208122836 865015657Manica Province 195 062 790 777 294 174Zamb6zia Province 338492939 1521417682Tete Province 233 400 327 965 316 666Nampula Province 263659482 1 740529932Niassa Province 155 180897 824996086Cabo Delgado Province 199 525 707 805 806 124

Total of payments through MINED/MF 4 162 662 898 28 145 449 998Foreign exchange loss and bank charges (33 561 784) (343 616 462)

Total of payments 4 129 101 114 27 801 833 536

Balance as at 31 December 2014 5.5 508329980 508 329 980

7

Ministry of EducatonEducation Sector Support Fund - FASE


5.2 Statement of receipts and payments(Values expressed in Meticais)

Funds transferred from CUT and expenses incurred at Central and Provinces levelincluding districts

1 January to Accumulated31 December September 03 to

2014 31 December 2014Note MT MT

Balance as at I January 2014 372299439 -

Receipts

Funds received from MF 5.6 4 162 662 898 28 145 449 998

Payments

MINED Central 1901489016 17 760 844 857Maputo City 182 336 539 604 756 350Maputo Province 139 730 933 558 693 389Gaza Province 159 404 326 729 870 422Inhambane Province 169854 159 824450837Sofala Province 186 878 738 829 328 669Manica Province 189859478 770665451Zamb6zia Province 350 496 297 1 484 308 062Tete Province 225630414 939673299Nampula Province 261 922260 1 652 186577Niassa Province 153636650 817761 983Cabo Delgado Province 210 579 258 769 765 833

Total Payments 4131818068 27 742 305 729

Balance as at 31 December 2014 5.6 403 144 269 403 144 269

8



Notes to the Statement of receipts and paymentsfor the year ended 31 December 2014

5.3 Accounting PoliciesThe statement of receipts and payments has been prepared in accordance with the followingbasis of accounting, applied consistently with that of the previous years:

5.3.1 Basis of preparation

The Statement of receipts and payments is prepared on the cash basis of accounting. Under thecash basis of accounting, receipts and payments are only recorded when the respective amountsare either received in the bank account of the program or when amounts are paid during theyear.

5.3.2 Accounting convention

The Statement of receipts and payments are prepared under the historical cost convention.

5.3.3 Statement of compliance

The Statement of receipts and payments has been prepared in accordance with the requirementsof the Memorandum of Understanding signed between the Government of Mozambique and theFunding signatories.

5.3.4 Currencies

The Statement of receipts and payments are presented in Meticais (MT), unless indicatedotherwise.

The accounting records as well as the Statement of receipts and payments are maintained inMeticais. Receipts and payments in other currencies are converted into Meticais at theprevailing official exchange rate on the date of the transaction and the year end balances in othercurrencies are converted at the prevailing exchange rate published by the Banco deMogambique at the last day of the year. Exchange translation differences are recorded in theStatement of receipts and payments.

9

Ministry of EducadonEducation Sector Support Fund - FASE


Notes to the statement of receipts and payments (cont.)for the year ended 31 December 2014

5.3.5 Funds received during the year

These funds are transferred by the donors directly to the Forex Account, a US Dollar bank

account maintained with the Banco de Mogambique with authorised signatories from the

Ministry of Finance (MF). These amounts are registered in the books of the Program at the

exchange rate prevailing on the date of receipt of funds in the Banco de Mogambique.

5.3.6 Payments through MINEDIMF

Payments through MINED / MF are the amounts transferred from the Forex Account to the

Central Office of FASE in the Ministry of Education and provincial offices of FASE in the

Provincial Directorates of Education (DPECs) through e-SISTAFE, the Government's

integrated budget, treasury management and internal control system in accordance with the

budgeted amounts. When transfers are made through e-SISTAFE, the movement of funds and

balances are through the Conta Jnica do Tesouro (CUT) which is a central treasury account

holding the funds of the Government of Mogambique in which each institution of the

Government has a separate account.

5.3.7 Fixed Assets

Fixed assets are recorded as expenditure in the year of purchase.

5.3.8 Expenses and Advances

The expenses are recorded in the period of the payment on the presentation of the supporting

documents. The amounts paid as advance are recorded as receivables. When these advances are

reimbursed or justified with supporting documentation they are recorded as payments in theperiod of receipt of the supporting documents.

5.3.9 Balances with districts

The closing balances of District offices of Education, Youth and Technology (SDJET) include

amounts for which supporting documents have not yet been presented to the DPECs.

10



Notes to the Statement of receipts and payments (cont.)for the year ended 31 December2014(Values expressed in USD)

5.4 Funds received during the year

Italy Germany CIDA- ExchangeDate World BankCooperation Portugal KFW Ireland Finland DFID UNICEF Canada Total USD rate Meticais

20/01/14 - - - - - 9421209 - - 9421209 30.27 28518000028/01/14 19299995 - - - - - - - 19299995 30.25 58382484928/01/14 30349136 - - - - - - - - 30349136 30.25 91806136404/02/14 - - - - - - 3298692 - - 3298692 30.43 10037919814/02/14 - - - - - - - 500000 - 500000 30.61 1530500014/04/14 188684 - - - . . - - 188684 30.48 575108816/04/14 - - - 8501 196 - - - - 8 501 196 30.53 259 541 50230/04/14 13662170 - - - - - - - - 13662170 30.61 41819902415/05/14 23960256 - - - - - - - 23960256 30.55 73198582122/05/14 - 1357166 - - - - - - - 1357166 30.77 4176000004/07/14 - - - - - - - - 5633274 5633274 30.57 17220918608/07/14 - - 337614 - - - - - - 337614 30.76 1038500714/07/14 - - - - - - 500000 - 500000 30.54 1527000004/11/14 - - - 18652 174 - - - - - 18652174 31.05 57915000212/12/14 - - - - - - 3825427 - - 3825427 31.70 121266036

Total 87460241 1357166 337614 18652174 8501196 9421209 7124119 1000000 5633274 139 486 993 4258268077

11



Notes to the statement of receipts and payments (cont.)for the year ended 31 December 2014(Values expressed in Meticais)

5.5 Closing balance

Balance in Forex Account (USD) (5.5 (a)) USD 1 601 367Balance in CUT (USD) (5.5 (b)) USD 5022413Balance in CUT (ZAR) (5.5(c)) USD 6 190Balance in CUT ( EURO) (5.5(d)) USD 292 294

Total balance in USD 6 922 264

Average exchange rate of Banco de Mogambique at balance 31.59sheet dateBalance converted to MT MT 218674332Balance in CUT (MT) MT 289 655 648

Total balance in MT 508 329 980

Book balance in MT (5.5 (e)) MT 474 768 196

Exchange gain in MT MT (33 561 784)

5.5 (a) The balance in the Forex Account represents the receipts of funds from the donors andsubsequent transfers to the Central and Provincial offices of FASE and CUT.

5.5 (b) This balance represents transfers from the Forex Account.

5.5 (c) This balance represents transfers from the CUT - USD.

5.5 (d) This balance represents transfers from the CUT - USD.

5.5 (e) This balance is the actual closing balance calculated as follows: (opening balance +

funds received during the year - amount transfer to MINED Central and DPEC's).

Letter of Credit / Commitments

Letter of Credits / Commitments amounting to MT 47 791 016 were issued by Moza Banco tothe suppliers on behalf of FASE as at 31 December 2014. These Letter of Credits /Commitments are secured by the Ministry of Finance through a letter of guarantee.

12



Notes to the Statement of receipts and payments (cont.)for the year ended 31 December 2014(Values expressed in Meticais)

5.6 Receipts and payments of the year

Receipts and payments during the year are presented below:

Maputo Maputo CaboMEC Central City Province Gaza Inhambane Sofala Manica Zamb6zia Tete Nampula Niassa Delgado Total

Opening Balance

I January 2014 110415693 2236533 13819804 14190841 9392096 14442897 1425408 49112998 17873441 86606036 5689849 47093843 372299439

Recelis

Funds received from MF 1873590578 181423260 174919037 169 479 834 169 805 211 208 122 834 195062 790 338 492 939 233 400 327 263 659 482 155180897 199525707 4162662898

Payment

Salaries - 826321 2303998 800449 5038669 4055592 - 30977696 3338539 22102947 5359501 4893950 79697662Other personnel costs 40088817 1365106 5389091 7176929 15770176 4889119 8380602 11 123742 7701805 12891084 5446148 5988937 126211556Goods and services (note 5.7) 1 132827363 37781074 46971555 64898449 70601251 85188076 73727644 212103007 103732909 154455635 80940778 60926795 2124154536Fixed assets (note 5.8) 732184071 142364038 85066289 86528499 78444063 92745951 107751232 96291852 110857161 72472594 61890223 138769575 1805365549Exchange difference (3611235) - - - - - - - - - - (3611235)

Total 1901489016 182 336 539 139 730 933 159 404 326 169854159 186 878738 189859478 350496297 225630414 261922260 153636650 210579257 4131818068

Balance in:

Bank account 76747212 808 4282 - 911767 35486 - 13577 (2320) 349511 64455 2964 78127742

Balances with SDEJT - 748 294 24902360 12 193 756 720 765 11 533 763 6286 901 23091 872 24083 506 78 384 900 5 187 238 17460242 204 593 596

Balance ln CUT (MT) - 574152 24101266 12072593 7710616 24117746 341818 14004191 1562168 9608847 1982403 18577087 114652887

Advances 5 770 043 - - - - - - - - - 5770 043

Balance as at 31 December 2014 82517255 1323254 49007908 24266349 9343148 35 686 995 6628719 37109640 25643355 88343258 7234096 36040293 403144269

13


Statement of receipts and payments for the year ended 31 December 2014

Notes to the Statement of receipts and payments (cont.)For the year ended 31 December 2014(Values expressed in Meticais)

5.7 Payments for goods and services

The amounts recorded under the line of goods and services are expenses paid under the scope of the implementation of the program and are mainlyexpenses related to the purchase of office material, school text books, consultancy services, transport, repairs and maintenance and are shown asfollows.

Maputo M

aputo Cabo

MEC Central City Province Gaza Inhambane Sofala Manica Zamb6zia Tete Nampula Niassa Delgado Total

Goods 622502573 29501508 36294088 16989765 61451091 64688967 62847252 160517210 67830571 108888377 59295182 43522691 1334329274

Services 510324790 8279566 10677467 47908684 9150160 20499109 10880393 5 585797 35902338 45567258 21645596 17404 104 789825262

Total 1 132 827 363 37781 074 46 971 555 64 898 449 70 601251 85 188 076 73 727 645 212 103 007 103 732 909 154 455 635 80940 778 60926795 2 124 154 536

5.8 Payments for fixed assets (capital goods)

Maputo Maputo CaboMEC Central City Province Gaza Inhambane Sofala Manica Zambiza Tete Nampula Niassa Delgado Total

Construction 415650328 136138520 73533935 73221312 65486213 77251454 99343168 82858140 103787979 58168712 56320078 130472373 1372232212Equipments 316533743 6225518 9982654 13307187 12957850 15494497 8 408 064 13433712 7012182 14303882 5570145 8297202 431526636OtherEquipments - - 1549700 - - - - - 57000 - - 1606700

Total 732184071 142364038 85066289 86528499 78 444 063 92745951 107751232 96 291852 110857161 72472594 61890223 138769575 1805365549

14

KPMG Auditores a Consultores, SA Telefone: +258 (21) 355 200Edificio HOLLARD Telefax: +258 (21) 313 358Rua 1.233, NO 72 C Caixa Postal, 2451Maputo, Magambique

Email: mz-fminformation(kpmo.com

Web:www.kpmg.co.mz

6 Report on evaluation of program internal controls


To the management of the Education Sector Support Fund (FASE)

As an extension of our audit of the Statement of receipts and payments of the FASE for the yearended 31 December 2014, reported in section 4, we are required to assess that "there areadequate internal controls over the key transaction streams which have been operatingeffectively during the year" and report on deficiencies in the design or operation of internalcontrols that have come to our attention during our financial audit.

Management's responsibility for the program internal controls

Management of FASE is responsible for determining the program's control objectives and forthe design and implementation of internal controls, including key controls, to achieve thosecontrol objectives and for ensuring that such controls operate effectively.

Auditors' responsibility

There are no established frameworks for evaluating the effectiveness of internal controlsapplicable to a project of this nature. Accordingly, we applied our professional judgement indetermining the procedures selected and the extent of our procedures, as well as the matters tobe reported.

The extent of our procedures comprised enquiries and discussions with those responsible forfinancial and accounting matters and performing such tests of detail as we considered necessaryfor the purpose of our audit of the Statement of receipts and payments; and additional enquiriesand discussions where we considered it appropriate having regard to our knowledge of FASE.

However, our objective was not to provide an opinion on FASE internal controls. Accordingly,we do not express such an opinion.

Matters coming to our attention

These are dealt with in a separate management letter.

KPMG Auditoros a Consultores. SA, uma socledade an6nima do Rogistada em MogambIque sob a desinaggo do, KPMGresponsabilidado limitada, 6 membro do KPMG toternacional, oma Auditore Conaultra., SA

cooperativa Selga

KPMG Auditores a Cons.ltores, BA, A Mozambique limited liability Registered in Morambique, as KPMG Audkorescompany, Is a member of KPMG International, a Swiss cooperatve a Consullores, SA

KPMG Auditores e Consultores, SA Telefone: +258 (21) 355 200Edificio HOLLARD Telefax: +258 (21) 313 358Rua 1.233, NOi 72 C Caixa Postal, 2451Maputo, Mogambique

Email: mz-fminformation@kpmacom

Web:www.kpmg.co.mz

7 Report on evaluation of whether the program receipts andpayments are in compliance with the relevant programagreement terms and local laws and regulations


To the Management of the Education Sector Support Fund (FASE)

As an extension of our audit of the Statement of receipts and payments of the FASE for the yearended 31 December 2014, reported in Section 4, we are required to report on whether the programreceipts and payments are in compliance with the relevant agreement terms and local laws andregulations.

Management responsibility

Management is responsible for compliance with the relevant agreement terms and local laws andregulations applicable to the FASE. The responsibility for the prevention and detection of non-compliance rests with management.

Auditors' responsibility

There are no established frameworks for evaluating the effectiveness of compliance with therelevant program agreement terms and local laws and regulations applicable to a project of thisnature. Accordingly, we applied our professional judgement in determining the procedures selectedand the extent of our procedures.

The extent of our procedures comprised enquiries and discussions with those responsible forfinancial and accounting matters and inspecting correspondence with the relevant licensing orregulatory authorities as we considered necessary for the purpose of our audit on the Statement ofreceipts and payments; and additional enquiries and discussions where we considered it appropriatehaving regard to our knowledge of the project.

However, our objective was not to provide an opinion on overall compliance with programagreement terms and local laws and regulations. Accordingly, we do not express such an opinion.

Matters coming to our attention

Matters of non-compliance are dealt with in a separate management letter.

KPMG Auditores a Consultores, SA, uma sociedade an6nima do Registada em Morambique sob a designapAo do, KPMGresponBabiidada lmitada, 4 mombro da KPMG Intemacional, uma Audilorese Consultores, SAcooperativa Sulla

KPMG Auditores a Consultores, SA, a Mozambique limited liability Registered in Moambique, as KPMG Auditorescompany, is a member of KPMG Intemational. a Swiss cooperative 0 Consultores. SA

Restriction on Distribution or Use

The Statement of receipts and payments is prepared in accordance with the basis of accountingdescribed in note 5.3 to provide information to the donors in accordance with the Memorandum

of Understanding signed between donors and the Government of Mozambique, as referred to in

Section 1. As a result, the Statement of receipts and payments and our reports in Sections 4, 6and 7 may not suitable for another purpose. Our report is intended solely for the donors and may

not be suitable for another purpose and may not be distributed without our written consent. To

the fullest extent permitted by law, our liability is restricted to those who engaged us.

KPMG

23 June 2015

Maputo

statement of receipts and...

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