K FI Cp RPC/ALM. "Private Sector Competitiveness Project" Grant No. H771-TJ. Mith Independent auditors' report. Public Disclosure Authorized

Size: px

Start display at page:

Download "K FI Cp RPC/ALM. "Private Sector Competitiveness Project" Grant No. H771-TJ. Mith Independent auditors' report. Public Disclosure Authorized"

Virgil Fowler
6 years ago
Views:

1 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized RPC/ALM "Private Sector Competitiveness Project" Grant No. H771-TJ Financial statements For the year ended 31 Decedur 2014 Mith Independent auditors' report K FI Cp Public Disclosure Authorized

2 "Private Sector Competitiveness Project Grant No TJ Financial sta ernnts Contents INDEPENDENT AUDITORS' REPORT Statement of cash receipts and payments Statement of funds by project components Statement of applications Statement of special account NOTES TO THE FINANCIAL STATEMENTS 1. General information Bases of preparaton Sunmary of significant accounting policies Cash and cash equivalents Project cumulative e.xpenses Funds Undrawn funds Legal cases Events after reporting period APPENDIX 1. RECONCILIATION OF THE AMOUNTS PROVIDED BY THE PROJECT AND REFUNDED BY THE WORLD BANK... 8

3 En-(Dapa&e 13pHCT 3HJ Sli) >KLUC TOO Opic )HTL RHr,) RHYnq Ernst & LLP A-nii, 77/7 -p. Anu-Dapa6v, 77/7 A'-FbraW ave., 11 / <<ECeHTaR Tay:p> fmma1patb 34aHime (<EceFRTa Tayap> L Anuab] K-, r. AiMafr,i, A[ 0 0 working world BRuildingaaPetyrn PeCnY6rvKaCb1 cctat PecnyinwKa Kaaxciaii Republic of Kazak[stan Ten.: Teu.: h1: f $air.: akc: Fax: ! WE&w.eyrcomo Independent auditors' report To the Management of the "Private Sector Competitiveness Project" under State Committee on Investments and Government Property Management of the Republic of Tajilkista We have audited the accompanying financial statements of the "Private Sector Comnpetit iveness Project" (the "Project"), which comprise the statement of cash receipts and payments, the statement of fund 3by project components, the statement of applications, the statement of special account for the year ended 31 December 2014, and a summary of significant accounting policies and other explanatory information (the "financial statements"). Maneagement's responsibility for the financial statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with International Public Sector Accounting Standard (IPSAS) Financial Reporting Under the Cash Basis of Accounting issued by the International Public Sector Accounting Standards Board ofth International Federation of Accountants, and the financial reporting provisions of Grant Agreement No. H771-TJ between the Republic of Tajikistan and the World Bank, and for such internal control a management determines is necessary to enable the preparation of the financial statements that are free from material misstatement, whether due to fraud or error. Auditors' responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We con ucted our audit in accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whe her the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosure,in the financial statements. The procedures selected depend on the auditor's judgment, including the asse sment of the risks of material misstatement of the financ al statements, whether due to fraud or error. In aking those risk assessments, the auditor considers internal controls relevant to the entity's preparation a d fair presentation of the financial statements in order to design audit procedures that are appropriate in e circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Project's internal control. An audit also includes evaluating the appropriateness of accounting policies used ar d the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis or our audit opinion. A thember ftra ofi Ero & Young Glomal t I m s tme mmi

4 EY Building a better working world Opinion In our opinion, the financial statements present fairly, in all material respects, the cash receipts and payments of the Project for the year ended 31 December 2014 in accordance with International Putlic Sector Accounting Standard (IPSAS) Financial Reporting Under the Cash Basis of Accounting issued )y the International Public Sector Accounting Standards Board of the International Federation of Accountaits, and the financial reporting provisions of Grant Agreement No. H771-TJ between the Republic of Taj kistan and the World Bank. Paul Cohn Audit Partner 1 June 2015 A o lixt, fiim,r rlt & Yovng flolxl imited

5 S n m - c ) o z m ;0 o - rd :T8ý, 9 1' o n ete 0 - n n ecz ṅ ee 0 pm ee h -ee 0 CC 00 ni Q s -4 0-C -- 1~5.', \ \s1 tig

6 '-ie 0- r). e e n 3 -n 8 Eo4 p 4 > 0o 3 -n C" o C n 4-0 OG4 0 -t 0 Z3b ø 0m - n<< Sn <b brd tit <b <b <h4 0 a N0 <b o- n <1bi<b

7 "Private Sector Competitiveness Project", Grant No. H771-TJ STATEMENT OF APPLICATIONS Financial statements For the year ended 31 December 2014 In US dollars 2014 Goods, advisory services, including audit, traiings, Grant don Advan operating dvac expenses Total Grant No. H771-TJ 2 64,821 64, , , , ,656 Total 531, ,663 Grant 2013 Goods, advisory serces, including audit, trainings, operating Appadon Advance expenses Total Grant No. H771-TJ 1 750, v0 Total 750, ,000 Signed and approved for issue on 1June Chairperson of the State Committee on Investments and Property Management of the Republic of Tajikistan overnment," -odini K. Chief Accountant of the State Committee on Investments and Government Property Management of the Republic of Tajikistan Zoy - The accompanwng notes on pages 5 to 7 ar integralpart of thesefinandalstatement 3

8 "Private Sector Competitiveness Project", Grant No. H771-TJ STATEMENT OF SPECIAL ACCOUNT For the year ended 31 December 2014 In US dollars Financial statements Special account Grant No. H771-TJ Currency US dollars Bank account Bank Tochprombonk of Tajikistan Bank's location 22 Rudaki str., Dushanbe, , Republic of Tajikistan Descr4tion US dolla Balance as at 1January 2013 Advances received during the reporting period (Note 6) 750,000 Total funds received to a special account 750,000 Less: The amount of eligible expenditures paid during the reporting period (135,237) Balance as at IJanuary 2014 (Note 4) 614,763 Reimbursement of expenses during the reporting period (Note 6) 531,663 Total funds received to a special account 1,146,426 Less: The amount of eligible expenditures paid during the reporting period Other expenses (794,411) Balance as at 31 December 2014 (Note 4) 351,995 Signed and approved for issue on 1June Chairperson of the State Committee on Investments and kbovernent, Property Management of the Republic of Tajikistan, Kodiri K. Chief Accountant of the State Committee on Investments and Government Property Management of the Republic of Tajikistan oy P. The accompanying notes on pages 5 to 7 are integralpart of thesefinandal statements. 4

9 "Private Sector Competitiveness Project", Notes to the financial sta-ements Grant No. H771TJ For the year ended 31 Deceml er 2014 In US dollars 1. General information According to the Agreement between Republic of Tajikistan, International Bank of Reconstruction and Deve )pment (hereafter the "World Bank") and International Development Association ("IDA") signed on 8 July 2012, the IDA rovided financing in the form of Grant No. H771-I in the amount of Special Drawing Rights ("SDR") 6,500,000 to the ReFublic of Tajikistan to render assistance in financing the "Private Sector Competitiveness Project" (hereinafter the "Project"). Project purpose The Project's purpose is to eliminate major obstacles in development of entrepreneurship and attract invest ents by simplifying the procedures for registration of entities and processes of obtaining permissions for construction; to improve regulatory provisions and infrastructure that are fundamental for provision of access to financial services and to facil tate the development of mining industry, where Tajikistan has competitive advantages. The Project comprises the following components: * Component 1: Improvement of entrepreneurial environment; * Component 2: Facilitating the development of mining industry; * Component 3: Project management; * Component 4: Improvement of Financial Infrastructure; * Component 5: Project management:. Duration of the Project is from 8 July 2012 to 30 September Project management The project implementation is carried out by Project Management Unit ("PMU") within the State Comiuee on Investments and Government Property Management of the Republic of Tajikistan based on operating management, located in the Republic of Tajikstan, Dushanbe, 27 Shotemur str. 2. Bases of preparation These financial statements are prepared in accordance with the International Public Sector Accounting Standard (PSAS") 1inancial Reporting ander the Cadh a.s6 ofamunting issued by the Public Sector Committee of the International Feder tion of Accountants, and relevant profits of the Grant No TJ. The Project's approved budget disclosed by categories of expenses is not publicly available and as such compa ison of budget and actual amounts is not presented- These financial statements consist of: * Statement of cash receipts and payments; * Statement of funds by project components; * Statement of applications; * Statement of special accounts; * Notes to the financial statements, including shorr description of main statements of accounting policy a i other descriptive notes. The reporting currency of these financial statements is US dollars. 51

10 "Private Sector Competitiveness Project", Notes to the financial sta cmuents Grant No TJ For the year ended 31 Deceml er 2014 In [U dollars 3. Summary of significant accounting policies Cash basis of accounting Financial statements are prepared on a cash basis of accounting- The cash basis of accounting recognizes transacti )ns and events only when cash (including cash equivalents) is received or paid by the entity. Financial statemcnts prepared u der the cash basis provide readers with information about the sources of cash raised during the period, the purposes for whch cash was used and the cash balances at the reporting date. The measurement focus in the financial statements is balances of cash and changes therein- Foreign currency Operations in foreign currency initially are counted in functional currency by the official currency exchange rate s tied by National Bank of the Republic of Tajikistan (the "NBRT") on a date of operation. Monetary assets and liabilities expressed in foreign currency are converted to functional currency at official exchange rate settled by the NBRT on a reporting date. All foreign exchange differences resulted from maturity or recounting are included in statement of cash recei.-s and payments. Non monetary items are valued according to their historic cost in foreign currency, which presenred on rates of tl-e initial operation date. In preparing financial statements the following exchange rates of NBRT in regard to Tajik somoni were used: 31 December December ,7741 Cash and cash equivalents Cash and cash equivalents include cash on hand and demand deposits on current and interest-bearing accounts. Taxes Calculation and payment of personal income tax and social security contributions from income of local staff and co -ultants is made in accordance with the requirements and rates of the Tax Code of the Republic of Talikistan. Project expenses The expenses are recorded in the period when they were actually paid. Sources of funds The funds were provided by World Bank to the Project by replenishment of special account or through direct pay nent to the end supplier of goods and/or services. 4. Cash and cash equivalents Cash and cash equivadents as at 31 December comprise: Special account in foreign currency 351, ,763 Cash on hand in foreign currency (tender documentation sale) 301 Transit accounti in national currency Total 352, ,773 6

11 "Private Sector Competitiveness Proiject", Notes to the financial aemeots Grant No For the year ended 31 Deceml r 2014 In US dollars 5. Project cumulative expenses Project expenditures on major categories arc presented in the statement of cash receipts and payments. Project expe editures on major components are presented in the statement of funds by project components- Projec- expenditures b sed on sources of financing are presented as follows: Sources of financing For the period Cumulative For the period Curn tive Grant No. H771 TJ 794, , ,226 13,226 Total 794, , ,226 13, Funds Financing of the Project in 2014 and 2013 was made in the following way: 2014 Financinwg mehod / source of financing Grant H771-TJ oral Reimbursement 531, L,663 Total 531,663 53, Financing method / sourceof fnancin Grant H771- TJ - otal Advances 750, ),000 Total 750, ), Undrawn funds As of 31 December 2014, the undrawn part of Grant equals to 8,070,170 US dollars (2013: 9,250,000 US dollars) 8. Legal cases There were not any legal claims relating to the Project. 9. Events after reporting period On 10 February 2015 the World Bank replenished the request No 5 in the amount of USD 397,974. 7

12 갹

Central Asia Hydrometeorology Modernisation Project (Tajikistan) Grant No , Grant No. H679-TJ

Public Disclosure Authorized Central Asia Hydrometeorology Modernisation Project (Tajikistan) Grant No. 099848, Grant No. H679-TJ Financial statements Public Disclosure Authorized For the year ended 31