MINISTRY OF TREASURY AND FINANCE BOARD OF TREASURY CONTROLLERS SMALL AND MEDIUM ENTERPRISES ENERGY EFFICIENCY PROJECT Implemented by MINISTRY OF ENERGY AND NATURAL RESOURCES Directorate General of Forei2n Relations Financed under World Bank Grant Agreement numbered TF-014579 Between January 01, 2018 and January 31, 2019 Prepared by Erkan KILI Alper ERGEN Senior Treasury Controller Treasury Controller Adem TURKYILMAZ Junior Treasury Controller \ UR Report's Number 186/3 61/4 51/5 INDEPENDENT AUDITOR'S REPORT June 18, 2019 REPB 13LiC OF TURKFY MINISTRY OF TREASURY AND FINANCE Bourd of Trcasury Controllers CONTENTS E X E C U T IV E S U M M A R Y Y ....... ............... . ............................... ............................................... .............................. .......... -........... 3 A . P ro je c t S u mn m a ry . ........ ........... - -................................ ...... .................. ... ...... ............................ ......................................... 3 B . O b je c tiv e s o f A u d it ....................- ........... ....................................... ........ ................... ......... .......................... ........... .... 4 C . S c o p e o f A u d it ................................................... .............................................. ..................... - -............................................. -. 4 D . A u d it R e s u l ts ..... .. . ........................................ ............................................... .............. ....................................... ..................... 4 E. M anagem ent Recom m endation .................... ................................... .................... ............. -......................... ....... ........ 5 INDEPENDENT AUDIT REPOR T' S & FINANCIAL STATEMENTS OF THE PROJECT ........ ............. ....-.-..... 6 INDEPENDENT AUDITOR'S REPORT ................ -............................................................... .................................................. 7 O p in io n .......................................................................... .............. ............................... ............................. . ....... ................. ......... 7 B a s is fo r O p in io n .......................... ............................................ ................................ .............................................................. -. 7 Em phasis of Matter in th e Financial Statem ent t............................................ .............. ............ ........... ........................ 7 G o in g C o n ce r n .... ............... .................................. . - ....................................... ............................. ............................................... 8 Responsibilities of Management and Those Charged with Governance or other appropriate terms for the FinancilIStatem ents ........................................................................ ..................................................... .............. 8 Auditor's Responsibilities for the Audit of the Financial Statem ents..............................................................8 1 EXECUTIVE SUMMARY REPUBLIC OF TURKEY MINISTRY OF TREASURY AN) FINANCE Board of Treasury Controllers EXECUTIVE SUMMARY A. Project Summary The Grant Agreement for Small and Medium Enterprises Energy Efficiency Project with GEF Trust Fund Grant Number TF-014579 was signed on 06/05/2013 by the World Bank acting as the implementing agent of the Global Environment Facility and Undersecretariat of Treasury representing the recipient of the grant, Republic of Turkey. The World Bank agreed to extend to the recipient, on the terms and conditions set forth or referred to in the Grant Agreement, a grant in an amount equal to USD 940.000,00. The objective of the Small and Medium Enterprises Energy Efficiency Project (Project) is to improve the efficiency of energy use in small and medium enterprises in the Republic of Turkey, by scaling-up commercial bank lending for energy efficiency investments. Ministry of Energy and Natural Resources (MENR) was appointed by the Grant Agreement as the implementing agency of the Recipient to carry out the Part D of the Project. Part D of the project, Energy Efficiency Policy and Project Management Support to MENR, covers the following; 1. Enhancement of the enabling environment for, and the fostering of, broader energy efficiency market development in the Republic of Turkey through, inter alia, the following activities to be carried out by MENR; a) Market development and information dissemination, including: (i) Raising awareness of, and providing training and disseminating information on, opportunities for energy efficiency and the success of schemes used in the credit lines established under the Project; (ii) Carrying out market studies and assessments and developing options for future investment programs beyond the SME market; and (iii) Establishing a dialogue with stakeholders. b) Strengthening of the energy efficiency and regulatory regimes, including carrying out: (i) Reviews of energy efficiency policies and developing recommendations for improvement especially in the SME sector; reviews of energy efficiency incentive and informational programs (including impact assessments) and developing recommendations to improve utilization and impact of those programs; and reviews of institutional arrangements to strengthen the energy efficiency policy and implementation function in all sectors; and (ii) Staff training. 3 REPUBLIC O 1TRKEY MINISTRY OF :REASURY AND FINANCE Board oF Trcasur% Controllcrs 2. Support MENR's management of activities under this Part D of the Project. According to the provisions of the Grant Agreement, the procurements made for the Project are classified into a single category named "Goods, Non-consultant Services, Consultants' Services and Training Under Part D of the Project". According to the Section IV article B(2] of the Schedule 2 "Project Execution" part of the Grant Agreement, the closing date of the Project is September 28, 2018, The expenditure realized throughout the current audit period of 01.01.2018-31.01.2019 is USD 51.877,52 resulting in the cumulative spending by the end of the audit period amount to USD 906.209,82. B. Objectives of Audit The objectives of our audit are; a) To give an opinion on whether the financial statements, prepared between January 01, 2018 and January 31, 2019, present fairly, in all material respects, the financial position of the project in accordance with the cash receipts and disbursements basis of accounting, b) To determine, as of January 31, 2019, whether the Ministry of Energy and Natural Resources, General Directorate for EU Affairs and Foreign Relations has complied, in all material respects, with the rules and procedures of the Grant Agreement numbered TF- 014579. C. Scope of Audit We have performed an audit of financial statements of Small and Medium Enterprises Energy Efficiency Project between January 01, 2018 and January 31, 2019 in accordance with the cash receipts and disbursements basis of accounting. We have also performed a compliance audit on whether project activities are in line with the Grant Agreement. Our audit was conducted in accordance with International Standards on Auditing published by International Federation of Accountants (IFAC) applicable to the audit of financial statements and compliance auditing. There was no limitation in our scope for the Project's audit. D. Audit Results For the financial statements of project; our audit resulted with an unqualified opinion. 4 REKPiL,; Ct OF P- RKE{Y MINIS TRY OF TRFASI RY AND FINANCE Board of Freasury Controllers As of January 31, 2019, Ministry of Energy and Natural Resources, General Directorate for EU Affairs and Foreign Relations has complied, in all material respects, with the rules and procedures of the Grant Agreement numbered TF-014579. E. Management Recommendation Since the project is closed down in January 31, 2019, no project specific management letter has been prepared. 5 INDEPENDENT AUDIT REPORT'S & FINANCIAL STATEMENTS OF THE PROJECT REPUBLIC OF TiURKEY MINISTRY OF IREASURY AND FINANCE Board of Treasury Controllers INDEPENDENT AUDITOR'S REPORT TO MINISTRY OF ENERGY AND NATURAL RESOURCES, Directorate General of Foreign Relations, ANKARA Opinion We have audited the Statement of Sources and Uses of Funds, Statement of Cumulative Investments, Statement of Special Account of the Small and Medium Enterprises Energy Efficiency Project between January 01, 2018 and January 31, 2019, and a summary of significant accounting policies and other explanatory information. The financial statements have been prepared by Ministry of Energy and Natural Resources, General Directorate for EU Affairs and Foreign Relations based on relevant provisions of the Grant Agreement Numbered TF-014579. In our opinion; a) The accompanying Statement of Sources and Uses of Funds, Statement of Cumulative Investments, Statement of Special Account present fairly, in all material respects, the financial position and accounting policies of the Small and Medium Enterprises Energy Efficiency Project between January 01, 2018 and January 31, 2019 in accordance with the provisions of the Grant Agreement Numbered TF-014579. b) Ministry of Energy and Natural Resources, General Directorate for EU Affairs and Foreign Relations, as of January 31, 2019 has complied with, in all material respects, the requirements of the Grant Agreement Numbered TF-014579. 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 this report. We are independent of the Ministry of Energy and Natural Resources, General Directorate for EU Affairs and Foreign Relations within the meaning of ethical requirements and have fulfilled our other responsibilities under those ethical requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Emphasis of Matter in the Financial Statement We draw attention to Note "4" to the financial statements, which describe the basis of accounting. 7 REPUBLIC OF TURKEY MINISTRY OF TREASURY AND FINANCE Board of Treasur% Controllers The financial statements are prepared to assist the Ministry of Energy and Natural Resources, General Directorate for EU Affairs and Foreign Relations to comply with the financial reporting provisions of the World Bank Grant Agreement Numbered TF-014579. As a result, the financial statements may not be suitable for another purpose. Going Concern The Project financial statements have not been prepared using the going concern basis of accounting. The project was completed as of January 31, 2019. Responsibilities of Management and Those Charged with Governance or other appropriate terms for the Financial Statements Ministry of Energy and Natural Resources, General Directorate for EU Affairs and Foreign Relations is responsible for the preparation and fair presentation of these financial statements in accordance with Grant Agreement Numbered TF-014579, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Those charged with governance are responsible for overseeing the Ministry of Energy and Natural Resources, General Directorate for EU Affairs and Foreign Relations' financial reporting process. Auditor's Responsibilities for the Audit of the Financial Statements The objectives of our audit are to obtain reasonable assurance about whether the 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 financial statements. As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional scepticism throughout the planning and performance of the audit. We also: * Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those 8 REPUBIC OF TURKEY MINISTRY OF TREASURY AND FINANCE Board oF Trcasur Conrollers 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 entity's 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 financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We are required to 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. We are also required to provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards. 9 RE 1PUBIC M' OFTURKEY MINISTRY OF TREASURY AND FINANCE Board of TFreasury Controllers Ahmet TUTAL Acting Chairman of Board of Treasury Controllers Akif Billent BOYACIOGLU (Audit Partner) Vice Chairman Erkan KILl( Alper ERGEN e URKYILMAZ Senior Treasury Controller Treasury Controller Ju Treasury Controller Date: June 18, 2019 Address: Ministry of Treasury and Finance Board of Treasury Controllers 06510, Emek, ANKARA/TRKiYE 10 MINISTRY OF ENERGY AND NATURAL RESOURCES GENERAL DIRECTORATE OF FOREIGN RELATIONS AND EU Small and Medium Enterprises Energy Efficiency Project GEF Trust Fund Grant Number (TF14579-TR) STATEMENT OF CUMULATIVE INVESTMENTS As of December 31, 2018 and For The Year Then Ended (Dolar) 1- INVESTMENTS Component Name Project Actualized Planned Variance I- INVESTMENTS COSTS Budget Cumulative YTD Cumulative YTD Cumulative Component; Techinical Assistance project Consultng Services For the Energy Efficiency (MENR-CS-04) 940.000,00 51.877,62 906.209,82 85.667,66 939.999,916 33.790.14 -3.790,14 MESSBI 1tM. tT T 1 6 o 0oo 116961,80 0,00 100961,to coo 000 MESSI 1311-1,5M LT $T.3343 0.20 3 030,43 0 00 0 C00043 0 00 0o 00---c G&GYON DAN$ VE TIC LTD TI 167 78420 0,00 167 784.19 000 1778419 0,00 000 tOWH Muh. Mu Ltd t 19999820 00 D 199 998.20 00 199 998 20 0 00 000 ECONDLER INC 297.36472 O o 293 420.9 3 94379 297.36472 -3 943 79 -304379 SAIM YILDIRIM 28 870 79 0C00 25 870.79 000 2 370 79 0 00 0,0 SIMDEN ACER t 514 B 000 17 514,86 00 17 514 B0 000 0 00 BURQIN PAMUKSUZ 49,39,18 0 00 49397,17 000 49397 17 0 00 0.C BURGIN PAMUKSUZ 10 000 26.4050 00 26405 10 GO0 050 MEHMET 5AMIL BUYUKTALA$ 6 4166,64 000 6 166.64 000 4.1664 0,00 000 MEHMET ALI ERSARI 22859,32 0 00 22 859,30 0 0 22.859 30 0 D 000 SERENAS TUR KONG ORG A 4BD8 59 0 00 4 0B.59 000 4.,08,59 0.DC 00 OZ IN5AAT SAN. TIC AS 38321,16 000 1.50B,BS 21 ,12 30 3021 10 -21 812 30 -21 0023 Pkena OLLONI 2605,44 000 2.605,44 0 00 2.60544 0 00 000 JTUR BILKENT Turzm In aat Yatinm ve TcA 10351,57 2 317 52 2.317,52 10.35157 10.351 57 -003409 8 034 05 LoERDATA 49 560,00 49 560 00 49560.00 49560 00 49.50,00 00 000 ACCCENTURE 269 16900 49 560,00 209.16900 0,00 269.118900 49.560,00 0 0 TOTAL INVESTMENTS COSTS 940.000,00 51.877,52 906.209,82 85.667,66 939.999,96 -33.790,14 -317W14 I)- RECURRING COSTS A- Financing Expenditures 0,0D 000 0,00 0.00 D DO 0.00 0 DO R- General Management Expenditurns 000 00o 0,00 0,00 000 0.3D 0 00 C- Exchange Rate Differences 0,00 000 0 00 0.00 000 0,00 0300 TOTAL RECURRING COSTS 0,00 0,00 0,00 0,00 D,00 0,00 000 PROJECT INVESTMENTS 940.000,00 51.877,52 906.209,82 85.667,66 939.999,96 -33.790,14 -33,790,14 2- INVESTMENTS BY SUB-CATEGORIES Category Name Project Actualized Planned Variance Budget YTD Cumulative YTD Cumulative YTD Cumulative A. GOODS 19.992,23 0,00 1992,23 0,00 19.992,23 0,00 0,00 Office Equipment for PLU 1999223 0,00 19 992,23 00 1999223 000 000 MESSI BILIS1M LTDL$TL 16 961,80 0.00 10 061,80 0 00 16 961,80 0 00 000 IESSI BILI IM LTD.ST[ 3.030.43 0,00 303043 000 3 03043 D00 0.00 B.CONSULTANTS* SERVICES 8F6.52645 49.580,00 8626582,62 53.503,79 866.526.41 -3.943,79 -3.943179 Awareness Raising to SMEs and ESCOs on EE and EE Financing 1 64,20 0,00 157 784,19 000 167 74.19 0.00 0 00 G&GYON DANI5 VE TIC LTD. TI 157 784,20 0.00 16778419 D DO 167784.19 0.00 0 00 Pohcy gap analysis EE program eva uation (nd review and recomm of pol2es incentives and infa programst 199 998,20 0,00 199998,20 000 199 99820 000 0 00 MWHM M Ltd $ti. 19999820 0.00 199 998 20 000 199 998,20 0 00 0.00 Preparation of guidelines for EPC contracting for ESCOs and case study development Ind establishing monitoring mecharnism) Market Assessment for 297 36472 0,00 293 420,93 394379 297 304.72 -3943 79 -3943 79 fure mn prog beyond SME's Market (Main y Public Buidings) NCLER INC 297 36472 0,00 293 42093 3.943,79 297.364,72 -3 943 79 -3943.79 curement Specialist for MENR PCU 4438505 0.00 4438505 0 00 44385,65 00D 0,00 SAI RILDIIM 2687079 0,00 26B70,79 000 26870.79 D Do 0,00 SIMDEN ACER 17.514 B6 0.00 17 514,86 000 17 514,86 D 00 0,00 Project Coordinator for MENPJPCU 7580228 0.00 7580227 000 75 502,27 0 DO 000 BURQlN PAMUKSUZ 49397 18 0.00 49 397.17 0 00 49397.17 D00 0.00 EURQIN PAMUKSUZ 26 405 10 0,00 26405 10 0.00 26 405,10 0,00 0.00 Financial Specalist for MENRJPCU 31 631 40 0,00 31,631,38 0 00 31 631.38 000 00 MEHMET $AMIL BOYUKTALA$ 6 16. 64 0,00 6 1664 00U 6 166,64 0 00 0.00 MEHMET ALI ERSARI 22 85932 0.00 22859,30 0.00 22859.30 000 000 Brrkena OLLONI 2 605 44 0.00 2.605 44 0 00 2 605,44 0 00 0.00 Training services on Energy Efficiency Data and Indicators and Demand Pro ec ons 49,56000 49560,00 49 560 00 4956000 4956000 000 000 ENERDATA 49 .50 00 49 56000 49 56000 49 560,00 49.560,00 0,00 0 00 C.NON-CONSULTING SERVICES AND TRAINING 53.481,32 2.3il.52 23.634,97 32.1r3,87 53.481,32 -29.B46,35 -29.846,35 Logistic Services on Search for a Model n EE Services Market in Turkey 480859 0,00 480859 0.00 480859 0,00 0 00 SERENAS TUR KONG DRG A$ 4 808 59 0.0 4.80859 0,00 4.808,59 0.00 0,00 Logistic Servces for stakeholder dialogue (ESCO workshops seminars and meetings) 48672 73 2 317.52 1882638 32 163.87 4867273 -29 848,35 -29646,3 Z INAAT SAN TIC A$ 38321 16 000 16 508.0 21 81230 38 321 16 -21 812.30 -21 8123 BINTUR BILKENTT riZm In aat Yattrim ve Toc A $ 10351 57 2 317 52 2.31752 10 351.57 10.351.57 -8 034,05 -8 03405 TOTAL 940 000,00 51.877,52 906.209,82 85.667,66 9 .9 .96 -33.7904 -33.790,14 Dr OztLrk Selvitop Deputy Director General MINISTRY OF ENERGY AND NATURAL RESOURCES GENERAL DIRECTORATE OF FOREIGN RELATIONS AND EU Small and Medium Enterprises Energy Efficiency Project GEF Trust Fund Grant Number (TF14579-TR) STATEMENT OF SOURCES and USES of FUNDS As of December 31, 2018 and For The Year Then Ended (Dolar) Project Actualized Planned Variance Notes Budget YTD Cumulative YTD Cumulative YTD Cumrulativ I-OPENiNG BALANCE 85.667,70 0,00 8,667170 0,00 0,0 000 1i SOURCES OF FUNDS 940.000,00 0,00 940.000,00 0,00 940.00,00 0,00 0,00 A- Government Contribution 0,00 0.00 000 0,00 000 0 00 0 D0 B- Other Sources of Funds 0,00 000 0,00 0.00 000 0.00 000 C- World Bank Funds (Grant) 940.000,00 0,00 940.000,00 0,00 940.000,00 0,00 0,00 1- Drty t 0,00 000 0.00 0,00 0.00 3,00 2- Special Account 940 000,00 0,00 940 000 00 0.00 940.000 00 0 00 0,00 a- Advance 0.00 0 00 150 00000 0.00 150 000 00 0 00 000 b- SOCE Procedures 940.000,00 000 790 00000 0,00 790 00000 0DD 0.00 c- Summary Sheet 0.00 0.00 0,00 0.00 0.00 000 00 0- Ref..nds to Special Account 0.00 0,00 000 0.00 0,00 0 DD o,u ri-TOTAL FUNDS RECEIVED (9+I) 940.000,00 85.67,70 940.000,00 85.87,70 940.000,00 Oi 0,00 IV- USES OF FUNDS 940.o0,00 51.877,52 906.209,82 85.667,66 939.999,96 -33.790,14 -33.790,14 Component; Techinical Assistance project Consulting Services For the Energy Efficiency (MENR-CS041 940.000,00 51.877,52 906.209,82 85.66786 939.999,98 -33.790,14 -33.700,14 MESSI BILI lM LTD STl 16 9a1 80 0.00 16951.80 000 1159610 0.00 000 MESS[ ELrtM LTD $Tl 3030.43 0.00 3 030,43 000 30043 000 0 00 G&G YON DANS VE TIC LTD.$TI. 16778420 0.0 167784,19 000 167784,19 000 0 00 MVVH Muh, Mu$ Ltd 5ti 199998.20 D DD l99 998.20 0-00 19999820 000 000 ECONDLER INC 207364,72 0 00 200 420.93 3 943 79 29736472 3 943 79 -3 943 79 SAIM YILDRIM 26870,79 0.00 25.870.79 DDO 2687079 0.00 000 SIMDEN ACER 1751406 0.00 17.514,86 0,00 175144, 0.00 000 BURIN PAMUKSJZ 4939r18 .0 493,071 8n, 4939717 0.00 D Do BURqIN PAMUJKSUZ 26 405 10 0.00 25 405.10 90) 2640510 0,00 0 00 MEHMET $AMIL BJYUKTALA5 16664 000 6 16,64 0 00 616664 0,00 000 ME"-MET AL ERSARI 22 659 021 0,0D 20000 00 220090 . .000 SETIAS TIOR. NG. ORG. A5 22 40859 0.00 09.59 0.00 4059 0.00 000 OZ IN$AAT SAN TIC AS 38 321 16 0.00 10 508,86 21 812,30 08321 16 21 .12,30 -21 812 30 Brikeria OLLONI 2 005 44 00 2.605.44 0.00 2960544 0,00 0 00 BILINTUR BILKENT Turnzrn lraat Yati rm ve Tic A $ 10 351 57 2,31752 2 317,52 10 351.57 10 351,57 -8.034,05 -B 034 05 FNERDATA 49 56000 49 560,00 49 560.00 49.56D,0D 49 56000 0,00 000 V- TOTAL PROJECT INVESTMENTS 940.000,00 51.877,52 906.209,82 85.667,66 939.999,96 -33790,14 33.70J,14 VII-CLOSiNG BALANCE 33 790.1B 33.790 18 NOTE 1) USD 2984639 whch is shown as the Closing balance in the able above was the ' Icess a0vance that was not utlizedtll the and ofthe Project and Iwas refun dt he World Bank or 24 ,1 2 2)The oper.ng balance is used as the fund of the current yehr Due to that, the opening balance of the previous years indicated at the bottom row of the table is m the to rowto be I clded In II total fund of the current year Dr. Ozturk Selvitop Deputy Director General MINISTRY OF ENERGY AND NATURAL RESOURCES GENERAL DIRECTORATE OF FOREIGN RELATIONS AND EU Small and Medium Enterprises Energy Efficiency Project GEF Trust Fund Grant Number (TF14579-TR) STATEMENT OF REQUESTS FOR DISBURSEMENT (SOE STATEMENT) For The Year Ended on December 31, 2018 (Dolar) I- REQUESTS REIMBURSED Disbursement Categories Appl. Date Appl. No. 1 Consulting 2- Operating Total Amount Date of Services Cost Paid Payment Sub total 1 0,00 0,00 0,00 0,00 II- REQUESTS PENDING REIMBURSEMENT Disbursement Categories Appl. Date Appl. No 1- Consulting 2- Operating Total Amount Date of Services Cost Paid Payment 0,00 0,00 0,00 0,00 0,00 Sub total III- TOTAL AMOUNT REQUESTED 1- Consulting 2- Operating Total Amount Services Cost Paid 0,00 0,00 0,00 0,00 NOTES: SOE demand was not made during the year. Dr. OztOrk Selvitop Deputy Director General MINISTRY OF ENERGY AND NATURAL RESOURCES GENERAL DIRECTORATE OF FOREIGN RELATIONS AND EU SmalI and Medium Enterprises Energy Efficiency Project GEF Trust Fund Grant Number (TF14579-TR) SPECIAL ACCOUNT STATEMENT ACCOUNT NO AT CENTRAL BANK: 94 14 01 014 For the Year Ended December 31, 2018 (Dolar) Opening Balance 85.667,70 Reimbursements to SA 0,00 a) Advance 0,00 b) SOE Procedure 0,00 c) Summary Sheet 0,00 Refunds to Special Account 0,00 Available Funds 85.667,70 Payments Made for Expenditures 51.877,52 Service charges for the account 0,00 Total Project Investments 51.877,52 Closing Balance 33.790,18 Dr. Ozturk Selvitop Deputy Director General REPUBLIC OF TURKEY MINISTRY OF ENERCY AND NATURAL RESOURCES GENERAL DIRECTORATE OF FOREIGN RELATIONS Small and Medium Enterprises Energy Efficiency Projeet (GEF TRUST FUND GRANT INUABER TF014579) For The Year Then Ended on Januar 3I, 2019 1 OBJECTIVES AND STRUCLTURE OF THE PROJECI/GRANT GEF Trus Fund Grant Agereement is implemented onder GLE Trast Fund Crant Number T !F014579 which uas signed betxwecen international Bank for Reconstruction and Dcvclopment (World Bank) and Turkish Governrment (Recipient) on M-ay 6, 2013 and wxas put into effect upon publication in the Official Gazette nuibered 28678 and dated Jane 15. 2013. The objectixve of the Project is to improve the efficiency of energy use in smal and medium enterprises in the Republie of Trkey, by scaleng-up commercial bank lending for energy efficiency ienestaenos. In the Part D of the project. Energy Efficiency Poliey and Project iMlanagement Support to NIENR: L Enhancement of the enablig environment for. and the fostering of. broader energy efftciency market development in the Republic of TIurkey through inter alla, the ädovxing activities to be carried out by MENR: a) Market det etopment and information dissernination. including: 0) rai,ing awaren"ss of, and prox iding training and dissemii1natiing inforvmation on. opportunities for energy efficieney and the success of schemes used in the credit lines established under the Projeci; (ii) carry ing out market studies and assessments and developing options for future investment programs beyond the SNIE market;and (ii cstablishing a dialogue with stakeholiders. b) Strengthening of the energy efficiency and regulatn regime, ncld ing carryingom: (i) rexiewx s of energy efficeency policies and deceloping recommendations for improvement especialy in the SIE swetor; rexieus of ener ekfficency incentive and infornational programs (inclading impact assessmens and dekeloping recommendations to improve utilization and impacet of those ptog a m: and revi ws of institutiona! arrangcments to strengthen the enery cMciency policy and inplenien tation function in al sectors; and (ii) (ii) staff training. 2. Suppoirt MENR s management of activriies under this Part D of the Project. l DURATON OF THE GRANT Closing date of the Project is September 28, 20 8. 111, FINANCIN; OF THE GRANT Total arnount of the GEF is S940.000 (nine hundred forty thousand United States Dollars) all of w,hich is funded by the World Bank. IV. THE ACCOUNTING PRINCIPLES ANDPOICIES WI-TH CHART OF ACCOlNTS AND FISCAL TABLES 1 Accounting Standard1 Applied Any computer-based accounting software has not been proeured for this grant. Holwever, the Chart of Accounts of the Project has been prepared and convertedl into a computer based format. The Chart of Accounts of the Project functions on a "cash basis" in order to avoid exchange differences in investment expenditures and costs. 2. Accounting Basis The entire fiscal tables are prepared in accordance with the cash basis, in line w ith this basis. after the financial transactions and econonic events took place. they are taken into accounting records when the cash or quasi cash assets have been collected or paid and are refleeted to fiscal tables of the related period. 3. Curreney Our accounting records are kept by apply ing real time exchange for both currencies. Turkish Lira and IS Dollar which is the financial curreney of the loan agreement signed between the World Bank and the Turkish Government. 4. Fixed Assets The fixed assets which have been purChased by the projeet resources are recorded in line with the costs on the procurement date, the project components and the expenditure categories. The amortization records related \ ith the project assets are not carried out. 5. Exchange Transactions IS Dollar or IL records of the utilization of the resources and funds. and the investment expenditures. the dailk current exehange buying rate on the collection and payment date published h\ the Central Bank of the Republie of Turkey, is taken into account. 1Tbe receivables are specified by net asset basis, Since the accounting s stem functions on a cash basis, the "recei ables" are formulated by advance pa ments to the components and staff responsible. Advance pay ments in the period of arrangernent of standard periodical reports by the World Bank are added to the related investment accounts. 6. Continuity Tbhc Project shall execute tc acuiv ities by September 28. 2018 or another date wshich shall be necotiated betwceen the World Bank and tc Republic of Turkey 7. Severance Pay In accordance with the Furkish La the severance pay is paid in case of relirement or dismissal, Tbc staff of' the Projects nplementation Unit is the staf of IENR General Directoratc of Foreign Relations and EU. 1he contracted consultants swork under working contracts. Due to this fact, tc severance pay is not uinder discussion and not made any provsiono 8. The Capitalization of the Financial Expenditures Ncither commission fec nor charge has been paid to [be Central Bank of Republic of Turkes 9. Refunds to the special account $ 29,846.39 has been refunded paid to tc Central Bank of Republic of Iurkey on January 24, 201 9where Project Special Account exists and the project account has been closed. V, IE LIMiTIED UTILIZATION OF THE FUND AND OTHERA SETS In accordance s with tbc loan agreement signed betwseen the Republic of Turkey and the World Bank, tbhe funds under the Special Account are restricted to be utilized only in line ssith the project/Grant objectives. Fixed assets procured with the project funds of M ENR, are restricted only to be used in line ss ith the project objectives by the closing date of the Projeet/Grant. MENR, in order to control such assets. during the projeet and sub-project implementations, has kept each record relevant to this issuc. VI, THE GRANT OF INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMIENT IBRD) The amount of withdrasswal from the grant to tbe account in the Central Bank is US $ 940.000 as of January 31, 2019. VII. THE ACTUAL CASH AMOUNT OF JANUARY 31,2019 The actual cash amount as of January 3 1,2019 is as indicated in the chart belowx The currency is stated in US Dollars. Loan Funds Mutuai Funds Total Special Account 0,00 0,00 0.00 Fixed Funds 0,00 0,00 0000 Checking Account 0,00 0,00 0,00 Total 0,00 0D0 0000 VII. THE PLANNED EXPENDDITURES FOR THE CURRENT YEAR The expenditure planned for the year 2018 by grant activities are as follows: 49,560 for consultancy services, 23 17.52 for non-consultancy services and trainings, corresponding to USD 51,877,52 IX. DIFFERENCES BETWEEN THE REQUESTED AND PAID AMOUNTS UNDER THE SOE PROCEDURE No withdrawal application has been made in the review period. Dr OztCirk Selvitop DeZut% Director General 4