“Climate Adaptation and Mitigation Program for Aral Sea Basin” Credit No. 5742-TJ The project financial statements for the year ended December 31, 2019 and independent auditors’ report “CLIMATE ADAPTATION AND MITIGATION PROGRAM FOR ARAL SEA BASIN” CREDIT NO. 5742-TJ TABLE OF CONTENTS Page STATEMENT OF MANAGEMENT’S RESPONSIBILITIES FOR THE PREPARATION AND APPROVAL OF THE PROJECT FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2019 2 INDEPENDENT AUDITORS’ REPORT 3-4 THE PROJECT FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2019: Summary of funds received and expenditures paid 5 Summary of expenditures paid by project components 6 Notes to the project financial statements 7-17 ,CLIMATE ADAPTATIoN AND MlTlGATloN PRoGRAM FoR ARAL SEA BASIN" cREDlT No.5742-TJ STATEMENT OF MANAGEMENT,S RESPONSIBILlTlES FOR ТНЕ PREPARATION AND APPROVAL оF тнЕ PRoJEGT FlNANclAL STATEMENTS FoR тнЕ YEAR ENDED DECEMBER 3,1,2019 The following statement, which should Ье read in conjunction with the independent auditors' responsibilities is made with а view to distinguish the respective responsibilities of management and those of the independent auditors iп relation to the project fiпапсiаl statements of the Project "Climate Adaptation and Mitigation Рrоgrаm fоr Аrа| Sea Basin", Credit No. 5742-TJ (the "Project"). Management is responsible fог the рrераrаtiоп of the ргоjесt fiпапсiаl statements that рrеsепt fairly, in all mаtеriа| respects, the summary of funds гесеiчеd and ехрепditчrеs paid and the summary of expenditures paid Ьу project components of the Project for the уеаг ended December 31 , 2019 iп ассоrdапсе with lnternational Public Sector Accounting Standard "Fiпапсiаl Reporting Uпdеr the Cash Basis of Accounting" (the "lPSAS") issued Ьу the lnternational Public Accounting Standards Board of the lnternational Fеdеrаtiоп of Accountants and the World Bank's Fiпапсiаl Management Sector Board's "Guidelines: дппчаl Financial Rероrtiпg and Auditing for Wоrld Вапk Fiпапсеd Activities" (the "WB Guidelines"). ln рrерагiпg the project financial statements, management is responsible for: . selecting suitable accounting policies and applying them consistently; . making judgments and estimates that аrе rеаsопаьlе and ргчdепt; . stating whеthег lpsAs and wB Guidelines have Ьееп followed, subject to апу mаtеriаl dерагturеs disclosed апd explained in the project financial statements; and . рrераriпg the project financial statements on а going сопсеrп basis, unless it is iпаррrорriаtе to ргеsчmе that the Ргоjесt will Ье implemented iп ассоrdапсе with the established period. Management is also responsible fоr: . designing, implementing and maintaining effective and sound system of iпtеrпаl сопtrоl and fоr revealing risks iп system of iпtегпаl сопtrоl; . maintaining рrореr accounting rесоrds that disclose, with rеаsопаьlе ассчrасу at апу time, the fiпапсiаl position of the Рюjесt, and which епаЬlе them to епsчrе that the project financial statements of the Рrоjесt comply with lPSAS and WB Guidelines; . compliance with laws and regulations of the Republic of Tajikistan, accounting system of the project and the rеqчirеmепts of the Wоrld Вапk; . taking such steps as аrе rеаsопаьlу available to them to safeguard the assets of the project; and . detecting and preventing fraud and other irregularities. The project fiпапсiаl statements fоr the уеаr ended DесеmЬеr 31 , 2019 wеге approved and authorized fоr issue оп June 5, 2020 Ьу the management of the Project. Оп behalf of the Мапаgеmепt: chief Ассочпtапt Head of рlаппiпg, of MOF PMU accounting and fiпапсiпg department of сЕР of Tajikistan Ф ifl ýчЁillЁ|| д Е ц lл о J в'(J .=о зЕ оЕ рЕ оЁ оо NF J с,, ý|ýil ýqfiil-|q G.! ыЁ .Е 1, о Ер дl Е ý,Б CLa Ф 9о ъб ос Ес l||| зЕ вfr ФЕ, ДЕ ,э т N Е' Е Ф G Ф с) 1ч-|1 дб t lo ФЭ -l Фl €Е ьЕ ý|ýilý Ф_| Фl cj z .9 rд *о Фl ýll Ёlýш=| Е о 1л = l Ё о z ЕЕ ýilЕч$il-|Ёll Е 6 оо NF о о Ф m J с, trо бL ъ .=о о Ф lEФ = т , э tл о дl Е оо б чlч-|ч tЕ 0, 9о э Ф с t. о Ф Bft Tt с) ъ Ф Ё с ; о qi Ф Е lДо б Ф l--- Ф ФЭ Ф Бfr € ьЦ : Е Е Ф =Е flЕаlýillч .9ц цо Ф оЁ еэ о ъ Е о_tr ,б о 6 с о gБ 1, fiо, о tr о $;* Ф ,а Ф z о я fti о Е2: Ф V л- о > к о {нЁ Ё яЁ Ё gа_ЁgЕ Ё Ё ý б Ф д Е ЁЕ = =F.; = о ! =с5 Эо с сllдý Е ý;FЁЕЁ Ё Е Ё о Ф , ol o- ol N -l , -l F lr)l t.)l -ll !+ll б Ё|ý-1 ц о fl ч g9 .=о lч Ф? d9 оЕ еrо оЁ б(E чýЕiifiil (\lF ыЁ Ё! .ЕЕ ctrD Ф ll trе с Ё'р llqч 0, 9о Ес оЕ Е(E gtE Bft E(J Фт, #Е с Ф б Ф Фэ 5Е ьо о,. ц: = ý|KЁllЕ|l { с) Ф Ф о) б о с о a Ф? .Ф f оо о о iЕччýil = cl, с{F Ф J е Ф fil, о = т , lл lл Ф дl Е fr