96826 ADDITIONAL FINANCING FOR SECOND ON-FARM IRRIGATION PROJECT IDA CREDIT NUMBER 4982-KG IDA GRANT NUMBER H718-KG I M P L E M E N T E D BY PROJECT I M P L E M E N T A T I O N UNIT UNDER THE DEPARTMENT OF WATER RESOURCES AND MELIORATION OF THE MINISTRY OF AGRICULTURE A N D MELIORATION OF THE KYRGYZ REPUBLIC SPECIAL PURPOSE FINANCIAL STATEMENTS AND INDEPENDENT AUDITOR'S REPORT For the year ended 31 December 2014 BISHKEK March 2015 ADDITIONAL FINANCING FOR SECOND ON-FARM IRRIGATION PROJECT IDA CREDIT N U M B E R 4982-KG IDA G R A N T N U M B E R H718-KG TABLE OF CONTENTS Page STATEMENT OF M A N A G E M E N T ' S RESPONSIBILITIES FOR THE PREPARATION AND PRESENTATION OF THE SPECIAL PURPOSE FINANCIAL STATEMENTS 3 INDEPENDENT A U D I T O R ' S REPORT 4-5 SPECIAL PURPOSE FINANCIAL STATEMENTS For the year ended 31 December 2014: Statement of cash receipts and payments 6 Statement of expenditures per components 7 Notes to the special purpose financial statements 9-18 ANNEX 1. RECONCILIATION BETWEEN THE A M O U N T S SUBMITTED BY THE PIU DWR AND DISBURSED BY THE W O R L D BANK 19 2 STATEMENT OF MANAGEMENT'S RESPONSIBILITIES FOR THE PREPARATION AND PRESENTATION OF THE SPECIAL PURPOSE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2014 The management of the Project Implementation Unit under the Department of Water Resources and Melioration of the Ministry of Agriculture and Melioration of the Kyrgyz Republic (hereinafter: PIU DWR) is responsible for the preparation of the special purpose financial statements of "Additional Financing for Second On-farm Irrigation Project" (hereafter: the Project) financed by Financing Agreement IDA Credit Number 4982-KG and IDA Grant Number H718-KG that present fairly the Project's cash receipts and payments, expenditures per components, summary reports and SOEs, and designated account movements for the year ended 31 December 2014, in compliance with the International Public Sector Accounting Standard " Financial Reporting under the Cash Basis of Accounting" (IPSAS-Cash Basis) issued by the International Public Sector Accounting Standards Board (IPSASB) within the International Federation of Accountants (IFAC) and the Financial Management Manual for World Bank Financed Investment Operations (WB Guidelines). In preparing the special purpose financial statements, PIU DWR's management is responsible for: • Properly selecting and applying accounting policies; • Presenting information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable information; • Providing additional required disclosures for the year ended 31 December 2014. PIU DWR's Management is also responsible for: • Designing, implementing and maintaining an effective and sound system of internal controls, throughout the Project; • Maintaining adequate accounting records that are sufficient to show and explain the Project's transactions, and which enable them to ensure that the special purpose financial statements comply with I PSAS - Cash Basis and the WB Guidelines', • Taking such steps that are reasonably available to them to safeguard the assets of the Project and to affirm that funds received have been used in accordance with the Financing Agreement IDA Credit Number 4982-KG and IDA Grant Number H718-KG dated 20 May 2013, and World Bank related guidelines, with due attention to economy and efficiency, and only for the purposes for which the financing was provided; and • Preventing and detecting fraud and other errors. The special purpose financial statements for the year ended 31 December 2014 were authorized for issue on 13 March 2015 by the PIU DWR's Management. On behalf of the PIU DWR's Management: Saltanat Djumaeva Financial Manager 3 м uou-iifibabS" и<че it S O S - A U D I T " LTD INDEPENDENT AUDITOR'S REPORT N 9 On the special purpose financial statements of the Additional Financing for Second On-farm Irrigation Project for the year ended 31 December 2014 To the management of the Project Implementation Unit under the Department of Water Resources and Melioration of the Ministry of Agriculture and Melioration of the Kyrgyz Republic (hereinafter: PIU DWR) We have audited the accompanying special purpose financial statements of the "Additional Financing for Second On-farm Irrigation Project" (the Project) financed by Financing Agreement IDA Credit Number 4982-KG and IDA Grant Number H718-KG, which comprise the statement of cash receipts and payments, the statement of expenditures per components, for the year ended 31 December 2014, and a summary of significant accounting policies and other explanatory notes. Management's Responsibility for the Special Purpose Financial Statements The management of the PIU DWR is responsible for the preparation and fair presentation of these special purpose financial statements in accordance with International Public Sector Accounting Standard: Financial Reporting Under the Cash Basis of Accounting, (IPSAS-Cash Basis) issued by the International Public Sector Accounting Standards Board (IPSASB) within the International Federation of Accountants (IFAC), and Financial Management Manual for World Bank Financed Investment Operations, and for such internal control as management determines is necessary to enable the preparation of special purpose financial statements that are free from material misstatements, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express an opinion on these special purpose financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing (ISAs) as issued by International Auditing and Assurance Standards Board (IAASB) within the IFAC. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the special purpose financial statements are free from material misstatement. An audit involves performing procedures to obtain reasonable audit evidence about the amounts and disclosures in the special purpose financial statements. The procedures selected depend on the auditor's judgment including the assessment of the risk of material misstatement of the special purpose financial statements, whether due to fraud or error. In making those assessments, the auditor considers internal control relevant to the preparation and fair presentation of the special purpose financial statement in order to design audit procedures that are appropriate in the e p n r u З п р ф и р P|nq(jbu Uljuj(]u|i Uung|iiugi4uj6 UDr|.iui5 =R; bpLiuG 0037, U.ShqpwQjujQ 38/55; =lbn.' (+37410) 20 11 51; 3>ujgu' (+37410) 20 11 50; www.sosaudit.am; tL-фпит' info@sosaudit.am An Associate of the Crowe Horwath Business Alliance 38/55 A.Tigranyan, 0037 Yerevan, RA; Tel.: (+37410) 20 11 51; Fax: (+37410) 20 11 50; www.sosaudit.am; E-mail: info@sosaudit.am II u o u - u n b < № S " и<че н S O S - A U D I T " LTD circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. An audit also includes the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the special purpose financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Opinion In our opinion, 1. the special purpose financial statements present fairly in all material respects the cash receipts and payments for the year ended 31 December 2014 in accordance with IPSAS- Cash Basis; 2. funds have been used in accordance with the conditions of the Financing Agreement IDA Credit Number 4982-KG and IDA Grant Number H718-KG dated 25 July 2011 between the International Development Association (IDA) and the Kyrgyz Republic, and World Bank related guidelines, with due attention to economy and efficiency, and only for the purposes for which the financing was provided; 3. supporting documents, records and accounts have been maintained to support claims for reimbursement of expenditures incurred. Expenditures included in the withdrawal applications and reimbursed against are eligible for financing under the Financing Agreement IDA Credit Number 4982-KG and IDA Grant Number H718-KG dated 25 July 2011; 4. The Designated account used has been maintained in accordance with the provision of the Financing Agreement IDA Credit Number 4982-KG and IDA Grant Number H718- KG dated 25 July 2011, and World Bank related guidelines. "SOS-Audit" LLC 13 March 2015 £ p n m Зпр1|шр PhqCibu И[_|ш0и|1 U u n g | i u j g i | u j 6 U0rpjji5 =R; g. bpliiuO 0037, U.SfiqpwOjwD 38/55; 3tm.' (+37410) 20 11 51; biupu' (+37410) 20 11 50; www.sosaudit.am; tL-фпиш' info@sosaudit.am An Associate of the Crowe Horwath Business Alliance 38/55 A.Tigranyan, 0037 Yerevan, RA; Tel.: (+37410) 20 11 51; Fax: (+37410) 20 11 50; www.sosaudit.am; E-mail: info@sosaudit.am • | < > | • • > • | I I I I I I I I i I I I I I t I I i к I I [ I i I I I I Additional Financing for Second On-Farm Irrigation Project IDA Credit Number 4982-KG IDA Grant Number H718-KG S t a t e m e n t of cash receipts a n d p a y m e n t s For the year ended 31 December 2014 (Amounts are shown in US dollars) Note Actual Budget Variance Reporting Cumulative Reporting Cumulative Reporting Cumulative year as at 31 Dec 2014 year as at 31 Dec 2014 year as at 31 Dec 2014 TOTAL OPENING CASH 6 784,646 - Sources of Funds 10 IDA Credit Number 4982-KG 770,350 770,350 4,513,531 4,513,531 (3,743,181) (3,743,181) IDA Grant Number H718-KG 3,399,950 6,406,697 3,399,950 6,406,697 TOTAL FUNDS 4,170,300 7,177,047 7,913,481 10,920,228 (3,743,181) (3,743,181) Other income 11 10,281 28,168 Project Expenditures 9 1. Works, Goods, Consultants' services, Non-consulting services, including Audit, Training and Incremental Operating Costs 4,546,848 6,784.165 8.682,910 10,920,228 (4,136,062) (4,136,062) TOTAL PROJECT EXPENDITURES 4,546,848 6,784,165 8,682,910 10,920,228 (4,136,062) (4,136,062) Foregin currency gain/(Ioss) (6,715) (9,386) TOTAL CLOSING CASH 411,664 411,664 Baratali T y K o s h m a t o v Saltanat Djumaeva ExecutiveT)irector Financial Manager 13 M a r c h 2 0 1 5 T h e notes on p a g e s 9 - 1 8 f o r m an integral part of t h e s e special p u r p o s e financial statements. 6 Additional Financing for Second On-Farm Irrigation Project IDA Credit Number 4982-KG IDA Grant Number H718-KG Statement of expenditures per components For the year ended 31 December 2014 (Amounts are shown in US dollars) Actual Budget Variance Activity Cumulative as C u m u l a t i v e as C u m u l a t i v e as at Reporting year Reporting year Reporting year at 31 Dec 2014 at 31 Dec 2014 31 Dec 2014 A. Strengthening of association of w a t e r users 741,719 1,883,484 825,860 1,967,626 (84,142) (84,142) A/01/05. CSD operating expenses 44,035 52,035 221,460 229,462 (177,427) (177,427) A/02/05. OSD operating expenses 68,122 138,840 61,720 132,437 6,403 6,403 A/03/05. RSD operating expenses 300,387 527,841 158,150 385,605 142,236 142,236 A/04/01. International advisory services 142,377 198,091 294,200 349,913 (151,822) (151,822) A/04/02. Local advisers 37,450 73,259 24,990 60,799 12,460 12,460 A/04/03. Operating expenses of local advisers 1,161 3,704 - 2,543 1,161 1,161 A/04/04. Social contributions paid by an employer with respect to the international advisor 3,322 4,648 1,030 2,356 2,292 2,292 A/04/05. Social contributions of local advisers 6,211 12,317 4,310 10,416 1,901 1,901 A/05/01.Local training 138,654 180,484 60,000 101,830 78,654 78,654 A/06/03. Social contributions paid by an employer with respect to the training 44 44 _ A/06/01. Acquisition of goods, international for WUAs - 692,221 - 692,221 - - B. I n f r a s t r u c t u r e rehabilitation and modernization 3,516,915 4,415,820 7,583,570 8,482,475 (4,066,655) (4,066,655) В/О 1. Construction works 3,218,331 3,896,887 7,181,820 7,860,377 (3,963,490) (3,963,490) B/03. Designing (ORG) 76,404 194,584 72,720 190,899 3,685 3,685 B/04. Building inspection 50,014 58,064 65,450 73,500 (15,436) (15,436) B/05. Operating expenses of ORG 52,275 93,680 83,480 124,885 (31,205) (31,205) B/06. Supporting personnel 5,065 13,887 5,330 14,151 (264) (264) B/07. Mapping - - 150,000 150,000 (150,000) (150,000) B/08. Social contributions paid by an employer with respect to engineers 13,107 33,364 12,560 32,817 547 547 B/09. Social contributions of field engineers 8,489 9,878 11,290 12,679 (2,801) (2,801) B/10. Social contributions of support personnel 874 2,395 920 2,442 (47) (47) B/l 1. Purchase of equipment for topographical survey - 20,725 - 20,725 - - B/13. International training of engineers 92,356 92,356 - - 92,356 92,356 7 Additional Financing for Second On-Farm Irrigation Project IDA Credit Number 4982-KG IDA Grant Number H718-KG S t a t e m e n t of e x p e n d i t u r e s p e r c o m p o n e n t s For the year ended 31 December 2014 (Amounts are shown in US dollars) Actual Budget Variance Activity Cumulative Cumulative Cumulative Reporting year Reporting year Reporting year as at 31 Dec 2014 as at 31 Dec 2014 as at 31 Dec 2014 C. Project m a n a g e m e n t 288,214 484,861 273,480 470,127 14,734 14,734 C/01. Advisory services 134,089 180,752 157,920 204,585 (23,833) (23,833) C/02. Operating expenses of PIU 66,155 98,220 36,040 68,104 30,116 30,116 C/03. Purchase of office equipment and transport - 86,458 - 86,458 - - C/04. Supporting personnel 32,323 44,287 30,810 42,774 1,513 1,513 C/05. Audit services 5,569 6,289 3,700 4,420 1,869 1,869 C/06. M&O and other advisory services 1,526 1,719 12,450 12,643 (10,924) (10,924) C/08. Social contributions paid by an employer with respect to PIU 22,945 30,995 27,240 35,290 (4,295) (4,295) C/09. Social contributions paid by an employer with respect to PRA supporting personnel 5,575 7,639 5,320 7,384 255 255 C/10. Social contributions paid by an employer with respect to other advisory services 263 297 33 264 264 C/l 1.International consulting services - 6,667 - 6,667 - - C/12.Staff trainings 19,769 21,338 - 1,569 19,769 19,769 C/l4. Social contributions paid by an employer with respect to international consultants 200 200 _ _ Total 4,546,848 6,784,165 8,682,910 10,920,228 (4,136,062) (4,136,062) B a ratal i T / K o s h m atdv Saltanat Djumaeva ExecutiveDirector Financial Manager 13 M a r c h 2 0 1 5 T h e notes on p a g e s 9 - 1 8 f o r m an integral part of t h e s e special p u r p o s e financial statements. Additional Financing for Second On-Farm Irrigation Project IDA Credit Number 4982-KG IDA Grant Number H718-KG Notes to the special purpose financial statements For the year ended 31 December 2014 (Amounts are shown in US dollars) 1. General information 1.1. The Project According to the Financing Agreement between the Kyrgyz Republic and the International Development Association (IDA) on 25 July 2011, the IDA provided to the Kyrgyz Republic IDA Credit N u m b e r 4982-KG (the Credit) in the amount of 5,200,000 Special Drawing Rights ( S D R ) and IDA Grant Number H718-KG (the Grant) in the amount of 4,200,000 SDR. The Credit and the Grant are provided for implementation of "Additional Financing for Second Oil- farm Irrigation Project" (the Project). The payment currency of both IDA Credit 4982-KG and IDA Grant H718-KG is United States dollars. The Closing date of both IDA Credit 4982-KG and IDA Grant H718-KG is set 31 December 2015. The Grace Period for submitting withdrawal application for expenditures incurred before the Closing date is four months following the Closing dates: 30 April 2016. 1.2. The Project objectives The purpose of the Project consists in improvement of sustainable irrigation water supply, which will contribute to increase of agricultural productivity a m o n g farmers using irrigation. The Project comprises 3 components: Part 1: Strengthening of Association of Water Users (hereinafter, A W U ) a) Strengthening of A W U by providing the technical aid, training, technical loans for acquisition of vehicles, office equipment and field equipment. b) Strengthening of the Central Support Department of A W U in Bishkek as well as support departments at the oblast and region level by providing technical aid, training, vehicles and office equipment. Part 2: Infrastructure rehabilitation and modernization Rehabilitation and enhancement of irrigation and drainage systems under the supervision of A W U and elimination of critical deficiencies in the systems under supervision of Department of Water Resources and Melioration through provision of necessary works, goods, technical aid and training. Part 3: Project management Assistance to the Project in managing the projects, administration and coordination in procurement and finance management through provision of advisory services, audit services, monitoring and evaluation, training, goods and coverage of additional current expenses. 1.3. Budget The percentage of expenditures to be financed (inclusive of taxes) from IDA Credit N u m b e r 4982-KG and IDA Grant N u m b e r H718-KG is set 100%. 9 Additional Financing for Second On-Farm Irrigation Project IDA Credit Number 4982-KG IDA Grant Number H718-KG Notes to the special purpose financial statements For the year ended 31 December 2014 (Amounts are shown in US dollars) The total budget of the project is as follows: IDA Credit Number IDA Grant Number 4982-KG H718-KG Total USD* USD* Category SDR equivalent SDR equivalent USD 1. Works, Goods, Consultants' services, Non-consulting services, including Audit, Training and Incremental Operating Costs 5,200,000 7,541,758 4,200,000 6,406,696 13,948,454 Total 5,200,000 7,541,758 4,200,000 6,406,696 13,948,454 (*) Budgets U S D equivalents 011 IDA Credit N u m b e r 4982-KG and IDA Grant N u m b e r H718-KG with underlying currency of SDR, are calculated based on cumulative funds received in U S D plus, if any, U S D equivalent of undisbursed funds in SDR as at reporting date. S D R / U S D rate as at 31.12.2014 is set at 1.45 (31.12.2013: 1.54). 1.4. Project Implementation The Project is implemented by the Project Implementation Unit under Department of Water Resources and Melioration of the Ministry of Agriculture and Melioration of the Kyrgyz Republic (the PIU DWR). The PIU D W R was established for the purpose of the Project implementation by the Decree #118 dated 1 June 2006 of the Government of the Kyrgyz Republic. The address of the PIU D W R is 4a Toktonaliev str., Bishkek, 720055, Kyrgyz Republic. 10 Additional Financing for Second On-Farm Irrigation Project IDA Credit Number 4982-KG IDA Grant Number H718-KG Notes to the special purpose financial statements For the year ended 31 December 2014 (Amounts are shown in US dollars) 2. S u m m a r y of significant accounting policies 2.1. Preparation and presentation of financial statements The special purpose financial statements are prepared in accordance with the International Public Sector Accounting Standard: Financial Reporting Under the Cash Basis of Accounting (IPSAS-Cash Basis), issued by the International Public Sector Accounting Standards Board (IPSASB) within the International Federation of Accountants (IFAC), and presented in accordance with Financial Management Manual for World Bank Financed Investment Operations (March 2010): RM 3 - Financial Reporting and Auditing. The principal accounting policies applied in the preparation of these special purpose financial statements are set out below. These policies have been consistently applied to all the periods presented. 2.2 Cash basis of accounting Project financing is recognised as a source of project funds when the cash is received. Project expenditures are recognised as a use of project funds when the payments are made. 2.3 Reporting currency The reporting currency of these special purpose financial statements is United States dollars (USD). Project expenditures, other incomes and expenditures made denominated in KGS are translated into USD at the exchange rate determined by the account holder bank, OJSC "Commercial Bank Kyrgyzstan" (CBKG), on the date of transaction. Cash balances held in KGS at the reporting date are translated into USD at the exchange rate determined by the CBKG on that date. The effect of exchange rate changes on cash held on foreign currency is reported as separate line item in the statement of cash receipts and payments. The exchange rate defined by the CBKG as at 31 December 2013 is USD 1 = 49.2470 KGS. The exchange rate defined by the CBKG as at 31 December 2014 is USD 1 = 58.8865 KGS. 2.4. Taxes The taxes are paid in accordance with the tax regulation of the Kyrgyz Republic. 2.5. Budget Annual budgets for funding and expenditures are based on approved budget of the project agreement. Expenditure budget is created based on actual accumulated expenditures for the last period plus the updated procurement plans for the period. 1i Additional Financing for Second On-Farm Irrigation Project IDA Credit Number 4982-KG IDA Grant Number H718-KG Notes to the special purpose financial statements For the year ended 31 December 2014 (Amounts are shown in US dollars) Financing budget per fund source is created based on actual accumulated expenditures for the last period per funding source plus the share of funding for the coming period budgeted expenditures. 2.8. Petty cash Petty cash is cash held at authorized staff of the Project, including regional offices (OSD and RSD) to curry out cash expenditures for the Project purposes. The expenditures from the petty cash are recorded in the financial reports based on the expenditure reports submitted by the authorized staff. 12 Additional Financing for Second On-Farm Irrigation Project IDA Credit Number 4982-KG IDA Grant Number H718-KG Notes to the special purpose financial statements For the year ended 31 December 2014 (Amounts are shown in US dollars) 3. S u m m a r y of S u m m a r y Reports and SOEs IDA Credit N u m b e r 4982-KG During the reporting year there were no Summary Reports or SOEs approved regarding to IDA Credit Number 4982-KG. IDA Grant N u m b e r H718-KG Payment categories Total Withdrawal Withdrawal (1) W o r k s , Goods, C o n s u l t a n t s ' application application services, Non-consulting services, No value d a t e including Audit, T r a i n i n g and Incremental O p e r a t i n g Costs 14 05-Feb-2014 130,571.12 130,571.12 15 17-Mar-2014 191,310.48 191,310.48 16 15-Apr-20I4 124,449.64 124,449.64 17 16-Apr-20I4 211,547.98 211,547.98 18 02-Jun-2014 402,729.70 402,729.70 19 16-Jun-2014 285,175.41 285,175.41 20 09-M-2014 389,823.66 389,823.66 21 11 -Aug-2014 410,708.46 410,708.46 22 05-Sep-2014 269,350.41 269,350.41 24 14-0ct-2014 738,879.83 738,879.83 25 13-Nov-2014 426,678.46 426,678.46 27 17-Dec-2014 456,498.52 456,498.52 28 24-Dec-2014 132,576.30 132,576.30 Total 4,170,299.97 4,170,299.97 Additional Financing for Second On-Farm Irrigation Project IDA Credit Number 4982-KG IDA Grant Number H718-KG Notes to the special purpose financial statements For the year ended 31 December 2014 (Amounts are shown in US dollars) 4. Statement of Designated Account Both IDA Credit N u m b e r 4982-KG and IDA Grant N u m b e r H718-KG use the same bank account as a Designated Account. Financing received at Designated Account and expenditures made from it in previous periods were related only to IDA Grant N u m b e r H718-KG. Designated account number 1030120800001266 Bank O J S C "Commercial Bank Kyrgyzstan" Bank location 54a, Togolok Moldo St., Bishkek, Kyrgyz Republic Account currency USD I D A Credit IDA Grant Total Number Number 4982-KG H718-KG 1. Opening balance as at 01.01.2014 712,106 712,106 2. Add: opening discrepancy 56,323 56,323 3. IDA advance/replenishment 770,350 3,399,950 4,170,300 4. Less: Refund to IDA from DA 5. Present outstanding amount advanced to DA 770,350 4,168,379 4,938,729 6. DA closing balance as at 31.12.2014 334,051 49,064 383,1 15 7. Add: Amount of eligible expenditures paid 426,532 4,120,316 4,546,848 8. Less: interest earned (if credited to DA) 9. Total advance accounted for 760,583 4,169,380 4,929,963 10. Closing discrepancy (5)-(9) * 9,767 (1,001) 8,766 *Discrepancy consists as follows: 01.01.2014 31.12.2014 USD USD Cash on hand (in KGS) 5 12 Imprest amount (in U S D ) 55,134 4,514 Foreign exchange loss/(gain) 1,184 4,240 Total 56,323 8,766 14 Additional Financing for Second On-Farm Irrigation Project IDA Credit Number 4982-KG IDA Grant Number H718-KG Notes to the special purpose financial statements For the year ended 31 December 2014 (Amounts are shown in US dollars) 5. Balance Sheet The Balance Sheet discloses assets, liabilities and net assets of the Projects as at reporting date. It is prepared in accrual basis that is transactions are recognized when they occur (and not only when cash is received or paid). Note 31 Dec 2014 31 Dec 2013 USD USD ASSETS Cash 6 411,664 784,646 Prepayments 7 500,705 234,163 Total assets 912,369 1,018,809 LIABILITIES Payables 173,406 91,102 Total liabilities 173,406 91,102 NET ASSETS Cumulative income IDA Credit 4982-KG 770,350 IDA Grant H71 8-KG 6,406,697 3,006,747 Other income 28,168 17,888 7,205,215 3,024,635 Cumulative expenses Project expenses 6,456,866 2,094,257 6,456,866 2,094,257 Foreign exchange gain/(loss) (9,386) (2,671) Total net assets 738,963 927,707 6. Cash Account Underlying 31 Dec 2014 31 Dec 2013 held at Currency USD USD IDA Credit 4982-KG Designated Account CBK* USD 334,051 Cash-on-hand KGS 12 - Petty cash USD 4,514 - 338,577 IDA Grant H 7 1 8 - K G Designated Account CBK USD 49,064 712,106 Cash-on-hand KGS - 5 Petty cash USD - 55,134 49,064 767,245 Other Interest account CBK KGS 13,746 12,299 Tender account CBK KGS 8,972 4,347 Tender account CBK USD 1,305 755 24,023 17,401 411,664 784,646 (*) OJSC "Commercial Bank Kyrgyzstan". 15 Additional Financing for Second On-Farm Irrigation Project IDA Credit Number 4982-KG IDA Grant Number H718-KG Notes to the special purpose financial statements For the year ended 31 December 2014 (Amounts are shown in US dollars) 7. Prepayments 31 Dec 2014 31 Dec 2013 USD USD Prepayments on Works 500,204 234,163 Prepayments on Incremental Operating Costs 501 - 500,705 234,163 Prepayments up to 2 0 % are provided in accordance w i t h c o n c l u d e d c o n s t r u c t i o n w o r k s contracts. Prepayments outstanding as at 31 Dec 2014 are mostly not settled as at date of signing these special purpose financial statements, due to winter season. 8. Payables 31 Dec 2014 31 Dec 2013 USD USD Payables on Works 171,763 75,640 Payables on Incremental Operating Costs 1,643 15,462 173,406 91,102 Liquidity Damage Guaranties ( L D G ) of 5% is held from the completed service invoice for up to one year as guaranty for the quality of the work. Payables outstanding as at 31 Dec 2014 are mostly settled as at date of signing these special purpose financial statements. 9. Project Expenditures 9.1. Project expenditure financing per funds USD Reporting year Cumulative as at 31 Dec 2014 Sub-Category IDA Credit IDA Grant IDA Credit IDA Grant Total Total 4982-KG H718-KG 4982-KG H718-KG 1 .Goods - 166,389 166,389 - 965,792 965,792 2. Works 345,399 2,872,932 3,218,331 345,399 3,551,489 3,896,888 3.Consutants' services including audit 27,842 473,926 501,768 27,842 783,283 811,125 4.Training 9,615 241,164 250,779 9,615 284,607 294,222 5.1ncreamental operating costs 43,676 365,905 409,581 43,676 772,462 816,138 Total 426,532 4,120,316 4,546,848 426,532 6,357,633 6,784,165 Share of total 9% 91% 100% 6% 94% 100% 9.2. Project expenditure budget implementation Cumulative Expenditures Category as at 31.12.2014 Total budget Implementation USD USD % 1. Works, Goods, Consultants' services, Non-consulting services, including Audit, Training and Incremental Operating Costs 6,784,165 13,948,454 49% Total 6,784,165 13,948,454 49% 16 Additional Financing for Second On-Farm Irrigation Project IDA Credit Number 4982-KG IDA Grant Number H718-KG Notes to the special purpose financial statements For the year ended 31 December 2014 (Amounts are shown in US dollars) 10. Financing 10.1. I D A Credit N u m b e r 4982-KG Reporting Cumulative as period at 31 Dec 2014 USD USD Advances/ (advance recovery) 770,350 770,350 Direct Payments - - SOE and Summary Report - - Special Commitment - - Total 770,350 770,350 Total financing budget 7,541,758 Percentage of finance provided as at 31 Dec 2014 10% 10.2. IDA Grant N u m b e r H 7 1 8 - K G Reporting Cumulative as period at 31 Dec 2014 USD USD Advances/ (advance recovery) (770,350) 129,650 Direct Payments - - SOE and Summary Report 4,170,300 5,783,927 Special Commitment - 493,120 Total 3,399,950 6,406,697 Total financing budget 6,406,697 Percentage of finance provided as at 31 Dec 2014 100% 11. Other income Reporting Cumulative as period at 31 Dec 2014 USD USD Interest accrued 3,829 16,501 Tender fees 6,452 11,667 Total 10,281 28,168 17 Additional Financing for Second On-Farm Irrigation Project IDA Credit Number 4982-KG IDA Grant Number H718-KG Notes to the special purpose financial statements For the year ended 31 December 2014 (Amounts are shown in US dollars) 12. Schedule of Fixed Assets The schedule of fixed assets procured and received by PIU DWR for the Project implementation is follows: USD 31 Dec 2013 Additions Deductions 31 Dec 2014 O f f i c e fittings and equipment 20,725 145,472 166,197 Vehicles 69,258 - 69,258 Other 16,196 - 16,196 106,179 145,472 251,651 13. Event after reporting date 13.1. IDA Credit N u m b e r 4982-KG The application N 31 that includes expenditures relating to the reporting period in the amount of 387,059.32 USD was submitted to WB on 13 January 2015 and approved on 20 January 2015. 13.2. IDA Grant H718-KG The application N 32 that includes expenditures relating to the reporting period in the amount of 80,586.34 USD was submitted to WB on 13 January 2015 and approved on 21 January 2015. 14. Litigations There are no pending litigations related to the Project as at reporting date and as at approval date of these financial statements. 18 Additional Financing for Second On-Farm Irrigation Project IDA Credit Number 4982-KG IDA Grant Number H718-KG ANNEX I. R E C O N C I L I A T I O N B E T W E E N T H E A M O U N T S S U B M I T T E D BY T H E PIU D W R AND DISBURSED BY T H E W O R L D BANK For the year ended 31 December 2014 (Amounts are shown in US dollars) IDA Credit N u m b e r 4982-KG Application PIU D W R WB Difference E x p e n d i t u r e Category N USD USD USD Advances/ (advance recovery) 26 181,275.20 181,275.20 - 29 456,498.52 456,498.52 - 30 132,576.30 132,576.30 - Total 770,350.02 770,350.02 IDA Grant Number H718-KG Application PIU D W R WB Difference Expenditure C a t e g o r y N USD USD USD Advances/ (advance recovery) 22 (50,000.00) - 23 50,000.00 50,000.00 25 (181,275.20) 27 (456,498.52) 28 (132,576.30) 50,000.00 (770,350.02) 1. Works, Goods, Consultants' 14 130,571.12 130,571.12 - services, Non-consulting services, 15 191,310.48 191,310.48 - including Audit, Training and 16 124,449.64 124,449.64 - Incremental Operating Costs 17 211,547.98 211,547.98 - 18 402,729.70 402,729.70 19 285,175.41 285,175.41 - 20 389,823.66 389,823.66 - 21 410,708.46 410,708.46 - 22 269,350.41 269,350.41 - 24 738,879.83 738,879.83 - 25 426,678.46 426,678.46 - 27 456,498.52 456,498.52 - 28 132,576.30 132,576.30 - 4,170,299.97 4,170,299.97 Total 4,220,299.97 3,399,949.95 - 19