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Се: - cj ' �: С� { � - � - �'� � ,�� .Cs г� • ���_ � .� � N � ` t. �_ � � _ Gf . + N 4 `�. �O � =�с' , � � �' �� � � ��: � � '� . � �, � � s� �, � ' �, � Ё'�. �' f• , � � �� �! � ari } �� �и •рΡ � ог � Lj� fj� � � . . -t м � � С., � t! l� � \ • 1 iГG+• � �, УΡ -.� � �г../ "` � jl�м(�L- �..�г� Е Д. *� � `�. � � � ��, � �i i J `�'Г 1. tк „ � W�- � ь � Ь :�; :�г �f �_ �� Lf � �г• � � м n�.� � ���'���•�•�•,� � _ г� ` -� •� � - � � lрΡ , 'С •� � �] G1 СЛ J� W N �` rj ` + + . �• � � I �� �, �� � Ё � � � (P4R) Improve Economic Opportunities for Jordanians and Syrian Refugees Ministry of Industry, Trade and Supply (MoITS) Amman - Jordan Financial Statements, Auditor's Revo For the Year Ended December 31, 2021 Table of Contents Page Independent Auditor's (Audit Bureau) Report 1 -2 Statement of Cash Receipts and Expenditures 3 Notes to Financial Statement 4-6 A UDIT BU R AU Independent Auditor's Report To: H.E Minister of Planning and International Cooperation Amman - Jordan Opinion We have audited the Financial Statement of the Final Accounts of the Ministry of Industry, Trade and Supply (MolTS), which comprise the Statement of Cash Receipts and Expenditures for the year ended at December 31, 2021, and the Notes to the Statement, including a summary of significant accounting policies. In our opinion, the accompanying Financial Statements/Final Accounts present fairly, in all material respects, the cash receipts and expenditures for the year ended at December 31, 2021, and of its financial performance for the year then ended in accordance with cash basis. Basis for Opinion We conducted our audit in accordance with International Standards of Supreme Audit Institutions (ISSAls). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Ministry in accordance with our Code of Ethics together with the ethical requirements that are relevant to our audit of the financial statements, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Responsibilities of Management and Those Charged with Governance for the Financial Statements Management is responsible for the preparation and fair presentation of the Financial Statements in accordance with cash basis, and for such internal control as management determines is necessary to enable the preparation of Financial Statements that are free from material misstatement, whether due to fraud or error. In preparing the Financial Statements, management is responsible for assessing the Ministry's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting. Those charged with governance are responsible for overseeing the Ministry's financial reporting process. Auditors' Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the Financial Statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISSAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or taken together (in the aggregate), they could reasonably be expected to influence the economic decisions of users taken on the basis of these Financial Statements. AUDF BUE A U As part of an audit in accordance with ISSAls, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: * Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. * Obtain an understanding of internal control relevant to the audit 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 Ministry's internal control. * Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. * Conclude on the appropriateness of management's use of the going concern basis of accounting, and based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Ministry's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the Financial Statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Ministry to cease to continue as a going concern. * Evaluate the overall presentation, structure and content of the Financial Statements, including the disclosures, and whether the Financial Statements represent the underlying transactions and events in a manner that achieves fair presentation. * We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Report on Other Legal and Regulatory Requirements The Ministry has proper accounting records, which are, in all material respects, consistent with the accompanying financial statements. President of the And' Bureau Asem Haddad CPA, JCPA, M Amman, Jordan May 30, 2022 24 2 Ministry of Industry, Trade and Supply (MolTS) Amman - Jordan Statement of Cash Receipts and Expenditures/Final Accounts for the Year Ended December 31, 2021 (Jordanian Dinar) Cash Receipts: Note Actual 2021 Transfers from 10,349,478 Treasury (MOF) (Budget Allocations) Expenditure: Net Increase/(Decrease) allocations Actual in Allocations 2021 2021 2021 Total Current 4 9,476,000 8,873,589 602,411 Expenditures Total Capital 5 2,101,000 1,475,889 625,111 Expenditures Total Expenditures 11,577,000 10,349,478 1,227,522 The accompanying notes are an integral part of these Project Financial Statements and to be read therewith. Ministry of Industry, Trade and Supply (MolTS) Notes to the financial statement /Final Accounts for the Year Ended December 31, 2021 1. Backaround: - On october9, 2016 The Government of the Hashemite Kingdom of Jordan (Recipient/Borrower) has signed a financing agreement with the International Development Association(Association) under the Program for Results(P4R); to improve economic opportunities for Jordanians and Syrian refugees (as a part of Jordan Compact Program), by amount of Two Hundred Million United States Dollars (USD $200,000,000). - For the same purpose, The Borrower has signed a loan agreement with the International Bank for Reconstruction and Development (Bank) to obtain a credit amount of one Hundred Million Dollars (USD $100,000,000). - For the same purpose, The Borrower has signed additional finance with International Development Association (IDA), amount of (USD $100,000,000). - The program consists of the following activities: Part A. Improving Labor Market: Carrying out a program of activities aimed at improving the access of Jordanians and Syrian refugees to the labor market in Jordan though, inter alia: (1) implementing required reforms for the issuance of work permits to Syrian refugees and legalizing their work; (2) disclosing reports on selected environmental and social conditions at the factory level. Part B. Improving the Investment Climate Carrying out reforms to improve the business environment in the recipient territory, through inter alia: (1) institutionalizing business reforms, (2) creating systems to identify required reforms and appropriate implementation tools, (3) ensuring the private sector involvement in dialogue and processing of reforms, and (4) facilitating the establishment and functioning of SMEs and home-based enterprises. Part C. Increasing Investment Promotion Carrying out a program of activities aimed at encouraging investors to develop enterprises in the recipient territory though, inter alia: (1) facilitating access to information and sites visits, and (2) strengthening the investment promotion capacity of Jordan Investment Commission (JIC). 2. Disbursements of the Loans: The total disbursements out of the proceeds of the loans agreements as follow: (USD) Year IBRD IDA GCFF/TF Total 149,000,000.00 100,000,000.00 51,000,000.00 300,000,000.00 2016 front end fees 277,512.00 - 277,512.00 2016 Disbursements 71,739,154.00 48,333,334.00 24,650,000.00 144,722,488.00 2017 Disbursements 12,502,761.00 8,391,115.00 4,279,469.00 25,173,345.00 2018 Disbursements 22,424,018.39 15,049,677.34 7,675,335.27 45,149,031.00 2019 Disbursements 27,243,111.98 18,283,968.00 9,324,823.68 54,851,903.66 2020 Disbursements 14,813,393.26 9,941,874.32 5,070,354.76 29,825,622.34 Total 148,999,950.63 99,999,968.66 50,999,982.71 299,999,902.00 4 Ministry of Industry, Trade and Supply (MolTS) Notes to the financial statement IFinal Accounts for the Year Ended December 31, 2021 The total disbursements out of the proceeds of the additional finance of USD $100,000,000 as follow: Year IDA Total 2020 Disbursements 25,000,000 25,000,000 2021 Disbursements 33,065,655 33,065,655 Total 58,065,655 58,065,655 Source: Ministry of Planning and International Cooperation 3. Basis of Accountin! The statements was prepared in accordance with International Public Sector Accounting Standard (IPSAS), under the cash basis of accounting .on this basis revenue is recognized when received rather than when earned, and expense are recognized when paid rather than when incurred. 4. Ministry of Industry, Trade and Supply/ Current Expenditures 2021 (Jordanian Dinar) Net Increase /Decrease in The program Allocations Actual Allocations Program: Administration and Support Services Activities: - Administrative and Support 5,059,000 4,833,822 225,178 Services Total: 5,059,000 j 4,833,822 225,178 Program: Regulating and Promoting Industrial and Commercial Development Activities: - Organizing and implementing 971,000 937,858 33,142 investment promotion programs Total: j 971,000 937,858 33,142 Program: Trade and Strategic Inventory Activities: - Regulating domestic and foreign 820,000 777,465 42,535 trade Total: 820,000 777,465 42,535 Program: Industrial and Trade Sector Competitiveness Activities: - Enhancing competitive capacity for 1,907,000 1,720,259 186,741 the industrial and commercial sector Total: 1,907,000 1,720,259 186,741 Program: Markets Monitoring and Oversight Activities: - Markets control and follow up 719,000 604,185 114,815 Total: 719,000 604,185 114,815 Total Current Expenditures 9,476,000 8,873,589 602,411 5 Ministry of Industry, Trade and Supply (MolTS) Notes to the financial statement /Final Accounts for the Year Ended December 31, 2021 5. Ministry of Industry. Trade and Supply / Capital Expenditures 2021 (Jordanian Dinar) Net IncreaselDecrease in The program I.Allocations Actual Allocations Program: Administration and Support Services Projects: Silos Expansion Project 486,000 486,000 - - Maintenance of the building of the Directorate of Industry and Trade / 13,000 5,764 7,236 Kasbah / Irbid Total: 499,000 491,764 7,236 Program: Regulating and Promoting Industrial and Commercial Development Projects: - Organizing and Promoting Industrial and Commercial Development 300,000 158,192 141,808 Program Administration Project - Implementing the industrial policy 250,000 250,000 - - Contribute to partnership projects with 260,000 260,000 - the private sector Total: 810,000 668,192 141,808 Program: Trade and Strategic Inventory Projects: - Establishing a fodder center for districts of Al-Taibeh and Alwastieh / 140,000 101,363 38,637 Irbid governorate - Establishment of the Theban fodder 130,000 130,000 - complex / Madaba Governorate - Establishing fodder centers in Ma'an 222,000 78,820 143,180 governorate - Establishing fodder center in Wadi 150,000 5,750 144,250 Arabah/ Aqaba governorate - Establishing fodder buildings and 150,000 - 150,000 centers in Ma'daba governorate Total: 792,000 315,933 476,067 Total Capital Expenditures 2,101,000 1,475,889 625,111 6 AUDIT EU RE A U Manazement Letter To: H.E. Minister of Planning and International Cooperation (MOPIC) The subject: the Financial Statements/Final Accounts of Ministry of Industry, Trade and Supply. As we are the auditors of the Financial Statements/Final Accounts of Ministry of Industry, Trade and Supply Entity under the World Bank Loan Agreement No. 8651-JO, and International Development Association Financing Agreement No. 5909-JO, and No. 66450-JO (Improve Economic Opportunities for Jordanians and Syrian Refugees Program): * We have audited the Financial Statements/Final Accounts of both above mentioned Ministries for the year ended December 31, 2021. * We were able to obtain reasonable assurance about whether the Financial Statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor" report that includes our opinion. * Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISSAs will always detect a material misstatement when it exists. * As part of an audit in accordance with ISSAls, we exercised professional judgment and maintain professional skepticism throughout the audit. * We have evaluated the overall presentation, structure and content of the Financial Statements, including the disclosures, and whether the Financial Statements represent the underlying transactions and events in a manner that achieves fair presentation. President of the Audit Bureau Asei dda C ,.A, MBA Amman-Jordan May 30, 2021 (P4R) Improve Economic Opportunities for Jordanians and Syrian Refugees Ministry of Labor (MoL) Amman - Jordan Financial Statements, Auditor's Report For the Year Ended December 31, 2021 Table of Contents Page Independent Auditor's (Audit Bureau) Report 1 -2 Statement of Cash Receipts and Expenditures 3 Notes to Financial Statement 4-5 AUDIT BURE Independent Auditor's Report To: H.E Minister of Planning and International Cooperation Amman - Jordan Opinion We have audited the Financial Statement of the Final Accounts of the Ministry of Labor (MoL), which comprise the Statement of Cash Receipts and Expenditures for the year ended at December 31, 2021, and the Notes to the Statement, including a summary of significant accounting policies. In our opinion, the accompanying Financial Statements present fairly, in all material respects, the cash receipts and expenditures for the year ended at December 31, 2021, and of its financial performance for the year then ended in accordance with cash basis. Basis for Opinion We conducted our audit in accordance with International Standards of Supreme Audit Institutions (ISSAIs). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Ministry in accordance with our Code of Ethics together with the ethical requirements that are relevant to our audit of the financial statements, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Responsibilities of Management and Those Charged with Governance for the Financial Statements Management is responsible for the preparation and fair presentation of the Financial Statements in accordance with cash basis, and for such internal control as management determines is necessary to enable the preparation of Financial Statements that are free from material misstatement, whether due to fraud or error. In preparing the Financial Statements, management is responsible for assessing the Ministry's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting. Those charged with governance are responsible for overseeing the Ministry's financial reporting process. Auditors' Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the Financial Statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor" report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISSAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or taken together (in the aggregate), they could reasonably be expected to influence the economic decisions of users taken on the basis of these Financial Statements. As part of an audit in accordance with ISSAls, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: * Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit 1 AUDIT BUREAU evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. * Obtain an understanding of internal control relevant to the audit 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 Company's internal control. * Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. * Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Ministry's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors" report to the related disclosures in the Financial Statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors" report. However, future events or conditions may cause the Ministry to cease to continue as a going concern. * Evaluate the overall presentation, structure and content of the Financial Statements, including the disclosures, and whether the Financial Statements represent the underlying transactions and events in a manner that achieves fair presentation. * We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Report on Other Legal and Regulatory Requirements The Ministry has proper accounting records, which are, in all material respects, consistent with the accompanying financial statements. President of the dit Bureau Asen Haddad CPA, JCPA, M Amman- Jordan 1 May 30 ,2022 2 Ministry of Labor (MoL) Amman - Jordan Statement of Cash Receipts and Expenditures/Final Accounts for the Year Ended December 31, 2021 (Jordanian Dinar) Cash Receipts: Note Actual 2021 Transfers from 8,884,571 Treasury (MOF) (Budget Allocations) Expenditure: Net Increase/(Decrease) allocations Actual in Allocations 2021 2021 2021 Total Current 4 8,074,000 7,957,434 116,566 Expenditures Total Capital 5 1,372,000 927,137 444,863 Expenditures Total Expenditures 9,446,000 8,884,571 561,429 The accompanying notes are an integral part of these Project Financial Statements and to be read therewith. 3 Ministry of Labor (MoL) Amman - Jordan Notes to the financial statement /Final Accounts for the Year Ended December 31, 2021 1. Background: - On october9, 2016 The Government of the Hashemite Kingdom of Jordan (Recipient/Borrower) has signed a financing agreement with the International Development Association(Association) under the Program for Results(P4R); to improve economic opportunities for Jordanians and Syrian refugees (as a part of Jordan Compact Program), by amount of Two Hundred Million United States Dollars (USD $200,000,000). - For the same purpose, The Borrower has signed a loan agreement with the International Bank for Reconstruction and Development (Bank) to obtain a credit amount of one Hundred Million Dollars (USD $100,000,000). - For the same purpose, The Borrower has signed additional finance with International Development Association (IDA), amount of (USD $100,000,000). - The program consists of the following activities: Part A. Improving Labor Market: Carrying out a program of activities aimed at improving the access of Jordanians and Syrian refugees to the labor market in Jordan though, inter alia: (1) implementing required reforms for the issuance of work permits to Syrian refugees and legalizing their work; (2) disclosing reports on selected environmental and social conditions at the factory level. Part B. Improving the Investment Climate Carrying out reforms to improve the business environment in the recipient territory, through inter alia: (1) institutionalizing business reforms, (2) creating systems to identify required reforms and appropriate implementation tools, (3) ensuring the private sector involvement in dialogue and processing of reforms, and (4) facilitating the establishment and functioning of SMEs and home- based enterprises. Part C. Increasing Investment Promotion Carrying out a program of activities aimed at encouraging investors to develop enterprises in the recipient territory though, inter alia: (1) facilitating access to information and sites visits, and (2) strengthening the investment promotion capacity of Jordan Investment Commission (JIC). 2. Disbursements of the Loans: The total disbursements out of the proceeds of the loans agreements of USD $300,000,000 as follow: (USD) Year IBRD IDA GCFF/TF Total 149,000,000.00 100,000,000.00 51,000,000.00 300,000,000.00 2016 front end fees 277,512.00 - - 277,512.00 2016 Disbursements 71,739,154.00 48,333,334.00 24,650,000.00 144,722,488.00 2017 Disbursements 12,502,761,00 8,391,115.00 4,279,469.00 25,173,345.00 2018 Disbursements 22,424,018.39 15,049,677.34 7,675,335.27 45,149,031.00 2019 Disbursements 27,243,111.98 18,283,968.00 9,324,823.68 54,851,903.66 2020 Disbursements 14,813,393.26 9,941,874.32 5,070,354.76 29,825,622.34 Total 148,999,950.63 99,999,968.66 50,999,982.71 299,999,902.00 The total disbursements out of the proceeds of the additional finance of USD $100,000,000 as follow: (USD) Year IDA Total 2020 Disbursements 25,000,000 25,000,000 2021 Disbursements 33,065,655 33,065,655 Total 58,065,655 58,065,655 Source: Ministry of Planning and International Cooperation 4 Ministry of Labor (MoL) Amman - Jordan Notes to the financial statement /Final Accounts for the Year Ended December 31, 2021 3.Basis of AccountinL The statements were prepared in accordance with International Public Sector Accounting Standard (IPSAS), under the cash basis of accounting. on this basis revenue is recognized when received rather than when earned, and expense are recognized when paid rather than when incurred. 4. Ministry of Labor I Current Expenditures (Jordanian Dina) Program Net allocations Actual Increase/(Decrease) in Allocations Program (1): Administration and Support Services Activities: - - Administrative and Support Services I 3,195,000 3,134,837 60,163 Total: 3,195,000 3,134,837 60,163 Program (2):Labor Market Regulation Activities: - - Regulating the Jordanian Labor Market 4,107,000 4,064,183 42,817 Total: 4,107,000 4,064,183 42,817 Program (3):Training and Employment Activities: - - Providing Training and Employment 772,000 758,414 13,586 Services to Jordanians Total: 772,000 758,414 13,586 Total Current Expenditures 8,074,000 7957,434 116,566 5.Ministry of Labor /Capital Expenditures (Jordanian Dinar Program Net Actual Increase/(Decrease) allocations in Allocations Program (1): Administration and Support Services Projects: - - Institutional Capacities Enhancement Project 100,000 53,546 46,454 - Automation of The Ministry of Labor 50,000 44,671 5,329 Total: 150,000 98,217 51,783 Program (2):Labor Market Regulation Projects: - - Reduction of Child Labor 225,000 225,000 - - Regulating Employment and Vocational 35,000 34,212 788 Work Total: 260,000 259,212 788 Program (3): Training and Employment Projects: - - Development of Employment and 60,000 37,299 22,701 Unemployment Alleviation Services - Country Services Program 847,000 477,409 369,591 Total: 907,000 514,708 392,292 Program (4): Appropriate Work Environment Projects: - - Anti-Human Trafficking Unit 55,000 55,000 - Total: 5,000 55,000 - Total Capital Expenditures 1,372,000 927,137 444,863 5 AUDIT B UREA U Management Letter To: H.E. Minister of Planning and International Cooperation (MOPIC) The subject: The Financial Statements/Final Accounts of Ministry of Labor. As we are the auditors of the Financial Statements/Final Accounts of Ministry of Labor Entity under the World Bank Loan Agreement No. 8651-JO, and International Development Association Financing Agreement No. 5909-JO, and No. 66450-JO (Improve Economic Opportunities for Jordanians and Syrian Refugees Program): * We have audited the Financial Statements/Final Accounts of both above mentioned Ministries for the year ended December 31, 2021. * We were able to obtain reasonable assurance about whether the Financial Statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor" report that includes our opinion. * Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISSAs will always detect a material misstatement when it exists. * As part of an audit in accordance with ISSAls, we exercised professional judgment and maintain professional skepticism throughout the audit. * We have evaluated the overall presentation, structure and content of the Financial Statements, including the disclosures, and whether the Financial Statements represent the underlying transactions and events in a manner that achieves fair presentation. President of the Audit B reau Asem Haddad CPA, JCPA, M A Amman-Jordan May 30, 2022c ' (P4R) Improve Economic Opportunities for Jordanians and Syrian Refugees Ministry of Social Development (MoSD) Amman - Jordan Financial Statements, Auditor's Report For the Year Ended December 31, 2021 Table of Contents Page Independent Auditor's (Audit Bureau) Report 1 -2 Statement of Cash Receipts and Expenditures 3 Notes to Financial Statement 4-8 AL.JDIT RLIRFAL1 ndDndn Independent Auditor's Report To: H. E the Minister Planning and International Cooperation Amman -Jordan Opinion We have audited the Financial Statement of the Final Accounts of the Ministry of Social Development (MoSD), which comprise the Statement of Cash Receipts and Expenditures for the year ended at December 31, 2021, and the Notes to the Statement, including a summary of significant accounting policies. In our opinion, the accompanying Financial Statements/Final Accounts present fairly, in all material respects, the cash receipts and expenditures for the year ended at December 31, 2021, and of its financial performance for the year then ended in accordance with cash basis. Basis for Opinion We conducted our audit in accordance with International Standards of Supreme Audit Institutions (ISSAls). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Ministry in accordance with our Code of Ethics together with the ethical requirements that are relevant to our audit of the financial statements, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Responsibilities of Management and Those Charged with Governance for the Financial Statements Management is responsible for the preparation and fair presentation of the Financial Statements in accordance with cash basis, and for such internal control as management determines is necessary to enable the preparation of Financial Statements that are free from material misstatement, whether due to fraud or error. In preparing the Financial Statements, management is responsible for assessing the Ministry's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting. Those charged with governance are responsible for overseeing the Ministry's financial reporting process. Auditors' Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the Financial Statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISSAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or taken together (in the aggregate), they could reasonably be expected to influence the economic decisions of users taken on the basis of these Financial Statements. AUDIT BUREAU As part of an audit in accordance with ISSAls, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. * Obtain an understanding of internal control relevant to the audit 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 Ministry's internal control. * Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. * Conclude on the appropriateness of managements use of the going concern basis of accounting, and based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Ministry's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the Financial Statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Ministry to cease to continue as a going concern. * Evaluate the overall presentation, structure and content of the Financial Statements, including the disclosures, and whether the Financial Statements represent the underlying transactions and events in a manner that achieves fair presentation. * We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Report on Other Legal and Regulatory Requirements The Ministry has proper accounting records, which are, in all material respects, consistent with the accompanying financial statements. President of the A t Bureau Asem Haddad CPA, JCPA, MB Amman, Jordan May 30, 2022 2 Ministry of Social Development (MoSD) Amman - Jordan Statement of Cash Receipts and Expenditures/Final Accounts for the Year Ended December 31, 2021 (Jordanian Dinar) Cash Receipts: Note Actual 2021 Transfers from 31,680,169 Treasury (MOF) (Budget Allocations) Expenditure: Net Increase/(Decrease) allocations Actual in Allocations 2021 2021 2021 Total Current 4 26,821,000 26,118,545 702,455 Expenditures Total Capital 5 5,980,000 5,561,624 418,376 Expenditures Total Expenditures 32,801,000 31,680,169 1,120,831 The accompanying notes are an integral part of these Project Financial Statements and to be read therewith. 3 Ministry of Social Development (MoSD) Amman - Jordan Notes to the financial statement /Final Accounts for the Year Ended December 31, 2021 1. Background: - On october9, 2016 The Government of the Hashemite Kingdom of Jordan (Recipient/Borrower) has signed a financing agreement with the International Development Association(Association) under the Program for Results(P4R); to improve economic opportunities for Jordanians and Syrian refugees (as a part of Jordan Compact Program), by amount of Two Hundred Million United States Dollars (USD $200,000,000). - For the same purpose, The Borrower has signed a loan agreement with the International Bank for Reconstruction and Development (Bank) to obtain a credit amount of one Hundred Million Dollars (USD $100,000,000). - For the same purpose, The Borrower has signed additional finance with International Development Association (IDA), amount of (USD $100,000,000). - The program consists of the following activities: Part A. Improving Labor Market: Carrying out a program of activities aimed at improving the access of Jordanians and Syrian refugees to the labor market in Jordan though, inter alia: (1) implementing required reforms for the issuance of work permits to Syrian refugees and legalizing their work; (2) disclosing reports on selected environmental and social conditions at the factory level. Part B. Improving the Investment Climate Carrying out reforms to improve the business environment in the recipient territory, through inter alia: (1) institutionalizing business reforms, (2) creating systems to identify required reforms and appropriate implementation tools, (3) ensuring the private sector involvement in dialogue and processing of reforms, and (4) facilitating the establishment and functioning of SMEs and home-based enterprises. Part C. Increasing Investment Promotion Carrying out a program of activities aimed at encouraging investors to develop enterprises in the recipient territory though, inter alia: (1) facilitating access to information and sites visits, and (2) strengthening the investment promotion capacity of Jordan Investment Commission (JIC). 2. Disbursements of the Loans: The total disbursements out of the proceeds of the loans agreements of USD $300,000,000 as follow: (USD) Year 1BRD IDA GCFFITF Total 149,000,000.00 100,000,000.00 51,000,000.00 300,000,000.00 2016 front end fees 277,512.00 - - 277,512.00 2016 Disbursements 71,739,154.00 48,333,334.00 24,650,000.00 144,722,488.00 2017 Disbursements 12,502,761.00 8,391,115.00 4,279,469.00 25,173,345.00 2018 Disbursements 22,424,018.39 15,049,677.34 7,675,335.27 45,149,031.00 2019 Disbursements 27,243,111.98 18,283,968.00 9,324,823.68 54,851,903.66 2020 Disbursements 14,813,393.26 9,941,874.32 5,070,354.76 29,825,622.34 Total 148,999,950.63 | 99,999,968.66 50,999,982.71 299,999,902.00 4 Ministry of Social Development (MoSD) Amman - Jordan Notes to the financial statement /Final Accounts for the Year Ended December 31, 2021 The total disbursements out of the proceeds of the additional finance of USD $100,000,000 as follow: Year IDA Total 2020 Disbursements 25,000,000 25,000,000 2021 Disbursements 33,065,655 33,065,655 Total 58,065,655 58,065,655 Source: Ministry of Planning and International Cooperation 3.Basis of Accountinf The statements were prepared in accordance with International Public Sector Accounting Standard (IPSAS), under the cash basis of accounting. on this basis revenue is recognized when received rather than when earned, and expense are recognized when paid rather than when incurred. 4. Ministry of Social Development / Current Expenditures 2021 (Jordanian Dinar) Net Increase/Decrease in The program Allocations Actual Allocations Program: Administration and Support Services Activities: - - Administrative and Support 6,213,782 5,998,975 214,807 Services Total: 6,213,782 5,998,975 214,807 Program: Persons with Disabilities Affairs Activities: - - Care and administration of the affairs of persons with 9,021,718 8,942,738 78,980 disabilities Total: 9,021,718 8,942,738 78,980 Program: Social Defense Activities: - - Social Defense Administration 3,625,000 3,536,578 88,422 Total: 3,625,000 3,536,578 88,422 Program: Social Development and Combating Poverty Activities: - - Anti-poverty and local societies 3,272,750 3,121,544 151,206 development administration Total: 3,272,750 3,121,544 151,206 Program: Family and childhood Activities: - - Family and Childhood Care 4,245,750 4,105,451 140,299 and Protection Total: 4,245,750 4,105,451 140,299 Program: Societies Record Activities: - 5 Ministry of Social Development (MoSD) Amman - Jordan Notes to the financial statement /Final Accounts for the Year Ended December 31, 2021 - Societies Register Admiistrtion442,000 413,259 28,741 Administration Total: 442,000 413,259 28,741 Total Current Expeedites 26,21,000 26118 702,5 5. Ministry of Social Development / Capital Expenditures 2021 (Jordanian Dinar) Net Increase/Decrease In The program Allocations Actual Allocations Program: Administration and Support Services Projects: - - Sustaining and Operating the 200,420 193,261 7,159 Ministry Services Project - Construction of various buildings 120,000 120,000 - in Irbid governorate - Construction of various buildings 50,000 35,886 14,114 in Balga' Governorate - Maintenance of developmental 52,300 42,101 10,199 centers in Jerash governorate - Establishing developmental 210,000 193,411 16,589 centers in Ma'daba governorate - Construction of development buildings in Al-Karak 55,000 11,443 43,557 governorate - Establishing development buildings and centers in Maan 139,000 138,998 2 governorate - Establishing Al- Deseh Social Development office/ Aqaba 150,000 126,503 23,497 governorate I I Total: 976,720 861,603 115,117 Program: Persons with Disabilities Affairs Projects: - - Assistance to and protection of 927,500 927,437 63 persons with disabilities - Establishing care and rehabilitation centers in Zarqa 25,000 16,598 8,402 _gvernorate - Establishing care and rehabilitation centers in Tafileh 110,000 79,274 30,726 governorate Total: 1,062,500 1,023,309 39,191 6 Ministry of Social Development (MoSD) Amman - Jordan Notes to the financial statement /Final Accounts for the Year Ended December 31, 2021 Program: social Defense Projects: - - Assistance to and protection of 321,000 319,523 1,477 juveniles and society security Total: 321,000 319,523 1,477 Program: Social Development and Combating Poverty Projects: - - Small Grant Project 74,300 74,300 - Constructing houses for the poor 85,000 84,442 558 families - Maintenance of poor families 30,000 29,997 3 houses (Royal Decree) - Enhancing productivity and 102,000 102,000 - eliminating poverty - Establishing centers for local community development in Balqa 5,000 - 5,000 governorate - Establishing centers for local community development in Tafileh 70,000 5,987 64,013 governorate - Construction and maintenance of housing for poor families in Mafraq 50,000 35,264 14,736 Governorate - Construction and maintenance of housing for poor families in Al 350,000 329,060 20,940 Zarqa Governorate - Construction and maintenance of housing for poor families in Ma'an 81,000 60,840 20,160 Governorate - Construction and maintenance of housing for poor families in Tafilch 40,000 32,760 7,240 Governorate - Construction and maintenance of housing for poor families in Al 110,000 100,100 9,900 Aqaba Governorate - Productive projects to rehabilitate 50,000 43,500 6,500 poor families in Mafraq Governorate - Productivity enhancement project in 20,000 18,000 2,000 Aqaba Governorate - Construction and purchase of housing for poor families in Ajloun 26,000 26,000 Governorate - Construction, purchase and maintenance of housing for poor 153,000 138,004 14,996 families in Irbid Governorate - Maintenance of homes for chaste families and poor families / Ajloun 75,000 67,408 7,592 Governorate - Construction and maintenance of housing for poor families in Capital 330,000 316,780 13,220 Governorate 7 Ministry of Social Development (MoSD) Amman - Jordan Notes to the financial statement /Final Accounts for the Year Ended December 31, 2021 - Projects of productive families in 20,000 - 20,000 the Capital Governorate - Construction and maintenance of housing for poor families in Al 150,000 133,760 16,240 Bakqa Governorate - Projects of productive families in 244,000 222,500 21,500 Irbid Governorate - Housing for poor families in Jerash 22,700 20,216 2,484 Governorate - Construction and maintenance of housing for poor families in Al 120,000 120,000 - Marga Governorate Total: 2,208,000 1,960,918 247,082 Program: Family and childhood Projects: - - Marriage of beneficiaries from 11,800 8,790 3,010 shelter institutions - Assistance to and protection of family, infants and elderly people 564,980 552,607 12,373 rights Total: 576,780 561,397 15,383 Program: Societies Record Projects: - - Associations Support Fund 815,000 814,874 126 - Charitable Universities Support 20,000 20,000 - Fund in Aqaba Governorate Total: 835,000 834,874 126 Total Capital Expenditures 5,980,000 5,561,624 418,376 8 AUDIT B U RE A U Management Letter To: H.E. Minister of Planning and International Cooperation (MOPIC) The subject: The Financial Statements/Final Accounts of Ministry of Social Development. As we are the auditors of the Financial Statements/Final Accounts of Ministry of Social Development Entity under the World Bank Loan Agreement No. 8651-JO, and International Development Association Financing Agreement No. 5909-JO, and No. 66450-JO (Improve Economic Opportunities for Jordanians and Syrian Refugees Program): * We have audited the Financial Statements/Final Accounts of both above mentioned Ministries for the year ended December 31, 2021. * We were able to obtain reasonable assurance about whether the Financial Statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor" report that includes our opinion. * Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISSAs will always detect a material misstatement when it exists. * As part of an audit in accordance with ISSAls, we exercised professional judgment and maintain professional skepticism throughout the audit. * We have evaluated the overall presentation, structure and content of the Financial Statements, including the disclosures, and whether the Financial Statements represent the underlying transactions and events in a manner that achieves fair presentation. President of the Au * Bureau Asem Had d CPA, J A Amman-Jordan May 30, 2029 (P4R) Improve Economic Opportunities for Jordanians and Syrian Refugees Ministry of Local Administration (MoLA) Amman - Jordan Financial Statements, Auditor's Report For the Year Ended December 31, 2021 Table of Contents Page Independent Auditor's (Audit Bureau) Report 1 -2 Statement of Cash Receipts and Expenditures 3 Notes to Financial Statement 4-6 A UDIT B V REA U Independent Auditor's Report To: H.E. the Minister of Planning and International Cooperation Amman - Jordan Opinion We have audited the Financial Statement of the Final Accounts of the Ministry of Local Administration (MoLA), which comprise the Statement of Cash Receipts and Expenditures for the year ended at December 31, 2021, and the Notes to the Statement, including a summary of significant accounting policies. In our opinion, the accompanying Financial Statements present fairly, in all material respects, the cash receipts and expenditures for the year ended at December 31, 2021, and of its financial performance for the year then ended in accordance with cash basis. Basis for OpiniLon We conducted our audit in accordance with International Standards of Supreme Audit Institutions (ISSAls). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Ministry in accordance with our Code of Ethics together with the ethical requirements that are relevant to our audit of the financial statements, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Responsibilities of Management and Those Charged with Governance for the Financial Statements Management is responsible for the preparation and fair presentation of the Financial Statements in accordance with cash basis, and for such internal control as management determines is necessary to enable the preparation of Financial Statements that are free from material misstatement, whether due to fraud or error. In preparing the Financial Statements, management is responsible for assessing the Ministry's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting. Those charged with governance are responsible for overseeing the Ministry's financial reporting process. Auditors' Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the Financial Statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor" report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISSAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or taken together (in the aggregate), they could reasonably be expected to influence the economic decisions of users taken on the basis of these Financial Statements. As part of an audit in accordance with ISSAls, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: * Identify and assess the risks of material misstatement of the financial statements, whether due 1 to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. * Obtain an understanding of internal control relevant to the audit 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 Company's internal control. * Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. * Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Ministry's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors" report to the related disclosures in the Financial Statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors" report. However, future events or conditions may cause the Ministry to cease to continue as a going concern. * Evaluate the overall presentation, structure and content of the Financial Statements, including the disclosures, and whether the Financial Statements represent the underlying transactions and events in a manner that achieves fair presentation. * We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Report on Other Leeal and ReeulatorY Requirements The Ministry has proper accounting records, which are, in all material respects, consistent with the accompanying financial statements. President of the Audit Bureau Asem Haddad CPA, JCPA, MBA Amman-Jordan May 30 ,2022 Cr 2 Ministry of Local Administration (MoLA) Amman - Jordan Statement of Cash Receipts and Expenditures/Final Accounts for the Year Ended December 31, 2021 (Jordanian Dinar) Cash Receipts: Note Actual 2021 Transfers from Treasury (MOF) - (Budget Allocations) Expenditure: Net Increase/(Decrease) allocations Actual in Allocations 2021 2021 2021 Total Current 4 6,990,000 6,824,333 165,667 Expenditures Total Capital 5 135,272,000 130,698,212 4,573,788 Expenditures Total Expenditures 142,262,000 137,522,545 4,739,455 The accompanying notes are an integral part of these Project Financial Statements and to be read therewith. 3 Ministry of Local Administration (MoLA) Amman - Jordan Notes to the financial statement /Final Accounts for the Year Ended December 31, 2021 1. Background: - On october9, 2016 The Government of the Hashemite Kingdom of Jordan (Recipient/Borrower) has signed a financing agreement with the International Development Association(Association) under the Program for Results(P4R); to improve economic opportunities for Jordanians and Syrian refugees (as a part of Jordan Compact Program), by amount of Two Hundred Million United States Dollars (USD $200,000,000). - For the same purpose, The Borrower has signed a loan agreement with the International Bank for Reconstruction and Development (Bank) to obtain a credit amount of one Hundred Million Dollars (USD $100,000,000). - For the same purpose, The Borrower has signed additional finance with International Development Association (IDA), amount of (USD $100,000,000). The program consists of the following activities: Part A. Improving Labor Market: Carrying out a program of activities aimed at improving the access of Jordanians and Syrian refugees to the labor market in Jordan though, inter alia: (1) implementing required reforms for the issuance of work permits to Syrian refugees and legalizing their work; (2) disclosing reports on selected environmental and social conditions at the factory level. Part B. Improving the Investment Climate Carrying out reforms to improve the business environment in the recipient territory, through inter alia: (1) institutionalizing business reforms, (2) creating systems to identify required reforms and appropriate implementation tools, (3) ensuring the private sector involvement in dialogue and processing of reforms, and (4) facilitating the establishment and functioning of SMEs and home- based enterprises. Part C. Increasing Investment Promotion Carrying out a program of activities aimed at encouraging investors to develop enterprises in the recipient territory though, inter alia: (1) facilitating access to information and sites visits, and (2) strengthening the investment promotion capacity of Jordan Investment Commission (JIC). 2. Disbursements of the Loans: The total disbursements out of the proceeds of the loan's agreements of USD $300,000,000 as follow: (USD) Year IBRD IDA GCFF/TF Total 149,000,000.00 100,000,000.00 51,000,000.00 300,000,000.00 2016 front end fees 277,512.00 - - 277,512.00 2016 Disbursements 71,739,154.00 48,333,334.00 24,650,000.00 144,722,488.00 2017 Disbursements 12,502,761.00 8,391,115.00 4,279,469.00 25,173,345.00 2018 Disbursements 22,424,018.39 15,049,677.34 7,675,335.27 45,149,031.00 2019 Disbursements 27,243,111.98 18,283,968.00 9,324,823.68 54,851,903.66 2020 Disbursements 14,813,393.26 9,941,874.32 5,070,354.76 29,825,622.34 Total 148,999,950.63 99,999,968.66 50,999,982.71 299,999,902.00 The total disbursements out of the proceeds of the additional finance of USD $100,000,000 as follow: (USD) Year IDA Total 2020 Disbursements 25,000,000 25,000,000 2021 Disbursements 33,065,655 33,065,655 Total 58,065,655 58,065,655 Source: Ministry of Planning and International Cooperation 4 Ministry of Local Administration (MoLA) Amman - Jordan Notes to the financial statement /Final Accounts for the Year Ended December 31, 2021 3. Basis of Accounting The statements were prepared in accordance with International Public Sector Accounting Standard (IPSAS), under the cash basis of accounting. on this basis revenue is recognized when received rather than when earned, and expense are recognized when paid rather than when incurred. 4. Ministry of Local Administration / Current Expenditures (Jordanian Dinar) Program Net allocations Actual Excess/(deficit) in provisions Program (1): Administration and Support Services. Activities: - - Administrative and Support Services 3,570,911 3,488,793 82,118 Total: 3,570,911 3,488,793 82,118 Program (2): Planning and Organization. - Activities: - - Municipalities structural organization 1,398,000 1,369,266 28,714 plans administration Total: 1,398,000 1,369,266 28,714 Program (3): Engineering Services and Works. Activities: - - Engineering studies and designs for 2,021,089 1,966,254 54,835 services and infrastructure projects Total: 2,021,089 1,966,254 54,835 Total Current Expenditures 6,990,000 6,824 33 165 667 5.Ministry of Local Administration /Capital Expenditures (Jordanian Dinar) Program Net Actual Excess/(deflcit) allocations in provisions Program (1): Appropriations Of Administration and Support Services Program as Per Activities and Projects. Projects: - - Administrative Capacities Enhancement 551,000 521,326 29,674 Total: 551,000 521,326 29,674 Program (2): Appropriations Of Planning and Organization Program as Per Activities and Projects. Projects: - - The National Plan for Land Usage 124,000 114,931 9,069 Total: 124,000 114,931 9,069 Program (3): Appropriations Of Engineering Services and Works Program as Per Activities and Projects. Projects: - - Solid Waste Management Strategy! 8,100,000 3,864,955 4,235,045 Manufacturing Stations - Construction of multi-purpose halls in Madaba 147,000 47,000 100,000 goverorate - Construction and maintenance of buildings in 20,000 20,000 - Mafraq Governorate - Improving the entrance to Wadi Al-Tawahin 200,000 - 200,000 Road from the Ajloun side 5 Ministry of Local Administration (MoLA) Amman - Jordan Notes to the financial statement /Final Accounts for the Year Ended December 31, 2021 - Purchasing insecticides for public safety in 20,000 20,000 Ma'an Municipality - Establishing a garden in the Al-Tur 10,000 10,000 neighborhood to serve the people in Maan - Maintenance of the Greater Jerash Municipality 100,000 100,000 Park Total: 8,597,000 4,061,955 4,535,045 Program (4): Local Development Program Projects: - - Developing and improving the municipalities 126,000,000 126,000,000 - Total: 126,000,000 126,000,000 - Total Capital Expenditures 135,272,000 130,698,212 4,573,788 6 A UODIT U f A U Management Letter To: H.E. Minister of Planning and International Cooperation (MOPIC) The subject: The Financial Statements/Final Accounts of Ministry of Local Administration. As we are the auditors of the Financial Statements/Final Accounts of Ministry of Local Administration Entity under the World Bank Loan Agreement No. 8651-JO, and International Development Association Financing Agreement No. 5909-JO, and No. 66450-JO (Improve Economic Opportunities for Jordanians and Syrian Refugees Program): * We have audited the Financial Statements/Final Accounts of both above mentioned Ministries for the year ended December 31, 2021. * We were able to obtain reasonable assurance about whether the Financial Statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor" report that includes our opinion. * Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISSAs will always detect a material misstatement when it exists. * As part of an audit in accordance with ISSAIs, we exercised professional judgment and maintain professional skepticism throughout the audit. * We have evaluated the overall presentation, structure and content of the Financial Statements, including the disclosures, and whether the Financial Statements represent the underlying transactions and events in a manner that achieves fair presentation. President of the Audi ureau Asem Had CPA, JCP , MBA Amman-Jordan May 30, 2022 (P4R) Improve Economic Opportunities for Jordanians and Syrian Refugees Ministry of Agriculture (MoA) Amman - Jordan Financial Statements, Auditor's Report For the Year Ended December 31, 2021 Table of Contents Page Independent Auditor's (Audit Bureau) Report 1 -2 Statement of Cash Receipts and Expenditures 3 Notes to Financial Statement 4-8 A uDIT B U u A U Independent Auditor's Report To: H.E. the Minister of Planning and International Cooperation Amman - Jordan Opinion We have audited the Financial Statement of the Final Accounts of the Ministry of Agriculture (MoA), which comprise the Statement of Cash Receipts and Expenditures for the year ended at December 31, 2021, and the Notes to the Statement, including a summary of significant accounting policies. In our opinion, the accompanying Financial Statements present fairly, in all material respects, the cash receipts and expenditures for the year ended at December 31, 2021, and of its financial performance for the year then ended in accordance with cash basis. Basis for Opinion We conducted our audit in accordance with International Standards of Supreme Audit Institutions (ISSAls). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Ministry in accordance with our Code of Ethics together with the ethical requirements that are relevant to our audit of the financial statements, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Responsibilities of Management and Those Charged with Governance for the Financial Statements Management is responsible for the preparation and fair presentation of the Financial Statements in accordance with cash basis, and for such internal control as management determines is necessary to enable the preparation of Financial Statements that are free from material misstatement, whether due to fraud or error. In preparing the Financial Statements, management is responsible for assessing the Ministry's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting. Those charged with governance are responsible for overseeing the Ministry's financial reporting process. Auditors' Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the Financial Statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor" report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISSAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or taken together (in the aggregate), they could reasonably be expected to influence the economic decisions of users taken on the basis of these Financial Statements. 1 A U D I T B U R E A U As part of an audit in accordance with ISSAls, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: * Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. * Obtain an understanding of internal control relevant to the audit 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 Company's internal control. * Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. * Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Ministry's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors" report to the related disclosures in the Financial Statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors" report. However, future events or conditions may cause the Ministry to cease to continue as a going concern. * Evaluate the overall presentation, structure and content of the Financial Statements, including the disclosures, and whether the Financial Statements represent the underlying transactions and events in a manner that achieves fair presentation. * We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Report on Other Legal and Regulatory Requirements The Ministry has proper accounting records, which are, in all material respects, consistent with the accompanying financial statements. President of the dit Burea Asem Haddad CPA, JCPA, Amman-Jordan May 30,2022 2 Ministry of Agriculture (MoA) Amman - Jordan Statement of Cash Receipts and Expenditures/Final Accounts for the Year Ended December 31, 2021 (Jordanian Dinar) Cash Receipts: Note Actual 2021 Transfers from 63,258,143 Treasury (MOF) (Budget Allocations) Expenditure: Net Increase/(Decrease) allocations Actual in Allocations 2021 2021 2021 Total Current 4 53,419,000 53,144,396 274,604 Expenditures Total Capital 5 10,395,300 9,744,909 650,391 Expenditures funded by Treasury Total Capital 6 394,700 368,838 25,862 Expenditures funded by Loans Total Expenditures 64,209,000 63,258,143 950,857 The accompanying notes are an integral part of these Project Financial Statements and to be read therewith. 3 Ministry of Agriculture (MoA) Amman - Jordan Notes to the financial statement /Final Accounts for the Year Ended December 31, 2021 1. Background: On october9, 2016 The Government of the Hashemite Kingdom of Jordan (Recipient/Borrower) has signed a financing agreement with the International Development Association (Association) under the Program for Results(P4R); to improve economic opportunities for Jordanians and Syrian refugees (as a part of Jordan Compact Program), by amount of Two Hundred Million United States Dollars (USD $200,000,000). - For the same purpose, The Borrower has signed a loan agreement with the International Bank for Reconstruction and Development (Bank) to obtain a credit amount of one Hundred Million Dollars (USD $100,000,000). - For the same purpose, The Borrower has signed additional finance with International Development Association (IDA), amount of (USD $100,000,000). - The program consists of the following activities: Part A. Improving Labor Market: Carrying out a program of activities aimed at improving the access of Jordanians and Syrian refugees to the labor market in Jordan though, inter alia: (1) implementing required reforms for the issuance of work permits to Syrian refugees and legalizing their work; (2) disclosing reports on selected environmental and social conditions at the factory level. Part B. Improving the Investment Climate Carrying out reforms to improve the business environment in the recipient territory, through inter alia: (1) institutionalizing business reforms, (2) creating systems to identify required reforms and appropriate implementation tools, (3) ensuring the private sector involvement in dialogue and processing of reforms, and (4) facilitating the establishment and functioning of SMEs and home- based enterprises. Part C. Increasing Investment Promotion Carrying out a program of activities aimed at encouraging investors to develop enterprises in the recipient territory though, inter alia: (1) facilitating access to information and sites visits, and (2) strengthening the investment promotion capacity of Jordan Investment Commission (JlC). 2. Disbursements of the Loans: The total disbursements out of the proceeds of the loans agreements of USD $300,000,000 as follow: (USD) Year IBRD IDA GCFFITF Total 149,000,000.00 100,000,000.00 51,000,000.00 300,000,000.00 2016 front end fees 277,512.00 - - 277,512.00 2016 Disbursements 71,739,154.00 48,333,334.00 24,650,000.00 144,722,488.00 2017 Disbursements 12,502,761.00 8,391,115.00 4,279,469.00 25,173,345.00 2018 Disbursements 22,424,018.39 15,049,677.34 7,675,335.27 45,149,031.00 2019 Disbursements 27,243,111.98 18,283,968.00 9,324,823.68 54,851,903.66 2020 Disbursements 14,813,393.26 9,941,874.32 5,070,354.76 29,825,622.34 Total 148,999,950.63 99,999,968.66 50,999,982.71 299,999,902.00 4 Ministry of Agriculture (MoA) Amman - Jordan Notes to the financial statement /Final Accounts for the Year Ended December 31, 2021 The total disbursements out of the proceeds of the additional finance of USD $100,000,000 as follow: (USD) Year IDA Total 2020 Disbursements 25,000,000 25,000,000 2021 Disbursements 33,065,655 33,065,655 Total 58,065,655 58,065,655 Source: Ministry of Planning and International Cooperation 3. Basis of Accounting The statements were prepared in accordance with International Public Sector Accounting Standard (IPSAS), under the cash basis of accounting. on this basis revenue is recognized when received rather than when earned, and expense are recognized when paid rather than when incurred. 4. Ministry of Agriculture / Current Expenditures (Jordanian Dinar) The program Net Allocations Actual Increase/(Decrease) in Allocations Program (1) : Administration and support services Activities: - Administrative and support services 23,809,500 I 23,760,941 48,559 Total: 23,809,500 23,760,941 48,559 Program (2) : Animal resources, Veterinary and Laboratories Activity: - Sustaining work of veterinary 8,951,500 8,943,502 7,998 laboratories and animal production stations Total: 8,951,500 8,943,502 7,998 Program (3): Forestry, Pastures and Nurseries Development Activities: - - Raising forestry awareness and 5,370,000 5,336,171 33,829 guidance Total: 5,370,000 5,336,171 33,829 Program (4) : plant production and protection Activities: - - Plant Production and Protection 6,193,000 6,162,253 30,747 administration Total: 6,193,000 j 6,162,253 30,747 Program (5): Land Reclamation and Development Activities: - - Land Development and Reclamation 1,886,000 1,872,153 13,847 administration Total: 1,886,000 1,872,153 13,847 Program (6): The National Center for Agricultural Research and extension Activities: - - Agricultural Research and Extension 7,209,000 7,069,376 139,624 administration Total; 7,209,000 7,069,376 139,624 Total current expenditures 53,419,000 53,144,396 274,604 5 Ministry of Agriculture (MoA) Amman - Jordan Notes to the financial statement /Final Accounts for the Year Ended December 31, 2021 5. Ministry of Agriculture / Capital Expenditures funded by Treasury: (Jordanian Dinar) The program Net Allocations Actual Increase/(Decrease) e p a in Allocations Program (1): Administration and Support Services Projects: - - Project Sustaining and developing 2,378,300 2,365,804 12,496 agricultural services - Agricultural Risk Fund 1,000,000 1,000,000 - - Establishment agricultural database 77,000 76,969 31 - Constructing and maintaining of 244,333 184,027 60,306 buildings in Ajloun Governorate - Improving the agricultural facilities in 171,000 169,710 1,290 the capital Governorate - Establishing and expanding 25,000 10,813 14,187 agricultural centers in Zarqa Governorate - Establishing a building for farmers 279,200 279,149 51 services / Madaba Governorate - Establishing and equipping buildings 40,000 40,000 - in Balga Governorate - Maintain and expand of buildings in 30,000 29,687 313 Balga Governorate - Establishing and maintaining buildings 125,000 62,165 62,835 and stations in Al-Karak Governorate - Establishing and maintaining 161,000 39,994 121,006 agriculture buildings in Ma'an Governorate - Maintenance and rehabilitation of 36,100 35,916 184 agricultural directorates and centers in Aqaba Governorate - Agricultural guidance in Zarqa 10,000 7,549 2,451 Governorate Total: 4,576,933 4,301,783 275,150 Program (2): Animal resources, Veterinary and Laboratories Projects: - - Support and protection livestock 897,200 877,640 19,560 resources - Establishing and equipping veterinary 145,700 145,071 629 laboratories and clinics in Irbid Governorate - Establishing and equipping veterinary 150,000 79,007 70,993 clinics and laboratories in Mafraq Governorate - Agricultural quarry, Al Mudawara 18,800 13,760 5040 Borders Center, Ma'an governorate - Rehabilitating veterinary clinics and 56,957 40,699 16,258 laboratories in Ma'an Governorate - Establishing veterinary clinics and 212,500 212,081 419 laboratories in Aqaba Governorate - Establish and develop of veterinary 60,000 48,758 11,242 clinics in Zarga Governorate - Livestock and veterinary in Mafraq 50,000 44,000 6000 Governorate 6 Ministry of Agriculture (MoA) Amman - Jordan Notes to the financial statement /Final Accounts for the Year Ended December 31, 2021 - Disease and plant worm control in the 5,000 4,636 364 Capital Governorate Total: 1,596,157 1,465,652 130,505 Program (3): Forestry, Pasture and Nurseries Development Projects: - - Protecting and sustaining forestry 552,500 551,090 1,410 resources - Rehabilitating forestry stations, 232,000 226,835 5,165 nurseries and forest protection in Jerash Governorate - Rehabilitating the forestry stations, 20,000 18,932 1,068 nurseries and researches in Ajloun Governorate - Improving the productivity of pastures 139,000 127,705 11,295 and livestock in the Capital Governorate - Rehabilitating the forestry stations in 8,500 7,980 520 Balga Governorate - Establishing forests and gardens in Al- 18,000 - 18,000 Ma'an Governorate - Drilling wells and developing pastures 15,000 10,311 4,689 in Karak Governorate Total: 985,000 942,853 42,147 Program (4): Plantkoduction and protection Projects: - - Establishing pesticides residues 340,000 340,000 - analysis laboratory Jordan Valley ____ 12_,7 - supporting plants wealth 310,500 308,124 2,376 - Combating the plant worm 20,000 19,874 126 (Syringopais Tempertella) Karak - Al Qaser - Al-Mazar / Karak governorate - Rehabilitation of gardens in Ma'an 16,063 - 16,063 Governorate - Phytosanitary Laboratory in Maftraq 100,000 53,146 46,854 Governorate - Disease control and olive fly in Karak 35,000 29,137 5,863 governorate Total: 821,563 750,281 71,282 Program (5): Land Reclamation and Development Projects: - - water harvest 70,000 61,911 8,089 - Water harvesting and improving the 70,000 59,052 10,948 income of poor families in Jerash Governorate - Land of the Reclamation in Ajloun 85,667 82,951 2,716 Governorate - Reclamation of agricultural land in Al- 56,500 56,480 20 Balga Governorate - Reclamation of agricultural land in 70,000 64,720 5,280 Zarga Governorate - Development projects for farmers in 89,180 79,519 9,661 Ma'an Governorate - Supporting poor families in Ma'an 39,000 38,900 100 Governorate 7 Ministry of Agriculture (MoA) Amman - Jordan Notes to the financial statement fFinal Accounts for the Year Ended December 31, 2021 - Protection of the valleys banks / Tafila 9,258 8,926 332 governorate - Water harvest and improving income 85,000 60,453 24,547 of poor families in the Capital Governorate - Agricultural projects in Balqa 210,000 205,995 4,005 Governorate - Food security in Zarga Governorate 50,000 49,896 104 - Agricultural projects in Madaba 90,000 90,000 - Governorate - Opening agricultural roads in Ma'an 31,000 30,930 70 Governorate - Agricultural development projects in 70,742 68,558 2,184 Tafila Governorate - Reclaming Land, agricultural 282,300 244,468 37,832 development and water harvesting Total: 1,308,647 1,202,759 105,888 Program (6): National Center for Agricultural Research Projects: - - Agricultural research 585,000 582,221 2,779 - Establishing a building for the 47,000 44,338 2,662 regional center in Deir Alla - Increasing planting of irrigated wheat 250,000 241,822 8,178 and barly seeds - Improving camel management for milk 20,000 19,960 40 production / Mafraq Governorate - Al-Khanasri plant projects in Mafraq 30,000 30,000 Governorate - Agricultural researches projects in 125,000 119,726 5,274 Aqaba Governorate - Construction of a center in Khalidiya 30,000 26,378 3,622 Station, Mafraq Governorate - Conservation of the equine family in 20,000 17,136 2,864 Mafraq Goverorate Total: 1,107,000 1,081,581 25,419 Total capital expenditures funded by 10,395,300 9,744,909 650,391 treasury 6.Ministry of Agriculture / Capital Expenditures funded by Loans: (Jordanian Dinar) Program Net allocations Actual Increase/(Decrease) in Allocations Program (1): Land Reclamation and Development Projects: - - Investing in small ruminants and 394,700 368,838 25,862 liffing rural families out of poverty Total: 394,700 368,838 25,862 Total capital expenditures funded by 394,700 368,838 25,862 loans 8 AUDIT BURE A U Management Letter To: H.E. Minister of Planning and International Cooperation (MOPIC) The subject: The Financial Statements/Final Accounts of Ministry of Agriculture. As we are the auditors of the Financial Statements/Final Accounts of Ministry of Agriculture Entity under the World Bank Loan Agreement No. 8651-JO, and International Development Association Financing Agreement No. 5909-JO, and No. 66450-JO (Improve Economic Opportunities for Jordanians and Syrian Refugees Program): * We have audited the Financial Statements/Final Accounts of both above mentioned Ministries for the year ended December 31, 2021. * We were able to obtain reasonable assurance about whether the Financial Statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors" report that includes our opinion. * Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISSAs will always detect a material misstatement when it exists. * As part of an audit in accordance with ISSAls, we exercised professional judgment and maintain professional skepticism throughout the audit. * We have evaluated the overall presentation, structure and content of the Financial Statements, including the disclosures, and whether the Financial Statements represent the underlying transactions and events in a manner that achieves fair presentation. President of the Au Bureau Asem Hadd CPA, JCP MBA A a\n Amman-Jordan May 30, 2022 (P4R) Improve Economic Opportunities for Jordanians and Syrian Refugees Ministry of Investment (Mol) Amman - Jordan Financial Statements, Auditor's Repo For the Year Ended December 31, 2021 Table of Contents Page Independent Auditor's (Audit Bureau) Report 1 -2 Statement of Cash Receipts and Expenditures 3 Notes to Financial Statement 4-5 Independent Auditor's Report To: HE Minister of Planning and International Cooperation Amman - Jordan Opinion We have audited the Financial Statement of the Final Accounts of the Ministry of Investment (Mol), which comprise the Statement of Cash Receipts and Expenditures for the year ended at December 31, 2021, and the Notes to the Statement, including a summary of significant accounting policies. In our opinion, the accompanying Financial Statements/Final Accounts present fairly, in all material respects, the cash receipts and expenditures for the year ended at December 31, 2021, and of its financial performance for the year then ended in accordance with cash basis. Basis for Opinion We conducted our audit in accordance with International Standards of Supreme Audit Institutions (ISSAIs). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Ministry in accordance with our Code of Ethics together with the ethical requirements that are relevant to our audit of the financial statements, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Responsibilities of Management and Those Charged with Governance for the Financial Statements Management is responsible for the preparation and fair presentation of the Financial Statements in accordance with cash basis, and for such internal control as management determines is necessary to enable the preparation of Financial Statements that are free from material misstatement, whether due to fraud or error. In preparing the Financial Statements, management is responsible for assessing the Ministry's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting. Those charged with governance are responsible for overseeing the Ministry's financial reporting process. Auditors' Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the Financial Statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISSAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or taken together (in the aggregate), they could reasonably be expected to influence the economic decisions of users taken on the basis of these Financial Statements. I AUDIT BUREAU As part of an audit in accordance with ISSAls, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: * Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. * Obtain an understanding of internal control relevant to the audit 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 Ministry's internal control. * Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. * Conclude on the appropriateness of management's use of the going concern basis of accounting, and based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Ministry's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the Financial Statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Ministry to cease to continue as a going concern. * Evaluate the overall presentation, structure and content of the Financial Statements, including the disclosures, and whether the Financial Statements represent the underlying transactions and events in a manner that achieves fair presentation. * We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Report on Other Legal and Regulatory Requirements The Ministry has proper accounting records, which are, in all material respects, consistent with the accompanying financial statements. President of the udit B Asem Hadd Amman, Jordan May 30, 2022 2 Ministry of Investment (Mol) Amman - Jordan Statement of Cash Receipts and Expenditures/Final Accounts for the Year Ended December 31, 2021 (Jordanian Dinar) Cash Receipts: Note Actual 2021 Transfers from 4,577,511 Treasury (MOF) (Budget Allocations) Expenditure: Net Increase/(Decrease) allocations Actual in Allocations 2021 2021 2021 Total Current 4 3,464,000 3,210,632 253,368 Expenditures Total Capital 5 1,728,000 1,366,879 361,121 Expenditures Total Expenditures 5,192,000 4,577,511 614,489 The accompanying notes are an integral part of these Project Financial Statements and to be read therewith. 3 Ministry of Investment (Mol) Amman - Jordan Notes to the financial statement /Final Accounts for the Year Ended December 31, 2021 1. Background: - On october9, 2016 The Government of the Hashemite Kingdom of Jordan (Recipient/Borrower) has signed a financing agreement with the International Development Association(Association) under the Program for Results(P4R); to improve economic opportunities for Jordanians and Syrian refugees (as a part of Jordan Compact Program), by amount of Two Hundred Million United States Dollars (USD $200,000,000). - For the same purpose, The Borrower has signed a loan agreement with the International Bank for Reconstruction and Development (Bank) to obtain a credit amount of one Hundred Million Dollars (USD $100,000,000). - For the same purpose, The Borrower has signed additional finance with International Development Association (IDA), amount of (USD $100,000,000). - The program consists of the following activities: Part A. Improving Labor Market: Carrying out a program of activities aimed at improving the access of Jordanians and Syrian refugees to the labor market in Jordan though, inter alia: (1) implementing required reforms for the issuance of work permits to Syrian refugees and legalizing their work; (2) disclosing reports on selected environmental and social conditions at the factory level. Part B. Improving the Investment Climate Carrying out reforms to improve the business environment in the recipient territory, through inter alia: (1) institutionalizing business reforms, (2) creating systems to identify required reforms and appropriate implementation tools, (3) ensuring the private sector involvement in dialogue and processing of reforms, and (4) facilitating the establishment and functioning of SMEs and home-based enterprises. Part C. Increasing Investment Promotion Carrying out a program of activities aimed at encouraging investors to develop enterprises in the recipient territory though, inter alia: (1) facilitating access to information and sites visits, and (2) strengthening the investment promotion capacity of Jordan Investment Commission (JIC). 2. Disbursements of the Loans: The total disbursements out of the proceeds of the loans agreements as follow: (USD) Year IBRD IDA GCFF/TF Total 149,000,000.00 100,000,000.00 51,000,000.00 300,000,000.00 2016 front end fees 277,512.00 - 277,512.00 2016 Disbursements 71,739,154.00 48,333,334.00 24,650,000.00 144,722,488.00 2017 Disbursements 12,502,761.00 8,391,115.00 4,279,469.00 25,173,345.00 2018 Disbursements 22,424,018.39 15,049,677.34 7,675,335.27 45,149,031.00 2019 Disbursements 27,243,111.98 18,283,968.00 9,324,823.68 54,851,903.66 2020 Disbursements 14,813,393.26 9,941,874.32 5,070,354.76 29,825,622.34 Total 148,999,950.63 99,999,968.66 50,999,982.71 299,999,902.00 4 Ministry of Investment (Mel) Amman - Jordan Notes to the financial statement /Final Accounts for the Year Ended December 31, 2021 The total disbursements out of the proceeds of the additional finance of USD $100,000,000 as follow: Year IDA Total 2020 Disbursements 25,000,000 25,000,000 2021 Disbursements 33,065,655 33,065,655 Total 58,065,655 58,065,655 Source: Ministry of Planning and International Cooperation 3. Basis of Accountin The statements were prepared in accordance with International Public Sector Accounting Standard (IPSAS), under the cash basis of accounting. on this basis revenue is recognized when received rather than when earned, and expense are recognized when paid rather than when incurred. 4. Ministry of Investment/ Current Expenditures 2021 (Jordanian Dinar) Net Increase /Decrease in The program Allocations Actual Allocations Program: Administration and Support Services Activities: - Administrative and Support 3,464,000 3,210,632 253,368 Services Total: 3,464,000 3,210,632 253,368 Total Current Expenditures 3,464,000 3,210,632 253,368 5. Ministry of Investment / Capital Expenditures 2021 (Jordanian Dinar) Net Increase/Decrease in The program Allocations Actual Allocations Program: Administration and Support Services Projects: - Developing the investment 250,000 186,167 63,833 environment 25,0 18,6 63,833 Total: 250,000 186,167 63,833 Program: Export promotion Projects: - Investment promotion 219,000 154,609 64,391 - Exhibitions and export promotion 1,259,000 1,026,103 232,897 Total: 1,478,000 1,180,712 297,288 Total Capital Expenditures 1,728,000 1,366,879 361,121 5 AUDET BUREAU Manaement Letter To: H.E. Minister of Planning and International Cooperation (MOPIC) The subject: the Financial Statements/Final Accounts of Ministry of Investment. As we are the auditors of the Financial Statements/Final Accounts of Ministry of Investment Entity under the World Bank Loan Agreement No. 8651-JO, and International Development Association Financing Agreement No. 5909-JO, and No. 66450-JO (Improve Economic Opportunities for Jordanians and Syrian Refugees Program): * We have audited the Financial Statements/Final Accounts of both above mentioned Ministries for the year ended December 31, 2021. * We were able to obtain reasonable assurance about whether the Financial Statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors" report that includes our opinion. * Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISSAs will always detect a material misstatement when it exists. * As part of an audit in accordance with ISSAls, we exercised professional judgment and maintain professional skepticism throughout the audit. * We have evaluated the overall presentation, structure and content of the Financial Statements, including the disclosures, and whether the Financial Statements represent the underlying transactions and events in a manner that achieves fair presentation. President of the Audit ureau Asem Haddad CPA, JCPA, A Amman-Jordan May 30, 202 2 (P4R) Improve Economic Opportunities for Jordanians and Syrian Refugees Jordan Standards and Metrology Organization. Amman - Jordan Financial Statements, Auditor's Renort For the Year Ended December 31, 2021 Table of Contents Page Independent Auditor's (Audit Bureau) Report 1 -2 Statement of Cash Receipts and Expenditures 3 Notes to Financial Statement 4-6 A U D1 IT B URFAU Independent Auditor's Report To: H.E. the Minister of Planning and International Cooperation Amman - Jordan Opinion We have audited the Financial Statement of the Final Accounts of the Jordan Standards and Metrology Organization, which comprise the Statement of Cash Receipts and Expenditures for the year ended at December 31, 2021, and the Notes to the Statement, including a summary of significant accounting policies. in our opinion, the accompanying Financial Statements present fairly, in all material respects, the cash receipts and expenditures for the year ended at December 31, 2021, and of its financial performance for the year then ended in accordance with cash basis. Basis for Opinion We conducted our audit in accordance with International Standards of Supreme Audit Institutions (ISSAls). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Organization in accordance with our Code of Ethics together with the ethical requirements that are relevant to our audit of the financial statements, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Responsibilities of Management and Those Charged with Governance for the Financial Statements Management is responsible for the preparation and fair presentation of the Organization Financial Statements in accordance with cash basis, and for such internal control as management determines is necessary to enable the preparation of Financial Statements that are free from material misstatement, whether due to fraud or error. In preparing the Financial Statements, management is responsible for assessing Organization's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting. Those charged with governance are responsible for overseeing the Organization's financial reporting process. Auditors' Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the Financial Statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor" report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISSAs will always detect a material misstatement when it exists- Misstatements can arise from fraud or error and are considered material if, individually or taken together (in the aggregate), they could reasonably be expected to influence the economic decisions of users taken on the basis of these Financial Statements. As part of an audit in accordance with ISSAls, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: 1 AUDIT BUR FAU Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. * Obtain an understanding of internal control relevant to the audit 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 Company's internal control. * Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. * Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Organization's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors" report to the related disclosures in the Financial Statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors" report. However, future events or conditions may cause the Organization to cease to continue as a going concern. * Evaluate the overall presentation, structure and content of the Financial Statements, including the disclosures, and whether the Financial Statements represent the underlying transactions and events in a manner that achieves fair presentation. * We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Report on Other Legal and Regulatory Requirements The Organization has proper accounting records, which are, in all material respects, consistent with the accompanying financial statements. President of the Audit Bureau Asem Haddad CPA, JCPA, Amman-Jordan May 30,2022 2 Jordan Standards and Metrology Organization Amman - Jordan Statement of Cash Receipts and Expenditures/Final Accounts for the Year Ended December 31, 2021 (Jordanian Dinar) Cash Receipts: Note Actual 2021 Transfers from 6,428,195 Treasury (MOF) (Budget Allocations) Expenditure: Net Increase/(Decrease) allocations Actual in Allocations 2021 2021 2021 Total Current 3 6,180,000 6,122,062 57,938 Expenditures Total Capital 4 324,000 306,133 17,867 Expenditures Total Expenditures 6,504,000 6,428,195 75,805 The accompanying notes are an integral part ofthese Project Financial Statements and to be read therewith. 3 Jordan Standards and Metrology Organization Amman - Jordan Notes to the financial statement /Final Accounts for the Year Ended December 31, 2021 1. Background: - On october9, 2016 The Government of the Hashemite Kingdom of Jordan (Recipient/Borrower) has signed a financing agreement with the International Development Association(Association) under the Program for Results(P4R); to improve economic opportunities for Jordanians and Syrian refugees (as a part of Jordan Compact Program), by amount of Two Hundred Million United States Dollars (USD $200,000,000). - For the same purpose, The Borrower has signed a loan agreement with the International Bank for Reconstruction and Development (Bank) to obtain a credit amount of one Hundred Million Dollars (USD $100,000,000). - For the same purpose, The Borrower has signed additional finance with International Development Association (IDA), amount of (USD $100,000,000). - The program consists of the following activities: Part A. Improving Labor Market: Carrying out a program of activities aimed at improving the access of Jordanians and Syrian refugees to the labor market in Jordan though, inter alia: (1) implementing required reforms for the issuance of work permits to Syrian refugees and legalizing their work; (2) disclosing reports on selected environmental and social conditions at the factory level. Part B. Improving the Investment Climate Carrying out reforms to improve the business environment in the recipient territory, through inter alia (1) institutionalizing business reforms, (2) creating systems to identify required reforms and appropriate implementation tools, (3) ensuring the private sector involvement in dialogue and processing of reforms, and (4) facilitating the establishment and functioning of SMEs and home- based enterprises. Part C. Increasing Investment Promotion Carrying out a program of activities aimed at encouraging investors to develop enterprises in the recipient territory though, inter alia: (1) facilitating access to information and sites visits, and (2) strengthening the investment promotion capacity of Jordan Investment Commission (JIC). 2. Disbursements of the Loans: The total disbursements out of the proceeds of the loans agreements as follow: (USD) Year IBRD IDA GCFF/TF Total 149,000,000.00 100,000,000.00 51,000,000.00 300,000,000.00 2016 front end fees 277,512.00 - - 277,512.00 2016 Disbursements 71,739,154.00 48,333,334.00 24,650,000.00 144,722,488.00 2017 Disbursements 12,502,761.00 8,391,115.00 4,279,469.00 25,173,345.00 2018 Disbursements 22,424,018.39 15,049,677.34 7,675,335.27 45,149,031.00 2019 Disbursements 27,243,111.98 18,283,968.00 9,324,823.68 54,851,903.66 2020 Disbursements 14,813,393.26 9,941,874.32 5,070,354.76 29,825,622.34 Total 148,999,950.63 99,999,96.66 50,999,982.71 299,999,902.00 4 Jordan Standards and Metrology Organization Amman - Jordan Notes to the financial statement /Final Accounts for the Year Ended December 31,2021 The total disbursements out of the proceeds of the additional finance of USD $ 100,000,000 as follow: Year IDA Total 2020 Disbursements 25,000,000 25,000,000 2021 Disbursements 33,065,655 33,065,655 Total 58,065,655 58,065,655 Source: Ministry of Planning and International Cooperation 3. Basis of Accounting The statements were prepared in accordance with International Public Sector Accounting Standard (IPSAS), under the cash basis of accounting. on this basis revenue is recognized when received rather than when earned, and expense are recognized when paid rather than when incurred. 4. Jordan Standards and Metrology Organization/ Current Expenditurcs (Jordanian Dinar) Program Net allocations Actual Increase/(Decrease) in Allocations Program (1): Administration and Support Services Activities: - - Administrative and Support Services 1,683,590 1,678,617 4,973 Total: 1 ,683,590 1,678,617 4,973 Program (2): Alignment with International Practices and Agreements Activities: - - Harmonizing quality systems with 1,531,980 1,499,397 32,583 international practices Total: 1,531,980 1,499,397 32,583 Program (3): Markets Oversight Activities: - - Enhance the quality of products in 2,964,430 2,944,048 20,382 markets Total: 2,964,430 2,944,048 20,382 Total Current Expenditures 6,180,000 6,122,062 57,938 5. Jordan Standards and Metrolory Organization /Capital Expenditures (Jordanian Dinar) Program Net Actual Increase/(Decrease) allocations in Allocations Program (1): Administration and Support Services Projects: - - Electronic connectivity of the Organization 47,000 39,226 7,774 Total: 47,000 39,226 7,774 Program (2): Alignment with International Practices and Agreements Projects: - - Sustaining and Developing the Organizations 53,000 47,795 5,205 Labs Total: 53,000 47,795 5,205 Program (3): Markets Oversight Projects: - 5 Jordan Standards and Metrology Organization Amman - Jordan Notes to the financial statement /Final Accounts for the Year Ended December 31, 2021 - Markets Control Program Administration 159,000 159,000 Project - Establishing and equipping metrology 65,000 60,112 4,888 verification laboratories Total: 224,000 [ 219,112 4,888 Total Capital Expenditures 324,000 306,133 17,867 6 AU1T SUREAU Manaement Letter To: H.E. Minister of Planning and International Cooperation (MOPIC) The subject: the Financial Statements/Final Accounts of the Jordan Standards and Metrology Organization. As we are the auditors of the Financial Statements/Final Accounts of the Jordan Standards and Metrology Organization Entity under the World Bank Loan Agreement No. 8651-JO, and International Development Association Financing Agreement No. 5909-JO, and No. 66450-JO (Improve Economic Opportunities for Jordanians and Syrian Refugees Program): * We have audited the Financial Statements/Final Accounts of both above mentioned Ministries for the year ended December 31, 2021. * We were able to obtain reasonable assurance about whether the Financial Statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor" report that includes our opinion. * Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISSAs will always detect a material misstatement when it exists. * As part of an audit in accordance with ISSAIs, we exercised professional judgment and maintain professional skepticism throughout the audit. * We have evaluated the overall presentation, structure and content of the Financial Statements, including the disclosures, and whether the Financial Statements represent the underlying transactions and events in a manner that achieves fair presentation. President of the Audit Bureau Asem Haddad CPA, JCPA, Amman-Jordan May 30, 2022 r- z3&7