Report on the Federation part of the Project Financial Statements of the FLOODS EMERGENCY RECOVERY PROJECT of the Ministry of Finance and Treasury of Bosnia and Herzegovina Financed by: - IDA Credit No. 5529-BA For the year ended 31 December 2017 FLOODS EMERGENCY RECOVERY PROJECT of the Ministry of Finance and Treasury of Bosnia and Herzegovina CONTENTS 1 Introduction 1 2 Independent Auditor's Report 3 3 Project Financial Statements for the year 2017 5 4 Notes to the Project Financial Statements 10 APPENDICES A. 1 Designated account statement - IDA Credit No. 5529-BA 12 A.2 Local bank account statement 13 B SoE Withdrawal Schedule of IDA Credit No.5529-BA for the year ended 31 December 2017 14 C Reconciliation between World Bank's disbursement statements in XDR and IDA Credit account in EUR according to the balance sheet as of 31 December 2017; SoE Withdrawal Schedule of IDA Credit No-5529-BA 16 FLOODS EMERGENCY RECOVERY PROJECT of the Ministry of Finance and Treasury of Bosnia and Herzegovina 1. Introduction 1.1 Objectives of the Project The objective of the Project is to meet critical needs and restore functionality of infrastructure essential for public services and economic recovery in floods affected areas. 1.2 Components and activities of the Project The Project is comprised of the following two components: Component 1: Emergency Disaster Recovery Goods The recent floods have created significant strains on the supply chains for a variety of goods crucially needed to ensure the continuity of public services and economic opportunities. For example, some coal mines have been flooded, resulting in a restriction of supply to the main thermal power plants. The flooded areas traditionally have been oriented towards agriculture and agribusiness, which were severely affected by the floods, resulting in fodder and forage shortages and an urgent need for seeds and fertilizers for reseeding. The Project will therefore finance, through the use of a positive list, the purchase of goods urgently needed during the recovery phase. The positive list will include logistical goods, reconstruction goods, emergency goods, energy and power sector goods as well as agricultural recovery goods, with an initial priority set of fuel and food, agricultural and emergency goods. The positive list will include: (i) Logistical goods: including water, land and air transport equipment, including spare parts; communications equipment. (ii) Reconstruction goods: including construction materials; construction equipment and industrial machinery (including trucks, dozers, excavators); prefabricated houses. (iii) Emergency goods: including emergency and medical supplies and equipment; food and water containers; chemicals and equipment for water purification and sanitation of land, buildings and other structures; basic food commodities; cleaning and hygienic supplies; mud and water pumping equipment; equipment and furniture for emergency shelters and accommodations; moisture removal equipment; emergency vehicles and supplies; waste management and disposal equipment. (iv) Energy and power sector goods: including petroleum and fuel products; power purchases; power transmission and distribution equipment; mining equipment and pumps to remove water from mines, controls, monitoring and measurement equipment; emergency power generators; and other electrical equipment (v) Agricultural recovery goods: including agricultural equipment and immovable productions systems such as greenhouses, milking parlors and auxiliary installations, sorting or packaging equipment; inputs (excluding pesticides); such as seedlings for perennial crops, orchards and wine yards as well as seeds and fertilizer for reseeding of fields; as well concentrated animal forage and fodder stocks that were destroyed by floods; livestock. (vi) Other Essential Goods: any other goods or commodities essential to the Recipient's recovery from flooding, as agreed in advance by the Association. 1 FLOODS EMERGENCY RECOVERY PROJECT of the Ministry of Finance and Treasury of Bosnia and Herzegovina 1. Introduction (continued) 1.2 Components and activities of the Project (continued) Component 2: Rehabilitation of Key Public infrastructure This Component will support the rehabilitation of both local and regional public infrastructure on the basis of the RNA. The impact of the floods was concentrated on around 60 municipalities in the central, northwest and northeast parts of the country; in many of these, public services delivery was severely impacted. This Component will therefore finance the rehabilitation or reconstruction of high priority, public service delivery infrastructure in the worst affected areas. This component is designed under a framework approach in which activities will be identified in a demand-driven manner, based on the on-going RNA. The project will put particular emphasis on Rural Development, Energy, Transport and Water and Sanitation activities but other public services (education, health) will be considered on a case-by-case basis. The Component will be divided in two Subcomponents that will follow somewhat different project cycles, depending on whether the infrastructure is local or regional. Sub-component 2A: Regional Infrastructure Rehabilitation The main activities include rehabilitation of strategic, regional-level public infrastructure such as transport links, electricity distribution and transmission infrastructure, dikes and other strategic public infrastructure, Subcomponent 2B: Local Infrastructure Rehabilitation. Subcomponent 2B will be focused on local-level infrastructure, such as water supply schemes, local roads and bridges etc. 1.3 Financing of the Project The State of Bosnia and Herzegovina is borrower of the International Development Association (IDA) Credit No. 5529-BA amounting to the equivalent of XDR 65,000,000. Under the terms of a subsidiary finance agreement between B&H and FB&H, funds of the equivalent of XDR 30,875,000 have been lent to FB&H. Categories of cost items to be financed out of the proceeds of the Credit, the allocation of the amounts of the Credit to each category and the percentage of expenditure for cost items so to be financed in each category are as follows: Item Amount of the % of expenditure to Credit allocated be financed (in SDR) (inclusive of taxes) (1) Eligible Essential Goods and Commodities for Part A.1.1 of the Project 12,350,000 100% (2) Goods, works, non-consulting services, consultant's services, Training and Incremental Operating Costs for Parts A.2 and A.3. of the Project 18,525,000 100% Subtotal 30,875,000 IDA Credit No. 5529-BA become effective on 15 September 2014. Planned closing date is 31 December 2018. First Amendment to the Financing Agreement Credit 5529-BA was signed in May 2016. 2 BAKER TILLY RE OPINION Baker Tilly Re Opinion d.o.a. Grbavidka 4 71000 Sarajevo Bosna i Hercegovina T: +387 (0) 33 552 150 F: +387 (0) 33 552 152 info@bakertillyreopinion,ba www.bakertillyreopinion.ba Independent Auditor's Report To the State of Bosnia and Herzegovina, Ministry of Finance and Treasury Attn. of Minister of Finance and Treasury H E. Mr. Vjekoslav Bevanda Report on the Project Financial Statements Opinion We have audited the accompanying project financial statements of the Federation part of the Floods Emergency Recovery Project (the "Project"), which comprise of Summary of sources and uses of funds, Balance sheet, Designated account, local bank account, Statements of credit withdrawals as of and for the year ended 31 December 2017, and a summary of significant accounting policies and other explanatory notes for the year then ended, financed under IDA Credit Agreement No. 5529-B8A. In our opinion, the accompanying project financial statements present fairly, in all material aspects, the financial position of the Project as of 31 December 2017, and of the funds received and disbursed during the year then ended, in accordance with the cash basis of accounting based on International Public Sector Accounting Standard ("IPSAS"), as described in Note 4.1. Basis for Opinion We conducted our audit in accordance with International Standards on Auditing (ISAs) and "Guidelines: Annual Financial Reporting and Auditing for World Bank-Financed Activities" issued by FMSB. 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 of Finance and Treasury 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 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. Responsibilities of Management and Those Charged with Governance for the Project Financial Statements The management of project implementation unit is responsible for the preparation of these project financial statements in accordance with the cash basis of accounting based on IPSAS, as described in Note 4.1., Guidelines: Annual Financial Reporting and Auditing for World Bank-Financed Activities, and for such internal control as management determines is necessary to enable the preparation of project 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 Project's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Project or to cease operations or has no realistic alternative but to do so. 3 JIB 42009600550009 | PV 200960550009 1 Ra"uw Bank dd BH 1610000045270000 An independent member of Baker Tilly International FLOODS EMERGENCY RECOVERY PROJECT of the Ministry of Finance and Treasury of Bosnia and Herzegovina Those charged with governance are responsible for overseeing the financial reporting process. Responsibilities for the Audit of Financial Statements Our objectives are to obtain reasonable assurance about whether the project 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 ISAs will always detected a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or 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 ISAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also: * Identify and assess the risks of material misstatement of the project 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 Project'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 Project'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 Project to cease to continue as a going concern. * Evaluate the overall presentation, structure and content of the project 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 requirements In addition, with respect to the Statement of Expenditure, adequate supporting documentation has been maintained to support claims to the World Bank for reimbursements of expenditure incurred; and all expenditure included in withdrawal applications and reimbursed against are eligible for financin under the project. Signed n hal f Baker Tilly Re Opinion d o,. Sarqjevo Nihad Fe zit, Direc r and Certified Auditor Ema Sinanovid, Certified Auditor Sarajevo, 22 June 2018 4 FLOODS EMERGENCY RECOVERY PROJECT of the Ministry of Finance and Treasury of Bosnia and Herzegovina Project financial statements for the year ended 31 December 2017 (all amounts in EUR, untess otherwise stated) 3. Project financial statements for the year 2017 3.1 Summary of sources and uses of funds under the IDA Credit No.5529-BA and Other income Actual Cumulative Cumulative Cumulative Cumulative Ref. 2017 2017 2016 budget variance FINANCING IDA Credit No- 5529-BA 3.1.18,674,267 32,756,527 24,082,260 39,282,389 6,525,862 VAT returns 3-1.2 313,596 845,309 531,713 - (845,309) Other income 3.1.3 2,863 4,257 1,394 - (4,257) TOTAL FINANCING 3.2 8,990,726 33,606,093 24,615,367 39,282,389 5,676,296 PROJECT EXPENDITURE By Category Eligible Essential Goods and Commodities for Part A 1.1 of the Project 517,003 10,670,296 10,153,293 15,712,954 5,042,658 Goods, works, non- consulting services, consults services, Training and Incremental Operating Costs for Parts A.2 and A.3. of the Project 7,816,260 21,429,369 13,613,109 23,569,435 2,140,066 TOTAL EXPENDITURE 3.2 8,333,263 32,099,665 23,766,402 39,282,389 7,182,724 PROJECT EXPENDITURE By Component Emergency Disaster Recovery Goods 517,003 10,670,298 10,153,295 15,712,954 5,042,656 Rehabilitation of Key Public Infrastructure 7,663,744 21,204,643 13,540,899 21,605,315 400,672 Project Implementation Support and Capacity Building 152,516 224,724 72,208 1,964,120 1,739,396 TOTAL EXPENDITURE 3.2 8,333,263 32,099,665 23,766,402 39,282,389 7,182,724 5 FLOODS EMERGENCY RECOVERY PROJECT of the Ministry of Finance and Treasury of Bosnia and Herzegovina Project financial statements for the year ended 31 December 2017 (all amounts in EUR, unless otherwise stated) 3. Project financial statements for the year 2017 (continued) 3.1.1 Summary of sources and uses of funds under the IDA Credit agreement No. 5529-BA Actual Cumulative Cumulative Cumulative Cumulative Ref. 2017 2017 2016 budget variance FINANCING IDA Credit No. 5529-BA 39,282,389 Initial deposit - 1,500,000 1,500,000 Direct payments 954,956 11,222.868 10,267,912 SoE replenishments 7,719,311 20,033,659 12,314,348 TOTAL FINANCING 3.2 8,674,267 32,756,527 24,082,260 39,282,389 6,525,826 PROJECT EXPENDITURE By Category Eligible Essential Goods and Commodities for Part A.1.1 of the Project 517,003 10,670,296 10,153,293 15,712,954 5,042,658 Goods, works, non- consulting services, consults' services, Training and Incremental Operating Costs for Parts A.2 and A.3. of the Project 7,671,510 21,284,604 13,613,094 23,569,435 2,284,831 TOTAL EXPENDITURE 3.2 8,188,513 31,954,900 23,766,387 39,282,389 7,327,489 6 FLOODS EMERGENCY RECOVERY PROJECT of the Ministry of Finance and Treasury of Bosnia and Herzegovina Project financial statements for the year ended 31 December 2017 (all amounts in EUR, unless otherwise stated) 3. Project financial statements for the year 2017 (continued) 3.1.2 Summary of sources and uses of funds under the Government Actual Cumulative Cumulative Cumulative Cumulative Ref. 2017 2017 2016 budget variance FINANCING VAT returns 187,341 719,054 531,713 - (719,054 Co-financing municipalities 87,635 87,635 - - (87,635) Co-financing Sava River Watershed Agency 38,620 38,20 - - (38,620) TOTAL FINANCING 3.1 313,596 845,309 531,713 - (845,309) PROJECT EXPENDITURE By Category Goods, works, non- consulting services, consults' services, Training and Incremental Operating Costs for Parts A.2 and A.3. of the Project 144,750 144,765 15 - (144,765) 144,750 144,765 15 - (144,765) 7 FLOODS EMERGENCY RECOVERY PROJECT of the Ministry of Finance and Treasury of Bosnia and Herzegovina Project financial statements for the year ended 31 December 2017 (all amounts in EUR, unless otherwise stated) 3. Project financial statements for the year 2017 (continued) 3.1.3 Summary of sources and uses of funds under Other income Actual Cumulative Cumulative Cumulative Cumulative Ref. 2017 2017 2016 budget variance FINANCING Tender documentation sold 2,863 4,257 1,394 - (4,257) TOTAL FINANCING 3,2 2,863 4,257 1,394 - (4,257) PROJECT EXPENDITURE By Category Goods, works, non- consulting services, consults' services, Training and Incremental Operating Costs for Parts A.2 and A.3. of the Project - - - - TOTAL EXPENDITURE 32 - - - - 8 FLOODS EMERGENCY RECOVERY PROJECT of the Ministry of Finance and Treasury of Bosnia and Herzegovina Project financial statements for the year ended 31 December 2017 (all amounts in EUR, unless otherwise stated) 3. Project financial statements for the year 2017 (continued) 3.2 Balance sheet as of 31 December 2017 showing accumulated funds of the project and bank balances concerning World Bank funding 31 December 31 December Ref. 2017 2016 ASSETS Project expenditure under IDA Credit No. 5529-BA 31 1 31,954,900 23.766,387 Project expenditure under Government 3.1 2 144,765 15 32,099,665 23,766,402 Designated account - IDA Credit No 5529-BA A.1 802,075 316,321 Government VAT returns A.2 704.353 532,644 1,506,428 848,965 Total assets 33,606,093 24,615,37 LIABILITIES IDA Credit No. 5529-BA 3.1 1 32,756,527 24.082,260 Government VAT returns 3.1-2 845,309 531,713 Other income 3.1 3 4,257 1,394 Total liabilities 33,606,093 24,615,367 Signed and aut rized by Iojz Duder Azra Bukva PIU Director Financial Manager Sarajevo, 22 June 2018 9 FLOODS EMERGENCY RECOVERY PROJECT of the Ministry of Finance and Treasury of Bosnia and Herzegovina Project financial statements for the year ended 31 December 2017 (all amounts in EUR, unless otherwise stated) 4. Notes to the project financial statements 4.1 Basis of preparation and accounting records These project financial statements have been prepared in accordance with the International Public Sector Accounting Standard: "Financial Reporting under the Cash Basis of Accounting" issued by the Public Sector Committee of the International Federation of Accountants, and incorporate the accounting policies below, which have been consistently followed in all material respects and comply with the "Guidelines: Annual Financial Reporting and Auditing for World Bank - Financed Activities", issued by the Financial Management Sector Board. 4.2 Accounting policies The Project's fiscal year is January 1 to December 31 for the recording of all transactions. Cash basis of accounting All receipts and expenses under IDA Credit are recorded on actual receipt and payment basis of accounting as per approved categories. Project expenditure is stated at original cost on the balance sheet. Direct payments Direct payments concern the amounts paid directly from the Credit account of the World Bank. Statement of Expenditure (SoE) Statements of Expenditure are used to state the expenditure under IDA Credit during a certain period. These statements are sent to the World Bank's disbursement department who authorizes the payment of the expenditure through the Designated accounts. Currency conversions The reporting currency is Euro (EUR). Sources and use of funds (payments to suppliers and contractors) in currencies other than EUR have been converted to EUR using the currency rate at the moment of the transaction. Bank balances, recorded on the balance sheet at year-end, have been converted at year-end rate. Designated accounts This is the total amount of the withdrawals from the Credit account for the Project. IDA Credit account is in XDR. Other income Other income includes income from tender documentation sold. 10 FLOODS EMERGENCY RECOVERY PROJECT of the Ministry of Finance and Treasury of Bosnia and Herzegovina Project financial statements for the year ended 31 December 2017 (all amounts in EUR, unless otherwise stated) 4. Notes to the project financial statements (continued) 4.2 Accounting policies (continued) Interest on Designated account Interest earned on the Designated account belongs to the Borrower. 11 FLOODS EMERGENCY RECOVERY PROJECT of the Ministry of Finance and Treasury of Bosnia and Herzegovina Project financial statements for the year ended 31 December 2017 (all amounts in EUR, unless otherwise stated) APPENDIX A.1 DESIGNATED ACCOUNT STATEMENT Account owned by: Ministry of Finance and Treasury of Bosnia and Herzegovina Account No.: 53001201964572 Depository Bank: Intesa Sanpaolo Banka d-d Address: Obala Kulina bana 9a 71000 Sarajevo Related Credit: IDA Credit No. 5529-BA Currency: EUR Ref. -EUR Opening balance 1 January 2017 3.2 316,321 Add. World Bank replenishrments B 7,719,311 Tender documentation sold - 7,719,311 Deduct: Payments to suppliers - Expenditure under IDA Credit B 7,233,557 7,233,557 Ending balance 31 December 2017 3.2 802,075 12 FLOODS EMERGENCY RECOVERY PROJECT of the Ministry of Finance and Treasury of Bosnia and Herzegovina Project financial statements for the year ended 31 December 2017 (all amounts in EUR, unless otherwise stated) APPENDIX A.2 LOCAL BANK ACCOUNT STATEMENT Account owned by: Ministry of Agriculture, Water Management and Forestry of FB&H Account No.: 140 101 10200007 20 Depository Bank: Sberbank BH d.d. Address: Fra Andela Zvizdida 1, 71000 Sarajevo Related Credit: Government - VAT returns Currency: BAM Ref. BAM EUR Opening balance 1 January 2017 3.2 1,041,759 532,644 Add: VAT returns 31.2 6,366,406 3,255,092 VAT returns -Payment by the Federal Ministry of Finance (6,000,000) (3,067,751) Tender documentation sold 5,600 2,863 Co-financing municipalities 171,400 87,635 Co-financing Sava River Watershed Agency 75,535 38,620 Incorrect payment Sava River Watershed Agency* 1,500,000 766,938 2 "118,941 1,083,397 Deduct: Payments to suppliers - Bank fees 3-1,2 283,107 144,750 283,107 144,750 Ending balance 31 December 2017 3.2 2,877,593 1,471,291 Less: Incorrect payment Sava River Watershed Aency* 1,500,000 766,938 Expected ending balance 31 December 2017 (relating to Project) 1,377,593 704,353 *As of 26 December 2017, there was cash inflow in amount of BAM 1,500,000 (EUR 766,938) on Project's bank account at Sberbank d.d (Bank account 112), Payment was made by Sava River Watershed Agency on Project's account instead on bank account of another project (Drina Flood Protection Project). Since these funds were not Project related, return of funds was made as of 30 January 2018 on account of Drina Flood Protection Project (Bank statement 11). 13 FLOODS EMERGENCY RECOVERY PROJECT of the Ministry of Finance and Treasury of Bosnia and Herzegovina Project financial statements for the year ended 31 December 2017 (all amounts in EUR, unless otherwise stated) APPENDIX B SoE Withdrawal Schedule of IDA Credit No. 5529-BA for the year ended 31 December 2017 Eligible Goods, works, non-consulting Essential services, Iiil Goods and sevc, Initial G training and Total Total deposit for Part incremental application replenished A.1.of the operating Costs for Parts A.2 and Project A3 of Project Previous years 1,500,000* 10,153,293 13,613,094 23,766,387 24,082,260 Application 52 - 439,379 - 439,379 439,379 Application 68 - 515,577 515,577 515,577 Total direct payments - 439,379 515,577 954,966 954,956 Application 53* - - - 86,462 Application 54* - - - 1,097,687 Application 55 - 18,559 - 18,559 18,556 Application 56 - - 1,162,531 1,162,531 1,162,505 Application 57 - - 299,344 299,344 299,344 Application 58 - 7,480 - 7,480 7,480 Application 59 - - 349,825 349,825 349,825 Application 60 - 1,778 - 1,778 1,778 Application 61 - 41,078 41,078 41,078 Application 62 - 997 - 997 997 Application 63 - - 458,149 458,149 458,149 Application 64 - 24,201 - 24,201 24,201 Application 65 (798,536) - 798,536 798,536 - Application 65-A 798,536 - - - 798,536 Application 66 - 24,609 - 24,609 24,609 Application 67 - - 543,735 543,735 543,735 Application 69 - - 424,186 424186 424,186 Application 70 - - 1,020,725 1,020,725 1,020,725 Application 71 - - 2,262 2,262 2,262 Application 72 - - 893,623 893,623 893,623 Application 73 - - 463,573 463,573 463,573 Application 74** - - 488,482 488,482 - Application 75** - - 209,969 209,969 Application 77* con.FBiH-P-61 - - (85) (85) - Total SoE applications - 77,624 7,155,933 7,233,557 7,719,311 *As per World Bank statement, outstanding balance of Initial deposit is EUR 1,499,994. Difference in amount of EUR 6 refers to Application 45 from 2016, which was approved by World Bank, but for which there was no replenishment on special account, and which was instead replenished from initial deposit. 14 FLOODS EMERGENCY RECOVERY PROJECT of the Ministry of Finance and Treasury of Bosnia and Herzegovina Project financial statements for the year ended 31 December 2017 (all amounts in EUR, unless otherwise stated) APPENDIX B SoE Withdrawal Schedule of IDA Credit No. 5529-BA for the year ended 31 December 2017 (continued) Eligible Goods, works, Essential non-consulting Goods and services, Total InitialCommodities training and Total Tol deposit for Part incremental application d A.1.of the operating Costs for Parts A.2 and Project A3 of Project Total 2017 - 517,003 7,671,510 8,188,513 8,674,267 As of 31 December 2017 1,500,000 10,670,296 21,284,604 31,954,900 32,756,527 *Applications No.53 and 54 were replenished in 2017, but expenses were made in 2016 **Applications No. 74 and 75 were replenished in 2018, but expenses were made in 2017 ***Application 77- correction was made Application FBiH-P-61 (par). 15 FLOODS EMERGENCY RECOVERY PROJECT of the Ministry of Finance and Treasury of Bosnia and Herzegovina Project financial statements for the year ended 31 December 2017 (all amounts in EUR, unless otherwise stated) APPENDIX C Reconciliation between World Bank's disbursement statements in XDR and IDA Credit account in EUR according to the balance sheet as of 31 December 2017; SoE Withdrawal Schedule of IDA Credit No. 5529-BA Changes in Exchange Changes in IDA Credit rate used IDA Credit (in XDR) (in EUR) Original amount 30,875,000 1,272304 39,282,389 Disbursed in previous years 19,101478 24,082,260 Withdrawal 52 344,042 1,277109 439,379 Withdrawal 53 67,899 1.273393 86,462 Withdrawal 54 869,942 1,261794 1,097,687 Withdrawal 55 14,698 1 262551 18,556 Withdrawal 56 921,638 1 261347 1,162,505 Withdrawal 57 234,493 1.276558 299,344 Withdrawal 58 5,861 1 276118 7,480 Withdrawal 59 274,632 1.273796 349,825 Withdrawal 60 1,397 1.272408 1,778 Withdrawal 61 32,844 1.250686 41,078 Withdrawal 62 794 1,255471 997 Withdrawal 63 371,244 1 234091 458,149 Withdrawal 64 19,629 1-232928 24,201 Withdrawal 65 - - - Withdrawal 66 20,146 1-221556 24,609 Withdrawal 65-A 659,983 1-209933 798,536 Withdrawal 67 448,493 1.212359 543,735 Withdrawal 68 432,832 1.191171 515,577 Withdrawal 69 354,531 1.196470 424,186 Withdrawal 70 850,973 1.199480 1,020,725 Withdrawal 71 1,891 1 196487 2,262 Withdrawal 72 745,842 1-198140 893,623 Withdrawal 73 387,139 1.197431 463,573 Total disbursed in 2017 7,060,943 8,674,267 Cumulative disbursements as of 31 December 2017 26,162,421 32,756,527 Calculated undisbursed balance as of 31 December 2017 4,712,579 6,525,862 Undisbursed balance as per World Bank Summary for December 2017 4,712,579 1.187470 5,596,046 Potential exchange rate loss (929,816) 16