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 December 2015 with independent auditors report Public Disclosure Authorized Public Disclosure Authorized
Central Asia Hydrometeorology Modernization Project (Tajikistan), Grant 099848, Grant H679-TJ Financial statements CONTENTS INDEPENDENT AUDITORS REPORT Statement of cash receipts and payments... 1 Statement of funds by project components... 3 Statement of applications... 4 Statement of special account... 5 NOTES TO THE FINANCIAL STATEMENTS 1. General... 5 2. Basis of preparation... 5 3. Summary of significant accounting policies... 5 4. Cash and cash equivalents... 6 5. Project cumulative expenses... 7 6. Funds... 7 7. Cumulative other income and expenses... 7 8. Undrawn funds... 7 9. Legal cases... 7 10. Events after reporting period... 7 APPENDIX 1. RECONCILIATION OF AMOUNTS PRESENTED BY THE PCU AND REIMBURSABLE BY THE WORLD BANK AND IDA... 8
Independent auditors report To the Management of the Project Central Asia Hydrometeorology Modernisation Project (Tajikistan) We have audited the accompanying financial statements of Central Asia Hydrometeorology Modernisation Project (Tajikistan) (the Project ), which comprise the statement of cash receipts and payments, the statement of funds by project components, the statement of applications, the statement of special account for the year ended 31 December 2015, and a summary of significant accounting policies and other explanatory information (the financial statements ). Management'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 of the International Federation of Accountants, and the financial reporting provisions of Grant Agreements No. 099848 and No. Н679-TJ between the Republic of Tajikistan and the World Bank, and for such internal control as 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 conducted 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 whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal controls relevant to the entity s preparation and fair presentation of the financial statements 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 Project s internal control. An audit also includes evaluating the appropriateness of accounting policies used and 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 for our audit opinion.
Central Asia Hydrometeorology Modernization Appendix to the financial statements Project (Tajikistan), Grant No. 099848, Grant No. H679-TJ for the year ended 31 December 2015 In US dollars 1. General According to the Agreement between Kyrgyz Republic and International Bank of Reconstruction and Development (hereafter the World Bank ) dated 13 July 2011, the World Bank provided Grant No. 099848 to the amount of USD 7,000,000 to the Republic of Tajikistan. According to the Agreement between Kyrgyz Republic and International Development Association ( IDA ) dated 13 July 2011, the IDA provided Grant No. H679-TJ to the amount of Special Drawing Rights ( SDR ) 3,900,000 to the Republic of Tajikistan to render assistance in financing the Project Central Asia Hydrometeorology Modernisation Project (Tajikistan) (hereinafter the Project ). Project purpose The purpose of the Project is improving the accuracy and timeliness of rendering hydrometeorological services in Central Asia, paying a special attention to Kyrgyz Republic and Republic of Tajikistan. The Project comprises the following components: Component 1: strengthening of regional coordination and data exchange; Component 2: improving of hydrometeorological services in Kyrgyz Republic; Component 3: improving of hydrometeorological services in the Republic of Tajikistan; Project management The Project is implemented by Project Coordination Unit ( PCU ) under the State Hydrometeorology Entity of the Environmental Committee under the Government of the Republic of Tajikistan based on operating management as approved by Tajikgidromet Project Management Committee dated 12 August 2011. Address of PCU: 47 Shevchenko str., Dushanbe, 734025, Republic of Tajikistan. Duration of the Project is from 13 June 2011 to 30 June 2018. 2. Basis of preparation These financial statements are prepared in accordance with the International Public Sector Accounting Standards ( IPSAS ) Financial Reporting under the Cash Basis of Accounting issued by the Public Sector Committee of the International Federation of Accountants, and relevant points of the Grant No. 099848 and Grant No. H679-TJ. Financial statements comprise: Statement of cash receipts and payments; Statement of funds by project components; Statement of applications; Statement of special account; Notes to the financial statements including the summary of significant accounting policies and other explanatory notes. The reporting currency of these financial statements is US dollars. 3. Summary of significant accounting policies Cash basis of accounting The financial statements was prepared and presented based on cash method of accounting. Cash method of accounting is the accounting principle, according to which changes in the financial position of the entity are recognized only at the time when cash is paid or obtained. Financial statements prepared based on cash method presents information on the source of cash, application of funds objective and cash balances as at the reporting date. The measurement focus in the financial statements is balances of cash and changes therein. 5
Central Asia Hydrometeorology Modernization Appendix to the financial statements Project (Tajikistan), Grant No. 099848, Grant No. H679-TJ for the year ended 31 December 2015 In US dollars 3. Summary of significant accounting policies (continued) Foreign currency Operations in foreign currency initially are counted in functional currency by the official currency exchange rate settled 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 of the Financial Statements. All foreign exchange differences resulted from maturity or recounting are included in statement of cash receipts and payments. Non-monetary items are valued according to their historic cost in foreign currency, which presented on rates of the initial operation date. In preparing financial statements the following exchange rates of NBRT in regard to Tajik somoni were used: 31 December 2015 6.9902 31 December 2014 5.3079 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 consultants is made in accordance with the requirements and rates of the Tax Code of the Republic of Tajikistan. Project expenses The expenses are recorded in the period when they were actually paid. Sources of funds The funds to the Project were provided by World Bank and IDA by replenishment of special account or through direct payment to the end supplier of goods and/or services. 4. Cash and cash equivalents As at 31 December, cash and cash equivalents comprise: 2015 2014 Special account in foreign currency Grant No. 099848 170,687 173,362 Special account in foreign currency Grant No. H679-TJ 113,062 124,163 Transit account in national currency Grant No. H679-TJ 12,469 55,802 Transit account in national currency Grant No. 099848 11,469 40,108 Cash on hand in national currency 1,230 1,438 Cash on hand in foreign currency 14 Other 789 94 Total 309,720 394,967 6
Central Asia Hydrometeorology Modernization Appendix to the financial statements Project (Tajikistan), Grant No. 099848, Grant No. H679-TJ for the year ended 31 December 2015 In US dollars 5. Project cumulative expenses Project expenses on major categories are presented in the statement of cash receipts and payments. Project expenses on major components are presented in the statement of funds by the project components. Project expenses based on sources of financing are presented as follows: Sources of financing 2015 2014 For the For the For the period period period Cumulative Grant No. H679-TJ (681,295) (1,970,147) (710,445) (1,288,852) Grant No. 099848 (680,777) (1,984,667) (728,217) (1,303,890) Total (1,362,072) (3,954,814) (1,438,662) (2,592,742) 6. Funds Financing of the Project in 2015 and 2014 was made in the following way: Financing method / sources of financing Grant No. 099848 2015 Grant No. H679-TJ Total Reimbursement of expenses 231,782 213,356 445,138 Direct Payment 421,504 421,504 843,008 Total 653,286 634,860 1,288,146 Financing method / sources of financing Grant No. 099848 2014 Grant No. H679-TJ Total Reimbursement of expenses 250,519 250,512 501,031 Direct payment 496,357 496,357 992,714 Total 746,876 746,869 1,493,745 7. Cumulative other income and expenses Other income and expenses represent foreign exchange, interest income and commission expenses accrued by the serving bank on the ending balance of cash on special account. 8. Undrawn funds As at 31 December 2015, the undrawn part of Grant No. 099848 and Grant No. H679-TJ equals to 4,823,985 US dollars and 3,430,241 US dollars, respectively (2014: 5,447,272 US dollars and 6,157,470 US dollars, respectively). 9. Legal cases There were not any legal claims relating to the Project. 10. Events after reporting period On 8 January 2016 according to the request No. 19 the World Bank made direct payment to suppliers within Grant No. 099848 in the amount of 2,000,006 US dollars and on 19 January 2016 according to the request No. 19 within Grant No. H679-TJ the World Bank made direct payment in the amount of 2,000,006 US dollars. On 25 March 2016 the World Bank made direct payments to suppliers within Grant No.099848 according to the request No. 20 and Grant No. H679-TJ in the amounts of 42,434 US dollars each. On 8 April 2016 the World Bank made direct payments to suppliers within Grant No. 099848 and Grant No. H679-TJ Project in the same amounts of 134,412 US dollars. On 26 April 2016 according to the request No. 21 the World Bank made direct payment within Grant No. 099848 in the amount of 133,412 US dollars and on 3 May 2016 according to the request No. 21 the World Bank made direct payment within Grant No. H679-TJ in the amount of 133,412 US dollars. 7
Central Asia Hydrometeorology Modernization Appendix to the financial statements Project (Tajikistan), Grant No. 099848, Grant No. H679-TJ for the year ended 31 December 2015 In US dollars Appendix 1. Reconciliation of amounts presented by the PCU and reimbursable by the World Bank and IDA For the year ended 31 December 2015: Categories of expenditures Applications PCU World Bank and IDA Variance Grant No. 099848 Goods, advisory services, including audit, trainings, current expenses 14 109,062 109,062 15 31,262 31,262 16 231,782 231,782 17 148,680 148,680 18 132,500 132,500 653,286 653,286 Grant No. H679-TJ 14 109,062 109,062 Goods, advisory services, including 15 31,262 31,262 audit, trainings, current expenses 16 213,356 213,356 17 148,680 148,680 18 132,500 132,500 634,860 634,860 Total 1,288,146 1,288,146 For the year ended 31 December 2014: Categories of expenditures Applications PCU World Bank and IDA Variance Grant No. 099848 Goods, advisory services, including audit, trainings, current expenses 6 111,182 111,182 9 139,336 139,336 10 214,990 214,990 11 31,264 31,264 13 250,103 250,103 746,875 746,875 Grant No. H679-TJ Goods, advisory services, including 6 113,232 113,232 audit, trainings, current expenses 9 137,280 137,280 10 214,990 214,990 11 31,264 31,264 13 250,103 250,103 746,869 746,869 Total 1,493,744 1,493,744 8