JSDF GRANT FOR THE SUPPORT TO COMMUNITY SEED FUNDS PROJECT

Size: px

Start display at page:

Download "JSDF GRANT FOR THE SUPPORT TO COMMUNITY SEED FUNDS PROJECT"

Anissa Strickland
5 years ago
Views:

1 JSDF GRANT FOR THE SUPPORT TO COMMUNITY SEED FUNDS PROJECT JSDF GRANT NO. TF IMPLEMENTED BY AGRIBUSINESS COMPETITIVENESS CENTER SPECIAL PURPOSE FINANCIAL STATEMENTS AND INDEPENDENT AUDITOR'S REPORT Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized BISHKEK June 2016

2 JSDF GRANT FOR THE SUPPORT TO COMMUNITY SEED FUNDS PROJECT JSDF GRANT NO.TF TABLE OF CONTENTS STATEMENT OF MANAGEMENT'S RESPONSIBILITIES FOR THE PREPARATION AND PRESENTATION OF THE SPECIAL PURPOSE FINANCIAL STATEMENTS 3 INDEPENDENT AUDITOR'S REPORT 4-5 SPECIAL PURPOSE FINANCIAL STATEMENTS : Page Statement of cash receipts and payments 6 Statement of expenditures per components 7 Notes to the special purpose financial statements 8-12 ANNEX 1. RECONCILIATION BETWEEN THE AMOUNTS SUBMITTED BY THE ABCC AND DISBURSED BY THE WORLD BANK 13 2

STATEMENT OF MANAGEMENT'S RESPONSIBILITIES FOR THE PREPARATION AND PRESENTATION OF THE SPECIAL PURPOSE FINANCIAL STATEMENTS FOR THE PERIOD FROM 13 AUGUST 2014 TO 31 DECEMBER 2015 The management of

Project" (hereafter: the Project) financed by Letter Agreement JSDF Grant No.

3 STATEMENT OF MANAGEMENT'S RESPONSIBILITIES FOR THE PREPARATION AND PRESENTATION OF THE SPECIAL PURPOSE FINANCIAL STATEMENTS FOR THE PERIOD FROM 13 AUGUST 2014 TO 31 DECEMBER 2015 The management of the Agribusiness Competitiveness Center (hereinafter: ABCC) is responsible for the preparation of the special purpose financial statements of "JSDF Grant for the Support to Community Seed Funds Project" (hereafter: the Project) financed by Letter Agreement JSDF Grant No.TF dated 7 March 2014, that present fairly the Project's cash receipts and payments for the period from 13 August 2014 to 31 December _ in compliance with the International Public Sector Accounting Standard "Financial Reporting under the Cash Basis of Accounting" (IPSAS-Cash Basis) issued by the International Public Sector Accounting Standards Board (IPSASB) within the International Federation of Accountants (IF AC) and the Financial Management Manual for _World Bank Financed Investment Operations (WB Guidelines). In preparing the special purpose financial statements, ABCC's management is responsible for: Properly selecting and applying accounting policies; Presenting information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable information; Providing additional required disclosures for the period from 13 August 2014 to 31 December ABCC's Management is also responsible for: Designing, implementing and maintaining an effective and sound system of internal controls, throughout the Project; Maintaining adequate accounting records that are sufficient to show and explain the Project's transactions, and which enable them to ensure that the special purpose financial statements of the Project comply with IPSAS - Cash Basis and the WB Guidelines; Taking such steps that are reasonably available to them to safeguard the assets of the Project and to affirm that funds received have been used in accordance with the Letter Agreement JSDF Grant No.TF dated 7 March 2014, and World Bank related guidelines, with due attention to economy and efficiency, and only for the purposes for which the financing was provided; and Preventing and detecting fraud and other errors. The special purpose financial statements for the period from 13 August 2014 to 31 December 2015 were authorized for issue on 10 June 2016 by the ABCC's Management. On behalf of the ABCC's Management: Doromba Director 3

December 2015 To the management of the Agribusiness Competitiveness Center (hereinafter: ABCC) We have audited the accompanying special purpose financial statements of the "JSDF Grant for the Support

4 "U OU -Ufi~Ll.flS" U fll.c "SOS-AUDIT" LTD INDEPENDENT AUDITOR'S REPORT On the special purpose financial statements of the JSDF Grant for the Support to Community Seed Funds Project for the period from 13 August 2014 to 31 December 2015 To the management of the Agribusiness Competitiveness Center (hereinafter: ABCC) We have audited the accompanying special purpose financial statements of the "JSDF Grant for the Support to Community Seed Funds Project" (the Project) financed by Letter Agreement JSDF Grant No.TF and implemented by the ABCC, which comprise the statement of cash receipts and payments, the statement of expenditures per components, for the period from 13 August 2014 to 31 December 2015, and a summary of significant accounting policies and other explanatory notes. Management's Responsibility for the Special Purpose Financial Statements The management of the ABCC is responsible for the preparation and fair presentation of these special purpose financial statements in accordance with International Public Sector Accounting Standard: Financial Reporting Under the Cash Basis of Accounting, (IPSAS Cash Basis) issued by the International Public Sector Accounting Standards Board (IPSASB) within the International Federation of Accountants (IF AC), and Financial Management Manual for World Bank Financed Investment Operations, and for such internal control as management determines is necessary to enable the preparation of special purpose financial statements that are free from material misstatements, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express an opinion on these special purpose financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing (ISAs) as issued by International Auditing and Assurance Standards Board (IAASB) within the IFAC. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the special purpose financial statements are free from material misstatement. An audit involves performing procedures to obtain reasonable audit evidence about the amounts and disclosures in the special purpose financial statements. The procedures selected depend on the auditor's judgment including the assessment of the risk of material misstatement of the special purpose financial statements, whether due to fraud or error. In making those assessments, the auditor considers internal control relevant to the preparation and fair presentation of the special purpose financial statement 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 internal control.!2rmm ~nrnl.wp PtJqGbu UuwGutJ UungtJwglj_w6 UG11wli 'Fl; ~ brl.wg 0037, U.StJqrwGJwG 38/55; 'lbn.' (+37410) ; :bw~u (+37410) ; tl-ljlnulll info@sosaudit.am An Associate of the Crowe Horwath Business Alliance 38/55 A.Tigranyan, 0037 Yerevan, RA; Tel.: (+37410) ; Fax: (+37410) ; info@sosaudit.am

presentation of the special purpose financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

5 "U OU -Ufii'-Ll.:PS" U lll.c "SOS-AUDIT" LTD An audit also includes the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the special purpose financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Opinion In our opinion, 1. the special purpose financial statements present fairly in all material respects the cash receipts and payments for the period from 13 August 2014 to 31 December 2015 in accordance with IPSAS-Cash Basis; 2. funds have been used in accordance with the conditions of the Letter Agreement JSDF Grant No.TF dated 7 March 2014 between the International Development Association (IDA) and the Kyrgyz Republic, and World Bank related guidelines, with due attention to economy and efficiency, and only for the purposes for which the financing was provided; 3. supporting documents, records and accounts have been maintained to support claims for reimbursement of expenditures incurred. Expenditures included in the withdrawal applications and reimbursed against are eligible for financing under the Letter Agreement JSDF Grant No.TF014029; 4. The Designated account used has been maintained in accordance with the provision of the Letter Agreement JSDF Grant No.TF014029, and World Bank related guidelines. "SOS-Audit" LLC 10 June 2016 Gnel Khachatryan, FCCA Auditor!!rnm =lnr4.wp PtJqGbu UuwGur UungtJwg4.w6 UG11wu 11; p. t[1l.o.wg 0037, U.StJqf1WUJWU 38/55; =ibn.' (+37410) ; jjw_gu (+37410) ; tl-!tjnuul info@sosaudit.am An Associate of the Crowe Horwath Business Alliance 38/55 A.Tigranyan, 0037 Yerevan, RA; Tel.: (+37410) ; Fax: (+37410) ; info@sosaudit.am

TFOI4029 TOTAL FUNDS 8 Other income (interest accrued) 5,827 5,827 Project Expenditures (1) Goods, Non-Consulting Services, Consultants' Services, Training, and Operating Costs under the Project (a)

6 Statement of cash receipts and payments TOTAL OPENING CASH Note Reporting l!eriod - Actual Budget Variance Cumulative Reporting Cumulative Reporting C umulative as at 31 Dec 2015 _eeriod as at 31 Dec 2015 oeriod as at 31 Dec Sources of Funds JSDF Grant No.TFOI4029 TOTAL FUNDS 8 Other income (interest accrued) 5,827 5,827 Project Expenditures (1) Goods, Non-Consulting Services, Consultants' Services, Training, and Operating Costs under the Project (a) Goods (b) Non-Consulting Services (c) Consultants' Services, Training (d) Operating Costs TOTAL PROJECT EXPENDITURES 7 561, , ,931 10, , ,328 1,023,536 I,023, , , , , , , , , , , , ,837 10,370 8,000 8,000 (2,370) (2, ,328 1,023,536 1,023, , ,208 Other expenditures (bank charges) Foreign exchange gain/(loss) 777 (2) 777 (2) TOTAL CLOSING CASH 241,344 Dorombaev AI Director ~ Januzakova Aigul Financial Manager 10 June ,.

Statement of expenditures per components Project Activities Part A. Support for Expansion of Community Seed Fund System A. 1. Capacity Development for Expansion ofthe CSF System A.2.

Monitoring and Evaluation, and Knowledge Dissemination 8.2.

7 Statement of expenditures per components Project Activities Part A. Support for Expansion of Community Seed Fund System A. 1. Capacity Development for Expansion ofthe CSF System A.2. Seed Capital For Community Seed Funds A.3. Training and Extension Services to Vulnerable Farmers Part B. Project Management, Monitoring and Evaluation, and Knowledge Dissemination 8.1. Monitoring and Evaluation, and Knowledge Dissemination 8.2. Project Management and Administration Reporting period 488, , ,026 85,435 73,255 12,907 60,348 Actual Cumulative as at 31 Dec , , , , , ,768 85, ,700 73, ,568 12,907 20,000 60,348 84,568 Planned Variance Reporting Cumulative Reporting Cumulative period as at 31 Dec 2015 period as at 31 Dec , , , ,500 66,888 66, , , , , , , ,568 31,313 31,313 20,000 7,093 7,093 84,568 24,220 24,220 TOTAL 561,328 1,023,536 1,023, , ,208 Director 10 June 2016 ~ Januzakova Aigul Financial Manager 7

8 Notes to the special purpose financial statements 1. General information 1.1. The Project ln accordance with Letter Agreement dated 7 March 2014, the International Development Association ("IDA", or "WB"), acting as administrator of grant funds provided by the Japan, under the Japan Social Development Fund (JSDF), provided Kyrgyz Republic a grant in the amount of 2,800,000 United States dollars (). The JSDF Grant No.TF was provided for implementation of "JSDF Grant for the Support to Community Seed Funds Project" (the Project). The Grant became effective on 13 August The Closing date of the Grant expenditures is set 7 March The Grace Period for submitting withdrawal application for expenditures incurred before the Closing date is four months following the Closing dates The Project objectives The objective of this project is to increase the agricultural productivity of the beneficiaries 111 Project areas through providing support for expansion of the Community Seed Fund system. the The Project consists of the following parts: Part A. Support for Expansion of Community Seed Fund System (1) Developing the capacity for expansion of the Community Seed Fund (CSF) and Self-Help Groups (SHG) system through training of non-governmental organizations such as CSF and SHG mobilizers and trainers, and mobilizing new CSFs and SHGs based on relevant eligibility criteria; (2) Supporting CSFs and SHGs through provision of goods; (3) Providing training and extension services to small and vulnerable farmers on sustainable agricultural practices. Part B: Project Management, Monitoring and Evaluation, and Knowledge Dissemination (1) Monitoring of the Project's progress and results; and (2) Carrying out project management and administration activities The Project Budget and Financing The Project is 100% financed by JSDF Grant No.TF014029, inclusive of taxes. JSDF Grant Category No.TF Total (I) Goods, Non-Consulting Services, Consultants' Services, Training and Operating Costs under the Project 2,800,000 2,800,000 Total 2,800,000 2,800, Project Implementation The Project is implemented by Agribusiness Competitiveness Center (ABCC). ABCC was established on 2004, November 29 by Government Resolution # 873 of the Kyrgyz Republic. The ABCC address is: 114 Chui avenue, Bishkek , the Kyrgyz Republic. 8

9 Notes to the special purpose financial statements 2. Summary of significant accounting policies 2.1. Preparation and presentation of financial statements The special purpose financial statements are prepared in accordance with the International Public Sector Accounting Standard: Financial Reporting Under the Cash Basis of Accounting (IPSAS-Cash Basis), issued by the International Public Sector Accounting Standards Board (IPSASB) within the International Federation of Accountants (IF AC), and presented in accordance with Financial Management Manual for World Bank Financed Investment Operations (March 2010): RM 3- Financial Reporting and Auditing. The principal accounting policies applied in the preparation of these special purpose financial statements are set out below. 2.2 Cash basis of accounting Project financing is recognised as a source of project funds when the cash is received. Project expenditures are recognised as a use of project funds when the payments are made. 2.3 Reporting currency The reporting currency of these special purpose financial statements is United States dollars (). The expenditures made in local currency, Kyrgyz Som (KGS), are translated into based at the exchange rate prevailing at the date of the transaction at the Demir Kyrgyz International Bank (DKIB). The exchange rate defined by the DKIB is as follows: 31 December 2015: 1 = KGS Taxes The taxes are paid in accordance with the tax regulation of the Kyrgyz Republic. 9

10 Notes to the special purpose financial statements 3. Summary of Summary Reports and SOEs Payment categories Withdrawal Withdrawal application application (I) Goods, Non-Consulting No value date Services, Consultants' Services, Training and Operating Costs under the Project Refund* Total 230, , (230,707.47) 266, , Total 230, , (230,707.47) 266, , (*)The SOE 2 and SOE 3 were double documented by the WB, and corrected through documenting Refund by the same amount. 4. Statement of Designated Account Bank account number Bank Bank location Currency DEMIR KYRGYZ INTERNATIONAL BANK Chuy 245, Bishkek, Kyrgyz Republic I. Opening balance as at Add: opening discrepancy 3. WB advance/replenishment* 4. Less: Refund to WB from DA ** Grant No. TF I,028,291 (230,697) 5. Present outstanding amount advanced to DA 797, DA closing balance as at Add: Amount of eligible expenditures paid 8. Less: interest earned (if credited to DA) 9. Total advance accounted for I 0. Closing discrepancy (5)-(9) 236, , ,594 (*)The replenishment into the Designated account is net of bank charges at corresponding bank in the total amount of 30 for the reporting period. (**) The SOE 2 and SOE 3 were double documented and reimbursed by the WB, and corrected through refunding the double transferred amount. 10

11 Notes to the special purpose financial statements 5. Statement of Financial Position The Statement of Financial Position discloses assets, liabilities and net assets of the Projects as at reporting date. It is prepared in accrual basis that is transactions are recognized when they occur (and not only when cash is received or paid). ASSETS Cash Prepayments Total assets LIABILITIES Payables Total liabilities NET ASSETS Cumulative income JSDF Grant No.TF Other income (accrued interest) Cumulative expenses Project expenses Other expenditures Total net assets 6. Cash JSDF Grant No.TF Designated Account Other Interest account Interest account Note Underlying Currency KGS As at 31 Dec , ,344 5, , , ,105 (2) 241,344 As at 31 Dec , ,296 5, , ,344 (*)All accounts are held at Demir Kyrgyz International Bank (Bishkek, Kyrgyz Republic). II

12 Notes to the special purpose financial statements 7. Project Expenditures Budget Execution Category ( I) Goods, Non-Consulting Services, Consultants' Services, Training and Operating Costs under the Project Total Cumulative Expenditures asat31 Dec2015 Total budget Execution o;u 561,328 2,800,000 20% 561,328 2,800,000 20% 8. Financing JSDF Grant No.TF Advances/ (advance recovery) Direct Payments SOE and Summary Report Total Reporting period 300, ,624 Cumulative as at 31 Dec , ,624 Total financing budget Percentage of finance provided as at 31 Dec ,800,000 28% 9. Event after reporting date The application N5 with total amount of 125, that includes expenditures relating to the reporting period in the amount of 63, was submitted to WB on 14 March 2016 and approved on 17 March

Difference Advances I 300,000.00 300,000.00 300,000.00 300,000.00 ( 1) Goods, Non-Consulting Services, Consultants' 2* 230,707.47" 230,707.

13 ANNEX I. RECONCILIATION BETWEEN THE AMOUNTS SUBMITTED BY THE ABCC AND DISBURSED BY THE WORLD BANK Expenditure Category Application No ABCC WB Difference Advances I 300, , , , ( 1) Goods, Non-Consulting Services, Consultants' 2* 230,707.47" 230, Services, Training and Operating Costs under the 3* 230, Project Refund* (230,707.47) 4 266, , , , Total 797, , (*)The SOE 2 and SOE 3 were double documented and reimbursed by the WB, and corrected through Refund. 13

I I I I I I I I JSDF GRANT FOR THE SUPPORT TO COMMUNITY SEED FUNDS PROJECT - JSDF GRANT NO.TF TABLE OF CONTENTS. Page

I I I I I I I I JSDF GRANT FOR THE SUPPORT TO COMMUNITY SEED FUNDS PROJECT - JSDF GRANT NO.TF TABLE OF CONTENTS. Page Public Disclosure Authorized JSDF GRANT FOR THE SUPPORT TO COMMUNTY SEED FUNDS PROJECT - JSDF GRANT NO.TF014029 TABLE OF CONTENTS Page Public Disclosure Authorized STATEMENT OF MANAGEMENT'S RESPONSBLTES