"NIISLEL AUDIT" LLC INDEPENDENT AUDITOR'S REPORT

Transcription

1 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized "NIISLEL AUDIT" LLC Certified audit, appraisal and accounting consultancy company Dale: INDEPENDENT AUDITOR'S REPORT To: The Management of National Statistical office of Mongolia's Capacity Enhancement Project Grant No: TF0A0396 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 National Statistical office of Mongolia's Capacity Enhancement Project Grant No: TF0A0396 for the period from February 19, 2016 to February 28, The management of National Statistical office of Mongolia's Capacity Enhancement 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 February 19, 2016 to February 28, 2018 and furthermore in all material respected, expenditure-have-applied.to the purpose intended in the Grant Agreement, Grant No: TF0A0396. "Niislel-Audit" LLC Ulaanbaatar city, Sukhbaafar district, Bags toiruu-44 Phone/Fax , info nfislelaudit mn

2 The Government of Mongolia The International Development Association Grant No.TF0A0396 National statistical office of Mongolia's Capacity enhancement Project BALANCE SHEET For the period from Feb 19, 2016 to February 28, _ /USD/ Balance items Note At Feb19, 2016 At Feb28, 2018 ASSETS Cash and cash equivalent Cash at bank: Designated account 3a - 11, Total cash and cash equivalent , Advance payments Cumulative project expenditures Goods 3b 130, Consultant's services 3c 95, Training and Workshops 3d 239, Incremental operating costs 3e - 9, Total cumulative project expenditures , Bank charge TOTAL ASSETS , FUNDS IDA Fund - 480, Net Interest earning 4-6, TOTAL FUNDS , Prepared by: Approved by: B.Davaajav -/- Financial Management Specialist S.Enkhtserseg Project Coordinator Niislel audit LLC

3 "NIISLEL AUDIT" LLC Certified audit, appraisal and accounting consultancy company Date:74Y4.. i INDEPENDENT AUDITOR'S REPORT To: The Management of National Statistical office of Mongolia's Capacity Enhancement Project Grant No: TF0A0396 We have audited the accompanying statement Sources and Uses of Funds National Statistical office of Mongolia's Capacity Enhancement Project submitted to the World Bank for the period from February 19, 2016 to February 28, 2018 in support of credit withdrawals under the Grant Agreement, Grant No: TF0A0396. 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 Uleanbeatar city, Sukhbaalar district, Baga toiruu-44 Phone/Fax: , info@niislelaudit.mn 3

4 The Government of Mongolia The International Development Association Grant No.TF0A0396 National statistical office of Mongolia's Capacity enhancement Project PROJECT SOURCES AND USES OF FUNDS BY CATEGORY For the period from Feb 19, 2016 to February 28, 2018 /USD/ SOURCES At Febl9,2016 At Dec 31,2016 At Feb 28,2018 FUNDS IDA Fund - 200, , Net interest earned - 3, , T O T A L F U N D S -2 03, , USES OF FUNDS BY CATEGORY Goods - 23, , Consultant's services - 35, , Training and Workshops - 37, , Incremental operating costs , TOTAL USES OF FUNDS - 96, , Bank charge Surplus of funds over uses - 106, , Prepared by: Approved by: B.Davaajav I S.Enkhtsetseg Financial Management Specialist Project Coordinator Nilstel audit LLC Z/)

5 i О С С С м Q О Q I Q О D NO I р р О ft 'о N й м 0 I С D 'гs г i Q и ; о ^ оо сч оо cv. t ц л ал.r м аt а, ^ `'' `д n У 'fl aai о I р, О L = U,..,!. Ш у й cs О Q и ' о г с,--', С`. р у Gp и и i вв ' '" ' 'в.+ О О О О 1. Л f) Ь" С G а, оо ' о гv д ^ о cs Е'' I.ti с ч w.с 5' Ci. м оо N м.,.., ' о о, м r t `fl 'ы G F cs сл е гi оо ` о й U i n гч r,. R, I [ Q^ Do 4 рд v С ы ' с М и Й с,.. С F+ iт. м оа а и а I N Q р I о (j О д и и и :n _ н. N I. ст ' С7 Q А о у ` I л о м о n о, L Z q. д V и сч й О I Io0 I ( С р О и Q; n G " у г,.. I ' 0 р N С IOC.С i. V N.--, 1О, F" 0 С I I Cj i.. м О о II I I и "' а (,-. ] М м i F v [/1 3 '_' + у, Q. i О О Q р 0 О О О О Й, р, О О С I р и г О о N '^ о о. ао р v о I " i й а 'ы+ z i V С Sь л E l., О. с, ' '3 уи Q с i U ;«- I о а о cs о t и С +,, т У, - ' у U I р б L С 'U ia L, у N U с4 '.+ r.. у а, I = 0 ', у ' r б ''_',с3 С1 : Су ^, CU! Сс ' ь а 'о I, о wu а, я`. й :. ' о +, n1 а м д гi erc ''' L.. +:r '.'' J ' з,` С Сб U ' R ` ' а. ёп. а й с -v а F - ; дй И Z

6 "NIISLEL AUDIT" LLC Certified audit, appraisal and accounting consultancy company Date:, 010/y INDEPENDENT AUDITOR'S REPORT To: The Management of National Statistical office of Mongolia's Capacity Enhancement Project Grant No: TFOA0396 We have audited the accompanying the Statement of Expenditures (SOEs) of National Statistical office of Mongolia's Capacity Enhancement Project submitted to the World Bank for the period from February 19, 2016 to February 28, 2018 in support of credit withdrawals under the Grant Agreement, Grant No: TFOA0396. 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 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. *11-slel aay /4/_ "Niislel -Audit" LLC Ulaanbaafar city. Sukhbaatar district, Bogs toiruu-44 PhonelFax , info@niislefeudit.mn

7 The Government of Mongolia The International Development Association Grant No.TF0A0396 National statistical office of Mongolia's Capacity enhancement Project STATEMENT OF EXPENDITURES (IDA Withdrawals) For the period from Feb 19, 2016 to February 28, 2018 WA Application Credited Amount Amount numbers type Claimed date date claimed in credited in Difference USD USD WA-1 Advance 20-June June , , WA-2 Replenishment 7-Feb Apr , , WA-3 Replenishment 19-July Aug , , WA-4 Replenishment 22-Nov Dec , , *14, Total 294, , , *Difference was formed due to additional demand of US $ 14, by WA-4. Prepared by: Approved by B.Davaajav *7 Financial Management Specialist S.Enkhtsetseg Project Coordinator Niislel audil LLC LJ7

8 I, и N й I F в r iti и у 1 р ' * '' р р а.+. С г.. I С О гл N О О 'С. О [ Q iv b' др. С О д ' с' мt, j аи 1 С д ь. и о г`' а й О и ' tqц -1 N й О S U I О N I С1 G1. О О М О и О I г1 р Q; м р О Т N О n 0, F О д ' 1^ 01 I og., О 1 N C i N.. ь t :о. о I гл р со i.. ' и Ф n О + L" I С Й м v7 I U} I D Т ' i $. р '" ] ' Г1 fj 1 С N I F I м л о, о es г00ц ^о ;:, и с_s С. ' 4 Ci С7, R, М ^. И И ' V 00 v1 [ И "' д с+ С' I ь = + И о й. D 3 fл Lг. о м + w- р V м г- о д о р 0 и " р и I й а,, + CJ ". 0 N о гл м р Z С G А z а V йм r йv оро' i ё н cv - о I s,. о о i' с. с о,, С7 ' {,7 о о о I С.1 С F yi.,. I о г е о ' CGJ Z р 1 Q F.. W о д о. е У о ', ` ` ьч а Е- и н Е" G N гру N N и р L С. a i 'G i з v I ` а о cv сч м о 1 1 и л с,0 д r. с, а а а р С о р v a i z.v ; р гч с _ п е+ а cv л а а. c -3-, 'а i - z cs ё U N t N а I г. F I и с 'б..., С,с agi a i а [s " й С. е й й й С. 1 С R.C i W N, и в ^ а. а. п 3, 1,а i 'а ' L С г.г f Q е N t i у = 'з д Q' д д у`''".,,и I г о, {j 'z 1, т

9 "NIISLEL AUDIT" LLC Certified audit, appraisal and accounting consultancy company Date: 06?A-.4 INDEPENDENT AUDITOR'S REPORT To: The Management of National Statistical office of Mongolia's Capacity Enhancement Project Grant No: TFOA0396 We have audited the accompanying the Designated Account Reconciliation Statement of National Statistical office of Mongolia's Capacity Enhancement Project submitted to the World Bank for the period from February 19, 2016 to February 28, 2018 in support of credit withdrawals under the Grant Agreement, Grant No: TFOA0396. We conducted out 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 Reconciliation 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 Reconciliation Statement submitted together with the internal controls and procedures involved in their preparation can be relied upon to support the application for credit withdrawals. A ;s/e/ O&W,, /6 "Niislel-Audit" LLC Ulaanbaatar city, Sukhbaatar district, Baga toiruu-44 Phonelpax: , , infb@nfis1e1aud1t.rnn LJ

10 The Government of Mongolia The International Development Association Grant No.TF0A0396 National statistical office of Mongolia's Capacity enhancement Project DESIGNATED ACCOUNT RECONCILIATION STATEMENT for the period ended February 28, USD/ At Feb 28, Total advanced by IDA 185, Less: Total amount recovered by IDA - 3. Equal present outstanding amount advanced to the special account 185, Balance of special account per attached bank statement as of 2018/02/28 11, Plus: Amount claimed from the WB and yet credited at end of period (WA-4) - 6. Plus: Amounts withdrawn and not yet claimed from the WB at end of period (WA-5) 180, Minus: - Net Interest earned 6, Corresponding bank charge (40.00) 7. Total advance accounted for 185, Difference between total appearing on lines 3 and 7 - Prepared by: Approved by: B.Davaajav -/' Financial Management Specialist S.Enkhtsetseg Project Coordinator Nilslel audit LLC

11 National Statistical office of Mongolia's Capacity Enhancement Project Financial statements for the period from February 19, 2016 to February 28, 2018 GrantN2TF0A0396 NOTES TO THE FINANCIAL MANAGEMENT REPORTS Covering period: Feb 19, 2016-Feb 28, Project background The grant agreement was made between the International Development Association (IDA) and the Government of Mongolia (represented by the Ministry of Economic Development) on dated February 19, 2016 for the implementation of the NSO Capacity Enhancement Project with a total amount of USD 480, (Four hundred and eighty thousand). The project became effective on 19 February 2016 and the closing date was 31 January 2018 with the application deadline is at 31 May The project aims to enhancing capacities of NSO and other procedures of official statistics for measuring progress of the post 2015 development agenda and impacts of the Government's policies and programs by providing high quality and high priority data at both local and national levels and by ensuring data access and usage and develop institutions for providing user-oriented service and enabling open data. The project consists of the following parts: Part 1. Further improvement of economic statistical domains: improve constant prices at the macro level; construct environmental-economic accounts (energy account); and estimate impacts of mining on economy; Part 2. Measure economic growth and its impacts on household livelihood: develop relevant methodologies for measuring impacts of economic growth on household livelihood, poverty employment; and inequality at aimag and soun levels; conduct capacity building training for enhancing skills and knowledge of staff at NSO and local levels; Part 3. Enhance local statistical capacities: implement data quality policies at aimag and soum levels to ensure high quality local data sets in areas important for the Government; enhance anal) tical skills of local statistical officers as well as government officers in charge of local development policies and programs; Part 4. Institutional development to ensure user-oriented service and enable open data: improve metadata and develop policies on open data and non-traditional data used for statistical purposes; organize training and workshop to enhance skills of staff to use metadata and expand open data. Part 5. Project Management: NSO will be the main executing agency of the project and will be responsible for its overall management and implementation. To effectively carry out the implementation and Niislel audit LLC

12 National Statistical office of Mongolia's Capacity Enhancement Project Financial statements for the period from February 19, 2016 to February 28, 2018 GrantX2TFOAO396 daily project administrative work, there will be a coordinator/procurement specialist and a financial management specialist to be hired by Executing Agency. IDA Grant allocation and disbursement is shown below as of February 28, 2018: IDA Grant Percentage of Actual Category Allocated Expenditures disbursement Difference Difference Amount to be financed (USD) (USD) (%) (USD) _(tax inclusive) (1) Goods, Consulting 415,000 Services, Training I 100% 465, (50,586.23) *(12,19%) and Workshops fi (2) Incremental 65, % 9, , Operating Cost 85,09% Total 480, , ,02 The Project Implementing Unit is the National Statistical Office (NSO) of Mongolia as it's specified in the Grant Agreement, and it was responsible to carry out the implementation and daily project administrative work of the Project. The project is headed by Project Director (Chair, National Statistics Office of Mongolia) and Project coordinator worked under the guidance of the Project Director. As at 29 February 2018, the withdrawal rate of the Grant wasloo% and actual disbursement was 99.02%. 2. Summary of significant accounting policies a) Statement of compliance The Financial Statements comprise Balance Sheet, Uses of Funds by Category, Uses of Funds by Project Activity, Disbursement report and Statement of Designated Account Statement. b) Basis of preparation The financial statements were 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. The financial statements have been prepared on a cash basis. On this basis, cash receipts are recognized when received and disbursements are recognized when paid rather than when expenses are incurred. The project financial activities carried out in compliance with the project disbursement handbook which approved by the World Bank. Niislel audit LLC 17t

13 National Statistical office of Mongolia's Capacity Enhancement Project Financial statements for the period from February 19, 2016 to February 28, 2018 GrantN2TFOAO396 c) Basis of measurement The financial statements are presented in U.S.Dollar (USD). The payments made by Mongolian currency (tugrik) which were transferred into USD based on official exchange rate, as of the date of payment. d) Basis of presentation The reporting date is Feb 28, e) Designated account In accordance with the Disbursement letter, the project opened the designated account for the grant funds at the State Bank. The designated account is an USD account. Expenses such as Goods, Consultancy Services, Training and Workshops and Incremental costs funding are financed from the designated account. The ceiling of the designated account is US$200,000 in according to the Disbursement Letter issued by the Association on February 15, Financial statement items 3a. Cash and cash equivalents The Designated account is opened for disbursing the Project funds for approved project activities. Cash and cash equivalents as of Feb 28, 2018 is shown in the table below: (in USD) Cash and cash equivalents: Special Account 11, Total 11, Niistel audit LLC

14 National Statistical office of Mongolia's Capacity Enhancement Project Financial statements for the period from February 19, 2016 to February 28, 2018 GrantX2TF0A0396 3b.Goods The expenditures for Goods incurred in the reporting period were as follows:.n Cost items Amount (in USD) Computer and printing machines 2 for local statistical offices 2 Printing of books and statistical methodology guidelines 42, Printing machines to support data 24, dissemination (NSO) Equipment of Media center of 42, NSO Total 130, The selection and engagement of contractors for goods and services are carried out in accordance with the agreed procurement guidelines. Four goods contracts selected by using sampling method and reviewed. National Competitive Bidding selection method is used for three contracts and direct selection method is used for one contract. The Bid evaluation report and World Bank approval/ no objection (Guidelines: Procurement of Goods, Works, and Non-Consulting Services under IBRD Loans and IDA Credits & Grants-Article 2.59) were obtained during the Bid validity period. The notice for contract award was issued to the lowest evaluated bidders and contracts were awarded before the expiry of the Bid validity. Through those procurement of the Goods, * NSO print shop equipment is fully renewed, * Information center equipped with advanced technology is established, * "Mongolian Socio-Economic indicators calculated for 10 years" and "Teaching Methodology for General Education schools" was developed and published. 3c. Consulting Services During the reporting period, total of six consulting service contracts were awarded. Individual selection method was used for all these six contracts in compliance with the Guidelines: Selection and Employment of Consultants under IBRD Loans & IDA Credits & Grants by World Bank Borrowers dated January No delay and termination is observed for the consulting service contracts and all deliverables specified in the contracts were submitted on time. Total of US $95, is disbursed for consulting services. Outcome of those consulting service are the following: (i) Statistical data of economic sector is expanded through, (ii) Methodology of calculating the GDP is developed conforming to the international standards, (iii)methodology for calculating Household living standard growth and its impacts developed (iv) Methodological guidelines on creating a social accounting matrix was developed; Niislel audit LLC ~~0 LJ4

15 National Statistical office of Mongolia's Capacity Enhancement Project Financial statements for the period from February 19, 2016 to February 28, 2018 GrantN2TFOAO396 (v) Methodological guidebooks "Using Stata Software of Statistical Data Processing in Analysis", "Using Econometric and Statistical Data Processing Eviews Software in Analysis" were developed with the following delivery of series of training workshops on how to use them; (vi)a series of training workshops on instructional methodology of economic statistics and using them in analysis was delivered to statistics officers of central and local statistical offices. (vii) Analysis of existing methodology of measuring economic growth, recommendations for improving the methodology of measurement for household livelihood, poverty, unemployment and inequality were developed. (viii) An empirical survey studies was conducted in the center of Dundgovi aimag and Adaatsag soum, which has identified 56 indicators for data collection and a methodology for calculating the revenue at the regional level. (ix)national Consultant has identified a Strategy of National Statistical Office for 2018, and developed a detailed program for policy implementation and operation, as well as sector-wide analysis of internal and external collaboration with the following recommendations. Also, operational procedures of newly established "Information center" were developed. (x) Ez Stat application for the use of statistical institutions upgraded and improved. 3d. Training and Workshops The expenditures for Training and Workshops incurred in the reporting period were as follows: Ni Description Amount(in USD) I Oversea training and workshops 86, Training and Workshops for 14, Enhancing Capacit of NSO staff 3 National Forum on "Sustainable Development and Statistical" 73, Local training and Workshops, and trial research 63, Total 239, Statistical data quality is improved and analytical skills of the staff working at the statistical offices of the government at the aimag and soum levels is enhanced through the trainings and workshops conducted. 3e. Incremental Operating Costs The expenditures for IOC incurred in the reporting period were as follows: LN Nfislel audit LLC LJ3

16 National Statistical office of Mongolia's Capacity Enhancement Project Financial statements for the period from February 19, 2016 to February 28, 2018 Grant2TFOAO396 Ku Description Amount(in USD) I Publishing vacancy notices to Local newspapers 2 Translation of Project reports 3,002.5 I Publication and Printing 5, Office consumables 1, Total 9, Other sources For the reporting period, total accumulated interest gain is US $6, of the designated account. 5. Payments made after Post-Reporting After the auditing conducted for the Project, auditing payment of US $1,466.78for Auditing Service for Financial Statements of has been transferred to the Project's operating account and account of Niislel Audit LLC as per the three party agreement signed among Mongolian National Auditing Office, National Statistical Office of Mongolia, Mongolia NSO Capacity Enhancement Project on March 23, The following activities shall be done: Undisbursed amount of US $3, in the designated account located at the State Bank shall be transferred back to the World Bank and total accumulated interest gain of US $6, shall be transferred into the Treasury account of the Ministry of Finance. After transferring these amounts, the designated account shall be closed. Also, the project's preliminary financing is shown in the table below: Amount claimed in US dollars Amount Number Application Tm credited in ofwa type Advance Goods Consulting rraining 10. Hunt LS dollars Difference WA-5 Documentation 69, , , t V ,169,94-182,16994 The final documentation of the project expenditures submitted in the World Bank's system by the project but pending approval from the MOF. Niislel audit LLC 16