L The Ministry of Education and Science of the Republic of Kazakhstan Youth Corps Project Special-purpose financial statements for the period ended 31 December 2019 and Independent Auditor's Report LJo Contents INDEPENDENT AUDITOR'S REPORTINDEPENDENT AUDITOR'S REPORT STATEMENT OF NIANAGEMENT'S RESPONSIBILITIES FOR THE PREPARATION AND APPROVAL OF THE SPECIAL-PURPOSE FINANCIAL STATEMENTS SUMMARY OF SOURCES AND USES OFFUNDS ......................................................................................... 1 USES OF FUNDS BY COMPONENT AND EXPENDITURE TYPE ...............................................................3 1. Inform ation on the Project ............................................................................................................................... 5 2. A ccoun ting policies .................................................................................-.....................................-.- ...-....-.-.. ------ 8 3. P o ec u d4............Project..........................accounts.................................8 4. P roject accoun ts .................... I.................................................................-.......-........ I.. -............ -.....-..-......-..........8 5. Reconciliation between the reported amounts received by the Project from the World Bank and paid by 6. SO E W ITH DRA W AL Statem e nt .............................................................................................................. 10 7. D esignated account Statem ent ......................................................................................................................... 11 Director IAC Centeraudit -Kazakhstan LLP (S e udit license MFU No.00000 17 dated 27 December 1999) V. V. Radostovets 29 May 2020 To the Ministry of Education and Science of the Republic of Kazakhstan Youth Corps Project Management Unit INDEPENDENT AUDITOR'S REPORT Opinion We have audited the special-purpose financial statements of the Ministry of Education and Science of the Republic of Kazakhstan (MOES) on 'Youth Corps Project' (the Project), financed by the International Bank for Reconstruction and Development (World Bank) as part as Grant Agreement No.TF014174 dated 10 September 2015 concluded between the Republic of Kazakhstan and World Bank (the Agreement) which comprise the summary of sources and uses of funds, uses of funds by component and expenditure type, statement of expenditure (SOE) withdrawal statement, designated account statement for the period ended from 1 June 2016 to 31 December 2019 and for the year ended 31 December 2019 and as at 31 December 2019 and disclosures of accounting policies and other notes. In our opinion, the accompanying special-purpose financial statements present fairly, in all material respects, the financial position of the Project as at 31 December 2019 and the funds received and used as part of the Project for the period from 1 June 2016 to 31 December 2019 in accordance with International Public Sector Accounting Standard, Financial Reporting under the Cash Basis of Accounting (Cash Basis IPSAS). 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 Financial Statements section of our report. We are independent of the Project and World Bank in accordance with the International Ethics Standards Board for Accountants' Code of Ethics for Professional Accountants (IESBA Code), and we have fulfilled our other ethical responsibilities in accordance with 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 for the special-purpose financial statements Management of Finance Department of the MOES and Project Management Unit (PMU) is responsible for the preparation and fair presentation of these special-purpose financial statements in accordance with Cash Basis IPSAS, and for such internal control as management determines is necessary to enable the preparation of the special-purpose financial statements that are free from material misstatement, whether due to fraud or error. Auditor's responsibilities for the audit of the special-purpose financial statements Our objectives are 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 the basis of these special-purpose financial statements. As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional skepticism throughout 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, 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 internal control; - evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management: - evaluate the overall presentation, structure and content of the special-purpose financial statements, including the disclosures, and whether the special-purpose 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. Auditor V. V. Vladimirov (Auditor's Qualification Certificate No. McD-0000303 dated 22 Dec 19, Al-Farabi Ave Multifunctional Centre Nurly Tau v A B, 3 Floor, off 301, 302 Almaty Republic of Kazakhstan. a4- 2 STATEMENT OF MANAGEMENT'S RESPONSIBILITIES FOR THE PREPARATION AND APPROVAL OF THE SPECIAL-PURPOSE FINANCIAL STATEMENTS Management of Finance Department of the MOES and PMU are responsible for the preparation of the special-purpose financial statements that present fairly. in all material respects, the financial position of Youth Corps Project (the Project) as at 31 December 2019. and the funds received and used as part of the Project for the year ended 31 December 2019 in accordance with International Public Sector Accounting Standard, Financial Reporting under the Cash Basis of Accounting (Cash Basis IPSAS). In preparing the special-purpose financial statements the management is responsible for: * selecting suitable accounting principles and applying them consistently; * furnishing information, including accounting policy data in the form that enables information which is relevant, reliable, comparable and intelligible; * compliance with Cash Basis IPSAS and disclosing additional information in cases when compliance with Cash Basis IPSAS is insufficient for understanding by the special-purpose financial statements users' of influence of some or other transactions, as well as other events or conditions on the Project. Management of PMU is also responsible for: * designing, implementing and maintaining an effective and sound system of internal controls throughout the Project; * maintaining accounting records in the form which allows to disclose and describe the Project's transactions, as well as to disclose, with reasonable accuracy at any time, the financial position of the Project and ensure the compliance of the special-purpose financial statements with Cash Basis IPSAS on the basis of which the special- purpose financial statements have been prepared; * taking measures within its competence to safeguard the assets; and a detecting and preventing fraud, errors and any other irregularities. These special-purpose financial statements for the period ended 31 December 2019 were authorized on 29 May 2020. Persons signed this statement and special-purpose financial statements under the Project were authorized by Orders of the Minister of Education and Science of the Republic of Kazakhstan No. 177 dated 24 April 2018, No.424 dated 26 September 2019 and No. 477 dated 31 October 2019. Executive Secretary of the Ministry of Education and Science of the Republic of Kazakhstan K. M. Sarsembayev Director of Finance and Public Procurement Department of the Ministry of Education and Science of the Republic of Kazakhstan G. S. Shakayeva Director of Technical and Vocational Education Department of the Ministry of Education and Science of the Republic of Kazakhstan N. Zh. Ospanova Project Coordinator G. K. Yeskendirova MINISTRY OF EDUCATION AND SCIENCE OF THE REPUBLIC OF KAZAKHSTAN. YOUTH CORPS PROJECT SPECIAL-PURPOSE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2019 (in US doLlars) Approved by wI VI ~Executive Secretary ucation and Science blic of Kazakhstan M. Sarsembayev 29 May 2020 SUMMARY OF SOURCES AND USES OF FUNDS for the year ended 31 December 2019 From beginning of the project to 31 December 2019 2018 2019 I. Opening Cash Balances: Designated Account (World Bank Loan in US dollars) 382,216 229,186 Designated Account (World Bank Loan in Tenge) 1,846 490 Total Opening Cash Balance 384,062 229,676 I. Add: Sources of Funds Direct Payments to Coordinating Agency (CA) 4,579,439 5,363,346 13,227,177 Designated Account Replenishment 2,130,500 1,552,000 6,496,500 Other Ad for the period 6,709,939 6,915,346 19,723,677 Ell. Less: Uses of Funds 1. Support the Training Program for Community- based service learning and Life Skills Development, including: 6,597,597 6,448,853 17,927,293 1.1 Subproject Grants and Subsistence Stipends for Community-Based Service Learning) 4,579,439 5,075,715 12,939,546 1.2 Life Skills Development and Project Management Training 2) 1,133,946 654,088 2,850,511 1.3 Promote the Development and Implementation of Pilot Approaches to Effective Information and Communication Campaign with Vulnerable Young People 140,049 131,027 277,202 1.4 Coordination, Communication, and Accountability, Paid from Grant Account 245,005 102,517 433,373 L- 1.4 Coordination, Communication, and Accountability, Paid from Operating Account 499,158 485,506 1,426,661 2 Support Institutional Development of the Ministry ofEducation and Science of the Republic of Kazakhstan for Youth Policy Implementation, &AN including: 77,905 678,421 2.1 Support the Development of Institutional Framework for Youth Policy Implementation, Coordination, and Evaluation Activities 77,905 383,149 2.2 Support the Development of Training Program for and Outreach to Senior Secondary Students 295,272 3. Project Management, Monitoring, and Evaluation Activities, including: 235,405 234,111 857,031 3.1 Project Management Unit Support 223,552 220,353 831,420 L including: Reimbursable expenses on business trips 8,314 4,145 27,730 L Refunded reimbursable expenses on business trips (5,503) L MINISTRY OF EDUCATION AND SCIENCE OF THE REPUBLIC OF KAZAKHSTAN. YOUTH CORPS PROJECT SPECIAL-PURPOSE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2019 (in US dollars) From beginning of the project to 31 December 2019 2018 2019 Commissions of the bank 139 246 1,785 Non-consulting services 70,562 63,769 176,160 Training 11,973 11, 97 3 Telecommunication services 1,419 I,95 4,447 Goods 7,041 32,927 Consultants' services 117,119 103,169 473,694 Operating costs 25,999 28,415 108,207 32 Conduct of annual audit 11,853 13,758 25 611 Expense for the period 6,833,002 V 6,760,869 19,462,745 Foreign exchange difference 22 (9 1) 89 Closing Cash Balance Designated Account (World Bank Loan in US dollars) 260,876 382,216 260,876 Designated Account (World Bank Loan in Tenge) 145 1,846 145 Total Closing Cash Balance 261,021 138062 261,021 For reference: ') including direct payments balance on the Grant Account of the CA in the amount equivalent to 214,387 thousand Tenge at 31 December 2019 (513,909 thousand Tenge at 31 December 2018); 2) including the Operating Account's balance of the CA in the amount equivalent to 24 thousand Tenge at 31 December 2019(81 thousand Tenge at 31 December 2018). These special-purpose financial statements were authorized for issue on 29 May 2020. Director of Finance and Public Procurement Department of the Ministry of Education and Science of the Republic of Kazakhstan G. S. Shakayeva Director of Technical and Vocational Education Department of the Ministry of Education and Science of the Republic of Kazakhstan N. Zh. Ospanova Project Coordinator G. K. Yeskendirova The Notes on pages 5 to 11 are an integral part of the special-purpose financial stat L 6 6 6 2 MINISTRY OF EDUCATION AND SCIENCE OF THE REPUBLIC OF KAZAKHSTAN. YOUTH CORPS PROJECT SPECIAL-PURPOSE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2019 (in US dollars) Approved by Executive Secretary Education and Science blic of Kazakhstan K. M. Sarsembayev 29 May 2020 USES OF FUNDS BY COMPONENT AND EXPENDITURE TYPE oono6 for the year ended 31 December 2019 Actual Budget 0 Variance From beginning From beginning for reference: for From beginning Components of the project to of the project to the whole period 2019 of the project to 31 December 31 December of project 31 December 2019 2019 implementation 2019 Development of Youth Corps Project 6,833,002 19,462,745 6,833,002 19,462,745 21,763,000 1. Support the Training Program for Community-based service learning and Life Skills Development ,including: 6,597,597 17,927,293 6,597,597 17,927,293 20,000,000 1.1 Subproject Grants and Subsistence Stipends for Community-based service learning 4,579,439 12,939,546 4,579,439 12,939,546 14,509,733 1.2 Lire Skills Development and Project Management Training 1,133,946 2,850,511 1,133,946 2,850,511 3,034,604 1.3 Promote the Development and Implementation of Pilot Approaches to Effective Infornation and Communication Campaign with Vulnerable Young People 140,049 277,202 140,049 277,202 348,370 1.4 Coordination, Communication, and Accountability, Paid from Grant Account 245,005 433,373 245,005 433,373 480,228 1.4 Coordination, Communication, and Accountability, Paid from Operating Account 499,158 1,426,661 499,158 1,426,661 1,627,065 2. Support Institutional Development of the Ministry of Education and Science of the Republic of Kazakhstan for Youth Policy 678421 678,421 681,325 Implementation, including: 2.1 Support the Development of Institutional Framework for Youth Policy Implementation, Coordination, and Evaluation Activities 383,149 383,149 386,025 2.2 Support the Development of Training Program for and Outreach to Senior Secondary Students 295,272 295,272 295,300 3. Project Management, Monitoring, and Evaluation Activities, including: 235,405 857,031 235,405 857,031 1,081,675 3.1 Project Management Unit Support 223,552 831,420 223,552 831,420 1,025,675 Reimbursable expenses on business trip 8,314 27,730 8,314 27,730 Refunded reimbursable expenses on business trip (5,503) (5,503) Commission of the bank 139 1,785 139 1,785 Non-consulting services 70,562 176360 70,562 176,160 Training 11.973 11,973 3 MINIS I'R% 01, ED(('AI ION AND S(IIEN(E YOiiUTH1UO.C01 A.KISA. 0)1 CORPS PROJECT SPEC IAL-P()JRPOSE FINANCIAL, STATEMIENTS FORT11E PERIOD ENDED 31 DECEMBER 20119 (in (IS dolla3rs) Actual Budget "Variance Components bni ng From beginning for reference: for From beginning 2019 3! December 2019 ofthe project to the whole period 2019 of the project to 31Dcebr31 December of project 31 December 2019 2019 implementation 2019 Telecommunication services 1,419 4,447 1,419 4,447 Goods 32,927 32,927 Consultants'services 117,119 473,694 117,119 473,694 Operating expenses 25,999 108,207 25,999 108,207 3.2 Conduct ofannual audit 11,853 25,611 11,853 25,61 56,000 T e approved budget was not allocated over years of the project implementation on the main portion of expenses, and therefore the data for 2019 and for the period from the project beginning arc stated within actual costs, if actual costs do not exceed the budgeted costs. These special-purpose financial statements were authorized for issue on 29 May 2020. Director of Finance and Public Procurement Department of the Ministry of Education and Science of the Republic of Kazakhstan Director of Technical and Vocational Education Department of the Ministry of Education and Science of the Republic of Kazakhstan a 2 N. Zh. Ospanova Project Coordinator G. K. Yeskendirova The Notes on pages 5 to II are an integral part of the special-purpose financial stat nent 4 MINISTRY OF EDUCATION AND SCIENCE OF THE REPUBLIC OF KAZAKHSTAN. YOUTH CORPS PROJECT NOTES TO SPECIAL-PURPOSE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (in US dollars) 1. Information on the Project Grant Agreement No.TF014174 'Youth Corps Project' entered into between the Republic of Kazakhstan and the International Bank for Reconstruction and Development (the Agreement) was signed on 10 September 2015 and ratified by Law of the Republic of Kazakhstan No. 454-V 3PK dated 18 February 2016. The objective of the Project is to stimulate involvement of young people, especially socially vulnerable groups, in the life of the community, as well as life skills development through the Training Program for Community-based Service Learning. The Project life-cycle: 2016-2020. The Project is divided into the following parts: Component 1: Support the Training Program for Community-Based Service Learning and Life Skills Development a) Provision of: (i) sub-grants to entities rendering the services that meet the established requirements and (ii) sub- grants and social stipends for young people groups that meet the established requirements for implementation of subprojects for commumity-based service learning in accordance with criteria for selection and manual on project proposals provided for in the Project Operational Manual. b) Training of young people who meet the established requirements for life skills development and project management, c) Promote the development and implementation of pilot approaches to effective information and communication campaign with vulnerable young people to encourage the participation of these youth groups in the activities envisaged in component 1 (a) and I (b) above. d) Organization of activities for coordination, communication and accountability through the development and implementation of: (i) information and communication campaign; and (ii) feedback and resolution mechanism in accordance with the requirements and criteria specified in the Project Operational Manual. Component 2: Support institutional development of the Ministry of Education and Science of the Republic of Kazakhstan for youth policy implementation a) Support the development of institutional framework for youth policy implementation, coordination, and evaluation activities. b) Support the development of training program for and outreach to senior secondary students. Component 3: Project Management, Monitoring, and Evaluation Activities. a) Support the Project Management Unit in carrying out project management activities, monitoring over the activities of the Coordinating Agency and monitoring and evaluating the Project. b) Conduct of annual audit. The Project is wholly financed at the expense of funds provided by the World Bank. The total amount of financing provided by the Agreement comprises 21,763,000 US dollars, including: - for Component 1 implementation - 20,000,000 US dollars; - for Components 2 and 3 implementation - 1,763,000 US dollars. The implementation of the Project, except for the Agreement, is governed by the following documents: - Financial Management Manual for World Bank-Financed Investment Operations (March 2010); - World Bank Disbursement Guidelines and Disbursement handbook (2006); - Procurement Guidelines of the World Bank; - Standard terms for grants provided by the World Bank from various funds, dated 15 February 2012; - Order of the Minister of Education and Science of the Republic of Kazakhstan No. 232 dated 30 March 2016 "On the Implementation of Youth Corps Project" and other regulatory documents of the Ministry of Education and Science of the Republic of Kazakhstan; - Project Operational Manual; - Community Procurement Handbook. During the reporting periods, the PMU was established as part of the Project implementation, which manages the Project under the overall supervision of the Technical and Vocational Education Department (TVE) of the MOES. The PMU is located at the following address: 25, Syganak Street, off. 10/1, 10 floor, Business Center Ansar, Nur-Sultan. In order to implement Component I in the capacity of the CA, the consortium of entities was chosen as a result of the competition: Legal Entities Society in the form Association of "Youth Congress of Kazakhstan" (leader of the 5 L MINISTRY OF EDUCATION AND SCIENCE OF THE REPUBLIC OF KAZAKHSTAN. YOUTH CORPS PROJECT NOTES TO SPECIAL-PURPOSE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (in US dollars) consortium), Legal Entities Society 'National Volunteer Network" and Private Institution "Republican Headquarters of Youth Labor Groups 'Zhasyl El'. The appropriate agreement was signed with the consortium on 9 January 2017. In 2019, the round III of Project was launched in Akmola, Atyrau, West-Kazakhstan, Mangystau regions, as well as in Almaty and Nur-Sultan cities. The round III started in August 2019, and completed in February 2020. Financing of this stage was completed in 2020 in full. The following results were obtained during the implementation of the round III for the reporting periods: 1) the total number of selected sub-projects included in the list of grantees according to the results of randomization was 1,063. As at the completion date of the Project round III, the total number of sub-projects was 919. The first tranches in the amount of 50% of the grant sum were paid to 1,033 sub-projects. The second tranches in the amount of 50% of the grant sum were paid to 929 sub-projects; 2) as of the completion date of the Project round III the total number of the Project beneficiaries was 2,987 people. All participants of the grant program were paid a subsistence stipend in the amount of 40,000 Tenge (pupils, graduates of TVE, students and other participants) and 60,000 Tenge (graduates of universities); 3) the first stipend (for June) was paid to 2,896 participants, the second stipend (for July) - 2,884 participants, the third stipend (for August) - 2,870 participants, the fourth stipend (for September) - 2,755 participants, the fifth stipend (for October) - 2,837 participants, and the sixth stipend (for November) - 2,475 participants . 4) primary training of mentors was held in the centers of regions of the round III implementation during 21 -23 June 2019. Totally, 19 master-trainers were involved, 152 mentors and 10 representatives of host organizations took part in the training; 5) the first stage of primary training of the participants was carried out during 27 -30 June 2019, the second stage of primary training of the participants was carried out during 4-7 July only for participants of three west regions , since there were registered a large number of participants and a lack of mentors in these regions. Totally, 2,933 beneficiaries took part in the trainings (from 0.5 to 4 days), the training was considered as passed by 2,827 beneficiaries (at least 3 days): in Nur-Sultan - 150 beneficiaries, in Almaty - 212 beneficiaries, in Akmola region - 346 beneficiaries, in Atyrau region - 723 beneficiaries, in the West -Kazakhstan region - 605 beneficiaries, in Mangistau region - 791 beneficiaries. Furthermore, 481 beneficiaries completed online training, of which 214 beneficiaries had not attended the training for good reason. There were 29 beneficiaries in Nur-Sultan, 55 beneficiaries in Almaty, 62 beneficiaries in Akmola region, 71 beneficiaries in Atyrau region, 75 beneficiaries in the West-Kazakhstan region, and 189 beneficiaries in Mangistau region. In total, primary training covered 99% of beneficiaries; 6) Advanced training of mentors was held in the regional centers of the round III during 18-20 October 2019. Totally, 13 master-trainers were involved, 116 mentors took part in the training; 7) 2019 advanced training of the Project beneficiaries was carried out during 31 October -3 November and during 7-10 November. Totally, 2,596 beneficiaries took.part in trainings(from 0.5 to 4 days) : in Nur-Sultan - 102 beneficiaries, in Almaty - 161 beneficiaries, in Akmola region - 300 beneficiaries, in Atyrau region - 643 beneficiaries, in West-Kazakhstan region - 558 beneficiaries, in Mangystau region - 730 beneficiaries. Furthermore, 285 beneficiaries completed online training, of which 213 beneficiaries had not attended the training for good reason. There were 25 beneficiaries in Nur-Sultan, 15 beneficiaries in Almaty, 24 beneficiaries in Akmola region, 20 beneficiaries in Atyrau region, 26 beneficiaries in the West-Kazakhstan region, and 103 beneficiaries in Mangystau region. In total, advanced training covered 89% of beneficiaries; 8) Regional forums of projects and exhibitions were held on 11-12 November 2019 in regional centers of round IIregions, where participants shared with the results of their projects, presented products at the exhibition and demonstrated their skills during master-classes; 9) A forum of the 'Youth Corps Project Best Practices' was held on 25-26 November 2019 in Nur-Sultan. Representatives of central and regional government bodies, Project beneficiaries, mentors, representatives of HO and other stakeholders took part in the forum; 10) The round III of Project Component 1 was completed in 2020, all participants were notified accordingly. In 2020, the Project round IV is implementing in Almaty and Karaganda regions. As part of the round TV implementation, the following activities were carried out: 1) selection of host organizations (HO) for the round IV was held, the memorandums were signed with 15 organizations. 2) On 4 February 2020. a webinar for selected host organizations was held. 3) On 14 and 19 February 2020. webinars for the staff of regional offices of the CA were held in in Almaty and Karaganda regions. 4) On 1 March 2020, the competition of mentors was completed. The Committee on Selection and Coordination of Mentors reviewed 135 applications: 80 candidates from Almaty region and 55 candidates from Karaganda region. 6 MINISTRY OF EDUCATION AND SCIENCE OF THE REPUBLIC OF KAZAKHSTAN. YOUTH CORPS PROJECT NOTES TO SPECIAL-PURPOSE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (in US doUars) 5) On 10 March 2020, the first stage of the selection of sub-projects was completed. During 13 to 24 March, the Evaluation Committee reviewed the submitted applications, as a result 746 sub-projects were selected: in Almaty region - 466 sub-projects, in Karaganda region - 280 sub-projects. 6) On 9 March 2020, the competition for the selection of master- mentors was completed, as a result 10 applications were selected. 7) Briefings on the Youth Corps Project launching were held in Karaganda and Almaty regions with support of regional communications centers and local executive bodies . Currently, there are a number of unaccounted grants on closed sub-projects. As of May 25, 2020, the total amount of unsupported sum is 36,589,719 Tenge for 102 unaccounted grants, including: - for 2017 sub-projects - 1 sub-project with the unsupported sum in the amount of 376,929 Tenge; - for 2018 sub-projects - 47 sub-projects with the unsupported sum in the amount of 17,579,723 Tenge; - for 2019 sub-projects - 54 sub-projects with the unsupported sum in the amount of 18,633,067 Tenge. Currently, measures to refund the unsupported amounts on unaccounted grants are carried out in the framework of judicial -claim activities. The implementation of Project Component 2 was completed in 2018. In 2019, no work was carried out on this Component. According to Letter of the Ministry of Education and Science of the Republic of Kazakhstan No. 2-13-6/1203-H dated 27.03.2020 due to the state of emergency declared by the President of Kazakhstan from 16 March to 15 April 2020, the implementation of the Project was temporarily suspended. Information on suspension was sent to all participants who passed two stages of selection. u7 -Li L MINISTRY OF EDUCATION AND SCIENCE OF THE REPUBLIC OF KAZAKHSTAN. YOUTH CORPS PROJECT NOTES TO SPECIAL-PURPOSE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (in US dollars) 2. Accounting policies Summary of significant accounting policies These special-purpose financial statement of the Project has been prepared under the cash basis of accounting in A..J accordance with the requirements of IPSAS, developed by the International Public Sector Accounting Standards Board r under IFAC. A-0, These accounting principles are consistently applied to all reported periods. Basis of preparation The basis of preparation is the accounting data of the PMU. Accounting for Project operations is separated from accounting for other transactions of the MOES, the accounting records are maintained in Tenge. Presentation currency These special-purpose financial statements are presented in US dollars. Transactions in Tenge are translated to US dollars at the actual sales exchange rate of USD for the purposes of special-purpose financial statements. 3. Project funds The funds of the Project were provided by the World Bank according to applications signed by authorized representatives of the Ministry of Education and Science of the Republic of Kazakhstan. In the reporting periods the financing was performed through advance payments to the designated account of the Project on the basis of the SOE and through direct payments to the CA's account. Information is provided in the SOE withdrawal statement (Note 6). 4. Project accounts The Project accounts are opened with Halyk Bank of Kazakhstan JSC and have the following details: - Project designated account Project designated account No. KZ386017111000000465 in US dollars (ex-account No. KZ479261501160513006 in US dollars) The balance of funds on the special account at 31 December 2019 is 261,021 US dollars. The report on the designated account is presented in Note 7. - Project account in Kazakhstani Tenge The Project account in Tenge No. KZ856017111000000007 (ex-account No. KZ749261501160513005). The account was opened for settlements with national consultants and suppliers of goods, works and services. This account accumulated funds from the designated account after conversion of US dollars to Tenge. This account is not used for any other purposes. The balance on the Project account in Tenge as at 31 December 2019 is 55,200 Tenge (equivalent to 145 US dollars). SA- - 8 MINISTRY OF EDUCATION AND SCIENCE OF THE REPUBLIC OF KAZAKHSTAN. YOUTH CORPS PROJECT NOTES TO SPECIAL-PURPOSE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (in US dollars) 5. Reconciliation between the reported amounts received by the Project from the World Bank and paid by the World Bank Funds received from the World Bank Data of SOE (less refunds) Date/period according to according to variance according to according to variance PMU's data WB's data PMU's data WB's data 13.09.2016 93,000 93,000 02.112016 314,000 314,000 22,897 22,897 06.04.2017 736,000 736,000 123,781 123,781 30.06.2017 235,927 235,927 14.07.2017 655,000 655,000 603,320 603,320 28.08.2017 1,950,303 1,950,303 1,950,303 1,950,303 10.10.2017 716,000 716,000 624,697 624,697 05.12.2017 300,000 300,000 224,421 224,421 08,12.2017 1,334,089 1,334,089 1,334,089 1,334,089 16.042018 99,000 99,000 749,440 749,440 30.04.2018 99,000 99,000 165,126 165,126 06.06.2018 99,000 99,000 123,499 123,499 12.07.2018 99,000 99,000 25,338 25,338 17.08.2018 626,000 626,000 55,224 55,224 22.08.2018 2,758,417 2,758,417 2,758,417 2,758,417 26.10.2018 530,000 530,000 753,844 753,844 19.11.2018 2,604.929 2,604,929 2,604,929 2,604,929 21.01.2019 274,491 274,491 08.02.2019 413,000 413,000 351,363 351,363 0904,2019 31,500 531,500 416,287 416,287 1.066.2019 2,664,840 2,664,840 2,664,840 2,664,840 24.06.2019 782,000 782,000 440,315 440,315 23.09.2019 1,914,599 1,914,599 1,914,599 1,914,599 10.10.2019 404,00( 404,000 879,900 879,900 Total 19,723,677 19,723,677 19,297,047 19,297,047 9 LA 6 9 MINISTRY OF EDUCATION AND SCIENCE OF THE REPUBLIC OF KAZAKHSTAN. YOUTH CORPS PROJECT NOTES TO SPECIAL-PURPOSE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (in US dollars) 6. SOE WITHDRAWAL STATEMENT for the year ended 31 December 2019 Ap Applications and cash proceeds Expenses according to SOE pli Date of cu apit auI crediting to Component Component Component Total cash Statement of expenditure, based on which the Component Component Component Total iN) picto account I 2 3 proceeds application was made 12 3Toa I 0l308,2016 13.09.2016 93,000 93,000 Advance payment 2 02.11.2116 07,11,2016 243,600 70,400 314,000 SOB for September2016 22,897 22,897 3 25.02112017 06.04.2017 391,037 276,436 68,527 736,000 SOE for 4 quarter 2016 9,748 114,033 123,781 4 14.062017 SOE for I quarter 2017 111,265 88,734 35,928 235,927 5 10.07 2017 14.07.2017 437,821 145,110 72,069 655,000 SOE for 2 quarter2017 421,515 130,000 51,805 603,320 6 28.08.2017 28.08.2017 1,950,303 1,950,303 Direct payment dated 28.08.2017 1,950,303 1,950,303 7 18.09.2017 10 10.2017 356,582 271,827 87,591 716,000 SOE for July-August 2017 537,862 58,678 28,157 624,697 8 24,11.2017 05.12.2017 167,627 132,373 300,000 SO forSeptember-October2017 38,766 149,233 36,422 224,421 9 05.12.2017 08.12 2017 1,334,089 1,334,089 Direct payment dated 08.12.2017 1,334,089 1,334,089 10 28.03.2018 16.04.2018 99,000 99,000 SOE for November-December 2017 487,043 164,123 98,274 749,440 11 18.04.2018 30.04.2018 99,000 99,000 SOE for I quarter2018 134,550 30,576 165,126 12 08.06.2018 06.06.2018 99,000 99,000 SOE for April-May 2018 89,374 34,125 123,499 13 02.07.20 18 12.07.2018 99,000 99,000 SOE for june 2018 25,338 25,338 14 09.08.2018 17.08.2018 607,025 18,975 626,000 SOE for July 2018 46,092 9,132 55,224 15 14.08.2018 22.08,2018 2,758,417 2,758,417 Direct payment dated 22.08.2018 2,758,417 2,758,417 16 17.10.2018 26.10.2018 411,265 42.145 76,590 530,000 SOE for August and September 2018 686,036 37,687 30,121 753,844 17 13,11.2018 19.11.2018 2,604,929 2,604,929 Direct payment dated 19 11.2018 2,604,929 2,604,929 SOE for October, November and December 18 2018* 129,455 40,218 104,818 274,491 19 04.02.2019 08.02.2019 346,479 66,521 413,000 SOE for January 2019 350,638 725 351,363 20 04.04.2019 09.04.2019 425,261 106,239 531,500 SOE for February and March 2019 369,418 46,869 416,287 21 14.06.2019 19.06.2019 2,664,840 2,664,840 Direct payment dated 14.06.2019 2,664,840 2,664,840 22 19.06.2019 24.06.2019 724,868 57,132 782,000 SOE for April and May 2019 407,394 32,921 440,315 23 12.09.2019 23.09.2019 1,914,599 1,914,599 Direct payment dated 23 September 2019 1,914,599 1,914,599 24 02,10.2019 10.10.2019 345,582 58,418 404,000 SOE for June-September 2019 789,195 90,705 879,900 25 SOE for October-December 2019** 101,513 64,185 165,698 17,570,097 1,146,745 1,006,835 19,723,677 17,927,293 678,421 857,031 19,462,745 * Statements of expenditures to the application submitted in 2019. * Statements of expenditures to the application submitted in 2020. 10 MINISTRY OF EDUCATION AND SCIENCE OF THE REPUBLIC OF KAZAKHSTAN. YOUTH CORPS PROJECT NOTES TO SPECIAL-PURPOSE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 (in US dollars) 7. DESIGNATED ACCOUNT STATEMENT for the year ended 31 December 2019 From beginning of the 2019 2018 Project to 31 December 2019 I Total amount of advances paid by the World Bank with view of balances at the beginning of the period 2,514,562 1,781,676 6,496,500 2. Less: Total amount recovered by the World Bank 3. Equal to: Amounts advanced on the designated account (No. I less No. 2) with view of balances at the beginning of the period 2,514,562 1,781,676 6,496,500 4. Balance on designated account at the end of the period 261,021 384,062 261,021 5 Plus: Total amount of expenses paid during the period 2,253,563 1,397,523 6,35,568 6 Plus: Translation differences and other transactions with cash (22) 91 (89 7 Equal to: Outflow and balance on account at the end of the period 2,514,562 1,781,676 6,496,500 8 Difference between No. 3 and No. 7