INTEGRATED LAND ADMINISTRATION SYSTEM PROJECT PROJECT FINANCIAL STATEMENTS DESIGNATED ACCOUNT STATEMENT TOGETHER WITH INDEPENDENT AUDITORS' REPORT FOR THE YEAR ENDED DECEMBER 31, 2015 INTEGRATED LAND ADMINISTRATION SYSTEM PROJECT CONTENTS Page Project Financial Statements and Independent Auditors' Report: Independent Auditors' Report 1 -2 Statement of Assets and Liabilities 3 Statement of Sources and Uses of Funds 4-7 Statement of Expenditure by Components - Loan 8 Notes to the Project Financial Statements 9 - 12 Annex I - Reconciliation of the Loan Account 13 Independent Auditors' Report on the Designated Account 14 Designated Account Statement 15 Management letter to the Project implementation Unit 16 - 17 Checklist 18 Tel: +385 1 2395 741 BDO Croatia d.o.o. Fax: +385 1 2303 691 10000 Zagreb E-mail: bdo-croatia@bdo.hr Trg J. F. Kennedy 6b Republic of Croatia Ministry of Justice Utica grada Vukovara 49 10000 Zagreb and Republic of Croatia State Geodetic Administration Gru9ka 20 10000 Zagreb INDEPENDENT AUDITOR'S REPORT We have audited the accompanying Statements of assets and liabilities of the Integrated Land Administration System Project (the Project) financed under the International Bank for Reconstruction and Development Loan (the Loan) No. 8086-HR as at December 31, 2015 and the related Statement of sources and uses of funds and Statement of expenditure by components (Project Financial Statement). These statements are the responsibility of the Project Implementation Unit. Our responsibility is to express an opinion on this statement based on our audit. We conducted our audit in accordance with International Standards on Auditing. These standards require that we plan and perform the audit to obtain reasonable assurance about whether the Project Financial Statement is free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the Project financial statements. We believe that our audit provides a reasonable basis for our opinion. IB D O BDO Croatia d.o.o. In our opinion, the Project Financial Statements as at December 31, 2015 present fairly in all material respects, the cash receipts and payments in the year 2015 of the Project in accordance with the World Bank's requirements. The supplementary information included in Annex I to the Project Financial Statements are presented for the purpose of additional analysis and is not a required part of the basic Project Financial Statements. Such schedules have been subject to the auditing procedures applied in our audit of the basic Project Financial Statements and, in our opinion, are fairly stated in all material respects when considered in relation to the basic Project Financial Statements taken as a whole. Zagreb, June 21, 2016 BDO Croatia d.o.o. Zagreb, Trg J. F. Kennedy 6 110 Crowiia (Lo.o. Z., pruiuni tvNizorskili,konling i ratun1oldsA inih uslua Zdenko Balen, certified auditor, member of Management Board 2 INTEGRATED LAND ADMINISTRATION SYSTEM PROJECT STATEMENT OF ASSETS AND LIABILITIES as at December 31, 2015 (EUR) 31 Dec 2015 31 Dec 2014 Assets Cash on the Loan Designated Account 160,255 586,500 Project expenditures 9,976,224 5,141,144 10,136,479 5,727,644 Liabilities Loan IBRD 8086-HR 8,300,798 5,102,914 Republic of Croatia 1,126,768 624,730 Activities financed 100% from the State Budget 708,913 0 10,136,479 5,727,644 3 C) 0 O 00 CO c - ' 0 a0 0C) CD C w ' 0 't %0 Ln L 00 M N00 m ' 00 I14 LC< 10 r* C' '4 o00 r - os - o - ao ooý -ýen -. -. 00 00-ooN vi oc o a c, m o n T oS o % Cs r-, _ --o C- , - p os4 m ( c -n CY r , C7I ato m_ moa m o, .n n ,- D (,, Ln Ln m oD mn n Cy, , ,O - Ln" L 0 - 0o N 00 L"a -L N N -0o-- 0'- o c ~ r- l' -n W' 0 D 0 C- 0 al CD0 q^ r-,^- 0n^ m^I 0% l -- - o'- E o Z O on m o - ý --4 C) C) C) o o I-~~~0 en ý;-a e n o -e 0 o00 C , O' U. 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