I I II II II Ministry of Finance of the Republic of Belarus Data-Processing Center of the Ministry of Finance of the Republic of Belarus Republican Unitary Enterprise Special purpose Financial Statements on the Project "Improving Efficiency and Transparency of the Public Finance Management System in Belarus" TF015275 for the period from January 1, 2016 to July 5, 2017 I II II II II I I Improving Efficiency and Transparency of the Public Finance Management System in Belarus TF015275 CONTENTS STATEMENT ON MANAGEMENT'S RESPONSIBILITY FOR PREPARATION AND APPROVAL OF THE SPECIAL PURPOSE FINANCIAL STATEMENTS ON THE PROJECT FOR THE PERIOD FROM JANUARY 1, 2016 TO JULY 5, 2017................ ............ ....................3 INDEPENDENT AUDITORS' OPINION .....................4....... .................4 GRANT SOURCES AND USES OF FUNDS STATEMENT FOR THE PERIOD FROM JANUARY 1, 2016 TO JULY 5, 2017..... ........... ............................................... 7 USES OF FUNDS STATEMENT FOR THE PERIOD FROM JANUARY 1, 2016 TO JULY 5, 2017..........8 DESIGNATED ACCOUNT STATEMENT FOR THE PERIOD FROM JANUARY 1, 2016 TO JULY 5, 2017 ............. ........................................ ........................ 9 TRANSIT ACCOUNT STATEMENT FOR THE PERIOD FROM JANUARY 1, 2016 TO JULY 5, 2017 ... 10 SOE WITHDRAWAL SCHEDULE FOR THE PERIOD FROM JANUARY 1, 2016 TO JULY 5, 2017......11 NOTES TO SPECIAL PURPOSE FINANCIAL SATEMENTS FOR THE PERIOD FROM JANUARY 1, 2016 TO JULY 5, 2017 .......................................... 12 2 Improving Efficiency and Transparency of the Public Finance Management System in Belarus TF015275 STATEMENT ON MANAGEMENT'S RESPONSIBILITY FOR PREPARATION AND APPROVAL OF THE SPECIAL PURPOSE FINANCIAL STATEMENTS ON THE PROJECT FOR THE PERIOD FROM JANUARY 1, 2016 TO JULY 5, 2017 The Management of Data-Processing Center of the Ministry of Finance of the Republic of Belarus Republican Unitary Enterprise ("the Enterprise") is responsible for preparation of the Special purpose Financial Statements on the Project "Improving Efficiency and Transparency of the Public Finance Management System in Belarus" ("the Project") being implemented by the Enterprise. The Special purpose Financial Statements present fairly in all material respects the financial position of the Enterprise as at July 5, 2017, as well as all funds of the Project received and used for the period from January 1, 2016 to July 5, 2017 in accordance with International Public Sector Accounting Standards (IPSAS). While preparing the Special purpose Financial Statements on the Project the Management of Data-Processing Center of the Ministry of Finance of the Republic of Belarus Republican Unitary Enterprise ("the Management") is responsible for: * adequate choice and application of accounting policies' principles; * presentation of information including accounting policies in a form which ensures relevance, reliability, comparability and transparency of such information; * compliance with the requirements of IPSAS and disclosure of all significant deviations from IPSAS in the Notes to the Special purpose Financial Statements on the Project. The Management is also responsible for: * developing, implementing and maintaining of effective and reliable internal control system on the Project; * maintenance of accounting records in a form which can reveal and explain the transactions under the Project, provide information of sufficient accuracy on financial position of the Project at any date and ensure compliance with IPSAS; * taking all possible reasonable steps to safeguard the assets under the Project and * preventing and detecting facts of financial and other irregularities. These Special purpose Financial Statements on the Project for the period from January 1, 2016 to July 5, 2017 were approved by Mr. Maksim L. Yermalovich, First Deputy Minister of the Ministry of Finance of the Republic of Belarus on August 14, 2017. On behalf of the Management: Yuriy N. Zdanevic Olga E. Sinishina Director Chief Accountant I I 3 1FBK-BelLLCPK Accountants & business advisers Our ref. # 05-01/82 of August 22, 2017 I Independent auditors' opinion To: the Ministry of Finance of the Republic of Belarus, Data-Processing Center of the Ministry of Finance of the Republic of Belarus Republican Unitary Enterprise, the Management of the Project "Improving Efficiency and Transparency of the Public Finance Management System in Belarus" Opinion We have audited the Special purpose Financial Statements of the Project "Improving Efficiency and Transparency of the Public Finance Management System in Belarus", financed by the International Bank for Reconstruction and Development ("IBRD") in accordance with Loan Agreement TF015275 of April 8, 2014 between the Republic of Belarus and IBRD ("the Agreement"). These Special purpose Financial Statements are comprised of: Grant Sources and Uses of Funds Statement; Uses of Funds Statement; Designated Account Statement; Transit Account Statement; SOE Withdrawal Schedule as at July 5, 2017 and for the period from January 1, 2016 to July 5, 2017, and notes to the Special purpose Financial Statements, including a summary of significant accounting policies. In our opinion, the accompanying Special purpose Financial Statements on the Project present fairly in all material respects the financial position of the Project as at July 5, 2017, as well as funds of the Project received and used for the period from January 1, 2016 to July 5, 2017 in accordance with International Public Sector Accounting Standard "Financial Reporting under the Cash Method of Accounting" developed by the International Public Sector Accounting Standards Board of the International Federation of Accountants. Basis for Opinion 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 Special purpose Financial Statements on the Project" section of this report. We are independent of the Data-Processing Center of the Ministry of Finance of the Republic of Belarus Republican Unitary Enterprise in accordance with the Code of Ethics for Professional Accountants developed by the International Ethics Standards Board for Accountants ("IESBA"), and we have fulfilled our ethical responsibilities in accordance with IESBA. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Restriction on distribution and use This report is intended solely for the use of the Ministry of Finance of the Republic of Belarus, Data-Processing Center of the Ministry of Finance of the Republic of Belarus Republican Unitary Enterprise for presentation of information to the IBRD on the funds received and used upon the Project. This report is not intended for the use of third parties, and we do not bear any responsibility or liability to any other parties except the Ministry of Finance of the Republic of Belarus and Data-Processing Center of the Ministry of Finance of the Republic of Belarus Republican Unitary Enterprise in respect of this report. In case of taking a decision by the third parties related to the contents of this report, the third parties are liable for such decisions. Direct tel/fax +375 (17) 262 5223 E-mail fbk@fbk.by I www.fbk.by FBK-Bel LLC I Logoisky highway 22A, office 201 1 Minsk I 220090 Belarus I F1K-Bel LLC is a member firm of the PKF international Limited family of legally independent firms and does not accept any responsibility or liability for the actions or inactions of any individual member or correspondent firm or firms. 4 I FBK-Be LLC Accountants & business advisers Responsibilities of the Management for the Special purpose Financial Statements on the Project The Management of the Project is responsible for preparation and fair presentation of the specified Special purpose Financial Statements in accordance with International Public Sector Accounting Standard "Financial Reporting under the Cash Method of Accounting" developed by the International Public Sector Accounting Standards Board of the International Federation of Accountants, and for the internal control system that the Management consider necessary for preparation of financial statements that are free material misstatement, whether due to fraud or error. Auditor's Responsibilities for the Audit of the Special purpose Financial Statements on the Project Our objective is to obtain reasonable assurance about whether the Special purpose 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 detect 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 basis of the Special purpose Financial Statements. As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional skepticism thought the audit. We also: * identify and assess the risks of material misstatement of the Special purpose Financial Statements whether due to fraud or error; design and perform audit procedures responsive to those risks; 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 system, 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 internal control system; * evaluate the appropriateness of accounting policy used and the reasonableness of accounting estimates and related disclosures made by the Management; * evaluate the presentation of the Special purpose Financial Statements as a whole, its structure and contents, including disclosure of information, as well as whether the Special purpose Financial Statements present the underlying operations and events in a manner that ensures their reliable representation. We communicate with those charged with govern nce regarding, among other matters, the planned scope and timing of the audit and significant a dit fi dings, including any significant deficiencies in internal control that we identify during our audit. A C' HHc Director of FBK-Bel LLC A.G. Reneisky q) M August 22, 2017 FBK-BeI LLC Accountants & business advisers Audited organisation: Data-Processing Center of the Ministry of Finance of the Republic of Belarus Republican Unitary Enterprise (Data-Processing Center of the Ministry of Finance of the Republic of Belarus UE); 17 Kalvarlyskaya st., Minsk, 220004, Republic of Belarus; State registration: was registered by Minsk Municipal Executive Committee on June 30, 2000 in the Unified State Register of legal entities and individual entrepreneurs under # 100049849; Taxpayer's identification number - 100049849. Audit organisation: FBK-Bel Limited Liability Company (FBK-Bel LLC); office 201, 22A Logoisky highway, Minsk, 220090, Republic of Belarus; State registration: was registered by Minsk Municipal Executive Committee on February 6, 2009 in the Unified State Register of legal entities and individual entrepreneurs under #690398039; Taxpayer's identification number - 690398039. I 6 PP . B ED BY /TBEPACRA1O Firs i,1isteri0'a,feb the Republic of Bclarus i a HT mr pi !isicos Pecny6n Bnapypi, Mr. Maksim L.Yenualovich/ M. EpmonoBs C/ 2017 r, Improving Efficiency and Transparency of the Public Finance ManagementSystem in Belaruk oject -floDbiweHme ar"eKTMHOCTM npopaHOCTH CCTeMM ynpasneHMH, rOCy/apCTB*HHblM1 4)M1HHC ML4 a P( Cy1lHK Ienapycb Grant Sources and Uses of Funds Statement / OT4eTo LICTOMMKax cpecr flpoeTra 4 HX HUcno6oaHMl TF015276 for the Period from 01/0112016 to 05/07/2017 a nepmoA c 01/01/2016 no 05107/2017 in USDB Annapax CWVA Cumulative from Reporting period/ effectiveness/C gaTbI Ha4-ana OT9eTt i nepmox paain3aupam upoeTa TOTAL PER GA/IMToro Opening Cash Balancest OcTRToK AeHeMHLIX CpeACTB Ha HanaJo nepLlopa Designated account - Grant funds / CneWanbHblR BbllHAneHHbl; CeT - CpeacTea rpaiTa 4 830,23 0,00 0,00 Transit account - Grant funds / TPOHaTHtA 0-eT - CpeAcrea rpaHTa 56,37 0,00 0,00 Totalopening cash,balance I Mro OcTaTOK AeHWei,IX opeAcTE Ha aqHAIlOnepvoAg 4 886,60 00D 0 Sources of funds I MCToHMKMI cpeACTB - F015275 9 83 T787905- 1__ _ 1118641.95 1 118841,95 Refund to IBRD from DA during the perodl BoaMeutAeme cpeAcro co aeutLanbHO BblagenehHOO C4OTs Ha c1er rparTa -821,35 -821,35 Otherf/Dpyrne 0,00 0,00 0,00 Total Financing I W-oro no McroNHunav PeACeT 983 058,60 1 117820,60 1 11782060 Less: Erpenditures by Components / Pacxogi no momnoHeHTM Component 1: Development of the strategy of PFM reform and its implementation plan I KounoHeir 1: Papa(Jora cTpaerL1 pe4popMpoBaHHR Vr( nlnaIe ee peanmal911 352 581,17 357 239,60 357 239,60 Component 2: Development of design of FMIS 1KouoNeHT2: PaspaSoa amaeta MC10P 445 146,36 447 186,27 447 186,27 Component 3. Capacity development for project management? KovnoHer 3: Pmarre nOTe1-Lana APS ynpaBneuw npoeoTOM 186 717,67 309 894,73 309 894,73 TotalOExpendituresorTM 984 445,20 1 114 32060 114 320O Interestr nedi I poIeTbi 6aHKSa Closing Cash Batances per Bank Statements OrTaTOK AeHaxKHbix tpeMCTR Ha MOHel. DTmoO HOepMoAa no 6aHNOBCKtIM oinuCtiaM Designated account -tRD roan/ CnetManbHc BblAeJleHHbl ci6T- IBRD KpepeM 3500,00 3500,00 3 500,00 Transit account - Grant funds I TpaH-13ATHbiU CaeT - MCTOHK1 cpeacre 0,00 0000 0,00 Funds in transit / CpeAcTaa a nyra Total closing Cash Balances / VToro ocraTox eHeXJfxD CpeoCT3 ta KoHeu neplo'a 3500,00 33 500,00 Calculated account closing balance / PRCIT1a-hbA 68naHc cLe-ra H5 KOHe4 OTmoT-Oro nepwoa 3500,00 5 3 500,00 Agreed by / CornacoMano: Deputy Minister of Finance of the Republic of Belarns/ 3amecrrrem Matnrpa tmaucos Pecny6nHKn Benapycb Mr. Yuriy M. Seliverstov/ ION, CenHBCpcTOB Head of the Department of Financial, Economic Activity and Accounting of the Ministry of Finance of the Republic of Belarus/ HaqanLHu VpaRRetu3 mHaHcoB, yLera i oTemHocrH MUnAcsTepcra 4mtancoe Pecny6nsmet Benapye Ms. Larisa A. Ermakova/ AA. Epituoas Head of the Department for Prospective Development of the Ministry of Finance of the Republic of Belarus/ HaanbHHK YupangeutR nepenCrrTBnorO pasurHaH MHuncrepcTBa 4neancoa Pecny6nux" Beapych Mr. Andrey A. Narchuk/ A,A HapqyK Director of RUE "Data-Processing Center of the Ministry of Finance of the Republic of Belarus"/ ,upicrop Yf BLI MHH4aM" Mr. YuriyN, Zdanevich/ 10.H. 3.aeamq Head Of Accounting Department of RUE "Data-Processing Center of the Ministry of Finance of the Republic of Belaruis"/ nrmbig 6yxranTep YI 'HBJt Maunrna" Ms. Olga E. Sinishinal O,E, CHnnta APPROVED BY / YTBEPW)IAIO First Deputy Minis r of Finance of the Republic of Belarus/ 11epEndt 3ame 71. MHHHcTpa 4)HHaHCOB Peciny6nuii Eeapycb Mr Maksim L. Yermalovich/ K 4 ~ IUBIIM Improving Efficiency and Transparency of the Public Finance Management System in Belar Pro euref *4 eKHBHOCTH H flp03pa'HOCT1 CMcTOMbi ynpasneHMi 1 roCyga ICTBHKblM H ii4aHCa Y6JNKe ena[)ytL Uses of Funds I O7qeT 0 pacxod lHMN C CTB f1oeKTRa TF015275 for the Period from 01/0112016 to 0510712017 in USDis gonnapax CWA 3a nepHop c 01101/2016 no 0510712017 Project expen itures/PacxoAbi npomrra Total Amount Amount payable at the ' per Cumulative to datei reporting date still to be Projectcomponent SubcomponentActivtyKoMnaHeHT procurement Current PacOAb c (goodslservices accepted but mad IToK Projctompnpot beKio planlO6uLan quarter/OTeTHbtf HapacraotuHM not paid)lKpeHTopcKan npoeTca/meponpWTi,#ie cyMma nepLioA HTorOM Ha 3U01IKOHNOCTb CpeCTB 4n1 COrnaCHO OTeTHYI0 4ay (ToDap6ilycliyrn npHHRTbie, npegCToneiwx nnaHv3a0V l Ko He nnnpHHNIP iaTe)KeAl 1 2 3 4 51-3 Component 1: Development of the strategy of PFM reform and its implementation plan I KoMnoHeHT 1: Paspa60TKa CTpaTer$m pecoopmoposaHMR YVc nnaHa ee peano3aaqp 358 173,00 352 581,17 357 239,60 0,00 93,340 1.1 Consulting services to draft a Concept and a deatied plan for convergence of national public sector accounting and reporting system with the international Public $ectorAccounting Standards (IPSAS) and development of the Conceptual Design of a Uniled char! of accounts in the public sector, integrated with budget classification/1. I KoncynsmamsuoHNbe yCnyou c qonbv61 paipaioiru KoH4erreuu u demanbHeoO nnaHa no c6nuxKeHuio HaquoHn/bHoio cucmeube 6yxaanmepcKoao yLiema u omiemHocmu a o6uecmacHmom CeoKmope c Me)dynapoaHbimu cmaii6apmamu QuHaHcoe0 omvemnocrmu e c6u.ecmaeHnom ceKmope (MCOOOC) u paspe6omKa Kt4enmyannoeo duseda Ecduwoo nnar4a nemroa 6yxeanmepcKrOBo ywema a d - E n.a.a 241 680,00 241 680,00 241 680,00 0,00 0,00 1.2 Technical assistance the Ministry of Finance of the Repu btc of Belarus to improve budget execution through the Treasury/1.2 KoncynmamuaHan noAfoLp. no oKasanuio codeicmeun MuHucmepcmay Ounafcoe Pecnydnuku Benapycb a c0eepWecmeoaHuu _VJtge0oKOO DCanHeHuR Q1odNemQ 109 993,00 109 993,00 109 993,00 0,00 0,00 OperaingExpendilres/Onepaquonqre pacxodLi 6500,00 908,17 5566.60 0,00 933,40 Total Component /imoao KomnoneHm 1 358 173,00 352 581,17 357 239,60 0,00 933,0 Component 2: Development of design of FMIS I Komnolefr 2; Papa60TKa MM3a4Ha ACYO 452344,00 445 146,36 447 186,27 0,00 5 1573 2.1 Consulling services for the development ofa high-level information system design/2 1 KocynamaLU0HHre ycnyeu oa paapaomru ebicooyPoeHe8odsaiHau nOPManuoHHoqcucmeNHLD0CYr(P) 299 960,00 299 960,00 299 960,00 0,00 0,00 I echo cal assistance to mre usromer to orgamie me wor e or me Project Oflice in the context of capacity-building for project management/2.2 9oncynmaquonbe ycinyeu c L4eno OHasaHuR mexHsuecKoG nououlu Saxasnumy no opanuaqui;uu paCombi npoenxmHoo cqbuca a qacmu cosdaHuo nomenguana dnR ynpaancHR 148 484,00 144632,41 144 632,41 0,00 3 851,59 Operating expense/Onepaquomwe pacxodi 3900,00 553,95 2 593,86 0,00 1 306,14 Total Component 2/Mmtnoao KomnoHnem 2 452 344,00 445 146,36 447 186,271 000 6 187,73 omponent 3: Capaclty development for project management I KomnoHeHT 3 : PaaMTve noreHIlaa PfIl VnpawrneHiin npoeKTom 389 483,00 186 717,57 309 894,73 0,00 79 588,27 3. Procurement consultant services under the prjectl3.1 KoucynbmamueHaR nomoloi, no npoeedeMuio 3nKynOK Dn npoeKma 44715,00 29 179,98 43 374,54 0,00 1 340,46 3.2 Financiai management consuant services under the project3.2 KoHcynmamiV6HR nomoul a ynpaanaHuu fPuHacosbinu pecypcamu npoaeKma 32 518,00 16119,45 30829,63 0,00 1 688,37 3.3 PlU assistant (translator)/3.3 KoHcanmuraoesre ycnyou n opeanu3aquupaiombinpoeKmnoaoocpucaeceipomap&-nepeodvux) 43660,00 20102,09 39861,69 0,00 3798,31 3.4 Project audil/Ayaum npoexma 7000,00 3500,00 3500,00 0,00 3500,00 3.5 Accounting Software 1:0 Modification for project needs/3.5 4ora60m anpoepammig boyanmeocKomy vemvinR oeMg 1952,34 0,00 1 952,34 0,00 0,00 3.6. Workshops, conferences and media communication,6. Couumaph, Aom(repenHuu unpecceponpunmus 247 087,66 107 688,72 179 422,75 67664.91 3.7. Operatingoexpense/7 OnepaquaHHble pacxods 12550,00 10127,43 10 953.78 0,00 1 596,22 Total Component 3/H9moo.Ko oNIHOneu 3 389 483,00 186 717,67 309 894,73 79 588,27 Total Project Ependiture/ Hmozo pacxod. apoema 1 200 000,00 984 448,20 1 114 320,60 000 85679,40 Agreed by / CornacoBaRo: Deputy Minister of Finance of the Republic of Belans/ 3aMecTHTeJI MIMUMrpa iHnaucoB Pecny6nnn Beniapyci. Mr Yuriy M. Seliverstov/ IO.M. CesepeTou Head of the Department of Financial, Economic Activity and Accounting of the Ministry of Finance of the Republic of Belarus/ HaqaansHi YnpaenHna (uiHHacoB, yL[era H oTaerocr MinimcrepcTs 4imanrcon Pecny6nHKH EMupyCL Ms. Larisa A. Enmakoval flA. EphiaKoRa Head of the Department for Prospective Development of the Ministry of Finance of the Republic of Belarus/ Halanburc YnpaBnJemi niepciyTimoro prairK MimmTepcBa MHCO PCC4Y6,11KHSenaycbM r. Andrey A. Narrhusk/ A..Hapqyx Msrrricrepcs4 Quncon Pecny2muxr Beapyca rAA Director of RUE 'Data-Processing Center of the Ministry of Finance of the Republic ofBelarus"/ AHspeKrop VII "HBlJ MHfHJJa" Mr. Yuriy N, Zdanevichi lO.H. 3;XaHeBM1 Head Of Accounting Department of RUE "Data-Processing Center of the Ministry of Finance of the Republic of Belarus"/ DalHEbit 6yxmraiTcp YE1 "B01 MHHmsHa Ms. Olga E. Sinishina/ O.E. CuHnnHa A ~ P)KfAK) FirstL)e terofFnqu f epublic of Belarus/ rlepu3t rT rp H H Peeny6JINKH Benapych sim L Yennalovich/ : MNOJIOBH'I 2017 r. Improving Efficiency and Transparency of the Public Finance Mana t System in Blarus Project I flo3cuseHHe d eKTwBHCTH m npo3paHocTH CIICTembI ynpaBjneHH ro pCTaOHHbMH 4HaHCaMP8 Pecny6nVKe BeapyC6 Designated Account Statement / OT4eT 0 COCTOSIHN cneumanbHo BsuAeriemioro c4ea TF015275 for the Period from 01011216 to 0510712017 Ia repeo c f0101/2016 no 05/0712017 Iin USD/eaponnapax C11A . R ep o rtin g P e rio d1O r OTH 6br 1t n ep o A Opening balance at 01.01.2016/OcTaTOK AGHe)KHbIX epecCTB Ha Ha4TIo OTReTHoro 1 nepHoga 01.01.2016 4830,23 Advance of Grant funds during the period/Cyma anaHCOB ocTynMBeaR CO 2 cneLtHanbHO BbIeJleHHoro c'eTa 202 000,00 Amount of eligible expenditures paid during the present period/Cymma 3 CaHKQMOHMpoBaHHbIx paCXOAoB onna4eMHbIX B OTLeTHOM neptoge 96309,69 Amount of funds transferred to the transit account/Cymma geHeH itbIX cpeACTe 4 nepeqWCJneHHa1 Ha TpaH3MTHbifi cNeT 106199,19 Refund to IBRD from DA during the perlodlBo3meuleHHe cpecT co cneI4anbHO 5 16ileneHoro C4eTa Ha c4eT rpaHTa -821,35 6 Interest earmedl npoiet61 6aHKa 0,00 7 Service charges/CTo cm ycnyr 0,00 8 Differences arising in the reporting period/Pa3HMMa, BO3HMKlwas B OT'eTHoM nepmo4e 0,00 Calculated DA closing balancelPaciWTaHHblA ocTaTOK AeHe)KHbIx cpacTB Ha 9 crONaibHO Bi6teJleHHOM cHeTe 3 500,00 DA closing balance as at 05,07.2017 carried forward to next period - per bank statements/OcTaTOK 4He)KHbX CpeACTB Ha 06.07.2017 Ha crre;i4anbHO B6l1J1eHHOM 10 c4iere, nepeHeceHHbIA Ha cj1eAIyiouAti oT'eTH61A nepi,10 3 500,00 Difference between 9 and 1 0/Pa3H144a, me)txAynJL4HHRM14 9 LA 10 0,00 (ahould be zero or explained/goMnI-1a 6biTb paBHa HyJn?0 sht" o6bqCHeHa) LExplanation of any dscrepancy/06sen4o M06Wn PaMmiinw Hm -ecooTae-rTrii. Agreed by / CopqacoBaHo: Deputy Minister of Finance of the Republic of Belarus/ 3am.erxrenb MHmicTpa 4jmiHasHCOB Pccuy6nHKH Benapycrb Mr. Yuniy M. Seliversiov/ 1O.M. CeauacpcTroa Head of the Departmsent ofFinancial, Economic Activity and Accounting V of the Ministry of Finance of the Republic of Belarua/ Haift,HNK YnpaBsneHHm ra ujiccoB, yqera N oT'werocTH MMuHCTepraBa iaiioao Pecny6anKmp BcjTapyciL. Ma. Lars nA, Enmakova .fl.A. EPMaKOBa Head of the Department for Prospective Development of the Ministry of inance of time Republic of Belarns/ HawianatHK1 YrrpawnewmH nepcnelTxioro pa3BaTirq Director of RUE "Data-Processing Center of the Ministry Ade .Nrhk ..Hpy AmpKTo YT "HLt XH Ha"Mr. Yuriy N. Zdanevicb/ 10.H-. FonIeCBHq CetrIfh Ministry of Finance of the Republic of Belars"/ FnaaHilli 6yxranTep YrI "HBLJ MHfirijma" Ma. Olga E. Sinishina/ O.E. CHH)H[MHa I6396 APPROVED BY / YTBEPW)AAIO First Deputy t,inistEr of I;uance of the Republic ofBelarus/ 11epaf sLfr T Ic I MHHC1i t ilaHCOa Pecny6io4u Benapyem Mri M im L.Yermalovich/ ii a) ,\ < - ponosa 2017 r, Improving Efficiency and Transparency of the Public F'irince-vinapt Int System in Belarus Project I floaweHme ajeleKrlaHHOCTM 4 npo3paLIHOCTH cCTeMbi ynipanneimu roc0-yAiaperI6MM 4SHIHSHCaMH B PecnylllHKe 6Oeapycb Transit Account Statement / OT4eT 0 C6CTOiHHWK TpaH3MTHOro ceTa TF015275 for the Period from 01101/2016 to 05107/2017 3a nepmoA c 01/01/2016 no 0510712017 in USDIe gonnapax CWA Reporting Period/OT4eTH6li nepion Opening balance at 01.01.2016, including IOcTaTOK AeHo)KHblx cpegCTB Ha Ha4no 1 oTeTHoro nepmoga 01.01.2016, Banoan 56,37 Advance from DA during the period/Cymma aBaHCOB, nocTynmBwaq1 co cnLtmallbHO 2 mineneHHoro ceTa 106 199,19 Amount of eligible expenditures paid during the present periodlCyMMa 3 caHKLAOHMpOBaHHblX pacxoMoe onnaneHHaI a oTYeTHoM nepHoAe 106 255,56 4 RefundSao3MeueH e H4 CHatll6H0 8bigeleHHblI CqeT 0,00 5 Interest earned/npoeHT6i 6aHKa 0,00 6 Service charges/CTOLMMOCTb yenyr 0,00 7 Differences arising In the reporting period/Pa3Hmua, BD3HMKlaqs B OTLIeTHoM nepMoAe 0,00 Calculated closing balance/PacqmraHH6il 0CTaTOK9eHe)KHblX cpegCTB ha TpaH3aTHoM 8 cqere 0,00 DA closing balance as at 31.03.2015 carried forward to next period - per bank statements, including lOcraToK geHe)KHiX cpeACTB Ha 31.03.2015 Ha TPaH3HTHOM C40Te, nepeneceHHblR Ha CleqyoLiHA oneTHiA nepwop - cornaCHO 1361ntcKe 6aHKa, BKnOIaai 9 0,00 Difference between 8 and 9 /Paai4a me>rgy JH1RM14 8 W 9 0,00 (should be zero or explained/,onWHa 6blTb paBHa Hymno WJnA 06pcHHa) Explanation of any discrepancy/05bciee M05i1X paHM44 1 HeCOTaeTCTDWA: Agreed by / CoNiacoaHO: Deputy Minister of Finance of the Republic of Belarus/ 3aMecTen MmacTpa qffnaucoB Pecny6nui BenapycL Mr. Yuriy M. Seliverstov/ IO.M. CenineperoB Head of the Department of Financial, Economic Activity and Accounting of the Ministry of Finance of the Republic of Belarus/ Haaansx Ynpaaneimi 4nnancoa, yqera H orTerorH MH"crepcTaa iHaHGO Pecny6HKH Benapych Ms. Larisa A Emakova/ JlA. EpmaicoBa Head of the Department for Prospective Development of the Ministry of Finance of the Republic of Belarus/ HaqauHm Ynpannenig iepCneXTHBHoro pa3sHa MHHHcTepcTa Heaco Pecny6HKH Benapych Mr. Andrey A. Narchuk/ A.A. Hapqyx Director of RUE "Data-Processing Center of the Ministry ofFinance of the Republic of Belarus"/ AnpexTop VII "HBIJ M1iHqlNHa" Mr. Yuriy N. Zdanevich/ 10 H. 3Aauean Head Of Accounting Department of RUE "Data-Processing Center of the Ministry of Finance of the Republic of Belarus"/ Inasibil 6iyxcai-rep YET "HBI Mtinvujia" Ms. Olga B. Sinishinal O.E. CPHIuRai APPROVED BY / YTBEPWAAIO Firs Detyt Minister.of, Finance of the Republic of Belarus epin -a se9r n M nr/erpa 4HRCOB Pecny6JHKH SeJIapych Mr. Maksim. L.Yermalovich/ EpMonoHq 2017r. 1proving Efficiency and Transparency of the Public Finance Management System in1Belaru kojeb IfotblulHMS 3 9KTKBHOCTH H npo3pa4HOCTH CLCTeMbi YripanHwsi rocyAapECTeeH11bIMH 0WHaHCJ[MM03 Pqny611MKe senapyc6 TF015275 SOE Withdrawal Schedule/OTrT 0 CHwrrwn cpe9CB c wcnowobSOaHMSM Pacxo9H6Ix BeAomoCre for the Period from 0110112016 to 0510712017 In USDis gonnapax CWA 01101/2016-05/0712017 Component 1: Development of the strategy of Component 2: Development of design of Component 3: Capacity development Total I0Toro PFM reform and its Implementation planI FMIS 1 for project management / KomnOMHHr 1: Pa3&r)TKa CTpaTrermm KomnOHeNT 2: Pa3paiora AN3naHa 14CYQ KoMnOHSHT 3: Pa3BMTute noTeHL4ana 4peoMpOBpaHH1 YF(D m h5HS ee Amy ynpaBnsHMI1 npoeKTom CLM peank3aLAMM 10 22,97 745,67 34707,31 35475,95 14 98,42 176,80 19060,96 19336,18 19 125,49 80,73 53 279,19 53485,41 26 684,26 296,42 45 476,00 46 456,68 931,14 1 299,62 152 623.46 154754,22 Agreed by / CornaCOnano: Deputy Minister of Finance of the Republic of Belarus 3amecTirenr MHHncTpa @mnancos Pecny6HH Benapycb Mr. Yuriy M. Seliverstov/ I. M. C0an1epCToB Head of the Department of Financial, Economic Activity and Accounting of the Ministry of Finance of the Republic of Belaruas/ Ha,anhnux YnpaaneaR qnMancon, yseTa n OrVeTHoCTH MH[cTepcTBa nmancoa Pecny6an Benapycb. Ms Lanis A. Ernakov J1,A. EpmaioBa Head of the Department for Prospective Development of the Ministry of Finance of the Republic of Belarus/ Haqanbnux YnpaaeHns nepenei noro pa3BHTa M14HncTepCeR 4mnancoa Pecny6InUK Ecenapycb Me Andrey A. Narchuk/ A.A. HapMyK Director of RUE "Data-Processing Center of the Ministry of Finance of the Republic of Belarus"I AllpeKTop Y1l "4B4 MnH#Ha" Mr Yuriy N. Zdanevich/ IO.. 3naneBKs Head Of Accounting Department of RUE "Data-Processing Center of the Ministry of Finance of the Republic of Belarus"/ naaHblit 6yxranTep VII "HtBg Muanua" Ms. Olga E. Sinishina/ O.E, CanHunna Improving Efficiency and Transparency of the Public Finance Management System in Belarus TF015275 Explanatory notes to Financial Statements of the project named "Improving Efficiency and Transparency of the Public Finance Management System in Belarus" TF015275 for the period from January 1, 2016 to July 5, 2017 1. General information According to Grant Agreement dated April 8, 2014 between the World Bank and the Republic of Belarus represented by the Ministry of Finance of the Republic of Belarus, the Republic of Belarus a grant "Improving Efficiency and Transparency of the Public Finance Management System in Belarus" TF01 5275 (Project) has been provided to the Republic of Belarus. The total amount of funding received for the project implementation is US Dollars 1 200 000. In line with the Resolution of Council of Ministers of the Republic of Belarus dated April 18, 2014 No 369 "On approval of international technical assistance programme and projects" the project has been entitled as an approved international technical assistance project and has been registered by the Ministry of Economy of the Republic of Belarus as of April 24, 2014, registration No. 2/14/000703. The objective of the Project is to establish the basis for improving efficiency and transparency of the public finance management system in Belarus. The Project consists of three Components as follows: 1. Development of the strategy of PFM reform and its implementation plan. - Drafting a concept and a detailed plan for convergence of national public sector accounting and reporting system with the international public sector accounting standards (IPSAS) and developing of the conceptual design of a unified chart of accounts in the public sector, integrated with budget classification: contract completed. - Technical assistance to the Ministry of Finance of the Republic of Belarus to improve budget execution through the Treasury: contract completed. - Operational expenditures under Component 1. 2. Development of the design of the Government Financial Management Information System. - Development of a high level information system design: contract completed. - Technical assistance to the Customer to organize the work of the Project Office in the context of capacity-building for project management: contract completed. - Operational expenditures under Component 2. 3. Capacity development for project management. - Procurement consultant services: contract completed. - Financial management consultant services under the project: contract completed. - PlU assistant (translator): contract completed. - Workshops, conferences and media communication. - Project audit: contract is in progress - Accounting Software 1:C Modification for project needs: contract completed. - Operating expenses under Component 3. In conformity with the Order of the Ministry of Finance of the Republic of Belarus dated April 24, 2014 No. 162 "On the administrative matters of the international technical assistance project implementation" Data-Processing Center of the Ministry of Finance of the Republic of Belarus UE has been assigned as a project implementing agency. Data-Processing Center of the Ministry of Finance of the Republic of Belarus UE keeps accounting records and primary documents regarding the funds transferred to its accounts. 12 Improving Efficiency and Transparency of the Public Finance Management System in Belarus TF015275 Financial management for project funding has been conducted in line with the following guidelines: - World Bank Disbursement Guidelines for Projects dated May 1,'2006; - Standard Conditions for Grants made by the World Bank Out of Various Funds dated February 15, 2012; - Guidelines on Preventing and Combating Fraud and Corruption Financed by IBRD Loans and IDA Credits and Grants dated October 15, 2006 and revised in January 2011; - Grant Agreement and Disbursement Letter dated 8 April 2014 undermining special rules and mechanism of funding; - Order of the Ministry of Finance of the Republic of Belarus dated April 24, 2014 No. 162 "On the administrative matters of the international technical assistance project implementation"; - Project Operational Manual. 2. Accounting policy Fundamental accounting principles - the present Financial Statements of the Project are prepared on a cash basis, which complies with the requirements of International Accounting Standards developed by the Public Sector Committee of the International Federation of Accountants (IFAC). A project financing is deemed to be a source of the project's funds at the moment of receipt of funds. Project costs is deemed to be an application of project's funds at the moment of payment. Foreign currency transactions - the present Financial Statements are prepared in US Dollars. Transactions in other currency are transferred in US Dollars at the actual currency rate. Reporting base - the present Financial Statements are based on the accounting documents of Data-Processing Center of the Ministry of Finance of the Republic of Belarus UE and separate accounting records of Project assets. 3. The World Bank Funding The Project Designated Account is replenished by the World Bank based on Withdrawal Applications authorized by representatives of the Ministry of Finance of the Republic of Belarus. During the reporting period the financing was conducted to the Project Designated Account via advancing modality and direct payments. 4. Bank Accounts of the Project Project Bank Accounts are opened at "ASB Belarusbank" JSC. a. Project Designated Account in US Dollars The Project Designated Account No. 3012020620043 has been opened in US Dollars. The outstanding balance of the Designated Account equals USD 3 500 which will be utilized to pay for final audit of the project financial statements. b. Project Account in Belarussian roubles (transit account) The Project Account in Belarussian roubles No. 3012020620056 has been opened for US Dollars conversion in Belarussian roubles to make payments to national consultants and contractors. The outstanding balance of the Project Account in Belarussian roubles equals BYN 0. 5. Foundation of financing Project funds may be withdrawn to finance 100% of eligible expenses, consisting of Consulting Services, Audit, Training, Operating costs inclusive of Taxes. Meanwhile Operating costs shall not exceed 10% of the total amount of the Grant, training costs (including expenditures on study visits) shall not exceed 30% of the total amount of the Grant and expenditures on study visits in the framework of Training shall not exceed 10% of the total amount of the Grant. 13 Improving Efficiency and Transparency of the Public Finance Management System in Belarus TF015275 6. Foundation of financing Withdrawal applications Expenses incurred from January 1, 2016 to July 5, 2017 984 445.20 Total expenses incurred from January 1, 2016 to July 5, 2017 984 445.20 Funds received from IBRD from January 1, 2016 to July 5, 2017: 983 879.95 Replenishment of the Special Designated Account 202 000.00 Direct payments 781 879.95 Minus: Refund to the IBRD 821.35 Plus: Balance on the Special Designated Account at January 1, 2016 4 830.23 Plus: Balance on the Transit Account at January 1, 2016 56.37 Minus: Balance on the Special Designated Account at July 5, 2017 3 500.00 Minus: Balance on the Transit Account at July 5, 2017 0.00 Total expenses incurred from January 1, 2016 to July 5, 2017 984 445.20 14 K-Bel LLC ed together 4 t e \ Jexey Reneisky