AUDITOR'S REPORT "NIISLEL-AUDIT" LLC

Transcription

1 A Public Disclosure Authorized "NIISLEL-AUDIT" LLC AUDITOR'S REPORT Strengthening Policy Analyses and Monitoring Capacity Project No.TF Financial statements as of April 30, 2017 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Ulaanbaatar 2017

2 "NIISLEL AUDIT" LLC 3.11 Certified audit, appraisal and accounting consultancy company Dale.... INDEPENDENT AUDITOR'S REPORT To: PIU Coordinator Ts.Vanchin Strengthening Policy Analyses and Monitoring Capacity Project Grant No: TF We have audited the Financial Management Reports comprising the balance sheet, project source and uses of funds by project activity, disbursement report and the designated account statement of Strengthening Policy Analyses and Monitoring Capacity Project Grant No: TFO for the period from March 31, 2015 to April 30, The management of Strengthening Policy Analyses and Monitoring Capacity Project is to prepare the Financial Management Reports on the cash receipts and payments basis in conformity with International Public Sector Accounting Standards (IPSAS). On this basis, cash receipts are recognized when received and cash expenditures are recognized when paid rather than when incurred. Our responsibility is to express an opinion thereon based on our audit. We conducted our audit in accordance with International Standards on Auditing issued by the International Auditing and Assurance Standards Board of the International Federation of Accountants. These standards require that we plan and perform the audit to obtain reasonable assurance about whether the interim financial reports are free of material misstatement. An audit includes examining on test basis, evidence supporting the amounts and disclosures in the interim financial reports. An audit also includes assessing the accounting principles used and significant estimates made by management as well as evaluating the overall statement presentation. We believe our audit provides a reasonable basis for our opinion. In our opinion, the Financial Management Reports have been prepared in accordance with International Public Sector Accounting Standard issued by the Public Sector Committee of the Federation of Accountants, presented fairly the cash receipts and payments of the project for the period from March 31, 2015 to April 30, 2017 and furthermore in all material respected, expenditure have applied to the purpose intended in the Grant Agreement, Grant No: TFOI "Niislel-Audit" LLC Ulaanbaatar city, Sukhbaafar district, Baga toiruu-44 Phone/Fax; , 701 U 7 Co,Ltd j info@nfislelaudit.mn CERTIFIF) ACCouPITINO G AUDIT&, Pf AS AL f

3 The Government of Mongolia The International Development Association Grant No.TF Strengthening Policy Analyses and Monitoring Capacity Project AUDITED BALANCE SHEET For the period from March 31, 2015 to April 30, 2017 /in USD/ Balance items Note At March 30,2015 At Apr 30,2017 ASSETS Cash and cash equivalent Cash at bank: Designated account 3.1 5, Total cash and cash equivalent 0.0 5, Advance payments Cumulative project expenditures Consultant Services , Training and Workshops , Bank charge 475,98 Total cumulative project expenditures , TOTAL ASSETS , FUNDS Trust Fund 225,596.84,-< Interest earning - 6, TOTAL FUNDS , MAPKETwHHr Prepared by: A rooc b 6 arketing D Project J.Sukh re i Financial ManagementSpecialist I Proe46odinalwr Li Niislel Audit LLC

4 "NIISLEL AUDIT" LLC 51 A Certified audit, appraisal and accounting consultancy company INDEPENDENT AUDITOR'S REPORT To: PIU Coordinator Ts.Vanchin Strengthening Policy Analyses and Monitoring Capacity Project Grant No: TF We have audited the accompanying statement Sources and Uses of Funds of Strengthening Policy Analyses and Monitoring Capacity Project submitted to the World Bank for the period from March 31, 2015 to April 30, 2017 in support of credit withdrawals under the Grant Agreement, Grant No: TFO We conducted our audit in accordance with generally accepted auditing standards that accordingly included examination, on a test basis, of evidence supporting the amounts and disclosures in the statement of Sources and User of Funds. An audit also includes assessing the accounting principles used and significant estimates made by management as well as evaluating the overall statement presentation. We believe our audit provides a reasonable basis for our opinion. In our opinion, the statement of Sources and Uses of Funds submitted together with the internal controls and procedures involved in their preparation can be relied upon to support the application for credit withdrawals. "Niislel-Audit" LLC Ulaanboatar city, Suhhbaator district, Baga toimu44 Phone/Fax: , info@niislelaudit.mn

5 The Government of Mongolia The International Development Association Grant No.TF Strengthening Policy Analyses and Monitoring Capacity Project AUDITED PROJECT SOURCES AND USES OF FUNDS For the period from March 31, 2015 to April 30, 2017 lin USD At March 31, At Dec 31, At Apr 30, SOURCES FUNDS Trust Fund 180, ,596,84 Interest earned 5, ,242,08 TOTAL FUNDS 186, , USES OF FUNDS Advance payment 10, Consultant Services 47, , Training and Workshops 87, , Bank charge TOTAL USES OF FUNDS 145, , Surplus of funds over uses _ 41, , Prepared by: J.Su igerel Financial Management Specialist gricultural Pre Coo rd inal ' 70O0P YAHGAArAP XOT Niisil Audit LLC CER DG

6 "NIISLEL AUDIT" LLC 1 -V Certified audit, appraisal and accounting consultancy company Date,,- INDEPENDENT AUDITOR'S REPORT To: PIU Coordinator Ts.Vanchin Strengthening Policy Analyses and Monitoring Capacity Project Grant No: TF We have audited the accompanying the Statement of Expenditures (SOEs) of Strengthening Policy Analyses and Monitoring Capacity Project submitted to the World Bank for the period from March 31, 2015 to April 30, 2017 in support of credit withdrawals under the Grant Agreement, Grant No: TF We conducted our audit in accordance with generally accepted auditing standards that accordingly iicluded examination, on a test basis, of evidence supporting the amounts and disclosures in the Statement of Expenditures. An audit also includes assessing the accounting principles used and significant estimates made by management as well as evaluating the overall statement presentation. We believe our audit provides a reasonable basis for our opinion. In our opinion, the Statement of Expenditures submitted together with the internal controls and procedures involved in their preparation can be relied upon to support the application for credit withdrawals. Ui "Niislel-Audit" LLC Uilanbaatar city, Sukhbaatar district Baga toiruu-44 Phone/Fax: , info@niislelauditmn

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8 "NIISLEL AUDIT" LLC 3.il. Certified audit, appraisal and accounting consultancy company U INDEPENDENT AUDITOR'S REPORT To: PIU Coordinator Ts.Vanchin Strengthening Policy Analyses and Monitoring Capacity Project Grant No: TF We have audited the accompanying the Designated Account Statement of Strengthening Policy Analyses and Monitoring Capacity Project submitted to the World Bank for the period from March 31, 2015 to April 30, 2017 in support of credit withdrawals under the Grant Agreement, Grant No: TF We conducted our audit in accordance with generally accepted auditing standards that accordingly included examination,, on a test basis, of evidence supporting the amounts and disclosures in the Designated Account Statement. An audit also includes assessing the accounting principles used and significant estimates made by management as well as evaluating the overall statement presentation. We believe our audit provides a reasonable basis for our opinion. In our opinion, the Designated Account Statement submitted together with the internal controls and procedures involved in their preparation can be relied upon to support the application for credit withdrawals..li "Niislel-Audit" LLC Li, aulanboatar city, Sukhbaotar district Saga toimuu-44 Phone/Fax: , info@nislelaudit.mn ou

9 The Government of Mongolia The International Development Association Grant No.TF Strengthening Policy Analyses and Monitoring Capacity Project AUDITED DESIGNATED ACCOUNT RECONCILIATION STATEMENT for the period ended April 30, 2017 lin USD/ At Apr 30, Balance of special account per attached bank statement as of 2017/04/30 5, Plus: Amount claimed from the WB and yet credited at end of period 3. Plus: Amounts withdrawn and not yet claimed from the WB at end of period 4. Minus: - Interest earned 6, Corresponding bank charge (475.98) 5. Total advance accounted for 6. Difference between total appearing on lines 1 and 4 L Prepared by: - J.Sukhg re Financial Management Specialist Ns A v-estoc.cultural Marketingg Project r ng70111w.xg~ YPrf^ t 'Podi ator 1 L Niislcl Audit LLC F)S

10 [I Strengthening Policy Analyses and Monitoring Capacity Project GrantNgTF Financial statements for the period from March 31, 2015 to April 30, 2017 NOTES TO THE FINANCIAL MANAGMENT REPORTS 1. Project background The grant agreement X2TFO I 7308was made between the World Bank and the Government of Mongolia on March 31, 2015 for the implementation the Project for capacity building for policy analysis and monitoring. The total amount of the grants is US$ 277,000 from the World Bank's Institutional Development Fund (IDF)(two hundred seventy seven thousand)and the project commenced on March The closing date project was December 31, 2016, however, paper works related to the project closing is permitted till April 30, The overall responsibility for the implementation of the project in the Ministry of Food and Agriculture (MOFA) under the leadership of the Director General, Strategy, Policy, and Planning of the MOFA. The Project Implementation Unit (PIU) of the Livestock Agriculture Marketing project (LAMP)under the MOFA was responsible for the day to day administrations of the project including monitoring financial management procurement. The objective of the project is to support in-house capacity and skills of the MOFA to undertake policy analysis and to monitor its implementation. The project consists of the following parts: Part 1. Institutional Capacity Strengthening 1.1. Carrying out of a training and institutional needs assessment to determine the gaps in knowledge and skills and to determine appropriate organizational structure required to institutionalize the policy analysis process Development of a capacity development plan including the institutional framework to conduct policy analysis and monitoring within the MOFA Development of training modules on areas of subsidy programs for primary agriculture and food chain industries and their impacts, public expenditure reviews, public expenditure tracking surveys, and other areas identified during stakeholder assessment Development of a strategy for monitoring government policies Conducting policy analysis through orientation training program for each training module developed pursuant to sub-paragraph 1.3. Part 2 Knowledge exchange disseminationfianework 2.1. Designing a framework for the dissemination of policy and monitoring reports to government officials, parliamentarians, herders and other relevant stakeholders. LN Niisiel-Audit LLC

11 Strengthening Policy Analyses and Monitoring Capacity Project GrantN2TF Financial statements for the period from March 31, 2015 to April 30, Development of a comprehensive policy communication strategy to guide the MOFA on future dissemination of government policies, report of analysis and impacts of the policies as well as other reports emanating out of monitoring of specific government policies Piloting of communication strategy developed pursuant to sub-paragraph 2.2. by dissemination of all reports emanating from the policy analysis carried out under Institutional Capacity Strengthening above, using the communication strategy as a guide. Performance Indicators 1. Twenty MOFA staff trained in policy analysis under sub-paragraph Database established and at least one report is produced each year, under sub-paragraph Training manuals and reports of studies prepared under sub-paragraph Capacity development plan completed under sub-paragraph At least five workshops for information dissemination have been carried out under subparagraph 2.3. Allocation and disbursement The allocation and disbursement of grant are as follows as of April 30, 2017: /in USD/ Amount of the Grant Actual Category Allocated Disbursement (1) Consulting service 210, , (2) Training 66,200 97, Total 277, , L As of April , the World Bank disbursed USD225, (81.44%) and cancelled the remaining of USD51, (18.56%). In accordance with the project plan, trainings and seminars on policy development of Ministry of Food and Agriculture and light industry, monitoring its implementation, and improvement in-house capacity and skills were conducted by the technical service. 2. Summary of significant accounting policies a) Statement of compliance The Financial Statements comprise Balance Sheet, Statement of Source and Uses of Funds, Statement of Expenditures by Project Component and Statement of Designated Account. Niislel-Audit LLC

12 Strengthening Policy Analyses and Monitoring Capacity Project GrantNTF Financial statements for the period from March 31, 2015 to April 30, 2017 b) Basis of preparation The financial statements are prepared in accordance with International Public Sector Accounting Standards (IPSASs) issued by the International Public Sector Accounting Standards Board (IPSASB) of the International Federation of Accountants and cash receipts and disbursement basis of accounting has been applied. On this basis, receipts are recognized when received or direct payment to creditors are made rather than when income is earned and disbursements are recognized when paid rather than when expenses are incurred. The project financial activities carried out in compliance with the financial management arrangements approved by the World Bank. c) Basis of measurement The financial statements are presented in U.S.Dollar (USD). d) Basis of presentation The accounts balances in the financial statements have been presented on April 30, e) Designated account In accordance with the Disbursement letter dated November 28, 2015, the project opened the designated account which is one segregated account for the grant financing at the State Bank. The designated account is USD account acceptable to the World Bank. The ceiling of the designated account is US$120, Financial statement items 3.1 Cash and cash equivalents The PIU opened the Designated account for the carrying out of project activities. As of April 30, 2017 the cash and cash equivalents are as follows: Category Cash and cash equivalents USD Cash at bank: Designated account 5, Total 5, Niislel-Audit LLC

13 Strengthening Policy Analyses and Monitoring Capacity Project GrantN2TF Financial statements for the period from March 31, 2015 to April 30, Consultant Services As of April , US$35, disbursed for national consultants amounting US$92, for international consultants amounting a total expenditure for all consulting services US$127, The 3.3 Trainings and workshop The total expenditure of training and workshop has been US$97, in the reporting period. training and workshop has exceeded US$E31, The Ministry of Finance requested the World bank for amendments to the approved expenditure categories of IDF project, however, the World bank has not made any amendments due to the short remainder of the Project. The expenditure shown in the table below: N2 Category USD I Abroad study tours 46, Capacity building activities for Policy analysis of MOFA 30, Legal forums for agricultural sector 20, Total 97, Procurement contract During the project lifetime, 6 contracts were made for the consulting services: one was engaged based on consultant's qualification and five were hired based on the selection methods of individual consultants in compliance with the Guidelines on the selection of consultants under IBRD Loans and IDA credits and Grants by World Bank borrowers (January 2011). There was no delayed or cancelled contract and all consultants completed their tasks on time. 5. Post- report activities As of April 30, 2017 the designated account balance was US$5,766.10, however, the earned interest of US$ 51.08was added thereafter to the balance and totaled the balance to US$5,817.08at the closing of the project account on / /.The designated account of the project at the State bank has been closed with the official letter of the Ministry of Finance (ref X210/3644, dated June 1, 2017)and the balance of US$5, was transferred to the designated account of the LAMP at the State bank. L Niilel-Audit LLC H F.U...