D1 ARMENIAN TERRITORIAL DEVELOPMENT FUND FINANCIAL STATEMENTS AND INDEPENDENT AUDITOR'S REPORT for the year ended 31 December 2015 [ YEREVAN May 2016 TABLE OF CONTENT Page THE BOARD OF THE ASIF.... ...........................................3 INDEPENDENT AUDITOR'S REPORT.4 STATEMENT OF FINANCIAL POSITION .....................................6 STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME.................. 7 STATEMENT OF CHANGES IN EQUITY ..................8............8 STATEMENT OF CASH FLOWS ...........................................9 NOTES TO THE FINANCIAL STATEMENTS ..........................................10 , Armenian Terriorial Development Fund Finanrcial Statemenis for the Year ended 31 Dccembher 2015 THE BOARD The Chairman Hovik Abrahamyan Prime Minister of the Republic of Armenia Members Davit Loqyan Minister of Territorial Administration and Development of the Republic of Armenia Gagik Khachatryan Minister of Finance of the Republic of Armenia Narek Sargsyan Minister of Urban Development of the Republic of Armenia Artem Asatryan Minister of Labor and Social Affairs of the Republic of Armenia Levon Mkrtchyan Minister of Education and Science of the Republic of Armenia Artsvik Minasyan Minister of Economy of the Republic of Armenia Executive Director of representation in Armenia of charitable Jirayr Markosyan organization "Aznavour pour I'Armenie" Ara Vardanyan Executive Director of All-Armenian Fund Levon Karaqashyan Representative of the NGO "Vardanants Azbetner" (Knights of Vardan), USA Hovik Yeordekyan Head of AGBU Armenian Residence Armenian Territorial Development Fund rinancia/Siatemens Jor the year ended 31 December 2015 3 "UOU-IuwS" Uain "SOS-AUDIT" LTD INDEPENDENT AUDITOR'S REPORT On the financial statements ofArmenian Social Investment Fund for the year ended 31 December 2015 To the Management of the Armenian Territorial Development Fund We have audited the accompanying financial statements of the Armenian Territorial Development Fund (the ATDF) which comprise the statement of financial position as at 31 December 2015, the statement of profit or loss and other comprehensive income, statement of changes in equity and statement of cash flows for the year then ended and a summary of significant accounting policies and other explanatory notes. Management's Responsibility for the Financial Statements The ATDF's Management is responsible for the preparation and fair presentation of these financial statements in accordance with International Financial Reporting Standards, as issued by the International Accounting Standards Board (IASB) within the International Federation of Accountants (IFAC), and for such internal control as management determines is necessary to enable the preparation of special purpose financial statements that are free from material misstatements, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing as issued by International Auditing and Assurance Standards Board (IAASB) within the IFAC. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain reasonable audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment including the assessment of the risk of material misstatement of the financial statements, whether due to fraud or error. In making those assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. 91; p. bp6wuG 0037, U. SSqptuGitu 38/55; :bn.' (+37410) 201151; bwSu'(+37410) 201150 ttL-Onumn' sosaudit@web.am, sosaudit@yandex.ru aSnti0PpuG* 0130; h/h 241061006176 38/55 A. Tigranyan, 0037 Yerevan, RA; Tel.: (+37410) 201151; Fax:(+37410) 201150 E-mail: sosaudlt@web.am, sosaudit@yandex.ru 'Unibank" CJSC; CA241061006276 "UOU-IIL11S" U'11Q "SOS-AUDIT" LTD We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Opinion In our opinion the accompanying financial statements present fairly in all material respects the financial position of the Armenian Territorial Development Fund as of 31 December 2015, and its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards. "SOS-Audit" LLC 31 May 2016 nvel Gh yan One Khachatryan, FCCA a* ector Auditor RA; p. bpLw0 0037, U. Sbqpwjui0 38/55; lbn.' (+37410) 201151; 3Lu'(+37410) 201150 1L-4inum' sosaudit@web.am, sosaudit@yandex.ru aSnL0lpwLp DP; h/h 241061006276 38155 A. Tigranyan, 0037 Yerevan, RA: Tel.: (+37410) 201151; Fax(+37410) 201150 E-mail: sosaudit@web.am, sosaudit@yandex.ru "Unibank" CJSC; CA 241061006276 STATEMENT OF FINANCIAL POSITION Armenian Territorial Development Fund As at 31 December 2015 Note As at 31.12.2015 As at 31.12.2014 USD USD ASSETS Non-current assets Property and equipment 3 41,461 21,188 Funds receivable 4 130,747,124 250,145 Total non-current assets 130,788,585 271,333 Current assets Advances 5 384,803 44,866 Cash 6 22,452,045 1,067,006 Total current assets 22,836,848 1,111,872 TOTAL ASSETS 153,625,433 1,383,205 LIABILITIES AND EQUITY Equity Founders' contribution 7 151,631 151,631 Accumulated deficit (177,877) (209,395) Total equity (26,246) (57,764) Non-current liabilities Government grants 8 153,535,063 1,120,993 Total non-current liabilities 153,535,063 1,120,993 Current liabilities Accounts payable 9 116,617 319,976 Total current liabilities 116,617 319,976 TOTAL LIABILITIES AND EQUITY 153,625,433 1,383,205 The financial statements were approved by the management of the Armenian Social Investment Fund on 31 May 2016 and signed on its behalf The accompanying notes form an integral part ofthesefinancial statements. Levon Dulyan Finance and Administrative Director [ = Armenian Territorial Development Fund FinancialStatementsfor the Year ended 31 December 2015 6 STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME Armenian Territorial Development Fund For the year ended 31 December 2015 Year ended Vear ended 31.12.2015 31.12.2014 Note USD USD Cost of the Projects 10 (2,030,537) (4,858,490) Income from Grants 8 2,030,537 4,858,490 Other income/(expense), net 35,854 19,157 Exchange gainl(loss), net (4,336) (50,483) Results of the year before income tax 31,518 (31,326) Income tax - - Results of the year 31,518 (31,326) L Other comprehensive income - - Comprehensive result for the year 31,518 (31,326) .L I. Lj F Armenian Territorial Development Fund Financial Statements for the year ended 31 December 20/5 STATEMENT OF CHANGES IN EQUITY Armenian Territorial Development Fund For the year ended 31 December 2015 Founders Accumulated Total contribution deficit USD USD USD Balance as at 1 January 2014 151,631 (178,069) (26,438) Results of the year - (31,326) (31,326) Balance as at 31 December 2014 151,631 (209,395) (57,764) Results of the year - 31,518 31,518 Balance as at 31 December 2015 151,631 (177,877) (26,246) Li EL Armenian Territorial Development Fund Financial Statements for die year emded 31 Decemnber 20/S8 STATEMENT OF CASH FLOWS Armenian Territorial Development Fund For the year ended 31 December 2015 - Year ended Vear ended 31.12.2015 31.12.2014 USD USD Operating cash flows Funds received/(refunded) ASIF III (41,132) 4,689,006 SDC Grant 234,589 68,851 SILD 1,782,415 - SSIP 21,949,766 USAID Grant 22,000 - K 23,947,638 4,757,857 Expenditures on Projects ASIF 111 (913,431) (4,736,951) L SDC Grant (252,006) (36,664) SILD (1,384,497) L SSIP USAID Grant (6,691) - (2,556,625) (4,773,615) Other operating cash flows (net) 2,026 21,078 Total Operating cash flows 21,393,039 5,320 Exchange difference (8,000) (97,889) Net cash flows 21,385,039 (92,569) Opening cash balance 1,067,006 1,159,575 Closing cash balance 22,452,045 1,067,006 L Armenian Teiritorial Development rund Financial Sitemenisfor theyear ended 31 December 2015 NOTES TO THE FINANCIAL STATEMENTS Armenian Territorial Development Fund For the year ended 31 December 2015 1. Background 1.1 The foundation and its objectives The Armenian Territorial Development Fund (ATDF) is renamed from Armenian Social Investment Fund (ASIF). The ATDF operates based on the new Charter since 4 August 2015, and continues ordinary activities of the ASIF. So the financial statements for the year ended 31 Dec 2015 are natural furtherance of the ASIF financial statements of the previous periods. The ASIF has been established by a Decree N 162 dated I 1.04.2000 of the Government of the Republic of Armenia, the sole founder, as an autonomous non-profit agency to assist in the rehabilitation of small-scale infrastructure through community initiated and demand-based activities. It was registered in accordance with resolution N 988 of the Ministry of Justice of the Republic of Armenia dated on 13 September 2000. The ASIF registered address is: 31 Ulnetsu Street, Yerevan, 0037, Republic of Armenia. The ATDF implements projects related to: * welfare development of population through improving quality and accessibly of social and economic infrastructure and public services, employment, investment activity, * Institutional and financial strengthening of regions of the Republic of Armenia. The projects financed by the Government of the Republic of Armenia through funds received from international donors, the largest creditor being International Development Association (the IDA), International Bank of Reconstruction and Development (the IBRD) and Asian Development Bank (ADB). The Projects co-financing was provided by: * Government of the Republic of Armenia, * Local Communities, * Other sponsors. 1.2 The implemented projects The major projects implemented by ASIF since its incorporation are ASIF I, ASIF II and ASIF III projects with objective to raise the living standards of the poor and vulnerable groups in the Republic of Armenia through: a) improving the quality and access, and increasing the coverage of community infrastructure and services in poor communities, and for the most vulnerable groups in response to critical emerging needs; and b) promoting complementary institutional capacity building at the community and municipal level so as to improve the quality and sustainability of service delivery and municipal investments, increase accountability, and enhance greater stakeholder empowerment at local level. In year ended 31.12.2015, the ATDF implemented the following projects: Armertian Territorial Development Fund Financial Statements jr the year ended 31 December 2015 10 * "ASIF III" - "Armenian Social Investment Fund III Project", financed by IDA Credit 4238-AM dated 01.11.2006, IDA Credit 4548-AM dated 26.02.2009, IBRD Credit 7847- AM dated 05.05.2010, IDA Credit 5071-AM dated 24.02.2012 with total credit budget of 51,884,079 USD equivalent. The AISF Ill project was completed on 31.07.2015. * "SDC Grant" - "Improvement of the Local Self-Governance System of Armenia" project, finance by Contract No. 81026865 dated 04.08.2014 between the Swiss Federal Department of Foreign Affairs (the FDFA) and the ASIF, in the amount of 287,850 CHF (Swiss Franc). The objective of the project is to improve abilities of municipalities to access capital investments for projects that facilitate cross-municipal cooperation and merging of municipalities in Republic of Armenia. The SDC Grant project was completed as at 31 December 2015. * "SILD" - "Social Investment and Local Development Project", financed by the Loan Agreement IBRD Loan Number 8483-AM dated 8 April 2015 between the Republic of Armenia and the IBRD, in the amount of 30,000,000 USD. The objective of the project is to improve quality and use of, and access to, community and inter-community infrastructure. The Closing date for the Loan Number 8483-AM financing is set on 30 June 2020. * "SSIP" - ((Seismic Safety Improvement Program" project, financed by Loan Agreement ADB Loan 3284-ARM dated 19 October 2015 between the ADB and the Republic of Armenia, in the amount of 63,259,000 Special Drawing Rights (SDR), from which 3,503,000 SDR is allocated for covering interest charge during the SSIP implementation and withdrawn directly by the ADB, and 59,756,000 SDR is allocated to the ATDF for the implementation of the project. The objective of the project is to build earthquake- resilient schools and improve ability to respond to natural disasters. The closing date of the SSIP project is set on 31 May 2021. * "USAID Grant" - "Territorial Management Reform" project, financed by Implementation Letter dated 10 August 2015 between USA International Development Agency (USAID) and ATDF, in the amount of 8,600,000 USD. The objective of the project is funding inter-community projects in 14 pilot consolidated communities. The closing date of the project is set on 10 August 2020. Armenian Territorial Development Fimd Financial Statements fir dhe Year ended 31 December 2015 II 2. Summary of significant accounting policies 21 Bases of preparation These financial statements are prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB) within the International Federation of Accountants (IFAC). The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the periods presented. The financial statements consist of: - Statement of financial position, - Statement of profit and loss and other comprehensive income, - Statement of changes in equity, - Statement of cash flows, - Notes to the financial statements, including significant accounting policies. 2.2 Basis of measurement These financial statements are prepared on the historical cost basis. 2.3 Functional and presentation currency The ATDF's functional currency is the national currency of the Republic of Armenia, Dram (AMD). The presentation currency of these financial statements is United States Dollar (USD). 2.4 Foreign currency transactions Foreign currency is a currency other than the functional currency of the ATDF. Transactions in foreign currencies are translated to functional currency at exchange rates at the dates of the transactions. Settlement rate of foreign currency over functional currency established by the Central Bank of the Republic of Armenia is taken as the exchange rate. The ATDF's accounts are maintained and transactions are made in USD, Swiss Franc (CHF) and Armenian Drams (AMD). Transactions denominated in local currency are translated into USD as follows: - Contributions of the Republic of Armenia expressed in AMD are presented in USD at the official exchange rate defined by the Central Bank of Armenia at the date of transfer. - Payments to contractors and suppliers expressed in AMD are presented in USD at the exchange rates defined by the CBA at the date of payment. The exchange rate defined by the CBA as at 31 December 2014 is: USD I = 471.46 AMD, The exchange rate defined by the CBA as at 31 December 2015 is: USD I = 482.50 AMD. The exchange rate defined by the CBA as at 31 December 2014 is: CHF I = 478.54 AMD, The exchange rate defined by the CBA as at 31 December 2015 is: CHF I = 488.14 AMD. 2.5 Government grants Grants from the government in return for past or future compliance with certain conditions relating to operating activities of ATDF are recognized at their fair value where there is reasonable assurance that: a) the ATDF will comply with the conditions attached to them; and Armenian Territorial Development Fmnd FinancialStatements for the year ended 31 December 2015 12 b) the grants will be received. Government grants relating to the purchase of property and equipment are deferred and are recognized in the income statement on a straight line basis over the expected lives of the related assets. Grants relating to costs are deferred and recognized in the income statement over the period necessary to match them with the costs that they are intended to compensate. S2.6 Property and equipment Property and equipment are stated at cost, less accumulated depreciation and provision for impairment, where required. Costs of minor repairs and maintenance are expensed when incurred. Cost of replacing major parts or components of property, plant and equipment items are capitalized and the replaced part is retired. Depreciation is calculated on a straight-line basis in accordance with the following annual depreciation rates: Machinery and equipment 20% Transportation means 20% Operational fixtures 20% 2.7 Cash Cash comprise cash balances and bank accounts balances. 2.8 Advances Advances are carried at cost less provision for impairment. If there is an indication that the 17 assets, goods or services relating to an advance will not be received, the carrying value of the advance is written down accordingly and a corresponding impairment loss is recognised in the income statement. L [ Armenian Territorial Development Fund SFinancialSatementsfir he Year ended 31 Decenher 2015 13 3. Property and equipment Property, plant and equipment represent assets acquired in the scope of the implemented project for use at ATDF. Projects ASIF III SDC SILD SSIP USAID Total 1 Grant Grant USD USD USD USD USD USD Cost As of I January 2014 330,209 - - - - 330,209 Acquisitions 1,993 - - - - 1,993 As of 31 December 2014 332,202 - - - - 332,202 Acquisitions - 16,510 10,229 - 5,359 32,098 As of 31 December 2015 332,202 16,510 10,229 - 5,359 364,300 Accumulated depreciation As of I January 2014 299,585 - - - - 299,585 Annual charges 11,429 - - - - 11,429 As of 31 December 2014 311,014 - - - - 311,014 Annual charges 5,380 3,300 2,063 - 1,082 11,825 As of 31 December 2015 316,394 3,300 2,063 - 1,082 322,839 Carrying value As or3l December 2014 21,188 - - - - 21,188 As of 31 December 2015 15,808 13,210 8,166 - 4,277 41,461 As at 31.12.2015 the property and equipment with cost of 304,282 USD are fully depreciated (31.12.2014: 299,402 USD). 4. Funds receivable It represents funds receivable for implementation of the projects by the ATDF: As at As at 31.12.2015 31.12.2014 Project Note USD USD ASIF III 4.1 - 8,723 SDC Grant 4.2 15,165 241,422 SILD 4.3 41,217,585 - SSIP 4.4 80,150,234 USAID 4.5 9,364,140 - 130,747,124 250,145 4.1. ASIF III funding As at 31.12.2015, the financing under the IDA 4238-AM (Closing date: 31.03.2012), IDA 4548- AM (Closing date: 30.06.2011), IBRD 7847-AM (Closing date 31.10.2012), and IDA Credit 5071-AM (Closing date 31.03.2015) were completed. There were no balances receivable or refundable amounts related to those credits as at reporting date. Armenian Territorial Development Frmtnd FinancialStatements Jr dre year ended 31 Decenter 21/5 14 L r I 4.2 SDC Grant FDFA Grant No. 81026865 Total USD USD Receivable as at 01.01.2014 - . Granted 303,000 303,000 Received/refund (68,851) (68,851) Revaluation (CHF/USD) 7,273 7,273 Receivable as at 31.12.2014 241,422 241,422 Granted - - Received/refund (234,589) (234,589) Revaluation (CHF/USD) 8,332 8,332 Receivable as at 31.12.2015 (a) 15,165 15,165 (a) The balance represents the SDC Grant project expenditures incurred by other funds of the ATDF in 2015, and reimbursed wholly by the FDFA Grant No. 81026865 on 1 April 2016. 4.3 SILD RA IBRD Government Community 8483-AM cofinaning Contribution Donors Total USD USD USD USD USD Receivable as at - - - 31.12.2014 - - Granted 30,000,000 11,011,000 1,915,000 74,000 43,000,000 Received/refund (945.219) (531,488) (232,424) (73,284) (1,782,415) Receivable as at 31.12.2015 29,054,781 10,479,512 1,682,576 716 41,217,585 4.4 SSIP ADB Loan RA Government 3284-ARM cofinaning Total USD USD USD Receivable as at 31.12.2014 - - - Granted 83,600,000 18,500,000 102,100,000 Received/refund (21,949,766) - (21,949,766) Receivable as at 31.12.2015 61,650,234 18,500,000 80,150,234 4.5 USAID Grant USAID Community Grant Contribution Total USD USD USD Receivable as at 31.12.2014 - - - Granted 8,600,000 786,140 9,386,140 Received/refund (22,000) - (22,000) Receivable as at 31.12.2015 8,578,000 786,140 9,364,140 Armenian Territorial Development Fund Financial Statements fr the year ended 31 December 2015 1S 5. Advances As at As at 31.12.2015 31.12.2014 Project USD USD ASIF III (b) 4,953 44,866 SILD 379,850 - 384,803 44,866 (a) The advances are mainly result from prepayments to contractors up to 20% on construction contracts secured with relevant bank guarantees. (b) The balance represents refundable amounts on Civil work defects. 6. Cash Currency As at As at 31.12.2015 31.12.2014 USD USD ASIF III Designated account (IDA 5071-AM) USD - 630,538 Current accounts (a) AMD 90,970 417,860 Cash on hand AMD - 114 90,970 1,048,512 SDC Grant SDC Grant CHF - 13,808 - 13,808 SILD Designated account (IBRD 8283-AM) USD 52,841 - Government of RoA AMD 71,657 - Community contribution account AMD 196,246 - Sponsors contribution account AMD 72,671 - Cash on hand AMD 87 - 393,502 - SSIP Designated account (ADB 3284-ARM) USD 21,949,766 - 21,949,766 - USAID Grant Grant account USD 15,309 - 15,309 - Other accounts AMD 2,498 4,686 22,452,045 1,067,006 (a) Current account of ASIF III mostly consist of Community Contribution funds balances (35,911 USD) to cover ASIF III Civil works' retention (Note 9) and accrued interest (55,059 USD). 7. Founders' contribution The Government of the Republic of Armenia is the sole founder of ATDF. The Founder contributed Property and Equipment with the valued amount of USD 151,631. Those assets were fully depreciated as at 31 December 2006. Armenian Territorial Development Fund Financial Statementsjr the Year ended 31 Decenher 2015 16 8. Government grants Mostly relates to received grants for implementation of projects by ATDF. For the year ended 31 Dec 2015 ASIF III SDC SILD SSIP USAID Total USD Grant USD USD Grant USD USD USD Opening balance 865,763 255,230 - - - 1,120,993 Grants received - - 43,000,000 102,100,000 9,386,140 154,486,140 Other increase/(decrease) (49,865) - - - - (49,865) Revaluation - 8,332 - - - 8,332 Income corresponding to compensated costs (786,400) (238,797) (1,002,927) - (2,413) (2,030,537) Closing balance 29,498 24,765 41,997,073 102,100,000 9,383,727 153,535,063 r For the year ended 31 Dec 2014 ASIF III SDC Grant Total LiUSD USD USD Opening balance 5,155,841 - 5,155,841 Grants received - 303,000 303,000 Other increase/(decrease) 568,886 ( 550,507 Revaluation (37,138) 7,273 (29,865) . - Income corresponding to compensated costs (4,821,826) (6 4 (4,858,490) Closing balance 865,763 1 255,230 11,120,993 9. Accounts payable Asat A t 31.12.2015 31.12.2014 USD USD ASIF III Works (a) 47,957 258,080 Payables on interest accrued 62,199 61,891 110,156 319,976 SILD (a) 6,446 ( Other paynbles 15 paya 116,617 319,976 (a) Retentions of 5% on ASIF III project and 2.5% on SILD project are held from the completed service invoice for up to one year as guaranty for the quality of the work. Armenian Territorial Development Fund Financial Statementsor theYear ended 31 December 2015 17 10. Cost of the Projects Year ended 31 Dec 2015 ASIF III SDC SILD SSIP USAID Total USD Grant USD USD Grant USD USD USD Works 510,996 - 128,924 - - 639,920 Goods 217,123 - - - - 217,123 Consultants' services and Training 34,326 235,497 210,066 - 1,331 481,220 Operating costs 18,575 - 586,874 - - 605,449 Depreciation of PPE 5,380 3,300 2,063 - 1,082 11,825 Front-end fee - - 75,000 - - 75,000 Total 786,400 238,797 1,002,927 - 2,413 2,030,537 Year ended 31 Dec 2014 SDC ASIF III Grant Total USD USD USD .J Works 3,681,276 - 3,681,276 Goods 334,167 - 334,167 Consultants' services and Training 210,347 36.664 247,011 Operating costs 584,607 - 584,607 Depreciation of PPE 11,429 - 1 1,429 Total 4,821,826 36,664 4,858,490 Armenian Territorial Development Fund Financial Statements for theY ear ended 31 December 2015 1y 11. Cash Flows For the year ended 31 Dec 2015 ASIF III SDC Grant SILD SSIP USAID ATDF Total Grant other I USD USD USD USD USD USD USD Funds receivedl/ __ ______ __ _____ (returned) (41,132) 234,589 1,782,415 21,949,766 22,000 - 23,947,638 Loan/Credit/Grant (36,762) 234,589 945,219 21,949,766 22,000 - 23.114,812 RA Government 8,596 - 531,488 - - - 540,084 Community Contributions (12,966) - 232,424 - - - 219,458 Other Sponsors - - 73,284 - - - 73,284 Expenditures on Projects (913,097) (252,006) (1,384,497) - (6,691) (334) (2,556,625) Works (643,071) - (502,328) - - - (1,145,399) Goods (217,123) (16,510) (8,975) - (5,360) - (247,968) Consultant Services and Training (34,328) (235,496) (210,065) - (1,331) - (481,220) Operating Costs (18,575) - (588,129) - - (334) (607,038) Front-end fee - - (75,000) - - - (75,000) Other operating cash flows (net) 2,101 1,749 17 - - (1,841) 2,026 Foreign currency Sgain/(loss) (5,415) 1,860 (4,433) - - (12) (8,000) Net cash result (957,543) (13,808) 393,502 21,949,766 15,309 (2,187) 21,385,039 Opening cash balance 1,048,513 13,808 - - - 4,685 1,067,006 Closing cash balance 90,970 - 393,502 21,949,766 15,309 2,498 22,452,045 Armenian Territorial Development Fund Financial Statements fin the year ended 31 December 20/5 19 For the year ended 31 Dec 2014 ASIF III SDC Grant ATDF Total other USD USD USD USD Funds received/ (returned) 4,689,006 68,851 - 4,757,857 Loan/Credit/Grant 3,648,663 68,851 - 3,717,514 RA Government 791,649 - - 791,649 Community Contributions 116,652 - - 116,652 Other Sponsors 132,042 - - 132,042 Expenditures on Projects (4,734,720) (36,664) (2,231) (4,773,615) Works (3,604,072) - - (3,604,072) Goods (336,160) - - (336,160) Consultant Services and Training (209,880) (36,664) (1,915) (248,459) Operating Costs (584,608) - (316) (584,924) Other operating cash flows (net) 21,078 - - 21,078 Foreign currency gain/(loss) (78,727) (18,379) (783) (97,889) Net cash result (103,363) 13,808 (3,014) (92,569) Opening cash balance 1,151,876 - 7,699 1,159,575 Closing cash balance 1,048,513 13,808 4,685 1,067,006 12. Taxes Applicable taxes are paid in accordance with tax regulations of the Republic of Armenia. Income tax rate in the Republic of Armenia is 20%. 13. Litigations No claims were received against the ASIF as at reporting date and date of signing these financial statements. Armenian Territorial Development Fund Financial Statements fir the Year ended 31 December 2015 20