"Sector Support for Education Reform Project" Credit No. 5230-KG. Grant No. H836-KG Special purpose project financial statements for the year ended December 31,2016 and independent auditors' report BAKER TILTY BISHKEK FOR EDUCATION REFORM PROJECT'' $I3O.KG, GRANT NO. H836-KG GONTENTS Page OF MANAGEMENT'S RESPONSIBILITIES FOR TFIE PREPARATION AL OF THE SPECIAL PURPOSE PROJECT FINANCIAL STATEMENTS YEAR ENDED DECEMBER 3I. 2016 AUDITORS'REPORT 3-5 FINANCIAL STATEMENTS PTJRPOSE PROJECT YEAR ENDED DECEMBER 3I. 2016: ofcash proceeds and disbursements ofuses offunds by project components 7 to the special purpose project financial statements 8- l9 OF MANAGEMENT'S RESPONSIBILITIES FOR THE PREPARATION AND OF THE SPECIAL PURPOSE PROJECT FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2016 statement, which should be read in conjunction with the independent auditors' responsibilities fre independent auditors' report set out on pages 3-5, is made with a view to distinguish the responsibilities of management and those of the independent auditors in relation to the special iect financial statements of the "sector Support for Education Reform Project", Credit No' 5230- No. H836-KG (the "Project"). rltis responsible for the preparation of the special purpose project financial statements that present dl material respects, cash proceeds and disbursements and uses of funds by project components of ct for the year ended December 31,2016 in accordance with International Public Sector Accounting Tinancial Reporting Under the Cash Basis of Accounting" (the "IPSAS") issued by the International Aaounting Standards Board of the International Federation of Accountants and the World Bank's A Management Sector Board's "Guidelines: Annual Financial Reporting and Auditing for World Bank Activities" (the "WEl Guidelines"). ing the special purpose project financial statements, management is responsible for: suitable accounting policies and applying them consistently; judgments and estimates that are reasonable and prudent; whether IPSAS and WB Guidelines have been followed, subject to any material departures and explained in the special purpose project financial statements; and the special purpose project financial statements on a going concern basis, unless it is to presume that the Project will cohtinue its activity for the foreseeable future. is also responsible for: &signing, implementing and maintaining effective and sound system of internal control in the Project; nintaining proper accounting records that disclose, with reasonable accuracy at any time, the financial position of the Project, and which enable them to ensure that the special purpose project financial irtements of the Project comply with IPSAS and WB Guidelines; ompliance with laws and regulations of the Kyrgyz Republic, accounting system of the Project and the requirements of the World Bank; taking such steps as are reasonably available to them to safeguard the assets ofthe Project; and &tecting and preventing fraud and other irregularities. special purpose project financial statements for the year ended December 31,2016 were approved and orized for issue on April 6,2017 by the management of the Project. Or behalf of the Ma Ainekenova Anara Rysbekova Murzat Director Financial Manager April6,2017 April6,2017 Bishkek, Kyrgyz Republic B ishkek, Kyr gy z Republic BAKER TILLY 1O3 lbrairnova sfo- BC'Victory", 7th floor T: F: +996 (312)900505 + 996 (312) 91 05 05 BISHKEK Bishkek, 720011 Kyrgyz Republic contact@bakertilly. l€ www-bakertilly.l1g NDENT AUDITORS'REPORT te Management of the Project "sector Support for Education Reform Project" under the Ministry of and Science of the Kyrgyz Republic: have audited the accompanying special purpose project financial statements of "sector Support for Reform Project" (the "Project") which comprise of the statement of cash proceeds and ts and the statement of uses of funds by project components for the year ended December 31, and a summary of significant accounting policies and other explanatory information (the "special project financial statements"). or opinion, the accompanying special purpose project financial statements present fairly, in all material cash proceeds and disbursements and uses offunds by project components ofthe Project for the year December 31, 2016 in accordance with International Public Sector Accountinq Standard "Financial ing Under the Cash Basis of Accounting" (the "IPSAS") issued by the International Public Sector ting Standards Board of the International Federation of Accountants, andthe World Bank's Financial t Sector Board's "Guidelines: Annual Financial Reporting and Auditing for World Bank Financed " (the "WB Guidelines"). for Opinion conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities those standards are further described in the Auditor's Responsibilities for the Audit of the special lse project financial statements section of our report. We are independent of the Project in accordance the International Ethics Standards Board for Accountants' Code of Ethics for Professional Accountants Code) together with the ethical requirements that are relevant to our audit of the financial statements the Kyrgyz Republic, and we have fulfilled our other ethical responsibilities in accordance with these ts and the IESBA Code. We believe that the audit evidence we have obtained is sufficient and to provide a basis for our opinion. asis of matter further qualiffing our opinion, we draw attention to Note 2 to the special purpose project financial , which describe the basis of accounting. These special purpose project financial statements were for complying with the appropriate World Bank Guidelines and Grant agreement requirements, and are not intended to be a complete presentation of the "sector Support for Education Reform Project" *Project") operations. lller matter lle special purpose project financial statements are prepared to assist the Project to comply with the lquirements of the World Bank. As a result, the special purpose project financial statements may not be riable for another purpose. of Management and Those Charged with Governance for the special purpos€ project t rcsponsible forthe preparation and fair presentation of these specialpurpose project financial lcordance with International Public Sector Accounting Standard "Financial Reporting Under of Accounting" (the "IPSAS") issued by the International Public Accounting Standards Board ional Federation of Accountants. and the World Bank's Financial Manasement Sector Board's Annual Financial Reporting and Auditing for World Bank Financed Activities" (the "WB nd for such internal control as management determines is necessary to enable the preparation of Fpose project financial statements that are free from material misstatement, whether due to fraud lities for the Audit of the special purpose project financial statements are to obtain reasonable assurance about whether these special purpose project financial s a whole are free from material misstatement. whether due to fraud or enor. and to issue an 4ort that includes our opinion, Reasonable assurance is a high level of assurance, but is not a tlat an audit conducted in accordance with ISAs will always detect a material misstatement when it can arise from fraud or effor and are considered material il individually or in the rhey could reasonably be expected to influence the economic decisions of users taken on the basis ial purpose project financial statements, ur audit in accordance with ISAs, we exercise professional judgment and maintain professional throughout the audit. We also: Uenti$, and assess the risks of material misstatement of the special purpose project financial tEtements, whether due to fraud or error, design and perform audit procedures responsive to those rb*s, 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 frrom error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of intemal control. Obtain an understanding of internal control relevant to the audit in order to design audit procedures drat are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Project' s internal control. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Project's ability to continue as a going concern, If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the special purpose project financial statements or, if such disclosures are inadequate, to modifu our opinion, Our conclusions are based on the audit evidence obtained up to the date of our auditor's repoft, However, future events or conditions may cause the Project to cease to continue as a going concern. Evaluate the overall presentation, strucfure and content of the special purpose project financial statements, including the disclosures, and whether the special purpose project financial statements represent the underlying transactions and events in a manner that achieves fair presentation, with those charged with governance regarding, among other matters, the planned scope and adit and significant audit findings, including any significant deficiencies in internal controlthat our audit. those charged with governance with a statement that we have complied with relevant ethical rcgarding independence, and to communicate with them all relationships and other matters that be thought to bear on our independence, and where applicable, related safeguards. Republic '*rrtr. ttt"Lv sisHrrr FCCA of auditor of the Kyrgyz Republic # A , "Baker Tilly Bishkek" LLC Bishkek" LLC, A # 0049 issued by the State Committee and Regulation of the financial market of the lc SUPPORT FOR EDUCATION REFORM PROJECT'' NO.523O-KG, GRANT NO. H836.KG OF CASH PROCEEDS AND DISBURSEMENTS YEAR ENDED DECEMBER 31,2016 Notes For the year Cumulative For the period Cumulative ended from May 10, December 31, 2014 to 2016 December 31, 2015 676,827 G 5 l,5o5,g5g 2,704,329 1,198,47 | 1,198,47 | H836-KG 5 1,236,563 1,894,894 659,331 658,331 2,742,421 4,599,223 1,856,802 I,856,802 10, I 10 40,096 29.986 29,986 2.7 52.53t 4.639.3 I 9 l,gg6,7gg 886,788 7 1,463,082 ' 1,711,036 247,954 247,954 7 1,430,143 1,995,052 454,909 454,909 7 61,401 190,016 118,615 I 18,615 1 1,758 12,809 1 1,051 I,051 382,725 382.725 382,725 crpenses 2,966,384 4,171,638 1,205,254 1,205,254 expenses 4.801 9,509 4,707 4,707 458,173 458.t73 676,827 676,827 of the Mana Rysbekriva Nurzat Financial Manager 6,2017 April6,2017 the Kyrgyz Republic B ishkek, the Kyr gy z Republic Dtes on pages 8-19 form an integral part ofthe special purpose project financial statements. The Independent Auditors'Report is 3-5 SUPPORT FOR EDUCATION REFORM PROJECT'' NO.5230.KG, GRANT NO. H836.KG OF FUNDS BY PROJECT COMPONENTS YEAR ENDED DECEMBER 31, 2016 For the year Cumulative For the period from Cumulative ended May 10, 2014 to December 31, December 31, 2016 2015 L Enhanced Learning pedagogical practices 806,355 820,494 14,139 14,139 for learning 1,691,3 I 8 1,927,385 236,067 236,067 ongoing revision of for Grades 5-9 10 1,59 46,662 148,253 101,591 1 of learning 19,650 19,650 97,795 117,445 II.Improved and Accountability of furancial management 13,502 ,r5 5?{ 212,033 212,033 school leadership nt 167,857 167,857 III. Communications ion Support and outreach 15,754 15,754 15,7 54 support 142,895 366,190 223,295 ))? )95 382,725 382,725 382,725 2,966,384 4,171 638 1,205,254 1,205,254 Financial Manager 2017 April6,2017 the Kyrgyz Republic Bishkek, the Kyrgyz Republic on pages 8-19 form an integral part ofthe special purpose project financial statements. The Independent Auditors' Report is 3-5 FOR EDUCATION REFORM PROJECT'' GRANT NO. H836.KG SPECIAL PURPOSE PROJECT FINANCIAL STATEMENTS ENDED DECEMBER 31,2016 INFORMATION ts the Agreement between the Kyrgyz Republic and International Development Association dated October 9,2013, the IDA provided a Credit No.5230-KG in the amount of 6,000,000 ing Rights (the "SDR") and Grant No,H836-KG in the amount of 4,900,000 SDR to the was provided for implementation of the "Sector Support for Education Reform Project" ofthe Project is from October 9,2013 to February 28,2018. of the Project is to create conditions for improved learning outcomes in basic education. is to be implemented during 2013-2018, and comprises 3 components: C.omponent I: Enhanced learning; Component II: Improved management and accountability of school resources; Component III: Communications and implementation support. I: Enhanced learning. consists of 4 subcomponents: finances development and delivery of in-service training program for primary school and pedagogical staff; provision of teaching materials and strengthening the capacity of the Academy of Education and Oblast In-service Teacher Training Institutes and Methodological through provision of technical assistance in the form of furniturelmaterials, and hainings. nrbcomponent finances development of new manuscripts and publication of textbooks for relevant groups; provision oftechnical assistance to the Ministry of Education and Science (hereinafter - subcomponent finances supporting the piloting and revision process oftextbooks for relevant target ; provision of technical assistance to MoES. 1d: subcomponent finances assessment of learning system performance and effectiveness of education through surveys and observations. II: Improved managemenl and accoantability of school resources. component includes the following 2 subcomponents: subcomponent finances provision of technical assistance, haining, furniture, equipment and ials for the design and operationalizing of an automated monitoring system for school budgets and itures; provision of training on the per-capita financing system in general education; and provision ical assistance to support key stakeholders in implementing PCF and other improved practices in and accountabilitv in four selected oblasts. subcomponent finances provision of technical assistance, training, furniture, equipment and ials for the design and operationalizing of an automated monitoring system for school budgets and itures; provision of haining on the per-capita financing system in general educational system; and ision of technical assistance to support key stakeholders in implementing of per-capita financing rystem and other improved practices in management and accountability in four selected regions of the ountry. C.ompo nent III : C ommunicatio n and imp lementatio n s upp ort. This component includes the following 2 subcomponents: &tbcomponent IIIa: This subcomponent ensures support for communicating to stakeholders about changes in the education $ector. Subcomponent III\: This subcomponent ensures providing implementation support to the Project, including incremental operating costs. Project management The Project is implemented by Project Coordination Unit within the Ministry of Education and Science. According to the Order No. 58/4 of Ministry of Education and Science, the Project Coordination Unit has been created on March 24.2005. PRESENTATION OF THE SPECIAL PURPOSE PROJECT FINANCIAL STATEMENTS Basis of preparation These special purpose project financial statements have been prepared in accordance with the International Public Sector Accounting Standard (the "IPSAS") "Financial Reporting under the Cash Basis of Accounting" issued by the Public Sector Committee of the International Federation of Accountants, and incorporate the following principal accounting policies, which have been consistently followed in all material respects and comply with the World Bank's Financial Management Sector Board's "Guidelines: Annual Financial Reporting and Auditing for World Bank Financed Activities" (the "WB Guidelines"). Under the cash basis approach income (or expenditure) is recognized when cash is received (or paid) irrespective of when goods or services are received or provided, The Project's approved budget disclosed by categories of expenses is not publicly available and as such comparison of budget and actual amounts is not presented. These special purpose project financial statements consist of: r Statement of cash proceeds and disbursements; o Statement of uses of funds by project components; o Notes to the special purpose project financial statements, including short description of main statements of accounting policy and other descriptive notes. The reporting cuffency of these special purpose project financial statements is US Dollars (the "USD"). SUMMARY OF SIGNIFICA}IT ACCOUNTING POLICIES Cash basis of accounting The special purpose project financial statements are prepared on a cash basis of accounting. The cash basis of accounting recognizes transactions and events only when cash (including cash equivalents) is received or paid by the Project. Special purpose project financial statements prepared under the cash basis provide readers with information about the sources of cash raised duringlhe period, the purposes for which cash was used and the cash balances at the reporting date. The rn"u.ui"rnent focus in the special purpose project financial statements is balances ofcash and changes therein. Foreign currency Operations in foreign culrency initially are counted in functional currency by the currency exchange rate settled by commercial bank on a date of operation. Funds received are translated into USD at official exchange rate of Special Drawing Rights (the "SDR") at the date of funds receipt. Monetary assets and liabilities expressed in foreign currency are converted to functional currency at official exchange rate on a date settled by the commercial bank. All exchange differences arising in the settlement and conversion of monetary items are included in the Statement of cash proceeds and disbursements. Non-monetary items are valued according to their historic cost in foreign currency, which are recalculated on rates ofthe initial operation date. Cash and cash equivalents Cash and cash equivalents include cash on hand and due from banks, which can be converted to the corresponding amount of cash in the short term. Taxes Calculation and payment of personal income tax and social security conhibutions from income of local staff and consultants is made in accordance with the requirements and rates of the Tax Code of the Kyrgyz Republic. Project expenses The expenses are recorded in the period when they were actually paid. t0 Sources offunds The funds were provided by the world Bank to the project by reprenishment of speciar account through direct payment to the end supplier ofgoods and/or services. cAsH AND CASH EQUTVALENTS cash and cash equivarents as at Decembe r 3r, 2016 and 2015 comprise: Currency December 31, December 31, 2016 2015 Designated account in foreign currency USD 427,477 651,459 Interest account in national curency USD 29,935 24,glg Tender account in foreign crxrency USD 720 530 Interest account in national currency USD 8 Advances paid to employees 5 KGS t4 459,173 FUNDS RECETVED The funds received were presented by the foilowing reimbursement methods: For the year ended December 31,2016 Cumulative Credit IDA IDA Grant Total IDA Credit IDA Grant method / No.5230- No. H8360- No. 5230 - No. H8360- Total of financing: KG KG KG KG 500,000 400,000 nt of 900,000 account ") / Statement of itures ("SOE,,) 929,462 764,966 t,694,429 1,627,933 payments 1,023,299 2,651,231 576,396 1,047,993 576,396 1,047,993 funds received 1,505,959 1,236,563 2,742,421 2,704,329 l,g94,g95 4,599,224 For the period from May 10,2014 to Cumulative December 31. 20ls IDACredit IDA Grant Total IDA Credit IDA Grant ing method / No.5230 No. H8360 No.5230 No. H8360 Total of financing: KG KG KG KG itial deposit 500,000 400.000 900,000 500,000 tof 400,000 900,000 account ") / Statement of tures("SOE") Agg,qlt 25g,331 956,g03 699,471 25g,33t g56,g03 funds received -l't9s'4?1 --_658Jn J,856,-q03 J,g56,ggr -1,19g,4?l --658Jn l1 OTHER NON.OPERATING INCOME Other income represents interest income accrued by the serving bank on the outstanding balances of cash on designated account and sale oftender documents. For the year ended December 31,2016 IDA Credit IDA Grant No. Total No.5230-KG H8360- KG Interest income 4,051 5,869 9,920 Sale of tender documents 190 190 4,051 6,059 l0,t l0 For the period from May t0,2014 to December 31, 2015 Credit IDA IDA Grant No. Total No.5230-KG H8360- KG Interest income 16,176_ 13,153 29,329 Sale of tender documents 650 650 Other income 1 13,810 29,986 CUMULATIVE PROJECT EXPENDITURES Project expenditures by components are presented in the statement of funds by project components. Project expenditures on major categories are presented in the statement of cash proceeds and disbursements. Breakdown of project expenses by categories and donors is presented as follows: GOODS For the year ended December 31,2016 Cumulative IDA Credit IDA Grant No. IDA Credit IDA Grant No. No. 5230 KG H8360 KG No. 5230 KG H8360 KG Educational materials 749,796 612,652 859,91I 703,565 Equipment 55,899 45,735_ 74,352 60,833 Vehicles 6,906 5,569 804,695 658,387 941,069 769,967 For the period from May 10, 2014 to December 31, 2015 Cumulative IDA Credit IDA Grant No. IDA Credit IDA Grant No. No. 5230 KG H8360 KG No.5230 KG H8360 KG Educational materials lll,1l5 90,913 lll,l15 90,913 Equipment 19,453 15,098 19,453 15,098 Vehicles 6,806 s.569 6,906 s.569 136,374 lll 580 136,374 111.580 t2 -- LTING SERVICES For the year ended Cumulative December 31, 2016 IDA Credit IDA Grant IDA Credit IDA Grant No. No.5230 KG No. H8360 KG No. 5230 KG H8360 KG Payroll and related taxes 107,977 88,331 230,478 I 88,884 Consulting services 645,267 527,946 645,267 527,946 Assessment of pedagogical practices 28,399 23,236 35,549 29,086 Audit 4,943 4,044 17,520 14,334 Technical assistance on normative financing implementation r07;t93 gg, I g5 786,586 643,557 1,036,607 848,445 For the period from May 10,2014 Cumulative to December 31, 2015 IDA Credit IDA Grant IDA Credit IDA Grant No. No.5230 KG No. H8360 KG No.5230 KG H8360 KG Payroll and related taxes 122,501 100,553 122,501 I 00,553 Technical assistance on normative financing implementation 107,793 88,1 95 107,793 88,1 95 Assessment of pedagogical practices 7,1 50 5,850 7,150 5,850 Audit 12,577 t 10,290 12,577 10,290 250.021 204,888 250,021 204,888 OPERATING COSTS For the year ended December 31, 2016 Cumulative IDA Credit IDA Grant IDA Credit IDA Grant No. No.5230 KG No. H8360 KG No. 5230 KG H8360 KG Payroll and related taxes 16,688 13,667 45,630 37,026 Rent ofconference hall for seminars 2,570 2,103 3,662 2,996 Accommodation ? 5?5 2,034 10,732 11,263 Stationery 2,366 1,935 4,510 3,690 Transportation 1,454 1,205 ? 5?? 2,905 Fuel 1,120 906 11'r< -r-LJ l,g0g PR and marketing 1,099 909 5,658 4,639 Per diems 757 645 4,076 4,066 Equipment 209 t7l 392 321 Creation of educational video for teachers t43 117 693 567 External expertise of subject standards 76 62 429 351 Maintenance of vehicles t7 t4 724 592 Communication 123 l0l Accounting manuals for budget funded institutions 2,804 2,294 Printing of handouts 1,324 1,084 Rent of equipment 6ll 499 Other 4,729 3,870 12,055 6,634 JJ. /OJ 27,639 99 180 80,836 l3 OPERATING COSTS For the period from May 10,2014 Cumulative to December 31, 2015 IDA Credit IDA Grant IDA Credit IDA Grant No. No.5230 KG No. H8360 KG No. 5230 KG H8360 KG Payroll and related taxes 28,943 23,359 28,943 23,359 Per diems 3,319 3,421 3,319 3,421 PR and marketing 4,559 3,730 4,559 3,730 Accounting manuals for budget funded institutions 2,804 2,294 2,804 2,294 Stationery' 2,144 1,755 2,144 1,7 55 Accommodation 9,797 9,229 9,197 9,229 Printing of handouts 1,324 1,094 1,324 1,084 Transportation 2,079 1,700 2,078 1,700 Rent ofconference hall for seminars 1,092 893 7,092 893 Fuel 1,105 902 1,105 902 Maintenance of vehicles 707 578 707 578 Creation of educational video for teachers 550 450 550 450 Rent of equipment 611 499 611 499 External expertise of subject standards 353 289 353 289 Equipment 183 150 183 150 Communication r23 r0l 123 101 Other 7,325 2.764 7.325 2,764 65.4t7 53, I 98 65.4r7 s3.1 98 TRAININGS For the year ended Cumulative December 3f . 2016 IDA Credit IDA Grant IDA Credit IDA Grant No. No.5230 KG No. H8360 KG No.5230 KG H8360 KG Trainings 6,467 5,291 7,045 5.764 6,467 5,291 7,045 5.764 For the period from May 10,2014 Cumulative to December 31. 2015 IDA Credit IDA Grant IDA Credit IDA Grant No. No.5230 KG No. H8360 KG No. 5230 KG H8360 KG Trainings 578 473 578 473 s78 473 578 473 t4 REFUND OF PREPARATION ADVANCE For the year ended Cumulative December 31. 2016 IDA Credit IDA Grant IDA Credit IDA Grant No. No.5230 KG No. H8360 KG No.5230 KG H8360 KG Refund of preparation advance 382,72s 382.725 For the period from May 10,2014 to December 31. 20f s Cumulative IDA Credit IDA Grant IDA Credit IDA Grant No. No.5230 KG No. H8360 KG No.5230 KG HE36O KG Refund of preparation advance 382,725 392,725 382.72s 382"72s FINANCIAL POSITION Financial position as at December 31, 2016, and 2015 comprise of: December 31, December 31, 2016 2015 ASSETS AND EXPENDITURES Cash and cash equivalents 459,173 676,827 Cumulative proj ect expenditures 4,171,639 1,205,254 Other non-operating expenditures 9,509 4.707 TOTAL ASSETS AND EXPENDITURES 4,63931-9 l,gg6,7gg FINANCING Funds received 4,599,224 1,856,802 Other non-operating income 40,096 29.986 TOTAL FINANCING 4,6393t9 I,gg6,7gg WITHDRAWAL APPLICATIONS Withdrawal applications for the year ended December 3 l, 2016 comprise: Sources of financing No Date Direct Goods and Total payments services, including audit, trainings and operating expenses IDA Credit No. 5230- KG ll January2l,2016 250,316 250,316 9 February 17,2016 136,64r t36,641 l3 April2l,2016 326,090 326,080 l5 l5 June 30,2016 300,028 300,029 l8 September 13,2016 27g,5gg 279,599 t9 December 19,2016 213.204 929.462 1.505.858 IDA Grant No. H8360- KG l0 January 21,2016 204,904 8 February 18,2016 1 I 1,906 I I 1,906 12 April21,2016 266,793 14 June 30.2016 245,479 245,479 17 September 13,2016 228,755 228,755 20 December 19.2016 178,927 t78.927 471,597 764,966 r.236.563 ___J!479%_ 1,694,428 2.742.421 10. DESIGNATED ACCOTINT -,- Designated account for the period from January l, 2016 to Decembe r 31,2016 comprise: IDA Credit No.5230- IDA Grant No,H836- Designated accounls KG KG Currency US Dollars US Dollars Bsnk account 109t828235s73678 109r82823s573173 Bank OJSC "Optima Bank" Bank's location 326, Zhibek Zholu avenue, Bishkek, KyrgyzRepublic Description US Dollars US Dollars Balance as at January 1,2015 359,729 295,241 Replenishment of DA / SOE Total funds received to a 315,746 25g,331 designated account Th.e. amount of eligible expenditures 3t5,746 25g,331 pard 312,143 255,394 567,537 Foreign exchange difference t9 l7 36 Transfer to transit account and advances paid to employees 9 ) 14 Balance as at January 1,2016 Direct payments Replenishment of DA / SOE Total funds received to a designated account The amount of eligible expenditures paid Advances paid to employees 1,63 1,5 I I 1,334,973 2.ffi,iu l0 9 t9 Balance as at December 31.2016 189,837 Gl'jfl I6 - 11. UNDRAWN FT]NDS As at December 31, 2016 undrawn funds with breakdown by grants are presented as follows: IDA Credit IDA Grant No. 5230 KG No. H8360 KG Approved grant amount (US Dollars) g, I 00,000 7,400,000 Disbursed in2014 (US Dollars) 500,000 400,000 Disbursed in 2015 (US Dollars) 315,746 259,331 Disbursed in 2016 (US Dollars) 1,505,959 1,236,563 Undrawn amount 5,505,1 05 IDA Credit IDA Grant No.5230 KG No. H8360 KG Funds received as at January | , 2016 (US Dollars) 9t5,746 659,331 Disbursed in2016 (US Dollars) I,505,959 1,236,564 Funds received as at December 3l.2016 12, COMMITMENTS In the normal course of in accordance with the December 31,2016 and e i#:H#:,T1,1'jH;i,?ffl;*"l"iiffi: Provider Contract Contract paid till Outstandi amount December 31, ng amount 2016 CJSC "CAIConsulting" No' SSFER/GS/QCBS/I.l/0Ic, 23.1Ll5 usD 1,804,501 703,601 1,100,900 LLC "St.art LTD" and No. S SFER/G lICB / 1 .2, | /2/Replication of LLC "Arcus Publishing Textbook for Grades 4 and3/Lotl, Ltd" LLC "St.art Ltd", LLC 18.06.15 usD 741,091 690,816 50,275 No. SSFER/CS/CQS/1 .2/4SC, "Bilim Computers", LLC Patpa6orxa HoBbrx yre6nrxon 5,6 "Arcus Publishing" LLC "Experts of Central KJIACCOB usD299,225 80,791 219,434 Asia" LLC "Kirland", LLC No. SSFER/CSl CQS/2.21 52. 08.07. I 6 51,216 usD 298,663 247,447 "Arkus" No. SSFER/CS/CQS/1.2/05c, 19.09.16 USD 200,386 _ 200386 LLC "Kirland", No. SSFER/CSICQ/I.2149C,05.04.16 rJSD t92,go2 96,4:t 96,451 LLC "St.art LTD" and No. S SFER/G 1ICBl l .2.t 12 lReplication of LLC "Arcus Publishing Textbooks for Grades 4 and 3/LotNo.3, Ltd" 15.06.15 189,710 184,565 USD 5,145 LLC "Bilim computers" No' SSFER/GS/CQS/1.2.1/05c,05.08.16 usD 168,915 ts,2o2 153.713 LLC "Bilim computers" No. SSFER/cs/cQ/1.2/0sc,05.08.16 usD 167,865 15,107 152.758 The National Center for Evaluation in Education and Training Methods University of Virginia, No. SSFER/CS/SSS/1.4/28c, l0,t I, l6 usD 147,554 29,510 1 I 8.044 Virginia USA No. SSFER/CS/SSS/57c, 24.08.t6 usD 142,201 42,660 99,541 LLC "Independent testing company" No' SSFER/cslcQll.4l20c,23.rl.l5 usD r39,585 35,124 104,46l LLC (St.art LTD and LLC No. S SFER/G llCB / 1.2.1tReplication 12 of "Arcus Publishing Ltd,' Textbooksfor Grades 4 and 3/LotNo.4, 15.06.15 usD 121,055 119,195 1,860 LLC "Bilim computers" 05.08.16 No' sSFER/cs/cQ/1.2.1/09c, usD 120,768 t0',86g 109.899 t7 LLC "Triada print" LLC "Socium Consult,' usD 120,695 60,347 60,349 usD 101,638 96,555 5,093 usD 76,003 6,940 69163 usD 75,910 6,922 6g,ggg usD74,902 6,741 69,1 6 1 No. SSFER/CS/LCS/3,0/3 c, 30.0 1 1. 1 6 usD 35,950 g,gg7 26,963 Counterparty Contract Contract value Paid up to Remaining December 31, amount to 2015 be paid CJSC "CAlConsultins" LLC "St.art LTD', ani Io, llllR/cs/ecBs/1. l/01c, 23. I L l5 No. SSFER/G usD 1,904,501 9,439 1,795,062 LLC "Arcus publishins /rCB/ 1.2.1 t2/R pii."ii* Ltd" Textbook for Grades 4 and3/Lotl, "r 18.06.l5 LLC "St,art LTD" and No, S SFER/G 1ICBI t .2. I t2 Repticarion usD 741,091 74,109 666,992 LLC "Arcus publishine of Textbooks for Grades 4 and 3iLot3, Ltd 15.06, I 5 LLC "Independent testins usD 189,710 lg,g7l 170,739 company" No. SSFER/C St Ce/ t.4t20c, 23.1 t.t 5 LLC "Print Express" usD 139,585 13,000 126,595 LLC "St,art /2.1/2/,18.06.15 usD 568,900 LiD" and .2.U2/Replication of 455,120 I 13,790 LLC "Arcus publishine Ltd" s 4 and 3/Lot4. usD 121,054 108,949 12,105 LEGAL CASES There were no any legal cases related to the project. EVENTS AFTER THE REPORTING DATE *'[i'3'l",1#fl'l;iff;l';;::,""1'h"",;,T::',"]J;:fi:ff nnanciar statements the worrd Bank 1**, Financing method / Date sources of Application IDA Credit IDA Grant financing: 5230 KG H8360 KG Replenishment of February 24,2017 designated account 26 ("DA", / Statement February 27,2017 95,571 24 February 24,2017 124,545_ ofexpenditures 25 ("soE") February 27,2017. March 06,2017 28 March 06,2017 94,455 27 As at the date of t*u: special purpose ^:l'n: for the *rrrt, or project transactions happened, except financiar statements no other significant transactions described events or above. l8