JSDF GRANT FOR BUILDING DEMAND-SIDE CAPACITY FOR EFFECTIVE LOCAL GOVERNANCE PROJECT JSDF CRANT No. TF010208 IMPLEMENTED BY COMMUNITY DEVELOPMENT AND INVESTMENT AGENCY SPECIAL PURPOSE FINANCIAL STATEMENTS AND INDEPENDENT AUDITOR'S REPORT For the period from 01 January, 2015 to 9 July, 2015 BISHKEK August 2015 JSDF GRANT FOR BUILDING DEMAND-SIDE CAPACITY FOR EFFECTIVE LOCAL GOVERNANCE PROJECT JSDF GRANT NO. TF010208 TABLE OF CONTENTS Page STATEMENT OF MANAGEMENT'S RESPONSIBILITIES FOR THE PREPARATION AND PRESENTATION OF THE SPECIAL PURPOSE FINANCIAL STATEMENTS 3 INDEPENDENT AUDITOR'S REPORT 4-5 SPECIAL PURPOSE FINANCIAL STATEMENTS For the period from 1 January 2015 to 9 July 2015: Statement of cash receipts and payments 6 Statement of expenditures per components 7 Summary of Summery Reports and SOEs 8 Statement of Designated Accounts 9 Notes to the special purpose financial statements 10-15 ANNEX 1. RECONCILIATION BETWEEN THE AMOUNTS SUBMITTED BY THE ARIS AND DISBURSED BY THE WORLD BANK 16 2 STATEMENT OF MANAGEMENT'S RESPONSIBILITIES FOR THE PREPARATION AND PRESENTATION OF THE SPECIAL PURPOSE FINANCIAL STATEMENTS FOR THE PERIOD FRON 1 JANUARY 2015 TO 9 JULY 2015 The management of the Community Development and Investment Agency (hereinafter: ARIS) is responsible for the preparation of the special purpose financial statements of "JSDF Grant for Building Demand-side Capacity for Effective Local Governance Project" (hereafter: the Project) financed by Letter Agreement JSDF Grant No. TF010208, that present fairly the Project's cash receipts and payments, expenditures per components, summary reports and SOEs, and designated account movements for the period from 1 January 2015 to 9 July 2015, in compliance with the International Public Sector Accounting Standard "Financial Reporting under the Cash Basis of Accounting" (IPSAS-Cash Basis) issued by the International Public Sector Accounting Standards Board (IPSASB) within the International Federation of Accountants (IFAC) and the Financial Management Manual for World Bank Financed Investment Operations (WB Guidelines). In preparing the special purpose financial statements, ARIS's management is responsible for: * Properly selecting and applying accounting policies; * Presenting information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable information; * Providing additional required disclosures for the period from 1 January 2015 to 9 July 2015. ARIS's Management is also responsible for: * Designing, implementing and maintaining an effective and sound system of internal controls, throughout the Project; * Maintaining adequate accounting records that are sufficient to show and explain the Project's transactions, and which enable them to ensure that the special purpose financial statements of the Project comply with IPSAS - Cash Basis and the WB Guidelines; * Taking such steps that are reasonably available to them to safeguard the assets of the Project and to affirm that funds received have been used in accordance with the Letter Agreement JSDF Grant No. TF010208 and dated 9 March 2012, and World Bank related guidelines, with due attention to economy and efficiency, and only for the purposes for which the financing was provided; and * Preventing and detecting fraud and other errors. The special purpose financial statements for the period from 1 January 2015 to 9 July 2015 were authorized for issue on 28 August 2015 by the ARIS's Management. On behalf of the ARIS' ent: -.VFO tj 44, 1 Ismailov Kubanychbek . ushova Raat Executive Director ancial Manager 3 "1UOU-LUflV11S11 UWkip- "SOS-AUDIT" LTD INDEPENDENT AUDITOR'S REPORT N 79 On the special purpose financial statements of the JSDF Grant for Building Demand-side Capacity for Effective Local Governance Project for the period from 1 January 2015 to 9 July 2015 To the management of the Community Development and Investment Agency (hereinafter: ARIS) We have audited the accompanying special purpose financial statements of the "JSDF Grant for Building Demand-side Capacity for Effective Local Governance Project" (the Project) financed by Letter Agreement JSDF Grant No. TF010208, which comprise the statement of cash receipts and payments, the statement of expenditures per components, the summary of summary reports and SOEs, the statement of designated account for the period from 1 January 2015 to 9 July 2015, and a summary of significant accounting policies and other explanatory notes. Management's Responsibility for the Special Purpose Financial Statements The management of the ARIS is responsible for the preparation and fair presentation of these special purpose financial statements in accordance with International Public Sector Accounting Standard: Financial Reporting Under the Cash Basis ofAccounting, (IPSAS-Cash Basis) issued by the International Public Sector Accounting Standards Board (IPSASB) within the International Federation of Accountants (IFAC), and Financial Management Manual for World Bank Financed Investment Operations, and for such internal control as management determines is necessary to enable the preparation of special purpose financial statements that are free from material misstatements, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express an opinion on these special purpose financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing (ISAs) as issued by International Auditing and Assurance Standards Board (IAASB) within the IFAC. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the special purpose financial statements are free from material misstatement. An audit involves performing procedures to obtain reasonable audit evidence about the amounts and disclosures in the special purpose financial statements. The procedures selected depend on the auditor's judgment including the assessment of the risk of material misstatement of the special purpose financial statements, whether due to fraud or error. In making those assessments, the auditor considers internal control relevant to the preparation and fair presentation of the special purpose financial statement in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. -PpnnL 9npqwp P q0bu UUwuh UungwgLw6 UGfUwd V3; p. bptulw 0037, USliqpwjw(] 38/55; br.' (+37410) 20 11 51; bwpu' (+37410) 20 11 50; www.sosaudit.am; *t-#inum' info@sosaudit.am An Associate of the Crowe Horwath Business Alliance 38/55 A.Tigranyan, 0037 Yerevan, RA; Tel.: (+37410) 20 11 51; Fax: (+37410) 20 11 50; www.sosaudit.am; E-mail: info@sosaudit.am "1UOU-llfil1_-1S"1 U%Q "SOS-AUDIT" LTD An audit also includes the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the special purpose financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Opinion In our opinion, 1. the special purpose financial statements present fairly in all material respects the cash receipts and payments for the period from 1 January 2015 to 9 July 2015 in accordance with IPSAS-Cash Basis; 2. funds have been used in accordance with the conditions of the Letter Agreement JSDF Grant No. TF010208 dated 9 March 2012 between the International Development Association (IDA) and ARIS, and World Bank related guidelines, with due attention to economy and efficiency, and only for the purposes for which the financing was provided; 3. supporting documents, records and accounts have been maintained to support claims for reimbursement of expenditures incurred. Expenditures included in the withdrawal applications and reimbursed against are eligible for financing under the Letter Agreement JSDF Grant No. TF010208 dated 9 March 2012; 4. The Designated account used has been maintained in accordance with the provision of the Letter Agreement JSDF Grant No. TFO 10208 dated 9 March 2012, and World Bank related guidelines. Emphasis of matters Without qualifying our opinion we draw your attention to Note 7 of these special purpose financial statements which disclosed that the Project was completed as at the reporting date. "SOS-Audit" LLC 28 August 2015 DeG taryan Nazik Chitchyan Director Auditor Spnntfl Rnpi4up PhqDbu Uu0Cuh Uung tug4wub UOri.wul BR; 9, bpuLwl 0037, U.S)qptuDjuw 38/55; 3bn.' (+37410) 20 11 51; buwpu (+37410) 20 11 50; www.sosaudit.am; tt-tinuuLn info@sosaudit.am An Associate of the Crowe Horwath Business Alliance 38/55 ATigranyan, 0037 Yerevan, RA; Tel,: (+37410) 20 11 51; Fax: (+37410) 20 11 50; www sosaudit.am; E-mail: info@sosaudit.am - cå c V)- T- V.k tn L^ en oc c Q.QN - - o -4 e m. e no a El o ~< an .c..c . 0 0 ,CPz em ro0e o0 e - e. øa *. . e - . ; o- w or o 0~c~ 0 CL Q. , - U- ,inu -r. 0.0 UD U- 、斤一 搜 】 〕 JSDF Grant for Building Demand-side Capacity for Effective Local Governance Project JSDF Grant No. TF010208 Summary of Summary Reports and SOEs For the period from I January 2015 to 9 July 2015 (Amounts are shown in US dollars) JSDF Grant No. TF010208 Payment categories Total Withdrawal Withdrawal 2. 5. application application 1. Goods Consulting 3.Training 4.Small Operating No value date services grants costs 17 05-Feb-2015 - 10,188.97 10,927.55 19,987 30 - 41,103.82- 18 10-Feb-2015 - - - 48,456.33 10,828.42 59,284.75 19 31-Mar-2015 - 4,008,28 17,536.01 2,277.78 12,397.79 36,219.86 20 28-Apr-2015 10,454,64 3,033.69 7,591.47 - 12,423.18 33,502.98 Total 1 454.64 17,2 30.94 36,055.03 70,721.41 35,649.39 170,111.41 Z V",WOA.P. t Ile Ismailov Kubanychbek shova IUhd Executive Director ncial Manager n2 28 August 2015 The notes on pages 10- 15 forin an integra, special purpose financial statements. 8 JSDF Grant for Building Demand-side Capacity for Effective Local Governance Project JSDF Grant No. TF01 0208 Statement of Designated Account For the period from 1 January 2015 to 9 July 2015 (Amounts are shown in US dollars) Letter Agreement JSDF Grant No. TF010208 Bank account number 1280011173068128 Bank Kyrgyz Investment and Credit Bank Bank location Erkindik 21, Bishkek Account currency USD Reporting period 1. Opening balance as at 01.01.2015 103,752 2. Add: opening discrepancy - 3. IDA advance/replenishment 41,104 4. Less: Refund to IDA from DA (992) 5. Present outstanding amount advanced to DA 143,864 6. DA closing balance as at 09.07.2015 7. Add: Amount of eligible expenditures paid 143,864 8. Less: interest earned (if credited to DA) . 9. Total advance accounted for 143,864 10. Closing discrepancy (5)-(9) Ismailov Kubanyc bek 47shov Rahat Executive Director ncial Manager 28 August 2015 The notes on pages 10-15 form an integral part of these special purpose financial statements. 9 JSDF Grant for Building Demand-side Capacity for Effective Local Governance Project JSDF Grant No. TF010208 Notes to the special purpose financial statements For the period from 1 January 2015 to 9 July 2015 (Amounts are shown in US dollars) 1. General information 1.1. The Project The Letter Agreement JSDF Grant No.TF010208 was concluded on 9 March 2012 between the Community Development and Investment Agency (ARIS) and the International Development Association (IDA), according to which IDA acting as administrator of grants provided by Japan Social Development Fund (JSDF), provided financing to the Kyrgyz Republic in the amount of 1,614,156 US dollars (USD). The financing was provided for the implementation of <