AU6iTi-IS4L'S OFFICEPAPUA NEW GUINEA

Phone: (+675) 3012200 Fax: (+675) 325 2872 Email: agopng@ago.gov.pg Website: www.ago.gov.pg

The SecretaryDepartment of TreasuryPO Box 710WAIGANINational Capital District

INDEPENDENT AUDIT OPINION

PNG RURAL COMMUNICATIONS PROJECT (IBRD/IDA CREDIT NO: 4791 -PNG) FOR THE FISCAL YEAR ENDED 31 DECEMBER 2014.

Scope of Audit

I have audited the Project Financial Statements of Receipts andPayments, and the accompanying notes for PNG Rural CommunicationsProject IBRD/IDA Credit No. 4791 - PNG, as at 31 December 2014. Thepreparation of the Project Financial Statement is the responsibility of theProject Implementation Unit (PIU). My responsibility is to express an opin onon these Financial Statements based on my audit.

I have conducted my audit in accordance with International Standardson Auditing as adopted by the Accounting Standards Board of PapuaNew Guinea and the requirements of the Public Finances (Management)Act, 1995. These standards require that I plan and perform the audit toobtain reasonable assurance whether the- Financial Statements are free ofmaterial misstatement. The audit procedures included examination, on atest basis, of evidence supporting the amounts and disclosures in theFinancial Statements. My audit also included assessing the accountingprinciples applied and significant accounting estimates made bymanagement, as well as evaluating the overall statements presentation. Ibelieve that my audit provides a reasonable basis for my opinion.

The policy of the Management of Project is to prepare the accompanyingstatements in accordance with International Accounting Standards asadopted by Accounting Standards Board of Papua New Guinea and therequirements of the PNG Rural Communications Project IBRD/IDA CreditNo. 4791 - PNG Loan Agreement dated 9th August, 2010.

Level 6 PO Box 423TNA Inveatment honi /J IS 7 APT WAIGANL NCD

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Unqualified Audit Opinion

In my opinion, the abovementioned Project's Financial Statement give atrue and fair view in all material respects, of the financial position of thePNG Rural Communications Project IBRD/IDA Credit No. 4791 - PNG, as at31 December, 2014 and the receipts, payments and investments ofmonies and the acquisition and disposal of assets are in accordance withthe Public Finances (Management) Act, 1995 (as amended).

In addition:

(a) With respect to disbursement by the World Bank, paid on the basisof Certified Statements of Expenditure, adequate supportingdocuments had been maintained to support the claims to theWorld Bank for reimbursements of expenditure incurred and theexpenditure concerned are eligible for financing under the PNGRural Communications Project IBRD/IDA Credit No. 4791 - PNG.

(b) The PNG Rural Communications Project's (IBRD/IDA) lmprestAccount gives a true and fair view of the receipts collected andpayments made during the year ended and the status of theImprest Account as at 31 December 2014.

(c) The PNG Rural Communications Project's (GoPNG) CounterpartAccount gives a true and fair view of the receipts collected andpayments made during the year ended and the status of theCounterpart Account as at 31 December 2014.

PHILIP NAUGAAUDITOR-GENERAL

February 14, 2016.

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