“Health Services Improvement Project” Grant No. H8790-TJ, Grant No. TF 014871, Grant No. D070-TJ, Credit No. 5666-TJ The project financial statements for the year ended December 31, 2018 and independent auditors’ report “HEALTH SERVICES IMPROVEMENT PROJECT” GRANT NO. H8790-TJ, GRANT NO. TF 014871, GRANT NO. D070-TJ, CREDIT NO. 5666-TJ TABLE OF CONTENTS Page STATEMENT OF MANAGEMENT’S RESPONSIBILITIES FOR THE PREPARATION AND APPROVAL OF THE PROJECT FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018 2 INDEPENDENT AUDITORS’ REPORT 3-4 THE PROJECT FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018: Summary of funds received and expenditures paid 5 Summary of expenditures paid by project components 6 Notes to the project financial statements 7-22 STATEMENT ОF MANAGEMENT,S RESPONSIBILITIES FOR ТНЕ PREPARATION AND APPROVAL ОF ТНЕ PROJECT FINANCIAL STATEMENTS FOR ТНЕ YEAR ENDED DECEMBER 31, 2018 The following statement, which should Ье геаd in conjunction with the independent auditoгs' гesponsibilities is made with а view to distinguish the respective responsibilities of management and those of the iпdерепdепt auditors in rеlаtiоп to the рrоjесt financial statements of the Рrоjесt "Health sегчiсеs lmprovement Ргоjесt", Grапt No. H8790-TJ, Grапt No. TF 014в71, Grапt No. DO7d-TJ, Сгеdit No. 5666-TJ (the "Project"). Management is responsible fоr the ргераrаtiоп of the ргоjесt financial statements that рrеsепt fairly, iп all material respects, the summary of funds received and expenditures paid and the Summагу of expendituгes paid Ьу рrоjесt components of the Рrоjесt fоr the уеаг ended Dесеmьеr з1, 2018 in ассоrdапсе with lпtеrпаtiопаl Public Sесtоr Accounting Standard "Fiпапсiаl Rерогtiпg Under the Cash Basis of Дссоuпtiпg" (the "lpsAs") issued Ьу the lnternational public Accounting standards Воаrd of the |пtеrпаtiопаl Fеdеrаtiоп of Accountants апd the Wоrld Bank's Fiпапсiаl Management Sесtоr Board's "Guidelines: Аппuаl Fiпапсiаl Rерогtiпg and Auditing fоrWоrld Bank Fiпапсеd Activities" (the "WB Guidelines"). lп рrераriпg the ргоjесt financial statements, management is responsible fоr: . se|ecting suitable accounting policies and applying them consistently; . making judgments and estimates that аrе rеаsопаЬlе and prudent; . Stating whether lPSAS and WB Guidelines have Ьееп followed, subject to апу mаtегiаl dерагturеs disclosed and explained iп the project financial statements; and . рrерагiпg the рrоjесt financial statements оп а going сопсеrп basis, unless it is iпаррrорriаtе to РгеSumе that the Рrоjесt will сопtiпuе its activity fоr the fоrеsееаЬlе futчrе. Management is also responsible fоr: . designing, implementing and maintaining effective and sound system of iпtеrпаl сопtrоt and fоr rечеаliпg risks in system of iпtеrпаl сопtrоl; о maintaining рrореr accounting rесоrds that disc|ose, with rеаsопаЬlе ассчrасу at апу time, the financial position of the Рrоjесt, and which enable them to епsчrе that the project financial statements of the Ргоjесt comply with lPSAS and WB Guidelines; . compliance with laws and regulations of the Republic of Tajikistan, accounting system of the Project and the rеquirеmепts of the Wоrld Bank; . taking such steps as аrе rеаsопаЬlу available to them to safeguard the assets of the Рrоjесt; апd о detecting and рrечепtiпg fraud, еrrоr апd оthеr irгеgчlаritiеs. The project financial statements fоr the уеаr ended DесеmЬег 31,201В wеrе approved and authorized fоr issue оп Мау 3, 2019 Ьу the management of the Рrоjесt. Оп behaIf of the Management: of Health and social Head of Accounting and Reporting Department of the Ministry of Health and Social Protection Мау 3, 2019 ,ryб fu, А Й, Repub|ic of Tajikistan Dushanbe, the Republic of Tajikistan 65 Stefan cel Mare şi Sfânt Blvd 5th Floor, Office 507 2001 Chisinau Moldova T: +373 22 233003 F: +373 22 234044 info@bakertilly.md www.bakertilly.md INDEPENDENT AUDITORS’ REPORT To the management of the Project “Health Services Improvement Project” under the Ministry of Health and Social Protection of the Republic of Tajikistan and the State Committee on Investments and Government Property Management of the Republic of Tajikistan: Report on the project financial statements Opinion [1] We have audited the project financial statements of the Project “Health Services Improvement Project” (the “Project”), which comprise the summary of funds received and expenditures paid and the summary of expenditures paid by project components for the year ended December 31, 2018, and a summary of significant accounting policies and other explanatory information (the “project financial statements”). [2] In our opinion, the accompanying project financial statements present fairly, in all material respects, the summary of funds received and expenditures paid and the summary of expenditures paid by project components of the Project for the year ended December 31, 2018 in accordance with International Public Sector Accounting Standard “Financial Reporting Under the Cash Basis of Accounting” (the “IPSAS”) issued by the International Public Sector Accounting Standards Board of the International Federation of Accountants, and th e World Bank’s Financial Management Sector Board’s “Guidelines: Annual Financial Reporting and Auditing for World Bank Financed Activities” (the “WB Guidelines”). Basis for opinion [3] We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the project financial statements section of our report. We are independent of the Project in accordance with the International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants (IESBA Code) together with the ethical requirements that are relevant to our audit of the project financial statements and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Emphasis of matter [4] Without qualifying our opinion, we draw attention to Note 2 to the project financial statements, which describe the basis of accounting. These project financial statements were prepared for complying with the appropriate World Bank Guidelines and Financing and Grant agreement requirements. Other matter [5] The project financial statements are prepared to assist the Project to comply with the requirements of the World Bank. As a result, the project financial statements may not be suitable for another purpose. ADVISORY  ASSURANCE  TAX ICS Baker Tilly Klitou & Partners SRL trading as Baker Tilly is a member of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities. 3 "HEALTH SERvlcES IMPRoVEMENT PRoJEGT,, GRANT No. H8790_TJ, GRANT No. тF 014871, GRANT No. D070-TJ, cREDlT No.5666-TJ SUMMARY ОF FUNDS RECEIVED AND EXPENDITURES PAID FоR тнЕ YEAR ENDED DECEMBER 3.t,2018 Notes Fоr the уеаr Fоr the уеаr cumulative ended ended DесеmЬеr 31, December 31, 20,18 2017 Opening Ьаlапсе 4 1,417,4з0 964,731 Fчпds received Grant No. H8790-TJ 5 1,722,914 4,013,748 ,13,,l19,856 Grant No. ТF 014871 5 1,084"170 926,745 3,712,600 Grant No. D070-TJ 5 2,355,887 69,600 3,495,087 Credit No. 5666-TJ 5 1,270,646 ,1,40,1,459 2,672,105 contribution of the Gочеrпmепt of the Republic of Tajikistan 5 488,854 256,870 ,l ,132,990 Total funds received 6,922,471 6,668,422 24,132,638 other income 3,086 2,083 26,946 Total rесеiрЪ 6,925,557 6,670,505 24,159,584 Project expenses Реrfоrmапсе Based Fiпапсiпg (РВF) payments, including payments on initial verification 6 3,014,783 ,1,890,350 7,960,839 consultation sегчiсеs 6 599,785 1,066,033 3,596,034 Goods 6 ,1 ,940J72 215,492 4,280,049 Works 6 1,582,420 2,35,1,313 4,574,871 Тrаiпiпgs and workshops 6 67,552 419,395 1,762,6з7 Ореrаtiпg expenses 6 260,499 271,260 1,056,250 Total project expenses 7,465,211 6,213,843 23,230,680 Fоrеigп exchange loss (5,898) 2,099 40,604 Other expenses 3,671 1,864 8,297 Closing Ьаlапсе 4 ________qý9д9э_ ___ц]ZJэq_ ____qýад9э_ Оп behalf of the Management: istry of Health and Social Head of Ассочпtiпg and RepoЁing DepaЁment of the Ministry of Health and Social Protection Мау 3, 2019 Dushanbe, the Republic of Tajikistan 6 of Tajikistan 7-22 fоrm ап integral раrt of the project fiпапсiаl statements, The independent auditors' rероrt iS оп pages 3_4 fu,A,tГ "HEALTH SERvlcES IMPRoVEMENT PRoJEсT,, GRANT No. H8790_TJ, GRANT No. тF 014871, GRANT No. D070_TJ, cREDlT No.5666_TJ SUMMARY ОF EXPENDITURES PAID BY PROJECT COMPONENTS FoR тнЕ YEAR ENDED DECEMBER 31, 2018 Fоr the уеаr Fоr the уеаr cumulative ended ended DесеmЬеr 31, DесеmЬеr 3'l , 201 8 2017 Component l. Регfоrmапсе-Ьаsеd financing 3,283,244 2,570,1з0 9,989,988 Component ll. Primary Health Саrе Strengthening 3,633,767 2,904,700 10,234,989 Component lll. Project management, coordination, mопitоriпg and evaluation 548,200 7з9,013 3,005,703 7,465,211 6,213,843 2з,230,680 On behalf of the Management: /t !"п' /'N / //.. .r9. ,Jr>4/ / l| rl'|/ Y F. Safarov inistry of Health апd Social Head of Accounting and RероЁiпg Department of the Ministry of Health and Social Protection Мау 3, 2019 Dushanbe, the Republic of Tajikistan Dushanbe, the Republic of Tajikistan The notes оп pages 7-22fоrm an integral раrt of the project financial Statements. The independent auditors' rероrt is оп pages 3-4 ffiб Иl.-fllffi' “HEALTH SERVICES IMPROVEMENT PROJECT” GRANT NO. H8790-TJ, GRANT NO. TF 014871, GRANT NO. D070-TJ, CREDIT NO. 5666-TJ NOTES TO THE PROJECT FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018 (in US dollars) 1. GENERAL INFORMATION According to the Agreements between the Republic of Tajikistan and International Development Association (the “IDA”) dated September 20, 2013 and August 7, 2015, the IDA provided a Grant No. H8790-TJ in the amount of 10,000,000 Special Drawing Rights (the “SDR”), a Grant No. D070-TJ in the amount of 3,300,000 Special Drawing Rights and a Credit No. 5666-TJ in the amount of 4,000,000 Special Drawing Rights to the Republic of Tajikistan. In accordance with the Agreement between the Republic of Tajikistan and the Health Results Innovation Trust Fund (the “HRITF”) dated September 20, 2013, the HRITF provided a Grant No. TF 014871 in the amount of 4,800,000 US Dollars to the Republic of Tajikistan. The Grants and the Credit were provided for implementation of the Project “Health Services Improvement Project” (the “Project”). Project purpose The Project Development Objective is to contribute to the improvement of the coverage and quality of basic primary health care services in rural health facilities with particular emphasis on improvement of Maternal and Child Health service quality. The key indicators of achievement of the Project Development Objective are as follows: • Percentage of pregnant women receiving antenatal care four or more times from a skilled health provider; • Contraceptive prevalence rate; • Average Health Facility Quality of Care Score; • Percentage of children under-five with diarrhea treated with any Oral Rehydration Therapy. The Project is to be implemented during 2013-2019, and comprises 3 components: 1. Component I: Performance-based financing; 2. Component II: Primary Health Care Strengthening; 3. Component III: Project management, coordination, monitoring and evaluation. Component I: Performance-based financing (the “PBF”) This component finances implementation of the PBF Scheme for Maternal and Child Health and Non- communicable Disease services, by providing quarterly performance based payment to eligible Primary Health Care (the “PHC”) Facilities based on their performance on a set of criteria agreed upon in writing by the Ministry of Health and Social Protection (the “MoHSP”) and the PHCs. The component also finances PBF Scheme costs of the first level verification and independent verification of the PBF Scheme. Component II: Primary Health Care Strengthening. This component includes the following subcomponents: Subcomponent II.a: Quality improvement: This subcomponent finances training of primary health care doctors and nurses from the districts participating in the PBF Scheme and other selected comparison districts in the six months Family Medicine training program and providing them with continuous medical education on clinical treatment protocols for maternal and child health care and selected non-communicable diseases. 7 Subcomponent II.b: Physical infrastructure improvements This subcomponent finances support of the improvement of primary health are infrastructure in the project districts by providing basic medical equipment and supplies, and performing rehabilitation works for selected primary healthcare facilities. Component III: Project management, coordination and monitoring and evaluation This component ensures Support of the Project implementation and management at the central, regional and district levels including the provision of training and financing incremental operating costs. Project management The Ministry of Health and Social Protection is the authorized body responsible for the preparation and implementation of the Project. The Minister of Health and Social Protection is the Project Director who is responsible for overall project management to ensure that project resources are used as budgeted and that project development objectives will be achieved. Duration of the Project is from September 20, 2013 to December 31, 2019. 2. PRESENTATION OF THE PROJECT FINANCIAL STATEMENTS Basis of preparation These project financial statements have been prepared in accordance with the International Public Sector Accounting Standard (the “IPSAS”) “Financial Reporting under the Cash Basis of Accounting” issued by the Public Sector Committee of the International Federation of Accountants, and incorporate the following principal accounting policies, which have been consistently followed in all material respects and comply with the World Bank’s Financial Management Sector Board’s “Guidelines: Annual Financial Reporting and Auditing for World Bank Financed Activities” (the “WB Guidelines”). Under the cash basis approach income (or expenditure) is recognized when cash is received (or paid) irrespective of when goods or services are received or provided. The Project’s approved budget disclosed by categories of expenses is not publicly available and as such comparison of budget and actual amounts is not presented. These project financial statements consist of: • Summary of funds received and expenditures paid; • Summary of expenditures paid by project components; • Notes to the project financial statements, including short description of main statements of accounting policy and other descriptive notes. The reporting currency of these project financial statements is US dollars (the “USD”). 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Cash basis of accounting The project financial statements are prepared on a cash basis of accounting. The cash basis of accounting recognizes transactions and events only when cash (including cash equivalents) is received or paid by the Project. The project financial statements prepared under the cash basis provide readers with information about the sources of cash raised during the period, the purposes for which cash was used and the cash balances at the reporting date. The measurement focus in the project financial statements is balances of cash and changes therein. 8 Foreign currency Operations in foreign currency initially are counted in functional currency by the official currency exchange rate settled by the conversion rate of the National Bank of Tajikistan (the “NBT”) on a date of operation. Since the beginning of 2018, management of the Project has revised the method of recognition of foreign currency operations in prospectively. Funds received are translated into US dollars at official exchange rate of Special Drawing Rights (the “SDR”) at the date of funds receipt. All payments made in local currency are translated into US dollars at the official exchange rate defined by NBT, at the date of transaction. Monetary assets and liabilities expressed in foreign currency are converted to functional currency at official exchange rate on a date settled by the NBT. All foreign exchange differences resulted from maturity or recounting are included in the summary of funds received and expenditures paid. Non-monetary items are valued according to their historic cost in foreign currency, which are recalculated on rates of the initial operation date. Cash and cash equivalents Cash and cash equivalents include cash on hand and due from banks, which can be converted to the corresponding amount of cash in the short term. Balances of advances paid to employees at the end of the period are also part of closing cash position. Taxes Calculation and payment of personal income tax and social security contributions from income of local staff and consultants is made in accordance with the requirements and rates of the Tax Code of the Republic of Tajikistan and relevant legislation of the Republic of Tajikistan. Project expenses The expenses are recorded in the period when they were actually paid. Sources of funds The funds were provided by the World Bank to the Project by advances, replenishment of designated account or through direct payment to the end supplier of goods and/or services and contribution of the Government of the Republic of Tajikistan. 4. CASH AND CASH EQUIVALENTS Cash and cash equivalents as at December 31, 2018 and 2017 comprise: Source of financing Currency December 31, December 31, 2018 2017 Designated account Grant No. H8790-TJ USD 528,843 860,932 Designated account Grant No. D070-TJ, Credit No. 5666-TJ USD 351,080 510,223 Designated account Grant No. TF014871 USD 12 44,820 Transit account Credit No. 5666-TJ TJS 15 15 Transit account Grant No. H8790-TJ TJS 4 - Transit account Grant No. TF014871 TJS 16 - Tender account TJS 33 620 Advances paid to employees TJS - 820 880,003 1,417,430 9 5. FUNDS RECEIVED The funds received are presented by the following financing methods and sources of financing: For the year ended December 31, 2018 For the year ended December 31, 2017 Grant No. Grant No. Grant No. Credit No. Total Grant No. Grant No. Grant No. Credit No. Total H8790-TJ TF014871 D070-TJ 5666-TJ H8790-TJ TF014871 D070-TJ 5666-TJ Advances - - - 150,000 150,000 - - - 350,000 350,000 Direct payment - - 999,457 - 999,457 189,803 107,447 69,600 246,645 613,495 Reimbursement of expenses 1,722,914 1,084,170 1,356,430 1,120,646 5,284,160 3,823,945 819,298 - 804,814 5,448,057 1,722,914 1,084,170 2,355,887 1,270,646 6,433,617 4,013,748 926,745 69,600 1,401,459 6,411,552 Contribution of the Government of the Republic of Tajikistan - - - - 488,854 - - - - 256,870 1,722,914 1,084,170 2,355,887 1,270,646 6,922,471 4,013,748 926,745 69,600 1,401,459 6,668,422 Cumulative Grant No. Grant No. Grant No. Credit No. Total H8790-TJ TF014871 D070-TJ 5666-TJ Reimbursement of expenses 10,675,739 3,121,947 1,356,430 1,925,460 17,079,576 Direct payment 1,444,117 240,653 1,138,657 246,645 3,070,072 Advances 1,000,000 350,000 1,000,000 500,000 2,850,000 13,119,856 3,712,600 3,495,087 2,672,105 22,999,648 Contribution of the Government of the Republic of Tajikistan - - - - 1,132,990 13,119,856 3,712,600 3,495,087 2,672,105 24,132,638 10 6. PROJECT EXPENSES Project expenses by components are presented in the summary of expenditures paid by project components. Project expenses on major categories are presented in the summary of funds received and expenditures paid. Breakdown of project expenses by categories and sources of financing is presented as follows: PBF payments, including payments on initial verification For the year ended December 31, 2018 For the year ended December 31, 2017 Grant No. Grant No. Grant No. Credit No. Government Total Grant No. Grant No. Grant No. Credit No. Government Total H8790-TJ TF014871 D070-TJ 5666-TJ of RT H8790-TJ TF014871 D070-TJ 5666-TJ of RT Performance Based Financing (PBF) payments 1,022,228 977,155 340,836 - 488,854 2,829,073 695,756 569,222 149,480 - 256,870 1,671,328 Payments on initial verification 67,912 49,417 25,560 - - 142,889 80,349 61,723 38,245 - - 180,317 Expenses related to the PBF implementation in various conditions 24,975 17,846 - - - 42,821 18,500 20,205 - - - 38,705 1,115,115 1,044,418 366,396 - 488,854 3,014,783 794,605 651,150 187,725 - 256,870 1,890,350 Cumulative Grant No. Grant No. Grant No. Credit No. Government Total H8790-TJ TF014871 D070-TJ 5666-TJ of RT Performance Based Financing (PBF) payments 2,927,468 2,520,705 624,648 - 1,132,990 7,205,811 Payments on initial verification 270,061 246,994 82,626 - - 599,681 Expenses related to the PBF implementation in various conditions 78,559 76,788 - - - 155,347 3,276,088 2,844,487 707,274 - 1,132,990 7,960,839 11 Consultation services For the year ended December 31, 2018 For the year ended December 31, 2017 Grant No. Grant No. Grant No. Credit No. Government Total Grant No. Grant No. Grant No. Credit No. Government Total H8790-TJ TF014871 D070-TJ 5666-TJ of RT H8790-TJ TF014871 D070-TJ 5666-TJ of RT Salary and related taxes 457,411 61,777 4,656 - - 523,844 184,007 114,332 72,338 - - 370,677 TA Verification of construction works and assessment of the implementation of the enviromental management 5,678 4,457 49,915 - - 60,050 10,330 - - - - 10,330 Technical support 4,216 3,311 - - - 7,527 99,350 - - - - 99,350 Development of design estimates for construction - - 4,246 - - 4,246 486,794 89,187 5,228 - - 581,209 Audit 4,118 - - - - 4,118 486,794 89,187 5,228 - - 581,209 Operational audit - - - - - - 4,467 - - - - 4,467 471,423 69,545 58,817 - - 599,785 784,948 203,519 77,566 - 1,066,033 Cumulative Grant No. Grant No. Grant No. Credit No. Government Total H8790-TJ TF014871 D070-TJ 5666-TJ of RT Salary and related taxes 2,153,005 347,801 16,473 - - 2,517,279 Technical support 462,679 266,132 157,051 - - 885,862 Operational audit 99,350 - - - - 99,350 TA Verification of construction works and assessment of the implementation of the enviromental management 10,145 4,457 49,915 - - 64,517 Audit 24,780 - - - - 24,780 Development of design estimates for construction - - 4,246 - - 4,246 2,749,959 618,390 227,685 - - 3,596,034 12 Goods For the year ended December 31, 2018 For the year ended December 31, 2017 Grant No. Grant No. Grant No. Credit No. Government Total Grant No. Grant No. Grant No. Credit No. Government Total H8790-TJ TF014871 D070-TJ 5666-TJ of RT H8790-TJ TF014871 D070-TJ 5666-TJ of RT Medical equipment - - 1,250,736 - - 1,250,736 - - - - - - Furniture - - 443,029 - - 443,029 - - 62,497 - - 62,497 Solar battery - - 199,254 - - 199,254 - - 24,915 - - 24,915 Cold chain - - 47,153 - - 47,153 - - - - - - Office equipment - - - - - - 58,480 - - - 58,480 Vehicles - - - - - - - - 69,600 - - 69,600 - - 1,940,172 - - 1,940,172 58,480 - 157,012 - - 215,492 Cumulative Grant No. Grant No. Grant No. Credit No. Government Total H8790-TJ TF014871 D070-TJ 5666-TJ of RT Medical equipment 421,486 - 1,250,736 - - 1,672,222 Furniture 79,318 - 505,526 - - 584,844 Vehicles 404,510 - 139,200 - - 543,710 Office equipment 416,371 - - - - 416,371 Medical bags for doctors and nurses 340,241 - - - - 340,241 Solar battery - - 224,169 - - 224,169 Medical literature 198,236 - - - - 198,236 Visual aids, stimulators and moulages 155,211 - - - - 155,211 Materials 87,392 - - - - 87,392 Cold chain - - 47,153 - - 47,153 Accounting software 10,500 - - - - 10,500 2,113,265 - 2,166,784 - - 4,280,049 13 Works For the year ended December 31, 2018 For the year ended December 31, 2017 Grant No. Grant No. Grant No. Credit No. Government Total Grant No. Grant No. Grant No. Credit No. Government Total H8790-TJ TF014871 D070-TJ 5666-TJ of RT H8790-TJ TF014871 D070-TJ 5666-TJ of RT Construction works 183,714 - - 1,352,266 - 1,535,980 1,083,033 - - 1,268,280 - 2,351,313 Repair and maintenance of premises - - - 46,440 - 46,440 - - - - - - 183,714 - - 1,398,706 - 1,582,420 1,083,033 - - 1,268,280 - 2,351,313 Cumulative Grant No. Grant No. Grant No. Credit No. Government Total H8790-TJ TF014871 D070-TJ 5666-TJ of RT Construction works 1,823,954 - - 2,620,546 - 4,444,500 Repair and maintenance of premises 83,931 - - 46,440 - 130,371 1,907,885 - - 2,666,986 - 4,574,871 14 Trainings and workshops For the year ended December 31, 2018 For the year ended December 31, 2017 Grant No. Grant No. Grant No. Credit No. Government Total Grant No. Grant No. Grant No. Credit No. Government Total H8790-TJ TF014871 D070-TJ 5666-TJ of RT H8790-TJ TF014871 D070-TJ 5666-TJ of RT Trainings on updated guideline of PBF 42,731 17,844 - - - 60,575 - 85,122 - - - 85,122 Briefings for the public 5,139 - - - - 5,139 - - - - - - Study tours to increase the capacity of the MoH 1,004 - - - - 1,004 - - - - - - Trainings for public healthcare workers 834 - - - - 834 258,072 - - - - 258,072 Trainings for PBF verificators - - - - - - 12,713 9,218 - - - 21,931 Verification, quality assessment, PBF invoice payments - - - - - - 20,556 10,356 - - - 30,912 Contract award to the PHC providers under the RBF Program - - - - - - 385 15,612 - - - 15,997 Other - - - - - - 6,770 591 - - - 7,361 49,708 17,844 - - - 67,552 298,496 120,899 - - - 419,395 15 Cumulative Grant No. Grant No. Grant No. Credit No. Government Total H8790-TJ TF014871 D070-TJ 5666-TJ of RT Trainings for public healthcare workers 1,116,323 - - - - 1,116,323 Trainings for PBF verificators 207,478 106,726 - - - 314,204 Trainings on updated guideline of PBF 42,731 102,966 - - - 145,697 Workshops on project implementation 114,639 2,533 - - - 117,172 Verification, quality assessment, PBF invoice payments 20,556 10,356 - - - 30,912 Contract award to the PHC providers under the RBF Program 385 15,612 - - - 15,997 Briefings for the public 5,139 - - - - 5,139 Study tours to increase the capacity of the MoH 1,004 - - - - 1,004 Other 15,598 591 - - - 16,189 1,523,853 238,784 - - - 1,762,637 16 Operating expenses For the year ended December 31, 2018 For the year ended December 31, 2017 Grant No. Grant No. Grant No. Credit No. Government Total Grant No. Grant No. Grant No. Credit No. Government Total H8790-TJ TF014871 D070-TJ 5666-TJ of RT H8790-TJ TF014871 D070-TJ 5666-TJ of RT Salary and related taxes 151,476 - 12,512 - - 163,988 102,166 - 12,250 - - 114,416 Fuel 22,300 - - - - 22,300 19,190 - - - - 19,190 Communication 20,896 - - - - 20,896 4,805 - - - - 4,805 Bank fees 14,433 - - - - 14,433 12,901 - - - - 12,901 Repair and maintenance of vehicles 10,680 - - - - 10,680 9,110 - - - - 9,110 Stationery 7,097 - - - - 7,097 11,548 - - - - 11,548 Repair of offices in regions 5,224 - - - - 5,224 11,182 - - - - 11,182 Audit - - 4,118 - - 4,118 - - 4,000 - - 4,000 Advertising - - - - - - 18,642 - - - - 18,642 Business trips - - - - - - 17,067 - - - - 17,067 Repair and maintenance of premises - - - - - - 661 - - - - 661 Other 6,290 - 5,473 - - 11,763 47,738 - - - - 47,738 238,396 - 22,103 - - 260,499 255,010 - 16,250 - - 271,260 17 Operating expenses Cumulative Grant No. Grant No. Grant No. Credit No. Government Total H8790-TJ TF014871 D070-TJ 5666-TJ of RT Salary and related taxes 448,183 - 33,700 - - 481,883 Repair and maintenance of premises 103,232 - - - - 103,232 Fuel 60,355 - - - - 60,355 Communication 57,458 - - - - 57,458 Business trips 51,111 - - - - 51,111 Advertising 45,606 - - - - 45,606 Bank fees 44,172 - - - - 44,172 Stationery 42,035 - - - - 42,035 Repair and maintenance of vehicles 39,172 - - - - 39,172 Repair of offices in regions 16,406 - - - - 16,406 Audit - - 8,118 - - 8,118 Other 100,420 - 6,282 - - 106,702 1,008,150 - 48,100 - - 1,056,250 18 7. FINANCIAL POSITION Financial position as at December 31, 2018 and 2017 comprise: December 31, December 31, 2018 2017 ASSETS AND EXPENDITURES Cash and cash equivalents 880,003 1,417,430 Cumulative expenses 23,230,680 15,765,469 Foreign exchange loss 40,604 46,502 Other expenses 8,297 4,626 TOTAL ASSETS AND EXPENDITURES 24,159,584 17,234,027 FINANCING Funds received 22,999,648 16,566,031 Contribution of the Government of the Republic of Tajikistan 1,132,990 644,136 Other income 26,946 23,860 TOTAL FINANCING 24,159,584 17,234,027 8. WITHDRAWAL APPLICATIONS Withdrawal applications for the year ended December 31, 2018 comprise: Sources of Application Value date Advances Direct Goods and Total financing payment services, including audit, trainings and operating expenses Grant No. H8790-TJ 27 May 4, 2018 - - 631,220 631,220 28 August 13, 2018 - - 578,958 578,958 29 November 26, 2018 - - 512,736 512,736 - - 1,722,914 1,722,914 Grant No. TF 014871 14 January 5, 2018 - - 255,333 255,333 15 May 14, 2018 - - 265,719 265,719 16 August 7, 2018 - - 299,925 299,925 17 November 28, 2018 - - 263,193 263,193 - - 1,084,170 1,084,170 Grant No. D070-TJ 8 February 6, 2018 - - 122,345 122,345 9 May 4, 2018 - - 395,916 395,916 10 July 17, 2018 - - 411,623 411,623 11 July 30, 2018 - 620,025 - 620,025 12 September 5, 2018 - - 292,508 292,508 13 August 28, 2018 - 155,007 - 155,007 14 September 6, 2018 - 224,425 - 224,425 15 November 28, 2018 - - 134,038 134,038 - 999,457 1,356,430 2,355,887 19 Sources of Application Value date Advances Direct Goods and Total financing payment services, including audit, trainings and operating expenses Credit No. 5666-TJ 15 February 6, 2018 - - 216,821 216,821 16 March 1, 2018 150,000 - - 150,000 17 May 4, 2018 - - 115,289 115,289 18 July 13, 2018 - - 256,572 256,572 21 August 28, 2018 - - 211,600 211,600 22 November 1, 2018 - - 320,364 320,364 150,000 - 1,120,646 1,270,646 Government of the Republic of Tajikistan - - - 488,854 150,000 999,457 5,284,160 6,922,471 Deleted withdrawal applications for the year ended December 31, 2018 comprise: Sources of Application Last update Advances Direct Goods and Total financing payment services, including audit, trainings and operating expenses Grant No. H8790-TJ 31 April 8, 2019 - - 367,896 367,896 - - 367,896 367,896 9. STATEMENT OF DESIGNATED ACCOUNT Designated account for the year ended December 31, 2018 comprises: Bank National Bank of Tajikistan Designated accounts Grant No. H8790-TJ Grant No. D070-TJ, Grant No. TF014871 Credit No. 5666-TJ Currency US Dollars US Dollars US Dollars Bank account 2269684010002 22696840000089 22696840400003 Bank’s location 27/2 Rudaki avenue, Dushanbe, the Republic of Tajikistan Balance as at January 1, 2018 860,932 510,223 44,820 Advances received - 150,000 - Reimbursement of expenses 1,722,914 2,477,076 1,084,170 Transfer to grant Grant No. D070-TJ - 53,500 - Total funds received to the designated account 1,722,914 2,680,576 1,084,170 Expenses paid 24,918 284,714 - Transfer from Credit No. 5666-TJ - 53,500 - Transfer to transit account 2,030,085 2,501,505 1,128,978 Balance as at December 31, 2018 528,843 351,080 12 20 10. UNDRAWN FUNDS As at December 31, 2018 undrawn funds are presented as follows: Grant Grant Grant Credit No. H8790-TJ No. TF 014871 No. D070-TJ No. 5666-TJ in SDR in USD in SDR in SDR Approved financing amount 10,000,000 4,800,000 3,300,000 4,000,000 Disbursed amount from September 20, 2013 to December 31, 2018 9,298,150 3,712,600 2,481,091 1,902,654 Undrawn financing amount 701,850 1,087,400 818,909 2,097,346 Financing received as at January 1, 2018 8,067,396 2,628,430 808,162 1,003,836 Disbursed in 2018 1,230,754 1,084,170 1,672,929 898,818 Financing received as at December 31, 2018 9,298,150 3,712,600 2,481,091 1,902,654 11. COMMITMENTS In the normal course of activities, the Project concludes agreements with suppliers of goods and services in accordance with the established budget and procurement plan. Contract value of obligations valid as at December 31, 2018 was as follows: Counterparty Contract No. Contract Contract Paid up to Remaining currency value December 31, amount to be 2018 paid (in currency) (in currency) (in currency) LLC “Behruz Sokhtmon Traiding” MOHSP/HSIP_AF1/NCB/016/002_L2 USD 168,905 138,380 30,524 LLC “Vahdat LTD” MOHSP/HSIP_AF1/NCBW/017/004_L2 TJS 1,251,046 541,446 709,600 LLC “Vahdat LTD” MOHSP/HSIP/_AF1/NVB/017/003_L2 TJS 1,230,320 998,656 231,664 LLC ”Dilshod” MOHSP/HSIP/_AF1/NСB/017/001_L2 TJS 1,220,242 1,060,910 159,332 LLC “Ikrom Sokhtmon” MOHSP/HSIP/_AF1/NCB/017/002_L2 TJS 1,291,224 693,048 598,176 LLC “Kurboniyon” MOHSP/HSIP_AF1/SHW/017/001 TJS 1,289,523 437,484 852,039 LLC “Kalasoz” MOHSP/HSIP_AF/NCB/017/006_L2 TJS 1,330,059 650,480 679,579 LLC “Kalasoz” №MOHSP/HSIP_AF1/NCB/016/003_L2 USD 190,548 129,809 60,739 LLC “Manora Sokhtmon” MOHSP/HSIP_AF1/NCB/017/006_L3 TJS 1,253,107 858,949 394,158 LLC “Murodali” MOHSP/HSIP_AF1/NCB/017/006_L1 TJS 1,269,455 572,072 697,384 LLC “Navbunyod” MOHSP/HSIP_AF1/NCB/017/004_L1 TJS 1,250,979 542,883 708,096 LLC “Saimo” 15.12.2018212688,82 TJS 1,339,331 823,259 516,072 LLC “Saimo” MOHSP/HSIP_AF1/NCB/016/002_L1 USD 150,417 139,694 10,722 MOHSP/HSIP/NCBW/015/005_L1(Догово LLC “Sitoish” р субподряда №7/6-2018) USD 49,766 26,862 22,904 LLC “Sitoish” №MOHSP/HSIP_AF1/NCB/016/003_L1 USD 145,952 131,383 14,568 LLC “SMU-1” MOHSP/HSIP/_AF1/NCB/017/002_L1 TJS 1,301,046 1,076,688 224,358 LLC “Sokhtmon Arzon” MOHSP/HSIP_AF1/NCBW/016/004_L2 USD 146,336 132,353 13,982 LLC “Farrukhruz-1” MOHSP/HSIP_AF1/NCB/017/005_L1 TJS 1,272,440 480,158 792,282 MOHSP/HSIP/NCBW/015/005_L2 LLC “Khol Sokhtmon” (Дополнение) USD 10,232 9,056 1,176 LLC “Hoji Asadullo” MOHSP/HSIP/_AF1/NСB/017/001_L1 TJS 1,228,311 1,013,660 214,651 LLC “Sharq” MOHSP/HSIP/_AF1/NCB/017/003_L1 TJS 1,226,192 909,680 316,512 LLC “Aral Neru” MOHSP/HSIP_AF1/NCB/017/001 TJS 2,197,369 1,977,632 219,737 Counterparty Contract No. Contract Contract Paid up to Remaining currency value December 31, amount to be 2018 paid (in currency) (in currency) (in currency) 21 LLC “Tolokor” MOHSP/HSIP_AF1/NCB/016/005 USD 158,185 158,175 10 CJSC “Monolit 05” MOHSP/HSIP_AF1/NCB/016/005_L2 USD 144,487 101,250 43,237 CJSC “Sughdi SKH” MOHSP/HSIP_AF1/NCBW/016/007_L1 TJS 1386471.79 1,039,614 346,858 CJSC “Sughdi SKH” MOHSP/HSIP_AF1/NCBW/016/007_L2 TJS 1,415,197 1,017,788 397,409 JSC “Idorai Istehsolii sokhtmoni” MOHSP/HSIP_AF1/NCB/016/006_L1 TJS 1,266,498 803,081 463,418 JSC “Idorai Istehsolii sokhtmoni” MOHSP/HSIP_AF1/NCB/016/006_L2 TJS 1,257,586 484,282 773,304 UNICEF MOH/H81P/SSS/014/001 USD 682,882 542,589 140,293 LLC “Arkhstroy 2” MOHSP/HSIP/NCBW/015/006_L2 USD 153,456 138,129 15,327 LLC “Balkhi Safo- Dushanbe” MOHSP/HSIP/NCBW/015/001_L2 USD 147,022 132,352 14,670 LLC ”DIYOR A” MOHSP/HSIP/NCBW/015/002_L2 USD 152,762 136,097 16,665 LLC “DIYOR A” MOHSP/HSIP/NCBW/015/002_L1 USD 154,672 146,977 7,695 LLC “DSP-Gaz” MOHSP/HSIP/NCBW/015/005_L1 USD 199,188 179,291 19,897 LLC “Kafolat Muminobod” MOHSP/HSIP/NCBW/015/006_L1 USD 295,275 265,779 29,496 LLC “Ramzes” MOHSP/HSIP/NCBW/015/003_L2 USD 152,482 137,239 15,242 LLC ”SANA” MOHSP/HSIP/NCBW/015/004_L2 USD 154,769 139,301 15,467 LLC “Budyodkori Somon” MOHSP/HSIP/NCBW/015/003_L1 USD 147,772 133,006 14,766 LLC “Mubin” MOHSP/HSIP/NCBW/015/004_L1 USD 157,639 141,886 15,753 LLC “Sorbon service prokat” MOHSP/HSIP/NCBW/015/001_L1 USD 154,589 139,145 15,443 LLC “Khol Sokhtmon” MOHSP/HSIP/SHG/OC-4 USD 46,436 5,276 41,159 LLC “Khol Sokhtmon” MOHSP/HSIP/NCBW/015/005_L2 USD 149,985 135,017 14,968 12. LEGAL CASES There were no any legal claims related to the Project. 13. EVENTS AFTER THE REPORTING DATE During 2019 until the date of issue of the project financial statements the World Bank has provided financing to the Project as follows: Financing Value date Application Grant Grant Grant Credit method No. H8790-TJ No. TF 014871 No. D070-TJ No. 5666-TJ Direct payment January 16, 2019 23 - - - 600,000 Reimbursement of expenses February 12, 2019 24/1 - - - 494,881 Reimbursement of expenses April 29, 2019 25 - - - 314,753 Reimbursement of expenses February 19, 2019 30 473,082 - - - Reimbursement of expenses April 30, 2019 WA# SC 1-1 170,612 - - - Reimbursement of expenses January 21, 2019 2 - 341,441 - - Reimbursement of expenses February 19, 2019 18 - 340,076 - - Reimbursement of expenses May 3, 2019 19 - 131,460 - - Reimbursement of expenses February 19, 2019 16 - - 154,702 - Reimbursement of expenses April 30, 2019 7 - - 169,478 - Reimbursement of expenses May 3, 2019 17 - - 200,137 - 643,694 812,977 524,317 1,409,634 As at the date of issue of the project financial statements no other significant events or transactions occurred, except for the events or transactions described above. 22