“Social safety net strengthening project” Grant No. H726-TJ; Grant No. D270-TJ; Loan No. 6175-TJ The project financial statements for the year ended December 31, 2018 and independent auditors’ report “SOCIAL SAFETY NET STRENGTHENING PROJECT” GRANT NO. H726-TJ; GRANT NO. D270-TJ; LOAN NO. 6175-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, 2018 2 INDEPENDENT AUDITORS’ REPORT 3-4 THE PROJECT FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018: Summery of funds received and expenditures paid 5 Summery of expenditures paid by project components 6 Notes to the project financial statements 7-13 STATEMENT оF MANAGEMENT,S RESPoNSlBlLtTlES FоR тнЕ PREPARATIoN AND APPROVAL ОF ТНЕ PROJECT FINANCIAL STATEMENTS FОR ТНЕ YEAR ENDED DECEMBER 31, 2018 The following statement, which should Ье геаd iп conjunction with the independent ачditоrs' responsibilities is made with а view to distinguish the respective responsibilities of management and those of the independent auditors iп rеlаtiоп to the ргоjесt financial statements of the Рrоjесt "sоЪiаl safety net strengthening рrоjесt'', Gгапt No. H726-TJ; Gгапt No. D270-TJ; Loan No, 6175-TJ (the ''Project''), Management is rеsропsiЬlе fоr the ргераrаtiоп of the project financial statements that mаtеriаl rеSресtS, the summаrу of funds rесеiчеd and ехрепdituгеs paid and the ргеsепt fairly, in all SUmmагу of expendituгes paid ЬУ рrоjесt components of the Project fоr the уеаг ended DесеmЬеr з1, 2о18 in ассоrdапсе with lпtеrпаtiопаl Public Sector Accounting Standard '''Financial Rерогtiпg Under the Cash Basis of Дссочпtiпg'' (the "lpsAs") issued Ьу the lnternational public Accounting standards Воаrd of the lпtеrпаtiопаl Fеdегаtiоп of Accountants and the Wоr|d Bank's Financial МапаgеmепЬесtог Board's "Guidelines: дппuаl Fiпапсiаl Rерогtiпg and Auditing fоr World Bank Financed дсtiчitiеs" (the "WB Guidelines''). lп ргераriпg the project financia| statements, management is rеsропsiьlе fоr: . Selecting suitable accounting policies and applying them consistently; . making judgments and estimates that аrе rеаsопаьlе and рrudепt; О stating whetheГ lPSAS and WB Guidelines have Ьееп followed, subject to any material dерагtuгеs disclosed and explained in the ргоjесt financial statements; and , рrераriпg the рrоjесt financial statements on а going сопсеrп basis, unless it is iпаррrорriаtе to that the project will continue its activity fоr the fогеsееаьlе future. рrеsumе Management is also responsible fоr: , designing, implementing and maintaining effective and sound system of iпtеrпаl сопtrо| and fоr revealing risks in system of iпtеrпаl сопtrоl; о maintaining ргореr accounting rесоrds that disclose, with rеаsопаьlе ассurасу at апу time, the financial position of the Ргоjесt, and which епаЬlе them to епsurе that the рrоjесt finanbial staiements of the Ргоjесt comply with lPSAS and WB Guidelines; , compliance with laws and regulattons of the Republic of Tajikistan, accounting system of the Ргоjесt and the rеquiгеmепts of the Wоrld Bank, О taking such stePs aS аrе геаsопаЬlу available to them to safeguaгd the assets of the project; and . detecting and рrечепtiпg fraud and оthег irregularities. The project ftnancial statements fоr the уеаr ended Dесеmьеr з1,2оlв wеrе аррrочеd and authoгized fоr issue оп Мау 6, 2019 Ьу the management of the Project. N. су of health апd social Chief rt of State Agency of health and of MHSPP of the Republic of population of MHSPP of the Republic of Tajikistan Мау 6, 2019 Мау 6, 2019 Dushanbe, the Republic of Tajikistan Dushanbe, the Republic of Tajikistan 65 Stefan cel Mare şi Sfânt Blvd 5th Floor, Office 507 2001 Chisinau Moldova T: +373 22 233003 F: +373 22 234044 info@bakertilly.md www.bakertilly.md INDEPENDENT AUDITORS’ REPORT To the management of the Project “Social safety net strengthening project” under the Ministry of Health and Social Protection of the Republic of Tajikistan and the State Committee on Investments and Government Property Management of the Republic of Tajikistan. Report on the project financial statements Opinion [1] We have audited the project financial statements of the Project “Social safety net strengthening project” (the “Project”) which comprise the summary of funds received and expenditures paid and the summary of expenditures paid by project components for the year ended December 31, 2018, and a summary of significant accounting policies and other explanatory information (the “project financial statements”). [2] In our opinion, the accompanying project financial statements present fairly, in all material respects, the summary of funds received and expenditures paid and the summary of expenditures paid by project components of the Project for the year ended December 31, 2018 in accordance with International Public Sector Accounting Standard “Financial Reporting Under the Cash Basis of Accounting” (the “IPSAS”) issued by the International Public Sector Accounting Standards Board of the International Federation of Accountants, and the World Bank’s Financial Management Sector Board’s “Guidelines: Annual Financial Reporting and Auditing for World Bank Financed Activities” (the “WB Guidelines”). Basis for opinion [3] 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 project financial statements section of our report. We are independent of the Project in accordance with the International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants (IESBA Code) together with the ethical requirements that are relevant to our audit of the project financial statements, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Emphasis of matter [4] Without qualifying our opinion, we draw attention to Note 2 to the project financial statements which describe the basis of accounting. These project financial statements were prepared for complying with the appropriate World Bank Guidelines, Grant and Additional Financing agreement requirements. Other matter [5] The project financial statements are prepared to assist the Project to comply with the requirements of the World Bank. As a result the project financial statements may not be suitable for another purpose. ADVISORY  ASSURANCE  TAX ICS Baker Tilly Klitou & Partners SRL trading as Baker Tilly is a member of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities. 3 G Ь"kегtittу Responsibilities of management and those charged with governance for the project financial statements t6] Management is responsible fоr the рrераrаtiоп and fаir pгesentation of the financlal statements in ассоrdапсе with lпtеrпаtiопаl public sector Accounting Ыапdаrd "Financiaiрrоjесt Кърогtiпg uпdег the cash Basis of Accounting" (the "lPSAS") issued Ьу the lпtегБаtiопаl Public Дссоuпtiпi Standards Board of the lпtеrпаtiопаl Federation of Accountants, and the wоrld Bank's гiпапсiаl йiпаgЁmепt sесtоr Воаrd's "Guidelines, Аппuаl Fiпапсiаl Rерогtiпg and Auditing fог World Bank Financeйctivities'' (the *WB Guidelines"), and fоr such iпtеrпаl contiol ,апаgБmепt determines is песеssаrу to епаЬlе the "s that ]rе fгее fгоm material misstatement, рrерагаtiоп of the project financial statements whеthеr due to fraud ог еrrоr. Auditor's responsibilities for the audit of the project financial statements t7l Оur objectives аrе to obtain rеаsопаьlе assurance about whеthеr the рrоjесt financial statements as а whole аrе frее frоm material misstatement, whеthеr due to fraud оr еriоr,'апd tb-issue an auditoг's rерогt that includes оur орiпiоп. Reasonable аSS_urапсе is а high level of аSSUrапсе, but is not а guarantee that ап audit conducted in ассоrdапсе with lsAs will alwaysъetect а mаtегiаl misstatement when it exists. Misstatements сап аrisе frоm frаud ог еrrоr and аrе сопsidеrеd material if, individually оr iп the aggregate, they cou]d rеаsопаьlу Ье expected to iпfluепсе the economic decisions of users taken оп the basis of the project financial statements. As рагt of ап audit in ассогdапсе with lsAs, we exercise professionaljudgment and maintain professtonal skepticism throughout the audit. We aIso: , ldentify and assess the risks of mаtеriаl misstatement of the project financial statements, whetheг due to fraud оr еrrоr, design and регfоrm audit ргосеdurеs responsive to those risks, and obtain audit evidence that is sufficient and аррrорriаtе io provide а basis fоr оur орiпiоп. The risk of not detecting а mаtеriаl mlsstatement resulting frоm fraud is highеr than fоr опе resultint t..ой .,tr"rЙ;; involve collusion, fоrgеrу, intentional omissions, йisrерrеsепtаtiопs, "ii"i оr the очеrridе of iпtеrпаl сопtrоl. , Obtain ап understanding of iпtегпаl сопtrоl rеlечапt to the audit in оrdеr to design audit рrосеdurеs that аrе аррrорriаtе in the сirсumstапсеs, but not for the рчrроsе of expressing ап орiпiоп оп the effectiveness of the project's iпtеrпаl сопtrоl. о Evaluate the аррrоргiаtепеss of accounting policies used and the reasonableness of accounting estimates and геlаtеd disclosures made Ьу management, о Conclude on the аррrоргiаtепеss of management]s use of the going сопсеrп basis of accounting апd, based on the audit evidence obtained, whether а mаtеriа| чпсе-гtаiп-tу exists rе|аtеd to events оr conditions that may cast significant doubt оп the project's ability to cbntinue as а going сопсеrп. lf we conclude that а material unceгtainty exists, We аrе геquirеd to drаw attention in очr auditoг's герогt to the related disclosures in the ргоjесt financial statements оr, if such disclosures аrе inadequate, to modify оur opinion. оur conclusions аrе based on the audit evidence obtained up to the date of очr auditor's rерогt. Ноwеvеr, future events ог conditions may cause the project to cease to continue as а going сопсеrп, , Evaluate the оvеrаll presentation, struсtчrе and content of the project financial statements, including the disclosures, апd whether the project financial statements rергЬsепt the underlying transactions and events in а mаппеr that achieves fаir ргеsепtаtiоп. t8] We communicate with those charged with gочеrпапсе геgагdiпg, among other mаttеrs, the planned :соре and timing of the audit and significant audit findingi, iпсlйiпg ап! significant deficiencies iп iпtегпаl control that we identify during очr audit. Ьл*.{',l\y L\',[ou е*А 0ur[лп15 Baker Tilly Klitou and Partners SRL Chisinau, Republic of Moldova Мау 6, 2019 "SoclAL SAFETY NET STRENGTHENING PRoJEGT,, GRдNт No. H726_TJ; GRдпtт No. D270-TJ; LодN No.6175-TJ SUMMARY ОF FUNDS RECE|VED AND EXPENDITURES PAID FoR тнЕ YEAR ENDED DECEMBER 31, 2018 US dol/ars. Fоr the year Fоr the уеаr cumulative ended ended DесеmЬеr 31, December 3'l, 201 8 2017 Opening Ьаlапсе 802 29,265 Funds received Grапt No. D270-TJ 309,065 309,065 Grant No. H726-TJ 117,611 2,968,454 Total funds received 309,065 117 ,611 3,277,519 other income 4,397 1,з71 в,742 Total receipts 313,462 1 18,982 3,284,261 Project expenses Goods, works, consultants' sегчiсеs and non-consulting services, including training and operatlng cost 225,7вз 147,290 3,195,040 TotaI project expenses 225,7вз 147,290 3"l95,040 Fоrеigп exchange loss 75 620 Other expenses ": 80 410 Closing balance 4 88,191 88,1 91 оп behalf of the of health and social protection of Ghief of State Agency of health of the Republic of Tajikistan and social of population of MHSPP of the Republic of Tajikistan Мау 6, 2019 Мау 6, 2019 Dushanbe, the Republic of Tajikistan Dushanbe, the Republic of Tajikistan The notes оп pages 7-1з form ап integral рагt ofthe project financial statements . The independent auditors' rероrt is оп pages 3-6. "SoclAL SAFETY NET STRENGTHENlNG PRoJEcT,, GRANT No. H726-TJ; GRANT No. D270-TJ; LOAN No. 6175-TJ SUMMARY ОF EXPENDITURES PAlD BY PROJECT COMPONENTS FoR тнЕ YEAR ENDED DEсEMBER 3.1, 2018 (iп US dollars) Fоr the year Fоr the уеаr Cumulative ended ended DесеmЬеr 3,1, DесеmЬеr 3.1, 2018 2017 Рагt А: National registry of social protection Рагt В: Capacity-building fоr launching nation-wide system of 25,630 72,098 2,109,056 poverty-targeted social assistance 128,920 Рагt С: Project implementation suрроrt Рагt D: Suррогtiпg national rollout of the taгgeted social 90,49; 75Jg; 847,422 assistance рrоgrаm, including the national rеgistrу of social рrоtесtiоп 225,763 147 ,290 3,195,о4о оп beha]f of the aN. of health and socaal protection of Chief ас of State Agency of health of the Republic of Tajikistan апd social of population of MHSPP of the Republic of Tajikistan Мау 6, 2019 Мау 6, 2019 Dushanbe, the Republic of Tajikistan Dushanbe, the Republic of Tajikistan The notes оп pages 7-13 fоrm ап integral рагt of the project financial Statements, The independent auditors' rерогt is оп pages З-6. “SOCIAL SAFETY NET STRENGTHENING PROJECT” GRANT NO. H726-TJ; GRANT NO. D270-TJ; LOAN NO. 6175-TJ NOTES TO THE PROJECT FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018 (in US dollars) 1. GENERAL INFORMATION According to the Agreement between the Republic of Tajikistan and International Development Association (the “IDA”, “World Bank”) dated July 13, 2011, the World Bank provided a Grant No. H726 -TJ in the amount of 2,100,000 Special Drawing Rights to the Republic of Tajikistan. According to the Additional Financing Agreement between the Republic of Tajikistan and International Development Association (the “IDA”, “World Bank”) dated March 6, 2018, the World Bank provided the Grant No. D270-TJ in the amount of 700,000 Special Drawing Rights and the Credit No. 6175-TJ in the amount of 900,000 US dollars to the Republic of Tajikistan. In accordance with the Additional Financing Agreement added new Part D “Supporting national rollout of the targeted social assistance program, including the national registry of social protection”. The period of duration of the Additional Financing Agreement is from March 6, 2018 to December 31, 2019. The Grants and Credit were provided for implementation of the Project “Social safety net strengthening project” (the “Project”). Project purpose The objective of the Project is to assist the Republic of Tajikistan in improving its capacity to plan, monitor, and manage social assistance for the poor through the development of a national registry of social protection and the provision of training, equipment, and related items for improving said capacity. The Project consists of the following parts: Part A: National registry of social protection Part B: Capacity-building for launching nation-wide system of poverty-targeted social assistance Part C: Project implementation support Part D: Supporting National Rollout of the Targeted Social Assistance Program, including the National Registry of Social Protection Part A. National registry of social protection 1. Developing a National Registry of Social Protection (the “NRSP”) for: (i) administering poverty- targeted social assistance benefits; (ii) determining eligibility for the benefits; (iii) controlling payments of these benefits; and (iv) planning and budgeting for said benefits. 2. Provision of goods, including computer equipment, printers, scanners, and electrical, telephone and internet connections, to strengthen the capacity of the Ministry of Labor and Social Protection (the “MLSP”) and community stakeholders to implement a nation-wide system of poverty-targeted social assistance. Part B. Capacity building for launching nation wide system of poverty targeted social assistance Carrying out training, workshops and seminars to build the capacity of MLSP, the Ministry of Finance and community stakeholders to launch and implement a nation-wide system of poverty-targeted social assistance as well as to maintain and operate said system. Part C. Project implementation support. Providing support for overall management and coordination of the Project and for carrying out fiduciary responsibilities, including procurement, financial reporting and accounting activities, audit, and other reporting for the Project. 7 Part D. Supporting National Rollout of the Targeted Social Assistance Program, including the National Registry of Social Protection 1. Providing support to the SASP to roll out the TSA Program, including: (i) establishing additional regional coordination centers under SASP; (ii) upgrading work places for district and Jamoat level staff, ensuring connectivity and stable electricity supply, and office logistics; (iii) conducting public awareness and information campaigns of the TSA Program, including design of a communication strategy and production of information materials; (iv) improving the mechanisms of the TSA Program beneficiary selection and benefit delivery; (v) strengthening the TSA Program grievance redressal mechanism; (vi) establishing mechanisms for participatory decision making by local communities for the TSA Program eligibility; (vii) conducting gender analysis of the TSA Program; (viii) conducting impact evaluation and beneficiary satisfaction survey of the TSA Program; and (ix) providing training to the regional, district and Jamoat staff, including central level staff of SASP and other relevant branches of the Recipient's executive branch in new procedures of the TSA Program. 2. Provide support to the SMSES to: (i) design and implement new mechanism and database of electronic disability certification; and (ii) invest in the capacity of SM SES. 3. Provide support to SASP for the development of an integrated model of public service delivery through: (i) integrating the full process of disability certification into the NRSP; and (ii) supporting the transition from paper to a centralized electronic registration of beneficiaries for at least three different programs of social Project management The Project is implemented by Coordination Group at the Ministry of Health and Social Protection of the Republic of Tajikistan. Original duration of the Project was from July 13, 2011 to December 31, 2015. According to letter from the World Bank dated August 18, 2014 there was prolongation under this Grant till June 30, 2016, as well as letter dated April 5, 2016 which stated that the closing date had changed to March 31, 2017. As described in the letter received from the World Bank dated February 3, 2017, since the Project closes on March 31, 2017 and the Project must be active to prepare additional financing, the World Bank will proceed with an extension in the current Project until September 30, 2017 to allow for time for preparation of the additional financing. Further there was one more extension of the Project term, thereby according to the received letter from the World Bank dated December 18, 2017 closing date had changed to March 30, 2018 and grace period until July 30, 2018. According to Additional Financing Agreement between the Republic of Tajikistan and International Development Association dated March 6, 2018 closing date of the Project had changed to December 31, 2019. 2. PRESENTATION OF THE PROJECT FINANCIAL STATEMENTS Basis of preparation These 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”). 8 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 project financial statements consist of: • Summery of funds received and expenditures paid; • Summery of expenditures paid by project components; • Notes to the project financial statements, including short description of main statements of accounting policy and other descriptive notes. The reporting currency of these project financial statements is US dollars (the “USD”). 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Cash basis of accounting The 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. The project financial statements prepared on the cash basis provide readers with information about the sources of cash raised during the period, the purposes for which cash was used and the cash balances at the reporting date. The measurement focus in the project financial statements is balances of cash and changes therein. Foreign currency translation Operations in foreign currency initially are counted in functional currency by the official currency exchange rate settled by the National Bank of Tajikistan (the “NBT”) on a date of operation. Funds received are translated into US dollars at official exchange rate of Special Drawing Rights (the “SDR”) at the date of funds receipt. All payments made in local currency are translated into US dollars at the official exchange rate defined by NBT, at the date of transaction. Monetary assets and liabilities expressed in foreign currency are converted to functional currency at official exchange rate on a date settled by the NBT. All foreign exchange differences resulted from maturity or recounting are included in the summery of funds received and expenditures paid. Non-monetary items are valued according to their historic cost in foreign currency, which are recalculated on rates of the 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. Balances of advances paid to employees at the end of the period are also part of closing cash position. Taxes Calculation and payment of personal income tax and social security contributions from income of local staff and consultants is made in accordance with the requirements and rates of the Tax Code of the Republic of Tajikistan and relevant legislation of the Republic of Tajikistan. Project expenses The expenses are recorded in the period when they were actually paid. 9 Sources of funds The funds were provided by the World Bank to the Project by advance, replenishment of designated account or through direct payment to the end supplier of goods and/or services. 4. CASH AND CASH EQUIVALENTS Cash and cash equivalents as at December 31, 2018 and 2017 comprise: Currency Source of financing December 31, December 31, 2018 2017 Designated account USD Grant No. D270-TJ 86,048 - Designated account USD Grant No. H726-TJ - - Transit account TJS Grant No. D270-TJ 1,830 - Transit account TJS Grant No. H726-TJ - 802 Cash on hand TJS Grant No. D270-TJ 313 - 88,191 802 5. FUNDS RECEIVED The funds received were presented by the following financing methods and source of financing: For the year For the year Cumulative ended ended December 31, December 31, 2018 2017 Grant No. H726-TJ Advances - - 160,000 Reimbursement of expenses - 117,611 2,808,454 - 117,611 2,968,454 Grant No. D270-TJ Advances 200,000 - 200,000 Reimbursement of expenses 109,065 - 109,065 309,065 - 309,065 309,065 117,611 3,277,519 10 6. CUMULATIVE PROJECT EXPENDITURES The Project expenses by components are presented in the summery of funds by project components. The Project expenses on major categories are presented in the summery of funds received and expenditures paid. Breakdown of the Project expenses by nature is presented as follows: Goods, works, consultants’ services and non-consulting services, including training and operating cost For the year ended For the year ended Cumulative December 31, 2018 December 31, 2017 Grant Grant Total Grant Grant Grant Total No. D270-TJ No. H726-TJ No. H726-TJ No. D270-TJ No. H726-TJ Payroll and related taxes 128,827 - 128,827 78,721 128,827 562,419 691,246 Equipment, software and generators for the database and pilot regional districts 15,318 - 15,318 - 15,318 599,178 614,496 Consulting services - - - 29,230 - 539,116 539,116 Salaries and administrative expenses of social workers and couriers of the State agency for social protection of population of the Republic of Tajikistan - - - 9,251 - 272,989 272,989 Office furniture - - - - - 242,570 242,570 Forms and folders of targeted social assistance 54,666 - 54,666 - 54,666 76,412 131,078 Vehicles - - - - - 98,137 98,137 Office renovation - - - 1,495 - 76,879 76,879 Communications 3,392 802 4,194 10,733 3,392 61,867 65,259 Copiers - - - - - 63,823 63,823 Trainings - - - - - 62,730 62,730 Audit costs 2,000 - 2,000 6,000 2,000 59,824 61,824 Computer equipment - - - - - 51,155 51,155 Containers for shipping and storage applications of targeted social assistance - - - - - 47,384 47,384 Transportation services - - - - - 39,949 39,949 Business trips 12,180 - 12,180 730 12,180 21,120 33,300 Stationery and household goods 1,665 - 1,665 6,852 1,665 19,510 21,175 Fuel 5,393 - 5,393 2,894 5,393 15,107 20,500 Information campaign in pilot districts - - - - - 14,868 14,868 Study tours - - - - - 10,296 10,296 Software - - - - - 9,265 9,265 Workshops - - - - - 6,706 6,706 Bank charges 1,234 - 1,234 868 1,234 5,325 6,559 Utility - - - - - 3,299 3,299 Advertising expenses 286 - 286 - 286 996 1,282 Other - - - 516 - 9,155 9,155 224,961 802 225,763 147,290 224,961 2,970,079 3,195,040 11 7. FINANCIAL POSITION Financial position as at December 31, 2018 and 2017 comprise of: December 31, December 31, 2018 2017 ASSETS AND EXPENDITURES Cash and cash equivalents 88,191 802 Cumulative expenses 3,195,040 2,969,277 Foreign exchange loss 620 310 Other expenses 410 410 TOTAL ASSETS AND EXPENDITURES 3,284,261 2,970,799 FINANCING Funds received 3,277,519 2,968,454 Other income 6,742 2,345 TOTAL FINANCING 3,284,261 2,970,799 8. WITHDRAWAL APPLICATIONS Withdrawal applications for the year ended December 31, 2018 comprise: Sources of Application Date Advance Goods, works, Total financing consultants’ services and non-consulting services, including training and operating cost Grant No. D270-TJ 1 September 11, 2018 200,000 - 200,000 2 November 19, 2018 - 42,667 42,667 3 November 30, 2018 - 66,398 66,398 200,000 109,065 309,065 9. SPECIAL ACCOUNT Special account for the period from January 1, 2018 to December 31, 2018 comprise: Bank OJSC “Eskhata Bank” Currency US Dollars Bank account 20206840000020100254 Bank’s location 69 Shevchenko str. Dushanbe, the Republic of Tajikistan Balance as at January 1, 2018 - Advance 200,000 Reimbursement of expenses 109,065 Total funds received to the designated account 309,065 Expenses paid 15,865 Transfer between accounts 207,152 Balance as at December 31, 2018 86,048 12 10. UNDRAWN FUNDS As at December 31, 2018 undrawn fund is presented as follows: Grant Grant Loan No.D270-TJ No. H726-TJ No. 6175-TJ in SDR in SDR in USD Approved financing amount 700,000 2,100,000 900,000 Disbursed during the period from July 13, 2011 to December 31, 2018 221,934 2,099,736 - Undrawn financing amount 478,066 264 900,000 Financing received as at January 1, 2018 - 2,099,736 - Disbursed in 2018 221,934 - - Financing received as at December 31, 2018 221,934 2,099,736 - 11. COMMITMENTS In the normal course of activities, the Project concludes agreements with suppliers of goods and services in accordance with the established budget and procurement plan. As at December 31, 2018 the Project had commitments for covering consulting service in the amount of 14,025 US dollars to Arzibaev A. for development of technical for databases for disableds. 12. LEGAL CASES There were no any legal cases related to the Project. 13. EVENTS AFTER THE REPORTING DATE Sources of Application Value Date Direct Payment Goods, works, Total financing consultants' services and non-consulting services, including training and operating cost Grant No. D270-TJ 4 January 16, 2019 142,679 - 142,679 5 March 1, 2019 - 115,896 115,896 6 March 20, 2019 251,982 - 251,982 7 May 20, 2019 - 107,202 107,202 As at the date of issue of the project financial statements no other significant events or transactions occurred, except for the events or transactions described above. 13